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CAN INDIA’S OUTSOURCING INDUSTRY SURVIVE MARS ATTACK?
(READ: TRUMP ATTACK)
TRUMP’S ASCENSION TO AMERICA’S PRIME CORNER OFFICE HAS SHAKEN UP THE WORLD OF FOREIGN TRADE. HE HAS PUT PROTECTIONISM AT THE FOREFRONT OF HIS TRADE POLICY AND HIS VIEWS ON THE H-1B VISA AND OUTSOURCING HAVE GOT INDIA’S SERVICES EXPORTERS WORRIED! HOW WILL HIS NEW POLICY STANCE IMPACT INDIA’S OUTSOURCING INDUSTRY?
Vol.4
Issue 02
February 2017
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$2
Videophones Securing Homes
Imports are riding the real estate wave
Agarbatti
Fragrant Demand
Quality is driving exports
Policy Focus
Budget Expectations
A wish list from exporters
Volume: 4 Issue: 02 February 2017 www.thedollarbusiness.com facebook.com/tdbIndia twitter.com/TheDollarBiz in.linkedin.com/in/thedollarbusiness/
EDITORIAL & RESEARCH Editor Executive Editor Associate Editor (Print) Associate Editor (Online) Senior Editor (Print) Assistant Editors (Print) Assistant Editor (Online) Principal Correspondent Correspondent
: Steven Philip Warner
: Manish K. Pandey : Indranil Das : Andres Meren Molier : Sheela Mamidenna : Niladri S. Nath : Neha Dewan, Ahmad Shariq Khan, Sairaj Iyer, Manishika Miglani, Anishaa Kumar : Aamir Hussain Kaki : Deepak Kumar : Sneha Gilada
22 COVER STORY
NINA VASKUNLAHTI
ADVERTISEMENT SALES & MARKETING Deputy General Manager : Roosevelt Fernandes Deputy Manager : Aishwarya Singh Senior Executives : Ayesha Fatima, Ankit Kharbanda : Justin Yoon (+82-2-6241-4256) : S. Puri (+44 207 376 1996)
ART & PHOTOGRAPHY Art Director Senior Designer Designer Photographer
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CIRCULATION, SUBSCRIPTION & DISTRIBUTION General Manager : S. S. Sudesh Manager (Subscriptions) : M. Vinay Kumar Assistant Managers : Sanjeev Jain, Buddhi Sagar Pandey, Rajneesh Laroiya
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© Copyright 2017 No part of this magazine may be reproduced in whole or in part without an expressed permission of the publisher. The information on this magazine is for information purpose only. Manish K. Pandey, Editor, The Dollar Business, is responsible for the selection of news and content under PRB Act. Vimbri Media Pvt. Ltd. assumes no liability or responsibility for any inaccurate, delayed or incomplete information, or for any actions taken in reliance thereon. The information contained about each individual, event or organisation has been provided by such individual, event organisers or organisation without verification by us. All disputes are subject to exclusive jurisdiction of competent courts and forums in Hyderabad, Telangana. Printed and published by Avnish Goyal for Vimbri Media Pvt. Ltd. Published at 5-2-198/4, Distillery Road, Ranigunj, Secunderabad - 500 003, Telangana. Printed at: Kala Jyothi Process Pvt. Ltd., 1-1-60/5, RTC Cross Roads, Musheerabad, Hyderabad - 500 020, Telangana. FOR EDITORIAL/CONTENT Email: editorial@thedollarbusiness.com FOR ADVERTISEMENT Email: ads@thedollarbusiness.com FOR SUBSCRIPTION Email: subscription@thedollarbusiness.com . +91-40-67609999 For queries / comments you can send us an SMS at +91-888-633-1947
6 THE DOLLAR BUSINESS II FEBRUARY 2017
KALRAJ MISHRA
UNION MINISTER FOR MSMEs On enhancing the sustainability and competitiveness of the MSME sector
PRATYUSH KUMAR
THE DOLLAR BUSINESS ONLINE Project Managers : Sridhar Bodla, Omar Larzi Digital Marketing Manager : Mohammed Imran SEO Specialist : Praveen Kukunarapu Deputy Manager (EXIM Opp.): Lakshmi Kondaveeti Asst. Manager (EXIM Opp.) : G Bhanu Prasad Asst. Managers (Data & Metrics) : Sharath Chandra Murthy Macha, Santosh Hale, Ramesh Babu Lalam, Mohd Abdul Nadeem
ALLIANCES & COMMUNICATIONS Sr. Manager : Rasanpreet Kaur Deputy Manager : Anupama Polasa Asst. Managers : Sravya Palakuru, Asmita Mitra
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AMBASSADOR OF FINLAND TO INDIA Speaks about the current state of Finland-India trade & investment ties and the way forward
EDITORIAL CONSULTING BOARD Founder & Editor : Anil Goyal Publisher : Avnish Goyal Chief Consulting Editor : Dr. A. K. Sengupta
International Representatives Seoul (South Korea) London (UK)
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CAN INDIA’S OUTSOURCING INDUSTRY SURVIVE THE TRUMP ATTACK?
Donald Trump’s ascension to the Presidency of the United States of America has shaken up the world of trade. His inauguration speech emphasised “Buy American. Hire American”. And his stance on H-1B visas and outsourcing has made India’s IT majors sit up. Is India’s outsourcing industry primed to withstand the rogue wave that is about to hit it?
INBOX
LETTERS TO THE EDITOR
PRESIDENT, BOEING INDIA On how manufacturers in India can leverage growth opportunities in the aerospace sector
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Readers’ feedback, criticism and appreciation that hit our mailbox in January 2017
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MONOLOGUE PEOPLE SPEAK
Trump on US policy, Jim Yong Kim on global economic growth, PM Modi on GIFT City & more
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16
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GLOBAL TRADE
From UK-Ireland trade deals and China’s new rail route to London to Korea’s imports of eggs & more
INDIA TRADE
From India’s GDP growth to the India-Uruguay customs agreement & much more
72
RAKESH KUMAR BHATNAGAR
DIRECTOR GENERAL, TEPC Talks about the issues plaguing the industry & the outlook for the sector
70
FACE2FACE
76
IMPORT’ONOMICS
82
SECRET INGREDIENT
86
KRISHNAR BHUPAL, DIRECTOR, GVK POWER & INFRA Talks about developing airports in India and abroad
VIDEOPHONES Importers enjoy enormous profits while riding the real estate wave
AGARBATTI India is the largest exporter of agarbattis in the world. But what makes this business so lucrative?
CASE STUDY
TORERO CORPORATION A fascinating story of a manufacturing start-up that is creating a new niche in leather accessories
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THE MIDAS TOUCH
MOUNTED BRAKE LININGS Can India become the global manufacturing hub for this auto component?
POLICY FOCUS
UNION BUDGET 2017 What exporters expect from the Finance Minister in the Budget 2017
DOCKYARD
ICD NAGPUR Will mending its iffy past help ICD Nagpur realise its true potential?
TDB FORUM
Questions about foreign trade that hit our mail box in January 2017
DATEBOOK
Some must-visit trade shows
FEBRUARY 2017 II THE DOLLAR BUSINESS 7
Cover Photo by Gage Skidmore. Licensed under CC BY 2.0
President (VMPL) & Editor-in-Chief
COVER STORY
INDIA'S OUTSOURCING INDUSTRY: AN UNCERTAIN FUTURE?
CAN INDIA'S OUTSOURCING INDUSTRY SURVIVE THE TRUMP ATTACK? Uncertainty has descended upon the $150-billion Indian outsourcing industry in anticipation of the protectionist regime under President Trump. Protectionism has been a popular election rhetoric across nations, and more so in recent times. And the voting masses seem to like it. Will Trump’s campaign cry for protectionism cross the boundaries of poetic drama and come alive as laws? There is no doubt that US being the largest consumer nation in the world, governments across the globe will keep a close watch on Trump’s policies. India will be no exception. The hot-button topic for India – ‘outsourcing’, has surfaced again and the impact of Trump’s announcements, be it restrictions on H-1B visas or penal taxes on US companies for outsourcing jobs, is being felt already in India. And this, coming during times when India's outsourcing industry has been experiencing a rough patch isn't an encouraging development. How hard will an avalanche of protectionist measures from the Trump regime hit India's outsourcing industry? BY NEHA DEWAN AND AHMAD SHARIQ KHAN 22 THE DOLLAR BUSINESS II FEBRUARY 2017
FEBRUARY 2017 II THE DOLLAR BUSINESS 23