Written by 8:43 am Europe Economy

As Europe enters recession, India should make way, says FM; ‘Draw manufacturers to India’

Finance Minister Nirmala Sitharaman indicated as Europe is set to enter a phase of economic recession, the Industry should be prepared to invite companies from that region to India. She said that enterprises in the West are likely to scout for places from where commercial activities can be continued. 

On the side of the government, the ground is being prepared even as several changes on the front of ease of doing business have been made, added Sitharaman; Moreover, the government is also interacting with companies that want to locate in India, She said. 

‘Time for drawing western manufacturers to India’ 

“The expected protracted recession in Europe is an opportunity for India”, said the Finance Minister. She also added that the suspected long-drawn recession which is likely to affect Europe is not just going to affect exports. “It gives us an opportunity for many of the investments which are therefore now looking for a different place from where their activities can continue to happen”, the FM said.

Thus companies should initiate working on plans to divert and attract manufacturers based in the western nations towards India, “So, as much as you are preparing yourself for a long-drawn recession in the western world, I would think it is also the best time for you to work out strategies for drawing those manufacturers from there to India,” said Nirmala Sitharaman.

According to the European Commission’s autumn economic forecast, Europe is heading for an economic recession in the last quarter of 2022. “The economic situation has deteriorated markedly and we are heading into two-quarters of contraction,” said EU economy commissioner Paolo Gentiloni at a press conference recently.

Suggestions invited to lessen climate change burden

As the globe continues to struggle against the events triggered by climate change, the finance minister urged the Industry to provide suggestions on the impact of climate change on them and ideas, and suggestions to mitigate the burden on their work. She also stated the world is erecting tariff walls due to fight climate change and the industry should be ready to counter the same. 

IMAGE: PTI

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