India plans to wrap up FTAs with the Gulf Cooperation Council and with Israel once tensions in the region subside. Addressing the Automotive Component Manufacturers Association of India's annual session on Wednesday, Piyush Goyal said the deals will be concluded "as soon as things stabilize over there." The GCC bloc includes Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain.
Goyal's update comes as Prime Minister Narendra Modi's government works to speed up trade talks with big partners. Over the past year, India struck a trade deal with the UK that began in July, and it also reached agreements with the European Union, Oman and New Zealand. Negotiations with the US have been lengthy.
Separately, during Modi's February trip to Jerusalem, India and Israel agreed to bring their trade talks to a close soon. That came just before the US and Israel carried out strikes on Iran, after which a conflict erupted and snarled supply chains across the globe. With India importing nearly 90% of its crude oil, the fallout has been particularly acute at home.
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Goyal said India is exploring similar arrangements with other countries "to get more access to critical minerals" and ensure "resilient supply chains." He added that the US and India are collaborating as partners on critical minerals. According to Goyal, Washington started the Pax Silica initiative with the aim that "like-minded, democratic, well-meaning, and fair-play countries can work together to ensure that no single geography can weaponize trade."
US Ambassador Sergio Gor noted that India was one of the earliest countries asked to join Pax Silica, explaining, "because we trust India. It is because we want to work with India."
