India’s confidence is high and its exports in the current financial year will surpass last year’s level, despite the high US tariffs, commerce and industry minister Piyush Goyal said Friday.
“This is India’s time. This country will not bow to anyone,” the minister said when asked about the 50% additional tariff imposed by the US on India, at an event organised by Business Today.
India will find opportunity in crisis, says Goyal
He said India would find opportunities in crisis. “The nation’s morale is high…There is a lot of strength in the Indian economy…India will emerge as the winner (in any kind of crisis),” he said.
In the last financial year India’s overall exports – goods and services combined – reached a record US$824.9 billion in the financial year 2024-25, marking a 6.01% increase compared to the previous year. Of the total merchandise exports were $ 437.4 billion and the contribution of the US to the total was $ 86.4 billion.
According to GTRI estimated with the additional tariffs of 50% the exports to the US will decline by 40% this financial year.
India won’t retreat from global trade realignment
On the recent trade war inaugurated by US President Donald Trump and the dislocation it might cause in world trade, Goyal said that the world keeps evolving and international trade keeps finding new pathways. “What we are seeing is a churn that is bound to happen every few years. Every few years, new countries come up, some countries go down and this is part of the history of nations,” he added.
He also said despite the churn in global trade there is no retreat from globalisation. “ I see the countries restructuring their trade routes and their trade partners.”
The minister said that the world wants to work with India. “We are in dialogue with many other countries including Oman, European Union, US, Chile, Peru, New Zealand (for trade agreements). Many others want to start engaging with India.”
“So today the world recognises the strengths of India, recognises our demographic advantages…1.4 billion people bring aggregate demand, huge domestic market…why else do you think everybody is vying to do trade or have better market access (in India),” he said.
The commerce minister said that India has recently inked trade agreements with countries including UAE, Mauritius, Australia, EFTA (European Free Trade Area) and the UK.
He added that the Indian economy is growing at a faster pace and the whole world is looking up to India.
“The whole world recognises us as the fastest growing large economy. We are contributing 16 per cent in global growth, our inflation is amongst the lowest in the world compared to other emerging market economies…our macroeconomic fundamentals are the best,” Goyal said adding “India today is stronger, much more confident, much more respected”. His remarks came in response to a question on Trump’s remarks terming India as a dead economy.