Noting that the bill to nullify retrospective taxation shows the commitment of the government and consistency in policies, Prime Minister Narendra Modi on Friday said that new possibilities for expanding India's exports are increasing in a world that is witnessing increased physical, technological and financial connectivity.
Interacting with Heads of Indian Missions abroad along with stakeholders of the trade and commerce sector of the country, the Prime Minister said that there is a lot of potential to boost exports from the country.
"At present, our exports are about 20 per cent of GDP. Considering the size of our economy, our potential, the base of our manufacturing and service industry, it has potential to grow a lot," he said.
"Due to physical, technological and financial connectivity, the world is becoming a smaller place. In this, new possibilities are being created around the world for expansion of our exports," he added.
The Prime Minister referred to the Taxation Laws (Amendment) Bill, 2021 passed by Lok Sabha on Friday which proposes to amend the Income Tax Act, 1961 to provide that no tax demand shall be raised in the future on the basis of the retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012.
"Our exporters doing business with different countries of the world very well know the impact of stability (in policies). The decision of the government to do away with retrospective tax shows our commitment, consistency of policies," he said.
He referred to factors important for increasing exports.
"First, manufacturing should increase manifold in the country. Second, the problems related to transport, logistics should be removed. Third, the government should walk shoulder to shoulder with the exporters. And the fourth factor, which is related to today's event, is the international market for Indian products," he said.
The interaction witnessed the participation of secretaries of more than twenty departments, state government officials, members of Export Promotion Councils and Chambers of Commerce.
( With inputs from ANI )
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