The Narendra Modi-led government on Monday committed to encouraging foreign direct investment (FDI), especially in sectors that create jobs and assets.
“…government will follow a policy of encouraging investments, including through FDI; which will be allowed in sectors that help create jobs and assets,” President Pranab Mukherjee in his address to Parliament.
He said the government will create a policy environment which is predictable, transparent and fair.
“It will embark on rationalisation and simplification of the tax regime to make it non-adversarial and conducive to investment, enterprise and growth… Reforms will be undertaken to enhance the ease of doing business,” he added.
The President said that for rapid creation of jobs in the manufacturing sector, the government will strategically promote labour-intensive manufacturing.
“Employment opportunities will also be expanded by promoting tourism and agro-based industries. My government will transform Employment Exchanges into Career Centres – connecting our youth with job opportunities in a transparent and effective manner through the use of technology as well as through counselling and training,” he said.
The government would also strengthen the pension and health insurance safety nets for labour force of all categories and would provide them access to modern financial services.
To increase India’s share in the global trade, Mukherjee said, procedures will be simplified and trade infrastructure strengthened to reduce transaction time and costs.
The small scale industries and handicraft sectors will be encouraged by providing them enhanced technological, marketing and investment support.
“Export potential of this sector will be encouraged. My government will make every effort to improve the working conditions of our weavers in particular. It will also set up a task force to review and revive our MSME sector,” he said.
Further, Mukherjee emphasised on the need to transform India into a globally competitive manufacturing hub powered by skill, scale and speed.
“To this end, the government will set up world class investment and industrial regions, particularly along the Dedicated Freight Corridors and Industrial Corridors spanning the country,” he said.
The government would encourage the domestic industry to innovate and collaborate internationally.
“It will strive to move towards a single-window system of clearances both at the Centre and at the States through a hub-spoke model,” he added.