No, even clarified it in next reply, anyway serve no purpose to drag it.
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Covid-19 impact: MNCs look to exit, renegotiate advance pricing agreements
By SACHIN DAVE
ET Bureau, Updated: Apr 29, 2020, 07.54 AM IST
Mumbai: With margins under pressure due to Covid-19 led business discontinuity, multinationals are looking to exit or renegotiate Advance Pricing Agreements (APAs), the tool used by the taxman to reduce transfer pricing disputes. Many multinationals and captive centres of transnationals have reached out to tax experts seeking a legal opinion on how they can exit or renegotiate APAs signed with Indian tax authorities.
The APAs dictate the pricing mechanism or margins to be maintained while dealing with overseas parent or another group entity. At a time when the margins across industries are under pressure, maintaining the pre-decided margins under APA and paying tax on it could pose to be a challenge in the current environment, say tax experts.
“Foreign related parties may like to renegotiate margins and for the Indian entities to bear more risk and consequently take a hit on their margins. Lately, there has been a tendency to categorise Indian units as low risk service providers/distributors and report profits on-year which may undergo a change for the current financial year and possibly even the next one,” said Amit Maheshwari, partner, AKM Global.
As a transfer pricing mechanism, APA has had a great run in last seven years and about 300 of those were signed by the Central Board of Direct Taxes (CBDT) with leading globocorps. Many multinationals have started approaching lawyers to see how exactly they can exit or renegotiate these contracts.
“For any contract there is always an exit clause and many multinationals that had entered APAs would look at those. Either the government can come out with some leeway around those or the multinationals may have to again renegotiate the APAs due to Covid-19 situation,” said Amit Singhania, partner at Shardul Amarchand Mangaldas.
India has used APAs to reduce transfer pricing disputes.
Transfer pricing is essentially the price paid by the parent company or its foreign arm to a local subsidiary for transactions between in-house entities.
In most cases, the local entity charges a mark-up at arm’s length, or at a price as per industry average for transactions between group companies.
Covid-19 impact: MNCs look to exit, renegotiate advance pricing agreements
By SACHIN DAVE
ET Bureau, Updated: Apr 29, 2020, 07.54 AM IST
Mumbai: With margins under pressure due to Covid-19 led business discontinuity, multinationals are looking to exit or renegotiate Advance Pricing Agreements (APAs), the tool used by the taxman to reduce transfer pricing disputes. Many multinationals and captive centres of transnationals have reached out to tax experts seeking a legal opinion on how they can exit or renegotiate APAs signed with Indian tax authorities.
The APAs dictate the pricing mechanism or margins to be maintained while dealing with overseas parent or another group entity. At a time when the margins across industries are under pressure, maintaining the pre-decided margins under APA and paying tax on it could pose to be a challenge in the current environment, say tax experts.
“Foreign related parties may like to renegotiate margins and for the Indian entities to bear more risk and consequently take a hit on their margins. Lately, there has been a tendency to categorise Indian units as low risk service providers/distributors and report profits on-year which may undergo a change for the current financial year and possibly even the next one,” said Amit Maheshwari, partner, AKM Global.
As a transfer pricing mechanism, APA has had a great run in last seven years and about 300 of those were signed by the Central Board of Direct Taxes (CBDT) with leading globocorps. Many multinationals have started approaching lawyers to see how exactly they can exit or renegotiate these contracts.
“For any contract there is always an exit clause and many multinationals that had entered APAs would look at those. Either the government can come out with some leeway around those or the multinationals may have to again renegotiate the APAs due to Covid-19 situation,” said Amit Singhania, partner at Shardul Amarchand Mangaldas.
India has used APAs to reduce transfer pricing disputes.
Transfer pricing is essentially the price paid by the parent company or its foreign arm to a local subsidiary for transactions between in-house entities.
In most cases, the local entity charges a mark-up at arm’s length, or at a price as per industry average for transactions between group companies.
Covid-19 impact: MNCs look to exit, renegotiate advance pricing agreements
US supports firms weighing India as alternative to China
Modi is learnt to have asked states to roll out red carpet for firms exiting Beijing.
By Gulveen Aulakh
Last Updated: Apr 29, 2020, 03.48 PM IST
NEW DELHI: India could emerge as an alternative investment destination for US companies doing business in China in the aftermath of the Covid-19 pandemic, a view that the US government’s Department of State is supporting.
In a meeting held last week between a senior official of the US Department of State and representatives of large American companies operating in India, through the American Chamber of Commerce in India, the importance of India as a potential destination for businesses shifting from China was underlined.
“India can quickly become a favourable jurisdiction for more of the industrial activities that are happening currently in China,” Thomas Vajda, assistant secretary of state for South Asia in the US Department of State, is learnt to have told representatives who attended the virtual meeting.
Representatives of several US-based companies have also been advised to propose to the Indian government to offer incentives that would facilitate proliferation of US businesses in India, thus creating aready environment for more businesses to come to the country. “Government relations between the two countries will be supportive,” Vajda is learnt to have said. ET spoke to three people who attended the meeting but they did not want to be named as the meeting was confidential.
The US embassy spokesperson in New Delhi declined to comment on the matter. The American Chamber of Commerce in India did not respond to ET's detailed query as of Tuesday. The move would be well timed with the Indian government developing strategies to attract investment from overseas, including that coming out from China. Sources said that the Department for Promotion of Industry and Internal Trade (DPIIT) has set up a committee of joint secretaries from across ministries and other departments to reach out to the industry and seek comments.
On Monday, Prime Minister Narendra Modi is learnt to have asked state chief ministers to explore possibility of attracting investments from companies exiting from China and that they should have ready strategies to welcome industries on a state-level.
The government wants to get more investment into India, with ministries such as road transport, highways and MSMEs eager to fast track permissions to companies wanting to shift their operations from China to India.
US supports firms weighing India as alternative to China
Modi is learnt to have asked states to roll out red carpet for firms exiting Beijing.
By Gulveen Aulakh
Last Updated: Apr 29, 2020, 03.48 PM IST
NEW DELHI: India could emerge as an alternative investment destination for US companies doing business in China in the aftermath of the Covid-19 pandemic, a view that the US government’s Department of State is supporting.
In a meeting held last week between a senior official of the US Department of State and representatives of large American companies operating in India, through the American Chamber of Commerce in India, the importance of India as a potential destination for businesses shifting from China was underlined.
“India can quickly become a favourable jurisdiction for more of the industrial activities that are happening currently in China,” Thomas Vajda, assistant secretary of state for South Asia in the US Department of State, is learnt to have told representatives who attended the virtual meeting.
Representatives of several US-based companies have also been advised to propose to the Indian government to offer incentives that would facilitate proliferation of US businesses in India, thus creating aready environment for more businesses to come to the country. “Government relations between the two countries will be supportive,” Vajda is learnt to have said. ET spoke to three people who attended the meeting but they did not want to be named as the meeting was confidential.
The US embassy spokesperson in New Delhi declined to comment on the matter. The American Chamber of Commerce in India did not respond to ET's detailed query as of Tuesday. The move would be well timed with the Indian government developing strategies to attract investment from overseas, including that coming out from China. Sources said that the Department for Promotion of Industry and Internal Trade (DPIIT) has set up a committee of joint secretaries from across ministries and other departments to reach out to the industry and seek comments.
On Monday, Prime Minister Narendra Modi is learnt to have asked state chief ministers to explore possibility of attracting investments from companies exiting from China and that they should have ready strategies to welcome industries on a state-level.
The government wants to get more investment into India, with ministries such as road transport, highways and MSMEs eager to fast track permissions to companies wanting to shift their operations from China to India.
US supports firms weighing India as alternative to China
After COVID–19: Manufacturing India’s New Economic Potential
The disruption from COVID-19 may offer India the opportunity to reinvent itself as a manufacturing powerhouse.
By Akshobh Giridharadas and Vaman Desai
April 29, 2020
The COVID-19 pandemic has been unprecedented on many counts pertaining to public health, national security, and the global economy. Not since the Spanish Flu of 1918 has a pandemic brought economic powerhouses to such a standstill.
Even in its initial stages, when COVID-19 was myopically perceived as a China-specific problem, it was still a global conundrum — for as the finance adage goes, when China sneezes, the rest of the world catches a cold, alluding to China’s position as the factory of the world.
When supply chains in China are disrupted that means supply chains around the world are disrupted. An eclectic mix of companies have been extraordinarily affected as production and distribution networks have gone awry.
But in the midst of this pandemic, as industries stall, there could be another form of disruption, in the sense used in Silicon Valley to signify the winds of change. What winds of change blow toward India ?
Narendra Modi’s ascent to power in 2014 and the grand launch of the “Make in India” manufacturing initiative was seen as the coming-of-age of India’s manufacturing potential.
While the initiative can be credited for its ambitious approach, it has been broad-based and lacked policy focus. As India progressed from an agrarian economy to services in the 1990s, the economy skipped the vital manufacturing component that made China the factory of the world.
Though Make in India sought to pitch India as an alternative manufacturing destination to China, a wide-ranging projection of 25 varied sectors, ranging from leather to space, for investment meant emphasis on the big picture at the cost of more specific sectoral details.
Furthermore, the policy has not adequately factored in India’s comparative advantages. As a result, Vietnam and Bangladesh have made the most of arising manufacturing opportunities, particularly as manufacturing costs in China increased as Beijing moved to more of a consumption-driven economy.
The Setting
China has found itself facing global scrutiny since the then-epidemic, now-pandemic erupted in Wuhan, both for its delay in not alerting the world community about its severity as soon as possible and for admonishing doctors and journalists, who served as harbingers of the pandemic.
With the ongoing trade disputes before the COVID-19 outbreak, Washington and Beijing have continuously locked horns. These developments have accelerated global firms’ strategic plans to diversify manufacturing bases away from China, as a way of insuring against supply chain disruptions. Asian economic powers have begun to announce incentives to move production out of China too, with Japan even earmarking a $2.2 billion fund to encourage manufacturers to do just that.
India’s expanding economy and robust middle class provides a lucrative market while its abundant skilled and semi-skilled labor adds to the country’s ability to support bulk manufacturing, assembly, and processing.
Furthermore, India’s overlooked eastern coast is strategically placed to connect with Asia-Pacific markets, an advantage to optimize supply chains and minimize transportation costs.
In addition, India’s cost advantages come alongside its democratic fabric, with an emphasis on transparency and rules-based international order. India’s willingness to meet its supplier obligations without weaponizing trade provides the global business community with predictability and fair trade.
So how can New Delhi capitalize on these advantages and opportunities? The government of India should adopt a phased strategy, prioritizing several immediate, medium, and long-term components.
Get down to brass tacks :
In the near term, the government should announce eye-catching schemes to invite companies to manufacture in India’s eastern coast and traditional manufacturing clusters. To set the right tone, government should establish effective communication through business-friendly channels to convey easy availability of land in mega special economic zones (SEZs), ready-to-move-in facilities, sector-specific business-friendly regulations, a simple labor code, tax breaks, and other incentives aimed at bringing its manufacturing competitiveness on par with the most competitive destinations in Asia.
Target the low-hanging fruits :
India should aim at targeting low-hanging fruits in the next six-to-eight months, winning major investment deals in sectors where the economy has domestic supply chains. Moving up the value chain is far easier when there is an underlying ecosystem. Targets could include pharmaceuticals, mobile phones, machinery, and other sectors where there is a robust network of small and medium-sized enterprises (SMEs). These rapid early successes will set the momentum in attracting subsequent mega manufacturing investments in other sectors.
Strengthen long-term commercial diplomacy :
For the rest of his second term, Modi should place a special emphasis on India’s commercial diplomacy, expanding diplomatic strength in key missions to engage business leaders with increased vigor. Often, India’s commercial offices in prominent missions are understaffed. To this end, the government should enable the lateral entry of some of India’s best private sector professionals with sectoral and negotiating expertise into the diplomatic corps. India should have its best commercial diplomats in friendly capitals like Washington, D.C., Tokyo, Seoul, and Singapore and in missions to important commercial cities, including San Francisco and Osaka, to reinforce India’s position as the next big manufacturing destination.
Can India ‘Make’ It ?
It is usually said that India reforms with a crisis, as it did in 1991 with the Balance of Payments crisis. While the economy this time around is in a much better state, the Modi government has a chance to leverage the changing geopolitical tide to catapult India’s manufacturing.
Shortly after the 1991 reforms, a popular song “Made in India” was released by Alisha Chinai; it became a sensation that gave birth to Indi-pop and sold more than 5 million copies. It’s time to rechristen the “Made in India” reference from music to manufacturing and give rise to new industries and create millions of new jobs. Therein lies the hope for India.
Akshobh Giridharadas and Vaman Desai are Directors at BowerGroupAsia based in Washington DC. They advise clients on political and economic risk and strategic market entry in the Asia-Pacific region.
After COVID–19: Manufacturing India’s New Economic Potential
The disruption from COVID-19 may offer India the opportunity to reinvent itself as a manufacturing powerhouse.
By Akshobh Giridharadas and Vaman Desai
April 29, 2020
The COVID-19 pandemic has been unprecedented on many counts pertaining to public health, national security, and the global economy. Not since the Spanish Flu of 1918 has a pandemic brought economic powerhouses to such a standstill.
Even in its initial stages, when COVID-19 was myopically perceived as a China-specific problem, it was still a global conundrum — for as the finance adage goes, when China sneezes, the rest of the world catches a cold, alluding to China’s position as the factory of the world.
When supply chains in China are disrupted that means supply chains around the world are disrupted. An eclectic mix of companies have been extraordinarily affected as production and distribution networks have gone awry.
But in the midst of this pandemic, as industries stall, there could be another form of disruption, in the sense used in Silicon Valley to signify the winds of change. What winds of change blow toward India ?
Narendra Modi’s ascent to power in 2014 and the grand launch of the “Make in India” manufacturing initiative was seen as the coming-of-age of India’s manufacturing potential.
While the initiative can be credited for its ambitious approach, it has been broad-based and lacked policy focus. As India progressed from an agrarian economy to services in the 1990s, the economy skipped the vital manufacturing component that made China the factory of the world.
Though Make in India sought to pitch India as an alternative manufacturing destination to China, a wide-ranging projection of 25 varied sectors, ranging from leather to space, for investment meant emphasis on the big picture at the cost of more specific sectoral details.
Furthermore, the policy has not adequately factored in India’s comparative advantages. As a result, Vietnam and Bangladesh have made the most of arising manufacturing opportunities, particularly as manufacturing costs in China increased as Beijing moved to more of a consumption-driven economy.
The Setting
China has found itself facing global scrutiny since the then-epidemic, now-pandemic erupted in Wuhan, both for its delay in not alerting the world community about its severity as soon as possible and for admonishing doctors and journalists, who served as harbingers of the pandemic.
With the ongoing trade disputes before the COVID-19 outbreak, Washington and Beijing have continuously locked horns. These developments have accelerated global firms’ strategic plans to diversify manufacturing bases away from China, as a way of insuring against supply chain disruptions. Asian economic powers have begun to announce incentives to move production out of China too, with Japan even earmarking a $2.2 billion fund to encourage manufacturers to do just that.
India’s expanding economy and robust middle class provides a lucrative market while its abundant skilled and semi-skilled labor adds to the country’s ability to support bulk manufacturing, assembly, and processing.
Furthermore, India’s overlooked eastern coast is strategically placed to connect with Asia-Pacific markets, an advantage to optimize supply chains and minimize transportation costs.
In addition, India’s cost advantages come alongside its democratic fabric, with an emphasis on transparency and rules-based international order. India’s willingness to meet its supplier obligations without weaponizing trade provides the global business community with predictability and fair trade.
So how can New Delhi capitalize on these advantages and opportunities? The government of India should adopt a phased strategy, prioritizing several immediate, medium, and long-term components.
Get down to brass tacks :
In the near term, the government should announce eye-catching schemes to invite companies to manufacture in India’s eastern coast and traditional manufacturing clusters. To set the right tone, government should establish effective communication through business-friendly channels to convey easy availability of land in mega special economic zones (SEZs), ready-to-move-in facilities, sector-specific business-friendly regulations, a simple labor code, tax breaks, and other incentives aimed at bringing its manufacturing competitiveness on par with the most competitive destinations in Asia.
Target the low-hanging fruits :
India should aim at targeting low-hanging fruits in the next six-to-eight months, winning major investment deals in sectors where the economy has domestic supply chains. Moving up the value chain is far easier when there is an underlying ecosystem. Targets could include pharmaceuticals, mobile phones, machinery, and other sectors where there is a robust network of small and medium-sized enterprises (SMEs). These rapid early successes will set the momentum in attracting subsequent mega manufacturing investments in other sectors.
Strengthen long-term commercial diplomacy :
For the rest of his second term, Modi should place a special emphasis on India’s commercial diplomacy, expanding diplomatic strength in key missions to engage business leaders with increased vigor. Often, India’s commercial offices in prominent missions are understaffed. To this end, the government should enable the lateral entry of some of India’s best private sector professionals with sectoral and negotiating expertise into the diplomatic corps. India should have its best commercial diplomats in friendly capitals like Washington, D.C., Tokyo, Seoul, and Singapore and in missions to important commercial cities, including San Francisco and Osaka, to reinforce India’s position as the next big manufacturing destination.
Can India ‘Make’ It ?
It is usually said that India reforms with a crisis, as it did in 1991 with the Balance of Payments crisis. While the economy this time around is in a much better state, the Modi government has a chance to leverage the changing geopolitical tide to catapult India’s manufacturing.
Shortly after the 1991 reforms, a popular song “Made in India” was released by Alisha Chinai; it became a sensation that gave birth to Indi-pop and sold more than 5 million copies. It’s time to rechristen the “Made in India” reference from music to manufacturing and give rise to new industries and create millions of new jobs. Therein lies the hope for India.
Akshobh Giridharadas and Vaman Desai are Directors at BowerGroupAsia based in Washington DC. They advise clients on political and economic risk and strategic market entry in the Asia-Pacific region.
After COVID–19: Manufacturing India’s New Economic Potential
Does anybody else feel all these articles are just a fancy way of saying : "Give us a tax break", or is it just me ?
I don't see many companies moving to India. Any hopes of mass migrations are just hopes.
THREAD!!
An excellent write up on how the government can facilitate manufacturing in India especially given the fallout of the Chinese virus & India's plans of emerging as a global manufacturing hub.
Should we do it?
Of course, yes.
Will we do it?
Of course, no.
there is enough land for these manufacturers to set up there manufacturing unit. If they really want to. If these people want to grab public or farmer land and sell it back on a higher price that's a different thing all together. We have seen in past how these so called manufacturers stole land from poor people specially farmers in name of development only to resell them back to govt at higher price for property development and other BS while politicians get there hafta in dalali.
‘Google tax’ could draw reprisal, US cautions India
US also marked a slew of issues in India’s digital trade including those in the e-commerce policy.
By Kirtika Suneja
Last Updated: Apr 28, 2020, 08.32 AM IST
India permits 100% FDI in business-to-business or market place based e-commerce, but prohibits foreign investment in business-toconsumer or inventory-based online trade. Photo : Getty Images.
New Delhi: India’s 6% equalisation levy on foreign online advertising platforms may impede its overseas trade and increase the risk of retaliation from countries where Indian companies are doing business, the US has cautioned. This is because its provisions do not provide credit for tax paid in other countries for the service provided in India, it said.
In its latest report on trade barriers, the US also marked a slew of issues in India’s digital trade including those proposed in the draft e-commerce policy, such as data localisation requirements, restrictions on cross-border data flows, expanded grounds for forced transfer of intellectual property and proprietary source code, and preferential treatment for domestic digital products. Washington said it “strongly encourages India to reconsider this draft policy”.
On the equalisation levy, or the so-called ‘Google tax’, it said the current structure of the tax represented a shift from internationally accepted principles, which provided that digital taxation mechanisms should be developed on a multilateral basis to prevent double taxation.
Tariff Too High’
The equalisation levy was first imposed in 2016 to tax companies such as Google, Facebook and Netflix on their online advertising. This year, India expanded its scope to all overseas e-commerce transactions originating from India.
On the issue of India’s foreign direct investment (FDI) rules in e-commerce, the US said the only exceptions for FDI in inventory based e-commerce were for food product retailing and single-brand retailers that met certain conditions. This “narrow exception limits the ability of many electronic commerce service suppliers to serve the Indian market”, it said.
India permits 100% FDI in business-to-business or market place based e-commerce, but prohibits foreign investment in business-to consumer or inventory-based online trade.
New Delhi and Washington have been negotiating a trade deal for more than a year with ministers and officials of both countries discussing the issues at various domestic and global fora.
In the April-January period of 2019-20, India’s exports to the US were $44.7 billion, while imports were $30.5 billion. In the previous fiscal year ended March 2019, India’s trade surplus with the US had reduced to $16.8 billion from $21.2 billion in 2017-18.
MAKE IN INDIA, GOODS TRADE
The US said it had actively sought bilateral and multilateral opportunities to increase access to India’s market, but American exporters continued to encounter significant tariff and non-tariff barriers that impeded imports of US products into India, especially dairy, poultry and highly specialised equipment.
It said India imposed “onerous requirements” on dairy imports and insisted that they be derived from animals that had never consumed any feeds containing internal organs, blood meal, or tissues of ruminant origin, based on religious and cultural grounds.
To address these concerns, Washington, in 2015 and 2018, proposed labelling the products with details of their origin so that the consumer could make a choice, but India rejected it, as per the report.
The US said it continued to press India to provide access to the dairy market and is also monitoring market access issues related to poultry, such as “unnecessary” testing requirements.
‘Google tax’ could draw reprisal, US cautions India
US also marked a slew of issues in India’s digital trade including those in the e-commerce policy.
By Kirtika Suneja
Last Updated: Apr 28, 2020, 08.32 AM IST
India permits 100% FDI in business-to-business or market place based e-commerce, but prohibits foreign investment in business-toconsumer or inventory-based online trade. Photo : Getty Images.
New Delhi: India’s 6% equalisation levy on foreign online advertising platforms may impede its overseas trade and increase the risk of retaliation from countries where Indian companies are doing business, the US has cautioned. This is because its provisions do not provide credit for tax paid in other countries for the service provided in India, it said.
In its latest report on trade barriers, the US also marked a slew of issues in India’s digital trade including those proposed in the draft e-commerce policy, such as data localisation requirements, restrictions on cross-border data flows, expanded grounds for forced transfer of intellectual property and proprietary source code, and preferential treatment for domestic digital products. Washington said it “strongly encourages India to reconsider this draft policy”.
On the equalisation levy, or the so-called ‘Google tax’, it said the current structure of the tax represented a shift from internationally accepted principles, which provided that digital taxation mechanisms should be developed on a multilateral basis to prevent double taxation.
Tariff Too High’
The equalisation levy was first imposed in 2016 to tax companies such as Google, Facebook and Netflix on their online advertising. This year, India expanded its scope to all overseas e-commerce transactions originating from India.
On the issue of India’s foreign direct investment (FDI) rules in e-commerce, the US said the only exceptions for FDI in inventory based e-commerce were for food product retailing and single-brand retailers that met certain conditions. This “narrow exception limits the ability of many electronic commerce service suppliers to serve the Indian market”, it said.
India permits 100% FDI in business-to-business or market place based e-commerce, but prohibits foreign investment in business-to consumer or inventory-based online trade.
New Delhi and Washington have been negotiating a trade deal for more than a year with ministers and officials of both countries discussing the issues at various domestic and global fora.
In the April-January period of 2019-20, India’s exports to the US were $44.7 billion, while imports were $30.5 billion. In the previous fiscal year ended March 2019, India’s trade surplus with the US had reduced to $16.8 billion from $21.2 billion in 2017-18.
MAKE IN INDIA, GOODS TRADE
The US said it had actively sought bilateral and multilateral opportunities to increase access to India’s market, but American exporters continued to encounter significant tariff and non-tariff barriers that impeded imports of US products into India, especially dairy, poultry and highly specialised equipment.
It said India imposed “onerous requirements” on dairy imports and insisted that they be derived from animals that had never consumed any feeds containing internal organs, blood meal, or tissues of ruminant origin, based on religious and cultural grounds.
To address these concerns, Washington, in 2015 and 2018, proposed labelling the products with details of their origin so that the consumer could make a choice, but India rejected it, as per the report.
The US said it continued to press India to provide access to the dairy market and is also monitoring market access issues related to poultry, such as “unnecessary” testing requirements.
‘Google tax’ could draw reprisal, US cautions India
Most low end manufacturing will shift to SEA, Mexico and countries close to US. India doesn't need to be a manufacturing sweatshop crap hole
India future is in rural India. automation will automate most of the jobs in coming decades any way.
India future is in rural India. automation will automate most of the jobs in coming decades any way.
Thats right , we need value added manufacturing which also enhances our technology & capability as well. We dont need another garment factory like companies which needs to produce goods at cut throat prices for some MNC to make fat profits.
many reason from changing landscape of nature of jobs to maintaining social cohesion which has been shattered due to rural migration to big cities along with rapid urbanisation in both India and China in last few decades. many of these rural migrants have been taken away from there traditional family community support structure and have been pushed into an urban Chao's along with exploitation and no relief in site. reason for many violent protest and anger we see on street.
• maintaining demographics.
Kid in urban area is just another mouth to feed. Basically when a family move from rural to urban area....child stop being an asset and start being a liability.
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Naah, I believe you are thinking about either the Behrampada adjacent to Bandra Terminus (east and south to it) or the pocket between Pipeline road and western express Highway. Ours is only dharmic religious community area. My own society has Hindus from all across India, two family of Sikhs, one family of Jain and One Christian family as well.That's a dangerous muzzie area. Same where that incident happened....