Will prepare ‘blueprint’ for companies looking beyond China: Nirmala Sitharaman

Cornelia Mascio
Ottobre 22, 2019

"I'd certainly be doing that..."

"The finance ministry said that the focus might be on some particular industries like electronics, lithium-ion batteries and semi-conductors, industries where India and China have" common capacity ecosystem construction". Sitharaman, who briefly spoke to United States Treasury Secretary Steven Mnuchin about the trade deal at the International Monetary Fund headquarters, said she was hopeful that the discussions would be completed soon.

Finance Minister Nirmala Sitharaman has said the ongoing trade wars and protectionism have generated uncertainties and will ultimately impact the flow of capital, goods and services.

In her intervention during International Monetary and Financial Committee (IMFC) Plenary Session, Union Finance Minister Nirmala Sitharaman said that the global economic risks and imbalances reinforce the need to strengthen global co-operation at the multilateral level, besides governmental initiatives.

"I will determine those multinational companies... that are going from China or who likely are considering it", she explained, and added,"I shall make a blueprint by which I shall approach them and set forward to them as to why India is a far more safer destination and make every endeavor to invite them to India".

"That could either aggravate the situation or probably just influence at some level". There are a lot of companies that are looking at relocating outside china for various other reasons.

India plans to come up shortly with a "blueprint" to aggressively court worldwide companies either leaving China or taking a part of their production lines elsewhere as their current top destination Vietnam is understood by many to have hit a "saturation" point in labour availability and other facilities.

"I'm allowing that margin already".

Sitharaman argued that companies can not be expected to leave China "lock, stock and barrel" with or without the trade tensions because there is a vast Chinese domestic market to be serviced with its own unique consumption powers and patterns.

"There was one thing very clear that India is still for them (companies), one of the biggest options to consider", she added.

Sitharaman said three or four different names were mentioned by different people but the overall sense was that "countries will have to show extreme caution much before anything is said or moved on this". "They don't have enough manpower to address expansionary programmes of investment", she said.

Ms. Sitharaman gave a clarion call for "concerted action" in the face of global slowdown.

In this context, she emphasized the importance of countries pursuing structural reform measures to counter the growth slowdown.

On the sidelines, she held several bilateral meetings, including with First Deputy Prime Minister and Finance Minister of Russia Anton Siluanov, Finance Minister of the Kyrgyz Republic Baktygul Jeenbaeva, Australian Treasurer Josh Frydenberg and Finance Minister of Maldives Ibrahim Ameer.

Sitharaman also participated in the 100th Meeting of the Development Committee Plenary and stated, "As we draw closer to SDG 2030, India is pursuing both scale and speed of development, through large National missions in a fiscally responsible, sustainable and inclusive manner".

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