New Delhi: "The nature of the amendment introduced through the Finance Bill is more for clarification purposes, and not an amendment to the law" said Mr.Pranab Mukherjee, Minister of Finance, Government of India at an interactive session organized by the Confederation of Indian Industry (CII), and the Peterson Institute for International Economics in Washington D.C. Addressing the concerns of the U.S. business community with regard to certain legislative policies adopted by the Government of India recently, Mr. Mukherjee said that the Indian taxation system is completely clear and stable and that in every way, India is a great investment destination. With direct reference to the fear of retrospective taxation expressed by U.S. businesses, Mr.Mukherjee said that Indian law clearly states that no case that is more than six years old, can be re-opened.

Mr. Mukherjee further emphasized that with regard to global governance, the Bretton Woods Institutions have not changed as rapidly as some would have hoped, especially given the changing nature of the global economy and the advent of rising economies, especially in Asia. He said that the G-20 is a critical institution, as is the BRIC grouping since these represent countries with a substantial part in global world output, and these voices cannot be ignored.
Mr. Mukherjee also expressed confidence that with consensus, the Pension Fund Act, the Insurance Amendment Act and the Banking Amendment Act would pass by the end of the year. Additionally he said that the Goods and Services Tax (GST) and the Constitutional amendment necessary to reform the GST should pass by the end of the year and that the direct tax code should become operational in the next financial year.

Mr. Chandrajit Banerjee, Director General, CII in his remarks expressed concern about rising protectionism in many countries in the West, which is especially detrimental in the globalised world economy.

The session also featured remarks by Ms. Nirupama Rao, Ambassador of India to the United States, Dr. Fred Bergsten, Director of the Peterson Institute, and Dr. Arvind Subramanian, Senior Fellow, Peterson Institute.