Both governments have taken a number of steps to maximize the common meeting points, i.e. the India-Israel Industrial R&D and Technological Innovation Fund (I4F), the India-Israel CEO forum, the India-Israel Innovation Bridge, an online platform to encourage and facilitate collaboration between Israeli and Indian startups; the Indo-Israeli Agriculture Project; MoUs (memorandums of understanding) between the Indian Space Research Organization (ISRO) and the Israel Space Agency (ISA); and MoUs on India-Israel water cooperation.

The Indian and Israeli diplomatic teams are working hard but at the same time, they need to understand that the Modi-Netanyahu era is special. The kind of encouragement for launching new ideas and initiatives which they are getting from their leadership is unmatched in the world. They should leverage this opportunity.

The defense and security cooperation is the most crucial strategic asset for both nations. To identify collaborative ways to deal with the mutual threats requires military and counter-terrorism experts to conduct in-depth deliberations.

Israeli defense players are actively participating in the “Make in India” initiative and they have formed a number of joint ventures (JVs) with Indian partners. Israel’s Elbit group has formed a number of joint ventures with Indian companies, such as Adani-Elbit Advanced Systems India Ltd, a JV to manufacture UAVs in India.

Elbit Systems’ ISTAR Division has formed a joint venture with Adani Group’s unit Aero Defence Systems & Technologies and Alpha Design Technologies to manufacture UAVs in India. Since 2004, Elbit Security Systems and Alpha Design Technologies are engaged in another joint venture – Alpha-Elsec Defence and Aerospace Systems. This year, in July, both sides renewed the agreement to enhance the scope of operation of this JV.

In early 2017, IAI inked an MoU with Kalyani Strategic Systems to develop, build and market selected air defense systems and lightweight special purpose munitions. IAI has also entered into a cooperation agreement with Dynamatic Technologies and Elcom Systems for the production/assembly and maintenance work of mini-UAVs in India. At Aero India 2017, IAI’s Golan Industries Division signed an MoU with Taneja Aerospace & Aviation Ltd. (TAAL) to cooperate in the development, production, marketing and sale of civil and military aircraft seats. In the month of January 2016, IAI signed an MoU with Premier Explosives Ltd. In July this year, IAI and Wipro Infrastructure Engineering (WIN) announced a strategic alliance to manufacture composite aerostructure parts and assemblies.

Last month, India’s Tata Power Strategic Engineering Division (Tata Power SED) partnered with DSIT Solutions of Israel to supply portable diver detection sonar (PDDS) to the Indian Navy. Tata Advanced Systems and ELTA Systems of Israel have formed a JV called HELA Systems.

India’s Mahindra group has also formed JVs with Israeli defense partners. Mahindra Aero Structures signed an MoU with Cyclone, a subsidiary of Elbit Systems, to collaborate on the production of aerostructures parts and assemblies. Mahindra group’s Mahindra Telephonics has signed an MoU with Shachaf Engineering of Israel. Both will jointly develop strategic electronics subassemblies and systems for aerospace, marine and automotive applications.

In 2017, India’s Dynamatic Technologies Ltd and Magal Security Systems of Israel partnered for India’s smart border management initiative. Both companies have rich experience in developing advanced technological solutions crucial for the protection of critical infrastructure and border management.

IN 2015, Kalyani Strategic Systems, a defense arm of Kalyani group, entered into a JV with Israeli government- owned Rafael Advanced Defence Systems. The Kalyani Rafael Advanced Systems Pvt Ltd has invested in the high-end technology and advanced manufacturing techniques to develop missile technology, command and control systems, guidance systems, electro-optics, remote weapon systems, precision guided munitions and more. Rafael has also signed an agreement with Hyderabad-based Astra Microwave Products Ltd to build tactical radio communication systems, electronic warfare systems and signal intelligence systems. India’s Punj Lloyd and Israel’s IWI (Israel Weapon Industries Ltd.) have set up the first private sector small arms manufacturing plant in Madhya Pradesh, to produce equipment for both local and export use.

The Barak 8 (LR-SAM or MR-SAM) is the product of the joint efforts of Israel Aerospace Industries (IAI), India’s Defence Research & Development Organization (DRDO), MAFAT (a joint administrative body of the Israeli Defense Ministry and IDF), Rafael, and Bharat Dynamics Ltd.

During the past three years, the Indian government has launched wide-ranging plans for military modernization, police force modernization and border management and these initiatives offer great opportunities for defense and security startups/SMEs (Small and Medium Enterprises) collaboration.

In Israel’s defense industry the contribution of the SME sector is significant. Despite being relatively low in numbers, these SMEs provide added value to the larger firms and are crucial for boosting Israel’s defense exports. In 2014, the SME department of SIBAT (the Defense Ministry’s International Defense Cooperation Directorate) launched a dedicated forum to provide guidance and consultancy about exports to the representatives of Israeli defense SMEs and to promote the country’s defense SMEs in international markets.

In India, a number of MSMEs (Micro, Small and Medium Enterprises) used to serve as the suppliers to DPSUs (Defense Public Sector Undertakings) and they are the key players behind the success of some major defense manufacturing projects. According to the Dhirendra Singh Committee’s report (a committee set up by India’s Defense Ministry in 2015), nearly 6,000 MSMEs across the country are supplying the components and sub-assemblies to the DPSUs, ordnance factories, DRDO (Defense Research and Development Organizations) and private industries. During his visit to Israel Prime Minister Modi, along with Prime Minister Netanyahu, launched the India-Israel Global Innovation Challenge and called on Israeli and Indian startups to develop solutions in the areas of agriculture, water and digital health. A number of startups, entrepreneurs and research teams of both sides have actively participated. There is a need to promote such a culture of co-production among the defense and security SMEs of both sides too.

The “Digital Army” concept is not limited to the use of digital technologies; it is also about having a seamless coordination mechanism which provides actionable and real-time information. Israel was among the first nations to launch the Digital Army initiative. In the year 2004, Elbit Systems signed an agreement with the Defense Ministry for the Digital Army Program (DAP) for a period of 10 years (2004- 2014). Rafael Armament Development Authority Ltd. and Tadiran Systems Ltd partnered with Elbit Systems for DAP. In 2014, the IDF concluded the deployment of the Tzayad (Digital Land Army) system in all of its field formations and now they are working to build the next generation of the Israeli army’s digital C4I network. In 2015, India launched it’s Digital Army program. Israeli experience in building and running a robust DAP can give the right push to India’s Digital Army initiative.

Last year, India surpassed the United States in the total number of people online, second only to China. The increasing use of mobile telephones and social media is contributing to an explosive increase in cyber threats. To deal with the challenges in cyberspace, India will have to change its approach from reactive to proactive.

With more than 300 cybersecurity startups and approximately $6.5 billion of cyber product exports, Israel has become a cybersecurity powerhouse. In a joint statement issued during Prime Minister Modi’s Israel visit, both sides asserted their desire to institutionalize cooperation on cyber issues through a joint framework. And as Isaac Ben-Israel, chairman of the ISA and National R&D Council and head of Cyber Research Center at Tel Aviv University has said: “We have developed a lot of technology but there is just not enough of a market. India has a huge market and there is a lot of potential for cooperation between the two countries.”

In the mid-term review of FTP launched in the month of December, the Indian government has announced fresh incentives worth Rs 8,450 crore ($1.3 billion) to boost exports and to support the MSME and labor-intensive industries. There is also an emphasis on “Ease of Trading” across the borders, new products and new markets.

During 2015-16, approximately $317 million of Make-in-India defense platforms, equipment and spares were exported to over 28 countries in the world. A few days back India joined the Wassenaar Arrangement, a multilateral export control bloc. In June 2016, India was admitted to MTCR (Missile Technology Control Regime) too. India has joined two out of four major multilateral export control regimes. Israeli defense manufactures are now considering India as an export hub too. The Indian government’s “Make in India” and “Make with India” initiatives offer such opportunities.

This partnership is crucial for future security and prosperity of both nations and maximizing the military and commercial engagements should be the next goal of the India-Israel partnership.

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He further noted that his firm held discussions with Neom’s officials to exchange experiences and strike partnerships.

“In the emerging world, public markets aren’t as open to mid-market opportunities. When we first arrived in Russia, private equity was the only way to invest – you had to buy the company and understand the sector,” the Indian official said on Twitter.

Organised by Saudi Arabia’s sovereign wealth fund, the FII conference, dubbed “Davos in the Desert” started on Tuesday, 23 October in Riyadh and is scheduled to end on Thursday, 25 October.

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Most Indian CEOs and business leaders, including Oyo Rooms boss Ritesh Agarwal and MapMyGenome CEO Anu Acharya, kept their scheduled engagements to attend and speak at a controversial investment conference in Saudi Arabia this week despite a global boycott by dozens of top business leaders from around the world.

Some of the biggest names in global business and finance pulled out of the ‘Future Investment Initiative’ (FII), a financial summit nicknamed ‘Davos in the Desert’, after worldwide outrage over the Saudi government’s role in the killing of journalist Jamal Khashoggi in Turkey.

The exodus of global invitees include the CEOs and bosses of Uber, JP Morgan, Siemens, Blackstone Mastercard, HSBC, Credit Suisse and Ford, as well as the heads of financial institutions such as the World Bank and the International Monetary Fund (IMF).

All in all, the controversy surrounding Khashoggi’s murder has taken the shine off the massive event which was held by Saudi crown prince Mohammed bin Salman, who has over the last few years been trying to modernise the country’s oil-dependent economy.

Before the event started, four of the more prominent Indian speakers that were highlighted and promoted by the organisers of the FII included: Ritesh Agarwal (CEO, Oyo Rooms), Vijay Shekhar Sharma (CEO, Paytm), Vikram Limaye (CEO, National Stock Exchange) and Anu Acharya (CEO, MapMyGenome).

Of these, both Limaye and Sharma did not go onto speak at their respective sessions – although it’s not clear whether this was because the panel’s composition was re-structured due to the large number of dropouts, or because they pulled out over ethical and moral reasons.

In Sharma’s case, there was a separate reason why he may not have attended the summit: the payments firm CEO is currently facing a case of personal extortion by Sonia Dhawan, his long-time secretary and the company’s chief communications officer.

Multiple questionnaires were sent to both the National Stock Exchange and Paytm asking whether their bosses had pulled out due to Khashoggi’s death but no response was received despite a number of reminders over e-mail and SMS.

Other notable Indian business leaders who either attended or spoke included Shiv Vikram Khemka, Vice-Chairman of the SUN Group, which has business interests in everything from defence to mining, and Anand Gupta of Gumpro Drilling Fluids.

Panels and engagements

MapMyGenome’s Anu Acharya – who runs a genomics consumer company that looks to help patients get access to better preventive care for genetic diseases, attended and spoke at a panel on the “Frontiers of Health”. The company has over the last few years raised over $2 million in funding, some of which came from prominent angel investor Rajan Anandan, who is the managing director of Google India.

In the last few weeks, senior executives of Google, such as Diane Greene who heads Google Cloud, have backed out of their scheduled appearances, citing discomfort over Khashoggi’s killing.

The SUN Group’s Shiv Vikram Khemka attended and spoke on a panel that discussed whether private equity or public markets would drive the next wave of growth.

The spotlight on the SUN group has in recent times fallen on its appearance in the Panama Papers. As The Indian Express reported, the Khemkas of the SUN Group were the Indian business family with the largest number of offshore entities in Appleby’s records. In particular, Shiv Vikram is shown as the “beneficiary or officer for 104 offshore entities”.

Softbank, Paytm and Oyo Rooms

While Paytm and Oyo Rooms do no business in Saudi Arabia – both companies are indirectly connected to the country through their connections to the Softbank Group’s Vision Fund.

Responding to external pressure over the journalist’s death, Softbank boss Masayoshi Son, whose Vision Fund raised over $40 billion from Saudi Arabia last year, cancelled his speaking engagement but visited the country days before the conference started and met senior government officials.

The Vision Fund has significant investment in two Indian start-ups – Paytm parent One97Communications ($1.9 billion) and Oyo ($300 million).

Ritesh Agarwal of Oyo Rooms and Vijay Shekhar Sharma of Paytm were supposed to attend a panel on “Funding Visionaries”, along with Rajeev Misra (CEO, Softbank Vision Fund) and Michael Marks (CEO, Katerra).

On the third day though, while Agarwal attended and spoke, the panel was changed to drop Paytm’s Vijay Shekhar Sharma and Softbank’s Rajeev Misra and include instead Softbank Investment Advisers partner Munish Varma.

The Wire has sent detailed questionnaires to both Oyo Rooms and Paytm, asking the companies whether they had a position to take on the Saudi Arabian government’s role in Khashoggi’s death, but received no response despite multiple reminders.

Shortly after the final day of the Future Investment Initiative wrapped up, the BBC, quoting local media, reported that Khashoggi’s murder was “premeditated” – a statement that was allegedly made by Saudi Arabia’s public prosecutor.

Saudi crown prince Mohammad Bin Salman had, in fact, broken his silence on the killing at the Investment summit in Riyadh on Wednesday. He said that the murder was a “heinous crime that cannot be justified” – and promised to hold the perpetrators “accountable”.

So far, India’s position on the killing of Khashoggi has been non-committal. The only question fielded by the ministry of external affairs was on October 18, when the spokesperson refused to comment.

Question: The question is on Jamal Khashoggi who is the journalist who was allegedly killed by the Saudis. What is India’s stand on that?
MEA spokesperson Raveesh Kumar: I think I have seen media reports that this matter is still under investigation and so at this stage I have no comments to offer.

Even after rapid developments in the case, with the Saudi Arabia government accepting that Khashoggi was killed in its consulate and the Turkish president’s revelations this week, there has been no updated statement from India.

This is par for the course for New Delhi, which has refused to wade into the politics of the region.

Last year, when Saudi Arabia and UAE imposed an embargo on Qatar, India refused to take a side. Similarly, India also never commented on the Iran-GCC quarrel, which spilled out onto various fronts in the region like Yemen and Bahrain.

Officials point out that New Delhi has a strict long-standing policy of not aligning to any side, especially since over eight million Indians reside in the Gulf.

The post Despite Global Boycott, Indian CEOs Attend Saudi Arabia’s ‘Davos in the Desert’ appeared first on SUN Group.

OXFORDSHIRE, United Kingdom — China’s economy may be bigger, but India has the “secret sauce” to propel the country toward a prosperous future, Sun Group vice chairman Shiv Khemka said on stage Friday at VOICES, BoF’s annual gathering for big thinkers in partnership with QIC Global Real Estate.

“We’re a thriving, noisy, joyful, confusing, confounding democracy and in the cradle of an ancient, vibrant, youthful and creative culture,” he said. “There’s some secret sauce that has allowed us to survive and rejuvenate for centuries.”

India’s rise is one of the 10 trends for 2019 highlighted in the latest State of Fashion report from BoF and McKinsey & Co., which was released Thursday. Though poorer than China, which is soon to become the world’s biggest luxury market, India is expected to grow faster over the next few years, and surpass its neighbour in population. By 2022, the country’s apparel market is projected to reach $59.3 billion, approaching that of the UK or Germany.

Khemka said he’s hopeful that the country’s young population — 50 percent of India’s 1.3 billion people are under 25 — will provide a catalyst for rapid development. Consumers increasingly reside in urban areas, with 49 cities topping 1 million people, and are smartphone-equipped, making them prime e-commerce customers, he said.

“The fashion industry has a huge voice on the planet … We need to use our voice for change as fast as we can.”

India’s main challenge is finding ways to support its rapid growth, including meeting soaring energy needs. Khemka said the Indian government has set ambitious renewable power targets, embracing solar, electric vehicles and other promising technologies. Finding enough jobs for millions of young people entering the workforce is another hurdle the tech sector may be able to help clear.

“We believe that using technology perhaps we can leapfrog some of the problems the world has created for itself in terms of sustainability” and other issues, he said.

Khemka said India’s deep spiritual roots are the country’s greatest source of strength. “What really gives me hope… is that we’re a country where the material was always less important than the spiritual,” he said. “The seeking of inner truth is more important than the external world. That ancient culture still exists.”

But leadership to solve environmental and social problems is still needed, something the fashion industry needs to help with, he added.

“The fashion industry has a huge voice on the planet. It’s very important to use this voice to actually force leadership,” Khemka said. “We’re on a burning platform, there isn’t any time. We need to use our voice for change as fast as we can.”

https://www.businessoffashion.com/articles/video/understanding-indias-ascent-shiv-khemka

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