The India Opportunity Showcased at the IPEF Clean Economy Investor Forum

On the sidelines of the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum, the Department of Commerce and Invest India organised a meeting to showcase various investment opportunities in India.

In his inaugural address Secretary, Department of Commerce, Shri Sunil Barthwal, stressed on how India’s growth rate is nearly double that of other emerging market economies. He remarked on how this strong growth is also leading to a trend of ‘reverse flipping’, where Indian start-ups that once moved abroad for capital access and tax benefits are now returning home. He emphasised how the digital economy along with emerging technologies like AI and rise of data centres were key to future Indian growth.

The meeting held at Marina Bay Sands, Singapore, attracted over 60 participants, including global investors from the US, Singapore, Japan, Australia, Korea, and other countries, as well as India’s private sector and government officials. The event brought together investors and financial institutions from IPEF Member countries like that of Temasek, Global Infrastructure Partners, GuarantCo, Private Infrastructure Development Group (PIDG), Goldman Sachs, I Squared Capital, Mizuho Bank Ltd, Advantage Partners, Nomura, DBS Bank and Citi Bank. The Indian infrastructure and climate tech companies showcased their solutions and engaged with international investors to tap into global markets.

Indian High Commissioner to Singapore, H.E. Dr. Shilpak Ambule, focused on the fundamentals that are driving Indian growth. He said that the investment in physical and digital infrastructure will have multiplier effects on the Indian economy, and that the legislative and regulatory changes have created a pro-market field, providing conducive and predictable policy environment. He stressed on how shifting global supply chains and Indian efforts modernization of infrastructure will enable India to participate in them.

This was followed by an India opportunity presentation in which Invest India showcased the India’s through various government flagship initiatives like a flourishing startup ecosystem, a sizable pool of skilled and talented professionals across diverse industries, a push for investments in infrastructure projects, policy reforms aimed at streamlining regulations, enhancing transparency, and improving Ease of Doing Business.

MD and CEO of Invest India, Ms Nivruti Rai highlighted that India is keen on collaborating with investors, clean economy firms, and innovative startups to drive sustainable infrastructure, climate technology, and renewable energy projects to meet Net Zero targets.

Speaking during the fireside chat titled the Charting India Opportunity, Ms Radhika Rao, Senior Economist and Executive Director, mentioned that India strength is in 4C’s – Consistency & Continuity in Policy and reforms; Increasing Capex through government, household spending and private sector; Composition of trade shifting towards manufacturing sectors; Increasing consumption over the next 5 years.

Ms Sonal Varma, Managing Director, Nomura spoke in detail about the Nomura India report. The report shows that highest number of companies are looking at India than any other geography during their “Bottom’s up” study, a survey of around 130 companies mapping their investments in sectors and country. India is attracting investments in broad based sectors ranging from semiconductor assembly to testing, automobiles to capital goods.

Mr Kunal Agarwal, Managing Director, I Squared highlighted that India is going through Infrastructure Supercycle, which is an enabler for digital revolution and India is viewed as a secular investment opportunity.

During the event, members of the industry expressed highlighted that the inaugural forum was a significant step forward in promoting economic cooperation in the Indo-Pacific region. They emphasized the importance of industries working together to address the challenges they faced and create new opportunities for growth. The forum also underscored the crucial nature of a clean economy and supply chain resilience.

About IPEF and Clean Economy Investor Forum

The Indo-Pacific Economic Framework for Prosperity (IPEF) was launched in May 2022 and currently includes 14 partners – Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States and Vietnam. The IPEF, comprising four pillars of cooperation, namely Trade, Supply Chain, Clean Economy and Fair Economy, provides a platform for countries in the region to collaborate on advancing resilient, sustainable, and inclusive economic growth and aims to contribute to cooperation, stability and prosperity in the region.

The IPEF Clean Economy Investor Forum, one of the initiatives under the IPEF, brought together the region’s top investors, philanthropies, financial institutions, innovative companies, start-ups and entrepreneurs to mobilise investments into sustainable infrastructure, climate technology and renewable energy projects.

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India’s economy and global respect and credibility of India have increased manifold

Vice President of India Shri Jagdeep Dhankhar today delivered the Dr. Rajendra Prasad Memorial Lecture, being organized by Akashvani since 1969 in the memory of the first President of India, Dr. Rajendra Prasad. The topic for this year’s lecture was “Emergence of India as an Economic Superpower”. Addressing the gathering at Broadcasting House, Akashvani, New Delhi, the Vice President said that India’s economy as well as its global respect and credibility has increased manifold in the recent years. “Today, the countries of the world want to listen to India and respect its views and the entire world has recognized the skills and talent of India’s youth. The African Union was granted membership of G20 under India’s G20 Presidency. This is the result of India’s increasing credibility and respect in the world.”

The Vice President pointed out that a decade ago, the Indian economy was counted among the fragile five, but that today it is the fifth largest economy in the world. “The nation has achieved this feat due to the hard work of 140 crore citizens and efficient leadership. India has become the first country in the world to reach the southern end of the Moon. The country has made several achievements in the field of digital public infrastructure and digital payments as well.”

Taking about Prime Minister Narendra Modi’s Mann Ki Baat programme, the Vice President said that it is probably the first programme in the history of radio, which is so regular and has completed the journey of 107 episodes. “The Prime Minister chose radio to communicate with the people and through it, he created a communication revolution. Mann Ki Baat has become Jan Ki Baat of the country and reaches the hearts of the people.”

The Vice President said that the production of some basic goods is necessary to strengthen any country and its economy. “It hurts a lot when India imports small items like candles, lamps, children’s toys and kites. Today, when India is emerging as an economic superpower, there is a need to ensure that the people remain connected to country’s roots and culture.” The Vice President also called upon the citizens to foil the attempts of those tarnishing the image of the country.

Underlining that the country’s youth have the power to take India to the top in Amritkaal, Shri Dhankhar said that India’s re-emergence as a world leader is possible only when every person of the country discharges their duties.

The full text of the Vice President’s lecture can be accessed here.

In his welcome address, Union Information and Broadcasting Secretary Shri Apurva Chandra said that Dr. Rajendra Prasad taught us that the post of President should be independent, non-partisan and outside party politics. The path laid by him is continuing to this day, wherein constitutional posts such as those of President, Vice President and Governor of states are kept out of politics, he added. The Secretary pointed out that Dr. Rajendra Prasad is the only President who served two full terms, having served as the first President of independent India, from 1950 – 1962.

The Secretary recalled that Akashvani has been organizing Dr. Rajendra Prasad Memorial Lecture on December 3, the birth anniversary of Dr. Rajendra Prasad, since 1969.

The Lectures seek to thoroughly evaluate the nation’s political, social and cultural environment. The achievements and the future prospects of the country are also critically analyzed in these lectures. Noted scholars and thinkers of India deliver the Lectures on a subject of their choice before an invited audience.

The first Lecture of this series was delivered in 1969 by Hindi litterateur and thinker, Dr. Hazari Prasad Dwivedi. Former President Dr. Shankar Dayal Sharma, former Prime Ministers Shri Atal Bijari Vajpayee, Shri Chandrashekhar and Shri Vishwanath Pratap Singh; Uttar Pradesh Chief Minister Shri Yogi Adityanath; political leaders Shri Vishambhar Nath Pandey and Shri Yashvant Sinha; litterateurs Smt. Mahadevi Verma, Shri Agyey, Shri Harivansh Rai Bachchan, Dr. Vidyanivas Mishra, Shri Bhishma Sahni, Smt. Gaura Pant Shivani and Shri Krishna Chandra Sharma Bhikkhu are among the distinguished people who have delivered this lecture in the past.

Prasar Bharati CEO Gaurav Dwivedi; Principal Director General, Akashvani News Dr. Vasudha Gupta, officials of Prasar Bharati and I&B Ministry and students of schools and colleges in Delhi attended the programme, at Akashvani’s office in Broadcasting House, New Delhi. The lecture can be watched here.

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India-U.S. partnership is the defining moment of the 21st century

Union Minister of Commerce & Industry, Textiles and Consumer Affairs, Food & Public Distribution Shri Piyush Goyal said that the India-U.S. partnership is the defining moment of the 21st century and reiterated the “ChaleinSaathSaath: Forward Together We Go” motto underscoring the depth of the partnership. During his Inaugural Address on ‘US-India Partnership: Forging Ahead’ at American Chamber of Commerce in India (AMCHAM) India’s 31st Annual General Meeting today in New Delhi, he talked about diversifying and deepening India-U.S. trade and investment ties for mutual growth and prosperity.

The Minister emphasised that the leaders of both the countries, Prime Minister of India, Shri Narendra Modi and President of the United States of America, Mr. Joe Biden, understand each other and work smoothly together to find solutions to complex geopolitical problems around the world. Shri Goyal mentioned the 5Ts-Talent, Technology, Tradition, Trade and Trusteeship- identified by the Prime Minister as the vision for the India-U.S. relationship.

The Minister noted that the bilateral trade between India and U.S. has been the highest in the last couple of years and said that it is aimed to increase multifold in the coming years. He said that the target of US$2 trillion exports by the year 2030 is doable with the increasing eminence and recognition of India across the world and with strengthening partnerships with like minded countries having shared values like the U.S.

Shri Piyush Goyal cited the examples of many Indian companies operating in the U.S. and vice versa and highlighted how significantly they are contributing to each other’s economy. The Minister said that these business relations are deepening the partnership between the two countries. He expressed hope that more and more U.S. based corporations will work together with Indian companies in the near future.

The Minister encouraged companies from the U.S. to establish their base in India and expand to newer frontiers like the markets of Africa and South-East Asia. He said that India offers assured prosperity and growth to the U.S. companies with the recent policy reforms undertaken with focus on the fundamental macroeconomic parameters, affordable labour costs, inclusive and sustainable development and increasing ease of doing business.

The Minister said that the businesses in both countries can work together to expand to the next level in many sectors like defence manufacturing, pharmaceuticals, textiles, engineering products, auto components, electrical products, agricultural products, etc. on the merchandise side while IT, accounting, business processes outsourcing, research & development, tourism, etc. on the services side. He said that the bilateral trade between both the countries is growing rapidly and has tremendous potential to scale further heights. He said that the technical and managerial talent offered by India to businesses around the world cements India’s relationship with the world; he cited the example of many U.S. corporations having Indian or Indian-origin CEOs.

The Minister said that Amrit Kaal is the defining period for India in which the demographic dividend is contributing to the growth of the economy bringing prosperity & future for the country. He said that the reform processes undertaken by the government in the last 9 years will turn India into a global manufacturing hub. He said that the efforts of the government towards improving logistics infrastructure like connectivity, power, etc. is leading to better quality of life for the people of India and enabling the aspirational youth to contribute to the rapid development of India. Shri Goyal stressed that it is important for the industry to stand on its own feet with delivery of high quality products and services with government interference in business to the minimum.

The Minister said that there is multifarious interaction between India and the U.S. at various platforms like the Indo-Pacific Economic Framework for Prosperity (IPEF), U.S.-India CEO Forum, Quad, etc. He said that the comprehensive & strategic partnership between India and the U.S. is based on the strong foundation of shared values, commitment to the rule of law, transparency, freedom of business, freedom of media, independent judiciary, etc. The Minister said that there is complementarity between the India-U.S. economy and both countries collaborate to make prosperous and rational decisions.

He mentioned the significance of the recent visit of United States Secretary of Commerce, Ms. Gina Raimondo to India for the strengthening and deepening of the India-U.S. Partnership. He said that during her visit, Ms. Raimondo met the Prime Minister of India, Shri Narendra Modi and praised his visionary leadership in transforming India. He said that Ms. Raimondo noted the efforts of the Government in eliminating poverty and improving the lives of the people of India through the efficient use of technology and effective policy formulations.

The Minister said that India is committed to the fight against climate change and praised the performance of India as it performed better than the commitments it had made with being among the top 5 countries in performance on climate action. He said that India is consistent in the fight against climate change under the visionary leadership of Prime Minister, Shri Narendra Modi who brought less developed, developing and developed countries together for the signing of the Paris Agreement.

The Minister appreciated the important role played by AMCHAM and the impetus provided by it for the India-U.S. partnership. He said that the collective effort between the leadership of both countries, warmth between people, etc. enables both the countries to partner in uncharted territories for mutual growth and development. The Minister also released two reports at the event: 1. The India edge – US Industries catalysing the growth trajectory and 2. Future of Urban Mobility- Integration of Platforms.

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CEPA is the growth engine for India-UAE bilateral trade

On the occasion of the first anniversary of the implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) today, Commerce Secretary Shri Sunil Barthwal congratulated the people of India and the UAE on the milestone and talked about CEPA’s role as a growth engine for India-UAE bilateral trade over the past 11 months. CEPA is a full and deep Agreement signed on 18 February 2022, during a virtual summit between the Prime Minister of India, Shri Narendra Modi and His Excellency the President of the UAE and Ruler of Abu Dhabi, His Highness Sheikh Mohamed bin Zayed Al Nahyan. CEPA entered into force from 01 May 2022.

The Commerce Secretary said that both sides are continuing to work together to further improve Ease of Doing Business between the two countries. Representatives from Industry mentioned about the experience of leveraging upon the CEPA to register significant growth in their respective sectors.

During the past one year, CEPA has made a significant impact on India’s Bilateral Trade with the UAE and particularly India’s Exports to the UAE (Oil and Non-Oil). The Bilateral Trade between India and the UAE has touched historic highs during FY 2022-23. Trade has increased from US$ 72.9 billion (Apr 21-Mar 2022) to US$ 84.5 billion (Apr 22-Mar 2023) registering a year-on-year increase of 16%. During the CEPA Implementation period (from May 22 to Mar 23), bilateral trade increased from US$ 67.5 billion (May 21-Mar 2022) to US$ 76.9 billion (May 22-Mar 2023) – an annual increase of 14%.

Exports from India to the UAE have also registered a multiyear high. During April-March period, Indian exports to the UAE increased from US$ 28 bn to US$ 31.3 bn; an increase of around US$ 3.3 billion; or 11.8% year-on-year growth in percentage terms. During the same period, growth in India’s global exports was 5.3%, excluding the UAE, India’s global exports grew at 4.8%.

During the CEPA Implementation period (May 22 – March 23), India’s exports to the UAE increased from 26.2 billion (May 21 – March 22) to 28.5 billion (May 22 – March 23); an 8.5% y-o-y growth. During the same period, India’s global exports, excluding the UAE, grew at 3.1%. India’s Imports from the UAE have grown to USD 53.2 billion (an annual increase of 18.8%) during Apr 22 to Mar 23. Non-oil imports during the same period grew by 4.1%.

Some of the key sectors, including labour-intensive sectors, that have witnessed significant export growth on account of the CEPA include: Mineral Fuels; Electrical Machinery (particularly telephone equipment); Gems & Jewellery; Automobiles (Transport vehicles segment); Essential Oils/Perfumes/Cosmetics (Beauty/Skin care products); Other Machinery; Cereals (Rice); Coffee/Tea/Spices; Other Agri Products; and Chemical Products

Utilization of the India-UAE CEPA has been increasing steadily on a month-on-month basis. Number of Preferential Certificates of Origin (COOs) issued under the CEPA increased from 415 in May 2022 to 8440 in March 2023. Over 54,000 COOs issued under the CEPA during the 11-month (May 22 – March 23) period.

Under the India-UAE CEPA in the Goods Domain, the UAE eliminated duties on 97.4% of its tariff lines corresponding to 99% of imports from India. India has obtained immediate duty elimination on over 80% of its tariff lines corresponding to 90% of India’s exports in value terms. Most of these tariff lines correspond to the labour-intensive industries/sectors such as oil seeds & oils, beverages, cotton, fish & fish products, textiles, clothing, gems and jewellery, leather, footwear, pharmaceuticals and many engineering products.

In the Services Domain, broader and deeper commitments have been taken across all the sectors and modes of supply. Out of the 160 services subsectors, India has offered 100 sub-sectors to the UAE and the UAE has offered 111 sub-sectors to India.

Given the significant increase in bilateral trade, particularly in exports of Indian goods and services, CEPA would have had a concomitant positive impact on other key macroeconomic variables such as GDP and Employment.

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