Embrace economic nationalism, support domestic suppliers over cheaper imports: Goyal to businesses

Mumbai: Union Commerce and Industry Minister Piyush Goyal on Monday called on Indian businesses to embrace "economic nationalism" by supporting domestic suppliers rather than opting for marginally "cheaper" imports.

Speaking at the 98th Foundation Day celebrations of the industry body FICCI in the financial capital here, the minister invoked Mahatma Gandhi's nationalist ethos, urging India's industrial leaders to prioritise domestic value chains even when foreign alternatives appear more economical in the short term, FICCI said in a release.

Goyal, according to the release, cited examples of Japan and Korea, where despite free trade agreements, domestic industries consistently support local suppliers as a matter of "collective conscience".

Goyal's comments come as India positions itself as a viable manufacturing alternative amidst shifting global trade patterns, as per the release.

He emphasised that despite geopolitical volatility, India presents an "attractive proposition" with its rule of law, non-discrimination policies, and domestic market of 1.4 billion consumers, it said.

The minister said the European Free Trade Association (Switzerland, Norway, Liechtenstein, and Iceland) has committed to bringing technology and investing USD 100 billion in India.

He also highlighted progress on trade agreements with Australia, the EU, the UK, the US, Chile, and Peru. He urged the domestic industry to leverage FTAs.

India is progressing towards becoming the world's third-largest economy, coinciding with FICCI's upcoming centenary, Goyal said, adding that the country's growing role in global capability centres, with over 1,700 now operating in India with significant expansion plans.

"Let's all collectively resolve that in the next few years, we'll be investing in taking India to the world. We'll be investing in making India the best in the world," Goyal, who felicitated past presidents of the industry body during the event, said.

"Since its inception in 1927, FICCI has been at the forefront of shaping India's economic and industrial landscape. FICCI anticipated industry's needs long before they became national priorities," FICCI President Harsha Vardhan Agarwal said.

The Foundation Day also commemorates Mahatma Gandhi's historic address at FICCI's fourth Annual General Meeting on April 7, 1931, where he articulated his vision of business as a service to society, the release added.