Union Commerce Minister Piyush Goyal gave an assurance to Parliament on Thursday that India will do all it takes to protect its national interests during current and future trade talks.
He made the statement amid US President Donald Trump's announcement to slap a 25% tariff, along with other penalties on Indian imports, from August 1.
Addressing the Lok Sabha, Goyal dismissed Trump's description of India as a "dead economy" by presenting the contrarian view pointing towards India's remarkable advancement in the world economic rankings. "India has shifted from being the 11th-largest economy of the world to becoming the fifth-largest economy in a decade, and it remains the fastest-growing economy in the world," he replied.
Goyal noted that international institutions consistently view India as a key driver of global economic growth. “India has successfully negotiated Free Trade Agreements (FTAs) with the UAE, UK, Australia, and the EFTA bloc. Our goal is to expand this network further,” he said.
Emphasizing India's economic resilience, the minister attributed sustained reforms, the resilience of MSMEs and industries to push the country to the fourth-largest economy in the world. "We are progressing continuously towards becoming the third-largest economy," he further added.
The Minister reiterated the government's seriousness towards the well-being of important sectors. "Our endeavours for the empowerment and support of our farmers are unrelenting. The way forward to 'Viksit Bharat' is obvious, and we are progressing with confidence with our 'Make in India' programme," Goyal said.
Touching upon bilateral relationship with the US, Goyal unveiled that the two countries are actively negotiating to seal a mutually beneficial Bilateral Trade Agreement (BTA), where the first structure is expected to be completed by October–November 2025.
He briefed on recent events, saying, "On April 2, 2025, the US President issued an executive order implementing a reciprocal tariff policy, with a 10% baseline duty effective from April 5. For India, this amounted to a 26% tariff, with country-specific rates initially scheduled to be implemented by April 9. The deadline was later prolonged by 90 days, and again to August 1."
India and the US started official trade negotiations in March 2025, with an ultimate goal of a comprehensive BTA. Both countries have reaffirmed their determination to ensure that the agreement is beneficial to mutual economic and strategic interests.
At the same time, India's economic prospects continue to be strong. The International Monetary Fund (IMF) in its recent World Economic Outlook raised the growth forecast for India's GDP in FY26 and FY27 to 6.4% from a more encouraging world environment as opposed to its April estimate. The revision upwards comprises a 20 basis points enhancement in FY26 and a 10 basis points increase in FY27.
In a statement last week, the Commerce Ministry reiterated India's resolve towards a balanced and equitable trade deal with the United States. "Our emphasis continues to be on safeguarding and advancing Indian farmers, MSMEs, and entrepreneurs' interests," the ministry added.
The government again asserted that it will continue to go to international trade negotiations with a firm determination to secure national interests. This is in line with its previous approach in recent deals, such as the Comprehensive Economic and Trade Agreement signed with the United Kingdom.
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