There is renewed optimism about the Indian economy ever since the PM Modi government has taken over, Mr Osborne who is in India on a two-day visit told NDTV in an exclusive interview.
Britain's Finance Minister George Osborne says there is renewed optimism about the Indian economy ever since the PM Modi government has taken over. "There is a lot of buzz and excitement about India. Over the last seven weeks, there is a real sense that India is firing on all cylinders," Mr Osborne who is in India on a two-day visit told NDTV in an exclusive interview. "That's why I took the decision to get on the plane to meet Prime Minister Modi," he said. (
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Talking about the retrospective tax changes brought about in the 2012 Budget by the then UPA government that made British telecom giant Vodafone liable to pay tax in India, Chancellor Osborne said, "It sent a very bad signal to investors all over the world", adding, "Investors around the world felt this is not a favourable climate for investment. The previous government saw how it (retrospective tax changes) impacted sentiment. It was one of the things that contributed to the sense that Indian economy is not firing on all cylinders."
When asked if he would tell his counterpart Finance Minister Arun Jaitley to scrap the retrospective tax changes in the Budget, Mr Osborne said, "I don't want to tell any country how to manage their tax affairs. But its important that the exciting future that Prime Minister has mapped out is followed through." (
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He reiterated that good days are here for the relationship between India and Britain. "To borrow the Prime Minister's phrase, good days are coming, acche din for Britain and India's relationship.'
Talking about defence deals and whether there was hope still for a Eurofighter defence deal after delays in the Rafale deal with France, Mr Osborne told NDTV, "The previous government chose France as its preferred partner. If the current government wants to change it we will talk to them. But we are looking at future deals."
He also said that Britain will open up a one-billion pound line of credit for British companies to invest in India's infrastructure adding that he is hoping more Indian companies would invest in the UK. "We want to create jobs," he said.