India Continues To Be Bright Spot Of World Despite Challenges: Goyal

Amid global economic headwinds, India remains a beacon of opportunity for foreign investors, asserts Commerce and Industry Minister Piyush Goyal.
Piyush Goyal
Piyush Goyal

The global economic uncertainties have impacted foreign direct investment (FDI) but despite these challenges, India will continue to be the bright spot of the world for overseas players, says Commerce and Industry Minister Piyush Goyal.

While signing free trade agreements (FTAs) or bilateral investment treaties (BITs), the government always ensures the terms are best for India, Goyal told PTI in a post-budget interaction.

Finance Minister Nirmala Sitharaman in her budget speech on Thursday said India is negotiating BITs with different countries in the spirit of 'first develop India'.

She said that geopolitically, global affairs are becoming more complex and challenging with wars and conflicts.

"The global uncertainty has certainly impacted FDI, particulary considering that the interest rates in the US and other developed countries have massively seen a spike," Goyal told PTI.

He said that because of the high interest rates, there was a reverse flow of capital towards developed economies, "but I do believe" the fact that India is an oasis of stability.

India's aspirational population and other enablers are giving "us the confidence that despite all these adversities, India will continue to grow, India will continue to be the bright spot of the world," the minister said.

When asked about the impact of the proposal to extend tax incentives for startups, Goyal said the effort is to encourage startup ecosystem of the country.

On the finance minister's decision not to tinker with the tax or import duties, Goyal said:"It is proper that she has kept away from the temptation to give sops or provide any tinkering with the rates".

Sitharaman said that as for tax proposals "I do not" propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties.

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