Indian business environment 8216;complicated8217;,says Singapore PM

Singapore Prime Minister who is on a three-day visit to India said when investors take a decision they want stability and they want to have reliable partner. They look at the prospect and possibilities. That8217;s the way all businesses happen,8221; he said answering a question on how to improve business climate in India.

Some global industry associations and investors have expressed apprehensions over business environment in India following announcement of controversial General Anti-Avoidance Tax Rules GAAR. Besides,retrospective tax as in the case of Vodafone has also added to uncertainty among some investors. Asking India Inc to set up global base in Singapore,Lee said the countries have to 8220;do a lot more to enhance bilateral relations8221;. Already 4,000 Indian companies are currently operating in Singapore.

He said the rate of corporate tax in Singapore is far less than in the US and UK,which has helped Singapore a favourite investment destination.8221;We are in the process of setting of a board of investment to help investors in executing the projects,8221; Lee said.

Lee said that there was a need for increasing frequencies of flights between India and Singapore. Singapore has emerged as the most sought after destination for foreign direct investment by Indian companies,which invested over USD 500 million there,accounting for about a fourth of the country8217;s total outward investment of USD 2.35 billion only in May.

The two countries also have a bilateral free trade agreement which has helped the mutual commerce growing to near USD 20 billion.

Industry leaders said India could look at Singapore8217;s expertise for improving urban infrastructure and called for strengthening partnership between the two countries. Speaking on the occasion,CII president Adi Godrej said there existed great potential for further deepening of ties between the two nations.

He said Singapore8217;s expertise in areas like waste and water management,urban infrastructure and low cost housing were worth emulating.

8220;Singapore is a model for city development,an example of how a modern city can co-exist with vibrant green spaces and eco-friendly practices,without compromising on quality of life. There is much we can learn from it as India8217;s pace of urbanisation quickens,8221; Godrej said. Ficci President R V Kanoria said Indian entrepreneurs were increasingly using Singapore as a launch pad to expand their business globally.

8220;Opportunities are immense and the foundation for a strong and fruitful partnership between Singapore and India is already in place,but there is much potential to take ties further forward,8221; Kanoria added.

Assocham8217;s immediate past President Silip Modi said combined with a good enabling environment,strong air connectivity and the presence of a large Indian community,Singapore has emerged as a key offshore logistics and financial hub for many Indian corporates.