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The UK India Business Council (UKIBC) has extended its congratulations to Finance Minister Nirmala Sitharaman and the Government of India on the presentation of India's Union Budget 2024-25.
In a statement, UKIBC welcomed the government's proposal to reduce the corporate tax rate for foreign companies from 40 per cent to 35 per cent, signalling a step towards greater parity and encouraging further foreign investment. According to the statement, the council also expressed anticipation for the detailed announcements on foreign direct investment (FDI) that are expected to be finalized and published soon. The Indian government has set forth an ambitious vision for a "Viksit Bharat" (Developed India) by 2047, an agenda strongly supported by UKIBC and its members. The council highlighted key areas where UK companies are already making significant contributions, such as employment and skilling, energy transition, manufacturing, and research and development. These sectors are seen as critical to India's growth and are where UK businesses, in collaboration with Indian partners, are actively engaged. Richard McCallum, Group Chief Executive Officer of UKIBC, commended the corporate tax reduction, stating, "UKIBC welcomes the announcement on corporate tax reduction for foreign firms, which provides great encouragement to foreign investors. Continued progress towards a level playing field for all investors will help unlock higher levels of international investment in India." McCallum also noted the government's intention to simplify FDI norms, emphasizing the importance of facilitative provisions that maximize the benefits of sectoral cap liberalization. He said, "We also note the intention to simplify FDI norms. We look forward to more details on this and recommend facilitative provisions that maximise the full extent of the sectoral cap liberalisation. For instance, in sectors like defence and insurance, among others." He pointed out sectors such as defence and insurance where these changes could be particularly impactful. The statement from UKIBC also praised the Indian government's efforts to promote strong economic growth while maintaining fiscal stability and managing inflation. "The overall emphasis on economic stability and growth combined with strong fiscal management provides continued certainty for global investors. India is the most exciting economic story in the world today. We see India not simply as a market but as a strategic partner - part of our R&D chain, technology chain, talent chain and supply chain," said McCallum. The statement said that the announcement of a five-year vision document to assess the financial needs of the economy is seen as a strategic move to support India's trajectory towards becoming the third largest economy in the world. The UK invested in supporting innovative sustainability technology, and British banks provide billions in climate financing to India. UK universities are collaborating with Indian industry and academic institutions to develop talent and co-create technologies to address global development challenges in healthcare, climate change, and food security. (ANI)
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