Doing Business in India: Challenges & Opportunities
Pratibha Jain, Partner, Nismith Desai Associates, India
India very recently moved up 12 positions to 130th among 189 nations on the ‘ease of doing business’ matrix announced by World Bank recently giving a thrust to India’s attempt at catapulting into a preferred investment destination on the global arena. Earlier, India was ranked 142nd by the World Bank in the rankings released in the previous year stimulating a clamour to move ahead.
The November 10, 2015 Press Note issued by the Department of Industrial Policy and Promotion (“DIPP”) unleashing a slew of measures to loosen the shackles around Foreign Direct Investment Policy (“FDI Policy”) is a step towards greater transparency and creating a worthy business environment in India. Be it full fungibility of foreign investments in the private banking sector, removal of investment caps and restrictions in the broadcasting and construction sector, permissibility to invest in hitherto fortified sectors such as defence, agriculture and plantation sector, flexibility for e-commerce trading for manufacturers’, opening up of LLPs for FDI investments are all aspects of India’s new tryst with liberalisation and ease of doing business drive. However, India still ranks as one of the toughest jurisdictions for doing business. It’s important to understand what the key issues while doing business in India are and how to navigate for a smooth investment and exit.
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