New Delhi: When it comes to ease of doing business, India never been investor friendly and the BJP-led governement is keen to reverse the trend and attract foreign inverstors.
Speaking at the “Invest in India summit 2015” in Gandhinagar, Arun Jaitley, Minister of Finance, Corporate Affairs and Information & Broadcasting said, “At a time when we all have gathered here to discuss how to ensure finance for the future growth, introspection of why investors stopped investing in India can be of great help. Delay in decision making and aggressive tax regime are some of the factors, which has restricted the flow.
"But now, with some policy initiatives like FDI in sectors such as insurance & defense, the Central Government is trying hard to regain the confidence of the foreign investors. We are committed to ensure ease of doing business. Further, core focus on rural segment, infrastructure and smart cities is also expected to give a fillip to the investment.”
Twelve memorandums of understanding (MoUs) were also signed during the summit between private companies and various departments of Government of Gujarat in the presence of Jaitley, and Anandiben Patel, Chief Minister of Gujarat.
Earlier, in his opening remarks, Saurabhbhai Patel, Finance Minister, Government of Gujarat, said “With proactive industrial & IT policy, Gujarat has provided a conducive environment which can facilitate realization of Honorable Prime Minister’s vision of “Make in India”. Further, the state has also identified some labor intensive sectors and special incentives are being offered in order to ensure capital inflow to these sectors.”
Arvind Subramanian, Chief Economic Advisor, Ministry of Finance, Government of India, said, “Unlike 1980s & 90s, voters now give decisive political mandate for decisive economic change. In such a scenario, reforms by Center combined with competitive federalism are now two potent streams for the positive change required for funding the future growth. At the same time, participation of private sector and competition between the states for fetching investment are also good sign for the growth process.”
Giving details of India’s funding requirement and potential options for the same, Hasmukh Adhia, Secretary, Department of Financial Services, Ministry of Finance, Government of India, said that if we want to maintain a GDP growth rate of 7% per annum, financing of various sectors needs to grow at an annual rate of 18%. "In other words, it requires investment flow of US $ 800 billion i.e. Rs. 50 lakh crore per annum. To ensure this much amount of capital, we need to focus more on domestic fundings. Corporate debt market can be a good option for this purpose. Similarly, we also need to increase saving to GDP ratio," Adhia stated.