When I return to India I am always amazed at just how much is happening. There is no such thing as a slow news day, being in India is always exciting.
Right now India is growing and is going to continue growing at about 7%. The RBI Governor is equally confident that inflation will slow over the course of the year. But it is the businesses that are driving India’s growth, new and young Entrepreneurs, IPOs and numerous mergers and acquisitions are keeping the Economy moving. However, big business continues to worry about the cost of borrowing and likely power shortages and the delays in policy decisions that can make this worse. On a separate note, one of the things Indian business can be proud of is the number of women in high level positions, particularly in the Banking and financial services sector, many other countries are still striving to accomplish this.
In my view there are 2 issues haunting India, poverty and the lack of a perceived solution.
India is blessed with many self motivated individuals that are willing to dedicate their time and money to changing the lives of the poorest in society. However despite successful grass route initiatives a large scale political solution to poverty seems a long way off. There is lots of political and social debate but the state of politics at the moment is not helping with quick decision making or long term solutions.
Similarly in the field of Anti-Corruption, there is a strong civil society lead campaign to make democracy more participatory and to help reduce corruption by attracting more able candidates. Again this is being driven by successful individuals including NRIs rather than the political classes.
My final observation, the more I travel in India the more impressed I am at how unimportant caste and religion are becoming across society. They no longer play a role in most of the interactions you have in both the Cities and rural areas. However in political discussions and across the media there is a huge amount of time dedicated to it. I do wonder if this energy was spent on the wider poverty issue there might be more progress.
None the less, India is still a truly vibrant and emerging nation that is a beacon for democracy and economic growth.
Showing posts with label India. Show all posts
Showing posts with label India. Show all posts
Tuesday, 31 January 2012
Thursday, 24 November 2011
India and the UK
India and the UK have a long established partnership that manifests in many ways; the links between our 2 countries are strong and healthy and there is much room to grow.
In 2010, bilateral trade between the UK and India grew by 20%, bringing the total to £13 billion. UK goods exports to India grew by 37% and goods imports from India rose by 27%. However, despite an overall growth in exports from the UK, the country’s comparative position has been slipping. In 2005 the UK was the 5th largest exporter to India, whereas the UK is now the 18th largest exporter. India is the 13th largest export market for the UK, while the UK is India’s 5th largest export market, accounting for 3.6% of all India’s exports. There is a general view that the relationship is under –utilised.
The potential for growth in trade and investment between the UK and India is huge as reflected by Indian Prime Minister Manmohan Singh when declaring last year that the 2 countries ‘should aim at the doubling of our bilateral trade turnover in the next five years’. However as the British Prime Minister David Cameron summed it up while in India ‘we cannot rely on sentiment and our shared history’ to make this happen.
1) Firstly, UK companies operating in India
2) Secondly, Indian Companies that use the UK as a base to raise capital and to operate abroad
3) Thirdly, related to the Second point, but Indian companies that operate in Britain, but are fully engaged with the UK’s economy.
Britain in India
British Business has a strong presence in India and has for many years. Many of the UK’s big names are present, Arup, Mott Macdonald, Serco, Amec, JCB and Unilever.
The success of the expanding Indian economy is widely acknowledged by UK investors. The most recent being the set up of ‘India Gas Solutions’ by BP and Reliance Industries in a $7.2billion investment focused on global sourcing and marketing of natural gas in India. This is one of the largest ever foreign investments into India and clearly demonstrates the continuing importance of each country to the other.
As access to India’s services sector grows, I have absolutely no doubt that the UK will jump up the league table of bilateral trade and investment flows almost overnight. The India-EU trade pact that is reportedly to be completed in the New Year should help with this.
India in the UK
Of all the Indian Companies operating in the European Union there are more in the UK than the other 26 EU nations combined. The London Stock exchange is host to 31 listed companies, 20 more than New York, and many more than Singapore and Hong Kong. Most of the Indian companies operating here do so to take advantage of the City of London as a financial Hub, as an access point to Europe and as a Geographical bridge between the East and the West. I hope this will remain the case in the future.
Essar Energy is a good example of a fast growing company that used London in this way; they raised US$2 billion through an initial public offering in May 2010.
I believe that if we want such partnerships between India and the UK to grow and strengthen, then the City of London’s pre-eminence must be protected. With regards to the proposed ‘Tobin Tax’, the UK’s strong stance against it is sensible. If the British Government gives an inch by way of the financial services tax they will lose a mile in international business.
The Second Category of Indian Company operating in the UK are the fully engaged ones – like TATA.
Tata is now the UK’s biggest manufacturer, with almost 40,000 workers. When including Tata's service industries, such as consultancy, the Company is the largest private sector employer in the UK.
This is a Model that can be especially fruitful for both countries. Key to ensuring this is converting the Indian Companies that are in London to take advantage of the City into fully integrated Companies along the Tata Model.
There is also great scope for synergy with high end engineering design and mass marketing. It is what James Dyson did in China, but the only problem is that Dyson products are now made in China without any involvement from Dyson due to weak IP regulation. This would not happen in India.
Tata has demonstrated how profitable working with a pre-existing British firm can be by buying into existing brands. Let the British design and the Indians scale up.
In reality, India and the UK have an existing partnership that will continue to grow slowly on its own, but if we want to turn it into a true 21st Century Partnership it requires a catalytic intervention from Governments and the private sector. The ‘sea change’ that both Governments called for during David Cameron’s visit to India last year will not happen unless the relationship is managed and developed actively. I would like to see more direct involvement from top Indian and British business leaders.
In 2010, bilateral trade between the UK and India grew by 20%, bringing the total to £13 billion. UK goods exports to India grew by 37% and goods imports from India rose by 27%. However, despite an overall growth in exports from the UK, the country’s comparative position has been slipping. In 2005 the UK was the 5th largest exporter to India, whereas the UK is now the 18th largest exporter. India is the 13th largest export market for the UK, while the UK is India’s 5th largest export market, accounting for 3.6% of all India’s exports. There is a general view that the relationship is under –utilised.
The potential for growth in trade and investment between the UK and India is huge as reflected by Indian Prime Minister Manmohan Singh when declaring last year that the 2 countries ‘should aim at the doubling of our bilateral trade turnover in the next five years’. However as the British Prime Minister David Cameron summed it up while in India ‘we cannot rely on sentiment and our shared history’ to make this happen.
1) Firstly, UK companies operating in India
2) Secondly, Indian Companies that use the UK as a base to raise capital and to operate abroad
3) Thirdly, related to the Second point, but Indian companies that operate in Britain, but are fully engaged with the UK’s economy.
Britain in India
British Business has a strong presence in India and has for many years. Many of the UK’s big names are present, Arup, Mott Macdonald, Serco, Amec, JCB and Unilever.
The success of the expanding Indian economy is widely acknowledged by UK investors. The most recent being the set up of ‘India Gas Solutions’ by BP and Reliance Industries in a $7.2billion investment focused on global sourcing and marketing of natural gas in India. This is one of the largest ever foreign investments into India and clearly demonstrates the continuing importance of each country to the other.
As access to India’s services sector grows, I have absolutely no doubt that the UK will jump up the league table of bilateral trade and investment flows almost overnight. The India-EU trade pact that is reportedly to be completed in the New Year should help with this.
India in the UK
Of all the Indian Companies operating in the European Union there are more in the UK than the other 26 EU nations combined. The London Stock exchange is host to 31 listed companies, 20 more than New York, and many more than Singapore and Hong Kong. Most of the Indian companies operating here do so to take advantage of the City of London as a financial Hub, as an access point to Europe and as a Geographical bridge between the East and the West. I hope this will remain the case in the future.
Essar Energy is a good example of a fast growing company that used London in this way; they raised US$2 billion through an initial public offering in May 2010.
I believe that if we want such partnerships between India and the UK to grow and strengthen, then the City of London’s pre-eminence must be protected. With regards to the proposed ‘Tobin Tax’, the UK’s strong stance against it is sensible. If the British Government gives an inch by way of the financial services tax they will lose a mile in international business.
The Second Category of Indian Company operating in the UK are the fully engaged ones – like TATA.
Tata is now the UK’s biggest manufacturer, with almost 40,000 workers. When including Tata's service industries, such as consultancy, the Company is the largest private sector employer in the UK.
This is a Model that can be especially fruitful for both countries. Key to ensuring this is converting the Indian Companies that are in London to take advantage of the City into fully integrated Companies along the Tata Model.
There is also great scope for synergy with high end engineering design and mass marketing. It is what James Dyson did in China, but the only problem is that Dyson products are now made in China without any involvement from Dyson due to weak IP regulation. This would not happen in India.
Tata has demonstrated how profitable working with a pre-existing British firm can be by buying into existing brands. Let the British design and the Indians scale up.
In reality, India and the UK have an existing partnership that will continue to grow slowly on its own, but if we want to turn it into a true 21st Century Partnership it requires a catalytic intervention from Governments and the private sector. The ‘sea change’ that both Governments called for during David Cameron’s visit to India last year will not happen unless the relationship is managed and developed actively. I would like to see more direct involvement from top Indian and British business leaders.
Tuesday, 6 September 2011
India and corruption
The current situation in India, popular protests against corruption led by Anna Hazare, has set me thinking.
I think, particularly in a country as diverse and large as India, inclusive growth requires inclusive democracy. The wide spread protest against corruption have shown that India has an appetite for participatory democracy, and given the sheer size and scale of the Indian state ‘people power’ might be necessary to keep it in check.
If nothing else this incident has shown once again how important tackling corruption is to a country’s development, Moody’s the ratings agency says that ‘cases of corruption and the recent scandals have impaired business environment in India’. Tackling this is important before it has an impact on India’s ability to attract international business and investment and further damages the countries reputation as a safe place to do business.
I think, particularly in a country as diverse and large as India, inclusive growth requires inclusive democracy. The wide spread protest against corruption have shown that India has an appetite for participatory democracy, and given the sheer size and scale of the Indian state ‘people power’ might be necessary to keep it in check.
If nothing else this incident has shown once again how important tackling corruption is to a country’s development, Moody’s the ratings agency says that ‘cases of corruption and the recent scandals have impaired business environment in India’. Tackling this is important before it has an impact on India’s ability to attract international business and investment and further damages the countries reputation as a safe place to do business.
Wednesday, 15 December 2010
MSMEs and the Commonwealth
Small companies are the life blood of all Commonwealth economies. In the UK, for example, MSMEs account for 99% of all businesses. As much as 50% of the UK’s workforce is employed by companies employing less than 100 people and on average 65% of all new jobs are created by MSMEs each year.
As the UK looks to export its way out of recession greater emphasis is being placed on helping to internationalise MSMEs, as only the most innovative and competitive MSMEs will succeed in international markets. A strategy that focuses on supporting fast growing and innovative MSMEs internationalise will reap disproportionately large returns for all countries involved. India in particular is seen as an enormous potential market for MSMEs, but so far UK companies have struggled to penetrate the market.
India has continually demonstrated an ability to nurture its own MSMEs into national and international corporations, almost all the major Indian companies have developed from humble origins within living memory. India is therefore an important market for international MSMEs looking to win new business and for those countries looking to learn how they can support and develop their own MSMEs.
Doing business with another Commonwealth country can be up to 20% less expensive than doing business with non-Commonwealth countries as a result of the ‘Commonwealth Factor’. These factors are of disproportionate advantage to MSMEs, so the Commonwealth relationships can play a key role in developing international MSMEs that will help drive growth and job creation across the 54 member countries of the association.
As the UK looks to export its way out of recession greater emphasis is being placed on helping to internationalise MSMEs, as only the most innovative and competitive MSMEs will succeed in international markets. A strategy that focuses on supporting fast growing and innovative MSMEs internationalise will reap disproportionately large returns for all countries involved. India in particular is seen as an enormous potential market for MSMEs, but so far UK companies have struggled to penetrate the market.
India has continually demonstrated an ability to nurture its own MSMEs into national and international corporations, almost all the major Indian companies have developed from humble origins within living memory. India is therefore an important market for international MSMEs looking to win new business and for those countries looking to learn how they can support and develop their own MSMEs.
Doing business with another Commonwealth country can be up to 20% less expensive than doing business with non-Commonwealth countries as a result of the ‘Commonwealth Factor’. These factors are of disproportionate advantage to MSMEs, so the Commonwealth relationships can play a key role in developing international MSMEs that will help drive growth and job creation across the 54 member countries of the association.
Thursday, 25 November 2010
Good governance and increased prosperity
On recent trips to Asia both the British Prime Minister, David Cameron and the US President, Barack Obama have made the point of highlighting one of things that can make the Commonwealth stand out in the future – the importance of the link between good governance and increased prosperity.
Addressing the tricky topic at his lecture in a Chinese’s university, David Cameron said ‘I am convinced that the best guarantor of prosperity and stability is for economic and political progress to go in step together.’. This approach is key to the Commonwealth future success, I have always argued that the Commonwealth should give an equal focus to both the Harare Principles, on good governance and human rights and to the Edinborough Economic Declaration. This is proven by many Commonwealth members, who are required to abide by certain rules regarding governance, human rights and the rule of law, or face expulsion from the association. It is no coincidence that the same countries are nearly always investment destinations of choice.
Making this point very clearly, President Obama in his address to the Joint Session of the Indian Parliament during his recent trip said "As India marks 60 years with a strong and democratic constitution, the lesson is clear: India has succeeded, not in spite of democracy; India has succeeded because of democracy,"
Britain, India and other Commonwealth countries can help in the development of other countries by explaining how their focus on good governance has led to increased investment and increased prosperity. Commonwealth successes, are based on a respect for the rule of law, human rights, etc as it is these things that give investors the confidence to invest in the association’s member states rather than other countries.
Addressing the tricky topic at his lecture in a Chinese’s university, David Cameron said ‘I am convinced that the best guarantor of prosperity and stability is for economic and political progress to go in step together.’. This approach is key to the Commonwealth future success, I have always argued that the Commonwealth should give an equal focus to both the Harare Principles, on good governance and human rights and to the Edinborough Economic Declaration. This is proven by many Commonwealth members, who are required to abide by certain rules regarding governance, human rights and the rule of law, or face expulsion from the association. It is no coincidence that the same countries are nearly always investment destinations of choice.
Making this point very clearly, President Obama in his address to the Joint Session of the Indian Parliament during his recent trip said "As India marks 60 years with a strong and democratic constitution, the lesson is clear: India has succeeded, not in spite of democracy; India has succeeded because of democracy,"
Britain, India and other Commonwealth countries can help in the development of other countries by explaining how their focus on good governance has led to increased investment and increased prosperity. Commonwealth successes, are based on a respect for the rule of law, human rights, etc as it is these things that give investors the confidence to invest in the association’s member states rather than other countries.
Friday, 6 August 2010
David Cameron in India
David Cameron's visit to India last week could well turn out to be one of the most important diplomatic trips of his time in number 10.
The commitment by both Governments to transform the nation’s relationship over the coming years is most welcome. Both leaders agreed that the India-UK relationship has great room for growth, in the political, cultural, security and economic realms that would be of benefit to both countries.
I am particularly pleased to see the commitment to significantly increase trade and investment between the 2 countries. I have long been calling for the level of interaction between the countries private sectors to be raised and am delighted that the UK-India CEO’s Forum is being set up under the Peter Sands of Standard Chartered and Rattan Tata of Tata Group (both CBC members of long standing) to provide the private sector perspective on strengthening the economic relationship. I look forward to working with the Forum in the future.
Hon Kamal Nath, India’s Minister for Road Transport speaking earlier this year at our India Infrastructure Forum (IIF) said the next 10 years will be India’s Infrastructure Decade. The opportunities offered by this are enormous, tackling India’s infrastructure deficit will require cooperation between the Indian government and the national and international private sector, and the UKs business should be leaders in this. To help push this Lord Adonis, the then UK Secretary of State for Transport, initiated a MoU between the Indian Government and the UK at the IIF to work together on road development, a process that was continued during the Prime Minister’s visit last week.
It is great to see the New British Prime Minister taking such an interest in strengthening the Bi-lateral relationship between the 2 countries, in a report we produced in 2008, and are currently in the process of updating, we found that the UK was India’s most significant investor, a trend we hope continues.
And finally I was delighted to see the strong commitment made by both Prime Ministers during their meeting to work together to ‘strengthen the Commonwealth’ as an important global body.
The commitment by both Governments to transform the nation’s relationship over the coming years is most welcome. Both leaders agreed that the India-UK relationship has great room for growth, in the political, cultural, security and economic realms that would be of benefit to both countries.
I am particularly pleased to see the commitment to significantly increase trade and investment between the 2 countries. I have long been calling for the level of interaction between the countries private sectors to be raised and am delighted that the UK-India CEO’s Forum is being set up under the Peter Sands of Standard Chartered and Rattan Tata of Tata Group (both CBC members of long standing) to provide the private sector perspective on strengthening the economic relationship. I look forward to working with the Forum in the future.
Hon Kamal Nath, India’s Minister for Road Transport speaking earlier this year at our India Infrastructure Forum (IIF) said the next 10 years will be India’s Infrastructure Decade. The opportunities offered by this are enormous, tackling India’s infrastructure deficit will require cooperation between the Indian government and the national and international private sector, and the UKs business should be leaders in this. To help push this Lord Adonis, the then UK Secretary of State for Transport, initiated a MoU between the Indian Government and the UK at the IIF to work together on road development, a process that was continued during the Prime Minister’s visit last week.
It is great to see the New British Prime Minister taking such an interest in strengthening the Bi-lateral relationship between the 2 countries, in a report we produced in 2008, and are currently in the process of updating, we found that the UK was India’s most significant investor, a trend we hope continues.
And finally I was delighted to see the strong commitment made by both Prime Ministers during their meeting to work together to ‘strengthen the Commonwealth’ as an important global body.
Friday, 16 July 2010
India, Africa and employment
An interesting report by the Oxford poverty and human development inactive was recently released that found that there were ‘more poor’ in India than Africa. This doesn’t surprise me as much as it seems to have others, while India has made improvements it has never rated highly on the UN’s Human Development Index, India ranked 134th out of 182 countries in 2009.
What occurs to me, is the similarities between the areas of high poverty in India and Africa. Outside of the urban poor, the areas with high levels of poverty are predominantly regions with large deposits of natural resources and areas of with high levels of agricultural fertility, that still operate some form of feudal system.
The reasons for poverty are the same the world over and many of the solutions can be applied globally. Investing in agriculture will allow farmers to move away from subsistence to commercial viability. Resource companies are not ‘good’ job creators, so they must be pushed to downstream and help create the support industries that will provide employment in resource rich regions.
Poverty will only be tackled successfully where government works in partnership with the private sector. Government must provide a regulatory and tax environment that stimulates economic activity. While the private sector must take advantage of this and provide employment along the length of the value chain.
What occurs to me, is the similarities between the areas of high poverty in India and Africa. Outside of the urban poor, the areas with high levels of poverty are predominantly regions with large deposits of natural resources and areas of with high levels of agricultural fertility, that still operate some form of feudal system.
The reasons for poverty are the same the world over and many of the solutions can be applied globally. Investing in agriculture will allow farmers to move away from subsistence to commercial viability. Resource companies are not ‘good’ job creators, so they must be pushed to downstream and help create the support industries that will provide employment in resource rich regions.
Poverty will only be tackled successfully where government works in partnership with the private sector. Government must provide a regulatory and tax environment that stimulates economic activity. While the private sector must take advantage of this and provide employment along the length of the value chain.
Wednesday, 7 April 2010
India's second tier cities
I was in India earlier this month, as well as visiting the major business cities I spent time in some of the ‘second tier cities‘, Ahmadabad, Chennai and Kochi. What I noticed most of all was how well the infrastructure in these cities is developing to handle the increase in business there.
In Ahmadabad in particular, a city once renowned for its cost saving, the business district’s skyline is becoming more and more impressive. Business in these cities are following in the footsteps of the bigger cities and becoming more like their western counterparts, adopting western style business structures and marketing strategies. Where business were once housed in old building to avoid costs, they are becoming more and more willing to undertake the often extravagant costs of moving to high end, high tech office spaces with the view it will help get the next order and allow them to compete with rivals. This change in attitude should help make India’s second cities more competitive and drive forward their growth.
In Ahmadabad in particular, a city once renowned for its cost saving, the business district’s skyline is becoming more and more impressive. Business in these cities are following in the footsteps of the bigger cities and becoming more like their western counterparts, adopting western style business structures and marketing strategies. Where business were once housed in old building to avoid costs, they are becoming more and more willing to undertake the often extravagant costs of moving to high end, high tech office spaces with the view it will help get the next order and allow them to compete with rivals. This change in attitude should help make India’s second cities more competitive and drive forward their growth.
Monday, 25 January 2010
India - economic optimism for 2010
After returning from India last week, one of the main differences in the conversations going on between business here in the UK and in India is the way growth is discussed. In the UK the talk is of recovery, in India the talk is all about how much the economy will grow this year. Discussion in India is optimistic, rather than the UKs current trend of Pessimism. The Federal Government of India is Predicting a return to growth of around 7% this year. The Chairman of ICICI bank is even more optimistic predicting India’s growth rate to be at 10% by 2011.
Much of this optimism comes from the changes we see in India, firstly the county never entered recession as the West did, there was only a slight drop in Growth. Secondly, the improvements to the country’s infrastructure are dramatic; the road network for example is almost unrecognisable from only 15 years ago. Entrepreneurs across the county are all looking for new opportunities, both national and international and the demand for luxury consumer goods in India is increasing year on year.
Ironically there is talk of Bonuses in the Indian Media, but it’s not focused on Bankers, rather IT companies. The rate of Growth in the IT sector has been much higher than expected over the last year, Tata Consultancy for example plan a 150% bonus pay out for 2010.
They are not the only company in the sector revealing higher than expected profits, nor is the IT Sector alone in displaying stronger than predicted results, the economic prospects for the coming year in India look great.
Much of this optimism comes from the changes we see in India, firstly the county never entered recession as the West did, there was only a slight drop in Growth. Secondly, the improvements to the country’s infrastructure are dramatic; the road network for example is almost unrecognisable from only 15 years ago. Entrepreneurs across the county are all looking for new opportunities, both national and international and the demand for luxury consumer goods in India is increasing year on year.
Ironically there is talk of Bonuses in the Indian Media, but it’s not focused on Bankers, rather IT companies. The rate of Growth in the IT sector has been much higher than expected over the last year, Tata Consultancy for example plan a 150% bonus pay out for 2010.
They are not the only company in the sector revealing higher than expected profits, nor is the IT Sector alone in displaying stronger than predicted results, the economic prospects for the coming year in India look great.
Friday, 13 November 2009
India, Prudence and FDI
The Indian Prime Minister’s, Manmohan Singh, recent announcements about new economic reforms, particularly the 10% divestment of public sector companies, is movement in the right direction.
India is satisfied that it has avoided the worst of the global financial crisis, its conservative banking system and high capital ratio have protected it from the worst of the global turmoil. However, this conservatism works both ways, yes it reduces risk, but it also limits access. In India, this means millions of potential entrepreneurs are excluded from the financial systems that they can use to prosper. Prudence is good, but too great a level can limit growth and exclude too many members of society. To accelerate the rate of growth India should, perhaps, be a little less prudent.
Relatively low levels of FDI in India, only $121 billion over the last 8 years, are a mystery to me. India represents a fantastic investment opportunity and the levels should be higher. Recent Figures have shown a 9.1% increase in industrial production from last year, and the Government’s commitment to $500 Billion in infrastructure investment, a figure that will be far higher when including the Private Sector contribution. The IFC, the World Bank’s private sector arm, decision to increase India’s exposure from the $3.4 Billion or 10% of its portfolio last year, are all signs of confidence in India’s policy and growth. As one of the few countries where economic activity is near levels hit before the economic crisis, India will prove to be one of the most attractive investment destinations over the coming years.
India is satisfied that it has avoided the worst of the global financial crisis, its conservative banking system and high capital ratio have protected it from the worst of the global turmoil. However, this conservatism works both ways, yes it reduces risk, but it also limits access. In India, this means millions of potential entrepreneurs are excluded from the financial systems that they can use to prosper. Prudence is good, but too great a level can limit growth and exclude too many members of society. To accelerate the rate of growth India should, perhaps, be a little less prudent.
Relatively low levels of FDI in India, only $121 billion over the last 8 years, are a mystery to me. India represents a fantastic investment opportunity and the levels should be higher. Recent Figures have shown a 9.1% increase in industrial production from last year, and the Government’s commitment to $500 Billion in infrastructure investment, a figure that will be far higher when including the Private Sector contribution. The IFC, the World Bank’s private sector arm, decision to increase India’s exposure from the $3.4 Billion or 10% of its portfolio last year, are all signs of confidence in India’s policy and growth. As one of the few countries where economic activity is near levels hit before the economic crisis, India will prove to be one of the most attractive investment destinations over the coming years.
Thursday, 5 November 2009
Indian Infrastructure
I had the pleasure of attending an event with President Patil of India last week. The President was in the UK to promote UK India relations and strengthen business ties between the 2 countries. Last week was very much an ‘India week’ in London, demonstrating the importance of the relationship to the 2 countries the President’s trip coincided with the return of the Lord Mayor of London from India where he was leading a business delegation from the City.
I feel, that while there have been successful experiences for UK Infrastructure companies in India, CBC members Arup and Mott MacDonald to name a couple, the experience has not always been as rewarding. Due in part to the Strength of the Home Grown construction sector that is better connected than International companies can hope to be. The lesson for UK construction companies in India is to find the right local partner, one who shares the same business goals and has the capacity to deliver. While there are challenges to finding the right partner in India the arguments in favour of entering the market allied with an Indian company are overwhelming.
I feel, that while there have been successful experiences for UK Infrastructure companies in India, CBC members Arup and Mott MacDonald to name a couple, the experience has not always been as rewarding. Due in part to the Strength of the Home Grown construction sector that is better connected than International companies can hope to be. The lesson for UK construction companies in India is to find the right local partner, one who shares the same business goals and has the capacity to deliver. While there are challenges to finding the right partner in India the arguments in favour of entering the market allied with an Indian company are overwhelming.
Friday, 24 July 2009
India UK Merger and Acquisitions
Between 2000 and 2008 over 1000 Merger and Acquisitions took place between British and Indian Companies, these deals were worth over 75 billion Dollars. The total number of deals is expected to drop in 2009, due to the financial crisis and less easy access to credit, but the value of those that do go through is expected to remain high.
India and the UK's shared heritage make them ideal business partners and in recent years the quantities of money involved have been impressive, but mainly made up by one or two 'headline' multi-million dollar deals a year.
The next step is to promote the greater interaction between small and medium size companies in both India and the UK, as these are by far the largest employers and would have the greatest impact on the general economy.
India and the UK's shared heritage make them ideal business partners and in recent years the quantities of money involved have been impressive, but mainly made up by one or two 'headline' multi-million dollar deals a year.
The next step is to promote the greater interaction between small and medium size companies in both India and the UK, as these are by far the largest employers and would have the greatest impact on the general economy.
Wednesday, 27 May 2009
Indian Elections
I would like to congratulate Manmohan Singh on his election as India’s Prime Minister, the workings of the world’s largest democracy are an impressive sight nearly 1 billion people have chosen their representatives.
This election marks a particular change in India’s politics; the congress party now has a working majority and can no longer be held to ransom by the smaller parties that were previously able to prevent governments from taking action. With the ruling party now longer beholden to minority interest progress can now be made on the Doha round as both the US and UK want and expect, leading to further economic reforms in the labour, legal and financial spheres.
Equally India has a major role to play in the response to the financial crisis; European and especially UK Business are looking to India as partners for ventures there and abroad with a high expectation of success. Finally with India looking to be one of the big winners in the proposed IMF reforms in terms of voting rights, India role in the global economy and the Institutions that govern it can only grow.
This election marks a particular change in India’s politics; the congress party now has a working majority and can no longer be held to ransom by the smaller parties that were previously able to prevent governments from taking action. With the ruling party now longer beholden to minority interest progress can now be made on the Doha round as both the US and UK want and expect, leading to further economic reforms in the labour, legal and financial spheres.
Equally India has a major role to play in the response to the financial crisis; European and especially UK Business are looking to India as partners for ventures there and abroad with a high expectation of success. Finally with India looking to be one of the big winners in the proposed IMF reforms in terms of voting rights, India role in the global economy and the Institutions that govern it can only grow.
Wednesday, 4 February 2009
Slumdog Millionaires….
While in Bombay last Month my wife and I along with some colleagues from the UK and Canada, saw Slumdog Millionaire, I thought it was an exceptional film, Danny Boyle should be extremely proud, particularly of the way he captured the image of India. I know the author personally, we met while he worked at the Indian High Commission in the UK, I had the pleasure of reading an early version of the book, it’s a great and inspirational story.
I was however disturbed to read, the allegations lodged against the films makers that the children who starred in the film were paid almost nothing and are still living in the same conditions as when they were discovered by the casting scouts.
I hope these allegations are not true, and that some of the films profits will reach the people who live in the slums, particularly the kids who starred in the film, as Danny Boyle has since said. There is a potential millionaire, born every day in all the Slums of India.
I was however disturbed to read, the allegations lodged against the films makers that the children who starred in the film were paid almost nothing and are still living in the same conditions as when they were discovered by the casting scouts.
I hope these allegations are not true, and that some of the films profits will reach the people who live in the slums, particularly the kids who starred in the film, as Danny Boyle has since said. There is a potential millionaire, born every day in all the Slums of India.
Thursday, 15 January 2009
India and the emerging markets the solution to the Credit Crunch?
In the context of the recession and ‘credit crunch’ I think people would have been amazed had they been in Gujarat yesterday and the day before, nearly 20 000 people attended the opening of the Vibrant Gujarat Global Investor’s summit 2009. India’s captains of industry and its top business leaders were present for the summit as well as representatives from governments around the world.
In the session I chaired, ‘Infrastructure with a focus on Special Investment Regions’ there was a stampede to sign MOU’s, it was an amazing site, to see so much confidence in India’s particularly Gujarat’s growth. Companies from all round the world were falling on each other to sign, Japan, Germany, the US, the UK, China, Korea and South Africa among many others.
The PM of Kenya and the Vice President of Uganda along with the numerous ministers from many African and Asian countries who were present for the summit seemed almost dazed at first by the response from business were desperate to learn from the experience.
The summit is the perfect antidote to all the news floating around about investors to nervous to invest. It was a hugely encouraging experience, India; especially Gujarat is the place to be. I have no doubt the solution to the credit crunch lies in emerging markets like India where there is still growth and the opportunities for business, as demonstrated over the last couple of days, is huge.
In the session I chaired, ‘Infrastructure with a focus on Special Investment Regions’ there was a stampede to sign MOU’s, it was an amazing site, to see so much confidence in India’s particularly Gujarat’s growth. Companies from all round the world were falling on each other to sign, Japan, Germany, the US, the UK, China, Korea and South Africa among many others.
The PM of Kenya and the Vice President of Uganda along with the numerous ministers from many African and Asian countries who were present for the summit seemed almost dazed at first by the response from business were desperate to learn from the experience.
The summit is the perfect antidote to all the news floating around about investors to nervous to invest. It was a hugely encouraging experience, India; especially Gujarat is the place to be. I have no doubt the solution to the credit crunch lies in emerging markets like India where there is still growth and the opportunities for business, as demonstrated over the last couple of days, is huge.
Monday, 8 December 2008
The menace of terrorism will block South Asia’s efforts to alleviate poverty and generate economic growth
The incident in Mumbai is bad not only for India, but for the entire region. It should be condemned by all people in South Asia and they should be united in their resolve to ensure it doesn't happen again in the region. Half of the world's poor live in South Asia and such incidents will keep the region in poverty and hold back efforts to achieve economic growth and poverty alleviation.
The Commonwealth Business Council has been working with business and governments and SAARC to enhance trade and investment linkages in the region to underpin wider economic growth. After the events in Mumbai, international businesses are more committed than ever to enhance the partnership with South Asian business. I hope that the leaders and people of South Asia will be even more determined to fight the menace of terrorism for the sake of economic development in the region.
The Commonwealth Business Council has been working with business and governments and SAARC to enhance trade and investment linkages in the region to underpin wider economic growth. After the events in Mumbai, international businesses are more committed than ever to enhance the partnership with South Asian business. I hope that the leaders and people of South Asia will be even more determined to fight the menace of terrorism for the sake of economic development in the region.
Wednesday, 3 December 2008
India must take immediate and large-scale action to prevent repeats of last week's attacks
My thoughts are with the families of those caught up in the terrible attacks in Mumbai last week.
India cannot ignore this incident; fear of repeats may drive business from India. Both World and Local business expects a clear response from the Indian Government and large scale steps to improve security and administration in order to minimise the chance of a similar attacks occur again.
I welcome the appointment of Palaniappan Chidambaram to the role of Home Minister, he has proven himself facing the challenges in the finance portfolio, and must now make tackling security and terrorism his number one priority. Retaining the confidence of the international business community is essential, more action must be taken, and more heads must role in both Mumbai and Delhi. India must now take immediate and strong action, in the manner of the US and UK following similar incidents, small steps will not inspire confidence. India must act like a world economic power to give confidence to businesses already in the country and to those on their way.
I am a regular visitor to India and have stayed in the Taj and Oberoi Hotels many times, last year I was in the Taj with over 100 business leaders and am determined to return with even more.
India cannot ignore this incident; fear of repeats may drive business from India. Both World and Local business expects a clear response from the Indian Government and large scale steps to improve security and administration in order to minimise the chance of a similar attacks occur again.
I welcome the appointment of Palaniappan Chidambaram to the role of Home Minister, he has proven himself facing the challenges in the finance portfolio, and must now make tackling security and terrorism his number one priority. Retaining the confidence of the international business community is essential, more action must be taken, and more heads must role in both Mumbai and Delhi. India must now take immediate and strong action, in the manner of the US and UK following similar incidents, small steps will not inspire confidence. India must act like a world economic power to give confidence to businesses already in the country and to those on their way.
I am a regular visitor to India and have stayed in the Taj and Oberoi Hotels many times, last year I was in the Taj with over 100 business leaders and am determined to return with even more.
Wednesday, 16 January 2008
Gordon Brown's Visit to India
British Prime Minister Gordon Brown’s India visit is imminent and the CBC is looking forward to seeing more business partnerships between the two countries. I am in India at the moment and it is heart warming to see the strides that the business community is making in India.
UK and India are engaged in one of the most profitable and significant bilateral trade and investment partnerships in the world. Increasingly, most major British companies consider it essential to have partnerships in India. And a growing number of Indian companies are getting on the LSE and the AIM listings.
I have through the CBC worked very closely with business leaders and government ministers to enhance bilateral trade and strike up partnerships in areas of finance, technology and innovation. A lot of work has gone into trade liberalisation. CBC also regularly organises business meetings in London with visiting Indian ministers.
Highlighting the growing influence of India, CBC is hosting its annual Global Business Leaders Forum on March 18-19 in Mumbai to be attended by Paul Skinner, Chairman, Rio Tinto; Gary Hoffman, Vice Chairman, Barclays; Richard Laing, Chief Executive CDC; John Studzinski, Senior Managing Director, Blackstone Group; Rahul Bajaj, Chairman Bajaj Auto, Anil Khandelwal, Chairman, Bank of Baroda; Naina Lal Kidwai, Country Head HSBC; and ICICI CEO KV Kamath. The business leaders will discuss ideas and exchange views and experiences on how to grow in a fast changing global business environment.
The Commonwealth Business Council (CBC) will also release the much-anticipated report on Indo-UK Trade in March 2008. The submission is based on the Council's ongoing work to achieve its objectives which is to promote global trade and investment.
UK and India are engaged in one of the most profitable and significant bilateral trade and investment partnerships in the world. Increasingly, most major British companies consider it essential to have partnerships in India. And a growing number of Indian companies are getting on the LSE and the AIM listings.
I have through the CBC worked very closely with business leaders and government ministers to enhance bilateral trade and strike up partnerships in areas of finance, technology and innovation. A lot of work has gone into trade liberalisation. CBC also regularly organises business meetings in London with visiting Indian ministers.
Highlighting the growing influence of India, CBC is hosting its annual Global Business Leaders Forum on March 18-19 in Mumbai to be attended by Paul Skinner, Chairman, Rio Tinto; Gary Hoffman, Vice Chairman, Barclays; Richard Laing, Chief Executive CDC; John Studzinski, Senior Managing Director, Blackstone Group; Rahul Bajaj, Chairman Bajaj Auto, Anil Khandelwal, Chairman, Bank of Baroda; Naina Lal Kidwai, Country Head HSBC; and ICICI CEO KV Kamath. The business leaders will discuss ideas and exchange views and experiences on how to grow in a fast changing global business environment.
The Commonwealth Business Council (CBC) will also release the much-anticipated report on Indo-UK Trade in March 2008. The submission is based on the Council's ongoing work to achieve its objectives which is to promote global trade and investment.
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