Trade Talks: Other Countries Want 'Piece Of Our Pie', Says Commerce Ministry Official
India has already signed free trade agreements with 27 countries and is pursuing several more with developed economies to secure bigger market access for domestic producers.
With multiple free trade agreements on the way and a few already signed, it is likely that India will face pressure in global trade negotiations as more countries look to tap into its fast-growing market, according to Rajesh Agrawal, special secretary in the Ministry of Commerce.
Agrawal noted that India must be mindful of its own limitations as it pursues greater integration with the world economy. He further said that once "our market opens up, competition will intensify, and India will need to grow much faster than the current pace in order to achieve the vision of Viksit Bharat".
Speaking at an industry event organised by the Society of Indian Automobile Manufacturers on Thursday, Agrawal said, “There will be pressure on India. Other countries will want a piece of our pie."
India has already signed free trade agreements with 27 countries and is pursuing several more with developed economies to secure bigger market access for domestic producers. However, in order to ensure the security of various sectors in the industry, a dedicated group within the Commerce Ministry has been set up to continuously monitor challenges faced by industries across sectors, ensuring trade policy decisions are aligned with national interests.
Agrawal emphasised that India is gradually opening sensitive sectors under FTAs, often using quotas as a calibrated approach to balance domestic concerns with external commitments. However, he added that there is a need to keep in mind the handicaps as the competition intensifies.
Among the most significant ongoing negotiations is the proposed free trade agreement with the European Union, which Agrawal described as the “biggest FTA” for the automobile sector. The pact is expected to unlock new opportunities for Indian auto manufacturers, while also creating pathways for partnerships with leading European carmakers. He further said that the target is to close the EU FTA "as soon as possible". This according to Agarwal will enable new partnerships with some of Europe’s biggest auto giants.
Highlighting the broader trade strategy, Agrawal stressed that resilient supply chains are crucial but come with costs that India must be prepared to bear. The government’s task, he said, is to ensure that India remains competitive while also safeguarding domestic interests as global trade partners push for greater access to its booming market.
