Prime Minister Modi vows to 'carefully hold' investors' hands

India, Singapore ink 10 pacts; PM says 'hopeful of GST in 2016'

Promising more reforms to make India more attractive for foreign investments, Prime Minister Narendra Modi on Tuesday assured investors that he would “carefully hold” their hands and expressed hope that the goods and services tax (GST) regime would be rolled out in 2016.

“We are hopeful to roll out GST regime in 2016. The company law tribunal is being set up. FDI inflows have gone up by 40 per cent compared with previous year’s comparative period. Perceptions are turning into positive outcomes. FDI commitments are translating into reality,” he noted.

He also said rupee bonds would be launched in countries like Singapore to fund infrastructure projects.

India and Singapore on Tuesday elevated their ties to the “strategic partnership” level and signed bilateral agreements. Modi met his Singaporean counterpart Lee Hsien Loong and signed agreements for enhanced defence cooperation and in the areas of cyber security, shipping and civil aviation, among others. Modi also met Singapore President Tony Tan Keng on the second day of his visit on Tuesday and was accorded a ceremonial welcome here at Istana, the official residence and office of the President. The 10-pacts signed by the two sides included a joint declaration by the two prime ministers on a strategic partnership. The other pacts included an agreement between the two countries on enhanced defence cooperation, which provides for defence ministers’ dialogues, joint exercises between armed forces, cooperation between defence industries to identify areas of co-production and co-development.

With tight control over expenditure, capital investment by the public sector has been greatly increased, Modi said.

A National Investment and Infrastructure Fund is being set up to leverage this, while tax-free infrastructure bonds will be issued soon. “This will also provide long-term finance for infrastructure. For infrastructure, we have also decided to launch rupee bonds in some countries. Singapore could be among them. We are quite eager to work with Singapore in this regard.”

Speaking at the India-Singapore Economic Convention, Modi said: “We are keen to scale up investments in next-generation infrastructure, including digital networks and clean energy. In addition to the core infrastructure, we are keen to invest in our social, industrial and agri-infrastructure to give better income and quality of life to our people.”

The prime minister invited investors from Singapore to participate in the proposed divestment of Navratna public sector undertakings and sought the Singaporean government’s help in building at least 20 smart cities.

Addressing the Indian diaspora here before winding up his two-day visit to Singapore, Modi said his government has been working to raise the self-confidence of Indians, while focussing on development which will “wipe the tears of people, provide jobs, bring about prosperity for farmers, empower women and move ahead in the world with the mantra of unity and integrity.”

Won’t create problems for world on climate change, says PM

Prime Minister Narendra Modi on Tuesday said at a meeting in Singapore India would not create problems for the world in combating climate change.

His comments come days after US Secretary of State John Kerry had said India could be a “challenge” at the upcoming climate change talks in Paris beginning November 30 as it “has been more cautious, a little more restrained in its embrace of this new paradigm.”

“We need power but we will not create problems for the world,” the prime minister said.