Commerce and Industry Minister Piyush Goyal on Saturday said India’s fuel supplies remain stable despite disruptions caused by the ongoing conflict, while reiterating the government’s commitment to trade negotiations with the United States.
“Given our robust reserves of 12 months equivalence, I don’t see anyone needing to panic. Rupee will also bounce back gradually,” Goyal said in a Fireside Chat at the 21st Edition of CNBC-TV18 India Business Leader Awards.
He noted that India remains well placed on crude supplies, with no disruption in the availability of key fuels. “When there is a war, there will be challenges. But we are well placed with respect to crude. There is no disturbance on fuels like petrol, diesel and ATF,” he said.
As a precautionary step, the government has ramped up kerosene supply to manage any potential shortfall in LPG availability. “People should not hoard gas cylinders. It is a supply-demand time issue, not an issue of availability,” he added.
The minister said India is also diversifying energy imports beyond the Middle East, sourcing supplies from more distant locations such as Canada, the United States and Russia, which increases shipping time but improves supply security.
Govt engaging exporters amid disruptions
Goyal said the government is closely engaging with exporters as supply chains face disruptions due to the conflict. “We are in dialogue with all our stakeholders and engaging with all export promotion councils every day,” he said.
The commerce ministry is also working on standard operating procedures (SOPs) to support exporters in case shipments need to be returned or rerouted.
“We are constantly coming up with SOPs to help any cargo that needs to come back,” he said.
The government is also considering insurance support for exporters in case of delays in cargo movement. He added that the government would come out with a concrete agenda to support exporters by next week.
Trade agreements and negotiations
On trade policy, Goyal reiterated India’s commitment to negotiations with the United States. “We stand by the US BTA. Teams are in continuous negotiations and we are seeking preferential access with respect to competitors,” he said.
He also highlighted India’s expanding network of trade agreements.
According to Goyal, nine free trade agreements signed in the past three-and-a-half years cover 38 economies, giving India preferential access to a large share of global trade.
Negotiations are currently underway with Israel and Gulf Cooperation Council countries, while discussions are ongoing with Chile and Peru. Engagement with Mexico is also expected to begin later this year.
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At the same time, Goyal said some of India’s earlier trade agreements have had adverse effects.
“Japan, Korea and ASEAN FTAs have all hurt India,” he said, adding that the government has started renegotiating the agreement with South Korea to achieve a more balanced outcome.
He also stressed that India has been able to secure several trade arrangements while protecting sensitive sectors.
“India is the only country in the world to get FTAs with the EU, US, UK, Australia and New Zealand without opening our dairy sector,” he said.