Prime Minister Narendra Modi at the official opening of the Hannover Messe industrial trade fair in Hanover, central Germany on April 12, 2015. (Agence France-Presse photo)
Wooing investors from Germany and the rest of the world, Prime Minister Narendra Modi on Sunday promised a welcoming business environment in India with a "predictable, stable and competitive" tax regime and asserted that the "remaining uncertainties" will be addressed.
He said the task of turning around the systems in India is "huge" and will not be completed overnight but stressed that the government is firmly moving in that direction and it will be done.
Inaugurating, along with German Chancellor Angela Merkel, the Hannover Fair in which India is a partner country, PM Modi said his government is "removing unnecessary regulations and simplifying our procedures" to make it easy for doing business in the country and enable foreign companies to participate in the 'Make in India' programme.
"Today, I come to seek German partnership in my own mission to open up India's seamless economic potential. To the industry of the world that has assembled here today, I say that we have no special bias for our host today! India is open and ready to embrace the world," he said addressing the gathering of top business leaders from Germany and other parts of the world.
Citing his travels around the world, PM Modi said he has seen "a new level of interest" in building partnerships of trade, investment and innovation in India.
"It mirrors the surge of hope in our own people and industry; the new tide of expectation in our 800 million youth -- for opportunities and progress. And, if we want to fulfil the dreams of our youth, we must turn our industry into a manufacturing hub for the world and an engine for employment at home. And, we must equip our youth with the skills to meet the needs of our nation and the demands of the globalised world," he said.
Inviting investments and technology, the Prime Minister said, "We are using digital technology to eliminate multiple approvals and endless wait. We will guide you and walk with you in your projects. We have set up 'Invest India' and country desks in it that will be networked to the states. We will nurture innovation and protect your intellectual property."
"There were institutions in India that seemed beyond scrutiny. Well, they no longer are. We are reforming institutions in ways that has not happened in decades. We are building a tax regime that is predictable, stable and competitive. We will now address the remaining uncertainties. The Goods and Services Tax is a long needed revolution that is becoming a reality," PM Modi said.
"My message to you (foreign investors) is this: You will find environment that is not only open, but also welcoming. We will make it easy to do business in India. And, we will always be eager to listen to your feedback," the Prime Minister said.
Chancellor Merkel, who led her country out of economic recession, responded by saying that she wanted not only Germany companies to participate in 'Make-in-India' but also 'Make-in-Germany' in which Indian companies could participate.
With regard to PM Modi's assertion about improving conditions for business in India, she said the two countries will have inter-governmental talks later this year when "stock" can be taken of whether the "problems" have been addressed.
"India and Germany need to change ways of doing business," the Chancellor said.
She said the good volume of trade of 16 billion euros is a "good point" to start.
Observing that France, from where PM Modi came, was also keen to do business with India, Chancellor Merkel told the German business leaders, "I know you have competition but more the competition, better you get."
PM Modi earlier said, "For us, the highest priority is creating world class infrastructure. We have made a sharp increase in public investments. We have established a National Infrastructure and Investment Fund and a new institution for integrated development of this sector."
"We are launching attractive new financial instruments for long term funds. We seek to fuel our growth with the cleanest and most efficient use of energy," PM Modi said.
He said his government has set a target of 75 Giga Watts of new capacity for renewable and clean energy in the next seven years.
"It is a challenging goal -- yes; but, important to pursue," the Prime Minister said.
Talking about good governance, he said, it is essential "not just for our citizens, but also for business."
Giving an overview of what his government is doing, PM Modi said, "With transparency and speed, we have resumed long stalled projects and allocation of resources. This is adding new momentum to our economy. We are instituting a rational framework for acquisition of land without causing distress to farmers and other landowners. We are creating a predictable and transparent environment approval process that will protect our natural heritage."
He also highlighted his efforts for cooperative federalism to achieve developmental goals.
"The investment journey may begin in Delhi, but its success depends on state capitals and districts," he said.