USISPF held a roundtable titled ‘Collaboration and Co-Creation: Building India’s AI Path’ held in New Delhi. This was held in partnership with HPE and with renowned guest speakers from both the public and private sectors.
Discussions centered on policy priorities, investments, and partnerships required to go forward to build out India’s AI infrastructure. Key takeaways included the need for a holistic approach to the 7 pillars of the INDIAai mission and the need to build capacity and align with the best approaches globally. Participants highlighted security vulnerabilities and the need to digitize data and conversations on transparency to investing in large-language models. We look forward to more such stimulating discussions on the future of AI development and regulation in the future.
USISPF convened a roundtable discussion in New Delhi under the chairmanship of Shri Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, Government of India, Government of India.
The discussion held in partnership with the U.S. Grains Council, explored US-India collaboration on Sustainable Aviation Fuel (SAF).
The event brought together key stakeholders to address challenges to achieve SAF ambitions and foster collaboration between American and Indian industries.
The session featured Dr. Jennifer (Jen) Leisch, Co-lead, Climate, Energy, and Water, International Development Practice, Deloitte Consulting as the mentor and was moderated by Ripu Bhanjan Singh at USISPF.
November 19, Boston | November 20, Chicago | November 21, New York
USISPF, in partnership with Indian Venture and Alternate Capital Association (IVCA) recently had the honor of hosting Jayant Sinha, former Union Minister, Government of India and Senior Advisor at Eversource | An Everstone & Lightsource bp Venture, for a series of discussions in Boston, Chicago, and New York on India’s green transformation.
These engaging sessions brought together PE/VC investors, business leaders, and entrepreneurs to explore key opportunities in green energy, renewable power, and the e-mobility sectors in India.
Participants gained valuable insights into the technologies, innovative financing models, and the evolving policy frameworks driving India’s ambitious journey toward achieving net-zero by 2070. The discussions also emphasized strengthening the US-India Green Corridor to foster greater collaboration between our two nations.
A heartfelt thank you to our guests and gracious hosts — BV Investment Partners, Kearney, and Everstone Capital — for making this initiative a success.
20 November 2024 | Bengaluru and 21 November 2024 | Mumbai
USISPF Hosted a closed-door roundtable with Anne Neuberger in Bengaluru on the sidelines of the Bengaluru Tech Summit. It provided an opportunity for key stakeholders to discuss the future of US-India collaboration in cyber security and emerging technologies. Deputy NSA Neuberger shared details of the progress iCET initiative, acknowledging the importance of sustaining momentum in key areas. Industry leaders included space and defence start-up’s, Indian and US technology companies and venture capital firms who shared valuable insights on opportunities for deeper cooperation, particularly in cyber resilience and innovation. The session highlighted the growing partnership between the US and India in shaping the future of tech, and cyber resilience and security.
A similar close door discussion followed in Mumbai where USISPF convened the CISO’s and cyber leads for fintech majors along with key banks and financial institutions. Industry leaders emphasized the growing need for enhanced fintech resilience and secure digital payment systems. Neuberger underscored the importance of continuing cross-border cooperation to foster secure and inclusive financial systems.
Colonel Baljinder Singh (Retd.) , Director for Aerospace & Defense at USISPF, moderated a session with Maj. Gen. Brian W. Gibson, Director of Plans and Policy (J-5) at U.S. Space Command Maj. Gen. Gibson engaged with Indian space startups to explore joint commercial operations under U.S. Space Command.
The session provided invaluable insights into how Indian startups can drive advancements in space technology, fostering stronger US-India collaboration in the space sector.
USISPF hosted Finance Minister Nirmala Sitharaman for a series of one-on-one interactions and roundtable meetings with investors in Boston, New York City, and Washington, DC. The strong participation was a sign of the ongoing interest in India as a potential investment destination, including for manufacturers seeking to diversify their global supply chains.
Finance Minister Sitharaman took the opportunity to inform U.S. investors about India’s post-pandemic economic rebound and new incentive programs in place to facilitate foreign investment, and to hear from participants about various policy and regulatory challenges still to be addressed in the country. In her remarks, the Minister discussed the ways tech-enabled systems had enabled people to survive during the worst of the pandemic by using digital means to collect direct financial support, conduct government transactions, and receive critical market information. She outlined the budget measures taken to boost the recovery, highlighting reforms in insurance, banking, capital market regulation, and privatization.
Many of the participants spoke of large current investments in India and plans for substantially more, particularly if the government’s privatization and asset monetization plans move forward quickly. Several also said they are looking to incorporate India more fully into their global supply chains. They commended the pace of reform to date and urged the Minister to work with partners to increase regulatory consistency and transparency throughout the economy. Several also expressed concern about productivity losses from data localization and urged the government to consider a safe harbor policy for data with the United States.
Investors agreed India would benefit from measures to deepen its domestic capital markets and reduce the costs of debt and equity financing in the country. Reducing the size of public sector holdings in the financial sector is a critical first step. Other concrete measures include making it easier for foreign investors to register as Qualified Foreign Institutional Investors (QFII) in the country and to hedge their currency risks. They noted additional incentives and support for public private partnerships would support the government’s ambitious infrastructure investment goals.
On the issue of climate, several participants expressed eagerness to help finance India’s transition to a green economy, while the Minister noted India’s deep commitment to the issue, it being one of only a handful of countries to have met its climate goals.
All participants agreed the U.S.-India financial partnership is strong and will benefit from further tangible successes. They remain committed to working together on these issues to support India’s economic recovery and boost economic growth, jobs, and investment.
The second wave of COVID-19 in India led to a pause in high-level engagements between the United States and India. However, US efforts to support and assist India in its battle against the pandemic took forefront and both sides witnessed an unprecedented cooperation on the healthcare front. It is expected that healthcare cooperation between the two countries will continue both bilaterally as well on multilateral platforms like the Quad and the UN General Assembly.
After a successful trip by U.S. Secretary of Defense Lloyd Austin to India in March, and India External Affairs Minister S. Jaishankar’s recent trip to Washington, D.C., working level engagements have begun for the next round of the 2+2 Dialogue expected to be hosted in October in Washington D.C.
Both sides are working on a potential agenda, although it is unlikely that any high-level deliverables will be announced. Additionally, U.S. Trade Representative Katherine Tai remains engaged with her counterpart, Ministry for Commerce and Industry Piyush Goyal. While there is less likelihood that the stalled mini trade deal under the Trump administration will be addressed, a prospective broader trade deal with additional components is under discussion. The U.S.-India Trade Policy Forum has not convened since 2017. However, both USTR Tai and Minister Goyal are committed to holding the TPF and the CEO Forum this year.
On the defense relationship, the next round of the U.S.-India Defense Technology and Trade Initiative (DTTI) and a visit by officials of the Indian Defense Acquisition Council is also likely to take place in the coming months. On the energy and climate change front, U.S. Special Envoy on Climate Change John Kerry undertook a visit to India and met with the leadership to deepen ties and efforts on tackling climate change. Both sides are committed to remaining engaged on the issue and more high-level interactions are expected to take place. June 9, 2021
On July 29, USISPF and the United States Association of Former Members of Congress (FMC) co-hosted a virtual roundtable featuring Congressman Ami Bera, Congressman George Holding, and Becca Gould, Senior Vice President for Public Affairs at American Tower Corporation, moderated by Ambassador Miriam Sapiro. The discussion touched on many areas of opportunity for US-India trade relations, how to address outstanding challenges, and the importance of cooperation between the two countries in light of deteriorating relations with China and the ongoing COVID-19 pandemic.
Congressman Ami Bera spoke on the “endless” opportunities for the US and India to work together in the midst of the COVID-19 pandemic, pointing in particular to the opportunities presented by India’s pharmaceutical and vaccine development sectors. Another area of opportunity that he discussed was the potential for partnerships between US and Indian universities and research institutions. He also noted that, while a trade agreement has not yet been reached, it seems “one step away from completion” and the fact that the dialogue on a trade agreement has continued despite distractions from geopolitical and public health crises is optimistic.
Congressman George Holding highlighted the bilateral nature of support for the US-India relationship in the US, and the strides that the two countries have made in deepening their economic ties and defense cooperation. In terms of the future of this relationship, he noted that deteriorating relations between the US and China present an opportunity to deepen ties with India, and spoke to the potential for a deeper partnership in areas such as education and telemedicine as the experience of COVID-19 has led to a greater ability and willingness to work online.
Becca Gould highlighted the importance of ‘mini-deals’ between the US and India that aren’t as widely publicized as a potential trade agreement but are “ongoing daily” as a result of continued dialogue between the two countries, noting recent success in defense synergy, connectivity, and maintaining pharmaceutical exports.
On July 24, USISPF and HSBC collaboratively hosted a webinar on “Global Supply chain Opportunities in India,” featuring NITI Aayog CEO Amitabh Kant, Invest India Managing Director and CEO Deepak Bagla, and USISPF President and CEO, Mukesh Aghi.
In his opening statements, Dr. Mukesh Aghi highlighted the shift in U.S. businesses towards a “China plus one” strategy and investment in high ESG (environmental, social, and governance) geographies. He also pointed to the energy and pharmaceutical sectors as areas where U.S. companies are interested in investing in India.
Amitabh Kant, CEO of think tank NITI Aayog, spoke on the opportunities for India to become a global manufacturing hub, as COVID-19 has accelerated a trend towards diversifying global supply chains. Although other countries have benefited from U.S. companies seeking alternatives to China-based supply chains, he argued that India is the only sustainable option in the long term, since it has the “capability for large-scale production of export-ready goods and a large-scale domestic market.” He also highlighted the efforts of the Government of India to enact reforms on the ease of doing business and opening automatic-route foreign direct investment (FDI) across sectors, and to pursue a strategy of “make in India for the world.”
Deepak Bagla, Managing Director and CEO of Invest India, spoke on India’s goal of achieving a $5 trillion economy by 2025 and its advantage as an investment destination. He provided insight into Government of India initiatives such as the Empowered Group of Secretaries and project development cells, as well as state-level reforms and ‘single window’ processes to improve the experience of setting up business in India. He also spoke on the “cluster approach” and shortening of supply chains, in response to which India has developed a “plug and play” model for industrial clusters and industrial townships.
On July 28, USISPF hosted a virtual roundtable on the current state of the Indian distressed market and related investment opportunities. Featured speakers included Ambassador Frank Wisner, International Affairs Advisor at Squire Patton Boggs; Sunil Mehta, former chairman of Punjab National Bank and currently, the non-executive chairman of Yes Bank; and Cyril Shroff, Managing Partner of Cyril Amarchand Mangaldas, as well as L Viswanathan and Dhananjay Kumar from Cyril Amarchand Mangaldas. Stephen Lerner, Global Chair of the Restructuring and Insolvency Practice Group at Squire Patton Boggs, moderated a panel discussion in which the speakers shared their insight on alternative mechanisms for insolvency and bankruptcy resolution, and opportunities these present for U.S. investors in India.
In his opening statements, Ambassador Wisner characterized distressed assets as “storehouses of great value and platforms for future growth,” and said that opportunities to restructure and refinance distressed assets in India could be a “fruitful endeavor” for U.S.-India cooperation.
Sunil Mehta discussed the improvements to India’s insolvency and bankruptcy policies since the creation of the Insolvency and Bankruptcy Code, 2016 (IBC) as well as some challenges that remain, particularly in light of the COVID-19 pandemic. He highlighted pre-packaged solutions, one-time restructuring, and asset reconstruction companies as potential resolution platforms that are being considered as alternatives to the IBC. Finally, he discussed the success of the bank-led resolution structure in the case of Yes Bank, which has been able to raise $2 million in capital through its public offering earlier this month.
Cyril Shroff also discussed the importance of the IBC, saying that the stressed assets environment has changed significantly as a result of having a rules-based system for resolution according to global best practices, and that its success has been supported by proactive legislative and executive action, as well as landmark judgements by the Supreme Court of India. While noting that the government’s decision to suspend the IBC in March was an appropriate policy response at that stage, he warned that the suspension may be abused by companies whose financial difficulties are not due to COVID- 19. Looking to the future, he predicts flexibility and open-mindedness on legislative reforms, new vehicles for private capital, meaningful action on pre-packaged regime, notification of a model code for cross-border insolvency, and a financial sector resolution code.
On July 24, 2020, USISPF hosted a briefing with Under Secretary Mark Menezes of the Department of Energy to discuss the recent U.S.-India Strategic Energy Partnership (SEP) Ministerial as well as future energy collaborations with India. Moderated by Nolty Theriot, Senior Vice President of Government Affairs & Policy, the panel included partnerships from a variety of industry members, including companies like Chart Industries, Tesla, Exxon Mobile, Cheniere Energy, Air Products & Chemicals, Freeport Industries, Xcoal Energy & Resources, and JTI India Projects. The discussion offered insights into government and industry perspectives on opportunities and challenges in the U.S.-India energy relationship.
Under Secretary Menezes highlighted the industry perspective, especially pursuing an ‘all of the above’ approach as a means of advancing economic growth and energy security. Following the second iteration of the U.S.-India Strategic Energy Partnership Ministerial meeting, the Under Secretary pointed to energy trade as a critical point of the bilateral relationship. To that end, he emphasized recent growth in this partnership. The U.S.-India Gas Task Force has already seen success in expanding gas and oil trade, the U.S. is now India’s fifth largest supplier of natural gas, and there has been an increase in crude oil and coal imports in India from the U.S. Looking forward, the nuclear advancement discussions also represented one important avenue to advance the partnership. Thus, the abundant energy supplies from the U.S. have been well utilized in meeting Indian demand.
Energy technology exchanges were also featured as an important component of this relationship. The launch of the Public-Private Hydrogen Task Force, together with the Ministry of New and Renewable Energy, the USISPF and the Department of Energy focused on the production of hydrogen from both renewable and fossil fuel sources. Under PACE-R, efforts towards research and development on smart grids and biofuels were conducted by collaboration between American and Indian academics, national labs, and private players. Bloom Energy was spotlighted as a private player leading in the area of fuel cell use. These developments occurred in conjunction with workforce development benchmarks as well. The Under Secretary reiterated the Department of Energy’s commitment to gender diversity and skillset diversity, and the work of the South Asia Women in Energy platform to this end.
The panel offered space for industry members to share their work and feedback. Companies were in agreement on India’s critical role in future energy sector growth, both as a collaborator and as a significant market. To this end, the need for pilot projects and the acceleration of regulatory body certification was suggested as a means to speed up this development. The support for a hybrid model, where no one fuel source would ‘win out’, was reiterated, and hydrogen spotlighted as a big part of this future. India’s use of its deep-water territory as a source of domestic crude oil and potentially natural gas energy was suggested to reduce its dependence on imports. Companies expressed that it would be beneficial to both countries if it was an American IOC that assisted this transition. They also highlighted the need for India to update its investor protection regulations to facilitate this. Additionally, in terms of regulatory changes, the parity in India’s tax structure for LNG in comparison to other fuels was also suggested as the key to unlocking LNG demand in the country.
Participants also spoke of opportunities in new avenues, including reduced-emission sources of energy, Gasification technology, in addition to carbon capture utilization and storage, were discussed as opportunities for significantly cleaner uses of indigenous energy sources. The growing Indian steel industry also offered growing opportunities to export metallurgical coal to India, a critical input for the industry that India does not produce in the right grade abundantly. As a win-win situation, it offered the U.S. a huge opportunity as it is a 7-billion-dollar market. On India’s end, the quality of U.S. coal, both metallurgical and low-ash, low-moisture thermal coal, is among the world’s best.
Finally, participants highlighted some regulatory changes that would increase the ease of doing business bilaterally. While Indian clients typically preferred flexible short or medium-term contracts (particularly given the current economy), long-term contracts were seen as most beneficial to the relationship, and investments in infrastructure and shifting market dynamics would be useful to this end. Facilitating face-to-face meetings with a wider consortium of Indian companies was also suggested as a way to expand the buyer segment. Finally, achieving more clarity and consensus on tariffs, aligning safety standards to make sense for U.S. companies, and streamlining procedures for India-based operations would go a long way in boosting business.
Under Secretary Menezes concluded the call by commending the industry members for bringing in cutting edge technology to use. While India has a great future of growth in the energy sector, bringing technology across all fuel sources to meet this demand in a manner that will reduce emissions is essential. The Department of Energy is committed to working bilaterally through potential hurdles, from tax policy to regulations, and in collaboration with industry members across both nations to this end.
On July 14th, 2020, the U.S.-India Strategic Partnership hosted a panel by representatives of the state government of Chhattisgarh featuring Mr. R P Mandal, Chief Secretary; Mr. Manoj Kumar Pingua, Principal Secretary, Department of Commerce & Industries; Mr. Amitabh Jain, Additional Chief Secretary, Finance; Mr. Rakesh Chaturvedi, Principal Chief Conservator of Forest who offered insights to the capabilities and potential of the state, as well as opportunities for collaboration with the United States.
Since its creation in 2000, its industry has grown exponentially, and the state has achieved a leading position in the start-up and ease of doing business rankings for the nation. As a consequence of its shared borders with seven other states, it enjoys market access to a population of 510 million people, facilitated by its robust transportation systems.
What makes Chhattisgarh an attractive investment destination?
Abundance of raw materials: Chhattisgarh also has many raw materials as a consequence of its geography. It is abundant in 28 minerals, making it an ideal destination in India for companies in iron, steel, and power industries. It also is home to many forest products, due to its 44% forest cover. This segment has seen a lot of growth with the export of forest produce across the globe, and is assisted by the fact that it is inherently organic, although full certification is yet to be acquired. Tribal families acting in a federation in the industry receive the Minimum Support Price and ensure the benefits of value addition reach the tribes. It is an area with great investment potential, and the federation is considering creating a BBB board to increase visibility of these raw materials.
Human Capital: On the human capital side, its education ecosystem is well established. With 3000 vocational training institutes, it is home to the largest skill development effort in India. It also has a variety of public and private universities and colleges, as well as ITIs, to meet various educational needs.
Geographical Connectivity: The state has also invested in its connectivity to increase ease of transport for industries, with national highways connecting Chhattisgarh to other major cities, as well as railways connecting remote regions of the state. Its ‘Smart City’, Nava Raipur, has state-of-the-art infrastructure as well as dedicated sectors for housing and non-polluting industries, making it an ideal location for technology-based industries.
Industrial growth: Currently, industries in the state are in sector-specific industrial parks to facilitate cluster-based development in the state and all districts. Industries can be grouped by type: from ‘core strengths’ like steel, power and aluminum, to ‘sunrise sectors’ like food processing and biofuels, and ‘growth potentials’ like pharmaceuticals and textiles. This overview, along with Chhattisgarh’s ‘single window’ system and cost-efficient business opportunities, make it an ideal location for foreign capital.
Opportunities for collaboration with US Industry:
Manufacturing in varied sectors, electronics, food processing, energy, and others. Some specific policies encourage the United States to consider Chhattisgarh as a location for capital. A highlight would be the Chhattisgarh Industrial Policy, which offers special bespoke incentives and subsidies for investments above $13 million and similar incentives in electronics and ITEs for fixed capital investments.
Panelists pointed out that Chhattisgarh had fortunately fared quite well with COVID, with traceable contact of patients and no community spread. While the lockdown led industries to shut temporarily, processing industries and industries with continuous processes had continued to function. Currently, since most industries have opened to function at over 80% capacity and migratory laborers have returned to the state increasing labor supply, the moment is opportune to invest in the supply chain of the state. Given the natural resources of the state and policy reforms to attract and favor investment, Chhattisgarh has committed itself to growing into its full industrial potential.
On July 16, USISPF hosted a virtual roundtable with Ambassador Nicholas Burns, senior counselor at the Cohen Group and former U.S. Under Secretary of State for Political Affairs. Speaking with members of USISPF’s Board of Directors, Ambassador Burns shared his insights on the shifts in the U.S.’s foreign policy frameworks, the role of global institutions in the post-COVID world, and the importance of deepening U.S.-India relations.
Speaking with USISPF President and CEO Mukesh Aghi, Ambassador Burns outlined the challenges faced by the U.S. and India as a result of the ongoing pandemic, global economic crisis, and the actions of an increasingly aggressive China. He emphasized the importance of the U.S.-India relationship to addressing these challenges, both in a bilateral and multilateral context.
During a period of discussion with USISPF’s Board of Directors and other participants, discussion focused on U.S.-India relations in the context of broader regional dynamics and opportunities for defense and economic cooperation with Japan and Australia through the ‘Quad’ framework. Ambassador Burns also assessed the impact of turning points in the bilateral relationship, such as the Civil Nuclear Deal and 2017 declaration of strategic defense partner status.
On May 12, Rahul Ghosh, Senior Vice President of Global Emerging Markets, Credit Strategy & Research, at Moody’s, joined USISPF members on a webinar to share high-level views on the credit outlook of emerging markets.
Overall, Mr. Ghosh highlighted that the pandemic’s economic and financial fallout will heighten credit risks for emerging market issuers. While external and fiscal buffers vary across regions, low-rated sovereigns with large external repayments are most vulnerable to prolonged stress. Additionally, the fallout from the pandemic will increase the corporate default rate in emerging markets over the coming year. Finally, he noted that future challenges, as the world recovers from COVID-19, include lower rates and higher government debt, changing consumer habits, climate risks, protectionism, tech disruption, and income inequality.
His presentation focused on emerging markets more broadly, but during the Q&A session with USISPF members, Mr. Ghosh evaluated India’s ongoing fiscal response to the economic impact of COVID-19, including the RBI’s measures to increase liquidity, as well as some proposed or hypothetical steps the Government of India could take in the future. He also provided his insight on the impact the current global economic challenges could have on India’s banking and non-banking financial company (NBFC) sectors.
On May 5, Javier Piedra, Deputy Assistant Administrator of the Bureau for Asia, USAID, and Ramona El Hamzaoui, Deputy Mission Director for India, USAID, joined USISPF members on a webinar to discuss USAID’s COVID-19 response in India. Other colleagues from USAID were also on the webinar including Public Health Program Specialist Sangita Patel and Nahel Sanghavi, Senior Advisor for Innovation & Partnership, to share insights into efforts related to their specific expertise.
Javier Piedra began the discussion by highlighting that, since the outbreak of COVID-19, the U.S. government has committed more than $775 million to aid in more than 120 countries. In India, he pointed to the importance of addressing ‘second order effects’ of COVID-19, such as supply chain issues, as well as its immediate impact.
Ms. El Hamzaoui spoke on shift in USAID’s relationship with India, highlighting the agency’s current partnership-based initiatives to support not just India’s development but India’s role in the region and globally. So far, to address COVID-19 in India, USAID has provided $6 million in aid to support the Government of India’s response efforts. Interagency teams have supported initiatives ranging from helping female textile workers shift to mask production to training health care workers in contact tracing. USAID has also been assisting with initiatives to ensure that other health issues are not ignored during the COVID-19 crisis, from developing an app to support mother and infant health to facilitating the export of vital HIV/AIDS medication from India to Laos.
During a Q&A period with USISPF members moderated by USISPF Senior Advisor Vikram J. Singh, Ms. El Hamzaoui, Mr. Piedra, Ms. Patel, and Mr. Sanghavi spoke on topics ranging from India’s health care infrastructure and medical supply and pharmaceutical industries, to innovative solutions from the Indian technology sector and the CSR contributions of private-sector partners.
On May 5, Mugdha Sinha, Secretary of Science & Technology for the Government of Rajasthan, joined USISPF members through USISPF’s ongoing webinar series. In a discussion moderated by USISPF Chief Operating Officer Gaurav Verma, Ms. Sinha spoke on the Government of Rajasthan’s COVID-19 response and relief efforts, and the role that technology has played in this response.
Speaking on the Government of Rajasthan’s response to the COVID-19 outbreak, Ms. Sinha highlighted the proactive creation of two committees shortly after the first lockdown was announced, to address the needs of people from other states stranded in Rajasthan during the lockdown and to develop a post-COVID-19 economic strategy. Now that the lockdown is in its third stage, relaxing restrictions on movements in some district and allowing businesses and factories to resume activities, the Government of Rajasthan is now working to help people from Rajasthan who have been stranded elsewhere, domestically or abroad. Ms. Sinha identified new challenges related to these efforts, such as screening and quarantine measures to prevent new outbreaks of COVID-19 and increased demand for rural jobs as migrant workers return to their homes, but highlighted that so far, Rajasthan’s containment efforts have been efficient, effective, and proactive. She also highlighted that these efforts have been calibrated to save lives without risking livelihoods.
In terms of how Rajasthan has leveraged technology in its COVID-19 response, Ms. Sinha noted that ‘e-governance’ measures were already in place prior to the lockdown, which eased the transition to working from home for government officials. As well as contact tracing apps and processes virtually connecting the Government of Rajasthan to its constituents, the state has leveraged technological solutions to continue providing public access to cultural activities such as museums, which also provides continued employment to artists and artisans.
On April 29, Sunjeev Sanyal, principal economic advisor to the Government of India’s Ministry of Finance, briefed USISPF members on the state of the Indian economy and what is in store as the country reopens from its COVID-19 lockdown.
In a discussion moderated by Kaku Nakhate, President and Country Head, India, for Bank of America, Sanyal highlighted that India – and the rest of the world – should not imagine that economic recovery will mean a return to the pre-coronavirus world, but a ‘fundamental reset.’ He also said that India will play an active role in this post-coronavirus round of ‘rule-setting,’ pointing to the recent G20 endorsement of an action plan formed by the framework working group co-chaired by India and the UK. On the possibility of India playing a larger role in the restructuring of global supply chains, he said that the country has to be flexible and work with industry and partners as the situation continues to evolve.
In terms of the Government of India’s policy response to the economic impacts of COVID-19, he characterized this approach as having three steps. The initial step was to cushion the economic impact of COVID-19 through efforts such as the stimulus package targeting India’s most vulnerable citizens and pushing back financial deadlines. It is now shifting into the ‘opening up’ stage, as the staggered relaxation of India’s lockdown has allowed many areas to resume manufacturing and the movement of goods. At some point, the approach will ramp up for the ‘rebuild’ stage. Sanyal also noted that India has been successful in not expending its resources too quickly, giving it the monetary and fiscal space needed to respond as recovery efforts continue.
In a Q&A session with USISPF members, Sanyal provided updates on and insight into topics such as India’s new FDI rules, the current low oil prices, India’s fiscal deficit post COVID-19, and calls for increased spending on medical infrastructure, which he warned must include funding for public health and sanitation as well as hospitals. When asked on what economic reforms India should prioritize as it reopens, Sanyal noted that it depends on feedback from companies, but a lot of action will have to happen at the state, rather than the federal, level— pointing to Uttar Pradesh as a state which has already risen to the occasion.
USISPF and Squire Patton Boggs co-hosted a webinar briefing members on the latest policy responses to COVID-19 from a U.S., European, and Indian perspective. Speakers included Frank Samolis, Partner at Squire Patton Boggs; Ambassador Frank Wisner, International Affairs Advisor at Squire Patton Boggs; former U.S. Representative Joe Crowley; Matthew Kirk, International Affairs Advisor at Squire Patton Boggs; David Stewart, Principal at Squire Patton Boggs; and Dharmakirti Joshi, Chief Economist at CRISIL.
David Stewart, Matthew Kirk, and Dharmakirti Joshi spoke on the respective government efforts of the U.S., Europe, and India to reopen their economies while continuing to contain the spread of the COVID-19 virus. David Stewart opened the discussion by highlighting the U.S. government’s economic stimulus efforts in response to COVID-19, including the CARES Act, the Paycheck Protection Program, and the Main Street Lending program. In Europe, different countries have different in their impact and response to the COVID-19 pandemic, but across countries, efforts to reopen the economy largely involve adhering to social distancing measures, using track-and-trace systems to contain the further spread of the coronavirus, and financial packages. Dharmakirti Joshi stated that, while India has a limited fiscal space in which to organize its response, the country has several options to finance its response. He also noted that India has not “front-loaded” its response, and the next phase of its policy response should be aimed at support for small and medium businesses.
In a Q&A session with USISPF President and CEO Mukesh Aghi, Joe Crowley, Frank Wisner, and Frank Samolis shared their perspectives on the relationship between the U.S. and India. Rep. Crowley shared his insight into how the relationship between the U.S. and India has grown over the past few decades, and Frank Samolis spoke on the possibility of future trade negotiations between the U.S. and India. Amb. Wisner stated that cooperation between the U.S., Europe, and India is vital to containing COVID-19 and bringing back their economies, especially given the shifts occurring in the global economy as a result of COVID-19. He also highlighted the importance of India presenting a competitive and attractive market for foreign investment, to take advantage of global interest in diversifying supply chains.
On April 9, Amb. Taranjit Sandhu, the Ambassador of India to the United States, joined USISPF members on a webinar to provide updates on India’s COVID-19 response and what the Embassy of India is doing to assist citizens and businesses at this difficult time.
In terms of India’s response to COVID-19, Ambassador Sandhu emphasized that India’s goal is to minimize the human cost of the pandemic and to contain the virus. He highlighted the $22.5 billion stimulus package the Government of India announced in March, which provides targeted aid to India’s most vulnerable citizens. He also noted the Government of India’s recent decisions to extend tax deadlines and the visas of foreign nationals unable to leave India due to the national lockdown. He spoke of the opportunities for the U.S. and India to collaborate on issues related to COVID-19 in areas ranging from technological transfers to vaccine development, pointing to the recent teleconference and Twitter exchanges between Indian Prime Minister Narendra Modi and U.S. President Donald Trump in which the two leaders reiterate their commitment to working together at this time. He also stated that there will be many opportunities for India and the U.S. to strengthen economic ties in the post-pandemic future, particularly in the energy sector.
Ambassador Sandhu also answered questions from USISPF members related to lockdown exemptions for essential goods and services, the Government of India’s recent decision to ease restrictions on pharmaceutical exports, and where to find updates on pandemic-related policy decisions. The Ambassador encouraged U.S. companies with a presence in India to reach out to the Embassy’s commerce wing for assistance on specific issues.
On April 16, Sanjay Chadha, Additional Secretary of the Ministry of Commerce and Industry, joined USISPF members on a webinar to provide updates on the Ministry of Commerce & Industry’s response to the ongoing COVID-19 pandemic. In discussion with USISPF CEO & President Dr. Mukesh Aghi, Secretary Chadha provided insight into the Government of India’s next steps, and highlighted opportunities for the U.S. and India to deepen their economic partnership in the future.
Secretary Chadha stated that the government of India has two priorities right now, to contain the coronavirus and to address the impact of COVID-19 on the economy. He spoke optimistically about the future of U.S.-India trade, highlighting U.S. companies as playing an important role in reopening India’s economy after the lockdown is lifted. He advised USISPF member companies on procedures for seeking assistance on logistic and operational issues as a result of the national lockdown and, noting that Ministry of Home Affairs (MHA) guidelines are interpreted on a state-by-state basis, reiterated the importance of communicating with local authorities.
