India won’t allow transshipment of goods to other regions: Piyush Goyal

By Admin

26 Apr, 2025

India Tightens Controls on Trade Practices

In a strong message to the industry and international trading partners, Commerce and Industry Minister Piyush Goyal announced that India will not tolerate irregular practices or allow trans-shipment of goods through its soil to other regions. Speaking at an industry event, Goyal emphasized the need to protect India's integrity in global trade, making it clear that the country will not serve as a backdoor for breaking rules of origin.

“At no point of time, will we allow India to become a route for trans-shipment for breaking the rules of origin, so that other countries bring material into India, maybe do a little bit of processing and supply it to a third country, calling it a made-in-India product,” Goyal firmly stated. He urged India Inc to remain vigilant against any such practices.

Context: US Concerns Over Transshipment

Although Goyal did not specifically name any country, his remarks came shortly after US Vice-President JD Vance’s comments earlier in the week. Vance noted that the United States seeks trade partners based on "fairness" and does not want allies to act as "conduits" for trans-shipping goods from other countries. Given that the US is India's largest trade partner, and both nations are preparing to launch negotiations for an early phase of a trade deal, Goyal’s statement holds particular significance.

Protecting the Domestic Steel Industry

Highlighting another important sector, Goyal mentioned the steps taken by the government to safeguard the domestic steel industry from unfair practices. To curb the import of dumped or low-quality steel at irrational prices, the government has imposed a 12% safeguard duty on steel imports for 200 days. However, the minister cautioned the industry not to rely excessively on imports and to prioritize Indian suppliers.

“…wherever you see an Indian supply, you will give preference and not conveniently import your requirements to the detriment of some other Indian company or manufacturer,” Goyal said. He stressed that industries must understand their duty to support the local supply chain, equating it to the same protection they seek from dumping practices.

“It’s a wake-up call. (Just) Like you need protection from dumping, or protection from low-quality steels being imported into the country at irrational prices, you have a duty and obligation to support your supply chain. I hope this message goes down deep, not only to the steel industry, but to everybody across the country,” he added.

Expanding Market Access through FTAs

Goyal also shed light on India’s ongoing efforts to secure better market access for its steel sector through various Free Trade Agreement (FTA) negotiations. He mentioned that India is actively working on 10-12 FTAs, including with the European Union (EU), which would open opportunities across 27 countries in one block.

Apart from the EU and the US, India is currently negotiating trade deals with countries such as the United Kingdom (UK), New Zealand, Peru, Chile, and Oman. Additionally, discussions for potential trade agreements with Bahrain, Qatar, and the Gulf Cooperation Council (GCC) are underway.

Conclusion

Minister Piyush Goyal’s recent statements reaffirm India's commitment to fair trade practices, protection of domestic industries, and strategic market expansion. As India strengthens its global trade relationships, it remains focused on ensuring that its economic growth is built on principles of integrity, quality, and mutual fairness.