MAKE IN INDIA

As world economies restart their engines in a bid to regain lost ground due to the Covid-19 pandemic, India too shows signs of economic buoyancy and promise. India’s Make in India initiative holds a key to the global economic revival, something that should interest Australian government ministries, corporate sector, entrepreneurs, institutions seeking R&D collaborations and Australia Inc in general, among others. India assumes greater importance as several major world economies including American, Japanese, German, British and South Korean look to move out and diversify their businesses from China. India has jumped to 63rd rank in the World Bank’s Ease of Development 2020 report, and has also been ranked as the 9th largest recipient of Foreign Direct Investment destinations in 2019 by the World Investment Report 2020 of the United Nations Conference on Trade and Development (UNCTAD).

UP will drive India’s growth: PM Modi

Lucknow, Feb 10 (IANS) Prime Minister Narendra Modi, while speaking at the launch of the three-day Global Investors Summit 2023 being held here, said that Uttar Pradesh would drive India's growth.

PM Modi said that developments were happening in the fields of electricity, connectivity and infrastructure in the state, only after the switch of power in 2017. Adding that the change took in just six years, he said that Uttar Pradesh had become a centre of hope for the entire country.

Modi said that there was a time when UP was referred to by the acronym 'Bimaru', but the state had established a new identity in recent years.

The Prime Minister added that the state is now recognised for its good governance and improved law and order condition.

PM Modi said that there has been a tremendous improvement in the state's infrastructure and it will be known as the only state in the country with five international airports.PM Modi at the beginning of his speech said that he was the chief guest at the event, but since he was an MP from the state he was welcoming them.

Top industrial houses including Reliance, Birla, Tata to invest in UP

Lucknow, Feb 10 (IANS) Top industrial houses, including Reliance, Birla and Tata, on Friday announced investment proposals for Uttar Pradesh on the first day of the three-day Global Investors Summit 2023 being held here.

Mukesh Ambani, Chairman of Reliance Industries Limited, announced an investment of Rs 75,000 crore in UP in the coming four years. About one lakh new jobs are expected to be created by this investment.

Speaking at the event, Ambani said that the state would become a trillion dollar economy within the next five years.

Reliance is expected to set up a 10 GW of renewable energy capacity in UP, which will be the biggest renewable energy project in the state so far.

The company also announced foray into bio-gas energy business in UP, on which Ambani said that bio-gas will not only improve the environment, but will also benefit the farmers and guarantee the farmers becoming energy providers along with being food providers.

Ambani said: "Uttar Pradesh has become the centre of hope for new India."

Aditya Birla Group Chairman Kumar Mangalam Birla, while speaking at the inaugural session, said that the group will invest Rs 25,000 crore in the state in the fields of cement, metals, finance services and renewable energy. among others.

Birla said that India is the fastest growing economy in the world, in which UP has made a crucial contribution.

He said that unprecedented development has taken place in the state under the leadership of Chief Minister Yogi Adityanath, including a network of highways, metros and airports being built in the state.

Birla lauded the state government's 'Nivesh Mitra' initiative and said that UP ranks second in 'ease of doing business'.

He said that that the state had issued a new policy for investment, under which $1.1 billion had come in the state as Foreign Direct Investment (FDI) in the last three years till September 2022, the highest in the last two decades.

Tata Sons Chairman N. Chandrasekaran thanked Adityanath for the improved law and order condition and strong infrastructure in the state.

He added that Tata group shared a long history with UP and has more than 50,000 employees in the state.

He said that the group has been undertaking massive expansion of its companies in the state due to the investment-friendly environment that has been created in the last few years. Chandrasekaran added: "We are investing heavily in Noida through TCS."

On this occasion, Daniel Bircher, CEO of Zurich Airport (Asia), the operational partner company of the under-construction Jewar (Noida) International Airport, and Sunil Vachani, Chairman of Dixon Technologies, also shared their experience and informed about future investment plans.

ICEA to help UP become a global IT and electronics manufacturing hub

New Delhi, Feb 10 (IANS) The India Cellular and Electronics Association (ICEA) on Friday signed a memorandum of understanding (MoU) with the UP government to facilitate investments as the electronics manufacturing and skill hub to cater to domestic demand and exports.

The government has set a target to achieve $300 billion of electronics manufacturing by 2025-26, out of which $75100 billion of electronics manufacturing is expected from Uttar Pradesh.

"Uttar Pradesh already has more than 60 per cent of total manufacturing units of mobile phones and components. We are confident that with strategic outreach and support, UP can witness accelerated investments and growth of electronics system design and manufacturing (ESDM) units," said Pankaj Mohindroo, Chairman, ICEA. "Uttar Pradesh has to grow secularly in all verticals and eclipse Shenzhen in China as the global electronics manufacturing hub, Mohindroo added.

The Uttar Pradesh Electronics Manufacturing Policy 2020 is targeting investments of Rs 40,000 crore and creating 4 lakh employment opportunities within the state by 2025.

"The state will need to gear up to become globally competitive in terms of infrastructure, ease of doing business, quality and cost of power, among other things.

The amended Uttar Pradesh Electronics Manufacturing Policy is a step in the right direction," Said Mohindroo.

UP is the largest exporter of consumer electronics in India with more than 196 ESDM companies and 55 per cent of India's total mobile component manufacturing units operating in the state.

This has resulted in approximately 60 per cent of the total mobiles manufactured in the country coming from the state. "The state is working towards becoming a powerhouse of IT and electronics. Our partnership with ICEA will further bolster our efforts," said Arvind Kumar, Additional Chief Secretary-IT and Electronics, state government.

Union Budget 2023: Empowers Startups with Extended Set Off and Carry Forward Period

The Union Budget 2023 has proposed a change that will have a significant impact on the Indian Startup ecosystem. The amendment to Section 79 of the Income Tax Act, 1961, proposes to extend the period for eligible startups to carry forward and set off losses incurred in the first 10 years of their incorporation. This change comes as a much-needed respite for startups who often face financial challenges in their initial years of operation. Previously, companies that experience a change in their shareholding were not eligible to carry forward and set off losses from previous years unless 51 per cent of the voting power remained with the same shareholders. However, for eligible startups, these losses could only be carried forward and set off for a period of 7 years. The proposed amendment extends this period by three years, providing startups with a longer runway to recover and utilize their losses.

The extension of the period to 10 years has numerous benefits for startups. Firstly, the extended period will allow startups to reduce their taxable income and reduce their tax liability, providing them with more capital to reinvest in their business and plan their finances more effectively. This, in turn, will lead to improved cash flow management and financial planning, giving startups the stability, they need to grow and succeed.

Furthermore, startups with reduced tax liability will become more financially stable, increasing their creditworthiness, and making them more likely to secure loans and investments. This stability will provide a cushion for startups during their critical initial years of operations, thereby encouraging entrepreneurship and innovation in India.

The amendment to Section 79 of the Income Tax Act, 1961, is a testament to the government's commitment to supporting the startup ecosystem in India. The extended period of 10 years will provide startups with the support they need to navigate the challenges they face in their initial years of operation and lay a solid foundation for future growth.

In conclusion, the proposed amendment to extend the period for carry forward and set off of losses for startups is a step in the right direction. It will provide startups with better cash flow management, improved financial planning, and a longer runway to grow their business. This amendment will further boost the startup ecosystem in India, encouraging entrepreneurship and innovation in the country and setting the stage for a brighter future.

SOURCE: Invest India