SICCI, ESG offer SMEs support to expand into Uttar Pradesh

Singapore

SINGAPORE'S small and medium-sized enterprises (SMEs) looking to expand overseas should consider the opportunities in South Asia, specifically the Uttar Pradesh state of India, leaders from the local Indian business community said in a webinar on Thursday.

Uttar Pradesh boasts the third largest economy in India, a population larger than that of Brazil and the biggest proportion of micro, small and medium enterprises (MSMEs) in India, about 14.2 per cent of the country's total.

The automotive industry, manufacturing and agriculture are just a few of the promising areas Singapore investors and firms can explore in the state, said Gautam Banerjee, chairman of the South Asia business group of the Singapore Business Federation.

The webinar titled "Business investment opportunities in Uttar Pradesh" was organised by the International Business Division (IBD) of the Singapore Indian Chamber of Commerce and Industry (SICCI) to create awareness of the opportunities for collaboration and investment in the Indian state.

It was held in collaboration with SICCI, Enterprise Singapore (ESG), the government of Uttar Pradesh and the PHD Chamber of Commerce and Industry. The event was attended by Uttar Pradesh cabinet minister of MSME and Export Promotion, Sidharth Nath Singh and India's High Commissioner-designate to Singapore P Kumaran.

Mr Banerjee, who is also chairman of Blackstone Singapore, noted that while Singapore continues to be the largest source of foreign domestic investment in India, investors are less familiar with Uttar Pradesh than with better-known regions like Tamil Nadu.

"It's good that Singapore investors learn about a new place, a new territory, and we can then spread our wings further," said Mr Banerjee.

During the webinar, the Uttar Pradesh government called for a collaboration between the MSMEs and SMEs in both nations, and suggested setting up a joint venture group with SICCI.

It also highlighted aerospace, food processing, electronic vehicles and new technologies as areas that Singapore SMEs could invest in.

The IBD, which is set to launch officially in Q4 2020, will work to identify sectors in India and Uttar Pradesh that Singapore companies can consider as investment destinations. SICCI chairman T Chandroo said the division was set up in response to interest and enquiries from companies and SICCI members about growing opportunities in the South Asia market.

"SICCI is well-placed to assist businesses as they seek to internationalise into India," Dr Chandroo said.

South Asia offers opportunities in energy, education, healthcare, financial services and manufacturing, noted Tay Lian Chew, global markets director for South Asia at ESG.

ESG has been helping brands like CapitaLand, Napier and Shopmatic seize some of these opportunities through its three overseas centres in India.

The statutory board also has a memorandum of understanding with Invest India to provide a one-stop service for Singapore companies keen on doing business in India. The two organisations have jointly hosted webinars on opportunities in food processing, agri-sourcing, automotives and electric vehicles.

Other opportunities for collaboration lie in India's startup scene and ecosystem. ESG launched a Global Innovation Alliance with India last year to promote a two-way flow of startups and ecosystem players.

"Through this initiative, several virtual missions have been led, where Singapore startups were exposed to the rich startup ecosystem in India. This has helped them to access the market and funding there," said Mr Tay.

"We will also be linking up Indian startups who could benefit from Singapore's ecosystem. We will be keen to work with startups and ecosystem players in Uttar Pradesh to explore similar collaborations."

IBD chairman Prasoon Mukherjee said the organisation has been working closely with the SME community in Singapore, assisting them to better understand the grants and financial aid available to help them through this crisis while continuing to encourage them to explore expanding into markets like India.

"We want the SMEs not to lose sight of the need to build resilience and lay the foundation for growth in the coming years," Mr Mukherjee said.