Streamlining taxation crucial to attracting investment: MoS Commerce

In the wake of the recent 'Ease of Doing Business' report, which was released by the World Bank, Union Minister of State for Commerce and Industry, C.R. Chaudhary said steps like streamlining taxation and implementation of incentive system among states will help attract domestic and global investors.

"We need to think about providing incentives to the industry and we have been simplifying the procedures. It is due to the efforts of all the stakeholders that India leaped 30 spots to rank 100th in World Bank's latest global rankings. Our target is to come at 50th place and that will happen when we facilitate industrialists and investors," said Chaudhary while inaugurating an ASSOCHAM Ease of Doing Business Summit here.

"Our Prime Minister wants reforms to be undertaken as without any reformation we cannot seek investments as such we need to facilitate the investors. Without encouraging the manufacturing sector and without foreign direct investment (FDI), we cannot develop and come in the category of developed countries," he added.

Chaudhary further urged the industry to take steps to improve quality of products, thereby adhering to 'zero defect and zero effect' policy, in order to sustain in the international markets. Drawing upon the European Union ban on India's basmati rice exports citing 'technical points', Chaudhary re-iterated utmost emphasis on quality.

"We had sought time in our last meeting with representatives of France, President of Czech Republic as we need to spread awareness among farmers about not to sprinkle such pesticides although December 31 is the last date," he said.

While India used to get 80-90 per cent investments in government and public sector industries, Chaudhary stated that 90 per cent investments are presently coming through automatic route.

"It is a very positive thing for our private players and entrepreneurs who are now directly collaborating with foreign companies and getting investments in the country which has been facilitated through ease of doing business," said the Union Minister.

Lauding the government's efforts in attracting record USD 60 billion worth of FDI in a single year, Chaudhary invited the domestic and global investors to reap dividends by investing in infrastructure and logistics sector that provide huge scope.

He also said the government's main focus is on enhancing production of quality material, attracting domestic and foreign investments in large numbers, enhancing exports and creating more number of employment opportunities for young generation.