Category — Market Entry
On June 20, India announced a number of measures to ease foreign investment in defense, civil aviation, pharmaceuticals, retail, food trade and broadcasting. The Federal Government has liberalized the FDI regime with the objective of providing a major impetus to employment and job creation in India.The government’s action opens up more than a half-dozen sectors to 100 percent foreign investment. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi. This is the second reform after the last radical changes announced in November 2015.
India’s commerce and industry minister, Nirmala Sitharaman, told reporters that “definitions will have to be simplified, and clarity will emerge.” The Washington Post quotes Amber Dubey, partner and head of aerospace and defense in India at the business consulting firm KPMG, who said that “easy terms like ‘modern technology’ will allow most leading defense companies to come in unhindered.”
The government relaxed local sourcing norms for up to three years for single-brand retail trading of products that have “cutting-edge” technology. This will likely benefit Apple which had applied for exemption from the government’s rule of the 30 percent local-sourcing norm. The company will now be able to open a chain of branded stores in India. Ikea will also benefit from these relaxed norms.
100% foreign investment in civil aviation and foreign pharmaceutical companies being allowed to invest 74 percent automatically in existing brownfield projects without government approval, are two other positive policy reforms.
“The opening up of food trading holds the most promise and is likely to generate real investment,” said Richard M. Rossow, an expert in U.S.-India policy studies at the Center for Strategic and International Studies in Washington.
June 23, 2016 No Comments
India’s Wild Tiger Special Reserve Rum has partnered with Singapore’s Tiger Air flights to retail on all routes operated by the carrier. Wild Tiger first launched in the U.K. in 2015 before expanding into UAE markets, as well as Bangalore and Mumbai travel retail, reports The Spirits Business.
Produced from a blend of molasses and cane juice, the dark amber liquid is obtained by distilling molasses spirit in columns which is then aged in American Oakwood casks which once stored Bourbon Whiskey. The resulting beverage is then blended with pure cane juice spirit achieved from double distillation in pot stills and bottled.
Just as no two tigers share the same stripes, the stripe design on each bottle of Wild Tiger is unique, making each bottle a ‘special edition’. The company donates 10% of its profits towards its own non profit Wild Tiger Foundation, which works with wildlife establishments and tiger experts to save the tiger and its habitat.
Wild Tiger founder and Indian drinks entrepreneur, Gautom Menon, said, “Given India’s strong ancient roots to the origin of rum we would like to take an Indian brand to new territories and unscaled heights. We are starting our in-flight sales journey with Tiger Air before it’s available on other leading carriers of Europe and Asia.”
June 19, 2016 No Comments
India’s Prime Minister Narendra Modi arrives in Washington today, June 6, for his seventh meeting with Barack Obama in just 24 months. He begins his visit by laying a wreath at Arlington National Cemetery.
On Tuesday, Modi will speak at the U.S. India Business Council‘s Leadership Summit, participate in a CEO Round Table and then go on to address both houses of Congress in a joint session.
“India became the top global Foreign Direct Investment destination in 2015 – attracting $63 billion – fueled by Prime Minister Modi’s ability to attract foreign investors and to build a globally competitive environment in India,” according to USIBC President Mukesh Aghi.
June 6, 2016 No Comments
Los Angeles, California-based Tinder launched its first overseas office in India which is currently its largest market in Asia. Tinder was the most downloaded dating app in India in 2015 and the company says the app attracts over 14 million swipes each day in India.
A new advertisement campaign by Tinder in India has been seen by some as a way for Tinder to change its positioning as a parent approved dating site, reports the BBC. Taru Kapoor, head of Tinder India, says the video shows the “changing dynamic” in Indian culture. “Like every generation, the youth today have adopted strong Indian values while at the same time creating new norms and rejecting the ones that do not fit anymore in a shifting world order. A mother catching a glimpse of her daughter’s Tinder notification is reflective of the future of dating in India, where youth and parents are open and honest about dating,” she says, in a statement emailed to the BBC.
Though, in reality, this may be far from becoming universal in India, yet.
May 23, 2016 No Comments
Moneycontrol reports that California-based Autodesk has signed a memorandum of understanding with the government of the western state of Maharashtra by which beginning May 5, 2016 Fusion 360, Autodesk’s cloud-based software tool for Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) will be made available for free to Micro, Small, and Medium Enterprises registered with the Department of Industries in the state, if they have an annual turnover less than $0.16 million. For those companies that exceed this amount, the software tools will be available for $30 plus taxes, with a two year validity.
Commenting on the initiative, the Chief Minister of Maharashtra, Devendra Fadnavis said, “This partnership between the Government of Maharashtra and Autodesk will create a potential for Maharashtra’s Micro, Small, and Medium Enterprises to become globally competitive and locally productive.”
Autodesk will help the enterprises that derive greater business success by using Fusion 360 to showcase their work at national and international platforms. Additionally, it will train 8000 franchisees in the state on the optimum usage of the Fusion 360 design platform.
May 12, 2016 No Comments