China-India Business Update: Nov. 7

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Nov. 7 – 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 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.

The Three-Pronged Trident Strategy for Investing in Asia’s Massive Growth
As Western businesses face sluggish economies, Eurozone debt, and an American election next year, beleaguered corporates need to find fast access to markets that can provide good returns for investors. A combination of India, China, and Singapore may be a good bet.

2012 China, India and ASEAN Growth to Stimulate Foreign Investment
Foreign direct investment trends are still on course to invest in the China and Asian markets in 2012, despite an upsurge in manufacturing costs in China. Although India is set to supplant China as the nation with the highest rates of growth.

2012 China Investment, Operational and Budget Tips
The China game has changed, but for the better, and is now not so Asia exclusive as alternative destinations such as India come on-stream.

Report: India to be World’s Fastest Growing Economy After All
India will lead the global economy in real GDP growth in 2013, outpacing neighboring China, according to the Rapid Growth Market Forecast released by Ernst & Young (E&Y).

External Commercial Borrowings in Chinese Renminbi
India’s the existing external commercial borrowing policy has been revised to permit Indian companies which are in the infrastructure sector to avail of ECBs in Chinese renminbi.

India Issues Exchange Rate Circular for Overseas Currencies
India’s Ministry of Finance (Department of Revenues) issued a circular clarifying the rates of exchange for conversion of foreign currencies.

RBI relaxes Forex Facilities for Individuals
The Reserve Bank of India has further liberalized foreign exchange services for individuals under the Foreign Exchange Management Act 1999.

New PAN Forms for India’s Non-Residents
India’s Income Tax Department has initiated a separate permanent account number application form for non-residents.

100% FDI in India’s Pharmaceutical Sector to Continue
An inter-ministerial group presided over by the prime minister has decided to maintain the 100 percent foreign direct investment regime in the pharmaceuticals sector.

India Announces Special Incentives for Exporters
The government of India has announced a Rs. 900-crore package for exporters to assist them to fight with the slowdown in developed markets and rising input costs.

India Grants Approval to Buy Assets Overseas for Public Sector Units
The government of India has permitted a policy to facilitate profit-making state-run firms to obtain assets overseas.

India Wins ‘Asia’s Leading Destination’ Award
India was selected as the winner of the ‘Asia’s Leading Destination’ award for the sixth straight year at the annual World Travel Awards Asia and Australasia.

U.S. Urges WTO to Take Action on China, India Subsidies
The United States recently accused the two largest emerging economies in the world – China and India – of disregarding World Trade Organization (WTO) rules by not declaring their subsidy programs, complaining “the situation was simply intolerable.”

China, India Favorites to Mine Afghanistan
Indian and Chinese companies have emerged as the top choices in the bidding for iron ore and oil deposits in Afghanistan, according to the country’s Minister of Mines Wahidullah Shahrani.

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.