india

Updated: Nov 04, 2019 00:39 IST

Prime Minister Narendra Modi on Sunday sought to hard-sell India to investors, saying it was the best time to be in the country as foreign direct investment, ease of doing business and productivity were rising, while tax rates, red tape and corruption were in decline.

Modi also said the country is committed to stronger surface, maritime and air connectivity links with Asean nations, which is central to New Delhi’s Act East policy and the Indo-Pacific.

Describing India as one of the world’s most attractive economies, Modi told an event organised in Bangkok to mark the Aditya Birla Group’s golden jubilee in Thailand: “India received $286 billion FDI in the last five years. This is almost half of the total FDI in India in the last 20 years.”

He added, “I say this with full confidence – this is the best time to be in India!” He noted that the ease of doing business, ease of living, FDI, productivity and efficiency, and pace of infrastructure creation were rising, while the number of taxes, red tape, cronyism and corruption were falling.

Modi also referred to his government’s plans to make India a $5 trillion economy. “When my government took over in 2014, India’s GDP was about $2 trillion. In 65 years, $2 trillion. But in just five years, we increased it to nearly $3 trillion,” he said.

He described taxation as an area where his government had done significant work and said India has one of the “most people-friendly tax regimes”. He said: “We are committed to further improving it even more…We are now starting faceless tax assessment so that there is no scope for discretion or harassment.” In a separate address at the India-Association of Southeast Asian Nations (Asean) Summit, Modi said that an integrated, organised and economically developing Asean was in India’s interest.

Modi, currently in Bangkok to attend the East Asia and RCEP summits, welcomed the mutual coordination between India and the 10-nation grouping on the Indo-Pacific. “Integrated, organised and economically developing Asean is in India’s basic interest. We are committed to further strengthen our partnership through stronger surface, maritime and air connectivity and digital link,” he said.

A line of credit of $1 billion will be useful for physical and digital connectivity, and India intends to greatly increase the movement of people for study, research, trade and tourism, he added.

“India’s Act East policy is an important part of our Indo-Pacific vision. Asean is and always will be the heart of our Act East policy,” Modi told a gathering that included the top leadership of the grouping.

Welcoming Asean’s decision to review its free trade agreement with India, Modi said this will strengthen economic ties and make trade between the two sides balanced. India wants to strengthen the partnership with Asean in maritime security, blue economy, humanitarian aid, agriculture, science, ICT and engineering, he added.

India and Asean together account for one-fourth of the world population and their combined GDP is estimated at more than $3.8 trillion.

During a meeting between Modi and his Thai counterpart Prayut Chan-o-cha, the two sides agreed to explore opportunities for cooperation in defence industries. They welcomed the 20% growth in bilateral trade last year, and decided to task trade officials to discuss ways to further boost commerce and investment.

They also discussed ways to enhance connectivity and welcomed the finalisation of agreements for cooperation between Thailand’s Ranong port and Kolkata, Chennai and Visakhapatnam ports in India.

Modi also met Indonesian President Joko Widodo and said India is committed to work with Indonesia to strengthen ties in defence, connectivity, trade, investment and people-to-people exchanges. Both leaders reiterated their commitment to work together for peace, security and prosperity to achieve their shared vision of maritime cooperation in the Indo-Pacific.

Modi also highlighted the need for greater market access for Indian commodities including pharmaceuticals, and automotive and agricultural products.

At a meeting with state counsellor Aung San Suu Kyi, Modi emphasised the priority India attaches to Myanmar as a “partner at the crossroads” of India’s Look East and Neighbourhood First policies. He spoke of India’s commitment to improve physical connectivity to and through Myanmar to South-east Asia, including building roads, ports and other infrastructure.

“The two leaders agreed a stable and peaceful border was an important anchor for the continued expansion of our partnership. Prime Minister emphasised the value India attaches to Myanmar’s cooperation in ensuring that insurgent groups do not find space to operate across the India-Myanmar border,” an official statement said.

Referring to the issue of Rohingya refugees who have fled Myanmar and sought shelter in Bangladesh, Modi emphasised the “speedy, safe and sustainable return…of displaced people to their homes in Rakhine State was in the interests of the region, the displaced persons, and all three neighbouring states”. He expressed India’s readiness to carry out more socio-economic projects in Rakhine.