Telangana Government has signed an MoU with UK India Business Council to mobilise investments and businesses from the UK into the state that has embarked on the fast track of economic growth since its separation from Andhra Pradesh a few years ago.
The memorandum was signed between a visiting delegation of UKIBC led by Chief Operating Officer Kevin McCole and Telangana Government Principal Secretary of Industries and Commerce Jayesh Ranjan in Hyderabad yesterday.
According to Commisionarate of Industries, Telangana Government, foreign companies can make investments or operate their business in a number of ways such as through a liaison or representative office, project office, branch office, a 100% wholly owned subsidiary, or a joint venture company. A foreign company incorporated under the Companies Act is treated at par with any domestic Indian company within the scope of approval and subject to all Indian laws.
Government has provided a liberalised policy framework for approval of NRI investments through both the automatic and the government route. Such foreign company can invest either through automatic approval by the country's Central bank, the Reserve Bank of India (RBI), Mumbai, or through the Foreign Investment Promotion Board (FIPB). The state government says as a policy it attaches importance to investments by NRIs and Overseas Corporate Bodies (OCBs) the corporate bodies in which NRIs hold at least 60% of equity.
Telangana Government has last month partnered with GlobalLinker to bring its MSME sector to digital platforms to usher their financial inclusion and enable them to connect to global business and industrial community. Nearly 2.3 million enterprises in the state stand to benefit from the state's digital initiative.
"We are pleased to sign this agreement with UK India Business Council. UK and India share great synergies in trade and investment which have only grown in recent years. Telangana’s multiple investment-promotion schemes, along with its business-friendly regulatory environment act as a major attraction for the UK based entrepreneurs and corporates. As such we’re confident that this MoU will further help us to boost the investment in the state and maximise our growth potential," Ranjan said.
UK companies employ nearly 10,000 people across Telangana, a State that is rapidly rivalling Bangalore as the IT capital of India and leading the way in health-tech and agro-tech innovation.
"The Government of Telangana has gone to exceptional efforts to accommodate business needs in recent years, most notably with the introduction of the State Project Approval and Self Certification System (TSiPASS) which gives companies regulatory permissions and clearances within 15 days for large-scale projects," a UKIBC statement here said.
"This makes Telangana an attractive destination for the world’s largest tech and innovation firms, and a natural partner for immense UK expertise in artificial intelligence and health-tech research. The possibilities for greater UK-Telangana collaboration are immense across numerous strategic sectors, towards which, this MoU represents an important step in realising our shared potential," it said.
Under the MoU, the Govt of Telangana and UKIBC will take collaboration to the next level through sharing information, promoting reform that will ease doing business, smoothen investor interactions, and ensure State officials are familiar with the needs of UK business.
"In short, this is a shared commitment towards improving the long-term relations that will deliver investment, growth, and jobs in Telangana," it added.
Speaking on the occasion Kevin McCole, COO, UKIBC said: "The world knows Hyderabad as the cyber capital of India, playing an increasingly important role in both the Indian and global economy. This MoU is about recognising these strengths and support UK businesses and universities and the Government of Telangana to grow together as natural partners."
Identifying Telangana’s clear and emerging strengths, the MoU prioritises advanced manufacturing including aerospace, defense, heavy engineering, food processing, healthcare & pharma and higher education as sectors where the UK and Telangana can collaborate from a position of strength. The MoU will also plug the Government of Telangana into the vibrant UK start-up eco-system.
Expressing satisfaction over signing of the MoU, Varun Mali, Deputy Head of Mission and Senior Investment Adviser of British High Commission said, "I am consistently clear that there are rich, untapped mutually beneficial opportunities for business and trade between UK. This will provide an excellent platform to identify these.”
Earlier this month, Ranjan, met with McCole and other UKIBC members during his visit to the UK and more interactions are expected between UK investors and senior officers of the State to discuss further investment opportunities.
Already, UKIBC is helping to facilitate the University’s Social Responsibility Conference in Hyderabad organised by the University of East Anglia and the University of Hyderabad this week. In the long-term, the Council is planning to host the first ministerial and business delegation from Telangana to the UK to raise awareness of the opportunities for UK companies in Telangana.