Barack Obama praises PM Modi for 'bold policy' on tax reform

NEW DELHI: When PM Modi met Barack Obama on the sidelines of the G-20 summit on Sunday, the US president praised the "bold policy” move on GST reform in a "difficult” global economic scenario.

Modi first met Obama briefly when they were on stage to pose for a family photograph at the G-20 Summit venue. The two leaders had another opportunity to exchange views during an informal evening programme. Obama, in his intervention during the G-20 summit, praised Modi for the recent tax reform as an example of "bold policy” in an otherwise "difficult global economic scenario”.

On August 8, Parliament cleared the landmark Constitution (122nd Amendment) Bill, 2014, on the Goods and Services Tax. The GST is expected to encourage FDI into India, including from the US.

In his remarks at the G-20 opening session where he called for structural reforms to boost global economy, the PM acknowledged the role Obama had played over the past seven years. The US President had always been a strong proponent of building global partnerships, Modi said.

Modi, in his remarks, also laid out an agenda for structural reform as a means to revive global economic growth. At the opening session of the G-20 Summit in Hangzhou, the PM called for a more equitable system without barriers to access that bridges the digital divide and promotes skill development.

"We meet at a time when the global situation faces complex political and economic challenges,” Modi said. "A frank and even a difficult conversation will not be enough. What G-20 needs is an action-oriented agenda of collective, coordinated and targeted action,” he said. The PM highlighted some of the things the government has been attempting to do in a bid to meet growth aspirations. "We have an aim to improve the financial system, boost domestic production, enhance infrastructure and create a pool of human capital,” he said.

Modi said decisive steps were needed from the G-20 if the collective of the world’s largest economies was to bring benefit around the globe. "Our challenges are common. So are our opportunities. Connected machines, digital revolution and new technologies are laying the foundation for the next generation of global growth.”