India - Partner In Growth
Welcome to the October 29, 2015 bulletin of key policy decisions and high-impact news from India, presented by the Embassy of India, in Washington D.C.
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Wind Turbine Parts, Components Exempted from Excise Duty 
The Government has exempted parts and components used in wind operated electricity generators, including towers, rotors and blades from excise duty, a move aimed at promoting clean energy. 

Finance Ministry Promises to Resolve Tax Concerns of Foreign Portfolio Investors 
The Government has promised to address tax concerns of foreign portfolio investors (FPIs) aimed at helping them to set up permanent establishment in the country. The Finance Ministry in a bid to ease doing business in financial market met more than two dozen FPIs including Citibank, Deutsche Bank, Fidelity, Goldman Sachs and BlackRock, and sought their views on various issues related to the sector. 


Govt. Amends Rules to Reduce Transfer Pricing Disputes
In a positive signal to investors, the Government has amended rules for determination of Arm's Length Price (ALP) with an aim to provide clarity in calculating prices in transfer pricing cases and reduce litigation. The new regime will be applicable for computation of ALP of international transactions and specified domestic transactions undertaken on or after April 1, 2014.

Importers, Exporters Must Use Digital Signatures from Jan. 1
Starting Jan. 1, 2016, importers and exporters must use digital signatures to file documents, the Central Board of Excise and Customs has said. Further, wherever the customs process documents are digitally signed, the customs will not insist on the user to physically sign the documents, it said. 

Urban Development Minister: Single Window Clearance Coming Soon for Construction   
The Government aims to finalize benchmarks for streamlining construction approvals and institute single window clearance soon, Union Urban Development Minister Venkaiah Naidu said. The Ministries of Civil Aviation, Environment & Forests and Climate Change, Housing and Urban Poverty Alleviation, Civil Aviation, Culture, Defense and Consumer Affairs will participate in the deliberations during a meeting scheduled to discuss this issue.

India Among Top 10 Acquirers in U.S. This Year
India is among the top 10 acquirers in the U.S. market this year with 16 deals valued at $1.7 billion, says Baker & McKenzie. The majority of these deals were in the pharma sector, with six transactions totaling $1.5 billion, as Indian companies seek to increase their scale in the U.S. generics market, said the report.

India is the top trade facilitation performer in the South Asian sub-region while Singapore and South Korea lead East Asia in moving goods effectively, according to the United Nations Economic and Social Commission for Asia and Pacific (ESCAP) Report.

Aviation May be $250 Billion Industry by 2025
A Tata Vistara Capra report said that the Indian aviation industry has the potential to grow from its current level of $23-25 billion to $250 billion by 2025. The report has identified several measures that would lead to a three-fold increase in domestic air travel and contribute up to 5 percent of the country's GDP. 

IMF: India Better Placed Among Emerging Markets to Handle Global Slowdown
India is better placed among emerging markets to tackle risks arising out of a global economic slowdown, a top IMF official said. "India is big in the global picture. We are bullish on the economy," said Thomas Richardson, IMF Senior Resident Representative for India, Nepal and Bhutan. 

Remittances to India are projected to increase by 2.5 percent this year, the World Bank said in its latest report, even as weak economies in Europe, especially Russia, are slowing the growth of remittance flows. In 2014, India is estimated to have received remittances worth $70.3 billion.