India is home to one-sixth of humanity. With a young population and a grand consumer base – complete with ethnic and linguistic diversity – it is a country with unparalleled economic potential. In March, the OECD forecasted India’s GDP to grow by 12.6% in 2021 – a figure that if realised, would return the country to being the world’s fastest growing major economy.
The country’s steady economic growth in the mid-2010s had slowed following ambitious fiscal policy – including the 2016 demonetisation and 2017’s goods and services tax (GST) implementation – though appears to have quickly rebounded through reforms supporting increased economic liberation and extended support for overseas investors. Moreover, there has been political stability, welcome incentives targeting the manufacturing sector, and a liquidity boost handed to the country’s busy micro, small and medium-sized enterprise sector.
With India’s penchant for creativity and entrepreneurship, new capabilities will emerge to overcome obstacles. As businesses, investors and taxpayers strive for prosperity, the demand for tax advice remains high.
Associating with leading firms who are closest to the action, ITR brings you an exclusive insight into some of the most important developments from the Indian tax world.
In the backdrop of an unprecedented contraction in the Indian economy caused by COVID-19, Finance Minister, Nirmala Sitharaman, presented the Union Budget for 2021-22 in February. The article from Dhruva Advisors considers how the proposals would assist in leading towards Atmanirbhar Bharat (a self-reliant India), in the light of incentives for the development of GIFT City and foreign funds.
The key provisions that investors should take into account when planning an inbound investment structure in India, is the subject of Aurtus Consulting’s article. The enactment of general anti-avoidance rules and the modification of tax treaties on account of the multilateral instrument have had a significant impact.
The article by Lakshmikumaran & Sridharan discusses how the pandemic has drastically changed the cross-border tax and transfer pricing sphere in the country. The authors stress the importance of tax administrations responding swiftly to challenges, to ensure that tax disputes and litigation do not add to the suffering.
Meanwhile, the article from KNAV explores how companies may look to target post-pandemic growth via mergers and acquisitions. The authors reflect on the evolving tax, regulatory and legal framework that businesses will need to consider.
The switch to seamlessly working in a virtual environment means that India has had to swiftly embrace technological innovation. The article from TMSL assesses how the rapid rise of technology has transformed the global tax function and generated new challenges for professionals and governments.
In addition to the chapters, ITR has spoken to practitioners and policymakers from the subcontinent about the most important career tools for the tax lawyers and chartered accountants of tomorrow. Alongside tax voices from Bangladesh, Bhutan and Nepal, Tata Consultancy Services’ global head of taxation, Renu Narvekar, discusses the importance of keeping in-sync with the changing tax landscape.
As the investment climate bounces back, India’s tax world will go from strength to strength in the coming year. We hope that you enjoy hearing from the tax experts leading the progression in our first India Special Focus.
Senior commercial editor
Senior commercial editor
Prin Shasiharan drives thought leadership with global tax advisors for ITR’s insight projects, in addition to managing contributions from partner firms. He has hosted and moderated high-level events involving eminent tax practitioners. He also manages commercial collaborations for other Euromoney brands including The Deal, Managing IP and IFLR.
Prin has experience in tax compliance, financial crime and regulatory roles, and has previously worked for international organisations including the United Nations and the Council of Europe.
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