The Finance Ministry on Tuesday promised to consider some of the taxation issues raised by foreign portfolio investors as also the suggestions made by them to make Indian securities markets (equity and government debt) more attractive for such investors.

Emerging out of a three-hour long meeting with FPIs in the capital, Economic Affairs Secretary Shaktikanta Das told reporters that the suggestions made by the FPIs would be examined by the Finance Ministry.

“Suggestions both in terms of process simplification as well as some new suggestions have come... some taxation issues were raised. The Department of Revenue also participated in the meeting. So, we will examine and look at the suggestions they have made,” Das said.

Ease of doing biz

Das said the main objective of the meeting was to further the ease of doing business in the country.

“The government would like to consolidate the current position of India and attract more investment into our market... We will interact with the concerned agencies, such as the RBI and SEBI, who were present at the meeting. And whatever decisions are required, we will take those,” Das said.

Das also did not rule out some of the suggestions getting factored in for the upcoming budget early next year. The Centre is now looking to present the general budget in late January or early February, doing away with the tradition of presenting a separate Railway Budget.

Positive outlook

“Nobody (at Tuesday’s meeting) had reservations about the fundamentals and robustness of where the Indian economy is today positioned. They are looking at bigger opportunities for investing in the Indian market. So overall outlook, I would say, is very very positive,” Das said.

Several top notch FPIs, including Citigroup, JP Morgan, and Goldman Sachs participated in the interaction. In all, about 35 FPIs attended the closed-door meeting.

Das also said Tuesday’s meeting will be followed by an interaction with domestic investors.

Related Topics
comment COMMENT NOW