PM says India has taken very decisive steps to remove a number of long pending concerns of investors.
New Delhi: Highlighting India as a bright spot for investment, Prime Minister Narendra Modi on Tuesday the government was trying to push reforms and hopeful of rolling out Goods and Services Tax in 2016.
“At a time of global slowdown, India represents a bright spot for investments,” Modi said while welcoming German investment into the country.
The Indian economy grew 7 per cent in April-June, matching China and outpacing all major emerging market economies. IMF chief Christine Lagarde has more than once described India as the only bright spot in an otherwise slowing global economy.
Since May 2014, Modi has unleased a raft of reforms and initiatives including the Make in India, Digital India and 100 Smart Cities to accelerate growth towards 8-10 per cent in the medium term from 7.3 per cent in FY15.
“We have introduced the GST Bill in Parliament. We are hopeful to roll it out in 2016,” Modi said at a business forum in Bangalore.
The Constitutional (One Hundred and Twenty Second Amendment) Bill or GST Bill was passed in Lok Sabha last year but the government could not get it passed in Rajya Sabha due to Opposition disruption. BJP lacks majority in Upper House and needs the support of main opposition Congress to implement the country’s biggest tax reforms.
The passage of the GST Bill in monsoon session was necessary for roll out of the new tax regime from April 2016. The government now hopes to take it up in the winter session.
While the government has failed to move ahead with legislative reforms, the Modi government has fast-tracked administrative reforms.
“Across the board we have increased the validity period of industrial licences. We have expedited regulatory clearances including security and environmental clearance. We have taken very decisive steps to remove a number of long pending concerns of investors,” he said.