India Stands Firm Against Trans-Shipping Practices: Minister Goyal's Strong Message

Commerce and Industry Minister Piyush Goyal affirmed that India will not allow trans-shipment practices that violate rules of origin, emphasizing vigilance among businesses. Highlighting efforts to shield the domestic steel industry, he noted the imposition of a 12% safeguard duty on imports and urged firms to prioritize Indian suppliers. Goyal also discussed ongoing Free Trade Agreement (FTA) negotiations with key global partners, aiming to secure greater market access for cost-effective Indian steel. His remarks reflect India's commitment to fair trade and economic self-reliance.

In a firm stance against irregular trade practices, Commerce and Industry Minister Piyush Goyal emphasized on Friday that India will not permit its territory to be used as a channel for trans-shipment activities that violate rules of origin in global trade. Speaking at an industry event, Goyal urged Indian businesses to remain vigilant and actively prevent such practices. His comments come at a time when global trade dynamics are increasingly under scrutiny.

"India will not become a route for trans-shipment that circumvents rules of origin. We will not allow other countries to use India for minimal processing and then re-export products falsely labeled as 'Made in India,'" Goyal stated. He called on India Inc. to show responsibility in upholding these principles, signaling the government’s commitment to maintaining integrity in its trade practices.

A Message Against Unfair Trade

Although Goyal refrained from naming specific nations, his remarks align with recent statements by U.S. Vice President JD Vance, who emphasized the need for trade partnerships based on fairness. Vance had cautioned against trading with countries that serve as conduits for trans-shipping goods, a concern that resonates with India's approach.

The U.S. remains India's largest trading partner, and both nations are currently exploring the possibility of initiating negotiations for a trade agreement. Against this backdrop, Goyal’s statements underline India’s intent to align with global standards of trade fairness while safeguarding its domestic economy.

Shielding the Steel Industry

Turning his attention to the steel sector, Goyal highlighted the government’s efforts to protect domestic manufacturers from unfair competition and substandard imports. He pointed out a significant measure—the introduction of a 12% safeguard duty on steel imports for 200 days. This move aims to curb dumping and ensure the quality of imported steel.

However, the minister also laid emphasis on the responsibility of Indian businesses to prefer domestic suppliers. "If you expect protection from dumping or low-quality imports, you must also support your supply chain by prioritizing Indian suppliers," Goyal said. He termed this approach a "wake-up call" for industries across the country, urging them to foster a self-reliant ecosystem.

Expanding Global Market Access

In addition to protective measures, India is striving to open new avenues for its steel industry through Free Trade Agreement (FTA) negotiations. Goyal revealed that India is actively working on 10-12 FTAs, including agreements with the European Union (EU), which represents 27 member nations.

“We are negotiating these agreements to secure greater access for our high-quality and cost-effective steel sector,” Goyal noted.

India’s FTA discussions extend beyond the EU and the U.S., targeting multiple nations and regions such as the United Kingdom, New Zealand, Peru, Chile, and Oman. Furthermore, potential trade deals with the Gulf Cooperation Council (GCC) and its member nations, including Bahrain and Qatar, are also on the horizon.

A Balanced Path Forward

As India navigates its expanding role in global trade, Minister Goyal’s remarks reflect a dual strategy: safeguarding the domestic economy while pursuing greater international market access. The government’s focus on enforcing trade integrity, supporting local industries, and fostering equitable partnerships underscores its vision for sustainable economic growth.