Addressing Japnese business leaders in Tokyo, Prime Minister Manmohan Singh said that he is hoping for a full implementation of the goods and tax services (GST) after the 2014 general elections.
"India is a federation, and in a federation, there are difficulties in bringing or convincing states to agree to surrender tax power. But, I am confident that we will overcome these hurdles," he said on Tuesday.
"We will work and we have been working to persuade more and more state governments to fall in line, but it does require an amendment of the Constitution of India. Amending the Constitution needs more energitic efforts than an ordinary peace of legislation," he added.
"So, I cannot say that we can deliver GST tomorrow, but, if you ask me by 2014 will you have a GST of the appropriate type once elections are out of way, there will be general agreement," Dr. Singh said.
Highlighting the recent initiatives of the government to enhance investements and liberalise foreign investments in retail and civil aviation, the Prime Minister told business leaders here that he expects growth to be better than the previous year. He said he is expecting a growth of six percent this year.
He invited Japnese companies to invest heavily in the infrastructure sector, and urged them to increase their footprint in India.
He also asked Japan to make its markets more accessible to Indian pharmaceutical and information technology firms.
Japanese investments account for merely four percent of investments in India.
