INDIA Trends and Developments Contributed by: Arvind Sharma, Ajoy Roy, Sanjiv Malhotra, Shahana Chatterji and J.V. Abhay, Shardul Amarchand Mangaldas & Co.
The financial markets are undergoing rapid modernisation, spurred by the influx of foreign institutional investors (FIIs) and foreign portfo - lio investors (FPIs). Regulatory liberalisation has made it easier for foreign capital to enter the market, further enhancing India’s global stand - ing. Recent reforms affecting non-convertible debentures (NCDs), external commercial bor - rowings (ECBs) and venture capital funds have broadened access to capital for businesses. The introduction of the Digital Rupee and advanced fintech regulations are also strengthening the competitiveness of India’s financial sector. India’s political stability and economic resilience, combined with a vast and growing middle class, continue to drive strong investor interest. The government’s ongoing focus on infrastructure development through the National Infrastructure Pipeline (NIP) and ambitious digital transforma - tion initiatives is accelerating growth and creat - ing a wealth of opportunities for investors. The regulatory environment is set to play a piv - otal role in shaping the investment climate in 2025. Continued reforms and initiatives aimed at improving the ease of doing business, coupled with investor-friendly policies, are expected to further boost private equity and venture capital activity. In 2025, India is not merely an emerg - ing market – it is a powerhouse of investment opportunities. With its dynamic economy, pro- business policies, and steadfast commitment to growth, India stands out as the most compelling destination for global investors seeking sustain -
mote the development of foreign trade in India. The Directorate General of Foreign Trade (DGFT) serves as the primary administrative authority under the Act and issues trade-related notifica - tions, licences and clarifications. In addition, the Customs Act, 1962 (“Customs Act”) deals with the levying and collection of cus - toms duties, import/export procedures, clearance of goods, enforcement against smuggling and adjudication. It also lays down the framework for search, seizure, confiscation and penalties. While the Customs Tariff Act, 1975 (”Customs Tariff Act”) prescribes the classification and applicable duties for imported/exported goods. Both the Customs Act and the Customs Tar - iff Act are supplemented by a comprehensive set of delegated legislation, including rules and regulations governing valuation, classification, appeals, advance rulings, bonded warehousing, export incentives and the procedural aspects of import/export operations. Trade remedies and enforcement India’s use of trade remedies – especially anti- dumping, countervailing and safeguard meas - ures – has expanded significantly in recent years, particularly against China, Vietnam, Korea, Tai - wan, Malaysia, and other low-cost exporting jurisdictions. Measures have been taken on products such as solar cells, tempered glass, coated steel, nylon filament yarn, aluminium foil, vitrified tiles and stainless-steel flat products. Anti-dumping measures India maintains an active anti-dumping regime and routinely initiates investigations to counter injurious dumping. These measures are invoked when goods are exported to India at prices lower than their normal value (ie, domestic prices in the exporting country), and such dumping causes
able, high-return opportunities. Trade Law and Trade Remedies Legal framework
The Foreign Trade (Development and Regula - tion) Act, 1992 (“FTDR Act”) empowers the Cen - tral Government to regulate, restrict, and pro -
318 CHAMBERS.COM
Powered by FlippingBook