NEW DELHI: Nirmala Sitharaman, the finance minister, urged the Indian industry on Friday to be ready for "tariff walls" that may be imposed on Indian exports, particularly steel items, by countries undergoing green transitions.
"Many countries are placing tariff walls on goods coming from other countries in order to finance their transition to a greener economy. We may encounter this tariff barrier or fee for the green transition if we export steel to such locations. The Indian industry needs to adjust as necessary "She said this while speaking at the annual general meeting of the business group FICCI (AGM).
Further noting that many European nations were trying to leave China and establish manufacturing facilities elsewhere, Sitharaman said that India should look to seize this opportunity and position itself as a credible manufacturing base for Europe.
She exhorted the sector to develop plans for luring manufacturing to India.
The minister stated that during India's G20 leadership, the government would promote the nation as a desirable location to investors from other G20 countries, particularly for manufacturing.
According to estimates from the World Economic Forum, there will be 140 million middle-income households and 14 million high-net-worth households in India by 2030, Sitharaman said, adding that the country's economy has remained resilient despite the fluid geopolitical environment.
She emphasised that this demonstrates the scope of India's future growth.
The finance minister recommended that the industry concentrate on accelerating technical advancement in this situation by utilising the strong framework offered by the government.
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