No incentives for exports
28 Feb 2007
Welcoming
Budget 2007 presented by the finance minister, P Chidambram
today, as commendable for having exceeded expectations
in terms of rural development, education and agriculture
, Moon B. Shin, managing director, LG Electronics India,
says it is commendable that the economy has seen a GDP
growth of over 9 per cent, while providing an impetus
to inflation control.
However, the budget 2007 is not very favourable to domestic
industry and trade. Also increase in education cess
from 2 per cent to 3 per cent will prove to be an additional
burden to the common man and corporate alike. Also,
the budget has not provided any incentive for exports,
acting as a hurdle to India emerging as an export hub.
No sops have been announced to curtail the effect of
the inverted duty structure.
Specific to LG India, the tax holiday extension for
in-house research and development facilities was an
extremely welcome step, since we have devoted substantial
investments in research and development in India.
Positives aspects of Budget 2007:
-
Inflation control measures
-
Tax holiday extension for 5 more years on in-house R&D
-
Focus on rural development, agriculture, education and health care
-
Reduction in peak import duty from 12.5 per cent to 10 per cent on non agricultural products
-
Reduction in prices of fuel from 8 per cent to 6 per cent
-
Proposal for unification of telecom taxes
-
Reduction in Central Sales Tax from 4 per cent to 3 per cent
Expectations Not Met
-
Removal of inverted duty structure especially in lieu of current free trade agreement regime
-
No major infrastructure development projects announced especially for ports and special economic zones.
-
Sunset clause on export oriented units not extended
-
No incentive for IT and ITES industry
Latest articles
Featured articles
Hariman Sharma lets apple travel to India’s warmer climes
10 Feb 2025
Apple, which was the preserve of the cooler Himalayan region in India, is now everywhere – in the East, the West and the South - thanks to one enterprising Himachal farmer, Hariman Sharma.
The cost of neglecting water transport
03 Feb 2025
Inland water transport is widely recognised as a cheaper and environment friendly mode of transport and, as per a report prepared by RITES
Crypto Currencies Trying To Undermine Global Financial System
27 Jan 2025
US President Donald Trump, it seems, is the latest to join the frenzy for personal or corporate currency, with $TRUMP, or what they call a meme coin, giving a further boost to his crypto image.
As costs of saying final goodbyes rise UK families resort to crowdfunding to pay for funerals
By Axel Miller | 16 Jan 2025
The cost of saying a final goodbye to loved ones in the UK has reached a grim new high, leaving families grappling with unexpected financial burdens.
The life and times of Manmohan Singh, former Prime Minister of India
By Cygnus | 28 Dec 2024
On 27th December 2024 India and the world lost one of their finest statespersons in a hundred years. Manmohan Singh, born on 26th September 1932, in Gah, Punjab (now in Pakistan)
The remarkable Ratan Tata
By Kiron Kasbekar | 23 Oct 2024
One newspaper report of Ratan Tata’s passing away showed an old photo of him climbing into the cockpit of a Lockheed Martin F-16 fighter.
Lighter than air, yet very, very powerful
By Kiron Kasbekar | 03 Jan 2024
In March 2013 Chinese scientists pulled off a remarkable feat. They created the world’s lightest aerogel. Tipping the scales at a mere 0.16 milligrams per cubic centimeter – that’s a sixth of the weight of air!
COP28 explained: A closer look at COP28's climate change solutions
By Aniket Gupta | 27 Dec 2023
The 28th United Nations Climate Change Conference, also known as COP28, took place from 30th November 2023, to 13th December 2023, at Expo City in Dubai, United Arab Emirates.
What is a Ponzi scheme?
By Aniket Gupta | 06 Dec 2023
Ponzi schemes have long captivated the public imagination, drawing unsuspecting investors into a web of illusion and deception.
Business History Videos
History of hovercraft Part 3...
Today I shall talk a bit more about the military plans for ...
By Kiron Kasbekar | Presenter: Kiron Kasbekar
History of hovercraft Part 2...
In this episode of our history of hovercraft, we shall exam...
By Kiron Kasbekar | Presenter: Kiron Kasbekar
History of Hovercraft Part 1...
If you’ve been a James Bond movie fan, you may recall seein...
By Kiron Kasbekar | Presenter: Kiron Kasbekar
History of Trams in India | ...
The video I am presenting to you is based on a script writt...
By Aniket Gupta | Presenter: Sheetal Gaikwad
view more
