US-India Business Council celebrates 33rd anniversary
India is, and will continue to be, a premier destination for investment
Ajay Ghosh
Amid global uncertainties, India has continued to be a major investment destination compared to other emerging economies, with most business groups and leaders rating future economic growth in India as highly sustainable and profitable. Outward bound Indian investment to the US and elsewhere is expected to top $25 billion in 2008. Trade and commerce form a crucial component in the rapidly transforming and multi-faceted relations between India and US. From a modest $ 14.4 billion in 2000, bilateral trade in merchandise goods has increased to $ 41.6 billion in 2007, representing an impressive three-fold growth in a span of 7 years.

During a recent survey by Ernst and Young among the MNCs in the United States, a large section of respondents answered in the affirmative regarding their plans to invest in India in order to establish or expand their operations over the next five years. "India is, and will continue to be, a premier destination for investment," is the assessment of most of these respondents, it said. However, many also expressed the need for several measures to be taken become more investor-friendly.

Echoing this sense of optimism, the US-India Business Council's (USIBC) 33rd anniversary celebrations held in Washington, D.C. on June 12, 2008, demonstrated the depth of commitment of USIBC member Companies to India's continued economic growth. The event was a way of taking stock of its 33-year history and deliberating on the 'way forward.'

The celebrations were presided over by the new USIBC Chairman, Indra K. Nooyi of PepsiCo., who while describing India as a fantastic market for major companies, said, doing business in the country is relatively easy. India-born Nooyi said that not only Pepsico likes to do business in India but also chief executives of other big corporations with whom she has spoken to, feel the same way. "India has been a fantastic market. Doing business with India has been relatively easy," Nooyi said at a press interaction during the anniversary celebrations of the USIBC in Washington DC.

Pointing out that major corporations have been growing at a rate of 20 to 30 per cent, she added that doing business is relative. " It's all relative, because it's relative to other developing and emerging markets, who all have their issues," Nooyi noted. According to her, India is one of the most important markets for Pepsico and the firm likes to do business in the country.

"We actually like doing business in India and all the other CEOs I talk to, feel exactly the same way... India is one of our most important markets. We have discussions going on a bilateral investment trade agreement," the Chairperson of USIBC said. Queried on her biggest worry about India, Nooyi asserted that soaring oil prices is something the country has to cope with and the same is worrying everyone today. Further, she said that rising oil prices is not just an issue for India but across the world. "I think worldwide one of the biggest issues we are all confronting is where is the price of oil going to go and how do you cope with not just escalating but just exploding energy costs."

Commerce and Industry Minister Kamal Nath attended the Washington event with TV show host Charlie Rose presenting a session with him on theme of "India in the 21st Century - A Partner in Free-market Democracy". Commerce and Industry Minister Kamal Nath has held high level discussions with US officials on how to take forward the Doha round of world trade talks stalled over differences on market opening in agriculture. The minister concluded the show with remarks on "Aspirations for the India-US Partnership". Gutierrez and US Schwab were among the other keynote speakers at the event.

Former US Secretary of State Henry Kissinger, Chip Kaye, co-president of Warburg Pincus, Greg Fleming, president & COO of Merrill Lynch, Charles Rangel, New York Congressman, Vijay Mallya, CEO of UB Group, and senior management from USIBC member companies were among others who attended the event.

Bharti group Chairman Sunil Mittal was conferred with the 'Global Vision' award by US-India Business Council. The award is a recognition of Mittal's "revolutionary foresight in bringing telecom connectivity to benefit the lives of the common man ... and for his efforts to organise India's agricultural sector ... bringing efficiencies to India's farm-to-market supply chain," US-India Business Council (USIBC) said. On receiving this award, Mittal said, "It is true honor for me and a tribute to India's vibrant business environment that has provided opportunities to entrepreneurs like me."

The Chairman and CEO of American Express, Kenneth Chenault, was honored for the "global vision" exhibited by this dynamic MNC - citing Amex's many contributions to society, as well as its seamless integration into the Indian economy. Tabla maestro Zakir Hussain is receiving USIBC's 33rd anniversary honour for his contribution to India's artistic traditions and the strong bonds they promote between the cultures of the two countries. Previous recipients of the award, include Tata group Chairman Ratan Tata, billionaire Mukesh Ambani and Jim McNerney, Chairman and CEO of Boeing.

"As countries around the world struggle with commodity price rise and food shortages, USIBC's Global Partnership Summit will grapple with the key linkages that need to be strengthened to create a better quality of life not only for the people of India and the United States, but for all of humanity," said Ron Somers, USIBC President. "India and the United States are fast-becoming equal partners - as beacons of freedom and democracy, as thought leaders across all sectors, and as powerful and dynamic economies. "USIBC's Global Partnership Summit will explore the ways and means to strengthen these bonds - bonds so essential to providing the vision and leadership that are now required in this 21st century," he said.

Earlier last month, "Investing in America: The Indian Story" an initiative by the US-India Business Council (USIBC) was held at the Hotel Taj Boston with a keynote address by India's Minister of Science and Technology Kapil Sibal. The anticipated $25 billion investment in the US and elsewhere in 2008, is expected to bring a new dimension to relations between the world's largest democracies," it added.

The "Investing in America" initiative showcased the positive contributions made by Indian companies to the US economy, from the boosting of American jobs, to best management practices exchanges between US and Indian managers, to innovative new business strategies undertaken by Indian companies operating in America. "USIBC is proud to showcase the 'Investing in America' initiative. It is important that we raise awareness about the themes of increasing economic development in this country by creating a conducive environment in the US for Indian investment," said USIBC president Ron Somers.

"We welcome good corporate citizens who want to participate in building prosperity for all." Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and Industry (Ficci), will also participate in the initiative. "We are proud of the increasingly important role being played by Indian companies in building prosperity in the United States. I look forward to working with our American colleagues and increasing ties between these great democracies," Mitra said.

David Good, former US Consul General in Mumbai, and now chief representative for the Indian firm Tata and Sons, presented a case study concerning Tata investments in America. These investments range from hotels in Boston to tea companies in California that employ Americans. Other companies that were highlighted during the celebrations were Ranbaxy Laboratories, HCL Technologies, Mahindra USA, Satyam Computer Systems, Essar Group, Wockhardt USA, Thermax, ITC Group, Bharat Forge America, Kotak Mahindra and Jet Airways.

The U.S.-India Business Council is the premier business advocacy organization representing America's top companies investing in India, joined by global Indian companies, promoting economic reforms with an aim to deepen trade and strengthen commercial ties.USIBC was formed in 1975 at the request of the government of the United States and India to involve the private sectors of both countries to enhance investment flows between the United States and India, with the primary mission of serving as a direct link between business and government leaders, resulting in increased trade and investment.

USIBC is partnered with the premier industry & trade associations in India, including the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), the American Chamber of Commerce in India (AmCham India), National Association of Software and Service Companies (NASSCOM), The Indus Entrepreneurs (TiE), and the Indo-American Chamber of Commerce (IACC). These relationships provide USIBC-member companies with invaluable expertise and contacts throughout the U.S. and India.

It organizes major policy and business development conferences in the U.S. and India. USIBC facilitates for its members key meetings with Indian Industry and Government of India officials to provide business leaders with direct access to top Indian decision-makers. And offers a daily information service that includes sector-specific updates, and provides a monthly newsletter and calendar of events to keep members apprised of important activities.

The current Chairman of USIBC, Indra K. Nooyi is supported by a prestigious Board of Directors, whose combined experience investing in India is significant. To serve its members effectively, USIBC has established presence in New York through the Manhattan-India Investment Roundtable, as well as a West Coast presence in California and in New Delhi.

USIBC formulates an annual work plan that targets specific issues important to its member-companies, compiled from input derived from the 12 Executive Committees and Working Groups that meet regularly to assess progress on-the-ground and to devise strategies and prepare representations to advance sector-specific reforms in India. In addition, USIBC's Executive Committees organize industry missions to India to present to counterparts.

ICICI Bank celebrates New York Branch launch with Closing Bell at New York Stock Exchange
Ajay Ghosh
ICICI Bank Limited, India's s second largest bank by assets and largest private sector bank, inaugurated its New York branch in midtown Manhattan, NY on Friday, February 29. It will manage salary accounts of US employees of large multinational companies from the new office branch from Monday, March 03, 2008. K.V. Kamath, Managing Director and CEO, ICICI Bank Limited, and Sonjoy Chatterjee, Executive Director of the bank, announced this during a press conference at the New York Stocks Exchange (NYSE) after ringing the Closing Bell at the NYSE, where the bank has been listed as NYSE: IBN.

K V Kamath said, India's growth momentum and its trade relationship with US has reached an inflexion point. ICICI Bank's entry into the US market provides it with a great platform to service the various opportunities arising from this paradigm shift. The New York branch will offer a suite of banking services including working capital, acquisition finance, trade service and treasury solutions to corporate and savings products to qualified individuals, he said. .

When asked, why it took so long to come to the US, Kamath said, "Certain regulations in India to prevent money laundering had delayed our entry in the US. ICICI Bank won approval last October from the US Federal Reserve to convert its representative office in New York to a full-fledged branch. Under the licence granted by regulators here, the bank will initially provide services to corporate customers, but will get into general retail banking three months down the line. "New York has the deepest pool of capital, and by operating here, we will grow our business," Kamath said. The bank will service the various opportunities arising out of India's growth momentum and its burgeoning trade with the US, he added.

The branch is well positioned to channel investment activities of Indian companies in the US and vice-versa of US companies in India. The bank is simultaneously planning to leverage its presence in New York to significantly ramp up its India based NRI services to Non-Resident Indians (NRIs) residing in the U.S, Kamath added further. .

Sonjoy Chatterjee, who is responsible for Corporate & International Banking, at ICICI Bank Limited said, The New York branch completes our strategy to be present across all major financial centres. Our initial focus will be on corporate cross border opportunities and the local banking needs of Indians coming to work in the US. This is an exciting period for the Bank as it pursues its aspiration to be a truly global bank.

He said the bank was authorized to serve the retail needs of Indians in the US on H1B work visas, numbering about 100,000 currently. "We will, for example, manage salary accounts of US employees of large Indian companies like Infosys and Tata Consultancy Services." On plans to open more branches in the US, he said: "As business evolves, we will evaluate what needs to be done." Chatterjee said, would be on corporate cross border opportunities. The branch is well positioned to channel investment activities of Indian companies in the US and vice-versa of US companies in India.

ICICI Bank Limited, India's largest private sector bank and the second largest bank in the country, has consolidated total assets of $115 billion as of December 31, 2007 and a market capitalization in excess of $30 billion. ICICI Bank's subsidiaries include India's leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms.

The Mumbai-based ICICI Bank has consolidated total assets of about $115 billion (Rs 4,589.5 billion) as of Dec 31, 2007. With over 950 branches in India, it is the country's second largest bank after State Bank of India (SBI). ICICI, which opened a branch last week in Frankfurt, Germany, now has presence in 19 countries, including three wholly owned subsidiaries in Britain, Russia and Canada. It also has an offshore banking unit in Singapore, an advisory branch in Dubai, branches in Bahrain, Sri Lanka, Hong Kong, Belgium, Qatar, Germany and representative offices in China, UAE, Bangladesh, South Africa, Indonesia, Thailand and Malaysia.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI became the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. ICICI Bank New York Branch is located at 500 Fifth Avenue, Suite 2830, New York 10110

USA-India Chamber of Commerce to hold BioPharma Summit on June 13
The USA-India Chamber of Commerce (USAIC), a bilateral Chamber of Commerce aimed at promoting and facilitating trade and investment between the United States and India , will organize its annual US-India BioPharma Summit on June 13 at Hyatt Regency Cambridge, Massachusetts.

Delivering Affordable Innovation through Cross Border Partnerships is the theme of the summit. The US-India BioPharma Summit is part of an ongoing dialogue with all the stakeholders including industry, investors, policy makers and academia, said Karun Rishi, President of the USA-India Chamber of Commerce, announcing the details of the summit.

Besides, Kapil Sibal, Minister of Science & Technology and Dr. M K Bhan, Secretary, Department of Biotechnology, key policy makers from India are likely to attend the summit for which a number of companies from India and the US have already confirmed their participation.

Prominent companies like Bristol Myers Squibb, Merck & Co, Eli Lilly, Pfizer, Wyeth, Biogen Idec, Vertex Pharma, Schering Plough, Jubilant, Advinus, Biocon and Aurigine are likely to participate. Among other are Lehman Brothers, Lazard, TVM Capital, Alexandria Real Estate and a number of investment bankers and venture capitalists.

Participation interest in the 2008 summit has been very encouraging, Karun Rishi said, adding the summit will focus on established and emerging Biotech and Pharmaceutical companies.

We expect a strong participation from emerging companies. This is an ideal platform to forge alliances and business partnerships, Karun Rishi said.

Discussions of the US-India BioPharma Summit 2008 will be centered on a wide range of issues -- Drug Discovery, Research & Development, India's role in Global Bio/Pharma R&D: Transition from "Generics" to "Drug Innovation", In/Out Licensing- New Partnerships and Business Models, Clinical Trials in India: Opportunities and regulatory issues, Neglected Diseases, Innovation & Intellectual Property Protection, Funding Innovation- Opportunities and Challenges, Investment Opportunities, Mergers, Acquisitions and Alliance Dynamics in the Indian Bio-Pharma Industry, Cross border investment trends in the Bio-Pharma industry and Industry-Academic Partnership.

With clinical trial in India generating lot of interest, Karun Rishi said, at the request of the industry a separate discussion session on it has been planned during the summit.

Through this discussion session, I am sure the participants would get clarity on various issues related to it including regulatory concerns and issues with Phase 1 trials, he said.

Referring to the recent decisions taken by several Indian companies like Ranbaxy, Nicholas Piramal, Dr. Reddy's Lab, Sun Pharma, Orchid Pharma and Wockhardt to create their research arm into separate companies, Karun Rishi said: This move will attract investments and open doors for collaborative research partnerships in drug discovery and development. This shows that Indian Bio Pharma industry is moving towards innovation, he added.

Karun Rishi said the overwhelming response coming from the companies both in India and the US is because of the successful summit last year. Our Summits are unique. These are not only result oriented, but we also provide continuity and regular follow up, he said.

The previous edition of the summit in 2007 had attracted over 300 participants. As a result of the 2007 Summit, several US companies have opened their offices in India. Many Indian companies have expanded their operations in the US. Level of business relationship with India of prominent companies like Amgen, Astra Zeneca, Biogen Idec, Bristol Myers Squibb, Eli Lilly, Merck & Co, Pfizer, Wyeth, Forest Laboratories, has gone up in 2007. Further, the USA-India Chamber of Commerce is actively promoting Industry-Investor-Academia partnership. “This kind of interaction is critical for innovation, he said.

Prominent Biotech, Pharma and Healthcare policy makers and researchers from the US have visited India in the last few months most notably Secretary Michael Leavitt of Health and Human Services, Elias Zerhouni, Director NIH, Noble laureate Prof. David Baltimore and Prof. Eric Lander of Broad Institute. We are working actively to bring on board Indian Bio Pharma research institutes like ICMR, NIPER and institutes under Department of Biotechnology, CSIR and Department of Science & Technology.

The USA-India Chamber of Commerce mission is to provide a pro-active and professional platform for senior business executives, industry associations and high ranking government officials in the United States and India to network, facilitate and promote trade, investments & economic cooperation. USAIC's four point agenda is: Trade, Investment, Policy and Advocacy. In cooperation with the industry and the government, USAIC runs the following industry focused Councils: US-India Investment Council, CIO Council and Biotech, Pharma and Medical Devices Council.

If you would like to know more about the US-India BioPharma Summit 2008 or the USA-India Chamber of Commerce, please visit www.usaindiachamber.org