Business News

Created By:- Parivartan Group

How To Turn The Tide By : Chetan Bhagat .

the UPA government must create a business-friendly tax regime  One of PM’s first announcements was to re-examine the recently proposed General Anti-Avoidance Rules (GAAR) tax provisions. with little room to invest in the country's infrastructure or job-creating industries.we need foreign capital if we want to be a high-income growth nation.It is obvious.and cannot provide as much growth as the country needs. The unattractiveness of India to foreign investors is a matter of great concern. . Our governments finances are in trouble.To restore investor confidence.Private Indian capital is limited.

India is no longer a hot investment destination right now.No matter how wonderful the growth prospects. arbitrary environment.Three top international rating agencies have downgraded India.and given them a reason to hate us.About the Foreign Investors   They love growth. .Hence. India attracted foreign investors for the first reason. Two.with our arrogant governments policies such as the GAAR we have created the uncertainty.they hate uncertainty.Now.people just cant part with their money in an uncertain.

or postponed for a year.any power in India is abused. .who does not believe in verbal communication as a human need.had to comment on how the new tax policies need to be reexamined.There is no need to sugarcoat inspectors have sweeping powers to question any transaction ever done by a company and label it as tax avoidance.Consequences of GAAR  Under these provisions.with every investor across the world receiving a warning about investing in India.or deliberated.It needs to be thrown out.The company has to prove itself innocent. Things became so bad that our ever-silent PM.The GAAR needs to be not just relooked at.As we know.One can only predict what will happen because of these provisions. The fallout of these announcements was terrible.

QUESTION?  So why did the government do it is not passing the necessary reform laws or doing much to open the economy.Why then pass these complicated measures that spooked even the most ardent India believers out ? .

ANSWER.In such an atmosphere.The government in India thrives on hubris..Actually.   One.It has power over the police.but the government wanted to spend way more money. .arrogance is bound to set the government was falling short on tax collections. Second.the collections were decent.never reforms the judicial system lest it gets efficient and controls all vital resources in the economy.It is used to passing unjust orders that common people in India are only too happy to accept.

 Third.the foreign investors too are its subjects.should be treated with respect or be given fair rights. .Contd.The government believes that like the common man.but subject to government approval for everything.The market system that the government keeps talking about is a market where there are free markets.the government does not believe the foreign investors are helping us.

and promise through strict laws that it wont be arbitrary ever again.  India needs to not only have an open mind.WAYS TO SOLVE THE PROBLEM!!!  The government needs to back off.needs to be passed to reassure investors. .but also be open for business.  Lawto protect the sanctity of markets and interests of participants.