ROUND TRIPPING – INDIAN DILEMMA AND INTERNATIONAL PERSPECTIVE

Author – SURYA SRIRAM, STUDENT AT BENNETT UNIVERSITY

Best Citation – SURYA SRIRAM, ROUND TRIPPING – INDIAN DILEMMA AND INTERNATIONAL PERSPECTIVE, Indian Journal of Legal Review (IJLR), 3 (2) of 2023, Pg. 10-17, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

Round-tripping is a phenomenon where funds are routed back to their country of origin through various mechanisms, often to take advantage of tax benefits and other regulatory arbitrage. In India, round-tripping has been a persistent issue, with significant implications for the economy, financial stability, and credibility of the financial sector. This law research paper provides a comprehensive analysis of round-tripping from an Indian perspective and explores international perspectives on the issue. The paper examines the legal and regulatory framework governing round-tripping in India and highlights the challenges faced by policymakers and regulators in addressing the issue. The research paper illustrates several measures taken to curb round-tripping, including relaxation of the existing restrictions on overseas direct investment (ODI) and foreign direct investment (FDI) by Indian parties and the adoption of a coordinated global approach to combat round-tripping.