“Opening of the Indian economy and sectors like insurance, railways, defence and several others which were earlier unavailable for FDI has helped us,” Union Finance Minister Arun Jaitley said at the Sydney campus of the SP Jain School of Global Management as he began a four-day visit to Australia .
“We have also removed the unnecessary conditionalities which were slowing down foreign direct investment and this, probably in greenfield projects, has made India the most sought after destination as far as FDI is concerned,” Jaitley said.
Describing the moves to ease doing business in India as “important work which is still in progress”, Jaitley said the NDA government was trying to make taxation systems compatible with global standards.
“There is a greater realisation in India that in the competitive world today, not only to attract foreign investors but also persuading domestic investors, we will have to ease our business processes. That’s an important work which is still in progress as far as India is concerned,” he said.
“In term of ease of doing business, you are measured by the stability of policies, by predictability, by cutting short the time between the decision to make an investment and actual implementation. You need few approvals and easy approvals.l
“We are now working on a direct tax system. we want to put disputes behind us. We want people to clean up their taxation issues and to bring down India’s corporate tax gradually to a fair international level which would be at a flat 25 percent,” he added.
Jaitley said reforms in key areas and focus on fiscal prudence and price stability have stabilised the economy and prepared ground for growth rates of 8 percent plus in the next few years. (IANS)