Panch Tattva Wisdom

If India wants manufacturing, jobs, and exports, capital investment must be rewarded — not delayed.
The Government of India should allow companies complete flexibility to write off expenditure on machinery and equipment, including the option to expense 100% of the cost in the first year itself.
Why this matters
• Immediate write-offs push profitable companies to reinvest surplus cash into factories instead of financial assets
• Faster capacity creation leads to higher productivity and large-scale employment
• Lower effective cost of capital makes Indian manufacturing globally competitive
• Short-term tax sacrifice is outweighed by a broader tax base and higher long-term growth
Several global economies already use accelerated or full expensing to attract manufacturing capital. If India wants to compete seriously in global supply chains, tax policy must encourage speed, scale, and modernisation.
This is not a giveaway — it is a strategic investment in India’s industrial future.
#Manufacturing #CapitalExpenditure #TaxReforms #MakeInIndia #Exports #Employment #EconomicPolicy