Our exports to surpass previous year’s figures despite US tariffs: Piyush Goyal

Amid the imposition of a 50 per cent tariff on Indian goods imported into the US, Commerce and Industry Minister Piyush Goyal on Friday asserted that the country’s exports will surpass previous years’ figures and its global market share will continue to grow. India exported goods worth $437.42 billion in 2024-25, according to the Commerce Ministry data.

“India’s share in the global market is still small, so we don’t need to be afraid,” Goyal said, addressing concerns about the US tariffs. This includes a 25 per cent reciprocal tariff and an additional 25 per cent penalty linked to India’s continued oil purchases from Russia.

He noted that 40 per cent of India’s exports to the US are exempt from these tariffs, including critical sectors like pharmaceuticals and electronics. Goyal also downplayed the impact of affected sectors such as gems and jewellery.

Goyal expressed confidence in India’s economic trajectory. He underscored the government’s commitment to forging equitable trade agreements, saying, “If someone wants a good agreement with us, we are always ready. But if someone tries to discriminate against us, we will never bow down and never be weak.”

The minister outlined an ambitious strategy to capture new markets and leverage Free Trade Agreements (FTAs) to mitigate the impact of US tariffs.

Goyal highlighted that negotiations for a Free Trade Agreement with the European Union (EU) are progressing rapidly, with Commerce Secretary Sunil Barthwal scheduled to visit Brussels for discussions. An EU delegation is also expected to arrive in New Delhi on September 8 for the 13^th round of talks. The two sides are aiming to finalise FTA by December 2025.

“The entire world knows our economy will grow in the coming years,” Goyal said, emphasising the EU’s importance as India’s major trading partner. In 2024-25, India exported goods worth $75.76 billion to the EU, resulting in a trade surplus of USD 15.10 billion.

The proposed FTA aims to reduce EU tariffs on Indian automobiles, textiles, and pharmaceuticals while addressing non-tariff barriers like environmental regulations and professional mobility for India’s IT sector.

In addition to the EU, Goyal said India is actively pursuing FTAs with multiple countries to diversify its export markets.

Goyal revealed that Australia is keen to sign the second tranche of its Economic Cooperation and Trade Agreement, while Oman’s FTA is nearing finalisation. Discussions are also underway with New Zealand, Peru, and Chile.

“The entire world wants to enhance their trade with India,” Goyal said, citing India’s growing appeal as a manufacturing hub and its resilient domestic demand.

The minister also highlighted the Comprehensive Economic and Trade Agreement (CETA) signed with the United Kingdom in July 2025, which provides duty-free access to 99 per cent of Indian exports, including textiles and leather.

However, the US tariffs, effective from August 27 have sparked concerns about India’s $86.5 billion export market to the US, with sectors like textiles, gems, and furniture facing significant challenges.

In response, the government is focusing on market diversification. Export Promotion Councils have been tasked with targeting 40 key markets, including the UK and Japan, to boost textile exports and leverage existing FTAs.