China-India Business Update: Jan. 25

Posted by Reading Time: 5 minutes

Jan. 25 – 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 individuals who may be considering doing business in, or with, India.

New Issue of India Briefing: FDI and Manufacturing Electronics in India
In this issue of India Briefing Magazine, we walk you through the National Manufacturing Policy, the draft National Policy Electronics, and other related policies and schemes key to foreign investment in the sector.

India’s Top Six Cities – Complimentary City Guides!
Asia Briefing takes a closer look at India’s top six cities (by GDP) in the newly released Indian city guides for Mumbai, New Delhi, Kolkata, Bangalore, Chennai and Hyderabad.

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

India Allows 100% FDI in Single Brand Retail
The Indian government on Tuesday agreed to allow 100 percent foreign ownership in single brand retail stores, paving the way for international businesses such as Starbucks, Ikea and Adidas to operate independently in the country without having to involve local partners.

Greater Opportunities in India than China
Interview with Dezan Shira & Associates’ Principal and Founder Chris Devonshire-Ellis conducted by the emerging market news platform El Emergente.

Why India Matters
Investing in India makes sound Asia strategic sense when coupled with China.

India to Inspect Chinese Drug Manufacturers
India will send a team of officials to China next month to conduct inspections on drug manufacturing units that export bulk drugs to India.

Call Your Broker – India Allows Individual Foreign Investors in Stock Markets
India has allowed foreign individual investors to purchase stocks directly in Indian companies for the first time; previously, access to Indian stocks was only permitted through institutional investors.

India Foreign Investment Regulations and Limitations
A look at foreign investment access to the Indian market as relates to several key sectors.

India and Macau Sign Double Taxation Avoidance Agreement
To aid tax and banking-related information exchange and prevent tax evasion, India signed a double taxation avoidance agreement (DTAA) with Macau on January 1.

India and China: Engines of the Future Diamond Market
The global diamond market, driven by China and India, will grow more than 6 percent a year through 2020, more than doubling the expected 2.8 percent annual supply growth.

China Releases 12 Indian Diamond Traders
Twelve Indian diamond traders returned home to India around 2 a.m. on Friday morning after spending nearly two years in China fighting smuggling charges.

Indian Businessmen Warned to Stay Away from Yiwu, China
The Indian Embassy in Beijing issued a statement earlier this month warning Indian businessmen to stay away from China’s eastern trade hub Yiwu, a city in Zhejiang Province well-known for its massive small commodities trade, Indian media reported.

China, India Keen to Access the Arctic Circle
Despite harsh weather conditions, the Arctic is becoming a global hot spot, with non-Arctic countries like China, India and Brazil pursuing “observer” status on the Arctic Council.

India Launches US$50 Aakash Tablet PC
India has launched the initial pilot run of the Aakash tablet PC.

India Trade Statistics for April-December 2011
India’s exports grew by 25.8 percent over the period running from April to December 2011, reaching a total of US$217.6 billion.

Dezan Shira & Associates provides foreign direct investment advice and services to clients in both China and India. The firm specializes in due diligence, incorporation, tax, accounting and other business services and operates out of its offices in China, Hong Kong, India, Singapore and Vietnam. 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.