Foxconn, Nokia catches Tamil Nadu government’s eyes for investments

Tamil Nadu government has now turned its attention to electronics giants like Nokia Solutions and Networks, Foxconn, Salcomp and Dell International Services for investments.

The closed-door meet, global Investors Meet 2015, held on Wednesday had the state IT department officials appraising the industry about opportunities in the IT and electronics segments in the state, according to industry executives.

The companies, in turn, discussed what will be compelling reasons for investment in supply chain, taxation and labour. They pitched for extension of duty relaxations to electronic devices besides mobile handsets. Predictable tax policies, supportive labour environment, and a state leadership agile to the dynamic business environment in the electronics industry were among the requisites for investment, they hinted.

Specifically, companies wanted to know about the future of value-added tax refunds when the proposed Goods and Services Tax system kicks in. Secondly, VAT for some electronic items was on the higher side, dimming the prospects of state participation in ecommerce businesses. They also pointed out higher corporate and dividend distribution taxes compared to competitors such as Vietnam.

A top state government official told TNN, "In our representations to the Centre, we have always stressed that the GST regime should not wipe out tax incentives to the industry. As for specific industry grievances, we have made sure our weight was behind them if their causes were justified."

(Image credits: Indiatimes)