“Mother of all deals”

A view has emerged that the Trade Agreement between India and the European Union could reshape global commerce, boost exports and counter rising protectionism worldwide. Further, the deal would help Europe achieve its objective of shrinking its reliance on China and diversifying its global supply chains. Europe will have the opportunity to access the big market in India.

 Everyone in India and Europe seems in a celebratory mood. But, not President Trump. At least, so, it seems. He feels:”the deal amounts to European Union funding war against itself”.

Against this background, let us not forget, the deal  is as much about geopolitics as it's about inter-continental business relations. It may face challenges  in the fast-evolving geopolitical landscape and the unpredictability of the US administration that is using  tariffs as a bargaining chip under the looming shadow of President Trump.

PM Modi feels "it is not just a trade agreement but a new blueprint for shared prosperity". President of the European Commission Ursula  called  the agreement  as "the mother of all deals". Both see it as a win-win situation.

Let us wait and watch and  hope the deal, which is still subject to ratification, assumes greater geopolitical significance ,as we go along. Let the ‘mother of all deals” turn into a game changer.

A K Saxena (Former civil servant)

Economic Survey

Economic survey confirmed the fears that reduction in corporate tax rates did not result in extra capital investment.the step increase profits and resulted in increasing income inequality.Therefore,the said corporate tax reduction should be withdrawn and matching relief should be given in individual tax rates so as to increase theis disposable income. As far as direct taxation is concerned,scruiny system should be scrapped altogether[as was done in Vajpeye government].Instead,NUGET approach be given wider adoption. Searches and subsequent assessments yield omly meagre extra revenue because post search assessments result in huge demand giving charge of tax terrorism and ultimately these demand gets knocked off in arduous and time consuming appeal proceedings.Instead,assese should be goaded into NUGET approach ,for this no penalty should be levied.

Rajesh Gohel