Piyush Goyal Discusses Bangladesh Unrest and BIMSTEC Free Trade Agreement in Delhi
New Delhi [India], August 7: Amid ongoing political unrest in Bangladesh, Commerce and Industry Minister Piyush Goyal called the situation concerning and extended his wishes for a smooth transition. While addressing the BIMSTEC Business Summit organized by the Confederation of Indian Industries (CII) in Delhi, the Union Minister said, “We are all deeply concerned about the evolving situation in Bangladesh and we wish the people of Bangladesh our best wishes for a smooth transition and a bright future in the years to come.”
Addressing the Special Plenary Session of BIMSTEC, Goyal urged the need to re-examine the priorities and reconsider the possibilities of a Free Trade Agreement (FTA) between BIMSTEC countries. Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand are the member countries of BIMSTEC. Representatives from Bangladesh did not attend the event due to the unrest in Bangladesh.
CII in its recommendation paper, released yesterday, added that BIMSTEC countries should finalize a Free Trade Agreement (FTA). The CII paper further added that the move will lead to quicker implementation and promote investment, job creation, technology partnerships, and services.
Goyal said, “I see the burning desire amongst all the member countries to pursue greater trade, greater engagement among us, and possibly enter into a Free Trade Agreement (FTA). Almost every speaker (Minister) spoke about the FTA. After 22 rounds of negotiations, which started six years ago, we were unable to agree on an FTA within BIMSTEC. It is clearly time to reassess what is holding back our negotiations, whether it is non-tariff barriers or trade barriers. Maybe we can begin with something small. Let’s examine the realistic possibility and move forward on a fast-track basis.”
Goyal emphasized that regional integration needs to be strengthened. “We could look at payment in local currencies within this region and balance out the trade between different countries.”
On the July export numbers, Goyal said that geopolitical issues, including the Red Sea crisis, are ongoing, presenting many challenges. However, he expressed confidence in India’s strength, stating that despite these challenges, India will maintain its position as the fastest-growing economy globally.
Responding to a question on achieving the export target, Goyal said, “We are hopeful that India will achieve the overall export target of USD 800 billion in FY25.” As India’s exports in the first quarter of 2024-25 (April-June) crossed the USD 200 billion mark, the government has expressed its optimism about reaching its full-year target of USD 800 billion. India’s overall exports, merchandise and services combined in the month of June were to the tune of USD 65.47 billion, a 5.4 rise on a yearly basis, commerce ministry data showed. Same month last year it was at USD 62.12 billion. In break up, exports of merchandise goods rose from USD 34.32 billion to USD 35.20 billion, and exports of services rose from USD 27.79 to USD 30.27 billion.
Doubts Revealed
Piyush Goyal -: Piyush Goyal is an important person in the Indian government. He is the Commerce and Industry Minister, which means he helps manage trade and business for India.
Bangladesh Unrest -: Unrest means there are problems or conflicts happening in Bangladesh, a neighboring country of India. This can include protests or political issues.
BIMSTEC -: BIMSTEC stands for Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation. It is a group of countries around the Bay of Bengal that work together on different projects.
Free Trade Agreement -: A Free Trade Agreement is a deal between countries to trade goods and services without many taxes or restrictions. This makes it easier and cheaper to do business.
Delhi -: Delhi is the capital city of India. Important meetings and events often happen here.
Regional Integration -: Regional Integration means countries in a certain area work closely together. They help each other with trade, business, and other important things.
Local Currency Payments -: Local Currency Payments mean using the money of your own country to buy and sell things with other countries. This can make trade easier and cheaper.
Geopolitical Challenges -: Geopolitical Challenges are problems between countries that can affect trade and business. These can include conflicts, political issues, or other disagreements.
USD 800 billion -: USD 800 billion is a very large amount of money. USD stands for United States Dollar, which is a type of currency used in many countries for international trade.
FY25 -: FY25 means the financial year 2025. A financial year is a 12-month period used for budgeting and financial planning.
