Insight India Issue 4 by UK India Business Council

A NEW WORLD, A NEW INDIA

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INSIGHT INDIA

CONTENTS

ISSUE 04 | JUNE 2017

A NEW WORLD, A NEW INDIA

04 FOREWORD

Richard Heald OBE, Group Chief Executive, UK India Business Council

16 COVER STORY A NEW WORLD, A NEW INDIA INSIGHT INDIA is the UK India Business Council’s flagship publication, which highlights business opportunities between both countries, predicts trends, profiles success stories, offers tips and practical advice, and carries in-depth interviews and analysis with business leaders and policy makers.

Richard Heald OBE and Simon Garland Jones, UK India Business Council

Editor Simon Garland Jones Simon.Jones@ukibc.com

12 THREE YEARS OF MODI

Kevin McCole and Divya Dwivedi, UK India Business Council

Printed in the UK by The Magazine Printing Company, using only paper from FSC/PEFC suppliers. www.magprint.co.uk

21 THE BIG QUESTION

As the country celebrates 75 years of Independence, what is the one change or reform that India should make to deliver the “New India” Mr Modi wants to see?

22 IN FOCUS: HIGHER EDUCATION IN INDIA Tara Panjwani, UK India Business Council

24 IN FOCUS: INDIA’S GOODS AND SERVICES TAX We asked three experts to outline what they consider to be the main challenges that GST will face over the coming years and months

For magazine enquiries please contact comms@ukibc.com

26 ELEPHANTS ON PARADE ACROSS INDIA Ruth Powys, CEO of Elephant Family

UK India Business Council HEAD OFFICE 12th Floor, Millbank Tower 21-24 Millbank London SW1P 4QP United Kingdom

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Mr Ajay Piramal, Chairman of Piramal Group Simon Garland Jones, UK India Business Council

MISSION STATEMENT

The fact that the UK is the No 1 investor in India reinforces this. Through our insights, networks, policy advocacy, services and facilities, we support UK businesses to achieve this success.

15 FORGING THE FUTURE

16 A NEW INDIA: MODI’S CAMPAIGNS

Published every six months, the magazine is aimed at business people interested in bilateral trade opportunities between India and the UK.

We believe passionately that the UK-India business partnership creates jobs and growth in both countries, and that UK businesses have ideas, technology, services and products that can succeed in India.

10 UKIBC NEWS ROUND UP

ELEPHANTS ON PARADE ACROSS INDIA

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02 Issue 04

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FOREWORD THE UK-INDIA PARTNERSHIP IS EVER-MORE IMPORTANT IN A CHANGING WORLD

Dear Reader, Much has happened since the last edition of Insight India. The triggering of Article 50 in March made Brexit much more of an immediate reality. This has already led to a tangible increase in both G2G and B2B activity within the UK India economic corridor recent months. The remarkable State election results in early March, most noticeably in Uttar Pradesh, has put the ruling BJP party and the NDA coalition into a strong position with regards to the next Indian General Election in May 2019. Key will be how Prime Minister Modi decides to grasp the dual opportunities of a relatively weak opposition and a potential majority in the Rajya Sabha prior to the Central Elections. Will he use his strength as an opportunity to push through with further reforms – on top of GST – in areas such as labour and land reforms? Conversations with senior members of the Administration would indicate that there is a fair chance that he will be bold. This is positive. The combined impacts on the economy of “demonetisation” and the introduction of GST are becoming clearer. The payments systems for both the corporate and retail sectors are undergoing significant digitisation. The informal business sectors are being forced to upgrade their practices across segments. OEMs and Primes are reviewing their supply chains to ensure that their suppliers are GST compliant. Against this background and perhaps also because of it, our confidence in terms of the UK-India economic relationship remains very positive. Also since our last edition, Prime Minister Theresa May has visited India, in what was her first bilateral visit outside Europe as prime minister. This was no coincidence. The UK and India matter to each other, and we set out in this edition why both countries will increasingly benefit from working together.

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India’s commitment to the UK remains undiminished. In April, Grant Thornton and the Confederation of Indian Industry (CII) launched their 4th annual “India Meets Britain Tracker” which monitors the latest trends in India’s investments into the UK. India remains the 3rd largest source of FDI into the UK. At the same time, Sterling Assets 2017 (published by the Confederation of British Industry (CBI), in partnership with PwC and the UKIBC) noted that UK remains the largest G20 investor in India, and indeed, one in 20 Indians employed in the private sector works for a UK company. ‘THE UK AND INDIA The UK’s exports continue MATTER TO EACH to grow, and are growing OTHER, AND WE while those of Germany, SET OUT IN THIS France and Italy decline. EDITION WHY These facts and figures BOTH COUNTRIES WILL demonstrate the strength INCREASINGLY BENEFIT FROM of the relationship and the WORKING TOGETHER.’ strong business eco-system that the UK’s private sector has built in India. The political dialogue between India and the UK is improving too. In the past few months we have seen successful visits of the Rt. Hon Greg Clark MP, Secretary of State for Business, Energy and Industrial Strategy as well as separately by the Rt. Hon Sir Michael Fallon MP, Secretary of State for Defence. The Chancellor of the Exchequer, Rt Hon Phillip Hammond MP, also led a delegation to Delhi and Mumbai during this same period. The main thrust of his visit was to promote the financial services and tech industries – both UK areas of expertise and in which India too has significant potential. There are a number of factors driving the expanding business-to-business opportunity. Firstly, the obvious one - the fast growth of the Indian economy. With full year GDP growth at 7.1% in 2016-17, India is the world’s second fastest

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growing large economy. By 2030, it will also be the third largest, behind only the USA and China. The Government of India is playing its role in this growth story. Prime Minister Narendra Modi’s bold economic reforms are reducing red tape and increasing investment. India’s demographics are also compelling. With 600 million of its 1.3 billion people under the age of 24, India has the biggest youth population in the world. And these young people are increasingly well educated, ambitious and affluent. As this youth demographic, and their parents and grandparents, enjoy increasing disposable incomes there is a change in their consumption behaviour, creating a greater demand for white goods, cars, mobile phones, leisure items, travel, education, healthcare, fashion and beauty items, and food and drink. In particular, there is a growing demand for Western brands in all these categories.

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Alongside this consumer market, there are a significant number of Indian businesses that want to buy British. There is no doubting that India is the UK’s key post-Brexit opportunity. And that the UK is a huge opportunity for India. This edition of Insight India is therefore important, as it sets out the ways in which the UK-India “unbeatable” partnership can develop further still as both countries establish their new places in an ever-changing world.

Richard Heald OBE Group CEO UK India Business Council

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UKIBC VIEW:

A NEW WORLD, A NEW INDIA

UK India Business Council’s Richard Heald OBE and Simon Garland Jones look forward to a new world, and a new India

A NEW WORLD There can be no doubting that the coming years will see the world change. The twin political earthquakes of the UK’s Brexit vote in June 2016, and the election of Donald J. Trump as President of the United States of America in November set the tone for what’s to come. These events, combined with the rise of China as an economic superpower, pose great challenges for both India and the UK in a new, more competitive world.

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In the UK, preparations for Brexit are well under way, and the UK Government has been very clear that the decision to leave the European Union will not lead to Britain withdrawing from the world. On the contrary, ministers have pledged to create a new ‘Global Britain’ – a country that is outwardlooking, trade-focused, and indeed, India-focused. Both Theresa May, and her predecessor as Prime Minister, David Cameron, were clear in their intention to make India a key trading partner. Indeed, Mr Cameron received Mr Modi in London two years ago, and Mrs May made India her first bilateral

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‘IN THE UK, PREPARATIONS FOR BREXIT ARE WELL UNDER WAY, AND THE UK GOVERNMENT HAS BEEN VERY CLEAR THAT THE DECISION TO LEAVE THE EUROPEAN UNION WILL NOT LEAD TO BRITAIN WITHDRAWING FROM THE WORLD.’

The effects of President Trump on international trade still remain unclear

international visit outside Europe, even before the customary call on Washington. Further still, there has been a visit to London by India’s Finance Minister, Arun Jaitley, in February this year, which was reciprocated with visits to India by Chancellor Phillip Hammond, Defence Secretary Michael Fallon and Business Secretary Greg Clark in the first half of April. The mood music is undoubtedly positive, and it is clear that a United Kingdom outside the European Union could spell good news, not just for UK-India trade, but the UK’s trade with the wider world overall.

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The effects of the election of Donald Trump on international trade, and on both India and the UK, are less clear. The President has already torn up the Trans Pacific Partnership (TPP), and has flirted with protectionist rhetoric on many occasions – both during the campaign, and since his inauguration. However, Trump has stepped back from some of his hard-line protectionist campaign rhetoric. He has not withdrawn the US from the North American Free Trade Agreement (NAFTA) – as many thought he would – and he has struck a deal with China to liberalise certain aspects of trade between the two countries. So, rather than completely disowning free trade, Mr Trump – who of course is a businessman is advocating “fair trade”. That said, his review of H1B visas, and commitment to “Buy American, Hire American” are already having negative consequences for India. Recent layoffs in India’s IT industry are a direct result of this change in US policy, and the President’s commitment to “America First” could certainly strain the India-US relationship, which is based primarily on business rather than deep cultural bonds. This, combined with the emergence of China as an economic superpower, will pose great challenges for Modi’s government. In particular, China’s ‘silk road’ policy, aimed at creating an economic corridor around India, all the way through the Pakistan and eventually Europe, opens up a significant obstacle for India’s economic ambitions. Indeed, India’s decision to boycott China’s recent Belt and Road Forum in Beijing offers a glimpse into the tensions surrounding this issue – particularly in relation to the China-Pakistan Economic Corridor (CPEC). Prime Minister Modi’s ‘Act East’ pivot to Asia has formed part of his response to China’s rise, and Japan and India are planning an alternative to China’s “One Road, One Belt” plans and the CPEC. The rise of China, Trump’s America, and Brexit have all, well and truly, shaken the kaleidoscope. At the same time, India is not standing still.

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A NEW INDIA “I am seeing a new India” declared Prime Minister Modi in March this year as his BJP party swept to victory in state polls in Uttar Pradesh and Uttakarand. He isn’t wrong. Since Mr Modi came to power in May 2014, Indian economic growth initially accelerated past that of China, and has since stabilised at 7.2% for the year 2016-17. Lower inflation and interest rates, e-government programmes to cut red tape and

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corruption, and a new bankruptcy law have all helped to boost business and consumer confidence. Add in the bold decision on demonetisation and the rollout of the growth-boosting Goods and Services Tax and there are clearly huge changes that, after some short-term downsides, will change the face of the Indian economy. Other transformations that haven’t received as much coverage outside India are having an impact too. The ‘Mudra Scheme’ – which allows Rs 1000 loans to encourage entrepreneurism among those on low incomes – and the decision to introduce

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‘THE INDIAN GOVERNMENT KNOWS THAT IT NEEDS TO CONTINUE TO MAKE THE OPERATING ENVIRONMENT COMPETITIVE – IN AN INCREASINGLY COMPETITIVE WORLD.’

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compulsory bank accounts have both changed India. There have been 300,000 Mudra loans in Uttar Pradesh alone, and there are now 820 million bank accounts in India. This is all positive and the levels of inbound investment have been improving year on year, but significantly more investment is required to meet the important infrastructure and economic imperatives which underpin India’s continued growth. The Indian Government knows that it therefore needs to continue to make the operating environment competitive – in an increasingly competitive world.

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LOOKING TO THE FUTURE Moving forward, a new India will begin to take shape in many ways, and each will offer new opportunities for UK-India collaboration. First, investment in, and better delivery of, India’s infrastructure – roads, ports, railways, and urban regeneration - will all boost the economy and livelihoods in India. As the world’s most advanced ID system – the Aadhaar scheme – now covers a staggering 1.1 billion of India’s 1.3 billion inhabitants, there will be ever-more innovative applications that transform how Indian governments engage with their citizens, including how increasingly-smart cities are managed. When Aadhaar is combined with greater financial inclusion and the almost ubiquitous mobile phone, one can only begin to wonder at how India will transform. The education sector too is an area that will see significant change. And technology will play a role, as will ever-more UK universities. For India to meet its higher education objective – an increased gross enrolment ration of 30% by 2020 – it will need to build 1,500 new institutions. Or, introduce a blended delivery model that uses on-line alongside more-traditional classroom learning. With the digital India campaign rollingout broadband to rural areas, the digital infrastructure is being put in place. Higher education capacity will also be enhanced by more foreign universities participating in India. This will be in partnership with the best and most ambitious Indian institutions in the public and private sector. Much has changed in India, and there are more changes to come. All of this offers exciting opportunities for UK businesses. Prime Minister Modi described the UK-India partnership as “unbeatable.” Now, both countries must rise to the challenges and, indeed, the ever-expanding opportunities in a new India and a new world.

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UKIBC NEWS ROUND UP A round up of the latest news and insights from across the UK India Business Council’s membership network

LONDON

THE TATA INNOVATION SHOWCASE 2017 On March 20 Tata Limited hosted the Tata Innovation Showcase, its third European annual reception, held at the Royal Society in London. Eleven Tata companies and three partner organisations came together to demonstrate how Tata is driving innovation and leading advances in science and technology. The evening also provided a chance to celebrate the partnership between Tata and the Royal Society, who together have established nine Tata University Research Fellows in the areas of

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physical sciences and engineering over a period of ten years. Guests were shown a prototype of the unmanned vehicle that Tata Communications and its partner TeamIndus plan to launch to the moon, with the aim of winning the $30 million Google Lunar XPRIZE the largest international incentivised prize competition aimed at developing low-cost robotic space exploration. Back on earth, Jaguar Land Rover showed how it is using cutting edge virtual reality technology to pioneer change in the car-buying experience. Customers will no longer have to wait for newly launched vehicles to arrive in their local showroom. Even before vehicles are available, retailers will be able to connect customers to a virtual tour where they can see and interact with a life-size model through a VR headset. Tata has always put the needs of the communities it serves at the heart of what it does. This couldn’t have been clearer than in the Tata Consultancy Services DigitalEmpowers initiative, a celebration of the role technology plays in improving lives, and exploring how digital disruption is already empowering communities across the world. TCS gave a fascinating insight into how farmers in India are using smartphones to protect their crops, and how drones are helping to save endangered animals and protect forests in Europe.

GURGAON

UKIBC HOST UK MINISTERS IN NEW GURGAON OFFICE In April, the UK India Business Council hosted Mark Garnier, and Lady Neville-Rolfe, both ministers in the Department for International Trade, at the organisation’s new office in Gurgaon. Both attended a roundtable for a positive discussion around the future of UK-India trade. Our CEO Richard Heald chaired the meeting, and it was also attended by several senior Indian business figures.

LONDON

RICS HOST UKIBC MEMBER EVENT ON ‘MODI’S CAMPAIGNS’ UK India Business Council guests met on 12 April for the first event in a series that will ask the audience to reflect on their experiences in India, three years into the Modi Government. Hosted by RICS, members presented questions to HE Mr YK Sinha, High Commissioner of India to the UK, David Whittleton, Deputy Chairman, Arup, Philip Bouverat, Director, JCB and Kevin McCole, Chief Operating Officer, UK India Business Council. The take-home message from this first event was positive. There is growing momentum and growth, and change is certainly occurring.

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REGIONS

BUSINESS WEST GLOBAL REACH PROGRAMME ANNOUNCED The UK India Business Council has been chosen as Business West’s sole delivery partner, in support of their ‘Extend Your Global Reach’ programme, supported by the Department for International Trade. Under this programme, UKIBC will work with Business West to support

LONDON

DELHI

UK CHANCELLOR PHILLIP HAMMOND “BANGS THE DRUM” FOR UK BUSINESS ON INDIA VISIT The Chancellor led a highlevel business delegation for talks in Delhi and Mumbai in April, alongside the Governor of the Bank of England Mark Carney and government ministers, including the Commercial Secretary Baroness Neville-Rolfe, and International Trade Minister Mark Garnier who paid a visit to the UK India Business Council’s new office in Gurgaon. The visit was part of the annual UK-India Economic and Financial Dialogue and the Chancellor’s delegation includes some of the

UK’s most experienced leaders in financial services and some of Britain’s most exciting Fintech entrepreneurs.

LONDON

PATRICIA HEWITT RECEIVES LIFETIME ACHIEVEMENT AWARD AT INDIA INC’S “UK-INDIA AWARDS 2017” IN LONDON Our Chair, Patricia Hewitt, was awarded a “Lifetime Achievement Award” in recognition of her support to UK India relations throughout her career and her contribution as Chair of the UK India Business Council for the past 8 years. The “UK-India Awards”, organised by India Inc., recognised the contributions of 100 key individuals in politics & public life, in business & professional

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30 businesses in the South West of England to enter and expand into the Indian market. UKIBC will also provide the Launchpad service to Flood Control International which will help them to identify dedicated consultants to support their activity in India.

ARUN JAITLEY VISITS LONDON Mr. Jaitley visited London in March with a delegation of business leaders with the aim of drumming up business in the UK. On arriving in the UK, Mr. Jaitley attended a reception organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), the British Council and Indian High Commission. He performed a market opening ceremony at the London Stock Exchange followed by a roundtable meeting with prospective issuers and leading investors and fintech leaders among others. At the UK India Business CouncilFICCI event Mr. Jaitley addressed over 100 senior business leaders in a discussion session chaired by James Kynge, Emerging Markets Editor at the Financial Times.

sectors, and in arts and culture, to improving relations between India and the UK. We are delighted that the contribution of UK India Business Council was widely recognised in the list of the 100 most influential people in UK India relations – including our CEO, Richard Heald, who was named in the list, along with several of our Members, Board and Advisory Council.

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THREE YEARS OF MODI UK India Business Council’s Kevin McCole and Divya Dwivedi look back on Prime Minister Modi’s transformative three years in office, and the challenges ahead

May 2017 marked three years since Narendra Modi took office with an overwhelming mandate to change India - to revive its economy and create jobs, opportunity and prosperity for India’s growing, young, and aspirational population. Has he succeeded? Some commentators have described Prime Minister Modi’s first three years in office as economic tinkering and consider that he has failed to deliver the complete overhaul some had anticipated or, indeed, hoped for. That judgement is unfair. Sustainable economic and social reform has to be incremental, particularly in India’s democratic and federal structure. The last three years have seen gradual, persistent, and important reforms. Some of these have been recognised and widely discussed by the UK investor community, and some have been less-well publicised in the UK but are perhaps more transformational for India. So, what has changed?

Making it easier to invest

UK business has welcomed the liberalisation of FDI in most major sectors and has leapt at the opportunities, particularly in insurance, defence, and retail. Wider FDI liberalisation, in infrastructure, railways, telecoms, coal, and mining have also created positivity about, and investment in, India. Overall, the Make in India campaign has attracted a staggering USD 101 billion since it was launched in 2014. UK businesses are voting with their cash, and they’re voting for India.

Making it easier to operate

UK businesses also welcome the efforts to improve the ease of doing business. The drive from the Centre and adoption by States is creating a positive “competitive federalism” – a race to the top to create

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the most welcoming environment for investors. UK India Business Council members tell us they like the approach and the “tone from the top”, and they understand that it will take time for new practices to percolate across all states and down through the bureaucracy. Another feature of the last three years – making e-governance central to the delivery of public services and central government approvals – has greatly improved transparency and significantly reduced delays. Of course, there is also the Goods and Services Tax (GST). This historic reform will require all transactions (except for the smallest businesses) to be recorded online. This will expand the formal economy, increase transparency, and grow government revenues as the informal economy shrinks. We must also mention the Insolvency and Bankruptcy Code, which was warmly welcomed by business and will simplify the ease of doing business.

Wider social and economic reforms

Wider reforms are transforming India. These, indirectly, will benefit UK businesses as they are increasing GDP per capita and improving the supply side of the economy by providing better infrastructure (physical and digital) and better skilled people to work in increasingly sophisticated 21st century industries.

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power plan. In January 2015 the Government targeted US$100 billion in investment and 100 GW of solar capacity by 2022. The scale of this ambition is perhaps best appreciated when considering that the world’s total solar capacity in 2014 was 181GW. India is also developing off-grid solar power for local energy needs. This will transform the livelihoods of the hundreds of millions of people living in rural India.

Restructuring and re-energising the skill ecosystem

Prime Minister Modi’s pledge to ‘Make in India’ has revitalised the countries’ manufacturing industry

Infrastructure investment

India’s transport infrastructure is seeing more investment and more-efficient delivery. For example, highway construction projects, which had stalled in the last years of the UPA 2 Government, have been cleared and construction accelerated significantly. New and expanded sea ports, inland waterway ports and airports have also been announced with development underway. The ‘Digital India’ programme is taking broadband into rural areas, transforming the way healthcare, education, and retailing are delivered. The energy sector has also seen dramatic change. For example, State utilities have been freed from their debt burden with the introduction of Ujwal Discom Assurance Yojana (UDAY) bonds providing a financial turnaround and revival package. India is also implementing an ambitious solar

‘HAS MR MODI HAD AN IMPACT? THE SHORT AND CLEAR ANSWER IS YES. AND THAT IMPACT HAS BEEN POSITIVE.’

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UK investors in India have responded with enthusiasm to the Government’s sharp focus on skill development. As the economy grows and more foreign investors set-up operations in India, an ever-larger and moreskilled workforce is needed. The Government’s ‘Skill India’ campaign, which focuses on enhancing employability and job opportunity through both Apprenticeship and Entrepreneurship, will provide job-ready talent, which will enhance productivity and ultimately aid economic growth. It is worth highlighting one specific programme – “Skill Strengthening for Industrial Value Enhancement” or, to use its catchier acronym, STRIVE. This will launch in 2017-18 and train a staggering 35 million young people.

Inclusive growth

The Jan Dhan-Aadhaar-Mobile (JAM) trinity is little-understood outside India, but it and its individual components are transforming the country. Jan Dhan is the hugely successful financial inclusion scheme which has seen the number of bank account holders increase by hundreds of millions since its launch on 15 August 2014. Aadhaar is the scheme which gives every Indian citizen a biometric ID card, which they can use to access public and private sector services. And the “mobile” in the trinity relates to mobile phone numbers, of which there are almost an incredible one billion in India. By linking these three schemes, the Government of India has reduced leakages from welfare programmes, improved inclusion, and put welfare payments directly into the hands of those who need them most. Taken together, investment into India’s infrastructure, skilling reforms and transformational impact of Jan Dhan-Aadhaar-Mobile are creating a new India - an India that is able to meet the aspirations of its people.

Strong at home, strong abroad

Prime Minister Modi’s agenda of economic and technological reform is aligned to his approach to foreign policy. Mr. Modi has driven a proactive foreign policy, and has worked tirelessly to reclaim India’s lost strategic clout. The Prime Minister is re-positioning India as a more competitive, confident, and secure country, with real influence in the world.

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A robust foreign policy, however, can only be sustained on the foundation of a strong society and domestic economy. So, continuing to strengthen India at home will continue to strengthen India abroad.

India matters to the UK, and the UK matters to India

So, have Mr Modi’s first three years in power been good for the UK-India relationship? Certainly, the UK and India have a stronger relationship now that they did before Mr Modi came to power. His visit to the UK in November 2015 solidified the already strong economic relationship and reminded both countries of the incredible people-to-people links that hold us so tightly together. And the fact that Theresa May made India her first bilateral visit after becoming Prime Minister was telling. India matters to the UK, and the UK matters to India. India was the third largest investor in the UK in 2015-16. And, as Indian companies benefit from a stronger home economy, more and more will want to go global. Despite the uncertainty in advance of the Brexit negotiations, Indian businesses continue to say the UK remains their most natural international base. At the same time, the UK has long been the largest G20 investor in India. So, UK businesses are clearly enthusiastic about the opportunities in India. This interest is diverse, spanning a range of sectors - from chemicals to food processing to advanced manufacturing to petroleum and natural gas, along with many more. Given the growing market and strong businessfriendly political leadership, UK businesses are looking to invest more, and more quickly, in India. But the full potential will only be realised if governments – in States and at the Centre - deliver further reform and, just as importantly, these changes are implemented at the operational levels of the bureaucracy. From the work the UK India Business Council has done since June 2016, there is clearly a desire from business for a UK-India Comprehensive Economic

Below: Nagpur, Maharashtra – included in Prime Minister Modi’s third round of ‘Smart Cities

Partnership Agreement. This would allow both countries to deepen the investment relationship, boost the trade relationship, and leverage the complementarity that exists between the two economies. For example, a deal that encourages greater participation in India’s economy by tech-rich UK businesses and universities will significantly boost the Make in India programme. Similarly, a reduction in tariffs would boost Indian textiles exports to the UK, and spur more partnerships in technical textiles. There are win-wins to be had.

Unfinished business

Has Mr Modi had an impact? The short and clear answer is yes. And that impact has been positive. Despite the initial disappointment of some who had hoped Mr. Modi would make more reforms more quickly, India’s economy has been performing much better relative to other countries, and much better than before Mr Modi and his party took over in New Delhi. And all the signs are that this trend will continue and, indeed, accelerate. There are, though, measures that the Government of India can take to further boost investor sentiment: reduce the tax burden; set-out medium and long-term spending plans in major areas such as infrastructure and defence; ensure the smooth implementation of the GST, with the tax authorities showing flexibility when companies have teething challenges with the new system; and pass legislation to remove the retrospective tax provision from Indian law. Political pundits are confident that Mr Modi will win the 2019 election, which means we can expect seven more years of BJP government. This provides the time and electoral space to make further bold reforms and to strike a win-win trade deal with the UK after Brexit. If these reforms take place and a comprehensive trade and investment deal can be struck, then the current UK-India economic partnership, brilliant though it is, will be eclipsed.

Kevin McCole is Chief Operating Officer, and Divya Dwivedi is Communications and Policy Manager at the UK India Business Council

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FORGING THE FUTURE

The world is changing, and with it so are the relationships that intertwine across it. Mr Ajay Piramal, Chairman of Piramal Group, and Co-Chair of the UK-India CEO Forum, considers the challenges ahead for the UK-India story in an ever evolving world

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The India-UK relationship currently stands at an inflection point. This offers great opportunities for both countries to flourish in the fast-evolving global economic landscape. The UK has been the largest G20 investor in India since 2000. UK companies currently employ around 788,000 people across India – one in 20 of all organised private sector jobs in the country. At the same time, India is the third-largest investor in the UK with Indian companies investing more in the UK than the rest of the EU combined. More than 800 Indian companies currently operate in the UK, employing more than 110,000 people. In the past, the India-UK relationship has been aided by the strong historical and linguistic commonalities of the two economies. As we look to the future, it is the complementary nature of their aspirations and resources that will fuel growth. For example, expertise from the UK’s mature financial services sector can leapfrog India’s drive for financial inclusion. The Indian Government is driving a raft of measures and initiatives, such as ‘Make in India’, ‘Skill India’, ‘Digital India’, and the introduction of the Goods and Services Tax – all tasked with accelerating economic growth. These long term “nation building” initiatives require global partnerships, investments, and support – the UK is a trusted partner in this journey. Similarly, as the UK looks at a post-Brexit scenario, India offers significant opportunities for its financial, manufacturing and services industries. In this context, a deep collaboration by the governments of both economies over the next five years will define the growth trajectory of this

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relationship. Both governments need to mutually establish the right set of enablers required for this relationship to truly achieve its potential. These enablers could come in the form of a reduction in barriers for bilateral investments and trade, a stable regulatory environment, increased talent mobility and the protection of intellectual property rights. Setting these enablers would have significant benefits not just for trade but also for the social sector – for example, the NHS in the UK could benefit significantly by leveraging India’s strength in generic drug manufacturing and healthcare talent. ‘AS WE LOOK What bodes well for the future TO THE FUTURE, of the India-UK relationship is IT IS THE the acknowledgement of its COMPLEMENTARY importance and the commitment NATURE OF THEIR shown to strengthen it by the ASPIRATIONS AND RESOURCES leaders of both countries. THAT WILL FUEL GROWTH.’ Establishing the India-UK CEO Forum is testament to the strong resolve and conviction demonstrated by both governments in this regard. Through the individual workstreams led by business leaders from both countries, the Forum is laying down the key opportunities, and the barriers to realising them, while offering actionable recommendations for the governments to remove these barriers. If the support received by the Forum thus far is an indicator of the commitment of the governments to make this happen, then the India-UK relationship can transform into a truly game-changing partnership over the next decade.

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COVER STORY “I am seeing a new India, the India of the dreams of the youth. A new India that fulfils the aspirations of our women. A new India that is about opportunities for the poor... The poor are saying,’ I want to progress and I seek the opportunity from you’.” These were the words of Prime Minister Narendra Modi in March this year, as he celebrated his

Bharatiya Janata Party’s (BJP) overwhelming victories in assembly elections in Uttar Pradesh and Uttarakand. The Prime Minister is set on ensuring his pledges for a “new India” are not just empty words. To this end, he has signalled his determination to enact transformative change on the country through the creation of several different campaigns – each with unique aims, and each a major step towards creating a ‘new India’.

A NEW INDIA: MODI’S CAMPAIGNS

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UK India Business Council’s Simon Garland Jones looks at Prime Minister Modi’s many campaigns as we approach the penultimate year in his first premiership

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Since coming to office, Mr Modi has announced the creation of no less than six such campaigns – all tasked with bringing about significant change in their specific fields. They include: 1. Digital India 2. Make in India 3. Smart Cities Mission 4. Start-up India 5. Clean India Movement 6. Skill India

1. DIGITAL INDIA

Left: Bandra Worli Sea Link (Rajiv Gandhi Sea Link), Mumbai, India

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This flagship programme of Ravi Shankar Prasad’s Communications Ministry has the central aim of creating a knowledge economy and good governance in India. It is the Prime Minister’s view that policies promoting the spread of high-quality digital products and services can certainly go a long way to deliver rapid business growth, innovation, and investment across the economy. There can be no doubting that this vision of a ‘Digital India’ is a powerful one, which has the potential to thrust India head first into a digital age that looks set to encompass more and more aspects of everyday life as we move forward. In a country the size of India, innovative business applications and public services delivered digitally hold huge potential for the economy, but Modi’s establishment of this campaign, is in some ways, a response to the fact that the pace of development thus far has been too slow. ‘Digital India’ aims to invest $16 billion into the support structure including communications and other public infrastructure. In India’s new industrial hot-spots, such as the Delhi-Mumbai Industrial Corridor and in its Smart Cities, this infrastructure will satisfy the demand for highperformance connections, reliable data centre support and high-quality services. Further still, the government’s demonetisation policy – announced unexpectedly in November has contributed to a rise in digital banking and cashless transfers – making further progress towards Modi’s dream of a ‘Digital India.’

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2. MAKE IN INDIA

Prime Minister Modi’s landmark ‘Make in India’ programme is in many ways the flagship in his reform armada. The major objective behind the initiative is to focus on job creation and skill enhancement in 25 separate sectors of the economy, while also delivering high quality standards and minimising the impact on the environment. It is a programme that Modi has played up as the crucial plank in India’s growth story, and a key creator of jobs for India’s growing pool of young workers.

‘THERE HAS BEEN SIGNIFICANT COLLABORATION, AND SHARING OF EXPERTISE BETWEEN UK AND INDIAN COMPANIES AS PART OF THE SCHEME - SEEN MOST RECENTLY IN THE DEFENCE SECTOR.’

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But perhaps the programme’s biggest success has been its ability to attract increased foreign investment into India, from countries eager to collaborate. This had led to India emerging as the top destination globally for foreign direct investment (FDI), since the introduction of ‘Make in India,’ surpassing both the United States of America and China, receiving US$75 billion in FDI in 2016-17. This willingness to include foreign involvement in the campaign has spelt good news for UK companies. There has been significant collaboration, and sharing of expertise between UK and Indian companies as part of the scheme - seen most recently in the defence sector, where UK Defence Secretary Michael Fallon and Finance Minister Arun Jaitley, agreed in April 2017 to enhance defence ties based on the joint development and production of weapons at Indian facilities, under the ‘Make in India’ umbrella. This truly is a transformative campaign, and its global status has acted as an inspiration for other similar campaigns around the world. Indeed, President Trump’s promises to ‘Make in America’ during the US election campaign almost had a Modi-esque echo.

Above: Chennai, one of Modi’s first wave of Smart Cities

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4. START-UP INDIA

3. SMART CITIES MISSION

The ‘Smart Cities Mission’ aims to develop and modernise 100 cities across the country, making them citizen-friendly and sustainable. The Ministry of Urban Development is responsible for implementing the mission in collaboration with state governments, and selected cities will be allocated USD$10 billion over a span of five years. Since it was launched in June 2015, 33 cities have been chosen to be supported by the ‘Smart Cities Mission’. Many companies have expressed enthusiasm about the initiative, which if successful, has the potential to have far reaching effects across the whole country, and offers huge scope for UK-India partnership. The ‘Smart Cities Mission’ also links well with the Prime Minister’s “Digital India” programme, as he looks to build them around the latest optical fibre networks. “Cities in the past were built on riverbanks. They are now built along highways. But in the future, they will be built based on availability of optical fibre networks and next-generation infrastructure,” he said, upon launching the Mission. The programme is already well under way, with Smart Cities appearing all over the country, including Kochi Smart City, Gujarat International Finance Tec-City (GIFT) in Ahmedabad, Naya Raipur in Chhattisgarh, Lavasa in Maharashtra and Wave Infratech’s 4,500-acre smart city near New Delhi. The wider aim is to create industrial corridors between India’s largest cities – Delhi-Mumbai, Chennai-Bangalore, and Bangalore-Mumbai. The more ‘Smart Cities’ there are along these corridors – the further the spread of digital innovation. It is becoming clear that this a programme that, if successful, would piece together several parts of Modi’s vision of a ‘new India.’

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‘Start-up India’ is an initiative first announced by Prime Minister Modi in August 2015, tasked with promoting bank financing for start-up ventures, as a way of encouraging entrepreneurship, and thus job creation. One of its aims is to remove obstacles to start-up creation such as land permissions, and environmental clearances. Arun Narayan, part of the UK India Business Council team in India, explains some of the key benefits of the scheme: “The Start-up India initiative by the Ministry of Commerce is a significant step in the direction of promoting innovation and entrepreneurship. The government, through its partners, such as incubators, funding institutions, and others, is looking to provide support and growth impetus to the fledgling start-up ecosystem in India.. A fund in excess of £1 billion has also been set up to

‘THIS IS A GREAT TIME FOR UK VCS AND BUSINESSES TO PARTICIPATE AND BENEFIT FROM ONE OF THE BIGGEST GROWTH STORIES OF THIS DECADE.‘

provide seed and growth stage capital to the companies.” “This is a great time for UK VCs and businesses to participate and benefit from one of the biggest growth stories of this decade. Opportunities exist for funding, technology exchange and frugal innovation among others, all of which can help reignite growth and bring market efficiencies, thus driving down cost in a developed market like UK.”

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5. CLEAN INDIA MOVEMENT (SWACHH BHARAT ABHIYAN)

Swachh Bharat Abhiyan, or the ‘Clean India Movement’ in English, is perhaps the campaign with the most ambitious aim. Truly a visionary idea, this campaign is seeking to clean the streets, roads, and infrastructure of the 4,041 cities and towns in the world’s second most populous country. This is India’s largest ever cleanliness drive, and has brought in around 3 million government employees as participants – illustrating the sheer size of the task at hand. It aims to improve hygiene by constructing thousands of individual, cluster, and community toilets across the country. Prime Minister Modi, on launching the Swachh Bharat Abhiyan, was keen to highlight that this campaign is one that the whole country should get behind, leaving partisan loyalties to one side. “I am not saying that our newly elected government has done everything for sanitation. I praise all governments before me, union

‘THIS IS INDIA’S LARGEST EVER CLEANLINESS DRIVE, AND HAS BROUGHT IN AROUND 3 MILLION GOVERNMENT EMPLOYEES AS PARTICIPANTS – ILLUSTRATING THE SHEER SIZE OF THE TASK AT HAND.’ governments and state governments, corporates and voluntary groups. Cleanliness should not be the job of sanitation workers alone,” he said. If Swachh Bharat is successful, it will have a transformative impact on the lives of millions of Indians – many of whom will be able to enjoy longer, healthier lives as a result. Its potential impact should not be downplayed.

6. SKILL INDIA

In July 2015, Prime Minister Modi launched the ‘Skill India’ initiative which aims to train more than 40 crores (400 million) people in India in a range of skills by 2022. This campaign is about unlocking the substantial, and currently largely untapped, potential of India’s huge working age population. It is potentially revolutionary in its nature, and as India looks to compete with the world’s largest economies in the years to come, upskilling its population will be of vital importance. The campaign covers a variety of areas, and sectors, and includes various initiatives such as: l National Skill Development Mission l National Policy for Skill Development and Entrepreneurship, 2015 l Pradhan Mantri Kaushal Vikas Yojana (PMKVY) l Skill Loan scheme l Rural India Skill l Partnership concept ‘Skill India’ has also opened up new areas for UK-India collaboration, with ‘virtual partnerships’ forming at school level, to enable students from both countries to experience each other’s school systems, cultures, traditions and social structures. In addition, a commitment has been made to achieve mutual recognition of UK and Indian qualifications.

WHAT NEXT? If you are interested in making the most of the great opportunities available in India, please speak to one of our advisors by calling 0800 0196 176 or +44 (0) 207 592 3851 or contact enquiries@ukibc.com

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MS. PREETI SINHA

THE BIG QUESTION

AS THE COUNTRY CELEBRATES 75 YEARS OF INDEPENDENCE, WHAT IS THE ONE CHANGE OR REFORM THAT INDIA SHOULD MAKE TO DELIVER THE “NEW INDIA” MR MODI WANTS TO SEE? Distinguished UKIndia experts answer our big question

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Senior President, YES BANK and Global Convenor, YES Global Institute “India’s population of more than a billion is India’s biggest resource to actualise economic leadership, technological parity and cultural vibrancy by 2022. The country’s biggest opportunity and challenge, therefore, is to transform its huge young population into human capital, not only for gainful employment but also for bridging the technological gap at the micro level with the developed world. It is imperative for India to empower millions of people to unleash their latent potential. Its education skills ecosystem should be a ‘man-making’ infrastructure that could use their intellect and skill sets for solving global issues and bringing large scale societal social economic development. The government’s ongoing efforts in education and skills (Skill India), digital education (SWAYAM), worldclass universities (HEFA) and regulatory reform (UGC restructuring) need to be amplified multiple times in collaboration with the private sector and not-for-profit sectors.”

DOUGLAS FLINT

RT HON PATRICIA HEWITT

Chair, UK India Business Council “Mr Modi’s Government must challenge and support the States to transform India’s public education system through partnerships with innovative businesses and NGO’s; provide education vouchers to BPL families; and promote ‘competitive federalism’ through a league table of independently verified outcomes.”

Group Chair, HSBC “HSBC’s economic research suggests that prudent implementation of the country’s Goods and Services Tax (GST) reform has great potential. It could increase domestic and foreign investment, create jobs and reduce inflation. We estimate that, as currently proposed, the GST will increase annual GDP growth by about 0.4 of a percentage point in the medium term. However, if the government can achieve fewer exemptions and tax rates across goods and services, the economic benefit could double, boosting annual GDP growth by about 0.8 of a percentage point. The GST can clearly play an important role in the emergence of a ‘New India’.”

RAKESH KAPOOR

Chief Executive, RB, Reckitt Benckiser “India is one of world’s fastest growing economies and an influence on the world stage. Prime Minister Modi’s Government has gone further than most to tackle India’s hygiene challenges, but millions still experience inadequate sanitation. To deliver the “New India” that Prime Minister Modi wants to see as his country celebrates 75 years of independence in 2022, the government of India must continue its efforts behind its Swachh Bharat Mission. This ‘Clean India’ ambition has the ability to shape the health and prosperity of the nation for generations to come.”

LORD JITESH GADHIA

Member of UK-India CEO Forum “Proposing a silver bullet for a country as large and complex as India is always perilous, but if pressed to identify a single reform or change that should be prioritised for India at 75, it would be stepping up investment in human capital. India’s ultimate trump card on the world stage is its people. There are currently 23 Indian Institutes of Technology and 21 Indian Institutes of Management either operating or planned. It would be a tremendous gift and legacy to the nation to put in place a concrete plan to increase the total number of these institutes to 75 by 2022, unlocking India’s full potential.”

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l Unemployability of graduates: Quality of higher education delivery is uneven across India. There is a shortage of qualified faculty, a counter-productive separation of teaching, research, and practical vocational skills, and the curriculum is too often not geared towards what today’s (and tomorrow’s) employers are seeking. As a result, too many graduates are ill-equipped to meet the challenges of the future. Of the one million young people who enter the labour market every month, less than 25% are considered employable as per the National Employability Report in 2013-2014. l India’s regulatory landscape: There are restrictions on how foreign universities can operate in India, for example they cannot set up campuses and they are limited in how they can partner with Indian institutions. Foreign faculty staff are also not allowed to take up full-time positions at Indian higher education institutions To address these challenges, the Indian Government is putting in place measures to transform higher education in the country in a way that balances the trinity of cost, quality and scale, while delivering the employment outcomes that young people and employers need. At the same time, Prime Minister Modi has set

IN FOCUS:

Higher Education in India

UK India Business Council’s Tara Panjwani takes a closer look at India’s ever-growing higher education sector EDUCATION

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Bannares Hindu University in Uttar Pradesh is one of largest residential universities in Asia with 20,000 students

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These are challenging and exciting times for higher education in India. The challenge, basically, is how to meet demand for university places and for graduates with the skills and knowledge for the 21st century economy. The excitement is the changes taking place within the sector, and the emerging opportunities for UK universities. The last 30 years have seen a proliferation of private educational institutions and a growth in the number of national Indian Institutes of Management (IIMs) and Indian Institutes of Technology (IITs), along with other state level institutions. However, the growing youth population and a steady expansion of the enrolment ratio from 6% in 1983 to 23% in 2016 means challenges remain. These include: l The unmet demand for higher education: By 2030, India will have the largest number of people of college-going age - a staggering 140 million. Currently 736 universities educate 28.6 million students, so India will need at least another 1500 institutions to accommodate this huge influx of students. Despite strong growth in enrolment, India’s participation in higher education at 23% is still low when compared to 26% in China, 36% in Brazil and nearly 50% in the UK. The Indian government have now set a goal to increase the gross enrolment ratio to 30% by 2020. l The low quality of teaching and learning: The majority of Indian colleges and universities continue to be hampered by issues of quality across the spectrum - a chronic shortage of qualified faculty, mediocre levels of teaching, outdated and rigid curricula, poor governance, lack of accountability and quality assurance and a needless separation of research, teaching and vocational skills training. This situation is exacerbated by unequal geographic and social access to education, low levels of industry-academia engagement and deeply ingrained negative perceptions towards pursuing vocational skills as a career.

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the ambitious goal of making ‘UNTIL QUITE India a world class education hub RECENTLY, and a knowledge superpower. MOST UK To this end, the government is UNIVERSITIES drafting a new education policy FOCUSED that puts internationalisation, PRIMARILY ON STUDENT innovation and international RECRUITMENT WITH INDIA.’ standards of quality at the heart of its agenda. This opens exciting new opportunities for UK higher education institutions to meet India’s demands for high-quality teaching, research, and technology. Given India’s quest for internationalisation and appetite for collaboration, UK universities are ideally positioned to collaborate with Indian institutes to deliver mutually beneficial outcomes. Until quite recently, most UK universities focused primarily on student recruitment with India. However, the new opportunities in India have triggered a desire to forge deeper and more meaningful links with Indian institutes and with Indian corporates. This collaboration could take the following forms: l Joint degree programmes with Indian universities; l PhD projects with research intensive organisations;

Research collaborations in STEM; Digital learning technologies which can take the form of MOOCs (Massive Open Online Course) and blended learning programmes; l Twinning arrangements – teaming up with overseas institutions to offer degrees. Usually twinning programmes enable the students to spend a period of time studying at the campus of the foreign partner. l Business consultancy to Indian universities; l Faculty and student exchange; l Industry engagement (including management training for executives, internship agreements, and leadership training); l Enterprise education, entrepreneurship and linking HE with vocational skills training; and l Carefully targeted student recruitment by establishing partnerships with employers in the UK (particularly Indian-HQ’d employers); There is already considerable UK-India higher education collaboration with local partners for example: l Lancaster University with the JD Goenka Institute l Imperial College Business School with the BML Munjal University l London School of Business with Indian School of Business (together with Kellogg and Wharton) l Indian School of Design and Innovation with WPP and Parsons l Royal Institute of Chartered Surveyors and Amity University However, there is much more can be done to leverage the untapped potential. Our international competitors are arguably ahead of the UK – particularly in the area of research outreach. UK institutions are advised not to wait for legislation from the centre, but to be flexible and creative and take a long-term view to building closer, multi-dimensional relationships with Indian higher education stakeholders, especially private universities and colleges. The private sector, which currently accounts for 59% of all tertiary enrolment, continues to grow rapidly, and is expected to play a significant role in the future expansion of higher education in India. It is important, though, to find the right partner. Not all private sector universities are equal. Looking to the medium term, digital learning technologies will be an enormous opportunity as they will be the catalyst for transforming the Indian higher education landscape and meeting the expanding future student demand. With India on the cusp of an education revolution, UK universities need to be engaging now to make sure they are an integral part of the India story. l l

Tara Panjwani is Sector Manager – Retail, Lifestyle and Logistics, and Policy Manager at the UK India Business Council

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IN FOCUS:

India’s Goods and Services Tax

We asked three experts to outline what they consider to be the main challenges that GST will face over the coming years and months

FINANCIAL, LEGAL & PROFESSIONAL There can be no doubting that India’s introduction of the Goods and Services Tax (GST) is one of the most ambitious tax reforms ever attempted. Narendra Modi’s government have promised a roll-out date of July 2017. With this in mind, and provided there are no major hiccups before then, the face of the Indian economy is set to change forever this summer. In the lead up to this roll-out, we have asked three experts in the field to consider the main challenges that GST faces in its implementation. V. Lakshmikumaran, Managing Partner at Lakshmikumaran & Sridharan, an Indian law firm, highlights the practical challenges ahead: “The GST regime is expected to impact approximately 8 million tax payers in India. It is the first time that a completely IT driven tax administration and compliance system has been developed in India for such a large base of taxpayers. “To make this possible, a robust IT interface is also required to be set up internally by all the major taxpayers. Hence, apart from being an achievement, the upcoming GST poses a challenge for businesses as well as tax officials alike in the initial few years of its implementation. “With GST proposed to be rolled out from July 2017, there is hardly any preparation time left for taxpayers to plan their business transactions and upgrade their IT systems to make them GST compliant. Other consequential issues that are going to affect the taxpayers during the early years of the GST regime relate to classification and valuation of supplies, dual administration, and enhanced compliance costs.”

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Building on practical concerns, Anita Rastogi, Indirect Tax Partner at PwC India, highlights the need for preparedness “in all areas” – particularly on the technological side: “The greatest transformation in India is the upcoming introduction of Goods and Services Tax (GST). GST is quite different from the existing indirect taxation system in the country. Now, every change brings with it individual challenges. “The foremost issue faced by businesses would be to ensure a smooth transition to GST without any business disruption. The key to success is to ensure preparedness in all areas and a focus on the technological backbone – this is important as GST would be a completely e-enabled tax regime with almost negligible human intervention. So technology preparedness is a must and businesses need to focus here. “For government, change management would be a major challenge. For effective implementation of GST, tax administration staff would need to be trained properly in terms of concept, legislation and procedure. Importantly, they would have to ‘learn, unlearn, and relearn’ the aspects of tax on goods and services. It is at this point where the first signs of problems may arise, and this has to be overcome by robust training and rigorous coaching.

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“Proactively looking at the issues and forming upfront strategies to mitigate them is the key to the successful implementation of GST by both businesses and government.” Abanti Sankaranarayanan, Chief Strategy and Corporate Affairs Officer, United Spirits, gives an insight into the concerns of the alcobev industry around the reform, which of course excludes alcohol: “The introduction of the Goods & Service Tax (GST) – a single, nationwide, simplified and comprehensive Value Added Tax in India – heralds in an improved business environment with a much-needed regulatory transparency, augmenting the country’s positon as an attractive investment destination. “However, the alcobev industry’s exclusion from the proposed GST is to the detriment of the government, industry, as well as the consumers. While the output (end-products) are not covered under GST, the input (raw material, allied and ancillary industry costs) are subject to GST. Consequently, manufacturers will face sharp cost increases due to their inability to claim input tax credit. “Currently, the industry is seeking status quo from the Centre and the States on input tax rates, even after GST is implemented. This will offset the

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additional cost pressures on the alcobev industry, especially since price increases require state approval.”

HOPES FOR THE FUTURE

Both Indian and British government officials have been talking up the prospects of GST, with Prime Minister Modi heralding it as a Bill that will “further strengthen the way [India] is trying to accelerate growth and make the economy predictable.” The Prime Minister said that this reform will promote ‘Make in India’, help exports and thus boost employment, while at the same time providing enhanced revenue. He added, “GST will also be the best example of cooperative federalism. Together we will take India to new heights of progress.” Meanwhile, the mood music coming from the UK government has also been positive on GST. Priti Patel, UK Secretary of State for International Development, described the Bill on an official visit to India last year, as “an important piece of reform” that will make India “more attractive when it comes to investment opportunities and also for business to business relationships.” The bar has been set high, but so have the hurdles. It is clear that certain sectors will face challenges, while others will benefit, and as the Indian economy adapts to this change, of course there will be teething problems. The rollout of such a complex reform, is undoubtedly going to encounter practical issues, as noted by our three experts. Yet there is still reason for optimism. Providing these obstacles are overcome, there can be no doubt that this reform remains on course to change the face of the Indian economy forever.

GST QUICK GUIDE What is GST? l GST is a single tax on goods and services across India, applied to manufacturers and consumers alike. l It has been heralded widely as the starting point of a single market across India, improving economic efficiency and productivity. l It will effectively act as a ‘Free Trade Agreement between India and itself,’ in the words of India Economist at J.P. Morgan, Sajjid Chinoy. l It will remove the current web of taxes and tariffs between states, making it much easier to conduct business operations

across the whole country. What will be its format? l GST will be in dual format, meaning it will have a federal structure. l There will be three types of taxes – central, state and integrated GST to tackle inter-state transactions. Which sectors will benefit most? l Manufacturing l Retail and consumer What goods aren’t included? Alcohol lK ey petroleum products l

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ELEPHANTS ON PARADE ACROSS INDIA A vibrant display of decorated elephants in the streets of Jaipur will help protect India’s most iconic animal, says Ruth Powys, CEO of Elephant Family

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November 2017 will see some of India’s leading artists, designers, architects and jewellers band together with international conservation charity Elephant Family to create a vibrant public art spectacle on the streets of Jaipur. 101 colourful elephant sculptures will adorn Jaipur before making their way to Delhi in February 2018 to work their magic on the government and citizens – all to raise awareness and much needed funds for India’s endangered elephants. This 101 figure is highly symbolic as the event is designed to build public support for the creation of 101 elephant corridors throughout India. The corridors recognise that the enormous

development of infrastructure and housing across India has been at some cost to the country’s most beloved and iconic animal. Elephants have increasingly been cut off from areas of water and food supply, bringing them into conflict with humans as they try to find new routes around roads, bridges, railway lines and ditches. The 101 elephant corridors will act as highways for elephants, joining one piece of fragmented habitat to another – keeping humans and elephants safe from each other. Elephant Parade India was born out of the success of a similar event in London in 2010. The British capital went crazy for the Elephant Parade, which saw brightly decorated elephant figures parade across the capital. It became London’s largest outdoor art event on record and truly captured the public’s imagination, reaching an audience of 25 million people. It also generated more than 500 national and international press features and ‘ELEPHANTS HAVE 10 radio and primetime TV hours. INCREASINGLY BEEN CUT The event raised more than $5m OFF FROM AREAS OF with Partners including Sotheby’s, WATER AND FOOD SUPPLY, Quintessentially, Vanity Fair BRINGING THEM INTO and London Evening Standard. CONFLICT WITH HUMANS Elephant Parade India, was AS THEY TRY TO FIND officially launched by the Duke NEW ROUTES AROUND and Duchess of Cambridge last ROADS, BRIDGES, RAILWAY year in Assam, northeast India. LINES AND DITCHES.’ Elephant Family will host the event in celebration of the UK-India Year of Culture in 2017. The conclusion of the event will see the elephants turn from art into cash, and then from cash into elephant conservation – a master feat of alchemy. The main collection of the herd will be sold to the general public to raise funds for their endangered live cousins and their forest homes. The ultimate cream of the crop will then be sold in two high-profile Sotheby auctions, in Mumbai and London. All funds raised will go towards helping Elephant Family, its field partner, Wildlife Trust of India, and three other NGOs to secure the 101 elephant corridors across India to re-establish elephant migratory routes. The aim is a safer environment for villagers and elephants, reducing conflict and providing a brighter future for both.

WHAT NEXT?

Elephant Parade India was launched by the Duke and Duchess of Cambridge and marks the UK-India Year of Culture

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To sponsor an elephant or otherwise get involved in this event please contact CEO of Elephant Family, Ruth Powys, at ruth@elephant-family.org