Pranab Mukherjee, Finance minister of India, has expressed views regarding the transfer pricing issue. Central Board of direct taxes (CBDT) has taken capacity building initiatives which have given high hopes to the Indian Finance ministry of mopping up higher revenues for developmental purposes and meeting with the emerging administrative challenges on TP regulations.

The TP regulations also would ensure that the profits don't shift in cross border transactions and remain in India for utilization. Mr. Mukherjee believed that the tendency to shift profits will be higher in India since India is a high growth market.

Transfer pricing is a major international tax compliance issue as the MNCs tend to set transfer pricing on cross-border transactions which helps them in the reduction of taxable profits.

India, is a relatively newcomer to the enforcement of transfer pricing. The transfer pricing directorate has made an adjustment of Rs. 23,000 crore since the TP legislation was introduced in 2001, the Transfer Pricing Directorate has made an adjustment of Rs 23,000 crore (about $5 billion).This is a great achievement in a small period of time.