The Indian govt is attempting to force all sellers of manufactured goods to set up factories in India if they want to be able to sell their goods in the country:
http://online.wsj.com/article/SB10001424127887323482504578227583950036410.html
This looks to be another desperate stunt along the lines of their retroactive taxation stunt which they pulled some months back - and it's likely to be met with a similar response. I'm not sure that's allowed under WTO rules. Factories are something you attract by setting up favorable conditions for others to build them where you are. But as usual, the Congress schemers dream of somehow having their cake and eating it too.
1 comment:
actually it is a good idea. first invite foreign sellers to sell their stuff in desh. after sometime when they have a good market and profits, start imposing conditions on them - like manufacturing locally etc. after tasting the profits will the sellers abandon it? and ultimately for the sellers it matters not where the product is made, as long as they can make their profits. good ploy if mms can make it work.
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