Union Minister Piyush Goyal Details Four-Pillar Framework to Propel India's Export Expansion
Union Commerce and Industry Minister Piyush Goyal has articulated a comprehensive four-pronged strategy aimed at accelerating India's export growth, emphasizing the need for deeper awareness of free trade agreements (FTAs), an uncompromising commitment to quality, enhanced value addition, and the development of robust local export ecosystems.
Expanding FTA Awareness to Grassroots Levels
Addressing a Confederation of Indian Industry (CII) conference on export competitiveness virtually, Goyal stressed that India must take its FTAs "to the grassroots", ensuring that benefits are understood not merely at policy levels but directly on factory floors. He highlighted the necessity for awareness of tariff reductions and market access opportunities to permeate clusters, districts, and MSMEs nationwide.
"We require training of trainers and extensive physical outreach across the length and breadth of India. It is insufficient to merely explain the policy — we must elucidate the profit that emanates from it," Goyal remarked. He noted that when small enterprises comprehend how tariff cuts can enhance product competitiveness abroad or unlock new markets, confidence surges immediately. "This awareness constitutes the inaugural step toward greater utilization of FTA benefits," he added.
Quality as a Non-Negotiable Pillar
Goyal identified quality as the second, non-negotiable pillar of the strategy. "Quality is no longer optional. It serves as the passport to global markets. Standards are not barriers; they function as entry tickets," he asserted, invoking Prime Minister Narendra Modi's ‘Zero Defect, Zero Effect' vision. This emphasis underscores the critical role of maintaining high standards to secure and expand international market access.
Advancing Up the Value Chain
The third pathway involves steadily ascending the value chain. Goyal urged exporters to consistently evaluate whether they can transition from raw materials to finished or branded products. Examples include moving from cotton to branded garments, from PVC to finished auto components, from basic steel to specialized defence or aerospace parts, and from APIs to advanced formulations.
"Value addition is where employment opportunities increase, profit margins improve, and India's global standing strengthens," he observed, highlighting the economic benefits of this strategic shift.
Building Local Export Ecosystems
Finally, Goyal called upon corporate India to assist in constructing local export ecosystems. He encouraged companies and industry associations to consider "adopting" districts, panchayats, or Tier-III and Tier-IV towns to mentor MSMEs and develop backward linkages. "When large firms collaborate with smaller enterprises within the same geography, a district can evolve into an export ecosystem — and that ecosystem becomes a competitive advantage," he explained.
Strategic Trade Agreements and Early Outcomes
Goyal noted that India now enjoys preferential access to markets accounting for nearly two-thirds of global trade. He announced, "Today, we have signed the joint statement launching free trade agreement negotiations between India and the six-nation bloc of the Gulf Cooperation Council (GCC) in the Middle East." Additionally, he is engaging with Chilean counterparts to finalize a "new-age" agreement that would expand access to critical minerals, and negotiations with Canada are anticipated to commence shortly.
The government views this network of trade agreements as a strategic tool to de-risk supply chains through diversified partnerships. Early outcomes are already visible: merchandise trade with Australia and the UAE has doubled since the implementation of respective FTAs, Goyal added, demonstrating the tangible benefits of these initiatives.
