Should Exporters Prioritize Local Supply Chains?
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Synopsis
In a critical address, Piyush Goyal emphasizes the importance of local supply chains for exporters to bolster India's economic security amid global uncertainties. He urges the industry to embrace sustainable practices and new technologies to navigate challenges, ensuring resilience and innovation in the face of rising protectionism and trade tariffs.
Key Takeaways
- Prioritize local supply chains to enhance economic security.
- Adapt to global changes by diversifying supply chains.
- Pass on GST benefits to consumers for economic growth.
- Embrace sustainable practices and new technologies.
- The government supports exporters through proactive measures.
New Delhi, Sep 8 (NationPress) The Minister of Commerce and Industry, Piyush Goyal, on Monday called on exporters to focus on local supply chains to enhance India's economic security amidst global trade uncertainties that could disrupt domestic production timelines.
"We have recently observed that when any country imposes export restrictions, it adversely affects our exporters and industries. This is why Atmanirbhar Bharat is crucial," Goyal remarked during his speech at the platinum jubilee celebration of the Engineering Exports Promotion Council (EEPC).
His remarks were prompted by China’s restrictions on the export of rare earth magnets, which have hindered the production schedules in India’s automobile and electronics sectors.
The minister also encouraged the industry to pass on the full benefits of the Goods and Services Tax (GST) reduction recently announced by the government to consumers. He pointed out that simplifying the indirect tax system and lowering rates would boost domestic demand and consequently stimulate economic growth.
India's economy registered a growth of 7.8 percent in the first quarter of 2025-26, exceeding market predictions, driven by robust growth in the services sector.
Goyal reassured Indian exporters that the government is proactively working to create a favorable environment to help them manage the challenges posed by rising trade tariffs.
At the event, Jitin Prasada, Minister of State for Commerce and Industry, stated that Indian exporters need to adopt new technologies and sustainable practices, expressing confidence that businesses can navigate the current uncertainties.
"The global landscape is fraught with challenges. Geopolitical tensions and increasing protectionism in certain areas create uncertainties, but I am confident our exporters will meet these challenges with innovation and resilience," Prasada added.
Recently, Goyal chaired a meeting with Export Promotion Councils and Industry Associations to strategize amidst changing trade dynamics.
He urged exporters to enhance product quality, comply with global standards, diversify their supply chains, and seek new markets. There was a general agreement on the necessity for alternative mechanisms, with the Government committed to addressing sector-specific issues and fostering sustained export growth.
The Union Minister stressed that India's long-term objective is to fortify domestic manufacturing and increase exports. He assured EPC and industry representatives that the government remains dedicated to creating a supportive ecosystem through ease of doing business initiatives, targeted trade support, and timely policy measures to alleviate the impact of rising tariffs.
Point of View
Strengthening local supply chains is essential for India's economic resilience. As global trade dynamics fluctuate, prioritizing domestic production not only safeguards our economy but also ensures greater stability for exporters in challenging times.
NationPress
09/09/2025
Frequently Asked Questions
Why is Piyush Goyal emphasizing local supply chains?
Piyush Goyal emphasizes local supply chains to enhance India's economic security and reduce dependency on international markets amid global trade uncertainties.
What impact do global trade uncertainties have on Indian exporters?
Global trade uncertainties can disrupt domestic production schedules, affecting the ability of Indian exporters to meet market demands efficiently.
What are the benefits of the GST reduction mentioned by Goyal?
The GST reduction allows businesses to pass savings to consumers, which can stimulate domestic demand and promote economic growth.
How is the government supporting exporters facing rising trade tariffs?
The government is committed to creating a supportive ecosystem through targeted trade support, policy interventions, and initiatives aimed at easing business operations.
What role do technologies and sustainable practices play in exporting?
Adopting new technologies and sustainable practices helps exporters enhance product quality and align with global standards, fostering competitiveness in the market.
