India was recently labeled as the world’s sixth largest economy, narrowly beating out France. That said, India is also holds one of the world’s biggest populations and so it certainly has a lot of growing to do yet. That’s why entrepreneurs and corporations alike around the world are watching its potential for business ties in the future. But what should we know about economic laws on the books in India?
Some of the most important laws have been around since 1872, and we still need to watch out for them when doing business in or with the country. The Indian Contract Act of that year is responsible for outlining the rules and regulations that determine how a contract can be executed or enforced. Here are a few more!
The Workmen’s Compensation Act of 1923 determines how compensation is paid out to workers who were injured on the job.
The Payment of Wages Act of 1936 determined the minimum salary for those working in industrial occupations. The factories Act of 1948 went on to regulate the labor in similar occupations.
Mothers benefitted from the Maternity Benefits Act of 1961 which set limitations on time off from work during and after a child’s birth.
Bonuses are a regular part of Indian industries, but these payments are strictly regulated by the Payment of Bonus Act of 1965.
India restricted the growth of certain types of businesses with the Monopolies and Restrictive Trade Practices Act of 1969.
The Indian Patents Act of 1970 determines when a patent is or is not protected under law. The Copyright Act of 1975 does the same for copyright protections. Then there is the Trademarks Act of 1999 and the Designs Act of 2000.
Gratuities are regulated under the Payment of Gratuity Act of 1972.
Competition is becoming more and more important to the Indian economy, and so the Competition Act of 2002 led to the creation of a commission with a mandate to promote competition while protecting consumer interests by managing trade freedoms.
If you set your sights on business in India, then you have a lot of work to do. The laws overseeing economy in India are similar in nature, but different in practice. The devil is in the details, as they say.