India cautious about signing FTAs to avoid dumping of subsidised goods: Jaishankar

“India is the fastest growing economy which world leaders have observed. Many countries are eager to do a free trade agreement with India but we are cautious as through FTA we don’t want subsidised goods dumped in India. We have done FTA with Australia, UAE and four European countries. We have done mobility agreements in the past two years in different sectors. We have made agreements with Germany, France, Portugal, Austria, Italy, Australia and Japan,” he said at the Surat event.

In a discussion with the EAM, Surat Diamond Bourse member Dinesh Navadia raised the issue about the G7 countries and the EU imposing a ban on diamonds sourced from Russian mines in protest against the war it waged on Ukraine.

India imports 40 per cent of rough diamonds from Russia. Many small and middle-sized factories have been affected due to a shortage in the supply of rough diamonds in Surat.
In response, Jaishankar said, “We have put up the issues before the European Union and G7 nations and have requested them not to destabilise the diamond trade of India. The European Union has moved quite far ahead in sanctioning policy and sanction on diamonds came later. During the pandemic, the world faced one major issue — there were fewer supply lines but the source was single. If something happens in the main source — like an accident or sanctions — then the entire chain gets disturbed. We have diversified the markets, and we do see the opportunities in Dubai which has huge markets of diamonds and jewellery.”

Federation of Indian Art Silk Weaving Industry chairman Bharatbhai Gandhi asked about the future of WTO (World Trade Organisation) and the dumping of Chinese goods in India.

The foreign minister replied, “WTO faces different types of challenges like dumping of subsidised goods. We should never leave the ground and WTO, as it is, is the best business place. We have to work in the direction where we can protect our rights. There are many ways to raise the business. Those days have gone where people were following WTO rules, and presently we can say that it has become free for all.” On a question by a solar panel manufacturer from Surat from Chetan Shah about how the Minister sees India’s relations with China given that the neighbouring country has played a major influence on Indian industry in terms of technology, equipment, Jaishankar said, “An abnormality has come up in our relation due to the tension in the international borders. We are quite clear on this issue that unless there is no peace and stability on the international borders, till then the relations will remain as per status quo.”

While talking about Pakistan, he said, “Pakistan is our neighbouring country, but we will never compromise on the lines of terrorism. The best answer to terrorism is counter-terrorism.”

In his address before the open house, Jaishankar said, “ In 2016, Prime Minister Narendra Modi visited the UAE… before that it was PM Indira Gandhi who had visited the UAE. In the interim period, no Prine Minister of India had visited the UAE. If we give importance to them and pay visits, their thinking about us will change.” He also said that India had become a member of QUAD (Quadrilateral Security Dialogue) which comprises countries USA, Japan and Australia. “These countries believe that India is a unique non-replaceable partner,” he asserted.