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Indian economy has been consistently showing its commitment in perusing the liberalization of policy since 1991. Despite various change of governments, the path of progress or its resolve to forge ahead continually, proves the matured governance of democracy. India among the top reformers in 2003: World Bank’s ‘Doing Business in 2005
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Fiscal : |
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| Rationalization of tax structure – both direct and indirect. |
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Progressive reduction in peak rates to be aligned
with ASEAN levels. |
| Value Added Tax introduced from 1st April 2005. |
| Fiscal Responsibility & Budget Management Act, 2003 and revenue deficit to be brought to zero by 2008 |
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Industrial Licensing : |
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Progressive movement towards delicensing and
deregulation Licensing limited to only 5 sectors
(security, public health & safety considerations
related sectors) |
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Foreign Investment : |
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| Progressive opening of economy to Foreign Direct Investor (FDI) |
| Portfolio investment regime
liberalized |
| Liberal policy on technology collaboration |
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Trade Policy : |
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| Most items on Open General License, Quantitative Restrictions lifted |
| Foreign Trade Policy augmented to double India’s share in global merchandise trade in 5 years |
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Exchange Control :
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All investments are on repatriation basis. |
| Original investment, profits and dividend can be freely repatriated. |
| Foreign investor can acquire immovable property incidental to or required for their activity. |
| Rupee made fully convertible on current account. |
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Taxation :
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| Companies incorporated in India treated as Indian companies for taxation |
| Convention on Avoidance of Double Taxation with 65 countries |
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