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Stable economic
reform regime

 

Investment friendly policies:   relaxed FDI norms   low tax rates   reduced import duties

After several years of being a largely closed economy, India initiated the process of opening up its economy in 1991 when it introduced far-reaching economic reforms of deregulation and liberalisation. These reforms have unlocked India’s enormous growth potential and unleashed powerful entrepreneurial forces. Since 1991, successive governments across political parties have successfully carried forward the country’s economic reform agenda.

During this reform period, India has witnessed increased participation in world trade, consistent, high economic growth and an increasingly favourable environment for domestic and foreign investors.

India is a founder member of the GATT (General Agreement on Tariffs and Trade) and is a signatory to the WTO (World Trade Organisation). India continues to play a significant role in the current WTO negotiations.

Going forward, infrastructure development is a major focus area and the government is actively encouraging private investment to bridge the gap. Projects underway include a ~US$12 billion National Highway Development Project, the “Sagar Mala” project for the expansion and modernisation of ports, inland navigation and maritime transport, the privatisation of Mumbai and Delhi airports and development of greenfield airports at Hyderabad and Bengaluru by the private sector.

The Government passed the Special Economic Zones (SEZs) Bill in 2005. SEZs are treated as deemed foreign territory with no import or export tariffs and extended periods for waiver of income taxes. Over 130 SEZs have already been formally approved by the government.

Legislation on Intellectual Property Rights (IPRs) has been adopted by the country’s Parliament. All IPR laws are TRIPS (Trade Related Aspects of Intellectual Property Rights) compliant with a fully functional Intellectual Property Appellate Tribunal.

 

 

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