Make In India: Govt vows to remove barriers to businesses

The government on Monday pledged to remove entry barriers to business and ensure a competitive tax regime to push manufacturing growth under its 'Make in India' programme, even as it blamed high interest rate for slowdown.

"The programme aims at manufacturing low-cost quality products both for domestic as well as export market," Finance Minister Arun Jaitley said in the national capital.

Criticising the monetary policy of Reserve Bank of India Governor Raghuram Rajan, he said high interest rate is the singular factor which responsible the slowdown in manufacturing sector.

"The entry point into the manufacturing sector itself has to be eased. Our initial barriers have to be lowered and perhaps even removed. If we keep the doors closed, investments won't come in," he said at a Make in India' event.

Jaitley further said there is a need to ensure liquidity in the markets.

"We need to ensure capital is available, we need to ensure that those sectors which are starving we are in a position to provide adequate capital to those industries."

The success of bankers' retreat with Prime Minister Narendra Modi later this week and the 'Make In India' campaign will give a fillip to manufacturing, he added.

Jaitley also rejected Rajan's criticism of Modi's pet programme 'Make in India', saying that it is about manufacturing of quality products at low costs and it was not relevant whether they are sold in India or abroad.

"Whether Make in India is made for consumers within India or outside is not so relevant. The principle today says that consumers across the world like to purchase products which are cheaper and are of good quality," the minister said.