A high-level U.S. Congressional delegation visiting Bangalore met up with the top management of U.S. companies at an exclusive breakfast meeting on 23rd February. This important group of U.S. lawmakers was led by the Chairman of the U.S. House Judiciary Committee, Representative Bob Goodlatte. The other members of Congress present at the meeting were: Rep. George Holding, Rep. Jason Smith, Rep. Dave Trott, Rep. Sheila Jackson Lee, Rep. Hank Johnson, Rep. David Cicilline, and Rep. Henry Cuellar.

The Chairman of AMCHAM’s Karnataka Chapter and Corporate VP & MD, Synopsys South Asia, Dr. Pradip Dutta, led the proceedings. He welcomed the visiting delegation and gave a brief on the Karnataka Chapter and the business climate in India. Chairman Goodlatte then addressed the participants and especially touched on the H1B issue explaining that the U.S. would like to strike deals with India that are in the interest of both the nations, but there was a need to reassess Indo-U.S. policies to create jobs for Americans.

Mr. Sanjay Koul, Chairman and Managing Director of Timken India, and a member of the Karnataka Chapter Executive Committee, AMCHAM, spoke on the manufacturing sector in India especially the prevalent labor laws. Ms. Debrati Sen, Managing Director, 3M India and 3M Sri Lanka, touched on IPR issues and Mr. Santhosh Kumar, Managing Director, Texas Instruments, spoke on how the IT sector had evolved in India, especially in Bangalore.

Among the eminent corporate heads at the meeting were Bala Bharadvaj, Managing Director, Boeing India Engineering & Technology Center; Naresh Shah, President, Hewlett Packard India Software Operation Pvt. Ltd.; Nyron Latif, COO, Goldman Sachs India; Atul Ujagar, Managing Director, Nike Sourcing; Anand Datta, President, Dover India; Yogen Karumbaya, Site Head – Bangalore, Thomson Reuters; and Mohan Sekhar, Senior Managing Director, Accenture Services.

The meeting closed with a vote of thanks from Mr. Iqbal Sait, Head of Asia Operations, Saggezza Inc. and Vice Chairman – Karnataka Chapter, AMCHAM.

A breakfast meeting on the ease of doing business in Tamil Nadu was held on 23rd February in Chennai. The guest speaker was Mr. Vikram Kapur IAS, Principal Secretary to Government, Industries Department.

Mr. Ramkumar, Chairman -Tamil Nadu Chapter, AMCHAM, welcomed members and set the tone for the meeting by stating that traditionally, Tamil Nadu has always been in the forefront of industrialization with a strong presence in the manufacturing of engineering and auto components, textiles, leather, sugar etc. Tamil Nadu is one state with a strong agricultural base and has transitioned from agriculture to manufacturing and now to IT and services.

Mr. Vikram Kapur began his address by stating that people in the audience are responsible for the India and Tamil Nadu growth story. He went on to say that during the post liberalization period since 1991, the private sector began to take over the lead in the industrial development of the country. States started taking the initiative in the new and competitive environment and Tamil Nadu was one of the earliest to seize the opportunity by playing a supportive role and announced its industrial policy in 1992 itself. This policy became the cornerstone and laid the foundation for the rapid growth of new industries in the state. This policy became the harbinger of growth that facilitated the electronics and automobile industry revolution in Tamil Nadu by attracting major projects from Industrial giants. Major projects triggered a multiplier effect by attracting a large number of auto and other ancillary industries.

Mr. Kapur went on to mention that the policy of the government has been to maximize the welfare of the people of Tamil Nadu by creating gainful employment opportunities by achieving higher and sustainable economic growth with emphasis on balanced regional development through greater private and public investment in manufacturing and infrastructure development. He said that the telecom story is evidence of how the private sector can change the face of the communication industry where over 80% of the population has a mobile connection. This is an example of the government giving space to the private sector and the private sector took the challenge. The government, in its avowed policy to make the ease of doing business, is working towards unshackling the fetters of the private sector.

Mr. Kapur said that Tamil Nadu set standards in many sectors such as a remarkable industrial growth story; public health which boasts of a fascinating story with universal coverage; pioneers in education with the ‘aided schools’ concept and the state has been the first to open up the education sector to private investment; social upliftment reforms and the noon meal scheme for school students which has been adopted by many states; free power to farmers bringing in growth in the agri sector despite the state being perennially drought prone.

On the governance front, Mr. Kapur said that the state is the most urbanized with over 50% of the population living in towns and cities. The state has a well-functioning bureaucracy supporting the political executive and a disciplined citizenry. The state has a growth of 9.0 to 9.25% which is 2% more than the national average, with the state GDP being second only to Maharashtra. On the industrial output the state is the 3rd largest with the largest number of factories, largest number of SME’s and a 20 million workforce. He added that on the export front the state was the 3rd largest and for the period 2011 – 2016 the state received the 3rd highest FDI inflow.

The political and social culture in the state is reflected in the faith that business has reposed in Tamil Nadu which boasts of the finest infrastructure and having an extensive road network; rail network; 4 major ports and many minor ports and 4 international airports. The state has overcome its power shortages and today is self-sufficient in power with no major load shedding across the state.

The advantages of the state is in its urbanization which is a critical engine for growth; large pool of trained manpower with one million graduates yearly; the engineering colleges in the state produce over 2.5 lakh engineers every year and an equal number of engineering diploma holders and tradesmen from the Industrial training Institutes. ‘India Today’ ranked Tamil Nadu as the number 1 state in terms of showing the most improvement in its socio-economic infrastructure.

Mr. Kapur attributed to the poor showing in the EODB rankings from 12th in 2015 to 18th place in 2016 due to the increase in the number of parameters from 240 to 600. He said that the ranking matrix needs a serious re-look.

On the e-governance front, Mr. Kapur stated that the public and businesses interface with 10 or 12 government departments, all of them are in a fairly advanced state of computerization.

To make life easier for businesses, some of the outcomes are the ‘single window clearance’ through the TN state Guidance Bureau which grants an in-principle approval after 30 days of submitting the complete proposal. Some of the challenges are in the CRZ clearance which is extremely strict; TNPCB which has strict norms and an online filing system; land clearances which many times get held up in litigation. The TN government, through its agencies like SIPCOT and TIDCO, have a large readily available land bank to cater to industry.

Mr. Kapur said that the NCAER gives the state a better ranking when compared to the DIPP rating which does not factor in industry feedback.

To improve the infrastructure the state has embarked on a plan to invest in logistics support by developing roads, rail networks, ports, power generation and distribution as outlined in the Vision Document 2023.

Mr. Kapur invited American businesses to invest in Tamil Nadu by stating that there are numerous opportunities for work in ‘smart cities,’ the aeronautical hub and manufacturing. In the recently held Global Investor Meet 2015, a total of 98 MOU’s were signed with an investment of 242 lakh crore rupees over a period of 3 to 7 years. Of this, 62 projects have been implemented and 7 have already started commercial production.

He concluded by thanking the American companies for kick starting the industrial development in the state making a reference to Ford Motor Company which set up a manufacturing plant in Marai Malai Nagar near Chennai.

This presentation was followed by an interactive session, after which, the meeting concluded.

AMCHAM Hyderabad’s Annual Day was held on 23rd February, 2017. The Consul General of the US Consulate Hyderabad was the chief guest for the event. Dr. Kiranmai Pendyala, Chairperson – Hyderabad Chapter, AMCHAM, thanked the sponsors in her opening remarks and gave a brief on the activities of the Hyderabad Chapter. She mentioned the flagship event of the Hyderabad Chapter, AMCHAM Sports, which was only conducted by the Hyderabad Chapter. She spoke about the strong relationship of AMCHAM India with the U.S. Consulate and how AMCHAM has played a role in strengthening U.S. – India business ties over the last 25 years. Dr. Pendyala emphasized that if you are not willing to risk the usual, you will have to settle for the ordinary. American companies in India have created the relevant relationships and success they have today through the tenets of innovation and inclusive growth. As Hyderabad continues to play a key role in the growth of U.S. business in India, she mentioned that the best way to get started is to quit talking and begin doing.

Ms. Katherine Hadda, Consul General of the U.S. Consulate, Hyderabad, mentioned that AMCHAM is an incredible organization, active in everything from social responsibility initiatives to sports and cultural events — a great partner to the consulate and great friends. CG Hadda said that these events were great examples of the strong community of leadership AMCHAM demonstrates in Hyderabad. She spoke about UTC and their involvement with the Hyderabad Metro. To learn more about all the things happening in Hyderabad, CG Hadda invited the audience to follow her on Twitter. She mentioned that the U.S. and India have agreed that the GES will be held somewhere in India this year. It would be a 3-day interaction focused on entrepreneurship with economic growth, social inclusion and securing communities. CG Hadda emphasized that it is the unique people to people ties between the citizens of U.S. and India which creates the foundations of the close relationship and that is true of the community in Hyderabad also, where many have family ties to the U.S. or have studied there.

Mr. B.V. Mohan Reddy, Chairman of Cyient, a Padmashri Awardee, was felicitated on this occasion. A total of 261 participants received awards as winners and runners up for AMCHAM Sports, which saw a record 1,400 participants representing 29 American companies. The event closed with a vote of thanks by Mr. Shashidhar Reddy, Vice Chairman – Hyderabad Chapter, AMCHAM.

The U.S. Trade Development Agency (USTDA) plans to launch their Global Procurement Initiative (GPI) in India shortly. As a precursor to this launch, AMCHAM India, in partnership with the Consulate General of the United States, Mumbai, organized a presentation on “Global Procurement Initiative: Understanding Best Value” on Wednesday, 22nd February 2017 in Mumbai.

The morning began with a welcome address and an introductory note by Mr. Chris Grossman, Chief Economic & Political Affairs, U.S. Consulate, Mumbai. Ms. Mehnaz Ansari, Country Representative – South Asia, USTDA, made an insightful presentation on USTDA’s presence, projects, priority sectors, partnerships (government and industry) and initiatives in India.

USTDA is engaged actively on projects in infrastructure, energy, transportation and IT as well as providing in-depth training on conducting life-cycle cost analyses, pilot projects and feasibility studies. USTDA also partners with World Bank and collaborates with major multilateral development banks in the planning and execution of GPI. The agency’s goal is to provide each GPI partner country with the access, opportunity and support it needs to structure sound infrastructure tenders that can foster sustainable economic growth.

Ms. Lauren Zeigler, Manager Global Procurement Initiative, USTDA, shared insight information on the Global Procurement Initiative that is proposed to be lunched in India shortly. Through the presentation, she highlighted:

Key issues: Best Value determination, life cycle cost analysis, objective evaluation and professionalization
Overarching goals of the GPI: sustainability and improved outcome
The GPI model: Study tours to the U.S., training sessions and advisory support
Partner Countries: Mexico, Colombia, Romania, Vietnam, Philippines, Ethiopia, Botswana, Panama
Partnership criteria: USTDA seeks to partner with countries that are:
Committed to integrating best value determination in tenders
Open to fair and transparent international competition
Dedicated to the long term professionalization of their procurement workforce
GPI in India: Potential partner states – Maharashtra, Andhra Pradesh, Rajasthan, Gujarat, West Bengal

An interactive Q&A session answered several queries on challenges and opportunities in the Indian procurement scenario. The roundtable event concluded with closing remarks and vote of thanks by Ms. Surabhi Wahal, Regional Director – Western Region, AMCHAM.

On 15th February, AmCham members met with Mr. R V Deshpande, Minister of Commerce & Industries, Mr. Gaurav Gupta, IAS, Commissioner for Industrial Development, GoK and Mr. D.V. Prasad, I.A.S, Additional Chief Secretary to Karnataka Govt. for Commerce & Industry, on the sidelines of Aero India 2017 at the Karnataka Udyoga Mitra Hall at Yelahanka air show grounds.

The Government of Karnataka officials highlighted the government’s vision to achieve inclusive, equitable and sustainable growth and it’s ability to host a number of reforms and initiatives to speed up industry-led growth in the state. The state’s industrial policy for 2014-19 aims for an annual growth rate of 12%. Members also requested for separate one-on-one engagements with the Additional CS and Industries Commissioner to discuss the issues at length, which AmCham helped to coordinate.

AmCham, in partnership with knowledge partner EY, organized a breakfast session on ‘The Dynamics of the Global Tax Environment’ on Wednesday, 15th February 2017 in Mumbai. The world tax scenario is witnessing a dramatic change, with countries striving for tax transparency, exchange of information, treaties being revisited and technology taking a lead. The session was held with the objective of providing tax professionals with a global perspective to revisit their strategies and tax planning functions.

Ms. Surabhi Wahal, Regional Director – Western Region, AmCham, began with opening remarks and introduced the speakers for the session. Mr. Sudhir Kapadia, National Tax Leader, EY India, shared an introductory note ushering in the topic. Mr. Jay Nibbe, Global Vice Chair- Tax, EY, shared valuable insights on the dynamics of the global tax environment with a detailed focus on the Trump/Republican tax priorities for 2017.

This was followed by an engaging Q&A session. The session concluded with a vote of thanks by Mr. Milind Pradhan, Director – Corporate Finance and Taxation, Johnson & Johnson Medical India.