Tariff Impact On GDP Not Significant, Says Piyush Goyal

The impact of US tariffs on India's gross domestic product will not be significant, Union Commerce and Industry Minister Piyush Goyal said on Tuesday, while speaking at the NDTV Profit GST Conclave.

The minister's remarks come at a time when India's exports to the US—a significant export market—have come under the cloud due to a total of 50% tariffs imposed by the Donald Trump-led administration.

Goyal, while addressing the concerns related to the tariff impact, stated that India’s total exports account for only about 10% of the country’s GDP. The economy is not heavily dependent on exports since imports are comparatively higher, he pointed out.

Additionally, the minister mentioned that the exports impacted by the tariffs account for only 1% of the GDP. Even within this, the actual value of affected exports is minimal. Analysing by sector, jewelry exports contribute only around 3–4% at most, with 46 million out of 13 million impacted, and other sectors are similarly limited.

The minister elaborated that only three sectors — textiles, garments, and leather products — would experience a slightly significant impact. Leather exports may be affected by around $2 billion and gems and jewelry by around $1 billion at most, he said.

When asked about how households reacted to GST rate cuts, Goyal said every household is discussing what to buy on Sept. 22, highlighting the enthusiasm for spending triggered by lower tax rates.

On India's potential to attract global investments, Goyal pointed out that no other country produces 2.3 million STEM graduates annually, half of whom are women, and that India’s average age is 28.4, poised to stay under 30 for the next three decades.

Agreements with countries such as Mauritius, the UAE, Australia, the UK, Switzerland, Norway, and Iceland would facilitate investments and strengthen partnerships.