“The Taxman Cometh”
In the September 1 edition of CFO Magazine, Booz & Company Partner Vikas Sehgal (North America) said that efforts by the Indian Government to extract more tax revenue from foreign business has caused some companies to look elsewhere. Some foreign companies with businesses in India are considering locations such as Eastern Europe and Mexico, he said. Meanwhile, other factors such as the strengthening rupee, the dollar’s recent decline and rapidly rising labor rates make India even more expensive for foreign clients. “To survive, Indian firms will need a very clear value proposition, backed up by experience and manpower,” said Sehgal.