‘We often balance trade with non-trade issues’: Piyush Goyal on India’s approach to trade deals

In negotiations for trade deals, the Narendra Modi government has often balanced trade with non-trade issues, such as securing investment pledges from European Free Trade Association (Efta) and New Zealand in exchange of market access and resolving the issue of double social security contributions with the United Kingdom, Union trade minister Piyush Goyal has said.

In an interview at Raisina Dialogue 2026, Goyal outlined the Modi government's approach to trade policy and negotiations with other countries.

In a break from the past practises, Goyal said the government prefers trade deals with developed countries, so they complement India instead of competing. He dubbed such deals as a win-win affair and cited the case of the India-EU trade deal where Indian consumers are benefitted, Indian industries are not threatened, and European industries, such as German carmakers, are also benefitted.

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"Which European car at $50,000 can compete in the Indian market? But, if initially, they can sell, say 5,000 cars or 10,000 cars, test the market, find there's traction, there's demand, and then come and manufacture here, we are better off for it and they are better off for it. So, our approach is add to the competition in areas which are high-tech and where we can benefit as a nation, create more jobs as a nation, bring innovation to India, produce at scale in India not only for the Indian market, which is big, but, from India, help them sell to Africa, help them sell to Latin America, and help them sell in Asia," said Goyal.

As for balancing trade with non-trade issues, Goyal cited trade deals with Efta, New Zealand, and the EU. He said that he considered one simple question while negotiating those deals: What is India really going to get for opening its market in these deals because Indians goods already had access to those markets?

Under such a policy, India secured investment pledges from Efta and New Zealand and resolved the negotiate a reciprocal Double Contributions Convention (DCC) with the UK to eliminate double social security contributions of employees on temporary overseas assignments, Goyal said.

India signed a trade deal with Efta, an economic and trade bloc comprising Iceland, Liechtenstein, Norway, and Switzerland, in 2024. The deal involves Efta members investing $100 billion in India over the next 15 years in exchange for market access.

Similarly, under the trade deal with New Zealand, the country pledged to invest $20 billion over the next 15 years in exchange for market access.

"In the last 25 years, New Zealand has only invested $70 million. In the next 15 years, they have committed to invest —it's a legally binding commitment— $20 billion. That's about 300 times more than what they've done in the last 25," said Goyal.