High job potential sectors will be opened up for FDI: Modi

Hinting at opening up of more sectors, Prime Minister Narendra Modi, on Wednesday, said areas with high employment potential and strong local talent will be the focus to woo foreign investment and expressed confidence that reform measures like the GST and Land Acquisition Bills will be passed in “a matter of time”.

On the land Bill, which the government wants to push early but has now been referred to a Parliamentary committee, he said the government will accept any suggestions that benefit “ Gaon, Garib, Kisan (village, poor and farmer)”.

In an interview to PTI, Modi said measures already taken in the past one year have increased India’s attractiveness as an investment destination and investor confidence has improved.

“We have created the National Infrastructure Investment Fund. This is a major step which will increase the flow of foreign investments into all infrastructure sectors, without needing separate sector-by-sector approaches,” he said.

Asked whether obstacles to reform measures like Goods and Services Tax (GST) Bill and amendment to Land Acquisition Bill were hurting the economy, the Prime Minister said both the GST and the proposed Land Acquisition Bill are beneficial for the country.

“The core essence of these Bills should be appreciated by all the parties keeping aside political motives. Long-term interest of the nation should be foremost.

“The fact that the States have agreed to the GST design, shows the maturity of our federal system and the GST Bill has already been passed by the Lok Sabha. It is a matter of time before these laws are passed,” he said.

Modi said the government has initiated a number of major reforms which include decontrol of diesel prices, direct transfer of cooking gas subsidy, enhancement of FDI limits and revamping of railways.

“The truth is that reform has actually been pushed very fast and in fact as a result FDI has already witnessed an increase of 39 per cent in the period April, 2014 to February, 2015 compared to the previous year,” he said.

He also maintained that the success of steps that the government has taken and the positive response of the people to them in the first year “have encouraged us to do even more”.

He also dismissed reports of a difference between the Finance Ministry and the Reserve Bank saying the central bank has its functional autonomy which the government will “always respect and preserve”.

On the economic growth prospects for the current year, Modi said based on the experience of the last year and the enthusiasm of the people all economic indicators will exceed the targets.

“I do not want to undermine the potential and the efforts by giving any figure which may turn out to be too low,” he said.

To a question about the Opposition accusing the government for being pro-corporate, while some in industry like Deepak Parekh say nothing is happening on ground, he said, “If opponents are accusing us of being pro-corporate but the corporates are saying we are not helping them, then I take it that our decisions and initiatives are pro-people and in the long-term interests of the nation”.

On the issue of making progress on the BJP’s election promise on stringent action against back blackmoney, he said the very first decision of the Government after taking office was to constitute the Special Investigation Team to pursue black money.

“This step had been pending for years with no action and we executed it in our very first Cabinet meeting. Subsequently, we have also brought a new Bill which will combat black money held abroad and it prescribes stiff penalties.

“Thanks to our efforts, an agreement was reached at the G-20 summit in November 2014 to curb tax evasion and in particular to exchange information between countries. This will help us to trace black money. These are very strong and concrete actions,” he said.

To a question on the agrarian crisis in the country, the Prime Minister said suicide by farmers has been a serious concern for several years.

“Political point-scoring through comparing how many suicides occurred under which government will not solve the problem. For a government of any party, and for every one of us, even one suicide is worrisome,” he said.

“We need to find where we have gone wrong and why we are not able to solve this over so many years. I have asked all parties for their suggestions to bring contentment and security to our farmers. I want to assure our farmers that this Government will never be found wanting in doing whatever is needed for their welfare,” he said.

Modi said there was a good beginning on bridging the trust deficit between Centre and States. “The NITI Aayog is acting as a catalyst to build a vibrant Centre-State partnership to take the nation forward. This spirit of partnership and team work is gradually increasing and the fruits will be seen in the coming years,” he said.

To a criticism that power is concentrated in the Prime Minister’s Office (PMO), he said the government has delegated more powers to individual Ministries so that decisions can be taken by them.

“The financial delegation for Ministries has been trebled. Devolution to the States has been increased and States have become full partners in governance through the NITI Aayog,” he said.

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