Good evening !!
Subsequent to enduring a perpetual fiscal & statutory oblivion as well as procrastination, eventually, accoutred in a fiscal-statutory attire, the absolute foreign direct investment route, via equity stake in subsidiary corporations or as upfront investment route , in, lets be oblique, ‘THE VULNERABLE’ sector’s supply-chain infrastructure, has been acceded to, today !!
The vulnerable, though crucial to economy, sector has been incurring fiscal reform oblivion perpetually !! Apparently the hitherto endured oblivion would be ‘sunk cost’ in contemporary terminology 🙂
Though, acceding to the pivotal significance of the sector, in context of perishing, supply chain infrastructure & industry panel recommendations, the said investment route has been statutorily effectuated, however, it ought have been incorporated in the fiscal system long back.
Optimism pervades – in context of its ameliorating and conducive repercussions – towards THE VULNERABLE SECTOR, as well as investment inflows.
However, optimism being usurped & eclipsed by caveats !!
Of late, multiple federal statutes have been incorporating plethora of impediments to the supply chain sector – exacerbating the already ambiguous legal scenario regarding the sector !
These manufactured impediments – reflected via manifestation in plethora of additional fiscal levies – invoking federal powers under Constitution of India’s ‘State List’ based statutes – consequently amounting to a travesty of principle of uniform union/federal levy, – & consequently – travesty of the perpetual consent building endeavors – in context of the gigantic rebellious fiscal reform gst !
As a corollary to aforesaid, the obvious solitary discernible would be – a grave skepticism regarding direct route investments incoming to our shores !!
Any jurisdiction’s fiscal legal ambiguity, dearth of proactive vigilance towards seemingly irreconcilable federal union statutory frameworks – is bound to culminate towards dwindling direct investment , forex flows !!
Good day !