NEW DELHI: On Friday, Finance Minister Arun Jaitley said that the ongoing trade war may have a positive effect on the country, as it will gradually open opportunities for India in order to come up as a bigger trading and manufacturing base.

Mr Arun Jaitley while addressing the annual session of PHD Chamber of Commerce revealed that it is obvious that the ongoing trade will “adversely affect” India but after a time it will open doors for the country to grow at a fast pace.

“The trade war initially created instability but eventually may open up greater markets. They will open up India as a bigger trading and manufacturing base and, therefore, we must closely watch the situation as to when the challenge turns into an opportunity,” Mr Jaitley said in his video conference address.

On this, various experts said that the trade war between the US and China may end up making Indian products, like machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products, competitive in the US markets.

The rising oil prices which are a result of the trade war is not less than a challenge for the economy of the country, as India is 81 per cent dependent on imports in order to fulfill the needs of the oil.

As per the reports, India being the third-largest importer of crude oil is at the verge of a threat to the economy of the country. The ongoing trade war between the US and China has favored rising international crude oil prices. Brent has reached $80 per barrel from $71 since the last month.

“Not withstanding these challenges, I’m quite certain that in the days and years to come, there are great opportunities for India in order to grow. While free trade is allowed the emphasis also has to be on the ethics of the business. Those who should be paying taxes must be paying taxes and the taxpayers should not be burdened with those who evade taxes. Therefore, one of the most ethical practices has to be to bring in those who evade taxes within the tax net,” the Minister said.

Arun Jaitley while addressing the annual session of PHD Chamber of Commerce said that ‘it will pay to be ethical’. He said that ethical practices should be followed in the country and the government is trying to introduce ethical culture in the country. Indian businesses should also encourage such culture in the country, the minister added.