Why people do investment? Maybe they want financial security. What is the reliable way to achieve financial security? It’s to save and invest money over a long period to have financial stability in the future. According to the typical thinking of most people, if you need more money you need to work harder. But will that pile of money be pleasurable if you do not have time to enjoy it? You can not have a clone of yours to work each time for you, so the spread of money leads to an extension of your working hours. The investment is to make your money work for you, maximizing your earning potential here are few advantages of making Investment in India in 2017.
Advantages of Investment in India
- FDI up to 100% in many areas and activities including many manufacturing activities, non-banking financial services, hospitals, private oil refineries, software development, (non-atomic) electricity generation, transmission and distribution, roads and highways, Hotel and Tourism, research and development, etc.
- Many forms of entry are allowed for a corporation depending on its requirements and needs. Different forms include entry through the creation of a Joint Ventures, Total Property Subsidiaries, Liaison Office or Representation, Project Office or Branch.
- A mature and favourable tax system with reduced customs duties and special taxes and low corporate taxes. Numerous tax exemptions or rebates depending on the sector and the geographical location of the investment provided. For example, there is a one-year fiscal holiday often for foreign investment in infrastructure projects in some backwards areas of the Northeastern and Sikkim States, units located in specified areas, 100% export-oriented projects, etc.
- India has already signed a Double Taxation Avoidance Agreement (DTAA) with 65 countries under which revenues made in India will be taxed in India only and will not be taxed again in the investor’s country of origin. Only the variation in the tax rate between the country of origin and India would be paid. This is quiet a relief for NRIs who are concerned about investment in India that is double taxed, and instead of earning some profit they will incur losses.
- Establishment of the Foreign Investment Implementation Authority (FIIA) to assist in the implementation of FDI approvals together with the formation of the Foreign Investment Promotion Board (FIPB) to evaluate FDI proposals and appointment of the Secretary Of Grievances of the Ministry of Commerce and Industry to address the complaints of potential and current investors.
- Various rules and regulations to protect intellectual property rights, such as the Trademark Law, the Patents Act, the Geographical Indicators of Property Act and the Designs Act.
- Foreign currency regulations, under the Reserve Bank of India.
- The huge availability of skilled labour, coupled with a low average age of around 25, makes India an appropriate destination for investors.
- To ensure up-to-date data on current policies and procedures related to investment in India, some easily accessible points of scale have been established. For example, the Industrial Assistance Secretariat (AIS) has been created for this purpose
Also Read About: Investment Options in India