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| The Limited Liability Partnership (PPL) Act 2008 was recently passed by Indian parliament, paving the way for firms to exercise greater control over internal management. Prior to the passage of the Act, Indian firms were limited by ordinary partnership regulations to a maximum of 20 partners. While small and medium domestic enterprises welcome the development, and the new framework was a necessary condition to level the playing field between Indian and international firms should they be allowed entry into the country, the passing of the Act may have little bearing on the issue of liberalisation of the market. Ultimately, market opening rests in the hands of the Indian government’s success in implementing further reforms, which is in turn dependent on the outcome of the Indian elections in May. |
