FDI policies in India with minimal conditionalities: Modi

Prior to leaving for Japan Aug 30, Prime Minister Narendra Modi Friday spoke to the Japanese media and stated that FDI (foreign direct investment) influx will happen on its own, as the foreign capital investment policies are with minimal conditionalities.

"I feel that with the right signal of policy stability and genuineness of intent by the government, FDI influx will happen on its own, as India is an excellent investment destination," Modi replied to a question put to him regarding his efforts at attracting FDI in India.

"We are open to dialogue and will strive to remove all roadblocks to inviting FDI. There are not many sectors left where FDI has restrictions. Review of FDI policy is a continuous exercise. We have recently opened up the railway sector to 100 percent FDI and 49 percent in defence."

On the proposed goods and services tax (GST), the Prime Minister said that its introduction is likely to reduce costs for industry, trade and consumers.

"Further, it would lead to widening of tax base and a significant improvement in tax compliance. We are discussing with states and holding dialogues for assuaging their apprehensions about possible revenue loss, and I am confident that sooner rather than later the states will come on board," Modi added.