Union commerce 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, 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."

In a separate event at the India Global Forum in Mumbai, Goyal said India’s "applied tariffs" to the US are only 7-8%. "Our applied tariff to the United States is probably 7% or 8%. It's not humongous," he said. The minister criticised China, stating that its unjust practices have led the world to this point. Goyal also made it clear that the entry of car manufacturer BYD into India is not welcome at this time.

The Union minister clarified that India's tariffs act as a defence against countries engaging in practices such as dumping.

These comments come days after the US imposed a 26% reciprocal tariff on India. According to India Ratings and Research (Ind-Ra), the direct impact of reciprocal tariffs on India is likely to be limited, the second order impact of excess supply into India due to the regional imbalances created by the US reciprocal tariffs could be seen on realisations in sectors such as chemicals, textile, steel and industrial machinery. “The uncertainty on eventual tariffs and the slowing global growth are likely to keep corporates cautious on their investment plans even if there are short-term opportunities,” it said.

The minister’s comments on ‘economic nationalism’ 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.

The minister revealed that the European Free Trade Association (Switzerland, Norway, Liechtenstein, and Iceland) has committed to bringing technology and investing $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, 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.

"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 said.