NEW DELHI: The Minister for Commerce and Industry, Piyush Goyal, on Friday said that India is well-placed to handle a crossfire resulting from global trade tensions, on the strength of the country’s economy.
“Obviously, in a situation when the world is seeing trade wars across nations, across continents, India will come in the crossfire. But then it’s a crossfire that we can handle,” Goyal said during the Question Hour in Rajya Sabha.
To safeguard the interest of US manufacturers, the Donald Trump regime has raised duties on imports, which triggered a global trade war. Other countries, including India, retaliated by raising import duty on goods from the US.
While the US has imposed higher tariff on key products such as like steel and aluminium, India recently hiked customs duties on as many as 28 US products, including almond, pulses and walnut.
Goyal dismissed contentions that India’s exports have been hit badly after the US has terminated its Preferential Trade Treatment or GSP (Generalised System of Preferences) to India from June 5 this year.
“I would like to submit that the total impact of GSP is under $250-269 million in a year and for a country of the size and strength of India, I can assure members (of the House) that it will not have any significant impact,” he said.
India exported goods worth $6.3 billion to the US in 2018 under their export incentive programme. The total duty concessions accruing on account of the GSP were $240 million in 2018, Goyal said in a written reply to the Rajya Sabha. These concessions will no longer be available.
GSP, the minister said was unilateral, non-obligatory concession given by the US to India as a developing country. He further said that India will continue to negotiate with all countries, including the US, but not at the cost of sovereignty.
India exports steel and aluminium products worth about $1.5 billion to the US every year. Indian exports to the US in 2017-18 stood at $47.9 billion, while the imports were to the tune of $26.7 billion. The trade balance is in India’s favour.
Strong warning
Goyal warned multi-retail brands that have been caught in the wrong side of the law. He asked them not to violate the spirit of the law, saying that the government will take violations like round-tripping seriously. Goyal also advised lawyers and Big 4 audit firms (PwC, Deloitte, KPMG and E&Y) not to misguide investors.
DPIIT forms panel on e-commerce
A Standing Group of Secretaries on e-commerce has been set up under the Secretary, Department for Promotion of Industry and Internal Trade. A draft National e-Commerce Policy has been placed in the public domain.