Modi Promises Stable Tax Rules To Investors

Prime Minister Narendra Modi on Sunday night promised a welcoming business environment to foreign investors with a "predictable, stable and competitive" tax regime in India.

 

Inaugurating, along with German Chancellor Angela Merkel, the Hannover Fair in which India is a partner country, Modi said his government is "removing unnecessary regulations and simplifying our procedures" to make it easy for doing business in the country and enable foreign companies to participate in the "Make in India" programme.

 

He said the task of turning around the systems in India is "huge" and will not be completed overnight but stressed that the government is firmly moving in that direction and it will be done.

 

"Today, I come to seek German partnership in my own mission to open up India's seamless economic potential. India is open and ready to embrace the world," he said addressing the Hanover gathering of top business leaders from Germany and other parts of the world.

 

Citing his travels around the world, Modi said he has seen "a new level of interest" in building partnerships of trade, investment and innovation in India.

 

"It mirrors the surge of hope in our own people and industry; the new tide of expectation in our 800 million youth - for opportunities and progress. And, if we want to fulfil the dreams of our youth, we must turn our industry into a manufacturing hub for the world and an engine for employment at home. And, we must equip our youth with the skills to meet the needs of our nation and the demands of the globalised world," he said.

 

Inviting investments and technology, the prime minister said, "We are using digital technology to eliminate multiple approvals and endless wait. We will guide you and walk with you in your projects. We have set up 'Invest India' and country desks in it that will be networked to the states. We will nurture innovation and protect your intellectual property." 

 

"There were institutions in India that seemed beyond scrutiny. Well, they no longer are. We are reforming institutions in ways that has not happened in decades. We are building a tax regime that is predictable, stable and competitive. We will now address the remaining uncertainties.

 

The Goods and Services Tax is a long needed revolution that is becoming a reality," Modi said.

 

"My message to you (foreign investors) is this: You will find environment that is not only open, but also welcoming. We will make it easy to do business in India. And, we will always be eager to listen to your feedback," the prime minister said.

 

Merkel, who led her country out of economic recession, responded by saying that she wanted not only Germany companies to participate in "Make-in-India" but also "Make-in-Germany" in which Indian companies could participate.

 

With regard to Modi's assertion about improving conditions for business in India, she said the two countries will have inter-governmental talks later this year when "stock" can be taken of whether the "problems" have been addressed.

 

"India and Germany need to change ways of doing business," the Chancellor said.

 

She said the good volume of trade of 16 billion euros is a "good point" to start.

 

Observing that France, from where Modi came, was also keen to do business with India, Merkel told the German business leaders, "I know you have competition but more the competition, better you get." 

 

Modi earlier said, "For us, the highest priority is creating world class infrastructure. We have made a sharp increase in public investments. We have established a National Infrastructure and Investment Fund and a new institution for integrated development of this sector." 

 

"We are launching attractive new financial instruments for long term funds. We seek to fuel our growth with the cleanest and most efficient use of energy," Modi said.

 

He said his government has set a target of 75 giga watts of new capacity for renewable and clean energy in the next seven years.

 

"It is a challenging goal - yes; but, important to pursue," the prime minister said.

 

Earlier in France, Modi said on Friday he had ordered 36 "ready-to-fly" French-made Rafale fighter jets to modernise the country's warplane fleet.

 

Showing support for the "Make in India" initiative, aircraft manufacturer Airbus said on Saturday it is ready to manufacture in India as Modi visited its facility in Toulouse.

 

From Germany, Modi is travelling to Canada for a two-day visit, the first bilateral visit to the North American nation by an Indian prime minister in 42 years.

 

(Agencies)