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Modi invites German companies to take advantage of "historic opportunity" in India

 
Modi invites German investment, assures all support
Prime Minister Narendra Modi today invited German companies to take advantage of the "historic opportunity" presented for them by his Government's Make in India campaign and said he was committed to creating and improving the business environment in India.
 
"I can assure you that once you decide to be in India, we are confident to make you comfortable," he said in his address at the Indo-German Business Summit in Hannover today, which was jointly inaugurated by him and German Chancellor Angela Merkel.
 
Earlier, the two leaders had jointly opened the India Pavilion at Hannover Messe, at which India is the partner country this year. They also walked around the pavilion and met the various participants there. Ms Merkel had hosted a working dinner for him last night, over which they had a "very good interaction".
 
In his address, Mr Modi dwelt at length on the direction and the steps being taken by his Government for the development of India.
 
He said the visitors to the fair could see for themselves the winds of change blowing in India.
 
"We are very keen to develop the sectors where you are strong. We need your involvement. The scope and potential, the breadth and length of infrastructure and related developments is very huge in India," he said.
 
He went on to give the examples of some of the programmes, such as the plan to build 50 millin houses by 2022 and to develop smart cities and mega industrial corridors.
 
"For this purpose, we have refined our FDI Policy in construction. We have also come up with a regulatory framework for this sector," he said.
 
He said the Government had targeted 175 giga watt of renewable energy in the next few years. In addition to generation, the issues of transmission and distribution of electricity are equally important, he said.
 
He said plans had been drawn up to modernize the Railway systems, including signals, and railway stations. He said metro rail networks were planned in 50 cities and high speed trains in various corridors. Similar plans are being drawn up for highways, he said.
 
He said new ports were being built and old ones modernized through the ambitious Sagarmala scheme. He said similar focus was being given for upgrading existing airports and putting up regional airports to enhance connectivity to places of economic and tourist importance.
 
"In financial services too, we are moving towards a more inclusive and faster delivery of financial products including bank loans and insurance. For this purpose, we opened 140 million bank accounts; increased FDI in insurance upto 49% and have set up MUDRA Bank. 
 
"We also announced innovative schemes for insurance and pension to enhance social security for our citizens. 
 
"We also want to promote manufacturing in a big way particularly to create jobs for our youth," he said.
 
He said Germany ranked eighth among foreign investor countries in India. About 600 Indo-German Joint ventures are presently operating in India. 
 
"The purpose of my being here and participating in the Hannover Fair is to highlight that there is more potential in Indo-German economic collaboration. 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. 
 
"Many more German companies have the possibility of investing in India to take advantage of India’s potentials. The potential lies in manufacturing as well as infrastructure and in skill development for that purpose. I know that the reason for this situation may not be from German side. It is from the Indian side also," he said.
 
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Mr Modi assured German companies that India was now a changed country. "Our regulatory regime is much more transparent, responsive and stable. We are taking a long-term and futuristic view on the issues. Lot of efforts have been made and are still underway to improve the ‘Ease of Doing Business’ in the country," he said.
 
"Reducing the complicated procedures, making them available at one platform, preferably online, simplifying the forms and formats has been taken up on war footing. Definite mechanisms for hand holding have been set up in the form of hub and spoke. Invest India is the nodal agency for this purpose," he said.
 
"We do believe that FDI is important and it will not come in the country without a globally competitive business environment. Therefore, in this year's budget we have rationalized a number of issues which were bothering you," he sid.
 
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Mr Modi said that the Government had, in particular, 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. 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. 
 
"In this budget, we allowed Tax pass through for AIFs, rationalization of capital gains of REITs, modification in PE norms and deferring the implementation of GAAR for two years. We are constantly working to improve the business environment further," he said.
 
He said the Government was trying to introduce an element of transparency and predictability in taxation system. He said it had fast tracked approvals in industry and infrastructure. This includes environmental clearances, extending the industrial licences, delicencing of defence items, and simplification of cross-border trade. 
 
"Within a very short time, we introduced GST Bill in Parliament. 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.
 
Mr Modi said India's growth rate was about 7%-plus. "Most of the international financial institutions including the World Bank, IMF, UNCTAD, OECD and others are predicting even faster growth and even better in the coming years. Moody’s have recently upgraded the rating of India as 'positive' on account of our concrete steps in various economic segments," he said.
 
He also spoke of his Government's efforts to encourage innovation, research & development and entrepreneurship in the country.
 
On infrastructure development, he outlined the steps taken, including an all-time high allocaiton for roads and railways.
 
In addition, we are setting up India Infrastructure Investment Fund. We have also allowed Tax free Bonds in the Infrastructure sector including roads and railways," he added.
 
NNN
 
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