FM assures transparent,fair regime for foreign investors

The concerns raised by American companies on the taxation front have been voiced by several others as well,more so after last years amendment of several taxation provisions retrospectively. The amendments were done to bring companies,including Vodafone under the tax net who were taking benefit of lack of clarity in tax laws.

However,the amendments hit the confidence of global investors in India and a sharp fall in FII inflows followed. The government then formed a committee under economist Parthasarthi Shome for damage control.

Vodafone India CEO Marten Pieters said in Idea Exchange,organised by The Indian Express on Thursday,that the changes had led to trust deficit and reduced confidence in Indian policies.

The finance minister tried to allay their concerns and said the government was committed in ensuring a fair,transparent and non-discriminatory environment for foreign investors. Emphasising on the need for US companies to set-up local manufacturing bases in India,Chidambaram said,It is in the mutual interest of both countries for India to become a large manufacturing economy. with pti