The Confederation of Indian Industry (CII) Western Region has called for urgent market diversification, stronger export competitiveness and accelerated MSME development as Indian industry navigates a difficult global trade environment shaped by US tariff uncertainty and rising import costs. CII Western Region chairman Vir S Advani made the remarks at a media roundtable in Ahmedabad on 14 August, outlining the industry body's priorities for Gujarat's next phase of industrial growth.

US Tariff Threat and the Case for Diversification

Advani identified the proposed 100% US tariff as the single most pressing concern for Indian exporters. 'This 100 per cent tariff is the big elephant. That's what's concerning everyone,' he said, while noting that 'very heavy bilateral conversation and communication' between India and the US was now under way. CII, he added, is more optimistic about the India-US trade situation than it was earlier in the year and expects the issue to be negotiated toward an outcome favourable to India relative to its competitors.

However, Advani stressed that the tariff standoff had exposed a structural vulnerability: Indian exports are concentrated in too few products and too few destination markets. He pointed to the United Kingdom, the European Union and Australia as priority markets deserving closer attention. CII, he said, is working with the Ministry of Commerce on a granular, product-and-country-level export strategy following recent free trade agreement signings — mapping opportunities down to the six-digit HSN code level.

'We only export such few products and only to such few countries. So diversification is the most important thing,' Advani said. He argued that growing exports, rather than simply curbing imports, was the more sustainable route to managing India's balance of payments and stabilising the rupee.

MSME Competitiveness: The SME-to-MNC Programme

MSME development emerged as a central theme, with Advani describing smaller businesses as often lacking the resources to identify overseas markets, improve competitiveness or manage multiple operational demands simultaneously. CII's Western Region — covering Gujarat, Maharashtra and Goa — is preparing an 'SME to MNC' programme under which larger companies would provide structured support to smaller businesses in their supply chains over a 24-month period through CII's Centre of Excellence on MSME Competitiveness.

The programme targets businesses with revenues of around ₹100 crore, with the stated aim of helping selected companies scale to ₹1,000 crore and eventually enter international markets. 'If we can create even 20 companies who can come out of this ₹100 crore range… if 20 of them can become ₹1,000 crore companies with CII's help, then from ₹1,000 crore to ₹10,000 crore, they'll do on their own,' Advani said.

On the policy side, Advani called for reforms to GST, customs and indirect taxes to free up capital within businesses, and advocated for decriminalisation of provisions in commercial laws to boost entrepreneurial confidence and encourage investment.

AI Access and Technology Adoption for Smaller Firms

Artificial intelligence was flagged as another area where CII is actively supporting MSMEs. Advani said the organisation had conducted workshops on deploying AI in business operations and is exploring ways to improve technology access for smaller firms that may struggle with the cost of advanced AI tools. CII is also facilitating connections between technology start-ups and established companies through its Centres of Excellence.

The organisation expressed particular interest in open AI models and regional-language models, which could offer cost-effective alternatives to expensive proprietary systems. CII's current AI focus, Advani clarified, is on broad-based learning, training and adoption rather than sector-specific research.

Gujarat's Data Centre Ambitions and New Industrial Policies

Achal Bakeri, chairman of CII Gujarat, highlighted the state's emerging position as a potential data centre hub, citing available land, reliable power supply, relatively low construction costs and submarine data cables landing along Gujarat's coastline. He identified Dholera as a key location for large-scale digital infrastructure. 'The ambition is for Gujarat to be the data centre capital of this country, if not of Asia,' Bakeri said, while acknowledging that water availability and environmental considerations remained open questions for hyperscale projects.

Gujarat's Data Centre Policy 2026-29 targets 7.5 GW of capacity and aims to attract large-scale hyperscale investment. Bakeri also welcomed the Viksit Gujarat Industrial Policy 2026 and the Gujarat Shipbuilding and Repair Policy 2026, describing them as reinforcing the state's manufacturing, maritime and digital ambitions. CII Gujarat's guiding theme for the period is 'Virasat Se Vikas: Gujarat@2047' — development rooted in the state's heritage, enterprise and craftsmanship.

Vibrant Gujarat 2027 and the Road Ahead

Advani said the Vibrant Gujarat Regional Conferences had helped extend investment outreach beyond Ahmedabad and Gandhinagar, bringing the process closer to investors across different parts of the state. He expects the Vibrant Gujarat Global Summit in January 2027 to draw heightened attention to advanced manufacturing, semiconductors, defence and aerospace, AI and data centres. 'I think the nature of the investment will go more towards advanced manufacturing, because that's also the direction India is in,' he said.

CII also recommended a tourism-led development approach linking tourism with sports, heritage and conservation, and noted that Gujarat's expanding air connectivity — including smaller-city links — could spread economic benefits beyond established destinations. Advani confirmed CII would continue supporting the Gujarat government on policy advocacy, exports, renewable energy, logistics, skills and MSME development ahead of the 2027 summit.