Doing Business in India: Challenges & Opportunities

January 2016

Abstract

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.

Authors

Pratibha Jain

Partner, Nismith Desai Associates, India

Ms. Pratibha Jain is a Partner and also the Head of the Delhi office of Nishith Desai Associates. Ms. Jain brings with her a breadth of international and Indian experience having worked in New York, Tokyo, Hong Kong and Mumbai. She was till recently the Vice President and Counsel for Goldman Sachs in India. She has earlier worked as an associate with Sullivan & Cromwell LLP in their New York, Tokyo and Hong Kong offices and with Skadden Arps Slate Meagher and Flom LLP in their Hong Kong office. Ms. Jain's educational qualifications include B.A (Economics) Hons. and LL.B. degree from Delhi University, a Bachelor of Civil Law degree from the University of Oxford, where she was a St. Catherine's College Bursary Holder; and a LL.M. degree from the Harvard Law School, where she was a Samuel Morse Lane Fellow. Ms. Jain has extensive experience in US and Indian securities laws. Her areas of focus include International Litigation and Dispute Resolution, private equity, mergers and acquisitions, corporate and regulatory advisory and public policy matters.

Companies

Nismith Desai Associates

Nishith Desai Associates (NDA) is a research based international law firm with offices in Mumbai, Bangalore, Silicon Valley, Singapore, New Delhi, Munich. We specialize in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner. We focus on niche areas in which we provide significant value and are invariably involved in select highly complex, innovative transactions. Our key clients include marquee repeat Fortune 500 clientele. Core practice areas include International Tax, International Tax Litigation, Litigation & Dispute Resolution, Fund Formation, Fund Investments, Capital Markets, Employment and HR, Intellectual Property, Corporate & Securities Law, Competition Law, Mergers & Acquisitions, JVs & Restructuring, General Commercial Law and Succession and Estate Planning. Our specialized industry niches include financial services, IT and telecom, education, pharma and life sciences, media and entertainment, real estate and infrastructure.

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