Sops to make India rival China

Dec. 9: India can surpass China as a global production hub for consumer durables with rationalisation of tax structure and policy support from the government, says a study by the industry body, Ficci, and financial consultancy company PricewaterhouseCoopers (PwC).
The study suggested tax rebates for high-end technology companies that set up research and development centres in India.
To rationalise tax policy, it asked for reducing the overall tax levels and simplification of the tax structure. To avoid the cascading effect of taxes, the government should speed up the introduction of Goods and Services Tax.
“The Indian market ... is still under-penetrated with a huge untapped potential ... there exists an opportunity for India to develop itself as a manufacturing hub for consumer durables ... we need to focus on policy initiatives,” PwC executive director (financial advisory services) said. During the last decade, China has been successful in developing large home-grown companies and has grown into a large manufacturing hub for consumer durables, NMCC chairman, Mr V. Krishnamurthy, said. Ficci secretary general, Mr Amit Mitra, said that India still continues to import these items from the world.
The National Manufacturing Competitiveness Council (NMCC) has entrusted PwC and FICCI to conduct the study.