By NewsGram Staff Writer
New Delhi: Prime Minister Narendra Modi on Tuesday urged India Inc to use the current opportunity offered by global turmoil as an advantage and keep its investment flow going. He said that this situation must not be seen as gaining from someone’s pain.
“The prime minister said that somebody’s pain shouldn’t be our gain. Instead, we should make our own efforts domestically to take up the opportunities from the current global situation,” Confederation of Indian Industry president Sumit Mazumdar cited him as saying at a meeting here with union ministers, corporate heads and economists to discuss the global markets’ turmoil sparked off by the Chinese economic slowdown and attendant opportunities for India.
“Our economic foundations are strong, that is why we have not been affected by recent Chinese events. However, the prime minister told us that in this situation we should, as an industry, also show some risk-taking ability,” he told media persons after the meeting.
The meeting, that lasted over three hours, discussed the global situation that impacted India economically like a possible hike in the US Federal Reserve rate, the world powers’ nuclear deal with Iran contributing partly to cheaper oil and the way the Chinese slowdown opens up opportunities.
Finance Minister Arun Jaitley remarked that India was transiently impacted by recent events in China. He further added that the global situation instead presented an opportunity for the country as it is a net importer of commodities and oil is in free fall.
“The main thrust of the meeting was that since India is relatively touched little except for a transient impact on the markets, it should therefore strengthen its domestic economy so that the larger benefits of the global economy may come India’s way,” he said.
“Being a net importer of commodities globally, the low oil prices are an opportunity for us,” the finance minister added.
Global crude oil in free fall touched the $40-a-barrel mark in trading late in August, having already dropped under $50 for the second time this year from the level of over $100 last year.
“The general consensus was that the growth of emerging economies is all slowing down, except that we (India) are growing at seven percent. So how can we take advantage of this opportunity (of slowdown elsewhere),” said Mazumdar after the meeting.
“The prime minister said this is an opportunity for us to take advantage of and invest. Cost of capital is too high but I don’t know how many people can go ahead to take risk and invest… many of us raised the issue of interest rate,” said Federation of Indian Chambers of Commerce and Industry (Ficci) president Jyotsna Suri.
“The Chinese slowdown means that for India, which has a lot of untapped potential in infrastructure, the costs of creating it are going to come down with lower input costs like steel and cement,” said Subramanian.
With inputs from IANS