Open to further tax rationalisation for 'Make in India': Rajnath Singh

Defence minister Rajnath Singh on Wednesday said India has taken a host of measures to attract investments in the defence manufacturing sector and is open to any further tax rationalisation that may be required to encourage the 'Make in India' initiative in the sector.

Addressing a delegation of CEOs representing some of France's leading defence industry majors at the end of his three-day visit to the country, the minister also highlighted the recent cut in corporate tax rate as well as the steps taken to improve the ease of doing business in India.

"For 'Make in India' in defence, if there is need for further tax rationalisation, it may be considered suitably," Singh said.

"We have undertaken significant economic reforms to improve the ease of doing business and open up the economy for investments. The government under Prime Minister Narendra Modi has opened up defence sector manufacturing to a large extent under the 'Make in India' initiative. We have implemented across the country a single Goods and Services Tax (GST), which is the biggest tax reform since our independence and we have recently reduced our corporate tax significantly," he said.

The minister, who arrived in France to receive the symbolic delivery of the first of the 36 Rafale combat jets acquired by the Indian government to enhance the Indian Air Force (IAF) defence capabilities, said his visit reflected the depth of the India-France partnership in the defence industrial sector.

He said: "India is open to explore opportunities of co-production of high-end defence equipment and seeks collaborations to modernise our shipyards and defence platforms by the infusion of technology.

"French firms can make India its base for production of defence equipment, not only for India's large market but also for export to other countries."