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  • NEWSLETTER, INDIA, Singapore

Strategic Collaborations between India and Singapore to Shape Global Transformation

India and Singapore are well-poised to drive a new era of global transformation. With increased sustainability, equity, and opportunity, the two Asian countries offer tremendous business potential to rapidly expanding firms. Singapore President Tharman Shanmugaratnam pointed out this lucrative commercial prospect during his speech at the 20th anniversary of the ISAS (Institute of South Asian Studies) at the National University of Singapore. He stated that although there’s a global trend of re-emerging industrial policies among major economies, both India and Singapore have the agency and capability to shape a stable and prosperous future.

Naturally, forward-thinking businesses will be looking for company formation in India and Singapore to capitalize on the growth potential.

A Shift in Global Economic Policies

Shanmugaratnam pointed out a significant resurgence of industrial policies like subsidies and tax breaks strengthened specific domestic industries. These policies resemble the ones formulated in the 1960s and 70s, and are making a comeback at a significant rate. The IMF states that in 2023, there were as many as 2,500 such interventions. Among these, two-thirds were designed to domestic interests over foreign competition.

However, such actions were not necessarily based on fresh evidence or a comprehensively evaluated reassessment of economic prosperity. Rather, they were based on competitive and reactive impulses among nations.

India and Southeast Asia: Strategic Middle Powers

Shanmugaratnam also pointed out that India and Southeast Asia are responsible middle powers. They have the potential to collaborate with nations sharing a similar mentality to reinforce multilateralism. Although multilateralism isn’t free from flaws, it has been crucial in restoring global stability. It has benefitted countries across various economic spectrums for decades.

President Shanmugaratnam also outlined how neither India nor Singapore is entangled in the major geopolitical conflicts, which gives a unique advantage to both the nations. He highlighted that the majority of the populations in these regions are optimistic about their future. This is a rare sentiment in today’s world. With over a quarter of the global population and 15% of the world’s GDP, India and Southeast Asia are also the fastest-growing regions globally. This positions them as crucial players in the upcoming decade.

Strategic Recommendations for the Future

Shanmugaratnam offered three key recommendations to help businesses explore the global landscape and capitalize on emerging opportunities.
  • Focusing on domestic capabilities: Rather than engaging in protectionist policies, he stated that countries should invest in developing their own capacities. Innovation, driven by a competitive environment, continues to be the fundamental driver of long-term economic growth.
  • Collaboration across sectors: Organizations often find developing individual potential and upgrading skills to be a complex task. It requires close cooperation between governments, businesses, unions, community organizations, and educational institutions. Therefore, these efforts should be supported by inclusivity to maintain political consensus for open and fair economic policies.
  • Building global coalitions: India and Southeast Asia need to work with other responsible partners to tackle global challenges. For instance, the transition to sustainable energy calls for collective efforts. In this way, the region can shape a more stable and prosperous global future.

Strengthening Bilateral Relations

Shanmugaratnam expressed optimism about the future of bilateral relations between Singapore and India. He appreciated the leadership of the Indian Prime Minister Narendra Modi, stating that his recent electoral victory reflects the positive impact of his policies on the lives of millions of Indians. As India continues to grow under the same leadership, it will strengthen and deepen the bilateral ties between Singapore and India.

Professional Assistance to Form a Company in Singapore

At a time when the world is witnessing economic uncertainty with shifting global policies, India and Southeast Asia have the potential to lead by example. These two countries need to focus on innovation, collaboration, and strategic partnerships to secure their own national interests as well as contribute to a more equitable and sustainable global business ecosystem.

Emerging brands looking to expand overseas are seeking professional advisory services from the IMC Group during their company formation in Singapore. With experts guiding these entities on the right track, businesses can quickly capitalize on the tremendous commercial potential in Singapore.

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Driving Business Expansion in India Through M&A
  • NEWSLETTER, INDIA

Driving Business Expansion in India Through M&A

India’s financial services sector is ripe with growth opportunities through Mergers and Acquisitions (M&A). With a solid economic foundation, favourable demographics, and rapid digital advancements, the Indian market is becoming increasingly attractive to investors. In particular, sectors such as insurance, mutual funds, credit, and wealth management remain relatively untapped, offering businesses a lucrative avenue for expansion.

Key Drivers of M&A in India

Several key factors are driving the surge in M&A activities within India’s financial services sector:
  • Adjacent Market Acquisitions: Financial institutions strategically acquire businesses in related markets to enhance their capabilities and capitalize on cross-selling opportunities.
  • Foreign Investments: Companies are increasingly exploring foreign investments to gain access to advanced technologies, boost capital, and adhere to global best practices.
  • Regulatory and Profitability Pressures: The evolving regulatory landscape, combined with a strong focus on profitability, necessitates business consolidation and restructuring efforts.

Sector-Specific Trends to Watch in 2024

As we look towards 2024, several sector-specific trends are expected to shape the M&A landscape in India:
  • Credit Sector: India's vast economy presents a significant opportunity for debt expansion. Banks and fintech firms are increasingly collaborating to adopt co-lending models, while Non-Banking Financial Companies (NBFCs) continue to consolidate to meet the growing demand for credit.
  • Insurance Sector: Global insurers are entering joint ventures with Indian companies to enhance distribution and operational capabilities. Noteworthy transactions include Zurich Insurance Group acquiring a stake in Kotak Mahindra Bank's insurance arm.
  • Asset and Wealth Management: M&A activity thrives as new entrants and established players aim to expand their market shares. Joint ventures like the partnership between Invesco and Hinduja Group highlight the sector's growth potential.

Emerging Trends in M&A

Several emerging trends are capturing the attention of investors and companies alike:
  • Restructuring: Financial services companies are divesting non-core assets and non-performing loans to strengthen their balance sheets. While stable asset appraisals and better capitalization have reduced the immediate need for such deals, restructuring remains a crucial strategy.
  • Environmental, Social, and Governance (ESG): ESG criteria increasingly influence investment decisions. Geopolitical tensions have heightened awareness of ESG risks, leading some investors to reassess their strategies.
  • Technology and Digital Transformation: Digitalization and artificial intelligence (AI) remain top priorities for financial services companies. In the coming months, M&A activities will likely focus on leveraging data, improving operational efficiency, accelerating transactions, and enhancing cybersecurity.
  • Private Equity: Specialized private equity investors target sectors like fintech, brokerage, and regtech. As leverage constraints and higher capital costs become more prominent, the focus gradually shifts towards value creation.

Conclusion

India’s financial services sector presents a dynamic landscape for M&A activities driven by economic growth, technological innovation, and evolving regulatory frameworks. IMC stands at the forefront of these developments, offering expert advisory services to help businesses navigate the complexities of M&A in India. Whether through restructuring, digital transformation, or tapping into new markets, IMC is poised to support your M&A journey, ensuring you capitalize on the lucrative opportunities.

Visit IMC M&A Advisory Services for more insights on how IMC can assist with Mergers and Acquisitions in India.

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Shift from CSR to ESG in Corporate India
  • NEWSLETTER, INDIA

Shift from CSR to ESG in Corporate India

For entities operating beyond the borders, it’s imperative to understand evolving corporate law in international business avenues. In the corporate business landscape in India, there’s a visible shift from CSR (Corporate Social Responsibilities) to ESG (Environmental, Social, and Governance) in recent years. This shift in paradigm redefines the way businesses operate in the country, besides reshaping regulatory frameworks and standards of accountability.

In this edition, let’s have a comprehensive look into the relationship between corporate law and the sustainability revolution in the country. Foreign companies investing in India presently find themselves at a crossroads as the focus shifts to ESG globally. To make room for new norms, corporate law in India is undergoing a profound transformation. This explains why companies need to fulfil their reporting obligations amidst the growing influence of shareholder activism.

Why is ESG a Cornerstone of Corporate Responsibility?

ESG has proven to be a key progression in corporate sustainability. These standards serve as a parameter to evaluate the commitment of a company to stakeholder engagement, protecting the environment, and effective governance. ESG standards ensure compliance with ethical business practices and enable investors to evaluate companies before investing in them.

Foreign companies operating in India need to understand that establishing and maintaining a comprehensive ESG framework involves certain initial costs. However, this returns a substantial benefit in the long run. Experts recommend against neglecting ESG factors since they can prove detrimental to the finances, reputation, and legal standing of firms expanding to India.

The Shift from CSR to ESG for Better Corporate Accountability

ESG practices in India define a departure from the traditional shareholder-centric approach that CSR initiatives carry. Unlike CSR, ESG comes up with a more holistic focus on all stakeholders. This marks a significant shift in corporate strategies.

Let’s understand this transition based on three key aspects.

1. Evidence-based Accountability

CSR initiatives are often based on marketing narratives and anecdotal evidence. On the other hand, ESG presents a new era of accountability backed by quantifiable metrics. Transparency and specificity in evaluating the performance of a company enhance the credibility of its efforts to maintain sustainability. This significantly addresses concerns of ‘greenwashing’.

2. Integrated Approach to Management

While CSR initiatives present a fragmented nature, ESG issues remain interconnected inherently. Environmental, social, and governance aspects often intersect and require a cohesive approach to management that involves the entire leadership team and board of directors.

3. Strategic Importance

Traditionally, CSR initiatives were often justified by their potential to reduce operational costs. On the other hand, ESG is a strategic approach that enhances performance and opens up new opportunities for growth. Goal-oriented companies with strong ESG profiles can outperform their peers. This demonstrates the strategic importance of integrating ESG.

Best Practices for Corporate Compliance with ESG Regulations

For corporations, it’s imperative to embrace the best ESG principles as they try to consolidate their footprint in India. Here, we have outlined the key steps to realize this goal.

Establishing ESG Committees

Specialized board-level committees go a long way in driving ESG integration within organizations. Establishing such a committee will help corporate entities create, implement, and monitor ESG initiatives, establish goals, ensure compliance, and monitor progress.

Evaluating ESG Risks

For any business, it’s crucial to identify and mitigate ESG risks. Businesses must carry out comprehensive risk assessments to identify risks, evaluate their impact, and come up with effective strategies for mitigation customized to the unique context of the organization.

Engaging Stakeholders

Effective ESG compliance requires an active engagement with stakeholders. Businesses should seek feedback and involve diverse stakeholders in their decision-making processes to boost transparency, trust, and accountability.

Compliance Requirements and Best Practices

With the ESG landscape evolving rapidly in India, businesses need to meet specific compliance requirements. Here’s an overview of the best practices to meet compliance requirements.
1. Mandatory CSR Spending
Companies that meet the necessary criteria are advised to allocate a part of their profits towards CSR activities. This demonstrates their commitment to social and environmental responsibility.
2. ESG Reporting
For top-listed companies, it’s imperative to publish Business Responsibility Reports to disclose their ESG performance as per the disclosure framework of SEBI. This will take them a step forward to promote accountability and transparency.
3. Adhering to Global Frameworks
Corporate firms must align ESG reporting with globally recognized frameworks like the Global Reporting Initiative (GRI). Besides boosting credibility, this facilitates global benchmarking.
It’s time to Pioneer Sustainable Corporate Practices

International brands striving to integrate themselves into the thriving corporate environment in India should adhere to the best ESG practices, respecting the standard regulations in the respective industries. This approach not only streamlines their path to contribute to a more sustainable future but also positions themselves for long-term success and gains the trust of stakeholders.

The IMC Group continues to be one of the most trusted global ESG Consulting firms. The professionals have been collaborating with foreign corporate firms expanding to India over the years, offering comprehensive assistance to ensure ESG compliance.

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Strengthening Indo-Singapore Bilateral Relations to Boost Trade
  • NEWSLETTER, INDIA, Singapore

Strengthening Indo-Singapore Bilateral Relations to Boost Trade

Singapore continues to be one of the sought-after international business destinations, attracting investments from all around the globe. In this edition, let’s take a look into the recent stride towards fostering robust trade ties and investments between the Indian government and Singapore.

Led by the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), Rajesh Kumar Singh, the delegation was involved in a series of discussions and strategic engagements to strengthen bilateral cooperation.

The visit, which commenced on Monday, witnessed key government officials from India engaging in high-level dialogues with their Singaporean counterparts. This established the groundwork for better collaboration and investment inflows. The delegation was actively involved in investor roundtables, showcasing the vibrant economic landscape of India along with investment avenues across various industry verticals.

India-Singapore Trade Roundtable was one of the noteworthy events, focussing on the Food and Machinery Sector. It was jointly organized by the High Commission of India in Singapore and the Federation of Indian Chambers of Commerce & Industry (FICCI) in collaboration with the Singapore Business Federation. Besides facilitating dialogue, the involved parties discussed scopes of joint ventures, strategic partnerships between businesses in India and Singapore, and the transfer of technologies.

The primary objective of the delegation was to cordially invite investors and motivate them to explore the extensive investment potential in India. This is likely to mature into stronger trade relations between the two nations.

Discussions between Rajesh Kumar Singh and Beh Swan Gim, Singapore’s Trade and Industry Ministry Permanent Secretary revealed the mutual commitment to deepen cooperation across different sectors, thereby demonstrating the importance of bilateral ties.

The delegation also actively participated in Investors roundtable discussions focusing on Renewable Energy and Electronics and Semiconductors that were organized by Enterprise Singapore and Invest India. A session of constructive dialogues followed between the leaders representing both countries as they explored viable avenues to intensify investment collaborations. Thus, the potential for strategic ventures between Singapore and India is on the cards.

Currently, Singapore stands in the 8th position among the largest trade partners of India. In 2022-23, bilateral trade between these two countries reached a mammoth $35.59 billion. This marked a commendable growth of 18% over the previous fiscal year, as pointed out by the Indian High Commission in Singapore. The positive growth trajectory highlights the strong potential for further expansion and deepening of economic engagements between the two Asian countries.

With these developments, Singaporean entities would be looking for company formation in India and capitalize on the opportunities. The IMC Group continues to be a trusted partner for company formation for global businesses expanding across borders, offering professional counselling and assistance.

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IMF Calls India’s Digital Transformation a Blueprint for Developing Nations
  • NEWSLETTER, INDIA

IMF Calls India’s Digital Transformation a Blueprint for Developing Nations

India’s digital prowess is a global inspiration! The International Monetary Fund (IMF) confirms India’s “world-class digital public infrastructure” as a blueprint for digital transformation worldwide. In a recent working paper, the IMF praises India’s innovative approach and focus on building blocks, making its digital journey a resounding success.

“Build smart: Find the core, solve more!” – In India’s diverse land, the building block approach unlocks custom solutions with essential tools.

“Boosting India’s digital ecosystem with competition and compatibility! Open standards power the India Stack, enabling anyone to leverage its functions.”

India’s guiding principles in education and healthcare have transcended to other domains, like the ground breaking CoWIN platform for COVID-19 vaccination. Thanks to its digitally-driven approach, India effortlessly surged ahead in the race to administer vaccines, defying daunting hurdles such as mass-scale internal migration.

CoWIN’s innovative technology has been implemented in various countries like Indonesia, the Philippines, Sri Lanka, and Jamaica, enabling them to streamline their vaccination initiatives.

India realized IT’s pivotal role in shaping its identity layer. Earlier, numerous identity cards and databases existed, but none had the potential to serve over a billion citizens. Enter Aadhaar – the game-changer.

The government brought in a tech-savvy entrepreneur as the founder chairman to craft the ID system and empowered UIDAI to recruit top-skilled professionals for the project.

India’s digital revolution thrives on innovation! Its building block approach unlocks multiple solutions per block, while a vibrant ecosystem fosters competition and tailors solutions to local needs.

India Stack’s design sparks competition, breaks silos, and overcomes barriers to empower innovation and progress.

In a tweet, Louis E. Breuer, IMF’s Senior Resident Representative in India, commended India’s digital public infrastructure, citing its transformative impact on people’s lives. The paper concludes that other countries undergoing digital transformation can learn from India’s journey.

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India Australia Economic Cooperation and Trade Agreement will Greatly Benefit Indian Businesses
  • NEWSLETTER, INDIA

India Australia Economic Cooperation and Trade Agreement will Greatly Benefit Indian Businesses: Says Indian Minister of Commerce and Industries Piyush Goyal

The India-Australia Economic Cooperation and Trade Agreement (ECTA) will kick off on December 29, 2022, after nine months the two sides signed a deal and will almost double the bilateral commerce to USD 45-50 billion over the next five years.

This ECTA is a win-win partnership agreement and besides, promoting bilateral relations between the two countries will attract many Australian businesses for company formation in India.

“The (Anthony) Albanese government welcomes confirmation today that the Indian Government has completed its domestic requirements to enable implementation of the Australia-India Economic Cooperation and Trade Agreement (ECTA),” Australian Minister for Trade and Tourism Don Farrell noted in a statement on Wednesday, November 30, 2022.

“This trade agreement will deliver new market access opportunities for Australian businesses and consumers from 29 December 2022,” the official statement added.

The pact, which was first agreed upon on April 2, 2022, would result in duty-free access to Indian exporters of more than 6,000 broad categories of products, primarily from the labor-intensive sectors including textiles and apparel, leather and footwear, furniture, sports goods, jewelry, many engineering products and machinery in the Australian market.

These labor-intensive sectors stand to gain immensely and also include a few agricultural and fish products and electrical goods.

Under the ECTA, Australia will provide zero-duty access to India for about 96.4% of exports, in value terms, from the first day covering several products that attract 4-5% of customs duty in Australia presently.

The Indian goods exported to Australia were valued at USD 8.3 billion and goods imported from Australia were USD 16.75 billion in 2021-22.

Once the ECTA was approved by the Australian parliament, Union Minister of Commerce and Industry Piyush Goyal said that the initial size of bilateral trade between India-Australia can reach a whooping figure, almost USD 45-50 billion in the next 5-6 years.

In a press briefing, Goyal highlighted, “Initial size of bilateral trade between India-Australia Economic Cooperation Trade Agreement (IndAus ECTA) can go up to around USD 45-50 billion in the next 5-6 years.”

Piyush Goyal noted, “It is a landmark moment for Australia and India, would like to congratulate the PMs of India and Australia for achieving this significant milestone today. These are 2 democracies with shared interests on the world stage.”

During the conference, Goyal confirmed that this is the first time in “Australian history” that the country is providing duty-free import on 100% of items. He also said that this is the first Trade Pact with a developed nation after a decade.

Referring to the relationship enjoyed between Indian Prime Minister Narendra Modi and the Australian government, Goyal termed it a “strong bond” and emphasized that this ECTA is a big recognition for India and its growing status and capabilities that the businesses offer to the world both in goods and services.

“The textile sector will benefit. Gem and jewelry sector are also excited as they will be able to sell their high-value jewelry in Australia,” the minister highlighted.

“The wine industry has welcomed this trade. The Indian wine industry will grow. The Indian wine industry would be able to export Indian wine to Australia,” he noted.

He also said that with the India-Australia ECTA now in place, the pharmaceutical industry will also be promoted as medicines have already undergone a stringent and rigorous approval process from the USA. The UK will also have a fast-track mechanism to get regulatory approval in Australia.

This trade agreement will deepen the economic ties between the two countries and provide Indian market access opportunities for Australian businesses and how to register private limited companies in India.

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India Has Been Aggressively Pursuing Free Trade Agreements with Other ASEAN Nations
  • NEWSLETTER, INDIA

India Has Been Aggressively Pursuing Free Trade Agreements with Other ASEAN Nations

Free Trade agreements (FTAs) are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate trade restrictions including customs tariff and/or non-tariff barriers, import quotas, and export limits on substantial trade between them.

FTAs, normally cover trade in goods such as agricultural or industrial products or trade in services including banking, construction, trading etc. FTAs can also cover other areas such as intellectual property rights (IPRs), investment, government procurement etc.

India has been aggressively pursuing FTAs with other countries to promote international trade relations and has so far signed thirteen FTAs.

The Comprehensive Economic Cooperation Agreement (CEPA) with the Association of Southeast Asian Nations (ASEAN) has long been in focus for India as the two regions share similar cultural and religious traditions besides proximity and booming markets.

The Framework Agreement on CEPA between the ASEAN and India was signed in October 2003 and established a legal basis to conclude other agreements, including Trade in Goods Agreement, Trade in Services Agreement, and Investment Agreement forming the ASEAN-Indian Free Trade Area (AIFTA).

During 2021-22, the value of merchandise trade between India and ASEAN countries stood at a whopping 110.40 billion SGD and mainly due to a few key agreements that boosted India-ASEAN trade relations including FTAs with Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam for goods, services and investment.

The ASEAN-India Trade in Goods Agreement (AITIGA) was signed and enforced on 1 January 2010. Under this Agreement, ASEAN Member States and India agreed to open their respective markets by progressively reducing and eliminating duties on 76.4% coverage of goods and reducing tariffs on over 90% of goods.

The last decade witnessed a significant surge in merchandise trade between the ASEAN and India primarily due to this AITIGA with exports rising by 23% and imports soaring by 55%. Rising imports have been mainly from Cambodia, Singapore, and Vietnam. As the balance of trade is very crucial in all FTAs, the two regions are putting in continuous discussions to ensure the same.

India concluded a Comprehensive Economic Cooperation Agreement (CECA) with Singapore in 2005 and since then, there has been a remarkable increase in bilateral trade between the two countries.

Amongst the ASEAN nations, Singapore is India’s largest trade and investment partner and accounted for 27.3% of India’s overall trade with ASEAN in 2021-22. Singapore is also the leading source of Foreign Direct Investment into India and accounted for almost 136.653 billion INR over the last 20 years totaling around 23% of the total FDI inflows.

Concession in tariff for an additional 30 products has also been agreed upon between India and Singapore for ensuring a balance of trade with the liberalized rule of origin for exports, rationalized product-specific rules, and provisions on Certificate of Origin.

India-Malaysia Comprehensive Economic Cooperation Agreement (MICECA) was reached in 2011 and included concessions and reductions in tariffs for trading certain goods, services, investments, and movement of natural persons.

Both India and Malaysia strongly upheld the spirit of MICECA even during the Covid pandemic and maintained their strong bilateral trade relations with a 26% increase in trade during 2021 between the two nations.

While Malaysian exports soared by 5.9 billion SGD, Indian exports rose by 3.12 billion SGD during this period. Import duty reduction by India also benefited Malaysian companies dealing with palm oil and palm oil products.

India Thailand Early Harvest Scheme (EHS) was signed in 2006 as an initial phase of FTA to identify and include specific products for tariff reduction during the ongoing negotiations for a trade pact. With EHS in place, India and Thailand moved ahead confidently and 82 products including fruits, processed food, gems and jewellery, iron and steel, auto parts and electronic goods were identified for tariff liberalization.

The ASEAN and India are both mature and growing economies and trade & investment ties between these two trade blocs will promote international businesses in a big way.

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Family Offices in India are Increasingly Exploring Direct Startup Investment Opportunities
  • NEWSLETTER, INDIA

Family Offices in India are Increasingly Exploring Direct Startup Investment Opportunities

Over the past 3 years, India has witnessed a proliferation of Family Offices with a five-fold jump in the numbers crossing over 200 from a meagre 40.

Family offices are privately held wealth management advisory firms responsible for managing, growing and preserving the wealth of an ultra-rich family and transferring family assets across generations. While a single-family office manages the wealth of one family, a multi-family office handles the wealth of multiple wealthy families. Today, family offices are the fastest-growing investment vehicles across the world and are playing a crucial role in the revival of a country’s economy.

Not so long ago, the majority of Indian family offices preferred to invest in start-ups indirectly by investing their money in venture capital (VC) or private equity (PE) funds or through a limited partnership. However, there has been a visible shift in this trend since 2019 when family offices, grown professionally with higher skills and expertise, are increasingly seen investing in startups via direct stake holding or co-investing with VC/PE funds.

The emerging trend of Indian family offices with soaring participation in direct private investments in the market can be attributed to several reasons including high returns, exposure to innovation and technology, diversification, involvement of younger family members, and value additions. It also made sense for family offices to acquire smaller businesses that can be scaled up more easily without much interference from the founders.

While choosing startups for direct private investments, Indian family offices are mainly focused on professional management, high growth and consistent compounding opportunities and the presence of a strong business moat.

A portfolio survey of family offices revealed that almost half of their investments are made through direct startup and the remaining through VC/PE and debt fund routes. Survey also showed that Indian family offices mostly chose to invest in a startup either during the early seed stage or just before the IPO issuance.

With new tech-savvy members joining Indian family offices, startups are seen as lucrative and viable asset classes offering myriad business opportunities with high-risk adjusted returns. The huge returns recently accrued through startup investments during 2021 also raised the confidence of family offices.

India today has the world’s third largest startup community just after the USA and China and the Indian startups are now exploring fundraising opportunities through Indian family offices.

Though investment in startups involves high risk, it also offers incredibly high returns on investments that can never be realized through the traditional investment classes. The fast-evolving Indian startup ecosystem is attracting more and more family office investment and seeing some famous and large names including Narayana Murthy’s Catamaran Ventures, Ratan Tata’s RNT Associates, Azim Premji’s Premji Invest amongst many others.

In a recent forecast on family office funding in Indian startups, nearly 30% of the total USD 100 billion of startup funding by the year 2025 has been predicted.

Fundraising through family offices can offer an added advantage to the Indian startups compared to VC funding as investments made by family offices, as opposed to VC investments, are not done for any fixed investment cycle and can greatly relieve startup founders of any undue financial stress. Secondly, the investment made by VC involves public knowledge whereas family office investments offer confidentiality and discretion.

There are also several other benefits of being associated with family offices including access to the network of wealthy and high-net-worth individuals, industry expertise and knowledge that are vital and often decide the success and failure of a new business startup.

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Indian PM Narendra Modi Proposes ‘Japan Week’ To Enhance Investment and Trade
  • NEWSLETTER, INDIA

Indian PM Narendra Modi Proposes ‘Japan Week’ To Enhance Investment and Trade

Indian Prime Minister Narendra Modi has welcomed greater participation and increased investments from the leading Japanese business establishments in India’s manufacturing, textiles and technology sectors and invited them to become a party to India’s journey of being a global business hub in the coming years through company formation in India.

During his visit to Japan, the PM proposed celebrating Japan’s contribution to India’s development in the form of a ‘Japan Week’ on Monday 23rd May 2022.

The PM, on day one of his two-day visits, met the Chief Executives of leading Japanese multinational companies. He also held a meeting with the CEO of the Japanese multinational clothing brand Fast Retailing, the parent company of Uniqlo headquartered in Tokyo, Mr. Tadashi Yanai to explore investment opportunities for the retailer in textile manufacturing facilities in India.

The PM discussed with Mr. Tadashi about the growing presence of Uniqlo in India and briefed him on huge investment opportunities for textile manufacturing in the country under the recently launched Production Linked Incentive (PLI) Scheme.

Mr. Yanai Tadashi spoke highly of Indian IT talents and in general, appreciated the entrepreneurship acumen of Indian businessmen. PM Modi urged the business leader of the retail behemoth to participate in the PM-MITRA scheme that is solely focused on strengthening the textiles sector. Both of them also discussed ways of doing business in India and making investments in the production and retail sectors of India.

The Indian PM also appraised Mr. Yanai on various reforms being undertaken by his government to facilitate ease of doing business for foreign investors by simplifying taxation and labour laws.

A meeting was also held with the Chairperson of Nippon Electric Company ((NEC), Dr Nobuhiro Endo in Tokyo and during this meeting, PM Modi appreciated NEC’s role in India’s telecommunication sector and discussed future business opportunities in emerging innovative technologies in India including smart cities. Mr. Endo also shed light on an innovative effort to encourage learning of the Japanese language in India.

The Indian PM appraised the NCC chairperson on tremendous business and growth opportunities in different areas including FinTech, infra and logistics networks and online digital learning.

PM Modi also met SoftBank founder, Mr. Masayoshi Son who spoke about the rapid economic growth of India in recent times due to the huge surge in Indian startups and unicorns. Mr. Son noted that the future of India looked bright and praised the Indian Prime Minister for remaining committed to the country’s success with all-out government support for startups and innovative emerging technologies.

The Indian community in Tokyo greeted PM Modi with a warm welcome as he arrived there for the Quad Summit. The Indian PM on his arrival in Tokyo, praised the Indian community for its trailblazing contributions in many areas positively transforming human lives across the globe. Mr. Modi also noted that the Indian diaspora in Japan has also maintained and nurtured its roots in India.

The Indian Prime Minister, in an opposite editorial page titled ‘India Japan: A Partnership for Peace, Stability and Prosperity, of a leading Japanese newspaper, wrote that India and Japan would contribute toward building an inclusive, open and free Indo-Pacific region, connected by secure seas, integrated by trade and investment, defined by respect for sovereignty and territorial integrity and anchored in international law. Mr. Modi in his writing also affirmed increased defence ties between the two countries spanning exercises and information sharing to defence manufacturing.

The Indo-Pacific Economic Framework event in Tokyo was attended by Prime Minister Narendra Modi, US President Joe Biden, Japanese PM Fumio Kishida and US Secretary of State Antony Blinken.  During his speech at the event, PM Modi added that India would work for an inclusive and flexible Indo-Pacific Economic Framework. Mr. Modi while delivering his speech highlighted Trust, Transparency and Timeliness as fundamentals to achieve this objective.

Recent developments in economic ties between the two countries including India-Japan Industrial Competitiveness Partnership (IJICP) and Clean Energy Partnership among others were also emphasized by the Indian PM. He also discussed other initiatives such as the semiconductor policy, National Infrastructure Pipeline etc. taken by his government. The ambitious Japanese investment target worth 5 trillion Yen made during PM Kishida’s visit to India in March 2022 also came up during Mr. Modi’s discussions.

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