While the concept of lifetime employment is being eradicated in many countries that once espoused the idea, many workers for large companies in India expect not only lifetime employment, but employment in perpetuity. Under employment in perpetuity, when a worker retires, his job goes to a nominee, usually his son or relative. As a result, only about 3 percent of the economically active population is employed in private firms with more than 10 employees. Similar to the complex labor market, India's tax system mirrors the complexity and corruption within India. However, the economic reforms of the 1990s have been accompanied by tax reforms including simplified procedures, reduced excise taxes, and tax incentives.
Tax incentives exist for setting up new industries and for exporting and earning foreign exchange.
For example, foreign oil firms have been granted tax breaks to further develop India's oil industry. India has targeted industries that will have the greatest impact on its development. According to the Trade Development Alliance of Greater Seattle, other sectors that can benefit from trade with India include aerospace, telecommunications, financial services, power and energy, environmental technologies, food processing and agriculture. While India has its challenges, it presents a great deal of opportunity. Dick Moxon at University of Washington sees India as having some excellent potential partners for Northwest businesses.