We provide tax sops to small and micro units; China tells India
Updated: Sep 27, 2013 01:40:11pm
From Prakash Chawla
New Delhi, Sept 27 (KNN) China which has come to occupy the status of 'Factory of the world' gives a great focus to its small and micro enterprises helping the world's second largest economy to maintain stability in prices and employment situation. The point was highlighted in the China - India Financial Dialogue held at Beijing yesterday.
“(China’s) fiscal policy has focused on adjusting the expenditure structure, reducing administrative spending, supporting structural adjustment and improvement of people’s well-being, and providing tax incentives to small and micro enterprises…” said the joint statement after the sixth meeting within the framework of the China-India Financial Dialogue launched in 2005.
Analysts feel that giving a boost to the small and micro enterprises has helped China to manage the global slowdown in an effective way. It is, thus, no surprise that, as the joint statement noted, China’s “overall economic situation in China is stable and has the foundations to sustain sound development as new progress has been made in structural adjustment, consumption has realized steady growth, prices have maintained stability and employment situation has remained sound.”
While India also gives a lot of emphasis on the development of SMEs and has many export promotion schemes, the intent is not backed by adequate financial resources.
“As a matter of fact, we have too many schemes with too little funds backing them to have any appreciable impact at the global scale. Secondly, many schemes are not targeted well because of lack of dialogue between export promotion agencies and SMEs," said Secretary General of the Federation of Indian Micro, Small and Medium Enterprises (FISME) Anil Bhardwaj.
India and China are seen as competitors in the world market but there are several areas where they can help each other. While the Indian manufacturing sector can gain by cooperating with China the latter would benefit by collaborating with India in the field of information technology. Even within the IT field, India hold supremacy in software while China has a big edge in hardware.
Later in October, Prime Minister Manmohan Singh is visiting China. (KNN/PC)
New Delhi, Sept 27 (KNN) China which has come to occupy the status of 'Factory of the world' gives a great focus to its small and micro enterprises helping the world's second largest economy to maintain stability in prices and employment situation. The point was highlighted in the China - India Financial Dialogue held at Beijing yesterday.
“(China’s) fiscal policy has focused on adjusting the expenditure structure, reducing administrative spending, supporting structural adjustment and improvement of people’s well-being, and providing tax incentives to small and micro enterprises…” said the joint statement after the sixth meeting within the framework of the China-India Financial Dialogue launched in 2005.
Analysts feel that giving a boost to the small and micro enterprises has helped China to manage the global slowdown in an effective way. It is, thus, no surprise that, as the joint statement noted, China’s “overall economic situation in China is stable and has the foundations to sustain sound development as new progress has been made in structural adjustment, consumption has realized steady growth, prices have maintained stability and employment situation has remained sound.”
While India also gives a lot of emphasis on the development of SMEs and has many export promotion schemes, the intent is not backed by adequate financial resources.
“As a matter of fact, we have too many schemes with too little funds backing them to have any appreciable impact at the global scale. Secondly, many schemes are not targeted well because of lack of dialogue between export promotion agencies and SMEs," said Secretary General of the Federation of Indian Micro, Small and Medium Enterprises (FISME) Anil Bhardwaj.
India and China are seen as competitors in the world market but there are several areas where they can help each other. While the Indian manufacturing sector can gain by cooperating with China the latter would benefit by collaborating with India in the field of information technology. Even within the IT field, India hold supremacy in software while China has a big edge in hardware.
Later in October, Prime Minister Manmohan Singh is visiting China. (KNN/PC)
Loading...
