AN INDIAN BUSINESS LAW PRIMER – KEY ISSUES FOR COMPANIES WANTING TO DO BUSINESS IN INDIA

• Publication date: February 2010

INTRODUCTION INDIA is the world’s most populous democracy and, with China, one of the two emerging superpowers in the global economy of the 21st century. Both countries have moved towards free enterprise systems in the past 20 years, opening their markets to trade and investment, in turn leading to rapid economic growth and sharply rising living standards. Unlike China, India has chosen to promote its services sector, exploiting its lar...

INTRODUCTION

INDIA is the world’s most populous democracy and, with China, one of the two emerging superpowers in the global economy of the 21st century. Both countries have moved towards free enterprise systems in the past 20 years, opening their markets to trade and investment, in turn leading to rapid economic growth and sharply rising living standards. Unlike China, India has chosen to promote its services sector, exploiting its large English-speaking labour force for call centres, data-processing operations and IT applications generally. Economists believe this focus offers greater rewards in the long term.

India’s economy has recorded an average annual GDP growth of over 6.5% in the past decade and is targeting average annual growth of over 8% for the next 10 years. The country claims to have one of the most transparent and liberal foreign direct investment regimes among emerging and developing economies with only a handful of sectors excluded from the right to 100% foreign ownership. A recent report by the International Finance Corporation, of the World Bank, found that it was “easier to start and operate a business now than it was three years ago in many large Indian cities.” In 14 of the 17 locations surveyed, the report said there were “significant business reforms at the national, state, and municipal levels…including computerising records, putting tax registration online, and setting up single-window systems for permit applications—all making it easier for businesses to comply with rules and regulations.” Yet there is still something missing. The deputy US trade representative noted earlier this year (2009) that investment between the US and China was “almost 10 times greater than the amount between the US and India.”

There was a need for a bilateral investment treaty -“the building block upon which freer trade grows.” Besides this, there are numerous problems in specific sectors occurring as a by-product of economic growth. New developments in India’s investment and industrial policies and in its relationship with the global economy are happening almost every day. This book is a detailed briefing for international businesses wanting to understand the crucial legal issues they must tackle if they want to work in India. It presents an edited series of reports by International News Services Ltd's New Delhi correspondent Raghavendra Verma in a single volume for the first time.

This insightful primer on legal issues facing companies wishing to do business in India is written by Raghavendra Verma, an experienced New Delhi journalist who is the chief south Asian correspondent for global news agency International News Services Ltd. http://www.internationalnewsservices.com/articles/1-latest-news/14664-book-advises-businesses-on-legal-pitfalls-of-working-in-india

Business Services Industry in India

TABLE OF CONTENTS
Chapter 1: An Emerging Power – Page 3;
Chapter 2: Labour Laws – Page 8;
Chapter 3: Financial Crime – Page 11;
Chapter 4: Taking Legal Action – Page 16;
Chapter 5: Environmental Matters – Page 23.
Credits and References – Page 27.
Number of words – 17,175