Posts Tagged ‘EU’

Foreign Investors Protest India’s Tax Regime

Foreign Investors Protest India’s Tax Regime

Foreign Investors Protest India’s Tax Regime

In a demonstration of solidarity in economic diplomacy, the ambassadors and high commissioners of seven rich countries have jointly protested against features of, what they term, India’s “retrograde’’ tax regime.

😦

The ambassadors of the US, the Netherlands and Spain, high commissioners of the UK, New Zealand and Australia and the head of the European Commission delegation have expressed their anxiety over the “growing unpredictability in India’s tax policies’’ and written to finance minister Pranab Mukherjee seeking an appointment.

They said India’s policies were creating an “unquantifiable risk in investment planning’’.

The letter has been marked to commerce minister Anand Sharma, deputy chairman of Planning Commission Montek Singh Ahluwalia and cabinet secretary K M Chandrasekhar, among others.

🙂

The concern pertains to the application of punitive tax liabilities on deals with retrospective effect.

Their anxiety was triggered by the $2 billion tax controversy involving Vodafone’s $12 billion buyout of Hong Kong-based Hutchison’s stake in Hutch-Essar.

And now include tax troubles in deals such as

SabMiller’s acquisition of Foster’s Indian beer business,

Aditya Birla Nuvo’s acquisition of shares in Idea Cellular from AT&T Mauritius,

transfer of GECIS Global (Luxembourg) shares by GE to a consortium of US private equity funds and,

Vedanta’s acquisition of Sesa Goa shares held by Mitsui through a UK holding firm.

🙂

In other words, what was until now seen as a problem between tax authorities and Vodafone has now escalated into a standoff between the governments of seven nations, including the US and the EU.

Source : Times Of India 14/10/09

Indian Export to Register 10% Growth during 2010-11 :)

India-exports-growth

With all sectors including textile showing recovery, the total export from India is likely to register 10% increase during 2010-11.

🙂

However, the growth during this fiscal (2009-10) would be either flat or marginally negative, although export observed a marginal decrease during the last financial year due to global recession.

🙂

While, it is said that almost all the sectors in India were showing a stimulation or plus-growth, including automobile, plantation and engineering.

🙂

On the other hand, it is said that the economic situation is not really that bad and there is a sign of revival during the last two to three months whereas the year 2010-11 is said to be good for all the sectors, particularly textile, which was feeling the ”cyclic pinch” and that would be back to business in the year.

🙂

Though textile would continue to remain weak in 2009, there could be recovery in the year 2010 and once the demand from the USA and EU improves, it is expected to achieve a reasonable growth 🙂

🙂

However, though there was a steep export growth in textiles and clothing in the first half of 2008-09, there had been slowdown in demand from major markets, USA and EU, due to the global economic crisis.

😦