India won't allow transshipment of goods to other regions: Piyush Goyal

Says govt has been able to protect domestic steel industry from 'dumping'

Commerce and Industry Minister Piyush Goyal said on Friday that India will not allow irregular practices and trans-shipment of goods from its soil to other regions.

 

“At no point of time, will we allow India to become a route for trans-shipment for breaking the rules of origin, so that other countries bring material into India, maybe do little bit of processing and supply it to a third country, calling it a made-in-India product,” Goyal said at an industry event, urging India Inc to remain vigilant.

 

While the minister did not refer to any country, his remarks came against the backdrop of the United States (US) Vice-President JD Vance’s statement on Tuesday. Vance had said America seeks trade partners on the basis of ‘fairness’ and who do not serve as ‘conduits’ for trans-shipping goods from other countries.

 

 

The US is India’s largest trade partner. Both the countries are in talks to launch negotiations for an early tranche of a trade deal.

 

The minister further said the government has been able to protect the domestic steel industry from ‘dumping’ and low quality steel being imported into the country. This has been done by the imposition of a 12 per cent safeguard duty on steel imports for a period of 200 days. However, he urged the industry to give preference to Indian suppliers and not ‘conveniently’ import.

 

“...wherever you see an Indian supply, you will give preference and not conveniently import your requirements to the detriment of some other Indian company or manufacturer,” Goyal said. 

 

“It’s a wake up call. (Just) like you need protection from dumping, or protection from low quality steels being imported into the country at irrational prices, you have a duty and obligation to support your supply chain. I hope this message goes down deep, not only to the steel industry, but to everybody across the country,” he said.

 

The minister further said that India is seeking greater market access for its steel sector through the free trade agreement (FTA) negotiations that it is engaged with.

 

“We are working on at least 10-12 FTAs with countries or block countries, like the European Union (EU), which will mean 27 countries within one block. And, in every one of them, we are working to see how we can get greater access for our cost effective and high quality steel sector,” Goyal added.

 

Apart from the EU and the US, India is negotiating trade deals with the United Kingdom (UK), New Zealand, Peru, Chile and Oman. Talks for a trade deal with Bahrain, Qatar or the Gulf Cooperation Council (GCC) may also materialise.