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CII Communique December 2016


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Building Global Competitiveness in Indian Agriculture

Published in: Economy & Finance
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CII Communique December 2016

  1. 1. Edited, printed and published by Chandrajit Banerjee, Director General, CII, on behalf of Confederation of Indian Industry fromThe Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi-110003, Tel: 91-11-24629994-7, Fax: 91-11-24626149, Email:, Website: Printed at Lustra Print Process Pvt. Ltd., K No. 51/21, Rohad, Bahadurgarh (Haryana), PIN Code-124507 Registration No. 34541/79 JOURNAL OF THE CONFEDERATION OF INDIAN INDUSTRY We welcome your feedback and suggestions. Do write to us at ContentsVolume 38 No. 12 December 2016 COVER STORY 15 India-UK Tech Summit The 22nd edition of the technology summit, with the United Kingdom as the partner country, featured a series of summits on higher education, design, intellectual property, and innovation and entrepreneurship, as well as insightful technology and R&D sessions related to waste management, life sciences and smart cities. With the Prime Ministers of India and the UK speaking of ‘high quality’ and ‘high impact’ partnerships, our cover story looks at the drivers for Indo-UK cooperation in science and technology. SPOTLIGHT 03 Agro Tech 2016: Building Global Competitiveness in Indian Agriculture MINDSPACE 24 Media & Entertainment Sector in India INITIATIVE 30 Clean Air, Better Life FOCUS 37 Mining Opportunities BUILDING CAPACITY 40 Global Summit on Skill Development PLUS... SECTORSCAPE PORTFOLIO FOR EXCELLENCE ENGAGING WITH THE WORLD REGIONAL REVIEW ... AND MORE
  2. 2. Communiqué December 2016 | 3 SPOTLIGHT agriculture A griculture is a key pillar of the Indian economy, with more than 50% of the population directly depending upon the sector for livelihood. Indian agriculture has achieved many milestones–exiting from the phase of being dependent on food aid to achieving self-sufficiency in crop production and helping reduce poverty levels. Today, India is the third largest agriculture producer in terms of value, behind China and the United States. However, the potential of the sector is not yet fully leveraged. Issues like fragmented land holdings, inadequate input, delivery mechanisms and infrastructure, and innovation and technology gaps are limiting its growth. CII has been working closely with all stakeholders, including the Government and the farming community, to promote sustainable agriculture growth and development in the country. Agro Tech, the flagship event of CII in the agriculture space, was institutionalized in 1994 as an integrated event to cover all aspects of agriculture and allied sectors. CII Agro Tech 2016, the 12th edition of the event, with the theme ‘Building Global Competitiveness,’ held from 19-22 November in Chandigarh, carried forward the tradition of each edition being bigger and better than the previous ones. The Exhibition Spread over a gross area of 16,000 sqm, Agro Tech this year had 139 exhibitors – 92 domestic and 47 international, from 15 States of India and 13 countries. The participating States included Punjab, Haryana, Gujarat, Madhya Pradesh, Chhattisgarh, Chandigarh, Delhi, Himachal Pradesh, Jammu & Kashmir, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, and Uttarakhand. The countries participating included Canada, China, Denmark, Germany, Israel, Italy, Malaysia, South Africa, Spain, the Netherlands, Turkey, the United Kingdom, and USA. Building Global Competitiveness in Indian Agriculture Pranab Mukherjee, President of India, and Reuven Rivlin, President of Israel, inaugurating CII Agro Tech 2016 in Chandigarh, with (L-R) Rakesh Bharti Mittal, Vice President, CII, and Vice Chairman, Bharti Enterprises Ltd; Dr Abhay Firodia, Chairman, CII Agro Tech 2016, and Chairman, Force Motors Ltd, and Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall
  3. 3. 4 | December 2016 Communiqué SPOTLIGHT The Exhibition comprised 6 concurrent shows: • Farm Tech: Farm mechanization • Good Earth: Agri inputs and innovative farming techniques • Livestock Expo: Dairy, poultry, livestock, feed production and animal housing • Food Tech: Food technology, cold storage equipment and machinery • Implementex: Agri and farm implements • Irrigation & Water Management: Irrigation systems, farm water management, rain water harvesting Conferences and Sessions CII Agro Tech 2016 featured several conferences, as well as Country and State Sessions. Four specialized conferences, addressed by 69 experts and attended by more than 500 delegates, were held on • Digital Pathways in Indian Agriculture: Discussion on global best practices and scope in India • Make in India - Food Processing Sector • Food Safety • Making Indian Agriculture Sustainable Special country sessions were also organized: • India-Israel Roundtable on Precision Agriculture • Indo-Canada Partnership in Agriculture: Realizing the Untapped Potential • Empowering Women to Unlock Africa’s Agricultural Potential • Technical Workshop: Challenges and Solutions for Comprehensive Straw Management Farmer Interface Farmer delegations from Punjab, Haryana, Uttar Pradesh, and Himachal Pradesh, as well as farmers from many other States visited the fair. Kisan ghoshtis, vernacular and educative direct interactions between experts and farmers were held, where 44 experts addressed 6 learning sessions on: • Sustainable dairy farming through indigenous breeds • Organic farming for sustainable future, health and nutritional security • Profitable fish farming in North India • Commercial dairy farming - The way ahead • Use of solar and bio-energy in rural economy • Direct marketing of agri-produce Innovation and Youth Connect Growing disengagement of the youth and limited support for technology innovations for the agriculture sector are key challenges the country faces today. CII Agro Tech 2016 addressed both these challenges through the AdvancedTechnology and Innovation exhibition-cum-pitch and Agri Hackathon, engaging young entrepreneurs, innovators, and students, to explore a wide spectrum of technologies related to ICT solutions, sensors to ascertain soil moisture and temperature conditions for efficient irrigation, drones and biomimicry to improve human capacity in farming, virtual marketplaces and platforms for easing of trading in agriculture. Partners Partner Country: Israel Focus Countries: Canada and Germany Guest Country: Great Britain Partner Ministries: Ministry of Agriculture and Farmers Welfare; Ministry of Food Processing Industries; Agricultural and Processed Food Products Export Development Authority (APEDA), Ministry of Commerce and Industry Host States: Punjab and Haryana Partner States: Madhya Pradesh and Gujarat
  4. 4. Communiqué December 2016 | 5 For the first time in the history of Agro Tech, the event was inaugurated by two Heads of State. The CII Agro Tech 2016 exhibition was formally inaugurated by Mr Pranab Mukherjee, President of India, and Mr Reuven Rivlin, President of Israel, on 20 November in Chandigarh. Also present during the inaugural were Mr VP Singh Badnore, Governor, Punjab, and Administrator, Chandigarh UT, and Prof Kaptan Singh Solanki, Governor of Haryana. Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall Pvt Ltd; Mr Rakesh Bharti Mittal, Vice President, CII, and Vice-Chairman, Bharti Enterprises; Dr Abhay Firodia, Chairman, CII Agro Tech 2016, and Chairman, Force Motors Ltd; Ms Rumjhum Chatterjee, Chairperson, CII Northern Region, and Group MD, Feedback Infra Pvt Ltd; and Mr Chandrajit Banerjee, Director General, CII, among many others, also attended the inaugural. Mr VP Singh Badnore, Governor of Punjab, and Administrator, Chandigarh, was the Chief Guest, and Mr Om Parkash Dhankar, Minister of Agriculture, Haryana, was the Guest of Honor, at the valedictory session of Agro Tech on 22 November. • 16,000 sqm exhibition area • 139 exhibitors, including 47 international exhibitors from 13 countries • Business delegations from Canada, Israel, United Kingdom, Germany and Pakistan • Participation of diplomats from over 20 countries • 4 Country Sessions: Israel, Canada, Germany and Africa • CEOs Roundtable with 40 top-level business leaders on 'Doubling Farmers' Income by 2022' • 69 experts addressed 4 international conferences • 6 Kisan Ghoshti sessions addressed by 44 experts • 67 students from 24 universities participated in the CII Agri Hackathon • 8,900+ business enquiries generated • 152+ products launched/ displayed • 92% of exhibitors rated the exhibition as 'meaningful' • 95% of exhibitors interested in exhibiting at CII Agro Tech 2018 • 99% of visiting farmers interested in visiting CII Agro Tech 2018 SPOTLIGHT CII Agro Tech 2016 at a Glance Reuven Rivlin, President of Israel, addressing the inaugural session of CII Agro Tech 2016. Also seen (L-R): Chandrajit Banerjee, Director General, CII; Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall; Radha Mohan Singh, Minister of Agriculture; VP Singh Badnore, Governor, Punjab, and Administrator UT Chandigarh; Pranab Mukherjee, President of India; and Kaptan Singh Solanki, Governor of Haryana Om Parkash Dhankar, Minister of Agriculture, Haryana; VP Singh Badnore; Christopher Gibbins, Consul General of Canada, and Rumjhum Chatterjee, Chairperson, CII Northern Region, and Group MD, Feedback Infra Pvt Ltd, at the valedictory session of CII Agro Tech 2016
  5. 5. 6 | December 2016 Communiqué SPOTLIGHT Roundtable on 'Doubling Farmers’ Income by 2022' The Prime Minister of India has envisaged ‘Doubling of Farmers' Income by 2022,' with the vision of value-added, technologically- advanced agriculture sector as the prime engine of inclusive growth in the country, bridging income and development divides between rural and urban India. At a CEOs Roundtable at Agro Tech, 40 CEOs from the agriculture and food processing sector deliberated on the 7 themes identified for strategizing income enhancement of Indian farmers. The Roundtable was chaired by Mr Rakesh Bharti Mittal, Vice President, CII, and Vice-Chairman, Bharti Enterprises, along with Dr Abhay Firodia, Chairman, CII Agro Tech 2016, and Chairman, Force Motors Ltd and Ms Rumjhum Chatterjee, Chairperson, CII Northern Region, and Group MD, Feedback Infra Pvt Ltd. Detailed recommendations emerging from the Roundtable would be shared with the Government and relevant stakeholders. The key recommendations were: Warehousing, Logistics and Future Trade • Revisit the business models / PPP arrangements for setting up of warehouses / cold storage chains • Restructure Government warehousing infrastructure • Implement the Model APMC Act in all States • Disseminate relevant information to farmers on future trade Aggregation, Supply Chain and Logistics • Build consensus on the Model Land Leasing Act • Revamp existing regulations to revive the cooperative movement • Initiate a national policy for decentralized pack houses and warehouses • Establish quality specifications for farm produce R&D and Extension Services • Usher in perception change regarding GM crops • Initiatives for bio-conservation • Promote R&D in mechanization in a cost-effective manner • Focus on digitalization of the extension system Irrigation and Water Management • Promote micro irrigation aggressively to achieve input efficiency • Promote recycling of water for irrigation • Increase awareness on the efficient use of water • Simplify policies and procedures Agricultural Markets • Remove barriers to inter-State and intra-State trade • Set up electronic markets and promote the use of digital mode • Allow private markets to operate and also encourage them Farm Inputs and Mechanization • Policy interventions required for promoting the adoption of new technologies • Create policy frameworks for aggregating machinery through farmer producer companies/ organizations • Promote the use of precision agriculture and mechanization for small land holdings Credit and Insurance • Recognize farm leases - use digital format for easy bank borrowing • Develop non-banking finance companies and micro finance institutions to provide loans at farmers doorsteps • Ensure universal access to crop insurance Dr Abhay Firodia, Rakesh Bharti Mittal, and Rumjhum Chatterjee, at the CEOs Roundtable during Agro Tech 2016
  6. 6. 8 | December 2016 Communiqué SPOTLIGHT ‘Today India is among the fastest growing economies. There is much to learn from Israel, which uses technology to optimize its production and productivity. It is a country which has converted its disadvantages to advantages with courage, conviction and fortitude.’ Pranab Mukherjee, President of India ‘Partnership between Israeli companies and Indian farmers is creating magic for Indian agriculture. Together, Israel and India can ‘Make in India’ and ‘Make for India.’ We in Israel were concerned about homeland security, but India has taught us to think about food security. And this is why we are all here today.’ Reuven Rivlin, President of Israel ‘It is appreciable that CII is bringing digital krishi to the farmers. CII’s efforts corroborate the efforts of the Central Government to increase agricultural production and water conservation with schemes like Zila Sinchai Yojana, Soil Health Card, Rashtriya Gokul Mission and the introduction of neem-coated urea.’ Radha Mohan Singh, Minister of Agriculture, India ‘We need to boost partnerships that bring farmers, academia, R&D institutes and industry together to develop cost- effective technologies to take India’s agriculture sector to the next level of development.’ VP Singh Badnore, Governor, Punjab, and Administrator, Chandigarh ‘CII Agro Tech is an ideal platform for linking farmers with industry. All the stakeholders must work towards finding solutions for challenges impacting the agriculture sector, such as depleting water table, deteriorating soil health, climate change, etc. If farmers not only produce, but also process, pack and market their produce themselves, you can imagine the sort of returns they can get. How? Because we V O I C E S would eliminate all middle men! Big brands are doing this and are making huge profits. If they can, why can’t our farmers? There are numerous opportunities in this space and the returns are incredible.’ Om Parkash Dhankar, Minister of Agriculture, Haryana ‘CII Agro Tech is a great opportunity for Canada to showcase its products and innovation in agriculture and food processing. Ontario is participating in Agro Tech for the first time.’ Jeff Leal, Minister of Agriculture, Food and Rural Affairs, Province of Ontario, Canada 'By 2030, the demand for food would rise by 40% and by 2040 it may further increase by 60%. The Government is making sustained efforts to sustain natural resources and double the income of farmers. Productivity can be increased if farmers start diversifying.’ Dr Nirmaljeet Singh Kalsi, Addl Chief Secretary- Development & PWD (B&R), Punjab 'I am very impressed with CII Agro Tech, as my country is heavily dependent on agriculture.To take our agricultural sector forward we have a lot to learn from the Indian experience.’ Ibou Boye, Ambassador of Senegal ‘CII AgroTech 2016 is a great opportunity to explore agribusiness opportunities, particularly connecting with potential Indian investors in technology.’ Niankoro Yeah Samake, Ambassador of Mali ‘India has been assisting us in food production through equipment purchase along with training in advanced technologies.’ Lesego Ethel Motsumi, High Commissioner of Botswana
  7. 7. Communiqué December 2016 | 9 ‘The UK has high quality institutions and companies ready to provide the expertise and technology that India needs.’ David Lelliott, British Deputy High Commissioner, Chandigarh India is the fastest growing economy in the world. Productivity enhancement needs to be a national priority.’ Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall 'Instead of aiming merely at increasing the productivity of farmers, initiatives need to be taken to increase the income of the farmers. To ensure that the maximum number of farmers avail the benefits of digital technology, more emphasis should be given to the use of graphics and images, as is done in Japan.' Salil Singhal, Co-Chair, CII National Council on Agriculture, and CMD, PI Industries, India 'The best possible business models, advanced technologies exhibited at CII Agro Tech help in building global competitiveness of Indian agriculture.' Dr Abhay Firodia, Chairman, CII Agro Tech 2016, and Chairman, Force Motors ‘Till now, the country was more focused on removing poverty and building food security. Now, there is greater emphasis on natural resource management, climate-smart agriculture and renewable energy. Solar energy has great potential, which we need to tap.’ Gokul Patnaik, Chairman, CII Agro Tech 2016 Conferences, and Chairman, Global Agri System Pvt Ltd 'The future of farming will be very different with agri robots to plant seeds and harvest crops, smart tractors, and farmers checking the status of farms on the computer. However, right now the problem lies in the capital investment cost of these initiatives, which are very high and are not cost-effective for small farmers, who are technologically illiterate.' Dr Ioanna Roussaki, Assistant Professor, National Technical University, Athens, Greece ‘IT technologies like sensors, energy harvesting processing, etc are useful for agriculture. However, there is a lack of high quality and low cost sensors everywhere. This is where more innovation needs to happen.’ Dr Yosi Shacham, Professor, Centre for Nano Science & Nanotechnology, Tel Aviv University, Israel ‘Technologies like drip irrigation can help farmers in India, but are seldom used due to lack of knowledge. Remote sensing by satellites can be used to provide accurate information to farmers and give them irrigation prescriptions.’ Richard Klapholz, CEO, Rivulis Irrigation, Israel ‘Technology has to be developed keeping in view the needs of the consumers. In the next three decades precision farming is going to play a key role in increasing farm productivity.’ Rajesh Jejurikar, President and Chief Executive-Farm Equipment & Two Wheelers, Mahindra & Mahindra, India 'CII Agro Tech 2016 has seen a huge response from the international community.’ Chandrajit Banerjee, Director General, CII SPOTLIGHT
  8. 8. 10 | December 2016 Communiqué SPOTLIGHT Reshaping Indian Agriculture through Advanced Technologies T echnology has been a key driver of agricultural growth. Over time, the role of technology in the context of sustainable agricultural practices and higher income for farmers has gained more relevance. Interestingly, the scope of technology is moving from machinery, including tractors and heavy implements, to the Internet of Things, Un- manned Aerial Vehicles, and Artificial Intelligence, among others. Globally, precision farming that allows optimization of resource allocation and improved productivity per unit of land, labor and water is being widely adopted. Innovations in agriculture are aiding this process of transformation where a large part of the farming activities can be done in a time and resource efficient manner. Farmers benefit from higher productivity and control over the quality of the produce, and hence, better prices. The Indian agricultural landscape has also been witnessing the advent of new and advanced technologies such as drones, hi-tech sensors, and a host of mobile applications connecting buyers and sellers and providing important farm-related information to the farmers, among others. Most of the technologies aim at enabling the farmer to take smart decisions based on the information base, and also bring in precision farming to pre-determine the optimal usage of water and other agri inputs including seeds, fertilizers, etc. Considering the diversity of Indian agriculture in terms of soil, water and weather conditions, and the variety of crops that can be grown across seasons and geographies, there is tremendous opportunity for technology-led solutions. However, improved customization, interpretability, ease of adoption particularly for small farmers, and cost-effectiveness, will be critical for many of these to be successful, both in terms of commercialization and scalability. The CII Food and Agriculture Centre of Excellence (FACE) program on ‘Advanced Technologies Reshaping Indian Agriculture,’ brought leaders, in agribusiness, young entrepreneurs and innovators, and students from India and beyond to the CII Agro Tech 2016 platform. The program focused on strengthening the dialogue on advanced technologies and their scope in Indian agriculture, while identifying and incubating advanced technologies that have the potential to address some of the critical issues facing Indian agriculture. At the ‘Global Dialogue,' more than 20 speakers from USA, Germany, and Israel, as well as India, shared knowledge and expertise on how advanced technologies have helped farmers in their respective countries achieve higher productivity and hence higher incomes, and discussed their scope and applicability in India. The deliberations also pointed to the need for stronger partnerships in implementing successful technology interventions in India. Young entrepreneurs with successful start- ups shared their experiences and views on the way ahead ahead. With a 15-member delegation from Israel, including Winners of AgHAck competition at the CII Agro Tech
  9. 9. Communiqué December 2016 | 11 SPOTLIGHT academia, business, investors and start- ups, there was renewed commitment towards strengthening India-Israel ties, and leveraging the competence of Israel in precision farming and commercialization of technologies, to benefit India. For the first time, the Agro Tech Exhibition had an exclusive pavilion on Advanced Technologies in Agriculture. Nineteen participants, including pre- commercial and start-ups, showcased advanced and promising technologies related to agriculture, such as sensors, drones, mobile application-enabled virtual platforms, advanced logistics systems, hydroponics, and more. Fifteen of these participants pitched their technology before a distinguished jury comprising agri business leaders, investors, and experts. The top two winners, Future Farms, a Chennai-based enterprise working on hydroponics, and AGNEXT Technologies, an R&D hub based out of IIT Kharagpur, were awarded prizes of `75,000 and `50,000, respectively, and an exposure trip to Israel. About 67 students from 24 universities, IITs and IIMs participated in AgHAck 2016, a hackathon focused on agriculture. Starting from team building to interactions with mentors, and challenge champions to sharpen their understanding of the problems, and hence find better solutions, the two-day Hackathon put forth several interesting ideas with definite technology solutions related to agri marketing, crop and soil health, crop insurance, data analytics, and dairy farm management. The student teams that worked on developing technology solutions for crop insurance and on data processing and analytics were awarded `100,000 and `50,000 respectively. The top three teams were offered mentorship to build upon their ideas. As the next step, CII FACE will work with the start-up winners as well as the student teams, and provide them essential incubation and mentoring services, to harness innovations that have the potential to drive the next change in agriculture. The food processing sector is a vital link between agriculture and industry. The sector offers the potential to transform the rural landscape by improving the value of agricultural produce resulting in better remuneration to farmers, employment generation, improved supply chain infrastructure and improved nutritional intake by consumers. The food processing industry in India has made significant strides, particularly in the last two decades. According to the Ministry of Food Processing Industries, the food processing sector has been growing faster than the agriculture sector. Organized food retail, consistent export growth along with growing urbanization, increasing disposable income and changing food consumption patterns, are driving the growth of this industry in India. With a rich agriculture resource base, India is among the world’s leading growers of a variety of produce, ranging from bananas and milk, to wheat and spices. However, we are yet to make a mark on a global scale in terms of processing our produce. We process merely 2% of our fruits and vegetables, in contrast to countries like the United States (65%), China (23%) and Philippines (78%), which are far ahead in reducing wastage and enhancing the value addition and shelf life of their farm produce. Further, the food processing sector has immense potential to generate employment, directly, as well as across the entire value chain, through its forward and backward linkages. A vibrant food processing industry is also an important catalyst for crop diversification and value-added agriculture. Recognizing this potential, the Government of India has identified food processing as one of the key sectors under the ‘Make in India’ initiative and has opened it for 100% Foreign Direct Opportunities in Food Processing Sector to 'Make in India' A vibrant food processing sector will not only leverage the potential of India, but also boost the economic wellbeing of millions of farmers, says Rakesh Bharti Mittal
  10. 10. 12 | December 2016 Communiqué Given the right policy framework, the nation can deliver the agriculture productivity, profitability and sustainability agenda, says Salil Singhal SPOTLIGHT Investment (FDI). Thirty-seven mega food parks have been sanctioned, of which eight have been operationalized. To facilitate investments, a single window facilitation cell has also been created to handhold overseas and domestic investors in the sector. The tax structure has been made more favorable. Excise duty on machinery for processing has been reduced from 10% to 6%. Pre-cold storage services like pre-conditioning, pre- cooling, ripening, waxing, retail packing, and labeling of fruits and vegetables, have been exempted from Service Tax. Loans to food and agro-based processing units and cold chains have been classified under agriculture activities for priority sector lending. These initiatives have created a positive ecosystem which has led to an increase in FDI in recent times. According to data provided by the Department of Industrial Policy and Promotion (DIPP), the country received around $6.82 billion worth of FDI during the period April 2000-March 2016. No doubt, the food processing sector is poised for huge growth in India. The private sector, through investments and the introduction of new technologies, is playing a pivotal role in making India a global hub for food processing. India is projected to have the potential to attract as much as $33 billion of investment over the next 10 years and also generate 9 million jobs. Investment in the sector is being accompanied by interventions and inputs by the private sector to improve agriculture productivity, reduce wastage, and provide better remuneration to the farming community. To harness the true potential of this sector, CII is working closely with all stakeholders, including the Government, to address some of the challenges that continue to exist. The approach is multi-pronged: First, facilitate demand creation of processed food and expansion of the market by positioning India as a preferred sourcing hub. Second, align with the ‘Make in India’ initiative and encourage overseas food processing companies to partner and participate in the initiative. Third, provide quality inputs to the Government in order to create a conducive policy and regulatory framework in the country and fourth, keep the industry informed about global best practices and food processing trends. To conclude, I would like to emphasize that farm linkages with the food processing sector are critical not only to leverage the potential of India but also for the economic well-being of millions of farmers. India certainly offers a huge opportunity for investors from across the world to come and set up processing units to leverage the abundant availability of fruits, vegetables and other agri produce in the country. Rakesh Bharti Mittal is Vice President, CII, and Vice Chairman, Bharti Enterprises Ltd QThe Government has set a target to double farmers’ income by 2022. How can platforms like Agro Tech help achieve this objective? Any income enhancement requires producing the maximum at the lowest possible cost. In other words, farmers need to produce their crops by extracting the highest production from the agri inputs used, reduce waste in harvesting and transportation, and obtain the best possible prices by ensuring quality output. AgroTech is a forum that displays the entire gamut of technologies in the agriculture value chain, including those available in India as well as across the world. AgroTech also highlights the issues of finance and insurance which play a critical role in enhancing both productivity and farmer income. AgroTech therefore helps bring the latest and the best farming knowhow to the farmers, and to agri-related industries. Various conferences and seminars organized at the AgroTech bring the best minds in agriculture together to interact and share innovations. Discussions on digitalization in agriculture, water and climate change management, would also be helpful to farmers. QWhat are the major problems in the agriculture sector in India and how can we solve them? How does CII Agro Tech help 'We need a National Agri Strategy'
  11. 11. 14 | December 2016 Communiqué SPOTLIGHT in resolving some of these issues? Agriculture contributes only 14% of the overall GDP but over 55% of the population is involved in this activity. Hence, it is essential that the contribution of this sector must increase substantially to make India a strong and powerful economy. Despite the huge extent of arable land covering every possible agro climatic condition, the productivity of most of our crops is less than half that of China, and even below global averages. Poor farming practices in many parts of the country, shrinking average farm size from nearly 2.30 hectares in 1970 to less than 1.2 hectares, untenable land leasing arrangements, poor infrastructure, credit and insurance facilities, huge post-harvest losses, etc, inhibit rapid agricultural growth. We need a national agri strategy and policy to improve information exchange and digitalization, strong extension activity to ensure the most cost-effective use of inputs, latest planting and harvesting technology, and post- harvest logistic management, cold storage, and strong rural infrastructure. We must, however, recognize that we have made great progress in agriculture. Our agri exports are over $32 billion, we have the highest production of milk, bananas, okra, etc, in the world, and are the 2nd highest in food production globally. Further, our farmers are hardworking and sagacious and quickly adopt technologies. Our Horticulture Mission has been a great success. Yet, a lot remains to be done. CII Agro Tech, through its world-class exhibitions and international conferences, brings together all stakeholders, including farmers, to engage, network and explore how best to adopt and exploit newer technologies and improve farm practices which can add to rural incomes. QGiven the challenges, how can we make Indian agriculture more sustainable? Any change has to be first driven by public policy. The reforms of the 1990s have led to both qualitative and quantitative changes in our industrial and services sectors - the benefits are clear for all to see. Similarly, agriculture also needs major policy initiatives and reforms. But regrettably, agriculture being a State subject, political considerations continue to dominate agri policies. Unless economic criteria drives policy, agriculture will remain seriously challenged. Free supply of water and electricity, highly subsidized urea prices, MSP for a select few agri commodities, ambivalence on the use of genetically-modified seeds, scant respect for intellectual property and data protection when it comes to seeds and pesticides, the APMC Act, which controls agri product sales, serious deficiencies in public procurement, storage and distribution, and the supply of spurious inputs, are major issues that need to be set right to make farming sustainable. This requires strong political will and committed administrative acumen. India can be rightly proud of its entrepreneurial skills, both at the farm and the industry and services level. Given the right policy framework, the nation can deliver the agriculture productivity, profitability and sustainability agenda. Undoubtedly, initiatives such as focus on irrigation, electrification of villages soil health card, changes in insurance policies and availability of rural credit are significant steps to make agriculture sustainable. Further, digitalization, technology and innovation will play a very significant role in this, and we have compelling examples of some islands of success to give positive hope. All stakeholders, Government, bureaucracy, industry, trade and farmers need to do things differently. Dare I suggest a ‘surgical strike’ of agricultural policy reforms, to get on the platform of rapid farm income growth as this would derisk farming, and also ensure its sustainability. QThere is huge concern over the decreasing land holdings in the country. What solution do you suggest? The average land holding size has been constantly decreasing. While the total acreage of 140 million hectares has remained the same, the number of farmers has doubled, leading to sub-optimal productivity. The solution lies in land aggregation. CII believes that the way forward is to bring in legislation that facilitates leasing of land while protecting the rights of the owners. The time has come for large corporates to take up ‘aggregated farming,’ which will not only ensure higher productivity, and therefore higher incomes for farmers, but encourage others to enter this game-changing business model. Salil Singhal is Co-chair, CII National Agriculture Council, and Chairman and Managing Director, PI Industries
  12. 12. Communiqué December 2016 | 15 Powering a TECH-TONIC Shift India-UK Tech Summit Rt Hon Theresa May, Prime Minister of the United Kingdom, and Narendra Modi, Prime Minister of India, with Dr Harsh Vardhan, Minister of Science & Technology, and Earth Sciences, India; and Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall, at the India-UK Tech Summit in New Delhi COVER STORY technology I n a red-letter day for CII, two Prime Ministers, Mr Narendra Modi of India, and Rt Hon Theresa May of the United Kingdom, addressed the inaugural session of the India-UK Tech Summit, in New Delhi on 7 November. CII organizes its annual technology summit in partnership with the Department of Science & Technology, Government of India, with a different partner country each year.This year, the partner country at the 22nd edition of CII's annual technology summit was the United Kingdom. In terms of footfalls of participants, number of delegates in the entourage of the visiting premier, number of exhibits, number of high- profile speakers and the number of sessions, the three-day Summit, Event Highlights 2 Prime Ministers inaugurated 6 Ministers participated in the deliberations 200 world-renowned experts spoke 3 award ceremonies 4 publications released New India-UK collaborative industrial R&D program launched 5 conferences 30 sessions 3000 delegates with five conferences and three award ceremonies, was a runaway success. Over 3,000 visitors from all parts of the world attended the series of summits on higher education, design, intellectual property, and innovation and entrepreneurship, as well as the insightful technology and R&D sessions related to advanced manufacturing and robotics, life sciences, and smart cities.
  13. 13. 16 | December 2016 Communiqué Science is universal but technology has to be local, said Mr Narendra Modi, highlighting business opportunities for UK and Indian companies in Government programs such as Make in India, Smart Cities and Start-up India. The present Indo-UK cooperation in science and technology is driven by ‘high quality’ and ‘high impact’ research partnerships, he said. Under the Newton- Bhabha program of scientific collaboration between India and the UK, in less than two years’ time, we have started wide-ranging collaborations covering basic science to solution science aimed at addressing societal challenges, said Mr Modi. With Brexit, the UK would forge a new global outlook, said Ms Theresa May. This visit to India, her first visit outside Europe as Prime Minister, and her first trade mission, was aimed at greater trade and investment and fewer trade barriers, she said. Indian business visitors would now be eligible for the Registered Travelers Scheme of the UK, which was aimed at a facilitative visa regime, she announced. The British Prime Minister outlined a three-point agenda for her visit. One, identify business opportunities; two, look at each other’s priorities as ‘our own priorities,’ and three, break down barriers and make it easier to do business. “The CII-DST Tech Summit will provide a wide-ranging platform for a vibrant business partnership,” said Dr Harsh Vardhan, Minister of Science and Technology, and Earth Sciences, India. Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall said the bilateral summit this year would focus on two points – how to increase public investment in research, and how to get firms to invest more in science and technology. “The Prime Minister has made technology the cornerstone of COVER STORY Kumar Iyer, Deputy High Commissioner of Britain in Mumbai, and Director General, Economic Trade and Investment UK; Rt Hon Liam Fox, MP, Secretary of State for International Trade, and President of the Board of Trade, UK; Arun Jaitley, Minister of Finance, and of Corporate Affairs, India; Dr Naushad Forbes, and Chandrajit Banerjee, Director General, CII Prof Pradyumna Vyas, Director, National Institute of Design; Jo Johnson MP, Minister of State for Universities, Science, Research and Innovation, UK; Baroness Usha Prashar, Deputy Chair of the Board of Trustees, British Council, and Prof Anne Boddington, Design Council Trustee, University of Brighton Prof Partha P Chakraborty, Director, IIT Kharagpur; Manjul Joshipura, Scientist, WHO; Sir Keith Burnett, Surrey Satellites Technology Ltd; Andrew Wathey CBE, Vice Chancellor & Chief Executive, Northumbria University, and Dr Arabinda Mitra, Head – International Cooperation (Bilateral), Department of Science and Technology, India Chandrajit Banerjee; Rajiv Pratap Rudy, Minister of State (Independent Charge) of Skill Development and Entrepreneurship, India, and Emma Sinclair, Co-Founder, EnterpriseJungle
  14. 14. Communiqué December 2016 | 17 COVER STORY Toby Peters, Founder & CEO, Dearman Engine; Kishore Jayaraman, President (India & South Asia), Rolls Royce; Dr Pawan Goenka, Chairman, CII National Committee on Design, and Executive Director, Group President (Auto & Farm Sector) Mahindra & Mahindra; Amit Kalyani, Executive Director, Bharat Forge Ltd, and Prof Sir Martin Sweeting Shobana Kamineni, President Designate, CII, and Executive Vice Chairperson, Apollo Hospitals Enterprise Ltd; Rakesh Bharti Mittal, Vice President, CII, and Vice Chairman, Bharti Enterprises Ltd; Dr Harsh Vardhan, Rt Hon Theresa May, Dr Naushad Forbes, and Chandrajit Banerjee the many new programs introduced for development and his vision for technology is inspiring,” he said. Along with key departments and ministries from the UK participating in a big way in the Summit in India, event received support and participation from key ministries, such as Electronics and Information Technology, Urban Development, and Human Resource Development, as well as the Departments of Heavy Industry, Pharmaceuticals, and Biotechnology. Some of the key speakers from India were Mr Arun Jaitley, Minister of Finance, and of Corporate Affairs; Ms Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce and Industry; Mr Rajiv Pratap Rudy, Minister of State (Independent Charge) of Skill Development and Entrepreneurship; Rao Inderjit Singh, Minister of State for Urban Development; Mr Amitabh Kant, CEO, NITI Aayog; Prof Ashutosh Sharma, Secretary, Department of Science and Technology, and Prof Vijay Raghavan, Secretary, Department of Biotechnology, among others. The Tech Summit this year hosted five summits: • 22nd Technology Summit, with focus on Smart Cities; Digital Healthcare, Advanced Manufacturing and Robotics • 6th Higher Education Summit • 16th Design Summit • 3rd Intellectual Property Summit • Innovation and Entrepreneurship Summit. T h e p a r t n e r i n g government agencies for these Summits included the All India Council for Technical Education (AICTE), the National Institute of Design, and the Intellectual Property Office of India. ‘The GITA (Global Innovation and Technology Alliance) platform of CII and the Department of Science & Technology, along with Innovate UK, to support industry- related R&D projects in affordable healthcare, clean technology, manufacturing and ICT, opens new potential for Indian and UK businesses to convert scientific knowledge into technology-based enterprises.’ Narendra Modi, Prime Minister of India
  15. 15. Communiqué December 2016 | 19 VOX POPULI ‘India’s voice is getting noticed in the world, and there is no voice for protectionism in the country. The India-UK Tech Summit throws up opportunities for joint ventures and associations between India and the UK. India’s manpower resources are quickly developing competitive skills which can be leveraged by the UK.’ Arun Jaitley, Minister of Finance, and of Corporate Affairs, India ‘India and the UK have made great strides in their relationship and enjoy a multidimensional partnership. The Newton-Bhabha program and the second phase of the UK India Education and Research Initiative have set up new science collaborations for societal challenges, women and child welfare, weather and climate change research, etc. The two countries must explore innovative technologies and knowledge creation for wealth creation.’ Dr Harsh Vardhan, Minister of Science & Technology and Earth Sciences, India ‘Brexit offers a huge opportunity for UK-India economic interaction in areas such as Life Sciences, infrastructure, and Services, among others. The new Department of International Trade, which would have four Ministers, would help in trade facilitation.’ Greg Hands, MP, Minister of Trade and Investment, UK ‘India and the UK are ‘perfect partners’. Today, we are here to prove to India that we are the best for R&D, Technology, Science and Education… Brexit is a new opportunity for an outward-looking UK. A new Joint Working Group of senior officials on trade and investment has been set up for regular dialogue to address removal of barriers to trade. The Tech Summit is vital to the vision of transforming the future of bilateral relations.’ Rt Hon Liam Fox, Secretary of State for International Trade, UK ‘While India has emerged as one of the most open economies in the world, the Western world has become more protectionist, even while advocating free trade. There is a need for free trade in cross-border movement of manpower as well, and the UK should allow meritorious people from India to work in the country.’ Amitabh Kant, CEO, NITI Aayog ‘The United Kingdom and India have an extraordinary opportunity to collaborate in what is known as ‘precision medicine,’ at affordable cost.’ Prof K Vijay Raghavan, Secretary, Department of Biotechnology, India ‘We do not need to re-invent our wheels of innovation, but we do need to invent certain local wheels such as digitization and building a sound digital infrastructure to achieve good decision-making, good governance and developmental roadmaps.’ Prof Ashutosh Sharma, Secretary, Department of Science & Technology, India ‘To raise the share of manufacturing in India’s GDP, the sector must grow at double the average rate of the past 25 years. Technology would be integral to the effort. Indian educational institutions need to raise the share of their expenditure on R&D from the current 4% to 20% of total R&D expenditure, while private firms must increase their share from the present 0.3% of GDP to 1.5%.’ Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall COVER STORY
  16. 16. 20 | December 2016 Communiqué COVER STORY T he results of the 5th edition of the All India Council for Technical Education (AICTE)-CII Survey of Top Industry-Linked Technical Institutes 2016 were announced at the India-UK TECH Summit. One award each was given in five categories, which included 4 degree and 1 diploma level award in engineering, pharmaceutical and management categories. Compared to the 21 awards which were given last year, the number of awardees this year was considerably lower at 5. However, this was not in any manner a reflection of the performance of the institutes but was meant to maintain the exclusivity of the awards, as advised by the jury this year, explained Prof Anil Sahasrabudhe Chairman, AICTE. The survey, said Dr B N Suresh, President, Indian National Academy of Engineering, (INAE), and distinguished professor, Indian Space Research Organization, (ISRO), who headed the jury this year, is a good way to encourage institutes to start interacting with industry and to look at their output from a relevance perspective. Dr Y S Rajan, a member of the expert group of the survey, who has been part of the process since its inception, said the survey has taught institutes how to maintain records and document the work they are doing with industry. “The survey has maintained its high and exacting standards of excellence over the years. The process of arriving at the winners has been rigorous despite several challenges this year,” said Mr Vijay Thadani, Chairman, CII National Committee on Higher Education, and Vice Chairman & MD, NIIT, & Co-Founder, NIIT University. In addition to the awards, a new feature was added in the survey this year – the presentation of report cards and certificates of participation to individual institutes who had registered for the survey separately with CII. The purpose of the report cards is to give individual level guidance to institutes. As many The Winners Category Winner Sponsor Best Industry-linked Electrical & Allied Engineering Institute (Standard category, Degree) College of Engineering Pune ELICO Ltd Best Industry-linked Electronics & Allied Engineering Institute (Standard category, Degree) Dronacharya Group of Institutions ELICO Ltd Best Industry-linked Electronics & Allied Engineering Institute (Standard category, Diploma) Thiagarajar Polytechnic College ELICO Ltd Best Industry-linked Emerging Management Institute L N Welingkar Institute of Management Development & Research, Bengaluru Hindustan Unilever Best Industry-linked Pharmacy Institute Acharya & B M Reddy College of Pharmacy Cadila Pharmaceuticals (Award in the Memory of Late Indravadan Modi) Recognizing Industry-Institute Linkages as 36 institutes got these, nearly half of them in the platinum category, denoting high linkages with industry. This edition of the IndPact survey had 890 participating institutes. Of these, 18% were in the platinum category of high industry linkages; 54% in the gold or medium category, and 28% in the silver or low category of industry linkages. Initiated in 2012 by CII and the AICTE, the IndPact Survey is an objective source of information on industry – academia collaboration. Over the years, its scope has been expanded to include four major streams of study, engineering, management, pharmacy, and architecture/planning. In the online survey, the first level of basic scores is calculated through algorithms set after extensive consultation and brainstorming with industry and academic experts. At the award ceremony of ‘AICTE-CII Survey of Industry Linked Technical Institutes 2016’
  17. 17. 22 | December 2016 Communiqué COVER STORY Presentation of the CII Industrial IP Award 2016 for Top Patent and Trademark Driven Industry to Wockhardt Ltd The CII Industrial Intellectual Property Award recognizes and celebrates Indian enterprises for excellence in Intellectual Property (IP) protection and generation to fuel their economic growth, and the country’s economic progress. It aims to encourage organizations to foster a culture of IP management and commercialization across industry segments. This year, the award, open to all types of industries which thrive on IP driven-growth, was presented in six categories: 1. Top Patent-driven Industry (Large): Wockhardt Ltd 2. Top Patent-driven Industry (Small & Medium): Concept Medical Research Pvt Ltd 3. Top Trademark-driven Industry (Large): Wockhardt Ltd 4. Top Trademark-driven Industry (Small & Medium): Quick Heal Technologies Ltd 5. Top Design-driven Industry (Large): Siddhi Vinayak Knots & Prints Pvt Ltd 6. Top Design-driven Industry (Small & Medium): Resil Chemicals Pvt Ltd. Celebrating Excellence in Intellectual Property Development CII Industrial Innovation Awards 2016 The CII Industrial Innovation Awards were institutionalized by CII in 2014 to recognize and celebrate innovative Indian enterprises across industry segments. A total of 130 entries were received this year from various large, medium and small enterprises, out of which the jury selected the top 25 most innovative companies. From these 7 companies were given special awards under various categories. Grand Award: JCB India Manufacturing Sector Large Enterprise: JCB India Medium Enterprise: Grind Master Machines Pvt. Ltd Micro & Small Enterprise: (i) Vyome Biosciences Pvt. Ltd (ii) Lotus Wireless Technologies India Private Ltd Service Sector Large Enterprise: Tata Power Delhi Distribution Ltd Medium Enterprise: Cholan Tours Pvt Ltd Micro & Small Enterprise: Rajasthan Fort and Palace Pvt Ltd Along with the category winners, the 25 most innovative companies were recognized for their excellence in Innovation. Team from JCB India receiving the Grand Award for the 'Most Innovative Company'
  18. 18. Communiqué December 2016 | 23 INDIA AND THE WORLD India-UK CEO Forum The meeting of the India-UK CEO Forum was organized in New Delhi on 7 November, coinciding with the India visit of Rt Hon Theresa May, Prime Minister of the United Kingdom. The Forum, co-chaired on the India side by Mr Ajay G Piramal, Chairman, Piramal Enterprises Ltd, and on the UK side by Sir Gerry Grimstone, Chairman, Standard Life, discussed challenges and opportunities in the India-UK business landscape. CII was the official Institutional Partner to the Forum from India, with the UK-India Business Council (UKIBC) from the UK. The UK is the largest G20 investor in India and India is the third-largest investor and second-largest job creator in the UK. The Forum is committed to addressing issues in bilateral trade and investment, as well as pursuing new areas for collaboration. In the first meeting of the India-UK CEO Forum since the UK voted to exit the European Union, members felt the exit presents an opportunity to build a new, stronger India-UK trade and investment relationship. They welcomed and supported the commitment of both Governments towards this. It was announced that an Advanced Material and Manufacturing Technology Center would be set up in India, modelled on the high-value manufacturing Catapult Centres of UK, with equal participation from the respective Governments, industry members and academia. The Indian members of the Forum raised several issues including easing global talent mobility in the UK, addressing the technology-related skills shortage in the UK, avoiding double taxation for Indian industry, institutionalizing a social security totalization agreement, and according mutual recognition of qualifications. They also sought further clarity and certainty in emerging policies, post-Brexit. Several reports and papers were launched at the Forum with recommendations to achieve these objectives. These include: • A report on Smart Cities and the digital economy with proposed reforms to accelerate the roll-out of Digital India. • An overview paper on the India UK Financial Partnership since its inception. • A paper on Financial Inclusion focusing on access to affordable finance for MSMEs and affordable housing finance. • A Responsible Shareholder Engagement paper on corporate governance through an Indian Stewardship Code. • A concept paper has been presented outlining a program to facilitate collaboration between UK and Indian start-ups and to support a broader knowledge exchange by rolling out a program to link incubators at Indian higher education institutions with incubators in the UK, including those associated with universities. This will enhance India’s start-up program, develop new forms of engagement between UK and Indian universities, and facilitate a start-up bridge between entrepreneurs. The CEO Forum also discussed collaboration and capacity-building in the area of insolvency, as India implements a major reform through the Insolvency and Bankruptcy Code 2016.Other areas identified for closer cooperation include tourism and hospitality, renewable energy and pharmaceuticals. Narendra Modi, Prime Minister of India, and Theresa May, Prime Minister of the United Kingdom, with members of the India-UK CEO Forum in New Delhi
  19. 19. 24 | December 2016 Communiqué MINDSPACE media & entertainment T he Indian Media & Entertainment (M&E) sector has huge room for growth and can create 10 million jobs without much spending from public infrastructure. In recent times, the industry is witnessing rapid action on policy interventions from the Government. It is very encouraging that we will soon have an updated and contemporary Cinematograph Act replacing the out- dated Act of 1952 for promoting cinema as a form of creative expression. Also, the Ministry of Information & Broadcasting has initiated the Press and Registration of Books and Publications (PRBP) Bill with a view to rehaul and replace the age-old PRB Act, 1867. The M&E Industry also looks forward to the rollout of the Goods and Services (GST) regime. Visible actions from the Government on the policy front, as well as new initiatives from various State Governments are showing encouraging new growth prospects for the sector. In order to harness India’s soft power in the realm of cinema, the Ministry of Information & Broadcasting (I&B) has set up a Film Facilitation Office to promote and facilitate shootings by foreign film makers in India. The Ministry has also included ‘Most Film-friendly State’ as a special category award in the National Film Awards this year. The Shyam Benegal Committee report for holistic interpretation of the provisions of the Cinematograph Act/Rules is under consideration. The Ministry is in the process of setting up the National Centre of Excellence for Animation, Gaming and VFX in Maharashtra, envisioned as a world-class institution to provide skilled manpower in this emerging area. While more clarity is needed, the FDI relaxation for the M&E sector across the board will result in more investment and consolidation in the industry. The Big Picture CII has been driving several initiatives to promote the growth and development of the media and entertainment sector in India under the umbrella of ‘The Big Picture.’ The vision to create growth templates in all M&E verticals and bring the industry together to speak in one voice on all major issues, is being guided by the finest creative and business minds from the Government, regulators, academia and civil society. The CII National Committee on M&E strongly believes that India is set to emerge as a global M&E hub. The main objective is to scale the sector towards achieving $100 billion. With this objective, CII is focusing on several major M&E issues this year. From a comprehensive Media & Entertainment Sector in India ‘Get Disrupted to Innovate’ CII strongly believes that India is set to emerge as a global M&E hub. Buoyed by the great success of the recent Big Picture Summit, our second lead maps the current global scenario and evolving trends, and attempts to chart out a carefully-planned path to convert this belief into reality.
  20. 20. Communiqué December 2016 | 25 MINDSPACE taxation paper to mapping the success of policy initiatives for the sector by State Governments, the agenda is to scale the industry to its true potential. • Influence of emerging technology in the M&E sector, spanning cloud storage, Internet of Things (IoT), multiple screens, new delivery mechanisms, transmission and communication, et al. • Preparation of a document on GST and its impact on various media and entertainment verticals. • Issues related to Digital Entertainment – the way forward for the industry. Industry leaders are optimistic of enabling a digital payment process, which will benefit the entire M&E sector. • Continuing efforts to work with the Government to combat piracy, which becomes even more relevant as the industry is moving towards multi-platform. CII welcomes the Telangana Government’s initiative in setting up the country’s first Intellectual Property Crime Unit, to curb digital piracy and protect intellectual property. • Work on action points to increase movie screen density. Multiplexes in the country are set to double in two to three years. • Preparation of a paper on talent pipeline and job creation for the media and entertainment sector. • The Cinematograph Act of 1952 should be made contemporary to meet the present-day challenges, and the entire film certification process needs to be made more transparent and speedy. • Engage with the M&E start-up ecosystem to build synergies. Big Picture Summit 2016 The CII Big Picture Summit 2016 has emerged as an annual meeting ground for leaders to deliberate on the way forward for the M&E industry to accelerate growth. The 5th edition of the Summit, held recently in New Delhi, deliberated on challenges for the M&E industry, and ways to overcome them, in order to achieve the growth target of $100 billion in the next five to seven years. With technology setting a relentless pace of change, and start-ups driving this change across the world, ever-extending the frontiers of innovation and disruption, the Summit this year focused on ‘Embracing Disruption to Stay Competitive.' The growth of varied platforms such as 4G, broadband, mobile technologies, and digital media has enabled the M&E sector to move towards ‘convergence across platforms and content.’The deliberations provided useful insights to move forward, by innovating and redefining business modules. Digital and mobile tools have been leading to paradigm shifts in the M&E sector, said Mr M Venkaiah Naidu, Minister of Information and Broadcasting, Housing, and Urban Poverty Alleviation, at the Summit. He said the Government's campaigns such as ‘Make in India,’ ‘Skill India’ and ‘Digital India,’ and the roll-out of the GST, are clearly positive signals of the new transformation. Seeking collaboration with the industry, Mr M Venkaiah Naidu said the “I&B Ministry would play the facilitator’s role for the M&E sector.” Several Ministers, including Mr Rajiv Pratap Rudy, Minister of State (Independent Charge) of Skill Development and Entrepreneurship; Col Harit Nagpal, CEO, Tata Sky; R S Sharma, Chairman, Telecom Regulatory Authority of India (TRAI); M Venkaiah Naidu, Minister of Information and Broadcasting, Housing and Urban Poverty Alleviation; Sudhanshu Vats, Chairman, CII National Committee on Media & Entertainment, and Group CEO, Viacom 18, and Ramesh Sippy, Film Producer and Director, at the Big Picture Summit 2016 in New Delhi
  21. 21. 26 | December 2016 Communiqué MINDSPACE Rajyavardhan Rathore, Minister of State of Information & Broadcasting, Mr Vijay Goel, Minister of State (Independent Charge) of Youth Affairs and Sports, and Minister of State ofWater Resources, River Development & Ganga Rejuvenation and Mr Manoj Sinha, Minister of State (Independent Charge) of Communications, and Minister of State of Railways, as well as Mr R S Sharma, Chairman, Telecom Regulatory Authority of India (TRAI), and Mr Rajiv Aggarwal, Joint Secretary, Department of Industrial Policy and Promotion (DIPP), among a galaxy of eminent thought-leaders,also addressed the Summit. Key Takeaways • Need to Ensure Parity: Convergence is not happening, it has happened. Sooner or later we will see the kind of consolidation being witnessed in the West. The regulatory framework must pre-empt this and prepare for it. This means ensuring parity across different forms of media so that there is no regulatory arbitrage. • Friends for Success: Technology and data are our friends, not foes. Technology/ data and content are generally viewed as two sides of a coin. Instead, we need to see them as a potent currency that can revolutionize success and monetization. • Professionals Needed: The M&E sector offers thousands of jobs in the non-glamour, behind-the- content world. There is a need for professionals Convergence: The New Multiplier CII collaborated with the Boston Consulting Group (BCG) for the second consecutive year to release a report titled, ‘Convergence: The New Multiplier for Indian Media & Entertainment's $100 Billion Vision,’ at the Big Picture Summit. Releasing the report, Mr M Venkaiah Naidu, Minister of Information and Broadcasting, Housing, and Urban Poverty Alleviation, observed that ‘there is a wrong feeling that the regulators are all strangulators.’ He announced that his Ministry would facilitate devising an appropriate regulatory framework. The report identifies three vectors to help the industry achieve its $100 billion vision: • Tapping rural un-connected customers who have the potential to grow to over 300 million by 2020. • Capturing a large share of time of digitally-connected consumers, as digital consumption has been found to be additive, rather than a substitute to traditional media • Creating a supply explosion for strategically segmented audiences, which is likely to reap rich dividends, as has been seen in States like Maharashtra and Andhra Pradesh. The report also identifies ecosystem interventions to pave the way for growth. The metrics for monetization need to be reflective of growth in the audiences reached as well as the quality of engagement. Concerted efforts from the Government, academia and industry bodies are required to create a large and skilled workforce. Finally, the report calls upon the Government and regulators to support the M&E industry on its journey to achieve its full potential, by driving the ease of doing business, be it for raising funds, or providing a facilitative licensing regime. trained in analytics to draw consumer insights for new content, engage consumers and build improved monetization models. • Tremendous Opportunity: India has a huge opportunity to position itself as a digital R&D content hub for the world. Digital platforms are proliferating and there are tremendous opportunities, especially for creators, storytellers and technology-providers. • Digital Spread: The spread of digital technology is offering equal opportunities to start-ups as well as established media companies to participate in the growing global M&E market. • 3 Cs: India’s Media and Entertainment industry is going through a rapid transition to a direct-to consumer world through new digital technologies. Curation, customization and convenience are playing a prime role in this disruptive environment. Highlights • The confluence of telecom, technology and content will rapidly transform the Indian M&E sector. • Rural consumption has been growing at a faster pace than urban consumption in India in recent times. • A strong anti-piracy law with even stronger enforcement is the order of the day and is critical for the success of convergence, which would enable monetization.
  22. 22. Communiqué December 2016 | 27 MINDSPACE QWhat are the disruptions you would like to see in the Indian media and entertainment space? To be brutally honest, I’m sure all of us would be delighted if the disruptions that hit us are the ones that we have foreseen! That said, the nature of our business is such that there are bound to be disruptions that we are not prepared for.This is where an organization’s DNA comes into play. We have to be ‘built’ to be destroyed so that we can build again. One key disruption that we are already beginning to see (and its impact is only going to get stronger) is in the area of Big Data and Analytics. The preparation for this has to be on two fronts: we have to equip ourselves from a technology perspective to leverage this disruption, and, more importantly, at the ‘people level,’ we have to ensure a favorable, behavioral disposition towards data-driven insights. I have always maintained that data and creativity go hand in hand, the ‘guts+insight’ approach. While intuition can never be replaced, data helps one make better decisions. Of course this also means that the quality of data, especially consumer data, needs to be dialed up. Some work has already been done and more is happening as we speak. QDo you see visible changes happening around media business today? The transformation is towards digital... Changes are visible and their impact is significant. While ‘digital’ is an amorphous term, it’s clearly the No. 1 buzzword across industries. For M&E organizations, this has three broad ramifications: • The proliferation of digital/online platforms will expedite our transition towards becoming B2C organizations. • India is a land of many countries and therefore digital content consumption will continue to add to (and not take away from) consumption of content on traditional platforms. • While the growth in digital platforms makes content creation a more democratic process, quality content will continue to command a premium with both consumers and with brands. Of course, we will need to enhance our ‘spotting’ abilities as we scout for talent from a wider pool of individuals, but then again, that is par for the course. QFrom the policy perspective, what are the three things that would help ease challenges in the Indian M&E sector? Several measures can be taken and several have already been taken. This Government is extremely responsive and ‘pro-dialogue’ with all stakeholders. I would like to take a slightly different route this time around. Generally, our focus is on sector-specific regulations that are aimed at giving our sector a fillip. However, in doing so, I feel that we are missing the ‘big picture’.You see, given our size (we’re smaller than many other sectors) and our status as a ‘multiplier,’ we have more to gain from an economy that is buoyant in the overall sense. In this regard, the recent demonetization initiative is a welcome step. Yes, it is creating some turbulence in the short term, but it is a bitter pill that will safeguard our future growth in the medium term. We expect to see a great deal of liquidity in the economy in a few quarters and this is bound to increase public and private spending. This alone will have cross-over effects on our sector, as we will see advertisers wanting to spend more to take advantage of this buoyancy. GST is another positive as it has a direct positive impact on overall GDP growth. We hope to see it become a reality soon. Finally, we’d like to see the Digital India program gather more pace, as growth in internet connectivity is bound to increase video content consumption. All these aspects, though not directly aimed at our sector, are likely to impact it greatly in the foreseeable future. Specifically, I see the transition towards a regime of single- window, e-enabled, time-bound clearances on all fronts as a natural follow-up, given the impetus on transparency, quality governance and ‘ease of doing business.’ 'We need to Leverage Disruption' Sudhanshu Vats is Chairman, CII National Committee on Media & Entertainment, and Group CEO Viacom 18 Media Pvt. Ltd Data and Creativity go hand-in hand, says Sudhanshu Vats
  23. 23. 28 | December 2016 Communiqué MINDSPACE ‘The growth of varied platforms such as 4G, b r o a d b a n d , m o b i l e technologies and digital media has enabled the sector to move towards convergence across platforms and content creation. There is a huge opportunity to transform India into a global hub for digital media.’ M Venkaiah Naidu, Minister of Information and Broadcasting, Housing and Urban Poverty Alleviation ‘The manpower required for the M&E industry is huge. We need to institutionalize training, develop National Occupation Standards as per the requirements of the industry and create Qualification Packs which correspond to specific job roles within the sector. All these things have to be done with a calibrated approach.’ Rajiv Pratap Rudy, Minister of State (Independent Charge) of Skill Development & Entrepreneurship ‘ T h e M & E i n d u s t r y should not shy away from disruption. Disruptions have occurred since time immemorial. The Indian M&E industry is undergoing massive changes. These alterations are being witnessed in terms of content creation, delivery of content to consumers, and the manner in which it is being consumed.’ Col. Rajyavardhan Rathore, Minister of State of Information & Broadcasting ‘In the present era of convergence, the distinction between the telecom, IT and media and broadcasting sectors is getting blurred. Content, communication platforms and technology have become seamless and one cannot survive without the other in reaching out to consumers.’ Manoj Sinha, Minister of State (Independent Charge) of Communications, and Minister of State of Railways ‘Digital media broadcasting will play a critical role in bringing about a change in sports broadcasting in India. Broadcasters must also focus on how sports as a product is delivered to audiences in rural areas so as to popularize the culture of sports.’ Vijay Goel, Minister of State (Independent Charge) of Youth Affairs and Sports, and Minister of State of Water Resources, River Development & Ganga Rejuvenation ‘India is in the midst of a digital revolution with high- speed internet data, multiple channels of consumption, and consumers deciding the time and location of consumption, while conventional delivery platforms are dying. It is imperative that new business models are created.’ R S Sharma, Chairman, Telecom Regulatory Authority of India (TRAI) ‘Our training institutions need to be different. In a disruptive environment, brick and mortar training doesn’t work, we need new curriculum.’ Kiran Karnik, Chairman, CII Mission on Digital India, and CII National Committee on Telecom & Broadband B Y T E S
  24. 24. Communiqué December 2016 | 29 ‘India is a different market and the media business relies on advertising revenue. A more philosophical question is, does the Indian media need FDI? There are enough resources, and more investment available. I do not know whether there is a requirement for FDI in the media sector. What we need are good business models and right valuations.’ Rajiv Verma, CEO, Hindustan Times ‘For far too long, the news in this country has been using the political class as crutch to lean on, thereby humiliating itself. This is going to change, and, in fact, is already changing. I dream of an independent media which has the maturity to regulate itself and is fearless enough to be answerable to nobody but itself.’ Arnab Goswami, former Editor-in-Chief, Times Now ‘I don’t think our fundamentals are in place in the cable/DTH business. It is difficult for us to think about disruption.’ Harit Nagpal, MD & CEO, Tata Sky ‘You need to destroy in order to build and create something new. If you had to destroy one particular aspect about your business today, what would it be? It’s not an easy conversation. But trust me, it will make the future easier.’ Sudhanshu Vats, Chairman, CII National Committee on Media & Entertainment, and Group CEO, Viacom 18 Media Pvt. Ltd ‘We are going through a major digital transformation and innovation in the media space. How to engage your audience, how to empower the workforce, how to optimize operations and how to transform your project – these are the four pillars of digital transformation.’ Bertrand Launay, Chief Operating Officer, Microsoft India ‘There is censorship at various levels. For society, for the individual, and for all of us to grow, we have to give space for freedom. We have to believe in each other, in the system, and encourage open conversations for sensible cinema, literature and artistic expression.’ Nandita Das, Filmmaker and Actor ‘Films are much better when they are driven by directors. Each time the actor become more important and when they demand 60% of the total revenue, the quality of the film goes down.’ Shekhar Kapur, Film Director, Actor & Producer ‘Today if you make a film of `150 crores, out of that, `100 crores goes to the actors. When I made Sholay the actual cost of the star cast was `20 lakhs, as compared to the total budget of `3 crores.’ Ramesh Sippy, Film Producer and Director MINDSPACE
  25. 25. 30 | December 2016 Communiqué E very day, each of us breathes in about 15,000 litres of air. This air provides us the essential oxygen but has dangerous levels of pollutants, which that pose a threat to our environment, health and well-being. Air pollution is a significant cause of mortality and morbidity in India. A World Bank report states that pollution from particulate matter can cause loss of 3% of GDP of the country, of which outdoor air pollution accounts for 1.7% and indoor air pollution 1.3%. Rapidly expanding urban areas, like Delhi and the NCR, are on the frontlines of the fight against air pollution and climate change. City-level management of air pollution and emissions is a complex task requiring long-term commitment and actions from multiple stakeholders including industry, Government, civic bodies, and citizens. Many schemes and measures have been implemented, but with limited impact and acceptance. Air pollution is a complex phenomenon and ambient air quality level depends not only on the sources contributing to ambient air pollution but also on meteorological conditions. In order to take substantive action, the sources of air pollution have to be identified and prioritized. CII, in partnership with NITI Aayog, launched an initiative for ‘Improving the air quality of Delhi-NCR’ on 17 November in New Delhi. This initiative will work towards engaging business, civil society and Government to learn from peers and take actionable steps to improve the air pollution in Delhi NCR. Its specific objectives are to • Develop an integrated approach, bringing together policy-makers, industry, academia, community and civil society • Build consensus and get buy-in from stakeholders on actions for improving air quality in NCR • Deliver voluntary commitments from stakeholders towards reducing air pollution • Influence adherence to existing policies and advocacy towards newer policies. Studies show that the spectrum of air pollution in Delhi can be attributed to three main areas: transport, industry and domestic sources, such as uncontrolled burning of solid waste, seasonal burning of crops, etc. The initiative will therefore focus on these three areas. “There is no barrier or border for air. The country needs integrated action towards improving the quality of the air we breathe,” said Mr Suresh P Prabhu, Minister of Railways, at the launch of the Clean Air-Better Life initiative, organized by the CII-ITC Centre of Excellence for Sustainable Development, and supported by Cummins Inc. He congratulated NITI Aayog and CII for partnering to raise awareness, take actions and foster the use of technology to deliver on this fundamental right of clean air. “The voice of the people must be heard. People living in the NCR should push for action, should demand cleaner air” said Mr Amitabh Kant, CEO, NITI Aayog, at the launch. He advocated strong radical actions over a sustained period to meet the pollution emergency. Mr Tom Linebarger, Chairman & CEO, Cummins Inc, spoke of using technology to develop solutions to restore the quality of air in Delhi NCR. A well-known study carried out in 2015 in Delhi by IIT Kanpur identified 12 major sources responsible for poor air quality in Delhi. These can be put under three main categories: area sources such as MSW burning, fly ash, road dust etc, point sources such as power plants, etc, and line sources, including vehicles, explained Prof Mukesh Sharma, from IIT Kanpur. Clean Air, Better Life Initiative Tom Linebarger, Chairman & CEO, Cummins Inc; Suresh P Prabhu, Minister of Railways; Amitabh Kant, CEO, NITI Aayog, and Anant Talaulicar, Chairman, CII Clean Air – Better Life Initiative, Chairman, CII Manufacturing Council, and CMD, Cummins India, at the launch of the ‘Clean Air - Better Life’ Initiative, in New Delhi INITATIVE environment
  26. 26. Communiqué December 2016 | 31 Sectorscape Textiles and Apparel Weaving the Way CII and the Boston Consulting Group brought out a detailed report ‘Weaving the Way: Breakout Growth Agenda for the Indian Apparel, Made-ups and Textile Industry’ to outline the challenges and develop solutions in the Indian apparel, made-ups and textile industry in November 2016. The report notes the rapid changes underway in the global textiles and apparel trade as China’s predominance wanes and new manufacturing hubs such as Vietnam and Bangladesh emerge. The report points out that if the industry achieves breakout growth as per its potential, it would generate 50 million jobs by 2025, a large majority of them for women. The potential economic benefits are identified as revenue of $300 billion by 2025, a multiple of three from the current position. In this, the domestic market could account for a 2.5 times jump to $150 billion and even the foreign exchange earnings could go up to a similar size. The report observes that there are many challenges to meeting this potential, such as small scale, fragmented clusters, restrictive labor laws and unpredictable wage movements, high operating costs due to taxation and subsidy structures, market access barriers in key markets such as the EU and the US, high cost of working capital, low brand visibility, poor infrastructure, logistics delays, and lack of product development a n d p r o c e s s improvement. The new apparel package has taken many steps in the right direction. A landmark provision in the policy is to allow more flexible work hours and fixed term employment, as per industry concerns. The Government has devised innovative means for direct benefit transfer to new workers, and has promised to contribute 12% of the salary directly into new workers’ accounts. Export drawbacks for the first time include State taxes and cesses, which are expected to further be extended with the roll-out of the goods and services tax. Apart from suggesting the above labor regulation changes, the report makes some innovative recommendations. Job-linked scale through a ‘Make in India’ scheme could provide a slab-based incentive linked to the number of additional jobs created, to be availed of by entrepreneurs or industrial parks, it says. At present, 70 clusters contribute 80% of the output. The report suggests that State Governments should promote infrastructure with plug and play facilities. Also, different operating models can be built, such as the hub and spoke model, or notified apparel parks. Duties and taxes must be rationalized to avoid inefficiencies and high energy and overall costs. A power subsidy, inclusion of power charges under GST, and similar rates for both cotton and synthetic products are recommended. Industry should engage in driving productivity through extensive training and investments in process improvements and automation. To encourage hybrid domestic-export models, the report suggests the China model of VAT rebates, and Smriti Irani, Minister of Textiles, releasing the CII-BCG study, 'Weaving the Way: – Breakout Growth Agenda for the Indian Apparel, Made-ups and Textile Industry' in New Delhi, with (L-R) Arindam Bhattacharya, Senior Partner & Director, BCG – India; Rashmi Verma, Secretary, Ministry of Textiles; B K Goenka, Co-Chairman, CII National Committee on Textiles, and Chairman, Welspun Group, and Gautam Nair, Co-Chairman, CII National Committee on Apparel, and MD, Matrix Clothing
  27. 27. Communiqué December 2016 | 33 SECTORSCAPE Healthcare National Conference on Vaccine Industry For the first time ever, all leading vaccine manufacturers of India came together under the aegis of CII to develop clear guidelines for various approval processes in the vaccine manufacturing space in the country. We must move from ‘Health for All’ to ‘Health By All,’ and the entire Indian healthcare industry has to get involved for effective healthcare delivery in India, said Mr CK Mishra, Secretary, Ministry of Health and Family Welfare, addressing the inaugural session of the CII National Conference on ‘Vaccine Industry in India- Reforms required for early accessibility, growth and sustained competitiveness,’ on 10 November in New Delhi.The vaccine industry has a critical transformational role to play in this regard, he said. the exempt-credit-offset method of carrying forward unadjusted rebates. This would also help overcome the issues under the Merchandise Export Incentive Scheme which will have compliance issues with WTO in 2017. Logistics support is a key recommendation, especially integration with Bangladesh through single-day transit. Shipping turnaround times must be improved and adequate hinterland connectivity built with key textile parks. The report strongly calls for a Free Trade Agreement with the EU. An added provision could be to treat the poor States of India on a similar basis as least developed countries. (LDC). An incentive for innovation and technology is also recommended. Rebranding is essential, accompanied by focused marketing interventions such as global roadshows. Companies should invest in product development and in cutting edge innovations. The CII-BCG report was shared with the Government ahead of the announcement of the new policy for the industry, and several of its suggestions have been included. The policy certainly sets the stage for reviving the competitiveness of the Indian textile, apparel and made-ups industry. Unlocking its value can bring huge gains to the economy, and the CII-BCG report is a valuable contribution to this effort. Information and Communications Technology Session on Internet Governance CII, in partnership with the Ministry of Electronics and IT, organized an exclusive session on ‘Internet Governance: Why Industry should engage?,’ coinciding with the 57th meeting of the Internet Corporation of Assigned Names and Numbers (ICANN) on 5 November in Hyderabad. Mr Ravi Shankar Prasad, Minister of Electronics and Information Technology, and Law and Justice, in his S Premkumar, Co-Chairman, CII National Committee on IT & ITeS, and Executive Vice Chairman & MD, HCL Infosystems Ltd; Kiran Karnik, Chairman, CII National Mission on Digital India, and Chairman, National Committee on Telecom & Broadband; Ravi Shankar Prasad, Minister of Electronics & IT, and Law & Justice; Aruna Sundararajan, Secretary, Ministry of Electronics & IT, and Sally Costerton, Senior Advisor to the President, and Senior Vice President, Global Stakeholder Engagement, ICANN, at a session on Internet Governance in Hyderabad inaugural address, urged the Indian private sector to step up its participation in global policy-making processes related to the internet. The next large wave of internet users would require a more inclusive and affordable internet, he said. Ms Aruna Sundararajan, Secretary, Ministry of Electronics and IT, called for industry engagement in internet governance, standard setting, and policy development.
  28. 28. 34 | December 2016 Communiqué Financial Sector CII 7th Financial Markets Summit While Indian industry has traditionally been funded pre- dominantly by banks, the prevailing economic situation calls for financial markets to play an increasingly important role in generating incremental funding, for the expansion of the Indian economy. This necessitates a strong policy and regulatory push towards the development of the financial markets. To catalyze policy-level discussions on developing and deepening India’s Financial Markets, and to make them equally lucrative for issuers and all types of investors, CII organized its 7th Financial Markets Summit with the theme ‘Indian Financial Markets: The Next Wave’ Ashishkumar Chauhan, MD & CEO, Bombay Stock Exchange; U K Sinha, Chairman, SEBI, and Nimesh Kampani, Chairman, CII National Committee on Financial Markets, and Chairman, JM Financial Group, at the 7th Financial Markets Summit in Mumbai SECTORSCAPE Dr Rajesh Jain, Joint MD,Panacea Biotech Pvt. Ltd; KL Sharma, Joint Secretary, Ministry of Health & Family Welfare; CK Mishra, Secretary, Ministry of Health & Family Welfare; Dr Suresh Jadhav, Executive Director, Serum Institute of India Ltd; and Dr GN Singh, Drug Controller General of India, Central Drugs Standard Control Organization, at the Vaccine Conference in New Delhi The Indian Government is fully geared to provide an enabling regulatory environment which would facilitate in creating a comprehensive national healthcare deliver y system, stated Mr C K Mishra. He released a position paper titled ‘The Make in India Imperative – Position Paper on Regulatory and Policy Changes required for Sustained Competitiveness of the Indian Vaccine Industry,’ prepared by Sathguru Management Consultants for CII. The paper is based on discussions with members of the Task Force on Vaccines of the CII National Committee on Biotechnology, and a few regulatory experts. Mr K L Sharma, Joint Secretary, Ministry of Health and Family Welfare, urged the industry to submit specific recommendations, and assured a speedy response by the Government. Expressing optimism in the capability of the Indian vaccine industry, Mr Sharma said this niche sector is going to be game-changer, and the Indian Government is proud of its achievements. Responding to CII’s call for a single window system and ease in clinical trial regulations, Dr G N Singh, Drug Controller General of India, Central Drugs Standard Control Organization, announced the formation of an Expert Group, to be formed with CII, to work towards the speedy resolution of issues in a time-bound manner without compromising critical aspects like quality, patient safety and patient management. He appealed to industry to chalk-out a mechanism for a post marketing survey, so that hospitals would have a proper survey mechanism in place. Earlier, Dr Rajesh Jain, Joint MD, Panacea Biotech Pvt Ltd, and Convener of the Conference, in his welcome address, urged the Government to set up a Regulatory Innovation Cell, and requested for minimizing unnecessary paper work, maximizing innovation, and capitalizing Mission Indradhanush, by developing vaccines faster, to boost the National Immunization Program. The Task Force on Vaccines is currently working on preparing clear guidelines for various approval processes for submission to the Health Ministry.
  29. 29. Communiqué December 2016 | 35 on 10 November in Mumbai. Mr U K Sinha, Chairman, Securities and Exchange Board of India (SEBI), in his inaugural address, highlighted the various measures being undertaken by SEBI to give an impetus to the growth of primary markets in India. He expressed confidence that the current year could turn out to be a record year for the primary markets. He also described the steps being undertaken by SEBI and the Reserve Bank of India (RBI) on inter-regulatory co-ordination for market development. Mr Sinha released the CII-India Ratings and Research report titled, ‘Indian Financial Markets: The Next Wave.’ The report highlights the importance of usage, monitoring and disclosure of covenants, improving regulatory coordination, and the use of technology and innovation by financial institutions as important ingredients in providing a fillip to the development of the financial markets. Mr Nimesh Kampani, Chairman, CII National Committee on Financial Markets, and Chairman, JM Financial Group, in his theme address, said the merger of the Forward Markets Commission (FMC) with SEBI has brought all commodities and securities under one umbrella. It should now be permitted for intermediaries to have commodities trading, in addition to equity, debt and forex (foreign exchange) derivatives in a single entity.This will surely pave the way for a well-regulated financial market for multiple products, he felt. The India International Exchange being set up by BSE at GIFT City will go on stream in two months and will provide an international platform for Indian companies to raise funds through various instruments, said Mr Ashishkumar Chauhan, MD and CEO, Bombay Stock Exchange (BSE). Mr Rakesh Valecha, Senior Director and Head – Credit & Market Research, India Ratings and Research Pvt Ltd, in a brief presentation on the theme, said the usage, monitoring and disclosure of covenants as an early warning signal will not only ensure efficient capital allocation, but also provide greater confidence to creditors and shareholders, in turn furthering the cause of financial markets. The Summit featured three sessions: • Funding India’s Industry through Capital Markets • GST - Impact on Financial Sector • Framing conducive policy and regulations for effective and efficient financial markets. SECTORSCAPE
  30. 30. Communiqué December 2016 | 37 C onsidering the focus of the Government to encourage manufacturing, create infrastructure, and build smart cities, mining activity in the country must go up substantially to support the desired growth with captive resources. The Global Mining Summit 2016, a signature event for the resource sector, was organized by CII concurrently with the International Mining & Machinery Exhibition (IMME) in Kolkata from 16-19 November. The Summit brought together Government policy-makers, mining professionals, technology providers, financing institutions, academia, geologists, environmentalists and consultants, to discuss the salience of mining towards reducing India’s metal imports, and the steps to be taken to promote exploration, discovery and mine development on a full cycle basis. Key points emerging from the deliberations: • Though India is blessed with abundant natural resources and has shared geology with Australia and Africa, the country is largely unexplored and accounts for only 0.5% of the world exploration budget. To give impetus to its growth, India must capitalize its own resource potential and become self-reliant in the resource sector. • To ensure that sufficient resources become available over the next two decades to feed the growing demand, there is a need for capex to now start flowing into exploration and development, given the risk and long gestation of the discovery, evaluation, engineering and permitting processes.The need of the hour is to provide a conducive environment that attracts investment from exploration companies, including foreign players. • The current auction system does not sufficiently encourage investment. The process does not adequately provide for risk – reward incentives associated with high-risk and highly capital-intensive exploration activity, with a long payback period. • To reduce the risk for explorers, a review of present laws is required to allow the monetization of explored assets with seamless transition from exploration to discovery to mine development. • It is equally important to rationalize and simplify taxes, cesses and duties, and provide an enabling fiscal regime to promote growth. Since timely execution is the key for any investment, the long drawn-out process for obtaining approvals and clearances must be simplified and expedited. • Finally, benchmarking with global best practices and implementing the learning would really open up the resource sector. Of course, the mining industry would need access to world-class technology and expertise and digitization of the complete exploration data base. All these steps from the Central Government would speed up the creation of an effective template, which can be handed over to the States. Dr Amit Mitra, Minister of Excise, Finance, Commerce, Industries, Industrial Reconstruction, and Public Enterprise, West Bengal; Peter Nicholls, Fellow – Perth USAsia Centre; S Bhattacharya, CMD, Coal India Ltd; Tom Albanese, Co-Chair, CII National Committee on Mining, and CEO, Vedanta Resources; Dr Sarat Kumar Acharya, Co-Chair, CII National Committee on Mining, and CMD, NLC India Ltd; Ratika Jain, Executive Director, CII; and V K Arora, Chairman, CII Mining & Construction Equipment Division, and Chief Mentor, Karam Chand Thapar & Bros (CS) Ltd, at the Global Mining Summit in Kolkata Global Mining Summit 2016 Mining Opportunities FOCUS mining
  31. 31. 38 | December 2016 Communiqué FOCUS V O I C E S ‘If properly harnessed, India’s mining sector can not only produce millions of jobs but can also be a significant contributor to national GDP.’ Dr Amit Mitra, Minister of Excise, Finance, Commerce, Industries Industrial Reconstruction, and Public Enterprise, West Bengal 'By April 2017, aerial survey on potential mineral blocks covering 2 lakh square kilometers of land would be over. This would be the G3 level of exploration data, to help prospecting on the ground.’ Balvinder Kumar, Secretary, Ministry of Mines 13th International Mining & Machinery Exhibition Since its inception in 1984, CII’s International Mining and Machinery Exhibition (IMME) has been growing steadily, to become the largest trade fair dedicated to mining in India. The 13th edition of IMME, held between 16-19 November in Kolkata, was a showcase for 292 exhibitors, including 88 exhibitors from overseas, featuring 8 country pavilions and individual exhibitors from 14 countries - Australia, Belarus, Belgium, China, Czech Republic, Finland, Germany, Indonesia, Italy, Poland, Russia, Spain, Turkey, UK and Ukraine. A key element of the event was the active participation from the Central Government, with support from the Ministries of Coal, of Mines, and of Steel, the Department of Heavy Industry, and Coal India Ltd, as well as participation from the State Governments of Odisha, Jharkhand and West Bengal. Australia, the ‘Partner Country,’ was represented by 14 companies and an 85-member delegation, highlighting the potential for mining synergies between the two nations. IMME 2016 and the Global Mining Summit were inaugurated by Dr Amit Mitra, Minister of Finance, Excise, Commerce & Industries, Public Enterprise, and Industrial Reconstruction, West Bengal; Mr Balvinder Kumar, Secretary, Ministry of Mines; Mr Tim Martin, Trade Commissioner, Australian Trade and Investment Commission; Mr Sarat Kumar Acharya, CMD, NLC India Ltd; Mr Tom Albanese, CEO, Vedanta Resources, and Mr Sutirtha Bhattacharya, CMD, Coal India Ltd. There was an impressive display in the outdoor exhibition area by global players including JCB, CAT, Volvo, VE Commercials, Tata Hitachi, Mahindra, Sany, Leeboy, SREI Finance, Dozco, Voltas, Sandvik, Atlas Copco, ABB, Puzzolana, Joy Global, L&T - Komatsu, BEML, FLSmidth, BKT, NLMK (Europe), MMD Heavy, Aeolus Tyres, and others, with live demonstrations of equipment and machinery. ‘I welcome all to come forward and join hands with Jharkhand for numerous o p p o r t u n i t i e s . T h e Government of Jharkhand is working to re-organize its mining sector to attract more investments, and has introduced transparency and ease of doing business.’ Sunil Kumar Barnwal, Secretary, Industry, Mines and Geology, Jharkhand Dr Sarat Kumar Acharya, Co-Chair, CII National Committee on Mining, and CMD, NLC India Ltd; Tom Albanese, Co-Chair, CII National Committee on Mining, and CEO, Vedanta Resources; Tim Martin, Trade Commissioner of Australia; Balvinder Kumar, Secretary, Ministry of Mines; and V K Arora, Chairman, CII Mining & Construction Equipment Division, and Chief Mentor, Karam Chand Thapar & Bros (CS) Ltd, inaugurating IMME 2016 in Kolkata