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"Navigating Your Way to Business Success in India" is a seminar hosted by the Columbus, Ohio, law firm of Kegler, Brown, Hill & Ritter on March 10, 2011. ...

"Navigating Your Way to Business Success in India" is a seminar hosted by the Columbus, Ohio, law firm of Kegler, Brown, Hill & Ritter on March 10, 2011.

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Navigating Your Way to Business Success in India Presentation Transcript

  • 1.
  • 2. Central ohio business development Mission to india
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. Photos Courtesy of James Schimmer, Director, Franklin County Economic Development & Planning Department
  • 19. GAME CHANGERS
    INDIA’S SECOND DECADE OF THE 21ST CENTURY
    Kegler Brown, Columbus, Ohio – March 2011
  • 20. Afghanistan
    POK
    China
    Pakistan
    Nepal
    Bhutan
    Bangladesh
    India
    Myanmar
  • 21. 26/11 Terrorist Attack on Mumbai
  • 22. $1.7 Trillion in Infrastructure Required Over Next 5 Years
    20,000 Km of road projects
    150,000 MW of new power plants
    Upgrade of 25 existing airports
    A new air force
    Greenfield development of 25 new airports
    A deep water navy
    12 new port/container projects
    20,000 MW of nuclear power
  • 23. The Next North SeaKrishna-Godavari Gas Discovery
    Largest Refinery in the World Jamnagar
  • 24. The Next North SeaKrishna-Godavari Gas Discovery
  • 25. Organized Retail Enters IndiaUnshackling India’s Farm-to-Market Supply Chain
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32. 300 Million Middle Class
  • 33. Manufacturing Hub of South AsiaSkilled Manpower and a Massive Domestic Market
  • 34. Special Economic Zones (SEZs)
  • 35.
  • 36. Can India Sustain its Competitive Edge ?
    PHARMACEUTICALS
    #1 in Generic Pharmaceuticals
    IPR Protections will need strengthening if India is to become the Innovation Nation of the 21st Century
  • 37. TELECOM
    10 million new cell phone users each month!
    But can transparency issues be overcome as new spectrum is allocated?
  • 38. INFORMATION TECHNOLOGY
    • ICT is still growing at impressive growth rates.
    • 39. But will India adopt Intercept Policies that balance security and commercial interests?
  • India’sCentury
  • 40. WHYINDIA ?
    Coherent democracy; Pluralist/Secular
    • 1/5th World’s Population; 2nd largest military in the world
    • 41. Common Values: Ainst Terrorism, Trafficking, Narcotics
    • 42. Ideological Partner re: Nepal, Sri Lanka, Bangladesh, China
    • 43. Common Law Judicial System
    • 44. 2nd largest number of Doctors, Engineers, PhDs in the world
    • 45. 100,000 Students to U.S. Each Year
    • 46. 1.8 mil Americans of Indian Origin
    • 47. Politically significant; Politically integrated
    • 48. 54% of Indian Population is under the Age of 25
    Indo-U.S. Relations will Shape the Destiny of the 21st Century
  • 49. History in the Making
    Kegler Brown, Columbus, Ohio – March 2011
  • 50. Legal Intelligence andPractical Advice – India
    Presented by Vinita Bahri-Mehra, Esq.March 10, 2011
  • 51. India-US: “Pas-Pas”
    A “Star-Bucks” in Goa, India
  • 52. India-US: “Pas-Pas”
    Self-Service
  • 53. India-US: “Pas-Pas”
    You’re safe here, pal!
  • 54. India-US: “Pas-Pas”
    Just do it.
  • 55. India’s FDI Regime
    100% foreign investment permitted in most sectors on automatic basis except:
    Banking (74%).
    Telecom services (74%).
    Civil Aviation (49%).
    Insurance (49%).
    Retail trading – Single Brand up to 51% with prior approval.
    Certain sectors where FDI is prohibited:
    Atomic Energy.
    Lottery business.
    Gambling and Betting.
    Certain sectors where there are minimum capitalization requirements:
    Non-banking financial services activity (certain activities – fee based and fund based).
    Real estate construction and development projects.
  • 56. Entry Strategies For US Investors: As an Indian Company
    A U.S. company can commence operations in India by incorporating a company under the Indian Companies Act, 1956, through:
    (1) Joint Ventures; or
    (2) Wholly-Owned Subsidiaries.
    Acquisition of shares/business assets of an existing Indian company.
    Consider RBI’s pricing restrictions.
  • 57. As an Indian Company
    “Private Limited Company” is the most preferred option.
    Subject to fewer regulatory compliances.
    Charter documents can be made adaptable to shareholders’ requirements.
    However, restrictions on transfer of shares and borrowings.
  • 58. As a Foreign Company
    U.S. companies can set up their operations in India through:
    (1) Liaison/Representative Office
    (2) Project Office
    (3) Branch Office
    Each can undertake only specified activities.
    Some other variants:
    (1) Build-Operate-Transfer (BOT)
    (2) Third-Party Outsourcing (BPO or KPOs)
    Franchising/Distributions/Agency
    Unincorporated Joint Ventures – “Association of Persons”
  • 59. Are non-compete and non-solicitation clauses applicable?
    Contract Enforcement?
    What is the tax incidence on profits and gains and whether any tax breaks are provided by government? Are repatriation of investments and profits allowed?
    Are there any Labor issues to consider?
    What should be done to protect one’s IP?
    What law should govern the contract and which courts should have jurisdiction to adjudicate on disputes?
    What mechanism of dispute resolution is preferable?
    Key Legal Issues For Doing Business In India
  • 60. A. Non-compete/Non-solicitation
    Every agreement by which anyone is restrained from exercising a lawful profession, trade or business is void. (Section 27 of the Indian Contract Act, 1872).
    Non-compete and non-solicitation are such restrictive covenants.
    Exception: Restrictive covenants that reasonably protect a party’s proprietary or commercial interest post-acquisition of a business with goodwill.
  • 61. Exception: A partial restriction, reasonable in terms of time, geography or other limitations.
    Indian Courts tend to enforce a restrictive covenant operating “during term of employment” and not those “after the term of employment”.
    Non-compete/Non-solicitation, cont.
  • 62. B. Contract Enforcement
    Legal Jurisdiction: Drafting Choice of Law and Forum provisions is crucial.
    Remedies: It’s advisable to negotiate and provide for a liquidated damages and/or penalty clauses in contracts as a safeguard.
    Damages is the primary remedy for breach of contract.
  • 63. Contract Enforcement, cont.
    Performance Guarantees and Bonding
    Contract performance guarantee: Depending on the nature of the contract, your Indian customer/counterpart may request some kind of guarantee to ensure performance obligations.
    Different Forms: These guarantees can be of different forms – usually referred to as bonds. Can include – standby irrevocable LOC, Bank guarantee, and contract surety bonds.
    Clear Obligations: If a performance bond is provided, important to ensure that contract clearly states the performance obligations as well as note the specific conditions under which the bond can be enforced.
  • 64. Contract Enforcement, cont.
    Practical Tips
    Negotiations: Contracts negotiations can be expected to go more slowly in India – particularly if dealing with the Indian bureaucracy.
    Different approaches to communication: Indian parties may not disagree with you directly about contractual issues. Instead they may suggest that matter can be discussed at another time or find some way to avoid an outright negative response.
    Flexibility: It is recommended that US Co., build considerable flexibility into their approach so that prices and other contract conditions can be adjusted.
  • 65. C.Taxation in India
    Dividends declared can be repatriated freely through an authorized Indian bank.
    Dividends are tax-free in the hands of shareholders.
    A distribution tax of 16 % is payable by company.
    Corporate tax rate for foreign companies is 41.2%. For domestic companies, 30.99%.
    Withholding tax on royalties/technical fees/interest income.
    Domestic tax law – 10%.
    Indo-US DTAA – 10% for right to use of any industrial, commercial or scientific equipment.
    – 20% in any other case.
  • 66. The tax rate provision of domestic law could be utilized as it is less than DTAA.
    Service tax rate is 10.3%.
    Computed on the “Gross Amount” charged by the service provider.
    Sales tax rate (CST & VAT). Varies from state to state, depending upon classification of goods. Varies from 0% to 12.5%.
    Tax incentives are available during a limited time for 100% Export-Oriented Unit, under Software Technology Park Scheme and Special Economic Zones Units, etc.
    Taxation in India, cont.
  • 67. Important Taxation Issues
    India’s tax code has elaborate Transfer Pricing Regulations.
    Introduced in 2000/ 2001 for regulating prices at which the international transactions between two related enterprises are undertaken.
    Applicable only to international transactions wherein at least one party is a non-resident of India unlike UK and US where transfer pricing is applicable even to domestic transactions.
    Onerous documentation requirements prescribed under Rule 10D of the Transfer Pricing Rules.
    All entities having an aggregate value of international transactions in a financial year exceeding INR 15 crs (i.e. approx. US $3.3 mn) subject to compulsory transfer pricing scrutiny by the Indian tax authorities.
  • 68. Important Taxation Issues, cont.
    The following methods prescribed for benchmarking international transactions:
    Comparable Uncontrolled Price Method (“CUP”)
    Cost Plus Method (“CPM”)
    Resale Price Method (“RPM”)
    Profit Split Method (“PSM”)
    Transactional Net Margin Method (“TNMM”)
  • 69. Important Taxation Issues, cont.
    Avoidance of Permanent Establishment (“PE”)status is critical.
    PE Concept: A US company’s business profits that are deemed to accrue in India could be subject to Indian taxes, if such business, in part or whole, is carried through a PE in India. If the US company is liable to Indian taxes by virtue of having a PE, the extent of taxation would be confined to profits that can be attributed to such a PE.
  • 70. Important Taxation Issues
    Circumstances that could include a PE are broadly classified under the following heads:
    Basic Rule: Activities done through a fixed place of business.
    Construction Rule: Performance of construction/installation/assembly activities or supervisory activities in connection with such activities for more than 120 days in any twelve month period.
    Service Rule: Where a foreign enterprise through its employees or other personnel renders services in India for a period of 90 days or more.
    Agency Rule: A dependent agent of a foreign enterprise through whom the business of the enterprise in whole or in part, is carried out in India.
  • 71. D. Employment Issues
    Employment Agreement – Advisable to have a detailed document (not a one pager!), read in conjunction with the existing employment policies of the Company.
    Compliance required of both Federal and State laws.
    Important to identify locational advantages; Indian States have restrictions and relaxations.
  • 72. “Without cause” termination for “Workmen” may become subject to:
    “Last come, first go”;
    Some level of compensation based on years of service;
    Sufficient notice to employee; and,
    Employer issuing a release certificate. However, consider the following while issuing release:
    Is there a possibility of breach of confidentiality?
    Is there a possibility of a breach of a non-compete covenant?
    Otherwise “At-Will”employment is recognized.
    Employment Issues, cont.
  • 73. E. Intellectual Property Enforcement
    India is a member of the WIPO; signatory to major harmonization conventions and member of WTO.
    Remedies for IP violation: Civil remedies (injunctions, damages, or accounts) as well as criminal penalties. However, criminal prosecution is available on in trademark and copyright cases, not in ones involving patents or designs.
    Provisional Measures: Injunctions and ex-parte search warrants and seizes orders, known as “Anton Piller”orders, are available through the Indian Courts to stop infringements and to contain damages.
    Fast-track System (specialized forums): Intellectual Property Appellate Board – Appeals on IP prosecution (patents).
  • 74. Intellectual Property Enforcement
    Minimize IP Risks
    “Airtight” Contractual provisions:
    Explicit obligations to ensure that the “receiving” party will protect “disclosing” party’s IP.
    Business practices:
    From the beginning, have a method in place to ensure controlled use of IP rights by the local associates.
    Define IP violation clause.
    Conduct Regular IP Audit.
  • 75. Indian IP Laws do not provide for automatic assignments.
    Golden Rule: Advisable to have a covenant to assign IP in contracts and to obtain Deed of Assignment where required.
    Intellectual Property Rights.
  • 76. Intellectual Property Rights, cont.
    Specific IP issues and related law:
    Patent and Design: Inventor/Author is owner.
    Formal assignment is necessary.
    Term: 20 years from date of filing.
    Registration of “Product Patents” allowed.
    Copyright: IP work is made in course of author’s employment under contract of service, employer is the first owner of copyright therein.
    Subtle difference from the U.S. concept of “works for hire”.
    Term: 60 years from date of publication.
    Possible Dispute: Work made in course of the author’s employment as against work made outside the course of employment.
    Therefore, emphasis is on “scope of employment”.
  • 77. Trademarks and Service Marks:
    Trademark protection extends to shape of goods, packaging and combination of colors.
    Statutory infringement and common law remedy of passing off is available.
    Trade Secrets:
    No specific Indian legislation for statutory protection of trade secrets or confidential information. However, Courts (several precedents) specifically enforce confidentiality agreements through mandatory injunctions.
    Intellectual Property Rights, cont.
  • 78. Indian Courts follow customary Private International Law rules.
    Choice of law made by parties is acceptable.
    Parties may also choose which court will have jurisdiction.
    Subject to public policy, courts recognize and enforce foreign laws.
    It is possible to split contract, to allow different parts to be governed by different laws.
    Absent choice, courts determine proper law of contract.
    Law with the closest connection to transaction.
    G. Jurisdiction and Laws Governing Contract
  • 79. Caveat:
    However, certain issues may be subject to a law different from one agreed upon by parties.
    For example: IP transfer, registration, protection in vendor territory, real estate, labor laws, bankruptcy, enforcement of foreign judgment/award.
    Jurisdiction and Laws Governing Contract, cont.
  • 80. H. Dispute Resolution
    Litigation vs. Arbitration
    (i) Litigation-Enforcement of Foreign Judgment.
    Judgments from courts in “reciprocating territories” can be enforced directly by filing before an Indian Court an Execution Decree.
    The United Kingdom of Great Britain and Canada are noted as “reciprocating territories”.
    Presently, U.S.A. is not declared as a “reciprocating territory”.
  • 81. Dispute Resolution, cont.
    Judgments from “non-reciprocating territories”, such as the U.S.A, can be enforced only by filing a law suit in an Indian Court for a Judgment based on the Foreign Judgment.
    The foreign judgment is considered only as evidence.
    Such a law suit is to be brought within 3 years of foreign judgment.
    Likely a long and slow procedure as the Indian Courts are overburdened.
  • 82. Dispute Resolution, cont.
    (ii) Arbitration-Enforcement of Foreign Arbitral Award.
    India is a party to the New York Convention, 1958.
    U.S. arbitral awards on commercial disputes are directly enforceable in India through foreign award being made a Decree of the court.
    Indian Courts may grant preliminary injunctions and other protective orders pending international commercial arbitration.
    An arbitration clause can avoid the time consuming and sometimes ineffective process of seeking damages through the civil courts in India.
  • 83. There are some internal barriers that might provide obstacles in doing business or establishing business in India. It is necessary to be cognizant about them in order to be well prepared. For example:
    Corruption.
    Poverty.
    Infrastructure mess.
    Understanding the changes in real estate.
    Surfacing of stringent Corporate Governance.
    Bureaucracy.
    Negotiating style differences.
    Practical Advice: Identify the Obstacles
  • 84. Things to Ponder
    Analyze your long-term objectives and accordingly decide on Entry Strategies and related tax structuring.
    Analyze and identify the region/state most appropriate for your business needs.
    Do Business in India…the Indian Way: ‘Think Global, Act Local’
    The Indianized Chinese
    Kellogg's – no to cold cereals?
    KFC – Tandoori Chicken preferred to the ‘KFC experience’
    McDonalds – ‘McVeggie Burger’ & ‘McAloo Tikki’
    Domino’s – ‘Pepper Paneer’ & ‘Chicken Chettinad’
    Pizza Hut/Pizza Express – spicing it up
    Due Diligence is the Key
    Knowledge of Indian business and legal environment leads to steady growth.
  • 85. Legal Advice
    This presentation is designed to provide an overview of a number of legal principles and considerations.
    As each legal issue is fact dependent, this presentation should not be used or viewed as legal advice, and your legal counsel should be consulted on the application of your particular factual situation to the current law.
    Copyright: 2010 Kegler, Brown, Hill & Ritter
  • 86. Thank You
    Vinita Bahri-Mehra, Esq.
    Kegler, Brown, Hill & Ritter Co., L.P.A.
    65 E. State Street, Suite 1800
    Columbus, Ohio 43215, USA
    Direct Dial: 1 614 225 5508
    Fax: 1 614 464 2634
    Email: vmehra@keglerbrown.com
    Web Address: www.keglerbrown.com
  • 87. N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
    March 2011
    Anil Bhalla
    Vice Chairman, Investment Banking
    anil.bhalla@jpmorgan.com
    T: 212 622 4605
    S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L
  • 88. English_General
    This presentation was prepared exclusively for the benefit and internal use of the J.P. Morgan client to whom it is directly addressed and delivered (including such client’s subsidiaries, the “Company”) in order to assist the Company in evaluating, on a preliminary basis, the feasibility of a possible transaction or transactions and does not carry any right of publication or disclosure, in whole or in part, to any other party.This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan.Neither this presentation nor any of its contents may be disclosed or used for any other purpose without the prior written consent of J.P. Morgan.
    The information in this presentation is based upon any management forecasts supplied to us and reflects prevailing conditions and our views as of this date, all of which are accordingly subject to change.J.P. Morgan’s opinions and estimates constitute J.P. Morgan’s judgment and should be regarded as indicative, preliminary and for illustrative purposes only.In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us by or on behalf of the Company or which was otherwise reviewed by us.In addition, our analyses are not and do not purport to be appraisals of the assets, stock, or business of the Company or any other entity.J.P. Morgan makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax or accounting effects of consummating a transaction.Unless expressly contemplated hereby, the information in this presentation does not take into account the effects of a possible transaction or transactions involving an actual or potential change of control, which may have significant valuation and other effects.
    Notwithstanding anything herein to the contrary, the Company and each of its employees, representatives or other agents may disclose to any and all persons, without limitation of any kind, the U.S. federal and state income tax treatment and the U.S. federal and state income tax structure of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Company relating to such tax treatment and tax structure insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy provided to the Company by J.P. Morgan. J.P. Morgan's policies on data privacy can be found at http://www.jpmorgan.com/pages/privacy.
    J.P. Morgan’s policies prohibit employees from offering, directly or indirectly, a favorable research rating or specific price target, or offering to change a rating or price target, to a subject company as consideration or inducement for the receipt of business or for compensation.J.P. Morgan also prohibits its research analysts from being compensated for involvement in investment banking transactions except to the extent that such participation is intended to benefit investors.
    IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone not affiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
    J.P. Morgan is a marketing name for investment banking businesses of JPMorgan Chase & Co. and its subsidiaries worldwide. Securities, syndicated loan arranging, financial advisory and other investment banking activities are performed by a combination of J.P. Morgan Securities Inc., J.P. Morgan plc, J.P. Morgan Securities Ltd. and the appropriately licensed subsidiaries of JPMorgan Chase & Co. in EMEA and Asia-Pacific, and lending, derivatives and other commercial banking activities are performed by JPMorgan Chase Bank, N.A.J.P. Morgan deal team members may be employees of any of the foregoing entities.
    This presentation does not constitute a commitment by any J.P. Morgan entity to underwrite, subscribe for or place any securities or to extend or arrange credit or to provide any other services.
    N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
  • 89. India – Economic Profile
    1
    India – A Glass Half Full?
    11
    Opportunities for Foreign Companies in India
    12
    Best Practices for Foreign Companies doing Business in India
    15
    India’s Financial Framework
    18
    N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
    Basic Regulations in India
    20
    J.P.Morgan in India
    22
  • 90. India at a glance
    Overview
    Key statistics
    • Located in South Asia, it is seventh largest country by geographical area and the second most populous country
    • 91. India is the world’s largest democracy
    • 92. World’s twelfth largest economy at market exchange rates
    • 93. Fourth largest economy in the world on purchasing power basis after USA, China and Japan
    • 94. Strong legal system with a fair and independent judiciary. Largely based on English law
    • 95. Well developed capital markets — Bombay Stock Exchange is Asia’s oldest stock exchange
    • 96. Strong domestic consumption with a personal disposable income growth CAGR of 13.8% (2009-14E)
    • 97. Important cities in India:
    • 98. Mumbai (Key commercial center / financial capital)
    • 99. New Delhi ( Political capital)
    • 100. Bangalore, Hyderabad, Chennai, Pune and Calcutta (other important cities)
    • 101. These cities account for over 80% of business establishments in India
    • 102. There are over 3,000 MNCs operating in India including a number of small companies in the IT/BPO space
    • 103. Indian banking sector was not affected during the recent credit crisis and has emerged much stronger and efficient than before
    I N D I A   –   E C O N O M I C   P R O F I L E
    1
  • 104. Huge growth potential with opportunities across sectors
    A young population
    Savings & capital formation
    Rising per capita income (US$)
    (Median Age–2010)
    (as % of GDP)
    I N D I A   –   E C O N O M I C   P R O F I L E
    Source: CSO, UN
    2
  • 105. India has evolved dramatically over the last two decades…
    Country Overview
    Real GDP growth of India (% y-o-y)
    • 11th largest economy in terms of GDP. 4th largest on PPP basis after US, China and Japan
    • 106. Stable and institutionalized democratic political system
    • 107. Established administration, commercial, legal, accounting & banking systems
    • 108. Third largest English speaking manpower base in the world
    • 109. R&D base for over one hundred Fortune 500 companies
    • 110. Vibrant capital market with more than 5,000 listed Companies
    V-Shaped recovery
    8%
    6.1%
    …but exports have become increasingly important
    Domestic demand remains the key driver for GDP growth
    I N D I A   –   E C O N O M I C   P R O F I L E
    GDP (US$bn)
    The vast majority of manufacturing output is now exported
    Domestic demand % GDP
    Source: Global Insight, IMF
    Source: RBI
    3
  • 111. Tracing the Growth– 1500 to 2050
    I N D I A   –   E C O N O M I C   P R O F I L E
    Source: Angus Maddison (OCDE)
    4
  • 112. % of India’s imports in 2009-10
    % of India’s exports in 2009-10
    India’s trade has grown 16% annually since 2005
    Current trade flows
    EU
    18%
    EU
    15%
    US
    11%
    UAE
    7%
    China & HK
    12%
    UAE
    13%
    US
    6%
    China & HK
    10%
    Singapore
    4%
    Singapore
    2%
    I N D I A   –   E C O N O M I C   P R O F I L E
    India trade volumes (US$ bn)
    5
  • 113. Services and Industrial Production constitute a dominant share of the GDP
    GDP by industry–Services driven economy
    Industrial production growth
    I N D I A   –   E C O N O M I C   P R O F I L E
    Index sa, Sep 2008 =100
    Index sa, Sep 2008 =100
    Source: Global Insight, IMF
    6
  • 114. Other key financial metrics
    Forex reserves are very healthy
    FDI flows have been very robust
    FDI Inflow ($Bn)
    Forex Reserves ($Bn)
    Source: Department of Industrial Policy & Promotion, India Govt
    India’s debt remains relatively low
    I N D I A   –   E C O N O M I C   P R O F I L E
    Total external debt to foreign exchange reserves (%)
    Total external debt as of Dec-10 (US$bn)
    Source: Ministry of Finance, Government of India and Reserve Bank of India, Moody’s Statistical Handbook
    * India’s external debt is as of Mar-09, Mar-10 and Mar-11E
    7
  • 115. Fiscal Deficit - an area of concern
    The government seems committed to tackling India’s Achilles heel
    Central Government Fiscal Deficit
    % of GDP
    I N D I A   –   E C O N O M I C   P R O F I L E
    Refers to fiscal year; forecasts for 2012 and 2013 are as per the 13th finance commission which the government has pledged to implement
    8
  • 116. Congress and Third Front Coalition
    1991–1998
    BJP led NDA coalition
    1998–2004
    Liberalization has become invariant to political formulation
    FDI Inflows ( $MM)
    Congress led UPA coalition
    2004–till date
    I N D I A   –   E C O N O M I C   P R O F I L E
    • Focus on speeding up reforms : Disinvestment
    • 117. Opening up more sectors for investments
    • 118. Public- Private partnerships
    • 119. Infrastructure a key area
    • 120. Boost to regional trade
    • 121. Opening up of Insurance and telecom sectors further
    • 122. Rapid growth in key infrastructure sectors through private sector participation
    • 123. Privatization of large state owned enterprises
    • 124. FDI caps raised for the key sectors
    • 125. Opening of most sectors to majority foreign holding, except defense and railways
    • 126. De-licensing of industry and foreign trade
    • 127. Foreign investment limits raised in key sectors
    • 128. De-regulation of the petroleum sector
    • 129. Opening up of the insurance sector to domestic and foreign competition
    9
  • 130. Infrastructure will be a key enabler of future growth
    Infrastructure investment required
    • Indian economy has capacity to continue to expand significantly
    • 131. Investment in infrastructure required to sustain India’s economic progress
    • 132. Major government focus in Energy and Transportation
    • 133. Investment in infrastructure growing due to:
    • 134. Increased political commitment
    • 135. Linking of economic benefits from infrastructure
    • 136. Encouraging private sector participation
    • 137. Private sector actively involved in telecommunications, commercial and industrial investments
    • 138. Significant opportunity for U.S. companies
    • 139. U.S. is one of India’s largest trading partners
    • 140. Bilateral merchandise trade greater than $40bn
    • 141. However hurdles remain...
    Future infrastructure investment
    I N D I A   –   E C O N O M I C   P R O F I L E
    Projected spending from FY07-FY12
    Expect US$500bn+ in selected infrastructure segments
    Source: PwC–“Infrastructure in India”
    Source: 11th 5 year Plan–Indian Government and PwC
    10
  • 142. India – Economic Profile
    1
    India – A Glass Half Full?
    11
    Opportunities for Foreign Companies in India
    12
    Best Practices for Foreign Companies doing Business in India
    15
    India’s Financial Framework
    18
    N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
    Basic Regulations in India
    20
    J.P.Morgan in India
    22
  • 143. India – A Glass Half Full ?
    Positives
    Challenges
    Strong democratic institutions
    Demographic profile
    Sustainable reforms agenda
    High growth rates
    Balanced economy – domestic
    consumption and exports
    High domestic savings
    Large manufacturing as well as R&D base
    Well regulated banking sector
    Fiscal deficit
    High inflation
    Weak infrastructure
    Slow pace of reforms
    Legal system & labor laws
    need more focus
    Complex regulations
    Improvement in education system
    I N D I A   –   A   G L A S S   H A L F   F U L L ?
    11
  • 144. India – Economic Profile
    1
    India – A Glass Half Full?
    11
    Opportunities for Foreign Companies in India
    12
    Best Practices for Foreign Companies doing Business in India
    15
    India’s Financial Framework
    18
    N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
    Basic Regulations in India
    20
    J.P.Morgan in India
    22
  • 145. Active promotion of foreign investments
    FDI in India
    FDI policy
    • The government came out with ‘Consolidated FDI Policy’ document in March 2010, to ensure a more transparent regulatory framework
    • 146. With the liberalization of the foreign investment restrictions, the emphasis is now shifting to accelerating investments by reducing bureaucratic hurdles and regulatory uncertainties
    • 147. Sectors such as services, IT, telecom, housing and construction have attracted maximum FDI over the last 10 years
    100% FDI through automatic route
    • Power generation
    • 148. Highways, ports, new airports & harbours
    • 149. Townships, residential, construction & SEZs/ Industrial Parks
    • 150. Hotels & tourism, roads
    • 151. Technology
    • 152. Petroleum & natural gas
    • 153. Metals & mining
    • 154. Coal (for steel, iron, cement and for captive mining)
    <100% FDI through automatic/ approval route
    Up to 74%
    Up to 49%
    Up to 26%
    Distribution of FDI across sectors (FY00–FY10)
    • Private sector banking
    • 155. Telecom
    • 156. Airlines
    • 157. Insurance
    • 158. Print media
    O P P O R T U N I T I E S   F O R   F O R E I G N   C O M P A N I E S   I N   I N D I A
    Others 29%
    Services 22%
    Electrical equipments 2%
    Computer hardware& software 9%
    Chemicals 2%
    Prohibited sectors
    • Real estate
    • 159. Retail trading (multi-brand)
    • 160. Agriculture
    • 161. Atomic energy
    • 162. Gambling & betting
    • 163. Lottery business
    Petroleum & natural gas 2%
    Telecom 8%
    Metallurgical inds. 3%
    Housing/Real estate 8%
    Automobile 4%
    Construction activities 7%
    Power 4%
    Total = US$113bn
    Source: Reserve Bank of India
    Notes: Figures for FY10 includes data till Jan-10
    12
  • 164. Health Care
    IT/ITES
    Retail
    Media
    Infrastructure
    Auto
    Financial Services
    Telecom
    Opportunities for Business
    O P P O R T U N I T I E S   F O R   F O R E I G N   C O M P A N I E S   I N   I N D I A
    13
  • 165. Entry strategy for an MNC
    Options
    As a Foreign Company
    • Liaison / Representative Office: Liaison offices can be set up to play a limited role of information exchange, to promote export/import from/to India & also facilitate technical/financial collaboration between parent company and Indian companies
    • 166. Project Office: Foreign companies planning specific projects can set up temporary project/site offices. No RBI approval required. Cannot undertake or carry on any activity which is not related to the execution of the project
    • 167. Branch Office: Foreign companies engaged in trading or manufacturing can setup branch offices post obtaining RBI approval. Scope of activities are defined by RBI in its approval
    • 168. Joint Venture or technical/trademark license: Foreign company with an Indian joint venture requires a no objection certificate from such Indian company and FIPB approval
    • 169. Purchase of Shares or Direct Investment in Local Company: Approval required from Foreign Investment Promotion Board excluding sectors permitted to proceed via Automatic Approval Route
    • 170. Wholly Owned Subsidiary (WOS): i.e. private limited company. FIPB approval needed
    • 171. Public limited company: Recent norm of minimum 25% public holding in all listed Indian entities. To be implemented over the next 3 years
    As an Indian Company
    O P P O R T U N I T I E S   F O R   F O R E I G N   C O M P A N I E S   I N   I N D I A
    • Bank Accounts - Only Onshore Indian Rupee (INR) non interest bearing checking accounts allowed and Resident Indian Companies having export proceeds can open Onshore Foreign Currency Accounts
    • 172. Foreign Currency – INR not convertible on Capital Account but fully convertible on Current Account
    14
  • 173. India – Economic Profile
    1
    India – A Glass Half Full?
    11
    Opportunities for Foreign Companies in India
    12
    Best Practices for Foreign Companies doing Business in India
    15
    India’s Financial Framework
    18
    N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
    Basic Regulations in India
    20
    J.P.Morgan in India
    22
  • 174. Industry Best Practices
    Credit & Surplus Cash
    • Optimum level of capital – Identify sources for borrowings on shore and off shore for working capital / capex/ imports and exports
    • 175. Credit- Reliance on intercompany for Capex (ECB) and local borrowings for working capital – combination of Short term loans , overdrafts and FX lines.
    • 176. Identify exact requirements before borrowing – export loans and import buyers credit are available in foreign currency with pricing pegged to libor – hence , works out cheaper than local INR borrowing. Overall blended cost can be reduced substantially.
    • 177. Surplus funds : there is no interest on current account, however, banks are permitted to offer short terms deposits starting from 7 days.
    • 178. Other alternatives for parking short term funds- liquid funds/ treasury funds investing in AAA rated securities.
    • 179. USD balances cannot be placed as deposits
    B E S T   P R A C T I C E S   F O R   F O R E I G N   C O M P A N I E S   D O I N G   B U S I N E S S   I N   I N D I A
    15
  • 180. … Industry Best Practices
    Local Banking
    • No interest on current accounts
    • 181. No notional pooling/ netting off
    • 182. Usually, companies open an INR account and a Foreign currency – EEFC account for export proceeds
    • 183. Park funds in EEFC and convert as and when required
    • 184. Use the INR account for effecting local payments- vendor, tax, payroll, others
    • 185. Huge shift towards electronic – high and low value platforms
    • 186. Visibility and control through internet banking platforms
    • 187. Use of ERP/ other systems to integrate with JPM Access and use for reconciliation/ generation of payments
    • 188. FX exposures- most companies are using simple forward contracts to hedge their exposures
    • 189. Identify banks with electronic capabilities and a comprehensive product/ services
    B E S T   P R A C T I C E S   F O R   F O R E I G N   C O M P A N I E S   D O I N G   B U S I N E S S   I N   I N D I A
    16
  • 190. Bilateral funding options for Corporates
    Local currency
    • Working capital funding (i.e. 364 days or lesser tenors)
    • 191. Short term loans: Can be availed for various tenors up to 1 year (eg. 1 week, 3 months, 9 months etc)
    • 192. Overdrafts: Dynamic funding account to meet temporary cash flow mismatches
    • 193. INR term loans
    • 194. To meet capital expansion or project funding needs. Typically from 3-7 years
    External Commercial Borrowings (ECB)
    • Regulated form of foreign currency borrowing for Indian companies
    • 195. Refers to commercial loans in specified forms availed from non-resident lenders, including parent company
    • 196. Forms of ECB: Bank loans, buyers’ credit, suppliers’ credit and securitized instruments (e.g. floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares)
    • 197. Minimum average maturity of 3 years for amounts upto US$20mm and 5 years for amounts above US$20mm and up to US$500mm
    • 198. Subject to Reserve Bank of India (RBI) guidelines & restrictions on aspects such as end use, amount ($500mm per year) and tenor
    • 199. ECB proceeds can be used for
    • 200. Investment in certain sectors, overseas direct investment in Joint Ventures (JV)/ Wholly Owned Subsidiaries and is also permitted for first stage acquisition of shares in the disinvestment process and also in the mandatory second stage offer to the public
    • 201. Use of ECB proceeds not permitted for on-lending, investment in capital market or acquisition of a domestic company, working capital, general corporate purpose and repayment of existing Rupee loans. Also cannot be used for real estate sector and issue of guarantees / SBLCs
    • 202. Short Term Loans, Overdraft products and Term Funding
    • 203. Can be availed from local financial institutions
    B E S T   P R A C T I C E S   F O R   F O R E I G N   C O M P A N I E S   D O I N G   B U S I N E S S   I N   I N D I A
    • Buyer’s Credit (Post Import Financing) : Up to 364 days for raw materials and 3 years for capital imports
    • 204. Pre & Post Shipment Export Financing: Up to 364 days
    • 205. Negotiation & Discounting of Export LC Bills
    • 206. Letters of Credit / Bank Guarantees
    • 207. Receivables Purchase: Both with and without recourse to the seller
    • 208. Domestic Supply Chain Financing
    • 209. Structured trade finance
    Trade finance (both local & foreign currency)
    17
  • 210. India – Economic Profile
    1
    India – A Glass Half Full?
    11
    Opportunities for Foreign Companies in India
    12
    Best Practices for Foreign Companies doing Business in India
    15
    India’s Financial Framework
    18
    N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
    Basic Regulations in India
    20
    J.P.Morgan in India
    22
  • 211. India’s Financial Framework
    PLAYERS
    40 Foreign banks
    (295 Branches)
    SEBI
    30 Private Banks
    (~ 9,000 branches)
    Banks
    27 Public Sector
    Banks
    (> 58k branches)
    Ministry of Finance
    196 Regional Rural
    Banks
    (> 15k branches)
    I N D I A ’ S   F I N A N C I A L   F R A M E W O R K
    Financial
    institutions
    RBI
    Non-bank financial
    companies (> 7000)
    Source: rbi.org.in, www.banknetindia.com/finance/fi.htm
    18
  • 212. Financial landscape & banking sector
    Capital market and Foreign direct investment (FDI)
    Banking sector
    • Equity market indices: Sensex (Bombay Stock Exchange) and NIFTY (National Stock Exchange)
    • 213. 4,900+listed companies–Equity market cap of over US$1,200bn
    • 214. 1,698 FIIs & 4,800+sub-accounts
    • 215. Quantum of FDI permitted varies by sector; Sectors such as technology & power generation allow 100% FDI while real estate & agriculture prohibit FDI – Net FDI in 2009-10 was US$19.7bn (US$17.5bn in 08-09)
    • 216. Over 55,000 bank branches of total 70,000 branches support electronic clearing
    • 217. Base rate: Each bank declares a regulatory mandated base rate which is the lowest rate at which a bank can offer loans to any of its customers
    Types of clearing systems
    • Real Time Gross Settlement System (RTGS)
    • 218. High value, urgent electronic clearing (within 2 hours)
    • 219. National Electronic Funds Transfer (NEFT)
    • 220. Low value electronic clearing
    • 221. MICR
    • 222. Paper-based clearing
    • 223. Evolution of payments landscape
    • 224. Volumes still pre-dominantly led by paper based clearing (~80%) but moving rapidly towards electronic modes
    Debt markets
    • Fixed income–G-Sec, T-Bills, Corporate bonds, CPs
    • 225. Corporate bond markets under developed and low volumes. Appetite only for AA rated and above paper
    • 226. Average daily turnover: Corporate Debt: $250mm; G Secs: $4bn
    I N D I A ’ S   F I N A N C I A L   F R A M E W O R K
    80% of clearing by value has shifted to electronic systems
    Foreign exchange
    • INR freely convertible on current account
    • 227. Capital account convertibility not in the short term agenda
    • 228. US$ weakness and domestic fundamentals (relatively strong growth & improvement in trade deficit and strong US$ flows) support a stronger rupee
    Key regulatory bodies
    Reserve Bank of India (RBI)
    • Monetary Authority: Formulates, implements & monitors monetary policy
    • 229. Regulator/Supervisor: Prescribes parameters of banking operations
    • 230. Foreign Exchange Management, issuer of currency and banker to the Government and other banks
    FIPB and SIA
    • The Foreign Investment Promotion Board (FIPB) and Secretariat for Industrial Assistance (SIA) are responsible for overseeing and approving, as required, any foreign direct investment into India
    19
  • 231. India – Economic Profile
    1
    India – A Glass Half Full?
    11
    Opportunities for Foreign Companies in India
    12
    Best Practices for Foreign Companies doing Business in India
    15
    India’s Financial Framework
    18
    N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
    Basic Regulations in India
    20
    J.P.Morgan in India
    22
  • 232. Key regulatory guidelines applicable for capital flows, borrowings & investments
    Indian Rupee (INR) fully convertible on Current Account but not convertible on Capital Account which leads to several restrictions on repatriation
    of capital (equity investments, debt repayment & trapped cash). Available repatriation options are as summarized
    • Royalty payment
    • 233. Payment can be made under the automatic route
    • 234. Liberalized policy for payment of royalties under Foreign
    Technology Collaboration
    • Dividend payment
    • 235. Preferred option, as repatriation is easy. Tax applicability
    for dividend payment needs to be evaluated. Current rate of dividend
    distribution tax is 16.61% (15% plus surcharge on tax)
    • Investment in JV in India
    • 236. Investment by resident Indian entities could comprise of both
    resident and non-resident investment
    • Needs compliance with govt. regulations
    Repatriation of capital and trapped cash
    • Investment in JV/WOS (Joint venture/Wholly owned subsidiary)
    overseas
    • Cap of 400 per cent of the net worth of the Indian party
    • 237. Not really relevant from an MNC perspective
    • 238. Buyback of share capital
    • 239. Buyback cannot exceed 25% of company’s paid up capital
    • 240. Reduction of share capital
    • 241. Time consuming process, repatriation of proceeds requires RBI approval
    Foreign Direct Investment (FDI), offshore borrowings & trade finance
    • FDI in India is governed by the provisions of the Foreign Exchange Management Act
    • 242. FDI is approved by the Government of India (GoI) under 2 routes
    • 243. Automatic route
    • 244. No specific approval from the Foreign Investment Promotion Board (*“FIPB”) is required provided the foreign investment is within the prescribed limits specified for each sector. Liberal policy except in sectors affecting national security or local population
    • 245. 100% in infrastructure sectors, 74% in banking & telecom, 49% in airlines and 26% for insurance & print media. Prohibited sectors include real estate, retail, agriculture, atomic energy, gambling & betting and lottery business
    • 246. Government approval route
    • 247. Where specific FIPB approval is required, an application needs to be made to the FIPB
    • 248. FIPB approval takes about 4-6 weeks
    • 249. Foreign currency borrowings through the ECB (external commercial borrowings) route is a regulated form of foreign currency borrowing for Indian companies and refers to commercial loans in specified forms availed from non-resident lenders
    • 250. Foreign currency trade finance borrowings are also subject to tenor restrictions
    B A S I C   R E G U L A T I O N S   I N   I N D I A
    • Investments
    • 251. LCY investments: Several options from deposits to capital market instruments
    • 252. FCY surpluses cannot be invested onshore
    • 253. LCY deposits, money market funds, high yielding derivatives structure
    • 254. Foreign Currency Risk Management
    • 255. All instruments such as Forwards, Options and swaps are available for managing FX risk
    Treasury management
    • Bank Accounts - Only Onshore INR non interest bearing accounts allowed and Resident Indian Companies having export proceeds can open Onshore Foreign Currency Accounts
    • 256. Regulation of interest rates on deposits
    • 257. Restrictions on Current Accounts held with banks
    • 258. No interest on Current Accounts
    • 259. Minimum seven day tenor for sweeps/deposits
    • 260. Foreign Currency - INR not convertible on Capital Account but fully convertible on Current Account
    ¹ Explained in detail in later slide; LCY = Local currency, FCY = foreign currency
    20
  • 261. Other basic regulations
    Repatriation of funds
    Funds In/Out
    Other Funding Options
    • Bringing in equity –Allowed within FDI norms
    • 262. Off shore long term loan–Allowed with regulatory approval
    • 263. Advance against future receivables–Allowed from parent to the sub in India
    • 264. Local INR/FCY funding–backed by parent guarantee , SBLC, standalone–allowed
    • 265. Overdraft line, bill discounting, onshore trade loans–allowed on short term basis
    • 266. Dividends/royalty/capital gains can be repatriated subject to payment of local taxes
    • 267. Share buyback
    • 268. Investment in JV/wholly owned subsidiary
    • 269. Investment in rated paper of the parent of listed Indian subsidiary
    • 270. Equity: Based on Foreign Investment Promotion Board approval. Need to be converted to INR
    • 271. Debt or External Commercial Borrowings: Regulated
    • 272. Outward remittances regulated– Documentary evidence required to be submitted to banks
    Investment options
    B A S I C   R E G U L A T I O N S   I N   I N D I A
    • Term deposits with banks
    • 273. Money market mutual funds
    • 274. Onshore inter - company loans (Tax implications)
    • 275. Other investment options (CPs, T-bills)
    • 276. Bank Accounts–Only Onshore INR non interest bearing accounts allowed. Resident Indian Companies having export proceeds can open Onshore Foreign Currency Accounts
    • 277. Foreign Currency–INR not convertible on Capital Account but fully convertible on Current Account
    21
  • 278. India – Economic Profile
    1
    India – A Glass Half Full?
    11
    Opportunities for Foreign Companies in India
    12
    Best Practices for Foreign Companies doing Business in India
    15
    India’s Financial Framework
    18
    N A V I G A T I N G   Y O U R   W A Y   T O   B U S I N E S S   S U C C E S S   I N   I N D I A
    Basic Regulations in India
    20
    J.P.Morgan in India
    22
  • 279. Presence in India through multiple entities enables J.P. Morgan to be a one stop shop for any structured financing needs
    India Franchise
    JPMorgan Chase Bank, N.A., Mumbai Branch
    J.P. Morgan Securities India Private Limited
    J.P. Morgan India Private Limited
    J.P. Morgan Advisors India Private Limited
    Banking license (RBI)
    Authorized Dealer for FX
    Non-banking Finance Company registration (RBI)
    Merchant Banker registration (SEBI)
    Non-banking Finance Company registration (RBI)
    Underwriting Ability
    • Given our banking, NBFC and merchant banking licenses we possess the ability to underwrite any kind of funding transaction
    • 280. Backed by robust capital commitment we have one of the largest single borrower limit and group borrower limit in the industry
    Efficient execution
    • Internal processes fine tuned to the global best industry standards enable us to execute transactions in the most efficient manner
    Our value proposition
    J . P . M O R G A N   I N   I N D I A
    • J.P. Morgan is one of India’s premier investment banks having extensive client relationships with corporates, government and institutional investors
    Industry Relationships
    • Besides being one of the strongest global banks with a fortress balancesheet, we also have un-paralleled access to the offshore investor base
    Ability to access to offshore funds
    • J.P. Morgan in India has one of the most experienced and best in class advisory team, giving us the ability to provide structuring solutions to address any kind of funding need in the most efficient way
    Customized structuring solutions
    22
  • 281. Navigating Your Way to Business Success in India
    OSU Initiatives
    Chris Carey
    Director – Global Gateways
    110
  • 282. 111
    Global Gateways
    Agenda
    OSU Global Strategy
    OSU Strategy for India
    Challenges
    Questions and Answers
  • 283. 112
    Global Gateways
  • 284. Global Gateways
    Global Gateways
    To enhance the university’s teaching, research, and service.
    Facilitation for faculty research/teaching and international partnerships
    Portal for study abroad and international internships
    Alumni Affairs
    Academic programming and executive education/training for institutional partners both corporate and government
    International student recruitment and distribution of OSU information
    Partnerships with Ohio-based companies and International corporations looking to establish operations in Ohio
    113
  • 285. Locations
    Countries where OSU already has significant collaborations through Study Abroad Programs, Faculty Teaching and Research, University Partnerships, Alumni, International Students, Business Interests
    Implementation
    Gateways offices consist of leased space in two phases starting with China, India and Brazil
    114
    Global Gateways
    Global Gateways
  • 286. 115
    Global Gateways
    Global Gateways
  • 287. Phase II
    Istanbul
    Eastern Europe
    Sub-Saharan Africa
    London
    116
    Global Gateways
    Global Gateways
  • 288. Global Gateways
    Global Gateway - India
    Representative student contingent
    Great number of faculty connections
    Need in India for higher education
    Strong connections and partnerships with prestigious Indian Universities
    Growing world power and hub for innovation
    Support Ohio region’s development
    Underdeveloped education abroad potential
    117
  • 289. International Students – Country of Origin
    118
    Global Gateways
    India
    800+ Students
    >12% of Total
    <2% of Study Abroad
  • 290. Will locate in Mumbai business district with aim to establish in 2011
    Will serve greater central Ohio to promote region
    Will capitalize on OSU core strengths
    Engineering
    Food, Agriculture, and Environmental Sciences
    Health Sciences
    119
    Global Gateways
    Global Gateway - India
  • 291. 120
    Global Gateways
    Global Gateways: Challenges
  • 292. Global Gateways
    Global Gateways: Challenges
    Governmental Regulations
    Establishment of appropriate legal entity
    Foreign Universities Bill
    Initial funding and revenue generation
    Focus on core OSU strengths and activities
    Sustaining long-term faculty, student, alumni, and friends commitment and engagement
    121
  • 293. Questions
    122
    Global Gateways
  • 294. Ohio and India
    March 10, 2011
  • 295. Global Markets Division
  • 296. Ohio – India Office
    Opened in 2008 in New Delhi
    Satellite offices in Mumbai, Bangalore, Hyderabad and Chennai
    Managing Director - Mr. Prem Behl
  • 297. Ohio exports by country 2010
    Canada 17.2 billion
    Mexico 3.5 billion
    China 2.3 billion
    France 1.9 billion
    Brazil 1.3 billion
    Japan 1.3 billion
    UK 1.2 billion
    Germany 1.1 billion
    9. Australia 841 million
    10. South Korea 640 million
    11. Italy 610 million
    12. India 570 million
    13. Netherlands 542 million
    14. Belgium 521 million
    15. Singapore 461 million
    16. Hong Kong 407 million
  • 298. Ohio Exports to India 2010
    Total all commodities 570 million
    Industrial Machinery/Computers 252 million
    Electric Machinery 49 million
    Optic / Photo/ Medical Equip. 41 million
    Plastics 36 million
    Aircraft/Spacecraft 29 million
    Pearls, Precious Metals, Stones 24 million
    Misc. Chemical Products 17 million
    Articles of Iron and Steel 14 million
    Iron and Steel 13 million
    Tanning and Dye 8 million
  • 299. Ohio-India Relationship
    HISTORY
    Formal relationship began – 1987 – Gov. Celeste signs MOU with the PHD Chamber of Commerce in New Delhi
    Sister-cities – Cleveland & Bangalore and Columbus & Ahmedabad
    Between 1985 & 1996 – lays foundation for future work between 1996 & 2007
    • Gov. Celeste & Voinovich in total lead 6 trade missions to India
    • 300. Ohio hosts several in-bound missions from India
    Throughout the 22 year history
    • At least on an annual basis, interactions and visits to / from the Indian Ambassador & Consul General from New York occur.
    Former Governor Richard Celeste serves as U.S. Ambassador to India from 1997 to 2001 – the second Ohioan to serve in the post after William Saxbe who served in the mid-1970’s.
    Significant exchanges over the years between OSU & the Ohio Aerospace Initiative with many different organizations in India.
  • 301. Ohio-India Relationship
    RECENT PROJECTS
    Unofficial list of over 140 Ohio companies with operations or major known exports to India (PG, Babcock Wilcox / Eaton / Battelle, etc.)
    Have assisted well over 30 companies with major export projects to India since office’s inception
    Several high-profile, in-going investment prospects from India – many in the advanced and renewable energy sectors
    High profile investment win for Ohio in March 2008 from Tata Consultancy Services – North American Delivery Center in Milford, OH – 200,000+ sq. feet, plans to house over 1,000 locally hired SW engineers.
    Ohio Business Mission to India in May 2011.
  • 302. Indian Automotive Delegation to ColumbusApril 2010
  • 303. Ohio Companies with Offices in India
    The Timken Company, Canton
    --- Produces highly engineered anti-friction bearings; alloy steel; related products
    --- 17,000 employees
    --- Operations in 26 countries
    --- technology center on Bangalore, India
  • 304. Ohio Companies with Offices in India
    Proctor & Gamble, Cincinnati
    ---largest consumer packaged goods company in the world
    --- offices in 80+ countries
    --- 135,000 employees
    --- general office in Mumbai, India;
    also a manufacturing plant
  • 305. Contact Information
    Alex Kohls
    Global Trade Development Manager
    Global Markets Division
    Tel: 614-466-0262
    Alex.Kohls@development.ohio.gov