'Broke back of Indian manufacturing': Piyush Goyal says FMCGs in India were victim of low-quality imports

Union Commerce and Industry Minister Piyush Goyal said that the fast-moving consumer goods (FMCGs) sector in India has been severely impaired by the indiscriminate low-quality import due to which India and Indian consumers have suffered. He attributed this situation to imports from a "particular geography" causing a rise in trade deficit between 2004-2014. He did not specify which geography he was hinting at. Goyal was speaking at the inaugural session of MASSMERIZE 2023, a dialogue between the government, retail, FMCG and e-commerce sector organised by the industry body FICCI.  

Goyal said, “FMCGs have been a victim of indiscriminate low-quality imports because of which India and Indians suffered. Our imports from one geography led to an increase in the trade deficit between 2004-14. It broke the back of Indian manufacturing.” 

The minister also spoke about how bringing back manufacturing to India again was one of the big focal points for the Modi government. The Union Minister added that the Central government has been able to curb the decline of the sector, adding that all stakeholders, including the consumers, have to work together to take the sector to even greater heights. 

Goyal further explained and said that Indian players need to recognise the importance of quality and the government is also working to introduce quality standards in a big way. He stated, “Government is working to introduce quality standards in a big way to help out manufacturing stand against irrational competition, increase the sale of production and become more competitive.”

He also talked at length about initiatives such as an open network for digital commerce (ONDC) and free-trade agreements (FTAs). Goyal said that ONDC will help small retail companies survive the “onslaught of large tech-based e-commerce companies.”

He added that with ONDC, the government aims to encourage small companies, and start-ups to integrate into the e-commerce ecosystem. Goyal underscored: “Like UPI democratised payment systems, ONDC will democratise the benefits of e-commerce.”

Coming to FTA discussions, the Union Minister said that the central focus in on the opportunities India offers. He stated, “Going forward, consumption will increase, with demand for good quality, sustainable products delivered smartly, that meet international standards at competitive prices.”

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