India Development News & Foreign Investment Opportunities

Czech companies urged to scale up investments

Skoda investment highlighted at Brno Fair

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Skoda investment highlighted at Brno Fair

 

 

Czech companies, including Skoda Transporation, have been urged to scale up their investments in India, leveraging the country as their global supply chain hub.

The call was made by Department of Heavy Industry Secretary Dr. Asha Ram Sihag who pointed out that India figures prominently on the investment radar of the top Czech companies.

He said that Volkswagen Group is investing one billion Euros in the implementation of its project in India for developing new models, including a mid-size SUV to be showcased in 2020.

Importantly, the technical development of new products will take place in India, said Dr Sihag at the ‘India Investment Meet” at the International Engineering Fair (MSV) at Brno, in Czech Republic, on 8 October 2019.

Department of Heavy Industry in association with India’s Embassy in Czech Republic and the Engineering Export Promotion Council of India (EEPC) organised India Pavilion showcasing India’s capability to the global businesses at the prestigious fair held 7-11 October 2019.

The Skoda group transportation has also developed hybrid vehicles and electric buses with the announcement of e-vehicles policy of Department of Heavy Industry. It holds specific interest for India in technology transfer and product development in the e-vehicle market, Dr. Sihag said, underscoring how the country is focusing on green fuel-driven automobile.

In his presentation at the India Investment Meet, Secretary said that India has set a target of raising the size of the capital goods sector from Rs.2.30 lakh crores in 2014-15 to Rs.7.5 lakh crore in 2025, raising direct and indirect employment to 30 million from 8.4 million at present. Exports must also account for 40% of engineering goods production from 27% at present.

Addressing the gathering, India’s Ambassador to Czech Republic, Narinder Chauhan said that India is seeking foreign investment particularly in the high-tech areas and further strengthening its manufacturing under the flagship ‘Make in India’ programme.

EEPC India Chairman, Ravi Sehgal said that with the Indian Government making the corporate tax rates competitive, foreign investors should invest in Indian manufacturing, especially when the two major economies of the world are locked in a trade war.

The Government has slashed corporate tax to 22% and even after surcharges and cesses, the effective rate is about 25%. For new investment for plants going into stream before March 2023, the effective corporate tax rate is a shade above 17%, which is very competitive for attractive investment into the ‘Make in India’ programmme.

The International Engineering Fair (MSV) is the leading and prestigious industrial trade fair in Central Europe. More than 1,600 exhibitors and 80,000 visitors participate in this fair each year. Over 50% of exhibitors and 10% of visitors come from abroad. fiinews.com

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