While the governments intent to improve domestic electronics manufacturing, the damage to foreign companies selling in India is massive.
Ecommerce in India is a nascent industry and has seen heavy foreign investment in the last 3 years. However, the Government’s stance makes it difficult for them to have straight forward operations.
Here are few changes which impacts the startup space in a positive manner.
Category I AIFs enjoy certain benefits such as exemption from SEBI Insider trading regulation, exemption from lock in post listing of the invested company and tax pass through.
The Income Tax department is has reportedly laid claim to nearly $ 2.5 billion (Rs 13,000 cr) in tax money from Nokia, which has been struggling to pull its bottom line up. In the third quarter, Nokia reported a $754 million operating loss on a topline of $9.49 billion.
Misener discussed the possibility of changes to the policy, which currently does not allow them to do business in India, reports The Wall Street Journal. After intense debates in September, the Indian government had paved way for foreign investor’s to own more than 51% in multi brand retail companies in India.
It has also expressed “grave concerns” about private companies being mandated to domestically source IT products in some instances due to security reasons.
Corporate bribery is a reality in India, and foreign companies with exceptionally clean track record and image also fall victim to the culture of corruption in India, out of necessity. Payment of a “fee” to “consultants” seems to be the most common channel of financing bribes – as evidenced again in the Walmart case.
This year was a meaningful one for ecommerce in India. From the launch of Amazon’s Junglee.com to the acquisition of Letsbuy by Flipkart, the year 2012 saw consolidation, acquisition, policy changes, behavioral shift and a profound change in the e-commerce business model.
To understand how the technology landscape will shape up in the coming year, we spoke to Biswajeet Mahapatra, Research Director at Gartner. Edited excerpts.