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VOLUME-1 — ISSUE-1 • JANUARY <strong>2018</strong><br />
<strong>India</strong> at<br />
DAVOS
C O N T E N T S<br />
PATHBREAKERS<br />
52 W<strong>in</strong>d <strong>in</strong><br />
FDI Sails<br />
The Vestas facility<br />
<strong>in</strong> Ahmedabad was<br />
up and runn<strong>in</strong>g <strong>in</strong><br />
a record time of<br />
15 months<br />
56 Mak<strong>in</strong>g <strong>India</strong><br />
Future Ready<br />
Present <strong>in</strong> as many<br />
as 28 sectors<br />
<strong>in</strong> <strong>India</strong>, Hitachi<br />
touches millions<br />
of lives across<br />
verticals<br />
58 Brotherhood<br />
of W<strong>in</strong>e<br />
Fratelli, put <strong>India</strong><br />
on the global w<strong>in</strong>e<br />
map and now<br />
has a JV with<br />
France’s Boisset<br />
Collection<br />
60 Conquer<strong>in</strong>g the<br />
Last Frontier<br />
With support<br />
from <strong>Invest</strong> <strong>India</strong>,<br />
Sagar Defence<br />
Eng<strong>in</strong>eer<strong>in</strong>g<br />
launched an<br />
unmanned mar<strong>in</strong>e<br />
surface vehicle<br />
with<strong>in</strong> 30 months<br />
FUTURE READY<br />
Ecosystem<br />
66 <strong>India</strong> on a Start-up<br />
Overdrive<br />
<strong>India</strong>n start-up’s are<br />
f<strong>in</strong>ally com<strong>in</strong>g on to<br />
their own, aided by<br />
policy <strong>in</strong>itiatives and<br />
confident <strong>in</strong>vestors<br />
70 The Team To Go To<br />
As a s<strong>in</strong>gle po<strong>in</strong>t of<br />
contact for <strong>India</strong>’s<br />
start-up ecosystem,<br />
Startup <strong>India</strong> Hub<br />
br<strong>in</strong>gs stakeholders<br />
together<br />
72 Ethereal Mach<strong>in</strong>es<br />
73 Signzy<br />
74 Chakr Innovation<br />
75 Khyeti<br />
76 Mapmygenome<br />
14<br />
PRACTIONERS PERSPECTIVE<br />
Hon. Secretary, Department of Industrial Policy<br />
and Promotion, Mr. Ramesh Abhishek highlights<br />
the role of DIPP <strong>in</strong> attract<strong>in</strong>g FDI to <strong>India</strong><br />
STATE FOCUS: Andhra Pradesh<br />
42-48<br />
The New Andhra<br />
Post bifurcation, Andhra Pradesh<br />
is tak<strong>in</strong>g rapid steps towards development<br />
BEYOND BORDERS: Switzerland<br />
24-26<br />
Partners <strong>in</strong> progress<br />
As Switzerland and <strong>India</strong> mark the 70th anniversary<br />
of their friendship treaty, the two countries are<br />
further <strong>in</strong>tensify<strong>in</strong>g bilateral relations<br />
38<br />
MINISTERSPEAK<br />
Hon. M<strong>in</strong>ister for Commerce & Industries,<br />
Mr. Suresh Prabhu, on <strong>India</strong>’s <strong>in</strong>evitable and<br />
unstoppable path to fast economic growth<br />
SMART NEWS<br />
06 A look at the<br />
latest happen<strong>in</strong>gs<br />
<strong>in</strong> <strong>in</strong>vestment<br />
and policy<br />
RINGSIDE VIEW<br />
08 Foreign Direct<br />
<strong>Invest</strong>ment<br />
Foreign <strong>in</strong>vestors are<br />
tak<strong>in</strong>g long term bets<br />
on the <strong>India</strong>n economy<br />
INDUSTRY SPEAK<br />
22 Putt<strong>in</strong>g <strong>India</strong> first<br />
With 207 branches abroad,<br />
The State Bank of <strong>India</strong> is<br />
play<strong>in</strong>g a significant role <strong>in</strong><br />
attract<strong>in</strong>g FDI to <strong>India</strong><br />
INDUSTRY SPEAK<br />
18 A call for foreign<br />
direct <strong>in</strong>vestment<br />
“<strong>India</strong> needs to<br />
aggressively pursue<br />
ideas wherever<br />
they orig<strong>in</strong>ate that<br />
provide solutions to<br />
her issues”<br />
— Anand Mah<strong>in</strong>dra,<br />
Chairman,<br />
Mah<strong>in</strong>dra Group<br />
SMART TEAM<br />
62-63<br />
<strong>Invest</strong> <strong>India</strong><br />
<strong>Invest</strong> <strong>India</strong> was given the national<br />
responsibility for w<strong>in</strong>n<strong>in</strong>g FDI for <strong>India</strong><strong>in</strong>vestment<br />
promotion and facilitation<br />
SECTOR HIGHLIGHT:<br />
Infrastructure<br />
32-36<br />
Corridor of Prosperity<br />
A spotlight on<br />
the Delhi Mumbai<br />
Industrial Corridor and<br />
it’s potential role <strong>in</strong><br />
transform<strong>in</strong>g <strong>India</strong><br />
Creative Director – Muhammad Jaan Faruqui Merzi Daruwalla<br />
To advertise, contact:Sr<strong>in</strong>ivas Iyer | sr<strong>in</strong>ivas.iyer@mediascope.<strong>in</strong> |<br />
Sharmila Devnani | sharmila.devnani@mediascope.<strong>in</strong> | <br />
This magaz<strong>in</strong>e is pr<strong>in</strong>ted and produced by Mediascope Multimedia (<strong>India</strong>) Pvt. Ltd. Op<strong>in</strong>ions here<strong>in</strong> are the writer’s and do not necessarily reflect the op<strong>in</strong>ions of Mediascope. Editorial enquiries concern<strong>in</strong>g the reproduction of articles,<br />
<br />
<br />
1<br />
INVEST IN INDIA
COMMUNIQUÉ<br />
How FDI will boost new <strong>India</strong><br />
It’s been just over a quarter century s<strong>in</strong>ce <strong>India</strong><br />
liberalized its markets, and the <strong>in</strong>terim years have seen<br />
<strong>India</strong> grow <strong>in</strong>to an economic powerhouse. Rapid GDP<br />
growth has made it a top-10 economy globally, which<br />
<strong>in</strong> turn has made <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>India</strong> crucial for the growth of<br />
many a global corporation, who have been <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>India</strong><br />
and are eager to f<strong>in</strong>d more opportunities.<br />
This <strong>in</strong>augural issue of <strong>Invest</strong> <strong>in</strong> <strong>India</strong> focuses on the<br />
‘New <strong>India</strong>’ and how FDI is play<strong>in</strong>g a key role <strong>in</strong> shap<strong>in</strong>g it.<br />
With an impressive growth figure of 6.7% likely this year,<br />
<strong>India</strong> is one of the fastest grow<strong>in</strong>g economies <strong>in</strong> the world,<br />
accord<strong>in</strong>g to the IMF. The outlook for <strong>India</strong> is optimistic,<br />
especially <strong>in</strong> a global scenario as Ch<strong>in</strong>a’s economy is<br />
slow<strong>in</strong>g down while the first world economies experience<br />
sluggish growth. This has not escaped the attention of<br />
foreign <strong>in</strong>vestors, who are <strong>in</strong>terested to take advantage of<br />
Prime M<strong>in</strong>ister Narendra Modi’s bus<strong>in</strong>ess-friendly policies.<br />
<strong>India</strong> has been the world’s lead<strong>in</strong>g recipient of FDI for the<br />
previous couple of years.<br />
<strong>India</strong>’s f<strong>in</strong>ance m<strong>in</strong>ister, Arun Jaitley, is upbeat that<br />
as one of the world’s fastest expand<strong>in</strong>g economies, <strong>India</strong><br />
will rema<strong>in</strong> a prime location for foreign <strong>in</strong>vestment. He is<br />
confident that 9% to 10% rise <strong>in</strong> GDP would soon be the<br />
new normal <strong>in</strong> <strong>India</strong>. Susta<strong>in</strong><strong>in</strong>g a robust growth tempo<br />
calls for major economic and structural reforms. The<br />
recently launched Goods and Services Tax, for <strong>in</strong>stance, is<br />
a game-changer that can unleash productive forces <strong>in</strong> a<br />
unified domestic market and boost overall expansion of the<br />
economy. Further open<strong>in</strong>g up of the economy is only likely<br />
to attract more <strong>in</strong>vestor <strong>in</strong>terest.<br />
When <strong>in</strong>augurat<strong>in</strong>g the Global <strong>Invest</strong>or Summit <strong>in</strong><br />
Madhya Pradesh, Prime M<strong>in</strong>ister Modi said: “$100bn of<br />
Foreign Institutional <strong>Invest</strong>ors from Japan, Ch<strong>in</strong>a and the<br />
US have applied for visas for entry <strong>in</strong> <strong>India</strong>, Now, it is the<br />
turn of the [<strong>India</strong>n] states to capitalize on this opportunity.<br />
The roads are wide open. The states which are ready can<br />
walk away with a major share.” States such as Gujarat,<br />
Maharashtra, Rajasthan, Haryana and Madhya Pradesh<br />
<strong>in</strong>deed have. Interest<strong>in</strong>gly, others like Andhra Pradesh<br />
and Jharkhand have significantly improved conditions for<br />
do<strong>in</strong>g bus<strong>in</strong>ess, tak<strong>in</strong>g advantage of the FDI <strong>in</strong>vestments.<br />
Andhra Pradesh Chief M<strong>in</strong>ister, N Chandrababu Naidu, often<br />
<strong>in</strong>troduces himself as the state’s CEO.<br />
This <strong>in</strong>augural issue focuses on Andhra’s experience<br />
and how FDI is transform<strong>in</strong>g the state.<br />
No account of <strong>India</strong>’s recent success <strong>in</strong> attract<strong>in</strong>g FDI will<br />
be complete without acknowledg<strong>in</strong>g the role of the prime<br />
m<strong>in</strong>ister. He has visited many countries and aggressively<br />
sought overseas participation <strong>in</strong> flagship schemes such<br />
as Make <strong>in</strong> <strong>India</strong>, Digital <strong>India</strong> and Start Up <strong>India</strong>. Make <strong>in</strong><br />
<strong>India</strong> is a project he launched to encourage companies to<br />
manufacture products <strong>in</strong> <strong>India</strong>. This has played a big role<br />
<strong>in</strong> attract<strong>in</strong>g FDI, not just <strong>in</strong> the automotive sector but also<br />
<strong>in</strong> <strong>in</strong>frastructure, electronics, renewable energy, especially<br />
solar power, food process<strong>in</strong>g to name a few.<br />
<strong>India</strong>’s growth story still has a long way to go. By<br />
showcas<strong>in</strong>g the best of <strong>in</strong>vestment experiences <strong>in</strong> <strong>India</strong>,<br />
this quarterly magaz<strong>in</strong>e chronicles how the myriad<br />
opportunities for FDI are transform<strong>in</strong>g the <strong>India</strong>n economy<br />
and build<strong>in</strong>g a New <strong>India</strong>. Come, <strong>Invest</strong> <strong>in</strong> <strong>India</strong>. <br />
— Editor<br />
2<br />
INVEST IN INDIA
As we usher <strong>in</strong> <strong>2018</strong>, this is a great time to reflect on the<br />
journey of New <strong>India</strong>. Clear national vision, strong political<br />
will and focus on execution has made <strong>India</strong> one of the world’s<br />
most attractive <strong>in</strong>vestment dest<strong>in</strong>ations. The country, led by<br />
Prime M<strong>in</strong>ister Narendra Modi and powered by the passion of her youth,<br />
is rapidly transform<strong>in</strong>g itself.<br />
There has never been a better time to <strong>Invest</strong> <strong>in</strong> <strong>India</strong>. The Honourable<br />
Prime M<strong>in</strong>ister’s <strong>in</strong>itiative to reform-perform-and-transform has<br />
conclusively catapulted <strong>India</strong> <strong>in</strong>to a higher orbit. Moody’s has upgraded<br />
<strong>India</strong>’s rat<strong>in</strong>g after 14 years. This year <strong>India</strong> entered the top-100 countries<br />
<strong>in</strong> the World <strong>in</strong> the World Banks’ ease of do<strong>in</strong>g bus<strong>in</strong>ess rank<strong>in</strong>g. The<br />
“<strong>in</strong>credible jump” – as the World Bank CEO put it – from 130 last year<br />
is the highest for any country. <strong>India</strong> received an unprecedented FDI<br />
of $195 billion <strong>in</strong> the last 42 months and became #1 greenfield FDI<br />
recipient <strong>in</strong> the World as per F<strong>in</strong>ancial Time’s FDI Intelligence. <strong>Invest</strong><br />
<strong>India</strong> was judged the global w<strong>in</strong>ner at UNCTAD <strong>in</strong>vestment promotion<br />
awards and was the most awarded IPA <strong>in</strong> the World <strong>in</strong> 2016-17.<br />
The journey of <strong>Invest</strong> <strong>India</strong> from its <strong>in</strong>fancy <strong>in</strong> 2014 to a global<br />
w<strong>in</strong>ner is best reflective of the story of new <strong>India</strong> – a transformation,<br />
unprecedented <strong>in</strong> speed and scale. In a relatively brief period, <strong>Invest</strong><br />
<strong>India</strong> created impact across many areas. It has been effective <strong>in</strong><br />
<strong>in</strong>creas<strong>in</strong>g the competitiveness of do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> <strong>India</strong>, support<strong>in</strong>g<br />
start-ups and facilitat<strong>in</strong>g pioneer<strong>in</strong>g <strong>in</strong>vestments <strong>in</strong> major sectors.<br />
<strong>Invest</strong> <strong>India</strong> works with multiple government stakeholders such the<br />
central m<strong>in</strong>istries, <strong>in</strong>dependent regulators, state and local governments<br />
and <strong>India</strong>n missions abroad.<br />
It is no longer ‘if’ global corporations want to <strong>in</strong>vest <strong>in</strong> the country<br />
but ‘how’ they could best do so. <strong>Invest</strong> <strong>India</strong> is mandated to answer<br />
this ‘how’ and provide a seamless experience for the <strong>in</strong>vestor from<br />
the global boardrooms to the last mile at the districts and blocks <strong>in</strong><br />
<strong>India</strong>. <strong>Invest</strong> <strong>India</strong> acts as a one stop shop for foreign <strong>in</strong>vestors who<br />
<strong>in</strong>vest <strong>in</strong> <strong>India</strong>. Our experts, who specialize across different countries,<br />
<strong>India</strong>n states and sectors, handhold <strong>in</strong>vestors through their <strong>in</strong>vestment<br />
lifecycle — from pre-<strong>in</strong>vestment to after-care. <strong>Invest</strong> <strong>India</strong>’s specialists<br />
provide multiple services such as market entry strategies, deep dive<br />
<strong>in</strong>dustry analysis, partner search, location assessment and policy<br />
advocacy with decision makers.<br />
Foreign <strong>in</strong>vestments and the start-up ecosystem – primary<br />
mandates of <strong>Invest</strong> <strong>India</strong> and Start-up <strong>India</strong> - have not only added to the<br />
country’s growth and employment but also transformed lives. These<br />
facts and stories are of great <strong>in</strong>terest to all stakeholders – the <strong>in</strong>vestors,<br />
the policy makers and the wider public <strong>in</strong> general and this magaz<strong>in</strong>e, <strong>in</strong><br />
physical and digital form, attempts to dissem<strong>in</strong>ate the same.<br />
F<strong>in</strong>ally, I thank Mediascope <strong>in</strong> successfully execut<strong>in</strong>g and launch<strong>in</strong>g<br />
this publication. <br />
Deepak Bagla<br />
CEO, <strong>Invest</strong> <strong>India</strong><br />
4<br />
INVEST IN INDIA
SMART NEWS<br />
World Bank<br />
arm says<br />
guarantees<br />
can trigger<br />
about five<br />
times as<br />
much <strong>in</strong> FDI<br />
The Multilateral <strong>Invest</strong>ment Guarantee Agency — an arm of<br />
the World Bank group says foreign direct <strong>in</strong>vestment receives<br />
a fillip due to the guarantees. G20 has strongly encouraged<br />
multilateral development banks (MDBs) to help br<strong>in</strong>g <strong>in</strong><br />
more private <strong>in</strong>vestment to develop<strong>in</strong>g countries. With<br />
<strong>India</strong> graduat<strong>in</strong>g to a middle-<strong>in</strong>come country, this change <strong>in</strong><br />
behaviour means more opportunities for private companies<br />
to f<strong>in</strong>ance projects <strong>in</strong> <strong>India</strong>. MIGA is ready to commit $2<br />
billion <strong>in</strong> guarantees <strong>in</strong> <strong>India</strong>, with which a multiplier effect,<br />
<br />
Alibaba looks to <strong>in</strong>vest <strong>in</strong> logistics company XpressBees<br />
E-commerce major Alibaba Group Hold<strong>in</strong>gs is <strong>in</strong> advanced talks to<br />
pick up a significant m<strong>in</strong>ority stake <strong>in</strong> logistics company XpressBees<br />
by mak<strong>in</strong>g an <strong>in</strong>vestment of up to $100 million. The transaction,<br />
which is <strong>in</strong> the f<strong>in</strong>al stages of negotiations, will be Alibaba’s sixth<br />
<strong>in</strong>vestment <strong>in</strong> <strong>India</strong>. XpressBees is the logistics bus<strong>in</strong>ess spun out<br />
<br />
<strong>Invest</strong>ment <strong>in</strong> electronic manufactur<strong>in</strong>g sees<br />
27% hike <strong>in</strong> 2017<br />
Accord<strong>in</strong>g to data released by the M<strong>in</strong>istry of Electronics and<br />
IT, a 27 per cent hike was witnessed <strong>in</strong> the <strong>in</strong>vestment on<br />
electronic manufactur<strong>in</strong>g, with the total volume of <strong>in</strong>vestment<br />
at `1,570 billion <strong>in</strong> 2017, compared to `1,430 billion over the<br />
previous year. The data also revealed that there has been<br />
almost 60 per cent rise <strong>in</strong> the production of mobile phones,<br />
with 175 million units produced compared to 110 million units<br />
last year. This has also added 400 thousand direct and <strong>in</strong>direct<br />
<br />
`10<br />
BILLION<br />
CG Group<br />
looks to<br />
<strong>in</strong>vest<br />
Google<br />
makes its<br />
first direct<br />
start-up<br />
<strong>in</strong>vestment<br />
<strong>in</strong> <strong>India</strong><br />
The global tech giant has acquired a<br />
small stake <strong>in</strong> the Bengaluru-based<br />
daily task management app Dunzo,<br />
its first direct <strong>in</strong>vestment <strong>in</strong> an <strong>India</strong>n<br />
start-up. The $12 million received as<br />
<strong>in</strong>vestment by Dunzo is part of Google’s<br />
Next Billion Users (NBU) commitment.<br />
Founded <strong>in</strong> 2015, Dunzo allows its<br />
users to create to-do lists and gets a<br />
wide variety of tasks and chores done<br />
such as laundry, grocery shopp<strong>in</strong>g,<br />
home ma<strong>in</strong>tenance, pick<strong>in</strong>g up food,<br />
<br />
The central government wants<br />
to attract $100 billion foreign<br />
direct <strong>in</strong>vestment <strong>in</strong> tourism<br />
sector and generate up to 100<br />
million jobs over the next five<br />
years. The tourism m<strong>in</strong>istry has<br />
also formed a work<strong>in</strong>g group with<br />
representatives from DIPP, <strong>Invest</strong> <strong>India</strong>, the tourism m<strong>in</strong>istry and the sector to<br />
discuss the issues fac<strong>in</strong>g the sector and make recommendations. The authority<br />
will also create guidel<strong>in</strong>es as well as best practices for 15-20 identified sub-<br />
<br />
Government keen to woo<br />
Kathmandu-based conglomerate, CG Group is look<strong>in</strong>g to <strong>in</strong>vest `10 billion ($155.97 million) <strong>in</strong> <strong>India</strong><br />
by 2020 <strong>in</strong> its food and beverage bus<strong>in</strong>ess. The company aims to double its hospitality portfolio<br />
by 2020. The group has set up a production unit at Rajasthan with an <strong>in</strong>vestment of `2.5 billion. It<br />
plans to enter the food space with ready to eat products under the Wai Wai Dhaba brand name. Other<br />
product categories <strong>in</strong>clude snacks under the brand name Papa Punte for retail sales and sauces,<br />
<br />
Facebook to<br />
<strong>in</strong>vest <strong>in</strong> start-up<br />
ecosystem<br />
Social media giant Facebook has said it will create opportunities<br />
and <strong>in</strong>vest <strong>in</strong> <strong>India</strong>’s start-up ecosystem <strong>in</strong> <strong>2018</strong>. Accord<strong>in</strong>g<br />
to a spokesperson, Facebook is committed to help<strong>in</strong>g create<br />
economic growth opportunities for start-ups and skill seekers<br />
<strong>in</strong> <strong>India</strong> and will cont<strong>in</strong>ue <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>India</strong>’s future digital skills.<br />
A lot of the focus will be to support small bus<strong>in</strong>esses <strong>in</strong> <strong>India</strong>,<br />
particularly those run by women to help them connect, share<br />
and grow. In November, Facebook had announced accelerator<br />
programmes to help foster future talent that will help tech<br />
start-ups, developers and students <strong>in</strong> <strong>India</strong> build products<br />
<br />
plans<br />
30 NEW<br />
STORES<br />
<strong>in</strong> <strong>India</strong><br />
Walmart <strong>India</strong> Pvt Ltd, the <strong>India</strong>n arm of the world’s<br />
largest retailer, is plann<strong>in</strong>g to set up 30 new<br />
stores <strong>in</strong> <strong>India</strong> over the com<strong>in</strong>g three years. The company<br />
currently has 21 Best Price modern wholesale stores <strong>in</strong><br />
<strong>India</strong>. It is plann<strong>in</strong>g to add five to seven stores this year,<br />
and has plans to add 50 new stores by 2022 to take the<br />
total store count to 70. It has already signed 20 sites for<br />
new stores. In July 2017, Walmart <strong>India</strong> had earmarked<br />
`<br />
SAIC to beg<strong>in</strong> <strong>India</strong><br />
operations by 2019<br />
Ch<strong>in</strong>a’s SAIC Motor Corporation is plann<strong>in</strong>g to enter <strong>India</strong>’s<br />
automobile market and beg<strong>in</strong> operations <strong>in</strong> 2019 by sett<strong>in</strong>g<br />
up a fully-owned car manufactur<strong>in</strong>g facility <strong>in</strong> <strong>India</strong>. The auto<br />
major has entered <strong>in</strong>to an MoU with the Gujarat government<br />
to establish a plant and is look<strong>in</strong>g at an <strong>in</strong>vestment of `2,000<br />
crore <strong>in</strong> the next five years. The project looks to create 1,000<br />
jobs <strong>in</strong> the state and enable five auto ancillary firms to set up<br />
their units <strong>in</strong> the vic<strong>in</strong>ity. SAIC, whose brands <strong>in</strong>clude MG, and<br />
Roewe, besides brands under Volkswagen and General Motors,<br />
is ranked 46th <strong>in</strong> the Fortune Global 500 list of companies with<br />
<br />
6<br />
INVEST IN INDIA<br />
7<br />
INVEST IN INDIA
RINGSIDE VIEW Foreign Direct <strong>Invest</strong>ment<br />
With multiple factors of economic growth <strong>in</strong> its favour, foreign<br />
<strong>in</strong>vestors are tak<strong>in</strong>g long-term bets on the <strong>India</strong>n economy<br />
<strong>Invest</strong><strong>in</strong>g <strong>in</strong> <strong>India</strong> is big bus<strong>in</strong>ess. The fact that <strong>India</strong> is<br />
currently a global economic bright spot has caught<br />
the attention of global <strong>in</strong>vestors. Total FDI <strong>in</strong>flows <strong>in</strong>to<br />
<strong>India</strong> stood at US $60.1 billion <strong>in</strong> 2016-17. Compared to<br />
2013-14, this represents a 75% <strong>in</strong>crease, accord<strong>in</strong>g to the<br />
Department of Industrial Policy and Promotion (DIPP).<br />
<strong>India</strong>n economy is one of the fastest grow<strong>in</strong>g of the large<br />
economies of the world. Crucially, the uptrend cont<strong>in</strong>ues<br />
dur<strong>in</strong>g 2017-18 as well, signal<strong>in</strong>g that foreign <strong>in</strong>vestors are<br />
tak<strong>in</strong>g long-term bets on the <strong>India</strong>n economy. This narrative<br />
of ris<strong>in</strong>g FDI does dovetail with a rapidly expand<strong>in</strong>g economy<br />
as <strong>India</strong> looks poised to become one of the future eng<strong>in</strong>es of<br />
the world economy.<br />
Interest <strong>in</strong> <strong>India</strong> from top global corporations is only<br />
<strong>in</strong>creas<strong>in</strong>g. <strong>Invest</strong>ors such as Unilever CEO Paul Polman are<br />
bullish on <strong>India</strong>’s growth prospects as their bus<strong>in</strong>esses can<br />
double <strong>in</strong> seven or eight years. GE’s <strong>India</strong> bus<strong>in</strong>ess has even<br />
seen a six to seven-fold <strong>in</strong>crease <strong>in</strong> eight years, accord<strong>in</strong>g<br />
to its CEO John Flannery. Not surpris<strong>in</strong>gly, the country<br />
features among the top dest<strong>in</strong>ations for FDI.<br />
Why <strong>in</strong>vest <strong>in</strong> <strong>India</strong>?<br />
Add<strong>in</strong>g to <strong>India</strong>’s attractiveness for <strong>in</strong>vestors is that it is an<br />
outward-oriented economy. Successive adm<strong>in</strong>istrations<br />
s<strong>in</strong>ce the early 1990s ensured that reforms delicensed,<br />
decontrolled and deregulated economic activity and<br />
encouraged greater engagement with the global economy<br />
through trade and <strong>in</strong>vestments. Today, the value of goods and<br />
services produced <strong>in</strong> the country or GDP is worth $2.5 trillion.<br />
Its domestic market is a over 250 million segment which has<br />
atta<strong>in</strong>ed middle-class standards of liv<strong>in</strong>g. <strong>India</strong> also has a<br />
huge population of educated and skilled young people.<br />
Over the last 25 years, the domestic market has reached<br />
sufficient critical mass to attract market-seek<strong>in</strong>g FDI for<br />
manufactur<strong>in</strong>g <strong>in</strong> a range of <strong>in</strong>dustries from automobiles<br />
to smartphones. Susta<strong>in</strong><strong>in</strong>g a rapidly grow<strong>in</strong>g economy<br />
also calls for upgrad<strong>in</strong>g and build<strong>in</strong>g up <strong>in</strong>frastructure<br />
such as ports, airports, highways, dedicated freight and<br />
<strong>in</strong>dustrial corridors, power generation and railway facilities.<br />
These are pegged at a massive $1 trillion, accord<strong>in</strong>g to the<br />
World Bank.<br />
Total FDI <strong>in</strong>flow<br />
grew by 8 per<br />
cent to $60.08<br />
billion <strong>in</strong> 2016-<br />
17, compared<br />
to $55.56 billion<br />
<strong>in</strong> the previous<br />
year. This is the<br />
highest ever FDI<br />
<strong>in</strong>flow for a s<strong>in</strong>gle<br />
f<strong>in</strong>ancial year.<br />
<strong>India</strong>’s FDI boom<br />
a w<strong>in</strong> all game<br />
8<br />
INVEST IN INDIA<br />
9<br />
INVEST IN INDIA
Foreign Direct <strong>Invest</strong>ment<br />
Of the various types of capital flows, FDI is the most<br />
preferred one. <strong>Invest</strong>ments are relatively more stable as<br />
they entail a long-term f<strong>in</strong>ancial commitment, contribut<strong>in</strong>g<br />
to <strong>India</strong>’s economic development. Although it accounts for<br />
only 7 per cent of gross fixed capital formation <strong>in</strong> sett<strong>in</strong>g<br />
up plants and equipment, FDI br<strong>in</strong>gs <strong>in</strong> additional resources<br />
to contribute to overall economic growth. With greater<br />
strategic policy <strong>in</strong>tent, <strong>in</strong>vestors can be encouraged to<br />
br<strong>in</strong>g <strong>in</strong> the latest technology, skills and bus<strong>in</strong>ess model<br />
<strong>in</strong>novations and transfer it domestically.<br />
FDI across sectors<br />
S<strong>in</strong>ce tak<strong>in</strong>g office, Prime M<strong>in</strong>ister Narendra Modi, for his<br />
part, has visited many countries and aggressively sought<br />
overseas <strong>in</strong>vestment. Make <strong>in</strong> <strong>India</strong> is a project he launched<br />
soon after becom<strong>in</strong>g the prime m<strong>in</strong>ister to encourage<br />
manufactur<strong>in</strong>g. His other flagship drives are Start Up <strong>India</strong><br />
and Digital <strong>India</strong>.<br />
He has pitched for FDI across sectors – <strong>in</strong>frastructure,<br />
automotive, electronics, clean and renewable energy and<br />
food process<strong>in</strong>g, among others.<br />
PM Modi has envisioned a diamond quadrilateral of<br />
bullet tra<strong>in</strong>s connect<strong>in</strong>g major metropolises <strong>in</strong> the country<br />
on the Tokaido Sh<strong>in</strong>kansen model. He has talked about<br />
dedicated freight and <strong>in</strong>dustrial corridors and develop<strong>in</strong>g<br />
100 smart cities. Ground-break<strong>in</strong>g ceremonies were held<br />
for the first bullet tra<strong>in</strong> between Mumbai and Ahmedabad<br />
when Japanese Prime m<strong>in</strong>ister Sh<strong>in</strong>zo Abe visited <strong>India</strong> <strong>in</strong><br />
September 2017.<br />
The PM has <strong>in</strong>vited major project announcements<br />
<strong>in</strong> solar power, clean<strong>in</strong>g rivers such as the Ganga, smart<br />
cities, <strong>in</strong>dustrial parks and digital technologies. He keenly<br />
desires that <strong>India</strong> become a global hub for the export of<br />
labour-<strong>in</strong>tensive manufactur<strong>in</strong>g. His economic vision is<br />
to kick-start <strong>India</strong>’s growth story by emulat<strong>in</strong>g East Asian<br />
economies that achieved rapid rates of economic growth,<br />
thanks to boom<strong>in</strong>g exports to the US.<br />
Global reach<br />
<strong>India</strong> has seen significant <strong>in</strong>vestment commitments from<br />
Japan, Ch<strong>in</strong>a and South Korea. The US too looks to cash <strong>in</strong>.<br />
Foreign <strong>in</strong>vestors are be<strong>in</strong>g encouraged to <strong>in</strong>vest <strong>in</strong> <strong>India</strong>’s<br />
manufactur<strong>in</strong>g sector as <strong>India</strong> has set itself a target of<br />
rais<strong>in</strong>g the contribution of the sector at about 25 per cent<br />
with<strong>in</strong> the decade. The manufactur<strong>in</strong>g sector has a huge<br />
potential to absorb <strong>India</strong>’s millions as they make the shift<br />
from rural to urban lives.<br />
The government has raised FDI limits <strong>in</strong> defence and<br />
<strong>in</strong>surance; allowed FDI <strong>in</strong> food retail among other sectors<br />
and created one of the most open regimes for attract<strong>in</strong>g<br />
FDI by abolish<strong>in</strong>g the Foreign <strong>Invest</strong>ment Promotion Board,<br />
among various other reforms.<br />
Via <strong>Invest</strong> <strong>India</strong><br />
<strong>Invest</strong> <strong>India</strong>, the country’s <strong>in</strong>vestment promotion and<br />
facilitation agency, has been tasked with be<strong>in</strong>g the first<br />
po<strong>in</strong>t of contact for all <strong>in</strong>vestor needs. With aid and advice<br />
about <strong>in</strong>vest<strong>in</strong>g and do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> <strong>India</strong>, <strong>Invest</strong> <strong>India</strong><br />
handholds foreign <strong>in</strong>vestors throughout their <strong>in</strong>vestment<br />
INVEST INDIA<br />
World’s Most<br />
Awarded IPA<br />
$83 billion<br />
7,67,000<br />
Average age 29 years<br />
[2015-2017]<br />
FDI <strong>in</strong> the<br />
pipel<strong>in</strong>e<br />
Indicated Potential<br />
Employment<br />
Employees with degrees from<br />
premier universities such as IIMs,<br />
IITs and Top Global Institutes<br />
SOURCE: INVEST INDIA<br />
Total Foreign<br />
Direct <strong>Invest</strong>ment<br />
Equity Inflows<br />
From 2000-01<br />
to 2016-17<br />
Year<br />
In $ million<br />
2000-01 2,378.68<br />
2001-02 4,027.69<br />
2002-03 2,704.34<br />
2003-04 2,187.85<br />
2004-05 3,218.69<br />
2005-06 5,539.72<br />
2006-07 12,491.77<br />
2007-08 24,575.43<br />
2008-09 31,395.97<br />
2009-10 25,834.41<br />
2010-11 21,383.05<br />
2011-12 35,120.80<br />
2012-13 22,423.58<br />
2013-14 24,299.33<br />
2014-15 30,930.50<br />
2015-16 40,000.98<br />
2016-17 43,478.27<br />
The World Bank has<br />
stated that private<br />
<strong>in</strong>vestments <strong>in</strong> <strong>India</strong> are<br />
expected to grow by 8.8<br />
per cent <strong>in</strong> <strong>2018</strong>-19 and<br />
will overtake private<br />
consumption growth of<br />
7.4 per cent, thereby<br />
driv<strong>in</strong>g the growth <strong>in</strong><br />
<strong>India</strong>’s GDP <strong>in</strong> <strong>2018</strong>-19<br />
Fac<strong>in</strong>g page: PM Modi has<br />
<strong>in</strong>vited major project<br />
announcements <strong>in</strong> solar power;<br />
Right: Eng<strong>in</strong>e <strong>in</strong>stallation for<br />
Wagon R at Maruti Suzuki’s<br />
Gurgaon plant <strong>in</strong> <strong>India</strong><br />
cycle. This agency is also track<strong>in</strong>g forward–look<strong>in</strong>g or<br />
lead<strong>in</strong>g <strong>in</strong>dicators of <strong>in</strong>ward FDI <strong>in</strong>dicators. <strong>Invest</strong> <strong>India</strong> is<br />
also follow<strong>in</strong>g up on <strong>in</strong>vestments of $83 billion of FDI.<br />
Real estate majors Dalian Wanda, Ch<strong>in</strong>a Fortune Land<br />
Development and CASME are actively bidd<strong>in</strong>g for build<strong>in</strong>g<br />
large-scale <strong>in</strong>dustrial cities. While these are significant<br />
<strong>in</strong>vestments <strong>in</strong> the pipel<strong>in</strong>e, <strong>Invest</strong> <strong>India</strong> has fast-tracked<br />
many foreign <strong>in</strong>vestments proposals to get off the ground <strong>in</strong><br />
record time. W<strong>in</strong>d energy company Vestas’s experience is<br />
featured <strong>in</strong> this edition.<br />
Ever s<strong>in</strong>ce this flagship scheme was flagged off,<br />
foreign <strong>in</strong>vestors have responded with an uptick <strong>in</strong> FDI<br />
<strong>in</strong>flows <strong>in</strong>to manufactur<strong>in</strong>g, accord<strong>in</strong>g to DIPP data.<br />
Inflows <strong>in</strong>to manufactur<strong>in</strong>g rose from $16.5 billion <strong>in</strong><br />
2014-15 to $20.3 billion <strong>in</strong> 2016-17. These constitute<br />
less than half of the $43.5 billion of foreign equity <strong>in</strong>flows<br />
<strong>in</strong> 2016-17. Inflows to the manufactur<strong>in</strong>g sector witnessed<br />
a growth of 4% <strong>in</strong> comparison to previous three f<strong>in</strong>ancial<br />
years (from $ 48.03 billion to $50.09 billion). With an<br />
<strong>in</strong>creas<strong>in</strong>gly friendlier bus<strong>in</strong>ess environment, such <strong>in</strong>flows<br />
are expected to grow.<br />
<strong>India</strong>, the future auto hub<br />
Evidence is already visible across sectors. Take automobiles<br />
for <strong>in</strong>stance. Huge <strong>in</strong>vestments have been announced by<br />
global automakers. <strong>India</strong> is a global auto manufactur<strong>in</strong>g<br />
hub <strong>in</strong> the mak<strong>in</strong>g. This sector has acquired critical size as<br />
almost all global orig<strong>in</strong>al equipment manufacturers (along<br />
with strong domestic players) have set up facilities <strong>in</strong> <strong>India</strong>.<br />
This has catalyzed a thriv<strong>in</strong>g auto component <strong>in</strong>dustry.<br />
Maruti Suzuki <strong>India</strong> Ltd, which accounts for 50% of <strong>India</strong>’s<br />
car market, has already built its third factory <strong>in</strong> Gujarat. It<br />
plans to <strong>in</strong>vest $600 million for a new plant <strong>in</strong> Hansalpur,<br />
add<strong>in</strong>g to its facilities <strong>in</strong> Gurgaon and Manesar.<br />
At a bus<strong>in</strong>ess leaders meet<strong>in</strong>g <strong>in</strong> Gujarat <strong>in</strong> the presence<br />
of PM Modi and his visit<strong>in</strong>g Japanese counterpart Sh<strong>in</strong>zo<br />
Abe, Suzuki’s chairman Osamu Suzuki stated that “For the<br />
last 35 years, we have been work<strong>in</strong>g towards “Make <strong>in</strong> <strong>India</strong><br />
with you all”.<br />
Maruti Suzuki has tied up with Toshiba and Denso <strong>in</strong><br />
April 2017 to manufacture lithium ion batteries to power<br />
electric vehicles <strong>in</strong> Gujarat entail<strong>in</strong>g <strong>in</strong>vestments of $180<br />
million or 20 billion yen. It will also make electric cars at its<br />
Gujarat facility for the <strong>India</strong>n and global market.<br />
Other global auto giants, too, are scal<strong>in</strong>g up their<br />
presence <strong>in</strong> the country. South Korea’s auto giant Hyundai<br />
Motor Co is consider<strong>in</strong>g a third auto plant <strong>in</strong> <strong>India</strong> after<br />
PM Modi’s visit to that country to seek FDI to boost local<br />
production. Mercedes Benz is doubl<strong>in</strong>g its assembly<br />
capacity to 20,000 units. Ford has already built its second<br />
plant <strong>in</strong> Gujarat and has recently announced a tie-up with<br />
domestic major Mah<strong>in</strong>dra & Mah<strong>in</strong>dra for a strategic alliance<br />
to produce electric and connected vehicles and distribution<br />
<strong>in</strong> the <strong>India</strong>n and global market.<br />
US <strong>in</strong>vestments <strong>in</strong> <strong>India</strong><br />
Scarcely a day passes without visits by CEOs and other top<br />
management of auto and tech giants from the US, who<br />
10<br />
INVEST IN INDIA<br />
11<br />
INVEST IN INDIA
Foreign Direct <strong>Invest</strong>ment<br />
The s<strong>in</strong>gle biggest bet<br />
<strong>in</strong> the e-commerce<br />
space was taken by<br />
the Japanese <strong>in</strong>vestor<br />
Softbank, which<br />
announced a $2.5 billion<br />
<strong>in</strong>vestment <strong>in</strong> FlipKart.<br />
Left: Masayoshi Son,<br />
CEO, SoftBank<br />
admit that <strong>India</strong> is <strong>in</strong>creas<strong>in</strong>gly vital to their global plans.<br />
Companies such as GE have committed $2.6 billion to<br />
supply <strong>India</strong>n Railways with diesel locomotives from its<br />
factory <strong>in</strong> Bihar over a 10-year period. The first ‘made <strong>in</strong><br />
<strong>India</strong>’ locomotive is scheduled to roll out from its facility<br />
<strong>in</strong> October <strong>2018</strong>. The US giant had earlier designed and<br />
manufactured medical diagnostic equipment <strong>in</strong> <strong>India</strong><br />
such as the low-cost electrocardiogram and ultrasound<br />
mach<strong>in</strong>es for use <strong>in</strong> other emerg<strong>in</strong>g markets.<br />
US <strong>in</strong>vestments <strong>in</strong>flows <strong>in</strong>deed are at an <strong>in</strong>flection<br />
po<strong>in</strong>t. They will grow manifold with an improvement <strong>in</strong><br />
<strong>India</strong>’s bus<strong>in</strong>ess environment. Accord<strong>in</strong>g to DIPP, equity<br />
<strong>in</strong>flows from the US amounted to $2.4 billion <strong>in</strong> 2016-17,<br />
with cumulative <strong>in</strong>vestments from April 2000 to September<br />
2017 pegged at $21.6 billion. Accord<strong>in</strong>g to the US-<strong>India</strong><br />
Bus<strong>in</strong>ess Council, a chamber of top American corporations,<br />
at least 52-member companies committed to <strong>in</strong>vest<strong>in</strong>g<br />
$27 billion <strong>in</strong> 2016-17. The US is also contribut<strong>in</strong>g <strong>in</strong> a big<br />
way to <strong>India</strong>’s energy security by supply<strong>in</strong>g LNG from 2017<br />
onwards.<br />
The bullet tra<strong>in</strong> truly exemplifies Make <strong>in</strong> <strong>India</strong> as the<br />
country’s construction sector’s capability will be boosted by<br />
exposure to the latest technology. The open<strong>in</strong>g of a High-<br />
Speed Rail Tra<strong>in</strong><strong>in</strong>g Institute at Vadodara by 2020 will help<br />
<strong>in</strong> capacity build<strong>in</strong>g.<br />
FDI <strong>in</strong> services<br />
Beyond manufactur<strong>in</strong>g, the bulk of the FDI equity <strong>in</strong>flows<br />
from strategic <strong>in</strong>vestors dur<strong>in</strong>g the last three years have<br />
gone <strong>in</strong>to the services, especially those that have been<br />
opened up with liberal FDI sectoral caps like e-commerce<br />
start-ups and retail, especially food. Recently, the s<strong>in</strong>gle<br />
biggest bet <strong>in</strong> the e-commerce space was taken by the<br />
Japanese <strong>in</strong>vestor Softbank, which announced a $2.5<br />
billion <strong>in</strong>vestment <strong>in</strong> FlipKart. E-commerce start-ups are<br />
penetrat<strong>in</strong>g tier II and III towns and help<strong>in</strong>g to br<strong>in</strong>g handicraft<br />
sellers, small enterprises <strong>in</strong>to the formal economy.<br />
US mega retailer Amazon has made a commitment<br />
of $5 billion to secure leadership <strong>in</strong> the e-commerce<br />
space. In July 2017, the <strong>India</strong>n government gave a nod<br />
to Amazon to open brick and mortar stores to sell food<br />
products. This is the first FDI proposal for sett<strong>in</strong>g up<br />
‘food only’ retail outlets. Amazon proposes to <strong>in</strong>vest $515<br />
million to take a leadership position <strong>in</strong> the world’s third<br />
largest grocery market, which could be a game changer <strong>in</strong><br />
br<strong>in</strong>g<strong>in</strong>g about a farm to fork revolution by br<strong>in</strong>g<strong>in</strong>g <strong>in</strong> cold<br />
cha<strong>in</strong> technology and better prices for farmers.<br />
Massive <strong>in</strong>vestments are flow<strong>in</strong>g <strong>in</strong>to diverse areas<br />
such as f<strong>in</strong>ancial and non-f<strong>in</strong>ancial services, telecom, retail<br />
trad<strong>in</strong>g, computer hardware and software, construction,<br />
hotels and tourism, consultancy, agricultural services,<br />
education, ports and airport <strong>in</strong>frastructure. In 2016-17,<br />
these accounted for 62 per cent of foreign equity <strong>in</strong>flows<br />
<strong>in</strong>to the country. Much of this buoyancy <strong>in</strong> FDI equity <strong>in</strong>flows<br />
is attributable to reforms <strong>in</strong> the policy space. Dur<strong>in</strong>g the<br />
last three years, 21 areas <strong>in</strong>clud<strong>in</strong>g services cover<strong>in</strong>g 87<br />
areas of FDI policy have undergone reform, accord<strong>in</strong>g to the<br />
official Economic Survey.<br />
The surge <strong>in</strong> FDI <strong>in</strong>flows def<strong>in</strong>itely adds to the growth<br />
momentum. On July 1, 2017 the government unveiled a<br />
major economic reform, the Goods and Services Tax, which<br />
unifies its vast domestic economy and allows seamless<br />
movement of goods and services all over the country. GST<br />
<strong>in</strong> turn is bound to boost the country’s rapid expansion.<br />
<strong>India</strong> has one of the most liberal FDI regimes, and is<br />
see<strong>in</strong>g heightened foreign <strong>in</strong>vestor <strong>in</strong>terest to transform<br />
the <strong>India</strong>n economy. Us<strong>in</strong>g latest technologies and models<br />
that are the best suited for the country, FDI is significantly<br />
augment<strong>in</strong>g the quality of growth by br<strong>in</strong>g<strong>in</strong>g <strong>in</strong> capital <strong>in</strong><br />
sectors that are key at this stage of <strong>India</strong>’s growth story. <br />
12<br />
INVEST IN INDIA
PRACTIONERS PERSPECTIVE<br />
Secretary, Department of Industrial Policy and Promotion<br />
INDIA<br />
The long-term bet<br />
of global bus<strong>in</strong>esses<br />
The government has launched a series of reforms to boost the Foreign Direct<br />
<strong>Invest</strong>ment (FDI) <strong>in</strong>to <strong>India</strong>, with Department of Industrial Policy and Promotion<br />
(DIPP) play<strong>in</strong>g a pivotal role. Led by the Hon. Prime M<strong>in</strong>ister’s <strong>in</strong>itiative to<br />
reform, perform and transform, records rapidly be<strong>in</strong>g set <strong>in</strong> FDI <strong>in</strong>to the<br />
country. Under the stewardship of Mr. Ramesh Abhishek, DIPP has taken<br />
enormous strides to boost <strong>in</strong>vestment. In an <strong>in</strong>terview to <strong>Invest</strong> <strong>in</strong> <strong>India</strong>, he<br />
expla<strong>in</strong>s he the achievements <strong>in</strong> the last year, argues why <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>India</strong> is a<br />
great idea for global majors and discusses his perspective for future. Excerpts:<br />
2017 has been an excit<strong>in</strong>g year for <strong>India</strong>. Look<strong>in</strong>g back,<br />
what would you say are the top achievements for DIPP<br />
<strong>in</strong> the field of FDI?<br />
The FDI <strong>in</strong>flows reached a record high of $60.1 billion <strong>in</strong><br />
2016-17. This was around $5 billion more than the record<br />
<strong>in</strong> 2015-16. The uptrend cont<strong>in</strong>ues dur<strong>in</strong>g this f<strong>in</strong>ancial year<br />
as well, which could be another record year, <strong>in</strong>vestments<br />
hav<strong>in</strong>g reached $33.8 billion already <strong>in</strong> the April to<br />
September period.<br />
Another important facet is <strong>India</strong> jump<strong>in</strong>g 30 ranks <strong>in</strong><br />
World Bank’s Ease of Do<strong>in</strong>g Bus<strong>in</strong>ess report this year. It<br />
is a real breakthrough <strong>in</strong> terms of ease of do<strong>in</strong>g bus<strong>in</strong>ess<br />
<strong>in</strong> <strong>India</strong>. The message is clear – reforms are be<strong>in</strong>g felt<br />
on the ground. The recognition by the World Bank is the<br />
ultimate assurance for the <strong>in</strong>vestor. We are also be<strong>in</strong>g<br />
globally recognized for these improvements <strong>in</strong> other<br />
<strong>in</strong>dices such as global competitiveness <strong>in</strong>dex, logistics<br />
performance <strong>in</strong>dex etc. This sends a huge message to the<br />
<strong>in</strong>vestor community.<br />
In the last two years, the rank<strong>in</strong>g of states on ease<br />
of do<strong>in</strong>g bus<strong>in</strong>ess has created a huge momentum <strong>in</strong> the<br />
state governments <strong>in</strong> the spirit of competitive federalism.<br />
More than 14,000 policy and adm<strong>in</strong>istrative <strong>in</strong>terventions<br />
have been carried out under the Bus<strong>in</strong>ess reform action<br />
plan. All the states are work<strong>in</strong>g very hard to improve their<br />
bus<strong>in</strong>ess environment and of course no one wants to be<br />
seen <strong>in</strong> poor light <strong>in</strong> a nationwide rank<strong>in</strong>g. They have hired<br />
experts to help them with those reforms. I congratulate<br />
the entire team of officers and staff and the stakeholders<br />
who have worked very hard <strong>in</strong> the last two years on do<strong>in</strong>g<br />
these reforms.<br />
It is well known that <strong>India</strong> is traditionally strong <strong>in</strong><br />
services and certa<strong>in</strong> manufactur<strong>in</strong>g sectors such as<br />
automobiles. In addition to these, are there new sectors<br />
where you see activity?<br />
<strong>Invest</strong>ors have shown great <strong>in</strong>terest <strong>in</strong> many sunrise<br />
sectors such as renewable energy, aerospace and<br />
defence, food process<strong>in</strong>g, <strong>in</strong>frastructure and electronic<br />
manufactur<strong>in</strong>g. A case <strong>in</strong> po<strong>in</strong>t is Defence. Defence has<br />
been opened up, and Make <strong>in</strong> <strong>India</strong> too gives preference<br />
Ramesh Abhishek<br />
Secretary, DIPP<br />
to the sector and domestic manufactur<strong>in</strong>g. Increas<strong>in</strong>g FDI<br />
<strong>in</strong> defence will reverse the trend of <strong>India</strong>’s dependence on<br />
defence equipment imports.<br />
Infrastructure is another sector where we are actively<br />
seek<strong>in</strong>g <strong>in</strong>vestments. <strong>India</strong> has established itself as a<br />
successful dest<strong>in</strong>ation for PPP <strong>in</strong>vestment <strong>in</strong> roads. Toll<strong>in</strong>g<br />
of road assets has matured and is well accepted <strong>in</strong> the<br />
country. Foreign <strong>in</strong>vestors <strong>in</strong>clud<strong>in</strong>g global pension funds<br />
have ev<strong>in</strong>ced keen <strong>in</strong>terest <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> the roads sector <strong>in</strong><br />
<strong>India</strong> under the new TOT model that is be<strong>in</strong>g pioneered. Go<strong>in</strong>g<br />
forward, we expect double digit growth to cont<strong>in</strong>ue <strong>in</strong> the<br />
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INVEST IN INDIA<br />
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INVEST IN INDIA
Secretary, Department of Industrial Policy and Promotion<br />
road freight segment as well as doubl<strong>in</strong>g of passenger car<br />
market by 2020. These will boost toll revenues on national<br />
highways. In electronics too, manufactur<strong>in</strong>g is on the rise.<br />
More than 100 mobile manufactur<strong>in</strong>g factories have come<br />
<strong>in</strong> <strong>India</strong> and the country is becom<strong>in</strong>g a big hub of electronics<br />
and mobile manufactur<strong>in</strong>g. Phased manufactur<strong>in</strong>g policy<br />
and correct<strong>in</strong>g <strong>in</strong>verted duty structures <strong>in</strong> electronics has<br />
greatly benefited domestic manufactur<strong>in</strong>g.<br />
More jobs for <strong>India</strong>’s emerg<strong>in</strong>g workforce is a key<br />
topic of discourse. What is the department’s th<strong>in</strong>k<strong>in</strong>g <strong>in</strong><br />
this regard?<br />
We are target<strong>in</strong>g employment led growth by focus<strong>in</strong>g on<br />
labor-<strong>in</strong>tensive sectors such as food process<strong>in</strong>g, tourism<br />
and textiles, all of which have potential to create a lot<br />
of jobs. Among the sector specific <strong>in</strong>itiatives <strong>in</strong> 2017<br />
this regard were Textiles <strong>India</strong> 2017, World Food <strong>India</strong><br />
110 <strong>in</strong> 2017. With<strong>in</strong> a short span of just two years, <strong>Invest</strong><br />
<strong>India</strong> is facilitat<strong>in</strong>g over $83 billion of FDI projects, account<strong>in</strong>g<br />
for over 7 lacs of direct employment, and has actualized<br />
over $7.4 billion of <strong>in</strong>vestments that have created close<br />
to a lac direct jobs on the ground. Today, <strong>Invest</strong> <strong>India</strong> is<br />
among the most awarded <strong>Invest</strong>ment Promotion Agencies<br />
(IPA) <strong>in</strong>clud<strong>in</strong>g UNCTAD’s award of be<strong>in</strong>g the #1 IPA <strong>in</strong> the<br />
World. In future, <strong>Invest</strong> <strong>India</strong> will play an even greater role<br />
<strong>in</strong> catalys<strong>in</strong>g <strong>in</strong>vestments toward our national mission to<br />
boost <strong>in</strong>vestments and generate ga<strong>in</strong>ful employment for<br />
the emerg<strong>in</strong>g workforce.<br />
Look<strong>in</strong>g ahead, where to see the greatest opportunities<br />
<strong>in</strong> <strong>2018</strong>?<br />
As part of Hon. Prime M<strong>in</strong>ister’s call to reform-performtransform,<br />
a series of reforms have been undertaken. As<br />
a result of the new m<strong>in</strong>dset <strong>in</strong> the government, we are<br />
<strong>Invest</strong> <strong>India</strong> is facilitat<strong>in</strong>g over $83 billion of FDI<br />
projects, account<strong>in</strong>g for over 7 lacs of direct employment,<br />
and has actualized over $7.4 billion of <strong>in</strong>vestments<br />
that have created close to a lac direct jobs on the ground<br />
2017 and Paryatan Parv. The government is bett<strong>in</strong>g<br />
big on manufactur<strong>in</strong>g through ‘Make <strong>in</strong> <strong>India</strong>’ to create<br />
millions of jobs that the country needs, lift <strong>in</strong>comes and<br />
eradicate poverty. At the recent ‘World Food <strong>India</strong> 2017:<br />
Transform<strong>in</strong>g the Food Economy’, 50 MoUs were signed<br />
worth $11.25 billion of <strong>in</strong>vestment <strong>in</strong> the sector. <strong>India</strong>’s<br />
manufactur<strong>in</strong>g Purchase Manager’s Index hit the 5-year<br />
high <strong>in</strong> December 2017.<br />
<strong>Invest</strong> <strong>India</strong> is a unique experiment. How do you view<br />
the progress made by <strong>Invest</strong> <strong>India</strong> <strong>in</strong> attract<strong>in</strong>g record<br />
levels of FDI?<br />
With the best talent from the corporate world and with an<br />
average age of 29, <strong>Invest</strong> <strong>India</strong> is a unique start-up of the<br />
government and embodies the spirit of New <strong>India</strong>. <strong>Invest</strong><br />
<strong>India</strong> is a one stop shop for foreign <strong>in</strong>vestors. It has grown<br />
from less than a dozen-member team <strong>in</strong> 2015 to a vibrant<br />
already witness<strong>in</strong>g visible and dramatic outcomes <strong>in</strong><br />
performance.<br />
Though we have broken <strong>in</strong>to the top 100 ranks <strong>in</strong><br />
World Bank’s EODB <strong>in</strong>dex, the Hon. Prime M<strong>in</strong>ister has said<br />
that we want to move much higher <strong>in</strong> the ranks. We are<br />
determ<strong>in</strong>ed to add further momentum to this effort and<br />
achieve our vision.<br />
<strong>India</strong> is one of the most open economies <strong>in</strong> terms<br />
of sectors that are open for foreign capital. Recently,<br />
we have also opened up major sectors such as defence<br />
manufactur<strong>in</strong>g and food retail. The Foreign <strong>Invest</strong>ment<br />
Promotion Board was abolished <strong>in</strong> May 2017. The impact<br />
for this far-reach<strong>in</strong>g reform is that more than 90 per cent of<br />
FDI proposals are now under the automatic route. Marry<strong>in</strong>g<br />
openness to bus<strong>in</strong>ess with the ease of do<strong>in</strong>g bus<strong>in</strong>ess is<br />
bound to make corporations figure not if they want to<br />
<strong>in</strong>vest <strong>in</strong> <strong>India</strong> but how. <br />
16<br />
INVEST IN INDIA
INDUSTRY SPEAK<br />
The world is undergo<strong>in</strong>g<br />
an explosion of <strong>in</strong>novation<br />
and we must ride it,<br />
domestically and globally<br />
Anand Mah<strong>in</strong>dra<br />
Chairman,<br />
Mah<strong>in</strong>dra Group<br />
With global <strong>in</strong>vestment pour<strong>in</strong>g <strong>in</strong>,<br />
<strong>India</strong> is firmly on a path to prosperity<br />
and development. <strong>India</strong>’s economy<br />
is expected to be the third largest <strong>in</strong><br />
2032, accord<strong>in</strong>g to the World Economic<br />
League Table projections. Anand Mah<strong>in</strong>dra, chairman,<br />
Mah<strong>in</strong>dra Group, who is also on the board of <strong>Invest</strong> <strong>India</strong>,<br />
has been both an eager participant and observant viewer<br />
of how <strong>India</strong> is open<strong>in</strong>g up to the world. In an exclusive<br />
<strong>in</strong>terview with <strong>Invest</strong> <strong>in</strong> <strong>India</strong>, he expla<strong>in</strong>s how <strong>India</strong> needs<br />
to aggressively pursue ideas wherever they orig<strong>in</strong>ate<br />
that provide solutions to her issues, say<strong>in</strong>g the world is<br />
undergo<strong>in</strong>g an explosion of <strong>in</strong>novation and we must ride it,<br />
domestically and globally. Excerpts:<br />
The government has set a fast pace of growth for the<br />
<strong>India</strong>n economy with multiple reforms. How do you see<br />
the economic outlook <strong>in</strong> the near term?<br />
<strong>India</strong> has been one of brightest spots <strong>in</strong> a world that was<br />
starved of growth. But there has been a little twist to this<br />
narrative lately. <strong>India</strong>’s growth has softened <strong>in</strong> the short<br />
term with several notable transformational reforms (GST,<br />
Monetary Policy Committee, Insolvency & Bankruptcy<br />
Code) which obviously will have a huge pay-off <strong>in</strong> the<br />
medium-to-long term.<br />
So, while global growth has rebounded to its fastest<br />
pace <strong>in</strong> the last five years, <strong>India</strong>’s growth has ebbed as this<br />
huge economy moves to a ‘new equilibrium’. But, if we<br />
shift the gaze to the future, growth is likely to bounce back<br />
sharply as formalisation of the economy gathers pace,<br />
the transformational reforms start yield<strong>in</strong>g the desired<br />
dividends and some of the older bus<strong>in</strong>ess models give way<br />
to newer, more robust ones.<br />
In fact, <strong>India</strong>’s economy is expected to overtake<br />
that of Brita<strong>in</strong> and France to become the fifth largest<br />
<strong>in</strong> the world <strong>in</strong> dollar terms <strong>in</strong> <strong>2018</strong>, and third largest <strong>in</strong><br />
2032, accord<strong>in</strong>g to the World Economic League Table<br />
projections! In the <strong>in</strong>terim, however, growth <strong>in</strong> <strong>India</strong><br />
cont<strong>in</strong>ues to “bubble under”.<br />
What would you say are the areas <strong>in</strong> which <strong>India</strong> would<br />
most benefit from FDI?<br />
<strong>India</strong> has, by and large, opened most sectors to FDI. <strong>India</strong>’s<br />
FDI levels have been robust lately. In FY16, FDI was $55<br />
billion and $60 billion <strong>in</strong> FY17. Allow<strong>in</strong>g FDI <strong>in</strong> multi-brand<br />
retail or eas<strong>in</strong>g rules for food-retail could still <strong>in</strong>duce big<br />
dollops of money. We need to work more on enhanc<strong>in</strong>g<br />
the absorptive capacity (both technology and capital)<br />
of the economy. Further progress on Ease of Do<strong>in</strong>g<br />
Bus<strong>in</strong>ess metric, procedural simplifications and strategic<br />
policymak<strong>in</strong>g on improv<strong>in</strong>g <strong>India</strong>’s competitiveness; policies<br />
to improve <strong>India</strong>’s logistical capacity and connectivity will<br />
deepen the economy and <strong>in</strong>crease the pull for foreign<br />
flows even more. It will also make <strong>India</strong> ready for structural<br />
changes <strong>in</strong> global production.<br />
I would also submit that FDI does not, and should<br />
not mean f<strong>in</strong>ancial <strong>in</strong>vestment alone. It also stands for<br />
Foreign Direct Ideas. We should aggressively pursue ideas<br />
wherever they orig<strong>in</strong>ate that provide solutions to our<br />
issues. The world is undergo<strong>in</strong>g an explosion of <strong>in</strong>novation<br />
and we must ride it, domestically and globally.<br />
How crucial is it to project a more positive image of <strong>India</strong><br />
to reflect the chang<strong>in</strong>g realities at global platforms such<br />
as <strong>Davos</strong>?<br />
<strong>India</strong>, as mentioned earlier, is one of the sh<strong>in</strong><strong>in</strong>g stars of<br />
the global economy. It is poised to become the third largest<br />
<strong>in</strong> US Dollar terms by 2032. But more importantly, <strong>India</strong>,<br />
accord<strong>in</strong>g to me, is the laboratory of social and economic<br />
development policies for the world right now. The way<br />
we tackle development, social and f<strong>in</strong>ancial <strong>in</strong>clusion,<br />
employment creation and soft <strong>in</strong>frastructure will be<br />
<strong>in</strong>structive for large parts of the develop<strong>in</strong>g and developed<br />
world. We can be the pioneers of a new growth paradigm<br />
which leverages future technology, government policies<br />
and <strong>in</strong>clusive growth and this can offer a new template to<br />
the world <strong>in</strong> tackl<strong>in</strong>g several challenges of global economy<br />
and polity of today.<br />
So, it’s not just an “image” we need to project. We need<br />
to showcase ourselves as a society and an economy that<br />
is tackl<strong>in</strong>g the world’s greatest problems head-on, with an<br />
enviable measure of success, as a country that could be a<br />
beacon for the develop<strong>in</strong>g world.<br />
With <strong>India</strong> hav<strong>in</strong>g improved it’s rank significantly <strong>in</strong> global<br />
bus<strong>in</strong>ess <strong>in</strong>dices, <strong>in</strong>clud<strong>in</strong>g Ease of Do<strong>in</strong>g Bus<strong>in</strong>ess, do you<br />
expect a faster rate of <strong>in</strong>vestment <strong>in</strong> <strong>India</strong>?<br />
The Ease of Do<strong>in</strong>g Bus<strong>in</strong>ess rank<strong>in</strong>g is only one of the<br />
factors taken <strong>in</strong>to consideration when <strong>in</strong>vest<strong>in</strong>g. While the<br />
30 notch jump from 130 to 100 certa<strong>in</strong>ly helps, other factors<br />
will also play a crucial role. Moody upgrad<strong>in</strong>g <strong>India</strong>’s rank<strong>in</strong>g<br />
for the first time <strong>in</strong> 14 years, the bank recapitalisation<br />
plan, which will de-clog the bank<strong>in</strong>g system, a crackdown<br />
on NPAs, revival of the credit cycle and transmission of<br />
monetary policy – all these will have a positive impact.<br />
We also see a significant growth momentum <strong>in</strong> the<br />
advanced economies and the hike <strong>in</strong> rates by the Fed are<br />
an affirmation of durable growth <strong>in</strong> the world’s largest<br />
economy. Faster US ad global growth will also impart a<br />
positive momentum through the export l<strong>in</strong>kages. Thus,<br />
with domestic as well as global growth revival, capacity<br />
utilisation rate is expected to improve and that will provide<br />
the spark for the next <strong>in</strong>vestment cycle. The important<br />
th<strong>in</strong>g is that all our reforms should translate <strong>in</strong>to action<br />
simultaneously on all fronts. That would speak louder than<br />
statistics or words.<br />
As US looks <strong>in</strong>ward to its own economy, what are the<br />
opportunities that <strong>India</strong> can cash <strong>in</strong> on?<br />
You can look for the cloud, or you can look for the silver<br />
18<br />
INVEST IN INDIA<br />
19<br />
INVEST IN INDIA
Industry Speak<br />
Tech Mah<strong>in</strong>dra delivers Connected Experiences by harness<strong>in</strong>g the power of AI and Might of Convergence!<br />
l<strong>in</strong><strong>in</strong>g. I believe there are silver l<strong>in</strong><strong>in</strong>gs, whichever way<br />
you look at it. We, at the Mah<strong>in</strong>dra group, believe that a<br />
stronger American economy is good news for us. Amidst<br />
grow<strong>in</strong>g protectionism across the world, it is the strength of<br />
bilateral partnerships, now to be bolstered by the grow<strong>in</strong>g<br />
relationship with the US. <strong>India</strong> and US have shared <strong>in</strong>terests<br />
and are natural partners as the largest democracies and<br />
vibrant economies. There is a deeper level of engagement<br />
through creation of a fair and reciprocal trad<strong>in</strong>g relationship.<br />
<strong>India</strong> can be a partner of growth for America with<br />
its manufactur<strong>in</strong>g as well as services prowess that<br />
transcends boundaries with its frugal 24/7 cloud enabled<br />
capabilities along with lower wage costs. These can help<br />
re<strong>in</strong> <strong>in</strong> costs for US bus<strong>in</strong>esses and make them more<br />
competitive. Moreover, <strong>India</strong> rema<strong>in</strong>s the fastest grow<strong>in</strong>g<br />
economy of its size <strong>in</strong> the world offer<strong>in</strong>g a large grow<strong>in</strong>g<br />
domestic market for goods and services along with shared<br />
respect for democracy and ‘<strong>in</strong>clusive’ growth.<br />
There is a lot of controversy over current th<strong>in</strong>k<strong>in</strong>g <strong>in</strong><br />
the US about amend<strong>in</strong>g work visa policies. However, there<br />
is an opportunity there as well. If a reverse bra<strong>in</strong> dra<strong>in</strong> is<br />
forced upon us, surely it is up to us to use these wonderful<br />
resources <strong>in</strong>novatively and productively, and create<br />
conditions that enable them to contribute to <strong>India</strong>’s rise.<br />
How do you view the recent reforms by the government?<br />
Which ones are likely to benefit the country most?<br />
Reforms is a journey and not an end <strong>in</strong> itself. In an economy<br />
as large and diverse as <strong>in</strong> <strong>India</strong>, there is huge scope for<br />
cont<strong>in</strong>uation of the reforms momentum to have the right<br />
balance between the state, the market and the private<br />
sector. There is a cry<strong>in</strong>g need to enhance productivity. <strong>India</strong><br />
has <strong>in</strong>troduced a spate of reforms recently to formalise<br />
the economy with measures such as Demonetisation, the<br />
Bankruptcy Code, GST and RERA, which are essential for<br />
a structurally sound economy. Not to forget the measures<br />
on F<strong>in</strong>ancial <strong>in</strong>clusion,<br />
Ease of Do<strong>in</strong>g Bus<strong>in</strong>ess<br />
etc. Then there are factor<br />
reforms like labour where<br />
codification of the labour<br />
laws will be a big positive.<br />
All of which are useful <strong>in</strong><br />
their own way and are<br />
br<strong>in</strong>g<strong>in</strong>g <strong>in</strong> efficiencies <strong>in</strong><br />
the overall structure of<br />
the <strong>in</strong>dustry. So, it isn’t<br />
that one is better than<br />
the other but the fact that<br />
all are be<strong>in</strong>g implemented<br />
by the government <strong>in</strong><br />
tandem makes the reforms<br />
process stronger.<br />
What are the most urgent reforms you would like to see<br />
<strong>in</strong> <strong>India</strong> to ma<strong>in</strong>ta<strong>in</strong> growth?<br />
Over the last few years we’ve had a host of reforms<br />
mentioned above, which will greatly benefit the economy<br />
<strong>in</strong> the com<strong>in</strong>g years. In the near term, it is crucial to revive<br />
the broken credit cycle. We need to adequately capitalise<br />
the bank<strong>in</strong>g system and make it more robust. We have<br />
to deepen corporate bond market to cater to long term<br />
f<strong>in</strong>anc<strong>in</strong>g needs of this huge economy. There is also scope<br />
for privatization, build<strong>in</strong>g state capacity and productivity<br />
boost<strong>in</strong>g reforms.<br />
However, the key challenge fac<strong>in</strong>g policy makers <strong>in</strong> <strong>India</strong><br />
today is that of employment creation for the ‘demographic<br />
dividend’. With<strong>in</strong> this, we need to tackle issues such as<br />
under-employment, low-wage employment and therefore,<br />
the creation of well-paid jobs, rather than address<strong>in</strong>g mere<br />
unemployment. We will need huge reforms <strong>in</strong> education<br />
and skill<strong>in</strong>g.<br />
You have made a number of unusual <strong>in</strong>vestments of late,<br />
<strong>in</strong>clud<strong>in</strong>g <strong>in</strong> some niche sectors. How do you justify the<br />
need for <strong>in</strong>vestment <strong>in</strong> SMEs and start-ups, <strong>in</strong>clud<strong>in</strong>g the<br />
need for holistic, <strong>in</strong>clusive and green <strong>in</strong>vestments?<br />
With<strong>in</strong> manufactur<strong>in</strong>g, small firms employ<strong>in</strong>g less than 20<br />
workers each accounted for over 72% of manufactur<strong>in</strong>g<br />
employment but only 12% of manufactur<strong>in</strong>g output. Thus,<br />
it is imperative that the right policy framework, capital and<br />
technology are used to not only leverage the potential of the<br />
segment for employment creation but also for enhanc<strong>in</strong>g<br />
its contribution to the gross value added (GVA) of the<br />
economy. For SMEs, we need to move away from giv<strong>in</strong>g<br />
<strong>in</strong>centives to creat<strong>in</strong>g an enabl<strong>in</strong>g bus<strong>in</strong>ess environment.<br />
SMEs are at the heart of l<strong>in</strong>k<strong>in</strong>g to global value cha<strong>in</strong>s as<br />
they have been for Southeast Asian countries and Ch<strong>in</strong>a.<br />
SMEs could attract all efficiency-seek<strong>in</strong>g FDI from MNCs,<br />
mak<strong>in</strong>g <strong>India</strong> a hub for GVCs.<br />
As for green <strong>in</strong>vestments, do we really have any option<br />
but to pursue susta<strong>in</strong>ability, if we want to preserve our<br />
livelihoods and bequeath a liveable planet to our children<br />
and grandchildren? I see green growth as the bus<strong>in</strong>ess<br />
opportunity of the century - a chance to do well and do<br />
good at the same time.<br />
How do you view the role and <strong>in</strong>vestment <strong>in</strong> technology<br />
and how it could impact <strong>India</strong>’s development?<br />
Technology is the future and it is upon us whether we<br />
want it or not. The challenge is to use it strategically,<br />
wisely and well.<br />
The importance of <strong>in</strong>formation technology is a nobra<strong>in</strong>er.<br />
The advantages of <strong>in</strong>vestment <strong>in</strong> technology is<br />
manifested through job creation, productivity enhancement<br />
of labour and capital, higher efficiencies, creation of<br />
new <strong>in</strong>dustries, bus<strong>in</strong>ess <strong>in</strong>novation and workforce<br />
transformation.<br />
For bus<strong>in</strong>esses, technological advances can improve<br />
operations and lower the cost of do<strong>in</strong>g bus<strong>in</strong>ess. Physical<br />
barriers to communication can be reduced and stronger,<br />
more efficient supply cha<strong>in</strong>s can be built.<br />
<strong>India</strong> can also leverage technology <strong>in</strong> enhanc<strong>in</strong>g soft<br />
<strong>in</strong>frastructure (education & health). It can be a useful<br />
tool <strong>in</strong> service delivery for health, education and general<br />
public services.<br />
I also see technology as play<strong>in</strong>g a large part <strong>in</strong> tackl<strong>in</strong>g<br />
urbanisation and promot<strong>in</strong>g distributed growth <strong>in</strong> <strong>India</strong>.<br />
I can imag<strong>in</strong>e a scenario where 3D pr<strong>in</strong>t<strong>in</strong>g for example,<br />
converts every rural backyard <strong>in</strong>to a m<strong>in</strong>i factory, giv<strong>in</strong>g<br />
Make <strong>in</strong> <strong>India</strong> a new mean<strong>in</strong>g altogether.<br />
Dr. Pawan Goenka, Executive Director, M&M Ltd (centre) with other senior company officials<br />
at the launch of Mah<strong>in</strong>dra’s Connected Vehicles Technology Platform - DiGiSENSE<br />
<strong>India</strong> is already a middle-<strong>in</strong>come country. How soon do<br />
you see <strong>India</strong> mov<strong>in</strong>g up to the next level, and what steps<br />
will be needed?<br />
High <strong>in</strong>come countries have a GDP per capita <strong>in</strong>come of<br />
around $12,236. At roughly $1,800, <strong>India</strong> is way below of<br />
where it needs to be to be called a high-<strong>in</strong>come country.<br />
While countries like South Korea have transitioned from<br />
be<strong>in</strong>g a middle-<strong>in</strong>come country to high <strong>in</strong>come <strong>in</strong> just about<br />
two decades, typically, middle <strong>in</strong>come countries have<br />
taken half a century to make this transition.<br />
It is important for <strong>India</strong> to become rich before it<br />
becomes old. At this stage, the efficient use of technology<br />
is essential - merely allocat<strong>in</strong>g more capital and labour<br />
can only take <strong>India</strong> so far. Us<strong>in</strong>g technology, <strong>in</strong>dustries<br />
need to be made more efficient and this requires not<br />
just <strong>in</strong>novation but also a workforce that is skilled<br />
and knowledgeable. Thus, the emphasis should be<br />
on ramp<strong>in</strong>g up education. Additionally, <strong>India</strong> will need<br />
to <strong>in</strong>vest more <strong>in</strong> <strong>in</strong>frastructure especially advanced<br />
<strong>in</strong>frastructure like <strong>in</strong>formation and communication<br />
technology. Basically, <strong>India</strong> would need to <strong>in</strong>vest <strong>in</strong> the<br />
productivity-enhanc<strong>in</strong>g tr<strong>in</strong>ity of education, <strong>in</strong>novation,<br />
and <strong>in</strong>frastructure.<br />
But dur<strong>in</strong>g the transition, <strong>India</strong> must also be careful<br />
to not to repeat the mistakes that others have made i.e.<br />
‘’growth at any cost’ especially environment. It must<br />
also avoid becom<strong>in</strong>g vulnerable to <strong>in</strong>dicators affect<strong>in</strong>g<br />
macroeconomic stability—such as whether the country<br />
faces a bank<strong>in</strong>g or currency crisis, the extent of capital<br />
<strong>in</strong>flows other than foreign <strong>in</strong>vestment, and government<br />
debt as a share of GDP. <br />
20<br />
INVEST IN INDIA<br />
21<br />
INVEST IN INDIA
INDUSTRY SPEAK<br />
Putt<strong>in</strong>g<br />
INDIA<br />
First<br />
With 207 offices across 35<br />
countries, <strong>India</strong>’s largest<br />
and oldest commercial bank<br />
is play<strong>in</strong>g a significant role<br />
<strong>in</strong> attract<strong>in</strong>g FDI. It is sett<strong>in</strong>g<br />
up special country desks<br />
and handhold<strong>in</strong>g customers<br />
through the process.<br />
Rajnish Kumar, Chairman,<br />
SBI expla<strong>in</strong>s the myriad<br />
steps the bank is tak<strong>in</strong>g <strong>in</strong><br />
this regard. Excerpts:<br />
Rajnish Kumar<br />
Chairman, SBI<br />
As the 54th largest global bank,<br />
what role is SBI play<strong>in</strong>g <strong>in</strong> facilitat<strong>in</strong>g<br />
Foreign Direct <strong>Invest</strong>ment (FDI) and<br />
Foreign Portfolio <strong>Invest</strong>ment (FPI)<br />
<strong>in</strong>flows <strong>in</strong>to the country? Does SBI<br />
encourage FDI from such <strong>in</strong>vestors?<br />
Foreign Institutional <strong>Invest</strong>ors<br />
primarily require hand hold<strong>in</strong>g <strong>in</strong><br />
terms of understand<strong>in</strong>g and<br />
execut<strong>in</strong>g the regulatory<br />
requirements, gett<strong>in</strong>g <strong>in</strong>formation<br />
about the economy as well as<br />
various sectors and <strong>in</strong>dustries.<br />
To provide a local contact, SBI has<br />
over the years, built its presence <strong>in</strong> 35<br />
countries <strong>in</strong>clud<strong>in</strong>g all major economies<br />
of the world. We have designated seven<br />
of our foreign offices <strong>in</strong> Hong Kong,<br />
S<strong>in</strong>gapore, UK, US, Dubai, Mauritius and<br />
Canada, countries from where <strong>in</strong>bound<br />
<strong>in</strong>vestments have been historically high,<br />
for guid<strong>in</strong>g <strong>in</strong>stitutional clients who have<br />
shown <strong>in</strong>terest <strong>in</strong> <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>India</strong>. As<br />
<strong>in</strong>vestors from South Korea and Japan<br />
have shown a greater <strong>in</strong>terest <strong>in</strong> the<br />
<strong>India</strong>n Growth story, we have also set up<br />
a Korea Desk and a Japan Desk for hand<br />
hold<strong>in</strong>g of <strong>in</strong>stitutional clients from<br />
these countries.<br />
We have a dedicated FDI/FPI desk<br />
with<strong>in</strong> Global Markets, Mumbai which<br />
takes over from the Foreign F<strong>in</strong>ancial<br />
Institutions <strong>in</strong> these countries and<br />
guides the clients through the rest of the<br />
process, act<strong>in</strong>g as the s<strong>in</strong>gle po<strong>in</strong>t<br />
of contact.<br />
Global Markets provides FX and bond<br />
market liquidity to FPIs. We also cater to<br />
the forex conversion needs of large FDI/<br />
FPI clients by provid<strong>in</strong>g them standalone<br />
third-party forex conversion solutions at<br />
extremely competitive rates, ensur<strong>in</strong>g<br />
smooth execution of all their <strong>in</strong>structions.<br />
For other services required by FDI/<br />
FPI clients, we have a custodial arm,<br />
SBI-SG Global Securities Services Pvt. Ltd,<br />
<strong>in</strong> a jo<strong>in</strong>t venture with Société Générale<br />
Securities Services (SGSS). SBI-SG is<br />
a designated depository participant,<br />
authorized to grant registrations to FPIs,<br />
and provides custodian services to a<br />
number of FDI and Foreign VC (Venture<br />
Capital) clients.<br />
Other SBI Group companies viz.<br />
SBICap Securities, help FPIs to <strong>in</strong>vest <strong>in</strong><br />
<strong>India</strong>n Equity Market by provid<strong>in</strong>g them<br />
Equity Research and Brok<strong>in</strong>g services.<br />
SBICap Securities also provides Demat<br />
account and Escrow account facilities (as<br />
a trustee) to FDI clients.<br />
How has SBI played a key role <strong>in</strong> help<strong>in</strong>g<br />
<strong>India</strong> Inc’s FDI outflows or mergers and<br />
acquisitions overseas?<br />
We facilitate FDI outflows by provid<strong>in</strong>g<br />
competitive prices for forex conversion as<br />
well as various structured products for<br />
State Bank Bhavan, Mumbai<br />
hedg<strong>in</strong>g risks <strong>in</strong> both foreign exchange<br />
and <strong>in</strong>terest rate markets. We are<br />
active <strong>in</strong> the mergers and acquisitions<br />
space. We have been provid<strong>in</strong>g credit<br />
support to <strong>India</strong>n corporate houses<br />
for their overseas acquisitions.<br />
This credit support is extended by<br />
our overseas branches <strong>in</strong> all freely<br />
convertible currencies.<br />
Congratulations on becom<strong>in</strong>g<br />
Chairman of <strong>India</strong>’s Fortune 500 bank.<br />
What are your priorities from an<br />
<strong>in</strong>ternational bank<strong>in</strong>g perspective?<br />
Thank you very much. Initially our<br />
overseas expansion was driven by<br />
the magnitude of bilateral trade<br />
flows, NRI/PIO concentration and<br />
need for servic<strong>in</strong>g the <strong>in</strong>ternational<br />
f<strong>in</strong>ancial requirements of our<br />
domestic corporate clientele. We<br />
are now mov<strong>in</strong>g ahead to <strong>in</strong>crease<br />
our local bus<strong>in</strong>ess portfolio <strong>in</strong><br />
different geographies. We have set<br />
B Sriram<br />
MD (C & GB)<br />
up Syndication Desks <strong>in</strong> Hong Kong,<br />
United K<strong>in</strong>gdom, S<strong>in</strong>gapore, USA and<br />
UAE to tap the local bus<strong>in</strong>ess.<br />
We are also undertak<strong>in</strong>g network<br />
rationalization exercise of foreign<br />
offices across various geographies<br />
based on parameters such as bus<strong>in</strong>ess<br />
potential, profitability, regulatory<br />
requirements, contribution to bank’s<br />
balance sheet, return on equity and<br />
long-term viability.<br />
As far as overseas expansion is<br />
concerned, we are focus<strong>in</strong>g on ASEAN<br />
countries for expansion by way of<br />
strategic partnerships through both the<br />
organic and <strong>in</strong>organic route. We are<br />
strategiz<strong>in</strong>g our expansion plans and<br />
capital allocation based on expected<br />
Return on Equity (RoE) and Return on<br />
Assets (RoA) from different geographies.<br />
Our Nepal SBI Bank Ltd. bus<strong>in</strong>ess<br />
model has been successful and we<br />
are explor<strong>in</strong>g to replicate it <strong>in</strong> other<br />
SAARC countries.<br />
Of SBI’s considerable spread across the<br />
world, which regions or geographies<br />
have contributed the most to its<br />
balance sheet and profits?<br />
The International Bank<strong>in</strong>g Group’s<br />
contribution to the banks’ balance sheet<br />
as on 30 September 2017 was 11 per<br />
cent with major contribution from East<br />
Asia Region followed by UK, US and<br />
MEWANA (Middle East, West Asia, North<br />
Africa) region.<br />
30 per cent of the bank’s net profit<br />
is contributed by our <strong>in</strong>ternational<br />
operations. Major profit centres are UK,<br />
followed by MEWANA, East Asia and US.<br />
Tell us about your <strong>in</strong>ternational offices<br />
and subsidiaries overseas and how<br />
successful they are?<br />
Over the years, the <strong>in</strong>ternational<br />
operations of the bank have grown<br />
significantly with branches and<br />
subsidiaries both perform<strong>in</strong>g well.<br />
Our operations <strong>in</strong> the United K<strong>in</strong>gdom,<br />
S<strong>in</strong>gapore and Hong Kong have<br />
performed well and have contributed to<br />
the overall growth of the bank.<br />
Further, our two major subsidiaries<br />
Nepal SBI Bank Ltd. (NSBL) and<br />
SBI Mauritius Ltd. have also been<br />
perform<strong>in</strong>g well. The bank has launched<br />
digital bank<strong>in</strong>g outlets –sbiINTOUCH<br />
branches <strong>in</strong> Nepal, Mauritius and<br />
Maldives to provide an immersive<br />
bank<strong>in</strong>g experience to customers. NSBL<br />
has also adopted Jahars<strong>in</strong>g Pauwa<br />
village under its Digital Village <strong>in</strong>itiative<br />
to provide f<strong>in</strong>ancial literacy centres<br />
and other bank<strong>in</strong>g facilities to the<br />
2,200 villagers. <br />
22<br />
INVEST IN INDIA<br />
23<br />
INVEST IN INDIA
BEYOND BORDERS Switzerland<br />
Seven Decades of<br />
Friendship<br />
In <strong>2018</strong>, as Switzerland and <strong>India</strong> mark<br />
70 years of the Indo-Swiss Bilateral<br />
Friendship Treaty of 1948, relations<br />
between the two nations are only<br />
set to further grow and prosper. A<br />
Treaty of Friendship between <strong>India</strong><br />
and Switzerland was signed at New<br />
Delhi on August 14, 1948, one of the<br />
first such treaties to be signed by<br />
<strong>in</strong>dependent <strong>India</strong> and an important<br />
milestone <strong>in</strong> Indo-Swiss relations. The<br />
Treaty provided for the establishment of<br />
diplomatic missions between the two<br />
countries and missions were opened <strong>in</strong><br />
Berne and Delhi soon after. The Treaty of<br />
Friendship has been re<strong>in</strong>forced <strong>in</strong> recent<br />
decades by regular high-level visits.<br />
Partners <strong>in</strong> progress<br />
Switzerland<br />
at a Glance<br />
Location: Central Europe<br />
Official languages: German, French,<br />
Italian, Romansh<br />
Area: 41,285 km<br />
Population: 8.4 million<br />
GDP: $517 billion (39th largest<br />
economy) 2017 estimate<br />
GDP Per capita: $78,245<br />
(Global rank: 2)<br />
GDP - composition,<br />
by sector of orig<strong>in</strong>:<br />
Agriculture: 0.7% <strong>in</strong>dustry: 25.5%<br />
Services: 73.8% (2016 est.)<br />
HDI: 0.939 (Global rank: 2; 2015)<br />
Currency: Swiss franc (CHF)<br />
EODB rank: 33 (<strong>2018</strong>)<br />
Ma<strong>in</strong> <strong>in</strong>dustries: Mach<strong>in</strong>ery,<br />
chemicals, watches, precision<br />
<strong>in</strong>struments, tourism, bank<strong>in</strong>g,<br />
<strong>in</strong>surance, pharmaceuticals<br />
Credit Rat<strong>in</strong>g: AAA (S&P)<br />
Imports: $264.9 billion (2016 est.)<br />
Exports: $318.1 billion (2016 est.)<br />
Internet users as per cent of<br />
population: 89.4% (July 2016 est.)<br />
Swiss companies <strong>in</strong> <strong>India</strong>: 200,<br />
<strong>in</strong>clud<strong>in</strong>g Nestle, Novartis, ABB,<br />
Sch<strong>in</strong>dler, Faber, Geberit, Swatch,<br />
Victor<strong>in</strong>ox etc.<br />
SOURCES: EDA.ADMIN.CH, THE WORLD FACTBOOK<br />
24<br />
INVEST IN INDIA<br />
25<br />
INVEST IN INDIA
BEYOND BORDERS Switzerland<br />
Dear readers,<br />
I<br />
Connect<strong>in</strong>g<br />
M<strong>in</strong>ds<br />
and Inspir<strong>in</strong>g<br />
the Future<br />
am pleased that <strong>Invest</strong> <strong>India</strong>, a valuable partner of our<br />
network, is highlight<strong>in</strong>g Swiss-<strong>India</strong>n bilateral economic<br />
relations <strong>in</strong> the first issue of its magaz<strong>in</strong>e ‘<strong>Invest</strong> <strong>in</strong><br />
<strong>India</strong>’, that is be<strong>in</strong>g launched on the occasion of the World<br />
Economic Forum <strong>in</strong> <strong>Davos</strong>, Switzerland.<br />
In <strong>2018</strong>, as we commemorate the 70 th anniversary of<br />
the sign<strong>in</strong>g of the Swiss-<strong>India</strong>n Treaty of Friendship, one<br />
of the first of such treaties signed by <strong>in</strong>dependent <strong>India</strong>,<br />
we have many significant milestones to look back on and<br />
a well-founded confidence about our future together.<br />
Switzerland and <strong>India</strong> share a valuable, long-stand<strong>in</strong>g and<br />
dynamic relationship that is deeply rooted <strong>in</strong> our common<br />
democratic values. This close relationship is reflected <strong>in</strong> a<br />
large number of agreements and treaties and regular highrank<strong>in</strong>g<br />
visits between our countries - the visit to <strong>India</strong>, <strong>in</strong><br />
August 2017, by the President of the Swiss Confederation,<br />
Mrs. Doris Leuthard, be<strong>in</strong>g the most recent example.<br />
President Leuthard and her accompany<strong>in</strong>g official<br />
and bus<strong>in</strong>ess delegations were graciously received by<br />
Prime M<strong>in</strong>ister Mr. Narendra Modi and central government<br />
m<strong>in</strong>isters <strong>in</strong> charge of the f<strong>in</strong>ance, commerce and <strong>in</strong>dustry,<br />
power, coal and railways m<strong>in</strong>istries. In addition, there<br />
was a fruitful exchange of ideas between the Swiss and<br />
<strong>India</strong>n bus<strong>in</strong>ess communities on topics such as market<br />
opportunities, technological evolution, <strong>in</strong>novation, skills<br />
development, competitiveness and framework conditions.<br />
A Jo<strong>in</strong>t Declaration between the two Governments<br />
and two MoUs outl<strong>in</strong><strong>in</strong>g the cooperation <strong>in</strong> the railway<br />
sector were signed.<br />
In the last few decades, a remarkable number of 250<br />
Swiss companies, <strong>in</strong> the fields of eng<strong>in</strong>eer<strong>in</strong>g, manufactur<strong>in</strong>g,<br />
distribution and services, have been steadily enlarg<strong>in</strong>g their<br />
presence <strong>in</strong> <strong>India</strong>. Accord<strong>in</strong>g to the cumulative FDI data<br />
compiled by the <strong>India</strong>n M<strong>in</strong>istry of F<strong>in</strong>ance for the period<br />
between April 2000 and March 2017, Switzerland stood as<br />
the 11 th largest <strong>in</strong>vestor <strong>in</strong> <strong>India</strong>. On the other hand, <strong>India</strong> is<br />
Switzerland’s third largest trad<strong>in</strong>g partner <strong>in</strong> Asia, and its<br />
first <strong>in</strong> South Asia. While the rest of the world grew by a<br />
modest 3%, <strong>India</strong> registered a high growth rate of 7.1% <strong>in</strong><br />
the fiscal year 2016-17. <strong>India</strong>, one of the fastest grow<strong>in</strong>g<br />
economies, offers a plethora of bus<strong>in</strong>ess opportunities for<br />
Swiss companies. Without doubt, Swiss companies, with<br />
As Switzerland and<br />
<strong>India</strong> mark the 70 th<br />
anniversary of their<br />
friendship treaty, the<br />
two countries are<br />
further <strong>in</strong>tensify<strong>in</strong>g their<br />
bilateral relations<br />
their <strong>in</strong>novative m<strong>in</strong>d-set and future oriented vision, will<br />
cont<strong>in</strong>ue ventur<strong>in</strong>g <strong>in</strong>to <strong>India</strong>.<br />
The Swiss Bus<strong>in</strong>ess Hub <strong>India</strong> (SBHI) was set-up <strong>in</strong><br />
2001 <strong>in</strong> the Swiss Consulate <strong>in</strong> Mumbai and <strong>in</strong> the Swiss<br />
Embassy <strong>in</strong> New Delhi. The SBHI represents Switzerland<br />
Global Enterprise (S-GE), the official export and <strong>in</strong>vestment<br />
agency of the Swiss Government, mandated by the State<br />
Secretariat for Economic Affairs (SECO). Because of its<br />
official status, the SBHI is well-placed to support Swiss<br />
companies <strong>in</strong> expand<strong>in</strong>g and strengthen<strong>in</strong>g their bus<strong>in</strong>ess<br />
activities <strong>in</strong> <strong>India</strong> and to <strong>in</strong>form <strong>India</strong>n companies about the<br />
advantages of Switzerland as a bus<strong>in</strong>ess location.<br />
A deeply embedded aspect of the Swiss bus<strong>in</strong>ess<br />
environment is the <strong>in</strong>cl<strong>in</strong>ation of its SMEs, which form<br />
more than 98% of the Swiss corporate segment, to<br />
focus on develop<strong>in</strong>g niche, <strong>in</strong>novative and high valueadded<br />
products. On a yearly basis, S-GE and the SBHI<br />
have been support<strong>in</strong>g approximately 100 such Swiss<br />
companies who are <strong>in</strong>terested <strong>in</strong> do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> <strong>India</strong>.<br />
The <strong>India</strong>n government’s <strong>in</strong>itiatives such as ‘Make <strong>in</strong> <strong>India</strong>’,<br />
‘Digital <strong>India</strong>’, ‘Skill <strong>India</strong>’ and <strong>in</strong>frastructure development<br />
<strong>in</strong>itiatives <strong>in</strong> the form of <strong>in</strong>dustrial corridors, smart cities,<br />
etc. have been receiv<strong>in</strong>g positive signals from foreign<br />
<strong>in</strong>vestors. Encouraged by these signals, the <strong>India</strong>n<br />
government has been announc<strong>in</strong>g significant policy<br />
<strong>in</strong>itiatives perta<strong>in</strong><strong>in</strong>g to several sectors, which are also of<br />
high <strong>in</strong>terest to Swiss companies <strong>in</strong> sectors such as MEM,<br />
food and food process<strong>in</strong>g, railways and metro, cleantech<br />
and renewable energy, f<strong>in</strong>tech and f<strong>in</strong>ancial services, to<br />
name a few.<br />
<strong>India</strong> Inc.’s effort to look outward with an <strong>in</strong>creas<strong>in</strong>g<br />
aspiration to move up the global value cha<strong>in</strong> and expand<br />
its geographic reach is evident from the susta<strong>in</strong>ed high<br />
levels <strong>in</strong> <strong>India</strong>n outbound <strong>in</strong>vestments over the last few<br />
Dr. Andreas Baum<br />
Ambassador of Switzerland<br />
to <strong>India</strong> and Bhutan<br />
years. Switzerland is considered favourably by many<br />
mult<strong>in</strong>ationals as it has not only showed resilience through<br />
Europe’s challeng<strong>in</strong>g economic conditions of the recent<br />
past, but has also consistently ma<strong>in</strong>ta<strong>in</strong>ed a top position<br />
<strong>in</strong> many global rank<strong>in</strong>gs. In the context of a cont<strong>in</strong>uously<br />
chang<strong>in</strong>g bus<strong>in</strong>ess environment, a key element for<br />
Switzerland’s success has been its emphasis on develop<strong>in</strong>g<br />
and ensur<strong>in</strong>g an economic <strong>in</strong>frastructure that encourages<br />
R&D and <strong>in</strong>novation. S-GE and the SBHI together with<br />
regional/Cantonal representatives promote the country as<br />
a competitive bus<strong>in</strong>ess location and facilitate <strong>in</strong>vestments<br />
of <strong>India</strong>n companies that are <strong>in</strong> the process of consider<strong>in</strong>g<br />
<strong>in</strong>vestment <strong>in</strong> Switzerland. Today, I am happy to say that we<br />
have approximately 140 <strong>India</strong>n companies that are present<br />
<strong>in</strong> Switzerland, especially <strong>in</strong> the fields of ICT, biotech and<br />
life sciences.<br />
Switzerland lays great emphasis towards proactively<br />
evolv<strong>in</strong>g its economic and political systems to rema<strong>in</strong> a<br />
competitive contender for global companies. One <strong>in</strong>dication<br />
that this effort has yielded results is that for seven<br />
consecutive years Switzerland has ranked as the most<br />
competitive economy globally. Not just that, Switzerland<br />
is also one of the global leaders <strong>in</strong> the fields of science,<br />
technology and <strong>in</strong>novation. The synergies between top<br />
global technical universities, such as ETH Zurich and<br />
EPF Lausanne, and the favourable R&D environment <strong>in</strong><br />
Switzerland, comb<strong>in</strong>ed with public-private partnerships, are<br />
key to Switzerland’s <strong>in</strong>novation ecosystem. Switzerland’s<br />
<strong>in</strong>novative landscape is represented abroad, among others,<br />
through its global network of swissnex offices, one of which<br />
is located <strong>in</strong> Bangalore, the startup capital of <strong>India</strong>. swissnex<br />
<strong>India</strong> connects Swiss and <strong>India</strong>n stakeholders and enablers<br />
<strong>in</strong> the public, private and academic fields.<br />
Besides trade, <strong>in</strong>vestments and research cooperation,<br />
let me briefly highlight a recent achievement of high<br />
importance <strong>in</strong> the f<strong>in</strong>ancial field. On 21 st December<br />
2017, Switzerland and <strong>India</strong> signed a Mutual Agreement<br />
related to the <strong>in</strong>troduction of the Automatic Exchange of<br />
Information (AEOI) <strong>in</strong> tax matters, on a reciprocal basis. It is<br />
implemented as of 1 st January <strong>2018</strong>, with a first exchange<br />
of data <strong>in</strong> autumn 2019.<br />
I am also pleased to say that negotiations regard<strong>in</strong>g<br />
the renewal of the Bilateral <strong>Invest</strong>ment Protection Treaty<br />
(BIT) have started. While exist<strong>in</strong>g <strong>in</strong>vestments rema<strong>in</strong><br />
protected under the former BIT (until 6 th April 2032), new<br />
<strong>in</strong>vestments are not protected anymore. This has weakened<br />
the legal framework conditions and rema<strong>in</strong>s a challenge for<br />
attract<strong>in</strong>g new <strong>in</strong>vestments. With regard to the Trade and<br />
Economic Partnership Agreement (TEPA), the EFTA States,<br />
<strong>in</strong>clud<strong>in</strong>g Switzerland, and <strong>India</strong> met for their 17 th round<br />
of negotiations <strong>in</strong> September 2017 <strong>in</strong> New Delhi. Expert<br />
work<strong>in</strong>g groups cont<strong>in</strong>ued discussions <strong>in</strong> the areas of trade<br />
<strong>in</strong> goods, rules of orig<strong>in</strong>, trade <strong>in</strong> services and <strong>in</strong>tellectual<br />
property rights. The next round is likely to take place <strong>in</strong><br />
early <strong>2018</strong>. We are hopeful good progress can be made to<br />
ensure that the positive signals exchanged dur<strong>in</strong>g the Swiss<br />
President’s visit <strong>in</strong> 2017 can be translated <strong>in</strong>to actions.<br />
Speak<strong>in</strong>g of positive signals, given that Switzerland is<br />
a much preferred dest<strong>in</strong>ation for many <strong>India</strong>ns, it comes as<br />
no surprise that <strong>India</strong> is one of the most important markets<br />
of overseas tourists to Switzerland. With the efforts of<br />
the Switzerland Tourism office <strong>in</strong> <strong>India</strong>, arrivals from<br />
<strong>India</strong> have been grow<strong>in</strong>g steadily for many years, with<br />
approximately 800,000 overnights spent by <strong>India</strong>ns <strong>in</strong><br />
Switzerland dur<strong>in</strong>g 2017.<br />
I conclude by <strong>in</strong>vit<strong>in</strong>g you to jo<strong>in</strong> us <strong>in</strong> celebrat<strong>in</strong>g 70<br />
Years of the Swiss-<strong>India</strong>n Friendship Treaty, which will see<br />
cont<strong>in</strong>ued exchanges and conversations this year under the<br />
tag of ‘Connect<strong>in</strong>g M<strong>in</strong>ds - Inspir<strong>in</strong>g the Future’.<br />
Once aga<strong>in</strong>, congratulations to <strong>Invest</strong> <strong>India</strong> for the<br />
successful launch of this magaz<strong>in</strong>e at the World Economic<br />
Forum <strong>2018</strong> <strong>in</strong> <strong>Davos</strong>. This year, the WEF ga<strong>in</strong>s greater<br />
significance for us because Prime M<strong>in</strong>ister Mr. Narendra<br />
Modi, accompanied by a strong official and bus<strong>in</strong>ess<br />
delegation, is participat<strong>in</strong>g <strong>in</strong> the Forum. <br />
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INVEST IN INDIA<br />
27<br />
INVEST IN INDIA
BEYOND BORDERS Switzerland<br />
STADLER’S<br />
<strong>India</strong> plans on track<br />
Swiss railway major Stadler<br />
is among corporations that<br />
have been hand-held by<br />
<strong>Invest</strong> <strong>India</strong> to partake <strong>in</strong> the<br />
<strong>India</strong> opportunity<br />
A<br />
trip on the Rhaetian Railway <strong>in</strong> Switzerland is a cherished memory for most.<br />
Rail fans may have taken note that the custom-built Allegra coaches were built<br />
by Stadler Rail AG, better known for their Stadler FLIRT (Fast Light Innovative<br />
Regional Tra<strong>in</strong>), which is now present <strong>in</strong> dozens of countries across the world.<br />
They could possibly see the brand soon <strong>in</strong> <strong>India</strong> too. The keen <strong>in</strong>terest shown by global<br />
rail majors to seize the burgeon<strong>in</strong>g opportunities be<strong>in</strong>g thrown up to build and modernize<br />
<strong>India</strong>’s vast railways <strong>in</strong>frastructure is see<strong>in</strong>g <strong>in</strong>terest from rail manufacturers from across<br />
the world. Three years ago, the <strong>India</strong>n Railways <strong>in</strong>ked two big-ticket deals to manufacture<br />
diesel and electric locomotives <strong>in</strong> Bihar by GE and Alstom as part of Make <strong>in</strong> <strong>India</strong>.<br />
Gett<strong>in</strong>g tracks to order<br />
The Japanese are help<strong>in</strong>g build a bullet tra<strong>in</strong> between Ahmedabad and Mumbai. Prime<br />
M<strong>in</strong>ister Narendra Modi has visualised build<strong>in</strong>g a diamond quadrilateral of bullet tra<strong>in</strong>s<br />
connect<strong>in</strong>g major metropolises <strong>in</strong> the country on the Tokaido Sh<strong>in</strong>kansen model, and<br />
dedicated freight and <strong>in</strong>dustrial corridors. There is also a renewed policy focus to accelerate<br />
electrification of railway tracks. Not surpris<strong>in</strong>gly, all of this has attracted the attention of<br />
global firms such as Stadler, Bombardier, CRRC and Siemens to seriously explore $140<br />
billion worth of <strong>in</strong>vestment opportunities <strong>in</strong> railways over the next 5 years.<br />
The $2.5 billion Swiss rail company, Stadler Rail AG is one of the 571-odd foreign<br />
companies <strong>Invest</strong> <strong>India</strong> is facilitat<strong>in</strong>g to pursue bus<strong>in</strong>ess opportunities <strong>in</strong> the country with<br />
potential <strong>in</strong>vestments aggregat<strong>in</strong>g to $83 billion of FDI. Of this, $ 7.4 billion has actually<br />
materialised. A big factor of change is a reforms-friendly government that has opened up<br />
the hitherto state-controlled railway <strong>in</strong>frastructure for 100% foreign direct <strong>in</strong>vestments.<br />
Stadler, which has 7,000 employees, provides a comprehensive range of products <strong>in</strong><br />
the commuter rail and railway segments. In addition, it manufactures ma<strong>in</strong>-l<strong>in</strong>e dual-mode<br />
locomotives, shunt<strong>in</strong>g locomotives and passenger carriages, <strong>in</strong>clud<strong>in</strong>g the most powerful<br />
diesel-electric locomotive <strong>in</strong> Europe. Stadler is the world’s lead<strong>in</strong>g manufacturer <strong>in</strong> the rack<br />
and p<strong>in</strong>ion rail vehicle <strong>in</strong>dustry. It largely caters to the European and North African markets<br />
but is now seek<strong>in</strong>g newer ones <strong>in</strong> North America and <strong>India</strong>.<br />
The proposed electric rail coach factory at Kanchrapara <strong>in</strong> West Bengal<br />
is the second largest FDI <strong>in</strong> <strong>India</strong>’s railway <strong>in</strong>frastructure<br />
The Swiss company has a strategic partnership with the Hyderabad-based Medha Servo<br />
Drives. Along with Alstom-CRRC and Siemens-Bombardier consortia, Stadler is bidd<strong>in</strong>g to<br />
build an electric rail coach factory <strong>in</strong> Kanchrapara <strong>in</strong> West Bengal. All the three consortia<br />
have qualified to manufacture and supply tra<strong>in</strong> sets compris<strong>in</strong>g 5,000 electric rail cars over<br />
12 years and ma<strong>in</strong>tenance for another 13 years.<br />
This factory, which is expected to come up on a PPP basis, <strong>in</strong>volves an <strong>in</strong>vestment of<br />
$312.5 million and is the second largest big-ticket FDI <strong>in</strong> railways. Stadler is prepar<strong>in</strong>g its<br />
f<strong>in</strong>al bid for the tender.<br />
Stadler and Medha have also responded to a request for proposal by the Integral Coach<br />
Factory <strong>in</strong> Chennai for manufactur<strong>in</strong>g 16 <strong>in</strong>tercity sleeper tra<strong>in</strong>s. They are actively look<strong>in</strong>g<br />
forward to participate <strong>in</strong> the tender for these tra<strong>in</strong>s. The outcome of this bidd<strong>in</strong>g will be<br />
known only <strong>in</strong> early to mid-<strong>2018</strong>. These are tra<strong>in</strong>s that will run at 160 kmph and will have<br />
alum<strong>in</strong>ium passenger coach bodyshells. These coach bodies are lighter <strong>in</strong> weight and<br />
entail huge sav<strong>in</strong>gs <strong>in</strong> energy. They also make for greater safety <strong>in</strong> case of accidents. The<br />
components will be imported from Europe and assembled <strong>in</strong> Chennai.<br />
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COUNTRY FOCUS<br />
BEYOND BORDERS<br />
We are look<strong>in</strong>g at <strong>India</strong> as an <strong>in</strong>terest<strong>in</strong>g market for our roll<strong>in</strong>g<br />
stock and as a manufactur<strong>in</strong>g hub for roll<strong>in</strong>g stock components for<br />
other markets like south-east Asia — Stefan Rutishauser, Stadler <strong>India</strong> Portfolio Head<br />
“As per your requirements, we have a long coastl<strong>in</strong>e and good sea ports with no<br />
shortage of power, water, and <strong>in</strong>frastructure. In addition to this, we are centrally located<br />
and have excellent road and rail connectivity on all sides,” the chief m<strong>in</strong>ister said.<br />
Andhra’s efforts paid off when the Stadler <strong>in</strong>ked a MoU with the state government <strong>in</strong><br />
January 2017. As the CM stated <strong>in</strong> his <strong>in</strong>terview <strong>in</strong> this <strong>in</strong>augural issue of <strong>Invest</strong> <strong>in</strong> <strong>India</strong>. “One<br />
of the biggest takeaways from last year (at <strong>Davos</strong>) was Swiss company Stadler Rail, who I<br />
met <strong>in</strong> Zurich. They confirmed open<strong>in</strong>g an alum<strong>in</strong>ium spare parts unit <strong>in</strong> Visakhapatnam <strong>in</strong><br />
Andhra Pradesh and are creat<strong>in</strong>g 3,000 jobs”. The state also has another possible production<br />
site to offer Stadler <strong>in</strong> Sri City <strong>in</strong> Chittoor District, which has already attracted smartphone<br />
assembly and vehicle manufacturers.<br />
While Stadler, with handhold<strong>in</strong>g by <strong>Invest</strong> <strong>India</strong>, has seriously checked out land,<br />
logistics, tax structures, and technological human resources for their <strong>in</strong>vestment presence<br />
<strong>in</strong> <strong>India</strong>, it keenly awaits the outcome of the Kanchrapara bid to take a f<strong>in</strong>al call. In case<br />
Stadler is the selected bidder for Kanchrapara Electric Multiple Units (EMU) tender, it will<br />
set up production units <strong>in</strong> <strong>India</strong>, <strong>in</strong>dicated Stefan Rutishauser, Stadler <strong>India</strong> Portfolio Head,<br />
<strong>in</strong> a conference call with <strong>Invest</strong> <strong>in</strong> <strong>India</strong>. That conditionality obviously applies to its MoU with<br />
the Andhra state government as well.<br />
<strong>Invest</strong> <strong>India</strong>, for its part, has pulled out all stops to ensure that Stadler’s efforts to<br />
enter the <strong>India</strong>n market for railway <strong>in</strong>frastructure bear fruition. Among other th<strong>in</strong>gs, it has<br />
facilitated discussions between the company’s top brass and state f<strong>in</strong>ance m<strong>in</strong>ister Amit<br />
Mitra for seek<strong>in</strong>g support of the West Bengal government for the Kanchrapara project. The<br />
m<strong>in</strong>ister, for his part, confirmed support and even <strong>in</strong>vited the company to participate <strong>in</strong> the<br />
<strong>Invest</strong>ment Summit of the state <strong>in</strong> January <strong>2018</strong>.<br />
In the spirit of Make <strong>in</strong> <strong>India</strong>, Stadler <strong>in</strong>tends not just to generate local employment <strong>in</strong> the<br />
state but also ensure that 95 per cent of the value addition is through its supply cha<strong>in</strong> with<strong>in</strong><br />
<strong>India</strong>, expla<strong>in</strong>ed Rutishauser. The Swiss company’s sett<strong>in</strong>g up shop <strong>in</strong> the country naturally<br />
will have beneficial fallout for the country. “We are look<strong>in</strong>g at <strong>India</strong> as an <strong>in</strong>terest<strong>in</strong>g market<br />
for our roll<strong>in</strong>g stock and as a manufactur<strong>in</strong>g hub for roll<strong>in</strong>g stock components for other<br />
markets like south-east Asia,” stated Rutishauser.<br />
Stadler <strong>in</strong>tends a deep presence <strong>in</strong> the country with high technology and economical<br />
offer<strong>in</strong>gs to compete with its rivals, <strong>in</strong>clud<strong>in</strong>g those from Ch<strong>in</strong>a. It also looks to broaden its<br />
presence <strong>in</strong> the region from <strong>India</strong>.<br />
While Stadler has gone ahead and set up a new roll<strong>in</strong>g stock manufactur<strong>in</strong>g facility <strong>in</strong><br />
Salt Lake City <strong>in</strong> the US, its expansion <strong>in</strong>to newer emerg<strong>in</strong>g markets like <strong>India</strong> is crucial to its<br />
<br />
Stadler <strong>in</strong>tends<br />
not just to<br />
generate local<br />
employment <strong>in</strong><br />
the state but<br />
also ensure<br />
that 95 per<br />
cent of the<br />
value addition<br />
is through its<br />
supply cha<strong>in</strong><br />
with<strong>in</strong> <strong>India</strong><br />
Sett<strong>in</strong>g the course<br />
<strong>Invest</strong> <strong>India</strong> has been actively engaged with Stadler’s foray <strong>in</strong>to <strong>India</strong>. The facilitation agency<br />
has assisted <strong>in</strong> outl<strong>in</strong><strong>in</strong>g the key programmes of the <strong>India</strong>n Railways and work<strong>in</strong>g out a<br />
detailed bus<strong>in</strong>ess plan. It has <strong>in</strong>formed the company about the various logistical possibilities<br />
for sett<strong>in</strong>g up its <strong>in</strong>tended production facility – with valuable <strong>in</strong>formation on <strong>in</strong>frastructure,<br />
electricity, factor costs such as labour and land availability. This has also entailed detailed<br />
specification of routes, weather conditions, timel<strong>in</strong>es and costs. The help on logistics was<br />
vital as the transportation of railway roll<strong>in</strong>g stock is a bulky affair.<br />
<strong>Invest</strong> <strong>India</strong> also drew out a long list of possible production sites <strong>in</strong> the country and<br />
shortlisted four states to Stadler. The Andhra Pradesh government, which is aggressively<br />
seek<strong>in</strong>g FDI to transform the state, seized the opportunity. Chief M<strong>in</strong>ister N Chandrababu<br />
Naidu has wooed Swiss companies <strong>in</strong> his annual pilgrimages to the World Economic Forum<br />
(WEF) Summit <strong>in</strong> <strong>Davos</strong>. When officials fron Stadler mentioned that they are look<strong>in</strong>g for a<br />
location that is nearer to the sea port mak<strong>in</strong>g imports and exports easier, Naidu made a<br />
forceful pitch for Visakhapatnam.<br />
Fac<strong>in</strong>g page: Stadler<br />
provides a comprehensive<br />
range of products <strong>in</strong><br />
commuter rail segments<br />
Left: Aeroexpress KISS at<br />
Altenrhe<strong>in</strong>, Stadler Works<br />
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INVEST IN INDIA<br />
31<br />
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SECTOR HIGHLIGHT Infrastructure<br />
Corridor of Prosperity<br />
14 days to 14 hours<br />
Currently it takes about 14 days to transport goods<br />
manufactured near Delhi to Mumbai by rail.<br />
A dedicated double-stacked conta<strong>in</strong>er freight<br />
corridor will cut time to about half-a-day!<br />
Easily one of <strong>India</strong>’s most ambitious <strong>in</strong>frastructure<br />
projects, and arguably the most significant, the<br />
Delhi-Mumbai Industrial Corridor (DMIC) project<br />
entails bold strokes on a broad canvas. DMIC’s<br />
ambition is to create futuristic smart <strong>in</strong>dustrial cities<br />
across six states between the nation’s capital and country’s<br />
f<strong>in</strong>ancial powerhouse. When it is up and runn<strong>in</strong>g, this mega<br />
project entails the planned development of 24 <strong>in</strong>dustrial<br />
regions, eight greenfield smart cities, two airports, two<br />
mass rapid transit systems, three logistical hubs and a<br />
solar power plant. This project exemplifies the drive of the<br />
government to put <strong>in</strong> place quality <strong>in</strong>frastructure to kickstart<br />
planned <strong>in</strong>dustrialization and urbanization.<br />
DMIC has a massive <strong>in</strong>vestment potential of $100 billion<br />
and was conceptualized under the aegis of the Department<br />
for Industrial Policy and Promotion, M<strong>in</strong>istry of Commerce<br />
and Industry, Government of <strong>India</strong>. Consider<strong>in</strong>g the progress<br />
made <strong>in</strong> Phase I of the project, prospective anchor <strong>in</strong>vestors<br />
are show<strong>in</strong>g a lot of <strong>in</strong>terest <strong>in</strong> this mega project.<br />
SOURCE: DMICDC<br />
Focus on <strong>in</strong>fra<br />
Trunk <strong>in</strong>frastructure works and construction <strong>in</strong> four of<br />
the eight smart cities planned at Dholera <strong>in</strong> Gujarat,<br />
Shendra-Bidk<strong>in</strong> <strong>in</strong> Maharashtra, Vikram Udyogpuri <strong>in</strong> MP<br />
and Integrated Industrial Township <strong>in</strong> Greater NOIDA are<br />
proceed<strong>in</strong>g at a fast pace.<br />
Delhi Mumbai Industrial Corridor Development<br />
Corporation Ltd. (DMICDC), a special purpose company,<br />
was <strong>in</strong>corporated to establish, promote and facilitate<br />
development of DMIC project. It is a partnership project<br />
between <strong>India</strong> and Japan as part of the Special Economic<br />
Partnership Initiatives under the Comprehensive Economic<br />
Partnership Agreement signed by both countries. The <strong>India</strong>n<br />
government has a 49 per cent stake, the Japan Bank for<br />
International Co-operation owns 26 per cent and stateowned<br />
f<strong>in</strong>ancial <strong>in</strong>stitutions share the rema<strong>in</strong><strong>in</strong>g equity. The<br />
land has been acquired by respective state governments<br />
through a Special Purpose Vehicle (SPV), creat<strong>in</strong>g a project<br />
<strong>in</strong>fluence area that runs from 150 to 200 kilometres on<br />
either side of the corridor.<br />
DMIC chairman Ramesh Abhishek (who is also<br />
Secretary, Department of Industrial Policy & Promotion -<br />
DIPP) <strong>in</strong>formed shareholders at the company’s AGM (IN)<br />
that “Trunk <strong>in</strong>frastructure facilities tied at plot levels are<br />
be<strong>in</strong>g rapidly developed and various corporate and bus<strong>in</strong>ess<br />
houses from different parts of the world have expressed<br />
avid <strong>in</strong>terest <strong>in</strong> the project”.<br />
The <strong>in</strong>vestors’ <strong>in</strong>terest is not just to set up shop due to<br />
the <strong>in</strong>frastructure com<strong>in</strong>g up <strong>in</strong> these four zones but also as<br />
developers, consultants and PPP concessionaires. The land<br />
allotment policy <strong>in</strong> these four <strong>in</strong>dustrial zones has been<br />
f<strong>in</strong>alized and land parcels are ready for allotment.<br />
Accord<strong>in</strong>g to Alkesh K Sharma, CEO and MD, DMICDC,<br />
one of the unique highlights of the DMIC is the availability<br />
of large contiguous parcels of land: “the land acquired is<br />
also free from any litigation. Acquisition is mostly by mutual<br />
consent, through negotiations. The government’s policy is<br />
that farmers should not be put to any loss. We are tell<strong>in</strong>g<br />
state governments to look at alternative models of land<br />
acquisition such as land pool<strong>in</strong>g, so that they don’t have<br />
to pay upfront. This has advantages. You are mak<strong>in</strong>g the<br />
landowner part of the project. And states who are short of<br />
money don’t have to <strong>in</strong>vest upfront.”<br />
The rationale of DMIC is to create <strong>in</strong>dustrial zones/<br />
areas along the Western Dedicated Freight Corridor (DFC)<br />
that extends for about 1,500 kms. This freight corridor is<br />
be<strong>in</strong>g built by the <strong>India</strong>n Railways and is the backbone of<br />
the DMIC. Usually it takes 13 to 14 days to transport by<br />
rail goods manufactured near Delhi to Mumbai by rail. A<br />
dedicated double-stacked conta<strong>in</strong>er freight corridor makes<br />
it faster to move goods between the capital and f<strong>in</strong>ancial<br />
hub of the country and western ports. This freight-only l<strong>in</strong>e<br />
along busy transport corridors is envisaged to ramp up the<br />
average speed of freight, which has reduced to 24-25 kmph.<br />
The Western Dedicated Freight Corridor DFC is slated to cut<br />
travel time to 13-14 hours!<br />
In order to susta<strong>in</strong> the freight corridor, more <strong>in</strong>dustries<br />
are needed along the route. For this, DMIC proposes to<br />
develop greenfield manufactur<strong>in</strong>g hubs on either side of the<br />
DFC, as noted earlier. The project will boost manufactur<strong>in</strong>g<br />
as there is serious policy concern that the share of this<br />
sector <strong>in</strong> the nation’s output of goods and services has<br />
stagnated at 15 to 16%. Manufactur<strong>in</strong>g is not absorb<strong>in</strong>g the<br />
millions who are leav<strong>in</strong>g the farms. Unlike Japan’s Tokyo-<br />
Osaka <strong>in</strong>dustrial corridor, which is based on high speed<br />
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Infrastructure<br />
Who owns DMICDC?<br />
49%<br />
Government<br />
of <strong>India</strong><br />
represented<br />
Department of<br />
Industrial Policy<br />
& Promotion,<br />
M<strong>in</strong>istry of<br />
Commerce &<br />
Industry<br />
26%<br />
Japan Bank for<br />
International<br />
Cooperation (JBIC)<br />
Percentage<br />
Sharehold<strong>in</strong>g<br />
1.0%<br />
Life Insurance Corporation<br />
of <strong>India</strong> (LIC)<br />
4.1%<br />
<strong>India</strong> Infrastructure F<strong>in</strong>ance<br />
Company Limited (IIFCL)<br />
19.9%<br />
Hous<strong>in</strong>g and Urban Development<br />
Corporation Limited (HUDCO)<br />
(SOURCE: DMICDC)<br />
Fast-track<strong>in</strong>g these early bird projects<br />
<strong>in</strong> Phase I has entailed digital master<br />
plann<strong>in</strong>g of all the four cities, detailed<br />
eng<strong>in</strong>eer<strong>in</strong>g of trunk <strong>in</strong>frastructure,<br />
secur<strong>in</strong>g environmental approvals, and<br />
land pool<strong>in</strong>g procurement<br />
bullet tra<strong>in</strong>s to move passengers, the DFC is for the highspeed<br />
movement of conta<strong>in</strong>er consignments.<br />
“With the project offer<strong>in</strong>g easy movement of goods,<br />
the options to choose transport l<strong>in</strong>es best suited to their<br />
requirements, the sav<strong>in</strong>gs on unnecessary detention and<br />
demurrage costs and reduced lead times, manufacturers<br />
have an even greater <strong>in</strong>centive to set up <strong>in</strong>dustries along the<br />
DMIC,” adds Sharma. The primary objective is to <strong>in</strong>crease<br />
the share of manufactur<strong>in</strong>g to 25% by 2025. DMIC thus is<br />
bound to boost <strong>India</strong>’s economic expansion as the growth<br />
driver is manufactur<strong>in</strong>g.<br />
However, manufactur<strong>in</strong>g also needs domestic<br />
markets. Hence, the creation of cities is considered<br />
imperative. If 700 million <strong>India</strong>ns are to live <strong>in</strong> towns and<br />
cities by 2050, urbanization has to be carefully planned as<br />
the exist<strong>in</strong>g cities are literally burst<strong>in</strong>g at the seams with<br />
stra<strong>in</strong>ed <strong>in</strong>frastructure as rural migrants stream <strong>in</strong> from<br />
the countryside. Of the 24 smart cities planned <strong>in</strong> the<br />
corridor, eight of them <strong>in</strong> Phase I are expected to be ready<br />
by 2019. They will act and function as connectivity hubs<br />
with logistical facilities, airports, expressways and mass<br />
rapid transportation systems.<br />
To fund this mega project, the government had<br />
constituted a DMIC-Project Implementation Trust Fund<br />
(which has been subsequently subsumed by NICDIT) with<br />
a grant-<strong>in</strong>-aid of `17,500 crore. An additional grant of<br />
`1,000 crore has been given to the DMIC Trust to be passed<br />
onto DMICDC for developmental activities. The Centre<br />
has committed $4.5 billion for the first phase of DMIC.<br />
A novel approach is that 60-65 per cent of <strong>in</strong>frastructure<br />
projects will be developed on a public-private partnership<br />
(PPP) basis.<br />
The balance 35 to 45 per cent of the projects<br />
relate to non-PPPable trunk <strong>in</strong>frastructure such as<br />
flood management measures, land improvement, solid<br />
waste disposal, arterial roads, storm water dra<strong>in</strong>age and<br />
sewerage, bus and rail public transport <strong>in</strong> the <strong>in</strong>itial stages.<br />
The development of trunk <strong>in</strong>frastructure is necessary for<br />
the creation of DMIC cities.<br />
Fast-track<strong>in</strong>g these early bird projects <strong>in</strong> Phase I has<br />
entailed digital master plann<strong>in</strong>g of all the four cities, detailed<br />
eng<strong>in</strong>eer<strong>in</strong>g of trunk <strong>in</strong>frastructure, secur<strong>in</strong>g environmental<br />
approvals, and land pool<strong>in</strong>g procurement by the respective<br />
state governments. Speak<strong>in</strong>g to <strong>Invest</strong> <strong>in</strong> <strong>India</strong>, Abhishek<br />
Chaudhary, DMICDC’s vice president, corporate affairs, HR<br />
and company secretary, expla<strong>in</strong>ed “as there is no legal<br />
framework for the development of new cities, DMICDC had<br />
to f<strong>in</strong>alize a shareholders’ agreement and state support<br />
agreement and get the state acts amended so that the<br />
city SPVs have the powers to levy an external and <strong>in</strong>ternal<br />
development fee and user’s fee and exercise municipal<br />
functions”.<br />
“These towns have been notified under Article<br />
243(Q)(1)(C) of the constitution. They will also act as s<strong>in</strong>gle<br />
w<strong>in</strong>dow agencies for grant<strong>in</strong>g approvals and clearances<br />
except pollution, which will be granted by the Central<br />
Pollution Control Board”, Chaudhary adds.<br />
This is the first time that geographical plann<strong>in</strong>g is<br />
be<strong>in</strong>g <strong>in</strong>tegrated with digital master plann<strong>in</strong>g and an ICT<br />
backbone has been established. With GIS mapp<strong>in</strong>g, the land<br />
allotments will only be done onl<strong>in</strong>e. All the utility cables and<br />
pipes will be underground except the street lights.<br />
With ICT <strong>in</strong>tegration from the very beg<strong>in</strong>n<strong>in</strong>g, the<br />
city’s command and control centre will be able to monitor<br />
the supply of water, power, automatic waste collection<br />
systems, dra<strong>in</strong>age and be able to identify and fix the various<br />
breakdowns as and when they occur. There will be 100%<br />
recycl<strong>in</strong>g of water, sewage, roads and transit-oriented<br />
development. These green cities will be viable through<br />
manufactur<strong>in</strong>g.<br />
As these cities are <strong>in</strong> states that are at differ<strong>in</strong>g levels<br />
of development, there is no one-size-fits-all model that<br />
is uniform <strong>in</strong> Phase I. Dholera is the first Plat<strong>in</strong>um rated<br />
city by the <strong>India</strong> Green Build<strong>in</strong>g Council. Work at Dholera<br />
has commenced <strong>in</strong> a 22.5 square kilometre activation<br />
zone, while 32 square kilometres of land was acquired for<br />
Shendra-Bidk<strong>in</strong>.<br />
In contrast, at the Integrated Industrial Township <strong>in</strong><br />
Greater NOIDA the total area is 747 acres and the Integrated<br />
Industrial Township <strong>in</strong> Vikram Udyogpuri, it is 1,100 acres.<br />
The trunk <strong>in</strong>frastructure <strong>in</strong> these two townships will be<br />
completed by mid-<strong>2018</strong>, whereas the bigger ones at<br />
Dholera and Shendra-Bidk<strong>in</strong> will be ready by mid-2019.<br />
The objective is to co<strong>in</strong>cide the start of manufactur<strong>in</strong>g<br />
activities with the f<strong>in</strong>ish<strong>in</strong>g of trunk <strong>in</strong>frastructure. Many<br />
anchor <strong>in</strong>vestors have shown <strong>in</strong>terest <strong>in</strong> buy<strong>in</strong>g land parcels<br />
so as to leverage the first mover advantage. Corporates<br />
can avail the benefits of un<strong>in</strong>terrupted procurement of raw<br />
materials as well as timely supply of f<strong>in</strong>ished products with<br />
connectivity to markets to cater to consumer demand as<br />
well as exports. Even domestic <strong>in</strong>vestors <strong>in</strong> the micro, small<br />
and medium (MSME) sector are eye<strong>in</strong>g the opportunities <strong>in</strong><br />
these cities. With Phase I close at hand, the buzz has begun<br />
about the game-chang<strong>in</strong>g DMIC.<br />
Expand<strong>in</strong>g knowledge frontiers<br />
DMIC’s mandate has now been widened as it is the knowledge<br />
partner for National Industrial Corridor Development &<br />
Implementation Trust (that takes the place of DMIC-PITF)<br />
for the <strong>in</strong>tegrated development of other <strong>in</strong>dustrial corridors.<br />
The government plans similar projects <strong>in</strong> partnership<br />
with state governments such as the Chennai-Bengaluru<br />
<strong>in</strong>dustrial corridor, Amritsar-Kolkata <strong>in</strong>dustrial corridor,<br />
Bengaluru-Mumbai economic corridor and Vizag-Chennai<br />
<strong>in</strong>dustrial corridor. Based on DMIC’s progress, Japan has<br />
decided to partner <strong>India</strong> <strong>in</strong> the Chennai-Bangalore project.<br />
These corridors will accelerate manufactur<strong>in</strong>g, contribute<br />
to planned urbanization and transform the <strong>India</strong>n economy.<br />
DMIC looks to be the showcase among these, not just be<strong>in</strong>g<br />
the <strong>in</strong>itial project, but also provide a roadmap for the rest<br />
of the country. <br />
GUJARAT<br />
Dholera Special <strong>Invest</strong>ment Region (DSIR) — 903 kms 2<br />
The Dholera Special <strong>Invest</strong>ment Region is envisaged to be a world class<br />
dest<strong>in</strong>ation with efficient <strong>in</strong>frastructure opportunities for sett<strong>in</strong>g up of<br />
manufactur<strong>in</strong>g units which will help <strong>in</strong> <strong>in</strong>creas<strong>in</strong>g the <strong>in</strong>dustrial output of<br />
the country and create jobs.<br />
HARYANA<br />
Manesar Bawal <strong>Invest</strong>ment Region (MBIR) — 402 kms 2<br />
The Manesar Bawal <strong>Invest</strong>ment Region (MBIR) is the first <strong>in</strong>vestment<br />
region to be designated under DMIC, an <strong>in</strong>itiative to create a l<strong>in</strong>ear zone<br />
of development along a Dedicated Freight Corridor (DFC) railway l<strong>in</strong>e. It is<br />
envisaged that the MBIR would become a major <strong>in</strong>dustrial centre, hav<strong>in</strong>g<br />
direct connectivity with DFC and major national and state highways.<br />
MADHYA PRADESH<br />
Proposed <strong>Invest</strong>ment Region at<br />
Pithampur-Dhar-Mhow — 372 kms 2<br />
The Proposed <strong>Invest</strong>ment Region at Pithampur-Dhar-Mhow is to be located<br />
towards east of the alignment of Dedicated Freight Corridor and <strong>in</strong> the<br />
Malwa plateau of west central region of Madhya Pradesh. The proposed<br />
<strong>in</strong>frastructure improvements will create a vibrant regional economic<br />
center <strong>in</strong> an underutilized area planned for <strong>in</strong>dustrial and commercial<br />
development. This will support job creation, preserve the surround<strong>in</strong>gs<br />
environmental and enhance the regional economy.<br />
MAHARASHTRA<br />
Shendra Bidk<strong>in</strong> Industrial Area (SBIA) — 84 kms 2<br />
Shendra Bidk<strong>in</strong> Industrial Area is envisioned as a very large-scale <strong>in</strong>dustrial<br />
cluster <strong>in</strong>clud<strong>in</strong>g abundant land provisions for high growth <strong>in</strong>dustries with<br />
wide-rang<strong>in</strong>g <strong>in</strong>frastructure services, convenient access and provisions to<br />
handle environmental waste with m<strong>in</strong>imum impacts.<br />
Dighi Port Industrial Area (DPIA) — 253 kms 2<br />
DPIA, a major node be<strong>in</strong>g developed as self susta<strong>in</strong>ed, futuristic <strong>in</strong>vestment<br />
dest<strong>in</strong>ation, is <strong>in</strong>tended to be a port, trade and <strong>in</strong>dustrial hub that will<br />
augment the port of Mumbai as <strong>India</strong>’s western gateway to global trade,<br />
commerce and <strong>in</strong>dustry.<br />
RAJASTHAN<br />
The Khushkhera- Bhiwadi-Neemrana<br />
<strong>Invest</strong>ment Region (KBNIR) — 160 kms 2<br />
The Khushkhera-Bhiwadi-Neemrana <strong>Invest</strong>ment Region is planned as a<br />
world-class city—<strong>in</strong> this area, with <strong>in</strong>dustry as the ma<strong>in</strong> driver of<br />
economic development and employment with non-<strong>in</strong>dustrial/nonprocess<strong>in</strong>g<br />
uses. Supportive residential, commercial, and <strong>in</strong>stitutional<br />
land uses are provided based on <strong>in</strong>dustry-driven demand and <strong>in</strong>tegrated<br />
<strong>in</strong> the comprehensive concept master plan that <strong>in</strong>cludes a strategy,<br />
framework, and concept plan.<br />
Jodhpur Pali Marwar Industrial Area — 155 kms 2<br />
Jodhpur-Pali-Marwar Industrial Area (IA) lies <strong>in</strong> the western part of the<br />
state, ma<strong>in</strong>ly cover<strong>in</strong>g Pali and Jodhpur district. A station on the DFC<br />
will be at Marwar Junction, which already offers good connectivity to<br />
other parts of <strong>India</strong> along with NH-14, NH-65, NH-8 and NH-76 pass<strong>in</strong>g<br />
through the area.<br />
UTTAR PRADESH<br />
DMICDC PROJECTS<br />
INVESTMENT REGIONS INDUSTRIAL AREAS<br />
Dadri – Noida and Ghaziabad Proposed<br />
<strong>Invest</strong>ment Region — 218 kms 2<br />
The Dadri – Noida and Ghaziabad Proposed <strong>Invest</strong>ment Region at Dadri-<br />
Noida-Ghaziabad would be located with<strong>in</strong> 50 km of the Rewari Dadri<br />
alignment of Dedicated Freight Corridor. The Nearest urban centres are<br />
Delhi and Gurgaon, the IT/ Automobiles dest<strong>in</strong>ation of the country.<br />
34<br />
INVEST IN INDIA<br />
35<br />
INVEST IN INDIA
SECTOR HIGHLIGHT Infrastructure<br />
Japanese Partnership<br />
<strong>in</strong> Western Dedicated Freight Corridor<br />
Work on Western DFC, which<br />
will play a crucial role <strong>in</strong> the<br />
success of the Delhi-Mumbai<br />
<strong>in</strong>dustrial corridor, is see<strong>in</strong>g<br />
Japan’s considerable expertise<br />
<strong>in</strong> the sector at play<br />
speed double stacked conta<strong>in</strong>er railway l<strong>in</strong>e<br />
as they have grow<strong>in</strong>g stakes <strong>in</strong> <strong>India</strong> with its<br />
companies cluster<strong>in</strong>g near the <strong>in</strong>fluence zone<br />
of DMIC. These exist <strong>in</strong> the national capital<br />
region: Delhi, Gurugram, Bawal, Manesar <strong>in</strong><br />
Haryana, NOIDA and Greater NOIDA <strong>in</strong> UP,<br />
Neemrana and Alwar <strong>in</strong> Rajasthan. There<br />
are also clusters of Japanese companies <strong>in</strong><br />
Gujarat and Maharashtra.<br />
Recently, Japan and <strong>India</strong> signed a<br />
`6,000 crore (108 billion yen) loan agreement<br />
for 200 6-axle, 9,000 horse power electric<br />
Fac<strong>in</strong>g page: Mechanized<br />
Track L<strong>in</strong>k<strong>in</strong>g at the<br />
Rewari-Iqbalgarh section<br />
of Western DFC;<br />
Below: Route for the<br />
Western Dedicated Freight<br />
Corridor from JNPT <strong>in</strong><br />
Mumbai to Dadri <strong>in</strong> UP<br />
protection and warn<strong>in</strong>g systems, signal<strong>in</strong>g and<br />
telecom systems total<strong>in</strong>g 164 billion yen or<br />
`10,000 crores.<br />
Toru Suzuki, chairman and manag<strong>in</strong>g<br />
director, Mitsui & Co <strong>India</strong> Pvt Ltd, said the<br />
project is a symbolic cornerstone of the<br />
flourish<strong>in</strong>g bond between <strong>India</strong> and Japan.<br />
“We are confident that our consortium will<br />
complete the work successfully and as<br />
scheduled. Mitsui is committed to this market<br />
and delighted to take part <strong>in</strong> support<strong>in</strong>g the<br />
future development of <strong>India</strong>,” Suzuki said.<br />
Western Dedicated Freight Corridor<br />
Section Distance Route Project Contractor<br />
(<strong>in</strong> kms)<br />
Dadri-Rewari 141 Dadri-Rewari L&T-Sojitz Consortium<br />
Rewari-Iqbalgarh 626 Rewari-Phulera (near Jaipur)- L&T-Sojitz Consortium<br />
Ajmer-Marwar-Iqbalgarh<br />
Iqbalgarh-Vadodara 304 Iqbalgarh-Palanpur-Mehsana- L&T-Sojitz & Gayatri Projects<br />
Amli Road (near Ahmadabad)- Consortium<br />
Vadodara<br />
Vadodara-Sach<strong>in</strong> 163 Vadodara-Sach<strong>in</strong> Mitsui-IRCON-Tata Consortium<br />
Sach<strong>in</strong>-Jawaharlal Nehru Port 265 Sach<strong>in</strong>-Valsad-Vasai Road- Mitsui-IRCON-Tata Consortium<br />
Jawaharlal Nehru Port<br />
Total 1,499<br />
(SOURCE: DFCCIL)<br />
At a time when <strong>India</strong> has embarked on<br />
a number of important <strong>in</strong>frastructure<br />
projects, this is the one that stands out<br />
for its scale and ambition. The Delhi Mumbai<br />
Industrial Corridor Development Corporation<br />
(DMICDC), a flagship programme of the<br />
Government of <strong>India</strong> with the aim of creat<strong>in</strong>g<br />
futuristic <strong>in</strong>dustrial cities, roughly aligned<br />
to a corridor l<strong>in</strong>k<strong>in</strong>g the two largest cities<br />
of the nation.<br />
In turn, DMICDC leverages the “High<br />
Speed - High Capacity” connectivity backbone<br />
provided by Western Dedicated Freight<br />
Corridor (DFC). This corridor covers a distance<br />
of about 1,500 kilometres from Jawaharlal<br />
Nehru Port Trust (JNPT) <strong>in</strong> Mumbai to Dadri<br />
via Vadodara-Ahmedabad-Palanpur-Phulera-<br />
Rewari. The corridor spans areas <strong>in</strong> the states<br />
of Maharashtra, Gujarat, Rajasthan, Haryana<br />
and Uttar Pradesh.<br />
The implementation agency for the freight<br />
corridor is the Dedicated Freight Corridor<br />
The DFC project<br />
will enhance<br />
freight capacity,<br />
mak<strong>in</strong>g it a<br />
revolution for<br />
the <strong>in</strong>dustrial<br />
corridor. Japan<br />
will cont<strong>in</strong>ue to<br />
play an important<br />
role <strong>in</strong> the<br />
development<br />
of the Western<br />
DFC: Takema<br />
Sakamoto, JICA<br />
Corporation of <strong>India</strong> Ltd, under the control of<br />
the m<strong>in</strong>istry of railways. This project is be<strong>in</strong>g<br />
built with massive ODA loans and partnership<br />
with Japan.<br />
Accord<strong>in</strong>g to Dedicated Freight Corridor<br />
Corporation of <strong>India</strong> (DFCCIL), contracts for<br />
the corridor – civil, electrical and signal<strong>in</strong>g and<br />
telecom systems – have been f<strong>in</strong>alized and are<br />
<strong>in</strong> progress.<br />
There are four segments of the DFC that<br />
have been contracted: Rewari <strong>in</strong> Haryana to<br />
Iqbalgarh <strong>in</strong> Gujarat stretch<strong>in</strong>g over of 625<br />
kilometres, the deadl<strong>in</strong>e for which is June<br />
<strong>2018</strong>. The stretch from Iqbalgarh to Vadodara<br />
<strong>in</strong> Gujarat is 325 kilometres long and expected<br />
to be done by March 2019. The Vadodara<br />
to JNPT segment is 425 kilometres and the<br />
target is October 2019. The last segment is<br />
from Rewari to Dadri <strong>in</strong> UP over 127 kilometres<br />
which is to be completed by September 2019.<br />
The Japanese are keen to play an important<br />
role <strong>in</strong> the development of an efficient high-<br />
locomotives for the western DFC. The project<br />
is to be completed <strong>in</strong> 2025. JICA is also<br />
support<strong>in</strong>g construction of civil and track work,<br />
electrification, <strong>in</strong>clud<strong>in</strong>g signal<strong>in</strong>g and telecom<br />
systems for this project <strong>in</strong> a big way. It has so<br />
far extended `26,000 crore (443 billion yen) for<br />
this purpose. “The DFC project will enhance<br />
freight capacity, mak<strong>in</strong>g it a revolution for<br />
the <strong>in</strong>dustrial corridor. Japan will cont<strong>in</strong>ue to<br />
play an important role <strong>in</strong> the development of<br />
the Western DFC,” Takema Sakamoto, chief<br />
representative, JICA <strong>India</strong> Office, said at the<br />
sign<strong>in</strong>g ceremony.<br />
Japanese companies such as Sojitz,<br />
Mitsui, Hitachi among others have won the<br />
contracts for the western DFC. Sojitz and<br />
Larsen and Toubro are construct<strong>in</strong>g the 625-<br />
km Rewari to Iqbalgarh segment. Mitsui, along<br />
with its consortium partners, has secured<br />
contracts for 421 kms of civil and track<br />
work, build<strong>in</strong>g 862 structures <strong>in</strong>clud<strong>in</strong>g 86<br />
major bridges and 2 tunnels, <strong>in</strong>stall<strong>in</strong>g tra<strong>in</strong><br />
In one of its<br />
contracts, a<br />
four-company<br />
consortium<br />
headed by<br />
Mitsui is to<br />
supply and<br />
<strong>in</strong>stall signal<strong>in</strong>g<br />
and telecom<br />
systems along<br />
a 915-kilometre<br />
distance<br />
between Rewari<br />
and Vadodara<br />
The design, <strong>in</strong>terface, compatibility with<br />
exist<strong>in</strong>g rail <strong>in</strong>frastructure was also very<br />
important. For signal<strong>in</strong>g and track work, the<br />
<strong>in</strong>terface was complicated as there were<br />
various persons <strong>in</strong>volved, such as customers,<br />
authorities and local entities to deal with.<br />
With the DFC ultimately scheduled to<br />
l<strong>in</strong>k the four hubs of Delhi, Mumbai, Chennai<br />
and Kolkata at the corners of <strong>India</strong>’s golden<br />
quadrilateral, this landmark project is <strong>in</strong>deed<br />
eagerly anticipated.<br />
The plan is to construct dedicated freight<br />
corridors across the country, thus f<strong>in</strong>ally<br />
separat<strong>in</strong>g passenger tra<strong>in</strong> tracks from freight<br />
ones, which will enable <strong>India</strong>n Railways<br />
to improve its customer orientation and<br />
meet market needs more effectively. When<br />
complete, the Western DFC will be a crucial<br />
cog <strong>in</strong> the transform<strong>in</strong>g <strong>India</strong>, as freight tra<strong>in</strong>s<br />
match express tra<strong>in</strong>s <strong>in</strong> speed and make<br />
trade connections <strong>India</strong>’s largest two cities<br />
transformatively faster. <br />
36<br />
INVEST IN INDIA<br />
37<br />
INVEST IN INDIA
MINISTER SPEAK<br />
<strong>India</strong>’s onward journey of reach<strong>in</strong>g five trillion-dollar<br />
economy is <strong>in</strong>evitable and unstoppable, and is not<br />
possible without expansion of our basket of global<br />
trade. That’s what Suresh Prabhu, Commerce &<br />
Industries M<strong>in</strong>ister, tells <strong>Invest</strong> <strong>in</strong> <strong>India</strong> <strong>in</strong> an exclusive<br />
<strong>in</strong>terview, detail<strong>in</strong>g his vision for the paths <strong>India</strong> will take to<br />
achieve its growth targets and br<strong>in</strong>g greater prosperity to<br />
the nation. Excerpts:<br />
Mak<strong>in</strong>g <strong>India</strong> a<br />
$5 Trillion<br />
Economy<br />
In light <strong>India</strong>’s jump <strong>in</strong> global EODB rank<strong>in</strong>gs what are<br />
your thoughts for <strong>2018</strong>?<br />
I th<strong>in</strong>k this is just the beg<strong>in</strong>n<strong>in</strong>g. GST is the s<strong>in</strong>gle largest<br />
and most significant reform post-Independence and is a<br />
great positive step <strong>in</strong> the right direction. GST will be a shot<br />
<strong>in</strong> the arm to the government <strong>in</strong> br<strong>in</strong>g<strong>in</strong>g transparency and<br />
greater reliability<br />
A new <strong>in</strong>dustrial policy is under the works which will<br />
focus to do three th<strong>in</strong>gs. One is to reduce regulations. Why?<br />
Because the government cannot run <strong>in</strong>dustry. Number two<br />
is to promote modernisation of the exist<strong>in</strong>g <strong>in</strong>dustry as<br />
they are fac<strong>in</strong>g challenges. And number three will be to<br />
take <strong>in</strong>to account the new emerg<strong>in</strong>g <strong>in</strong>dustry, which is not<br />
even seen today.<br />
We are <strong>in</strong> the process of <strong>in</strong>itiat<strong>in</strong>g a number of<br />
measures, which may not have been captured <strong>in</strong> this<br />
particular rank<strong>in</strong>g study. So, as we can see, <strong>in</strong> the next few<br />
years’ time, we will see it improv<strong>in</strong>g aga<strong>in</strong> and aga<strong>in</strong>.<br />
How do you envisage the WTO’s role <strong>in</strong> <strong>India</strong>’s global<br />
trade strategies?<br />
<strong>India</strong> is poised to be third largest economy <strong>in</strong> the world. If<br />
we grow by more than eight per cent we will reach there<br />
<strong>in</strong> next six to seven years, or if we grow by today’s pace<br />
of around seven per cent we will reach there <strong>in</strong> one to<br />
two years more. But our onward journey of reach<strong>in</strong>g five<br />
trillion-dollar economy is <strong>in</strong>evitable and unstoppable. We<br />
are putt<strong>in</strong>g <strong>in</strong> place multi-dimensional strategy to reach<br />
there. This <strong>in</strong>cludes reach<strong>in</strong>g new markets, develop<strong>in</strong>g<br />
new products and evolv<strong>in</strong>g new alliances. In last few years,<br />
the phenomenon of global trade’s expansion out-speed<strong>in</strong>g<br />
the growth <strong>in</strong> global economy is chang<strong>in</strong>g. Today the<br />
global output is higher than the global trade. We need to<br />
re-strategize our global trade; here we need multilaterals<br />
like WTO, much more than ever before. Ch<strong>in</strong>a, which is<br />
now world’s second largest economy with 11.85 trilliondollar<br />
size, this was possible only because they jo<strong>in</strong>ed<br />
WTO. <strong>India</strong>’s journey towards achiev<strong>in</strong>g five trillion dollar<br />
economy sooner, is not possible without expansion of our<br />
basket of global trade.<br />
What are the core focus areas for <strong>India</strong> to boost exports?<br />
We are <strong>in</strong> the process of draw<strong>in</strong>g up the strategies across<br />
five ma<strong>in</strong> components – promotion of services, value<br />
addition <strong>in</strong> goods, focus on agriculture, improv<strong>in</strong>g standards<br />
and logistics<br />
We have identified champion sectors with untapped<br />
potential for value addition, employment generation and<br />
technology upgradation to promote services. Focus will<br />
be on improv<strong>in</strong>g the ease of do<strong>in</strong>g bus<strong>in</strong>ess across these<br />
sectors.<br />
With regards to agriculture we believe that farmers<br />
have all the right to access global markets and get better<br />
prices and for that we will put <strong>in</strong> place a good policy<br />
framework very soon which will focus on remov<strong>in</strong>g all<br />
trade restrictive practices. Additionally, we have to develop<br />
global supply cha<strong>in</strong>s and we are go<strong>in</strong>g to actually work on<br />
that. If here are clusters for <strong>in</strong>dustry, why should we not<br />
th<strong>in</strong>k about clusters for different k<strong>in</strong>ds of agriculture.<br />
<strong>India</strong> is poised to be third largest<br />
economy <strong>in</strong> the world. If we grow by<br />
more than eight per cent we will reach<br />
there <strong>in</strong> next six to seven years<br />
We are also work<strong>in</strong>g on the Prime M<strong>in</strong>ister’s<br />
vision under Zero Defect – Zero Effect scheme through<br />
scientific standard sett<strong>in</strong>g, conformity assessment and<br />
enforcement of standards. Logistics is be<strong>in</strong>g dealt as a<br />
separate subject now.<br />
What steps is the government tak<strong>in</strong>g to reduce <strong>India</strong>’s<br />
logistics cost?<br />
What we lacked earlier was a dedicated team deal<strong>in</strong>g only<br />
with logistics. Every activity, we all know, has two ends to<br />
it: demand and supply. When the two ends meet, economic<br />
activities are created. These two ends meet only when<br />
there’s logistics support. So, logistics need to be dealt with<br />
by the best of the people. Currently, logistics is handled by<br />
various m<strong>in</strong>istries and departments — the railways, roads,<br />
aviation etc. Prime M<strong>in</strong>ister Narendra Modi took the pathbreak<strong>in</strong>g<br />
decision to create a separate logistics division<br />
with<strong>in</strong> the M<strong>in</strong>istry of Commerce and Industry.<br />
Digitalisation is our key strategy. We are creat<strong>in</strong>g a<br />
digital logistics platform for the <strong>in</strong>dustry to <strong>in</strong>crease the<br />
speed of logistics and reduce costs. If a consignment is to<br />
be transported from, say, Mumbai to Kolkata, why not partuse<br />
the rail and part-use the road? But the right decision<br />
can be made only when we know the exact cost and time<br />
taken. A digital platform can make that happen.<br />
Keep<strong>in</strong>g <strong>in</strong> m<strong>in</strong>d the multiple stakeholders, the division<br />
is develop<strong>in</strong>g an <strong>in</strong>tegrated logistics <strong>in</strong>frastructure plan<br />
for <strong>India</strong> to further boost the push towards build<strong>in</strong>g Multi<br />
Modal Logistics Parks <strong>in</strong> <strong>India</strong>. A few locations for sett<strong>in</strong>g<br />
up these parks have been identified on which teams are<br />
work<strong>in</strong>g. We will soon be com<strong>in</strong>g out with a policy targeted<br />
at fast-track<strong>in</strong>g development of logistics <strong>in</strong>frastructure <strong>in</strong><br />
<strong>India</strong>.<br />
A lot of our <strong>in</strong>vestment is driven largely by FDI. You have<br />
been <strong>in</strong>teract<strong>in</strong>g with domestic <strong>in</strong>dustry. What sense are<br />
you gett<strong>in</strong>g? When can we see them <strong>in</strong>vest<strong>in</strong>g? What are<br />
you tell<strong>in</strong>g them?<br />
There are two-fold issues related to domestic <strong>in</strong>vestment.<br />
One, at a macro level, we must promote domestic sav<strong>in</strong>gs.<br />
Second level issue is micro, of excess capacity. Then is<br />
the issue of corporate balance sheets which are under<br />
stress because of legacy issues. First time we are see<strong>in</strong>g<br />
deleverag<strong>in</strong>g has started happen<strong>in</strong>g and corporate balance<br />
sheets are better than what they were. It is a slow process<br />
because legal implementation of deleverag<strong>in</strong>g will take<br />
time. This process has started but there are certa<strong>in</strong> issues<br />
like regulatory challenges. We have set up a committee<br />
chaired by DIPP secretary to look at regulatory issues<br />
because the ultimate idea is that regulation should not<br />
stifle the possibilities of <strong>in</strong>vestment. I get a sense now that<br />
people have aga<strong>in</strong> started look<strong>in</strong>g at <strong>in</strong>vestments. I can<br />
def<strong>in</strong>itely see an improvement <strong>in</strong> the domestic climate.<br />
What strategy do you foresee to boost the “Make In<br />
<strong>India</strong>” <strong>in</strong>itiative?<br />
‘Make <strong>in</strong> <strong>India</strong>’ <strong>in</strong>itiative of the Centre will be successful<br />
only if it happens at the state and district levels. As Railway<br />
M<strong>in</strong>ister I had undertaken a programme of develop<strong>in</strong>g a jo<strong>in</strong>t<br />
tourism circuit on the western coast of <strong>India</strong>, <strong>in</strong>clud<strong>in</strong>g the<br />
Konkan and Goa regions. To start off, now as the M<strong>in</strong>ister<br />
for Commerce and Industry I want to take the Make <strong>in</strong> <strong>India</strong><br />
concept to the Konkan. A delegation of experts will soon<br />
visit the Konkan region to explore opportunities for “Make<br />
<strong>in</strong> Konkan”.<br />
We are also <strong>in</strong> the process of identify<strong>in</strong>g futuristic<br />
sectors such as Electric Storage, Genomics, Robotics etc.<br />
We will be develop<strong>in</strong>g strategic vision and goals to facilitate<br />
Honourable M<strong>in</strong>ister Mr Suresh Prabhu<br />
Commerce & Industries M<strong>in</strong>ister<br />
manufactur<strong>in</strong>g under each of the sectors over the next five<br />
years based on an assessment of domestic, regional and<br />
global demand supply trends. Project monitor<strong>in</strong>g teams<br />
will be deployed to coord<strong>in</strong>ate with different M<strong>in</strong>istries<br />
to monitor progress and share f<strong>in</strong>d<strong>in</strong>gs with the various<br />
forums oversee<strong>in</strong>g implementation.<br />
What message do you have for all the aspir<strong>in</strong>g<br />
entrepreneurs and their start-ups?<br />
For me, start-ups are part of my responsibility, they are a<br />
part of my community and family. Because as a m<strong>in</strong>ister<br />
<strong>in</strong>-charge of the Start-up <strong>India</strong> <strong>in</strong>itiative, we are committed<br />
to promote start-ups <strong>in</strong> <strong>India</strong>.<br />
Start-up is the process which starts with a new<br />
th<strong>in</strong>k<strong>in</strong>g and commitment to do someth<strong>in</strong>g different. If<br />
you start today someth<strong>in</strong>g, you will actually be the lead<strong>in</strong>g<br />
company of tomorrow. You can wait for tomorrow to come<br />
and then say that I will start th<strong>in</strong>k<strong>in</strong>g. It will not happen.<br />
Future is actually extremely bright for those who are<br />
will<strong>in</strong>g to take risks, start th<strong>in</strong>k<strong>in</strong>g differently and start<br />
gett<strong>in</strong>g <strong>in</strong>to economic activity right away. The government<br />
is committed to facilitate and promote start-ups. <br />
38<br />
INVEST IN INDIA<br />
39<br />
INVEST IN INDIA
STATE FOCUS Andhra Pradesh<br />
Graphic representation<br />
of the future capital of<br />
Andhra Pradesh, Amaravati<br />
The new<br />
Andhra<br />
Among <strong>India</strong>’s most globally recognized<br />
states, Andhra Pradesh, located <strong>in</strong><br />
southern <strong>India</strong>, is usually associated<br />
with IT and outsourc<strong>in</strong>g. Led by a driven chief<br />
m<strong>in</strong>ister, N Chandrababu Naidu, known for<br />
his earlier transformation of Hyderabad <strong>in</strong><br />
‘Cyberabad’, the state is now on a path of<br />
rapid growth, be<strong>in</strong>g fuelled by <strong>in</strong>vestments.<br />
For which the state government is go<strong>in</strong>g all<br />
out, and was recognized by topp<strong>in</strong>g the ‘Ease<br />
of Do<strong>in</strong>g Bus<strong>in</strong>ess’ rank<strong>in</strong>gs of <strong>India</strong>n states<br />
<strong>in</strong> 2016. While global corporations such as<br />
Intel and Volkswagen are already present <strong>in</strong><br />
the state, new <strong>in</strong>vestments are pour<strong>in</strong>g <strong>in</strong>.<br />
Recently announced ones <strong>in</strong>clude those by<br />
Aviation City LLP, which will develop an aero<br />
city hub with an <strong>in</strong>vestment of $5.5 billion,<br />
or the B<strong>in</strong> Zayed Group, which has promised<br />
to <strong>in</strong>vest $2 billion <strong>in</strong> various <strong>in</strong>frastructure<br />
With the<br />
reshap<strong>in</strong>g of<br />
the state <strong>in</strong><br />
2014, Andhra<br />
Pradesh is<br />
also rewrit<strong>in</strong>g<br />
its dest<strong>in</strong>y as<br />
it takes rapid<br />
steps towards<br />
development.<br />
Meet the new<br />
state as it<br />
embarks on<br />
this excit<strong>in</strong>g<br />
journey<br />
projects <strong>in</strong> the state. Around 100 South Korean<br />
companies have announced an <strong>in</strong>vestment of<br />
`25,000 crore over the next six months.<br />
Andhra Pradesh as a state was shaped<br />
twice – once <strong>in</strong> 1956, and then aga<strong>in</strong> <strong>in</strong> 2014. A<br />
lot of the common impression is of the state as<br />
it existed <strong>in</strong> the pre-2014 period. In this section,<br />
we are referr<strong>in</strong>g to the newly formed state.<br />
Andhra Pradesh was the largest state<br />
<strong>in</strong> southern <strong>India</strong> before its bifurcation – the<br />
newly formed state comprises of its southern<br />
and eastern regions, which <strong>in</strong>cludes the<br />
second longest coastl<strong>in</strong>e for a state <strong>in</strong> <strong>India</strong><br />
– 974 kilometres. Steeped <strong>in</strong> history – the<br />
name Amaravati itself comes from an ancient<br />
Buddhist city <strong>in</strong> the proximity, the area that is<br />
currently Andhra Pradesh has been shaped<br />
over millennia from <strong>in</strong>fluences far and wide.<br />
The economy of Andhra Pradesh is one<br />
of the fastest grow<strong>in</strong>g economies <strong>in</strong> <strong>India</strong>,<br />
record<strong>in</strong>g double digit growth <strong>in</strong> recent years.<br />
While agriculture is a ma<strong>in</strong>stay, among the<br />
major sectors that have a presence <strong>in</strong>clude<br />
automobiles and auto components, textiles<br />
and apparels, IT, pharmaceuticals, horticulture,<br />
food process<strong>in</strong>g and spices. Significant<br />
deposits of m<strong>in</strong>erals, <strong>in</strong>clud<strong>in</strong>g natural gas,<br />
make it an important state for m<strong>in</strong><strong>in</strong>g. The<br />
state was a pioneer <strong>in</strong> hydro power generation,<br />
and cont<strong>in</strong>ues to have rich sources of energy.<br />
Huge rivers flow through the state, mak<strong>in</strong>g for<br />
rich agricultural belts.<br />
The state is on a crucial location on the<br />
Golden Quadrilateral, a network of highways<br />
connect<strong>in</strong>g <strong>India</strong>’s far flung regions. It has<br />
a road density of 32.82 km/sq.km, slightly<br />
above the national average. Andhra Pradesh<br />
has a total railway network of 2,784 kms<br />
with a rail density of 16.59 per 1,000 sq.km.<br />
Visakhapatnam railway station has been<br />
ranked the cleanest railway station <strong>in</strong> the<br />
country. There are two <strong>in</strong>ternational airports<br />
<strong>in</strong> the state at Visakhapatnam and Vijayawada.<br />
Yes, it was top ranked <strong>in</strong> the ‘Ease of Do<strong>in</strong>g<br />
Bus<strong>in</strong>ess’ <strong>in</strong> 2016, <strong>in</strong> the list prepared by the<br />
World Bank and DIPP. But statistics tell only<br />
SOURCE: AP.GOV.IN<br />
Andhra Pradesh: At a glance<br />
Capital: Hyderabad (till 2024),<br />
Amaravati (future capital)<br />
Area: 162,970 kms (<strong>India</strong>’s 8th<br />
largest state) (close to the<br />
size of Tunisia, 91st largest<br />
country <strong>in</strong> the world)<br />
Population: 49,386,799 (<strong>in</strong><br />
2011, <strong>India</strong>’s 10th most<br />
populous state) (close to<br />
South Korea, ranked 27th by<br />
population of nations)<br />
Literacy rate: 67.41% (2011)<br />
Official language: Telugu<br />
(<strong>India</strong>’s third largest language<br />
by number of speakers)<br />
GDP: `6.83 lakh crore (US$110<br />
billion; 2016-17 estimate)<br />
GDP growth: 10.99% (2015-16)<br />
Rank among states <strong>in</strong> growth<br />
rate of gross state domestic<br />
product (GSDP): 1 (2016)<br />
GDP per capita: `122,376<br />
(US$1,900; 2016-17)<br />
GDP per capita rank among<br />
<strong>India</strong>’s states: 16<br />
Share of all-<strong>India</strong> gross<br />
domestic product: 4.3% (2016)<br />
GDP by sector: Agriculture<br />
24%, Manufactur<strong>in</strong>g 20%,<br />
Services 56% (2016)<br />
Labour force by occupation:<br />
Agriculture 55%, Industry 10%,<br />
Services 35% (2015)<br />
Sex ratio: 993/1000 males<br />
(Fourth highest <strong>in</strong> <strong>India</strong>)<br />
Coastl<strong>in</strong>e: 974 kilometres<br />
part of the story.<br />
Scratch the backgrounds of <strong>India</strong>n ‘techies’<br />
power<strong>in</strong>g Silicon Valley, and most of them<br />
are from Andhra. Padmasree Warrior, former<br />
CTO of Cisco, Shantanu Narayen, CEO, Adobe<br />
Systems and Satya Nadella, CEO, Microsoft<br />
are all from here. Andhra-ities are lead<strong>in</strong>g<br />
members of <strong>India</strong>’s rich lists. Andhra is home<br />
to many iconic crafts – th<strong>in</strong>k Pochampalli and<br />
Mangalagiri weaves, Kalamkari Pa<strong>in</strong>t<strong>in</strong>gs, Bidri<br />
and Dokra metalwork (th<strong>in</strong>k exquisite <strong>India</strong>n<br />
bronze antiques), Kondapalli dolls and more.<br />
Andhra Pradesh currently has a chief<br />
m<strong>in</strong>ister with a proven track record on<br />
development, and the state is work<strong>in</strong>g towards<br />
‘Sunrise Andhra Pradesh-Vision 2029’, an<br />
<strong>in</strong>vestment driven development roadmap.<br />
By which time it aims to reclaim its position<br />
among the lead<strong>in</strong>g states of <strong>India</strong>. The state<br />
has been work<strong>in</strong>g towards creat<strong>in</strong>g quality<br />
<strong>in</strong>frastructure coupled with congenial <strong>in</strong>dustrial<br />
environment to make the state an attractive<br />
dest<strong>in</strong>ation for foreign and domestic <strong>in</strong>vestors.<br />
All signs <strong>in</strong>dicate a good payoff soon. <br />
42<br />
43<br />
INVEST IN INDIA<br />
INVEST IN INDIA
STATE FOCUS Andhra Pradesh<br />
For the Chief M<strong>in</strong>ister of Andhra Pradesh, N<br />
Chandrababu Naidu attend<strong>in</strong>g the annual World<br />
Economic Forum meet<strong>in</strong>g <strong>Davos</strong> is must do event.<br />
To the regulars, the rewards for participat<strong>in</strong>g <strong>in</strong> the<br />
high-profile deliberations of the snowbound <strong>Davos</strong>-Klosters<br />
summit – attended by A-listers <strong>in</strong> the world of global<br />
bus<strong>in</strong>ess and top policy makers – cannot be measured <strong>in</strong><br />
dollars and cents. But the chief m<strong>in</strong>ister has a missionary<br />
zeal to seek out prospective <strong>in</strong>vestors to transform Andhra<br />
Pradesh. Couple of years ago, he met with CEOs of lead<strong>in</strong>g<br />
Swiss companies. Last year, he met with executives of<br />
US-based Hyperloop Transportation Technologies (HTT), a<br />
concept backed by Tesla’s Elon Musk.<br />
A sp<strong>in</strong>-off from that ‘<strong>Davos</strong> moment’ is a MoU signed<br />
<strong>in</strong> September 2017 between the state government and<br />
HTT to <strong>in</strong>troduce the hyperloop transportation system from<br />
Vijayawada to the state’s capital Amaravati. This futuristic<br />
mode of travel – a tube modular transport system that runs<br />
free of friction – is still <strong>in</strong> the trial stage <strong>in</strong> different countries.<br />
But if the CM pulls it off, it will be the first <strong>in</strong>stance that<br />
hyperloop will be <strong>in</strong>troduced <strong>in</strong> <strong>India</strong>.<br />
All of this only strengthens Naidu’s faith as he flies<br />
to top <strong>in</strong>vestor summits regularly to help him attract<br />
fortunate that I have witnessed two revolutions: The third<br />
<strong>in</strong>dustrial revolution that is <strong>in</strong>formation technology and the<br />
fourth <strong>in</strong>dustrial revolution, which is technology comb<strong>in</strong>ed<br />
with the Internet of Th<strong>in</strong>gs—it is a very powerful th<strong>in</strong>g,” he<br />
said <strong>in</strong> a recent <strong>in</strong>terview.<br />
A development-oriented CM<br />
He still rema<strong>in</strong>s reforms-friendly, but there is a big difference<br />
between then and now. To attract big ticket <strong>in</strong>vestments,<br />
Chandrababu Naidu has improved the conditions for do<strong>in</strong>g<br />
bus<strong>in</strong>ess <strong>in</strong> his state. Andhra <strong>in</strong> fact topped the list of Ease<br />
of Do<strong>in</strong>g Bus<strong>in</strong>ess <strong>in</strong> 2016 and was a leader, way ahead<br />
of other states <strong>in</strong> design<strong>in</strong>g and implement<strong>in</strong>g an onl<strong>in</strong>e<br />
system whereby <strong>in</strong>vestors get <strong>in</strong>formation on all state<br />
approvals to establish a bus<strong>in</strong>ess. It was also a leader <strong>in</strong><br />
environment regulation enablers. All these enhance the<br />
state’s appeal for <strong>in</strong>vestors.<br />
The chief m<strong>in</strong>ister’s challenge is to channelise them to<br />
develop the relatively, backward drought-prone Rayalseema<br />
region and improve the lives of the population.<br />
<strong>Invest</strong>ors are also drawn because of Andhra’s strong<br />
fundamentals. For starters, it is one of the fastest grow<strong>in</strong>g<br />
states that have registered double-digit rates of growth<br />
Sunrise over Andhra<br />
The state’s tech-savvy chief m<strong>in</strong>ister is determ<strong>in</strong>ed to see<br />
Andhra Pradesh as the best state for do<strong>in</strong>g bus<strong>in</strong>ess by 2029<br />
Andhra Pradesh has declared a<br />
‘Sunrise Andhra Pradesh-<br />
Vision 2029’<br />
by which time it wants to be<br />
among the top three states <strong>in</strong> <strong>India</strong><br />
Graphic representation<br />
of Amaravati City;<br />
Below: 3D rendition of<br />
Hyperloop Tra<strong>in</strong><br />
<strong>in</strong>ternational bus<strong>in</strong>ess <strong>in</strong>terest to Andhra and make it<br />
a lead<strong>in</strong>g global dest<strong>in</strong>ation by 2050. He has already<br />
launched a ‘Sunrise Andhra Pradesh-Vision 2029’, and state<br />
adm<strong>in</strong>istration is work<strong>in</strong>g to fulfil his vision, accord<strong>in</strong>g to<br />
which Andhra Pradesh wants to be one of the top three<br />
states <strong>in</strong> the country by 2022, a year that will mark 75 years<br />
of <strong>in</strong>dependent <strong>India</strong>.<br />
This sort of bold th<strong>in</strong>k<strong>in</strong>g differentiates Andhra’s chief<br />
m<strong>in</strong>ister from many of his counterparts <strong>in</strong> the country.<br />
When he was chief m<strong>in</strong>ister of the undivided state, he was<br />
often referred to as the reform-friendly CEO of Andhra.<br />
He presided over the transformation of Hyderabad <strong>in</strong>to<br />
‘Cyberabad’ – a process that was FDI-driven after Microsoft<br />
established its headquarters <strong>in</strong> the state capital <strong>in</strong> the<br />
1990s. He took an early bet on IT and it paid huge dividends.<br />
An ardent admirer of S<strong>in</strong>gapore and its found<strong>in</strong>g father, the<br />
late Lee Kuan Yew, Naidu has roped <strong>in</strong> entities from the<br />
city-state <strong>in</strong> design<strong>in</strong>g and develop<strong>in</strong>g the new capital. Now<br />
as the chief m<strong>in</strong>ister of a smaller state – it was bifurcated<br />
<strong>in</strong> 2014 – he wants similar results. But Naidu has to take<br />
a different foreign <strong>in</strong>vestor-driven bet this time. “I am very<br />
s<strong>in</strong>ce 2015-16. What has powered this tigerish trajectory<br />
is a dynamic agricultural sector <strong>in</strong> coastal Andhra that has<br />
prospered <strong>in</strong> the Krishna-Godavari delta region. A forwardlook<strong>in</strong>g<br />
farm<strong>in</strong>g community has diversified <strong>in</strong>to fisheries,<br />
pisciculture and horticulture. A strong agrarian base;<br />
the second longest coastl<strong>in</strong>e <strong>in</strong> <strong>India</strong>, 974 kms, and<br />
a large English-speak<strong>in</strong>g population are huge advantages<br />
<strong>in</strong> a global world of trade and <strong>in</strong>vestments, especially<br />
when <strong>in</strong>vestors look eastwards to south-east Asia and<br />
Indo-Pacific region.<br />
The sunrise vision of the $104 billion state is ambitiously<br />
predicated on double-digit growth <strong>in</strong> the future as well with<br />
huge <strong>in</strong>vestments kick-start<strong>in</strong>g <strong>in</strong>dustrialisation.<br />
Around 55% of the population lived off the land <strong>in</strong><br />
2014-15 and is expected to decl<strong>in</strong>e to 40% <strong>in</strong> 2029 while<br />
the segment work<strong>in</strong>g <strong>in</strong> <strong>in</strong>dustry goes up from 18% to 30%<br />
over this period. Those <strong>in</strong> services rema<strong>in</strong> stable at 52%<br />
of the labour force. Such a classic development strategy<br />
is envisioned to result <strong>in</strong> a happy, <strong>in</strong>clusive, responsible,<br />
globally competitive and <strong>in</strong>novation-driven society through<br />
structural transformation.<br />
44<br />
INVEST IN INDIA<br />
45<br />
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Andhra Pradesh<br />
What to look out for<br />
Naidu has traversed from be<strong>in</strong>g reforms-friendly to one<br />
seek<strong>in</strong>g <strong>in</strong>clusive growth. His strategy to rapidly <strong>in</strong>dustrialize<br />
entails develop<strong>in</strong>g <strong>in</strong>dustrial corridors like the Chennai-<br />
Bengaluru corridor that passes through Rayalseema and<br />
another one connect<strong>in</strong>g Visakhapatnam with Chennai. There<br />
are plans to develop manufactur<strong>in</strong>g clusters <strong>in</strong> different<br />
parts of the state. Sri City <strong>in</strong> Chittoor district has already<br />
become a hub of smartphone assembly. It is also set to<br />
become an automobile hub. Elsewhere <strong>in</strong> the Rayalseema<br />
region, there are <strong>in</strong>dications that South Korea’s Kia Motors<br />
is keen to make a $1.6 billion <strong>in</strong>vestment <strong>in</strong> Anantapur<br />
district. The CM is also keen that aerospace and defence<br />
projects come up <strong>in</strong> Rayalseema. Horticulture is another<br />
huge priority, with the government hav<strong>in</strong>g set a target of 20<br />
per cent growth <strong>in</strong> 2016-17.<br />
All roads lead to Amaravati<br />
However, the gleam <strong>in</strong> N Chandrababu Naidu’s eye appears<br />
when he speaks of Amaravati, the state’s greenfield capital,<br />
which has just started to take shape. He took n<strong>in</strong>e years<br />
to develop Cyberabad. Amaravati, literally, ‘the place for<br />
immortals’. will take longer as it is a pioneer smart city. A<br />
major positive is the state has fertile land for the capital,<br />
which is be<strong>in</strong>g built from the scratch. “We followed a highly<br />
<strong>in</strong>novative policy of giv<strong>in</strong>g farmers a stake to their land<br />
barter for the evolution of the capital city,” Naidu says <strong>in</strong> an<br />
<strong>in</strong>terview with <strong>Invest</strong><strong>in</strong>g <strong>in</strong> <strong>India</strong>. “Under the pool<strong>in</strong>g system,<br />
they would get `50,000 per month and will later get 1,000<br />
square yards for residential purposes and 450 square yards<br />
for commercial uses. Around 30,000 acres have been pooled<br />
across 29 villages. Farmers have similarly cooperated <strong>in</strong><br />
giv<strong>in</strong>g up their land for <strong>in</strong>dustrial projects as well.”<br />
Recently, the state government flew 123 farmers to<br />
S<strong>in</strong>gapore to show them what the capital will look like<br />
when it is fully built. That city-state <strong>in</strong>deed is a vision of<br />
what Amaravati will one day become with the help of its<br />
ANDHRA PRADESH<br />
Economic Powerhouse<br />
13,000 MW <strong>in</strong>stalled power capacity<br />
(29,000MW planned by 2019)<br />
18,000 MW of renewable energy<br />
planned by 2021-22<br />
2 super critical thermal power stations<br />
(at Srikakulam and Visakhapatnam)<br />
6 Operational Ports<br />
250 MMT capacity at exist<strong>in</strong>g ports<br />
4 Airports be<strong>in</strong>g upgraded<br />
(Vijayawada, Tirupati, Rajamundry, Kadapa)<br />
3 Regional Airports proposed<br />
(<strong>in</strong> Chittoor, Nellore and Kurnool districts)<br />
46,000 kms of road network<br />
(4,300 km of national highways)<br />
1 st rank <strong>in</strong> coastal and fresh water aquaculture<br />
1 st rank <strong>in</strong> mango, papaya, lemon, turmeric,<br />
tomato and chili production<br />
1 st rank <strong>in</strong> egg production<br />
2 nd rank <strong>in</strong> paddy, groundnut and maize production<br />
2 nd rank <strong>in</strong> meat production<br />
3 rd rank <strong>in</strong> milk production<br />
Below:<br />
Graphic representation of the SRM Campus<br />
<strong>in</strong> Andhra Pradesh’s capital Amaravati<br />
SOURCE: AP.GOV.IN<br />
FDI <strong>in</strong> ` Crore<br />
4,617<br />
8,207<br />
2013 2014 2015 2016<br />
FUNDING SURGE<br />
6,212<br />
Foreign direct <strong>in</strong>vestment (FDI) <strong>in</strong>to Andhra<br />
Pradesh jumped nearly threefold <strong>in</strong> 2016.<br />
master developers. Andhra’s capital is also be<strong>in</strong>g built at the<br />
water’s edge. Accord<strong>in</strong>g to Naidu, “most fasc<strong>in</strong>at<strong>in</strong>g cities<br />
<strong>in</strong> the world are <strong>in</strong> fact built on river banks. I have a similar<br />
dream for Amaravati, that it will be among the top five global<br />
cities like Amsterdam, Venice, S<strong>in</strong>gapore and Tokyo. We<br />
would be <strong>in</strong>vest<strong>in</strong>g `50,000 crores for basic <strong>in</strong>frastructure<br />
and once it is developed, it will be remembered by people<br />
for centuries”.<br />
UK-based firm Fosters+Partners is provid<strong>in</strong>g the city<br />
architecture plan. The firm’s architects had met Telugu film<br />
director S S Rajamouli, best known for Bahubali, for <strong>in</strong>sights<br />
on Andhra’s history and culture. Makki and Associates,<br />
a Japanese architecture company, have been tasked<br />
with design<strong>in</strong>g two iconic build<strong>in</strong>gs to house the state’s<br />
assembly and the high court. Netherlands-based Arcadis<br />
will be plann<strong>in</strong>g and design<strong>in</strong>g the blue <strong>in</strong>frastructure <strong>in</strong> and<br />
around Amaravati that will feature water bodies, reservoirs,<br />
ponds and lakes, river dra<strong>in</strong>age and canals. Arcadis has <strong>in</strong><br />
turn signed an agreement with Tata Consult<strong>in</strong>g Eng<strong>in</strong>eers<br />
for blue <strong>in</strong>frastructure <strong>in</strong> the city.<br />
Important facets of a smart city have been factored<br />
<strong>in</strong>to plans for Amaravati to make it an ideal place to live and<br />
work <strong>in</strong>. Around 40 per cent of the area is be<strong>in</strong>g reserved<br />
for green and blue spaces with a 30-kilometre water front.<br />
Parks and public facilities will all be with<strong>in</strong> a 10-m<strong>in</strong>ute<br />
walk<strong>in</strong>g distance.<br />
The plan is that the bulk of its population of 2.5 million<br />
by 2050 will use public transportation. The suggestion<br />
by the master architects is that only electric buses with<br />
no emissions will run <strong>in</strong> the new capital. These will be<br />
driverless and will run on roads with dedicated stops. The<br />
hyperloop transportation plan completes the future vision<br />
of a capital city that reflects the state’s culture while be<strong>in</strong>g<br />
a global hub.<br />
Over the last six months, the S<strong>in</strong>gapore consortium<br />
and the Andhra Pradesh government formalised their<br />
16,252<br />
SOURCE: DIPP<br />
I have a dream<br />
for Amaravati,<br />
that it will be<br />
among the top<br />
five global cities<br />
like Amsterdam,<br />
Venice, S<strong>in</strong>gapore<br />
and Tokyo<br />
— N Chandrababu Naidu<br />
Chief M<strong>in</strong>ister,<br />
Andhra Pradesh<br />
agreement on its development and on November 17,<br />
S<strong>in</strong>gapore’s m<strong>in</strong>ister of trade and <strong>in</strong>dustry, S Iswaran and<br />
Naidu hailed the “very good progress” made. In a statement,<br />
the S<strong>in</strong>gapore m<strong>in</strong>istry said <strong>in</strong> a statement that the design of<br />
build<strong>in</strong>gs <strong>in</strong> the commercial core of Amaravati had started<br />
and that the two sides also discussed possible collaborations<br />
<strong>in</strong> the rest of Andhra Pradesh. “These <strong>in</strong>cluded smart cities<br />
solutions for Amaravati and logistics and connectivity <strong>in</strong> the<br />
Andhra Pradesh state,” said a M<strong>in</strong>istry of Trade and Industry<br />
(MTI) S<strong>in</strong>gapore spokesperson.<br />
The big question is where the fund<strong>in</strong>g would come<br />
from. Amaravati needs `32,000 crore <strong>in</strong> the first three<br />
years for build<strong>in</strong>g the trunk <strong>in</strong>frastructure alone. The central<br />
government’s 100 smart cities mission, accord<strong>in</strong>g to which<br />
a city will get only `500 crore for five years, is woefully<br />
<strong>in</strong>adequate. So is the centre’s grant of `2,500 crore with<br />
another `1,000 crore to follow.<br />
Andhra, for its part, had tied up `14,200 crore<br />
assistance from HUDCO and the World Bank <strong>in</strong> April/ May<br />
2016. The balance has to be raised from other sources<br />
<strong>in</strong>clud<strong>in</strong>g private <strong>in</strong>vestors. However, a feasible option is to<br />
monetize some of the land offered up by farmers to bridge<br />
the budgetary gap.<br />
Currently, the state government works out of an<br />
<strong>in</strong>terim secretariat build<strong>in</strong>g which is fully functional.<br />
The chief m<strong>in</strong>ister and senior officials function from<br />
Amaravati although Hyderabad is to be the jo<strong>in</strong>t capital<br />
for 10 years. Accord<strong>in</strong>g to the timel<strong>in</strong>e, the first phase<br />
with trunk <strong>in</strong>frastructure, government complex,<br />
universities, healthcare facilities will be done by 2019.<br />
The capital city will be populated and fully functional<br />
only by the second phase <strong>in</strong> <strong>in</strong> 2024. The D-Day for the<br />
whole project to be completed is 2029. With the vision<br />
2029 implementation on fast track, the impacts of the<br />
state’s bifurcation could well be a part of the state’s past<br />
by then. <br />
46<br />
INVEST IN INDIA<br />
47<br />
INVEST IN INDIA
STATE FOCUS Andhra Pradesh<br />
Dr. B.R. Shetty<br />
Chairman,<br />
BRS Ventures and Hold<strong>in</strong>gs<br />
Gett<strong>in</strong>g the right prescription<br />
Andhra Pradesh’s new greenfield capital,<br />
Amaravati, is rapidly tak<strong>in</strong>g shape.<br />
With a focus on <strong>in</strong>frastructure, it is<br />
no surprise that health needs are a priority.<br />
Among the major <strong>in</strong>vestments here is a 1,500-<br />
bed hospital, the first FDI project <strong>in</strong> Amaravati.<br />
The foundation stone of BRS Amaravati<br />
Medicity was laid by Andhra Pradesh Chief<br />
M<strong>in</strong>ister N Chandrababu Naidu <strong>in</strong> August 2017,<br />
who said he wants Amaravati to become a hub<br />
for healthcare and medical facilities.<br />
The hospital is be<strong>in</strong>g set up by Abu Dhabibased<br />
bus<strong>in</strong>essman Dr. B.R. Shetty. Medicity<br />
is also scheduled to generate 500 placements<br />
and 400 seats for degrees <strong>in</strong> medic<strong>in</strong>e.<br />
Shetty’s firm, BRS Ventures and Hold<strong>in</strong>gs’<br />
proposed <strong>in</strong>vestment of $1.8 billion <strong>in</strong> Andhra<br />
Pradesh is a step towards chang<strong>in</strong>g the way<br />
medical education, research and development<br />
are conducted <strong>in</strong> <strong>India</strong>. Shetty had signed<br />
a Memorandum of Understand<strong>in</strong>g with the<br />
Andhra Pradesh Economic Development Board<br />
(APEDB) at the Partnership Summit <strong>in</strong> January<br />
2017 on sett<strong>in</strong>g up the Medicity.<br />
Accord<strong>in</strong>g to J. Krishna Kishore, CEO of<br />
APEDB, “BRS Medicity Amaravati signals a<br />
medical renaissance <strong>in</strong> Andhra Pradesh. The<br />
commitment towards health and well-be<strong>in</strong>g<br />
is very close to our chief m<strong>in</strong>ister and BRS<br />
Medicity Amaravati will be an important node<br />
for medical and wellness tourism as Amaravati<br />
NRI<br />
bus<strong>in</strong>essman<br />
Dr B.R. Shetty<br />
is mak<strong>in</strong>g a<br />
significant<br />
<strong>in</strong>vestment<br />
of around $2<br />
billion <strong>in</strong> Andhra<br />
Pradesh<br />
48<br />
INVEST IN INDIA<br />
is well poised to become a world class city.”<br />
The chief m<strong>in</strong>ister reiterated that there are<br />
several reasons for go<strong>in</strong>g with BRS. “We are<br />
also foster<strong>in</strong>g learn<strong>in</strong>g and <strong>in</strong>novation.<br />
The man beh<strong>in</strong>d Medicity<br />
Way back <strong>in</strong> 1973, just a couple of years after<br />
the establishment of the United Arab Emirates<br />
as an <strong>in</strong>dependent country, an <strong>India</strong>n migrant<br />
from Udupi <strong>in</strong> Karnataka ventured to the desert<br />
k<strong>in</strong>gdom to pursue his ambitions.<br />
Armed with a cl<strong>in</strong>ical degree <strong>in</strong> pharmacy,<br />
he began his entrepreneurial career <strong>in</strong> Abu<br />
Dhabi dur<strong>in</strong>g the formative years of the UAE.<br />
Thanks to the commitment, hard work, vigour<br />
and dynamic personality, the youthful <strong>India</strong>n<br />
The BRS Amaravati Medicity has<br />
partnered with University of California,<br />
San Diego, Medicity has assured that<br />
they will accommodate 1,000-1,500<br />
students and various programmes<br />
will be offered <strong>in</strong> the spectrum of<br />
medic<strong>in</strong>e and healthcare research<br />
— N Chandrababu Naidu<br />
Chief M<strong>in</strong>ister, Andhra Pradesh<br />
was able to start a new entity, which has today<br />
blossomed <strong>in</strong>to a multi-product empire spread<br />
across the globe.<br />
“In a vast, sandy desert, <strong>in</strong> the middle of<br />
a sear<strong>in</strong>g hot summer, I became the country’s<br />
first outdoor salesman,” recalls Shetty, now a<br />
lead<strong>in</strong>g bus<strong>in</strong>essman from the country.<br />
Go<strong>in</strong>g from cl<strong>in</strong>ic to cl<strong>in</strong>ic sell<strong>in</strong>g drugs to<br />
doctors, load<strong>in</strong>g cartons, hoist<strong>in</strong>g five-gallon<br />
barrels on his shoulder and climb<strong>in</strong>g staircases<br />
were among his first work assignments <strong>in</strong> the<br />
UAE capital.<br />
Shetty, with his bus<strong>in</strong>ess acumen and<br />
consumer <strong>in</strong>sight, soon noticed the deficiency<br />
for basic cl<strong>in</strong>ics <strong>in</strong> the region. He then set up<br />
the New Medical Centre (NMC) as a small<br />
pharmacy and diagnostic cl<strong>in</strong>ic.<br />
And there has been no look<strong>in</strong>g back s<strong>in</strong>ce<br />
then for him. He was blessed with success<br />
About NMC The NMC healthcare, part of the BRS empire, is the lead<strong>in</strong>g<br />
private sector healthcare operator <strong>in</strong> UAE, with a nation-wide<br />
Healthcare network of hospitals and operations <strong>in</strong> the country s<strong>in</strong>ce 1974.<br />
The group currently operates or manages eight hospitals,<br />
two day-care patient centres, n<strong>in</strong>e medical centres and 15<br />
pharmacies. Besides operat<strong>in</strong>g other healthcare facilities, it is also a lead<strong>in</strong>g supplier<br />
of products and consumables across several key market segments <strong>in</strong> UAE, with the<br />
major contribution com<strong>in</strong>g from healthcare related products. The group reported<br />
revenues of $1,220.8 million for 2016.<br />
49<br />
INVEST IN INDIA<br />
and soon his hospitals began sprout<strong>in</strong>g all over<br />
the region – at Dubai, Abu Dhabi, Sharjah and<br />
Al A<strong>in</strong>.<br />
Today, Shetty is the proud visionary<br />
beh<strong>in</strong>d 55 healthcare facilities which cater to<br />
more than five million patients annually. All of<br />
them have experienced doctors from diverse<br />
backgrounds, who ensure a quality standard<br />
<strong>in</strong> healthcare that promises affordable<br />
excellence. The UAE-based group is the<br />
nation’s largest private healthcare provider.<br />
Shetty’s Andhra sojourn<br />
The Andhra Pradesh project kicked off when<br />
Shetty got <strong>in</strong>to discussions with officials<br />
from <strong>Invest</strong> <strong>India</strong>, the official <strong>in</strong>vestment<br />
promotion and facilitation agency of the <strong>India</strong>n<br />
government, which set up meet<strong>in</strong>gs with the<br />
Andhra Pradesh government <strong>in</strong> August 2015
Andhra Pradesh<br />
NMC Healthcare<br />
<strong>in</strong> Hyderabad and also organized site visits<br />
to several land parcels <strong>in</strong> Visakhapatnam,<br />
Vijayawada, Amaravati and Tirupati.<br />
Shetty and his team had several<br />
consultations with <strong>Invest</strong> <strong>India</strong>. And based on<br />
these discussions, it f<strong>in</strong>alised the locations and<br />
suitable models for engagement with other<br />
government agencies.<br />
In January 2016, BRS decided to set up an<br />
<strong>in</strong>tegrated Medicity <strong>in</strong> Amaravati and Kurnool <strong>in</strong><br />
Andhra Pradesh and Varanasi <strong>in</strong> Uttar Pradesh.<br />
The group plans to <strong>in</strong>vest $1.9 billion <strong>in</strong> Andhra<br />
and another $500 million <strong>in</strong> Varanasi. <strong>Invest</strong><br />
<strong>India</strong> also worked with NMC Healthcare to<br />
Graphic representation of NMC Royal Hospital,<br />
Khalifa City, Abu Dhabi<br />
The digitisation<br />
of medical<br />
records will<br />
also assist <strong>in</strong><br />
management of<br />
crisis, disease<br />
and outbreaks<br />
through Big Data<br />
analytical tools.<br />
locate land parcels of 30-40 acres <strong>in</strong> Varanasi.<br />
<strong>Invest</strong> <strong>India</strong> provided a clear plan for NMC<br />
to consider a JV partner. After considerable<br />
research and various round of meet<strong>in</strong>gs NMC<br />
decided to partner with UAE’s telecom service<br />
provider, Du. NMC and Du will together work<br />
towards implement<strong>in</strong>g electronic health<br />
records with the use of blockcha<strong>in</strong> technology.<br />
This will provide a number of benefits.<br />
Blockcha<strong>in</strong> will br<strong>in</strong>g data <strong>in</strong>tegrity, security<br />
and trust to the flow of patient’s <strong>in</strong>formation<br />
between health providers and the patient.<br />
It will enable NMC to be 100% certa<strong>in</strong> of the<br />
accuracy of all the retrieved records.<br />
Patients consult<strong>in</strong>g any doctor <strong>in</strong> NMC will<br />
f<strong>in</strong>d their <strong>in</strong>teraction seamless. The digitisation<br />
of medical records will also assist <strong>in</strong><br />
management of crisis, disease and outbreaks<br />
through Big Data analytical tools.<br />
“NMC Healthcare is highly <strong>in</strong>debted to<br />
<strong>Invest</strong> <strong>India</strong> for expedit<strong>in</strong>g the set-up of its<br />
project,” remarks Shetty, add<strong>in</strong>g that “Make<br />
<strong>in</strong> <strong>India</strong> is <strong>in</strong>deed an excellent <strong>in</strong>itiative by the<br />
government that motivates foreign <strong>in</strong>vestors<br />
to enter the <strong>India</strong>n market.” Andhra is the first<br />
beneficiary of this grow<strong>in</strong>g <strong>in</strong>volvement of BRS<br />
<strong>in</strong> the country. A change that could well set the<br />
tone for Amaravati’s development as well. <br />
50<br />
INVEST IN INDIA
PATHBREAKERS<br />
Vestas<br />
Just 15 months. That’s how long it took<br />
Danish w<strong>in</strong>d turb<strong>in</strong>e maker Vestas to<br />
go from sign<strong>in</strong>g a deal to beg<strong>in</strong> mak<strong>in</strong>g<br />
blades at its Rajoda plant, about 30<br />
kilometres south west of Ahmedabad. It’s an<br />
example that truly exemplifies why <strong>India</strong> has<br />
dramatically improved its rank<strong>in</strong>g <strong>in</strong> World<br />
Bank’s Ease of Do<strong>in</strong>g Bus<strong>in</strong>ess global rank<strong>in</strong>gs<br />
<strong>in</strong> <strong>2018</strong>.<br />
It is also an example of how a pro-active<br />
government that seeks FDI can work speedily<br />
to attract such <strong>in</strong>flows. It <strong>in</strong>dicates how<br />
agencies such as <strong>Invest</strong> <strong>India</strong> can successfully<br />
handhold a foreign <strong>in</strong>vestor to navigate the<br />
system and ensure speedier clearances. It<br />
is also a tribute to the bus<strong>in</strong>ess environment<br />
<strong>in</strong> states such as Gujarat that welcome<br />
greenfield <strong>in</strong>vestments.<br />
When the Shikarpur region of Gujarat<br />
started witness<strong>in</strong>g enormous w<strong>in</strong>dmills,<br />
people naturally were sceptical. With the<br />
<strong>in</strong>dustry <strong>in</strong> Kutch limited to cotton textiles,<br />
crafts, m<strong>in</strong>erals, and rubber, they had limited<br />
knowledge about w<strong>in</strong>dmills and renewable<br />
sources of energy. And even less about<br />
the likely multiplier effects of employment<br />
generation from this change.<br />
Today, a unit of this new energy company<br />
has created 1,000 direct and 3,000 <strong>in</strong>direct<br />
jobs, leav<strong>in</strong>g the people of Shikarpur pleasantly<br />
surprised. They didn’t have to travel far and<br />
wide for a job, now their job was closer to<br />
home. And it is <strong>Invest</strong> <strong>India</strong> who made this<br />
possible.<br />
W<strong>in</strong>d <strong>in</strong> FDI sails<br />
Vestas’ facility <strong>in</strong> Ahmedabad was up and<br />
runn<strong>in</strong>g <strong>in</strong> a record time of 15 months<br />
Meet<strong>in</strong>g of m<strong>in</strong>ds<br />
The story began <strong>in</strong> November 2015 when Bert<br />
Nordberg, Vestas’ chairman, and President<br />
and CEO Anders Runevad met Prime M<strong>in</strong>ister<br />
Narendra Modi <strong>in</strong> Delhi. Nordberg gave a<br />
commitment to the PM that the company was<br />
will<strong>in</strong>g to br<strong>in</strong>g <strong>in</strong> substantial FDI <strong>in</strong>to <strong>India</strong> for<br />
sett<strong>in</strong>g up a w<strong>in</strong>d turb<strong>in</strong>e blade manufactur<strong>in</strong>g<br />
factory. Vestas also committed to partner<strong>in</strong>g<br />
with the <strong>India</strong>n government <strong>in</strong> provid<strong>in</strong>g<br />
<strong>in</strong>novative solutions to make <strong>India</strong>’s w<strong>in</strong>d<br />
power sector “Best <strong>in</strong> Class” and “Most<br />
Affordable” through Vestas’ leadership.<br />
Vestas’ board approved its <strong>India</strong> plan<br />
and gave its nod to a factory location near<br />
Ahmedabad. The next steps entailed a MoU<br />
with Gujarat, procurement of 20 permits<br />
and <strong>in</strong>vest<strong>in</strong>g `500 crore (or $77 million) to<br />
establish a greenfield unit <strong>in</strong> a 36-acre plot<br />
Bert Nordberg<br />
Vestas’ chairman<br />
52<br />
INVEST IN INDIA<br />
53<br />
INVEST IN INDIA
Vestas<br />
Consent to establish is a<br />
critical clearance requirement<br />
to beg<strong>in</strong> construction. We<br />
received it <strong>in</strong> 22 days as<br />
aga<strong>in</strong>st the usual 60<br />
— Clive Turton<br />
President (Asia Pacific), Vestas<br />
tra<strong>in</strong><strong>in</strong>g workshops and annual science-based<br />
events to promote energy conservation and<br />
renewal energy. It is also partner<strong>in</strong>g with the<br />
Skill Council of <strong>India</strong> and is look<strong>in</strong>g to hire<br />
hundreds for the new manufactur<strong>in</strong>g unit.<br />
Accord<strong>in</strong>g to Amar Variawa, the<br />
company’s director of market<strong>in</strong>g and public<br />
affairs, “Vestas has put a strong strategic<br />
focus on <strong>India</strong> because of the ambitious target<br />
of 60,000 MW of w<strong>in</strong>d <strong>in</strong>stallation by 2022.<br />
The new factory is a promise fulfilled, and<br />
I am very proud that it took only 15 months<br />
from when we made a commitment to our<br />
Prime M<strong>in</strong>ister Modi … The factory will expand<br />
Vesta’s footpr<strong>in</strong>t <strong>in</strong> <strong>India</strong>, and reduce lead times<br />
for blade supply, mak<strong>in</strong>g Vestas competitive<br />
<strong>in</strong> <strong>India</strong>. <strong>India</strong>’s future energy mix belongs to<br />
clean energy and the w<strong>in</strong>d energy market look<br />
strong. We will do our best to convert the MoU<br />
<strong>in</strong>to firm and unconditional orders.”<br />
Vestas <strong>India</strong><br />
IN BRIEF<br />
+2000 MW<br />
of <strong>in</strong>stalled<br />
capacity<br />
+320<br />
experienced<br />
service<br />
technicians<br />
380<br />
dedicated Service<br />
<strong>India</strong> employees<br />
SOURCE: VESTAS INDIA<br />
Vestas has put a<br />
strong strategic focus<br />
on <strong>India</strong> because of<br />
the ambitious target<br />
of 60,000 MW of w<strong>in</strong>d<br />
<strong>in</strong>stallation by 2022<br />
— Amar Variawa<br />
Vestas <strong>India</strong><br />
off the Ahmedabad-Rajkot highway. Fifteen<br />
months after the Nordberg-Modi meet<strong>in</strong>g,<br />
the factory began blade production on<br />
March 25, 2017. Accord<strong>in</strong>g to Clive Turton,<br />
president (Asia Pacific), Vestas, “Consent to<br />
establish is a critical clearance requirement<br />
to beg<strong>in</strong> construction. We received it <strong>in</strong> 22<br />
days as aga<strong>in</strong>st the usual 60. Also, power<br />
at the factory site was made available <strong>in</strong> six<br />
months rather than the usual 18 months due<br />
to effective <strong>in</strong>fluence of <strong>Invest</strong> <strong>India</strong> cell of the<br />
Government of <strong>India</strong>.”<br />
The choice of Gujarat is no accident<br />
as it is extremely hospitable to greenfield<br />
<strong>in</strong>vestments. Accord<strong>in</strong>g to fDi Markets,<br />
an onl<strong>in</strong>e database track<strong>in</strong>g cross border<br />
greenfield <strong>in</strong>vestment, Gujarat attracted<br />
massive greenfield FDI of $12.36 billion <strong>in</strong><br />
2015. Maharashtra followed with $8.28<br />
billion. These bus<strong>in</strong>ess-friendly states also are<br />
<strong>in</strong> the forefront of implement<strong>in</strong>g more labour<br />
laws and improvements <strong>in</strong> conditions for<br />
do<strong>in</strong>g bus<strong>in</strong>ess. The fact that Japan’s Prime<br />
M<strong>in</strong>ister Sh<strong>in</strong>zo Abe chose to visit Gujarat to<br />
<strong>in</strong>augurate the Ahmedabad to Mumbai bullet<br />
tra<strong>in</strong> dur<strong>in</strong>g his visit to <strong>India</strong> <strong>in</strong> September<br />
2017 is a tell<strong>in</strong>g commentary on the current<br />
priorities of Japanese and other <strong>in</strong>vestors who<br />
have discovered the charms of <strong>in</strong>vest<strong>in</strong>g <strong>in</strong><br />
this vanguard state.<br />
Vestas at<br />
a glance<br />
<br />
the largest<br />
w<strong>in</strong>d turb<strong>in</strong>e<br />
company <strong>in</strong> the<br />
world<br />
<br />
operates <strong>in</strong><br />
76 countries,<br />
employ<strong>in</strong>g about<br />
21,000 people<br />
<br />
that by 2020<br />
as much as<br />
10 per cent<br />
of the world’s<br />
electricity<br />
consumption<br />
will be met<br />
energy from the<br />
w<strong>in</strong>d<br />
<br />
<strong>in</strong>stallation of<br />
its first turb<strong>in</strong>e<br />
<strong>in</strong> 1979, Vestas<br />
has improved<br />
output 100<br />
times over<br />
SOURCE: VESTAS INDIA<br />
Transform<strong>in</strong>g lives<br />
Illustrative of how FDI changes lives, as<br />
many as 100 white collar and 900 blue collar<br />
operators are now work<strong>in</strong>g <strong>in</strong> the factory that<br />
has already stocked 230 blades <strong>in</strong> the last<br />
seven months. As the jobs were closer to<br />
home, the local community is bound to have<br />
benefitted from the <strong>in</strong>jection of <strong>in</strong>creased<br />
purchas<strong>in</strong>g power. “We have followed<br />
<strong>in</strong>ternational norms <strong>in</strong> build<strong>in</strong>g this factory,<br />
with safety as a priority. It’s all air-conditioned;<br />
the workforce is well-tra<strong>in</strong>ed, 150 of them<br />
<strong>in</strong> our US factories,” says Madhava Krishna<br />
Pokala, Vestas’ vice-president and <strong>India</strong><br />
factory manager. The tra<strong>in</strong>ed resources were<br />
an outcome of the MoU it signed with the Skill<br />
Council for Green Jobs.<br />
Vestas has sought to transform lives<br />
also by br<strong>in</strong>g<strong>in</strong>g about greater awareness and<br />
practice-related changes <strong>in</strong> the neighbour<strong>in</strong>g<br />
community on water and sanitation issues<br />
through <strong>in</strong>fluenc<strong>in</strong>g behavioural change<br />
among 2,000-odd school children and 100<br />
youth. The company has improved sanitation<br />
facilities <strong>in</strong> schools, especially for the girl<br />
child. This outreach has covered five villages<br />
<strong>in</strong> the first year. In education, the Danish<br />
company has sought to improve the quality<br />
of science and mathematics education <strong>in</strong><br />
schools through hands-on methods, teacher<br />
Future growth<br />
Based on the current capacity addition targets,<br />
<strong>India</strong> is forecast to meet 19% of its power<br />
demand from renewable energy sources <strong>in</strong> by<br />
2022. At present, <strong>India</strong>’s w<strong>in</strong>d power generation<br />
+2000MW | W<strong>in</strong>d Turb<strong>in</strong>e Generator <strong>in</strong> <strong>India</strong><br />
Rajasthan<br />
2.25MW<br />
Gujarat<br />
329.85MW<br />
Maharashtra<br />
278.45MW<br />
Karnataka<br />
324.25MW<br />
Kerala<br />
14.25MW<br />
SOURCE: VESTAS INDIA<br />
Andhra Pradesh<br />
10MW<br />
Tamil Nadu<br />
1140.5MW<br />
capacity is around 28,000 MW. <strong>India</strong> needs to<br />
add 5,000-6,000 MW capacity each year <strong>in</strong><br />
com<strong>in</strong>g years to achieve the target of 60,000<br />
MW. In 2016-17, <strong>India</strong> had added around 5,400<br />
MW of w<strong>in</strong>d power generation capacity. After<br />
the recent tariff based bidd<strong>in</strong>g of 1,000 MW<br />
w<strong>in</strong>d power capacities, the government has<br />
planned to auction 4,000 MW capacities <strong>in</strong><br />
2017-18.<br />
Its R&D centre <strong>in</strong> Chennai is already the<br />
largest outside of Denmark. Chennai also<br />
houses its nacelle and hub factory.<br />
Vestas’ Gujarat factory currently has a<br />
capacity of 200 MW and can be easily stepped<br />
up to 600 MW <strong>in</strong> 2-3 years if there an uptake <strong>in</strong><br />
demand and garner a larger share of the 5,000<br />
MW annual market for w<strong>in</strong>d power <strong>in</strong> <strong>India</strong>. It<br />
produces 900 blades a year. Three blades are<br />
<strong>in</strong> fact needed for one w<strong>in</strong>d turb<strong>in</strong>e of 2 MW,<br />
produc<strong>in</strong>g enough electricity for as many as<br />
35 villages. “If needed, we can expand the<br />
factory and double its production. But that<br />
will depend on the work we receive,” added<br />
Variawa. Encourag<strong>in</strong>g policy <strong>in</strong>itiatives of the<br />
government can also make big difference for<br />
the future for w<strong>in</strong>d power generation.<br />
Vestas clearly is an exemplar of a truly<br />
fast-tracked FDI proposal – where <strong>Invest</strong><br />
<strong>India</strong> played an important role – that got off<br />
the ground <strong>in</strong> record time. This is def<strong>in</strong>itely an<br />
achievement at a time when the government<br />
has prioritized secur<strong>in</strong>g FDI <strong>in</strong>flows to<br />
strengthen the <strong>India</strong> growth story. <br />
54<br />
55<br />
INVEST IN INDIA<br />
INVEST IN INDIA
PATHBREAKERS Hitachi<br />
From import<strong>in</strong>g humble table fans to <strong>India</strong> <strong>in</strong><br />
1930s to a head start <strong>in</strong> today’s Internet of Th<strong>in</strong>gs<br />
(IoT) era, the 80-year journey of Hitachi <strong>in</strong> <strong>India</strong><br />
has seen many an important milestone. It has<br />
played an <strong>in</strong>tegral part <strong>in</strong> shap<strong>in</strong>g modern <strong>India</strong><br />
– it supplied steam eng<strong>in</strong>es for tra<strong>in</strong>s that are<br />
still lifeblood of public transportation. It also<br />
supplied turb<strong>in</strong>es for the Bhakra Nangal Dam,<br />
easily the most epoch def<strong>in</strong><strong>in</strong>g of <strong>India</strong>’s first<br />
generation of mega dams.<br />
Today, with a well-established footpr<strong>in</strong>t<br />
<strong>in</strong> <strong>India</strong> through 28 bus<strong>in</strong>esses, Tokyoheadquartered<br />
Hitachi operates <strong>in</strong> diverse<br />
<strong>in</strong>dustrial sectors such as <strong>in</strong>frastructure,<br />
railways, energy, construction mach<strong>in</strong>ery,<br />
healthcare, IT, automotive and payment<br />
services amongst many others.<br />
Each of these verticals touches millions of lives <strong>in</strong> <strong>India</strong><br />
– be it through Hitachi’s railway solutions dedicated towards<br />
enhanc<strong>in</strong>g safety <strong>in</strong> transport and ensur<strong>in</strong>g people reach<br />
their dest<strong>in</strong>ation on time, or <strong>in</strong>frastructure solutions that<br />
contribute to solv<strong>in</strong>g the water supply and management<br />
issues. Hitachi offers GIS Solutions dedicated towards the<br />
benefit of <strong>India</strong>n agriculture and farmers, its enterprise<br />
data provides solutions for Aadhaar and the Employee<br />
Provident Fund. Its IT solutions set up <strong>in</strong>frastructure for<br />
fully digitized e-Sewa Kendras to promote citizen centric<br />
services and e-governance, its payment solutions provide<br />
secure, <strong>in</strong>novative and cost-effective services across<br />
Present <strong>in</strong> <strong>India</strong><br />
<strong>in</strong> as many as<br />
28 sectors,<br />
Hitachi touches<br />
millions of lives<br />
across the<br />
nation through<br />
its verticals<br />
56<br />
INVEST IN INDIA<br />
electronic channels and bank<strong>in</strong>g channel products. Hitachi<br />
looks to be an <strong>in</strong>tegral part of the <strong>India</strong>’s future too, with its<br />
R&D solutions that re-affirm the company’s commitment to<br />
make <strong>India</strong> future ready.<br />
A 10,000-strong staff, spread across multiple<br />
geographies with<strong>in</strong> <strong>India</strong>, tackles <strong>India</strong>’s<br />
rapidly chang<strong>in</strong>g landscape as it responds to<br />
rapid urbanization, large-scale concentration<br />
of people <strong>in</strong> cities, explor<strong>in</strong>g susta<strong>in</strong>able<br />
transportation solutions, efficient supply<br />
and management of water and energy and<br />
creat<strong>in</strong>g stronger security solutions for the<br />
age of the Internet of Th<strong>in</strong>gs (IoT).<br />
“<strong>India</strong> as a country has immense potential<br />
and for the last eight decades Hitachi has<br />
seen tremendous growth and development<br />
fuelled by some extraord<strong>in</strong>ary development<br />
Mak<strong>in</strong>g <strong>India</strong> future ready<br />
Hitachi Automotive Systems,<br />
Chennai, <strong>India</strong><br />
<strong>in</strong> the <strong>in</strong>frastructure space,” says Bharat Kaushal, MD,<br />
Hitachi <strong>India</strong>.<br />
Kaushal stresses that digitalization is all set to <strong>in</strong>fluence<br />
and impact life of every <strong>India</strong>n and because of digitalization,<br />
the society will change even more than we ever imag<strong>in</strong>ed.<br />
“Our strength is the uniqueness and ability to comb<strong>in</strong>e<br />
extensive proficiencies <strong>in</strong> Operational Technology (OT) with<br />
over 50 years of experience <strong>in</strong> Information Technology (IT)<br />
to create novel solutions to social problems.”<br />
‘Collaborative Creation’ with customers through our<br />
advanced Social Innovation Bus<strong>in</strong>ess will help establish<br />
Hitachi as an <strong>in</strong>novation partner for the IoT era, which<br />
will drive the future growth strategy for the organization,<br />
elaborates Kaushal. “Our prowess <strong>in</strong> manufactur<strong>in</strong>g<br />
complemented with digital technologies is enabl<strong>in</strong>g Hitachi<br />
to ga<strong>in</strong> a head start <strong>in</strong> this IoT era and is strategically aligned<br />
to the Make <strong>in</strong> <strong>India</strong> <strong>in</strong>itiative announced by the government<br />
of <strong>India</strong>.”<br />
Relationship on track<br />
Through the Mumbai-Ahmedabad high speed rail project —<br />
a flagship project of bilateral cooperation — Prime M<strong>in</strong>isters<br />
Narendra Modi and Sh<strong>in</strong>zo Abe have succeeded <strong>in</strong> putt<strong>in</strong>g<br />
the relationship on the fast track. The ‘Bullet Tra<strong>in</strong>’ will<br />
create a value cha<strong>in</strong> of high precision eng<strong>in</strong>eer<strong>in</strong>g <strong>in</strong> <strong>India</strong>,<br />
localization of capacities and potentially have a massive<br />
economic impact, and Hitachi is geared up to partner for<br />
this flagship project with the government <strong>in</strong> one way or<br />
other, says Kaushal.<br />
As part of its dream to make <strong>India</strong> as the global<br />
manufactur<strong>in</strong>g hub and ignit<strong>in</strong>g an<br />
ambitious Make <strong>in</strong> <strong>India</strong> <strong>in</strong>itiative, Prime<br />
M<strong>in</strong>ister Modi <strong>in</strong>cepted and supported<br />
the idea of an Asia Africa Growth<br />
Corridor (AAGC) that emerged <strong>in</strong> the jo<strong>in</strong>t<br />
declaration issued by Indo-Japanese<br />
prime m<strong>in</strong>isters <strong>in</strong> November 2016.<br />
From the <strong>India</strong>n perspective, a lot of<br />
<strong>in</strong>vestments can be envisaged under this<br />
<strong>in</strong>itiative, po<strong>in</strong>ts out Kaushal. “Hitachi has<br />
robust manufactur<strong>in</strong>g facilities present<br />
across different geographies <strong>in</strong> <strong>India</strong>. Each<br />
of these facilities have already started<br />
Mak<strong>in</strong>g <strong>in</strong> <strong>India</strong> and deliver<strong>in</strong>g to the World<br />
and Africa is one of the key strategic<br />
countries be<strong>in</strong>g focused upon.”<br />
Social transformation<br />
Hitachi believes <strong>in</strong> address<strong>in</strong>g these<br />
challenges through its Social Innovation<br />
Bus<strong>in</strong>ess, which focuses on resolv<strong>in</strong>g<br />
issues faced by society and customers,<br />
thereby lead<strong>in</strong>g a Social Transformation<br />
and striv<strong>in</strong>g to create a susta<strong>in</strong>able<br />
society. The Hitachi-MGRM venture is<br />
about partner<strong>in</strong>g the government <strong>in</strong><br />
digitally transform<strong>in</strong>g the <strong>India</strong>n society by<br />
provid<strong>in</strong>g citizen lifecycle e-governance. It<br />
has also been offer<strong>in</strong>g solutions to the state<br />
governments for Real Time Governance<br />
that has been designed for promot<strong>in</strong>g<br />
transparency and accountability across<br />
the government policies and beneficiaries.<br />
It monitors department and services and<br />
identifies areas for improvement.<br />
Hitachi is strengthen<strong>in</strong>g its research and<br />
development organization to support the<br />
global development of its Social Innovation<br />
Bus<strong>in</strong>ess. In <strong>India</strong>, Hitachi established<br />
its maiden Research and Development<br />
Centre <strong>in</strong> 2011, and is enhanc<strong>in</strong>g its<br />
operations. The centre conducts research<br />
and development focus<strong>in</strong>g on <strong>in</strong>formation<br />
and telecommunication systems and<br />
social <strong>in</strong>frastructure bus<strong>in</strong>ess.<br />
Hitachi is well equipped and on the<br />
path of partner<strong>in</strong>g with the government<br />
across all its <strong>in</strong>itiatives, says Kaushal.<br />
“With over 100 years of experience <strong>in</strong><br />
Social Innovation Bus<strong>in</strong>ess and hav<strong>in</strong>g<br />
a wide spread presence with 28 group<br />
companies is a testimony to our strong<br />
association with <strong>India</strong>. We envision <strong>India</strong> to<br />
be one of our key growth drivers.” <br />
Bharat Kaushal<br />
MD, Hitachi <strong>India</strong><br />
Focus areas for Hitachi <strong>in</strong> <strong>India</strong>,<br />
spread across various sectors<br />
<br />
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57<br />
INVEST IN INDIA
PATHBREAKERS Fratelli<br />
Fratelli helped put<br />
<strong>India</strong> on the global<br />
w<strong>in</strong>e map. Now<br />
a JV with Boisset<br />
Collection, one of<br />
the biggest French<br />
w<strong>in</strong>emak<strong>in</strong>g groups,<br />
will help it grow<br />
significantly<br />
Brotherhood of w<strong>in</strong>e<br />
Above, left to right:<br />
Alessio Secci,<br />
Arjuns<strong>in</strong>h Mohite-Patil,<br />
Kapil Sekhri,<br />
Piero Masi, founders<br />
of the brand<br />
Right from its <strong>in</strong>ception almost a<br />
decade ago, Fratelli W<strong>in</strong>es has set<br />
itself an ambitious target - to create<br />
a product of truly <strong>in</strong>ternational standard but<br />
one that was made <strong>in</strong> <strong>India</strong> us<strong>in</strong>g centurieslong<br />
Italian w<strong>in</strong>e mak<strong>in</strong>g traditions.<br />
Oenophilists <strong>in</strong> <strong>India</strong>’s rapidly grow<strong>in</strong>g<br />
w<strong>in</strong>e culture would readily agree that the<br />
target has already been met. Fratelli is<br />
<strong>India</strong>’s second-most widely distributed w<strong>in</strong>e.<br />
In fiscal 2017, sales stood at 172,000 9-litre<br />
cases <strong>in</strong> terms of volume and `65 crore <strong>in</strong><br />
terms of value. In the current fiscal year,<br />
the target is to grow 40 per cent <strong>in</strong> volume<br />
and 50 per cent <strong>in</strong> value from the last fiscal.<br />
In 2015, Fratelli forged a partnership<br />
with Premium French w<strong>in</strong>emaker Jean-<br />
Charles Boisset, or JCB (a secondgeneration<br />
w<strong>in</strong>emaker and president of<br />
Boisset Collection, one of the biggest French<br />
w<strong>in</strong>emak<strong>in</strong>g groups), to import some of its<br />
labels <strong>in</strong>to <strong>India</strong>. It also imports about<br />
40 other w<strong>in</strong>e brands, <strong>in</strong>clud<strong>in</strong>g Fortant<br />
and Mull<strong>in</strong>eux.<br />
JCB will create w<strong>in</strong>e blends tailored<br />
for the <strong>India</strong>n market <strong>in</strong> collaboration<br />
with its exclusive <strong>India</strong>n partner, Fratelli.<br />
This will be a first <strong>in</strong> <strong>India</strong> for the privately<br />
held French v<strong>in</strong>tner.<br />
The company is eye<strong>in</strong>g `70 crore this<br />
year, own<strong>in</strong>g to its partnership with JCB.<br />
We believe <strong>India</strong>n consumers do<br />
not have the attachment yet to just one<br />
brand, says Boisset. “The world of w<strong>in</strong>e is<br />
about try<strong>in</strong>g multiple w<strong>in</strong>es. The world of<br />
g<strong>in</strong> or vodka or whiskey is that you follow<br />
the same brand you like. The key is to get<br />
<strong>India</strong> to dr<strong>in</strong>k w<strong>in</strong>e.”<br />
“We have collaborated together<br />
on launch<strong>in</strong>g J’NOON brand of w<strong>in</strong>es.<br />
The brand is owned 50:50 by Fratelli<br />
and Boisset collections,” says Fratelli<br />
V<strong>in</strong>eyards manag<strong>in</strong>g director Kapil<br />
Sekhri. “It is truly a first testimony of<br />
the potential <strong>India</strong>n terroir holds on<br />
world stage. Boisset with its w<strong>in</strong>es<br />
present <strong>in</strong> over 60 countries is known<br />
for quality. Jean Charles epitomized<br />
with Fratelli’s passion to touch new<br />
heights and scale new boundaries on<br />
his maiden visit to <strong>India</strong> last January.<br />
The target is to truly put <strong>India</strong> as a<br />
country <strong>in</strong> radar of w<strong>in</strong>e aficionados!”<br />
The brand will be launched <strong>in</strong> <strong>India</strong> <strong>in</strong><br />
March with a red and white blend.<br />
A remarkable journey<br />
With an <strong>in</strong>itial <strong>in</strong>vestment of `35<br />
crore, Fratelli started <strong>in</strong> 2007. The<br />
company was formed when three sets<br />
of brothers—Kapil and Gaurav Sekhri;<br />
Ranjits<strong>in</strong>h and Arjuns<strong>in</strong>h Mohite-Patil;<br />
Andrea and Alessio Secci and Tuscan<br />
w<strong>in</strong>emaker Piero Masi came together<br />
<strong>in</strong> this venture, delv<strong>in</strong>g <strong>in</strong>to rather<br />
unchartered territory.<br />
In 2010, the first v<strong>in</strong>tage year,<br />
Fratelli (which translates to brothers <strong>in</strong><br />
Italian) produced 30,000 litres of w<strong>in</strong>e.<br />
Look<strong>in</strong>g back, Sekhri says he would not<br />
have entered the w<strong>in</strong>e bus<strong>in</strong>ess if he<br />
had known what it entailed. “It’s just<br />
so damn difficult; requires too much<br />
patience and a lot of capital.” They<br />
stuck to it however, and the results are<br />
today there for everyone to see.<br />
Fratelli directly employs about<br />
500 people <strong>in</strong> the company and the<br />
v<strong>in</strong>eyard, which is spread across 240<br />
acres <strong>in</strong> Akluj, about 300 kilometres<br />
south east of Mumbai. It currently<br />
has more than 20 different k<strong>in</strong>ds of<br />
w<strong>in</strong>es and sells <strong>in</strong> 16 states. Fratelli is<br />
also available <strong>in</strong> the UK, Japan, Italy,<br />
Denmark, South Africa, Australia<br />
and Hong Kong. And for now, the idea<br />
is to cont<strong>in</strong>ue work<strong>in</strong>g without<br />
th<strong>in</strong>k<strong>in</strong>g too much about marg<strong>in</strong>s<br />
and growth plans.<br />
Fratelli’s current <strong>India</strong>n<br />
<strong>in</strong>vestments stand at $10 million.<br />
Sekhri said three-fourths of <strong>India</strong>n<br />
consumption is skewed <strong>in</strong> favour of red<br />
w<strong>in</strong>e, followed by white w<strong>in</strong>e. While<br />
Fratelli’s domestic w<strong>in</strong>es are sold at<br />
`700 to `2,000, <strong>in</strong>ternational brands<br />
start at `1,500 and go up to `5,000.<br />
W<strong>in</strong>e production <strong>in</strong> <strong>India</strong> is<br />
expected to reach 18 million litres<br />
this year and 21 million litres by <strong>2018</strong>,<br />
accord<strong>in</strong>g to an Associated Chambers<br />
of Commerce & Industry of <strong>India</strong> study.<br />
“Clock<strong>in</strong>g a CAGR (compound annual<br />
growth rate) of about 20 per cent,<br />
w<strong>in</strong>e consumption <strong>in</strong> <strong>India</strong> is likely to<br />
reach 22 million litres this year and<br />
about 37 million litres by <strong>2018</strong>…,” the<br />
study said.<br />
“If the market is grow<strong>in</strong>g at 15-20<br />
per cent and Fratelli is grow<strong>in</strong>g about<br />
50 per cent this year, and let’s say<br />
30 per cent the year after, I can’t ask<br />
for more,” says Sekhri. “W<strong>in</strong>e is a lot<br />
more cultural than other alcoholic<br />
beverages, and our aim is to unw<strong>in</strong>d<br />
the w<strong>in</strong>e and make it fun. Right now,<br />
we are focus<strong>in</strong>g on hotels, restaurants<br />
and clubs and have got very good<br />
reviews from them. The sales are <strong>in</strong><br />
s<strong>in</strong>gle digit percentage <strong>in</strong> terms of the<br />
overall pie. We aren’t look<strong>in</strong>g at retail<br />
currently (for <strong>in</strong>ternational brands).<br />
Euromonitor show sales of spirits<br />
will grow at slower than 2 per cent <strong>in</strong><br />
compound annual growth rate (CAGR)<br />
<strong>in</strong> <strong>India</strong> <strong>in</strong> 2015-20 and beer at 5.7 per<br />
cent, while w<strong>in</strong>e will outpace both at<br />
about 15 per cent.<br />
Accord<strong>in</strong>g to the <strong>India</strong> W<strong>in</strong>e Market<br />
Outlook-2021report, <strong>in</strong>ternational w<strong>in</strong>e<br />
traders are <strong>in</strong>creas<strong>in</strong>gly eye<strong>in</strong>g <strong>India</strong> as<br />
an explosive high value market. <strong>India</strong>ns,<br />
compared with consumers <strong>in</strong> western<br />
countries, have traditionally preferred<br />
liquor with a higher percentage of<br />
alcohol, such as whisky. “But chang<strong>in</strong>g<br />
habits of <strong>India</strong>ns <strong>in</strong> dr<strong>in</strong>k<strong>in</strong>g have altered<br />
fortunes of the w<strong>in</strong>e <strong>in</strong>dustry. The<br />
prospect of w<strong>in</strong>e consumption <strong>in</strong> the<br />
country is very positive,” it said.<br />
Sekhri says it will take five years for<br />
Fratelli to become comfortable with free<br />
cash flows, when they can <strong>in</strong>vest more<br />
freely <strong>in</strong> projects that need to grow<br />
<strong>in</strong>organically. Given the rapid growth,<br />
<strong>in</strong> value and perception, Fratelli is on<br />
course to make the best w<strong>in</strong>e, not just<br />
<strong>in</strong> <strong>India</strong>, but possibly the world! <br />
Above: Chardonnay grapes be<strong>in</strong>g harvested at the<br />
v<strong>in</strong>eyard at Akluj; Below: The gently slop<strong>in</strong>g topography<br />
provides a panoramic view of the v<strong>in</strong>eyards<br />
58<br />
59<br />
INVEST IN INDIA<br />
INVEST IN INDIA
PATHBREAKERS<br />
Sagar Defence<br />
Conquer<strong>in</strong>g the last<br />
FRONTIER<br />
Build<strong>in</strong>g unmanned mar<strong>in</strong>e surface vehicles is not<br />
an easy dream to realize. Capta<strong>in</strong> Nikunj Parashar<br />
was to f<strong>in</strong>d that out the hard way when he<br />
attempted realiz<strong>in</strong>g it. Repeated rejections from<br />
various platforms left him disheartened. Till he got a reply<br />
from Make <strong>in</strong> <strong>India</strong> portal ask<strong>in</strong>g how they could help.<br />
A conversation with Uday Munjal, Assistant Vice<br />
President of <strong>Invest</strong> <strong>India</strong>, set a course ahead for Sagar<br />
Defence Eng<strong>in</strong>eer<strong>in</strong>g, Parasher’s company. From then on,<br />
Parashar put his entire faith <strong>in</strong> <strong>Invest</strong> <strong>India</strong>.<br />
“For me, my essential guid<strong>in</strong>g force has been the<br />
<strong>Invest</strong> <strong>India</strong> team support. They believed <strong>in</strong> me and played<br />
the most important role <strong>in</strong> lay<strong>in</strong>g the right path for me,”<br />
he says. Kick-start<strong>in</strong>g Sagar Defence with<strong>in</strong> 30 months of<br />
unwaver<strong>in</strong>g support clearly is one of <strong>Invest</strong> <strong>India</strong>’s f<strong>in</strong>est<br />
<strong>in</strong>terventions <strong>in</strong> the start-up space.<br />
Soon thereafter meet<strong>in</strong>gs were arranged with the<br />
defence m<strong>in</strong>istry, Maharashtra state government officials<br />
and potential customers. As the project belonged to the<br />
niche sector of defence manufactur<strong>in</strong>g, it necessarily<br />
entailed follow<strong>in</strong>g str<strong>in</strong>gent rules and permissions from<br />
the home m<strong>in</strong>istry. The <strong>Invest</strong> <strong>India</strong> team helped expedite<br />
various approvals and was given complete support at the<br />
m<strong>in</strong>istry level.<br />
After exhaustive research, the team provided Nikunj<br />
with an entire list of defence items as part of his model that<br />
would require <strong>in</strong>dustrial license. For three months, meet<strong>in</strong>gs<br />
were arranged with the M<strong>in</strong>istry of Earth Sciences, Naval<br />
Physical and Oceanographic Laboratory, Naval Science and<br />
Technological Laboratory by <strong>Invest</strong> <strong>India</strong> for Sagar Defence<br />
to showcase its model.<br />
With support from <strong>Invest</strong><br />
<strong>India</strong>, local start-up Sagar<br />
Defence Eng<strong>in</strong>eer<strong>in</strong>g launched<br />
its unmanned mar<strong>in</strong>e surface<br />
vehicle with<strong>in</strong> 30 months<br />
Sett<strong>in</strong>g the course<br />
<strong>Invest</strong> <strong>India</strong> also requested the M<strong>in</strong>istry of Defence<br />
for a meet<strong>in</strong>g to discuss Sagar Defence’s model and<br />
presentation. This was received very positively by the<br />
m<strong>in</strong>istry. In its <strong>in</strong>itial phase, Sagar Defence was registered<br />
as a sole proprietorship company. However, <strong>Invest</strong> <strong>India</strong><br />
advised Sagar Defence to register itself as a private limited<br />
company to enable procurement of defence tenders.<br />
Based on this advice, <strong>in</strong> May 2015, a new company,<br />
Sagar Defence Eng<strong>in</strong>eer<strong>in</strong>g Pvt. Ltd was <strong>in</strong>corporated.<br />
Munjal suggested the <strong>in</strong>vestor should attend various<br />
<strong>in</strong>itiatives launched by the Department of Electronics<br />
and Information Technology (DEITY). Sagar Defence was<br />
selected <strong>in</strong> the top 20 for DEITY’s electro park <strong>in</strong>itiative and<br />
appeared for f<strong>in</strong>al selection of Top 10.<br />
The next month, f<strong>in</strong>al trials for Mumbai-based Sagar<br />
Defence products commenced with the <strong>India</strong>n Navy.<br />
Meet<strong>in</strong>gs were then organized with the Maharashtra<br />
government for land allocation. A turn<strong>in</strong>g po<strong>in</strong>t came when<br />
the <strong>India</strong>n Navy decided to <strong>in</strong>duct Sagar Defence’s product<br />
the ‘unmanned boat’ as part of its surveillance device. Sagar<br />
Defence also bagged the tender for another four boats from<br />
the <strong>India</strong>n Navy <strong>in</strong> October 2016.<br />
Today, the company is a pioneer <strong>in</strong> <strong>India</strong> to develop<br />
and manufacture the first-ever <strong>India</strong>n radio-controlled High<br />
Speed Target boat <strong>in</strong> collaboration with <strong>India</strong>n Navy.<br />
W<strong>in</strong>ner of DP World Prize<br />
In April 2016, the M<strong>in</strong>istry of Shipp<strong>in</strong>g announced Sagar<br />
Defence Eng<strong>in</strong>eer<strong>in</strong>g as the w<strong>in</strong>ner of the maiden ‘MIS 2016 –<br />
DP World Prize’ contest which was organized <strong>in</strong> association<br />
Below:<br />
Reliable Smart<br />
KAT USV by Sagar<br />
Defence Eng<strong>in</strong>eer<strong>in</strong>g<br />
Right:<br />
Nikunj Parashar<br />
of Sagar Defence<br />
Eng<strong>in</strong>eer<strong>in</strong>g<br />
receiv<strong>in</strong>g DP World<br />
Prize from Nit<strong>in</strong><br />
Gadkari, M<strong>in</strong>ister of<br />
Road Transport &<br />
Highways of <strong>India</strong><br />
and Rajnath S<strong>in</strong>gh,<br />
Home M<strong>in</strong>ister<br />
What is a UMSV?<br />
The Unmanned Mar<strong>in</strong>e<br />
Surface Vehicle, an unmanned<br />
autonomous ocean robot, is the<br />
essential technology for this<br />
transformation. Sitt<strong>in</strong>g at the<br />
surface, the UMSV is one of the<br />
unmanned system capable of<br />
collect<strong>in</strong>g and communicat<strong>in</strong>g<br />
ocean data, real-time, through<br />
unpredictable conditions.<br />
It connects subsea data and<br />
communicates it to satellites and<br />
land, creat<strong>in</strong>g an ocean network.<br />
<strong>Invest</strong> <strong>India</strong><br />
advised Sagar<br />
Defence to<br />
register itself<br />
as a private<br />
limited company<br />
to enable<br />
procurement of<br />
defence tenders<br />
Right: Sagar<br />
Defence<br />
Eng<strong>in</strong>eer<strong>in</strong>g<br />
UAV- Spectre<br />
with <strong>Invest</strong> <strong>India</strong> and global trade enabler DP World.<br />
Among five f<strong>in</strong>alists who were asked to present their f<strong>in</strong>al<br />
pitches, Sagar Defence was announced the w<strong>in</strong>ner and<br />
awarded with a prize money of `1.5 million by DP World to<br />
support his project.<br />
Today, Sagar Defence Eng<strong>in</strong>eer<strong>in</strong>g has a fully<br />
operational manufactur<strong>in</strong>g plant set-up near Mumbai. Their<br />
activities <strong>in</strong>clude the development of <strong>in</strong>novative technology<br />
for mar<strong>in</strong>e and submar<strong>in</strong>e fields, which provide clients with<br />
solutions rang<strong>in</strong>g from <strong>in</strong>stall<strong>in</strong>g simulation-based tra<strong>in</strong><strong>in</strong>g<br />
systems to develop<strong>in</strong>g and <strong>in</strong>stall<strong>in</strong>g the autopilot controller<br />
‘bra<strong>in</strong>’ of an autonomous vehicle and carry<strong>in</strong>g out sea trials.<br />
The company is look<strong>in</strong>g to play its role <strong>in</strong> shap<strong>in</strong>g a ‘Digital<br />
Ocean’. It believes that unmanned system technology will<br />
not only save time and money but also human lives <strong>in</strong> time<br />
to come. It imag<strong>in</strong>es this ocean network connect<strong>in</strong>g billions<br />
of sensors, manned and unmanned systems, and satellites<br />
above. A place where data is available on demand, around<br />
the clock.<br />
The future looks bright for the company, which plans<br />
to turn its exist<strong>in</strong>g facility <strong>in</strong>to a larger state-of-the-art<br />
unmanned system manufactur<strong>in</strong>g unit, which will not only<br />
produce systems for <strong>India</strong>, but also export products. <br />
60<br />
INVEST IN INDIA<br />
61<br />
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SMART TEAM<br />
SMART STATS<br />
<strong>Invest</strong> <strong>India</strong> was given the<br />
national responsibility for w<strong>in</strong>n<strong>in</strong>g<br />
FDI for <strong>India</strong> — <strong>Invest</strong>ment<br />
Promotion and Facilitation.<br />
W<strong>in</strong>n<strong>in</strong>g <strong>in</strong>vestment for a country - <strong>in</strong>vestment<br />
promotion & facilitation - is a long-term<br />
strategic activity. It requires clear and<br />
consistent strategies implemented over many years, with<br />
active support of and the adequate resourc<strong>in</strong>g from the<br />
Government. An effective <strong>Invest</strong>ment promotion Agency<br />
(IPA) is cricital to attract transfomational Foreign Direct<br />
<strong>Invest</strong>ment (FDI), accord<strong>in</strong>g to World Bank and UNCTAD.<br />
World’s Most<br />
Awarded IPA<br />
[2015-2017]<br />
Employees<br />
with degrees<br />
from premier<br />
universities<br />
such as IIMs, IITs<br />
and Top Global<br />
Institutes<br />
Figur<strong>in</strong>g out INDIA<br />
<strong>India</strong>'s economy is the fastest grow<strong>in</strong>g of the large economies of<br />
the world, a clear signal that foreign <strong>in</strong>vestors are tak<strong>in</strong>g long-term<br />
bets on the <strong>India</strong>n economy. A look how the numbers read:<br />
CUMMULATIVE<br />
FDI INFLOWS<br />
$194<br />
Billion<br />
FY15 to September 2017<br />
SOURCE: INVEST INDIA<br />
$83 billion<br />
FDI <strong>in</strong> the pipel<strong>in</strong>e<br />
7,67,000<br />
Indicated Potential Employment<br />
Query Analysis<br />
QUERIES RECEIVED FROM<br />
115<br />
Countries<br />
32<br />
States & UTs<br />
47<br />
Sectors<br />
SOURCE: INVEST INDIA<br />
Department of Industrail Policy & Promotion (DIPP)<br />
is entrusted with the task of formulation of FDI policy,<br />
monitor<strong>in</strong>g of Ease of Do<strong>in</strong>g Bus<strong>in</strong>ess reforms and<br />
<strong>Invest</strong>ment Promotion and Facilitation. On 28 th August 2009,<br />
the Cab<strong>in</strong>et approved DIPP’s proposal to set-up <strong>Invest</strong> <strong>India</strong>,<br />
under Section 25 of the Companies Act 1956.<br />
62<br />
INVEST IN INDIA<br />
63<br />
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SMART STATS<br />
Cont<strong>in</strong>uous Enhancement<br />
<strong>in</strong> Global Benchmarks<br />
Strong<br />
Political<br />
Will<br />
Clear<br />
National<br />
Vision<br />
Focus<br />
on<br />
Execution<br />
Ease of<br />
do<strong>in</strong>g bus<strong>in</strong>ess,<br />
<strong>2018</strong><br />
42 places<br />
s<strong>in</strong>ce 2015<br />
(100/190)<br />
WORLD BANK<br />
Global<br />
Innovation,<br />
2017<br />
21 places<br />
s<strong>in</strong>ce 2015<br />
(60/127)<br />
CORNELL, INSEAD, WIPO<br />
Greenfield<br />
1 st Rank<br />
FDI Rank<strong>in</strong>g<br />
2016<br />
Global<br />
Competitiveness<br />
Index, 2017-18<br />
42 places<br />
s<strong>in</strong>ce 2014<br />
(40/137)<br />
WEF<br />
Logistics<br />
Performance<br />
Index, 2016<br />
19 places<br />
s<strong>in</strong>ce 2014<br />
(35/160)<br />
WORLD BANK<br />
Moody’s<br />
Rat<strong>in</strong>g Upgrade,<br />
Nov 2017<br />
First upgrade<br />
<strong>in</strong> 14 years<br />
outlook changed<br />
from stable to positive<br />
MOODY’S<br />
Growth,<br />
Innovation and<br />
Leadership<br />
Rank<strong>in</strong>g, 2015<br />
(1/100)<br />
FROST AND SULLIVAN<br />
64<br />
INVEST IN INDIA
FUTURE READY Ecosystem<br />
<strong>India</strong> on a<br />
The start-up ecosystem is<br />
f<strong>in</strong>ally com<strong>in</strong>g <strong>in</strong>to its own with<br />
hungry entrepreneurs, aided by<br />
a slew of policy <strong>in</strong>itiatives and<br />
confident <strong>in</strong>vestors<br />
Start-up Overdrive<br />
In a recent survey, a whopp<strong>in</strong>g 83 per cent of <strong>India</strong>n<br />
respondents said they would love to set up their<br />
own bus<strong>in</strong>esses. Not just that, 56 per cent of them,<br />
the highest among respondents from 34 countries,<br />
said they were consider<strong>in</strong>g quitt<strong>in</strong>g their current job<br />
to do so. If proof was needed of <strong>India</strong>ns be<strong>in</strong>g bitten<br />
by the start-up bug, this is it. For well over a decade now,<br />
<strong>India</strong> has seen a surge <strong>in</strong> start-up activity transform<strong>in</strong>g the<br />
bus<strong>in</strong>ess scene <strong>in</strong> the country.<br />
In 2016, <strong>India</strong> earned the dist<strong>in</strong>ction of be<strong>in</strong>g the third<br />
largest start-up ecosystem <strong>in</strong> the world, next only to the<br />
US and UK and ahead of Ch<strong>in</strong>a and Israel, and cont<strong>in</strong>ued to<br />
ma<strong>in</strong>ta<strong>in</strong> the position <strong>in</strong>to 2017. An impressive 1,000 new<br />
tech start-ups were added to the <strong>India</strong>n start-up ecosystem,<br />
tak<strong>in</strong>g the total to 5,000-5,200 <strong>in</strong> 2017, accord<strong>in</strong>g to<br />
the latest study by apex IT <strong>in</strong>dustry body NASSCOM and<br />
consultancy Z<strong>in</strong>nov. It is predicted this number will cross<br />
11,000 by 2020 account<strong>in</strong>g for over 250,000 jobs, up from<br />
the 100,000 now.<br />
Start-up Hotspots<br />
The traditional <strong>in</strong>dustrial clusters of the National Capital<br />
Region (NCR), Mumbai and Bangalore account for 70%<br />
of the start-ups <strong>in</strong> the country. However, cities such as<br />
Hyderabad, Pune and Chennai, which currently account for<br />
20% of the start-ups <strong>in</strong> the country, are now attract<strong>in</strong>g a<br />
larger share of the new start-ups. Some states such as<br />
Telangana have pushed the pedal on this. S<strong>in</strong>ce Prime<br />
M<strong>in</strong>ister Narendra Modi announced the Startup <strong>India</strong>n<br />
Action Plan <strong>in</strong> January 2016, 15 states have announced<br />
their own policies, tak<strong>in</strong>g advantage of the fillip that central<br />
policies have provided to the start-up movement.<br />
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INVEST IN INDIA<br />
67<br />
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Ecosystem<br />
Distribution of <strong>India</strong>n Start-ups by Cities<br />
<strong>India</strong>’s Top Funded Start-ups – H1 2017<br />
70%<br />
RANK COMPANY<br />
FUNDING INVESTORS<br />
3 (%)<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
0<br />
Overseas<br />
Aspirants<br />
<br />
Hyderabad<br />
Chennal Pune<br />
200<br />
Emergents<br />
Start-up <strong>India</strong> Action Plan<br />
2017 can be termed as the watershed year for the startup<br />
ecosystem as various policy <strong>in</strong>itiatives are beg<strong>in</strong>n<strong>in</strong>g to<br />
make tangible impact. Prom<strong>in</strong>ent among these was the<br />
redef<strong>in</strong>ition of start-ups, announced <strong>in</strong> 2016, extend<strong>in</strong>g<br />
eligibility for benefits from the previous five to seven years<br />
(10 years for biotechnology start-ups). The new policy also<br />
did away with the need for a letter of recommendation<br />
from an <strong>in</strong>dustry association or an <strong>in</strong>cubator for start-ups<br />
to be recognized to avail the benefits.<br />
Start-up Action Plan - Salient Features<br />
1. Compliance regime based on<br />
self-certification<br />
2. Startup <strong>India</strong> Hub as a s<strong>in</strong>gle po<strong>in</strong>t<br />
of contact for startup ecosystem<br />
3. Simplified startup process –<br />
registration <strong>in</strong> a day, clearances<br />
through a mobile app/portal<br />
4. Patent protection – clear IPR and<br />
commercialization process<br />
5. Funds of Funds with a corpus of<br />
`10,000 crore<br />
6. Credit Guarantee Fund of<br />
`500 crore per year adm<strong>in</strong>istered<br />
through a National Credit<br />
Guarantee Trust Company<br />
Mumbai<br />
Number of Start-ups<br />
Leaders<br />
Delhi-NCR<br />
Bengaluru<br />
400 600 800 1000 1200 1400 1600<br />
7. Exemption of all startups and<br />
<strong>in</strong>cubators from Capital Ga<strong>in</strong>s Tax<br />
8. Income Tax exemption for startups<br />
for three years<br />
9. Tax exemption on <strong>in</strong>vestments above<br />
Fair Market Value<br />
10. Start-up fests – Innovation Core<br />
Programmes <strong>in</strong> 500,000 schools and<br />
annual Incubator Grand Challenge<br />
11. Launch of Atal Innovation Mission<br />
12. 35 new <strong>in</strong>cubators <strong>in</strong> <strong>in</strong>stitutions on<br />
PPP model and 31 new Innovation<br />
Centers at national Institutes<br />
13. Seven new research parks at IITs, IISc<br />
at an <strong>in</strong>vestment of `100 crore each<br />
The most promis<strong>in</strong>g move was the announcement<br />
of the `10,000 crore ($1.54 billion) Fund of Funds (FFS)<br />
to provide easy f<strong>in</strong>ance to <strong>in</strong>novation-led start-ups. The<br />
FFS, be<strong>in</strong>g managed by the Small Industries Bank of <strong>India</strong><br />
(SIDBI), will <strong>in</strong>vest <strong>in</strong> SEBI registered Alternative <strong>Invest</strong>ment<br />
Funds (AIF)s which will, <strong>in</strong> turn, <strong>in</strong>vest <strong>in</strong> the start-ups. As<br />
of August, a commitment to the tune of `623 crore ($93<br />
million) to 17 AIFs has already been made while 67 startups<br />
have received fund<strong>in</strong>g through these AIFs, accord<strong>in</strong>g to<br />
a DIPP status report.<br />
SOURCE: NASSCOM<br />
14. Five new bio clusters, 50 new<br />
bio <strong>in</strong>cubators, 150 tech transfer<br />
offices and 20 bio connect offices<br />
to promote entrepreneurship <strong>in</strong><br />
biotechnology<br />
15. Innovation focused programs for<br />
students<br />
16. Panel of facilitators to provide<br />
legal support and assist <strong>in</strong> fil<strong>in</strong>g<br />
of patent application<br />
17. 80 per cent rebate on fil<strong>in</strong>g<br />
patent applications by startups<br />
18. Relaxed norms of public<br />
procurement for startups<br />
19. Faster exits for startups<br />
<br />
<strong>in</strong>vestments of $1.4 billion each<br />
<br />
<br />
<br />
<br />
month of any year<br />
Deal Activity<br />
Accord<strong>in</strong>g to deal track<strong>in</strong>g firm Tracxn, <strong>in</strong> the first n<strong>in</strong>e<br />
months of 2017, over $7.4 billion have already been <strong>in</strong>vested<br />
<strong>in</strong> <strong>India</strong>n start-ups, with ticket sizes go<strong>in</strong>g up significantly<br />
even though deal volumes were down compared to<br />
previous years. If private equity <strong>in</strong>vestments are <strong>in</strong>cluded,<br />
the figure swells to a whopp<strong>in</strong>g $17.6 billion <strong>in</strong> the same<br />
period, accord<strong>in</strong>g to Venture Intelligence, which tracks PE-<br />
VC <strong>in</strong>vestments <strong>in</strong> the country. The year kicked off with<br />
two mega <strong>in</strong>vestments of $1.4 billion each <strong>in</strong> Flipkart and<br />
PayTm by Softbank and Tencent respectively, the first time<br />
that two start-ups have raised over a billion <strong>in</strong> the first of<br />
any year. In fact, there were reports of cab aggregator Ola<br />
conclud<strong>in</strong>g a $2 billion fundrais<strong>in</strong>g from Japanese Softbank<br />
and Ch<strong>in</strong>ese Internet giant Tencent recently.<br />
At the same time, <strong>in</strong>terest <strong>in</strong> smaller <strong>India</strong>n start-ups<br />
has cont<strong>in</strong>ued. Fledgl<strong>in</strong>g start-ups are garner<strong>in</strong>g good<br />
<strong>in</strong>terest, especially <strong>in</strong> f<strong>in</strong>tech, healthcare, and ecommerce.<br />
Edtech and hyperlocal also saw some traction <strong>in</strong> the first<br />
half of the year. Established VCs such as ACCEL Partners<br />
($400 million), IDG Ventures ($200 million) and Kalaari<br />
1 Paytm $1.4B Softbank Group<br />
2 Flipkart $1.4B Tencent, Microsoft, eBay,<br />
Naspers<br />
3 Ola $404M Falcon Capital, SoftBank<br />
Group<br />
4 ReNew Power Ventures $200M JERA<br />
5 Paytm Mall $200M Alibaba Group; SAIF<br />
Partners<br />
6 Greenko Group $155M GIC; Abu Dhabi<br />
<strong>Invest</strong>ment Authority<br />
7 Delhivery $138M Fosun International;<br />
The Carlyle Group, The<br />
Carlyle Group; Tiger<br />
Global Management<br />
8 Hero Future Energies $125M IFC<br />
9 Spandana Sphoorty F<strong>in</strong>ancial Limited $100M Kedaara Capital<br />
<strong>Invest</strong>ment Managers;<br />
Ontario Teachers’<br />
Pension Plan<br />
10 Swiggy $80M Naspers; Accel Partners;<br />
SAIF Partners; Bessemer<br />
Ventures, Harmony<br />
Partners; Norwest<br />
Venture Partners<br />
Capital ($20 million) decided to set up exclusive <strong>India</strong>focused<br />
seed stage funds, clearly show<strong>in</strong>g their confidence<br />
<strong>in</strong> prospects from the <strong>India</strong>n stable of start-ups.<br />
<strong>Invest</strong>or exits is another measure of 0the maturity of<br />
any start-up ecosystem. There have been 57 exits via IPOs<br />
and acquisitions <strong>in</strong> 2017 so far, accord<strong>in</strong>g to Tracxn. This<br />
has been accompanied by consolidation through mergers<br />
and alliances.<br />
Recent examples <strong>in</strong>clude MakeMyTrip’s merger with<br />
Ibibo, Flipkart’s acquisition of eBay <strong>India</strong>, Hous<strong>in</strong>g.com’s<br />
acquisition by PropTiger, and Quikr’s acquisition of Babajob<br />
and Zimmber. The heightened level of cash<strong>in</strong>g out will also<br />
offer encouragement to potential <strong>in</strong>vestors that are look<strong>in</strong>g<br />
for safe bets for the long term.<br />
While the last ten-odd years could be termed as the<br />
formative period for the ecosystem, 2017 was def<strong>in</strong>itively<br />
a milestone year for the <strong>India</strong>n start-up ecosystem. The<br />
unicorns are consolidat<strong>in</strong>g their positions, while fledgl<strong>in</strong>gs<br />
are mushroom<strong>in</strong>g with more and more confidence – all<br />
supported by <strong>in</strong>ternational <strong>in</strong>vestor confidence and a<br />
conducive policy environment. <br />
SOURCE: TRACXN<br />
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FUTURE READY Ecosystem<br />
The Team To Go To<br />
The Government of <strong>India</strong> launched their flagship<br />
<strong>in</strong>itiative, Startup <strong>India</strong> Hub, on January 16,<br />
2016 to nurture the wave of <strong>in</strong>novation and new<br />
bus<strong>in</strong>esses <strong>in</strong> the country. Along with benefits<br />
such as <strong>in</strong>come tax exemptions, patent and trademark fee<br />
rebates, creation of <strong>in</strong>cubation <strong>in</strong>frastructure etc, Prime<br />
M<strong>in</strong>ister Narendra Modi also appo<strong>in</strong>ted a team, Startup<br />
<strong>India</strong> Hub, to act as the s<strong>in</strong>gle po<strong>in</strong>t of contact for the entire<br />
start-up ecosystem, enable exchange of knowledge among<br />
various stakeholders, and facilitate access to fund<strong>in</strong>g.<br />
The 20+ member team is hosted under <strong>Invest</strong> <strong>India</strong>, the<br />
national <strong>in</strong>vestment promotion and facilitation agency of<br />
the Government. The Hub provides mass facilitation to<br />
all stakeholders of the start-up ecosystem – <strong>in</strong>vestors,<br />
<strong>in</strong>cubators, mentors, government agencies and <strong>in</strong>dustry<br />
partners – through a toll-free helpl<strong>in</strong>e, email<br />
and twitter.<br />
The team has handled a total of more than<br />
70,000 queries s<strong>in</strong>ce their launch <strong>in</strong> April 2016.<br />
The queries relate to f<strong>in</strong>ancial assistance,<br />
<strong>in</strong>cubation support, IPR management, benefits<br />
offered and the recognition process under<br />
Startup <strong>India</strong> Hub. The Hub aims for quick<br />
query resolution that is critical for nurtur<strong>in</strong>g<br />
the ecosystem for start-ups.<br />
The Hub has also provided bespoke, oneon-one<br />
facilitation to various stakeholders of the ecosystem.<br />
The team handholds entrepreneurs, understand<strong>in</strong>g their<br />
bus<strong>in</strong>ess and challenges faced by them, and assists them<br />
<strong>in</strong> tak<strong>in</strong>g their bus<strong>in</strong>ess forward. For idea-stage start-ups,<br />
As a s<strong>in</strong>gle<br />
po<strong>in</strong>t of<br />
contact for<br />
<strong>India</strong>’s start-up<br />
ecosystem,<br />
Startup <strong>India</strong><br />
Hub plays a<br />
crucial role<br />
<strong>in</strong> br<strong>in</strong>g<strong>in</strong>g<br />
stakeholders<br />
together<br />
this could be support <strong>in</strong> the form of <strong>in</strong>cubation, patent<br />
application, and bus<strong>in</strong>ess plan creation. For start-ups <strong>in</strong><br />
the later stages, support could be relevant government<br />
schemes, stakeholder meet<strong>in</strong>gs, public procurement and<br />
manufactur<strong>in</strong>g support.<br />
Some of these success stories <strong>in</strong>clude:<br />
Anvay Technosolutions<br />
A cybercrime <strong>in</strong>vestigation tra<strong>in</strong><strong>in</strong>g provider, it has a call<br />
details records (CDR) analysis application for w<strong>in</strong>dows<br />
which is used by police and <strong>in</strong>vestigation agencies. Startup<br />
<strong>India</strong> Hub has facilitated their <strong>in</strong>teraction with the Deputy<br />
Commissioner of Police and assisted <strong>in</strong> obta<strong>in</strong><strong>in</strong>g sanction<br />
of `3,75,000 under the Nirbhaya Fund (under the M<strong>in</strong>istry<br />
of Home Affairs).<br />
Hyperloop <strong>India</strong><br />
Hyperloop <strong>India</strong> is represent<strong>in</strong>g <strong>India</strong> at<br />
the Hyperloop One Global challenge, open<br />
source pod prototype design competition for<br />
commercializ<strong>in</strong>g hyperloop transportation<br />
technology across the globe. Startup <strong>India</strong><br />
Hub facilitated their <strong>in</strong>teraction with M<strong>in</strong>istry<br />
of Road Transport & Highways and H<strong>in</strong>dustan<br />
www.startup<strong>in</strong>dia.gov.<strong>in</strong><br />
Aeronautics Limited (HAL), assisted through a<br />
crowdfund<strong>in</strong>g campaign.<br />
Student <strong>in</strong>novator<br />
A 16-year student from Mumbai has created a function<strong>in</strong>g<br />
computer us<strong>in</strong>g e-waste. He refurbishes and reassembles<br />
e-waste (currently sourced from his father’s scrap<br />
deal<strong>in</strong>g bus<strong>in</strong>ess) to create these computers. Startup<br />
<strong>India</strong> Hub consulted e-waste scientist of Central Pollution<br />
Control Board (CPCB) and facilitated a meet<strong>in</strong>g with the<br />
Maharashtra Pollution Control Board (MPCB). As a result, he<br />
is now <strong>in</strong> the process of becom<strong>in</strong>g a recognized ‘refurbisher’<br />
under MPCB.<br />
To scale up these efforts, the erstwhile Commerce<br />
and Industry M<strong>in</strong>ister, Nirmala Sitharaman, announced the<br />
launch of Startup <strong>India</strong> Virtual Hub on June 19, 2017. This is<br />
an onl<strong>in</strong>e platform for all stakeholders of the entrepreneurial<br />
ecosystem <strong>in</strong> <strong>India</strong> to discover, connect and engage with<br />
each other. The portal hosts start-ups, <strong>in</strong>vestors, funds,<br />
mentors, academia, <strong>in</strong>cubators, accelerators, corporates,<br />
government bodies and others.<br />
Startup <strong>India</strong> Virtual Hub is a dynamic and<br />
<strong>in</strong>teractive platform that enables:<br />
<br />
schemes and grants for start-ups launched by various<br />
government departments and curated based on<br />
relevant stakeholders and sectors.<br />
<br />
programs for potential entrepreneurs to get their<br />
ventures to the next level through structured learn<strong>in</strong>g.<br />
<br />
<strong>in</strong>cubators and accelerators for start-ups from their<br />
dashboard, based on their sector, stage and location<br />
preference.<br />
The Hub offers a repository of knowledge and services<br />
that equip start-ups with technical know-how. It provides<br />
various tools that help with scal<strong>in</strong>g up of bus<strong>in</strong>ess, draft<strong>in</strong>g a<br />
pitch deck and prepar<strong>in</strong>g legal contracts. Many corporations<br />
are now offer<strong>in</strong>g pro bono services to entrepreneurs on the<br />
Hub, some of which <strong>in</strong>clude Amazon Web Services, Zoho,<br />
Applop, Vakilsearch, Lawyered, Profitbooks, XLPAT, among<br />
others. The Hub also hosts a curated list of <strong>in</strong>dustryspecific<br />
market research reports from lead<strong>in</strong>g <strong>in</strong>dustry<br />
experts, newsfeed, a discussion forum, blogs, events and<br />
competitions. It has got on board over 150 enablers and<br />
10,000 <strong>in</strong>dividuals and start-ups <strong>in</strong> less than four months.<br />
Startup <strong>India</strong> has partnered with various corporate<br />
partners provid<strong>in</strong>g a bridge between <strong>in</strong>dustry and start-ups,<br />
such as Amazon Launchpad, UberExchange, Facebook,<br />
<strong>India</strong> Tech Bridge and Ambuja Neotia Incubator Setup.<br />
The Start-up <strong>India</strong> team is also actively <strong>in</strong>volved with<br />
provid<strong>in</strong>g policy formulation, handhold<strong>in</strong>g, facilitation<br />
and knowledge support to eight states – Odisha, Assam,<br />
Punjab, Uttar Pradesh, Maharashtra, Uttarakhand,<br />
Kerala and Karnataka. The scope of services provided to<br />
state governments <strong>in</strong>clude policy formulation, operat<strong>in</strong>g<br />
guidel<strong>in</strong>es, support<strong>in</strong>g a digital ecosystem, handhold<strong>in</strong>g,<br />
facilitation and knowledge support. 15 states have a startup<br />
policy <strong>in</strong> place, out of which 11 have formulated the<br />
policy after the launch of the Startup <strong>India</strong> Hub <strong>in</strong>itiative. <br />
International <strong>in</strong>itiatives<br />
have been another key focus<br />
area for Startup <strong>India</strong> Hub,<br />
some of which <strong>in</strong>clude:<br />
Sweden<br />
<strong>Invest</strong> <strong>India</strong> has signed an MoU with Founders<br />
Alliance, a network for Sweden’s lead<strong>in</strong>g<br />
entrepreneurs, to launch Sweden <strong>India</strong> Startup<br />
Sambandh (SISS) Hub. This onl<strong>in</strong>e Hub provides<br />
go-to-market guide for Swedish entrepreneurs<br />
look<strong>in</strong>g to enter <strong>India</strong> and one-to-one facilitation.<br />
Portugal<br />
The onl<strong>in</strong>e platform, <strong>India</strong> Portugal Startup Hub<br />
(IPSH), enables start-ups, <strong>in</strong>vestors, <strong>in</strong>cubators<br />
and aspir<strong>in</strong>g entrepreneurs of both countries to<br />
connect with each other and provide them with the<br />
right resources to expand and become globalized.<br />
This <strong>in</strong>itiative was jo<strong>in</strong>tly launched by the prime<br />
m<strong>in</strong>isters of both countries <strong>in</strong> January 2017.<br />
Above: Prime M<strong>in</strong>isters Narendra Modi and Antonio Costa<br />
at the Necessidades Palace<br />
Israel<br />
A bilateral <strong>in</strong>novation challenge for start-ups, <strong>India</strong><br />
Israel Entrepreneurship Bridge was launched <strong>in</strong> July<br />
2017 by the prime m<strong>in</strong>isters of <strong>India</strong> and Israel. The<br />
challenge is focused on susta<strong>in</strong>able solutions <strong>in</strong><br />
agriculture, digital health and water with an aim at<br />
leverag<strong>in</strong>g the technological strengths of Israel and<br />
the wider market access of <strong>India</strong>.<br />
The Hub works as a nodal agency to<br />
aggregate the fragmented start-up community<br />
and create an <strong>in</strong>tegrated ecosystem. If you are a<br />
start-up look<strong>in</strong>g for assistance or a stakeholder<br />
look<strong>in</strong>g to engage more with the ecosystem, do get<br />
<strong>in</strong> touch with them!<br />
70<br />
INVEST IN INDIA<br />
71<br />
INVEST IN INDIA
FUTURE READY Ecosystem<br />
Ethereal Mach<strong>in</strong>es<br />
Enabl<strong>in</strong>g entrepreneurship through eng<strong>in</strong>eer<strong>in</strong>g<br />
Signzy<br />
Empowers regulatory processes us<strong>in</strong>g Artificial Intelligence<br />
Kaushik Mudda and Nav<strong>in</strong> Ja<strong>in</strong> (Founders)<br />
Ankur Pandey, Ankt Ratan, Arpit Ratan (Founders)<br />
Vision<br />
How to enable entrepreneurs to create more products<br />
with the aid of 3D pr<strong>in</strong>t<strong>in</strong>g?<br />
Solution<br />
The <strong>in</strong>vention of a mach<strong>in</strong>e that is capable<br />
of perform<strong>in</strong>g both subtractive and additive<br />
manufactur<strong>in</strong>g techniques <strong>in</strong> order to help the<br />
<strong>in</strong>dustry create sturdier components to be<br />
<strong>in</strong>corporated <strong>in</strong> mach<strong>in</strong>es/robots. This helps young<br />
entrepreneurs <strong>in</strong> realiz<strong>in</strong>g their prototype without<br />
<strong>in</strong>curr<strong>in</strong>g heavy capital costs and lessen the time <strong>in</strong><br />
realiz<strong>in</strong>g these prototypes.<br />
Game Chang<strong>in</strong>g Strategy<br />
Shr<strong>in</strong>k<strong>in</strong>g large scale technology to make it available<br />
for the everyday eng<strong>in</strong>eer and the consumer with<br />
the aim of mak<strong>in</strong>g mach<strong>in</strong>es capable of earn<strong>in</strong>g a<br />
livelihood for each customer.<br />
Current scale of bus<strong>in</strong>ess and its<br />
impact on the <strong>in</strong>dustry and society<br />
Launch<strong>in</strong>g three products: A 5 axis CNC Router, a 3D<br />
pr<strong>in</strong>ter and the Ethereal Halo which comb<strong>in</strong>es both<br />
the additive and subtractive manufactur<strong>in</strong>g processes.<br />
An example of a possible impact is described as:<br />
Excavat<strong>in</strong>g grooves out of a work piece on a<br />
simultaneous 5-axis mach<strong>in</strong>e and be<strong>in</strong>g able to 3-D<br />
pr<strong>in</strong>t consecutively <strong>in</strong> 5 axes without hav<strong>in</strong>g to adjust<br />
the fixture or change the function<strong>in</strong>g head; opens up<br />
an ocean of possibilities for consumers, creators and<br />
manufacturers.<br />
The Halo solves an array of problems for the<br />
everyday eng<strong>in</strong>eer, small, mid-scale and to-be<br />
entrepreneurs. The capital <strong>in</strong>vestment that is required<br />
to procure a 5-axis mach<strong>in</strong>e or the extortionate<br />
mach<strong>in</strong><strong>in</strong>g charges leaves the reach of these<br />
mach<strong>in</strong>es fettered. An undemand<strong>in</strong>g mach<strong>in</strong><strong>in</strong>g<br />
job can result <strong>in</strong> a hole be<strong>in</strong>g drilled through one’s<br />
pocket; snowball<strong>in</strong>g <strong>in</strong>to either discourag<strong>in</strong>g a<br />
maker <strong>in</strong> try<strong>in</strong>g out a certa<strong>in</strong> prototype or end<strong>in</strong>g<br />
up <strong>in</strong> swell<strong>in</strong>g the costs for the end-user. The Halo<br />
makes it possible to replicate the capabilities of a<br />
large factory on your desktop.<br />
Interest<strong>in</strong>g Factoids<br />
<br />
Show Best of Innovation Award <strong>2018</strong><br />
<br />
<br />
Entrepreneurship made a documentary on<br />
ethereal.<br />
L<strong>in</strong>k: https://www.youtube.com/<br />
watch?v=pHbs1GqRA94<br />
<br />
to break even” depict<strong>in</strong>g the impact caused by<br />
ethereal and the struggles undertaken while<br />
sett<strong>in</strong>g up the firm. It can be found on https://<br />
www.amazon.<strong>in</strong>/63-Rejections-KAUSHIK-<br />
MUDDA/dp/935201572X<br />
Quote<br />
<br />
Start Up <strong>India</strong> have helped aspir<strong>in</strong>g entrepreneurs<br />
and entrepreneurs <strong>in</strong> their early stages and<br />
the boost is a massive one and I see a much<br />
blossom<strong>in</strong>g situation right now then it was say a<br />
<br />
Department of Industrial Policy and Promotion and<br />
have benefitted by gett<strong>in</strong>g tax exemptions and legal<br />
patent facilitators under these programmes,”<br />
Kaushik Mudda<br />
Vision<br />
How can people from all corners of the world build<br />
trust and do bus<strong>in</strong>ess completely digitally?<br />
The world is go<strong>in</strong>g digital and with it the barriers<br />
of movement across countries are reduc<strong>in</strong>g. This<br />
also means that cross-border <strong>in</strong>teractions are<br />
now simpler from an operation po<strong>in</strong>t of view. But<br />
regulatory barriers are as high as they ever were<br />
and those walls are not crumbl<strong>in</strong>g.<br />
Solution<br />
Signzy uses Artificial Intelligence (AI) and<br />
Blockcha<strong>in</strong> to create a global digital trust platform.<br />
Us<strong>in</strong>g AI, this platform one can perform a KYC<br />
process adher<strong>in</strong>g to the local regulations, <strong>in</strong>clud<strong>in</strong>g<br />
video, document verifications and negative list<br />
checks. This is then stored on a public blockcha<strong>in</strong>,<br />
allow<strong>in</strong>g regulatory or risk audit without<br />
compromis<strong>in</strong>g privacy.<br />
A comb<strong>in</strong>ation of technology and access<br />
controls, Signzy is able to create a ‘global trust<br />
protocol’ that is digital, and still acceptable to<br />
local regulator.<br />
Game Chang<strong>in</strong>g Strategy<br />
The strategy to take an application programme<br />
<strong>in</strong>terface (API) based approach has worked.<br />
It allows for Signzy’s solution to effectively<br />
<strong>in</strong>tegrate, with the consumers pay<strong>in</strong>g only at the<br />
po<strong>in</strong>t of consumption. Thus S<strong>in</strong>gzy is able to take<br />
technological risk as there is no large upfront cost.<br />
At the same time, they are also able to easily<br />
<strong>in</strong>tegrate <strong>in</strong> various tech systems.<br />
Current scale of bus<strong>in</strong>ess and its<br />
impact on the <strong>in</strong>dustry and society<br />
Signzy is <strong>in</strong>to second year of operation and<br />
has worked with 115 f<strong>in</strong>ancial <strong>in</strong>stitutions and<br />
companies <strong>in</strong> <strong>India</strong>. It has recently also acquired<br />
global clients and is look<strong>in</strong>g to expand globally.<br />
Signzy has carried out close to a million<br />
verifications to date and is <strong>in</strong>creas<strong>in</strong>gly<br />
becom<strong>in</strong>g the go to standard <strong>in</strong> digital<br />
onboard<strong>in</strong>g <strong>in</strong> <strong>India</strong>.<br />
This has allowed Signzy customers to offer<br />
digital services and thus improve digital f<strong>in</strong>ancial<br />
<strong>in</strong>clusion across the country.<br />
Interest<strong>in</strong>g Factoids<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>in</strong> <strong>India</strong>.<br />
<br />
<br />
<br />
<br />
<br />
<br />
PoC. Live with 18 <strong>in</strong>clud<strong>in</strong>g the third largest<br />
private bank <strong>in</strong> <strong>India</strong><br />
<br />
Quote<br />
<br />
startup like Signzy to work with large PSUs by<br />
help<strong>in</strong>g overcome barriers and foster<strong>in</strong>g real<br />
<strong>in</strong>novation.” - Arpit Ratan<br />
72<br />
INVEST IN INDIA<br />
73<br />
INVEST IN INDIA
Ecosystem<br />
Chakr Innovation<br />
Revolution through pollution<br />
Kheyti<br />
Ignit<strong>in</strong>g the Smart Farmer Revolution<br />
Kushagra Srivastava and Arpit Dhupar<br />
Kheyti found<strong>in</strong>g team <strong>in</strong> the Greenhouse-<strong>in</strong>-a-Box<br />
Vision<br />
How to reduce air pollution from diesel generators without<br />
impact<strong>in</strong>g their efficiency?<br />
Solution<br />
Chakr Shield is a device which can be retrofitted on diesel<br />
generators and can capture ~90 per cent of particulate<br />
matter emission. Created us<strong>in</strong>g a novel solution based<br />
method, it is a one of its k<strong>in</strong>d device which controls<br />
pollution without caus<strong>in</strong>g any adverse impact on the<br />
eng<strong>in</strong>e’s performance or the environment.<br />
Chakr Shield provides numerous advantages<br />
1. Helps meet the compliance requirements <strong>in</strong>stantly<br />
2. Causes m<strong>in</strong>imal back pressure – no adverse<br />
impact on performance<br />
3. Requires no additional space and can be retrofitted by<br />
plac<strong>in</strong>g on top of exist<strong>in</strong>g diesel generators<br />
<br />
atmosphere and is <strong>in</strong>stead captured and converted to<br />
<strong>in</strong>k – mak<strong>in</strong>g it a susta<strong>in</strong>able process.<br />
Game Chang<strong>in</strong>g Strategy<br />
There are no commercially successful carbon collection<br />
devices available for diesel generators despite diesel<br />
generators be<strong>in</strong>g significant contributors to ambient<br />
air pollution due to particulate matter. The current<br />
alternatives which are used <strong>in</strong> vehicles and other <strong>in</strong>dustrial<br />
<br />
<br />
these technologies oxidize the soot particles to Carbon<br />
<br />
solution. Chakr Shield, on the other hand can capture<br />
particulate carbon itself without significant back-pressure<br />
and convert the captured particulate <strong>in</strong>to <strong>in</strong>k pigments<br />
which f<strong>in</strong>ds applications <strong>in</strong> <strong>in</strong>dustry.<br />
Current scale of bus<strong>in</strong>ess and its<br />
impact on the <strong>in</strong>dustry and society<br />
Currently, Chakr has 30+ devices <strong>in</strong>stalled across NCR at<br />
<br />
and Real Estate Companies. The devices have been runn<strong>in</strong>g<br />
successfully for over 8 months and these<br />
devices have captured over 180 kg of particulate matter,<br />
which would have otherwise entered the atmosphere,<br />
pollut<strong>in</strong>g ~9,00,000 liters of air and enter<strong>in</strong>g the lungs, blood<br />
streams of the population. Thus, the efforts have reduced<br />
the environmental and health impacts which would have<br />
been caused by these particulate matter emissions.<br />
In parallel, Chakr is also work<strong>in</strong>g on technologies to<br />
capture other components of emissions (NOx, SOx) and<br />
is explor<strong>in</strong>g alternate sources of pollution from furnaces,<br />
<br />
to cont<strong>in</strong>ue to develop and dissem<strong>in</strong>ate technologies which<br />
can help save lives and the planet.<br />
Interest<strong>in</strong>g Factoids<br />
<br />
<br />
<br />
<br />
<br />
Top Hardware Startup <strong>in</strong> <strong>India</strong><br />
<br />
Innovation Challenge<br />
Quote<br />
<br />
<br />
under 30 this year. I am one of the youngest on the list (22<br />
years) and we are the only <strong>India</strong>ns <strong>in</strong> the social category<br />
<br />
support.” Kushagra Srivastava, Co-founder.<br />
Vision<br />
How can we help 100 million smallholder farmers battle<br />
climate change and move towards <strong>in</strong>come certa<strong>in</strong>ty to<br />
prevent the global food crisis from affect<strong>in</strong>g billions of people<br />
on the planet?<br />
Solution<br />
Kheyti is a social enterprise founded <strong>in</strong> 2015 with the<br />
mission of giv<strong>in</strong>g smallholder farmers <strong>in</strong>come certa<strong>in</strong>ty<br />
<br />
modular greenhouse <strong>in</strong>tegrated with services. Designed<br />
<br />
protects crops from environmental risks and grows seven<br />
times more food us<strong>in</strong>g 90 per cent less water.<br />
Game Chang<strong>in</strong>g Strategy<br />
Kheyti works with partners to offer f<strong>in</strong>anc<strong>in</strong>g, <strong>in</strong>puts, tra<strong>in</strong><strong>in</strong>g<br />
and market l<strong>in</strong>kages to farmers, creat<strong>in</strong>g a seamless path<br />
<br />
of $100/month, a 100% <strong>in</strong>crease <strong>in</strong> average farm <strong>in</strong>come.<br />
Current scale of bus<strong>in</strong>ess and its<br />
impact on the <strong>in</strong>dustry and society<br />
Kheyti was started by a group of professionals with extensive<br />
experience <strong>in</strong> rural <strong>India</strong> and agriculture. Through the past<br />
1.5 years, we have field-tested the product design, created<br />
partnerships to execute and have 50 pay<strong>in</strong>g customers <strong>in</strong> our<br />
pilot near Hyderabad. These farmers are now on the path<br />
towards susta<strong>in</strong>ed <strong>in</strong>come <strong>in</strong>crease with better and higher<br />
<br />
farmer <strong>in</strong>to a climate resilient smart farmer. Their vision is<br />
to see one million small farmers move out of the recurr<strong>in</strong>g<br />
cycle of poverty by 2025.<br />
Accord<strong>in</strong>g to an NSSO survey, the average farm<br />
household makes `<br />
which only 47.9 per cent is from cultivation and the rest<br />
from wages, livestock and non-farm bus<strong>in</strong>ess. A farm household<br />
needs to have at least 1 hectare of land to make ends meet<br />
<br />
less than 1 hectare of land, this means that two out of three<br />
farm households are simply not able to make ends meet. Kheyti’s<br />
ma<strong>in</strong> customers are these small and marg<strong>in</strong>al farmers. There are<br />
102 million smallholder farmers <strong>in</strong> <strong>India</strong> and almost none of them<br />
are us<strong>in</strong>g protected cultivation today.<br />
Impact<br />
<br />
<br />
<br />
<br />
Interest<strong>in</strong>g Factoids<br />
<br />
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<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Quote<br />
<strong>Invest</strong> <strong>India</strong> Provided opportunity to Kheyti to showcase their<br />
<br />
Hyderabad, <strong>India</strong><br />
<br />
ability to attract people from over 140 countries to Hyderabad.<br />
<br />
attendees appreciate the role women entrepreneur play <strong>in</strong><br />
build<strong>in</strong>g the startup ecosystem.” Saumya, Co-founder.<br />
74<br />
INVEST IN INDIA<br />
75<br />
INVEST IN INDIA
Ecosystem<br />
Mapmygenome<br />
Benefitt<strong>in</strong>g <strong>India</strong>ns from the technology of precision medic<strong>in</strong>e<br />
Anu Acharya, CEO<br />
Vision<br />
How can 1.3bn <strong>India</strong>ns plan for a future that keeps 30,000<br />
potential health problems at bay with 99 per cent surety?<br />
Solution<br />
<br />
both the genotypic and phenotypic fields that will help <strong>in</strong><br />
discovery and diagnostics lead<strong>in</strong>g to precision medic<strong>in</strong>e. By<br />
<br />
gett<strong>in</strong>g the average person of <strong>India</strong>n orig<strong>in</strong> to benefit from<br />
the predictive and diagnostic value of these tests while<br />
build<strong>in</strong>g a database.<br />
Game Chang<strong>in</strong>g Strategy<br />
<br />
healthcare providers, who can offer their customers the<br />
benefits of genetic test<strong>in</strong>g along with traditional cures.<br />
<br />
offers genetic counselor services who correlate genetic<br />
f<strong>in</strong>d<strong>in</strong>gs with health history and offer personalized health<br />
recommendation reports tailored to suit an <strong>in</strong>dividual’s<br />
psyche and physiology. This is personalized, proactive,<br />
participatory, and preventive healthcare <strong>in</strong> true sense.<br />
Current scale of bus<strong>in</strong>ess and its<br />
impact on the <strong>in</strong>dustry and society<br />
<br />
<br />
with no chronic health conditions. They like to know more<br />
about their physical and behavioral traits such as sports<br />
endurance, slimm<strong>in</strong>g, longevity, hair loss and caffe<strong>in</strong>e<br />
<br />
are concerned about health issues such as diabetes,<br />
cardiovascular diseases, and obesity. Over the last two<br />
<br />
new partnerships with hospitals, gyms and corporates.<br />
Interest<strong>in</strong>g Factoids<br />
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companies from <strong>India</strong>.<br />
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healthcare.<br />
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as Innovative Healthcare Startup of the year 2015.<br />
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among the 5 Top Innovators for Jio Economic Times<br />
Startup Awards 2015 and CEO Anu Acharya was<br />
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Quote<br />
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perfect nurtur<strong>in</strong>g environment for <strong>in</strong>novation and<br />
disruption. The Central and State governments have<br />
been promis<strong>in</strong>g startup friendly policies and we have<br />
seen an exponential rise <strong>in</strong> the number of startups.<br />
Universities and entrepreneurial societies have special<br />
programs for nurtur<strong>in</strong>g ideas, help<strong>in</strong>g startups secure<br />
fund<strong>in</strong>g, and more.” Anu Acharya, CEO.<br />
<br />
INVEST IN INDIA