Open-door policy for Sri Lankan companies in India
- With several internal changes going on in India, there are new opportunities for Sri Lankan companies.
- Many new economic changes that could be advantageous for Sri Lanka.
- The non-profit CII has more than 8,000 members from Indian multinationals, corporates and SMEs and is a leading policy influencer and reference point on overall Indian SMEs, multinationals and industry.
- The CII has additional 200,000 member firms as well.
- CII is also present in 9 overseas destinations-China, Australia, Bahrain, Egypt, France, Germany, Singapore, UK, and USA.
- CII’s institutional partnership network spans 106 countries with 320 counterpart organizations contributing to its global trade volume.
According to Shreekant Somany, a new opening is created in this changing scenario for Lankan industries and SME’s.
He is a governing council member of the Confederation of Indian Industry (CII). </p>
Recently, a CII delegation held discussions with Minister of Industry and Commerce Rishad Bathiudeen and ministry officials.
Mr. Somany is also performing as the Managing Director of Somany Ceramics Ltd, one of the top 5 tile manufacturers in India.
India as one of the largest Asian nations is keen to spur the economy and has recently introduced the reduction of non-tariff barriers and some key barriers to increase the trade volume with its neighbors.
With the unity government coming in to power, there is new interest and vigour in India with regard to Sri Lanka.
One key policy change in India is the devolution of funds going to Indian states from the centre which was only 2% before and now it is increased to more than 40% of the total tax collected by the centre.
This new decision has created competition among federal states to access these funds, which in turn opens the door for Lankan companies to engage with Indian states in a new platform of trade and investment.
The Indian delegation presently touring Colombo:
- Indian process efficiency and energy conservation giant Forbes Marshall Limited.
- Infrastructure construction and project management multinational IL&FS Engineering and Construction.
- The road and highway surfacing giant Elsamex SA.
- Sectoral leaders such as Taylor Rubber Ltd.
OSL Take:
The ETCA agreement is fast-tracked by both India and Sri Lanka amidst stiff opposition by some traditional protectionist groups in both countries.
The mutually beneficial agreement is now being processed with expert opinions, which is then carefully scrutinized by both governments to ink the most suitable comprehensive long-term arrangement.
In this backdrop of mutual cooperation between the 2 nations and the more transparent Indian line of credit offered to Sri Lankan projects, OSL invites potential Indian companies to explore the USD 44 billion Western Region Megapolis Masterplan investments proposed on the PPP investment model with our local matchmaking expertise.
Feel free to consult the biz-friendly OSL Team now to learn more.
| Article Code : | VBS/AT/19102016/Z-3 |