Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Industrial Policy - 2017 - A Discussion Paper

News and Press Release - Dated:- 6-9-2017 - Industrial Policy - 2017 A Discussion Paper Department of Industrial Policy and Promotion, Ministry of Commerce and Industry This discussion paper reviews the progress made in the last quarter century since the 1991 Industrial Policy and provides thoughts to facilitate discussions for formulation of a new Industrial Policy aimed at building a globally competitive Indian industry equipped with skill and scale and technology. 1. INDUSTRIAL POLICY 1991 1. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ments (d) Public Sector Policy (e) MRTP Act 1.3 The first key reform was abolition of industrial licensing except those included in a small specified negative list. 1.4 In order to attract foreign investment in high priority industries requiring large capital and advanced technology, approval for direct foreign investment upto 51% of equity in high priority sectors known as Appendix I industries was provided. 1.5 Access to advanced technology was enabled, by providing for automatic approval of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ted. Government, therefore, decided to adopt a new approach for public enterprises, which inter-alia indicated priority areas for growth of public enterprises in: (i) Essential infrastructure goods and services (ii) Exploration and expansion of oil and mineral resources (iii) Technology development and building of management capabilities in areas crucial for long term development of the economy where private sector investment is inadequate (iv) Manufacture products where strategic consideration .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

compulsory was 18. This list has progressively shrunk and currently license is required only in four areas, namely, cigars and cigarette on the tobacco, industrial explosives, electronic, aerospace and defence equipment, industrial explosives and hazardous chemicals. 2.2 Giant strides have been made in liberalising the Foreign Direct Investment policy. Foreign investment in most sectors is allowed upto 100% under automatic route. Around 90% of total FDI inflows are now through the automatic rou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

SD 60.08 in 2016-17). Highest ever annual inflow (US$ 60.08 bn) was received in 2016-17. FDI equity inflows increased by 52% during 2014-16 and 62% since the launch of Make in India. India is now ranked amongst top 3 FDI destinations (World Investment Report 2016, UNCTAD) and 9th in the FDI Confidence Index in 2016, up 2 places from 2015 (AT Kearney) 2.4 The change in public sector policy led to private sector participation in sectors of iron and steel, electricity, air transport, ship building, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the requirement for pre-entry scrutiny and the clearance of the industrial projects of big business houses by the MRTP Commission removed the barrier for growth of businesses. The Competition Act 2002 by bringing all public sector enterprises and departments of the governments at the Centre and State, barring a few which perform sovereign functions, under the Act, has obliterated the distinction between public and private enterprises and contributed to creating a level playing field in the m .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

global markets. 3.2 Restrictive labour laws: The tenor of labour laws has been overly protective of labour force in the formal sector. Though labour protection and security are required, the flipside is that it discourages employers from hiring workers on a regular basis. It has probably also led to entrepreneurs choosing to stay away from labour intensive sectors and opt for highly capital or skilled-labour intensive technologies sectors. 3.3 Complicated business environment: Complex and time .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

3.5 Low productivity: Productivity as measured by value added per worker and average wages in manufacturing in India are only one-third of that in China. Differences in productivities across sectors and across firms within the same sector make matters worse. Workers in India are overwhelmingly employed in low productivity and low wage activities. 3.6 Challenges for trade: Manufacturing sector especially exporters are facing challenges of stagnant/shrinking global demand and rising protectionist .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

factors work in tandem to increase costs of goods and services. They are strongly entwined, one feeds into another thereby exacerbating the disadvantages. The nexus needs to be broken at more than one link to ensure that the spin-off is in the positive direction. 4. INDIA AT AN INFLECTION POINT 4.1 India today, as it was in 1991 is at an inflection point. In 1991 the country rose to change from the brink of a financial crisis with foreign exchange reserves at the lowest, exports at the lowest, g .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d to be around 8-10 per cent. India is showing improvement on every important metric and several internationally reputed indices such as the Global Competitiveness Index, Logistic Performance Index and the Global Innovation Index. India holds large untapped potential. India is rated first among 100 countries on the growth, innovation and leadership index (Frost & Sullivan: 2015). The economy has all the right conditions to take-off and is expected to do so over the next decade. The decisive .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

udacious demonetisation of select high denomination currency are only a few initiatives that have prepared the ground for a higher growth trajectory for the economy. 4.4 It is time to shift from a policy of continuity with change in 1991 to radical and accelerated reforms for greater strategic engagement with the world. As often summed up- it is time to Reform, Perform and Transform. A comprehensive, actionable, outcome oriented industrial policy will enable Industry to deliver a larger role in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

keholders. Strategic objectives have to be delineated with measurable outcomes. The policy has to also ensure that it embeds into itself sectoral objectives and provides an overarching umbrella policy framework. The timeframe for implementation of the policy needs to be decided taking into consideration the changing economic and business cycles of the world and the Indian economy, geo-political trends and broad policy directions in the country. To begin with, the following strategic objectives a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ducts, significantly low value addition done in India and the minimal positive externalities from FDI. 5.2.2 Brand building should gain importance alongside achieving quality and scale. The quantum of value addition has to be increased at all levels. Larger the value addition, greater the positive externalities from economic activity. Creating complete value chains domestically and globally or integrating into existing chains is vital to ensure that the world market is accessed at the right time .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

countries, in select sunrise sectors like renewable energy, food processing, electronics etc. An FDI regime that balances the short term and long term benefits of inward and outward investments. Medium-term Attract $100 bn inward FDI annually and support outward FDI to assert Indian presence in world markets Increase the share of India in sourcing of top brands in sectors where India enjoys a distinct comparative advantage such as apparel and footwear MSME How can Indian MSMEs be plugged into th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ower, logistics, easing regulatory/compliance burden, reducing the cost of capital and improving labour productivity. 5.3.2 Industrial infrastructure in India suffers from lack of funds and inefficiencies. Infrastructure financing relies heavily on banks due to the lack of developed debt and bond markets. Increased pressure on infrastructure from rapid urbanisation exacerbates inefficiencies leading to high cost of logistics. Similarly the cost of power in India is higher than in most countries. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing and services and is predicted to impact all industries. The central role of technology in next generation business has to be acknowledged and appropriated to ensure greater productivity and competitiveness. 5.3.4 In an open world, domestic tax structure and duty rates are an important factor in deciding the direction of flow of raw materials and final products. High direct tax rates and a duty structure that favours import of final products can act as disincentives for domestic manufacturers .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for support. Eg Waste management, medical devices, renewable energy, green technologies, financial services etc. Leverage presence of a large public sector in core sectors and the forward and backward linkages created over the decades provides for captive source for investments and efficiency improvements. Medium-term Targeted measures to improve labour productivity in select sectors Creating a robust and safe digital infrastructure to support next gen digital technologies Improve business envi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

upon to provide them easier access to funds? Taxation How can the problem of inverted-duty structure be addressed and also be balanced against obligations under multilateral or bilateral trade agreements? How can incentives be linked to reforms and performance? Industry Standard Can industry-wide mandatory technical regulations be developed to address this gap? How can enterprises be encouraged to set up testing labs in India? 5.4 Employing gainfully, a growing workforce 5.4.1 India is now in t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n automation leading to job losses Disproportionately slower growth in creation of jobs as compared to growth in output Poor outcomes in education, skill and health leading to an inability to harness the demographic dividend 5.4.3 Illustrative outcomes and trigger questions Long term Gainful employment of the millions of aspirants who join the workforce over the next two decades Medium term Creation of jobs at the bottom of the pyramid Jobs to employ the large number of unskilled and semi-skille .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

trial growth as well as industrial emissions. Clean energy and cleaner industrial technologies have to be taken together. 5.5.2 Policies on utilisation of natural resources, including energy sources have to be aligned to support industrial growth. Sustainability has to be treated as integral to growth in all sectors and industry as a whole. A fine balance between industrial growth and improvement in environment and sustainability has to be achieved. Sectors that contribute to the latter should b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

m industrial activities? Which sectors need to be targeted to radically cut emissions? 5.6 Enabling ecosystem for technology adoption and innovation 5.6.1 India has the potential to diversify its strengths in the field of information technology. It is not just the largest software service provider, but can provide products and solutions and also become the Digital factory of the world , by becoming the vanguard of digital revolution. Education and R & D systems work in silos and often do not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Forum: GSTR 3B Rectification

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version