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Informist, Friday, Apr. 25, 2025

 

 

--Trade minister: Will never let India become a hub of transshipment 

--CONTEXT: Trade Minister Goyal speaking at India Steel 2025 event 

--Trade minister: Will stay committed to rules of origin norms 

 

 

NEW DELHI – At a time when there are risks of cheaper Chinese products being dumped in India, as an aftermath of the steep reciprocal tariffs announced by Washington on Beijing, Commerce and Trade Minister Piyush Goyal said that, at no point in time, will India ever lend itself to irregular practices like trans-shipment of goods--process where companies import goods, make minor changes, and export them as a "Made in India' product. "It will ultimately safeguard the domestic industry," Goyal said at the 6th India Steel Event in Mumbai.  

 

 

In order to ensure India's image and integrity remains intact across the world, "we need to keep monitoring what is coming in," he said. In the course of the ongoing tariff war, triggered by US President Donald Trump's sweeping reciprocal tariffs, China now faces up to 245% tariffs on imports to the US. In this context, there are apprehensions that cheap Chinese products may be dumped in India for repackaging as an Indian product for further exports. "We will stay fully committed to rules of origin regulations," he said. 

 

To protect the steel industry, the government on Monday imposed a 12% provisional safeguard duty on some steel products imported into the country for the very same reason. Imposition of the duty was recommended by the Directorate General of Trade Remedies last month to "eliminate the serious injury and threat thereof to the domestic industry" from any trade diversion caused by US tariffs.

 

While Washington has announced reciprocal tariffs on New Delhi as well, it is much less than that on China at 26%. Moreover, India is negotiating a Bilateral Trade Agreement with the US which may aid in escaping US' tariffs. The US is India's top export destination with a share of 19% in total outbound shipments in 2024-25 (Apr-Mar).

 

Goyal further said that India has earned the title of "trusted (trade) partner" because of its fair practices, nudging many countries to want to sign trade agreements with it. He said that he is currently engaging with numerous countries for 10-12 trade agreements and in every one of them, "we are working to see how we can get greater access to our cost-effective and high-quality steel sector." 

 

He said that amid the global turbulence and uncertainty from the tariff situation, "one thing is for certain, the world is looking up to India as a driver of global growth."  End

 

US$1 = INR 85.41

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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