2020 budget will attract more FDI: US industry leaders

WASHINGTON: The 2020-21 Budget presented by Finance Minister Nirmala Sitharaman will improve the ease of doing business in India and attract more foreign direct investment, US industry leaders said.

By presenting his second budget in Parliament on Saturday, Sitharaman offered tax exemptions to foreign investors and specifically to those such as sovereign wealth funds that are willing to make a long-term bet on the economy.

She said that the Budget was aimed at increasing income and improving purchasing power, highlighting that the fundamentals of the economy were strong and that inflation was well contained.

Despite a slowdown in growth, the global outlook for investment in India remains strong and, therefore, the budget was a great opportunity to turn global sentiment into action, said Mukesh Aghi, president of the Strategic Forum and United States-India Association (USISPF).

Live plus Elogiando a Sitharaman por tomar medidas para impulsar la inversión en el sector de infraestructura, incluido el digital, Aghi dijo que USISPF creía que el presupuesto podría haber ido plus lejos para liberalizar sectores como los seguros que necesitan capital.

En cuanto a la facilidad para hacer negocios, medidas tales como declaraciones de GST simplificadas, ningún requisito de auditoría para las MIPYME con una facturación de hasta Rs 5 Cr, la emisión instantánea de PAN mediante la entrega de Aadhaar, la presentación previa de declaraciones de impuestos, las apelaciones sin rostro y las evaluaciones mejorarán aún plus la India imagen desde una perspectiva fácil de hacer negocios. Juntos, estos pasos muestran que la política tributaria de la India se está moviendo en la dirección correcta ”, dijo Aghi.

Noting that e-commerce is a bright spot in the Indian economy and is expected to reach USD 84 billion by 2021, Aghi urged the government to reconsider its decision to impose a TDS of 1% on e-commerce.

This creates a differential treatment for sellers on these platforms and the cargo will eventually be transferred to consumers, he said.

Welcoming the budget, the United States-India Business Council (USIBC) said that the abolition of dividend distribution tax (DDT) eliminates a significant disincentive for foreign companies seeking to establish operations in India.

The finance minister has taken solid steps to increase foreign investment and boost Make in India, he said.

The announcement on the formulation of a scheme to encourage the manufacture of electronic products and adapt it for the manufacture of medical devices is a welcome move, said USIBC, adding that the council had made a recommendation on the matter to the minister of finance before the budget.

The decision would lead to an increase in manufacturing in India, which would lead to a higher adoption rate of medical electronic equipment due to increased exports and profitable production, he said.

While the USIBC expected to see an increase in the allocation of foreign direct investment (FDI) for the insurance sector in the budget proposal, we hope to continue the commitment to the government in the reforms necessary to bring new investments in a critical sector. said the Council.

Recognizing that India is operating under fiscal restrictions, the council continues to advocate greater investment of resources to modernize India's defense industry and underpin the automobile manufacturing sector, a critical engine of India's growth.

In describing the budget as an all-inclusive, growth-oriented and transformative budget, Karun Rishi, president of the Indian Chamber of Commerce in the United States, said he underlined the intention of the Indian government to build a solid foundation to achieve the goal of converting to India in a trillion USD 5 billion. economy by 2025.

The budget has presented a series of powerful reforms aimed at energizing the Indian economy through a combination of short, medium and long-term measures, he said.

“The Minister of Finance, Nirmala Sitharaman, has given a great boost to business confidence and entrepreneurship in the country. The much-needed National Logistics Policy will benefit trade, business and generate employment. A greater focus on the infrastructure sector is a welcome step, ”said Rishi.