New Delhi: Commerce and Industry Minister, Kamal Nath, on Monday said that the tax regime should be further simplified to boost inflow of Foreign Direct Investment (FDI) into India as well as exports.
In his address at the Plenary Session of the India Economic Summit 2005 entitled India: The New Paradigm, Kamal Nath said that the most striking feature was that economic reforms in India had been transformed from being crisis-driven, to success-driven.
Furthermore, people had seen the process of reform not as something thrust on them from above, but as something to be welcomed, and long overdue. "I stress this point, because more than anything, it is this paradigm shift in public perception that is the greatest guarantee that the economic reform process is irreversible," he said.
The Minister pointed out that changing corporate strategies and production systems open new possibilities for developing countries to enter technology intensive and export-oriented activities they could not otherwise have undertaken.
This helps them become a part of the international production system, he added.
"I believe that India has the potential to transform the world economy in the next two decades in the same way that America did in the last century, or that China has been doing for the past two decades. We are determined that India exploits this potential to the fullest," he said.
He mentioned that India's capital markets had also played a significant role in creating growth impulses in the economy.
In 2004, for example, Indian firms raised three times more capital from overseas money markets compared to 2000. FDI in India, though not as much as in China, had produced results one and half times more productive, more effective.
"We have now raised the bar of our GDP growth and are poised to enter into an 8 per cent growth trajectory," he added.
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