Piyush Goyal urges Indian industry for import substitution, cites examples from Japan, Korea

Union Minister for Commerce and Industry, Piyush Goyal, on Friday, 17 October, called upon Indian businesses to prioritise locally available alternatives to imported intermediate goods, in a bid to support domestic industry and advance the Swadeshi initiative.

Speaking at the 105th Annual General Meeting of ASSOCHAM in New Delhi, Goyal pointed out the tendency of Indian firms to opt for imports even for marginal cost savings, contrasting this with the practices of companies in Japan and South Korea, which favour local suppliers.

He noted that Mahatma Gandhi had first articulated the concept of Swadeshi at an ASSOCHAM AGM, underscoring its historical significance. Goyal added that every dollar invested in India yields output comparable to that in the United States and that the cost of establishing data centres in India is half the global average.

Highlighting the government's efforts to foster innovation, Goyal revealed that work is underway to establish norms for a ₹10,000 crore start-up fund. He emphasised that research and development should not be viewed as ancillary to business, but as its core in a rapidly evolving global landscape.

On trade policy, the Minister stressed the importance of strategic planning around tariffs and negotiations, acknowledging that trade deals often involve compromise and reciprocity.

He cited free trade agreements (FTAs) with Chile, Peru, and Australia as avenues for enhanced collaboration in rare earths, warning against over-reliance on any single country in an era where trade is increasingly weaponised.

Goyal outlined the tangible benefits of India’s FTA with Australia, including the elimination of double taxation, increased employment opportunities for Indians and reduced import costs for coking coal and lentils.

He also hailed the European Free Trade Association’s (EFTA) commitment of $100 billion in investment as a testament to India’s robust intellectual property regime and reputation as a trustworthy investment destination.

Calling for a balanced and structured growth trajectory, Goyal advocated for doubling the size of the Indian economy every eight years.

He cautioned against unsustainable growth, recalling that India’s attempt to accelerate beyond its absorptive capacity following the global financial crisis led to a sharp decline in growth—from a high in 2009–10 to just 4% by 2014.