Indian corporates getting restless

August 02 2015

The Indian industry is going through restless times. The immense expectations that they had of Modi government don’t seem to be moving towards realization. On the contrary, the Central government’s attitude towards taxes and finance laws is becoming stricter. There is a provision of going to jail under a law for FERA. Laws regarding income tax, money laundering, and customs and excise are being connected directly to jail term now. Waiting for new winds of liberalization, these industrialists are now scared of the new laws. Bureaucracy and red-tapism is as big a grouse as it ever was. As a result, several Indian corporate are looking for greener pastures in foreign lands. Instead of the US, it’s London and Dubai that have emerged as their favoured destinations now. Several big corporate such as Jaypee and Essar are looking actively to sell their share of companies. Most of them are also looking at getting their successors (sons/ daughters) settle down abroad. While there were hopes that foreign investments will pour in after the change of guard at the Centre, it seems like domestic money is flowing out of the country now.

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