Hailing the recent tax cut by the Centre to revive domestic economy as “bold and historic,” chief minister Yogi Adityanath on Sunday claimed Uttar Pradesh would emerge as the biggest beneficiary of these announcements, especially in the face of intense US-China trade war.
Addressing media at the Indian Institute of Management, Lucknow (IIM-L) premises, Adityanath claimed UP was already an attractive destination for private investments and the recent measures would provide further traction to the state.
“We have adequate land bank and connectivity, apart from new policies in all 21 key sectors, which coupled with the various tax sops announced by the Centre would position UP as the most favoured investment destination in India,” he added.
The CM said the steps taken by the Centre in backdrop of global economic slowdown had instilled confidence in India Inc, which would translate in fresh investments and revival of economy juxtaposed to the target of India touching the $5 trillion mark by 2024.
“Earlier, Indian companies faced the challenge of higher taxes in competing with Chinese, Thai and Taiwanese firms. However, now the Narendra Modi government has pared the domestic tax rates to the level that they are among the lowest in Asia now. This would accelerate our exports and fortify the global competitiveness of companies,” Adityanath noted.
He said India and UP both were well poised to benefit from the ongoing US-China trade war even as he highlighted automobile, engineering goods and capital intensive industries having the highest potential for growth.
Replying to a Business Standard query, the CM said although the existing state policies were comprehensive, yet if need be, the government would revisit them in the aftermath of recent tax cut.
“The companies who are currently heavily invested in China are looking at other countries to relocate in wake of the intense US-China trade war. Besides, the wages in China are going up, which has further impaired its cost competitiveness. This is the perfect opportunity for the Indian companies to benefit from the dual advantages of the trade war and recent tax incentives,” he noted.
Adityanath claimed the tax cut proposals would not adversely impact UP’s revenue estimates and in fact boost collection following the projected expansion of economy going forward.
The CM said the micro, small and medium enterprises (MSME) sector would greatly benefit from the tax cut. He further informed his government had urged commercial banks to increase credit deposit ratio (CDR) in UP although the matrix had improved significantly over the two and half years of his regime.
Meanwhile, he said the government was brainstorming with IIM over the ambitious target of UP becoming a $1 trillion by 2024. IIM-L is holding a 3-part mentoring session for the Adityanath council of ministers and senior bureaucrats in management and governance.