Latest News | DESH Bill Would Help Expand Manufacturing Base: Official
Get latest articles and stories on Latest News at LatestLY. The commerce ministry is working on a new law for special economic zones which would help expand the manufacturing base of the country, a senior government official said on Thursday.
New Delhi, Sep 22 (PTI) The commerce ministry is working on a new law for special economic zones which would help expand the manufacturing base of the country, a senior government official said on Thursday.
In the Union Budget this year, the government proposed to replace the existing law governing Special Economic Zones (SEZs) with a new legislation to enable states to become partners in 'Development of Enterprise and Service Hubs' (DESH).
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"DESH bill would probably expand the manufacturing base...will give much more flexibility than what is available. We are working on that part of it," Additional Secretary in the Department of Commerce, Amit Yadav said at a function here.
The existing SEZ Act was enacted in 2006 with an aim to create export hubs and boost manufacturing in the country. However, these zones started losing their sheen after imposition of minimum alternate tax and introduction of sunset clause for removal of tax incentives.
During April-June this fiscal, exports from these zones rose by 32 per cent to about Rs 2.9 lakh crore. It was about Rs 10 lakh crore in 2021-22 as compared to Rs 7.6 lakh crore in 2020-21.
Talking about the free trade agreement with Australia, Yadav said Australia has a treaty making process which goes through their parliament.
"Australian side has communicated in as many words that there are no challenges on getting it approved," he added.
The India-Australia Economic Cooperation and Trade Agreement (ECTA), signed in April, needs ratification by the Australian parliament before its implementation.
He added that the trade pact with UK too would need approval from the British parliament.
India and UK are negotiating the pact and are targeting to conclude it by Diwali next month.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)