CII Communique March 2018

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Communiqué March 2018 | 1

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Contents Volume 40 No. 3 March 2018
newsmaker
05 Strengthening Ties with Canada
07 India offers ‘Red Carpet’ to Korean Industry
spotlight
10 Auto Expo 2018: Revving up for the Future
mindspace
16 Leveraging the Value of India’s Demographic Dividend
focus
18 India's Business Footprint in the UK
21 Indo-UAE Relations Gaining Momentum
advocacy
38 MSME: A Sector in Transition
41 Tackling Banking Malpractices
plus...
Portfolio for
Excellence
Building Capacity
Engaging with
the world
REGIONAL REVIEW
... AND MORE
cover story
25 Charting New India’s Global Integration Strategy
The Partnership Summit, in its 24th
edition this year, brought
over 2500 delegates from 40 countries together for a close
examination of the partnerships and synergies to spark the
next phase of global growth, and develop strong multi-country
linkages and networks to assist the transformation of the
global economy.

4 | March 2018 Communiqué
N Srinivasan
18 November 1943–4 March 2018
Obituary
The Confederation of Indian Industry (CII) deeply mourns the death of
Mr N Srinivasan, 'NSR' as he was popularly known to many.
He passed away after a brief illness on 4 March in Bengaluru.
NSR joined CII (then AIEI) in 1974, and, through more than three
decades of service to the organization till his retirement in 2007,
worked in many capacities, and was involved in, led, and directed,
several initiatives for industry and for CII.
He served as the Director General of CII from 2004 to 2006.
NSR was 74. He is survived by his wife, Mrs Bhama Srinivasan,
and two daughters, Sunita and Aarti.
CII pays homage to the visionary leader.

Strengthening
Ties with Canada
newsmaker
Mr Justin Trudeau, Prime Minister of Canada, visited Mumbai, Ahmedabad,
Agra, Amritsar and New Delhi from 19-23 February. CII was honored to lead
and support the various business programs of the Prime Minister’s visit
Narendra Modi, Prime Minister of India, and Justin Trudeau, Prime Minister of Canada, engaging with CEOs from Canada and India,
at the India-Canada CEO Dialogue in New Delhi
India-Canada CEO Dialogue
Mr Narendra Modi, Prime Minister of India, and Mr Justin
Trudeau, Prime Minister of Canada, addressed Canadian
and Indian CEOs at the India-Canada CEO Dialogue,
organized by CII in association with the Department
of Industrial Policy and Promotion (DIPP), Ministry of
Commerce and Industry, on 23 February in New Delhi,
capping a week of substantive business engagements
by the Canadian Prime Minister.
Prior to this meeting, the CEOs met with Mr Suresh
Prabhu, Minister of Commerce and Industry, and Mr
Ramesh Abhishek, Secretary, DIPP, as well as Mr
Navdeep Bains, Minister for Innovation, Science
& Economic Development, Canada.
Mr Suresh Prabhu called for increasing
investments and said trade should not be seen
in a limited way. While CEOs set the business
agenda, it is the Government’s responsibility to
facilitate business and remove specific challenges,
he said. India-Canada relations have tremendous
potential, said the Minister, noting that the
Canada Pension Fund can find huge opportunities
in India, especially in the infrastructure sector,
for long-term investment.
Canada is open to trade, investment and people, stated
Mr Navdeep Bains.
Indusry speakers at the closed door interaction
shared their experiences of investing in each other’s
country, and the issues and challenges faced by their
companies, with focus on sectors such as defence
production, infrastructure, financial services, and energy
collaboration.
Ms Shobana Kamineni, President, CII, and Executive
Vice Chairperson, Apollo Hospitals Enterprise Ltd, called
for deeper collaboration with Canada in a multitude of
sectors.
Ms Kamineni also interacted with MrTrudeau at a women
business leaders roundtable held earlier in Mumbai.
Ramesh Abhishek, Secretary DIPP, India; Suresh Prabhu, Minister of Commerce and
Industry, India, and Navdeep Bains, Minister for Innovation, Science & Economic
Development, Canada, at a meeting in New Delhi

CII, in partnership with the Canada India Business
Council (C-IBC) and the Indo-Canadian Business Council
(ICBC), organized the India-Canada Business Forum on
‘Innovation and Business Connectivity’ on 22 February,
in New Delhi.
Mr Navdeep Bains called for increased Canadian-Indian
collaboration to enhance innovation and business
connectivity to expand two-way trade and investments.
The aim of the Canadian Government, he said, is to
invest in people and technology to help companies scale
up, with an innovation and skills plan to skill and re-skill
people towards developing a vibrant innovation and
start-up eco-system in the country. Indian companies,
he suggested, could use Canada as a gateway to the
North American market. In addition, with the signing
of the Canada – EU FTA, Indian companies would get
access to the European market as well, he said.
Ms Bardish Chagger, Minister of Small Business and
Tourism, and Leader of Government in the House
of Commons, Canada, in her keynote address, said
innovation is taking place in every sector and every
region of Canada, with major focus on promoting women
entrepreneurs.The Canadian Government is collaborating
with the Hyderabad based T-Hub to come up with new
solutions in areas such as Artificial Intelligence and
Digital Technologies, she added.
Mr Hari Bhartia, Past President, CII, and Co-Chairman &
MD, Jubilant Life Sciences, said his company entered
Canada seeing great opportunity in the field of nuclear
medicine, where Canada is a leader. Canada has a great
innovation eco-system which they have been able to
leverage to bring new drugs to the market, he said.
India-Canada Business Forum
Joint India Canada Business Session
Prime Minister Trudeau gave the keynote address at the
Joint India Canada Business Session, led by CII, along
with other chambers, on 22 February in New Delhi.
The Prime Minister of Canada spoke of the need to
broaden and deepen the historic friendship as well as to
strengthen business and economic ties. Both countries
believe in supporting democracy and value diversity, he
said. Indian companies such as Wipro, Infosys and TCS
have great investments in Canada, and several Canadian
companies are invested in India, he said, stressing that
Canada is great for business.
Ms Harsimrat Kaur Badal, Minister of Food Processing
Industries, spoke of the tremendous reforms and various
measures undertaken to open the Indian economy to
FDI. The food processing sector has attracted huge
investments lately, she said, inviting Canadian companies
to invest in cold chain development, where Canada
has expertise.
The two countries could collaborate in areas such
as start-ups, agriculture and food processing, mining
and metals, skills development, and the Clean Ganga
Mission, suggested Ms Shobana Kamineni.
Kasi Rao, President & CEO, C-IBC; Navdeep Bains; Hari Bhartia, Past President, CII, and Co-Chairman & MD, Jubilant Life Sciences,
and Nadira Hamid, CEO, ICBC, at the India-Canada Business Forum, in New Delhi
Harsimrat Kaur Badal, Minister of Food Processing Industries;
Justin Trudeau, and Shobana Kamineni, President, CII, and
Executive Vice Chairperson, Apollo Hospitals Enterprise Ltd,
at the India Canada Business Session in New Delhi
newsmaker

I
ndia is ready for business and is open to investments,
stated Mr Narendra Modi, Prime Minister of India,
opening the high-powered India-Korea Business
Summit on 27 February in New Delhi. The Summit was
organized by the Ministry of Commerce and Industry
in partnership with CII, Invest India, Chosun Ilbo and
KOTRA.
Inviting Korean companies to invest in India, Mr Modi
said India's software and Korea's technology can mesh
well. Both countries can combine various other strengths
too, in sectors such as renewables, power, clean tech,
steel, and IT & ITeS, among others, to emerge as strong
partners in Asia, he said.
Earlier, the Prime Minister interacted with CEOs
of leading Korean companies at a closed-door
roundtable.
India offers
‘Red Carpet’
to Korean
Industry
Mr Paik Un Gyu, Minister forTrade, Industry and Energy,
led a 350-strong Korean delegation to India, comprising
of Members of Parliament, representatives of Korean
industry bodies, and CEOs of top Korean companies.
The reforms undertaken in India have led to greater
collaboration between the two countries, said Mr Paik
Un Gyu. To further strengthen the bilateral relationship,
he called for a re-negotiation of the India-Korea
Comprehensive Economic Partnership Agreement
(CEPA), and its expansion in the light of current
developments. He also expressed the need to step up
cooperation in manufacturing as well as infrastructure
development, including Smart Cities.
“The Korean experience of handling their economy
has indeed been inspirational for India,” stated Mr
Arun Jaitley, Minister of Finance and Corporate Affairs.
Narendra Modi, Prime Minister of India, with (L-R) Chandrajit Banerjee; Bang Sang-Hoon; Ramesh Abhishek, Secretary, DIPP; Paik Un-Gyu,
Minister of Trade, Industry and Energy, Korea; Suresh Prabhu, Minister of Commerce and Industry, India; Song Young-Gil, President, India-Korea
Friendship Association of National Assembly of Korea, and Shobana Kamineni, at the inaugural of the India-Korea Business Summit in New Delhi
newsmaker
Narendra Modi, Prime Minister of India, being greeted by Chandrajit Banerjee,
Director General, CII, and Shobana Kamineni, President, CII, and Executive Vice
Chairperson, Apollo Hospitals Enterprise Ltd, at the India-Korea Business Summit in
New Delhi. Also seen: Park Yongmaan, Chairman, The Korea Chamber of Commerce
and Industry, and Bang Sang-Hoon, President & CEO, The Chosunilbo

Korean companies,
with their constant
focus on innovation
and technology, have
strengthened the Indian
economy and added
to its development,
he said, observing
that there is hardly
any Indian household
without a Korean
presence – whether
in terms of automobiles, electronic products, etc.
Mr Suresh Prabhu, Minister of Commerce and Industry,
stated that the potential for cooperation is immense.
The two countries could work together in areas such as
marine and food products, chemicals, pharmaceuticals,
environment technology, R&D for third countries,
start-ups and logistics, as well as future industries, he
suggested.
There is growing interest amongst Korean companies
about India thanks to the reforms that have been
undertaken, said Mr Ramesh Abhishek, Secretary,
Department of Industrial Policy and Promotion (DIPP),
Ministry of Commerce and Industry.
Ms. Shobana Kamineni, President, CII, and President,
CII, and Executive Vice Chairperson, Apollo Hospitals
Enterprise Ltd, suggested that Korean companies can
look for opportunities in sectors such as chemicals,
automobiles and auto components, food processing
and textiles. In addition, Korean companies could also
consider investing in the servicification of manufacturing
in India as well as the vibrant start-up space in the
country, she said.
Welcoming the Prime Minister’s initiative to replace,
'red tape' with a 'red carpet,' Mr Park Yongmaan,
Chairman, The Korea Chamber of Commerce and
Industry, observed that India's economy looks like it
is on a very solid track.
FROM THE SESSIONS
Electronics System Design and
Manufacturing
“The rapidly expanding digital profile of India, backed
by the Prime Minister’s vision of Digital India, Start-up
India, and Skill India, is transforming the country into
a knowledge economy and a digital powerhouse. This
provides enormous opportunities for Korean companies
to invest in the Indian market, and to ‘Make in India’
not only for India but for the neighboring markets
of Middle East and ASEAN as well,” said Mr Ravi
Shankar Prasad, Minister of Electronics, and Information
Technology.
Chemicals
Speakers at this session invited Korean companies to
invest in India, develop a strong presence in the market,
and forge partnerships with Indian industry.
Textiles
“For scaling up this special
strategic relationship, it
is crucial that we actively
identify and leverage
t h e s y n e r g i e s a n d
complementarities that
exist between the two of
us," said Dr Anant Kumar
Singh, Secretary, Ministry
of Textiles. We have 66
textile parks with suitable
infrastructure, he said,
inviting Korean investment.
newsmaker
Arun Jaitley, Minister of Finance, and Corporate Affairs, with (L-R) Anand Mahindra, Past President, CII, and
Chairman, Mahindra Group; Ramesh Abhishek, and Deepak Bagla, CEO & MD, Invest India
Pankaj Gulati, Chairman, Electronic Industries Association of India (ELCINA); Nitin Khade, Secretary, IT,
Assam; Yoon Boo Keun, Vice Chairman, Samsung Electronics; Ravi Shankar Prasad, Minister of
Electronics and IT; Sanjay K Rakesh, Joint Secretary, Ministry of Electronics and IT; Rajive Kaul,
Past President, CII, and Chairman, Nicco Engineering Service Ltd, and Srinivasa Rao Dhurvasula,
Vice President, Andhra Pradesh Electronics and IT Agency

the two countries to strengthen our partnership. It is a
significant tool for two forward-looking, business-minded
countries with significant complementarities, which must
be utilized," said Ms Rita Teaotia, Secretary, Commerce,
Ministry of Commerce & Industry.
Technology & Innovation
The discussions in this session centered around the
India-Republic of Korea Joint Applied R&D Program, a
bilateral program to promote industrial R&D between
the two countries. The program, which is technically
and administratively managed by the Global Innovation
& Technology Alliance (GITA), promoted
jointly by CII and the Government of
India, offers a conditional grant of up to
`1.5 crores to Indian industry.
Food Processing
Mr J P Meena, Secretary, Ministry of
Food Processing Industries, highlighted
the opportunities for Korean companies,
including technology development, cold
chain development, food retail, and food
safety and quality, among others.
Automobiles
It is the Government’s endeavor to make the New Auto
Policy industry-friendly, said Mr Anant Gangaram Geete,
Minister of Heavy Industries and Public Enterprises. We
are trying to make a foolproof policy, to ensure the
success of Make in India, he added. The Minister stated
that his Ministry would strive to continuously adapt and
modify the policy to keep pace with the changing times,
and invited Korean companies to consider developing
technology in India.
India – Korea CEPA
Mr C R Chaudhary, Minister of State of Commerce
and Industry, felt that, given the ongoing upgradation
of the India-Korea CEPA, this would be the right time
for increased partnership in healthcare, especially post
the announcement of a massive public health services
plan in Budget 2018-19. This was in cognizance of the
fact that health services are not an open sector under
the CEPA.
"The India-Korea CEPA is the main instrumentality for
newsmaker
Jayesh Rajan, Principal Secretary, Industries & Commerce, Telangana; J Krishna Kishore, CEO, Andhra Pradesh Economic Development Board;
Dr Pawan Goenka, MD, Mahindra Group; Anant Gangaram Geete, Minister of Heavy Industries & Public Enterprises; Dr Asha Ram Sihag,
Secretary, Heavy Industries, Ministry of Heavy Industries & Public Enterprises; Vishvajit Sahay, Joint Secretary, Heavy Industries,
Ministry of Heavy Industries & Public Enterprises; K Gnanadesikan, Additional Chief Secretary, Industries, Tamil Nadu;
Nirmal K Minda, President, ACMA, and Manohar Bhat, Head of Marketing & Sales, KIA Motors India
Suhail Sameer, CEO – FMCG Business, RP-Sanjiv Goenka Group;
Parag Gupta, Joint Secretary, Ministry of Food Processing
Industries; J P Meena, Secretary, Ministry of Food Processing
Industries; Jung Yun Kang, Vice President, Lotte Confectionery Co
Ltd, and Siraj Chaudhry, Chairman, Cargill India
Dr Park Jin, President, Asia Future Institute; Rita Teaotia, Secretary, Commerce, Ministry
of Commerce & Industry; C R Chaudhary, Minister of State of Commerce & Industry;
Dr Ahn Choong-Yong, Former Chairman, Korea Commission for Corporate Partnership,
and Sanjay Chadha, Joint Secretary, Commerce, and Chief Negotiator
for the India-Korea CEPA

spotlight
automobiles
T
he Auto Expo, over
the years, has grown
tremendously, and has
transformed itself into a
global event.
Giving the due and desired
focus to both automobiles
and auto components,
Asia's largest automotive
show, jointly organized by
the Automotive Component
Manufacturers Association
of India (ACMA), CII, and the
Society of Indian Automobile
Manufacturers (SIAM) was
held as two complementary
events, at two different venues, as Auto Expo 2018 -The
Motor Show, from 9 to 14 February in Greater Noida,
and the Auto Expo 2018 - Components Show, from 8
to 11 February in New Delhi.
While the Motor Show 2018 was spread across 74,000
sqm, hosting all the automobile majors in 14 indoor
exhibition halls, the Auto Expo–Components
Show had seven country pavilions and
participation from 1204 companies, including
846 domestic and 358 international exhibitors
from 20 countries, across an area of 60,000
sqm in seven halls and three hangars.
Under the over-arching theme of ‘Mobility for
All,’ the Auto Expo 2018–Components had
a focused theme –‘Automotive Technologies
that Drive the World,’ emphasizing on
innovation and futuristic technologies,
demonstrated through the latest technological
display and strong participation.
Auto Expo 2018 – Components was
jointly inaugurated by Mr Suresh Prabhu,
Minister of Commerce and Industry, and
Mr Anant Geete, Minister of Heavy
Industries & Public Enterprises.
Speaking at the Inaugural, Mr Prabhu urged
the auto components industry to focus
on higher value-addition, and to actively
participate in global automotive value chains
(GVCs) rather than the current global supply
chains.
M r G e e t e s a i d t h e
Government would soon
announce a comprehensive
auto policy with the focus
on global competitiveness,
eco-friendliness and
sustainability.
The Auto Expo Component
Show, in its 14th
edition
this year, successfully
showcased path-breaking
t e ch n o l o g i e s , b o t h
domestic and global, to
address the challenges
the auto industry is facing
in India and the world,
to over 1,15,000 people, including decision-makers,
sourcing and vendor development teams from OEMs,
overseas buyers, professionals, consultants, and
students. Several exhibitors launched new products
and technologies in conformance with BS VI and other
safety regulations.
Revving up for the Future
Inaugurating Auto Expo – The Motor Show, Mr Anant G Geete,
Minister of Heavy Industries and Public Enterprises, felicitated the
auto industry for supporting the Government in its endeavors. He
welcomed the Auto Expo as a platform bringing together the entire
automotive fraternity on a level plinth.
This year’s theme of ‘Co-Create, Co-Exist and Celebrate,’ with
focus on the ‘Entire Mobility Eco-System,’ was reflected through
special zones on e-mobility, motorsports, an auto gaming arena,
future decoded (VR zone), 70 years of Indian automobility, et al,
which provided visitors a holistic experience of the industry.
The Auto Expo 2018 – Motor Show had a footfall of over 6,00,000.
Like previous editions, this year too drew glitterati including cinema
and sports luminaries, such as Shah Rukh Khan, John Abraham,
Akshay Kumar, Sonakshi Sinha, Taapsee Pannu, Gul Panag, Rahul
Khanna, stand-up comedian Kanan Gill, SachinTendulkar, Mohammad
Azharuddin, Gautam Gambhir and R P Singh, among others.
This year's Motor Show showcased 14 new brands, notably from
Kia Motors India, India Kawasaki Motors and Cleveland CycleWerks,
and eleven start-ups. Besides the display of over 100 products,
there were 22 fresh launches, 81 product unveilings and 18 concept
showcases, as well as 25 electric vehicles.
Auto Expo – The Motor Show
THE
MOTOR
SHOW
9 - 14 FEBRUARY 2018
INDIA EXPO MART, GREATER NOIDA, UTTAR PRADESH, INDIA
2018

SPOTLIGHT
Vinnie Mehta, Director General, ACMA; Chandrajit Banerjee, Director General, CII; Shobana Kamineni, President, CII, and Executive Vice
Chairperson, Apollo Hospitals Enterprise Ltd; Anant Gangaram Geete, Minister of Heavy Industries & Public Enterprises; Nirmal K Minda,
President, ACMA, and CMD, UNO Minda; Suresh Prabhu, Minister of Commerce & Industry; Abhay Firodia, President, SIAM, and Chairman,
Force Motors, and Vishnu Mathur, Director General, SIAM, at the inaugural of Auto Expo 2018 – Components Show in New Delhi
Glimpses of the show

Overseas delegations from countries like Bangladesh,
Canada, France, Germany, Indonesia, South Korea,
Taiwan, UK, and USA attended the show and conducted
successful business meetings.
Over four days, the event hosted the signing of
407 MoUs, expressing interest in joint working, and
generated over 67,705 business enquiries. In a special
endeavor, it provided a defined platform to students
to participate in a contest, ‘Weaving Synergies –
Spot the Innovation,‘ while also offering students the
opportunity to network and interact with key people of
the automotive sector.
In a bid to make Indian roads safer, and to sensitize
the public towards their responsibilities on the road,
ACMA showcased a special pavilion on ‘Safer Drives’ –
which encouraged motorists to use genuine auto parts,
and inculcate good driving habits. There were focused
pavilions on Bearings and Garage Equipment too.
At the 3rd
New Delhi Automotive Summit 2018, on
‘Making the Indian Auto Component Industry future
ready,’ held on 7 February, national and international
automotive experts discussed mobility technologies
for the future.
‘Make in India has great relevance for our India operations. We will continue to expand on the
front of power-train products for ICE engines. Making India our global manufacturing hub by 2025
is my dream.’
Takashi Nagata, MD, Denso International India
‘We are delighted to be present at the 14th
Auto Expo. It has always been our home ground for
displaying what we stand for and how we are evolving, and this year is no different. We have chosen
‘Excellence’ as our theme for this year, reflecting in all our global quality products. Excellence has
been our core strength in our journey so far.’
Tarang Jain, MD, Varroc Group
‘We have seen high engagement - the response this year has been better than our expectations.
We see Auto Expo as a platform to engage with the whole automotive ecosystem.’
K D Sahni, Joint MD,
Elofic Industries
‘Our company stall is seeing good footfall of business visitors. The 2018 Auto Expo Components
Show has been very busy for us. I can clearly see that customers are now more focused on the
BS VI emission norms and are looking for cost-effective solutions. They are also looking for solutions
around electro mobility.’
Manish Padharia, MD, ARaymond Fasteners India
'For us, this year's Auto Expo is all about where we are going - we have showcased our BS-VI
solutions focusing on fuel efficiency and emission control, along with futuristic electrification solutions
which we are ready to offer right now. We are a mechatronics company and have demonstrated
our product and technology strengths here.'
Arvind Balaji, Joint MD, Lucas TVS
EXHIBITOR SPEAK
Other events and activities during the Expo included
the 6th
Regional Workshop Owners Meet of AIAWA
(All India Automobile Workshops Association), Auto
Waters 2018 - Driving Towards a Sustainable Future
for the Auto Sector, a seminar on the opportunities
for suppliers in xEVs, and the Indo-German working
group meeting.
Lucas TVS, part of the TVS Group, made an electrifying
presence at the show demonstrating its future-readiness
for both the electric mobility drive and the BS-VI shift
that the country is set to witness in the coming years.
The company had lined up four e-rickshaws equipped
with e-drive at the venue for business associates and
visitors to experience the smooth ride delivered by an
India-developed and manufactured electric motor and
controller.
The exhibition successfully achieved its aim of
developing multilateral and bilateral trade relations with
the attendance of high-level overseas delegations and
participation from over 67 countries.
After four days of the event, the exhibitors wanted to
add another day to the components show, a strong
testimony to the quality of the event.
spotlight

BYTES
‘The 14th
Auto Expo Component
Show has been an unparalleled
event, it showcased the
capabilities of Indian component
makers for the world market.
The auto component industry’s
zeal in propelling ‘Make in India’
is truly appreciable.’
Shobhana Kamineni, President, CII,
and Executive Vice Chairperson,
Apollo Hospitals Enterprise Ltd
‘The expo has received an
overwhelming response from
exhibitors and trade visitors alike.
It truly reflects the potential of
the Indian auto component
industry and its readiness for
the future. It is noteworthy that
the exhibitors displayed next
generation products compliant
with the recent emissions, safety and
environmental norms prescribed by
the Government of India. Further, top
leadership from most OEMs and IPOs
showed active interest in the products
and technologies displayed.’
Nirmal Minda,
President, ACMA
‘Today, the Indian auto
component industry contributes
to more than half of the average
exports of the automotive
industry. The Auto Expo-
Components Show is a
platform where exhibitors show
their maturity and technology
prowess to their potential customers. In
the light of the disruptions the industry
is bound to face, it is heartening to see
the Indian auto component industry
all geared up to take the bull by the
horns.'
Abhay Firodia,
President, SIAM
‘Indian auto component makers
remain among the most
competitive and innovative
in the world. The industry is
witnessing huge shifts due
to acceleration in electric and
hybrid vehicles, increasing
standards for clean and efficient
use of energy, customer expectations,
and rising penetration of roads and
highways. Quick product development
and flexibility are critical for the
sector and it is making admirable
improvements. This edition of the Auto
Show-Components marks the large
presence of MSMEs in component
manufacturing and automation,
showcasing India’s potential as a
preferred outsourcing destination for
components manufacturing for the
global market. This is the only platform
which gives the MSME sector the
opportunity to meet the top industry
leaders from the automotive industry.’
Chandrajit Banerjee,
Director General, CII
‘The Auto Expo-Components
Show 2018 is a barometer of
the industry’s competitiveness.
Like each year, this time too
the show has out-performed
its earlier editions with great
aplomb and elan. Since the first
Auto Expo Components Show
in 1986, we have come a long way
on every scale. I can say that in three
decades it has become a world class
show. One of the big highlights this year
was the increased focus on technology.
The industry has to be compliant with
various regulations relating to emission
norms, environment and safety. We are
graduating from BS IV norms to BS VI,
with incoming deadlines.’
Vinnie Mehta,
Director General, ACMA
SPOTLIGHT

The conference
‘Auto Water
2 018 : D r i v i n g
t o w a r d s a
S u s t a i n a b l e
Future for the
Auto Sector,’ was
organized by the
CII–Triveni Water
Institute on the
sidelines of the
Auto Expo on
10 February, to
focus on achieving
higher standards of efficiency and competitiveness of water
use in the auto sector.
Justice (Rtd) Swatanter Kumar, Former Judge, Supreme Court
of India, and Former Chairperson, National Green Tribunal,
highlighted the need for compliance to environmental regulations
through social consciousness by building awareness among
the people. He called upon companies to incorporate social
responsibility into their principles, to promote water conservation
efforts, Emphasizing the difference between conservation
and management of water, he said both are necessary to
tackle the water crisis in the country, and called for collective
responsibility and effort.
We need innovation in both the demand and the supply side
management of water, said Dr Madhukar Gupta, Additional
Secretary, Department of Public Enterprises, Ministry of Heavy
Industries & Public Enterprises. The best practices of countries
like Israel that have overcome their water deficit could be
adapted to overcome local water issues, he suggested. The
auto sector, a core part of the Indian economy, needs to steer
the water management initiatives for industry, he said.
Mr Ashok Taneja, MD & CEO, Shriram Pistons & Rings Ltd,
described several water conservation initiatives adopted by auto
companies like Honda and Maruti within their premises.
Mr Neeraj Munjal, MD, Shivam Autotech Ltd, called for a
collaborative effort among stakeholders to achieve efficient
water management. He cited the green vendor development
initiative of Hero Motocorp which produced a multiplier effect
to enable water conservation in 70 allied companies.
The technical session of the conference presented state-of-
the-art technologies and methods on water use efficiency with
successful case studies.
spotlight
Conference: Auto Water 2018
Neeraj Munjal, MD, Shivam Autotech Ltd; Justice
(Rtd) Swatanter Kumar, Former Judge, Supreme
Court of India, and Former Chairperson, National
Green Tribunal; Ashok Taneja, MD & CEO, Shriram
Pistons & Rings Ltd; and Dr Madhukar Gupta,
Additional Secretary, Dept of Public Enterprises,
Ministry of Heavy Industries & Public Enterprises,
at the Auto Water conference in New Delhi

implement policies that engender confidence in the
economy.
Mr M Venkaiah Naidu, Vice President of India, in his
inaugural address, emphasised the need to suitably employ
the country’s rural youth population. “You cannot stop rural
migration until you provide similar facilities in the villages.
We need to focus on making youngsters in rural India
employable. It is critical to re-orient policies and programs
to suit our growing employment and livelihood needs.
What is important for India right now is self-respect, self-
employment and development,” he said. He urged large
companies to each adopt a district and impart skilling to
local youth, with a definite focus on specialty training in
technical as well as popular job roles.
Echoing these sentiments, Mr Narendra Singh Tomar,
Minister of Rural Development, Panchayati Raj and
Mines, pointed out that
“job creation should be
the collective responsibility
of both Government and
industry. In order to promote
rural Micro, Small & Medium
Enterprises (MSMEs),
products created by these
clusters should be facilitated
to reach newer markets, he
said.
Mr Giriraj Singh, Minister of
State (Independent Charge)
of Micro, Small and Medium
Enterprises, laying emphasis
on the extensive involvement
of industry, felt that “industry
should don the role of social
India Skills Report 2018
CII launched the India Skills Report
2018 at the Conference on Jobs
and Livelihood.
The India Skills Report is an annual
endeavor of CII and its partners
to present a quantitative and qualitative
analysis of demand and supply in the labour market.
The 2018 Report takes stock of the talent landscape
by analyzing the employability of youth and the
needs and expectations of employers. Currently
in its 5th
edition, the Report also captures various
initiatives taken by the Government and their impact
on economic growth.
The Report is a joint initiative of CII, PeopleStrong,
Wheebox, Pearson India, UNDP and AICTE.
Leveraging the
Value of India’s
Demographic
Dividend
I
ndia is at the forefront of a new economic paradigm.
Further adding to its growth matrix is the country’s
rich demographic dividend.The emerging demographic
dynamics of the country ensure that it will have one of
the youngest populations in the world, with the bulk of
the population belonging to the working age category.
By the year 2026, 64.8% of Indians are expected to
be in the working age bracket. The global workforce
is expected to witness significant inclusion of Indians
in the next couple of decades. It has been estimated
that while the world is likely to encounter a shortage
of 47 million working people by 2020, India will have
a surplus of 56 million working people.
CII, in partnership with NITI Aayog, organized a
conference on ‘Jobs & Livelihood Creation – Critical
Growth Enablers’ on 8-9 February in New Delhi, to
explore how to leverage the
value of India’s demographic
dividend through the fruitful
engagement of the youth
via an enabling ecosystem
that provides for jobs and
livelihood.
In addition, the conference
also examined how to drive
public and private partnership
to create jobs and train the
new workforce, encourage
global trade, address the
challenges likely to be
imposed by Industry 4.0,
improve the education
system, attract investment
to support innovation, and
mindspace
jobs and livelihood

mindspace
entrepreneurs and work in rural areas to provide
employment opportunities.”
Mr Rakesh Bharti Mittal, President Designate, CII, and
Vice Chairman, Bharti Enterprises said that industry
and Government have to synergize better, so as to
motivate the youth and meet the impending challenges
in creation of jobs and livelihood.
The Indian job market has unique requirements, said
Mr Rajiv Kumar, Vice Chairman, NITI Aayog, observing
that “we cannot copy paste models from different
countries. NITI Aayog is working on a model which will
be unique to India to make sure that the youth of the
country get the job that they aspire for.”
The conference featured eight engaging sessions,
which followed a definite outline leading to the desired
technical outcomes. The aim was to trigger a dialogue
between various stakeholders – representing Central
and State Governments, think-tanks, multilateral
agencies and industry – to examine the drivers of India’s
livelihood creation and outline potential scenarios that
can plausibly guide actions, both in terms of policy and
business strategy.
Ms Smriti Irani, Minister of Textiles, and Information &
Broadcasting, addressing the Valedictory Session, cited
several initiatives being taken by the Textiles Ministry
to create greater livelihood opportunities for artisans,
weavers and disadvantaged sections of the society, not
just in terms of financial support but also skilling.
The conference hosted the launch of the CII India
Skills Report, as also the exchange of a MoU between
CII and Maruti for opening Model Career Centres in
50 ITIs adopted by Maruti. Mr Chandrajit Banerjee,
Director General, CII, exchanged the MoU with Mr
Mukesh Kumar Gupta, Vice President, Maruti Suzuki
India Ltd.
The first batch of interns trained under the Indo-Japan
Technical Intern Training Program were also given their
offer letters during the event.
M Venkaiah Naidu, Vice President of India, at the Conference on Jobs and Livelihoods, in New Delhi, with (L-R) Chandrajit Banerjee,
Director General, CII; Narendra Singh Tomar, Minister of Rural Development, Panchayati Raj and Mines; Dr Rajiv Kumar, Vice Chairman,
NITI Aayog; Giriraj Singh, Minister of State (I/C) of Micro, Small & Medium Enterprises, and Rakesh Bharti Mittal, President Designate, CII,
and Vice Chairman, Bharti Enterprises
Bibek Debroy, Member, NITI Aayog; Smriti Irani, Minister of
Textiles, and Information & Broadcasting, and Arun Nanda,
Chairman, CII National Committee on Skill Development, and
Chairman, Mahindra Holidays & Resorts
Giriraj Singh; Narendra Singh Tomar, and Chandrajit Banerjee with the first batch of interns trained by CII under the Indo-Japan
Technical Intern Training Program

C
II and the Indo-British All Party
Parliamentary Group organized
a historic showcase of Indian
companies in UK at the British Houses
of Parliament in London on 1 February.
The ‘Manchester India Partnership’ to
enhance regional connect was also
launched on the occasion.
The first-of-its-kind historic showcase
of high-growth Indian companies in
the UK provided parliamentarians a
great opportunity to interact with
several Indian business leaders and
representatives from across the UK.The
program, hosted by Mr Virendra Sharma
MP, Chair of the Indo-British All Party
Parliamentary Group, was supported
by Grant Thornton and the Manchester
India Partnership (MIP).
Mr YK Sinha, High Commissioner
of India to the UK, along with key
dignitaries from the UK, including Baroness Rona
Fairhead CBE, Minister of State, Department for
International Trade; Mr Matthew Hancock, Secretary of
State for Culture, Sports and Media; Lord Jim O’Neill,
Dr David Landsman, Chair, CII India Business Forum,
UK, and Executive Director,Tata Ltd; Mr Andrew Cowan,
CEO, Manchester Airport Group and Chair, Manchester
India Partnership, as well as 20 MPs and peers across
party lines representing various constituencies and
regions of the UK attended the program, reinforcing
the narrative to strengthen UK-India ties further.
Over 100 stakeholders, including Indian companies,
parliamentarians, government representatives and
institutional partners, also participated in this unique
event to highlight the major success stories of UK-India
economic cooperation.
Dr David Landsman, reflecting on the increasing footprint
of Indian companies and their huge contribution across
the UK, observed that there has probably never been
more attention on the economic relationship between
the UK and India, as India undertakes significant market
reforms, and the UK prepares to leave the EU.
He also moderated a rapid-fire panel discussion in
game show style, where the UK representatives of
high-growth companies such as Tech Mahindra, Hero
Cycles, ICICI Bank, HCL Technologies, and Air India,
spoke about their investments, employment and regional
presence across the country, institutional collaborations,
and interesting achievements and initiatives.
Highlights from two reports, the CII-Grant Thornton
‘India Meets Britain’ tracker and the CII-UKIBC ‘India
in the UK: India’s business footprint in the UK’ were
shared on the occasion.
The 4th
edition of the tracker reveals how 800
Indian companies in the UK sustain 110,000 jobs
and generate GBP 47.5 billion in combined turnover,
across sectors such as technology and telecom,
pharmaceuticals and chemicals, business services,
financial services, engineering and manufacturing,
energy, media, healthcare, automotives, transport and
logistics, hospitality and tourism, food and beverage,
and education. While 44% of Indian companies in the
UK are based in the capital, nearly a quarter are based
in the South, with 15% are in the North and 11% in
India's Business
Footprint in the UK
focus
YK Sinha, High Commissioner of India to the UK, Lord Jim O'Neill; Baroness Rona Fairhead,
Minister of State for International Trade, UK; Matthew Hancock, Secretary of State for
Digital, Culture, Media and Sport; UK;Virendra Sharma MP, Chair, Indo British APPG;
Dr David Landsman, Chair, CII IBF UK, and Executive Director,Tata Ltd, and
Andrew Cowan, CEO, Manchester Airport Group, at the showcase of
Indian companies in UK at the Houses of Parliament, In London

the Midlands, says the report.
MrYK Sinha called for more such interactions to highlight
Indian success stories and the strengthening of the
UK-India relationship.
Applauding the celebrations under the UK-India Year of
Culture, Mr Matthew Hancock said digital innovation
and technology and broadcast media have great scope
for collaboration.
“You need to hear the numbers to realize how
significantly Indian companies have invested and how
good that is for job creation and for innovation in our
country”, said Baroness Rona Fairhead, welcoming the
participation of regional stakeholders, especially from
the North, in the Manchester-India partnership, which,
she believed, would play a big role in enhancing the
wider UK-India relationship. “Many Indian companies
have set up base in Greater Manchester, including
HCL Technologies, ICICI Bank, Hero Cycles and Tech
Mahindra – whose success stories demonstrate the
strength and potential of the Northern powerhouse.
I am excited to see what the future holds for this
natural partnership, ” she said.
The Manchester-India Partnership
The Manchester-India Partnership (MIP) was launched
on the occasion as a public private initiative aimed at
building closer ties with India. It encompasses the full
scope of country to city interaction: trade, investment,
science and innovation, connectivity, and culture.
Chaired by Mr Andrew Cowan, the MIP leadership team
consists of senior
r e p r e s e n t a t i v e s
of Manchester ’s
business, university
and public sector,
presenting a joined-
up and strategic
approach to one of the
UK’s most important
i n t e r n a t i o n a l
partners.
The founding partners of the MIP are the Manchester
Airport Group, Deloitte, Growth Company, MIDAS, Greater
Manchester Local Enterprise Partnership, and CII.
Launching the MIP, Lord Jim O’Neill remarked, “The
Manchester India Partnership is an exciting initiative
which recognizes the rising importance of international
cities in forging strategic international partnerships.
India is one of the world’s largest and fastest-growing
economies; it therefore makes eminent sense for
Manchester to further develop its air connectivity, trade,
science and cultural links with this emerging global
power," he said.
Walkthrough Exhibition
A walkthrough exhibition of Indian companies such as
Tata, Tech Mahindra, HCL Technologies, ICICI, Union
Bank, Hero Cycles, Air India and Varana World, among
others, represented the diversity of sectors where
Indian companies operate, encompassing technology,
manufacturing, services, banking and financial services,
tourism, fashion and luxury products.
focus
Glimpses from the event

T
he United Arab
Emirates (UAE)
occupies a key place
in India’s West Asia policy.
The relationship has been
gaining greater impetus
in recent times with the
substantial increase in
political and diplomatic
engagements.
A new momentum was
given to the partnership
in January 2017 when
the two sides signed
t h e a g r e e m e n t o n
Comprehensive Strategic Partnership
(CSP). There are on-going discussions to
finalize the proposed $75 billion investment
fund for India’s infrastructure projects by
the UAE.
With an objective to enhance UAE-Indian
interaction, and to showcase investment
opportunities in Abu Dhabi, the UAE
Department of Economic Development, in
coordination with CII, the Embassy of UAE
in New Delhi, and the UAE India Business
Council, organized the Abu Dhabi Week in
India 2018 in New Delhi on 5-6 February
and in Mumbai on 8-9 February.
The event showcased investment opportunities in
energy, tourism, industry, healthcare, infrastructure and
financial services through multi-city roadshows, B2B
meetings, and the Abu Dhabi Investment Forum.
A high-level 120 member-delegation from 23 leading
UAE organizations, such as Etihad Airways, the Higher
Specialized Economic Zones (Zonescorp), Abu Dhabi
Chamber of Commerce and Industry, Abu Dhabi Systems
and Information Center, Department of Health, Abu
Dhabi Water & Electricity Authority, Emirates Global
Aluminum, Al Dar, Emirates Steel, Mubadala, Miral,
Abu Dhabi Businesswomen Council, Abu Dhabi Ports,
Al Ain Zoo, and the Abu Dhabi Sports Council, took part
in the Week, which also featured cultural and folklore
performances from the UAE and India.
CII at the World Government Summit
CII organized a high-powered CEOs delegation to
the World Government Summit (WGS) in Dubai from
Indo-UAE Relations
Gaining Momentum
focus
Richard A Quest, CNN International Anchor & Reporter; Shobana Kamineni, President, CII, and Executive
Vice Chairperson, Apollo Hospitals Enterprise Ltd; Sunil Kant Munjal, Past President, CII, and Chairman,
Hero Enterprise, and C P Gurnani, MD & CEO, Tech Mahindra Ltd, at the World Government Summit in Dubai
CII leadership at the Banquet hosted by the Crown Prince of UAE in honor of
Narendra Modi, Prime Minister of India, at the Presidential Palace, Abu Dhabi

11-13 February, coinciding with the visit of Mr Narendra
Modi, Prime Minister of India. The 6th
edition of
the annual WGS, an initiative of the UAE Federal
Government, witnessed an outstanding Official Guest
Country Address by the Prime Minister of India.
During the visit, the delegation members had the
opportunity to join the Official Banquet held in honor
of the Prime Minster of India by Sheikh Mohammed
bin Zayed Al Nahyan, Crown Prince of Abu Dhabi,
and Deputy Supreme Commander of the UAE Armed
Forces.
The delegation also participated in the Gulf CEOs
Session at the WGS held in the presence of Mr
Narendra Modi.
Vice Chairperson, Apollo Hospitals Enterprise Ltd; Mr
Sunil Kant Munjal, Past President, CII, and Chairman,
Hero Enterprise and Mr C P Gurnani, MD & CEO, Tech
Mahindra Ltd, were the panelists at the plenary session
on ‘Will India Lead the Global Economy in the Future.’
They shared their views on the Indian economy, and the
efforts of the Government to strengthen infrastructure,
education, healthcare, technology and other various
sectors with a global audience.
The CII CEOs visit coincided with the formal
announcement of the opening a CII UAE Office for
the Middle East Region, to be located in Dubai.
Meeting with Abu Dhabi Business
Women Council
CII organized the meeting of Abu Dhabi Business
Women Council with a select group of Indian women
entrepreneurs under the aegis of the CII Indian Women
Network (CII IWN) on 5 February in New Delhi.
Ms Rumjhum Chatterjee, Co-Chair, IWN, and CII
Women Empowerment National Committee, and Group
MD and Head – Human Capital, Feedback Infra Pvt
Ltd; Ms Divya Chauhan, IWN New Delhi Chair, and
Chairperson, Amity School of Fashion, Fine Arts &
Technology, and Ms Priyanka Nijhawan, IWN New Delhi
Vice Chair, and Director – Representations, Nijhawan
Group, met the members of the Abu Dhabi Business
Women Council. They included Ms Fatima Mohammed
Ishaq Al Awadhi, Deputy Director General, Insurance
Authority; Ms Reed Hamad Al-Shiryani Al-Dhaheri,
Board Member – Abu Dhabi Business Women Council
and Abu Dhabi Chamber of Commerce & Industry, and
Mr Shafiqa Al-Ameri, Director, Abu Dhabi Business
Women Council.
Meetings with Abu Dhabi Chamber
CII organized exclusive meetings with Mr Saif Mohamed
Al Hajeri, Chairman, Abu Dhabi Department of Economic
Development, and the accompanying team from the
Abu Dhabi Chamber of Commerce and Industry, for
select Indian CEOs in New Delhi on 5 February and
Mumbai on 8 February.
Both sides discussed modalities to take forward the
various opportunities that have arisen post the visits
of the leadership from both countries. It was mutually
agreed to focus on specific sectors such as healthcare,
defence, skills, SMEs, and education. Both sides also
agreed to promote continuous engagement between the
two countries through visits and participation in events,
and to institutionalize the visit of CEOs delegations
once a year.
In New Delhi, Mr Rakesh Bharti Mittal, President
Designate, CII, and Vice Chairman Bharti Enterprises, and
Mr Chandrajit Banerjee, Director General, CII welcomed
the visitors. Dr Ahmed Albanna, Ambassador of the
UAE to India, was also present.
In Mumbai, Mr Ninad Karpe, Chairman CII (WR) and
Director, Aptech Ltd, chaired the interaction.
At the Meeting with representatives of the Abu Dhabi Chamber of
Commerce & Industry in Mumbai
focus
Abu Dhabi Business Women Council members with CII IWN
members in New Delhi

Abu Dhabi Investment Forum
The Abu Dhabi Investment Forum, held in New Delhi and
Mumbai on 6 and 9 February respectively, highlighted
Abu Dhabi's position as a global gateway for business,
investments and cultural exchange, as also the UAE’s
strategic partnership with targeted countries. Focused
sectoral sessions displayed the potential of new
opportunities.
Manufacturing, Infrastructure & Energy
The Emirate of Abu Dhabi has achieved significant
growth rates in non-oil activities over the last ten
years, mainly in manufacturing, with official forecasts of
good growth over the next three years. The Emirate’s
advanced infrastructure including air, sea and land
routes and ports, as well as technology infrastructure,
has given the UAE a leading position in terms of global
competitiveness.
From CII, the panel discussion was moderated by Mr
Ratul Puri, Chairman, Hindustan Power Projects Pvt Ltd,
in New Delhi, and Ms Suparna Singh, Vice President
Corporate Planning (Steel Business), Essar Services
India Pvt Ltd, in Mumbai.
Tourism & Health
Tourism activities, mainly in accommodation and
food services, are expected to grow by an average
of 7.6% from 2018-2020, with a 6.5% growth rate
expected for the arts, recreation and other services,
in Abu Dhabi. The healthcare sector too has witnessed
remarkable development, with an increasing number
of both health professionals and licensed healthcare
facilities.
This session was moderated by Mr Amresh Tiwari,
Hon Secretary, IACB, and Hon Treasurer, IATO, and
Vice President, SITE India, in New Delhi, and Mr
Joy Chakraborty, Chairman, CII WR Core Group on
Healthcare, and COO, Officer, PD Hinduja Hospital, in
Mumbai.
Finance and Banking
The Abu Dhabi Economic Vision 2030 sees the financial
sector as an important economic tool to achieve
economic diversification and stimulate future economic
growth, with the banks and stock markets being pivotal
in sharpening savings and channeling resources towards
At the CII meeting with Abu Dhabi Chamber of Commerce & Industry in New Delhi
focus
At the Abu Dhabi Investment Forum in New Delhi (left) and Mumbai

focus
investments and
d e v e l o p m e n t
projects.
Mr Sanjeev Gupta,
M D , N E X G E N
Financial Services
Ltd moderated the
session in New
Delhi, as did Mr
Shankar Jadhav,
Head - Strategy, BSE Ltd, in Mumbai.
Interactive Sessions with ZonesCorp
As a precursor to the Prime Minister of India’s visit
to UAE as the Chief Guest for the World Government
Summit, CII organized interactive sessions with
UAE’s Higher Corporation for Specialized Economic
Zones (ZonesCorp) in Chandigarh and Gurugram on
7 February.
The sessions described investment opportunities in
the Emirates, especially in ZonesCorp, highlighting the
strategic location of Abu Dhabi, tax free income, import
duty exemptions, and free trade agreements with 21
countries, which lead to lower operating costs.
ZonesCorp, the largest operator of purpose-built industrial
zones in the UAE, hosts a number of complementary
industries which include steel, metals, construction,
auto, logistics, oil gas services, to name a few, in
world-class infrastructure. The Abu Dhabi Industrial City
houses over 650 investors, with more than 80 from
India. Going forward, ZonesCorp plans to develop a
maritime cluster, as also a logistics park.
Interactive Sessions with ZonesCorp (UAE) in Gurugram (left), and in Chandigarh

cover story
india and the world
Charting New India’s
Global Integration Strategy
T
he present time is seeing the global commons
being reshaped, with several transnational
trends impacting the business environment.The
response to these developments necessitates
a robust partnership of governments, industry, civil
society and the people at large, within nations as well
as among nations.
In this context, the CII Partnership Summit, in its 24th
edition this year, offered a strong and established
platform to discuss the evolving trajectory of these
trends and the modalities for working together for the
best possible outcomes for growth and development.
Held in association with the Department of Industrial
Policy and Promotion (DIPP), Ministry of Commerce
and Industry, and the Government of Andhra Pradesh,
the 2018 Summit had the participation of some 2,500
delegates including around 500 from 40 countries.
The deliberations centered around emerging global
trends. First, developing economies such as India,
Vietnam, Bangladesh, and others are taking up the

reins of growth. The populations of these countries are
moving up the human development chains, adding a
whole new level of productivity to their economies.
Two, technology advance has gathered momentum and
the Fourth Industrial Revolution is increasingly evident
on global shopfloors. The new model of servicification
of manufacturing is blurring the lines between sectors,
and contributing immensely to productivity.
Three, global value chains are rapidly shifting and
shortening, as new production centers emerge.
Four, globalization is encountering diverse voices, both
in favor and in opposition. Some leading economies are
increasingly turning inwards to seek their own solutions
for the challenges they are facing.
Where does India stand within this changing environment
for global growth? Analysts widely acknowledge India’s
high potential for growth and transformation. The IMF
expects India to reprise a growth rate of 8% within
two years, taking the country to a $4 trillion economy
by 2022. The Indian Government is looking towards
achieving a nominal GDP of $5 trillion by 2025.
The impressive reforms agenda of the Government creates
a huge positive environment for India’s growth.The Goods
and ServicesTax (GST), a landmark reset of India’s indirect
tax regime, is already delivering key outcomes of making
India a single market, lowering logistics costs, expanding
the tax base, and raising revenues for growth.
On ‘Ease of Doing Business,’ the DIPP, working
with the State Governments, has made remarkable
progress in simplification, digitization and fast-
tracking of processes. With policies on FDI, skill
development, MSME credit, and so on, a new
culture of entrepreneurship is taking shape in the
country.
Going forward, the country envisages transformation in
the paradigm of a 'New India.' India is capable of taking
a lead role in the emerging regime of Industry 4.0,
given its strong services sector, software proficiencies,
and creative talent. Already, many large firms have
established design and R&D centers in the country in
the spirit of servicification.
The Government is creating a facilitative ecosystem
for new industries at the forefront of the knowledge
economy such as e-vehicles, UAVs, genomics, and
robotics, among others.
India’s 60 million small enterprises are emerging as a
strong force, as today’s young Indians are aspiring to
become job-creators rather than job-seekers. Linking
these dynamic enterprises to global value chains through
better infrastructure and connectivity can facilitate a
new wave of growth.
Today, India needs to forge new channels of growth,
such as skill development and reskilling for the future,
enhancing technology use, developing access to credit,
M Venkaiah Naidu, Vice President of India with (L-R) Chandrajit Banerjee, Director General, CII; Shobana Kamineni, President, CII, and
Executive Vice Chairperson Apollo Hospitals Pvt Ltd; Pusapati Ashok Gajapathi Raju, then Minister of Civil Aviation; N Chandrababu Naidu,
Chief Minister of Andhra Pradesh; Suresh Prabhu, Minister of Commerce and Industry; Ramesh Abhishek, Secretary, DIPP,
and Gautam Adani, Chairman, Adani Group, at the inauguration of the Partnership Summit 2018, in Visakhapatnam
cover story

and building the right infrastructure.
Facilitating the right investments at the
right time and building the strengths
of its entrepreneurs in an open and
welcoming environment is critical to
development.
CII has been working on these issues in
close partnership with both the Central
and the State Governments. Its agenda is
based on evolving a facilitative investment
climate, building competitiveness,
creating business opportunities, and
strengthening international linkages.
Social development, sustainability and
empowerment are also part of our core
activities.
It is in this spirit that the Partnership
Summit was aimed at reinforcing global
partnerships for growth. Held in the
State of Andhra Pradesh for the third
consecutive year, it recognized the role
of State Governments in India’s overall
development and provided a platform for
attracting investments in its aspirational
plans.
Our cover story describes how the
Partnership Summit presented better
understanding of India’s reform process
and its future shape as the world’s third
largest economy.
T
aking the cue from the current economic landscape of an
emerging ‘New India’ that may soon change the direction of
trade winds of the global economy, CII, in association with
the Department of Industrial Policy & Promotion (DIPP), Ministry of
Commerce and Industry, and the State Government of Andhra Pradesh,
organized the 24th
edition of the Partnership Summit 2018 from 24-26
February, in Visakhapatnam.
Over 2500 delegates from 40 countries converged for a close
examination of the partnerships and synergies to spark the next
phase of global growth, and develop strong multi-country linkages and
networks to assist the transformation of the global economy.
The Summit was initiated in 1995 to commemorate CII’s centenary
year. With over two decades of active engagement and collaboration
of India at a global level, the Summit attracts thousands of delegates
every year with over 40% of the participation from overseas.
The theme for this year’s Summit was ‘Charting New India’s Global
Integration Strategy.’ Over the years, a global economic rebalancing
has taken place, with a definitive shift towards Asia and the emerging
economies. Today, the G20 nations together represent 85% of the global
output. In an environment where the developed world clocked a low growth
rate of 2.5%, China and India remain centers of dynamic growth.
The Summit saw an interactive ‘New India’ in active engagement and
cover story

cover story
collaboration within the country and with the rest of
the world, with inspiring and stimulating discussions
among the key stakeholders–policy-makers, institutions,
businesses, media and academia, keeping the alignment
of national goals with overall global targets.
Though a rhetoric against globalization was built up in
2016, the inter-dependence of advanced and emerging
economies remains undeniable. The global landscape
is facing new economic, technological, environmental
and social challenges, which are transnational, and thus
require collective solutions and global collaborations.
Inaugurating the Summit, Mr M Venkaiah Naidu, Vice-
President of India, said there is a reforms mood in the
country, at all levels of Government: Center, State and
local. Vital structural reforms like the implementation of
demonetization, and the Goods and Services Tax (GST),
have led to an expansion of the formal economy and
brought in increased tax compliance. The number of
people who filed income tax returns swelled from 6.47
crore in 2014-15 to 8.27 crore the following year, while
both deficits, current account and fiscal, have declined,
he said. India has emerged as one of the growing
large economies in the world, and the global outlook
is also looking brighter, said Mr Naidu. Infrastructure
development too is in an expansion mode, and there
is all-round growth in various sectors, he added.
The Andhra Pradesh Government aims to make the
State one of the top 3 investment destinations in the
country by 2022, the top investment destination with
the highest per capita income by 2029, and a premier
global investment destination by 2050, stated Mr N
Chandrababu Naidu, Chief Minister of Andhra Pradesh.
With sustained double digit State GDP growth in the last
three years, the State will see `10 lakh crores of fresh
investments, and 20 lakh new jobs created, he said.
Mr Suresh Prabhu, Minister of Commerce and Industry,
said Andhra Pradesh has overcome stiff challenges
to become one of the fastest-growing States in the
country. The Center, he said, is working closely with
the State Government to develop Andhra Pradesh as a
major automobile manufacturing hub. Moreover, with the
renewed focus on promoting labor-intensive manufacturing
sectors, Andhra Pradesh will see accelerated development
of sectors like gems and jewelry, agro exports, leather
and footwear, and medical equipment.
The high level of participation in the Partnership Summit
demonstrates the abundance of emerging business
opportunities, said Mr Ramesh Abhishek, Secretary,
DIPP. The Innovation Centers that have come up in
Andhra Pradesh, he said, would draw the attention of
a gamut of multinational companies.
The Adani Group will develop the Bhavanapadu port
project in the State, said Mr Gautam Adani, Chairman,
Adani Group.
Vice Chairperson Apollo Hospitals Pvt Ltd, said India
has a key role in the unravelling of Industry 4.0. With
the country set to become a $5 trillion economy by
year 2025, it is vital to align the MSME sector with
global value chains, she said. Andhra Pradesh, she felt,
has the core strengths to emerge as a premier hub for
knowledge-based industries.
Earlier, Mr Chandrajit Banerjee, Director General, CII, in
his opening remarks, said the Summit, being organized
in Visakhapatnam for the third successive year, has been
designed to provide a deep understanding of the reforms
process underway in the country, as also the role of the
States in realizing the aspirations of the people.
An MoU was exchanged between the Automotive
Manufacturers Association of India (ACMA), the Society
of Indian Automobile Manufacturers (SIAM) and the
Andhra Pradesh Economic Development Board, to
develop the automotive industry in the State.
The session also hosted the foundation stone-laying
ceremony for the Lulu International Convention Center,
Hotel and Mall, to be established at the very place
where the Summit was being held.
Dignitaries at the Partnership Summit

cover story
The Reform Calculus: Promoting
Ease of doing Business
To become a prosperous, high-income country in the
next two decades, India will have to achieve a sustained
economic growth rate of 8% or more each year. This
calls for key reforms, including improving the ease of
doing business. While India has done well to break
into the top 100 in the World Bank’s Ease of Doing
Business Indicators, and is expected to climb higher in
the rankings in the coming years, much more needs to
be done to break into the top 50 in the rankings.
The session explored
• Measures needed to make India an easier place to
do business
• How to incentivize the States to undertake these
reforms
• Steps to strengthen the private sector and the
market mechanism in the country
• Ensuring that reforms benefit the population at the
base of the pyramid.
India should now move from ‘ease of doing business'
to ‘pleased to do business,’ said Mr Suresh Prabhu,
stressing the need to nurture the entrepreneurial
ecosystem in the country.
The panelists conclusively agreed that important reforms
happening in States like Andhra Pradesh must be
replicated all over the country.
World Trade on the Comeback Trail
World trade seems to be on the road to recovery. The
World Trade Organization’s (WTO) latest World Trade
Outlook Indicator suggests that the trade recovery of
2017 would continue in 2018, even though optimism
on the trade agreements front has been dampened by
events like Brexit, the US pulling out of TPP, and the
recent failure of the 11th
WTO Ministerial Conference in
Buenos Aires in December. Protectionist voices too, are
gaining strength, particularly in major developed nations.
In such a situation, is trade growth sustainable?
The transformation of the WTO will pave the way for the
transformation of the world economy and, in turn, national
economies, stated Mr Suresh Prabhu. India, he said, is
hosting a WTO mini-ministerial in the coming month,
with the endeavor to build a common approach among
the members instead of creating any grouping.
Can India Lead Industry 4.0?
The 21st
century’s digital revolution has unleashed a
new wave of advanced machines, further automating
complex tasks and jeopardizing skilled workers. On the
positive side, adaptation of artificial intelligence (AI) and
automation can lead to improved products and better
processes. How can India meet the challenge posed
by Industry 4.0, preserve its edge in manufacturing,
and create a sustainable ecosystem which supports
this transition? This session explored how India needs
to design its Make in India 2.0 strategy to meet this
challenge.
Key Sessions
Prof Soumitra Dutta, Professor of Operations, Technology & IT, Cornell SC Johnson College of Business, USA; Sameer Garde, President-India
& SAARC, Cisco Systems Inc; Myron Brilliant, Executive Vice President & Head of International Affairs, USIBC, US Chamber of Commerce;
Shobana Kamineni; U Aung Htoo, Deputy Minister of Commerce, Myanmar; Suresh Prabhu; and N Chandrababu Naidu,
at the session on ‘Promoting Ease of Doing Business’
Rakiya Eddarhem, Secretary of State, Ministry of Industry,
Investment, Trade & Digital Economy, Morocco; U Aung Htoo;
Sanjay Budhia, Chairman, CII National Committee on EXIM, and
MD, Patton International Ltd; and Jose Luis Kaiser, Director
General, International Trade & Investments, Ministry of Economy,
Industry & Competitiveness, Spain, at the session on World Trade

cover story
Stating that happiness is now a ‘measurable index for
governance,’ Mr Nara Lokesh, Minister of IT, Panchayati
Raj and Rural Development, Andhra Pradesh, said his
Government’s goal was to make the State ‘number
one in happiness.’ From using drones to map and
geo-tag the quality of roads in remote areas to water
management, we are using emerging technologies
to the hilt, he said, pointing out that in spite of two
consecutive years of drought in the State, when the
water deficit was at 24%, agricultural growth was
at over 20%, thanks to the use of the latest water
management technologies. Andhra Pradesh aims to
become a one-stop platform for ideas and innovations
from India and abroad, he added.
The Matrix of Skills: Leveraging India’s
Workforce
The National Skill Development Mission was set up to
fulfil the growing need in India for skilled manpower
across sectors. This session discussed innovative
strategies to bridge the gap between the demand and
supply of skills to address global goals of decent work
and economic growth.
An estimated 65% of the country’s population will be
of working age by year 2026. While most parts of the
globe would face skilled manpower shortage, India will
have a surplus skilled workforce in the coming years, said
Mr Ramesh Kymal, Chairman, CII National Committee
on Wind and Bio-Energy, and CMD, Siemens Gamesa
Renewable Power Pvt Ltd.
Redefining the Global Value Chain:
The Challenges of Integrating SMEs
Like other countries
across the world,
India too is targeting
manufacturing-led
economic growth
as a development
strategy, due to
its ability to create
large-scale jobs and
promote inclusive
growth. As Indian
manufacturers are
devising strategies to
be part of the global production networks, and expand
their reach in international markets, this session explored
how Indian MSMEs can become part of global value
chains.
The Indian Government will fully back the Indian SME
sector in linking with global value chains, to help them
thrive in an ecosystem of huge technological disruptions,
Pranjal Sharma, Author of Kranti Nation: India and the 4th
Industrial Revolution; Akhil Bansal, Deputy CEO, KPMG India; Ian McCarthy,
Director, International Business Festival, Liverpool, UK; Ayuna Badmaeva, Deputy CEO & GM – International Business, Digital Television,
A VGTRK and Rostelecom Company, Russia; Nara Lokesh, Minister of IT, Panchayati Raj, and Rural Development, Andhra Pradesh;
Rakiya Eddarhem, and Marwan Shakarchi, Chairman, MKS Pamp Group, Switzerland, at the session on Industry 4.0
K Sambasiva Rao, MD & CEO, Andhra Pradesh State Skill Development Corporation (APSSDC); Srini Srinivasan, MD, Hospira Healthcare
(Pfizer); Sandip Sen, Chairman, CII National Committee on Special Abilities, and Global CEO, Aegis Customer Support Services Pvt Ltd;
Vish Govindasamy, Deputy Vice Chairman, Ceylon Chamber of Commerce, President, Indo Lanka Chamber of Commerce & Industry, and
Group MD, Sunshine Holdings PLC, Sri Lanka; K Ravindra, Minister of Sports & Youth Affairs, Andhra Pradesh; Ramesh Kymal, Chairman,
CII National Committee on Wind & Bio-Energy, and CMD, Siemens Gamesa Renewable Power Pvt Ltd; S S Rawat, Secretary, Industries,
Andhra Pradesh, and Meena Raghunathan, Member - Advisory Committee, APSSDC, and MD, GMR Varalakshmi Foundation,
at the session on Skill Development
Dammu Ravi, Joint Secretary,
Commerce, Ministry of Commerce and
Industry; Sanjay Budhia, and
Rachid Fergati, MD, UPS Indian
Subcontinent, at the session on
Integrating SMEs in Global Value Chains

cover story
said Mr Dammu Ravi,
J o i n t S e c r e t a r y ,
Commerce, Ministry of
Commerce and Industry.
New technologies like
artificial intelligence,
machine learning and
industrial automation
are hugely disruptive for
Indian SMEs, but are
a live reality. “Instead
of fighting the change,
Indian SMEs need to gear
up to face the challenge,
be engaged and take measures to move up the global
value chain,” he said.
Connectivity and Communication
Constraints of finance and resultant delays in
infrastructure development are a consistent problem
in India. India has been planning infrastructure projects
in several parts of Asia, but financing constraints are
a major issue in building cross-border connectivity
projects, too.
The efficacy of technology lies in its people-orientation,
said Mr Pusapati Ashok Gajapathi Raju, then Minister of
Civil Aviation, pointing out that the civil aviation industry
itself is all about connecting people. Policy-making
should be very clearly guided by the central purpose
for which it being done, he said, noting that now that
drones are being widely used, there is a clarion call for
a policy on their use.
Mr N Sivasailam, Special Secretary,Telecommunications,
Ministry of Communications, said ‘Make in India 2.0’
will support ‘Industry 4.0’. In the telecom sector, India
is keeping pace with the world for ushering in the 5G
telecom ecosystem, and is also a part of the standard
setting mechanism for 5G telecom, he added.
The Universe of Start-ups
In recent years, the Indian start-up ecosystem has
taken off and has matured. Driven by factors such
as availability of funding, consolidation activities, the
evolving technology space and a burgeoning demand,
the culture of entrepreneurship is thriving across the
country.
“Money is not the sole ingredient for start-ups to thrive
in India," said Mr Nara Lokesh, explaining how Andhra
Pradesh has invested in a 'cohort’ model, wherein start-
up entrepreneurs are provided with mentorship, access
to market, and access to finance, to enable them to tailor
innovative solutions for the real problems faced by the
citizens. India has scale on its side and is also a value-
seeking market: therefore any solution that is incubated
in India has a relevance and application in the rest of the
world, he said. Andhra Pradesh has also established a $100
million fund for start-ups in the State, he added.
Mr S Gopalakrishnan, Past President, CII, Chairman, CII
Start-up Council, Co-founder, Infosys Ltd, and Chairman,
Axilor Ventures, who moderated the session, said start-
ups are a crucial element for the creation of jobs. An
environment that encourages entrepreneurship has to
Sabyasachi Mitra, Deputy Country Director, Asian Development Bank; Julian Michael Bevis, Sr Director, Group Relations South Asia,
Maersk Group; Romesh David, CEO, South Asia Gateways Terminals (Pvt) Ltd, Sri Lanka; N Sivasailam, Special Secretary, Telecommunications,
Ministry of Communications; Pusapati Ashok Gajapathi Raju; Shiv Kumar Gunturu, Co-Chairman, Task Force on MSME and International Linkages,
CII Southern Region, and CEO, Maple Software Pvt. Ltd; Baroness Sandip Verma, Member of the House of Lords, UK; Rizwan Soomar, CEO
and MD -Indian Subcontinent, D P World, UAE; Olga Kulikova, Ambassador of Business Russia to India, and Geoffrey Clements, Chairman,
Commonwealth Infrastructure Partners, UK, at the session on Connectivity and Communication
Deepanshu Manchanda, Co-Founder, Zappfresh; Ben Hamilton, Co-Founder, Village Energy, Australia;
Ankur Jain, Managing Partner, Emergent Ventures, USA; Nara Lokesh; S Gopalakrishnan, Past President,
CII, Chairman, CII Start-up Council, Co-Founder, Infosys Ltd, and Chairman, Axilor Ventures; Amit Narayan,
Founder & CEO, AutoGrid Inc. USA; Marjolein Helder, Founder & CEO, Plant-e, Netherlands; and R Ramanan,
Additional Secretary, NITI Aayog, and Mission Director, ATAL Innovation Mission, at the session on Start-ups

cover story
be created and fostered to draw out new employment
and innovative solutions, he said.
Valedictory Session
Andhra Pradesh is a logical investment destination
for futuristic industries, said Mr Suresh Prabhu at the
Valedictory Session, echoing Mr N Chandrababu Naidu’s
assertion that ‘the future is here.’
Underlining the success of the Summit, Mr Naidu
shared his ambitious visions for his State, such as
making Amaravati a model city and among the top 5
in the world, setting up an automobile manufacturing
hub in Anantapur, a fintech center in Visakhapatnam,
and an electronics hardware cluster in Tirupati, as well
as the plan for a Korean city in the State.
Mr E S L Narasimhan, Governor of Andhra Pradesh
and Telangana, felt that people’s happiness should be
paramount in any growth and development endeavors. As
Andhra Pradesh keeps up its growth momentum, poverty
should be completely eliminated in
the State, he said.
Singapore is deeply committed to its
partnership with the Government of
Andhra Pradesh, said Mr S Eswaran,
Minister for Trade & Industry,
Singapore. A Singapore consortium
is developing a visitor center in the
upcoming city of Amaravati to give a
glimpse of how the city is developing,
and Singapore is also working with
Japan to develop urban solutions for
the city and the State, he added.
Mr Paramasivum Pillay Vyapoory,
Vice President of Mauritius, said his
Government is seeking the support of
Andhra Pradesh for setting up aTelugu
Cultural Center in Mauritius. There
are strong economic and business
complementarities between the two regions, he said,
noting that while Andhra Pradesh is ranked no.1 in Ease
of Doing Business in India, Mauritius is ranked no.1 in
Ease of Doing Business in Africa. Mauritius could also
serve as a bridgehead to the Africa markets for Indian
investors, he added.
Mr Chandrajit Banerjee shared four key CII
initiatives planned for the State: a CII University
of Entrepreneurship, a National Start-up Centre of
Excellence, and an international convention centre,
all in Amaravati, and the establishment of a fintech
hub in the State.
During the session, MoUs were exchanged between
• CII and the Singapore Business Federation (SBF)
• CII and Business Russia
• Atal Innovation Mission - NITI Ayog and the Andhra
Pradesh Innovation Society
• Andhra Pradesh Food Processing Society and Indus
Coffee Pvt Ltd.
Chandrajit Banerjee; S Eswaran, Minister for Trade & Industry, Singapore; Suresh Prabhu, E S L Narasimhan, Governor of Andhra Pradesh and
Telangana; Paramasivum Pillay Vyapoory, Vice President of Mauritius; N Chandrababu Naidu; Pusapati Ashok Gajapathi Raju, and
Solomon Arokia Raj, Secretary, Industries & Commerce, Andhra Pradesh, at the Valedictory Session
US Participation at Partnership Summit
CII hosted Mr Myron Brilliant,
Executive Vice President and
Head of International Affairs at
the US Chamber of Commerce,
and Dr Mukesh Aghi, President,
US-India Strategic Partnership
Forum, as featured speakers at
the 2018 Partnership Summit in
Visakhapatnam.
Dr Aghi participated as a panelist
on the ‘Sunrise Andhra Pradesh'
platform, to encourage investment
and discuss opportunities of
engagement in the State.
Mr Brilliant participated in the plenary session, ‘The Reform Calculus:
Continuous Change for India.’
Myron Brilliant with Suresh Prabhu and
N Chandrababu Naidu

South Asia Gas Enterprise
(Siddho Mal Group)
A-6, Connaught Place, New Delhi-110001
Ph: +91-11-23324245 / 43581237
E-mail:
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siddhomalage@vsnl.net
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cost of gas liquefaction/transportation/re-gasification ( 5-6 USD / mmbtu).
In India’s quest for Energy Security, through a New Route, , a Global Consortium, is
developing a $4.5 Billion world's deepest Common Carrier Natural Gas Pipeline, directly from
IrantoGujaratcoastinIndia,throughtheArabianSea.
( A route via Oman is also being explored in order to meet Oman’s needs for Iranian gas
through this pipeline).
SAGE
Fuelling India's 'Make in India' plans and Gas based Economy vision by this path-breaking
infrastructureProject,forhighereconomicgrowth.
Meeting needs of Power/Fertilizer Industry for affordably priced gas, while moving to a low
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quantity LNG import.
Gas Qty: 31.1 mmscmd under a 20/25 years Long-Term Gas Supply Contract with Iran.
Pipeline tariff: USD 2.5 per mmbtu range.
DNV-GL, Norway / Engineers India Ltd. (EIL) / SBI Capital Markets Ltd. confirmed Project
Feasibility.

ECONOMY
M
o r e t r u s t
n e e d s t o
b e b u i l t
between industr y,
academia and the
government in order
to build a strong India
Inc, stated Dr Rajiv
Kumar, Vice Chairman,
NITI Aayog. Dr Rajiv
Kumar, who was the
chief guest at a panel discussion on the Post-Budget
Economic Scenario, organized by CII, jointly with the
Institute of Economic Growth (IEG), on 14 February in
New Delhi, noted that the Union Budget’s focus on
agriculture, health, employment and MSMEs would
provide an impetus to inclusive growth.
Elaborating on the ‘National Health Protection Scheme’
announced by the Government, he said the NITI Aayog
is in the process of creating a blueprint for the roll-out
of this ambitious health mission.
Commending the Government on its efforts to improve
the job and employment scenario by extending
fixed term employment to all sectors, he also called
upon industry to create new jobs and focus on
apprenticeships. He also described two new indicators
of employment, using household surveys and payroll
information, which the Government is considering for
policy formulations.
In his keynote address, Dr Kumar also touched upon
the efforts of the Government to improve the livelihood
of the rural and agricultural populace through initiatives
like increasing the MSP and schemes such as PMAY,
Exploring the Post-Budget
Economic Scenario
PMGSY etc, as well as its efforts to revive private
investments and promote the (employment-intensive)
MSME sector through various measures and incentives.
He welcomed the Government’s forward-looking
approach on infrastructure financing, which has lowered
the budgetary support to the sector while increasing
the off-budget resources (capital to be raised from the
markets).
Dr Kumar’s address was followed by a panel discussion
on different aspects of the Budget and their impact on
the economy. Participants in the discussion included
Dr T C A Anant, former Chief Statistician of India,
and professor at the Delhi School of Economics, Dr P
K Joshi, Director IFPRI - South Asia Office, Dr Rajat
Kathuria, Director, ICRIER, Dr Indrani Gupta, Institute of
Economic Growth, and Dr Shubnum Singh, Advisor, Max
Healthcare. The session was moderated by Dr Manoj
Panda, Director, Institute of Economic Growth.
Sessions on the Union Budget
CII organized Budget Viewing Sessions in different
locations across the country. Post the Budget, several
Dr TCA Anant, Professor, Delhi School of Economics and Former Chief Statistician of India; Dr Shubnum Singh, Advisor, Max Healthcare;
Dr Rajat Kathuria, Director, ICRIER; Dr Manoj Panda; Dr P K Joshi, Director, IFPRI - South Asia Office, and Dr Indrani Gupta, Professor, IEG
Dr Manoj Panda, Director, IEG; Dr Rajiv Kumar, Vice Chairman, NITI Aayog, and
Arun Bharat Ram, Past President, CII, and Chairman, SRF Ltd,
at a discussion on the Post-Budget Economic Scenario, in New Delhi

ECONOMY
CII members at the Session on Union Budget 2018-19
in Chennai
Kiran Mazumdar-Shaw, CMD, Biocon Ltd; S Gopalakrishnan,
Past President, CII, and Co-Founder, Infosys Ltd & Chairman, Axilor
Ventures; Vikram Kirloskar, Chairman, CII Southern Region, and
Vice Chairman, Toyota Kirloskar Motor Pvt Ltd, and Kamal Bali,
Chairman, CII Karnataka, and President & MD,Volvo Group India Pvt
Ltd, at the session on the Union Budget in Bengaluru
seminars analyzing the Budget were also organized
in the regions, to obtain an analytical and interactive
framework on the impact of this Budget on the Indian
economy.
At the seminar on ‘Union Budget 2018-19: An Analysis’
organized by CII, in association with PwC on 2 February
in Kolkata, industry members and tax experts shared
their views on the Budget proposals and how they will
impact the economy and businesses.
Mr Bishwanath Jha, Chief Commissioner, Income Tax,
Kolkata, said India would collect `10 lakh crores by way
of direct tax this fiscal.
From economic indicators to direct and indirect tax
proposals – a wide range of topics were discussed with
a focus on oil and gas, tea, banking and finance, GST,
post-implementation difficulties, etc, at the Post-Budget
Analysis organized by CII Assam in association with
BDO India LLP on 15 February, in Guwahati.
Mr Bidyananda Barkakoty, Adviser, North East Tea
Association, and Mr Dinesh Bihani, Secretary, Guwahati
Tea Auction Buyers Association, shared their views on
Bishwanath Jha, Chief Commissioner, Income Tax Kolkata;
Avijit Mukerji, Vice Chairman, CII West Bengal, and Regional
Managing Partner, PwC (East); Kaushik Mukerjee, Partner, PwC,
and Aloke Mookherjea, Chairman, Howden Solyvent India Pvt Ltd,
at the Budget Analysis session in Kolkata
Members and delegates at the Post Budget Analysis Session in Guwahati
how the Budget proposals would impact the tea industry,
while Ms Jumani Saikia Nath, Chief Manager – Finance,
Numaligarh Refinery Ltd, examined the impact on the
oil and gas sector.
Live viewing and Post Budget sessions were held across
the Western Region on 1-2 February, in Ahmedabad,
Bhopal, Indore, Mumbai, Panaji, Pune and Vadodara. The
Post-Budget sessions featured detailed presentations
and deliberations by experts on the implications of the
various announcements pertaining to direct and indirect
taxes on the industry.

T
he Micro, Small & Medium Enterprises (MSME)
sector is an important piece of India’s legacy
economic model and forms part of the critical
supply chain for products and services. The sector is a
job creator and plays a crucial role in providing large-scale
employment and industrialization of rural and backward
areas. According to the National Sample Survey (NSS)
73rd
round, for the period 2015-16, there were 633.8
lakh unincorporated non-agriculture enterprises in the
country, engaged in different economic activities,
providing employment to 11.10 crore workers. The need
of the hour is to create an enabling environment for
them to invest and grow, creating jobs and pushing the
demand and growth.
Various announcements made by the Government
recently in terms of budgetary allocations and
appropriate policies for the MSME sector have hit the
target, with several solid reforms initiated to boost
the growth and prosperity of small enterprises in the
coming years.
The first big step is the reduction of the corporate tax
rate to 25% for companies with an annual turnover
up to `250 crores, from `50 crores. This would leave
more investable resources with 99% of the 7 lakh firms
which file tax returns. This would enable them to not
only reinvest and expand, but also help them to spend
more on research and development, which is crucial for
their competitiveness.
Corresponding to the announcement of lowering the
corporate tax, the Government has also changed the
criteria to define MSMEs from investment in ‘plant
and machinery/equipment’ to ‘annual turnover.’ As
per the new classification, a micro enterprise will be
defined as a unit with annual turnover less than or
MSME: A Sector in Transition
The need of the hour is to create an enabling environment for
MSMEs to invest and grow, create more jobs, and push up
demand and growth, says Shreekant Somany
equal to `5 crores, a small enterprise with annual
turnover more than `5 crores and less than `75
crores, and medium enterprises with annual turnover
of more than `75 crores and less than `250 crores.
This was a long-standing recommendation of CII,
and it is expected that the revised ‘turnover’ norms
will bring scale, skill, sophistication and speed to the
sector. The classification will align MSMEs with the
GST regime, while also supporting the ‘ease of doing
business’ in the sector, improve competitiveness, and
support the integration of Indian MSMEs into global
value chains (GVCs).
Further, MUDRA, demonetization, and the Goods
and Services Tax (GST) have rapidly started the
process of formalization. Since its launch in April
2015, the MUDRA Yojana has led to a sanction of
`4.6 lakh crores of credit to 10.38 lakh beneficiaries.
It is also a great initiative for financial inclusion and
equitable development, as 76% of the loan accounts
are of women, and more than 50% belong to the
Scheduled Caste, Scheduled Tribe and OBC groups.
Hence, the budget is appropriate in its focus to
accelerate formalization by further expanding the
reach of MUDRA, with the allocation of `3 lakh
crores, a nearly 20% rise from last year’s allocation
of `2.44 lakh crores. The Finance Minister, in his
budget speech, spoke about introducing ‘fixed term
employment’ in all sectors, which will further support
MSMEs to enhance their human resources and thus,
productivity.
High Non Performing Assets (NPAs) remain a pressing
issue for the country. MSMEs have been in the pincer
grip of the NPA crisis and the transition impacts of
demonetization. The Economic Survey 2017-18 revealed
ADVOCACY
msme

that the sector-wise NPAs of banks till March 2017
indicate that MSMEs had 11.8% (`658 billion) share
in total NPAs by public sector banks in the priority
sector. CII has been advocating to the Government
to increase the SMA-1 (Special Mention Account)
from 90 to 180 days to boost transition support to
MSMEs. To solve the issue of NPAs for MSMEs,
(which, according to Government estimates, are
saddled with `80,000-crore stressed loans), the
Government has relaxed the norms for non-
performing asset categorization from the current
90 days to 180 days. In addition, the Government
also proposes to revamp the system of online
sanctioning of loans to MSMEs, including the Online
Trade Receivable Discounting System (TreDs) to be
linked with GSTN, wherein all required information
will be available on the GSTN Portal. It will help
to grant loans quickly, reduce processing time and
late payments, and increase working capital and
investments, together with creating a financial
database.
It is important that our development efforts must
be complemented by technological innovations that
extend the reach of knowledge and learning to
the remotest corners of the country. Facilitating
the ease of doing business will help Indian
MSMEs take advantage of the emerging business
opportunities. The Government of India has
identified 372 basic business reforms to be taken
up by the States in action mode. By bringing ease
of doing business to MSMEs spread across the
geographical expanse of the country, India can
notch a much higher ranking in terms of ‘Ease of
doing business.’ Further, many global companies
are increasingly looking to Indian MSMEs for
strategic partnerships of mutual benefit, due
to the innovative capabilities of the latter, their
ability to speedily absorb new technologies, and
the availability of local skills.
MSMEs constitute the backbone of the economy.The
clear continuation on the roadmap for transforming
MSMEs into more competitive, efficient and globally
connected enterprises, with continued support and
handholding, with sustained focus, will go a long
way towards job creation, and adding to India’s
growth trajectory.
Shreekant Somany is Chairman, CII National MSME Council, and
Chairman & Managing Director, Somany Ceramics Ltd
ADVOCACY

ADVOCACY
Tackling Banking
Malpractices
C
II has called for a twin strategy for tackling financial frauds,
including better monitoring and supervision of banks, and
spread of best corporate governance standards.
“Government, regulators and industry must act fast to address
systemic risks in the financial sector. The three key solutions
for the banking sector are better management and operational
efficiencies, use of technology such as blockchain and big data
analytics, and lowering Government shareholding in public
sector banks,” stated Ms Shobana Kamineni, President, CII,
and Executive Vice Chairperson, Apollo Hospitals Enterprise
Ltd, in a recent press statement. She expressed concern that
“financial malfeasance perpetrated by a collusion of unethical
business entities and corrupt officials should not lead to a
situation where funds to industry get choked.”
CII believes that technology advance could be a major
enabler for monitoring transactions that are subject to
financial fraud and risks. Some banks are already deploying
artificial intelligence, big data and blockchain technologies to
better regulate their operations. It is important to minimize
human interface in such transactions to lower the risk of
misdemeanors, feels CII.
The Government could consider the consolidation of public
sector banks and develop a few strong banks adhering to
best standards in governance, accountability and transparency.
The regulator must institute supervision systems aligned with
the changing dimensions of banking and technology to deter
misconduct by individual players,” suggested Ms Kamineni.
Bringing down the Government stake in public sector banks
will help build expert management practices and greater
accountability. Currently, the shareholdings of the Government
have been rising with bank recapitalization attempts. These
should be brought down to 52% at the earliest as intended by
the Government. A roadmap could be announced for bringing
Government stake to 33% in 3-4 years, suggested CII.
Industry too needs to strengthen its internal systems, and
adhere in letter and spirit to regulatory norms. Strict business
processes, accountability, anti-bribery and anti-corruption
mechanisms and risk management are important areas, as
India is moving towards ‘ease of doing business’ involving
self-regulation and self-certifications. The actions of a few
fraudulent actors need not translate into more stringent
regulatory norms for all industry, when corporate governance
structures are strictly followed, emphasized CII.
Better corporate governance is an ongoing endeavor of CII,
which is working continuously with enterprises on internalizing
organization-wide management ethics and values.

I
ndia’s focus on indigenous manufacturing in
the defence sector, and encouraging the wider
participation of Indian industry, especially MSMEs,
to enhance the defence industrial base, is paying off,
with the Ministry of Defence unveiling several products
manufactured in India in recent years, from light combat
aircraft to portable telemedicine systems. Since 2015,
the Defence Acquisition Council has accorded ‘Approval
of Necessity’ (AON) for numerous projects under ‘Make
in India.’ These are now expected to fructify as contracts
for Indian industry, thus necessitating a higher level of
production domestically.
Defence and Aerospace Consultancy Services (DACS)
is a unique offering of CII to map the competence and
capability of Indian industry towards greater domestic
participation in defence manufacturing, and subsequent
integration in the supply chain.
CII DACS: The Need
Capable Indian companies do not participate in defence
production primarily due to lack of awareness about the
potential opportunities that exist in this sector. Also,
the procurement agencies (Ministry of Defence, the
Services and their lower formations, ordnance factories
and defence public sector undertakings (DPSUs))
though aware of the capabilities existing in the private
sector, rely largely on existing registered suppliers. It
is therefore necessary for capable industries to identify
the opportunities and go through the vendor registration
process in good time, before the release of tenders.
With over two decades of expertise in steering policy
initiatives, business forums and training programs in the
Defence and Aerospace sector, CII, through the DACS
service, is endeavoring to bridge the information gap
between Government and industry, and procurement
agencies and capable companies. This aligns with the
on-going policy transformation under the ‘Make in India’
initiatives of the Ministry of Defence to encourage
indigenous design, development and manufacturing
of components, parts, minor platforms, systems, and
sub-systems in the defence and aerospace sector, and
facilitate technology tie-ups, joint ventures and the
expansion of the country’s defence industrial base.
Enhancing MSME Participation
The Defence Expert Group has mapped the competence
and capabilities of over 25 Indian companies, helping
them to enter defence manufacturing and the supply
chain as potential suppliers for DPSUs and ordnance
factories.
Active since mid-2015, the CII DACS envisions to
enlarge the defence industrial base by guiding Indian
companies, especially MSMEs, to identify and leverage
their existing as well as latent core competencies to
manufacturing in defence.
With the Ministry of Defence mandating the DPSUs
and ordnance factories to increase their volume of
outsourcing from the Indian private sector up to 20% of
their turnover and expand their vendor base, significant
perpetual business opportunities are emerging for Indian
MSMEs as also large companies.
CII DACS Offerings
Capability Assessment
• A thorough mapping of the company’ design,
manufacturing, quality assurance and test facilities
• Preparation of assessment report
Advisory Services
• Identification of opportunities based on existing and
latent capability of the company
• Advisory for defence procurement procedures and
policies
• Recommended approach for entering the aerospace
and defence sector
Defence Supply Chain Integration
• Mapping and integration of company capabilities
with the defence supply chain
The new Defence Procurement Procedures in
Integrating MSMEs with the Defence Supply Chain
SectorScape

CII Communique March 2018

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CII Communique March 2018