India’s budget will draw more FDI: Industry Leaders US
Nirmala Sitharaman Presenting her second budget to Parliament on Saturday, gave tax breaks to foreign investors and especially to those including sovereign wealth funds willing to place a long-term bet on the economy.
She said the budget was aimed at boosting incomes and increasing purchasing power, stressing that the fundamentals of the economy were strong and inflation was well contained.
WASHINGTON: Finance Minister Nirmala Sitharaman’s 2020-21 budget will improve the ease of doing business India and draw more foreign direct investment, said US industry leaders.
“After a slowdown in growth, India’s global investment outlook remains strong and therefore the budget was a great opportunity to make global sentiment a reality.”
Measures such as simpler GST refunds, no audit requirement for MSMEs with up to Rs 5 Cr turnover, instant issuance of PAN by furnishing Aadhaar, pre-filing tax returns, faceless appeals and appraisals will further improve India’s reputation from a business perspective that is simple to do. Such moves together demonstrate that the tax policy of India is moving in the right direction.
Noting that e-commerce is a bright spot for the Indian economy and expected to reach USD 84 billion by 2021, Aghi urged the government to rethink its decision to place TDS on e-commerce at one percent.
While the USIBC hoped that the budget proposal would see an increase in the foreign direct investment (FDI) allowance for the insurance sector, “we look forward to continued engagement with the government on reforms needed to bring fresh investment into a critical sector”.
Classifying the budget as an all-inclusive, growth-oriented and disruptive budget, Karun Rishi, president of the U.S. Indian Chamber of Commerce, said he stressed the aim of the Indian government to build a strong foundation for the goal of making India a 5 trillion dollar economy by 2025.
“Nirmala Sitharaman has provided a huge boost to the business morale and entrepreneurship of the country. National Logistics Policy, which is much needed, will promote tourism, manufacturing and job creation. Increased attention to the infrastructure sector is a welcome step”.
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