UK India Business Council Welcomes India’s Union Budget 2024-25 Emphasis on Facilitating Foreign Investments and Commitment towards Fiscal Stability
By Trisha Nagpal
and Richard McCallum
UK India Business Council Welcomes India’s Union Budget 2024-25 Emphasis on Facilitating Foreign Investments and Commitment towards Fiscal Stability
New Delhi, July 23, 2024: The UK India Business Council congratulates Hon’ble Finance Minister Smt. Nirmala Sitharaman and the Government of India on the presentation of India’s Union Budget 2024-25.
UKIBC welcomes the government’s proposal to reduce the corporate tax rate on foreign companies from 40 to 35% and looks forward to continued progress towards parity. We are also encouraged to note the announcement on foreign direct investment (FDI) and look forward to the details once finalised and published.
The Indian government has laid down an ambitious plan for Viksit Bharat (Developed India) by 2047. UKIBC and our members strongly support this agenda and can play a strong role across key priority areas such employment and skilling, energy transition, manufacturing, and R&D, among others.
These are areas in which many UK companies are already invested and actively engaged in India, often working with brilliant Indian partners.
A continued focus on policy and ease of doing business related reform will help unlock increased private investment, including from the UK.
The UK is investing to support innovative sustainability technology and British banks provide billions in climate financing to India. Our university members are collaborating with Indian industry and academic institutions to help develop talent for India and the world and to co-create new technologies to address global development challenges in healthcare, climate change and food security.
We also commend the Indian government’s strong economic growth promotion whilst at the same time delivering fiscal stability and inflation management. The five-year vision document announced to assess the financial needs of the economy will undoubtedly support India’s trajectory to become the third largest economy in the world.
Richard McCallum, Group Chief Executive Officer, UK India Business Council: “UKIBC welcomes the announcement on corporate tax reduction for foreign firms, which provides great encouragement to foreign investors. Continued progress towards a level playing field for all investors will help unlock higher levels of international investment in India.
We also note the intention to simplify FDI norms. We look forward to more details on this and recommend facilitative provisions that maximise the full extent of the sectoral cap liberalisation. For instance, in sectors like defence and insurance, among others.
The overall emphasis on economic stability and growth combined with strong fiscal management provides continued certainty for global investors. India is the most exciting economic story in the world today. We see India not simply as a market but as a strategic partner – part of our R&D chain, technology chain, talent chain and supply chain.”
About the UKIBC
UKIBC is a policy advocacy and advisory not-for-profit, with a mission to grow the UK-India trade and investment. To do that, we provide strategic and practical support to businesses and universities to explore, enter, and expand in both markets.
We want to help more UK businesses to uncover opportunities and succeed in India.
Business looking at the India opportunity need to develop a strategy based on factual market insights, and then implement that strategy. The UK India Business Council has the knowledge, networks, and people to help do this.
UK-India collaboration creates prosperity and jobs in both countries, and UK and Indian business have ideas, technology, services, and products which improve lives. We work closely with the UK and Indian governments, the devolved administrations, England’s city regions, and State governments across India. We believe a strong UK-India economic partnership is a force for positive change globally.
For more information, please contact:
Nishtha Grover
Senior Manager – Communications, UK India Business Council
Mobile – +91 9818021223
Email- Nishtha.grover@ukibc.com
