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Investment in India drops

Published by Steve Coleman on April 11, 2012

India's plan to retroactively tax business deals has already taken a large chunk out of foreign investment in the country in the last year.

New numbers released by the government say direct foreign investment fell by a quarter to $20.3 billion in the fiscal year that ended in March. In the previous year, business investment in the country was $27.1 billion.

As a part of last month's budget, India announced it planned to change the Income Tax Act to be retroactive to 1962 and oblige both domestic and foreign firms to pay tax on any transaction that involved an Indian asset.

Companies across the globe have said the decision could force them to reconsider the business they do in India.

 

 

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