BudgetSpeak #9: Amar Babu: Need to rectify inverted tax structure

03 Jul,2014

By Amar Babu

 

This Budget marks the first litmus test propelling the development agenda; the past years have witnessed an economic downturn and a downturn of domestic growth. The Budget should address the issues curtailing investment sentiment and bring renewed optimism for sustained economic growth; conversely the government should quickly amend the policy paralysis with regards to the ease of doing business.

 

Some important points that the government should keep in mind:

>> Despite being key to boost domestic manufacturing, component ecosystem is not yet ready in India, for which, government needs to take a series of actions.

 

>> Stability in taxation and regulatory regime; conducive business environment that include GST rollout; and creation of a robust market for locally-made products are some of the vital elements. There is also a need to rectify the inverted tax structure.

 

>> The new government would introduce long-awaited GST that would also help GDP to grow, and bring in new investment for the sector.

 

Amar Babu is Managing Director, Lenovo India and President of MAIT

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