The paradoxical growth of Indian economy: From doubled duties to limited accountability

The income tax department has unearthed a Rs 3,200 crore scam where 447 companies deducted tax from its employees but did not deposit with the government and diverted to further their business interests

Government doubles duty on textile items

In a move to promote domestic manufacturers in the textile industry, the government has doubled import duty on most of the goods to 20%, according to a report by The Hindu. However, the less developed countries including Bangladesh would continue to enjoy duty-free access to Indian markets.

However, an increase in import duties doesn’t always benefit the local market.

The government’s plan to impose a 25% safeguard duty on solar component imports might benefit the domestic manufacturers of these components but it will also raise costs for projects planned on cheaper, imported components by 15-20%. The Solar Power Development Association argued that the duty might put more than Rs 1 lakh crore worth of solar power projects in jeopardy.

Assam localites, meanwhile, look forward to their growing economy with the Britannia manufacturing plant.

Britannia opened its Rs170-crore manufacturing plant- its largest greenfield facility- near Guwahati this week. Know more about Britannia’s future plans and targeted growth in the North-East in this interview of Britannia’s MD with Mint. (cant find link)

Britannia logo

 

 

 

 

 

 

Besides manufacturing units, a growing economy also needs a neutral Internet.

A significant move of approval of net neutrality by the Indian government was observed earlier this month. The Chairman of the Telecom Regulatory Authority of India (TRAI), R.S. Sharma, talks about the importance of non-discriminatory Internet in a developing country like ours, and his take on the recent proposal by TRAI of public Wi-Fis in his recent interview with The Hindu.

However, a limiting accountability of company auditors hinders the economy’s growth. 

Following an amendment (Section 139) to the Companies Act in May this year to dispense with the requirement for an annual auditor ratification by companies, eighty-four of the 161 companies that held their annual general meetings between May 1and July 15 did not seek auditor ratification. The rule has come amid the rising cases of accounting frauds, limiting the accountability of auditors to shareholders and curtails their say on audit issues.

 

 

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