NEW DELHI:
Prime Minister Narendra Modi will showcase the new goods and services tax (GST) during his summer tour of high-power diplomacy that will take him across Germany, Russia and the US over the next two months, leading up to the G-20 high table in July.
South Block officials told ET that GST will be at the core of the Prime Minister’s big pitch underlining India’s commitment to long-term structural reforms for making it easier to do business in India.
"It does show that we have a strong government in Delhi which can take bold decisions to create a predictable environment for foreign investors," said a senior official.
He will also make the point that these reform measures are taking place in an environment of political stability, which is a big plus in mapping India’s greater credibility compared with other major economies like China. GST has been a major talking point among western economies, built up as a significant indicator of New Delhi’s political dedication to reforms.
Prime Minister Modi will begin his tours with a trip to Germany, Spain and Russia from May 29 to June 3.
He is scheduled to visit the US in the last week of June, when he will hold his first meeting with President Donald Trump. He will return to Germany in July for the G-20 summit.
With the US still looking unsettled, India is keen to deepen the economic relationship with Germany, the economic driver of Europe. His stop in Spain is focussed on building technology partnerships in defence for long-term coproduction.
In Russia, Modi will be the guest of honour at the prestigious St Petersburg International Economic Forum (SPIEF), a Russian-led economic platform that. Dubbed the Davos of Eurasia, the forum will see Modi and Russian President Vladimir Putin jointly address a large audience of over 5,000 influential political leaders, economists and business heads.
The US visit in June, a source said, is aimed at allowing Modi and Trump to get to know each other better. The objective is to have a one-on-one before the two leaders head for G-20, added the source.
The Hamburg G-20 Summit is already being billed as a pivotal moment for global trade, given Trump’s strong views on the grouping and its stated purpose on dissolving trade protectionist measures.
India is hoping that the Prime Minister’s prior visits to Washington, Berlin and Moscow will help him develop a clearer view on how to position New Delhi at the high table where there is expected to be some hard talk on reframing an apex arrangement for global economic governance.
22 May 2017, 05:33 AM