Indian Minister Piyush Goyal Speaks in Defense of the Economy Facing Criticism from Opposition Parties
India's economy continued to shine in the final quarter of FY 2024-25, with real GDP surging 7.4% and nominal GDP expanding 10.8%. These growth figures, announced by Piyush Goyal, the Minister of Commerce and Industry, highlighted India's robust economic performance and global competitiveness.
Goyal defended the Indian economy in mid-2025, emphasising that India is the world's fastest-growing major economy and is on track to become the third-largest economy globally in terms of GDP. He highlighted India's rise from the 11th to the 5th largest economy in a few years due to reforms, support to farmers, MSMEs, and industrialists.
Key indicators of India's economic strength include a projected GDP growth of around 6.7% in 2025, making India the fastest-growing major economy worldwide. Goyal's confidence in India’s economic strength implies robust external sector health capable of withstanding external shocks like tariffs.
India's foreign exchange reserves reached US $702.8 billion as of late June 2025. Gold holdings in India's foreign exchange reserves now comprise 12.1% of the total, up from 8.9% a year earlier. This increase demonstrates the country's financial stability and resilience.
The Indian export sector, including pharmaceuticals, engineering goods, textiles, gems and jewellery, and electronics, remains strong despite US tariffs (25-50% on Indian imports). India achieved record exports of approximately US $825 billion in FY 2024-25, with goods shipments over $437 billion. Strategies to mitigate tariff impacts have been implemented to ensure continued growth in this sector.
Goyal asserted India will protect its national interests while negotiating international trade deals, responding firmly to US tariff impositions. He noted countries are restructuring their trade routes and partners, positioning India for emerging opportunities. Ongoing negotiations for new trade agreements with partners including the UAE, UK, EU, US, Australia, and the EFTA bloc, as well as Chile, Peru, and New Zealand, underscore India's proactive approach to global trade.
The IT sector's capacity to innovate and adapt, demonstrated vividly during the Covid-19 pandemic, has been a key driver of job creation and productivity gains in India. This sector, along with India's demographic and economic strength, underpins its growing global economic stature.
Piyush Goyal emphasised multiple indicators, including currency stability, foreign exchange reserves, stock market health, and underlying fiscal resilience, as proof of India's vitality. With strong fundamentals, a growing workforce, and active trade diplomacy, Goyal defends the Indian economy as primed for accelerated growth in the evolving global order.
Despite a dip to around US $688.9 billion by early August, India's foreign exchange reserves are still sufficient to cover around 11 months of merchandise imports. This reserve provides a safety net for the Indian economy, ensuring continued stability even in challenging times.
In conclusion, Piyush Goyal's defense of the Indian economy portrays it as resilient, globally recognised for growth potential, and well-positioned to leverage domestic demand and reforms to overcome external challenges such as US tariffs and geopolitical tensions. The upcoming years are expected to bring a wave of trade deals, increased manufacturing activity under initiatives like "Make in India," and deeper integration with global economic networks, solidifying India's position as a global economic powerhouse.
The Indian Minister of Commerce and Industry, Piyush Goyal, asserted that India's business sector is on track to become the third-largest globally due to strategic reforms and support to various sectors. In financial terms, India's foreign exchange reserves reached US $702.8 billion, demonstrating the country's financial stability and resilience.
