India should liberalize its taxation regime for expats
India may be attracting foreign direct investment but big global firms are still not picking the country for their regional hubs. Tax laws that are unfavourable to expats remain a big deterrent.
India has undoubtedly emerged as an attractive destination for international investment, with foreign direct investment (FDI) inflows in 2021-22 at an all-time high of $83.5 billion. However, as of October 2022, none of the top 50 Fortune 500 companies have chosen to locate their Asia-Pacific headquarters in the country. No Indian city has found its way into the 15 most significant global financial centres expected by 2024, or even the top 10 list of Asia-Pacific cities of the future. Singapore and China (though less so in recent times) remain preferred destinations for global conglomerates. As India sets its sights on becoming a global financial hub, it can benefit from emulating the investor-friendly business environment of its Asian competitors. In particular, India stands to gain from liberalizing its stringent income tax laws for foreign nationals.