NEW DELHI– Commerce and Industry Minister Piyush Goyal said Tuesday that the latest U.S. tariff hike will not significantly affect India’s economy, stressing that the nation’s growth is driven by its domestic market rather than exports.
Speaking at the NDTV Profit Conclave, Goyal emphasized that India’s GDP is not export-dependent and pointed out that the country remains more reliant on imports than on overseas sales. “India has a large domestic market, and our GDP is not dependent on exports,” he noted.
Still, Goyal acknowledged that some sectors may feel the pinch. “There are two or three sectors that will face significant U.S. tariffs, and textiles is one such sector,” he said.
The minister also highlighted the recent cut in Goods and Services Tax (GST) rates, which he said would put more disposable income in the hands of consumers, boosting demand and spurring growth. He credited Prime Minister Narendra Modi with steering the economy on a steady path through “well-planned efforts” over the past 11 years.
In a lighter moment, Goyal remarked that it was not U.S. President Donald Trump who kept him awake at night, but rather Modi’s determination to work for the people of India.
On the broader relationship with Washington, Goyal described India and the U.S. as “good friends,” while noting that progress in bilateral trade talks takes time. His comments came soon after Trump struck a conciliatory tone at the Shanghai Cooperation Organisation (SCO) summit in Beijing, where Modi was also present.
“I will always be friends with Modi, he is a great Prime Minister. India and the United States have a special relationship. There is nothing to worry about,” Trump said.
Prime Minister Modi responded warmly, writing on X that he “deeply appreciates and fully reciprocates President Trump’s sentiments and positive assessment of India-U.S. ties.” He added that both countries share a “very positive and forward-looking Comprehensive and Global Strategic Partnership.” (Source: IANS)
