Make in India: Govt hints at indirect taxes reforms
The government has covered a huge distance in terms of infrastructure — be it ports, highways or rural networks, Finance Minister saidThe Dollar Business Bureau
The Union Minister for Finance Arun Jaitley discussing on “India’s Path Forward and the Obstacles it Need to Overcome” in CNN ASIA Business Forum – 2016, at the Make in India program, in Mumbai on Sunday
Notwithstanding the ongoing political deadlock over India’s Goods and Service Tax (GST) regime, the government on Sunday hinted at reforms in indirect taxes to realise the country’s true economic potential.“What we have realised is that unreasonable tax demands never bring revenue. In a federal system it is difficult to get states to surrender taxation power. As far as indirect tax regime is concerned, GST is the big tool; it will do reforms in the way we do business. Even if India's GST model is watered down, we have to start somewhere,” Finance Minister Arun Jaitely said at the CNN Asia Business Forum 2016 at the Make in India Week.Pitching India as an attractive investment destination, the Finance Minister said the country has made tremendous progress in terms of making the domestic market easily accessible to foreign investors.“Infrastructure is an obstacle on the road to manufacturing. Lack of infrastructure makes it difficult for businesses to operate. The government has covered a huge distance in terms of infrastructure – be it ports, highways or rural networks—and have increased public spending in the past few months,” Jaitely said.Several industry leaders joined the Finance Minister in unison while sharing their views on Make in India. Cisco’s CEO John Chambers said, “18 months ago, I said, if you want to bet on one country, it is India as the country is in sync with the speed of innovation in the current digital age. Anticipating the market and adapting to change in market dynamics, India is moving at a fast pace in the digital era. If you still haven't invested in India you may miss the bus.”“India is a highly innovative place. We're pressing the pedal on getting digital,” said Banmali Agrawala, President & CEO, General Electric (South Asia).The Make in India Week which was inaugurated by Prime Minister Narendra Modi in Mumbai last week has attracted government representatives and investors from across the world.Since the formation of the Narendra Modi-led government and subsequent launch of the Make in India – aimed at making India a global manufacturing hub and growing the share of manufacturing up to 20% in the country’s GDP, besides creating employment and self employment for youth –foreign direct investment (FDI) inflow in India has gone up by 48%.