Admitting that there were still a number of regulatory and taxation issues in India, Prime Minister Narendra Modi on Tuesday tried to hard sell the country’s business potential to Singapore’s corporate community and
assured that he will do the hand-holding when they come to India.
“In the past few months, the interest of
foreign investors in India has gone up tremendously. However, there
were a number of regulatory and taxation issues which were adversely
impacting on their sentiments. We have taken very decisive steps to
remove many of the long-pending concerns,” Modi said.
He was addressing the Singaporean business community at the India-Singapore Economic Convention here in the city-state.
Referring that IMF chief Christine
Lagarde has recently said that India is a bright spot in the global
economy, Modi said: “I did not want to wait for that brightness to reach
to you on its own. Hence, I am here. I am here to invite you to India
in a bigger way. I have also come to assure you that I am there to
carefully hold your hands.”
Modi was hopeful that the much-awaited goods and service tax regime will roll out from 2016.
He said India’s growth rate was 7.3 percent last year and the World Bank has projected even better growth this year.
“Indian economy is the fastest growing
economy among major countries. We are also working hard that the
benefits of this growth reaches to the common man.”
Modi observed that Singapore has emerged
as the second largest source of foreign direct investment (FDI) in
India. “Outward Indian FDI to Singapore has also increased in recent
times. Singapore is now one of the top destinations for Indian
investments.”
To take the partnership further, Modi
said: “You have the habit of precision; India has the scope for
expansion. You are fond of going vertical; India’s development is both
vertical and horizontal. You are an exciting incubator; India is a vast
laboratory. Thus, Singapore and India can work together in many
promising areas.”
He also spoke of the potential of his
pet projects like Digital India, Skill India and Start-up India
Campaign. He also highlighted the various reforms that his government
has taken.
“We are working hard to make sure that
our tax regime is transparent and predictable. We are also keen to see
that genuine investors and honest tax payers get quick and fair
decisions on tax matters. To this objective, we have already made a
number of corrections,” the prime minister said.
Modi said FDI inflows to India have gone up by 40 percent compared with previous year’s corresponding period.
Pointing out that the India was setting
up a National Investment and Infrastructure Fund, Modi said: “We are
also coming up with Tax Free Infrastructure Bonds with a view to broaden
the corporate bond market. This will also provide long term finance for
infrastructure.”
“For infrastructure, we have also
decided to launch rupee bonds in some countries. Singapore could be
among them. We are quite eager to work with Singapore in this regard.”
He also said that in the last 18 months
of the National Democratic Alliance-run government, reforms were
happening in a “big way” and were now reaching to the last mile.
