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EXCLUSIVE BOOK REVIEW PROFILE Not a time to pull up the Winning Partnership: The woman behind calls drawbridge New road for India-UK for ‘Scexit’ by Liam Fox, UK Secretary of ties Nicola Sturgeon, First State for International Trade by Arnab Mitra Minister of Scotland

SPECIAL EDITION

UK & India: Where are we heading?

ur cover story this time is aptly titled ‘Yeh Dosti’. greased. At the same time, India must accept the Indian readers will be familiar with the eponymous compulsions of Her Majesty’s government to respect the song from the iconic Bollywood blockbuster Brexit sentiment, which was, in essence, a vote against O‘Sholay’, which, even 42 years after its release, remains untrammelled immigration. synonymous with undying friendship and renewal of relationships. But movement has been slow. For instance, several months ago Britain’s international trade minister, Dr Liam To dwell a little further on the renewal analogy, here in Fox, announced a working group to start pencilling in the UK, we have the custom of spring cleaning, where in the contours of a new post-Brexit trade and investment anticipation of sunny times, and coming out of the winter relationship with India. This is a welcome step forward. months, we clear out the clutter and put our house But we must avoid bureaucratic fudges. Its work must in order. be open, transparent, and allow a wide cross-section of stakeholders to engage in a meaningful manner. The tide of history has brought India and the UK to such a turn in the road. Coincidentally, PM Narendra Modi’s vision Modi has called the Indian diaspora in the UK the “living of embracing globalisation to expand India’s economy and bridge” between the two countries and has actively sought realise its ambitions of taking its rightful place at the global to engage them in the process of bilateral cooperation. high table has some resonance with PM Theresa May’s But does the DTI or British High Commission in India have ambition of a post-Brexit “Global Britain”. a strategy for diaspora engagement? Taking a leaf from Modi’s book, May’s government, too, There are, or will emerge, vast areas can reach out to this living bridge – and of synergies the two countries can INDIA AND THE UK the ongoing India-UK Year of Culture exploit for mutual benefit as well as NEED TO RE-IMAGINE presents just the right platform. for the greatest common good of all THE RELATIONSHIP, RE- humanity. Or, in Narendra Modi’s CALIBRATE THE SCALES My fabulous team has made a language: “Sabka Saath, Sabka BY WHICH WE JUDGE small beginning by recognising and Vikas”. But it will not be a straight celebrating the achievements of such PROXIMITY AND WARMTH and easy road. The challenge is people with the India Inc. curated ‘UK to prevent the relationship from AND DO IT FAST. India 100’ list of most influential people. becoming transactional. There will always be the clear and present danger that we may have The potential is there for all to see. The tide is right and become too comfortable. India and the UK need to re- if May and Modi can take it at the flood, it can lead on imagine the relationship, re-calibrate the scales by which to a great future for both countries. History is replete we judge proximity and warmth and do it fast. with examples of individual leaders transcending their situations to lead their countries to ever greater heights. Trade is the obvious area of synergy. India is the third- In the UK and India alone, there are examples such as largest source of FDI into the UK and the UK is the largest Winston Churchill, Mahatma Gandhi and, potentially, G20 investor in India. Despite this, UK trades more with Modi himself. Sweden, which has a GDP that’s just about a fourth of India’s, than with India. We can obviously do better. And, Can he and May move to the melody of ‘Yeh Dosti’? If they despite my view that the UK should have remained in the do, they will have re-written the future of UK-India ties in EU, Brexit could just offer that opportunity. golden letters.

A renewed relationship also means May’s government must show greater empathy for Indian demands for concessions on immigration, as higher education for its Manoj Ladwa youth and free movement of its professionals are key to Publisher & CEO, India Inc. keeping the wheels of its services-dependent economy @manojladwa www.indiaincorporated.com May 2017 3

SPECIAL EDITION CONTENTS

This Special Edition of ‘India Global Business’ celebrates the “special” relationship between India and the UK. It is packed with exclusive interviews and columns that capture the essense of the bilateral engagement.

10 28 EXCLUSIVE An all-weather relationship

Not a time to pull up the drawbridge by Liam Fox, UK Secretary of State for International Trade

FACE TO FACE 30

India has become a pivotal power of the 21st century by M.J. Akbar, MoS External Affairs, India

32 UK-India can capture a carbon collaboration INDIA-UK by Aniruddha Sharma, CEO, Carbon 18 As May files for EU divorce, Clean Solutions Limited (CCSL) wooing India must be a priority by Manoj Ladwa, Founder & CEO, India Inc. COMMONWEALTH 20 A dealmaker’s guide to getting things done by Alpesh Patel, UK Government Dealmaker 34 A Commonwealth agenda for growth FACE TO FACE by Lord Marland, Chairman, Commonwealth Enterprise and 22 Investment Council

36 INDIA-CANADA

Blended finance is the answer to sustainable development Exclusive with Suma Chakrabarti, President, European Bank for Reconstruction and Canada and India can take Commonwealth lead Development (EBRD) Exclusive with François-Philippe Champagne, Canada’s Minister for International Trade 26 Indian companies propel Brexit-bound UK

6 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION

40 India must share leadership of the 72 Britain holds on to position as largest G20 Commonwealth investor into India by Lord Jitesh Gadhia, UK-based businessman and investment banker BOOK REVIEW 43 India is a major Brexit trade priority OUT by Tim Hewish, Director, Policy & Research, Royal SOON Commonwealth Society 76 Feature : New road for THE AMERICAS India-UK ties by Arnab Mitra 47 H1B: The visa that bites by India Inc. Staff

53 Indian investment flow rests on openness of US economy HOTSPOT by Chandrajit Banerjee, Director- General of the Confederation of 80 Scotland vies for Indian investments Indian Industry

INDIA-AFRICA

56 Innovation is in the Godrej DNA Exclusive with Vivek Gambhir, Managing Director, Godrej Consumer Products Limited

86 The woman behind calls for ‘Scexit’ 60 A renaissance of India-South Nicola Sturgeon, First Minister of Scotland Africa ties by Kingsley Makhubela Chief Executive Officer, Brand South Africa GLOBAL INDIAN

89 Being a Global Indian is part of INDIA INVESTMENT JOURNAL my DNA Exclusive with Baroness Usha Prashar, EXCLUSIVE Deputy Chair, British Council 62 India is the most open, least protectionist economy today OTHER HIGHLIGHTS Exclusive with 95 Indian fever catches on in Britain Arun Jaitley, Indian Finance Minister 98 Tips for a stress-free passage from India to the UK by Anirudh Singh, Head - UK & 66 In aid of a collaborative new relationship Europe, VFS Global

68 Indian-made jet engines all set 100 Sedentary work life, pain killers and therapy to take flight by Keerti mathur, Associate, Gait and Posture Exclusive with Chris Cholerton, President – Defence Aerospace, 102 Robust growth in external trade to drive GST Rolls-Royce success www.indiaincorporated.com May 2017 7 SPECIAL EDITION Yeh Dosti... [THIS FRIENDSHIP] veryone agrees that UK-India relations have tremendous potential. Everyone involved in its daily workings also say ties between the two countries can only get TEAM Ebetter. But almost every such person also admits that the relationship is falling seriously short of potential. Chief Executive Manoj Ladwa This is a paradox as the breadth and depth of the [email protected] relationship is significant and much more can be done. It is actually surprising that a lot of the engagement does not actually materialise into concrete results. Editor Aditi Khanna The areas in which the two countries can – and do – [email protected] cooperate are clearly evident and obvious for everyone to see. Trade, defence technology transfers, fundraising Commercial Director in London, people-to-people ties and soft power exports Erik van Kaathoven are the obvious areas of convergence. [email protected] Our cover package, Yeh Dosti… [meaning “this friendship”] follows the theme song of the iconic Operations Director 1975 Bollywood blockbuster ‘Sholay’, which tracks the Sanjay Kara adventures and friendship of two young men who live [email protected] and die for each other while overcoming all manners of hurdles. VP Operations That is the kind of bonding that we foresee between the Rajvi Singhi UK and India – with very good reason. [email protected] British Prime Minster Theresa May’s vision of a Global Special Projects Director Britain that does not retreat into isolation after Brexit Nomita Shah has huge synergies with Indian Prime Minister Narendra [email protected] Modi’s vision of a globalised India, fully integrated into the international supply chain, finding its place at the Events Manager global high table. Reimagining the Commonwealth as a modern 21st century-ready free trade bloc is another Dina Ladwa obvious area of cooperation. [email protected] Then, India is the third largest foreign investor in the UK www.indiaincorporated.com and the UK the largest G20 investor in India but bilateral © India Inc. Limited, all rights reserved. trade has flattered to deceive. Even Sweden, which was Reproduction in whole or in part without ranked as the UK’s 14th largest trade partner in 2016, our written permission is prohibited. Views ranked higher than India. expressed by our contributors are their own and do not necessarily represent the views, policies This needs to change… and fast. The real engines of this of India Inc. While every effort is made to change will have to be the many famous personalities achieve total accuracy India Inc cannot be held and some unsung heroes who work tirelessly to fulfil the responsible for any errors dream of closer UK-India ties. In the following pages, or omissions. ‘India Global Business’ honours 100 such individuals for NOT FOR SALE their contributions to forging closer ties between these PUBLISHED IN LONDON two countries.

Read on to find out more.

COVER FEATURE SPECIAL EDITION

An all-weather relationship

‘India Global Business’ analyses UK-India relations and identifies key areas of cooperation that the two countries must build upon and key areas of divergence that they must bridge in order to fulfil the potential of the relationship.

he potential of the relationship electoral endorsement, embarks on eye to eye on them. is massive, but India and the implementing the next generation of UK are barely scratching the economic reforms, we take a look at Global Britain, globalised India Tsurface. The optimism that the two three areas where the UK and India May has made it clear that she countries would sign a trade deal in views the Brexit vote as a mandate the immediate aftermath of Brexit and for making Britain even more global signal closer all round ties has waned BRITAIN HAS BEEN and integrated with the world and considerably but leaders and analysts AT THE CENTRE OF asserted in no uncertain terms that on both sides remain confident about THE GLOBALISED she does not want her country to the future. WORLD SINCE THE retreat into isolationism. VERY BEGINNING OF The two countries share too much in GLOBALISATION FIVE “We all want to live in a truly global history, culture, people-to-people ties Britain that gets out and builds for the relationship to head anywhere CENTURIES AGO AND relationships with old friends and else but closer. But realists also admit CAN HELP INDIA, AMONG new allies around the world,” she had that despite the synergies in thinking THE LAST COUNTRIES said shortly after setting in motion the and world views, there are also TO BE CONVERTED TO process for Britain to exit from the considerable areas of disagreement THIS MANTRA, IRON OUT European Union. between the two governments. THE ROUGH EDGES IN ITS As British Prime Minister Theresa This vision fits very well into Modi’s May leads her country into an STRATEGIES. own worldview that sees India as a unscheduled election seeking a freer globalised economic and strategic hand on the Brexit negotiations and can cooperate with each other and power that finds its seat in the global her Indian counterpart Narendra three other areas that need lots of high table. This convergence of the Modi, strengthened by a mid-term hard work before the two sides can visions of the two prime ministers

10 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION COVER FEATURE offers a great opportunity for the two cooperation in entrepreneurship, and greater trade ties with its MSME countries to cooperate with each technology, innovation and IPRs. segment is one way of achieving other on a range of issues. And British International Development this goal. Secretary Priti Patel had promised Britain has been at the centre of help for the Prime Minister’s ambitious Soft power exports the globalised world since the Smart Cities initiative. Bollywood is the most popular form very beginning of globalisation five of entertainment not only in India but centuries ago and can help India, Another area where Indo-UK trade also in several parts of Africa, Middle among the last countries to be can look for exponential growth is in East, Central Asia and South East converted to this mantra, iron out the the area of micro, small and medium Asia. Rajnikanth is the most popular rough edges in its strategies. enterprises (MSME), which forms the film star in Japan. And steamed rice backbone of every country’s industrial and curry is Britain’s most popular Improved trade ties base and which generates the soul food. Trade was raison d’tre of bilateral maximum number of jobs. ties that were first established four Despite this massive groundswell centuries ago. Since then, it has been of support from local communities trade that has been the main lubricant across the world, India has fallen greasing the moving parts of this woefully short in leveraging its relationship. soft power. Before Modi’s rise to the office of Prime Minister, no As Britain’s International Trade Indian government ever considered Minister Liam Fox said, the two integrating the influence of the Indian countries’ “current trading relationship diaspora with the country’s foreign is strong but, more importantly, there policy goal. is so much future potential”. Then, unlike the British Council, which The figures look good at first sight. is at the forefront of spreading British In the decade starting 2004, bilateral soft power all over the world, the trade between the two countries grew Indian Centre for Cultural Relations 170 per cent. That looks impressive (ICCR) has been used by successive – till you measure it against the 800 governments as a cushy sinecure per cent growth in India’s overall for a few favoured bureaucrats and trade during this period. The massive EDUCATION IS VITAL cultural personalities. Many Indians relative underperformance is FOR OUR STUDENTS complain that the Nehru Centre accentuated by a decline of about 8 AND WILL DEFINE in the UK has become a parking per cent in 2014-15. lot for authors, artistes and retired OUR ENGAGEMENT IN bureaucrats who the government of The potential remains massive and A SHARED FUTURE. the day in New Delhi want to reward this is further increased by the fall WE MUST THEREFORE for favours done. in the pound sterling relative to the ENCOURAGE rupee since the Brexit vote. The 15-20 GREATER MOBILITY India has recently overtaken the UK per cent depreciation in the British AND PARTICIPATION as the world’s sixth largest economy, currency has made UK exports to India and Japan are stepping up their India that much cheaper, benefiting OF YOUNG PEOPLE economic and strategic partnerships, a host of goods and services such IN EDUCATION the gulf monarchies are increasingly as Rolls Royce, Bentley and Jaguar AND RESEARCH pursuing closer ties with New Delhi cars to Hawk trainer jets, Lee Perkins OPPORTUNITIES. and India is emerging as Africa’s Worcestershire sauce to global favourite global partner. investment banking mandates. Narendra Modi, Prime Minister of India There’s so much the ICCR can do to UK’s trade with India is currently at a push India’s interests – in the UK, the level lower than its trade with Sweden. US, in Western Europe and the rest of Something obviously is amiss. There is no doubt that for Modi’s the world. In fact, instead of trying to ambitious Make in India initiative reinvent the wheel, it can actually cut The two countries are aware of to succeed, India’s fragmented and paste the British Council template this. Prime Ministers Modi and May and mostly uncompetitive MSME and then tweak it to align with India’s inaugurated the India-UK Tech segment has to pull itself up to own geo-strategic goals. Summit in New Delhi on November 7 global standards and become part last year, which will provide a platform of the international value chain. And That would give India’s cultural for the two countries to explore further collaboration with British industry diplomacy some real teeth. In a fast www.indiaincorporated.com May 2017 11 COVER FEATURE SPECIAL EDITION changing globe, where Visas for Indian students countries are jockeying India wants an easier visa intensely to secure for regime for its students and themselves leadership roles professionals who want to in the emerging new world pursue higher studies or order, India’s soft power careers in the UK. But the could be the thin end of the UK government, on its part, wedge for New Delhi. has to respect the Brexit sentiment, which was largely Closer cooperation in the driven by anxiety about three areas shortlisted above unchecked immigration into will go a long way in fulfilling the UK. the potential of the Indo-UK There is a considerable amount of relationship. So, both governments have interest in India, particularly after Brexit. to be sensitive about where Correspondingly, my discussions in the past But as we said at the the other is coming from, have also indicated that both investors and beginning, there are also but at present that does not the government here (Britain) are looking for areas where the two seem to be the case. expanding opportunities of trade with India. countries need to narrow the gap in their understanding. The UK announced – just Arun Jaitley, Indian Finance Minister three days prior to May’s Warm rhetoric, little maiden visit India last year substance – fresh visa restrictions on The biggest issue is to put overseas students including some substance into their new two-tier visas that place relationship. Analysts are a premium on the quality unanimous that India’s ties of the courses the students with the UK will remain warm wish to pursue in Britain. Her and stable. May’s visit last government also announced year, her first as UK’s Prime fresh restrictions on the Minister, was keenly watched issue of work visas to They [UK] are eager to have an FTA [free as it was considered a test control immigration. trade agreement]. They certainly look at India case on the direction she will as one of the potential FTA partners. We are take as the UK forges ahead “The UK will consider further also happy to engage with them... Once the with its relationships with improvements to our visa process of informal discussion starts, then major economies in the post- regime if at the same time we will get into discussions in detail. Brexit phase. we can step up the speed and volume of returns of Nirmala Sitharaman, Commerce and There are significant areas Indians with no right to Industry Minister of cooperation that the two remain in the UK,” May sides broadly agree they had said. should pursue. Defence equipment, strategic affairs, That is obviously not what counter-terrorism, climate her Indian interlocutors change, renewable energy wanted to hear but she and science and technology seemed oblivious to the fact are the obvious sectors of that her reluctance to ease collaboration. These are the strict visa restrictions being pursued and this will on students, professionals continue but the big picture and visitors from India will With Britain’s departure from the EU, seems to be lacking. make it difficult for the Modi India will have to negotiate a Free Trade To use a cricketing analogy, government to proceed Agreement with the UK which may be easier the match is on halt due with any meaningful trade to accomplish at a bilateral level... This could to a rain-induced break. deal since any concessions well be the best era for our industries to But it has not yet been to Britain would become collaborate. abandoned. The full potential politically contentious. will unfold only when there is Chandrajit Banerjee, CII Director-General clarity on the fine print of the Over the last few years, the UK’s divorce settlement with UK has tightened visa rules the EU. for Indians. Since she took

12 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION COVER FEATURE office as Home Secretary India is a vastly different in the David Cameron led country from what it was government, the number of even three years ago when Indian students in the UK Modi swept to power. But has fallen from 40,000 to to vast swathes of UK about 25,000. During this industry it remains, at least time, the number of Chinese in perception, a very difficult students in the UK has country to do business in. jumped almost 60 per cent from 55,000 to 90,000. This is strange, considering that the UK is the largest A massive increase in visa G-20 investor in India and fees, a strict clampdown its companies employ more on issuing work permits than 100,000 people in India. The UK is perfectly placed to be India’s to Indian students who To improve India’s image, financial partner of choice, helping it to raise complete their higher the government of India the nance needed for its continued rapid education in the UK and has to take effective steps growth and my message will be ‘Make in tougher norms for people to to highlight the changes India, finance in the UK. visit family members settled already made in Indian in Britain are the main systems and procedures and Philip Hammond, UK Chancellor of the causes for this decline. embark on further reforms Exchequer to improve the operating Since taking office in 2014, environment in India. Indian Commerce Minister Nirmala Sitharaman and The UK-India Business other functionaries of the Council (UKIBC) and Indian government have the Confederation of taken up this issue with their Indian Industry (CII) have counterparts in London but shortlisted the following four the UK government has areas where improvements shown no signs of relenting could lead to immediate on the matter. benefits: We have now concluded a deal to set up a trade working group with India to look at May did not indicate that she * Tax cuts: A quick reduction how we will remove barriers to trade before was thinking of any ways of in corporate tax rates to 25 we negotiate a free trade agreement on our addressing Indian concerns. per cent as announced by exit from the European Union. Instead, her assertions on Finance Minister Arun Jaitley stepping up the “speed and in Budget 2015 Liam Fox, UK Secretary of State for volume of returns of Indians International Trade with no right to remain in the * GST rollout: Fast and UK” point to a continuation of smooth GST implementation. the hard line approach she This will improve ease had adopted in her previous of doing business, cut role as Home Secretary. corruption and improve GDP growth. Sections of the Indian establishment have already * Stable tax regime: Having begun murmuring about simple, fair and predictable Britain wanting Indian trade tax regime but not Indian professionals. The two governments have * Clarity on govt plans: One of the very important steps forward of to quickly bridge this chasm Long-term clarity in Theresa May’s (India) visit last November before this sentiment gathers areas like defence and was that we now have a government- political strength and makes infrastructure expenditure to-government working group with the it difficult for negotiators Commerce Secretary and the International from both sides to engage in Clarity on Brexit Trade Secretary in charge that is looking at meaningful talks. India also wants a clear the totality of the relationship. sense from Britain on Ease of doing business in the terms of its ongoing Patricia Hewitt, Chair, UKIBC India divorce with Europe. Indian www.indiaincorporated.com May 2017 13 COVER FEATURE SPECIAL EDITION companies such as the Tatas, Birlas, Essar, Infosys and others have invested billions of pounds in the UK not only to gain a foothold Trade is an important part of our relationship with India. in that country but also to serve the India is the third-biggest investor into the UK – second- European Union market from their biggest creator of private sector jobs in the UK. And the British bases. UK is the biggest G20 investor into India, but there is more we can do. Following Brexit, their plans of serving the Continental market from Theresa May across the English Channel have Prime Minister of the UK been thrown into disarray. Clarity will Britain unless a really attractive deal the UK. Given the lack of clarity emerge only when the roadmap and – involving a company with marquee on the future of British companies the fineprint for Britain’s exit from the brands or really high technology – themselves, the May government may EU become clear. comes along. not be in a position to ensure such security and that could emerge as Till then, senior India Inc executives But India would still want May to another area of divergence between say, Indian companies aren’t likely to ensure the interests of the Indian the two countries. embark on big-ticket investments in companies that have invested in

14 May 2017 INDIA GLOBAL BUSINESS

The India-UK dynamic has been steady but in some cases rather slow. The new post-Brexit reality offers a fresh perspective on this historic relationship, with INDIAUK FACT SHEET some estimates indicating any new free trade agreement (FTA) could result in a massive 26 per cent annual trade boost.

ODI* from India into UK FDI from UK into India India in UK Key Investment Facts UK in India $1764.02 mn $3215 mn India ranks 5th in terms of the UK remains the largest $1447 mn number of FDI projects from G20 investor in India $1378.82 mn $1266 mn India at 140 projects and 3rd $1242.74 mn $1080 mn largest source of FDI in the UK $1202.47 mn

$783.39 mn $898 mn

India was the 3rd largest 3rd largest investor in India country to create new after offshore international 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 nancial centres Till Feb 2017 jobs in UK at 7,105 jobs Till Feb 2017 *Overseas Direct Investment Source: Department of Industrial Policy & Promotion Source: Reserve Bank of India Combined revenues of 800 One in every ten jobs created by Indian companies in the FDI in India between April Top Sectors Attracting FDI from India Top Sectors Attracting FDI Equity UK were £47.5 billion in 2000 and September 2016 (Over the last one year) In ows from UK (From Jan 2000 to Dec 2015) 2016 were created by UK FDI

1 1 32% 25.5% Technology 2 Chemicals 2 (Other Than and telecom Pharma Fertilisers) Drugs & Bilateral Trade (Amounts in US$ mn) & chemicals Pharma EXPORTS YEARS TOTAL TRADE IMPORTS 5% SECTOR 19% 13.1% SECTOR 17.3% 8,613 2012-13 14,906 6,293

9,779 2013-14 15,824 6,045 4 4 3 3 9,320 2014-15 14,338 5,018 Automotive Services Food Financial Sector Processing 10% services 13.4% Industries 8,829 2015-16 14,023 5,194 6,367 2016-17 9,166 2,799 Apr-Dec

Source: Grant Thornton Source: Department of Industrial Policy & Promotion Source: High Commission of India in London & Ministry of Commerce and Industry, India.

India in UK UK in India

India was the 3rd largest country to create UK remained the largest job creator in Regions new jobs in UK at 7,105 jobs India via direct FDI In India: Maharashtra, Delhi NCR, Tamil Nadu and Karnataka have been major recipients of UK equity FDI. 6 of the largest Indian employers are based 1 in 20 jobs in the organised private in London sector was provided by UK In UK: London, South, North and Midlands have attracted investments from Indian companies.

The Automotive and Industrial Products sectors JOBS The Food Processing and Chemical scored high on job creation sectors scored high on job creation Source: Various The India-UK dynamic has been steady but in some cases rather slow. The new post-Brexit reality offers a fresh perspective on this historic relationship, with INDIAUK FACT SHEET some estimates indicating any new free trade agreement (FTA) could result in a massive 26 per cent annual trade boost.

$783.39 mn $898 mn

Source: Grant Thornton Source: Department of Industrial Policy & Promotion Source: High Commission of India in London & Ministry of Commerce and Industry, India.

India in UK UK in India

The Automotive and Industrial Products sectors JOBS The Food Processing and Chemical scored high on job creation sectors scored high on job creation Source: Various GLOBALLY SPEAKING SPECIAL EDITION As May files for EU divorce, wooing India must be a priority by Manoj Ladwa

Now that Mrs May has triggered formal divorce proceedings with the EU, India Inc. CEO Manoj Ladwa explains how the UK could learn a lesson or two from the Japanese on getting up close to Modi’s India.

he late Sir James Goldsmith, isolationism but rather, an opportunity to announce that they are BFF (best the billionaire financier who to become even more global and friends forever, to use the lingo of spent a considerable part of internationalist in action and spirit.” today’s youth). This personal fortune on a campaign to force Great Britain out of the Britain is hoping its negotiators India and the UK have very robust European Union, once famously can get a good divorce settlement trade and cultural ties that are said: “When a man marries his from the EU while many fear that cemented by a centuries old mistress, he creates a job vacancy.” the bureaucrats in Brussels are relationship that has, as its bedrock, a determined to pull out all stops to common language and warm people- Without getting into a debate on the deny Mrs May and her team to-people relations that is unmatched. issue, I just want to point out that exactly that. when a man divorces his wife, he More than 800 Indian companies are creates a job vacancy as well. So as Let me not beat about the bush. The present in the UK making them the not to sound sexist, let me add that UK needs to urgently cut mutually third largest foreign investor group two, not one, vacancies are created. beneficial trade deals not only with in the UK and the second largest EU but also with its other trading job creators. The Tata Group, is, in Prime Minister Theresa May’s partners and this is where India and fact, Britain’s largest manufacturer- decision to trigger Article 50 of the the so-called “job vacancy” comes in. employer. And the UK is the largest Lisbon Treaty, which signals the At this point, the British government investor in India among G-20 start of the messiest and most costly needs to demonstrate, in no uncertain countries. divorce in world history – the exit of terms, that it can find alternative the United Kingdom from the EU – is, markets and tie up trade deals that Most of these Indian companies have to quote EU Council President Donald compensate for the likely losses that chosen the UK as the base for their Tusk, “not a happy day for him or for will accrue from Brexit. European operations. Their fate – and the EU”. those of the thousands they employ in This, most observers believe, is the Britain – is in the balance. It isn’t a particularly happy day minimum condition Mrs May has for the UK either, but as Mrs May to fulfil to get a fair trade deal from There are times in history when a said, it wasn’t also a “move towards Brussels. And that is why this may confluence of many factors forces be a good time for the UK and India leaders and nations towards a

18 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION GLOBALLY SPEAKING particular course of action. I believe pretty poor returns given the potential. Indian partner of Honda, is the world’s that UK triggering Article 50 to exit Notwithstanding the above, I largest motorbike company and the EU and Prime Minister Narendra believe there is immense scope competes with the Japanese giant in Modi’s assertive outreach to the rest for cooperation between the two markets across Asia, Latin America of the world are creating conditions countries, especially in the defence and Africa. for the two countries to come closer sector. Prime Minister Modi wants to broaden their trade, diplomatic and to build up an indigenous defence Suzuki Motor Company did the strategic engagements at a time when industrial base in India and his same with the Indian passenger much of the Western world is being government is looking for partners car industry, which is now among buffeted by the winds of isolationism. who can help the country achieve the world’s largest. From a small this goal. beginning in the early 1980s when The UK as a global financial SMC set up a joint venture to powerhouse and technological assemble some 50,000 cars every leader can find many synergies with year in India, Maruti Suzuki India India, the world’s fastest growing is today larger than its Japanese major economy, with a billion-plus parent and India has emerged as the aspirational consumers. undisputed global hub for the design and manufacture of small cars. Mrs May’s choice of New Delhi for her first foreign visit as the head of Her Like Honda and Suzuki, if Britain Majesty’s Government gave out the can help India develop a domestic right signal even if her visit didn’t quite ecosystem for a viable defence live up to the heightened expectation industrial base – with linkages to it had generated in its run-up. India’s robust MSME sector – it will not only have helped India build a The hopes of a quick conclusion to a new industry almost from scratch and UK-India trade deal have since been generate millions of new jobs as the tempered. And the Joint UK-India automobile sector has done but also Working Group that UK’s International created for itself a very large market. Trade Minister Liam Fox announced Note: Japanese companies have a last year is yet to meet. India’s combined share of more than 65 per economy is overwhelmingly service- cent of India’s two-million-cars-a-year oriented and depends critically on the market. Such a defence collaboration, skills and talents of its people. Given I believe, can become a textbook this, India is unlikely to acquiesce to case of a win-win collaboration. British overtures in this respect unless MRS MAY’S CHOICE OF London agrees to its demand for freer But Mrs May may have made a movement of professionals as part NEW DELHI FOR HER mistake in linking security cooperation of any deal to liberalise the terms of FIRST FOREIGN VISIT to a trade deal with the EU. Such trade for British industry. AS THE HEAD OF HER statements will have raised concerns MAJESTY’S GOVERNMENT in the corridors of Delhi as Modi is a But several analysts I have spoken GAVE OUT THE RIGHT man who has from day one made it to say Mrs May’s earlier track record clear that there must never be any as Home Secretary, when she put in SIGNAL EVEN IF HER compromise or bargaining on matters place new rules to curb immigration VISIT DIDN’T QUITE LIVE of security and the global fight and scrapped the two-year post-study UP TO THE HEIGHTENED against terrorism. work visa that many Indian students EXPECTATION IT HAD in the UK used to stay on in the GENERATED IN ITS But as the saying goes: No one can country, as well as the fact that anti- stop the idea whose time has come. immigrant sentiment was a key factor RUN-UP. I believe the time is ripe for the UK behind the Brexit vote, are stumbling and India to forge closer trade and blocks in the path of a UK-India trade strategic ties – and maybe even pact. Now that, in my opinion, is a real Three decades ago, Japanese reimagine the Commonwealth as the pity. Foreign – and especially Indian two-wheeler makers like Honda, vehicle for such cooperation. – immigrants have immeasurably Kawasaki, Yamaha and Suzuki enriched UK’s economy, culture and collaborated with relatively small I remain optimistic about a public life. and some then practically unknown positive outcome. companies to set up motorcycle Pulling up the drawbridges to this assembly units in India. That influx of talent – and also shutting to enabled India to build a domestic Manoj Ladwa is the Founder the doors to a win-win trade deal with manufacturing base for two wheelers. and CEO of India Inc. India as a consequence will signal Today, Hero MotoCorp, the erstwhile www.indiaincorporated.com May 2017 19 INDIA-UK SPECIAL EDITION A dealmaker’s guide to getting things done

A Dealmaker for the British government does some tough-talking to explain the secret behind clinching a good deal.

or the past decade as the is, without addressing what the UK government’s Dealmaker global problem is that it solves within UKTI’s [UK Trade and MAKE INTELLECTUAL wastes time and let me think you FInvestment] Global Entrepreneur PROPERTY IN INDIA, FOR can’t run a company. Programme, I have been responsible YOUR INDIAN COMPANY. for bringing the most innovative young THEN YES, TAKE THAT • Scientists who want to be control companies from India, China and COMPANY GLOBAL freaks. So it’s your baby and you South East Asia to the UK. I have had (PREFERABLY FROM THE want to run the company – really? an unusual insight into what help they Not gonna happen, Einstein. need, and a lot of success in help- UK) AND SELL, RENT, The guy with the money calls the ing them do it, so I’ve put together LICENCE, LEND, FRANCHISE shots – not you. Don’t like it, go some of my thoughts for those of you THAT INTELLECTUAL ask someone else for the money. looking to make UK connections and PROPERTY. secure that expansion deal. • Focus, be professional, be on time, remember the correct Introductions don’t matter; first about their technologies annually. day, arrive early, set up your impressions do Those are the ones who get past the laptop, find the location, have my I’ve got news for you. Yes, I know filtering. The vast majority fail for the number, tell me where you are sometimes the right introduction does following reason: seated in advance. matter, but it has to be in person, with someone you have a long-standing • They are solutions looking for All of this saves about 50 per cent of rapport, probably over drinks and problems. You have a limited your allocated 30 minutes of fame. dinner late in the evening. amount of time to impress me ONLY one person ever got all these or anyone else. So going on things right when he came to meet I see around 150 people in person about how brilliant your solution me. His name? Peter Cruddas, now

20 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION INDIA-UK a billionaire. He came to see me at excitement. Excitement is good. I that you learnt from those who never Bloomberg. Would not take no for love that. But focused controlled made you successful to begin with? an answer. Got everything set up excitement and a sure idea of the beforehand without bothering me. target you are aiming for is better. And finally, what is the first Trust me, I interview you well before commandment of a successful we’ve met. Being Indian matters entrepreneur or company? Thou Make intellectual property in India, for shalt be optimistic. Getting things The way you see things matters your Indian company. Then yes, take done requires a positive outlook and Train yourself to see only that company global (preferably from a motivated mind. Find the positives opportunities in everything – the the UK) and sell, rent, licence, lend, and capitalise on those, mitigate as UK is constantly looking to boost franchise that intellectual property. much as possible the uncertainties

Train yourself to see only opportunities in everything...

its economy, and what better way You see, if you make pharmaceuticals and negatives, and do not indulge in than attracting innovative talent from for an American company, it’s the wishful thinking, but rather plan abroad. The two scarcest resources company which takes its profits and succeed. on earth are not diamonds or oil, but abroad. But then the Indian company money and blood – or to be specific owns the intellectual property, it entrepreneurial gene. Governments takes that global and profits from it around the world are in a fierce war from everywhere. Alpesh Patel is a UK to capture as much of those genes as possible. Use this to your advantage! The long term goal matters Government Dealmaker, seeking Always remember to see the big outstanding entrepreneurs to Your approach matters picture – the business plan, the land their companies in the UK. Sealing the deal requires patience. I long term goal. Being professional He is also a barrister, CEO of will have trading apprentices who will as a business means knowing not hedge fund/private equity firm just start trading straight away without everything always wins. That all you Praefinium, author of 18 books filling in even my simple one page have learnt before which has not won business plan. So they will not set a you that great deal or contract was on business and investing and goal. They will therefore throw away probably wrong. Stop and ask yourself a Visiting Fellow in Business at a massive opportunity to create an this question: are you too busy Oxford University. income because of their premature repeating the mistakes of the past www.indiaincorporated.com May 2017 21 FACE TO FACE SPECIAL EDITION

BLENDED FINANCE IS THE ANSWER TO SUSTAINABLE DEVELOPMENT Suma Chakrabarti has been charged with one of Europe’s leading development banks for five years and has spent considerable energy in striking a strong connect with India. Sir Suma tells ‘India Global Business’ how Indian companies can take the lead in re-defining the world’s development agenda.

22 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION FACE TO FACE hat is your bank’s What are some of the banking developing a private sector line engagement with India synergies with India? of business and are particularly like? interested in how EBRD did this and W Being asked to give one of the is running on nearly 80 per cent The European Bank for opening speeches at the annual private sector lending. Reconstruction and Development meeting of the New Development (EBRD) already works with a number Bank (NDB) in Delhi [March/ That model is going to be more of Indian companies in our countries April 2017] symbolises the strong and more important for the world. of operation and we want to engage partnership between EBRD and NDB. All countries have signed up to the even more with the Indian private Sustainable Development Goals by sector. We have shown the way with 2030 and none of us believes that Indian companies in our region. We those goals can be achieved without have brought in Tata Beverages, ALL COUNTRIES leveraging private sector finance. Tata Power, the Jindal Group, SREI, HAVE SIGNED UP TO EBRD has a model that does that among others, and they have all THE SUSTAINABLE very well and other banks are very worked with us on projects in Russia, DEVELOPMENT GOALS interested in learning from that model. Georgia and other places. The development agenda of the There is a real opportunity for Indian BY 2030 AND NONE OF US future cannot be met by grant aid businesses. When we look at the BELIEVES THAT THOSE alone. It is just not feasible. Hence we BRICS [Brazil, Russia, India, China GOALS CAN BE ACHIEVED are making this big case for blended and South Africa], very few of their WITHOUT LEVERAGING finance; getting the private sector to companies are global leaders. One of PRIVATE SECTOR FINANCE. involved alongside grant funding. the Interesting things about India is that it does have some global names. What role do you see for India There is a real opportunity for India within this model? with this shift in development practice NDB has five shareholders, two of towards more of a private sector whom are also our shareholders India will be one of the leading approach to be first and through – Russia and China. So, there is a proponents of this model. The current the door. common platform. When the NDB Indian government, which is very was set up, along with the Asian private sector friendly, will be very What is your message for Indian Infrastructure Investment Bank (AIIB), interested as a shareholder in all companies with global ambitions? they wanted us to share lessons as the major multilaterals – ADB [Asian the last development bank set up in Development Bank], World Bank and We wanted a nice mapping of the 1991. We took part in a number of now NDB. They would be keen to see EBRD’s 36 countries of operation workshops with them, for example on if that model can be made a reality in and Indian business interests in how governance works in the bank, the other banks as well. those countries. It showed that Indian how the project process is run, the businesses could use EBRD more to evaluation systems, the finance and Also, because Indian companies are leverage greater involvement in those treasury functions. increasingly very competitive – not regions. just the big ones, but the mid-sized We engaged on senior management ones too – in many parts of the world, We are in Russia, Central Asia and level and also with Mr K.V. Kamath it is in India’s commercial interests as Eastern Europe, but we are also now [NDB President], who I share a very well to pursue this model. in Turkey, Greece, Cyprus, Middle close professional and personal East and North Africa. One example relationship with, which also led Is India’s membership of EBRD on is Egypt, where India has traditionally to the MoU [between EBRD and the anvil? been very strong but not through the NDB to collaborate on sustainable EBRD. There is scope of collaboration development and infrastructure It’s been on the agenda since 1991. It there. The list for the future is projects in emerging markets of their is very much a decision for the Indian also interesting with countries like respective regions of operations]. government. Kazakhstan, Ukraine and Georgia. Indian companies need the help of What role do you see for the These issues do take a long time. In multilateral banks like us to invest in private sector in the global the mean-time, India has joined the risky markets. They need to have a development agenda? AIIB and the NBD – which shows partner who knows the country well, India is very interested in multilateral knows all the political and economic We are very much a private sector development banks. On EBRD, they risks and the EBRD is the answer. based bank. Other regional banks have to talk to the shareholders and it Our message is that we are here tend to focus more on the public does come up in all our discussions. to offer that knowledge to Indian sector. China joined last January and I think companies. The NDB is quite interested in that is of great interest to India, given www.indiaincorporated.com May 2017 23 FACE TO FACE SPECIAL EDITION the partnership with China in the eastern Europe gets hit much more proud of what we have been doing G20. Lebanon will be joining in a few through the economic chain. That in Ukraine and the western Balkans, weeks, so our Middle East reach has implications for the EBRD and which has had a terrible history, but is widening. whether we invest more to substitute we have managed to make an impact. for the economic shock. We are There have also been some notable Will Brexit have an impact on waiting to see what kind of a Brexit it changes in some of our members. EBRD? will be. Uzbekistan, which was in the deep freeze for many years, we are set to In formal governance terms, it does On a more personal level, what are restart operations in. Lebanon is set not impact on us because we are not some your highlights as President? to join and China joined last year. an EU bank but a global bank; the US is our largest shareholder. However, The bank, which in around 2005 was I am particularly proud about our the impact might be on some of our being dubbed a sunset bank without record in the energy efficiency sector countries of operation. It depends on a long-term future, is now very much and our Green Economy Transition the kind of Brexit. a sunrise bank. Last year, we made a (GET) approach, which seeks profit of nearly €1 billion. The bank is to increase the volume of green Our analysis shows that if it’s a in a very healthy state and very much financing from an average of 24 relatively soft Brexit, the impact on a model bank for the future. per cent of EBRD annual business our countries of operation will be I am personally very proud of EBRD’s investment in the 10 years up to 2016 very little. But if it’s a hard Brexit success in the Middle East and to 40 per cent by 2020. and the UK stops paying into the North Africa. Another great success EU budget, then particularly south- has been Central Asia. I am very

EBRD INDIA CONNECT

Indian companies work EBRD working on a solar Tata, SREI, Jindal and with the EBRD in its region project in Kazakhstan with Mahindra & Mahindra of focus with a joint invest- Haryana-based ACME among key names ment of around €1bn Cleantech Solutions

EBRD works closely EBRD signed an MoU with the Confedera- with the New Develop- tion of Indian Indus- ment Bank, or so-called try (CII), Associated BRICS Bank, in April Chambers of Com- 2017 to collaborate on merce & Industry of sustainable develop- India (ASSOCHAM) ment and infrastructure and Federation of projects in emerging Indian Chambers of markets of their respec- Commerce & Industry tive regions of opera- (FICCI) tions

EBRD was founded in 1991 to create a new post-Cold War era EBRD also works closely EBRD has an initiative to in central and eastern Europe with India’s Exim Bank to share energy efficiency and operates in over 30 coun- highlight business and pro- knowledge with banks in tries from eastern Europe to curement opportunities India Central Asia and the southern and eastern Mediterranean

24 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION NEWS IN BRIEF

India makes From the mega Vodafone deal with Idea Cellular to healthcare acquisitions, Indian firms have had a cross-sector significant impact on the UK economy in mark in UK recent weeks.

Piramal buys UK firm’s Idea merges with drugs Indian banks in UK set Vodafone for growth

ndian banks in the UK are set for a new phase of growth in the UK as they prepare to ex- Ipand operations into subsidiaries, according to the UK chief of State Bank of India (SBI).

Sanjiv Chadha, who is SBI’s ritish telecom major Vodafone Regional Head for the UK and and India’s Idea Cellular chair of the Association of Indian are to merge to create the Banks in the country, said that the Bcountry’s biggest phone company by move will lead to a wider range of subscribers. umbai-headquartered products for the Indian diaspora. Piramal Enterprises has The Kumar Mangalam Birla owned clinched a deal to acquire Idea’s merger with Vodafone will MUK-based Mallinckrodt LLC’s portfolio dislodge Bharti Airtel, which has been of intrathecal (administered via the at the top for 15 years. The new crore spinal column) spasticity and pain- entity will also be the world No. 2 after management drugs in an all-cash China Mobile. deal worth $171 million. The deal will see Aditya Birla Group The portfolio acquired includes gradually raising its stake in the Gablofen (baclofen), a severe He said: “Indian banks have combined entity while the Vodafone spasticity management product, always followed the diaspora Group will reduce its own, with the currently marketed in the US, and two and just as the diaspora has aim of both holding equal stakes over pain-management products that are transformed and grown, the Indian a period of time. under development. banks are also being asked to subsidiarise as we have As a first step, AB Group will acquire There will be additional milestone- also grown. 4.9 per cent from Vodafone to take its related payments of $32 million, stake to 26 per cent, with Vodafone depending on the financial “State Bank of India and Bank holding 45.1 per cent. Further, the performance of the acquired assets of Baroda will have both branch company will have the right to buy over the next three years. operations and subsidiary another 9.5 per cent in the combined operations. The importance of this entity over four years from the British Ajay Piramal, Group Chairman, said: move is a wider balance sheet telecom firm. “This will be our seventh pharma size.” acquisition in the last two years, Kumar Mangalam Birla will be the taking our investment for inorganic Chadha confirmed that SBI and chairman of the new entity. Vodafone growth to ?3,000 crore [$450mn] Bank of Baroda are set to make will name the chief financial officer across our pharma businesses.” the transition from a branch to while the two companies will jointly subsidiary in the next three to six name the CEO and operations The latest transaction is subject to months, following which they will head before the closure of merger, regulatory approvals in the US and have a dual presence in the UK. expected within 24 months. certain other conditions. www.indiaincorporated.com May 2017 25 INDIA-UK SPECIAL EDITION Indian companies propel Brexit-bound UK As many as 800 Indian companies in the UK generated £47.5 billion in combined revenues in 2016 and contributed significantly to Brexit-bound UK’s economic growth outlook, a new report reveals.

he ‘India meets Britain Tracker India is poised for significant UK’s attractiveness as an investment 2017’, released annually by economic growth and prosperity. destination for Indian companies, professional services major the many advantages the UK can TGrant Thornton in collaboration offer are not set to disappear. The with the Confederation of Indian UK government is also clearly keen “WITH AROUND 800 Industry (CII), has found that Indian to strengthen the UK’s ties with India companies employ around 110,000 INDIAN COMPANIES NOW and since the Brexit vote, a number of employees in the UK and last year OPERATING IN THE UK, IT UK political representatives, including had a combined capital expenditure IS CLEAR THE UK REMAINS the Prime Minister [Theresa May], of £4.25 billion. A HIGHLY ATTRACTIVE have made various visits to India with DESTINATION FOR INDIAN the hope that Brexit will open up a Anuj Chande, Head of South Asia INVESTORS. THE MODI new free trade deal between the two Group at Grant Thornton UK LLP, countries.” said: “With around 800 Indian GOVERNMENT’S PRO- companies now operating in the UK, BUSINESS AGENDA IS The Tracker highlights 55 of the it is clear the UK remains a highly CREATING THE RIGHT fastest-growing Indian companies attractive destination for Indian ENVIRONMENT FOR INDIAN in the UK, as well as the top Indian investors. The Modi government’s pro- BUSINESSES TO PURSUE employers, and provides insight into business agenda is creating the right AND REALISE GROWTH AT the evolving scale, business activities, environment for Indian businesses to locations and performance of the pursue and realise growth at home HOME AND OVERSEAS.” Indian-owned companies making the and overseas. biggest impact in the UK.

“With continued political stability and “Whilst it is still too early to predict To be included in the Tracker, now in leadership on its reform programme, what impact Brexit will have on the its fourth year, Indian corporates must

India meets Britain 2017 Tracking UK’s top Indian companies

Over 55 companies identified as the fastest-growing Indian companies 800 in the UK companies in the UK These companies achieved an average growth of 31% employ nearly Size: 24 SMEs, 29 Mid-size 110,000 corporates, 2 Large corporates people Top 3 Sectors: 31% Technology and telecoms, 24% Pharmaceuticals and record combined and chemicals, 11% business services revenues of Location: 44% in London, £47.5 24% South, 15% North, 11% Midlands, billion 4% Wales, 2% West

26 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION INDIA-UK have a minimum two-year track record we are seeing greater influence of continuing expansion of Indian in the UK, turnover of more than £5 pharmaceuticals, business services, companies’ footprint in the UK, the UK million and year-on-year revenue financial services, engineering, and must not take their presence growth of at least 10 per cent, based energy sectors. for granted. on the latest published accounts filed as at February 28, 2017. “The report identifies £4.25 billion of “In the years ahead, as the Indian new investment last year by the Indian economy develops to become one Datamatics Infotech Limited topped companies, and further jobs being of the largest and most powerful in this year’s list with a growth rate of created as part of their continued the world, the opportunities to boost 103 per cent, while overall companies investment programmes. Given that investment into the UK will grow. To from the technology and telecoms, the report only tracks companies set realise these opportunities the UK and pharmaceuticals and chemicals up as subsidiaries, not branches, we must ensure that, as it attends to its sectors made up 31 per cent and 24 believe the employment numbers are relationship with the wider world post per cent of the list respectively. These even higher than 110,000.” Brexit, it protects and promotes the are the two key sectors where Indian factors that make it such an attractive

Major Indian employers in the UK

Ultimate parent company UK subsidiaries Latest employee number

Tata Motors Limited Tata Motors European Technical Centre Plc, Jaguar Land 37,832 Rover Automotive Plc, Incat International Plc

Tata Steel Limited Tata International Metals (UK) Limited, Tata Steel Europe 29,814 Limited

Essar Global Fund Limited Essar Energy Limited, Essar Capital Services (UK) Limited, 4,576 Aegis Outsourcing UK Limited

CESC Limited Firstsource Solutions UK Limited 3,687

HCL Technologies Limited HCL Bpo Services (Ni) Limited, HCL Technologies UK 2,804 Limited,HCL Insurance, BPO Services Limited, HCL Great Britain Limited, Axon Group Limited

Cox & Kings Ltd Holidaybreak Limited, Holidaybreak Education Limited, 2,503 Cox & Kings (UK) Limited

TVS Logistics Services Limited Circle Express Limited, TVS Logistics Investment UK Limited 1,506

Tata Chemicals Limited Tata Chemicals Europe Limited, Home eld Pvt UK Ltd, 1,414 Brunner Mond Group Limited, Tata Capital Plc

Hinduja Global Solutions Limited Hinduja Global Solutions Europe Limited 1,265

Source: India Meets Britain Tracker 2017 businesses are continuing to find Among the other Indian firms listed in destination for Indian investment. growth opportunities by diversifying the tracker include Ksk Power Ventur The UK and India have much to offer into new spheres of activity, the report Plc, ranked second with a 90 per cent each other and both countries should found. The business services sector growth rate, and Bharti Airtel (UK) Ltd, commit to re-forging their historic entered the top three for the first time ranked third with 84 per cent growth. relationship for a prosperous future,” with 11 per cent, up from 6 per cent in Of the 55 that made the fastest- he said. 2016 and just 3 per cent in 2015. growing list, 23 are new entrants while 32 featured in last year’s list. Just London continues to strengthen its Shuchita Sonalika, Director and Head under half the companies included in dominance as the leading destination of CII UK, said: “The report shows this year’s tracker recorded a 25 per for Indian investment in the UK. Of the that Indian companies continue to cent growth rate or above. fastest-growing Indian companies, 44 strengthen their economic impact in per cent are now based in the British the UK. While IT and telecom sector Chande, however, cautioned that capital, up from 39 per cent last year retains the largest composition, while the 2017 Tracker shows a and 25 per cent in 2015. www.indiaincorporated.com May 2017 27 GUEST COLUMN SPECIAL EDITION of Europe that became where there is good education, a a leader of world trade. developed financial sector and sound It is the government’s governance. Here, the diversity of ambition to reclaim the Commonwealth is its strength. that crown, building a Trade is never a zero sum game, and truly global Britain. Our closer commercial ties between the Commonwealth partners Commonwealth nations will not only are integral to this vision. spread prosperity, but knowledge, research and expertise as well. Many of the Commonwealth nations Sadly, the benefits of free trade all too have witnessed the often go unrecognized, and a rising transformations that trade chorus of protectionism threatens can bring. We may be to drown out the case for a free and economically diverse, open global trading system. but the free flows of goods and resources Protectionism may be politically that are the hallmark of seductive, yet it is economically an interdependent global damaging and socially regressive, economy have impacted with tariff costs falling most heavily the lives of billions of on the poorest in society, those people, as prices fall whose standard of living relies on the and new products competitive pricing of a global market. become available. Not a time to Those nations who have long Yet free trade has also benefited from free trade must not pull up the been the means by which pull up the drawbridge and deny we have liberated millions those same benefits to others. All of our fellow human beings nations of the Commonwealth have drawbridge from poverty. Across the opportunity to work together, the world, the last three championing free trade to improve by Liam Fox decades have seen the the lives of our citizens. At the same single greatest decrease in time, we must ensure that we have hosted the inaugural Commonwealth material deprivation in all the tools in place to help and protect Trade Ministers’ Meeting, an event that of history. those who have not materially brought together politicians, officials benefitted from the global age. Iand policymakers from over twenty I have long believed that Commonwealth nations. It is a testament free trade is the most Every system has its limitations, and it to the strength of the Commonwealth that powerful tool at our is only by recognising and alleviating so many of its countries were represented disposal to help those in the inequalities of globalisation that at this landmark meeting, during which need around the world. As we can build a fairer, more prosperous we discussed the opportunities for trade, the United Kingdom leaves world. The Commonwealth’s 52 investment, and enhanced friendship that the European Union and member states include some of the lie ahead. recasts its place in the largest and richest countries on earth, world, we will proudly carry as well as some of the smallest and We met at a time of great change for the the standard of free and least developed. It is time to lead the United Kingdom. As we begin the process open trade as a badge of world on a new path, building upon of leaving the European Union, there will be honour; a commitment to our shared experience, friendship challenges ahead, yet also unprecedented spread prosperity to and values to embrace economic and opportunities. For the first time in over 40 all mankind. commercial freedoms and spread years, we will have our own, independent prosperity to every corner of the trade policy, allowing us to renew bonds Yet trade cannot be an globe. The Commonwealth may be a of trade and commerce with our partners isolated policy objective, product of history, but we are ready, across the globe. As the Chancellor said and commercial freedoms and willing, to meet the challenges of recently, we are opening a new chapter in do not exist in a political the future. our country’s history. vacuum. A free and open trading environment is only This country has long been associated part of a continuum that Liam Fox is Secretary of State with both the concept and practice of free extends through security to trade. We are the nation of Adam Smith and political and social stability. for International Trade in the UK David Ricardo; a small island on the edge Cabinet. Trade can only truly flourish

28 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION

ccording to the IMF, the on earth, as well as some of the a moral dimension to our mission. Commonwealth countries smallest and least developed. While Liberation from poverty and the whose imports of goods and our diversities might make a single sharing of prosperity are both Aservices are likely to grow fastest over trading model difficult, if we work achieved by the same policy of free the next five years are Mozambique, together to communicate the benefits and open trade in a liberal, rules- Bangladesh, India, Brunei, Ghana of free trade, while addressing the based system. and Sierra Leone. Many more challenges of globalisation, then we countries represented here today have the opportunity to build a global At a time when there are renewed are also experiencing rapid economy that works for everyone. threats to the achievements of recent economic development. years, we – some of the world’s This Commonwealth of Nations oldest and most resilient friendships This represents not only a great has the opportunity to lead the and partnerships – can provide the opportunity for their citizens to share defence of free trade, working leadership that will guarantee the in the proceeds of global prosperity, together to shape new policies and opportunities that the next generation but it represents tremendous approaches, showing the world a deserve to have and with them our opportunities to importers and route to prosperity that lies through own prosperity and security. exporters from across the whole partnership, not protectionism. Commonwealth, a genuinely We have seen, in our own time, what win-win situation. Our trade ministers’ meeting is the first can be achieved by a free and open step in realising this vision. Our joint global economy with the support of It is not the concept of globalisation, discussions and bilateral meetings will our international partners. nor the liberalisation of free-trade, be a foundation upon which to build. that should be the target of those who Every agreement that we reach and Our diversity is our strength – we rightly want to see the elimination every barrier that can subsequently have much to learn from one another, of the scourge of global poverty but be removed will materially improve the and a vast wealth of experience, the elimination of corruption and the lives of our peoples across the globe. knowledge and talent to draw upon. improvement in governance in many Indeed, the Secretariat has also We must leave no stone unturned and developing countries. But at the same organised a summit designed to help no challenge avoided on our quest time we need to ensure that we have developing Commonwealth nations to ensure that those who come after the tools in place to help and protect benefit from India’s global value us are given every opportunity that those who do not materially benefit chains, tapping into the diversification we can leave to them, a world rich in from the global age. of their export markets and prosperity, security and opportunity. improvements to their supply Our 52 member states include some chain capacity. I cannot conceive that there is a more of the largest and richest countries worthy challenge for us to face and There is not only an economic but conquer together.

*Excerpts from the Minister’s speech at the inaugural Commonwealth Trade Ministers’ Meeting in London in March 2017. www.indiaincorporated.com May 2017 29 FACE TO FACE SPECIAL EDITION India has become a pivotal power of the 21st century

‘India Global Business’ caught up with India’s minister of state for external affairs, M.J. Akbar, during a recent London visit to attend the Commonwealth Ministerial Action Group (CMAG) meeting.

he Commonwealth must it should increase the things that it Narendra Modi’s first speech in become more people-centric has in common, rather than reduce, Parliament, he articulated the and find ways of creating and certainly it should add something government’s vision as “poverty Tmeaning for the citizens of the 52 to the wealth of this group and find elimination” over poverty alleviation. member countries, India’s minister of ways of cooperation and creating state for external affairs M.J. Akbar meaning for the people who live in the “And, this is not an open-ended believes. Commonwealth,” he noted. objective but one defined within a time-frame… to take India to the high In his message at the Commonwealth The author and Rajya Sabha MP also table of world affairs and knowing that Ministerial Action Group (CMAG), the held talks with UK ministers Priti Patel the steps to that high table are not minister also highlighted India’s hope and Alok Sharma and addressed an built by a military framework or war that the organisation will work towards audience of MPs and peers at the but built through economic policies increasing the things it has House of Commons complex on ‘India and people’s prosperity,” he said. in common. in the changing world’. The senior BJP leader highlighted how Modi’s “radical thinking” had led “The Commonwealth should not just “India is on a mission that is a search to reforms across different sectors, be an exercise in meetings between for prosperity. But prosperity and which were transforming the lives of governments. It must become more its first cousin development are not ordinary people. people-centric,” Akbar said. enough to describe what Indians “We have no hostility towards want. India wants a prosperity that “Miracles are happening … the mobile any one. We believe that the is shared, it wants it within and phone is becoming the greatest Commonwealth is a values-based internationally,” Akbar said. instrument, not only of literacy but organisation and should really keep economic transaction. The digital on doing what its name suggests… Making a reference to Prime Minister revolution is bringing about a radical

30 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION FACE TO FACE change in the lives of the poor,” to India’s aspirations for a permanent stressed that this must be expanded he said. seat in the UN Security Council. to nine, to include “sustained support At the CMAG meeting in London for terrorism and radical extremism”. Singling out terrorism as the major earlier in March, India reportedly India was also successful in keeping obstacle to such a prosperity, pushed for sustained support for action against Bangladesh off the Akbar stressed that India will not agenda against Pakistan’s concerted allow the forces of violence in its efforts at the CMAG meeting. neighbourhood to succeed. WE HAVE NO HOSTILITY It was also agreed that India will “India has become the pivotal power TOWARDS ANY ONE. play a key role with the Maldives, of the 21st century because this WE BELIEVE THAT which had left the Commonwealth century will be controlled by which THE COMMONWEALTH last year after CMAG had put it on shape Asia takes… If the forces that IS A VALUES-BASED notice for undermining democratic inspire violence begin to expand, ORGANISATION AND institutions. The CMAG decided that the implications are very grave. We regional countries should continue to won’t allow it, because of our security SHOULD REALLY KEEP ON engage with the island nation to try prowess, our belief system, our DOING WHAT ITS NAME and bring it back into the fold of the philosophy. The world must recognise, SUGGESTS… IT SHOULD Commonwealth. participate and join India in this INCREASE THE THINGS battle,” he said. THAT IT HAS IN COMMON, Pakistan ruled itself out from playing The minister also expressed dismay a role until the Maldives government at the United Nations’ continued RATHER THAN REDUCE, improves its conduct. However, the struggle to find a definition for AND CERTAINLY IT SHOULD Indian side was in agreement with terrorism since 1996. ADD SOMETHING TO THE other member countries to play the WEALTH OF THIS GROUP role of interlocutor and continue the “How do we fight an enemy we can’t process of dialogue in the region. define,” he questioned, calling on The central message from the Indian

Akbar at House of Commons multi-lateral frameworks like the UN terrorism and radical extremism side was of a more “people-centric” to recognise the need to reflect the to be added on as grounds approach within the Commonwealth, realities of the 21st century. for disqualification from the with a focus on development and Commonwealth. poverty elimination. “No international institution can remain mired in the past. We There are currently eight grounds on The CMAG is held for ministers from believe that there has to be, in all which the Commonwealth can take the 52 Commonwealth countries international fora, a re-examination action against a member-country, to raise important issues and and finding a purpose for the 21st including violation of democratic action points for the benefit of the century,” he said, making a reference values and good governance. India organisation’s membership. www.indiaincorporated.com May 2017 31 SECTOR FOCUS/Energy SPECIAL EDITION

UK-India can capture a carbon collaboration by Aniruddha Sharma

Carbon capture and storage is a field India and the UK have great potential to collaborate on, writes the founder of a clean carbon company.

he UK and India have a help each other when it comes to capture has been a tricky one, notably history of collaboration when promoting carbon capture technology with the cancelling of a £1 billion grant it comes to energy, something – something which will be vital to for developing new CCS technology Twhich looks set to continue for tackling both countries’ respective in 2015. But as beneficiaries of a the foreseeable future. Notably, climate change challenges. While the UK government grant in the past, ahead of the November 2015 Paris concept of CCS (carbon capture and we know that there is a real desire climate summit, the two countries storage) is already familiar in both to explore the opportunities that penned a comprehensive package of markets, being widely referenced carbon capture affords. However, collaboration on energy and climate in the media, the concept of CCU there are clear barriers in the way of change, including commercial deals and the idea of putting the captured successful development. For example, worth £3.2 billion, and a £10-million carbon dioxide to practical use is unlike India, the UK has no proven joint research partnership into new less well known, but arguably more demonstration in place, while some commercially important. It is this re- industries are poorly incentivised, or low-carbon technologies. use element that I would like to focus not incentivised at all, to take up or at on, as I believe it has huge economic least consider CCU. Energy collaboration is also a key potential for both countries. focus area of the India-UK Strategic In India, we were able to successfully Partnership. As a UK-based company In standard carbon capture launch the first unsubsidised, with Indian roots (my co-founder, processes, the captured carbon industrial-scale example of CCU in Prateek Bumb and I were college dioxide (CO ) is usually buried deep operation in the world today, at the students at IIT Kharagpur when we 2 underground. But it can be used to end of 2016. We are helping Tuticorin came up with the idea for Carbon make useful products as well – this Alkali Chemicals (TAC) a soda ash Clean Solutions), we have a lot of process is called carbon capture producer, to capture CO2 from their experience to draw from in both India and utilisation (CCU). CCU is a vital own thermal plant in Tuticorin, Tamil and the UK. technology, allowing industries such Nadu, and convert it to soda ash. as power and coal to decarbonise From what I have seen, I believe themselves profitably and sustainably. Our technology enables us to capture both countries can learn from and The UK’s relationship with carbon not just CO2, but soot and other

32 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION SECTOR FOCUS/Energy of new green and clean products for UK and EU markets where carbon intensity reduction targets already exist. So does India have all the answers to commercialising carbon capture technologies? Not quite.

Our business was able to thrive thanks to grants from the UK and US governments, and research facilities in the UK and Europe. Indeed, Western countries have the infrastructure to support new technology ideas and that’s what needs to be developed in India.

It needs to provide more physical settings for innovators to start working on products - labs, product shops, idea workplaces, and so pollutants from the plant. Therefore, on. India also needs to allocate TAC has now been able to completely significant national budget to R&D decarbonise their plant, and capture IN STANDARD CARBON and partnerships with start-ups. Last 60,000 tonnes of CO2 per year in the CAPTURE PROCESSES, but not least, it is imperative that IP process. The soda ash produced from THE CAPTURED (intellectual property) grants and the converted CO2 is then sold as a CARBON DIOXIDE (CO2) enforcement is strengthened, in order raw material to the glass industry. In IS USUALLY BURIED for India to become a true destination a nutshell, CCU has allowed TAC to for IP-based product innovators such become a completely self-sufficient DEEP UNDERGROUND. as ourselves. soda ash producer. BUT IT CAN BE USED TO MAKE USEFUL This is why I think collaboration We currently have more projects like PRODUCTS AS WELL – between India and the UK is so this in the pipeline in India, and we THIS PROCESS IS CALLED important, as there are lessons the think there is real potential for India two countries can learn from each to become a leader in clean carbon CARBON CAPTURE AND other in order to meet their respective technologies – a strategic win in UTILISATION (CCU). CCU energy challenges. The UK has achieving the goals set at COP21. IS A VITAL TECHNOLOGY, expertise from its world-leading The reality is that, despite the rise ALLOWING INDUSTRIES services sectors that can help deliver of renewable energy in India, the SUCH AS POWER AND key Indian priorities – one of which country will continue to depend on is sustainable energy and related coal and gas for much of its energy COAL TO DECARBONISE infrastructure development. needs, as nuclear is unlikely to THEMSELVES PROFITABLY provide a large share in a rapidly AND SUSTAINABLY. On the other hand, India has developing country with an ever- demonstrated that CCU is in fact growing population. Therefore, CCU commercially viable, and has proof is crucial. 10 per cent interest, then surely there that it works, and projects that the UK is an opportunity to get something off can learn from and hopefully emulate. Now that we have overcome the the ground at a more modest, say, 4 demonstration barrier and proved that per cent level. The economics of CCU We are hoping that the UK’s ties to CCU can work in India, our goal is have radically changed in a short India could potentially enable CCU to take this model to other markets, space of time. projects to commercialise in the UK in including the UK. However, before we the not too distant future. can get the technology off the ground It’s worth remembering the scale in the UK, there is other big barrier and size of the opportunity at stake: we need to overcome: Financing. Estimates put the size of the CO2 Aniruddha Sharma is CEO, This is another area where I think the reuse market at more than $1 Carbon Clean Solutions Limited UK can learn from our experience in trillion per annum. CO2 can now (CCSL), and represents CCSL India. We have proved that CCU does be converted into over 25 different in the Carbon Capture Storage not need to be funded by subsidy: If products, transforming it into an asset someone can build a plant in India rather than a burden. I believe that Association (CCSA). based on funding rates in excess of effective CCU could lead to a wave www.indiaincorporated.com May 2017 33 ANALYSIS SPECIAL EDITION

A Commonwealth Agenda for Growth by Lord Marland

The Commonwealth held a first-of-its-kind trade ministers’ meet recently to inject much- needed vigour into the organisation. The man behind the summit writes exclusively for ‘India Global Business’.

he inaugural Commonwealth are grateful for the minister’s support to reduce trade costs worldwide by Trade Ministers Meeting and early advocacy for the meeting 17.5 per cent. The focus now should (CTTM) on 9th March 2017 to go ahead. Out of the day’s six be on facilitation of trade in services Twas an important moment for the roundtable discussions came many and India has already shown global Commonwealth. As many as 35 trade important proposals that we will be leadership on this issue. ministers from across the world, looking to develop in the run up to including Australia, Bangladesh, next year’s Commonwealth Heads of In the digital age, the Commonwealth Canada, Kenya, Malaysia, Malta, New Government Meeting (CHOGM) recognises that countries that do not Zealand, Nigeria, Singapore, South in London. harness the power of new technology Africa and the UK, came together and innovation based means of doing not just for the sake of old ties, but Firstly, we are proposing to appoint a business can be left behind. We will to consider how the network can Commonwealth Trade Ambassador be exploring the possibilities of new build an “Agenda for Growth” that will to gage the trade and investment trade technologies such as blockchain challenge economic stagnation and priorities of member countries and developing an ecommerce a growing protectionist clamour in and to scope the potential for the legislative toolkit with the view to global markets. development of a “Commonwealth breaking down trade barriers further. Trade and Investment Accord”, which It is encouraging to see that India would underpin the development of is leading the push to ensure trade trade and investment agreements The SME sector is of vital importance and investment is a priority for the between them. to modern economies and the Commonwealth. We were delighted to Commonwealth is committted to welcome Commerce Secretary, Rita The CTTM was also an opportunity doing what it can to improve the Teaotia, standing in for Commerce for member states to reaffirm their business enivronment for SMEs and Minister Nirmala Sitharaman, commitment to the full implementation help SMEs find a route to market. who was unable to attend due to of the WTO Trade Facilitation The Commonwealth Enterprise responsibilities during the Budget. We Agreement, which has the opportunity and Investment Council (CWEIC)

34 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION ANALYSIS Foreign Trade Policy of 2015) it will require a step change in international commercial diplomacy and the export WE ARE PROPOSING performance of its companies. With TO APPOINT A Indian exports contracting by almost COMMONWEALTH 17 per cent - from $314 billion in fiscal TRADE AMBASSADOR 2013-14 to $261 billion in 2015-16, TO GAGE THE TRADE now is clearly an important time AND INVESTMENT to try to bring this change about. PRIORITIES OF MEMBER With five Commonwealth countries, Bangladesh, Malaysia, Singapore, Sri COUNTRIES AND TO Lanka and the UK, featuring amongst SCOPE THE POTENTIAL the top fifteen importers of Indian FOR THE DEVELOPMENT goods and services, and Australia, OF A “COMMONWEALTH South Africa and Kenya also amongst TRADE AND INVESTMENT India’s fastest growing trade partners ACCORD”, WHICH there are some clear opportunities from better utilisation of the network. WOULD UNDERPIN THE The Commonwealth’s positive brand DEVELOPMENT OF in its eighteen African member states TRADE AND INVESTMENT could also help India realise a $90 AGREEMENTS BETWEEN billion African trade target which, in THEM. 2015, materialised in an actual figure of only $56.67 billion.

The Commonwealth also stands as a global champion for the promotion of democracy, peace and security, good will therefore look to expand its ability to create growth in difficult governance, sustainable development CommonwealthFirst SME export circumstances. In Britain, there has and gender equality – all values that programme. We also welcome the been a historic reluctance to truly India shares. A strong Commonwealth Government of India’s proposal to engage with the Commonwealth as underpinned by a successful trade host a Commonwealth SME Summit a vehicle for trade and investment and investment agenda can help India later this year and the support growth, something our membership to project these values, and India’s India has shown in establishing of the EU has also impeded. But as soft power around the world, giving it the Commonwealth Trade Finance the UK looks to a new future outside a long term competitive advantage. Facility. We will also do more to the EU, there is clearly an enormous suport young entrepreneurs, through opportunity for greater engagement To conclude, a UK finally able to turn the Commonwealth Alliance of with the Commonwealth. However, its attentions to the world outside of Young Entrepreneurs, which CII the UK cannot lead such an agenda Europe alongside an ambitious India Young Indians were instrumental in alone, one from which all member increasingly ready to take its place on establishing, and also encouraging countries could stand to benefit. the global stage can work together to female economic empowerment. harness the momentum generated by As the country with over half of this month’s Trade Ministers Meeting The data puts the Commonwealth’s the Commonwealth’s population, and lead a Commonwealth Trade and huge trade and investment potential a hugely dynamic economy and a Investment agenda. As the build- into context. Between 2003-2013, growing global leadership role, I know up to the Commonwealth Heads of trade in goods and services between that Commonwealth members would Government meeting in London in Commonwealth countries exploded be delighted to see India engage April 2018 begins, the Commonwealth from $266 billion to $592 billion, even more fully with our trade and has a huge opportunity to finally seize registering an annual growth rate of investment agenda. its potential and become a force for about 10 per cent. It is estimated that prosperity and free trade around intra-Commonwealth trade in 2015 This is in India’s interests as well as the world. was $687 billion and is projected to the Commonwealth’s. If the Indian surpass $1 trillion by 2020. That is Government is to hit its goal of the target that we have recommitted doubling the country’s exports to Lord Marland of Odstock is ourselves to at the Trade Ministers $900 billion and elevating its share Chairman of the Commonwealth Meeting. Achieving it will bring of world trade from the current 2 Enterprise and Investment greater prosperity to all our countries per cent to 3.5 per cent by 2020 Council (CWEIC). and highlight the Commonwealth’s (as announced in India’s Five Year www.indiaincorporated.com May 2017 35 INDIA-CANADA SPECIAL EDITION

CANADA AND INDIA CAN TAKE COMMONWEALTH LEAD François-Philippe Champagne is Canada’s Minister for International Trade with over 20 years’ experience working for major companies worldwide. ‘India Global Business’ caught up with the minister soon after the inaugural Commonwealth Trade Ministers Meeting in London recently to explore the potential of India- Canada ties within a broader multilateral context.

36 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION INTERVIEW hat is the status of the rose 8.8 percent to nearly $2.2 billion and investment between our two Canada-India free trade in 2015, as both services exports (up countries. agreement? 10.1 percent) and services W imports increased. They expressed a real desire for our The negotiation of the Canada- governments to further deepen this India Comprehensive Economic partnership. As International Trade Partnership Agreement (CEPA) minister, I also have a mandate to began in November 2010. Nine CANADA IS PURSUING A focus on growing trade opportunities, rounds of negotiations have been NUMBER OF APPROACHES particularly for Canadian small and held to date; the latest of which was TO PROMOTE TRADE medium-sized businesses. I look in March 2015. And, last fall, my AND INVESTMENT WITH forward to continuing to work with predecessor, Chrystia Freeland, met INDIA. OF COURSE, India toward that end. with her Indian counterpart, Nirmala Sitharaman, Minister of State for THIS INCLUDES THE Can the Commonwealth be Commerce and Industry, during the NEGOTIATION OF A leveraged to improve the situation? 3rd Ministerial Dialogue on Trade and COMPREHENSIVE Investment in Toronto. ECONOMIC PARTNERSHIP As you may know, the UK hosted AGREEMENT (CEPA). WE the inaugural Commonwealth In early March, during my first visit to ARE ALSO PURSUING Trade Ministers Meeting on India, I met with Minister Sitharaman THE NEGOTIATION OF A March 9 and 10, 2017 in London. and we discussed the Canada-India During this meeting, myself and FOREIGN INVESTMENT CEPA, in view of increasing bilateral my colleagues, discussed areas trade and investment. We also PROMOTION AND where Commonwealth member exchanged views on the way forward PROTECTION AGREEMENT countries could collaborate to for a Foreign Investment Promotion pursue transparent, free and fair and Protection Agreement (FIPA.) trade relationships and to promote While I cannot speak to the details Canada is pursuing a number of trade, investment and job creation in of the ongoing negotiation at this approaches to promote trade and member countries. time, I can confirm that I took this investment with India. Of course, opportunity to highlight the benefits this includes the negotiation of Canada enjoys a strong partnership of signing and implementing a a Comprehensive Economic and shared values with its modern and ambitious FIPA. Partnership Agreement (CEPA). We Commonwealth partners, including are also pursuing the negotiation India. The Government of Canada An FIPA would provide greater of a foreign investment promotion is firmly committed to opening new predictability and certainty for and protection agreement. These markets and to creating new sources Canadian investors considering agreements will help position both of prosperity, and we see a lot of investment opportunities in India Canada and India as important potential to expand our trade and serve to promote both India destinations for trade and with India. and Canada as destinations for investment. They would establish a investment. It would protect investors framework of legally binding rights Which sectors will Canada through the establishment of a and obligations while ensuring that welcome Indian businesses to framework of legally binding rights governments maintain the right to invest in? and obligations, while ensuring regulate in the public interest. For governments retain the right to Canada, any free trade agreement Priority sectors for the attraction of regulate in the public interest. must reflect Canadian values and foreign direct investment into Canada We look forward to continued work help to strengthen trade by providing include ICT, agri-food, automotive, with India towards finalising new commercial opportunities. aerospace, chemicals and plastics, the agreement. clean tech, life sciences, and oil and The Government of Canada gas. To ensure that Canada makes Why has India-Canada trade also values the ongoing advice the most of every opportunity to remained at low levels? What can and commitment of the various attract global investment and the jobs help step up bilateral trade? business associations that promote that come with it, the Government the Canada-India commercial of Canada is creating a new federal The fact is, between 2012 and 2016, relationship with small and body, an “Invest in Canada Hub.” total trade between Canada and medium-sized businesses. During This new organisation will employ a India grew by 53 per cent. Two-way my recent trip to India, I also met dedicated high-impact sales force merchandise trade between Canada with several Canadian and Indian to promote Canada and will be and India reached $8.0 billion in business leaders and we discussed supported by an increased number 2016, and bilateral trade in services the impressive growth in trade of Trade Commissioners focused www.indiaincorporated.com May 2017 37 INTERVIEW on investment attraction in strategic For all of these reasons, I welcome bilateral relationship with India, as markets around the world., this opportunity to spread the demonstrated by the many ministerial word about Canada’s strengths in visits in both directions over the What are your plans for marketing education in general, and research, last few months. By deepening our Canada as an attractive centre development and innovation in commercial relationship and working of higher education for Indian particular. Canada is a world together on our shared priorities, we students? leader when it comes to investing can ensure continued growth and in research at post-secondary prosperity and offer real opportunities For many Indians, Canada institutions, ranking first among to our private sector stakeholders is perceived as an attractive G7 nations and seventh among and citizens. immigration option rather than a OECD nations. Through the recent destination for a top-notch education. federal budget, the Government of There is a school of thought that The fact that Canadian educational Canada is proposing to invest $117.6 says the Commonwealth should be institutions rank with the best in million over eight years to create re-imagined as a trade bloc. What the world is a bit of a secret in approximately 25 Research Chairs. do you think? India and we want to change that. This will attract top-tier international That is why we are reaching out to scholars and researchers to Canada, Canada believes that the top-quality Indian students through and enhance Canada’s reputation Commonwealth’s real added value activities like the EduCanada as a global centre for innovation, is to help build the pillars of trade Undergraduate Outreach Tour and science, and research excellence. – promoting stability, predictability the EduCanada MBA Showcase Tour and rule of law in member countries. Moving forward, the Commonwealth, to promote our institutions and the Canada and India have much in with its diverse group of member amazing opportunities they offer. In common; isn’t it time the two countries, could be a great forum addition, many Canadian institutions governments took steps to forge for further discussions and work on participate in a broad range of other closer ties? elements of Canada’s progressive education events across all of India. trade agenda. Canada and India have long-standing Canada is home to some of the and positive bilateral relations As anti-globalisation and hostility to top universities in the world. built upon shared traditions of trade agreements rises, we need to Times Higher Education’s ‘World democracy, inclusion and strong ensure that the legitimate concerns University Rankings’ counts a total interpersonal connections through of our citizens are taken seriously of 26 Canadian institutions among an Indian diaspora of more than 1.2 and addressed concretely. Canada is million in Canada. We also enjoy a the world’s best, including eight currently pursuing a progressive trade Strategic Partnership underpinned Canadian universities in the top agenda that ensures the benefits of by Ministerial Dialogues on Foreign 200. In addition, compared with the trade are more widely and equitability Policy, Trade and Investment, Finance US and others, Canada provides shared between all segments of and Energy. more affordable study options, society. Canada will continue to work simpler application processes and together with its Commonwealth The Government of Canada is more opportunities for permanent partners to create the right conditions committed to strengthening the residency. for our businesses to thrive.

EXPERT VIEW SPECIAL EDITION

India must share leadership of the Commonwealth by Jitesh Gadhia

It is time for the Commonwealth to introspect on its role for the 21st century and look at adding new members and acquiring a sharper financial focus.

s a British citizen of Indian However, multilateral organisations This pragmatic solution secured the origin born in Uganda, I enjoy are not fashionable at the moment, participation of India, which could a triple connection with the given the rise of nationalistic and easily have taken a more anti- ACommonwealth. I was therefore protectionist tendencies, so we imperialist stand. To its credit, India’s drawn towards speaking in a recent should legitimately ask: why would leadership was more far-sighted debate on the Commonwealth in 51 countries want to play ball with and adopted Mahatma Gandhi’s the House of Lords — almost like a Britain? As part of addressing this philosophy of “forget and forgive”. magnetic field. fundamental question, it is critical that we examine India’s future role. Speaking on 17 May 1949 to the The focus of my remarks was on two Indian Parliament, Prime Minister themes. Firstly, the relative roles of The modern Commonwealth Nehru —previously an arch opponent Britain and India as two linchpins effectively started in 1949 with the of continued Commonwealth among the Commonwealth’s 52 London Declaration, which allowed membership — said that: members and, secondly, suggestions India to remain a member even “I had a feeling when I was on some bold steps which the though it was no longer a dominion, considering this matter in London … Commonwealth should consider to and thereby it became the first in a small measure perhaps, I had secure its relevance well into the republic to do so. As part of this done something that would have met 21st century. settlement, India agreed to accept the with the approval of Gandhiji”. British sovereign as a symbol of the Britain’s interest in rejuvenating the free association of its independent Today, India represents more than Commonwealth is self-evident. It suits member nations and, as such, as half the Commonwealth population the country’s post-Brexit narrative Head of the Commonwealth. of 2.4 billion and is the joint largest and objectives, particularly on trade. economy alongside the UK. For

40 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION EXPERT VIEW obvious reasons, Britain has attract Japan or the Gulf states, or of Secretary-General should be seen historically been seen as primus even some European countries— as one of the top global roles that inter pares among Commonwealth perhaps those sitting outside the public servants covet in the same members but I believe it is a mantle Eurozone? Given the shifting plates of way that there is fierce jockeying for that should now be shared with India. the world geopolitical order, this is an position to become the UN Secretary- opportune moment to be brave and General, the head of the IMF or This might be seen as a sensitive think big. president of the European Council. subject but we should not be afraid to address it directly. This is not to The second proposal is to create We should absolutely aspire to entice dilute the equal value and status of a sharper financial focus that a David Cameron or a Stephen every member but it recognises the provides some more glue to bind the Harper; a Kevin Rudd or a Manmohan geopolitical realities and choices Commonwealth together. Despite the Singh to become Secretary-General. open to an emerging superpower relative unpopularity of multilateral This would be a worthy ambition and such as India, for which a seat on the organisations it is interesting to note help to take the organisation to the UN Security Council is long overdue that two new bodies have been next level. and only a matter of time. created in recent years, both of them banks: the Asian Infrastructure It is an interesting thought experiment The second area which we should Investment Bank and the BRICS’ New to apply the “visitor from Mars” assess candidly is the future Development Bank. The idea of a test to the Commonwealth and

Commonwealth Trade Ministers’ Meet in London ingredients of success. Yes, the Commonwealth bank has been doing ask whether we would create the Commonwealth enjoys some the rounds for some time but there is organisation if it did not exist today? alluring features: scale, growth, little point in creating a copycat entity. My heart, influenced by my triple youth and diversity. All these are However, the other two are focused Commonwealth identity, would, of certainly necessary but in my view on infrastructure and development course, say yes, but my head would not sufficient to take the organisation respectively, so there does appear hesitate a little more. However, to the next level. I believe the to be a gap in the market for an given that the Commonwealth does Commonwealth should consider three institution focused on global trade exist, we should unequivocally build specific suggestions. finance. This would provide a sharper and strengthen it further so that it and more practical focus for the achieves its full potential. The first is to aggressively add new Commonwealth and should be members. As statisticians would considered very carefully. In this effort, India must take a confirm, the power of any network leading role. is proportionate to the square of Thirdly, I believe that it is appropriate the number of nodes, so that each to review the leadership profile of the new member is of increasing value organisation. In doing so, I am in no to the others. It is hugely positive way criticising the current or previous Lord Jitesh Gadhia is a UK- that Mozambique and Rwanda have secretariat of the Commonwealth and based businessman and joined in recent years and that South support the laudable reform agenda Sudan and Gambia are in the queue. advocated Baroness Scotland. investment banker and was However, the Commonwealth needs made a Life Peer last year to be much more ambitious. Why not However, I feel strongly that the role www.indiaincorporated.com May 2017 41

SPECIAL EDITION ANALYSIS

India is a major Brexit trade priority by Tim Hewish

IndiaA London-based is policya major expert weighs Brexit up the challenges trade and opportunities priority thrown up by Brexit to strike a stronger India-UK dynamic.

alk of Brexit is never far from cent. India climbs the rankings to a Scotland. This priority is also reflected the headlines in the UK press. strong second with businesses in the with large UK companies. Theresa May triggering Article Midlands, the North, and the South We have had positive feedback T50 signaled the start of the process. East of England as well as those in from a number of countries, such as This presents significant challenges Singapore, stating that these findings and opportunities for Commonwealth will be useful when engaging the countries, with India being a prime British Government. I encourage the example. A NOTE OF CAUTION, Indian Government to do the same. AUSTRALIA, CANADA, New research from my organisation, AND NEW ZEALAND I have also made the case in a joint the Royal Commonwealth Society, HAVE TRIED TO BROKER pamphlet on Commonwealth trade reveals an overwhelming majority TRADE AGREEMENTS with British MP James Cleverly and of British businesses want to see supported through a foreword by the the Government prioritise trade WITH INDIA WHICH HAVE former Australian Prime Minister, deals with the Commonwealth. It is STALLED ON THE BACK OF Tony Abbott, that India is one of the significant that nearly three quarters LABOUR MOBILITY. MANY major Brexit trade priorities. As of of all UK businesses want an Indian OF THESE DISCUSSIONS last year, India was the UK’s largest trade deal. India is in fourth place HAVE CONTINUED FOR Commonwealth export destination as a priority for the UK’s business FIVE YEARS WITH LITTLE and twinned with its 1.4m diaspora community for trade opportunities spread across every city in the UK - RESOLUTION. THE UK with Commonwealth countries the personal, cultural, and economic post-Brexit. MAY FIND ITSELF IN THE ties run deep. SAME POSITION WITHOUT As many as 72 per cent of British FACTORING IN THIS ISSUE. There is also published evidence businesses think that the Government which estimates that two-way trade should prioritise trade with India. would increase by 26 per cent Australia tops the rankings on 90 per through the cutting of tariffs with the www.indiaincorporated.com May 2017 43 ANALYSIS SPECIAL EDITION

UK Chancellor Philip bilateral trade deal. There must also Hammond with Indian be more voices championing India External Affairs Minister in the Cabinet as this is whether the Sushma Swaraj decisions will be won and lost. A note of caution, Australia, Canada, and New Zealand have tried to broker trade agreements with India which have stalled on the back of labour mobility. Many of these discussions have continued for five years with little resolution. The UK may find itself in the same position without factoring in this issue.

Furthermore, in the UK we often see how Brexit can benefit us; however, we should pause to think how India can gain in a partnership of equals. Clearly India has global ambitions. The UK presents India with an opportunity to complete a deal with a Permanent Member of the UN Security Council and its first agreement with a western member of the G7, so far it only as an FTA with its regional neighbour Japan. This is political and diplomatic prestige that India desires. Britain can be the country which helps India enhances that level of esteem. authors suggesting that an India-UK Britain is of equal importance. Much deal would be easier to negotiate than has been made of this decline notably However, perception is crucial in the current EU-India discussions. from the University of Birmingham’s politics. In his review of Shashi Chancellor, Lord Bilimoria. Tharoor’s book, ‘The Times’ columnist However, conversations I have had Matt Ridley is astute in identifying that often note the issue of greater visa There is a booming market supply Brexit can present an opportunity to liberalisation for Indian nationals as of young Indians keen to study at renew UK-Indian relations as: “More a stumbling block to any trade deal. elite global universities. This will than almost any other country, India This is encapsulated in the new continue to grow with 41 per cent of will matter to Britain in the coming Indian High Commissioner to the UK’s Indian’s billion plus population under years: as a market, an ally, an statement that: “For India – mobility the age of 20. The UK will lose out innovator, a source of talent and — is key”. in educating Indian talent and the despite everything — a friend.” economic and social values this That is why, in partnership with presents if reform does not What is clear is that a trade deal is other leading aviation and tourism take place. there for making. British business groups, we have recommended that have shown demand but the UK Indian visitors to the UK be given Policy solutions acceptable to the Government must make an offer the same special deal as Chinese Home Office will need to be found mindful of the historic ties, which tourists – a two-year visa costing to counteract this reverse in a delivers a meaningful contemporary £87. The UK-Indian Year of Culture, post-Brexit era. The now Foreign and lasting relationship that enables launched at Buckingham Place last Secretary, Boris Johnson, offered one the connections of our two peoples month, provides the opportune time such idea in 2015 when he called working together. to introduce such a scheme. This for a Commonwealth student visa would help generate further goodwill for Indian nationals allowing them to and signal British intent on the work for two years post-study. seriousness of its attempts to Tim Hewish is Director of court India. Therefore, he can do so again from a Policy & Research, Royal senior Cabinet position. An offering Commonwealth Society. Addressing the falling international of visitor and student work visas can Indian student numbers heading to help grease the gears of a future

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IndiaInc advert_v02.indd 2 28/04/2017 17:07:49 SPECIAL EDITION INDIA-US H1B: The visa that bites by India Inc. Staff

As the Donald Trump administration begins to deliver on his poll promise of cracking down on the alleged misuse of H1B visas, Indian IT companies are feeling the pinch. “We’re bringing in BDO. The partner’s already on it.” onald Trump’s election rhetoric recently said “an entry-level computer department after the USCIS and BDO India Advisory is returning to bite the Indian programmer position would not the Justice Department to say it will IT sector as policy formula- generally qualify as a position in a coordinate more closely with other Dtions of the new US administration. specialty occupation”. This means US government departments in its Indian IT companies can no longer efforts to protect US workers and, if First, here are some updates on the send personnel from India to fill up necessary, prosecute offenders. ARBINDER CHATWAL The India Advisory Services team is a unified network of people with bad news on H1B visas, the visa such a position in the US. +44 (0)238 088 1940 experience in serving UK businesses looking to grow within the Indian category mainly used by Indian It also joined the Justice Department [email protected] market and Indian businesses looking to invest in the UK and Europe. It IT companies to ship Indian IT Nomura Research analysts have in cautioning US employers not to professionals to the US. found that about half of labour use H1B visa holders to discriminate brings together dedicated cross-service-line and sector experts who focus condition applications filed by Indian against US workers, and pointed on ensuring that your business receives seamless services customised to Tougher norms for H1B visas IT companies were for entry level out that this particular visa category your immediate, short and long term business needs across borders. In keeping with his election pledge or Level1 positions last year. These can be utilised to import foreign to crack down on companies using applications are sine qua non for H1B workers only if workers with relevant the H1B visa to import Indian IT visa applications. qualifications were not available in professionals into the US, his the US. Audit | Tax | Advisory government has changed the relevant Probe into misuse www.bdo.co.uk guidelines not only to make it more In another advisory issued to US Meanwhile, two top US Senators, difficult for Indian companies to ship companies, the USCIS agency has Chuck Grassley and Dick Durbin, BDO LLP is authorised and regulated by the Financial Conduct Authority to conduct investment business. sorely needed foreign talent to the said it will “rigorously” use its authority supported the US government’s BDO is the brand name for the BDO network and for each of the BDO Member Firms. © 2017 BDO. All rights reserved. US but also to increase their costs of to investigate H1B visa violators, actions and said: “The President operations in other ways. indicating a hardening of attitudes in should continue using his authority to the Trump administration on the issue. prevent outsourcing companies from The US Citizenship and Immigration The US Labor Department displacing American workers.” Services (USCIS) agency has became the third US government

www.indiaincorporated.com May 2017 47

IndiaInc advert_v02.indd 2 28/04/2017 17:07:49 INDIA-US SPECIAL EDITION Hitting where it hurts an easy US visa regime is vitally Director General Chandrajit Banerjee Indian IT companies are the largest important for its health. And Indian has said in a statement. user of H1B visas. In 2018, the US IT professionals are the biggest plans to issue 85,000 H1B visas, but beneficiaries of the H1B visas, which “A cornerstone of relations between experts said a change in the minimum allow professionals to work in the US. India and US is the thriving wage criteria for issuing such visas commercial exchange between the would hit the bottomlines of Indian IT Worryingly, a substantial portion countries. As India surges forward to companies, which grew at a record of their revenues still come from become the fourth fastest growing slow 9 per cent in 2016-17. relatively lower end work, which give source of FDI into the US, it is critical steady margins, but which can no that we recognise the positive impact There is little likelihood of any great longer generate high levels of growth of Indian business investments in the improvement in the current for the Indian IT sector. And despite country. In Virginia, Indian companies financial year. their best efforts, Indian IT companies have been key players in creating have failed to move to move up the jobs and engaging communities. I Indians are job creators in the US software services value chain. hope to see this trend continue in the Rational arguments often get lost future, with increased Indian business when fears of job losses to foreigners The politically incorrect secret operations in the country,” Senator leads to isolationist political rhetoric. is that Indian IT companies still Warner, Virginia, Co-Chair, Senate In the US, too, more and more people focus primarily on “exporting” IT India Caucus, was quoted in another are increasingly viewing protectionism professionals to remote locations to statement. as a panacea for its domestic address their clients’ needs. Another report by Indian IT industry economic problems, including lobby Nasscom, released in 2015, joblessness. pointed out that the much maligned Indian IT sector supported more But a study titled “Indian Roots, INDIAN IT COMPANIES ARE than 400,000 jobs in the US and American Soil” by the Confederation THE LARGEST USER OF contributed more than $20 billion in of Indian Industry (CII) and Grant federal taxes over the last five years. Thornton (GT) last year, about 100 H1B VISAS. IN 2018, THE US Indian companies have invested $15 PLANS TO ISSUE 85,000 “The Indian IT industry has definitely billion in US industry and created H1B VISAS, BUT EXPERTS made a big contribution to the US 91,000 direct jobs in that country. SAID A CHANGE IN THE economy,” Indian Commerce Minister MINIMUM WAGE CRITERIA Nirmala Sitharaman has said. The highlights of the report are: FOR ISSUING SUCH • About 100 Indian companies “There has always been a popular have invested $15.3 billion and VISAS WOULD HIT THE apprehension that Indian IT industry created 91,000 direct jobs across BOTTOMLINES OF INDIAN IT benefits from the United States and the US COMPANIES, WHICH GREW takes away job from the US.” • The top five states in terms of AT A RECORD SLOW 9 PER job creation by Indian companies CENT IN 2016-17. Busting the cheap labour myth are New Jersey (9.278 jobs), Another study by the Brookings California (8.937 jobs), Texas Institute has also belied the myth (6,230 jobs), Illinois (4,779 jobs) that cheaper Indian IT professionals and New York (4,134 jobs) Contribution to US economy are snatching jobs from qualified • The top five states in terms of FDI “Indian Roots, American Soil” is Americans in the US. The study by Indian companies are Texas CII’s flagship event on Capitol Hill points out that most Indian workers ($3.84 billion), Pennsylvania and is part of our ongoing effort to on H1B visas generally earn more ($3.56 billion), Minnesota ($1.8 highlight the positive stories of Indian than comparable US workers with billion), New York ($1.01 billion) companies’ contributions to the US similar educational qualifications. and New Jersey ($1 billion) economy and society. • The average investment per state Indian IT companies create and is $443 million Our aim, through this event, is to protect jobs in the US in the • Six out of seven Indian highlight the range and depth of following ways: companies present there plan to Indian investments in the United invest more in the US States. India is now the fourth-fastest • They provide us businesses • 90% of the companies plan to growing source of investments into with advanced IT services hire more employees locally in America – this is a very critical aspect and support, which helps US the next five years. of the burgeoning bilateral US-India companies maintain their global business story and one that has an competitiveness, enter new Low hanging fruit immediate and visible positive impact markets, gain market share and The US accounts for 60 per cent of on the local communities where remain profitable the Indian IT sector’s annual revenues these companies operate. It’s a story • Indian IT companies have of about $150 billion. That is why that needs to be told and re-told,” CII invested billions of dollars in

48 May 2017 INDIA GLOBAL BUSINESS INDIA-US • setting up facilities in the US and This has allowed politicians and increase in visa fees as this could be created thousands of direct jobs other purveyors of doom the space viewed as a non-tariff barrier. there to peddle populist and protectionist This is against the spirit of free • Indian IT companies directly slogans based on demonising trade practices on the movement of employ about 100,000 US “foreigners who steal US jobs”. personnel. So, we make take the US citizens and support jobs for to WTO.” three times as many Americans Such rhetoric, which would usually • Over the last four years, job be ignored by most Americans in The issue is bound to come up for creation by Indian IT companies prosperous times, is finding takers further discussions when Prime in the US grew 10 per cent because jobs are difficult to come by. Minister Modi meets President Trump annually compared to a 1.7 per later this year. cent overall job growth in that Two pronged remedy country. Speaking to India Incorporated for Simultaneously, the Indian IT sector Why then is there the outcry in the US a report on the issue in the run-up will also have to climb up the value against foreign businesses in general to the US presidential elections, chain and develop more proprietary and the Indian IT sector in particular? Sitharaman had said: “We have software and other knowledge Empirical evidence suggests that discussed the visa-related matter with processes that it can then leverage people turn insular and politicians the US at various levels. We have for revenues. turn protectionist in times of economic talked to US Trade Representative hardship and slowdowns. The US and US Commerce Secretary both Till then, allegations of Indian and, indeed, the entire western world during our strategic dialogue and professionals “stealing” jobs of US has yet to recover from the sub-prime later. We have also made it public citizens would remain a political crisis of 2008. that we may approach the WTO on hot potato.

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THE WARNING

The US Department of Homeland Security has issued a stern warning to prevent the misuse and/or fraudulent use of H1B visas by employers in the US.

US Citizenship and Immigration abuse of the H-1B program may be abusing the system. Services (USCIS) today more likely to occur, and determine Employers who abuse the H-1B announced multiple measures whether H-1B dependent employers visa program negatively affect U.S. “to further deter and detect H-1B visa are evading their obligation to workers, decreasing wages and job fraud and abuse.” make a good faith effort to recruit opportunities as they import more U.S. workers. foreign workers. The H-1B visa program should help U.S. companies recruit highly-skilled To further deter and detect abuse, foreign nationals when there is a USCIS has established an email shortage of qualified workers in the THE H-1B VISA PROGRAM address which will allow individuals country. Yet, too many American SHOULD HELP U.S. (including both American workers and H-1B workers who suspect workers who are as qualified, willing, COMPANIES RECRUIT and deserving to work in these they or others may be the victim of fields have been ignored or unfairly HIGHLY-SKILLED FOREIGN H-1B fraud or abuse) to submit tips, disadvantaged. Protecting American NATIONALS WHEN THERE alleged violations and other relevant workers by combating fraud in our IS A SHORTAGE OF information about potential H-1B fraud employment-based immigration QUALIFIED WORKERS IN or abuse. programs is a priority for USCIS. THE COUNTRY. YET, TOO Information submitted to the email Beginning today, USCIS will take a MANY AMERICAN WORKERS address will be used for investigations more targeted approach when making WHO ARE AS QUALIFIED, and referrals to law enforcement site visits across the country to H-1B WILLINGAND DESERVING agencies for potential prosecution. petitioners and the worksites of TO WORK IN THESE FIELDS H-1B employees. Existing H-1B Fraud Measures HAVE BEEN IGNORED OR Since 2009, USCIS has conducted USCIS will focus on: UNFAIRDISADVANTAGED. random administrative site visits Cases where USCIS cannot validate PROTECTING AMERICAN to ensure that employers and the employer’s basic business WORKERS BY COMBATING foreign workers are complying information through commercially FRAUD IN OUR MPLOYMENT- with requirements of the H-1B available data; nonimmigrant classification. USCIS BASED IMMIGRATION refers many cases of suspected H-1B-dependent employers (those PROGRAMS IS A PRIORITY fraud or abuse to U.S. Immigration who have a high ratio of H-1B workers FOR USCIS. and Customs Enforcement (ICE) for as compared to U.S. workers, as further investigation. defined by statute); and USCIS will continue random and Additionally, individuals can report Employers petitioning for H-1B unannounced visits nationwide. These allegations of employer fraud or workers who work off-site at another site visits are not meant to target abuse by submitting Form WH-4 to company or organization’s location. nonimmigrant employees for any kind the Department of Labor’s (DOL) Targeted site visits will allow USCIS of criminal or administrative action but Wage and Hour Division or by to focus resources where fraud and rather to identify employers who are completing ICE’s HSI Tip Form.

52 May 2017 INDIA GLOBAL BUSINESS INDIA-US

Indian investment flow rests on openness of US economy by Chandrajit Banerjee

The chief of one of India’s leading trade bodies, the Confederation of Indian Industry (CII), traces some of the lesser known facts behind India’s positive impact on the US economy in this ‘India Global Business’ exclusive.

ver the past two decades, the fastest growing source of Foreign collaborations with universities and bilateral partnership between Direct Investment (FDI) into the US research institutions, engaging with India and the United States economy, according to Select USA. charitable organisations and helping Ohad grown in leaps and bounds. Look- with disaster management and ing back at the trajectory of the rela- This investment covers a range of building local capacity. tionship, we have truly come a long sectors such as IT, Manufacturing, way – from the cloud of suspicion that Pharmaceuticals, Financial services, Among Indian companies in the US, hung after India conducted its nuclear Telecommunications etc. According IT companies today are some of the tests in the 1990s to the landmark to a CII survey conducted in 2015, most innovative and technologically US-India civil nuclear agreement in we found that 100 Indian companies advanced global players. 2006 – which helped spur sustained made tangible investments in excess engagements at the very highest of $15.3 billion in the United States, These companies are not only helping levels – till today and the establish- generating 91,000 jobs. Indian their US partners become more ment of an array of official dialogues companies are spread across all 50 efficient and globally competitive, but encompassing all aspects of our US states with tangible investments they are also engaged in meeting bilateral relationship. The US-India in 35 states. Some of the top states the various challenges within the US partnership is one that enjoys broad receiving Indian FDI are Texas, economy as responsible corporate bipartisan support in both countries Pennsylvania, Minnesota, New citizens. According to the US Bureau – largely because of the ‘balance of York & New Jersey. The highest of Labour Statistics, by 2020 there values’ that defines it, as well as our concentration of job creation is also will be more than 1 million computer strong people-to-people ties. seen in New Jersey, California, Texas, science related jobs in the United Illinois and New York. States and not enough qualified The India-US trade relationship has students to fill them. grown exponentially over the past These highly innovative and decade, crossing the $100-billion increasingly multinational companies The Indian IT industry understands mark. India is the US’ ninth largest from India are not only investing in the very critical importance of merchandise trading partner and the US economy and creating jobs enhancing the talent pool in its source of imports as in June 2015. across the wide sectoral spectrum, areas of operations and building a However, in the broader narrative but they are also positively impacting robust research and development on the US-India relationship, Indian the local communities in which environment to stay on top of the very industry’s foray into the US economy they operate through corporate vibrant tech industrial space – they remains a largely untold story. India social responsibility initiatives that are hence investing heavily in STEM has today emerged as the fourth include funding school programmes, [Science, Technology, Engineering INDIA-US SPECIAL EDITION and Mathematics] education in an economy and its people – the Published by effort to transform the education only ask is that any reforms to the system and prepare the American INDIAN COMPANIES ARE existing system be made in a manner youth for jobs in the fast-paced and SPREAD ACROSS ALL 50 that creates a level playing-fair field technologically advanced market US STATES WITH TANGIBLE without discrimination against a space. specific industry or business model. INVESTMENTS IN 35 As Indian companies continue For example, Wipro is collaborating STATES. SOME OF THE investing in the American economy with University of North Texas at TOP STATES RECEIVING and its people, such as real and Dallas (UNT Dallas) for the Wipro INDIAN FDI ARE TEXAS, tangible investments and job creation, India's Foremost Inbound Investment Magazine Science Education Fellowship PENNSYLVANIA, skill building programmes, tie-ups with programme in the US, which will MINNESOTA, NEW YORK & research institutions and so forth, the focus on training educators to build US remaining an open and credible ‘India Investment Journal’ (IIJ) is the ﬂagship inbound publication of India Inc. NEW JERSEY. leadership skills and teaching market economy would be critical to The magazine published every other month focuses on the world's excellence within STEM disciplines, spur future FDI from India. by leveraging research-validated engagement and contribution to India's transformation. expertise from UNT Dallas’ College of Education, and designing transformative and innovative EDITORIAL THEMES instructional experiences for DFW area’s K-12 schools that traditionally are under-funded. Inbound investments into India Strategic Imports Tata Consultancy Services (TCS), in collaboration with Discovery World’s perception of India and its Education, has recently launched “Ignite My Future in School”, a strategic role in India’s growth multi-million-dollar initiative to use India attracting investments from global computational thinking as a catalyst investors & corporate expansion to transform education in America. In-depth look at states and union It will engage 20,000 teachers and territories of India more than 1 million students over the next five years, offered free of cost Policies & key initiatives to them and their school districts, starting with 10 cities. “goIT” is TCS North America’s signature community engagement programme, where its KEY FEATURES employees, partners and educators teach computer programming, design thinking, robotics, app development, and mentor youth to increase STEM Online- Each cycle to education and career awareness. published promote one/two geopolitical partnership is important every other states In an effort to promote skill today in the global arena, whether Indian industry remains bullish on the month development, HCL Technologies in aligning our complementarities US-India economic partnership and launched the Technology Service to boost growth in sectors such as believes in continuing the momentum Corps (TSC) – a free IT workforce that was created in the last few years. manufacturing, defense, technology, Insights from Focused on key development programme designed This burgeoning relationship can only innovation or infrastructure in our key stakeholders sectors and to meet the needs of under-served, benefit our nations and our people in countries or maintaining global peace & advisors initiative low-income young adults and around the world. the long run, creating a sustainable unemployed veterans which further developmental environment that will helps them in obtaining jobs in the There has been some uncertainty uplift our business and society. technology industry. These are just looming over the legal and mobility some examples in the broad array aspects of high skilled workers with Sign up: www.indiainvestmentjournal.indiaincorporated.com of initiatives undertaken by Indian IT an impending overhaul of the H1-B Chandrajit Banerjee is Director- companies to enhance skill and talent & L1 visa regime and changes in building in the US. the immigration process in the US. General of the Confederation of Indian IT has always been and Indian Industry (CII). For business development and advertising opportunity email: [email protected]

The US-India economic and remains committed to the US market, Faceboo k “f” Logo CMYK / .ai Facebook “f” Logo CMYK / .ai @IndiaIncorp /indiaincorporated /company/india-inc www.indiaincorporated.com 54 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION Published by

India's Foremost Inbound Investment Magazine ‘India Investment Journal’ (IIJ) is the ﬂagship inbound publication of India Inc. The magazine published every other month focuses on the world's engagement and contribution to India's transformation.

EDITORIAL THEMES

Inbound investments into India Strategic Imports

World’s perception of India and its strategic role in India’s growth India attracting investments from global investors & corporate expansion In-depth look at states and union territories of India

Policies & key initiatives

KEY FEATURES

Online- Each cycle to published promote one/two every other states month

Insights from Focused on key key stakeholders sectors and & advisors initiative

For business development and advertising opportunity email: [email protected]

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INNOVATION IS IN THE GODREJ DNA Vivek Gambhir is Managing Director, Godrej Consumer Products Limited (GCPL), and the key architect of the firm’s 3x3 strategy to drive international expansion. He talks ‘India Global Business’ through the strategy and the consumer giant’s over-arching goals with a specific eye on emerging markets like Africa.

56 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION INTERVIEW ow would you describe products from the Godrej portfolio to woman to transform the way she GCPL’s Africa strategy and the African consumer. looks. It has tremendous affinity with how does it fit into the 3X3 salons and is the preferred brand Hplans? What are the kind of acquisitions for stylists across Africa. Darling you would highlight in the enjoys market leadership in most of Over the past few years, we have continent in recent times? the countries that it operates in and been scaling up our international dominates the landscape in East presence with acquisitions that fit well In 2006, we made our foray into Africa Africa, where it has been consistently in our “3 by 3” strategy – a presence with the acquisition of the Rapidol hair ranked a ‘Superbrand’. We in emerging markets in Asia, Africa care business. Today, Godrej South manufacture locally and our products and Latin America through three core Africa as it is called, is a leading are used by over 100 million African categories – hair care, home care hair care company. Our products consumers. and personal care. These strategic are available in over 16 countries in acquisitions have strongly aided our Africa. In fact, it would be rare to find To further consolidate our leadership growth story. Through them, we have a household in Africa, which has not position in South Africa, we acquired both extended our core businesses been touched by our brands. Frika, which enjoys a premium and implicitly broadened our presence positioning in the South African hair to a wider canvas. We have exciting and ambitious plans care industry, in 2015. Last year, we of being a dominant player in both acquired Canon Chemicals Limited, Establishing a strong foothold in the ethnic and Caucasian segments a Kenya based company, which Africa is a key part of our strategy, in Africa. Our flagship brand, Inecto’s manufactures and distributes products both in terms of business size today, permanent hair colour, is the market in the personal and home categories. as well as potential for the future. leader in ethnic hair care and has Africa contributes 31 per cent of been offering African women up to We also acquired, Strength of Nature

WE BELIEVE AFRICA AND INDIA HAVE A LOT IN COMMON IN TERMS OF CULTURE, ENTREPRENEURSHIP AND FRUGAL INNOVATION.

our revenues from international 100 per cent grey coverage for over LLC (SON), a leading company of businesses, with annualised revenues 60 years now. Our Inecto Superblack hair care products for women of of $200 million. We now have a guaranteed permanent hair colour, African descent. This acquisition growing business presence in South is the number one selling SKU in the helps scale up our presence in Africa Africa, Mozambique, Nigeria, Kenya, African ethnic hair industry. by being at the forefront of serving the Ghana, Uganda, Tanzania and Angola hair care needs of women of African in the hair extensions, hair cosmetics, We added Kinky, a leading brand in descent. SON complements our hair colours, household insecticides dry hair, to our portfolio in 2008. In portfolio in Africa by building on our and personal wash categories. 2010, we acquired Tura, a prominent leadership position in dry hair care beauty brand. and hair colours in the region. The We are making our largest investment acquisition also enables us to turbo- outside of India, in Africa. We are In 2011, we entered into a partnership charge creating a strong platform for convinced about the tremendous with Darling Group Holdings, a wet hair care products in Africa and potential that Africa offers; it has leading pan-African hair care forge a stronger presence in the $1.8 one of the fastest growing consumer company, and acquired a 51% stake billion global wet hair care category. markets in the world, with a in the business. Darling, which has young population. This provides operations in 14 countries across SON’s strong presence in the USA, tremendous opportunities for both Africa, is a market leader in hair with deep distribution and world-class driving penetration and increasing extension products; a category which manufacturing, additionally provides consumption across our core it has pioneered in the continent, with attractive opportunities for this growth. categories. Our hair care and hair a comprehensive presence across extension businesses are performing West, East and South Africa. Our Would you say Godrej is a popular well and we have learnt a lot about plan was to gradually acquire the name in the region? If so, what are what it takes to be successful in the remaining stake over the next the factors behind this popularity? region. We also believe that these five years. can, over time, provide a strong As a company, we follow a multi-local distribution and marketing platform for The Darling brand stands for beauty strategy. This means that we focus on taking other home and personal care and is an enabler for every African maximising the potential of all www.indiaincorporated.com May 2017 57 INTERVIEW SPECIAL EDITION our local brands in their respective accelerate our growth trajectory. adoption drives to spending time with geographies. In Africa, we parent the homeless. many strong brands like Inecto, What are some of your CSR Darling, Kinky, Frika and Valon. initiatives in Africa? What are your future plans and These will be very popular either which are some of the countries of across Africa or in the specific Giving back to the community has focus? markets that they serve. Darling, for always been very important to us. example, would be the largest brand Brighter Giving, our skill- based Africa is a key priority market for us pan- Africa in the hair category. volunteering program, provides and hair care is one of our core focus Godrejites with volunteering areas. So, in that sense, this fits in These brands have been invested in opportunities. well with our 3 by 3 approach - a and built over the last few decades presence in three business categories and enjoy strong equity with their In East Africa for example, our teams (personal care, hair care and home consumers. Godrej, for us, is much care) in three geographies (Asia, more of a corporate and employer Africa and Latin America). brand. It represents that parentage WE ARE MAKING OUR that supports and nurtures our LARGEST INVESTMENT Having said that, 3 by 3 is not a static businesses across the world. OUTSIDE OF INDIA, definition. It has been evolving over IN AFRICA. WE ARE time. For instance, air care was not a The Indian government has CONVINCED ABOUT THE big area for us 5-6 years ago. Now, it identified Africa as a thrust area contributes 6 per cent to our revenues for economic cooperation. What TREMENDOUS POTENTIAL and is an important part of our home support, if any, do you expect from THAT AFRICA OFFERS; IT care portfolio. Air care could be an the Indian government? HAS ONE OF THE FASTEST interesting category to explore, given GROWING CONSUMER that we have knowledge of building Through CII and the Exim Bank, the MARKETS IN THE the category in India and Indonesia. government has been very supportive WORLD, WITH A YOUNG Given our focus on serving the hair of investments and exports into care needs of women of African Africa, especially in the infrastructure POPULATION. descent, we are now adding a space. consumer overlay to our 3 by 3 approach. This is a very underserved A stronger focus on partnerships have empowered girls through market and provides significant within the government will create vocational training. Facilitated hair opportunities for us, globally. So, we tremendous equity for both India and dressing and beauty therapy training, are extending our focus from hair care Indian companies in Africa. This will along with entrepreneurship, soft for women in Africa to include hair go a long way in nurturing economic and life skills, enables these girls care for all women of African descent. cooperation between the two nations. to find sustainable employment In our household insecticides opportunities. Over 1,600 girls have business, Good knight is currently How receptive are African been trained since we started this sold in the aerosol format in Africa. governments to investments from programme in 2012. We plan to train We are evaluating more formats to Indian companies? 3,000 girls in the next two years. introduce in Nigeria and in other In South Africa, our team members countries. The African government has been volunteer time to teach volleyball, very receptive and encouraging cricket, soccer, table tennis, athletics What sets Godrej apart in of our investments in the country. and gardening. Robert Reilly, Exports international markets? Most governments particularly Manager at Godrej South Africa, now support investments that result in juggles travelling across Africa and Over the last couple of years, we have employment, manufacturing and coaching soccer to 30 young children. organised our international business technology transfer. operations into clusters - India & Similarly, in West Africa, Godrejites SAARC, Africa, Latin America & We believe Africa and India partner with local schools to teach Europe and Rest of Asia. The purpose have a lot in common in terms children and help schools improve of this restructuring was to drive more of culture, entrepreneurship and infrastructure. Many volunteer with the agility, provide greater focus and frugal innovation. There is also a local government on blood donation enable more cross-pollination, while meaningful Indian diaspora in many and tree plantation drives. sustaining the entrepreneurial spirit of parts of Africa. We haven’t faced our unique multi-local model. any challenges as a group from a During Godrej Global Volunteering regulatory or government stand-point. Day in December, 2016, over 250 Our operating model is quite Our experience has encouraged us Godrejites volunteered their time for unique. We follow an approach of to continue to invest in Africa and social activities ranging from school ‘cooperative federalism’, which is

58 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION INTERVIEW centred on values-based partnering higher order benefits, we feel that we Most MNCs are typically modelled and operational autonomy at the are well positioned to grow with the on selling the same brand across local level. Unlike traditional MNCs, desires of our consumers. Core to our different countries. They have global we have a multi-local model, premiumisation approach, is what we categories and tend to centralise where operational accountability call democratisation in our categories. management of these brands. and P&L ownership rests with the We want to be able to provide benefits country head. This helps sustain the and products hitherto not considered Our approach however, is not to entrepreneurial spirit that has made affordable by mass consumers. We copy and paste. We have strong local these companies successful, while believe that this makes our approach brands in our different geographies providing the benefits of quite distinctive – bringing great and our focus is on investing in and strong processes and scale that quality and delightful products to the making them much stronger. This, we Godrej brings. masses and convincing consumers to believe, is our competitive advantage. up-trade to these products. Our premiumisation approach is also We understand and can cater to local very calibrated. It is about offering Innovation is in our DNA as a consumer needs and preferences superior quality products at affordable company and since our innovation and create high quality, affordable prices. As middle-class incomes team is entirely in-house, we are agile products, tailored specifically for increase and as the mass population and prepared to launch a new variant African consumers. increasingly seeks products with within a week of picking-up a style.

www.indiaincorporated.com May 2017 59 EMERGING MARKETS SPECIAL EDITION

A renaissance of India-South Africa ties by Kingsley Makhubela

India is a crucial partner for South Africa’s economy which offers enormous trade and investment opportunities, writes an expert from the region.

outh Africa and India relations and investment opportunities for were reported to have operations are enjoying an unprecedented South African businesses. in South Africa. These were renaissance, founded on shared mainly engaged in mining, general Seconomic interests and longstanding The current challenging global manufacturing, information historical ties since the latter lifted economic climate, and the need for technology (IT) and financial services. economic sanctions against South BRICS countries to stimulate their Africa after the end of apartheid. economies, develop trade markets, Although fewer than 50 South African and grow job opportunities for their companies currently operate in Both countries are major players citizens, see South Africa, India India – Foreign Direct Investment in the global economy and share and other member countries having (FDI) to India from South Africa a common vision of shaping the a shared commitment towards is growing at an impressive pace. development agenda through deepening cooperation. South African companies such as multilateral engagements such as the Tiger Brands, the Airports Company Brazil, Russia, India, China, South With South Africa being India’s South Africa, Bidvest, Anheuser- Africa (BRICS) and the India, Brazil, largest export market in Africa Busch InBev (formerly known as South Africa (IBSA), and other accounting for over 22 per cent of SABMiller), FirstRand Bank, Standard related platforms. India’s merchandise exports, and Bank, Old Mutual, Balela Leisure, India emerging as the fourth largest Anglo American, Sasol, and Nando’s Growing trade relations between exporter to South Africa – bilateral Group Holdings have made great the two emerging economies trade between the two countries investments strides in the Indian have achieved thriving business which has grown by 380 per cent over market. partnerships, and as such South the past ten years is anticipated to Africa has identified India as a reach a target of $18bn by 2018. Premised on this, South Africa strategic partner due to the fact that recognises the magnitude of its economy presents enormous trade In 2015, over 100 Indian companies Indian investment to its economy,

60 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION EMERGING MARKETS and acknowledges that economic to strengthen multi-lateral trade and the African development agenda optimisation opportunities and economic relations and the which is underpinned by three critical increased government support potential for stronger investment elements, namely: market integration, initiatives should be strengthened as relations between South Africa and its industrial and infrastructure these are the key enablers that will BRICS partners. development. promote economic growth for both countries. Africa’s time has certainly come with the continent working towards To this end, platforms to enhance THE CURRENT holistic growth and development business relations between the two CHALLENGING GLOBAL through Agenda 2063 - the strategic countries have been established in ECONOMIC CLIMATE, framework to achieve continental recent years – with Indian business development goals which was organisations working with Business AND THE NEED FOR adopted in 2015. A fundamental Unity South Africa and the Black BRICS COUNTRIES component of this - is improved Business Chamber. These business TO STIMULATE THEIR regional integration. This will be platforms, alongside the respective ECONOMIES, DEVELOP driven by increased trade and countries’ governments, have TRADE MARKETS, investment between African states, developed initiatives to escalate AND GROW JOB through initiatives such as the India–South Africa relations. OPPORTUNITIES FOR Tripartite Free Trade Area and the Continental Free Trade. For example, the India-South Africa THEIR CITIZENS, SEE CEO Forum, originally led by Ratan SOUTH AFRICA, INDIA The South African government Tata (chairman of the Tata Group) and AND OTHER MEMBER has put in place initiatives to aid Patrice Motsepe (chairman of African COUNTRIES HAVING A the realisation of the objectives set Rainbow Minerals), was relaunched SHARED COMMITMENT by Agenda 2063. These include in 2010 after being largely inactive for TOWARDS DEEPENING measures to relax cross-border several years. Four sectoral working regulations and tax requirements. groups have since been established COOPERATION. Similar measures are in place for in the areas of energy, financial foreign companies wanting to invest services, mining and infrastructure. in African countries using South Moreover, South Africa’s Department Africa as their regional headquarter. In addition, the two emerging of Trade and Industry launched the economies partook in the South 8th Industrial Policy Action Plan Against this backdrop – it is evident Africa – India Business Forum in July (IPAP) in mid-2016, which aims that there is a growing consensus 2016. This forum served to identify to strengthen efforts that promote and a paradigm shift that sees trade and investment opportunities long term industrialisation and South Africa playing a centralised through closer strategic cooperation diversification beyond traditional role in solidifying Africa and India for socio-economic advances for commodities. relations in the global economy. Our the countries. fraternity in the continent transcends As a country, South Africa is guided geographical borders and we are In response to growing FDI in South on its growth and developmental confident that the spirit of partnership Africa – the government of South trajectory by the National for mutually beneficial relationships Africa has numerous measures Development Plan. This plan is with the international community to broaden, diversify and attract supported by, amongst others, the such as the one we share with additional investment, and these 9-point plan for reigniting economic India will inspire positive change for include the formation of the Special growth, which presents new focus sustainable socio-economic solutions Economic Zones in value-added sectors for private sector investments for our nations and the people manufacturing sectors which offers in areas such as the oceans economy we serve. unparalleled opportunities for foreign through Operation Phakisa, support investment from countries such for SMME’s, as well as building the as India. agriculture and agro – processing value chain systems. Dr Kingsley Makhubela [@ South Africa is definitely open for business, with its globally competitive South Africa is a key middle power, klmmakhubela] is the Chief expertise and products in a range and the only African country Executive Officer of Brand of value-adding sectors such as represented in various regional South Africa, set up in 2002 to renewable energy, infrastructure economic international groupings create a positive brand image development, agriculture, transport such as the G-20 and BRICS. The for the country. infrastructure, mining, defence, and country uses its membership at tourism. This presents opportunities such multilateral fora to champion www.indiaincorporated.com May 2017 61 IIJ EXCLUSIVE

INDIA IS THE MOST OPEN, LEAST PROTECTIONIST ECONOMY TODAY India’s Minister for Finance and Corporate Affairs, Arun Jaitley, just completed a packed tour of the UK during which Prime Minister Theresa May dropped in to a Downing Street meeting with his British counterpart, Chancellor Philip Hammond. ‘India Investment Journal’ caught up with the senior Indian Cabinet minister in London to explore his message for foreign investors, a possible free trade agreement (FTA) with post-Brexit Britain and the next phase of his dramatic reform agenda for the Indian economy. SPECIAL EDITION FACE TO FACE s post-Brexit UK a more, or concerned, conventionally we have It is a subject which is of keen interest less, attractive trading partner? had a very proactive position and to everybody and in my meetings I always stood for expansion as far as have tried to explain what our object IThere is a considerable amount that sector is concerned. There is a was. One of the principle objectives of interest in India, particularly considerable amount of concern in was to integrate the informal and after Brexit. Correspondingly my India, particularly in sectors like IT. We shadow economy which exists discussions in the past have also believe that trade helps in expanding outside the system into a more formal indicated that both investors and the economies. one and make India’s economy more government here [Britain] are looking compliant. for expanding opportunities of trade While there is a debate on across with India. the world, India remains one of the Therefore, a movement towards few countries which has opened digitisation of the economy is of In our discussions with the up significantly and the so-called significant help. Initial trends indicate government of Britain, what we have protectionist debate is least audible that it has been an important step understood is that they are keen in India today. Indians are dominating in that direction and investors in the to send a message that there will various economies of the world and UK have been keen and curious be no move towards any form of one of our major points of global to know about our experiences of protectionism. discussions today is about the demonetisation and the extent of movement of human resource. remonetisation that has taken place. As for expanding the nature of We have almost completed the economic relations between our demonetisation process and it two countries, that can take place WHILE THERE IS A has been the smoothest possible after Article 50 is invoked, Brexit replacement of currency anywhere in negotiations are complete and the UK DEBATE ON ACROSS the world. is legally entitled to enter into other THE WORLD, INDIA negotiations. REMAINS ONE OF Demonetisation was a move THE FEW COUNTRIES to change the Indian normal; a Any formal dialogue on an FTA [with WHICH HAS OPENED new normal had to be created. A the UK] is yet to begin. A formal UP SIGNIFICANTLY predominantly cash economy has dialogue can only commence once now to be substituted with a digital AND THE SO-CALLED the exit from the EU is complete and economy, which will bring more that will mean an Article 50 notice, PROTECTIONIST DEBATE money into the banking system and three years after that once formalities IS LEAST AUDIBLE IN lead to better revenue generation. of the exit are complete. INDIA TODAY. INDIANS ARE I see India becoming a less-cash DOMINATING VARIOUS economy as a result. Once we get into that negotiation ECONOMIES OF THE The post-demonetisation regime is process, it is obvious that every WORLD AND ONE OF country has its own set of priorities. actually going to generate a far bigger There is a time schedule before OUR MAJOR POINTS OF GDP in the long run. any action can commence but GLOBAL DISCUSSIONS notwithstanding that there is a very TODAY IS ABOUT THE Can investors feel confident about strong opinion in both countries to MOVEMENT OF HUMAN GST passing through smoothly? expand trade to the extent possible RESOURCE. and explore all possibilities. Despite teething problems, hopefully GST will come up for implementation This outreach [the UK visit] will by July 1. The entire process has to be help us in further strengthening the They [Britain] have to realise that completed by September 15. perception that globally is gaining when international students come GST is the biggest tax reform ground that in the midst of a global here [Britain] they subsidise the since Independence and once slowdown, India remains one of educational costs here. We already implemented, it will be a far more the bright spots as far as potential have a reality where the quantum efficient tax system. The quantum of destinations of investments are of students coming into the UK is taxation will go up and GST will make concerned. declining and other jurisdictions are generation of cash more difficult. available. The UK also is part of that Is the mobility of Indian competitive market. The first requirement is the professionals and students likely constitutional amendment, the law to impact any new trade deal with What is your message to foreign has been passed unanimously and the UK? investors on the aftershocks of by September 15th the curtain will be demonetisation on the Indian down. We have resolved most of the As far as the services sector is economy? critical issues; legislations have been www.indiaincorporated.com May 2017 63 FACE TO FACE SPECIAL EDITION drafted. potential for investors therefore to investment into the rural areas, ability invest in infrastructure, from a point to push up economic activity through Democracy does delay some of view of long-term investments, reduction of tax as far as the smaller decisions but at the end of day, a also exists. companies are concerned, the sense of responsibility does win. India has one of the largest implementation of GST by the middle Most decisions are being taken infrastructure building programmes of the year, more resources with the unanimously and we will hopefully hit anywhere in the world. banking sector and the ability of the the July 1 date. banks to lend more. All this will spur What is your forecast for private growth and therefore, hopefully, revive You plan to spend about $90 sector investments and growth for private sector investment. billion on building infrastructure in this year? 2017-18; what role do you envisage Where is the focus of the for foreign companies in these In the overall investment pattern government’s next phase of projects? in India, public investment has reforms?

Jaitley with UK Foreign Secretary Boris Johnson (left) and International Trade Minister Liam Fox

This year we have allocated the increased, FDI has increased, but The global economy continues to face largest amount for infrastructure out private sector investment has not its own challenges. Any slow growth of our resources. Over and above that increased significantly. in the world impacts us also; but 7-8 infrastructure also involves a public- One of the reasons for that is that the per cent growth rate is the new Indian private partnership, so the projects private sector during the boom period norm and if we get the support of executed in the PPP mode will had expanded significantly and today the global economy, that figure has a also have private sector investment with global demand a little low, they scope of shooting up. coming in. already have surplus capacity. There is a huge mind-set change in India with much greater support Additionally, infrastructure is one area Therefore, they have to first utilise that for reform activity. India is a very where long term lending also takes surplus capacity before they can think important story to tell because in the place. There are a large number of in terms of additional investments. midst of global uncertainties and the international funds etc which like relative slowing down of the global to invest and want a reasonable An uptake in private sector economy, India has been able to carry level of return over a long period investments will take place on the on its reform programme of time. I think because there is an back of infrastructure investment, fairly actively. infrastructure deficit in India, the good agriculture growth this year,

64 May 2017 INDIA GLOBAL BUSINESS The UK-India investment relationship is hugely important. India is now the third-largest investor and second-largest job creator in the UK; the UK is the largest G20 investor in India and plays an important role in building skills in the Indian workforce. And the UK government is committed to deepening this relationship further. In my first months as Secretary of State for International Trade, I’ve been lucky enough to visit India twice – most recently accompanying the Prime Minister [Theresa May] on her first bilateral visit outside Europe, as well as her first trade delegation.

In the words of Prime Minister Modi, India and the UK are an ‘unbeatable partnership’. And I’m very glad that our Prime Ministers recently committed to ‘building the closest possible commercial and economic relationship’.

Dr Liam Fox, UK Secretary of State of International Trade

Jaitley opens London Stock Exchange IIJ EXCLUSIVE SPECIAL EDITION In aid of a collaborative new relationship

Priti Patel took charge of the UK government’s Department for International Development (DfID) at a time when the country’s aid programme for India was evolving from the traditional hand-outs system to a more collaborative one. ‘India Investment Journal’ caught up with the minister as she completed six months in Britain’s Cabinet.

We don’t give traditional aid to up waters and rivers – all strengthen six months in office as minister in India but if we look at the facts and re-state our collaboration. It is an the Department for International – the UK is one of the largest opportunity to bring the expertise and Development (DfID) but has already “investors in India and India is one of experience that the UK has more to been on countless visits to war-torn the largest investors in Britain. India the forefront,” says the senior minister regions and has just returned from invests more in the UK than whole of in the Theresa May led Cabinet. Lebanon and Jordan, countries at the the European Union (EU) The Gujarati-origin minister, who heart of the Syrian refugee crisis. put together. has served as the Indian Diaspora Champion in the UK Cabinet She said: “It’s been pretty humbling, “That says a lot about the strength previously, also expressed her my first six months; particularly where of the private sector working excitement over the launch of the I have been and the state of the world relationship. We have many UK UK India Year of Culture 2017 in general. My focus has been on and Indian businesses working celebrations at Buckingham Palace in many of the humanitarian crises that collaboratively together,” says Patel, February. have concentrated all our minds, in when asked how the India-UK aid “Throughout the year, we are particular Syria. relationship is working in 2017. going to see great works of art, great collaborations, all the cultural “The UK has been at the forefront “Joint working on key initiatives in aspects coming together and a real of dealing with the crisis. We have areas like smart cities, the technical demonstration of how strong our committed 2.3 billion pounds assistance we are able to give, the cultural ties are. It is going to be really since the start of this conflict. It energy side to meet development exciting,” she said. The Conservative is our biggest ever response to objectives and urbanisation, cleaning Party MP has completed just over humanitarian crisis and makes us the

66 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION INDIA-UK/Special Report

Priti Patel during a recent tour of Lebanon second-largest bilateral humanitarian Patel had declared her goal as global interest, certainly in terms of donor. We have helped to get over ensuring that British aid delivers the supporting our place in the world.” 250,000 Syrian children into schools country’s global vision outside the However, it is no secret that her job and get them educated.” European Union (EU). She sees her hasn’t been easy as she holds firm job as making sure the international against a growing tide against the Asked about some of the negative aid system “does what it says on UK’s aid programme. rhetoric around refugees coming the tin” and delivers for the world’s out of countries like the US under poorest. “While I appreciate that some might President Donald Trump, she said: want to paint a particular point of view “The US are a huge supporter to the She explains: “The British public about aid, we should never lose sight refugee crisis, we should not lose should be proud and feel confident in of the fact that we have great values sight of that. They are the number one the way in which their development in the UK and the way we are there contributor in the region. on the frontline supporting countries and people that are vulnerable “We have to make sure that we THE BRITISH PUBLIC and poor and need our help and work together with the international SHOULD BE PROUD AND assistance. community, whether it is UN agencies FEEL CONFIDENT IN THE or other country donors. It is about WAY IN WHICH THEIR “But at the same time, I am not afraid how we work together to provide the DEVELOPMENT SYSTEM to challenge the aid system and the right support on the ground. international development system “I think the British public should AND AID IS SPENT. and that is exactly what I am doing – be incredibly proud of the fact that challenging this department, the way their generosity is saving lives and we spend money, re-prioritising how changing lives in difficult parts of system and aid is spent. I am not we spend funds in some quarters. the world, from north-east Nigeria, afraid to stop things that I think don’t Ethiopia, Somalia to South Sudan.” work in our national interest or may “I am also challenging the multi-lateral not fit with our strategic priorities in systems, large aid agencies, getting When she was appointed as the DfID Britain post-Brexit. them to cut back on their overheads, minister as Theresa May took charge deal with fraud.” of Downing Street in July 2016 just “I want to demonstrate that our aid is weeks after the Brexit referendum, working in our national interest and

Photo Credit:UK Department for International Development www.indiaincorporated.com May 2017 67 IIJ EXCLUSIVE

INDIAN-MADE JET ENGINES ALL SET TO TAKE FLIGHT Rolls-Royce started its relationship with India over 80 years ago with its engines powering the first civil and military aircraft in the country. Chris Cholerton, President – Defence Aerospace at one of the world’s leading manufacturers in the sector, tells ‘India Investment Journal’ how a focus on technology and capability transfer has contributed towards India’s sustainable growth. SPECIAL EDITION INTERVIEW ow is Rolls-Royce 60 years proves that we have the meet our customer requirements with supporting the India growth partnering capability, technology the right cost, quality and delivery of story? and the heritage to support the our products. H government’s Make in India initiative. Today, as an investor, a high skills We are proud to be a leading provider Do you have any plans of setting employer and a supplier of power of power to the Indian Armed Forces up a manufacturing centre in systems across aerospace, marine, and our commitment to support India India? nuclear and industrial, we are to achieve its goals of indigenisation Our engines have been manufactured developing a significant portfolio and self-reliance remains as strong in India since the start of our of activity in India to undertake as ever. partnership with HAL on the Orpheus progressively more complex in 1956. HAL now manufactures activity across the engineering, Overall, our long-term strategy in Adour engines that power Jaguar and manufacturing and supply chain India is based on leveraging India’s Hawk AJT aircraft with our support. domain. We believe in India’s inherent capabilities across engineering, Over our long-standing presence strengths and are well-positioned manufacturing, supply chain and in India, we have invested time and to support the government in its services activities and capturing resources to build best-in-class commitment to ‘Make in India’ and in indigenous market opportunities. supply chains, manufacturing and other socio-economic initiatives such excellent engineering capabilities as ‘Smart Cities’ ‘Skilling’ etc. Where does India fit into Rolls- which support the development of the Royce’s global value chain? Indian industries. This year, R-R’s theme at the Aero India show was “Co-creating the India fits as a supplier of products We already have component future together”. Can you elaborate and services, as a partner to support manufacturing capability in country on what this means? design and manufacture for our global with HAL, through our IAMPL Joint business, as a source of engineering Venture, which produces parts for our This theme recognises the deep talent and an important customer for aero engines and is an important part relationships we have developed our products and services for all our of our global supply chain. We have over many years, moving beyond businesses. For example, at Manyata also set up two engineering centres just ‘making in India’ and looking for Technology Park in Bengaluru, we are in India, one in Bengaluru where opportunities to truly co-creating, showing real commitment by already we carry out a range of aerospace co-designing and co-developing employing over 500 engineers on design and engineering work, and the the future together to support complex component and concept other in Pune to support our Marine India’s infrastructure and growth design work. Our Supply Chain and Power Systems business. requirements. Developing a truly team in India is involved in providing indigenous gas turbine capability is a inputs on capabilities to inform the In Marine, our dedicated spares long and difficult task for any country. component sourcing strategies, the warehouse and a ship repair unit in introduction of new suppliers and Mumbai provide technical support to In fact, India has great indigenous the development of special process over 270 vessels using our equipment capacity and capability to design, capabilities within the region. in India. Our Power Systems develop and manufacture a combat business, comprising of MTU and aircraft engine which can naturally be The journey started with HAL Bergen Engines, is active in the accelerated by technology transfer (Hindustan Aeronautics Limited) distributed power generation market and close collaboration with trusted forging division for the procurement of in the areas of product investment international partners, such as Ring Forgings, followed by partnering and partnership opportunities for Rolls-Royce. We will also explore with HAL in our IAMPL (International pursuing growth. The MRO workshop opportunities for co-creation for other Aerospace Manufacturing Private and Engine Test facility for MTU products, not limited to gas turbines. Limited) joint venture in 2012. The Engines in Pune is equipped to facility manufactures rings, shrouds provide special tooling and trained We believe we are uniquely placed to and cones for a wide range of aero manpower to overhaul all engine support India’s future requirements engines including the Trent family. types. as we are the only engine company Since then, India has evolved into a to have transferred a full capability key supplier of multiple commodities The skill, the talent and the motivated outside of our home market and centred upon core machining and workforce in India places it at the to have executed successful fabrication capability. heart of our global strategy and, international combat engine naturally, we are always on the programmes. Also, our roots and This journey will see us expand into lookout for opportunities to further partnerships are deep and long in other component types and we have expand our industrial footprint in this country. ambition to continue to grow the India. technical complexity and breadth of Our collaboration with HAL for over component manufacture, helping us India has been struggling for www.indiaincorporated.com May 2017 69 INTERVIEW SPECIAL EDITION

The skill, the talent and the motivated “ workforce in India places it at the heart of our global strategy. “

decades to make a viable jet From a team of two, we now have building and nurturing future talent engine to power its indigenous around 800 (and still growing) highly- pipeline. This demonstrates our fighter plane. Do you see any role skilled and talented people in India long-term commitment to strengthen for R-R in this? capable of driving business growth our distinguished legacy and play a and have ambitious plans to create major role in helping develop India’s Absolutely. India has made great a broader ecosystem that includes capabilities. strides already in this direction co-design, co-development and and there’s an excellent pool of co-manufacturing. With our partners What critical technologies do talented engineers and scientists. - QUEST and TCS - we develop high Indian Tier 2, Tier 3 suppliers have But a modern gas turbine engine quality engineering solutions and to master for the above? Can R-R’s is a hugely complex system and so services across the entire engine vendors help achieve this? developing indigenous capability product development cycle in India. Our growing engineering and supply is difficult and time consuming for Advancing capability in primary chain footprint will enable us to forming capabilities, including anyone. Leveraging the existing skills build an ecosystem that engages in more complex forging and casting and capabilities of trusted partners, co-creation across the entire value- processes will provide an advantage such as Rolls-Royce and the UK chain – from research, design and for India. This will allow greater government, will naturally help. development to manufacturing, vertical integration and a route for maintenance and repair. For India, it greater control of cost, logistics As I mentioned above, Rolls-Royce would provide further impetus to the efficiency and open up possibilities for is unique in that it is the only whole ‘Make in India’ initiative to strengthen future innovation. engine company to have successfully its R&D and access to advanced transferred a complete capability technologies and products. Advancing areas of current strength outside of our home markets and has in both machining and fabrication will worked on many international engine In addition, our partnerships with also be advantageous in exploiting collaborations. And our long heritage the Strategic Manufacturing Skills new opportunities in increasingly in the country and future global Council for defence sector, the complex commodity areas. Aerospace strategy, which places India at the Aerospace & Aviation Sector Skills demands the highest levels of heart of those ambitions, underlines Council, Karnataka Aerospace quality standard – development and that we have been and will remain Technology Centre and Rajiv Gandhi confidence in the application of these fully committed to a National Aviation University (RGNAU) standards within the second and third successful India. emphasises our commitment to tier of the Indian supply chain is an build future skills and competencies absolute requirement. This is a key How can R-R help India in setting required by the Indian aerospace enabler to future growth and an area up a domestic eco-system for industry. Through our STEM outreach where Rolls-Royce partnership design and manufacture of high of over 30,000 in 2016-17, we are can bring value. performance engines?

70 May 2017 INDIA GLOBAL BUSINESS A world leading IPO market £5.5bn 65 2016 saw a total of £5.5bn There were 65 IPOs raised through IPOs on the in 2016 Main Market and AIM 40 78% There are 40 Indian companies 78% of 2016 IPOs have ended quoted on the London markets the year above their IPO price with a combined market value of £158bn 42 17 Over £7bn raised by There are 17 Masala bonds 42 green bonds listed in London INDIA-UK/Analysis SPECIAL EDITION

Britain holds on to position as largest G20 investor into India Britain beat off tough competition from Japan to hold on to its position as the largest G20 investor and biggest job creator in India, a new report revealed.

etween 2000 and 2016, the UK availability of talented workers and the commercial links that Britain’s busi- invested $24.07 billion in India stable political system,” it notes. nesses – large and small, and from a and created 371,000 jobs, the whole host of sectors – have built in BConfederation of British Industry (CBI) The analysis, supported by Pricewa- India, and which the Prime Minister finds in its 2017 ‘Sterling Assets India’ terhouseCoopers (PwC) and UK India saw on her first visit outside the EU report. Japan by comparison invested Business Council (UKIBC), found that [in November 2016],” said Carolyn around $23.76 billion, followed by the Britain had increased its investment Fairbairn, CBI Director-General. US at $19.38 billion as the top G20 into India by $1.87 billion between “From strengthening the UK’s leading investors into India. 2015 and 2016, representing 8 per position as the largest G20 investor in cent of all foreign direct investment India to being the biggest Indian job “The top reasons British firms in- (FDI) into the country. creator through direct investment, it’s vest in India are the size and growth clear the country is a magnet potential of the market, the easy “These figures reflect the thriving

Equity FDI in India by G20 nations, Apr 2000-Sept 2016 (US$m)

Cumulative inﬂows (Apr 2000-Sept 2016)

Mauritius 101,760

Singapore 50,560

6 UK 24,072 6

8 Japan 23,760 % of total 33 inﬂows USA 19,380 8

Netherlands 18,929 16

Source: Department of Industrial Policy and Promotion

72 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION INDIA-UK/Analysis for British firms… Further reductions “India offers excellent opportunities efforts to improve the business in India’s corporate tax rates and for UK businesses looking to engage environment are clearly bearing improvements to the ease of doing in a fast-growing emerging economy. fruit, and British businesses of all business will see the relationship Building ever closer business ties sizes and from across sectors have between India and the UK go from with India will be critical, especially at continued to spread right across this strength to strength,” she said. this current time, given the changing exciting and fast-changing market. global and European stage,” he said. “As Prime Minister Modi said, the

Employment generated by foreign companies in India (Apr 2000-Sept 2016) Country Numbers (000) UK 280 Japan 276 Germany 107 France 62 US 226 Mauritius 1185

The chemicals sector receives the “It is encouraging to see that UK and India are an ‘unbeatable lion’s share of British investment confidence among British and Indian combination’.” in India at $6.1 billion (25 per cent business leaders has increased in Delhi proved the most popular of UK FDI), followed by drugs and comparison to last year. According to investment destination for British pharmaceuticals at $4.1 billion (17 PwC’s latest CEO Survey, 75 per cent firms in recent months. Between April per cent) and food processing at $3.2 of Indian CEOs are ‘very confident’ 2015 and September 2016, nearly billion (14 per cent). about their company’s prospects for a quarter (22.35 per cent) of British revenue growth over the next three investments chose Delhi. The state of The total number of people employed years, compared to 41 per cent Maharashtra, with the city of Mumbai, by British companies in India currently globally, adding to India’s attraction as attracted the largest share of British stands at 788,000, representing 5.3 a place to invest,” he added. investment ($7.47 billion) between per cent, or one in 20, of private 2000 and 2016. sector jobs. UKIBC chair Patricia Hewitt described the findings as a sign of the UK The ‘Sterling Assets India’ report Kevin Burrowes, executive board “solidifying” its place as the number marks the start of a series of events member and head of clients and one G20 investor and job creator in planned by the CBI and UKIBC on markets at PwC UK, said the findings India through FDI. the UK-India trade relationship to take offer a good base for India-UK ties to place in both the UK and India over build on in a post-Brexit era. She said: “The Indian government’s the next two years.

Sterling Assets India Calculations this year are a sum of three categories of UK funds inflow

Through firms of UK Through parentage, a majority Equity FDI that re-investment of which are the top 25 came from the from British investors from offshore UK directly firms already in financial centres like India Mauritius and Singapore.

This research estimates that UK companies re-invested $7.9bn between April 2000 and September 2016. It is estimated that one in every ten jobs created by FDI in India between April 2000 and September 2016 were created by UK FDI.

www.indiaincorporated.com May 2017 73

SPECIAL EDITION NEWS IN BRIEF

Indian firms Indian companies carried on their expansionist mode this year and here is a brief snapshot of the variety of on mission sectors covered. to expand

Hero plans South-east India plans to Zoomcar Asia solar unit Aurobindo Pharma overseas plans US factory ero Future Energies is ndia’s Aurobindo Pharma planning to set up a large plans to set up a factory in the grid-connected solar plant of US for injectable products. Hup to 100 MW capacity in South-east I Asia, the Hero Group firm’s founder India’s roughly $15 billion and MD Rahul Munjal has confirmed. pharmaceutical industry supplies about 30 per cent of The project is backed by $125-million the medicines sold in the US investment by the World Bank’s and relies on the country for International Finance Corporation the bulk of its export revenue. (IFC). However, the new Donald Trump administration has been pushing IFC, together with IFC Global for greater local production. engaluru-based, self-drive Infrastructure Fund, a private car rental start-up Zoomcar equity fund managed by IFC Asset is planning an overseas foray, Management Company, will invest Btargeting South Asian and African $125 million in equity that will nations, including Indonesia, Vietnam, enable the company to set up 1 GW Thailand, Philippines, Kenya, Senegal Greenfield solar and wind plants in and Cameroon. the next 12 months. According to Greg Moran, CEO and Mengistu Alemayehu, regional co-founder of Zoomcar India Pvt Ltd, director, IFC South Asia, said: “With the company is yet to finalise the this partnership with Hero Future “With the current landscape of expansion countries but that overseas Energies, IFC is helping accelerate what’s happening with the US growth was central to its agenda. the transition of the renewable energy White House administration, generation business to mainstream and some of the things that may The growth in these geographies as power sector. Through the Global change there, clearly, we don’t well as domestically in India will be Infrastructure Fund, IFC is also think having capacity in the US driven by its asset-light marketplace bringing in the support of international would be detrimental at this point,” model, which it has branded as ‘ZAP’. institutional investors. “Such a Aurobindo Pharma’s US chief, An asset-light model for Zoomcar will development will boost confidence Bob Cunard, told an earnings mean not owning a fleet of its own of other large business groups and briefing. but playing the role of an aggregator international investors to contribute which connects the owner of a car to to India’s ambitious renewable India’s fourth biggest drugmaker a prospective customer. energy targets and make a significant by sales, makes more than half difference in ramping up renewable- its revenue in the United States “We are looking to expand in India energy capacity in the country.” selling everything from HIV/AIDS and overseas. But we are not looking medicines to anti-bacterials to at any particular market as of yet,” Hero Future Energies has plans to schizophrenia drugs. It makes Moran told reporters on the sidelines expand its presence in Africa and tablets in New Jersey but much of of the launch of ZAP in Kolkata across India, according to Indian its US supply still comes from its recently. media reports. six factories in India.

www.indiaincorporated.com May 2017 75 BOOK REVIEW

NEW ROAD FOR INDIA-UK TIES by Arnab Mitra

‘Winning Partnership’ edited by Manoj Ladwa, takes a fresh 360 degree look at a 400-year-old relationship and comes up with several interesting suggestions for keeping it relevant in the 21st century. SPECIAL EDITION BOOK REVIEW hat can you say after have come a long way since their position of being wooed not only by everything has already destinies parted on August 15, 1947. London but also by May’s rivals in been said? Not much, Over the last seven decades, India Brussels, as well as individual EU Wright? Wrong. has gone from being the basket case members such as Germany and of the world to its fastest growing France. The UK, on the other hand, is With so much literature on UK’s major economy and the hottest looking for friends. relationship with the former jewel investment destination. in its crown, it takes a very intrepid It doesn’t need a genius to figure out intellectual to gather all his bravery The relative balance of power who holds the aces. to attempt to shed new light on the between the former colonial master subject. But Manoj Ladwa and his and the erstwhile jewel in its crown That’s what most of the authors team of heavyweight contributors – has also changed. As in 1612 AD, also say. like, diplomats Sir Michael Arthur and when Sir Thomas Roe, Ambassador Ranjan Mathai, strategic experts Lt of Queen Elizabeth I, presented his But this book is a lot more than Gen Syed Ata Hasnain and Rahul credentials to Emperor Jehangir and a commentary on the balance of Roy Chaudhary, political commentator sought his blessings to establish power between the UK and India. It Ashok Malik, London’s Mayor Sadiq trade relations with what was then the looks at varied facets of the storied, Khan, Commonwealth Enterprise richest empire in the world, the UK is sometimes bitter-sweet but always and Investment Council Chairman again looking for a win-win trade deal highly celebrated relationship such Lord Jonathan Marland, India expert with India to deal with the expected as the need to now join forces for the Dr Gareth Price, several members of Brexit shock. greatest common good of the world, the UK political establishment and the necessity of reimagining the top business experts, among other place, relevance and future of once equally notable names – wade into useful but nearing their sell-by-date LADWA’S TEAM OF the topic with a gusto and a freshness global bodies such as the United that make for a very stimulating read. STATESMEN, POLITICIANS, Nations and the Commonwealth DIPLOMATS, BUSINESSMEN, and the imperative of a shared The book is structured into easily POLITICAL COMMENTATORS security vision. comprehensible and logical sections AND STRATEGIC EXPERTS such as Foundations for the Future, OFFER THEIR VISION FOR It also explores the possibility Enhancing Strategic Collaboration, THE FUTURE AND, IN SOME of cooperation between the UK Unleashing the Great India-UK and India on deepening as well Partnership and Business Voices CASES, TENTATIVE STEPS as revamping the developmental that allows the flexibility to navigate TO GET THERE. paradigm across countries that forward or backward depending on need such assistance the most one’s areas of interest. and delves deep into the structures At this point, the British government of the soft power each country Everyone agrees that the time is ripe needs to demonstrate, in no uncertain exercises and raises flags on the for India and the UK to re-imagine terms, that it can find alternative lack of cooperation, despite ample their relationship and rewrite the rules markets and tie up trade deals that opportunities, between Indian of bilateral engagement. Ladwa’s compensate for the losses that will government organisations such as team of statesmen, politicians, accrue from its divorce with the Indian Centre for Cultural Relations diplomats, businessmen, political European Union. (ICCR) that have only recently commentators and strategic experts entered the arena of proactively using offer their vision for the future and, in This, most observers believe, is the India’s soft power as the thin end of some cases, tentative steps to minimum condition Theresa May has the country’s diplomatic wedge and get there. to fulfil to get a fair trade deal from the British Council and DfID that have Brussels. And that is why, to quote been in the game for decades. This book is being published in a Ladwa from the book, “this may year when the UK and India are be a good time for UK and India to Ladwa suggests very boldly that celebrating the cultural cross- announce that they are BFF (best India can assist other emerging and pollination that mark each of their friends forever, to use the lingo of developing countries by helping societies with a Year of Culture to today’s youth).” them roll out schemes like the Jan highlight the vibrant cultural histories Dhan Yojana, the financial inclusion and the bonding between two great Sure, India needs the UK for defence programme initiated by the Narendra civilisations on the 70th anniversary technology and access to global Modi government to provide every of Indian Independence. finance as much as the latter needs Indian family with a bank account, India’s market for its goods and which receives all government As several eminent writers point out in services. But in a stunning reversal of subsidies, doles and scholarships due ‘Winning Partnership’, both countries fortunes, New Delhi is in the happy to family members. This has reduced www.indiaincorporated.com May 2017 77 BOOK REVIEW SPECIAL EDITION corruption and improved lives across this small group of expatriates is at of goods like Scotch whisky, luxury the length and breadth of India. last getting the credit that has been cars and some value added services The Unique Identification Number due to them for decades. Ladwa, such as opening up the legal services called Aadhaar and the digitisation who hails from a family of such and retail sectors to FDI have caused of the economy are helping reduce immigrants, adds a personal touch heartburn in Westminster. corruption, leakages and wastage to this otherwise scholarly work by Amidst this, there is a perception that the bilateral relationship is drifting, with neither side able to firmly push it This may be a good time for UK and India to announce that they are BFF (best in the direction of a closer clinch. friends forever, to use the lingo of today’s youth). Ladwa and his team of commentators Manoj Ladwa, Founder & CEO, India Inc. suggest that this drift can be arrested and the perception in New Delhi that “Britain is interested only in Indian trade but not in its people” nipped in the bud only if both sides step in quickly to stem the rot.

And this can be done only by being sensitive to each other’s perspective – India must look at the anti- immigrant sentiment that drove the Brexit vote with empathy and the UK must be more receptive of India’s need to expand its services sector.

Trade, trade and more trade! The authors emphasise that commerce has to be the bedrock of the new, emerging UK-India friendship. It makes eminent sense. India has recently overtaken the UK as the world’s sixth largest economy but the book very rightly points out that India still has miles to go before it can get anywhere close to the levels of welfare the latter provides its people.

And this, the large list of business- further, enabling the government to recounting some personal anecdotes contributors point out by drawing on better target benefits at those who from his own fascinating life as a their own impressive experiences, need them most. British Indian, born and brought up in could be the driving force of the inner city Birmingham, engaging in a relationship going forward. “This initiative, in my opinion, could, in successful legal and business career, time, become India’s most influential to becoming a widely respected ‘Winning Partnership’ contains several export since the internationalisation communications strategist and one very interesting and mostly doable of the zero and help reform the power of Prime Minister Modi’s most trusted suggestions to take the UK-India dynamics and political economies not sounding boards. relationship to the next level. So, it only in Asia, Africa and South America will be of interest to politicians and but also in the developed nations of Despite the huge synergies, the practising diplomats as well as to Europe and North America,” Ladwa contributors are also mindful of business people, academics and says in his introduction. the areas of divergence that mark lay readers. the relationship. In recent times, The contribution and the still restrictions on visas for Indian untapped potential of the Indian professionals and students have Arnab Mitra is a senior diaspora in the UK is a theme that caused angst in the corridors of resonates through several chapters power in New Delhi. Likewise, the executive in a large European of the book. Dubbed a “living bridge” Indian government’s apparent energy company. by Prime Minister Narendra Modi, reluctance to ease barriers for exports

78 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION

www.indiaincorporated.com May 2017 79 HOTSPOT

SCOTLAND VIES FOR INDIAN INVESTMENTS

The northern part of the United Kingdom is making a strong case for Indian businesses to choose Scotland as a base for their UK expansion plans. SPECIAL EDITION HOTSPOT cotland’s people are famous for the warmth of their welcome. Home to just over five million Speople, it is estimated that for every person living in Scotland, another five people living across the world have Scottish ancestry. With such close and extensive connections to every corner of the world, it is no wonder that overseas visitors to Scotland are made to feel like they are returning home!

English is Scotland’s main language although Gaelic is actually the country’s native language. Spoken by only one per cent of the population today, you will still find road signs in Gaelic (as well as English) throughout the Highlands and Islands of Scotland. Failte is Gaelic for welcome.

Today, as throughout its history, Scots have made their impact felt on the world including in the fields of medicine, engineering and science, politics, history, the arts and sport. Scotland’s legacy of great innovators includes the inventor of the telephone,

Alexander Graham Bell, in the nineteenth century and John Logie Baird, an alumnus of Scotland’s universities, who invented the television. Today, our great innovators include Professor Higgs, who first posited the existence of the Higgs Boson particle whilst a professor at the University of Edinburgh.

Outside of academia, famous Scots can be found in sport, acting and music. Britain’s most successful Olympian, Sir Chris Hoy, the six-times gold medallist is a proud Scot as is tennis-player Andy Murray, currently ranked third in the world. Other famous Scots include actor Sean Connery, Ewan McGregor, James McAvoy (who studied at the Royal Conservatoire of Scotland), musicians Annie Lennox, Franz Ferdinand, Paulo Natini, Susan Boyle and violinist Nicola Benedetti.

There are seven cities in Scotland: the capital Edinburgh, Glasgow, Dundee, Stirling, Aberdeen, Inverness and Perth. The most densely populated area of Scotland is known www.indiaincorporated.com May 2017 81 HOTSPOT SPECIAL EDITION as the ‘central belt’ which runs west • Scotland enjoys a highly to east and includes the urban areas competitive taxation environment of Glasgow and Edinburgh. Outside SOME OF THE TOP that offers low levels of the central belt, the Highlands and INDIAN COMPANIES LIKE corporation tax – Scotland’s 20 Islands include 90 inhabited islands TCS, WIPRO, GENPACT, per cent corporation tax is a joint and the region is frequently placed in PIRAMAL, HINDUJA G20 low and there are R&D and the top five most desirable places to GLOBAL SERVICES new patent tax breaks as well. live in the UK. Inverness, Scotland’s most northerly city is reached within LIMITED ETC. HAVE A • Scotland boasts a successful three hour’s drive from Edinburgh PRESENCE IN SCOTLAND talent attraction scheme, or Glasgow. AND CONTINUE TO GROW TalentScotland, which aims to THEIR BUSINESSES bring skilled individuals TRADE & INVESTMENT SUCCESSFULLY. to Scotland. A long history of innovation and invention, easy connections, both • Scotland has 16 Enterprise physical and virtual, to global markets their current Scottish operations since Areas where investors in sectors and access to dynamic industry the Brexit vote – all of which are clear including life sciences, low clusters and connected supply chains votes of confidence in Scotland as carbon, renewables and general makes Scotland a strong bet for a investment location of choice now manufacturing can benefit international investors. and in the future. from financial incentives such as discounted business rates, According to the latest Ernst & Young Some of the top Indian companies business tax relief and enhanced Attractiveness Survey, Scotland like TCS, Wipro, Genpact, Piramal, capital allowances. secured 119 foreign direct investment Hinduja Global Services Limited etc. • Scotland’s cities are operating as a connected network, through Expanding our presence in Scotland with this strong government the Scottish Cities Alliance, partnership advances our strategy of strengthening both our onshore joining up Scottish Development delivery and digital solutions capabilities. “The Glasgow metro area has International’s approach to provided an exceptional talent base and favourable economic climate, potential investors looking at especially for our financial services business. Our planned expansion will different sites across Scotland. further leverage these benefits as we drive more digital-led transformation Scotland is home to a thriving, business impact for our clients.” globally connected network of successful companies in leading Mohit Thukral, industries such as oil & gas in Senior vice-president and business leader, Banking, Financial Services and Insurance, Genpact Aberdeen, renewables R&D projects in 2015. This amounted to a have a presence in Scotland and in Glasgow, life sciences in 51 per cent increase on the previous continue to grow their businesses Edinburgh and financial services year and compares with 20 per successfully. in Edinburgh/Glasgow. cent for the UK as a whole. Indeed, Every year for the last five years Scotland has overtaken the south- the number of expansion projects Supporting the trade & Investment east of England as a destination for by existing investors has increased mandate of the Scottish government foreign investment and only London (over 200 in total) – which shows is Scottish Enterprise and Scottish beats Scotland on this count now. that once here investors are enjoying Development International (SDI), the ongoing growth. Companies looking international economic development Over 3,900 investors have chosen to internationalise can take advantage arm of Scottish government. to make their home in Scotland. of a highly educated, skilled workforce Many including Dexcom (medtech), with a strong work ethic and get Scottish Development International Cezanne (Cloud HR), The Mortgage access to a wide range of business (SDI) has had a presence in India Lender (financial services), Televerde support through Scotland’s connected since 2000 and its existing office is (telemarketing and marketing public and private sectors. co-located within the British High solutions), Red Rock (investment), Commission premises in New Delhi, Farmflo (software), Asystec (big There are a few unique strengths the British Deputy High Commission data), having decided to invest and offered by Scotland that set it apart in Mumbai and the British Deputy build their European operations from other investment locations High Commission in Hyderabad. from Scotland recently. Existing around the world. investors GSK, Semefab, Howden SDI’s focus in India runs across; Compressors, Asensos, Stream It is up to 40 per cent more cost Water, Oil & Gas, technology and Technologies and Tokheim have also effective to locate in Scotland than in IT, Financial & Business Services, announced major new investment into other parts of the UK. Education, Food & Drink and Life

82 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION HOTSPOT

• The location of the project • Scottish Enterprise’s assessment Tata Consultancy Services (TCS) has been engaged in Scotland since the of how much is needed for the early ‘80s with several long standing customers. Scotland is an important project to go ahead market fot TCS and Scotland is our preferred location for investment and growth. Scotland offers global IT firms like TCS, a powerful combination of Regional Selective Assistance funding highly skilled talent, pro-growth regulation and a great environment in which to continues to help companies realise do business. Also, the consistent support from Scottish Enterprise and Scottish their ambitions while supporting Development International supports our growth agenda immensely. investment in Scotland’s economy and creates jobs for our people - in Gopalan Rajagopalan Head – Scotland Region & UK Public Sector TCS fact, Scotland now has fourth lowest economic inactivity in the whole EU Sciences sectors. account management, innovation and outperforms the rest of the UK and international specialist support both in terms of female and youth Companies can expect support from and possible reviews through Scottish employment, unemployment and Scottish Development International manufacturing Advisory Service for inactivity rates. (SDI) before, during and after they those companies manufacturing locate in Scotland with support in in Scotland. Many companies, including Indian identifying premises and investment companies have benefitted from opportunities and access to funding This package can include financial RSA grants. A recent example is for employment creation, R&D and support packages through Regional of the Global professional services training programmes. Selective Assistance, Research firm Genpact that plans to create and Development grants or training more than 300 new jobs in Glasgow Starting with personal interactions support. Regional Selective over the next five years, following with companies after gaining an Assistance (RSA) is a discretionary a decision to expand its European understanding of their ambitions grant available for businesses who operations in Scotland. and pain points, SDI teams in India want to develop a project in Scotland and Scotland work closely together and is open to any company that This investment has been supported to bring in the relevant expertise wants to locate and grow in Scotland. by a £3.1 million Regional Selective to ensure that the best package of Assistance grant from Scottish support can be offered. This includes The amount offered depends upon: Enterprise. ongoing support through dedicated • The size of business Source: Scottish Development International www.indiaincorporated.com May 2017 83 AN INDIAN IN EDINBURGH Currency Public Transportation Scotland uses the Edinburgh is the capital of Scotland known A regular 24-hour bus service UK’s Pound Tourist Info to Edinburgh Airport operated worldwide for its castles, gardens and hilly Sterling by Airlink100 terrain. It houses the devolved administration’s 1 GBP = 82.7 Scottish banks issue their own bank Very few restaurants political seat of power, Holyrood, with its INR* (*May 2017) notes but they have exactly the same include a service charge. Visitors can plan their journey within Edinburgh with Lothian medieval old town sitting at the heart of a more value as those issued by the Bank of Where a service charge is England and they are legal tender in all not included and where the Buses or with First Group for modern landscape. It has a considerable Indian parts of mainland UK. service has been good, it is those coming from further population, with many of the Indian festivals customary to leave a tip of a eld. Shops are usually open Monday- 10-15% of the bill. now part of the annual calendar. Saturday 09.00-17.30, with late night WiFi friendly trams run 14 km shopping on Thursday until 19.30 or No vaccinations are Consulate General of India, from York Place in the City 20.00. required for visiting Scotland Centre to Edinburgh Airport Edinburgh (United Kingdom) or any other part of the UK. Since April 2006, smoking is banned Wheel chair accessible, ramps Edinburgh National in all enclosed public spaces through- VAT is charged on all Mrs. Anju Ranjan and lifts are provided at the Castle Museum of out Scotland, including conference purchases in shops, hotels Consul General of India, Edinburgh stops along the route. Scotland Holyrood venues, shops, restaurants, pubs and and restaurants at a rate of Scottish Park & hotel bedrooms. 20%. Email: [email protected] Parliament Palace There are over 1,000 black Building cabs which can be hailed in the Address: 17 Rutland Square, street or picked up from one of Edinburgh EH1 2BB Accolades Top attractions the taxi ranks within the City Working hours: 0900 hours to 1730 Best UK City: Telegraph Travel Centre. The Royal Edinburgh Royal hours (Monday to Friday) Botanic Awards 2015 Mile The majority of taxis can carry Garden Telephone: 0131 229 2144 up to 5 passengers and are Edinburgh Airport Voted Best Edinburgh University accessible for wheelchairs Fax: 0131 229 2155 Airport, 5-10 Million Passengers Ranked 21st In The World Princes Royal Street Yacht Website: www.cgiedinburgh.gov.in Gardens Britannia Best Times to Visit Edinburgh Camera St Giles' Obscura Cathedral

Top 5 Business Hotels in Edinburgh To avoid spending a The best time to visit But this is also the small fortune, the Spring and early Edinburgh is June city's busiest time for winter months of Autumn are ideal The Chester Residence November to March Website: www.chester-residence.com through August, tourism, especially in with relatively mild offer the best Address: 9 Rothesay Place, Edinburgh, EH3 7SL when the average August when weather and thinner low-season deals, Email: [email protected] high temperatures festivals ll up the tourist crowds. except during the Telephone: +44 (0) 131 226 2075 Preston eld rise to a balmy 18 calendar. Website: www.preston eld.com degrees Celsius. city's famous New Address: Preston eld House, Priest eld Road, Year's celebration, The Raeburn Edinburgh, Scotland EH16 5UT Hogmanay. Website: www.theraeburn.com Email: reservations@preston eld.com Address: No 112 Raeburn Place, Stockbridge, Telephone: +44 (0)131 225 7800 Major ight operators to Edinburgh include Jet Edinburgh, EH4 1HG Airways, Etihad Airways, Qatar Airways, Air India, Email: [email protected] Virgin Atlantic, British Airways, Lufthansa, Emirates, Telephone: 0131 332 7000 Old Town Chambers KLM Royal Dutch, Air France, Turkish Airlines, Website: www.lateralcity.com/proper- Brussels Airlines. Edinburgh City Centre (York Place) ty/old-town-chambers Roxburgh's Court, 323 High Street, Website: www.premierinn.com Address: Going to Edinburgh Travellers can avail ights to Edinburgh from major Edinburgh, EH1 1LW Address: 44 York Place, Edinburgh, Scotland EH1 3HU Indian cities but there are no direct ights from India to +44 (0)131 510 5499 Telephone: 00871 527 9618 Telephone: Edinburgh. Sources: Various AN INDIAN IN EDINBURGH Currency Public Transportation Scotland uses the Edinburgh is the capital of Scotland known A regular 24-hour bus service UK’s Pound Tourist Info to Edinburgh Airport operated worldwide for its castles, gardens and hilly Sterling by Airlink100 terrain. It houses the devolved administration’s 1 GBP = 82.7 Scottish banks issue their own bank Very few restaurants political seat of power, Holyrood, with its INR* (*May 2017) notes but they have exactly the same include a service charge. Visitors can plan their journey within Edinburgh with Lothian medieval old town sitting at the heart of a more value as those issued by the Bank of Where a service charge is England and they are legal tender in all not included and where the Buses or with First Group for modern landscape. It has a considerable Indian parts of mainland UK. service has been good, it is those coming from further population, with many of the Indian festivals customary to leave a tip of a eld. Shops are usually open Monday- 10-15% of the bill. now part of the annual calendar. Saturday 09.00-17.30, with late night WiFi friendly trams run 14 km shopping on Thursday until 19.30 or No vaccinations are Consulate General of India, from York Place in the City 20.00. required for visiting Scotland Centre to Edinburgh Airport Edinburgh (United Kingdom) or any other part of the UK. Since April 2006, smoking is banned Wheel chair accessible, ramps Edinburgh National in all enclosed public spaces through- VAT is charged on all Mrs. Anju Ranjan and lifts are provided at the Castle Museum of out Scotland, including conference purchases in shops, hotels Consul General of India, Edinburgh stops along the route. Scotland Holyrood venues, shops, restaurants, pubs and and restaurants at a rate of Scottish Park & hotel bedrooms. 20%. Email: [email protected] Parliament Palace There are over 1,000 black Building cabs which can be hailed in the Address: 17 Rutland Square, street or picked up from one of Edinburgh EH1 2BB Accolades Top attractions the taxi ranks within the City Working hours: 0900 hours to 1730 Best UK City: Telegraph Travel Centre. The Royal Edinburgh Royal hours (Monday to Friday) Botanic Awards 2015 Mile The majority of taxis can carry Garden Telephone: 0131 229 2144 up to 5 passengers and are Edinburgh Airport Voted Best Edinburgh University accessible for wheelchairs Fax: 0131 229 2155 Airport, 5-10 Million Passengers Ranked 21st In The World Princes Royal Street Yacht Website: www.cgiedinburgh.gov.in Gardens Britannia Best Times to Visit Edinburgh Camera St Giles' Obscura Cathedral

Nicola Sturgeon is the outspoken First Minister of Scotland who has been campaigning for a voice for Scotland in the post-Brexit scenario. Her call for a second referendum on Scotland’s independence from the United Kingdom has raised the spectre of a new kind of exit – Scotland’s exit from the UK (Scexit).

icola Ferguson Sturgeon is 2012 and then Cabinet Secretary for the second such independence the first woman to become Infrastructure, Investment and Cities referendum since 2014 – when the leader of the Scottish Na- with responsibility for government country voted to remain a part of Ntional Party (SNP) and First Minister strategy and the constitution until the UK. of Scotland, a post created in 1999 November 2014. Throughout this when the Scottish Parliament was period she also served as Deputy She said: “I believe in the reconvened following a referendum in First Minister of Scotland. independence of nations – Scotland support of devolution from the UK included. But I believe just as strongly in 1997. She became SNP Leader in in the interdependence of nations November 2014 and was sworn in as – the need for countries to work Born in Irvine, North Ayrshire, in First Minister later that month. together to tackle challenges and 1970 and educated at Greenwood seize opportunities that few can Academy, she studied law at the In recent months, Sturgeon has do alone. University of Glasgow. Before been at the forefront of the Brexit entering the Scottish Parliament as debate – demanding a strong voice “That is why an independent Scotland a regional Member of the Scottish for Scotland, which voted to remain would always seek to work closely Parliament (MSP) for Glasgow in within the European Union (EU) in with others, across the British Isles 1999, she worked as a solicitor in the the June 2016 referendum in stark and beyond. Drumchapel Law and Money Advice contrast to the rest of the UK. Centre in Glasgow. “Brexit – especially the hard Brexit Therefore, being forced to exit the shaped by May’s inability to shake off She is currently MSP for Glasgow economic bloc against its people’s the agenda of the Ukip-tinged right Southside having been, before wishes has led to her seeking the wing of her own party – threatens boundary changes, MSP for Govan Scottish Parliament’s backing to to be an act of self-harm on a scale between 2007 and 2011. demand her own referendum on barely understood. In Scotland alone, Scotland’s views on remaining within In government, she served as Cabinet the United Kingdom. Brexit could cost the economy more Secretary for Health and Wellbeing than £11bn a year by 2030, and is between May 2007 and September If it gets the go-ahead, this will be predicted to lead to 80,000 job losses

86 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION PROFILE

over the next decade. Those effects in London to accept the Scottish have moved away from compromise can be multiplied significantly for the Parliament’s wishes. with language that has appeared to UK as a whole.” become harder and harder,” “However, if it chooses not to do so I said Sturgeon. Earlier in March, Sturgeon won the will return to the parliament following Scottish Parliament’s backing to hold the Easter recess to set out the steps She claims the economic benefits an independence referendum, 69 that the Scottish government will take of staying in the UK in a post-Brexit votes to 59. But British Prime Minister to progress the will of Parliament,” landscape are “significantly more Theresa May has already said she she warned. challenging” than they were last time will block such a referendum until the independence vote was held after the Brexit process is complete. Sturgeon’s motion calls for a in 2014. referendum between later next year May, who had met Sturgeon for and early 2019, but has indicated she Now that Britain has set itself on the talks in Glasgow just before formally would be willing to negotiate path of an exit from the 28-nation triggering Article 50 of the Lisbon the timing. economic bloc, the collision course Treaty on March 29 to set the with Scotland also seems to have two-year clock ticking on Brexit She is confident of winning an been drawn up. negotiations, has repeatedly insisted independence referendum this time that “now is not the time”, and that around because of the implications “As Britain leaves the European all efforts should be on securing the of Brexit for the country and to resist Union, and we forge a new role for best deal for the whole of the UK after being forcibly taken out of the EU ourselves in the world, the strength she formally triggers Article 50 on single market. and stability of our Union will become Wednesday. even more important,” said the British PM on her last visit to Scotland. “I hope the UK government will “I have been genuine and sincere respect the will of this Parliament. about trying to reach a compromise But the strength of the Union is If it does so, I will enter discussion agreement with the UK government. undoubtedly under considerable in good faith and with a willingness We have not met with a Government strain, with Sturgeon holding many of to compromise,” Sturgeon said, and a Prime Minister who is willing the cards in the game. warning the Westminster Parliament to meet us half way on that... they www.indiaincorporated.com May 2017 87

SPECIAL EDITION GLOBAL INDIAN

Being a Global Indian is part of my DNA Baroness Usha Prashar straddles the worlds of politics and arts with comfort and ease. ‘India Global Business’ explores what being a Global Indian means to her.

ow would you say the India- UK has the potential of making two development of policy in this area, so UK dynamic has evolved countries a formidable force for good. I was almost catapulted into over the years? public life. H What attracted you to public life India and UK have always had a in Britain? Through my work at the Runnymede special relationship but like any Trust I became very interested in relationship it has had its ups I came to Britain in 1964, at the age organisational change designed and downs. In recent years the of 15, as a student from Kenya. I had to promote equality of opportunity. relationship has matured. India has all the intentions of going back but the But I realised that to bring about become important economically and political situation in Kenya changed institutional and organisational the relationship is beginning and I stayed on. change I had to mainstream myself, to change. that is, not just work in an exclusive I became very interested in race race-related organisation but in a There is now much more reciprocity relations and immigration which in the mainstream organisation. In 1984, and a recognition that the relationship 1970s was a controversial issue. I was appointed as a Director of has to be based on equal footing. the National Council for Voluntary It is gaining a different dynamic. My first job was with the then Race Organisations. India @ 70 is more confident and its Relations Board, I then moved to be 70th anniversary is being marked the Director of the Runnymede Trust, I am a great believer in people by the UK India Year of Culture. It is an organisation which was set up organising themselves to bring about interesting that people are coming after Enoch Powell’s inflammatory change and voluntary activity really together to celebrate and ensure ‘Rivers of Blood’ speech against appeals to me, as Margaret Mead that there is better understanding, Commonwealth migration to the said: ‘Never doubt that a small group particularly among the young, UK. My time at Runnymede Trust of thoughtful committed citizens can about contemporary India and also coincided with significant public change the world; indeed it’s the contemporary Britain. policy developments in the fields of only thing that ever has’. After the race and immigration. Runnymede NCVO I went on to be Chairman for It feels very positive. A positive Trust was an influential body which the Parole Board, and in 2000 I was relationship between In-dia and the made significant contributions to the appoint-ed the First Civil Service www.indiaincorporated.com May 2017 89 GLOBAL INDIAN SPECIAL EDITION Commissioner, and in 2005 I became step change in establishing a new inaugural chairman of the Judicial dynamic partnership. It is about Appointments Commission and most laying the foundations for the next Not just a partner recently served as a member of the 70 years for a refreshed relationship Iraq Inquiry. between India and the UK and getting younger generations to understand of choice, but a I have always had passion for the contemporary India and Britain. arts, I enjoyed my time as a member of the Arts Council, and I Chaired I hope through these activities partner for life the Royal Commonwealth Society and connections, we will not and set up the National Literacy only celebrate the longstanding Trust. Such diverse experience has relationship between the two First and foremost, we at Accord guarantee that convinced me that it is important to countries but inspire people to there’s nothing generic about our passion and bring different experiences together to innovate and dedication to being a leading supplier of generic affect change; working in silos is not THE WORLD IS arouse curiosity. very effective. medicine in Europe. In fact, you’ll find that our scale BECOMING MUCH MORE The one highlight is a new digital of operation is one of the largest in the UK, and with INTERCONNECTED AND initiative, specifically aimed at four sites manufacturing, packaging and testing and How do you see Brexit having THERE IS GREATER engaging young people in both releasing our products plus increasing headcount, an impact on the immigrant NEED FOR US TO WORK countries, it is called ‘Mix the City’, an experience? TOGETHER TO BRING interactive digital platform which will it’s little wonder that we’ve become a key player in BETTER UNDERSTANDING showcase the diversity of sound and this field. And currently, with commercial activities The slogan ‘taking back control’ has BETWEEN COMMUNITIES music in four Indian cities, featuring in 35+ European countries, we hope you’ll agree led to anti-immigrant sentiment; it 12 Indian musicians and four UK that we aren’t just the partner of choice for now, has made people from minorities feel THROUGH CULTURAL curators. It basically celebrates a joint very insecure. This is a great shame; EXCHANGES. WITH THE love of music, arts and culture. but for always. I have been working in the field ADVENT OF DIGITAL, The other exciting project is the of race relations for over forty-five A GREAT DEAL OF Science Museum’s upcoming years and I have devoted most of my INNOVATION IS TAKING exhibition of history of Indian career to promote equality and fight PLACE WHICH IS VERY science. discrimination. This regression makes me very sad. EXCITING. INTERACTIONS What does being a Global Indian THROUGH ARTS AND mean to you? UK has a good record in CULTURE ARE NEEDED promoting equality and combatting MORE THAN EVER BEFORE. Being a global citizen, is part of discrimination, it is therefore deeply my DNA. Born in Kenya, of Indian regrettable that the debate around origin and having lived in the UK I Brexit was so negative with regard to regard myself as a global citizen. migrants. However, I remain hopeful, a much more interconnected and Being a global citizen is about being the minorities are resilient and I have there is greater need for us to work clear about one’s own identity and faith in this country’s sense of together to bring better understanding appreciating and understanding other fair play. between communities through cultures and having the ability to cultural exchanges. With the advent navigate one’s way through different What drew you to your British of digital, a great deal of innovation cultures with ease, and seeing the Council role? is taking place which is very exciting. world through the eyes of other Interactions through arts and culture cultures. I have been an admirer of the British are needed more than ever before. Council for many years. Before leaving Kenya to come to Britain, What are some of the highlights of the UK India Year of Culture for you? my first port of call was the British Baroness Usha Prashar is the Council Offices in Nairobi. It was The British Council has enormous part of my orientation for life in the experience of running Years of Deputy Chair of the British UK. So, I was delighted when I was Culture. Bilateral years of culture Council and an Independent approached to be its Deputy Chair. enable countries to focus on cultural member of the House The work which the British Council activity in its widest sense and of Lords. She has made does in intercultural relations is very strengthen cultural and people to significant contribution to effective. It is a force for good. It people connections. public policy and public life in operates in over 100 countries and the UK and India. has enormous influence in education UK/India Year of Culture is not a and the arts. The world is becoming one-year wonder, it the basis for a Date of preparation: March 2017 EU/CORP/010/03/17 90 May 2017 INDIA GLOBAL BUSINESS

145ACTA3621 CEO Advert.indd 6 28/03/2017 14:06 Not just a partner of choice, but a partner for life

First and foremost, we at Accord guarantee that there’s nothing generic about our passion and dedication to being a leading supplier of generic medicine in Europe. In fact, you’ll find that our scale of operation is one of the largest in the UK, and with four sites manufacturing, packaging and testing and releasing our products plus increasing headcount, it’s little wonder that we’ve become a key player in this field. And currently, with commercial activities in 35+ European countries, we hope you’ll agree that we aren’t just the partner of choice for now, but for always.

Date of preparation: March 2017 EU/CORP/010/03/17

145ACTA3621 CEO Advert.indd 6 28/03/2017 14:06 PRIVATE EQUITY HIGH FLIERS WITH A WEALTH OF EXPERIENCE

Private Equity investments, which provide much needed funds for the wider business of job creation, is an extremely specialist field. Here India Inc. profiles some of the very experienced Global Indian players in this field.

Gaurav Bhandari Managing Partner, Long Arc Capital

Base: New York

Education: BS in Computer Science, Columbia University

Past Companies: MD, Goldman Sachs & Co

Expertise: Media & Technology Sector

Achievements: Goldman Sachs in various capacities for more than 25 years Director in several companies – Media Rights Capital II L.P, Oberon Media, Tikona Digital Networks Private Limited, Franklin Holdings, among others. Extensive experience of investing in media & tech companies

Highlight: After over 25 years with Goldman Sachs, he left to set up his own successful fund.

Somit Varma Managing Director, Warburg Pincus

Base: New York

Education: MBA, Boston University, & Executive Development Program, Harvard Business School

Past Companies: Global Head of the Natural Resources Group and Chemicals Group at the International Finance Corporation (IFC)

Expertise: Energy Sector

Achievements: Managed $4 billion in equity and debt investments worldwide Focused on investing in emerging markets, including Latin America, Africa and Asia Director in several companies – Delonex Energy, Anemka Resources, Zenith Energy Management LLC, among others.

Highlight: His energy sector investment expertise goes back 18 years. Sonali De Rycker General Partner, Accel Partners

Base: London

Education: MBA, Harvard Business School

Past Companies: Atlas Venture, Venture Group at Deutsche Bank AG, Equity Capital Markets, Goldman Sachs

Expertise: Consumer, Software and Financial Services Sectors

Achievements: Worked for more than 14 years in the European venture business, especially investing in start-ups. Led investments in Avito (Naspers), Lyst, Spotify, Wallapop, KupiVIP, Calastone, Wonga, SilverRail, among others Director in several ﬁrms – Shift Technology SAS, Calastone Ltd, uSwitch Communications Ltd

Highlight: She co-founded the Business Development Group at Goldman Sachs.

Rajeev Misra Head – So bank Vision Fund, So Bank Group Corp

Base: London

Education: BS in Mechanical Engineering & MS in Computer Science, University of Pennsylvania, & MBS from MIT Sloan School of Management

Past Companies: Fortress Investments Group, UBS, Deutsche Bank, Merrill Lynch

Expertise: Strategic Finance Sector

Achievements: Heads a $100 billion tech fund, one of the few large funds globally. Helped build Deutsche Bank’s massive credit-derivatives business in the 2000s.

Highlight: He has a non-proﬁt outﬁt in India called Vahani, which helps fund under-privileged youth get higher education at global universities.

Vindi Banga Partner, Clayton Dubilier & Rice

Base: London

Education: BTech in Mechanical Engineering, Indian Institute of Technology - Delhi (IIT-Delhi), & MBS from Indian Institute of Management (IIM-A)

Past Companies: Unilever Expertise: Finance Sector

Achievements: On the Prime Minister of India’s Council of Trade & Industry between 2004 and 2014 Member of the Indo-UK CEO Forum. Recipient of the Padma Bhushan, one of India’s highest civilian honours.

Highlight: During his long stint with Unilever, he led the creation of ‘One Unilever’ agenda

FROM THE SCENE

Launch of UK India Year of Culture 2017 in London

INDIAN FEVER CATCHES ON IN BRITAIN From a silent film set to the tunes of the sitar at the Taj Mahal to a travelling exhibition celebrating Indian achievements in science, this year promises to take India-UK cultural collaboration to a whole new level.

Matt Hancock, UK Minister for Digital & Culture FROM THE SCENE SPECIAL EDITION he Taj Mahal will form the back- UK foreign secretary Boris Johnson. South Asian collection and films in drop of a rare screening of a India@UK2017, organised by the the BFI National Archive.” In addition, silent film set to live music by Indian High Commission, the Indian India@UK2017 will be supporting Tsitar maestro Anoushka Shankar as Ministry of Culture, and Indian several high-profile events being part of a wide range of celebrations to festival producer Teamwork Arts, held in the UK during the course of mark UK India Year of Culture 2017. in association with the UK’s Globe 2017, including the late Pandit Ravi Theatre, British Library, Young Vic, Shankar’s first opera ‘Sukanya’, the ‘Shiraz’ is a 1920s’ film made by Birmingham Rep, Barbican Centre, London Indian Film festival and Indian pioneer Himanshu Rai as a co- Sadler’s Wells, Tramway, Edinburgh Darbar Festival. Start up Fast growth Established Expansion production with the UK and Germany Festival Theatre, and the Royal Indian High Commissioner to the UK Succession Exit and tells the love story of Shah Jahan Festival Hall, will present five iconic Y.K. Sinha said: “The Year of Culture and Mumtaz Mahal. It is currently strands in the UK to showcase the assumes special significance in light being restored by the British Film cultural diversity of India through of the 70th Anniversary of India’s Institute (BFI) for its UK premiere in the year. independence. October followed by the screening at “These celebrations indeed offer our the iconic monument in Agra towards two countries a unique opportunity of the end of the year. “It spans the rural A SERIES OF renewing and revitalising the common to the majestic, providing much scope threads of our cultural heritage and to play with that scale. And, the Taj INSTITUTIONS IN to enhance our engagement at the Mahal is such an iconic and romantic BRITAIN AND INDIA WILL people to people level.” Besides the Kingston Smith: venue for a project like this,” said BE COLLABORATING BFI, some of the other UK institutions Shankar at the programme launch for THROUGHOUT THE YEAR involved in the celebrations include the year-long celebrations in London. TO PRESENT A HOST OF the British Museum, Science Museum SCREENINGS, TRAVELLING and British Library. It is backed by Partnering with Indian businesses the British Council and Arts Council The year 2017 had been declared EXHIBITIONS, LITERARY UK India Year of Culture during Prime England, which has invested to help them reach their potential Minister Narendra Modi’s visit to the FESTIVALS, MUSIC AND more than £2.5 million pounds in UK in November 2015. Its official DANCE PERFORMANCES, collaborations between artists in launch took place on Monday night AND SPORTING EVENTS. England and India. Over £1.8 million with a gala reception hosted by have been awarded from the lottery- Kingston Smith is a multi-disciplinary professional services firm that has been partnering with businesses to help them grow for over Queen Elizabeth II in Buckingham funded Reimagine India fund to help 90 years. We work with clients in India, the UK and beyond to understand their potential and ambitions, and provide all the information and Palace, which was lit up in peacock English artists and organisations support they need to achieve them. We have 60 partners and more than 500 professional staff focused in and around London, where our colours to mark the occasion. exchange ideas and develop commitment to the more entrepreneurial types of business has created long-lasting successes. These will include the Jaipur partnerships with their counterparts Our firm’s close relationship with India started over two decades ago, when we began advising one of India’s leading commercial enterprises Indian Finance minister Arun Literary Festival at British Library in in India. A range of grants schemes in doing business in the UK. Building on that success, our India Group today advises and assists a large number of Indian businesses on Jaitley, who represented the Indian London, a range of Indian events in collaboration with Creative Scotland their international operations, encompassing the delivery of compliance services and advising on international business structures, taxation government at the reception, was Edinburgh, an Independence Gala and Wales Art International will also issues and corporate finance matters. We serve a wide range of Indian businesses, working with brand new start ups to established blue chip all praise for the “heavy calendar” of at the Southbank Centre in London, generate opportunities for younger enterprises, across multiple sectors. events lined up for the year. and the UK premiere of the Freedom organisations and companies. “We have had an excellent Symphony by Dr L. Subramanium Our founder membership of Morison KSi offers our clients the strength and experience of 156 firms spread over 84 countries across the relationship with the UK and this will and the London Symphony Orchestra. Darren Henley, Chief Executive of globe to support their international reach. That combination of geographic knowledge, commercial expertise and client empathy has given us a great track record in helping Indian clients open and grow their businesses in the UK. help strengthen that for the future,” Matt Hancock MP, UK Minister of Arts Council England, said: “Our he said. State for Digital and Culture, said: support for UK-India 2017 will help “The UK and India have deep artists and arts organisations across A series of institutions in Britain bonds, born of a shared history, and the country develop partnerships in and India will be collaborating focussed on our close economic and India and attract new audiences in the Kingston Smith is proud to be a Find out more about how we can help you grow your business at throughout the year to present a host cultural ties now and in the future. UK. “The role that English artists from finalist at the UK India Awards 2017, www.ks.co.uk/india or contact: of screenings, travelling exhibitions, the South Asian diaspora are playing a testament to our commitment to literary festivals, music and dance “The diverse array of cultural events in many of the projects is a particular the UK-India corridor. performances, and sporting events. that will be held in both countries cause for celebration.” “Through the year of culture we will over the coming year will strengthen celebrate modern India and the long- these bonds and raise awareness The British Museum will stage a standing relationship between both about contemporary British and landmark exhibition – ‘India and the countries, rooted in our flourishing Indian culture, encouraging tourism World: A History in Nine Stories’ people-to-people links. I hope through and trade between our two great - showcasing some of the most Chandru Iyer, this series of cultural events we can nations. I am delighted to say that important objects and works of Head of International Business Development connect the next generation of Britons as part of this year of culture we will art from museums across India, in [email protected] and Indians and inspire people to also help increase access to historic dialogue with iconic pieces from the 020 7566 3682 play their part in shaping UK-India works in both countries, through the British Museum collection. relations over the next 70 years,” said digitisation of the British Library’s

96 May 2017 INDIA GLOBAL BUSINESS @KS_India_Group Kingston Smith www.ks.co.uk/india Start up Fast growth Established Expansion Succession Exit

Kingston Smith: Partnering with Indian businesses to help them reach their potential

Kingston Smith is a multi-disciplinary professional services firm that has been partnering with businesses to help them grow for over 90 years. We work with clients in India, the UK and beyond to understand their potential and ambitions, and provide all the information and support they need to achieve them. We have 60 partners and more than 500 professional staff focused in and around London, where our commitment to the more entrepreneurial types of business has created long-lasting successes.

Our firm’s close relationship with India started over two decades ago, when we began advising one of India’s leading commercial enterprises doing business in the UK. Building on that success, our India Group today advises and assists a large number of Indian businesses on their international operations, encompassing the delivery of compliance services and advising on international business structures, taxation issues and corporate finance matters. We serve a wide range of Indian businesses, working with brand new start ups to established blue chip enterprises, across multiple sectors.

Our founder membership of Morison KSi offers our clients the strength and experience of 156 firms spread over 84 countries across the globe to support their international reach. That combination of geographic knowledge, commercial expertise and client empathy has given us a great track record in helping Indian clients open and grow their businesses in the UK.

Kingston Smith is proud to be a Find out more about how we can help you grow your business at finalist at the UK India Awards 2017, www.ks.co.uk/india or contact: a testament to our commitment to the UK-India corridor.

Chandru Iyer, Head of International Business Development [email protected] 020 7566 3682

@KS_India_Group Kingston Smith www.ks.co.uk/india SPECIAL REPORT SPECIAL EDITION

Tips for a stress-free passage from India to the UK

The Europe chief of the world’s largest outsourcing and technology services specialist for diplomatic missions worldwide offers his insight into the India-UK travel landscape.

98 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION SPECIAL REPORT s we celebrate 2017 as the plan to visit European countries in an appointment to visit the Centre, UK-India Year of Culture the Schengen Area while on your or if you prefer a time of your choice alongside the 70th anniversary travels, you’ll need a separate visa for then ‘walk-in’ service is also available. Aof Indian independence, travel there too. The UK and Schengen Area Always check online in advance you between the UK and India is thriving visa offices are mostly located next have all the correct paperwork with like never before. Britain is the largest to each other, so if you are making a you before you make such a visit. G20 investor in India – with a total visit in person with your passport and inflow of $23.12 billion, while India paperwork, you can always apply for Visa at your doorstep invests more in the UK than it does in both types of visas. There is now a If you are travelling in a corporate the rest of the European Union (EU) ‘Keep my passport when applying’ group or delegation, you may find combined. There are over 100 flights service that allows you to apply for it more convenient to have an ‘on from India to Britain a week, with over a visa without leaving your passport demand’ service where staff will travel 30,000 seats capacity. Such powerful and worrying about whether you to your home, office, campus or hotel and deep links between the two will get it back in time to make an to accept the application and enrol countries make smooth, seamless application for another country. biometrics of you and your colleagues and simple travel essential. on a single day.

The UK has 16 visa centres in India, Go premium more than in any other country. As we PERSONALISATION If time is against you and you have to enter the peak seasonal travel time COMBINED WITH SPEED get a visa at short notice you can opt of year from April to September, what AND CONVENIENCE HAS for a Super priority or priority service, other tips are useful to know as a TRANSFORMED THE you can have travel documents traveller to the UK from India? OLD ‘ONE SIZE FITS ALL’ delivered to you – even direct to the EXPERIENCE OF APPLYING airport. We also offer a personalised Plan where you can form-filling assistance, and an SMS FOR A VISA. THE QUEUES, Pre-planning is always helpful. Around service to keep you updated on the a month before you plan to travel, THE DELAYS AND THE stage your application has reached so check what documents you will need INCONVENIENCE THAT that you don’t have to check and the process you need to start ONCE WERE PART OF THE up yourself. going through here. Although it is EXPERIENCE OF APPLYING much quicker in practice, we always FOR A VISA HAS BEEN Shop in advance advise people to start applying CONSIGNED TO THE PAST. There are VisitBritain kiosks at most three weeks before they travel - this visa centres in India, so while you way any unexpected hiccup in the are there they are useful for buying process can be spotted early enough Oyster cards in advance for London’s for travellers to take the necessary public transport, and booking remedial action to find or update accommodation and sightseeing trips any missing or out-of-date personal before you travel. This will save you paperwork. queuing up at Heathrow or Gatwick when you are tired after a long flight. Online is fine You can fill in a form online to apply Personalisation combined with for your visa, and pay for it online speed and convenience has too. Many people find this the most transformed the old ‘one size fits all’ convenient method. You will have to experience of applying for a visa. go to a visa centre in person to enrol The queues, the delays and the your biometrics, but check what is inconvenience that once were part involved in this online first. of the experience of applying for a visa has been consigned to the past. Lounge in comfort And as customer expectations and A Premium Lounge offers privacy The personal touch technology continue to leap ahead, so and comfort, with a range of premium You will need to go to an application expect the experience of applying for services that can make the whole centre in person to register your a visa to change with it. process stress free – from a chauffeur biometric details, which involves service to and from the Visa Centre, taking your photograph and a digital to assistance from staff in completing scan of your fingerprints. (If you the application form. have any henna on your fingertips, Anirudh Singh is Head – UK & you should remove it, or allow it to Europe, VFS Global. More than one visa? fade, as this may prevent us from If you’re travelling to the UK but also getting a clear scan). You can make www.indiaincorporated.com May 2017 99 YOGA CORNER SPECIAL EDITION Sedentary work life, pain killers and therapy by Keerti Mathur

Our expert explains why a sedentary office- bound lifestyle is like a ticking time bomb and how yoga therapy can help counter the effects on our joints.

tudies suggest we are all sitting their day. Such issues have been take to treating these conditions. for an average of 5.5 hours a described as ticking time bombs day. We then go home and waiting to explode. Activity is the key and as I’ve Ssit for a further 2.5-4 hours. The mentioned in previous articles, you development of Osteoarthritic (joint Modern medicine is turning towards need to ‘move it or lose it’. Hitting wear & tear) conditions are a direct a biopsychosocial approach, which the gym twice/thrice a week and result of such a lifestyle. embraces the idea that there are thrashing it out for 45 minutes biological, behavioural and social doesn’t help and can often hinder The management of such low to factors to people suffering from back the situation as you’re stressing medium grade conditions is through pain and that unless all aspects structures that are already brittle or medication such as Ibuprofen are treated, the results will not be delicate from lack of use. However, and Celebrex, which are NSAIDS comprehensive. Companies and regular practice of yoga provides (non-steroidal, anti-inflammatory) institutions are now tackling the movements to the body in a way that medicines and help to manage problem head-on by introducing encourages and promotes function. chronic and acute pain. But they employee wellbeing plans, which So rather than exercise a particular are also known to increase the encourage better nutrition and access muscular group in the body, yoga prevalence of major cardio vascular to care that will have a more holistic encourages an entire section of the incidence by as much as 37 per cent. approach. Yoga and meditation plays body to move and stretch in relation This could be in the form of a stroke a major role in this strategy. to the other structures it interacts with. or a heart attack. Eg. Organs in the abdominal cavity One National Health Service (NHS) being compressed and stretched These stats are largely linked to trust in the UK found that the health- within their confines, which enables people that are using the medicines related work absences across 7,000+ better circulation of nutrient carrying on a long-term basis to manage their employees were as follows: Anxiety, blood and drainage of the organs by- pain, which is common because of stress and depression related products. Through deep breathing in the gap in treatment between pain concerns resulted in 14 per cent of asana (yogic postures), lung tissue is killers, physical therapy and having the absences and back pain and manipulated altering transpulmonary surgery. These epidemiological musculoskeletal problems were at 12 pressure, enabling gaseous exchange concerns are only prevalent in per cent. These numbers and stats between the lungs and the outside industrialised populations where are alarming because of the route environment to happen more people sit for the best part of orthodox medical treatment would deliberately.

100 May 2017 INDIA GLOBAL BUSINESS SPECIAL EDITION YOGA CORNER

Practised on a regular basis, yoga Feel all 33 of your vertebra stacking spine and offset your shoulders. regulates and restores function one above the other forming a nice This isn’t a big problem but it can therefore promotes health and deep curve in the lower back and a compound over time and lead to wellbeing. In prescriptive terms, rounded curve around the shoulders. scoliosis and joint pain. yoga enables the individual to take This is the natural curve of the spine. responsibility for their own health. Sitting upright and in a relaxed Facilitating this is easily done by Now raise your chin up to face in front positon will help your blood employers, healthcare providers of you and maintain a level gaze with circulation, it will help your breathing and practitioners. your eyes. and it will improve your function. Remember you’re sitting in this Hopefully the concepts we’re talking Relax your shoulders and let your position for approximately five hours. about here are familiar to you; but are arms rest. You will need to shift and get up, you putting any of it into practice? move around every once in a while. Let’s focus on one single factor here. Relax your stomach and abdominal Set yourself an alarm that reminds Sitting! Are you sitting in a position area. you every 30 minutes or so to adjust and in a manner that will enable you your seat and re-establish your sitting to function physically, mentally and Relax your thighs and your feet. position. The more you do it, the emotionally to the best of your ability? less you’ll stray from that upright yet Notice the position and the posture of relaxed position. Let’s see… your body. Always remember. Adjust and re- Sit at your desk or place of work/rest, Check to see where you are in terms establish your position, physically, any place where you do most of your of the position of the things you mentally and socially. day to day sitting. need in front of you like your key pad, computer, TV monitor. Is the Rest your feet flat on the floor and key pad too high, too far, too low? If relax your toes. Ensure your legs are so, adjust your seat and re-establish Keerti Mathur is an associate uncrossed to begin with and later you your sitting positon. Is your monitor can adjust them to whatever you’re too low or too far; do you really need at the Gait and Posture comfortable with. to stop working from a laptop or get Centre at Harley Street a wireless keyboard and mouse? in London and has been Slouch your shoulders forwards and Adjust your seat and re-establish your practicing Osteopathy for 10 slouch your upper body including your positon. Are you sitting square on to years. He is part of the Art head and neck to the point where your working environment? Or are of Living faculty and a keen you’re almost tipping forwards. Now you at an angle and therefore twisting gripping or supporting yourself with your body? Adjust your seat and re- musician. Under the guidance the base of the seat or an armrest if establish your sitting position. of Art of Living Founder Sri Sri you have one, push yourself upright Ravi Shankar, Keerti worked without lifting your bottom off the seat. If you choose to sit with your legs to set up India’s first school of crossed at the ankles or at the Osteopathic medicine in Sri This will elongate your spine and thighs, be aware that will influence Sri University Orissa. stretch your torso up to the level of the position of your pelvis and may your shoulders. introduce lateral curvature in your www.indiaincorporated.com May 2017 101 LAST WORD SPECIAL EDITION Robust growth in external trade to drive GST success A US Federal Reserve report forecasts that the Goods and Services Tax (GST) has the potential to hike India’s GDP by nearly $100 billion.

he US Federal Reserve has confirmed what many people, including Prime Minister TNarendra Modi and Finance Minister Arun Jaitley, have been saying for a long time.

Countering nay-sayers, they have maintained that the Goods & Services Tax (GST), which will come into force from July 1 this year, will push India into a higher growth trajectory and improve India’s GDP growth rate to 8 per cent and beyond.

Now, an International Financial etching national boundaries in cast economic equation so far. Discussion Paper (IFDP) at the iron, this expansion in India’s global This will provide a tremendous boost US Federal Reserve (FED) has trade and investments will come on to the economy and take it past the calculated that the rollout of GST the back of stitching together India’s 8 per cent threshold – subject, of could increase India’s GDP by Rs 6.5 29 states and seven Union Territories, course, to the Monsoon god lakh crore ($100 billion) or 4.2 per which currently operate as discrete obliging the country with another cent. It did not mention the time frame trading zones, into one bountiful year. by which this will be achieved. The common market. additional output is almost double the If these ceteris paribus conditions government’s borrowing programme The FED estimate of GST’s growth are fulfilled – and there are reasons of Rs 3.48 lakh crore ($54 billion) for potential is higher than any other for optimism on this count – Modi the current financial year. study. The National Council for will have delivered on his promise of Applied Economic Research had ushering in achcche din (good times). The growth will be led by a surge in earlier calculated a 1-2 per cent manufacturing and is expected to improvement in GDP growth rates A caveat will be in order here: Modi’s lead to a 32 per cent improvement in over three to five years as a result party, BJP, and the coalition he external trade and 29 per cent rise in of GST. heads, NDA, still don’t have a majority internal trade. in the Rajya Sabha, the Upper House “We find that the GST is expected to of Indian Parliament. As a result, he This is significant as the growth in raise overall Indian welfare, and is still needs to carry the Opposition external trade is bound to lead to projected to be an inclusive policy in with him to get Bills passed. It has greater flows of outbound investments that it would be welfare improving for been calculated that the BJP-lead from India. This will not only increase all Indian states,” the IFDP said. NDA will get close to a majority in the India’s share of global trade, which Rajya Sabha only in 2019, when the is currently pegged at a little more As we have pointed out several next general elections will be due. than 2 per cent, but also facilitate times in the past, the falling barriers further integration of the country to internal trade, the resultant So, big ticket but politically into the global supply chain – a key lowering of corruption and increase in contentious legislative reforms prerequisite for shared regional and efficiency and logistics will drive this such as an easier land acquisition global prosperity. uptick in economic performance. This law to replace the one brought in improvement in manufacturing and by the previous Congress-led UPA And ironically, at a time when external as well as internal trade can government in 2013 will have to wait some countries are pulling up the lead to a spurt in jobs – the missing for the new government that will take drawbridges on foreign investments part of the otherwise buoyant Indian office in May 2019.

102 May 2017 INDIA GLOBAL BUSINESS Organisers

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Fast forward thinking.

In an industry that’s accelerating at an ever-increasing pace, here at Rolls-Royce we’re always one step ahead in the development of power systems on land,in the air and at sea.

Building on a partnership of over 80 years, we continue to contribute to India’s substantial growth through best-in-class supply chains, excellent engineering capability and effective manufacturing infrastructure.

Our belief in India’s engineering and innovation capabilities, coupled with our commitment towards the government’s ‘Make in India’ initiative to develop India’s aerospace and infrastructure sectors, helps us shape the future together. And finally, to co-design, co-develop and co-manufacture with our highly skilled strategic partners, is as much an honour, as it is a great opportunity.

So here’s to a fantastic future at an ever-increasing pace.

RRC_India_Fast Forward_203wx266h_vFNL_2.indd 1 02/05/2017 19:25