Trade strategy: Piyush Goyal says India Inc in ‘cosy comfort zone’ of 1.4 bn people market, urges global push amid US tariffs

Union commerce minister Piyush Goyal said Indian businesses are in a “cosy comfort zone” created by the vast 1.4 billion-person strong domestic market and need to actively explore opportunities abroad.Speaking at an industry event in Mumbai, Goyal said companies should not get carried away by any “negative narrative”, emphasising that the economy grew 7.8% in June. He added that the performance is a “resounding response” to naysayers, including opposition leader Rahul Gandhi, certain economists and sections of the media.On the impact of high US tariffs on Indian exports, Goyal told PTI that over $46 billion of the $87 billion worth of exports to America remain unaffected. “India is full of resilience, confidence and is raring to continue to be the fastest growing economy for the next 22 years. Our exports will continue to grow, we will do higher exports this year than last year and the future is extremely bright,” he said.He acknowledged that the domestic market remains a big growth driver but cautioned that Indian companies are missing out on global value addition. “I often feel the large 1.4 billion domestic market has become somewhat a cosy comfort zone in which our businesses make good profit and don’t venture out to look at opportunities around the world,” he said.Citing examples, Goyal pointed out that India exports rice but not rice puffs or ready-to-eat products, and iron ore but not high-quality steel. He also noted the weak presence of Indian clothing in global high-street fashion, and urged companies to brand India differently.Goyal stressed that the government is ready to support businesses in tackling challenges. “Ask for help. Give us your support. Don’t lose out this opportunity. Put pressure on us,” he urged captains of industry.On the US tariff move, Goyal said President Donald Trump’s decision to impose a 50% tariff on several Indian goods should not deter exporters. He acknowledged challenges in sectors such as textiles, apparel, gems and jewellery, shrimp, and leather, but called for higher value addition to offset the impact.Goyal said he spoke with industrialist Noel Tata, who runs the Zudio and Westside chains, and suggested that US tariff-hit products could be sold in the domestic market at discounted rates until alternative export destinations are found.The minister also pointed to trade agreements under negotiation to diversify India’s export markets and called the 7.8% GDP growth a “morale booster”. He expressed hope that upcoming decisions from the GST Council would further spur demand.Meanwhile, UAE minister for foreign trade Thani bin Ahmed Al Zeyoudi said at the same event that India and the Gulf nation will remain close partners regardless of changes in global trade dynamics. “No matter how the world and the partners are dealing with each other, and they’re changing their policies and changing their position against each other, the UAE and India will always be together,” he said.