“We need to be convinced that BYD will play by the rules,” Goyal said, stressing that India must be cautious about who it allows into its market. “As of now, it’s a no for BYD,” he added, pointing to a combination of concerns and “a mix of issues” influencing the government’s stance.
The commerce minister’s remarks come amid heightened scrutiny of China’s global trade practices and the growing perception that the world’s second-largest economy has not adhered to fair play. Goyal traced the origins of current global economic uncertainty to China’s accession to the World Trade Organization (WTO).
“The world has built itself to reach this stage over decades, not an overnight development. I believe the starting point of this churn is when China was admitted into the WTO,” Goyal said. “The world was convinced that China would transform and be transparent, but it closed its eyes while China’s growth was fueled by unfair trade practices. The foundation of China’s growth was every action improper in the rules of the game.”
Goyal also pushed back against interpretations of his earlier remarks on predatory pricing and hidden subsidies. “I have been misunderstood about my comments on threats due to predatory pricing, hidden subsidies that are targeted to attack economies,” he said.
He noted that the global preference for cheap goods was “myopic” and had contributed to the turbulence that markets are now experiencing. “The world is going through turbulence. We saw the last 24 hours of stock market performance globally—fortunately, India was at the bottom of it,” he said. “These are challenging times, reflective of a world in turmoil.”
Still, he struck an optimistic note about India’s ability to weather the storm. “India stands at a moment in history to convert the current situation into an opportunity,” he said, adding, “We are in a sweet spot, and while there will be short-term challenges, we must believe in ourselves and that we are in safe hands under the leadership of Prime Minister Modi.”
On the issue of tariffs, particularly in relation to the United States, Goyal said the decision was driven by the need to protect India’s economy from unfair trade practices. “Tariffs are a protection against unfair trade practices. Our tariffs have to do with protection of economy,” he explained. “Applied tariffs to the US are 7-8%, not huge.”
When asked about delays in tariff announcements, he said he could not share what was being discussed behind closed doors. “Can’t discuss what is being said in the boardroom at a public forum,” he said.
He highlighted India’s willingness to work with countries that offer a level playing field. “We can work with countries bilaterally that have fair trade practices,” he said. “We have elbow room to work with developed countries and find equal opportunity, bilaterally.”
Goyal also noted that India had been more open than China when it came to allowing foreign tech companies. “India has opened arms to big tech like Meta when China and others didn’t,” he said.
Asked whether tariffs would affect GDP growth, Goyal was circumspect. “Neither an astrologer nor an economist,” he said. “It is too early to say.”
Despite currency fluctuations worldwide, he noted the rupee had held steady. “The whole world’s currency has slumped. Rupee hasn’t slumped much,” he said, adding that India had seen “a rapid rise in the economy in the last few days.”
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