India on growth path, but business environment complicated: Singapore PM

Singapore prime minister Lee Hsien Loong, who is on a two-day visit to India aimed at strengthening bilateral ties between the two countries, called on Singapore companies to make more investments in India.

Addressing a business meeting organised by the Associated Chambers of Commerce and Industry in India (Assocham), the Confederation of Indian Industry (CII), and the Federation of Indian Chambers of Commerce and Industry (Ficci) today, Lee said India was on the road to growth, and asked Singapore companies to invest more in the country. He called on India to get involved in the ASEAN assimilation efforts. He, however, added that the Indian environment was a bit complicated for investors who sought policy stability.

Loong said when investors made a decision they looked for stability of policies and a reliable partner. "They look at the prospect and possibilities. That's the way all businesses happen," the Singapore PM said, while responding to a question on how business environment could be improved in India.

"India has been working on improving the environment, but it is something big companies would be paying attention to because they come here for long term...if you are not from the country, you will look at the prospects and the possibilities," he added.

Global companies and investors have been voicing concern over tax policies and lack of reforms in India and investors have kept plans on the sidelines awaiting clarity on policies such as retrospective taxation and GAAR (general anti-avoidance rules).

India's tax policies have come in for heavy criticism from across the globe and the government has taken a number of steps to address the concerns.