New Delhi: As India strives to become a more competitive player in the global market, Union Minister Nitin Gadkari has issued a clarion call to industries: refrain from perennially demanding tax cuts. This appeal is rooted in the government’s need for funds to support welfare schemes for the underprivileged. Gadkari also emphasized the critical role of reducing logistics costs, currently at 14-16%, to enhance India’s international standing. Furthermore, he highlighted the industry’s pivotal role in job creation and economic growth, urging them to seize the opportunities of this “golden era.”
In a recent address, Gadkari underscored the importance of balancing tax demands with the government’s welfare obligations. He noted that while industries may seek tax reductions, the government cannot function effectively without revenue. The vision is clear: to tax the affluent and provide benefits to the less fortunate. This approach underscores the government’s commitment to a welfare state, where taxation plays a vital role in funding social programs.
Gadkari announced plans to slash logistics costs to 9% within two years, a move that would significantly boost India’s competitiveness. For comparison, logistics costs stand at 8% in China and 12% in the US and Europe. He also stressed the need for industries to reduce production costs without compromising quality, emphasizing that this strategy will strengthen India’s position in global trade.
Increasing capital investment is another key strategy, as it is expected to generate more employment opportunities and drive economic growth. Gadkari emphasized that industries are not only wealth creators but also job creators, urging them to capitalize on the current economic climate. Additionally, he highlighted the importance of reducing imports and increasing exports to propel India toward becoming a developed nation.
