Piyush Goyal Urges Exporters to Back Domestic Products

Commerce Minister Piyush Goyal has called on Indian exporters to strengthen local supply chains and focus on domestic products to reduce dependence on global markets, especially at a time when trade restrictions by China are impacting key sectors like automobiles and electronics.

A Strong Pitch for Atmanirbhar Bharat

Speaking at the platinum jubilee celebration of the Engineering Exports Promotion Council (EEPC) on September 8, Commerce & Industry Minister Piyush Goyal stressed the importance of Atmanirbhar Bharat (self-reliant India) as a shield against global supply chain disruptions.

“Whenever any nation limits or puts export controls, it impacts our exporters and industry. This is why Atmanirbhar Bharat is key,” Goyal said, highlighting the need for domestic resilience.

The minister’s remarks come at a critical time when China has imposed export restrictions on rare earth magnets and fertilisers, affecting India’s automobile and electronics industries. These restrictions have led to production delays and rising input costs, underscoring the urgency of reducing external dependencies.

Impact of China’s Export Restrictions

India’s automobile sector and electronics manufacturing ecosystem are among the most impacted by China’s recent curbs. Rare earth magnets are critical components in electric vehicles, wind turbines, and electronic devices, while fertilisers are essential for the agricultural supply chain.

• Automobiles: Production schedules are facing delays as companies scramble for alternative sources of rare earths.

• Electronics: Rising costs are putting pressure on consumer durables and smartphone manufacturers.

• Agriculture: Fertiliser curbs may increase input costs for farmers, potentially impacting rural demand.

Goyal’s call to exporters reflects the government’s broader strategy of boosting domestic manufacturing and supply chain diversification to safeguard growth.

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GST Reforms Must Benefit Consumers

Beyond exports, Goyal urged industry leaders to pass on the benefits of GST reforms to consumers. The government has taken several measures to simplify the indirect tax regime and reduce rates, which, according to him, should now translate into stronger demand.

“Steps to simplify GST and reduce rates are designed to uplift domestic consumption. Industry must ensure the entire benefit reaches the consumer,” he said.

Economists note that higher domestic demand would support India’s growth momentum, particularly at a time when global trade faces headwinds.

India’s Growth Story Remains Strong

Despite external challenges, India’s economy continues to outperform expectations. In the first quarter of FY26, GDP grew 7.8%, surpassing market estimates. The growth was led by strong expansion in the services sector, supported by IT, financial services, and robust domestic consumption.

Analysts believe this growth trajectory positions India as a relative bright spot in a slowing global economy, but sustaining momentum will require addressing vulnerabilities in the manufacturing and export sectors.

Jitin Prasada on Innovation and Sustainability

Adding to Goyal’s remarks, Minister of State for Commerce & Industry Jitin Prasada urged exporters to embrace new technologies and sustainable practices to navigate global uncertainties.

“The global environment is not without challenges. Geopolitical tensions and rising protectionism in some regions pose uncertainties, but I am confident our exporters will rise to the occasion with innovation and resilience,” Prasada said.

His comments reinforce the government’s focus on green growth, digital adoption, and diversification of export markets as strategies for long-term competitiveness.

Experts Weigh In

Market experts and trade analysts agree with the minister’s assessment:

• Diversification is Key: Relying heavily on China for critical inputs like rare earths leaves India vulnerable. Exploring partnerships with countries such as Australia, the US, and Japan could mitigate risks.

• Boost to Make in India: Encouraging domestic production of high-value components is critical to reducing dependence.

• Short-Term Pressures: While long-term policies will help, exporters may still face near-term challenges from supply disruptions and cost pressures.

The Road Ahead for Exporters

The government’s message is clear: domestic resilience must take priority. Exporters are being encouraged to:

1. Build local supply chains to reduce reliance on imports.

2. Leverage GST reforms to increase competitiveness and boost consumer demand.

3. Adopt innovation and sustainability to remain relevant in global markets.

4. Diversify markets and suppliers, ensuring business continuity even amid geopolitical tensions.

Key Takeaways

• Piyush Goyal urged exporters to prioritise domestic products and build stronger local supply chains.

• China’s export restrictions on rare earth magnets and fertilisers have disrupted India’s auto and electronics sectors.

• Goyal asked industry leaders to pass GST reform benefits to consumers to stimulate domestic demand.

• India’s economy grew 7.8% in Q1 FY26, driven by the services sector growth.

• Jitin Prasada called for innovation and sustainability, expressing confidence in exporters’ ability to adapt.

Conclusion

Commerce Minister Piyush Goyal’s remarks serve as both a warning and a roadmap for India’s exporters. The China-driven supply disruptions highlight vulnerabilities in key industries, but they also provide an opportunity to double down on Atmanirbhar Bharat.

With reforms in place, strong domestic growth, and government support, India’s exporters are better positioned than before. However, the road ahead requires a careful balance of self-reliance, innovation, and global competitiveness to ensure sustainable growth.

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