 "Law 'agnostic' to size or country of company: Pilot")
Debunking negative perceptions about investment climate in the country, Union Minister Sachin Pilot has said India remains a safe and bankable destination, but all investors would need to comply with law of the land, irrespective of their size and country of origin.
His comments come against the backdrop of many foreign companies, including British telecom major Vodafone and American retail giant Walmart, facing regulatory and tax issues in the country.
"If any company, whether big or small, is found to be violating Indian laws, it will meet the same consequences. We will take action if any company is found guilty. Law is agnostic to the size or country of the company," Corporate Affairs Minister Sachin Pilot told PTI.
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Whether it is American, Australian, German, Jamaican or British company, Pilot asserted that law of the land is same for every entity.
Emphasising the importance of sending the right message to overseas investors, the Minister said India is a "safe, long-term, bankable and positive place to put money in".
"Despite all the negativity that may have gone out in the last year or two, India still remains a safe and favoured destination in comparison to many other economies.
"The economic situation has been bad across the globe and for a economy of a size of about USD two trillion, India is still doing well and is considered a good place to invest," Pilot said.
Referring indirectly to the Vodafone taxation issue, Pilot said there are instances where the government decisions get challenged, for example the government may have a view about certain amount of tax being payable and the company not agreeing to that view.
"Then some problems take place, but no government would ever make it difficult for any company to come and invest. We need the investments to create jobs," he noted.
Advocating the need for clarity, simplicity and fair execution of rules, Pilot said there is no point in having 5,000 regulations without much compliance.
"To make life simple, we are doing things internally and would later talk to other agencies," he added.
The panel, under former Sebi chief M Damodaran, in its report on improving India's business environment has suggested a raft of measures including simpler drafting of rules to avoid leaving room for interpretations and greater autonomy to regulators.
The high-level committee was set up by the Corporate Affairs Ministry and the final report is under consideration of the government.
Meanwhile, Pilot said that everyone should have patience in tapping the potential of the Indian economy.
"It's no secret that starting business in India is quite challenging, but it is also rewarding and that is the reason why every company wants to do business in India.
"We must be patient and let's not react hastily. India's position as a economic powerhouse is very established, but we will have to live up to that reputation. We can't take it for granted," the Minister said.