Finance Minister Nirmala Sitharaman encouraged the Indian industry to establish strategies for how companies operating in developed nations might view India as a production or sourcing hub.
According to the minister, India has made several changes to its laws and regulations to make it easier for international companies to invest there. It is also interacting with businesses that want to locate there.
“As much you are preparing yourself for a long-drawn recession in the Western world, in the Developed world, I think it is also the best time for you to work out strategies for drawing those manufacturers from there to India,” said Ms Sitharaman at an event.
“Even as they are headquartered there, it might be useful for them to think of sourcing many things from here and producing from here, at least for markets in this part of the globe,” she said.
According to her, the presumed protracted recession, anticipated to strike Europe, will impact all exports, not only those made by Indian companies.
“It gives an opportunity for many of the investments which are there, which are now looking for a different place from where activities can continue to happen,” the Finance Minister noted.
She added that India should focus on manufacturing and newer services sector areas.
The minister said India would continue to prioritise manufacturing and more recent service sectors and urged the sector to examine innovations by startups and find ways to expand them.
According to Ms Sitharaman, when the world switches to clean energy, the industrialised nations may impose greater tariffs on the home industry.
She also requested that India Inc. inform the government of how climate change is hurting them and offer suggestions to lessen the financial burden placed on them.
The minister stated that the sector should be ready for tariff walls erected by some nations to combat climate change.
She stated that the 2019 budget would be in keeping with previous ones in preparing India for the next 25 years.