Question: A close friend of mine in India wants to book a property in Sharjah for which he has to make a down payment urgently as the offer is valid only for a certain period. He is not able to remit funds from India through his bank account immediately and therefore he has asked me to pay the deposit amount on his behalf.  I am in two minds whether to do so or not.  Please advise.

ANSWER: I assume that your close friend in India is going to pay the amount for the property in Sharjah under the liberalised remittance scheme of the Reserve Bank of India, which permits resident Indians to remit from their own bank account an amount upto $250,000 every year. This scheme covers specified transactions which includes immovable property purchases. It is not in conformity with law for a non-resident Indian to make part payment for such purchases on behalf of a resident Indian. The authorities in India have viewed such payments as being in contravention of section 3(a) of the Foreign Exchange Management Act. The Enforcement Directorate has taken action against resident Indians where payments are made on their behalf by a non-resident Indian or a foreign citizen.  

Offences under section 3(a) of FEMA are compoundable and a substantial compounding fee may have to be paid by your resident friend in India who will be subjected to investigation by the Enforcement Directorate. Therefore, I would advise you to refrain from giving the deposit on behalf of your Indian friend and he should be advised to pay the full amount for the purchase of the immovable property in Sharjah directly from his own Indian bank account as permitted under the liberalised remittance scheme.

Question: I believe that labour laws in India have been rewritten.  Will this result in a better remuneration package for both regular employees and workers in the unorganised sector?

ANSWER: The four labour codes which have been rolled out in India will create a unique labour landscape that replaces a century of multiple laws with a consolidated and unified regulatory framework. The four codes will cover various aspects of social security, working conditions, safety, and health. With an expanded definition of wages, employees will benefit and employers will have greater clarity as a result of specific calculations for higher gratuity, leave encashment, statutory bonus, overtime payments and employees’ state insurance benefits. The changes will demand a comprehensive review of salary structures and payroll systems to ensure compliance.  Inevitably, this will lead to higher compensation costs for employers at all levels by way of additional remuneration and higher amount of retirement benefits. 

Workers in the unorganised sectors will get additional protection as the new code provides a statutory minimum wage for all categories of workers and prohibits gender-based wage discrimination. The Social Security Code extends benefits to gig workers, platform employees and those who are on contract basis.  A national data base of unorganised workers and a dedicated social security fund is targeted to deliver welfare benefits. 

For migrant workers, the code regulates working conditions, workplace safety norms, and ensures portability of benefits.  If implemented effectively, the unified framework promises greater transparency and a stronger worker protection regime. Therefore, the new labour codes will mark a historic moment in India’s economic reforms journey.

HP Ranina is a practising lawyer, specialising in corporate and tax laws of India.

Question: 2025 has been a turbulent year for the auto industry in some parts of the world from where exports have traditionally taken place.  Has there been any adverse impact in India?

ANSWER: According to industry figures recently released, manufacturers of cars in India exported 858,000 cars, sedans and utility vehicles, which is 15% over the export of 744,000 vehicles in 2024.  The rising demand has been from African, South American and West Asian countries. Car makers in India are expecting that higher passenger vehicle exports will touch 30% of the total production of cars in India over the next five years.  Footprint of cars manufactured in India has been growing even in developed markets of Europe, Japan and Australia. It is therefore expected that the Indian automobile industry will play a significant role across multiple economies.

Maruti Suzuki alone accounts for 46% of India’s total exports mainly to South America, Japan, Africa and South East Asia.  This company shipped out eighteen models to around hundred countries in 2025.  The rising exports reflect India’s manufacturing capabilities based on cost competitiveness, technological advancements and a large supplier base.  Honda is also looking at scaling up exports and making India the sole manufacturing hub for its new EV models.  Korean auto majors like Hyundai and Kia have targeted emerging markets in Africa and Latin America. Trade agreements with countries like Mexico will help to sustain the momentum way into 2026.

The writer is a practising lawyer, specialising in corporate and fiscal laws of India.