Satvik Varma
Satvik Varma, a renowned lawyer, an opinion maker in local media and future leader of India, discussed the legal framework and its essential elements for internationalisation in India on Thursday the 19th of September at CaixaForum Barcelona during a seminar organised by the Spain-India Council Foundation and the Barcelona Chamber of Commerce.
Varma addressed the issue from a macro level, presenting the Indian legal and judicial framework, as well as a micro level, discussing the concrete legal aspects to internationalisation in India. Using the image of an onion, he esteemed that patience is needed when investing in India; the layers need to be removed one by one but in the end the taste is sweet. Indeed the sheer growth of India’s internal market confirms just that.
On the legal protection of country investments, Satvik Varma asserted that rule of law governs in India. The Asian country has the longest constitution in the world, inspired by British legal and judicial values. Although it is said that it can take decades to resolve a legal claim in India, Varma emphasised that a special procedure exists for commercial and corporate cases. Regulated since 1996, the conciliation and arbitration system constitutes a fast track to speedy justice.
Regarding laws, the Indian lawyer highlighted that, along with legislation from the Union Government, legislation from state governments and municipal regulations also need to be taken into account, which may complicate the understanding of laws applicable in each subject. Nevertheless, this complex system has certain advantages, such as, for example, strong regulation of intellectual protection. This comes as an added value for India when compared to its developing neighbour, China. Likewise, competition regulations in India are solid under the protection of the Competition Law.
During his speech at the seminar, Satvik Varma further explained to attendees that not all investments in India require approval from the government. Certain sectors considered important for the country’s economy such as defence or telecommunications need approval; however, for all other sectors a fast track exists, and this is precisely where Spanish investment interests lie. Furthermore, Varma confirmed the substantial changes the regulation of investment restrictions is undergoing, insofar that it can now be said that India is open to investment. The Indian expert indicated the infrastructure sector as receiving the highest investment from Spain. Currently, large projects are underway and it is precisely in this area where the country is in great need. Spanish companies are also creating a foothold in biotechnology, the textile sector and cinema.
With regards to the possibilities for establishing companies in India, he confirmed the existence of a range of options adapting to the needs of foreign companies. Satvik Varma pointed out that processing times have been significantly reduced, although improvements still need to be made in terms of time and procedure.
According to Varma, the advantages of the Indian market are the unstoppable growth of its inner market, its young English-speaking workforce with university educations and entrepreneurship and the democracy and rule of law in India. Moreover, he placed importance on understanding the country so as to avoid stereotypes and to successfully engage in business. Varma concluded his speech by encouraging Spanish companies to discover and invest in business opportunities in India. Furthermore, he mentioned that with the upcoming elections, the next few months will be very interesting for foreign investors in the Asian country as these could bring about changes.
During his stay in Spain, Satvik Varma also participated in meetings with students in IE Business School Madrid and ESADE Business School Barcelona as well as institutional meetings with the Ministry of Foreign Affairs and Cooperation, Elcano Royal Institute and the Embassy of India in Madrid.
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