Country Report

Country Report - Country Report India Elizabeth Beliakova...

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Country Report: India Elizabeth Beliakova Question 2: An overview of the business climate in India. The business dictionary defines business climate as the general economic environment comprising of the attitude of the government and lending institutions toward businesses and business activity 1 . Considering this, we looked at the business climate from the firm point of view, how easy it is to do business in India in general. For the firm, business climate is influenced by the four risks: country, cross-cultural, commercial, and financial. The first and the most influential risk is the country risk that includes political and legal stability in the country. India is on its path to liberalize its trading regulations and the structure of the economy. Dahlia Khalifa, senior strategy advisor of the World Bank-International Finance Corporation’s Doing Business project, said that India is doing a great job in liberalizing economy from state control, controlling corruption, and enforcing intellectual property laws 2 . India follows the Harmonized Commodity Description and Coding System for tariff ratings that was developed and maintained by the World Custom Organization and is used worldwide. With some exceptions, most tariffs are ad valorem and revised in each annual budget. There are only 4 prohibited importing goods: tallow fat, animal rennet, wild animals and unprocessed ivory. Together with some import restrictions India has some FDI restrictions. Many sectors of the Indian economy are still only partially open to foreign investment. The Indian government continues to prohibit or severely restrict FDI in certain politically sensitive sectors such as retail trading, railways, real estate, and professional services (postal, accountancy). At the same time, the government has liberalized computer and information 1 2 climate_10022136.html
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services, transport (road). For example, only graduates from an Indian university can qualify as professional accountants in India. Many construction projects are offered only on a non-
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Country Report - Country Report India Elizabeth Beliakova...

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