Indian companies need to leverage global trade opportunities created through various free trade agreements (FTAs) to attract investments and boost exports. Otherwise, there is a risk of a surge in imports without fully benefiting from open markets, Commerce and Industry Minister Piyush Goyal said on Monday.
Addressing the ASSOCHAM India Business Reform Summit, Goyal said, “Unless businesses encash the opportunity for inviting investments and promoting exports, you can very well end up with a situation where more imports come in and we don't take the benefit of the open markets.”
The minister also clarified that certain imports essential for economic expansion should not be viewed negatively, and India should not be concerned about importing productive inputs.
“If we need data centres, we will need to import them, at least at present. If we need high-quality precision capital goods, we will need to import them. They are the enablers for the India growth story,” he said.
He highlighted that the growth of more than 1,800 Global Capability Centres (GCCs) in India has generated nearly two million direct jobs and 10 million indirect jobs.
Goyal further said Indian industries need to focus on converting trade opportunities into higher exports, especially in value-added sectors rather than raw materials. He urged sectors such as automobiles and auto components, electronics, consumer goods and agro-based products to expand their export footprint.
The remarks come at a time when exporters are grappling with elevated freight costs and volatile commodity prices due to the West Asia crisis. Goyal, however, said India should treat the evolving global situation as an opportunity to strengthen domestic capabilities and resilience, emphasising the need for a strategic response.
“Whenever the times are tough, that's when the best comes out of all of us,” he said. “We will convert the current situation and the risks associated with geopolitics around the world into an opportunity for faster reform, preparing ourselves for greater resilience, making our supply chains stronger and using every bit of opportunity that the world provides.”