Industry needs to quickly identify weak spots, reduce dependence on single geography: Goyal

New Delhi, Dec 3 (PTI) Commerce and Industry Minister Piyush Goyal on Wednesday urged the industry to quickly identify weak spots, focus on innovation, and reduce dependence on any single geography to ensure long-term resilience and growth.

The minister said that these initiatives are important as "we have seen the weaponisation of trade in recent times".

He regretted that the industry has not taken up these issues seriously.

"The need of the hour is that we focus on innovation, we focus on understanding where the chinks in our armour are. There will be many products, where we will need to be self-sufficient. You will need to have the supply chain in our own control. Particularly, after the way we have seen the weaponisation of trade in recent times.

"I will have to repeat it many times, I think, because I still don't see that sense of urgency where people are assessing their supply chains...and such areas of concern. If we can identify them quickly, if we can plug them quickly. It will be essential in our long-term strategies both to survive and to grow," he said here at a CII conference.

The imposition of high tariffs by the US on Indian goods has disrupted the country's exports to its largest export destination.

The imposition of these import duties by the Donald Trump administration on other countries has disrupted the global supply chains.

Similarly, restrictions imposed by China on goods like rare earth magnets have impacted Indian industries in sectors such as auto and electronics.

The minister's remarks are important as Indian businesses are dependent on China in many sectors such as pharma, telecom, machinery and electronics.

According to a report of think tank GTRI, over the last 15 years, China's share in India's industrial product imports has increased significantly, from 21 per cent to 30 per cent.

Goyal said that if a country does not allow exports of a particular product or if it is not available to the domestic industry at any point in time, it could cripple an entire operation.

"An entire business model would be at the mercy of your source of supply country or company," he said, adding, "you will have to have a twin-edged approach - focus on where we have a comparative advantage and where we need to decouple".

He also suggested that the domestic players support each other to deal with such situations.

"We cannot expect somebody from outside to come and help us," the minister said.

Further, he said that "we can't live in a cocoon in today's day and age", and the country will have to integrate with the rest of the world and open the doors.

Citing an example of the electronics sector, he said interdependencies are going to grow.

To boost domestic manufacturing, he said, the government is working on setting up 12 industrial parks.

"We are proposing 100 more industrial parks to come up very soon in partnership with states," Goyal said, suggesting companies should have good HR practices.

Companies with bad labour or HR "never succeed", he said.

He said that the target to increase the share of manufacturing in the country's GDP from 15-17 per cent to 25 per cent is not difficult. PTI RR CS HVA