In conversation with Deepak Bagla – Innovation in the economy

Mr Deepak Bagla, Managing Director & CEO, Invest India

"To be competitive in the global marketplace, organizations need to be driving more innovation in their products and services. " says, Mr Deepak Bagla, Managing Director & CEO, Invest India, in an interview with Dr. Rakhi Rashmi, Barrister England and Wales

Mr Deepak Bagla, Managing Director & CEO, Invest India

Mr. Bagla is currently Managing Director & CEO of Invest India, the national investment promotion and facilitation agency for India. Invest India is a joint venture between DIPP (Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India), FICCI (Federation of Indian Chambers of Commerce & Industry), and State governments of India. The primary mandate of Invest India is to promote and facilitate investments into India and the agency has been supporting Government of India in the “Make in India” initiative.

1. What do you see as the major innovation opportunities in each stage of the value chain, work architecture and future constructs of development in the UK-India collaborative universes?

To be competitive in the global marketplace, organizations need to be driving more innovation in their products and services. They need to innovate rapidly and they need to do it cost-effectively. This has been a need that has grown over the last several years.

Innovation can manifest itself in multiple ways, whether in a technology change that determines the products and services you deliver, or a business model change that defines the value you deliver. Companies must determine the types of innovation they need—incremental, breakthrough, or radical:

• Incremental innovations make small changes to a company’s existing technologies and business models
• Breakthrough innovations make significant changes to either the technology or business model, producing significant growth
• Radical innovations, which take place more rarely, combine technology and business model innovation to create major new industries with exponential growth.

We see following innovation opportunities:

• Tie ups at institutional levels
• Skill development
• Collaborative R&D work across sectors
• Sharing of ideas between industry and academic institutions
• Sharing of best practices
• Promoting innovation at company levels by acknowledging the same in the form of recognitions.
• Technology tie ups

2. Given both countries want to grow their economies through manufacturing, and related sectors such as infrastructure, services etc. should we identify areas of common interest and come up with a plan to grow our industrial economies together?

We in India look forward to engaging more meaningfully and actively with a cross-section of British industry, the financial sector and the Government. The institutional mechanisms are in place; the political will exists. It is for entrepreneurs on both sides to grasp what beckons.

• Both countries should identify specific investable projects in various sectors.
• Both countries should work on promoting joint ventures in strategic areas like defence.
• Academic institutions at both countries should try to establish relationships for encouraging innovation & R&D activities.
• Creating avenues for funding start-ups.
• Both countries should identify sectors where trade relationships can be enhanced.

3. What is the best way for developing this interaction/dialogue to its next stage happen?

We can have following mechanisms to take this initiative to the next level.

• Popularizing innovations through media platforms in each other country.
• Creation of crowd funding platforms.
• Constitution of investment cell in IPA’s of both agencies to be funded by respective governments.
• Tie ups at industry and government level for promoting innovation.
• Tie up of academic institutions to develop mechanisms to foster innovation and exchange of ideas.
• Investment cell to undertake activities of research, facilitation, promotion and targeting.
• Quarterly B2B meetings.
• Creation of platform for sharing innovative ideas by industry.
• Bilateral investment promotion events.

4. What infrastructure mechanisms could we share or exchange to make a real difference?

We can have following routes for enhancing ties between the two countries:

• Creation of portal for frequent exchange of ideas.
• Regular meetings through video conferencing, physical meetings etc.
• Nominating an officer from the country to work in other country investment cell.
• Joint ventures or technological collaborations
• Inbound and Outbound delegations to each other country.
• Creating mechanism for start-up funding.
• Regular interactions at school, university, research institutes level.
• Sharing of data on regular basis.
• Monthly newsletters on various aspects.

5. What emerging economic opportunities in each country can we address in partnership?

We can address the following economic opportunities:

Trade and investment flows between our two countries have evolved in a reasonable manner particularly over the last four to five years.

India is today among the fastest growing economies in the world and given our high and growing savings rate, growth of 9pc and perhaps even higher is sustainable. We would very much like British companies to be part of this growth experience and share the benefits that derive from it. This is particularly so since, at a time of economic difficulty, India offers to the UK economy unparalleled opportunities that can help revive manufacturing and employment in the UK and also provide a fresh impetus to the City of London.

The focus should be on utilising the enormous opportunities in India in the infrastructure sector. Overall, India offers investment opportunities in excess of over $850bn (£523bn) over the next five years and Foreign Direct Investment (FDI) is not only welcome but encouraged. Policies and procedures for such investment have been radically simplified and rationalised; all investment is granted national treatment; investments, profits and dividends are fully repatriable and the country is a flourishing democracy based on the rule of law.

Other areas of bilateral opportunities include:
• E-commerce.
• Railway and Defence.
• Education.
• IT/ITES.
• Skill development.
• Financial services.
• R&D.

6. What should the role of governments be in this interaction?

The respective governments should provide the following support:

• Providing funding support for creation of dedicated investment cells.
• Resolving issues being presented over by investment cells.
• Taking steps for making it easier to do business.
• Providing specific incentives for innovation, technology collaborations, R&D etc.
• To actively take part in discussions etc.