India to Follow Global Trend of Lowered Taxes on Aluminium: Vedanta’s Agarwal

India to Follow Global Trend of Lowered Taxes on Aluminium: Vedanta’s Agarwal

Vedanta Chairman Anil Agarwal expressed a hopeful attitude about the prospects of the domestic and global aluminium trade in an interview with domestic media published earlier this week.

When asked whether tax rebates and long-term gains would be realized after demonetization takes hold in the sector, Agarwal indicated that such positives had already come to fruition.

“Absolutely this has been done,” explained Agarwal. “I think the new era has come of doing business and a better way of doing business will happen. So that is already settling in and fundamentally the way SEBI [Securities and Exchange Board of India] has conducted it has created its own name in the world and time to come as prime minister said that in the area of start-up, in this area of agriculture more and more public issue and investment and new securities to come, bond market to establish so it was very encouraging.”

On the subject of the Indian government’s budget and whether it would contain any perks for the country’s aluminium industry, Agarwal said that the economic and business setting was likely to encourage the government to make such concessions.

“I believe so,” he said. “I can see the way the finance minister also very encouragingly talked about it. All the laws are in place and the budget has been advanced and we all are very hopeful that this budget will be very encouraging. If you see America the way the stock market has done, the business is moving their side– the developed country and India is going to follow and every large country is looking to reduce tax cut so I am sure India will follow that too.”

The Indian metal sector has largely missed the negative impacts of monetization, Agarwal opined, and was not expected to share in the fates of the health care and pharmacy sectors, where growth rates have fallen.

“I think as far this is commodity market, it is international driven so prices has been strengthened in the last few months whether it is oil, copper, zinc, iron ore but definitely in India we find the import of scrap being slowdown, maybe there was a lot of cash dealing with that so that is a good news for the prime producer and to healthy business,” he said. “I am very hopeful on the metal, India must be the largest, highest growing country because we are on baseline, from China we consume, same population and we consume only 10%. So a lot of growth going to take place, lot of SMEs to going to come in, in aluminium, in copper because the demand is going to grow, the construction is going to grow and I am very hopeful.”