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Confederation of Indian Industry (CII) president Sumit Mazumder headed a business delegation in a recent visit with Prime Minister Narendra Modi to China. He talks to Subhayan Chakraborty & Indivjal Dhasmana about his impressions, and other contemporary issues. Edited excerpts:
Parliament has passed the black money Bill. Some business chambers had opposed it on the ground that it would lead to harrassment. What are your views?
We are in favour of the legislation. But inspectors should not harass businesses. The government has assured us that there will be proper checks and safeguards.
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Some of the rules suggest that earnings through the scheme will not attract income tax and other taxes. This kind of no-questions-asked formula might not be desirable; it might open the legal framework to convert black money (into white). The Indian mind is so ingenuous, it will find a way. These are my fears but then, I am not an expert on the subject.
How would you rate the Narendra Modi government in its first year of office?
I don't rate governments. But this government has achieved far more than I had expected it to in a period of one year.
You had accompanied the PM on his trip to China. What is your impression from the visit?
Modi was appreciated in China, both by the government and the business community. There is a lot of interest in Indian businesses, without a doubt. China acknowledges that between the two countries, we control a major chunk of the world market. And, that both need to succeed.
What about the issue of trade imbalance?
It was taken up quite a bit. China recognises the fact that this needs to be bridged for both countries to progress. We need to export more and Chinese companies need to invest more in India. Among the $22 billion worth of contracts signed, a large portion were deals with Chinese firms investing here. Also, a lot of discussion was held on market access. China has a number of indirect barriers to trade and it has been agreed by both countries to look into it.
Overall, are you satisfied with the amount of investments assured? Pakistan reportedly got around $46 bn from China, although a lot of it had been promised under defence cooperation.
You cannot make an apple to orange comparison. The more important thing here is the interest that India generates in China. In the CEOs' (chief executives') forum, ... there was a lot of excitement about investment and trade opportunities. A lot of Chinese companies believe India to be the next big market and they are open to partnerships as well.
Did Chinese companies raise concerns about retrospective amendments to the Income Tax Act, on Minimum Alternate Tax and non-passage of the Constitution amendment Bill on a goods and services tax (GST)?
No. However, they were very keen to know about GST.
Were they worried about the ease of doing business?
The current government has done a lot in that area. But it's a continuous process. As India does not have a good track record in that aspect, there were some concerns in that area. But Chinese companies currently working in India have no problems.
How did they take the appointment of K V Kamath as the first BRICS Bank head?
There was a lot of enthusiasm about it. They feel honoured to have a man of Kamath's stature to lead it.
