India@FDI Magazine

The Ease Of Doing Business

Message
INDIA:
Engine of
Global
Growth
I
am happy that Mediascope Publicitas is
bringing out this ‘Special Publication’ on
the occasion of the Annual Investment
Meeting 2017 in Dubai, highlighting the
various investment opportunities in India. It is
an important event where the international
investment community, corporate leaders,
policy makers, experts, and practitioners from
around the world meet and discuss strategies
to connect business and countries and I am
confident, this publication will guide them to
potential partners in India.
As the global economy continues to face
headwinds, the economic data emerging from
India are very encouraging. India is the fastest
growing large economy in the world and
is emerging as an important engine of
global growth.
India’s strong economic
fundamentals, vast domestic
market, low wage costs and
skilled labour continue to
attract record levels of FDI.
The Government of India’s
proactive approach to growth
and development and its
emphasis on innovation and
entrepreneurship is also having
a very positive impact on the
perception of investors. We have
the world’s largest ‘financial inclusion
H.E. Navdeep Suri
Ambassador of India
to the UAE
‘India is the
fastest growing
large economy
in the world
and is emerging
as an important
engine of global
growth’
programme’ in Jan Dhan Yojna and the
country is moving rapidly towards a cashless
and digital economy. These trends will
receive a further boost with the imminent
introduction of GST to create an integrated
market across the nation.
It is important to note that India is one
of the more open and integrated economies
in these times when we witness elements
of protectionism in some of the most
developed economies of the world. The
flagship government programmes such as
Digital India, Make In India, Start-up India,
Swacch Bharat (Clean India), Smart Cities
and Namami Gange (Clean Ganga) are
game changers and open significant new
opportunities for potential investors
at this conference. Stability and
economic reforms make us one of
the most attractive investment
destinations and I invite you
to Make in India – for India’s
$2.3 trillion domestic market
and for global markets. To
quote our Prime Minister
Mr Narendra Modi: “India is
not only a good destination.
It’s always a good decision to be
in India.”
My best wishes for the Annual
Investment Meet 2017.

The Ease Of Doing Business

Communiqué
MEDIASCOPE PUBLICITAS
CEO
ED
CFO
COO
Dir. Content
EDITORIAL
Editor
- Marzban Patel
- Anita Patel
- Sunando Roy
- Namita Sahu
- Indu Joshi
- Nithin Belle
ART
Creative Director - Muhammad Jaan Faruqui
Graphic Designer - Shivaji B. Gaikwad
Image Editor - Mrunali Gujarathi
Production Manager - Elidio Fernandes
PROJECTS
Manager
- Merzi Daruwalla
ADVERTISING & SALES
srinivas.iyer@publicitas.com
sharmila.devnani@publicitas.com
manish.juyal@publicitas.com
mallika.srinivasan@publicitas.com
The editorial content published in this magazine are
the viewpoints expressed by the various authors.
This magazine is printed and produced by
Mediascope Publicitas (India) Pvt. Ltd. Opinions
herein are the writer’s and do not necessarily
reflect the opinions of Mediascope Publicitas.
Editorial enquiries concerning the reproduction
of articles, advertising and circulation should be
addressed to: INDIA@FDI,
Mediascope Publicitas (India) Pvt. Ltd,
51, Doli Chamber, Arthur Bunder Road,
Colaba, Mumbai 400 005, India.
Email: srinivas.iyer@publicitas.com
M: +91 9820132670
Material in this publication may not be
reproduced, whether in part or in whole,
without the consent of the publisher.
INDIA@FDI is Printed at Zabeel Printing Press,
P. O. Box: 5143, Dubai (UAE).
When international investors look around the globe seeking
investment opportunities, they focus on specific issues in a
country: political stability, sensible economic policies, market size,
demography and continuing reforms by the government in office.
Interestingly, a growing number of global investors are finding these very features
ideally incorporated in India: one of the most vibrant, and huge, countries with
vast potential for growth, and importantly, one of the youngest in terms of the age
profile of its population.
The National Democratic Alliance (NDA) government headed by Prime Minister
Narendra Modi is today one of the most stable regimes in the world, with comfortable
majorities in the federal and state polities. The government is also spearheading
a dramatic movement to transform the economy – both urban and rural – by
introducing a raft of reforms. Mr Modi has since coming to power in 2014 launched
a series of innovative programmes that aim to attract billions of dollars in foreign
direct investment (FDI). Make in India is the flagship programme, heading the list of
the various initiatives, and is estimated to have generated investments worth nearly
$100 billion so far.
The programme has been described by the government as “a powerful,
galvanising call to action to India’s citizens and business leaders, and an invitation
to potential partners and investors around the world.” It represents a comprehensive
and unprecedented overhaul of outdated processes and policies and a complete
change of the government’s mindset. The government will not be seen as “a permitissuing
authority, but as a true business partner,” in keeping with Prime Minister’s
tenet of ‘Minimum Government, Maximum Governance’.
In the inaugural issue of India@FDI, which will regularly focus on the
opportunities that the country offers international investors, we are highlighting
the landmark efforts of the government to attract foreign investments. It also
focuses on the growth potential in the India-UAE trade and investment segments,
especially on the occasion of the start of the three-day Annual Investment Meeting
in Dubai from April 2 to 4.
Nithin Belle
— Editor
1

Contents
Cover Features
08
Make In India
12
Invest India
16
Smart Manufacturing
2

04
Annual Investment
Meeting
06
Ambassador of
the UAE to India
18
Dubai Chamber of
Commerce & Industry
22
L&T: Indian Business
Major in the Gulf
24
Indian investments
in the UAE
26
Dubai International
Financial Centre
32
DP
World
38
Delhi-Mumbai
Industrial Corridor
42
Gujarat International
Finance Tec-City
46
FDI in
Tourism
50
Andhra Pradesh:
Southern Charm
54
Madhya Pradesh:
The Heart of India
3

Annual Investment Meeting
The seventh edition of the Annual Investment
Meeting being held at the Dubai World Trade Centre
between April 2 and 4, will see participation from
political and business leaders from around the globe
The Annual Investment Meeting, being held under the
patronage of His Highness Sheikh Mohammed bin
Rashid Al Maktoum, the UAE Vice-President, Prime
Minister and Ruler of Dubai, will be held between
April 2 and 4 at the Dubai World Trade Centre.
It is an initiative of the UAE Ministry of Economy and is
the region’s first emerging markets, FDI-focussed event to
offer a perfect blend of trade fair and intellectual features.
The premier event focuses on FDI in
growing markets and is the leading global
platform aimed at facilitating strategic
networking and promoting investments,
while providing a rich learning experience.
The theme this year is: ‘International
Investment, Path to Competitiveness &
Development.’ Participants will discuss how
to attract the right kind of international
investment that will contribute to the
competitiveness of national economies.
The highlights include the investment
conference and a prestigious exhibition.
AIM Exhibition 2017 will feature
different industry projects and services
catering for the investment growth of
various regions. In 2016, AIM attracted 432
exhibitors from 137 countries including
India, China and Russia.
This year, exhibitors will include the
Dubai has been
Global Financial
Andhra Pradesh Economic Development Board and the
Madhya Pradesh Trade & Investment Facilitation Corporation
Ltd.
Pre-conference workshops will be held on April 1 by the
World Association of Investment Promotion Agencies (WAIPA)
and Wavteq Ltd.
WAIPA, which was established in 1995 and has 170
members from 130 countries, provides the opportunity for
investment promotion agencies to network
and exchange best practices in investment
promotion.
“It is of great pride to collaborate
with the World Association of Investment
Promotion Agencies in the organisation
of AIM,” said Dawood Al Shezawi, head of
organising committee, AIM. “Dubai has been
ranked first regionally and 16th globally in
the 2015 Global Financial Centres Index.
The United Arab Emirates as the host of the
Expo 2020 is attracting more attention and
investments from around the world.”
The much-awaited and mega
investment meeting in Dubai promises
to bring financiers, fund-seekers,
entrepreneurs and industrialists and
government leaders on a common platform
to enable them to cooperate for the rapid
expansion of economies.
4

His Highness Sheikh Mohammed
bin Rashid Al Maktoum
UAE Vice-President, Prime Minister and Ruler of Dubai
5

Message
| Ambassador of the UAE to India |
International
Investment,
Path to
Competitiveness
& Development
H.E. Dr Ahmed A.R. Al Banna
Ambassador of the UAE to India
The Annual Investment Meeting
is a premier event focusing
on foreign direct investment
(FDI) in emerging markets. In
its seventh year, it is an initiative of the
UAE Ministry of Economy, held under
the patronage of His Highness Sheikh
Mohammed Bin Rashid Al Maktoum,
UAE Vice President, Prime Minister and
Ruler of Dubai.
The next edition of the Annual
Investment Meeting will be held on
April 2-4, 2017 at the Dubai World
Trade Centre. The theme for this year
is ‘International Investment, Path to
Competitiveness & Development,’
which will deliberate on how to attract
the right kind of foreign investment
that contributes positively to the
competitiveness of national economies
and inclusive growth.
Since its inception in 2011, AIM
has witnessed significant Indian
participation. In the last edition, Mr
Dharmendra Pradhan, the Indian
Minister of State (I/C) for Petroleum and
Natural Gas led a 25-member delegation
from sectors like infrastructure,
agriculture and food processing and
information technology.
Apart from this, the event also
featured a “Make in India” pavilion. Mr
Kalraj Mishra, Indian Minister for Micro,
Small and Medium Enterprises also
participated in the 2nd Economic and
Business Conference of the Indian Ocean
6

Rim Association, held on the sidelines of
AIM 2016.
This year too, we are expecting strong
participation; Andhra Pradesh and
Madhya Pradesh shall be representing
India, led by senior government officials
and members of the business fraternity.
The UAE recognises India as one of
its most important strategic partners. In
recent years, the traditionally close and
friendly India - UAE bilateral relationship
has evolved into a significant
partnership, especially in the economic
and commercial sphere.
The visit of Hon’ble Prime Minister of
India Mr Narendra Modi to the UAE in
2015 and two consecutive visits of His
Highness Sheikh Mohammed bin Zayed
Al Nahyan, Abu Dhabi Crown Prince and
Deputy Supreme Commander of the
UAE Armed Forces, to India, in less than
a years’ time, have given a new impetus
and re-energised our partnership that
has been growing steadily over the years.
Our nations have intensified bilateral
investments to ensure mutual progress.
The UAE’s investment inflows to India
grew by USD 1 billion in FY 2015-16,
maintaining our status as the largest
Arab investor to the country. We
currently account for around 85 per
cent of total Arab investments to India,
with our cumulative investments valued
around USD 10 billion.
Presently, there are more than
4,365 Indian trading companies, 200
commercial agencies and over 5,000
Indian trademarks registered with the
UAE Ministry that contribute immensely
to our economic development. The
UAE is home to more than 2.6 million
Indians, constituting the largest Indian
expatriate community abroad. They
continue to play major roles in uplifting
our economy and energising our trade
and commerce relationship.
Finally, I take this opportunity to
convey my best wishes to ‘Mediascope
Publicitas India’ for their sincere
endeavours and wish them all the
success.
7

Make In India
One of the most significant initiatives of the
Indian government, headed by Prime Minister
Narendra Modi (who got elected to the top
post in 2014) was the launch of the ‘Make in
India’ initiative.
For several years policy-makers in India debated on how to
give impetus to manufacturing in the country to ensure that
it emerges as a global manufacturing hub. Unfortunately, the
manufacturing sector has been a laggard, with growth rates
stagnating or even declining.
Mr Modi launched his ambitious ‘Make in India’ campaign
to facilitate investment, foster innovation, enhance
skill development, protect intellectual property and build
best-in-class manufacturing infrastructure within months of
coming to power.
The initiative is based on four pillars, which aim to boost
entrepreneurship in manufacturing and other sectors. The
four pillars include: new processes, new infrastructure, new
sectors and new mindset.
The Make in India programme has been built
on layers of collaborative effort. An action plan has
been drawn up for the next three years, following
meetings between government officials and business
representatives, aimed at raising the contribution of the
manufacturing sector to 25 per cent of the GDP in the
coming years.
Ambitious campaign
to facilitate
investment, foster
innovation
Prime Minister
Narendra Modi’s
flagship programme,
Make in India,
promises to transform
the Indian industrial
and services
landscape
8

Single largest manufacturing initiative
These exercises resulted in the creation of a road map for the
single largest manufacturing initiative undertaken by a nation
in recent history. They also demonstrated the transformational
power of public-private partnership, and have become a
hallmark of the Make in India programme.
Obsolete and obstructive frameworks of the past have
been dismantled and replaced with a transparent and userfriendly
system that is helping drive investment, foster
innovation, develop skills, protect intellectual property and
build best-in-class manufacturing infrastructure.
According to the government, the most striking indicator
of progress is the unprecedented opening up of key sectors
– including railways, defence, insurance and medical devices
– to dramatically higher levels of FDI.
Under the Make in India initiative, an array of measures
focused on the ease of doing business in India has also been
launched. Brand new, IT-driven application and
tracking processes are replacing files and slashing
red tape.
A number of new initiatives have been
launched to streamline and rationalise licensing
rules at the state government level, aligning
them with global best practices.
From amendments in the labour law
to online filing of returns, and from
rationalisation of the regulatory
environment to increasing the
validity of industrial licenses,
a lot of changes have been
ushered in to make ‘Make in
India’ a reality.
“Today, India’s credibility
is stronger than ever,” asserts
a statement by the Prime
Minister’s Office. “There is visible
momentum, energy and optimism.
Make in India is opening investment doors.
Multiple enterprises are adopting its mantra.
The world’s largest democracy is well on its
way to becoming the world’s most powerful
economy.”
Nation-building initiatives
The Make in India initiative, launched by Prime Minister
Modi in September 2014 as part of a wider set of nationbuilding
initiatives, has been devised to transform India into a
global design and manufacturing hub.
The initiative represents a comprehensive and
unprecedented overhaul of out-dated processes and
policies. Importantly, it represents a complete change of the
government’s mindset – a shift from issuing authority to
business partner, in keeping with Prime Minister’s tenet of
‘Minimum Government, Maximum Governance’.
The Department of Industrial Policy & Promotion (DIPP)
worked with a group of highly specialised agencies to build
brand new infrastructure including a dedicated help desk and
a mobile-first website that packed a wide array of information
into a simple, sleek menu.
9

Prime Minister Narendra Modi’s Make in India
initiative is built on layers of collaborative effort
Designed primarily for mobile screens,
the site’s architecture ensured that
exhaustive levels of detail are neatly
tucked away so as not to overwhelm the
user. Twenty-five sector brochures were
also developed: contents included key
facts and figures, policies and initiatives
and sector-specific contact details, all of
which was made available in print and on
site.
The Make in India initiative has been
built on layers of collaborative effort.
DIPP initiated the process by inviting
participation from Union Ministers,
Secretaries to the Government of India,
state governments, industry leaders, and
various knowledge partners.
Its efforts have resulted in the
single largest manufacturing initiative
undertaken by a nation in recent
history. They also demonstrated the
transformational power of public-private
partnership, and have become a hallmark
of the Make in India initiative.
The Indian government has engaged
with the World Bank group to identify
areas of improvement in line with its
‘doing business’ methodology.
Four pillars of Make in India initiative
The four pillars of the Make in India
initiative include: new processes,
new infrastructure, new sectors and
new mindset.
New processes
Make in India recognises ‘Ease of doing
business’ as the single most important
factor to promote entrepreneurship.
A number of initiatives have already
been undertaken to ease the business
environment. The aim is to de-license
and de-regulate the industry during
the entire life cycle of a business.
New infrastructure
Availability of modern and facilitating
infrastructure is an important
requirement for the growth of
industry. The government aims to
develop industrial corridors and smart
cities to provide infrastructure based
on state-of-the-art technology with
modern high-speed communication
and integrated logistic arrangements.
Existing infrastructure will
be strengthened and upgraded
in industrial clusters. Innovation
and research activities are being
supported through a fast-paced
registration system; consequently, the
infrastructure of Intellectual Property
Rights registration set-up has been
upgraded.
New sectors
‘Make in India’ has identified
25 sectors in manufacturing,
infrastructure and service activities
and detailed information is being
shared through an interactive webportal
and professionally developed
brochures.
The government has opened FDI in
Defence Production, Construction and
Railway infrastructure in a big way.
New mindset
Indian industry has been accustomed
to see the government as a regulator.
But ‘Make in India’ intends to change
this by bringing a paradigm shift
in how government interacts with
industry. It will partner industry in
the economic development of the
country. The approach will be that of a
facilitator and not regulator.
10

Investor Facilitation Cell
An Investor Facilitation Cell (IFC) dedicated for the Make
in India campaign was formed in September 2014 to assist
investors in seeking regulatory approvals, hand-holding
services through the pre-investment phase, execution and
after-care support.
Indian embassies and consulates have also been told to
disseminate information on the potential for investment in
the identified sectors.
DIPP has set up a special management team to facilitate
and fast track investment proposals from Japan.
Similarly ‘Korea Plus’, launched in June 2016, facilitates
fast track investment proposals from South Korea and offers
holistic support to Korean companies wishing to enter the
Indian market.
Six industrial corridors are being developed across various
regions of the country. Industrial cities will also come up
along these corridors.
The DIPP, along with the Karnataka government, organised
a Make in India conference, ‘Karnataka Calling,’ in Bengaluru
in February. The two-day Conference featured 10 sectoral
sessions that were attended by prominent dignitaries, industry
leaders and investors.
More than 2,500 delegates from India and abroad were
a part of the conference, with around 600 B2B meetings
scheduled across different focus sectors.
The conference, a part of the Make in India initiative, was
held to seek investments in key sectors such as electronics,
aerospace and defence among others, as well as to showcase
Karnataka’s potential as an investment hub.
The positive climate for investments in India today can be
greatly attributed to the government’s efforts to streamline
processes such as single-window clearances for project
approvals, building plan approvals and getting electricity,
among others, says the spokesperson.
Liberalising FDI regime
The government has also liberalised the FDI regime, making
India one of the most open economies in the world.
One of the major focus areas for the government, which
is poised to play a big role in the Make in India initiative, is
the aerospace and defence sector. India’s aviation market is
growing at a rapid pace and is anticipated to become the
third-largest globally by 2020.
Heavy equipment and machine tools is another sector
that is crucial for the growth of the economy. A session on
‘Reinventing the new growth paradigm – Machine Tools and
Heavy Engineering’ discussed India’s potential to become a
major hub for the heavy engineering industry.
The conference also featured a session ‘Moving towards
Global Competitiveness: Biotechnology and Pharmaceuticals’.
India is already ranked among the top 12 biotechnology
destinations in the world and second in Asia.
The pharmaceutical industry has been a key contributor
to the growth of the country’s economy. Kiran Mazumdar
Shaw, a pioneer in the biotechnology industry, echoed the
significance of manufacturing to propel the future of the
country. She welcomed the emergence of startups in the
sector, but emphasised the need for innovation.
The startup movement is inextricably linked to the “Make
in India” initiative. With the technology landscape undergoing
an evolution, there is a rising breed of manufacturing startups
that are driving innovation and opening wider avenues for
growth in the country.
Most of these startups are working towards the application
of modern technologies in domains such as automobiles,
logistics and food processing, among others.
Driving innovation
Manufacturing startups are driving innovation and widening
the frontiers of the industry by opening new avenues for
growth in the country. Indian entrepreneurs are going beyond
app-based businesses and creating innovative products using
robotics and artificial intelligence, big data and analytics.
With nearly 5,000 startups, India has the third-largest
startup ecosystem in the world.
Providing impetus to startups is significant for achieving
the vision of Make in India and budding entrepreneurs are
playing a key role in taking this campaign to its next level. The
next generation of Indian startups focuses on the application
of modern technologies in domains such as automobiles,
logistics, hardware and food processing.
According to the spokesman, their mushrooming growth,
specifically in the tech-dominated startup space, can be largely
attributed to government initiatives such as Startup India, a
programme based on an action plan to boost innovation and
startups in the country.
The government is offering simplification and handholding,
tax incentives, funding support, IPR protection benefits and a
dedicated hub to provide support to startups.
“Today, India’s credibility is stronger than ever,” says
a government spokesperson. “There is visible momentum,
energy and optimism. Make in India is opening investment
doors. Multiple enterprises are adopting its mantra. The
world’s largest democracy is well on its way to becoming the
world’s most powerful economy.”
11

Invest India
Deepak Bagla
Managing Director
and CEO,
Invest India
Ensuring
hand-holding
support to
investors
Its team of domain and functional experts provide sectorand
state-specific inputs, and hand-holding support to
investors through the entire investment cycle, from preinvestment
decision-making to after-care. Invest India
officials assist with location identification, expediting
regulatory approvals, facilitating meetings with relevant
government and corporate officials and also provide aftercare
services that include initiating remedial action on problems
faced by investors.
All facilitation and hand-holding support to investors
under the ‘Make in India’ programme is provided by Invest
India. The organisation has been promoted by the Department
of Industrial Policy & Promotion (DIPP), Ministry of Commerce
and Industry, state governments and the Federation of Indian
Chambers of Commerce & Industry.
Deepak Bagla, Managing Director and CEO, Invest India,
talks to us about the gamut of service being offered by the
organisation to potential investors in the country. Excerpts
from the interview:
It is the first point of reference for
potential investors, seeking to bring
funds into the country for new
projects. The official investment
promotion and facilitation agency of
the Indian government, Invest India
is mandated to facilitate investments
into the country
Tell us about Invest India. When was it established?
What is the mandate and what kind of role does Invest
India play in facilitating investments into India?
Invest India is the National Investment Promotion and
Facilitation Agency, mandated to facilitate investments into
India. It is envisaged to be the first point of reference for
potential investors. Our experts, guide investors through their
entire investment cycle, providing them both sector- and
state-specific inputs.
We are also the investors’ voice to the central and state
governments to ease the investment process. Invest India’s
team of domain and functional experts provide sector and
state-specific inputs, and hand-holding support to investors
through the entire investment cycle, from pre-investment
decision-making to after-care.
Invest India assists with market strategy, business plan
advisory, location identification; expediting regulatory
approvals; facilitating meetings with relevant government
and corporate officials, and provide services that include
12

13

initiating remedial action on problems faced by investors.
All facilitation and hand-holding support to investors
under the ‘Make in India’ programme is being provided by
Invest India.
Invest India also houses the Start-up India Hub, the
single point of contact for the entire start-up ecosystem. It
connects start-ups to relevant stakeholders in the Central and
State governments, Indian and foreign VCs, angel networks,
incubators and more. More than a nodal agency, Start-up
India Hub guides start-ups through their lifecycle - from
obtaining financing to expansion.
Invest India is promoted by the DIPP, Ministry of Commerce
and Industry (Indian government), state governments and the
chambers of commerce in India.
Do you charge for any of these services?
Invest India is a not-for-profit organisation, funded by the
Government of India, that does not charge for its services.
What has been the response of potential investors to
the services provided by Invest India? Has there been
good response from the Gulf and the Middle East?
Potential investors have welcomed the setting up of Invest
India as a one-stop shop for all investment-related queries
and support. Invest India has also reached out pro-actively
to various potential investors around the world, making them
aware about its mandate, inviting them to India and assuring
them of the best possible help in their investment plans.
Investors are above all, glad that there is a fully dedicated
organisation to address their issues and give them advice on
their needs.
There has been a positive response from the Gulf and
the Middle East region after Invest India was set up. We are
currently facilitating a number of investments from this region
across various sectors. We have people in our organisation
who have worked in this region, so they know the cultural and
social necessities while engaging with investors.
Companies from the Middle East also have a lot of
Indian diaspora who have set up companies there or who
are operating at senior management level in companies.
They want to contribute to their motherland by setting up
operations in India, and we have been engaging with them on
a continued basis to make sure that their investment journey
into India is smooth and easy.
How do you assess the success of Make in India so far?
FDI has shown an extremely positive trend since the launch
of Make in India, with growth of 49% on FDI inflow and 62%
since the launch of the initiative over the corresponding
period previous to it. Some of the global rankings where India
has shown improvements after Make in India launch are
highlighted below:
destination for global investors in 2015 in a report by EY.
Profitability Index in 2015. India was ranked at the 6th
position in Baseline profitability index in 2014 (Source:
Foreign Policy Magazine)
leading manufacturers. India has jumped by three positions
from ninth position in the previous report. The growth
rate of Manufacturing Value Added (MVA) of India was
5.5 % in 2014 and 7.6 % in 2015. (Source: International
Yearbook of Industrial Statistics – UNIDO)
in global innovation index. India was ranked 81 in 2015.
(Source: Cornell University, INSEAD, and WIPO)
Performance Index by 19 positions when compared with
its ranking in 2014. India’s ranking has jumped from 54 in
2014 to 35 in 2016.
(Source: The World Bank)
retail potential in the 2016 Global Retail Development
Index (GRDI). India was rated 15 in the 2015 Global Retail
Development Index. (Source: AT Kearney)
14

last year’s 55th position in the Global Competitiveness
Index, highest jump of any country this year. In 2014
India was in the 71st position as per GCI 2014. India has
thus jumped 32 positions in two years. (Source: World
Economic Forum)
Do you help all, irrespective of whether it’s an individual,
a company or a PPP project or a foreign company looking
to set up shop in India? Is there a minimum investment
requirement or any qualifying criteria / conditions to be
met before you step in to assist?
Invest India helps all investors looking to enter India, whether
an individual, a company or a PPP project. There is no minimum
investment requirement and the investors can be from any
sector. We provide assistance through the entire investment
cycle - right from how to enter India to functioning as your
voice in the system, post investment.
What are your achievements so far?
Some of the key milestones we have achieved, in the past few
months indicate how fast we are moving:
Agency by United Nations Conference on Trade &
Development in 2016
the Best Investment Promotion Agency in South, East Asia
and Oceania region at Annual Investment Meet in Dubai
Indian-Ocean Rim Association (IORA) Investment Awards
2016
Invest India has responded to approximately 58,000
queries this far and the number is only multiplying.
The Government of India has opened several sectors such
as medical devices, insurance and pension funds, railway
infrastructure, defence, and construction. India currently has
one of the most liberal FDI regimes in the world. There has
been considerable action on administrative and procedural
reforms which will provide comfort for the setting up of new
business and improve the confidence of investors.
Procedures have been simplified and placed online for
greater transparency and time-bound approvals. Trade
procedures, company registrations, and several other
regulatory requirements are now digitised. Environmental and
other clearances have been expedited.
India is at a very strategic inflexion point of greater
economic prosperity and Team Invest India is committed to
bringing the Prime Minister’s vision to reality.
15

Smart Manufacturing
‘Make in India’
initiative spearheading
adoption of Industry 4.0
Businesses, government departments and institutions in India are
rapidly adapting to the new concept of ‘Industry 4.0,’ the growing trend
of automation and data exchange in manufacturing technology
The new buzzword in Indian government, industry
and business circles is ‘smart manufacturing,’ or as
it is known officially around the globe, ‘Industry 4.0.’
In fact, the government’s Make in India initiative
itself is spearheading the wider adoption of ‘Industry 4.0,’ in
the country. It reflects the combination of industry and the
current Internet of Things (IoT) technology.
The transformative journey of manufacturing through
Industry 4.0 has already begun in India, thanks to its enormous
strengths in information technology and a huge workforce of
IT professionals.
Indeed, the Smart Cities Mission of the government –
which envisages building 100 smart cities across India – is
being touted as the forerunner of Industry 4.0.
The Indian Institute of Science, Bengaluru, is building
the country’s first smart factory, with seed funding from
global aircraft manufacturer Boeing Company. German auto
component producer Bosch is also setting up 15 ‘smart
manufacturing’ units across the country.
And GE of the US has invested $200 million in a multimodal
factory in India, where digitally interlinked supply
chains, distribution networks and servicing units form part of
an intelligent ecosystem.
Digitising the manufacturing sector
The ‘Industry 4.0’ concept is expected to change the way
Indian companies manufacture, design and refurbish a range
of products. Big data, high computing capacity, artificial
intelligence and analytics will ensure that Industry 4.0 will
completely digitise the manufacturing sector in the country.
According to government sources, Industry 4.0 will
bring together conventional and modern technologies in
manufacturing to India. It will result in the setting up of ‘smart
factories,’ in which all the machines are digitally connected
and have access to a huge amount of data.
The new technology would help India to achieve its goal
of emerging as a global hub for manufacturing, design and
innovation and augment the share of manufacturing in the
GDP – from the current 16 per cent to 25 per cent by 2022.
Indeed, the adoption of Industry 4.0 becomes imperative
to increase competitiveness and build efficient value chains,
according to an official note.
But with increasing digitalisation and automation, the
major advantage of India’s manufacturing industry – cost
advantages – will reduce over a period of time.
To counter this, Indian manufacturers will also have to
increasingly adapt digitalisation and Industry 4.0 assumes
significance. The Indian government has set a target of 25
per cent for the sector’s contribution to GDP by 2022; this will
also generate 100 million jobs.
High rate of digitisation
According to a report by PwC on India’s Industry 4.0 segment,
digital is now a priority for most CEOs of industrial companies
in the country. More than a quarter (27%) of the industrial
companies in its survey rated their level of digitisation as high,
and this value is expected to rise to 65% within the next five
years.
“Industrial leaders in India are digitising essential functions
within their internal vertical operations processes and are
focussed on driving both revenue growth and operational
efficiencies by adopting Industry 4.0,” says the report. “Also, 9
out of 10 companies expect to expand their product portfolio
with digital offerings.”
The consultancy noted that industrial companies in Asia-
Pacific and
16

India have the advantage to leapfrog ahead of those in the
developed economies given their greenfield starting positions.
“As a result, they have fewer legacy issues pertaining to
outdated systems, processes, technological capabilities, etc.,
which need to be addressed,” says the report.
Another global management consulting firm, McKinsey,
had defined Industry 4.0 as the next phase in the digitisation
of the manufacturing sector, driven by four disruptions: the
astonishing rise in data volumes, computational power, and
connectivity, especially new low-power wide-area networks;
the emergence of analytics and business-intelligence
capabilities; new forms of human-machine interaction such
as touch interfaces and augmented-reality systems; and
improvements in transferring digital instructions to the
physical world, such as advanced robotics and 3-D printing.
Two top executives in the firm, however, note that “the four
trends are not the reason for the 4.0. Rather, this is the fourth
major upheaval in modern manufacturing, following the lean
revolution of the 1970s, the outsourcing phenomenon of the
1990s, and the automation that took off in the 2000s.”
The coming of steam power and the rise of robotics resulted
in the outright replacement of 80 to 90 percent of industrial
equipment. “In coming years, we don’t expect anything like
that kind of capital investment. Still, the executives surveyed
estimate that 40 to 50 percent of today’s machines will need
upgrading or replacement.”
A recent Grant Thornton report notes that by 2020, India
is expected to become a major automobile manufacturing
hub and the third largest market for automobiles in the world
contributing approximately 25 per cent of the GDP.
“With this vision, the massive expansion in the Indian
automobile industry makes the country ready for the era
of ‘Industrial Revolution 4.0’ where manufacturing process
can be integrated with growth drivers of Industry 4.0 and
capitalise on the opportunity presented to Indian automotive
market,” says the report.
17

Interview
| Chairman, Dubai Chamber of Commerce & Industry |
Majid Saif Al Ghurair
Chairman,
Dubai Chamber of Commerce & Industry
18

Majid Saif Al Ghurair, who is the CEO of Al
Ghurair Group and Chairman of Dubai
Shopping Malls, was appointed as the
seventh Chairman of the Dubai Chamber
of Commerce & Industry in May 2015.
He has been the Chairman of the Middle East Council of
Shopping Centers (MECSC) since 1994 and is also a Board
Member of the National Cement Co, NASDAQ Dubai, the
Dubai Islamic Economy Development Centre (DIEDC), and Al
Etihad Credit Bureau.
Al Ghurair brings with him a wealth of business
expertise and experience, which is essential in promoting
the development of business in Dubai, and showcasing the
emirate’s potential as a global trade and investment hub.
He was awarded the ‘Business Leader Personality of the
Year 2004’ in the UAE by His Highness Sheikh Mohammed Bin
Rashid Al Maktoum, Vice President and Prime Minister of the
UAE and Ruler of Dubai.
An interview with Al Ghurair, who was in India last month
visiting Mumbai and Ahmedabad. “Through this visit, we hope
to take bilateral relations to the next level before we open a
representative office in India, which we are planning to do
later this year,” he told us during the course of an interview.
‘India is a major focus of our
international expansion strategy’
Excerpts:
Do you see India emerge as a significant trade partner
for Dubai over the coming years?
India is one of the UAE’s top trading partners and Dubai’s
second-largest trading partner. India-UAE relations have
strengthened over the past decades due to political
understanding and common economic interests between the
two countries.
The Indian business community in the UAE has contributed
significantly to bilateral relations and trade. In fact, 29% of all
new companies that registered with Dubai Chamber last year
were Indian, bringing the total number of Indian members to
over 36,000.
Our close relationship with India is symbolic of Dubai
Chamber’s strategy of reaching out to promising markets of
the world, and providing our 201,000 members with access to
new trade and investment opportunities.
19

Our visit to India was
part of our Global
Business Forum
series roadshow,
which has become
an important event
business leaders in
across the world
Headquarters of
Dubai Chamber of Commerce
We expect this unique relationship to strengthen going
forward, as the UAE and India begin to implement the terms
of recent partnership agreements that cover a wide range of
sectors and industries.
Plans are also in the works to introduce five-year business
and tourist visas to India for UAE citizens and residents. This is
an important development which stands to significantly boost
bilateral ties.
What are the key factors that Dubai and UAE-based
investors and entrepreneurs look at when they seek
investments in India?
Some of the key aspects we study before leading trade
delegations to target markets include the synergies that exist
between the UAE and other countries, the local business
environment, investment and legal landscape, growth
opportunities, risks and challenges.
With regards to India, we evaluated all of these areas and
identified key sectors in the country that offer our members
the most potential. There are plenty of trade and investment
opportunities, especially within the country’s infrastructure,
hospitality, banking and finance, manufacturing and
construction and pharmaceutical sectors, which we have
explored during this trade mission.
What are your suggestions for changes that can be done
in various segments of the economy in India to attract
more global investors including those from Dubai and
other parts of the Gulf and Middle East?
20

Burj Khalifa in Dubai is lit up in the
colours of the Indian flag on the occasion
of the Republic Day on January 26, 2017
Making it easier for UAE nationals and residents to travel to
India is a great first step in taking bilateral relations to the
next level. We would also welcome any additional measures
that would improve ease of doing business in India, and make
the market more attractive and accessible for UAE-based
companies and investors.
Is there opportunity for Indian investors and
businessmen to invest in Dubai, especially in free zones,
over the coming years?
Dubai has more than 20 free zones which cover a wide range
of sectors and business activities. These economic zones
continue to attract businesses from around the world that
are in search of growth opportunities. This strong appeal
can be attributed to the value-added services that these free
zones provide, as well as the emirate’s world-class logistics
infrastructure, 100% foreign ownership and a simple and
efficient business setup process. Currently, retail, tourism, and
property continue to attract high levels of investment from
Indian and other foreign investors, and this trend looks to
continue in the lead up to Expo 2020.
Are there opportunities in manufacturing and services
in Dubai and other parts of the country?
Dubai’s manufacturing sector is one the key focus areas
of the Dubai Industrial Strategy. This strategy aims to
boost output within the Emirate’s manufacturing sector,
and position Dubai as a preferred manufacturing platform for
global businesses.
A number of policies have been outlined under the
strategy to ensure steady growth in key sectors in an effort
to boost activity and attract more foreign direct investment.
Could you tell us about your recent visit to India
especially Mumbai and Ahmedabad? What are the
agreements that you plan to sign with the government
and public and private sector players?
Our visit to India was part of our Global Business Forum series
roadshow, which has become an important event platform for
engaging with government and business leaders in emerging
markets across the world. We are delighted to bring this
roadshow to India and collaborate with the country’s public
sector players to explore new avenues of cooperation.
India is a major focus of our international expansion
strategy, and we realise the future growth potential that exists
there. By establishing a presence in this massive market, we
can also better assist Indian companies and investors in that
market that want to trade with the UAE, and expand their
footprint in the GCC, Africa and Europe, by leveraging Dubai’s
status as a trade hub.
21

Indian Business Major in the Gulf
A.M. Naik
Group Executive Chairman
Larsen & Toubro
It is one of the largest Indian
manufacturers to have a major
presence in the UAE, the Gulf
and the Middle East. Larsen
& Toubro has been active in
the region, involving itself in
multiple projects for more
than 30 years. An exclusive
article for India@FDI by the
Group Executive Chairman of
the Indian engineering giant
(turnover for March 31, 2016:
`1.03 trillion; international
revenues: `333.02 billion)
Expanding horizons
Larsen & Toubro’s presence in the Middle East spans
more than 30 years. During this period, the share of
our business from the Middle East and the Gulf has
grown to comprise almost 25% of our order book.
The Middle East countries are an integral part of L&T’s growth
strategy and vision to achieve its targets for revenue and
profitability for 2021, which was formulated during our fiveyear
plan in 2016. We are the industry leaders in engineering,
design and construction of major infrastructure projects.
In the Middle East, we have demonstrated our expertise
in a wide array of sectors including urban infrastructure,
hydrocarbon engineering and power transmission and
distribution. We have a presence in almost all the Gulf countries
including the UAE, Oman, Qatar, Kuwait, Yemen, Bahrain and
Saudi Arabia, besides Jordan.
Second to none: L&T is second to none in creating
landmark urban infrastructure. A score of structures executed
worldwide in key markets amplifies its proven ability and core
competency.
Projects executed include high rise commercial and
residential buildings, hospitals, hotels, stadia, airport
infrastructure, factories, roads, bridges and flyovers across the
Gulf countries.
Some of our marquee and world-class projects include the
Al Jazeera Tower, large stadiums in Qatar, high-rise towers in
Dubai and hospitals in Saudi Arabia.
We are also one of the major forces to reckon with in
the power transmission and distribution sector and are one
amongst top three companies in this business in the UAE.
L&T Construction was one of the earliest Indian companies
to commence operations in the Gulf and has over the years
gained significant market presence in the UAE, Oman, Qatar,
Saudi Arabia, Kuwait and Bahrain for executing power
evacuation, transmission and distribution projects on EPC basis.
Today, L&T is all set to provide single-window solutions to
meet the complex power infrastructure requirements in the
Middle East. L&T offers integrated solutions and end-to-end
services from design, manufacture, supply and construction to
commissioning of EHV power transmission line projects.
As an industry leader in augmenting capabilities for urban
mass rail transit systems, we are currently executing metro
projects at Riyadh and Doha.
L&T has bridged people and places in several countries
across the Middle East. We are also present in the region in the
field of electrical automation systems, which is headquartered
in Dubai.
Providing turnkey solutions: In the hydrocarbon
engineering sector, we provide turnkey solutions to the offshore
hydrocarbon sector, encompassing oil and gas exploration,
production, processing and transportation.
We have in-house capabilities in engineering, project
management, procurement, fabrication, installation, hook-
22

up and commissioning, and a dedicated team of experienced
professionals.
L&T Hydrocarbon Engineering offers Engineering,
Procurement and Construction/ Installation and commissioning
(EPCIC) of large integrated process platforms, fast track
multiple wellhead platforms projects, living quarter modules,
compression modules and integrated topsides for floating,
production, storage and offloading (FPSO) units.
We have successfully delivered many projects in the
offshore hydrocarbon sector over the last three decades in the
Middle East. We also offer single-point expertise for executing
large scale brownfield works with minimum downtime.
It draws on its engineering strengths to modularise the
brownfield work for onshore construction, saving offshore
time, thus delivering value for the client. In this sector, we have
been present in the region since 1996 and have executed/are
executing projects worth more than $4 billion.
We have repeatedly demonstrated our ability to offer
custom-designed, cost-competitive solutions to the industry
with impeccable on-time delivery record meeting international
quality and HSE standards.
Today, L&T has built a strong local presence in various Gulf
countries by forming joint-ventures with local partners and
has, thereby, demonstrated its long-term commitment to the
region.
As can be clearly seen, L&T has been an integral part of the
infrastructure development in the Middle East for an extended
duration. We have a significant presence in the region and
work on marquee projects for marquee clients.
We were one of the first engineering and construction
companies to enter the Middle East region, with a special focus
on the UAE. With the growing economic linkages between the
UAE and India, our involvement in the country has also gone
from strength to strength.
Largest trading partners: The UAE and India are the
largest trading partners with total trade of over $75 billion a
year. This is estimated to hit over $100 billion by 2020.
The state visit of His Highness Sheikh Mohammad bin
Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy
Supreme Commander of UAE Armed Forces, to India in January
has laid the foundation for an extensive partnership in areas of
defence, renewable energy, space research and infrastructure
among other areas.
L&T has been at the forefront of private sector participation
in the Indian defence industry for more than 30 years, as well
as the Indian space programme. We have huge experience in
the renewable energy sector, especially Solar Power Projects.
Our information technology arm, L&T Infotech, has also
scaled up its presence in Dubai, as part of our global strategy
to strengthen and accelerate our Middle-East focus. We
are confident that we will be able to leverage this decision
to establish ourselves as a major provider of IT services and
solutions to our esteemed clients in the region.
Dubai presents several advantages for us as a multinational
group straddling various projects in different verticals across
the entire Middle East. The city provides us with unparalleled
connectivity, ease of doing business and a vibrant workforce.
The facilities provided by the city are unmatched
throughout the region. It is no wonder that Dubai is one of
the world’s most popular business hubs with more than half of
the biggest global conglomerates operating offices in the city.
Dubai and the UAE have established themselves as safe
and business-friendly regime, with economic stability with its
connectivity to other global centres, which will be the most
essential part of L&T’s global vision for the foreseeable future.
Below, left-right: The Sheikh Khalifa Interchange, AbuDhabi
construction; Sohar Workshop in Oman
23

Indian investments in the UAE
Thriving market for
major business groups
Indian business enterprises have invested over $50 billion in various activities in the
UAE and are set to expand this in the future
Above, left-right: L&T at Jebel Ali Dubai; Raymond made-to-measure fashion shop in Dubai; Dabur India in Dubai
Top Indian companies have over the years made
significant investments in industrial facilities and
plants, besides distribution networks and warehouses
in the UAE.
Business groups like the Tatas, Birlas, ITC, Essar and Hinduja
and firms like state-owned Indian Oil Corporation, Reliance
Industries, Larsen & Toubro, HCL Infosystems, Nagarjuna
Constructions, Dabur India and others have invested
billions of dollars in facilities in the UAE. Companies
such as Raymond Ltd and Madura Fashion & Lifestyle
(part of the Aditya Birla group), have also invested large sums
in the UAE.
Rough estimates are that Indian business enterprises have
invested about $50 billion over the years in manufacturing,
distribution and sales facilities in the UAE. While many large
Indian business groups have set up facilities, medium and
small enterprises are also increasingly investing in the UAE.
The Jebel Ali Free Zone (JAFZ) alone has nearly a
thousand Indian companies operating within the zone. And
the numbers are growing rapidly every year, as entrepreneurs
from India seek opportunities in the neighbouring region.
The UAE is also seeking increasing participation by Indian
companies for upstream oil and gas investments in the
country. With India being one of the largest energy consumers
in the world, UAE officials are keen that Indian oil and gas
majors would explore investment opportunities in upstream
and downstream oil and gas and petrochemicals sectors in
Abu Dhabi.
India’s buoyant consumer goods and textile sector are also
expanding rapidly in the UAE. Many leading companies plan
to strengthen their presence in the Middle East market in a
big way.
The Jebel Ali Free Zone, Dubai
24

Raymond
Spring
Summer 17
Collection
It’s the
season of new
beginnings
Flowers in full bloom,
birds singing new tunes,
everything is light and
delicate in a way that
seems out of this world.
New colours inspire you,
new textures envelope
you, new ideas consume
you. The colour of the
sky meets the patterns
of the earth giving a
refreshing twist to the
traditional blue.
We call it Ethereal.
Exquisite Spring/
Summer collection of
suiting and jacketing
fabrics from Raymond
now in store.
25

Dubai International
Financial Centre
Ideal
gateway
for
Indian
investments
26

A growing number of
Indian banks, insurance
companies and other
financial sector players are
setting up their presence
at the Dubai International
Financial Centre, in a bid
to cater to clients across
the Middle East, Africa
and Asia
The Dubai International Financial
Centre (DIFC), which was
established in 2004 in a sprawling,
110-hectare district in the financial hub
of the Middle East, saw the first Indian
institution being set up in 2007.
But nine years later, it has more
than 25 Indian firms operating at the
centre and the figures are expected to
jump sharply over the coming years.
Increasingly, Indian firms are looking
at the DIFC – which has emerged as an
engine driving ever-closer economic
ties between the two countries – as the
ideal gateway for investments into the
Middle East, Africa and other parts of
Asia.
As part of its 2024 growth strategy,
DIFC expects the number of Indian
banks and financial service institutions
at the centre to top 100. It also expects
to expand its physical and legislative
infrastructure for financial institutions
looking to fully realise their growth
potential.
The centre, under its ambitious
2024 growth plan, aims to increase
its assets under management to $250
billion (from about $10 billion), host
a thousand financial services firms
and more than double its workforce
to 50,000. Its balance-sheet is set to
expand to $400 billion.
Officials from Dubai have been
interacting extensively with the Indian
government and private and public
sector executives, besides bodies such as
the Gujarat International Finance Tec-
27

Above: Dubai International
Financial Centre
DIFC for Indian banks through investments,
credit lines and liquidity support for the
infrastructure developments
City (GIFT), Indian Merchants Chamber,
professional services consultancy KPMG,
law firm Khaitan & Co and insurance
firms, encouraging Indian companies to
open operations at the centre.
Enormous opportunities
Arif Amiri, CEO, DIFC, points out
that the centre “continues to be the
natural platform for Indian banks and
financial services firms looking to
grow their international presence from
an internationally regulated, English
common law base and unparalleled
connectivity into the fast growing but
underserved MENA region.”
According to him, there are
enormous opportunities at the DIFC
for Indian banks through investments,
credit lines and liquidity support for the
privatisation, economic diversification
and infrastructure developments in the
region. It is also a gateway for foreign
direct investment back into the fast
reforming Indian economy, he adds.
Indian institutions make up the
third-largest community of financial
firms at the centre, ranking next to the
US and the UK. They account for more
than a quarter of the total workforce
employed at the DIFC.
The DIFC envisages a key role for
Indian banks, insurers, law firms and
wealth managers in Dubai. The largest
number of full banking licences has
been issued to Indian lenders at the
centre than to banks from any other
country.
Top Indian banks operating at the
DIFC include the State Bank of India,
ICICI Bank, Punjab National Bank, Union
National Bank and Axis Bank.
Bank of India, the third-largest
public sector lender in the country, also
opened a branch at the DIFC to cater to
customers in the Middle East and Africa.
The bank has a large global Indian
business customer base in the region.
IDBI Bank, a leading Indian financial
services player, is expanding its
operations in the DIFC. The bank, which
set up its DIFC branch in 2010, went in
for a major expansion of its operations
at the centre and is upgrading the
branch as a hub for its global operations.
Assets of the branch have risen to $4
billion and the bank aims to more than
28

Above: Prime Minister Narendra Modi
and His Highness Sheikh Mohammed
bin Zayed Al Nahyan, Abu Dhabi
Crown Prince and Deputy Supreme
Commander of the UAE Armed Forces
double it to $10 billion in about two to
three years.
Catering to needs of NRIs
Federal Bank, a top private sector
bank from Kerala also plans to set up
a branch at the DIFC. According to
Ganesh Sankaran, executive director,
the bank got permission from the RBI
last November for setting up its first
overseas branch in Dubai. The bank
already has two representative offices
in the UAE – in Abu Dhabi and Dubai.
The bank caters to the needs of
hundreds of thousands of NRIs from
Kerala, who are based in the Gulf and
repatriate funds home every month. The
bank claims that NRIs have proven to
be the backbone of its business model.
Time-tested
friendship
When His Highness Sheikh
Mohammed bin Zayed Al
Nahyan, Crown Prince of Abu Dhabi
and Deputy Supreme Commander of
the UAE Armed Forces, was in India as the
chief guest at the Republic Day celebrations
on January 26, he was apprised by Prime
Minister Narendra Modi of progress on a range of
key initiatives including ‘Start
Up India,’ ‘Make in India,’ ‘Smart City,’ ‘Digital
India’ and ‘Clean India.’
The two leaders also reviewed the progress
in realising the $75 billion target for
UAE investments in India’s plans for
rapid expansion of next generation
infrastructure development.
Mr Modi invited UAE’s participation
in India’s National Infrastructure
Investment Master Fund as an anchor
investor. The UAE reaffirmed its interest
in investing in infrastructure development in
India, especially in priority areas such as energy,
power generation and transmission, defence production, industrial corridors
and parks, railways, roads, ports, shipping and logistics.
29

All these moves are
status as a global
business to a $7.8
trillion Middle East,
Africa and South Asia
(MEASA) region”
It has an NRI deposit base of `360
billion, with expatriates from the Gulf
accounting for 80 per cent of it.
Another private Indian bank
with major plans for the Gulf is Yes
Bank, which also hopes to set up an
office at the DIFC. The bank expects
regulatory approvals for the DIFC
branch, just two years after it opened a
representative office in Abu Dhabi.
Two other Indian banks that are
strengthening their presence at the
Dubai International Finance Centre
include Kotak Mahindra Bank and
Axis Bank.
According to Amiri, all these moves
are “a testimony to DIFC’s status as a
global financial services hub, connecting
Indian business to a $7.8 trillion
Middle East, Africa and South Asia
(MEASA) region.”
Even in the non-banking, finance
sector, Indian companies have been
strengthening their presence at the
DIFC. Last year, HDFC Life became the
first Indian insurance company to open
a branch in DIFC. HDFC International
Life and Re Co Ltd has an initial capital
outlay of $12.33 million. The company
offers reinsurance capacity to ceding
insurers and plays to foray into directly
underwriting insurance contracts.
Expanding global footprint
HDFC Life felt it was the right time to
expand its global footprint. “Dubai
continues to serve as a gateway for
global business and investment into
the region,” said a spokesperson.
“DIFC’s world-class legal and regulatory
frameworks combined with Dubai’s
unrivalled connectivity make it an
ideal platform to access finance and
investment across the Middle East,
Africa and South Asia.”
State-owned New India Assurance
Company also opened a regional
hub at the DIFC. It is the company’s
administrative control headquarters for
the Gulf region.
The DIFC notes that companies
including Aditya Birla Sun Life
Asset Management, IL&FS Global
Financial Services, IIFL Private Wealth
Management and Kotak Mahindra
Financial Services benefit from the
platform as it provides to access the UAE’s
NRI community, estimated at 2.6 million.
30

Arif Amiri, Chief Executive Officer of DIFC Authority
and Ajay Pandey, Director and Group CEO of GIFT SEZ
The DIFC also has excellent relations
with the Reserve Bank of India and the
Securities and Exchange Board of India.
Bilateral trade between India and
the UAE adds up to nearly $60 billion
and is expected to touch $100 billion
by 2020. NRIs from the UAE, who
make up nearly a third of the country’s
population, accounted for $15 billion in
annual remittances to India.
According to the DIFC, Indians
have established more than 40,000
companies in the UAE and have also
contributed to an estimated $55 billion
in Indian investments in the UAE,
with $18 billion being invested in real
estate alone.
There is also tremendous potential
for growth of UAE investments in
India, currently estimated at around
$10 billion.
Property assets
About two years ago, Gulf Petrochem
(GP), a multinational energy company,
together with asset and wealth
management services provider Gateway
Investments, launched India’s first
real estate fund under DIFC’s Exempt
Fund, a product offering access to a
We are delighted to
sign this MoU with
GIFT, especially at
growing ever closer...
well-diversified portfolio of ‘Grade A’
property assets in the country.
It was the first DIFC-domiciled
fund focused on Indian real estate
market and aimed to encourage foreign
investments into India by high net
worth individuals and institutions.
Interestingly, DIFC and Gujarat
International Finance Tec-City (GIFT
City) signed a Memorandum of
Understanding to increase cooperation
and collaboration between the two
financial centres in March. The MoU was
signed by Mr Amiri and Ajay Pandey,
director and group CEO of GIFT SEZ.
GIFT City has also signed an
agreement with the Financial Services
Regulatory Authority of Abu Dhabi
Global Market (ADGM) for closer
collaboration in financial market
activities.
The partnership with DIFC will enable
both organisations to “share exchange
of information on banking, financial
service and securities, legislation and
regulation, cooperation in the area
of training, assistance in organising
seminars and conferences on selected
issues enhancing mutual development
of the centres.”
“We are delighted to sign this MoU
with GIFT, especially at a time when UAE
ties with India are growing ever closer,”
remarked Mr Amiri. “India represents
the UAEs third largest trading partner
as well as one of the world’s fastest
growing economies, and natural
synergies between the two centres
exist, which will certainly benefit our
respective clients.”
With several Indian government
departments and undertakings and
private players from the country signing
agreements with the DIFC, India’s
prominence in the financial centre will
continue to expand rapidly over the
coming years.
31

DP World
Huge
Opportunities
in
India
The Dubai-headquartered
company, which has
invested $1.2 billion in
India and plans to bring
in another $1 billion,
sees tremendous growth
potential in the country
over the coming years
For DP World, the leading international, Dubaiheadquartered
port operator, India offers
tremendous growth potential. The company,
which operates about half a dozen container
terminals in India, has the largest portfolio of
investments in ports in the country.
The only foreign operator with six port concessions (and
which has invested $1.2 billion in the sector), it supports close
to 30 per cent of India’s container trade and adds value to
customers outside quayside operations; it has a national rail
licence to operate more than half a dozen container trains
from the hinterland markets to major gateways in the country.
“We are reinforcing our commitment to enabling India’s
growth and economic development through our operations
in the country, where we have invested over $1 billion in
the past supporting over 30% of India’s container trade,”
said Sultan Ahmed bin Sulayem, group chairman and CEO,
DP World, during a recent visit to India. “Being one of the
32

33
Sultan Ahmed
bin Sulayem
Group Chairman
and CEO, DP World

DP World invested about $200 million
to build the container terminal
with an annual handling capacity of
800,000 TEUs (twenty foot equivalent
container units)
34

strongest emerging economies in the world, India offers
immense potential for growth in the maritime sector.”
DP World is seeking opportunities worth more than
$1 billion over the next few years in India. These would
cover expansion in brownfield container terminals, longterm
greenfield container concessions, inland container
depots and expansion of existing inter-modal rail services for
rolling stock.
The Dubai-based port major has contributed significantly
to improvements in the Indian port sector. Last year, for
instance, it hosted MSC Cristina, the longest container vessel,
to call on an Indian port. The 365.96-m long Cristina called
at the Nhava Sheva International Gateway Terminal (NSIGT),
owned by DP World, reinforcing its position as the leading
container terminal operator in India.
Earlier, the NSIGT hosted MSC Francesca, the largest vessel
to call at an Indian port.
Topping productivity at Indian ports
In 2017, DP World slashed container dwell times at the Nhava
Sheva International Container Terminal dramatically, topping
productivity at Indian ports. The overall average dwell time at
35

privately managed container
Above: DP World Nhava Sheva;
Below: DP World Jebel Ali; Cochin Port;
Facing page: DP World London Gateway
Crane Operators in Jebel Ali
the port was slashed to 2.34 days from 2.84 thanks to gate
automation and other process innovations.
Its other company, the NSIGT, also lowered its dwell time
in December 2016 to 2.67 days from 4.52 days in November.
The Indian government’s Jawaharlal Nehru Port Trust
awarded DP World the project of building and operating
the single berth facility of 330 metres quay length along its
existing terminal operation at Nhava Sheva, which is located
near Mumbai, and is India’s largest port, handling nearly half
the country’s maritime traffic.
DP World invested about $200 million to build the
container terminal with an annual handling capacity of
800,000 TEUs (twenty foot equivalent container units) and
draft of 13.5 m. The new quay has been awarded for a 17-year
concession period and will be equipped with 4 rail mounted
quay cranes and 12 rubber tyred gantry cranes.
Core business
Globally for DP World, container handling is its core business,
generating more than three-quarters of its revenues. In 2016,
the company handled 63.66 million TEUs. Its current gross
capacity of nearly 80 million will shoot up to 100 million TEUs
by 2020.
DP World Nhava Sheva, the first privately managed
container terminal, is the company’s flagship operation in
India. It links to a vast network of inland container depots
(ICDs) in Pune, Nagpur, Ahmadabad, Hyderabad, Ludhiana and
New Delhi through two sets of railway sidings, which ensure
efficient operation.
The terminal is also connected to India’s major highway
and rail networks, which give access to neighbouring Mumbai
and to the hinterland of Madhya Pradesh, Maharashtra,
Gujarat, Karnataka and most of north India.
The terminal operates state-of-the art infrastructure and
provides world-class service to its customers. Interestingly, its
productivity is rated amongst the highest in the world and
it continuously surpasses its own records in throughput and
turnaround times.
Another efficient and award-winning facility of DP World
is the Mundra International Container Terminal (MICT),
operational since 2003, and one of the most technically
advanced port facilities in the Indian subcontinent.
Strategically located at Mundra port in Gujarat, it is the closest
gateway to the largest cargo generating regions of north and
northwest India, and has the ability to handle some of the
deepest container vessels.
DP World has a 100 per cent equity stake in the facility
and executes full operational control of the terminal, which
is open all year round, has no tidal restrictions and is well
connected by road and rail with links to all the major cargo
centres in the northwest hinterland.
MICT has an on-dock rail yard with rail loading facility and
has the inherent advantage of being the nearest port to the
36

northern hinterland, India’s fastest growing region in terms of
container traffic.
The company also opened the Visakha Container Terminal
Pvt Ltd (VCTPL) in Visakhapatnam, a deep-water gateway
terminal on the east coast, in 2003. The container terminal
has superb rail and road connections to the hinterland, with
the unique advantage of being the only terminal on the east
coast with an on-dock rail facility.
Ideal hub port
VCTPL is an ideal hub port for Bangladesh and Kolkata/Haldia
cargo and presents a cost-effective solution to many Indian
importers and traders as it is able to offer superior transit
times to and from the burgeoning Far East markets.
In 2004 DP World won the concession to operate the Rajiv
Gandhi Container Terminal and to develop the International
Container Transshipment Terminal (ICTT) at Vallarpadam, near
Kochi in Kerala.
Cochin Port is located next to the east-west trade route,
only 11 nautical miles from the direct Middle East – Far
East sea-route. No other Indian port enjoys such a strategic
geographic proximity to the major maritime sea routes.
DP World Cochin serves as the natural gateway to the vast
industrial and agricultural produce markets. Improved road
and rail connectivity have substantially reduced the transit
time and logistics cost making the port a preferred gateway
for exports and imports.
Last month, the ICTT expanded its intermodal rail access,
allowing shippers in and around Bengaluru to load their
westbound cargo direct from Vallarpadam without the need
for transshipment via foreign hub ports, especially Colombo
in Sri Lanka, thereby reducing transit times by a minimum of
five to seven days.
The new dedicated train service between Bengaluru and
Kochi will reduce transit time and cost for businesses in
Karnataka. The routing of cargo through the west coast port
would reduce transit time by nearly a week for exporters.
The terminal has dramatically improved its productivity,
ensuring quicker turnaround of vessels.
DP World Chennai is strategically located on the
Coromandel Coast of southeast India and is well connected
with major parts of the world. The terminal is capable of
handling fifth generation vessels up to 6,400 TEU. With the
introduction of direct services to China, West Africa, Europe
and the US, DP World Chennai can service the full exportimport
trade in Chennai and its hinterland.
The company is also developing a greenfield container
terminal on the east bank of Hooghly, about 60 km south of
Kolkata.
The port sector in India is undergoing dramatic
transformation and the coming years will see the business
transform significantly. For DP World, which is growing rapidly
in the country, it promises to be a significant market.
37

Delhi-Mumbai
Industrial Corridor
Leading Amsterdam-based global design and
consultancy firm, Arcadis, recently ranked the Delhi-
Mumbai Industrial Corridor (DMIC) second among 10
of the highest-value construction projects in 2017.
Valued at around $100 billion, it ranks next to the world’s top
construction project, the One Belt, One Road (worth $150
billion), which stretches from China to Central Asia.
The DMIC corridor – spread across a length of 1,500 km
with growth on both sides of the artery of about 150 to 200
km – is India’s most ambitious infrastructure programme.
It aims to develop new industrial townships as Smart
Cities and converging next generation technologies across
infrastructure sectors.
Nirmala Sitharaman, India’s commerce and industry
minister notes that the first phase of the DMIC will see the
development of eight industrial cities, out of a total of 24
investment nodes that have been identified for development.
Environment clearances are obtained after due
consultation process with various stakeholders including
local and municipal bodies, points out the minister. And
work is implemented only after notification of these plans
and clearances.
DMIC is to be implemented in three phases, with the first
one to be completed by 2025 and the final one by 2040. Work
is on in full swing in several places. In Gujarat, for instance,
the state government is determined to complete the 558-
km stretch in the state by next year.
Boosting industrial growth
Nitin Patel, the deputy chief minister of the
state, says the DMIC will further boost the
state’s industrial growth. Indian Railways and
the state government will share costs for
building 141 railway over-bridges to
ensure the smooth functioning of the
new corridor, he adds.
International aerospace major
Airbus will be a strategic partner
of the DMIC to set up an aviationcentred
economic zone at the
Dholera Special Investment Region
in Gujarat, one of the eight smart
cities coming up in the phase of
the project.
According to the DMIC,
Airbus is assessing the region and
will provide inputs on the requirements and
infrastructure specifications for setting up the
cluster, especially for developing an ecosystem
of suppliers for the assembly, testing, delivery
and maintenance of rotary and fixed wing
aircraft, including naval utility helicopters.
38

India’s most ambitious
infrastructure project
Ranked as the second biggest construction project in
the world, the Delhi-Mumbai Industrial Corridor, whose cost will add
up to $100 billion, is rapidly transforming India’s heartland
39

The government aims to invest
about $100 billion in the DMIC
A model of the Dholera Smart City
In the first phase of DMIC, eight new industrial cities
are being developed. About 60 per cent of the projects
would be industrial ones and the rest would focus on
residential and commercial infrastructure besides hospitals
and other facilities.
These eight projects are located in:
Global manufacturing and trading hub
The aim of promoting DMIC is to expand India’s manufacturing
and services base and develop the corridor as a ‘global
manufacturing and trading hub.’ The programme will also
provide a major impetus to planned urbanisation in India with
manufacturing as the key driver.
Besides the setting up of new industrial cities, the
40

programme also envisages development of infrastructure
linkages such as power plants, assured water supply, high
capacity transportation and logistics facilities as well as
softer interventions like skill development programme for
employment of the youth.
The flagship project of the Indian government aims
to create futuristic industrial cities by leveraging the
provided by the Western Dedicated Freight Corridor (DFC).
Besides developing industrial cities along the corridor, the
government is also focused on other projects including
greenfield airports at Dholera, the development of a ‘global
city’ in Gurgaon, a logistics hub in Dadri and a state-of-theart
convention centre in Dwarka.
Recently, the Indian government decided to re-designate
the Delhi-Mumbai Industrial Corridor Project Implementation
Trust Fund as the National Industrial Corridor Development
and Implementation Trust.
The government aims to invest about $100 billion in the
DMIC and other related facilities. Interestingly, this is just the
first corridor to be taken up by the government.
Four additional industrial corridors on the lines of the
DMIC will be developed across the country in partnership
with several state governments to accelerate growth in
manufacturing and planned urbanisation. These include the
Industrial Corridor, the Bengaluru-Mumbai Economic Corridor
and the Vizag-Chennai Industrial Corridor.
The central and state governments have already started
allocating land for the mega project in these states. For
instance, more than 10,000 acres of developed land are being
allocated to potential investors in Gujarat, Maharashtra,
Injecting funds into projects
Many leading international investors are also keen on injecting
funds for these projects, especially Dholera in Gujarat and
Shendra-Bidkin in Maharashtra.
the most ambitious infrastructure projects in India including
the DMIC, the Dedicated Freight Corridor, Delhi Metro, the
low cost, with some attracting an interest rate of just 0.1 per
cent.
The government is promoting this ambitious project at
international events, encouraging global investors to plough
funds into the DMIC. Fortunately, many leading institutions
are keen on participating in this mega project, which will
transform urban India over the coming decades.
41

Gujarat International Finance Tec-City
Expanding ties
with Dubai, Abu Dhabi
India’s first Smart City has been in discussions
with the Dubai International Finance Centre (DIFC)
and the Abu Dhabi Global Market
(ADGM), seeking stronger ties, joint promotion
and easy access to institutions and companies
based both out of India and the UAE
An interview with Ajay Pande, Managing Director
and Group CEO, GIFT City. Excerpts:
42

Ajay Pande
Managing Director and Group CEO,
GIFT City
Do you see growing ties between GIFT and DIFC and
ADGM over the coming years? If so, what are the
reasons?
Yes, we see growing ties between GIFT and DIFC and ADGM in
the fields of real estate, entertainment, retail, hotel, financial
services and infrastructure funding.
India’s first international financial services centre
(IFSC) at GIFT has been in discussion with DIFC and ADGM
for possible collaboration. During our recent visit to the
UAE in February we entered into a formal Memorandum of
Cooperation (MoC).
The cooperation provides for joint promotion of
the financial centres and providing easy access to
institutions based in DIFC and ADGM to set up base in GIFT
IFSC, and vice-versa.
Is there good potential for growth in India-UAE trade
ties over the coming years, especially with the rapid
expansion in exports and imports between the two
countries?
Yes, the expansion in trade ties is the direct indication of
growth between the two counties. The Government of India
has taken various policy initiatives in particular for facilitation
of FDI in and outside India.
Considering both the countries are located in close
proximity it offers a great opportunity for growing ties. Gujarat
offers opportunity for becoming a contract manufacturing
hub for Dubai-based companies.
Could you tell us about your recent visit to the UAE,
where you met officials from the DIFC and ADGM and
explored areas for potential cooperation?
GIFT International Financial Services Centre has been in
discussion with various financial centres across the globe.
We had been in discussion with DIFC and ADGM for possible
collaboration.
Road to faster growth
43

Towering opportunity for
UAE-based investors
44

It is one of the largest projects
in India with a size of around
$16 billion. Considering
the state government is
in Gujarat through GIFT City,
it provides great opportunity
During our recent visit we entered into a formal
Memorandum of Cooperation (MoC), which provides for joint
promotion of both the financial centre and providing easy
access to institutions based in DIFC and ADGM to set up base
in GIFT IFSC and vice-versa.
The cooperation also covers sharing of information,
training and related activities.
Is Gujarat seeking increased investments from the UAE
especially at GIFT?
GIFT City provides multiple opportunities for UAE-based
institutions in the field of real estate, entertainment, retail,
hotel, financial services and infrastructure funding.
It is one of the largest projects in India with a size of
around $16 billion. Considering the state government is
promoting the services sector in Gujarat through GIFT City,
it provides great opportunity for UAE-based institutions to
participate in GIFT City.
What has been the response from the UAE so far in
terms of interests and actual investments at the centre?
With the completion of state-of-the-art infrastructure in
GIFT City the investment is expected to increase from the
UAE as more and more projects are now being offered for
participation.
ETA Dubai has already done a District Cooling plant and
ANC Dubai has done the second tallest tower in Gujarat.
With the signing of cooperation with the Dubai Multi
Commodity Centre, it is expected that many intermediaries
based in DMCC will participate in GIFT IFSC.
Could you briefly tell us about the total investments
that GIFT has attracted from investors, both Indian and
international?
GIFT City has already attracted more than $1.7 billion of
committed investment from various financial institutions and
developers to be made over the next few years.
What about interests from the financial services sector
in the project? Has it been as expected?
GIFT City is India’s first International Financial Services Centre
(IFSC) and has attracted leading financial institutions from the
banking, insurance and capital markets space.
Nine Indian banks have set up their IFSC Banking Units
(IBUs) in GIFT SEZ and done business transactions in foreign
currency worth $2 billion. These include State Bank of India,
YES Bank, ICICI Bank, IDBI Bank, Kotak Bank, Federal Bank,
Bank of Baroda, RBL Bank and IndusInd Bank.
Prime Minister Narendra Modi recently inaugurated India’s
first international stock exchange, the India International
Exchange (INX) set up by Bombay Stock Exchange (BSE). The
international exchange of National Stock Exchange (NSE) is
likely to begin operations in April 2017.
New India Assurance Co Ltd and GIC Re, India’s premier
multinational insurance companies, have opened IFSC
Insurance Offices (IIOs) at GIFT IFSC.
In the domestic area, leading institutions like Bank of
Baroda, Syndicate Bank and Bank of India have started
operations.
India’s premier commodity exchange, Multi Commodity
Exchange of India (MCX) has also set up its office in GIFT.
We have also attracted global IT/ITeS companies like
Oracle, Maxim Integrated and Befree.
What are the key learnings for GIFT from DIFC Dubai as
a global financial centre?
The key learning covers setting up of a separate regulator
for the International Financial Centre, a separate
dispute mechanism system and enabling business
regulation for IFC.
45

FDI in Tourism
The Leela Palace New Delhi
Business Travel:
Enormous Growth
in India
Some of the proudest moments
for Rajiv Kaul, a veteran of
the luxury hotel industry, and
president, Leela Hotels, are
when top leaders from the Gulf
check in at the Leela Palace at
Chanakyapuri in New Delhi
46

Rajiv Kaul
President,
Leela Hotels
The most recent honourable guest to do so was His
Highness Sheikh Mohammed bin Zayed Al Nahyan,
Abu Dhabi Crown Prince and Deputy Supreme
Commander of the UAE Armed Forces, who was
the chief guest at the Republic Day celebrations on
January 26, and stayed at the prestigious property.
“We have been privileged to welcome literally the who’s
who from the Arab GCC nations at the Leela Palace in
New Delhi,” says Mr Kaul. “When any of the top leaders
from the UAE travel to Delhi, we have had the privilege of
hosting them.”
The affection for the Leela brand has now resulted in the
premier group being involved in plans to set up hotels in the
Gulf region. “We have been in active discussions in the UAE
and Qatar and we expect to ink at least two contracts this year
in the region,” he asserts proudly. The hotels should be ready
in about two years.
In the UAE, the Leela group is looking at opportunities
in Dubai, Abu Dhabi and Fujairah, where it plans a corporate
resort. But in all these ventures, the Leela group would be
running the properties on a management contract.
The company is also looking at managing resorts in the
47

Maldives, Mauritius and Seychelles. “We do not plan to make
equity investments abroad, but are keen to take our brand
international and work with local partners,” explains Mr Kaul.
The Leela group operates nine award-winning hotels in
India. This figure is expected to double over the next five years
and interestingly, at least four of the hotels would be located
abroad including the Middle East.
“The Gulf is a very important market for us,” explains Mr
Kaul. “We have created tremendous brand awareness in the
region, especially as some of the topmost dignitaries from
there have stayed at our properties.”
According to him, business ties between India and the UAE
are expanding at a rapid pace. India’s business presence in the
UAE is very strong, he notes. “There is natural affinity between
the two nations and I envisage more investments flowing into
India from the UAE over the coming years.”
With Prime Minister Narendra Modi at the helm, there
is a new mindset in the country, which is being looked at
differently, Mr Kaul told this correspondent in an interview
last week in Mumbai, just hours before he flew to Dubai for
a few days on a business trip. “As Ease of doing business in
India improves genuinely, it will usher in new investments into
the country.”
Referring to the group’s Indian operations, Mr Kaul notes
that its properties have won laurels the world over. Recently,
Travel & Leisure magazine rated the Leela brand in the fifth
48

As Ease of doing
business in India
improves genuinely,
it will usher in new
investments into
the country
Arrive in style at the grand Porte Cochere
of The Leela Palace, New Delhi, where
statues of two white elephants greet you
rank among all hotels in the world. Conde Naste Traveller
magazine had earlier described the Leela Palace hotel in
Bangalore as among the best overseas hotels in the world.
The group operates three properties in Delhi including the
260-room Leela Palace, the 400-room Leela Gurgaon and the
480-room Leela Convention Hotel in east Delhi.
According to Mr Kaul, 80 per cent of the clients at Gurgaon
are from the corporate sector. And the convention hotel has
some of the largest facilities including a 30,000 sq ft banquet
hall, where 4,000 guests can be seated for a convention.
Besides the national capital, Leela operates luxury hotels
in seven other cities including Mumbai, Bangalore, Chennai,
Goa, Kochi, Kovalam and Udaipur.
Referring to the 350-room Leela Palace Hotel in Bangalore,
Mr Kaul says it attracts a lot of Arab travellers who visit the
city for medical purposes. It is also a major IT and commercial
hub, attracting business visitors in large numbers.
The group is also involved in developing a hotel in Agra,
almost facing the Taj Mahal, with a Qatari partner. Its second
hotel in Bangalore is also being developed and a palace hotel
in Jaipur is also coming up.
About 75 per cent of its guests in these properties are
international visitors, notes Mr Kaul.
And as India’s tourism sector – including business tourism
– continues to boom, the hotels industry expects enormous
growth over the coming years.
49

Southern Charm
The southern state of Andhra Pradesh is among the two Indian
participants at the Annual Investment Meeting in Dubai
50

India’s eighth largest state offers several investment
opportunities for global investors. It is endowed
with agrarian, natural, and mineral resources, and is
blessed with the second longest coastline (974 km) in
the country. Besides the strong agrarian base, it has a large
English-speaking human resource base.
The opportunities for investment are plenty in the state. The
government of Andhra Pradesh has undertaken multiple
forward looking initiatives to facilitate investments.
Amaravati, the futuristic capital city, is being built from
ground up in association with Japan and Singapore. Three
upcoming industrial corridors across the state are also set to
provide economic boost to the region.
Blessed with a strong leadership, transparent governance
and best-in-class policies, Andhra Pradesh boasts of providing
a conducive environment for businesses and investors to
flourish.
Tremendous opportunities exist for businesses to venture
into Andhra Pradesh into various sectors including ports and
airports; road, rail and inland water transport (IWT); water
grid; energy; tourism; gas; and social infrastructure.
Nara Chandrababu Naidu
Chief Minister of Andhra Pradesh
Strategically located
The state is an ideal location to get the best
infrastructure any Indian state has to offer
and a gateway to target the attractive subcontinental
market. It is also strategically
located and has the potential to be India’s
gateway to the world, especially Asia,
through port-led development.
The state is witnessing brisk activity in
the port and airports segment. While four
new seaports are being developed, it is also
witnessing the development of a greenfield
international ‘aerotropolis’ in Vizag, and
seven no-frills airports across the state.
Several major road projects are also
coming up in the state, while metro rail
lines are being developed in Vizag and
Vijayawada. There are plans for the
revival of the IWT system.
The government is also taking up piped water supply
projects for industries and towns. In the energy segment, it is
promoting solar parks and wind energy projects.
It is also active in the tourism segment, promoting
Buddhist circuits, the Araku hill station, the beach corridor and
backwater resorts.
The gas segment has opportunities in developing
LNG terminals, cross-country gas grid and city gas
distribution systems. The social infrastructure also has a lot of
opportunities for investors including developing convention
centres, international schools, sports complexes and rail and
bus terminals.
51

The state’s Economic Development Board (EDB) has been
conceived under the leadership of the Chief Minister, Nara
Chandrababu Naidu, to accelerate the inclusive economic
growth of Andhra Pradesh.
The board acts as a catalyst to facilitate economic growth,
investment climate, reforms, and competitiveness in
Andhra Pradesh. Its functions include:
public and private investment
The EDB has eight divisions which help it to effectively
discharge its duties.
External Engagement
Division (EED) promotes
Andhra Pradesh as an
the global community in
Investment Promotion & Project
Facilitation Division (IPPD)
IPPD promotes Andhra Pradesh as the ideal investment
destination to investors in India and abroad. It is a single point
of contact for all investors seeking opportunities in Andhra
Strategic Planning and Policy Division (SPPD)
SPPD is a think-tank for creating a knowledge bank needed for
strategic planning, policy analysis, data analytics, and research,
which are essential for sustaining a double-digit growth within
the committed timelines.
In addition to implementing strategies for the state,
SPPD conducts analysis of national and global development
trends that would facilitate creation and management of an
ecosystem for sustaining a high growth trajectory.
Pradesh and acts as an interface between investors and
the government.
IPPD is also responsible for smoothly implementing
memorandum of understanding, agreements, etc., on behalf of
the government.
External Engagement Division (EED)
It promotes Andhra Pradesh as an investment destination to
the global community in international forums. It is responsible
52

for engaging with governments, multilateral and bilateral
agencies, development banks, trade associations etc. It acts
as a one-stop interface for all engagements with foreign
governments as well as handles investment-related issues with
the government of India.
Public Private Partnership Division (PPPD)
The division is responsible for creating an ecosystem
to promote public private partnership in the state.
It appraises techno-economic feasibility and viability of publicprivate
partnership projects. It also assesses PPP structuring
and the funding provisions, and provides its recommendations
to the State Government, which includes the viability gap
funding.
Resource Mobilisation Division (RMD)
It is responsible for both strategic and operational dynamics
Special Purpose Vehicles Division (SPVD)
It is responsible for conceiving and establishing Special Purpose
Vehicles for the purpose of delivering citizen services, skill
development, financial services, resource mobilisation, smart
cities, new capital city, management of industrial corridor, etc.
While SPVD assists the departments in structuring and
setting up of SPVs, it only coordinates the functioning of those
that cut across multiple departments. Departmental SPVs are
entirely managed by the departments.
Entrepreneurship Development Division (ENDD)
ENDD’s mandate is to translate into reality the chief minister’s
vision of developing entrepreneurship in the state, on a wide
scale. It is responsible for actively promoting the culture of
entrepreneurship and skill development through various
means, including establishing institutes of excellence, holding
seminars and workshops.
related to increasing internal resources (tax and non-tax reform,
user charges, etc.), mobilising central government resources,
mobilising grants and loans financing multilateral and bilateral
international development agencies, and leveraging resources
through securitisation, guarantees, mutual funds, bonds, etc.
RMD has been mandated to administer the Investment
Policy Science Lab
This is responsible for incubating and coordinating the
implementation of special initiatives, which cut across
of developmental outcomes, as deemed necessary by the
government.
The lab develops state-of-the-art practices, innovative
methods and strategies to place Andhra Pradesh on the
forefont of technology.
53

The Heart of India
One of India’s largest states, strategically located in
the heart of the sub-continent, Madhya Pradesh
offers a lot of potential to investors from around
the globe. The state is participating in the Annual
Investment Meeting in Dubai.
Shivraj Singh Chouhan, who has been the state’s chief
minister for more than 11 years, believes that Madhya Pradesh
has experienced “splendid economic recovery” over the past
decade. “Investment in economic, infrastructure and social
sectors dominated the public investment scenario,” he said in
a ‘Madhya Pradesh: Vision 2018’ document.
The chief minister has been actively participating
in overseas events in recent years. About 30 months
ago, he led a 10-member high-level delegation to
the UAE to promote the Global Investors Summit in
Indore and to attract investments.
Mr Chouhan met senior leaders and officials
in Dubai and Abu Dhabi and also potential
investors – including high net worth NRIs
– looking to invest in India. He also visited
the Dubai Multi Commodities Centre
(DMCC), where he was briefed on
various aspects of commodity trading,
especially in diamonds. MP is the only
diamond producing state in India.
“The economic and political stability of the last decade
gives us the strength to consider longer term perspectives for
development,” he declared. “Instead of taking up short-term
and ad hoc measures, we can now strive for the attainment
of broad policy objectives for good governance, accelerated
economic growth and equitable social development.”
Foreign investments
Last month, the chief minister had detailed discussions related
to foreign investments into Madhya Pradesh at a meeting
held in Mumbai with several diplomats. According to
him, international companies had good potential
for investments into a state that had abundant
electricity and water supplies.
The MP Trade and Investment Facilitation
Corporation (MP Trifac) is participating at the
Annual Investment Meeting in Dubai from
April 2 to 4. The corporation acts
as a single window secretariat for
investment promotion and facilitation
in the state.
Shivraj Singh Chouhan
Chief Minister of Madhya Pradesh
Madhya Pradesh
Huge potential for global
businesses
India’s leading
agricultural state
is witnessing rapid
expansion on the
industrial front, as
both national and
international business
groups invest huge
sums in setting up
new facilities
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MP Trifac has developed an ICT (Information &
Communication Technology) enabled single window system,
which allows the investor to apply online for various approvals
required to setup a business in the state.
The corporation aims to:
in Madhya Pradesh
window system for project clearance, implementation and
policy formulation
services by establishing coordination between different
agencies and act as on interface between entrepreneurs
and the government
creating the right business environment in the state by
advising on policy and regulatory measures
MP Trifac provides a one-stop solution to facilitate
potential investors in the state. Thanks to its web portal, it
ensures less physical interaction with various departments and
allows online submission of applications. Its single window
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Madhya Pradesh in the only state in the
country to have diamond reserves, it also
has enormous limestone reserves, eight per
cent of India’s coal reserves and 114 billion
cubic metres of coal-bead methane
system allows investors to apply online for services offered by
various ministries and departments.
Single window clearance
The corporation is an empowered single-window secretariat
for mega projects with investments of over `250 million and
also for thrust sector projects of over `100 million.
It pilots proposals in these categories to the cabinet
committee headed by the chief minister, where a customised
economic package is sanctioned. This includes fiscal concessions
and tax exemptions.
India’s central heartland is a fascinating state with
enormous natural resources. Besides being the only state in
the country to have diamond reserves, it also has enormous
limestone reserves, eight per cent of India’s coal reserves and
114 billion cubic metres of coal-bead methane.
The state is a leader in the production of soybean, pulses,
grams and garlic; it also produces substantial quantities of
wheat, coriander, bananas, oranges, mangoes and lemon fruits.
About 30 per cent of its total land area – of 300,000 sq km
– is covered by forests, which is among the highest for large
states. Rajasthan has less than 10 per cent of land under forest
cover, Uttar Pradesh of about six per cent and Maharashtra of
16.5 per cent.
The state is also a leader in textile manufacturing,
automobiles, food processing, engineering and the manufacture
of agriculture equipment.
For a state that had seen lackadaisical growth over the
past few decades, MP has expanded rapidly in recent years. For
2016-17, its GDP is estimated to have expanded by a hefty 14
per cent.
Be happy
Interestingly, about four months after the UAE
established the Ministry of Happiness last
year, Madhya Pradesh also created a ‘Happiness
Department.’ “Normally, happiness is measured with
economic growth rate which is not entirely correct
as our country for ages believed otherwise,” declared
Shivraj Singh Chouhan, the chief minister, while
announcing the setting up of the department. “There
is something more
which can bring
happiness in the lives
of people.”
Last month on
the International
Day of Happiness
(March 20), Chouhan
tweeted: “I take this opportunity to share that a
Happiness Index is being prepared to be published in
2018. I am glad that feedback from happiness index
survey will be factored into our government policies
and public expenditure priorities.”
Manohar Dubey, CEO, Rajya Anand Sansthan
(state happiness department) said the government
would consult experts to formulate a comprehensive
happiness index. It will be based on the response
to a questionnaire to gauge the happiness quotient
of people.
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