India - Partner In Growth
Welcome to the June 20, 2017  bulletin of key policy decisions and high-impact news, presented by the Embassy of India, Washington DC.
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KEY POLICY DECISIONS

PM Modi to Meet President Trump in Washington June 26
Prime Minister Narendra Modi will hold talks with President Donald Trump in Washington on June 26. This will be the first meeting between the two leaders. "Their discussions will provide a new direction for deeper bilateral engagement on issues of mutual interest and consolidation of the multi-dimensional strategic partnership between India and United States," the Indian Foreign Ministry said. 

Faster Insolvency Process for Start-ups, Small Firms
The insolvency process for start-ups and small companies can now be completed within a maximum of 135 days, thanks to new regulations from the Insolvency and Bankruptcy Board of India. The norms for fast-tracking the process have been notified under the Insolvency and Bankruptcy Code. In addition to start-ups and small companies, unlisted firms with total assets worth up to $150,000 would be eligible for fast-tracking the insolvency process.
 
Market Regulator SEBI OKs Commodities Futures Trading
The Securities and Exchange Board of India (SEBI) has laid out rules for the introduction of commodity options. "The launch of options will boost overall market participation, complement the existing futures, and make the commodities market more robust and efficient. The combination of futures and options can give market participants the benefit of price discovery of futures and simpler risk management of options," said the Indian commodity and derivatives exchange.
 
Airbnb, Maharashtra State Govt. Ink MoU
Airbnb and the State of Maharashtra Tourism Development Corporation have inked a deal where homestays in the State will be listed on the platform. This is Airbnb's third partnership with a State government in India after Gujarat and Andhra Pradesh. In a bid to promote tourism, Devendra Fadnavis, Chief Minister of Maharashtra, announced that 2017 is a "Visit Maharashtra" year. 
 
CBDT Asks Comments on Foreign Firms Draft Notification
The Government's Central Board of Direct Taxation invites comments on a draft notification regarding foreign companies said to be resident in India under Section 115JH of the Income-tax Act, 1961. The draft notification has been framed and uploaded on the website of the Income Tax Department for comments from stakeholders and the public.
 
HIGH-IMPACT NEWS
American Spectator: Modi 'Finest PM India Has Had in Many Decades'
Summarizing the sweeping reforms undertaken by Prime Minister Narendra Modi, the American Spectator, in its report card on the three years of the Modi Government, says he is the "Finest PM India Has Had in Many Decades." The American Spectator is one of America's oldest and most prominent political magazines.

 

Reserve Bank: India's Current Account Deficit Narrows in FY 2016-17
According to data furnished by the Reserve Bank of India, the current account deficit for the closing fiscal year narrowed to 0.7 percent of GDP from 1.1 percent in 2015-16 on the back of trade deficit contraction. The current account is the net difference between inflows and outflows of foreign currencies. India's trade deficit narrowed to $112 billion in 2016-17 from $130 billion in 2015-16.


Tesla Looks to Sell Electric Cars in India
Tesla CEO Elon Musk said he's in talks with the Government to sell electric cars in the country, which is the fourth-largest auto market in the world. Musk said on Twitter that he is negotiating for relief on import penalties until Tesla can build a local factory. Musk said in February he was hoping to launch in the country this summer.



Govt. Reforms Lead to Higher Tax Collection Rates
Net income tax collection through June 14 grew at a healthy 26.2 percent rate to $15.5 billion across the country from $12.3 billion a year ago. Among metro areas, the Mumbai zone registered the highest revenue collection growth during the period with a whopping growth of 138 percent to $3.4 billion.



Govt.: GST Will be Ready for July 1 Rollout
The Government has emphasized that the landmark Goods and Services Tax (GST) will roll out on July 1. The Central Board of Excise and Customs and State governments have increased their outreach program on the GST to reach everyone. The GST formations are being notified shortly. The window for migration to the GST Network has re-opened to assist remaining taxpayers. 


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