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India and RCEP
Why is it in the news ?
- In the final phase of negotiations in Vietnam, India has accepted suggestions of other countries regarding rules on investments.
- India has not yet signed the Regional Comprehensive Economic Partnership (RCEP) agreement.
More in the news
- India has so far agreed to several provisions that bring it in line with the investment rules applicable in most comparable countries.
- It includes:
- Banning host countries from mandating that the investing companies transfer technology and training to their domestic partners.
- Removing the cap on the quantum of royalties domestic companies can pay their foreign partners.
- If the RCEP agreement is signed, these rules are expected to attract greater investment in India from the other 15 RCEP countries.
- Indian laws currently have the provision wherein companies investing in the country can be made to transfer technology to their domestic counterparts.
- The government and RBI currently impose a cap on the royalties a domestic company can pay to its foreign parent or partner.
Source
The Hindu.