India Inc in 'cosy, comfort zone' courtesy large local mkt, not venturing out globally: Goyal

Mumbai, Aug 30 (PTI) Indian businesses are in a "cosy comfort zone" created by the presence of a 1.4 billion-person domestic market, and need to find opportunities globally, Union Commerce Minister Piyush Goyal said on Saturday.

In the comments that come amid deep concerns about the impact of high US tariffs on the Indian economy, Goyal asked India Inc not to get carried away by any "negative narrative", and reminded that the country's GDP growth has accelerated to 7.8 per cent in June.

Even as it braces for the impact of the US' tariff moves, Goyal exuded confidence that the overall exports will grow this year and also pointed out that over USD 46 billion of the USD 87 billion exports to the US are unaffected by the tariff moves.

The high growth shown by the official data on Friday did not surprise anybody in the government, Goyal said, adding that the performance is a "resounding response" to naysayers and pessimists like Rahul Gandhi, the Leader of Opposition in the Lok Sabha, economists and certain sections of the media.

"India is full of resilience, confidence and is raring to continue to be the fastest growing economy for the next 22 years. India will continue to power on. Our exports will continue to grow, we will do higher exports this year than last year and the future is extremely bright," Goyal told PTI Videos on the sidelines of an event here.

Speaking at the India-UAE Business interaction organised by industry lobby grouping CII here, Goyal acknowledged that the domestic market is one of the biggest drivers of growth and also spoke candidly on the industry's role.

"I often feel the large 1.4 billion domestic market has become somewhat a cosy comfort zone in which our businesses make good profit and don't venture out to look at opportunities around the world," he said.

Goyal said the amount of value addition being done by the Indian industry is very low, pointing out how the country is a seller of rice but not rice puffs or ready-to-eat food products, or how it is an iron ore seller but not a high-quality steel exporter.

Citing the case of the fashion industry, where he rued the lack of presence of Indian clothing in high street clothing, Goyal underlined the need to brand India differently.

Stating that Prime Minister Narendra Modi has instructed him to "trust" both businesses and people, he said the government is keen to work with the industry to solve any obstacles and eager to hear from the businesses.

"Ask for help. Give us your support. Don't lose out this opportunity. Put pressure on us," he told the captains of the industry.

On the US tariff impacts, Goyal said the move by President Donald Trump's administration should not deter us and asked all to pull up their socks. The US has imposed a 50 per cent tariff on Indian goods, impacting sectors such as textiles and apparel, gems and jewellery, shrimp, leather, and others.

Of the impacted sectors, he said the value add done by the Indian gems and jewellery sector is a low 3-4 per cent, but acknowledged that we will have to work hard to minimise the impact in the textiles and shrimps exports.

Goyal said he got on a call with industrialist Noel Tata, who runs the popular Zudio and Westside chains, after the US tariff move and has requested the company to pick-up the US tariffs-impacted goods for sale in local market at a discount till alternative markets are found.

Stating that India always shines in adversity, Goyal listed out a slew of trade agreements which the government is negotiating currently with the purpose of diversifying the trade basket, and added that the 7.8 per cent GDP growth should serve as a "morale booster".

Citing the alleged abuse meted out to the Prime Minister in Bihar, Goyal said, "Such persons truly hurt the India story. But I wish Indian industry would not get carried away by this negative narrative.".

Goyal said it is unfortunate that all those who deride their own motherland and the pessimists do not understand simple elementary economics, and reminded them that the export contribution is very low in India, which is primarily a domestically driven economy.

He also affirmed the government's commitment to reform and do all that is necessary to spur growth, and hoped that the decision coming out of the GST Council meet will be a "sane" one that will give a boost to the domestic demand.

"I can promise you, you (industry) are all going to be immensely pleased after the GST Council meeting," he added.

Meanwhile, speaking at the same event, the UAE's minister for foreign trade, Thani bin Ahmed Al Zeyoudi assured that the Gulf nation and India will always be together irrespective of the changes in the world trade order.

"No matter how the world and the partners are dealing with each other, and they're changing their policies and changing their position against each other, the UAE and India will always be together," he said. PTI AG AA MR