Asia Briefing’s India Focused Regulatory and Operational Business Updates

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August 27, 2026

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Weekly business and foreign investment news roundup in Asia

by Asia Briefing and Dezan Shira & Associates (An Ascentium Company).

INDIA EDITION

TOP STORIES THIS WEEK:

India’s Taxation and Other Laws (Amendment) Act 2026: Key Tax Reliefs for Investors

The Taxation and Other Laws (Amendment) Act 2026 introduces targeted tax reliefs for foreign investment funds, electronics manufacturing, government securities, and bonded-warehouse arrangements in India. The amendments also revise data centre provisions and SPV tax treatment, creating new planning considerations.

Maintaining Food Processing Quality Standards in India Amid FSSAI Crackdown

India’s food-safety authorities have intensified enforcement in 2026, with recent action involving notices, product seizures, and licence suspensions across food companies, hotels, and restaurants. For food processors, compliance extends beyond product quality to hygiene, processing, labelling, advertising, storage, testing, and traceability, with violations potentially resulting in penalties, recalls, licence action, or prosecution.

Establishing a BIS-Recognised Testing Facility in India for Foreign Companies

India’s BIS Laboratory Recognition Scheme (LRS) enables eligible laboratories to support BIS conformity-assessment activities for specified Indian Standards, including laboratories operated outside India. For foreign testing companies, the framework provides an opportunity to establish a testing facility in India or seek BIS recognition for an existing overseas laboratory.

Setting Up in India? Why Data Centre Colocation Should Be Part of Your Strategy

India’s 2026 tax framework provides an exemption for specified income of foreign companies procuring data centre services from qualifying Indian facilities, available from 1 April 2026 through the tax year ending 31 March 2047. The amendments also remove separate notification requirements for eligible foreign companies and data centres and recognise qualifying facilities operated by Indian companies through lease arrangements.

Appointing an Indian National as a Director of a Foreign Company: FEMA and Tax Considerations

Indian nationals can generally serve as directors of foreign companies, but the appointment may have implications under the Foreign Exchange Management Act (FEMA) 1999, India’s overseas investment regulations, and Indian tax laws where the individual is resident in India. The treatment depends on factors such as foreign shareholdings, director remuneration, and activities performed from India.

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COMPLIMENTARY BUSINESS RESOURCES:

An Employer’s Guide to Wage, Payroll, and HR Compliance in India in 2026

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