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Eversheds comment: Budget signals India firmly open for business

  • United Kingdom

    10-07-2014

    Commenting on India's budget for growth announced today, Parmjit Singh, head of the India group at law firm Eversheds, says:

    "The Indian Government led by Prime Minister Modi has been signalling the reforms announced today for several weeks so they do not come as a major surprise. They will be particularly welcomed by foreign companies that have an interest in the defence and insurance sectors.

    "Modi has identified the need for India to create more jobs in manufacturing. At the moment, the country has a large defence budget and a major part of it is spent with foreign defence companies that have no local manufacturing facilities. By raising the cap from an unattractive 26% to 49%, foreign defence companies will be incentivised to invest. This should lead to the creation of hundreds of thousands of jobs in the sector directly but also among the suppliers to those large defence companies. Overall, the budget announcements are a positive signal that India is now open for business and we can expect more positive news over the coming months."

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