Exports may reach $290 billion by end of fiscal year, says trade body


The country’s may reach USD 290 billion by the end of this fiscal as the outbound shipments were hit hard by the COVID-19 pandemic during the first half of the year, said on Wednesday.


Federation of Organisations (FIEO) President Sharad Kumar Saraf also said that 2021 would bring a ray of hope and optimism for the exporting community.



“We are confident that a V- shaped recovery will be witnessed in world trade and we will recover much more from what we lost in 2020. Since the first and second quarter have been pretty bad, we may end the financial year 2020-21 with of around USD 290 billion,” he said in a statement.


However, looking into the good order booking position for food including processed food, pharma, medical and diagnostic products, technical textiles, chemical, plastics, electronics and networking products, “we should endeavor to take exports to USD 350 billion in 2021-22,” he added.


He suggested that the government should focus on sectors where major imports are happening and boost traditional sectors, which are important for exports as well as employment.


During

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PE/VC investments into India from China, Hong Kong fall 72% in CY20

Private equity/venture capital (PE/VC) investments into India from China and Hong Kong have seen a substantial drop in 2020.


Investments from these two regions combined have declined 72 per cent to $952 million this calendar year, from $3.4 billion in 2019, the data from Venture Intelligence shows. Investments from Mainland China have reduced 64 per cent to $377 million, while those from Hong Kong have fallen 75 per cent to $575 million in 2020. Also, over 150 applications concerning investments from Chinese entities have been pending since the introduction of press note 3 (PN3) for in April, according to law firm Khaitan & Co.



The new PN3 norms and lack of clarity on what constitutes beneficial ownership are the primary reasons for the decline in investments from China and Hong Kong, experts believe. PN3 has especially dealt a major blow to start-ups by depriving them of funds from cash-rich China/Hong Kong-based investors.


The PN3 guidelines state that an entity of a country that shares a land border with India can invest only under the government route. The guidelines also included the beneficial owner (BO) of an investment into India who is located

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How Research & Development (R&D) tax relief works for startups

Startup companies especially those in the technology and sciences niche often have brilliant business proposals in mind.

However, most of them lack enough financial support. Fortunately, there are plenty of ways you can finance a startup business. One of which is through a research and development tax credit.

A long time ago, only large and well-established companies who contribute significant knowledge to their industry can file and claim research and development tax credit. Nowadays. even small and medium-sized companies can claim this type of tax credit.

It’s provided to companies who develop or improve products, software and/or processes in a certain group of industries. The government only supports startups including physics, chemistry, biology, computer science and engineering. It’s a government-provided incentive that can be used to reduce the R&D cost.

How does it work?

With the help of this tax credit, you can get back 30% of your R&D costs as cash. Alternatively, you can use it to decrease your tax bill.

While this type of credit was introduced sometime in 2000, many startup companies in the UK don’t know how to use it. You can use this credit as an alternative to innovation grants. Also, you use it to

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