INDIA Trends and Developments Contributed by: Raj Ramachandran, Kartik Jain, Mannat Nirola and Anmol Mahajan, JSA Advocates & Solicitors
Key government policies India has increasingly adopted a policy-driven frame - work to promote manufacturing, exports, investment and innovation, with a strong focus on improving EODB. Flagship initiatives such as Make in India and Atmanirbhar Bharat Abhiyaan (ie, Self-Reliant India) were introduced to position India as a global manu - facturing hub by reducing regulatory barriers, improv - ing infrastructure, opening more sectors to investment and encouraging domestic value creation across key industries. A major incentive in this regard is the Production Linked Incentive (PLI) Scheme, introduced across sectors such as electronics, semiconductors, auto - motive, textiles, pharmaceuticals and renewable energy. It provides direct fiscal incentives based on incremental sales, generally ranging from 4% to 15%, and is intended to boost domestic manufacturing and attract large-scale investments. Export-oriented businesses benefit from Special Eco - nomic Zones (SEZs), which provide simplified opera - tional regimes. Similar benefits are available under the Export-Oriented Units (EOUs), Electronics Hardware Technology Park (EHTP), Software Technology Park (STP) and Bio-technology Park (BTP) for units export - ing their entire production. Additionally, the govern - ment has introduced the Free Trade and Warehousing Zone (FTWZ) scheme as a specialised SEZ focused on trading and warehousing infrastructure to facilitate import and export of goods and services with freedom to carry out trade transactions in free currency. Guja - rat International Finance Tec-City (GIFT City) is India’s first premier Greenfield Smart City, established to ele - vate India’s position in the global financial-services ecosystem by offering a world-class hub for cross- border trade, banking, asset management and capital market activity. Further, the Start - up India initiative supports DPIIT- recognised start-ups through income tax exemptions, labour law self-certification, IPR protection, exemp - tion from certain compliance requirements and fast- track winding up under the Insolvency and Bankruptcy Code, 2016. Reflecting the strength of this ecosystem, India added 11 new unicorns in calendar year 2025, placing it third in the global unicorn rankings.
India is increasingly positioning itself as a preferred destination for GCCs, with several states introducing dedicated GCC policies to attract multinational enter - prises seeking to establish offshore capability hubs. Setting up in India The appropriate form of entity depends on the com - mercial objective, whether the focus is long-term scale, operational flexibility, market testing, project execution or strategic collaboration. Some of the most common forms of entities which businesses often use to commence commercial operations in India can be categorised into two types: • Incorporated Entities (a) Private limited company : The preferred struc - ture for start-ups, foreign investment, fundrais - ing and scalable operations. It has a separate legal entity status, limited liability and compara - tively lighter compliance requirements than a public company. (b) Public limited company : Suitable for business - es intending to access public capital markets or operate on a significant scale. It allows wider fundraising and listing opportunities but carries significantly higher disclosure and governance obligations. (c) Limited liability partnership ( LLP ): An LLP is a hybrid structure combining partnership flex - ibility with limited liability. Commonly used for professional services, consulting businesses and closely held ventures. It functions as a distinct legal entity. (d) Section 8 company : Incorporated for charitable or not-for-profit purposes. It cannot distrib - ute its profits and must reinvest surpluses in furtherance of its stated mission. These entities offer credibility and enjoy tax incentives. They are commonly used by corporates undertaking social or philanthropic initiatives in India. (e) Wholly owned subsidiary ( WOS )/ joint venture ( JV ): For foreign investors, a WOS offers the highest degree of control over Indian opera - tions, while a JV with a local Indian partner is preferred where access to local know-how, dis - tribution channels, shared financial resources or business contacts is of higher importance. (f) One Person Company ( OPC ): An OPC is de -
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