US tariffs, supply chain disruptions have opened new markets: Gujarat CM

New Delhi: Gujarat chief minister Bhupendra Patel views the slew of free trade agreements (FTAs) signed by India with the UK, European Union and several other countries as a "positive development" that will benefit his state enormously. He is unfazed by the disruption in global supply chains caused by the US-Iran war and the Russia-Ukraine conflict, seeing the situation as an opportunity to explore new markets for trade and an indicator of the need to move towards green energy.

Speaking to ET on the sidelines of the curtain-raiser event for the 'Vibrant Gujarat Global Summit-2027' held here on Monday, Patel exuded confidence of attracting impressive investments from both domestic industry leaders and foreign investors, citing policy continuity and a stable government over the years. He emphasised that the BJP's victory in the recent local body elections and the assembly by-election in Gujarat confirmed the strong support for his party, which he feels will secure another term in the state elections slated for late 2027.

Asked how he looked at the FTAs signed by India and their likely impact on Gujarat, the CM said his visit to the US and Canada in August had yielded positive results, with industry leaders there viewing India as a country with high potential for business in semiconductors, artificial intelligence and data centres, along with continued growth in traditional trade relations.


Patel said the FTAs with the UK and EU would benefit Gujarat and maintained that there had been a positive response from industry leaders, including NRIs.

On the disruption in global supply chains due to the blockade of the Strait of Hormuz and the ongoing conflicts between Iran and the US as well as Russia and Ukraine, the CM said the impact would not be significant. "Gujarat has been moving towards more usage of EVs, renewable energy, cow-dung gas.... We are working on green growth and more use of electricity," Patel said.

Even on the high tariffs imposed on India by US President Donald Trump, the Gujarat CM sees a silver lining. "I feel in the long run, it will benefit India as it has led us to explore markets and trade with other countries," he said.

The Gujarat CM held an interaction with industry leaders on Monday to discuss investment potential in the state. He also met scores of diplomats and heads of missions in India to apprise them of foreign investment opportunities in Gujarat. He maintained that they expressed satisfaction with the response of his administration to their past attempts at setting up projects in the state. Speedy, glitch-free approvals for projects and strong road infrastructure, rail and air connectivity are among the USPs of the state, he underlined.

The MSME sector has also grown exponentially in Gujarat, Patel said, claiming there are 27.9 lakh units, a jump from around 1.5 lakh in 2003.