Commerce Minister Optimistic on Exports
Amid Iran War Uncertainty
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All-time
high export figure this year and trade deficit much lower than annual remittances
indicate strong economic performance
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India
must use global challenges as a wake-up call to become more efficient, reduce waste,
improve productivity and lower the import bill to collectively strengthen the economy
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FTAs
with developed economies will help India leverage large global markets to boost
exports
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AI will
make businesses more efficient and Indian industry should use it to increase productivity
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Exports
from GCCs growing 40-50 per cent annually and present huge growth potential
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USD
2 trillion export target within reach through innovation and global competitiveness;
15 per cent annual export growth can help India achieve the target
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India
must move from “assembled in India” to “designed, engineered and manufactured in
India”
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Quality
should be non-negotiable in manufacturing and Indian standards must rise to global
levels
·
Piyush Goyal addressed the CII Annual Summit 2026
in New Delhi and said India remains the world’s fastest-growing large economy
despite global geopolitical and economic challenges.
·
He highlighted India’s strong macroeconomic
fundamentals, including:
o
nearly 11 months of import cover in foreign
exchange reserves,
o
and projected record exports of around US$863
billion this year.
·
Goyal said India’s combined trade deficit in goods
and services remains lower than annual remittance inflows, reflecting economic
resilience.
Push for
Self-Reliance and Efficiency
·
Referring to the Atmanirbhar
Bharat vision under Narendra Modi, Goyal said India should use global
disruptions as an opportunity to become:
o
more productive,
o
more efficient,
o
and more self-reliant.
·
He urged Indian industries to support one another
and strengthen collective national growth.
·
Goyal also highlighted the success of India’s LED
lighting programme, saying energy-efficiency measures have saved roughly US$10
billion annually.
Focus on
Free Trade Agreements
·
Goyal said India signed nine Free Trade Agreements
in the last three-and-a-half years with 38 countries, mainly developed
economies.
·
He stated these FTAs would:
o
attract investments,
o
expand exports,
o
and provide Indian firms access to high-income
global markets.
·
He specifically mentioned opportunities arising
from partnerships with:
o
Switzerland,
o
the United States,
o
and the European Union.
·
According to Goyal, India’s manufacturing
competitiveness and skilled workforce give it advantages in serving these
markets.
AI,
Technology and GCC Growth
·
Goyal urged businesses to treat artificial
intelligence as a growth accelerator rather than only a cost-cutting tool.
·
He encouraged companies to train employees in:
o
artificial intelligence,
o
robotics,
o
machine learning,
o
and quantum computing.
·
He said India has successfully adapted to previous
technology transitions, evolving from call centres to advanced software and
business services.
·
Goyal added that sectors such as hospitality and
jewellery would continue to depend heavily on human creativity despite AI
adoption.
Rapid
Expansion of Global Capability Centres
·
India currently hosts nearly 1,800 Global
Capability Centres (GCCs), with another 500 expected in coming years.
·
GCC exports are reportedly growing by 40–50%
annually and currently generate around US$50 billion in exports.
·
The sector employs nearly two million people
directly.
Emerging
Growth Sectors
·
Goyal identified opportunities in:
o
lab-grown diamonds,
o
renewable energy-based manufacturing,
o
artificial jewellery,
o
and advanced technology industries.
Ambitious
Export Target
·
The minister called on industry to work toward
achieving US$2 trillion in exports within five to six years.
·
He said the goal would require annual export growth
of around 15%.
Four-Point
Call to Industry
Goyal
urged Indian businesses to:
1.
Move from “assembled in India” to “designed,
engineered and manufactured in India”.
2.
Increase localisation and value addition in supply
chains.
3.
Maintain “zero defect, zero effect” manufacturing
standards focused on quality and sustainability.
4.
Increase investment in research, innovation and
emerging technologies.
·
He said Indian talent has the capability to lead
globally in the next technological era, just as India became a major force
during the IT revolution.
Union
Minister of Commerce and Industry Piyush Goyal addressed the Confederation of Indian
Industry (CII) Annual Summit on 12 May, 2026 in New Delhi and said that the Indian
economy has continued to show resilience amid global geopolitical and economic challenges,
with strong fundamentals and growing global confidence in India.
Mr.
Goyal said India remains the fastest-growing large economy and highlighted that
the country has nearly 11 months of import cover in foreign exchange reserves. Referring
to India’s export performance, he said the country is set to achieve an all-time
high export figure of nearly USD 863 billion this year. He added that India’s trade
deficit in goods and services together is much lower than the country’s annual remittances,
reflecting strong economic performance.
The
Minister said India has consistently turned crises into opportunities and noted
that the country has always emerged stronger during periods of adversity. He said
the current global situation should be viewed as a wake-up call for India to become
more efficient, productive and self-reliant.
Referring
to the vision of Atmanirbhar Bharat, Mr. Goyal said the
doctrine of self-reliance and confidence in Indian capabilities has remained consistent
under the leadership of Prime Minister Mr. Narendra Modi. He said the government
and industry must work together to strengthen the India growth story.
The
Minister stressed the need for Indian industry to support one another and said collective
growth of Indian industry would strengthen the country’s future. He referred to
earlier statements made over the years on self-reliance, quality, productivity,
innovation and collective action, and said these principles continue to guide the
government’s economic thinking.
Mr.
Goyal highlighted several initiatives aimed at improving efficiency and reducing
wastage, including the LED lighting programme launched in 2015. He said energy efficiency
measures have helped save nearly USD 10 billion annually in energy costs while also
contributing to sustainability and environmental protection.
Calling
for greater efficiency across sectors, Mr. Goyal urged industry to focus on reducing
waste, improving productivity and bringing down the import bill in every possible
way. He said investments in public transport infrastructure, including metros and
rapid rail systems, along with conscious efforts by industry and citizens, would
collectively strengthen the economy.
On
India’s Free Trade Agreements, Mr. Goyal said the nine FTAs signed in the last three-and-a-half
years with 38 countries are all with developed economies and will help India attract
investments and expand exports. He said these countries complement rather than compete
with India and provide access to large global markets with significant import demand.
Mr.
Goyal said countries such as Switzerland, the United States and nations in the European
Union have much higher per capita incomes and cannot manufacture products at costs
lower than India. He noted that while these economies possess strong technological
and industrial capabilities, India has the advantage of competitive manufacturing
and talent, which can help the country leverage these large markets more effectively.
The
Minister said the FTAs are intended to strengthen India’s export capabilities, increase
investments and create new opportunities for Indian businesses in global markets.
He urged industry to leverage these agreements to expand their international presence
and accelerate export growth.
Referring
to the changing nature of global trade, Mr. Goyal also said that modern trade agreements
increasingly include strong mobility partnership components, reflecting the growing
importance of movement of skilled professionals and services in global commerce.
He highlighted that more than 10 million Indians are currently working in Gulf countries,
while the number of Indians working in the UAE alone has increased from around 1.8
million to 4.5 million over the last 12-13 years, underlining India’s growing contribution
to the global services economy.
The
Minister urged industry to leverage artificial intelligence, robotics and quantum
computing as force multipliers for growth and competitiveness. He said AI should
not be viewed merely as a cost-cutting tool but as an instrument for business expansion,
efficiency and market growth. Mr. Goyal called upon industry bodies such as CII
to deeply reflect on the transformative potential of artificial intelligence and
examine areas where AI can make businesses smarter, more productive and globally
competitive.
Mr.
Goyal advised industry to run dedicated programmes for employees to train them in
smarter uses of AI and said companies should use AI to improve productivity, capture
larger markets and grow businesses rather than simply reduce manpower. He added
that while some sectors may face technological disruption, India has consistently
adapted to changing technologies by moving from call centres to BPOs, software services
and higher-end business solutions.
He
further said that sectors such as hospitality, jewellery and several people-centric
industries would continue to rely heavily on human creativity and skills, even in
the age of artificial intelligence.
Highlighting
the rapid growth of Global Capability Centres (GCCs), Mr. Goyal said nearly 1,800
GCCs are already operating in India and another 500 are expected in the coming years.
He said exports from GCCs are growing by nearly 40-50 per cent annually and currently
stand at around USD 50 billion, employing nearly two million people directly.
Mr.
Goyal also pointed to emerging opportunities in sectors such as lab-grown diamonds,
renewable energy-based manufacturing and artificial jewellery, saying these sectors
can generate large-scale employment and create new export opportunities.
Calling
upon industry to work towards achieving the target of USD 2 trillion exports over
the next five to six years, Mr. Goyal said the target was achievable with annual
export growth of around 15 per cent. He expressed confidence in the capabilities
of Indian industry and said sectors across the economy, including automobiles, steel
and startups, have the potential to drive this growth through innovation, competitiveness
and expansion into global markets.
The
Minister concluded with a four-point call to action for industry and urged businesses
to move from “assembled in India” to “designed, engineered and manufactured in India.”
He called upon industry to move up the value chain, enter deeper value chains, focus
on higher value addition and become self-reliant in critical components. Mr. Goyal
suggested that industry bodies and companies could create scorecards to measure
progress in areas such as indigenisation, localisation, exports over imports and
net foreign exchange earnings over the coming years.
Emphasising
that quality should be non-negotiable, Mr. Goyal called for a focus on “zero defect,
zero effect” manufacturing and said sustainability and climate consciousness must
become integral to India’s manufacturing growth story. He said Brand India should
reflect high quality standards and become a global benchmark in the future.
The
Minister also stressed the importance of increasing investments in research and
development and innovation and called for attracting global investments in R&D
to India. He urged Indian industry to bring domestic standards at par with global
standards and adopt a more globally competitive outlook.
Mr.
Goyal further urged industry to take leadership in emerging technologies such as
artificial intelligence, machine learning and quantum computing. He said that just
as India led the world during the IT revolution, Indian talent has the capability
to lead the world in the new-age technology era as well.