Doing business gets easier

Improved infrastructure, credit policy and electrification of rural areas in the economy have facilitated the adherence to some of the best global practices. While markets count on sustained inflow of funds by FPIs, a higher domestic tax rate on MNCs carrying out business in India, can affect the profit margins and the business sentiment. Tax norms must not conflict with the larger objective to control fiscal/trade deficit and facilitate business growth in the economy. On one hand, business-friendly norms governing KYC, relaxed position limits, flexible timelines towards broad-base investments and longer time-overlap with world markets — are being proposed. On the other —increased overheads/expenses for the businesses threaten to diminish the presence of MNCs, re-direct the flow of funds to international markets and affect the quality/tenure of investments and holdings. Despite rise in revenues, a very high tax rate can potentially impact the job situation across various sectors. To sustain the growth momentum and retain market confidence, a differential tax rate framework should be established for MNCs.

New Delhi

In the Ease of Business ranking, India has come close to top 50 as wished by the Prime Minister in 2014. These ratings are significant as in the last four years while China and South Africa have gone down 27 and 39 places respectively we have jumped 65 places. Being an election year, further improvement in 2019 ratings is unlikely as the government may focus more on welfare measures. But still it should try and focus on all parameters where it is still lagging below 100 rankings like land related issues, paying taxes etc. The Centre should also thank the non-BJP ruled state governments as it’s a team effort which has resulted in this improvement. We should not rest till we get into the top 50 in all parameters.

Noida

With reference to the news report ‘Symbol of New India emerging a mega power’ (November 1), Sardar Vallabhbhai Patel stood for national integrity and credited with integrating more than 550 princely states. Hence this 182-metre statue, the world's largest, should be a symbol of a united India with its geographical, economic and cultural diversity. Politics should not come in the way of our national integration. If we as a country can stand united without caste, religion, economic discrimination , it is the greatest tribute we can pay to Sardar Patel, the first Home Minister of independent India.

Secondly, tourism in India is a neglected sector which can be boosted by Sardar Patel’s statueand provide employment opportunities to the youth.

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Thane

Perhaps the Supreme Court’s direction to the Centre to provide details of the pricing and the selection of the Indian offset partner in a sealed envelope within 10 days will unravel the secrecy surrounding the Rafale deal. The government cannot for long hide behind the ‘confidentiality clause’ since it only covers the technical details and not pricing. Further, ‘national security’ cannot be invoked or cited as an excuse to escape accountability for money spent from the public exchequer. As one who took the unilateral decision to purchase the Rafale aircraft for a price three times more than that negotiated by UPA government and cut down the number of planes from 126 to 36, the Prime Minister has to break his silence lest people will come to believe that there is substance in the Opposition charge that crony capitalism and corruption are involved in the deal.

Maruthancode (TN)

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