India’s finance minister Arun Jaitley said on Friday (28), that the ongoing global trade war may have caused for an initial instability in the global market, but will gradually provide opportunities for India as a largest trading and production hub.
Delivering a speech at the annual session of PHD Chamber of Commerce in New Delhi, Jaitley said some global economic trends do adversely impact the domestic market, but moving forward, such trends will open up avenues for the country to grow at a faster rate.
India must closely watch the situation in the global market as to when the challenge turns into an opportunity, Jaitley said in his video conference speech.
Analysts opine that the ongoing trade war between the US and China could turn Indian goods, like machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products, competitive in the US market.
Expressing his concern over rising crude oil prices in the international market, Jaitley said increasing crude oil prices also pose a hurdle for the Indian economy, since India is a net importer of crude oil. It depends on imports to meet its fuel needs.
India’s is the third biggest crude oil importer in the global market and recent upward trend in the crude oil prices are inflating domestic transport fuel rates in a strong demand environment. Brent, the benchmark for half of world's oil, surged to $80 per barrel from $ 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 finance minister said.
Piyush Goyal with shadow chancellor Rachel Reeves (centre), Vikram Doraiswami and other officials at the India Global Forum
And , Goyal with Jonathan Reynolds