Investors and CEOs assembled at the World Economic Forum requested the Indian government to expidite clearances for projects in India and establish a uniform tax rate.
Several of them interacted with Commerce and Industry Minister Anand Sharma, who assured them that within the defined Foreign Direct Investment policy, the government would not only ensure speedy clearances but also facilitate them.
However, “the issues which they had were improving the mechanism in states for cutting down the time for approvals and rationalisation and uniformity of the taxes throughout the country,” Sharma said.
Sharma, who had several meetings in small groups with CEOs, apprised them of India’s ambitious tax reforms through the Goods and Services Tax (GST), which will replace most of the taxes at the Central and the state level.
Sharma said India’s FDI policy regime assures investors of security of investment, intellectual property rights, data protection and exclusivity.
After establishing itself as a services hub for the world, India would work towards becoming a global sourcing centre for manufacturing.
The factory production contributes about 20 per cent to the country’s GDP against over 55 per cent from the services.
With an intention to increase the share of manufacturing in economic production, the government will soon come out with a national policy.
“We have started work on the manufacturing policy. We want to make India the production hub of the world,” he said.
Mr. Sharma said India and China are being clubbed as the two important emerging economies witnessing a shift of the economic balance of power.
“The shift is clearly acknowledged. And the new world economic order is headed in the right direction, reflecting the ground realities,” he added.