RIYADH, Apr 3:
Wooing investors with promise of an easier business environment and stable tax regime, Prime Minister Narendra Modi today said retrospective taxation has been made a thing of the past but he is “not able to do anything” on two cases inherited from the previous Government as they are “sub-judice”.
Inviting Saudi businesses to come and invest in India’s defence, energy, railway, health and agriculture sectors, Modi also said that a common indirect taxation regime in form of GST (Goods and Services Tax) was “about to happen”. He, however, refrained from giving any specific timeframe.
Addressing a select group of Saudi and Indian business leaders on the last day of his two-day visit to Saudi Arabia, Modi said his Government has opened up many sectors to foreign investment and India stands out as a “beacon of hope” amidst global economic slowdown.
Prime Minister further said his government was trying to strengthen the banking network in India by freeing them from non-performing assets (NPAs) of state-run electricity companies whose liabilities had gone up significantly.
Modi said India has taken major policy initiatives to create favourable environment for investors besides removing administrative bottlenecks. In this regard he said the World Bank has placed India on 12th position in the list of countries that had ensured ease of doing business.
“Today, the world is facing a very deep economic crisis and in this situation, India is a beacon of hope. Whether it is World Bank, IMF or credit rating agencies, all of them consider India one of the fastest growing economies,” he said.
On roll out of the much-delayed GST, Prime Minister said, “GST will happen. I cannot give a timeframe, but it will happen. It was our commitment, and it is about to happen.”
To a question on retrospective tax, Modi said it will never be brought back again. He said two cases were ‘sub- judice’ and it would not be proper for him to comment further.
“As far as retrospective tax is concerned, it is a thing of the past. We have repeatedly said this in Parliament and I am repeating here again today.
He said Saudi investors can invest in building cold storage network in India as well as in manufacturing of equipment for generation of solar energy.
He said Saudi investment in fertilizers, warehousing, cold chain facilities and agriculture, would be a win-win partnership, as it would ensure good quality food products for Saudi Arabia.
He also said India and Saudi Arabia should look at working together in the field of cyber-security as it has emerged as a major area of concern.
Saudi Arabia is India’s fourth largest partner with bilateral trade exceeding USD 39 billion in 2014-15. It is also India’s largest crude oil supplier and accounts forabout one-fifth of total imports.
Describing India and Saudi Arabia as “old friends”, Prime Minister said both the countries should take bold new steps to a “golden future”.
Emphasizing the strength of ties between the two countries, he recalled King Salman bin Abdulaziz Al Saud mentioning that he was taught by an Indian teacher.
Modi said India had a unique combination of democracy, demography and demand, and several policy initiatives had been taken over the last two years to spur growth and progress.
Speaking about health sector, he said there was tremendous scope for investment in the manufacturing of medical devices.
He said India’s health sector which is globally extremely cost competitive, offers immense scope for health tourism. He added that Indian nurses, present in large numbers in the Gulf, are a testament to India’s well-trained manpower.
“We import everything for defence sector. Why can we not manufacture defence equipment in India? You investors can play a big role in that. Whatever will be manufactured, India is a very big buyer,” Modi said. (PTI)
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