Washington, DC [US], July 24 : The US-India Strategic Partnership Forum (USISPF) commended Union Budget 2024, and said that the inaugural budget of Modi 3.0 supports both consumers at home and foreign investors with steps to enhance the ease of doing business in India.
The USISPF congratulated Finance Minister Nirmala Sitharaman and the Indian government on presenting a commendable Union Budget for 2024-25.
"The inaugural budget of Modi 3.0 strikes a fine balance between inclusive fiscal prudence, and growth-oriented initiatives, and supports both consumers at home and foreign investors with steps to enhance the ease of doing business in India," the USISPF said in a statement.
The Budget's salient features touched on reducing tax and tariff burdens on individuals and industries, a hallmark of Prime Minister Modi's fiscal priorities.
USISPF further lauded the decision to reduce tax rates for foreign companies to 35 per cent.
"This action creates parity between domestic and foreign players and will be an important boost for global investors seeking to shift their international supply chains away from China," it stated.
At the same time, the duty cuts on critical imports such as medical equipment, mobile phones and chargers, and solar energy machinery will enhance local manufacturing capabilities and enhance supply chain efficiencies, which are crucial for India's industrial growth, they added.
"India has long been a country of engineering and tech talent, yet there have been gaps in the innovation ecosystem. The abolition of the angel tax across all investor classes marks a landmark reform benefiting India's startup ecosystem," the USISPF said in their statement.
This important reform will stimulate increased startup funding from both domestic and international sources.
Moreover, the budget caters to healthcare priorities in duty exemptions on vital cancer drugs, reiterating the government's commitment to accessible healthcare and improving affordability for life-saving treatments.
"USISPF welcomes key measures to increase financial sector efficiency and transparency, including the establishment of a financial sector vision and strategy, taxonomy for ESG financing, and simplification of FDI regulations," it stated.
These initiatives are crucial for attracting foreign investment and promoting economic growth. USISPF also appreciates the government's intent to strengthen the debt recovery infrastructure.
Further, in a move to strengthen the renewable energy sector, the USISPF welcomed the emphasis on critical mineral missions, energy transition policies, and digitalization. These efforts will drive investments in mining, green technologies, and innovation.
They also welcomed the new employment-linked initiative with its focus on creating jobs in the manufacturing sector, including for three million youth.
"With regards to digital taxation, the removal of the equalisation levy and ongoing reforms aimed at fair taxation practices for non-resident digital companies reflect India's proactive adaptation to the digital economy," it stated.
Moreover, the budget introduced significant reforms in transfer pricing regulations, including streamlined assessment procedures and an expanded scope of safe harbours, which will enhance transparency and fairness in cross-border transactions.
These reforms not only promote compliance but also reduce tax disputes, fostering a favourable environment for business operations in India, the USISPF said in its statement.
USISPF further expressed confidence that the budget will further propel India's economic growth and solidify India's position as a global economic powerhouse.
"The USISPF is confident that the budget will further propel India's economic growth and act as a catalyst for accelerated economic progress, boosting investments, job creation, and innovation, and further solidifying India's position as a global economic powerhouse," it said.
USISPF emphasised that it looks forward to the positive impact of these budgetary measures on the Indian economy and strengthening the economic and commercial partnership between the US and India.
"We remain committed to supporting the government's vision of a prosperous and inclusive India," it added.
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