Tax sops to lure FDI in manufacturing mooted

The Committee, which had its third meeting here today, also gave various suggestions for avoidance of taxation on dividend of Indian companies on investment in global markets, besides reduction in time for settlement of tax disputes.

“The members of CDTAC gave various suggestions... (giving) more tax benefits for manufacturing sector for attracting more FDIs, reduction in time for giving its advance ruling in reduced time frame by the Authority for Advance Ruling,” a finance ministry statement said.

Growth in the manufacturing sector dipped to 7.2 per cent in the April-June quarter from 10.6 per cent in the corresponding period of 2010-11.

Also, the overall economic growth in the first quarter this fiscal was at the 18-month low of 7.7 per cent, against 8.8 per cent in the corresponding period last fiscal.

The government is aiming to increasing manufacturing sector’s share in GDP to 25 per cent by 2025, from 16 per cent at present, and and create create 100 million jobs.