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
.webp)
Artemis II and the economic outlook for lunar infrastructure
By Axel Miller | 01 Apr 2026
Artemis II will test deep-space systems and support future lunar missions, shaping the next phase of the global space economy.
Synthetic diplomacy: The $50 billion mirage and the new era of market-moving deepfakes
By Cygnus | 30 Mar 2026
Synthetic diplomacy shows how deepfakes could trigger market volatility, highlighting the growing need for verification in global financial systems.
AI war shifts gears: chips, drones reshape global power
By Cygnus | 27 Mar 2026
AI competition is shifting as chips, drones and supply chains reshape global power, impacting tech, defense and business strategies.
Trump’s Iran strike delay lifts markets, but risks remain elevated
By Axel Miller | 24 Mar 2026
Trump’s Iran strike delay eased market fears, sending oil lower and lifting Sensex. Risks remain as geopolitical tensions continue.
The rise of the ‘ghost executive’: how autonomous AI agents are entering the C-suite
By Cygnus | 17 Mar 2026
Autonomous AI agents are influencing business decisions and reshaping leadership structures as companies adopt agentic AI systems in 2026.
The sky is closing: The end of the global crossroads
By Axel Miller | 16 Mar 2026
Middle East airspace disruptions are forcing airlines to reroute global flights, raising costs and reshaping aviation networks in 2026.
Living in the “New Gulf”: how conflict is reshaping cities and infrastructure
By Cygnus | 16 Mar 2026
Gulf states are redesigning infrastructure, air defenses and aviation networks as regional tensions reshape urban resilience strategies.
The Petro-Tech Pivot: Why Your Next Phone Is Built on Shifting Sands
By Cygnus | 12 Mar 2026
Rising crude prices are reshaping electronics manufacturing as petrochemical costs drive pressure across the global tech supply chain.
Hardened compute: The rise of the data bunker
By Axel Miller | 11 Mar 2026
Explore how AI demand and geopolitical risk are driving investment in fortified data centers worldwide.
Latest articles
