Italian Investment into India

In the 2015 financial year, Italian companies invested US$334.7 million into India. In this article, we explain how India’s tier II cities are attracting Italian manufacturers, and highlight the active role Italy can play in India’s “Smart Cities” initiative. The post Italian Investment into India appeared first on India Briefing News.…
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Make in India: Still Falling Short after Three Years

Make in India was launched in 2014 by Prime Minister Modi to transform India into a manufacturing powerhouse, and boost investor interest. Here we assess what has been Make in India’s real impact on the ground – what has worked for the program and what needs to get done. The post Make in India: Still Falling Short after Three Years appeared first on India Briefing News.…
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The IT Sector: Time to Invest in India

In this edition of India Briefing Magazine, we make the case for why now is the right time for foreign firms to invest in India’s IT sector. India is the world’s leading outsourcing destination, and its IT sector is updating its SMAC capabilities, and up-skilling the existing labor pool. The post The IT Sector: Time to Invest in India appeared first on India Briefing News.…
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India-Myanmar Relations: Growing Multifaceted Bilateral Ties

Prime Minister Modi held his first bilateral talks with Myanmar between September 5 and 6. Relations between the two countries are multifaceted, with both sides sharing key concerns over maritime security and economic development. The post India-Myanmar Relations: Growing Multifaceted Bilateral Ties appeared first on India Briefing News.…
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India Implements WTO’s TFA – Boost to Trade Linkages, Ease of Doing Business

By Dezan Shira & Associates India is one of 112 countries to have ratified the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA), which took force on February 22 this year. Intended to overcome the global slowdown in trade, the TFA introduces new best practices for member-states to ensure the easier movement of goods across international borders. Nations who have ratified the agreement will be expected to implement changes to their customs infrastructure within two to three years. However, the basic set of provisions have to be implemented by the least-developed countries (LDC) within one year. In recent times, growing protectionism and doubts over the effectiveness of trade liberalization have put a damper on long-standing trade relationships across the world, including among western countries. The TFA is, therefore, an important international institutional mechanism; if successful – it will allow states to consolidate their trade linkages, and better engage with the global trading network. Below, we ask key questions on how will the TFA boost business in India, reduce costs, and improve the overall quantum of international trade. RELATED: Pre-Investment, Market Entry Strategy Advisory What is the TFA? The TFA stands for a series of reforms that will improve transparency, mobility, and predictability in the conduct of trade across borders.…
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Australian Investment into India: Skill India, Clean Energy Market

By Bradley Dunseith Australia’s growth prospects in India are expanding. Among key opportunities identified by the country’s entrepreneurs are: investing in India’s higher education and vocational sectors and India’s growing renewables market. India’s rapid growth has resulted in the need for complex, skill-oriented jobs on one hand, and accelerated its energy consumption and requirements, on the other. When looking at the Indian education and training sector, Australian investors observe that India’s large labor supply does not automatically serve the country’s high employment targets. Rather, the availability of labor is now becoming a challenge for the government as industrial innovation and automation necessitates up-skilling and technical training. Accordingly, this sector has captured the imagination of startups and foreign investors – incentivized by the Modi government’s support for private sector participation. In the case of India’s energy markets, Australia’s trade and business relationship with India previously centered on the former being a major supplier of coal to India. Today, as India is focused on developing its clean and renewable energies industry, Australian companies are embracing new opportunities in the fast-growing market.  In this article, we focus on how Australian businesses are investing in the above industries – education and clean energy. Lastly, we discuss how Australian investors can improve their experience in India by approaching the country’s markets on a state-by-state basis.…
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E-commerce in India: Market Trends and Regulations

By Vasundhara Rastogi India’s e-commerce market is growing exponentially. The latest data presented by the software industry body NASSCOM, India’s online market share grew at the rate of 19 percent last year, and will touch an estimated US$33 billion in 2017. In this article, we discuss some of the major drivers shaping the momentum in favor of e-commerce in India, as well as key legal and regulatory considerations for online businesses. India’s growing e-commerce space Significant improvements in technology and the rapid pace of growth in the digital payments sector over the last three years have increased the number of Indians buying online.   In 2016 alone, over 69 million Indians bought their apparels and accessories, books, mobiles, laptops, and other electronic items online. By 2020, this number is expected to rise to over 175 million – owing to the technology transformation led by the rise in use of smartphones and tablets, and improved access to low cost internet. The boost in popularity of online sales platforms and low investment risks present immense opportunities for traditional retailers. Leading players in the fashion retail industry like H&M and Zara are already looking at e-commerce as an additional channel for sales and consumer reach.…
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India’s Growth Story Opens New Opportunities for Canadian Investments

By Bradley Dunseith Canadian foreign direct investment (FDI) into India reached an estimated US$14 billion in 2016. Much of this inflow came from large asset management companies and pension funds, which see India as an ideal destination for stable, long term investments. Summarizing this optimistic view of India’s economic growth, Michael Sabia, President and CEO of Caisse de dépôt et placement du Québec (CDPQ), has called India’s potential “bright in a world of grey.” Why are Canadian investors suddenly so charmed with India? Canada investing in Indian infrastructure India’s economy is growing at 6.1 percent per year. By 2022, India will have the world’s largest and youngest labor force. The middle class is expanding, fueling a dynamic consumer market. The country is now one of the most popular destinations for FDI the world, reaching a record US$60.1 billion in FDI inflow in the 2016 financial year (FY).   RELATED: Pre-Investment, Market Entry Strategy Advisory India needs stronger and more expansive infrastructure to make this economic growth sustainable. Canadian pension funds, which look for long term investments, like CDPQ, Ontario’s Teachers Pension Plan (OTPP), and the Canadian Pension Plan Investment Board (CPPIB) have begun investing in India’s power, construction, and logistics sectors. In the first half of 2017, CPPIB became India’s top investor in real estate, entering two deals worth US$750 million, collectively.…
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Rising Costs for India’s Engineering Exporters, Digital Economy Growth Trends: India Market Watch

Engineering exporters, shipping companies in India suffer increased costs under GST The Engineering Export Promotion Council of India (EEPC) has reported increased costs for shipping companies under the Goods and Services Tax (GST) regime due to changes to the refund schedule and roll back of tariff incentives. Under the GST, drawback refunds will not be released till the end of September or October. Further, supplies of goods to export oriented units (EoU) from domestic tariff area are no longer considered as ‘deemed exports’; shippers will not be allowed to import inputs without payment of duty under Advance Authorization. In addition, exporters will incur the costs of paying the basic customs duty and cesses, as input tax credit (ITC) can only be availed on the IGST. Resolving the sector’s grievances is necessary: the export of engineering goods accounts for the biggest share in India’s total export basket; they are vital for job creation, particularly in small and medium enterprises. RELATED: Tax Compliance Advisory India is world’s third-biggest beef exporter In their latest report, the Food and Agriculture Organisation (FAO) and the Organisation for Economic Cooperation (OECD) establish that India is the world’s third-biggest exporter of beef. The OECD-FAO Agricultural Outlook 2017-2026 predicts that India will likely hold on to this position over the next ten years.…
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India Market Watch: Fewer IT Jobs Created, India’s Realty Sector Leads Emerging Markets

NASSCOM forecasts decline in new IT jobs In a sign of the troubling times in India’s information technology (IT) sector, industry body National Association of Software and Services Companies (NASSCOM) has forecasted a major decline in new jobs created over the current fiscal year ending March 31, 2018. According to NASSCOM’s estimates, the IT sector will create 20 to 38 percent fewer new jobs in the fiscal year (FY) 2017-18 as compared to FY 2016-17. What this means in numbers is that the sector will potentially create between 130,000 to 150,000 new jobs in FY 2017-18, including both through lateral recruitment and campus placement. Jobs generated in the previous fiscal year stood at 180,000 – in stark contrast to the generation of 240,000 jobs a year, during the industry’s heyday in the 2000s. Presently, India’s IT sector is facing several structural challenges: automation, job cuts and reskilling needs, changing digital requirements of clients, and protectionist hiring rules in Western countries, which have cumulatively reduced scope for job growth in India while increasing overall operation costs in the near term. RELATED: Business Intelligence Solutions India leads emerging markets with its realty sector boom India’s real estate sector seems to have found favor with foreign investors as 2017 saw the most inflows into the sector – amounting to US$2.49 billion (Rs 160 billion) in the first six months – than ever witnessed during the same period in previous years.…
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Foreign Investment in Indian Retail: Challenges and Opportunities

By Bradley Dunseith India’s regulatory framework on foreign direct investment (FDI) in retail is one of the most complex in the world. But, navigating this perplexing system means gaining access to one of the world’s fastest growing consumer markets. This article outlines India’s regulatory landscape for FDI in retail while offering suggestions on how foreign businesses can successfully maneuver through them.  RELATED: Business Strategy & Operation Advisory Types of retail The Indian government categorizes retail into two types: single-brand and multi-brand.  As the names suggest, single-brand retail refers to businesses that sell only a single brand of goods to consumers. Multi-brand retail refers to businesses that sell multiple brands through one outlet such as Wal-Mart. If a foreign business owns more than one brand, that business has to apply for FDI approval for each individual brand. A foreign company cannot sell these brands in the same outlet. Single-brand retail The Department of Industrial Policy and Promotion (DIPP) permits 49 percent of FDI into single-brand retail under the ‘automatic route’ and 100 percent FDI with government approval. To obtain government approval for 100 percent FDI, foreign retailers must comply with the following conditions: Their brand must be internationally used and recognized; The ‘branding’ of the product must occur during the manufacturing process; The investor must be the owner of the brand; and A minimum of 30 percent of the material used to make these products must be sourced in India within the first five years of establishing a retail outlet.…
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