By By Samiksha Agarwal and Lekha Chakraborty
The authors are Research Scholar and Associate Professor, National Institute of Public Finance and Policy, New Delhi, respectively. firstname.lastname@example.org
India has the onerous distinction of having the highest taxation and royalty rates for the mining sector. This mars the overall competitive edge of mining firms.
The recent global macroeconomic uncertainties including plummeting commodity price cycles, currency devaluation in Brazil, the cost reduction strategies of the firm, the falling economic growth in China, the lowering capital expenditure (CAPEX) investment on infrastructure projects have had tremendous impact on the firm level competitiveness and the underlying earnings before interest, depreciation, taxes and amortization (EBIDTA) of mining firms, inevitably affecting mining in India as well. The turmoil in the European Union and the Quantitative Easing in USA can also...