update – september 2016
TRANSCRIPT
September 2016 | Vol V | Issue 2AmCham - The Voice of American Business in India
• AmCham-GIPCIPRInteractiveSessiononIndia'sNationalIPRStrategy-AViewFromGlobalInnovators
• LuncheonSessionwithAmbassadorRobertHolleyman,DeputyU.S.TradeRepresentative
• FarewellforU.S.ConsulGeneralMichaelMullins
• InteractiveSessionon“ForeignDirectInvestment–TakingtheAgendaForward”
• InteractiveBreakfastSessionon"TheWestBengalTransportPolicyandInvestmentOpportunity"
• “TaxTransparencyAhoy!”writtenbyVikasVasalChairman,AmChamTax,Tariff&RegulatoryCommitteeandPartner,Tax,KPMG
HIGHLIGHTS
AmCham
Update
Ms.MeenuChandra,Chair–AmChamIPRCommitteeandSeniorAttorney,CorporateLegalandExternalAffairs,Microsoft
Mr.AtulDhawan,HonoraryTreasurer,AmChamandRegionalManagingPartner,Deloitte,withMr.RameshAbhishek,Secretary,DIPP
25
23
12
Contents06
AmChamandGIPC InteractiveSessionon India’sNational IPRPolicy –AViewFromGlobalInnovators
12Interactive Session on “Foreign DirectInvestment – Taking the AgendaForward”
18Interactive Session on InvestmentOpportunitiesinWestBengal
20TaxTransparencyAhoy!”writtenbyVikasVasal Chairman, AmCham Tax, Tariff &RegulatoryCommitteeandPartner,Tax,KPMG
23Farewell for Consul General MichaelMullins
25
28
Interactive Session with AmbassadorRobert Holleyman, Deputy U.S. TradeRepresentative
Breakfast Meeting on ‘Make inIndia: CEOs Speak on the BusinessEnvironmentinIndia’
18
06
AmCham
Update
4
EventsAmCham
Issue 2September 2016
Office Bearers
Chairman
Mr. Pratyush Kumar
President
Boeing India
Vice Chairmen
Mr. Richard Rekhy
Chief Executive Officer
KPMG in India
Mr. Gulshan Kumar Sachdev
Managing Director
Quaker Chemical India Limited
Hon. Secretary & Treasurer
Mr. Atul Dhawan
Regional Managing Partner
Deloitte Touche Tohmatsu India LLP
Board Members
Ms. Rekha M. Menon
Chairman
Accenture India
Mr. Varun Khanna
Managing Director
Becton Dickinson India Pvt. Ltd.
Mr. Venkatesh Kini
President & CEO – India and South West Asia
Coca-Cola India Pvt. Ltd.
Mr. Arun Kumar Jain
Managing Director
Fluor Daniel India Pvt. Ltd.
Mr. Kaher Kazem
President and Managing Director
General Motors India Pvt. Ltd.
Mr. Nick Mitchell
Managing Director
Phenomenex India Pvt. Ltd.
Mr. Krish Iyer
President and CEO
Wal-Mart India Pvt. Ltd.
Dr. Kiranmai Pendyala
CVP HR Greater Asia
AMD R&D Center India Pvt. Ltd.
Mr. Madan Mohan Rao Yalamanchili
Executive Chairman
S&P Capital IQ (India) Pvt. Ltd.
NATIONAL EXECUTIVE BOARD 2016-17
Wecongratulatethecentralandstategovernmentsof IndiaonGST.This isafarreachingreformthatwillaccelerateIndia’seconomicgrowthandinvestmentincludingfromtheU.S.ReachingconsensusonGST,amongallthestatesandthecentralgovernment,istrulyunprecedentedandremarkable.
TobetterunderstandtheimplicationsofthenewNationalIPRPolicy,weheldapaneldiscussionwithacademicandgovernmentexperts,aswellas industryrepresentatives. In his keynote address Mr. Rajiv Aggarwal, Joint Secretary,DIPP,Governmentof India,elaboratedonthetremendousstrides inreducingthe timelines regarding patents and trademark filings and emphasized thegovernment’s duty to recognize innovation and IP. Panelists highlighted theabilityofstrongIPprotectionstodrive innovationandtheneedforanaction-orientedapproachtowardsthepolicy.Discussionrevolvedaroundthehitsandmisses in the National IPR policy and on the effective implementation for asynchronizationbetweenpracticeandpolicy.
AmChamhadanopportunitytointeractwithAmbassadorHolleyman,DeputyU.S.TradeRepresentative,whoemphasizedUSTR’ssingularfocusofcreatingastronger,unifiedtraderelationshipbetweentheU.S.andIndia.Asaprecursorto the upcoming 10thU.S. – India Trade Policy Forum (TPF)whichwill takeplaceinNewDelhiinOctober,thediscussionfocusedonthedigitaleconomy,manufacturingandagriculture.Healsomentionedthe“Digital2Dozen,”alistofprinciplesembodiedintheTransPacificPartnership(TPP).TheTPPincludescutting-edge obligations that are designed to promote the digital economythroughafreeandopeninternetandcommercewithoutborders.
InitiativesbytheGovernmentofIndia,suchasthe“MakeinIndia”campaign,have already started bearing results.While growth and investments in someof thecoresectors remainamatterof concern, theeconomy isexpected todo better inmonths to come. Similarly, “Start-Up India” will supplement thegovernment’seffortstoencouragemanufacturinginIndia.TheprogramsprovideglobalrecognitiontotheIndianeconomy,facilitateinvestmentandbuildbest-in-classmanufacturinginfrastructure.ItemphasizestheneedforproductioninIndia,eitherbyIndiancompaniesorMNCs.Themanufacturingcommitteemetanddiscussedthewayforward,potentialstate-wiseengagement,knowledgesharingforbestpractices,industrychallenges(suchaslaborlaws,supplychain,BIS,etc.)andhowtobestshowcaseAmericancompaniesthat“MakeinIndia.”
We also hosted U.S. speaker Juan Sabater who addressed members onbusiness opportunities and investment climate in fostering start-ups andboostinginvestmentforU.S.companies.
As thechanges inFDIstart tostirup the Indianeconomy,weconductedaninteractivesessionon“ForeignDirectInvestment-TakingtheAgendaForward”in association with BBG, EBG and knowledge partners Deloitte and KPMG.
Chairman’s Message
AmCham
Update
5
EventsAmCham
Issue 2September 2016
NATIONAL EXECUTIVE BOARD 2016-17
The keynote address was delivered by Mr. Ramesh Abhishek, Secretary,DIPP in the inaugural session, which also included a theme presentation byMr.RichardRekhy,ViceChairman,AmChamandCEOKPMG.Mr.AtulDhawan,HonoraryTreasurer,AmChamandRegionalManagingPartner,Deloitte,inhiswelcome address, spoke about the significance of viable eco-systems thatinspireinvestors’confidenceandpromoteeaseofdoingbusinessforexistingandpotentialforeigninvestors.Thetwopaneldiscussionscoveredtheoveralldevelopmentsandrecentrelaxationsinsectorsofaviation,defense,retailandmanufacturing.Mr. IshtiyaqueAhmed,Director,DIPP,andMr.DeepakBagla,ManagingDirector&CEO,InvestIndia,talkedaboutthegovernmentinitiativesandpolicychanges,andalsointeractedwithparticipantsonthechallengesandwayforward.
Mr.AlapanBandyopadhyay,IAS,PrincipalSecretary,DepartmentofTransport,ViceChairman,NabadigantaIndustrialTownshipAuthority&ManagingDirector,West Bengal Transport Infrastructure Development Corporation, outlined thestrategicimportanceofthestateofWestBengalandthecityofKolkatainthecontextofopportunitiesfortheIndianeconomyasawhole.
We had an opportunity to meet the Deputy National Security Adviser forInternationalEconomicAffairsandDeputyAssistanttoPresidentBarackObama,Mr.Adewale“Wally”Adeyemo,alongwiththeSpecialAssistanttothePresidentonInternationalEconomicAffairs,Mr.HimDas.Thediscussionrevolvedaroundchallengesfacedindoingbusinessandkeyimprovementsinthepastyearwiththepresentgovernment indefense,aviation, infrastructure, investment,smartcities,etc.WediscussedhowAmericancompaniescanbemorecompetitivecomparedtolocalandthirdcountrycompetitors.Thecurrentworkforceinthecountry, theeffectivenessofU.S.- Indiaeconomicdialoguestructure,anditsimpactinadvancingU.S.industryprioritieswasalsomentioned.
ThesmartcityprogramsforthestateofMadhyaPradeshhasbeendiscussedwith the threedesignatedsmartcitiesBhopal, IndoreandJabalpur.Mr.NSNMurty,ExecutiveDirector&SmartCities LeaderatPwC,gave insighton thesmartcityvisions,thespecialpurposevehicle(SPVs),thefundingmechanismsandprivatesectorparticipationmodelsforthethreecities.Hehighlightedtheprioritydevelopmentalprojectsandproposedpan-cityinitiativesthatareundervariousrolloutstages.
Memberswereinvitedtoaninteractivesessionfocusedonrecentdevelopmentspertaining to FCPA and key case studies in these areas and what leadingmultinationalorganizationsaredoinginIndiatoaddresstheadditionalrisks.
The CSR committee has been in discussion on how to utilize the 2% CSRbudgetandtheambiguityofit.TheyaimtoaddressconcernswiththeMinistryofCorporateAffairs.WelookforwardtoourCSRphotoexhibitioninassociationwiththeU.S.Embassy,anexcellentopportunitytoshowcasethewayAmericancompaniesgivebacktoIndia.
TheHyderabadChapterbidfarewelltoConsulGeneralMichaelMullinsforhiscommitmenttoU.S.-IndiarelationsandsupporttoAmCham.
AsIwritethismessage,boththeU.S.andIndiangovernmentsaredeliberatingontheU.S.-IndiaStrategicandCommercialDialogue,whichentailsdiscussionon important issues relating to trade, innovation, entrepreneurship, doubletaxationofincome,movementoflabor,etc.
Mr. Pratyush KumarChairman, AmCham
Dr. Pradip K. Dutta
Corporate Vice President & Managing Director
Synopsys (India) Pvt. Ltd.
Mr. Iqbal Sait
Head of Asia Operations
Saggezza India Pvt. Ltd
Mr. K. P. Sengupta
Chairman
Data Core (India) Pvt. Ltd.
Mr. Rustom J. Desai
Managing Director
Corning India and Telecom Operations
Mr. Ramkumar Ramamoorthy
Senior Vice President, Marketing, Corporate Affairs and Communications
Cognizant Technology Solutions
Mr. A. Viswanathan
Dy. Managing Director
BS&B Safety Systems India Limited
Mr. Sukanti Ghosh
Managing Director, India
APCO Worldwide India Pvt. Ltd.
Ms. Kaku Nakhate
President & Country Head (India)
Bank of America N.A.
Immediate Past Chairperson
Ms. Vanitha Narayanan
Managing Director
IBM India Pvt. Ltd.
Honorary Members
Mr. John M. McCaslin
Minister Counselor for Commercial Affairs
U.S. Embassy
Mr. George N. Sibley
Minister Counselor for Economic Affairs and Environment, Science and Technology
U.S. Embassy
Special Invitee
Mr. C. R. Dua
Managing Partner
Dua Associates
AmCham
Update
6
EventsAmCham
Issue 2September 2016
DELHI
On7thJuly2016,adiversegroupofindustry,academicandgovernmentexpertsgatheredtosharetheirviewsontheprospectsoftheinnovativeenvironmentinIndiainthewakeoftheNationalIPRPolicy.ThepanellistshighlightedtheabilityofstrongIPprotectionstodriveinnovationandthe need for an action-oriented approach towards thepolicy.
AmCham and GIPC Interactive Session on India’s National IPR Policy – A View From Global Innovators
Ms.MeenuChandra,Chair –AmCham IPRCommitteeand Senior Attorney, Corporate Legal and ExternalAffairs,Microsoft,gavetheopeningremarkswhichwerefollowedwiththekeynoteaddressbyMr.RajivAggarwal,JointSecretary,DIPP,GovernmentofIndia.
Ms.SanjitKaurBatra,Co-Chair–AmChamIPRCommitteeandLegalHead–SouthAsia,E.IDuPont
Ms. Komal Kalha, Senior Counsel, U.S. Patent andTrademarkOffice(USPTO)
Mr.RajivAggarwal,JointSecretary,DIPP,GovernmentofIndia
AmCham
Update
7
EventsAmCham
Issue 2September 2016
LtoR:Dr.BrijUberoi,CEO,CropLife,Ms.KomalKalha,SeniorCounsel,U.S.PatentandTrademarkOffice(USPTO),Ms.SanjitKaurBatra,Co-Chair–AmChamIPRCommitteeandLegalHead–SouthAsia,E.IDuPont,Ms.ArchanaShankar,Partner,Anand&AnandandMr.PulakBagchi,SVP,StarIndiaPvt.Ltd.
LtoR:Ms.LohitaSujith,Director–CorporateCommunications,MPAA,Mr.NarendraSabharwal,Chair,FICCI–IPRCommittee,Ms.KalpanaReddy,SeniorDirector,GIPC,Ms.SheetalChopra, IndiaLead– IPRPolicy,Ericsson IndiaLtd.andMr.BKSahu,DeputyManager–IPR,NationalResearchDevelopmentCorporation(NRDC),MinistryofScienceandTechnology,GovernmentofIndia
Therewere twopaneldiscussions.Panellists in thefirstsessionshared theirviewson thehitsandmisses fromthe National IPR Policy. The panel was moderated byMs. Kalpana Reddy, Senior Director, GIPC and otherpanellistsincludedMs.LohitaSujith,Director–CorporateCommunications, MPAA, Ms. Sheetal Chopra, IndiaLead – IPR Policy, Ericsson India Ltd., Mr. BK Sahu,DeputyManager–IPR,NationalResearchDevelopmentCorporation(NRDC),MinistryofScienceandTechnology,GovernmentofIndiaandMr.NarendraSabharwal,Chair,FICCI–IPRCommittee,Ex.ConvenerMember,IPRPolicy
ThinkTank,GOI,FormerDeputyDirectorGeneral,WorldIntellectualPropertyOrganization.
Inthesecondsession,panellistssharedtheirviewsontheeffective implementation for a synchronisation betweenpracticeandpolicy.ThesessionwasmoderatedbyMs.SanjitKaurBatra,Co-Chair –AmCham IPRCommitteeandLegalHead–SouthAsia,E.IDuPontandtheotherpanellistsincludedMs.ArchanaShankar,Partner,Anand&Anand,Mr.PulakBagchi,SVP,StarIndiaPvt.Ltd.,Ms.KomalKalha,SeniorCounsel,U.S.PatentandTrademarkOffice(USPTO),andDr.BrijUberoi,CEO,CropLife.
AmCham
Update
8
EventsAmCham
Issue 2September 2016
Interactive Luncheon Session with Ambassador Robert Holleyman, Deputy U.S. Trade Representative
Ms.YashodharaLal,Genpact,speakingtocommitteemembers
CSR Committee Meeting
AmCham’s CSR Committee meeting took place inGurgaon on 15th July under the new leadership ofMr.HarishKrishnan,ExecutiveDirector,PublicAffairs&StrategicEngagements,India&SAARC,Cisco.
Thefollowingpointswerediscussed:
• Utilizingthis2%CSRbudget–theambiguityofit
• Addressingconcernswith theMinistryofCorporateAffairs
• ViewsonsettingupanAmChamFoundation
• Co-creationofpossibilitiestogether
The meeting began with introductions by everyonepresent.Eachpersonexplainedthevariousprojectstheywere engaged in. Potential partnership opportunitiesin each and every projectwerediscussed in detail. Aneffortwasputintounderstandingtheproject,challenges,logistics,locationconstraintsandthenconnectingpeoplethereand then if required. Itwasdecided todevelopacommunicative directory with such information for allAmCham members which will serve as an importanttoolkitfortheindustry.
DuringourNGOshowcase,Magic Bus Foundationtalkedabouttheiramazingprojectofsteeringchildrentowardsabetter lifewithbetterawareness,better lifeskills,andbetter opportunities, in the journey from childhood tolivelihood.
Mr.HarishKrishnanthankedallmembers,aswellastheMagic Bus Foundation,fortheirparticipation.
CSR Committee Members with Mr. Harish Krishnan,ChairmanCSRCommitteeandExecutiveDirector,PublicAffairs&StrategicEngagements,India&SAARC,Cisco
On25th July2016,AmChamandUSIBCco-hostedaninteractivesessionwithAmbassadorRobertHolleyman,Deputy U.S. Trade Representative, at ACSA, U.S.Embassy, New Delhi. The USTR team also includedDawnShackleford,Deputy AssistantUSTR, andConorHarrington,IPRDirector,USTR.
Ambassador Holleyman emphasized USTR’s singularfocus of creating a stronger, unified trade relationshipbetween the U.S. and India. They continue to haveregular dialogueswithGOI. The upcoming 10thU.S. –India Trade Policy Forum (TPF) will take place in New
DelhiinOctober.TheteamwasintowntomeetwiththeircounterpartsattheDepartmentofCommerceandDIPPtopreparefortheTPF.Hementioned,thenewITpolicyhasbeenencouragingeventhoughthepaceofreformmaybeslower thandesired.Someof theareas focusedonforthisvisitincludedthedigitaleconomy,manufacturingand agriculture, to understand where there are pointsof friction and try to minimize it. They also mentionedpatents, tradesecrets, localsourcing requirementsandtrade facilitation. USTR has had positive engagementin the copyright sector as India has consolidated theircopyrightfunctionsintotheDIPP.
AmCham
Update
9
EventsAmCham
Issue 2September 2016
Breakfast Session with Protiviti – FCPA Face Off
The AmCham FCPA breakfast session with Protiviti, tookplaceon27thJuly,2016 inGurgaon. Thesessionbeganwithapresentationentitled“GoingBeyondtheHeadlines–DissectingrecentFCPAcasesandlearningfromthem”byVikas Mehta, Senior Manager, Forensic Services, ProtivitiIndia.Theobjectivewastoprovokeadebateonhowtobebetterequippedtohandlesucheventualities.Next,Suprabhat
NM,ManagingDirector&Leader,ForensicServices,ProtivitiIndia, spoke on “Wrestling with FCPA – Discussing thefinernuances through illustrativeexamples.”An interactivediscussionfollowedthathighlightedthepracticalchallengesaroundFCPAcompliance.ThesessionconcludedwithacalltoactionanddiscussiononthecomponentsofalocalFCPAfitnessprogram.
Ambassador Holleyman mentioned the “Digital 2Dozen,”alistofprinciplesembodiedintheTransPacificPartnership (TPP). The TPP included cutting-edgeobligationsaredesignedtopromotethedigitaleconomythroughafreeandopeninternetandcommercewithoutborders.
Someofthechallengesandopportunitieshighlightedbyparticipantswerefromthefollowingsectors:
• Agriculture
• E-commerce
• ICT
• Insurance
• IPR
• Medicaldevices
• Pharmaceuticals
ItwasmentionedthattheupcomingU.S.–IndiaStrategicandCommercialDialoguewillhaveafocusonstandards.
ParticipantsatanengagingsessiononFCPATrendsbyProtiviti
LtoR:Mr.ConorHarrington,IPRDirector,USTR,Ms.DawnShackleford, Deputy Assistant USTR, and AmbassadorRobertHolleyman
Speaker–Mr.VikasMalhotra,Protivitidiscussingacasestudyon‘Hitachi’
AmbassadorHolleymandiscussingtheTradePolicyForum
AmCham
Update
10
EventsAmCham
Issue 2September 2016
Chairman,Mr.D.P.Singh,VicePresident–HR(India/SouthAsia),IBMandCo-Chairman,Mr.SameerMathur,SeniorVicePresidentHR,CitibankwithHRCommitteemembers
HR Committee Meeting
ThesecondmeetingofAmCham’sHRCommitteewasheld on 29th July 2016 in Gurgaon at the IBM officeunder the leadership ofMr. DP Singh, Chairman – HRCommitteeandVP–HR(India/SouthAsia),IBMIndiaandMr.SameerMathur,Co-ChairandSVP–HR,Citibank.
ApresentationonAmChamandanoverviewof theHRcommitteewasmade.
Thefollowingcharterswerepresented:
• Labor Reforms – Seema Ajwani, ER/LR, CaseManagement & Appeals Leader, IBM, gave a veryinsightful presentation to the group. Seeing the
response and excitement, it was decided that thecommitteewoulddoamorethoroughsessiononthesameforothermemberstoshareknowledge.Somesubjectmatterexpertswouldbeinvitedtofacilitateit.
• FutureofWorkCharter–SarthakRaychaudhuri,HRLeader,WhirlpoolIndia,presentedthefutureofworkcharter.Therewasadiscussionwithinthecommitteeonpotentialkeyinterestareas,commonissuesandchallenges which needed to be addressed by thecharter.
Mr.Singhconcludedtheeventandthankedthecommitteemembersfortheirparticipation.
Meeting with Deputy National Security Adviser for International Economic Affairs, Mr. Adewale “Wally” Adeyemo
On 29th July, AmChammembersmetwith theDeputyNational Security Adviser for International EconomicAffairs(DNSA)andDeputyAssistanttoPresidentBarackObama, Mr. Adewale “Wally” Adeyemo, the SpecialAssistant to the President on International EconomicAffairs, Mr. Him Das, and his team comprising of theDirector, National Security Council and representativesfromtheU.S.Embassy,NewDelhi.
Members discussed the challenges faced in doing
businessandkeyimprovementsinthepastyearwiththepresent government in defense, aviation, infrastructure,investment,smartcitiesetc. Itwasalsodiscussedwhatis holding back infrastructure investment in India andhow American companies can be more competitivecompared to local and third country competitors. Thecurrent work force in the country, the effectiveness ofU.S.- Indiaeconomicdialoguestructure,and its impactinadvancingU.S.industryprioritieswasalsomentioned.
AmCham
Update
11
EventsAmCham
Issue 2September 2016
AmChammembersandU.S.EmbassyofficialswiththeDeputyNationalSecurityAdviserforInternationalEconomicAffairs(DNSA)andDeputyAssistanttoPresidentBarackObama,Mr.Adewale“Wally”Adeyemo
Manufacturing Committee Meeting
ThefirstmeetingofAmCham’sManufacturingCommitteefor the year 2016-17 under the chairmanship of Mr.Rampraveen Swaminathan, President & ManagingDirector, International Paper India Pvt. Ltd. and co-chairmanshipofMr.SanjayKoul,Chairman&ManagingDirector, Timken IndiaLimited,washeldon3rdAugustinNewDelhi.Thecommitteediscussedthewayforward
for the committee, potential state-wise engagement,knowledgesharingforbestpractices,industrychallenges(such as labor laws, supply chain, BIS, etc.) and howto best showcase American companies that “Make inIndia.”Itwasalsodecidedtoreachouttoallcommitteememberstogatherthemostcommonindustryissues.
ManufacturingCommitteemembers
AmCham
Update
12
EventsAmCham
Issue 2September 2016
KeynoteaddressbeingdeliveredbyMr.RameshAbhishek,Secretary,DIPP
Interactive Session on “Foreign Direct Investment – Taking the Agenda Forward”
On3rdAugust,aninteractivesessionwasorganizedon“ForeignDirectInvestment-TakingtheAgendaForward”in associationwithBBG,EBGandknowledgepartnersDeloitte&KPMG.ThekeynoteaddresswasdeliveredbyMr.RameshAbhishek,Secretary,DIPP in the inauguralsession,whichalsoincludedathemepresentationbyMr.RichardRekhy,ViceChairman,AmChamIndiaandCEOKPMG.Mr.AtulDhawan,HonoraryTreasurer,AmChamandRegionalManagingPartner,Deloitte,inhiswelcomeaddress, spoke about the significance of viable eco-systems that inspire investors’confidenceandpromoteease-of-doing-businessforexistingandpotentialforeigninvestors.Ms.KakuNakhate,BoardMember,AmChamIndiaandPresident&CountryHead,BankofAmerica,contributed a presentation froma banker’s perspective
covering aspects of how the country is poised formilestonegrowthtargetswhichwillhavetobepropelledbyhugespurtsofinvestmentsacrosskeyprioritysectorscomingfromwithinandoutsideofIndia.
Twopaneldiscussionsfollowedwhichcoveredtheoveralldevelopmentsandrecentrelaxationsinsectorsofaviation,defense, retail andmanufacturing.Companies such asKPMG, Deloitte, Boeing, Walmart, International Paper,TimkenandIkeawererepresentedinthesesectors.Mr.IshtiyaqueAhmed,Director,DIPP,andMr.DeepakBagla,Managing Director & CEO, Invest India, talked aboutthegovernmentinitiativesandpolicychanges,andalsointeractedwith participants on the challenges andwayforward.
AmCham
Update
13
EventsAmCham
Issue 2September 2016
Ms.MadhviKataria,DeputyExecutiveDirector,AmChamwelcomingtheguests
Audienceenthralledbythepaneldiscussion
AmCham
Update
14
EventsAmCham
Issue 2September 2016
LtoR:Mr.RohintonSidhwa,Partner, InternationalTaxation,DeloitteHaskins&SellsLLP,Mr.SanjayKoul,Co-Chairman,AmChamManufacturingCommittee;andChairmanandManagingDirector,TimkenIndiaLimited,Mr.MichaelKoch,VicePresident,BoeingIndiaDefense,Space&Security,Mr.AmberDubey,Co-Chairman,AmChamAviationCommittee;andPartnerandHead-AerospaceandDefence,KPMG,Ms.PreetDhupar,ChiefFinancialOfficer,IKEAGroupIndiaandMr.AnilTalreja,Partner,DeloitteHaskins&SellsLLP
LtoR:Mr.AmarjeetSingh,Partner,KPMG,Mr.IshtiyaqueAhmed,Director,DIPP,Mr.DeepakBagla,ManagingDirector&CEO,InvestIndia,Mr.KrishIyer,Member,AmChamNationalExecutiveBoard;andPresident&CEO,WalmartIndia,Mr.RampraveenSwaminathanChairman,AmChamManufacturingCommittee;andPresident,InternationalPaperandMr.RobertKemp,ActingMinister-Counselor,EEST(Economic,Environment,Science,&TechnologyAffairs)U.S.Embassy
Mr.RobertKemp,ActingMinister-Counselor,EEST(Economic,Environment,Science,&TechnologyAffairs),U.S.Embassy
Mr.MichaelKoch,VicePresident,BoeingIndiaDefense,Space&Security
AmCham
Update
15
EventsAmCham
Issue 2September 2016
Smart City Overview of Madhya Pradesh (Conference Call)A teleconference call was organized on 10th August withMr.NSNMurty,ExecutiveDirector&SmartCitiesLeaderatPwC, todiscussandunderstand thesmart cityprogramsfor the state of Madhya Pradesh. The focus was on thethreedesignatedsmartcitiesBhopal,IndoreandJabalpur.Mr. Murty gave a detailed walk through of the smart cityvisions, the special purpose vehicle (SPVs), the fundingmechanisms and private sector participation models for
the three cities. He highlighted the priority developmentalprojects and proposed pan-city initiatives that are undervariousrolloutstages.AlargeroutreachplanforAmChammembercompanieswitheachSPVwasdiscussedaswell.Companies thatparticipated includedHoneywell, 3M,UL,UTC, Trimble, OshKosh, Xylem, Ch2M, Louis Berger, HP,MotorolaSolutions,IngersollRandandIBM.
Meeting with Mr. Munu Mahawar, Joint Secretary (Americas), Ministry of External Affairs
Mr.PratyushKumar,Chairman,AmChamandPresident,BoeingIndia, and Ms. Madhvi Kataria, Deputy Executive Director,AmCham, called on Mr. Munu Mahawar, Joint Secretary(Americas),MinistryofExternalAffairs,on18thAugust2016in
hisofficeanddiscussedU.S.-IndiarelationsaheadoftheU.S.-IndiaStrategicandCommercialDialogue tobeheldon30thand31stAugustinNewDelhi.
AmCham – KPMG – Deloitte Conference Call on GST - Road Ahead for Industry
AmCham, along with KPMG and Deloitte, organized aconferencecallon“GST–RoadAheadforIndustry”on23rdAugust2016.Thespeakerswere:
• Mr. Vikas Vasal, Chairman AmCham’s Tax, Tariff &RegulatoryAffairsCommitteeandPartner,HeadDealAdvisory,M&ATax(North),KPMGinIndia
• Ms.NeeruAhuja,Co-ChairpersonAmCham’sTax,Tariff&RegulatoryAffairsCommitteeandPartner,BusinessTax,DeloitteHaskins&SellsLLP
• Mr. Sachin Menon, Partner & Head of Indirect Tax,KPMGinIndia
• Ms.AnjlikaChopra,SeniorDirector,DeloitteHaskins&SellsLLP
• Mr. R. Sridhar, Vice President - Taxation, HindustanCoca-ColaBeveragesPvt.Ltd.
SubjectscoveredwerethelikelydateofGSTimplementation,likely rateofGST,past credit, input credit, continuationofexportandstateincentives,valuationrules,etc.
AmCham has already made one representation on GSTtotheMinistryofFinance.Ifmoreinputsarereceivedfrommembers, another representation would be made andpresented to theMinistry of Finance and the EmpoweredCommitteeofStateFinanceMinisters.
L toR:Mr.DeepakBagla,ManagingDirector&CEO, Invest India,Mr.Krish IyerMember,AmChamNationalExecutiveBoard;andPresident & CEO, Walmart India, Mr. Rampraveen Swaminathan Chairman, AmCham Manufacturing Committee; and President,InternationalPaper
AmCham
Update
16
EventsAmCham
Issue 2September 2016
KOLKATAEastern Region Members Meeting
On 8th July 2016, AmCham Eastern Region organizedanEasternRegionmembersmeetinghostedbyMr.K.P.Sengupta, Chairman ER. The purpose of themeetingwas to explain to members the role of AmCham bothin the Eastern Region, the national level, includingthe secretariat, and the benefits that are derived frommembershipandtogetmembersviewsandopinionsonthe roadmap thatshouldbe followedby theERwhichwouldbeinlinewiththenationalagenda.
The meeting was opened by Mr. K.P. Sengupta whoexplainedtomembersthenationalagendaandthiswas
followedbyapowerpointpresentationby theRegionalDirector, Amada Kidwai, on the various aspects ofmembership.Mr.AmitMallik,amemberoftheexecutivecommittee,walkedmembersthroughallthebenefitsandhighlightedAmCham’sERroleintryingtogetinvestmentsintoWestBengalbyorganizingroadshowsattherequestof the West Bengal Government both in Delhi andBangalore.Memberspresentputforwardtheirviewsandsuggestedevents that theywouldbe interested in. Themeetingwasbought toaclosewith thanks to thechairandwasfollowedbyhightea.
Interactive Breakfast Session on “The West Bengal Transport Policy and Investment Opportunity”
Mr. Alapan Bandyopadhyay, IAS, Principal Secretary,Department of Transport, Vice Chairman, NabadigantaIndustrialTownshipAuthority&ManagingDirector,WestBengalTransportInfrastructureDevelopmentCorporation,addressedAmChamEasternRegionmembersonFriday,July 15, 2016 at The Hyatt Regency Kolkata, as chiefguest,atan interactivebreakfastsessionon“TheWestBengalTransportPolicyandInvestmentOpportunity.”
In his opening remarks Mr. Bandyopadhyay outlinedthe strategic importance of the state of West Bengaland the city of Kolkata in the context of opportunitiesfortheIndianeconomyasawhole.HepointedoutthatKolkata is the gateway to the east and is the largestcity inmanyhundredkilometers inanydirection. In thiscontext,Mr.Bandyopadhyaypointedoutthecriticalityofthetransportationsystembothwithinthecityaswellasatrans-shipmentlocation.Mr.Bandyopadhyaymentionedthat significant investments have been planned indeveloping the inland waterways and that this wouldbe transformational for the eastern region economy.Goodswouldbe transported fromupcountryalong thewaterways to markets in the east and north east andto neighboring countries. A deep sea port would bedevelopedatSagarIslandwhichwouldresultinrestoringthestrategiccommercialimportanceofKolkata.
TheinfrastructureofthecityofKolkataisbeingupgradedto address the requirements of the future. A three-
prongedpolicy in this regard has been adopted in thetransportsector:
(A)Strengtheningandupgradingservicesbeingprovidedby the state transport undertakings and continuing toenhancetheefficiencies
(B) Regulating services being provided by the privatesector
(C)Strengtheningofinfrastructurefacilities
Transportundertakingsofthestateplayapivotalroleinthesphereofpassenger transportationon roadaswellas on water transport sector through their state widenetworks. The public transport sector is essential forproviding transportservices toareascoveredbyroutesthatarenotremunerative,astheseareavoidedbyprivatetransportoperators.Thestategovernmenthas,therefore,been expanding and upgrading the state transportundertakings. Efforts have beenmade to improve theefficiencyoftheseundertakingsby improvingoperatingstandards and by strengthening the infrastructure ofthese undertakings with funds from different sources.Consequently, the state transport undertakings areadoptingcertainmeasureslike:
• Increasing the average number of buses/trams onroadsperday
• Increasingthepercentageoffleetutilizationagainstthefleetstrength
• Reducingthestaff-busratio
AmCham
Update
17
EventsAmCham
Issue 2September 2016
• Renovationofbuses
• IncreasingKMPLrate
• Utilizationofunusedorunder-usedlandandspacestoincreaserevenue
TheintroductiontothesessionwasdonebyMs.AmadaKidwai, Regional Director – Eastern Region, AmCham,Mr.JoydeepDattaGupta,AmChamECmemberdidthewelcomeremarks,Mr.GulshanSachdev,ViceChairman,AmCham, gave the concluding remarks andMs. BrittaLeick-Mildegavethevoteofthanks.
Mr.AlapanBandyopadhyay,IAS,PrincipalSecretary,DepartmentofTransport,ViceChairman,NabadigantaIndustrialTownshipAuthority&ManagingDirector,WestBengalTransportInfrastructureDevelopmentCorporation,addressingtheEasternRegionmembers
Ms.AmadaKidwai,RegionalDirector–EasternRegion,givingthewelcomeremarks
AmCham
Update
18
EventsAmCham
Issue 2September 2016
Dr.KrishnaGupta,IAS,PrincipalSecretary,Commerce&IndustryandPublicEnterprise&IndustrialReconstruction,GoWB,talkingaboutthesurpluspowerinWestBengal
Interactive Session on Investment Opportunities in West Bengal
AmCham, in association with the Government of WestBengal, organizedan interactive sessionon investmentopportunities in West Bengal on 25th July in NewDelhi. The objective of this interaction was to exploreopportunitiesand identifysolutions for transforming thestate of West Bengal into a world class business andcommercialdestination.
Ms.MadhviKataria,DeputyExecutiveDirector,AmCham,in her welcome address, said that the West BengalGovernment had undertaken a number of initiatives topromote West Bengal as an investment destination.Some of the areas where American businesses canpartner with the state ofWest Bengal are in the areasof healthcare, education, manufacturing, e-commerce,logistics,infrastructure,IT,etc.
TheGoWBwasrepresentedbyDr.KrishnaGupta, IAS,
Principal Secretary, Commerce & Industry and PublicEnterprise & Industrial Reconstruction, Mr. SurendraGupta, IAS, Managing Director, West Bengal IndustrialDevelopment Corporation (WBIDC) and Mr. KaushickSaha,WBCS,ExecutiveDirector,WestBengalIndustrialDevelopment Corporation (WBIDC). Opportunities forinvestment in the following sectors were discussed:manufacturing, IT software & hardware, urbaninfrastructure & housing, tourism and entertainment,MSME and textiles, healthcare, education and skills,energy and infrastructure, transport services, maritime,defense, gas, automobile and auto ancillaries, andpharmaceuticals.Opportunities in the six “green cities”in West Bengal were also highlighted. Dr. Gupta alsoemphasized that West Bengal was the natural hub forconnectivitytothenortheasternstatesaswellastosouthAsian countries. He highlighted that there was surplus
LtoR:Ms.MadhviKataria,DeputyExecutiveDirector,AmCham,Dr. Krishna Gupta, IAS, Principal Secretary, Commerce &Industry and Public Enterprise & Industrial Reconstruction,Mr. Amrit Kiran Singh, Mr. Debdas Sen, AmCham EasternRegionCo-ViceChairmanandCEOTCGDigital Mr.AmbrishBakaya,HewlettPackardIndia,posingaquestion
AmCham
Update
19
EventsAmCham
Issue 2September 2016
power in thestateandno labour issues in the last fiveyears resulting in no loss ofman-days in the state.HeextendedaninvitationtoallmemberstoparticipateintheBengalGlobalBusinessSummit–2017from20th-21stJanuaryinKolkata.
Mr. Debdas Sen, AmCham Eastern Region Co-ViceChairmanandCEOTCGDigital,inhisopeningremarks
sharedwithmembersTCGDigital’ssuccessstoryinthestate.Mr.JoydeepDuttaGupta,AmChamEasternRegionExecutiveCommitteeMemberandPartnerandRegionalPractice Leader Deloitte East, gave the concludingremarks and vote of thanks. He also reconfirmed theinvitationtoallmemberstoparticipateintheWestBengalGlobalSummitscheduledinJanuary2017.
Session on Business Opportunities and Investment Climate with U.S. Speaker Juan Sabater
On Thursday, 4th August, Amcham Eastern Region, inassociation with the Public Affairs section of the U.S.Consulate Kolkata, hosted U.S. speaker Juan SabaterwhoaddressedmembersonbusinessopportunitiesandinvestmentclimateinthisregionandtheroleofAmChamin fostering start-ups and boosting investment for U.S.companies. TCG – Digital hosted the session at theiroffice.
Juan Sabater is a partner at Valor Equity Partners, agrowth focused private equity firm, headquartered inChicago, Illinois. Juan is a member of the investmentcommitteeandfocusesonsourcingopportunitiesintheservices sector. Juan spoke about his interest in Indiaandexplainedhowtheglobalmodelofentrepreneurship
is changingwithmorecollaborationsandpartnerships.Hecitedexamplesofcompaniesthatoutsourceseveralareasofworkandfocusontheircoreexpertise.Hesaiditwasessential tohavesocialentrepreneurshipmodelsinIndia.
During the interactive session that followed, memberssharedtheirexperiencesofworkingwithIndianandU.S.companiesand thepartnerships involved.Someof theissues raised were angel capital and seed funding inIndia.Theyalsodiscussedhowstart-upsoftenfizzleoutin Indiadue to issuesofproperplanning,financesandgovernmentalpolices. ThesessionwaschairedbyMr.DebdasSen,CEO,TCG-DigitalandCo-ViceChairman,AmChamEasternRegion.
Mr.JuanSabater(farleft),entrepreneurshipspeakerfromtheU.S.,addressedmembersinKolkataattheTCG-Digitaloffice
AmCham
Update
20
EventsAmCham
Issue 2September 2016
Vikas Vasal Chairman,AmChamTax,Tariff&RegulatoryCommitteePartner,Tax,KPMGinIndia
Tax Transparency Ahoy!
proposed legislationbefore a smoothworkable systemevolvesinthelongrun.
TheGSTrequiresadequateinfrastructureandresolutionof several issuesbefore it is rolledout.Concerns suchas determining the tax rate for goods and services, acredit framework to functionsmoothly,categorisationofvariousgoodsandservicesintodifferenttaxratebasketsto ensure that it does not trigger an inflationary trend,the various tax andother concessionsofferedby stategovernmentsandenjoyedbybusinessesatpresentneedtobetakenintoaccounttomaintainstatusquovis-à-visthecommitmentsmadeinthepast.
Another big change underway is the re-negotiation ofDouble Taxation Avoidance Agreements (tax treaty)and signing of Tax Information Exchange Agreements.With increasing foreign investment and cross-bordertransactions in India, there have been issues on thebenefitsbeingavailedbybusinessesunderthevarioustaxtreaties,especiallyinthecaseoftaxconcessionsrelatingtocapitalgains, interest income,royaltypayments,feesfor technical services and permanent establishmentexposures.
Oneoftheimportantmovesintherecentpasthasbeena change in the India-Mauritius tax treaty regardingtaxationofcapitalgainsandinterestincome.AsbenefitsundertheIndia-Singaporetaxtreatyoncapitalgainsareco-terminuswith theMauritius treaty, it is likely that theSingaporetaxtreatymayalsobere-negotiated.Similarly,changesintheCyprustaxtreatyareunderway.
OneofthehandicapsthatIndianrevenueauthoritiesfaceinseekinginformationfromoverseastaxjurisdictions,isalso being removed gradually by India signing the TaxInformationExchangeAgreementsorincorporatingthese
GST and other changes in the tax and regulatory regime are likely to bring about a paradigm shift in the way business is done in India
Thenumberof changesbeing introduced in the Indiantax and regulatory regime are likely to change thewaybusiness isperceivedanddone in India. Addto it, theprowess of data analytics and the increasing linkagesbetween the different data points which revenueauthoritieswillhaveaccess to, is likely tobring inmoretransparency.
TheGoodsandServicesTax(GST)alsobeingreferredto as a ‘one nation, one tax’ initiative, is one of thebiggest tax reform in India, post liberalisation and thedismantlingofthelicenceregimeintheearly1990s.Freemovement of goods and services across the country,wherebusinessestakedecisionsbasedoncommercialconsiderationsratherthantaximplications,coupledwitheasieronlinecompliancescanbringinadramaticchangeinthebusinessenvironment.
Besidesotherareas,thethreekeyaspectsthatbusinessesmayhavetore-evaluateandtakenecessaryactionare,tax planning and compliances, syncing informationtechnologysystemswithGSTframework,andtuningthesupplychainmodelinlinewiththenewpolicyframeworkand thecompetitor’s strategy,without losingsiteof theoverallbusinessdynamicsandcosteffectiveness.
InadditiontocontributiontooverallGDPgrowth,GSTisexpected tousher inaneraof transparencyacross theentirevaluechain,whichatpresentgetsbrokenincertaincases therebyresulting in revenue leakages. TransitiontoGSTcanbechallengingintheinitialyears.Therefore,the government needs to adopt a soft approach tohelp businesses understand and comply with the new
AmCham
Update
21
EventsAmCham
Issue 2September 2016
clausesintaxtreatieswithdifferenttaxjurisdictionssuchastheBahamas,Bermuda,BritishVirginIslands,CaymanIslands,Liechtenstein,Liberia,etc.
The General Anti-Avoidance Rules (GAAR), to beeffectivenextyear,isanothertoolthatgiveswidepowersto the revenueauthorities to challengeany structureortransaction, if it isestablished that theprimarypurposeofsuchanarrangementwastoavoidtax.Similarly,theconceptofPlaceofEffectiveManagement(POEM)whichalso partially covers thin-capitalisation rules, is anothersteptobringinmoretransparency.
Some other initiatives such as tax deduction/collectionatsourceonpurchaseof immovablepropertyandsaleof cars above certain thresholds, mandatory quotingofPANonall transactionsofpurchaseandsaleabovecertainmonetarylimits,annualinformationreportsbeingsubmitted by financial institutions and other specifiedorganisations, are all steps in this direction to bring intransparencyandwidenthetaxnet.
Interestingly,therearesignificantchangestakingplaceattheglobalstagethathaveadirectorindirectbearingonIndianbusinesses.Postthefinancialmeltdownof2008,governmentsacrosstheglobehavebeenunderpressureto plug revenue leakages and hold people/businessesaccountable. Base Erosion and Profit Shifting (BEPS),ForeignAccountTaxComplianceAct(FATCA)andsimilarother initiatives taken globally can add to transparencyandcomplianceinIndiaaswell.
As Indiaaspires tobeoneof the top threeeconomies,it is bound to change in many aspects, including thewaybusiness isconducted.Tax transparency,certaintyandclarityare thehallmarkofanymatured tax regime.India has embarkedon this long journey. Therewill beblipsandbumps,andresistancetochangeontheway.Nevertheless,thesestepscollectivelyhavethepotentialtousherinaneweraoftaxtransparency.
The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of AmCham or KPMG in India.
AmCham
Update
22
EventsAmCham
Issue 2September 2016
HYDERABAD
AmCham organized a session on the Foreign CorruptPracticesAct(FCPA)withErnst&Youngon5thJuly2016.Thesessionwasheldat theofficeofErnst&Young iniLabs,HitechCity,Hyderabad
Mr. Sandeep Baldava, Partner – Fraud Investigation &Dispute Services, conducted an awareness sessionfor AmCham Hyderabad members. He has led manyFCPA investigations/reviews for several multinationalcompanies in multiple business sectors, includingtechnology, telecommunications, infrastructure, retail,financialservices,andlifesciences.Heisvisitingfacultyon thesubjectofwhitecollarcrimes forvarious federalandstateenforcementagenciesinIndia.
TheinteractivesessionfocusedonrecentdevelopmentspertainingtoFCPAandkeycasestudiesintheseareasandwhatleadingmultinationalorganizationsaredoinginIndiatoaddresstheadditionalrisksposedonaccountoftheserecentdevelopments.Membershadanopportunitytointeractandlearnaboutsomeleadingpracticesinthisarea.
Theglobalregulators(U.S.SECandDOJ)areincreasingtheirscrutinyforanti-briberyandFCPAnon-complianceby companies with operations in emerging marketslike India. In addition to levying penalties, seniorofficials responsible foroperationsarebeingsubject toprosecution for failure to protect non-compliance withanti-briberylaws.Recentsettlementshavereiteratedtheimportanceofimplementingrobustcomplianceprogramsby organizations. Organizations have started using
FCPA Meeting with Ernst & Young
anti-corruption data analytics extensively to proactivelyidentify red flags and strengthen detection processeswithintheiroperations.
In the recentpast, therehavebeensignificantchangespertainingtoFCPA.Afewnotablechangesinclude:
• FCPAenforcementpilotprogram
Theprincipalgoalofthisprogramistopromotegreateraccountabilityforindividualsandcompaniesthatengageincorporatecrimebymotivatingcompaniestovoluntarilyself-disclose FCPA-related misconduct, fully cooperatewiththefraudsection,and,whereappropriate,remediateflaws in their controls and compliance programs. Thisprogram commenced from 5th April 2016 and is validfor 1 year.Under this scheme, a company can receivereduction in the fines imposed by the DOJ under U.S.SentencingGuidelines
• Individual accountability for corporate wrongdoing(YatesMemo)
To be eligible for any cooperation credit, corporationsmustprovide to thedepartmentall relevant factsaboutthe individuals involved in corporate misconduct. Bothcriminal and civil corporate investigations should focuson individuals from the inception of the investigation.ThesechangesweremadebytheDOJtomaximizetheDOJ’sabilitytodetermisconductandtoholdthosewhoareaccountable.Inthecomingmonths,theDOJwillbeworking towards turning these policies into everydaypractice.
4th AmCham Healthcare Steering Committee Meetings
Thecommitteemembersmeton14thJulyattheofficeofEliGlobalIndiaandon8thAugustattheofficeofMediumConsulting todiscussandchart out the final courseofactionfortheconference.
Thememberswere informedthat thewebsitewouldbeupandrunningforregistrations.Theday-longeventwiththetheme“HarmonizationofIndianHealthcareWithinthe
GlobalEcosystem”willbebrokendowninto3sessionsnamely:
• GlobalHarmonization
• InnovationandTechnology
• SkillsandDevelopment
AmCham
Update
23
EventsAmCham
Issue 2September 2016
Dr.KiranmaiPendyala,Chairperson,HyderabadChapterandCVPHRGreaterAsia&EMEABoardMember,AMDIndia
Farewell for Consul General Michael Mullins
AmCham Hyderabad organized a farewell for MichaelMullins, Consul General, U.S. Consulate Hyderabad atWestinMindspace,Hyderabadon18thJuly2016.
Members thanked Michael for his commitment tothe upliftment of society and the strong relationshipwith AmCham. Dr. Kiranmai Pendyala, Chairperson- Hyderabad Chapter, AmCham, commenced thesessionby thankingMichael for alwaysbeingavailableand interested in what AmCham was doing. The pastChairpersonsofAmChamHyderabad,whowerepresentatthismeeting,alsospoke.
Mr.MichaelMullins,ConsulGeneral,U.S.ConsulateHyderabadwithAmChammembers
Mr.MichaelMullins,ConsulGeneral,U.S.ConsulateHyderabad
AmCham
Update
24
EventsAmCham
Issue 2September 2016
Michael thanked the Hyderabad Chapter for thecommendable work they were doing. He mentionedthathisfirsteverpubliceventonassumptionofofficeinHyderabad was the AmCham Healthcare Conferenceandhereallyappreciatedtheconference.Hewasalsothankfultothemembersfortheirsupportinstrengthening
the bilateral ties between the U.S. and India and therelationship shared with the industry partners. He wasappreciativeoftheAmChamHyderabadleadershipandwhat they were doing for the enhancement of trade inIndia.
AmCham Sports 2016 – Sports Coordinators Meeting
On29thJuly2016,theSportsCoordinators(representativesfrom AmCham members) who participate in AmChamSports 2016 event met at S&P Global to discuss thevariouseventsandtheconductofSports2016.
Thedrawsforcricketforthe22companiesparticipatinginthecricketeventwasconductedatthismeeting.
Dr.KiranmaiPendyala,Chairperson,HyderabadChapterwithMr.MichaelMullins,ConsulGeneral,U.S.ConsulateHyderabadMr.MichaelMullins,ConsulGeneral,U.S.ConsulateHyderabad
MemberslisteningtoMr.MichaelMullinsgivinghisfarewellspeech
AmCham
Update
25
EventsAmCham
Issue 2September 2016
BANGALORE
On27thJuly,AmChamhostedaninteractivesessionoverdinnerwithAmbassadorRobertHolleyman,DeputyU.S.TradeRepresentative,at theOberoiHotel inBangalore.The USTR team also included Dawn M. Shackleford,Deputy Assistant USTR, and Conor Harrington, IPRDirector, USTR, Ken W Mcbride, Political/EconomicOfficer from the American Consulate in Chennai andrepresentativesfromtheU.S.CommercialServices.
AmbassadorHolleymanemphasizedUSTR’soutlook tobreakdowntradebarriersandnegotiateprinciplestowardscreatingastronger,unifiedtraderelationshipbetweentheU.S.andIndia.Healsomentionedtheupcoming10thU.S.–IndiaAnnualTradePolicyForum(TPF)willtakeplaceinNewDelhiinOctober.HementionedthenewITpolicyhasbeenencouragingeventhoughthepaceofreformmay
On 29th July, AmCham Karnataka Chapter partneredwithDeloitteforaninteractivesessiononunderstandingthe“extendedenterprise.”Thespeakers includedSumitMakhija, Partner – Forensic Financial Advisory,Deloitte
Interactive Session with Ambassador Robert Holleyman, Deputy U.S. Trade Representative
Deloitte Session on Understanding the ‘Extended Enterprise’ Managing Third Party Corruption Risks
beslower thandesired.Someof theareas focusedonforthisvisitincludedthedigitaleconomy,manufacturing,agriculture,ITandissuesaroundthedigitaleconomytounderstandwhere therearepointsof frictionand try tominimizeit.Theyalsomentionedpatents,tradesecrets,localsourcingrequirementsandtradefacilitation.
Ambassador Holleyman mentioned the “Digital 2Dozen,”alistofprinciplesembodiedintheTransPacificPartnership (TPP). The TPP includes cutting-edgeobligations designed to promote the digital economythroughafreeandopeninternetandcommercewithoutborders. Some of the challenges and opportunitieshighlighted by participants from the ICT sector wereenumerated. The participating companies were HPE,Oracle,TexasInstrumentsandSaggezza.
IndiaandRamaPrasad,VP&MD,EsterlineIndia.
The discussion revolved around managing third partycorruptionrisksandelaboratedontheFCPAandIndianlaw.Casestudiesoutlinedtheriskexposureduetothird
MembersinconversationwithAmbassadorHolleyman,DeputyUSTR
AmCham
Update
26
EventsAmCham
Issue 2September 2016
partiesand theassociateddamages.Thesessionalsocovered creating a framework formanaging third partycorruptionrisks.
Thesecondpartof thesession featured threecomplexthirdpartyriskmanagementscenarios:
• Scenario A. An uncooperative third party refusedto answer your questions or provide requesteddocumentation
• Scenario B. The ownership structure was soconvolutedanditisimpossibletodetermineifthereisariskofagovernmenttouch-point
• Scenario C. Accounting records point to riskypaymentsincludingpotentiallyfictitiousinvoicesandvendors
ThesessionwasattendedbymemberorganizationsNike,IBM,Cisco,3M,NorthernTrust,Brookfield,Technicolor,ExxonMobilandothers.
Mr.M.K.RamaPrasad,VP&MD,EsterlineTechnologiesLtd.Mr. Samir Pranajpe, Director Financial Services, DeloitteToucheTomatsu
MUMBAI
The second meeting of AmCham’s Western RegionCommittee for the year 2016-17was held on 12th July2016 via conference call. The meeting commencedwithawelcomebyMr.MaheshKrishnamurti,Co-Chair,Western Region Committee, AmCham and ManagingDirector,ResourcesGlobalProfessionals(I)Pvt.Ltd.andMs.SurabhiWahal,RegionalDirector-WesternRegion,AmCham.
Themeeting,whichwaswellattended,washeldtosharekeyupdatesontheAmChamNEBthatwasheldinJune,makea reviewofpast events in theWR,and to ideateon forthcomingeventsandactivities for theregion.ThemeetingclosedwithMr.MaheshKrishnamurti thankingcommitteemembersfortheiractiveparticipation.
Western Region Committee Meeting
AmCham
Update
27
EventsAmCham
Issue 2September 2016
CHENNAI
TheU.S.ConsulGeneral,PhilipMin,andJohnFleming,Principal Commercial Officer, met with the Tamil NaduChapter Executive Committee on 14th June at theresidence of the Consul General. The U.S. Consulatedecided toengagemorecloselywithAmChamso thatAmCham could be a strategic partner to access thestategovernmentandChiefMinister.ItwasdecidedthatAmChamwouldidentifykeypeoplethathaveaccesstotheChiefMinisterandinvitethemtoAmChamevents.
TheConsulateandAmChamwouldalsowork jointly to
showcase the CSR activities of member companies.Itwasdiscussed thatCognizantwould take the lead inorganizingaCSRworkshopforAmChammembersandlargeMNC’s.ItwasalsodiscussedthatvisitingoverseasCEOsshouldmeetwithofficersattheConsulateandjoinmeetingswiththestategovernment.TheConsulGeneralmentioned that he would interact with the diplomaticcorps in Chennai, as a working group, to exchangeinformation and improve access to government. Lastly,FordmentionedthattheywouldlendexpertisetoassistsmallercompaniestoestablishinIndia.
Tamil Nadu Chapter Executive Committee Meeting with U.S. Consul General
Breakfast Meeting on Chennai Smart City Infrastructure
Recognizing the need for businesses to share in thetaskofmakingChennaiabetterplacetoliveandwork,AmChamorganizedameetingon17thJune,2016withMr.RajCherubal,ChiefResilienceOfficerforChennai.Over40representativesfrommembercompaniesparticipatedinthediscussion.
Mr. Raj Cherubal made a presentation on the civicconditions prevalent in Chennai and compared it withthatofseveralcitiesofsimilarareaanddemographicsinAsiaandLatinAmerica.HestatedthatClean ChennaiisaCorporationofChennaiinitiativetocatalyzeacity-wideshiftincitizens’attitudestowardssolidwaste–ownership,treatment,andmanagement.
Heengagedwithmembercompaniestoenlisttheactivesupport of all stakeholders – ragpickers, residents,commercial establishments, institutions and others– to manage waste in an ecologically, socially, andeconomicallysustainablemanner.
The simple one-linemessage he conveyed is: ‘Do notlitter.Putwastewhereitbelongs.Intherightbinsandattherighttime.’
Mr.RajCherubalexhortedAmChamcompaniestoworkwiththeClean Chennaimovementto:
• Progressinthefightagainstgarbage
• Create awareness on best waste managementpracticesinChennai
• Reducewaste–will help saveboth theplanetandmoney
• Turn organic waste into something useful – likecompost,biogas,orelectricity
• Setupabiogasfacilityoncampustofuelthecampuskitchen
• Reusewaste–donate,sellusedfurniture,furnishing,clothes,electronicsandotheraccessories
• Recyclewaste–contactcompetentrecyclers,makinglesswastegotolandfillsordumpsites
MembercompaniesexpressedtheirsupporttotheClean ChennaimovementaspartoftheirCSRcampaign.
Interactive Breakfast Meeting with Minister Counselor for Consular Affairs, Joseph M. Pomper
Today’sbusinesstravel–bothdomesticandinternationalisontheincreaseasmoreandmorebusinesstravelers
take to the skies for business meetings. In the past,international business travel was restricted to senior
AmCham
Update
28
EventsAmCham
Issue 2September 2016
managementpersonnel,butnowevenjuniorexecutiveshave international business assignments that bringgreater global mobility in the workforce. Obtaining avisahas thereforebecomea vital necessity to facilitatebusinessacrossborders.
To gain a better understanding on the adjudicationprocessattheU.S.EmbassyanditsConsulatesandtointeractwithmembersoftheglobalmobilityteamsfromvarious member companies, a breakfast meeting wasorganizedattheHiltonChennaion23rdJune.Themainguest speakers were Mr. Joseph M. Pomper, MinisterCounselor for Consular Affairs, U.S. Embassy, NewDelhiandMr.CharlesE.Luoma-Overstreet,ChiefoftheConsularSection,U.S.Consulate,Chennai.
Mr.Pomperbeganhisaddressbysayingthateconomicandpeople-to-peopletiesformakeypillarforthegrowingU.S.-India strategic partnership. Two-way trade andinvestmentbetweenthenationshavereachednewheights.Thetwolargestdemocraciescontinuetoexpandexistingcooperationandeffortsaswellaslaunchnewinitiativestobringaboutmutualeconomicprosperityaswellastocollaborate to address global challenges. He said thattheU.S.and Indiawereworkingonseveralpartnershipprograms, some of which include commercial, trade,and investment partnerships, infrastructure and smartcitiescollaboration,andsmartcitydevelopmentinAjmer,Allahabad,andVisakhapatnam.Science,technologyandhealthcooperationhavecontinuedtostrengthenalso.
Mr. Pomper recognized the growing academic andtourismlinksandsaidtheU.S.EmbassyandConsulatesin India issuedmorethan76,000studentvisas in2015.Indianstudentsaccountedforthesecond-largestgroup
offoreignstudentsintheUnitedStatesinthe2014-2015schoolyear,withthenumberofstudentsfromIndiaintheUnitedStatesincreasingbyover29%toarecordhighofnearly133,000.Throughthe‘PassporttoIndia’program,theU.S.governmentencouragesAmericanstudents tostudyabroadinIndia.Similarly,theimplementationoftheGlobalEntryProgramwillfacilitatetravelbetweenthetwocountries.
Mr. Pomper explained that Consulates of the UnitedStates of America in India are facing a staff shortagein proportion to the number of visa applications, andpeopleareadvisedtoapplywellinadvanceforvisas.Headdedthat,“Inthelastfiveyears,thedemandforvisashas increasedby80%,while thestaffinghas remainedstatic. While we have greatly improved efficiency,accommodating visa demand on this scale requiresadequatestaffing.”Theaveragewaiting timeforgettingavisaappointmentisaboutfourweeksnow.Thewaitingtime earlier used to be about a week or a week andhalf, according to Charles E. Luoma-Overstreet, Chiefof the Consular Section, U.S. Consulate, Chennai. Theconsulateprocessesabout1,000to1,500visasaday,hesaid.Mr.Luoma-OverstreetsaidChennaiwasoneofthebusiest visaprocessingcentres in India.Outof totalof1.1millionvisaapplicationsadjudicatedinIndialastyear,Chennaiprocessed2.8lakhapplications.
Mr. Pomper said, “Presently, we are striving to keepinterview appointment waiting time within four weeks,thoughsomepostsareexceeding thatduring thebusysummer season.” He added that anyone who hadreceivedU.S.visasearlierandhavenootherissuescanmakeuseoftheinterviewwaiverprogram.Allapplicantswereadvisedtoplanaheadandapplyearly.
Breakfast Meeting on ‘Make in India: CEOs Speak on the Business Environment in India’
Mr.SivaramYadavalli,Director–StrategyfromPwCIndiamadeapresentationtomemberson7thJuly2016.ThepresentationwasbasedonthePwCSurveyReport–‘CEO Speak on Manufacturing in India and Business Sentiment.’
ThePwCpresentationoftheIndianmanufacturingsectorstatedthat Indiaseemstobeemergingfromanalmoststagnant state in the recent past and heading towardsa path of growth. This is exemplified by the significantgrowthof thesector fromApril toNovember2015.This
turnaroundhasbeenacknowledgedbyvariousmultilateralorganizations,includingtheInternationalMonetaryFund,whichrecentlydescribedtheIndianeconomyasoneofthefew‘brightspots’intheglobaleconomy.
Recent initiatives by the Government of India, such astheMake in Indiacampaign,hasalreadystartedbearingresults. While growth and investments in some of thecore sectors remainamatter of concern, theeconomyis expected to do better in months to come. Similarly,
AmCham
Update
29
EventsAmCham
Issue 2September 2016
Start-Up Indiawillsupplementthegovernment’seffortstoencouragemanufacturinginIndia.Theprogramsprovideglobal recognition to the Indian economy, facilitateinvestment and build best-in-class manufacturinginfrastructure. It emphasizes theneed for production inIndia,eitherbyIndiancompaniesorMNCs.
Thestudyhighlightedreformsrelatedtoland,laborandthegoodsand services tax (GST) as crucialmeans toattain theobjectives.AsperPwC’s19thAnnualGlobalCEO Survey, 75% of Indian CEOs believe there are
moregrowthopportunitiesfortheircompanytodaythanthree years ago. However, several barriers need to beovercometorealizesustainedgrowth,someofwhichcanberesolvedonlythroughgovernmentintervention.Whiletheindustrysensestherightsignalsfromthegovernmentand isoptimistic about long-termprospects, its currentmoodcanbestbedescribedasoneofcautiousoptimism.The report summarizes the views and expectations ofindustryleadersandpresentstheirrecommendationsforcreatingavibrantmanufacturingsector.
Breakfast Meeting: Smart Business Infrastructure – The Legal Framework
The‘MakeinIndia’campaign,alongwiththegovernment’sintention to ease the pain of doing business in India,hasincreasedthecompetitionbetweenstatestoattractinvestment, hence, the Tamil Nadu Chapter ExecutiveCommitteefelttheneedtoprovidememberswithabetterunderstandingofthecomplexityofthelegalsysteminthecountry. On 28th July, AmCham organized a breakfastmeeting focusedonsmartbusiness infrastructure– thelegal framework and invited Mr. P.H. Arvindh Pandian,SeniorAdvocateandAdditionalAdvocateGeneral,TamilNadu,toaddressmembers.
Mr.P.H.ArvindhPandian isanexpert in corporateandtaxlawswithover15years’experience.Hiscredentialsinclude being a member of the committee constitutedby the Ministry of Finance in 2002 for examining theprovisionsofsection72AoftheIncomeTaxActrelatingtomergersanddemergers.HeisanaccreditedmediatoroftheTamilNaduMediationandConciliationCentreundertheauspicesoftheMadrasHighCourtandatrainerformediationprocess.
Mr. Pandianbeganhis address tomembersby statingthattheIndianlegalsystemhasbeeninheritedfromtheBritishandhasitsownsetofcomplexlaws.Thiscoupledwith the huge backlog of cases in the courts is quitea deterrent to a business entity which needs speedyresolutiontoacontentiousissue.Hesaidthatforwinningacaseincourt,oneneedsagoodcase,goodevidence,agoodwitness,agoodjudgeandmostimportantlygoodluck.
Mr.Pandiansaidthattoobtainspeedyjustice,alternatemethodssuchasarbitrationandmediationcanbetried.
Hesaidthattodaymanysmartandintelligentyoungstersaretakingtothelegalprofessionasitiswellpayingandsatisfying providing challenges all the way. He addedthatmediation isanewandexclusivecareeroption fortheyoungerlawyerswithsharpwitandintelligence.WhentheHighCourtdeemsacase tobemediated, it refersthecasetoacentreandallotstwopeople,explainedMr.ArvindhPandian.Hesaidthat,sometimes,clientsdirectlyapproachamediator foranout¬of¬courtsettlement.Mediationhelpsclientssolvetheirproblems.Everythingis kept confidential and discussions are confidential.Mediation is done only by trained persons who doextensive researchonclientbackgroundandearn theirtrust.Mediators have a good rapport with their clients.Mediation is very successful and can be applied to avarietyofcasessuchaslabour¬managementdisputes,motoraccidentclaimsandmatrimonialdisputesetc.
Mr. Pandian also spoke about arbitration to resolvedisputes arising from international commercialagreements and other international relationships in thecountry.Toprovideaneffectivemechanismforresolutionofdisputesthrougharbitration,theArbitrationAct,1940,was introduced in the country. Subsequently, it wasamendedby theArbitrationandConciliationAct, 1996.Arbitrationisanoptiontoprovidinganeffectiveplatformfor resolution and reduce the burden of courts. Mr.PandianaddedthattherecentverdictsbytheSupremeCourtandhighcourtsonthelawofarbitrationareintunewith international arbitration laws for disputes involvingcross-bordertransactions.
AmCham
Update
30
EventsAmCham
Issue 2September 2016
Corporate Members
New Additional Members
Mr. Arun DevarajDirector
Visteon Technical and Services Centre Pvt. Ltd.
AmCham Welcomes New Members
Mr. Sudipto RoyManaging Director
Principal Retirement Advisors Pvt. Ltd.
Mr. Gaurav KarnikPartner
Ernst & Young LLP
Mr. Arvind AgarwalDirector
Amritt India Associates Pvt. Ltd.
Mr. Ranjit NambiarManaging Director – South Asia
Datacard India Pvt. Ltd.
Mr. Vinod ChandranVice President, General Manager
Brocade Communications Systems Pvt. Ltd.
Mr. B RaghavendranCOO
CISCO Systems India Pvt. Ltd.
AmCham
Update
31
EventsAmCham
Issue 2September 2016
AmCham
UpdateEventsAmCham
Regional Secretariat
National Secretariat
Mr. L.N. Agarwal Senior Manager & OSD
Email : [email protected]
Ms. Paridhi Goel Thakur Program Lead
Email : [email protected]
Ms. Tanya PaulCommunication Director
Email : [email protected]
Ms. Sudeshna Ghosh Regional Director - Karnataka Chapter
Email : [email protected]
Ms. Ruth Sandya RodriguesRegional Director - Hyderabad Chapter
E-mail : [email protected]
Mr. Yeshi DorjeeManager - Administration & PublicationsEmail : [email protected]
Ms. Madhvi KatariaDeputy Executive Director
Email : [email protected]
Ms. Mamta UppalMembership & Events Manager
Email : [email protected]
Ms. Shivani RainaProgram Director - ECP
Email : [email protected]
Mr. Aubrey DanielsRegional Director - Tamil Nadu Region
Email : [email protected]
Ms. Valerie Swope Program Coordinator
Email : [email protected]
Mr. Gaurav Mendiratta Sector Manager - Medical Devices Email : [email protected]
Ms. Udaya Arun Program Manager - Aerospace & Defense
Email : [email protected]
AmCham Team
Ms. Surabhi WahalRegional Director - Western Region
E-mail : [email protected]
Ms. Amada Kidwai Regional Director - Eastern RegionE-mail : [email protected]