New Delhi: Finance Minister Arun Jaitley on Friday said that the global trade war has created “initial instability” but will push India onto the forefront as a trading and manufacturing base.
As per reports, the trade showdown between the United States of America and China is likely to make Indian machinery, electrical equipment, vehicles and transport parts, chemicals, plastics, and rubber products competitive in the American market.
In a video conference speech to the annual session of PHD Chamber of Commerce, Jaitley said, “The trade war initially created instability, but eventually may open up greater markets. They will open up India as a bigger trading and manufacturing base and, therefore, we must closely watch the situation as to when the challenge turns into an opportunity.”
Rising oil prices
- He further said that rising oil prices is major concern for the economy, as India is a net importer of crude oil.
- India is the third-largest importer of crude oil, and rising international crude oil prices are inflating domestic transport fuel rates in a strong demand environment. Brent, the benchmark for half of world’s oil, climbed to $80 per barrel from $71 in the last five weeks.
‘Indian businesses should encourage ethical culture’
- “Notwithstanding these challenges, I’m quite certain that in the days and years to come, there are great opportunities for India in order to grow,” he said.
- Asking businesses to be ethical, Jaitley said the Insolvency and Bankruptcy Code (IBC) will shut the doors on “fly-by-night” operators.
- “While free trade is allowed the emphasis also has to be on ethics of the business. Those who should be paying taxes must be paying taxes and the taxpayers should not be burdened with those who evade taxes. Therefore, one of the most ethical practices has to be to bring in those who evade taxes within the tax net,” he said.
- “It will pay to be ethical – that is the kind of culture we are trying to introduce and that is the kind of culture Indian businesses should encourage,” he said.
(With inputs from PTI)