Theme Paper Book 1With New Page

Confederation of Indian Industry

A Conclave to Showcase nvest Investment Opportunities no th in Northern States 3 - 4 November 2012 : Gurgaon, India

SCALING NORTHERN HEIGHTS

Knowledge Partner Confederation of Indian Industry

A Conclave to Showcase nvest Investment Opportunities no th in Northern States 3 - 4 November 2012 : Gurgaon, India

SCALING NORTHERN HEIGHTS

CONTENTS

I. THE NORTHERN REGION: AN OVERVIEW

II. ADVANTAGE NORTH: AHEAD OF THE CURVE

III. HIGH-GROWTH SECTORS: A WINDOW OF OPPORTUNITY

IV. POLICY INITIATIVES: CONTINUOUS ENHANCEMENT

V. LOOKING AHEAD: KEEPING THE FUTURE IN FOCUS

Knowledge Partner

The KPMG name, logo & "cutting through complexity" are registered trademarks or trademarks of KPMG International. Confederation of Indian Industry

A Conclave to Showcase nvest Investment Opportunities no th in Northern States 3 - 4 November 2012 : Gurgaon, India

SCALING NORTHERN HEIGHTS

CONTENTS

I. THE NORTHERN REGION: AN OVERVIEW

II. ADVANTAGE NORTH: AHEAD OF THE CURVE

III. HIGH-GROWTH SECTORS: A WINDOW OF OPPORTUNITY

IV. POLICY INITIATIVES: CONTINUOUS ENHANCEMENT

V. LOOKING AHEAD: KEEPING THE FUTURE IN FOCUS

Knowledge Partner

The KPMG name, logo & "cutting through complexity" are registered trademarks or trademarks of KPMG International. I. THE NORTHERN REGION: AN OVERVIEW

India's vast northern region comprises eight accounts for approximately 30.7 percent of states — Delhi, Haryana, Himachal Pradesh, India's geographical area.1 Further, the region is Executive Summary Jammu & Kashmir, Punjab, Rajasthan, Uttar sizeable in terms of population — it is home to Pradesh and Uttarakhand — and one union around 30.5 percent of the country's territory (UT), Chandigarh. With Rajasthan being population, including Uttar Pradesh, India's most The northern region of India with 7 percent of world's population has for long served as the breeding the country's largest state by area, the region populous state.1 ground for innovation and entrepreneurship. Many Indian home grown businesses have taken roots in this part of the country and the region has also been the preferred investment gateway for foreign Table 1: Northern region at a glance players. Time is testimony to the advent of outsourcing, which started from this region when global State/ UT Geographical area Share in India's total Population Share in India's total airlines and banks preferred moving their back office work to India and opened their captive units in ('000 km square) geographical area population National Capital Region. Global auto majors like Suzuki, Honda and a large number of auto ancillaries are operating in India from some of their largest plants based out of this region. North also has its advantage Delhi 1.5 0.1% 16,753,235 1.4% of being the political power center of the country with National Capital in its folds. Haryana 44.2 1.3% 25,353,081 2.1% Himachal Pradesh 55.7 1.7% 6,856,509 0.6% The region contributes 26 percent to India's GDP and accounts for 31 percent of India's Agriculture GDP. Jammu & Kashmir 222.2 6.8% 12,548,926 1.0% The region has an abundant availability of young, educated and skilled work force. This coupled with Punjab 50.4 1.5% 27,704,236 2.3% rising income levels and strong consumer base have resulted in the proliferating investor interests in the Rajasthan 342.2 10.4% 68,621,012 5.7% region. The upcoming projects of Delhi Mumbai Industrial corridor (project worth more than USD90 Uttar Pradesh 240.9 7.3% 199,581,477 16.5% Uttarakhand 53.5 1.6% 10,116,752 0.8% billion), Eastern and Western dedicated freight corridors would provide a lasting solution to the inherent Chandigarh 0.1 0.0% 1,054,686 0.1% constraint of being distant from all sea-ports. Apart from the speedy link to the east and west coast, these Northern region 1,010.7 30.7% 368,589,914 30.5% corridors will also fuel the development of smart cities to provide impetus to investment activities in the India 3,287.2 100.0% 1,210,193,422 100.0% region. Sources: Census 2011, KPMG in India analysis The region scores high on the human development parameters as well, despite its size by area and Each state/ UT offers a distinct advantage in building the overall investment viability in the region. While, population. Three of India's top five states on the Human Development Index (HDI) belong to this part of Delhi offers a world class airport, reliable and quality power supply, excellent road and rail connectivity; 2 the country. These include Delhi (second), Himachal Pradesh (third) and Punjab (fifth). This is reflective of Punjab, Haryana and Uttar Pradesh are the major contributors to the agriculture and milk output of the the region's strong economic growth over the years, which has led to increased income and affordability country. Himachal Pradesh, Uttarakhand and Jammu & Kashmir have abundant water resources and of basic health and education services. picturesque landscapes. The region attracts millions of domestic as well as foreign tourists; the region is Table 2: Human development in the northern region home to the India's tourism icon: Taj Mahal and many famous temples and shrines like The Golden HDI rank Health rank Income rank Education rank Temple in Amritsar, Ajmer Sharif and religious destinations such as Haridwar and Varanasi. The region Delhi 2 2 1 2 also has the mineral rich state of Rajasthan and the automotive hub of India - Haryana. Add to this, the Haryana 9 11 7 11 recent spree of reforms in various sectors, the massive outlay of the twelfth five year plan, upcoming Himachal Pradesh 3 3 4 4 corridors and the National Manufacturing Policy, all these provide the required thrust to investments in Jammu & Kashmir 10 16 5 13 Punjab 4 8 the region. 5 3 Rajasthan 17 13 16 22 Uttar Pradesh 18 19 18 20 Northern region is a promising land of opportunities with its strategic location and abundant natural & Uttarakhand 14 16 13 9 manpower resources being a boon for investors. Traditionally, the northern region has lagged in Note: The ranking for Chandigarh on HDI 2011 is not available. The rankings are for 23 states of India attracting investments (FDI share of 27.5 percent between April 2000 to June 2012) and stands at the Source: India Human Development Report 2011 number two spot behind the western region (50 percent). However, with these fundamentals in place and Economic profile the commitment of the state governments for a resilient future, the region continues to be an impeccable The northern region is economically crucial for percent of national agricultural production.3 destination for growth & investments. the Indian economy, as it contributes The region's economic significance may be approximately 26.4 percent to the country's attributed to the high growth it has The following report is an attempt to highlight the advantages & opportunities of the region to the GDP and is the home to some of the richest registered over the past decade, which, in states and union territories including Delhi, potential investors and the way forward. turn, has facilitated the growth of income\ Chandigarh and Haryana.3 Further, as an and investment in the region. agrarian region, it accounts for around 32.7

1Census of India 2011, Census India website, www.censusindia.gov.in/2011 provresults/prov_results_paper1_india.html, accessed 15 September 2012 2“North India : Leveraging Opportunities for Accelerated Growth”, CII, 2012 3“Press Releases & Statements,” Ministry of Statistics and Programme Implementation, Central Statistical Organisation website, http://mospi.nic.in/Mospi_New/site/inner.aspx?status=3&menu_id=82, accessed 15 September 2012, KPMG in India analysis

1 2012 2 Confederation of Indian Industry I. THE NORTHERN REGION: AN OVERVIEW

1 2012 2 Confederation of Indian Industry 1. GDP growth Further, as a natural outcome of accelerated in 2011–12,4 followed by industry and Growth in this region has been strong over the Chandigarh (9.4 percent) have outperformed growth, the region's focus has shifted from agriculture sectors, with shares of 25.1 percent last seven years, with GDP growth averaging at the country's growth (8.3 percent), while agriculture towards industry and services sectors. and 21.7 percent, respectively. The services around 8.4 percent between 2005–06 and Rajasthan (7.8 percent), Punjab (7.1 percent), This can be observed from its sector-specific sector currently dominates across all states/UT in 2011–12 as against 8.3 percent growth of the Uttar Pradesh (7.0 percent) and Jammu & contribution to the region's GDP, where the the region, except Himachal Pradesh, where overall Indian economy during the same period.3 Kashmir (6.0 percent) have seen less growth services sector led with a share of 53.1 percent industry is predominant. Further, growth has been diverse across the than the national average. Himachal Pradesh has Table 4: Sectoral contribution to the northern region's GDP (2011–12) region's states. Uttarakhand (13.7 percent), grown at the national average of 8.3 percent Delhi (11.4 percent), Haryana (9.4 percent) and between 2005–06 and 2011–12. State/ UT Agriculture Industry Services Delhi 0.9% 17.4% 81.8% Figure 1: GDP growth: northern region vis-a-vis national average (%) Haryana 20.6% 28.2% 51.2% Himachal Pradesh 18.1% 41.4% 40.5% Jammu & Kashmir 18.7% 29.6% 51.7% 10.1 9.6 9.5 9.3 Punjab 31.5% 26.2% 42.3% 8.9 Rajasthan 8.2 8.4 8.2 8.4 8.4 26.8% 28.6% 44.6% 7.6 Uttar Pradesh 7.2 28.1% 22.1% 49.8% 6.7 6.5 Uttarakhand 12.6% 35.7% 51.6% Chandigarh 0.5% 14.5% 85.0% Northern region 21.7% 25.1% 53.1%

Source: Central Statistical Organisation, KPMG in India analysis 2. Per capita income High growth in the northern region has the eight states and single UT the region

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 translated into high income levels. Within the encompasses, six have outperformed the region, Uttarakhand has posted the highest national average on the per capita income in Avg. 8.4% Avg. 8.3% Northern region India 3 (2005-06 to 2011-2012) (2005-06 to 2011-2012) growth of 11.3 percent between 2004–05 and 2011–12. In addition, Delhi accounts for the 2011–12 followed by Delhi (9.3 percent) and region's as well as the country's highest per 3 Sources: Central Statistical Organisation, KPMG in India analysis Haryana (7.5 percent). Consequently, among capita income.

Uttar Pradesh, Rajasthan, Delhi and Haryana have been the primary contributors to the northern region's Table 5: Per capita income in the northern region GDP, accounting for a share of 31.7 percent, 17.0 percent, 14.4 percent and 14.2 percent, respectively.3 State/UT Per capita income Comparison with India Rank in the region The high contribution of Uttar Pradesh and Rajasthan are reflective of their large population. (2011–12, INR) Delhi 119,032 1 Table 3: GDP growth in the northern region Haryana 62,825 3 State/UT Average growth during the last seven years Contribution to the northern region's GDP Himachal Pradesh 49,817 5 (2011–12) Jammu & Kashmir 29,195 7 Punjab Delhi 11.4% 14.4% 46,788 6 Rajasthan Haryana 9.4% 14.2% 27,421 8 Uttar Pradesh Himachal Pradesh 8.3% 2.9% 18,099 9 Uttarakhand Jammu & Kashmir 6.0% 2.9% 52,125 4 Chandigarh Punjab 7.1% 11.4% 95,937 2 India 37,851 Rajasthan 7.8% 17.0% Uttar Pradesh 7.0% 31.7% Source: Central Statistical Organisation, KPMG in India analysis Uttarakhand 13.7% 4.4% 3. Foreign investment Chandigarh 9.4% 1.1% Rising income levels and a strong consumer base region, the RBI's 'New Delhi' region, which Northern region 8.4% 100% India 8.3% have resulted in proliferating investor interest in includes Delhi and parts of Haryana and Uttar the region. Illustratively, the region received 27.5 Pradesh, is the highest recipient of FDI with a Sources: Central Statistical Organisation, KPMG in India analysis percent of India's cumulative FDI equity inflow share of more than 94 percent in the region's between April 2000 and June 2012.5 Within the total FDI equity inflow between April 2000 and

4Ministry of Statistics and Programme Implementation, Central Statistical Organisation website, 3“Press Releases & Statements,” Ministry of Statistics and Programme Implementation, Central Statistical Organisation website, http://mospi.nic.in/Mospi_New/upload/SDPmain_04-05.htm, accessed 12 October 2012, KPMG in India analysis http://mospi.nic.in/Mospi_New/site/inner.aspx?status=3&menu_id=82, accessed 15 September 2012, KPMG in India analysis 5 “FDI statistics”, DIPP, GoI website, http://dipp.nic.in/English/Publications/FDI_Statistics/FDI_Statistics.aspx, accessed 15 September 2012

3 2012 4 Confederation of Indian Industry 1. GDP growth Further, as a natural outcome of accelerated in 2011–12,4 followed by industry and Growth in this region has been strong over the Chandigarh (9.4 percent) have outperformed growth, the region's focus has shifted from agriculture sectors, with shares of 25.1 percent last seven years, with GDP growth averaging at the country's growth (8.3 percent), while agriculture towards industry and services sectors. and 21.7 percent, respectively. The services around 8.4 percent between 2005–06 and Rajasthan (7.8 percent), Punjab (7.1 percent), This can be observed from its sector-specific sector currently dominates across all states/UT in 2011–12 as against 8.3 percent growth of the Uttar Pradesh (7.0 percent) and Jammu & contribution to the region's GDP, where the the region, except Himachal Pradesh, where overall Indian economy during the same period.3 Kashmir (6.0 percent) have seen less growth services sector led with a share of 53.1 percent industry is predominant. Further, growth has been diverse across the than the national average. Himachal Pradesh has Table 4: Sectoral contribution to the northern region's GDP (2011–12) region's states. Uttarakhand (13.7 percent), grown at the national average of 8.3 percent Delhi (11.4 percent), Haryana (9.4 percent) and between 2005–06 and 2011–12. State/ UT Agriculture Industry Services Delhi 0.9% 17.4% 81.8% Figure 1: GDP growth: northern region vis-a-vis national average (%) Haryana 20.6% 28.2% 51.2% Himachal Pradesh 18.1% 41.4% 40.5% Jammu & Kashmir 18.7% 29.6% 51.7% 10.1 9.6 9.5 9.3 Punjab 31.5% 26.2% 42.3% 8.9 Rajasthan 8.2 8.4 8.2 8.4 8.4 26.8% 28.6% 44.6% 7.6 Uttar Pradesh 7.2 28.1% 22.1% 49.8% 6.7 6.5 Uttarakhand 12.6% 35.7% 51.6% Chandigarh 0.5% 14.5% 85.0% Northern region 21.7% 25.1% 53.1%

Source: Central Statistical Organisation, KPMG in India analysis 2. Per capita income High growth in the northern region has the eight states and single UT the region

3 2012 4 Confederation of Indian Industry June 2012. However, the other northern states the farms productive (see section four of the Table 7: Eastern DFC are also formulating enabling policies to attract report for details on policies).6 These may boost State Length (km) % of Eastern DFC length investment. For example, land reforms by the overall investment, while ensuring a more Punjab 88 4.8%

Punjab and Rajasthan governments, by removing equitable distribution of investment within the Haryana 72 3.9% 65.7% Uttar Pradesh 1,049 57.0% } ceiling on size of lease, are likely to encourage region. corporates to invest in farm technology to make Bihar 93 5.1% West Bengal/Jharkhand 538 29.3% Table 6: Cumulative FDI equity inflow to the northern region — April 2000 to June 2012 Total length 1,839 RBI's region States/UT covered Cumulative FDI equity inflow, % share % share Source: Dedicated Freight Corridor Corporation of India Ltd., website, http://dfccil.org/DFCC/Projects/Eastern%20Corridor, USD million in in (Apr'00–Jun'12) northern India's accessed 15 September 2012, KPMG in India analysis FDI FDI Similarly, the Western Corridor will connect the northern states of Haryana, Rajasthan and Uttar Pradesh Delhi Delhi, parts of Uttar Pradesh and Haryana 33,852 94.2% 25.9% with the western states of Gujarat and Maharashtra. Of its total route length of 1,483km, 50 percent will Chandigarh Chandigarh, Punjab, Haryana, Himachal 1,159 3.2% 0.9% Pradesh fall in the northern region. The corridor will facilitate traffic of containers from the ports of Maharashtra 9 Jaipur Rajasthan 606 1.7% 0.5% and Gujarat to Inland Container Depots (ICDs) located in North. The other commodities which are Kanpur Uttar Pradesh, Uttarakhand 323 0.9% 0.2% expected to move on the corridor are fertilizers, food grains, salt, coal, POL, steel and cement and iron. Northern total 35,940 100% 27.5% Under the plan, logistics parks are also proposed in the northern region — at Jaipur area in Rajasthan and India 130,850* NCR of Delhi. These are proposed to be developed in Public Private Partnership (PPP), offering an

* Excluding region not indicated and RBI's-NRI schemes | Sources: Department of Industrial Policy & Promotion (DIPP), KPMG in India analysis attractive investment opportunity for the investors.

Evidently, the northern region has experienced been commensurate with its various advantages, Table 8: Western DFC strong growth in recent times, which has helped making it an ideal destination for investors. The State Length (km) % of Western DFC length enhance its per capita income and foreign following section of this paper delves into the Haryana 192 12.9% 50.2% investment status. However, a lot more can be region's key advantages and the aspects that Rajasthan 553 37.3% achieved as the investment in the region has not make it appealing for investments. Gujarat 588 39.6% II. ADVANTAGE NORTH: AHEAD OF THE CURVE Maharashtra 150 10.1% The northern region has everything to offer to a DFCs and DMIC to improve connectivity of the Total length 1,483 prospective investor — abundant natural northern region with the rest of the country. Source: Dedicated Freight Corridor Corporation of India Ltd., website, http://dfccil.org/DFCC/Projects/Western%20Corridor, resources, a large consumer base, proposed accessed 15 September 2012, KPMG in India analysis world-class infrastructure (particularly the Delhi The Eastern Corridor, for example, starting from The Delhi Mumbai Industrial corridor is a mega infrastructure project of USD 90 billion which is being Mumbai Industrial Corridor [DMIC] and Ludhiana in Punjab, will pass through Haryana, developed with the financial and technical support from Japan. The project, with an overall length of Dedicated Freight Corridors [DFCs]), the Uttar Pradesh and Bihar and terminate at 1,483km, will pass through six states — Uttar Pradesh, Delhi, Haryana, Rajasthan, Gujarat and availability of young and educated manpower Dankuni in West Bengal, providing the much- Maharashtra.10 The four northern states covered will collectively constitute approximately 52 percent of and the ease of doing business. These aspects needed link between the northern states and the total length of the DMIC. Integrated investment regions and Industrial areas have also been identified put together make it a viable investment the eastern region.7 The total route length of the within the corridor to provide self-ustained townships and a world-class infrastructure for connectivity, destination. Eastern Corridor is estimated at 1,839 km, e.g. a city planned in Haryana would need an investment of USD30 billion over the next 30 years. The corridor will create globally competitive environment and infrastructure in the northern region and thus approximately 65.7 percent of which will fall in would set ideal conditions for investment across sectors. 1. Developing world the northern region. The corridor is expected to give the economic activity a boost in the Table 9: DMIC class infrastructure northern region by catering to a number of State Length (km) % of DMIC length Infrastructure is critical for the economic growth traffic flows, such as coal for the power plants in Rajasthan 578 39% of any country/region as it reduces the cost of Uttar Pradesh, Delhi, Punjab, Haryana and parts Haryana 148 10% doing business and thus enhances the 52% of Rajasthan from the Eastern coal fields; food Uttar Pradesh 22 1.5% investment attractiveness of that country/region. Delhi 22 1.5% } grains, cement, finished steel, lime stone, Considering this, the Government of India (GoI) fertilizers from Rajasthan to steel plants in the Gujarat 564 38% has proposed large-scale infrastructure projects 8 east and general goods. Maharashtra 148 10% such as the construction of Eastern and Western Total length 1,483 Source: DMIC website, www.dmic.co.in, accessed 15 September 2012, KPMG in India analysis 6 Punjab, CII website, http://www.cii.in/PressreleasesDetail.aspx?enc=R11MDfHWHIuHESjlGT+2y0/w4G5vHlR+n6IwyuVDVtACaK4kEopOD9EPPmy2 kuKL+/TBQX3My2oLjD5YaYpHlxSAJmfDr6qVGXvIpC6CEok=, accessed 11 October 2012 9 Dedicated Freight Corridor Corporation of India Ltd., website, http://dfccil.org/DFCC/Projects/Western%20Corridor, accessed 15 September 2012, 7 Dedicated Freight Corridor Corporation of India Ltd. website, http://dfccil.org/DFCC/Home/Home, accessed 27 September 2012 KPMG in India analysis 8 Dedicated Freight Corridor Corporation of India Ltd. website, http://dfccil.org/DFCC/Projects/Eastern%20Corridor, accessed 12 October 2012 10 DMIC website, www.dmic.co.in, accessed 15 September 2012

5 2012 6 Confederation of Indian Industry June 2012. However, the other northern states the farms productive (see section four of the Table 7: Eastern DFC are also formulating enabling policies to attract report for details on policies).6 These may boost State Length (km) % of Eastern DFC length investment. For example, land reforms by the overall investment, while ensuring a more Punjab 88 4.8%

* Excluding region not indicated and RBI's-NRI schemes | Sources: Department of Industrial Policy & Promotion (DIPP), KPMG in India analysis attractive investment opportunity for the investors.

5 2012 6 Confederation of Indian Industry With, such infrastructure corridors, the cost of They will further augment the linkage to other Table 10: Literacy in the northern region transporting raw material and finished goods to markets and to supply bases and increase the State/UT Literacy rate (2001, %) Literacy rate (2011, %) and from the northern region is expected to competitiveness of the region as a whole. Delhi 81.7% 86.3% decline, and industrial activity in the region is, Further, the National Manufacturing Policy is Haryana 67.9% 76.6% thus, expected to receive impetus. expected to facilitate the flow of cash, finance Himachal Pradesh 76.5% 83.8% These corridors are expected to boost the and skills across the region. Both these Jammu & Kashmir 55.5% 68.7% economic activity in various investment regions developments are expected to increase the Punjab 69.7% 76.7% region's investment attractiveness. by providing smooth connectivity to other states. Rajasthan 60.4% 67.1% Uttar Pradesh 56.3% 69.7% 2. Abundant natural resources 3. Availability of a young, educated Uttarakhand 71.6% 79.6% The northern region offers easy access to raw and skilled workforce Chandigarh 81.9% 86.4% material for economic activity, with its abundant The availability of a young, educated and skilled India 64.8% 74.0% natural resources. For instance, it includes many workforce is extremely important to propel the Source: Census 2011, Census India website, www.censusindia.gov.in/2011-prov-results/prov_results_paper1_india.html, agricultural states such as Uttar Pradesh, Punjab economic growth of any country/region, as it is accessed 15 September 2012, KPMG in India analysis and Haryana. This facilitates the availability of believed to be more productive. In the northern adequate raw material for agro-based industries region, 56 percent of the population falls under 4. Strong consumer base to flourish in the region. It also offers the working age group (15–64 years), which With a high share of the country's population northern region. opportunities for tapping biomass resources in facilitates the availability of an adequate and rising income levels, the northern region these northern states. Moreover, the urban population in the region is workforce for economic activity. Further, close offers a vast and thriving market to investors. rising, as people continue to move to urban Himachal Pradesh, Uttarakhand and Jammu & to 39 percent of the population is in the age Illustratively, the region comprises India's most group of 0–14 years, thus reflecting the areas for better employment opportunities. With Kashmir have abundant water resources. This is populous state — Uttar Pradesh, and some of ideal for hydro power generation in the region. predominance of a young population in North growing urban population, the new generation the richest states/UT, such as Delhi, Chandigarh These states are the leading producer of fruits India and will facilitate addition to the workforce 'smart cities' are planned across the northern and Haryana. The income of the rural population and vegetables.11 While Himachal Pradesh is of the region for several years to come. states of Uttar Pradesh, Haryana and Rajasthan.16 in North India is also rising, which constitutes known as the 'fruit bowl' of the country, Jammu Moreover, the region has healthy education These smart cities are nothing but sustainable 71 percent of the region's total population. & Kashmir is a leader in the production of apples infrastructure to train this young population, cities with integration of various areas such as contributing 57 percent of the country's total with 31.0 percent of the total universities, 25.5 The large consumer base and growing prosperity urban planning, mobility, energy efficiency and apple production. The latter is the leading 17 percent of professional colleges and 26.7 of the region, is evident from surging demand population management. These cities will use producer of walnut in the country (92 percent of percent of general colleges of the country for a range of products of mass consumption to new technologies and innovations to transform total production) while being the sixth largest located in the region.14 As a result, the region 12 luxury items in the region. Delhi, for example, their organization to optimize the use of their producer worldwide. This suggests huge has a large pool of engineers and skilled labour has approximately 7 million vehicles, which is limited resources. For example, the use of new potential of horticulture in these states. force available. The region also boasts of seven more than what the other three metros together technology in better water and waste The region also has mineral rich state of Indian Institute of Technology (IIT), four Indian 15 have. Ludhiana on the other hand is known as management, in provision of clean energy, Rajasthan which has around 79 types of Institute of Management (IIM) and the Indian 13 the 'Mercedes Capital' because of the most integrated transportation etc. In future, these minerals. This facilitates the growth of various School of Business (ISB). Further, the region has Mercedes cars the city has as compared to other mineral-based industries, such as glass, cement a high literacy rate with six states/UTs having cities are expected to contribute to the growth and ceramics. Thus the northern region, with its higher literacy than that of the national average. cities of the country. This is mainly attributable of the region with concentration of business, vast natural resources, is an ideal destination for Thus, the young and skilled workforce in the to the young and affluent population of the trade and people expertise. investment. region makes it a perfect place for investors.

Figure 2: Population by age group in the northern region 65+ yrs, 5.0% 0-14 Source: Indiastat website, http://www.indiastat.com/ yrs, 38.7% demographics/7/population/217/agegroupwisepopulati on 2001census/409340/stats.aspx, accessed on 15 September 2012, KPMG in India analysis 15-64 yrs, 56.3%

11 Himachal – A Fruit State”, http://hpmc.gov.in/himachal.htm, accessed on 13 October 2012 12 “Jammu & Kashmir,” http://www.cii.in/States.aspx?enc=5WcSaM0yzEfRFlFUNeIvYGPI9xL9HypQH+qrcmYEmb76eMXlnBGI054c+8rEqE7onHhlPNA7w HuBKby+wCam9A==, accessed on 22 October 2012 15“Delhi may soon levy congestion fee on vehicles”, The Economic Times, 8 April 2011 13 Natural Resources, Rajasthan Invest in the Future, http://www.investrajasthan.com/natural-resources.cms, accessed on 13 October 2012 16“7 smart cities to be built in Delhi-Mumbai Industrial corridor In India”, http://www.aajkatajakhabar.com/india/7-smart-cities-to-be-built-in-delhi- 14Ministry of Human Resource Development website, http://mhrd.gov.in/statistics_data?tid_2=158, Statistics of Higher & Technical mumbai-industrial-corridor-in-india/, accessed 15 October 2012 Education 2008-09, accessed [28/09/2012], KPMG in India analysis 17 M Ramachandran, “M Ramachandran: Towards smart cities”, Business Standard, 7 October 2012

7 2012 8 Confederation of Indian Industry With, such infrastructure corridors, the cost of They will further augment the linkage to other Table 10: Literacy in the northern region transporting raw material and finished goods to markets and to supply bases and increase the State/UT Literacy rate (2001, %) Literacy rate (2011, %) and from the northern region is expected to competitiveness of the region as a whole. Delhi 81.7% 86.3% decline, and industrial activity in the region is, Further, the National Manufacturing Policy is Haryana 67.9% 76.6% thus, expected to receive impetus. expected to facilitate the flow of cash, finance Himachal Pradesh 76.5% 83.8% These corridors are expected to boost the and skills across the region. Both these Jammu & Kashmir 55.5% 68.7% economic activity in various investment regions developments are expected to increase the Punjab 69.7% 76.7% region's investment attractiveness. by providing smooth connectivity to other states. Rajasthan 60.4% 67.1% Uttar Pradesh 56.3% 69.7% 2. Abundant natural resources 3. Availability of a young, educated Uttarakhand 71.6% 79.6% The northern region offers easy access to raw and skilled workforce Chandigarh 81.9% 86.4% material for economic activity, with its abundant The availability of a young, educated and skilled India 64.8% 74.0% natural resources. For instance, it includes many workforce is extremely important to propel the Source: Census 2011, Census India website, www.censusindia.gov.in/2011-prov-results/prov_results_paper1_india.html, agricultural states such as Uttar Pradesh, Punjab economic growth of any country/region, as it is accessed 15 September 2012, KPMG in India analysis and Haryana. This facilitates the availability of believed to be more productive. In the northern adequate raw material for agro-based industries region, 56 percent of the population falls under 4. Strong consumer base to flourish in the region. It also offers the working age group (15–64 years), which With a high share of the country's population northern region. opportunities for tapping biomass resources in facilitates the availability of an adequate and rising income levels, the northern region these northern states. Moreover, the urban population in the region is workforce for economic activity. Further, close offers a vast and thriving market to investors. rising, as people continue to move to urban Himachal Pradesh, Uttarakhand and Jammu & to 39 percent of the population is in the age Illustratively, the region comprises India's most group of 0–14 years, thus reflecting the areas for better employment opportunities. With Kashmir have abundant water resources. This is populous state — Uttar Pradesh, and some of ideal for hydro power generation in the region. predominance of a young population in North growing urban population, the new generation the richest states/UT, such as Delhi, Chandigarh These states are the leading producer of fruits India and will facilitate addition to the workforce 'smart cities' are planned across the northern and Haryana. The income of the rural population and vegetables.11 While Himachal Pradesh is of the region for several years to come. states of Uttar Pradesh, Haryana and Rajasthan.16 in North India is also rising, which constitutes known as the 'fruit bowl' of the country, Jammu Moreover, the region has healthy education These smart cities are nothing but sustainable 71 percent of the region's total population. & Kashmir is a leader in the production of apples infrastructure to train this young population, cities with integration of various areas such as contributing 57 percent of the country's total with 31.0 percent of the total universities, 25.5 The large consumer base and growing prosperity urban planning, mobility, energy efficiency and apple production. The latter is the leading 17 percent of professional colleges and 26.7 of the region, is evident from surging demand population management. These cities will use producer of walnut in the country (92 percent of percent of general colleges of the country for a range of products of mass consumption to new technologies and innovations to transform total production) while being the sixth largest located in the region.14 As a result, the region 12 luxury items in the region. Delhi, for example, their organization to optimize the use of their producer worldwide. This suggests huge has a large pool of engineers and skilled labour has approximately 7 million vehicles, which is limited resources. For example, the use of new potential of horticulture in these states. force available. The region also boasts of seven more than what the other three metros together technology in better water and waste The region also has mineral rich state of Indian Institute of Technology (IIT), four Indian 15 have. Ludhiana on the other hand is known as management, in provision of clean energy, Rajasthan which has around 79 types of Institute of Management (IIM) and the Indian 13 the 'Mercedes Capital' because of the most integrated transportation etc. In future, these minerals. This facilitates the growth of various School of Business (ISB). Further, the region has Mercedes cars the city has as compared to other mineral-based industries, such as glass, cement a high literacy rate with six states/UTs having cities are expected to contribute to the growth and ceramics. Thus the northern region, with its higher literacy than that of the national average. cities of the country. This is mainly attributable of the region with concentration of business, vast natural resources, is an ideal destination for Thus, the young and skilled workforce in the to the young and affluent population of the trade and people expertise. investment. region makes it a perfect place for investors.

7 2012 8 Confederation of Indian Industry Bharti Group - Enriching Lives in North India Liberty Shoes Limited – rooted in northern India

North India has been the launch pad for several businesses of the New Delhi Liberty Shoes started its operations from Karnal (Haryana) in 1954. Today, headquartered Bharti Group. The Group, founded in 1976 in Ludhiana by Liberty is one of the most trusted brand in the footwear market. The Sunil Bharti Mittal, began its journey as small manufacturer of bicycle parts and is today counted amongst the largest and most respected business houses company's journey to a well recognised brands name across India is attributed in the country with interests spanning telecom, retail, financial services and to its strong exclusive dealership network, availability of requisite resources, real estate. state of the art manufacturing facilities and customer oriented approach. Bharti Airtel, the Group flagship, began operations in 1995 by launching its mobile services under the 'Airtel' brand in Delhi. Today, Bharti Airtel operates in 20 countries across Asia and Africa with a customer base of over 260 Liberty's Performance – horizontal development in the north million. Besides being the largest telecom operator in India, the company ranks as the fourth largest wireless operator in the world in terms of The crucial role played by the northern region in Liberty's portfolio can be subscribers. gauged from the composition of its turnover and employee base. As per FY12 “North India has always played a Mr Sunil Bharti Mittal pivotal role in bringing prosperity Chairman & Group CEO, Bharti Other business ventures of the Group include Bharti Softbank - a JV between figures, the northern region accounted for 45 percent of total revenue of INR5 to the Indian economy because of Enterprises Ltd Bharti Enterprises and Softbank Corp - for mobile internet. Beetel Teletech, a better infrastructure and availability billion. In terms of employment, the region accounts for 70 percent of total group company, is India's leading manufacturer and distributor of telecom of requisite resources”, and allied products. The group has a JV – FieldFresh Foods – with Del Monte Pacific Ltd, to offer fresh and personnel employed by the company. Mr Adesh Gupta, processed fruits and vegetables in the domestic as well as international markets. Bharti has JVs with AXA, CEO, Liberty Shoes Ltd. a world leader in financial protection and wealth management, for life insurance and general insurance. The significant contribution of the Northern region in company's financials and The Group has a presence in the retail sector through Bharti Retail that operates 'easyday' stores in operations has resulted in the presence of six manufacturing facilities in this region. The location of these multiple formats. It also has a JV - Bharti Wal-Mart - with Wal-Mart for wholesale cash-and-carry and back-end supply chain management operations in India. units helps in reducing transportation cost and delivery time for its dominant consumer – North India. Besides, the popularity of the brand in the region has resulted in less branding expenditure. The iconic moment for Bharti was the acquisition of Zain Group's (“Zain”) mobile operations in 15 countries across Africa for an enterprise valuation of USD10.7 billion. With the acquisition, 'Airtel' became the fifth largest telecom company in the world, by subscriber base. Rooted in north – but spreading its stems Company Performance – Leveraging North India for its expansion A healthy mix of agriculture, tourism, service sector and industries facilitates the rapid and diverse The company has a strong belief in the merits of doing business in the northern region. While, economic development of the Northern region. Further, the region has a higher per capita income heterogeneous population with high disposable income makes northern region an attractive market for (compared to the national average) with a higher propensity to spend owing to the evolving lifestyle the footwear Industry; developed infrastructure, availability of skilled and cheap labor and conducive trends. Moreover, a large consumer base, progressive state government policies and future growth financing environment make this region a preferred manufacturing destination. Liberty aims at further opportunities make North India a key geography for the Group. increasing its sales in North India by at least 20 percent. The region forms an integral part of the Group's overall business strategy and contributes over a third of Bharti Airtel's total mobile customer base. Cohesive growth – initiatives for society Bharti Retail, a 100 percent subsidiary of the Group operates 178 retail stores under the 'easyday' brand across Punjab, Delhi, Haryana, Rajasthan and Uttar Pradesh. Bharti Walmart, a 50:50 joint venture operates wholesale cash-and-carry stores and back-end supply chain management operations under the Liberty's strategy for inclusive growth by having tie-ups with some dedicated vendors benefits the 'Best Price Modern Wholesale' brand has 10 stores in Punjab, Jammu, Rajasthan and Uttar Pradesh. company in sourcing its materials and services on one hand, and provides business/financial support to FieldFresh Foods has an Agriculture Centre of Excellence (ACE) at Ladhowal, Ludhiana in Punjab. This is these vendors on the other. This strategy results in cohesive growth of both the entities. one of the largest agricultural R&D facilities of its kind and is spread over 300 acres with a state of the art protected as well as open field cultivation for value added vegetables. The company is engaged with over 4000 small and medium partner farmers across Punjab and Maharashtra for growing and exporting fresh baby corn and herbs. Beyond Business – Giving back to society The Bharti Group believes in growing with the community and undertakes philanthropic initiatives through the Bharti Foundation. The Foundation operates a total of 254 schools, 234 of which are in North India (Punjab: 90, Haryana: 46, Rajasthan: 77 and Uttar Pradesh: 15) under the Satya Bharti School programme to impart free quality education to underprivileged children in villages.. The programme currently reaches out to over 38,000 children and provides employment to over 1,300 local youth as teachers. The Group also supports 200 students every year to pursue courses in the field of telecommunication through the Bharti School of Telecommunication Technology and Management, IIT Delhi. Most recently, Bharti has supported the Indian School of Business in setting up its second campus in Mohali, Punjab by establishing the Bharti School of Public Policy. This has been formalised in close cooperation with the Fletcher School of Law & Diplomacy, Tufts University, USA.

9 2012 10 Confederation of Indian Industry Bharti Group - Enriching Lives in North India Liberty Shoes Limited – rooted in northern India

9 2012 10 Confederation of Indian Industry 5. Ease of doing business Growth drivers The ease of doing business is an important determinant of the investment attractiveness of any Growing urbanization, rising disposable income, financial incentives in Himachal Pradesh, country/region. This includes investor friendly policies, regulations and procedures. The northern region the emergence of organized food retail, Haryana and Rajasthan along with the liberal provides investors this ease, with single window clearance system and well defined timelines for various changing lifestyles and food consumption policies of the Punjab Government have helped approvals. This is clearly evident from the World Bank's 'Ease of Doing Business in India' study in 2009, patterns are the key factors driving the growth the region attract major foreign as well as where 4 northern cities featured in the list of top 10 cities among 17 cities surveyed in India (each city is a of processed foods and supporting infrastructure domestic players. The following table exhibits representative of a state).18 Ludhiana topped the list because of the ease it offers in closing business and in India. Due to agro-ecological variability, North the players in the Agro-food processing industry paying taxes. This suggests that while offering ease of entry to attract investment remains the focus of India has a surplus crop and material base of in the northern region. states, the simplicity of exit routes is equally important. Other northern cities also scored high on various fruits, vegetables, milk and grains. Moreover, sub-indices — New Delhi scored on the ease of starting a business, Gurgaon on the ease of registering Table 11: Major players in agro-processing in the region property and dealing with construction permits and Jaipur on starting a business, registering property and paying taxes. Besides, Delhi being the seat of power also facilitates ease of business in the region as it Potential segments Leading states Key players ensures easy access to regulators and policy makers. Grain processing Punjab, Haryana and Uttar Pradesh KRBL, LT overseas, Usher Agro, REI agro

Figure 3: Ease of doing business in India: rankings of cities Fruits & vegetables Himachal Pradesh, Jammu & Kashmir, HUL, Dabur, Nestle, Haldirams, Indo Punjab, Uttarakhand and Uttar Pradesh Nissin Foods, HPMC

Packed food and drinks Punjab, Uttar Pradesh, Haryana and Delhi Pepsi, Nestle, Dabur, ITC, Satnam Ludhiana, Punjab 1 overseas Hyderabad, Andhra Pradesh 2 Meat and poultry Uttar Pradesh, Himachal Pradesh, Haryana Hind Agro, Allana, Al Kabeer, MK Bhubaneswar, Odisha 3 and Punjab Overseas, Alchemist Foods Gurgaon, Haryana 4 Milk and milk products Punjab, Haryana and Uttar Pradesh Parle, Mother dairy, Verka, Vita, Saras, Ahmedabad, Gujarat 5 Cremica New Delhi, Delhi 6 Jaipur, Rajasthan 7 Source: KPMG in India analysis Guwahati, Assam 8 Further, bank finance to the northern region's agriculture sector is also relatively easily available. As Ranchi, Jharkhand 9 Mumbai, Maharashtra 10 depicted in the table below, the region commands a significant share of the overall bank credit for Indore, Madhya Pradesh 11 agriculture sector which is a key ingredient for agro processing units to prosper. Noida, Uttar Pradesh 12 Bengaluru, Karnataka 13 Table 12: Region-wise allocation of bank credit for the agri sector (%) Patna, Bihar 14 Year Northern region Southern region Western region Eastern region Chennai, Tamil Nadu 15 1980 35.8 32.1 12.6 19.5 Kochi, Kerala 16 2008 43.2 24.2 12.0 20.5 Kolkata, West Bengal 17 Source: Basic Statistical Returns, Reserve Bank of India (various issues)

.20 Source: Doing Business in India 2009, the World Bank Investment opportunities percent of the market share in grain processing This indicates significant growth potential in this Thus, the northern region, due to its various advantages, holds significant investment and growth The northern region is expected to play an area. potential. The advantages are particularly suitable for the growth of a number of industries/sectors. The important role in the progress of India's agro- next section delves into these sectors with potential opportunities, for the investors, in each. processing landscape. The following section Fruit and vegetable processing: In Himachal exhibits the segment-wise attractiveness of Pradesh and Jammu & Kashmir, agriculture and III. HIGH-GROWTH SECTORS: A WINDOW OF OPPORTUNITY processed foods which highlights the potential of allied sectors such as horticulture, floriculture and this region as an agro processing hub in India: animal husbandry are some of the predominant 1. Agro-processing areas that support about 80 percent of the state Grain processing: Punjab and Haryana have The Indian food processing market is one of the industry is seemingly well-positioned as against population. The Punjab, Uttar Pradesh and Haryana consistently been among the largest producers of largest in terms of production, consumption, that in the rest of the country. In fact, the region governments' initiatives to set up food parks and 19 wheat and rice in India. However, Punjab, which export and import prospects. At present, is expected to strengthen its leadership position Agri Export Zones (AEZs), as well as the Himachal increased its annual food production nearly 300 around 20 percent of all fruits, vegetables and in the agro-processing sector and play a pivotal Pradesh Government's support extended to apple times between 1991 and 2001, commands only 3 milk produced in North India are processed as role in the country's agriculture and processing growers, have further strengthened the food against an average of only 10 percent at the sector. national level. Thus, the region's processing

18 “India,” The World Bank, Doing Business website, www.doingbusiness.org/reports/subnational-reports/india, accessed 1 October 2012 20 19 The Union Ministry of Food Processing Industries (MOFPI), FDI in Food processing industries sector report, 2007 India Brand Equity Foundation (IBEF)Food Processing-market & opportunities report, 2008

11 2012 12 Confederation of Indian Industry 5. Ease of doing business Growth drivers The ease of doing business is an important determinant of the investment attractiveness of any Growing urbanization, rising disposable income, financial incentives in Himachal Pradesh, country/region. This includes investor friendly policies, regulations and procedures. The northern region the emergence of organized food retail, Haryana and Rajasthan along with the liberal provides investors this ease, with single window clearance system and well defined timelines for various changing lifestyles and food consumption policies of the Punjab Government have helped approvals. This is clearly evident from the World Bank's 'Ease of Doing Business in India' study in 2009, patterns are the key factors driving the growth the region attract major foreign as well as where 4 northern cities featured in the list of top 10 cities among 17 cities surveyed in India (each city is a of processed foods and supporting infrastructure domestic players. The following table exhibits representative of a state).18 Ludhiana topped the list because of the ease it offers in closing business and in India. Due to agro-ecological variability, North the players in the Agro-food processing industry paying taxes. This suggests that while offering ease of entry to attract investment remains the focus of India has a surplus crop and material base of in the northern region. states, the simplicity of exit routes is equally important. Other northern cities also scored high on various fruits, vegetables, milk and grains. Moreover, sub-indices — New Delhi scored on the ease of starting a business, Gurgaon on the ease of registering Table 11: Major players in agro-processing in the region property and dealing with construction permits and Jaipur on starting a business, registering property and paying taxes. Besides, Delhi being the seat of power also facilitates ease of business in the region as it Potential segments Leading states Key players ensures easy access to regulators and policy makers. Grain processing Punjab, Haryana and Uttar Pradesh KRBL, LT overseas, Usher Agro, REI agro

11 2012 12 Confederation of Indian Industry processing industry in these states. Considering Mass market value-added products: In the context DSCL – Living the northern dream the ecological advantage of each northern state, of agricultural diversification, dairying has evolved the Agricultural and Processed Food Products to assume center stage for northern region. The DCM Shriram Consolidated Ltd (DSCL) was formed in 1990 after restructuring Export Development Authority (APEDA) has governments of Punjab and Haryana have identified of erstwhile DCM Group which had been operating in North India for over 100 identified the following agri-export zones in North dairying as the most potent alternative to years. DSCL is a reputed business conglomerate with revenue of INR 50 billion India, which hold the potential to diversify into agriculture and bakery/confectionary items is a (around USD 1 billion). It operates in multiple businesses which can be broadly value-added products: related segment that has also attracted huge classified into: investments in the region by various companies. •Jammu & Kashmir: apples, walnuts • Agri-Rural business: Urea & SSP fertilizers, Sugar, Farm Given the significant investment potential across •Himachal Pradesh: apples solutions marketing such as bulk and specialty fertilizers, Crop •Punjab: basmati rice, vegetables segments and a liberalized policy regime with care Chemicals, Hybrid Seeds, Agronomy services etc. •Rajasthan: coriander, cumin specific incentives for the high-priority food •Uttarakhand: rice, aromatic and medicinal processing sector provides an environment that is • Chlor-Vinyl Business: Caustic Soda, Chlorine, Calcium plants highly conducive for investments and exports in Carbide, PVC resins, PVC Compounds, Power and Cement •Uttar Pradesh: rice, potatoes, mangoes, North India. The northern region seeks an emphasis “North India has been a major • Value Added Business: Fenesta Windows focus area of our company's vegetables on the investments in production and processing of investment strategy. I feel North high value commodities for example, fruits, Strong presence in northern states can be a major pull for investors Packaged food and drink: Packaged food and both domestic & foreign due to vegetables and meat and poultry with enhanced DSCL has major manufacturing facilities located in Rajasthan and Uttar the demography, availability of drink constitutes a key potential thrust area in the skilled labour, education and quality. However, due to the perishable nature of Pradesh. The company has several manufacturing plants of fertiliser, urea, northern region. Haryana, Rajasthan and Punjab growing markets amongst many these products and lack of proper infrastructure chloro vinyl, PVC resins, PVC compounds, cement and a captive power more such strengths.” are leading exporters of rice, pickle, and guar. facilities in India, in peak season around 20-25 Mr Ajay S Shriram, generation capacity of 130 MW in Kota, Rajasthan. The company has sugar Chairman & Senior Managing These states also carries enough investment percent fruit and vegetable are spoilt in various Director, DCM Shriram plants located in Ajbapur, Rupapur, Hariawan and Loni in Uttar Pradesh, with a Consolidated Ltd opportunities in the manufacture and export of stages.24 Hence, to avoid these wastages and combined installed capacity of 33,000 tonnes crushed daily (TCD) besides a processed vegetables, noodles, dalia, tomato optimize the available resources of the region, the power generation capacity of 94.5 MW. The Group's Hybrid Seed operations have a global footprint puree, fruit juice, confectionery items and soft proposed components of the Agri-Investment 21 drinks. Regions for North Indian states include operating in Vietnam, Philippines and Indonesia besides a leading presence across India. The company's Fenesta windows fabrication units are located in Kota and Bhiwadi (NCR) amongst other places. Meat and poultry processing: India possesses development of post harvest infrastructure such as the largest livestock population in the world (Uttar special economic zones (SEZs), agro and food parks, Leveraging the advantage north warehouses, logistic hub and research institutes. Pradesh tops the supply of livestock in India) with DSCL has been operating in the northern region for many decades and has built a strong reputation 50 percent of world's buffaloes and 20 percent of With more focused agriculture diversification into among its stakeholders. 22 cattle. Punjab is one of the leading suppliers of high return crops, dairy, meat and poultry industry Additionally, the northern region has a large agrarian economy and is a leading consumer as well as livestock on account of being a leading state in and investments in development of post harvest producer of agricultural products. Given the importance of agriculture in the region and the strong agriculture and animal husbandry. However, meat infrastructure, the northern region is poised to play 25 agriculture linkages of DSCL businesses, North India provides large growing markets for the company. and meat processing industry still carries huge a crucial role in the fast growing agro-processing scope for expanding exports, especially in buffalo industry in India. Also demographics, labour availability, peaceful industrial relations, some progressive government policies and poultry meat, eggs and dairy products.23 in the operating states have been great incentives to keep growing our businesses in North India in the last few decades.

Giving back to the society

DSCL has been dedicated to working towards the welfare of the society. Right from the beginning, DSCL recognized the need to contribute to the community and be a good corporate citizen. The Mid day meal schemes, funded by the company, cover 60,000 school children across 500 schools in Rajasthan.

DSCL's efforts in this direction have been manifested in the form of various initiatives in the field of healthcare, skill development, farm solutions, education, sports, cultural heritage, HIV-AIDS prevention and family planning.

21 State-wise Production of Flowers and Vegetables in India, via India Stats, 2006-2007 to 2010-2011 22 MOFPI website, http://mofpi.nic.in/ContentPage.aspx?CategoryId=145, accessed 11 October 2012 23MOFPI website, http://mofpi.nic.in/ContentPage.aspx?CategoryId=173, accessed 25 September 2012 24http://www.uasbangalore.edu.in/attachments/Post%20Harvest%20Management%20And%20Value%20Addition%20Of%20Horti cultural%20Crops.pdf, accessed on 10 October 2010 25 As per Ministry of Foods Processing Industry (MOFPI), Indian processed foods market is growing at 10% per annum to reach to Rs 13,500 billion by 2015 from Rs 992 billion in 2011

13 2012 14 Confederation of Indian Industry processing industry in these states. Considering Mass market value-added products: In the context DSCL – Living the northern dream the ecological advantage of each northern state, of agricultural diversification, dairying has evolved the Agricultural and Processed Food Products to assume center stage for northern region. The DCM Shriram Consolidated Ltd (DSCL) was formed in 1990 after restructuring Export Development Authority (APEDA) has governments of Punjab and Haryana have identified of erstwhile DCM Group which had been operating in North India for over 100 identified the following agri-export zones in North dairying as the most potent alternative to years. DSCL is a reputed business conglomerate with revenue of INR 50 billion India, which hold the potential to diversify into agriculture and bakery/confectionary items is a (around USD 1 billion). It operates in multiple businesses which can be broadly value-added products: related segment that has also attracted huge classified into: investments in the region by various companies. •Jammu & Kashmir: apples, walnuts • Agri-Rural business: Urea & SSP fertilizers, Sugar, Farm Given the significant investment potential across •Himachal Pradesh: apples solutions marketing such as bulk and specialty fertilizers, Crop •Punjab: basmati rice, vegetables segments and a liberalized policy regime with care Chemicals, Hybrid Seeds, Agronomy services etc. •Rajasthan: coriander, cumin specific incentives for the high-priority food •Uttarakhand: rice, aromatic and medicinal processing sector provides an environment that is • Chlor-Vinyl Business: Caustic Soda, Chlorine, Calcium plants highly conducive for investments and exports in Carbide, PVC resins, PVC Compounds, Power and Cement •Uttar Pradesh: rice, potatoes, mangoes, North India. The northern region seeks an emphasis “North India has been a major • Value Added Business: Fenesta Windows focus area of our company's vegetables on the investments in production and processing of investment strategy. I feel North high value commodities for example, fruits, Strong presence in northern states can be a major pull for investors Packaged food and drink: Packaged food and both domestic & foreign due to vegetables and meat and poultry with enhanced DSCL has major manufacturing facilities located in Rajasthan and Uttar the demography, availability of drink constitutes a key potential thrust area in the skilled labour, education and quality. However, due to the perishable nature of Pradesh. The company has several manufacturing plants of fertiliser, urea, northern region. Haryana, Rajasthan and Punjab growing markets amongst many these products and lack of proper infrastructure chloro vinyl, PVC resins, PVC compounds, cement and a captive power more such strengths.” are leading exporters of rice, pickle, and guar. facilities in India, in peak season around 20-25 Mr Ajay S Shriram, generation capacity of 130 MW in Kota, Rajasthan. The company has sugar Chairman & Senior Managing These states also carries enough investment percent fruit and vegetable are spoilt in various Director, DCM Shriram plants located in Ajbapur, Rupapur, Hariawan and Loni in Uttar Pradesh, with a Consolidated Ltd opportunities in the manufacture and export of stages.24 Hence, to avoid these wastages and combined installed capacity of 33,000 tonnes crushed daily (TCD) besides a processed vegetables, noodles, dalia, tomato optimize the available resources of the region, the power generation capacity of 94.5 MW. The Group's Hybrid Seed operations have a global footprint puree, fruit juice, confectionery items and soft proposed components of the Agri-Investment 21 drinks. Regions for North Indian states include operating in Vietnam, Philippines and Indonesia besides a leading presence across India. The company's Fenesta windows fabrication units are located in Kota and Bhiwadi (NCR) amongst other places. Meat and poultry processing: India possesses development of post harvest infrastructure such as the largest livestock population in the world (Uttar special economic zones (SEZs), agro and food parks, Leveraging the advantage north warehouses, logistic hub and research institutes. Pradesh tops the supply of livestock in India) with DSCL has been operating in the northern region for many decades and has built a strong reputation 50 percent of world's buffaloes and 20 percent of With more focused agriculture diversification into among its stakeholders. 22 cattle. Punjab is one of the leading suppliers of high return crops, dairy, meat and poultry industry Additionally, the northern region has a large agrarian economy and is a leading consumer as well as livestock on account of being a leading state in and investments in development of post harvest producer of agricultural products. Given the importance of agriculture in the region and the strong agriculture and animal husbandry. However, meat infrastructure, the northern region is poised to play 25 agriculture linkages of DSCL businesses, North India provides large growing markets for the company. and meat processing industry still carries huge a crucial role in the fast growing agro-processing scope for expanding exports, especially in buffalo industry in India. Also demographics, labour availability, peaceful industrial relations, some progressive government policies and poultry meat, eggs and dairy products.23 in the operating states have been great incentives to keep growing our businesses in North India in the last few decades.

Giving back to the society

13 2012 14 Confederation of Indian Industry 2. Automotive Uttarakhand has also emerged as an attractive one of the largest plants of the country. Pantnagar destination for investment in recent times. in Uttarakhand has also emerged as strong hub of Traditionally, North India has been a hub for Automobile manufacturers along with many Country's most of the major Indian automotive automotive manufactures in northern region of the automobile manufacturing and auto ancillary units have a strong presence in the manufactures, such as Tata Motors, Hero country with manufacturing facilities of Ashok components, with Maruti Suzuki leading the northern region. The region contributes about MotoCorp, Ashok Leyland and Bajaj Auto, have Leyland, Bajaj Auto and Tata Motors. pack since it established its first factory in 1983. 32 percent of the auto sector's revenues. considerable presence in the region. Haridwar Maruti Suzuki was the one of the first few Specifically, Haryana contributes more than 50 The following table summarizes the presence of plant of Hero MotoCorp, world's largest ventures in the country involving a foreign percent of all passenger cars and two-wheelers major domestic and foreign players in states of the manufacturer of two wheelers, is considered to be automotive player which started the journey of in the country.26 Various state governments have northern region. transformation in Indian automotive sector. also promoted the industry in the region which Table 14: Major players in automotive in the northern region Since, with the government approving 100 is expected to continue attracting investments. percent FDI in the automotive sector, various State/ UT Domestic Foreign foreign players have entered the Indian market Haryana Hero MotoCorp Honda Motors (HMSI), Maruti Suzuki, Eicher Motors, India Yamaha Motor Pvt. Ltd and transformed the region's automotive Himachal Pradesh International Cars & Motors Limited, TVS - landscape considerably. Motors Table 13: Prominent auto hubs in northern India Punjab - SML Isuzu Limited State Vehicle segment Manufacturer City Rajasthan Ashok Leyland Honda Cars India Limited Uttar Pradesh Tata Motors Honda Cars India Limited, Yamaha Motor Haryana Two-wheelers Hero MotoCorp India Gurgaon Pvt. Ltd Uttarakhand Hero MotoCorp, Ashok Leyland, Bajaj Auto, - Yamaha Motor Faridabad Tata Motors, Mahindra & Mahindra

Source: Talent shortage to be acute in next five years, The Automotive Horizon, December 2010 Honda Motors Manesar Growth Drivers Figure 4: Revenue share by region Suzuki Gurgaon Certain inherent factors continue to drive auto manufacturing in this region:· North South Passenger vehicles Maruti Suzuki Gurgaon, Manesar • Supportive state government policies India, 32% India, 35% • Access to various technical and educational Construction JCB India Limited Faridabad Equipments institutions • Availability of educated and skilled workforce Himachal Pradesh Two-wheelers TVS Motors Nalagarh • Excellent road and rail network West Passenger vehicles International Cars Amb • Reliable power and communication network India, 33% & Motors Limited • Good banking and financing services

Commercial vehicles TAFE Tractors Parwanoo

Punjab Commercial vehicles SML Isuzu Limited Nawanshahar State governments have transformed themselves contributed significantly to the increase in the to become enablers over the years by allowing demand for two- and four-wheelers. Automobile Parts & Mohali manufacturers to develop clusters of ancillary The northern region is also home to various Equipments industries in the region. Liberal labour policies engineering and vocational institutes that offer a have also encouraged foreign investors to set up Uttarakhand Two wheelers Hero MotoCorp and Haridwar rich pool of engineering graduates and skilled bases in this region. Bajaj Auto professionals, which makes it an ideal destination Commercial vehicles Tata Motors and Pantnagar The twin phenomena of low car penetration and for knowledge-based and manufacturing sectors. and passenger vehicles Ashok Leyland the growing affordability of cars due to easy credit Further, the region has a large pool of semi-skilled Uttar Pradesh Two-wheelers India Yamaha Motor Greater Noida access and rising income level have continued to and unskilled labour for support services. contribute to the growing demand for Further, good labour relations are a prerequisite for Passenger vehicles Honda Siel Cars India Greater Noida automobiles in this region. The rapid rise of urban healthy industrial growth. Overall North India has a cities in the National Capital Region has also Note – above is the indicative list peaceful work environment, though there has been

26 Public Private Partnerships in India, Government of India, http://www.pppinindia.com/business-opportunities-haryana.php, 03 October, 2012

15 2012 16 Confederation of Indian Industry 2. Automotive Uttarakhand has also emerged as an attractive one of the largest plants of the country. Pantnagar destination for investment in recent times. in Uttarakhand has also emerged as strong hub of Traditionally, North India has been a hub for Automobile manufacturers along with many Country's most of the major Indian automotive automotive manufactures in northern region of the automobile manufacturing and auto ancillary units have a strong presence in the manufactures, such as Tata Motors, Hero country with manufacturing facilities of Ashok components, with Maruti Suzuki leading the northern region. The region contributes about MotoCorp, Ashok Leyland and Bajaj Auto, have Leyland, Bajaj Auto and Tata Motors. pack since it established its first factory in 1983. 32 percent of the auto sector's revenues. considerable presence in the region. Haridwar Maruti Suzuki was the one of the first few Specifically, Haryana contributes more than 50 The following table summarizes the presence of plant of Hero MotoCorp, world's largest ventures in the country involving a foreign percent of all passenger cars and two-wheelers major domestic and foreign players in states of the manufacturer of two wheelers, is considered to be automotive player which started the journey of in the country.26 Various state governments have northern region. transformation in Indian automotive sector. also promoted the industry in the region which Table 14: Major players in automotive in the northern region Since, with the government approving 100 is expected to continue attracting investments. percent FDI in the automotive sector, various State/ UT Domestic Foreign foreign players have entered the Indian market Haryana Hero MotoCorp Honda Motors (HMSI), Maruti Suzuki, Eicher Motors, India Yamaha Motor Pvt. Ltd and transformed the region's automotive Himachal Pradesh International Cars & Motors Limited, TVS - landscape considerably. Motors Table 13: Prominent auto hubs in northern India Punjab - SML Isuzu Limited State Vehicle segment Manufacturer City Rajasthan Ashok Leyland Honda Cars India Limited Uttar Pradesh Tata Motors Honda Cars India Limited, Yamaha Motor Haryana Two-wheelers Hero MotoCorp India Gurgaon Pvt. Ltd Uttarakhand Hero MotoCorp, Ashok Leyland, Bajaj Auto, - Yamaha Motor Faridabad Tata Motors, Mahindra & Mahindra

Commercial vehicles TAFE Tractors Parwanoo

26 Public Private Partnerships in India, Government of India, http://www.pppinindia.com/business-opportunities-haryana.php, 03 October, 2012

15 2012 16 Confederation of Indian Industry an instance of labour unrest in the recent past. the region. One such initiative is the establishment JCB - Building India through its northern roots However, state governments are sensitive to this of The International Centre for Automotive issue, and are lending their support in maintaining Technology (ICAT) as part of the National North India has been testimony to the success of JCB in India. The company, good labour-management relations. Automotive Testing and Research and Development which made a small beginning in India through a joint venture (JV) in 1979, (R&D) Infrastructure Project (NATRIP) at Manesar, has emerged to become India's leading manufacturer of construction Investment opportunities Haryana. This centre is expected to serve as a center equipments with one in every two machines sold being a JCB. After operating The availability of rich talent — including of excellence for component development, noise through the JV for 24 years, the company's growth touched new heights after engineers, product designers, researchers, and vibration and harshness (NVH) testing. 2003 when it acquired the entire stake in the JV. Today, it is also the fastest manufacturing professionals — is expected to growing company in its sector in India. encourage the industry to set up R&D centers in Company Performance–Strengthening its operations in North and expanding footprints Figure 5: Auto component industry investment (US$ billion) JCB started its Indian operation from Ballabgarh plant in 1979, which spreads over an area of 57 acres. In 2009, company invested INR3 billion to expand and upgrade the Ballabgarh plant, after which it became the largest backhoe "JCB continues to look for 2.50 opportunities to expand both the 2.30 facility in the world. The manufacturing capacity is 100 machines per shift in manufacturing footprint in North the backhoe segment. India and the dealer reach through its outlets." 1.70 JCB has two world class manufacturing facilities in Pune; The Heavy Line Mr Vipin Sondhi, Managing Director & CEO, JCB India Ltd manufacturing plant manufactures state of the art heavy equipments like tracked excavators, wheeled loaders and compactors and the other one 0.66 manufactures exports oriented fabrications and components. They both were inaugurated in the year 2007 and 2006 respectively. JCB Pune plant manufactures 4500 machines per annum. 0.10 In 2011, JCB India sold more than 27,000 units and recorded a turnover of over INR60 billion. Building a 2007-08 2008-09 2009-10 2010-11 2011-12E world-class facility in North India is the testimony to the company's commitment to India, which contributes more than 25 percent to the top line of its global parent.

Source: Automotive Component Manufacturers Association, The Automotive Horizon, www.acmainfo.com/pdf North India – a preferred investment destination for JCB /Industry-Statistics_23092011.pdf, 23 September 2011 JCB's manufacturing plant in the northern region has offered it several distinguishing advantages. First In order to strengthen skill sets and the skilled workforce, the Haryana Government has facilitated and foremost, the region, which is the home to a cluster of ancillary units, has enabled it to source its industry players to collaborate with the Haryana Technical Engineering Department to enhance labourers' components supplies at competitive prices. The company in turn has also been providing training and skills. support to vendors to help them improve their efficiencies and, hence build a symbiotic relationship.

With advances in manufacturing technology, the need for a skilled workforce further increases. Thus, a Secondly, the region also has a large pool of engineers and skilled labor thanks to a large number of large pool of skilled manpower and a growing technology base are expected to attract increased quality educational institutions in the region. According to a survey conducted in December 2011, the 27 investments. region has 221 universities and 9,325 colleges with enrollment capacity of around 5.2 million students. The emergence of automotive sector in this region has also led to the development of auto ancillary (High Education in India at a glance, UGC, Februrary 2012). It also has a language advantage with the industry for the last two decades. A number of automotive giants in Haryana region — Maruti Suzuki, majority speaking Hindi and English. Hero MotoCorp and Honda Motor — have helped a lot in building the cluster of ancillaries. Northern region has a well-developed cluster of auto component industry which also exports its components to Thirdly, the region's well-developed physical infrastructure in terms of roads, railways and airports other parts of the country. However, most of the ancillary players are developed by incumbents and work provides seamless connectivity among the plant site, demand centers and suppliers' units. It has also as per their policies only. helped the company reduce cost and stay competitive in the marketplace. Last but not the least, the With new automotive manufacturers coming in the region, there are lots of opportunities for new auto business environment and government policies in region have been supportive for industry. The state component players as well. Also, there is a scope for scale expansion for existing players that would lead governments have been prompt in extending a helping hand whenever required. For example, the state to the cost optimization and operational efficiencies in their existing operations as well. government helped the company in acquiring land adjoining to its existing plant in Ballabhgarh for Emergence of automotive hubs in this region especially in Haridwar, Pantnagar and Manesar would expansion. encourage new auto component players to enter the market and strengthen the auto ancillary industry. Beyond Business – giving back to society Thus, North India holds immense growth potential and offers private automobile manufacturers several JCB believes in inclusive growth and giving back to community. JCB has adopted villages and schools at resource-oriented advantages. However, with competition intensifying from other regions of the country, Jharsetli, Ladiapur in North India. Apart from imparting education, JCB imparts them vocational training the northern region needs to exhibit innovation in attracting new investments to this part of country. for earning livelihood.

27 Automotive Component Manufacturers Association, Auto Component Industry in India, 2012

17 2012 18 Confederation of Indian Industry an instance of labour unrest in the recent past. the region. One such initiative is the establishment JCB - Building India through its northern roots However, state governments are sensitive to this of The International Centre for Automotive issue, and are lending their support in maintaining Technology (ICAT) as part of the National North India has been testimony to the success of JCB in India. The company, good labour-management relations. Automotive Testing and Research and Development which made a small beginning in India through a joint venture (JV) in 1979, (R&D) Infrastructure Project (NATRIP) at Manesar, has emerged to become India's leading manufacturer of construction Investment opportunities Haryana. This centre is expected to serve as a center equipments with one in every two machines sold being a JCB. After operating The availability of rich talent — including of excellence for component development, noise through the JV for 24 years, the company's growth touched new heights after engineers, product designers, researchers, and vibration and harshness (NVH) testing. 2003 when it acquired the entire stake in the JV. Today, it is also the fastest manufacturing professionals — is expected to growing company in its sector in India. encourage the industry to set up R&D centers in Company Performance–Strengthening its operations in North and expanding footprints Figure 5: Auto component industry investment (US$ billion) JCB started its Indian operation from Ballabgarh plant in 1979, which spreads over an area of 57 acres. In 2009, company invested INR3 billion to expand and upgrade the Ballabgarh plant, after which it became the largest backhoe "JCB continues to look for 2.50 opportunities to expand both the 2.30 facility in the world. The manufacturing capacity is 100 machines per shift in manufacturing footprint in North the backhoe segment. India and the dealer reach through its outlets." 1.70 JCB has two world class manufacturing facilities in Pune; The Heavy Line Mr Vipin Sondhi, Managing Director & CEO, JCB India Ltd manufacturing plant manufactures state of the art heavy equipments like tracked excavators, wheeled loaders and compactors and the other one 0.66 manufactures exports oriented fabrications and components. They both were inaugurated in the year 2007 and 2006 respectively. JCB Pune plant manufactures 4500 machines per annum. 0.10 In 2011, JCB India sold more than 27,000 units and recorded a turnover of over INR60 billion. Building a 2007-08 2008-09 2009-10 2010-11 2011-12E world-class facility in North India is the testimony to the company's commitment to India, which contributes more than 25 percent to the top line of its global parent.

27 Automotive Component Manufacturers Association, Auto Component Industry in India, 2012

17 2012 18 Confederation of Indian Industry 3. Healthcare effective healthcare service delivery. A case in point is a total investment of INR300 million, Fortis The Indian healthcare sector is on the threshold of The northern region is home to key players in the contracting of radiology services in the plans to open 50 stand-alone dialysis centers tremendous opportunity. Medical tourism alone is the hospital business such as Max Healthcare government-run Sawai Man Singh Hospital in under the Renkare brand name across India in expected to generate revenues of approximately USD3 and Fortis. Hospital chains such as Apollo and Rajasthan. In 2004, the hospital entered into a PPP the next two years. In the first phase, the billion by 201328 while creating 10–48 million direct Artemis are also set to expand in the northern with Vardhaman Medicare Private Limited to provide company plans to set up six centers across the 33 and indirect jobs by 2020.29 Meanwhile, other triggers region. The expansion and operational plans of Magnetic Resonance Imaging (MRI) and Computerized Delhi NCR. Tomography (CT) scan facilities to patients at low rates such as rising investments from global players and the the key hospitals chains concentrated in the In October 2011, Life Healthcare Group, the to offer such facilities at the lowest possible cost.31 low penetration of health insurance are set to create region are indicative of a friendly business third-largest private hospitals group in South significant opportunities in the sector. The opportunity environment and more importantly the Expansion plans - Specialized services (dialysis Africa, acquired 26 percent stake in Delhi- is likely to be supplemented by the fact that there is a opportunity in the region. The following table centers): Recently, a number of investments in the based Max Healthcare Institute for wide bed deficit in India. The number of hospitals summarizes the presence of major domestic region suggest heightened focus on the sector. approximately INR5165 million, in what is (government and private) that exist currently do not and foreign players in selected states of the Metropolis Healthcare (Diagnostics Company) has probably the largest FDI in the Indian have the capacity and infrastructure to service the northern region. announced three greenfield and two brownfield healthcare sector. Max Healthcare Institute demands of the population. ventures in North India to strengthen its business and plans to invest in the expansion of the business provide quality diagnostic services in FY12.32 by setting up four new super-specialty Table 15: Major players in healthcare in the northern region 34 In the hospital business, Fortis Healthcare launched its hospitals in North India by the end of 2012. State/ UT Domestic Foreign first stand-alone dialysis center Renkare in Delhi. With Delhi Max Healthcare, Fortis Healthcare Abbott Vascular Karl Storz Endoscopy

Haryana Alchemist, Artemis, Max Healthcare, Quest Diagnostics, Columbia Asia Medanta

Punjab Fortis Healthcare Columbia Asia Uttarakhand Max Healthcare - Uttar Pradesh Apollo, Fortis Healthcare Columbia Asia Source: KPMG in India analysis

Growth Drivers The northern region is expected to play an important Governments have also initiated schemes, role in the progress of India's healthcare landscape. It including the National Rural Health Mission offers essential ingredients such as skilled manpower, (NRHM), for the welfare of the underprivileged tax-free real estate and other investment-friendly in the country. However, the effective policies. The region's healthcare sector is currently implementation of such schemes would witnessing a number of developments, which are require the co-operation and participation of indicative of the growing importance of the industry. private players. Various private parties have agreed to collaborate with In August 2012, the Lok Sabha passed a bill to northern state governments to launch diverse set up more AIIMS-like institutes in India. Two healthcare business models. Companies such as Cisco, of the six proposed institutes will be located in Roche and GE are among the many players investing in the northern region (Jodhpur in Rajasthan and PPP models in the region.30 Rishikesh in Uttarakhand). These institutes will The sector has also received considerable support from raise the standard of healthcare delivery in the state governments as well as from Central region by harnessing research and effective Government. This includes monetary benefits and a healthcare delivery. reduction in land requirements for medical colleges in Investment opportunities difficult and unreachable areas, concessional duty of 5 percent on the diagnostic, medical equipment and PPP opportunities for private players: consumable segments, and 100 percent FDI permitted Professionals have cited the PPP route as the for all health-related services through the automatic future of improved healthcare delivery in India. route. In many northern states, governments and private players are collaborating to achieve

31PPP cell, http://www.pppinindia.com/, accessed on 20 September 2012 28 “Healthy Business: Will Medical Tourism Be India's Next Big Industry?” - India Knowledge@Wharton , 2 June 2011 32“Metropolis Healthcare strengthens its presence in North India”, Express Pharma, 8 June 2012 29 Indian business review – March 2012 33“Max Healthcare plans to open four new super-specialty hospitals”, Business Standard, 30 July 2011 30PPP cell , http://www.pppinindia.com/, accessed on 20 September 2012 34“LifeHealth inks pack with Max”, Financial Chronicle, 16 January 2012

19 2012 20 Confederation of Indian Industry 3. Healthcare effective healthcare service delivery. A case in point is a total investment of INR300 million, Fortis The Indian healthcare sector is on the threshold of The northern region is home to key players in the contracting of radiology services in the plans to open 50 stand-alone dialysis centers tremendous opportunity. Medical tourism alone is the hospital business such as Max Healthcare government-run Sawai Man Singh Hospital in under the Renkare brand name across India in expected to generate revenues of approximately USD3 and Fortis. Hospital chains such as Apollo and Rajasthan. In 2004, the hospital entered into a PPP the next two years. In the first phase, the billion by 201328 while creating 10–48 million direct Artemis are also set to expand in the northern with Vardhaman Medicare Private Limited to provide company plans to set up six centers across the 33 and indirect jobs by 2020.29 Meanwhile, other triggers region. The expansion and operational plans of Magnetic Resonance Imaging (MRI) and Computerized Delhi NCR. Tomography (CT) scan facilities to patients at low rates such as rising investments from global players and the the key hospitals chains concentrated in the In October 2011, Life Healthcare Group, the to offer such facilities at the lowest possible cost.31 low penetration of health insurance are set to create region are indicative of a friendly business third-largest private hospitals group in South significant opportunities in the sector. The opportunity environment and more importantly the Expansion plans - Specialized services (dialysis Africa, acquired 26 percent stake in Delhi- is likely to be supplemented by the fact that there is a opportunity in the region. The following table centers): Recently, a number of investments in the based Max Healthcare Institute for wide bed deficit in India. The number of hospitals summarizes the presence of major domestic region suggest heightened focus on the sector. approximately INR5165 million, in what is (government and private) that exist currently do not and foreign players in selected states of the Metropolis Healthcare (Diagnostics Company) has probably the largest FDI in the Indian have the capacity and infrastructure to service the northern region. announced three greenfield and two brownfield healthcare sector. Max Healthcare Institute demands of the population. ventures in North India to strengthen its business and plans to invest in the expansion of the business provide quality diagnostic services in FY12.32 by setting up four new super-specialty Table 15: Major players in healthcare in the northern region 34 In the hospital business, Fortis Healthcare launched its hospitals in North India by the end of 2012. State/ UT Domestic Foreign first stand-alone dialysis center Renkare in Delhi. With Delhi Max Healthcare, Fortis Healthcare Abbott Vascular Karl Storz Endoscopy

Haryana Alchemist, Artemis, Max Healthcare, Quest Diagnostics, Columbia Asia Medanta

Punjab Fortis Healthcare Columbia Asia Uttarakhand Max Healthcare - Uttar Pradesh Apollo, Fortis Healthcare Columbia Asia Source: KPMG in India analysis

19 2012 20 Confederation of Indian Industry Fortis Healthcare — Building a healthier tomorrow 4. Information Technology/Business Process Outsourcing

Fortis commenced its operations in the healthcare delivery business by setting The IT-BPO sector is among the biggest growth Various global and domestic IT companies, such drivers of the Indian economy. It has contributed as Accenture, Wipro, TCS, HCL, SAP and Infosys up a 300-bed hospital in Mohali, Punjab in 2001. It has emerged as one of the to the growth of the northern region as well. also have a presence in the region through leading private healthcare service providers in the country with 66 healthcare With the BPO sector completing more than delivery and research centers. The following delivery facilities across the nation with a capacity of approx. 2800 owned three decades in North India, the region has table summarizes the presence of major beds and approx. 1,000 beds under management. been a hub for some of the largest BPO domestic and foreign players in the nine Fortis has grown from a single hospital in 2001 to over 14 operational companies in the country, including Genpact, states/UT of the northern region. healthcare facilities in the northern region today with plans for expansion in Teleperformance, Convergys and IBM Daksh. the coming years. Presently, more than half of its bed capacity is in the Table 16: Major players in IT-BPO in the northern region northern region contributing 56% to the annual revenue of its India State/ UT Domestic Foreign operations (FY 2012). Fortis's annual for India for FY 2012 was INR 23,460 "India ranks very low amongst the Delhi Acro Technologies, Newgen Software Accenture nations of the world in its Health million. Its annual revenues for India have been growing at a staggering 46% Technologies, NGEN Media Services, Apollo outcomes and the development of its Health Street (5 year CAGR) summing up the success story of Fortis in the country. Healthcare deliver infrastructure; many of the Northern States Haryana Tata Consultancy Services, Aegis BPO, IBM-Daksh, Microsoft, Sapient, SAP, Genpact, North Indian consumption is characterized by brand image and quality, often contribute to this positioning. Herein Infosys Agilent Technologies, Aricent Technologies, lies the huge opportunity for Fortis to at par with price competitiveness; this makes brand management an important Genpact, Royal Bank of Scotland (IT-BPO contribute to Nation building by Division), Ameriprise Financial aspect of the business, also increasing visibility across other geographies. improving access, affordability and reliability of healthcare services and Himachal Pradesh Himachal Futuristic Communications Ltd., - North India to remain the growth engine for Fortis aggressively participating in talent Microtek, Mediaman Infotech generation" Fortis has a strong focus and substantial presence in North India especially in Mr Malvinder M Singh, Jammu & Kashmir Aegis, Ideogram, Digitech Systems, - Executive Chairman, Fortis Healthcare Sanguine Infotech the NCR (National Capital Region consisting of Delhi, Gurgaon, Noida and Punjab Infosys, Drish Infotech Limited Dell, Fujitsu, Tarkia, Quark Faridabad) and Punjab. Many favorable factors fuel demand and make this Rajasthan Infosys, Tech Mahindra, Wipro, HCL Genpact, EXL, Deutsche Bank (IT-BPO region an attractive and profitable investment hub for Fortis. There is a strong requirement for quality division) healthcare services in the Northern region due to a burgeoning middle class, growing awareness, the Uttar Pradesh HCL Technologies, HCL Infosystems, Tech Computer Science Corporation, Adobe need for affordable healthcare and a surge in life-style diseases. Mahindra, Birlasoft, Saigun Technologies Systems, Barclays Shared Services

Further, there are various government initiatives in the pipeline which will provide an impetus to the Uttarakhand Wipro, HCL, Softmart HP Chandigarh Infosys, Tech Mahindra, Wipro, Seasia Agilent, Raytheon healthcare business in the northern region. The Twelfth five-year plan proposes an increased funding to Consulting, Amadeus the sector for the purchase and maintenance of ambulances, the provision of free medicines, the planned control of anemia in children under five years of age and the strengthening of the enforcement The sector generates a major share of its revenues through exports of IT services from companies mechanism on drug control and food safety. The plan also envisages the creation of a Central established in the Software Technology Parks of India (STPI). North India is home to 12 STPI centers. STPI Procurement Agency for the purchase of medical supplies and drugs, thereby improving the efficiency of reported exports of INR275.7 billion in 2010-11, with 12.8 percent share of the country's exports. 35 healthcare centers. Figure 6: Export revenues of North India, 2010-11 Challenges and the way forward

Fortis plans to continue its expansion strategy in the North. Approximately a third of the proposed State/UT Export Revenues additional hospitals in the next few years will be based in North India. Fortis also aims to diversify its (INR Billion) business portfolio to six different segments — Hospitals, Stand-alone dialysis centers, Day care centers, Haryana 136.5 Diagnostic medicine, Imaging and Medical and Paramedical Education. This is just the beginning of this Uttar Pradesh 109.4 Rest of company's association with North India! North Delhi 15.4 India India 87% 13% Rajasthan 4.9 Punjab 4.4 Chandigarh 4.1 Uttarakhand 0.9

Source: Software Technology Park of India 2010 –11 annual report

35 Software Technology Park of India (STPI), 2010 –11 annual report, www.stpi.in/writereaddata/links/356235275AnnualReport.pdf, accessed September 2012

21 2012 22 Confederation of Indian Industry Fortis Healthcare — Building a healthier tomorrow 4. Information Technology/Business Process Outsourcing

Source: Software Technology Park of India 2010 –11 annual report

35 Software Technology Park of India (STPI), 2010 –11 annual report, www.stpi.in/writereaddata/links/356235275AnnualReport.pdf, accessed September 2012

21 2012 22 Confederation of Indian Industry Growth Drivers large pool of manpower with English Table 18: Major players operating in infrastructure sector in the northern region proficiency. Additionally, supportive state IT State/ UT Key Players The region has cities and towns, such as policies are driving the IT sector.36 Gurgaon, Delhi and Noida with well established Delhi GMR Infrastructure, Reliance Infrastructure Ltd., Indraprastha Power Generation Ltd., L&T, Gammon Infrastructure Projects Ltd. IT-BPO sector companies. Moreover, there are The IT-BPO sector in the northern region has emerging cities such as Chandigarh, Jaipur, evolved significantly over time. Initially, Gurgaon Haryana Reliance Infrastructure Ltd., IL&FS, L&T, D S Construction Lucknow and Kanpur that are striving to emerged as the hotbed of the BPO industry, Himachal Pradesh IL&FS, Gammon Infrastructure Projects Ltd., NTPC, Jaiprakash Hydro, Jaiprakash Associates establish their presence in the IT-BPO sector to along with establishment of IT major, HCL in Jammu & Kashmir GVK Power, HCC, Afcons Infrastructure, IRCON International Ltd. tap the growth potential of this industry and to Noida. Further, in 2010–11 Punjab recorded a Y- Punjab GMR Infrastructure, IVRCL, Gammon Infrastructure Projects Ltd. generate employment. o-Y increase of 26.9 percent in export revenues. Rajasthan Reliance Infrastructure Ltd., IRB Infrastructure, NTPC At present, the region has about 12 operating Investment opportunities Uttar Pradesh Jaiprakash Associates, Lanco, Reliance Infrastructure Ltd., NTPC, NCC Ltd., Gammon SEZs for the IT-BPO industry as well as significant Infrastructure Projects Ltd. To improve further prospects for the IT-BPO manpower from renowned technical institutes Uttarakhand NTPC, BHEL, Era Infra sector in the northern region, several state such as the Indian Institute of Technology (IIT) Chandigarh GMR Infrastructure, SPML Infra Ltd. governments have devised new schemes. and Delhi College of Engineering, along with a Source: KPMG in India analysis

Table 17: Policy initiatives to promote IT-BPO sector Roads State Key Initiative A wide network of state highways and roads set the target to increase the India's highway Rajasthan The Rajasthan Government, through its Rajasthan Investment Promotion Scheme 2010, provides the northern region with excellent length to about 85,000km by 2016-17.45 provides 50 percent exemption on both stamp duty (on land registration) and electricity connectivity. It facilitates the easy movement of duty for seven years as well as incentives of INR10,000 per employee for companies A substantial portion of this amount is expected employing 500 people in the case of IT and 1,000 for BPOs.37 goods and people across all major cities of the to be invested in the northern region, which northern region and the commercial hubs of Uttar Pradesh Uttar Pradesh Government is establishing software technology parks in Agra, Kanpur and would open opportunities for private players, as Allahabad as well as striving to collaborate with IIT-Kanpur, IIM-Lucknow and IIIT- western and eastern India. The northern region Allahabad to develop the Kanpur-Lucknow cyber corridor.38 the government is increasingly focusing on is also home to some of the world-class Additionally, it plans to establish the UP-wide Area Network (UPNET) for voice, data and awarding projects through the PPP route. video transmission. expressways such as the Greater Noida-Agra Further around 28,500km of the total length Uttarakhand Plans to develop a state‐of‐the‐art information technology park on more than 60 acres of Yamuna Expressway, the Zirakhpur-Parwanoo under national highways development project land on Sahastradhara Road, Dehradun.39 Himalayan Expressway, the Delhi-Gurgaon (NHDP) is still to be awarded.46 Some of the Jammu and Kashmir To promote IT-BPO in Jammu & Kashmir, the State Government has established a Expressway and the Delhi-Noida Flyway, among 40 proposed road projects in north India are Jaipur software technology park in Rangreth. others. The total length of the National to NH 11 Sikar-Bikaner (200 km), NH 8 Gomti Haryana The Haryana Government is expanding beyond Gurgaon to Panipat, Sonipat and Highways in the region is around 23,000km, Faridabad to set up five new IT-BPO SEZs.41 Ka Chauraha-Udaipur (83 km), Development of which constitutes around 30 percent of the 8-lane access controlled expressway from country's total highway network.43 Sanouta Bridge (Greater Noida) to near Purkaji With new SEZ establishments as well as improvements Government of India has awarded so far, the In the Twelfth Five Year Plan, the total projected (district Muzaffarnagar) and Palia-Sahjahanpur- in infrastructure and favourable policies, the northern northern region accounts for 141, with a total expenditure on roads and highways is around Hardoi-Lucknow Road (SH-25) etc. region is expected to continue its competitive position cost of approximately INR805 billion. Within INR5 trillion (USD100 billion).44 Government has as a hub of the IT-BPO industry. the region, Rajasthan and Punjab are the leading states in executing PPPs projects, with Figure 7: Length of National Highways, as on September 2012 (km) 5. Infrastructure 61 and 34 projects awarded to them, Uttarakhand 2,042 (8.9%) The northern region has impressive infrastructure respectively. However, in terms of the value of facilities such as well–developed roads, an extensive projects, Uttar Pradesh scores the highest, at Rajasthan 42 7,130 Uttar Pradesh INR286 billion from 18 projects. Northern (31.0%) 7,818 (34.0%) railway network, modern airport facilities and an Rest of India India efficient power system. Further, the northern states are 53,807 23,011 The following table summarizes the presence (70%) (30%) promoting PPPs as a preferred mode of developing of major domestic and foreign players in Punjab Delhi infrastructure. Of the 740 PPP projects that the selected states of the northern region. 1,557 (6.8%) 80 (0.3%)

Jammu & Kashmir Haryana 1,245 (5.4%) 1,633 Himachal Pradesh(7.1%) 1,506 36 Special Economic Zones of India, Ministry of Commerce & Industry, Department of Commerce, List of Operational SEZs in India, (6.5%) http://www.sezindia.nic.in/writereaddata/pdf/ListofoperationalSEZs.pdf , accessed September 2012 37Rajasthan India Emerging IT/ITeS hub, Bureau of Investment Promotion Rajasthan, p7. Source: State wise length of National Highways in India, http://morth.nic.in/index2.asp? 38Indian States Economy and Business – Uttar Pradesh, IBEF, p16. slid=32&sublinkid=12&lang=1, accessed October 12, 2012 39IT Park at Dehradun, Uttaranchal Biz, http://www.uttaranchalbiz.com/industrial-estates/it-park-dehradun/, accessed October 2012 40STPI Srinagar – Center of Excellence, Software Technology Park of India (STPI), Srinagar Rangreth, 43 State wise length of National Highways in India, http://morth.nic.in/index2.asp?slid=32&sublinkid=12&lang=1, accessed October 12, 2012 http://www.stpjk.in/aboutus.asp, accessed October 2012 44 Invest India, Roads and Highways, http://www.investindia.gov.in/?q=roads-and-highways-sector, accessed on 3 October 2012; 41Haryana – The Bread Basket of India, IBEF, November, 2011, p28. assuming exchange rate of 1USD=INR50 42Source: CII, Public Private Partnerships in the Northern Region 45 & 4612th Five Year Plan Report of the Working Group on Central Roads Sector, Planning Commission

23 2012 24 Confederation of Indian Industry Growth Drivers large pool of manpower with English Table 18: Major players operating in infrastructure sector in the northern region proficiency. Additionally, supportive state IT State/ UT Key Players The region has cities and towns, such as policies are driving the IT sector.36 Gurgaon, Delhi and Noida with well established Delhi GMR Infrastructure, Reliance Infrastructure Ltd., Indraprastha Power Generation Ltd., L&T, Gammon Infrastructure Projects Ltd. IT-BPO sector companies. Moreover, there are The IT-BPO sector in the northern region has emerging cities such as Chandigarh, Jaipur, evolved significantly over time. Initially, Gurgaon Haryana Reliance Infrastructure Ltd., IL&FS, L&T, D S Construction Lucknow and Kanpur that are striving to emerged as the hotbed of the BPO industry, Himachal Pradesh IL&FS, Gammon Infrastructure Projects Ltd., NTPC, Jaiprakash Hydro, Jaiprakash Associates establish their presence in the IT-BPO sector to along with establishment of IT major, HCL in Jammu & Kashmir GVK Power, HCC, Afcons Infrastructure, IRCON International Ltd. tap the growth potential of this industry and to Noida. Further, in 2010–11 Punjab recorded a Y- Punjab GMR Infrastructure, IVRCL, Gammon Infrastructure Projects Ltd. generate employment. o-Y increase of 26.9 percent in export revenues. Rajasthan Reliance Infrastructure Ltd., IRB Infrastructure, NTPC At present, the region has about 12 operating Investment opportunities Uttar Pradesh Jaiprakash Associates, Lanco, Reliance Infrastructure Ltd., NTPC, NCC Ltd., Gammon SEZs for the IT-BPO industry as well as significant Infrastructure Projects Ltd. To improve further prospects for the IT-BPO manpower from renowned technical institutes Uttarakhand NTPC, BHEL, Era Infra sector in the northern region, several state such as the Indian Institute of Technology (IIT) Chandigarh GMR Infrastructure, SPML Infra Ltd. governments have devised new schemes. and Delhi College of Engineering, along with a Source: KPMG in India analysis

23 2012 24 Confederation of Indian Industry Railways loan agreement for an amount of USD 975 size reaching to INR75 billion by 2020 from growing in India. Currently, the GA fleet in India million with the Dedicated Freight Corridor current level of INR30 billion.54 Ground handling comprises around 800 small aircraft and 300 Except for a few hilly areas, the northern region Corporation of India Ltd (DFCCIL). Like Western business is also witnessing strong growth and is helicopters. The industry market size is expected is well-connected through an extensive railway Dedicated Freight Corridor, the eastern corridor expected to double from present INR20 billion to to grow at 10% per annum to reach around network. The total length of railway tracks in the 55 56 is expected to promote investment in the states INR39 billion by 2017. Several domestic and INR16 billion by 2016-17. In north India, the region is around 19,300km, representing almost 47 encompassing them as well as to ease the traffic global players such as SATS, Celebi, Bird Group, demand for non-scheduled airlines business is 30 percent of India's total railway length. The load on existing Indian Railways network. Menzies are operating in this space and have expected to grow led by increased demand for government is currently working to connect the Development of Multi Modal Freight Logistics expansion plans. North India is expected to business and tourism travel. Air-charter hilly areas as well. For example, work to connect Park across the Dedicated Freight Corridors is emerge as a preferred destination for MRO and companies are expanding and planning to start Srinagar and Baramullah is underway in Jammu another PPP opportunity to be leveraged. ground handling business due to the growing regional operations. For example, Religare & Kashmir. Further, Udhampur-Katra (25km), aircraft fleet, location advantage and availability Voyages has plans to start a North India-based Mass rapid transportation system Katra-Qazigund (148km) and Qazigund- of talent. airline that would connect destinations such as Baramullah (119km) rail links have been given 57 The Delhi Metro has become the lifeline of Delhi Amritsar, Chandigarh and Dharamshala. the status of national priority projects, which will The non-scheduled airline business is also 48 — with more than two million people in Delhi expedite the construction of these rail links. using it daily. Further, a rapid regional mass Table 19: Major airports in North India — passenger and cargo traffic (2011–12) Further, there are opportunities for railway transportation system is proposed between Delhi locomotives and rolling stock manufacturing and nearby towns. The three corridors are in State/ UT Passenger traffic (million) Freight (in tonnes) units. Northern region is home for several advanced stage of planning – Delhi-Ghaziabad- Domestic International Domestic International railway coach and wagon manufacturing units. Meerut (67km), Delhi-Gurgaon-Rewari-Alwar Delhi 25.1 10.8 200,525 367,829 Rail Coach Factory in Punjab, The rail coach (158km) and Delhi-Sonepat-Panipat (89km). Amritsar 0.5 0.4 89 6,998 factory in Rae Bareli is also expected to Recently government has approved a dedicated Srinagar 1.6 - 2,396 - manufacture 1,000 lightweight stainless steel 640km rail network plan for National Capital Jaipur 1.6 0.2 6,475 231 coaches annually. Diesel Locomotive Works in Region with an estimated cost of INR 141.5 Lucknow 1.7 0.4 3,690 839 52 Varanasi, and Modern Industries in Ghaziabad billion. Further, like Delhi, some other major Varanasi 0.7 0.1 356 - are just a few companies that operate from cities of north India are building their rapid Jammu 0.9 - 1,265 - northern region and supply to Indian railways. transit system. The metro is under-construction Chandigarh 0.8 - 2,049 - in Gurgaon and Jaipur; and planned in Jaipur, Leh 0.4 - 1,336 - Dedicated freight corridor Lucknow, Kanpur, Chandigarh, and Ludhiana. Source: Airports Authority of India The Delhi Mumbai Industrial Corridor (DMIC) is Aviation expected to improve the connectivity of the Power region with the western parts of the country. The northern region has excellent connectivity to In terms of power, the northern region fares better than India's average. The power deficit in the northern The project is expected to cost USD90 billion other airports of the country and major 58 region in 2011–12 was 6.4 percent, compared with an all-India average of 8.5 percent. and 26 percent stake of DMIC would be hold by international cities. India's busiest airport — 49 the Japanese Government. Apart from Indira Gandhi International Airport — is also Figure 8: Installed electricity generation capacity in major North Indian states facilitating the rapid movement of goods, DMIC located in the region. The region manages envisaged setting up 24 industrial investment around 28 percent of India's total air passenger 14 13.7 53 50 traffic and 26 percent of air cargo. Further, 12 areas (nodes). For phase I, 12 nodes have been 4.9 10.3 shortlisted and six of them fall in the northern there are plans to strengthen aviation 10

2.3 7.6 region. These nodes are Dadri-Noida-Ghaziabad, infrastructure in the region through the 8 7.1 6.9 3.6 Manesar-Bawal, Khushkhera-Bhiwadi- establishment of greenfield airports such as the 6 2.9 2.1 1.9 Neemrana, Meerut-Muzaffarnagar, Faridabad- Taj Airport (UP), Kushinagar and Bathinda; GW 1.4 0.1 3.7 4 5.1 Palwal, and Jaipur-Dausa. In the Uttar Pradesh modernizing and expanding existing airports 1.0 2.6 2.4 2 5.2 5.1 4.1 5.1 0.7

0.1 1.7 1.3 itself, DMIC is expected to facilitate investments such as Chandigarh, Jammu, Jaipur, Lucknow 0.4 0.0 1.7 0.9 1.4 1.1 of INR750 billion in the Greater Noida and Udaipur and; developing Delhi's airport as a 0 & b hi na a hal 51 desh than investment zone of Uttar Pradesh. transit hub. These expansions would open new hand desh rya Del shmir ak Punj opportunities for infrastructure players. Pra Ha ar ammu Pra

Ka Himac

Rajas J Another corridor is planned between North and ar

State Private Central Utt

East India - Eastern Dedicated Freight Corridor. Along with airports and airlines, significant Utt The Eastern Corridor will traverse six states, four opportunity exists for maintenance, repair and Source: CEA monthly report on power generation, CEA, August 2012 of which are in North India – U.P., Delhi, overhaul (MRO), ground handling, and general Haryana and Punjab. The World Bank is aviation (GA) segments. The country has the financing this project and has entered into a potential to become a MRO hub with market

47State-wise Railway Network (Route Kilometers) in India, Indiastat.com, March 2011 48Jammu and Kashmir, IBEF, November 2011 49Delhi-Mumbai industrial corridor, http://delhimumbaiindustrialcorridor.com/, accessed on 25 October 2012 54India Aviation 2012, International conference on civil aviation, Ministry of civil aviation 50Delhi-Mumbai industrial corridor, http://delhimumbaiindustrialcorridor.com/, accessed on 3 October 2012 5512th Five Year Plan Report of the working group on civil aviation, Planning Commission 51 “Japan-aided DMIC likely to bring Rs 75,000-cr investment to UP”, Business Standard, 13 August 2012 56 India Aviation 2012, International conference on civil aviation, Ministry of civil aviation 52Dedicated rail network plan for NCR on track, The Economic Times, 16 May 2012 57 Charters do well, airlines don't, DNA, 2 April 2012 53Airports Authority of India 58Power Supply Position, CEA, March 2012

25 2012 26 Confederation of Indian Industry Railways loan agreement for an amount of USD 975 size reaching to INR75 billion by 2020 from growing in India. Currently, the GA fleet in India million with the Dedicated Freight Corridor current level of INR30 billion.54 Ground handling comprises around 800 small aircraft and 300 Except for a few hilly areas, the northern region Corporation of India Ltd (DFCCIL). Like Western business is also witnessing strong growth and is helicopters. The industry market size is expected is well-connected through an extensive railway Dedicated Freight Corridor, the eastern corridor expected to double from present INR20 billion to to grow at 10% per annum to reach around network. The total length of railway tracks in the 55 56 is expected to promote investment in the states INR39 billion by 2017. Several domestic and INR16 billion by 2016-17. In north India, the region is around 19,300km, representing almost 47 encompassing them as well as to ease the traffic global players such as SATS, Celebi, Bird Group, demand for non-scheduled airlines business is 30 percent of India's total railway length. The load on existing Indian Railways network. Menzies are operating in this space and have expected to grow led by increased demand for government is currently working to connect the Development of Multi Modal Freight Logistics expansion plans. North India is expected to business and tourism travel. Air-charter hilly areas as well. For example, work to connect Park across the Dedicated Freight Corridors is emerge as a preferred destination for MRO and companies are expanding and planning to start Srinagar and Baramullah is underway in Jammu another PPP opportunity to be leveraged. ground handling business due to the growing regional operations. For example, Religare & Kashmir. Further, Udhampur-Katra (25km), aircraft fleet, location advantage and availability Voyages has plans to start a North India-based Mass rapid transportation system Katra-Qazigund (148km) and Qazigund- of talent. airline that would connect destinations such as Baramullah (119km) rail links have been given 57 The Delhi Metro has become the lifeline of Delhi Amritsar, Chandigarh and Dharamshala. the status of national priority projects, which will The non-scheduled airline business is also 48 — with more than two million people in Delhi expedite the construction of these rail links. using it daily. Further, a rapid regional mass Table 19: Major airports in North India — passenger and cargo traffic (2011–12) Further, there are opportunities for railway transportation system is proposed between Delhi locomotives and rolling stock manufacturing and nearby towns. The three corridors are in State/ UT Passenger traffic (million) Freight (in tonnes) units. Northern region is home for several advanced stage of planning – Delhi-Ghaziabad- Domestic International Domestic International railway coach and wagon manufacturing units. Meerut (67km), Delhi-Gurgaon-Rewari-Alwar Delhi 25.1 10.8 200,525 367,829 Rail Coach Factory in Punjab, The rail coach (158km) and Delhi-Sonepat-Panipat (89km). Amritsar 0.5 0.4 89 6,998 factory in Rae Bareli is also expected to Recently government has approved a dedicated Srinagar 1.6 - 2,396 - manufacture 1,000 lightweight stainless steel 640km rail network plan for National Capital Jaipur 1.6 0.2 6,475 231 coaches annually. Diesel Locomotive Works in Region with an estimated cost of INR 141.5 Lucknow 1.7 0.4 3,690 839 52 Varanasi, and Modern Industries in Ghaziabad billion. Further, like Delhi, some other major Varanasi 0.7 0.1 356 - are just a few companies that operate from cities of north India are building their rapid Jammu 0.9 - 1,265 - northern region and supply to Indian railways. transit system. The metro is under-construction Chandigarh 0.8 - 2,049 - in Gurgaon and Jaipur; and planned in Jaipur, Leh 0.4 - 1,336 - Dedicated freight corridor Lucknow, Kanpur, Chandigarh, and Ludhiana. Source: Airports Authority of India The Delhi Mumbai Industrial Corridor (DMIC) is Aviation expected to improve the connectivity of the Power region with the western parts of the country. The northern region has excellent connectivity to In terms of power, the northern region fares better than India's average. The power deficit in the northern The project is expected to cost USD90 billion other airports of the country and major 58 region in 2011–12 was 6.4 percent, compared with an all-India average of 8.5 percent. and 26 percent stake of DMIC would be hold by international cities. India's busiest airport — 49 the Japanese Government. Apart from Indira Gandhi International Airport — is also Figure 8: Installed electricity generation capacity in major North Indian states facilitating the rapid movement of goods, DMIC located in the region. The region manages envisaged setting up 24 industrial investment around 28 percent of India's total air passenger 14 13.7 53 50 traffic and 26 percent of air cargo. Further, 12 areas (nodes). For phase I, 12 nodes have been 4.9 10.3 shortlisted and six of them fall in the northern there are plans to strengthen aviation 10

Ka Himac

Rajas J Another corridor is planned between North and ar

State Private Central Utt

25 2012 26 Confederation of Indian Industry Further, installed power-generation capacity in the northern region was 56,089 MW vis-à-vis India's total United Technologies Corporation India – A bridge to the future 59 capacity of 207,006 MW, as of August 2012. Most of the states in the northern region have higher per The northern region occupies a special significance for United Technologies capita power consumption than the all-India average per capita power consumption of 779 KWh. These Corporation India Pvt. Ltd. that is headquartered in Delhi. United Technologies are Punjab (1,663 KWh), Haryana (1,491 KWh), Delhi (1,447 KWh), Himachal Pradesh (1,145 KWh), Corporation (UTC), a Hartford based conglomerate is a diversified company that Jammu & Kashmir (968 KWh), Uttarakand (930 KWh) and Rajasthan (811 KWh). provides a broad range of high-technology products and services to the global In the Twelfth Five Year Plan, the government plans to add 90,000 MW of new capacity, which would aerospace and building systems industries. UTC's commercial businesses are Otis require an investment of INR6,380 billion.60 As per the Twelfth Five Year Plan report of working group, Elevators & Escalators and the UTC Climate, Controls & Security, which is a leading northern states are expected to have a capacity addition of around 13,800 MW during 2012-2017. This is provider of air-conditioning, fire, security and automation products and solutions. likely to create new avenues of growth for power companies. The broad portfolio of products and services includes Carrier Air-Conditioning and Refrigeration, Toshiba Air-Conditioning, Edwards Fire Alarms, Novec & Argonite Table 20: North Region Twelfth Five Year Plan Capacity (MW) Gas Suppression, Lenel On-Guard, Chubb Alba Security Solutions, Carrier-Race State/ UT Thermal Hydro Nuclear Grand Total Automation Solutions, ALC Building Management System and Agnice Fire Haryana 660 - - 660 Protection. The aerospace businesses are Sikorsky aircraft and the UTC Propulsion “Today, while the Northern Himachal Pradesh - 2,762 - 2,762 & Aerospace Systems, which includes Pratt & Whitney and UTC Aerospace Region houses 20% of our Jammu & Kashmir - 780 - 780 Systems. UTC Aerospace Systems is among the world's largest suppliers of employee population and is home to 2 of our largest factories in Punjab 1,590 - - 1,590 advance aerospace products and services and its portfolio of products and services India, there is clearly a lot of potential to improve and further Rajasthan 1,700 - 1,400 3,100 include Hamilton Sundstrand and Goodrich. grow our presence in the region. We are fully committed to further Uttar Pradesh 3,920 - - 3,920 UTC businesses have a pan India presence, catering to more than 100 locations in investment and growth in the Uttarakhand - 1,025 - 1,025 region.” Mr Zubin Irani, 60 cities and having four manufacturing centres, and is focussed on strengthening Senior Managing Director, Grand Total 7,870 4,567 1,400 13,837 its presence in the northern part of India. The collective employee base amongst all Commercial Companies, United Technologies Source: Report of the working group on power for Twelfth Plan (2012-17), Planning Commission its businesses in this region is 1,200 people which accounts for 20% of its Corporation India Pvt. Ltd. cumulative employee strength in India. Company Performance UTC has several businesses in the northern India such as UTC Climate, Controls & Security which includes Carrier and Fire, Security and Automation products and Otis. Carrier began its Indian operations from the northern state of Rajasthan (Jaipur) in 1930. Given the significance of the northern region, Carrier consolidated its factory operations from across India to its factory in Gurgaon, Haryana that was started in 1988. Carrier has also formed a venture with China's G.D. Media Holding and plans to invest INR500 crores by 2017. The company is setting up a new manufacturing facility at Bawal with a capacity of 1,000,000 units. Such ongoing investments testify the company's confidence in the region. Advantage north – taking UTC to new heights The advantages offered by the northern region presents a strong case in scaling UTC Climate, Controls & Security's business to new heights. This is because these advantages cover a broad spectrum of the market, ie. both the demand and the supply sides. In case of former, the vagaries of nature accompanied with rising income and a developed consumer market offers immense opportunities for the company. From the supply-side, factors such as conducive state government policies, availability of skilled labour due to the presence of a strong industrial belt around Delhi-NCR, Ludhiana and now Baddi areas, fairly sound logistics both in infrastructure and supply chain (strong vendor/supplier base due to presence of various industries and proximity to national highway) are some of the definite positives for the company. Beyond Business – giving back to society UTC is of the view that improved financial performance and corporate responsibility move in tandem. In order to support the same, it has several ongoing inclusive growth initiatives such as providing scholarships to engineering students from economically weaker sections of society through CII and FAEA Scholarships programme and imparting primary education to children in Gurgaon in partnership with United Way of Delhi.

59 CEA monthly report on power generation, CEA, August 2012 6012th plan power generation capacity addition likely to be at 90k MW, Business Standard, 25 May 2012

27 2012 28 Confederation of Indian Industry Further, installed power-generation capacity in the northern region was 56,089 MW vis-à-vis India's total United Technologies Corporation India – A bridge to the future 59 capacity of 207,006 MW, as of August 2012. Most of the states in the northern region have higher per The northern region occupies a special significance for United Technologies capita power consumption than the all-India average per capita power consumption of 779 KWh. These Corporation India Pvt. Ltd. that is headquartered in Delhi. United Technologies are Punjab (1,663 KWh), Haryana (1,491 KWh), Delhi (1,447 KWh), Himachal Pradesh (1,145 KWh), Corporation (UTC), a Hartford based conglomerate is a diversified company that Jammu & Kashmir (968 KWh), Uttarakand (930 KWh) and Rajasthan (811 KWh). provides a broad range of high-technology products and services to the global In the Twelfth Five Year Plan, the government plans to add 90,000 MW of new capacity, which would aerospace and building systems industries. UTC's commercial businesses are Otis require an investment of INR6,380 billion.60 As per the Twelfth Five Year Plan report of working group, Elevators & Escalators and the UTC Climate, Controls & Security, which is a leading northern states are expected to have a capacity addition of around 13,800 MW during 2012-2017. This is provider of air-conditioning, fire, security and automation products and solutions. likely to create new avenues of growth for power companies. The broad portfolio of products and services includes Carrier Air-Conditioning and Refrigeration, Toshiba Air-Conditioning, Edwards Fire Alarms, Novec & Argonite Table 20: North Region Twelfth Five Year Plan Capacity (MW) Gas Suppression, Lenel On-Guard, Chubb Alba Security Solutions, Carrier-Race State/ UT Thermal Hydro Nuclear Grand Total Automation Solutions, ALC Building Management System and Agnice Fire Haryana 660 - - 660 Protection. The aerospace businesses are Sikorsky aircraft and the UTC Propulsion “Today, while the Northern Himachal Pradesh - 2,762 - 2,762 & Aerospace Systems, which includes Pratt & Whitney and UTC Aerospace Region houses 20% of our Jammu & Kashmir - 780 - 780 Systems. UTC Aerospace Systems is among the world's largest suppliers of employee population and is home to 2 of our largest factories in Punjab 1,590 - - 1,590 advance aerospace products and services and its portfolio of products and services India, there is clearly a lot of potential to improve and further Rajasthan 1,700 - 1,400 3,100 include Hamilton Sundstrand and Goodrich. grow our presence in the region. We are fully committed to further Uttar Pradesh 3,920 - - 3,920 UTC businesses have a pan India presence, catering to more than 100 locations in investment and growth in the Uttarakhand - 1,025 - 1,025 region.” Mr Zubin Irani, 60 cities and having four manufacturing centres, and is focussed on strengthening Senior Managing Director, Grand Total 7,870 4,567 1,400 13,837 its presence in the northern part of India. The collective employee base amongst all Commercial Companies, United Technologies Source: Report of the working group on power for Twelfth Plan (2012-17), Planning Commission its businesses in this region is 1,200 people which accounts for 20% of its Corporation India Pvt. Ltd. cumulative employee strength in India. Company Performance UTC has several businesses in the northern India such as UTC Climate, Controls & Security which includes Carrier and Fire, Security and Automation products and Otis. Carrier began its Indian operations from the northern state of Rajasthan (Jaipur) in 1930. Given the significance of the northern region, Carrier consolidated its factory operations from across India to its factory in Gurgaon, Haryana that was started in 1988. Carrier has also formed a venture with China's G.D. Media Holding and plans to invest INR500 crores by 2017. The company is setting up a new manufacturing facility at Bawal with a capacity of 1,000,000 units. Such ongoing investments testify the company's confidence in the region. Advantage north – taking UTC to new heights The advantages offered by the northern region presents a strong case in scaling UTC Climate, Controls & Security's business to new heights. This is because these advantages cover a broad spectrum of the market, ie. both the demand and the supply sides. In case of former, the vagaries of nature accompanied with rising income and a developed consumer market offers immense opportunities for the company. From the supply-side, factors such as conducive state government policies, availability of skilled labour due to the presence of a strong industrial belt around Delhi-NCR, Ludhiana and now Baddi areas, fairly sound logistics both in infrastructure and supply chain (strong vendor/supplier base due to presence of various industries and proximity to national highway) are some of the definite positives for the company. Beyond Business – giving back to society UTC is of the view that improved financial performance and corporate responsibility move in tandem. In order to support the same, it has several ongoing inclusive growth initiatives such as providing scholarships to engineering students from economically weaker sections of society through CII and FAEA Scholarships programme and imparting primary education to children in Gurgaon in partnership with United Way of Delhi.

59 CEA monthly report on power generation, CEA, August 2012 6012th plan power generation capacity addition likely to be at 90k MW, Business Standard, 25 May 2012

27 2012 28 Confederation of Indian Industry 6. Pharmaceuticals Growth Drivers Various administrative, policy and business levers manufacturing units in the region. Together they North India is home to approximately 2,200 pharmaceutical manufacturing have given impetus to pharmaceutical account for approximately 500 manufacturing units, thus accounting for 21 percent of the country's total units. These include manufacturing and research in North India. units. The investment in the region is reported to large players such as Ranbaxy Laboratories, Mankind, Jubilant Life Sciences, Friendly government policies coupled with fiscal be worth an estimated INR30 billion in recent Panacea Biotech, Surya Pharmaceuticals, Nectar Lifesciences, Ind-Swift Group, incentives and quick project approvals have years. The development has generated Parabolic Drugs, Fresenius Kabi Oncology and Venus Remedies, as well as small contributed significantly to the growth of the approximately 20,000 jobs across the region.65 players such as IOL Chemicals & Pharmaceuticals, Morepen Laboratories and sector. Increasing awareness of healthcare Investment opportunities Jagsonpal Pharma. The players are engaged in formulation development among the Indian population is also an (approximately 77 percent) and bulk drug manufacturing (approximately 23 additional factor that supplements the growth Research and Development: North India- percent).61 of the pharma sector. based companies are also aggressively investing in research and development (R&D) to expand There are numerous instances that exhibit the The pharmaceutical segment in North India has grown rapidly in the last their product portfolios in critical areas such as co-operation of the government with respect to decade. From R&D oriented facilities to product portfolios, the sector has anti-infective and chronic care. A large portion pharmaceuticals. The Uttar Pradesh state cabinet of these investments is in the NCR region. In witnessed growth in all aspects of the value chain. Today, the increased focus approved a proposal for revival of the Uttar addition to homegrown companies, the on therapeutic areas of oncology, neuro, respiratory, dermatology and pain Pradesh Drugs and Pharmaceuticals Company northern region attracts significant management signifies the strategic shift of the north based pharmaceutical Limited (UPDPL) in a phased manner. The manufacturing investments from other regions. companies towards specialty and niche markets which potentially can provide objective of this move is to revive the industry 63 It has attracted one-third of total pharmaceutical Figure 9: Pharmaceutical manufacturing units in the northern region from its current state of disorganization. The project investments in the country in recent Chief Minister Akhilesh Yadav has also times.66 Uttarkhand, announced expansion of department of Uttar Pradesh, 11.6% emergency medicine and setting up of advanced The region is home to various science, medicine 19.8% opthalmic centre at Sanjay Gandhi Post based research institutes, such as Indian Council Graduate Institute of Medical Sciences. of Medical Research (ICMR) and National Haryana, 13.1% Institute of Pharmaceutical Education and The following table The Himachal Pradesh Government has also Research (NIPER). MSD India invested USD150 summarizes the identified the pharmaceutical industry as a million in the R&D centre at Jamia Millia Islamic presence of major 'thrust sector' because of its high growth University to focus on vaccines, novel domestic and potential and opportunities. 67 molecules. The partnership between Panacea foreign players in Himachal Pradesh and Uttarakhand have Delhi, 23.9% Himachal Biotec and Panjab University to develop New selected states of Pradesh, 16.6% expressed their interest in the sector while Chemical Entities for psychiatric disorders is also the northern region. committing to ease the real estate availability Jammu & indicative of the increasing co-operation Kashmir, 1.7% issue for pharma players by accepting to clear between private players in academic institutes to Rajasthan, 8.1% project proposals within a two month time 68 Punjab, 2.3% promote R&D in the pharma industry. Chandigarh, 2.9% frame. These states have also committed to providing access to inexpensive and adequate Clinical Research: Increased healthcare Source: Chapter 9, 2011 Annual Report by Department of Pharmaceuticals, Government of India power in addition to water and waste water accessibility, positive regulatory intervention and treatment effluent plants which are key facilities the improving infrastructure in North India, Table 21: Major players in pharmaceuticals in the northern region required for smooth functioning of pharma provides pharma companies with adequate 64 access to clinical subjects, data on efficacy, State/ UT Domestic Foreign plants. Access to real estate and ease of project safety of prospective drug and compositions Delhi Panacea Biotech Fresenius Kabi approvals have also proved as growth drivers to thus helping clinical research and formulation Haryana Mankind Pharma Daiichi Sankyo (Ranbaxy) the industry in North India. development. Thus, there are numerous factors Punjab Punjab Chemicals and Drugs Daiichi Sankyo (Ranbaxy) Fiscal incentives in the form of excise duty interplaying to help the northern region emerge Rajasthan Rajasthan Drugs & Pharmaceuticals Ltd. - exemption, the exemption of income tax for strongly as a preferred investment destination Chandigarh IND-SWIFT/Nectar LifeSciences - companies and capital investment subsidy for pharmaceuticals. Himachal Pradesh Dr. Reddy's, Panacea Biotech, Cipla Daiichi Sankyo (Ranbaxy), granted to new establishments have further Glaxo SmithKline helped the sector. These incentives have fuelled Immense opportunity arises in the region as MNCs are likely to be drawn to India for the Uttarakhand Jubilant Life Sciences, Akums Drugs & - the influx of investments. Excise free zones in Pharmaceuticals, Himalaya Drugs, Intas, Baan Labs, the North India incentivized SMEs and big purpose of contract research and Troika Pharmaceutical, IPCA Laboratories, SBL pharma companies to set up drug manufacturing. Industries Uttar Pradesh Unichem, Jubilant Organosys, Jindal Drugs -

Source: KPMG in India analysis 63 Cabinet gives nod to revival of state pharmaceutical unit – Times of India – 11 December 2011 64 BMI Extracts – September 2012 65“ North Indian pharma: Focusing on R&D and tie-ups to meet challenging conditions “ - Pharmabiz –27 August 2010 66“ Backbone of the industry”- Express Pharma – 13 March 2011 61 “2010-2011 Pharmaceutical Annual Report”, Government of India, Chapter 9 67MSD and Hilleman Labs to set up lab in Delhi – Pharma – Industry News – 1 January 2012 62 BMI news extracts – September 2012 68Panacea Biotech – Company website

29 2012 30 Confederation of Indian Industry 6. Pharmaceuticals Growth Drivers Various administrative, policy and business levers manufacturing units in the region. Together they North India is home to approximately 2,200 pharmaceutical manufacturing have given impetus to pharmaceutical account for approximately 500 manufacturing units, thus accounting for 21 percent of the country's total units. These include manufacturing and research in North India. units. The investment in the region is reported to large players such as Ranbaxy Laboratories, Mankind, Jubilant Life Sciences, Friendly government policies coupled with fiscal be worth an estimated INR30 billion in recent Panacea Biotech, Surya Pharmaceuticals, Nectar Lifesciences, Ind-Swift Group, incentives and quick project approvals have years. The development has generated Parabolic Drugs, Fresenius Kabi Oncology and Venus Remedies, as well as small contributed significantly to the growth of the approximately 20,000 jobs across the region.65 players such as IOL Chemicals & Pharmaceuticals, Morepen Laboratories and sector. Increasing awareness of healthcare Investment opportunities Jagsonpal Pharma. The players are engaged in formulation development among the Indian population is also an (approximately 77 percent) and bulk drug manufacturing (approximately 23 additional factor that supplements the growth Research and Development: North India- percent).61 of the pharma sector. based companies are also aggressively investing in research and development (R&D) to expand There are numerous instances that exhibit the The pharmaceutical segment in North India has grown rapidly in the last their product portfolios in critical areas such as co-operation of the government with respect to decade. From R&D oriented facilities to product portfolios, the sector has anti-infective and chronic care. A large portion pharmaceuticals. The Uttar Pradesh state cabinet of these investments is in the NCR region. In witnessed growth in all aspects of the value chain. Today, the increased focus approved a proposal for revival of the Uttar addition to homegrown companies, the on therapeutic areas of oncology, neuro, respiratory, dermatology and pain Pradesh Drugs and Pharmaceuticals Company northern region attracts significant management signifies the strategic shift of the north based pharmaceutical Limited (UPDPL) in a phased manner. The manufacturing investments from other regions. companies towards specialty and niche markets which potentially can provide objective of this move is to revive the industry 63 It has attracted one-third of total pharmaceutical Figure 9: Pharmaceutical manufacturing units in the northern region from its current state of disorganization. The project investments in the country in recent Chief Minister Akhilesh Yadav has also times.66 Uttarkhand, announced expansion of department of Uttar Pradesh, 11.6% emergency medicine and setting up of advanced The region is home to various science, medicine 19.8% opthalmic centre at Sanjay Gandhi Post based research institutes, such as Indian Council Graduate Institute of Medical Sciences. of Medical Research (ICMR) and National Haryana, 13.1% Institute of Pharmaceutical Education and The following table The Himachal Pradesh Government has also Research (NIPER). MSD India invested USD150 summarizes the identified the pharmaceutical industry as a million in the R&D centre at Jamia Millia Islamic presence of major 'thrust sector' because of its high growth University to focus on vaccines, novel domestic and potential and opportunities. 67 molecules. The partnership between Panacea foreign players in Himachal Pradesh and Uttarakhand have Delhi, 23.9% Himachal Biotec and Panjab University to develop New selected states of Pradesh, 16.6% expressed their interest in the sector while Chemical Entities for psychiatric disorders is also the northern region. committing to ease the real estate availability Jammu & indicative of the increasing co-operation Kashmir, 1.7% issue for pharma players by accepting to clear between private players in academic institutes to Rajasthan, 8.1% project proposals within a two month time 68 Punjab, 2.3% promote R&D in the pharma industry. Chandigarh, 2.9% frame. These states have also committed to providing access to inexpensive and adequate Clinical Research: Increased healthcare Source: Chapter 9, 2011 Annual Report by Department of Pharmaceuticals, Government of India power in addition to water and waste water accessibility, positive regulatory intervention and treatment effluent plants which are key facilities the improving infrastructure in North India, Table 21: Major players in pharmaceuticals in the northern region required for smooth functioning of pharma provides pharma companies with adequate 64 access to clinical subjects, data on efficacy, State/ UT Domestic Foreign plants. Access to real estate and ease of project safety of prospective drug and compositions Delhi Panacea Biotech Fresenius Kabi approvals have also proved as growth drivers to thus helping clinical research and formulation Haryana Mankind Pharma Daiichi Sankyo (Ranbaxy) the industry in North India. development. Thus, there are numerous factors Punjab Punjab Chemicals and Drugs Daiichi Sankyo (Ranbaxy) Fiscal incentives in the form of excise duty interplaying to help the northern region emerge Rajasthan Rajasthan Drugs & Pharmaceuticals Ltd. - exemption, the exemption of income tax for strongly as a preferred investment destination Chandigarh IND-SWIFT/Nectar LifeSciences - companies and capital investment subsidy for pharmaceuticals. Himachal Pradesh Dr. Reddy's, Panacea Biotech, Cipla Daiichi Sankyo (Ranbaxy), granted to new establishments have further Glaxo SmithKline helped the sector. These incentives have fuelled Immense opportunity arises in the region as MNCs are likely to be drawn to India for the Uttarakhand Jubilant Life Sciences, Akums Drugs & - the influx of investments. Excise free zones in Pharmaceuticals, Himalaya Drugs, Intas, Baan Labs, the North India incentivized SMEs and big purpose of contract research and Troika Pharmaceutical, IPCA Laboratories, SBL pharma companies to set up drug manufacturing. Industries Uttar Pradesh Unichem, Jubilant Organosys, Jindal Drugs -

29 2012 30 Confederation of Indian Industry Ranbaxy – adding northern wings to its growth 7. Renewable energy Ranbaxy started as a distributor for a Japanese company Shionogi in Delhi in Well-poised to establish itself as a leader in hydro, biomass and cogeneration bagasse. 1937. It was incorporated in 1961 and went public in 1973. For the next 25 years, renewable energy generation, the northern Around 30 percent of India's total estimated the company exhibited consistent growth, expanding its presence in different region is expected to play an important role in renewable energy potential lies within the geographies both in India and outside while enhancing its product portfolio. The India's energy security and sustainable growth. It northern region. The following table summarizes company's growth story entered into a new phase in 2008 when Japan-based is bestowed with significant reserves of the presence of major domestic and foreign Daiichi Sankyo entered into alliance with majority stake-holding in it. Ranbaxy renewable energy such as wind, solar, small players in various states of the northern region. recorded global sales of USD 2.1 billion in 2011 with a balanced mix of revenues from emerging markets (47 percent) and developed markets (46 percent). At Table 22: Major players in renewable energy in the northern region present, the company is present in 23 of the top 25 pharmaceutical markets of State/ UT Domestic Foreign the world. It has a direct footprint in 43 countries and serves customers in over Delhi Tata Power Solar, Jindal Group - 125 countries, leveraging its world-class manufacturing facilities spread across 8 Haryana Haryana Biomass Power Ltd., Gammon, Bermaco Energy - “North India has been Ranbaxy's Systems countries. base since its inception. Our state-of-the-art facilities such as Himachal Pradesh NHPC, Greenko, NTPC, Jaiprakash Hydro Panax Geothermal Strong presence in the North R&D centre based in Gurgaon, manufacturing facilities located at Jammu & Kashmir NHPC, GVK Power - The company manages its global operations through its corporate head office Mohali, Paonta Sahib, Baddi, Punjab A2Z, Bermaco Energy Systems, Orient Green Power, Azure - Batamandi and Toansa are Power located in Gurgaon, Haryana. Its world class multi-disciplinary R&D center is also testimony to the investment located in Gurgaon, Haryana. Ranbaxy set up its API `mother plant' at Mohali in friendly ecosystem provided by this part of the country” Rajasthan Moser Baer Solar Ltd., A2Z Powercon, Tata Power Solar, CLP Holdings, First Solar the early 1970s followed by the flagship API manufacturing plant at Toansa in Mr Arun Sawhney, Transtech Green Power P Ltd, Suzlon CEO & MD, Punjab. As a part of its aggressive expansion plan, Ranbaxy set up dosage form Ranbaxy Laboratories Limited Uttar Pradesh Tata Power Solar,A2Z Powercon, EMC Ltd., Indosolar, Moser - manufacturing sites at Mohali-the first pharma SEZ in the north India, Paonta Baer Solar Ltd. Sahib, Batamandi and Baddi in Himachal Pradesh. Uttarakhand NHPC, Tata Power Solar, NTPC, L&T Power - North India – Advantages offered Chandigarh Green Planet Energy Pvt Ltd - Ranbaxy has been able to successfully sustain its operations in the North owing to a variety of factors. The Source: KPMG in India analysis company has benefited immensely from various fiscal and policy initiatives in the region. For example, the Figure 10: Estimated renewable energy potential (in MW) Haryana Government offers numerous incentives to foster industrial growth under its Industrial and Investment Policy, 2011. The Land Allotment Policy 2008 in Punjab and the National Manufacturing Policy are other policies that incentivize entrepreneurs by providing ease in the availability and cost of real estate. Biomass power Further, the NCR Board, under the Ministry of Urban Development, Government of India, decides on common Small -hydro 7,370 (27.7%) development of Delhi and significant portions of adjoining cities in neighboring states (Haryana and Uttar power

Pradesh) falling in the NCR, thereby, facilitating seamless trade and commerce for Ranbaxy and other Rest of India 6,284 companies as well. 63,127 North India (23.6%) (70.3%) 26,633 North India is the base to a number of engineering and polytechnic colleges which in turn generate a vast pool (29.7%) of skilled labour. Further, the political stability in the region (single party state governments) has also Wind power encouraged a progressive and friendly business environment. Operating out of north also provides for access 10,634 to decision making bodies at the central level directly keeping the company well connected to the regulatory (39.9%) Cogeneration authorities. bagasse Waste -to -energy 1,900 (7.1%) 445 (1.7%) Giving back to the community

Ranbaxy began working towards the “Health for All” in 1978 by setting up the first well equipped mobile Note: The graphic does not include Solar and >25 MW hydro power potential healthcare van in certain underserved areas of Punjab. As the program grew, the Ranbaxy Community Source: Energy Statistics 2012, MoSPI, March 2012 Healthcare Society (RCHS), an independent body, was created. RCHS is devoted to provide healthcare to the underprivileged sections of the society. Today, 18 well equipped mobile healthcare vans and a fully equipped family welfare centre, run by Ranbaxy, benefits over 650,000 people, in identified areas in the States of Punjab, Haryana, Himachal Pradesh, Madhya Pradesh and Delhi. In 2010, one more major program was launched in a Public Private Partnership between Government of Punjab and Ranbaxy for early detection and prevention of cancers. With 10 well equipped mobile health care vans and a staff of 40 people, this program covers a total population of 450,000 in around 180 villages in Punjab.

31 2012 32 Confederation of Indian Industry Ranbaxy – adding northern wings to its growth 7. Renewable energy Ranbaxy started as a distributor for a Japanese company Shionogi in Delhi in Well-poised to establish itself as a leader in hydro, biomass and cogeneration bagasse. 1937. It was incorporated in 1961 and went public in 1973. For the next 25 years, renewable energy generation, the northern Around 30 percent of India's total estimated the company exhibited consistent growth, expanding its presence in different region is expected to play an important role in renewable energy potential lies within the geographies both in India and outside while enhancing its product portfolio. The India's energy security and sustainable growth. It northern region. The following table summarizes company's growth story entered into a new phase in 2008 when Japan-based is bestowed with significant reserves of the presence of major domestic and foreign Daiichi Sankyo entered into alliance with majority stake-holding in it. Ranbaxy renewable energy such as wind, solar, small players in various states of the northern region. recorded global sales of USD 2.1 billion in 2011 with a balanced mix of revenues from emerging markets (47 percent) and developed markets (46 percent). At Table 22: Major players in renewable energy in the northern region present, the company is present in 23 of the top 25 pharmaceutical markets of State/ UT Domestic Foreign the world. It has a direct footprint in 43 countries and serves customers in over Delhi Tata Power Solar, Jindal Group - 125 countries, leveraging its world-class manufacturing facilities spread across 8 Haryana Haryana Biomass Power Ltd., Gammon, Bermaco Energy - “North India has been Ranbaxy's Systems countries. base since its inception. Our state-of-the-art facilities such as Himachal Pradesh NHPC, Greenko, NTPC, Jaiprakash Hydro Panax Geothermal Strong presence in the North R&D centre based in Gurgaon, manufacturing facilities located at Jammu & Kashmir NHPC, GVK Power - The company manages its global operations through its corporate head office Mohali, Paonta Sahib, Baddi, Punjab A2Z, Bermaco Energy Systems, Orient Green Power, Azure - Batamandi and Toansa are Power located in Gurgaon, Haryana. Its world class multi-disciplinary R&D center is also testimony to the investment located in Gurgaon, Haryana. Ranbaxy set up its API `mother plant' at Mohali in friendly ecosystem provided by this part of the country” Rajasthan Moser Baer Solar Ltd., A2Z Powercon, Tata Power Solar, CLP Holdings, First Solar the early 1970s followed by the flagship API manufacturing plant at Toansa in Mr Arun Sawhney, Transtech Green Power P Ltd, Suzlon CEO & MD, Punjab. As a part of its aggressive expansion plan, Ranbaxy set up dosage form Ranbaxy Laboratories Limited Uttar Pradesh Tata Power Solar,A2Z Powercon, EMC Ltd., Indosolar, Moser - manufacturing sites at Mohali-the first pharma SEZ in the north India, Paonta Baer Solar Ltd. Sahib, Batamandi and Baddi in Himachal Pradesh. Uttarakhand NHPC, Tata Power Solar, NTPC, L&T Power - North India – Advantages offered Chandigarh Green Planet Energy Pvt Ltd - Ranbaxy has been able to successfully sustain its operations in the North owing to a variety of factors. The Source: KPMG in India analysis company has benefited immensely from various fiscal and policy initiatives in the region. For example, the Figure 10: Estimated renewable energy potential (in MW) Haryana Government offers numerous incentives to foster industrial growth under its Industrial and Investment Policy, 2011. The Land Allotment Policy 2008 in Punjab and the National Manufacturing Policy are other policies that incentivize entrepreneurs by providing ease in the availability and cost of real estate. Biomass power Further, the NCR Board, under the Ministry of Urban Development, Government of India, decides on common Small -hydro 7,370 (27.7%) development of Delhi and significant portions of adjoining cities in neighboring states (Haryana and Uttar power

31 2012 32 Confederation of Indian Industry Table 23: Renewable energy potential in the northern region (in MW) husk, de-oiled cakes, jute wastes, groundnut of particular importance in this context. The

State Wind Small Biomass Cogeneration Waste to State Percentage shells and sawdust. region is gifted with a whole range of tourist power hydro power bagasse energy Total share To tap the vast available potential of renewable attractive destinations ranging from huge power energy in the northern region, most of its states mountains to vast plains to deserts and includes Delhi 0 0 0 0 131 131 0.1% a number of places of great religious value. In Haryana 0 110 1,333 350 24 1,817 2.0% have renewable energy policies in place. Some 2011, the region accounted for nearly one-third Himachal Pradesh 20 2,268 142 0 2 2,432 2.7% of the policies adopted include fiscal incentives, of all tourists visiting India.74 The northern region Jammu & Kashmir 5,311 1,418 43 0 0 6,772 7.5% accelerated depreciation, tax holidays, feed-in is home to Taj Mahal, India's most iconic Punjab 0 393 3,172 300 45 3,910 4.4% tariffs, capital subsides or grants and carbon- monument globally. Also, northern region has Rajasthan 5,005 57 1,039 0 62 6,163 6.9% trading certificates. These policies are focused to large number of historical monuments, Uttar Pradesh 137 461 1,617 1,250 176 3,641 4.1% promote investment in the sector by creating a pilgrimages across religion such as Golden Uttarakhand 161 1,577 24 0 5 1,767 2.0% favourable environment and providing adequate Temple in Amritsar, Badrinath, Allahabad, Northern region 10,634 6,284 7,370 1,900 445 26,633 29.7% returns to developers. Haridwar, Mathura, Bahai Temple etc. and India Total 49,130 15,385 17,538 5,000 2,707 89,760 100.0% In the Twelfth Five Year Plan, the Ministry of natural forests, hills, Himalayas and deserts and Northern region 21.6% 40.8% 42.0% 38.0% 16.4% - - New and Renewable Energy (MNRE) has percentage share valleys in the same region. proposed a target of 29,800 MW comprising The total number of tourists travelling to the Note: The table does not include Solar and >25 MW hydro power potential 15,000 MW wind power, 2,100 MW small Source: Energy Statistics 2012, MoSPI, March 2012 hydro-power, 10,000 MW solar power and northern region grew at about 9.8 percent 2,700 MW bio-power for capacity addition of annually between 2007 and 2011 to reach In terms of hydro power, the northern region of around 5,000 MW of wind power, of which 75 grid-interactive renewable power.73 Northern 281.3 million in 2011. However, while the has potential of around 53,000 MW — 2,075 MW has already been installed. To tap the region is expected to play a vital role in growth in tourist arrivals has been strong, it has constituting around 36 percent of the country's rest of this potential, the Government of achieving this target. been below the average growth of 12.7 percent total hydro power potential. However, of this, Rajasthan has launched a new wind power annually for the country during the same period. 69 only 40 percent has been realized so far. policy that targets capacity addition of 8. Tourism Moreover, the share of foreign tourist arrivals to Himachal Pradesh, Uttarakhand and Jammu & approximately 3,000 MW in the next three to India's vast geography and cultural diversity the northern region has been around 32.3 72 Kashmir offer oppotunities for harnessing hydro four years. Meanwhile, Jammu & Kashmir has make it an attractive tourism destination. The percent as of December 2010. This indicates power potential, thanks to their abundance of wind potential of around 5,300 MW, or northern region, with its distinctive character, significant scope to improve tourism prospects in swift and mountainous rivers. approximately 11 percent of India's total wind culture, rich history and versatile attractions, is the region. On the solar power front, Rajasthan is endowed potential. To tap this, the Jammu & Kashmir with abundant solar radiation and wasteland, so Government is encouraging investment in the Table 24: Tourist arrivals in the northern region (both domestic and foreign) in million sector through a favourable environment and it is favorably placed to become the largest State/UT 2007 2008 2009 2010 2011 (P) CAGR (%) policies, including exemption of royalty for the provider of solar power in the country. Delhi 4.4 4.5 10.8 15.5 17.6 41.3% first five years and no state taxes on power Rajasthan's Solar Energy Policy 2011 is aimed at Haryana 6.3 6.1 6.5 7.0 6.1 -0.8% developing around 10,000-12,000 MW of solar equipment. Uttar Pradesh 117.8 126.5 136.4 146.4 157.3 7.5% power capacity in the state in the next 10–12 For biomass, the northern region has the Rajasthan 27.3 29.8 26.6 26.8 28.5 1.1% years.70 Further, of the 1,100 MW solar capacity potential to generate nearly 42.0 percent (7,370 Himachal Pradesh 8.8 9.7 11.4 13.3 15.1 14.4% planned under the first phase of the Jawaharlal MW) of the country's biomass power and 38.0 Nehru National Solar Mission (JNNSM), 873 MW percent (1,900 MW) of cogeneration bagasse. Uttarakhand 19.9 20.6 22.0 30.3 26.1 7.0% is allocated to Rajasthan. The Government of Uttar Pradesh has the largest installed capacity Chandigarh 1.0 0.9 1.0 0.9 0.9 -0.2% Rajasthan has also proposed the establishment of around 600 MW, representing 22.2 percent Jammu & Kashmir 8.0 7.7 9.3 10.0 13.1 13.3% of four solar parks of around 1,000 MW with a of the country's biomass-based power Punjab 0.4 0.5 5.5 10.7 16.6 158.0% focus on equipment manufacturing and R&D.71 generation capacity. Further, biomass energy Northern region 193.8 206.4 229.6 261.1 281.3 9.8% Thus, the pipeline of new generation projects in and bagasse-based cogeneration in the sugar India 539.8 577.1 683.2 758.1 870.4 12.7% the state indicates a significant business industry are widely used in Punjab, Haryana and Note: Figures for 2011 are provisional opportunity for solar component manufacturers. Uttar Pradesh. These states are primarily agrarian Source: India Tourism Statistics, 2008 to 2011, Ministry of Tourism, KPMG in India analysis Rajasthan and Jammu & Kashmir also have states with sufficient resources to provide feedstock to biomass industry. Biomass material The region has also evinced a strong interest from many of the domestic and foreign players. Some of the strong potential for wind energy generation. For key players in the region are detailed in the table on the next page. example, Rajasthan has an estimated potential used for power generation include bagasse, rice husk, straw, cotton stalk, coconut shells, soya

73 “Capacity Addition of Renewable Energy”, PIB, Government of India, 21 May 2012 74 69“Status of Hydro Electric Potential Development”, CEA, August 2012 India Tourism Statistics, 2008 to 2011, Ministry of Tourism website, 70Rajasthan Solar Energy Policy, 2011, Rajasthan Renewable Energy Corporation Limited, April 2011 www.tourism.gov.in/TourismDivision/AboutDivision.aspx?Name=Market Research and Statistics, accessed 28 September 2012KPMG in India analysis 75 71“Rajasthan to have four solar parks”, Times of India, January 2012 India Tourism Statistics, 2008 to 2011, Ministry of Tourism website, 72“Rajasthan adopts new wind power policy,” The Hindu, July 2012 www.tourism.gov.in/TourismDivision/AboutDivision.aspx?Name=Market Research and Statistics, accessed 28 September 2012KPMG in India analysis

33 2012 34 Confederation of Indian Industry Table 23: Renewable energy potential in the northern region (in MW) husk, de-oiled cakes, jute wastes, groundnut of particular importance in this context. The

33 2012 34 Confederation of Indian Industry Table 25: Major players in tourism sector in the northern region* Table 26: Transport infrastructure in the northern region

State/ UT Players State/UT Number of Airports Railway network (in km) National Highway (in km) Delhi Taj Hotels & Resorts, ITC, Oberoi, Raj Travels, Indian Hotels Company, Cox and Rajasthan 6 5,683 7,130 Kings, Kouni Travel, Marriot Uttarakhand 2 345 2,042 Haryana Vatika Hospitality Uttar Pradesh 6 8,890 7,818 Himachal Pradesh Mahindra Holidays, G.G. Hotels & Resorts Punjab 4* 2,098 1,557 Jammu & Kashmir Bharat Hotels Limited Jammu & Kashmir 3 256 1,245 Punjab Radisson, Neemrana Hotels Himachal Pradesh 3 296 1,506 Rajasthan EIH Associated Hotels, Neesa Leisure, National Hotels Haryana 1* 1,553 1,633 Uttar Pradesh EIH Associated Hotels, Jaypee Hotels Delhi 1 183 80 Uttarakhand IHHR Hospitality, Jaypee Hotels, Radisson, Snow Leopard Adventure Chandigarh 1* 16 24 Chandigarh Taj Hotels & Resorts, Marriot

*Besides these, Thomas Cook, Yatra.com and MakeMyTrip are online players with significant operations in the northern region. Investment opportunities period. In the Twelfth Five Year Plan, the Indian Government has proposed an investment of Source: Ministry of Tourism website for identified circuit for various states (Phase I), http://www.tourism.gov.in/TourismDivision Most states in the northern region are focused about INR513.6 billion, of which nearly 70 /AboutContent.aspx?Name=Market Research and Statistics&CID=120, accessed October 12, 2012, IL&FS Infrastructure, on promoting tourist circuits. The policy Hotel and Restaurant Associations of Northern India website http://www.hrani.net.in/hranisearch/hotelsrch.asp, percent is expected to come from the private environment has also become favourable with 77 sector. Focus on infrastructure development accessed October 22, 2012 and KPMG in India analysis the Union Government launching the National and ease of connectivity is bound to encourage Tourism Policy in 2002. The policy is aimed at Growth drivers foreign tourists. Pushkar and Bikaner are also tourist inflow to the region. speedy implementation of tourism projects, popular among foreign tourists. Recently, Jantar Among the states in the northern region, Punjab development of tourism circuits, special capacity The growing importance of tourism in the and Delhi recorded the highest growth in tourist Mantar at Jaipur has been included in the list of buildings in the hospitality sector and new region is also expected to provide an impetus for inflow, growing at 158 percent and 41.3 World Heritage Sites of UNESCO. Besides, the marketing strategies. Further, the government the hospitality sector. As of 31 December 2010, percent, respectively, between 2007 and 2011. state government has been keen on promoting has set up a Hospitality Development and the region had 1,145 hotels providing about Promotion Board which will monitor and 39,307 hotel rooms for visitors. This was about This can be primarily attributed to investments in tourism in the state for which it has formulated Rajasthan Tourism Unit Policy in 2007 and Eco facilitate hotel project clearances/approvals. 46 percent of the total number of hotels in the transport infrastructure, which has improved country and one-third of total number of hotel Tourism Policy in 2010. The outlay for tourism in the northern region 78 connectivity and increased domestic tourist rooms available in the country. Industry has increased at an annual rate of 7.4 percent arrivals. The Commonwealth Games of 2010 in Similarly, Uttarakhand is primarily known for its 76 estimates suggests that the northern region between FY08 and FY12. Similarly, the Delhi also contributed to growing tourism in the hill stations, as well as pilgrim and adventure would require approximately 60,000 additional approved outlay for the development of hotel rooms by 2021 entailing an investment of state. Delhi being the national capital is also an sites. The state is famous for its Char Dham transport infrastructure by respective state close to USD 8.5 billion in the northern region important point of contact for tourists who are Yatra which includes trips to Gangotri, governments in the northern region increased at representing a huge investment opportunity for in transit to other states/locations in India. Yamunotri, Kedarnath and Badrinath. Other an annual rate of 6.5 percent during the same 79 private sector. Jammu & Kashmir is famous for its stunning religious and pilgrimage spots include Haridwar, mountainous landscapes and the world-famous Devprayag, Rudraprayag, Hemkund Sahib etc. Figure 11: Tourism outlay as a percentage of total annual plan outlay Kashmir Valley. It offers a wide range of tourist Similarly, Himachal Pradesh, which is popularly (2007–08 to 2011–12) known as 'Devbhumi' meaning the 'Land of the attractions, from skiing and mountaineering to a 2.0% lazy cruise on one of Kashmir's riverboats. Gods,' is a beautiful hill State nestled in the northwest region of the western Himalayas. 1.4% Among the large states, Uttar Pradesh has a Punjab too boasts of Golden Temple at Amritsar strong presence due to its many religious sites, while Uttar Pradesh is home to Varanasi and Braj heritage monuments, historical importance and 0.5% region which are centers of attraction for Hindu 0.3% wildlife. The presence of Taj Mahal, a United 0.2% 0.2% 0.1% 0.1% 0.1%

people.

Nations Educational, Scientific and Cultural h b r & hi na a The northern region is also well connected by an hal than desh hand igar

Organization (UNESCO) World Heritage site, Del rya k shmi adesh Punj

inter-linkage of various road networks including Pra Ha ammu Pr ara Ka attracts domestic as well as international Himac J Rajas ar Chand

national, state and major district roads. The Utt

people.

Nations Educational, Scientific and Cultural h b r & hi na a The northern region is also well connected by an hal than desh hand igar

Organization (UNESCO) World Heritage site, Del rya k shmi adesh Punj

inter-linkage of various road networks including Pra Ha ammu Pr ara Ka attracts domestic as well as international Himac J Rajas ar Chand national, state and major district roads. The Utt

travelers. Rajasthan, too, offers majestic forts, Utt palaces, and heritage hotels as well as vibrant region also boasts of excellent connectivity Source: Planning Commission state Plan Outlays, 2007–08 to 2011–12 cultural fairs and festivals. Moreover, the only through railway network and India's busiest Besides, the northern region is host to a number of travel operators promoting packaged tours and desert in India is situated in this state, which has airport — Indira Gandhi International Airport — services within the region. Emergence of such operators coupled with the increasing infrastructure further promoted tourism in the area. In is also located in the region. The table below summarizes key aspects of transportation connectivity and diversity of tourist attractions is bound to encourage tourism in the Rajasthan, Jaipur, Udaipur, Jaisalmer, Jodhpur & northern region. Ranakpur are the most visited places by the infrastructure across northern states. * Aiport at Chandigarh is being shared by Chandigarh, Punjab and Haryana Source: Ministry of Tourism website for identified circuit for various states (Phase I), http://www.tourism.gov.in/TourismDivision/ 76Planning Commission state Plan Outlays website, http://planningcommission.nic.in/plans/stateplan/index.php?state=b_outbody.htm, accessed AboutContent.aspx?Name=Market Research and Statistics&CID=120, accessed October 12, 2012, IL&FS Infrastructure, Ibef.org and September 28, 2012 77 Ministry of Road Transport and Highways website, http://morth.nic.in/index2.asp?slid=32&sublinkid=12&lang=1, State wise length Report of the Working Group on Tourism for 12th Five Year Plan (2012-17), Planning Commission website, of National Highways in India, accessed October 12, 2012 http://planningcommission.gov.in/aboutus/committee/index.php?about=12strindx.htm#tou, accessed September 28, 2012 78India Tourism Statistics 2010, Ministry of Tourism 79HVS White Paper on Hotel Room Supply, Capital Investment and Manpower Requirement by 2012, March 2012 and KPMG in India analysis. 35 2012 36 Confederation of Indian Industry IV. POLICY INITIATIVES: CONTINUOUS ENHANCEMENT Government policies play a major role in Punjab is making a considerable progress to under Phase II has been recommended for the the region is estimated at INR1,500 million. promoting investments in any region. Various facilitate the industrialization which is estimated Twelfth Five Year Plan period. state governments in the northern region have to require INR1 trillion of investments. An oil In a bid to drive the growth of the leather been prompt to provide a favourable investment refinery with an estimated investment of USD4 In another step to make handloom an attractive industry and the need for accurate design environment for private sector. In the recent billion (jointly promoted by ArcelorMittal and sector and garner investment, the Ministry of development to meet international standards, past, there have been a number of HPCL) at Bathinda is about to become Urban Development & Poverty Alleviation has the Planning Commission has proposed the developments and policy initiatives setting the operational. The Right to Service Act was allotted 1.8 acres of land in Delhi to the Ministry establishment of two national design studios — tone of high growth across the region. Various implemented to bring in transparency. The state of Textiles for the construction of a topnotch one of them is in North India (Rohtak, Haryana). state governments have undertaken a whole is also mulling over to have a dedicated handloom marketing complex. This facility will This studio will have supporting infrastructure gamut of administrative reforms to facilitate Technical Education & Industrial Training policy provide infrastructural support to handloom and facilities for various R&D activities in the quick decision-making, cut down red tape, to reduce the gap between Industry and agencies that will facilitate handloom agencies design and forecasting space. to increase their sales and offer quality provide single window clearances and deemed Academia and train the youth as per skills In view of the lack of power supply and the 84 handloom products. The complex is also approvals and encourage private sector required by the Industry. shortage of traditional raw material, a tentative expected to serve as a forum for the promotion investment. target for grid interactive renewable power Some of the bigger states have a well-laid out of handloom products both in the domestic and addition of 18,500 MW (wind-11,000 MW, There have been various policy initiatives taken industrial policy in place. The Uttar Pradesh international markets. in the agriculture and food processing sector Government has taken several measures for the solar-3,800 MW, small hydro-1,600 MW and which is the backbone of the region. Punjab development of industrial sector with an For the integrated growth of the pharmaceutical biomass-2,100 MW) has been estimated during industry and for infrastructural development the Government is planning to amend the investor-friendly policy framework. Some of the the Twelfth Five Year Plan. While the estimates Planning Commission has acknowledged the Agriculture Produce Marketing Committee thrust areas for the state include Agribusiness, of these additions by state are yet to be importance of a cluster-based approach as an (APMC) Act, which would go a long way in IT/ITeS, Biotech, food processing, handicrafts assessed, it is estimated that wind and solar effective and sustainable strategy for the strengthening the state's agricultural economy. and tourism. Another large state in the region, power will be concentrated in Rajasthan, while competitive enhancement of micro, small and The Government also enacted 'Contract Farming Rajasthan announced its industrial policy in 2010 small hydro would be available in Himachal medium enterprises (MSMEs). Accordingly, the Act' to ensure better remunerative prices to the to catalyze investments, accelerate inclusive Pradesh and Uttarakhand. beleaguered peasantry.80 Besides Himachal economic growth and create large scale Planning Commission plans to set up 10 clusters Pradesh, Uttarakhand and Rajasthan have also employment opportunities in the state. The by the end of the Twelfth Five Year Plan to For Rajasthan, the capacity addition of 1,500 modified the APMC Act for direct marketing, policy aimed at developing high quality provide infrastructure gaps for increased MW of wind energy and 1,300 MW of solar contract farming and markets in infrastructure and enhancing skill levels and production, including taking care of the energy have been planned. An investment of private/cooperative sectors. Other three states, employability by setting up training institutes in environment, power and labs testing. Of these INR23.5 billion in transmission infrastructure is Punjab, Delhi and Haryana, have undertaken PPP.85 Chandigarh is also in the process of 10 proposed clusters, three will be set up in the proposed for the evacuation of wind and solar partial reforms in the APMC Act.81 preparing an industrial policy to promote the northern region— Baddi (Himachal Pradesh), power. For Himachal Pradesh, the capacity expansion of micro, small and medium-scale Haridwar (Uttarakhand) and Gurgaon (Haryana). addition of 560 MW through small hydro Various states in the northern region have made enterprises along with a major emphasis on It is estimated that each cluster will require projects has been planned, with an investment significant progress in improving the availability development of the IT sector. investments of about INR500 million. of INR4.1 billion in transmission infrastructure. of land for various economic activities. While Accordingly, the total budgetary requirement for Haryana has fully computerized the land records, Further, upcoming Central Government policy other states such as Punjab, Himachal Pradesh, documents such as the Twelfth Five Year Plan 2. National Capital Region policy87 Rajasthan, Uttar Pradesh and Uttarakhand have and the NCR policy are projected to have made significant progress on that front.82 significant positive announcements for the The NCR Planning Board has drafted a twenty integrated regional drainage plan would also Rajasthan and Punjab have increased the lease region in future. The following section outlines year growth and development plan for NCR require significant investment in future. Huge period and ensured the owner's right on his some of the major initiatives planned for the 83 region. The plan aims at facilitating high tech investments into telecommunications, social land. region and their positive impact on the region's future development. services sector in Delhi to help it emerge as a infrastructure, tourism and heritage are also global city in the world. The significant bound to happen considering the proposals 86 1. Twelfth Five Year Plan infrastructure improvement has also been made under NCR 2021 Plan. Considering schemes by industry and plans power backlog in Uttar Pradesh where a large proposed for the development of expressways To conclude, for the northern region, future proposed in the approach paper of the Twelfth number of habitations remain uncovered in and railroads. The NCR plan also promotes the Five Year Plan, there are likely to be many schemes devised under the Eleventh Five Year policies have shown increased focus on positive announcements to give further impetus Plan and significant population has no power recycling and reuse of waste water for non investment in pharmaceuticals, electricity, to the northern region. Special emphasis is likely connectivity. drinking purposes. The creation of such telecommunication, roads and bridges, airports, to be given to areas with poor connectivity, and infrastructure would further demand high In Jammu & Kashmir's handloom industry, water supply and sanitation. These policy especially in a large number of districts in Uttar where Phase I of the project to create weaving investments. Better water demand initiatives are likely to strengthen the investment Pradesh, which have experienced much less facilities was completed during the Eleventh management, improvement in the supply of development than the state. The Twelfth Five environment and would create long term Plan, the completion of pre- and post- activities Year Plan also plan to focus on the significant quality of water and implementation of growth prospect in the northern region.

80 “Punjab gives nod for enacting 'Contract Farming Act and Amendments to APMC Act,” The Economic Times website, http://articles.economictimes. indiatimes.com/2012-10-01/news/34198147_1_maize-growers-maize-cultivation-paddy-cultivation, accessed 11 October 2012 81“Status of Market Reforms in Agriculture (APMC Act amendments),” http://agmarknet.nic.in/amrscheme/apmcstatus07.htm, accessed 12 October 2012 82“CLR Physical Progress,” Department of Land Resources website, http://dolr.nic.in/dolr/CLR_Physical_Progress.asp, accessed 11 October 2012 83 “Follow Punjab & Rajasthan on farm land reforms: CII,” The Indian Express website, http://www.indianexpress.com/news/follow-punjab---rajasthan-on-farm-land-reforms-cii/852562/0, accessed 11 October 2012 84“CII hosts deliberations on Punjab's upcoming Technical Education & Industrial Training policy,” CII website, http://www.cii.in/PressreleasesDetail.aspx?enc=goReQRg51mnQ2zns/+HR3z62KFXrBfE5JSUN+tVeb6cDu6dl5cJnjBNuzyj2T92FDjARV96 BhyQoq3DXwliSE40F+B6HHVjhatrI03JeDlE=, accessed 12 October 2012 85 “State Policies,” http://www.investrajasthan.com/state-policies.cms, accessed on 22 October 2012 87NCR Master Plan 2021, NCR Planning Board 86“Faster, Sustainable and More Inclusive Growth: An Approach to the Twelfth Five Year Plan,” The Planning Commission of India, October 2011

37 2012 38 Confederation of Indian Industry IV. POLICY INITIATIVES: CONTINUOUS ENHANCEMENT Government policies play a major role in Punjab is making a considerable progress to under Phase II has been recommended for the the region is estimated at INR1,500 million. promoting investments in any region. Various facilitate the industrialization which is estimated Twelfth Five Year Plan period. state governments in the northern region have to require INR1 trillion of investments. An oil In a bid to drive the growth of the leather been prompt to provide a favourable investment refinery with an estimated investment of USD4 In another step to make handloom an attractive industry and the need for accurate design environment for private sector. In the recent billion (jointly promoted by ArcelorMittal and sector and garner investment, the Ministry of development to meet international standards, past, there have been a number of HPCL) at Bathinda is about to become Urban Development & Poverty Alleviation has the Planning Commission has proposed the developments and policy initiatives setting the operational. The Right to Service Act was allotted 1.8 acres of land in Delhi to the Ministry establishment of two national design studios — tone of high growth across the region. Various implemented to bring in transparency. The state of Textiles for the construction of a topnotch one of them is in North India (Rohtak, Haryana). state governments have undertaken a whole is also mulling over to have a dedicated handloom marketing complex. This facility will This studio will have supporting infrastructure gamut of administrative reforms to facilitate Technical Education & Industrial Training policy provide infrastructural support to handloom and facilities for various R&D activities in the quick decision-making, cut down red tape, to reduce the gap between Industry and agencies that will facilitate handloom agencies design and forecasting space. to increase their sales and offer quality provide single window clearances and deemed Academia and train the youth as per skills In view of the lack of power supply and the 84 handloom products. The complex is also approvals and encourage private sector required by the Industry. shortage of traditional raw material, a tentative expected to serve as a forum for the promotion investment. target for grid interactive renewable power Some of the bigger states have a well-laid out of handloom products both in the domestic and addition of 18,500 MW (wind-11,000 MW, There have been various policy initiatives taken industrial policy in place. The Uttar Pradesh international markets. in the agriculture and food processing sector Government has taken several measures for the solar-3,800 MW, small hydro-1,600 MW and which is the backbone of the region. Punjab development of industrial sector with an For the integrated growth of the pharmaceutical biomass-2,100 MW) has been estimated during industry and for infrastructural development the Government is planning to amend the investor-friendly policy framework. Some of the the Twelfth Five Year Plan. While the estimates Planning Commission has acknowledged the Agriculture Produce Marketing Committee thrust areas for the state include Agribusiness, of these additions by state are yet to be importance of a cluster-based approach as an (APMC) Act, which would go a long way in IT/ITeS, Biotech, food processing, handicrafts assessed, it is estimated that wind and solar effective and sustainable strategy for the strengthening the state's agricultural economy. and tourism. Another large state in the region, power will be concentrated in Rajasthan, while competitive enhancement of micro, small and The Government also enacted 'Contract Farming Rajasthan announced its industrial policy in 2010 small hydro would be available in Himachal medium enterprises (MSMEs). Accordingly, the Act' to ensure better remunerative prices to the to catalyze investments, accelerate inclusive Pradesh and Uttarakhand. beleaguered peasantry.80 Besides Himachal economic growth and create large scale Planning Commission plans to set up 10 clusters Pradesh, Uttarakhand and Rajasthan have also employment opportunities in the state. The by the end of the Twelfth Five Year Plan to For Rajasthan, the capacity addition of 1,500 modified the APMC Act for direct marketing, policy aimed at developing high quality provide infrastructure gaps for increased MW of wind energy and 1,300 MW of solar contract farming and markets in infrastructure and enhancing skill levels and production, including taking care of the energy have been planned. An investment of private/cooperative sectors. Other three states, employability by setting up training institutes in environment, power and labs testing. Of these INR23.5 billion in transmission infrastructure is Punjab, Delhi and Haryana, have undertaken PPP.85 Chandigarh is also in the process of 10 proposed clusters, three will be set up in the proposed for the evacuation of wind and solar partial reforms in the APMC Act.81 preparing an industrial policy to promote the northern region— Baddi (Himachal Pradesh), power. For Himachal Pradesh, the capacity expansion of micro, small and medium-scale Haridwar (Uttarakhand) and Gurgaon (Haryana). addition of 560 MW through small hydro Various states in the northern region have made enterprises along with a major emphasis on It is estimated that each cluster will require projects has been planned, with an investment significant progress in improving the availability development of the IT sector. investments of about INR500 million. of INR4.1 billion in transmission infrastructure. of land for various economic activities. While Accordingly, the total budgetary requirement for Haryana has fully computerized the land records, Further, upcoming Central Government policy other states such as Punjab, Himachal Pradesh, documents such as the Twelfth Five Year Plan 2. National Capital Region policy87 Rajasthan, Uttar Pradesh and Uttarakhand have and the NCR policy are projected to have made significant progress on that front.82 significant positive announcements for the The NCR Planning Board has drafted a twenty integrated regional drainage plan would also Rajasthan and Punjab have increased the lease region in future. The following section outlines year growth and development plan for NCR require significant investment in future. Huge period and ensured the owner's right on his some of the major initiatives planned for the 83 region. The plan aims at facilitating high tech investments into telecommunications, social land. region and their positive impact on the region's future development. services sector in Delhi to help it emerge as a infrastructure, tourism and heritage are also global city in the world. The significant bound to happen considering the proposals 86 1. Twelfth Five Year Plan infrastructure improvement has also been made under NCR 2021 Plan. Considering schemes by industry and plans power backlog in Uttar Pradesh where a large proposed for the development of expressways To conclude, for the northern region, future proposed in the approach paper of the Twelfth number of habitations remain uncovered in and railroads. The NCR plan also promotes the Five Year Plan, there are likely to be many schemes devised under the Eleventh Five Year policies have shown increased focus on positive announcements to give further impetus Plan and significant population has no power recycling and reuse of waste water for non investment in pharmaceuticals, electricity, to the northern region. Special emphasis is likely connectivity. drinking purposes. The creation of such telecommunication, roads and bridges, airports, to be given to areas with poor connectivity, and infrastructure would further demand high In Jammu & Kashmir's handloom industry, water supply and sanitation. These policy especially in a large number of districts in Uttar where Phase I of the project to create weaving investments. Better water demand initiatives are likely to strengthen the investment Pradesh, which have experienced much less facilities was completed during the Eleventh management, improvement in the supply of development than the state. The Twelfth Five environment and would create long term Plan, the completion of pre- and post- activities Year Plan also plan to focus on the significant quality of water and implementation of growth prospect in the northern region.

37 2012 38 Confederation of Indian Industry 3. Leveraging PPPs for comprehensive infrastructure development V. LOOKING AHEAD: KEEPING THE FUTURE IN FOCUS PPPs play a crucial role in developing rising. However, there exists a regional infrastructure given the large-scale investment imbalance. The share of the northern region in The northern region is blessed with natural These include building infrastructure capabilities, required to develop it. In India, PPPs in various the total number and value of PPP projects in resources, an educated workforce, a strong shaping a quality workforce for business, infrastructure sectors such as airports, infrastructure is low — only 18.9 percent by consumer base, and rapidly developing leveraging PPPs for comprehensive infrastructure education, energy, healthcare, ports, railways, number and 21.3 percent by value — as infrastructure. Yet, it has not been able to fully development and the overall commitment to roads and urban development are continuously compared to the southern and western regions. realize its investment potential to date. To execute plans and measure governance Figure 13: Northern region's share in the Figure 14: Northern region's share in the attract investment and position itself as a outcomes. These aspects, if addressed, can pave number of PPP projects total value of PPP projects preferred investment destination within India, the way for a thriving investment-driven future. the region needs to focus on certain key areas. Eastern Eastern Northern region, Northern Figure 12: Key action items and their components region, region, 11.3% region, 13.9% 18.9% Western 21.3% region, 27.2%

Governance Western region, Partnerships 31.0% Southern Southern region, Physical Skill Infrastructure region, Infrastructure 36.2% 40.2% Action Item

• Roads • Number of schools, colleges • PPPs • Policy formulation Source: “Public Private Partnerships in the Northern • Rail connectivity and vocational training faciliteis • Industry liaisons • Outcome measurement Region”, CII, 2011 • Transport and logstics • Access to education facilities • Civil society partners • Monitoring and evalution • warehouse • Availability of faculty • Interface with ngos/social • Foster smooth traction among • Power • Penetration of enhanced • Development agencies key components • Water and resource supply teaching methodologies Imbalance in the number and value of PPP percent) and Haryana (9.5 percent). In terms of • Student enrollment and

Action components dropout Scenario projects also prevails within the region, with project value, Uttar Pradesh leads with a share Rajasthan accounting for the maximum number of 33.5 percent followed by Rajasthan (18.4 of PPP projects (41.2 percent) followed by percent), Haryana (17.1 percent) and Delhi (13.7 Activity* Build the capabilities Shape a quality workspace Leverage to enhance capabilities Commit to execute and measure Punjab (23.0 percent), Uttar Pradesh (12.2 percent).

1. Building physical infrastructure capabilities 4. Commitment to execute plans and measure governance outcomes Physical infrastructure, such as power completion of these projects for reducing the availability, rail and road connectivity, logistics current deficit and preparing for the future Responding to the needs of investors, the the region have been successfully implemented. and transport facilities, warehousing and cargo- needs. northern states have set clear timeframes for These include identifying and defining thrust handling facilities, is the key to all economic various clearances and approvals and have set areas for industrial policies in Uttarakhand, The region has only three approved free trade activity and essential for the growth of any up single windows and nodal agencies to lowering procedural delays for pharmaceutical warehousing zones (FTWZs), while the western industrial sector. In North India, infrastructure promote industrial growth. However, investments in Himachal Pradesh, collaborating and southern regions have five and four has taken significant strides in recent times. implementation leaves much to be desired, with on education in Rajasthan, introducing public approved projects, respectively. In addition, the DFCs and industrial corridors would contribute clearances taking more time than stipulated in interface initiatives in Punjab, and establishing of northern region has only one air cargo village, positively to the region's connectivity. many northern states. This calls for increased a single-window system in all states for project while the western and southern regions commitment and focus on policy development, clearances. However, the key is consistency and, On the power front, region's peak power deficit collectively have five out of six air cargo facilities, 88 and more on, execution. more importantly, communicating these stood at 7.8 percent. The majority of the (available and planned), in the country. achievements to industry. outstanding investments for the state Therefore, the northern states need to push for Several key proactive governance initiatives in governments are pertaining to power projects. a relatively high share of warehousing zones to The governments need to ensure the timely cater to the future. 5. A collective vision and a collaborative approach A collaborative effort is required to realize the Himachal Pradesh and export goods that reach 2. Shaping the quality workforce for business power of the northern states. The similarities the port via Rajasthan. and complementing skills across the region open According to a CII-KPMG report, 'Tomorrow's trend, not only through systematic and phased The first step towards collaboration would North: Green & Educated', March 2010, the investments but also by fostering partnerships to the doors for infinite possibilities. Why can't an require states to create a common regional northern states may require an investment of upgrade the education system via capacity entrepreneur from Punjab set up a factory in institution, which can evaluate and articulate key USD84 billion to meet the demand-supply building and developing enhanced teaching Haryana, access capital from Delhi, employ policy frameworks to enable collaboration across challenges that prevail in its skill and education methods. The plan should facilitate access, labour from Uttar Pradesh, use power from sector. At this crucial juncture, the region should equity and inclusive education to shape a quality key facets of commerce and business. gear up to take advantage of the demographic work force for businesses in the region. 6. Inculcating best practices For a region to be able to attract a healthy skilled workforce and most importantly positive investment mix there is a combination of some policy interventions coupled with a strong key success factors required, such as land political will. While the North has most of these availability, connectivity, financing, power, ingredients in place, a few examples from the

88 “Load Generation Balance Report 2012-13”, Central Electricity Authority, Ministry of Power, Government of India

39 2012 40 Confederation of Indian Industry 3. Leveraging PPPs for comprehensive infrastructure development V. LOOKING AHEAD: KEEPING THE FUTURE IN FOCUS PPPs play a crucial role in developing rising. However, there exists a regional infrastructure given the large-scale investment imbalance. The share of the northern region in The northern region is blessed with natural These include building infrastructure capabilities, required to develop it. In India, PPPs in various the total number and value of PPP projects in resources, an educated workforce, a strong shaping a quality workforce for business, infrastructure sectors such as airports, infrastructure is low — only 18.9 percent by consumer base, and rapidly developing leveraging PPPs for comprehensive infrastructure education, energy, healthcare, ports, railways, number and 21.3 percent by value — as infrastructure. Yet, it has not been able to fully development and the overall commitment to roads and urban development are continuously compared to the southern and western regions. realize its investment potential to date. To execute plans and measure governance Figure 13: Northern region's share in the Figure 14: Northern region's share in the attract investment and position itself as a outcomes. These aspects, if addressed, can pave number of PPP projects total value of PPP projects preferred investment destination within India, the way for a thriving investment-driven future. the region needs to focus on certain key areas. Eastern Eastern Northern region, Northern Figure 12: Key action items and their components region, region, 11.3% region, 13.9% 18.9% Western 21.3% region, 27.2%

Governance Western region, Partnerships 31.0% Southern Southern region, Physical Skill Infrastructure region, Infrastructure 36.2% 40.2% Action Item

88 “Load Generation Balance Report 2012-13”, Central Electricity Authority, Ministry of Power, Government of India

39 2012 40 Confederation of Indian Industry rest of the country could help to further leverage specialised education. We need to focus inwards State nodal officers for industry its potential. and create a stronger education infrastructure to groom and retain talent within the country for If we look across the country, there are several Chandigarh Delhi participating in the next generation of growth. examples where a particular region or state has Southern India, with its strong footprint of Mr Anil Kumar, IAS Mr Shakti Sinha been able to demonstrate these factors in engineering colleges has been able to derive the Home Secretary cum Secretary - Industries Principal Secretary Industries & Managing totality for the benefit of its potential investor. edge in creating a strong IT/ ITeS workforce for Chandigarh Administration Director Delhi State Industrial & Infrastructure Development Whether it is the creation of dedicated land themselves. They are now well equipped to 4th Floor, UT Secretariat Corporation banks, identified sectors of growth, positive Sector 9 N-36, Bombay Life Building graduate to the next level of technological policy interventions, or the investment in Chandigarh Connaught Circus New Delhi 110 001 advancement & skills required in this sector. The fundamentals of social/ physical infrastructure; Tel. +91 172 2740008 Phone : 011- 23736927 north has traditionally been the birth place for all have a role to play. In order to focus on high Email : [email protected] Email : [email protected] IT/ITeS and should focus to retain this advantage technology industries; certain states have by creating advanced and specialised institutions encouraged the development of various catering to the needs of future trends and Haryana Himachal Pradesh knowledge corridors. These corridors are helping the industry to move up the value chain. Mr Y S Malik Dr P C Kapoor equipped with the entire infrastructure required Principal Secretary-Industry & Commerce, Addl Chief Secretary – Industries, Labour & to facilitate research and development (R&D) Other measures such as computerization of land IT, Mines and Geology Government of Haryana, R No Employment Government of Himachal Pradesh across sectors. They also help to provide a records, driving efficiency into the agri supply 46/9, Haryana Civil Secretariat Chandigarh Govt Secretariat Shimla conducive environment of investments and help chains by removing middle men, creating Phone: 0172-2740009 Tel: 0177 – 2880794 incubate R&D centers and innovation hubs for warehousing and organizing weekly regulated Fax: 0172-2749985 Fax: 0177 – 2620105 large organisations. For example, the southern markets to enable producers to sell directly to Mr Rajeev Arora Email: [email protected] region has created quite a few of these IT and consumers could be few steps for the Northern MD , HSIIDC C-13/14, Institutional Area, Sector 6 Engineering corridors. region's agrarian economy. For example, Panchkula computerization of records, apart from Similarly, the western region has effectively Ph no. 0172 -2590324,2590475 expediting the land acquisition, also lowers leveraged an interplay of positive policy Fax: 0172- 2590352 conflicts and boost investors' confidence. interventions and a clear vision of the local Another vital aspect which complements these government for encouraging investments in core fundamental points is the will and intention of areas such as infrastructure, mega scale projects Jammu & Kashmir Punjab the respective government in the region. The which provide employment upwards of 2,000 Mr Shantmanu Mr A R Talwar northern states could focus on taking people, incentivising young entrepreneurs and Commissioner Secretary - Industries & Commerce Principal Secretary – Industries, Commerce & confidence building steps like creation of more developing innovation clusters. Another forward Government of Jammu and Kashmir Information Technology Udyog Bhawan, 18 Himalaya robust single window clearance mechanism with looking step in the right direction is the creation Room No 1/ 32 Civil Secretariat Srinagar- J&K Marg Sector 17, Chandigarh – 160017 a defined escalation matrix; and its subsequent of the country's first few Aerospace special Tel/fax -0194-2450163 Phone No: 0172 – 2704472 effectiveness measurement through trade economic zones and/ or Aeroparks/ Aero cluster Fax No: 0172 – 2702836 portals. Lastly, learning from other examples in Commissioner Secretary - Industries & Commerce being developed in the western and southern the country, it is absolutely imperative to Government of Jammu and Kashmir regions of the country. These are typically being develop a positive brand name by creating a Room No 2/25 Mini Block Civil Secretariat Jammu. developed with a view to create an incremental sustainable interaction mechanism with Tele No:0191 -2547883 opportunity for the existing large auto potential investors through roadshows, Fax : 0191 – 2544050 manufacturing clusters in these regions. It has conclaves and events been observed globally, auto component players Uttarakhand typically graduate to aerospace manufacturing. In essence, the Northern region is putting the Rajasthan The northern region, with its strong auto right measures required for increasing its share Mr Sunil Arora Mr Rakesh Sharma manufacturing base, has an advantage over the of investments. With vital improvements to Principal Secretary- Industries & Chairman RIICO Ltd Principal Secretary, Industrial Development Government of Uttarakhand Chief Secretary's Office rest of the country. Concrete steps should be infrastructure and connectivity for more efficient Udyog Bhawan, Tilak Marg C-Scheme Jaipur Building State Secretariat, 4 Subhash Road Dehradun taken for creating an eco-system in the north for businesses, operating with robust resource Tel no : 0141- 5113200 Fax no : 0141- 5104804 Ph: 0135-2712090 these emerging industries to grow. availabilities, utilizing a skilled workforce living in Fax: 0135-2712098 smarter cities, created under a regulatory Email : [email protected] Another fundamental is the creation of E-mail: [email protected] framework governed by stable governments; knowledge enablers which helps to create an together have the potential to create a employable work force and thus benefits the framework which potentially can provide economy. For centuries, Indian students have Northern India its competitive edge for Uttar Pradesh flocked international colleges for higher or attracting investments in the future. Dr Anil Kumar Gupta Mr Mukul Singhal Infrastructure & Industrial Development Department Principal Secretary, SSI & Export Promotion Government of Uttar Pradesh, 4th Floor, Shri Lal Government of Uttar Pradesh Disclaimer Bahadur Shashtri Bhawan, Sarojini Naidu Marg, Tel: +91-522-2238020/2213431 The information contained herein is of a general nature and is not intended to address the circumstances Lucknow- 226 001. (U.P.) Fax +91-522-2238030 of any particular individual or entity. Although we endeavour to provide accurate and timely information, Phone No:- 91-522-2238283/2239530 there can be no guarantee that such information is accurate as of the date it is received or that it will Fax No:- 91-522-2238255 continue to be accurate in the future. No one should act on such information without appropriate Email :[email protected]; [email protected] professional advice after a thorough examination of the particular situation

41 2012 42 Confederation of Indian Industry rest of the country could help to further leverage specialised education. We need to focus inwards State nodal officers for industry its potential. and create a stronger education infrastructure to groom and retain talent within the country for If we look across the country, there are several Chandigarh Delhi participating in the next generation of growth. examples where a particular region or state has Southern India, with its strong footprint of Mr Anil Kumar, IAS Mr Shakti Sinha been able to demonstrate these factors in engineering colleges has been able to derive the Home Secretary cum Secretary - Industries Principal Secretary Industries & Managing totality for the benefit of its potential investor. edge in creating a strong IT/ ITeS workforce for Chandigarh Administration Director Delhi State Industrial & Infrastructure Development Whether it is the creation of dedicated land themselves. They are now well equipped to 4th Floor, UT Secretariat Corporation banks, identified sectors of growth, positive Sector 9 N-36, Bombay Life Building graduate to the next level of technological policy interventions, or the investment in Chandigarh Connaught Circus New Delhi 110 001 advancement & skills required in this sector. The fundamentals of social/ physical infrastructure; Tel. +91 172 2740008 Phone : 011- 23736927 north has traditionally been the birth place for all have a role to play. In order to focus on high Email : [email protected] Email : [email protected] IT/ITeS and should focus to retain this advantage technology industries; certain states have by creating advanced and specialised institutions encouraged the development of various catering to the needs of future trends and Haryana Himachal Pradesh knowledge corridors. These corridors are helping the industry to move up the value chain. Mr Y S Malik Dr P C Kapoor equipped with the entire infrastructure required Principal Secretary-Industry & Commerce, Addl Chief Secretary – Industries, Labour & to facilitate research and development (R&D) Other measures such as computerization of land IT, Mines and Geology Government of Haryana, R No Employment Government of Himachal Pradesh across sectors. They also help to provide a records, driving efficiency into the agri supply 46/9, Haryana Civil Secretariat Chandigarh Govt Secretariat Shimla conducive environment of investments and help chains by removing middle men, creating Phone: 0172-2740009 Tel: 0177 – 2880794 incubate R&D centers and innovation hubs for warehousing and organizing weekly regulated Fax: 0172-2749985 Fax: 0177 – 2620105 large organisations. For example, the southern markets to enable producers to sell directly to Mr Rajeev Arora Email: [email protected] region has created quite a few of these IT and consumers could be few steps for the Northern MD , HSIIDC C-13/14, Institutional Area, Sector 6 Engineering corridors. region's agrarian economy. For example, Panchkula computerization of records, apart from Similarly, the western region has effectively Ph no. 0172 -2590324,2590475 expediting the land acquisition, also lowers leveraged an interplay of positive policy Fax: 0172- 2590352 conflicts and boost investors' confidence. interventions and a clear vision of the local Another vital aspect which complements these government for encouraging investments in core fundamental points is the will and intention of areas such as infrastructure, mega scale projects Jammu & Kashmir Punjab the respective government in the region. The which provide employment upwards of 2,000 Mr Shantmanu Mr A R Talwar northern states could focus on taking people, incentivising young entrepreneurs and Commissioner Secretary - Industries & Commerce Principal Secretary – Industries, Commerce & confidence building steps like creation of more developing innovation clusters. Another forward Government of Jammu and Kashmir Information Technology Udyog Bhawan, 18 Himalaya robust single window clearance mechanism with looking step in the right direction is the creation Room No 1/ 32 Civil Secretariat Srinagar- J&K Marg Sector 17, Chandigarh – 160017 a defined escalation matrix; and its subsequent of the country's first few Aerospace special Tel/fax -0194-2450163 Phone No: 0172 – 2704472 effectiveness measurement through trade economic zones and/ or Aeroparks/ Aero cluster Fax No: 0172 – 2702836 portals. Lastly, learning from other examples in Commissioner Secretary - Industries & Commerce being developed in the western and southern the country, it is absolutely imperative to Government of Jammu and Kashmir regions of the country. These are typically being develop a positive brand name by creating a Room No 2/25 Mini Block Civil Secretariat Jammu. developed with a view to create an incremental sustainable interaction mechanism with Tele No:0191 -2547883 opportunity for the existing large auto potential investors through roadshows, Fax : 0191 – 2544050 manufacturing clusters in these regions. It has conclaves and events been observed globally, auto component players Uttarakhand typically graduate to aerospace manufacturing. In essence, the Northern region is putting the Rajasthan The northern region, with its strong auto right measures required for increasing its share Mr Sunil Arora Mr Rakesh Sharma manufacturing base, has an advantage over the of investments. With vital improvements to Principal Secretary- Industries & Chairman RIICO Ltd Principal Secretary, Industrial Development Government of Uttarakhand Chief Secretary's Office rest of the country. Concrete steps should be infrastructure and connectivity for more efficient Udyog Bhawan, Tilak Marg C-Scheme Jaipur Building State Secretariat, 4 Subhash Road Dehradun taken for creating an eco-system in the north for businesses, operating with robust resource Tel no : 0141- 5113200 Fax no : 0141- 5104804 Ph: 0135-2712090 these emerging industries to grow. availabilities, utilizing a skilled workforce living in Fax: 0135-2712098 smarter cities, created under a regulatory Email : [email protected] Another fundamental is the creation of E-mail: [email protected] framework governed by stable governments; knowledge enablers which helps to create an together have the potential to create a employable work force and thus benefits the framework which potentially can provide economy. For centuries, Indian students have Northern India its competitive edge for Uttar Pradesh flocked international colleges for higher or attracting investments in the future. Dr Anil Kumar Gupta Mr Mukul Singhal Infrastructure & Industrial Development Department Principal Secretary, SSI & Export Promotion Government of Uttar Pradesh, 4th Floor, Shri Lal Government of Uttar Pradesh Disclaimer Bahadur Shashtri Bhawan, Sarojini Naidu Marg, Tel: +91-522-2238020/2213431 The information contained herein is of a general nature and is not intended to address the circumstances Lucknow- 226 001. (U.P.) Fax +91-522-2238030 of any particular individual or entity. Although we endeavour to provide accurate and timely information, Phone No:- 91-522-2238283/2239530 there can be no guarantee that such information is accurate as of the date it is received or that it will Fax No:- 91-522-2238255 continue to be accurate in the future. No one should act on such information without appropriate Email :[email protected]; [email protected] professional advice after a thorough examination of the particular situation

41 2012 42 Confederation of Indian Industry KPMG in India Confederation of Indian Industry KPMG in India, a professional services firm, is the Indian member firm of KPMG International and was established in September 1993. Our professionals leverage The Confederation of Indian Industry (CII) works to create and sustain an environment the global network of firms, providing detailed knowledge of local laws, conducive to the growth of industry in India, partnering industry and government alike regulations, markets and competition.KPMG in India provide services to over through advisory and consultative processes. 4,500 international and national clients, in India. KPMG has offices across India in CII is a non-government, not-for-profit, industry led and industry managed organisation, Delhi, Chandigarh, Ahmedabad, Mumbai, Pune, Chennai, Bangalore, Kochi, playing a proactive role in India's development process. Founded over 117 years ago, it is Hyderabad and Kolkata. The Indian firm has access to more than 5,000 Indian India's premier business association, with a direct membership of over 7000 organisations and expatriate professionals, many of whom are internationally trained. We strive from the private as well as public sectors, including SMEs and MNCs, and an indirect to provide rapid, performance-based, industry-focused and technology-enabled membership of over 90,000 companies from around 400 national and regional sectoral services, which reflect a shared knowledge of global and local industries and our associations. experience of the Indian business environment. CII catalyses change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a KPMG is a global network of professional firms providing Audit, Tax and Advisory range of specialised services and global linkages. It also provides a platform for sectoral services. We operate in 153 countries and have 145,000 people working in consensus building and networking. Major emphasis is laid on projecting a positive image member firms around the world. Our Audit practice endeavors to provide robust of business, assisting industry to identify and execute corporate citizenship programmes. and risk based audit services that address our firms' clients' strategic priorities Partnerships with over 120 NGOs across the country carry forward our initiatives in and business processes. integrated and inclusive development, which include health, education, livelihood, diversity management, skill development and water, to name a few.

KPMG's Tax services are designed to reflect the unique needs and objectives of The CII Theme for 2012-13, 'Reviving Economic Growth: Reforms and Governance,' each client, whether we are dealing with the tax aspects of a cross-border accords top priority to restoring the growth trajectory of the nation, while building Global acquisition or developing and helping to implement a global transfer pricing Competitiveness, Inclusivity and Sustainability. Towards this, CII advocacy will focus on strategy. In practical terms that means, KPMG firms' work with their clients to structural reforms, both at the Centre and in the States, and effective governance, while assist them in achieving effective tax compliance and managing tax risks, while taking efforts and initiatives in Affirmative Action, Skill Development, and International helping to control costs. Engagement to the next level.

With 63 offices including 10 Centres of Excellence in India, and 7 overseas offices in KPMG Advisory professionals provide advice and assistance to enable companies, Australia, China, France, Singapore, South Africa, UK, and USA, as well as institutional intermediaries and public sector bodies to mitigate risk, improve performance, partnerships with 223 counterpart organisations in 90 countries, CII serves as a reference and create value. KPMG firms provide a wide range of Risk Consulting, point for Indian industry and the international business community. Management Consulting and Transactions & Restructuring services that can help clients respond to immediate needs as well as put in place the strategies for the longer term. Confederation of Indian Industry Northern Region Headquarters Sector 31 A, Chandigarh 160030, INDIA T: +91 172 5022522, 2607228 F: +91 172 2606259, 2614974 buzzimc.com

43 2012 KPMG in India Confederation of Indian Industry KPMG in India, a professional services firm, is the Indian member firm of KPMG International and was established in September 1993. Our professionals leverage The Confederation of Indian Industry (CII) works to create and sustain an environment the global network of firms, providing detailed knowledge of local laws, conducive to the growth of industry in India, partnering industry and government alike regulations, markets and competition.KPMG in India provide services to over through advisory and consultative processes. 4,500 international and national clients, in India. KPMG has offices across India in CII is a non-government, not-for-profit, industry led and industry managed organisation, Delhi, Chandigarh, Ahmedabad, Mumbai, Pune, Chennai, Bangalore, Kochi, playing a proactive role in India's development process. Founded over 117 years ago, it is Hyderabad and Kolkata. The Indian firm has access to more than 5,000 Indian India's premier business association, with a direct membership of over 7000 organisations and expatriate professionals, many of whom are internationally trained. We strive from the private as well as public sectors, including SMEs and MNCs, and an indirect to provide rapid, performance-based, industry-focused and technology-enabled membership of over 90,000 companies from around 400 national and regional sectoral services, which reflect a shared knowledge of global and local industries and our associations. experience of the Indian business environment. CII catalyses change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a KPMG is a global network of professional firms providing Audit, Tax and Advisory range of specialised services and global linkages. It also provides a platform for sectoral services. We operate in 153 countries and have 145,000 people working in consensus building and networking. Major emphasis is laid on projecting a positive image member firms around the world. Our Audit practice endeavors to provide robust of business, assisting industry to identify and execute corporate citizenship programmes. and risk based audit services that address our firms' clients' strategic priorities Partnerships with over 120 NGOs across the country carry forward our initiatives in and business processes. integrated and inclusive development, which include health, education, livelihood, diversity management, skill development and water, to name a few.

43 2012