Trade war will help India emerge as bigger trading, mfg base: Jaitley


Team Udayavani, Sep 28, 2018, 3:01 PM IST

New Delhi: Finance Minister Arun Jaitley on Friday said the ongoing global trade war may have created “initial instability”, but will gradually open up opportunities for India as a bigger trading and manufacturing base.

Calling on businesses to adopt ethical practices, Jaitley said that entities should pay their due share of taxes as the Insolvency and Bankruptcy Code (IBC) will shut doors on ‘fly-by-night’ operators.

Speaking at the annual session of PHD Chamber of Commerce, Jaitley said some global trends do “adversely affect” India, but going ahead they will open up avenues for the country to grow faster.

“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,” Jaitley said in his video conference address.

Experts say that the ongoing trade war between the US and China could make Indian products, like machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products, competitive in the US markets.

Jaitley said the rising oil prices, too, pose a challenge for the economy, since India is a net importer of crude oil. India is 81 per cent dependent on imports to meet its oil needs.

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 USD 80 per barrel from USD 71 in the last five weeks.

“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,” the minister said.

Asking businesses to be ethical in their practices, Jaitley said post the IBC, doors will be shut on “fly-by-night” operators and those with ethical practices will find a much greater opportunity to continue their businesses.

“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,” the Minister said.

The IBC, Jaitley said, has imposed a new ethics on Indian businesses when you take money from lenders you have to service the debt, it can’t be that the lenders spend sleepless night after lending money to Indian businesses.

“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. 

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

After Yogi’s ‘batenge, katenge’ slogan, PM pitches for unity with ‘Ek hai, toh safe hai’ message

“Coming soon.. 2025”: KL Rahul and Athiya Shetty announce first pregnancy

Mangaluru: Unauthorized bus stops at signals fuel traffic woes and safety concerns

SC notice to Karnataka, DK Shivakumar on CBI plea against withdrawal of consent by state govt

Will remain active in politics till my last breath: JD(S) patriarch & ex-PM Deve Gowda

BJP calls Congress govt ‘laughing stock’ as ‘samosa politics’ heats up in Himachal

Related Articles More

NSE, BSE to be closed on Nov 20 for Maharashtra assembly polls

Sensex, Nifty fall for 2nd day on FII selling; RIL, ICICI Bank major drag

Sensex, Nifty fall over 1 pc, snap two-day rally ahead of US Fed interest rate decision

SC orders liquidation of grounded air carrier Jet Airways’ assets

Home-cooked meals become dearer in October on costlier vegetables

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

Use Carnatic music to promote Kannada language: Nirmala Sitharaman

Udupi: Car collides with bike; Rider injured

UP women’s body proposes men shouldn’t tailor women’s clothes or cut their hair

NSE, BSE to be closed on Nov 20 for Maharashtra assembly polls

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.