NEW DELHI: Prime Minister Narendra Modi on Saturday he sold hard to his government reforms ranging from manufacturing to taxes to labor, saying they have changed the world’s perception of the country from ‘why India’ to ‘why not India’ and continued to cite record foreign investment during the pandemic as testimony to that.
Speaking at the Assocham industry association’s Foundation Week event, Modi also said that agricultural reforms introduced by his government six months ago have started to benefit farmers.
“There was a situation in the past where investors asked ‘why India’ (to invest in the country). With the reforms (of the last six years) and their effects, their proposal has changed to ‘why not India ‘”, said. .
He cited the removal of 1,500 old and outdated laws and the cultivation of new ones that are in tune with the changing order of investment as an example of his government’s perspective.
“Previous investors cited high tax rates to say why India, but today (corporate) tax rates are so competitive that they say ‘why not India,'” he said.
Investors previously cited a web of regulations and rules to ask why invest in India, but reducing the burden of compliance with new labor laws made them say ‘why not India,’ he said.
The bureaucracy previously made investors say why India, but a red carpet now makes them say ‘why not India’, he said.
“From a non-existent culture of innovation to a new ecosystem that promotes and nurtures startups, the world is confident to say ‘why not India’.
“Before there was so much government interference that investors were saying ‘why India’. Today the government’s faith in private sector and the stimulus from foreign investors has made the same people say ‘why not India’, “he said. He stated that the new India is pushing towards Aatma Nirbhar Bharat (Self-sufficient India).
The government’s main focus is manufacturing and production-linked incentives have been provided to boost capacities and national capacity, he said.
The Prime Minister called on the industry to make every effort to make India self-sufficient.
“The reforms have changed the global perception of ‘why India’ to ‘why not India’,” he said. “The world trusts the Indian economy. Record FDI and FPI during the pandemic testify to that.”
Modi asked the industry to adopt best corporate governance and profit sharing practices.
He also said that investment in research and development (R&D) should be increased and that the private sector should increase investments.
“There is a great need to increase investment in R&D. In the US, 70% of investments in R&D are made by the private sector, in India the same is done by the public sector. A large part of this is in IT, the pharmaceutical and transport sectors. Today the need is to increase the participation of the private sector in investment in R&D, “he said.
More R&D funds should be set aside in sectors such as agriculture, defense, space, energy and construction.
“Today, when we are in mission mode to go local-global, we have to react quickly to geopolitical developments. A mechanism must be developed to see how India can meet any sudden increase in demand in the global supply chain,” he said . better coordination between the Ministry of Foreign Affairs, Trade and businessand industry associations.
“I urge you to give suggestions on how to react quickly and respond to the global transformation, how better mechanisms can be developed,” he said. India Inc.
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