Finance Minister Nirmala Sitharaman on Friday asked Indian industry to work out strategies as to how businesses operating in developed countries can look at India as a production or sourcing hub amid recession fears in the western countries.
India has brought in a lot of facilitation and tweaking of rules to attract foreign investment into India and is also engaging with industries who want to co-locate in the country, the minister said.
"As much you are preparing yourself for a long-drawn recession in the Western world, in the Developed world, I think it is also the best time for you to work out strategies for drawing those manufacturers from there to India.
"Even as they are headquartered there, it might be useful for them to think of sourcing many things from here and producing from here at least for markets in this part of the globe," Sitharaman said at an event.
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She said the suspected long-drawn recession, which is likely to affect Europe, is not just going to affect exports by Indian businesses.
"It gives an opportunity for many of the investments which are there, which are now looking for a different place from where activities can continue to happen," she noted.
Asking the industry to look at innovations by startups and find ways to scale them, the minister said India will continue to focus on manufacturing and newer areas of services.
As the world transitions into clean energy, the domestic industry could face higher tariffs by the developed countries, Sithraman said.
She also asked India Inc to tell the government how climate change is affecting them and suggest ways to reduce the burden of cost falling on them.
The industry should prepare itself for tariff walls by some countries in the name of climate change, the minister added.
Talking about the upcoming Budget, she said it would follow the spirit of earlier Budgets to prepare India for the next 25 years.