Union Commerce and Industry Minister Piyush Goyal on Monday called on Indian businesses to embrace "economic nationalism" by supporting domestic suppliers rather than opting for marginally cheaper imports.
Speaking at FICCI's 98th Foundation Day celebrations in Mumbai, Minister Goyal invoked Mahatma Gandhi's nationalist ethos, urging India's industrial leaders to prioritise domestic value chains even when foreign alternatives appear more economical in the short term. He cited examples of Japan and Korea, where, despite free trade agreements, domestic industries consistently support local suppliers as a matter of "collective conscience."
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"The Minister's comments come as India positions itself as a viable manufacturing alternative amidst shifting global trade patterns. He emphasised that despite geopolitical volatility, India presents an attractive proposition with its rule of law, non-discrimination policies, and domestic market of 1.4 billion consumers," as per an official release.
The minister revealed that the European Free Trade Association (Switzerland, Norway, Liechtenstein, and Iceland) has committed to bringing technology and investing USD 100 billion in India. He also highlighted progress on trade agreements with Australia, EU, UK, US, Chile, and Peru. He urged the domestic industry to leverage FTAs.
India is progressing toward becoming the world's third-largest economy, coinciding with FICCI's upcoming centenary, Goyal noted, adding that the country's growing role in Global Capability Centers, with over 1,700 now operating in India, with significant expansion plans.
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"Let's all collectively resolve that in the next few years, we'll be investing in taking India to the world. We'll be investing in making India the best in the world," Goyal concluded.
Minister Piyush Goyal also felicitated FICCI's past presidents during the ceremony, in which FICCI President Harsha Vardhan Agarwal reflected on FICCI's history and highlighted the organisation's pioneering initiatives: "Since its inception in 1927, FICCI has been at the forefront of shaping India's economic and industrial landscape. FICCI anticipated industry's needs long before they became national priorities."
He added, "Today's ceremony is more than a celebration of achievements and ambitions. It is one large family gathering. Seeing the descendants of our past who were pioneers and nation builders is a powerful reminder of the legacy we carry forward."
The ceremony brought together descendants of past presidents and current industry leaders in what Agarwal described as "a family gathering" to honour "some of the greatest business leaders India has produced."
Harsh Pati Singhania, Past President of FICCI and Chairman and Managing Director of JK Paper, highlighted the organisation's historical roots in economic nationalism: "FICCI championed the cause of economic nationalism by advocating policies that could strengthen industry, trade and build self-reliance. We have been supporting the spirit of Atmanirbhar Bharat right from the outset."
The event also featured Senior Vice President of FICCI and Vice Chairman of RPG Group, Anant Goenka, who acknowledged the minister's inputs, adding "we will certainly take home messages which you shared of Prime Minister focus on skills, scale and speed."
Jyoti Vij, Director General of FICCI, said, "It is an honour to felicitate our Past Presidents and commemorate their pivotal role in India's economic rise. As we stride towards FICCI's centenary in 2027, we tend to uphold the governance values of our Past Presidents as we advance towards a Viksit Bharat."
A highlight of the programme was a fireside chat with global business advisor Dr Ram Charan on "New Global Disorder: Technology, Trade & Disruptions," addressing policy uncertainty, shifting trade paradigms, and geopolitical tensions affecting international commerce.
"The Foundation Day also commemorates Mahatma Gandhi's historic address at FICCI's fourth Annual General Meeting on 7 April 1931, where he articulated his vision of business as a service to society," the release added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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The US decision to impose a 26 per cent reciprocal tariff on India could lead to a decline of $5.76 billion, translating into a 6.41 per cent contraction in exports to Washington in 2025, the Global Trade Research Initiative (GTRI) said on Monday.
The contraction will be led by a drop in exports of fish and crustaceans, which may fall by a fifth. Exports of iron and steel products may decline by 18 per cent; diamonds, gold, and related products by 15.3 per cent; vehicles and parts by 12.1 per cent; and electrical, telecommunications, and electronic products by 12 per cent, according to GTRI’s report. In 2024, India exported $89.81 billion worth of goods to the US.
On April 2, US President Donald Trump signed an executive order introducing new reciprocal tariffs, imposing additional ad valorem duties ranging from 10-50 per cent on imports from a host of countries. The baseline 10 per cent duty took effect on Saturday, with additional country-specific duties coming into force from April 9.
Commerce and Industry Minister Piyush Goyal is also expected to meet industry representatives and exporters to take stock of the issues faced by Indian exporters due to the reciprocal tariffs imposed by Washington.
Other categories expected to contract include plastics (9.4 per cent), carpets (6.3 per cent), petroleum products (5.2 per cent), organic chemicals (2.2 per cent), and machinery (2 per cent).
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However, India’s competitive position in select product segments may help cushion some of the losses. Sectors that could see modest gains include made-up textile, apparel, ceramic products, inorganic chemical, and pharmaceutical.
Certain product categories such as petroleum, solar panels, and pharmaceuticals have been exempted from reciprocal tariffs. These items account for $20.4 billion, or 22.7 per cent of India’s exports to the US. Similarly, Washington has already imposed an additional 25 per cent duty on steel, aluminium, automobiles, and automobile parts. These represent $2.2 billion, or 2.5 per cent of India’s total exports to America.
“However, the largest impact falls on the remaining basket of goods. These exports, valued at $67.2 billion or 74.8 per cent of total trade, will now be hit with a 26 per cent tariff. While Most Favoured Nation tariffs still apply, this sweeping hike is expected to reshape trade dynamics across a wide range of industries,” the report said.
Exports of electronics and smartphones to the US stood at $14.4 billion in 2024, accounting for 35.8 per cent of India’s global shipments in this category.
While the average import duty on these products is just 0.4 per cent, Indian goods are now set to face a steep tariff, raising concerns about their competitiveness in the American market, it said. India is currently the fourth-largest supplier of electronics and smartphones to the US, behind China, Mexico, and Vietnam.
“We estimate that the impact of the tariff hike (on electronics and smartphones) could reduce India’s exports to the US by 12 per cent, or roughly $1.78 billion,” it said.
Seafood exports may also be hit hard. “These products, which previously entered duty-free, now face a 26 per cent tariff. India, the third-largest seafood supplier to the US after Canada and Chile, is projected to lose ground. Exports are expected to fall by 20.2 per cent, or $404.3 million, especially as Canadian products remain tariff-free under the US-Mexico-Canada Agreement,” it said.
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