China-India Business Update: Dec. 8

Posted by Reading Time: 5 minutes

Dec. 8 – Welcome to our China-India round up in which we examine the latest bilateral news and commentary affecting foreign investment in the two countries.

Here we provide a list of recent India news of interest to China-based business people who may be considering doing business in, or with, India.

New Issue of China Briefing: The Asia Tax Comparator
China, India and Emerging Asia tax rates are compared in this complimentary issue of China Briefing Magazine, available now for immediate PDF download.

New Issue of India Briefing: India’s Goods & Service Tax and Retail Sector
In this new issue of India Briefing Magazine – titled India’s Goods & Service Tax and Retail Sector – we focus on two dramatic, ongoing initiatives by the Indian government to fuel economic activity in the country: the introduction of a dual goods and service tax and further opening in the retail sector.

China’s Neighbors (Second Edition)
This unique book is an introductory study of all 14 of China’s neighbor countries: Afghanistan, Bhutan, India, Kazakhstan, Kyrgyzstan, Laos, Myanmar, Mongolia, Nepal, North Korea, Pakistan, Russia, Tajikistan and Vietnam.

China’s Ex-Expats: Emerging Asia Beckons
An examination of 20 alternative Asian cities for expats leaving China, including Kolkata, Mumbai and New Delhi.

Corruption Remains Problematic in China and India
Despite their recent rise in the global economic landscape, China and India are perceived as two of the more corrupt nations in the world, according to an index released last week by Transparency International.

Fluctuations in India’s Rupee Rate and its Economic Impact
After depreciating to a record low of 52.73 against the U.S. dollar on November 22, the Indian rupee rose in value to 51.206 per dollar last week to complete the currency’s first weekly advance since October.

China-India to Become World’s Largest Trading Partners by 2030
Bilateral trade between China and India will increase from this year’s US$63 billion to US$100 billion by 2015, and Asia’s two leading emerging economies are set to become the world’s largest trading partners by 2030.

FDI in India’s Aviation Sector May Be Increased
The Indian government has indicated that it will move speedily to save the country’s deteriorating aviation industry by liberalizing rules on foreign investment.

Amendments in FDI Policy for India’s Pharma Sectors
The government of India has already allowed 100 percent FDI into the pharmaceuticals industry.

China Wants in on SAARC
China has expressed keen interest in upgrading its observer status within the South Asian Association for Regional Cooperation to that of First Dialogue Partner, a move that will enable it to get actively involved in discussions with the group.

After Canceling Border Talks, China’s General Ma Heads to India
China’s General Ma Xiaotian, deputy chief of the People’s Liberation Army General Staff, will be leading a delegation to meet with Indian Defense Secretary Shashikant Sharma on December 9.

India’s Updated 2011 Foreign Trade Statistics
India’s trade deficit for April-October this fiscal is estimated at US$93.69 billion, which is slightly higher than the deficit of US$85.65 billion recorded during April-October 2010.

India and China Continue to Struggle with Poverty
Despite rapid growth and their large proportions of global GDP, many people in China and India continue to live in poverty.

Dezan Shira & Associates provide foreign direct investment advice and services to clients in both China and India. The firm provides due diligence, incorporation, tax, accounting and other business services from twelve China offices and five in India. Please contact the practice at or as appropriate, visit the firm’s web site here, or download the firm’s brochure here.

Related Reading
Tax and Financial Management
In this issue of India Briefing, we take a look at the Indian tax environment generally, including types of taxes, fees and key dates, and continue on to focus specifically on requirements for foreign companies. Next, we look closer at the generous tax benefits available in Special Economic Zones, contingent on sector and operating dates, and finally expand our focus to India’s international trade agreements.

Complimentary Doing Business in East China Download
China Briefing’s recent “Doing Business in East China” book has just been made available for complimentary PDF download on the Asia Briefing Bookstore. Covering the regions of Shanghai, Jiangsu Province and Zhejiang Province, the 122-page guide contains city overviews of Changzhou, Hangzhou, Jiaxing, Nanjing, Ningbo, Shanghai, Shaoxing, Suzhou, Taizhou, Wenzhou, Wuxi, and Yangzhou as well as an introduction to each of the development zones within.

Doing Business in China
Our 156-page definitive guide to the fastest growing economy in the world, providing a thorough and in-depth analysis of China, its history, key demographics and overviews of the major cities, provinces and autonomous regions highlighting business opportunities and infrastructure in place in each region. A comprehensive guide to investing in China is also included with information on FDI trends, business establishment procedures, economic zone information, and labor and tax considerations. Priced at US$40 (PDF)

India Market Entry – The Establishment Legalities Explained
In this new issue of India Briefing we give the why and how for market entry into India. Specifically, we walk you through the eligibility requirements, tax liability, application and wind-up processes for liaison offices, project offices, branch offices, and private limited companies. For the latter, we also point out advantages over other types of offices and how these advantages may or may not apply to you.

The China Alternative
Our complete series on other manufacturing destinations in Asia that are now starting to compete with China in terms of labor costs, infrastructure and operational capacity. Our last report focused on India.

India Briefing News
Our magazine and regular news service about doing business in India. We cover topics relating to the Indian economy, the market in India, foreign direct investment and Indian law and tax.