It will attract more FDI: US industry leaders

BQs:

Despite a slowdown in growth, the global outlook for investment in India remains strong and, therefore, the Budget was a great opportunity to convert the global sentiment into action. — US-India Strategic and Partnership Forum

Finance Minister Nirmala Sitharaman has given a massive boost to business confidence and entrepreneurship in the country. — USA India Chamber of Commerce

The decision (on making medical devices) would result in increased manufacturing in India leading to higher adoption rate for medical electronic equipment due to increased exports and cost-effective production. — US-India Business Council

Washington, February 2

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 have said.

Presenting her second budget in Parliament on Saturday, Sitharaman offered tax breaks to foreign investors and specifically those like sovereign wealth funds who are willing to place a long-term bet on the economy.

“Despite a slowdown in growth, the global outlook for investment in India remains strong and, therefore, the Budget was a great opportunity to convert the global sentiment into action,” said Mukesh Aghi, president of US-India Strategic and Partnership Forum (USISPF).

Complimenting Sitharaman for taking measures to boost investment in the infrastructure sector, including digital, Aghi said the USISPF believed the Budget could have gone further to liberalise sectors such as insurance that are in need of capital.

“On the ease of doing business, measures such as simplified GST returns, no audit requirement for MSMEs with up to Rs 5-crore turnover, instant issuance of PAN by furnishing Aadhaar, pre-filing of tax returns, faceless appeals and assessments will further enhance India’s image from an ease of doing business perspective. Together, these steps show that India’s tax policy is moving in the right direction,” Aghi said.

Welcoming the Budget, the US-India Business Council (USIBC) said that abolition of the dividend distribution tax (DDT) removed a major disincentive to foreign companies seeking to set up operations in India.

The Finance Minister has taken solid steps to increase foreign investment and boost “Make in India”, it said.

The announcement on formulating a scheme to encourage electronics manufacture and adapt it for making medical devices is a welcome move, the USIBC said, adding the council had made a recommendation in this regard to the finance minister before the Budget.

“The decision would result in increased manufacturing in India leading to higher adoption rate for medical electronic equipment due to increased exports and cost-effective production,” it said.

Terming the Budget as all-inclusive, growth-oriented and transformative, Karun Rishi, president of the USA India Chamber of Commerce, said it underlined the Indian Government’s intent towards building a strong foundation for achieving the goal of making India a $5-trillion economy by 2025.

“Finance Minister Nirmala Sitharaman has given a massive boost to business confidence and entrepreneurship in the country,” Rishi said. — PTI