Providing a better regime than neighbours and tax rates which are globally competitive.
Policy makers need to change their regulatory mind-set. Role of state should be minimised and government monopoly must end wherever possible. Wherever we have minimised the role of state we have better results ex. Airlines vs railways
India has a bad image of 30%+ tax charging economy, but our receipt is 22% due to exemptions. Also, bulk of litigation is around because of these tax exemptions.
Due to judicial delays, foreign investors insist on arbitration in other countries.
Issues:
- Complicated regulations
- Confusing bureaucracy
- Poor infrastructure
Ernst & Young Report, 2015
- India emerged as the most attractive investment destination followed by China, SE Asia & Brazil
- Perception of Investors improved regarding
- Macro-economic stability
- Social & Political stability
- Relaxation in FDI reforms
- Recent reforms bringing positive attitude:
- Investment in infrastructure – 100 smart cities
- Financial inclusion – JDY
- Proposal to reduce corporate tax from 30% to 25%
- GST
- Land Acquisition
- Way Forward: Government planning to
- Do away with many rules and regulations
- Bringing clarity in policies & Tax regime
- Developing world class infrastructure
- Red carpet not red tape
- 17/04/2016 Example : Twitter Sewa for Start-ups – to address various queries of start-ups in a time bound manner. A place where start-ups can virtually contact government, tell their issues. Reply from respective department in 24 hrs