BackNDA keen on allowing FDI in more sectors
DIPP secretary Amitabh Kant says a predictable, consistent and transparent policy across sectors for a long period of time was also important
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New Delhi: The National Democratic Alliance (NDA) government is keen to open more areas for foreign direct investment (FDI), barring multi-brand retail.
“There is complete laissez-faire as far as FDI regime is concerned. And if you feel that there is more opening up required in any other areas, please do let us know, we’ll try and vigorously take this forward. And we are determined to do this," Amitabh Kant, secretary, department of industrial policy and promotion (DIPP), said on Tuesday.
The NDA government has allowed 100% FDI in railway infrastructure and medical devices, 49% FDI in defence and insurance sectors, and relaxed the FDI norms for the construction sector since it came to power at the centre in May.
Kant said at the annual general meeting of the International Chamber of Commerce India that while opening up the economy was one of the ways of ensuring sustained growth, a predictable, consistent and transparent policy across sectors for a long period of time was also important.
“This point was repeatedly made at the CEO (chief executive officer) forum yesterday (Monday) by the American CEOs, and especially with reference to several policy issues that we need consistency and predictability of policy over a long period of time, particularly those on tax," said Kant.
He was speaking about the India-US CEO Forum held on Monday during US President Barack Obama’s visit.
India has been criticized for bringing in retrospective tax amendments during the earlier United Progressive Alliance regime which brought Vodafone Group Plc’s 2007 acquisition of Hutchison Whampoa Ltd’s Indian telecom assets under its net. There is another tax dispute between the Indian government and Vodafone related to transfer pricing.
Kant added that although there haven’t been fresh cases as far taxation is concerned, there were some legacy cases that needed to be addressed.
“There are huge number of legacy cases, which as the finance minister has been saying, he’s trying to find a methodology by which they can be sorted out but that’s the key to India’s growth in the long run. I’m quite sure that the government will find a way out, some quick solutions." Kant said.
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