Even without a registered office in India, foreign companies are allowed to start multimodal transport services in India. The peak custom duty rate was reduced to 50 percent from 65 percent in the March 1995 budget. Currently, there are no investment disputes over expropriation or nationalization. Government demands for penalty payments for alleged overcharging by pharmaceutical companies during the 1980's could lead to de-facto expropriation of some foreign drug companies' assets in India. In pharmaceutical sector A committee has been named to study these longstanding disputes, but the failure of successive governments to produce a swift and transparent resolution has led to a virtual standstill in foreign investment in India's pharmaceutical sector.
Indian courts provide adequate safeguards for the enforcement of property and contractual rights.
However, case backlogs frequently lead to long procedural delays. India is not a member of the International Center for the Settlement of Investment Disputes, nor of the New York Convention of 1958.