Government determined to push tax, financial sector reforms: PM Narendra Modi

Prime Minister Narendra Modi on Monday expressed his government's determination to push tax and financial sector reforms to improve business enviorment.

"Prime Minister Modi underlined his determination to further improve the business environment in India, including through tax, administrative and financial regulations, in order to boost investment," said a joint statement issued after his meeting with Japanese Prime Minister Shinzo Abe.

Earlier in an interaction with corporate leaders here, Modi invited Japanese businesses to join India's developmental efforts with a promise of non-discriminatory and speedy clearances and announced setting up of a Special Management Team under PMO to facilitate business from Japan.

The Modi government in the first Budget presented in Parliament in July announced a slew of investor friendly measures and assured that retrospective tax amendments will not undertaken to create fresh tax liability.

The government has also relaxed norms for foreign direct investment in key sectors like defence and railways. It has also introduced a bill in Parliament to increase FDI cap in insurance sector to 49 per cent from the current 26%. India's economic growth jumped to nine-quarter high of 5.7% in April-June quarter. The economy had recorded a subdued growth of 4.7% in the April-June quarter of the last fiscal, 2013-14.

The previous high was recorded at 6% in the October- December quarter of 2011-12. Last week in Delhi, India's Finance Minister Arun Jaitley had said the government would soon roll out disinvestment plan, push Goods and Services Tax (GST) and try to get the insurance bill through in the ensuing Winter Session of Parliament.