Are Foreign Investors getting fed up with India?

Pranay Bhatia, Associate partner, Economic Laws Practice says that the experience with a panel of foreign investors have been worse, “In almost all the cases, the panel endorsed the view of the assessing officer.” GAAR (general anti avoidance rules) are trying to curb the tax avoidance for structuring a business or effecting a transaction so as to minimize liability. So the foreign investors do not have to worry about the tax in our country and are willing to invest more.

The recent bad news that hit was when Standard & Poor’s cut India’s credit outlook to negative. At this Rajeev Malick, economist at CLSA Asia-Pacific Markets said, “Nobody should hold their breath for a born-again government.” “Coming from the most conservative of the rating agencies, it's a wake-up call for the government to do something meaningful soon” he continued. He also adds that the present government policy paralysis and the situation are unlikely to change.