PM Modi said that the passage of the GST bill will happen and that retrospective tax is a matter of the past
Promising easier business environment for global investors, Prime Minister Narendra Modi on Sunday said retrospective taxation has been relegated to history, but he is "not able to do anything" on two pending cases from the previous government as "they are sub-judice".
Inviting Saudi businesses to come and invest in India in sectors like railways, defence and energy, Modi also said 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 Saudi CEOs and Indian business leaders here, Modi said his government has opened up various sectors to foreign investment and India stands out as a "beacon of hope" amidst global economic slowdown.
"World Bank has upgraded India by 12 ranks in Ease of Doing Business. I expect in the next review, our ranking will improve further because we have made a lot of administrative reforms.
"You are worried about GST. Do not worry about GST. GST will happen. I cannot give a timeframe, but it will happen. It was our commitment, and it is about to happen," Modi said.
Prime Minister added the government is in favour of long-term stable and predictable policies and any retrospective amendment to tax laws is a thing of past.
"There are two cases of the previous government, but they are sub-judice matter, so I am not able to do anything... Now, retrospective tax in India has become a thing of past. It will not happen going ahead," Modi said.
Although Prime Minister did not specifically name the pending cases, the major retrospective tax disputes include those involving Vodafone and Cairn.
Modi said with huge growth potential and evolving global relations, India should have a predictable taxation system.
"Retrospective tax is also a thing of the past. We have said this again and again in Parliament. Today again I am saying. If someone plans to come to India after 10 years, he should be able to predict the tax structure. So I'm in favour of a long-term predictable tax system and we have implemented it. So I don't think that in coming days there will be any problem," he said.
Prime Minister also said Saudi investors can look at petroleum, renewable energy, infrastructure and defence manufacturing as possible areas for investment.
"Saudi investment in fertilisers, warehousing, cold chain facilities and agriculture would be a win-win partnership as it would ensure good quality food products for Saudi Arabia," he said, adding defence sector accounts for second largest contributor to the import bill, after oil.
"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.
Prime minister added that today's world is scared of two things. First is terrorism and the other is more dangerous, cyber terror, which is unknown, but can still happen.
"There is a need for innovation in the field of cyber security and India has the talent. There is a need for dynamic professional management and for that there is lot of investment that is required," Modi said.
Inviting investments in petroleum sector, Modi said investors can partner India in energy sector as the country offers "transparent" policies.
He said in one year, India has already achieved 5,500 MW of renewable energy production.
"When I first time said 175 GW renewable energy people were surprised.... And I am confident that we will do it within the time period. I want investment in solar equipment manufacturing and we are ready to produce 175 GW renewable energy, which will be a strange thing for the world," Modi said.
"It has been less than two years since I came to power but we have taken several policy initiatives to spur growth and progress," said PM Modi according to ANI alerts.
He added, "FDI has increased in India in last 2 years."
PM Modi further said, "We are stressing on infrastructure,technological upgradation and improving quality of life."
Making a pitch for investing in India he said that the country has three things which are our calling card- demographic dividend, demand and democracy.
He further added that India has three benefits ie, skilled youth, demand and democracy.
Referring to India's relation with Saudi Arabia he said, "Our relations with Saudi Arabia are very deep."
The Prime Minister is presently in Saudi Arabia on a two-day official trip.
A little prior to this conference he visited the Tata Consultancy Services (TCS) all women IT & ITES Centre in Riyadh.
The Prime Minster also met Saudi King Salman bin Abdulaziz Al Saud's son, Prince Mohammad bin Salman, who many feel could be the future monarch. Prime Minister Modi on Saturday visited Larsen &Toubro workers residential complex at Dahiat Namar and also historical Masmak Fortress.
He is the fourth Indian Prime Minister to visit Saudi Arabia after Manmohan Singh in 2010, Indira Gandhi in 1982 and Jawaharlal Nehru in 1956. During his meetings with the Saudi leadership, Prime Minister Modi is expected to focus on counter-terrorism initiatives and ways to ensure the greater involvement of Indian companies in upstream and downstream oil, gas and hydrocarbon sector projects.
(With inputs from PTI)
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