The Government is trying to address specific lingering policy issues in various sectors despite the easing of foreign direct investment (FDI) norms, a top official said.
“We are also trying to address specific policy issues in various sectors. We have identified a number of them that remain despite liberalisation in FDI (policy). There could be issues in various sectors,” Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said while addressing the India-Japan Business Co-operation Committee.
“There are so many other issues on infrastructure, taxation… We are taking up all this. Some of them are being resolved.”
The government earlier this year approved changes in the FDI regime. The reforms included allowing 100 per cent inflow in the civil aviation and food processing sectors while easing norms in defence and pharmaceuticals.
It also permitted 100 per cent FDI under the automatic route in several wings of broadcasting carriage services, which include teleports, direct-to-home, cable networks, mobile TV and headend-in-the sky broadcasting service.
“We are aware that the business climate has not been the best possible earlier, but now there is tremendous stress and thrust on improving it,” Abhishek said.
“In the last two years, the government has tried to create a business-friendly climate. Ease of doing business is a critical part of Make in India.”
He gave an assurance that efforts to constantly improve the business climate and infrastructure will continue and the results will be visible.
“We don’t make promises and not implement them. Projects are being monitored at the highest level for timely implementation,” the DIPP Secretary disclosed.
Asserting that implementation of the goods and services tax (GST) will be a gamechanger for the country, Abhishek said the government is determined to implement reforms next year and all necessary steps are being taken in that direction.
He observed that the impact of GST on Make in India will be “absolutely staggering” due to the level playing field it will provide to our manufacturers.
“Cost of domestic manufacturers and those manufacturing in India will come down and movement of goods and services across states will be much easier,” the secretary said further.
“… Removal of the cascading effect of taxes, online payments and compliance are going to reduce the burden on businesses, particularly MSMEs.”