Foreign Investment 20 Jun 2015 by Tojo Jose

Excessive judicial activism and retrospective tax laws are hurting investment image: FM

Excessive judicial activism and retrospective tax laws are hurting investment image: FM

Finance Minister Arun Jaitely has stated that government is bringing legal changes to control excessive judicial activism that hammers investment sentiments. The FM was speaking to the US business community in New York. Mr Jaitely has attributed excessive judicial activism for some of the unrest in the investment front. “Excessive” judicial interference is not investor-friendly. The government is thinking about changes in the laws to streamline the judicial process on this matter. He was referring some of the cases were the government was dragged into international settlement mechanisms and bilateral investment treaty bindings due to overstepped verdicts. Referri

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Foreign Investment 17 Jun 2015 by Tojo Jose

Alibaba pushes hard through paytm and snapdeal

Alibaba pushes hard through paytm and snapdeal

World’s second largest ecommerce firm, China’s Alibaba is working hard to enter into the Indian market.  Mobile payment firm, Paytm  which has 25% shareholding by Alibaba, launched a three day fashion sale, sending strong message across the ecommerce world. Reports also indicate that the China bound firm with inventory model has renewed its once aborted stake holding attempt in Snapdeal. Alibaba along with Taiwan’s handset sourcing firm Foxconn are making fresh discussion with Snapdeal for a strategic investment. Certainly, Paytm’s ecommerce entry will make pressure on Snapdeal to be a soft bargainer. Last time, according to Alibaba sources,

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India and China 10 Jun 2015 by Tojo Jose

China denies contact between the PLA and North East insurgents

China denies contact between the PLA and North East insurgents

China has denied any connection between the Chinese Army- the PLA, and the North East insurgents who made a gruesome attack on Indian security forces last week. The Global Times quoting Chinese officials reacted that any such argument about the connection between the two sides is “absurd”. News paper reports in India earlier quoted the link between Nationalist Socialist Council of Nagaland-Khaplang (NSCN-K) – and the PLA. The strong denial about the PLA’s role came in a Global times article on Wednesday morning. The article has quoted Indian Express report about Indian official claiming recordings of a phone call between a PLA official and an NSCN-K lea

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Foreign Investment 04 Jun 2015 by Tojo Jose

Treaty benefit country - Singapore increases FDI share in India consistently

Treaty benefit country - Singapore increases FDI share in India consistently

Foreign Direct Investment data published by WTO indicates that countries that enjoy strong treaty benefits are the important source of FDIs to India.  Of all, Mauritius continues to be the leading origin, weighted by one of the most concessional treaty benefits. But an interesting development is the rise of Singapore as a prominent FDI source.  Singapore based FDI has increased from $ 2.3 bn in 2012-13 to $6.7 bn in 2014-15. In 2013-14, Singapore piped Mauritius to second position. India and Singapore have amended their DTAA in 2005, extending tax benefits and introducing safety measures including limitation of benefit clauses. Since then, Singapore is becoming an impor

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Foreign Investment 28 May 2015 by Tojo Jose

DIPP is working on fresh FDI guidelines for e-commerce sector

DIPP is working on fresh FDI guidelines for e-commerce sector

Foreign investment policy think tank, Department of Industrial Policy and Promotion (DIPP) is working on fresh guidelines including foreign investment policy in the sector. According to the Joint Secretary of DIPP, Sri Atul Chaturvedi, the DIPP will address the war between the ecommerce sector and the ‘brick and mortar retailers’ through a new FDI policy in the ecommerce sector. At the same time, he ruled out extra regulation on the sector in the context of the turf war between the two. But the real factor that motivates the government to have a look into the existing FDI policy in the sector is the intense competition going at present between various ecommerce c

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Foreign Investment 23 May 2015 by Tojo Jose

Domestic treatment to NRI/OCI investment gives more role to Diaspora in economy building

Domestic treatment to NRI/OCI investment gives more role to Diaspora in economy building

The government’s decision on foreign investment front by considering NRI and Overseas Citizens of India investment as domestic investment will make the role of Diaspora more important.  Already, many measures were introduced in the last two years or so to give more economic, financial and educational rights to the two diaspora categories –the NRIs and Overseas Citizens of India (OCI). What makes the diaspora segment very important for India is their size. India is having the second largest expatriate community in the world after China. Besides, the community is very progressive and is showing strong connectedness with the motherland. It is because of this siz

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India and China 18 May 2015 by Tojo Jose

Chinese banks’ $2.5 bn loan to Airtel is a trend setter

Chinese banks’ $2.5 bn loan to Airtel is a trend setter

The big loan availed by Airtel from the two Chinese banks strengthens the Asian power’s rising status as a global lender. At the same time, every chance is that the loan will be followed by Airtel’s equipment order from China for its mobile data network expansion. Airtel has secured $2.5 bn from China Development Bank and Industrial Commercial Bank of China during the visit of PM Narendra Modi. In most cases, the loans will be denominated in Renminbi; the Chinese currency. There is every chance that the Airtel loan also will be a renminbi denominated loan. First major loan intake by an Indian company from China was Reliance Power and Reliance Communications, three

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India and China 15 May 2015 by Tojo Jose

PM Modi announces e visas to Chinese tourists; but remains silent on ‘One Belt One Road’ Project

PM Modi announces e visas to Chinese tourists; but remains silent on ‘One Belt One Road’ Project

In a gesture to create deeper people to people engagement, Prime Minister Narendra Modi has announced e tourist visas for Chinese tourists. The e visas seem to be a one sided gesture in terms of its commitment even though the two countries have signed two dozen agreements covering many areas of cooperation. A notable absentee in the entire engagements so far is India’s views on China’s transcontinental connectivity project – the ‘one belt one road’ project. On the other side, the Chinese leadership also has not publicly raised India’s stand on the matter. The visit of Mr Modi is taking place at a time when China is on the track of extending

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Trade 05 May 2015 by Tojo Jose

France is bargaining under the newly formatted Rafale deal

France is bargaining under the newly formatted Rafale deal

Indications are that France is using couple of surprisingly got opportunities to strengthen its bargaining position in its deal with India. After India has switched to urgency on the delivery of the aircrafts, France is slowing a little bit on the deal. Visit of the French Defence Jean-Yves Le Drian to India to design conditions for the direct purchase of Rafale has been rescheduled for next week. France so far is in an advantageous position on the deal as it has secured a surprising 24 unit order from Qatar. The Middle East crisis has benefited France and the French Defence Minister is reaching Delhi only after his stay at Doha after signing the initial agreement with Qata

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Trade 04 May 2015 by Tojo Jose

IPRs: US maintains India in the list of priority countries, but goes for a lightened stand

IPRs: US maintains India in the list of priority countries, but goes for a lightened stand

In an indication of continued confrontation with India on IPR issues, the USTR has maintained India in its ‘priority foreign countries’ list. The United States Trade Representative(USTR) is the United States government agency responsible for developing and recommending United States trade policy to the President. Priority countries according to the USTR are the one where US companies and products face trade barriers in the form of IPR violations related to patents, copyrights and trade marks.  The list is updated annually and US government advocates sanctions against the countries included in the list. Over the last couple of year’s India is strongly r

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