 Before we commence the second two panels of today's conference assessing the state of U.S.-India relations, economic relations, we're going to take a look first at the concept of smart cities. Now before jumping into it, I know we've got a number of folks that just joined after the luncheon session here, and I expect it's going to continue to grow as we head towards the Honorable Finance Minister's speech at the end of the day. Very excited to be the first organization to host him on his first trip since taking over that role. But I just wanted to take the time again to note the great cooperation that we had leading up to this point with both the Wadwani Foundation, which I share a parentage, and the Ananta Aspen Center from New Delhi in organizing this program, and also it couldn't have been possible without the financial support from a few groups that came forward, Corning, Prudential, Oracle, Tata and Taj. So if you see folks from those companies milling around, please do say thanks for the lunch and thanks for having some of the best hotels in the world. So after the Modi government gets elected, after they take office, smart cities. It's a concept that existed beforehand, but they added a lot of new energy to it. Certainly it wasn't talked about that I saw anyways in quite that context in India. The announcement that they wanted to develop 100 smart cities. And I think at that time, too, the U.S. government was so interested in eager and trying to restart relations, which had been rock bottom a year ago, that when we saw these big grand initiatives get announced, we had to think, what can we do to support that? Well, that kind of gets back to two other questions. What the heck is a smart city, and who pays for it? I'm sure there's a lot of other great questions, too, but these are some of the things. What is a smart city? A lot of different definitions out there. A lot of ideas on how to finance it, what might work and might not. The U.S. government has announced that three smart cities in India we're going to partner with, Allahabad, Ajmir, and Vizag. So there's three that we've actually officially voiced our support for actually helping develop. A few announcements related to that, but I think most of the work has yet to be done. So I thought, what a terrific idea to bring together some of the most, some of the smartest and most creative people that I've been able to see in the horizon, thinking about and looking at smart cities, and have a conversation about what constitutes one, what does not constitute a smart city, and what role might the U.S. be able to play, both from the corporate side and from the government side. So four terrific speakers here to cover this topic today. Starting on my right and your left, Akhilesh Tolotya, who joins us all the way from Mumbai. We've actually got, I think, the most traveled panel here today. I'll still count you, South Africa, just to add to the mileage on this. Starting from Mumbai, at least thematic research and market strategy reports on Indian equity markets for KOTAC. Also noted author with his first book just came out called The Making of India. And I'd devour all the stuff, since we first met in Mumbai a few months ago, everything that he puts out. Tying together these big changes that are happening in India with what it means for investors. And a good day, I hope that I can play that role somewhat here from Washington. So Catherine McCallop-Thompson from Bechtel. So responsible for integration of sustainability into these proposals and projects. Of course, Bechtel is a hand in many of the greatest infrastructure projects around the world. Denise Lee, you know, when I first started looking around at what is a smart city, a lot of your work and material was some of the first stuff that popped up when I did that. So when we decided to add this, I reached out to my good friend Jim Brady, who's part of our advisory board here at the foundation, and said, who is this Denise? You know, I'd love to meet her, but she's in South Africa. But she volunteered to move to the United States in order to make this happen. So Denise, great to have you here as well. Only a partial joke on that. You'll notice her Boston accent. I told you I'd weave that in. And Soparno Banerjee, who joins us from Hewlett Packard. Soparno, I just met for the first time recently and I just couldn't believe we'd never crossed paths because we go to the same barber. If I was sharing the next panel, Rustam from Corning, we get the same joke too. He's a member of the office of the CEO and is responsible for growth in HP's public sector business. And prior to assuming this role, Soparno was vice president for strategy for HP's work enterprise group in Asia Pacific and Japan. So that's the order of the panelists as well. So let me turn it over first to Akhilesh. And you can speak from here or the lectern, whichever you prefer. I'll just head out there. Great, great. Thank you, Rick, and thank you, everybody. This is, I hope I'll wake you up from your lunch and session. When Rick first reached out to me and said that we want to discuss the smart cities in India, my first question to him was, do we even know what smart cities is? And I think that is, at least when I come in here, one of the things that I want to take away is to get a sense of what India would want to do and take learnings away from here in terms of what India can do in respect of developing its smart cities in India. I think it's interesting that the US has already come ahead and identified three cities which want to become smart. So let's see how things go ahead from here. What I wanted to do to set, in some sense, the tone for the panel was to give you a broad sense of where things stand with respect to organization in India, how cities in some sense are organized in India, and what are the challenges and opportunities that could open up? What are the sort of numbers that we're looking at in terms of funding, et cetera, and how things could go ahead? A quick point about organization is that in the reason people come into cities across the world and especially through in India is that cities do provide a much better economic opportunity than what rural countryside typically ends up providing. In the earlier panel, there was a discussion about how agriculture has been growing at about 2% and how people want to potentially be a part of the growth story in India. And cities are in some sense a very logical place to come to in terms of the growth that would potentially come in here. I think one of the key advantages of coming to the city is that cities are in a much better position to provide public utilities, something that becomes very difficult to provide and powerful on rural India. Rural India or Indian villages number 600,000 to provide the sort of facilities that are required to reach out to such a large number of places. It just becomes a big challenge. A city, you can derive a lot of scale benefits. And I think that is in some sense the key theme that we will see as we go ahead when we talk about the smart city story. For me, when I think about the sort of public utilities that cities could provide much better, I look at what in Indian politics has been a slogan about Bijli, Sardak, Pani, which is power, water and roads. And I add to that Shiksha, Swasti and Suraksha, which is education, health, and security in general. So to that extent, these six services form the bedrock of why people would move into a city after having figured out that there is a much better economic model to move into cities, much better jobs, etc. that are potentially possible. And I think as we talk about where smartness will come in, I think the smartness will potentially come in, in how we deliver some of these goods to people in urban cities. The order of magnitude of urbanization in India is actually somewhat disappointing for observers. If we go back all the way back to 1971, India was about 20% urbanized. If we go back to our census numbers then, which is broadly the number for China in 1971. Since then, the 2011 census tells us that we have moved to about 31% urbanization. So that's about 12 percentage points increase in urbanization over the last 40 years. In the meanwhile, China has moved from about 20% to about 51% in the same 40 year time frame. I think one of the key reasons why urbanization takes place is simply because you require new places, new cities where you would do a lot more manufacturing, you would do a lot more industrial work. India has quickly moved from being an agriculture economy to becoming a services dominated economy. And in a services dominated economy, it just makes sense to move to cities which are already thriving, which are already big, rather than go out to newer cities. And hence, in some sense, the story of India's urbanization has not been a story of creating new cities. It's been a story of mega policies becoming much larger. So you have a Delhi NCR region which expands out into four or five older cities, which merge into one. Bombay becoming a much larger city taking into account Navi Mumbai, Thane areas, Chennai expanding out, Bangalore expanding out. But you would rarely hear of a new big city coming up in India. And I think that manifests itself in saying that the top eight to 10 cities would account for almost 25% of India's urban population. This number is very, very different across China or the U.S. where a much smaller proportion of people would live in such mega policies, but there will be a large number of cities in the one to five million population range. And that is what I call the missing middle. In India, you have very few cities which are in that range. You either have a large number of very, very small towns and villages which are morphing into becoming small cities or hubs where a lot of villages would congregate, or you would have mega policies. So to that extent, I think the way urbanization is spanning out in India is that you focus a lot more on the top eight to 10 cities. That's where bulk of your urban population would be. And there is a large chunk of smaller places which are now beginning to get slightly more densely populated. While I did mention that India's urbanization rate is about 31 percent, if you go by government definitions or census definitions of how things stand, we have a very curious way in which we define urbanization in India. And one of the aspects or one of the rules of defining urbanization is that in a place for a place to be called urban, 75 percent of the people living there or men living there need to work outside of agriculture. Now, given the fact that more than half of India is indeed employed in agriculture, that is a very stringent benchmark that we have set for ourselves, and which is where we end up undercounting urbanization significantly. If you were to do away with this restriction and look at just the fact that people living densely together would be an urban area, the official definition would then in some sense move from a 31 percent urbanization to close at about 49 percent of urbanization. So what you do have is a lot of places where people are living in densely populated areas, but these are towns which are 5,000, 10,000, 15,000 people strong. They are not really cities. They are not places where you could potentially provide the scale benefits for providing the six public utilities that I was talking of in any meaningful manner, but they are still not large places, and they are not large places where some of these scale benefits would come in. So I think when we think about urbanization in India, it's not the same US or the China story where you have a large number of maybe 100 or cities through which you will provide public utilities. So I think this is an important distinction to keep in mind, especially as we talk about big numbers for smart cities. The other interesting aspect of cities in India is the fact that Indian cities are really puny. I just couldn't get any other word for it. They are just very, very small in size when it comes to cities across the world. A Mumbai, sorry, I'm still used to calling it Mumbai, Mumbai's land area, if you go by official records, is only about 550 square kilometers. That compares with 3 to 8,000 square kilometers for London, Tokyo, New York, et cetera. So in a sense, we still live in very, very tightly packed cities, and that is not a surprise, simply because I think we have thoroughly under-invested in our ability to move people across longer distances. Even in a small city like Mumbai, and I by small, I mean geographically small, it still takes a lot of time for people to move from one place to another. And again, the point that we mentioned is that the reason people are coming into cities is that they find better jobs. If you make commute to jobs pretty long, people are forced to pack and live them closer. Hence, one of the corollaries of developing a smart city is to develop very smart transportation, fast and cheap transportation, such that people could move longer distances, and if people could indeed move longer distances, you would have much better quality of life. The average house in India is about 80 square feet. The average per capita housing available to people is about 80 square feet, and I joke that human rights requirements in the US for prisoners is 60 square feet. To some extent, we are living in really very, very small apartments in India, and the reason for that is we are simply unable to commute over long distances. So we need to live very close to our work in terms of that we would travel, but still in terms of time, the amount of commute that we do is still very, very large. So one of the key aspects of how cities will potentially start to become smarter is how they begin to transport people over longer distances in that, and how they begin to think of scale in a sense. One of the other things that I wanted to point out is across the world over the last century, cities have lost density meaningfully, which goes back to the point of saying the cities have expanded out or the citizens in the cities have increased. And if India were to indeed see the trend of de-densification and we start from a very high base of density, India will really need to rethink about the size and scale of Indians' urbanization. Our numbers suggest that we would require anywhere upwards of 5 to 10 Mumbai's being created, anywhere between 3,000 to 5,000 square kilometers of new area being created every year, as opposed to the 1,000 to 2,000 per year number or the one Chicago year number that is typically what is spoken of. So I think in terms of scale, we really need to re-envision the scale that India is talking of in terms of the size of urbanization that will happen. A quick point to someone who would worry about India's agriculture in that sense, India's urbanization today is less than 3% of India's geographical area. As we were discussing in the earlier panel, agriculture is almost 48% of India's land mass. So even if India's urbanization were to even double or triple from here in terms of land area, we would never even reach into double-digit land area required for urbanization. So I think the thought debate that gets created as to is urbanization is a challenge to agriculture. I think we should just take clear of that and realize that there is still scope for cities to expand out meaningfully. Which takes us back to the point of how do cities become as a citizen and as someone who would think about urbanization, it goes back to the point about how do you use the scale benefits that come in from making of a city in making life much easier for people. And I go back to those six points, the Bijli, Sadaq, Pani, Shiksha, Swasti, Suraksh and the reason I say that in Hindi is because these are catchphrases which are now beginning to get the attention of politicians in India. So whether it's power, water, roads, education, health and security, we should use some sense of the scale benefits that some of the cities could provide and if you're able to use either technology to do that or much better quality of information that is now available to plan for some of these things, I think life could be much easier for citizens. They would spend a lot less of their time and energy and money in trying to live in a city and could genuinely enjoy the benefits of having come to cities from rural India. The challenge that India has faced in providing some of these basic services has been that the government has in effect taken on these responsibilities of providing some of these services but has meaningfully failed, at least in urban centers, to provide some of these utilities to people and what that has done is it has imposed what I like to call a private cost of public failure. The fact that publicly we are not able to provide many of these things, people just internalize the cost. They take their own power in some cases, they rely on tanked water, they rely on their own ability to transport themselves rather than use public transport or they would go to private schools etc. I am not recommending a nationalization of many of these things but all I'm saying is that these have created opportunities for people, for companies in India to provide some of these services and I think those are some of the growth opportunities that investors in some sense love but they have not been able to create the scale benefits that urbanization could have created in India and I think that is where a meaningful amount of discussion and debate and I think ideation could help from here. Our numbers seem to suggest that if we are going to provide people some of these utilities etc. and provide much better quality housing and transport, India would require upwards of 2-2.5 trillion dollars over the course of this one decade and I think those are meaningfully large numbers for context India's GDP is broadly about 2 trillion dollars today so we are looking at anywhere upwards of 10% of GDP being invested every year in the share act of urbanization in India. Those are large numbers those are numbers that I don't think the government currently has the fiscal budget or the mandate in some sense to be able to foot. So these would be interesting opportunities that would open up. I've listed down some ways in which the government could raise finances and there are ways in which potentially private companies could come in and begin to make decisions of the fact that there is there is a willingness to pay in people when they get better quality of products and services when it comes to urbanization and I think that's the broad lay of the land as it stands with respect to urbanization and as I said I would want to educate myself as to how we will become smart from here. That's terrific. Thank you. Well a great scene setter on the numbers that are right, the numbers that are wrong and the opportunity that exists through all that. Thank you Latif. All right. A couple of slides. So when I think of cities I think of them really simply in terms of them being people and infrastructure maybe because I work for fact knowledge builds infrastructure. But smart cities really connects those too. In new ways using the information technologies to improve lives. So that's really kind of what it's all about and then making sure you're set up to take advantage of that. So technology really is to provide real and tangible benefits to infrastructure to people and to the environment through a better, cheaper and more sustainable solution. That's really what we're talking about here. But I think also we should include the term resilient in terms of what we're thinking about because infrastructure is a long-term investment and being, you know, we're under a world with a lot of changing circumstances potential climate change impact all kinds of disruptions sudden perhaps relocations or migrations of people or gradual that suddenly become much more of a problem than they're anticipated to be or present a lot of opportunities as well. So if we can challenge ourselves in the implementation of smart cities to provide resilient infrastructure to address things like water scarcity sustainable design and construction urban growth and electricity with the increasing demand that comes and then, you know, a lot of cities have the official electricity consumers and then the unofficial electricity consumers so they're trying to use technology to help in scheduling and making sure that brownouts are not frequent because of these irregularities we might say that is a way that it can be used in applying to really make people's lives better. And so if we think about the global trends that are happening that they really do require a step change in the way we design and construct and operate systems and structures in order to benefit society for the long term and mega cities have to consider the cost and scale of disruption caused by things like energy system failures and how would we future proof urban energy systems and there's a lot of ways to do that in both the provisional electricity and the management of them. Is there something I have to push? Thinking about some of the mega trends in the way that we can respond in what the opportunities are in smart city there's a lot of responsibilities and a lot of opportunities for the different sectors and the different pieces of the puzzle these are all ways that smart city technologies can improve the delivery of services can broaden the delivery of services and attract investment because it's face at nicer cities are places where then more people want to come and do businesses and invest so that makes a difference as well and they really kind of touch on all aspects. And so we should be focusing on things that either make people's lives better or that are efficient and certainly cost effective. And when we think about cost effective too we need to really think about the long term so a lot of smart city technologies are things that help in the operations and maintenance phase which can be a real problem because if you spend all this money to invest in infrastructure and then you don't operate it well or maintain it then you sort of lost the value from that investment. Mentioned resiliency and really excuse me all of this to make people's lives better. There's no doubt that there are a lot of exciting opportunities and benefits in smart cities but before you get to that you have to do a lot of thought and a lot of planning. And what cities sometimes lack is an understanding of the broader process needed to drive to lead them to the changes that can end to this fantastic technology driven and state. And so of course one of the most difficult challenges in that is really defining the vision of a smart city so what does it mean in different contexts and certainly a mega city version and definition is going to be different than a population of 500,000 or a million. And then having a coherent direction of where the city should go. This of course is made more difficult through the complexity of the political process and competing priorities and needs and there's always more ideas than money in the future that we're investing smartly and in ways that really can start to generate some economic returns that can be cycled back into the program. And I think it helps if you've got a strong champion. So for these 100 cities programs I hope that each one of them will be led by a strong champion who gets the different departments united and that's always difficult to do governing at any level is to involve the different sectors and the different departments because that's what smart cities is about integrating a lot of the different disciplines and application of technologies in a way that not only puts it all together but then can use it and leverage it as you're going along so that you get the most benefit out of it. It does no good to put fancy things in place and then let them fall apart. So these are currently require collaboration and a team approach which is not always easy to succeed and the champion needs to create accountable teams that are motivated to achieve success. And I mentioned these things because for companies it's a lot easier to work with customers or cities or governments that have all of this together. So when you do then you're not constantly changing direction, you can provide the best advice and you can implement things in the easiest way. And then another recommendation would really just be to start with small winds to generate momentum. Some easy places to start are things for smart street lights that direct traffic to prioritize public transportation for example. Those are easier to put into place, they're not too complicated and they're really people can recognize the benefits they derive from that and then you can sort of build from there. So just a couple of little diagrams to sort of what are we talking about in a little more detail. So you can start at the micro level at smart buildings because the smarter buildings can be in terms of reducing energy demand or water demand or treatment of those issues of water supply etc. Then you're having less overall demand when aggregated across the whole city. So buildings, making buildings smarter and working together is a really good start. Things like smart energy, everything from interconnection standards with different distributed sources of energy and a lot of those can then be renewable. Smart telecommunications which is often kind of the backbone that puts it all together but those can be leveraged to do things again like to reduce energy and water use to provide better services and provide ways of communicating with the population about different services and availability and things to take advantage of and maybe distribute sometimes the load a little bit more smoothly instead of the peaks that can create the congestion problems and challenges for systems as well as for people. And then smart transportation which we're involved in a little bit more but again like reducing trip time with synchronized traffic lights and smart parking and public transit coordination and making this information more readily available so that people have more choices and the ability to use that information to make their lives better. So these smart cities are sort of this interplay between what government does on its side and then what people do on their side and then working together. And then of course things like smart water and wastewater and of course water is going to always be a big issue and will continue to be a bigger issue both on the supply side of clean water provision and then on the effluent side in terms of both wastewater and storm water management and so things like using systems and sensors that can identify leaks because most municipal water systems are plagued by an abundance of leaks which results in all of the cost of cleaning and delivering the systems a good portion of those are lost. So those can make a big difference as well. So for us as planners up front as well as then implementers of infrastructure so we're thinking about things in terms of these basic steps essentially so collecting the data and in many countries and places that is a real difficult challenge. So sometimes you have to be a little more creative in your data search using either international sources or old fashioned talking to people and getting a sense of how typical is this or what was it like in the past and then kind of cobbling things together a little bit. So it doesn't just because you don't have data from obvious sources doesn't mean you don't have data to use. And then communicating those information amongst each other kind of verifying and validating and then crunching the data and making sense of that in order to do in order to do the planning that needs to be done. So our approach really we try to take a holistic approach and so we start from master planning is something that we can offer and building then plans and things in alliance with different vendors and the city itself in order to implement things so there can be certain initiatives on its own but mostly it's really on the backbone of other things. So when you're creating water infrastructures or transportation infrastructures or energy infrastructures you're looking at what is the most cost effective and efficient and what need are you getting at in order to apply some smart cities technologies into the infrastructure and things that we're designing. So I'm going to talk about just a couple of examples in case studies so I'm recently back from two years in Gabon which is a small-ish country on the western coast of Africom and Quater and one of the things that we did in London King at the city that is kind of not suddenly but recently grown from a couple hundred thousand to nearing a million people and that's about half the population of the country. So of course that has been developed in a very chaotic and unplanned way as people come and just kind of settle in and build whatever they can. So I'm thinking about ways to deal with that and that's a common problem for a lot of countries and so we looked at one neighborhood which is kind of the center of town and using smart technologies like a software called Infraworks that enables you with the GIS based program that enables you to layer upon information. So looking at the natural topography of the area which is hilly and then using the boundary there of the watershed and thinking about things not so much as a political boundary but systems boundary and then what kind of improvements can you make so in terms of road developments then matching that need for infrastructure and roads with the provision of utilities and wastewater and stormwater all as a system and then what kind of things can you put into place in a smart city's way in a place that isn't so sophisticated and that doesn't have a lot of data and so what really makes the most sense and so the good place to start really is public transit which is just being reborn there and so making that more attractive and convenient and easy and then other things in terms of water and wastewater planning and sensors and then another one is using technology soft technology which are less about information communications but things like the smart code which is a form-based code that focuses on communities around walkable and mixed use so that there's parks and schools and civic spaces all in the same neighborhood instead of just saying okay the city needs 5,000 housing units well how are you going to organize those housing units and how do you create it in a way that is smart and it makes sense for people and from an investment perspective so the government can invest in the infrastructure and the private sector can invest in the commercial and the housing development and so and putting in the first community wastewater treatment system in that community and using smarter technologies to do that down to things like solar powered street life with sensors and that can come on as needed as opposed to being on all the time so even kind of smaller and little things. Another example we talked about manufacturing and services in Saudi Arabia as a company developing phosphate production in the north and so with phosphate as the core and then all of the peripheral industries that are going to develop that means that then you're going to create a new city in order to serve all of that and so master planning that using all of these principles and thinking about all of the systems together all of the infrastructure that's needed together and using smart concepts in urban planning and all and then of course in that location extensive use of alternative energy and water reuse and smart technologies being part of that and the purpose for that really is to diversify the economy and create jobs and boost the private sector involvement and investment. Another example is in the various economic cities that are being done around different themes and areas so one of them being the King Abdullah Economic City and focusing again on all the interaction and all of these technologies and a few more resources available there as opposed to a developing country context but it just shows all of this can work together no matter what the context you're using. So I just wanted to mention that Bechtel is a member of the Smart Cities Council so anybody really interested in this topic should look further to the Smart Cities Council was founded a couple of years ago and really as an advisor and as a market accelerator so involving companies and cities and governmental entities to come together and kind of put some boundaries around the vision and the definition of Smart Cities and to advance them in a way that's really productive and the site provides all kinds of examples of how Smart Cities are being implemented around the world in both the developed countries and the developing world and if they're working hand in hand now I understand with the USTDA to produce kind of a readiness guide with the Government of India to address challenges that are being faced in terms of water and energy resources, population growth, migration, pollution so when you think about some of those issues as your starting point then how can some of these Smart Cities technologies be used to help solve those problems and then finally so a good starting point for governments in particular is the Smart Cities readiness guide this is available for download on the internet it's kind of a checklist approach for our cities ready for it and what do they need to do to get ready to take the most advantage they can of some of these partnerships and technologies and one of the things I've learned in the last several years especially is if you don't have a plan you don't really know where you're going and the more you have a plan then you can see whether proposals fit into your plan as opposed to just taking, okay there's an opportunity here, there's an opportunity there, there's an opportunity there and then if they don't all come together then the scarce resource of money isn't being used to the advantage as it really could be so I think tools like this are a really good place to start not only for cities but also for partners and potential partners with cities to understand a little bit about how to go about with a roadmap and a strategy that's all been vendor neutral guidance and so on but it's a really good tool so in closing I'd just like to offer that I hope that the 100 smart cities initiative is implemented in a way that results in real resilient and sustainable cities through smart deployment of technologies in an organized and collaborative program and I'm sure that it will thank you great so there's a million ways to make a city smart but I think a point you made early on which makes sure that it's data led decisions you know don't follow the cool sexy thing but make sure that every step that you take on this especially as we talked about with funding is relatively limited deploy it where it's going to make the most impact so now turn it over to Denise please thank you so in my experience and I've worked on a number of smart cities projects across Africa and we have a very very strong footprint within India and our team is busy engaging directly at the moment as well my experience has been that there is no start and there is no end for a smart city it's a journey right and with smart cities it's really about smart citizens and as long as the people that are coming together and pulling it together are evolving and growing whether you've got 10 people in this city or you've got 20 billion in a city they still have the same fundamental needs and desires as you and I do the only difference is the fundamental infrastructure that surrounds them is going to be a little bit different so I think at the starting point when we talk about smart cities it needs to be citizen centric you can't start with a we're going to make money with it or you know we are going to grow our geographical footprint or whatever it needs to be if I get up in the morning and I pick up my smart phone what do I want to do if there's a problem how do I how am I enabled how do I go about making it better because that's the starting point the predicted trends are is that the power is passing from the state led governments down to provincial governments down to local governments and then to cities and that's anticipated and it maps the urbanization map that we've seen with the predicted trends to 2050 which just makes sense right so how does that actually work then we need to start learning to do more with less we are running out of natural resources so whether it's about whether it's about there's not enough water and we need to implement new technologies to measure the water it's also about retaining water and how we can use water better and the filtration of that water the same with electricity South Africa and Africa is notorious at the moment for having brown arts and absolute black arts rolling black arts at the moment and it's dreadful because South Africa produces the majority of electricity for the whole of the continent it's a bit of a concern so we have a number of solar wind farms that are cropping up and we're starting to look at alternative sources of energy and that's absolutely relevant and if I have a look at what's happening with India at the moment they start ups that also have also identified gravity based energy systems that are now coming into the cloud as well that are now looking to be exported to the rest of the world which I think is phenomenal we also talk about cohesion and integration the government the people and private sector have to come together it's not about it is your responsibility and this is my responsibility and we're going to kind of come together we all have to take equal ownership in terms of what needs to happen and with that we have to identify what the problem is and what are we going to do about it now if we if we have a look at trends in emerging territories like the BRICS countries and it's a Deloitte report excuse me and they've linked the cell phone usage so what has happened is they've increased mid to low class individuals roughly 10% and they've given them access to cell phone technology that they never previously had and that directly quantified to an increase in the GDP of 1.2% growth and what that means is that the more people are connected the more they have access to the more that they want to do and it brings out the inner consumer now that in itself links back to the fact that once you have the connectivity which is a fundamental underpinning criteria for a smart city because you need that connectivity once you have that where do the boundaries of that city stop where do they start because I consider my phone and I can access something in Algeria right now and I'm pretty restricted in terms of the technology that I have at my fingertips which is amazing but it's also fairly daunting in its own right because that ability allows me to cross multi jurisdictions and we start talking about the creepy issues around governance around legislation so I think when I think back to this morning session there are a couple of points that resonated with me around trade around trust I think the words that we used this morning specifically were transparency predictability Secretary Nivelli spoke about the legality it all fundamentally comes down to trust and the minute that the trust is enabled between one country and another trade will flow naturally from that point it must happen so in my opinion and understanding the respective smart cities engagements that we've worked on the first thing that needs to be considered in a smart city or a smart citizen structure is what are you doing with smart governance what is the legal and the regulatory framework that you're adopting the fundamental principle is that information is shared through data it's the breakdown of silos between the different areas sharing it and being able to make data driven decisions the predictability and understanding the 360 degree view of the situation now all that data is kind of just randomly floating around in cyber space and sitting in someone's cloud some way what is happening from a cyber security perspective on that is that protected is it meeting all the respective legislative requirements of all the folks that are going to be tapping into that now there are different data privacy laws between India, between the US between Europe etc who is protecting that, who is safeguarding that and who is ensuring that that data is not potentially getting into the wrong hands because that's not really a smart city then data is predicted to be the next natural resource out there and absolutely information is power but when you share it it's an abler on every sense so if we have a look in October 2013 the UK Department of Business and Innovation did a survey across six cities and those six cities the survey was specifically focused on how they are delivering smart technologies they're not smart cities in the truest sense where they have every single tenant of a smart city with smart banking, smart finance, smart water, smart animals etc it was more about what have they done to uplift that community on some level and taxation came up as a discussion point this morning if you have a look and it actually references the survey in Chicago one of the areas that was uncovered as a fringe benefit if you will was that there was an untapped economy in terms of trade of cash there was no regulation on it there were no taxes that were happening on it and with the adoption of digital technology and trading now there was an order trail that was created and a whole new revenue stream from a taxation perspective that was never never even tapped into so that is one area from a revenue perspective that you can have a look at now with India there are a lot of cities of the mega cities potentially you have a lot of slums and you also have a lot of people that are rural and will continue to be rural how do you enable them how do you enable those individuals within the community if they are not living in the large cities you need to take the technology to them they need to be enabled now whether that is that they are getting education through some cloud based device like with google education excuse me with google education I beg your pardon I am getting a call with google education or you see other companies that are popping up startups across Africa across India as well where they are taking physical kiosks that have been developed SMEs that are actually taking them into the slums into the townships and folks can come to them and they can get there online they can pay for the utilities online they don't need to go all the way into the city they can access their water they can access cell phone they can access friends and family and they are uplifting the community because now all of a sudden you can actually track what is happening with the community you can track where the trade is if there is an area where there is potential issues around crime purely based on what is happening on the digital network of that space you can actually track what is the interest in that area and police forces can be deployed into that area to uplift it when we talk about government planning if you look at the city of Abu Dhabi in the UAE they won an award a couple of years for a planning application from a geospatial perspective in terms of city planning so that they can erect their smart cities infrastructure around schooling some schools depending on the subjects and depending on the focus areas are better positioned in certain areas to others some communities would rather have a university built focusing on mathematics and science subjects versus another one is more on veterinary science and they have different focus areas understanding the data from those schools understanding where to put those schools that in itself starts a sustainability model for tomorrow it's those tenants, those thoughts that need to be considered when you start talking about a smart city and a smart a smart person but all of this needs to be regulated because how do you know that what you're doing is going in the right direction how do you know that the data that you're getting is the correct data how do you know that someone has a potentially tapped into that how do you know that the skills that you need today that you think you need today aren't suddenly evolving into skills that are not even readily identifiable for tomorrow if you just have a look at the number of careers that are available today that weren't even available ten years ago can you imagine what it's going to look like in ten years time as a society we are all responsible individuals in our respective countries we are all global citizens if I just listen to all the different accents and all the different folks that have been speaking today in this room we have a plethora of cultures sitting in this room because we all believe that this is relevant we all have a passion for it we understand the importance of it and we all need to get in and make it work because it's the future of our planet well that's a pretty important point to I think conclude your remarks on we talk about safety is the key I think anytime that a business actually calls for regulation you know the issue is quite serious because that doesn't often happen in this town in particular so let me turn it over to Soparno from HPE Soparno please is the microphone working? I see a light on yeah great thanks and so before I started working there I had a full head of hair jokes aside been working in in Asia and did work in Fukushima after and those areas in Japan after the earthquake was in Detroit last week and you know you begin to see patterns and as I work in smart cities and I lead we don't call it smart cities we call it future cities because we believe you never get there you're always striving for a better tomorrow but let me begin with five fundamental beliefs that drive everything that we do and I'm going to take you down a very practical and pragmatic approach because we are in this to actually deliver value to our customers the first is that these cities are extraordinarily complex social systems and we need to look at all the subcomponents and they're interlinkages because otherwise by pushing a noodle you just throw in a bit of technology and things do not work number two we think of cities as a city but in my opinion there are actually four cities in a city and we have to think of these as virtual think of it as a little two by two box one is around economic affordability I think Denise you referred to it there are people who are wealthy who create an enclave a world of their own and then there are some who don't have it and who still live there the second axis is density you have really really dense areas and you have low density areas completely different situations in terms of how you deliver services acid utilization the last mile delivery etc and you might find four worlds these four worlds exist in every city that I've come across in the world there may be some parts that are bigger 24% of India's population live in slums in one ultra dense not being able to afford there are enclaves you go in Gurgaon if you walk inside you will find you're in world a and if you walk outside the gates it's a different world the question is how do we balance the needs of all four the city has to cater to the needs of all four of these point number two point number three the business model becomes extraordinarily important it's these cities are all in a perfect storm there's a lot of citizen expectations in terms of 24 by 7 by 365 service Akilesh you talked about the massive urbanization that is taking place just imagine the scale those numbers don't mean anything the busiest airport on this planet is Atlanta they get about 400 airplanes a day imagine 800 jumbo jets landing each disgorging their passengers they all come to the baggage counter pick up their bags the elderly, the young, the dead the dying, the to be born etc and they walk out and not one single person ever returns to take a flight back they stay there and this is what's going to happen to our planet each and every day no Saturdays, no Sundays no Christmas holidays, nothing it's going to happen for the foreseeable future why? why are these cities getting to be have shifted it's because of several factors one, because the emergence of knowledge economies where the clustering effect of having people together, having businesses together is driving greater value so everybody wants to be together and second is the cost of transportation have come down so that the initial bit of transportation pushing everybody outside and now again the reverse with connectivity, with web and the other forms of transportation everybody wants to be in because the value creation happens when you have complexity and density so this pace is going to continue but you need to do a lot of things differently fourth technology is going to be a massive game changer but it's not the only thing why we heard the statistics that you gave? I'm just giving you a rough back of the envelope estimates India has 1.06 doctors per a thousand people the standard here is 3.2 in the western world India has about 1.1 beds per a thousand people in some countries it's 4 to 6 let's assume that you will not get even to that stage let's assume that in the next 25 years we just get to the midpoint of these you need over a million doctors you need over a million schools classrooms you will need 500,000 hospital beds etc. you can maybe throw money at the problem you can create these 6, 7, 8, 10 years to get a doctor trained so we have to create leverage we cannot solve the old world problems the same way so that leads us to the fifth thing that the cities and the resources need to be connected we can't think of these cities in isolation we have to create leverage because there aren't enough resources going around and B the cities have to be anchors so that they support the region the tier 2, tier 3, tier 4 cities because without that the more we update and upgrade and make these cities smarter all you do is accelerate internal migration and these cities can never go so 5 fundamental beliefs so what do we come in with as the technology provider HP so we are coming at it and we've got projects that we've been doing these are paying projects this is not corporate social responsibility this is where we make money at it and I will start giving you some examples so I'm going to follow some threads around here so the first is taking a journey of driving a city and creating capacity and driving some outcomes so for example the work that we are doing in Northern England a microcosm of the UK about a million and a half people but a significantly elderly population the work that we are doing is actually identifying the most important segments in that population that need the care why because each case there in terms of a foster child or what's called as a troubled family takes a hundred thousand pounds of a case and what can we do to drive down the cost it's not about the 3% that IT takes what's about the 97% and by working with the child and with the family we find that 31 different agencies touch that one case 8 different inspectors go there to take a look at the case what can you do now to cut down on that do you need 31 agencies intervening no you don't you can do it maybe 17 can 4 inspectors do the job and therefore you find 10, 12, 15% savings in operational budget why is that important because in all of these cities if we can save money that money could be repurposed to drive the business point you are making so let me step back a bit with that one example to say how do we look at cities we look at cities in terms of 6 integrated dimensions and you can't separate one out the first is we need to create livable cities if people today have a choice if it's not livable they are not going to go there and what does livable mean it means it's a safe city it's a clean city in terms of water, power, environment etc and it's culture and vibrancy two very very difficult concept to pin what makes a city vibrant over another so some of these dimensions the second bit is that the city should drive a new economy it should create new jobs it should create the ability to retain jobs and also attract small businesses medium and you can have a whole plethora we have six dimensions under that which says what about the education what about the infrastructure what about connectivity what about transport third the city needs to be connected it needs to be able to move people it needs to be able to move goods it needs to be able to move information services that enable everything else to happen education, healthcare, social services the government services trash removal everything else and two very important things that keep coming up over and over again when I speak to cities and their CIOs one how do we as cities drive agility in being able to respond to changes B how do we drive resilience being able to bounce back or manage events and shocks and what we do is drill down and provide technology underpinnings to drive the outcomes and as you mentioned Denise that at the end of it it's about managing a few things it's about managing places the assets and all the things that the city has it's about managing things that the city owns whether it's the railway bogies or the trash removal vehicles or all the signals etc but it has two other dimensions it's about managing resources so that it does it wisely and in the middle of it doing all of this is the people dimension why should people care what value do they get out of it and that becomes the insight bit so what I talked to you about in Norfolk is how are we helping identify the most at risk populations to drive programs there what we're doing is say let's take Auckland and we do Auckland transport and it began as they were having passenger or pedestrian and car accidents about 300 people actually having serious accidents and deaths in the city and the question is why and part of it is traffic huge urban part of it was lots of bicyclists many of them tend to use carbon fiber bikes the street sensors do not pick up carbon fiber bikes they pick up metal bikes and so a video infrastructure that does not carbon fiber but metal video kind of detection to say what should happen but that can give you in terms of citizen safety it can give you red light and a big tin the work that we do in Belgium for example is fascinating because there the government has a policy in Brussels and all of London that they will ask a citizen for a piece of information only one time you don't have to fill five forms you don't have to do everything else and for privacy and other things the information comes together only on an as needed basis there's a body that actually validates that and after the transaction it breaks apart what's the value of that farmers who need who used to kind of apply for agricultural subsidy previously had to fill n number of forms and it would take four weeks to process today they get it in a matter of days if a child goes to college once the application is approved the government sends them based on this information coming together what their eligibility for financial aid is because it's put together where she's going to college what her criteria is what the parent situation is and its service and guess what it's saving them 97 million euros a year in process elimination and just fundamental costs so what we're trying to do is at a certain level create these foundational programs because moving forward we believe that we have to create for the cities not just these cities but the cities in India the capacity to save money so that that money can be redeployed in making themselves smarter there's no magic pot of gold lying anywhere I mean it may come a bit from the government budget but the cities have to figure this out right so what can we do to help that number two is what are these foundational elements that you need to build on because without that some of the subsequent programs don't work ask only once a video platform etc because these are core things that you can build on and these are open systems you can plug and play because we don't believe we have all the answers in there as a journey the third is packaging some of these and bringing them because part of what we find the governments also have to change is their culture it's not about technology yes we've talked about government but how do they change the organizational culture to drive innovation to think differently to think outside the box to push the envelope about changing the procurement mechanisms create that ecosystem bring in the customer in the room because what we are designing in applications in Norfolk is not us designing it's that child in there designing the next set mobile application because that's what's going to make it more effective right and in that we are packaging what we do and how we do it and bringing it to governments because that is such an essential part in making this change sticky and sustainable so kind of given you a long wind to dance in terms of what we are doing it's and in the basis of that obviously is the entire HP portfolio that we do we set up products and services in many places but what we've chosen to do is in terms of these large complex transformations work with only a few because we don't have the bandwidth to do these kind of multi journeys with very many so I want a few maybe 15-20 really good partners cities to work with because there's a lot of ground to be covered lots of things to be learned that we need to leverage because other cities can learn from this so what we are putting together is a collaboration of these 10 or 12 cities where the cities can actually share information and learn from each other we are setting up a center of excellence in Singapore where the government is co-investing with us so that we do city scale applications that they want to make available to other cities in the region or in the world saying hey take this it's fine it works we've tested it but you sitting in the audience who are maybe from other companies etc and I think US companies to help I think separate one obviously is the innovation and technology which I think is so essential but it's not a straight lift and shift it never works it's question of contextualizing to the needs of India that's number one I think what my peer companies and we I'm sure we have is I think we've managed some very large and complex transformation in multiple years what we do outside of Los Angeles we've been added since 2002 and in version 3 version 4 of that city so how do we help take these cities through that journey and fourth third is scale because one thing that India has is scale it's not a city with 100,000 people you're going to find cities with a lot of people and so to be able to bring and drive efficiency is I think what we as the corporate sector can bring you know kind of colleagues in India and that's honestly that's what I'm all about here terrific Soprano thank you for that please well unfortunately I have to be the timekeeper on this one I think we could have listened to all four for another couple of hours we got about five minutes so we got time for a couple of really quick questions knowing that we're up against this deadline of a certain individual from the Ministry of Finance coming in a little bit so we want to make sure the next panel has time as well but time for a couple of questions let's start in the back over there yep and so your name, where you're from and please really quick questions here because we want to cover a couple my name is Tracy Denholm I just moved back from working in India for two years actually so nice to meet you my question is there's this concept of Jugaad in India that seems like everyday populace already has the innovation culturally in them what's the first step for the corporate world in convincing the Indian governments to get on board with that may I take that? yeah so I think it's a fantastic question and I think there's a question of adaptability so I'll give you an example to example to just kind of drive the point home we do what's called as it's Jugaad on steroids let's say right we do electronic health centers in India we've got four of these now it's to provide healthcare in places where they've never seen a doctor ever in their lives and this is what's Jugaad about it because it's a micro hospital in a shipping container why is it in a shipping container because I can move it there that infrastructure exists and because no doctor wants to go there I can connect it with a teaching hospital etc so you know 50,000 people have been to doctors it has a micro pharmacy it has all of that the question that Jugaad you can take it to Jugaad too is 400,000 people in India died in traffic accidents even though the pace you can out walk a car in many of these places why does that happen to the accident victim to the hospital in the golden hour are you going to be able to solve traffic in the short term no can I put these micro health centers every 5 kilometers as trauma centers in a city I don't need too much land all I need is this much and I will save countless lives that is the kind of Jugaad we need to be able to drive with the authorities in India to think outside the box to be able to solve some of these problems so I think that's the kind of culture we need to create I will go a couple more Hi my name is Utsav Chakraborty and I'm architect in this area so I have worked in the Tyson's corner silver line renewable master plan project so I have two questions one is for Akhilesh and my question is what are the criteria that were considered when we selected the three cities that you mentioned if you could throw some light on it I think the US government has to say that I have no idea when they selected somebody on the panel can I think it was given to us by the Indian government if I'm not mistaken I think he sent it over and said these are the three I think why is that especially after the split of the state because you do have to create a new capital so certainly you know that's one so there's a half answer and my second question is addressed to Suparno it has been experienced that in the past mistakes are repeated again and again whether it's the design of Chandigar as a city or whether it is the new cities that are coming up in China especially Shanghai and the rapid urbanization and expansion that have happened what are we going to use to make sure that such mistakes in infrastructural development are not repeated and sustainable cities are built I think many of these and you know it's a long maybe we should meet outside and continue the discussion I have an angry point of view and it's shifting that we haven't had truly the design centric thinking which we put the people or the communities in the center to design around them maybe it has been done in isolation and so therefore I mean I lived in China till last year for three years and you can drive and you can see cities there with nobody living there and it was the question that had happened in isolation without really thinking the needs of the community and why will people live there etc and I'll give you an answer I think there was work in Masdar city that was going on I went there and we were doing some work there and I asked okay you're creating this brand new city totally carbon neutral etc you want 400,000 people to come and live here why will the children want to live there as well unless we think about those kinds of issues and we think about the community centric the citizen centric and everything that goes around it we won't have any evolving plan that lives forever these things are living the cities will outlive 10 generations of us it's going to be there a thousand years from now can I also just comment on that as well we see that a lot in Africa as well with a lot of PPPs charity organizations as well coming into Africa and offering aid and it's the same kind of concept the intention as you embark upon the project is amazing but the outcome isn't what it was intended for any project that you embark upon a capital project of this magnitude you need to have that governance layer in there you need to have a full results management office that is testing the performance of the requirements from the beginning right the way through you need to be checkpointing at all points in time are the human capital requirements that you needed at a point now on board have you got the right technology have you got the right infrastructure the stakeholders involved and where the financing coming from what do you need and there's someone creating some level of up-to-date schedule on that basis have you got the right funding coming in and if you haven't what are you doing about it and I think a lot of projects are unsuccessful because those governance requirements aren't necessarily even thought about at the beginning and if they are they're kind of loosely put on the side because it's more exciting and sexy to get it in we're going to have to wrap it up there but hopefully this week we'll be able to stick around for part of the reception there may be some follow up questions smart cities isn't a thing it means a lot of different things there is no cookie cutter use data before you decide to do smart solutions capture data that you generate secure that data and make sure that it doesn't get into the wrong hands and also I think a couple came up a couple of times you know ultimately it's not going to be a smart city right the connectivity that this engenders will create citizens that are actually connected far beyond their own city and in fact this smart city can become a hub for the region but also connected citizens more globally so I think there's some terrific themes here and hopefully our friends in government that are going to lead the work in here other companies you know take this and also you can share these presentations and such with your colleagues but thanks to the guests here for coming I have a deck we should have so feel free to share that we'll have on the website for the event we'll put up the presentations as speakers allow as well as the video from this but please join me in thanking the group here okay alphabetical order that's easier that's alphabetical order can we get some more water please or should we get one coffee one coffee and some water Ron Ron Summers not without the microphone not without the microphone the mic is not working can we get Ron to sit down I think it's on now excuse me everybody we're about to begin the next panel here thank you Ron we'll grab a few of the other sponsors okay we're fine we can start now this is the last panel of the day and we're sort of heading steadily towards the finance minister who will come in after this and address you and take questions but it's the first panel with a major weakness all males very sad Rick Rosso done a great job on this conference goofed up here you know right through the day we've been focusing on the four big ideas of Prime Minister Modi started with what the finance secretary talked about the new empowerment of states you were not here but he talked about fiscal federalism and the whole new direction of more resources to states more money more independence to take decisions and chart their own growth path then we got into skills which has become a very big mission in the country led by the PM and then we've just finished smart cities another big idea of his and the fourth which we are into now is make in India and I really congratulate Rick Rosso wherever he is for you know kind of he has four themes which the prime minister has driven amongst many other initiatives which he has done so an amazing three words now make in India crafted by him galvanizing activities for investment investment growth manufacturing and really calling for new industrial policy paradigm for India and a very FDI friendly paradigm now thousands of words have been spoken and written on make in India lots of different interpretations and we have a panel of four here three American corporates all with presence in India I should probably disclose who used to be on the advisory board of Oracle in so I will be tough on you okay and we have one opposition member of parliament not from the BJP but from the state of Orissa and not part of the national democratic alliance led by the BJP that is Mr. BJ Panda I'm going to start with Mr. Panda how does he see make in India good bad, indifferent where do you come from before I go to the corporates in alphabetical order J Panda let's put this in context India has India's workforce is approximately 450 million people and over the next 15 years we will be needing to create a million jobs every month to absorb this workforce to make sure that we are gamefully employed and not go into crime or something else if you look at our economy it's lopsided about 16% of our economy is in manufacturing of some kind you compare that with China at just under 50% even when you compare that with our peer countries the so called BRICS Brazil or Malaysia, Korea they are all way above 20% this lopsidedness hasn't happened overnight it has taken decades of poor policies decades of an environment that has been hostile to business and investment we sometimes look at the past few years where the shine wore off on the India story of a dozen years ago and we forget that this was not an isolation India did briefly shine for a while from between the late 90s and the early mid 2000s when the effect of economic reform from the early 90s first started kicking in but if you look at the last 10 years it's ironic that only last month after a period of almost 10 years did we manage to pass any significant economic legislation in parliament for the past decade there has been almost no significant economic legislation we had a lot of social legislation we had a lot of expenditure legislation but we didn't have the kind of legislation that would grow the pie what this means is that there is a lot of momentum that we have to overcome let me give you an example of how tough this is the prime minister came in last year and started changing the narrative from the very fundamentals and going all over the world to sell the India story all over again and by all accounts he's been doing a great job in selling India but if you take one measure for instance the world bank has a measure called ease of doing business last year India ranked 140 out of 185 countries you'd imagine with all the effort that has gone in in the past one year not just the announcement of the make in India but for example the AII investment has gone up 40% year on year for example the economic package the three major bills that were passed that I just referred to guess what in a year's time instead of improving we have slid further two points 2015 India is not 140 but 142 out of 185 countries to do business the reason is still everybody else is getting better you have to run faster to just stay in the same place and we need to make a lot of changes if I'm sounding pessimistic I'm not I'm just laying out the landscape as I see it and the reasons why we are where we are today the reality is I'm actually quite an optimist in terms of what is finally happening one of the main problems of course has been the politics and that was referred to in other panels I was here for the just previous panel whether it is about cities or about manufacturing politics often creates gridlock and I know in this country you aren't unfamiliar with that the good news in India is that since the government came in last May in the three parliament sessions that we've had the monsoon session, the winter session and the first half of the budget session two of them have been the most productive in the last 10 years in terms of number of days work, number of hours work, number of bills passed and as I said fortunately now also economic bills not just social bills these are all great signs that we are turning the ship around but it is a big oil tank it's not a little sports car so it is going to take a while to turn around I'm actually quite confident that even at the rate at which we are progressing we should reverse the trend in terms of the ease of doing business index number even by the coming year so our big shortcomings are infrastructure because we under invested in infrastructure for many decades regulatory hurdles of course and among the regulatory hurdles I would rank the single biggest hurdle of all as labor laws we have I think the world's most complex most difficult to operate in in terms of labor laws but there are many ways to tackle this problem just to take a little aside I don't have the time to explain it here but take my word for it to get these three bills passed in parliament took six months of trench warfare in parliament out of sight of many observers and the media a lot of people just thought that the government was spinning its wheels but it wasn't it was actually reaching out across the aisle building consensus first passed ordinances which are executive orders temporary in nature to signal that they were serious and then followed up by patching together the numbers in both houses of parliament to get these bills passed these are all good signs labor law is a bigger hurdle than some of the laws economic laws we have passed just recently so the approach they seem to be taking is we don't have to do it nationally all at one go so the party government is sending out signals to its state units wherever they are in government to start taking action and you are beginning to see in the state of Rajasthan and a few other states early action at liberalizing labor laws to be in line with what is needed still doesn't go far enough it's just a foot in the door kind of approach but it is beginning to show results I'm aware of at least one big national company that's in manufacturing heavy equipment that has doubled down its presence in one of these states which is pioneering labor law reform and in my interactions with them they have told me that is one of the crucial reasons why they are doing it the infrastructure angle is likely to get sorted out over the next few years as some of these projects get going many of these projects have been held up because of the government's left hand not knowing what the right hand was doing different ministries and departments opposing each other that part seems to be gradually getting sorted out because there is a decisiveness back in the government everybody knows where the buck stops whereas for many years for the past decade it was sort of a free for all for the past decade the buck did not stop at the prime minister's desk and it was kind of a coalition government with all the horrors that you would imagine that it could be whereas today you have a much more decisive government it's not a cinch you still need to pass bills in both houses the government does not have a majority in the upper house but they have shown resolve and they have shown the ability to get some bills passed in the upper house and the good news is not everything requires legislation there are things that are under executive action of the government that they need to take and I am hopeful that although not everybody is pleased at the pace at which they are bringing in these changes certainly the direction is in the right direction and I am hopeful that this will start paying off also new sectors have been opened up FDI in defense for instance FDI in insurance I think one of the big turning points is going to be when FDI starts rising rather than financial institutional investment institutional investment can come in easy go out easy but we need the investment on the ground we need the investment in factories we need the investment in infrastructure projects which is FDI we also need to do the same thing for domestic investment a lot of us believe that the interest rates are too high particularly since we've had a year of low inflation the gods have been kind to us oil prices have been low but for whatever reason but we do have an independent regulator our central bank is the reserve bank of India and headed by a very credible person who's introduced data driven decision making on the bank's policies and that has not led to lowering of rates as quickly as industry would like but there has been some lowering of rates I'm actually hopeful that rates will continue to lower but I'm not the person to decide that we're just keeping our fingers crossed I'll sum up by saying this what do I think of make in India two words vastly overdue I'll sum up by saying this you know even when the India story had the shine go off we were still growing at four and a half five percent which is not all that bad although it's bad for the developing economy but even when we were growing at nine percent and briefly one quarter we touched ten percent the problem was that we got caught up in hubris all of India are politicians our editors our business people we got caught up in the hubris that it was our manifest destiny to be the next economic superpower and we didn't have to do anything to make it happen that was because it had been a decade or 14 years since the reforms of the early 90s when this kicked in so the cause and effect didn't stay in people's mind this time around things are different I think we realize that although this vast opportunity exists for us particularly with China sort of plateauing not slowing down but plateauing in the 90s but they'll be not automatic we have to go out and make it happen and one of the biggest things that's going to make it happen apart from everything I've said is what Tarun mentioned a bit earlier is about finally finally after 67 years Delhi realizing that it cannot micromanage 29 states a full subcontinent and coming in with these new principles of fiscal devolution which this year alone gives an additional $29 billion to the states and leaves it to the states to manage their own destinies which as I said I give you an example of Rajasthan which is one state which is taking the lead in labor law reform doesn't go far enough by a long shot but it's already beginning to see some results in terms of attracting investment in terms of making India we have no option but to make sure our economy is balanced not so heavily dependent on services and agriculture where the sons and daughters of farmers no longer want to be in farming we have to shift the load quite a lot onto manufacturing and not the kind of manufacturing which dominates India which are quote-unquote firms with less than 10 employees which is all in the unregulated sector we need to attract scale and all that I have said I think indicates that we are perhaps turning the ship around in the right direction but we need to do a lot more and we need to do it quickly thank you I'm going to go to Rustam Desai now he is the managing director of Corning India Corning does not need an introduction anywhere in the world certainly not in the US it's an outstanding company and Rustam is the chief executive of that company Rustam how do you see make in India how is life in India is it treating you a little better or is it all the same what needs to be done share your thoughts with us so Tarun I actually have a few slides if you don't mind sure the short answer is that it continues to be an adventure continues to be an adventure yeah can somebody pull my slides up I don't know who's controlling the there we go so what I thought I'd share with the audience today and with the panelists is Corning's story around make in India it's a look back at how we got to where we are today and hopefully that will shed some light in terms of what's working where the opportunities for change exist so on and so forth so I want to start off by trying to help people understand why we actually chose to manufacture in India the plant that we invested in makes optical fiber optical fiber is the backbone of essentially any data voice network anywhere in the world and there are two data points that drove us to think really hard about India one was that the subscriber base of mobile users in India was enormous and that compared with the relative scale of infrastructure that supported those subscribers was abysmal and that created an opportunity for doing business so clearly there was a business need for the products that we made we also quickly realized that at least half of the market half of our end use market was actually government driven and I'm sure many of you that participate in India I'm sure many of you do you know that government procurement has certain PMA requirements around it and we thought it would be a good decision on our part to actually leverage that and so we decided to invest in building a facility in India then the next once we decided okay we got to do India the next question was where the hell do we build this plant it's 29 states everyone has a different story others have people what combination of those things are absolutely necessary can you run a plant without people or can you run it without power let's think about that so we went through a very extensive process we started off with a short list of 10 states over 50 sites we drove that down to 3 states and 5 sites and finally now that it's all behind us we can talk about it down to 2 sites in 2 states one was in Gujarat and one was in Maharashtra and we chose Maharashtra and fundamentally through this entire process the 4 criteria that we established for ourselves in terms of how we would choose which state to go to was around the availability of infrastructure and how much it would cost us the facilities available for employees and potential expats as we were building this facility the talent availability and the full disclosure of financial incentives that were being offered to us either by the states or at the federal level so looking back here's how it all came out we made some assumptions about those 4 criteria and then there was a set of sort of reality experiences that we had during the process that in some cases was aligned with the assumptions in other cases not we assumed infrastructure would be cheap and we expected that we would have teething problems with the infrastructure in India that's what everybody told us as it turns out neither was the infrastructure cheap nor was this a question of teething problems the infrastructure in India is really expensive especially if you go anywhere close to a large city and the infrastructure issues continued to plague us so not a great story on that particular variable as far as facilities for employees and expats is concerned I think we made a great choice we're right outside of Pune we had 200 plus US employees, China employees visiting this plant on and off over the 18 months that it was being built the facilities and infrastructure that Pune offers relative to other options that we looked at I think made it significantly improved the probability that our employees were safe and well taken care of and made it to and from the site so that assumption and reality kind of proved out talent was the real surprise for me personally I'm Indian I grew up in India I always my assumption was that it would be easy to find lots of people it would not be easy to find lots of good people and to me that was the biggest personal learning for me we found a lot of people we have also found a lot of great people the people that work in our plant deliver a world class product they deliver it in many cases in a manner that is better than any of our other facilities around the world attrition is low this is an awesome team so I'd like to leave you guys with that one real positive from our experience the other piece was just simple financial incentives some states gave more others gave less we chose one of the states that gave us the best package and so we were in Maharashtra so in hindsight the learnings from this whole experience plan for infrastructure issues sort of to endure beyond just the start up of your facility find ways to have your processes adjust and adapt to the fact that you will continue to deal with those issues it's not it's not a fatal flaw in India it's just something that you got a plan for and be thoughtful of rather than think that it'll go away because it won't the other piece of course is that those of you that haven't already done this there's always the Indian government is actually really good and thoughtful about incentives in terms of manufacturing in terms of exporting products and so forth be thoughtful about those things as you go into deciding where to build and then finally people plan people planning is critical build your processes and your people hiring processes and your training processes and your safety processes around building talent and retaining them because awesome awesome talent available if you go about it in the right way ok the next few slides is just some photographs to kind of bring all of this home for you guys so that was the piece of land that we we finally landed up acquiring outside of Pune lovely patch of green not much else you can see no electric cables you can see no road certainly not a lot of people around there anyhow it was a lovely patch of land we took it it took us 9 months to acquire the piece of land which I think for us it was the first time that Corning invested in a wholly owned facility in India including me everybody was shocked that it took so long but it did it took us 9 months that's the plant it took us 373 days from the time we moved the first piece of dirt to the time we started to sell our first piece of product from that facility that is a worldwide record for Corning ok during that process as we mentioned earlier we invested very heavily in training and as I also mentioned earlier I am really proud to report that this plant produces world class product we export 50% of what we make there it makes it back to the US it makes it to Europe it makes it to every geography in the world world class product but that's the road now we ship glass just so you guys understand our raw material is glass now this is an old photograph I am happy to report that there is actually a road today but this photograph was taken 2 years after the day we started selling product from the plant we still didn't have a road connecting our facility to anything that looked like a road and that is the challenge so what did we have to do we had to innovate around packaging materials packaging processes shipping we had to put accelerometers into our trucks to figure out which were the biggest bumps and how do we prevent having 100% of our raw material show up broken we figured it out and the plant is doing great and we have great people and it's a great story so just watch out for not having a road and so bringing all of this back together I always think about stuff like this and say well what can we learn from all this and how can these various components of the manufacturing equation actually help make the future of India manufacturing better and I sat down on my team and we did some thinking around how does India stack up relative to other geographies that are potentially buying for similar manufacturing investment dollars and the story we came out with is that as far as the market opportunity is concerned and as far as sort of the investment incentives if you like is concerned India is actually in many cases far better than the competition but there's a section in the middle around the transparency of decision making what people often call the license Raj or the inspector Raj where essentially every bureaucrat looks at you like you've done something wrong and then you got to prove that you haven't which is an odd place to be but anyhow the efficiency around permitting and approval processes I've got to tell you there is a company that will not be named at this point but participates in a trade association with us and they did the math around if they had sequentially actually done all their permitting one after the other rather than parallely one or the other of their files in an Indian government office for over 10 years to have taken them over 10 years to get through the approval process so what can we all do I think if I were writing the script for the India government I'd say let's try and make this more about how we can attract manufacturing investment rather than allow it the feeling you get as an investor is you're grudgingly allowed to invest not that you're actually being invited to invest but the total difference I think will go for a long way in this country that has so much potential and you can read all the other bullet points at your leisure but I think there's a role for the US government to play as well our experience was actually the US embassy and the consular offices were tremendously helpful to us they were tremendously helpful opening doors having conversations that other organizations were not comfortable having with government so on and so forth it was a great work you know anyone here that's in government the embassies and the consular offices did a fantastic job for us there's an element around how the US government can help de-risk our investment choices that I don't think that's going to be a secret to anybody here often other government other companies from other jurisdictions show up with money from their companies from their countries and that model ought to be thought through a little bit in terms of how the US governments do to make all of this look you know make the future look better I think celebrating the wins you know being more vocal about the fact that yes India does have its set of issues like many other countries do but we invested in India it's been a very successful adventure for us it's an adventure but it's been a successful one and we'd probably do it again and so it's really a story of yeah there's a few stumbling blocks I've never been in India delighted to be manufacturing there and mostly delighted about the team that we've been able to create at our facility thank you thank you thank you very much I not ask you but I suppose you're making money you may suppose good can't disclose Clifford Samuel India you have a very different experience with India good to have you here I do indeed have a different and bullish perspective on India I think the theme making India is good I would say that we are already making in India through our various partners which you'll see let me see if I can advance this I'll start with a little bit of Gilead and then I quickly will move to what we're doing this will be brief because I'm looking forward to some of the dialogue about Gilead the mission discover develop and deliver innovative medicines in areas upon medical need 7000 employees in the Bay Area San Francisco California beautiful place if you ever get to visit we have a portfolio of pipeline and investigational medicines in the area of HIV AIDS viral hepatitis liver disease BNC cancer inflammation respiratory and cardiovascular disease and 19 marketed products in addition to 400 ongoing our planned clinical trials so very robust R&D occurring in highly on medical needs now there's something that we need to be clear on what you see in the next couple of slides we have one of our board members here Carla Hills but with individuals like Carla our chairman CEO John Martin our president CEO CEO John Milligan and my boss Greg Alton we fundamentally believe that anyone who needs our medicines should have access to them irregardless of where they live or their ability to pay their economic means or where they live should not impede someone to not have a cutting edge medicine that's available in the US and Europe so how do we go about this and how do we tackle things like HIV where you have 35 million people living and in the world 90% of them are in poor developing world countries and in other areas such as Hep C so we have purged this in a two prong on one side we have what we call our organic infrastructure these are our 20 distributors they're also local individuals Milan is our distributor for India and South Africa and we characterize those distributors as Gilead on the frontlines they've gone through our business conduct and compliance training they do on any given day the regulatory submissions for the dossiers to ensure that product can be supplied sustainably they are conducting pharmacovigilance safety reporting and something that we really spend a lot of time on you can get the medicines in the country and of course sometimes they're not being used because they don't have enough doctors we spend a lot of time on public health medical education and training and also health system strengthening so that's what our distributors are doing on any given day now recognizing the magnitude of this pandemic and I'm responsible for 130 countries the 130 countries span from Mexico, Central America Caribbean, all of Africa South-South-East Asia-Pacific so what we do we recognize that this is not possible on our own so we have engaged India's finest India's finest are their manufacturers of medicines India in my country India has always been the pharmaceutical engine for the poor and what we've done starting in 2006 because I must tell you in 2003 we failed miserably a bit of hubris as someone might have said here can get the best of you but we did learn that you can't do it alone and just making a price lower and saying everybody can come and get it doesn't mean anyone will come and get it and that's what happened in 2003 in 2006 we decided that we should engage our generic manufacturers out of India they're the best at it it started with 94 countries and I can say then we had 30,000 patients on treatment fast forward we also joined the medicines pattern pool which is very similar to what we're doing with our Indian manufacturers but independent of a pharmaceutical company in 2014 we have 19 generic manufacturers now so it went from 11 to 19 it's constantly evolving program and now our Indian partners of this 7.3 million patients that are on our medicines in these 130 countries 6 million of them are being supplied by our Indian generic partners and that's phenomenal that's across Africa Asia Pacific Latin America this is India making it so making India is good but there are sectors that are already making it and these factories have hundreds of people you go to Sipla and Goa or Biocon Zidas they have hundreds of people different shifts 24-7 so very viable industry India we just launched our drug for hepatitis C which in combination with two other medicines is a cure a cure for hepatitis C India is the first country in the Asian region in 4 months approved Suvaldi for hepatitis C and following the similar but different format of the generic arrangements for HIV we have now 11 partners gearing up some of them have already launched their version of Suvaldi in India so you couldn't ask for a better story on what is being done and what can be done in the future when we look at global reach you can see that on the HIV side is 112 countries on the hepatitis C side is 91 countries the HIV side represents about 30 million of the 35 million that's what Indian manufacturers are providing medicines for on the hepatitis C side it will be up to 100 million people that could be reached we've calculated that 2 billion dollars have been made since 2007 by our generic partners now one thing to mention what we do is we take our medicines for example this Havoni which was just approved for the cure of hep C and we take that and do a technology transfer to our Indian manufacturers now this is in spite of not having our patent issued in India because as I mentioned from our board and our chairman CEO we fundamentally believe that IP issues intellectual property issues are separate from saving lives now I must say that it would be ideal if we had a patent issued because it would cement this model of doing a technology transfer of our know-how to generic Indian generic partners they are free to set their own price to make any combination of medicines they like to make they are free to sell the active pharmaceutical ingredient to each other this is all their business it's a hands-off relationship what we do help with is if they run into any issues making the product as quickly as possible we're there to assist because we really do want the medicines to get to the poor to the poor but clearly Indian manufacturers are the best at high volume on a large scale of manufacturing and it's proven it's proven in our model so you can ask what better slide if you're looking at geographically this first regions you have manufacturers in every part of major cities and I say there are opportunities here to broaden this as we go along and numbers always speak for themselves the proofs are in the numbers 9-year relationship 19 partners on the HIV side 8 Gilead products we're also looking at oncology I mentioned inflammation oncology respiratory these medicines will transcend into this model as well one of the key aspects of quality is getting approval tentative FDA approval by the US FDA and WHO pre-qualification we have 39 of them I mentioned the 6 million and the opportunity for 100 million on the HCP side but clearly we have seen an 80% reduction in price this is exactly what we wanted to see price going down volumes going up lives being saved I think this is phenomenal which is why I'm bullish I'll close with this slide last September our drug Sovaldi which was approved in 2013 I think December brand new product FDA approve you have 20 years of patent exclusivity we launched a make in India licensing agreements with 11 of our partners in India they're moving they're getting it done I will close in saying that this is wonderful and there isn't a good spot two things I think needs to occur the recognition of intellectual property because it can flow both ways our partners are improving what we have even made they're coming up with novel ways of improvements you want to patent those you want to make those available in China and Brazil and other places the respect for IP would cement what we're trying to accomplish here it's a model that says on either side of the aisle multinational say you can't do business in India India is saying your products aren't getting to the poor this starts the dialogue and actually show by doing so the respect for IP or the issuance of intellectual property and investment in healthcare of its citizens it doesn't matter what you try to do or what you try to make you're going to have to have healthy citizens to execute to get that road done or to do anything you do need investments in the healthcare systems so thank you very much I hope I didn't go too far thank you that was terrific thank you very very different very unique model operating around the world and in India Joe take it away I'll sit here because I don't actually have slides so we certainly welcome make in India and we think we shouldn't forget what I consider to be its companion which is digital India because both of them together make an exceedingly compelling argument and it's also useful because both of them together create a strategic vision across sectors and that's tremendously important because that creates that cohesion across the government that is necessary when you start looking at these solutions because many of the issues the government has to deal with especially if you deal with perceptions from the outside are macro issues and this kind of strategic whole of the government vision becomes very important to selling the desirability of the destination for investment so one we strongly welcome the combination of make in India and digital India we also think it's important because it started to shift the vision of ICT as merely a destination to attract investment to also consider ICT information communication technologies as an enabler across all sectors and that is in fact the real role of ICT as enablement across sectors not just a sector in which you want to have investment in production as articulated and as set forth so far the make in India program is an incentive driven as you pointed out FDI friendly and I would call it a race to the top I mean the information communication technology business processing outsourcing industry in India is the example of what happens when you have an incentive driven race to the top it went from an industry that had small scale to an industry that became large scale to an industry that had export to an industry that's a world class leader and that is the potential you have but you grow stepwise as you need to and the incentives are logical in the relation of the context of where the industry is we had previously seen some experience with the fallacy of what a top down imposed set of manufacturing requirements would look like and the history of that wherever it is done is that what you end up having is a manufacturing industry that will only ever manufacture something that is good enough for the domestic market something that will not create an export market and something that will lead to the mediocrity of the product as opposed to the world class product so we are very happy to see that that is not the path that was chosen in this exercise and we strongly strongly commend that that not be something that falls back that path would not be a path in the future a number of people have pointed out there is an infrastructure reality and that is the truth I sometimes call it the money on the table issue there is a huge unmet market demand in India there is a growing set of incentives and in my experience the Indian businessmen I have met are among the most entrepreneurial in the world there is a table full of money and a whole bunch of unmet demand and those tremendously entrepreneurial people have no desire to pick up that money then you have some infrastructure problems that you need to address first there are some basic issues that are preventing someone from picking up money from that pile and some of it may be the questions of do you have the electricity, the people, the facilities everything in the right place so you know especially when you are talking about the highest tech manufacturing the fault tolerance is very slim the need to have very constant supplies of electricity good supplies of water, skills legal certainty as was highlighted previously and then an understanding of your competitive global dynamic when the BPO industry started in India India was kind of the game in town if you look globally there wasn't a whole lot of a competitive environment there today both in manufacturing and in services there is a huge competitive environment of lots of peer countries trying to create incentives to drive people to come to them choose me, choose me let me show you the package I am going to give you let me show you how nice my welcome mat is not allow attract as the statement was made I am going to steal that from you on occasion if you don't mind so we also have to think when and the million people that have to join the job market on a monthly basis and the desire for manufacturing but let's also not forget that everything has a multiplier effect that also leads to manufacturing the multiplier effect in services is thought to be about 4 to 1 4 jobs are created for every job in the services sector while those jobs include construction those jobs include people who make consumer electronic those jobs include a lot of things where people are producing to go into that value chain so let us not misunderstand that those tales of production are also very important so even if you are involved in services, services creates a manufacturing tale of its own and that has to be considered as part of making India as well the next thing I wanted to highlight was kind of going to the macro issue and a couple of the speakers before me have gotten to elements of them but there was a very organized way of looking at those elements that came out of a document that was created in APEC the Asia Pacific Economic Cooperation which is essentially all the Pacific Rim countries and it was signed by leaders so this is a document endorsed at the highest level APEC has to endorse at and it was called the digital prosperity checklist and the digital prosperity checklist said what is it that an economy has to do today to attract someone to say I want to put my next facility or I want to put my investment dollars in that and the answer is it's not one element it's multiple elements and they operate in a matrix which means they're codependent to each other and the elements were infrastructure what is your physical infrastructure what is your regulatory infrastructure for example the labor laws what are your infrastructure opportunities investment do you have fluid capital markets do you enable foreign direct investment do you have micro financing if that's an investment that's appropriate for your market intellectual capital what is the preparedness of your population in terms of entrepreneurial skills linguistic skills technological skills information flows if information is the currency or the oil of the digital economy how can you use and manage information across your economy innovation how does your economy support innovation and finally integration and that's the one where we cheated because we were coming up we thought alliteration was very good and we wanted six eyes and we couldn't come up with a reasonable life for trade so we called it integration but that really means trade behind the border at the border and across the border and it is that economic and policy orientation towards all six of these eyes and the way they work in integration that actually makes the economy attractive for investment so while you may have companies that can bring either that can leverage existing world class manufacture as was done by Gilead or who bring their technology in as was done by Corning you have lots of folks who are looking for where are the component manufacturers I can have and the question is how do we make those become best of breed in India because you cannot incorporate into a globally acclimated supply chain a less than a globally qualified manufacturer so we have a chicken and egg problem with make in India which is we have to also raise the level and the competence of some of those people who manufacture a piece of the solution and want to become part of your supply chain and I think part of that is education part of that is the fact that the Indian economy is developing those on its own part of that is finding the strengths so India strength in the drug manufacture was they had mastered many of the productions for making quality drugs at a lower price sometimes it's because they have mastered the concept of I can come up with a more simplified solution to a problem that may be able to address a mass market requirement and the problem is right away when you see make in India and you see tech companies involved someone wants to know where is the next chip fab chip fabrication is a very delicate high strung requiring lots of tolerances let's figure out how we walk before we run maybe the component manufacturers are the place to start maybe that's part of the concept maybe understanding where India skills are best suited it's not that chip fabrication shouldn't be part of the strategy along the path but it's maybe not the first step you go to so we actually think make in India and digital India combined are a powerful incentive we think the smart cities will be consumers of some of what gets manufactured in this so we think this whole of government approach related to the strategic direction is a very positive development in India puts truth to the concept of why there is so much optimism the one caution I would perhaps have is the work ethic at the very top of Indian leadership is a difficult one for anyone else in the government to match the concepts we've heard of getting the 9 or 10 or 11 p.m. phone call about the presentation you're going to make to me the next day are somewhat legendary and the concern is there is such a desire to please and meet the schedule that there is a concern of over promising in some cases and the over promising leads to a failure that doesn't exist because if you don't meet an objective that was never a realistic objective then it shouldn't be considered a failure and from a public perception and an external perception it is not useful for India to have such an expectation that it cannot meet so the only thing I would say is to temper some of the realistic objectives and realistic time frames because I think there has been an over ambition which doesn't necessarily help India which has every opportunity to make the milestones it needs to make but the milestones have to be realistic to achieve. Thank you. Thank you very much. You've had one great overview and three terrific presentations by the three U.S. corporates. We have 10 minutes for questions name brevity and question not speech Tessie Schaefer. Mike coming to you. Tessie Schaefer from McClarty Associates and Brookings wonderful presentations I had occasion to call on a joint secretary in one of the ministries in India who handed me his business card with Make in India actually on the top side and his name on the bottom and gave me a stirring presentation of how the Make Initiative was all about infrastructure which he defined both in the way Mr. Desai and Jay defined it but also to include things like training. My question is for those of you who have run enterprises in India that actually make something are you seeing government initiatives either in physical infrastructure or in people infrastructure and if you could write your own ticket what kind of government initiatives would you look at or would you look at incentives for companies to do more of that themselves. Any of you want to take this? I'd be happy to. You know it really comes down to I can only speak for Corning but we're not good at making roads it's just not what we do and so an environment that has the physical infrastructure in some state that looks like ready before that infrastructure gets offered to corporations to show up I think will have a there will be a line of companies waiting to invest in properties like that it will be a no-brainer for US corporations because all the other elements are already in place there's a market there's talent there's all the other things that are required you know the six eyes to make this jurisdiction be exciting from an investment standpoint are already a problem and I would offer that that will create a gravy train of potential investors just make sure there's electricity water and roads really it's that simple if the government can take care of that piece I think the investment dollars will not stop it turns out that the government isn't very good either at making roads and building electricity but I'll tell you where let me tell you what the answer is not for government to do everything but government to be responsible for it and facilitate it there are other companies that are very good at building roads and there are other companies that are very good at building electricity plants the last time around that this happened it all got sucked into crony capitalism and scandals so all the SEZs that were put up were scandal ridden these are places that you would have happily walked into and all these problems been taken care of you were they this time around I'm a bit more hopeful because in changing the narrative the government has been actually talking about being pro-business pro-markets but no not pro-specific cronies who get to get all the deals and I think if that is implemented properly it should be a win-win situation because leaving it to the government is going to be worse than leaving it to you then building the roads I think there is a lot of pressure now to make up the backlog on infrastructure projects but it will take time infrastructure by its nature is not something built overnight most of our highways now the new highways and all have been built by foreign companies roughly 30% by Malaysian companies and the quality is world class you can see that but that needs to extend beyond the highways essentially I think as well I mentioned it already the GDP laws should be looked at I think there is a lot of companies that would love to take advantage of the scientific minds and know how in India but they are worried it's not always stance we have life-saving medicines we are going to continue but perhaps the model will help bring some of that dialogue to the table Yes, Sadan Mike there please I am Sadan Dhoomi from the American Enterprise Institute and I have a very quick clarification and a question the clarification is that in terms of ease of doing business even though that 2015 number India declined from 140 to 142 the period measured is the summer of 2013 to 2014 so what we are going to see in terms of whether this government has delivered or not will come out in the 2016 number my question is also for Mr. Panda this sort of advantage of looking at India not only from Delhi but also being an MP who is very involved with your state and your constituency so when you look at making India putting on your state hat where do you see opportunities for the state government or for RISA to make reforms or to move to attract investment in a way that it could not have say before the election of this government in the center well if you look at RISA it may not be typical for all of India although there are some common threads but RISA is a good example because it has turned around from being a basket case for many decades to being one of the fastest growing economies inside of India for the past decade the common thread, the problem that we all face is land acquisition and this is a challenge that we are now dealing with there is an ordinance out on it but we have not been able to thrash through legislation I expect the legislation will take close to a year to happen because of various technical requirements for land acquisition now I mentioned land acquisition because RISA being mineral rich has had these gigantic process industry plants that have got stuck because of land acquisition, the Korean Pohang Steel Company, the Vedanta aluminum plant the good news is that there is lots of other stuff that is happening there is infrastructure that is happening the tourism sector is booming this is one of the things that the Prime Minister has actually personally led in terms of making visa-free arrival to India or visa on arrival in India to 40 countries now going up to 150 countries just to remove that hurdle of hassle of visiting India is making a big difference so we are beginning to see lots of increase in flights the new airport came in a few years ago so we are lucky but we need dozens of more airports all around the country and these seem to be easier hurdles to overcome than some of the other big infrastructure projects, I mean airports ports in RISA we have a 500 kilometer coastline we used to have one port we did have three operational ports so these are some of the opportunities there is lots of private educational institutions that are coming up in the past these used to be not up to the mark recent examples are getting to be better so I think an IT for instance nobody thinks of RISA as an IT center seventh largest employer of information technology professionals in the country so there is lots happening under the radar when people think of IT they think of Bangalore Pune they don't think of the tier 3 cities that are beginning to employ thousands of IT professionals all across the country so that's what I see at the glass half full Ray Mr. Samuel, I have a question I'm Ray Vickery from Albright Stonebridge evidently one of the factors in Gilead's success in India where others have failed has been your two tier pricing system which allows for lower price in India than in other markets it seems to me that that might have some implications for other companies which are heavily intellectually intellectual property based I'm wondering if you might elaborate a little bit more on how that pricing structure works it's evolved over the years initially we took the 130 countries for HIV and actually looked at world bank classifications and GNI per capita and then disease prevalence so GNI per capita disease prevalence and you came up with two categories low income or low middle income and then we set a price based on those two tiers so that was in 2006 now we've evolved because you'll find even with a low income or low middle income country you still have that economic pyramid of the have less and have not so we're looking at three different types of models now one is differential pricing based on those criteria we set a private market price a low income price to the ministry of health where you can actually negotiate volumes agreements and then maybe in some countries you have a military or some other entity that has its own budget and purchasing in many ways I've spent years in the US it's no different from the VA etna signa medicaid medicare so it's really just utilizing what's been around and having a conversation with the ministry to see what they're ready to participate in last question young man at the back hand went up first thank you Tharon my name is Sanjeev Joshipura I run SJ Consulting which is a US India focused public policy and business consulting firm my question is for Mr. Panda in your opening remarks Mr. Panda you mentioned executive orders and without getting into the arcane details of parliamentary procedure or anything like that I want to ask you a question around those executive orders as it pertains to policy certainty for investors in the United States as well we've had a problem with executive orders and you know a controversy around that with what Mr. Obama has done on immigration and in India I'm wondering whether there are any sunset clauses applicable to executive orders that parliament can rescind unless a formal bill is passed on those specific issues thank you parliament can do anything parliament can make retrospective laws which I think are a very bad idea but I don't think it's highly likely that parliament will actually consider retrospective laws with perhaps one exception the contentious issue is the land acquisition issue now I've written extensively on both ordinances and on land acquisition you might want to just look up my articles I've addressed some of this so because I have to be brief here I'd like to say that in fact investors or corporates who would take advantage of those ordinances to make investments are being cautious but I don't think they will continue to be cautious across the board they will probably be cautious on lands being acquired by ordinance and in any case most of the lands being acquired for ordinance are for purely truly public purpose rather than for industrial states or anything like that technically let's be very clear parliament does have the authority to make retrospective laws but in all likelihood I'd be pretty willing to bet that if you go ahead and make investment decisions based on ordinances which have been passed you are okay some quick takeaways before we conclude because Rick Rosser wants us to finish by 345 taking Rustam's first comment he said India is an adventure I think the challenge for us is to not make it an adventure just to respond I think that was a very important point that you made you made it light heartedly but I think there's a very major message there second very positive point and I think that's coming out everywhere people quality of people talent, low attrition this is a great place to find good people this is the experience of many companies including I think the companies on the panel third I think right across infrastructure, infrastructure, infrastructure this has come through from everyone different kinds of infrastructure not just physical infrastructure but different kinds of infrastructure that is going to make a huge difference to make in India investments, growth there is as I said lot of attention to it but we've got to get it done now it has to go beyond talking about it attract not allow I think this is a huge issue huge issue because I think many many corporates including all Indian corporates actually face this problem of the bureaucracy taking a attitude allow we're doing your favor by meeting you we are allowing you to set up industry so for me it seems that Prime Minister has to go through a blood transfusion he has to bring in people with domain knowledge with self confidence with integrity and competence who will get the job done for him he's done a little bit of that blood transfusion it's making a difference in some areas but he hasn't done it yet in some of the domestic areas actually made a huge difference in the international relations area by making significant changes there so a very important point from you Rustam one hears it too much where everybody feels this pain of dealing with the administration I think these are some of the quick takeaways I think it's been a great session Prime Minister obviously has a great vision I think we need to get the architecture right and the implementation right these two are still work in progress before we conclude and I thank this panel I just want to recognize one great man who has been sitting through our session quietly Professor Jagdish Bhagwati there Jagdish will you raise your hand one of our leading global thinkers thank you very much thank you for being here and for speaking thank you