Prime Minister Narendra Modi
Prime Minister Narendra Modi said on August 11 that the decision to repeal the contentious retrospective tax will lead to greater trust between the government and Indian industry.
Speaking at the annual summit of industry body Confederation of Indian Industries (CII), PM Modi said that the reforms undertaken by the centre over the years show that the the government has carried out reforms not out of compulsion but because of conviction.
"Even in the current Parliament session, we have carried out many reforms, like the Factoring Regulation Amendment Bill and the Deposit Insurance and Credit Guarantee Bill. Our decision to repeal retrospective tax will strengthen the trust factor between the government and the industry," Modi said.
Both Houses of Parliament have cleared the Taxation Laws Amendment Bill, which seeks to end the nine-year old retrospective tax. The bill was tabled by Finance Minister Nirmala Sitharaman on August 5 and had taken just 15 days to draft, as reported by Moneycontrol earlier.
Addressing the members of CII, Modi said that the government has sought and will continue seeking industry inputs on what more is needed to promote investment.
“The major responsibility for the success of ‘Aatmanirbhar Bharat’ lies on you, the captains of Indian industry,” Modi said, and added that the industry should be lauded for their resilience and initiative shown during the pandemic.
“The Indian economy is showing a welcome pick-up in growth and industry is making a major contribution to make this happen. There is hardly an occasion where investors are not making statements on new opportunities available in the country,” the Prime Minister said.
“Today we see a rise of a new India which is ready to work with the world welcoming every type of investment unlike in the past when it was apprehensive of foreign investment,” he said.
“The industry had risen to the occasion during the pandemic times to work hand in hand with the government and help with masks, PPE, ventilators etc. when it was most needed. The government looks forward to taking the partnership further in areas such as education, health and skills,” Modi said.
Modi also touched upon the rise of the Indian start-ups, especially with so many achieving unicorn status. A unicorn is any start-up which has a valuation of $1 billion.
“Today India has 60 unicorns as opposed to, possibly, 3-4 unicorns 6-7 years ago. Out of these 60 unicorns, 21 emerged during the last few months. The unicorns, with their diversity of sectors indicate changes in India at every level. Investor response has been tremendous for those startups and this signals that India has extraordinary opportunities for growth,” he said.
Modi said there was a time when India’s tax policies used to be the cause of uncertainty among investors, while today it has a highly competitive corporate tax and a faceless tax system.
“Red-tapism of the past has been replaced by a significant rise in the ease of doing business index. Similarly, rationalization of the maze of labour laws into 4 labour codes has taken place; agriculture, which was treated as a mere means of livelihood, is being connected with the markets through reforms,” he said.