India must stand united against global trade shocks, says Piyush Goyal

New Delhi: India must rely on its resilience and collective resolve to navigate rising global trade disruptions, commerce and industry minister Piyush Goyal said on Monday. Speaking at an event in New Delhi, the Union minister said that dependence on imports leaves businesses vulnerable, and called for greater innovation and a focus on Made in India products, in line with Prime Minister Narendra Modi’s Independence Day appeal.

Though Goyal did not name any country, his comments came against the backdrop of recent curbs that have disrupted Indian trade and industry. China suddenly restricted exports of specialized fertilizers and rare earth magnets, affecting Indian agriculture and automobile manufacturing, while the US imposed steep 50% tariff hikes on most Indian goods, crippling shipments to its largest market.

In the case of specialized fertilizers and rare earth magnets, China allowed exports to resume following its finance minister’s recent visit to New Delhi. For the US, however, the tariffs have been in effect since 27 August, and the sixth round of proposed talks for a bilateral trade agreement (BTA) remains on hold, with no clarity on when negotiations will restart. Exporters fear that the prolonged tariff regime could lead to billions of dollars in losses and job cuts in labour-intensive sectors.

Goyal said that such developments underline the importance of self-reliance, warning that sudden restrictions on critical inputs could pose risks to businesses. He further said that India’s strength lies in trade and the micro, small and medium enterprises (MSMEs) sector, which has helped the economy move from being part of the fragile five to one of the world’s top five. “Our self-confidence is so strong that it will only grow stronger and will not bow in front of anyone,” he said.

Citing the growth of engineering exports to $116 billion today from $10 million in 1955, Goyal expressed confidence that the sector would continue to aim higher. Industry representatives at the event said the minister’s remarks resonated with them, especially at a time when exporters are facing supply chain disruptions and steep duties in their biggest overseas market.

With the steep US tariff now in effect, India’s engineering goods exports, which reached $19.16 billion in FY25, an 8.7% increase from $17.63 billion in FY24, face heightened risk in their largest market.

Emphasising the importance of quality and sustainability, Goyal reiterated India’s commitment to the “Zero Defect, Zero Effect” motto, saying the world considers India a trusted partner and that maintaining that reputation is essential. He noted that India has consistently ranked among the top three globally in sustainability efforts, reflecting its responsibility towards the environment under its Paris climate commitments.

Highlighting the economy’s trajectory, Goyal said, “India had been the fastest growing economy for the past four years and recorded 7.8% GDP growth in the last quarter,” which he described as a record. He attributed the momentum to reforms such as goods and services tax (GST) rate cuts and simplification, which he said had boosted domestic demand, created jobs, and increased incomes. However, he stressed that the benefits of GST reductions must be fully passed on to consumers to ensure equitable growth.