India Country Risk Report - Business Monitor International - Industry Reports

India Country Risk Report

India Country Risk Report - Business Monitor International - Industry Reports
India Country Risk Report
Published Jul 23, 2015
55 pages — Published Jul 23, 2015
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Abstract:

In terms of tax reforms, the Indian government will eventually implement the Goods and Services Tax (GST) system, which would replace several indirect taxes such as excise duty and service tax at the central level and the value�added tax (VAT) at the state level, creating a single national taxation system. However, the proposed implementation date of April - ---- is an optimistic one. Although the GST Constitution Amendment Bill was passed by the lower house on May -, the INC (led by party president Sonia Gandhi and floor leader Mallikarjun Kharge) staged a walk out before the voting began. Given that the bill needs to be approved by a two�thirds majority in both houses of parliament, it is still likely to face opposition from the INC in the upper house, despite the United Progressive Alliance (UPA) government being the party that suggested the GST system during the FY----/-- union budget. The GST Constitution Amendment Bill was referred to a select committee on May --, and is expected to submit its report in the first week of the monsoon session slated to begin in July. ...

...core Views The Indian government led by the Bharatiya Janata Party (BJP) has initiated various reforms in its first year in office and it will continue to enact incremental reforms over the coming years. That said, their lack of majority in the Rajya Sabha, India s ----seat upper house, will remain a hurdle to the implementation of large-scale reforms. ...Headline inflation has eased significantly in India on the back of moderation in food prices, which accounts for approximately half of the consumer price inflation (CPI) basket. Following three -- basis point (bps) cuts to its repurchase (repo) rate since January ----, we expect the Reserve Bank of India (RBI) to ease interest rates by --bps to -.-- by the end of march ---- as it turns its focus towards reigniting credit growth amid a subdued inflationary environment. We expect the Indian government to eventually implement the Goods and Services Tax (GST) system over the coming years, but the proposed implementation date of April ---- is optimistic. ...The Indian rupee will remain relatively resilient as we expect the currency to be supported by increased inflows despite reserve ac- cumulation by the RBI. Over the longer-term, the INR will depreciate gradually as the central bank aims to maintain competitiveness amid higher inflation with respect to its trading partners.

...Source: BMI, Rajya Sabha Secretariat governments (particularly the BJP�led governments) to take incremental steps to amend the country s rigid labour laws over the coming years. Rajasthan (the geographically largest state in India, in which the industrial sector accounts for --.- of the state s GDP), amended four important labour laws in November ----, and similar changes are likely in other BJP�led states such as Haryana, Maharashtra and Madhya Pradesh. ...The actual total is likely to be higher as some projects were announced without values. Given the emphasis on making India an export hub, the government will continue to invest in the infrastructure sector, particularly for the rail and road sub�segments, which will in turn help to reduce logistics costs through improving the connectivity between vehicle production facilities and ports. We have pre- viously highlighted that infrastructure bottlenecks are a risk to manufacturers, which are increasing production for export (see Addressing Structural Bottlenecks Key To Export Boom , ...

  
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Document ID
1744-8786
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "India Country Risk Report" Jul 23, 2015. Alacra Store. Dec 04, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/India-Country-Risk-Report-2026-1774>
  
APA:
Business Monitor International - Industry Reports. (2015). India Country Risk Report Jul 23, 2015. New York, NY: Alacra Store. Retrieved Dec 04, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/India-Country-Risk-Report-2026-1774>
  
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