THE NORTHERN POWERHOUSE AND INDIA UNLOCKING THE OPPORTUNITY Foreword
When Prime Minister Narendra Modi met with Prime India has had a phenomenal growth story to share in Minister Theresa May in London in April, they agreed to recent years; one that has been driven by its various forge a dynamic new India-UK Tech Partnership. states competing to increase the ease of doing business, and by better connectivity throughout the country. Leveraging future-tech to build on the UK’s historical trading ties with India is a key priority for the The UK’s economic relationship with India remains Department of International Trade. As Her Majesty’s strong and with over 800 Indian companies expanding Trade Commissioner for South Asia, I feel connectivity their footprint across the UK, the Confederation of – bringing people closer together – is key to realising Indian Industry (CII) encourages Indian companies to this ambition. continue to seek out opportunities across the UK, and in particular the North of England. The public private This November, the North of England will get even partnership, Manchester India Partnership, has acted closer to India: Jet Airways will inaugurate the first direct as a gateway to many Indian companies looking to the flight between Mumbai and Manchester, connecting the Northern Powerhouse. economic capital of the fastest-growing major global economy to the UK’s largest economy and the Indian Connectivity remains at the core of a roadmap for diaspora outside London. The benefits of connectivity future opportunities. The new direct flight connection should be felt far beyond the cities themselves and from Mumbai to Manchester is only the beginning of a ultimately strengthen engagement between regions and new era in increased business opportunities between wider national economies. India and the North of England. This publication lays out the current scope and future opportunities for the This publication highlights the scope and scale two geographies across key sectors – energy, health, of potential collaborative opportunities between advanced manufacturing and digital – mapping the commercial organisations and academia in both markets capabilities across the region with opportunities in with complementary objectives and capabilities. various states in India. Enhanced travel links will contribute to growing numbers of tourists for both the UK and India, strengthening CII is proud to have been a part of this effort to present cultural ties and improving mutual understanding. a roadmap of opportunities for India and the UK. The publication not only highlights but confirms our long- The new link will bring with it the potential to standing confidence in the strength of the UK-India significantly enhance existing regional ties and to enable economic relationship. The time is opportune for the new partnerships to grow and develop. Initiatives such two countries to encourage this partnership and grow as this are just the beginning in the development of an together. even more fruitful relationship between the Northern Powerhouse, the UK, Maharashtra and India. Investors, Chandrajit Banerjee businesses and ultimately local residents will benefit Director General, from these opportunities. The road ahead is promising. Confederation of Indian Industry (CII)
Crispin Simon UK Trade Commissioner to India Introduction
It is my pleasure to introduce this important study, which identifies the 1 opportunities for collaboration between the North of England and India.
The publication of this report The reason we attach so much This work will not just benefit coincides with the launch of direct importance to securing links to Greater Manchester, but the North flights between Manchester Airport markets like India is not just to give as a whole, as identified in this and Mumbai, India’s economic our passengers greater choice, but report. Furthermore, it will make capital, which will be pivotal to these because of the wider impact such a significant contribution to the opportunities being exploited. connectivity has on the prosperity of creation of a balanced and outward the region. facing UK economy, at a time when Securing a direct route to India its relationship with key international was one of the region’s long-term We know that direct routes facilitate markets is more important than priorities and many years’ work increased flows of people, goods ever before. has gone into building the case and services, as barriers to trade, for a service and finding the right investment and knowledge exchange I would like to place on record my airline partner. That is why I am are removed. As more people travel thanks to all of the organisations delighted to be working with Jet between two places, awareness of that have helped get the Airways on this new service, which what makes them good places to Manchester India Partnership is of huge significance to our region visit and do business with is raised to where it is today, and would for a number of reasons. Jet has considerably. also urge any others interested in recognised what we already knew: contributing to our common goal that the North has a fantastic array What this report does is identify of forging closer ties with India to of economic, sporting, cultural, where the most significant contact us, so we can explore ways academic and natural assets. opportunities for economic and of working together. cultural collaboration lie. It sets out Coupled with the fact there are how the Manchester-Mumbai route I hope you enjoy this report and look more than 200,000 people of Indian – and other new services that follow forward to working with all of our origin living in the North, in addition – can serve as a catalyst for growth partners on further strengthening to over 100 Indian businesses, it and prosperity, enabling the North the relationship between is clear that the North of England to tap into one of the world’s fastest Manchester, the North and India. can more than sustain a regular growing economies and giving India direct air route to India. Indeed, that direct access to everything this part Andrew Cowan has already proven to be the case, of the world has to offer. CEO, Manchester with demand being so strong since Airport; news of the service was announced, The catalytic impact of direct Chair of the that Jet has already increased its connectivity sits at the heart of Manchester India frequency from four to five times a the rationale for establishing the Partnership week. Manchester India Partnership, which I am honoured to chair. It has brought together public and private sector organisations, who have united behind the common goal of forging closer ties with India. Executive summary
UNLOCKING THE OPPORTUNITY unlocking substantial bilateral trade Tourism – up to £60m in GDP: 2 Direct flights between Manchester and investment opportunities. Just as business travel will become and Mumbai commence on 5th Notable existing examples of Indian easier, leisure travel between the November 2018, providing a real investment into the North include North and India will become simpler, catalyst for economic growth. the upgrade of the Novelis aluminium stimulating significant additional recycling plant in Warrington, tourism demand, particularly in The alignment of the North’s Piramal Enterprise’s expansion the context of a rapid growth in economic strengths with India’s of its Morpeth hormonal product the number of Indian citizens sectors of focus - demonstrated manufacturing facility, and the arrival obtaining passports and looking by key strategic initiatives such as of IT companies Tech Mahindra and to travel abroad. A highlight will be Digital India, Make in India and Clean 42Gears in Greater Manchester. the Cricket World Cup in 2019 in Energy India – makes the North England and Wales – with three of an ideal collaborator with India. A Research and development – the 11 venues being located in the stronger partnership between the up to £20m in GDP: Enhanced North, and with a semi-final and North and India also makes sense In connectivity will facilitate knowledge India versus Pakistan taking place at the context of the UK’s industrial and sharing between the North and Old Trafford, tourism in the North is export strategies, and initiatives such India, which will in turn augment set to see a significant spike. as the UK-India tech partnership. the capacity on both sides to conduct innovative research and The successful delivery of economic Given the economic and strategic development, and to use cutting- benefits depends on the actions of complementarities, the Manchester- edge technologies effectively. The industry, academia and government Mumbai route represents a fantastic University of Sheffield Advanced in both the UK and India. Initiatives opportunity to propel the North’s Manufacturing Research Centre’s like the Manchester India relationship with India forwards and, collaboration with PTC Industries Partnership have brought the public in doing so, further the interests of in opening India’s first ever and private sectors together to forge both the UK and India. titanium casting facility serves as alliances with similar bodies in India, a prime example of the benefits of such as the CII and UKIBC. knowledge sharing, with Northern SIZE OF THE PRIZE expertise generating a real impact on Such collaborative efforts across Indicative analysis based on the Indian industry. the two countries, in addition to the existing literature on the benefits of involvement of key governmental connectivity, and on recent evidence Education and skills – up to £20m departments ranging from the of the economic impacts from the in GDP: A growing number of Indian Department for International Trade introduction of similar international students are pursuing studies in and the Foreign and Commonwealth routes such as Manchester-Beijing, the North, whilst more and more Office to the Department for suggests that the size of the prize UK students are looking for career Transport and the Home Office, is significant: the new Manchester- opportunities abroad. The new will be key in unlocking the Mumbai route could support around route will accelerate this trend and opportunity between the North and 2,000 jobs and unlock up to £400m facilitate new opportunities for India. With the right support and in GDP for the North over the next students on both sides. Notable engagement from all parties, there is five years, including: progress on this front includes the a real possibility that the economic University of Bolton’s partnership impact will grow over time beyond Trade and investment – up to with the Karnataka State Higher the £400m. £300m in GDP: Better connectivity Education Board and the University will decrease the logistical of Salford’s partnership with the constraints faced by Northern Indian Institute of Management and Indian businesses, facilitating Bangalore, one of Asia’s leading new commercial relationships, and business schools. The opportunity
Manchester to Mumbai 3
DELHI NEWCASTLE 130,000 Passengers annually SUNDERLAND MUMBAI HYDERABAD LEEDS HULL PUNE LIVERPOOL SHEFFIELD CHENNAI MANCHESTER BANGALORE
Removes barriers, decreases logistical costs
15m 7.5m 1m 1.3 billion $2.6 trillion 520m inhabitants jobs businesses inhabitants GDP labour force
2.6m 23 19% 799 recent STEM universities of UK GDP universities graduates £400m GDP
Economic impact £60m £170m £130m £20m £20m Tourism Investment Bilateral trade Education Research and The route has the and skills development potential to stimulate up to £400m in additional GDP for the 2,000 North over the next Jobs five years – supporting around 2,000 jobs
Opportunities in Digital and Energy and Health Advanced complementary information sustainability innovation manufacturing technology sectors Manchester to Mumbai: a catalyst
The new Manchester-Mumbai route will bring India and the North closer together 4 than ever before, generating substantial new opportunities for collaboration.
NEW CONNECTIONS As has been seen with similar Indian FDI created approximately The first direct flight between India international routes launched in 6,000 jobs in the UK in 2017-18; and the North of England launches recent years, it is anticipated that more than from any other country on 5th November 2018. This new the Manchester-Mumbai direct outside of the USA and Germany. service by Jet Airways will initially route will stimulate a significant Conversely, the UK is also active in operate five days a week between volume of additional demand. India, with nearly £1 billion invested Mumbai and Manchester Airport, This is likely to lead to increases in 2016-17, the sixth largest sum potentially connecting in excess of in service frequency and to the globally. 10,000 passengers per month. introduction of new direct routes to other parts of India, such as a The UK is the most popular long- The route will strengthen existing potential Manchester-Delhi route, a haul destination for Indian nationals and create new ties between journey that is already being made after the USA, and India is the most Manchester, the UK’s largest indirectly by 170,000 passengers. popular long-haul destination for economic hub outside of London, The Manchester-Mumbai route UK residents, also after the USA. and Mumbai, the economic capital represents the first key step towards The new route will make the North of India, whilst having significant a wider improvement of Indian- and India more accessible than ever impacts in the adjoining areas. Northern connectivity. before, capitalising on the existing popularity of both destinations Manchester Airport’s role as the to generate substantial additional North’s primary international gateway ECONOMIC BENEFITS revenues from tourism for the North will ensure the benefits of the Shorter travel times bring distant and India. connectivity will spread to all parts places closer together, making it of the North, including key cities easier for governments, businesses, The introduction of the new Jet such as Liverpool, Leeds, Sheffield, investors and citizens to collaborate. Airways direct route will catalyse Hull and Newcastle, whilst onward further growth in tourism, FDI, connectivity at Mumbai’s Chhatrapati As well as increasing the number trade and innovative collaborations Shivaji Maharaj International Airport of passengers, the introduction of between India and the North which will allow access to 45 domestic commercial routes will facilitate air in turn, will make the economic case destinations including key economic freight and raise trade volume – for further direct routes between hubs in India such as Delhi, Bangalore evidence shows a 40% increase in the North and India, initiating a and Chennai. exports from Manchester Airport to virtuous circle of connectivity-driven China from the recent introduction of growth across both geographies. a direct international route between Manchester and Beijing.
Air connectivity also boosts foreign direct investment (FDI) by easing logistical constraints and raising awareness of the location as a potential investment proposition; as such the new route is expected to stimulate further bilateral investment. The Northern Powerhouse
With its rich history, diverse culture, and an economy that would rank as one of 5 Europe’s 10 largest, the North is a region of great potential and importance.
The North comprises some of the This was the stimulus for the The North of England is home to: UK’s most important economic ongoing Northern Powerhouse centres, including Sheffield, (NPH) initiative, introduced by Newcastle, Manchester, Liverpool, the UK government in 2014. The Leeds and Hull. These cities were purpose of the NPH is to catalyse the bedrock of the Industrial the further expansion of the Revolution and have a rich heritage Northern economy through a series 15m in innovation and manufacturing. of strategic measures. inhabitants The economy of the North contributes more than £300 billion In particular, the NPH initiative aims to the UK economy, a figure which to unlock the North’s economic would rank it as the eighth largest potential by enhancing domestic economy in Europe, exceeding the connectivity and transport, skills scale of major national economies base and educational attainment £330 billion 1m such as Belgium and Sweden. of the workforce, enterprise and annual economic businesses innovation activity, and international output The North offers ‘quality of life’ and trade and investment. is home to renowned attractions such as Hadrian’s Wall, the Lake In light of these objectives, a District and the Peak District; myriad stronger partnership with India museums, galleries and theatres makes great sense. The new direct capturing the region’s culture. route from Manchester to Mumbai 19% of the UK’s economic offers a perfect opportunity for output The North also has major sporting the NPH to engage with the best and all-purpose venues hosting of Indian industry and academia to large-scale entertainment events attract and develop skilled workers; such as Leeds Festival, Premier to collaborate on academic research League and Champions League and innovative business ideas; football, and the upcoming 2019 ICC and to ultimately promote further 19% 23 of the UK’s universities Cricket World Cup. bilateral trade and investment as exports part of the development of a closer At the same time, there is still long-term relationship between scope to build on these strengths India, the North, and by extension, further to fully realise the economic the UK. potential of the North. Manchester Airport third busiest in the UK, 18th busiest in Europe Northern capabilities
The Northern Powerhouse Independent Economic Review (NPIER) highlighted 6 the key economic sectors in which the North is most competitive.
The NPIER identified four ‘key’ In Hull, Siemens has invested At a broad level, each of the North’s economic sectors in which the North £160m in Green Port Hull for core capabilities is complementary exhibits expertise and international wind turbine production, helping to a high-priority strategic objective competitiveness: advanced the region become a world leader for the Indian government. manufacturing, energy, digital, and in renewable energy. In addition, Specifically, the North’s deep health innovation; which are enabled Sellafield forms part of a vibrant set expertise and capabilities in the by the North’s additional strengths of nuclear supply chains connecting advanced manufacturing and digital in financial and professional Cumbria with Cheshire and beyond, sectors make it a key potential services, logistics, and education. including four of the six locations collaborator to push forward major of the National Nuclear Laboratory economic initiatives under the Modi Strengths in these four key sectors – state-of-the-art facilities for government, such as ‘Make in India’ have been identified in all parts cutting-edge research into all and ‘Digital India’. Furthermore, the of the North, but some notable aspects of nuclear energy and North’s status as an international examples of particular specialisms technologies. leader and innovator in the areas can be highlighted. of health and energy place it in a In digital, a number of city regions prime position to assist India in For example, Sheffield City Region’s have developed clusters of activity, tackling significant challenges in Advanced Manufacturing Park most notably Manchester, which sustainability and the provision of (AMP) has seen industry-leading has attracted investments from the healthcare. companies such as Boeing, McLaren likes of Amazon, Google, Jaguar and Rolls-Royce cluster together Land Rover, and Tata Consultancy In light of these complementarities, there to take advantage of the Services in recent years, with in addition to contextual factors region’s excellence in research and particular R&D emphasis on key such as the existing historic development. Switching focus topical themes such as big data and relationship between the North to academia, the University of the internet of things (IoT). and India, and the imminent Manchester’s continued pioneering establishment of a direct route that research into the two-dimensional Finally, in health innovation, the will bring the two geographies closer material graphene is another North is home to many leading together than ever before, the North particular highlight research centres in the life sciences is uniquely positioned to emerge demonstrating the sector, across Liverpool, Leeds, as one of India’s most valued and North’s excellence Manchester and Newcastle. The prominent economic partners. in highly advanced North’s particular strengths in manufacturing. digital health solutions – such as the Connected Health Cities programme – and in the manufacture of pharmaceuticals place the region at the forefront of the UK and Europe. REGIONAL CAPABILITIES AND SECTORAL STRENGTHS 7
NEWCASTLE
SUNDERLAND
KEY:
AIRPORT
DIGITAL AND INFORMATION TECHNOLOGY HUBS
ENERGY AND SUSTAINABILITY HUBS
HEALTH INNOVATION HUBS LEEDS ADVANCED MANUFACTURING HUBS HULL
LIVERPOOL SHEFFIELD MANCHESTER
2015 FIGURES (2011 PRICES)
£9.2 billion £8.9 billion £17.5 billion £33.4 billion GVA GVA GVA GVA £71,000 £77,000 £31,000 £58,000 PRODUCTIVITY PRODUCTIVITY PRODUCTIVITY PRODUCTIVITY 129,580 115,580 564,520 575,860 JOBS JOBS JOBS JOBS
2050 PROJECTED FIGURES
£41.1 billion £15.3 billion £43 billion £50.8 billion GVA GVA GVA GVA £190,000 £170,000 £67,000 £178,000 PRODUCTIVITY PRODUCTIVITY PRODUCTIVITY PRODUCTIVITY 216,320 90,000 641,790 285,390 JOBS JOBS JOBS JOBS
AIRPORT
DIGITAL
ENERGY
HEALTH INNOVATION
ADVANCED MANUFACTURING Indian potential
India is the fastest growing major economy in the world. Its potential cannot 8 be understated.
Given the scale and diversity of its India has established itself in recent – offer opportunities for Indian economy, India would be a valuable years as one of the UK’s primary students to further develop their partner for any country or region, sources of foreign direct investment skills. but its existing ties to the UK make (FDI). In 2017-18, Indian FDI into the it particularly suitable to collaborate UK created around 6,000 new jobs – The North can support Indian with the North. more jobs created through FDI from upskilling through its academic any country outside of the USA and institutions and businesses. It can Germany. also benefit from the knowledge TRADE AND FDI exchange by attracting the best India is the UK’s seventh largest The introduction of the direct Indian students and workers to trade partner in goods outside route between Manchester and contribute to its growing skills- of Europe (sixth in share of UK Mumbai will serve to bring the based economy. imports; 11th in exports). It is also North and India closer together. the third largest exporter of services As a part of this process, investors, to the UK outside of Europe; with entrepreneurs, and businesses TOURISM particular focus on IT services on both sides will become better Long-haul trips from India have and professional services. acquainted with each other’s been increasing due to income and offerings and talents, facilitating the population growth. The number of pursuit of collaborative endeavours international journeys made from and, in turn, stimulating further India, (leisure and business) has bilateral trade and investment grown by an average of 10% per year between the two geographies. over the last 10 years; increasing the total figure from 8.3m journeys in 2006 to 21.9m in 2016. SKILLED WORKFORCE An essential foundation of the The UK is the second most popular Indian economy is the continuous long-haul destination for Indian growth of the skilled tertiary- citizens after the USA with over educated workforce. India’s 400,000 visits per year. The existing increasingly service-based economy demand primarily funnels through is dependent on its strengths in London, however it is expected that information technology, a vibrant the new direct route will propel the start-up culture, and emerging popularity of the UK even further R&D competitiveness – all of which by encouraging Indian visitors require high quality human capital. to consider Manchester as an alternative entry point to the UK, The world-class universities of the unlocking Indian tourism for the region coupled with major research whole of the North. projects conducted in conjunction with the private sector – such as Aura, a collaboration on offshore wind energy led by the likes of the University of Hull and Siemens DELHI • Digital and IT – growing culture of innovation, competing for the mantle of the start-up capital of India, with Delhi start-ups raising $4.3 billion in funding in 2017 alone (second only to REGIONAL CAPABILITIES AND SECTORAL STRENGTHS Bangalore’s start-ups). 9
• Tourism – home to three UNESCO MUMBAI World Heritage Sites; India’s • Financial services – the most visited city, with around 6m commercial capital of India; international tourist arrivals annually. responsible for 40% of India’s foreign trade; home to 10th and 11th largest stock exchanges in the world.
• Information technology – the birthplace of the Indian IT industry; home to the largest IT company in India – Tata Consultancy Services (ranked as the most innovative company across all sectors in India by Forbes); home to the Indian Institute of Technology Bombay (IITB) – ranked by QS as the top university in India and a top 100 university worldwide for computer sciences.
HYDERABAD • Health and life sciences – Hyderabad is home to many of India’s leading organisations and research institutions in the biomedical sciences field, including the Indian Heart Association, PUNE the National Institute of Nutrition, • Education – home to 10+ and the Indian Institute of Chemical universities, attracting students Technology. across India, Middle East and East Africa, as well as several major research institutions including the Indian Institute of Science Education and Research and BANGALORE CHENNAI the Centre for Development of • Digital and IT – dubbed the ‘Silicon • Manufacturing – India’s leading city in Advanced Computing. Valley of India’; employs 2.5m IT the automotive industry, responsible professionals (35% of national for approximately a third of India’s total • Information technology – home total); home to four of India’s top ten vehicle and component production; to leading IT multinational Tech largest IT companies (most notably home to leading global manufacturers Mahindra; also home to the Rajiv Infosys and Wipro); home to India’s such as BMW, Ford, Daimler, Hyundai Gandhi Infotech Park, a 2,800- largest start-ups (Flipkart, Ola Cabs); and Nissan. acre purpose-built area housing accounts for the greatest share of over 800 IT companies of various India’s IT service exports; India’s most • Information technology – second- sizes. mature and lucrative e-commerce largest exporter of IT services market. after Bangalore; leading regional manufacturer of computer electronics; • Advanced manufacturing – home home to TIDEL Park – one of the of the Department of Space, and largest IT parks in Asia. its primary R&D arm specialising in developing satellites and launch vehicles, the Indian Space Research Organisation; India’s leading hub for emerging biotech industry. Unlocking the opportunity
Enhanced connectivity between the North and India could unlock up to 2,000 jobs 10 and £400m in GDP for the North over the next five years.
As highlighted in the Transport for exporter of IT services globally with UNLOCKING THE OPPORTUNITY: the North’s International Connectivity an annual growth rate, since 2000, ENERGY AND SUSTAINABILITY Commission Report, particularly of 16%; faster than any other major India is the world’s third-largest in the post-Brexit landscape, economy. consumer of energy and demand will international connectivity will be continue to grow. In order to meet critical in maintaining the North’s India is home to more start-ups than this growing demand and honour prominence on the global stage. any country outside of the United India’s commitments under the States – new creative ideas and Paris Agreement, the government Drawing on the existing literature solutions are being developed and is making efforts to diversify from on the economic benefits of direct tested constantly in hubs such as conventional non-renewable energy. connectivity, and on recent evidence Bangalore, Chennai and Hyderabad. of impacts from the introduction of To this end, PM Modi has placed similar routes such as Manchester- Given the abundance of particular emphasis on India’s Beijing, the new direct route between entrepreneurship in India, the North production of wind and solar energy. Manchester and Mumbai could will benefit from taking advantage India has enormous untapped generate up to £400m for the North of the enhanced connectivity to potential in wind power – despite over the next five years, comprising: intensify such efforts to bring ranking fourth in the world with an • £170m in investment the best of India to fortify the installed wind power capacity of 33 • £130m in trade North’s position as an international gigawatts, it has the potential to • £60m in tourism technology hub. Efforts are already reach a maximum capacity of 302 • £20m in education being made to identify and attract gigawatts. As an active member • £20m in research and development high-potential Indian tech companies of the International Solar Alliance, to the North, through initiatives such India is also working to leverage The enhanced connectivity will as the Deloitte Tech Fast 50, with developed nations’ finance to grow naturally foster closer relations and recent success stories such as Tech its own solar capacity to 1,000 GW reduce barriers between the North Mahindra’s arrival in MediaCityUK, by 2030. and India, however, unlocking the full and these should intensify with the £400m opportunity and creating introduction of the new direct route The North is well-positioned to help jobs will be contingent on the active and the removal of key logistical India transform its energy and fuel collaboration of business, academia, constraints. portfolio, particularly contributing and policymakers alike, notably in with its expertise in renewable the key sectors identified below. For Indian businesses, the North energy cluster formation, innovation represents a cost-effective entry in offshore wind generation, as point to the UK outside of London well as growing expertise in battery UNLOCKING THE OPPORTUNITY: that offers a foothold in a mature technology. Equally, Northern DIGITAL AND INFORMATION and large digital market; and access energy operators entering new TECHNOLOGY to a diverse talent pool consisting markets may be open to exploring The North is a key contributor of students at world-leading investment portfolios worldwide, to the UK’s sustained success in institutions, and professionals with including India. information technology, generating deep expertise in key growth areas approximately £10 billion a year and such as machine learning, internet of employing 18% of the UK’s tech things, smart cities, big data, fin-tech workers. India is the fifth largest and e-commerce. UNLOCKING THE OPPORTUNITY: UNLOCKING THE OPPORTUNITY: UNLOCKING THE OPPORTUNITY: HEALTH INNOVATION ADVANCED MANUFACTURING DRAWING ON THE ACADEMIC 11 In the context of rapidly evolving One of India’s immediate economic INSTITUTIONS demographics and rising healthcare objectives is to consolidate its Beyond these key sectors, India expenditure, the affordability strengths in manufacturing and to and the North are home to world- and provision of healthcare are enhance its competitiveness in the class academic institutions, which key issues in the Indian political sector. This is reflected in PM Modi’s should be engaged to promote landscape, as evidenced by the ‘Make in India’ initiative which aims knowledge exchange, and to recent high-profile launch of PM to create 100m additional jobs in supplement industry relationships. Modi’s flagship health insurance manufacturing and to increase its With a significant number of scheme, dubbed ‘Modicare’. The share of GDP to 25% by 2022. Indian students in the UK and the North’s excellence in the life In light of this strategic objective, North, UK students looking for sciences, with particular expertise and the North’s historic and current opportunities abroad, and given in digital health innovations and status as an international hub the existing historic cultural ties, pharmaceuticals, make it a suitable for advanced manufacturing, the there is great potential for further partner to work with India on potential for collaboration here is crossovers between academic navigating its key challenges. obvious and significant. institutions on both sides.
There are over 1,000 life science The North’s expertise in Notable progress includes the recent businesses, which collectively manufacturing dates back to the partnership between Tech Mahindra account for £17.5 billion of the Industrial Revolution, and over and the University of Salford, and an North’s £304 billion economy and time, it has evolved to encompass upcoming collaboration between the employing over 570,000 people, a large variety of disparate sectors, University of Bolton and the Karnataka including 38,000 highly-skilled with current strengths in areas State Higher Education Board. professionals. including aerospace, automotive, pharmaceuticals, healthcare and These collaborations are A particular Northern capability of energy. positive initial steps in the right interest for India is digital health. direction. Academia underpins This is exemplified by the Connected Northern expertise can help competitiveness across all of the Health Cities programme, which unlock the enormous potential of sectors alluded to thus far by draws on resident and patient India’s manufacturing sector. In producing the highly skilled workers data across the North and uses addition to cutting-edge academic and facilitating the cutting-edge advanced analytics to simulate and research, such as the University of R&D and innovation required. model health ecosystems, allowing Manchester’s ongoing world-leading more informed strategic decision- work with the two-dimensional Therefore to truly capitalise on, and making, as well as cost reductions material graphene, the North’s to enhance, Northern and Indian through a better approximation extensive industrial experience and capabilities, it is imperative that both of procurement needs. This kind familiarity with capabilities such as geographies supplement industrial of technology-driven solution for AI, machine learning, 3D printing, collaborations with a continued reducing healthcare costs is of and advanced metal fabrication effort to engage academia, with a immediate and direct relevance could be leveraged to encourage particular emphasis on leveraging to India in the context of the the adoption and development of the expertise of students and aforementioned challenges. these technologies and capabilities academics at leading institutions on in India, with anticipated long-term both sides. benefits for the productivity of India’s manufacturing sector, and the prominence of Northern industry. The North in action
Across each of the key sectors identified, the North is already working with Indian 12 businesses to capitalise on the joint opportunities.
DIGITAL AND INFORMATION in 2016 – Greater Manchester CASE STUDY: TECH MAHINDRA TECHNOLOGY epitomises the North as a great The North contains a number of place for companies of all sizes to Originally founded in 1986 as a joint the UK’s most significant digital operate and grow. Tech Mahindra venture between BT and Mahindra and information technology and 42Gears are perfect examples Group, Tech Mahindra is one of India’s clusters with particular strengths of two Indian businesses of vastly 50 largest IT services companies, in e-commerce, high-performance different scales that have both employing more than 110,000 people computing, cognitive computation, successfully transitioned into the across 90 countries, with an estimated data analytics, simulation/modelling, North joining Tata Consultancy FY18 revenue of £3.6 billion. and machine learning; each of which Services as part of an emerging has enormous potential to cross cluster of Indian tech companies. In April 2018, Tech Mahindra over and complement other sectoral bolstered its existing UK operations strengths of the Northern economy. CASE STUDY: 42GEARS by officially opening its new office in The North’s digital economy is MediaCityUK in Greater Manchester, thriving, and it is home to seven of Founded in 2009, 42Gears is an Indian a purpose-built innovation hub the UK’s 27 tech clusters. Some SME software development company for media and digital enterprises, of the North’s prime locations for that enables businesses to manage serving as the headquarters for their digital and technology include Hull, employees’ usage of company mobile Northern operations. Liverpool, Leeds, and Sheffield. and desktop devices to maximise productivity and ensure data security Since launching in the North, Tech Greater Manchester is home to the in a cost-efficient manner. Mahindra has since announced a largest creative, digital and tech partnership with the nearby University hub outside of London. The region Headquartered in Bangalore, of Salford to collaborate on various is recognised as one of Europe’s Karnataka, sustained rapid growth has tech initiatives such as smart cities leading digital and innovation hubs, quickly garnered 42Gears’ international and the internet of things (IoT). with key strengths in cybersecurity, recognition – including Deloitte’s Tech e-commerce and fintech. Fast 50 India (2015, 2016, 2017); Ashish Pandey, VP and client and ‘Gold’ tier partner of Samsung’s executive at Tech Mahindra Salford, With the presence of a wide array Enterprise Alliance Program in said: “Greater Manchester is of multinationals in addition to an 2016. This international recognition flourishing and is an ideal location to established start-up culture – with led to an introduction to MIDAS, establish our Northern operations nearly 1,600 tech start-ups formed Manchester’s inward investment centre. In addition, Manchester is a agency, and in August 2017, after technology hub and is ranked in the careful deliberation, 42Gears chose to top 20 European digital cities, with open an office at Piccadilly House, in an excellent talent pool to draw from, the heart of Manchester. being home to four universities and 99,000 students.” A year since their move into the North, 42Gears has increased its global client base from approximately 6,000 to 9,000, fulfilling expectations and portending an extremely bright future. ENERGY AND Aura is a project CASE STUDY: NOVELIS SUSTAINABILITY that brings together 13 The North has significant multidisciplinary excellence, Novelis is a subsidiary of Hindalco strengths and expertise in the knowledge, and innovation within Industries Limited, one of Asia’s generation, storage, and distribution the offshore wind and low carbon largest integrated producers of of renewable energy. It has a industries; striving to enhance and aluminium and a leading copper long-standing track record with maintain the current momentum for producer, which is a flagship company low-carbon technologies, including regeneration and position the area of the Mumbai-headquartered Aditya nuclear energy, offshore wind as a global centre for the transition Birla Group. energy, and a growing expertise in to a low carbon economy. Some battery technologies. of the key names the University of The company is the world leader in Hull is already bringing together aluminium rolling and recycling and One of India’s top priorities under to achieve its aims are systems has committed significant investment the Modi government is realising manufacturing expert Siemens to upgrade its plant in Warrington an efficient and effective transition Gamesa Renewable Energy, and in the North West; enabling it to towards a more renewable energy world-leading renewable energy improve processing volumes by more system due to increasing pressures developer Ørsted; which will provide than 250%. on demand stemming from a huge opportunity for collaboration urbanisation, income and population with Indian energy companies. The Novelis Warrington plant also growth. serves as a launch production site The North is already collaborating for the industry’s first independently India’s challenge is significant and with Indian businesses within certified, high-recycled content the bulk of public investment in the sector, as evidenced by the aluminium designed specifically for Indian infrastructure is expected North West’s involvement with the beverage can market. to be diverted to energy, transport Novelis, a subsidiary of Mumbai- and urban improvement. As a result, headquartered Hindalco. the UK energy sector is attracting a significant amount of foreign direct HEALTH INNOVATION investment. The health and life sciences sector accounts for £17.5 billion of the The North East, which includes the North’s £304 billion output in cities of Sunderland and Newcastle, terms of GVA, and is forecast to has particular strengths in relation grow by over 40% by 2030. In total, to wind and low carbon industries, 570,000 people are employed in the and one initiative that is primed sector across the North, 38,000 of to benefit from this opportunity is whom are high-skilled, with 48,000 Aura, a working group of key industry supported in the private sector and partners, academia, national, local its supply chain. and regional government – led by the University of Hull. There are more than 1,000 health and life science businesses in the North, and 97% of them are SMEs; this strong supply chain has played a large role in attracting inward investment into the sector, such as the £550m 10-year investment from AstraZeneca in Cheshire. Health innovation is widespread THE NORTH IN ACTION
across the North, demonstrating The North’s strengths in life ADVANCED MANUFACTURING 14 international competitiveness sciences are recognised by Indian As the epicentre of the Industrial across a number of key specialisms, industry, with Piramal Enterprises’s Revolution, the core industrial including digital health/health involvement in the North East activities of manufacturing and analytics, pharmaceuticals, medical serving as a prime example. engineering are at the heart of the devices, drug discovery, and health North’s history and its economic devolution. legacy. Whilst the North, in line CASE STUDY: PIRAMAL with wider trends, has gradually Given India’s rapidly expanding ENTERPRISES transitioned to a more service-based pharmaceutical market and its economy, the region has leveraged growing demand for the provision Piramal Enterprises, the Mumbai- and advanced its expertise of high-quality, cost-efficient headquartered medical packaging throughout the years to retain its healthcare, the North’s all-round company, invested $11m in its competitive advantage and status in excellence in life sciences and its Morpeth facility in the North East, these fields. expertise with innovative, cutting- which enabled the business to triple edge healthcare solutions could be its production capacity for hormonal What the North lacks in scale and leveraged to further develop the products, including contraceptive pills breadth now in comparison to collaborative relationship between and hormone replacement therapies, the rest of the world, it more than the Northern Powerhouse and India. by around two billion tablets per makes up for with quality and depth, year. The new suite now houses and the region’s capabilities with For example, Liverpool City formulation, packaging coating and respect to advanced manufacturing Region is one of the UK’s leading tableting equipment. – as attested to by the presence geographies for industrial activity of industrial giants such as Boeing, and academic expertise in the health Vijay Shah, Piramal Enterprises’ Rolls-Royce, Siemens, Nissan, and and life sciences sector. Liverpool Executive Director and COO, said: GSK – are nothing short of world- has the largest number of specialist “The production of hormonal products class. hospitals and health centres in the is a highly specialised, niche area. UK outside of London, as well as the The Morpeth facility is our Centre of Turning to India, one of the Modi largest bio-manufacturing centre Excellence for these products and this government’s top strategic aims is in Europe; home to companies expansion will greatly enhance our to upskill the Indian manufacturing including AstraZeneca, Medimmune, offer and potential for growth in this sector and to enhance its global Allergan, Seqirus, Eli Lilly, Bristol- space.” competitiveness as part of the Myers Squibb, and Teva. The ‘Make in India’ initiative. The region also has more than 8,000 continued importance of this aim, life science students, 10,000 life and the UK’s role in achieving it, was science professionals, and demonstrated in PM Modi’s recent over 100,000 healthcare visit to the UK in April, when a desire workers. for greater collaboration in advanced manufacturing was expressed on both sides. CASE STUDY: PTC INDUSTRIES CASE STUDY: GRAPHENE 15 In October 2017, Cti, the commercial Graphene, the world’s first 2D castings arm of the University of material, was first isolated at the Sheffield Advanced Manufacturing University of Manchester in 2004. Research Centre (AMRC), assisted It has been nicknamed the “wonder Indian foundry group, PTC Industries, in material” thanks to its impressive establishing the Indian subcontinent’s properties; being 200 times first ever titanium casting facility in stronger than steel, the world’s Lucknow, Uttar Pradesh. most conductive material, flexible, transparent and impermeable. Cti’s technical development team provided critical support with the While initial demand has focused on basic titanium process technology, academic research and prototype commissioning, layouts, equipment development, the market is projected Given these contextual factors, the design and specifications for the new to be worth almost £800m by 2023, North is set to play a critical role titanium foundry, which is already with a five-year compound annual in the uptake and development producing high-integrity castings in growth rate (CAGR) of 47.1% from of advanced manufacturing key international markets, including 2018 to 2023. technologies and processes in Indian valves for the USA and European oil industry across a variety of sectors and gas sectors. Cti and PTC are now in Manchester has the highest spanning aerospace, automotive, discussions with the Indian Institute of concentration of graphene expertise electronics, and pharmaceuticals. Technology (IIT) to assist with a project in the world with over 250 researchers that will accelerate the development working on graphene and related 2D A great example of how the North is of a Technical development corridor in materials. The city is home to the already using its technology-driven the Lucknow/Kanpur area. National Graphene Institute (NGI) and capabilities to support and advance the Graphene Engineering Innovation the Indian manufacturing industry, is The AMRC was established in 2001 as Centre (GEIC) which will take products the collaboration between Castings a £15m collaboration between Boeing from research and testing to scale up Technology International (Cti), the and the University of Sheffield and production. University of Sheffield Advanced is one of the UK’s leading centres of Manufacturing Research Centre and excellence for advanced manufacturing In response to strong interest PTC Industries. across the aerospace, automotive, from Indian businesses regarding energy, medical and infrastructure the exploitation of graphene, a sectors. Drawing on Sheffield’s historic delegation led by the Department for industrial and academic expertise in International Trade (DIT), recently metalwork, the AMRC owns one of travelled to India to promote the use Europe’s leading aerospace castings of graphene ahead of the opening facilities, and is in possession of one of the GEIC on 10th December. of few furnaces worldwide that are Representatives from MIDAS and capable of producing titanium castings Graphene@Manchester promoted of up to 500kg. the opportunities available to Indian corporates, showcasing how Indian businesses can leverage Manchester’s advanced materials research and innovation assets to “Make in India, Innovate in Manchester”. THE NORTH IN ACTION
TOURISM CASE STUDY: COX AND KINGS 16 The various destination marketing organisations that represent the Due to close cultural ties, Indian A similar tour that ran in 2017/18 regions of the Northern Powerhouse tourists deem Manchester as the with Cox and Kings has successfully are charged with stimulating tourism second most familiar city in the UK, delivered Indian visitors to the within their respective locations, which is evidenced by the 13,000 destination and experienced year-on- working alongside one another to Indian citizens who visited in 2017 year growth. Manchester also hosted further raise awareness of tourism – but Marketing Manchester is an Indian film crew from Travelxp and attract more visitors to the committed to building on this. to film two city travel shows for North. distribution across a global network In partnership with India- of more than 91m homes, including The number of overnight stays headquartered Cox and Kings, the in India. across the Northern Powerhouse world’s longest established travel rose 4.3% in the first half of 2018, company, and Visit Britain, Marketing 2018 has marked a starting point for compared with the same period Manchester is developing marketing engagement with potential Indian in 2017, taking the total to 33.6m. tours of Britain, which start in tourists but following the launch of Visitors to Northern Powerhouse Manchester and take in destinations the direct route between Manchester regions spent a total of £2.3 billion. across the North – allowing tourists and Mumbai, with the support of Jet to explore more of the UK. They Airways, Marketing Manchester will India is one of the key international include: self-drive tours; Manchester develop relationships with key market markets of focus, given its size and city breaks; Flexihol rail tours to contacts and organise a series of emerging trends. In recent years, Manchester, Liverpool, and York; and digital advertising, social media and rapid economic growth and the a fixed departure group tour. The communications campaigns. establishment of new airports and campaign to promote these tours will international routes have driven run January to March 2019 and have a As a result, 2019 is anticipated to a major increase in the popularity value of £200,000. be a transformative year for Indian of international travel among tourism in Manchester and the North. Indian citizens. The total number Next year, six fixtures of the Cricket of international journeys made by World Cup (CWC19) will take place at Indian citizens has grown by an Old Trafford, including a semi-final, average of 10% per year over the and the most-watched fixture in last 10 years; from 8.3m journeys international cricket when India take in 2006 to 21.9m in 2016. This on Pakistan. CWC19 will also provide trend is expected to continue, and Manchester and the North with a the Manchester-Mumbai route will unique opportunity to connect with play a key role in capitalising on this 438m TV viewers from India. growing demand. What next?
Leeds, Manchester, and Sheffield, all have bespoke strategies for India, which 17 reflect the complementary focus areas covered in this report. These local strategies leverage wider strategic initiatives from UK and Indian governments.
LOOKING FORWARD Post-Brexit, the UK will be using opportunity for the North to play a Delivering economic benefits initiatives such as the UK-India critical role in shaping the future of requires a joined-up approach Tech Partnership, the Northern the UK-India relationship. from business, academia and Powerhouse, and the export policy-makers in both the UK and and industrial strategies to drive The launch of direct flights between India – recent success stories and economic growth. Equally, India has Manchester and Mumbai provides a respective economic strategies embarked on a range of initiatives real catalyst for economic growth in highlighted in this report show that including Digital India, Make in India, both the North of England and India. trade, investment, R&D, education Clean Energy India that complement The size of the prize is significant: and tourism are priority themes for the economic specialisms in the the 130,000 passengers using the intervention in both countries. North. route annually could generate up to £400m in GDP for the North The North’s interest in working with Key platforms such as the UK-India over the next five years, supporting India is reflected in the activities of Tech Summit, due to be attended around 2,000 jobs. key dedicated bodies, such as the by the UK’s Secretary of State Manchester India Partnership – a for International Trade and the With the right support from dedicated public/private initiative Indian Aviation Minister, and the government, industry and academia, to connect entrepreneurs and International Business Festival will the prize is there for the taking. businesses, as well as national and provide further opportunity for local government organisations. progress.
Prime Minister Modi’s visit to the UK in April 2018, his first since CONCLUSION 2015, gave way to a wide-ranging The improvement in connectivity discussion with the UK government. between the North and India Among the various topics of represents a significant opportunity discussion, key outcomes included: for both parties to collaborate with, learn from and, ultimately, benefit i) A new UK-India tech partnership one another. to stimulate India’s digital economy Complementarities in economic and strategic aims, the use of a common ii) A new trade partnership to language, and the deep cultural ties promote trade in the life through the Indian diaspora mean sciences and IT sectors that the North and India are well positioned to work together. Given iii) A Statement of Intent to the North’s core economic strengths explore possible cooperation in in the digital, life sciences, advanced advanced manufacturing manufacturing, and energy sectors, this close alignment with the key iv) A new UK-India fund to develop strategic and economic interests green infrastructure in India of both nations presents a major Acknowledgements
WITH THANKS TO OUR CONTRIBUTORS: Department for International Trade Humber Local Enterprise Partnership Leeds City Region Local Enterprise Partnership Liverpool International Business Festival Manchester Airports Group Manchester’s Investment Development Agency Service Marketing Manchester Northern Powerhouse Partnership Ørsted Sheffield City Region Local Enterprise Partnership UK India Business Council The University of Hull The University of Sheffield Advanced Manufacturing Research Centre
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