‘India A Bright Spot In Global Economy’: Piyush Goyal Says Govt Will Act In National Interest After Donald Trump’s Tariff Bomb

New Delhi: 'India is bright spot in global economy' says Commerce and Industry Minister Piyush Goyal on Wednesday during a discussion in the Lok Sabha, hours after the US President Donald Trump criticized India’s trade policies and announced fresh tariffs.    

Piyush Goyal’s Rebuttal in Parliament

Responding to the developments, Piyush Goyal detailed the timeline of US trade actions, stating, “On 2nd April 2025, the US President issued an executive order on reciprocal tariffs... a 10% baseline duty came into effect on 5th April 2025. With this, a total 26% tariff was announced for India. The full country-specific additional tariff was initially set for 9th April 2025 but was later extended till 1st August 2025.”  

He assured that the government is “examining the impact of recent events,” with the Commerce Ministry holding consultations with exporters, industries, and stakeholders. “We will take all necessary steps to safeguard our national interest,” he emphasized, adding that protecting farmers, MSMEs, and exporters remains a top priority.  

Piyush Goyal underscored India’s economic rise, noting that the country has climbed from the 11th to the fifth-largest economy in the world over the past decade. He also said that India will soon become the third-largest economy globally.  

"In less than a decade, India came out of the 'Fragile Five' economies, and it has now become the fastest-growing economy in the world. Based on the hard work of reforms, farmers, MSMEs, and industrialists, we have come in the top 5 economies of the world from the 11th largest economy. It is expected that we will be the third-largest economy in a few years. Today, global institutions and economists see India as a bright spot in the global economy..." he added.

Donald Trump Imposes Penalty On India For Russian Imports On Top of 25 Per Cent Tariffs

US President Donald Trump, in a post on Truth Social, declared a 25% tariff on Indian exports, effective August 1, alongside additional penalties for India’s continued imports of Russian oil and military equipment.

He stated, “Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”

Donald Trump further accused India of being “Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE.”

The new US tariffs come amid longstanding trade tensions, with Trump targeting India’s high import duties and non-tariff barriers. The additional penalties related to Russia trade further complicate bilateral relations, though India has maintained a neutral stance on the Ukraine conflict.  

In a formal statement, the Ministry of Commerce and Industry acknowledged Trump’s remarks but reiterated India’s commitment to a “fair, balanced, and mutually beneficial” trade agreement with the US. Negotiations between the two nations have been ongoing for months.  

As the August 1 deadline approaches, India is expected to calibrate its response while seeking to minimize disruptions to exporters and key industries.  

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