Proposal for Focus Country - UK

Submitted by:

Table of Contents
S No. Topic

1.

Water Sector in India

2. Opportunity segments in Indian water Sector

3. Water India 2017
4. Proposal for Focus Country
5. Budget Estimate
6. Post Show Report 2015
7. India UK Bilateral Relations
8. CII and UK

Water Sector in India

Introduction

Confederation of Indian Industry

Growing population coupled with sustainable developmental efforts has an expected increasing
stress on water resources. The uneven distribution over time and space of water resources and their
modification through human use and abuse are sources of water crises in many parts of the world. All
these result in intensifying the pressure on water resources leading to conflict among users and
excessive pressure on the environment.
The importance of freshwater resources to human life and development cannot be emphasized
enough. The essential role these resources directly relate to human health, facilitating trade,
communication, inland navigation, agriculture, fishing, fish-farming, energy production, recreation,
tourism, culture and location of human settlements.
Almost a quarter of the worlds supply of fresh water is in Lake Baikal in sparsely populated Siberia.
With 31% of global freshwater resources, Latin America has 12 times more water per person than
South Asia. Some places, such as Brazil and Canada, get far more water than they can use; others,
such as countries in the Middle East, get much less than they need. And water-stressed regions in
China and India are not relieved by Icelands water availability of more than 300 times the 1,700 cubic
metre thresholds. Almost a quarter of Sub-Saharan Africas population lives in a water-stressed
country.
As a region Sub-Saharan Africa is reasonably well endowed with water, but countries like Kenya,
Malawi and South Africa are below the water-stress threshold. What matters is local availability and
access between populations through water infrastructure. Northern China, for example, has less than
a quarter of the per capita water availability of the south. Brazil is near the top of the world league for
water availability. However, millions of people living in the huge drought polygon, a semi-arid area
spanning nine states and 940,000 square kilometres in the northeast, regularly experience chronic
water shortages. Ethiopia, with several major lakes and rivers, abundant groundwater and a large
volume of rainfall, almost crosses the water-stress threshold. Time is another important part of the
water availability equation. Much of Asia receives almost 90% of its annual rainfall in less than 100
hours, generating risks of short, intensive flooding during some parts of the year and prolonged
drought during the rest.

Confederation of Indian Industry

With average annual availability of about 1,200 cubic metres per person the Middle East is the worlds
most water-stressed region, whereas Palestinians, especially in Gaza, experience some of the
worlds most acute water scarcityabout 320 cubic metres per person. The availability, use and
needs of water are changing across the world. Large parts of all continents are experiencing high
rates of ecosystem impairment, particularly reduced soil quality, biodiversity loss, and harm to
amenity and cultural heritage values. By 2025 more than 3 billion people could be living in waterstressed countriesand 14 countries will slip from water stress to water scarcity. Developments to
2025 will include:

Intensifying stress across Sub-Saharan Africa, with the share of the regions population
in water-stressed countries rising from just above 30% to 85% by 2025.

Deepening problems in the Middle East and North Africa, with average water availability
falling by more than a quarter. By 2025 average water availability is projected to be just
over 500 cubic metres per person, and more than 90% of the regions people will be
living in water-scarce countries by 2025.

High-population countries such as China and India entering the global water-stress
league.

National Level
The Indian economy and society face daunting challenges in the water sector. The demands of a
rapidly industrialising economy and urbanising society come at a time when the potential for
augmenting supply is limited, water tables are falling and water quality issues have increasingly
come to the fore.
Rainwater: Owing to physiographic factors, rainfall in India is highly variable. More than 80 per cent
of the annual run-off of the rivers occurs in the monsoon months of June to September. Due to
excess rainwater, floods occur in certain parts. Droughts are also experienced due to deficient
rainfall.
Rivers: Of the many rivers in India, 12 are classified as major rivers whose total catchment area is
252.8 Mha. There are huge variations in the extent of catchment areas of river basins and their
surface water potential. The Ganga and Brahamputra -Barak river basins account for 60% of the
average annual water resources potential. However, due to topographical constraints and spatio-

Confederation of Indian Industry

temporal variability of the availability of water only 48% of the total water potential in the Ganga basin
and 4% of the total water potential in the Brahmaputra basin is utilized. On the other hand, three river
basins in southern India (Godavari, Krishna, and Cauvery) together represent 21% area of the
country area while they account for only 11% of the surface water.
The per-capita water resource availability of river basins varies from a low of 240 m 3 in the Sabarmati
basin to a high of 17,000 m 3 in the Brahmaputra basin, while water withdrawals vary from 243 m 3 in
the Meghna basin to 1,670 m3 in the Indus basin. The basins of the westerly flowing rivers of the
Kutch and Saurashtra regions of Gujarat, and the Luni riverhome to 6 % of the Indian population
are classified as physically water-scarce and food-dependent. The Indus and Pennar river basins
with 7% of Indias populationare classified as physically water-scarce, but these basins have
significant food surpluses.
Groundwater: The use of water in India is characterised by an increasing dependence on
groundwater for irrigation. The annual extraction of groundwater in India (210 billion cubic metres) is
by far the highest in the world. Over the last four decades, around 84% of the total addition to the net
irrigated area has come from groundwater. But groundwater is being exploited beyond sustainable
levels and with an estimated 30 million groundwater structures in play, India may be hurtling towards
a serious crisis of groundwater over-extraction and quality deterioration. Table 1 shows that between
1995 and 2004, the proportion of unsafe districts (semi-critical, critical and overexploited) has grown
from 9% to 31%, the proportion of area affected from 5% to 33% and population affected from 7% to
35%. An assessment by NASA showed that during 2002 to 2008, India lost about 109 km 3 of water,
leading to a decline in water table to the extent of 3-5 cm per annum.
The water sector is plagued by issues pertaining to water scarcity, underdeveloped treatment and
supply infrastructure, contamination and inefficient end use today. The per capita availability of water
for the country as a whole has drastically decreased from 5177 m 3/year in 1951 to 1545 m 3/year in
2011. Figure 1 captures the trend in per capita availability of water for various year.
Figure 1: Per capita water availability

Per capita water availability in

m3/year

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6000

5177
5000
4000

Water stress 1700

m3/capita/year

3000

Water stress 1700

2209
1820 3
m /capita/year
1545
1341

2000

1140

1000
0
1951 1961 1971 1981 1991 2001 2011 2021 2031 2041 2051 2061

Table 2 suggests water demand in various sectors- agriculture, industry, energy and domestic
consumption is bound to increase overtime, exerting pressure on the resource. The water demand for
industry is expected to nearly double by 2025.

Table 2: Sectoral Water Demand for Various Sectors (bcm)

Sectors

Standing Sub-Committee Report-

NCIWRD

Irrigation
Drinking

MoWR
2010
688
56

2010
557
43

2025
910
73

2050
1072
102

Confederation of Indian Industry

2025
611
62

2050
807
111

Water
Industry
Energy
Others

12
5
52
813

23
15
72
1093

63
130
80
1447

37
19
54
710

67
33
70
843

81
70
111
1180

Several factors influence Indias future water supply and demand. These include spatial variation and
future growth of the population, urbanization and income, and associated changes in dietary
preferences, groundwater use, industrial and environmental water demand. Source : UN Report on
India Water Resources at a glance :Average annual Precipitation

4000 BCM

Avg. precipitation during Monsoon (Jun-Sept)

3000 BCM

Natural Runoff

1986.5 BCM

Estimated utilizable surface water resources

690 BCM

Total utilizable ground water resources

433 BCM

Total annual utilizable water resources

Per capita water availability

1123 BCM
1720.29 cum

(Source: Water Resources at a Glance 2011, CWC, New Delhi, (http://www.cwc.nic.in))

Opportunity segments in Indian water Sector

Municipal:
Water supply and sanitation
Treatment and Purification
Pumping and water transportation
Waste water treatment and recycling

Confederation of Indian Industry

Industrial / Building / Institution:

Hotels,Hospitals,Shopping Malls,Apartment complexes
Process water treatment
Waste water treatment and recycling
Residential:
Home Purifiers
Bottled Water

WATER INDIA 2017

The facilities to treat waste water are not adequate in any city in India.
Presently, only about 10% of the waste water generated is treated; the rest
is discharged into the ground and water bodies. Due to this, pollutants enter
groundwater, rivers, and other water bodies.
With rapid urbanization there is an increasingly greater demand on scarce
natural resources like Water. There is also an urgent need to have more
efficient utilization and less wastage of Water.

Confederation of Indian Industry

Confederation of Indian Industry (CII) is organising an International

Exhibition on Water from 2-4 February 2017.
Water India 2017 will be a showcase event during which companies will
display the latest advancements in technologies in this sector. The event
will also focus on areas where there is a need for better Infrastructure and
management concerning issues regarding Water supply.
The event expects participation from major national and International
companies showcasing their latest technologies in Water Purification,
Recycling & Supply and related industries, the principle users of which are
various public utility services in our country. The exhibition will be an ideal
platform for promotion of new products and technologies to the end users.

EXHIBITOR PROFILE
Water Treatment
Waste water Management and
Recycling
Water Supply and Services
Water Management Systems
Water Conservation
Desalination and Distillation
Filtration Equipment
Water Harvesting Technologies
Project Developers
Plant Builders
Research and Technical
Institutes
Transportation, Distribution
& Collection systems
Sanitation systems
GIS Systems
Irrigation

Pipes, Fittings and Valves

Packaged Drinking Water
Instrumentation and
Process Control
Water Treatment Chemicals
Boilers and Cooling Towers
Pumps and Motors
Effluent Treatment Systems
Water Pollution
Project Developers
Project Finance Companies
Consulting Engineers
Engineering Companies
Automation Systems
Quality Testing Laboratories
Standardisation
Equipment / systems

Confederation of Indian Industry

VISITOR PROFILE
Government Officials from
o
o
o
o
o
o
o
o

Ministry of Water Resources

Ministry of Environment & Forests
Ministry of Urban development
o Ministry of Rural Development
Municipal Authorities
Jal Boards
Pollution Control Boards
Public Health and Works Department
Government Agencies

o
o
o

o
o
o

Technocrats, Advisors and Policy

Makers
Distributors and Dealers
Manufacturers and System
Integrators
CEOs and Decision Makers
Builders, Contractors and Architects
Engineering companies
NGOs
Consultants
Operations and Manufacturing
Heads

Utility Heads/ Engineers

from the End User /
Industries like:

o
o
o
o
o
o
o
o
o
o
o
o
o
o
o

Agriculture
Auto parts / Automobile
Beverages
o Building and Housing
Development
Cement
Distillery / Brewery
Fertilizer Plants
Food Processing
Hospitals
Hotels and Clubs
Leather
Paints
Petrochemical Plants
Pharmaceuticals
Plastics
Power Plants
Pulp and Paper
Refineries
Rubber
Steel Plants
Sugar
Textiles and Garments

Confederation of Indian Industry

Proposal for Focus Country

UK

Confederation of Indian Industry

Focus Country Concept leads to

Largest Projection/showcasing of the country in an exclusive
area
Government Involvement
Role/involvement of Apex Business Industry Association from
the Partner
Country
Special promotional campaign to promote exhibitors
Exchange of Business & Government delegations
Visit by Senior Dignitaries
Involvement of respective Government Missions in both the
countries

Confederation of Indian Industry

Terms of Reference for Focus Country

The Confederation of Indian Industry (CII) has invited UK to participate as Focus Country at the
Water India 2017 at the 22 International Engineering & Technology Fair (IETF), to be held at
Pragati Maidan, New Delhi, India, from 2-4 February 2017. The Water India 2017 is used as a
platform by countries and companies to showcase entrepreneurial and technological expertise,
and for forming strategic partnerships, business networking and international benchmarking.
In view of this, the two parties hereby agree as follows:
1. The Focus Country Pavilion will occupy a net area of 500 Sq mts of Indoor Raw Space at
Water India 2017 to be held at Pragati Maidan, New Delhi, India.
2. All payments shall be made to CII through US Dollar. Each unit price per square meter of
Indoor Raw space is US$ 240 (US Dollar Two hundred Forty only) and all bank charges on
account of transfer of funds to CII will be borne by The Focus Country. A special discount of
US$ 24 per sqmt on the rental will also be offered to the Focus Country.
3. Charges for Electricity consumption (on actual connected load), Air Conditioning of Halls at
the prevailing rates (at the time of the exhibition), Advertisements booked by the participating
companies of Focus Country, and any other charges for services/extra furniture etc., will be
billed extra to Focus Country.
4. Focus Country will pay all Government of India taxes/Levies prevailing in India that will be
applicable for participation in Exhibitions as decided by the Government of India from time to
time. Taxes applicable currently for participation in Exhibitions are as follows:Service Tax on total billing: 14.00 per cent
Entertainment Tax: As applicable (If any)
5. The following payment schedule is to be followed:-

Confederation of Indian Industry

 Initial payment of 30% of the assumed total payment shall be made within a week of
signing of the MOU;
The entire Balance payment including electricity, taxes and other charges shall be
paid by 30 December 2016.
6. UK will organize the Focus Country participation and construction of the Focus Country
Pavilion in accordance with the overall Exhibitor rules and regulations of IETF 2017.
7. The organizer of the Focus Country Pavilion shall decide upon the design and the activities
within the space allotted to them as per the IETF Design and Construction Guidelines in
consultation with CII.

Confederation of Indian Industry

UK Pavilion
Budget Estimate
Net Area of 500 sq mt
Expenditure Heads

Total Cost
USD

Space Rentals
500 sq mtrs @ USD 216 per
sqmt
Electricity
50 KW @ USD 80 per KW

Sub Total

Service Tax

Total

108,000

4,000

112,000

15,680

127,680

Confederation of Indian Industry

India UK Bilateral Relations

Introduction
United Kingdom is an island country spanning an archipelago including Great Britain located in Western
Europe comprised of England, Scotland, Wales, and Northern Ireland. United Kingdom is surrounded by the
Atlantic Ocean, the North Sea, the English Channel, and the Irish Sea. It lies near vital North Atlantic sea lanes
and is only 35 km from France and linked by tunnel under the English Channel. The geography is mostly
rugged hill and low mountains. The government system is constitutional monarchy and a Commonwealth
realm. The chief of state is the Queen and the head of government is the Prime Minister. United Kingdom has
an advanced open market economy in which the prices of goods and services are determined in a free price
system. United Kingdom is a member of the European Union (EU).

Economy
Capital
Currency
Population
Area
GDP (Purchasing power

London
Pound Sterling
63,742,977 (July 2014 est.)
243,610 sq km
$2.435 trillion (2014 est.)

parity)

$2.359 trillion (2013 est.)

GDP

contribution

by

agriculture: 0.6%

sector (2014 est)

industry: 20.6%

Per-capita GDP (PPP)

services: 78.8%
$37,700 (2014 est.)
$36,800 (2013 est.)

Unemployment
Agriculture Products

6.2% (2014 est.)

cereals, oilseed, potatoes, vegetables; cattle, sheep,

Industries

poultry; fish
machine tools, electric power equipment, automation
equipment, railroad equipment, shipbuilding, aircraft,
motor

vehicles

and

parts,

electronics

and

communications equipment, metals, chemicals, coal,

Confederation of Indian Industry

petroleum, paper and paper products, food processing,

Total Exports

textiles, clothing, other consumer goods.

$503.4 billion (2014 est.)
$476.6 billion (2013 est.)

Major Exports

manufactured

goods,

Export Partners

beverages, tobacco
Switzerland 13.8%,

fuels,
Germany

chemicals;
9%,

US

food,
8.8%,

Netherlands 7.6%, France 6.4%, Ireland 5.7%, Belgium

Total Imports

4.3% (2013)
$802.1 billion (2014 est.)
$824.4 billion (2013 est.)

Major Imports
Import Partners

manufactured goods, machinery, fuels; foodstuffs

Germany 13.9%, China 8.5%, Netherlands 8.5%,
France 6%, US 5.6%, Belgium 5% (2013)

The UK, a leading trading power and financial center, is the third largest economy in Europe after Germany
and France. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about
60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil resources,
but its oil and natural gas reserves are declining and the UK became a net importer of energy in 2005.
Services, particularly banking, insurance, and business services, are key drivers of British GDP growth.
Manufacturing, meanwhile, has declined in importance but still accounts for about 10% of economic output. In
2008, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector.
Falling home prices, high consumer debt, and the global economic slowdown compounded Britain's economic
problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN
(Labour) government to implement a number of measures to stimulate the economy and stabilize the financial
markets. Facing burgeoning public deficits and debt levels, in 2010 the CAMERON-led coalition government
(between Conservatives and Liberal Democrats) initiated an austerity program, which aimed to lower London's
budget deficit from about 11% of GDP in 2010 to nearly 1% by 2015. The CAMERON government raised the
value added tax from 17.5% to 20% in 2011. It has pledged to reduce the corporation tax rate to 20% by 2015.
However, the deficit still remains one of the highest in the G7, standing at 5.8% in 2013. The Bank of England
(BoE) implemented an asset purchase program of 375 billion (approximately $586 billion) as of December
2014. During times of economic crisis, the BoE coordinates interest rate moves with the European Central
Bank, but Britain remains outside the European Economic and Monetary Union (EMU). In 2012, weak

Confederation of Indian Industry

consumer spending and subdued business investment weighed on the economy, however, in 2013 GDP grew
1.8%, accelerating unexpectedly because of greater consumer spending and a recovering housing market.
The Gross Domestic Product was estimated to have increased by 0.4% between Quarter 4 (Oct to Dec) 2014
and Quarter 1 (Jan to Mar) 2015, revised up 0.1 percentage points from the previous estimate of GDP
published in May 2015. GDP was estimated to have increased by 3.0% in 2014, compared with 2013, revised
up 0.2 percentage points from the previously published estimate.
The Consumer Prices Index rose by 0.1% in the year to May 2015, compared with a 0.1% fall in the year to
April 2015. The largest upward contribution to the change came from transport services, notably air fares with
the timing of Easter in April a likely factor in the movement. There were also significant upward effects from
food and motor fuels. The largest offsetting downward effect came from recreation and culture, particularly
games, toys and hobbies (such as computer games) and data processing equipment.
The unemployment rate was 5.5%, lower than for the 3 months to January 2015 (5.7%) and for a year earlier
(6.6%). There were 31.05 million people in work, 114,000 more than for the 3 months to January 2015 and
424,000 more than for a year earlier.
The deficit on trade in goods and services was estimated to have been 1.2 billion in April 2015, compared
with 3.1 billion in March 2015. This reflects a deficit of 8.6 billion on goods, partially offset by an estimated
surplus of 7.4 billion on services. In April 2015, the trade in goods deficit narrowed by 2.1 billion. This reflects
both an increase in exports and a decrease in imports. Exports of goods increased by 0.7 billion, of which
0.6 billion was attributed to countries outside of the EU. Imports of goods fell by 1.5 billion, reflecting falls in
the imports of miscellaneous manufactures.
The Index of Services is estimated to have increased by 2.8% in March 2015 compared with March 2014. All of
the 4 main components of the services industries increased in the most recent month compared with the same
month a year ago. The largest contributions came from: business services and finance, which contributed 1.2
percentage points to total growth; and distribution, hotels and restaurants, which contributed 0.7 percentage
points to total growth.The Index of Services increased by 0.4% in Quarter 1 (Jan to Mar) 2015 compared with
Quarter 4 (Oct to Dec) 2014.

Bilateral Relations
India and UK enjoy a multifarious relationship based on shared histories. India and the United Kingdom
upgraded their bilateral relationship to that of Strategic Partnership in September 2004. The visit of Prime

Confederation of Indian Industry

Minister Cameron to India in 2010 laid the foundation for Enhanced Partnership for the Future, which is defined
by a high level economic and technological cooperation and close coordination on regional and global issues.
The two sides have had a number of high level bilateral visits and interactions in the recent past. PM Cameron
visited India in 2010, February 2013 and November 2013. PM met UKPM Cameron on the sidelines of G20
Summit in November 2014 in Australia; EAM visited UK from October 16-17, 2014 to inaugurate the Regional
Pravasi Bharatiya Divas where she had bilateral meetings with UK Deputy Prime Minister and Foreign
Secretary; MoS (VK) visited London from December 3-4, 2014 to attend London Conference on Afghanistan;
CIM visited London from January 18-20, 2015 for the 10th JETCO.
From the UK side, Deputy Prime Minister Nick Clegg visited India from August 25-27, 2014; former UK Foreign
Secretary William Hague, accompanied by Chancellor of the Exchequer George Osborne, former Minister for
Government Policy in Cabinet Office, Oliver Letwin and Head of Downing Street Policy Unit Jo Johnson visited
Indian in July 2014; Greg Clark, UK Minister for Universities and Cities visited India from November 12-14,
2014.
Foreign Office Consultations are held annually between the two sides at the level of Foreign Secretary Permanent Under Secretary. These regular consultations have ensured an expeditious implementation of the
decisions reached at highest levels.

Merchandise Trade
UK is among Indias major trading partners. UK is listed 19th among the top 25 trading partners of India as in
2015. Two-way merchandise trade during 2013-14 stood at US$15.82 billion, marking an increase of 6.16% as
compared to 2012-13. The growth in trade is reflective of the efforts being made to enhance bilateral trade
between India and the UK. Indias merchandise exports to UK grew by about 13.54% from US$ 8.61 billion in
2012-13 to US$ 9.77 billion in 2013-14 and imports from UK declined by 3.94% from US$ 6.29 billion in 201213 to US$ 6.04 billion in 2013-14. UKs share in Indias global trade has also been improved from 1.88% in
2012-13 to 2.07% in 2013-14.

Indias main exports to the UK are garments and textiles, machinery and instruments, petroleum products,
footwear and leather, manufactures of metals, gems and jewellery, engineering goods, transport equipment
and parts, spices, drugs & pharmaceuticals and marine products. The main imports from the UK to India are
machinery and equipment, ores and metal scraps, precious and semi-precious stones, silver, metalliferous,

Confederation of Indian Industry

aircrafts and parts, beverages and spirits, machinery, engineering goods, and other professional instruments
other than electronics, non-ferrous metals and chemicals.

UK-India Trade Review (in million)

UK

UK
%

Imports

change

from

change

2010

India
4017

+36.49

India
5446

+25.86

9463

+30.16

1429

2011

5488

+36.61

5868

+7.74

11356

+20.00

+380

2012

4567

-16.78

6010

+2.41

10577

-6.85

+1443

2013

5118

+12.06

6186

+2.92

11304

+6.87

+1068

2014
Jan April

3893

-23.93

6566

+6.14

10459

-7.47

+2673

Year

to

Total

Indias

Export

change

Balance
of Trade

1385
+33.81
2122
-1.07
3507
+10.28
+737
2015
(Source: Office for National Statistics and Overseas Trade Statistics, HM Customs & Excise)

Trade and Investment Enquiries from India:

106

Trade and Investment Enquiries from UK:

02

Tenders from India:

36

India meets Britain India Tracker 2015 developed by professional services major Grant Thornton in
collaboration with Confederation of Indian Industry (CII), found that the number of Indian companies employing
people in Britain has increased by 14 per cent, from 700 in 2014 to 800 in 2015. The report says that the
success of Indian companies is fuelling the British economy through job creation and high revenues. The total
number of people in the UK employed by Indian companies has increased by 10 per cent; from 1,00,000 last
year to nearly 1,10,000. The report released by Shri Ranjan Mathai, Indian High Commissioner to the UK also
shows that the combined turnover of these businesses has increased by 3 billion in the last year, up from 19
billion in 2014 to 22billion in 2015. The true value of Indian companies doing business in the UK is highlighted
by Grant Thornton's analysis of tax contributions from Indian companies. The research shows that Indianowned companies pay combined UK corporate tax of almost half a billion pounds - but the total value of tax
contributions is considerably higher when additional taxes such as payroll and sales tax are taken into account.
The regional breakdown of the research shows that the fastest-growing Indian companies continue to be fairly

Confederation of Indian Industry

evenly spread throughout the UK. They also operate across a variety of sectors, with particular strength in
technology and telecoms, pharmaceuticals and chemicals and engineering and manufacturing.

Services Trade
According to UKs Office for National Statistics, the India-UK bilateral trade in services (excluding travel,
transport and banking) in the calendar year 2013 amounted to approx. 2.2 billion. India's exports to the UK in
services (excluding travel, transport and banking) in the calendar year 2013 amounted to 1355 million and
India's imports from the UK in services (excluding travel, transport and banking) in the calendar year 2013
amounted to 863 million.
According to the ONS, the top UK exports to India were
(i) Financial & Business services
(ii) Transportation services;
(iii) Travel services
(iv) Computer & Information services, and
(v) Communications services.
The UK is the largest market in Europe for Indian IT services. Many British blue chip companies (about 30) and
some smaller companies have off-shored work to India creating over 60,000 jobs. Conservative industry
estimates show that British businesses now save upwards of 1 billion every year due to off-shoring, the bulk
of which is accounted for by India.
Top Indian service exports to the UK include:
(i) Travel services,
(ii) Computer & Information Services
(iii) Business & Financial services
(iv) Transportation services
(v) Communication services

Bilateral Investments
UK Investments into India
UK maintained its position of being the third largest investor in India, with a cumulative equity investment of
US$ 21.79 billion (April 2000- December 2014). UK ranks first among the G20 and accounts for around 9% of

Confederation of Indian Industry

all investment into India for the period April 2000 December 2014. In 2013-14, UK invested $3.2 billion in
India, more than any other G20 country and more than Japan ($1.7 billion) and the US (just under $1billion).

Table 4: Major UK Investors in India

S No
1.
2.
3.
4.
5.
6.

UK INVESTOR
Cairn UK Holding
HSBC Bank PLC
Serco
HSBC Bank PLC
Castrol Ltd
Ecom Communications Ltd

INDIAN COLLABORATOR
Cairn India Limited
Reliance Ports and Terminals
Intelenet
Reliance Holidays and Resorts India Ltd
Castrol India Ltd
Himachal Futuristic Communications Ltd.

7.

HOC Group Plc

BOC(I) Ltd.

8.

Standard Chartered Bank

9.
10.

ENI (UK) Holdings Plc

JP Morgan International

Standard Chartered Investment and

Loans Ltd.
Hindustan Oil Exploration Company Ltd.
JP Morgan Security Pvt Ltd

Source- DIPP, Ministry of Commerce and Industry

Top sectors attracting FDI inflows from U.K. are services (both financial and non-financial), oil and natural gas,
ports, roads & highways, chemicals (other than fertilizers), electrical and electronic equipments including
computer software & electronics, telecommunications, etc. Prominent UK insurance companies have
operations in India. Leading British oil and gas companies, including British Gas, Shell and Cairns Energy have
expanded their operations and increased their investments in India
FDI from UK during the last 4 years
2010-11 US$ 2.7 billion
2011-12 US$ 7.8 billion
2012-13 US$ 1.0 billion
2013-14 US$ 3.2 billion
In February 2011 the UK oil giant BP singed a US$7.2billion agreement with Reliance Industries for strategic
oil and gas partnership in India. An increasing number of British companies have set up BPO operations in
India. The Standard Chartered Bank raised US$750m in IDR in June 2010 in India, the first in India by a
foreign bank. The Wellcome Group of Sir Mark Walport has entered into a Joint Venture with the Department of
Biotechnology called R&D for Affordable Healthcare in India with a total investment of US$45million, of which
50% will be the contribution of the Wellcome Group.

Confederation of Indian Industry

Indian Investments into UK

India continues to be one of the largest investors in the UK. According to the figures released by the UK Trade
and Investment in their 2013/14 Inward Investment Annual Report India had 74 FDI projects in the United
Kingdom which created 4,482 jobs during 2013-14, 89 FDI projects which created 7,255 jobs during 2012-13.
According to UNCTAD, the value of Indian FDI Flows into the UK was US$ 552 million in the year 2012, an
increase of 50% from previous year (US$ 368 mn in 2011). The cumulative flow of Indian FDI in UK from the
year 2010 to 2012 was US$ 1.32 billion. The UK attracts more Indian investment than the rest of the EU put
together.

Investment from India increased by 65 per cent making it the UKs third largest source of FDI accounting for
over 9,000 new and safeguarded jobs. There was also evidence of a strengthening relationship with China with
112 projects, including 13 from Hong Kong, in 2014/15 resulting in almost 6,000 new and safeguarded jobs.
According to a recent report by Grant Thornton in collaboration with CII, there are over 700 Indian-owned
businesses in the UK, employing more than 100,000 people. The top 41 fastest-growing Indian companies in
the UK generate some 19 billion of turnover although this figure is dominated by Tata Motors, which
accounts for more than 80% of the total.
According to the report, investing in the UK gives Indian companies direct access to the UK
market for their products and services, where traditionally they may have relied on distributors. Some look to
the UK as a springboard into Europe as they seek to go global to de-risk their businesses and reduce reliance
on a stuttering domestic market. Still others have been attracted by the ability to acquire iconic UK brands,
such as Typhoo, Jaguar Land
Rover or fashion retailer East. Indian investors can gain access to leading edge technology, know-how and
research, as evidenced for example by automotive giant Mahindras recent investment in a research and
development centre in collaboration with Ricardo in the UK.
The London Stock Exchange now has about 70 Indian companies listed. Tata Steel Limited, one of the top
steel producing firms in the world, was listed in the London Stock Exchange in July 2009. Essar Energy, one of
India's fastest growing private sector power and oil & gas companies, raised 1.2 billion (about US$1.8 billion)
by floating shares in April 2010. Sahara. Indias cquisition of the prestigious Grosvenor House Hotel, Park
Lane, London fo470mn (US$726mn) from the Royal Bank of Scotland was another major acquisition.

Confederation of Indian Industry

An Indian take over which drew much public attention was that of the Blackburn Rovers Football Club by the
Venkys Hatcheries Limited, the first investment in the British Premier League by India. In August 2011 the
Essar Energy bought the Stanlow oil refinery, the 2nd largest refinery in the UK for US$350 million. The East
India Company is now owned by an Indian. The TVS Group acquired the UK-based Universal Components in
March 2012 and re-branded its existing supply chain solutions in Europe into TVS Supply Chain Solutions. In
2013, India's largest software exporter Tata Consultancy Services (TCS) set up a new delivery centre in
Liverpool, strengthening its presence in the UK.

Table 4: Major Indian Investments in the UK

S No

Indian Investor

Sectors of Operation
Automobile, Steel, Chemicals,

1.

Tata Group

2.
3.
4.

ICICI Bank Limited

United Spirits Limited
Bennett Coleman and Company

5.

Suzlon Energy

6.

HCL Technologies Ltd

7.

Havells India Limited

8.

Sahara India

9.

Hindalco Industries Limited

10.

Essar Energy

Communications
Banking
Spirits and Beverages
Advertising
Investment holding and sale of Wind
Turbines
IT and Software Services
Lighting products
manufacturing and sale
Acquisition of the Grosvenor House Hotel,
London
Aluminium products and investment
holding
Acquisition of Stanlow oil refinery, 2nd
largest refinery in the UK

Source: UKTI

Indians second biggest job creators in London in 2015: Data

Indians have become the second biggest job creators in London in 2015. Latest data released by London and
Partners on May 19, 2015 showed that Indian companies have already created 504 new jobs this year in
London alone - second only to the Americans who created 1983 jobs. China which is investing heavily in UK
created only 277 jobs so far this year. The number of jobs being created by Indian companies for Londoners
has been increasing with every passing year. In 2012, India created 404 jobs in London followed by 429 in

Confederation of Indian Industry

2013 and 438 in 2014. As far as new companies are concerned, 28 new Indian companies set up shop in
London in 2015 - four higher than the Chinese and second only to America. Global giants like Pfizer,
Greenland Group and Tata Elxsi have all expanded or created new headquarters in London.

Prospects and Opportunities

Opportunities for UK Companies in Water Sector in India
UK businesses are increasingly choosing to become a part of Indias growth story. Indias big market of middleclass consumers is predicted to multiply tenfold over the next 15 years, creating a huge opportunity for UK
companies. Surge in demand for infrastructure, technology, education, consumer goods, media and services
will provide a plethora of opportunities for British companies.
India is rapidly trying to cover a huge infrastructure deficit. The sector in India offers business opportunity of
over US$ 1 trillion, which also comprises significant capital and expertise from overseas. The sector provides
opportunities for British companies in areas such as Urban Mobility, Civil Aviation, Water and Waster Water
Management and Roads and Highways.
Water, waste water management and solid waste management can be explored for partnerships between
India and UK. UK has substantial experience in the sector, especially water management and treatment.

CII and UK
2015

CII in partnership with the British Deputy High Commission, Chandigarh, UK India Business
Council, and Confederation of British Industry, organized a session on UK-Making it in India on
16 January, 2015 during Partnership Summit in Jaipur.

CII Annual CEOs Delegation to the United Kingdom visited London from 8-10 July 2015. The
Delegation was led by Mr Sumit Mazumder, President, Confederation of Indian Industry and Chairman
& Managing Director, Tractors India Private Limited. The delegation attended the CII-CBI India

Confederation of Indian Industry

Conference on The Future of India-UK Economic Relations and also met with members of the UK
Government and Industry.
2014

CII organized a luncheon session with Rt Hon Dr Vince Cable, Secretary of State for Business,
Innovation and Skills and President of the Board of Trade, Government of UK and Sir Michael Rake,
President, Confederation of British Industry, on 11 October 2014.

Select senior members of CII led by Mr Sumit Mazumder, President-Designate, met the Rt Hon Nick
Clegg, MP, Deputy PM of UK on 25 August 2014

CII Annual CEOs Mission to the United Kingdom visited London from 21-22 July 2014. The Delegation
was led by Mr Ajay S Shriram, President, Confederation of Indian Industry and Chairman & Senior
Managing Director, DCM Shriram Limited. The delegation met with members of the UK Government
and Industry to discuss strategies for improving collaborations between India and UK in various sectors.

CII organized a small closed door interactive session with Rt Hon Oliver Letwin, Minister for
Government Policy and Rt Hon Gregory Barker, Minister of State for Energy & Climate Change and
Minister for Business Engagement with India, Government of the United Kingdom, on 08 July 2014
during visit to India.

2013

CII organized an Interactive Session with RT Hon Danny Alexander, Chief Secretary of Her Majestys
Treasury-UK during his visit to India on 30 October 2013.

CII CEOs Annual delegation to UK, led by Mr S Gopalakrishnan, President, CII and Executive Vice
Chairman, Infosys Limited was in UK for four days 9-12 June 2013, covering London and
Loughborough in midlands. The delegation met with Senior UK Ministers and members of Her
Majestys official opposition to discuss bilateral trade and investment strategies, and with UK industry
and university R&D centers to discuss wide ranging areas of business partnerships.

Rt Hon David Cameron, Honble Prime Minister of UK visited India from 18-20 February 2013
accompanied by the largest business delegation to India from Britain and a significant political
delegation. On his three day tour to India, he visited the cities of Mumbai, Delhi and Amritsar.

Confederation of Indian Industry

Coinciding with the visit of Rt Hon David Cameron to New Delhi, CII in collaboration with the British
High Commission and other business associations organised a Business Conference for the Business
delegation accompanying Prime Minister Cameron on 19 October 2013.
On 18 February 2013 he met with leading Indian industrialists over an informal roundtable meeting in
Mumbai.
2012

During the visit of Mr Boris Johnson, Mayor of London to India, Mr Adi Godrej, President, CII hosted a
Networking reception on 30 November 2012 at Mumbai.

CII in partnership with CBC organized the 2nd India Infrastructure Forum, CBC-CII Forum on India-UK
Partnerships in Infrastructure on 5 November 2012 at Hotel St James Crowne Plaza, London. Mr
Kamal Nath, Honble Minister for Urban Development and Parliamentary Affairs, Government of India
was the Chief Guest at the Forum.

CII-Eastern Region mounted a Business Delegation to UK from the 18-19 October 2012 led by Mr
Ramakrishna Agrawal, Chairman, Confederation of Indian Industry, Eastern Region and Partner,
Assurance Services, Business Head, S R Batliboi & Co.

CII in collaboration with the High Commission of India organized the 3rd Annual India UK SME
Business Meet on 27 September 2012 at Cardiff, United Kingdom. CII mounted a business delegation
from 26-28 September 2012 to participate in the Business Meet. The delegation also meetings at
Bristol on 26 September 2012.

CII mounted the annual CEOs Mission to UK from 28-29 June 2012, led by Mr Adi Godrej, President,
CII. The delegation attended the CII-CBI India Conference on India-UK Partnership in Reviving and
Restoring Economic Growth and also met with members of the UK Government and Industry.

CII mounted a delegation to UK to participate at the JETCO organized on 16 April 2012 led by Mr Deep
Kapuria, Indian-Co-Chair of the Joint Working Group on Advanced Manufacturing Group of JETCO and
Chairman, Hi-Tech Gears Limited.
The Joint Working Group made a report back to Mr Anand Sharma, Minister of Commerce, Industry
and Textiles, Government of India and Dr Vice Cable, Secretary of State for Business Innovation and

Confederation of Indian Industry

Skills, UK on the important areas identified for collaboration in Manufacturing to take Indian-UK
relations to the next level.

CII mounted a 10 member defense and homeland security delegation coinciding with the UKIBC
Networking Summit being organised in Manchester on 14 March 2012 led by Mr Deep Kapuria,
Chairman, Hi-Tech Gears Limited.

Post Show Report 2015

At the 3rd Edition of Water India , 3.2 Billion of Business was Negotiated. This makes
Water India the most preferred show in the region.
Once again around 5200 trade visitors took part in Indias most preferred trade show
,and again this year exhibitors made particular mention of the professional quality
among the visitors.

Confederation of Indian Industry

Glimpse of Water India

Confederation of Indian Industry

 Confederation of Indian Industry

 Confederation of Indian Industry

 Confederation of Indian Industry

 Confederation of Indian Industry

 Confederation of Indian Industry

About CII
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to
the development of India, partnering industry, Government, and civil society, through advisory and
consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a
proactive role in India's development process. Founded in 1895, India's premier business association
has over 7200 members, from the private as well as public sectors, including SMEs and MNCs, and
an indirect membership of over 100,000 enterprises from around 242 national and regional sectoral
industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with thought
leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a
range of specialized services and strategic global linkages. It also provides a platform for consensusbuilding and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate
citizenship programmes. Partnerships with civil society organizations carry forward corporate
initiatives for integrated and inclusive development across diverse domains including affirmative
action, healthcare, education, livelihood, diversity management, skill development, empowerment of
women, and water, to name a few.
The CII theme of Accelerating Growth, Creating Employment for 2014-15 aims to strengthen a
growth process that meets the aspirations of todays India. During the year, CII will specially focus on
economic growth, education, skill development, manufacturing, investments, ease of doing business,
export competitiveness, legal and regulatory architecture, labour law reforms and entrepreneurship as
growth enablers.
With 64 offices, including 9 Centres of Excellence, in India, and 7 overseas offices in Australia, China,
Egypt, France, Singapore, UK, and USA, as well as institutional partnerships with 312 counterpart
organizations in 106 countries, CII serves as a reference point for Indian industry and the
international business community.

Confederation of Indian Industry