Mumbai, 7th April 2024
Piyush Goyal, India’s Commerce and Industry Minister, has urged Indian businesses to practice “economic nationalism” by preferring domestic suppliers over slightly cheaper imports. During his speech at FICCI’s 98th Foundation Day in Mumbai, he emphasized the importance of prioritizing domestic value chains, drawing parallels to Japan and Korea, where local industries consistently support homegrown suppliers, demonstrating a sense of “collective conscience” despite existing free trade agreements.
Goyal’s comments come as India strives to establish itself as a competitive manufacturing hub amidst shifting global trade dynamics. He emphasized that, in the face of geopolitical uncertainty, India presents a compelling opportunity due to its rule of law, non-discriminatory practices, and a massive domestic market of 1.4 billion consumers. He urged the domestic sector to take advantage of free trade agreements, noting that the European Free Trade Association, which includes Switzerland, Norway, Liechtenstein, and Iceland, has promised to invest $100 billion in India and bring in technology. He also mentioned ongoing trade negotiations with Australia, the EU, the UK, the United States, and Chile, which could improve the industry’s supply chains.
As India approaches becoming the world’s third-largest economy, Goyal emphasized the country’s growing role in Global Capability Centers, which currently number over 1,700 and are expected to grow significantly. He concluded by calling for a collective commitment to invest in elevating India on the global stage, aiming to position the nation as a leader in various sectors.
