India possesses a dynamic and growing economy—one its
government portrays as business friendly—and actively
encourages continued foreign direct investment. At the same
time, aggressive transfer pricing enforcement, including several
administrative and high court rulings, suggests a far different
business environment, one that is contrary to traditional
international tax norms, posing a conundrum for current and future
investors.
India is an emerging economic and political power. While
currently ranked ninth in terms of the gross domestic product, as
one of the faster growing economies, it is expected to rank as high
as third or fourth within the next 25 years.
Today, India is at the crossroads. While the country's
technical resources have attracted many top foreign multinational
enterprises (MNEs) and led to a burgeoning high-tech sector and the
birth of a number of home-grown multinationals, it is still starved
for foreign investment to continue fueling its
