NEW DELHI, Jul 4: Commerce and Industry Minister Piyush Goyal on Saturday indicated that negotiations for the proposed India-Peru free trade agreement are unlikely to reach a conclusion anytime soon, citing unresolved concerns over market access in certain product categories.
Speaking to reporters on the sidelines of the 17th Toy Biz International B2B Exhibition in the national capital, Goyal said there are several areas where India is not in a position to offer Peru the level of market access it is seeking, making an early conclusion of the agreement difficult.
“There are certain concerns. There are many products where we cannot offer them market access. I do not see Peru FTA happening very soon,” the minister said, signalling that the long-pending trade pact may remain under negotiation for some more time before both sides can bridge key differences.
The proposed India-Peru trade agreement has been under discussion for several years, with negotiations having formally begun in 2017. However, despite multiple rounds of engagement, the talks have yet to produce a final breakthrough. Goyal’s latest remarks suggest that substantial gaps continue to persist, particularly on tariff concessions and access to sensitive product segments.
The minister’s comments come at a time when India is simultaneously pursuing trade negotiations with several partners as part of its broader strategy to deepen market access for Indian exporters, diversify supply chains and secure favourable terms in global commerce. While some trade talks have gained momentum in recent months, others remain complicated due to differences over tariff structures, goods access, services commitments and investment-related provisions.
On the proposed India-Canada free trade agreement, however, Goyal struck a more optimistic tone. He said the negotiations are moving in the right direction and that an Indian delegation will travel to Canada next week for the next round of discussions.
“Canada FTA is progressing well. Our team is going on Monday for the next round of negotiations. We are trying that we should conclude it in the next six months or so,” he said.
The remarks indicate that New Delhi sees stronger prospects for a trade breakthrough with Canada than with Peru at this stage. India and Canada have been attempting to revive and accelerate bilateral trade engagement after periods of diplomatic and political strain had affected the pace of talks. A successful agreement with Canada would be seen as a significant step in India’s effort to expand trade ties with advanced economies while opening new opportunities for sectors such as goods, services, investment and technology collaboration.
Goyal also outlined India’s upcoming engagement with the European Union, saying he will travel to Brussels on July 13 along with External Affairs Minister S. Jaishankar and Union Minister Ashwini Vaishnaw for the India-EU Trade and Technology Council meeting.
The minister said the objective of the meeting would be to ensure that the council’s work complements the broader India-EU free trade negotiations and helps smooth implementation issues in the future.
“Our effort is that it becomes a supplement to the FTA which we have finalized and will help us to smoothen the edges and make it easier to implement the FTA going forward,” he said.
His comments underline the importance India is placing on parallel economic and technology dialogues with key partners even as it negotiates formal trade pacts. The Trade and Technology Council format is increasingly being viewed as a platform through which India and the EU can align on digital standards, supply chain resilience, emerging technologies and regulatory cooperation alongside traditional trade discussions.
The latest remarks from Goyal provide a snapshot of India’s current trade diplomacy strategy, which involves pursuing multiple agreements simultaneously but at different speeds depending on the level of convergence with each partner. In some cases, such as Canada and the EU, the government appears keen to push toward tangible progress in the near term. In others, such as Peru, the path remains slower due to unresolved market access concerns and product-level sensitivities.
For India, free trade agreements are not merely instruments for tariff reduction; they are increasingly central to the country’s broader economic agenda of boosting exports, integrating more deeply with global value chains and strengthening its manufacturing and services competitiveness. At the same time, Indian negotiators have remained cautious in sectors where tariff cuts could affect domestic industry, farmers or strategically sensitive product categories.
That balancing act is evident in Goyal’s comments on Peru. By acknowledging that India cannot provide market access across several products, the minister effectively signalled that domestic economic considerations continue to shape the pace and direction of trade negotiations. Such concerns are common in FTA talks, especially when countries seek reciprocal tariff concessions in sectors where the other side wants to protect local producers.
The India-Peru negotiations have been part of New Delhi’s wider effort to strengthen commercial engagement with Latin America, a region seen as important for minerals, energy cooperation, agriculture and expanding export markets. Peru, in particular, holds significance due to its natural resource base and strategic location on the Pacific coast. However, trade agreements often move slowly when both countries seek concessions in overlapping sectors or where tariff reductions carry domestic political and economic costs.
By contrast, the relative optimism around the Canada negotiations suggests that both sides may be finding more common ground, or at least more political willingness, to move toward a deal. If concluded within the six-month timeline mentioned by Goyal, the India-Canada agreement could become one of the more notable trade outcomes for New Delhi in the coming year.
The Brussels visit later this month will also be closely watched, as India’s economic relationship with the EU remains one of its most strategically important external trade priorities. A stronger institutional framework through the Trade and Technology Council could help address non-tariff barriers, improve cooperation in emerging sectors and create a more stable environment for implementing any eventual trade pact.
Taken together, Goyal’s remarks suggest that India’s trade agenda remains active and multi-layered, but outcomes will continue to vary depending on the complexity of negotiations and the willingness of both sides to resolve difficult market access issues. While India-Peru FTA talks appear set for a prolonged timeline, discussions with Canada and Europe seem to be moving on a more encouraging track.
For businesses and exporters, the message is mixed but important: India remains engaged in expanding its global trade footprint, yet not all trade pacts are advancing at the same pace. The eventual shape of these agreements and the sectors they cover will matter greatly for exporters, investors and companies looking to position themselves in future cross-border supply chains.
As negotiations continue on multiple fronts, Goyal’s latest comments make clear that India will pursue trade deals where it sees strategic and economic value, but not at the cost of conceding market access in sectors it considers sensitive. That approach may slow some agreements, but it also reflects New Delhi’s increasingly calibrated and interest-driven trade policy framework.