On July 24, 2020, USISPF hosted a briefing with Under Secretary Mark Menezes of the Department of Energy to discuss the recent U.S.-India Strategic Energy Partnership (SEP) Ministerial as well as future energy collaborations with India. Moderated by Nolty Theriot, Senior Vice President of Government Affairs & Policy, the panel included partnerships from a variety of industry members, including companies like Chart Industries, Tesla, Exxon Mobile, Cheniere Energy, Air Products & Chemicals, Freeport Industries, Xcoal Energy & Resources, and JTI India Projects. The discussion offered insights into government and industry perspectives on opportunities and challenges in the U.S.-India energy relationship.

Under Secretary Menezes highlighted the industry perspective, especially pursuing an ‘all of the above’ approach as a means of advancing economic growth and energy security. Following the second iteration of the U.S.-India Strategic Energy Partnership Ministerial meeting, the Under Secretary pointed to energy trade as a critical point of the bilateral relationship. To that end, he emphasized recent growth in this partnership. The U.S.-India Gas Task Force has already seen success in expanding gas and oil trade, the U.S. is now India’s fifth largest supplier of natural gas, and there has been an increase in crude oil and coal imports in India from the U.S. Looking forward, the nuclear advancement discussions also represented one important avenue to advance the partnership. Thus, the abundant energy supplies from the U.S. have been well utilized in meeting Indian demand.

Energy technology exchanges were also featured as an important component of this relationship. The launch of the Public-Private Hydrogen Task Force, together with the Ministry of New and Renewable Energy, the USISPF and the Department of Energy focused on the production of hydrogen from both renewable and fossil fuel sources. Under PACE-R, efforts towards research and development on smart grids and biofuels were conducted by collaboration between American and Indian academics, national labs, and private players. Bloom Energy was spotlighted as a private player leading in the area of fuel cell use. These developments occurred in conjunction with workforce development benchmarks as well. The Under Secretary reiterated the Department of Energy’s commitment to gender diversity and skillset diversity, and the work of the South Asia Women in Energy platform to this end.

The panel offered space for industry members to share their work and feedback. Companies were in agreement on India’s critical role in future energy sector growth, both as a collaborator and as a significant market. To this end, the need for pilot projects and the acceleration of regulatory body certification was suggested as a means to speed up this development. The support for a hybrid model, where no one fuel source would ‘win out’, was reiterated, and hydrogen spotlighted as a big part of this future. India’s use of its deep-water territory as a source of domestic crude oil and potentially natural gas energy was suggested to reduce its dependence on imports. Companies expressed that it would be beneficial to both countries if it was an American IOC that assisted this transition. They also highlighted the need for India to update its investor protection regulations to facilitate this. Additionally, in terms of regulatory changes, the parity in India’s tax structure for LNG in comparison to other fuels was also suggested as the key to unlocking LNG demand in the country.

Participants also spoke of opportunities in new avenues, including reduced-emission sources of energy, Gasification technology, in addition to carbon capture utilization and storage, were discussed as opportunities for significantly cleaner uses of indigenous energy sources. The growing Indian steel industry also offered growing opportunities to export metallurgical coal to India, a critical input for the industry that India does not produce in the right grade abundantly. As a win-win situation, it offered the U.S. a huge opportunity as it is a 7-billion-dollar market. On India’s end, the quality of U.S. coal, both metallurgical and low-ash, low-moisture thermal coal, is among the world’s best.

Finally, participants highlighted some regulatory changes that would increase the ease of doing business bilaterally. While Indian clients typically preferred flexible short or medium-term contracts (particularly given the current economy), long-term contracts were seen as most beneficial to the relationship, and investments in infrastructure and shifting market dynamics would be useful to this end. Facilitating face-to-face meetings with a wider consortium of Indian companies was also suggested as a way to expand the buyer segment. Finally, achieving more clarity and consensus on tariffs, aligning safety standards to make sense for U.S. companies, and streamlining procedures for India-based operations would go a long way in boosting business.

Under Secretary Menezes concluded the call by commending the industry members for bringing in cutting edge technology to use. While India has a great future of growth in the energy sector, bringing technology across all fuel sources to meet this demand in a manner that will reduce emissions is essential. The Department of Energy is committed to working bilaterally through potential hurdles, from tax policy to regulations, and in collaboration with industry members across both nations to this end.

On July 23, USISPF hosted a roundtable with Dr. Guruprasad Mohapatra, Secretary of the Department for Promotion of Industry and Industrial Trade (DPIIT). In discussion with USISPF members, Secretary Mohapatra shared insight and updates on the ongoing work of the DPIIT to improve ease of doing business in India.

In his opening statements, Secretary Mohapatra discussed the challenges and opportunities presented by the COVID-19 pandemic, which has caused companies to rethink their strategic plans, accelerated the adoption of digital technologies, and highlighted the need to diversify supply chains by demonstrating the risks of overreliance on a single geography for sourcing essential inputs. He also discussed recent efforts by the Government of India to attract investment, including the establishment of Empowered Groups of Secretaries and project development cells to assist investors in specific sectors, the March stimulus package, and reforms.

Finally, Secretary Mohapatra discussed India’s success in accelerating the domestic production of goods such as personal protective equipment (PPEs), N95 masks, and ventilators, which were necessary to the country’s COVID-19 response. Before March 2020, no PPEs or N95 masks were manufactured in India, and demand for ventilators far outstripped the in-country production capabilities. As of July, Indian manufacturers are not only producing enough PPEs, masks, and ventilators to meet domestic demand but exporting them.

Representatives from USISPF member companies – industry leaders from many sectors, including technology, energy, aerospace, logistics, and more – had the opportunity to highlight or recommend policies beneficial to their sector, or raise concerns about challenges that the DPIIT could help to address.

On July 14^th, 2020, the U.S.-India Strategic Partnership hosted a panel by representatives of the state government of Chhattisgarh featuring Mr. R P Mandal, Chief Secretary; Mr. Manoj Kumar Pingua, Principal Secretary, Department of Commerce & Industries; Mr. Amitabh Jain, Additional Chief Secretary, Finance; Mr. Rakesh Chaturvedi, Principal Chief Conservator of Forest who offered insights to the capabilities and potential of the state, as well as opportunities for collaboration with the United States.

Since its creation in 2000, its industry has grown exponentially, and the state has achieved a leading position in the start-up and ease of doing business rankings for the nation. As a consequence of its shared borders with seven other states, it enjoys market access to a population of 510 million people, facilitated by its robust transportation systems.

What makes Chhattisgarh an attractive investment destination?

1. Abundance of raw materials: Chhattisgarh also has many raw materials as a consequence of its geography. It is abundant in 28 minerals, making it an ideal destination in India for companies in iron, steel, and power industries. It also is home to many forest products, due to its 44% forest cover. This segment has seen a lot of growth with the export of forest produce across the globe, and is assisted by the fact that it is inherently organic, although full certification is yet to be acquired. Tribal families acting in a federation in the industry receive the Minimum Support Price and ensure the benefits of value addition reach the tribes. It is an area with great investment potential, and the federation is considering creating a BBB board to increase visibility of these raw materials.
2. Human Capital: On the human capital side, its education ecosystem is well established. With 3000 vocational training institutes, it is home to the largest skill development effort in India. It also has a variety of public and private universities and colleges, as well as ITIs, to meet various educational needs.
3. Geographical Connectivity: The state has also invested in its connectivity to increase ease of transport for industries, with national highways connecting Chhattisgarh to other major cities, as well as railways connecting remote regions of the state. Its ‘Smart City’, Nava Raipur, has state-of-the-art infrastructure as well as dedicated sectors for housing and non-polluting industries, making it an ideal location for technology-based industries.
4. Industrial growth: Currently, industries in the state are in sector-specific industrial parks to facilitate cluster-based development in the state and all districts. Industries can be grouped by type: from ‘core strengths’ like steel, power and aluminum, to ‘sunrise sectors’ like food processing and biofuels, and ‘growth potentials’ like pharmaceuticals and textiles. This overview, along with Chhattisgarh’s ‘single window’ system and cost-efficient business opportunities, make it an ideal location for foreign capital.

Opportunities for collaboration with US Industry:

1. Manufacturing in varied sectors, electronics, food processing, energy, and others. Some specific policies encourage the United States to consider Chhattisgarh as a location for capital. A highlight would be the Chhattisgarh Industrial Policy, which offers special bespoke incentives and subsidies for investments above $13 million and similar incentives in electronics and ITEs for fixed capital investments.
2. Panelists pointed out that Chhattisgarh had fortunately fared quite well with COVID, with traceable contact of patients and no community spread. While the lockdown led industries to shut temporarily, processing industries and industries with continuous processes had continued to function. Currently, since most industries have opened to function at over 80% capacity and migratory laborers have returned to the state increasing labor supply, the moment is opportune to invest in the supply chain of the state.
   Given the natural resources of the state and policy reforms to attract and favor investment, Chhattisgarh has committed itself to growing into its full industrial potential.

On May 5, Mugdha Sinha, Secretary of Science & Technology for the Government of Rajasthan, joined USISPF members through USISPF’s ongoing webinar series. In a discussion moderated by USISPF Chief Operating Officer Gaurav Verma, Ms. Sinha spoke on the Government of Rajasthan’s COVID-19 response and relief efforts, and the role that technology has played in this response.

Speaking on the Government of Rajasthan’s response to the COVID-19 outbreak, Ms. Sinha highlighted the proactive creation of two committees shortly after the first lockdown was announced, to address the needs of people from other states stranded in Rajasthan during the lockdown and to develop a post-COVID-19 economic strategy. Now that the lockdown is in its third stage, relaxing restrictions on movements in some district and allowing businesses and factories to resume activities, the Government of Rajasthan is now working to help people from Rajasthan who have been stranded elsewhere, domestically or abroad. Ms. Sinha identified new challenges related to these efforts, such as screening and quarantine measures to prevent new outbreaks of COVID-19 and increased demand for rural jobs as migrant workers return to their homes, but highlighted that so far, Rajasthan’s containment efforts have been efficient, effective, and proactive. She also highlighted that these efforts have been calibrated to save lives without risking livelihoods.

In terms of how Rajasthan has leveraged technology in its COVID-19 response, Ms. Sinha noted that ‘e-governance’ measures were already in place prior to the lockdown, which eased the transition to working from home for government officials. As well as contact tracing apps and processes virtually connecting the Government of Rajasthan to its constituents, the state has leveraged technological solutions to continue providing public access to cultural activities such as museums, which also provides continued employment to artists and artisans.

USISPF and Squire Patton Boggs co-hosted a webinar briefing members on the latest policy responses to COVID-19 from a U.S., European, and Indian perspective. Speakers included Frank Samolis, Partner at Squire Patton Boggs; Ambassador Frank Wisner, International Affairs Advisor at Squire Patton Boggs; former U.S. Representative Joe Crowley; Matthew Kirk, International Affairs Advisor at Squire Patton Boggs; David Stewart, Principal at Squire Patton Boggs; and Dharmakirti Joshi, Chief Economist at CRISIL.

David Stewart, Matthew Kirk, and Dharmakirti Joshi spoke on the respective government efforts of the U.S., Europe, and India to reopen their economies while continuing to contain the spread of the COVID-19 virus. David Stewart opened the discussion by highlighting the U.S. government’s economic stimulus efforts in response to COVID-19, including the CARES Act, the Paycheck Protection Program, and the Main Street Lending program. In Europe, different countries have different in their impact and response to the COVID-19 pandemic, but across countries, efforts to reopen the economy largely involve adhering to social distancing measures, using track-and-trace systems to contain the further spread of the coronavirus, and financial packages. Dharmakirti Joshi stated that, while India has a limited fiscal space in which to organize its response, the country has several options to finance its response. He also noted that India has not “front-loaded” its response, and the next phase of its policy response should be aimed at support for small and medium businesses.

In a Q&A session with USISPF President and CEO Mukesh Aghi, Joe Crowley, Frank Wisner, and Frank Samolis shared their perspectives on the relationship between the U.S. and India. Rep. Crowley shared his insight into how the relationship between the U.S. and India has grown over the past few decades, and Frank Samolis spoke on the possibility of future trade negotiations between the U.S. and India. Amb. Wisner stated that cooperation between the U.S., Europe, and India is vital to containing COVID-19 and bringing back their economies, especially given the shifts occurring in the global economy as a result of COVID-19. He also highlighted the importance of India presenting a competitive and attractive market for foreign investment, to take advantage of global interest in diversifying supply chains.

On April 9, Amb. Taranjit Sandhu, the Ambassador of India to the United States, joined USISPF members on a webinar to provide updates on India’s COVID-19 response and what the Embassy of India is doing to assist citizens and businesses at this difficult time.

In terms of India’s response to COVID-19, Ambassador Sandhu emphasized that India’s goal is to minimize the human cost of the pandemic and to contain the virus. He highlighted the $22.5 billion stimulus package the Government of India announced in March, which provides targeted aid to India’s most vulnerable citizens. He also noted the Government of India’s recent decisions to extend tax deadlines and the visas of foreign nationals unable to leave India due to the national lockdown. He spoke of the opportunities for the U.S. and India to collaborate on issues related to COVID-19 in areas ranging from technological transfers to vaccine development, pointing to the recent teleconference and Twitter exchanges between Indian Prime Minister Narendra Modi and U.S. President Donald Trump in which the two leaders reiterate their commitment to working together at this time. He also stated that there will be many opportunities for India and the U.S. to strengthen economic ties in the post-pandemic future, particularly in the energy sector.

Ambassador Sandhu also answered questions from USISPF members related to lockdown exemptions for essential goods and services, the Government of India’s recent decision to ease restrictions on pharmaceutical exports, and where to find updates on pandemic-related policy decisions. The Ambassador encouraged U.S. companies with a presence in India to reach out to the Embassy’s commerce wing for assistance on specific issues.