| Date: |
11-09-2014 |
| Subject: |
Government considering steps to revive SEZs: Nirmala Sitharaman |
NEW DELHI: The government will soon unveil measures to revive special economic zones (SEZs), refocusing them as exports and manufacturing hubs, commerce and industry minister Nirmala Sitharaman said on Wednesday.
The departments of commerce and revenue are actively considering the adjustments in taxes like minimum alternate tax (MAT) and dividend distribution tax (DDT), levies that have substantially reduced attraction of these zones proposed to boost exports.
The government could also allow dual use of infrastructure in non-processing areas for regular manufacturing. "Specific issues related to SEZs are being discussed, be it the taxation part or SEZ dual use. The policy is not just for exporters but also other manufacturers. It (dual use) will ensure optimum utilisation of zones. Developers, too, will get early returns," said the minister at the commerce department briefing to mark 100 days of the Narendra Modi-led government.
Other issues such as those relating to service tax, extending the tax holiday for the pharmaceutical industry and extension of customs ICEGATE system to the SEZ framework, are also being discussed by the government.
The government will soon announce foreign trade policy for 2014-19, which will be comprehensive and composite and focus on branding, packaging, targeted global engagements and products with high export potential. "FTP would hopefully come soon. We are in the process of consultations. The policy will be aimed to give direction to the economy and facilitate manufacturing," said commerce secretary Rajeev Kher.
More focused direction would be given to utilisation of FTAs and to establish new approaches to preferential trading with Latin America, CIS region and Africa. "With things not moving at WTO, it is becoming important to enter preferential trade agreements with different regions. We will focus on markets in China and Japan," said Kher. There is a need for a seamless South Asia and we are working towards that, he added.
The government will also strategise global trade engagements and conclude trade pacts where negotiations are in advanced stages, such as with the EU and Peru/Columbia. It has requested states to develop an export strategy. Additional measures for promotion of export of orthodox and packaged tea and GI branding of tea are likely to be announced in the foreign trade policy.
INDIA-CHINA BUSINESS TIES
"China is likely to announce establishment of industrial parks in India during their president's visit," said Sitharaman. India shares a large trade deficit of $36 billion with China. "India will ask China to set up manufacturing units for exports as it seeks to restore economic momentum and provide jobs for tens of thousands of people entering the workforce each month," she added.
Source: economictimes.indiatimes.com
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