ON TRADE. World Trade Research and Information Report. For private circulation

Transcription

1 World Trade Research ad Iformatio Report For private circulatio

2 World Trade Cetre Mumbai Committed to excellece i trade ad ivestmet facilitatio through global likages. To foster trade ad idustrial growth through effective ad iovative trade services ad by offerig world class busiess facilities. To promote ad stregthe busiess ad Idia's iteratioal trade through global collaboratios ad coectios. To create a eablig platform for trade research, educatio, traiig ad trade facilitatio. FACILITATE ULTIMATE TRADE RESOURCE

3 The Jauary-March 2016 editio of ONTRADE, focuses o the emergig treds i Idia s start-up idustry. New-age etrepreeurs or start-up eterprises are experimetig iovative busiess models i sectors such as e-commerce, healthcare, fiacial services, e-learig, busiess aalytics. It is very ecouragig to see that Idia s start-up ecosystem is fast maturig with the growth i the umber of icubators, accelerators, veture capital ad agel ivestors, crowd-fudig platforms ad the like. The Govermet of Idia s Start-up Idia Actio Pla, aouced i Jauary 2016, is a ambitious policy framework as it ot oly supports the start-up idustry but it has the potetial to redefie the way busiesses deal with bureaucracy. The Govermet aims to ed Licece Raj ad restrict the role of the state i the ecoomy by improvig the ease of doig busiess through progressive measures like allowig self-certificatio, itroducig start-up portal ad mobile apps for registratio of eterprises. The issue has a rich collectio of articles o the policy framework, ivestmet opportuities ad other emergig treds i the start-up idustry of Idia. We hope that the curret editio would leave you with rich isights o start-up idustry i Idia. Idia s Uio Budget has bee hailed by experts ad idustry captais for its focus o supportig the rural ecoomy, while maitaiig fiscal disciplie. The Post-Budget Sectio of this issue carries views of experts o the implicatio of the Uio Budget i differet sectors. Meawhile, the U.S. Departmet of State (DOS) orgaized its Iteratioal Visitor Leadership Program (IVLP) 2016 o Regioal Ecoomic Coectivity: The North America Free Trade Agreemet (NAFTA) Experiece. We have the pleasure to metio that World Trade Cetre Mumbai was selected as oe of the omiees i this program. The programme comprised of iteractive meetigs with the U.S. Govermet departmets, trade promotio orgaizatios, customs ad borders to discuss the implicatios of NAFTA agreemet o the sigatory coutries (USA, Caada ad Mexico) ad how best the fidigs ad learig could be put to use withi the cotext of Asia s free trade agreemets. This editio features a report of this program. The issue also carries a iterview from Ms. Charlotte Gallogly, Board Director, World Trade Ceters Associatio, New York ad Presidet, World Trade Ceter Miami, where she discusses the role of her orgaizatio i promotig trade i Miami. Durig the quarter, World Trade Cetre Mumbai orgaized a umber of evets icludig, some of the socially relevat evets such as Sustaiability through Social Etrepreeurship, Water Matters: Water For All, FELICE.celebratig the elegace of womahood. Wish you Happy Readig! Y. R. WARERKAR ON TRADE Jauary - March

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6 New Age Startups Tur to Accelerators to Succeed I a iterview, Mr. Ajay Ramasubramaiam, Director, Zoe Startups Idia, highlights the role played by his orgaizatio i supportig techology start-ups. He also explais the sigificat differece betwee a icubator ad a accelerator, both of which are iterchageably used ad ofte cofused, i ay give cotext. Zoe Startups Idia is the oly idepedet techology accelerator i Idia outside ay academic istitutio to receive support from Govermet of Idia. Could you provide us with a overview of your orgaizatio ad the role it plays i a start-up ecosystem? Zoe Startups Idia is a iteratioal footprit of the Toroto-based Ryerso U i v e r s i t y a d i t s t e c h o l o g y acceleratio arm Ryerso Futures Ic. I Idia, Zoe Startups is setup as a joit veture with the Bombay Stock Exchage Istitute ad has its startup accelerator based at the BSE, over a 6,000 sq. ft. space. We provide our startups a world-class ifrastructure ad peer etwork, access to metors, idustry coect, ivestor coect ad techology support ad marketig / busiess developmet support. Your orgaizatio is a collaboratio of BSE Istitute (a subsidiary of the Bombay Stock Exchage), Ryerso Uiversity s Digital Media Zoe (icubator), Ryerso Futures Ic. ad Simo Fraser Uiversity, British Columbia, Caada. What is the role of e a c h o r g a i z a t i o i t h i s collaboratio? Zoe Startups Idia is a joit veture of Ryerso Futures Ic. ad BSE Istitute. BSE leds strog credibility to the program ad exteds support through its wide etwork of corporate ad the govermet. Ryerso Uiversity maages 125 iovatio cetres i Caada - icubators, accelerators, corporate iovatio cetres ad cetres of excellece. Ryerso's icubators ad iovatio cetres are across diverse idustries such as techology, fashio, urba eergy, biomedical, digital media, legal, social vetures, big data, advaced materials - to ame a few. Additioally, Ryerso Futures maages corporate iovatio programs for several leadig North America corporates. We are the oly idepedet techology accelerator i Idia to receive support ad accreditatio from the Departmet of Sciece ad Techology, Govermet of Idia uder its Natioal Sciece & Te c h o l o g y E t r e p r e e u r s h i p Developmet Board (NSTEDB), Program, which usually supports oly icubators withi academic istitutios. Also, we are a oe-of-a-kid joit veture, where a techology busiess accelerator is co-located withi a stock exchage. We work with techology startups i the eterprise ad cosumer space - software ad hardware. We have bee operatig i Idia for the past 2 years. Our accelerator i Mumbai hosts 69 startups across diverse sectors. Eightee of which have raised fudig i the past 12 moths. We provide our startups a world-class ifrastructure ad peer etwork, access to metors, idustry coect, ivestor coect ad techology support ad marketig / busiess developmet support. Ryerso Futures Ic. is the techology acceleratio ad ivestmet arm of Ryerso Uiversity, Toroto. Ryerso Futures ows majority 85% equity ad the program maages the accelerator. Our flagship icubator i Caada, is the DMZ (formerly kow as Digital Media Zoe), which is raked #1 startup icubator i North America, ad #3 globally. The program is o the lies of our programs i Caada, with some elemet of localizatio. The focus is largely o validatio, idustry access ad ivestor coect. Accordig to a report joitly released by idustry body NASSCOM ad cosultig firm Ziov, there are 110 icubators / accelerators i Idia. How differet is your accelerator programme from the other icubators or accelerators i Idia? Icubators ad accelerators are beig used as geeric termiology but, oe eeds to be careful with usig ames iterchageably. Typically, icubators are a part of a academic set-up that work with startups at a idea / cocept level 6 ON TRADE Jauary - March 2016

7 ad help through validatig the idea, coductig a feasibility test ad developig a prototype. O the other had, a accelerator as the ame suggests, helps i acceleratig the busiess. For gettig ito a accelerator, you ecessarily eed to have a product or busiess case established. Also, startup accelerator i itself caot be a geeric termiology. The reaso I say this is because, there have bee differet models floated all aroud ad every model has its ow madate ad objectives. For example a startup accelerator set up withi a uiversity is very differet from a corporate accelerator, which is very differet from a private accelerator ad stadaloe startup accelerator. Each oe has its ow pros ad cos ad each oe is relevat at a differet stage of a startup s growth life cycle. A startup fouder eeds to cosider the particular, persoal ad busiess cotext ad eeds at that poit i time ad the accordigly determie which accelerator would best serve its eeds. This helps both, the startup ad the accelerator. Wrog choice of a accelerator ca lead to a disgrutled etrepreeur sice the expectatios o both sides would be differet. A startup eeds to vet a accelerator, based o its eeds, rather tha compare 2 accelerators. It just does ot work. Our model is largely based o helpig startups with rapid iteratio, gettig its first set of customers ad doig a workig due diligece from a ivestmet perspective. We eable a lot of idustry ad ivestor coects. A startup fouder eeds to cosider the particular, persoal ad busiess cotext ad eeds at that poit i time ad the accordigly determie which accelerator would best serve its eeds. We have strog selectio criteria, post which we offer our startups the followig: World class ifrastructure Techology credits worth $100,000 from IBM, Microsoft, Amazo ad Google Busiess developmet ad market developmet had-holdig Expert idustry metors Extesive idustry coect Ivestor coects Public relatios ad marketig support A solid peer etwork Access to commuity evets Access to talet What are the challeges faced by startup compaies i Idia ad how ca they be addressed? Challeges faced by startups are multifold ad a few of the more commo oes are product validatio, access to customers, resource availability ad legitimacy. Accelerators ad icubators help startups i avigatig ad overcomig these challeges. The sigle biggest reaso for a lot of startups i closig dow, is lack of validatio. Icubators ca help validatio from a research ad prototypig agle but, accelerators ca actually help with customer validatio, by eablig pilot opportuities. The sigle biggest advatage a accelerator brigs to startups is - Relatioships. A robust accelerator program provides a startup with relatioships relevat to its busiess ad situatioal eeds. Most etrepreeurs do ot always have the etwork of cotacts eeded to succeed. There could be the eed for a advisor, metor, first set of customers, hirig iters a accelerator doig its job well, would be hady with all its cotacts ad more importatly forgig a relatioship for its startups. Sice the resources with a startup are limited, the secod biggest value add that a accelerator ca brig, is to help startups bootstrap for loger. It is ot just about a facy co-workig space, at o ret or limited ret. Accelerators are a commuity of startups, where startups access a quality peer etwork of likemided etrepreeurs, access to shared overheads, exposure ad access to professioal services at a fractio of a cost, all of which allow the fouders to stretch their capital further tha goig the distace by themselves. A quality peer etwork is a very strog plus poit i itself. Most importatly, a accelerator leds legitimacy to a startup. It is a place where there is a workig due diligece beyod just a PowerPoit presetatio or fiacial forecasts. Accelerators create a lot of comfort for corporates while dealig with startups for a proof-ofcocept ad likewise ivestors also see a value i buildig relatioships with accelerators for a qualified deal flow. Accelerators led visibility to startups. It is a part of their job to profile startups that are a part of the accelerator program, by regularly ivitig corporates, ivestors ad other stakeholders, to meet with its startup fouders. ON TRADE Jauary - March

8 Most importatly, a accelerator leds legitimacy to a startup. It is a place where there is a workig due diligece beyod just a PowerPoit presetatio or fiacial forecasts. Oe of the goals of your accelerator p ro g r a m m e i s t o h e l p I d i a compaies access the North America market. Could you share with us your success stories i this edeavour ad your future pla of actio i this area? That s ot true. Our program is completely focussed o workig with Idia startups i the Idia market. Havig said that, for the past 3 years, i partership with the Govermet of Otario, Caada, we have bee hostig the Next BIG Idea Cotest i Idia, wherei, through a applicatio based model, aually top-5 hi-tech ad hipotetial startups from Idia are take to Toroto for a 2-week market icubatio program. Idustry sposors i the past have icluded IBM ad Amazo Web Services. However, this is more of a pa- Idia competitio ad our portfolio startups are ot allowed to take part i this competitio. The Next BIG Idea Cotest wiers get a 2-week all-expeses paid, bespoke program i Toroto, where they are itroduced to potetial customers, parters, ivestors which will eable them to access the North America market. We have see 558 applicatios over the past 3 years. We have take the competitio o a road show across 9 cities, i partership with our regioal icubator / accelerator parters i Pue, Ahmedabad, Goa, Bagalore, Cheai, Kochi, Hyderabad ad NCR. We have successfully soft-laded 13 Idia startups i Toroto through the Next BIG Idea Cotest. We have see some great success through the Cotest, which has see our wiers go oto raise some serious veture fudig. Oe of our first wiers i 2013 was CitrusPay, which has sice raised a Series-C fudig of $32 millio. We have had some other success stories i Vidooly (fuded by Bessemer Veture Parters), ShieldSquare (fuded by IAN, SeedXStartups), Survelytics (fuded by Blume Vetures), Kootor (acquired by FreshDesk) to ame a few. This will cotiue to be a aual feature of ours, as we feel there exist some great startups i Idia, with a potetial to go global ad we at Ryerso / Zoe Startups Idia ca brig our etwork ito play. What are the fiacig optios available for start-up compaies i Idia? Particularly, commet o the effectiveess of the istitutioal tradig platform of BSE ad NSE. Istitutioal tradig platforms are good for later stage fudig, as it ivolves dealig with public moey. Compaies at a growth stage or lookig for later stage fudig are better suited to those larger istitutioal rouds. Startups are more suited to raise fudig from agels (HNI s or seior idustry executives), agel etworks, seed stage ivestors, veture capital firms ad corporate veture arms. Crowd-fudig is aother emergig tred. Also, startups eed to be very aware of raisig oly the a m o u t o f c a p i t a l e e d e d t o operatioalize the busiess, rather tha tryig to raise a large sum because, it will give them a profile. Icreasigly, startups are also lookig at raisig smart capital or strategic capital, where moey is accompaied by domai expertise, idustry kow-how or a etwork of potetial customers. Zoe Startups Idia aims to develop Mumbai ad Idia as a global hub for i o v a t i o a d e c o o m i c developmet. Could you shed light o your future strategies to achieve this visio? Accelerators are a commuity of startups ad etrepreeurs, where there is a lot of iformal learig ad sharig of experieces withi the peer etwork. Fouders that are a part of a accelerator, have to be willig to talk about their experieces, cotacts ad kid of give back to the commuity. Overall, accelerators are et job creators that ca trasform the job market ad ecoomic prosperity of commuities, cities ad atios. Goig forward, we pla to lauch specific programs targetig idustry verticals, studet etrepreeurs ad wome etrepreeurs. Likewise, we have also aouced a iteratioal soft-ladig program, which will be a iovatio ad etrepreeurship hub for iteratioal techology startups ad compaies lookig to eter the Idia market. We will be providig them with ed-to-ed services that eable them to succeed i the Idia market. With this we look forward to create more kowledge ecoomy jobs, ad attract more foreig direct ivestmet ito Mumbai ad Idia. 8 ON TRADE Jauary - March 2016

9 Taiwa for the Most Discerig Traveller Arthur Hsieh Director, TTB Sigapore Brach, Taiwa Visitors Associatio, Sigapore Office largest lake. It s beautiful, romatic ad is a ideal destiatio for a relaxed holiday or a hoeymoo. The easter part of the lake is roud like the su ad the wester side is shaped like a crescet moo, hece the ame Su Moo Lake. The waters of the lake are crystal clear with various shades of gree ad turquoise blue which perfectly reflect the surroudig hills ad moutais. The juxtapositio of moutai ad water combied with the lake s 760-meter elevatio gives the impressio of a Chiese ladscape paitig. aiwa is catchig the Idia Ttravellers attetio ad there is a growig iterest i this beautiful islad thaks to its superb locatio (a mere 6 hour direct flight from New D e l h i ). I t o f f e r s t h e p e r f e c t amalgamatio of fabulous food, superb ight life ad ight markets, hot sprigs, culture, history ad stuig atural beauty. Also, Taiwa is oe of the uexplored ad still-to-be-discovered destiatios of South East Asia which makes it a uique offerig for the adveturous Idia traveler waitig for ew experieces i travel. The capital Taipei is a moder ad hospitable city that preserves its traditioal Chiese culture agaist the b a c k g r o u d o f c u t t i g - e d g e ifrastructure. I Taipei, visitors fid it easy to get aroud, bask i the pleasat climate, ad savor all kids of Chiese ad iteratioal cuisie icludig authetic Idia food. Taipei is choc-abloc with cafes, restaurats, historical museums such as the Natioal Palace Museum, stuig skyscrapers, especially the Taipei 101, posh mega malls ad widig cyclig paths Taipei has somethig for everyoe. Whether you choose to gaze at the city from the top of oe of the world s tallest skyscrapers or explore it by waderig aroud its buzzig ight markets Taipei will leave you askig for more. Rated as oe of the top attractios i Taiwa, the Su Moo Lake, situated i Natou Couty s Yuchi Towship ear the ceter of Taiwa, is the islad s Taiwa s Taroko Natioal Park is a atioal treasure ad a must-visit for ay visitor to Taiwa. The area also kow for the world s deepest ad most beautiful marble cayo ad slot cayos where may arrow sectios rise to almost a thousad feet high ad are oly a few hudred feet apart. ON TRADE Jauary - March

10 E-commerce Startups ad MSMEs i Idia: A Symbiotic Relatioship Sajay Aggarwal, Parter - KPMG Eterprise, Head of Family Busiess he oe cosiders the Wgrowig cosumer demad ad chagig cosumer profiles i Idia, Idia stads out as a distict market from the rest. Some of the key poits to recko with this market iclude: Idia is a huge ad complex market, comprisig over 1.27 billio cosumers, which is more tha the populatio of Europe ad a few other coutries put together. The chagig cosumer lifestyle, prefereces ad tastes, price value perceptio across segmets ad locatios, add to the diversity i terms of its demad. While the first 5 0 c i t i e s a d t o w s h a v e comparatively higher per capita icome, several tows aspire to purchase quality products, give the growig icome levels. The diversity i culture ad traditios further add to the heterogeeity of the market. Improvemet i rural ifrastructure, better coectivity, icrease i icome, access to quality educatio a d g r o w i g d e v e l o p m e t opportuities, are some factors which further stregthe the cosumer base. Idia has a huge base of youg populatio whose prefereces are differet from that of the older geeratio. Growig govermet ivestmets i ifrastructure both digital ad physical, defece, techology, itroductio of programmes like fiacial iclusio developmet, etc are ot oly chagig the cosumer dyamism, but also eablig large scale maufacturig of cosumer goods. With better ifrastructure ad growth opportuities, smart cities ca be looked at as a ew market, supported by cosumers with higher icome levels. Geerally, the orgaised supply side is aroud 20 to 30 percet of the total s e g m e t d e m a d, t h e l a r g e uorgaised supply side is expected to soo trasit to the orgaised segmet. The table below is illustrative of growig cosumerism. Other sectors such as gems ad jewellery, apparel, cosumer electroics, etc. are eve larger ad have a sigificat potetial for growth i demad. Differeces i orgaised ad uorgaised supply i domestic food market Category Uits Curret Future Year Size Org. 1 Uorg. 2 Year Size Org. Uorg. Wheat (Flour) INR crore ,920 10% 90% ,686 21% 79% Rice (Basmati) INR core ,521 40% 60% ,138 NA 3 Spices INR crore ,958 17% 83% ,254 Sacks 4 INR crore ,497 43% 57% ,674 NA NA Pickles INR crore ,034 51% 49% ,717 NA NA Dairy M.To % 81% % 75% Egg INR crore ,315 1% 99% ,231 2% 98% Poultry INR crore ,290 1% 99% ,917 1% 99% Based o KPMG Estimates 1 Org. Orgaized 2 Uorg. Uorgaized 3 NA Not available 4 Sacks Icludes sweets ad savoury 20% NA 80% 10 ON TRADE Jauary - March 2016

11 The complex supply chai desig acts as a critical driver to ulock demad ad d e l i v e r t h e p o t e t i a l f o r S M E maufacturers ad suppliers of goods ad services. The last mile distributio costs ad the overall supply chai costs, coupled with iefficiecies leads to a ed-cosumer pricig which does ot help address the existig ad potetial demad for goods ad services. The fial price is too high from a customer poit of view, who does ot perceive it as value for moey. Hece, the volume does ot grow rapidly. Disitermediatio is possible but ot very easy due to the risks associated with workig capital as well as credit issues ivolved i supply chai CAGR 52% P 2016P 2017P 2018P 2019P 2020P Simple examples of white goods such as colour TV, camera, mobile phoe, telecom, WiFi, DTH, etc. have product prices reduced by a sigificat amout, demad potetial ulocked by over 10 to 100 times ad may be eve more, over the last few years. I a typical sceario, potetial customers have access to e-commerce websites as well as quality products ad services. This olie access, as compared to brick ad mortar distributio, provides a distict opportuity for SME ad e- commerce compaies. It ot oly is a time cosumig activity to build a pa Idia brick ad mortar distributio chael for every product ad service, but also requires a large amout of ivestmet ad maagemet badwidth. Further, sustaiig the supply chai with costat staff turover, risig costs ad a pressure o the margis also becomes a sigificat challege. E-commerce compaies are workig to acquire customers, vedors ad build a supply chai desig which ca improve their reach, customer experiece ad reduce the itermediate costs by beefittig from ecoomies of scale ad the use of techology. Idia s e-commerce retail market size (USD billio) Source: KPMG Report Fulfilled: Idia s e-commerce Retail Logistics Growth Story December 2015 E-commerce shall beefit from beig a strog chael aggregatig various products ad icreasig volumes for the SME brads ad maufacturers. It is expected to give a choice to the customer across various price value poits ad help build a efficiet logistics ad delivery model for a wide rage of products compared to smaller product compaies who are tryig to build their ow brick ad mortar supply chais. If e-commerce compaies are able to build this supply chai desig, it shall ease the delivery flow to ed customer. However, questios such as will the ecommerce players be able to survive, raise fuds, bear the losses i the buildig phase ad develop the supply chai desig i the shortest possible time ad sustai it over a log-term? remai to be aswered. Global examples have show that it takes 20 years of sustaied efforts ad by icurrig losses to develop this, it is possible that it may ow take less time ad low costs, if maaged ad executed smartly. For small ad medium sized busiesses i the Busiess-to-Busiess (B2Bs) ad Busiess-to-Cosumer (B2C) segmets, for local ad regioal players, or those preset i a few states, this serves to be a importat chael to develop a wider distributio etwork for their products ot oly across markets where they do ot have a reach curretly but also with customers with whom they do ot have ay visibility. Higher volumes ca be achieved by parterig with the right olie chaels ad digital marketig players, makig them atioal brads. E-commerce ad SMEs therefore have a lot to gai through strog collaboratio, to service ed customers well ad reduce the ultimate cost for their customers. They ca further help to create a rage of products ad ehace the overall customer experiece. This by itself shall be a game chager to icrease volumes for e-commerce compaies ad SMEs, multiple times i the short to mediumterm. (The views ad opiios expressed herei are those of the author ad do ot ecessarily represet the views of KPMG Idia.) ON TRADE Jauary - March

12 Chagig Paradigms i Small Busiess Fiacig Alok Mittal Cofouder ad Chief Executive Officer, Idifi Techologies Pvt. Ltd. mall busiesses have bee Srecogized as egies of growth across may coutries. I a eviromet where public ivestmets ca o loger power growth ad job creatio ad where larger corporates fid themselves i the middle of periodic global volatility, small busiesses remai stable gears of most ecoomies. For developig ecoomies, they also cotiue to be the oly egies of job creatio. Idia, for example, eeds to create over 100 millio ew jobs over the ext decade, due to et additios i workig age populatio ad farm jobs migratio this magitude of challege is oly addressable through a vibrat ad growig small busiess sector. O the other had, fiacig busiesses, both equity ad debt, have ot bee covetioally desiged to serve small busiesses. From the overhead ad costraits of brach based bakig, to lack of chaels for distributig fiacig products, baks ad obakig leders i most coutries have bee able to effectively address oly large compaies. Most of all, the lack of data regardig small busiesses ad the heterogeeity of small busiesses makes it impossible to devise scalable fiacig products. Needless to metio, whe available, these products ofte default to loas agaist collateral, which idex to the hard assets of the busiess ad ot to their growth capital requiremets. A rage of iovatios arisig out of techology ad data disruptios promise to solve these issue ad fially start to create scalable fiacig platforms. Idifi Techologies Pvt. Ltd. (Idifi for short), is attemptig to create such a solutio for the Idia market. Idifi provides a platform for small busiess borrowers to coect with istitutioal leders. Some saliet solutio poits are described below. The Busiess is Fi ad ot Tech Idifi has bee built o the premise that while techology is a ecessary eabler, such platforms must solve for uderlyig fiacial parameters. For example, oe of the key problems to solve is how to retai high credit quality at scale? Traditioally, i a brach based setup, scale has bee compromised i favor of leveragig social likages ad relatioships towards credit quality. At Idifi, ew solutios are beig arrived to address this problem by makig uderwritig more data-orieted ad stadardized. However, as poited earlier, data regardig small busiesses is hard to come by. Hece the compay is tryig to tap ito data that is available i busiess supply chais ad use that to draw sigals about the stregth of a uderlyig busiess. For example, by lookig at uderlyig purchase trasactios of a small busiess ad the volatility thereof, Idifi has bee able to draw reasoable coclusios about size ad stregth of the busiess. This busiess trasactio data ca be made available at scale because may such supply chais have atural cosolidators i them. Curretly, the compay has developed products across half a doze differet segmets, all built through data parterships that provide a proprietary view of busiess trasactios ad hece eable scalable uderwritig models for leders. Segmet kowledge matters Small busiesses are otorious for their h e t e r o g e e i t y. F r o m d i f f e r e t orgaizatios, such as proprietorships to parterships ad corporatios ad uaces of each differet idustry segmet, this heterogeeity limits the scalability of small busiess ledig. Idifi is providig a solutio to this p r o b l e m b y t a k i g a p r o d u c t developmet approach to fiacig. Idifi costructs custom solutios for each idustry ad segmet this ivolves detailed aalysis of the idustry, its cash flows, the eed for capital, the uderlyig credit risks ad data required to create robust uderwritig models. Oce this exercise has bee doe ad data parterships eabled, this product is ow available i a scalable fashio to multiple leders. This approach esures adequate ivestmets i desig of the product ad amortizes that ivestmet across a large umber of leders ad borrowers. The result is a depth of uderstadig ad solutio that delivers to both scale ad credit quality parameters. Operatig costs are the borig secret Oe of the key reasos for small busiess ledig costraits is the cost of doig busiess. From direct origiatio, which is the orm for most small busiess leders, to feet-o-street uderwritig i the absece of secodary data, high operatig costs which plague small busiess fiacig market. The result is reduced access to fuds for small busiesses ad a large utapped market for leders. Idifi is lookig to reduce the operatig cost of ledig to small busiesses by over 50% by iovatig o the ledig processes, as well as judicious use of techology. The key busiess model iovatios iclude parterships for origiatio as well as for uderwritig data, as well as the multi-leder model, which icreases the fill rate o the platform thereby reducig marketig wastage. At the same time, automatio of data aalysis ad ledig workflows lead to substatial savigs i operatig costs. Ultimately, these savigs i process costs will beefit both leders as well as borrowers, ad expad access to fiacig for small busiesses. 12 ON TRADE Jauary - March 2016

13 Experiece the ew CENTRUM at World Trade Cetre Mumbai A ideal veue for Cofereces & Baquets Cotact: World Trade Cetre Mumbai T: E: ceterpoit@wtcmumbai.org

14 Idia Startups Get New Lease of Life Kayar Raghava, Member, The Cheai Agels dia startups have ever had it as Igood as the daw of 2016 suggests. To uderstad this, oe has to draw attetio to the macro eviromet, what chages are beig ushered therei ad how these are likely to impact the Idia startup ecosystem i a positive way i the years to come. Idia has for log bee a coutry of great potetial ad promise. Its populatio, democracy, demographic divideds, etrepreeurial ad ca-do spirit have all bee ofte spoke of i a positive ad allurig way. Yet, its record so far has bee at best idifferet ad at worst dowright disappoitig. Not aymore. The curret cetral govermet has put its moey where its mouth is. Iitially, it too looked like the govermets of the past, but to the discerig observers it was immediately clear that there was a pla ad a method i its approach. The first oe year of the govermet was spet i creatig the right atmospherics i both cofidece ad cosesus buildig amog various stakeholders foreig ad iteral state govermets, multiatioals, local corporates, ivestors ad the diasporas. Buddig ad existig youg etrepreeurs were coopted aplety to showcase positive eergy ad ethusiasm of a aspiratioal Idia. The govermet realised soo eough that the Idia o-tech corporates were eck deep i leverage, that they were ot capable of makig ivestmets ad hece their capacity to create jobs was ext to othig. The govermet s ow coffers too were empty while the deficits were ruig high. This meat it had to attack o two frots i order to spur ivestmet ad evetual job growth. These are raisig reveues ad attractig foreig direct ivestmet. This is precisely what the govermet resorted to do. The govermet raised eormous amout of fuds last year through public auctio of coal ad spectrum blocks, while at the same time layig out the red carpet with attractive ad imagiative schemes to ivestors ad multiatioals abroad, where Idia was projected as the oasis amog a barre desert of destiatios whose ecoomies were otherwise cotractig. The amouts raised through auctios are ow goig ito a umber of major ifrastructure projects such as roads, ports, power, trasportatio ad smart cities. The govermet s efforts i attractig Foreig Direct Ivestmet (FDI) are bearig fruit with several commitmets secured agaist specific projects, from a umber of coutries, corporates ad veture fuds. Simultaeously, there is a bottleeck o the policy ad regulatory framework, however, the govermet has take several steps to ameliorate the situatio although, much more ca ad will hopefully, be doe i the moths to come. Here, i additio to relaxig rules for startups i creatio, registratio, bakruptcy, exit, etc., the govermet has also removed a major aomaly by providig for capital gais exemptio o fud ivestmets - patiet capital - with startups. So far, oly foreig istitutioal moey, which, iroically, is othig but 14 ON TRADE Jauary - March 2016

15 flight capital, ejoyed this cocessio. The govermets by ad large, ca oly tackle the supply side, i spurrig growth a d e m p l o y m e t. T h e I d i a govermet is rightly focussig o improvemets i ifrastructure. The accet o easig bureaucracy ad o providig tax cocessios, although welcome, has ot goe far eough yet, goig by the stadards of coutries such as Sigapore, Hog Kog, UK, etc. I a m a s s i v e s h i f t t o w a r d s d i r e c t itervetio, the govermet has created a eormous, 100 billio rupee, fud of fuds which will be ivested i chose early stage veture fuds, providig the eeded mometum o the fudig side for startups. The relief ad comfort that this fud ca provide, at a time whe the market setimet across the world has tured a bit more egative towards early s t a g e r i s k - t a k i g, c a o t b e overemphasised. Notwithstadig all of the above, there are two totally ucoected areas cryig for qualitative improvemets o a moumetal scale should busiesses, icludig startups, have to fully succeed. These are the coutry s legal regime ad logistics. The Idia legal system, at lower levels i particular, is icosistet, ureliable, complex ad extremely timecosumig. This drives busiesses to a more legally-welcomig Sigapore or Hog Kog for registratio as corporate etities. As to logistics, the still prevalet cash system, poor addresses ad ureliable couriers make ay commerce so expesive that startups fid the over 15% cost that it forms i a trasactio simply uaffordable. So, the govermet is o a right course. What of the demad side, the startup ecosystem itself? Has it measured up i terms of ideas, iovatio, executio, icubatio, agel ad veture capital fudig, etc? For a coutry of the size of Idia, the iovatio is o match to what there is i places like Scadiavia or Israel or UK (bio-medical), much less the Uited States. Idia surely is a coutry of etrepreeurs but a lot of busiesses are service or people orieted rather tha product-led or i maufacturig. Idia is still ot a coutry of origial busiess ideas, imagiative desig ad iovative products. That cotiues i the startup world too with may i the me-too c a t e g o r y o f c o s u m e r i t e r e t e c o m p a s s i g e - c o m m e r c e, marketplace, paymet systems ad the like. This cofies them to beig Idiaiteral. This may still be fie as log as i the services domai, the startups geuiely disrupt ad provide value additio i terms of curatio, ehaced trust, reliability ad itegrity to trasactios by autheticatig ad certifyig them for quality across the board. Thakfully, a umber of startups i the last two or three years have started doig precisely that. As to seed fudig, there are a umber of marquee agel groups curretly active i Idia i several cities. These groups do a yeoma service to startups i terms of early fudig where the risk is highest. The problem the agels, alog with etrepreeurs, have though is fidig follow-o fuds i series A ad bridge rouds to keep the startups afloat at cruch time ad further towards growth phase. This problem cotiues ad is i fact ow worse, due to what may be termed valuatio axieties. This is because, the late stage veture capital ad pesio fuds, with massive corpus at their disposal, have drive up valuatios at later stages of fudig but this situatio is ufortuately coflated with early stage capital where valuatios are still reasoable. The result of all this is that the agels ad small fuds have to take o additioal risk without much scope to recycle their fuds, much less get exit. What is essetial here is to create more local rupee fuds ad make them available for seed to early growth stage ad make the promisig startups impervious to cyclical ad systemic shocks. I the evet, the govermet s creatio of a fud of fuds is a bold step i this directio. To sum up, the govermet has give the right sigals ad is set o a right executio path as a supply-side eabler. It has goe further to provide fudig help to startups ad is fully oitervetioist i its dispositio. The busiesses, startups i particular, could ot have asked for more, at least for ow. Yes, there will be froth but the core of the startup ecosystem is itact ad poised for excellet growth. Idia is the destiatio ow, at least i the Asia cotiet, for ivestmet. ON TRADE Jauary - March

16 A Islad of Opportuity i Caada A firm believer i doig what s best for Price Edward Islad (PEI), Hoourable Heath MacDoald, Miister of Ecoomic Developmet ad Tourism, Provicial Govermet of Price Edward Islad is focused o promotig stregths ad opportuities of his Provice. To achieve this, Miister MacDoald ad his team are geared up to welcome all aspirig compaies to set base i his Provice. I a iterview, he outlies his modus operadi i effectig trade, ecouragig SMEs ad eablig growth o PEI. The Iteratioal Moetary Fud expects the Caadia ecoomy to grow 1.7% i 2016 compared to a estimated 1.2% growth i the previous year. How is the ecoomy i Price Edward Islad growig? What are the stregths ad opportuities i the Islad for foreig ivestors? post-secodary istitutios are costatly coected to busiess ad ca work quickly to create educatio ad traiig programs that will produce skilled ad employmet ready workers. Busiesses beefit from high labour participatio ad sigle digit turover rates. Price Edward Islad (PEI) has historically depeded o lad ad sea as the basis for its primary idustries - agriculture, fisheries ad t o u r i s m. T o d a y, t h e Govermet of Price Edward Islad is buildig o these log-established sectors as well as capturig t h e p o t e t i a l o f e w idustries. The ecoomy is buildig o our stregths i these traditioal sectors ad diversifyig ito growth idustries such as aerospace, advaced maufacturig, biosciece, iformatio techology, fiacial service ad reewable eergy. The Royal Bak of Caada is forecastig real GDP to expad by 1.7% i 2015 ad 1.6% i Exports from the Islad cotiue to be strog, toppig $1.2 billio i 2014 ad at the ed of November 2015 exports were up a additioal 15%. For foreig ivestors will fid five compellig reasos to ivest i Price Edward Islad: The ecoomy is buildig o our stregths i these traditioal sectors ad diversifyig ito growth idustries such as aerospace, advaced maufacturig, biosciece, iformatio techology, fiacial service ad reewable eergy. Strategic ifrastructure Iovative thikig ad techologically advaced ifrastructure itertwie to promote the growth of emergig ad maturig sectors i Price Edward Islad. From BioCommos Research Parks, to a highly d e v e l o p e d A e r o s p a c e Cetre, Techology Creative Complexes ad more. PEI competes o a global scale ad is ready to welcome ivestors ready for the challege. Access to major markets - PEI is located i the Gulf of St. Lawrece, off the Atlatic Coast of the easter Caadia mailad. This prime locatio offers excellet access to North America ad Europea markets through the use of year-roud ports, major air cargo routes ad high-bulk lad trasportatio. PEI is i the Atlatic Time Zoe; four hours behid Lodo, four hours ahead of Los Ageles ad oe hour ahead of the Easter Uited States. A cost effective ad busiess friedly eviromet - PEI is oe of the lowest cost locatios for busiess i the G7 accordig to the KPMG Study o busiess costs. Ay busiess will fid a welcomig ad friedly eviromet, highly qualified persoel, commuicatio ad busiess ifrastructure. A highly skilled ad educated labour pool High quality Quality of life that is secod to oe - I PEI, people live i a eviromet that offers big opportuities, affordable housig, light traffic, peaceful commuities, great schools, uiversal public health care, friedly eighbours ad just a few-miute drive betwee home ad work. PEI is the smallest of the Caadia provices but it represets the best of all that Caada ca be - it could be home to may! 16 ON TRADE Jauary - March 2016

17 Price Edward Islad has the secod largest per-capita umber of small ad medium-sized eterprises of ay provice ad territory i Caada. Could you briefly explai the sectors i which these busiesses operate ad how ca foreig compaies explore collaboratio with these eterprises? Price Edward Islad s key sectors iclude agriculture, fisheries, tourism, aerospace, advaced maufacturig, biosciece, iformatio techology, fiacial service ad reewable eergy. While these compaies are small ad medium sized eterprises, they are iovative ad focus their efforts to be successful withi well-defied parameters operatioally, fiacially ad itegrated ito global markets that make sese. SMEs ted to be flexible, rapid decisio makers, who have built their success o collaboratio ad parterships. Most wat to take their busiesses to a higher level ad seek ivestors who thik ad act like they do. Compaies i PEI have a history of workig with parters from may coutries. There are opportuities to discuss busiess eeds with top-level officials, i order to work out details that will favour both parties. PEI s door to ivestmet is always ope. What is the role of the agecy Iovatio PEI i supportig ecoomic developmet i Price Edward Islad? How ca foreig ivestors make use of this body? Iovatio PEI is focused o acceleratig ecoomic developmet i Price Edward Islad by ivestig i people, iovatio ad ifrastructure. Key sectors have bee idetified that have displayed a high potetial for ecoomic growth withi the Provice. These sectors iclude advaced maufacturig ad processig (icludig value-added food developmet ad productio), aerospace ad defece, biosciece (icludig agriculture ad fisheries), iformatio ad commuicatio techology, fiacial services ad reewable eergy. Rapid developmet of these sectors ad others is the focus to drive the Islad ecoomy through iovative ew products ad services. The goal is to build a stroger Price Edward Islad by helpig busiesses create sustaiable employmet opportuities. Iovatio PEI works with all three levels of govermet (federal, provicial ad muicipal) workig together to attract foreig ivestmet to the Provice. Operatig as a seamless partership, the team promotig the Islad will provide oe-stop-shop service for your busiess eeds. All efforts go ito esurig that PEI is a ideal locatio for busiess to succeed. PEI provides quality iformatio ad access to decisio makers. Whether oe wats to expad oes busiess, start a busiess, or ivest i a existig busiess - the Islad has the expertise to help busiess succeed. Aerospace, biosciece, iformatio techology, reewable eergy, fiacial ad busiess services are some of the emergig sectors i Price Edward Islad. What are the Whether oe wats to expad oes busiess, start a busiess, or ivest i a existig busiess - the Islad has the expertise to help busiess succeed. icetives give by your govermet ad the Govermet of Caada to attract foreig ivestmet i these sectors? With a team approach, coectig all levels of govermet to busiess opportuities, the team will build a tailored-assistace package quickly ad professioally. Fiacial icetives are available to eligible compaies ad may iclude tax rebates, labour rebates ad/or iterest-free usecured loas. PEI ca assist i the areas of busiess start-up, capital acquisitio, huma resource plaig, IT ifrastructure eeds, export traiig ad assistace ad more. The team will idetify the appropriate icetives to best support a compay s success, based o its busiess pla. A list of Iovatio PEI programs ca be foud at this lik: Services Agriculture ad food processig are the leadig sectors i Price Edward Islad. How ca Idia ad the Islad work together i these sectors? The emergece of these sectors coupled with developig expertise i agriculture ad food processig i Idia, alig extremely well with the successes ad iovatio foud i Price Edward Islad. Product advacemets, icreasig opportuities to move commodities up the value-chai, ad creativity i food developmet are hallmarks of what is drivig the agriculture sector i PEI. I Idia, risig icome levels has icreased the desire for better products, icludig recogized braded foods, may of which are ready-to-eat. These traits are very similar to the situatio ufoldig i Caada. Whe this is combied with the icreasig demad for orgaic products, or products that promote a healthy lifestyle ad welless, oe agai sees similarities where Price Edward Islad ad Idia are ot so far apart. The distace betwee Idia ad PEI positios the latter to be coectors ad gateways ito very large markets North America ad Asia. Idividual experieces i these markets ca be shared to create parterships that ca help compaies reach out to customers i each other s coutries which would otherwise have bee a struggle. Cultural differeces ca be leveraged to explore ew ad dyamic products that are o demad by global customers. Both coutries have bee built o etrepreeurial spirits, the costat search for ew horizos ad the desire to better oeself for future geeratios. The world today demads global cooperatio. Caada ad Idia share a strog relatioship, particularly i may large Caadia cities. There is more to Caada tha these cities, ad Price Edward Islad is the best of Caada. ON TRADE Jauary - March

18 WTC Miami - Facilitator of Iteratioal Commerce Ms. Charlotte Gallogly, Board Director, World Trade Ceters Associatio, New York ad Presidet, World Trade Ceter Miami (WTCM) durig her visit to World Trade Cetre Mumbai shared her Ceter s missio to promote trade ad commerce i Miami. Ms. Gallogly ad her team have bee able to facilitate the local busiess of Miami through trade shows ad i this way cotributed to the City s ecoomic developmet. I a exclusive iterview, she cadidly expressed the trade ad ivestmet opportuities available to Idia etrepreeurs i Miami. Oe of the missios of World Trade Ceter Miami (WTCM) is to promote the role of wome i iteratioal trade. What are the steps take by your orgaizatio to achieve this ad what are the outcomes? We are committed to advacig the role of wome i iteratioal trade, helpig them establish successful busiesses ad advace to leadership positios i their orgaizatios ad the South Florida commuity. I 2004, we lauched the WTCM s first Iteratioal Wome s Day by recogizig wome who have advaced the promotio of free trade ad iteratioal busiess i the Americas. We have cotiued the Wome s Day evet for the last 13 years ad to date we have recogized 71 wome. Oe of our award-wiers is Ms. Romaie M. Segui, Presidet, UPS Americas Regio, who will become the secod woma to chair WTCM i Miami is a youg city ad its ecoomic developmet started oly after 1950s. What is the role played by the World Trade Ceter Miami i promotig ecoomic developmet of the City? We pla to create a Asia Desk/Iformatio Ceter to provide support to Idia busiesses seekig to distribute their products i the wester hemisphere, the world s secodlargest market. the regio's ecoomy, geeratig more tha $3.8 billio i iteratioal sales ad stimulatig the formatio of thousads of ew jobs. Today, our three major trade shows ad iteratioal cofereces brig together thousads of buyers ad sellers each year, creatig ew busiess relatioships that expad their sales opportuities ragig from Asia ad Europe to the Uited States ad Lati America. We hold other trade promotio evets that aually draw more tha 2,000 iteratioal compaies iterested i icreasig two-way trade ad makig coectios with buyers ad sellers i the Americas marketplace. We also provide up-to-date market iformatio, idetify potetial customers, ad foster iteratioal coectios though global members of the World Trade Ceters Associatio. We have leared that your orgaizatio is i the process of settig up a Asia Iformatio Ceter. Ca you provide more iformatio o this project ad how it would promote America ivestmet i Asia coutries, especially i Idia? Sice its foudig i 1985, WTCM has bee very successful i facilitatig iteratioal commerce i Miami-Dade Couty. T h r o u g h t r a d e s h o w s, missios, special evets, educatioal programs ad other forms of assistace, WTCM has played a major role i spurrig the growth of With the completio of the Paama Caal expasio, we believe that more compaies from Idia will be eterig the North ad South America markets, usig Miami as a strategic poit of etry. We pla to create a Asia Desk/Iformatio Ceter to provide support to Idia busiesses seekig to distribute their products i the wester hemisphere, the world s secod-largest market. 18 ON TRADE Jauary - March 2016

19 I additio, we pla to build o the success of our recet trip to the Air Cargo Idia 2016 trade show to facilitate outboud missios from South Florida to Idia, opeig the door to icreased sales ad ivestmet opportuities i dyamic Idia markets, such as Mumbai. Miami is the Trade ad L o g i s t i c s H u b o f t h e Americas as it provides excellet trade, logistics, ifrastructure ad allied services to compaies that use this City as a base of operatios or as a trasshipmet poit. How ca Idia compaies make use of this uique advatage of Miami ad expad their presece i Lati America, Caada ad USA? Both Miami Iteratioal Airport (MIA) ad PortMiami have recetly completed major ifrastructure projects to support global trade flows. MIA is the logtime leader i air cargo ad passeger traffic to Lati America, with coveiet service to Europe, Asia, Africa ad other global destiatios. Today, MIA is the umber oe iteratioal freight airport i the US ad ith largest i the world. With the completio of its deep dredge project, PortMiami is the closest U.S.A. port to the expaded Paama Caal able to hadle the high-capacity post-paamax vessels. That puts Miami i a uique positio to support Idia compaies seekig to serve U.S.A., Caada, Mexico, the Caribbea ad the dyamic markets of Cetral ad South America. How ca WTC Mumbai ad WTC Miami collaborate to p r o m o t e t r a d e a d ivestmet i both the regios? We would like the WTC Mumbai to collaborate with our team as a sales aget for our shows, brigig more Idia compaies here to fid ew customers i the wester hemisphere as well as agets ad distributors to sell their products. Excellet sales opportuities are offered by our three iteratioal trade shows ad cofereces: Americas Food ad Beverage Show - Our 2015 Show icluded 472 compaies from 33 coutries, drawig 11,123 attedees from 103 coutries. Overall, exhibitors reported $179.2 millio i actual ad projected sales. Air Cargo/SeaCargo Americas Iteratioal Cogress & Exhibitio - These 2015 shows, co-hosted by Miami Iteratioal Airport ad PortMiami, attracted 151 compaies who achieved $60 millio i actual ad projected sales. There are 334 WTCs across the world. How ca all the WTCs form a mutually beeficial etwork to promote world trade ad at the same time serve the busiess iterests of their local regios? With the completio of its deep dredge project, PortMiami is the closest U.S.A. port to the expaded Paama Caal able to hadle the high-capacity post-paamax vessels. That puts Miami i a uique positio to support Idia compaies seekig to serve U.S.A., Caada, Mexico, the Caribbea ad dyamic markets of Cetral ad South America. Havig served for 14 years as a member of the board of directors for the World Trade Ceters Associatio (WTCA), the global orgaizatio that has licesed 334 World Trade Ceters i 92 coutries aroud the world, I believe the key is reciprocity. Each WTC should idetify the export markets that provide the best opportuities for small- to midsize eterprise (SME) i their regio ad parter with WTCs i those export markets to build reciprocal trade relatioships. The WTC Miami looks forward to collaboratig with WTC Mumbai to build parterships that expad sales opportuities, create ew jobs ad support the local ecoomies i our coutries. ON TRADE Jauary - March

20 Chia: Behid the Miracle Dr. Jagaath Pada Research Fellow ad Cetre Head for East Asia, Istitute for Defece Studies ad Aalyses (IDSA), New Delhi hia s ecoomic success has Cbee a pressig academic ad itellectual debate across the world. Idia, Chia s eighbour, however lags behid i examiig Chia s rise ad its ecoomic miracle. The Idia outlook o Chia has bee reactioary ad fragmeted. Ms. Sumita Dawra s Chia: Behid the Miracle is a solicitous treatise that aims to fill this gap. Havig served as head of the Ecoomic Wig of the Idia Missio i Beijig, the author offers a arratio of her iside experiece, which presages the views ad perceptio of a Idia policymaker o Chia s ecoomic growth story. Comprehedig this ad the so-called miracle of the Chiese ecoomy, it is a relevat subject i the Idia cotext that the atio must uderstad ad deliberate upo, sice there are a lot of growth models Idia is imitatig from Chia. Chia s success ad failure must costitute a importat experiece i the Idia grassroots cotext. The author writes cogetly about Chia s compellig ecoomic growth, of a fasciatig developmet model that the world, especially the developig world, should kow more about, ad take closer otice of (page 16). However most importatly, what distiguishes the book from other ewly released literature o Chia s ecoomy is the accout of Chia s provicial growth stories ad their model experieces, which have bee the real backboe of Chia s growth ad ecoomy today. The book argues that ulike its cetralised political culture, Chia follows a decetralised model of goverace (page 42). This exclusive model ot oly offers autoomy to the provices whe it comes to ecoomic decisio-makig but also empowers them to utilise the local resources to their fullest advatage. This model remais the core of Chia s ecoomic success. It has allowed the provices to play the role ad character of local becomig global by attractig foreig ivestors ad puttig them at the lead of may global cities. Noetheless, there are may elemets to this decetralised model that eed deliberatio. The book uder review offers three specific deliberatios to poder over this cotext. First, the ecoomic success of provices amplifies the success of the atioal ecoomy; but there is o sigular model to their success that ca be replicated across the coutry. The capital city Beijig offers a model where the local ecoomy matters most. Beijig has differet zoes of the city that specialise i differet sectors (pages ) a d t h a t s t a y c o r e t o i t s developmetal model. Zhogguacu i Beijig is kow for its IT sector, whereas Beijig s Fiacial Street is kow for both the domestic ad foreig istitutios which i themselves doate to the city s ecoomic developmet ad attract outside ivestmets. Beijig as the seat of Chia s political power ad growth driver (page 43) may well lead to Chia s developmetal model o may couts; but the stories of Shaghai, Guagzhou ad Chegdu are uique, which oe must study ad uderstad o a idepedet accout of their ow patter of growth story. For istace, Shaghai s story is more ifrastructure ivestmet-orieted ad that offers a uique model of ivestmet-drive developmet of Chia that is differet from Beijig. I other words, Chia may have a sigular ecoomic structure where decetralisig provices may remai the core of its rise, but each of these models offer a story of success o its ow that must be uderstood ad deliberated idepedetly. S e c o d, u r b a i s a t i o a d idustrialisatio have bee accorded priority i the Chiese political structure, but that has equally empowered the rural poor to become rich ad urba. The author argues that the ecoomic liberalisatio, started i 1978, ecessitated cheap labour from the rural sector movig to the urba sector (page 186). As a record, almost 260 millio people have migrated from Chia s rural areas to urba cetres ad i the ext oe decade almost 310 millio people are expected to migrate (page 186). By the year 2011, Chia s urba populatio had crossed 50 per cet due to the process of urbaisatio (page 186). Third, the course of privatisatio i Chia exists despite a socialist market ecoomy. The success of the Chiese ecoomy is based o the course of privatisatio. Chia s course of privatisatio, without beig formally iducted ito its systemic practice, has shaped ad boosted its ecoomy i recet decades. Privatisatio coexistig with a socialist political structure is a uiquely C h i e s e i c o g r u i t y. T h e t e r m privatisatio has gathered mometum today i the Chiese political structure ad remais cetral to the coutry s ecoomic developmet ad its trasitio. Provices play a importat role i spurrig privatisatio ahead ad the cetral govermet i Chia implemets it through a modest decetralised process. Sumita Dawra s book may ot be directly poitig to this course, but her treatise o examiig the case of Hagzhou explais that. She presages how a local compay i Chia is give autoomy to egage i a joit veture 20 ON TRADE Jauary - March 2016

21 which eables foreig compaies to access local markets (page 103) ad that makes Chia a attractive destiatio for multiatioal corporatios. The book is a iterestig treatise that must compel the developig world to d e b a t e a d s c r u t i i s e C h i a s developmetal ecoomic model. Oe may ot agree with this model of ecoomic developmet, but there is o doubt that the book has raised a stimulatig course of developmetal models that must be debated at legth i a coutry like Idia. The book is writte by a Idia policymaker, which must iterest both North Block ad South Block i the Idia govermet. To positio this book from a persoal stadpoit, Sumita Dawra s articulatio o the Chiese ecoomy is her stit i Chia as Idia s ecoomic cousellor. Durig her period i Beijig (more tha three years), Idia politically agreed to joi the Chia-led Asia Ifrastructural Ivestmet Bak (AIIB). She was quite coviced about Idia joiig the AIIB ad made a successful case i covicig the political establishmet i Idia. Notably, Idia was oe of the first coutries to offer its political coset to joi AIIB ad that offered cofidece to may coutries i the world to joi this Chiese-led bak. The policymaker is as forthcomig ad futuristic as she seems i her writigs. World Trade Cetre Bhubaeswar Promoted by MVIRDC World Trade Cetre Bhubaeswar rd 3 Floor, IDCO Tower, Extesio Buildig, Japath, Bhubaeswar

22 Startups Take the App Way to Global Reach Sajay Barkataki Co-fouder, Dazzle Today Ayoug populatio, icreasig smartphoe peetratio ad social media have drive huge ecoomic chage, empowerig Idias to thik differetly. Accordig to a recet study by Nasscom, Idia has aroud 4,400 startups that employ close to 85,000 employees ad a estimated $6.5 billio has bee used as fudig thus far (till 2015). These startups have put Idia o the world map by makig it third as raked by Global Startup 5 Ecosystem Today, Idia is oe of the fastest growig techology ecosystems i the world ad is actively lookig at garerig a larger share of the global techology services market. Iterestigly, for most Idia compaies, the path to global relevace is buildig techology products ad services for busiesses, ot idividuals. These products ad services, typically eterprise software ad apps, help compaies ru diverse aspects of busiess operatios, from evet coordiatio, payroll maagemet to customer egagemet. Mostly, all orgaizatios cotiuously look for i o v a t i v e w a y s t o m i i m i s e ivestmets while adoptig latest techology systems to accelerate growth. As busiesses grow ad try to icrease productivity with limited resources, they costatly eed to upgrade their techology so the demad for a product that simplifies process is pereial. I aswer to this eed, techology is eablig gaiful disruptio across sectors. With advaces i cloud computig, compaies ca ow ru software without buyig or maitaiig ay expesive equipmet. The growth of mobile devices i the workplace has created a eed for accessig busiess data ad applicatios beyod the computer. These chages i techology have allowed agile ad iovative startups to build ad market, cloud ad mobile-based software ad ultimately grab market share from large vedors. Ivetive Idia etrepreeurs are comig up with solutios to problems faced by orgaizatios i day-to-day operatios ad are offerig apps, products ad solutios based o the Software as a Service (SaaS), Platform as a service (PaaS), app, mobile ad web platforms. For example, DazzleToday, a cloud-based app has made plaig ad participatig i trade shows more effective by simplifyig processes like capturig leads ad drivig sales. Apps such as DazzleToday have a uique opportuity to tap ito global markets without eve establishig a presece there. Based o the SaaS model the app is extremely well suited to leverage its stregth by offerig services o cloud ad iteractig quickly with the iitial set of customers. A growig umber of exhibitors, both i Idia ad globally, are turig to apps like DazzleToday to help coordiate logistics ad tackle critical tasks like orgaizatio, plaig ad etworkig. The added advatage is that these services are well uderstood by e x h i b i t i o c o o r d i a t o r s a d admiistrators ad there is a clear eed for them. The last five years have witessed uparalleled growth i the startup ecosystem i Idia, especially i the techology ad e-commerce space. Over the years, Idia's cofidece i its capacity to deliver high quality techology products ad services has grow ad sice the milleium there has bee a coscious attempt to start ew vetures, especially i the techology sector. The primary focus has bee cetred o iovative compaies leveragig techology to solve cosumer problems. Startups have received immese support from the govermet. Idia curretly has over 2 millio mobile app developers ad accordig to Google s Admob, this umber is expected to grow to 3 millio by 2017, at which poit Idia will be the largest base of app developers i the world. With the world's gaze closely fixed o Idia ad the massive possibilities the coutry offers i terms of trade ad busiess, the role of techology will be crucial, goig forward. 22 ON TRADE Jauary - March 2016

23 Polad: Paradise for Ivestors Sławomir Majama, Presidet, The Polish Iformatio ad Foreig Ivestmet Agecy (PAIiIZ) Polish Iformatio ad Foreig Ivestmet Agecy olad is o loger a risig Pecoomic star, but a matured Europea ivestmet maget. curretly, the largest EU coutry i Cetral ad Easter Europe (CEE) by populatio, size ad ecoomy, Polad has become the key destiatio for may regioal ivestmet portfolios. This regioal ecoomic leader is cosidered to be a top table player amog the EU member states ad has EU s brighter success stories. Besides, Polad is positioed oe amog the top 5 FDI receivers i Europe accordig to a UNCTAD report. Polad s growth ad ivestmet attractiveess have bee based o brai power, etrepreeurship ad hard work ad ot o its fiaces, accordig to media sources. Not surprisigly, etrepreeurship is the Polish secod ature. The vibrat busiess spirit, the costat passio for developmet ad the push to be a leader have attracted may iteratioal ivestors. Besides, global players fid a safe have i Polad, especially ow, whe the world is experiecig a ivestmet slow dow. Polad aspires to be Europea frotruer ad to attract the samethikig busiess parters: exceptioal, most iovative compaies. The coutry is ope to ivestors who are kee o buildig a hub of c h a g e a d developmet i Europe. Polad has already attracted may high-tech global players from R&D, ICT a d b u s i e s s - s e r v i c e sectors by offerig creative busiess eviromet, a moder R&D ifrastructure ad most importatly, well skilled, taleted professioals, fluet i foreig laguages such as youg scietists, IT programmers, egieers, ecoomists, desigers ad the rapid growth umbers of high-tech start-ups with their cuttig edge cocepts ready to coquer the world. Growth ad developmet is ot restricted to Polish biggest metropolis, it ca be foud i umerous smaller cities. May of them have strog academic cetres with local techology parks ad clusters. Due to which Rzeszów, Lubli, Bygdoszcz, Opole ad other smaller regioal players are ow the risig stars o f P o l i s h c r e a t i v i t y a d etrepreeurship, attractig both foreig ad Polish most iovative ivestmets. Polad is also ope to Idia compaies. There are may potetial sectors, i w h i c h t h e r e i s p o t e t i a l f o r collaboratio such a s a u t o m o t i v e sector, IT, BPO, miig sector ad food processig. More tha 20 Polish compaies from eergy ad food sector headed by Mr. Mateusz Morawiecki, Deputy Prime Miister ad Witold Waszczykowski, Miister of Foreig Affairs, recetly took part i Make i Idia Week 2016 held from February 13-18, 2016 ad i a busiess forum i Mumbai. At the ed of February 2016, the biggest Polish c o m p a i e s f r o m m i i g s e c t o r participated at the Iteratioal Miig Exhibitio 2016 i Kolkata. This proves that Polad is iterested i establishig busiess relatios with Idia. I the ear future further activities are plaed to support Polish exporters ad to brig Idia compaies to Polad. ON TRADE Jauary - March

24 Challeges of Restructurig Chiese Ecoomy Ke Davies Presidet ad Fouder, Growig Capacity, Ic. hia s leaders are pursuig a Cpolicy of ecoomic restructurig that will mea slower, but more sustaiable, growth rates i future. Durig the chageover to a more cosumptio-cum-services-orieted growth model, the ecoomy is vulerable to shocks that could affect Chia s eighbours ad tradig parters. Like Japa ad the East Asia Newly Idustrialised Ecoomies (NIEs) of Hog Kog, Sigapore, South Korea ad Taiwa, Chia has ejoyed a burst of high GDP growth o the back of a surge i maufacturig exports resultig from major istitutioal factors, especially ecoomic policy liberalisatio ad cotrolled urbaisatio. This surge has lasted loger i Chia tha i its easter eighbours, but is ow edig as the govermet itesifies its efforts to restructure the ecoomy away from reliace o export maufacturig ad fixed capital ivestmet ad towards a ecoomic model based more o domestic cosumptio ad services. The % GDP growth rate is the lowest sice 1990 (the year after the Beijig massacre), though it is almost certaily higher tha i the Asia crisis of the late 1990s, whe although ot recorded i the official statistics the ecoomy was effectively i recessio for oe or two years. The 2015 rate is still a very respectable rate of expasio of atioal output, well above those of all developed ecoomies apart from Irelad, though uusually behid that of Idia ad i lie with the govermet target of 7%. However, the real GDP growth rate is likely to have bee lower tha the official figure ad the outtur i 2016 will be a further slowdow. However, due to the ligerig heritage of the et material product (NMP), statistical methodology that accompaied cetral plaig of the ecoomy from 1953 owards, Chia s GDP figures appear to take isufficiet accout of the private sector ad therefore ted to uderstate growth i boom years ad overstate it durig a dowtur like the preset. Aother caveat is that huge ivestmet i maufacturig has caused cotiuig evirometal damage, estimated at aythig up to 5% of GDP. Attempts to develop a gree GDP measure i Chia have ot yet bee successful. If they were, they would show far lower GDP growth. Stock markets do ot provide a reliable or valid idicator of what is happeig i the real ecoomy, but they ca have a effect o it via the wealth effect, shareholders spedig more because they feel richer whe share prices rise or via the trasmissio of paic whe prices fall. While govermet policy targets i most coutries iclude employmet, iflatio ad growth, ot risig stock prices, it would be foolish for ay govermet to igore market turbulece. I Chia, major ivestmet still occurs largely via bak ledig to state-owed or state-cotrolled idustries, ot so much via stock market IPOs. The stock market has bee used by the govermet more as a way of keepig the public happy by providig some small retur to ivestors which they caot get from the low-iterest-bearig savigs that have fiaced the coutry s idustrial growth. The stock market crash that bega i Jue 2015, whe the Shaghai SE Composite Idex topped the 5,000 mark, compared with its curret level of aroud 2,900, therefore represets a setback for the govermet. This has tried to maitai risig share prices sice the Shezhe ad Shaghai bourses were opeed a quarter of a cetury ago, despite the fact that the fall so far has bee less tha the 150% rise that occurred betwee November 2014 ad November At the same time, Chia s currecy, the remibi or Chiese yua (CNY), has falle agaist the US dollar as a result of huge capital outflows (ad despite a record curret-accout surplus of USD293 billio i 2015) ad speculators outside the coutry cotiue to bet o further pluges. I tryig to stem devaluatio, the govermet has coducted massive yua purchases, ruig dow its foreigexchage reserves from a peak of just below USD4 trillio i mid 2014 to USD3.2 trillio by ed Jauary If the authorities cotiue to maitai the curret effective US dollar crawlig peg i this way, the reserves will fall below the miimum eeded to cover Chia s iteratioal obligatios withi the ext couple of years, so the policy has to be chaged. 24 ON TRADE Jauary - March 2016

25 I expect that the govermet will resist calls from promiet ecoomists to float the currecy ad stregthe capital outflow cotrols util ad ot uless there is a further massive pluge i reserves. With or without a float, devaluatio will cotiue. If ad whe this happes, the exchage rate will probably fall further but the stabilise. Provided capital cotrols are effective, the drai o reserves should the moderate or ed. Hitherto, the Chiese ecoomy has weathered major crises like the Asia fiacial crisis of the late 1990s ad the global crisis of , to the amazemet of may ecoomists both i ad outside Chia. This is partly due to a itervetioist stace by govermet, which has protected the ecoomy from exteral shocks by deferrig capital accout liberalisatio ad other reforms ad by ijectig eormous amouts of ifrastructure ivestmet every time growth appears to be slowig. Somehow, despite the repeated threat of a debt crisis, Chia has so far maaged to muddle through. This may well happe agai, or this may be the begiig of a more difficult period i which the ecoomy remais i doldrums for several years. If the ecoomy does hit a slow patch, the govermet caot repeat the CNY4 trillio (USD 590 billio) stimulus programme that helped it emerged relatively uscathed i The resultat debt moutai has cotiued to grow, as much i the shadow bakig system as i the regular baks, rederig Chia vulerable to a potetial fiacial crisis. The govermet s competece to deal with iteral or exteral shocks has come ito questio after the bugled hadlig of the stock ad currecy markets sice mid That Chia s top leaders share such doubts is evideced by the sackig i February this year of the head of the Chia Securities ad Exchage Commissio (CSRC) that regulates the stock ad currecy markets. What does all this mea for Chia s eighbours ad for the rest of the world? Providers to Chia of atural resources like oil ad ores have for some time bee experiecig fallig reveues from the dowtur i their export volumes ad prices resultig from slowig idustrial expasio there. Steel-producig coutries are sufferig from the offloadig of cut-price steel from Chia, where domestic demad for it has slowed way behid output. Hog Kog s housig prices have rise so far as a result of Chia s capital outflow that homes are o loger affordable for most of the local populatio. More fudametally, Asias are worryig that (1) the slowdow i Chia could tur ito a full-blow slump ad/or that (2) Chia s cotiuig devaluatio could itesify the competitive devaluatios already takig place i the regio which udermies expasio i competitor coutries. If Chiese output growth were to collapse by several more percetage poits, the cotagio effect o the rest of the world would be less tha if such a slowdow were to occur i, for example, the Uited States. However, such a collapse could be importat for coutries that are et exporters to Chia or whose ecoomies are closely liked to it, like Taiwa, or tourism eclaves like Paris ad Hog Kog that have beefited i recet years from a great expasio i the umber of visitors from Chia. Such a sharp slowdow would have a limited impact o Idia. Although, Chia is Idia s largest tradig parter, it evertheless oly receives aroud 4% of Idia s exports, so eve if Chiese demad for Idia s products halved (which is ulikely), it would oly reduce overall exports by 2%, less tha the projected icrease. Ivestmet i Idia by Chiese corporatios remai strog: curret commitmets i gree power, railways ad high-tech, for istace, remai high. Chia ad Idia are complemetary, as well as competitor ecoomies. Uless the devaluatio of yua is much larger tha expected, it is ulikely to give Chia a great export price advatage over Idia. Wages have rise rapidly i Chia over the past decade, rederig factories i coastal areas ucompetitive. However, the two coutries service differet markets. Just as Japa has bee a useful testig groud for ecoomic problems ad policies for Chia, so Chia retais iterest for Idia as aother large, diverse e c o o m y f a c i g m a y s i m i l a r challeges, despite the obvious differeces betwee the two ecoomies. As Chia faces ew or itesified problems i its cotiuig emergece from a state-domiated ecoomy, Idia ca lear much from its successes ad its failures. ON TRADE Jauary - March

26 Trade Promotioal Activities Held This Quarter: Mumbai Luxembourg Officials Visit WTC Mumbai r. Daiel SAHR, Adviser, Iteratioal Affairs, MChambre de Commerce Luxembourg ad Mr. Charles Schmit, Cosul, Embassy of the Grad Duchy of Luxembourg, New Delhi visited the World Trade Cetre Mumbai with a view to promote Ido-Luxembourg relatios. Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai had fruitful discussios i areas of mutual cooperatio ad set out a road map to further the existig collaborative efforts. The meetig was held at the World Trade Cetre Mumbai o Jauary 5, Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai (Right) presetig a memeto to Mr. Daiel SAHR, Adviser- Iteratioal Affairs, Chambre de Commerce Luxembourg (Left). Lookig o is Mr. Charles Schmit, Cosul, Embassy of the Grad Duchy of Luxembourg, New Delhi (Cetre). Chiese Firms Eye Opportuities i Idia Maritime Sector The shipbuildig compaies i Chia are lookig out for busiess opportuities i Idia as Chia has a log coastlie ad growig shipbuildig sector. The shipbuildig sector i Chia is saturated ad it is presetly facig slowdow. However, Idia has a huge market i the shipbuildig sector ad Chiese compaies have the capability to build ships ad meet Idia s demad, said Ms. Le Hogxia, Chairma, Global Trade Uio ad Chairma, Yagzhou Jueg Export ad Import Compay durig a iteractive meetig with the visitig busiess delegatio from Chia. Speakig about the Global Trade Uio, Ms. Hogxia said the body was set up i Hog Kog i 2010 to provide a platform for Chiese compaies to explore commercial ties with their couterparts i Idia. The Uio co-ordiates with trade uios i other coutries to facilitate the etry of Chiese compaies i those coutries. The Uio proposes to expad its activity i Idia as well to facilitate Chiese compaies fid ideal parters i Idia, Ms Hogxia iformed. The Chiese govermet is implemetig the ambitious oe belt oe road project to ehace tradig relatioship betwee Chia ad other coutries, she added. From (L-R): Mr. Li Guiquig, Chairma, Jiagsu Logchua Shipbuildig Group, Dr. Yadya Pitale, Joit Director-Research ad WTI, World Trade Cetre Mumbai, Ms. Le Hogxia, Chairma Global Trade Uio ad Chairma, Yagzhou Jueg Export ad Import Compay ad Mr. Aditya Rasiwasia, Committee Member, All Idia Associatio of Idustries. Mr. Aditya Rasiwasia, Committee Member, AIAI, i his welcome address, said, Idia ad Chia are eighbourig coutries ad they are atural trade parters. Chiese exports to Idia costitute 5% of its overall exports ad it majorly icludes electroic goods ad machiery. Both coutries have a log coastlie ad ca provide huge impetus to the developmet of ifrastructure, especially to Idia s eed for road ad port ifrastructure. While Chia has built excellet ifrastructure facilities, Idia is still developig them. Therefore, both coutries have a atural advatage i collaboratig i the ifrastructure sector. I hope that the preset delegatio (which cosists of compaies i the shipbuildig idustry, port & marie equipmet, power relevat equipmet ad export-import 26 ON TRADE Jauary - March 2016

27 compaies) would explore fruitful busiess opportuities with their couterparts i Idia. The iteractive meetig was held at the World Trade Cetre Mumbai o Jauary 15, Caadia Ivestors Explore Idia Opportuity Mr. Sajay Makkar, Presidet, Ido-Caada Chamber of Commerce (ICCC) led a high-level busiess delegatio from Caada to the World Trade Cetre Mumbai to iteract with the tradig commuity ad explore collaboratio opportuities. The delegatio icluded members of the Parliamet of Caada ad a high profile busiess delegatio represetig sectors like life scieces, pharmaceuticals, healthcare, clea e e rg y, e d u c a t i o, a g r o & f o o d processig, ICT, tourism ad smart cities. Mr. Makkar, i his speech, remarked that the Ido-Caadia relatioship gaied reewed mometum after Mr. Naredra Modi, Idia Prime Miister, visited Caada i Mr. Makkar shared details of the fruitful busiess meetigs ad agreemets iked durig the 11-day trade missio coducted by the Chamber betwee Jauary 4-15, These trade missios aim to ehace cross-border partership of SMEs that costitute 40-50% of the Caadia ecoomy. Mr. Jordo Reeves, Cosul Geeral of Caada i Mumbai, i his opeig remarks, said, Idia is emergig as a upcomig ecoomy i the world while Caadia ecoomic growth is gaiig mometum. Both coutries have great scope for co-operatio i high-ed techologies, ifrastructure, reewable eergy, educatio etc. Caada has huge atural resources i reewable eergy, while Idia is the secod most populous coutry ad a fastest growig ecoomy i the world. Cosiderig this, the preset level of bilateral trade ($6 billio) has scope for expasio. Caadia ivestors have ivested $11 billio i Idia so far, much of which has bee i 2015, Mr. Reeves iformed. From (L-R): Mr. Jorda Reeves, Cosul Geeral, Cosulate Geeral of Caada i Mumbai, Mr. Sajay Makkar, Presidet, ICCC, Dr. Yadya Pitale, Joit Director-Research ad WTI, WTC Mumbai ad Mr. Aditya Rasiwasia, Committee Member, All Idia Associatio of Idustries. He said there are research istitutes, start-up compaies, uiversities i Caada that have developed iovative techology solutios for busiesses, which Idia compaies seek to adopt. Amog all atios, Idia set the largest umber of studets for higher studies to Caada i Presetly, aroud 50,000 Idia studets study i Caada. Caada is a major exporter of uraium, providig scope for collaboratio betwee Caada ad Idia. Caada ca share its expertise i smart city techologies, waste-water maagemet, urba plaig ad traffic maagemet. Mr. Aditya Rasiwasia, Committee Member, All Idia Associatio of Idustries, i his welcome address, iformed that aroud 1.3 millio Idias (3% of Caadia populatio) live i Caada. There is great scope for co-operatio betwee Idia ad Caada i the field of reewable eergy at a time whe the Idia govermet is implemetig the Smart Cities project. The meetig was held at the World Trade Cetre Mumbai o Jauary 15, Caada supplies aroud 40% of letils cosumed i Idia. I the processed food sector, Caadia compaies eed to explore ivestmet opportuities i Idia. ON TRADE Jauary - March

28 Idia Ifrastructure Story Attracts Turkish Firms r. Rizaur Meral, Presidet, TUSKON M(Cofederatio of Busiessme ad Idustrialists of Turkiye) led a busiess delegatio of officials from Turkish Idia Chambers of Commerce & Idustry (TICCI) to explore trade ad ivestmet opportuities i Idia, with top officials of World Trade Cetre (WTC) Mumbai ad All Idia Associatio of Idustries (AIAI). Besides Mr. Meral, other officials who atteded the meetig icluded Mr. Ersi Karaogla, Presidet, TICCI, Mr. Mehmet Ali Seker, Vice Presidet, TICCI, Mr. Bulet Acikgoz, Vice Presidet, TICCI, Mr. Ozgur Ozdemir, Director, TICCI Mumbai, Mr. Katemir Amitov, Board Member, Busiessassociatio JIA (of Kyrgyzsta), Mr. Abdul Wajidh, Coordiator, TICCI Mumbai, Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai, Ms. Rupa Naik, Executive Director, AIAI. Mr. Meral said, Turkish compaies are keely iterested to parter with their Idia couterparts i the ifrastructure sector amely, road, power, ports ad other related sectors. Mr. Meral added that the macroecoomic fudametal i Turkey is ot so strog due to factors like double digit iflatio, high iterest rates. Also, there is slowdow i the ecoomic growth of Europea coutries ad other promiet markets i the world. Uder this coditio, the strog growth i the Idia ecoomy, alog with low iflatio, offers tremedous potetial for foreig compaies to ivest i this coutry. Turkish compaies fid it attractive to ivest i ifrastructure, reewable eergy, textiles, agro food ad other sectors i Idia. While Idia is a huge market with attractive growth opportuities, there is lack of readily available iformatio o the ivestmet aveues ad icetives offered by differet state govermets i the coutry. The cetral ad state govermets must make available this iformatio i order to facilitate foreig compaies ad ivestors, Mr. Meral suggested. Mr. Meral ivited Idia compaies to parter with TUSKON s missios of Focus Africa ad Focus Eurasia (Kazakhsta, Kyrgyzsta, Belarus, Armeia, Russia), to build trade ad ivestmet relatioship with these coutries. I his speech, Mr. Karaogla said, Turkish firms are ot oly iterested to export their goods to Idia but also establish maufacturig facilities i the coutry which is i lie with the Idia govermet s Make i Idia campaig. Mr. Kalatri, i his welcome remarks, said, Idia ad Turkey are atural trade parters as they have log stadig cultural ad ecoomic ties. Idia has the potetial to offer attractive returs to foreig ivestors due to strog ecoomic growth (over 7% GDP growth) ad favourable policy eviromet. Both coutries must collaborate i the areas of ifrastructure, reewable eergy, textiles etc. Especially, the Idia govermet s Smart Cities project offers huge busiess opportuity for Turkish compaies. Durig the meetig, WTC Mumbai siged a memoradum of uderstadig (MoUs) with TUSKON ad TICCI. The iteractive meetig was held at the World Trade Cetre Mumbai o Jauary 23, From (L to R): Mr. Ozgur Ozdemir, Director - TICCI (Turkish Idia Chambers of Commerce & Idustry) Mumbai, Mr. Bulet Acikgoz, Vice Presidet, TICCI, Mr. Katemir Amitov, Board Member, Busiess-associatio JIA (of Kyrgyzsta), Mr. Rizaur Meral, Presidet, TUSKON (Cofederatio of Busiessme ad Idustrialists of Turkiye), Mr. Mehmet Ali Seker, Vice Presidet-TICCI, Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai, Mr. Ersi Karaogla, Presidet-TICCI ad Ms. Rupa Naik, Director-Projects, WTC Mumbai. 28 ON TRADE Jauary - March 2016

29 Ambassador to Promote Ido-Portuguese Ties H.E. Mr. Joao da Camara, Ambassador of Portugal to Idia visited World Trade Cetre (WTC) Mumbai, alog with Mr. Rui Baceira, Cosul Geeral of Portugal i Goa, Mr. Joao Rodrigues Ecoomic Couselor, Embassy of New Delhi to discuss ways to improve bilateral relatios betwee Idia ad Portugal. Mr. Kamal Morarka, Chairma, WTC Mumbai, Capt. Somesh Batra, Vice Chairma, WTC Mumbai, Mr. Sharad Upasai, Vice Chairma, WTC Mumbai ad Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai welcomed the Ambassador of Portugal to Mumbai. Mrs. Rawuel da Camara, wife of the Ambassador, was also preset durig his visit. Durig his meetig with the officials of the WTC Mumbai, Mr. Camara said Idia ad Portugal must ehace their partership i sectors like iformatio ad commuicatio techologies, olive oil, cork, tourism. Curretly, the trade betwee Idia ad Portugal is hardly 800 millio dollars, which has a potetial to double i the ext two years, if the opportuities are properly explored, Mr. Camara added. Mr. Camara further said that the ext editio of the Web Summit would be held i Lisbo i November, I this Summit, more tha 50,000 delegates from across the globe, specifically, over 500 compaies from Idia are expected to participate. Mr. Camara requested WTC Mumbai to lead a delegatio to this Summit. While recollectig his successful experiece i Brazil, Mr. Camara assured that he would take similar efforts to promote the ivestmet of Portugal compaies i Idia Mr. Morarka, while welcomig the Ambassador said, the From (L-R): Mr. Kamal Morarka, Chairma, World Trade Cetre (WTC) Mumbai, H.E. Mr Jõao da Camara, Ambassador of Portugal i Idia ad his wife Mrs. Raquel da Camara ad Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai. sloga of WTC Mumbai is To Grow Trade which aligs with the Idia ecoomy growig at 7.2%. I order to support this growth, the Idia Govermet is takig various iitiatives like Make I Idia ad improvig the ease of doig busiess. The Idia Govermet welcomes foreig ivestmet i sectors such as ifrastructure, defese. Mr. Morarka added that WTC Mumbai will be happy to facilitate trade cooperatio betwee Idia ad Portugal. The meetig was held at the World Trade Cetre Mumbai o February 1, Caadia Islad to Parter Idia i Key Sectors oourable H. Wade MacLauchla, Premier of Price HEdward Islad, Caada, led a high level delegatio of govermet ad busiess leaders to World Trade Cetre (WTC) Mumbai to explore trade ad ivestmet opportuities i Idia, particularly i Maharashtra. A iteractive meetig was joitly orgaized by WTC Mumbai ad All Idia Associatio of Idustries (AIAI) with the visitig delegatio. Speakig o this occasio, Mr. MacLauchla said his delegatio sesed great opportuities i doig busiess with Idia i sectors such as agriculture, food processig, reewable eergy, eergy efficiecy, defese, higher educatio, biosciece, aquaculture, health care ad pharmaceutical. Before visitig WTC Mumbai, Mr. MacLauchla ad his delegatio met Ho ble Prime Miister of Idia, Mr. Naredra Modi twice ad covered 7,200 km startig from Pujab to Maharashtra o a whirlwid tour of Idia ad held meetigs with admiistrative leaders of the States i Idia, to explore partership i the above-metio sectors by way of trade ad ivestmets. Price Edward Islad is officially kow as Caada s Food Islad owig to its leadership i the agriculture ad food processig sector ad it is oe of the biggest exporters of processed food. It also has a ceter of excellece i biosciece ad a vast pool of skilled work force i the maufacturig sector. ON TRADE Jauary - March

30 Hoourable J. Heath MacDoald, Miister of Ecoomic Developmet & Tourism, Govermet of Price Edward Islad ecouraged to start Idia film shoots for Bollywood movies i his provice owig to its paoramic views especially the beaches. Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai, stressed the doublig of the preset $6 billio trade betwee Idia ad Caada i ext three years especially i the sectors of oil & gas, petrochemicals, agriculture ad iformatio techology through Make i Idia ad other related strategic ivestmet areas. WTC Mumbai siged MoUs with BC-Idia Busiess Network (IBN) ad BC- IBN. The evet witessed aroud 200 B2B meetigs. Mr. Paul Ledwell, Deputy Miister of Policies & Priorities, Govermet of Price Edward Islad, Dr. Alaa Abd-El-Aziz, Presidet ad Vice Chacellor, Uiversity of Price Edward Islad ad a high level busiess delegatio from Caada accompaied the Premier. The iteractive meetig was held at the World Trade Cetre Mumbai o February 5, Hoourable H. Wade MacLauchla, Premier of Price Edward Islad, Caada (Right), beig felicitated by Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai (Left). E-tailers to Support Growth of Small, Medium Firms orld Trade Cetre Mumbai ad All Idia WAssociatio of Idustries (AIAI) orgaized a iteractive pael discussio o Bradig: Embracig the E-tailig Era to deliberate o the opportuities ad challeges i the Idia e-tailig idustry which witessed pheomeal growth i recet years. Mr. Moize Hussai Ali, Deputy Director Geeral & State Iformatics Officer, Natioal Iformatics Cetre, Govermet of Idia, delivered keyote address at this evet. Mr. Ali remarked that e-tailig sector promises to revolutioise the busiess model of small ad medium eterprises i every district ad village i Idia. The sector is growig at a aual rate of over 35% ad its size is expected to reach $30 billio i three years from the preset level of $15 billio. Availability of smart digital devices, iteret peetratio, skilled mapower are growth drivers i this sector. - Product Maagemet Digital, Ifibeam.com, emphasized the eed for e-commerce compaies to distiguish themselves from their competitors by commuicatig the uique sellig propositio ad brad image of their products ad services through proper olie chaels. Compaies must select the right product ad target the right category of cosumers to compete successfully i the olie space. Mr. Abhimayu Radhakrisha from Networked Idia moderated the pael sessio. Mr. Amit Thapliyal, Head, Marketig & Digital Iitiatives, Viculum Group poited out that there is a huge growth opportuity for third party logistics providers i the B2C segmet of e-commerce. The marketplace model has tremedously ehaced the cosumer reach of small ad medium eterprises. Aother speaker Mr. Soumya Baerjee, Seior Vice Presidet Capt. Somesh Batra, Vice Chairma, World Trade Cetre Mumbai (extreme left) felicitatig Guest of Hoour Mr. Moize Hussai Ali, Deputy Director Geeral & State Iformatics Officer, Natioal Iformatics Cetre, Govermet of Idia. Lookig o is Ms. Rupa Naik, Director - Projects, World Trade Cetre Mumbai. 30 ON TRADE Jauary - March 2016

31 Mr. Chirag Arya, Co-Fouder, ichef.i, suggested that e- tailig compaies must idetify umet cosumer eeds ad exploit them by creatig a iovative ad cost-effective busiess model. Mr. Apurva Makad, Fouder & CEO, WebXpress, poited out the growth opportuities provided by tier 2, tier 3 ad tier 4 tows i Idia for e-commerce compaies. There is huge etrepreeurship opportuity i the logistics idustry which is valued aroud $120 billio i Idia presetly. I the ext 10 years, the idustry would offer job opportuity to aroud 5 lakh delivery boys or biker boys. Goig forward, e-commerce compaies must parter with logistic compaies to create a robust supply chai i the idustry, Mr. Makad explaied. Capt. Somesh Batra, Vice Chairma, World Trade Cetre Mumbai remarked that Idia has made a great start i the e- tailig or electroic retailig sector. The e-tailig compaies support micro small ad medium eterprises by elimiatig middleme, ehacig customer reach ad promotig brad image. The pael discussio was held at the World Trade Cetre Mumbai o February 11, Ido-Bagladesh Trade has Huge Growth Potetial World Trade Cetre Mumbai orgaized a iteractive meetig with H.E. Mr. Syed Muazzem Ali, High Commissioer, High Commissio for the People's Republic of Bagladesh, New Delhi, Idia. The meetig was atteded by Ms. Samia Naz, Deputy High Commissioer & Head of Missio, Deputy High Commissio for the People's Republic of Bagladesh, Mumbai, Idia, Mr. Yaduvedra Mathur, Chairma ad Maagig Director, Export-Import Bak of Idia besides officials of World Trade Cetre Mumbai. H.E. Mr. Ali iformed that the value of trade betwee Idia ad Bagladesh is US $ 7 billio curretly, ad it has the potetial to grow further i the areas of textiles, pharmaceuticals ad shippig idustries. Mr. Mathur iformed that Export-Import Bak of Idia offers lie of credit upto US $ 3 billio for promotig exports from Idia to Bagladesh ad this could be a great driver for trade ad ivestmet betwee both coutries. The iteractive meetig was held at the World Trade Cetre Mumbai o February 12, From (L-R): Ms. Samia Naz, Deputy High Commissioer & Head of Missio, Deputy High Commissio for the People's Republic of Bagladesh, Mumbai, Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai, Mr. Yaduvedra Mathur, Chairma ad Maagig Director, Export-Import Bak of Idia, H.E. Mr. Syed Muazzem Ali, High Commissioer, High Commissio for the People's Republic of Bagladesh, New Delhi, Mr. Sharad Upasai, Vice Chairma, World Trade Cetre Mumbai ad Mr. Y. R. Warerkar, Executive Director, World Trade Cetre Mumbai. Polad to Stregthe Commercial Ties with Idia r. Stawomir Majma, Presidet, Polish Ivestmet MAgecy, Polad, led a busiess delegatio to explore trade ad ivestmet opportuity i Idia, especially i Maharashtra. A iteractive meetig titled Doig Busiess with Polad was joitly orgaised by World Trade Cetre (WTC) Mumbai ad All Idia Associatio of Idustries (AIAI). The members of the delegatio icluded Mr. Marek Kioczko, Vice Presidet, Director Geeral, Polish Chamber of Commerce, Mr. Michal Portalewski, Board Advisor, Airo Gree Eergy Turbies, Ms. Magdalea Paasiuk-Krasiska represetig the Polish firm SuperDrob. The delegatio also comprised busiess leaders from food processig, furiture, poultry, chemicals, tractors ad miig equipmets sector i Polad. ON TRADE Jauary - March

32 Mr. Majma, said Polad is a strog ecoomy i the Europea Uio ad it is gettig stroger with every passig year. Polish busiess leaders are lookig for parters i Idia, which hold the future of the global ecoomy. There is huge scope for collaboratio betwee both the coutries i the areas of miig, food processig, steel, shipbuildig, iformatio techology ad ITES. Mr. Majma ivited Idia compaies to ivest i Polad by observig that his coutry is the future of Europe ad it offers a safe ad attractive ivestmet climate for Idia compaies. Idia ivestmet i Polad rose seve times i the last five years. However, there is more opportuity for Idia compaies to explore i the Polish ecoomy. Mr. Kioczko provided a overview of the ecoomy of Polad. Polish ecoomy grows at 3.6% aually ad the coutry has a iflatio rate of -0.5% (as of December 2015). Mr. Portalewski iformed that his orgaizatio offers cuttig edge techologies i wid turbies, water turbies ad solar eergy sectors. His orgaizatio is keely lookig for appropriate busiess parters i Idia which offers huge ivestmet potetial for foreig wid eergy compaies. He iformed that Idia is the third largest market for wid eergy techologies. Ms. Paasiuk-Krasiska made a presetatio o the poultry sector i Polad. She said the poultry sector i Polad is dyamic, highly efficiet ad also ope for developmet. Poultry export from Polad is growig at a rate of 10-12% rd aually ad it is the 3 largest exporter i the Europea Uio after Frace ad Hollad. Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai said, Idia ad Polad ejoy strog ecoomic ad political relatioship. The preset level of bilateral trade betwee Idia ad Polad is US$1.6 billio ad there is cosiderable scope to ehace the same. Mr. Slawomir Majma, Presidet, Polish Ivestmet Agecy (Right) beig felicitated by Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai (Left). The iteractive meetig was held at the World Trade Cetre Mumbai o February 13, WTC Mumbai Supports Film Star's Book Lauch Evet orld Trade Cetre (WTC) Mumbai ad All Idia WAssociatio of Idustries (AIAI) joitly orgaised the lauch of ANYTHING BUT KHAMOSH, the biography of the legedary Bollywood actor ad Idia politicia Mr. Shatrugha Siha. The book was authored by Ms. Bharathi S Pradha, who is the editor of The Film Street Joural ad a Suday columist with The Telegraph. The book lauch evet was held i associatio with Mumbai s leadig publishig house Om Books Iteratioal. Mr. Kamal Morarka, Chairma, WTC Mumbai, remarked that publishig programs support book publishers ad writers whose cotributio to the literary world is ivaluable. By supportig this evet, the Cetre aims to fulfill its madate of servig the culturally ad liguistically diverse populatio of Mumbai, Mr. Morarka poited out. Further sharig his thoughts o the book release, he metioed that readers of this book would get cosiderable isights o the legedary actor ad his cotributio to Bollywood. The book would also serve as a widow for iteratioal film fraterity to kow more about Bollywood idustry ad ispire them to explore mutually beeficial collaboratio with the latter. Mr. Morarka iformed that WTC Mumbai has time ad agai associated with may such evets ad that he is grateful to Dr. Amitabh Bachcha for gracig the occasio. Mr. Vijay Kalatri, Presidet, All Idia Associatio of Idustries, remarked that AIAI programs have always ecouraged the developmet, publicatio ad promotio of ew works of literary sigificace i the city. Through its programs ad services, the AIAI supports Film Idustry, artists, orgaizatios ad commuities across Idia, ad welcomes all forms of artistic expressio ad practice. Mr. Kalatri also ackowledged the valuable cotributio made by Mr. Siha to the arts idustry durig his stit as head of BJP 32 ON TRADE Jauary - March 2016

33 C u l t u r e a d A r t s departmet. Mr. Siha is ot oly a vetera actor but a great politicia. His book would ispire buddig film actors ad studets of film istitutes, Mr. Kalatri cocluded. The book lauch was held at Hotel Taj Lads Ed, Mumbai o February 19, From (L to R) Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai, Mr. Kamal Morarka, Chairma, World Trade Cetre Mumbai, Ms. Bharathi S. Pradha, Editor, Film Street Joural, Mr. Shatrugha Siha, Politicia ad Actor, Mr. Subhash Ghai, Producer- Director, Mrs. Pooam Siha, wife of Mr. Siha ad Mr. Amitabh Bachcha, Actor. WTC Miami to Ehace Global Reach of Idia Firms s. Charlotte Gallogly, Board Director, World Trade MCeters Associatio, New York ad Presidet, WTC Miami met the members of the maagemet coucil of World Trade Cetre (WTC) Mumbai to discuss the scope of partership betwee both orgaizatios. Durig the meetig, Ms. Gallogly said WTC Miami is iterested i parterig with the WTC Mumbai to ehace the busiess activities of both the regios i their respective coutries. Both orgaizatios ca collaborate effectively by promotig trade shows, which is a effective meas for explorig trade ad ivestmet opportuities i differet regios. WTC Miami has aroud 4,000 members ad may of them are iterested i associatig with Idia compaies. Therefore, Ms. Gallogly ivited Idia idustries to participate i the trade shows like air cargo show, food ad beverages show which are orgaized by WTC Miami. She assured that WTC Miami would work towards improvig the brad visibility of Idia busiesses, particularly, the members of WTC Mumbai i wester coutries. Participats also discussed ways to stregthe co-operatio amog 330 WTCs across the world. There is a eed to orgaize a discussio forum amog all the WTCs ad chalk out a blueprit for mutual collaboratio i the areas of trade ad ivestmet, Ms. Gallogly opied. Amog all the WTCs, oly aroud 100 ceters are active ad hece there is a eed to guide the o-active ceters i their trade promotio activities. WTC Mumbai is actively ivolved i exchagig trade delegatios, orgaizig trade shows, cofereces, iteractive busiess meetigs ad other trade facilitatio activities. World Trade Cetre Mumbai ca assist other WTCs across the world i replicatig its successful model of trade promotio, Ms. Gallogly added. From (L to R): Mr. Sharad Upasai, Vice Chairma, World Trade Cetre Mumbai, Ms. Charlotte Gallogly, Board Director, World Trade Ceters Associatio, New York ad Presidet, WTC Miami ad Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai. Mr. Sharad Upasai, Vice Chairma, WTC Mumbai also agreed that all WTCs must actively promote trade ad ivestmet i their regios. All WTCs must take coscious effort to promote their brad image through various ways ad oe amog them is actively participatig i global evets such ON TRADE Jauary - March

34 as World Ecoomic Forum, meetigs ad cofereces of World Trade Orgaisatio. Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai welcomed busiess commuity i Miami to seek potetial parters i Idia, which has emerged as the fastest growig ecoomy i the world. Emphasisig the eed for co-ordiatio amog all WTCs, Mr. Kalatri supported the idea of orgaizig a joit discussio forum amog all WTCs uder the leadership of Mr. Ghazi Abu Nahl, Chairma, World Trade Ceters Associatio to discuss co-ordiated actio pla. WTC Mumbai offers full co-operatio to World Trade Ceters Associatio i this edeavour, Mr. Kalatri added. The meetig was held at the World Trade Cetre Mumbai o February 19, Nepal Prime Miister Ivites Idia Ivestmet World Trade Cetre (WTC) Mumbai ad All Idia Associatio of Idustries ( A I A I ) j o i t l y o rg a i z e d a iteractive meetig with H.E. Mr. Khadga Prasad Sharma Oli, Right Hoourable Prime Miister of the Federal Democratic Republic of Nepal. H.E. Mr. Oli poited out that there w e r e t r e m e d o u s b u s i e s s opportuities for Idia busiessme to explore possibilities of doig busiess i Nepal. Nepal presets a coducive atmosphere for doig b u s i e s s i t h e a r e a s o f maufacturig, hydropower, IT ad tourism. The evet was atteded by may promiet persoalities i the Bollywood film idustry icludig Ms. Maisha Koirala, Ms. Tabu, Mr. Govida, Mr. Gulsha Grover, Mr. Firoz Nadiadwala, Mr. Keta Desai, Ms. Deepa Mehta, Mr. Mamoha Shetty, Mr. Subhash Ghai. Mr. Pahlaj Nihalai, Chairma of Cetral Board of Film Certificatio (CBFC) was also preset durig the occasio. From (L-R): Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai (left) greets Mr. Khadga Prasad Sharma Oli, Right Hoourable Prime Miister of the Federal Democratic Republic of Nepal. Lookig o is Mr. Govida, Actor, Bollywood. Ambassador of Idia i Nepal H.E. Mr. Rajit Rae ad Ambassador of Nepal i Idia H. E. Mr. Deep Kumar Upadhyay were also preset. H. E. M r. O l i s u g g e s t e d t h e Bollywood idustry to explore the possibilities of film shootig i Nepal, which has abudace of sceic beauty, glaciers ad plety of ope space ad is more suited for tourism ad locatio shootigs. Mr. Vijay Kalatri Vice Chairma, WTC Mumbai said We Idias are iterested i takig advatage of the busiess opportuities Nepal has to offer ad we would like to participate i programmes orgaized by Nepal give a opportuity. He also said, We caot forget Nepal ad Idia share log stadig cultural ad friedly ties ad would ot like to miss ay busiess opportuities ad participate i rehabilitatio programmes of Nepal after the earthquake. The iteractive meetig was held at Hotel Grad Hyatt Mumbai o February 24, Besides Bollywood persoalities, may idustrialists from Idia ad Nepal, seior officials of Nepalese govermet, Idia Budget FY17 to Boost Rural Ifrastructure orld Trade Cetre (WTC) Mumbai ad All Idia WAssociatio of Idustries (AIAI) joitly orgaized a iteractive pael discussio o Implicatios of the Uio Budget with special emphasis o direct ad idirect taxes. Mr. Ravider Saroop, IRS, Commissioer of Cetral Excise & Service Tax, Large Taxpayer Uit Mumbai, while deliverig the keyote address, remarked that the Uio Budget was a welcome balacig act of adherig to the fiscal prudece ad at the same time addressig the ifrastructure eeds of rural areas. The fiace miister has take various tax measures keepig i mid the iterest of small tax payers, promotio of Make i Idia, simplificatio ad ratioalizatio of tax structure ad other progressive goals, Mr. Saroop metioed. 34 ON TRADE Jauary - March 2016

35 divided of more tha Rs 10 lakh. Mr. Dadi B Egieer, Seior Parter, Crawford Bayley & Co applauded the govermet for stickig to the fiscal deficit target of 3.5% ad thereby maitaiig fiscal prudece. From (L to R): Mr. M. S. Mai, Seior Director - Idirect Tax, Deloitte Touche Tohmatsu Idia Pvt. Ltd, Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai, Mr. Ravider Saroop, IRS, Commissioer of Cetral Excise & Service Tax, Large Taxpayer Uit Mumbai, Capt. Somesh Batra, Vice Chairma, World Trade Cetre Mumbai, Mr. Firoze B. Adhyarujia, Seior Advocate, High Court Mumbai ad Mr. Dadi B Egieer, Seior Parter, Crawford Bayley & Co. Mr. Firoze B. Adhyarujia, Seior Advocate, High Court Mumbai welcomed some of the progressive steps such as hike i the turover limit for small ad medium eterprises uder the presumptive taxatio scheme ad extesio of this scheme eve to professioals. However, Mr. Adhyarujia was critical o the impositio of additioal tax of 10% o recipiets of Mr. M. S. Mai, Seior Director-Idirect Tax, Deloitte Touche Tohmatsu Idia Pvt. Ltd remarked that the budget has tried to ratioalize ad simplify the compliace procedure for tax payers. He poited out that 95% of the tax provisios i the budget are aimed at ratioalizatio of procedures. Capt. Somesh Batra, Vice Chairma, WTC Mumbai remarked, Through this budget, the govermet has tried to achieve the triple goals of supportig the rural ecoomy, improvig the ease of doig busiess ad creatig a o-adversarial tax regime. Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai poited out that this is the first time the uio budget is addressig rural growth cocers after a gap of 13 years. He raised hope that the budgetary measures towards boostig rural ifrastructure would bear fruits i the ext oe year. The iteractive pael discussio was held at the World Trade Cetre Mumbai o March 3, WTC Mumbai Sigs MoU with Chamber from Grad Duchy of Luxembourg orld Trade Ceter (WTC) Mumbai siged WMemoradum of Uderstadig (MoU) with the Chamber of Commerce of the Grad Duchy of Luxembourg ad Idia Busiess Chamber of Luxembourg durig the visit of H.E. Mr. Etiee Scheider, Deputy Prime Miister ad Miister of Ecoomy, Grad Duchy of Luxembourg alog with a 35-member high level delegatio from Luxembourg. The MoU was siged by Mr. Sharad Upasai, Vice Chairma, WTC Mumbai ad Mr. Robert Deewald, Vice Presidet- Chamber of Commerce ad Mr. Y. R. Warerkar, Executive Director WTC Mumbai ad Mr. Sudhir Kumar Kohli, Fouder Presidet joitly with Mr. Pedro Castilho, Presidet, Idia Busiess Chamber of Luxembourg i presece of H.E. Mr. Sam Schreier, Ambassador of Luxembourg i Idia ad Mr. Ashok Kadakia, Hoorary Cosul Geeral of Luxembourg i Mumbai. Mr. Sumit Mullick, Chief of Protocol & Additioal Chief Secretary, Govermet of Maharashtra was also preset o this occasio. The meetig was held at the World Trade Cetre Mumbai o March 3, Exchage of siged MoU betwee Mr. Sharad Upasai, Vice Chairma, WTC Mumbai (right) ad Mr. Robert Deewald, Vice Presidet, Chamber of Commerce of the Grad Duchy of Luxembourg (cetre). Lookig o is Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai (left). ON TRADE Jauary - March

36 Luxembourg Eyes Trade Opportuity i Idia.E. Mr. Etiee Scheider, Deputy Prime Miister ad HMiister of Ecoomy, Grad Duchy of Luxembourg paid a exploratory visit to Idia with a 35-member high level delegatio from Luxembourg. Seior officials of the World Trade Cetre (WTC) Mumbai ad All Idia Associatio of Idustries (AIAI) held a iteractive meetig with H.E. Mr. Scheider ad his delegatio members. Durig the meetig, H.E. Mr. Scheider iformed that his delegatio visited Idia to explore the treds ad opportuities for ivestmets i this coutry agaist the backdrop of the progressive policy measures take by the Idia govermet. The delegatio members are lookig for partership with Idia i the sectors like steel, logistics, automotive, iformatio techology, commuicatio ad fiacial services. Mr. Scheider metioed that the bilateral trade betwee Idia & Luxembourg is hardly US$ 51 millio curretly, ad he expects it to double i the ext 3 years, as Luxembourg is growig at 5.2% ad has a cotrol o iflatio ad attracts secod largest ivestmets i Europe. Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai, speakig o this occasio, poited out that this is the most opportue time for foreig compaies to ivest i Idia as the domestic ecoomy is growig at a strog pace, the govermet is improvig the ease of doig busiess i the coutry ad welcomig foreig ivestmet i the maufacturig sector through Make i Idia programme. Mr. Kalatri suggested compaies from Luxembourg to ivest i Idia by takig advatage of the stabilized commercial real estate prices i the coutry ad the govermets Make i Idia projects. A MoU was siged by WTC Mumbai with the Chamber of Commerce of the Grad Duchy of Luxembourg ad Idia Busiess Chamber of Luxembourg, o this occasio, i the presece of H.E. Mr. Etiee Scheider, Deputy Prime Miister ad Miister of Ecoomy, Grad Duchy of Luxembourg which aim to further bilateral trade betwee the two regios. H.E. Mr. Etiee Scheider, Deputy Prime Miister ad Miister of Ecoomy, Grad Duchy of Luxembourg (Cetre) beig felicitated by Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai (To the Right of Deputy Prime Miister). Also see i the photo from (L- R): Mr. Ashok M. Kadakia, Ho. Cosul, Hoorary Cosulate of Luxembourg i Mumbai (Extreme left), H.E. Mr. Sam Schreier, Ambassador, Embassy of Grad Duchy of Luxembourg i Idia (Left of Deputy Prime Miister), Mr. Y. R. Warerkar, Executive Director, World Trade Cetre Mumbai (Extreme right). The meetig was atteded by Mr. Sumit Mullick, Chief of Protocol & Additioal Chief Secretary, Govermet of Maharashtra, H.E. Mr. Sam Schreier, Ambassador of Luxembourg i Idia ad Mr. Ashok Kadakia, Hoorary Cosul Geeral of Luxembourg i Mumbai, Ms. Rupa Naik, Director-Projects, WTC Mumbai, Capt. Somesh Batra, Vice Chairma, WTC Mumbai ad Mr. Sharad Upasai, Vice Chairma, WTC Mumbai ad members of the delegatio, idustrialists, govermet officials ad others. The iteractive meetig was held at World Trade Cetre Mumbai o March 4, Celebratig Wome's Etrepreeurship i Fie Arts he World Trade Cetre (WTC) Mumbai celebrated TIteratioal Wome s Day recogisig wome s cotributio to fie arts ad its impact o employmet. The Hoourable Pakaja Mude, Miister of Rural Developmet, Wome ad Child Welfare, Govermet of Maharashtra was ivited to address the wome. She said, Wome have rise ad come to the maistream, cotributig to society. Fifty per cet of Idia s populatio comprises wome ad if Idia is to be a superpower, their ivolvemet ad egagemet i society must be promoted. We must empower our less privileged sisters i the society, she added. The evet was orgaised by WTC Mumbai, All Idia Associatio of Idustries (AIAI) ad the Ido-Frech C h a m b e r o f C o m m e r c e ( I F C C I ) o t h e t h e m e, FELICE.celebratig the elegace of womahood. I support of Save the Girl Child, the WTC Mumbai preseted a poem titled Haak (i Marathi implyig call for actio ) to the Miister which was composed ad recited by Ms. Gauri Prabhu. Ms. Laura Prasad, Secretary Geeral, IFCCI said that it is 36 ON TRADE Jauary - March 2016

37 empower, to eable ad to erich by Ms. Suita Bhuya, violiist, Ms. Merli Dsouza, piaist ad Ms. Swarupa, percussioist, ethralled the audiece with their performace. From (L-R): Ms. Rupa Naik ad Miister Pakaja Mude addressig the Iteratioal Wome s Day celebratio at WTC Mumbai. importat for all wome across cultures ad i this case from Frace ad Idia to coect, get empowered for the bettermet of lives persoally ad professioally. Ms. Rupa Naik, Director-Projects, WTC Mumbai said, Iteratioal Wome s Day symbolises celebratio of various shades, expressios ad moods of wome s creativity ad their cotributio to erich, empower ad elive wome s lives worldover. The evet reflected o progress by wome, to call for chage ad to exemplify talet, trasformig their lives ad i tur erich the lives of millios. A spellboud musical performace 3E sigifyig to The evet had kowledge sessios o fiace, yoga ad a extravagaza featurig dace sequeces ad music performaces by reowed artists. Shakti Cult a B h a r a t a t y a m c l a s s i c a l d a c e b y M s. R e v a t h i Sriivasraghava, Fouder ad Director, Nrityarajai Fie Arts Academy ad her disciples, depicted the goddess blessigs ad impartig of tolerat qualities alog with the compassio of motherhood. Ms. Debi Basu s studets preseted Ardhaariswar a Odissi performace celebratig the oe-ess of the masculie ad the femiie of creatio ad destructio, of beauty of the atural world or prakriti ad the objectivity ad abstractio of Purusha (meaig the cosmic ma or self) A remedy to attai true happiess was revealed by Ms. Reea Doshi, a oted yoga istructor through her lecture o the holistic approach to welless by meas of yoga ad teachigs from Idia scriptures. For empowerig ad guidig wome towards fiacial security, Ms. Masarrat Fakih, Allegiace Advisors Pvt Ltd, a expert o fiacial plaig ad ivestmets preseted the meas to achieve it i her talk o ivestmets. The evet was held at the World Trade Cetre Mumbai o March 8, Film Divisio ad Doordarsha Kee to Collaborate with World Trade Cetre Mumbai meetig was held Awith Mr. Mukesh Sharma, Director Geeral, Films Divisio ad Additioal Director Geeral- Programme, Doordarsha to discuss future collaborative activities betwee World Trade Cetre Mumbai ad F i l m D i v i s i o a d Doordarsha. The meetig was held at the Wo r l d Tr a d e C e t r e Mumbai o March 15, Mr. Mukesh Sharma, Director Geeral, Films Divisio ad Additioal D i r e c t o r G e e r a l - P r o g r a m m e, D o o r d a r s h a ( L e f t ) beig felicitated by Mr. Y. R. Warerkar, Executive Director, World Trade Cetre Mumbai (Right). Also see i the picture is Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai. ON TRADE Jauary - March

38 Kotra Evices Iterest to Promote Bilateral Trade r. Dog Wo, Lee, MDirector Geeral, K o r e a T r a d e - Ivestmet Promotio Agecy, Mumbai visited the World Trade C e t r e M u m b a i w i t h t h e objective to promote Korea s trade w i th I d ia t h r o u g h collaborative activities. The meetig was held at the World Trade Cetre Mumbai o March 16, Mr. Dog Wo, Lee, Director Geeral, K o r e a T r a d e - Ivestmet Promotio Agecy, Mumbai (left) beig felicitated by Mr. Y. R. Warerkar, Executive Director, World Trade Cetre Mumbai (Cetre). Also see i the picture is Mr. Vijay Kalatri, Vice Chairma World Trade Cetre Mumbai (Right). Social Etrepreeurship Gais Tractio i Idia oe-day iteractive pael discussio o A Sustaiability through Social Etrepreeurship was joitly orgaised by World Trade Cetre (WTC) Mumbai ad All Idia Associatio of Idustries (AIAI). Mr. James Rajaayagam, Project Cosultat, Cetre for Social Iovatio & Etrepreeurship, IIT Madras said, that there is tremedous opportuity to make profitable busiess veture i social sectors. Various ivestors like veture capitalists, private equity fud raisers ad developmet orgaizatios like World Bak, philathropic bodies like Bill ad Melida Gates Foudatio are eager to fud viable busiess ideas i social sectors. Ms. Mrialii Kher, Hoorary Secretary & Trustee, Kherwadi S o c i a l We l f a r e A s s o c i a t i o o p i e d t h a t s o c i a l etrepreeurship is a lucrative professio where people ca ear a decet livig while also cotributig cosiderably to the welfare of the society ad eviromet. Ms. Mamta Borgoyary, Chief Executive Officer of FXB Idia Suraksha said that the biggest challege for social eterprises is accessig log-term capital. Social outcomes like skillig rural wome, geeratig employmet opportuities for them takes several years ad hece ivestors caot expect returs From (L-R): Mrs. Nirmala Kadalgaokar, Chairperso, Vivam Solid Waste Maagemet Pvt. Ltd., Mr. Priyak Tiwari, Associate Director, Sakalp Forum, Itellecap, Mr. Jayat Nataraju, Co-fouder & Director, Sampur(e)arth Eviromet Solutios, Ms. Aarti Wig, Idia Coutry Director, Yuus Social Busiess, Mr. Firoze B. Adhyarujia Sr. Advocate, Supreme Court, Ms. Rupa Naik, Director Projects, World Trade Cetre Mumbai, Ms. Khyati Naravae, Assistat Director Trade Promotio, World Trade Cetre Mumbai, Dr. Madhav Sathe, Jt. Ho. Secretary, The Bombay Mothers & Childre Welfare Society, Ms. Chhaya Sehgal, Fouder ad CEO, The Wiig Edge, Mr. Prerit Raa, Co- Fouder & CEO, Agrasar, Ms. Mamta Borgoyary, Chief Executive Officer, FXB Idia Suraksha, Ms. Mrialii Kher, Ho. Secretary & Trustee, Kherwadi Social Welfare Associatio, Mr. Sudhir Deshpade, COO, Ecoad ad Mr. James Rajaayagam, Project Cosultat, Cetre for Social Iovatio & Etrepreeurship, IIT Madras. 38 ON TRADE Jauary - March 2016

39 i a short period of time. This provides developmetal assistace to margialized childre, families ad commuities i rural ad urba Idia. She said that social eterprise is a log gestatio busiess ad hece it eeds ivestors who ca commit capital without expectig quick returs. Lauchig busiess vetures i social sectors is aki to sowig the seeds for a better society i future. Mrs. Nirmala Kadalgaokar, Chairperso, Vivam Solid Waste Maagemet Pvt Ltd. poited out how she provided livelihood to hudreds of ueducated rural wome by settig up solid waste collectio ad processig facilities i several villages of Maharashtra. Dr. Madhav Sathe, Jt. Ho.Secretary, The Bombay Mothers & Childre Welfare Society explaied how social busiesses ca become profitable by adoptig iovative fiacig model ad cost-effective busiess strategy. Also, he suggested that the cetral ad state govermet must ivest o capacity buildig for the officials at gram pachayat so that they ca effectively collaborate with social etrepreeurs i devisig viable busiess models. Ms. Aarti Wig, Idia Coutry Director, Yuus Social Busiess opied that social etrepreeurship is all about fidig a middle path betwee profitability ad sustaiability of the plaet. Ms. Rupa Naik, Director-Projects, World Trade Cetre said that social etrepreeurs have a direct impact o society for a specific cause which beefits large sectios of society. They have a missio which is very oble but a visio which is large. Ms. Chhaya Sehgal, Fouder ad Chief Executive Officer, The Wiig Edge moderated the pael discussio. O the occasio a Hadbook Sustaiability through Social Etrepreeurship was released. The iteractive pael discussio was held at the World Trade Cetre mumbai o March 17, Promotig Ties with Taipei World Trade Cetre r. Michael Li, Director, Taipei World Trade Cetre Mvisited World Trade Cetre Mumbai to discuss the th promotio of the 26 Taipei Iteratioal Food Show scheduled from Jue 22-25, 2016 i Taiwa with Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai. The meetig was held at the World Trade Cetre Mumbai o March 21, Mr. Michael Li, Director, Taipei World Trade Cetre (secod from left) with Mr. Vijay Kalatri, Vice Chairma, World Trade Cetre Mumbai (first from left). Other see i the picture (L-R) Ms. Soali Hule, Trade Promotio Specialist, Taipei World Trade Cetre, Ms. Rupa Naik, Director Projects, World Trade Cetre Mumbai ad Ms. Khyati Naravae, Assistat Director Trade Promotio, World Trade Cetre Mumbai. ON TRADE Jauary - March

40 Experts Raise Alarm Over Water Crisis pael discussio o Water Matters: Water for All Awas orgaised by World Trade Cetre (WTC) Mumbai ad Maharashtra Water Resources Regulatory Authority (MWRRA) to mark World Water Day. Dr. Mihir Shah, Former Member of the Plaig Commissio, Govermet of Idia preseted the keyote address. He said, We eed a paradigm shift i water maagemet. The first part ivolves efficiet maagemet of commad areas of water, which ca be leart from the models of Gujarat, Adhra Pradesh ad Madhya Pradesh. Also, the last mile coectivity would esure that the farmer receives the water stored i dams. Dr Shah opied that the govermet s role i water maagemet is oly that of a facilitator, by makig data o water resources available to farmers ad others, to take iformed decisios o use of groudwater. Mr. Nikhilesh Jha, IAS, Additioal Secretary & Missio Director, Natioal Water Missio, Govermet of Idia opied that the state govermets must empower water users associatios, ecourage participatory water maagemet ad commuity-led commad area developmet. Though Idia receives o a average more raifall every year as compared to Israel, yet the latter meets its water demad, through recyclig of waste water ad desaliatio of sea water. Mr. Jha raised cocers about the quality of freshwater i the coutry give that oly 19% of the sewage water is treated before it is released ito sea ad other water bodies. Mr. Maish Kumar, Sr. Istitutioal Developmet Specialist, Water ad Saitatio Programme, The World Bak called for commuity actio rather tha govermet itervetio sayig, There is a eed for social respose to water ad saitatio issues. Mr. Ravi B. Budhiraja I.A.S. (Retd.), Chairma, MWRRA highlighted the poor urba water maagemet by metioig that the biggest threat for water security is the discharge of utreated sewage water i rivers ad other water bodies. At a time whe the populatio i urba areas is risig rapidly, there is a dyig eed to evolve effective solutios for urba water maagemet ad regulatio. Maharashtra is the leader i settig up a regulatory orgaizatio i the water sector. Dr. Mihir Shah, Former Member of the Plaig Commissio, Govermet of Idia beig felicitated by Mr. Vijay Kalatri Vice Chairma, WTC Mumbai. Mrs. Malii Shakar, I.A.S., Additioal Chief Secretary- Eviromet, Govermet of Maharashtra said Amidst the uproar over the claim o water resources, we have forgotte the issue of water quality. Quality of drikig water ca be esured oly through 100% treatmet of sewage water before it mixes with fresh water, Ms. Shakar explaied. Mr. Vijay Kalatri, Vice Chairma, WTC Mumbai remarked Idividuals ad govermet must practice what they preach ad the accoutability for water coservatio lies at all levels. Also, govermet must set up a effective accoutability mechaism to esure that schemes are implemeted i a timeboud maer. Explorig busiess opportuities i water maagemet ot oly addresses water crisis, but also geerates employmet opportuities ad overall growth of the ecoomy. The iteractive meetig was held at the World Trade Cetre Mumbai o March 23, World Trade Cetre Istitute (WTCI) th Post Graduate Diploma i Foreig Trade Eters 54 Batch th TC Istitute started its 54 Batch of its Post WGraduate Diploma i Foreig Trade o Jauary 18, The participats who atteded the programme comprised professioals workig i top maagemet cadre, sales maagers seekig specializatio i export import ad studets optig for a career i exports. The ext batch of the course is to commece o Jue 15, The course was held at the Wo r l d Tr a d e C e t r e Mumbai o Jauary 18, ON TRADE Jauary - March 2016

41 WTC Istitute Studets Get Field Trip Idustry Experiece ON TRADE As part of the course curriculum, a practical orietatio sessio was coducted by the Istitute, where 43 studets were chose from the Post Graduatio Diploma i Foreig Trade (PGDFT), Post Graduate Diploma i Logistics & Shippig (PGDL&S) ad Certificate Course i Export-Import Busiess (CCEIB) for a field trip to the followig three sites: Pujab Coware Cotaier Freight Statio at Droagiri The studets were provided firsthad experiece of what happes to a cosigmet oce it eters the yard, stuffig ad de-stuffig of cargo, examiatios by custom officials, documet verificatio, warehousig facilities ad mechaized system of hadlig the cargo. sector developed by the Port, loadig ad uloadig of cotaiers from ships ad were impart iformatio o upcomig projects of the Port. Promas Egieer Pvt. Ltd., Maufacturig Uit at Rabale The maufacturig uit of Promas Egieer Pvt Ltd was chose for the studets as it is oe of the most efficiet ad reliable machiery maufacturig compaies of Idia, creatig iovative solutios i various idustries like Studets of WTCI observig the cotaier hadlig operatios at Pujab Coware CFS Jawaharlal Nehru Port Trust (JNPT) at Ura The studets were show five termials icludig three private Studets at Promas pharmaceutical, chemical, cosmetic, food products ad bulk drug. They visited three maufacturig uits ad were orieted i the workigs of the idustry, processes for product developmet which otherwise is kow oly i theory. The visit beefited the studets as it served as good learig experiece ad to uderstad the various logistics ad shippig activities udertake at a port, cotaier freight statio (CFS) ad maufacturig uit. The field trip was held at various sites o February 1, View of Jawaharlal Nehru Port Cotaier Termial WTC Istitute Lauches Course for Small Busiess Start-ups TC Istitute lauched its Certificate Course i WSmall Busiess Start-Ups desiged for aspirig etrepreeurs. The Course addressed issues such as challeges of lauchig a startup ad provided them iformatio o how they could make their busiesses reach out to iteratioal markets. The studets who registered for the Course are from diverse fields possessig a strog etrepreeurial spirit. The course was held at the World Trade Cetre Mumbai o March 5, ON TRADE Jauary - March

42 GRD College, Coimbatore Visit WTC Mumbai 0 Maagemet Studets from GRD College, 8Coimbatore visited WTC Mumbai to uderstad iteratioal busiess procedures ad services ad facilities offered by WTC Mumbai. Mr. A. O. Kuruvila, Advisor, Trade & Educatio made the presetatio o the activities of WTC Mumbai ad also explaied its role i the promotio of iteratioal trade. The visit was held at the World Trade Cetre Mumbai o February 10, GRD studets alog with WTC officials Semiar o Iteratioal Trade & Export Promotio TC Istitute i associatio with Maharashtra Cetre Wfor Etrepreeurship Developmet (MCED) orgaized a semiar for etrepreeurs i Naded District, Maharashtra. Mr. Ekath Birari a expert i Iteratioal Trade & Fiace ad Faculty at WTC Istitute coducted a sessio coverig aspects of iteratioal trade, market eviromet, product selectio, licesig requiremets ad trade fiace optios. He also made a elaborate presetatio o export promotio of agri products. View of participats The semiar was held i Naded District o March 18, Hope College from Michiga Visit WTC Mumbai TC Mumbai orgaized a iteractive meetig for WBaker s Scholars busiess delegatio at Hope College i Michiga, USA for a group of 14 studets which was part of a short-term global immersio course. The group cosisted of highly focused professioals who have doe sigificat research. The delegatio was led by Ms. Vicki Te Hake, Professor of Maagemet, Hope College. Their visit to Mumbai was aimed to better uderstad the top idustries, how to do busiess i the regio ad lear from successful orgaizatios. Mr. Aru Sehgal, Chairma, Chempro Group of Compaies spoke o the growth ad prospects of the pharmaceutical idustry i Idia ad its potetial to steer the idustry ahead to a much higher level. Mr. D. K. Nagia, Deputy Geeral Maager, Idia Trade Promotio Orgaisatio (ITPO) made a presetatio o the role of ITPO i Idia s Trade Promotio as well as provided importat iteratioal exhibitios orgaized by their orgaisatio. Mr. A. O. Kuruvila, Advisor-Trade & Educatio made a presetatio o the cocept of WTC ad the WTC Officials with studet delegatio services ad facilities offered by WTC Mumbai. Mr. Y. R. Warerkar, Executive Director, World Trade Cetre Mumbai ad Ms. Rupa Naik, Director-Projects, World Trade Cetre Mumbai also iteracted with the studets. The iteractive meetig was held at the World Trade Cetre Mumbai o March 23, ON TRADE Jauary - March 2016

43 HAPPENINGS... Exhibitios ad Evets held from Jauary - March 2016 Cetre 1 Buildig 205 Evets Expo Cetre 12 Exhibitios At a Glace ON TRADE Exhibitios Natioal Silk Expo t h Paacea-7 Natural Products Expo Idia The Luxurious Weddig, Jewellery & Lifestyle Affair 2016 Stadard Chartered Mumbai Maratho 2016 Brads & Private Labels 2016 Property, Lifestyle & Cosumer Expo Superstars Busiess Expo 2016 Times Ethic Fashio Village 2016 VIHA Fashio & Lifestyle Expo Iteractive Meetigs Mr. Le Hogxia, CEO- Yagzhou Jueg Export ad Import Compay ad Busiess Delegatio, Chia H.E. Mr. Joao da Camara Ambassador of Portugal, Mr. Rui Baceira, Cosul Geeral of Portugal i Goa ad Mr. Joao Rodrigues, Ecoomic Couselor, Embassy of New Delhi Doig Busiess with Price Edward Islad, Caada -Chief Guest- Hoourable H. Wade MacLauchla, Premier of Price Edward Islad, Caada ad High Level Busiess Delegatio Doig Busiess with Polad -Chief Guest H. E. Piotr Gliski, Deputy Prime Miister, Republic of Polad,Mr. Radoslaw Domagalski Udersecretary of State, Miistry of Developmet, Republic of Polad ad High Level Busiess Delegatio Shri Khadga Prasad Sharma Oli, Rt. Ho'ble Prime Miister of the Federal Democratic Republic of Nepal ad Ms. Maisha Koirala Mr. Charles Schmit, Cosul for Trade & Tourism VISA, Luxembourg Embassy, Delhi, Mr. Daiel Sahr - Adviser with the Departmet of Iteratioal Affairs at the Chamber of Commerce of Luxembourg Meetigs/ Lucheo Meetig Mr. Daiel Sahr, Adviser -Departmet of Iteratioal Affairs Chamber of Commerce of Luxembourg Mr. Sajay Makkar, Presidet-Ido-Caada Chamber of Commerce ad a High Level Busiess Delegatio, Caada Ms. Siti Fatimah, Vice Cosul (Ecoomics) Cosulate Geeral of the Republic of Idoesia, Mumbai Rajastha Govermet Officials -Mr. L. C. Jai, Additioal Director Idustries, Govermet of Rajastha ad Mr. Mada Yadav, Maager, Bureau of Ivestmet Promotio Shri Navee Pataik, Ho ble Chief Miister of Odisha Mr. Mukesh Sharma, Director Geeral, Films Divisio ad Additioal Director Geeral-Programme, Doordarsha Mr. Dog Wo, Lee, Director Geeral, Korea T r a d e - I v e s t m e t P r o m o t i o A g e c y (KOTRA), Mumbai ad Mr. Hemat Aggarwal, S e i o r M a a g e r (KOTRA) Ms Charlotte Gallogly, Board Director, World Trade Ceters Associatio, New York ad Presidet, World Trade Ceter Miami Pael Discussios Bradig: Embracig the e-tailig Era Implicatios of the Uio Budget Guest of Hoour, Mr. Ravider Saroop, IRS, Commissioer of Cetral Excise ad Service Tax, Large Taxpayer Uit Mumbai Sustaiability through Social Etrepreeurship Water Matters : Water For All - WTC ad Maharashtra Water Resources Regulatory Authority MOU Sigig Mr. Rizaur Meral, Presidet, The Cofederatio of Busiessme ad Idustrialists of Turkiye ON TRADE Jauary - March

44 HAPPENINGS... Chamber of Commerce of the Grad Duchy of Luxembourg H. E. Mr. Etiee Scheider, Deputy Prime Miister ad Miister of the Ecoomy of the Grad Duchy of Luxembourg, with High Level Busiess delegatio Idia Busiess Chamber Luxembourg (IBCL) Cofereces Saturday Club Maharashtra Electricity Regulatory Commissio Security Watch Idia (Water maagemet for smart cities) M e g h a d D e s a i Academy of Ecoomics Commecemet Post Graduate Diploma i Foreig Trade Batch 54 Certificate Course i Small Busiess Startups New Course Iauguratio Rashtriya Uchchatar Shiksha Abhiya office - Chief Guest, Shri Viod Tawde, Hoourable Miister of School Educatio, Sports ad Youth Welfare, Higher ad Techical Educatio, Medical Educatio, Marathi Bhasha, Cultural Affairs, Govermet of Maharashtra Iteratioal Wome s Day- Celebratio C h i e f G u e s t S m t. Pakaja G. Mude, Hoourable Miister - Rural Developmet ad Water Coservatio, Employmet Guaratee Scheme, Wome ad Child Developmet, Govermet of Maharashtra The Lauch A N Y T H I N G B U T K H A M O S H, S h a t r u g h a S i h a B i o g r a p h y b y M s. Bharathi S Pradha, C h i e f G u e s t, S h r i Amitabh Bachcha ad Guest of Hoour Shri Yashwat Siha ad Ms. Soakshi Siha A Talk WTC ad Way Forward -Ms Charlotte Gallogly, Board Director, World Trade Ceters Associatio, New York ad Presidet, World Trade Ceter Miami Oe Day Semiar Iteratioal Trade ad Export Promotio at MIDC Semiar Hall i Naded Visits S m t. S u s h m a S w a r a j, Hoourable Miister of E x t e r a l A f f a i r s, G o v e r m e t o f I d i a Baker s Scholars Busiess Studet Delegatio of Hope College, Michiga, USA Maagemet Studets from G. R. Damodara Academy Of Maagemet, Coimbatore Group Discussio/Iterviews Idia Istitute of Foreig Trade- Delhi Studet Programme Sydeham Istitute of Maagemet Studies Software Lauch Skillsdox Idia Pvt. Ltd. Field Trips- Foreig trade, Logistics ad Export- Import WTI Studets P u j a b C o w a r e C o t a i e r F r e i g h t Statio, Droagiri Jawaharlal Nehru Port Trust (JNPT), Ura Promas Egieer Pvt. Ltd., Maufacturig Uit at Rabale 44 ON TRADE Jauary - March 2016

45 Trade Promotioal Activities Held This Quarter: Bhubaeswar WTC Bhubaeswar Participates at Odisha MSME Trade Fair 2016 TC Bhubaeswar participated i the aually held W Odisha MSME Trade Fair which was joitly orgaized by Directorate of Export Promotio & Marketig (DEP&M), Directorate of Idustries ad Odisha Small Idustries Corporatio Ltd. (OSIC) ad supported by All Idustries Associatios of the State uder the Departmet of Micro, Small ad Medium Eterprises (MSME), Govermet of Odisha from Jauary 8-14, 2016 at the IDCO Exhibitio Grouds i Bhubaeswar. The objective of the Trade Fair is to provide a eablig platform to MSMEs to explore ew markets ad expose them to techological advacemets. The Fair was iaugurated by Mr. Navee Pataik, Hoourable Chief Miister of Odisha o Jauary 8, Semiars o topics such as food processig, tourism, vedor developmets, cluster developmets, credit flow ad export promotio were coducted alog with the Trade Fair Buyer s Sellers Meet (B2Bs ad B2Cs) havig ivestors from both Odisha ad outside the state from various sectors such as food processig, plat ad machiery suppliers, techology ad service providers etc, withi the SME, who were part of the Fair. Participats at the Fair icluded corporates, cetral ad state govermet departmets ad PSUs, large ad mega idustries, service providers, baks, fiacial istitutios, educatioal traiig istitutios, etc. More tha 300 exhibitors represetig sectors such as egieerig ad metal based; drugs ad chemicals; plastic ad polymers; agro based ad food processig idustries; iformatio techologies / ITES / ESDM; textile ad readymade garmets; hadloom ad Visitors iteractig with WTC Bhubaeswar Team durig the Fair hadicrafts; trasport ad tourism ad packagig participated i the Fair. WTC Bhubaeswar showcased its services by settig up a booth at the evet. O a average busiess visitors iteracted with the officials at the exhibitio stall o a daily basis. WTC Bhubaeswar provided export guidace at the booth ad may elicited iterest i associatig with WTC Bhubaeswar to ehace their busiess iterest. As part of the Fair, WTC orgaized a workshop o the topic Strategy for Augmetatio of Exports from Odisha o Jauary 12, Workshop o Strategy for Augmetatio of Exports from Odisha A workshop o Strategy for Augmetatio of Exports from Odisha, was orgaised i associatio with the Directorate of Export Promotio ad Marketig, Govermet of Odisha o Jauary 12, 2016 as part of the Odisha MSME Trade Fair 2016, with a objective to ecourage etrepreeurs of the State. The Workshop focused o uderstadig the strategy for gettig ito Iteratioal trade ad busiess ad to build sustaiable ad profitable busiesses. Professor Aru Sehgal, a expert i iteratioal marketig ad a facilitator of the workshop, highlighted the expectatios of iteratioal market players ad how oe should go about explorig such markets. He also spoke about the techical as well as attitudial requisites oe should take care while dealig with foreig cliets who would i tur help their busiesses to flourish i global markets. He highlighted the market strategies for potetial sectors of the State like tourism, marie, IT, chemicals, pharmaceuticals ad hadicrafts. Mr. Fakir Moha Nayak, Additioal Secretary, Departmet of Micro Small ad Medium, Eterprises, Govermet of Odisha, highlighted the stregth of MSMEs i the State. He said that there are about 1.5 millio MSME uits i the State providig jobs to about 3.3 millio people ad Odisha raks amog the top te states i terms of providig employmet. For the growth of the sector, the State govermet has bee orgaizig trade fair, uder the baer of Odisha MSME Trade fair for the last four years, brigig all agecies cocered with MSMEs uder oe roof. He also metioed that ew MSME developmet ad export policies were aouced by the State which aim to brig about a vibrat growth for the sector. Mr. Ramesh Mahapatra, Presidet, Utkal Chamber of Commerce & Idustry ad Mr. N. Palai, Director of Idustries ON TRADE Jauary - March

46 were also preset o the occasio to share their perspectives o the export sceario of the State durig the iaugural sessio. Mr. B. K. Das, Director, Directorate of Export Promotio ad Marketig (DEP&M), Govermet of Odisha i his remarks explaied the export orieted iitiatives of DEP&M to assist the MSMEs i the State. Mr. L. N. Sahu, Maager, Export Credit Guaratee, Corporatio of Idia ad Mr. K. K. Sahoo from the Federatio of Idia Exporters also made their deliberatios o various istitutioal support systems available for exporters beefits as part of the techical sessio. Mr. Aru Sehgal makig a presetatio. See o the dais (L-R): Mr. Diwedy, Deputy Director, DEPM, Mr. B. K. Das, Director, DEPM, Mr. F. M. Nayak, Additioal Secretary, Departmet of MSME, Govermet of Odisha, Mr. N. Palai, Director of Idustries, Mr. A. O. Kuruvila, Advisor, WTC Mumbai ad Mr. Ramesh Mahapatra, Presidet, UCCI. WTC Mumbai Officials Meet Key Fuctioaries of Odisha Ateam from World Trade Cetre (WTC) Mumbai visited Bhubaeswar o Jauary 15, 2016, to discuss the sigig of a MoU with key officials of the State of Odisha for the World Trade Cetre project. The team was led by Capt. Somesh Batra, Vice Chairma, WTC Mumbai. The others o the team icluded Mr. Y. R. Warekar, Executive Director, WTC Mumbai, Ms. Rupa Naik, Director-Projects, WTC Mumbai, Ms. Khyati Naravae, Assistat Director-Trade Promotio, WTC Mumbai ad Ms. Sabha Naik, Assistat Director (Legal), WTC Mumbai. The team from Bhubaeswar icluded Ms. Nimeshika Nataraja, Maager-Trade Research, WTC Bhubaeswar ad Mr. Budhadev Bhajo, Maager-Trade Promotio. They met Mr. Sajeev Chopra, IAS, Pricipal Secretary, Departmet of Idustries-cum-Chairma, Ifrastructure Developmet Corporatio of Odisha (IDCO), Mr. Sajay Kumar Sigh, IAS, Maagig Director, IDCO ad Dr. Krisha Kumar, IAS, Vice Chairma, Bhubaeswar Developmet Authority at Departmet of Idustries, State Secretariat, Govermet of Odisha, Bhubaeswar to discuss the upcomig World Trade Cetre project i Bhubaeswar. The team subsequetly met Mr. Aditya Padhi, IAS, Chief Secretary, Govermet of Odisha to apprise him of the trade promotioal activities udertake by World Trade Cetre Bhubaeswar sice its iauguratio o July 8, Mr. Padhi lauded the efforts of the Cetre ad affirmed all support to future activities. From (L-R): Ms. Khyati Naravae, Assistat Director-Trade Promotio, WTC Mumbai, Dr. Krisha Kumar, IAS, Vice Chairma, BDA; Mr. Sajay Sigh, IAS, Maagig Director, IDCO; Mr. Sajeev Chopra, IAS, Pricipal Secretary, Idustries, Govermet of Odisha ad Chairma IDCO, Capt. Somesh Batra, Vice Chairma, WTC Mumbai, Ms. Rupa Naik, Director- Projects, WTC Mumbai, Mr. Y. R. Warerkar, Executive Director, WTC Mumbai ad Ms. Sabha Naik, Assistat Director (Legal), WTC Mumbai. Further, the team also held discussios with Mr. Gaga Kumar Dhal, IAS, Pricipal Secretary, Departmet of MSME, Govermet of Odisha o the future ageda of the Cetre i promotig iteratioal trade for MSMEs, thereby ehacig the export activities i the State. 46 ON TRADE Jauary - March 2016

47 Semiar o E-tailig for MSMEs to Go Global E-tailig is a fast emergig cocept used for reachig out to global markets with much more ease. Recet years have see a remarkable trasformatio i the way people shop ad trade said Mr. B. B. Behera, Additioal Secretary, Departmet of MSMEs, Govermet of Odisha at the semiar o E-tailig orgaized by World Trade Cetre Bhubaeswar i associatio with the Directorate of Export Promotio ad Marketig, Departmet of MSMEs, Govermet of Odisha o February 10, Emphasisig o the growig importace of the e-commerce sector he compared the outreach ad techical kow-how of various etrepreeurs from other states to that of the etrepreeurs of the State of Odisha, whe placed together o a iteratioal platform. He advocated that a etrepreeur i order to ru a sustaiable busiess has to keep pace with chagig times. Mr. Naya Bheda, a etrepreeur ad fouder of Idia School of ebusiess (ISeB), Mumbai made a presetatio o e-commerce while also showcasig its importace i the curret competitive era. He explaied various busiess models oe could look at for beig a part of e-tailig. Deliberatig o the chagig patters of coductig busiess, he motivated etrepreeurs to explore various e-busiess platforms such as amazo, sapdeal, e-bay etc. which are already i place with the required techological platform ad other support mechaisms. While referrig to various success stories of e- tailig busiesses, he showcased how e-commerce effectively facilitates busiesses to reach out to the right customers beyod the boudaries of the territories with much more ease. Ms. Nimeshika Nataraja, Maager-Trade Research, World Trade Cetre Bhubaeswar i her address while deliberatig o the curret global sceario o e-tailig highlighted how the World Trade Cetre is promotig its members o various olie ad digital platforms helpig them to reach out to the global markets. From (L-R): Mr. Naya Bheda, a etrepreeur ad fouder of Idia School of ebusiess (ISeB), Mumbai iteractig with the participats. Mr. B. K. Das, Director, Directorate of Export Promotio & Marketig, Govermet of Odisha took the opportuity to express his views o the growth of MSMEs ad exports from the State ad also highlighted various iitiatives take by the Directorate i facilitatig etrepreeurs i export busiess. Pael Discussio o Uio Budget orld Trade Cetre (WTC) Bhubaeswar ad Xavier WIstitute of Maagemet, Bhubaeswar (XIMB) preseted a pael discussio o the Implicatios of the Uio Budget o Direct ad Idirect Taxatio o March 2, 2016, at the XIMB Auditorium, Bhubaeswar. The paelists icluded emiet experts amely, Mr. Prashath Hota, Executive Vice Presidet, Jidal Steel & Power Ltd., Chartered Accoutat Mr. A. K. Sabat, Parter, A.K. Sabat & Co., Chartered Accoutat Mr. Rajiv Sahoo, Promoter, M/s SRB & Associates ad Professor D. V. Ramaa, Faculty, XIMB-XUB alog with Mr. Dilip Satapathy, Editor, Busiess Stadard who was the moderator at the discussio. Mr. Dilip Satapathy opeed the floor for discussio ad raised relevat questios throughout the eveig such as Would the desire of the Govermet to achieve 7.6% growth rate have bee achieved if the moey had bee routed to the middle class rather tha the poor? Followig which Professor D. V. Ramaathe preseted his views o the budget i his address emphasisig that the risig problem of iequality should be the immediate poit of cocer. Taxatio is a importat ecoomic ad fiscal tool to address iequality, he said, addig that Iequality cotiues at the cost of maitaiig fiscal deficit because at the macro level, we have ot addressed the issues that make iequality persist. Mr. Prashat Hota while addressig the audiece said that desigig a budget is ot a easy task. He opied that the real issue is that of growth i demad. He deliberated that uless the issues of rural populatio, which costitutes 60% of the total populatio, is addressed, demad would ot go up. He metioed that while demad is decliig i other coutries, i Idia, it has icreased by aroud 4-5%. He also added Corporate sector caot survive without the robust rural sector. Therefore, he advocated that the Uio Budget has addressed the right issues. Commetig o the high ON TRADE Jauary - March

48 ivestmets i roads, he said, A good road is the aswer to aythig as it facilitates developmet of the ecoomy. Mr. Sahoo agreed with Mr. Prashat Hota ad added that, The bakig sector is a major catalyst i the system. He also wared that if the atio goes o taxig the rich, they will move to places where they fid more beefits, but they are the oes who provide employmet. I this regard, he said that the startup culture is a step i the right directio. He also deliberated that there are leakages at every step, but with the right goverace ad techology, they ca be arrested. Mr. Sabat preseted his views by agreeig to leakages i the system, ad preseted a proverb Black moey is like a cobra i your house. Havig thoroughly aalysed the budget, he advocated that the allowaces are ot sufficiet to cover expeses, hece raisig the questio as to where does the extra tax moey go. The salaried people are at a disadvatage as a result of the Budget. I additio to this burde, salaried class also have to face iflatio which is taxatio without icome, he added. From (L-R): CA Rajiv Sahoo, Professor D.V. Ramaa, Mr. Dilip Satapathy, CA A.K. Sabat ad Mr. Prashat Hota. Networkig Meet with Cosul Geeral of the Republic of Sigapore orld Trade Cetre (WTC) Bhubaeswar orgaized Wa high level etworkig meet for Mr. Ajit Sigh, the Cosul Geeral of the Republic of Sigapore i Mumbai ad his team who visited Bhubaeswar o March 2, The meetig was part of a three-day visit to the State. The etworkig meet provided a opportuity for some of the represetatives of the idustries i the State to have a iteractio with Mr. Sigh about Doig Busiess i Odisha ad the idustrial ecosystem existig i the State across sectors. The meetig was atteded by Mr. Tapa Mohaty, Maagig Director, Z-Estates, Mr. Prashat Hota, Executive Vice Presidet, Jidal Steel & Power Ltd, Mr. Mahedra Gupta, Maagig Director, Gupta Power Pvt. Ltd. ad Mr. Basat Patel, Associate Vice Presidet, Adai Group. Durig the discussio, Mr. Sigh was surprised by the competitive advatage of the State of Odisha as compared to other states of Idia ad was coviced that Odisha was oe of the best destiatios for ivestmets i the maufacturig sector. He further had a discussio with the team of World Trade Cetre Bhubaeswar about the activities beig carried out. Mr. Sigh met the Chief Miister of Odisha Mr. Navee Pataik followed by a series of meetigs with other high level govermet officials pertaiig to Smart City ad Housig & Urba Developmet. From (L-R): Ms. Nimeshika Nataraja, Maager-Trade Research, WTC Bhubaeswar, Mr. Md Syfulizar, Coutry officer, Australia, New Zealad & the Pacific Directorate, Miistry of Foreig Affairs Sigapore, Mr. Ajit Sigh, Cosul Geeral, Cosulate of the Republic of Sigapore, Mumbai ad Mr. Budhadev Bhajo, Maager-Trade Promotio, WTC Bhubaeswar. 48 ON TRADE Jauary - March 2016

49 WTC Bhubaeswar Celebrates Iteratioal Wome s Day ON TRADE orld Trade Cetre (WTC) Bhubaeswar celebrated WIteratioal Wome s Day o March 8, 2016 by presetig Udaa - a exhibitio exclusively by wome etrepreeurs from the State of Odisha. The exhibitio showcased a variety of MSME products ragig from hadicrafts, hadloom, spices, processed food, tourism to home décor. The oe-day exhibitio attracted more tha 250 foot falls from visitors icludig members of WTC Bhubaeswar, govermet officials, geeral public as well as other etrepreeurs. The exhibitors were ethused ad lauded for their iitiatives ad the exhibitio geerated busiess leads for their products ad services. The exhibitio provided the mucheeded platform for boostig ad ecouragig wome etrepreeurs i their edeavours. A view of the exhibitio with stalls set up by the wome etrepreeurs A Warm Welcome to Our Meet New Members Orgaisatio: KALINGA EXPORTS Cotact Perso: MR. SHAKTI PRASAD MISHRA Desigatio: PROPRIETOR Kaliga Exports maufactures ad exports ethic odisha hadlooms ad hadicrafts. They also deal with electroic waste maagemet for corporate ad carries out the process of ivetorizatio. Orgaisatio: TRUEOMEN INC. Cotact Perso: MR. SABYASACHI SATPATHY Desigatio: SOLE PROPRIETOR maufactures ad trades i lifestyle products, home décor, etc. Orgaisatio: EASTERN TREASURE INDIA TOURS & PVT. LTD. Cotact Perso: MR. SANGHAMITRA JENA Desigatio: FOUNDER DIRECTOR Easter Treasure Idia Tours & Pvt. Ltd. desigs tour programs all over Idia. The Compay rus two commuity / village camps i Odisha ad offers the best village / ecofriedly experiece to guests / visitors. Trueome Ic. is a sole proprietorship compay. The firm ON TRADE Jauary - March

50 Trade Promotioal Activities Held This Quarter: Goa Workshop for Etrepreeurs, Youth ad Wome Startups Aspirig Etrepreeurs Workshop was orgaised o February 5, 2016 at the Goa Chamber of Commerce (GCCI) to create awareess about the recetly lauched Start-Up Idia project by Prime Miister Naredra Modi. This workshop was held uder the auspices of World Trade Cetre (Goa), GCCI - Wome s Wig, Goa Etrepreeurs Metorig Services (GEMS) ad I-Create (I). Mr. Maguirish Pai Raiker, MSME Board Member, Govermet of Idia was ivited as the Chief Guest for the fuctio. Mr. Raiker said that youth of Idia is filled with exuberace ad iovative ideas r e g a r d i g e t r e p r e e u r s h i p, however, they face a huge challege to implemet these ideas. To create a favourable eviromet for buddig start ups ad attract the youg from job searchig to job creatio, Govermet of Idia has lauched the Start Up Idia, Stad Up Idia Campaig. He elisted a few beefits of the scheme like icome tax holiday, lower compliace requiremets, etc. Mr. S. R. Chadra Murthy, Maager, Small Idustries Developmet Bak of Idia, Goa elaborated o the various fiacial schemes for promotig Start-up Idia ad special schemes for wome, formulated by SIDBI ad MUDRA bak respectively. Mr. Maish Gosalia, Regioal Coordiator for I-Create (I) - Goa spoke about the importace of developmet of etrepreeurs through focused ad cocise etrepreeurial traiig. He also discussed the importat aspects of Start-up Idia iitiative by the Govermet of Idia. He shared iformatio o various orgaisatios that cotribute to the growth of self-susteace by startig oe s ow busiess, especially for wome lackig fiacial support from society. Mr. Rya Carvalho, Chief Techology Officer, Remote Software Solutios promoted EDC s Techology Start Up competitio ad spoke about the iformatio t e c h o l o g y ( I T ) a d opportuities available to b e i c o r p o r a t e d i various busiess models. "Various Advacemets i the field of IT like virtual based cloud computig has resulted i hardware redudacy, thus reducig capital expediture ad makig p r o j e c t s m o r e c o s t effective", said Mr. Carvalho. Advocate Ms. S h a l i i M e e z e s, a reputed corporate lawyer shared her expertise i the Itellectual Property Domai ad Mr. D. S. Prashat, Geeral Maager, Cetre of Icubatio & Busiess Acceleratio (CIBA) spoke about the availability of IT icubatio cetres i Goa. Ms. Meezes educated the audiece o various details to be icorporated i the cotractual agreemets which eed to be take care while iitiatig a legal icorporatio procedure. Mr. Prashat guided those with o IT backgroud ad said that IT icubatio cetres provide all the ecessary support. Dr. Jeifer Lewis e Kamat, Chairperso, GCCI, Womes Wig ad Mr. Rajkumar Kamat, Presidet of GEMS, addressed the audiece ad complimeted the orgaisers. From (L-R): Ms. Ambika Dhakhekar, Assistat Maager-Trade Promotio & Research, WTC Goa, Mr. Rajkumar Kamat, Presidet, Goa Etrepreeurs Metorig Services, Mr. Maguirish Pai Raiker, MSME Board Member, Govermet of Idia, Dr. Jeifer Lewis e Kamat, Chairperso, GCCI, Womes Wig ad Mr. Maish Gosalia, Regioal Coordiator for I- Create (I). Iteratioal Busiess Opportuities Workshop with Asia Developmet Bak TC Goa i associatio with Goa Chamber of WCommerce & Idustry orgaised a workshop o Iteratioal Busiess Opportuities with Asia Developmet Bak (ADB) o February 12, Goa MSMEs from various sectors such as pharmaceuticals, miig ad automobile atteded the evet. Mr. Hiroyuki Maruyama, Procuremet Specialist, Asia Developmet Bak metioed that Idia is the fourth largest shareholder of ADB. He stated that Idia s curret borrowig is for 85 loas valuig aroud $11,413.2 millio ad the ew loas approved for 2015 are valued at $420 millio. The loas are disbursed to various idustrial sectors, out of 85 loas more 50 ON TRADE Jauary - March 2016

51 tha 25% is provided to the urba ad eergy sectors ad the rest is to other sectors like trasport, agriculture ad educatio. He also elaborated o the procuremet guidelies ad shortlistig procedure for MSMEs, associates, sub-cotractors ad joit vetures. Goa maufacturig sectors icludig pharmaceutical, miig, tourism ad cosultig services i the fiacial domais must access ADB's wealth of opportuities ecouraged Maruyama. Mr. Maguirish Pai Raiker, Advisor, WTC Goa metioed that the Goa MSME idustry eeds to take advatage of all available opportuities i the market. "ADB ad Uited Natios Procuremet Divisio are some of them", he said. Ms Ambika Dhakhekar, Assistat Maager, WTC Goa preseted the welcome address by itroducig WTC Goa ad its activities to the participats. "WTC Goa's jourey so far has bee very successful ad received a very good respose from local as well as eighborig regios of Goa", she added. From (L-R): Ms Ambika Dhakhekar, Assistat Maager, WTC Goa, Mr. Hiroyuki Maruyama, Procuremet Specialist, Asia Developmet Bak, Mr. Maguirish Pai Raiker, Advisor, WTC Goa ad Mr. R. S. Kamat, Director Geeral, GCCI. WTC Goa Observes Iteratioal Mother Laguage Day atioal Istitute of Oceaography Staff Club ad NGaga Zuari Academy celebrated Iteratioal Mother Laguage Day o February 21, WTC Goa supported the evet which attracted a large umber of people who displayed sicere dedicatio towards their mother togue. Iteratioal Mother Laguage Day is beig observed sice 2000 to promote peace ad multiligualism. The date correspods to the day i 1952 whe studets from the Uiversity of Dhaka, Jagaath Uiversity ad Dhaka Medical College, called for the recogitio of Begali as oe of the two atioal laguages of the East Pakista. History has it that they were shot dead by police ear the Dhaka High Court i the capital of preset-day Bagladesh. Thereafter, Iteratioal Mother Laguage Day was proclaimed by the Geeral Coferece of the Uited Natios Educatioal, Scietific ad Cultural Orgaizatio (UNESCO) i November Hoourable Goveror Ms. Mridula Siha, Govermet of Goa was ivited as the Chief Guest. "The usage of our mother laguage must be promoted i order to build a rich cultural heritage of our atio", she stated. Mr. Naqvi, S.W.A., Director, NIO was ivited as the Guest of Hoor. Emiet Speakers were Mr. Maguirish Pai Raiker, Advisor, WTC Goa, Professor Mr. Vishwaatha, Goa Uiversity, Professor Ms. Rupali, Ecoomics Departmet, Chowgule College, Professor Mr. Sakhardade from Dhempe College ad Professor Mr. Salim from Dhaka Uiversity. Mr. Maguirish Pai Raiker, Advisor, WTC Goa lightig the lamp. I the backgroud from (L-R): Mr. Naqvi, S.W.A., Director, NIO, Hoourable Ms. Mridula Siha, Goveror of Goa, Professor Mr. Sakhardade, Dhempe College ad Professor Ms. Rupali, Chowgule College. Mr. Maguirish Pai Raiker, Advisor, WTC Goa highlighted the importace of the mother togue usage i society. "Commuicatio is a importat pillar for uiversal growth ad developmet ad hece we must stregthe our hold o the local laguage", he said. Mr. Raiker also emphasized o the eed for the ew geeratio to be well versed with the mother togue which will esure a better bodig withi the local commuity ad safeguard the cultural heritage from fadig away. ON TRADE Jauary - March

52 Pael Discussio o Impact of Budget WTC Goa i associatio with The Iteratioal Cetre of Goa (ICG), Wester Idia Regioal Coucil of the Istitute of Chartered Accoutats of Idia ad Goa Chamber of Commerce & Idustry (GCCI) orgaized a pael discussio o Impact of Cetral Budget 2016 o Direct ad Idirect Taxes. The program was atteded by more tha 100 icludig the commerce & ecoomics studets of Goa. Mr. Maguirish Pai Raiker, Chairma, Natioal Coucil of SMEs/ASSOCHAM, ad Advisor, WTC Goa was ivited as the chairperso. CA Sadeep Bhadare, Vice Presidet, GCCI ad CA Parimal Kulkari, Past Secretary Wester Idia Regioal Coucil (WIRC) of The Istitute of Chartered Accoutats of Idia (ICAI) were speakers for the eveig. Mr. Kedar Kekre, WIRC ad Mr. Arju Halarkar, Program Maager, ICG were also preset. From (L-R): Mr Maguirish Pai Raiker, Advisor, WTC Goa, CA Sadeep Bhadare, Vice Presidet, GCCI ad CA Parimal Kulkari, Past Secretary WIRC of the ICAI ad Mr Kedar Kekre, WIRC. Mr. Magurish P. Raiker iitiated the discussio commetig that the Budget is supposed to be collective report represetig all the sectors of the idustry like educatio, agriculture, maufacturig, services etc. The core focus of every idividual is o persoal beefits from the budget, which actually should have bee the overall beefit to the coutry. Hece there is a eed to chage the perceptio before embarkig o the whole process of budget assessmet, he opied. Raiker stated that the Budget 2016 is fiscally prudet, socially redistributive ad icorporates every segmet right from the soil to the ultimate level of employmet geeratio i the atio. Oe basic ecessity, that is commo betwee every huma beig irrespective of the caste, social status, place of origi etc. is 'strivig to feed oeself or at the most his/her ow family'. Therefore, this fact makes agriculture ad the allied sectors the prime cocer ad explais, why the issues of Idia farmers eed to be dealt with immediate effect. Thikig o these lies Fiace Miister Mr. Aru Jaitley has prepared the budget based o the farmers iputs ad made provisios for the log-term beefits to them, he acclaimed. Apart from this, the budget aims at fiscal deficit of 3.5% of GDP, which focuses o lowerig of rates, rural cosumptio, revival of public sector ivestmets ad boost to employmet geeratio with iitiatives such as Make i Idia. CA Sadeep Bhadare provided i-depth budget aalysis coverig various pros ad cos related to every poit. The budget aims to maitai Fiscal Resposibility ad Budget Maagemet (FRBM) target while he highlighted that there are certai udetermied factors like the aoucemet of Oe Rak Oe Pesio (OROP) i the defese idustry, basic pay th of 7 pay commissio, spedig o the rail or road ifrastructure projects ad bulk recapitalizatio, which could be see as a ecumbrace i the process. However the provisios for the housig sector ad loa beefits, will provide a tremedous boost to the housig idustry, he metioed. CA Parimal Kulkari explaied the various aspects of Idirect Taxatio i the form of GST. The tax structure is desiged exclusively for various socio-ecoomic strata of Idia such as the busiessma, govermet employee, politicia ad workig class commo ma. Istead, what is required is a holistic approach of viewig the tax burde which should distributed equally i every sector, urged Mr. Kulkari. He added that GST is the eed of the hour ad service taxes will help curb the deficits. WTC Goa Celebrates Iteratioal Wome s Day TC Goa celebrated Iteratioal Wome's Day W2016 at WTC Goa o March 8, Ms. Varsha M. Pai Raiker ad Ms. Shobha Tarcar, two reowed wome etrepreeurs of Goa from both productbased ad service idustry, were felicitated o the occasio. Ms. Raiker spoke o this year's Wome's Day theme, which is Plaet by 2030: Step It Up for Geder Equality, that all wome should stad up for themselves. She represets S. R. Eterprises located i Corlim Idustrial Estate ad has received the prestigious atioal award for MSME of the year i 1994 for the product - corrugated boxes. Whe asked about the differece betwee the preset ad the time she started the jourey, she said, Everyday throws up a differet challege ad chage is costat. Oe has to be prepared to adapt to chagig scearios to survive. Hard work, adaptability to chage, patiece, fiacial disciplie ad good public relatios are the 5 key elemets to success, she isiuated. 52 ON TRADE Jauary - March 2016

53 Ms Shobha Tarcar, Ower of the Sai Samarth Caterers, a reowed caterig service i the city of Pajim, is rightly kow as Aapura (The Goddess of Nourishmet) i her close frieds circle. More tha 20 years i the busiess, startig from 50 people she, has oce served aroud 2500 people at a time. Customer delight ad quality assurace are the uique sellig poits of her busiess. There is always a persoal touch whe selectig the vegetables, meat, other grocery items persoally ad I also add spices which add to the origial flavors of the dishes, she revealed. "No compromise o quality of raw supplies ad protectig trade secrets, are the two most importat thigs to this busiess", she added. Ms. Supriya Rae, Director, La Cabaa Beach & Spa metioed that, "Geder From (L-R): Ms Cheryl Ferades, Officer-Trade Promotio ad Research WTC Goa, Ms. Varsha M. Pai Raiker, Ower, S. R. Eterprise Pvt. Ltd ad Ms Ambika Dhakhekar, Assistat Maager, WTC Goa. iequality is globally evidet ad lot of wome are ow edorsig geder parity at workplace". I order to move closer to geder equality awareess, freedom, educatio ad legislative chages are eeded to be eforced. Campaigs like Beti Bachao, Beti Padhao, Small ivestmet fudig scheme to support wome etrepreeur, ca build self cofidece ad help geder parity", cited Ms. Rae. Ms Ambika Dhakhekar, Assistat Maager, WTC Goa metioed that, "We always wat me to thik wome are equal to them ad seek their acceptace to the fact, that we are capable i every aspect as they are. However, the history of all times, especially, i the curret cotext teaches that wome will be forgotte if they forget to thik about themselves." Belgium Kee to Boost Trade Ties with Goa Belgium delegatio visited WTC Goa comprisig APeter Huyghebaert, Cosul Geeral of Belgium ad Ms Emmauelle Timmermas, Trade & Ivestmet Commissioer, Cosulate Geeral of Belgium AWEX Mumbai. Ms Ambika Dhakhekar, Assistat Maager, WTC Goa ad Mr. Maguirish Pai Raiker, Advisor, WTC Goa greeted the officials. The ageda of the meetig was to address various ways to boost ecoomic ties with Goa. Mr. Huyghebaert expressed kee iterest i developig bilateral trade relatios revolvig aroud prime sectors like waste maagemet, tourism ad food processig. He specifically emphasized o takig up projects such as river dredgig of ilad waters, makig rivers avigable ad improvig the iboud / outboud logistics. He also ecouraged WTC Goa members, to visit ad explore Atwerp Port i Belgium. Ms. Timmermas embarked upo the formulatio of joit vetures with the tourism idustry to address the growig demads of private charters, which are curretly o-existig, betwee Goa ad Belgium. She also acquaited herself, with the Goa food processig idustry ad metioed that, it is also oe of the areas of iterest for prime ivestors. Mr. Raiker spoke about the Goa history ad log-lastig cultural ties with Europe, for almost half a milleium sice the Portuguese, etry to the mailad i their quest for establishig wester trade. Goa is oe of the leadig exporter of cashew uts ad marie caed products, he highlighted. He also metioed the State's growig potetial to export flowers such as orchids to Belgium, which is a importer of various From (L-R): Ms Emmauelle Timmermas, Trade & Ivestmet Commissioer, Cosulate Geeral of Belgium AWEX Mumbai, Mr. Maguirish Pai Raiker, Advisor, WTC Goa, H.E. Peter Huyghebaert, Cosul Geeral of Belgium ad Ms Ambika Dhakhekar, Assistat Maager, WTC Goa. floral species from Africa ad other coutries. Ms. Dhakhekar familiarized the delegates with the fact that, oe of the well kow, Goa Maagemet Istitute is already parterig with the Uiversity of Atwerp, Belgium to coduct joit foreig (faculty ad studet) exchage programs i maagemet. The Joit Iteratioal Itership Semiar ON TRADE Jauary - March

54 (JIIS), is also held every year with the studets of both istitutes workig together o live projects i Goa orgaizatios, she added. Additioally, Dhakhekar asserted to work collectively with the Cosulate Geeral of Belgium AWEX Mumbai, i order to beefit its members ad the Goa busiess commuity, to foster trade ad ivestmets i the state. Semiar o Leadership for Balaced Growth TC Goa participated at the Semiar o Leadership for Balaced Growth Wby Ms Pooam Barua, Fouder & Chairma of Forum for Wome i Leadership ad CEO, WILL Forum Idia, orgaised by the Goa Chamber of Commerce & Idustry - Womes Wig i Paaji, Goa. From (L-R): Ms Ambika Dhakhekar, Assistat Maager-Trade Promotio & Research, WTC Goa ad Ms. Pooam Barua, Fouder & Chairma of Forum for Wome i Leadership ad CEO, WILL Forum Idia. The talk emphasized o the eed for wome represetatio o orgaisatioal boards, i order to add diversity ad esure holistic approach towards decisiomakig process. "Wome i the leadership positios have to pave their way to success through a uequal ecosystem, which is widely evidet i our corporate world with oly 5% wome curretly omiated as board members i Idia", emphasized Mr. Barua. The speaker also coveyed the message that corporate Idia eeds to provide equal opportuities ad promote wome especially, those belogig to the higher employmet strata. A Warm Welcome to Our New Members Orgaisatio: AIRSONIC TRAVELS PVT. LTD. Cotact Perso: MR. PRAMOD RANE Desigatio: CHAIRMAN & MANAGING DIRECTOR Airsoic Travels Pvt. Ltd. is a travel maagemet compay. The orgaizatio provides customers with specialized ad iovative holiday solutios. They also have several diverse busiess verticals icludig resorts ad real estate. Orgaisatio: OSCAR LEAL GARCIA Cotact Perso: MR. OSCAR LEAL GARCIA Desigatio: OWNER Mr. Oscar Leal Garcia is a etrepreeur for heritage tourism. As a exporter of spices ad uts, the compay is kee to export orgaic turmeric ad spices. Orgaisatio: GOA ELECTRONICS LTD. Cotact Perso: MS. REVATI MUJUMDAR Desigatio: CHIEF EXECUTIVE OFFICER Goa Electroics Limited (GEL) has its focus o three critical areas i IT - busiess cosultatio, software solutio provider ad hardware supply ad maiteace. The firm s approach ivolves uderstadig customer eeds, buildig cocrete solutios ad supportig those solutios i the log term. Orgaisatio: PIONEER DISTRIBUTORS Cotact Perso: MR. RAJENDRA S. AMONKAR Desigatio: PARTNER Pioeer Distributors is a 38-year old firm which rus by professioally qualified people. They represet 40 Idia ad multiatioal compaies. The firm kee to export medical requisites, disposables, orthopaedic implats ad rehabilitatio aids. Orgaisatio: ALPRO METAL PVT. LTD. Cotact Perso: MR. DINESH GAJANAN KAMAT Desigatio: DIRECTOR Alpro Metal Pvt. Ltd. is a leadig maufacturer ad trader of alumiium products, upvc doors ad widows, structural glazig ad claddig. They also provide alumium fabricatio services. Orgaisatio: MENEZES DENTAL PRODUCTS (OPC) PVT. LTD. Cotact Perso: MR. NOEL MENEZES Desigatio: DIRECTOR Meezes Detal Products Pvt. Ltd. is a leadig maufacturer ad trader of tooth brushes ad marie products. The compay is kee to export. Orgaisatio: SHREE AUM ESTATE AGENCY Cotact Perso: MR. PRAKASH BANDEKAR Desigatio: PARTNER Shree Aum Estate Agecy deals with real estate, e- commerce, ifrastructure, lad survey ad cosultacy, ad is a authorised aget of Max Life Isurace ad Max Bhupa Health Isurace.

55 Iteratioal Visitor Leadership Program Regioal Ecoomic Coectivity: The NAFTA Experiece - A Report ON TRADE th its 76 year of existece, the U.S. Departmet of IState (DOS)-sposored Iteratioal Visitor Leadership Program (IVLP) omiated a group of five cadidates represetig the orth, south, east ad west regios of Idia through their respective US Missio, to participate i a sigle coutry program titled Regioal Ecoomic Coectivity: The NAFTA Experiece. Ms. Tripti Chakravorty, Assistat Director-Trade Research ad Iteratioal Trade Promotio, World Trade Cetre Mumbai was oe amog the represetatives from the wester regio who participated i the program. It was scheduled from February 1-19, 2016, however, participats were ivited two days prior to commecemet of the Program. The program threw up opportuities to discuss ad uderstad trade, busiess ad commerce of the North America Free Trade Agreemet (NAFTA), a tripartite agreemet siged by USA, Caada ad Mexico which came ito effect o Jauary 1, Additioally, it provided first-had experiece of America art ad culture as well as helped establish busiess relatioships betwee Idia ad USA. Also, the program preseted the chace to take back key fidigs ad learig draw from NAFTA ad dissemiate the same amog stakeholders, workig i the area of Asia s free trade agreemets at the local, regioal ad pa-idia levels i order to address challeges ad issues faced. To achieve this objective, the program was structured to iclude appoitmets with orgaisatios workig i govermet, semigovermet ad trade promotio orgaisatios to discuss ad deliberate o various aspects of U.S. trade policy, its costitutio ad impact o trade, busiess ad commerce. The meetigs ot oly icreased kowledge of particular issues of each city uder the NAFTA regime, but also helped do away with precoceived otios. I additio, it helped deepe uderstadig of the dyamic political, social ad ecoomic cotexts i which these issues existed. The program covered the creatio, developmet ad growth of NAFTA as a model for regioal coectivity ad itegratio amogst the sigatory atios. It also addressed NAFTA s impact o ecoomic developmet i the three coutries with issues pertaiig to market access, itellectual property rights, customs ad border, trade uioism, eviromet ad other trade-related areas. The program was structured i such a way that the participats had the chace to sped a couple of days i the followig five cities, each with a theme. ON TRADE Jauary - March

56 City: Washigto, D.C. Date: Jauary 30-February 4, 2016 Theme: Natioal Govermet Support for Iteratioal Commerce ad Natioal Perspectives o Regioal ad Iteratioal Trade Architecture Washigto, D.C. is the political seat of the US govermet. Followig are the meetigs that were held: Dr. Michael Siegel, Seior Educatio Specialist, The Federal Judicial Ceter. Key discussio poits: Dr. Siegel preseted a overview of the U.S. Federal Govermet Structure ad political process. Takeaways: The discussios led to deeper uderstadig ad clarificatio of the structure; the costitutio; separatio ad distributio of powers with Cogress, Seate ad the Presidet. The presetatio provided i-depth iformatio o the judicial system ad federalism of USA. Ms. Sarah Watso, Associate Fellow, Wadhwai Chair i U.S.-Idia Policy Studies, Ceter for Strategic & Iteratioal Studies. Key discussio poits: Ways to promote busiess ad ecoomic egagemet betwee Idia ad the Uited States. Takeaways: The discussios focused o ulockig the potetial of Idia-U.S. relatioship by pursuig policy chages, stregtheig bilateral relatios, acceleratig ecoomic developmet i Idia through Modi govermet s ew iitiatives. Ms. Sara Hagigh, Deputy Director, Office of North America, U.S. D e p a r t m e t o f C o m m e r c e, Iteratioal Trade Admiistratio (ITA) alog with her colleagues from the departmet. Key discussio poits: Govermet iitiatives o U.S. export promotio ad fiacig were discussed. Takeaways: Federal Ecoomic Ageda ad its workigs, icludig NAFTA s itegrative impact o supply chai, expaded exports ad o-tariff barriers which are doe away with. Presetatio also threw some light o departmet s promotio of trade adjustmets ad idustry advisory coucils alog with the efforts beig made towards trasparecy of govermet iitiatives which led to busiesses reapig advatages. Federal Advisory Committee provides o-goig advice to U.S. govermet o issues of re-educatio of export policy ad tariff tools. Ms. Marissa Smith, Idia Desk Officer, Bureau of South ad Cetral Asia Affairs, Departmet of State ad her colleagues Key discussio poits: U.S. Relatios with South ad Cetral Asia. Takeaways: The discussios provided a overview of U.S. foreig policy with Idia aalysis, objectives, iterests, egagemet ad regular cosultatios. Trackig Idia s FTAs with other coutries i the regio ad its impact o trade policy. Mr. Craig T. Clark, Director, Office of Iteratioal Trade, Textiles & Trade Agreemets, U.S. Departmet of Homelad Security. Key discussio poits: Trade Overview of Customs ad Border Protectio (CBP) priciples, processes ad procedures. Takeaways: A isight ito CBP s trade missio, visio, operatios, orgaisatioal chart, stakeholders, priority trade issues alog with ceters of excellece ad expertise, icludig automated commercial eviromet (ACE) which would be a sigle widow by ed It covered the importace of ecoomic competitiveess, besides ecoomic security eforcemet of trade laws required for Busiess-to- Govermet (B2G). Duties collected i textiles are by far the highest. The most iterestig fact beig that the office of iteratioal trade was established after 9/11 which executes 14 existig FTAs with 20 coutries from its curret 880 offices. Ms. Daw Shackleford, Deputy Assistat U.S. Trade Represetative (USTR) for Idia, Office of USTR. Key discussio poits: Provided historical developmet of U.S. Trade Policy ad egotiatios i South Cetral Asia regio. Takeaways: A overview of USTR s workig. The U.S.- Idia Trade Policy Forum 5 focus groups amely agriculture, iovatio ad creativity, ivestmet, services, tariffs ad o-tariff barriers were discussed. Release of the aual Special 301 Report ad Natioal Trade Estimate Report, both of which are proposed to be released by ed April City: New York Date: February 4-7, 2016 Theme: U.S. Trade Policy New York is the largest city i USA which was the secod stop o the itierary. Followig were the meetigs held: A iteractive meetig with a team of jouralists from Bloomberg News posed questios o Prime Miister Modi s iitiatives ad the possible impact o the ecoomy ad impact of Idia s rakig i the ease of doig busiess o foreig ivestmets. Issues pertaiig to immigratio o the curret US Presidetial electios were discussed. 56 ON TRADE Jauary - March 2016

57 Mr. Sherle Schweiger, Director, New America Foudatio, L. Schwartz Fellows Program. Key discussio poits: Impact of N A F TA o U S t r a d e p o l i c y, maufacturig facilities of mid-west U.S.; Chia ad Idia s role i world ecoomics; Tras-Pacific Partership (TPP). Takeaways: Poits discussed icluded Widsor Border (Caada) with USA which has the largest trade movemet, south-wester Otario (Caada) with USA has witessed positive effects ad Mexico has witessed lower wages ad stadard of livig. U.S. trade agreemet with Chia had a setback for the State of Michiga, trade adjustmets provided icreased fudig for the U.S. system especially i the areas of automobiles, furiture ad appliaces i Michiga. Chia has show sigs of movig up the competitive chai with a large cosumer market thereby balacig its ecoomy, also the growig presece of Chia i the South Chia Sea has affected USA iterests. The official felt that TPP is ot a serious trade agreemet dialogue, as it could result i beig a misguided iitiative. Vietam ad Bagladesh are set to be big wiers coverig major part of the Asia ecoomy. Idia has show cosistetly high levels of growth, while Chia has a geo-ecoomic strategy, questio is ca Idia have oe too? Some key learigs for agreemets like TPP as observed by Dr. Jagdish Bhagwati, oted ecoomist, is that NAFTA could have worked provided there was a political will to uderstad the depths i the agreemet. Moreover, NATO expasio provided a setback to NAFTA. Mr. Schweiger advocated that TPP would improve stadards of the large growig middle class ecoomy i Idia. A grace poit with Idia is - it is compatible with WTO ad WTO + trade rules accordig to the Washigto cosesus. USA's ecoomy is globalised ad ati-protectioist i ature ad corporate policy drives US Policy, to which policy ad agreemet drafters of the east must ote ad take advatage of the depths of such trade agreemets. He fially advocated that coutries have to reach out to atioal strategies ad ot subscribe to coutry groupigs throwig light o the eed for Idia to develop its states to reap beefits from its agreemets. Mr. Kil Dosajh, Director, Asia, Eurasia Group. Key discussio poits: Provided a comparative aalysis of NAFTA coutries ad Asia coutries i their FTAs. Takeaways: Fudametal differece is i the politics of the agreemets. Domestic markets have to be strog for a FTA to work. Reforms i idividual ecoomies are ecessary. Idia teds to have a protectioist attitude towards the agriculture sector. I the case of Chia, it reformed its agriculture sector ad the surplus was ploughed back ito the ecoomy. Policies like import substitutio failed i South Asia. Reforms i SAARC may ot help Idia directly but may help i buildig its trade routes for smoother access ad ease of peetratio i Asia withi the Pacific regio. TPP could push Idia to better reforms. Though NAFTA developed the Mexica ecoomy, Caada gaied i its fiacial sector leavig all three coutries to compete i the same space, success of NAFTA did ot rely o mere imports. Whereas i the SAARC regio all coutries are at the similar level of developmet, regulatory requiremets are poor ad import taxes serve as reveue to the govermet. Uless this midset chages, agreemets i SAARC may ot fulfill its scope ad objectives. This may affect the trade prospects of SAARC member coutries i the cotext of TPP. City: Sa Atoio, Texas Date: February 7-10, 2016 Theme: U.S.-Mexico Trade Relatios, NAFTA: The creatio of a Regioal Trade Agreemet & Effects of NAFTA o Agriculture ad the Rural Ecoomy Sa Atoio, Texas is a city kow to have a diversified ecoomy ad it is where the sigig of NAFTA took place. Followig were the meetigs that were held: Mr. Paco Felici, Vice Presidet, Commuicatio, Port Sa Atoio. Key discussio poits: Overview of Port Sa Atoio. Takeaways: I Mr. Felici s presetatio he highlighted the redevelopmet of Kelly Air Force Base as the Port is a vital parter to aerospace customers by providig specialised facilities. Idost MIM (Idia compay) is to lauch its 1 maufacturig operatios at the Port i 2016 thereby, creatig 300 ew jobs. The Port is home to advace maufacturig operatios i aerospace, automatio, equipmet repair, assembly ad testig. The Port is located at the heart of the NAFTA Corridor d ad Loredo-NAFTA highway is the 2 lad crossig for USA. Mr. Cliff Parades, Director, Iteratioal Trade Ceter, Small Busiess Developmet Ceter Network (SBDC), Uiversity of Texas at Sa Atoio-Istitute for Ecoomic Developmet. Key discussio poits: Programs beig offered by SBDC (a trade assistat orgaisatio). Takeaways: SBDC is the Largest etwork i the U.S. caterig to maufacturers ad traders ad assists i capacity buildig ad export promotio. It is partly fuded by the federal ad the rest by state govermets ad local compaies, SBDC helps 20 percet of 140,000 small busiesses i Texas, helps SMEs fid ew markets by educatig them o mechaisatio of trade through the EB-5 program which has so far brought about 400 jobs. Oe busiess advisor is assiged to cases. I order to qualify for a federal loa guaratee scheme, SBDC is questioed o the ecoomic impact of the advice give to cliets. SMEs have to be made aware of the effectiveess of FTAs. Success rate of a SME it takes 18 moths before the st 1 sales ca take place ad every 3 moths, the small busiess is cotacted by cliets. Mr. Jua Pablo Alcatar, Director, Associacio de Empresarios Mexicaos (AEM) alog with other board members. Key discussio poits: Overview of AEM ad its operatios i Sa Atoio. ON TRADE Jauary - March

58 Takeaways: AEM is a bi-atioal etity established shortly after NAFTA wet ito effect, comprisig group of Mexica etrepreeurs who share best busiess practices maily i the areas of customs ad logistics. AEM has expaded to 24 cities across USA. 50 per cet members are America compaies ad 2000 Mexica busiesses. The Associatio caters to Sa Atoio-Austi Corridor ad has a etwork that covers the NAFTA Regio. The orgaisatio caters to sectors such as health systems, aotechology, IT ad wid eergy (major sector i Texas). Ms. Shahrzad (Sherry) Dowlatshahi, Chief of Protocol ad Head of Iteratioal Relatios Office, Ecoomic Developmet Departmet, City of Sa Atoio. Key discussio poits: Overview of Sa Atoio i terms of socio-ecoomic aspects. Takeaways: Sa Atoio is oe of the best places for busiess, careers ad job growth. Biomedical sector is the mai idustry. Uited Services Automobile Associatio (USAA) a fortue 500 compay is headquartered i Sa Atoio. I 2008, Sa Atoio became a sister city with Cheai. Cheai cosidered as the Detroit of Idia due to presece of auto maufacturers such as Ford ad Hyudai. Idia populatio of 8000 i North Sa Atoio expected to grow to oe millio i the ext 10 years. Asia commuity is oe of the fastest growig i the City. There is a growig Germa immigratio. Ms. Saai Fog, VP, Commuicatios & Membership, Free Trade Alliace Sa Atoio (FTA) ad her colleague. Key discussio poits: Overview of Free Trade Alliace (FTA) advocacy ad export efforts, foreig ivestmet programs ad services. Takeaways: The Alliace assists busiesses succeed iteratioally; provides Iteratioal Busiess Developmet Ceter (IBDC) programs; a busiess accelerator program for foreig compaies to expad or establish busiess i Sa Atoio; cyber security a major sector; FTA fudig 40 per cet govermet ad 60 per cet private; Wome i Iteratioal Program supports wome who participate ad succeed i iteratioal activities. Mr. Ferado Narvaez, Director of Busiess Developmet ad Sales, Sa Atoio Wholesale Produce Market (SAWPM) ad his colleague. Key discussio poits: Overview of SAWPM ad its operatios. Takeaway: The Market is uified ad is a strategically located distributio ceter which is state-fuded but ru by farmers offerig iovative warehousig solutios for merchats specializig i fresh produce ad packed groceries. Curretly, ruig at 98 per cet occupacy; it has 60 warehouses over 5000 sq. ft. of space. 70 per cet of produce comes from west coast of Mexico. NAFTA's impact: It helped local varieties of cor productio i Mexico due to misuderstadig of farmers about the US cor produce ad type, while i the case of Caadia meat idustry, it balaced out due to the mad cow disease i Caada. City: Detroit, Michiga Date: February 10-16, 2016 Theme: Regioal Iitiatives to Promote Exports ad Iteratioal Markets & Impacts of Trade Agreemets o Automotive ad Textile Idustries Detroit is popularly kow as Motor City. It had witessed rapid growth of its idustry but suffered a setback due to NAFTA. A tour of the city was provided by the Detroit Experiece Factory. The followig were the meetigs held: Ms. Sara Coulter, Director, Detroit Export Assistace Ceter alog with professioals from U.S. Small Busiess Admiistratio (SBA), U.S. Departmet of Commerce ad public ad private orgaisatios. Key Discussio Poits: Overview of services offered especially with respect to small ad mid-sized busiesses. Takeaways: The Ceter s ivolvemet i various programs ad evets details o WEFTEC 2016, TiE Detroit chapter; impact of Great lakes St. Lawrece Seaway System; opportuities i real estate, auto-related areas, healthcare ad educatio are prevalet. Aerospace ad architectural idustrial desigs are upcomig areas. SBA s export loa program is beig promoted by its seior iteratioal credit officers located at the Ceter. Post NAFTA, TPP discussios brought about mixed feeligs as NAFTA did. TPP would also brig i challeges due to levels i developmet ad depths of domestic policies. Mr. Xua Liu, Maager, Data Aalysis, Research, Southeast Michiga Coucil of Govermets (SEMCOG) ad his colleague. Key Discussio poits: SEMCOG s activities as a regioal plaig partership with respect to policy decisios, regardig trasportatio, regioal growth - air, water quality, lad use, educatio, local govermet efficiecy ad legislatio. Takeaways: The Coucil s mai fuctio is to help south east Michiga reboud; fillig the techical skill gap ad brigig about awareess of the importace of Gordie Howe Iteratioal Bridge (previously kow as New Iteratioal Trade Crossig), a border crossig to icrease flow of traffic ad goods. Plaig doe regioally but implemetatio carried out locally. 58 ON TRADE Jauary - March 2016

59 Ms. Megha K. Riorda ad her colleagues. Key discussio poits: US Immigratio laws ad their impact o NAFTA. Takeaways: Provided a overview of L1, H1B ad TN visa categories; key fidigs as a result of NAFTA - 25 per cet trade from Caada ad US through Detroit, approximately 1millio trucks, 4 millio persoal vehicles ad 7 millio people over a year pass through the border. Mr. Mustafa Mohatarem, Chief Ecoomist, Geeral Motors ad his colleague. Key discussio poits: Impact of trade agreemets o the automobile idustry especially Geeral Motors (GM). Takeaways: Impact of NAFTA U.S. has received more ivestmet post NAFTA, Detroit took its success prior to 1994 for grated, revival of Detroit s ecoomy comig from the private sector especially i Oaklad Couty. Bridges across Detroit River were a lost opportuity; Gordie Howe Iteratioal Bridge to provide service for trasporter trade. The policy cleaig for Detroit still remais to be doe, Japaese ad Korea compaies came i through the souther US states ad while workforce i Michiga uioised. I additio, GM did ot perform well i Idia markets resultig i a slowdow i its global busiess. GM has pre-empted this ad is tryig to take care of its Brazil ad Idia setups. The major challege faced by GM is that software is uable to keep up to hardware ad its competitors such as Ford Motor Compay support TPP. He recommeds that SAFTA s icomig shocks should be paid attetio, for it to be a success, from a trade stadpoit, while Idia ad Pakista have a very good opportuity. Ms. Mauree Krauss, Vice Presidet, Ecoomic Developmet, Detroit Regioal Chamber. Key discussio poits: A overview of the Chamber ad its activities. Takeaways: The Chamber is dedicated to improvig the ecoomy of Southeast Michiga. It has bee the regio s oldest ad largest chamber i the coutry havig served the busiess commuity for over 100 years; chamber activities ad iitiatives cetred o four strategic pillars amely, ecoomic developmet, regioal collaboratio, educatio reform ad membership value. City: Seattle, Washigto Date: February 16-20, 2016 Theme: U.S.-Caada Trade Relatios & Fair Labour Policies for Iteratioal Agreemets ad Seaport Operatios Seattle is ickamed The Emerald City ad is home to skilled, resourceful ad iovative people. The followig were the meetigs held i the City: Mr. Steve Myers, Seior Program Maager, Pacific Northwest Ecoomic Regio (PNWER). Key discussio poits: PNWER is a f a c i l i t a t o r t o r e g i o a l e c o o m i c developmet through parterships with America states (Alaska, Idaho, Motaa ad Orego) ad Caadia provices (Alberta, British Columbia ad Saskatchewa). Takeaways: PNWER comprises a cross-border forum of public ad private sectors workig to advace the regio s global competitiveess by dealig with its issues, icreasig ecoomic well-beig ad quality of life while also maitaiig ad ehacig world-class atural eviromet. US-Caada Pre-Clearace Agreemet o lad, rail, marie ad air trasport, is part of the Beyod the Border Actio Pla to ehace security while facilitatig lawful travel ad trade. Ms. Lye Dodso, Secretary Treasurer, Washigto State Labour Coucil (WSLC). Key discussio poits: WSLC s labour cocers over implemetig NAFTA, impact of NAFTA o the local labour ecoomy ad fair labour policies for iteratioal agreemets. Takeaways: Drafters of TPP used aspiratioal laguage, a free trade agreemet does ot address limits to greed, however, the geesis of a FTA oly serves as a great example. A major learig from NAFTA was the labour movemets. Example shared was the labour urest i USA due to cotrastig differece i Mexica labour structure ad uio policy attributes, havig a high sactio of Labour activists. TPP should try to focus o labour structure, movemet ad policyrelated issues i greater depth for its success. Mr. Sta Sorscher, Executive Board Member, Washigto Fair Trade Coalitio (WFTC). Key discussio poits: Efforts of WFTC to promote fair trade policies at the state ad regioal levels. Takeaway: NAFTA is a agreemet for ecoomic itegratio, ot trade. It was coceived that US producers would gai access to cheap labour ad weak regulatios i Mexico; immigratio problems were predictably bad. US rus a trade deficit with Mexico which will result i lower growth levels i the future. The reaso for this is a Labour Secretariat setup withi NAFTA called North America Agreemet o Labour Cooperatio (NAALC) which failed i its duties owig to a lack of leadership ad badly desiged power relatioships. Thus, for the success of TPP, it eeds to raise the domestic coditios to be at par with global stadards, as the discussios of the agreemet are focussed towards the ecoomy as a whole, cosiderig all the other regios as well. Mr. Rick Olso, Director of Govermetal Relatios ad Commuicatio, Puget Soud Regioal Coucil (PSRC). Key discussio poits: Overview of PSRC ad accomplishmets of the regioal Ecoomic Strategy ad ON TRADE Jauary - March

60 Prosperity Partership with respect to job creatio ad future regioal ecoomic activities. Takeaways: PSRC iteds to create 2 lakh 50 thousad jobs i 5 years; mai sectors aerospace, IT, biomedical, clea techologies, retail, gamig, maritime clusters ad philathropy. Followig were the poits metioed - Amazo the largest employer i the state. Washigto State does ot charge state tax o persoal icome; Visio 2040 Themed People, prosperity ad plaet which sigifies people of the regio, ecoomic prosperity ad its relatioship with the plaet, respectively. Ms. Ashley Dutta, Vice Presidet, Policy ad Commuicatio, Washigto Coucil o Iteratioal Trade (WCIT). Key discussio poits: Overview of WCIT ad impact of TPP. Takeaways: The Coucil exclusively advocates public policies that icrease W a s h i g t o ' s i t e r a t i o a l competitiveess especially pro-trade policies for SMEs. The City is a strog advocate of TPP havig potetial for Asia-Pacific regio. It will beefit U.S. workers ad improve the way the world trades. Oly egative aspects beig raised pertai to trade stadards of the coutries coupled with USA s latest Ivestor- State Dispute Settlemet (ISDS) for which Chia ad Idia may ot be ready, uder TPP. Ms. Melissa Faucci, Seior Plaer, Iteratioal Mobility ad Trade Corridor Program, Whatcom Coucil of Govermets (WCOG). Key discussio poits: Provided a overview of Iteratioal Mobility ad Trade Corridor Program (IMTC) led by WCOG, which brigs regioal public ad private etities to facilitate crossborder trade. Takeaways: The program brigs together busiess ad govermet agecies to idetify ad promote improvemets to mobility ad security for four border crossigs that coect Whatcom Couty ad the Lower Mailad of British Columbia. These together are kow as the Cascade Gateway. The Program eables chambers of commerce to have a huge say i policy issues. Thus, stroger border commuities ca ehace smooth fuctioig of trade, across borders. Ms. Laurie Trautma, Associate Director, Border Policy Research Istitute (BPRI). Key Discussio poits: Provided a overview of BPRI s work, iteratioal trade betwee Caada ad Washigto State; impact of NAFTA o local ecoomy. Takeaways: BPRI housed at Wester Washigto Uiversity, udertakes research that iforms policy-makers o matters related to the Caada - U.S. border. Priority focus areas are trade ad trasportatio, ecoomics, eviromet, immigratio, ad border security. It was set up to satisfy the eed for evidece-based research to guide border policy i the aftermath of 9/11 terrorist attacks. Impact of NAFTA America cross-border trips orieted more toward vacatio/recreatio ad less towards shoppig; work-related trips more prevalet ad trips to visit family i British Columbia (Caadia Provice). Whereas, the Caadia trips ivolve shoppig, vacatio ad recreatio, moreover currecy exchage rate iflueces the amout of travel. Other tha the meetigs, there were evets held i Detroit, Michiga. Networkig receptio The receptio was hosted by the members of Ido-America Chamber of Commerce (IACC- USA) which serves greater Detroit ad beyod. Home Hospitality The program provided the opportuity to ejoy a meal i the home of local commuity members. Voluteer Activity USA is kow for volutarism. As part of the program, a voluteer activity was orgaised with Focus: Hope, a o-profit orgaisatio caterig to the eeds of miority commuities. The participats were expected to package carrots i plastic bags which would be distributed to the beeficiaries of the orgaisatio. Key takeaway for Idia with respect to these curret egagemets o trade agreemet egotiatios: Overall, the visit focused ad emphasised o the eed ad importace of the govermet's role i developig ad sustaiig strog ad cotiuous developmet of domestic policies.the govermet should focus o labour quality ad law; quality stadards, ivestmet ad ivestor rights; quality ifrastructure; moetary ad fiscal policy ad depth ad coverage of developmet throughout Idia. Various discussios laid tremedous importace o the govermetidustry- academia tie-ups to tackle issues metioed above. The etire visit exposed participats to the role ad coverage of activities of orgaizatios ad the methodology i facilitatig global busiess. Thus, for Idia to make cotiuous ad substatial gais from trade agreemets like TPP, Asia Pacific Trade Agreemet (APTA), South Asia Free Trade Area (SAFTA) Agreemet etc., Idia eeds to focus o buildig ad stregtheig the dimesios of its ecoomy coupled with icreased ad improved stakeholder participatio i policy ad egotiatio process. 60 ON TRADE Jauary - March 2016

61 Startup Ecosystem Addresses Areas i Developmet Sectors I a iterview with World Trade Cetre Mumbai, Mr. Rajat Tado, Seior Director, NASSCOM 10,000 startups Program speaks ot just about Nasscom s ambitious program but also about the potetial these tech start-ups possess to address developmet requiremets i the areas of health, ifrastructure ad eergy to ame a few. Mr. Tado also makes a case i favour of social startups with the icreasig umber of fiacig optios. The 10,000 Start-ups programme of Nasscom aims to foster 10,000 start-ups i the techology space by offerig icubatio, metorship ad agel fudig support. How do you pla to achieve this goal? 10,000 Startups is a ambitious attempt by NASSCOM to scale up the start-up ecosystem i Idia. I its last four phases, a total of 11,000 startups applied, 1,100 shortlisted ad 500 bee able to witess this tremedous achievemet. I believe that better access to agel ivestors, veture capitalists, seed fudig ad iterest-free loa has led to the startup buzz i the etire atio. With more ad more start-ups hittig the millio mark, people are gettig more iclied towards startig somethig of their ow. Also, the govermet focus i this area Budget aoucemets for Startup fudig, Startup Idia, Stad up Idia like iitiatives give a big boost. How is the Idia start-up ecosystem differet from coutries like USA ad UK which are ahead of Idia i techology drive product start-ups? The primary differece till ow which is chagig rapidly has bee exposure ad access to fudig. There is also a fudametal shift i the society today where more ad more yougsters are allowed to take risks ad fail. have bee impacted by way of fudig, acceleratio ad metorig. Some of their impacted startups iclude SmartVizX, Lazylad, EglishDost, Flutura, SeekSherpa, Faircet, Hiree, Sliderule, Vidgyor, CustomerXPS to ame a few. Phase 5 is goig to be our biggest Koect to date as we are aimig to create a greater impact across the early stage startup ecosystem. Accordig to the report joitly released by NASSCOM with Ziov, Idia is raked third amog the global startup ecosystem. Withi oe year, the umber of start-ups i Idia has grow by 40 per cet, the report otes. What are the key drivers of this growth i the start-up idustry? Idia has lately started to evolve i the fields of IT ad techology. More ad more umber of people are learig computers ad takig various courses i programmig. With the youg blood ifused with the right talets, the coutry has With the umber of tech start-ups i Idia growig over 40 percet over the last year, these startups ca potetially develop iovative solutios to address the developmet eeds of the coutry as startups focus o developmet solutios for health, ifrastructure ad eergy amogst others. The cetral govermet has improved the ease of doig busiess for start-up compaies through its Start-up Actio Pla. Especially, it itroduces compliace regime based o self-certificatio ad plas to roll out mobile app ad portal to simplify the process of registratio. Are you ON TRADE Jauary - March

62 satisfied with this policy measure? Do you feel that the govermet should do more to make the life easy for startup etrepreeurs? NASSCOM feels that policy regulatios like ease of compliace, reliace o self-certificatio istead of audits, tax exemptios for startups will allow etrepreeurs to devote their time, eergy ad resources to build upo their iovative ideas. With the umber of tech start-ups i Idia growig over 40 percet over the last year, these startups ca p o t e t i a l l y d e v e l o p iovative solutios to address the developmet eeds of the coutry as startups focus o developmet solutios for health, ifrastructure ad eergy amogst others. A soud itellectual property regime is crucial for the sustaiable developmet of techology start-up idustry. I its Start-up Actio Pla, the govermet said that it is lauchig a pilot scheme to offer legal support to start-up compaies i filig IP applicatios, expedite patet examiatio process, etc. Ca we have commets o this? Such iitiatives are defiitely welcome as legal compliaces are oe of the most importat aspects for safeguardig the IP of ay startup. It is leart that may start-up compaies i Idia have shifted their base to coutries like Sigapore as these coutries have favourable policy ad regulatory eviromet. Do you feel this tred would reverse i favour of Idia i the comig days with the cetral govermet ad RBI takig steps to support start-up ecosystem? Accordig to NASSCOM Ziov Report, Idia has moved to the third rak i global start-up ecosystem. May aoucemets i Startup Idia Program - like Self certificatio, sigle widow for approvals ad rejectios, fast track exit ad tax exemptios. We clearly see the right itet here, hope it gets implemeted effectively. We have see start-up compaies brigig iovatio i sectors like e-commerce, cosumer services, aggregatio etc. Could you share your thoughts o what are the sectors that possess uexplored potetial for start-up compaies ad how ca the aspirig start-up etrepreeurs exploit this opportuity? This year we have see massive umber of startups i Fitech, edtech ad foodtech. With the hype of fitech reachig resoudig levels i 2015 ad ivestmets i the space witessig larger icreases, the sector will become much more competitive i The iteret of thigs (IoT) will be the scalable sector i the startups ecosystem will see emergece of fit tech (fitess ad techology), Software as a Service (SaaS) based startups ad IoT. We also believe that social startups would also be a area of focus ad they should defiitely get more support from ivestors ad veture capitalists. Accordig to you, what are the other issues plaguig the Idia start-up idustry ad how ca the govermet icubators, accelerators ad ivestors address them? We also believe that social startups would also be a area of focus ad they should defiitely get more support from ivestors ad veture capitalists. Number of techology startups i Idia has grow by 40 per cet over last year ad has crossed 4,200 by ow. They are workig o iovative solutios that ca potetially address developmet eeds of the coutry with over 40% of these startups focused o developig solutios for health, ifrastructure ad eergy. We hope that the startup Idia lauch will be addressig some of the issues that is outlied ad other issues that have bee detailed i our submissios over the last few moths, ad the balace are addressed i the upcomig Uio budget like exemptio of MAT, stock optios be allowed for advisors, fouders, idepedet directors, metors ad cosultats, ecouragig ivestors by simplifyig compliaces ad esurig time-boud processes etc. 62 ON TRADE Jauary - March 2016

63 Hardware Emerges ad Software Evolves for Startups Varu Chawla, Co-fouder, 91sprigboard t is evidet eough for ayoe to see Ithat the startup ecosystem i Idia is boomig. The latest statistics from NASSCOM s aual report cites, Idia rd as rakig 3 globally for umber of startups. This impressive growth meas that it is ot just the volume of startups that has icreased, it is also the variety. It is this variety that is beig examied i the article, from two very specific leses; hardware ad software. The first is the hardware side of thigs. If oe were to tur the clock back about two years, the the ewly formed BJP govermet led by Prime Miister Modi had aouced a ambitious campaig titled Make i Idia. The aim was to create a busiess eviromet geared to make Idia a global maufacturig hub. Amog the may policies icorporated withi this iitiative, from the perspective of startups, three stood out - creatig a skilled workforce, multiple icetives for maufacturig ad makig it easier to secure itellectual property held the most potetial ad promise. This was probably the first time that hardware startups bega cosiderig maufacturig i Idia. Accordig to Tracx, a start-up tracker, there were 122 hardware led tech startups that were fouded i 2014 ad 85 i Close to 30 of these attracted ivestors ad 16 actually got fuded as well. The variety of startups i the hardware space, to ame a few, spa categories such as robotic solutios for warehouses, electric scooters, wearable techology, car diagostics ad maker-spaces such as Makers Asylum, Workbech Projects ad aother called Baao. Baao, the lesser kow of the three has a team workig i a iterestig area of work. They aim to extract the hard from hardware ad positio themselves as a makers playgroud. Lookig to democratize access to tools ad resources, everyoe becomes a maker. Alog with guidace, they will provide the tools for people to play with. Folks will have access to state-of-the-art tools ad machies, like 3D priters ad be able to iteratively work o projects, eve remotely if required. Their model, which icludes a itegrated olie platform i the future, has a lot of scope for collaborative efforts that are ot boud by geographical limitatios. These guys are goig to play a big role i makig the world of hardware accessible ad fu for everyoe. If oe shifts focus from the emergig world of hardware start-ups to the rapidly evolvig world of software i start-ups i Idia, it would be the focus shift from computatioal ad aalytical prowess of the back-ed to aesthetic appeal ad desig of the frot ed. This is the classic right brai vs left brai pheomeo that oe sees playig a major role i this shift. Previously, the focus was ot just for etrepreeurs but eve for the ivestor commuity o how well the backed for ay software drive product works. The faster the computig capabilities, the more complex the algorithm, the better the product was assumed to be. Slowly but surely, with cosumer behaviour demadig much more, the focus has shifted to the frot ed. More ad more attetio is beig put o how somethig looks ad feels, the back-ed capabilities themselves simply ot beig eough to impress aymore. Cosider the classic PC vs MAC story. PCs domiated the persoal computer market util Steve Jobs chaged the game with his attetio to aesthetics, desig ad user iterface. We made the buttos o the scree look so good, you ll wat to lick them Mr. Jobs quipped oce. This thikig has ow foud its way to the Idia startup ecosystem. Desig thikig ad a focus o the actual, iteractive experiece of the ed user has caught o i a big way. Persoally, I m guilty of beig very particular about the user experiece as a potetial cosumer of ay product or service. If a product does ot look appealig, chaces are it eds up ot beig used. Recetly, a extesive e x e r c i s e w a s u d e r t a k e a t 91sprigboard to figure out which tool should be used as the lead maagemet system. After a lot of research wet ito it, fially a tool was chose which we assumed to be most efficiet. However, oe of the mai criteria for the selectio was the product s user friedliess of the iterface. After some time of rollig it out across the orgaizatio, it was leart that while the tool has a effective backed, what the compay believed to be was a user friedly frot ed, was just ot beig used. The feedback o the tool was clear; it was ot user friedly eough. After revisitig the drawig board stage, it was decided to settle for aother tool which has a much easier iterface ad the adoptio rate was see to have a steep rise. This simply goes to show how importat this approach has become ad the similar approach was beig adopted by etrepreeurs across the board. 91sprigboard hosts a umber of kowledge-based evets ad the demad for desig thikig workshops has see a steep rise over the last few years. The iterestig thig to ote is the profile of the attedees, spaig etrepreeurs across the spectrum, right from the idea stage to full-fledged ruig busiesses. To coclude, both these treds are hearteig to see ad will be iterestig to track as the focus o start-ups cotiues to gather mometum i Idia. While the goig has bee better tha before for hardware startups, there is still a l o t o f w o r k f r o m a p o l i c y implemetatio poit of view to be doe. ON TRADE Jauary - March

64 Will BEPS Icrease Compliace Costs for MNCs i Idia? Maulik Doshi Parter - Iteratioal Tax ad Trasfer Pricig, SKP Busiess Cosultig Services LLP BEPS Model Actio Pla by OECD I the backdrop of a big morale debate of tax evasio versus tax plaig & avoidace, the Orgaizatio for E c o o m i c C o - o p e r a t i o a d Developmet (OECD) i July 2013 released its Actio Pla o Base Erosio ad Profit Shiftig (BEPS), listig 15 focus areas for potetial chage i iteratioal tax rules ad treaties. As a result of a extesive exercise for more tha two years, o October 5, 2015, OECD preseted a set of fial reports o these 15 actio plas which aimed at curbig the perceived tax plaig ad tax avoidace practices by Multiatioal Groups/Compaies (MNCs) ad is cosidered to be oe of the most f u d a m e t a l c h a g e s i t h e iteratioal tax framework of this cetury. OECD estimated that tax avoidace through base erosio ad profit shiftig has resulted i loss of tax reveue to the tue of $ billio every year - that is aroud 4-10% of global corporate icome tax reveue. It is worthwhile to ote that developed as well as developig coutries across the globe were a part of this importat project alog with iteratioal orgaizatios such as the Iteratioal Moetary Fud, the World Bak ad the Uited Natios. It is also observed that more tha 12,000 pages of commets were received o 23 discussio drafts published by OECD. I priciple, the Actio Pla aims to esure that profits are taxed where ecoomic activities geeratig the profits are performed ad where value is created. Notably, there are clear sigs of w i d e a c c e p t a c e t o O E C D s recommedatios. Various coutries like Spai, Korea, Germay, Australia, Mexico, Polad, Chia, Netherlads, Frace ad recetly Idia have already revised / proposed to revise their tax laws to a certai extet to brig them i lie w i t h t h e B E P S M o d e l P l a recommedatios. Actio 1: Address the tax challeges of the digital ecoomy Actio 2: Neutralise the effects of hybrid mismatch arragemets Actio 3: Stregthe CFC rules Actio 4: Limit base erosio via iterest deductios ad other fiacial paymets Actio 5: Couter harmful tax practices more effectively, takig ito accout trasparecy ad substace INDUSTRY SPECIFICATION COHERENCE ACTION PLAN ON BASE EROSION AND PROFIT SHIFTING (BESP) SUBSTANCE With OECD s Model Actio Pla, the iteratioal tax ladscape is expected to udergo sigificat chage, which ca be observed from the all roud coverage of the BEPS project. Idia s Budget 2016 Adoptio of BEPS actio pla recommedatios for TP documetatio As a active member i the BEPS project l e a d b y t h e O E C D, t h e I d i a govermet has proposed to itroduce the BEPS actio pla o trasfer pricig documetatio, i.e. Coutry-by-Coutry (CbC) Report ad master file i the Idia tax laws with effect from fiacial year The OECD report o BEPS Actio Pla 13 provides for revised stadards for trasfer pricig documetatio ad a EXECUTION Actio 15: Developmet of a multilateral istrumet for amedig bilateral treaties TRANSPARENCY AND CERTAINTY Actio 11: Establish methodologies to collect ad aalyse data o BEPS ad actios addressig it Actio 12: Require taxpayers to disclose their aggressive tax plaig arragemets Actio 13: Re-examie trasfer pricig documetatio Actio 14: Makig dispute resolutios more effective Actio 6: Prevet treaty abuse Actio 7: Prevet the artificial avoidace of permaet establishmet status Actio 8-10: Aligig Trasfer Pricig Outcomes with value creatios 64 ON TRADE Jauary - March 2016

65 template for CbC reportig of icome, earigs, taxes paid ad certai measure of ecoomic activity. It is recommeded i the BEPS report that the coutries should adopt a stadardized approach to trasfer pricig documetatio. A threetiered structure has bee madated cosistig of the followig: a. A master file cotaiig stadardized iformatio relevat for all Multiatioal Eterprises (MNEs) group members; b. A local file referrig specifically to material trasactios of the local taxpayer; ad c. A Coutry-by-Coutry report cotaiig certai iformatio relatig to the global allocatio of MNEs icome ad taxes paid together with certai idicators of the locatio of ecoomic activity withi the MNE group. I lie with the iteratioal cosesus o the BEPS topic ad as recommeded by the OECD, it is ow proposed by the Idia Govermet i the Budget 2016 that the compaies eed to maitai ad furish group level extesive details to Idia tax authorities by way of CbC report ad Master file, i additio to the curret trasfer pricig documetatio requiremets i Idia, which are geerally equivalet to the local file as referred by OECD. The CbC reportig ad master file requiremet is itroduced with effect from Assessmet Year (fiacial year ), requirig Idia headquartered MNEs ad certai other Idia etities of global MNEs to file the CbC report, which shall iclude ecoomic iformatio withi the multiatioal group, such as ature of mai busiess activities, reveues, profits/loss, icome taxes paid, stated capitals, accumulated earigs, umber of employees, tagible assets, etc. for each coutry i which the group operates with the Idia authority. Further, as per the Memoradum to the Fiace Bill, Idia will adhere to OECD prescribed group reveue threshold of Euro 750 millio (INR 5,395 crores at curret exchage rates) for the applicability of CbC requiremet, though the specific threshold i Idia currecy would be prescribed later (based o exchage rate as o March 31, 2016). Striget pealty provisios have also bee prescribed for o-furishig ad/or furishig iaccurate particulars as high as INR 5,000 per day to INR 50,000 per day of default. Give the above chages to the TP documetatio requiremet, it is evisaged that the provisios are likely to impact several large Idia ad global MNEs operatig i Idia. Therefore, it is vital for the MNEs to evaluate their preparedess for collatio ad maiteace of data required i the CbC report. Further, it would also be pertiet for the MNEs to upfrot aalyze the data requested i the CbC report to comprehed ay probable litigatio ad how the reveue/stakeholders may iterpret the iformatio submitted i the CbC report. It is worthwhile here to ote that as o date coutries iclude Australia, Belgium, Chia, Europea Uio member states, Frace, Irelad, Italy, Japa, Mexico, Netherlads, Spai ad Uited Kigdom are goig ahead with the implemetatio of BEPS, especially CbC reportig. For other aspects of iteratioal taxatio also, the BEPS project is extremely relevat for Idia, especially the actio plas dealig with treaty abuse, permaet establishmet, itagibles ad digital ecoomy. Few of U N I O N BUDGET 2016 the above impact areas are discussed below: Operatioal Models - ecoomic owership will be more sigificat tha legal owership The work uder Actio Pla 8 10 (Aligig trasfer pricig outcomes with value creatio) is aimed at esurig that trasfer pricig outcomes are better aliged with value creatio. Essetially, these actio plas aim to curb tax plaig strategies by MNCs that have resulted i accumulatig huge profits i tax favorable jurisdictios without correspodig value-added activities beig doe i that locatio. Basically, it requires that returs geerated from itagibles should be correctly shared with compaies who i reality perform value addig fuctios or bear the actual risks i developmet of those itagibles. With the establishmet of umerous R&D cetres i Idia, availability of abudat ad ecoomical talet pool ad icreased focus o bradpositioig for augmetig the busiess/market share, discussios o trasfer pricig aspects of itagibles have domiated the Idia TP ladscape i the past few years. May MNCs establish software d e v e l o p m e t o r R e s e a r c h & Developmet (R&D) ceters i Idia which they geerally set up as captive outsourcig services/cotract R&D services providers. Typically, these captive ceters i Idia are ot eligible for itagible related returs. However, ON TRADE Jauary - March

66 i light of above BEPS Actio Pla, these MNCs would have to revisit their remueratio / pricig policy for such R&D cetres ad evaluate whether these ceters actually perform high-ed developmet work ad add sigificat value to the itagible? I such a case, a mere cost plus mark-up would ot be appropriate. The same would be the case with Idia distributors of MNCs icurrig huge advisemet expeses to ehace the brad belogig to the foreig paret. I such cases also, the remueratio policy eeds to meet with the BEPS Actio Pla. Holdig compay arragemets Actio Pla 6 (Prevet Treaty Abuse) ackowledges that multiatioal taxpayers ofte egage i treaty shoppig ad other treaty abuse strategies i order to claim treaty beefits i situatios where these beefits were ot iteded to be grated, thereby deprivig coutries of tax reveues. To prevet this treaty abuse, OECD proposes a specific ati-abuse rule ad the limitatio-o-beefits (LOB) rule, which limits the availability of treaty beefits to etities that meet certai coditios. Uder Actio Pla 15, a multilateral istrumet is beig developed to be siged by all iterested coutries that effectively would amed existig tax treaties to implemet measures to combat BEPS. Idia is amog the participats i the group developig the multilateral istrumet, which is expected to be ready for sigature by December 31, O the Iboud ivestmet side, till ow the ivestmets i Idia i most cases are routed through other coutries such as Mauritius, Sigapore, Netherlads, Luxembourg & Dubai. For these existig structures, use of holdig compay i specific locatios, without ay substace i those locatios, will have to be reevaluated ow. Idia is already egotiatig its treaty with Mauritius to prevet the treaty abuse ad has also itroduced Geeral Ati Avoidace Regulatios (GAAR) uder the local laws ad likely to become effective from April 1, From a outboud perspective, it is importat for Idia MNCs to relook at their overseas structures i light of the above developmets. Oe of the Actio Pla requires coutries to limit the beefits of preferetial tax regimes (icludig IP or iovatio boxes i coutries such as Netherlads, Switzerlad, Sigapore etc.) i the absece of substatial activity i the relevat coutry. Also, the chage i corporate residece defiitio will i m p a c t I d i a c o m p a i e s a d etrepreeurs goig global. If overseas subsidiaries are effectively maaged from Idia, such etities may be treated as beig Idia residet ad taxed o worldwide icome. Further, Idia may also itroduce specific Cotrolled Foreig Corporatio (CFC) regulatios as recommeded uder Actio 3 (Stregthe CFC Rules) of the BEPS Model Pla. Digital Ecoomy BEPS Actio Pla 1 deals with challeges of Digital Ecoomy. However, this is oe area where eve OECD has ot completed its work but has ackowledged that further work ad cosultatio i this area eeds to be carried o. I the curret report, OECD has proposed a umber of steps to address the tax challeges arisig o accout of digital ecoomy however have refraied from makig ay fial recommedatios. Surprisigly, Idia has moved very quickly o this ad the Budget 2016 provisios iclude a ew levy of tax Equalisatio Levy of 6% o the cosideratio payable for specified services to o residet digital platforms. The specified services are maily i the ature of provisio of olie advertisig, digital space for advertisig or ay other facility or service for the purpose of o l i e a d v e r t i s e m e t. O l i e advertisig/ digital platform compaies eed to evaluate the above provisio carefully, whether or ot these compaies would get tax credit agaist the levy i the coutry of their residece could be a matter of debate ad the aforesaid levy may result i a tax cost i Idia for these multiatioal digital compaies ad icrease the costs of advertisemet ad other digital ecoomy products ad services. Coclusio It is ow time for the multiatioal eterprises to be BEPS-ready. At the outset, such multiatioal eterprises eed to uderstad the implicatios of the BEPS actios pla, evaluate the potetial impact, idetify the potetial tax risks associated ad possibly restructure ad realig the existig arragemets, if the eed arises. (The views expressed are persoal ad do ot ecessarily represet that of the orgaizatio) 66 ON TRADE Jauary - March 2016

67 Keyur Shah Tax Markets Leader ad Parter, Iteratioal Tax Services With the globalisatio of busiesses over the past few decades, worldwide trade ad ivestmets has grow expoetially. The Govermet of Idia has also bee makig efforts to icrease its share of world trade ad icrease foreig ivestmets i Idia, through various iitiatives such as the Make i Idia campaig, seekig to itroduce GST ad improvig ease of doig busiess i Idia. The icreased cross-border dealigs have resulted i a sigificat icrease i the itra-group trasactios of MNCs havig a presece i Idia. A key factor impactig MNCs with a presece i multiple coutries across the w o r l d i s t h e g l o b a l r e g u l a t o r y eviromet ad the maer of allocatio of profits by MNCs to its group compaies i differet coutries. O e o f t h e r e c e t developmets i this cotext is the publicatio of the 15 Actios (Actio Plas) o Base Erosio ad Profit Shiftig (BEPS) by the Orgaisatio of Ecoomic Cooperatio ad Developmet (OECD) as a part of G20 iitiative. The Actio Plas o BEPS, the fial reports of which were released i O c t o b e r , i s a culmiatio of more tha 2 years of coordiated actio by the various OECD ad G20 coutries, icludig Idia, with the cosultatio of represetatives from various o-oecd ad developig coutries ad aims to address various flaws i iteratioal tax laws that aid i profit shiftig. Are MNCs Ready to Comply with BEPS Norms? The OECD coservatively estimates the reveue losses o accout of BEPS recommedatios at USD billio aually or aywhere from 4-10% of global corporate icome-tax reveues. The Actio Plas o BEPS seek to address a wide rage of aspects by which BEPS takes place, such as harmful tax p r a c t i c e s, h y b r i d m i s m a t c h arragemets, iterest deductios ad permaet establishmet. Few Actio Plas such as digital ecoomy ad hybrid mismatch arragemets. will require additioal work, which is expected to cotiue ito However, may of the Actio Plas are cosidered to be fial ad the miimum stadards that are expected to be followed by OECD ad G20 member coutries. G20 Out of the 15 focus areas, BEPS reports o Actio Pla 8 to 10 (aligig trasfer pricig outcomes with value creatio) ad Actio Pla 13 (guidace o trasfer pricig documetatio ad coutry-bycoutry reportig) iclude detailed Arati Amokar Director, Trasfer Pricig, Erst & Youg LLP, Idia recommedatios for sigificat chages i the key elemets of iteratioal tax systems relatig to t r a s f e r p r i c i g m a t t e r s. T h e implemetatio of the BEPS Actio Plas o the trasfer pricig matters will have the most sigificat impact for MNCs i Idia, sice may of the recommedatios could result i a icrease i disputes with Idia tax authorities. I recogitio of the fact that may of the Actio Plas could result i a icrease i disputes betwee tax authorities ad taxpayers as well as betwee the competet authorities of various coutries, OECD has suggested that arbitratio would be a good aveue for speedy resolutio of disputes. H o w e v e r, I d i a h a s v o i c e d i t s disagreemets to the itroductio of madatory arbitratio for resolutio of disputes, sice it may have a adverse effect o its sovereig rights, ad will also limit the ability of developig coutries like Idia to apply their domestic laws for taxig o-residets ad foreig compaies. Uder Actio Pla 8-10, OECD has expressed the view that MNCs have, i istaces, bee able to use or misapply trasfer pricig rules to separate icome from the ecoomic activities that produce it ad shift it to a l o w - t a x e v i r o m e t. Therefore, Actio Pla 8-10 cotais guidace focussed o esurig that profits are taxed where the ecoomic activities geeratig profits are performed ad where value is created. ON TRADE Jauary - March

68 This Actio Pla could impact several operatig structures typically followed by MNCs that have existig activities i Idia. Cosiderig cost advatages i Idia ad the pool of talet available, may MNCs have set up outsourcig cetres i Idia for activities such as software developmet, cotract research ad developmet, are remueratig them with a mark-up over total operatig costs, o the basis that these etities are low risk bearig etities. I this regard, while the OECD guidace recogises that the day-to-day decisio makig fuctios may eed to be outsourced, it clearly states that the key decisiomakig ad strategic fuctios i relatio to the specificatios / desig of the itagibles, beig developed, ought to be performed by a paret. Tax authorities i Idia have idicated o various occasios that Idia has bee makig a huge cotributio i the developmet of itagibles ad i esurig their proper maiteace ad exploitatio ad accordigly, additioal icome ought to be allocated to the Idia etity over ad above a cost plus mark-up. Accordigly, MNCs would eed to aalyse the value-creatig fuctios performed by outsourcig cetres i Idia ad determie whether the curret remueratio model adopted by the MNCs is i cosesus with the fuctios performed by such captive uits. Further, OECD has, for the first time, also provided guidace o commodity tradig trasactios betwee related parties. It has clarified that the arm s legth ature of the price charged by related parties i their iter-compay dealigs ca be justified by usig the quoted price of the commodity o a recogised domestic or iteratioal stock exchage, with appropriate adjustmets made for differeces i the terms of the trasactio such as isurace, freight ad foreig currecy terms. Actio Pla 8-10 also recommeds a simplified approach to bechmarkig provisio of low value added services withi a MNC group, which do ot form a part of the core busiess activities of the MNC group. Most MNCs operate o a model wherei certai low value addig services such as huma resources, fiace, tax ad legal. are provided from a cetralised locatio to avoid duplicatio of fuctios across the group ad to achieve cost effectiveess. OECD has stated that the arm s legth charges for such low-value addig services ca be derived by determiig the total costs icurred for rederig such services ad allocatig them to various group etities o the basis of allocatio keys. This is iteded to replace the commo approach adopted by most coutries examiig the beefit test i detail while determiig the allowability of such paymets. Idia has bee historically challegig such trasactios o the basis that such services are duplicative with the fuctios already beig performed i Idia ad / or that such services do ot beefit the Idia etity. Further, ay mark-ups charged o such costs have typically ot bee accepted. Idia is ulikely to adopt the simplified approach beig recommeded by the OECD, sice it cosiders paymets for such itragroup services to be a leadig cause for BEPS. Therefore, for etities i Idia availig such low-value addig services, such paymets are likely to cotiue to be examied i detail, ad MNCs would eed to cotiue to provide detailed documetatio durig audits to support the beefit test. Further, OECD also recommeds that a mark up of 5 percet o allocated costs for low-value addig services ca be recovered. I this cotext, it remais to be see whether the mark-up of 5 percet recommeded by OECD is foud acceptable by the Idia tax authorities. The Actio Pla 13 sets out a three-tiered a p p r o a c h t o t r a s f e r p r i c i g documetatio ad coutry-by-coutry (CbC) reportig, amely, a master file cotaiig high level iformatio regardig a MNC s global busiess operatios, a local file providig the local admiistratio with iformatio o related party trasactios ad their arm s legth pricig determiatio ad a CbC reportig template providig key fiacial ad other iformatio for each etity i each tax jurisdictio. Such iformatio is likely to be shared by coutries with each other uder the multilateral mechaism for automatic exchage of iformatio. Vide Budget 2016, the Govermet of Idia has proposed to amed the curret trasfer pricig documetatio requiremets to itroduce OECD recommedatios uder Actio 13. The CbC reportig is proposed to be made applicable from FY to Idia MNCs havig a cosolidated reveue of 750 millio (approxmately INR 5,395 crore). Further, all the Idia taxpayers are also 68 ON TRADE Jauary - March 2016

69 required to prepare a master file i the prescribed format, ad file it i accordace with the rules to be prescribed; the said requiremet is i a d d i t i o t o t h e e x i s t i g T P documetatio rules applicable to a taxpayer eterig ito a iteratioal trasactio. The CbC rules, will lead to a trasparet flow of iformatio betwee tax authorities of Idia ad other coutries, to examie the etire value chai of the group as a whole, istead of lookig at the Idia operatio o a stadaloe basis. I additio to Actio Plas 8-10 ad 13, the guidace provided i Actio Pla 7 dealig with the artificial avoidace of Permaet Establishmets (PEs) would also have a far reachig impact i may idustries. A key chage i this Actio Pla is the lowerig of the threshold of what costitutes the coclusio of cotracts by oe etity o behalf of aother, which would result i the formatio of a PE i Idia. The revised OECD guidace states that if a etity i Idia habitually plays a pricipal role leadig to the coclusio of cotracts with third parties ad such cotracts are routiely cocluded by a overseas eterprise without ay material modificatio to the terms, the such activities of the Idia etity ca costitute a PE of the overseas eterprise i Idia ad the profits i relatio to such activity ca be taxed i Idia. For example, where Idia marketig / sales service providers idetify customers i Idia for sellig goods of its overseas group etity, determie the key terms ad the price at which the customer is willig to buy the goods ad commuicate the same to the overseas group etity, if the group etity routiely accepts the pricig ad terms as agreed by the Idia service provider, without ay material modificatios, the there exists a risk that such Idia etity could costitute a PE of the overseas group etity i Idia. However, there is o guidace provided by OECD regardig what would amout to pricipal role ad material modificatios. The OECD s guidace uder Actio Pla1 regardig the digital ecoomy, i.e. a ecoomy based o digital computig techologies, cosiders the broader direct ad idirect challeges raised by the digital ecoomy ad evaluates the optios to address those challeges. OECD ackowledges that special rules caot be desiged exclusively for the digital ecoomy, rather it states that these challeges will be addressed i other Actio Plas. The OECD s work o taxatio issues withi the digital ecoomy will cotiue ito 2016 ad beyod. However, coutries like UK ad Australia are already takig atioal actio with respect to the tax treatmet of activities i the digital space, i.e. vide levy of a ew tax mechaism, these coutries are targetig MNCs like Google that are able to sell goods ad services to customers i these coutries while barely payig ay corporate icome tax relative to their earigs i these coutries. I Uio Budget 2016, the Fiace Miister of Idia Mr. Jaitley observed that it is challegig to tax digital trasactios udertake by the digital ecoomy. I order to address these challeges, the Govermet of Idia has proposed to itroduce equalisatio levy at the rate of 6% of the amout of cosideratio received by a o-residet, providig certai services to residets. Uder Actio 4 of BEPS, OECD has suggested that iterest deductios ought to be liked with the uderlyig e c o o m i c a c t i v i t y. O E C D h a s recommeded that coutries should implemet a fixed ratio rule that would limit the et iterest deductios claimed by a etity (or a group of etities operatig i the same coutry) to a fixed percetage of earigs before iterest, tax, depreciatio ad amortizatio (EBITDA), irrespective of the actual leverage of the etity. The said ratio is recommeded to be somewhere betwee 10% ad 30% of applicable EBITDA. From a Idia perspective, Idia has a high iterest rate eviromet domestically, ad eve a higher 30% bechmark may ot allow domestic compaies to claim a deductio for the full amout of third party iterest expeses, give that cost of fuds i Idia is high. This would result i a icrease i taxable icome of a etity i spite of the etity icurrig geuie iterest expese for the purpose of geeratig taxable icome. Various coutries have already take steps to implemet ecommedatios provided by OECD s BEPS reports. The UK Govermet has published the draft legislatio to eable the itroductio of CbC reportig i the UK. The legislatio, which will be icluded i the Fiace Act 2015, cofirms that UK pareted MNCs will be required to provide tax related data. Similarly, coutries like Irelad, Frace, Polad ad Korea have also ameded their laws to implemet CbC reportig provisios. Further, the ew tax treaty siged betwee Australia ad Germay o November 12, 2015 is the first tax treaty Australia has siged that comprehesively icorporates the proposals i the OECD BEPS fial recommedatios o dual residecy, commissioaire arragemets ad treaty shoppig. The Govermet of Idia has proposed amedmets to the Icome tax Act / Rules i the Budget aouced o F e b r u a r y 2 9, i o r d e r t o immediately implemet Actio Pla 13 ad Actio Pla 1. I view of the detailed guidace provided by OECD i the BEPS fial reports o a umber of aspects, ad the amedmets proposed by the Govermet of Idia i the Act ad by way of amedmets to Double Tax Avoidace Agreemets, it is imperative for MNCs operatig i Idia to re-look at their existig operatig models ad cotracts vis-à-vis the actual coduct of the parties ivolved, ad if required, restructure the same so as to avoid ay adverse impact o accout of these guidelies. ON TRADE Jauary - March

70 Real Estate ad Ifrastructure to Get a Fillip Auj Puri, Chairma & Coutry Head, JLL Idia o give him due credit, Mr. Aru TJaitley, Fiace Miister has defiitely tried to maage expectatios by havig a balaced budget. While three of the real estate sectors expectatios icrease i HRA deductio, removal of divided distributio tax (DDT) from real estate ivestmet trusts (REITs) ad boost to affordable housig by allowig 100% deductio o profits made by etities costructig them have bee addressed, there was o fiacial protectio offered to home buyers from project delays. Most first-time home buyers i major metros will be left out of the additioal Rs 50,000 tax exemptio aouced, as it is applicable oly o houses worth up to Rs 50 lakh with loas of up to Rs 35 lakh. This aoucemet will mostly beefit first time home buyers i tier-iii ad tier-ii cities. The ifrastructure sector was defiitely a major beeficiary. The biggest aoucemet with implicatios for the real estate sector i Idia was removal of DDT from REITs. REITs could become a reality soo - DDT got exempted, clearig a fial hurdle o the way of successful listig of REITs i Idia. A few listigs is expected to happe i the curret year itself, either by fiacial istitutios or developers. Curretly, aroud 229 millio sq ft of office space ca be see as REIT-compliat. If oe were to assume that eve 50% of these get listed, the there could be a total REITs listig worth USD 18.5 billio. Boost to affordable housig developers - 100% tax deductio has bee aouced for developers buildig houses up to 30 sq. mtrs. i four metro cities ad 60 sq. mtrs. i other cities, for projects approved betwee Jue 2016 ad March 2019, to be completed withi three years of the approval. Miimum Alterate Tax (MAT) will however apply to these udertakigs. Service tax will b e e x e m p t e d f o r h o u s i g costructio less tha 60 sq. mtrs. Digitisatio of lad records - There is a clear emphasis to make lad records more trasparet, which is a importat parameter that cotributes towards the overall trasparecy i real estate sector i Idia. The govermet will revive its atioal lad record digitisatio scheme with a fudig of Rs 150 crore. This iitiative is expected to icrease the overall trasparecy i real estate, ad will have positive impact o the real estate foreig capital iflows. Road ifrastructure ad ew lad opeig up - Approximately km. of road costructio per day has bee achieved by the middle of the curret fiacial year, to which Budget has adopted measures to sigificatly step up Natioal Highways Authority of Idia (NHAI) capabilities i this regard. Roads ifrastructure has great ifluece o real estate developmet, particularly with the ew lad it opes up for developmet through highways ad feeder routes. Ifrastructure creatio - The Budget has outlied revival plas for o - f u c t i o a l a i r p o r t s i partership with state govermets, with a visio to sped aroud INR crore o each airport to make them fuctioal agai. This will boost ifrastructure i may tier- II ad tier-iii cities, provig to be positive for these cities i real estate markets. A select few projects that are commercially viable with good ridership could pick up pace i the ear term. Release of lad - Goig by Budget aoucemets, Cetral PSUs are goig to be ecouraged to reduce t h e i r e x p o s u r e t o e x c e s s ladholdigs. While availability of lad for developmet is defiitely a costrait ad the Lad Acquisitio Bill is icreasigly difficult to implemet, a alterative route is to make use of lad holdigs of cetral PSUs, which has bee witessed i the railways budget, as well. Retail sector - The revamp of the Model Shops & Establishmet Act is a welcome move ad could help the r e t a i l s e c t o r c o s i d e r a b l y. Uorgaised retail could receive a fillip as smaller shops will ow also be give the optio of remaiig ope for all seve days of the week, like orgaised malls. While this will make the high street retail real estate propositio a bit more attractive, oe would have to wait ad see the implicatios from a labour market perspective. Office occupacy perspective - The Budget made a strog case for promotig start-ups i Idia with % t a x r e b a t e o p r o f i t s aouced for them for three years. I the recet past, oe has see successful start-ups (particularly i the techology ad e-commerce sectors) becomig big ad occupyig a commedable share i office space. As more start-ups get ecouraged to commece operatios, oe expects developers to offer more small m i x e d - u s e p r o p e r t i e s o r arragemets for sharig office space to cater to this segmet. 70 ON TRADE Jauary - March 2016

71 FIEO: Rural Credit, Iclusive Growth ad Icreased Ifrastructure Outlay to Trasform Idia Ajay Sahai Director Geeral ad Chief Executive Officer, Federatio of Idia Export Orgaisatios i t h a e m p h a s i s t o W Trasform Idia, the Uio Budget seeks to achieve this larger objective through farmers welfare / skills & job creatio, ivestmet i ifrastructure / fiacial sector reforms / goverace, ease of doig busiess with a focus o fiscal disciplie which iter-alia icludes: support to the agriculture sector with the help of effective ad hassle-free agriculture credit. The Govermet has reiterated its commitmet to iclusive growth. While large corporate ad busiess etities have a role to play, this has to be complemeted by iformal sector eterprises which geerate maximum employmet. There are some 5.77 crore small busiess uits, mostly idividual proprietorship, which ru small maufacturig, tradig or service o f w h i c h 6 2 % a r e o w e d b y SC/ST/OBC. These bottom-of-thepyramid, hard-workig etrepreeurs fid it difficult, if ot impossible ad a overall disbursemet target of 1,22,188 crore uder PMMY has bee allocated to PSBs (70,000 crore), RRBs (22,188 crore) ad Private & Foreig Baks (30,000 crore) for FY Besides, icreased outlays o both roads ad gross budgetary support to railways, by 14,031 crore, ad 10,050 crore respectively. Two cess implemeted i quick successio may add to cost of doig busiess ad impact maufacturig costs ad cosequetly Make i Idia campaig However, for busiess i particular the Krishi Kalya Cess (KKC) of 0.5% effective from Jue 1, 2016 whose output is ot chargeable i the hads of maufacturers with o correspodig chages i Cevat rule. Also, rules of service tax beig applicable to abatemet / valuatio / exemptio ad pealty beig applicable to KKC will add cost to maufacturig. Earlier, Swachh Bharat Cess implemeted from November 15, 2015 was either cevatable for service provider or maufacturer was also a cost impactig busiess. Both these cess implemeted i quick successio may add to cost of doig busiess ad impact maufacturig costs ad cosequetly Make i Idia. However, if GST will be implemeted at the earliest, absorbig such cess ad electroic refud will reduce trasactio cost as well. Exemptio from requiremet of furishig PAN uder sectio 206 AA to o residets has bee provided for persos etitled to receive ay sum or icome or amout o which tax is deductible uder chapter xvii B of the act [ effective from Jue 1, 2016 which earlier attracted a peal rate of 20% ] istead however a ew levy called the equalizatio levy of 6% is beig itroduced i the Fiace Bill, for specified services received or receivable by a o-residet ot havig permaet establishmet (PE) i Idia, from a residet i Idia who carries out busiess or professio. As a result the et effect is that the additioal 10% withholdig tax which had bee withdraw has bee replaced by a 6% levy still addig to cost of busiess. Icrease i busiess costs for exports ad imports - Addig of service tax chages i trasportatio by vessels [sec 66 D sub sectio p II] ad support services uder Sec 66 D subsectio A IV also taxable amedig earlier otificatio 30/2012 Service tax chages i trasportatio by vessels [sec 66 D sub sectio p II] trasport by vessels from outside Idia ito Idia has bee deleted from egative list effective Jue 1, 2016 ad amedig mega otificatio etry 53 where aircrafts are exempted ad vessels are liable to service tax. For exports also it would be chargeable but ca be refuded added to blockage of workig capital. Further, support services icludig those provided by cotaiers would be leviable (although abatemet of 40% is provided) with amedmets i Sec 66 D subsectio A IV addig to busiess costs for exporters impactig busiess. However, it is to be see, up to what extet the service providers pass o CENVAT beefit to service seekers. Idia s merchadise exports declied 10.5% o a year-o-year basis i value terms till Jauary 2016 with cosistet fall i volumes Decliig exports both i value ad volumes has bee a cocer. Till Jauary 2016, exports have show a cosistet fall for the last 14 moths ad the declie is attributed ot oly to value but i volume terms as well ad o-petroleum product exports i Jauary, totaled US ON TRADE Jauary - March

72 $19.12 billio, about 10.5% dow from a year ago. Several maufactured goods idustries reported this declie. Egieerig goods exports fell by more tha a quarter, textiles by 6.1% ad leather by 12.1% ad calculatios show that eve volumes fell 0.4% i Jauary oly o merchadise trade stood at 38 per cet i compared to 28 per cet i The recovery of Idia's services trade i the aftermath of 2008 global fiacial crisis has bee tepid, with the CAGR of (H1) of The impact of the global slowdow o services exports is evidet. To that extet, the Fiace Bill 2016 proposes to reduce the MAT rate from existig18.5% to 9% i case of ew uit established o or after April1, 2016 i IFSC, provided such uit derives its icome solely i covertible foreig exchage which will eable ivestmets i the services export sector ad boost exports. More measures to address the declie; reduce costs; marketig support are required to support merchadise exports as agaist the preset support grated i terms of icetives which is less tha 1% of exports after fallig 0.2% i December. Durig , Idia s export performace coformed to the average ad its share i world exports stayed i the rage of 1.5%, while its share i developig coutries exports remaied uchaged at 4%, the preset fall is uprecedeted ad eeds to be addressed immediately. Reductio i MAT from existig 18.5% to 9% i case of ew uit established o or after April 1, 2016 i Iteratioal Fiacial Services Ceter (IFSC) may boost ivestmets ad exports from services sector O the other had, services exports have bee a dyamic elemet of Idia's trade ad globalizatio i recet years. WTO data shows that Idia's services exports grew from US$16.8 billio i 2001 to US$155.6 billio - which costitutes 7.5 per cet of GDP i 2014, makig the coutry, the eighth largest services exporter i the world. The share of Idia's services exports as compared globally is 3.2 per cet i 2014, which is early double its share of merchadise exports globally at 1.7 per cet. The overall opeess of the ecoomy reflected by total trade icludig services as a percetage of GDP shows a higher degree of opeess at 50 per cet i compared to 38 per cet i The opeess idicator based services exports i the post-crisis period at just 7.5 per cet compared to 30.1 per cet i the pre-crisis period. I the case of services imports, the CAGR fell from 23.6 per cet i the pre-crisis period to just 6.5 per cet i the post-crisis period. With ucertai global coditios ad weak exteral demad cotiuig to hamper Idia's services exports, they grew margially i to 4.1 per cet from 4.0 per cet i the previous year. The sluggishess i services exports is much more discerible sice the secod half (H2) of with a 3.7 per cet growth which decelerated further to 0.7 per cet i the first half No. Exports Promotioal Schemes 1 Vishesh Krishi ad Gram Udyog Yojaa 2 Focus Market/Focus Product/ Market liked Focus Product Scheme Deferred paymet of duty for exporters - duty drawback wideig ad deepeig are positives which may helpd merchadise export busiess but details pedig otificatios ad more measures to address the declie; reduce costs; marketig support are required to support merchadise exports as agaist the preset support grated i terms of icetives which is less tha 1% of exports (Rs crore) (Rs crore) (Rs crore) (estimated) Iterest Subvetio Market Access Iitiative (i) Market Developmet Assistace (DOC) (ii) Market Developmet Assistace (MSME) TOTAL 10, , , Idia s Export 16,34,319 19,05,011 18,97,026 8 Icetives as a % of Exports 0.63% 0.75% 72 ON TRADE Jauary - March 2016

73 Perspective: Mixed Bag for Techology ad Services Sector asscom welcomed the Uio NBudget , while termig it as a mixed bag for the sector. The budget reiterates the 7.6% GDP growth rate for the coutry ad provides a slew of icetives for the rural, agricultural sector to eable iclusive growth. The aual budget proposals set the policy directio for the coutry ad Budget 2016 does articulate the e m p h a s i s o a c c o u t a b i l i t y, trasparecy ad goverace. However, agaist the backdrop of global ecoomic volatility, there are umet expectatios o policy aoucemets that eable ease of doig busiess for the sector. Nasscom cotiues to work with the govermet to address procedural issues that impact the sector. Some of the geeral reactios are: Clarificatios ad simplificatio - boost for busiess eviromet, but more eeded Extesive Techology adoptio i goverace - step i right directio Startup Idia actio pla - caveats could be the dampeer, eed more boost Mr. Moha Reddy, Chairma, NASSCOM said Our wish list for Budget 2016 icluded three key priorities policy bottleecks icludig ease of busiess; urturig start-ups, products ad ecommerce sector; ad clarificatios o trasfer pricig to eable iward ivestmets i Idia. Budget 2016 oly partially covers these priorities. Extesio of Sectio 10AA for SEZ uits till 2020 is a positive outcome though the impositio of MAT o startups will ot allow the full impact of the beefits to be realized. Mr. R. Chadrashekhar, Presidet, NASSCOM said, The fiace miister s speech had a strog emphasis o leveragig techology to trasform Idia. The iitiatives aouced today combied with swift implemetatio of Digital Idia will help to digitize Idia ad provide effective citize services. We would urge the govermet to move forward at a swift pace ad build a effective PPP model. Key aoucemets Suset date for Sectio 10AA of SEZ Act exteded till This will eable techology uits to set up ad commece operatios i SEZs Place of Effective Maagemet deferred by 1 year: A key task to p r o v i d e a o p p o r t u i t y f o r deliberatios ad address cocers o the provisios Sectio 80 JJAA ow applicable to services compaies as well, is a boost for Busiess Process Maagemet (BPM) compaies who have bee at the forefrot of creatig employmet Extesive emphasis o techology adoptio by the govermet across small ad midsize busiess (SMBs), lad record moderizatio, Aadhar adoptio, procuremet platforms etc. Startup Idia aoucemet of 3 year icome tax exemptio welcome, though cotiuig MAT impositio a dampeer Holdig period for ivestmet i ulisted compaies to qualify for log terms capital gais tax reduced from 3 to 2 years. Nasscom recommedatio was for 1 year i lie with ivestmets i listed shares High Level Committee chaired by Reveue Secretary to oversee fresh case where the assessig officer proposes to assess or reassess the icome i respect of idirect t r a s f e r s b y a p p l y i g t h e retrospective amedmet Sectio 206AA ameded to esure Tax Deducted at Source (TDS) shall ot be deducted at a higher rate i case of oresidets ot havig PAN, a s p e r t h e D o u b l e Ta x a t i o Avoidace Agreemets (DTAA) provisios Iterest rates o delayed paymet of duty / tax across all idirect taxes beig ratioalized at 15%, with some exceptios Clarity o full CENVAT credit for iput services exclusively used i taxable output streams DTAA beefits of reduced or NIL withholdig tax for paymets made to o-residet ivestors by Alterative Ivestmet Fuds (AIF) (category I ad Category II) restored, ad 10% withholdig removed BEPS actio pla - Coutry-by- Coutry Report ad Master File applicability from April 1, 2017 Equalisatio levy o cosideratio for ay specified service received or receivable by a perso, beig a oresidet. Specific service curretly i c l u d e s o l i e a d d i g i t a l advertisemet Key proposals ot addressed Removal of dual levies o software products Domestic ivestors cotiue to face higher tax rates - agel taxatio, higher log term capital gais tax Revisio of criteria to carry forward losses to allow for capital ifusio i busiess ot cosidered Trasfer pricig issues related to safe harbor margis, advace pricig agreemet (APA) roll back rules ot otified Ratioalisatio of tax structure awaited. So far aouced for ew uits i maufacturig set up o or after March No roadmap o MAT ad differet cess ratioalizatio R&D credits ot applicable for techology sector, lowerig of deductio rate ot coducive to ecouragig techology R&D Clarificatios ot provided o place of provisio of service rules ON TRADE Jauary - March

74 Odisha Acquires Startup Culture Amrita Sabat, MD, Sabat Exports Private Limited disha is richly edowed with Omierals, havig a 480 km log coastlie, spledid architecture, c u l t u r e a d s c e i c l a d s c a p e. Coectivity betwee its hiterlad ad ports ad across the districts (especially by road) has also bee majorly boosted over the years. As such, Odisha provides a holistic base for idustrial growth. It is a atural maget for ivestmets ad has th recetly bee raked as the 7 best i World Bak s Ease of Doig Busiess report. This has bee best exemplified by the mushroomig umber of startups across the State. Startups i Odisha have come up i varied sectors such as Iformatio Techology (IT), IT-eabled services (ITeS), commuicatios, agriculture, food processig (a major chuk beig marie food), evet maagemet, hospitality, food ad healthcare. There are may reasos for this. Bhubaeswar, the Temple City ad capital of Odisha is also a educatioal hub, havig worldclass techical, medical, scietific ad maagemet educatio, ad research ifrastructure like IIT, AIIMS, CIPET, IMMT, NISER, XIMB ad may more. These istitutios ad others across Odisha like NIT Rourkela ad IIM Sambalpur are providig coducive eviromet for lauchig of start-ups. Etry of other iteratioal ad atioal startups operatios i Odisha like Uber, AirBB, Ola, OyoRooms, Meru, Flipkart ad FoodPada are themselves actig as triggers to the startup culture of Odisha. Successful startup etrepreeurs both from the State ad outside are actig a s r o l e m o d e l s f o r t h e y o u t h. Uderstadig the value of selfemploymet ad etrepreeurship, the youth are willig to ethusiastically take busiess risk ad are icreasigly beig b a c k e d b y s u p p o r t i v e f a m i l y eviromet, which otherwise was lackig till a few years ago. Odisha s cosumerism culture is also expadig ad givig way to a fast-maturig customer base which is willig to experimet ew cocepts ad ideas. The state govermet is also doig its bit to promote etrepreeurship amog youth by lauchig a dedicated scheme called Odisha Youth Iovatio Fud. Recetly, it has released a draft Startup Policy 2016 with the missio to build a holistic startup ecosystem i Odisha to eable the State to become oe of the top three startup destiatios of Idia. Alogwith this, a growig etwork of veture capitalists ad ivestors are gettig coected to Odisha through The Idus Etrepreeurs (TiE) ad other agel ivestor etworks. Lauch of global trade promotig bodies such as World Trade Cetre Bhubaeswar ad local chapters of FIEO ad CII are helpig i kowledge dissemiatio ad ispirig startups to flourish. The biggest boost to the startup culture i Odisha is that may schools, colleges ad higher educatioal istitutes are holdig startup meets, startup weekeds ad metorig programmes. Startup icubators i istitutios such as KIIT ad XIMB are also helpig lauch successful startups. Exposure to the global markets, comparatively lower operatioal costs, proximity to best educatioal ad research istitutios, better iformatio ad coectivity ifrastructure make Bhubaeswar, a startup paradise. The startup, Sabat Exports Private Limited, icorporated o May 11, 2015 i Bhubaeswar, was fouded with the aim of promotig the best of Odisha hadicrafts, hadlooms, silver filigree jewellery ad orgaic spices aroud the world. A lot of iovatio has goe ito the desigs of its traditioal products ad the compay has also created ew products with global appeal. Startig as sellers with the biggest olie marketplaces i Idia, the compay has goe o to successfully market the best of their products at five iteratioal trade fairs (three at Sigapore, oe each at Chia ad Australia) ad World Spices Cogress 2016 at Ahmedabad i Gujarat. Earlier, Odisha s ame was Utkala (short for Utkarsha Kala or Lad of Excellet Arts). The time has come for Odisha to be kow worldwide for its taleted ad hardworkig artisas, farmers ad craftsme. The scope is ulimited. There is a eed for thousads of start-ups to come up i Odisha, for every sector to flourish ad their true potetial to be reached. Challeges alog the way have to be overcome, whether it is i fidig reliable, timely suppliers, reachig out to the right buyers, get fudig, talet sourcig ad scalig up. The start-ups cotiue to pursue their course, despite these hurdles, showcasig their mettle as etrepreeurs of Odisha. No woder, the start-up culture is oly spreadig throughout the State. All that is further eeded is executig ad deliverig a defiitive, collaborative ad actioable pla by the govermet, established busiess houses ad educatioal istitutios. They could have projects already commissioed, creatig m o r e b u s i e s s i c u b a t o r s a d accelerators, settig up ifrastructure such as airports ad ports coectivity, cotaier shipmet ifrastructures, shared office spaces, warehouses ad food parks. Sigle-widow clearaces ad expadig etworks for atioal ad global ivestors ad veture fuds are all available to make it attractive for ivestors to visit, realise ad take steps to optimally exploit the great potetial of this fast-growig State, through a breed of etrepreeurs rarig to take the world by storm. 74 ON TRADE Jauary - March 2016

75 A Goa Woma Etrepreeur with a Differece With a few iitial glitches i her ewly setup busiess, Ms. Varsha M. Pai Raiker, S. R. Eterprises through a iterview, provides ample advice o how to set up a busiess, maitai it ad keep it goig. She also shared the hurdles she faced i makig her busiess a successful veture. Through her sheer perseverace she has show the path to coutless wome i Idia who aspire to be etrepreeurs. Whe did you start your etrepreeurial veture? I started as a etrepreeur i What igited the spark i you to start a ew busiess veture? I was assistig my husbad i his busiess. I always thought of startig a ew veture o my ow. I came across the Mahila Udyog Nidhi Scheme of SIDBI. I foud it to be very attractive ad also by this time I had made up my mid to start a packagig uit. Could you implemet your idea immediately or did you have to face delays ad/or hurdles? The delay was oly because of the allotmet of a shed provided by Goa IDC. Otherwise most of the other thigs such as procuremet of machiery, sourcig of raw material, mapower etc. was maaged as per schedule. Eve processig of loa was withi the stipulated time. How did you overcome the hurdles? You eed a lot of patiece, perseverace ad determiatio. Wherever the bureaucracy is ivolved i the govermet, uless you have patiece ad will to execute the job, it is virtually impossible to make thigs happe. Why did you choose the product/service you opted for? The choice was obvious. Whe I was workig with my husbad s uit, I was watchig the sourcig of raw material, Busiess, although a risky propositio is o loger so if it is rus o a professioal basis ad with a scietific approach. packagig etc. The packagig, although it was dow the lie item, was a very crucial iput. Without it the fiished items would lie upacked ad occupy valuable floor space. So the time boud supply ad also quality of packagig product was a very importat aspect. The productio would suffer ad also the commitmet of timely supply would falter. Therefore, if you could deliver the goods i time ad maitai its quality, the market would offer you eough opportuities. Durig this period the idustrial sector was also opeig up i Goa. New uits especially pharmaceuticals were settig up their maufacturig facilities i Goa. So the opportuity was there. How log did it take for the veture to stabilize? I was lucky i the sese that I had readymade market to begi with. The machiery maufacturer was a family fried who helped me i gettig my key me traied by the time the uit was takig shape. They were ready whe the machiery was istalled. I had doe my homework ad set proper achievable deadlies for settig up the uit. The moey is a very importat factor ad I had take adequate care to see that the loa was sactioed i time by providig the ecessary papers. It is very importat to pla ad implemet your project. I could implemet the schedule ad go ito productio withi six moths of plaig. What challeges did you face i the followig areas ad how did you solve them? Marketig: As I metioed earlier the marketig was much easier as I had ON TRADE Jauary - March

76 udertake a market survey ad uderstood the eeds of the customers. My simple appeal to them was that they were growig at a rate of 7 to 10 %. So I asked them to give me a c h a c e t o s u p p l y t h a t additioal eed so that they would ot disturb their existig structure. All of them appreciated this ad gave me their orders. Secodly, the ew uits eterig the field were tapped ad so bega my jourey. Maitaiig the quality ad time schedule has helped me retai my cliets till today. Fiace: Fiacial maagemet is the key to success of ay uit. I could get the loa at a lower rate uder the Mahila Udyog Nidhi Scheme of SIDBI. This helped me to keep my outgoigs low ad also keep a tight cotrol over expediture ad timely recovery, which were other factors. I paid my loas withi the stipulated time period which helped i the growth of the uit. Huma Resource: Huma resource was traied i-house ad o the job. The boys ad girls who came from earby villages were kee learers ad the uit was o track, withi o time. I do ot thik that there is a fixed pla or formula for becomig a successful etrepreeur. The eed is to have a focused pla ad the will to implemet it agaist all odds. W h a t h a v e b e e y o u r setbacks ad what have you leart from them? There are always ups ad dows i busiess. Oe has to b e p r e p a r e d f o r a y evetuality. However, the dagerous oes are those caused by fiacial deficiecies. Oe has to be very alert for these pitfalls. Whe the credits go beyod a certai limit, it is time to pull up your socks. I had to face bad times whe creditors delayed paymets or defaulted. All my profits were wiped out because of this ad eve the cliet base was reduced. A lot of my time was spet o recovery ad brigig the uit back o track. It took aother three years for this to happe. The lesso was leart the hard way, but it helped me to become what I am today. If you had the chace to start your busiess all over agai, what would you do differetly? I would like to brig i professioalism right from day oe. The growth pla would be i place, measured ad reviewed at regular itervals. This would help to take corrective steps at the right time. Busiess meas pure professioal give ad take. It caot be based o sympathy factor. At times harsh decisios eed to be take i the iterest of the compay. Techology: Techology was provided by the machie maufacturer. Besides, my key ma was set for traiig to a istitute i Cheai ad also atteded a short-term course at the Idia Istitute of Packagig at Adheri, a suburb of Mumbai. Govermet Procedures: Govermet procedures were although very cumbersome, I was fortuate to get help ad guidace from my husbad. I persoally wet to all departmets i the govermet to obtai the ecessary clearaces. This gave me tremedous cofidece ad ability to move o with the project. Ca you metio ay other specific challege you faced ad overcame? The challeges were may. I Goa we have o raw material bak ad hece we have to pla i advace. Sudde orders put you out of gear, but you have to maage somehow. Iitially sourcig raw material was a big problem. It took almost three years to stabilize this part of the process. Secodly, i those days stable power supply was ot there ad therefore productio schedules ofte disrupted. Very ofte we were forced to work till late i the day ad eve o holidays to keep our supply commitmets ad maitai good relatioship with the cliets. It was hard work all the way. However, to my good luck most of my workers were very loyal, hoest ad committed to help me achieve all this. Did you at ay poit feel like quittig the busiess? Why ad what kept you goig? Iitially whe the uit s fiaces were bad, I had half a mid to quit. It would be like ruig away from the battlefield. I had commitmets o several frots, fiacial istitutios, suppliers, customers, myself ad above all to my workers who had ivested prime time of their life i the uit. This made me go ahead with more determiatio. I wet ahead with all the ammuitio at my aid. I eve had to file court cases for recovery agaist some cliets. At this poit, I made a coscious decisio to delete fly-by-ight operators ad short-term players from my cliet list. New corporate cliets were added after a lot of hard work. Lookig back, I ca say that all these trials ad tribulatios gave me a steely resolve to succeed ad taught me the fier poits of ruig a busiess. What would you say are the top three skills eeded to be a successful etrepreeur? The will to succeed ad be focused to your goal, be determied ad keep perseverig ad lastly be patiet. Is the motivatio to drive the busiess ow, ay differet from what it was whe you started the busiess? Everyday throws up a differet challege ad chage is costat. Oe has to be prepared to adapt to chagig scearios to survive. Hece, it is ecessary to be motivated all the times. If you are ot motivated, how ca you lead the team ad make 76 ON TRADE Jauary - March 2016

77 Busiess meas pure professioal give ad take. It caot be based o sympathy factor. At times harsh decisios eed to be take i the iterest of the compay. them deliver. I feel I am as motivated today as whe I started the busiess. What are the doubts ad fears that a etrepreeur faces whe he take a risky decisio? How does he hadle the fear? The biggest fear ayoe faces while takig a big decisio is of failure. Exercisig abudat cautio while takig a major decisio is absolutely ecessary. Busiess, although a risky propositio is o loger so if it is rus o a professioal basis ad with a scietific approach. You eed to be ready for chages or eve i some cases a diplomatic retreat i order to gai i the future. It is ofte said that i busiess you should be ready to loose a argumet but beefit by clichig a sale. I persoally feel that ay decisio big or small should be take at ease after studyig the pros ad cos ad formig a well thought out strategic pla. Should somethig go wrog it is ecessary to apply corrective measures immediately. For this it is ecessary to regularly review the subject. Accordig to you what is the defiitio of success? Though i Idia profit was oce cosidered to be a dirty word, the ultimate defiitio of a successful busiess is profit. To what do you most attribute your success? What would you say are the five key elemets for startig ad ruig a successful busiess? I would attribute my success to hard work, hard work ad more hard work. It is the ultimate key to success. At the same time it is also ecessary to keep a tab o the market. Periodic evaluatio of your ow work is also ecessary. Further, customer satisfactio is a corerstoe for ruig a successful busiess. The smallest complait comig from the customer eeds to be atteded to keep him happy. The five key elemets for startig ad ruig a successful busiess would be: Hard work Adaptability to chage Patiece Fiacial disciplie Public relatios Do you believe there is some sort of patter or formula to become a successful etrepreeur? ecessary. Most of the busiesses fail because of lack of fiacial disciplie. Very rarely does a uit show profit i the iitial years. So it is wise to avoid the frills ad ejoy the beefits oce the uit is profitable. What has bee your most satisfyig momet i your busiess? What busiess achievemet are you most proud of? There are may satisfyig momets I ca recall. Gettig complemeted for good quality supply ad receivig a award for beig most outstadig ad reliable vedor from two of my FMGC ad MNC customers was very satisfyig. Repayig all the loas o time ad the year the uit posted a profit are cherished memories. The most satisfyig momet was whe I received the Natioal Award for successful Wome Etrepreeurs at the hads of Presidet Shakar Dayal Sharma at New Delhi i the year I was also felicitated by the Goa Small Idustries Associatio at the hads of Shri Abid Hussai, Advisor to Govermet of Idia o Idustry, i the year Where did your orgaizatio's fudig ad capital come from ad how did you go about gettig it? How did you obtai ivestors for the veture? The term loa was sourced from the state fiacial istitutio. It was sactioed uder the scheme Mahila Udyog Nidhi. The cash credit facility was obtaied from a Natioalised Bak, local brach ad the margi moey was from my ow savigs. At this poit I would like to poit that my chartered accoutat played a major role throughout i guidig me ad givig his valuable iputs from time to time. What advice would you give to those who wat to become etrepreeurs? Veture ito a field you are comfortable i ad coduct a idepth study of all the aspects of busiess. Prepare a detailed project report ad also have a pla of actio ad implemetatio schedule. Have a backup pla to take care of ay evetualities. Very ofte we see that SSIs beig a oe ma show, the paper work ad govermet clearaces get eglected. It is imperative that all documets are i order to avoid further delays ad hassles. Obtai a good workig kowledge of the fiacial aspects of the uit ad always maitai a tight cotrol over it. Take immediate corrective steps if ecessary, as fiacial idisciplie will sed the uit ito red i o time. I do ot thik that there is a fixed pla or formula for becomig a successful etrepreeur. The eed is to have a focused pla ad the will to implemet it agaist all odds. Besides, maitaiig a strict fiacial disciplie is absolutely ON TRADE Jauary - March

78 Implicatios of EU-Idia Migratio Chimay Tumbe Assistat Professor, School of Public Policy & Goverace, Tata Istitute of Social Scieces Hyderabad dia imagiatio of cotietal IEurope has bee heavily iflueced by ciematic depictios ad tourist coversatios. For istace, followig the release of Zidagi Na Milegi Dobara i 2011, a high profile film shot i Spai with a govermet tie-up, there was a substatial icrease i Idia tourist arrivals i Spai ad special packages were arraged for the La Tomatia festival that was depicted i the film. The popular discourse treats cotietal Europe primarily as a tourist destiatio ad thus, the regio does ot figure high i migratio policy agedas that obsess over the Gulf coutries ad the US as they accout for over 70% of the 14 millio strog Idia emigrat stock. Yet, over the past decade people mobility betwee Idia ad the Europea Uio (EU) coutries has grow substatially beyod tourism, with Europe ow hostig over oe millio Idias. The Uited Kigdom (UK) cotiues to attract the major share of Idias for historical ad liguistic reasos but ew destiatios have emerged. Italy, with over a hudred thousad Idias, maily draw from Pujab ad workig i the agricultural sector is a recet draw. The migratio of techology, health professioals ad studets to coutries such as Germay, Frace ad Irelad, is also a recet pheomeo. Belgium hosts may Idias as Atwerp forms the lichpi of the iteratioal diamod trade of which Idia is a importat participat. Idia-EU mobility is coditioed by the fact that Idia is a populous ad dese coutry experiecig a demographic divided with a favourable worker depedecy ratio ad Europe is udergoig a demographic deficit whereby ageig populatios have led to gaps i the labour market i particular age groups ad sectors. Idia migrats i the EU ca secure gaiful employmet ad the remittaces they sed back, estimated to be close to $ 10 billio from the EU, is a boo for Idia. EU coutries gai through immigratio as it fills their labour requiremets, boosts local cosumptio through migrat spedig, keeps a check o wages ad promotes export competitiveess. Idia migratio to the EU is a wi-wi situatio for both regios but is complicated by the reality that the EU gives preferetial treatmet to migrats withi its borders ad that migratio policies ad laws have ot kept pace with growig ecoomic ties ad migratio flows betwee the two regios. Idia emigrats complai about the covoluted process of obtaiig secure work permits, high visa costs, limited prospects of obtaiig citizeship, the hardships faced by spouses i gaiig access to labour market ad i some cases, the treatmet of double-taxatio. The stadard chaels of EU visa orms such as the Blue Card Scheme for skilled professioals are ofte out of reach for may Idias. At the other ed, Europea authorities complai about visaoverstays, misuse of itra-compay work permits obtaied by Idia firms ad i the case of uskilled migratio, isecure trasit routes that fall uder the ambit of illegal migratio. Despite, multiple rouds of egotiatio at EU- Idia ecoomic summits ad a special dialogue o mobility, there has bee little improvemet o the groud for Idia emigrats. The focus of the Miistry of Overseas Idia Affairs has bee o the traditioal destiatios of Idia emigrats i the Gulf regio with a belated recogitio of the sigificace of the EU regio. After the recet migratio ad asylum crisis i Europe, prospects of a major breakthrough i EU-Idia mobility relatios appear extremely dim. This is ufortuate as the gais from streamlied processes i labour mobility gai, geerate tremedous ecoomic beefits for both Idia ad the EU. A begiig ca be made i the realm of short-term mobility which evades the more cotetious issue of citizeship. Short-term migratio should be simple i terms of visa permits, iexpesive ad have a optio for spouses to access the destiatio coutry labour market. This would ecourage a healthier form of emigratio for both low ad high-skilled people ad could form the basis for future improvemets i EU-Idia mobility relatios. It could also provide a stimulus to the Startup Idia iitiative as a lot of etrepreeurial ideas ad icetives could circulate betwee Idia ad the EU, a regio well kow for iovatio. 78 ON TRADE Jauary - March 2016

79 Recalibratig Idia Defece Trade with Russia Amit Cowshish Distiguished Fellow, Istitute of Defece Studies ad Aalyses ad Parter, Dua Associates, Advocates ad Solicitors, New Delhi Disitegratio of the Soviet Uio i 1991 disturbed the mometum of defece trade, albeit mostly uilateral, that had bee buildig up sice the Ido-Soviet Treaty of Peace, Friedship ad Cooperatio of By that time, however, Idia s military ivetory had acquired a distictly Soviet mark. From taks, aircraft ad submaries to ammuitio ad missiles, the military parapheralia was either directly imported from the erstwhile Soviet Uio or licese-produced by the Idia defece public sector udertakigs (DPSUs). Thigs have chaged rapidly i the past few years. The Uited States of America has emerged as the largest exporter of arms to Idia with Frace ad Israel makig, or poised to make, sigificat iroads ito the lucrative Idia defece market. Moscow s offer of Mi-35 attack helicopters ad Sukhoi-35 fighters to Pakista is a reflectio of the chagig times. However, Russia sees it differetly. "I do ot thik that the cotacts uder discussio will cause jealousy o the part of ay of the two sides," Russia Deputy Foreig Miister Ryabkov had told jouralists i September He was right i sayig that. There is o reaso why Idia should be miffed about the Russia offer to Pakista. Russia has to explore ew markets to sustai its two millio plus workforce employed i the military idustrial complex. More importatly, if the US-Pakista defece cooperatio over the past half-acetury has ot come i the way of the recet spurt i Idia s defece purchases from the US, there is o reaso why Russia s offer to Pakista should be a major issue. Prime Miister Modi s visit to Russia i December 2015 ideed, idicates that both the coutries accept the ew groud realities ad have decided to move o. Eve with reduced volume of defece sales, Idia defece market offers greater opportuities to Russia tha a fiacially ustable Pakista. Idia is poised to sped aythig betwee USD 150 to 250 billio i the ext oe decade o capital acquisitios. This should be of iterest to Russia as much as it would be i Idia s iterest to esure that defece cooperatio with Russia remais o track. A sizeable proportio of Idia s ivetory is of Soviet / Russia origi. This will remai i service for the ext 25 to 30 years, if ot more. This, i itself, ca sustai defece cooperatio betwee the two coutries. It is but obvious that this is ot what both coutries are lookig forward to. There are quite a few ew purchases uder cosideratio. Idia is i the process of iductig a total of 272 Su-30MKI aircraft by A Iter-Govermetal Agreemet (IGA) has bee siged to licese-build 200 K a m o v K a T L i g h t U t i l i t y Helicopters (LUH) to replace the curret fleet of obsolete Chetak ad Cheetah helicopters. The Defece Acquisitio Coucil (DAC) has accorded approvali-priciple to buy five uits of S-400 Triumf Air Defece Systems from Russia. N e g o t i a t i o s f o r t h e F i f t h Geeratio Fighter Aircraft have bee revived ad talks are reportedly also o for the lease of a secod Akula class uclearpowered attack submarie, p r o c u r e m e t o f A d m i r a l Gregorovich-class stealth frigates ad upgradatio of a certai umber of Su-30MKI - just to metio a few projects. The paifully slow pace of such talks ad the upredictability of the tederig ad cotractig procedures must, however, be discocertig for the suppliers as much as it is for Idia to cotiue to rely o imports which, goig by some estimates, accout for close to 65 per cet of all procuremets. This does o good to Idia s image. While it is for Idia to address these problems by reformig the procuremet policy ad procedures, Russia, as ideed other suppliers, also eed to address Idia s cocers. ON TRADE Jauary - March

80 I the case of Russia, the biggest cocers are i regard to ucertaity about reasoableess of price, glitches i trasfer of techology for licesed productio i Idia, cost ad time overrus, quality, erratic supply of spares, maiteace, repair ad upgradatio of Russia equipmet. These factors ot oly impact ew purchases but also the operatioal serviceability of existig ivetory. Be that as it may, the ogoig talks for ew procuremets / upgradatio ad maiteace of the Russia-origi ivetory provide huge opportuities which ca be exploited to mutual advatage if both the sides create a ew framework for egagemet based o recogitio of mutual cocers. To begi with, more ad more projects eed to be udertake through the IGA route which, i comparative terms, is faster tha the ormal procuremet procedure evisaged i the Defece Procuremet Procedure. T r a s f e r o f t e c h o l o g y a d reasoableess of price are of essece i such agreemets. Russia will eed to develop some mechaism to assure Idia o both these couts. All ew purchases must be accompaied by a durable arragemet for life-cycle support. The possibility of workig out performace based logistical (PBL) support arragemet, whereby Russia guaratees the desired level of serviceability of equipmet for a price, ca be cosidered for ew purchases as well as the existig ivetory. Of course, these arragemets will have to ivolve the Idia etities. Idia ad Russia eed to idetify the areas for joit research, developmet ad subsequet productio of equipmet through Special Purpose Vehicles (SPVs) / Joit Vetures. This should provide a big boost to R&D ivestmets i both coutries. Successful models like the BrahMos Aerospace could be replicated. Private sector will have to play a importat role i this edeavour. Presetly, there are o clear procedures for omiatig private sector etities as techology recipiets ad productio agecies. The experts committee set up by the govermet last year has recommeded a strategic partership model to forge log-term relatioship with Idia compaies, to be idetified by the Miistry of Defece (MoD) based o certai parameters. Cosiderig that a similar idea of creatig Raksha Udyog Ratas had come a cropper a few years back, the committee s recommedatio is fraught with ucertaities. It would be far easier if the Russia ad foreig origial equipmet maufacturers from other coutries are permitted to select Idia productio agecies of their choice from private ad public sectors rather tha such agecies beig omiated by the miistry. The lease of the secod uclear-powered submarie, similar to INS Chakra, seems to have ru ito rough weather because the Idia Navy wats a more advaced Yase-class submarie ad the two sides do ot seem to be able to agree o its price. The existig system of egotiatig the price, as also other terms ad coditios, eeds to be replaced by a better mechaism to exploit the full potetial of lease / purchase agreemets from Russia; this optio eed ot ecessarily be limited to uclear submaries. Idia is assiduously pursuig the policy of Make i Idia. I the defece sector, it i v o l v e s t h e c r i t i c a l f a c t o r o f idigeisatio. Russia is probably the oly P5 coutry which has supplied strategic platforms ad kowhow to Idia i the past. This ca provide a very basis for the future. It would be of immese help if a Russiaspecific strategy is evolved to address mutual cocers ad aspiratios. This would go a log way i brigig about a ew equilibrium i defece trade betwee Idia ad Russia. (The author was a former Fiacial Advisor (Acquisitio), Miistry of Defece.) 80 ON TRADE Jauary - March 2016

81 INDIA TRADE SHOWS TITLE LOCATION DATE SECTORS WEBSITE d 2 Smart Cities Idia Expo 2016 New Delhi May 11-13, 2016 l Urba Ifrastructure LED Expo Mumbai 2016 Mumbai, Maharashtra May 12-14, 2016 l LED Techology Idexpo Idore 2016 Idore Madhya Pradesh May , 2016 l Machiery Fasteer Fair Idia 2016 New Delhi May 19-20, 2016 l Fasteer ad Fixigs Idustry POWER-GEN Idia & Cetral Asia 2016 New Delhi May 19-21, 2016 l Power Geeratio Idustry Cocrete Show Idia 2016 Mumbai Maharashtra May 19-21, 2016 l Ifrastructure ad Costructio Idustry Sajeevai Medical Expo 2016 Luckow Uttar Pradesh May 27-29, 2016 l Equipmets l Medical Hospital Ifrastructure Palm Expo Mumbai Maharashtra May 26-28, 2016 l Pro-audio Music ad DJ idustry ON TRADE Jauary - March

82 INDIA TRADE SHOWS TITLE LOCATION DATE SECTORS WEBSITE No Wove Tech Asia 2016 Mumbai Maharashtra Jue 2-4, 2016 l Nowove Idustry Food Hospitality World Begaluru Karataka Jue 9-11, 2016 l Food & Hospitality Idustry ACMEE 2016 Cheai Tamil Nadu Jue , 2016 l Machiery ad Auto Idustry Heimtextil Idia 2016 New Delhi Jue 22-24, 2016 l Multifaceted Home ad Cotract Textile Desigs heimtextil-idia.i.messefrakfurt.com LOGMAT 2016 Cheai Tamil Nadu Jue 24-26, 2016 l Logistics Compack Cheai 2016 Cheai Tamil Nadu Jue 24-26, 2016 l Packagig Expo Beauty Spa Expo 2016 New Delhi Jue 27-28, 2016 l Iteratioal Beauty Trade Show 82 ON TRADE Jauary - March 2016

83 INTERNATIONAL TRADE SHOWS TITLE LOCATION DATE SECTORS WEBSITE CeBIT Australia Sydey Australia May 2-4, 2016 l IT ad Commuicatio Techology Desig Build Melboure Melboure Australia May 4-6, 2016 l Buildig ad Costructio l Architecture ad Desig Motreal Maufacturig Techology Show Motreal Québec May 16-18, 2016 l Metalworkig Techology Juwex New Russia Style Moscow Moscow Russia May 25-29, 2016 l Jewellery Idustry Hotel Show Ethiopia 2016 Addis Abeba Ethiopia May 26-29, 2016 l Hospitality ad Tourism Caadia Furiture Show Toroto Toroto Caada May 28-30, 2016 l Furiture l Iterior Decoratio Chemspec Europe 2016 Basel Switzerlad Jue 1-2, 2016 l Fie ad Speciality Chemicals Idustry ON TRADE Jauary - March

84 INTERNATIONAL TRADE SHOWS TITLE LOCATION DATE SECTORS WEBSITE Good Food & Wie Show Melboure Melboure Australia Jue 3-5, 2016 l Beverages l Facy Food Mir Stekla Moscow Moscow Russia Jue 6-9, 2016 l Glass Idustry Woodex for Africa Africa Johaesburg Jue 9-11, 2016 l Wood ad Wood Processig Idustry Fispal Cafe Sao Paulo Sao Paulo Brazil Jue 14-17, 2016 l Food ad Beverage Agritec Africa 2016 Nairobi Keya Jue 15-17, 2016 l Agriculture Fi Asia - Chia 2016 Shaghai Chia Jue 21-23, 2016 l Food l Nutraceutical idustries l Health l Pharmaceutical CIMES Chia Iteratioal Machie Tool & Tools Exhibitio Beijig Chia Jue 22-26, 2016 l Metalworkig ad Idustrial Automatio Techology 84 ON TRADE Jauary - March 2016

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