Breakfast Meeting on the ‘State of the Economy: An Industry Perspective’ 24th October 2019

American Chamber of Commerce in India
Apex Chamber of US Industry in India

Breakfast Meeting on the ‘State of the Economy: An Industry Perspective’ – 24th October 2019

AMCHAM’s Tamil Nadu Chapter organized a breakfast meeting on October 24th in Chennai with guest speaker Mr. A Viswanathan, President, Delphi TVS. The meeting commenced with a welcome by Mr. Rajan Aiyer, Chairman – Tamil Nadu Chapter, AMCHAM. Mr. Aiyer mentioned that there is something wrong with the economy and no one is coming up with the solutions to fix issues to set right matters. He mentioned that every sector of the economy feels the pinch and the ripple effect of government decisions and global affairs.

Mr. Viswanathan began his presentation by stating that today, when two or more people meet, the first thing discussed is no longer the weather but the economy. Everyone has an opinion of what’s happening and how it affects them. Mr. Viswanathan made a very insightful presentation starting with decoding the macro elements and said the growth engines for the economy included: investment, net exports, private consumption. He said that due to lack of confidence the consumer was holding back, leading to a rapid fall in rural consumption. The other factors influencing it included: erosion of demand generated by unaccounted income as the economy moves into an era of higher formalization; issues with accessing funding; uncertainty due to job losses and future business incomes; deceleration in growth of income levels; wealth effect; H1B visa tightening; falling interest rates and lower inflation trends.

The government has begun a journey of fiscal inclusion by formalizing the economy through: direct benefit transfer; tackling corruption; transaction reporting; tax intelligence strengthening; tax linkage and demonetization. Examining the other factors affecting the slowing of credit, Mr. Viswanathan opined that this is due to: the collapse of the non-banking finance sector; PSU banks not well geared to accelerate retail credit; introduction of accountability in banks; introduction of credit scoring system; and reduction in unorganized credit.

Explaining what is needed in the short term, Mr. Viswanathan said that, individuals should have more disposable income; rural incomes should rise; GST rates to be lowered selectively; government to increase infrastructure spending; re-introduce investment incentives; aggressively drive exports and provide confidence on policy stability. While long term course corrections should focus on privatization; position India for a China plus one strategy; promote tourism aggressively; encourage labour intensive exports; revamp education and organize overseas placement to countries such as middle Europe, Japan and SE Asia.

While speaking on the recovery path, Mr. Viswanathan stated that social sector reforms in employment generation; health care delivery; quality of education and social security are of great importance and no economy can grow without attention to this sector. He said that the government has taken many measures in this connection, some of which include: pumping liquidity into the lending mechanism; bank weddings; rollback of FII surcharge; DA increase for government employees; release of government payments; implement major infrastructure projects and rate cuts. He added that the long term fundamentals remain intact and is an advantage that India has.

Dwelling on what companies should do, Mr. Viswanathan said that businesses should remind ourselves on the long term fundamentals and stay positive; manage cash well; cut back on working capital; cut back on discretionary spend; improve internal efficiencies; be lean and agile; continue to focus on growth strategies; negotiate for better rates; talent acquisition and development and that MNC units in India should promote India as the next manufacturing hub. More importantly, he added that companies should not: cut back on product development; allow talent drain; let short term setbacks derail long term thinking; freeze long term capex plans; lose connect with customer and market and not pull out of the country.

In conclusion, he said that this slowdown is different from the earlier ones and that it is a mix of cyclical, structural and episodical factors. The impact he said is widespread with many key industries contracting, some decelerating and few still doing better. He went on to say that the economy can get back to over 6% growth in the next two quarters, but that is not enough for India. A range of short term and long term measures are needed to put the economy into a higher trajectory as the long term fundamentals are intact. Giving the last punch Mr. Viswanathan said that as companies, “We need to think simultaneously about surviving in the short term and thriving in the long term.” The meeting ended with a Q&A session and Mr. Rajan Aiyer thanking Mr. Viswanathan for this very detailed presentation on the state of the economy.

 Breakfast Meeting – ‘State of the Economy’ Chennai 24th Sept 2019

Membership

By joining AMCHAM India, you become part of an active and dynamic American business association with a membership base of more than 400 American companies in India. AMCHAM is an important voice for policy advocacy, a critical source for business intelligence, a vibrant platform for networking and expanding your business.

Industry Briefing Post U.S.- India ICT Dialogue 30th October 2019

American Chamber of Commerce in India
Apex Chamber of US Industry in India

Industry Briefing Post U.S.- India ICT Dialogue – 30th October 2019

A briefing with AMCHAM members post the U.S.- India ICT Dialogue (held on October 1st) was organized on October 30th at the U.S. Embassy in New Delhi with Mr. Rob Garverick, Honorary USG Co-Chair ICT and Cyber Security Committees, AMCHAM and Minister Counselor for Economic Affairs and Environment, Science and Technology, U.S. Embassy. Mr. Som Satsangi, Chairman – ICT Committee, AMCHAM and Mr. Deepak Maheshwari, Chairman – Cyber Security Committee, AMCHAM, were present.

 

Mr. Rob Garverick provided inputs from the G2G meeting between the U.S. and Indian government and mentioned thematic areas such as cyber security, implementation of the Cloud Act and MLATs. For ICT, issues such as data localization were discussed, the committee thereby suggested to reach out to the standing committee of Data Privacy and suggest to meet the industry representatives for their inputs. Other topics such as 5G, capacity building initiatives, H1B visas, implementation of AI and IoT in India, were discussed. Mr. Garverick also mentioned that the Indian government would promote local R&D to promote innovation and development in India, such as creation of domestic AI centres. Mr. Som Satsangi raised the point of IP in India and it was decided that the issue would be raised during the committee meeting and the U.S. government would take it up during their G2G meetings. Mr. Deepak Maheshwari spoke of India’s stand at the UNGGE and other international forums for cyber security.

 

Membership

By joining AMCHAM India, you become part of an active and dynamic American business association with a membership base of more than 400 American companies in India. AMCHAM is an important voice for policy advocacy, a critical source for business intelligence, a vibrant platform for networking and expanding your business.

Interaction with Ms. Ellen Lord, Under Secretary of Defense (Acquisition & Sustainment), U.S. Department of Defense 24th October 2019

American Chamber of Commerce in India
Apex Chamber of US Industry in India

Interaction with Ms. Ellen Lord, Under Secretary of Defense (Acquisition & Sustainment), U.S. Department of Defense – 24th October 2019

AMCHAM’s Defense Committee members met with Ms. Ellen Lord, Under Secretary Defense, U.S. Department of Defense for an interaction on October 24th prior to the 9th U.S.-India Defence Technologies and Trade Initiative (DTTI) group meeting. It was encouraging to hear the commitment from the U.S. to strengthen its partnership with India while furthering military-to-military relationships and cooperation and the level of excitement on the prospects of the bilateral defense trade between the two countries expected to reach USD 18 billion by the year end from zero in 2008. The Strategic Trade Authority-1 status granted by the U.S. government helps U.S. companies to export a greater range of dual-use and high end technology items to India while providing India with greater supply chain efficiency leading to advancing the shared vision for the Indo-Pacific with defense rightfully becoming the most important segment of the U.S.-India business partnership. Ms. Ranjana Khanna, Director General CEO, AMCHAM, opened up the session followed by comments from Mr. Phil Shaw, Chairman, AMCHAM and National Executive, Lockheed Martin India. The opening remarks were given by Mr. Michael Koch, Chairman – Defense Committee, AMCHAM and Vice President – India, Boeing Defense, Space and Security, followed by special remarks from USD Lord, while the summing up of the session and closing remarks were given by Mr. Nik Khanna, Co-Chairman – Defense Committee, AMCHAM and Managing Director – India, BAE Systems.

Membership

By joining AMCHAM India, you become part of an active and dynamic American business association with a membership base of more than 400 American companies in India. AMCHAM is an important voice for policy advocacy, a critical source for business intelligence, a vibrant platform for networking and expanding your business.

Karnataka Chapter Executive Committee Farewell for Mr. Naresh Shah and Mr. Paresh Shah 18th October 2019

American Chamber of Commerce in India
Apex Chamber of US Industry in India

Karnataka Chapter Executive Committee Farewell for Mr. Naresh Shah and Mr. Paresh Shah – 18th October 2019

AMCHAM’s Karnataka Chapter Executive Committee hosted a farewell dinner for Mr. Naresh Shah, Former President R&D at Hewlett Packard Enterprise and Mr. Paresh Shah, Former Director at Syniverse Technologies, as they stepped down from their posts as Executive Committee members of the Karnataka Chapter. The dinner was hosted by venue partner Conrad Bengaluru on Oct 18th.

 

Membership

By joining AMCHAM India, you become part of an active and dynamic American business association with a membership base of more than 400 American companies in India. AMCHAM is an important voice for policy advocacy, a critical source for business intelligence, a vibrant platform for networking and expanding your business.

Karnataka Chapter CEO Breakfast Series – New Business Models in Water as part of ‘Water Matters’ 18th October 2019

American Chamber of Commerce in India
Apex Chamber of US Industry in India

Karnataka Chapter CEO Breakfast Series – New Business Models in Water as part of ‘Water Matters’ – 18th October 2019

AMCHAM’ Karnataka Chapter hosted the 7th edition of the monthly CEO breakfast mornings on October 18th, in partnership with the U.S. Consulate Chennai as part of the series titled ‘Water Matters.’ Water Matters is a collaborative project of the U.S. Consulate General Chennai, Care Earth Trust, the Smithsonian Institute and the Science Gallery, Bengaluru. The project aims to utilize different mediums to educate, advocate and support South India in addressing water challenges.

As part of the project, a session was held exclusively for AMCHAM member companies in Bengaluru where eminent speakers, Dr. Sudhir Murthy CEO, NewHub and Mr. Mehul Patel, Executive Director Operations, Orange County Water District, addressed the need for large corporations to develop fundamentally new approaches for transactions in water within operations, engineering and finance, thus meeting water quality targets. The session focussed on more intelligent approaches to directly connect water management practice to prosperity and was a futuristic view presented to businesses operating in Bengaluru. The event was well attended with representation from companies like U.S. Technology Solutions, IBM, Accenture, Nike, GE and others.

 

Membership

By joining AMCHAM India, you become part of an active and dynamic American business association with a membership base of more than 400 American companies in India. AMCHAM is an important voice for policy advocacy, a critical source for business intelligence, a vibrant platform for networking and expanding your business.

Signature Lecture Series: Insights on Advance Pricing Agreement (APA) Programs in India and the U.S. with Mr. Steven Wrappe, National Technical Leader, Transfer Pricing, Grant Thornton and Ms. Fatima Hunaid, Partner – Tax, Grant Thornton India LLP 17th October 2019

American Chamber of Commerce in India
Apex Chamber of US Industry in India

Signature Lecture Series: Insights on Advance Pricing Agreement (APA) Programs in India and the U.S. with Mr. Steven Wrappe, National Technical Leader, Transfer Pricing, Grant Thornton and Ms. Fatima Hunaid, Partner – Tax, Grant Thornton India LLP – 17th October 2019

Multinational companies doing business in India have for years faced extraordinary levels of transfer pricing litigation and controversies regarding cross border transactions between related parties. India’s tax administration launched an APA program in 2012, which has till date concluded 297 APAs, including 32 bilateral APAs with taxpayers from multiple industries. AMCHAM’s Karnataka Chapter, in partnership with Grant Thornton, on October 17th, as part of AMCHAM’s Signature Lecture Series, hosted guest speakers from Grant Thornton, Mr. Steve Wrappe, National Transfer Pricing Technical Leader and Ms. Fatima Junaid, Partner – Tax, to talk to AMCHAM member companies about the Advanced Pricing Agreement and how it impacts American companies doing business in India. Attendees were from MOOG, Synopsys, CBRE, Bank of America, High Peaks Software and others.

Membership

By joining AMCHAM India, you become part of an active and dynamic American business association with a membership base of more than 400 American companies in India. AMCHAM is an important voice for policy advocacy, a critical source for business intelligence, a vibrant platform for networking and expanding your business.