Feb. 21 – Overseas investors have invested about Rs. 14,000 crore into the Indian equity market so far this month and experts expect this positive trend to continue in the future as well.
Since the beginning of 2012, foreign institutional investors (FIIs) have infused a total of Rs. 24,225 crore (US$4 billion) into Indian stocks, after taking into account Rs. 10,358 crore of net inflows during January 2012. Continue reading
New opportunities and developments lie in store for foreign retailers
By Chris Devonshire-Ellis and Ankit Shrivastava, Dezan Shira & Associates
Feb. 2 – As India has liberalized its single brand retail industry to permit 100 percent foreign investment, we take a look at the regulatory issues and legal structures pertinent to establishing operations in this new dynamic market. That India should be well on the radar for foreign retailers was recently supported by A.T. Kearney, whose 2011 Global Retail Development Index ranks the nation as fourth globally.
India’s retail industry is estimated to be worth approximately US$411.28 billion and is still growing, expected to reach US$804.06 billion in 2015. As part of the economic liberalization process set in place by the Industrial Policy of 1991, the Indian government has opened the retail sector to FDI slowly through a series of steps: Continue reading
Dec. 22 – Asia Briefing takes a closer look at India’s top six cities (by GDP) in the newly released Indian city guides for Mumbai, New Delhi, Kolkata, Bangalore, Chennai and Hyderabad. These city guides are available for free download on the Asia Briefing bookstore.
1. Mumbai
GDP: US$209 billion
Mumbai is the most populous city in India and in the top five in the world. While the 2011 census estimated population at 12.4 million, external estimates suggest double that. Continue reading
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
Oct. 3 – Leave travel allowance (LTA) is the one of the most common cases of reimbursement adopted by employers to compensate employees due to the tax benefits attached to it. Section 10(5) of the Income Tax Act (1961) read with Rule 2B, provides for the exemption and outlines the conditions subject to which LTA is exempt.
Who is covered by the benefits?
LTA exemptions can be maintained where the employer provides LTA to a member of staff for leave to any place in India taken by the employee and their family. Such freedom is limited to the extent of actual travel costs incurred by the employee. Travel has to be undertaken within India and overseas destinations are not covered for exemption. Continue reading
Sept. 29 – Taking into consideration the particular needs of the infrastructure sector, the existing external commercial borrowing (ECB) policy has been reviewed in discussions with the Government of India and it has been decided to permit Indian companies which are in the infrastructure sector – where “infrastructure” is defined under the existing guidelines on ECB – to avail of ECBs in Chinese renminbi (RMB), under the approval route, subject to a yearly cap of US$1 billion until further review. Continue reading
Sept. 20 – With Japan’s economy in the doldrums and expected to shrink following the devastating earthquake and tsunami that hit the country earlier this year, India’s 8 percent growth is likely to see it emerge as the world’s third largest economy this year, in purchasing power parity terms.
India currently ranks fourth, with 2010 International Monetary Fund data showing that the Japanese economy was worth about US$4.31 trillion, with India close behind at US$4.06 trillion. Continue reading
Sept. 20 – China’s most valuable bank – Industrial and Commercial Bank of China (ICBC) – has become the first Chinese bank to establish itself in India. The bank is planning to start with an investment of US$100 million and aims to lend to corporations and cover sectors where Chinese companies have a presence such as power, telecom and infrastructure. The bank has set up an office in the Bandra-Kurla business district in central Mumbai and has appointed Sun Xiang as CEO for India. Continue reading
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at india@dezshira.com, download our corporate brochure or visit at us www.dezshira.com
