Rajasthan aims to become a key hub for UK investments
The chief minister of the Indian state invited UK businesses to attend the “Rising Rajasthan Investment Summit” in the state capital, Jaipur, from December 9-11.
Bhajanlal Sharma (left) and Vikram Doraiswami
By Amit RoyOct 26, 2024
RAJASTHAN has become such a sought-after venue for destination weddings that there is now a three-year wait for suitable locations, the state’s chief minister, Bhajanlal Sharma, said in London.
He was in the city, leading a trade delegation aimed at promoting UK investment in Rajasthan in green energy, IT, education, automotive and electric vehicles, agro food processing, tourism, healthcare, real estate, fintech, mineral extraction and infrastructure.
Sharma invited UK businesses to attend the “Rising Rajasthan Investment Summit” in the state capital, Jaipur, from December 9-11.
Addressing a gathering in London last Thursday (17), he began on a lighter note by talking about destination weddings.
The topic is familiar to wealthy families like Gopi Hinduja’s, whose eldest son, Sanjay, married Anusuya Mahtani in Udaipur in 2015 – home to the magical Lake Palace Hotel. The wedding featured performances by stars like Jennifer Lopez. “She’s in love with me,” quipped Gopi, who had probably paid a generous fee for her appearance.
The actress Elizabeth Hurley sold the picture rights to Hello! magazine when she married the Indian businessman Arun Nayar in Jodhpur Palace in 2007. Even Nayar’s father was ejected from the premises when he was spotted with a camera in case he spoilt her exclusive deal.
Speaking in Hindi at the “Rising Rajasthan Investor Meet” held last Thursday at the St James Court Taj Hotel, Sharma said, “There are many weddings happening in Rajasthan these days. I visited South Korea, and someone there told me, ‘I want to marry in Rajasthan, but I hear there’s no venue available for three years.’ I assured them, ‘I can reduce that to a year and a half.’ They simply replied, ‘That’s fine, I’ll marry after a year and a half.’” “People around the world aspire to marry in Rajasthan.”
Rajasthan – literally, the land of rajahs – was formed in 1949 by merging the princely states of the erstwhile British empire. Many of their rulers had not been too keen on Indian independence, because they thought their privileges would be better safe[1]guarded under colonial rule. After independence, some rulers – notably Udaipur, Jaipur and Jodhpur – turned their palaces into luxury hotels to be managed by Ratan Tata’s Taj group. Others went into politics. Quite a few faded into obscurity.
The British love of Rajasthan was captured in such romantic novels as MM Kaye’s The Far Pavilions (1978). A less idyllic view of Rajasthan, as a land where women were very much second-class citizens, was offered in Mala Sen’s 2002 non-fiction book, Death by Fire: Sati, Dowry Death, and Female Infanticide in Modern India.
Several members of Sharma’s delegation pointed out that Rajasthan, with a population of 82 million, is India’s largest state with an area of 132,139 sq miles, which compares with the UK’s 94,354 sq miles and a population of 68 million. But unlike Britain, Rajasthan, with large deserts, has to cope with a shortage of water.
Sharma (centre) and deputy chief minister Diya Kumari (third from left), flanked by key delegates at the investor meet in London last Thursday
Sharma nevertheless provided an upbeat assessment of his state, with India’s third largest highway network. He said the Delhi-Mumbai freight corridor went through Rajasthan, where Nissan and Honda had set up auto plants. “From gold to iron to silver, what mineral is not available in the soil of Rajasthan?” he asked.
India’s notorious red tape bureaucracy had been stripped down: “Things get cleared in days, not months or years.”
Although Vikram Doraiswami is high commissioner for the whole of India, he gave Rajasthan an enthusiastic plug: “Everybody in the UK, when they think of India, broadly seem to think of Rajasthan. Think about your image in the UK. What India is all about: forts, palaces, tigers – Rajasthan. Sunshine – Rajasthan.”
“Beyond that, more seriously, it is also the state that has the longest and most intense connection with the key areas of interest for the future,” he went on. “By that, I mean conservation, sustainability and economic growth based on harmony with nature.
“The Rajasthani tradition has long been one of managing the environment, coping with the environment as you find it, rather than changing it for your own use, and therefore in living in harmony with nature.
“Rajasthan has therefore been a pioneer well before it was fashionable sustainable development. And today, Rajasthan is reaping the benefits of that through its extraordinary ability to leverage the sun and the wind in terms of renewable energy, in terms of its strengths in agriculture.
“When you look at a state that has a fair amount of arid area, it has been an extraordinary success story in being able to live in harmony with the earth and yet produce high quality food products.”
The Rajasthan delegation included the state’s deputy chief minister, Diya Kumari, the granddaughter of Man Singh II, the last ruling Maharajah of Jaipur. As someone with a graduate diploma in fine art (decorative painting) from the Chelsea School of Arts in London, she had no difficulty expressing herself eloquently in English.
“Today, we find ourselves on the brink of a transformative chapter for Rajasthan, one defined by extraordinary growth, innovation and collaboration,” she said. “It’s time to transform our dreams into reality.
Sanjay Hinduja (left) and his bride Anusuya Mahtani in Udaipur from 2015
“We are a state that has consistently embraced innovation, from technological advancements to state of the art infrastructure. Our progressive policies have attracted substantial foreign direct investment, solidifying our position as a leading force in economic growth. Today’s roadshow will be a testament to our upcoming partnerships to explore new avenues of cooperation in sectors such as auto and auto components, renewable energy, education and skilling, tourism. And IT-enabled service projects in these sectors are designed to position our state as a leader in these industries, creating opportunities for innovation and collaboration.”
She emphasised: “We are particularly focused on three critical areas: the clean energy transition, infrastructure development and manufacturing. As India’s largest state, Rajasthan is roughly 40 per cent larger than the UK in land mass, almost the size of Germany, and is home to nearly 82 million people, a youthful and rapidly growing demographic. Yet it is not just size or numbers that define our state.
“Rajasthan is an agrarian state brimming with potential and agro and food processing. We see a tremendous opportunity for collaboration with the UK’s advanced food processing technology and expertise in supply chain management.”
She urged British universities to open branches in Rajasthan: “There’s so much potential. Education is an area which would be great if UK comes into India and collaborates. You have so many Indian students all over the United Kingdom.”
She also mentioned tourism, though not the Jaipur Literary Festival, which has attracted thousands of people to Rajasthan over the years.
“Tourism is one thing very close to my heart, and I think the UK has the most amazing tourism sector,” Kumari said. “We would like to learn so much from you.”
The difference is that the UK trades on its royalty, whereas in India Indira Gandhi, as prime minister, abolished privy purses, titles and the princely order in 1971.
Details of how the UK could invest in Rajasthan were provided by Rohit Gupta, commissioner for industries and investments, who said the visit to London was the 11th roadshow the state had held.
“Under the banner of ‘Rising Rajasthan’, we have been to Seoul, Tokyo and Osaka. The delegation was led by the chief minister, as he is leading the delegation here as well. Other delegations went to Abu Dhabi, Dubai, Doha, Singapore, Switzerland and Italy. We just came from Munich, and now we are in London.”
Focusing on possible ties between the UK and Rajasthan, he said: “I’ll speak why we are natural partners and our relationships go beyond just economic synergies.
“Rajasthan’s GDP has doubled in the last seven years. We now aim to double it in the next five years. The state has also seen a healthy inflow of FDI in the last five years. It has been growing exponentially. Rajasthan is powering the green energy transition in India.”
Funds held in customer accounts by Indian clients rose by 11 per cent in the year to 346 million Swiss francs (£3.14m) and accounted for about one-tenth of overall funds.
INDIAN money in Swiss banks more than trebled in 2024 to 3.5 billion Swiss francs (£3.1bn), attributed to a rise in funds held through local branches and other financial institutions, annual data released by Switzerland's central bank showed on Thursday (19).
However, funds held in customer accounts by Indian clients rose by 11 per cent in the year to 346 million Swiss francs (£3.14m) and accounted for about one-tenth of overall funds, the report showed.
The increase in the overall funds follows a 70 per cent decline in funds by Indian individuals and firms in Swiss banks, including through local branches and other financial institutions, in 2023 to a four-year low of 1.04 billion Swiss francs.
This is the highest since 2021, when the total Indian money in Swiss banks hit a 14-year high of CHF 3.83 billion.
These are official figures reported by banks to the Swiss National Bank (SNB) and do not include money that Indians, non-resident Indians or others might have in Swiss banks in the names of third-country entities.
According to the SNB, its data for 'total liabilities' of Swiss banks towards Indian clients takes into account all types of funds of Indian customers at Swiss banks, including deposits from individuals, banks and enterprises. This includes data for branches of Swiss banks in India, as also non-deposit liabilities.
The total amount of CHF 3,545.54 million, described by the SNB as 'total liabilities' of Swiss banks or 'amounts due to' their Indian clients at the end of 2023, included • CHF 346 million in customer deposits (up from CHF 310 million at 2023-end), • CHF 3.02 billion held via other banks (up from CHF 427 million), • CHF 41 million (up from CHF 10 million) through fiduciaries or trusts, and • CHF 135 million as 'other amounts' due to customers in form of bonds, securities and various other financial instruments (down from CHF 293 million).
The total amount stood at a record high of nearly 6.5 billion Swiss francs in 2006.
However, the 'locational banking statistics' of the Bank for International Settlement (BIS), described in the past by Indian and Swiss authorities as a more reliable measure for deposits by Indian individuals in Swiss banks, showed an increase of nearly six per cent during 2024 in such funds to $74.8m (£55.7m).
An exchange of information in tax matters between Switzerland and India has been in force since 2018. Under this framework, detailed financial information on all Indian residents having accounts with Swiss financial institutions since 2018 was provided for the first time to Indian tax authorities in September 2019 and this is being followed every year.
Swiss authorities have maintained that assets held by Indian residents in Switzerland cannot be considered as 'black money' and they actively support India in its fight against tax fraud and evasion.
The UK topped the charts for money deposited by foreign clients in Swiss banks at CHF 222 billion, followed by the US (CHF 89 billion) and West Indies (CHF 68 billion).
Germany, France, Hong Kong, Luxembourg, Singapore, Guernsey and the UAE completed the top ten countries.
India was in 48th place, up from 67th at the end of 2023, but below 46th place at the end of 2022.
Pakistan also saw a dip to CHF 272 million (from CHF 286 million), while Bangladesh witnessed a sharp increase from CHF 18 million to CHF 589 million.
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In a statement, the central bank pointed to a recent rise in energy prices, citing the 'escalation of the conflict in the Middle East' as a factor.
THE BANK OF ENGLAND (BoE) kept its key interest rate at 4.25 per cent on Thursday, citing persistent inflation and rising risks from US tariffs and the conflict between Israel and Iran.
The decision, which was widely expected, came a day after the US Federal Reserve also left its interest rates unchanged, pointing to continued inflation and slowing growth in the United States.
BoE governor Andrew Bailey said the UK economy remained weak but signalled that rate cuts were possible later this year.
“Interest rates remain on a gradual downward path, although we’ve left them on hold today,” Bailey said. He added, “The world is highly unpredictable.”
Official figures released Wednesday showed that UK annual inflation eased to 3.4 per cent in May, less than expected. It remains well above the BoE’s 2 per cent target.
In a statement, the central bank pointed to a recent rise in energy prices, citing the “escalation of the conflict in the Middle East” as a factor.
Despite holding rates steady, analysts expect the BoE to cut at its next meeting in August.
“The Bank of England opens the door for a cut in August as it keeps one eye on energy prices,” said Yael Selfin, chief economist at KPMG UK.
The Bank of Japan also kept its interest rate unchanged this week.
Earlier on Thursday, Norway’s central bank unexpectedly cut rates, and the Swiss National Bank reduced its rate to zero per cent. Both cited uncertainty in the global economic outlook.
Last month, the Bank of England cut its rate by 0.25 percentage points as early signs emerged that US tariffs were beginning to affect growth.
The UK economy shrank more than expected in April, partly due to a tax rise on domestic businesses.
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FILE PHOTO: Passengers board a Pakistan International Airlines (PIA) flight at the airport in Kabul on September 13, 2021. (Photo by AAMIR QURESHI/AFP via Getty Images)
TWO of Pakistan's leading business groups and a company backed by the powerful military will bid for the country's ailing national carrier, a divestment the government hopes will kickstart the privatisations of state-owned enterprises.
The sale of Pakistan International Airlines will be the first major privatisation for around two decades, with the sale of loss-making state-owned enterprises a condition of last year's $7 billion (£5.5bn) bailout by the International Monetary Fund.
The government tried unsuccessfully to last year offload a stake in PIA, which is a major burden on its budget, but the sale was aborted because of the poor state of the airline and the conditions attached to any purchase.
Expressions of interest are due by Thursday (19) for an up to 100 per cent stake in the airline, with industry insiders expecting more bidders to emerge. They say the deal has been sweetened with a tax incentive and bolstered by signs of a turnaround in PIA's fortunes.
The Ministry of Privatisation did not respond to a request for comment.
Among those planning bids are the Yunus Brothers Group, owners of the Lucky Cement and energy companies; and a consortium led by Arif Habib Limited that includes Fatima Fertiliser, Lake City, and The City School, sources within the companies said.
Fauji Fertilizer Company, which is part-owned by the military, said it will be making an expression of interest, in a notice to the Pakistan Stock Exchange. Fertiliser production is a lucrative sector in Pakistan.
A group of PIA employees has also come forward to bid.
"The employees will use their provident fund and pension, in addition to finding an investor to place a bid. We're doing this to save jobs and turn around the company," said Hidayatullah Khan, president of the airline's Senior Staff Association.
The airline was restructured last year, offloading approximately 80 per cent of its legacy debt to the government to make it more attractive to investors. But bidders remain concerned about overstaffing and the ability to fire employees.
Last year's sale effort failed when the sole bid of $36 million (£28m) fell far short of a $305m (£240m) floor price.
Interested parties walked away before bidding, partly because the government was not willing to give up 100 per cent of the company, with bidders saying they did not want the government to remain involved.
Since then, PIA has posted its first operating profit in 21 years, driven by cost-cutting reforms, after making cumulative losses of $2.5bn (£2bn).
This success of the current process will depend on whether the government is willing to give up a 100 per cent stake, industry insiders said.
They added that a government decision this month to remove the requirement of paying sales tax upfront on the lease of new aircraft, which had been an impediment, will make the deal more attractive.
PIA resumed flights to Europe in January after the European Union lifted a four-year safety ban. The airline has also approached UK authorities for permission to resume services to London and Manchester.
The restoration of international routes is vital to future growth opportunities and successful bidders are likely to bring in foreign airlines as operators.
(Reuters)
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Choksi, accused in a bank fraud case in India, has been arrested in Belgium and plans to appeal for release, citing medical grounds. (Photo: Getty Images)
FUGITIVE jeweller Mehul Choksi accused India of orchestrating his kidnapping to extradite him on fraud allegations, with his lawyers telling London's High Court on Monday (16) that only India had the motivation and resources to do so.
Choksi – who was arrested in Belgium in April – is wanted in India over his alleged involvement in one of India's biggest bank frauds at Punjab National Bank, which in 2018 announced it had discovered alleged fraud worth $1.8 billion (£1.29bn).
Choksi is separately suing the Indian government in London, arguing that the state was responsible for his kidnapping in Antigua in 2021, when he says he was abducted and taken to Dominica in an attempt to extradite him to India.
India's lawyer Harish Salve said in court filings that "there is no evidence of India having anything to do with the alleged events".
Choksi alleges he was beaten in a failed attempt to extort a false confession and implicate India's political opposition, which he says points to state involvement in the incident.
Choksi's lawyer Edward Fitzgerald told the court: "The evidence points inevitably to India being behind this – they had the motivation, they had the resources."
Monday's hearing, the first since Choksi filed his case last year, was held to decide when India's application to throw out Choksi's lawsuit on state immunity should be held.
(Reuters)
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The Consumer Prices Index (CPI) stood at 2.6 per cent in March, down from 2.8 per cent in February, the Office for National Statistics (ONS) said. (Representational image: iStock)
UK INFLATION eased slightly in May but remained above expectations, according to official figures released on Wednesday, adding to speculation that the Bank of England will keep interest rates unchanged this week.
The Consumer Prices Index fell to 3.4 per cent in May from 3.5 per cent in April, which had marked a 15-month high, the Office for National Statistics (ONS) said.
Analysts had expected a bigger drop to 3.3 per cent.
The release came after separate data last week showed that the UK economy contracted more than expected in April.
Gross domestic product fell by 0.3 per cent, driven by a tax increase on UK businesses and a sharp decline in exports to the United States linked to president Donald Trump's tariffs.
Political responses
Chancellor Rachel Reeves said, "Our number one mission is to put more money in the pockets of working people."
Mel Stride, the finance spokesperson for the opposition Conservatives, said inflation staying "well above" the Bank of England's 2 per cent target "is deeply worrying for families".
The Bank of England is expected to leave its key interest rate unchanged at 4.25 per cent when it announces its decision on Thursday.
Mixed price movements
"A variety of counteracting price movements meant inflation was little changed in May," said Richard Heys, acting chief economist at the ONS.
"Air fares fell this month, compared with a large rise at the same time last year," he said. However, higher prices for chocolate and meat helped to offset the fall in motor fuel costs.
Danni Hewson, head of financial analysis at AJ Bell, said, "The escalating conflict between Israel and Iran has impacted the oil price in the past week, with UK motorists already bracing themselves for hikes and airfares also expected to soar."
Interest rate outlook
The Bank of England cut interest rates last month by a quarter point, its fourth reduction in nine months, as tariffs continued to weigh on economic growth.
Analysts expect the central bank to maintain that pace of easing until at least early next year.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said, "The fact that inflation has fallen back slightly... should bring some comfort to the Bank of England as it considers the next move for interest rates."
"They were expecting inflation to remain well above target at this point in the year, so it won't necessarily spark a rethink on rates.
"Before the announcement, the markets were expecting two more cuts by the end of the year, and there's a reasonable chance this won't move significantly on the back of today's news," she added.