Union Commerce and Industry Minister Piyush Goyal on Thursday criticised sections of the Indian industry for resisting limited import exposure while seeking wider access to overseas markets.
“Sometimes, your industry demonstrates so much weakness that even a minor quota of one or two, three per cent of our consumption in India leads to resistance. I feel very disappointed when that happens,” he said at an industry event. Goyal expressed disappointment over domestic manufacturers’ objections to small import quotas during trade negotiations
The minister described this stance as inconsistent, noting that the same industries advocating open markets abroad were unwilling to accept limited competition at home. “When I try to understand how two or three per cent imports hurt the domestic market, I receive unconvincing responses,” he added.
Trade Talks With The US, EU
The remarks come as India continues negotiations for Free Trade Agreements (FTAs) with developed economies, including the United States and the European Union. An Indian delegation is currently in Washington for talks scheduled until 17 October 2025.
The proposed India–US trade pact aims to double bilateral trade to $500 billion by 2030 from the present USD 191 billion. Discussions with the European Union are also in advanced stages, following the 14th round of negotiations held from 6–10 October in Brussels. The Commerce Secretary recently indicated that the agreement could be concluded by the end of 2025.
Goyal urged domestic manufacturers to align their interests with India’s broader trade objectives. “When we pursue FTAs, we need collective support. We cannot expect open markets abroad while closing our own,” he said.
Previous Criticism
The minister has repeatedly urged Indian companies to strengthen competitiveness and move beyond dependence on the domestic market. In August–September 2025, Goyal remarked that many businesses remained in a “comfort zone”, focusing on domestic sales rather than exports or value-added production.
In April 2025, he had underscored the need for innovation-led growth, pointing out that India continued to export raw materials instead of finished goods. He also questioned industries for preferring cheaper imports over domestic alternatives, despite championing the ‘Make in India’ initiative.
At Thursday’s event, Goyal highlighted the importance of supply chain diversification to reduce dependency on limited sources. “We should not be vulnerable to disruptions from any single geography,” he said. The minister added that while certain sectors may require temporary protection, others must remain integrated with global markets to enhance efficiency.
India has signed FTAs with the UAE, Australia, and the UK in recent years, while the India–EFTA agreement came into effect on 1 October 2025. The United States remained India’s largest trading partner in 2024–25, with bilateral trade worth $131.84 billion, accounting for around 18 per cent of India’s total goods exports. |
