HANNOVER: Wooing German investors, Prime Minister Narendra Modi promised to make “corrections wherever required” in rules and regulations to make India a global manufacturing hub asserting that India is now a “changed” country.
He also told top German businessmen and industrialists not to go by “old perceptions” but to come to India and feel the change in the regulatory environment.
Modi’s pitch for attracting foreign investors to boost his ‘Make In India’ initiative came at the inauguration of the Indo-German Business Summit at the Hannover Fair where he and Chancellor Angela Merkel opened the India Pavillion.
“India is now a changed country. Our regulatory regime is much more transparent, responsive and stable. We are taking a long-term and futuristic view on the issues,” he said.
“At the end, it is my advice to you to come and feel the change in India’s regulatory environment. Please do not go by old perceptions.
“Make In India is a need…We are confident that our journey to make India a global manufacturing hub cannot be stopped that too by our own rules and regulations. We must and will make corrections wherever they are required,” Modi said to the cheers of the gathered audience that included top CEOs of companies in both the countries.
“Once again I invite you to India. I assure you of my personal attention in your success while you are in India,” he said.
Earlier, inaugurating the India Pavillion, Modi said India has a huge potential to become a global manufacturing hub and invited the whole world to partner with the fastest growing economy in this endeavour.
Responding to the Prime Minister’s remarks, Chancellor Merkel said Germany is trying to forge a very close partnership with India.
“I think Hannover Fair would allow us to turn a new chapter in our relationship. Let me assure you that Germany stands ready to develop this partnership,” she said.
Modi said under his government several steps have been taken up to improve the ‘Ease of Doing Business’ in India, including reducing complicated procedures, while taking up on a war footing simplification of forms and formats.
In order to attract FDI, the Prime Minister said his government has rationalised a number of issues which were bothering foreign investors.
“We do believe that FDI is important and it will not come in the country without a globally competitive business environment…We have removed lot of regressive taxation regimes.
“In our very first Budget, we said we will not resort to retrospective taxation. And if such issues do arise, they will have to be reviewed at the highest level,” Modi added.
Stating that even legacy issues were being addressed, the Prime Minister said: “We have taken bold steps of not dragging the litigation in a few cases where we felt that the steps of the previous government were not on right lines.”
Citing example of his government’s decision to defer implementation of GAAR for two years, he said: “We are constantly working to improve the business environment further. We are trying to introduce an element of transparency and predictability in taxation system.”
Fast tracking approvals in industry and infrastructure, including environmental clearances and extending industrial licences, delicencing of defence items, and simplification of cross-border trade were also highlighted by Modi.
“Such measures have helped in building up an enhanced investor confidence. The sentiments for private investment and inflow of foreign investments are positive. FDI inflows have gone up by 36 per cent during April-2014 and January-2015 against the same period in previous year,” he said.
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