About: India Briefing
India is one of 112 countries to have ratified the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA), which took force on February 22 this year.
Intended to overcome the global slowdown in trade, the TFA introduces new best practices for member-states to ensure the easier movement of goods across international borders.
Nations who have ratified the agreement will be expected to implement changes to their customs infrastructure within two to three years. However, the basic set of provisions have to be implemented by the least-developed countries (LDC) within one year.
By Bradley Dunseith
Australia’s growth prospects in India are expanding.
Among key opportunities identified by the country’s entrepreneurs are: investing in India’s higher education and vocational sectors and India’s growing renewables market. India’s rapid growth has resulted in the need for complex, skill-oriented jobs on one hand, and accelerated its energy consumption and requirements, on the other.
When looking at the Indian education and training sector, Australian investors observe that India’s large labor supply does not automatically serve the country’s high employment targets. Rather, the availability of labor is now becoming a challenge for the government as industrial innovation and automation necessitates up-skilling and technical training.
Accordingly, this sector has captured the imagination of startups and foreign investors – incentivized by the Modi government’s support for private sector participation.
In the case of India’s energy markets, Australia’s trade and business relationship with India previously centered on the former being a major supplier of coal to India. Today, as India is focused on developing its clean and renewable energies industry, Australian companies are embracing new opportunities in the fast-growing market.
In this article, we focus on how Australian businesses are investing in the above industries – education and clean energy. Lastly, we discuss how Australian investors can improve their experience in India by approaching the country’s markets on a state-by-state basis.
Rural India key for Mondelez new investments
Consecutive bad monsoons and recent government policies – demonetization and the introduction of the goods and services tax (GST) – have resulted in declining sales overall for India’s fast-moving consumer goods industry.
Regardless, India’s economy is picking up the pace, and the overwhelming verdict by analysts point to faster growth rates registered in rural India than urban centers.
Funds can be repatriated from one country to another in various ways. The obvious implications are that such transactions entail foreign exchange risks, and companies also need to account for regulatory and tax risks.
Investors and companies should, therefore, note that choosing the right strategy to repatriate funds can reduce their tax burden and increase revenue. In turn, such cost savings make it possible for reinvesting in innovation and improving the productivity of the business.
This risk-reward calculus becomes more complex in India, which has a unique business environment.
GST Council finalizes e-way bill
At its 20th meeting held on August 5, the Goods and Services Tax (GST) Council approved the electronic way (e-way) bill, which mandates pre-registration of goods before transportation.
The e-way bill, which is likely to come into force by October 1, 2017, would be applicable for consignments worth more than US$780 (Rs 50,000) only. The Council has decided that the e-way bill will not apply to the inter-city movement of goods within 10 kilometers distance, as well as on items exempted from the GST.
The introduction of the e-way bill is expected to significantly reduce wait times at checkpoints, and will streamline the transportation process. The bill would be valid for a period between one day and 20 days, depending on the distance to be traveled.
By Vasundhara Rastogi
India’s e-commerce market is growing exponentially.
The latest data presented by the software industry body NASSCOM shows that India’s online market share grew at the rate of 19 percent last year and will touch an estimated US$33 billion in 2017.
In this article, we discuss some of the major drivers shaping the momentum in favor of e-commerce in India, as well as key legal and regulatory considerations for online businesses.
By Bradley Dunseith
Canadian foreign direct investment (FDI) into India reached an estimated US$14 billion in 2016. Much of this inflow came from large asset management companies and pension funds, which see India as an ideal destination for stable, long term investments.
Summarizing this optimistic view of India’s economic growth, Michael Sabia, President and CEO of Caisse de dépôt et placement du Québec (CDPQ), has called India’s potential “bright in a world of gray.”
Why are Canadian investors suddenly so charmed with India?
Engineering exporters, shipping companies in India suffer increased costs under GST
The Engineering Export Promotion Council of India (EEPC) has reported increased costs for shipping companies under the Goods and Services Tax (GST) regime due to changes to the refund schedule and roll back of tariff incentives.
Under the GST, drawback refunds will not be released till the end of September or October. Further, supplies of goods to export oriented units (EoU) from domestic tariff area are no longer considered as ‘deemed exports’; shippers will not be allowed to import inputs without payment of duty under Advance Authorization.