Many of the journalists interviewing prospective investors in US have been suggesting that investor’s are concerned about the laws in India some of which are archaic (eg labour and land laws) and some are whimsical (retrospective taxation). Investors are also concerned with the lack of business oriented Governance.
As a solution to these concerns I suggested the creation of one new law providing for setting up of “International City Zone” . I am not advocating here a real estate project with high rise buildings etc though they could also be a part of the scheme. What I am advocating is creating a new City which is Governed by the investors themselves with whatever laws are necessary to make the city a self sufficient economic entity. The city will make its own labour laws, tax laws etc with the sole objective of promoting business in this zone from which goods and services can be exported both to other parts of India and abroad. It will be a free trade zone with ability to source inputs from the globe.
The scheme would only mandate payment of a certain percentage of revenue turnover to India as royalty. Some other aspects have already been outlined in the previous article. Other issues can be discussed and sorted out.
I hope the suggestions would be given a due consideration.
Naavi
