Quote from Mr. P. Venkatesh, Director, Product Division, Maveric Systems on his expectations from the new Government:
- With regard to the fiscal policy, the new Government should reduce the corporate income tax rate and provide incentives for new investment in terms of accelerated depreciation as well as investment tax credit; this will help in triggering growth while controlling inflation. In addition to this, increased investments on rural development and employment, and removal of MAT on SEZ units will help trigger growth in the economy. Also, ensuring that safe harbour policies are implemented on transfer pricing will help in attracting foreign investment.
- With respect to the commerce policy, clearing lines of foreign investment across the industry i.e. minimizing the need for prior approval and the ongoing practice of incentives will help attract foreign investments into the country.
- Some alterations in the political policy could include fast tracking court cases through special courts and securing investments made outside India without due compliance; these will help in reducing corruption. Finally, reviewing the state financial transfers and administration will help accelerate growth.