World Economy

EU Lends Support to India’s New Tax Regime

(From L to R) Narendra Modi, Donald Tusk  and Jean-Claude Juncker in New Delhi, Oct. 6.(From L to R) Narendra Modi, Donald Tusk  and Jean-Claude Juncker in New Delhi, Oct. 6.

The European Union gave thumbs up to India’s Goods and Services Tax saying the new tax regime would facilitate ease of doing business.

Visiting EU leaders also welcomed India’s efforts to promote economic and social development and expressed interest in participating in initiatives such as ‘Make in India’, ‘Digital India’, ‘Skill India’ and ‘Start-Up India’, PTI reported.

“The EU closely follows Prime Minister (Narendra) Modi’s economic reforms, including the historic introduction of the GST, which can facilitate ease of doing business and promotes market integration in India by realizing a simple, efficient and nationwide indirect tax system,” a India-EU Joint Statement issued during India-EU Summit, said.

The 14th annual summit between India and the European Union was held in New Delhi on Friday. India was represented by Prime Minister Narendra Modi. The EU was represented by Donald Tusk, president of the European Council, and Jean Claude Juncker, the president of the European Commission.

Modi appreciated the ongoing participation by EU companies in the flagship initiatives and called for their deeper engagement in India’s developmental priorities.

The statement further said that the EU side encouraged the greater participation of Indian business organizations into the Enterprise Europe Network.

“The leaders noted the progress made in EU-India cooperation on resource efficiency and circular economy. Both sides agreed to enhanced cooperation and exchange of experience and best practices in the field of Intellectual Property rights and public procurement,” it said.

They expressed their shared commitment to strengthening the economic partnership between India and the EU and noted the ongoing efforts of both sides to reengage actively towards timely relaunching negotiations for a comprehensive and mutually beneficial India-EU Broad Based Trade and Investment Agreement (BTIA).

With regard to import tolerance level of tricyclazole in rice the relevant plant protection companies will be invited to present new scientific data in order for the European Food Safety Authority to carry out an additional risk assessment without delay, the statement said.

On this basis, the European Commission would expeditiously consider whether to review the above mentioned regulation.

Leaders also reaffirmed their commitment to work together with all members of the WTO to make the eleventh WTO ministerial conference a success with concrete results.

Meanwhile, World Bank President Jim Yong Kim said Thursday that the GST is going to have a hugely positive impact on the Indian economy, even as he insisted that the slowdown is temporary.

“We think that the recent slowdown is an aberration which will correct in the coming months, and the GDP growth will stabilize during the year,” Kim said.

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