Doing Business in India - RSM Austria

EOUs/EPZs have to achieve specified value addition norms. Apart from tax
holidays, EOUs/EPZs can import capital goods and industrial inputs free of custom
duty and are exempt from payment of Central and State sales tax. Supplies by
domestic tariff area units to EOUs/EPZs are regarded as deemed exports and are
exempt from excise duty.
Special Economic Zones: To create stimulating infrastructure facilities of
international standards in export production, Special Economic Zones (SEZ) can
now be set up in the private, public, joint sector or by state governments. Certain
EPZ have now be been converted into SEZ. Units in SEZ have comparably better
incentives from units in EPZ.
8.0 ENERGY, MINERALS AND OTHER NATURAL
RESOURCES
Energy is an essential input for economic development and improving the quality of
life. The primary source of commercial energy in India is coal, which provides about
63% of India’s commercial requirements. Nuclear and solar energy are developing,
but still have a long way to go to be truly accepted in India as a major energy
provider.
9.0 FOREIGN TRADE
The government has announced various policies with the intention of reducing the
protection of domestic industry. These policies included substantial reduction in
import licensing, decanalization of imports and exports, and lowering of tariffs.
However, international trade has not been completely freed with the primary aim of
avoiding a drain of foreign exchange reserves and to discourage the importing of
non-essential and luxury items.
Major commodities exported from India are gems, jewellery, ready-made garments,
machinery, tools, transportation equipment, manufactured metal goods, electronics,
software, cotton, leather, drugs, iron ore, marine products and tea. India’s exports
amounted to US $ 185 billion during the financial year 2008-09. India’s imports in the
2008-09 financial year were US $ 304 billion.
10.0 OTHER FACTORS
10.1 Language
The government as well as the industry conducts their activities in English, India has
the second largest English speaking population after the United States.
10.2 Trained Manpower
India has one of the largest pool of trained, scientific and technical manpower in the
world. This manpower is available very cheap when compared to the manpower
costs prevailing in developed countries.
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