Prime Minister said the government was trying to remove the bottlenecks that were affecting growth process. India is a land of immense opportunities, he told the ASEAN business community. Our democratic values and an alert judicial system ensure the safety of your investments. We have set the tone of Governance with a long term vision and an open mind.
We are particularly working to make India the easiest place to do business. He said it is India’s turn now. And we know that our time has come. We are at a take-off stage. I invite you to come and see the winds of change in India, he said. Modi said maximum focus of the government is on building futuristic infrastructure.
By exercising tight control over unproductive expenditure, we have greatly increased capital investment by the public sector. To further augment such investments, we are encouraging the PPP (publicprivate partnership model), he said. Also, National Investment and Infrastructure Fund has been set up to leverage public investments.
We are also coming up with Tax Free Infrastructure Bonds with a view to broaden the corporate bond market and to provide long term finance for infrastructure, he said. We are eager to work with Malaysia, Singapore and other ASEAN countries in this regard. Prime Minister said the initiatives of 18 months has led to sentiments for private investment and inflow of foreign investment turning positive with foreign investment rising by 40 per cent. India, he said, has been consistently ranked as the most attractive investment destination by several global agencies and institutions.
He said the government has allowed and enhanced FDI levels in key sectors including insurance, defence and railways and put most of the sectors on automatic approval route. Also FDI policies in sectors like construction, plantation and medical devices has been rationalised and composite caps for Foreign portfolio investors has been allowed. A new bankruptcy code has been drafted and formation of the Company Law Tribunal to expedite cases is on the way.
We have ended retrospective taxation, he said adding the implementation of General Anti Avoidance Rules (GAAR) has been deferred. Also, the Goods and Services Tax Bill has been introduced in Parliament. We are hopeful of rolling it out in 2016. This will create a unified system of taxation across the country, he said.
Calling India and ASEAN natural partners, Modi said ASEAN’s ten member countries form an economic powerhouse and have emerged as one of the largest economic zones in the world. Last fifteen years have seen your rapid and yet stable growth. Your Macro-economic stability has been the main reason for growth and stability in South East Asia. With good governance, futuristic infrastructure and focus on new age technologies, you have created excellence, he said.
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