New Delhi: Expressing serious concerns over the DTC bill, special economic zone (SEZ) entrepreneurs today said the proposed tax provisions would hit employment and drive away investors from the special economic zones, reports PTI.
Export Promotion Council for export oriented units (EoUs) and SEZs (EPCES) said that by altering the SEZ Act through the DTC bill, the government is sending a wrong message to investors.
"These provisions do not meet the requirement of the SEZ scheme fully and would very seriously affect employment, exports and investment in the SEZs," EPCES chairman R K Sonthalia said here in a statement.
The bill, which was tabled in Parliament yesterday, proposed that the SEZs notified on or before 31 March, 2012, will get income tax benefits. And units in SEZs that commence commercial operations by March 2014 shall be allowed profit-linked deductions permitted under the Income Tax Act 1961.
"Time period provided for the new unit is insufficient.
Hence this time period needs to be extended further," he said.
Mr Sonthalia said that as the SEZ Act was just implemented four years back, it should not have been altered.
"By altering the SEZ Act through the DTC bill, we are sending a very wrong message to investors," he added.
Exports from SEZs have gone up from Rs22,000 crore in 2005-06 to Rs2,20,000 crore in 2009-10.
Direct employment in SEZs have gone beyond 5,50,000 people and investment in the SEZs gone up to more than Rs1,66,000 crore.
"This shows the tremendous progress and this process needs to be accelerated further," EPCES director general LB Singhal said.
New Delhi: Buoyed by the 8.8% growth of the Indian economy in the first quarter this fiscal, industry today said the gross domestic product (GDP) may expand by around 9% during 2010-11, but cautioned against certain weak areas like financial services, reports PTI.
"Given this trend in GDP growth, we expect to close the year with an overall performance of close to 9%," Federation of Indian Chambers of Commerce and Industry (Ficci) president Rajan Mittal said.
Associated Chambers of Commerce and Industry (Assocham) president Swati Piramal said, "Overall GDP growth rate for the current fiscal will be between 8.6% and 8.8% as its growth will pick up from third quarter onwards."
Echoing the view, Confederation of Indian Industry (CII) said that strong GDP growth in the first quarter of 2010-11 is encouraging and it maintains India's position as the second fastest growing economy in the world after China.
"The economy will grow at 8.5% for the full year," CII director general Chandrajit Banerjee said.
However, Mr Mittal said that the government should put thrust on sectors like manufacturing and services.
"With the cushion of a better farm sector performance later this year, the policy thrust of the government should be to energise the manufacturing sector and prop up the financial, insurance and real estate services segment that has been lagging behind," Mr Mittal added.
CII, too, said that the demand side drivers of GDP seem weak with both consumption and investment showing poor growth.
"While growth in the agriculture was strong, the growth rate in mining and construction has been modest. Growth in the services sector could have been stronger if not for the moderation in financing, real estate and business services," Mr Banerjee said.
CII asked the government to implement measures to improve the business environment so that investment inflows continue to remain strong.
New Delhi: The economic growth rate of 8.8% during the first quarter ended June is almost in line with the expectations of Dalal Street, reports PTI quoting analysts.
"The growth rate of 8.8% is as per our expected line and is good. We were expecting that the economy will expand by 8.9%, but 8.8% rise is almost in our line," SMC chairman and managing director SC Aggarwal said.
"We did well during the first quarter and our economy is on right track," Bonanza Portfolio V-P (equity & institutional sales) RL Narayanan said.
Echoing the view, CNI Research CMD Kishore Ostwal said: "The number was very much in the line with Dalal Street expectation. Market did not react to the impressive growth as it was not a surprise."
The broader market did not gave any sharp reaction to the GDP data released today and the BSE benchmark Sensex was little changed after the growth rate flashed.
The 30-share barometer, which was under pressure since morning, was quoting at 17,865, down by 167 points at noon.
"Market is down, but may bounce back in the later half of the day," Mr Ostwal added.
Indian economy, the world's second fastest growing economy, expanded by 8.8% in the quarter to June on the back of robust manufacturing growth.
Manufacturing grew by strong 12.4% in April-June, 2010 against a 3.8% growth rate during the same period last year. Construction grew by 7.5% compared to 4.6%.