India on road to be engine of global trade, says report; these 2 factors boosted its trade potential
The business reforms over the last few years along with large population and robust growth make India the upcoming future giant in the global trade, a report said. The potential for the individual markets to increase their trade growth is particularly high in Asia with nine of the Trade20 economies located in this region, Standard Chartered said in a report. The markets in the Asia-Pacific including India, China, Sri Lanka and ASEAN dominate the group. The reports adds that the decisions taken in recent years have improved India’s trade readiness potential along with the ease of doing business. These have brought India nearer to the global best practices and boosted its trade growth potential.
“These reforms have made it easier to start a business, obtain construction permits, raise finance, pay taxes and import and export goods. India has also made rapid improvements in its digital infrastructure, spearheading mobile payment innovations, witnessing rapid e-commerce growth and using technology to revamp the taxation system,” it added.
“Policy improvements and the government’s focus on promoting the country as a manufacturing hub are clearly paying off. We expect to see higher investments flowing into India, which will ultimately result in increased domestic and cross-border trade,” Ricky Kaura, Head of Transaction Banking, East, Standard Chartered said.
Meanwhile, India’s economic growth has fallen to a six-year low of 5 per cent in the June quarter of fiscal year 2020. The government has announced a slew of economic measures in the past few weeks to boost the economy. Finance Minister Nirmala Sitharaman on Friday announced a cut in corporate income tax rate with an aim to revive the slowing economy and attract investment. The revenue foregone for the reduction in corporate tax rate and other relief measures announced will cost the government Rs 1.45 lakh crore per year.