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India is not ready to allow Chinese electric vehicle maker BYD Company (BYDDY, Financials) to enter its market, Commerce Minister Piyush Goyal said during the India Global Forum on April 7, citing a mix of regulatory and geopolitical concerns. His remarks suggest a selective approach, with India welcoming global players like Tesla (TSLA, Financials) while keeping others at arm's length.
Goyal said the government remains unconvinced that BYD will comply with India's rules. As of now, it's a no for BYD, he said, adding that multiple issues are informing the decision. He emphasized that India must be cautious about which international firms it lets in.
The minister traced today's global economic challenges to China's entry into the World Trade Organization more than two decades ago. The world was convinced that China would transform and be transparent, but it closed its eyes while China's growth was fueled by unfair trade practices, Goyal said.
He clarified that his past remarks about predatory pricing and hidden subsidies had been misunderstood, but maintained that over-reliance on cheap goods has helped create the current global instability. Despite recent turmoil in global markets, he said India has held up relatively well.
Goyal defended India's 7% to 8% tariffs on U.S. imports as modest and necessary to protect domestic industries. Asked whether these would impact growth, he replied, I'm neither an astrologer nor an economist.
India, he said, is open to fair bilateral trade with countries offering a level playing field. He also pointed to India's openness to foreign tech firms like Meta Platforms (META, Financials), in contrast to China's restrictions.
He noted the rupee's stability despite widespread currency slumps and expressed confidence in India's economic position. We are in a sweet spot, he said, praising the country's leadership under Prime Minister Narendra Modi.
Goyal declined to share details on upcoming tariff decisions, saying such matters are best left behind closed doors.
This article first appeared on GuruFocus.