Finance Minister Arun Jaitley, on his tour to US to woo investors there, has said that reforms have become 'absolutely necessary' in the areas of land, labour and taxes to attract investors. Jaitley promising a globally compatible business climate in India further said that the government is committed to these reforms and also promised a permanent consultation mechanism to address the foreign investors' concerns.
Jaitley further elaborating said that Land, labour and taxation -- these are the three areas, where the reforms are absolutely necessary. This is what many investors have highlighted and as far as taxation is concerned, quite a positive movement is going on in India, corporate taxes being made very competitive. He added that “The GST and various other instruments of investments are now coming up. So there is a sense of satisfaction.” On labour reforms, Jaitley said the Centre has made some changes while some states have also taken the lead and the government is agreeable to those proposals. On land reforms, he said 'Land of course is required whenever an investor comes in. Even without the land bill, I think purchase of land from farmers at good rates is an option which is always open.
FM also said that we have to provide a globally compatible regime where there is ease of doing business and where taxation levels are fully competitive. Investors want predictability. They do not appreciate uncertainties. The Finance Minister also said there are some individual investor concerns, which were important and the concerned departments will have to look into them.
