London Stock Exchange has proved a popular choice for investors keen to participate in the India growth story, writes a keen observer of the trend.

Despite macro economic uncertainty, London Stock Exchange Group is showing itself to be the ideal partner to India, as Prime Minister Modi embarks on his ambitious plans to revolutionise the country’s economy and infrastructure.

Rana Kapoor, the CEO of Yes Bank, talks ‘India Investment Journal’ through his company’s recent tie-up with Santander UK, the impact of demonetisation and the gains in store for the banking sector with GST.

What is the thinking behind the tie-up with Santander UK?

The UK-India corridor is a high priority corridor for us. The fact is that India is the fastest growing economy in the world today and quite naturally the opportunities between India and the UK are getting catalysed. Especially, SMEs [small and medium enterprises] need cross-border partners and banks are the channel that can help open new markets for them. Santander and Yes Bank are looking at providing a collaborative platform to help SMEs penetrate new geographies.

The introduction of GST has passed of smoothly and the economy looks set to enter a higher growth trajectory once the initial teething troubles are sorted out.

At the stroke of the midnight hour on the intervening night of June 30 and July 1, while the world slept, much of India was wide awake, watching President Pranab Mukherjee and Prime Minister Narendra Modi formally launch the much awaited Goods and Services Tax (GST).



At the stroke of the midnight hour, India was transformed – from 29 discrete markets each with its own labyrinthine tax laws to one common market.

India’s ambitious renewable energy targets will help the country pick up some of the slack created by Donald Trump pulling the US out of the Paris climate accord.

Early June, the world was in shock. President Donald Trump of the US announced that he was pulling out of the Paris climate pact. The news wasn’t entirely unexpected, but the US withdrawal still raised question marks about the world’s ability to meet the goal of capping the rise in global temperature to 2 degrees Celsius by the end of end of this century.

Sunil Misra, as Director-General of the Indian Electrical and Electronics Manufacturers Association (IEEMA), has an inside track on the country’s renewables challenge. He speaks to ‘India Investment Journal’ on what gives India an edge in this sector and how the 175GW target for renewable electricity generation by 2022 is on course.

What are the main factors behind a surge in India’s electrical industry sector?

India has seen significant and continued growth in its GDP and per capita income. There has been a substantial increase in in middle class and also aspirations of people, giving rise to consumption.

This enhanced consumption requires strengthening of the Transmission and Distribution network, which the country is undertaking with full vigour through its recent initiatives in coal and renewable sector. The government has also increased its spending on rural electrification in parallel schemes with IPDS (Integrated Power Development Scheme) and DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana), which has further spurred the demand of electrical equipment in India.

Once the darling of investors, Maharashtra seemed to have lost its way in the middle but is now charging forward again.

In mid 2015 when a delegation from Taiwanese contract manufacturer Foxconn was scouting for a suitable destination for investments in India and South East Asia, the western state of Maharashtra was not even in their initial list of considerations. States such as Gujarat that has a reputation as being most friendly for business, Karnataka that has an established Information and Technology hub, and Andhra Pradesh which is rebuilding and aggressively wooing potential investors with sops after Telangana was carved out of it, were the first stops. Also in contention were countries like Indonesia and Malaysia that also have a reputation for being investment friendly and share greater cultural linkages with the Chinese firm.

China’s clumsy attempts to cramp India’s strategic space are holding back its ties with India.


The popular mood in India, it will be fair to say, is not very favourable towards China at the moment. A daily barrage of blunt official statements and highly jingoistic media reports from the Middle Kingdom warning India of dire consequences – even war – and reminding Indians of the military humiliation it faced in the 1962 border conflict between the two countries is largely to blame for this downturn in the public perception about China.

Prime Minister Narendra Modi’s programme to make India a major global manufacturing hub is likely to start showing results when the $68-billion of investments committed on the ground start coming on stream over the next couple of years.

Critics complain that the glass is half empty. The Prime Minister’s Make in India initiative has not led to any increase in the share of manufacturing in the country’s GDP and has not generated the huge number of jobs it was expected to.


But that, pardon the pun, is only half the picture. Experts point out that the manufacturing sector begins to contribute to the economy only with a lag of three-four years and point to the pipeline of about $68 billion of foreign investment, much of it in the manufacturing sector, to argue that a better way of describing the glass would be as half full.

The new Goods and Services Tax (GST) will help neutralise the centrifugal forces in the Indian economy, writes a policy expert.



The historical project of transforming India from a conglomeration of sub-national identities and interests to a modern nation state began with our Independence. The assimilation of more than 500 princely states, which had been rather ingeniously given the choice by the departing British colonial administration to either secede or join the Indian Union was the first major step in this direction. That process of creating a unified, coherent and efficiently working nation state has been given another hefty push by the implementation of the Goods and Services Tax (GST) from 1 July 2017.

The Strategic Partnership Policy (SPP) could throw open deals worth over $20bn to six selected private sector companies in India.

India’s defence forces will get their first fighter jets, submarines, helicopters and armoured vehicles made in India by the private sector within a few years. And it is entirely probable that friendly foreign countries could also be using some of these Made in India weapon systems.