Balance of payments to be 'very, very strong' this year, says Piyush Goyal

New Delhi: India's balance of payments this year is going to be "very very strong" on the back of significant improvement in exports and a fall in imports, Commerce and Industry Minister Piyush Goyal said on Monday. He said that "good" green shoots are visible in the economy and exports have shown a "good" turnaround.

"We are in July at about 91 per cent export level of July 2019 figures. Imports are still at about 70-71 per cent level of July 2019. So, broadly our balance of payments this year is going to be very very strong, which is why we feel confident that Indian industry will see opportunities for themselves, will see opportunities of growth," he said at a Ficci webinar.

India's exports fell for the fourth straight month in June as shipments of key segments like petroleum and textiles declined but the country's trade turned surplus for the first time in 18 years as imports dropped by a steeper 47.59 per cent.

The country posted a trade surplus of $0.79 billion in June. Goyal said that the government is taking steps to support and promote domestic manufacturing and industry.

"We shall ensure that any unfair treatment meted out to Indian industry across the world will be taken up at the highest levels on your (domestic industry) behalf," he said. He also said that some people are criticising the government's move to promote and support domestic industry by imposing certain restrictions on some products.

Earlier those people used to ask for steps to support domestic industry as businesses cannot compete with those countries which are following unfair trade practices or are providing hidden subsidies. "But when you do the necessary enablement to support domestic manufacturers and industry, you find some voices trying to give you 'gyan', trying to be prophetic...saying no this is going back to the 1990s, you are going back to the license raj. It shocks me, when people do not understand as this is not business among equals," the minister said.

India has recently imposed import curbs on products like television sets and tyres. Citing examples of tyres, he said it should not be the case that some country in the world does not provide access to Indian tyres, but wants to export this item to India freely. Similarly, "how can it be that my medicines cannot go to another country but they want their products to be sold in India. The world works with equal terms, there have to be equal, fair and reciprocal arrangements," he said.

"If other countries are desirous of the 1.3 billion Indian market opportunity, they want to provide services to meet our needs, they also have to give our businesses equal opportunity to engage with them. They cannot put over arching technical barriers or overarching regulations," he added.