Dhananath Fernando  00:12
Hello, hello! Welcome to another episode of Advocata Studio. I know our regular backdrop is not there today because we are recording at a separate location, which is the same place that we record our advocats, because we have some interesting and important news for all Sri Lankans, Sri Lankan businesses. That is about Sri Lanka and India trade, because everyone was talking about expanding to India. Again, I confess my voice is not the best today because I'm a little not well. However, while I am not feeling well, the news is quite very good for the Sri Lankan businesses. That is on opportunities to expand into the Indian market because everyone speaks about the growth story of India and how we should expand to India and the business benefits that we have. And there is some positive news on that front, but I'm not the person who knows about all the details about these initiatives. So I invited to our studio Priya Rawat and Sai Suda Chandrasekaran from Geeta to join us. Welcome to our podcast.

Speaker 1  01:16
Thank you. Thank you. Thank you.

Dhananath Fernando  01:17
And Priya is the founding partner of Geeta, and she was also the former COO for Invest India. Just Google and see what Invest India is all about. And Sai Sudha Chandrasekharni is the advisor for Geeta and also the CEO for India FinTech Foundation. Welcome again. For you, Priya, you said it's the first time. It's the first time

Speaker 1  01:38
for me. How

Dhananath Fernando  01:38
is Sri Lanka treating you?

Speaker 1  01:40
Amazing. I mean, it has not been 24 hours yet, but I'm already in love with Sri Lanka.

Dhananath Fernando  01:44
Brilliant, and of course, it's not the first time for you. First

Speaker 2  01:48
time. I absolutely love Sri Lanka. Sri Lanka is my favourite go-to destination, holiday destination. At least once a year, I've been coming here for many years, and I'm so glad to be here this time for a more impactful reason.

Dhananath Fernando  01:59
Lovely, but this time, both of you are here for something. From what we got to know, is for an important initiative. We heard about this India-Sri Lanka trade desk. I'm sure we have been all speaking about like you know trade between India and Sri Lanka, the free trade agreements, all sorts of things. But what is this new initiative? What is this trade desk? Can you elaborate a bit more, and what's this initiative is all about for someone who really doesn't know head or tail about it? What this what this India Sri Lanka trade desk is about, Priya?

Speaker 1  02:31
Firstly, thank you so much for having us here. India Sri Lanka desk, which will be launched today, is a structured facilitation mechanism which is an interface between the Sri Lankan businesses and the Indian market, and the idea behind this desk was to facilitate the interaction between the two sides, between India and Sri Lanka, where we already have a very close relationship, but we want this relationship to move to the next phase. So this desk is going to give the access to both sides of businesses to each other's to the other side of the country, and this desk is housed under the Indo-Champ of Commerce and Industry, Geeta Global Investment and Trade Advisors being their India partner or the India anchor there to give them that access.

Dhananath Fernando  03:20
Lovely. So who is the Sri Lankan partner? So Geeta is the Indian partner, and is there a Sri Lankan partner also in the trade? Yes,

Speaker 1  03:25
we have Indo Lanka Chamber of Commerce and Industries (ILCCI) who are anchoring in Sri Lanka and Geeta anchors in India.

Dhananath Fernando  03:32
And trade is always a two-way street, so there's always partners from both sides. So that's that's exciting news. So what does this mean how it is different from the previous occasions, if I may ask? Because there has always been many businesses from India who have invested here, and there are businesses, some businesses. I think it's not up to the expectations from Sri Lanka who have been in India, but it's not quite, quite, quite not a big number of businesses. But how it is different this time, Gita? If you could provide some, you know, if you can shed light on that.

Speaker 1  04:06
See, this is, I would say, not a traditional desk. I would say, which is or a conventional one where the the engagement is focused on events. Here, our focus is more on the outcomes,

Dhananath Fernando  04:20
right?

Speaker 1  04:21
What we had noticed that the businesses were facing challenges in terms of the access of information that they wanted from India, and especially for Sri Lankan businesses who were looking at entering in India, the information available was scattered. There was asymmetry in information, and having worked in this area of investment promotion and facilitation for over a decade for both of us. We felt that there was a need to bring something more structured and provide that handholding that is needed for the businesses who are looking at entering India. And you know, a lot of the times these the businesses feel that India is. Too intimidating, too big, too large to enter, but they don't know where to start with. And this desk is exactly what will be solving that problem for the businesses.

Dhananath Fernando  05:10
Sasha, just want to ask, like that's just from where Priya stopped. Now, lot of Sri Lankans, when we spoke to also those businesses, what they say is India is not like while it's one country, it's like multiple countries. Like you really don't know where to start. Whether you start from Chennai or Delhi or Bombay or Goa, it's like you know it's it's massive. So how this trade desk is going to going to help someone who really don't know about India, like where to start, or like through this desk, where can they start?

Speaker 2  05:47
Absolutely, I think where this day starts is right with your question. India is not to be looked at as one large homogenous market, like you correctly said. India has a collection of about 28 states and about eight union territories, and the beauty of India is everything works independently, and which sometimes is looked at as a complexity. So one of the key goals the Gita desk and the India Lanka desk is now trying to solve is one to build awareness. India is not to be looked at as a one-size-fits-all kind of strategy, it is not how you enter India. The most important or the first question you have to solve is where do you enter in India, and then you have to focus on one state, one incentive, choosing land in one place, and all this will sort of come together if you have the one right partner, and that partnership is what the desk tries to solve for. Handhold you, let you know about the different complexity of states, help you pick one state, and once you zero in on one partner and one state, everything sort of flows like a domino's effect for us in setting up the business.

Dhananath Fernando  07:00
Interesting. Also, wanted to understand now when someone, let's say, I mean, one of the main questions that we get is on these events and conferences. Sri Lankan businesses, when they want to expand to like a larger market, maybe India or some other country, but they have, as you said, access for some information. They don't know which market to penetrate. What is the regulatory barriers? Whether it's fall under free trade agreement. If it is not, like how to access. Like what's the first step to really get into it? Sometimes the big guys have the deep pockets. Probably they may they can hire a consultant or like they know they can reach out to through their business networks, or they can reach out directly with the partners on the other side of the ocean. But what should be the first step if someone is really thinking of expanding? Because we are a 20 million market. All the businesses kind of at one point has to think about expanding at the easiest market is India, while it is growing at a rapid rate, which we will discuss at at the latter part of this podcast. But what should be their first step if someone is considering to expand to India? If it's coming to the considerations, not like serious thought. Let's say, oh, I would also like to, you know, explore the Indian market. I have a furniture business. I want to consider the Indian market. I have a confectionary business. I want to check Indian market. Like, what is the first step that they should do?

Speaker 1  08:32
See, I mean, there are a lot of questions within this one question that you have asked, but I'll try to break it down. One, when you very clearly said that you have your own business and you would like to explore India. That is where we need to start. That is where the businesses need to start. You need to think: What do you want from India?

Dhananath Fernando  08:51
Right.

Speaker 1  08:52
Do you want to sell in India? Do you want to source from India? Do you want to manufacture in India, or do you want to partner with Indian businesses for for maybe technology, or you know, sharing of best practices, or or whatever could be your reason. So one is you have to have that clarity as to what are you expecting from the Indian market, and then comes the next step of identifying the right state, the right sector, the right partner, or you know the right investment for you, and that is how we move step by step. We help in assessing the opportunity that is there. We help in also assessing what will be the right fit for you, which will be the right sector for you, and which will be the right incentive applicable for you, and the kind of regulatory conditions that will be applicable to you. And then step by step, we help in helping you execute your plan in India.

Dhananath Fernando  09:42
Understood. Saisuda, just want to jump in here. So now the businesses, how probably from the little that I know, how they operate is, they first have a thought to expand, and they probably will evaluate multiple markets. Okay, whether I'm going to India, let's say Vietnam or Malaysia or wherever. And then probably they will need some information at the beginning. What Priya said was, when you make that decision, you first have to think of like at what level that you really want to engage. Whether you want information or whether you are going to sell, whether you are going to source, whether you are going to invest in India and manufacture in India, or like whether you want to bring a manufacturer here and invest, whatever. So, tell us in this process, is there also information? It also acts in a like a dual role, like it's also provide information and also it also helps hand holding to an extent. Once you design, you first give the information, then you evaluate all information with other countries, and then you decide. Okay, now I'm confident that I have to think of the Indian market. Let me explore a bit more, and I need to sell or I need to source. How does it happen? Is it also play as a dual actor? If so, how is being facilitated? See, for

Speaker 2  11:00
any business to a survive even in your local market or when you're growing cross border, the two most important bits apart from your co-product and manufacturing is a awareness information. Information is wealth when you're going to an unknown uncharted territory. A b the kind of trusted partnerships and network and relationships you build will compound over time. These are the two most valuable assets for any business from any part of the world going cross border. We understand this. Priya and I come from a eclectic mix of private sector background and public sector background, so we understand how the private sector would work, would function. What are their priorities, and how does it match with the public sector? Now, trying to build a bridge, the first step what we try and do is we understand your requirement and provide the first set of wealth information, which is helping you assess the market study, your entry strategy, your assessment. What is going to work for you? If we think in our assessment this may not work for you, we are going to be upfront and provide the information to you. While the decision is yours, our job is to give you the right amount of information for the business leaders in Sri Lanka to make the knowledge-informed decision. Right. So that is the first part. The second part is we intend being the end-to-end one-stop shop, right from information to helping you ground that investment and the aftercare. So the one-stop is only till grounding, but we are going one step further and saying there is a lot of aftercare support that we provide, which is what we have seen, the businesses survive, not just help them enter into the India, but help them navigate the India, establish the business, set up the plant, get the production running, get the manufacturing running for nine months, and get the first consignment exported out of where you produced it. Right. So those, the entire life cycle is very very important. We understand this process and we sort of handle them through the entire journey. Is the entire goal and what the intent of why Gita and the India Lanka desk is also being set up today.

Dhananath Fernando  13:14
Interesting. So if I understood right, so when you first need the information, that is pretty much the wealth that you first even for you to do a market estimation with different countries or markets, that information can also be accessed at the at the trade desk. For example, if you say, okay, I want to enter the Indian market to sell this product, you will have some information about. I say, if I want to enter Chennai or like to Delhi or like even to make that decision whether what is what is better for my product to enter Chennai or Delhi, that kind of information is available with you in terms of probably the population or the spread. We will be

Speaker 2  13:54
definitely able to advise you on, in a way, your entry strategy also right. A company might today be thinking of I want to come and let me start as a trading partner. But if the opportunity is ripe and unforeseen, untapped opportunity is there for you, why are you coming only for trading? Here is an opportunity for a JV for you to enter into manufacturing because you are going to get better ROI for in a period of three years or five years, so we'll be able to help identify JV partners. Or you want to come in in a way where you want to be a distributor, or you want to come in independently and set up, say in you know Madhya Pradesh or Tamil Nadu or Karnataka or Gujarat, help you tell what are the kind of incentive, what is the cost it's going to be so in a way to completely educate you through the entire life cycle of your journey in a five-year time period or a 10-year time period because the business decisions are not a one-year or a two-year; it's a five-year, 10-year time period forecast needs to be done before you decide an international entry strategy. So we will be, like you said, we are as a desk provides services through the entire cycle.

Dhananath Fernando  15:05
Lovely, Priya. Now, Sasuta mentioned the factor that the trust factor because when any company, when they are they want to reach out to a new partner or access a new market, the trustworthy partners are what everyone is looking for, whether they are reliable, whether they are authentic, because in a big market like India, you really sometimes by just sitting here cannot really figure out like whether they are reliable partners or not. So how Gita can assure like what's the process that the Gita runs on identifying the partners and reliable partners, like the Indus Sri Lanka, like the chamber works as a Sri Lankan partner, so they have the membership. How Geeta works on the other end to really identify these partnerships, who are the reliable partners? Is there a way that they register, or like how do you really pinpoint, or is it like, is there for someone who really doesn't know about the Indian market? Like, is there a government registry or something? How do you really identify these cherry pick or like provide assurance on the different partners? I we know because it could be manufacturing, it could be sourcing, it could be supplying, and it could be multiple industries. How does it work?

Speaker 1  16:19
See, you've rightly pointed out that you know finding that partner and the reliable trusted one is the biggest concern, and I would also say that there is no there is no dearth of interest on both sides. Both sides want to partner with each other. The only challenge that is coming right now is the lack of information, and also companies not being able to decide because they feel that you know what if I don't have this information and they are not able to take that informed decision and hence this is what is delaying the process of decision making and once the decision is taken the execution happens easily. Now what we are doing is we are not replacing the traditional financial or legal experts that are there in would any business would require to execute their plan in India, what Geeta does is we help them form that structured plan, help them get that in principle approval on on how execution will be done, so that it becomes easier for for the team to to actually you know execute their India plan and facilitate that India plan, given the access that our team has, having worked with and already working, we are also the official advisors to the government of Madhya Pradesh. We are working with different state governments and government at the centre. So, having that access, we are able to open the doors for those conversations for the companies to to to see for themselves as to you know this it's not something that you've given our given the requirements to us and we are doing something at the back end and you know coming up with a long list or a short list of companies that you need to partner with. We open doors for you to see for yourself as to you know how things are happening on ground. Give you that information that will help you in taking that decision and feel that this partnership would be right, and by partnership I would mean not just you know partners for businesses, partners for investing in a state. A state could be a partner, you know, a distributor, a supplier, or a buyer could be a partner. So those partnerships will happen when you actually see for yourself, have that information with you that will help you in taking that decision whether this partnership feels right for you or not?

Dhananath Fernando  18:22
Got it. And at the same time, the other main question is which sectors to invest, because there are, I mean, number of sectors. So if you were to, as an overview from the Indian front, like you know, with since knowing the business and being working at Invest India for a long time, and you being leading the fintech industry, which sectors, if Sri Lankans were to consider at the beginning, I know you can't really just give like a blanket advice on which sector to invest, but in terms of identifying sectors, how should you think about it? How does it work? What advice that you have to think? At least a framework when you're thinking about the sectors. How you should think about the sectors?

Speaker 2  19:10
You know, Sri Lanka and India have a lot of complementarities, right? In terms of the people, the culture, the talent pool. One of the largest thing that separates the two countries is the size and the intensity of the demography and the population. So a lot of sectors go hand in hand with what India, the market that we are providing and the opportunities that India has created. Sri Lanka can take advantage of lot of them, right? One example, or the most important example that I could sort of think of is different subsectors under the manufacturing. Manufacturing, you know, very easily you can put it as one bucket. Under that, there is textile, there is auto component, there is electronic component, there is food processing, there is maritime processing. All of this Sri Lanka has already been doing for a very very long. And your strategic location in the Indian Ocean also makes you a high potential and a very important partner than we already are to sort of each other, right? Today, I think India Lanka trade boasts of over about 7 billion, right? So there is potential for Lanka to leverage this and sort of improve on that as well, right? Sri Lanka has fantastic international world-class tourism assets, but that is something that we sort of can work together to see how we can improve the inbound tourists to Sri Lanka. How is that it can be marketed better here, right? So I was just recently telling someone, Sri Lanka is should be considered as a weekend getaway. Why are Indians travelling four hours, five hours when Lanka is anywhere between 45 minutes to a two-hour travel for most part of India? Should sort of be considered that kind of positioning. That has a huge, you know, tourism and hospitality is a huge opportunity. The logistics and maritime services, the amount of incredible amount of shipping routes Lanka brings to the world and to the global south is also sort of incredible. The manufacturing we have a lot of complement is digital services. The kind of talent pool, the kind of educational opportunities that can be brought here, the pool that can be mined here and sort of grown here can add incredible value. I was very happy to recently note, you know, the NPCI and the Lanka Pay. A couple of months it was sort of announced, right? You know, the fintech partnership between Lanka Pay and NPCI was sort of announced. That's an incredible development for the digital services also and IT talent pool. So there is no one or two sectors that we sort of can pinpoint in all parts of you know this investment facilitation that we see several sectors or almost all sectors in Sri Lanka very beautifully complements the growth of India and Sri Lanka should look at India as a growth partner and never a sort of a competitor. There is market for Sri Lanka to take care of. There's opportunity for Sri Lankan businesses sort of plug themselves into the supply chain and become a value chain player. So the end product is delivered to the global at a bigger scale by two countries sort of coming together. So you know there is opportunity in almost every sector. Is what I would strongly believe.

Dhananath Fernando  22:22
Got it, Priya. You have any other thoughts in terms of the sectors, like how, as a framework, to think about the sector? Since bringing your experience also as the CEO for Invest India in India for about I think 1015 years. So, how do you see in terms of the framework on the sectors that Sri Lankans should think about in terms of investing,

Speaker 1  22:46
of course, you know there are similarities and you know areas where we can see both of them can leverage each other. I'll just give one short example, a little more going into a little more details. If you take the sector for a sector, for example, textile, Sri Lanka has that expertise, the the quality and you know the the the precision that is needed, and India has the raw material. We are the largest cotton producer, and silk and and other raw material readily available in India. So the two can come together and build a regional value chain. India is promoting manufacturing. India has the scale; it has the domestic demand, and there is a push from the government also to to set up manufacturing in the textile sector and and set up the entire vertical, entire value chain. We have something called the PM Mitra Parks, which are the Prime Minister's manufacturing projects for textile, where the idea is to bring the entire textile value chain at one place. There is a place in Madhya Pradesh called Dhar Thar district. It is the largest cotton producing district in the state, and they've set up this textile manufacturing plant over there, so that the entire logistic can be managed, and you know we can set up the value chain over there. The idea of prime minister, our honourable prime minister, is is is 5F for textile, which is from farm to fibre to fashion to to sorry, I think I missed one. From farm to fibre to fabric to fashion to foreign, which is to take it to the exporting market. Right. So that's how we want to build the entire value chain. And Sri Lankan companies, with with their expertise in textile manufacturing, large scale manufacturing, and supplying to to the global brands, they can take advantage of this advantage of the scale and the incentives that are available for them to to scale up in a country which is so close to them. So that's how you know this is just an example in terms of textile. Then we have other sectors like food processing, we have automobiles, we have medical devices and pharma as well, where India is. Exporting to to the whole world, so you know sometimes the expansion doesn't always need to be in a far away land. Sometimes you know the the most important opportunities lie closed door.

Dhananath Fernando  25:12
Also, one of the main fears among Sri Lankan businesses are to compete with Indian brands because they believe the cost structure is, which is of course the benefit for India, because some of the cost factors it could be labour, sometimes energy, uncertain sectors. Whether it is fairly better, so we really cannot compete. So as a result, every time when there's a conversation about like opening up with India and trade, they think, oh no no, we really cannot compete with India. But at the same time, there are some companies who have successfully expanded to India. I don't want to mention names, but for instance, there's two giant fabric apparel exporters who are who have set up plants in India. There's a furniture exporter who is also setting up, and there's a pizza guy who is is a

Speaker 1  25:59
furniture exporter you.

Dhananath Fernando  26:00
Sorry, is

Speaker 1  26:00
the furniture exporter you? You mentioned you have a furniture company.

Dhananath Fernando  26:05
There's a furniture company called Damro, I think, who set it up in India, and there's a pizza chain I know which is in presence in Chennai. So likewise, I'm sure there are there are many probably which I even don't know. So do you think like for to convince the Sri Lankan side, or like you know, in terms of competing with Indian brands, why it is like possible? Because while the cost factors maybe differ from part to part, at the same time there are Indian investors also here in Sri Lanka who are doing multiple investments here, so including ports. So what is like you know why people if they are reluctant to think that they really cannot compete in the Indian soil, why you think like it is possible and why they should consider to invest in in India in your view?

Speaker 1  26:55
See, I would say and and coming back to the initial point where you know you you do not enter. You do not need to enter India as a whole. And one of the mistakes that companies make is is is treating it as you know entering India. It should not be you know entering India. It should be entering a state in India. So you start with a small focus and then try to expand. And if you look at some of the fast commerce stories in India, for example, you know somebody sitting at home ordering food, medicines, or you know supplies through Zepto, Zomato, Swiggy. That is not just you know fast e-commerce or fast retail. It is actually an entire infrastructure story that is happening in the country, where you know the the warehouses are closer to the customer, where data is linked in a manner where you have access, where the companies will have access to to things like you know demand to to the routes. Routes are optimised, and the roads are also managed in a way that you know delivery can happen within few minutes, we are getting things in five to six minutes delivered sitting at home. So that is something that we see, and this also gives companies the opportunity to try there and assess the demand and whether their products are working in in a single market without having to to invest into you know scaling up from the very beginning, they can start with a smaller area and see how it can be replicated across different other cities, or maybe even customised for different other cities. So that is how we feel that you know you start at it at one place and expand it, and and the expansion costs on you know moving to other cities and moving to other state is not much because you know you already have something which has worked out well for you, and you know the plan, you know how it will be done, and you can use that to to move and to expand to the other parts.

Dhananath Fernando  28:52
Lovely. Also, want to understand one of the main main challenges for Sri Lankan businesses, when they consider India, is also, as you said, like the thinking India is like a whole at the same time, and also sometimes they really don't have the know-how or the we call we call it the tips or like the techniques to really get in there. The little tips that they really don't know. If you were to share like some few tips about like you know, this is like you know sort of a checklist that you think about. You should think about when you're considering entering in India. I think you mentioned one. Don't think India is like as a whole. You start with the state. Is there like a checklist or like a guideline that you can think through how we should think about India.

Speaker 1  29:45
Yeah, I would say that there are different stages of investing in India and assessing whether you know India is the right fit and if it is the right fit, then how do you do it? So you start with the assessment of, like I said, that what do you want from India? You start assessing. What your requirements are, what your strengths are, our team helps you in evaluating those and matching it with what India has to offer. Then comes the next phase, which is you know actually engaging into conversations with the right stakeholders, so that you can validate what you have found out through the initial assessment. After those conversations with the stakeholders are done. We help in executing those plans. So the company needs to, you know, get access to the information, to the regulatory requirements, to the processes, and work on ultimately executing it. And that's where the team will help in actual execution of those project plans in India, and the team continues to then handhold them for the grounding of and also in terms of the aftercare because that is where the the the real challenge comes in when you're actually into operations and also a big decision making factor for whether you would like to stay or expand or you know sort of, you know, we wouldn't want, but exit.

Dhananath Fernando  31:02
Got it. Also, can you explain about the growth factors of the Indian market? Because you know, if you still look at on a per capita GDP basis, Sri Lanka is at 5000. India is a little below that. But we have been saying India is not the same India that we have seen like 1015 years ago, its middle class is rapidly growing, and the growth rates have been tremendous, especially the states which is in the southern side, and that has become like the engine of growth. And lot of tech companies, multinational companies are really considering seriously those southern Indian states to invest, and already they have moved in. So there's a lot happen in India from the little that we at least see here from this side, or even when you visit. Could you tell like why countries? I think this is probably coming from your previous job, like why the the countries, the businesses should consider investing in India with the new trends that are going on in geopolitics and world, like why someone should not avoid India in terms of investing.

Speaker 2  32:19
I think you know if you are not considering India, you are missing the bus, right? Today, India is now looked at globally as one of the trusted strategic partners and allies for almost a significant amount of the world, which means there is going to be geopolitical stability in the country, and India is one of the countries where the privatisation and the liberalisation started in India in the 90s. So that is about some 30-35 years ago. No matter which government comes, no matter which state you go to, there is a thematic stability of in large levels, stability of the policies, industrial growth has always been in the forefront for a country. What India is today, you know, India keeps changing every year, but today one of the most beautiful things that it has been recognised world over. Today, for example, an Andhra Pradesh does not, you know, compete with you know Uttar Pradesh. Andhra Pradesh independently competes with Vietnam. Uttar Pradesh competes with Indonesia. Tamil Nadu competes with Bangladesh, depending on which sector you are, right? So it is no more together we are one. We want to provide the government, the state, and the central, the two engines, completely recognise this and the kind of policies and the kind of you know bureaucratic push that we are having towards making this more and more refined is sort of very incredible. There are many states that today come and tell you, if you don't hear back from me, consider it as a deemed approval. The digitization, the single window policies, the kind of investment promotion arms every. I think 95% or more of all the states in India have their own independent promotion, investment promotion. You know, institution. The government has set up independent institutions. All this sort of signals, the sophistication with which each of the states sort of think about when it comes to providing what the investor wants. The government increasingly understands the private sector mind. The private sector mindset is time is money. The faster you let me go, the clarity you faster you give me the clarity, and the faster you give me the approvals, I will convert that into business opportunities. I will convert that into strengthening the economic corridor between my country and your. All these are becoming more and more sort of prominent, and you know it is well recognised. And India today is being built on these foundational stones, so it is only going to be better and easier. I really urge the Sri Lankan investors to not think of India as a complex nation because it is not true today. Perhaps for what some reasons you might have had that perception about India that was few years ago, and you've not tried India now. You should try India now. The kind of policies, incentives, and the partners, and how the public-private partnership sort of works there is quite incredible and at an accelerated pace. So definitely, if you know our audiences are still you know in two miles. Should I go now? How should I go? Is it easier for me to deal with one small country or one large country? Those days are gone. Like until we every state works independently as an has an institutional mechanism sort of set up. And once you enter one state, you establish yourself three years, four years, five years-the kind of expansion opportunities becomes so organic and easy moving from one state to the other state because you're already there in India. You've already done your research and homework. You've already established your network. Like I said, trust and network are the most important things for a business expansion point of you, so that's something I would urge Sri Lankan businesses to definitely keep in mind.

Dhananath Fernando  36:25
That's something definitely if all Sri Lankans think about. Priya also wanted to understand like how because both of you mentioned India is not like entire India. You just think as states, but also now we got to know that each state also has their own kind of investment promotion sort of institute who can provide like handholding or like you know provide the assistance. So how equipped Geeta as an organisation to reach out? Because are there any particular states that you mainly focus, or whether it's like overall India or like how do you where where the where are the strengths of Geeta in terms of assisting the businesses to you know operate in India or consider that like where where are the strengths that you see as an organisation that you bring it to the table?

Speaker 1  37:16
See, of course, Gita is has formal partnerships with some of the states in India, and it gives us an advantage to to provide that access to the companies in those states. But the team overall has a vast experience of working with with all of the states, all all all of the union territories, states and union territories in India, and we are able to sort of assess the the the strengths of the company and map it to the right state depending on their sector and help them in in identifying what will be the right fit and and you know we we're not going to be pushing them to the to the few states that the team is working with but the whole market is assessed by our team, and then the right opportunities identified for for the companies.

Dhananath Fernando  38:06
Also, in the final stretch, also wanted to understand since you both have experience in some other parts of the world, what are the critical mistakes that the investors do when they are trying to get to India? You mentioned one taking India as a whole, but what other mistakes that they do? Because there's a perception that India is also quite a bureaucratic. Sometimes it's not easy to get things done. You need to know how to get it done. It's same in Sri Lanka because we are all like South Asian nations. I'm just generally wanted to understand like what mistakes that easily an investor or like a company being carried away without really knowing the facts.

Speaker 2  38:47
Right. So, I think two most very invaluable things that the investors should sort of bear in mind when they are coming to India is not come with this preconceived notion or a perception. Oh my God! It's going to be difficult. The regulatory environment is difficult. It's a very large market. I'm going to be lost. Such kind of dropping the preconceived notion and coming to India will already make access to India a lot more comfortable, sort of, for you. Number one, number two. It's very important for you to do your homework to find right set of partners who can do two things: one, help you set up in India, and two, help you compound your network in India. Right? One, it could be for entry today. The kind of network your partner brings to you adds value to you could add value to you two years down the line, three years down the line. So I think these two are very very important in terms of assessing which market, how to enter JV versus distributing. All these are numbers game, right? You understand. You sit with your you know PNL. You sit with your cost. You. Sit with your, you know, expenses, and these are some decisions that take place purely on an Excel sheet. But beyond that, these are two very important aspects who will help you get a very comfortable and trusted partner who can help you enter into India and don't come with preconceived notions. I think these two would be extremely valuable when you are looking at international expat. Given the proximity Sri Lanka and India has, given the coastal you know area, the width coastline Sri Lanka has, and the very large coastline India as a subcontinent has. Imagine the kind of synergy both of them can sort of have for trading, for you know investments or manufacturing coming together and complementing the value chain, providing a safe supply chain haven for the entire world between Sri Lanka and India. There is a huge little under tapped potential is there. So those are some things I would urge the Sri Lankan business to go optimistic and go positive, and while entering India.

Dhananath Fernando  41:01
Yeah, any other thoughts from you? The mistakes that anybody could do easily when considering investing in India.

Speaker 1  41:06
I think for me, the biggest mistake that the businesses make is delaying or not taking the decision soon enough. They keep waiting for the right information, and also not finding the right partner who can open up the doors for them, who can open up the right conversations for them, which will help in expediting that decision and also helping in taking the the right decision.

Dhananath Fernando  41:28
Also, could you quickly shed light on the regional structure because that's another concern for a lot of people. Because from state to state, from one union to the other, the rules change. I don't know how it is, so that assistance can be taken from the desk. Is it?

Speaker 1  41:44
Of course, yes. The desk is there for that very purpose. You know, if you look at the political map, you will see the 28 states and union territories. But if you see the sector map, you will see a different kind of distribution, and it will vary from each sector to sector. If you look at the infra map. If you look at the logistic map, you will see those trends. And what our team will do is put all those layers together so that you can actually see where those those synergies are making and helping you identify where you get the maximum overlap, so that it becomes more fruitful for you, more aligned to your businesses.

Dhananath Fernando  42:19
Okay, my anything that I have missed. My final question is like, did I miss anything that I could have asked? But I already didn't know about the trade desk. But you want to really bring awareness to our audience. Anything that we miss out, or anything that you want to bring out with regarding to the trade desk between India and Sri Lanka?

Speaker 1  42:40
I think one of the questions that we get asked a lot is, you know, whether this desk will be able to help the smaller SME companies or whether it will be helping the large conglomerates who will be benefiting more and whether it is for me or not. What we we'd like to say is that you know it is going to be helping both because the needs for them are similar, the challenges may be different, but what they are expecting from India is is similar. For large conglomerates, it may be just opening up the doors to conversations with the right stakeholders, be it in the government or maybe get more access to the policy makers and the decision makers because their challenges are a little different and at a different level, and they they do not need support at at a at an on run or an execution level. For a small business, it may be different, and the challenges could be you know finding the first supplier, first distributor, or you know sort of getting information about the incentives or policies applicable to them. So the desk does support both both of these segments, and for the large conglomerates, we help open up those conversations, get them access to the right people, and for the the SMEs, we help on the with the on ground support that they need and handholding.

Dhananath Fernando  43:56
That's very important. You mentioned that because as we discussed, about 99% of our business establishments are micro, small, and medium enterprises. So even SMEs, SMEs are like some SMEs are quite cash rich and they still fall under the SME category. But they have the leg power to really expand, and that's how they become big companies. Also, what is the fee structure, the cost structure? If someone comes, is there is there a fee? There a charge that they have to pay, or is it depending on the assignment, or is it free of charge? How does the trade this works? And like, what's the capacity? Like, is it where is it open? Where people can come and meet? Where's the office? Where's the is there a telephone number? I don't. We can even put it at the bottom. But just tell like if someone really want to access, how really can they come and access you?

Speaker 1  44:45
I share the email address with you, but the desk is open for the Sri Lankan businesses to to who are looking at exploring India, and I would say the services with. Respect to assessment of the opportunities and a at a very broad level are open and you know we do not charge for for it because we are housed under the Indo Lanka Chamber of Commerce and Industry, but for company that requires a more detailed and a more customised strategy to be developed, which requires more sort of you know handholding, that will be sort of on a commercial basis, and the team can help them understand how it can be worked. And

Dhananath Fernando  45:28
what's like the size of the team who will be operating between India and Sri Lanka on this trade desk, also with the Sri Lankan counterparts? Like, how big is the team? Like, how what's the assurance that they can receive proper service in this regard.

Speaker 1  45:42
So we have a dedicated team of three members for which who will be working on the Indo Lanka corridor. But as a team, we are also working across different state governments. We are working across different sectoral ministries. So that also gives them an access, and you know there is a sharing of resources and access across those teams as well, so it becomes an extended team that is providing that kind of a matrix of services across sectors and states in India.

Dhananath Fernando  46:09
Anything else that I that I miss or anything else? Any final thoughts that we have to bring out to our audience?

Speaker 2  46:15
No, absolutely. I think you've done a fabulous job of covering what we are, who we are, overview of India, overview of Lanka, and very we learned a lot of things by your kind of questions and how the Sri Lankan businesses would sort of thing. So I think you fairly covered. I mean, if you know your audiences have any certain questions, you have our email ID. They can feel free to reach out to the desk and us, and we're very happy to support them.

Dhananath Fernando  46:39
Wonderful. So we will put the in the description. Please follow. We will share the email address and all the necessary information. So if you are willing to consider India as an investment option or expanding, it could be sourcing, manufacturing, or depending on your requirement. I think this is the time you have to inquire and evaluate that option according to Gita, it is. We should not miss the bus, and I'm sure all global statistics indicates India is a growing economy, and they will have about, if I remember right, if my memory serves me right, about 300 million middle class in few years' time, and that's like kind of equivalent to the U.S. market that we are already exporting avocados and certain other export products. So that's where we are at the moment. I hope this will be a real success. And thank you very much, Priya Rawat and Sai Sudash Chandra Sekharn for joining us for this podcast and sharing these insights. So which would be helpful for our businesses to invest and consider, and hope you will pretty much jam the basically the hotline and the email by asking so many inquiries about investing, and probably the trade will flow. Both sides, as Advocata, as you know, we strong very we stand very strongly about global trade because without trade, you really we will not really reach the prosperity that we aspire to be. So always the trade is a two-way street. That's something that we need to always keep in mind. And we produce something with a competitive advantage, and we exchange it with something else, which also on the other side have a competitive advantage. And that's where how the trade moves and the world moves. And that's why, as Advocata, we stand for global trade and globalisation, and working with each other. And also, that also comes with human dignity and respect, because by trading, you show the respect to the other side of the story and to the other partners who are engaging with you. And that's how, as a as a human nation, that we are basically flourishing as a unit. So thank you very much again, and thank you very much from audience. Don't forget to subscribe us. At the same time, we are all in Advocata Plus in Singal and Advocata Kural in Tamil. At the same time, you can find us on LinkedIn, Instagram, WhatsApp, TikTok, on all sorts of YouTube and social media channels. We'll see you with a similar episode with valuable information and insights under Advocata Studio. See you.


Transcribed by https://otter.ai