Dear Reader
I've just returned from a typically invigorating 10 day visit to India, where I visited Hyderabad, New Delhi and Mumbai. It was a good time to visit. The New Year has brought encouraging news: inflation dropped by two per cent; and the government notified 100 per cent FDI in single brand retail and 49 per cent FDI in airline carriers. I also found great enthusiasm for the UKIBC Networking Summit, which is taking place in Manchester on 14 March.
Despite some Indian business leaders voicing concerns late last year about the business environment, I have to say I encountered a strong sense among the business community that the environment and growth were going to improve. I met several British and Indian company executives including from Mahindra & Mahindra, TCS, Bharti, Pizza Express, Balfour Beatty and Yoghurty, and also addressed the Confederation of Indian Industry Partnership Summit in Hyderabad. (My speech, "Corporate Global Citizenship in the 21st Century" is on the UKIBC website.
The political environment remains, as ever, fascinating. The mid-March election in Uttar Pradesh dominates, and current indications are that the current Chief Minister, Mayawati, will not win another majority. So a period of coalition may be in the offing. Looking eastwards to West Bengal, Mamata Banerjee has no such coalition issues following her sweeping victory in the state election last may. There are concerns, though, that she is not "business friendly". She strongly opposed the FDI in multi-brand retail reform in November and December, which was perhaps the single biggest reason why the Government had to perform their u-turn. And she is taking a hard and fast stance on land for industry. Looking to secure her new rural voters, she has placed the burden of land acquisition squarely on investors. Which is a significant disincentive. Saying that, as few UK companies looking to set up in West Bengal will require land this need not be a deterrent for British businesses looking at the state.
I mentioned earlier the keen interest in India in the UKIBC Summit. This will be the largest India business event of the year and will take place at the Bridgewater Hall in Manchester on 14 March. Our tickets are selling twice as fast as last year, which is no doubt partly due to the fact that we have Mr Chandrasekaran, the Global CEO of TCS giving the keynote address. The positive response is also, I'm sure, down to the array of essential, practical advice we will provide to businesses. For example, there will be experts on hand to advise on trade finance, HR, company formation, IP, taxation, banking, export documentation, marketing and all those other elements that go in to a successful market entry strategy. You can learn more about the event at www.ukibc.com/summit. I hope to see you there.
Yours sincerely
Richard Heald
Chief Executive
UK India Business Council
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