ppt presentation of indian laws for european investors

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LABOUR LAWS AND LEGALENVIRONMENT IN INDIA FOR

EUROPEAN INVESTORS

09/05/2011

PARIS STAR BUSINESS SCHOOL

Muppala Sekhar reddySaha Rajkumar

Rachakonda raghavendra rao



Introduction

This project explains about the foreign direct

investments and legal environments in India. It

also focuses on the policy of the Indiangovernment and European Union which attracts

the companies of either sides to start and run

business in Europe and India vise-versa. It also

contains the progress of Free Trade Agreement

between India and European Union and point out

the obstacles of this agreement .



What is it about

Labour Laws and Social Security System

Legal Environments

Business Regulations

FDI Policy

India for European Investors

Free Trade Agreement between EU and India



Labour Laws and Social Security

System

Labour Laws For the sake of the employees

interest,India has several acts which are applicable in

all sectors.Labour Laws fall under the following acts:

1. Trade Unions Act

2. Wages Regulation Act

3. Act for Payments4. Working Conditions Acts

5. Temporary,Permanent and Contract Employees



Legal Environment in India

The legal environment in India is as follows the rules of

WTO TRIPS(trade related aspects of intellectual property

rights).

Intellectual property protection follow under the following

Patents

Trade Marks

Copy rights



Business Regulation

The business regulatory environment covers all aspects of

trade, industrial activity, taxes, foreign exchange, intellectual

property and social security.Business regulation broadly applies to the following aspects:

Foreign exchange regulations

Industrial licensing regulations

Trade regulationsImport restrictions

Export restriction



FDI Policy

Why invest in India

Impressive growth rate: 8 % p.a.

Competitive manufacturing hubs Emerging knowledge industries

IT, Pharma, Biotech, R&D

Improving infrastructure an area of opportunity

Good Banking & Financial Infrastructure.



FDI Policy

Progressive Trade and investment policy

Strong democratic set up

Independent judiciary

Technical education and infrastructure

Good law & order

English widely understood



FDI Policy

Investing in India

Automatic Route Prior Permission

General ruleInform RBI within 30 days of

inflow/issue of shares Pricing: FEMA Regulations

Unlisted ± CCIListed ± SEBI

Cap of Rs. 1200 Crore(Approx : USD $268 million)

By exception

Approval of ForeignInvestment Promotion

Board needed.Decision generally within4-6 weeks



FDI Policy

Liaison OfficePromotion of business interest; spreadingawareness of companys products; exploreopportunities; work as channel of communicationetc.

Cannot carry on any commercial, trading orindustrial activity or earn any income in India Is

required to maintain itself out of inwardremittances received from abroad through normalbanking channels.



FDI Policy

Branch officeRepresent the business interest of foreign company

For the purpose of execution of the Project

Permissible activities for a Branch OfficeExport/Import of goodsProfessional or Consultancy ServicesCarrying out research work in which the parentcompany is engaged

Promoting technical or financial collaborationsbetween Indian Companies and parent or overseas groupcompanies



FDI PolicyForeign investment is not permitted in the following areas:

Atomic energy

Agriculture

Postal services

Plantation

Retail trading (except single brand)

Mining services

Real estate business



FDI PolicyExit issues

Transfer of shares from non-resident to non-residentdoes not require RBI approval for pricing

Transfer of shares from non-resident to resident doesnot require any FIPB Approval, though RBI approval isrequired for pricing

Pricing as per FEMA listed and unlisted securities

RBI permission not required if sale through StockExchange

�Mauritius Route: Capital Gain Advantage



European Investors in India

India is the 9th largest import partner of EU and 8th

largest partner of export and trade partner.

EU is the largest trade partner of India with 20% of

its trade with world.

Europe exported 26 billions euro of goods andservices in 2009. and imports were 25 billions euro.



0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

Amount (in USD)

Amount (in USD)

Top European Investors in India



EU and India Free Trade Agreement

Why is it necessary?

�Increase in bilateral trade

�Enhance the Investment

�Eliminate the tariffs

�Provide opportunities for potential exporters

�Promote sustainable development

�Bringing people together




Facts & Figures :

�EU-India Summit launched a High Level

Trade Group (HLTG) in 2005�Start Negotiation in 2007

�Biggest Indian Partner(20% shares)

�Big Indian Investor(10.9 bn )�FDI Flows to India ( About 65% of all)

�FDI Flows to EU (9.5 bn )




Main Obstacles in FTA between EU and India :

�Intellectual Property Rights

�DATA Exclusivity in Pharamaceutical Sector

�Domestic Political Hassles

�Unbridgeable Expectation Gap

�Challenges in area of comparative advantages



Conclusion

Efforts should be made by both side:

�Better bilateral & strategic relation with EU &

India

�Should remove obstacles as soon as possible�Allow strategic partnership in infrastructurefrom both sides

�Liberalize more Financial policy�Review FDI Policy towards Agricultural &

Industrial sector



Conclusion

�Need to conduct internal consultations

�Negotiations should be based on trade & financial

matter

�More focus on sustainable development



Thank you

Documents

ppt presentation of indian laws for european investors