'India needs to be a low-cost hub for Make in India success'

Stressing on making the most of the favourable low commodity prices, Finance Minister Arun Jaitley said the country will have to become a low-cost manufacturing hub for success of the ‘Make in India’ programme.

Addressing the 57th National Cost Convention here, Jaitley said, as far as the services sector is concerned, India unquestionably has the potential to become a low-cost service provider in the world.

“But are we only going to be satisfied being the back office or also being the global factory?” the finance minister asked.

“If Make in India has to succeed, we actually have to become a low-cost manufacturing hub. And I think there are several global factors which collectively are suiting us,” he said.

The cost of wages in China, he said, is going up and so, India is back in competition. Lower commodity and oil prices are also acting as tailwinds.

“The world has never seen this kind of low price regime. And India, as a net buyer, benefits from this low price regime... it is extremely important at this junction that we fully make use of this global situation,” Jaitley said at the event organised by the Institute of Cost Accountants of India (ICAI).