The meeting between Commerce and Industry Minister Piyush Goyal and his Chinese counterpart Wang Wentao on the sidelines of the BRICS Summit here last week kicked off discussions to address India’s key trade and economic concerns, Commerce Secretary Rajesh Agrawal said on Tuesday. A mutually agreed formula may be thrashed out with subsequent deliberations likely over the next few weeks.
The meeting followed bilateral discussions between Prime Minister Narendra Modi and Chinese President Xi Jinping where they underlined the need to address each other’s concerns, including structural trade imbalance, supply chain issues, and the facilitation of meaningful and predictable market access.
“I think both sides are engaged to understand each other’s position on many of these issues. And this is the initial meeting. I think there will be subsequent meetings to take these discussions forward,” Commerce Secretary Rajesh Agrawal said. “ Slowly, each side will need to come up with their issues and also their position on issues of the other side, so that we can take this forward,” he added.
“They have also opened up to address concerns in a balanced way. We are also open to engaging with them to find solutions to our trade issues in a manner so that we can address supply chain issues and structural imbalances,” Agrawal said.
India is seeking to address its widening trade deficit with China, improve market access for Indian products and ensure predictable supplies of critical raw materials and industrial inputs, including those important for manufacturing and supply chains.
Economic engagement between the two countries had slowed sharply following the 2020 Galwan clashes, with several diplomatic and economic mechanisms disrupted. Bilateral engagement began improving after the October 2024 border patrolling and disengagement arrangements, with high-level political and trade contacts resuming around the BRICS Summit in New Delhi.
New Zealand FTA from October 19
Agrawal said the India-New Zealand free trade agreement (FTA) is expected to become operational in the second half of October. The agreement was concluded in December and signed in April, with October 19 reported as the likely date for its entry into force.
Canada talks on tight timeline
India and Canada are holding the fourth round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in New Delhi from September 14-19.
A 48-member Canadian negotiating team is participating in the talks, which cover all chapters on the table. Two chapters have already been concluded, Agrawal said.
“Both sides want to have good progress in this round because we are looking at a very tight timeline,” he said, adding that the two countries are working to conclude the agreement by the end of this year. The terms of reference for the negotiations were signed in March.
Goyal-US talks likely
Agrawal also said Goyal is expected to hold bilateral discussions with US officials during his visit to the US for the G20 Trade Ministers’ meeting.
“Whenever the bilateral talks take place, I think all trade issues between India and the US will be discussed,” he said.
India and the US are currently working to finalise an interim trade agreement as a step towards a broader Bilateral Trade Agreement (BTA).