Piyush Goyal urges Indian industry to urgently reassess supply chains, boost manufacturing amid trade curbs

Commerce Minister Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal on December 3 urged Indian industry to urgently reassess their supply chains, warning that over-reliance on a single geography or supplier could threaten long-term business survival.

He reiterated India cannot afford to remain dependent on concentrated global supply chains, outlining a twin strategy of global competitiveness and strategic autonomy to expand the country's manufacturing sector.

“…there will be many products in which we need to be self-sufficient, where we need to have supply chains in our own control, particularly the way we have seen the weaponisation of trade in recent times. I still don’t see the sense of urgency wherein people are assessing their supply chains to see where the concentration of a geography or a supplier can hurt their long-term survival. Identifying and plugging such areas of concern will be essential in our long-term strategies to survive and grow,” he said.

His remarks come at a time when China has intensified export curbs and trade restrictions, especially on critical minerals, capital equipment, and electronics supply‑chain inputs, prompting concerns across India’s manufacturing and export sectors.

Goyal said he agrees on the need to accelerate manufacturing growth, aiming to raise it from the current 9 percent to around 12.5 percent, terming it as an achievable target.

He also said that India will need to integrate more closely with the global economy, which will require opening “some doors in its own market” even as it seeks to unlock opportunities abroad.

“You can't live in a cocoon in today's day and age. We will have to integrate with the rest of the world, we will have to unlock doors in other markets but as we wish to do that, we have to open some doors in our own market. It will be a two-way win-win solution…”

India is currently negotiating trade agreements with several countries and blocs, including the European Union, the United States, New Zealand, Oman, Peru, and Chile.