Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season
 ITR 2024: Here are 8 ways by which senior citizens can save on taxes this year

There's case to trim direct tax rates:Kamath
February, 22nd 2008
The Indian economy has been witnessing growth rates of 9% and above for the past two years. Going forward, we have the potential to be one of the fastest-growing economies in the world for several years to come. In this context, the Union Budget will be crucial in defining the growth trajectory of the country.

A look at recent data indicates that there are signals of moderate slowdown in growth, especially in the manufacturing and consumer durables sector.

Further, with increasing uncertainty surrounding the global economy, particularly the US, there is a strong case for ensuring a relative insulation of the Indian economy to global factors.

Domestically, high interest rates and an appreciating rupee have created cyclical headwinds even at a time when headline inflation numbers have been within reasonable limits.

According to RBI, risks to inflation persist mainly on account of the incomplete pass-through of increased global fuel prices and the increase in the global food prices. In assessing Indias economic performance, we must recognise the importance of the services sector, which has been the primary growth driver over the last decade.

This sector has transformed Indias growth by directly leveraging human capital to build a robust knowledge economy. Ensuring a supportive environment for the continued growth of this sector must therefore remain a priority.

Given these factors, the Union Budget should adopt a pro-active stance towards promoting growth and stability. As a direct boost to consumer spending, the Budget should include some cut in indirect taxes on consumer goods, particularly in segments where the multiplier effects are high. There may also be a case for some reduction in the direct tax rates, particularly since direct tax collections, for the first time, have crossed indirect tax collections.

Over the past few months, the appreciation of the rupee has affected some export-oriented sectors, including some areas within the services sector. With the increasing importance of the external sector to the growth process, the finance minister should consider articulating the governments expectation and stance towards exchange rate management and guidance to industry to prepare itself in this context.

The Budget must continue to focus on infrastructure and social and rural sector development programmes. The 11th Five-Year Plan emphasises the need to rapidly develop infrastructure. Increased budgetary support to infrastructure projects and social development programmes will not only promote supply-side growth factors, but will also enable a sustainable and inclusive growth model. In addition, this will also enable further development of India as a knowledge economy.

Overall, I expect the Budget to act as a continuation of the growth-oriented policies adopted over the years while seeking to address certain challenges that may have an impact on economic conditions.

(The author is MD & CEO, ICICI Bank)
Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting