Exports impacted by one nation’s actions not big enough to hurt Indian GDP story: Piyush Goyal

Commerce and Industry Minister Piyush Goyal on Thursday downplayed the impact of US tariffs on India’s economy, saying that external trade shocks would not dent the country’s growth trajectory.

Speaking to News18 Editor-in-Chief Rahul Joshi in an exclusive interview, Goyal said India’s economy was largely driven by domestic demand with exports forming only a relatively small part of the overall GDP.

“The Indian economy is a very complex economy and therefore I do not think that the impact on the GDP will be significant,” he said.

The minister pointed out that India’s exports to the US between April and August had already crossed $40–43 billion, against $86 billion for the entire last fiscal year. “We still have seven months to go. The reciprocal tariffs are not across the board, they are only on 55–60% of exports,” he said.

Goyal also said that new markets were opening up as US trade actions extended to several other countries. “This opens up trade with many nations. We are looking at 50 countries where we have trade compatibility,” he added.

Reflecting on the COVID-19 period, Goyal recalled that India had posted a trade surplus as imports fell more than exports, highlighting the resilience of the economy. He added that domestic consumption, particularly with the expected boost from GST 2.0, would help cushion exporters who may face losses from tariffs.

Expressing confidence in India’s trade prospects, Goyal said he was “very confident exports this year will be higher than the last.” He also urged citizens to support the economy by committing to ‘Swadeshi’ and ‘Made in India’ products.

“Whatever may have happened in the past is fine, but at least in the future, let’s all go for Swadesh,” he appealed.

The minister also underlined that New Delhi continues to hope for progress on a trade deal with Washington, adding that both sides recognise the long-term importance of a strong economic partnership.

“The US-India relationship is one of the most consultative partnerships, built on mutual trust and shared values. Although we have faced certain challenges, I believe these situations will pass, and the relationship will only grow stronger.”

“We will continue to work towards finding solutions and aim to reach an outcome within a few months.”

“While some comments may cause temporary concerns, the India-US friendship is much stronger than a few isolated remarks. Any measure that harms our farmers or fishermen is unacceptable. We will never compromise on the interests of our farmers, fishermen, or the nation,” he added.