INDIA: Indian market continues down road to liberalisation
The Indian Ministry of Industry has decided to end the dividend balancing requirements for foreign liquor companies. The requirements are part of the export obligation commitments undertaken by any foreign drinks company operating in India.Industry sources also said that the government was considering to scrap export obligations altogether as part of the on-going liberalisation of the industry.Reports from the Ministry suggest that the government will announce next week its plans to finish with dividend balancing requirements because its forex reserves are at a comfortable level and the earnings from liquor companies are no longer required.Certain sectors of the Government also believes the harsh export obligations are stifling the growth of the drinks industry in India.Under current rules liquor multi-nationals are required to balance the outgo of dividends within seven years of operation to the parent company with imports of raw material and technology.The end to this rule will benefit the likes of Seagram, Pernod Ricard, Bacardi and UDV all of whom operate in India. However, Albert Elgrissy of Pernod Ricard's Indian operations said the move was a minor development."What would be clinching for the trade is the removal of export obligations altogether," he said.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 17 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- Interview - Pernod Ricard's luxury director
- What's coming up in wine in 2017? - Comment
- Chile's winemakers caught out by Brexit "disease"
- The just-drinks Analyst - 2017 forecasts
- The Cognac Category - Everything you need to know
- Diageo Australia names new commercial head
- Edrington readies Americas, GTR exec switches
- Suntory sends staff to fat camp - report
- High-end Cognac making recovery in China - Pernod
- "Beer and weed are complements" - analyst
- The Next Seven Big Beverage Markets
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Darker Than Before: Global Prospects for Brown Spirits
- Global gin insights - market forecasts, product innovation and consumer trends