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Last Updated : Dec 03, 2019 06:50 PM IST | Source: Moneycontrol.com

Govt open to further reforms to make India attractive investment destination: FM Sitharaman

She cited the recent corporate tax rate cut while talking about the various steps that the Indian government has taken in the recent times in this direction.

Finance Minister Nirmala Sitharaman, at the India-Sweden Business Summit on December 3, said that the government is open to further reforms aimed at making India a more attractive destination for investors. She cited the recent corporate tax rate cut while talking about the various steps that the Indian government has taken in the recent times in this direction.

"I only can invite and assure that the Government of India is committed for further reforms in various sectors whether it is banking, mining or insurance and so on," she said. She invited Swedish firms to invest in infrastructure development projects in India.

FM Sitharaman, without sharing details of future reforms, added that the government is addressing challenges faced by the industry.

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"Since after budget I have made sure constant interactions with the industry, understanding their challenges, and therefore, since after the budget not waiting for another budget which is expected in February 2020, we took major structure reform in the form reduction in corporate tax.

"This one measure indicates how our government believes in reforms. Today I say there are many more steps we have to take," she said.

In September this year, the government slashed corporate tax rates by up to 10 percentage points. The move was the biggest such tax reduction in the past 28 years. The Rs 1.45 lakh crore-tax break was aimed at pulling the economy out of a six-year low growth.

Base corporate tax for existing companies has been reduced to 22 percent from the earlier 30 percent. For new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023, tax rate was slashed by 10 percent, bringing it down to 15 percent.

The government has formed a task force which will come out with a list 10 major infrastructure projects by December 15, the finance minister said.

The finance ministry in September set up a task force headed by Economic Affairs Secretary to prepare a road map for the "national infrastructure pipeline" from 2019-20 to 2024-25 under a Rs 100 lakh crore infra plan. The task force is expected to cover greenfield and brownfield projects costing above Rs 100 crore each.

She emphasised that India has great prospects not that it just has large market but also a large aspirational middle class that has great purchasing power in hands.

"From the point of view being a democracy, a rule-based country, there is a clear rule of law principle which governs this country in a very transparent way and therefore if global investors are looking for an environment which is familiar to them is far more acceptable to them, India stands out," she said.

(With inputs from PTI)

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First Published on Dec 3, 2019 06:32 pm
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