India's Tax Plan Troubles Foreign Investors | White & Case LLP International Law Firm, Global Law Practice
India's Tax Plan Troubles Foreign Investors

India's Tax Plan Troubles Foreign Investors

As a result of new taxes in India's proposed budget, foreign investors are holding off on new deals and future investments in the country.

"There is an 'Oh, my God' factor," about the tax proposals, said Nandan S. Nelivigi, a partner at the law firm White & Case in New York who advises companies that do business in India. He said he knew of at least two foreign acquisition deals involving Indian firms that had been delayed while executives wait to see what happens with the tax measures.

"New deals — there is no question that they are on hold until the tax implications are clear," Mr. Nelivigi said.