India, the world's second most populous economy, has announced its biggest tax reform in eight years. Prime Minister Narendra Modi has announced lower GST rates, which are intended to boost consumption and open the country up even further to foreign investors.
What is changing?
- The highest 28% rate on electronics and cars will be abolished.
- Everyday products (food, household goods) will fall from 12% to 5%.
- The state budget will lose as much as USD 20 billion a year, but the economy could gain an additional 0.6 percentage points of GDP.
- The government continues to support local industry and the "Vocal for Local" strategy, but at the same time is focusing on developing global trade links.
Why is this an opportunity for you?
The tax change means that trade and manufacturing in India are becoming even more competitive. This is an excellent time to:
- move part of your production to India,
- expand exports of goods and services,
- work with Indian partners in the IT, medtech, electronics or agriculture sectors,
- set up business structures that provide a tax and cost advantage.
India is already becoming an alternative to China as the "world's factory" - a trend worth taking advantage of.
How can GlobalTax.Partners help you?
- We will advise on how to plan your entry into the Indian market, taking international tax structures into account.
- We will develop an operating model for your company in India, so as to minimise tax burdens.
- We will analyse contracts and commercial agreements and protect you against tax and customs risk.
- We will align your strategy in India with your tax security in Poland, the UK or the UAE.
Take advantage of the opportunity now
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