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