'IT will power AI's future': Piyush Goyal dismisses market, investors fears

Piyush Goyal

• Piyush Goyal says IT sector fears are misplaced amid AI growth
• India's trade deals protect farmers, MSMEs, and dairy sector
• Agreements with US, EU expected to boost venture capital inflows

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Union Commerce Minister Piyush Goyal on Wednesday brushed aside anxieties in the stock market about the outlook for information technology companies, terming such fears misplaced and asserting that the industry will be central to the growth of artificial intelligence.

Addressing a gathering at the GEC event in Mumbai, Goyal said recent market unease over the IT sector does not reflect the sector’s long-term prospects. “Of late, I'm seeing in the stock market some discontentment about the future of the IT industry. I find it quite ridiculous. Because these are the companies who will be required for artificial intelligence to flourish,” he said.

Market concerns amid AI developments

Shares of IT firms have come under pressure over the past two weeks, particularly after the debut of new AI platforms by US-based companies such as Anthropic. The developments have led to speculation about the future role of India’s nearly USD 300 billion IT industry, which provides direct employment to around 50 lakh people.

Goyal countered these concerns by pointing to the critical functions technology companies will perform in emerging domains. He cited areas such as cybersecurity and data scrubbing as examples where IT firms will play a vital role in supporting AI-driven systems.

Trade agreements, safeguards

Turning to trade policy, the minister said India has concluded nine trade agreements in recent years, including arrangements involving blocs such as the European Union and the United States. He emphasized that sensitive domestic interests have been protected in these negotiations.

“We have finalised all the sensitivities that need to be protected. Our farmers are fully protected. Our MSMEs are fully protected, not a single farmer will have cause for complaint once the full text is out,” Goyal said.

He added that the complete text of the agreement with the US has not been released publicly in order to “pre-empt” the final version.

No opening of dairy sector

Addressing apprehensions surrounding the dairy industry, Goyal stated that India has not opened up the sector in any agreement. “We haven't opened dairy for any country whatsoever. Countries like Australia, New Zealand, the US or Europe have never opened or done a free trade agreement without dairy as an integral part of the agreement. But they have accepted to do it with India,” he said.

According to the minister, this outcome reflects the credibility India has built with its trade partners. He said the country negotiates from a position of confidence while remaining candid about its constraints.

Consultations and investment flow

Goyal noted that trade negotiations involve discussions with relevant ministries, industry representatives and other stakeholders, which has helped avoid public protests over recent agreements.

He also expressed confidence that the agreements with the US and the EU would boost venture capital inflows into India, strengthening the country’s investment landscape.