NEW DELHI– Commerce and Industry Minister Piyush Goyal on Tuesday downplayed concerns that higher U.S. tariffs would drag down India’s economy, stressing that the nation’s growth is driven primarily by its vast domestic market rather than exports.
Speaking at the NDTV Profit conclave, Goyal said India remains largely import-dependent and its GDP is not reliant on foreign sales. “Our growth story is powered by internal demand,” he noted.
Still, he acknowledged that certain industries could feel the pinch. “There are two or three sectors that will face significant U.S. tariffs, and textiles is one such sector,” Goyal said, pointing to a potential impact on jobs and competitiveness in that space.
The minister also highlighted recent government reforms, including a reduction in GST rates, which he said will increase disposable income and fuel consumer demand. He credited Prime Minister Narendra Modi with strengthening the economy through “well-planned efforts over the last 11 years.”
Goyal dismissed the notion that U.S. trade policy was keeping him awake at night. “It is not President Trump who keeps me awake, but Prime Minister Modi’s resolve to work for the people,” he quipped.
On the broader relationship, Goyal described India and the United States as “two important nations and good friends,” adding that trade negotiations would take time but were moving in a positive direction.
His remarks followed conciliatory comments from President Donald Trump after last week’s SCO meeting in Beijing, where he praised Modi as “a great Prime Minister” and reaffirmed the U.S.-India partnership. Modi responded warmly, posting on X that he “deeply appreciate[d] and fully reciprocate[d] President Trump’s sentiments and positive assessment of India-US ties.”
The Prime Minister added that the two countries enjoy “a very positive and forward-looking Comprehensive and Global Strategic Partnership.” (Source: IANS)
