Abolition of retrospective taxation- New Delhi, September 15 (PTI) Defense Minister Rajnath Singh said on Wednesday that trust between government and industry had strengthened after the removal of the retrospective tax regime and that the Center would come up with new ideas to further boost the country’s economic growth. welcomes.
Addressing the Indo-American Economic Summit hosted by the Indo-American Chamber of Commerce via videoconference, Singh said there are many opportunities for joint production and common development of military equipment between major US defense companies and Indian.
He also said that this cooperation will go a long way in enhancing the bilateral economic dynamism of the two countries.
The defense minister said India is a strong and reliable investment destination and US companies should focus on technology transfer through joint ventures.
He referred to several decisions taken by the National Democratic Alliance (NDA) government to boost economic growth and said global investors are now being greeted with a “red carpet” instead of “red tape” in India.
“We expect double-digit growth for fiscal 2022 despite the challenge of COVID-19. But the real challenge will be to maintain a healthy growth rate of seven to eight percent in the years after 2022,” said Singh.
He also said the government is preparing for dynamic development throughout this decade.
Speaking to senior officials of various defense companies, the Minister of Defense said, “We are ready to act as a friend, a philosopher and a guide with whom you can openly discuss issues and problems related to the industry and business. “
He said: “The coronavirus pandemic has presented new challenges in terms of disruption of supply chains, slowing industrial activity, negative growth in the travel and tourism industry and there is no doubt that it is necessary to restore normality and the way to go. “Indo-American cooperation will play an important role in the decision.
The Minister of Defense said: “We have formulated progressive and investor-friendly tax policies. We have said goodbye to retrospective taxation” (Abolition of retrospective taxation).
Singh said, “Confidence between government and industry has increased after the tax abolition from the last date. In doing so, we have rectified the mistake of the previous government (UPA)”.
Significantly, last month the government abolished the controversial retrospective taxation. This law came into effect about nine years ago.
Singh called on industry to focus on technology transfer through joint ventures to realize India’s true potential in the defense sector.
“Foreign OEMs (original equipment manufacturers) can set up manufacturing establishments on their own or can partner with Indian companies through joint ventures or technology agreements to take advantage of the” Make in India “initiative “”, did he declare.
Expressing his confidence that American companies will find India a major investment destination for defense manufacturing, the Defense Minister assured them that the government welcomes new ideas to create a good business environment in India.
