Why invest in Delhi?

Transport Minister Kamal Nath has indicated that India is poised to attract a substantial investment of US$10 billion for its roads over the next two years. India boasts one of the largest road networks in the world, totaling 3.34 million kilometers, and is currently implementing the National Highways Development Project (NHDP), the largest highway project ever undertaken by the country, through the National Highway Authority of India. Major upgrades of airports in New Delhi and Mumbai are currently underway, with other major cities also experiencing a significant increase in business and leisure air travel. India has approximately 12 major ports and 185 minor ones, and a major program aimed at developing the ports and shipping sector is estimated to require an investment of US$22 billion. The Indian government offers incentives, including automatic approval of up to 100 percent foreign equity participation, for the construction of ports and harbors. The telecommunications industry in India is expected to generate revenues worth over US$40 billion by 2013, with 9 million phones being added every month. India is also developing townships for its rapidly growing and increasingly affluent urban middle class, requiring city level infrastructure in roads, bridges, IT parks, sanitation, and water supply. The power sector is a high priority for India, with the government aiming to achieve “power for all by 2012” through an installed generation capacity of at least 200,000 megawatts. Dezan Shira & Associates is a foreign direct investment practice that offers business advisory, tax, accounting, due diligence, payroll, and audit services to multinational clients in China, Hong Kong, India, and Vietnam. For professional advice and assistance with tax and regulatory matters, please contact us.