The impending recession in the West offers an opportunity for India to attract global investments looking to diversify risks, India's Finance Minister Nirmala Sitharaman told industry on Friday.
As per the minister, the time is ripe for Indian industry to work on strategies to draw “those manufacturers to India.”
“The suspected long-drawn recession which is likely to affect [the] West will not just impact your exports but it gives us an opportunity [to attract] many of the investments which are now looking for a different place from where the activities can continue to happen,” the minister emphasized.
Sitharaman, who will present the country’s annual budget in February, infused confidence in the industry, saying an additional 140 million middle-income households and 14 million high-net-worth individual households will provide massive growth potential in the economy by 2030.
As part of its efforts to lure foreign investment, Delhi is offering production-linked tax incentives to firms agreeing to set up manufacturing units in the country.
Analysts see this as a measure to invite the US-based firms to dislocate their units in India from China amid trade tensions between the top two economies.
US policymakers recently downgraded their outlook for economic growth in 2023 from September’s 1.2 percent to 0.5 percent.
They have also predicted a massive jump in the unemployment rate next year up to 4.6 percent from 3.7 percent currently, owing to a slowdown in consumer demand and industrial activities.