Madhya Pradesh’s ‘resources and prime location’ draw UK interest
Chief minister of Indian state seeks investors in renewable energy, IT and agriculture
Mohan Yadav in conversation with
Mahesh Liloriya
By Mahesh LiloriyaDec 07, 2024
MADHYA PRADESH chief minister Mohan Yadav’s visit to Britain last month provided a boost for the central Indian state, following his meetings seeking investment worth `600 billion (£5.6bn).
Ahead of the Invest Madhya Pradesh Global Investment Summit in February 2025, Yadav’s three-day UK visit at the end of November was aimed at drawing investors to the state.
“Madhya Pradesh is emerging as a prime destination for UK investors,” Yadav said during a keynote address at an Investment Opportunities in Madhya Pradesh event in London last Tuesday (26).
“England and India have a shared legacy, which is democracy – the pride in which we feel equally in both nations. Madhya Pradesh is not just a destination for investment, but a partner in progress, offering limitless opportunities across sectors like agribusiness, renewable energy and logistics,” he said.
Yadav held meetings with Pramod Mittal from Ispat International, Sri Prakash Lohia from Indorama Group and Akash Paul from Caparo.
“This visit is significant on many fronts. Investors have shown great interest in the state’s opportunities and policies. These proposals mark a new chapter in Madhya Pradesh’s journey to sustainable development,” the chief minister said.
India’s high commissioner to the UK, Vikram Doraiswami, in his address at the investment summit, said, “Madhya Pradesh today is among the top five states in the ease of doing business rankings in India. The simplest and obvious advantage it offers is its location, it is connected 360 degrees to every part of India.”
Rajesh Rajora, additional chief secretary to the chief minister, said, “Madhya Pradesh’s strategic location, reliable power supply, rich natural resources, and abundant water availability have positioned it as a preferred destination for investors from around the world.”
Opportunities across information technology, renewable energy, engineering, medical devices, pharmaceuticals, artificial intelligence (AI), food, electronics, skills development and healthcare emerged as the focus areas as roundtable discussions were held with industry leaders and experts.
The UK leg of Yadav’s Europe visit concluded in Coventry last Wednesday (27) with a visit to the University of Warwick for a tour of the Warwick Manufacturing Group (WMG) and its successful tie-ups between academia and business. Yadav met Indian students enrolled at WMG on innovative programmes.
“We aim to conduct research activities and leverage this knowledge not only for industrial advancement but also for societal benefit,” he said.
According to the chief minister, “Over 30,000 students study here, and this institution plays a vital role in bridging the gap between academic research and industrial application. Our visit today aims to bring these global insights back to Madhya Pradesh to empower future generations.”
Investing in education and skills development is a key pillar of our vision for the future, Yadav said.
“To support our IT, healthcare, and semiconductor sectors, we are focusing on building a skilled workforce. We have established skill development centres and partnered with industry leaders to provide training tailored to these sectors.”
“Additionally, we are working to make our educational institutions more aligned with industry standards.”
Yadav visits the University of Warwick
The chief minister said, “By creating a strong pipeline of skilled professionals, we aim to meet the evolving demands of industries while providing our youth with opportunities to thrive in these highgrowth sectors.”
Yadav explained how the state has emerged as one of India’s most promising for investment.
“We have witnessed remarkable progress renewable energy, agribusiness, infrastructure and IT, making the state a hub of opportunities. With Asia’s largest solar park in our state, we are positioning ourselves as a leader in renewable energy. The agricultural sector has tripled its production in the last decade, showcasing the state’s capacity to meet global food demands,” Yadav said.
“Our business-friendly policies and world-class infrastructure are attracting global investors, and the feedback from the UK has been overwhelmingly positive,” he added.
“Sustainability is at the core of our growth strategy. We are fully committed to developing Madhya Pradesh as a model of sustainable development, particularly through the promotion of clean energy solutions.”
While in London, the chief minister also visited the BAPS Shri Swaminarayan Mandir in north London, where he offered prayers and sought blessings.
He said, “Our religion is beautifully diverse, with countless branches of Sanatana Dharma flourishing across the globe. Through these sacred branches, we honour our 33 crore deities in their various forms, each providing us with invaluable guidance for leading a peaceful and non-violent life.”
The chief minister, who spoke of his commitment to preserving and promoting Madhya Pradesh’s rich cultural heritage, also praised the BAPS organisation for its various spiritual- and community led initiatives.
THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.
Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.
Growth for March was revised up to 0.4 per cent from a previous reading of 0.2 per cent, according to the ONS.
The increase followed growth of just 0.1 per cent in the fourth quarter of 2024. However, GDP fell by 0.3 per cent in April from March, a decline affected by one-off factors.
Outlook for Q2 and pressure on budget targets
The Bank of England expects the economy to grow by about 0.25 per cent in the second quarter of 2025.
Finance minister Rachel Reeves is hoping for stronger growth to reduce pressure to raise taxes again later this year in order to meet her budget goals.
Thomas Pugh, chief economist at RSM UK, said weak consumer spending and hiring data in recent weeks likely reflected a short-term reaction to an employer tax increase and the US tariffs, many of which have now been suspended.
"Now that uncertainty has started to recede, consumer confidence is rebounding, and business surveys point to the worst of the labour market pain being behind us," Pugh said.
A separate survey published on Monday showed employer confidence in Britain had reached a nine-year high, with businesses more optimistic about the economy.
Interest rate cuts expected; energy prices a risk
The Bank of England is expected to cut interest rates two more times in 2025, which could support household spending.
However, a renewed rise in energy prices caused by further conflict in the Middle East could add pressure to the already slow-growing economy.
According to Monday’s ONS data, household expenditure grew by 0.4 per cent in the first quarter, revised up from an initial estimate of 0.2 per cent. The increase was led by spending on housing, household goods and services, and transport.
The UK property market saw increased activity ahead of the 31 March expiry of a tax break for some homebuyers.
Savings fall, manufacturing rises
Households drew from their reserves to support spending, with the saving ratio falling for the first time in two years. However, at 10.9 per cent, it remained high.
Manufacturing output rose by 1.1 per cent in the first quarter, ahead of the US tariff increase in April, compared with the final quarter of 2024.
The ONS also reported that the UK’s current account deficit widened to 23.46 billion pounds in the January-to-March period, up from just over 21 billion pounds in the previous quarter.
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RUSSIAN oil major PJSC Rosneft Oil Company is in early discussions with Reliance Industries to sell its 49.13 per cent stake in Nayara Energy, an Indian energy company that operates a 20-million-tonnes-per-year oil refinery and 6,750 petrol pumps, sources familiar with the matter said.
The deal, if finalised, would see Reliance overtake state-owned Indian Oil Corporation (IOC) to become India’s largest oil refiner. It would also provide Reliance with a significant expansion in fuel retailing, where it currently holds a relatively small presence.
The talks, however, are still at a preliminary stage and may not lead to a final agreement, primarily due to differences in valuation, according to three sources with direct knowledge of the matter.
Top Rosneft executives have visited India at least three times in the past year, including stops in Ahmedabad and Mumbai, to hold talks with potential buyers.
Rosneft is seeking to exit Nayara, which it acquired in 2017 (then Essar Oil) for approximately $12.9 billion (around £10.2bn).
Western sanctions have made it difficult for the Russian firm to repatriate earnings from its Indian operations. A suitable buyer, ideally with significant international revenues or foreign ownership, would be able to process cross-border payments more easily.
Reliance, a major exporter of petroleum products, fits that profile. However, a spokesperson for the company said: “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.”
UCP Investment Group, a major Russian financial firm, which holds a 24.5 per cent stake in Nayara, is also looking to sell. The remaining shareholders include Trafigura Group (24.5 per cent) and a group of retail investors. Sources said Trafigura may also consider exiting the company if a deal is struck, possibly on the same terms.
Rosneft had initially valued Nayara at $20bn (approximately £15.8bn), a figure considered too high by most interested parties.
Adani Group declined the opportunity, citing both the high price and its existing agreement with TotalEnergies to limit future investments in fossil fuels.
Saudi Aramco has also expressed interest in Nayara, which would support its long-term goal of securing a downstream presence in India, the world’s fastest-growing oil market. However, Aramco too finds the valuation steep. Talks between Rosneft and Aramco reportedly have not advanced beyond initial engagement.
Nayara may make the most strategic sense for Reliance. The company already operates two massive refineries at Jamnagar, Gujarat, with a combined capacity of 68.2 million tonnes per year, located near Nayara’s facility in Vadinar. Acquiring Nayara would help Reliance surpass IOC’s total refining capacity of 80.8 million tonnes per year and significantly increase its retail footprint.
Nayara’s 6,750 fuel stations contrast sharply with Reliance’s 1,972 outlets in a market with over 97,000 petrol pumps. “Oil refining alone is not profitable — unless you have marketing, you can’t make money,” said one industry official.
While Rosneft has reportedly reduced its asking price to $17bn (around £13.4bn), the valuation remains a sticking point for interested parties. No formal offers have been announced, and Rosneft has yet to issue an official statement on the matter.
(PTI)
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Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.
Here are the key issues at play:
HURDLES TO A TRADE DEAL
India's dependence on agriculture – a major source of rural jobs – has made it politically difficult for New Delhi to accept US demands for steep tariff cuts on corn, soybean, wheat and ethanol, amid risks from subsidised US farm products.
Domestic auto, pharmaceutical, and small-scale firms are lobbying for only a gradual opening of the protected sectors, fearing competition from US firms.
The US is pushing for greater access to agricultural goods and ethanol, citing a significant trade imbalance, along with expanded market access for dairy, alcoholic beverages, automobiles, pharmaceuticals, and medical devices.
"LACK OF RECIPROCITY"
Despite India offering to cut tariffs on a range of farm products, give preferential treatment to US firms, and increase energy and defence purchases, Indian officials say they are still awaiting substantive proposals from Washington amid Trump's erratic trade policies.
Indian exporters remain concerned about US tariff hikes, including a 10 per cent average base tariff, 50 per cent on steel and aluminium, and 25 per cent on auto imports, as well as a proposed 26 per cent reciprocal duty that remains on hold.
STRATEGIC ALIGNMENT
Indian policymakers see the US as a preferred partner over China but remain cautious about compromising policy autonomy in global affairs.
The US is India’s largest trading partner and a major source of investment, technology, energy, and defence equipment.
TENSIONS OVER PAKISTAN
India remains wary of deeper strategic ties after Trump’s perceived tilt toward Pakistan during a recent conflict between the neighbours, which raised doubts about US reliability.
GROWING INDIAN EXPORTS TO US
New Delhi is confident exports will continue to grow, especially in pharmaceuticals, garments, engineering goods and electronics, helped by tariff advantage over Vietnam and China.
India's goods exports to the US rose to over $87 billion in 2024, including pearls, gems and jewellery worth $8.5 billion, pharmaceuticals at $8 billion, and petrochemicals around $4 billion.
Services exports – led by IT, professional and financial services – were valued at $33 billion in 2024.
The US is also India's third-largest investor, with over $68 billion in cumulative FDI between 2002 and 2024.
US EXPORTS TO INDIA
US manufacturing exports to India, valued at nearly $42 billion in 2024, face high tariffs, ranging from 7 per cent on wood products and machinery to as much as 15 to 20 per cent on footwear and transport equipment, and nearly 68 per cent on food.
According to a recent White House fact sheet, the US average applied Most Favoured Nation (MFN) tariff on farm goods was 5 per cent compared to India’s 39 per cent.
(With inputs from Reuters)
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Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)
VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.
The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.
According to Vedanta's exchange filing on Thursday, the lenders involved in the deal include Standard Chartered Bank and its Mauritius unit, First Abu Dhabi Bank, Mashreqbank, and Sumitomo Mitsui Banking Corp.
Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt.
The company lowered its net debt by £876m, bringing it down to £8.1 billion in fiscal 2025.
(With inputs from Reuters)
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Trump said that while deals are being made with some countries, others may face tariffs.
US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.
“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.
The president also mentioned a trade agreement with China but did not provide details. "Everybody wants to make a deal and have a part of it. Remember a few months ago, the press was saying, 'You really have anybody of any interest? Well, we just signed with China yesterday. We are having some great deals," he said.
‘Some we are just gonna send a letter’
Trump said that while deals are being made with some countries, others may face tariffs. "We're not gonna make deals with everybody. Some we are just gonna send a letter saying thank you very much, you are gonna pay 25, 35, 45 per cent. That's an easier way to do it," he said.
Trump's comments come as an Indian delegation led by chief negotiator Rajesh Agarwal arrived in Washington on Thursday for the next round of trade talks with the US.
Talks ahead of July 9 deadline
Both countries are working on an interim trade agreement and are aiming to conclude it before July 9. The US had announced high tariffs on April 2, but the Trump administration suspended them until July 9.
Agriculture and dairy remain sensitive areas for India, which has not included dairy in any of its free trade agreements so far. India is cautious about offering duty concessions in these sectors.
The US is seeking duty reductions on items such as industrial goods, automobiles (especially electric vehicles), wines, petrochemical products, dairy products, and agricultural goods like apples, tree nuts, and genetically modified crops.
India, on the other hand, wants duty concessions for sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.