Reforms Necessary in Land, Labour & Taxation: Jaitley : The Economic Times

San Francisco:

Press Trust of India



Promises a consultation mechanism to address foreign investors' woes

Promising a globally compatible business climate in India, Finance Minister Arun Jaitley on Wednesday said reforms have become “absolutely necessary“ in the areas of land, labour and taxes to attract investors. Stating that the government is committed to these reforms, Jaitley also promised a permanent consultation mechanism to address the foreign investors' concerns.

The finance minister further said the government has already begun implementing various tax reforms. “The aggression in the tax policy has been subdued and taxation structures are now becoming a lot more compatible and lot less adversarial,“ Jaitley said in an interview here.

“Land, labour and taxation -these are the three areas, where the reforms are absolutely necessary. This is what many investors have highlighted. As far as taxation is concerned, quite a positive movement is going on in India, corporate taxes being made very competitive. The goods and services tax (GST) and various other instruments of investments are now coming up. So there is a sense of satisfaction,“ he said.

Wrapping up his seven-day US vis t, during which he met a number of oreign investors and the US admin stration officials, Jaitley said in vestors here made a number of suggestions that he is taking back home. “We have to provide a globally compatible regime where here is ease of doing business and where taxation levels are ful y competitive. Investors want predictability. They do not appreciate uncertainties,“ he said.

Jaitley said India stands out with a higher growth potential in “a slowed down global economic environment“.

“There has been a considerable amount of fiscal discipline which has been introduced in India.Many sectors have been opened up and there is a huge potential for in vestment in infrastructure. I think he cutting edge for India is that when rest of the world is slowing down and there are not many great nvestment avenues, India stands out as a good opportunity . There ore, if we can continue the reform story and improve ease of doing business, I think this is a great opportunity for India,“ he said.