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State Spotlight: Investing in Telangana

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By Dezan Shira & Associates
Editor: Nishant Maddineni

Telangana_montage2Following its separation from Andhra Pradesh in June 2014, foreign firms have been closely examining Telangana’s suitability as a destination for foreign direct investment (FDI). With a population of 35,286,757 and a GDP of $53.9 billion, there is ample room in India’s newest state for exceptional growth.

Many foreign investors were apprehensive about the creation of Telangana. These observers worried whether the state’s government would be able to provide the political stability necessary for a favorable business environment. However,  a number of encouraging initiatives and policies have been implemented to increase business activity and foreign interest in Telangana.

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Using India’s Free Trade & Double Tax Agreements – New Issue of India Briefing Magazine

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Cover 250 x 350The newest issue of India Briefing magazine, titled “Using India’s Free Trade & Double Tax Agreements“, is out now and available as a complimentary download in the Asia Briefing Bookstore.

Contents
  • Navigating India’s Bilateral & Multilateral Free Trade Agreements
  • Using India’s Double Tax Agreements
  • Accessing India and ASEAN Through Singapore

With a reform minded, majority government in place for the first time in 25 years, resurgent trade flows, and improved bilateral relations, India is now perfectly positioned to start making waves in international investment. For too long now in the shadow of China, India’s young and affordable workforce are part of the underlying fundamentals that should project the nation forward over the next decade.

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Expect Labor Reforms at the State Level in 2015

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 By Adam Pitman, International Business Advisory Manager, Dezan Shira & Associates 

Foreign companies should begin preparing for labor reforms at the state level in the coming year. Following national labor reforms in November 2014, public and private interest groups have renewed calls for labor reforms in 2015.

Local media reports claim the federal government (known locally as “the center”) is interested in streamlining the country’s vast body of labor law into simplified categories. However, companies shouldn’t hold their breath.

The ruling Bharatiya Janata Party (BJP) has an expansive reform agenda; it is unlikely to expend any more political capital on contentious labor reforms. Instead, businesses should expect labor reforms at the state level. In most cases this will entail business-friendly policies for key industries, but foreign companies, especially those in labor-intensive industries, need to begin preparing for change.

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Remitting Money from India: Procedures and Regulations

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By Dezan Shira & Associates
Editor: Nishant Maddineni

CB-illustrationSending money outside of India can often be a daunting procedure for both foreign businesses and expatriates living in the country. There are various schemes and regulations that limit how much money can be remitted and for what purpose. 

Outward remittance generally has to be approved under the Foreign Exchange Management Act (FEMA), 1999, which regulates all transactions involving foreign exchange. The act is aimed at making external trade and payments easier as part of the country’s economic liberalization in the 1990s. 

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Presidential Visit to Buoy U.S. – India Business Relationships

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By Andrew Salzman, Senior Associate, Dezan Shira & Associates 

This week, U.S. President Barack Obama traveled to India to attend the annual Republic Day parade at the invitation of Prime Minister Narendra Modi. Obama became the first U.S. president to attend the Republic Day festivities, and the only president to make two visits to the country.

The importance of the trip should not be understated. While U.S.-India relations in the private business sector continue to thrive, government relations have floundered, causing difficulty for U.S. business in India. However, agreements reached during the recent trip indicate continued government cooperation to improve ease of doing business.

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Choosing an Investment Model for India’s Medical Devices Industry

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By Dezan Shira & Associates
Publications Editor: Samuel Wrest

Medical IllustrationThis year, India’s medical devices industry will be opened up to 100 percent foreign direct investment (FDI).  The move had been in the works for some time – India’s union cabinet met last year to discuss the reform, while the industry’s regulatory framework has been tweaked several times since it was first introduced in 2005.

India presents an attractive market opportunity for global medical device manufacturers, but the country has never been able to tap into its potential as a domestic manufacturing base. Despite having a medical device market that ranks in the world’s top 20, the industry has a long history of being under-resourced.

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Land Acquisition May Become Easier in India, but Risks Remain

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 By Adam Pitman, International Business Advisory Manager, Dezan Shira & Associates 

When foreign companies announce plans to invest in India, they are often inundated with incentives from different levels of Indian government. However, outside the halls of government, officials are constrained in what they can feasibly deliver. In many cases, officials trip on their own shoelaces – projects worth billions of US dollars are currently stalled because of land acquisition regulations.

In recent weeks, the government announced two initiatives that will make acquiring and repurposing land easier for many businesses. Reforms to land acquisition and environmental regulations compliment the government’s ‘Make in India’ initiative, which is designed to improve conditions for manufacturers, but will also improve international perception of India’s investment climate.

The government’s initiatives will alter pre-investment considerations for many businesses; some burdensome aspects of land acquisition and use will be removed for projects in critical development areas. The reforms will also change the nature of on-going land disputes. However, land acquisition and environmental regulations remain sensitive issues; market entry and business advisory services are still mission-critical for foreign companies.

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Investing in India’s Emerging Wine Industry

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By Dezan Shira & Associates
Editor: Grace Tate 

India’s expanding wine industry is in the midst of a vital transition. Last year, the country’s wine production hit a record 17 million liters, with export sales rising 40 percent year-on-year to reach US$4.4 million in the first 7 months. With a rapidly growing export sector, expanding domestic consumer market and increasing industry support in major wine-producing States, the Indian wine industry has potential to be a global market competitor.

This year, the Indian Government, in conjunction with the newly formed Indian Grape Processing Board (IGPB), is aiming to finalize the harmonization of Indian wine standards with the International Organization of Vine and Wine (OIV) guidelines. Set to be a catalyst for state reform, the new standards are good news for producers, investors and traders alike, who have eagerly anticipated the industry’s rise for the past decade.

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Asia Briefing Bookstore Catalogue 2013 Dezan Shira & Associates
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