Indian economy gets a boost from new investment reforms

Encouraging indicators in the Indian economy in theregular basis by the government too is a step in this
form of advanced tax collection and industrialdirection.
production at 17.6 per cent in the month of MarchTax reforms and incentives such as direct tax code
2010 have brought enough cheer to investors(DTC), higher float in indices for free trading etc are
investing in India. According to the Union Financeinitiatives that are expected to bolster more
Minister of India, Mr Pranab Mukherjee, these factorsinvestments into the thrust sectors. The doors have
are propelling the economy in the right direction.opened to international trade with signing of free
Owing to the euro zone financial turmoil and bettertrade agreements (FTAs) with economies such as
job security in the Gulf, investors too are returning toFinland and income tax agreements to avoid double
India and better monsoon and strong productiontaxation. The government has also set up two
output mean the growth story in India wouldincome tax overseas units (ITOUs) within Indian
continue to attract investments.Missions in Singapore and Mauritius. Eight more such
Exports have risen by 35 per cent to US$ 16.1 billion,units have further been approved in USA, UK,
on increasing demand in the western economies.Netherlands, Japan, Cyprus, Germany, France and
Better conducive environments prevail now in theUAE. These will facilitate smooth garnering of
states such as Karnataka, Kerala, etc., which havetaxation revenues without hindrances and tax
created industry friendly environs for doing businessevasions in cross-border transactions.
in India. The states are now implementing newThe growth trend is substantiated with the report
industrial policies, revised IT policies too. Businessdata that has come out recently. The Centre of
Investment opportunities have opened up in sectorsMonitoring Indian Economy (CMIE) in its report stated
such as infrastructure, power, etc., which have helpedthat it expects industrial production to grow by a
in boosting the economy in the northward direction.buoyant 9.2 per cent in 2010-11. The growth would
Overseas investors are now being guided throughcome on top of a 10.4 per cent growth in industrial
online facilitation platforms as OIFC, which engages inproduction, as measured by the Index of Industrial
providing facilitation advice through an expert panelProduction (IIP) in 2009-10, CMIE said.
on queries related to investment opportunities andThese factors are hence expected to help retain
doing business in India. The refurbished foreign directcontinuity in investment in prime sectors.
investment policy with updations scheduled on a