Modi woos German investors with stable, transparent tax regime

PM reiterates his govt's commitment to reducing corporate taxes and implementing a single Goods and Services Tax in 2016

Pledging a stable and transparent tax regime, Prime Minister Narendra Modi today wooed global investors, saying development is "not a mere political agenda" but an "article of faith" and sought international support to achieve the objectives crucial for growth.

"We have re-energised the Indian growth engine. The credibility of our economy has been restored. India is once again poised for rapid growth and development," Modi said.

"It is the only emerging economy where growth rate is rising. The prospects are even better," he wrote in an op-ed article in the German daily Frankfurter Allgemeine Zeitung.

Modi said his government has earnestly taken up the challenge of development and economic transformation of India.

"For us, development is not a mere political agenda; it is an article of faith," he said.

"My Government has pledged a stable and transparent tax regime, reducing corporate taxes and implementing a single Goods and Services Tax (GST) in 2016," he said.

Modi, who along with German Chancellor Angela Merkel yesterday inaugurated the Hannover Fair in which India is a partner country, said generating jobs for India's youth is a key to harnessing India's demographic advantage.

"This can be achieved only when we significantly and quickly ramp up our manufacturing capabilities. To meet this objective my government has unveiled the 'Make in India' initiative. This is a win-win for all," he said.

"With 65 per cent of our population below the age of 35, the possibilities that India's growth presents for global economic prosperity are immense," he said.

Modi, who is on a three-day visit to Germany, said the focus of his government is "not merely economic growth but an inclusive development."

"I visualise India as a key engine of global growth. Our democratic principles and practices are guarantors of stability. We have a free media and an independent judiciary that allows all opinions to be aired without fear. We believe in 'Rahein Saath Badhe Saath' (stay together-grow together)."

He said that global collaboration and support were crucial to meet the objectives of development.

"International support and collaboration is equally critical to achieving our objectives. I have therefore sought to build a foreign policy which is an integral part of our national development strategy.

"My interactions with leaders of USA, Russia, France, Japan and China have all aimed at creating enduring partnerships with shared stakes in global development and well-being," he said.