1. India can attract significant FDI if it sorts out tax issues: Nomura

India can attract significant FDI if it sorts out tax issues: Nomura

Japanese investors remain "very positive" on India, saying there is a big opportunity for placing...

By: | Singapore | Updated: March 29, 2015 10:28 AM
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The Japanese also view India more positively as compared to other investment-seeking Asian markets. (Reuters)

Japanese investors remain “very positive” on India, saying there is a big opportunity for placing “significant” Foreign Direct Investment (FDI) if the country can sort out some of its tax issues, a top official of Japan’s financial services major Nomura has said.

Alastair Newton, Managing Director for global market research and Senior Political Analyst at Nomura International Inc., also highlighted investors’ concerns about retrospective taxes such as the Vodafone case, and among other, the General Anti Avoidance Rule (GAAR), which has been postponed for now.

“I do think there is a big opportunity in India (but) if it can get some of the tax issues sorted out to attract significant Foreign Direct Investment (FDI) investment from Japan,” he said at a media briefing here yesterday.

The Japanese also view India more positively as compared to other investment-seeking Asian markets, Newton said, citing the political instability in Thailand, economic growth slowing down in China and people’s reaction to some of the foreign- invested plant and factories in Vietnam as the reason for it.

“If you look at the offering of other nations in Asia, it is not any more attractive as it used to be. I think India has great opportunities to take on some of that investment if you can get it right,” he said.

Newton said the Japanese investors have confidence in the current dispensation.

“Senior management in major Japanese corporations, who already know (Prime Minister Narendra) Modi well and have invested in Gujarat, remain very positive over prospects in India over time,” he said.

“Headline grabbing retrospective tax bills slammed on big companies is a big disincentive to investment in India,” Newton said.

He also shared his observation and comments from other investors, including fund managers who said they would like to do more business in India but the bureaucracy is making it tough.

He, however, said he was hopeful that there would be legislations passed to settle these issues.

  1. M
    Mangoman
    Mar 28, 2015 at 9:28 pm
    Whichever anese investor feels uncomfortable about India should stay away!! We need to remember one basic fact - anese investors will not come here for charity, but for profit!! Jaitley has already cut corporate tax-rate to 25%, which has increased incentives for investors! Jaitley is also doing away with archaic laws and cutting the maze of permits that manufacturers require to start operations!! Next on the agenda should be easing of labour laws!! The govt. should loosen manufacturing norms and tighten outside fund flows into the country!! I mean suddenly Google, a shadow company of US NSA/CIA, has suddenly floated Google Capital and is picking up stake in Indian start-ups left, right and center, which is a huge, huge security risk!! The govt. must make strictly regulate such funding; I'm not sure if SEBI is cut for the job!!
    Reply
    1. S
      Sadasivan
      Mar 28, 2015 at 7:56 pm
      The developed economies are in huge Debt today due to these very same polices,as Revenue is local and profit is international[Global,as the Globalists boast,due to less tax and deregulation,the so-called 'structural reforms'[read anti-National and pro-Globalist policies] Greece and even in the USA Homelessness is very common now. Loot India using G 20,enslave her making her citizens poorer and poorer.
      Reply
      1. S
        SC
        Mar 28, 2015 at 9:16 pm
        At present, FDI is being sought without having got essed the ills of payment of royalty and technical fees. In some of the cases, payment of Royalty including technical fees is more than the FDI brought in. FDI comes only once while payment of royalty or technical fees is every year. Government is following the policy of "Rinam Kritva Ghratam Pivet) Drink ghee even after taking loans after loans and become full of debts.
        Reply

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