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Informist, Tuesday, Sept. 2, 2025

--Minister Goyal: In dialogue with US for bilateral trade deal 

--CONTEXT: Minister Goyal speaking at Global Sustainability Summit in Delhi 

--Minister Goyal: Big cos can expedite payments to MSMEs to help them

--Minister Goyal: In advanced stage of India-EU free trade agreement

 

NEW DELHI – India and the US continue to hold negotiations over a bilateral trade agreement, said Commerce Minister Piyush Goyal, a day after US President Donald Trump said on social media platform Truth Social that India has offered to cut its tariffs to nothing "but it is getting late".

 

"The US, we are in dialogue with them for bilateral trade agreement," Goyal said Tuesday at the Global Sustainability Summit in Delhi.

 

The US has imposed 50% tariff on imports from India, 25% of which is a punitive measure for New Delhi's continued purchases of crude oil from Moscow.

 

The 50% tariff on Indian goods will affect nearly 55% of India's exports to the US, worth almost $50 billion. Small-scale exporters and micro, small and medium enterprises from labour-intensive sectors, who will particularly bear the brunt of the US' tariffs, have already called for financial assistance from the government in the form of cheaper credit. They have demanded to bring back the government's flagship credit support schemes like the Interest Equalisation Scheme and Emergency Credit Line Guarantee Scheme.

 

Goyal said the government stands firmly behind the domestic industry, but there is huge scope for large companies to help local manufacturers. "You (big corporates) could possibly pay your MSMEs in instead of 90 days-120 days, you can pay them in 7 days. Otherwise, they have to borrow from a bank at 10%, you may be borrowing at 5.5%. If you pay him in time and he pays his supplier on time, the whole chain will help you get your product to sell at a cheaper price. But he will be able to grow his business by money rotation," Goyal told industry members.

 

Goyal also said that the government is making significant progress in signing more free trade agreements with trading partners to support exporters. "While India will continue to have more and more relations with countries around the world to strengthen our friendships with all countries as we continue to have newer trading arrangements with the European Union, Chile, Peru, New Zealand, second tranche with Australia and Oman," he said.

 

"We have already completed Mauritius, Australia's first tranche, the four-nation European Free Trade Association bloc, UAE, lots have happened. We have reached a very advanced stage on our free trade agreement with European Union," Goyal said. "Currently, Commerce Secretary Sunil Barthwal is holding meetings in Brussels."  End

 

Reported by Sagar Sen

Edited by Tanima Banerjee

 

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