NITI Aayog vice chairman Rajiv Kumar said that India has become a more attractive investment destination following the reduction in corporate tax rates but relocation of units from competitors such as China will depend on other factors as well, such as the ability of states to make their environment more business-friendly.
He said the lowering of minimum alternate tax (MAT) will once again make special economic zones attractive for setting up export-oriented units and that there is a need to set up coastal economic zones, which will be much larger than the run-of-the-mill SEZs.
He envisaged that the current measures taken by the government will significantly push up economic growth and GDP of India will grow higher than 7.5% in the second half of FY20.
The commerce ministry has sent the proposed National Logistics Policy, aimed at promoting seamless movement of goods across the country and reducing high transaction cost of traders, to the Cabinet for approval, a senior official said.
There is a need to reduce logistics, capital and power cost to make Micro, Small and Medium Enterprises (MSMEs) competitive in the international markets and to promote exports, said Nitin Gadkari, Minister for MSME.
“Steps should be taken to reduce the cost in the areas where it is easy to make the sector competitive and increase its employment potential,” he added.
As trade unions rejected Coal Minister Prahlad Joshi’s offer to hold discussions, a one-day strike in almost all coal mines and related establishments will be held against the decision to allow 100% FDI in mining.