Ambassador Garcetti says improved taxation, and regulatory system would further expand India-US economic ties
US Ambassador to India Eric Garcetti on Tuesday said “opaque” corporate tax practices in India continued to create hurdles for American companies that want to set up shop In India. While supporting India’s “Atmanirbhar Bharat” or self-reliance policy, he said that New Delhi should not view its self-reliance as a “fortress”. He added that foreign investment redirected from China was not flowing to India at a fast enough pace.
US Ambassador was speaking at an event organized by the Indo-American Chamber of Commerce (IACC) in New Delhi on Tuesday.“Opaque corporate tax practices are still a barrier to too many (US) companies that want to be here,” he said.
“Export control and policies have to change if India is going to achieve her goals… We have a $40 billion deficit with India and an even greater one with China. We want to see FDI (foreign direct investment) from China shift here… but FDI isn’t flowing into India at the pace that it should. Instead, it’s going to Southeast Asia in countries like Vietnam,” pointed out Garcetti.
According to US government data, in 2022, the US goods and services trade deficit with India was $45.7 billion, and a whopping $758.4 billion with China. After the COVID-19 pandemic, corporates in the West began diversifying investment away from China, the world’s largest manufacturing hub.
Without naming China, the US Ambassador also said India and the US need to work together to create international standards for technology and telecommunications. “We have to decide these standards together. It’s exciting to see this happen — 4G, 5G open RAN Network. Can we define that in a way that’s very different from our main competitor in the world who wants to use telecommunications to spy on its citizens and also spy on others around the world,” he asked and also stressed want of protections for intellectual property.
Speaking on the need to do away with “opaque” tax practices in India, the envoy said US companies wanted reassurance and protection for intellectual property. “They want to invest but we have to make sure that there’s protection for intellectual property. Courts often decide that there’s been violations of intellectual property but then there’s no consequence. This is now increasingly important to Indian companies too because they are producing patents at a roaring rate,” said the US Ambassador.
The US Ambassador also cautioned against Modi Government’s Atma Nirbhar policy (Self-reliant policy.) “We do want a self-reliant India but no country can be self-reliant anymore… The rhetoric that everything has to be made here in India will slow down the pace if you tax inputs. If you tax inputs, you tax your outputs. You’re not taxing us, you’re not protecting a market. What you’re doing is limiting a market,” he said.
For all the latest updates, download PGurus App.
- Supreme Court rejects plea to tally all VVPAT slips with EVM votes; says ‘no going back to paper ballot’ - April 26, 2024
- US report citing human rights violations is deeply biased: India - April 25, 2024
- Kotak Mahindra Bank shares tank 13%. Market Cap erodes by Rs.37,721 cr post-RBI action - April 25, 2024
Strange – America is opaque on taxation than India