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India's GST move makes it attractive to foreign firms: Chinese daily

Implementation in country's 29 states would not be easy due to regulatory challenges

Press Trust of India  |  Beijing 

Manufacturers, euro zone

is becoming more attractive to but its path of reforms, including the implementation of the GST, will not be easy, an article in a state-run Chinese daily said on Tuesday.

"As low-cost manufacturing is gradually moving away from China, it is now critical for and even the world whether it can replace as the next 'world's factory', an article in the Global Times said.

The Indian has rolled out "aggressive reforms" aimed at unifying the country's market, which is very attractive in the eyes of international investors, even though there are huge challenges such as poor and difficulties in policy implementation across different states, the article opined.

Referring to the commitment by Foxconn and Midea to invest in India, it said these are coming close on the heels of India's decision to implement the Goods and Services (GST), the country's biggest reform since its independence in 1947.

"The new regime is expected to give a boost to the 'Make in India' initiative because it is aimed at unifying various state and central taxes into a single system, thus laying the foundation for a common national market and improving India's manufacturing competitiveness," the article said.

"In fact, since Prime Minister launched the 'Make in India' initiative in September, 2014, the Indian has been making aggressive efforts in unifying the country as a whole, with the aim of building it into an attractive manufacturing destination for global businesses," it said.

The article, however, cautioned that it will not be easy for to achieve its goal.

It stated that regulatory and bureaucratic challenges across the country's 29 states meant that the implementation of the reform measures will be far from simple, while poor and cultural complexity may also undermine India's advantage in terms of

"Obviously, is at a critical juncture for market opening-up and unification, which requires strong faith and assertiveness. Whether it can eventually pull off the current tasks will depend on whether the Modi is steadfast in pushing forward with its reform programme," it said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 11 2017. 16:21 IST