NEW DELHI: NITI Aayog has released a policy working paper that aims to address long-standing concerns of foreign investors on tax predictability and dispute resolution to strengthen India’s investment climate.
As India advances towards its 'Vision 2047', creating a transparent, predictable and efficient tax framework is essential for long-term growth. NITI Aayog's ‘Consultative Group on Tax Policy’ (CGTP) focuses on facilitating ease of doing Business, promoting FDI, simplifying tax laws and building a future-ready system.
Reflecting the spirit of collaborative governance, the working paper was developed through extensive stakeholder consultations, with drafts shared for comments and suggestions prior to finalisation.
NITI Aayog CEO BVR Subrahmanyam highlighted India’s sustained growth in FDI and foreign portfolio investment (FPI) over the past two decades, reflecting strong economic fundamentals.
He noted that refining approaches to Permanent Establishments will provide greater clarity and predictability in tax regulations, thereby attracting new foreign investments and encouraging expansion of existing multinational corporations.
The launch witnessed participation from representatives of CBDT, DPIIT, ICAI, and CBC, along with domain experts from Lakshmikumaran & Sridharan, Deloitte, EY, and others, underscoring the spirit of public–private collaboration in advancing tax policy reforms and fostering a more predictable investment environment.
The working paper highlights that FDI and FPI are recognised as vital catalysts for India's economic growth. A stable tax regime is crucial for instilling confidence in foreign investors.