India continues to be bright spot of world despite challenges: Piyush Goyal

Commerce and Industry Minister Piyush Goyal affirmed that the Indian government prioritizes favorable terms for the country while entering into free trade agreements (FTAs) or bilateral investment treaties (BITs). Despite global economic uncertainties impacting foreign direct investment (FDI), Goyal expressed confidence that India will remain an attractive destination for overseas players.

In a post-budget interaction with PTI, Goyal emphasized that during negotiations for FTAs or BITs, the government ensures that the terms are in the best interest of India. Finance Minister Nirmala Sitharaman, in her budget speech, highlighted India's approach to negotiating BITs with other countries with a focus on 'first develop India.'

Acknowledging the complexities and challenges in global geopolitics, Goyal stated that the ongoing global uncertainty has affected FDI, especially considering the spike in interest rates in the US and other developed nations. Despite the reverse flow of capital towards developed economies, Goyal expressed confidence that India remains an "oasis of stability" with its aspirational population and other positive factors.

Addressing concerns about the impact of global uncertainties on India's growth, Goyal asserted, "I do believe" that India's stability, coupled with its aspirational population, will ensure the country continues to be the bright spot on the global stage.

Responding to queries about the extension of tax incentives for startups, Goyal explained that the government's objective is to encourage and support the startup ecosystem in the country. Additionally, he commended Finance Minister Sitharaman for refraining from making changes to tax rates or import duties, noting the importance of maintaining stability in these areas.

Sitharaman had earlier stated that there would be no alterations to tax rates for direct and indirect taxes, including import duties. Goyal appreciated this decision, emphasizing the avoidance of the temptation to introduce sops or tinker with rates for short-term gains. The government's commitment to stability and a favorable business environment reinforces its vision for India's continued growth amid global economic challenges.