Blog

In India, Micro, Small, and Medium Enterprises (MSMEs) refer to businesses that operate within defined investment and turnover limits. They account for a substantial share of India’s working economy and contribute meaningfully beyond headline growth metrics, supporting employment creation, reinforcing domestic supply chains, and promoting regional industrial development. For international businesses, MSMEs frequently form the backbone of vendor ecosystems, contract manufacturing arrangements, service delivery networks, and last-mile distribution models. MSME status is also important because India’s regulatory and institutional framework often differentiates MSMEs for policy support and access-related benefits, particularly in areas such as credit facilitation, procurement participation, and payment protection mechanisms (subject to scheme-specific conditions and eligibility). This is where MSME registration becomes relevant. MSME registration, formally referred to as Udyam Registration, is the Government of India’s online recognition system that categorises a business as a Micro, Small, or Medium Enterprise based on prescribed financial parameters. Upon registration, an enterprise is issued a Udyam Registration Number along with a digital certificate, which is commonly accepted as proof of MSME status across banking, vendor onboarding, and government-facing ecosystems. MSME Eligibility and Classification Criteria MSME classification in India follows a composite methodology based on both: Investment in plant and machinery or equipment, and Annual turnover As per the updated classification limits notified by the relevant ministry and reflected in current guidance, the revised thresholds effective 1 April 2025 are as follows: Enterprise Category Maximum Investment Maximum Annual Turnover Micro Up to ₹2.5 crore Up to ₹10 crore Small Up to ₹25 crore Up to ₹100 crore Medium Up to ₹125 crore Up to ₹500 crore Classification Rule: If an enterprise exceeds the threshold under either the investment criterion or the turnover criterion, it is classified under the higher category. Key Benefits of MSME/Udyam Registration Udyam Registration functions as a widely recognised MSME credential in India. While registration does not automatically confer all incentives, it serves as a foundational requirement for eligibility. Engaging company registration services in India can further support compliance, particularly within banking and government-linked ecosystems.  Key benefits generally associated with MSME/Udyam status include: 1) Stronger access to MSME-focused finance Banks and financial institutions often recognise registered MSMEs within the MSME lending framework, which can support access to MSME-oriented financial products and scheme-linked credit facilitation, subject to internal lending policies and eligibility norms. 2) A statutory framework to address delayed payments (for Micro & Small Enterprises) India’s MSME legal framework provides mechanisms aimed at protecting Micro and Small Enterprises from delayed payments. These include prescribed payment timelines, interest provisions, and dispute resolution through designated facilitation mechanisms. 3) Improved access to government procurement ecosystems Government procurement policies mandate a specified share of procurement from Micro and Small Enterprises, along with defined sub-targets under the broader objective. Udyam Registration is commonly relied upon as proof of MSME status in such procurement processes. 4) Scheme eligibility and cost-support opportunities MSME recognition may enable participation in various government programmes focused on competitiveness, including technology and quality enhancement, market access initiatives, and other MSME-focused schemes, subject to scheme-specific eligibility criteria. 5) Practical credibility in onboarding and vendor qualification Since the Udyam certificate is issued digitally and includes a dynamic QR code, it is often accepted during vendor onboarding and institutional due diligence as standard evidence of MSME status. A Step-by-Step Guide to the MSME Registration Process The MSME/Udyam registration process is designed to be fully online, paperless, and streamlined. Official guidance clearly states that no private agency is authorised to carry out MSME registration outside the government portal or designated single-window systems. Step 1: Compile Key Information for Udyam Filing Before starting the Udyam Registration process, ensure that the following information is readily available: Aadhaar of the relevant individual, depending on the enterprise structure (proprietor, partner, director, or authorised signatory) PAN of the applicant or entity, as applicable GSTIN (Goods and Services Tax Identification Number), only where GST registration is mandatory under applicable law Entity details, including legal name, registered address, bank information, business activity and National Industrial Classification (NIC) code, employee strength, and investment and turnover figures As a practical consideration, the Udyam framework is designed to automatically retrieve and validate investment and turnover data through PAN- and GST-linked government databases, wherever such data is available. Step 2: Access the Official Udyam Registration Portal Registration must be completed exclusively through the Government of India portal. The official portal explicitly cautions against unauthorised platforms and confirms that the registration process is free of charge. Step 3: Complete the Online Udyam Application Form The application process generally includes: Aadhaar-based OTP verification Selection of organisation type and PAN validation Completion of enterprise details (business activity/NIC code, operational information, investment and turnover), followed by declaration and final submission Step 4: Confirmation and Certificate Issuance Upon successful submission: A permanent Udyam Registration Number is generated An online Udyam Registration Certificate is issued, featuring a dynamic QR code No renewal is required, as per current portal guidance Compliance note: Official guidance specifies that an enterprise should not obtain more than one Udyam Registration. However, multiple business activities (manufacturing, services, or both) can be covered under a single registration. Documents Required for MSME Registration Udyam Registration follows a paperless model, and the online process typically does not require document uploads. However, accurate identifiers and business details must be available, including: Aadhaar number (as applicable to the entity structure) PAN GSTIN (where applicable or mandatory) Bank account details and business address NIC code and business activity information Employee strength Investment and turnover data Conclusion Udyam Registration is a practical and low-friction compliance step that provides an enterprise with a government-recognised MSME identity. This recognition is supported by a permanent registration number and a QR-verifiable digital certificate, with no renewal requirement under the current framework. For international stakeholders assessing India operations, the commercial relevance is clear: MSME recognition can enhance how an India-registered entity is positioned in banking discussions, vendor onboarding processes, and government-linked procurement environments, while also enabling access to MSME-focused schemes where eligibility criteria are satisfied. A carefully prepared registration, supported by accurate PAN- and … Read more

In India, the existence of a corporate entity can be terminated either through formal winding up or by having its name struck off from the register maintained by the Registrar of Companies (ROC). The strike-off method is primarily utilised for closing inactive or non-operational entities. This procedure is regulated by the Companies Act, 2013, alongside the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016. While entity incorporation in India is relatively straightforward, the exit or closure process can occasionally be complex. Two distinct modes for name strike-off are prescribed by law: Strike Off by the Registrar of Companies (ROC) – Initiated by the regulator for non-compliant or inactive companies. Voluntary Strike Off by the Company – Initiated by the company itself, contingent upon fulfilling specific eligibility and compliance criteria. Legal Framework for Strike-Off Applicable Act: Sections 248 through 252 of the Companies Act, 2013 (‘the Act’). Applicable Rules: Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016. Name removal may be executed by the Regulator or voluntarily by the Company. ROC-Initiated Strike Off (Regulator-Driven Closure) A notice for the strike-off of a company’s name shall be issued by the Registrar of Companies (ROC) on the following grounds: If business has not been commenced within one year of incorporation; or If business or operations have not been carried on for a period of two immediately preceding financial years without an application being made for dormant status under Section 455 of the Act. Voluntary Strike Off by the Company (Company-Initiated Closure) An application for striking off the name can be made by the Company if the following criteria are fulfilled: The entity is not a listed company. It has not been delisted due to non-compliance with listing regulations. It is not classified as a vanishing company. It has not been subject to inspection or investigation. No prosecution is pending against the company, nor is any application for compounding of offences pending. No default has been made in the repayment of public deposits, etc. There are no charges pending satisfaction. It is not registered under Section 8 of the Companies Act, 2013, or Section 25 of the Companies Act, 1956. The Company has been inactive for at least 2 years. No bank account exists as of the date the application is filed with the ROC. Assets and liabilities are nil as of the application filing date. No dues are pending towards Income Tax, Banks, Financial Institutions, or other Central/State Government/local authorities. Annual Returns have been filed up to the date business was last carried out. Restrictions on Voluntary Strike Off: When an Application Cannot Be Made An application for name removal shall not be made if, at any time in the previous three months, the company has: Changed its name or relocated its Registered Office from one state to another. Disposed of property or rights held by it for value. Engaged in any activity other than that which is necessary for making an application under Section 248, statutory compliance, or concluding affairs. Filed an application to the Tribunal for sanctioning a compromise or arrangement scheme which is currently pending. Been wound up under Chapter XX, whether voluntarily, by the Tribunal, or under the IBC. Process for Voluntary Strike Off: Step-by-Step Overview An application may be filed in E-Form STK-2 with a fee of Rs. 10,000 to the ROC for name removal on grounds specified in Section 248(1). Upon receipt, a public notice shall be caused to be issued by the Registrar. The E-Form must be accompanied by a No Objection Certificate (NOC) from the sector- specific regulator, if applicable, alongside the following documents: Indemnity bond duly notarized by every director in Form STK 3. An affidavit in Form STK 4 by every director. A copy of the board resolution approving the strike-off application. A copy of the special resolution certified by each director or consent of 75% of members as of the application date. A statement of accounts detailing assets and liabilities, made up to a day not more than 30 days prior to the application date, certified by a Chartered Accountant. Tax Considerations Capital Gains: Selling assets prior to strike-off could attract capital gains taxation. Loss Set-off: Losses arising from the extinguishment of shares upon strike-off may be available against other capital gains, subject to conditions. Timeline for Strike-Off Process The strike-off process generally requires approximately 6 months to complete. This method offers a streamlined and legally recognized avenue for non-operational companies to exit the corporate framework. By adhering to prescribed procedures under the Companies Act, 2013, statutory obligations are met, liabilities settled, and records formally closed. Careful attention to eligibility and tax considerations is essential to avoid complications. Winding Up (Liquidation) of an Indian Company Winding up is the formal process whereby a company permanently ceases operations, settles outstanding debts, and distributes remaining assets to shareholders. Principally governed by the Insolvency and Bankruptcy Code, 2016 (IBC), with limited “residual” matters under the Companies Act, 2013, this ensures affairs are concluded in a compliant manner. A company may opt for liquidation for reasons such as voluntary closure , financial difficulties , or lack of business viability. Depending on circumstances: Voluntary liquidation under Section 59 of the IBC can be initiated by a solvent corporate person with no defaults. Liquidation by NCLT order arises under Section 33 of the IBC (typically following a failed CIRP). “Winding-up” under the Companies Act, 2013 acts as a separate route petition able by specific parties in limited scenarios. Initiating the Liquidation Process Under the IBC, the Corporate Insolvency Resolution Process (CIRP) not liquidation is filed for by creditors or the corporate applicant before the NCLT. Liquidation typically follows only upon an NCLT order under Section 33. Conversely, eligible parties may petition for winding-up before the NCLT under the separate route of the Companies Act, 2013. Voluntary Liquidation in India (Solvent Company Closure) Voluntary liquidation enables a solvent company to wind up operations in an orderly fashion. It … Read more

India’s Goods and Services Tax (GST) landscape continues to evolve as the government focuses on greater transparency, stronger verification systems, and efficient digital compliance. One of the most significant reforms is the revised GST registration framework that became operational on 1 November 2025. These updates aim to improve applicant verification, reduce the risk of fraudulent GSTIN creation, and provide faster, streamlined processing for legitimate businesses through enhanced data-based checks and simplified online workflows. For international businesses or foreign-owned entities planning to enter or expand their footprint in India, understanding these updates is essential. The revised framework introduces new application forms, additional authentication requirements, and quicker approval mechanisms—reshaping how applicants obtain their GST Identification Number (GSTIN). This blog offers a clear, structured overview of the changes to help global organisations navigate the updated system confidently. What Has Changed in GST Registration from 1 November 2025? 1. Strengthened Aadhaar and PAN-Based Verification The upgraded registration process places increased emphasis on Aadhaar and PAN validation: Proprietors, partners, directors, and authorised signatories must undergo Aadhaar-based OTP or biometric verification, especially when applying through the simplified route. Companies, LLPs, and firms must complete PAN authentication, which is cross-verified with their income tax data, including the PAN of all key persons. This enhanced identification step ensures that GSTINs are issued only after proper KYC checks, helping improve system reliability and reduce misuse. 2. Faster Approval Timelines (Three Working Days) Under the revised rules, GST registration can be granted within three working days, provided: Aadhaar authentication is successfully completed for all relevant individuals. The risk engine does not flag the application as high-risk. All information and documents are complete and consistent. This expedited approval is especially beneficial for low-risk applicants, including those applying through Rule 14A, where the monthly output GST liability on supplies to registered persons does not exceed ₹2.5 lakh. However, applications marked as high-risk or requiring further scrutiny will continue through the longer verification route, which may include notices or physical inspection. For foreign-owned businesses, a well-prepared application aligned with the risk parameters ensures a predictable and timely registration experience. 3. Optional Simplified Registration for Small Taxpayers (Rule 14A) Rule 14A introduces a simplified, optional registration path designed for small taxpayers: It applies to applicants whose monthly output GST liability on supplies to registered persons does not exceed ₹2.5 lakh, including all components such as CGST, SGST/UTGST, IGST, and compensation cess. Aadhaar authentication is mandatory (except for exempt persons under Section 25(6D)), and only one registration per PAN per State/UT is permitted under this rule. Once Aadhaar is verified and risk checks are cleared, registration is issued digitally within three working days. Taxpayers may exit the Rule 14A option later by filing FORM GST REG-32, after which the proper officer will process the request (e.g., through FORM GST REG-33) after confirming return filings and ensuring no pending proceedings under Section 29. This route is ideal for small B2B service providers, new start-ups, and professional firms looking for a quick and fully electronic registration experience. Why GST Registration Is Crucial for Doing Business in India A GSTIN is more than a compliance requirement it enables smooth and credible business operations. With a valid GST registration, businesses can: Operate legally under India’s tax framework. Claim input tax credit (ITC), minimising the cost of taxes paid on purchases. Supply goods or services interstate or sell on e-commerce platforms, where GST registration is often compulsory. Build trust with suppliers, customers, financial institutions, and investors. For foreign-owned companies, timely GST registration is essential for integrating into India’s formal economy and ensuring operational readiness. Navigating GST Registration on the GST Portal GST registration is completely online, free of government charges, and conducted through the official GST portal. The typical steps include: 1. Starting the Application (Form REG-01 Part A) Applicants select “New Registration”, choose the appropriate category such as “Taxpayer”, and provide basic details PAN, mobile number, and email. OTP authentication leads to the generation of a Temporary Reference Number (TRN). 2. Filling Detailed Information (Form REG-01 Part B) Using the TRN, applicants enter: Business details Promoter/partner information with PAN and Aadhaar Principal place of business Bank details Goods/services information with relevant HSN/SAC codes 3. Uploading Documents Required documents depend on the entity structure: Proprietorship: PAN and Aadhaar of proprietor, address proof, photograph, bank details Partnership / LLP: Partnership deed, PAN of firm, PAN/Aadhaar of partners, address proof, bank information Private Limited Company: Certificate of incorporation, company PAN, PAN/Aadhaar of directors, board resolution, address proof, bank details 4. Final Authentication and Submission Applicants authenticate the form using: DSC (mandatory for companies and LLPs) Aadhaar-based e-Sign EVC via OTP An Application Reference Number (ARN) is then issued to track the status. Under the revised rules, low-risk applications can be approved within three working days, while others may require additional verification. Key Insights for Foreign Individuals and Foreign-Owned Businesses The GST changes effective 1 November 2025 aim to create a secure, data-driven onboarding system while accelerating approvals for genuine applicants. Aadhaar and PAN verification are now central to registration. Foreign entities must ensure that Indian directors, promoters, and authorised signatories have valid KYC credentials. The three-day approval applies only when Aadhaar authentication is completed, documentation is consistent, and the application is not tagged as high-risk. The optional Rule 14A pathway offers a simplified route for small taxpayers with a monthly output GST liability under ₹2.5 lakh, along with clear rules for opting out. Understanding eligibility and documentation requirements helps foreign businesses avoid delays and ensures a smooth registration journey. Conclusion: Navigating India’s New GST Registration Era with Confidence India’s upgraded GST registration system is designed to balance stronger verification with faster approvals. For foreign individuals and multinational companies, the revised process places significant emphasis on accurate documentation, compliant KYC, and timely Aadhaar-PAN authentication. With the combination of risk-based scrutiny, three-working-day approvals for eligible applicants, and the optional simplified Rule 14A route, the system is now more secure, transparent, and efficient. By planning the application strategy carefully whether through the standard route or the small taxpayer option foreign-owned businesses can secure their GSTIN without avoidable delays. This preparation also supports wider entry procedures such as Company Registration services in india, ensuring the business lays a strong foundation for compliant, credible, and scalable operations across the country.  

Is the DPDP Act, 2023 Applicable to Your Organisation? A Practical Overview As India moves into a new era of data governance, the Digital Personal Data Protection (DPDP) Act, 2023 together with the DPDP Rules, 2025, has introduced a structured, principle-driven framework for the responsible use of digital personal data. As organisations prepare for India’s evolving data governance landscape, one question has become increasingly common: “Does the Digital Personal Data Protection (DPDP) Act, 2023 apply to my organisation?” In most situations, it does. The data protection laws in India are intentionally broad, designed to ensure that any entity handling digital personal data operates with transparency, accountability and purpose limitation. This article provides a detailed, professionally structured explanation of the key concepts, applicability criteria and operational obligations introduced by the DPDP framework 1. Core Definitions and Their Practical Relevance Understanding the Act begins with understanding its terminology. The following definitions determine whether your organisation falls within the scope of the law and what obligations follow. Personal Data This refers to any information that can identify an individual, directly or indirectly. In practice, the Personal Data Protection Act includes basic details such as names and mobile numbers, but also identifiers like email addresses, customer IDs, employee codes, payment information or any other data that can be linked back to a person. Digital Personal Data The Act covers personal data in digital form as well as data collected offline but later digitised. Thus, scanned KYC documents, Excel sheets of customers, CRM entries, HRMS records and digitised onboarding forms fall squarely within this scope. In most modern organisations, personal data is digitised at some stage, making this definition widely applicable. Processing Processing covers any automated operation performed on digital personal data. This ranges from collection and storage to analysis, transmission, sharing, erasure and destruction. If an organisation operates systems like applications, SaaS platforms, ERPs, CRMs, HRMS tools or even basic cloud storage solutions, and these systems touch personal data, the organisation is engaged in processing. Data Principal The individual whose personal data is being processed. For children, the term extends to parents or guardians. For certain persons with disabilities, a lawful guardian may act on their behalf. This definition reinforces the rights-centric nature of the Act. Data Fiduciary The entity that determines the purpose and means of processing personal data. This includes companies, startups, professional firms, NGOs, government bodies and any entity that decides how and why personal data is managed. Data Processor A person or organisation that processes personal data on behalf of a Data Fiduciary. Common examples include cloud service providers, payroll processors, IT/BPO vendors and marketing agencies. Importantly, processors act only under the instructions of the Data Fiduciary. Consent Consent must be free, specific, informed, unambiguous and unconditional. It must be tied to a clearly defined purpose, provided through affirmative action, and restricted to only the personal data necessary for that purpose. 2. When Does the DPDP Act Apply? The DPDP Act applies when three conditions come together: An organisation handles digital personal data or digitises offline personal data. Any level of automated processing is involved, whether fully or partially. The processing takes place within India, or outside India but in connection with offering goods or services to individuals located in India. Given the current business environment where employee records, customer touchpoints, vendor information and user data are routinely stored or managed digitally these conditions are met by most enterprises. This includes startups, platforms, professional service firms, digital marketplaces, D2C brands, technology providers, and even traditional businesses using cloud-based tools. In effect, the DPDP Act is designed as a broad-based framework, and organisations should assume applicability unless they clearly fall outside these parameters. 3. The Transition to Granular and Purpose-Linked Consent One of the most significant developments introduced by the DPDP Act and Rules is the shift from generic, blanket consent declarations to itemised and purpose-linked consent. This represents a fundamental transformation in how organisations must seek, record and demonstrate consent. Under the earlier model, organisations often relied on broad consent statements covering multiple data categories and multiple purposes. Under the new framework, this is no longer permissible. Consent must now: Clearly specify which personal data points are being collected. Explain the purpose for each data point. Distinguish between essential and optional data. Be presented in a manner that enables individuals to understand and meaningfully choose. For example, a single all-purpose statement such as “I consent to the collection of my information for services and marketing” must be replaced with detailed disclosures. Aadhaar may be collected only for statutory KYC; camera access only for video identity verification; contact list access must be justified separately and cannot be bundled with essential services. This move enhances transparency, reduces over-collection and establishes stronger accountability for organisations. 4. Strengthened Accountability and Enforcement To ensure that the new data protection regime is not merely declaratory, the DPDP framework introduces clear accountability obligations and enforcement mechanisms. Data Fiduciaries must be able to demonstrate that consent was properly obtained and that notices were provided in a compliant manner. They must also implement processes for withdrawal of consent, correction and erasure requests and grievance handling. When Consent Managers become operational, individuals will be able to view, withdraw and manage their consents across platforms through these registered entities, creating a more structured and standardised ecosystem. Penalties under the Act can go up to ₹250 crore for serious non-compliance, signalling the government’s intent to enforce the law effectively. 5. Privacy Notice Requirements The privacy notice becomes a central governance tool under the DPDP regime. The Act and Rules require that: The notice be written in clear, plain language and be comprehensible on its own. It provide an itemised list of the personal data being collected. The purpose of processing, and the corresponding goods or services, be clearly described. Contact details of the Data Protection Officer or authorised representative be provided. Direct mechanisms be included for withdrawal of consent, exercising rights and submitting complaints to the Data Protection Board. It be … Read more

The Indian market has emerged as one of the most dynamic destinations for global expansion, backed by an enormous consumer base, a skilled workforce, and, most importantly, a reform-oriented government that actively promotes foreign investment. Yet, despite its potential, the Indian business landscape is uniquely complex. Regulatory nuances, tax intricacies, cultural differences, and operational challenges mean that success requires far more than capital and enthusiasm. Even well-established global brands have faced obstacles caused by avoidable oversights during their entry process. This article outlines the top five mistakes foreign companies commonly make in India and highlights how understanding these challenges can help investors build a strong, compliant, and sustainable foundation. 1) Choosing the Wrong Entry Structure The foundation of a successful India-entry strategy lies in selecting the appropriate business structure. Engaging expert company registration services in India ensures a smooth and compliant setup process. India provides multiple entity options under the Foreign Exchange Management Act (FEMA), each with distinct legal, operational, and tax implications: Structure Key Purpose Liaison Office Represents communication only; no commercial activity permitted. Branch Office Carries out business activities in India similar to its parent company, but within a defined scope. Project Office Set up solely for the execution of a specific project. Wholly Owned Subsidiary (Private Limited Company) Enables full commercial operations, invoicing, hiring, and scalability. A frequent mistake is choosing a Liaison Office. A Liaison Office is authorised to act only as a channel of communication. It cannot generate revenue, sign contracts, or issue invoices in India. However, many companies use it for business activities and end up committing major compliance breaches under Reserve Bank of India (RBI) and FEMA guidelines. Our Insight: Before entering India, establish an entity type that aligns with your commercial objectives. For revenue-generating operations, a Private Limited Company or Limited Liability Partnership (LLP) is generally the most compliant and flexible option. 2) Ineffective Ownership Structuring Ownership structure affects governance control, tax exposure, fund repatriation, and long-term scalability. Many foreign investors initially place shares in the names of individuals (such as local directors) to speed up incorporation, or they appoint a foreign individual as a shareholder. This often results in: Operational bottlenecks requiring physical signatures or presence in India Challenges in capital infusion or restructuring Misalignment with global holding-company practices Our Insight: Route ownership through the foreign parent entity, not individuals. This ensures strategic control and simplifies corporate decision-making. Additionally, ensure alignment with the applicable FDI Route: FDI Route Requirement Impact Automatic Route No prior approval 100% foreign ownership allowed. Government Route Prior approval required Certain sectors may require an Indian partner. Correct ownership planning from the outset helps prevent regulatory hurdles later. 3) Unbalanced Board Composition Structure Indian law requires every company to appoint at least one resident director. However, many foreign subsidiaries appoint only one resident and one foreign director, inadvertently creating an unclear control balance. A more strategic approach is to appoint two foreign directors and one resident director. This maintains operational authority with the headquarters while ensuring compliance. Common governance oversights include delays in obtaining the Director Identification Number (DIN), Digital Signature Certificate (DSC), and Know Your Customer (KYC) validations, which may stall filings and operational approvals. Our Insight: Define decision-making authority clearly in the Articles of Association. Ensure the resident director is a dependable governance representative and not merely a nominal signatory. 4) Underestimating India’s Regulatory Landscape India’s compliance environment is multi-layered and includes: Companies Act filings FEMA and RBI reporting Goods and Services Tax (GST) registration and returns Income tax and transfer pricing compliance State-specific labour and commercial laws Many companies comply with one regulatory regime but inadvertently miss others—for example, filing corporate returns but neglecting FEMA reporting or transfer pricing documentation. Our Insight: Maintain a centralised compliance calendar and engage a single-window India advisory partner to ensure timely filings and alignment across regulatory bodies. 5) Ignoring Documentation Protocols Incorporation and operational approvals in India are documentation-intensive. Common causes of delays include: Non-apostilled or improperly notarised documents Documents not in English or missing certified translations Expired documents beyond validity timelines (generally 3–6 months) Missing board resolutions or identity proofs Our Insight: Use an India-specific documentation checklist and prepare required documents before initiating incorporation. Conclusion: The Value of Getting It Right from Day One Entering India offers immense opportunities, but success depends on how an organisation sets its foundation. The most common issues foreign companies face are not strategic miscalculations they stem from selecting an unsuitable entry structure, unclear ownership planning, ineffective governance, underestimating the regulatory environment, and overlooking documentation requirements. These challenges are entirely preventable with informed planning and the right advisory support. By choosing the correct entity type, structuring ownership thoughtfully, establishing a clear and compliant board framework, maintaining regulatory discipline, and preparing documentation meticulously, foreign investors can significantly reduce risk and accelerate time-to-market. India rewards companies that are structured, compliant, and proactive. Those that focus on getting it right from Day One are best positioned to scale sustainably and capture the full potential of the Indian market.

Gujarat International Finance Tec-City (GIFT City) is India’s first and only International Financial Services Centre (IFSC). The International Financial Services Centres Authority (IFSCA) regulates all business activity within GIFT City. As of December 2025, the authority reports over 1,034 registered entities operating within its framework. Total banking assets exceed USD 106 billion, and average monthly exchange turnover has crossed USD 91 billion, according to IFSCA’s official data. This guide covers eligibility, entity structures, the registration process, tax benefits, and compliance obligations for foreign businesses evaluating company registration in GIFT City. What Is GIFT City and Its Role in India’s Financial Landscape? Positioned in Gandhinagar, Gujarat, GIFT City was built to onshore cross border financial activity that was previously conducted from overseas financial centres. It operates as both a multi services Special Economic Zone (SEZ) and India’s only IFSC. GIFT City offers a regulatory and fiscal environment comparable to established international financial centres worldwide. India’s First International Financial Services Centre The IFSCA was established on 27 April 2020 under the International Financial Services Centres Authority Act, 2019. Prior to this, four domestic regulators each governed a separate segment of IFSC business. These were the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Pension Fund Regulatory and Development Authority (PFRDA), and Insurance Regulatory and Development Authority of India (IRDAI). Consolidating all four under a single authority eliminated regulatory overlap and made GIFT City a practical base for global financial institutions. Two Operational Zones Within GIFT City GIFT City contains two distinct operational zones. The SEZ zone functions as the IFSC area, where entities operate in foreign currencies and serve international clients. The Domestic Tariff Area (DTA) operates under standard Indian business regulations and caters to domestic clients. Foreign businesses seeking IFSC status register within the SEZ zone. Why Foreign Businesses Choose to Start a Company in GIFT City? Foreign businesses choose to start a company in GIFT City for three principal reasons: competitive tax treatment, consolidated regulation, and foreign currency operating freedom. Unlike mainland India, the IFSCA governs all GIFT City entities as a single regulatory authority, replacing the previous four-regulator structure. The GIFT City IFSC framework specifically accommodates financial institutions, fund managers, and service providers with international client bases. Tax incentives under Section 80LA: IFSC units qualify for a 100% income tax deduction under Section 80LA of the Income Tax Act, 1961. This deduction applies for any 10 consecutive assessment years within the eligible block period. The Union Budget 2026 introduced further refinements to this provision. A concessional corporate tax rate of 15% applies to certain specified income streams for eligible entities. Unified regulatory authority: Businesses in GIFT City interact with the IFSCA as their sole regulator. They no longer manage separate approvals from the RBI, SEBI, and IRDAI. This reduces setup timelines and simplifies the ongoing compliance calendar. Foreign currency operations: GIFT City entities transact in USD, GBP, EUR and other major currencies. This makes GIFT City particularly relevant for treasury centres, fintech platforms, and financial institutions with international client bases. Which Businesses Are Eligible for Company Registration in GIFT City? Company registration in GIFT City is not open to all business types. The IFSCA defines a specific list of permissible activities, and businesses must confirm alignment with the applicable regulatory framework before initiating the registration process. Sectors Permitted to Operate in GIFT City The following sectors are currently eligible for IFSC registration: Banking: IFSC Banking Units (IBUs), custodian services, retail banking for non-residents, treasury and structured deposit operations Insurance and reinsurance: Indian and foreign insurers, reinsurers, intermediaries, and IFSC Insurance Offices Capital markets: Stock and commodity exchanges, brokers, clearing corporations, depositories, and credit rating agencies Asset and fund management: Alternative Investment Funds (AIFs), Portfolio Management Services (PMS), fund management entities, and family offices Aircraft and ship leasing: Leasing and financing of aviation and marine assets Fintech and payment services: Payment aggregators, cross border remittance providers, and e-money issuers Allied and support services: Accounting and audit firms, compliance advisories, and global in-house centres Legal Entity Structures Available in GIFT City GIFT City permits registration through four principal entity structures. The choice depends on the proposed financial activity, the parent group’s governance preference, and the capital requirements IFSCA sets for each sector. Entity Structure  Key Characteristic  Suited For  Private Limited Company Limited liability; eligible for equity issuance Multinational corporations, financial institutions Limited Liability Partnership (LLP) Flexible management; comparatively lower compliance burden Professional service firms Branch Office Direct extension of the foreign parent entity Foreign companies requiring a direct operational link Wholly Owned Subsidiary Full parent control with a separate legal identity Foreign groups establishing an independent India presence Eligibility Criteria for Foreign Entities Pursuing Gift City Company Registration Entities from Financial Action Task Force (FATF) compliant countries meet the baseline eligibility criteria for company registration in GIFT City. Minimum capital requirements vary by sector. IFSC Banking Units, for instance, require a minimum of USD 20 million in capital as prescribed by IFSCA. Entities must also maintain clear operational separation between the GIFT City unit and the foreign parent. IFSCA’s ring-fencing requirement means the GIFT City entity’s finances, contracts, and reporting lines must remain legally distinct from the parent company. Key Benefits of Setting Up Business in GIFT City for Foreign Entities Setting up business in GIFT City delivers advantages that go well beyond income tax relief. The IFSCA has designed GIFT City’s regulatory architecture to match the standards of leading international financial centres. This creates a stable, long term fiscal environment for global institutions. Benefit  Detail  Governing Authority  100% income tax deduction For any 10 consecutive assessment years within the eligible block period under Section 80LA Central Board of Direct Taxes (CBDT) / Finance Act No Goods and Services Tax (GST) on offshore services Full exemption on services provided to IFSC units and offshore clients Central Board of Indirect Taxes and Customs (CBIC) / GST Council No Stamp Duty or STT Transactions on IFSC exchanges are fully exempt from Stamp Duty and Securities Transaction Tax (STT) Finance Act No Customs Duty Goods imported for authorised operations are exempt from customs levy CBIC Capital gains tax exemption Applicable to specified securities and offshore derivatives held by non-residents Income Tax Act, 1961 Foreign currency accounts Entities may operate accounts … Read more

India’s capital markets are experiencing a significant digital transformation. Central to this shift is dematerialization, which is the conversion of physical share certificates into electronic form, supported by the International Securities Identification Number (ISIN) system. For foreign companies and investors aiming to establish or expand their presence in India, understanding dematerialization goes beyond regulatory compliance. It serves as a crucial facilitator of transparency, efficiency, and global compatibility within India’s rapidly evolving financial ecosystem. WHAT IS DEMATERIALIZATION? Dematerialization, commonly known as “demat,” is the process by which physical share certificates are converted into electronic holdings maintained within a Depository System. This system enables investors to hold, transfer, and track securities digitally, eliminating the risk of loss, theft, or forgery associated with paper certificates. Dematerialization is therefore central to India’s push for a more transparent and technology-driven securities market. HOW THE DEMATERIALIZATION PROCESS WORKS Understanding the step-by-step process is essential for companies preparing to issue or manage securities in India. Opening a Demat Account Firstly, the investor needs to open a Demat Account with a DP, which should be affiliated either with NSDL or CDSL. A DP acts as an intermediary between the investor and the depository, facilitating the holding and transfer of securities in an electronic mode. Both NSDL and CDSL come under the regulation of SEBI to ensure transparency and safe market transactions. Appointment of Registrar and Transfer Agent (RTA) It helps the companies to maintain their records of the shareholders of the company through a registered entity with SEBI, Registrar and Transfer Agent. The RTA also liaises with the depositories to obtain an ISIN for each class of security that is issued by the company. Agreement with NSDL or CDSL An agreement has to be executed between the company and one of the depositories, NSDL or CDSL, to confirm its participation in the depository system and adherence to the applicable compliance and reporting requirements. ISIN Allotment The ISIN is a 12-character alpha-numeric code, such as INE123A01016, acting as a unique identifier for every issued security in the international market. This ISIN is allocated by the depository in coordination with the RTA and the issuer company for standardized identification and traceability of securities in the markets. Credit of Shares to Shareholders’ Demat Accounts When the ISIN is allotted and the securities are approved for dematerialization, the company’s shares get credited in the Demat Accounts of shareholders, thus completing the electronic conversion. Understanding ISIN Generation in India To fully grasp the dematerialization framework in India, it is essential to understand the International Securities Identification Number (ISIN). An ISIN is a unique 12-character alphanumeric code that serves as a universal identifier for a specific security, such as equity shares or bonds, enabling clear identification in cross-border trading and settlement. In India, the National Securities Depository Limited (NSDL) acts as the National Numbering Agency, authorized by SEBI to issue these codes. The structure of an Indian ISIN follows the international ISO 6166 standard and reveals specific information. The first two characters are always “IN,” the country code for India. The last character is a check digit, calculated using an algorithm to prevent errors. The core of the ISIN is the 9-character Basic Identification Number issued by NSDL. This segment contains critical details. It begins with a single character denoting the Issuer Type. Common codes include ‘E’ for companies and statutory corporations, ‘F’ for mutual funds, and numbers like ‘0’ through ‘4’ for various government securities. The next four characters form the Issuer Code, a unique alphanumeric identifier for the specific company or fund. This is followed by a two-character Security Type code. For instance, ’01’ is typically used for Equity Shares of companies and Mutual Fund Units. The final two characters of this core segment are a Serial Number to distinguish between different security issues from the same issuer. Detailed Process: ISIN Generation and Share Dematerialization For private companies required to comply with dematerialization rules, the process runs on two tracks: the company must set up the demat infrastructure, and shareholders must convert their physical shares to electronic form. 1. The Company’s Role in Setting Up Demat Infrastructure The company begins by amending its Articles of Association to allow dematerialization. It must then appoint a SEBI-registered Registrar and Transfer Agent (RTA) to handle shareholder records and coordinate with the depositories. Obtaining the ISIN Through the RTA, the company applies to NSDL or CDSL for an ISIN for each security class. Key documents such as the incorporation papers, amended AoA, and board resolution—must be submitted. After verification, the depository issues the ISIN, and the company executes a formal agreement to join the electronic system. 2. The Shareholders’ Role in Converting Physical Certificates Shareholders must open a Demat Account with a Depository Participant (DP). They submit physical certificates along with a Dematerialization Request Form (DRF), ensuring each certificate is marked “SURRENDERED FOR DEMATERIALIZATION.” Processing the Dematerialization The DP verifies and sends the request to the depository, which forwards it to the company’s RTA. After validation, the RTA authorises the credit of electronic shares to the shareholder’s Demat Account, and the physical certificates are permanently destroyed. 3. Critical Compliance Notes for Companies Companies must follow key regulations to remain compliant. Regulatory Requirements The deadline for eligible private companies to fully adopt dematerialization was 30 June 2025. A half-yearly PAS-6 return must be filed to reconcile physical and demat shareholding. Depository Interoperability A shareholder with a DP under CDSL cannot dematerialize shares of a company with an ISIN only under NSDL, and vice versa. Companies should consider obtaining ISINs from both depositories or align with those used by most shareholders. WHO NEEDS TO COMPLY WITH DEMATERIALIZATION RULES India has implemented dematerialization requirements in phases, beginning with public companies and later extending to larger private firms. Under Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014, all unlisted public companies have been required to issue securities exclusively in dematerialized form since 2nd October 2018. Subsequently, through an amendment dated 27th October 2023, the MCA … Read more

On August 12, 2025, the Union Cabinet approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM). These facilities will be set up in Odisha, Punjab, and Andhra Pradesh, marking a major step toward strengthening India’s semiconductor ecosystem. The newly approved plants are intended to bring advanced chip fabrication and packaging capabilities to different regions of the country. This geographic distribution of investments highlights the government’s focus on balanced regional growth, while also advancing India’s vision of creating a resilient semiconductor supply chain. The four projects, proposed by SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies, together involve an investment of around ₹4,600 crore. They are projected to create jobs for 2,034 skilled professionals, while boosting the broader electronics manufacturing ecosystem and generating numerous indirect job1 opportunities. Industry Focus of the Approved Proposals The newly sanctioned semiconductor projects are designed to strengthen India’s expertise in chip fabrication, advanced packaging, and discrete device production, addressing key gaps in the nation’s electronics ecosystem. In line with the India Semiconductor Mission, these initiatives aim to reduce import reliance, build supply chain resilience, and encourage technology transfer through international collaborations. Alongside advancing priority industries such as automotive, renewable energy, defence, and consumer electronics, the projects are expected to generate high-value jobs, support ancillary sectors, and contribute to India’s economic growth by positioning the country as a competitive force in the global semiconductor industry. Odisha: In Bhubaneswar, SiCSem Private Limited, in partnership with UK-based Clas-SiC Wafer Fab Ltd., will establish India’s first commercial Silicon Carbide (SiC) compound semiconductor fabrication plant with a capacity of 60,000 wafers and 96 million packaged units per year. The facility will serve advanced applications in automotive, renewable energy, and industrial electronics. Additionally, 3D Glass Solutions Inc. will set up a state-of-the-art packaging and embedded glass substrate facility in Info Valley, deploying technologies like glass interposers, silicon bridges, and 3D Heterogeneous Integration (3DHI) modules. With annual capacity of nearly 70,000 glass panel substrates, 50 million assembled units, and 13,000 3DHI modules, this unit will support sectors such as defence, AI, high-performance computing, RF, photonics, and automotive electronics. Andhra Pradesh: Advanced System in Package (ASIP) Technologies, in collaboration with South Korea’s APACT Co. Ltd., will set up a semiconductor facility with an annual output of 96 million units. Its products will target fast-growing markets like mobile devices, set-top boxes, automotive electronics, and consumer electronics. Punjab: In Mohali, Continental Device India Private Limited (CDIL) will scale up its discrete semiconductor facility to produce high-power components such as MOSFETs, IGBTs, Schottky diodes, and transistors in both silicon and silicon carbide. With a capacity for 158 million units annually, the facility will directly serve EVs, charging infrastructure, renewable energy, power conversion, industrial electronics, and communications. Together, these projects mark a major boost to India’s semiconductor landscape, featuring the country’s first compound semiconductor fabrication plant and an advanced glass-based packaging unit. They complement India’s fast-growing, government-backed chip design ecosystem, ensuring stronger integration into global supply chains. Foundation of India’s Semiconductor Growth: Past Project Approvals With these recent approvals, the overall number of sanctioned initiatives under the India Chipmaking Mission has increased to 10, attracting cumulative investments of around INR 1.60 lakh crore across various regions of the nation. This milestone highlights India’s accelerating journey toward building a robust semiconductor ecosystem, bolstering its position in international value chains while advancing innovation, employment, and economic growth within. Date of Approval Company Location Investment Output Capacity June 2023 Micron Technology Sanand, Gujarat ₹22,516 crore ATMP Facility, with phased ramp-up. February 2024 Tata Electronics (TEPL) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan Dholera, Gujarat   ~₹91,000 crore 50,000 wafers/month February 2024 CG Power & Industrial Pvt Ltd in partnership with Renesas & Stars Sanand, Gujarat ~₹7,600 crore 15 million chips/day February 2024 Tata Semiconductor Assembly and Test Pvt Ltd Morigaon, Assam ₹27,000 crore 48 million chips/day September 2024 Kaynes Semicon Pvt Ltd Sanand, Gujarat ₹3,307 crore 6.33 million chips/day MAY 2025 HCL-Foxconn JV Jewar, Uttar Pradesh ₹3,700 crore 20,000 wafers/month August 2025 SicSem Private Limited Bhubaneshwar, Odisha ₹2,066 crore 60,000 wafers/year August 2025 3D Glass Solutions Inc. Bhubaneshwar, Odisha ₹1,943 Cr 70,000 Glass panels/year August 2025 CDIL (Continental Device) Mohali, Punjab ₹117 Cr 158 million units /year August 2025 ASIP (Advanced System in Package Technologies) Andhra Pradesh ₹468 Cr 96 million units /year Government Initiatives to Boost Semiconductor Design and Skilled Workforce India has offered significant design resources and support to numerous academic institutions alongside 72 start-ups, encouraging innovation and developing the next wave of semiconductor professionals. In July this year, the Electronics and Information Technology (MeitY) approved multiple chip design initiatives from startups, small firms, and educational institutions, targeting uses such as security systems, smart devices, networking equipment, plus microprocessor IP solutions. Progress under this initiative has already been notable: several startups have obtained venture capital, while companies have finalised prototype tape-outs through international foundries, and institutions have built 20 chip models at the Semiconductor Laboratory in Mohali, Punjab. Supported by a budgeted outlay of INR 8.03 billion, this scheme provides nearly 50 percent expense coverage for designing and prototyping (limited at INR 150 million) and performance-based incentives of roughly 4-6 percent on net sales over five years (restricted at INR 300 million). Altogether, these measures are laying a solid foundation for skilled workforce development plus a self-reliant design ecosystem, vital towards sustaining India’s future semiconductor ambitions. Conclusion In summary, the India Semiconductor Mission (ISM) has quickly emerged as a key pillar of the country’s technology agenda, with 10 sanctioned projects drawing investments of over INR 1.60 trillion and covering vital domains such as fabrication, packaging, and discrete device production. Alongside these industrial achievements, government-supported programs in chip design, prototyping, and talent development are building a strong innovation pipeline across academia and startups. Collectively, these initiatives are not only reducing import dependence and reinforcing supply chain resilience but also positioning India as a rising hub in the global semiconductor ecosystem, driving long-term economic growth, … Read more

Background In 2022, the Reserve Bank of India (RBI) permitted foreign banks to open Special Rupee Vostro Accounts (SRVAs) to enable trade settlements in Indian Rupees (INR). This move was part of a broader strategy to promote the “internationalisation” of the rupee. What is an SRVA? A Special Rupee Vostro Account (SRVA) is a rupee-based account maintained with an Authorised Dealer (AD) Category-I bank in India on behalf of a foreign bank or entity. It allows international entities to carry out trade transactions directly in Indian Rupees. Regulatory Compliances According to RBI guidelines, SRVAs operate under the Foreign Exchange Management Act (FEMA) and are subject to Know Your Customer (KYC) requirements. Earlier, Indian AD Category-I banks had to obtain prior approval from the RBI before opening SRVAs for overseas correspondent banks. Treatment of Surplus Funds Previously, if surplus balances accumulated in SRVAs, foreign banks needed to register as Foreign Portfolio Investors (FPIs) with the Securities and Exchange Board of India (SEBI) in order to invest these funds in Indian capital markets. Development: RBI’s Announcement On 05 August 2025, the RBI announced that AD Category-I Banks can now open SRVAs for overseas banks without seeking prior approval, while all other regulatory norms remain applicable. Further, on 12 August 2025, the RBI allowed SRVA holders to invest surplus rupee balances in Central Government Securities (G-secs), including Treasury Bills (T-Bills), within specified limits. The guidelines mandate that proceeds from matured securities and any interest earned be credited back to the same SRVA, ensuring the funds stay available for trade settlements or reinvestments. Key benefits of the development SRVA holders can now deploy their surplus balances more effectively by investing in risk-free G-secs and Treasury Bills, thereby earning returns. The step supports the rupee’s global reach by enabling foreign entities to access India’s government securities market without needing FPI registration. It encourages cross-border trade settlements in Indian rupees, reducing reliance on the US dollar and cutting foreign exchange transaction costs. How India–UAE trade relations can benefit By promoting the use of the rupee in cross-border trade and simplifying the settlement mechanism, this step will boost efficiency and reinforce the resilience of the India–UAE trade corridor, bringing advantages to businesses on both sides. Conducting oil trade with the UAE directly in rupees, without relying on a third-party currency like the dollar, will also align with India’s wider strategy and strengthen its energy trade ties with countries such as Russia. For businesses looking to establish and expand their presence in such evolving trade environments, partnering with a Company Registration consultant in India can ensure smooth market entry and regulatory compliance.   

Introduction: Relations between India and China seem to be improving following the trip of Chinese Foreign Minister Wang Yi to New Delhi, where he jointly co-chaired the 24th round of the Special Representatives’ meeting with India’s National Security Advisor Ajit Doval. The visit resulted in a series of steps aimed at easing tensions and restoring trust after more than five years of strained relations. Among the most notable actions were the decision to reopen border trade routes and boost cross-border investment flows, creating fresh opportunities for businesses on both sides. Discussions are additionally progressing to resume border commerce in locally produced goods, signaling a positive development in bilateral ties. Both sides have suggested reopening designated trade points along their shared border. This could give access to cost-effective goods, enable businesses to leverage shared manufacturing capabilities, and broaden market opportunities for producers on both sides. India’s participation in the Shanghai Cooperation Summit The Shanghai Cooperation Council is a two-day gathering that brought together more than 20 leaders from non-Western countries, serving as a platform to highlight China’s goal of shaping a new global security and economic framework. Prime Minister Narendra Modi attended the recently finished Shanghai Cooperation Organisation (SCO) meeting in China, marking his first trip to the country in seven years. On the sidelines of the summit, he engaged in a bilateral discussion with President Xi Jinping, offering a valuable opportunity to further dialogue and cooperation between the two countries. At the summit, Prime Minister Modi stressed regional stability, security, and sustainable development, framing India’s SCO plan around Security, Connectivity, and Opportunity. He underlined that peace and conversation are vital for prosperity and for building more constructive India-China ties. On August 31, Modi and President Xi emphasized that India and China should collaborate on development rather than competing. Improved relations could enhance trade, attract investment, and increase confidence, benefiting India’s infrastructure, technology, and manufacturing sectors while giving China greater entry to India’s fast-growing consumer market. The Tianjin Declaration of the SCO Council further emphasised commitments to bolster cooperation in artificial intelligence, reaffirming that all countries have equal rights to develop and utilise AI. Such collaboration could accelerate the development of more advanced and cost-effective AI models, facilitating broader adoption across key sectors like healthcare, logistics, finance, and manufacturing. This, in turn, may help lower operational costs, boost productivity, and create new investment opportunities, supporting sustainable growth among member states. Supporting this vision, President Xi pledged that China will continue to share the opportunities of its vast market and implement its action plan for high-quality economic and trade cooperation within the SCO framework. For India, this offers an opportunity to expand bilateral economic ties by aligning on trade and development initiatives under the SCO umbrella. Enhanced cooperation in areas such as market access, supply chain integration, and cross-border investment could strengthen engagement, further consolidating the positive momentum in India–China relations.  Top outcome of the Special Representatives’ and SCO summit dialogue: Both sides agreed to maintain engagement through diplomatic and military channels. Prime Minister Modi emphasised the importance of a fair, reasonable, and mutually acceptable resolution to the boundary issue, highlighting dialogue and peaceful negotiations. Prime Minister Modi welcomed the progress made since his last meeting with President Xi in 2024, noting constructive steps in bilateral engagement. India expressed its readiness to work constructively with China, signalling a willingness to expand cooperation. India and China agreed to resume direct passenger flights and update the Air Services Agreement, simplifying visa procedures to promote trade, tourism, and broader cross-border interaction. Discussions included plans to revive trade through key border passes such as Lipulekh, Shipki La, and Nathu La, potentially enhancing economic opportunities and improving local connectivity. At the SCO Summit, both leaders reaffirmed that India and China should be seen as development partners rather than rivals, signaling a commitment to closer collaboration. The Tianjin Declaration of the SCO Council reaffirmed commitments to strengthen cooperation in artificial intelligence, with significant potential to reduce costs, boost innovation, and generate new investment opportunities across member states. President Xi pledged that China would share the opportunities of its vast market and pursue high-quality development of economic and trade cooperation within the SCO framework, creating fresh avenues for bilateral economic engagement with India. The summit highlighted three key pillars of India’s engagement within the SCO framework -Security, Connectivity, and Opportunity, underscoring peace and regional stability as essential for sustainable prosperity. Focus on the border and bilateral co-operation. During his two-day visit to New Delhi, Chinese Foreign Minister Wang Yi highlighted that India and China should view each other as partners. This visit marked only the second high-level engagement between the two nations since 2020, emphasising its importance in ongoing efforts to rebuild and strengthen bilateral relations. Wang Yi held talks with India’s External Affairs Minister S. Jaishankar on August 18, 2025, and was scheduled to meet Prime Minister Modi on August 19. He remarked that India-China bilateral relations are progressing on a “positive trend” toward deeper cooperation. The visit also yielded concrete outcomes, with Wang assuring that China would resume supplying critical commodities to India, including fertilisers, rare earth minerals, and tunnel boring machines (TBMs), which are vital for India’s agriculture and infrastructure development. Global attention on India-China engagement An improvement in India-China relations holds considerable global significance, given the economic and strategic weight of both countries. As Asia’s largest emerging economies and key players in multilateral platforms like BRICS, closer cooperation between India and China could bolster regional stability, open new opportunities for trade and investment, and enhance joint efforts to tackle global challenges such as climate change, supply chain resilience, and sustainable development. India-China trade activities over the year India-China trade has steadily increased over the years, though the trade balance has continued to favour China, with India heavily dependent on imports of essential goods such as electronics, machinery, and industrial inputs. In FY24, the total value of imports from China reached US$101.74 billion. India-China Trade Relation Year-on-Year (Values in USD Billion) Trade Activities 2020-2021 2021-2022 … Read more