India remains a top Foreign Direct Investment Source for the United Kingdom

TDespite the uncertainties of Brexit and the corresponding meltdown in British politics, the UK economy remains resilient and continues to attract significant foreign direct investment (FDI). In fact, it remains within the top 5 most attractive destinations in a global economy which has witnessed a significant slowdown in FDI activities recently, partially due to the continued interest from both Indian businesses as well as high net worth individuals. Following the United States and Germany, India continues to be the third largest source for FDI into the UK in 2019.
 
According to the recently released 2019 Grant Thorton-CII tracker has Grant Thornton, 842 Indian companies are now operating in the UK, compared to 800 in the year before, generating cumulative revenues worth 48 Billion GBP annually and with the number of personnel close to 105,000.Data from the Department of International Trade suggests around 120 deals originated in India in 2017-18 which has led to more than 5000 new jobs while protecting around 500 old ones.
 
The manufacturing sector led the way with four deals and total investment into the sector reaching US $177 million.Indian disruptors and innovators continue to find the UK an attractive market due to the country’s leadership in areas such as Fintech, Health Tech, high-end advanced manufacturing and of course,creative technology – not to mention the fast-evolving energy and associated sectors. For example, Bharat Forge’s 10 Million GBP foray into the UK electric vehicle industry with its investment in Tevaa Motors.
 
It is also interesting to see homegrown Indian disruptors now taking on global giants in the cab hailing business as well as online travel/accommodation space respectively, with Ola and Oyo Rooms in the UK. The former has set out its initial services in Manchester and South Wales, while the later has entered into the UK hotel market in 2018, with aims to have properties in 10 UK cities by 2020. The UK energy sector was boosted by over $150 million (USD) Indian investment with EESL Energy acquiring Edina Power Services; and Aban Offshore Limited acquired a 100% interest in the United Kingdom Continental Shelf (UKCS) production licence P198.
 
Investments have not been limited to Indian businesses; a recent survey of high net worth Indian families and individuals demonstrated that almost 3 out of 4 felt that UK was the preferred destination for real estate investments. The close cultural relationships, the strong Indian intergenerational diaspora and UK’s technology prowess, backed by a stable legal and political structure, in addition to the opportunity to do business in English have ensured the British Islesremain an attractive destination for Indian money.
 
The relatively lower exchange value of the Sterling, from its pre-Brexit referendum, has also provided an impetus to foreign investors, including Indians, to proactively seek out investment opportunities in the UK.However, the Brexit uncertainty, the failure of the London Mayor to tackle the rising crime epidemic (especially knife crimes) in the city, along with the perception that UK wants Indian money and not Indians are threats that could easily undermine the attractiveness of the UK as an FDI destination.
 
India Outbound
May 31, 2019
 
 

source https://indiaoutbound.org/india-remains-a-top-foreign-direct-investment-source-for-the-united-kingdom/

"BJP’s second consecutive victory has made the 17th Lok Sabha elections truly historic in nature." #modisarkar2 #modiswearingin #OathCeremony https://t.co/ccPXdfu72A

"BJP’s second consecutive victory has made the 17th Lok Sabha elections truly historic in nature."#modisarkar2 #modiswearingin #OathCeremonyhttps://t.co/ccPXdfu72A

— India Outbound (@india_outbound) May 30, 2019

from Twitter : https://twitter.com/india_outbound

The potential invigoration of India-UK ties

India and the United Kingdom appear to be entering a new era multi-faceted cooperation, given the renewed vigor of the former’s economic growth trajectory and the latter’s impending exit from the European Union. Both countries have been historically linked with their shared commitments towards democracy, peace and stability. In addition to that, the relationship between both countries has been characterised by a vibrant range of educational, institutional, cultural and legal complementarities.
 
In the past five years, the Indian government has set in motion a multitude of programmes designed to boost the country’s economic growth and alleviate poverty. These include the Jan Dhan Yojana, the Make in India Mission, the Smart Cities Mission, the Digital India campaign and so on. The state has also attempted to improve the regulatory frameworks to encourage investments and businesses.
 
All these have opened up potential avenues of collaboration between the UK and India. These include the possibility of developing agreements of bilateral cooperation or a comprehensive economic cooperation agreement, which negate the sticking points underlying the success of India’s Free Trade Agreement with the European Union and broadens the scope of partnership. The UK could also relax the investment regime in the country in order to facilitate the mobility of high-skilled professional labour and consequent, fund inflows from India.
 
The UK needs to demonstrate to the world, especially India, its commitment towards attracting the best global talents and businesses in a post-BREXIT scenario (education, work permits, regulations, visa etc.) Within this context, the Confederation of Indian Industry (CII) is positive that BREXIT offers positive opportunities of engagement for India. The 2019 Grant Thorton-CII tracker has highlighted that Indian companies employ almost 1,05,000 people, thereby, busting the flawed perception that India is stealing jobs.
 
Another aspect of the changing relations between UK and India is the latter’s rapid progression towards a knowledge-led and knowledge-driven economy, grounded in the Indian proclivities towards frugal innovation, technological solutions and entrepreneurship. Within this context, UK could contribute immensely with its leadership in designing systems related to infrastructure, e-governance, data analysis, innovation and technology.
 
Given that Prime Minister Modi holds a positive outlook towards India-UK relations, coupled with the fact that enterprises of both countries have vested interests in the consolidation of deeper economic synergies, India and the UK could potentially develop multiple policy and trade instruments to address the development needs of the former and business needs of the latter, with widespread implications for the bilateral economic relations.
 
India Outbound
May 29, 2019
 
 

source https://indiaoutbound.org/the-potential-invigoration-of-india-uk-ties/

The economic challenges facing Modi 2.0

Since its inception in 1951-52, the sheer size and scale of the Indian General Elections has rendered it the biggest display of the democratic and electoral process. But BJP’s second consecutive victory has made the 17th Lok Sabha elections truly historic in nature. While 2014consolidated BJP’s foothold in the Hindi heartlands, diminishing the stature of the Congress,the mammoth victory of the BJP in 2019 established the party’s hegemony. In addition to retaining its traditional bastion, the party has also made significant strides in states such as West Bengal, Orissa, Telangana and Karnataka.
 
The stellar mandate reflects the endorsement and acceptance of the Indian voters, for Modi’s government and performance across multiple sectors. However, in order for the development of the country to be truly inclusive, as reiterated by Prime Minister Modi himself, significant changes need to be brought about, across various domains, including on the economic front.
 
The current economic scenario is such that the country is facing headwinds in multiple forms: slowdown in consumer demands across rural and urban areas, liquidity crunch in the non-bank lending sector, falling investments due to lack of investor confidence as well as the need to boost exports in the face of global economic turbulence.
 
If the stock market is assumed to be a barometer for gauging the mood of the country, then the markets were definitely euphoric, post the results, which signify continuity in reform and stability. But, once the euphoria is settled, a prime challenge for the Modi government will be the consolidation of his economic team. With the credibility and independence of institutions like the RBI and the Central Statistics Office under attack, it is imperative that the government takes the requisite steps to strengthen their institutional integrity.
 
Importantly, despite the projection of a strong economic outlook with 7.5% growth in the first quarter of FY 2019, as per a World Bank report released in January 2019, a recent report by the UN’s Economic Analysis and Policy Division estimates a moderation of economic growth, both worldwide and in India, pegged at 7.1% for the latter. This can be attributed to slumps in consumption and investments across multiple sectors.
 
This downward revision of the GDP figures could majorly be attributed to a combination of factors such as a consumption slump and distress noticeably across the sectors. An illustration of this is the drastic fall in the sales of automobiles to 16%, for the first time in eight years. The consumption slowdown has been accompanied by an investment slump in the private sector, adding to the government’s policy woes and challenges to accelerated economic growth.
 
A critical component of economic growth is jobs creation, a crisis of scale which was presumed to dethrone the government, due to recent reports of India facing the highest rates of unemployment. According to The Business Standard release, the leaked NSSO report stated that unemployment hit the roof for the first time in 45 years , touching 6.1% in 2017.The creation of well-paid jobs is integral for any inclusive economic transformation. So, the government, during its second tenure, must implement measures and reforms across the Indian economy, to address this burgeoning crisis. Some of these include the encouragement of private investments, establishment of multi-stakeholder consultations etc.
 
Thus, the 2019 General Electionsmark a critical inflection for India owing to multiple socio-political reasons. Given the large-scale mandate that Modi has been given by the Indian electorate, a feat previously achieved by the erstwhile Prime Minister, Indira Gandhi, with the figurative decimation of her opposition, now is the time for the Modi government to push ahead with muscular changes in the Indian economy, in order to build a strong and inclusive polity.
 
India Outbound
May 28, 2019
 
 

source https://indiaoutbound.org/the-economic-challenges-facing-modi-2-0/

India got it Right with Modi

The Indian Prime Minister Narendra Modi has been returned to office with an overwhelming majority in the Lok Sabha, the lower house of the Indian Parliament enabled by a coalition of voters from all strata of society, including Muslims.
 
Ironically, the same leader, who has evidently broken the regressive vote banks of parochial leaders of caste and regional factionalism across the country, was besmirched by a member of the erstwhile Lutyens cabal as the “Divider in Chief” while writing for the Time magazine.
 
The #Guardian and the #NewYorkTimes have followed suit with equally uninformed diatribes that highlight nothing but selective amnesia, with a great deal of loathing and contemptuous disdain for the common Indian voter. In fact, the New York Times is soaring to greater heights of incredulity each day, with flawed ill-informed narratives, infused with subtle dosages of racism.
 
To the dismay of most Indians and the inter-generational diaspora outside, this venom spouted by the supposed “liberal” global news outlets, is being lapped up by what the Indian PM rightly refers to as the #KhanMarketGang – whose narrative of fear mongering and negativity littered with examples of ludicrous hypocrisy and selective amnesia have been thoroughly rejected by the voters of India.
 
The elitist perception of India has been far removed from reality. Sadly, the western media outlets have been reduced to getting their stories from the soirees across Lutyens Delhi. No one, barring the higher echelons of the Congress Party and their cheerleaders in the media, bought into their narrative and the result is out in the open for all to see. But, the Lutyens cabal and their wider ecosystem do not give up so easily. Unsurprisingly, their latest gripe revolves around the myth that the election was won by a religiously polarised electorate and hyper nationalist narrative – once again pontificating without an iota of evidence or a modicum of good sense!
 
While the liberal elite, cocooned in TV studios, was bashing Modi, with the conviction that he would be rejected by the electorate, the BJP’s grassroots workers were going door to door, reminding voters that almost 400 million poor people have benefitted from more than one of the many schemes launched by the central government in the past five years. They have been provided with houses, toilets, cooking gas, electricity, mudra loans, health and life insurance schemes as well as Direct Benefit Transfers, thereby facilitating inclusive development, financial inclusion and elimination of corruption.
 
For the first time, the poorest of the poor have the opportunity to avail choices in the public services provided to them. The lives of millions of Indians who previously survived on handouts from the “Mai-Baap-Ki-Sarkar” (a paternalistic form of government that doles out favours), were transformed under Modi’s stewardship. This is also the first time that they have become aware of their rights, as the Prime Minister put them front and square in terms of governance and delivery.
 
While the global liberal group think was busy reinforcing a flawed narrative within a limited church of illiberal liberals – the voters on the ground saw that the benefits, unlike in the past, did not go to only those belonging to a particular religion, caste, creed or even political affiliation, instead, it went to all deserving households.
 
In the past 30 years of politics dominated by castes and specific vote banks, this is indeed revolutionary. Of course, the message from Bharat bypassed the cul-de-sac of “liberal” India, who are safely removed from the realities on the ground. This inclusive nature of delivery and governance is the core foundation of the Indian Prime Minister’s overwhelming victory.
 
The model of governance under Modi was also inextricably linked to the national security discourse. A vast majority of Indians firmly believe, as does the wider world, that Pakistan is the source of terrorism in India and has repeatedly blackmailed India with the threat of a nuclear response, if India chose to take any retributive action. That has been the dominant narrative, since the attacks on the Houses of Parliament to the horrific attacks on 26/11 or Indian security personnel in recent times.
 
However, Prime Minister Modi refused to go by the same playbook and took retaliatory actions that were measured, restrained and targeted only terrorists, without harming Pakistani civilians or military personnel. The message was clear: India was no longer going to be blackmailed by the neighbouring terror state. Yes, the Balakot incident has accentuated the victory, but it cannot be deemed the raison d’être for the same.
 
Not only did the Lutyens cabal get it wrong with the reasons of the BJP victory, they appear to be equally wrong about what is going to happen in Modi 2.0. The first two speeches by Prime Minister Modi, after the victory, are cases in point. His victory speech was measured and the essence of the message was that of an inclusive India, united with a common purpose of improving lives and shaping a better world, for all Indians, especially those belonging to the most marginalised sections of society, irrespective of caste, creed or religion.
 
The Prime Minister also highlighted the responsibility of the Indian society to empower and enable those whose entrepreneurial spirit are catalysts for a transformed India. Importantly, he stressed upon the fact that the elections were over and that the NDA would govern on behalf of all Indians, including those who were in the opposition and did not vote for him.
 
He also addressed the newly-elected MPs of the NDA about the responsibility of power and the need to avoid its trappings. He urged the illiberal “liberal” media to stop scaring the minorities in the country and appealed to his parliamentary colleagues to effectively engage with minorities, as removing this fear is their responsibility and each one of them must exemplify this responsibility through their actions.
 
So much for being a divisive leader, the Guardian and the New York Times have gotten their judgement wrong. In the meantime, the “illiberal” liberals must get over their victimhood and practice what they preach, while avoiding group think. History is bound to judge PM Modi as one of the most iconic and transformative leaders of his times and India got it right!
 
Shamit Ghosh
May 28, 2019
 
 

source https://indiaoutbound.org/india-got-it-right-with-modi/

Burgeoning Indian-Taiwanese relations

The bilateral relationship between India and Taiwan has historically been characterised by a sense of self-imposed caution, on both ends, with India employing soft balancing strategies. Taiwan is a unique political actor on the international stage due to the lack of recognition accorded by many countries, including India, despite it being a vibrant democracy. The Chinese have staked claims on the territory, as part of itsOne China principle. Thus, most countries find it challenging to balance the political implications of fostering ties with Taiwan and China.
 
Taiwan underwent drastic change in the political sphere in 2016, as Tsai Ing-wen was elected as President. This marked a growing shift away from financial dependence on China. Under her leadership, Taiwan constituted the New Southbound Policy, with an aim to diversify its trading and investment partners, through engagement with 18 South and South-East Asian countries. Under this policy, India is a focal point of Taiwan’s current strategy of policy outreach.
 
After the announcement of the results of the Indian General Elections on May 23rd, 2019, Reuters reported that both countries will strengthen their bilateral trade and cultural ties. Taiwan is looking to increase trade with India by 20% as part of the aforementioned New Southbound Policy and due to the escalating costs of the US-China trade war. In 2018, Taiwanese investment in India reached $360 million. In 2018, the total bilateral trade between India and Taiwan was pegged at US $7 billion, which is a 5-year high, after an 11% increase from 2017. India emerged as Taiwan’s 16th largest trading partner.
 
At present, India exports mineral fuels, steel, iron, organic chemicals, maize and oil seeds to Taiwan, and imports machine tools, electric machinery and equipment, plastics and organic chemicals from Taiwan. However, both countries realise that there lies an opportunity for deeper engagement, albeit within the context of Indo-Chinese relations, given the complementary nature of India’s Act East Policy and Taiwan’s New Southbound Policy. For example, in January 2019, China issued a warning to India against the provision of military technology to Taiwan, after an Indian firm reportedly submitted a proposal to Taiwan for building submarines.
 
In December 2018, India and Taiwan had signed a new bilateral investment treaty, as an upgradation of the treaty that was originally signed in 2002. More than 106 Taiwanese companies like Foxconn, MSI and Gigabyte are already present in India. From May 16-18, 2019, the 2nd edition of the Taiwan Expo took place in New Delhi.
 
The Indian government’s initiatives like Make In India, Digital India, Smart Cities and Start-up India also make the country an attractive investment destination for Taiwanese business. Moreover, the opportunities for profit present in the Indian market has multiplied with improvements in the business ecosystem (overhaul of the indirect tax structure and consolidation of bankruptcy laws). India’s standing in the World Bank Ease of Doing Business 2018 saw an improvement of 53 positions, to the 77th place.
 
On the other hand, Taiwan is a global leader in ICT and has expressed interest in developing the auto, electric vehicle and technology sectors in India. This is relevant for India because of its desire to transition into a knowledge economy, as a differentiating factor in comparison to other emerging economies.
 
India and Taiwan have the potential to increase collaborations in terms of education, tourism, high-level exchanges, in addition to economic ties governed by trade and investment.
 
India Outbound
May 27, 2019
 
 

source https://indiaoutbound.org/burgeoning-indian-taiwanese-relations/

The Global Digital Health Index 2019

The Global Digital Health Index and Maturity Model was developed as a tool to help countries benchmark and monitor their investments in digital health over time, through enhanced data use and visibility into health systems. The GDHI is an interactive digital resource for tracking, monitoring and evaluating the strategic usage of digital technology for health across countries.
 
The GDHI’s maturity model provides a roadmap for each country’s digital health growth, by recognising the diversity existing in each phase of digital health development. Using a capability-based approach, the GDHI identifies 5 phases of development, corresponding to the different capability sets, thereby, allowing countries to identify and improve specific weaknesses.
 
Most countries seem to lack the enablers required to maximise the benefits of and investments in digital health, for improvement in health outcomes. This lack of visibility hampers the maturity of digital health due to the existence of persistent fragmentation and inefficiencies at the national and sub-national level.
 
For this purpose, the inaugural State of Digital Health 2019 report provides an unprecedented snapshot of the digital health ecosystems of 22 countries across 6 different regions of the world. It analyses emerging trends, sets benchmarks for consideration and contextualises findings in relation to digital health milestones and global trends, for charting future growth. The report also lays the foundation for better-informed and coordinated investments in digital health. This report is also intended to catalyse other countries to contribute their data to the Index, to make future analyses more comprehensive and actionable.
 
Thus, the report uses 7 categories of indicators to track the progress in digital health, with 5 different criteria under each category. The categories include: leadership and governance; strategy and investment; legislation, policy and compliance; workforce; standards of interoperability; infrastructure; services and applications.

The GDHI Theory of Change
In striving to raise the bar in the field of digital health, the GDHI is largely driven by a theory of change and use cases, which are prioritized through a participatory design, development, and testing process involving a broad range of government, private sector, academic, NGO, and other key digital health stakeholders from around the world.

Findings of the report

• The average global maturity of the digital health ecosystem is in Phase 3 out of 5
• The strongest component measured under the GDHI is leadership and governance
• The two weakest areas are: standards and interoperability and digital health workforce development
• The lack of national digital health infrastructures, exchanges of health information and data standards, in countries throughout the world, lead to slowed progress in the digital health space
• The African countries demand specific focus on investment given that they are lagging in global averages
• The Southeast Asian and Western Pacific regions have more mature digital health ecosystems than other regions, with a score of 4 out of 5 on the GDHI’s maturity model

The underlying idea is to motivate global leaders with a unified call to action: to improve the data for existing digital health ecosystems and provide clear pathways for improving them. In order to build robust digital health ecosystems, it is imperative that all countries participate in the Index, as the first step towards progress.
 
All information for this article has been sourced from here.
 
India Outbound
May 24, 2019
 
 

source https://indiaoutbound.org/the-global-digital-health-index-2019/