Page 69 - Plastics News July 2025
P. 69
BUSINESS NEWS
2019–20 to 2024–25, goods exports grew at a Tackling China Trade Imbalance
CAGR of 6.9%, defying pandemic-era challeng-
es. Electronics exports were a standout, growing Addressing concerns over the near $100 billion
at a CAGR of 20%, while engineering goods and trade deficit with China, Goyal pointed out that
pharmaceuticals also performed strongly. the deficit grew 25 times during UPA rule but
only 1.75 times since 2014. While key imports
Looking ahead, Goyal anticipates 5–6% growth from China—such as electrical equipment, chem-
in goods exports, particularly non-petroleum icals, and plastics—remain high, many are now
products, and 9–10% growth in services, pro- used as inputs for Indian-manufactured exports.
jecting total exports to cross $870 billion in
2025. “Our focus is more and more on value- India continues to raise issues of non-tariff bar-
added and labour-intensive goods and services riers with China, including language challenges,
exports,” he said. procedural delays, and restricted market ac-
cess. “We are working through our embassy to
FTAs Fuel Trade Gains improve the situation,” he said. On calls to ease
restrictions on Chinese apps and investments,
Goyal credited recent FTAs signed with UAE, Goyal stated, “If China is willing to engage fairly,
Australia, EFTA, and the UK for driving signifi- India will be open to dialogue. Time will tell.”
cant gains. Services exports to the UAE nearly
doubled, while exports to Australia tripled. “With Growth Sectors and Domestic Push
Australia, goods exports grew 25% to over $8
billion from just $3 billion earlier,” he noted. Despite some signs of a first-quarter slowdown,
Goyal said rural demand is picking up, and sec-
However, he criticized older FTAs from the UPA ond-half growth could accelerate, allowing In-
era, particularly with Japan and ASEAN, citing dia to meet the RBI’s 6.5% GDP target. He cited
limited gains and imbalanced terms. “Japan has strong investments in steel (₹20 lakh crore over
not agreed to a review yet, but we are hopeful,” 10 years), cement, auto parts, sanitaryware,
he said. India is actively pursuing renegotiations and electronics.
to make these agreements more equitable.
India’s PLI scheme has improved domestic
Goyal also justified India’s decision to opt out of value addition in sectors such as semiconduc-
the RCEP, calling it a move to protect farmers, tors, which Goyal hailed as a success story. The
MSMEs, and national interests. “Only three out government is also tightening Quality Control
of 200 stakeholder consultations were in favour Orders (QCOs) to ensure “zero defect, zero ef-
of joining,” he said, calling it “essentially an FTA fect” manufacturing, targeting substandard im-
with China.” India has since signed an Econom- ports and promoting high-quality domestic pro-
ic Cooperation and Trade Agreement (ECTA) duction.
with Australia and is working on an agreement
with New Zealand. Industrial Corridors and New Parks
Progress is also being made on industrial infra-
July 2025 PLASTICS NEWS 69
