The government is committed to ensuring industry does not face difficulties in managing the situation stemming from certain unilateral actions, commerce and industry minister Piyush Goyal said in his first public comment after the full 50% tariff that the US imposed on India became effective this week.

Efforts are ongoing to diversify exports and boost domestic demand, Goyal said Friday at an event in the national capital. He sought to allay concerns over the impact of the tariffs on the economy, saying that there is little cause for alarm as India’s share in global exports is small at 2% and it is an import-dependent nation. The minister also said talks were continuing with the US for a bilateral trade agreement.

“I would urge all of you to highlight which of your sectors have been affected; which of your sectors need alternative markets,” Goyal said at the curtain raiser event of the Bharat Buildcon exhibition, adding: “…because we, in the commerce ministry, through the missions, are reaching out to other parts of the world to look at other opportunities which we can capture.”

Efforts to support industry also include boosting domestic consumption, the minister said.

“You will soon see the Goods & Services Tax Council meeting next week, as early as next week, so that the impact of these changes (proposed to GST rates) can be felt by all of you very quickly, and that can give a big demand booster to the entire domestic manufacturing sector,” he said.

The GST Council at its next meeting on September 3-4 is expected to take up reforms to the indirect tax regime. The proposals seek to simplify the tax structure, which is expected to reduce costs for consumers, in turn boosting consumption and the economy.

The minister said various sectors have shared details on the impact on them (from tariffs) during his interactions, but no one has complained. “Koi accha FTA karna chaahe toh uske liye hum sadaiv tayyar hain. Par kisi bhi prakaar ka bhedbhaav…hum na toh kabhi jhukenge, na kamzor honge (We are always ready if someone wants to do a good FTA. However, we will neither bend nor become weak if someone discriminates),” he said, adding that India will capture new markets.

While exuding confidence that India’s exports this year will exceed last year’s, Goyal also indicated that India is not an export-dependent country. “India’s exports share in the global market is very small, we don’t need to be scared. India is an import-dependent economy,” he said. Indian industry has managed a pandemic like Covid and nuclear sanctions, he said.

“After these, if India’s GDP gets impacted by 2% and in that too, 40% items are not covered (by the tariffs). Otherwise, there are sectors such as gems & jewellery where value addition is not more than 3-5%,” he said.

Goyal also offered to import those products from African countries which are hurt by third-country actions. At the CII India-Africa Business conclave, he said India can supply motor cars and milk products to Africa and in lieu of that, Africa can provide diamonds, gold, petroleum products, agricultural products, pulses and lentils.

“Maybe some of your businesses are hurt by third-country actions, and we can import those products from you into India,” Goyal said. He also said India and Africa should look at doubling bilateral trade by 2030 from the current $82 billion and increase cooperation in areas such as critical minerals, agriculture, technology and manufacturing.

FTA, support measures
Goyal said a free trade agreement with Oman will be finalised soon and Qatar and Saudi Arabia also want to do trade agreements with India. Talks with the European Union for an FTA are moving at a fast pace, the minister said. Commerce secretary Sunil Barthwal is going to the EU and their minister and officials would be visiting India after that, he said. “We want to do a second tranche of FTA with Australia. Talks with New Zealand, Chile and Peru are going on fast pace,” he said.