Category — Foreign Companies in India

Apple Looks to Expand in India

India has offered to allow Apple Inc., to import mobile handset components intended for use in local manufacturing tax free; but these concessions will be subject to the condition of increasing local value addition over a period of time.

Aruna Sundararajan, Secretary at the Ministry of Electronics and IT told Reuters, “We have offered them tax exemptions on those components which could not be manufactured in India.” She added that Apple will need to increase the local manufacturing component gradually in phases of 3, 5, 7, and 10 years as the local capacity builds up.

In mid-May, Apple‘s OEM partner, Wistron, started assembling the iPhone SE in Bangalore, India, in order to lower the price point and make it more affordable to Indian consumers.

Ravi Shankar Prasad, the federal minister for Electronics and IT said that Apple had approached the Indian government to expand Wistron’s facilities in Bangalore, and that government officials were in touch with Apple for expanding the facility and setting up new plants.

apple-ipad_1

May 26, 2017   No Comments

Swedes Consider Business Climate in India as Favorable

The embassy of Sweden in India and the Swedish Chamber of Commerce released the 9th edition of their Business Climate Survey report for India, wherein 65 percent (a massive jump from the only 15 percent in 2013) of Swedish multinationals put India as a favorable destination to do business. This survey reflects the views of some of the biggest Swedish companies such as  Ericsson, IKEA, Volvo,  Scania, and Electrolux .•

NDTV reports that among the 160 of the 170 companies in India that took part in the survey, 64 percent of them claimed to be satisfied to be doing business in India; 80 per cent of the companies claimed they would be going ahead with their India investment plan as usual. “There are some challenges as well like the bureaucracy. Companies find it difficult to get licenses easily,” Anne Linde, Minister for EU Affairs and Trade, told the publication.

Part of a questionnaire for surveying the business climate in India

The Economic Times says that the key findings in the Business Climate Survey 2016/17 include:

  • The direct and indirect jobs created across the country by Swedish companies in India shows an increase of 20% since 2014
  • Goods and Services Tax matters: 3 out of 4 companies say the reform contributed positively to the business climate in India
  • 45 Swedish companies are a part of “Make in India”
  • 8 out of 10 companies invested as per plans or more last year
  • 8 out of 10 say they will increase their investments in the coming years
  • 7 out of 10 companies are involved in skills development, either through business operations or community development programs

 

May 25, 2017   No Comments

U.S., India Collaborate on Building Radar Satellite

NASA and India’s ISRO – the Indian Space Research Organization – will jointly build a satellite called NISAR or the NASA-ISRO Synthetic Aperture Radar satellite which could be the world’s most expensive Earth imaging satellite, and will cost the two countries over 1.5 billion dollars.

In a meeting in Toronto, NASA Administrator Charles Bolden and K.Radhakrishnan, Chairman ISRO, signed two documents to launch the NASA-ISRO satellite mission.

“NISAR is the first big collaboration between NASA and ISRO, certainly on radar  but just in general as well. This is two frequency radar:  it is an L-band 24 centimeter  and S-band 13 centimeter. S-band is being built by ISRO and L-band by NASA. It is a major collaboration both in terms of the technical building of the satellite as well as working together across the Pacific between India and U.S.,” said Paul A. Rosen, a scientist working on the NISAR satellite project.

The NISAR satellite will be launched in 2021 from India using ISRO’s  Geo-synchronous Satellite Launch Vehicle, reports NDTV.

US and India Flags

May 25, 2017   No Comments

U.S.’s Ebix Acquires Majority Stake in India’s ItzCash

Atlanta, GA-based Ebix Inc., a maker of software for the insurance and financial services industry, acquired a majority stake in Indian payments services firm ItzCash for approximately $124 million. ItzCash’s earlier investors, Matrix Partners, Intel Capital and Lightspeed Venture Partners, exited the company for returns between 3X – 5X, leaving Essel Group with a 20% stake.

Founded in 2006, ItzCash, started with digital payments, and expanded into remittances, financial services, corporate solutions, point of sale (PoS) terminals and payment gateway. The company processes 600,000 transactions per day. In 2016-17, it processed payments worth $1.6 billion through its network, reports the Livemint.

ItzCash Logo

“With the youngest tech-savvy society, the largest middle class, a 1.3 billion population, a country committed to going digital and a growth rate of 7% plus, India is an emerging economic superpower today. We are big believers in the power of exchanges and thus have been keen to take an early position in India in terms of powering financial and insurance exchanges,” said Robin Raina, chairman and chief executive of Ebix.

May 25, 2017   No Comments

India Abolishes Foreign Investment Advisory Body

India’s Federal Government approved dismantling the 25-year old Foreign Investment Promotion Board,  in order to streamline  the flow of foreign capital into the country.
By abolishing the Foreign Investment Promotion Board India’s minister for finance, Arun Jaitley, removed a layer of decision-making for foreign direct investment approvals in 11 sectors that needed prior government approval. FDI proposals can now be cleared by the ministries and departments concerned in these sectors. In sectors where the government has security concerns, the proposals will additionally be vetted by the Home Ministry.
According to the strategic partnership policy, the four sub-sectors now open to the private sector will create a pool of six Indian firms that will be accorded special status. They will seek to make submarines for the Navy, a single-engine fighter for the air force, and helicopters and armored vehicles for the army. Once the pool is created, the companies will be given the opportunity to bid for defense production orders, expected to be worth over $20 billion. reports the Economic Times.

The Department of Industrial Policy and Promotion will notify the standard operating procedure for processing applications in the next 60 days.

 Return on Investment

May 24, 2017   No Comments