About one year ago, the Indian government convened a task force to study the outflow of royalties paid by domestic firms for foreign technology and intellectual property. Now, a report in the Times of India claims that the Ministry of Commerce and Industry is circulating a proposal to bring back caps on such payments. The resurrection of restrictions - which were eased back in 2009 - could boost local companies’ profits as well as the tax authorities’ take, but will unsettle both brand and technology licensors from abroad.

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