Only 2% of GDP is vulnerable to tariff impact, no need for India to cower: Piyush Goyal

Reacting strongly to the foreboding narrative surrounding the impact of being under the hammer of 50% punitive tariffs by the Trump administration, Union Minister of Commerce Piyush Goyal said that only 2% of India’s GDP will be somewhat impacted, which should not cause Indians to cower and get bullied.

“Our share in the global export market is so less that we have no cause for fear,” Goyal said at the curtain raiser event of Bharat Buildcon. He also reminded that India is an import-dependent economy. He recounted to the congregation the situation during the Covid-19 pandemic, when India’s industry faced an unprecedented crisis like the pandemic with immense fortitude. “We have managed nuclear sanctions in the past as well.”

Goyal has recently been interacting with delegations across various sectors, where they have all explained how the punitive tariffs will impact them. “But not even a single sector came to me lamenting. Every delegation comes to me and requests that I give PM the message that we stand in support of you,” he said.

Goyal also expressed confidence in the country’s unity in the face of tariff-induced uncertainty. “The entire country will stand united, and with all the strength India can muster, will move forward rapidly. India will scale new heights,” he said. India is always open to a favourable free trade agreement, Goyal said. Still, attempts at discrimination or indignation will not weaken India’s resolve and self-respect, and India will not cower to such attempts. “We will prosper together, capture new markets. I can assure you that India’s exports this year will surpass last year’s exports,” Goyal said, amid rapturous applause.

The FTAs that India has signed are all with developed nations, Goyal said. “We have signed FTAs with Australia, the UAE, EFTA, and the UK. We are in advanced talks with the EU. The Commerce Secretary is headed for deliberations. An EU delegation is coming to India next week. Their minister will come after that,” he revealed, driving home the point that the world knows that the Indian economy is an emerging economy where opportunities abound, and will grow manifold in the future.