Doing Business in India - RSM Austria

10.3 Low Research and Development Costs
Research and development costs in India are generally very low when compared to
the costs that would be incurred in any major industrialized countries. In the present
scenario, it is possible for the foreign companies to establish 100% foreign-owned
research and development (R&D) companies in India, and import the laboratory
equipments and other facilities required for R&D. Further to encourage R&D across
all sectors of the economy, the Finance Act 2010 introduced by the Finance Ministry
of the Government of India has increased weighted deduction on expenditure
incurred on approved in-house R&D from 150% to 200%.
10.4 Financial Reliability
Repatriation of capital or dividends for investments made in India is freely allowed.
The fiscal deficit which was at 5.9% during the period 2008-09 is envisaged to
touch 6.5% of the GDP during 2009-10. Foreign exchange reserves of India which
were about US $ 252 billion on 31 March 2009 has increased to US$ 277 billion as on
26 March 2010.
India is a member of the convention of the Multilateral Investment Guarantee
Agency, which provides insurance to foreign investors against political risks.
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DOING BUSINESS IN INDIA