INDIA One with the World @ D A V O S 2 0 2 3
| 2 | Editor - Rashmi Pratap | Creative Director - Muhammad Jaan Faruqui Advertising & Sales International Media - Print & Events: srinivas.iyer@mediascope.co.in | sharmila.devnani@mediascope.co.in | joy.dutta@mediascope.co.in rachna.gulati@mediascope.co.in | saajid.nishat@mediascope.co.in | vinod.kumar@mediascope.co.in This magazine is printed and produced by Mediascope Representation India LLP. Opinions herein are the writer’s and do not necessarily reflect the opinions of Mediascope Representation India LLP. Editorial enquiries concerning the reproduction of articles, advertising and circulation should be addressed to: INDIA@DAVOS 2023, Mediascope Representation India LLP., 51, Doli Chamber, Arthur Bunder Road, Colaba, Mumbai - 400005. India. • Email: srinivas.iyer@mediascope.co.in • M: +91 9820132670. Material in this publication may not be reproduced, whether in part or in whole, without the consent of the publisher. INDIA@DAVOS 2023 is printed at Silverpoint Press Pvt. Ltd., A-403, TTC Industrial Area, Mahape, Navi Mumbai - 400709. C O N T E N T S I N D I A @ D A V O S 2 0 2 3 04 | Exclusive Article: CII President 06 | Curtain Raiser: Davos 08 | Exclusive Article: CII DG 10 | Indian Economy 12 | Chair B20 & Chairman -Tata Sons Special 16 | Viewpoint: CYIENT 18 | Viewpoint: GEP 20 | Special Feature: KIIT 26 | CII DG’s Special on India’s G20 & B20 Presidency 28 | Viewpoint: Allcargo Group 30 | Viewpoint: Kotak Mahindra Bank 32 | Special Feature: Bank of Baroda 34 | Viewpoint: Adani Group 36 | Special Feature:Tamil Nadu 38 | Special Feature: NTPC 40 | CII Photofeature 42 | Special Feature:Warehouster 44 | Editor’s Special on G20 & India’s Presidency 46 | Special Feature: JSP 48 | Special Feature: Andhra Pradesh 10 18 34 40 12 26 36 46
various production-linked incentive (PLI) schemes to attract investments in clean and affordable energy. The exit from mobility restrictions and nearly universal vaccination coverage brought about by the release of pent-up demand during the pandemic have contributed to the growth of the services industry. India is rapidly positioning itself as an emerging manufacturing hub in global value chains, with a growing consumer market and a hub for ongoing digital transformation. India’s large and stable democracy and consistent reform measures, coupled with a growing domestic consumption base and a digital economy make India an optimistic destination for multinational enterprises. India‘s FDI intake has increased steadily over the past 10 years, reaching US$ 84.8 billion in 2021–22, despite the impact of the pandemic and geopolitical developments. According to estimates (CII- EY), India might bring in $475 billion in FDI over the course of the next five years. In the post-pandemic working world, there is an increased focus on Global Capability Centres (GCC). Worldwide, India remains the top go-to-destination for GCCs, providing the most favoured environment in terms of ease of hiring talent, cost of operations and geopolitical stability. Today, the GCC presence in India spans across sectors, including banking and financial services, healthcare, electronics, and energy. I would like to highlight three areas where India can work together with global businesses in the coming days. First, post-pandemic India has emerged as a reliable node of the global supply chain. Global businesses must consider incorporating India into their trade and investment strategies to diversify their sources of goods as well as access the Indian market. To accelerate this process, India has been in talks with several partner nations for economic agreements that will reduce tariffs and address non-tariff barriers, both for goods and services. According to estimates (CII- EY), India might bring in $475 billion in FDI over the course of the next five years. Two, the Indian industry is fully committed to meeting the national targets for Net Zero. We hope to garner partnerships and collaborations in areas like energy transition, sustainable mobility, climate finance and green bonds for green infrastructure. India is one of the few nations which is on pace to fulfil its nationally defined climate targets. It has established a national green hydrogen strategy, increased the share of renewable energy in the overall energy capacity, and accelerated the use of electric vehicles. Finally, India can partner with the world’s leading technologynations todrive industrytransformationthrough Industry 4.0 and beyond. Today, India is experiencing significant transformations driven by technology-led innovative solutions. Research & development, innovation and digitalization are a national priority of the future. We are deeply focused on building a robust ecosystem of research, innovation and technology within the country. India has transformed into a stable and rapidly growing economy with a strong foundation in governance, knowledge and innovation, and a hub of talent. We believe that there is no better time for strengthening our strategic economic engagementwith theworld for trade, investments, technology partnerships and new-age innovations. We look forward to partnering with the world for finding solutions to global challenges and developing a better shared future. • | 5 | Theworld is experiencing unprecedented disruptions as it grapples with the aftereffects of the pandemic and is mired by tumultuous geopolitical situations that are having a resounding impact across economies, especially developing economies. Global priorities have shifted towards geopolitical stability, resilient supply chains, sustainability issues and inclusive development. Building resilient economic systems is the need of the hour. As India celebrates its 75th year of Independence, it is at a juncture where it is experiencing strong economic growth despite the global headwinds. The current geopolitical scenario drives India to chart a way forward that is self-reliant with a focus on technology and innovation while developing deep strategic global partnerships and maintaining an emphasis on areas of growth and development for Indian industry and economy. The Indian economy is robust, considering the current situation of the world and is doing well with a projected growth rate of 6.1% per cent for 2023 as per IMF estimates. The positive prognosis for India’s economy is reflected in the nation’s strong position in international markets. Resurgent domestic demand, services, the digital economy, and infrastructure are driving forces for India’s rising development trajectory. Despite the ongoing global slowdown, India’s total exports (goods and services combined) increased to new peaks in 2021-22 at over US$ 1 trillion. India was the fifth-largest recipient of foreign direct investment. India ranked fortieth in the Global Innovation Index 2022, ranking first in innovation among lowermiddleincome group economies across the world. Accelerated The global economy is facing multiple challenges from climate change to geopolitical tensions. It’s time for an economic architecture that’s sustainable & inclusive Building resilient economic systems scientific and technical innovation is driving rapid economic progress throughout the country. India became the world’s largest information and communications technology services exporter. The current 2022-23 G20 Presidency of India offers a chance to strengthen its expanding foreign policy influence as well as a chance to forge new business relationships and investment prospects. The next phase of India’s journey, termed ‘Amritkaal’ or the era of progress, aims to be future-forward, technologically driven, environmentally and socially conscious and inclusive. The government has laid down a roadmap which has the potential to be transformative. The focus is on creating strong infrastructure frameworks, particularly in the areas of social, financial, and digital infrastructure. Over the past decade, India’s efforts have resulted in a significant transformation of its infrastructure and the PM GatiShakti programme for harmonized infrastructure construction will further synergize energy transmission, IT communication, bulk water and sewerage, and social infrastructure. The new National Logistics Policy is set to ring in ease of moving in the country, ensuring a speedier and seamless movement of cargo and people across modes of transport. It is expected to bring about a paradigm shift in multimodal transport and position India as a global trendsetter in the digital and paperless logistics ecosystem, while also creating new investment and growth opportunities in the sector. Commitment towards sustainable development is evident in India’s efforts in decarbonization through the introduction of structural and procedural reforms and Sanjiv Bajaj President, CII and Chairman & Managing Director, Bajaj Finserv Limited EXCLUSIVE ARTICLE | 4 |
| 6 | CURTAIN RAISER Global cooperation for positive change From Davos 2022 to Davos 2023 World Economic Forum’s Annual Meeting gathers together government, business and civil society leaders with the knowledge, expertise and clout to make positive change happen. Established more than 50 years ago, the Annual Meeting embodies ‘the spirit of Davos’, which is an attitude of openness and cooperation that is core to the mission of the Forum. Davos 2022 held last May was the first in-person Annual Meeting of the World Economic Forum since January 2020. Davos 2023, running from January 16-20, marks a return to the January event. Last year, 2,500 world leaders and experts reconvened in Davos to address the most pressing challenges of our time: Ukraine and the future of the global world order, the growing urgency of the climate crisis and its impact on food and poverty, the outlook for the recession and the future of work, and how to end COVID-19 and prepare for the next pandemic when many countries still don’t have access to vaccines. “What we have to confront is a deep systemic and structural restructuring of our world. And this will take some time. And the world may look differently after …[the] transition process,” Dr Klaus Schwab, founder of the World Economic Forum, said. The importance of global cooperation has always been a key theme of Davos, but in 2022, geopolitical conversations took on new urgency against the backdrop of the war in Ukraine. “Rebuilding global cooperation after years of erosion requires focusing on what has proven to work. During our current period of upheaval and discord, we must reaffirm, and strengthen, mechanisms of cooperation, because history has shown it is the only way to address our most urgent priorities,” wroteWorld Economic ForumPresident Børge Brende. The climate crisis has long been a key component of the Davos agenda. But with rising emissions, rising energy prices and rising food prices – inextricably linked and exacerbated by the geopolitical crisis in Ukraine – climate conversations took a graver tone at Davos 2022 as world leaders discussed the need for immediate action. During Davos 2022, the Forum launched the Resilience Consortium, which brings together ministers, chief executives and heads of international organizations, to accelerate collective action across key resilience drivers for the global economy and develop a common resilience framework. COVID-19 has been a hot topic during every Annual Meeting since January 2020, when the virus emerged – and thanks to the vaccines, attendees were able to return to Davos, more than two years later. Leaders at Davos 2022 discussed how governments, corporations and other stakeholders can collaborate to improve health equity – starting with preparing for the next pandemic. The Forum also generated substantial support for the importance of changing the care work model. Its report, Jobs of Tomorrow: The Triple Returns of Social Jobs in the Economic Recovery, is “a call to action to lead an ambitious, coordinated, multistakeholder approach to initiate a new wave of investments into three foundational social institutions: education, healthcare and care.” And finally, the members agreed that technology, carefully executed, could act as a multiplier to address multiple challenges simultaneously – from reducing poverty to stopping climate change. But to get there, digital inclusion, security and appropriate regulation are essential. And Davos 2023 will take the steps necessary for moving ahead. • What we have to confront is a deep systemic and structural restructuring of our world. And this will take some time. And the world may look differently after … [the] transition process Dr Klaus Schwab founder of the World Economic Forum
| 8 | The World Economic Forum (WEF) Annual Meeting has been an important destination for India’s international relations. India has been an important participant in this annual meeting, and the Confederation of Indian Industry (CII) has been associated with this forum for over 35 years now. WEF promises to be a platform for the Indian industry to learn, grow and build new partnerships, and CII’s footprint at Davos will further strengthen and help the country scale new global heights. As India completes 75 years of Independence and assumes the G20 Presidency for 2023, it finds itself in an uncertain geopolitical and global socio-economic environment that gains complexity with the overlay of the climate change imperative and fast-paced technological advancements. Davos 2023 will renew focus on India’s rising economic potential supported by a vibrant domestic economy and provide new opportunities to position India for global leadership with a long-term vision of India@100 in 2047. A globally integrated India has recently emerged as the 5th largest economy in the world, overtaking the United Kingdom. The Indian economy has exhibited a growth of about 6.5% over the last pre-pandemic decade and is poised to enter a similar, if not higher, medium-term growth path. As a result, India is expected to remain the “fastest-growing major economy” in the world over the medium term. The accelerated growth of the Indian economy, supported by domestic consumption demand, investment rates and government spending, is expected to have a positive impact on the regional and global economy. The accelerated growth of the Indian economy will have a positive impact on the global economy Davos 2023 will renew focus on India’s rising economic potential Global alliances and international collaboration are critical in evolving strategies that improve economic resilience and facilitate growth. Despite global challenges, the Indian economy’s macroeconomic fundamentals remain solid. The government has implemented several structural and economic changes, including banking sector regulations, liberal FDI rules, and important financial sector reforms, which are intended to make India an attractive investment destination. Although India is not immune to the global recession, it is expected to remain the fastest-growing major economy. Our foreign exchange reserves are strong and our export and FDI performance continue to be robust. The coordinated interventions of the government and the Reserve Bank of India should lead to softening the blows of inflation. Five important pillars of the government’s economic plan stand out from an industrial standpoint: infrastructure, manufacturing, entrepreneurship, sustainability, and the social sector. India’s upcoming G20 Presidency will put the country on the global stage and allow it to position its priorities and narratives on the global agenda. TheConfederation of Indian Industry (CII) has been designated as B20 Secretariat. Our goal is to spearhead the industry’s participation during India’s G20 presidency and ensure that the viewpoints of the Indian industry are effectively reflected in various G20 forums. Today, Indian industry stakeholders are taking an active interest and working with other stakeholders and G20 leaders in the areas of global value chains, trade and investment, climate change, digital transformation, ease Chandrajit Banerjee Director General, Confederation of Indian Industry (CII) EXCLUSIVE ARTICLE | 9 | of financing global recovery, technology, innovation and the role of research and development, financial inclusion, women in business and startups. The Government has accorded high priority to sustainable development and outlined ambitious targets for climate change. India’s growing power and energy demand are directing the need to diversify energy alternatives, upgrade to sustainable refinery processes, accelerate the bio-fuel economy, and attract investment in exploration and production to enhance domestic energy capacity and facilitate a smooth transition towards a sustainable economy. India is one of the few countries on track to meet nationally determined contributions. With sustainability being driven by industry, CII has initiated training and capacity building as well as policy advocacy and collective industry action for sustainable operations through initiatives like Indian Plastics Pact, the Biodiversity initiative, the Sustainable Mobility initiative and others. The National Logistics Policy is set to usher in ease of movement within the country, ensuring a speedier and seamless movement of cargo and people across modes of transport. The reforms will bring a paradigm shift in multimodal transport and position India as a global trendsetter in the digital and paperless logistics ecosystem. It will spur the economy’s competitiveness through improved connectivity and smooth movement of goods in both domestic and international markets. India’s improved rankingon theGlobal Innovation Index 2022 and progress on Ease of Doing Business are indicative of the visible shifts in our technology, innovation and entrepreneurship landscape. Today, India is experiencing significant transformations, from space technology and smart cities to health care and telecommunications, all driven by innovative solutions. Using frontier technologies, Indian companies are making significant leaps in innovation. In so doing, they are making their contribution to the country’s socioeconomic transformation. The Indian IT industry is repositioning itself to become the world’s digital solutions partner. Furthermore, startup culture has taken hold across the country, establishing India as the world’s third-largest startup economy. We also have the third-most unicorns in the world. Our contemporary entrepreneurial and innovation environment is transitioning away from efficiency-seeking e-commerce marketplaces and toward deep-tech and IP-driven creative firms generating new goods. CII is collaborating closely with the Indian Government and other stakeholders to encourage the Indian industry to recognise and embrace innovation. We prioritise capacity building, academic engagement, and worldwide cooperation in sharing best practices as we aim to take firms to the next level of technological innovation. India is a consumption-driven economy driven by its young population and digitization is creating a change in the pattern of consumption in India. Domestic consumption’s share in GDP is relatively high compared to other emerging economy peers. Due to a large domestic consumption base and rapid growth, India is projected to experience real growth in consumption spending of about US$ 1.7 trillion during 2019-2030. This would be the 3rd highest growth in demand across economies behind only the US and China. While the services sector contributes considerably to GDP through increased demand, investments, and exports, chemicals and plastics, textiles and garments, consumer products, electronics, medicines, and automobiles are all strong segments of our manufacturing industry. Manufacturing opportunities in India are expanding as multinational corporations perceive India as a manufacturing and export centre to diversify their supply base and decrease geopolitical concerns. The moment has come to improve our international bilateral connections and welcome investors to take advantage of the numerous opportunities. With both quality and quantity, India can rise to meet not just rising local demand, but also global demands, and emerge as a preferred location for global corporations. • Despite global challenges, the Indian economy’s macroeconomic fundamentals remain solid.
| 10 | INDIAN ECONOMY The Indian economy has travelled a long way from the relative isolation of the 1970s and 1980s to becoming a crucial part of the world economy and the global financial system. While India’s economic and financial integration with the world formally started with the 1991 economic reforms, the process has gathered pace in recent years. The government is actively promoting India as a sourcing hub for multinationals across sectors with policies like Make in India, Production Linked Incentive (PLI) Scheme for investors in key manufacturing sectors such as electronics, electric vehicles, textile and garments, solar modules and semiconductors among others. These policies have started to bear fruit. In the last financial year, India overtook the United Kingdom to become the world’s fifth-largest economy with a Gross Domestic Product of nearly US$3.2 trillion. At its current pace of growth, India may well become the fourth-biggest economy globally in the next few years. This presents one of the biggest growth opportunities for global investors and multinational corporations. India received nearly $87 billion worth of foreign capital in FY21, making it one of the most popular destinations for global investors Going from strength to strength India is also one of the world’s top manufacturing and trading nations. It looks set to further increase its global footprint as an ever-growing number of multinationals select India as a manufacturing destination in line with the China-Plus-One global sourcing strategy. According to an analysis by CRISIL, foreign trade was the fastest-growing component of India’s gross domestic product (GDP) in FY22 with both merchandise exports and imports reaching record highs. India’s participation in global trade is expected to increase further with the roll-out of the PLI scheme. Importantly, the government policy of encouraging the world’s top companies to set up manufacturing operations in the country through a slew of incentives and tax breaks under the PLI Scheme has strengthened India’s position as a manufacturing hub and boosted Prime Minister Narendra Modi’s ‘Make in India’ initiative. In the last few years, some of the world’s top companies such as Apple, Samsung, Foxconn and Xiaomi among others have set up world-class manufacturing operations in India. | 11 | Thanks to these efforts, India is one of the biggest manufacturers of mobile phones in the world. Also, electronics are now one of the biggest and fastestgrowing exports from the country. The technologies being brought to India by multinationals are generating new employment opportunities here. “India is becoming a manufacturing hub. It is building a foundation for a self-reliant India. Be it manufacturing of electronic goods or mobile phones, today the country is progressing at a very fast pace,” Mr Modi said. In 2022, the Indian government approved a $10 billion PLI Scheme to encourage semiconductor and display manufacturing in the country. The scheme has got moving with India’s top business groups announcing plans to invest billions of dollars in electronic chip manufacturing plants. At this rate, India is on course to become one of the top manufacturing and sourcing hubs in Asia for semiconductors and electronics products and components. India’s Commerce Minister Piyush Goyal has announced an ambitious target of achieving $2 trillion in exports by 2030 and $7.5 trillion by 2047. This requires 20% annual growth in exports for the next decade. “It’s time to take exports to the next level,” Mr Goyal said. To achieve this target, India is energetically embarking on a series of trade agreements for boosting exports, removing barriers for skilled Indian professionals and secure imports of essential raw materials for manufacturing growth. New trade agreements signed with Australia, the UAE and soon with the UK will be templates for more to come. Foreign trade plays a much bigger role in the Indian economy than in many other large emerging and advanced economies including China, the United States, Brazil, Indonesia and Japan among others. During the fiscal year ending March 2022 (FY 202122), India’s merchandise exports reached a record high of US$422 billion, up 44.6% from $291.8 billion in FY20-21. India earned another $257.7 billion from services exports, taking the total exports to an all-time high of nearly $680 billion. Foreign trade was equivalent to nearly 45% of India’s Gross Domestic Product in FY22, up from 38% a year ago, underlining its increasing ties. The comparative ratio for China was around 38%, while it was 26% in the case of the United States, the world’s largest economy. Other countries that lag behind India in this regard include Japan (37.7%), Brazil (38.2%) and Indonesia (39.1%). India is also a global leader in software and services export. According to the United Nations Conference on Trade and Development (UNCTAD), India is the biggest exporter of ICT-enabled services among emerging markets with total export revenue at nearly $82 billion in CY21, which is only second to Ireland that tops the list at $198 billion. India’s export of ICTenabled services is growing at 12-15% per annum, making India a keystone member of the global technology ecosystem. India also plays an active role in global capital flows and Indian equity is now one of the biggest in the world. According to data from UNCTAD, India was the seventh-biggest recipient of foreign direct investment (FDI) in CY21 at US$44.7 billion. Including investment by foreign portfolio investors (FPIs) and capital raising by Indian companies, the country received nearly $87 billion worth of foreign capital in FY21, according to data from the Reserve Bank of India, making India one of the most popular destinations for global investors among the emerging markets. India has already signed 13 Free Trade Agreements (FTAs) with its trading partners that include the world’s major economies such as Japan, Australia, United Arab Emirates, South Korea, Singapore, Thailand and Malaysia among others. India is also negotiating FTAs with the United Kingdom, European Union and New Zealand. All these are set to make India an even bigger and more important member of the global economy in the coming years. • India is becoming a manufacturing hub. It is building a foundation for a self-reliant India. Be it manufacturing of electronic goods or mobile phones, today the country is progressing at a very fast pace” Narendra Modi Prime Minister of India
| 12 | CHAIR B 20 & CHAIRMAN - TATA SONS SPECIAL With India assuming the G20 presidency from December 1, 2022, the premier international forum’s engagement groups have also been handed over to India. India has thus taken over the baton of B20, the business engagement group of G20 which brings together enterprises from the G20 member nations to contribute to the global dialogue. As India commences its leadership of B20, we find ourselves in a global economy at the cusp of transformation, driven by multiple developments including the lingering impact of the pandemic, geopolitical conflicts, acceleration of technology adoption, and shifting global value chains. We aim to converge businesses from all sectors, segments, and regions for constructive solutions that world governments can consider. Climate change is a mounting challenge that no country can escape, and that necessitates a new way of doing business as well. The participation of businesses in global economic decision-making has never been so critical. We believe that, given the current transformations underway, a renewed strategy for businesses to come together will catalyze global economic stability, progress and growth that is inclusive and sustainable. B20 India is committed to strengthening the partnership between businesses of the world’s largest economies. Our aim is to converge businesses from all sectors, segments, and regions, includingboth, largeandsmall enterprises, for constructive solutions that world governments can consider, not just for the G20 economies but smaller ones aswell. Itwould leave an indelible impression in shaping the actions demanded by today’s challenges. | 13 | B20 India has strategized its agenda and priorities based on the dialogues already held under the previous chairs along with charting a path ahead for both governments and businesses. The group’s policy recommendations would be an important input for the final G20 India summit declaration. Our agenda is conceptualized under the theme of RAISE -- Responsible, Accelerated, Innovative, Sustainable and Equitable Businesses. We believe that a global business sector that prioritizes responsibility to society, accelerates the needs of development, builds on innovation, and ensures sustainable development will be the right catalyst for growth - equitable and inclusive growth that embraces all sections of society. B20 India has identified the priorities for industry action over the coming year under India’s presidency in consultation with the government and other stakeholders. We propose to drive the agenda through 7 task forces and 2 action councils that will take forward these priorities for the year. The first one is building inclusive global value chains for resilient global trade and investment. The imperative for this arises from the recent disruptions that we have witnessed throughout the world and the focus will be on leveraging trade as an instrument for economic growth and stability. The integration of businesses into global value chains, particularly for small and medium enterprises (SMEs), can be fostered through convergence between industry 4.0 and trade 4.0 as well as greater services trade. Second, the future of work, skilling and mobility is an area of rapid change that is impacting workers across the world. This pillar of the B20 India would focus on bridging the skilling gaps through reskilling and training and supporting SMEs, among other pertinent issues. Third, the dialogue on energy, climate change and resource efficiency will take forward the conversation on meeting targets as per the UN sustainable development goals (SDGs) and the Paris Agreement. The focus areas for developing actionable recommendations include investments in green energy such as emission-neutral technologies, transitioning to electric vehicles and hydrogen fuel, accelerating net-zero transitions, and improving climate finance options. Fourth, on digital transformation, B20 India would work on digital literacy and digital inclusion apart from innovative business models. Support for Least Developed Countries (LDCs) will also be taken up to evolve solutions to enable governments in enhancing public service delivery to their citizens. Five, financing for global economic recovery is a critical priority and demands urgent and coordinated global action. Empowering small enterprises through access to finance as well as long-term capital for infrastructure development are some of the themes of this priority agenda and we would work on developing policy recommendations on debt servicing, climate financing and financial inclusion. Six, tech, innovation and R&D are key drivers of growth and inclusion. Through public-private partnerships how to stimulate R&D, leveraging network infrastructure and strengthening the global intellectual property regime to facilitate innovation will be some of the issues that B20 India will consider. Seven, the topic of financial inclusion for economic empowerment would share best practices and innovations for affordable financial solutions, particularly for MSMEs. Access to financial products and financial literacy need to be expanded to empower citizens and businesses across the world and digital technologies can help in this effort. The action councils have been devised to drive business cooperation in two new and important areas for B20. The first would be on environmental, social and governance areas for businesses with a focus on sustainability, integrity & compliance, and affordable and accessible health and education for all. The second proposes to support the African continent through business integration. With this, B20 India would have a comprehensive business agenda for global growth. Business is an accelerator for growth and as B20 we must jointly ensure that it is a force of inclusive development and contributes to solutions for challenges that the world faces today. B20 India looks forward to shaping the agenda for business over the year and synergizing with G20 deliberations with all partners on the platform. • The B20 India business agenda is aligned with India’s G20 presidency N Chandrasekaran Chair, B20 India and Chairman, Tata Sons
India Infrastructure Finance Company Limited (A Govt. of India Enterprise) Direct Lending Subordinate Debt Refinance Takeout Finance Credit Enhancement Investing in Project Bonds & InVits India Infrastructure Finance Company Limited (IIFCL), established in 2006 as a wholly-owned Government of India (GoI) company, registered with RBI as NBFC-ND-IFC, under its mandate has been playing an active role in providing long term financial assistance to commercially viable infrastructure projects in the country to sectors such as transport, energy, water sanitation, communication, social infrastructure, etc., with an overriding priority to Public Private Partnership (PPP) projects. India Infrastructure Finance Company UK Limited (A Wholly - Owned Subsidiary of IIFCL, A Govt. of India Enterprise) E-mail: info@iifc.org.uk IIFCL Asset Management Company Limited (A Wholly - Owned Subsidiary of IIFCL, A Govt. of India Enterprise) E-mail: info@iifclmf.com IIFCL Projects Limited (A Wholly - Owned Subsidiary of IIFCL, A Govt. of India Enterprise) E-mail: info@iifclprojects.com OUR SUBSIDIARIES Corporate Office:- 5th Floor, Block 2, Plate A & B, NBCC Tower, East Kidwai Nagar, New Delhi – 110023 Fax: 011-23766256,23730251 | CIN No. U67190DL2006G01144520 Email: information@iifcl.in | Website: www.iifcl.in @IIFCL Follow us on: @IIFCL @IIFCL Funding Foundation of the Future... Role and Impact of IIFCL So far IIFCL has sanctioned 670 Infrastructure projects with a total project outlay of Rs 12 Lakh Crore PPP projects 500 PPP Projects (28% of India’s PPP projects) Lead Lender in India’s First Railway Station Redevelopment Project (Rani Kamlapati Railway Station) Road Development ~30,000 Kms (~21% of India’s NH Capacity) Energy ~66 GW (~17% of India’s Installed Capacity) Major International Airports Delhi, Mumbai, Hyderabad, Noida(Jewar), Goa and others Ports – 836 MTPA (~33% of India’s Total Port Capacity) Renewable Energy ~16 GW (~10% of India's Installed Renewable Capacity Provided Financial assistance to projects which created over 1.5 crore direct and indirect jobs. India Infrastructure Finance Company Limited (A Govt. of India Enterprise) Direct Lending Subordinate Debt Refinance Takeout Finance Credit Enhancement Investing in Project Bonds & InVits India Infrastructure Finance Company Limited (IIFCL), established in 2006 as a wholly-owned Government of India (GoI) company, registered with RBI as NBFC-ND-IFC, under its mandate has been playing an active role in providing long term financial assistance to commercially viable infrastructure projects in the country to sectors such as transport, energy, water sanitation, communication, social infrastructure, etc., with an overriding priority to Public Private Partnership (PPP) projects. India Infrastructure Finance Company UK Limited (A Wholly - Owned Subsidiary of IIFCL, A Govt. of India Enterprise) E-mail: info@iifc.org.uk IIFCL Asset Management Company Limited (A Wholly - Owned Subsidiary of IIFCL, A Govt. of India Enterprise) E-mail: info@iifclmf.com IIFCL Projects Limited (A Wholly - Owned Subsidiary of IIFCL, A Govt. of India Enterprise) E-mail: info@iifclprojects.com OUR SUBSIDIARIES orporate Office:- 5th Floor, Block 2, Plate A & B, NBCC Tower, East Kidwai Nagar, New Delhi – 110023 Fax: 011-23766256,23730251 | CIN No. U67190DL2006G01144520 Email: information@iifcl.in | Website: www.iifcl.in @IIFCL Follow us on: @IIFCL @IIFCL unding Foundation of the Future .. So far I F h 670 Infrastr t r ith a t tal pr j t l Rs 12 Lak Cr r PPP projects 500 PPP Projects (28% of India’s PPP projects) Lead Lender in India’s First Railway Station Redevelopment Project (Rani Kamlapati Railway Station) Road Development ~30,000 Kms (~21% of India’s NH Capacity) Energy ~66 GW (~17% of India’s Installed Capacity) Major International Airports Delhi, Mumbai, Hyderabad, Noida(Jewar), Goa and others Ports – 836 MTPA (~33% of India’s Total Port Capacity) Renewable Energy ~16 GW (~10% of India's Installed Renewable Capacity Provided Financial assistance to projects which created over 1.5 crore direct and indirect jobs.
hampions, as Muhammad Ali, the legendary American boxer, once said, aren't made in gyms. They're made from something they have deep inside them – a desire, a dream, a vision. I nurtured a dream of building a global engineering services company in India. But my grand plans hit a roadblock even before they took off. In the early 1990s, large multinationals looked askance at engineering outsourcing. Products were zealously guarded like the crown jewels by organizations, and multinationals were highly sceptical about outsourcing their core competence. They were particularly apprehensive about IP and associated protection laws in countries like India. As a result, Cyient (then Infotech Enterprises, the company I founded in 1991) took a detour and found a potential adjacency in digitization and geospatial services. But I never took my eyes offmy first love: the engineering services business. This was the premise of Cyient's IPO in March 1997. We started with a small team, working on opportunities that came our way. A chance encounter led to Cyient signing a fiveyear contract in 2000 with Pratt &Whitney (a subsidiary of United Technologies Corp, now merged with Raytheon Technologies), one of the world's largest manufacturers of aircraft engines. This was a pioneering adventure for Cyient and the entire Indian outsourcing story, opening the floodgates for the 'Engineered in India' brand. Over the next five years, we gained significant traction, particularly with global customers in the aerospace and rail transportation industries. Yet, most of the industry, including Cyient, had a limited understanding of the engineering services market, its opportunity size and potential adjacencies. Engineered in India – Expanding the Horizons In the early years of the Indian IT outsourcing story, associations such as NASSCOM and CII contributed enormously to the rapid growth of the industry. I have been a member of the NASSCOM Executive Council since 2003 and vocal about the unique requirements and challenges of engineering services versus pure-play IT or BPM services. This proactive engagement led to founding of an engineering services council (ER&D Forum) at NASSCOM that launched several initiatives. One of themwas the commissioning of Booz Allen & Hamilton (BAH) to study the engineering services sector on the industry's behalf. BAH came out with a report titled "Globalisation of Engineering Services: The Next Frontier for India" in 2006. From $750 billion in 2005, the report estimated that the global spend on engineering services would cross $1 trillion by 2020. Out of this, the report predicted that $150-225 billion market was offshorable, and India could capture 25-30% (about $50 billion in annually). The report acknowledged the formidable strengths of India – availability of highly skilled resources, a strong track record in IT-BPO sectors, and cost savings. It also stressed the need to build domain capabilities, infrastructure, and international reputation to become the preferred destination for these complex, high-value services. This report came at an opportune moment and helped accelerate the growth of the outsourced engineering services market in the country. However, the market remained relatively small during the early years. Given my background in mechanical engineering, Cyient's focus in the initial years was entirely on mechanical engineering services. But the BAH report opened our eyes to electronics and semiconductor design, embedded software and manufacturing as significant new opportunities. Several pure-play IT services companies ventured into engineering services mainly through the embedded software services route. Advances in sensor technology, wireless communications, distributed computing, and big-data capabilities then began permeating the product design and engineering process. India began to be trusted with designing fuel-efficient aircraft engines, sophisticated nuclear power plants, vast 4G (and now 5G) communication networks, complex heavy industrial equipment, next-generation automotives, future-ready metro rail coaches, large medical technology equipment, and even a wide variety of consumer goods. Engineering the Future in India The emergence of Industry 4.0, industrial automation, robotics and 3D printing soon enabled the creation of the 'digital shop floor.' This brought massive digital innovation and transformation to the engineering world, wherein physical products were enhanced to become smarter, connected, autonomous and intelligent. In the intersection of information technology (IT) and operational technology (OT), service providers integrated previously siloed information across an enterprise such as ERP, PLM and MES. This led to increased productivity, optimized operational costs, enhanced equipment utility, improved employee safety, and lessened environmental impact. The digital engineering spend is currently growing at 20%CAGR, driven by metaverse, 5G, intelligent automation and Cloud/AI (Zinnov, May 2022). And this focus will continue unabated till 2025 to touch a massive $1.3 trillion, especially in light of increased spend on defence, semiconductor consumption, digital acceleration, and a heightened focus on sustainability. As technology acceleration continues, India remains the engineering services destination of choice for large multinationals. According to a 2022 survey, about 85 per cent of the 100 large multinationals surveyed already leverage ER&D services providers or set up global capability centers (GCC) for their engineering R&D activities, with ~ 75 per cent of such centers located in India. More companies are expected to increase their India presence as the country is fast becoming a hub for digital engineering skills. The increased comfort levels with decentralized/remote engineering R&D teams and the proven ecosystem the country offers are indeed securing the future of world engineering services in India. At the launch of Booz Allen Hamilton's report 'Globalisation of Engineering Services: The Next Frontier for India' in 2006 B.V.R. Mohan Reddy is Founder Chairman CYIENT and author of Engineered in India: FromDreams to Billion-Dollar CYIENT mohan.reddy@cyient.com Engineered in India: Co-creating the Future by B.V.R. MOHAN REDDY From being looked askance 30 years ago to becoming the preferred engineering and R&D services destination, India has come a long way in building trust, skills, and innovation to earning international reputation and securing the future of the world's engineering needs | 16 | | 17 |
As supply chains become increasingly complex, GEP enables global enterprises to drive sustainable competitive advantages | 18 | VIEWPOINT: GEP “India’s worldclass talent enables us to keep client operations running despite challenges” 1. How are you using India’s competitive edge to become a global leader in supply chain and procurement solutions? GEP supports more than 500 world-leading enterprises, including Bayer, Bristol Myers Squibb, Caterpillar, ExxonMobil, and Walmart. Enterprises have been under immense pressure during the past several years with disruptions, lockdowns, shortages and war. In a nutshell, India’s world-class consulting and engineering talent enables us to keep our clients’ operations running in the face of extraordinary challenges. Businesses today rely on algorithms to improve decisionmaking and overall performance. India’s capabilities and commitment to leadership in technology, mobility, client service, education and training, and a culture that embraces the world are the secrets to our company’s growth and success. The global economy faces the prospect of an economic recession and a sharp rise in credit costs this year. Is this a challenge or an opportunity for an India-based company to grow faster than your global peers? Today, everycompany ineverycountry is facingthechallenge of record inflation in global supply chains. To combat nearterm inflation and advance sustainability, businesses are rapidly remaking their entire value chains. They’re investing in new plants and capabilities, consolidating suppliers, and rethinking inventories to drive value. All this while trying to reduce supply chain emissions, which account for up to 90% of a company’s total environmental impact, and its long-term systemic challenge. What India-based companies need to forge is a new model of sustainable businesses. We can leapfrog other economies by accelerating investment in cleaner energy sources, software and AI to drive more efficient global supply chains and operations. As a nation, we intuitively appreciate and understand scarcity. We must provide sustainable solutions to global companies and other economies. This is our greatest opportunity for the next decade. How are you positioning your company to gain from the current global uncertainty and challenges? First, GEP is investing in next-gen, AI-based software platforms. We’re launching our low-code platform, GEP BUILD, which enables enterprises to quickly tailor and deploy our procurement and supply chain solutions. The era of multiyear, multimillion-dollar ERP implementations is dead. Enterprises today need agile and easily deployable platforms to manage their complex, multi-tier procurement and supply chain operations. Subhash Makhija CEO and Co-Founder, GEP Worldwide | 19 | Second, we’re partnering with Apollo and BNP Paribas, tocouple supplychainfinancingwithournext-gensoftware, for significantly improving clients’ supply chain visibility, resilience and working capital. It’s groundbreaking. Third, we recently launched a “GxP”-compliant functionality, enabling pharmaceutical companies to track and trace every ingredient across their supply chains, guaranteeing the quality and integrity of the drug. More broadly, we’re enabling companies to track their environmental impact across the entire global supply chain to support efforts to cut their emissions. Underpinning all of our innovations are our continuing efforts to attract and invest in talent. Last month, we opened our third Indian office. Most of our employees are located in India. Moreover, we’re expressly focused on attracting and developing women at GEP. Growing at an average of 20% annually, GEP is a privately held minority- and women-owned business where giving back is an integral part of its purpose and DNA. For too long, career opportunities in software and consulting have been skewed more towards men. Imagine the advantages Indian companies will have with more of our population, and more amazing women, in our talent pool. What opportunity does India’s fast-growing tech sector provide to global companies? This is a pivotal time. The pandemic and lockdowns demonstrated to every organization that there is no longer a need to source talent and expertise from expensive cities like New York City, London, Tokyo, and Silicon Valley. They can tap into brilliant people anywhere in the world. This is a generational opportunity for India-based companies, especially in software and services, to demonstrate a compelling value proposition. Companies are now looking for talent anywhere and everywhere on the planet. Distance and location are no longer insurmountable for most organizations. The pandemic has led to unprecedented growth in IT services and technology exports from India. How long will this tailwind last? It’s important to focus on providing solutions to the current challenges of companies, beginning with combating inflation, which is dragging down demand and hampering investment. There are important lessons from the pandemic, which is impacting the availability of goods and materials, primarily in China. But, it’s time to focus on delivering solutions for the current set of challenges. Whatmore can Indiado toadvance its leadership in technology and tech-based services and other critical sectors? First, India’s greatest competitive advantage is our people. We must continue to invest in developing highly skilled, creative, entrepreneurial and compassionate talent. Second, accelerate our investment in green energy and more environmentally sustainable products and services to become a leader in new, sustainable solutions and processes, across every facet of business and society. Third, we’re in an arms race for expertise and capability in AI, software, and advanced analytics. • Enterprises today need agile and easily deployable platforms to manage their complex, multi-tier procurement and supply chain operations.
KIIT Nurturing future entrepreneurs, Olympians & thought leaders Set up with only `5000, two teachers & 12 students in 1992, KIIT today offers more than 400 programmes across disciplines SPECIAL FEATURE: Kalinga Institute of Industrial Technology | 20 | The Kalinga Institute of Industrial Technology (KIIT) at Bhubaneswar in Odisha is much more than just a learning ground for the tens of thousands of students who have passed out from here. The Deemed-tobe-University has anchored successful start-ups, groomed Olympians and produced corporate leaders who have contributed richly to the economy both at home and abroad. As KIIT celebrates its silver jubilee this year, one is reminded of the challenges the university had to overcome to emerge as a premier centre of learning. It has been adjudged the 20th-best University in the country by the Ministry of Education’s National Institutional Ranking Framework (NIRF). It enjoys strong industry-academia linkages and research accomplishments. The National Assessment and Accreditation Council of India has accorded it an A++ grade, a coveted status enjoyed by very few universities in the country. The credit for this remarkable transformation of KIIT in a short span of 25 years goes to Founder Dr Achyuta Samanta. Dr Samanta started KIITwith only Rs 5,000, 12 students and two teachers in early 1992. Today, the institute is home to more than 30,000 students and also runs two well-known centres under its aegis. They are the Kalinga Institute of Social Sciences (KISS), the largest university worldwide for indigenous students and the Kalinga Institute of Medical Sciences (KIMS). “KIIT is home to one of the most diverse campuses in India and is a veritable melting pot of nations, cultures and ethnicities.” KIIT offersmore than 400 programmes across disciplines and comprises over 3,000 faculties and researchers. KIIT is home to one of the most diverse campuses in India and is a veritable melting pot of nations, cultures and ethnicities. It enjoys an enviable reputation of having the largest number of foreign students on any campus in Eastern India. The Founder has often described KIIT as a successful social venture that has no parallels in the education sector. While educational institutes set up around the same time continue to struggle for recognition, KIIT has not only emerged as a sought-after destination for engineering aspirants, but it also draws students from 65 different countries and is ranked in the cohort of 601-800 in the Times Higher Education’s World University Ranking for 2023. Estimates suggest that over 2 lakh indirect employment opportunities have been generated by KIIT over the last two decades. The mushrooming of commercial enterprises in and around the sprawling 25 sq km campus and an ongoing real estate boom illustrates the socio-economic impact brought by KIIT in the state of Odisha in general and the state capital Bhubaneswar in particular. What makes KIIT an ideal destination for students is the thrust on research activities and an enabling ecosystem that supports new ideas. KIIT has funded research projects worth over Rs 300 crore over the years. KIIT boasts 36 research centres of excellence within the Central Research Facility spread over 1 lakh sq ft. A substantial portion of the University’s budget is allocated to students’ research projects. The University also assists with research paper presentations at national and international conferences. Taking advantage of KIIT’s academic collaborations, a large number of students are admitted to the world’s top universities every year. For the industry, KIIT has emerged as a sought-after destination for hiring the best minds. It has placed 65,000 alumni through on-campus placement. In 2022, over 700 In 2022, over 700 companies visited the campus with 6,010 job offers. companies visited the campus with 6,010 job offers. In 2021, the campus achieved record placement with over 350 top companies committing more than 5,000 job offers for 3,500 eligible B.Tech students. Five students of 2022 batch have bagged the highest CTC of Rs 52 lakh per annum. What makes KIIT a sought-after destination for higher education is its curriculum and sustained focus on research and innovation. The curriculum design is flexible and KIIT offers an open credit system with multiple entry and exit options. It has redefined engineering education in the country and set benchmarks in teaching pedagogies and research outputs. The engineering programmes provide exposure to real field issues through a variety of academic activities at undergraduate, postgraduate and doctoral levels. Most of the engineering departments have adopted the novel concept of a ‘tutor mentorship programme’, attaching 10-15 students with experienced faculty who help, guide and nurture them through regular interactive sessions. This initiative also helps students resolve personal problems. The Ministry of Education’s NIRF 2022 has awarded the University high scores in parameters such as teaching, learning and resources and graduation outcome. In the ‘outreach and inclusivity parameter’, the university got a score of 77.86. It was ranked the 8th best University in the world in the prestigious Times Higher Education Impact | 21 |
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