Trade Union Minister Piyush Goyal during the “Key Distribution of Self-Redevelopment Projects” in Kandivali, Mumbai on 25 February 2025. |Photo source: PTI
Union Commerce and Industry Minister Piyush Goyal urged Indian industry leaders on Thursday (27 February 2025) to move away from the protectionist mentality and focus on competing globally rather than relying on government support through subsidies, high import taxes and other protection measures.
Speaking at an event held in Mumbai by the IMC Chamber of Commerce, Mr. Goyal raised a key question to the industry:
“Until when can we look up to the government [for support]? Or until when can we win subsidies and support, incentives, high import responsibilities, a protectionist mentality, and a very defensive victory in interactions with the world? ”
He made it clear that India must go beyond short-term protectionist policies and adopt a competitive and self-sustaining approach in global trade. “As a country, we will have to decide to get rid of this protectionist mindset and weak thinking,” he said, stressing that relying on government intervention will not help the country achieve long-term economic growth.
The key to becoming a developed country’s competitiveness
Mr Goyal stressed that true competitiveness will come from industry innovation, upgrading manufacturing practices, improving skills and improving efficiency.
He asserted: “Unless we become competitive, the aspirations of 1.4 billion Indians will not be successful and we cannot achieve our goal of becoming a developed country.”
He noted that while certain sectors (such as oil, defense and food) will continue to rely on imports, these exceptions should not justify the overall protectionist approach that endangers India’s economic potential.
Mumbai’s role in India’s economic growth
Mr Goyal also stressed Mumbai’s role as a financial power in India, saying the city is crucial to shaping the country’s economic policies. He urged Mumbai businesses to lead the charge, making India a global manufacturing hub, leveraging a variety of government initiatives designed to promote domestic industries.
“The responsibility lies with Mumbai’s industries and financial institutions to drive global economic participation in India,” he said.
Challenges of quality standards
Mr Goyal pointed out that India’s long-term challenges have been maintaining high quality standards across the industry. He called on larger companies, especially in the pharmaceutical sector, to support smaller companies to meet global quality benchmarks.
“Having the larger players with the necessary global approvals should enable smaller players to improve quality with quality for collective benefit,” he said. He encouraged companies to accept quality standards rather than oppose regulatory requirements.
He stressed that if India wants to be a serious global competitor, India will no longer be able to compromise on quality.
The importance of free trade agreements and global participation
Mr Goyal also spoke about the importance of a trade agreement in expanding India’s global presence. He noted that unless India strengthens its participation in international markets, it will not be aware of its vision of becoming a developed economy.
“Unless the country improves interaction with the world through trade, it cannot be a developed country,” he said.
With ongoing negotiations on the Free Trade Agreement (FTA), such as the India-UK Trade Agreement, he noted that the global economic momentum is rapidly shifting and India needs to remain proactive.
Despite attending the event late, Mr Goyal shared that he has been busy addressing global economic issues and trade discussions. He mentioned that the current turbulent global situation requires India to be more competitive than rely on protectionist policies.
The Future of India and Industry
The minister concluded that initiatives like the manufacturing of India have begun to reshape the country’s industrial mindset. However, he stressed that industry leaders must now be responsible for driving innovation, efficiency and competitiveness.
“The country is ready to play a bigger role in world trade, but it depends on the industry to seize this moment,” Goyal said.
By moving away from the protectionist mentality and focusing on competitiveness, he asserted that India could become a major force in global trade and realize its vision of economic self-reliance.
publishing – February 27, 2025 at 01:23 pm IST
