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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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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 />

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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 />

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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 />

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21<br />

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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 />

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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 />

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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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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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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 />

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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 />

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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 />

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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 />

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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 />

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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 />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

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 />

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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 />

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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 />

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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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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 />

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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 />

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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 />

<br />

<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 />

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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 />

<br />

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

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