Other Briefings
India to Set Up Tribunals for Economic Disputes
Jun. 11 – India is considering establishing dispute resolutions panels and courts that will specifically address economic disputes. This could that could lead to revisions in Indian law. Initially, the proposal was presented by the Prime Minister’s Council on Trade and Industry. “Legislations dealing with sectors such as pension funds, insurance, banking, company affairs and […]
Indian Ministries to Support 100 Percent FDI in Multi-Brand Retail
May 25 – India’s Commerce and Industry Ministry is likely to support a move to allow 100 percent foreign direct investment in multi-brand retail that could open the market further for multinational companies like Tesco and Wal-Mart. The proposed paper will recommend strict domestic sourcing requirements and require investments in backward linkages with the official […]
India Trade Pact with ASEAN Members Applicable by August
May 24 – India’s trade pact with seven member countries of the Association of Southeast Asian Nations (ASEAN) will begin to take effect in August. The India-ASEAN trade pact was signed last year but was initially only adopted by ASEAN members Singapore, Thailand and Malaysia in January. The other seven members of the group will […]
India Set to Overhaul Labor Law
May 21 – The Indian government has announced plans to revamp its labor law to make it easier for both employees and employers to settle disputes. This may mean that the new law will provide more avenues for resolving labor grievances out of court. Companies with a minimum of 20 employees may be required to […]
India, United States Settle Tax Profit Dispute
May 20 – A tax dispute between India and the United States has been resolved with India agreeing to tax 17.5 percent of the profits earned by the Indian subsidiaries of U.S. companies in 2004-05. Previously, India wanted to implement a 25 to 30 percent tax on profits of IT services and research arms of […]
India May Widen Foreign Investment Definition
May 18 – The finance ministry is considering widening the scope of foreign investments to include instruments that give voting rights to foreign investors. Under the new FDI policy, a company qualifies as a local company if it has less than 50 percent foreign investments and has Indian directors as a majority resident. If the […]
Commerce Ministry Proposes Increased FDI in Defense Sector
May 18 – India’s Commerce and Industry Ministry has released a discussion paper that suggests increasing foreign direct investment in the defense sector from 26 percent to 74 percent to improve manufacturing and technology transfer in the country. The response to the proposal has been varied, with some suggesting an increase of 49 percent instead […]
New Oversight Body to Enforce FDI Ban on Sensitive Sectors
May 14 – The government will establish an oversight body to prevent foreign direct investments from entering banned sectors. This is to prevent FDI from entering prohibited sectors such as multi-brand retail, gambling, betting, lottery, atomic energy and plantation. “The proposal was discussed at a meeting attended by officials from various ministries including the department […]
