Category — Manufacturing Technology

India Extends Benefits to Startups

The Government of India has broadened the definition of a startup by saying that a business not older than seven years will qualify for benefits such as reduction in patent application fee and a tax holiday, under the startup India program. In the case of startups in the biotechnology sector, the period shall be up to 10 years, the Ministry of Commerce and Industry said in a notification. “An entity shall cease to be a startup on completion of seven years from the date of its incorporation/registration, or if its turnover for any previous year exceeds $3.5 million.”

In order for a startup to avail of tax benefits it should be “working towards innovation, development or improvement of products or processes or services, or should be following a scalable business model with a high potential of employment generation or wealth creation.” Any entity formed by splitting up or by the reconstruction of a business already in existence will not be considered a startup, reports VCCircle.

Planning in a startup

“The changes are an effort to ensure ease of starting up new businesses to promote the startup ecosystem and build a nation of job creators instead of job seekers,” the government said.

The process of recognition as a startup will be through an online application made over the mobile app/portal set up by the Department of Industrial Policy and Promotion. Startups will no longer require a letter of recommendation from an incubator or an industry association for either recognition or tax benefits.

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

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

India Introduces New Medical Device Regulations

This blog post is a summary of an article that I have co-authored for MedDevice Online, regarding a 108-page notification published by Prime Minister Narendra Modi’s Ministry of Health in India, covering the regulation of the manufacture, sale, and possible recall of virtually all kinds of medical devices, whether imported or domestic.

Key Takeaways:

  • Device licenses now will be granted in perpetuity, not just for three-year terms.
  • The manufacturer simply has to pay a renewal fee every five years if the product still is being marketed.
  • For imported devices, the approval or rejection will take a predictable maximum of nine months; device registration will automatically imply an import license, without the need to wait an additional three months for the import license.
  • Multiple devices produced at the same factory can now be included in a single application, and the application must be filed completely online.
  • There is a proactive time commitment in the regulations. If the regulatory authority fails to complete the process within the specified time, a license shall be “deemed” to have been approved; this is a novel concept in Indian bureaucracy.

Professional companies from both India and the West, overall welcome the implementation of standards-based design and manufacture of devices, and general manager of Bloomington, Indiana-based Cook Medical in Chennai, Vijayan Govindaraman, calls the new rules “a positive step by the government to a long-standing demand by industry to frame separate regulations for medical devices.”

Blood pressure monitor

Both my co-author Rajnish Rohatgi and I think that device companies and patient advocates have much to celebrate. We expect that the Indian government will encourage foreign companies to leverage local manufacturing opportunities. To that end, it may make sense for Western companies to start looking at greenfield manufacturing in India; others may wish to buy and bolster small and medium-sized Indian companies, who will appreciate the global expertise in building up their own capabilities.

For specific questions about how the regulation may affect your business or how you can take advantage of the opportunities offered by them, send a note via the Contact Us page at Amritt.

 

May 17, 2017   No Comments