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India's trade pacts with richer nations create mutual benefits: Piyush Goyal

Created at 11 Jun · 6:45 PM2 sources↑ Market-relevant2 events
IN SHORT

India must expand international engagement to achieve its goal of a $30 trillion economy by 2047, according to Commerce and Industry Minister Piyush Goyal. He highlighted that developed nations' demographic challenges offer opportunities for India's skilled workforce, and strategic partnerships will complement, not compete with, Indian industry.

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Key Numbers

$30 trillionIndia's target economy size by 2047
2047Year India aims to be a developed country
9Free trade agreements signed by India
38Countries covered by India's FTAs
1.4 billionIndia's consumer market size
3-3.5 yearsTimeframe for signing FTAs

Who's Involved

Piyush Goyal
Union Minister of Commerce and Industry
Claude Smadja
Chairman of Smadja & Smadja

↳ Why This Matters

India's strategy to achieve developed nation status by 2047 hinges on expanding global trade ties and attracting foreign capital, aiming to leverage its demographic advantages and skilled workforce.

Key facts

  • India aims to become a $30 trillion economy by 2047 through expanded international engagement.
  • Developed nations' demographic challenges present opportunities for India's skilled workforce.
  • India has signed nine free trade agreements covering 38 countries in the past 3-3.5 years.
  • These agreements provide access to India's market and attract foreign capital.
  • Collaborative models are essential due to high R&D and production costs in developed economies.

Union Minister of Commerce and Industry Piyush Goyal stated that India must expand its international engagement to achieve its vision of becoming a USD 30 trillion economy by 2047. Speaking at the 5th Annual Meeting of the India Global Innovation Connect, Goyal emphasized that India's economic growth is not a zero-sum game and is deeply linked to fostering strategic partnerships with developed nations.

Goyal highlighted that these partnerships complement, rather than compete with, Indian industry. He noted that developed economies face demographic challenges, such as aging populations, creating a need for young talent and skills that India possesses in abundance. The high costs of research, development, and production in these advanced nations make a collaborative model essential.

India has entered into nine free trade agreements in the last three to three-and-a-half years, covering 38 countries that are significantly richer than India. These pacts offer these nations access to India's market of 1.4 billion aspirational consumers and are intended to channel much-needed capital into the Indian ecosystem.

During his visit, Goyal also interacted with Claude Smadja, Chairman of Smadja & Smadja, discussing the government's efforts to boost infrastructure, strengthen India's position in global supply chains, and enhance the ease of doing business while fostering innovation-led growth.

Frequently asked questions

India aims to become a developed country with an economy of approximately USD 30 trillion by 2047.

India plans to achieve its economic goals by expanding international engagement and forming strategic partnerships with developed nations.

Developed nations' demographic challenges, such as aging populations, create a need for young talent and skills, which India has in abundance.

India has signed nine free trade agreements covering 38 countries in the last three to three-and-a-half years.

What Happens Next

01Further details on the implementation of the India-EFTA Trade and Economic Partnership Agreement are expected.
02Additional trade agreements with high-income nations may be pursued by India.

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Cadence

How It Developed

Piyush Goyal stated that partnerships with higher per capita income nations benefit India by combining its talent with developed economies' capital and technology.
Piyush Goyal stated India must expand international engagement to achieve its USD 30 trillion economy goal by 2047.
Goyal emphasized that India's economic growth is linked to strategic partnerships with developed nations.
He noted that developed economies face demographic challenges, creating openings for India's skilled workforce.
Goyal explained that high costs of R&D and production in developed nations make a collaborative model essential.
He stated that large parts of Europe, the US, Canada, Israel, Gulf countries, Australia, and New Zealand pose no threat to India.
India has entered into nine free trade agreements in the last 3-3.5 years, covering 38 countries.
These pacts offer these nations access to India's market of 1.4 billion consumers and attract capital.

Sources

T1
Tieups with higher per capita income nations beneficial to all: Piyush GoyalThe Economic Times
T1
India must expand international trade ties to reach $30 trillion economy vision by 2047: Piyush GoyalThe Economic Times

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