Arun Jaitley blames global factors for Sensex crash, defends domestic indicators

Finance minister Arun Jaitley today blamed external global factors for the market’s crash, while defending domestic factors. He said that external factors are responsible for the current turbulence in the markets, adding that not a single domestic factor has contributed to it. Jaitley was talking at the annual conference of chief Commissioners and DGs of CBEC (Central Board of Excise and Customs).

Arun Jaitley

He said that global markets turbulence has sent a wave across markets for the past few weeks, and Since the markets are integrated, it is obvious that shocks will be felt in India.

More specifically, the said that Yuan devaluation and uncertainty over an interest rate hike by the US Federal Reserve, added to the woes. Jaitley said China’ s currency devaluation has created ripples across the global markets.

He added that the Indian economy needs to be strengthen to meet global challenges like the current one.

On Monday, stock market witnessed the third biggest market crash in the history of the benchmark BSE index. Markets fell markets fell by 1,691.99 points or 6.18%.

The rupee breached the 66 mark against the dollar in early trade, and edged towards the 67 mark on the back of a global turmoil. The rupee has been under pressure since China devalued its currency two weeks back.

Jaitley said that concerned authorities are watching the current situation, and markets will settle down soon.

Jaitley said that Indian economy is in its revival stage and the FY16 budget figures are more realistic than last year, adding that “we stand by the growth projections that BJP has announced this year”. “We have had a series of reforms recently, we have opened up the Indian economy, we have empowered the states more,” he said.

Talking about the Goods and Services tax, he said that all states should have favoured the policy since it will only go on to aid investors.

Today we are faced with multiple challenges, in this situation, ease of doing business and determination to go ahead with the road map becomes important, he added.

Finance Minister Arun Jaitley on Monday said that the nation’s steel sector needs to be strengthened and preserved, as consumption of the product will increase with the Indian economy growing.

Addressing a function here this morning, Jaitley said that adverse global cues in the steel sector are only a transient trend, and India has the strength to withstand global challenges.

He also said that iron ore mining capacity needs to be expanded to bring down raw material prices.

The challenges and crisis in the sector have to be dealt with appropriate solutions, he said, adding that the sector needs to be revived and its non-performing assets which are locked in with banks need to be activated.

Steel and Mines Minister Narendra Singh Tomar said his ministry is committed to promote steel industry and every step will be taken to boost it.

India is the third largest steel producing country in the world.