Team Finland organized a half day seminar in Helsinki on 21 April 2017, highlighting business opportunities in India and casting light on success stories of Finnish companies in Indian market (but also raising challenges encountered). Inspiring high-level speakers came from India, from Finnish companies and from Team Finland India. http://event.finpro.fi/indiaday/

1. WELCOME TO
INDIA DAY

2. Join the
discussion on
Twitter
#TFIndiaDay

3. Markus Suomi
CIO Finpro Oy
09:00; Mr. Markus Suomi, President & CEO, Finpro
Welcoming remarks
09:05 Greetings from the Government of India; Mr. Ashok Kumar Sharma,
Ambassador of India to Finland
09:10 Outlook on Indian political and economic environment; Mr. Subhash Agrawal,
political analyst and founder of India Focus
09:45 Greetings from the Government of Finland; Mr. Mika Lintilä, Minister of Economic Affairs
09:55 Building an investor bridge between India and Finland; Ms. Padmaja Ruparel,
President of Indian Angel Network
10:30 How the Indo-Finnish innovation and R&D collaboration can be further developed to
next level, how India can leverage Finnish expertise and vice versa;
Dr Shailja Vaidya Gupta, Director, International Collaboration; Department of
Biotechnology Ministry of Science & Technology
10:50 Coffee break
11:10 The companies panel
12:30 Closing statement; Ms. Nina Vaskunlahti

4. Mr Markus Suomi
President & CEO
Finpro Ltd
Welcoming remarks

5. Mr Ashok Kumar Sharma,
Ambassador of India to
Finland
Greetings from the Government
of India

6. Mr Subhash Agrawal,
Political analyst and
founder of India Focus
Outlook on Indian political
and economic environment

7. India’s Rise & its Implications
Economic, Policy & Political Trends
by
Subhash Agrawal
Helsinki, April 2017
India Focus

8. India: multiple realities

9. India’s Economic Reforms
(1991 onwards)

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• India is world’s 3rd largest economy in PPP terms, after China & the USA

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• Per capita consumption of China is 4,000 kWh, developed nations 15,000 kWh
• India became a net exporter of electricity for the first time in March 2017

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17. India: Monthly Passenger Car Sales
• India is 2nd fastest growing auto market in the world, after China

18. New Infrastructure: 40,000 km of roads being built

19. Indian Roads: Perfect Metaphor for Change
…as things were (or still are…)

20. Indian Roads: Perfect Metaphor for Change
…a new and gradual reality

21. Over 25 Years of Indian Reforms: Positive Developments
•Robust GDP growth
•Rise of India’s entrepreneurial class
•Rise & political influence of Indian middle-class
•Increasing impact of technology to empower citizens & customers
•Increasing links with global economy
•Change in attitude & mindset (political parties, local business, labour unions..)
•Greater transparency in public life & government (Right to Information Act)
•Changes in Laws & Judicial Approach (Public Interest Litigation)
• Focus on indegenous technology, products & methods (frugal engineering, Nano..)
•Bold moves, false moves, delayed moves  but overall direction is very positive
“India is a breathless mix of chaos, talent and adaptation.”
- Jack Welch

22. …But miles to go
India’s many remaining challenges
•Lopsided economic growth  vast internal disparity
•Terrorism, secessionism, insurgency  state machinery is stretched
•Uneasy relations between diff social groups  delays in consensus & decision-making
•Too much public noise  overheated democracy!
•Populism, both from Left & Right  fiscal irresponsibility, social cleavages
•Corruption, Cronyism & Bureacracy  uneven economic playing field
•Huge population, low social development  need major reforms in education, health and
welfare

23. Many positive changes, but large population dilutes impact

24. Biggest Challenge: India’s Rural Economy
• 27 percent GDP; 60 percent population
• Green Revolution of 1960s out of steam  farmer suicides
• Poor access to education, healthcare and jobs
• Rural-to-urban migration  slums, crime, congestion
• 40-50 percent of all non-defense public money is spent on rural welfare schemes
• Dangerous double track economy
•Huge consumption potential:
consumer goods/appliances – US $ 25 billion per year, growing 20% annually
motorcycles – 55 percent of national market
“Its actually rather amazing – even in Indian villages with no clean water, one can
probably now buy Coke or Pepsi.”
- Bloomberg magazine

25. Revisiting the Positive Side
India is increasingly linked to the Global Economy
•Steady economic liberalization – many changes in rules & laws
•Free Trade Agreement between India and many countries/blocs
•India increasingly connected to the world; trade-GDP ratio approx 52%
(2016), in comparison to 6% in 1985 and 22% in year 2000
•India major buyer of global commodities & precious metals - oil, coal & gold
•Indian companies are investing & expanding abroad
•2nd largest FDI investor in service sector in Europe

26. Outbound Investment by Indian Business
•Tata Steel acquires Corus Steel (UK); US $12 billion
•Aban Lloyd acquires Sinvest (Norway): US $446 million
•Tata Coffee acquires Eight O'Clock (US); US $220 million
•Hindalco acquires Novelis (Canada); US $6 billion
•Bharti Airtel acquires Zain (Africa); US $11 billion
•Lupin acquires GAVIS Pharma (US); US $ 1 billion
•Tech Mahindra acquires car designer Pininfarina SPA (Italy); US $ 200 million.
•Total stock of outbound FDI by Indian companies is now more than $85 billion
•Last 15 years, Indian investment overseas grew 35% annually (22% for inbound FDI)

27. Rise of India’s Middle-Class
•Indian middle-class market is bigger than combined East + Central Europe
•Visible urban wealth & optimism – rapid change in Bombay, Delhi & Bangalore
•Tier 2 cities booming (education, restaurants, travel, construction)
•Indian students in US are 2nd largest foreign group
•Validation & encouragement by continuing success of Indian Diaspora
VS Naipaul, Salman Rushdie, Amartya Sen
Indira Nooyi (Pepsi), Ajay Banga (Mastercard), Sunder Pichai (Google)
Bobby Jindal, Kamala Harris, Nikki Haley
•Growing influence of middle-class concerns via media & social activism (AAP)
•Visible change in attitude of political parties in response to middle-class
"Come to India. Visit your old job."
- mock travel slogan from a US comedy show

28. Political impact of the middle-class

29. India: Overall Political & Policy Trends
•Multiple crosscurrents -> difficult to “read the tea leaves”, even opinion polls are wrong !
•Since 1991, every national government has pursued economic reforms, albeit differently
•PM Modi has received historically strong mandate in 2014 & recently in 2017
•Regional parties continue to have influence in provinces
•Restless & young population + easy information access  trigger for aspirations
•Policy uncertainty due to frequent elections, uneasy coalitions and no clear “ownership”
•Despite many changes, crucial reforms needed in banking, labour, & judiciary
•Biggest business risk is not policy reversal  but delays, corruption and unpredictability
“In the first week in India, you feel you can easily write a book. After a year, it’s difficult to
write even a page.”
- senior US journalist

30. India’s Geopolitical Emergence
•Major paradigm shift in Indian foreign policy, mirroring fundamental societal change:
rigid ideology  pragmatism
asceticism & socialism  entrepreneurship & wealth
British-educated elites  US- educated elites
•Relation with USA: ‘estranged democracies’ to ‘engaged democracies’ to 'natural partners‘
•From non-alignment to implicit part of western Anglo-sphere
•Net donor nation (Indian aid to Africa, South Asia, SE Asia)
•India's democracy & multiculturism are respected as globally valuable assets
•India stands out because its 5 neighbours are ranked as “states most vulnerable to failure”
•India has an increasing footprint in global diplomacy

31. Implications for Nordic firms
• India’s rise is genuine, is social as much as economic, and is very impressive
--- but DIFFERENT from China !
• Huge internal market and young demography  demand-driven
• India has greater hedge against global recession than most other Asian economies
• Indian companies will in time become bigger, bolder , more globally skilled &
more cost-competitive
• India is slowly becoming a key political partner for Western nations on global issues
• Top caliber Indian expatriates returning home  valuable bridge between India & MNCs
• India’s rise faces serious domestic challenges and problems, but these can be overcome
• Domestic & global trends favour strong growth in India for many years
• Technology, Health, Energy  India has huge needs, Finland has deep expertise
“India is like the ‘spinach’ of experiences. It may not be easy, but it is very, very good for
you.”
- Mark Moxon, well-known travel writer

32. Q&A
Join the discussion
on Twitter
#TFIndiaDay

33. Mr Mika Lintilä,
Minister of Economic Affairs
Greetings from the
Government of Finland

34. Ms Padmaja Ruparel,
President of Indian
Angel Network

35. Padmaja Ruparel
Co Founder, Indian Angel Network
Co Chair, Global Business Angel
Network
Entrepreneurial India
The New Startup Nation

36. Impact of Entrepreneurship
• Globally, Innovative Startups are the real engine for creating
Employment and Economic Growth
• Kaufman report: US data between 1977 – 2005 shows that, except for 7
years, all net new jobs were created by startups
• US, Israel and other countries have transformed their economies by
creating an vibrant entrepreneurial ecosystem.
• Critical for South Asia to take the cue
• India alone needs to create 10-15 million jobs per year over next
decade
• And this CAN be done – Software industry has shown the way :
• US$ 50 mn. to over US$ 160bn in 25 years: US$250bn by 2020
• Largest employer in organized private sector
• 5 of top 10 IT service companies globally are from India

37. The New Digital India
• Heading to be one of the top 3 Global Economies
• 2nd largest internet user base : 277 mn, grew at 40% last year;
500mn by 2018 (Google); 50% active on Social Media
• 2nd largest mobile market in the world
• Online retail to touch $ 100 billion by 2020
• High mobile penetration of Internet – 220mn
• Highest share of mobile based ecommerce transactions @ 41%, US 15%
• Facebook - 115mn users : 2nd only to US, will surpass by 2017/18:
• 80% thru mobile
• Twitter - 35mn users, 76% on mobile
• LinkedIn - 30mn users; Pinterest – 70mn

38. The New Start-up Nation
• Amongst fastest growing start-up hubs globally – 19,500 start-ups
driven by
• Large High Growth Markets across several sectors – internet / mobile, IT,
education, healthcare, agri, cleantech, logistics, fintech, media / entertainment,
biotech / pharma
• Increasing availability of risk capital across all stages
• Availability of high quality talent
• Relatively lower cost base
• Govt. focus on enabling environment
• Successful role models
• CXOs / Senior Execs / NRIs joining start-ups or starting ventures
• India is the youngest nation in the world: 72% of the founders are <
35 years
• 50% growth of female entrepreneurs, 4.5X growth in funding
• PE/VC funding was $20bn last year, seed / VC funding up by 6.5X

39. Government NOW A Major Enabler
• “Startup India” : Integrated platform to promote entrepreneurship ;
special schemes for female entrepreneurs
• India Aspiration Fund : S$ 2 Bn Fund of Funds for startup
ecosystem
• Atal Innovation Mission: S$300mn to support incubation /
innovation
• Improving Ease of Doing Business: Ebiz portal / Mobile App to
speed approval / registration cycles (2 days vs months); self
certification for compliances; tax exemption for 3 out of 5 years, etc.
• Credit Guarantee Scheme : S$500mn for MSMEs
• SEBI setting up alternative trading platform for internet startups
with relaxed listing requirements. MSME Exchange already in place

40. Entrepreneurial Ecosystem Coming of Age
• Incubators: Academic Institutions, private, PPP : 100’s going to 1,000’s
• Accelerators: Mostly private with US / UK / Japan connects
• Many entrepreneur focused platforms: Key one is TiE, now 15,000
members in 61 chapters across 18 countries with 16 chapters in India,
NASSCOM’s 10K Startup Program
• Angel Networks / Crowd Funding Platforms: Many, Indian Angel Network
pioneered
• Largest Angel group globally within 8 years
• ~450 members globally, 7 locations incl. London, 130+ investments, 17
sectors, ~44% IRR, 8000 deals pa
• VC / PE Firms: ~150, invested ~US$20bn last year
• Rise of Domestic & Foreign Corporate Venturing in India
• Indian Family Offices now investing in Angel / VC / PE
• Funds of Funds: Govt and Private 40

41. Collaboration Across Countries
• Indian Entrepreneurs coming out of the woodwork, no longer only
westward focused
• Finland’s innovative ecosystem attracting Indian entrepreneurs : eg.
Slush Helsinki
• IAN has created global model of angel investing
• NASSCOM helped in creation of PASHA, SLASSCOM; IAN in
Lankan Angel Network; brought IAN to UK
• Increasingly overseas investors investing in India
Opportunities to collaborate / leverage markets, investments,
talent, business models & entrepreneur focused organisations
41

42. Finland – India Start up Bridge
• Startups cross the bridge to leverage:
• Market
• Talent
• Technology / Innovation
• Investment
• Investors cross the bridge to leverage :
• Investment / Co investment opportunities
• Build networks
• Growing portfolio companies
• Exits from portfolio companies
03-03-2016 Budget 2016 & Beyond 42

43. padmaja@indianangelnetwork.com
Thank You

44. Q&A
Join the discussion
on Twitter
#TFIndiaDay

45. Dr Shailja Vaidya Gupta,
Director, International
Collaboration; Department
of Biotechnology Ministry of
Science & Technology

46. Department of Biotechnology
Ministry of Science and Technology
Govt. of India
HOW TO LEVERAGE INDO-FINNISH
INNOVATION & R&D COLLABORATIONS
Dr Shailja Vaidya Gupta,
Director
International Collaboration
Department of Biotechnology
Email: Shailja.dbt@nic.in
Twitter:@himdaughter

47. CONGRATULATIONS FINLAND
ON 100 YEARS OF INDEPENDENCE

48. DEPARTMENT OF BIOTECHNOLOGY
PARTNERSHIP WITH FINLAND
• Memorandum of Understanding
(MOU) signed between DBT and
Academy of Finland, in July,
2005.
• Memorandum of Understanding
(MoU) signed with TEKES, the
Finnish Funding Agency for
Innovation in 2009.

49. DBT-FINLAND PARTNERSHIP
• 12 years of nurture has strategically focused on
the development of affordable, easy to use
diagnostics.
• 38 projects have been funded
• Valuable partnerships have been fostered
• Most important has been the positive impact on
the inflow of Indian students to Finland
•

50. Indo-Finnish Diagnostic Research Centre
An Indo-Finnish Diagnostic Research Centre has been setup with
collaboration between Translational Health Science and Technology Institute
(THSTI), India and the University of Turku, Finland.
 Affordable solutions for medical diagnostics : human health,
environmental and food safety
 Stimulate and promote interaction between Indian and Finnish
companies
 Capacity building in the area of advanced diagnostics: five post doctoral
fellows are already being trained in the area of diagnostics in Finland.
 Increased Exchange of students and researchers is envisaged

51. Soft Landing for Finnish Companies
• Aqsens Health, A Finnish Company, becomes the first
international company to incubate in Centre for Cellular and
Molecular Platforms (C-CAMP; www.ccamp.res.in)
• C-CAMP is a Department of Biotechnology supported
incubator
• Aqsens Health will develop accurate, low-cost saliva based
oral cancer screening product
• The setting up of Aqsens health has resulted from a project
funded by DBT and TEKES “Early Preventive Oral Cancer
Screening Project”

52. Success, big or small,
is inevitable, if we continue
our efforts towards
achieving it.

53. How can we leverage
Indo-Finnish Innovation and
R&D

54. India and Finland:
Diametrically opposite countries
• Population 5.3 million
• Homogenous
• Organised and planned
• Straightforward and simple
processes
• Population 1.3 Billion (approx.
200 times Finland)
• Heterogenous, madly diverse
• Unorganised and unplanned
• Complex and difficult

55. Surprising Similarities
• Both countries have historically been peaceful non-invaders
• Occupied for the longest time
And
• Believe that education is the only way forward
In different ways ( India the middle class/masses
understand that education is the only tool for progress even
bad education
Finland are world leaders in the craft of education)
• Believe enterprise is the only way for economic growth

56. What then can these two
diametrically opposite countries
with few similarities do to work
together?

57. In an increasingly inwardly looking
world,
The collaboration of two diverse
countries can be a model to the world,
Where we feed on cultural differences
and work on our strengths,
To take leadership role in what is called
“Science Diplomacy”

58. Perfect Business Sense
Problems are local; however in
a shrinking world no problem is local
• Solutions have to be global
• Markets are Indian

59. The Success Story of Digitized India:
• 95% ( 1.1 billion) people of India have digital proof of identity (the
Aadhar Card)
• The implementation of these cards have implications in datasets which
are mindboggling
• Building of Mobile Infrastructure with 79% of the population having
access to mobile phones
• Currently 28% of the population has a smart phone; growth rates are
close to 70% per year.
• The Govt is looking for Aadhar compliant applications
• BHIM (Bharat Interface for Money) which is a digital payments platform
with million of download everyweek
• The population is happy to adopt new mobile technologies which gives
them access to the best in for education, health and agriculture
practices.

60. “But it is very rare indeed that a country develops an
outsized technological infrastructure breakthrough
that leaves the rest of the world far behind.
But exactly this has just happened in India... and no
one noticed.”
Ref:
Article by Raoul Pal in
http://www.mauldineconomics.com/outsidethebox/ra
oul-pal-paying-attention

61. What is India doing for Ease of
Business
The Single point person for any enquiries about doing business in
India is
Mr Deepak Bagla
Managing Director & CEO,
Invest India
deepak.bagla@investindia.org.in
And the Department of Biotechnology:

62. Message from
Prof K VijayRaghavan, Secretary,
Department of Biotechnology
Ministry of Science and
Technology
Govt of India
“Finland is an important partner for my Department and India, I will
be your single point contact for setting up startups, enterprise in
India. I will work with Deepak Bagla, CEO, Invest India, to make
sure that we have in the next few years a sizeable presence of
Finland in India”
K. VijayRaghavan
Secretary, Department of Biotechnology
Ministry of Science and Technology
Government of India
Block 2, CGO Complex, New Delhi, India
vijay.dbt@nic.in
http://www.dbtindia.nic.in/
twitter/ facebook :@kvijayraghavan

63. It is my sincere hope that the next
100 years will be dominated by
smaller countries in collaboration with
India.
Thank you!

64. Q&A
Join the discussion
on Twitter
#TFIndiaDay

65. Let´s have a coffee break -
in 20 min we will be back with our
panelists
Join the discussion on Twitter
#TFIndiaDay

66. The companies’ panel
Moderator:
Mr Jukka Holappa
PhD, Commercial Counsellor
Finpro Ltd

67. PANELISTS:
Ms Maaria Ajanko, Business Development Manager, Stera Group -
Make in India
Mrs Ulla Koivukoski, former SVP, Comptel- Integrating cultures for
successful ICT-projects in India
Dr Linda Spedding, author of the book India: The Business Opportunity
Mr Hannu Jokela, Vice President, Kemppi - Welding excellence in India
APAC and Export Sales
Mr Kari Kautinen, SVP, M&A, Fortum - Energizing India, Solar and Wind
Development
Mr Vesa Perälä, Founder, Claned Group - Educating India
Mr Petri Vapola, CFO, Member of the Management Team, Lindström -
Caring for people in India

68. Why are we on Indian market
-Successes/setbacks
-Lessons learnt
-Recommendations

69. 1. INTRODUCTIONS
2. PRICE CONSCIOUSNESS
3. BUREAUCRACY & LEGAL & TAXATION
4. HOW CAN A FINNISH SME SURVIVE IN INDIA
5. INDIAN DECISION MAKING
6. SERVICE BUSINESS
7. TENDERS IN INDIA
8. RECRUITMENT&HR
9. YOUR ADVISES FOR COMPANIES WHO WANT TO EXPLORE AND
COME TO INDIA

70. Q&A
Join the discussion
on Twitter
#TFIndiaDay

71. Let´s continue discussion on
Twitter #TFIndiaDay
From our campaing site you can
download all presentations and
photos
Webcast video can be found in
Finpro´s Youtube

72. We warmely Thank You all!
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