Union minister Rajnath Singh held out hope for further tax rationalisation measures to invite foreign investment in the country. The defence minister is currently in France, to meet the heads of the French defence establishment on Thursday and invited them to participate in the ‘Make In India’ initiative.
The minister was quoted as saying at the meeting by media, “Our government is ready to consider further tax rationalisation measures to encourage ‘Make in India’.” With the economic growth dropping to a five-year low, the government had recently eased the norms for Foreign Direct Investment to ensure the ease of doing business.
The areas where norms were relaxed include single-brand retail, manufacturing sector and coal. A 100 per cent foreign investment was also allowed in coal mining and contract manufacturing and sourcing norms were relaxed for single-brand retailers.
The move – made in August – is expected to contribute to the government’s goal of expanding to a 5 trillion dollar economy over the next five years. The changes in FDI policy will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment, and growth,” Commerce Minister Piyush Goyal had said.
Singh, who in France to take the formal handover of the 36 Rafale fighter jets bought by India, had a dialogue with the French Minister of Armed Forces and the heads of the French defence industry on Wednesday. He invited the defence industry leaders to participate in the “Make In India” initiative and extended an invitation to the DefExpo in Lucknow from February 5 to 8 next year.
