Opportunity for India to be driver of global growth: Arun Jaitley

  • HT Correspondent, Hindustan Times, New Delhi
  • Updated: Aug 25, 2015 23:56 IST
Union Finance minister Arun Jaitley speaks during the launch of the State Bank Buddy - A Mobile Wallet at SBI Tower in Mumbai, India, on Tuesday, August 18, 2015. (Photo by Arijit Sen/ Hindustan Times)

Moving to calm rattled investors, the government on Tuesday said domestic macroeconomic indicators were strong and there was no need to panic.

Low crude oil prices and the commodity slump would benefit India, a net importer of both, finance minister Arun Jaitley said.

China, which contributes 50% to global growth, was switching from manufacturing to services because of the changing dynamics, he added.

“Their low-cost manufacturing products were not selling to that extent... they had built surplus capacity and have not been able to serve. They are trying to switch from export-oriented economy to consumer-centric economy,” Jaitley said on the sidelines of a function organised by the Society of Indian Law Firms.

The finance ministry is likely to begin consultations with stakeholders, including the private sector, to assess the current situation and put in place a mechanism to attract investments.

Reiterating that the crisis presented an opportunity to India, which could become the driver of global growth, Jaitley said: “The world was being shouldered by a powerful engine that does not seem to be running fast and it now requires alternative engines.”

Meanwhile, analysts said rate cuts in China are likely to provide some relief to India. “This is good news as the Chinese economy would also be beneficial for India as it keeps the global economy stable and growing,” said Soumya Kanti Ghosh, chief economic adviser, State Bank of India.

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