As announced in the budget of 2017 by Mr Arun Jaitley the Finance Minister of India, Government of India is planning to encourage more foreign investment by simplifying the procedures and relaxing the limits in various sectors in the year starting from 1st April. This endeavor is to help the country to regain its lost position as the world’s fastest growing major economy.
As announced in the budget of 2017 by Mr Arun Jaitley the Finance Minister of India, Government of India is planning to encourage more foreign investment by simplifying the procedures and relaxing the limits in various sectors in the year starting from 1st April. This endeavor is to help the country to regain its lost position as the world’s fastest growing major economy.
Now there are two routes of Foreign Investment available in India, namely automatic and Foreign Investment Promotion Board (FIPB) route. In the budget speech Finance Minister announced that they are going to remove FIPB system and planning to bring a simpler mechanism. This action is taken because of the delays contributed by FIPB in according clearance to various large scale projects, which discouraged the foreign investors to Invest in India. Automatic route is the route for foreign investment in India, in the sectors where there is no Cap for Foreign investment and in the sectors which are not reserved. All other investment proposals required FIPB approval. Now the government is simplifying for foreign companies to get permission and could request ministries to clear investment proposals faster. Economic affairs secretary Mr. Shaktikanta Das said in an interview in New Delhi on Friday confirmed the same.
India and China are renewing a push for globalization at a time when the major economies like UK and US are turning increasingly becoming protectionist countries, recently. India feels that India, China, the other Asian economies like Japan ca support each other to create jobs and maintain growth. FDI inflows to India between April-September rose 31% from a year earlier to $21.7 billion, finance minister Arun Jaitley reported to parliament a few days back. That’s still a fraction of roughly $118 billion received by China in 2016.
The Government of India is keen to lure foreign capital into India to boost the economic growth of India that’s slowed down to 7.1% in the year ending 31 March after hitting eight percent last year. The effort to boost the economic growth suffered a severe blow after the government withdrew high denomination banknotes in an economy where large portion of consumer commercial transactions are done in cash.
There are many foreign investment caps in over a dozen sectors ranging from banking to defense manufacturing which are often cited as barriers to investment in world’s second most populous country. Apple Inc. from USA has decided to begin making iPhones in India by the end of April 207 after a prolonged negotiation over the relaxation of a rule that requires single-brand retailers to source 30% of components from within India. This is expected to draw attention of the Global investors and multinational Companies to turn towards India and increase their commercial activities in India.
Ineligible Arbitrator can be challenged even in Pre- 2015 cases and at any point of time
Supreme Court of India in its recent Judgment dated 04th January 2022 pronounced by the bench consisting of Hon’ble Justices Mr M.R.Shah and Mrs Nagarathna in the case of Ellora Paper Mills held that the mandate of the arbitrator can be challenged at any point of time during the proceedings, in view of Section 12(5) read with Seventh Schedule of the 1996 Act.
The Impact of Limitation Act on MSMED Act Recovery Proceedings
In the realm of commercial disputes, the intersection of the Limitation Act, 1963, and the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, has been a subject of legal scrutiny. A landmark judgment by India's Supreme Court in the case of M/s Silpi Industries vs. Kerala State Road Transport Corporation & Anr has shed light on whether the time constraints of the Limitation Act apply to arbitration proceedings under Section 18(3) of the MSMED Act. This decision has significant implications for businesses within the MSME sector, which is a powerhouse of economic growth and innovation in India.
SUPREME COURT OF INDIA RECOGNISES ENFORCEMENT OF EMERGENCY ARBITRATOR AWARD
Prior to 2010, if a party to an international arbitration requires to get an interim order, prior to formation of the arbitral tribunal, it was left with no other option other than approaching the appropriate National Court of the Respondent or the National Court having the jurisdiction over the subject matter covered under the application for interim order.
