Daijiworld Media Network – New Delhi

New Delhi, Sep 9: Union Commerce and Industry Minister Piyush Goyal on Tuesday downplayed concerns over the impact of steep US tariffs on India’s economy, saying the effect on GDP would be “insignificant.” He was speaking at the NDTV Profit GST Conclave.

The Donald Trump-led administration has imposed tariffs of up to 50% on Indian goods, raising worries over India’s exports to its largest trade partner. Goyal clarified that exports make up only 10% of India’s GDP, and of this, the goods hit by tariffs account for barely 1% of the GDP.

“India’s economy is not heavily dependent on exports. Imports are comparatively higher. Even within the affected exports, the actual value is minimal,” Goyal said.

The minister highlighted that only three sectors—textiles, garments, and leather — would feel a noticeable effect. “Leather exports may be impacted by around USD 2 billion, while gems and jewelry could face a maximum hit of USD 1 billion,” he noted.

On the Goods and Services Tax (GST), Goyal said households were already responding positively to rate cuts. “Every household is discussing what to buy on September 22,” he remarked, referring to the boost in consumer enthusiasm.

Turning to investments, the minister underlined India’s demographic and educational strengths, pointing out that the country produces 2.3 million STEM graduates annually, nearly half of them women. With an average age of 28.4 years—set to remain under 30 for the next three decades—India offers a young, skilled workforce attractive to global investors.

Goyal also mentioned trade agreements with Mauritius, the UAE, Australia, the UK, Switzerland, Norway, and Iceland as key steps to strengthen partnerships and facilitate fresh investments.