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would also need to be considered as part of the entry strategy," said Mani.Īccording to a global survey conducted by Invesco, India is a favoured destination for debt instruments among emerging markets, particularly for sovereign wealth funds and central banks.Īdditionally, Goldman Sachs Research has projected that India will become the world's second-largest economy by 2075. Preferential trade arrangements/FTAs - both in existence and at formulation stage - sector-wise tax incentives, locational benefits etc. VS Mani, partner, tax, Deloitte, said, "It is also essential to consider the impact of customs duties on imports and GST on domestic transactions as these have a significant impact on the profitability of the entity. "In this regard, an MNC would actually holistically consider direct and indirect tax implications including central and state-level incentives to determine the projected post tax and post incentive business cash flows and arrive at ROI," said Sudhir Kapadia, senior tax partner, EY India. For any MNC, besides a host of other important factors like market opportunities, economic and political stability and rule of law, tax implications and certainty thereof are also very crucial determinants. As part of entry strategy exercise, tax planning work of the Big Four firms have witnessed significant activity. Despite the challenges faced by the private equity (PE) industry on a global scale, India stood out with robust PE-VC (private equity-venture capital) investments totalling $61.6 billion in 2022.ĭeloitte India CEO Romal Shetty recently told ET, the firm has observed a surge in enquiries from global clients of Deloitte expressing their interest in ramping up investments in India. In fiscal year 2023, India attracted significant foreign direct investments amounting to nearly $71 billion, driven by initiatives like Make in India, the PLI schemes, and companies taking a strategic China+1 approach of diversifying supply chains, solidifying India's potential as an attractive investment destination.

He added that India's positioning on the global stage continues to grow stronger - as a talent machine, a manufacturing hub, and an attractive market.