Mumbai: Foreign portfolio investors (FPIs) worldwide believe that India is an attractive investment destination among emerging markets with a favourable trade and settlement cycle, moderate tax rates and adequate investment limits. Among others, these are some of the key findings of the PwC’s Foreign Portfolio Investor Survey 2016-17 – India Moving in the right direction.
The optimism towards investing in India is evident from portfolio investments in debt and equity in the country. FPIs have being net buyers in the Indian stock market in FY 2016-17 and investments till July 2016 this year have been 29,918 crore INR.
Gautam Mehra, Leader – Tax and Regulatory, PwC India said, “One of the key takeaways from the Survey is that investor opinion about the Indian tax and regulatory environment is slowly moving in a favourable direction. The government has given a thrust to the establishment of a long-term, stable, predictable and non-adversarial tax regime to improve the ease of doing business in India. All these factors will benefit the climate for investing into India.”
Suresh Swamy, Partner – Tax and Regulatory, PwC India said, “FPIs have appreciated the proactive approach adopted by the Government last year. They have also given a clear indication on areas they will like more clarity on. We hope this report will trigger meaningful conversations between all stakeholders.”
The survey, which gathered views from over 200 participants from across the globe, indicates that investors were satisfied with the tax rates on capital gains, outcomes of the Minimum Alternate Tax (MAT) issue and tax audits, the regulator’s response to queries and the trade and settlement process. However, areas that need attention are GAAR, offshore transfer, safe harbour provisions and the India-Mauritius tax treaty.
Some Key highlights of the report are:
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
In India, PwC has offices in these cities: Ahmedabad, Bangalore, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune. For more information about PwC India's service offerings, visit www.pwc.com/in
PwC refers to the PwC International network and/or one or more of its member firms, each of which is a separate, independent and distinct legal entity in separate lines of service. Please see www.pwc.com/structure for further details.
©2016 PwC. All rights reserved