Benefits from SEZs to outweigh tax sops

Benefits from SEZs to outweigh tax sops
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First Published: Fri, Feb 29 2008. 01 20 AM IST
Updated: Fri, Feb 29 2008. 01 20 AM IST
New Delhi: The Economic Survey for 2007-08, a finance ministry publication, has agreed that the benefits derived from investments and additional economic activity in special economic zones (SEZs) along with the employment generated there will far outweigh the revenue losses on account of tax exemptions given to SEZs. On 17 August 2007, Mint had reported on a study by the Indian Council for Research on International Economic Relations (Icrier) , also commissioned by the finance ministry, which concluded that claims of big drops in tax revenues from the proliferation of SEZs has been grossly exaggerated and that the potential benefits in terms of enhanced economic activity and employment have been substantial. Staff Writer
Maharashtra leads states in exports
New Delhi: For the first time, the Economic Survey has come out with data on the origin state of exports. Maharashtra leads the way with 28.6% of all the exports in 2006-07, followed by Gujarat (19.2%), Tamil Nadu (10.4%) and Karnataka (10%). In terms of growth rate, Gujarat registered 66.1% growth over 2006-07, followed by Andhra Pradesh at 35.9%. Staff Writer
Trade deficit may fall short of projection
New Delhi: The survey suggests that India’s trade deficit in 2008-09 may actually narrow than what is being projected. A slowdown in world growth and import demand will also affect the prices of oil and other commodities. “Any resultant deceleration in their prices will benefit India by moderating the growth of imports in value terms,” says the survey. Staff Writer
E-commerce should be more WTO-compatible
New Delhi: The survey says India’s position on e-commerce should be more flexible as e-commerce is linked with several World Trade Organization agreements.?So,?compatibility?between these agreements and new legislation is needed in the area. “India’s position on non-imposition of custom duty on electronic transmission has been that given the inherent advantage India has in e-commerce...it can maintain a liberal regime,” says the survey. Staff Writer
Mixed bag for India in global exports tally
New Delhi: In 2006, India had atleast 1% share in the global exports of 36 commodities. Within these, India had a significant world export share of 5% or more in eight items. Five of these have had an increase of global share by 0.5 percentage point or more between 2002 and 2006, while three have lost global share. The former includes carpets, floor coverings, lac, gums and resins. Staff Writer
Domestic retailers welcome FDI proposal
New Delhi: Home-grown retail firms hailed the proposal to allow foreign investments in the sector. The survey had mooted allowing of a share of foreign equity in all retail trade. Future Group chairman Kishore Biyani said this could benefit domestic companies as “their business has become valuable”. Vishal Retail Ltd chairman and managing director R.C. Agarwal said, “Let the FDI come as it will help local firms fetch better valuation and continue expanding.” PTI
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First Published: Fri, Feb 29 2008. 01 20 AM IST