Finance minister Arun Jaitley pitches for overseas asset acquisition to cut energy imports

NEW DELHI: India should grab the opportunity offered by increasing cost of production in China to pitch itself as a global manufacturing hub, finance minister Arun Jaitley said, while pitching for acquisition of assets overseas in a bid to cut dependence on energy imports.

"Wages in China have gone up. That part of the world is now becoming costlier. Can we, therefore, create a worldclass infrastructure in India," Jaitley said Friday, speaking at Sri Ram College of Commerce, his alma mater.

"Can the cost of our capital not be reasonable? All the issues of efficiency, quality improvement, that’s where the opportunity awaits us in creating jobs," he said. "This is the best possibility for removing poverty in India."

The minister said the situation in advanced economies, combined with the fact that India is set to take off, has made the country an attractive investment destination. The government is trying to create a conducive environment, both in terms of taxation and ease of doing business, as investments won't come just by opening doors, he said.

The government, he said, is focusing on "quick and effective decision making", as the country needs huge amount of investments.

Need to cut dependence on energy imports

Speaking at Urja Sangam, an international energy summit, Jaitley said the government will have to make efforts to rapidly reduce dependence on energy imports as suggested by PM Narendra Modi.

"...so our own exploration programme, within resource available, our own efforts for acquisition of assets internationally are all areas we will have to look at...," he said.

Jaitley also expressed hope that the situation in the Middle East will improve and oil prices will stabilise. He said the government is undertaking some of the most significant taxation reforms.

Rich need to give up subsidy

Jaitley also hoped that the moral appeal to well-off people to give up subsidised cooking gas would succeed.

"...India will have to take a decision as to distinguish between those who can afford to pay and those who cannot afford to pay. And those who cannot afford to pay must get the benefit of state’s support," he said. "I have repeatedly asked my colleagues in Parliament at least on more than one occasion as to whether they and I deserve to have subsidies transferred to our bank accounts and not one has been able to stand up and answer in the affirmative."

Jaitley said easing of these pressures on the exchequer will help in directing resources towards exploration and refining and spend surplus resources on subsidising weaker section of the society.

Speaking at the Urja Sangam, Modi said Rs 100 crore has been saved because of 2.8 lakh people giving up subsidised LPG. "This money could be used for schools and providing medical facilities. I appeal to those who can buy LPG at market price, to please do not take subsidised LPG."

More use of plastic money

At a third event, Jaitley said that with growth of economy, more people should be incentivised to use plastic money such as credit cards and Ru-Pay cards, or cheques and other negotiable instruments.

"They should be discouraged to use hard currency or unaccounted money," he said at the Foundation Day of Security Printing and Minting Corporation of India.