New Delhi: Turkey has zeroed in on India as a strategic partner to accelerate the growth of the country. In 2006 it was ranked as 13 in terms of FDI inflow; over 1 million motor vehicles were produced in 2006; it has an energy corridor; is a terminal of Europe; boasts of low taxes and incentives and is an EU accession country, all of which contribute in making it an attractive investment destination.
According to Mr Alpaslan Korkmaz, President and CEO, Investment Support and Promotion Agency of the Republic (ISPAT) at a meeting organized by CII and Society of Indian Automobile Manufacturers (SIAM), Turkey was identified as a new growth centre for Indian and global companies.
With structured reforms in public sector, social security, financial sector and tax structures there is an improved investment climate that is likely to accelerate privatization in Turkey and in the process provide Indian companies access to EU, Central and Eastern Asian markets.
Advantages that Indian companies can leverage
* Growing domestic market
* Institutionalized economy
* Qualified and cost effective labour
* Suitable environment for infrastructure development and manufacturing
* Special investment zones where companies can get 100% exemption from custom duties and assorted duties.
* Government to provide100% exemption from corporate tax for producer companies and 100% exemption from VAT and special consumption taxes.