Anurag Singh Thakur, Minister of State for Finance and Corporate Affairs, was addressing the Commodity Participants Association (CPAI) of India’s international convention on ‘Building Indian Commodity Market for Job Creation and Sustainable Development’.
“We can have a detailed discussion on that (CTT reduction) .... We will talk to various departments and take action on that,” he declared.
Narinder Wadhwa, CPAI President, said that CTT was making India one of the most expensive markets to hedge commodity price risk.
MoS Thakur said the development of commodity derivatives market needs to be seen from the viewpoint of the country’s position in the global commodity map as one of the major producers, importers and exporters of commodities.
“Despite that, we are hardly the price makers or the price setters. This needs to change,” he said.
Lately, India became the first country in the world to launch diamond futures due to the large scale of diamond polishing and cutting done here. “This itself is a reflection of the future potential of our commodity markets,” he added. This government has ensured removal of all restrictions on equity brokers to deal in commodities and vice-versa. This is expected to enhance the accessibility of markets to retail participants, he said.
Implementation of GST will provide a further thrust to commodity markets by making physically delivered commodities move faster across States, MoS Thakur said. He also said the government is committed to creating gainful employment opportunities.