Piyush Goyal at Embassy of India, Washington DC. / X/@PiyushGoyal

Indian Commerce and Industry Minister Piyush Goyal emphasized the ever-growing strength of the India-US relationship, describing it as "transcending politics", during a media interaction at Embassy of India, Washington DC.

After concluding his brief visit to the US, where he met with U.S. Commerce Secretary Gina Raimondo, US Trade Representative (USTR) Catherine Tai, and various industry leaders, Goyal highlighted trade and industrial cooperation between the two nations as critical to future growth.

Reflecting on bilateral engagements, Goyal remarked, "We have worked with three administrations. InModi's tenure, we had the Obama administration, Trump administration, and now the Biden administration." According to Goyal, the relationship between the two countries is expanding and maturing with frequent high-level interactions. "This relationship is only getting better and maturing from month to month," he added.

Milestones in critical minerals and semiconductor supply chains

A key highlight of Goyal's visit was the signing of the Memorandum of Understanding (MOU) on critical minerals. This agreement is seen as a significant step in securing supply chains and fostering deeper engagement between the two countries. "We executed the MOU on critical minerals to keep supply chains open and for greater engagement," Goyal stated.

At the ninth India-US CEO Forum, discussions centered on areas like space, aviation, clean energy, and technology. India continues to attract global investors, with several expressing ambitious plans. Goyal shared, "One large investor mentioned they’ll celebrate 20 years of investments in India by adding a few more billion dollars into the Indian economy."
 

From strength to strength pic.twitter.com/fkbGOw7kKt

— Piyush Goyal (@PiyushGoyal) October 3, 2024

WTO shift from litigation to cooperation

Goyal also noted the transformation of India and the US's role within the World Trade Organization (WTO). The two countries, once litigious at the WTO, have now adopted a more cooperative stance. "We are moving toward a positive engagement level rather than a problem-solving engagement," he explained.

Addressing former USTR Robert Lighthizer’s comments on India being labeled protectionist, Goyal remarked, "Every country protects certain goods based on their national interest," adding that India's trade policies remain aligned with the Most Favored Nation (MFN) system. He also outlined the importance of Free Trade Agreements (FTAs) in overcoming trade challenges.

Future outlook: Continued collaboration with the US

Looking ahead, Goyal stressed the importance of continued India-US collaboration in third countries and on joint projects. He expressed optimism about the future of the bilateral relationship, stating, "We are sure to continue working together with the same spirit of mutual trust that defines this relationship."

Manufacturing sector holds steady amid global challenges

Despite global challenges like the COVID-19 pandemic and geopolitical tensions, India’s manufacturing sector has remained robust. "Our manufacturing share has been maintained at 17 percent through this period," Goyal said, crediting programs like Make in India and production-linked incentives (PLI) for sustaining growth.

India’s role in global supply chains has also expanded, with major companies such as Apple increasing their operations. Goyal noted, "Apple exported $5 billion worth of smartphones from India in the first five months of the fiscal year, and expectations are to increase exports to $15 or $16 billion."

Tackling Unemployment and Trade Deficits

In response to unemployment concerns, Goyal pointed to record low unemployment rates and high demand for skilled labor. "Businesses and industries are crying for people," he said, noting that L&T’s infrastructure division alone requires 45,000 workers.

On the subject of trade, the official criticized previous governments for allowing an influx of Chinese goods, leading to a significant trade deficit. "Our trade deficit went up from $1.8 billion to $43 billion in 10 years," Goyal pointed out, noting that the current administration has slowed the growth of the deficit.

Looking forward, India aims to become a developed and prosperous nation by 2047. "We are all together in making the lives of the people of India better in the years to come," Goyal concluded, emphasizing the ambitious targets for continued economic and manufacturing growth over the next decade.