New Delhi: Singapore Prime Minister Lee Hsien Loong said on Thursday India had conceded that it should not have described the city state as a "tax haven" in its "white paper on black money".
According to the visiting leader, Prime Minister Manmohan Singh acknowledged so when presented with ahigh-level protest from Lee, who said Singapore was "disturbed" to see itself in the government report. Talking to journalists, Lee said Singapore had even "demarched" India on the issue. "We have demarched the Indian government on this matter to put this record straight and explain why this is not true and it has been mistaken. And yesterday (Wednesday) when I met the PM, I raised this with him and explained to him that we should see significant and big investments from Singapore as a good thing, and we think this is bona fide. The PM acknowledged my point and he felt that he accepted the explanation and we should not have been cited in this way in that white paper. So I accept that."
The UPA government's white paper was brought out by the finance ministry earlier this year as a response to growing popular and political clamour about black money and the need to repatriate illegal funds parked in tax havens abroad. Singh's reported acceptance of a crucial error in judgment in the report would raise questions about the rest of the report as well.Reforms can help India grow at 8-9%: Lee
New Delhi: Singapore PM Lee Hsien Loong's protest over the city state being bracketed with tax havens came a day after he publicly described the Indian business environment as "complicated". On Thursday, Lee made a most sobering assessment of the Indian system. "In market risks, there will be ups and downs, but if you can minimize regulatory risk and political risks, it will be much easier for companies to come in and invest. The rules in India are complex; you have many levels of government. The requirements sometimes vary. Sometimes it in unavoidable, at other times it causes considerable concern to companies which have already committed. And for those who have not yet committed, they will have to make an assessment whether they want to take the risk."
There are not many heads of government who would venture into the complex world of Indian politics and economy, but Loong was obviously so well attuned to India's developments that he appeared not only comfortable talking about India's internal issues but was remarkably candid about both the nation's challenges and its strengths and ambitions.
Answering questions at a "Singapore Symposium" organized by the Aspen Institute, Lee was forthright in stating that India cannot actualize its potential if it ignored reforms and failed to develop political consensus on it. "India would be able to grow not just at 7% but 8-9% for another 5-10 years because the potential is there, human capabilities are there," he said, adding, there needed to be significant reforms and the opposition needed to be brought on board.
Asked what the world would be in 2032, Lee said it would depend on whether India and China were able to transform themselves peacefully. "...if there is a fracture either because of economic reasons or strategic reasons, and I hope not leading to... aggravation between America and China or China and India, it will be a different world," he added.
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WE MEAN BUSINESS: Lee Hsien Loong speaks to the media in New Delh on Thursday
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