Abolition of retrospective taxation increased trust between government and industry: Rajnath Singh

According to the Defense Minister, there is a lot of scope for joint-production and joint-development of military equipment between American and Indian defense firms.

Defense Minister Rajnath Singh said on Wednesday that the trust between the government and the industry has increased after the retrospective taxation regime was scrapped. Addressing the India-US Economic Summit organized by a leading industry body via video conference, Rajnath Singh referred to several decisions taken by the government to boost economic growth and said that global investors are now “in India”. ‘Red Carpet’ is being welcomed instead of ‘Red Tape’.

“We have formulated progressive and investor-friendly tax policies. We have done away with taxation with retrospective effect. By doing this, we have corrected the mistake of the previous government (UPA).” He said the government was preparing for “dynamic growth” throughout this decade and shared-production and military equipment between American and Indian defense firms. There is a lot of scope for shared development.

The Defense Minister said, “Coronavirus pandemic has presented new challenges in terms of disruption in supply chains, the slowdown in industrial activities, negative growth in travel and tourism industry and there is no doubt that there is a need to restore normalcy and further India-US cooperation will play an important role in the journey of the US.

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