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INDIA GL BAL BUSINESS UK Edition Where's the Brexit Bus Heading?
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DESPATCH BOX HOTSPOT GLOBAL INDIAN Post-Brexit Britain should be building Poland's promise for The Indian wine market is one bridges with India, not burning them investors from India of the world’s most exciting Lord Karan Bilimoria Ada Dyndo Rajeev Samant UK Council for International Student Affairs Polish Investment & Trade Agency Founder, Sula Vineyards
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Sajid, smart young Indians must be encouraged to jump on the Global Britain bus ith Sajid Javid’s appointment as Home community, are job makers, not job takers. Secretary, those who believe in meritocracy, aspiration and progressive immigration policies I admit that forecasts for the UK’s future outside of the Ware hoping that they have a voice in the UK Cabinet. European Union are gloomy. Deal, no deal, hard or soft Brexit, one thing we have seen is that the UK is in need of I count myself among them. Like Sajid, I was born to dynamic partners and the EU is not suited to playing this immigrant parents who came to the UK for a new life in part. The fault has been to consider ties with India weaker inner-city Birmingham. for the Brexit vote – they need not be.
Hardworking immigrant families like mine and Sajid’s Tasked with establishing a frictionless border at the Irish played an important role in building post-war Britain. The border, Indian IT companies are emerging now at the legacy of the successful integration of the overwhelming cutting edge of tech advancements in AI and firmware. majority of the British Asian diaspora is proof that those In the short term, firms such as TCS and Infosys could progressive immigration policies still have a place in the possibly provide innovative and cost-effective solutions to UK today. the border and customs question, changing the nature of the issues the UK faces altogether. It seems only right that the son of an immigrant bus driver from Pakistan, THE UK CAN TREAT Other stones remain unturned. India’s now a rising Tory star, should hold the INDIA AS PART OF pharmaceutical industry has a proven power to bring about the end of the THE SOLUTION TO record of providing safe and cost- ‘hostile policies’ that have characterised THE CURRENT MESS, effective essential medicines at scale, the Home Office’s treatment of NOT JUST ANOTHER yet the idea of establishing a much immigration in recent years. PROBLEM. more robust supply of Indian medicines to the UK remains unexplored. As he starts to tackle the vexed issue of immigration, Sajid Javid should use his own heritage India continues to give its vote of confidence in the UK’s and journey as a source of strength and inspiration, rather green technology sector, too. In July this year, Bharat than pander to the isolationists in his party who say ‘the Forge invested £10 million in UK-based Tevva Motors, bus is full’. which is developing electric vans capable of a greater range than competitors in this space. Major issues are about to rear their head. In September, the Migration Advisory Committee will issue a report The UK can treat India as part of the solution to the on international students which is expected to further current mess, not just another problem. We must seek increase pressure on the government to remove students out serious business opportunities, the building blocks for – including over 16,000 Indians in the UK – from net strategic engagement. Then, an agreement on free trade migration calculations and instead seek to attract more could be much closer than we think. of them to our country to become talented graduates and lifelong ambassadors. Immigration is vital in changing the nature of the dialogue between bilateral partners, and Sajid Javid, in place as He will have an even greater job to do, to foster a better Home Secretary, must recognise the role that he also visa regime for Indian IT workers, doctors and nurses plays in establishing a pragmatic dialogue between the who continue to come to this country to support vital UK and its closest partners. Smart young Indians must be businesses and public services. encouraged to jump on the Global Britain bus now more than ever before. Any other message will only hurt the UK. Building Global Britain in the spirit of these progressive immigration policies could be considered a way to spite Manoj Ladwa the Brexit vote, but this should not obscure the real Publisher & CEO, India Inc. opportunity here. Immigrant communities, like the Indian @manojladwa www.indiaincgroup.com August 2018 3 CONTENTS The UK Edition of ‘India Global Business’ presents all sides of the argument around free movement of people in the context of closer post-Brexit India-UK relations. And, an array of Guest Columns, Interviews and Analyses cover detailed foreign direct investment updates, in and out of India.
COVER STORY 8 14 YES Bank gears up to establish presence in UK Interview with Rana Kapoor, Managing Director & CEO, YES Bank
Eye on Brexit
Easier visa regime will 19 Tata Steel strikes European deal to secure jobs benefit Britain more by India Inc. Staff than India by India Inc. Staff 22 India reaped a bumper harvest of jobs in 2017-18 by India Inc. Staff GUEST COLUMN FROM THE TOP
3 Sajid, smart young Indians 26 Engaging the youth for must be encouraged to jump a vibrant Commonwealth on the Global Britain bus by Layne Robinson, Head – by Manoj Ladwa, Social Policy Development, Founder & CEO, India Inc. Commonwealth Secretariat DESPATCH BOX 30 The Small Print: Start-ups will define the future of employment in India 12 Post-Brexit Britain by Dr Param Shah, Director – UK, should be building Federation of Indian Chambers of bridges with India, Commerce & Industry (FICCI) not burning them by Lord Karan Bilimoria, President, UK 32 HOTSPOT: Poland’s promise for Council for International investors from India Student Affairs by Ada Dyndo, Head, Polish Investment and Trade Agency
4 August 2018 34 The Big Picture: Measuring the true impact of soft power by Dr Gareth Price, Senior Research Fellow, Asia 48 Influencing Global Programme, Chatham House Outcomes Together by Sir Michael Arthur, Britain’s COUNTRY FOCUS former envoy to India
36 India-Korea: A renewed push by India Inc. Staff
REGION FOCUS 51 Social Impact Focus: Fighting for the right to sanitation 39 Oxford and India: by Meenakshi Batra, CEO, Charities Aid Building on historic ties Foundation (CAF) by Sachi Patel, Founder, Oxford India Speaker Series 54 Last Word: India cracks down on economic offenders
GLOBAL INDIAN Published by Incorporating
www.indiaincgroup.com © India Inc. Limited, all rights reserved. Reproduction in whole or in part without our written permission is prohibited. Views expressed by our contributors are their own and do not necessarily represent the views, policies of India 42 The Indian wine market is one of the world’s Inc. While every effort is made to achieve total most exciting accuracy India Inc. cannot be held responsible for Interview with Rajeev Samant, Founder & CEO, any errors or omissions. Sula Vineyards Editorial [email protected] 45 Why UK and India need to Advertising & Sponsorship PRICE £4.95 reform their visa processes [email protected] PUBLISHED IN LONDON by Dr Mohan Kaul, President, Indian Professionals Forum (IPF)
www.indiaincgroup.com August 2018 5
Where's the Brexit Bus Heading? nfluential voices within the UK five years and this trend doesn’t look risk” countries whose nationals would are saying the UK may be hurting like it will change anytime in the near be subjected to less stringent visa itself by adopting a restrictive future. Blaming the anti-immigrant procedures, is holding up what could Iimmigration policy. There is a very real Brexit sentiment for this state of affairs otherwise be a win-win trade and danger that the country may lose its may not hold water. strategic partnership between London position as the second most popular and New Delhi. destination for students pursuing That vote was driven by anxiety higher studies to Australia. And at over job losses to East European But with India’s talks on an FTA with a time when it needs to stitch up immigrants, who had unfettered the EU reaching a dead end and with mutually beneficial trade deals with access to the British job market. But both a Global Britain and a Global large trading partners following Brexit, Indians, as the following report and India needing mutually beneficial placing unreasonable restrictions numerous studies show, are not job trade deals in an increasingly on the entry of Indian students, takers; on the contrary, they are job isolationist and protectionist world, creators, generating significant value there is a new window of opportunity professionals and businessmen on and employment in the UK with their to resolve this issue and move ahead entering Britain could prove counter- industry, innovation and enterprise. with a pact. productive. Also, the UK government’s hardline Read on for the latest news and The number of Indian students stance on granting visas to Indians, incisive analysis on this important enrolling for higher studies in the UK and its latest decision to exclude issue. has fallen precipitously over the last Indian students from a list of “low- COVER STORY Easier visa regime will benefit Britain more than India by India Inc. Staff
he Theresa May government’s total number of students choosing the hard line on immigration is not UK grew a paltry 11,000 or 2.6 per only causing outrage in India, cent. That means the total number of Tit is also costing the UK dear. Oxford, students entering the UK that year Tough immigration Cambridge, St. Andrews, SOAS, LSE was about 423,000. norms in the UK are and many other iconic institutions that made Great Britain a magnet for The intake of foreign students in holding up a proposed students around the world seeking Australian educational institutions, trade deal with India. higher education are drawing fewer which was a little less than 300,000 But studies show that international students. in 2015, is growing at 12-14 per cent. If the relative growth rates don’t easier visas will also The UK, for long the most popular change drastically, Australia will help Britain stave destination for international students replace the UK in the second spot after the US, is likely to soon lose within a few years. off competition from that coveted position to Australia. A Australia and retain its University College London (UCL) In fact, the report, authored by Prof. position as the second- report released on July 19 says the Simon Marginson, Director of CGHE number of international students and Professor of International Higher most popular education going to the UK for higher studies has Education at the UCL Institute of destination in the world. shown barely any growth since 2012. Education, says Australia may have surpassed the UK on the number or Losing attraction students in tertiary education in 2018. In 2015, Britain attracted 130,000 If it has not, it will almost certainly do more students than Australia but the so in 2019, the report adds.
8 August 2018 COVER STORY This process is likely to be hastened industrious, the Indian expat In India, Prime Minister Narendra by the UK’s exit from the European community, called the Living Bridge Modi has been a strong advocate of Union (EU). Currently, the rest of by Indian Prime Minister Narendra Indian companies becoming part of the EU sends the largest number Modi, has had a significant impact on the global supply chain in order to of students to the UK who pay a the British economy. lift the share of manufacturing in the much smaller fee than non-EU economy to 25 per cent from 16 per foreign students. This advantage There is ample evidence to prove cent at present. will disappear once Brexit happens, that Indians – whether students or leading, most analysts believe, to professionals – do not take away jobs. A Global Britain joining hands with a a substantial fall in students from Quite to the contrary, they are actually Global India for mutual benefit and the EU. job creators. the greatest common global good was a dream partnership that could shine Falling numbers from India Sample this: According to the Grant like a beacon in a world that was Restrictive and, in the opinions of Thornton ‘India Meets Britain Tracker becoming increasingly protectionist. many people, unreasonable and 2018’, about 800 Indian companies, unwarranted visa restrictions on which have invested billions of But no Indian government can Indians – and particularly students pounds in the country, generated make concessions on trade without from India – have led to a sharp fall £46.4bn in combined revenues, receiving reciprocal consideration on in the number of Indians studying in counted nearly 105,000 people on people movement. In other words, the UK. their payrolls and contributed £360m the Indian government was bound in corporation tax in 2017. to demand greater access to the UK According to estimates, the number and its educational institutions for its of student arrivals from India fell to a professionals and students in return low of 9,720 in 2016-17 from almost EDUCATED, HARD- for lowering entry barriers for British 24,000 six years previously, a decline WORKING AND goods into the British government. of 60 per cent. INDUSTRIOUS, But the hard stance of the May Another set of figures released by the THE INDIAN EXPAT government on immigration made UK Council for International Student COMMUNITY, CALLED it difficult for the talks to go forward, Affairs in January this year, said the THE LIVING BRIDGE BY resulting in a continuation of the number of Indian students getting UK INDIAN PRIME MINISTER transactionalism that has come to visas fell 44 per cent from five years NARENDRA MODI, HAS characterise the otherwise warm ago. Though the number for 2017 was relationship between the two HAD A SIGNIFICANT slightly more than that of the previous countries. year, it put the total number of Indian IMPACT ON THE BRITISH students entering the UK in 2017 at ECONOMY. This reluctance to pay heed to India’s 14,081 compared to 60,000 in 2010. concerns on immigration is also giving rise to an unhealthy impression Getting authentic numbers is difficult Jaguar Land Rover, Tetley, Typhoo in New Delhi and elsewhere in the but the reading of these two sets and a host of other iconic British country that London only wants of numbers leads one to the same brands have been bought over by India’s business but not its talent. conclusion: the number of Indian Indian entrepreneurs when they were India’s former Commerce Minister students choosing to study in the UK on the verge of collapse and revived, Nirmala Sitharaman (now Defence is falling quite dramatically. saving and creating thousands of Minster) even made this point on local jobs across the UK. According to an open platform to British Trade Job creators, not job takers the UK’s Department for International Secretary Dr Liam Fox during PM This is unfortunate because people- Trade (DIT), Indian companies added May’s visit to India in November 2016. to-people ties between the UK 6,867 jobs in 2016-17. and India are centuries old. The The latest blow 1.5 million-strong expat Indian Immigration holds up trade deal The decision of the UK to exclude population in the UK has contributed Experts and well-wishers in the UK Indian students from a list of “low- disproportionately to the country’s and India had hoped for a quick risk” countries whose nationals would social and cultural fabric and has conclusion of a UK-India trade deal be subjected to less stringent visa established itself as a model expat in the immediate aftermath of Brexit. procedures has proved to be the community that can blend seamlessly It was logical to expect the UK latest hurdle in the path of a closer into a milieu of the host country government to want to stitch up trade economic and strategic clinch, which without losing touch with its deals with large trading partners both countries acknowledge will be of country of origin. such as India in order to compensate immense mutual benefit. for the loss of markets flowing Educated, hard-working and from Brexit. Eyebrows were particularly raised in www.indiaincgroup.com August 2018 9 COVER STORY
India and also in some quarters in eventually, reach the top echelons Britain as countries like China and NO INDIAN of their professions – in industry, Bahrain have been included in the academia and politics – and serve list of countries subjected to easier GOVERNMENT CAN as ambassadors for closer bilateral entry rules. MAKE CONCESSIONS relations. A few other stay back in ON TRADE WITHOUT the UK and contribute meaningfully This move revived memories of the RECEIVING RECIPROCAL across all walks of life as is evident time a few years ago when the UK CONSIDERATION ON from the success stories of many Home Office sent vans to areas PEOPLE MOVEMENT. expat Indians in British business, with large Indian populations with academia and social life. the slogan “Go home or face arrest” emblazoned on them. In the ensuing Opportunity knocks a second time crackdown against illegal aliens, Chinese students, like students Now, there is another opportunity many genuine Indian students had from 27 other countries, can follow a to push for a bilateral trade deal also been sent back. streamlined process of applying for a between the UK and India. There ‘Tier 4’ student visa; Indian students are reports that negotiations on the The perception of bias towards China are still required to submit far more proposed Free Trade Agreement is only exacerbating the situation. The documentation on applying for a (FTA) between India and EU, stalled UK introduced discounted multiple- student visas. since 2013, have run aground again entry visas for Chinese visitors and and may not be resumed. business tourists at a price of for Encouraging more Indian students to The main point of divergence: the £87 – reduced from the usual £330 study in the UK has several collateral movement of professionals, the – when David Cameron was Prime benefits. Many of these highly same reason why similar talks with Minister, but has not done the same qualified students return to India and the UK have stalled. There are other for Indian visitors. factors at work here as well but easier
10 August 2018 COVER STORY
THERE IS AMPLE EVIDENCE TO PROVE THAT INDIANS – WHETHER STUDENTS OR PROFESSIONALS – DO NOT TAKE AWAY JOBS. entry norms for Indians to work and to present the two countries with to pull out from signing a pact on conduct business in the EU is by far mutually exclusive solutions to this this issue. the most important. problem that is in both their interests to resolve. Tightrope walk If these reports are correct, then The need of the hour was for the two history has placed both countries Reinterpreting the Brexit vote and countries to walk on eggshells as they at the crossroads. The UK, facing the facts tried to find a way to square this hole. a messy Brexit divorce and India, Here, India Inc. would like to revisit Instead, the British government went fighting increasing isolationism and the Brexit vote and its underlying ahead and announced a new visa protectionism in global markets, both message. Yes, it was a vote against policy that caused outrage in India. need good trade deals with large open borders. Yes, it was a vote trading partners. against unlimited immigration. Yes, it Britain will have to concede that its was a vote against foreigners taking intransigence – some have even Here, Britain will have to accept that over British jobs. called it a hard line – on immigration the balance of convenience and visas and its perceived has shifted in India’s favour targeting of Indians is not going and that it will, therefore, down well with New Delhi. have to walk the extra step to meet India. The Indian government, on the other hand, will have to factor That extra step could be in the anti-immigrant mood that concessions on immigration. fuelled the Brexit vote into its calculations when negotiating Opposite ends of the a trade deal with the UK. spectrum The Indian economy is Without this, Indian students led by its services sector, and professionals may well which is largely powered by look at greener pastures its large army of educated in Australia, Canada, New professionals. Being a Zealand, Singapore and knowledge economy means elsewhere. And by the looks that the easy movement of of the report cited at the its people across national beginning of this report, so are borders becomes critical for students from other countries. the success of the Indian economy in the international UCL’s Prof. Marginson said in arena. his recent report: “UK higher education is still highly valued The trade-off, therefore, for any trade internationally, but the government deal with India has to be access for But a deeper analysis of the vote will has held down the growth of goods into India in return for access show it was primarily a vote against international student numbers for for Indian professionals and students open borders and job seekers from five years, by limiting new student to foreign markets. Eastern and Southern Europe. numbers and post-study It is unfortunate that Indians have work visas. Now posit this against the Brexit vote, got conflated with the European the aftermath of which propelled May immigrants who triggered the “Meanwhile, competitor nations are into 10 Downing Street. This was a backlash. strongly promoting their international vote against immigration. And given education.” May’s earlier record on immigration Then, the May government’s as Home Secretary, it will be facile to assertion that there are as many as An easier visa regime, thus, will not believe that the UK government will 100,000 illegal aliens from India in only help bring India and the UK be willing to make any concessions the UK looks highly inflated. This closer, it will also help Britain retain its on this count. and the stiff terms proposed by the position as the second-most popular UK government for their repatriation destination for global students. On the face of it, it would seem to India forced Prime Minister Modi www.indiaincgroup.com August 2018 11 DESPATCH BOX Post-Brexit Britain should be building bridges with India, not burning them by Karan Bilimoria
A very vocal advocate of closer post-Brexit India- UK ties warns against unhelpful immigration rhetoric drowning out the true potential for collaboration between the two countries.
he UK Home Office announced non-European allies post-Brexit. Let’s are by far the most successful of any in June that 25 countries, also not forget that while international ethnic minority per capita in the UK. including China, Cambodia, students are treated as immigrants in TIndonesia and Kuwait, will benefit net migration statistics, in reality only The relationship goes even further, from relaxed Tier-4 visa regulations around 5 per cent stay in the UK after with £17.5 billion currently invested for international students. Indian completing their studies, as admitted in the world’s second most populous students coming to study in the UK last year by the Home Office. nation by the UK, providing more however – the number of which has than 370,000 jobs. Meanwhile, India already halved since 2010 – will This latest visa bombshell comes just gives as good as it gets in return, see no change. All the while, the two years after Chinese visitors to the contributing £26 billion to the British number of international students UK were offered a reduced fee of £85 economy through 800 businesses. going to Australia has increased by for a two-year multiple-entry visa for 18 per cent in the past three years, in business and tourist trips. For Indians, As the Founding Chairman of the UK- Canada by 27 per cent, and in Ireland the price was more than four times India Business Council, it is clear that by 43 per cent. Demand by Indians this figure and still is. whilst there has been tremendous to study abroad is increasing at 8 per investment both ways between the cent each year. Indians are being continually UK and India, bilateral trade could be discriminated against in British and should be much higher. In fact, At the time, UK International Trade immigration policy, and while I the UK trades more with Sweden than Secretary Liam Fox MP told some have asked for the reasons behind it does with India! reporters that “some Indian students this in the House of Lords on outstayed their welcome”. This many occasions, I have never Furthermore, Britain is now running at type of rhetoric is unacceptable, received an adequate answer. It is a $4.7 billion trade deficit with India. both considering the extremely incomprehensible when the UK has The UK, prior to the EU referendum, close historic ties between the two one of the world’s largest Indian was the Western world’s fastest countries, and at a time when the UK diasporas, with 1.5 million Indian-born growing economy and the fifth largest should be building bridges with its immigrants living in the country who globally. It has now been overtaken by
12 August 2018 DESPATCH BOX its former colony, which itself is This is in spite of the huge itself for Brexit with some heavy the fastest growing major economy in contribution Indians make to British flirting with – and investment in – the world. society – particularly in providing India, the UK could well be driving its doctors and nurses for the NHS, and Commonwealth ally into the arms of With Brexit looming, the British IT workers for businesses and the another European giant. government talks about going global public sector. It goes almost un- and striking free trade agreements noticed by a large proportion of the To prevent this, first and foremost (FTAs) with countries like India. But population, as does the tremendous the government must re-introduce FTAs need people to move freely growth of India as a global economic the two-year-post-study work visa. as well as goods. For as long as superpower since its liberalisation Eleven years ago, in Parliament, I the UK continues on the road of in 1991. spearheaded this policy to afford hostile immigration policy international students and ignores the tens the opportunity to of thousands of Indian automatically stay on in students who want to Britain and work for two come to the UK to study years after graduation. and work, any talk of an Unfortunately, this FTA with India is simply was dropped by the ridiculous. Conservative-led coalition government in 2012. If India is to strike up any free trade deals, it would I believe however that be far more inclined to Sajid Javid’s appointment do so with the European as UK Home Secretary Union itself – with trade — the first from an ethnic having tripled between minority background to the two since 2000. All hold this office — provides the while, the value of UK hope that this hostile and imports and exports have economically illiterate stagnated, and the UK’s attitude to immigration can share of EU-India trade change. While much of the has fallen from almost 30 Brexit debate is centred per cent to just 10 in less around anti-immigration than two decades. rhetoric, it should be clear to those INDIANS ARE BEING at the highest level that we want to Sadly, the attitude of many British CONTINUALLY keep the best talent – not lose out to people to India remains as detached competitor countries. DISCRIMINATED from reality as the government’s careless immigration policy. In a AGAINST IN BRITISH Indians should be first through the British Council report from 2015, IMMIGRATION POLICY, door amidst any policy change which looked at how 18-34-year-old AND WHILE I HAVE that allows students to come here Indians and Brits view each other, the ASKED FOR THE and work. India is the UK’s trading knowledge gap was apparent. Three- REASONS BEHIND partner, strategic ally and historic quarters of Indians said they knew a THIS IN THE HOUSE friend – it is a natural fit - while Britain great deal about the UK, compared to should be strengthening its ties to a just one in five Brits feeling they knew OF LORDS ON MANY rocket-fuelled economy and a society a great deal about India. OCCASIONS, I HAVE bursting with talent. The time for NEVER RECEIVED AN change is now if we want to rescue a This gap was reflected further ADEQUATE ANSWER. truly great global friendship. by 40 per cent of Indians saying Britain should take most pride in its educational institutions and 38 These perceptions matter. While Lord Bilimoria, the Founder per cent in its technology sector. historically the UK and India have & Chairman of Cobra Beer, Comparatively, equivalent Brits said been close – as the latter develops is President, UK Council for the legacy of Gandhi was India’s economically and its status grows on International Student Affairs greatest contribution to the world, the world stage, India will become far (UKCISA); Chancellor, University followed by its ‘history’. Indians look at more inclined to deal with those who of Birmingham; and Founding the UK and think to the future, Brits recognise its potential, rather than a Chairman of the UK India look at India and only see the past. nation which looks almost exclusively Business Council (UKIBC). to its past. With Germany readying www.indiaincgroup.com August 2018 13 INTERVIEW
YES Bank gears up to establish presence in UK
Rana Kapoor is the Managing Director and CEO of YES Bank, one of India’s leading private sector Banks. In this interview with ‘India Global Business’, he delves into the Bank’s plans to set up base in the UK, its wider international business development model and the increasingly digitised nature of India’s banking sector.
14 August 2018 INTERVIEW
hat is the timeline for the on this segment, and, will in fact renewable power generation in UK opening? present us with greater opportunity the country. to build deeper trade and investment WThe Representative Office in London ties between UK and India. During FY 2018, YES Bank has won will be inaugurated within the next several Awards on Global Platforms 12 months, which is in line with the Please list some major milestones such as the ‘Best Bank for SMEs in approval that YES Bank has received for the current financial year. India’ at the Asiamoney Best Banks from the Reserve Bank of India (RBI). Awards 2018. YES Bank is also currently in the YES Bank is the fourth-largest private process of seeking approvals from sector bank in India, and has been What is YES Bank’s message relevant UK regulatory authorities. one of the best performing banks around digital payments? in India across key parameters What does this mean for the Bank’s of growth, profitability and asset We believe that while India is going expansion plans? quality while gradually increasing digital, the economy has a strong market share. The bank’s consistent ecosystem and infrastructure to The opening of representative performance delivery can be emerge as a less-cash economy. offices in London and Singapore attributed to focused growth strategy The recent shortage of cash is not a is in continuation with YES Bank’s across retail, small and medium crisis but only a temporary mismatch international foray to expand services enterprises (SMEs) and corporate of supply confined to a few territories to the NRI population living in London businesses and thus increasing and has already been resolved to and Singapore through our flagship granularity while adhering to Prudent a large extent; restricted to certain Global Indian Banking product Risk Management Practices. states only and not pan India, as proposition, and to also be positive for opposed to the broader perception international business development. in the market.
This planned international expansion THE OPENING OF At YES Bank, we have pioneered comes on the back of YES Bank’s REPRESENTATIVE multiple digital payment innovations, first representative office in Abu OFFICES IN LONDON even for easing cash transactions. Dhabi, inaugurated in April 2015, and AND SINGAPORE IS IN Recently, we launched a card less the highly successful debut of IFSC and PIN-less Aadhaar-based ATM Banking Unit (IBU) at GIFT City, CONTINUATION WITH YES service in partnership with the Gandhinagar, launched in the BANK’S INTERNATIONAL PayNEARBY mobile application, same year. FORAY TO EXPAND which empowers thousands of SERVICES TO THE NRI retailers across the country to YES Bank’s IBU continues to be POPULATION LIVING IN become an Aadhaar ATM or Aadhaar the largest operational IBU, with Bank Branch for cash withdrawals a balance sheet size of over $2.5 LONDON AND SINGAPORE and deposits by a customer. With the billion, supported by the Bank’s innovative steps taken by the bank maiden MTN issue of $600 million in times of quick cash requirements, in 2018. We have been able to Further, YES Bank is diligently customers can reach out to their provide financial solutions to undertaking technology and digital nearest retailer and withdraw cash. international entities of Indian innovations to stay ahead of the Currently, our network extends to companies through our IBU. curve in evolving banking landscapes. 40,000 ATM touch points across Innovations such as API Banking, India. Through this initiative, we Is Brexit a worry as the Bank enters UPI payments and Blockchain have are including a sizeable population the UK? established the bank as a forerunner under the umbrella of instant digital in harnessing technology to enhance payments. London is universally recognised customer experience and deepen as one of the foremost international engagement while increasing What are your views on the financial centres globally, with over productivity and efficiency. banking sector reforms? $15 billion of bilateral trade with India. Also, the UK is a global wealth In the last three years (FY14 to The focus is currently on cases being management hub, and therefore FY17), YES Bank’s profit has grown addressed under the Insolvency & YES Bank’s London outreach will at a CAGR of 27 per cent to Rs 33.3 Bankruptcy Code (IBC), a much- complement our Asia strategy by billion. In FY 2018, YES Bank also needed reform which was brought in being the springboard for YES Bank’s announced the listing of its debut by the Government of India. network in the UK. $600-million MTN bond on INDIAINX, the largest ever debut made by While asset quality concerns giving Given our focus on serving the Indian any Indian bank on the index. The rise to overall risks in the banking diaspora in London, through the bank also forged an agreement with sector continue to loom large, the representative office, we believe that the European Investment Bank to decisive recapitalisation move by Brexit will not have major implications co-finance $400-million funding for the government could provide a www.indiaincgroup.com August 2018 15 INTERVIEW
INNOVATIONS SUCH AS API BANKING, UPI PAYMENTS AND BLOCKCHAIN HAVE ESTABLISHED THE BANK AS A FORERUNNER IN HARNESSING TECHNOLOGY much-needed facelift to private on the GST returns that they file. This aim to achieve a healthy retail loan investments for the economy to race is in addition to various education book – 40 per cent of our overall ahead. In the business of lending, programmes and digital enablers lending folio by 2020. Extensive time is of essence. The application of launched to ease organisations to growth of YES Bank in retail banking provisioning for companies referred operate post-GST implementation. will also be bolstered with enhanced to NCLT under IBC will help lenders Additionally, the Digital India initiative digital banking solutions for better maximise recoveries. has also helped the banking sector customer service; while we will also expand digital operations and further use emerging technology to reap Also, positive results have begun to enhance service to customers in back-end efficiencies that would result trickle down from bold policy moves remote areas too. The Government in better optimisation of costs.
taken by the current administration; of India has built an IndiaStack for We strongly believe that in order for instance, the pan-India rollout of Aadhar, allowing ecosystem players to successfully implement our plan the Goods & Services Tax (GST). like us to build frugal solutions on the it is necessary to develop and Owing to GST enabling greater platform and provide services even to manage talent to be able to better visibility i.e. a macro view of taxpayers the last-mile customer. face challenges of the future. In this and an insight into how they behave regard, we have not only forged and, of course, the expanding What are some of the bank’s future strong relationships with leading organised sector, has allowed expansion plans? technology and business schools the banking sector to innovate in India but have also embarked on products and services to help As the bank continues its robust on a journey to upskill our entire organisations, especially MSMEs, to growth in the next phase, our focus workforce with emerging technologies better adjust to the new tax regime. will be on growing YES Bank’s Retail and behavioural skill-sets to be Recently, YES Bank launched a Banking division, along with a strong ‘FutureReady’. lending programme for MSMEs based growth in the corporate segment. We
16 August 2018 Capital. Commitment. Community. Conscience.
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www.indiaincgroup.com www.wgcworld.com August 2018 17 NEWS IN BRIEF
Mixed bag for Recent initiatives, partnerships go hand in hand India-UK ties with visa worries.
Tech Mahindra in IT easier visas for Indian India-UK step up pact with UK university students scientific cooperation ayor of London Sadiq ndian software services firm Khan called on the UK ndia and the UK have resolved to Tech Mahindra announced a government to add India further intensify their cooperation new agreement with a British Mto the list of low-risk countries in the areas of science and Iuniversity to collaborate across offered a more simplified student Itechnology and global research various sectors, including smart visa application process, asserting programme on health. cities. that it is vital the country maintains its reputation for higher education In a biennial meet on Science and A memorandum of understanding excellence. Innovation Council between Science (MoU) was signed between Tech and Technology Minister Harsh Mahindra and the University of In a letter to UK Home Secretary Vardhan and UK’s Minister of State Salford at a Manchester-India Sajid Javid, the 47-year-old mayor for Science and Innovation, Sam Business Summit in Manchester. expressed his “deep concern” Gyimah, the two sides expressed Under the MoU, students from the at India being excluded from a satisfaction at the human impact that university will be able to get involved recently expanded list of countries existing cooperation through 600 with Tech Mahindra projects. from where overseas students projects supported by the Newton- can access a more streamlined Bhabha Partnership had brought in Ashish Pandey, Vice-president university application process. areas such as using technology to and Client Executive at Tech monitor maternal health and make Mahindra Salford, said key areas Khan stated: “It is vital that UK water safe. the MoU would cover includes maintains its reputation for higher tech transformation projects and education excellence. The number A statement by the British High creating connected experiences for of Indian students choosing to study Commission said: “They [ministers] smart cities using automation, the in the UK has declined significantly signalled their commitment to Internet of Things (IoT) as well as over the last decade. a deeper relationship by jointly research into virtual reality (VR) announcing four new awards worth and augmented reality (AR). “I’m urging him [Sajid Javid] to £4.8 million under the civil nuclear both add India to the scheme and energy programme and seven new Helen Marshall, Vice-Chancellor also to review the UK’s broader awards worth £10.8 million under of the University of Salford, said approach to attracting international Phase 2 of the global research the MoU reflects the key goal for student talent, including post-study programme on health.” the organisation, which is to work opportunities.” closely with industry to develop Gyimah said: “The UK believes in the the curriculum and ensure that A UK Home Office spokesperson power of research and development graduates are job ready when they said: “We are committed to a close to tackle global challenges and leave. relationship with India. This is improve people’s lives for the better. clearly seen by the fact that Indian India is the fastest rising research and She added: “We will also be looking nationals make-up around two-thirds innovation power in the world, and at research and other collaboration of all Tier 2 [work] visas issued by so I am excited by the huge potential opportunities. We have skills and the UK and we issue more skilled for enhanced collaboration as we expertise that can be shared to worker visas to Indian nationals than support high-quality, high-impact benefit both parties and society as to all other nationalities combined. research that changes lives.” a whole. I’m excited to see what this partnership brings in the coming “India also has the most UK Visa On his part, Vardhan said technology years.” Application Centres of any country cooperation is the key to the future in the world and we are determined and India and the UK should work London Mayor wants to continue our work to bring the UK on sustainable, affordable, and low and India closer together.” energy consumption technology.
18 August 2018 EYE ON BREXIT
Tata Steel strikes European deal to secure jobs by India Inc. Staff The joint venture with Thyssenkrupp will help address Indian market needs, according to the Indian steel giant.
he chairman of Tata Steel the needs of the Indian market,” acquisition of Bhushan Steel in welcomed the definitive Chandrasekaran told reporters. India, he indicated that Tata Steel agreement with German steel was negotiating another acquisition Tmajor Thyssenkrupp to create a new Addressing a question on what the in India as part of its focus on joint venture company as a “historic” new company, named Thyssenkrupp creating a “strong Indian platform” development that would strengthen Tata Steel BV, would mean for through Brownfield and Greenfield the steel industry across Europe Tata Steel employees in India, he opportunities. and India. described it as a “great development” for all employees. New deal N. Chandrasekaran was addressing Tata Steel’s new 50-50 joint venture a joint press conference with “We are structurally strong in India, with Thyssenkrupp involves a total Thyssenkrupp CEO Heinrich which offers tremendous opportunities workforce of 48,000 employees, Hiesinger in Brussels at the end of as a growing market. This JV creates spread across 34 sites, producing June to mark the creation of Europe’s an opportunity for us to create a about 21 million tons of steel a year second-largest steel giant in the good, strong and sustainable footprint with revenues of around €15 billion. form of the new JV company was in both geographies,” he said. As the second-largest European announced over the weekend. steel company, after Lakshmi N. Chandrasekaran also asserted Tata Mittal’s ArcelorMittal, the company “For Tata, this marks a significant Steel’s plans to “double down” in has forecast cost savings of between milestone in the history of Tata Steel India, where the company plans to £350 million to £440 million a year and the Tata Group. It strengthens increase its presence from 13 million as it becomes a “one balance sheet” and provides scale to our European tonnes to 25 million tonnes a year entity. operations, creates a strong steel capacity. enterprise and also helps the Indian “There is industrial logic and strategic operations to grow and address In reference to the company’s recent rationale behind this merger, which www.indiaincgroup.com August 2018 19 EYE ON BREXIT creates a new steel champion in The definitive agreement signed Tony Brady, National Officer for Europe…we are forming something between the two companies Unite, stressed that his union would great, which expresses our trust includes a “proper compensation” be seeking guarantees for jobs and in the successful future for the for a valuation gap between the investment for Tata Steel’s UK “world steel business in Europe,” said companies, which means that in case class” workforce. Thyssenkrupp CEO Hiesinger, before of an Initial Public Offering (IPO) of he stepped down from his post just the JV, Thyssenkrupp will receive “Those steelworkers have made great weeks later. a higher share of the proceeds, sacrifices in working to secure a reflecting an economic ratio of 55/45. future for Tata Steel,” he said. In a move that came as a surprise, Both companies stressed that the Ross Murdoch, National Officer for the company announced that Dr timing of the IPO is some way off, GMB, added: “We will continue to Hiesinger had asked the Supervisory as the initial focus would be on ensure jobs and investment remain Board of the company to end his kick-starting JV operations following the key underpinning priorities mandate as Chief Executive Officer the required regulatory approvals within any final joint venture, which of Thyssenkrupp AG “in mutual and “building credibility” of the new must equate to opportunities for our agreement”. company. members in the UK, particularly after the difficult and uncertain recent times Hiesinger said: “I take this step very IT STRENGTHENS AND they have faced.” consciously to enable a fundamental PROVIDES SCALE TO OUR discussion in the Supervisory Board EUROPEAN OPERATIONS, The local MP from the Port Talbot on the future of Thyssenkrupp.” area in Wales, Stephen Kinnock, also CREATES A STRONG welcomed the new JV announcement, A joint understanding of Board and STEEL ENTERPRISE calling for “sustained investment” in Supervisory Board on the strategic AND ALSO HELPS THE the region’s steel industry. direction of a company is a key pre- INDIAN OPERATIONS TO requisite for successfully leading a GROW AND ADDRESS THE “With Brexit looming large and company, he said. NEEDS OF THE INDIAN Trump recklessly spoiling for a trade war there are still all sorts of risks MARKET. He added: “The joint venture of our and challenges facing our industry. steel activities with Tata is the next By teaming up with Thyssenkrupp, significant step to turn Thyssenkrupp The merger has been widely Tata Steel has added strength and into a strong industrial company. We welcomed by workers’ unions in resilience to its recovery, but we must can be proud of what we achieved Britain as the best solution to ensure now be vigilant, to ensure that we until now. the long-term future of Tata Steel’s see full delivery on all the important UK operations. The Indian company commitments that have been made “For this, I would like to thank all owns the UK’s largest steelworks in by all parties today,” the Labour party employees. They are the most Port Talbot, South Wales, employing MP, who has been part of crisis talks valuable capital of Thyssenkrupp.” thousands of staff. since Tata Steel had announced major changes to its European Brexit impact UK operations operations, said in a statement. The JV will now undergo routine “Steelworkers have fought hard clearance process, with the new to ensure the future of British The new company’s complete company board set to be announced steelmaking. As part of this joint production network is to be reviewed within a few weeks. Both entities venture, we have secured significant starting in 2020, with the aim of expressed confidence in being able to investment across Tata Steel’s UK integrating and optimising the navigate the upheavals in store as a business, including a repair of Port production strategy for the entire joint result of ongoing Brexit negotiations Talbot’s blast furnace number five, venture. and US tariff wars, with Hiesinger which could see it produce steel until expressing hope that a free market at least 2026,” said Roy Rickhuss, “All sides of the JV will have context will be maintained for the General Secretary of the union appropriate support to prosper and steel industry. Community. progress under the new enterprise,” said Koushik Chatterjee, Executive “Having integrated plants across “With a commitment to avoid Director and Chief Financial Officer of Europe gives us some flexibility…but compulsory redundancies until Tata Steel. we will hope for free flow,” he October 2026, and the first £200 had said. million of any operating profit being Until the JV gets all its clearances, invested back in the business, this Thyssenkrupp Steel Europe and “We need to wait and see what joint venture has the potential to Tata Steel in Europe still operate the outcome of Brexit is,” added safeguard jobs and steelmaking for a as separate companies and as Chandrasekaran. generation,” he said. competitors.
20 August 2018 www.indiaincgroup.com August 2018 21 ANALYSIS
India reaped a bumper harvest of jobs in 2017-18 by India Inc. Staff
A new study by leading Indian economists fact-checks some figures on India’s youth entering the job market every year.
he rumbling will grow in Jobs survey were afraid to ask’ very credibly intensity as the Lok Sabha As proof, they cite a CMIE-BSE debunks this myth about alleged elections draw nearer. The survey that showed employment in job losses and shows, with sound Tnow-united-now-fragmented Indian January-April 2017 at 405 million; methodological rigour that, instead, a Opposition is looking around the figure for January-April 2018 was record 12.8 million jobs were created desperately for issues to corner 401.7 million, a fall of 3.3 million, the in 2017-18. Prime Minister Narendra Modi and his single-largest jobs loss recorded in government with. any one-year period since the survey The promise was launched two years ago. But first, let us look at the alleged Demonetisation, which the Opposition promise by Modi to create 10 million thought was its trump card, actually Their charge: Modi has not only failed jobs a year. A Google search with delivered a landslide for the BJP to keep his promise of providing 10 “Modi” and “10 million jobs” threw up a in Uttar Pradesh. The Goods and million jobs a year, he has actually number of articles on the subject, but Services Tax (GST), which Congress presided over a period when jobs not one of them actually quoted the leader Rahul Gandhi likened to an actually shrank in the country. Prime Minister making that promise. iconic Bollywood villain, has begun to stabilise and likely to deliver an This argument, they’re certain, will The closest was a report on an additional revenue bonanza of $15 resonate with the Indian youth, who election rally in Agra in the run-up billion current the full financial year. constitute about two-thirds of the to the 2014 Lok Sabha elections in electorate and propel them to power which Modi promised to create 10 So, the Congress and other parties in New Delhi. million jobs for the country’s youth. opposed to Modi and his government There was no “… a year” after that have latched on to reports of alleged A study by noted economist Dr Surjit number. massive job losses in the Indian Bhalla and T. Das titled ‘All you wanted economy. to know about jobs in India — but So, it appears from a plain reading
22 August 2018 ANALYSIS
The QES covers less than 5 per cent Road to reforms of India’s total work force (units with A caveat will be in order here: at least 10 workers). If the increase in the data released by the EPFO is jobs is extrapolated to the entire work provisional and will be updated in force of more than 350 million, the the course of the year as updating number of new jobs created comes to records of existing and former about nine million. members is a continuous process. EPFO also clarified that its data This figure does not include the may include those with temporary employment generated in the employment. construction sector, which grew at 5.8 per cent, the largest annual The EPFO data, which effectively expansion in 20 years. The sector punctured the carefully constructed employs a very large number of story of gloom being spread by the workers and its high growth rate is Opposition in India was met with estimated to have added between 1.7 virulent condemnation and vilification million and 3 million jobs during the by a section of the media. year under review. Additional numbers recorded by the These trends are corroborated by EPFO merely show the formalisation payroll data released by retirement of the Indian economy, they claimed. body Employees Provident Fund In other words, their version of the Organisation (EPFO), which is story goes, it merely marks fresh mandated to manage the social registrations of hitherto informal security funds of organised/semi- sector workers and so, does not organised sector workers that shows constitute job growth. more than 4.4 million jobs were created between September 2017 This argument, ironically, proves and May 2018. Though the data for the government’s case that difficult this nine-month period is strictly not and painful structural reforms such comparable with the results arrived as demonetisation and the launch at by Bhalla and Das as they related of GST have actually brought the to two different, albeit partially shadow economy into the open, but of the publicly available material overlapping, periods, the direction of that’s another story for another day. on the subject that Gandhi and the conclusions are exactly the same. the Opposition are twisting facts to But this line of reasoning, though create a misleading narrative about seemingly logical, does not stand the Prime Minister and his electoral up to detailed scrutiny. The first-ever promises. A STUDY BY NOTED payroll-based estimate of employment ECONOMIST DR SURJIT change in India, carried out by But elections are often won and lost BHALLA AND T. DAS Soumya Kanti Ghosh, Group Chief based on perceptions and it must Economic Advisor at State Bank of be admitted that the Opposition has TITLED ‘ALL YOU WANTED India, India’s largest commercial succeeded in creating a perception TO KNOW ABOUT JOBS bank, and Professor Pulak Ghosh of that Modi did make such a promise. IN INDIA — BUT WERE the Indian Institute of Management, The only counter narrative that will AFRAID TO ASK’ VERY Bangalore, shows that at least 10 hold up against this perception is CREDIBLY DEBUNKS million jobs were created in 2017-18. actual job creation. There is a large body of evidence to prove that this THIS MYTH ABOUT This study, by two highly respected has actually happened. ALLEGED JOB LOSSES and well-reputed professionals, has taken elaborate care to weed out Facts & figures the accretion to the EPFO numbers Dr Bhalla and his co-author take the Data released recently by the EPFO from the process of formalisation of Quarterly Employment Survey (QES), reveals that new member enrolment the Indian economy that is currently which is conducted only among in May, at 743,608, touched the underway. labour-intensive units, as their base highest levels over the last eight material. The survey conducted in months. Within this number, more The Bhalla and Das study another October 2017 showed 0.507 million than 250,000 new members were interesting finding. It says that it is additional jobs in this industry sub- in the 18-21 age group and more erroneous to say, as the media, group of 20 million. That’s an increase than 190,000 members in the 22-25 including ‘India Global Business’, has of 2.53 per cent. bracket. been, that 10-14 million youngsters are entering the Indian job market www.indiaincgroup.com August 2018 23 ANALYSIS SUBSCRIBE NOW AT DIFFICULT AND PAINFUL STRUCTURAL REFORMS SUCH AS DEMONETISATION AND THE LAUNCH OF GST HAVE ACTUALLY BROUGHT THE SHADOW ECONOMY INTO indiaincgroup.com THE OPEN. every year. The figure that, they say, urban India, has disbursed more semi-skilled and unskilled workers reflects reality better is 7-8 million. than 10 million such loans. It will be as well. fair to assume that each such loan The study also found that the 15-24 facilitated at least one additional By juxtaposing the study by Bhalla The home of India-related foreign direct investment age bracket is expected to expand by livelihood. That alone should add up & Das and the EPFO data and the only 2.5 million from 236.2 million in to a massive number, albeit mostly in study on payrolls by Ghosh & Ghosh Up-to-date insight into India’s accelerating globalisation story 2017 to 238.7 million in 2022. the unorganised informal sector of the and given the solid growth figures economy. being posted by a number of sectors, and the role India is playing on the global stage. Livelihood generation it will be safe to conclude that, There is other anecdotal evidence Then, labour intensive sectors such notwithstanding what the purveyors that nudges one to reach the same as logistics, real estate and road of doom are saying, India reaped a conclusion. The MUDRA scheme, building are growing at a rapid pace. bumper harvest in terms of job growth which provides small loans to micro These are large magnets for 2017-18. entrepreneurs in both rural and employment and absorb millions of Incisive Content Engaging Leaders Impactful Events
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Incisive Content Engaging Leaders Impactful Events
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www.indiaincgroup.com @IndiaIncorp /indiaincorporated /company/india-incAugust 2018 25 GUEST COLUMN Engaging the youth for a vibrant Commonwealth by Layne Robinson
An expert explains how the Youth Leadership Training Programme is giving the Commonwealth’s young leaders an understanding of the Commonwealth, its values and principles.
For more than 45 years recognise the appointment of HRH • mainstream youth priorities into our Commonwealth Youth the Duke of Sussex, Prince Harry, as national development policies and Programme has been Commonwealth Youth Ambassador, plans; “pioneering the empowerment of and to round off a week of youth • promote the participation of young young people and the development leadership training. people at all levels of decision of youth leadership. The multiple making; layers and interlocking threads of In April 2018, the Commonwealth • the need to create meaningful Commonwealth connectivity continue Heads of Government reiterated the employment opportunities for the to be woven into the fabric of our importance of youth empowerment, Commonwealth’s growing youth nations, creating a stronger and more and laid out clear pledges to populations. resilient Commonwealth.” this effect. The agreement in the communique demonstrated the The Commonwealth Youth Council These were the words of the Commonwealth’s unwavering (CYC) and the Youth thematic Commonwealth Secretary-General commitment to youth engagement networks offer a framework to Patricia Scotland to the young and the significance on young people support young people’s engagement people gathered at Marlborough in working towards a fairer, more in decision making and create an House in London, headquarters of prosperous, sustainable and secure environment for their contribution the Commonwealth Secretariat. The future. Leaders committed to: to the Commonwealth’s inclusive gathering aimed to celebrate and development agenda. They further
26 August 2018 GUEST COLUMN give the institutional base and the Commonwealth could contribute through a trade agreement amongst representative voice to bridge the to help it happen. all 53 Commonwealth countries; gap between young people and strengthening access to information their leaders and advocate for The ‘Your Commonwealth’ Youth through capacity-building toolkits greater inclusion of young people Challenge participants heard an available to all young people involved at all levels of policy planning and inspiring discussion from journalist in youth networks; and setting quotas implementation. Shivvy Jervis and author Mark for young people in key institutions Stevenson on what the future might such as parliaments. The Commonwealth Youth look like. They discussed what Programme (CYP) has been working innovation really means, the role These ideas could transform the for over 40 years to further strengthen of technology both now and in the Commonwealth because, at their these youth institutional frameworks, future, and how meaningful change heart, they provide opportunities for ensuring young people are equipped can happen. the Commonwealth’s one billion plus and empowered to engage with youth generation. their leaders and are advocates for grassroots recognition and support Tijani Christian, Chair of the for their capabilities as leaders and A COMING TOGETHER Commonwealth Youth Council, partners in development. UNDER THE AEGIS OF concluded by proclaiming to Prince THE COMMONWEALTH Harry, the Duke of Sussex and It is in light of this that the Youth AND SECURING the Commonwealth’s new youth Leadership Training workshop MUTUALLY BENEFICIAL ambassador: “We, young people, was planned in July 2018 at the have a unique perspective about what TRADING CONCESSIONS Commonwealth Secretariat’s is needed to create a better future in headquarters in London. The COULD EASE THE the Commonwealth. I hope that the Commonwealth is committed to PRESSURE AND OPEN Commonwealth doesn’t just occupy providing the Commonwealth Youth UP NEW OPPORTUNITIES your mind but takes a place in your Council and the other Commonwealth FOR ECONOMIC heart, too.” Youth Networks with technical and EXPANSION FOR ALL THE administrative support in their years 53 MEMBER COUNTRIES. Following the Challenge Event, of development. an evening reception was held with the Secretary-General of the The Youth Leadership Commonwealth, Patricia Scotland, Training Programme gave the The young people then worked in their Royal Highnesses the Duke Commonwealth’s young leaders an groups to make elevator pitches and Duchess of Sussex and many understanding of the Commonwealth, about their proposed innovations Commonwealth Commissioners. its values and principles. The and received feedback from a panel youth leaders also received made up of Uganda’s Minister of It was the Duke’s first engagement as technical training on leadership and State for Youth and Children’s Affairs, Commonwealth Youth Ambassador personal development, trusteeship, Rt. Hon. Florence Nakiwala Kiyingi, since he was appointed to the role by partnerships and resource futurist and writer Mark Stevenson, the Queen earlier this year during the mobilisation and strategic planning. Commonwealth Youth Council Chair Commonwealth Youth Forum. They learned about the role of media Tijani Christian and Director of the and communications as soft skills that Commonwealth Foundation, Vijay Speaking to the gathering of more enhance the capacity of youth leaders Krishnarayan. than one hundred young people and to be effective in their advocacy work. Commonwealth officials, he said: “If Pitches from the young people there is one group of young people Following this intensive Youth covered topics such as strengthening who can rise to the challenge of Leadership Training Programme, an governance and accountability; solving the world’s greatest problems additional one hundred young people educating young people about – I know we’ve come to the right representing the High Commissions important youth issues through place!” He called on youth to be in London and Commonwealth digital communications; and creating champions for their communities, affiliated organisations came to platforms so young people can be families, countries, and for their the Commonwealth headquarters better-represented in policymaking. Commonwealth. to participate in the ‘Your Pitches included ideas like allocating Commonwealth’ Youth Challenge a seat for youth at the Commonwealth He added: “My job as your event. Their challenge was to Heads of Government Meeting Ambassador is to listen and learn envisage how the Commonwealth and encouraging National Youth from you, to amplify your voices and could change for the better by 2040, Councils. Other ideas were about to bring your ideas to the attention of and what young people from across improving employment opportunities decision makers. It only seems right
www.indiaincgroup.com August 2018 27 GUEST COLUMN
THE COMMONWEALTH IS COMMITTED TO PROVIDING THE COMMONWEALTH YOUTH COUNCIL AND THE OTHER COMMONWEALTH YOUTH NETWORKS WITH TECHNICAL AND ADMINISTRATIVE SUPPORT IN THEIR YEARS OF DEVELOPMENT. that as the youth of today, you should Commonwealth Youth Council leader, and the Duchess’ commitments play a part in shaping the policies Jamaican Tijani Christian, who to amplifying the youth voice and which will make the future better for spoke during the evening reception engaging with them across the everyone.” summarised it well: “We are all here Commonwealth paired with strong, representing the diversity of the enabled youth networks reaching For us at the Commonwealth Commonwealth: as the Youth Council, across the Commonwealth mean that Secretariat, the Duke’s appointment Youth Networks, High Commissions, creating a better, common future by as Commonwealth Youth Ambassador Scholars and Commonwealth 2040 is within reach. represents an invaluable opportunity organisations. In you, we see the to work alongside him to amplify hope for the Commonwealth and young people’s voices and bring their the world. Layne Robinson is the Head of ideas to the attention of decision and Social Policy Development at the policymakers. His appointment is a “The power and importance of your Commonwealth Secretariat. He point of inspiration and opportunity networks and your institutions cannot has been with the Secretariat for to highlight the importance of work be overestimated, we are building more than 10 years, working as young people of the Commonwealth bridges across the Commonwealth, both the Head of Programmes are doing. We look forward to the dealing with the most pressing and at the Youth Division and the Duke and Duchess’ upcoming trip vital issues facing our world. Today, Programme Officer for Youth to the Pacific countries of Australia, we have put our heads together to Development and Empowerment. Fiji, New Zealand and Tonga and the think about the innovative plans that Layne is from Jamaica and opportunity for young people from could create a better future in 2040.” studied at the University of the these Commonwealth countries to West Indies. share their ideas with them. The Duke’s appointment, and his
28 August 2018 ‘100 UK India’ is an exclusive list of key influencers that enrich and make the UK-India relationship tick. The list is a result of painstaking research by our expert editorial team and profiles influential people in business, policy, the arts, culture and media.
Contact us : For Business Development & Advertising Opportunities Email: [email protected] www.indiaincgroup.com August 2018 29 THE SMALL PRINT Start-ups will define the future of employment in India THEby Param Shah SMALL PRINT In this regular column, our industry expert weighs up the impact of start-ups on jobs.
here has been an ongoing job growth, policy makers, industry start-ups are high-quality that have discussion on whether and other stakeholders should been created locally. The Indian technology creates jobs or kills appreciate the astounding effect of unicorns such as Flipkart, redBus and THE SMALLTthem. With the surge in the number job creation in the first year of a Snapdeal together employ more than PRINT of tech-based start-ups on the rise, start-up’s life. 7,000 people. According to a Nasscom there have been discussions on the report, start-ups are expected to impact start-ups make on jobs. Globally, all major start-up create 250,000 jobs in India by 2020. ecosystems have reported huge Research has time and again shown number of jobs being created by start- The average annual salaries offered that technology has net-net created ups in the economy. The Enterprise by start-ups (less than one year) far more jobs than it has destroyed. A Research Centre had reported that range between Rs 2 lakh to Rs 5 study by Deloitte drew on data going start-ups created a million jobs in lakh. These increase exponentially back to 1871 in England & Wales and the UK between 2014 and 2015. The and touch about Rs 12 lakh or higher found that technology has been a job- Australian government’s Department as the start-up grows. These are not creating machine. The conclusions of Industry, Innovation and Science as attractive packages as compared drawn in the report are resoundingly reported that start-ups and early- to the large corporates, however, positive. It concludes that rather stage companies generated nearly the challenges and dynamism in the than destroying jobs, technology has all the 1.6 million new jobs created start-up job attracts the millennials. been a “great job-creating machine”. in Australia from 2003 to 2014. The But to attract and retain more talented It further concluded that if we want US Census Bureau in its Business start-ups and most importantly THE SMALL to createPRINT an economy that is a job Dynamics Statistics stated that start- ecosystem stakeholders like investors, machine, we are going to have to ups created over 2 million jobs in the government will have to find an have more business start-ups. 2017. Many other start-up ecosystems innovative way to match the salaries globally have over the last few years with the market standards. Research suggests that start-ups are reported substantial contribution responsible for all net job creation of start-ups in job creation in the While start-ups do come with their during most years, while existing economy. own set of risks and challenges and firms (aged one year and older) are their success rate of 10 per cent usually net job losers. To be fair, start- In India, the situation is equally remains a huge concern, one cannot ups have a definitional advantage encouraging. Industry experts deny the attraction they hold. Start- because they can´t lose jobs and estimate that since 2005, start-ups ups are creating and will continue to some of their created jobs will surely have created more than 100,000 create more jobs, but they are not be lost by the time they reach year direct and over 300,000 indirect jobs great-paying ones yet. If things start one. But in terms of the life-cycle of in India. The jobs created by these to turn around a bit, rising pay at THE SMALL30 August 2018 PRINT THE SMALL PRINT
TO ATTRACT AND RETAIN MORE TALENTED START-UPS AND MOST IMPORTANTLY ECOSYSTEM STAKEHOLDERS LIKE INVESTORS, THE GOVERNMENT WILL HAVE TO FIND AN INNOVATIVE WAY TO MATCH THE SALARIES WITH THE MARKET STANDARDS. start-ups should be next. user-centric design is designed maturity (‘Emerging, ‘Scaling’, to bring speed, ease of use ‘Mature’), as well as its strengths and India Calling… and efficiency. areas of focus. In the frenetic world of technological They have developed robotic process innovation, corporations are being automation for the intelligence Efficacy of score is strengthened disrupted and increasingly at risk industry that can automate an by peer group benchmarking. The of being outpaced by their new analyst’s role, by creating on team believes this will become the emerging competitors – tech start- demand automated reports with new industry standard in scoring ups. Nearly 50 per cent of the current relevant digital solutions. Their and identifying high growth start-ups S&P 500 will be replaced over the mission is to “discover” the most and disruptors. This system means next 10 years, and the average innovative and disruptive start-ups, that the start-ups are scored and lifespan of an S&P500 company may globally, that will accelerate the digital profiled fairly, based on their product be as little as 12 years by 2027. transformation and business growth innovation and other merits rather of large corporations. than as a result of social and industry Although many corporations have network connections or their financial begun to work with start-ups, senior status alone. executives still have some way to go in navigating the start-up eco-system, In India, GrowthEnabler Pii have and realising the real benefits. signed an MoU with the Government of Karnataka to foster an environment In the India Calling series this month, of support for start-up companies we review Growth Enabler Pii, a in the state. Through their platform “Start-up for Start-ups”. Founded by they will showcase start-ups from ex-Gartner leaders Rajeev Banduni Karnataka to global Fortune 500 and Aftab Malhotra, GrowthEnabler companies and for investors who are have developed an AI-enabled keen to tap into the Bengaluru start- platform that connects corporations up ecosystem. with start-ups whose digital solutions match their business priorities and The success of innovative start-ups Other than GrowthEnabler Pii’s needs. It is called GrowthEnabler Pii is at the heart of GrowthEnabler own services, the co-founders also (Personalised Intelligence Interface). Pii’s business. They offer visibility to lead the Tech London Advocates number of fast-growing tech start- (TLA) India. TLA India is the Indian GrowthEnabler Pii serves two core ups, who are seeking new clients, chapter of Tech London Advocates, user groups: Corporate business investment and an opportunity to a network of more than 6,000 tech leaders and Tech Start-ups. They collaborate and partner with large leaders, entrepreneurs and experts in facilitate senior business leaders organisations. Around 1.78 million London, across the UK and in over 50 and their teams to: tech start-ups enter the market each countries worldwide. TLA India strives · Identify, watch, track and year. With GrowthEnabler Pii, start- to connect the Indian and UK tech connect with relevant digital up companies have an opportunity ecosystems to find ways to synergise solutions companies, from a to get “discovered” by potential and collaborate across start-ups, community of over 525K via clients around the world, giving universities, and large companies and the platform, making it easy opportunity for commercialisation and accelerate global growth. to shortlist the most relevant global expansion. Start-up business solutions. profiles within the platform are · Access intelligence and digital divided into five categories – Product Dr Param Shah is Director – UK, solutions from over 15 different & Innovation, Financial Strength, Federation of Indian Chambers tech industries, including Business Model, Leadership Team of Commerce & Industry (FICCI). FinTech, HealthTech, AR, VR, and Media & Branding. Information IoT, cyber security, Robotics about each start-up is passed and more. through their proprietary algorithms *The views expressed herein constitute the sole · Meet innovation objectives to generate a score based on prerogative of the author. They neither imply nor suggest the orientation, views, current thinking using a fast, collaborative, and 60 parameters: this provides an or position of FICCI. FICCI is not responsible for digital route. The platform’s indication of start-up’s stage of the accuracy of any of the information supplied by the author. www.indiaincgroup.com August 2018 31 HOTSPOT
Poland’s promise for investors from India by Ada Dyndo
A Polish trade expert analyses the various factors and initiatives providing a boost to investment cooperation between Poland and India. n 2016, the Polish government revised the approach to international and HSBC indicates that 92 per cent deemed India as one of Poland’s trade towards diversification of of foreign investors are glad they topmost prospective export international trade. This change could entered the Polish market and would Imarkets. Being fully aware of India’s definitely be considered as a new do so again. Since Poland’s economy potential, Polish Investment and chapter in the Polish-Indian economic is stable, the world’s largest credit Trade Agency (PAIH) has decided relations. rating agencies have upgraded their to launch one of its Foreign Trade forecasts in terms of the Polish GDP Offices in Mumbai, in the second As a trading partner for India, Poland growth in 2018. half of 2018. This decision aims to represents an indefinite business strengthen the economic relations potential. It is the sixth most populous Moreover, Poland is the only country between two countries and allows European Union country and the in Europe which did not get affected Indian entrepreneurs to discover what largest trade partner and export by the global financial crisis in Poland has to offer. destination in the Central European 2008 and avoided the recession region. EY’s European Attractiveness that gripped many European Union More investment cooperation and Survey from 2017 named Poland member-states. Poland could draw more support programs, such as Go “the investment magnet” of the EU even more foreign investments, as India, have been already implemented region due to its strategic location, it has a great allocation of the EU by the Polish government over the well-established fundamentals of a funds, especially in order to develop course of last two years to boost free market economy, a system of IT projects. bilateral economic ties. Regarding effective public incentives and mature that, 13 out of 15 major Polish export services market. Additionally, the Even though Poland is more destinations included European research conducted in 2017 by Polish expensive than India, it still remains Union member states. In the last two Investment and Trade Agency (PAIH) cheaper than most of the western years, however, the Polish authorities in cooperation with Grant Thornton European countries, while the quality
32 August 2018 HOTSPOT of services remains equal, or in coal in industry and power generation. is one of the most crucial elements of certain cases, such as banking Mining has been named by Grzegorz the Agency’s new strategy”, Wojciech sector - even higher. Furthermore, Tobiszowski, the Polish secretary of Fedko, deputy president of PAIH due to its central location, Poland state in the Ministry of Energy, as responsible for exports support, says. is often considered a natural trade one of the main fields of Polish-Indian “The offices will be operating in the partner for international companies cooperation. India is also keen on countries where Polish companies and a gateway towards the rest of ´ the continent.
According to the Polish Agency for Enterprise Development (PARP), there are over 1.9 million companies operating in Poland, the vast majority of which are micro, small and medium companies (99.8 per cent). The share of SMEs in generating GDP in recent years has been steadily growing and according to the latest available data exceeded 50 per cent. As a result of the economic growth, Polish entrepreneurs are constantly looking for new partners beyond their closest European neighbourhood. There are several especially prospective sectors for economic cooperation between Poland and India: energy and mining, ICT, BPO services, food processing know-how and machinery, agriculture equipment, health industry, (medical equipment in particular), and developing its mining industry, and have been already active as well as furniture industry. Poland offers excellent technology, in the ones with the biggest business machinery and experts. opportunities for our entrepreneurs.” Indian investments in Poland are Mumbai-based trade office is valued at over $3 billion and include to provide Polish exporters and companies such as ArcelorMittal, EY’S EUROPEAN investors who look for new business Videocon, Escorts, Strides Arcolab, ATTRACTIVENESS SURVEY opportunities in India with support Reliance Industries, Ranbaxy, Essel FROM 2017 NAMED POLAND and will attract Indian investors into Propack, KPIT Cummins, Zensar the Polish market. The office will also Technologies Ltd, Tata Consultancy “THE INVESTMENT MAGNET” offer consultancy and practical tips Services, HCL Technologies Ltd, OF THE EU REGION DUE TO within the Go India governmental Infosys and Wipro, Jindal Stainless, ITS STRATEGIC LOCATION, project. The Mumbai-based PAIH Berger Paints India, UFLEX and WELL-ESTABLISHED trade office will be not only an Glenmark Pharmaceuticals, Rishab FUNDAMENTALS OF A information centre, but a proactive Instruments (acquired Lumel) and FREE MARKET ECONOMY, consulting partner helping Polish CRISIL. Polish companies that A SYSTEM OF EFFECTIVE companies to take first steps into the operate in India include Torunskie Indian market. Zaklady Materialow Opatrunkowych PUBLIC INCENTIVES AND (TZMO) in Dindigul (manufacturing MATURE SERVICES MARKET. With such activities already taking hygiene and sanitary products), place, and more to come in the Can-Pack Poland in Aurangabad pipeline, the future holds great (manufacturing metal packaging), Regarding the business potential prospects for a long-term fruitful Geofizyka Torun, Famur Group, in India, PAIH will be launching Polish-Indian collaboration. Solaris (eco buses) and Ekolog its trade office in Mumbai in the (waste to energy). Total Polish second half of 2018. The Agency is Ada Dyndo is the Head of the investment is about $600 million. the main institution responsible for Mumbai-based trade office of promotion and facilitation of foreign the Polish Investment and Trade Furthermore, both countries are investment and the Polish exports. Agency and a PhD candidate in seeking to work closer together “We are creating a comprehensive Political Science at University of especially in the field of eco-friendly support system for the Polish exports. Warsaw. mining technologies and the use of Establishing the Foreign Trade Offices www.indiaincgroup.com August 2018 33 THE BIG PICTURE Measuring the true impact of soft power THEby Gareth Price BIG PICTURE The UK’s high score on a latest global ranking contrasts with India’s poor performance on the soft power scales.
oft power is a contested term, lagging behind countries including to the methodology – for one, India’s in terms of what it means, how Thailand and Malaysia. large population weighs against it. it should be measured and how As in many fields relating to India, THE BIGSbeneficial it may be for a country. On the one hand this is surprisingPICTURE – the average may make little sense. That said, it does seem intuitive more than many countries, India is But if one is to make international that cultural factors along with the defined by its soft power, particularly comparisons, the average is often the general attractiveness of a country’s as being the birthplace of several best there is. political system should play a role in of the world’s religions. Further, a country’s standing, beyond simply and putting its relationship with Not that long ago, external economic and military might. Pakistan to one side, for decades perceptions of India may well have it has emphasised its absence been synonymous with poverty and But the question of how to measure of hard power and policy of non- exoticism. But the changes which it is difficult. For the past few years, interference in the internal affairs of India has under-gone over the past Portland Communication has other countries. As a keen advocate couple of decades, resulting in the compiled a ranking of soft power, of decolonisation, and opponent of recent announcement that India using a range of data points, apartheid, India may have expected now has less people in poverty reinforced by large-scale polling, to receive greater acknowledgement than Nigeria, do not seem to have to assess political values and of its past positions. generated international recognition. governance to rate the attractiveness This may be because of the news of the political system. Counter- “agenda”. News from India reported THE BIG PICTUREintuitively, from this vantage point at AS A KEEN ADVOCATE OF internationally is rarely good. This least, the UK came top in 2018, owing DECOLONISATION, AND is not because of any particular its success more to its universities OPPONENT OF APARTHEID, anti-Indian conspiracy but simply than its current political shenanigans. because, of late, India has made INDIA MAY HAVE EXPECTED more headlines for topics such as But what is also clear from the TO RECEIVE GREATER corruption and rape rather than survey is that India performs poorly, ACKNOWLEDGEMENT OF information technology. to be kind. In part this reflects the ITS PAST POSITIONS. data points used – if one were (not As Jaishankar also points out: “India unreasonably) to give a higher rates badly on any measure of state- weighting, for instance, to culinary But as the commentary regarding driven cultural diffusion rather than exports, India’s stock would clearly India, by Dhruva Jaishankar from the more organic and natural private rise, substantially. But as it is, of ten Brookings Institute, points out, the sector and citizen-led efforts”. India’s countries surveyed in Asia, India tops picture is more mixed. In part, as government has rarely engaged just Indonesia and the Philippines, Jaishankar points out, this does relate effectively in terms of cultural THE BIG PICTURE34 August 2018 THE BIG PICTURE
UK-India Year of Culture 2017 diffusion. Yoga, Bollywood and Indian are attractive to others, it seems safe the importance of continued reform cuisine have successfully spread to say that foreign investment would of governance. It matters in itself, around large parts of the world be more likely to accrue. because better governance means without government assistance. that things work better. But it matters It may be challenging for India to – particularly for a country like India – “game the system” with this particular because it means the country is more assessment of soft power, which attractive, and that in turn means THE SOFT POWER measures a range of issues which more investment, which means more INDEX DOES UNDERLINE are widely acknowledged to be jobs and the delivery of desired, THE IMPORTANCE OF challenges for India – government higher, rates of economic growth. CONTINUED REFORM OF effectiveness; diplomatic resources While the methodology adopted for GOVERNANCE. and ease of doing business. Prime this survey can certainly be critiqued, Minister Narendra Modi recently the broad brush inference may well launched “Study in India”. The number be that India is not as attractive as of foreign students in India, at around it thinks itself to be, or needs to be Should India be concerned? Possibly 50,000 is low, and there is vast should its economic aspirations yes. The government’s economic scope to increase this, particularly be met. objectives – obviously “Make in for other students in South Asia. India” requires increasing foreign However, increased investment in As noted by one Professor Rawnsley: investment. Of course, firms base universities (whether by the state or “soft power is a resource, not an investment decisions on a range of more likely through the acceptance instrument”. It is the result of the factors, most of which may well be of foreign investment) is likely to be right policies having been taken – economic. But soft power equates, a prerequisite. Unsurprisingly, India rather than something that can be more generally, to the overall performs well in relation to constructed in itself. Were India’s soft attractiveness of a country. Were India digital issues. power to increase, a virtuous circle to project more “soft power”, to be a would be there for the taking. country whose values and systems The soft power index does underline www.indiaincgroup.com August 2018 35 COUNTRY FOCUS
Notwithstanding an eight-year-old trade India-Korea: A agreement, India and South Korea renewed push bilateral trade has been underwhelming. by India Inc. Staff A fresh attempt is being made to resurrect it.
n July 9, South Korean of mobile phones at the factory will outside Korea. Another plant has electronics giant Samsung be exported. The fresh Rs 4,916 since been added at the same site made a big splash when it investment in it would also double as Hyundai emerged as the second Oinaugurated the world’s largest mobile refrigeration production to 3 million largest car maker in the domestic manufacturing facility in Noida, a units per annum. market. Today, it makes over 700,000 satellite town of New Delhi. units in India with plans to expand it “Today is an important day in making by another 50,000 units by next year. With Indian Prime Minister Narendra India a manufacturing hub. The Modi and South Korean President investment of Rs 5,000 crore [$735 In addition, there are 603 large and Moon Jae-in meeting in tow, the new million] by Samsung will strengthen small Korean firms, which have 35-acre facility that takes the Korean India-South Korea relations,” Prime offices in India. From the Indian side, firm’s production capacity to 120 Minister Modi said on the day. “Make investments in Korea amount to million units per annum is a statement in India initiative is getting support nearly $3 billion. Indian companies of the intent of India-Korea trade from all across the world. India has have been active players in the relations. become number 2 in mobile mergers and acquisition space phone manufacturing.” in Korea. Novelis, a Hindalco The Noida plant set up in 1996 is subsidiary, acquired a Korean Samsung’s first of two manufacturing Often dwarfed when compared to aluminium company by investing units in India. It started with Indo-Japanese trade ties, Korean about $600 million. Mahindra & the manufacture of televisions companies like LG and Hyundai Mahindra acquired a majority stake back in 1997, and mobile phone besides Samsung have become in SsangYong Motors, the country’s manufacturing unit was added in household names in India over 4th largest auto manufacturer, in 2005. By 2012, Samsung had become the last two decades. In 1998 March 2011, with an investment the market leader in mobile phones in when Hyundai ventured into of about $360 million. Tata Motors the country. India, its 300,000 units factory in acquired Daewoo Commercial Sriperumbudur on the outskirts of Vehicle Company for $102 million in Over 30 per cent of the production Chennai was its first overseas plant March 2004. Other Indian companies
36 August 2018 COUNTRY FOCUS present in India include IT majors, hurdles, bad luck and local politics. of Korea. According to Statistics Indian Overseas Bank, State Bank of It also is an apt reflection of bilateral Korea, Indian exports and imports to India etc. ties between the two nations. Korea grew by 26 per cent and 30.1 per cent respectively in the last fiscal. The mismatch has seen trade deficit grow at a steady clip over the years. “When we decided to invest in India in 1998, it was a big risk. We were unknown entities and for us India Partly the reason for this is what India was an unknown territory as well.” exports and imports from Korea. Y.K. Koo, Major items of what is sent from here Managing Director, Hyundai Motor India includes mineral fuels/oil distillates (mainly naphtha), cereals, iron and steel. Basic materials comprise the “When we decided to invest in India Korea was one of the few bulk with Naphtha accounting for in 1998, it was a big risk. We were countries that India has signed nearly a quarter of it. In contrast India unknown entities and for us India a Comprehensive Economic imports value added engineering was an unknown territory as well,” Partnership Agreement, an abridged goods from Korea like automobile says Y.K. Koo, managing director, form of a Free Trade Agreement, parts, telecommunication equipment, Hyundai Motor India. “It was a gutsy in 2010. It was signed in quick time hot rolled iron products, petroleum move and an act of faith. Today we with just three and a half years of refined products, base lubricating are celebrating two decades in this negotiation. Bilateral trade between oils, nuclear reactors, mechanical market and it has served us really the two nations gathered momentum appliances, electrical machinery & well. You can say we have served again following the implementation of parts and iron and steel products. the country well too. So many other CEPA. In 2011 trade between the two manufacturers from Japan and US nations crossed $17 billion registering The import of raw materials from and later from Europe also entered a 40 per cent growth over a two-year India and export of finished goods India but nobody has been able to period. The buoyancy led to the target from Korea has helped the East Asian perform as well as us.” being revised to $40 billion by 2015 country more than India. by the then Indian PM Dr Manmohan Hyundai’s success has rubbed off Singh and Korean President Lee- “India’s FTA with Korea is on its sister firm Kia Motors as well, Myung Bak. advantageous to that nation but India which decided to enter the country has the least utilisation through this with an investment of $1.1 billion pact,” says Anil Rajvanshi, Head towards a 300,000 unit per annum THE IMPORT OF RAW – Corporate and Industry Affairs, factory in Andhra Pradesh in 2017. Reliance Industries Ltd. Even as it is yet to start selling cars in MATERIALS FROM the country, its first model will hit the INDIA AND EXPORT OF India does not structurally keep track roads only by mid-2019, it increased FINISHED GOODS FROM of utilisation levels of its FTAs but its investment in the country to KOREA HAS HELPED THE according to Federation of Indian $2 billion earlier this year. EAST ASIAN COUNTRY Export Organisations the utilisation MORE THAN INDIA. levels of India’s FTAs lie between “We have big plans in India and have 5 per cent and 15 per cent. “This is already made significant investments the lowest rate of FTA utilisation in here. Construction of our plant is However, things went downhill the world which is mainly due to the going on in full swing and is ahead thereafter. Bilateral trade declined the country’s import competitiveness,” of schedule by a month,” said Han following year to $16.68 billion and says Ajay Sahai, Director General and Woo Park, global CEO and president, could tally only $18.13 billion by fiscal CEO of FIEO. Kia Motors Corp. “We are making 2015. Thereafter it declined again to additional investments in the plant $16.56 billion in 2015-16 and only Alongside opening the Samsung and would spend $2 billion by 2021.” inched upwards to $16.82 billion in factory, the two heads of the state 2016-17. Thanks to steps taken by held formal delegation level talks In between these stories of success, both governments to enhance ties where the CEPA was expanded one gigantic failure — that of South in the recent past, trade grew in and trade was liberalised with Korean steel major Posco’s moribund fiscal 2018 to hit a high of $ 20.8 concessions in 11 more items. As $12 billion steel project in Odisha, billion but it has still not achieved in 2012, a fresh target of $50 billion sticks out like a sore thumb. The its true potential. bilateral trade by 2030 was set. country’s biggest FDI project had to be shelved after a decade of trying Further, as is the case with most The two countries would hope history as Posco could not get beyond developed economies, the trade does not repeat itself this time. India’s infamous red tape, procedural numbers are heavily skewed in favour www.indiaincgroup.com August 2018 37 NEWS IN BRIEF
India and its Various deals with companies in the US, Germany and Japan reflect India’s attraction workforce make across diverse sectors. a global mark
Hindalco unit to buy 100 Nagasaki Thyssenkrupp bags Aleris for $2.6bn companies to induct $115mn contract in UP Indian engineers erman steelmaker Thyssenkrupp has bagged bout 100 companies in a contract worth around the region of Nagasaki in G$115 million from Doosan Power Japan are ready to induct Systems India (DPSI) to supply AIndian engineers to support their material handling plants for two information technology, shipping and indalco Industries has agreed thermal power projects in Uttar manufacturing service industries, to acquire US-based Aleris Pradesh. according to Keisuke Yamamoto, Corporation for an enterprise the Nagasaki Prefectural Assembly Hvalue of $2.58 billion in a move that The plants will be part of the member representing the Iki City will help Hindalco become a global Obra C and Jawaharpur coal-fired Constituency. leader in aluminium excluding China. power stations in the north, both to be operated by Uttar Pradesh The offer to Indian engineers is in line The acquisition will be done through Rajya Vidyut Utpadan Nigam Ltd with the call given by Shigeki Maeda, Hindalco’s wholly owned subsidiary, (UPRVUNL) and executed by Executive Vice President of Japan Novelis Inc. The combined entity will DPSI, a company statement said. External Trade Organization (JETRO) have revenue of $21 billion and an inviting 200,000 Indian professionals, employee base of about 40,000. especially from the IT sector.
Kumar Mangalam Birla, Chairman, At an interactive session organised by Hindalco Industries, said: “The $2.58 Bangalore Chamber of Industry and billion debt-funded deal would be Commerce (BCIC) in Bengaluru this on the books of Novelis and the month, Yamamoto said that, of the company would pay $775 million in 2,000-odd companies based out of cash for the equity portion.” Nagasaki region, 93 companies have expressed their consent to induct Since Hindalco’s $6 billion acquisition Indian engineers to fill in technology of Novelis in August 2007, Novelis and human resource capital shortage had further “invested $2 billion in the faced by the region. business over the last decade,” the company said in a statement. The Prefectural Government, he Malay Das, Managing Director added, was finalising incentives for Birla added: “The merger will have and CEO, Thyssenkrupp Indian companies in the IT, services, synergies of $150 million. This also Industries India, said: “We are shipbuilding and manufacturing enhances the access to world-class very proud to put this experience sectors. manufacturing capabilities for our to work with DPSI for the existing Indian aluminium value- Jawaharpur and Obra C power T.R. Parasuraman, Deputy Managing added operations and accelerates our projects.” Director, Toyota Industries Engine path to making world-class products India and managing committee in India.” Once operational, they together member at BCIC, said India has a will produce 2,640MW of power huge and highly skilled manpower The acquisition by Novelis is expected - enough to supply roughly 16 available and would to be keen to tie to close in 9-15 months subject to million homes in India. up with Nagasaki based companies customary closing conditions and to promote bilateral trade on regulatory approvals. priority bases.
38 August 2018 REGION FOCUS
Oxford and India: A researcher traces Oxford’s Building on historic ties age-old ties with India and its role in by Sachi Patel enhancing UK-India relations.
he Oxford India Society strives the largest collection of Sanskrit as Indira Gandhi, India’s first female to build on an extensive history manuscripts outside of India. There Prime Minister, Manmohan Singh, of engagement between Oxford are currently approximately 386 Prime Minister of India between 2004- Tand India. Indian students studying a wide 2014 and Cornelia Sorabji, India’s first range of subjects at Oxford, which female lawyer. Ever since 1579, when Father is an increase of almost 50 per cent Thomas Stephens of the University since 2006. There are presently 16 Oxford India Society of Oxford’s New College became Indian states in which Oxford has The Oxford India Society was formed the first chronicled Englishman to active collaborations, 1,817 Oxford in 2003 to celebrate India in Oxford visit India. Since then, relations alumni in India and 144 Indian and has since become a core feature have grown leaps and bounds, academic staff. These statistics reflect of the University of Oxford, and the highlighted by the conception of the the depth of Oxford-India relations central hub for student activities Boden Chair in Sanskrit in 1832 and and the mounting importance of related to India. The Oxford India the advent of Oxford’s first Indian affiliating with India for the University Society is the premier society for students in 1871. In 1912, an Indian of Oxford. There are several notable Indian students at the University of branch of the Oxford University distinguished Indian academics that Oxford promoting Indian culture and Press was also established. Today, have been based at Oxford including contemporary thought, through a the University of Oxford is a thriving Sarvepalli Radhakrishnan, Former range of activities such as cultural environment for areas of Indian President of India; Amartya Sen, performances, speaker events and study such as language, religion, a recipient of the Nobel Prize in celebrations of food, music and literature, history, public health and Economics; and C.N.R. Rao, Head festivals. The society is a hub for sustainable development, at both an of the Scientific Advisory Council to social interaction and recreation undergraduate and graduate level. the current Prime Minister of India. amidst the intense demands of The University of Oxford’s Bodleian Furthermore, Oxford has a renowned student life at the University of Oxford. Indian Institute library contains over history of educating some of the most The society also regularly uses 100,000 volumes of literature and influential Indian public figures such events to raise funds for charitable www.indiaincgroup.com August 2018 39 REGION FOCUS institutions in India such as the ‘Asha for Education’, ‘Bhopal Medical Appeal’, ‘Give India’ and ‘Jamghat’. In recent times, the University of Oxford has hosted a diverse range of distinguished Indian leaders including the Vice-President of India, Mohammad Hamid Ansari, screen icon Amitabh Bachchan and renowned business leader Ratan Tata. In my role as the Oxford India President in 2017, I had the honour of overseeing the visit of Indian MP Shashi Tharoor, business tycoon Ajay Piramal and Nobel peace prize winner Kailash Satyarthi. The society aims to continue this fine tradition of inviting prominent figures and partnership for a post-Brexit Britain. more options and far more suitors. addressing pertinent contemporary The event showcased candid, In other words, the UK-India alliance issues in the foreseeable future. thought-provoking perspectives from is an asymmetry and therefore there the members of the distinguished is a greater necessity for the UK to The Future of India-UK relations panel on the future and potential of establish an alliance with India than In consideration of this convention, India-UK relations whilst addressing vice-versa. Nevertheless, it was the society aspires to host events crucial matters concerning Brexit. also acknowledged that positive and generate discussions concerning negotiations between the two India-UK relations in collaboration Commonwealth nations would be with India-centric institutions based THE UK-INDIA ALLIANCE mutually beneficial, and resurrecting at the University of Oxford. Last year, IS AN ASYMMETRY AND the historic ties between these two the UK and India commemorated 70 THEREFORE THERE IS great nations was crucial in delivering years since India’s Independence, A GREATER NECESSITY a win-win scenario that would in honour of which we launched the FOR THE UK TO tremendously benefit both parties. Oxford India Speaker Series. The UK has had long and complex ties ESTABLISH AN ALLIANCE The Oxford India society will continue to India, dating back to over 400 WITH INDIA THAN VICE- to explore India’s role in this evolving years old. Britain’s relationship with VERSA. world of disruption, populism and India began over 400 years ago Brexit, highlighting how India adapts with the East India Company who to this new world scenario. The moved into a political vacuum in the Each of the speakers was in society will analyse and explore wake of the demise of the Mughal agreement that robust India-UK how India has progressed and what empire. The Company was eventually relations must be fostered, as Brexit challenges still stand in the way replaced by the Crown, which was developments unfold, and it is the of its growth and development, as followed in 1947 by India’s declaration responsibility of both the UK and part of these discussions events of Independence. Since then, the India to continue to build upon their revolving around India-UK relations once formidable British Empire present-day wide-ranging areas of will figure prominently. The University has disintegrated and India has collaboration such as trade, defence, of Oxford is a global centre for recovered from bearing the burden education and business. However, exemplary learning and research, of colonialisation. As Brexit looms despite the optimism, the speakers hence it is imperative that the and as discussions surrounding stressed that no longer was the UK institution contributes to pertinent Brexit plans escalate, there are in a privileged position, especially discussions surrounding the future vital questions to be considered in light of India’s rapid escalation of India-UK relations, particularly concerning the UK’s future alliance upon the world stage, marked by through initiatives directed by those with its former colony. its economic success and circle of who embody the future of India-UK influence. In contrast, the UK on the relations, the student community. Recently, in conjunction with the other hand is on the verge of leaving Oxford India Centre for Sustainable the EU and continues to grapple with Development housed at Somerville its declining presence in the new Sachi Patel is the Founder College, we hosted a panel event world order. Indeed, recent statistics of Oxford India Speaker on India-UK relations post-Brexit. indicate that India has supplanted the Series and a member of The panel consisted of an illustrious UK in the world economic standings, the Advisory Panel of the assortment of presenters who becoming the world’s fifth largest examined the opportunities and economy. Consequently, as one Oxford India Society. hurdles to a prosperous India-UK speaker expressed, India has far
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t 1 2 0 2018 10 8 20 GLOBAL INDIAN The Indian wine market is one of the world’s most exciting
As the Founder & CEO of Sula Vineyards, Rajeev Samant is one of the pioneers of Indian wine and responsible for transforming the Nashik region in Maharashtra into the country’s wine capital. In this interview, the London-based professional, who divides his time between the UK and India, celebrates Sula’s latest milestone of clocking 12-million bottles a year in sales.
ow would you describe the growth story of Sula Wines?
HSula has just clocked 1 million cases of sales in the last 12 months, making us the first Indian company to sell 1 million cases (or 12 million bottles) of wine in a calendar year. This is a huge achievement that includes the total dispatches from our winery – domestic sales as well as international.
And, it just shows the way the Indian wine market is growing – it marks a 15 per cent increase in volume terms over the previous year and 20 per cent increase in value terms.
The Indian wine market is today one of the world’s most exciting, in terms of talent and potential growth. Sula is the clear market leader, with more than 60 per cent market share and the consumer’s number one choice. It’s a great place to be after a lot of hard work over the years.
Next year, will mark 20 years of Sula and some big celebrations are coming up. We have come a long way. Our first year, we sold 50,000 bottles and last year it was 12 million; it’s been a great journey.
What are some of the trends you would highlight in terms of the Indian wine market?
The perception of Indian wines has absolutely changed over the last decade and that is down to quality. Our wines have been getting better and better and the awareness of wine in India has risen dramatically.
42 August 2018 GLOBAL INDIAN
We did have the problem of Spencer in the UK. It is still a struggle job. Today, at least one person from quality not being that great and though, as international retailers each family is involved with Sula. The consumption being low. But today, expect products at extremely low prosperity that has come to the village both those factors have undergone prices which means a compromise on is a source of great joy. And, that is a transformation. Today, our wines margins. We are in a delicate situation just one of hundreds of villages. are seen on well-known supermarket in India, where we operate on a On the farming side, we are buying shelves, competing with other wines smaller scale. grapes from across 2,000 acres, from Chile, Australia etc. That is a which has led to prosperity for the great stamp of excellence. But, of course, the most exciting story farmers who are then able to employ for us is the Indian market, which more people, creating a real virtuous In India, there has been a total move has grown leaps and bounds, and cycle of change. Today, Nashik has in wine consumption, at three times has created such a strong brand the highest agriculture income of the share from when we started. recognition for Sula. any district of India and that is a These are still small numbers but the phenomenal result. growth trend is much faster than any other market. OUR TOP THREE What are some of your future plans MARKETS ARE THE UK, for the brand? So, there is more and more awareness which is leading to more GERMANY AND US AND We are very excited about our new consumption of wine, growing at 20 WE SELL TO ABOUT 22 Karnataka winery, which is less than per cent CAGR. COUNTRIES. WITHIN a two-hour drive from Bangalore. We THREE OR FOUR would love to replicate the success The consumption trends in India that we have had in Nashik in terms are very much male and female, YEARS, WE SHOULD of creating another beautiful tourist though wine is definitely the product BE AVAILABLE IN 30 destination over the next year or two. that has the highest share of female COUNTRIES. We are also introducing new wines drinkers. Anecdotally, I would say the every year and this year we will proportion of red wine drinkers be launching, for the first time, our is higher among men. How tough has the journey been Chardonnay, which is the king of to establish Nashik as India’s wine white wine and we haven’t had one What are some of your plans for hotspot? so far. A lot of R&D goes on behind the international markets? the scenes to find the right blends From a regulatory and bureaucratic and really the sky is the limit. And, Our top three markets are the UK, point of view, a lot of work was compared to when we started, Germany and US and we sell to needed. But from a consumer point things are much better but there about 22 countries. Within three or of view, it was just waiting to happen are still issues with bureaucracy four years, we should be available in and people were ready to jump in. It’s and a little bit of ambivalence around 30 countries. been a tremendous success and from alcoholic beverages. day one, we knew we did do the right Also, looking at wider sales, outgoing thing and never looked back. However, the governments of Duty Free at airports has been a Maharashtra and Karnataka have in great growth story – from no sales to Last year, Sula was one of the general been very supportive and we major airports in India, like Mumbai most visited wineries in the world, are looking forward to expanding to and Delhi, now witnessing impressive with 350,000 visitors from around more and more states. There are also Indian wine sales. India and the world. That makes it clear health benefits in moving people a huge tourist destination and 95 away from spirits to wines. In the UK and in cities like New York, per cent of the traffic comes from the higher-end Indian restaurants domestic tourists. How does being a Global Indian have Sula on their wine lists. Today, impact your professional decision- you can find a selection of Indian Nashik is also one of India’s fastest- making? wines on the list which was not growing cities and we have a lot of possible five years ago. So that locals for whom wine has become a I feel the best way to live is to have a is another great trend, as Indian part of their every-day lifestyle. As one dual life, with one foot firmly in India restaurants offer more subtle and example of the impact on the region, and the other in a place like London. delicately spiced flavours, the the local village of Savargaon, which For me, London is by far one of the possibility of pairing with Indian wine is barely 500 metres away from our world’s greatest cities. Ironically, the has also grown. winery, lives have changed beyond Brexit vote has also made it much belief for the better. When we first more affordable. The cost of housing Sula was the first Indian wine to find arrived, there was not a single person has plunged and such factors a spot on the shelves of Marks & in the entire village who had a formal have made www.indiaincgroup.com August 2018 43 GLOBAL INDIAN London even more attractive. our business. We also have a strong and Nashik. One of the problems we are grappling import business and bring in number within India is environmental of prestigious brands like Remy Planning for India’s energy degradation and high levels of Martin Cognac into India. And, as we requirement is based on energy pollution and London offered a good all know, there are great spirits being security, affordabi dominate the option, including the option of going crafted in the UK and Europe. innovation scenario for years to come for a run every morning in Hyde Park. and has the potential to re-energise Professionally, it offers a good base So, that is what makes me divide my the India-UK partnership for a to further the international aspect of time between London, Mumbai greener future.
44 August 2018 GUEST COLUMN
Why UK and India need to reform their visa processes
by Mohan Kaul
The President of the Indian Professionals Forum lays out the business case for better immigration policies.
ndia and the UK have long role as Digital, Culture, Media and into a manufacturing hub, and easing enjoyed close commercial and Sports minister, where Indian and UK business travel through less onerous cultural ties and since Britain has companies will collaborate on projects visa requirements. The UK and India Idecided to leave the EU, it is looking including artificial intelligence, fin-tech should look at easing the visa rules to at India with renewed Interest. and health-tech. make it easier for professionals and investors to do business and fill the Indians are the third-largest ethnic talent gaps. group in the UK with nearly 2 million people. Roughly half of them are A GLOBALISED WORLD Such visa reforms could have a highly skilled professionals, working WITH FREER MOVEMENT significant effect on increasing in business, government, healthcare, OF CAPITAL, GOODS bilateral trade. For closer and stronger education, technology and other AND PEOPLE LEADS ties, we need to see some easing sectors. They are also one of the TO AN INCREASE IN to help migration, especially of most prosperous ethnic minority short-term visas such as for Indians groups here. EMPLOYMENT AND GDP students and those coming to work OF THE COUNTRY. for companies. Trade and investment between the two nations has also been strong. The UK has already relaxed visas for Between 2000 and 2016, the UK Yet these close ties cannot be the Chinese by introducing a two-year invested $24.07 billion in India – taken for granted. Recently, the multiple-entry visit visa. Why not do increasing its investment by $1.87 Confederation of British Industry the same for Indians? Indeed, earlier billion between 2015 and 2016 – (CII) warned that Japan had recently this year, the Royal Commonwealth representing 8 per cent of all foreign overtaken the UK as the largest G20 Society called for a more economical direct investment (FDI) into the investor in India. So what can be visa regime between India and the country. Meanwhile, India is the third- done to help maintain the strong UK- UK to reduce the cost of a two-year largest investor in the UK creating India commercial relationship? visa from £388 to just £89 and allow thousands of new jobs, employing travellers to make repeat visits within 110,000 people in 800 Indian A globalised world with freer two years. Access to visas is expected companies with a turnover of £47.5 movement of capital, goods and to be a key bargaining chip when the billion in 2016. people leads to an increase in UK negotiates a free trade agreement employment and GDP of the country. (FTA) with India after Brexit. Such links must continue to be The pro-business Modi government, developed. More so, in the post- as it reaches its four-year anniversary, Moreover, it has been reported Brexit world. UK Health Secretary has been credited with a host of that around 1,000 doctors, lawyers, Matt Hancock had announced a new reforms aimed at attracting foreign engineers and entrepreneurs from UK-India Tech Partnership during his investment, establishing the country countries outside the European Union www.indiaincgroup.com August 2018 45 GUEST COLUMN
THE UK AND INDIA SHOULD LOOK AT EASING THE VISA RULES TO MAKE IT EASIER FOR PROFESSIONALS AND INVESTORS TO DO BUSINESS AND FILL THE TALENT GAPS.
(EU) on a Tier 1 (General) visa were around £53, it is no substitute for a of Indian-born population in the UK, being denied residency rights over reasonably priced regular visa. would be the introduction of a 24-hour reportedly minor, legally acceptable same-day visa turnaround service. corrections in their tax returns. Many The e-visa system has limitations Most countries that prioritise tourism of these are Indians. I urge the Home that make it unsuitable for many have such an offering in place. For Secretary to restore the work rights travellers. Firstly, under the e-visa emergency travel or urgent business and access to health benefits of those system, visitors have their biometric travel, India does have a 24-hour affected by this crisis while they await data such as fingerprints and retina visa, but for other last-minute tourist the outcome of the review. They have scans checked on arrival in India travel – such as late invitation to a been undergoing immense hardship, and this can lead to waiting in long wedding, a last minute holiday or a which needs to be addressed queues. Secondly, there are instances surprise visit – no same-day urgently. The UK government should where some people travelling on an service exists. encourage Indian professionals to e-visa haven’t even made it into India fill crucial vacancies in medicine, at all – most notably in the case of Such reforms to visas can help India engineering and start-up businesses, the actor Orlando Bloom, who was be seen as efficient, modern and instead of turning them away. A told to get on a flight back to London helpful for travellers and help cement welcoming immigration policy is the after landing because his e-visa had the ever more important UK-India need of the hour, not a hostile one. not been cleared. There have been relationship. cases of websites fraudulently offering I also see the high cost of visas as a Indian e-visas to unsuspecting big deterrent, both for business and applicants, or charging more than Dr Mohan Kaul is President travel between the two countries. the £53 fee. The visa fee for the regular visa has of the Indian Professionals gone up from £30 in 2013, to £120 for If visa fees are reduced, undoubtedly, Forum (IPF), an Indian any duration of up to one year. This it will lead to more visitors from the Diaspora think tank has become a deterrent for one-time UK and vice versa. supported by the Indian visitors and tourists who probably High Commission in may visit for a couple of weeks Finally, another important change that to 30-60 days. Even though India would further boost travel from the London. has introduced e-visa, which costs UK to India, given the high number
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© 2018 Infosys Limited, Bengaluru, India. www.indiaincgroup.com August 2018 47 EXTRACTS Influencing Global Outcomes Together Sir Michael Arthur, Britain’s High Commissioner to India between 2003 and 2007 and now President of Boeing Europe, brings to light key areas where cooperation between the UK and India can propel both nations towards a better future.
ackdrop seem a little different:
India is Britain has for Bemerging as one of centuries been a the small number leader beyond its of countries who size in contributing will help determine to global security, the course of the sometimes twenty-first century. controversially so in Meanwhile, the UK is certain regions, but leaving the European preserving global Union and launching security is a policy out on its own. The driver for the UK risks of the change nonetheless. look more immediate and real than the On climate change, opportunities. India the two countries will need to be an have diverged, important part of sometimes fractiously. Britain’s global leg—if This fundamentally India sees its interests mutual long-term that way. interest in managing climate change So, the three key should lead us questions are: Can to much closer the UK find success in cooperation. its twenty-first century relationship with however much the OECD On migration, Britain India? What does success look like? world tries to put up fences. currently sees its interests as being And can a huge twenty-first century India will inevitably be a major fundamentally opposed to India’s India find value out of its links with the supplier. It also has almost ambitions to send more people to the UK’s global history and its ambitious, unparalleled experience in UK, whether students, or business but very different global future? managing mass migration. people, or just family link-ups (loosely defined!). This issue is going to need Drawing parallels 4. Technological change—As very careful managing in the decade India will be a central player in at we stand on the cusp of the ahead, lest its toxicity infect all the least five of the most significant public next great IT and biotech other areas where our two countries policy issues of this century: revolutions, whatever they may have so much potential together. be, I have no doubt that India 1. Global security and stability, will be one of the main players. On technology, the two countries starting in Asia but beyond. have everything to gain from working 5. Global trade—India sits at the together and building on their shared 2. Climate change—Helping to physical crossroads of much experiences. prevent deterioration and trade between Asia, Africa, mitigating the consequences Middle East and Europe. India As for trade, well, the UK was the for the 1.3 billion people in needs to grow its economy in home of Adam Smith. It is interesting India who are directly impacted order to sustain, and feed, its that the trade policy pronouncements by global warming. burgeoning population. How of, for example UKIP, are not as India manages trade policy is overtly protectionist as those of 3. Migration—India’s existing still in flux. comparable populist movements in, diaspora is immense and say France. But the harsh reality is immensely successful. Global Seen through the UK end of that that India is not yet at a point where mobility is going to accelerate, telescope those same challenges it is open to free trade access in the
48 August 2018 EXTRACTS
INDIA’S EXISTING DIASPORA IS IMMENSE AND IMMENSELY SUCCESSFUL. GLOBAL MOBILITY IS GOING TO ACCELERATE, HOWEVER MUCH THE OECD WORLD TRIES TO PUT UP FENCES. INDIA WILL INEVITABLY BE A MAJOR SUPPLIER. IT ALSO HAS ALMOST UNPARALLELED EXPERIENCE IN MANAGING MASS MIGRATION. things that matter most to the UK— parliamentary democracy, with • India and UK businesses services like law and insurance the manifold overlaps between enabled to cooperate globally and finance. our two Parliaments that so on finance, law, insurance etc. intrigue people. But beyond Within both our countries and, Common ground Parliament we both value a together, beyond. As we look to a future where the two diverse, open and free press. • Britain open to taking much countries work together, globally, • Education—The affinities more talent from India in on these and other major areas, between our two systems our universities, start-ups, what are the positives that they can must seem extraordinary to big businesses, the creative draw on that are distinctive to this an observer from a different industries. relationship? I see several. tradition. The potential value of • A step change increase in foreign direct investment by each country in the other. Businesses will only make these decisions if the ambient economic culture is right—and better than now. • India and the UK making common cause on both the technology opportunity and the policy requirement of combating global climate change. • A closer strategic dialogue and cooperation on security issues in both Asia and Europe, with invigorated joint action to combat global terrorism and deeper links on the challenge of cyber security.
All these should be win-win. Together we can have more influence on global outcomes than winning-partnership.com separately. At a time of changing US engagement in the world, this potential new era of UK–India cooperation takes on a new • Language—It is always the bond is self-evident dimension. So, in both countries— trumpeted as a leading and immense. the public sector, business and civil positive link. • The UK Indian diaspora—It society alike—all have to recognise • Law and all that goes with is a rich (in every sense!) link the potential of mutual engagement it—Our modern systems grew between us. and support, and work to make from the same plant. They • Affinities between the peoples it happen. have both evolved but the of both countries—A shared jurisprudence of the Indian love of, for example cricket, Supreme Court is replete and the many gastronomic with references that would be borrowings in both directions, The above is a synopsis of equally recognisable in the attest to a very fundamental one of the chapters from British Supreme Court. human link—fun and food. ‘Winning Partnership: India- • Deep-seated commitment UK Relations Beyond Brexit’, to pluralist democracy, and Conclusion edited by India Inc. Founder & in the same tradition—By For me, success on this agenda CEO Manoj Ladwa. this, I mean much more than would include the following just a common approach to (and more beyond): www.indiaincgroup.com August 2018 49 INDIA GROUP
SPECIALIST LEGAL ADVICE FOR BUSINESSES AND INDIVIDUALS Penningtons Manches has a strong track record of KEY INDIA CONTACTS RUSTAM DUBASH working with Indian companies investing in Europe Partner and head of India group and European companies entering the Indian market. T: +44 (0)20 7457 3176 E: [email protected]
nnbanking and finance PAT SAINI Partner and head of immigration nncommercial contracts T: +44 (0)20 7457 3117 E: [email protected] nncorporate mergers and acquisitions
nncross-border litigation and international arbitration PHILLIP D’COSTA Partner, commercial dispute resolution T: +44 (0)20 7457 3029 nnimmigration visas and employment E: [email protected]
nnintellectual property, life sciences and technology JOANNE VENGADESAN Partner, commercial, IP and IT nninternational financial services regulation T: +44 (0)118 402 3833 E: [email protected] nnprivate wealth
TEJA PICTON-HOWELL Consultant, corporate T: +44 (0)20 7457 3002 E: [email protected] Penningtons Manches LLP - your partner in law LONDON BASINGSTOKE CAMBRIDGE GUILDFORD OXFORD READING SAN FRANCISCO www.penningtons.co.uk
50 August 2018 SOCIAL IMPACT FOCUS Fighting for the right to sanitation by Meenakshi Batra Charities Aid Foundation (CAF) India says it has successfully accelerated its Water, Sanitation & Hygiene (WaSH) agenda through the power of partnership.
Clean Water and Sanitation. a holistic environment for young children, especially girls. Our projects, in partnership with a diverse range of partners address the Using a sustainable service system national agenda of Swachh Bharat approach, we have adopted a – Clean India and the global agenda universal methodology to advocate in the form of advancing SDG6 – our sanitation programme pan India. ensuring sustainable management of Through the use of pertinent, cost INDIA water and sanitation for all. Our “Right effective technologies we have to Clean Water and Sanitation” follows focused on building user-friendly, a universal Triple A Framework: sustainable infrastructure and facilities. These are built in a manner GROUP Through our intervention we that ensures equitable accessibility have been working to enhance for all types of users. We have schools sanitation by improvising developed a comprehensive strategy orking on the principle of infrastructures. We promote with multiple primary and secondary advancing the national sustainable technologies such as rain level indicators to select the schools and global agenda for water harvesting, green campus and which receive the interventions under Wsustainable development, CAF clean energy for solutions in providing the programme. Some of the prime India has been providing extensive SPECIALIST LEGAL ADVICE FOR BUSINESSES AND INDIVIDUALS clean water facilities. Additionally, we indicators on which the schools are support to address the sanitation enhance awareness and knowledge assessed are Provision of Sanitation KEY INDIA CONTACTS challenges across India for the past Penningtons Manches has a strong track record of among children especially girls and Facilities and Provision of Safe several years. At CAF India, we RUSTAM DUBASH local community members on safe Drinking Water. working with Indian companies investing in Europe Partner and head of India group realise that accessibility to clean, safe and European companies entering the Indian market. T: +44 (0)20 7457 3176 and secure sanitation practices are E: [email protected] essential in keeping the continuity and retention of young children in nnbanking and finance schools. According to the World Bank, PAT SAINI To initiate safe and secure water Partner and head of immigration in 2006, the cost of not having toilets, nncommercial contracts ACCESS T: +44 (0)20 7457 3117 for the country as a whole, was $54 and sanitation facilities E: [email protected] billion. The biggest victims of this nncorporate mergers and acquisitions lack of access to basic sanitation are children, women and adolescent nncross-border litigation and international arbitration PHILLIP D’COSTA Partner, commercial dispute resolution girls. CAF India’s approach towards T: +44 (0)20 7457 3029 Water, Sanitation & Hygiene (WaSH) nnimmigration visas and employment E: [email protected] programme is based on developing a To impart knowledge on safe holistic model, with emphasis on the AWARE nnintellectual property, life sciences and technology hygiene management JOANNE VENGADESAN ‘construction of toilets’, not as an end Partner, commercial, IP and IT to the problem but rather viewing it as nninternational financial services regulation T: +44 (0)118 402 3833 a means to address the larger issues E: [email protected] of education, health, hygiene, dignity nnprivate wealth and gender equality. TEJA PICTON-HOWELL To implement sustainable Consultant, corporate As a global signatory to United T: +44 (0)20 7457 3002 Nations Global Compact and life time ACT intervention among the community. E: [email protected] member of the local GCNI network, Penningtons Manches LLP - your partner in law CAF India has enhanced the Ten UN Guiding Principles (UNGP) through LONDON BASINGSTOKE CAMBRIDGE GUILDFORD OXFORD READING SAN FRANCISCO its sustainable practices conducted hygiene and management. Our overall under the larger ambit of Right to www.penningtons.co.uk mission is to promote and nurture We have exclusively made provisions
www.indiaincgroup.com August 2018 51 SOCIAL IMPACT FOCUS to address the challenges faced for All” within our by women and especially abled. programmes. As Reducing all forms of inequality and a result we have RIGHT 2 SANITATION ensuring gender equality have been emerged as grant PROGRESS SO FAR intrinsic elements of our programmes. mobilisers to impact accelerators for our CAF India team of specialists have private sector and BENEFICIARIES CONTRIBUTORS developed a robust system of implementation project monitoring and evaluation partners. Through processes. These processes have our ongoing 0.5 M + 47 + been inbuilt within the organisation programmes we people NGO partners and form an intrinsic element in all have ensured that the programmes implemented on the outcomes of ground. Our internal team of senior the development 1.18 M + 51 + researchers and sustainability agenda reach to the students coparate specialists oversee the overall project most marginalised (more than donors cycle management. This includes and vulnerable 50% grils) conducting processes of baseline sections of the studies, periodic evaluations and population situated TOTAL DONATIONS monitoring mechanisms which are in the most remote conducted by the cluster for each parts of the country. project. Our projects are implemented by specialised NGOs, duly validated We are cognisant $3 M + by our due diligence team. that the challenges faced by our country cannot CAF INDIA HAS be solved by just GEOGRAPHICAL REACH ENHANCED THE TEN UN one entity and GUIDING PRINCIPLES hence through our various initiatives, (UNGP) THROUGH ITS CAF India has SUSTAINABLE PRACTICES consistently worked CONDUCTED UNDER THE towards igniting a LARGER AMBIT OF RIGHT spirit of partnership TO CLEAN WATER AND in resolving SANITATION. diverse causes and development challenges faced in the global and 23 + states donors Our sanitation programme involves national context. a range of stakeholders, including Most of our 02 + union territories community members, School corporate partners Management Committees (SMC), involved sanitation Panchayati Raj Institutes (PRI), projects range from municipal authorities, teachers, diverse sectors children, corporates/private primarily FMCG, COMMITMENTS companies, state and district IT, Textile, etc. education/health departments, local We are involved and national media and celebrities in advancing for sustainable sanitation outcomes. our partners' Networking and linkages with sustainability government and other stakeholders interventions in the 420 + 7800 + 1300 + were established for promoting remote areas where schools toilets other sanitation partnership, advocacy and synergy their factories, interventions for enhancing convergence among bottling plants, key stakeholders thus furthering the manufacturing units agenda of partnerships. are located. There Total for all projects including is a tremendous those ongoing in July 2018 CAF India also follows the UN pressure on water principles of “Universal Partnerships resources, which
52 August 2018 SOCIAL IMPACT FOCUS has resulted in stress in availability of both surface and groundwater resources. Also, the communities are Revitalisation of 633 Hand Washing Staions, 7,800 tolilets, 498 drinking water station & 342 rain water harvesting structures. so marginalised that nearby schools and other facilities face deteriorated Support my school (SMS) project for 600 schools to be revitalised, OUTPUT bene tting 200,000 students. sanitation conditions due to lack of water availability and awareness. We initiated the task of reviving water bodies along with providing clean sanitation facilities in these areas as these are the immediate source for
Provision of drinking water systems with in-built lteration mechanism. promoting safe, clean and healthy Separete sanitation facilites for boys & girls in schools. environment. This also implies that Creation of sustainable & innovative infrastructure in the form of smart any local intervention conducted in household toilets. the area of reviving, restoring and OUTCOME Developed skills of masons & women's groups on construction of safe sanitation infrastructure. providing access to clean water Engagement with government schools on the issue of sanitation with and sanitation will directly benefit special focus on safe hygiene management for young grils. to the immediate section of the marginalised population residing in the nearby remote areas. Thus also leveraging the engagement of our corporate partners in the local areas Reduction in school dropout rates. of interventions and accentuating Attitudinal change among school children towards sanitation. the impact in diverse states of India. Enhanced capacities of school management committees (SMCs) & These strategic interventions also Mahila Sangathan (women's cooperative) in terms of sanitation. IMPACT enables alignment of their CSR Mass awareness amoung the local community on hygiene & sanitation leading to prevention of open defecation. operation with core business.
While CAF India is cause universal, sanitation is one of the key sectors of our involvement. In the last GLIMPSES OF OUR WASH INCREASE KERNING decade, as part of our Public-Private- Community initiative, we have successfully managed implementation of several collaborative, pro poor projects that have addressed sanitation issues, facilitated service delivery for the urban and rural communities and built their capacities. These projects have largely and regularly been supported by private sector, individuals, institutions and UN agencies. Working at the crux of a changing development landscape we need to do more and expect support and guidance from all sections of the society at large to be successful in our endeavour to do more in order to transform lives and communities.
Meenakshi Batra is the CEO of Charities Aid Foundation (CAF) India with over 24 years of experience in the international development, Corporate Social Responsibility (CSR) and not- for-profit sector.
www.indiaincgroup.com August 2018 53 LAST WORD India cracks down on economic offenders Modi strikes at the heart of crony capitalism with new law to confiscate the assets of fugitives who flee the Indian justice system to other jurisdictions.
ost Indians had not heard The law allows the authorities to In June, a month ahead of the of Nirav Modi prior to the confiscate all the properties and passage of the bill in Parliament, he beginning of this year. Fewer assets of individuals who try to evade made an offer to put assets worth Mstill had heard of Mehul Choksi, Nirav the Indian legal system by escaping to about $2 billion (his estimate) on Modi’s uncle and allegedly his partner other jurisdictions – even before their the block to repay his dues. The in crime. formal conviction. swagger and the sense of entitlement were gone – and replaced with Both are fugitives from the law in Once a court classifies an individual a pragmatism stemming from a India. The former’s whereabouts are as a fugitive, he/she will not have the realisation that the Modi government currently unknown and the latter has right to pursue civil cases unless they means business. “bought” a citizenship of Antigua. return to India and face prosecution. The government told Parliament Their crime: they engineered that 28 Indians have fled the a $2-billion scam at the public country between 2015 and June sector Punjab National Bank 2018 after committing financial and fled the country when their irregularities. The new law misdeeds came to light. will ensure that even if future offenders manage to flee India, The once high-flying Vijay they will not be able to enjoy any Mallya, who had earned the benefits from their crimes. sobriquet of King of Good Times by virtue of his flashy lifestyle, Legal experts are unsure about is also a member of the Modi- how the courts will view a law Choksi club. He fled the country that allows the government leaving unpaid bank loans, to seize assets of individuals along with interest, of about even before they are convicted. $1.5 billion. THE MODI GOVERNMENT This will almost certainly be tested HAS STEERED THE legally, but till that happens, the Modi Till date, the Indian authorities government has forcefully answered have been able to retrieve only a FUGITIVE ECONOMIC the critics who accused him of paltry amount from these economic OFFENDERS BILL 2018 dragging his feet in the battle against offenders. THROUGH THE TWO corruption, though, to be fair, all the HOUSES OF PARLIAMENT. scams now surfacing – be it Mallya’s But that will change going forward. shenanigans or Nirav Modi-Mehul In keeping with its promise to curb Choksi’s disappearing act and many corruption, particularly at high The law was first announced by others – had their genesis during the levels, and its pledge to weed out Union Minister Arun Jaitley in his UPA years. the shadow (black in local parlance) Union Budget 2017 to rein in willful economy, the Modi government defaulters such as Mallya. But since Painful but necessary structural has steered the Fugitive Economic the relevant bill could not be passed reforms such as demonetisation and Offenders Bill 2018 through the two by Parliament, the Modi government Goods and Services Tax (GST) have houses of Parliament. decided not to waste time and instead already brought large numbers and promulgated an Ordinance to bring huge amounts of hitherto unreported In a nutshell, the Bill, which will the law into force. transactions within the tax net. become law when the President of India signs it, targets loan defaulters, Mallya, who had mocked the The law to confiscate the assets of fraudsters and those who break government of India on television, fugitive economic offenders is the laws on taxes, deal in black money asking the authorities to “dream on” latest in a long list of initiatives taken and amass benami properties. The about recovering the billions of dollars by the Modi government in its efforts minimum money threshold for the he owes banks and other creditors, to weed out crimes, resulting primarily law to take effect is Rs 100 crore and even dubbed the charges as from crony capitalism that was ($15 million). “politically motivated”, has begun encouraged by earlier regimes. displaying signs of nervousness.
54 August 2018 Indian Global Business
‘India Global Business’ is the flagship publication of London-based media and publishing house, India Inc. The publication offers in-depth analysis, news and expert opinion on business, trade, policy initiatives and foreign direct investment in and out of India. The magazine has a readership of over 100,000 business and policy leaders worldwide.
www.indiaincgroup.com August 2018 55