Union Minister Piyush Goyal during ‘Key Distribution for Self-redevelopment Project’ at Kandivali, in Mumbai on February 25, 2025.
| Photo Credit: PTI
Union Commerce and Industries Minister Piyush Goyal on Thursday (February 27, 2025) urged Indian industry leaders to shed their protectionist mindset and focus on becoming globally competitive, instead of depending on government support through subsidies, high import duties, and other protective measures.
Speaking at an event organised by the IMC Chamber of Commerce in Mumbai, Mr. Goyal posed a critical question to the industry:
“Till when can we look up to the government [for support]? Or, till when can we win on crutches of subsidies and support, incentives, high import duties, the protectionist mindset, and being very defensive in our engagement with the world?”
He made it clear that India must move beyond short-term protectionist policies and adopt a competitive and self-sustaining approach in global trade. “We as a nation will have to decide to get out of this protectionist mindset and weak-kneed thinking,” he said, emphasising that relying on government interventions would not help the country achieve long-term economic growth.
Competitiveness key to becoming a developed nation
Mr. Goyal stressed that true competitiveness would come from the industry’s ability to innovate, upgrade manufacturing practices, enhance skills, and improve efficiency.
“Unless we become competitive, the aspirations of 140 crore Indians will not succeed, and we cannot achieve the goal of becoming a developed country,” he asserted.
He pointed out that while certain sectors — such as oil, defence, and food — will continue to depend on imports, these exceptions should not justify an overall protectionist approach that hinders India’s economic potential.
Mumbai’s role in India’s economic growth
Mr. Goyal also highlighted Mumbai’s role as the financial powerhouse of India, describing the city as crucial in shaping the country’s economic policies. He urged businesses in Mumbai to lead the charge in making India a global manufacturing hub, leveraging the various government initiatives designed to boost domestic industries.
“The responsibility lies on Mumbai’s industries and financial institutions to drive India’s global economic engagement,” he stated, calling on industry leaders to take bolder steps in expanding India’s global trade footprint.
Challenges in quality standards
A long-standing challenge for India, Mr. Goyal noted, has been maintaining high-quality standards across industries. He called on larger businesses — especially in the pharmaceutical sector — to support smaller companies in meeting global quality benchmarks.
“Bigger players having the necessary global approvals should handhold the smaller players into upping the game on quality for collective benefit,” he said, encouraging businesses to embrace quality standards rather than opposing regulatory mandates.
He emphasised that India could no longer afford to compromise on quality if it wanted to be a serious global competitor.
Importance of free trade agreements and global engagement
Mr. Goyal also spoke about the significance of trade agreements in expanding India’s global presence. He noted that unless India strengthens its engagement with international markets, it cannot realise its vision of becoming a developed economy.
“Unless the country looks at upping its engagement with the world through trade, it cannot become a developed nation,” he remarked.
With ongoing negotiations on free trade agreements (FTAs) — such as the India-U.K. trade pact — he pointed out that global economic dynamics were shifting rapidly, and India needed to remain proactive.
Despite arriving late at the event, Mr. Goyal shared that he had been busy tackling global economic issues and trade discussions. He mentioned that the current turbulent global situation required India to be more competitive, rather than relying on protectionist policies.
Make in India and the future of industry
The Minister concluded by stating that initiatives like Make in India had already begun reshaping the country’s industrial mindset. However, he stressed that industry leaders must now take responsibility for driving innovation, efficiency, and competitiveness.
“The country is ready to play a bigger role in world trade, but it is up to the industry to seize the moment,” Mr. Goyal said.
By shifting away from a protectionist mindset and focusing on competitiveness, he asserted that India could become a major force in global trade and achieve its vision of economic self-reliance.
Published – February 27, 2025 01:23 pm IST
