September 25th, 2012
Econintersect: India has decided to reverse a policy of inhibiting foreign companies from entering their domestic markets. This is part of the new effort by the Indian government to try to increase foreign investment in the country. One of the first big names to announce plans to open retail facilities in India is Walmart. The company has announced that it expects to open its first store in India within 12-18 months.
The changes in policy have come after the Indian economy showed signs of serious slowing this summer. Just six months ago India passed tax changes retroactively that affected foreign companies that had been doing business. One case involved a 40-year retroactive tax increase implemented in April. (See Sanjeev Kulkarni, GEI News.)
The reversal of the foreign investment unfriendly actions and the lowering of other barriers against foreign company entrance, expansion and investment in India has led investment management companies like Blackrock to upgrade India. This comes as the Indian stock market has been one of the best global performers in recent months.
An important factor for India is the infrastructure investments that foreign companies will make directly and support through payment of taxes. This is discussed in the following CNN video featuring Richard Heald, CEO of UK India Business Council:
Here are the stories that cover the areas discussed above and other recent news from India:
Larsen’s labourers loosed
“HELLO! Hello!” is what A.M. Naik says when he wants to ensure you are listening. He might lock a massive hand around your wrist, too, and grin. A bear of a man, aged 70, he lives and breathes the firm he has run since 1999 and worked at for over four decades, Larsen & Toubro (L&T)…