Globalization is the process of growing and evolving the business practices using advanced technologies to decipher the same across the global markets throughout the world. The Government has paved the way for entrepreneurial development of the country in order to elevate India’s status on the international scale of trading. Contributions made in the form of incentivizing business policies have facilitated the World Bank’s Ease of Doing Business global rankings for the country. Aiming at increasing the domestic production levels benefiting the Indian economy, offering employment opportunities to the working cadre and liberalization of the investment policies, the Government has been devising schemes for benefiting the corporates to house their businesses in the country.
India- the exporter
While the Government has made enormous efforts to promote commercial activities in the nation, focus has been to encourage trade overseas. Being a significant producer of various products, India exports a number of goods such as jute, tea, cotton, spices, engineering goods, refined petroleum, gems, jewellery, chemicals, agricultural products, textiles, etc.
With a view to improve and boost the exports performance of India, the Government introduced the Foreign Trade Policy (2015-2020). It also aims to help diversification of India’s export by aiding various sectors of the economy to gain global competitiveness with a view to foster exports.
Information Technology of India
The technological advancements touch all the core aspects of the modern life including communication, governance, business management, banking, advertising, entertainment, insurance, and education, medical, engineering, commercial and industrial fields. Keeping pace with the fast-moving world, India has been able to carve out its identity on the global platform in terms on information technology.
The Indian information technology sector has earned a repute in the global market favouring it to generate a handsome revenue to this account. Attributable to liberalized policies and reduced procedural hurdles a number of foreign entities are now preferring to establish their base in India.
The Government has extended the duration of exemption of integrated goods and services tax (hereinafter referred to as “IGST”) for export-oriented units (hereinafter referred to as “EOUs”) and software technology parks on imported goods till March 31, 2019 vide its notification dated September 26, 2018.
In its approach to support the information technology sector of the company generating high profits benefiting the country’s economy, the Government is working on an e-wallet scheme to issue expeditious refunds to exporters.
The approach of the Government to extend the exemption deadline and introduction of e-wallet scheme in respect of EOUs and software technology parks is expected to reduce the burden on the information technology sector providing them a time to acclimatize with the taxation regime which was not present earlier.