AFTER A PERIOD OF economic slumber, the Narendra Modi government is moving up a gear.
The decision to allow 100 per cent foreign direct investment (FDI) in single-brand retail and construction will attract significant international funds. Cash-strapped real estate and infrastructure projects will get a boost. Foreign money has few places that offer safe and high returns. China cuts foreign investors down to the bone, leaving global companies with the crumbs. The Middle East is promising but politically volatile.
India’s ramshackle infrastructure – bad roads, poor quality housing, British-era bridges, shambolic small-town airports, decrepit public transportation and a low-tech SME ecosystem – presents a mouth-watering opportunity for FDI. Where else in the world would an American infrastructure or retail company in the Fortune 500 find a country with an aspirational middle class of over 300 million, still poorly served by the latest international high-tech products and services? Where else are returns on investment close to 10 per cent a year? With the rupee stable, even foreign exchange hedging costs have fallen.
What holds foreign investors back are three factors. One, inconsistent tax laws. The retrospective tax legislated by then Finance Minister Pranab Mukherjee and inexplicably kept in place by Finance Minister Arun Jaitley hangs like a sword of Damocles over companies like Vodafone and Cairn, part of the Vedanta group. The odium of this regressive tax has spread far and wide overseas and makes foreign investors wonder if the Indian government’s tax policies can be fully trusted.
Denne historien er fra February 3, 2018-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 3, 2018-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
MEMORIES & IMPRESSIONS
Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.
The Robotaxi Market
The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.
And the Nobel Prize Goes to AI
The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.
Ola Electrified
Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.
Sharp Slide in Industrial Output on Eve of Deepavali
India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.
Heralding the Solar Era with Sustainable Electrification
RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more
A WELL-GREASED MACHINE
The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh
Disruption Ahead: Beyond Organisation Charts and Structures
ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.
