Page 22 - CII-ARTHA

ARTHA

Cultivating Predictability and Mitigating Tariff Barriers for
stable regulatory environments GVC integration and FDI flows

• Ensure long-term stability by avoiding sudden • Adopt a rationalized three-tier tariff structure:
export/import bans and proactively managing the Raw Materials (0-2.5%), Intermediates
rollout of Quality Control Orders (QCOs). (2.5-5%), and Finished Goods (5-7.5%).

• Establish formal mechanisms to consult industry • Align average tariffs with international peers
stakeholders before introducing regulatory changes like Indonesia and Malaysia.
to minimize business disruptions.

• Extend the PLI scheme to more sectors with liberal
criteria and adopt a balanced, gradual approach to
local content requirements. Bolstering Innovation and
Intellectual Property Rights
(IPR)

• Develop design and R&D capabilities in India by
Essential Segments for Growth learning from global practices and/or
and World-Class Infrastructure collaborating with foreign firms, e.g., Joint
Design studios in Textiles and Garments sector.

• Prioritize large-scale projects like roads and ports • Offer reimbursement up to a specified limit for
through private-government collaboration with fair patent filing costs incurred by state-located
risk-benefit sharing terms. units.

• Reduce logistics costs by addressing marine • Extend existing R&D tax incentives (e.g.,
strength and container availability while expediting Section 35(2AB)) to encompass capacity
the monetization of infrastructure allocations. building and investments in intangible asset
development.
• Shift the labour force toward value-added
contributions; encourage foreign universities and
research institutes to invest in India.

Cultivating a Competitive and
Stable Taxation Framework

Addressing Non-Tariff Barriers • Fast-track Advance Pricing Agreements
(NTBs)
(APA) and provide publicly consultable
guidelines for profit attribution to Permanent
• Align Indian standards with international bodies like Establishments (PE).
International Organization for Standardization (ISO)
and International Electrotechnical Commission • Allow Indian branches of foreign companies to
(IEC), and negotiate Mutual Recognition pay a concessional tax rate of 25.17 per cent
Agreements (MRAs) to facilitate smoother and introduce presumptive taxation models for
certification acceptance. GCCs and offshore projects.

• Achieve international accreditation for BIS • Move toward a simplified three-tier GST rate
Certification to eliminate the need for manufacturers structure and clarify "intermediary" services to
to incur costs for third-party certifications abroad. exclude specialized financial and investment
banking work.

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