FDI and Foreign Trade

FDI in India’s Aviation Sector May Be Increased

Nov. 24 – The Indian government has indicated that it will move speedily to save the country’s deteriorating aviation industry by liberalizing rules on foreign investment. A draft cabinet note on foreign direct investment has put the FDI cap for foreign airlines at 26 percent against 24 percent planned originally by the Civil Aviation Ministry to the Department of Industrial Policy and Promotion.

Presently, foreign direct investment up to 49 percent is permissible in the aviation sector, but foreign airlines are not permissible to invest in a domestic airline company. The cabinet note said that the existing restrictions need to be removed. Continue reading →

Amendments in India’s Industrial Policy

Nov. 15 – The main purposes of India’s Industrial Policy of the Government are to maintain a sustained growth in productivity, to enhance gainful employment, to achieve optimal utilization of human resources, to attain international competitiveness, and to transform India into a major partner and player in the global arena.

The Policy focus is on deregulating Indian industry, giving the industry freedom and flexibility in responding to market forces and providing a policy regime that facilitates and fosters growth within the country’s industry. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade, Legal and Regulatory, Location | Tagged India Economic Policy, India FDI, India FDI Policy, India Industry, India Investment, India Regulatory | Leave a comment

Amendments in FDI Policy for India’s Pharma Sectors

Nov. 10 – The government of India has already allowed 100 percent FDI into the pharmaceuticals industry. Recently, the government has reviewed its policy in the particular sector. Below are the specific points:

FDI, up to 100 percent, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector.
FDI, up to 100 percent, would be permitted for brown field investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the government approval route. Continue reading →

Posted in Chemical & Pharmaceutical, FDI and Foreign Trade, Legal and Regulatory, Regulatory Update | Tagged Automatic Route, Government Route, India Brownfield Investments, India Greenfield Investments, India Pharmaceutical, India Regulatory | Leave a comment

India’s Trade Developments for Oct. 2011

Nov. 9 – India’s exports have recorded development of 10.8 percent during October 2011 at US$19.9 billion, while imports were at US$39.5 billion over the same period for a growth rate of 21.7 percent. As such, the trade deficit for the particular period was US$19.6 billion.

Collective export figures for the tenure of April to October 2011 stand at US$179.8 billion recording a growth of 46 percent and imports for the same period stand at US$273.5 billion registering a growth of 31 percent. Balance of trade for the period stands at negative US$93.7 billion. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade | Tagged India Economy, India Exports, India FDI, India Imports, India Trade, India Trade Balance | Leave a comment

India Issues Exchange Rate Circular for Overseas Currencies

Oct. 31 – India’s Ministry of Finance (Department of Revenues) issued a circular stating that the rate of exchange for conversion of each of the foreign currencies listed in the tables below. Both Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from November 1, 2011 be the rate mentioned against it in the corresponding entry, for the purpose of the said section, relating to imported and exported goods. Continue reading →

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting | Tagged India Currency Conversion, India Exports, India Foreign Exchange, India Imports, India Trade, Ministry of Finance, Rupees | Leave a comment

Incentives for India’s Textiles Industry

Oct. 25 – India’s Foreign Trade Policy (2009-14) announced by the Union Minister of Textiles, provides various incentives for the country’s textiles sector. The sector has been stumbling lately under financial uncertainty at the global level as well as pulls and pressures at the domestic level.

“A multi-pronged strategy has been adopted by providing a stable policy regime, adopting a conscious market diversification plan and providing additional support to sectors hit badly by the global recession. The Ministry also encouraged technological up-gradation of export sectors, and undertook a simplification of procedures to reduce transaction costs and decided to consolidate India’s traditionally strong sectors of the economy while focusing on sunrise sectors as well,” according to the Ministry of Textiles (MoT). Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade, Featured, Markets | Tagged European Union, Focus Product Scheme, India Foreign Trade, India Incentives, India Tax, India Textiles, Niryat Bandhu, United States | Leave a comment

New Issue of India Briefing: India’s Goods & Service Tax and Retail Sector

Oct. 24 – In this new issue of India Briefing Magazine – titled India’s Goods & Service Tax and Retail Sector – we focus on two dramatic, ongoing initiatives by the Indian government to fuel economic activity in the country: the introduction of a dual goods and service tax and further opening in the retail sector.

India’s existing indirect tax structure is being restructured with a synchronized tax system and uniform levy, continuing national tax structure reform to encourage entrepreneurial initiatives and economic activity in India. A dual – Central and State level – Goods and Service Tax (GST) is planned to replace most of India’s current indirect taxes. A country-wide GST is anticipated to be realized by 2012-13.

Additionally, the Indian government is currently discussing the removal of the 51 percent cap on FDI into single-brand retail outlets and allowing some degree of FDI in multi-brand retailing, which has so far been prohibited in India. Recent protests and boycotts of modern retailers in India indicate that the forays foreign retailers have made into India’s retail sector are not welcomed by all. Continue reading →

Posted in FDI and Foreign Trade, Featured, Finance, Tax and Accounting | Tagged India Briefing Publications, India China Comparison, India Goods and Service Tax, India GST, India Multi-brand Retail, India Retail, India Single-brand Retail, India Tax | Leave a comment

India Announces Special Incentives for Exporters

Oct. 19 – The government of India announced a Rs. 900-crore package for exporters to assist them to fight with the slowdown in developed markets and rising input costs. The Reserve Bank of India has already declared an interest subsidy of 2 percent on rupee export credit for handicrafts, handlooms, carpets and small and medium exporters. Along with the interest financial support, the total relief package for exporters stands at nearly Rs. 1,700 crore. Continue reading →