Indian minister Piyush Goyal responds to criticism from the opposition regarding the state of the Indian economy.
In a recent address, Piyush Goyal, India's Minister of Commerce and Industry, highlighted several key factors to defend and project the strength of the Indian economy in 2025.
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. Goyal emphasized that India is currently the fastest-growing major economy globally, expected to sustain around 6.4% growth in 2025 and 2026 according to IMF estimates. From being the 11th largest economy less than a decade ago, India has risen to the 5th largest and is projected to become the third largest economy in the world within a few years.
Goyal credits extensive reforms and the hard work of farmers, micro, small and medium enterprises (MSMEs), entrepreneurs, and industrialists as foundational for India's growth trajectory. The IT sector's capacity to innovate and adapt, demonstrated during the Covid-19 pandemic, has been a key driver of job creation and productivity gains.
India's economic resilience is evident in its foreign exchange reserves, which are sufficient to cover around 11 months of merchandise imports. As of late June 2025, India's foreign exchange reserves reached US $702.8 billion. However, recent drops in reserves, such as the dip to around US $688.9 billion by early August 2025 due to strategic Reserve Bank of India intervention, have been met with strategic responses.
Goyal also defended the Indian economy by highlighting strong foreign exchange reserves despite recent drops. Inflation in India was 2.82% in May 2025, indicating a stable economic environment.
While open to global trade, India prioritizes protecting its sovereignty, farmers, workers, entrepreneurs, exporters, and the industrial sector. This is evident in India's responses to external trade pressures such as the 25% US tariff and penalties linked to India’s trade with Russia. Goyal emphasized that India will never compromise on economic priorities and national interests despite external challenges.
The Indian economy is seen as a bright spot on the global stage by international institutions and economists, underscoring its increasing economic stature. With a population of 1.4 billion, a large share of young and skilled individuals, India is an attractive prospect for international investors.
In addition, Goyal highlighted ongoing negotiations for new trade agreements with partners including the UAE, UK, EU, US, Australia, the EFTA bloc, Chile, Peru, and New Zealand. These agreements are expected to further boost India's economic growth and integration with the global economy.
In summary, Goyal defends the Indian economy in 2025 by underscoring its rapid growth, economic reforms driven by diverse stakeholders, resilience in the face of international trade tensions, and its ascent toward becoming the world's third-largest economy. The Indian economy's strong fundamentals, growing workforce, and active trade diplomacy position it for accelerated growth in the evolving global order.
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