Question: My two children will complete their higher school education in the next three years. I am thinking about their university admissions having regard to the quality of education and the costs involved. Are Indian universities worth considering for this purpose?
ANSWER: According to the QS World University Rankings: Sustainability 2026, India has 103 universities listed and occupies the fourth position globally. QS Methodology for world university rankings is based on university performance across three categories. The first is environmental impact which is based on three indicators, namely, environmental sustainability, environmental education and environmental research. The second is based on social impact which covers five indicators: equality, knowledge exchange, impact of education, employability, and health and well-being. The third category is based on governance which covers ethics, hiring practices, transparency and decision making.
Close to half of India’s universities in the rankings improved their score in environmental education this year. Overall, Indian universities excel in knowledge exchange and environmental sustainability. The role of higher education in the fight against climate change is highlighted in these rankings. Undoubtedly, Indian universities are more affordable in terms of educational costs compared to those in the West.
Question: On returning to India, I would like to set up a medium enterprise for manufacturing furniture. I have read in the press that some reforms have been announced recently by a Government committee. Can you throw some light on the proposed measures?
ANSWER: Your information is correct that certain recommendations have been recently made by a high level committee with the object of easing regulatory and financial pressures on micro, small and medium enterprises. The key recommendations pertain to credit access, payment dispute resolution mechanism, compliance under the Companies Act and simplification of tax processes. The committee has provided timelines for implementing these reforms with a view to significantly improve the business environment for MSMEs. In order to improve access to credit facilities, the panel has proposed expanding the Credit Guarantee Fund Trust which would thereafter extend benefits to medium enterprises which are in the business of manufacturing. For ensuring that payment disputes are resolved, and liquidity is provided to the enterprises pending the dispute resolution, it is being made mandatory for deposit of 75% of the arbitral award value, pending the disposal of the appeal filed against such award. Appointment of a sole arbitrator has been suggested to accelerate resolution of disputes.
At present, corporate social responsibility obligations are imposed based on net worth, turnover and net profit thresholds. The panel has recommended granting of exemption to all micro and small companies from the CSR obligations under the Companies Act. To ensure simplification of tax processes, the requirement of tax audit under the income-tax law has been relaxed to Rs.20 million as against Rs.10 million of gross receipts applicable at present. Further, the revenue department has been advised to reduce penalties for minor errors under the GST law which have been committed by micro enterprises and to reduce the interest rate on outstanding dues.
HP Ranina is a practising lawyer, specialising in corporate and tax laws of India.
Question: My brother in India is a real estate developer who is constructing luxury apartment buildings as well as those under the affordable housing scheme framed by the Government. Is it possible for him to access the international market for raising loans to finance his Indian projects?
ANSWER: Last month, the Reserve Bank of India announced that it proposes to relax guidelines for the real estate sector to enable developers to access offshore loans. External Commercial Borrowings (ECBs) are to be permitted only for real estate projects which are compliant with foreign direct investment rules. ECBs will not be permitted for trading in land or property or for speculative purposes. The calibration of the ECB framework is a positive step in India’s financial evolution grounded in strong fundamentals and guided by prudence. The draft guidelines propose to increase the limit for ECBs by linking it to the borrower’s net worth. Further, the guidelines propose to remove the interest rate (all-in-cost) ceiling, expand the group of eligible lenders as well as borrowers, provide flexibility for using the funds, and ease maturity and repayment conditions.
According to the Governor of the Reserve Bank of India, expansion of the universe of eligible lenders will improve pricing efficiency. Linking the borrowing limits to the borrower’s net worth will ensure that the ECBs are linked to the financial worth of the borrower. RBI has now set an aggregate fund limit for borrowers and banks would be subjected to penalties if the limits are crossed. The all-in-cost ceiling on ECB loans has been removed to encourage competitive rates and promote prudent hedging behaviour.
The writer is a practising lawyer, specialising in corporate and fiscal laws of India