In this white paper, we talk about the century-old trade and cultural relationships between United Kingdom and Telangana which makes these 2 regions natural allies for fostering trade. United kingdom’s knowledge centric, research industries specifically in the pharmaceutical sector, should aim to capitalize the impetus provided by the Telangana state to promote life science industries, “Pharma city” and “Pharma University”.
White Paper - Business Opportunities Between UK & Telangana
1. GLO links Consulting - ‘Catalyst of Renaissance’
501.01- 070915
United Kingdom
Europe is finally accelerating, but it faces
continuing uncertainty about financial stability
emanating from troubles in Greece; UK is one of
the most flexible economies in Europe, and
structural reforms have strengthened work
incentives and supported an already positive
business friendly environment.
The Survey, presented by OECD Secretary-General
Angel Gurría and UK Chancellor George Osborne, says
that annual growth in the UK rose 2.6% in 2014,
the fastest among G7 countries, and is projected to
be at the same rate this year. The Office for National
Statistics said GDP rose 0.4% in the first quarter of 2015
from the previous three months. The recovery has
been underpinned by highly accommodative
monetary policy and measures to support lending
to revive the housing market. As per the OECD
report, with a vibrant and inclusive labour market,
the unemployment rate has fallen rapidly to 5.7%
and employment rate (at 73.4 per cent), is at
record levels. Sustainability of economic expansion,
further progress in living standards, rests on
stimulating productivity growth and furthering
structural reforms.
Access to skills and knowledge, a robust legal
system for the protection of Intellectual Property
(IP), and world-class manufacturing capability have
contributed to making the UK a centre for
discovery and development of new products. UK’s
future economic prosperity depends on fostering
strong, vigorous and well-supported knowledge-
intensive industries.
In the recent past, the UK has been a highly
successful centre in the area of large molecules and
biological innovation, by most measures, the
pharmaceutical sector is Britain’s most successful
research-based industry.
INDIA
India's economy is now one of the fastest
expanding economies in the world, with a rapidly
expanding consumer class. India’s growth is likely
to improve from 7.2% in 2014 to 7.5% both in 2015
and 2016 (up 1.2% and 1% from the January WEO
forecast), overtaking China’s growth — for the first
time since 1999. China’s growth is projected to slip
from 7.4% in 2014 to 6.8% this year and further
down to 6.3% next year.
India currently has over 123 million internet users, over
600 million people use mobile phones, 15 million
people do online transactions and over 51 million
people log on to Facebook. The growing, Indian
middle class counts 300 million people, comparable
in size to the entire European Union’s market. India
has the world's second largest labour force, with
approximately 520 million people. It is a huge pool
of skilled manpower and semiskilled and unskilled
labour available at a comparatively moderate cost.
Important reforms have been announced by the
Union Government, to improve the ease of doing
business, and due importance has been given to
the ‘Skill India’ program to ensure the success of
the ‘Make in India’ campaign.
Overall, the events in the last few months have set
the momentum for reforms and drummed up
enthusiasm in the market, which can put India on a
high, sustainable growth trajectory.
2. GLO links Consulting - ‘Catalyst of Renaissance’
501.01- 070915
Telangana
On the 2nd of June
2014, Telangana, the
29th state of India was
created; it is situated in
the central stretch of
the eastern seaboard
of the Indian Peninsula.
The State comprises of
10 districts covering an
area of 1,14,840 sq. km
(44,340 sq. mi). The
largest district is
Mahabubnagar whereas Hyderabad is the smallest,
with a total population of 3,52,86,757.
Telangana’s economy is mainly driven by
agriculture. Two important rivers of India, the
Godavari and Krishna, flow through the state,
providing irrigation. Farmers in Telangana mainly
depend on rain-fed water sources for irrigation.
Rice is the major food crop and staple food of the
state.
The Telangana region has rich natural resources.
20% of the coal deposits in the country are in
Telangana region. The Singareni Collieries Company
excavates coal for industrial purposes and for
thermal power stations. There are limestone
deposits in the region, which cater to cement
factories. Telangana has other resources such as
bauxite and mica. Several major manufacturing and
services industries are in operation mainly around
Hyderabad. Automobiles and auto components
industry, spices, mines and minerals, textiles and
apparels, pharmaceutical, horticulture, poultry
farming are the main industries in Telangana.
Telangana is one of the Top IT/ ITES exporting
states of India.
Economy
State finances are its key strength. Chief Minister
Chandrasekhar Rao. K (popularly called KCR) of
Telangana Rashtra Samithi (TRS) led state
government, presented a Rs 531 crore (~$85
Million) surplus budget for fiscal year 2015-16.
Unlike many other states, money is not a constraint
in doling out subsidies and creating new jobs.
Government announced the creation of as many as
25,000 new government jobs and building 50,000
two-bedroom houses and free education up to
post graduation for the poor, among other welfare
measures.
Ancient Trade Relationship
United Kingdom has had strong trade relations
with Telangana region for more than a century.
Secunderabad’s Alexandra Road and Oxford Street
housed the most fashionable European shops in
the 19th
century. They included Mapin and Webb
(cutlery and crockery), Richard & Co. (goldsmith),
Spencer (aerated drinks), Badam Pyle
(confectioners), John Pile (general stores), Bright &
Co. (chemists).
John Burton was the most fashionable draper and
tailor. The second son of Nizam VII, Prince
Muazzam Jah had his
sherwanis stitched at
Burton’s. A.S. Abdul
Khader had a
department store.
H.M. Hussain had a
textile store. J.C. Pinto
ran a bookshop.
Percy’s was the main
western hotel in
Secunderabad. At its
rear was a popular dance hall. Close to it was the
Plaza Cinema with an attached bar.
3. GLO links Consulting - ‘Catalyst of Renaissance’
501.01- 070915
TELANGANA’s Unique Proposition
for Business
Investment Support and Promotion by the
Government
To create a favourable business environment for
businesses in Telangana, enable growth and
support the development of businesses, the state
government in November 2014, announced its
industrial policy and specific initiatives for 2014-15
which include
• To develop, “Pharma City” at Mucherla village in
Rangareddy district of the size of about 11,000
acres, comprising processing and non-processing
areas and common effluent treatment plants.
• In addition, Government has promised to build
pharma research and education facilities, near
Hyderabad to attract more investment.
• Development of the Hyderabad-Warangal
Industrial Corridor.
• Development of Warangal as the textile hub of
Telangana.
• Food Processing and Seed Production Initiatives.
• Mini-industrial townships along with industrial
parks.
• Creation of a Venture Capital/Angel Fund.
• Inter-state VAT rationalization on industrial
inputs and outputs.
• Review and Reform of all age old industry sector
regulations, including labour laws.
In addition, the State Government also plans to
promote two mega multi-crore projects –
• Telangana Water Grid which provides tap water to
every home.
• Mission Kakatiya, the revival of thousand year old
water tanks in the State.
ENVIRONMENT
Determined to create an ecosystem, the state
government has launched an industrial clearance
system, Telangana State Industrial Project Approval
and Self-certification System (TS-iPASS), which
focuses on effective single window mechanism,
time bound approvals for setting up projects in the
state. The government is promising investors all
permissions (for land, water, electricity etc) in 15
days, and corruption-free procedures. Penal action
has been proposed on the concerned officers, who
delay the applications. State Government has also
earmarked 1.60 lakh acres of land for
establishment of 150 industrial centers and 28
zones.
Support
Telangana state government has proposed
incentives to entrepreneurs in the following areas
under its T-IDEA (Telangana State Industrial
Development and Entrepreneur Advancement):
• Stamp duty reimbursement
• Land cost rebate
• Land conversion cost
• Power cost reimbursement
• Investment subsidy
• VAT reimbursement
• Interest subsidy
• Seed capital for 1st generation entrepreneur
• Training and skill development cost reimbursement
• Quality/patent support
• Reimbursement of infrastructure development costs
Union Government to promote industrialization and
economic growth, in Telangana state, as per
Section 94 (1) of the Andhra Pradesh
Reorganization Act 2014, has offered tax
incentives:
• 100% central excise benefit for 5 (or more) years .
• 100% income tax benefit for 5 years; 30% for the
next 5 years.
4. GLO links Consulting - ‘Catalyst of Renaissance’
501.01- 070915
Hyderabad
Hyderabad, the fourth
most populous city
and sixth most
populous urban
agglomeration in
India, houses 300
worldwide IT/ITeS
players. The Hitech
City-Gachibowli-Manikonda space antecedently
boasts of the Whos-who who of the worldwide IT
arena with players like Google, Microsoft,
Facebook, Infosys, Wipro, HSBC, Dell and Amazon.
Hyderabad was historically known as a pearl and
diamond trading centre, and it continues to be
known as the City of Pearls. Many of the world’s
leading retailers are present in Hyderabad.
Recent investment
ITC Limited engaged in fast moving consumer
goods (FMCG), hotels, paperboards and specialty
papers, packaging, agri-business, and information
technology has announced that it will invest a
whopping Rs 8,000 crore (~USD 1 billion) in
Telangana. Apart from doubling the existing
capacity of its paperboards manufacturing unit in
Bhadrachalam, from 500,000 tonnes to 1 million
tonnes, ITC has firmed up plans to set up a "world
class food processing unit" in Medak. Also on the
agenda of ITC, is a "green hotel" in Hyderabad at an
investment of Rs 1,000 crore. In addition, some
companies like Anjani Portland Cement, MSN Life
Sciences, Sneha Farms, Aizant Drug Research
Solutions, Pioneer Torsteel Mills, Solithro, Covalent
Laboratories, EPR Centre for Cancer Research and
Bio-Informatics, Bhavna Solar, Premier
Photovoltaic, Usha Ventures, Value Labs, Dodla
Dairy, HIL (Plastics), Duraline India (Telecom) and
Nuzen Industries, have got clearances for their
projects.,.
In Hyderabad, Google is setting up its biggest
campus outside the US and Amazon has decided to
establish its largest procurement center. Uber has
also proposed, to invest $50 Million, to set up its
biggest global office.
Core Sectors
Telangana State Government has identified certain
core sectors to promote which include:
• Life Sciences
• IT hardware including bio-medical devices,
electronics, and cellular communication
• Precision engineering including aviation and
aerospace
• Food processing
• Automobiles, tractors and farm equipment
• Textiles and apparels
• Plastics and polymers
• Fast-moving consumer goods and domestic
appliances
• Engineering and capital goods
• Gems and jewelry
• Waste management and green technologies
• Renewable energy and solar parks
• Mine-based and wood-based industries
• Transportation, logistic hub, and inland ports.
CONCLUSION
Given the outlook, century-old trade and cultural relationships, United Kingdom and Telangana are natural
allies for fostering trade. United kingdom’s knowledge centric, research industries specifically in the
pharmaceutical sector, should aim to capitalize the impetus provided by the Telangana state to promote life
science industries, “Pharma city” and “Pharma University”. P.R.GLOlinks experience, accumulated
knowledge, comprehensive assessment of marketplace realities, coupled with our program management
skills, can help you to achieve early success.
5. ‘Catalyst of Renaissance’
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BSICC
British South India Council of Commerce (BSICC) is an independent, nonpartisan, volunteer run organisation
which promotes trade and investment between UK and India, specifically South India. BSICC is an umbrella
body of South Indian communities in UK and includes representatives from UK, Andhra Pradesh, Karnataka,
Kerala, Pondicherry, Telangana and Tamil Nadu.
TeNF
Telangana NRI Forum (TeNF) is a not for profit cultural and social organization, which provides a platform to
people of Telangana origin in UK and rest of Europe. TeNF is committed to work for the development of
Telangana and is now putting efforts to showcase Telangana as an investment hub to the world.
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