India has to work on the levers around capital absorption and capital flow incentivisation: Gokul Chaudhri
Gokul Chaudhri, Tax Leader,Deloitte India, says “the energy transition is going to be involving, let us say, the rollout of green bonds and green financing and so forth. And that will also bring in its own tax levers, because there will have to be an incentivisation around the entire green space as to how to enable the energy transitions to happen, including the PLI for a number of products that go into the green economy, plus also the incentivise around the green bonds. So there are a fair number of levers that India today has to enable that capital absorption as well as capital flow incentivisation.”
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Deloitte has come out with a very interesting report around tax reforms and we have seen some, perhaps there is room for more but the larger point to start the discussion on how can this be used as a tool to attract capital flows because that is exactly at this juncture in our country in need of the hour and also the current establishment is looking towards that.
Gokul Chaudhri: You are right. We are at a very interesting and pivotal point in the economic history of our country. The amount of momentum that we are seeing today where everyone, including those outside of our country, have acknowledged that we are the shining spot in the global economy. We are not just one of the largest economies which is growing, at the pace it is growing, but there is a lot of expectation that the growth momentum will continue. And that growth momentum is going to be driven by not only propelling the domestic savings and investment, but also by being able to be attractive to get foreign inflow of capital into India. And if you look at it, there are a number of initiatives
