Pre-Investment Due Diligence in India-Preview

India’s economy has been averaging a steady seven percent growth over the past few years.

Amid the declining optimism among other emerging economics, India’s outlook remains

positive. The Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government

has introduced a multitude of economic programs since 2014. Make in India remains the flagship

initiative, while all other development programs seek to complement it. The International

Monetary Fund (IMF) projects an optimistic 7.5 percent growth rate for India in the fiscal year

of 2016-2017 – up from 7.3 percent in 2015-2016.

India has replaced China as the top location for foreign direct investment (FDI) by attracting U.S.

$63 billion worth of FDI projects in 2015 with FDI increasing by 30-40 percent in the past two

years, according to Finance Minister Arjun Jaitley. However, while India represents a promising

future as an emerging market, it has various regulatory and tax issues that strongly contrast

with other emerging economies. Red tape and bureaucracy can further contribute to delays,

adding roadblocks to a company’s growth. In such a market, it is imperative for companies to

conduct due diligence to safeguard their assets and reputation.

In this issue of India Briefing Magazine, we examine issues related to pre-investment due

diligence in India. We highlight the different regulatory, tax, and socio-economic issues that

a company should be aware of before entering the Indian market. We also detail some of the

topics related to entry structures while investing in the Indian market, as well as cultural and

HR due diligence, which may differ from state to state.

Foreign companies should be quick to notice the various idiosyncrasies of India’s laws and

regulations; this India Briefing Magazine aims to prepare and guide companies to mitigate

such issues.

This Month’s Cover Art

Shampa Sircar Das

Transformation

Acrylic on canvas, 36x36

Art Konsult

+91-11-65683083

For queries regarding the content of this

magazine, please contact:

All materials and contents

Reference

India Briefing and related titles are

produced by Asia Briefing Ltd., a wholly

owned subsidiary of Dezan Shira Group.

Content is provided by Dezan Shira &

Associates. No liability may be accepted

for any of the contents of this publication.

Readers are strongly advised to seek

professional advice when actively looking

to implement suggestions made within

this publication.

Introduction