Interim Budget measures that Modi govt needs to take to widen doors for global companies

economictimes.indiatimes.com:

India is attracting increased attention of global businesses and they have an important role to play in bringing additional investments over and above domestic resources. India wishes to be an important part of global supply chains and is also seeking investments to shore up domestic capability in sectors like semi-conductors, IT and telecom equipment, defence manufacturing, medical equipment, etc. Well-established global corporations in these areas could help bridge the gap in a short period of time. They bring in knowledge and technology, which otherwise can take a long time to develop.

The interim budget would be presented in the midst of positive tailwinds for India like geo-political alignment, stable macro-economy (exchange rates and interest rates under control), 100% FDI allowed in most sectors and the Government’s aspiration of making India a developed country by 2047. Despite the tailwinds, the pace of growth in Gross FDI has moderated after touching a high of USD 85 Billion in FY 22. The sentiment however remains strong given that India’s growth is likely to sustain over the long run. The attractiveness of the Indian market together with an easy and competitive business environment can India an unbeatable proposition for global companies. The interim budget can be leveraged to give this message, especially given that investments decisions are made constantly and there are other countries competing with India to attract FDI.

Ease of doing business in India

Higher investments can be facilitated through improved ease-of-doing business in India. There are several areas where more can be done, such as enabling faster setting up of manufacturing operations, tax certainty, more effective contract enforcement and