Will make corrections where required: PM Modi to investors

Making an all-out bid to woo German investors, Prime Minister Narendra Modi today promised to make "corrections wherever required" to make India a global manufacturing hub saying it cannot be stopped by "our own rules and regulations".

He also told top German businessmen and industrialists not to go by "old perceptions" but to come to India and feel the change in the regulatory environment.

Modi's pitch for attracting foreign investors to boost his 'Make In India' initiative came at the inauguration of the Indo-German Business Summit at the Hannover Fair where he and Chancellor Angela Merkel opened the India Pavillion.

"At the end, it is my advice to you to come and feel the change in India's regulatory environment. Please do not go by old perceptions. Make In India is a need...We are confident that our journey to make India a global manufacturing hub cannot be stopped that too by our own rules and regulations. We must and will make corrections wherever (they are) required," Modi said to the cheers of the gathered audience that included top CEOs of companies in both the countries.

"Once again I invite you to India. I assure you of my personal attention in your success while you are in India," he said.

Narendra Modi Prime Minister of India

Make In India is a need...We are confident that our journey to make India a global manufacturing hub cannot be stopped that too by our own rules and regulations.

Earlier, inaugurating the India Pavillion, Modi said at the India has a huge potential to become a global manufacturing hub and invited the whole world to partner with the fastest growing economy in this endeavour.

 Assuring German companies that India "is now a changed country", Modi said: "Our regulatory regime is much more transparent, responsive and stable. We are taking a long-term and futuristic view on the issues."

He said under his government several steps have been taken up to improve the 'Ease of Doing Business' in India, including reducing complicated procedures, while taking up on a war footing simplification of forms and formats.

In order to attract FDI, the Prime Minister said his government has rationalised a number of issues which were bothering foreign investors.

"We do believe that FDI is important and it will not come in the country without a globally competitive business environment...We have removed lot of regressive taxation regimes.

"In our very first Budget, we said we will not resort to retrospective taxation. And if such issues do arise, they will have to be reviewed at the highest level," Modi added.

Stating that even legacy issues were being addressed, the Prime Minister said: "We have taken bold steps of not dragging the litigation in a few cases where we felt that the steps of the previous government were not on right lines."

Citing example of his government's decision to defer implementation of GAAR for two years, he said: "We are constantly working to improve the business environment further. We are trying to introduce an element of transparency and predictability in taxation system."

Fast tracking approvals in industry and infrastructure, including environmental clearances and extending industrial licences, delicencing of defence items, and simplification of cross-border trade were also highlighted by Modi.

"Such measures have helped in building up an enhanced investor confidence. The sentiments for private investment and inflow of foreign investments are positive. FDI inflows have gone up by 36% during April-2014 and January-2015 against the same period in previous year," he said.

Modi reminded the audience that the Indo-German economic cooperation was below potential and there was more room for improvement.

"Though we have a vibrant relationship, our economic partnership is not as much as both countries would like to have. The flow of investments from Germany is well below the potential and less than Indian investments in Germany," the Prime Minister said.

He said Germany ranked 8th among foreign investor countries in India with about 600 Indo-German joint ventures are presently operating there.

Highlighting manufacturing, infrastructure and skill development as areas of opportunity in India, Modi said: "Many more German companies have the possibility of investing in India to take advantage of India's potentials."