Undid a mistake of the past by removing retrospective tax- PM

India is receiving record foreign direct investments (FDIs) and the country’s forex reserve is a an all-time high.The government's move to end retrospective tax signified the undoing of a mistake in made in the past. Speaking at an annual session of the Confederation of Indian Industry (CII), on Wednesday, Prime Minister Narendra Modi  said we undid a mistake of the past by removing retrospective tax. It will increase trust between the government and the industry.The feedback and appreciation from industry in this regard has been great to see.

In 2012, the United Progressive Alliance government controversially changed tax laws retrospectively. International companies which had acquired assets of Indian companies before then were told they had to pay huge amounts. This led to a fierce legal fight between the government and the companies. PM Modi highlighted the collaboration between the government and the Indian industries to make available face masks, PPE kits, and other essential supplies need to fight the coronavirus disease (Covid-19) pandemic. Citing the reports of "record hiring" in the IT sector, the prime minister said it was only possible due to the growth of digitisation and demand.