NEW DELHI: Commerce Minister Piyush Goyal on Sunday said India will have no problem in purchasing goods worth USD 500 billion from the US over the next five years, terming it a very conservative number, given that India's growing economy will generate a demand of about USD 2 trillion.
At present, he said, India could source imports worth about USD 300 billion from the US that it currently buys from other countries.
"We are even today importing 300 billion dollars of goods that can be imported from the US. We are importing from all over the world. That is going to grow up to two trillion in the next five years... I told my counterparts that look, I can assure you that there is demand in India, but you have to be competitive," Goyal told PTI Videos in an interview.
He also said adequate safeguards are in place in the trade agreement with the US to protect the interests of farmers and the domestic industry from any significant increase in imports.
India and the US on Saturday announced that they have finalised the framework for the first phase of the bilateral trade agreement. According to a joint statement, India has expressed its intention to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
The commerce minister said big tech firms have announced large investments in India and, therefore, "my sense is that we will see 10 gigawatts of data centres" in the country, and for that India will need equipment, which the US can supply.
Asked whether the USD 500 billion purchase plans from the US include orders India has already placed for Boeing aircraft, he said, "Everything that we are talking about is in continuation and includes what we already are purchasing."
Even today, he said, India is importing between USD 45-50 billion from the US, and these are products which India does not produce.
"We are going to need aircraft. We are going to need engines for aircraft. We are going to need spare parts. We already have USD 50 billion worth of orders on Boeing alone for aircraft. We have orders for engines," he added.
In addition to that, the minister said India requires spare parts.
"So, almost 80, 90 billion (dollars) is already on order for the next five years. We will actually need more than that. I read the other day that Tata plans to place some more orders. My sense is we need at least a 100 billion dollar plus only for the aviation sector, in addition to oil, LNG, LPG, and crude oil," he said.
Further, he said the country requires cooking coal for the steel industries.
"India is already importing about 17-18 billion tonnes of cooking coal. When we reach 300 billion, which is a stated target and expansion is going on at breakneck speed in the steel industry. We'll need 30 billion dollars per year for cooking coal alone. And all of these products I'm mentioning are already being imported since the Congress time, since the UPA was in power. Nothing new," he said.
The demand for these goods is increasing in the world's fastest-growing large economy, he added.
"There's a growth of demand and consumption of all of these products. In addition, we announced in the budget that we want to promote data centres, we want to promote the AI mission, and we want to promote critical manufacturing and critical minerals processing in India. All of this will require high-quality machinery, ICT products, and Nvidia chips, as well as machinery for AI for quantum computing. Where is all of that going to come from?" he said.
He added that the most powerful technology provider is the United States.
"So, 100 billion (dollars per year) is very conservative. I think it's extremely conservative for a country which wants to become a 30 trillion dollar economy, which India intends to," Goyal added.
India negotiating deals from position of strength
Meanwhile, Goyal asserted that the India of today is negotiating trade deals from a position of strength and confidence that it can offer a future market of USD 35 trillion.
"Today, India negotiates from a position of strength... I start by saying look we are 4 trillion dollar economy today, but it is going to be 30-35 trillion by 2047, when we are a developed economy," he said.
"That's what is our negotiating strength... And that is the confidence that india has today, that delta of opportunity from 4 trillion to 30-35 trillion, that is the future we offer," he added.
In recent months, Goyal presided over eight free trade agreements (FTAs), notably with the UK, the European Union, and Australia, as well as the most talked about deal, the agreement announced on Saturday on reducing US tariffs from 50 percent to 18 percent.
Asked to give a sense of behind-the-scenes action during negotiations, Goyal said, "Well, I think it is fun. Negotiations are all about being sharp on the uptake, being able to crystal-gaze into the future, looking at things laterally so that you don't get stuck at a point without understanding the many-dimensional ramifications".
"Negotiations are a lot about keeping your cool. Though occasionally, for effect, you may even lose your temper," he said.
He added that India's style of deal-making has been to respect the other country's sensitivities as "we expect them to respect our sensitivities."
When asked about about the US negotiators, Goyal said, "In all nine negotiations, I must say on a personal note, I built up very good relations with my counterparts."
"So, in every country, USTR (United States Trade Representative, the de facto commerce minister) and other officials, other ministers in the US have become, like, so close that I could say they are like family members," Goyal added.
"We can pick up the phone and call up any of them at any point in time... there was a time I actually sent a message, 'are you free, can I call?'. And I got a shout-back: 'call anytime, 24 hours, don't even bother to message me.' So, that's the kind of rapport we built," he said.
But ultimately, it is about protecting one's interest and looking for maximum benefit for one's country, the commerce minister said, adding that "we should respect that."
"We should also respect the fact that it is a tough job. Because what we do in an FTA is going to affect the nation and our country for decades to come. So, one has to be cautious, one has to be sharp, and at the same time, you build a rapport with the negotiator because there's often that rapport that helps you get some additional benefits."