"India trusts its private sector, takes more risks" --- was the message from Prime Minister Narendra Modi who spoke at the annual meeting of industry body Confederation of Indian Industry (CII).

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In a speech that lasted nearly 20 minutes, the Prime Minister said the relationship between the government and the private sector has become deeper and stronger. Terming unicorns as the identity of a new India, PM Modi said India now has 60 companies that can call themselves unicorns and 21 of those got that tag in just past few months.

He also touted the recent decision by the government to do away with the retrospective taxation saying it will strengthen the confidence of investors even further.

The Prime Minister called on the industry to increase its risk appetite and invest more in research and development.

In an interview with Shereen Bhan, TV Narendran, President of CII and MD of Tata Steel, said policy stability and consistency are important to attract investments and the government has taken a big step towards that by indicating that they will not have retrospective tax kind of law in future.

"One of the things, which keeps coming back and which gets addressed through these actions on the retrospective tax is policy stability and policy consistency. Our members as well as overseas investors say we can deal with higher costs as long as there is policy stability. So, I think the government has taken a big step towards that by indicating that they will not have a retrospective tax kind of law in future and there will be more policy stability and consistency."

He expects the industry to announce more investments over the coming few quarters.

"There are some sectors, which are doing well and have announced investments, for instance the metals and mining space is an area where you are seeing investment announcements and which will play out over the next year or two."

Also Read: Government may reach out to companies to settle retrospective tax cases

"However there are some sectors of the industry which are still struggling particularly the services sector. But I think those in the industry who are doing well and who have had capacity utilisations, good profitability, good demand are certainly announcing investments. I do think that certainly over the next few quarters you will see more and more such announcements."

Watch video for more.

(Edited by : Bivekananda Biswas)

First Published:Aug 11, 2021 10:45 PM IST