India has some of the world's most convoluted taxes, and enforces them with gusto. Paperwork is tricky, and rates for some goods are ruinously high
years, Indian planners hope that bullet trains will reduce the time taken for the 500km journey between Mumbai, the commercial capital, and Ahmedabad, the biggest city in Mr Modi’s home state of Gujarat, from six hours to just two. For now, laws that protect tiny properties are holding up the railway’s construction. Two years after breaking ground, the Japanese-financed project has not yet managed to acquire even half the land it needs.
Initial tweaks in August had little effect, but on September 20th the government abruptly decreed a sharp cut in corporate tax, from an effective rate of 35% to a far more competitive 25%. The move prompted Mumbai’s biggest stockmarket leap in a decade. The market’s instant, oversized joy suggests two things. One is that there is a great deal of pent-up energy in the Indian economy, waiting to be released by wiser government policies.
Though foreign direct investment stayed strong in Mr Modi’s first term, all but a trickle of the new money poured into services and a few big acquisitions, rather than job- or export-generating industry. The largest single deal saw Walmart, an American retail giant, splash out $16bn for control of Flipkart, an online retailer. The ink had scarcely dried on Walmart’s cheque before the government radically changed the e-commerce rules that had underpinned Walmart’s decision to invest.
Since the slowdown has taken hold, Ms Sitharaman has scrapped the most onerous of new taxes and compliance rules. She also announced the government would supports, and top up a range of schemes meant to ease access to export credits and housing loans. Amid a series of rate cuts by the, the government also imposed a slew of mergers between state-owned banks that will, in theory, improve their books and make them keener to lend.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Clashes as far-right EU lawmakers visit India-administered KashmirThe delegation of around 30 European lawmakers, including far-right deputies from Poland, France, Germany and Britain, met Indian Prime Minister Narendra Modi.
Read more »
India 'hand picks' far-right EU parliamentarians to assess troubled KashmirThe visit drew ire from rights activists and leaders of the opposition as the ruling BJP has barred foreign journalists and independent groups from visiting Kashmir, where a clampdown on dissent has continued since August 5.
Read more »
Toddler trapped 100 feet down well in India found deadA two-year-old boy trapped 100 feet down a well for four days in southern India has been found dead, despite a major rescue operation to try and save him.
Read more »
Five killed as EU delegation visits India-administered KashmirAnti-India demonstrations staged in around 40 different locations in India-administered Kashmir, including the main city of Srinagar, as a group of EU lawmakers made their visit to the disputed region
Read more »
Amazon pumps in more than $600 million into India unitsAmazon.com Inc has invested around 45 billion rupees ($634.20 million) into its ...
Read more »