India should set up defence-specific SEZs: Study

The Indian government should establish dedicated defence-specific SEZs, apart from providing a tax-equalisation subsidy, as the fiscal regime plays a critical role in defence market growth, says a study

The Indian government should establish a dedicated defence-specific Special Economic Zone (SEZ), apart from providing a tax-equalisation subsidy, as the fiscal regime plays a critical role in defence market growth, an industry study has said.

"The government is urged to consider the establishment of dedicated defence-specific SEZs, establishment of a tax equalisation subsidy linked to value of goods and services supplied to the defence sector, and exemptions to offset joint ventures from Research and Development (R&D) cess," said a joint study by the Confederation of Indian Industry and audit and advisory firm KPMG.

"The fiscal regime plays a critical role in any defence market in creating an environment that incentivises and supports long-term risk taking, investment and R&D required by the industry," the report said, adding that the general view of the global defence industry was that India currently has a comparatively aggressive and complex tax regime.

It said that with skilled intensive manufacturing capabilities and a world-class IT base, India had the "right ingredients to become a key link in the global defence supply chain.”

The study also sought exemption from R&D cess for joint ventures and implementing the offset obligations under the Defence Procurement Procedure introduced a couple of years ago to energise the defence market.
 

  • Like this story? Get our top stories by email.

    User

    US Stocks Surge Back Toward Bubble Territory

    Professor Robert Shiller's cyclically adjusted PE ratio shows, that US stocks are now more than 30% overvalued. That's more reasonable than the 100%+ overvaluation in 2000, but it's closing in on the level of the three other bubble peaks of the 20th Century: 1901, 1929, and 1966.

    Read Article...
     

  • Like this story? Get our top stories by email.

    User

    TrimTabs CEO: Government must buy shares

    Charles Biderman, TrimTabs Chief executive in his crusade against the US government's official states that the private demand, from companies, investors, hedge funds, and pensions just isn't there and the government must step in.

    Read Article...
     

  • Like this story? Get our top stories by email.

    User

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)