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Making an all-out bid to woo German investors, Prime Minister Narendra Modi on Monday promised to make "corrections wherever required" to make India a global manufacturing hub adding it cannot be stopped by "our own rules and regulations".
Modi advised top German businessmen and industrialists to not go by "old perceptions" but to come to India and feel the change in the regulatory environment.
Modi's pitch for attracting foreign investors to boost his 'Make In India' initiative came at the inauguration of the Indo-German Business Summit at the Hannover Fair where he and Chancellor Angela Merkel opened the India Pavillion.
"At the end, it is my advice to you to come and feel the change in India's regulatory environment. Please do not go by old perceptions," he said at the event.
"Make In India is a need...We are confident that our journey to make India a global manufacturing hub cannot be stopped, that too, by our own rules and regulations. We must and will make corrections wherever (they are) required," Modi said to the cheers of the gathered audience that included top chief executive officers of companies in both the countries.
"Once again I invite you to India. I assure you of my personal attention in your success while you are in India," he said.
Earlier, inaugurating the India Pavillion, Modi said India has a huge potential to become a global manufacturing hub and invited the whole world to partner with the fastest growing economy in this endeavour.
Assuring German companies that India "is now a changed country", Modi said: "Our regulatory regime is much more transparent, responsive and stable. We are taking a long-term and futuristic view on the issues."
He said under his government, several steps have been taken up to improve the 'ease of doing business' in India, including reducing complicated procedures, while taking up on a war footing simplification of forms and formats.
To attract Foreign Direct Investment (FDI), the Prime Minister said his government had rationalised a number of issues which were bothering foreign investors. "We do believe that FDI is important and it will not come in the country without a globally competitive business environment... We have removed lot of regressive taxation regimes."
"In our very first Budget, we had said we would not resort to retrospective taxation. And if such issues do arise, they will be reviewed at the highest level," Modi added.
Stating that even legacy issues were being addressed, the Prime Minister said: "We have taken bold steps of not dragging the litigation in a few cases where we felt that the steps of the previous government were not on right lines." Citing example of his government's decision to defer implementation of General Anti-Avoidance Rule (GAAR) for two years, he said: "We are constantly working to improve the business environment further. We are trying to introduce an element of transparency and predictability in taxation system."
Fast tracking approvals in industry and infrastructure, including environmental clearances and extending industrial licences, delicencing of defence items, and simplification of cross-border trade were also highlighted by Modi.
"Such measures have helped in building up an enhanced investor confidence. The sentiments for private investment and inflow of foreign investments are positive. FDI inflows have gone up by 36 per cent during April 2014 and January 2015 against the same period in previous year," he stated.
Modi reminded the audience that the Indo-German economic cooperation was below potential and there was more room for improvement. "Though we have a vibrant relationship, our economic partnership is not as much as both countries would like to have. The flow of investments from Germany is well below the potential and less than Indian investments in Germany."
He said Germany ranked eighth among foreign investor countries in India with about 600 Indo-German joint ventures are presently operating there. Highlighting manufacturing, infrastructure and skill development as areas of opportunity in India, Modi said: "Many more German companies have the possibility of investing in India to take advantage of India's potentials."
Speaking at the inauguration of the India Pavillion at the fair in which India is a partner country, Modi said, "The entire world is looking at India. Demography, democracy and demand are attracting the world to India... Not only Germany, the whole world is looking at India."
"Low-cost manufacturing, efficient governance and no-defect manufacturing makes India a global engine in the manufacturing centre," he said.
The Prime Minister invited the whole world to come to India and increase their partnership with the country and make use of the opportunities India has to offer to scale new heights of success. "All kinds of rating agencies of the world are saying India is the fastest growing economy."
Merkel said she was impressed with what India was showcasing at the fair. "India is a country with a lot of young people, people who want jobs, want to see their country developed and evolved."
"We think India has a future when you consider democracy, innovation capacity and prosperity. Your country (India) is a very good example that this is easily possible," the German leader said.
Merkel said Germany is trying to forge a very close partnership with India.
"I think Hannover fair would allow us to turn a new chapter in our relationship. Let me assure you that Germany stands ready to develop this partnership," she said.
After inaugurating the India pavilion, the Prime Minister took a tour of Indian stalls and the rest of the venue.
He also offered tea and snacks to the German Chancellor at the 'India Pavilion'.
