Piyush Goyal Warns Industry of Supply Chain Risks Amid Trade Weaponization​

Union Commerce and Industry Minister Piyush Goyal on December 3 called on Indian industries to urgently reassess their supply chains, cautioning that over-reliance on a single geography or supplier could threaten long-term business survival. He emphasized that strategic autonomy and risk mitigation are now crucial for sustainable growth in a volatile global trade environment.

Goyal outlined a dual strategy of enhancing global competitiveness while boosting domestic self-reliance. He stressed the need for self-sufficiency in critical products, saying businesses must identify vulnerabilities in their supply chains and implement measures to secure continuity and resilience for the future.

The minister’s warning comes amid growing Chinese export restrictions on critical minerals, electronics, and capital equipment, creating challenges for India’s manufacturing and export sectors. Goyal urged companies to diversify production hubs and supplier bases to reduce dependency and safeguard against sudden trade disruptions.

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He also highlighted the importance of accelerating domestic manufacturing, targeting an increase from the current growth rate of 9 percent to 12.5 percent. Goyal described this as achievable through coordinated efforts by industry and government, along with modernization and efficient supply chain management.

Finally, Goyal stressed that India must integrate more deeply with the global economy while selectively opening domestic market opportunities. With ongoing trade negotiations with the EU, US, New Zealand, Oman, Peru, and Chile, he emphasized that these agreements would help expand market access and reinforce India’s position as a competitive manufacturing hub.

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