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CII Communique February 2017

Cover story: Building Partnerships for Sustained Growth The Partnership Summit celebrated the rise of India as a global growth engine, while outlining a roadmap of the nation's ‘global integration strategy’ in the new world economic order.
Our cover story showcases the mega-event which witnessed the active engagement and collaboration of India within, and with the rest of the world.
Spotlight: India@75 National Volunteering Week focus.
Showcasing Engineering and Technological Excellence
Mindspace: Union Budget 2017-18
Societal Interface: Towards Inclusion of Persons with Disabilities engaging with the world CII@DAVOS 2017 plus... Building Capacity portfolio for excellence REGIONAL REVIEW ... AND MORE

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CII Communique February 2017

  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 Contents Volume 39  No. 02  February 2017 cover story 07 Building Partnerships for Sustained Growth The Partnership Summit celebrated the rise of India as a global growth engine, while outlining a roadmap of the nation's ‘global integration strategy’ in the new world economic order. Our cover story showcases the mega-event which witnessed the active engagement and collaboration of India within, and with the rest of the world. spotlight 03 India@75 National Volunteering Week focus 17 Showcasing Engineering and Technological Excellence mindspace 21 Union Budget 2017-18 Societal Interface 34 Towards Inclusion of Persons with Disabilities engaging with the world 37 CII@DAVOS 2017 plus... Building Capacity portfolio for excellence REGIONAL REVIEW ... AND MORE
  2. 2.      Communiqué February 2017  |  3 spotlight T he India@75 Foundation, an initiative symbolizing the developmental agenda of CII, organized the 4th edition of the National Volunteering Week (NVW) from 18 to 24 January. The Week celebrated volunteerism with more than 1700 activities across 72 cities and 1401 villages. India@75 directly, and through partners, reached out to approximately 13 lakh people, mobilizing 1.5 lakh volunteers, and generated 2.5 lakh volunteering hours. In the coming year, the target is to reach out to 50,000 villages and 100 cities. India@75 and CII have been working towards the vision of creating an inclusive, developed India by 2022. The vision elements comprise skills, education, economy, urbanization and environmental sustainability, agriculture and health, innovation, moral leadership, and more. Technology and volunteerism have been identified as the key drivers cutting across the vision elements, to make the exercise participative and collaborative. These drivers would also enable outreach and scale within the time constraints, to achieve the envisioned objectives by the completion of 75 years of India's Independence. India@75 National Volunteering Week
  3. 3. 4  |  February 2017 Communiqué spotlight CII and India@75 have been celebrating Volunteering Week since January 2014 in an endeavor to aggregate the on-going efforts of the stakeholders in the volunteering space, and facilitate synergy and alignment to augment Government initiatives, by ensuring impactful delivery of the various social developmental initiatives and schemes at the grass roots. The week-long activities comprised programs for meal distribution, road safety, swachhta abhiyaan, tree plantation, health and hygiene, etc, with an emphasis on education and functional literacy. Individuals, community organizations, youth associations, homemakers, and retired and active professionals representing all segments of society, pan-India, engaged in these programs.Corporate and non-profit partners enabled the outreach and execution of activities even in far-flung remote areas. Public consensus is being generated for the declaration of an Indian National Volunteer Day /Week similar to the UN Volunteer Day on 5 December, and National Youth Day on 12 January. Also, traction is building up emphasizing the need for a national policy on volunteerism with a structured eco-system. This would enable the engagement of Indians of different ages, genders and professions, as well as the stakeholders, for impactful and tangible delivery, contributing towards nation-building efforts through participative and collaborative action by the citizens. India@75 is also working on a niche area of volunteering under its Pro Bono initiative; wherein it connects skilled corporate volunteers to non-profits through an IT platform, for building their intrinsic capacities. This endeavor has the larger objective of creating long term sustainable relationships between corporates and non- profits, thus moving beyond mere funding. The week-long celebrations of NVW 2017 concluded with a conclave on ‘Volunteerism: Key Enabler for Nation Building’ in New Delhi on 24 January. In his keynote address, Mr Vijay Goel, Minister of State (Independent Charge) of Youth Affairs and Sports, while welcoming the National Volunteering Week initiative, urged India@75 to “try and sustain volunteering beyond the National Volunteering Week and undertake activities that would have a long term impact on the ground.” Distinguished panelists like Mr Shankar Venkateshwaran, Chief, Tata Sustainability, Mr Anshu Gupta, Founder, Goonj, Dr DineshTyagi, CEO, CSC E-Governance Services, Mr Shrikant Sinha, CEO, NASSCOM Foundation, and Mr Nishant Pandey, Country Director, American India Foundation, amongst others, called for a structured eco-system for volunteering. The event was attended by various NGOs, corporates and young volunteers.
  4. 4.      Communiqué February 2017  |  7 A s countries across the world are gearing up to keep pace with the shifting dynamics in the world order, innovation and adaptation are setting the tone for ‘NeoGen’ prescriptions for successful and sustainable partnerships. Global headwinds notwithstanding, developing Asia continues to contribute 60% of world growth, and is steadily becoming the crucible for innovative economic and geopolitical partnerships. China and India, two of the region’s largest economies, are showing Building Partnerships for Sustained Growth COVER STORY india and the world The Partnership Summit celebrated the rise of India as a global growth engine, while outlining a roadmap of the nation's ‘global integration strategy’ in the new world economic order. Our cover story showcases the mega-event which witnessed the active engagement and collaboration of India within, and with the rest of the world, through stimulating discussions between the key stakeholders – policy-makers, institutions, businesses, media and academia. Ministers and Industry leaders at the lamp-lighting ceremony to inaugurate the Partnership Summit in Visakhapatnam
  5. 5. 8  |  February 2017 Communiqué Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall; Ramesh Abhishek, Secretary, DIPP; Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce & Industry; Arun Jaitley, Minister of Finance, and of Corporate Affairs; N Chandrababu Naidu, Chief Minister of Andhra Pradesh; M Venkaiah Naidu, Minister of Urban Development, Housing, and Urban Poverty Alleviation, and Information & Broadcasting; Ashok Gajapathi Raju Pusapati, Minister of Civil Aviation; Y S Chowdary, Minister of State of Science & Technology, and Earth Sciences; Kumar Mangalam Birla, Chairman, Aditya Birla Group; Shobana Kamineni, President Designate, CII, and Executive Vice Chairperson, Apollo Hospitals Enterprise Ltd, and Satya Prakash Tucker, Chief Secretary, Andhra Pradesh, at the Inaugural Session of the Partnership Summit in Visakhapatnam economic resilience. While Indonesia and Philippines are ramping up investments, Vietnam is sustaining expansion, and Thailand is gathering momentum. According to the Asian Development Bank, in 2016, Asian economies grew at about 5.6%, on the back of China’s transition to a consumption and services-led economy, and the on-going structural reforms in India. Emerging markets in Latin America too are at an advantage due to their huge domestic consumer base. The year 2016 was a defining period for an emerging world order, with events such as Brexit, the US Presidential elections, and the civil war in Syria, as well as momentous natural disasters, leading to global economic and geopolitical churn. While creating an environment of instability, these events have also thrown open new opportunities for growth. Interestingly, the year also marked some key developments in the world’s progress towards collaboration for sustainable growth and development. • In the biggest coming-together of nations on common ground, the Global Climate Change Pact negotiated in Paris in 2015 was ratified by 118 of the 194 nations, triggering new commitments to combat global warming. • For the first time, the B20/G20 Summit focused on global economic development rather than that of the G20 nations alone. The Hangzhou Consensus signed by G20 members at the Summit called for a comprehensive and integrated narrative for strong, sustainable, balanced and inclusive growth. • The World Bank’s latest review report reveals that in 2016, a coalition of 60 governments, of both developed and developing countries, committed a record $75 billion towards the World Bank’s fund for the poorest nations. • Building upon the September 2015 acceptance of the Sustainable Development Goals (SDGs), various nations reiterated their commitment towards the achievement of the UN Agenda 2030 SDGs. • New technologies and techniques are giving rise to re- shoring activities, and global value chains have become a dominant feature of world trade, encompassing developing, emerging, and developed economies. The inter-dependence of advanced and emerging economies is undeniable. In a global landscape with several transformative forces at work, new economic, technological, environmental and social challenges are emerging. These challenges are transnational, and call for collective solutions and global collaborations. Today, efforts are being made to promote inclusiveness, with fiscal and monetary policies and structures that maximize synergies and cooperation amongst nations. In these exciting and transformative times, India stands at the cusp of growth. With 7.6% GDP growth in 2015-16, over $2 trillion GDP in nominal terms, and an expected 869 million labor force by 2020, India can lead global economic and trade growth. The Indian Government has taken several initiatives to improve the country’s attractiveness as an investment destination as well as a business partner. India has moved up 12 notches in the World Bank's Ease of Doing Business rankings in the last two years. Strong COVER STORY
  6. 6.      Communiqué February 2017  |  9 moves such as demonetization have paved the way for a stronger economy, which is expected to continue to grow at 7% in the next fiscal. India’s new foreign trade policy, international visits by the Prime Minister and engagement with developed nations, a successful push for membership of the RCEP, and trade agreements with the ASEAN nations, symbolize India’s renewed thrust towards global integration. A recent UN study highlights that India’s growth will be underpinned by accelerated infrastructure spending and measures to create a better investment climate. The Goods and Services Tax (GST) Constitutional Amendment Bill has cleared the way for the implementation of a uniform indirect tax regime in the country, while the Bankruptcy Code has replaced numerous archaic legislations with a modern contemporary law, allowing easy exit to companies. The consistent convergence of Government and industry efforts for an enabling ecosystem as well as efficient governance can enhance India’s competitiveness. It is now India’s moment of truth to forge a path to progress that has never been explored before, encompassing both economic growth and environmental sustainability. Indeed, with 'Partnerships, to catalyze global solidarity for sustainable development,' listed by the UN as one of the 5 Ps of its anti-poverty campaign, along with Prosperity, People, Planet, and Peace, CII's Partnership Summit assumes even greater relevance today. COVER STORY T he India opportunity was effectively highlighted at Visakhapatnam, with the convergence of over 2000 delegates from 51 countries on 27-28 January for CII’s prestigious Partnership Summit. This year, the Government of Andhra Pradesh was the Host State Partner for the annual flagship event, organized by CII in association with the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry. The Summit is a unique platform for close examination of the partnerships and synergies to spark the next phase of global growth, and to develop strong multi-country linkages and networks. Initiated in 1995 to commemorate CII’s centenary year, the event, with over two decades of active engagement and collaboration of India at a global level, attracts around 2000 delegates every year with over 40% participation from overseas. The theme for this year’s Summit was ‘Partnerships for Shared New Realities.' Over the years, global economic rebalancing has taken a definitive shift towards Asia and the emerging economies. Today the G20 nations together represent 85% of global output. And China and India continue to create an economic buzz in a milieu where the developed world clocked in a low 2.5% growth. Three key directional shifts are powering India’s growth, said Mr Arun Jaitley, Minister of Finance, and of Corporate Affairs, inaugurating the Partnership Summit. These are the JAM trinity (Jan Dhan Yojana, Aadhar, Mobile), the Goods and Services Tax (GST), and Demonetization, he said. While the JAM trinity would Partnerships for Shared New Realities
  7. 7. 10  |  February 2017 Communiqué COVER STORY help promote financial inclusion in the country, the GST, he explained, would make India one large market and would go a long way in making doing business in India much easier. Demonetization, he said, has helped make the economy much more compliant. Mr Jaitley pointed out that the formal economy was expanding at a rapid pace now, and this would lead to much more revenue for the Government. The Finance Minister stated that the Center has a vested interest in the progress of Andhra Pradesh, whose GDP, he said, is likely to grow ahead of the national GDP. Commending the State Government for making Andhra Pradesh the easiest place to do business, Mr Jaitley said that a large number of central institutions have been established in the State over the last 2.5 years, to help it overcome the challenges of its bifurcation. Mr N Chandrababu Naidu, Chief Minister of Andhra Pradesh, invited businesses from India and abroad to invest in the State. With Gross State Domestic Product growth consistently out-performing the national average to clock 10.99% this year, vis-a-vis India's overall 7.5% GDP growth, the target is to touch 15% growth next year, he declared. The mantra of the Government is ‘Reform, Perform and Transform,’ stated Mr M Venkaiah Naidu, Minister of Urban Development, Housing and Urban Poverty Alleviation, and Information and Broadcasting. The entire effort is to transform India and bring about inclusive growth, he said, sharing that his Ministry is taking measures to bring down the time taken to obtain construction permits from over a year to just 60 days. The Smart Cities Mission has led to an urban renaissance, and there is a new-found enthusiasm to improve urban conditions, he said. Ms Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce and Industry, observed that even though the overall global economic scenario is not very bright, there is a lot of vibrancy in the Indian economy, which is growing at over 7%, and has the potential to grow faster. Many systemic reforms are being undertaken, such as banking sector reforms, and GST, among others, she said. Mr Ramesh Abhishek, Secretary, DIPP, pointed out that the States are now competing with each other to improve the ease of doing business. They are learning Partnership Summit at a Glance Domestic Delegates 2000 Overseas Delegates 400 Foreign Participation 50 countries Overseas Trade & Commerce Ministers and Officials 7 MoUs Signed 665 Investments Pledged `10,54,590 crores Potential Job Creation 22.3 lakh from each others’ experiences. The Government is steadfastly promoting cooperative federalism, thereby galvanizing the growth potential of the State economies. Even regulators are taking a re-look at their processes, and reforming them, he said. A slew of positive policy steps has contributed to the country receiving $144 billion of foreign direct investments in the last 2.5 years, he added. Mr S P Tucker, Chief Secretary, Andhra Pradesh, said reforms are being undertaken for the State to sustain double digit growth for the next 10-15 years. The State Government is working near real time to review investment proposals: in 2016-17 alone, projects worth `1,17,000 crores gained traction in the State, he said. The sustained development of the economies of India's States will help the country continue to be one of the 10-best performing economies in the world over the next 25 years, said Dr Naushad Forbes, President, CII, and Co- Chairman, Forbes Marshall. One of India's key strengths is that 2/3rd of its growth comes from domestic consumption. At a time when many countries in the world are increasingly looking inwards, India and China are now the key advocates of free trade. The mantle of leadership is shifting, he said. Mr Kumar Mangalam Birla, CMD, Aditya Birla Group, stated that his Group has already invested `10,000 crores in Andhra Pradesh, and expects to invest `7,000 crores more over the next two years to expand their existing facilities. Mr Baba Kalyani, CMD, Bharat Forge Ltd, announced that his Group is investing `30,000 crores in a facility in Nellore, construction for which would begin very soon. Describing the Summit as “most constructive and productive,” Mr Chandrajit Banerjee, Director General, CII, expressed confidence that many of the international delegates present, who had so far not factored India into their growth models, would now be assessing the country's potential, and coming out with lucrative new investments. The participation of leaders and delegations from so many countries, and their interest in India is very heartening and encouraging, said Ms Shobana Kamineni, President Designate, CII, and Executive Vice Chairperson, Apollo Hospitals Enterprise Ltd, in her concluding remarks.
  8. 8.      Communiqué February 2017  |  11 COVER STORY Andhra Pradesh: Sunrise State A t the special plenary session on ‘Celebrating Sunrise Andhra Pradesh: Ready for the World, Ready for the Future,’ leaders from Government and industry shared how, with development on the fast-track since 2015, Andhra Pradesh has emerged as the fastest-growing State in India, with 10.99% GSDP growth in 2015-16. In his keynote address, Mr N Chandrababu Naidu, Chief Minister of Andhra Pradesh, laid out his Vision 2050 – to make Andhra Pradesh the leading global investment destination. “Sustainable development of a region is possible when happiness is considered as an index of growth. Therefore my Government is working for the overall development of our people. This includes providing health security for the disabled, home security for all citizens, and fodder security for people with livestock," he said, adding that the State is taking the United Nations Sustainable Development Goals as a benchmark and is diligently working towards them. “We have embarked on a journey of consistent double digit growth, and are confident of emerging as a developed State by 2029. Andhra Pradesh has been rated as the top State in the country for 'Ease of Doing Business' by the World Bank and the Government of India, up from the 2nd position the previous year. This is a reflection of our continued commitment to provide best-in-class policies, stable industrial relations, and an investor-friendly business environment," said Mr Naidu. In terms of investment, Andhra Pradesh is aiming at `7-8 lakh crores in the year 2018. Of the 328 MoUs signed at the last Partnership Summit, also held in Visakhapatnam in 2016, 50% have already translated into projects. Investments of `2,82,715 crores have come into the State in the last one year, he added. Solomon Arokia Raj, Secretary, Industries & Commerce, Andhra Pradesh; Ashok Gajapathi Raju Pusapati; Suresh Prabhu, Minister of Railways; N Chandrababu Naidu; Dharmendra Pradhan, Minister of State (Independent Charge) of Petroleum & Natural Gas; Dr Subhash Chandra, Chairman, Essel Group; Tulsi Tanti, Chairman, Suzlon Energy, and Chandrajit Banerjee, Director General, CII   BYTES ‘GST will bring a revolution in the way businesses are done, and investments are made in India.To successfully implement the Central Government’s vision, all State Governments need to cooperate with the private sector, neighboring States, technology providers, and also the rest of the world.’ Suresh Prabhu, Minister of Railways 'Availability of land plays a major in the development of the aviation sector, and Andhra Pradesh has readily agreed to provide land for the further development of this sector.’ Ashok Gajapathi Raju Pusapati, Minister of Civil Aviation ‘The Government is committed to taking all necessary steps for improving the ease of doing business in India. The total FDI inflow in the last 2.5 years has touched $130 billion, the highest-ever recorded in India. This has been possible due to the cooperation and robust performance of States like Andhra Pradesh, which are striving to build quality infrastructure and create a conducive business environment.’ Dharmendra Pradhan, Minister of State (Independent Charge) of Petroleum and Natural Gas ‘Availability of land, power, water, IT connectivity, favorable policies, skilled manpower, sustainable leadership and good governance contribute to the development of the economy of a region. The Government of Andhra Pradesh is proactive in providing investors with all these requirements.’ G M Rao, Group Chairman, GMR Group
  9. 9. 12  |  February 2017 Communiqué CII-Government of Andhra Pradesh MoU CII inked an MoU with the Government of Andhra Pradesh for developing Amaravati as a model green and smart city, d u r i n g t h e P a r t n e r s h i p Summit 2017. The activities proposed under the MoU include capacity-building and training programs for engineers, architects and developers; enabling investments and entrepreneurs in green buildings and green cities; and facilitating in implementing and achieving Indian Green Building Council (IGBC) green ratings for upcoming buildings in Amaravati, and for Amaravati city as a whole. The MoU was exchanged by Dr Sreedhar Cherukuri, Commissioner, Andhra Pradesh Capital Region Development Authority and Capital Area, and Mr S Raghupathy, Deputy Director General, CII, in the presence of Mr N Chandrababu Naidu, Chief Minister of Andhra Pradesh, on 28 January, in Visakhapatnam. COVER STORY At the exchange of the CII-Government of Andhra Pradesh MoU, in Visakhapatnam ‘An MoU was signed in 2016 during the first Sunrise Andhra Pradesh Investment Meet for setting up an industrial park with an investment of $11 billion, and today there has been substantial progress in implementing the project. This year, the Essel Group has signed an MoU worth `5,000 crores for developing smart cities.’ Subhash Chandra, Chairman, Essel Group ‘Chief Minister N Chandrababu Naidu’s dynamic vision of making Andhra Pradesh not just an energy surplus state but also a green energy state has led to the development of many renewable and alternate energy initiatives. These include the installation of 60% of India’s LED installation for energy conservation, linking the Godavari and Krishna rivers to provide clean drinking water and meet the needs of farmers, connecting the entire State with fiber optics, and plans of developing Amaravati as a world class city. By developing tailor- made policies for investors, Andhra Pradesh is at the forefront of development.’ Tulsi Tanti, Chairman, Suzlon Energy ‘The determination and the dynamism of the State Government in encouraging innovative projects is making Andhra Pradesh a promising State for investment.’ Chandrajit Banerjee, Director General, CII US-India Relations under the New Regime A  panel discussion on ‘India-US Relations: What does the New Administration Have in Store?’ with notable speakers such as Dr C Raja Mohan, Director, Carnegie India; Mr B V R Mohan Reddy, Executive Chairman, Cyient Ltd; Ms Lisa Curtis, Senior Research Fellow, Asian Studies Center, Davis Institute for National Security and Foreign Policy, The Heritage Foundation; and Mr Kartikeya Singh, Deputy Director and Fellow, Wadhwani Chair of US-India Policy Studies, Center for Strategic and International Studies, (CSIS), was held during the Partnership Summit. The topics discussed included the US withdrawal from the TPP, the impact of President Trump’s ‘Hire America’ platform on H1-B workers, and India’s continued partnership with the US in defence, counter-terrorism, nuclear non-proliferation and energy. While examining the previous assumptions held by India in its relationship with the US, the speakers’ consensus was that the election of Mr Donald Trump to the American presidency offered more opportunities than challenges. Kartikeya Singh, Deputy Director and Fellow, Wadhwani Chair in US-India Policy Studies, CSIS; Lisa Curtis, Senior Research Fellow, Asian Studies Center, Davis Institute for National Security and Foreign Policy, The Heritage Foundation, USA; C Raja Mohan, Director, Carnegie India, and B V R Mohan Reddy, Executive Chairman, Cyient Ltd
  10. 10.      Communiqué February 2017  |  13 Building International Partnerships 'Hydel-power could be a game-changer for Nepal. The Himalayan country has the potential for 100,000-300,000MW of hydel power, which will change the energy scenario in the region. Investments from India and other countries can help leverage the huge potential in hydel power and other environmentally-friendly industries.' Romi Gauchan Thakali, Minister of Commerce, Nepal 'India has become a locomotive for growth in the world. Events like the Partnership Summit have become influential platforms for driving trade and investment, and should be encouraged.' Stepan Kubiv, First Vice-Prime Minister, and Minister of Economic Development and Trade, Ukraine 'The UAE is a strong believer in India’s growth story. India is a 'miracle’ in the way it has embraced so many diverse groups but still remains united and strong. The 21st century will be Asia’s century, and the UAE will ensure that it is a part of this economic growth.The UAE-India relationship is being remodeled by Prime Minister Modi into a special one.’ Sultan Bin Saeed Al Mansoori, Minister of Economy, UAE 'While the rise of India and Asia is commendable, there is huge potential in Africa too, especially in agriculture, mining, manufacturing, infrastructure and forestry. Africa is open for business. We need South-South cooperation, and developing countries need to ensure their interests in an equitable and fair ecosystem for trade and investment.’ C I Mabuwa, Deputy Minister of Industry and Commerce, Zimbabwe COVER STORY C I Mabuwa, Deputy Minister of Industry & Commerce, Zimbabwe; Tofail Ahmed, Minister of Commerce, Bangladesh; Nirmala Sitharaman; Stepan Kubiv, First Vice-Prime Minister and Minister of Economic Development & Trade, Ukraine; Dr Naushad Forbes; Sultan Bin Saeed Al Mansoori, Minister of Economy, United Arab Emirates, and Romi Gauchan Thakali, Minister of Commerce, Nepal T he challenges for sustained economic and trade growth are transnational, and call for collective solutions. Ms Nirmala Sitharaman, Summit Chair, and Minister of State (Independent Charge) of Commerce and Industry, engaged with Trade Ministers and officials from the UAE, Bangladesh, Nepal, Ukraine, and Zimbabwe, to explore how developing countries could take the lead towards achieving sustained economic and trade growth. The emerging markets or the developing economies “are no more just developing, but are the new engines of growth which are pulling the world along,” said Ms Nirmala Sitharaman. Be it IT, ITeS, agriculture, the pharmaceutical sector or the knowledge economy, countries like India are showing the world the way forward, she said, pointing to areas like bulk- drug manufacturing where Indian companies are leading in low-cost pharmaceutical manufacturing, setting the benchmarks for even the developed world. BYTES 'Bangladesh, like India, is growing at a fast pace and has achieved 7.1% GDP, while maintaining over 6% growth in the last ten years. The country is working closely with India, China and Myanmar to bring the regional economic corridor to completion. With the thrust on rapid growth, Bangladesh is billed to earn $50 billion in readymade garments exports alone.' Tofail Ahmed, Minister of Commerce, Bangladesh
  11. 11. 14  |  February 2017 Communiqué Partnerships for Sustainable Development The Sustainable Development Goals (SDGs) are a set of 17 specific goals offering special focus on important areas related to sustainable development, that require urgent and extensive attention from governments. While the Government of India has implemented many programs to bring improvement in the quality of life in rural areas through employment generation, development of rural infrastructure, and provision of other basic amenities, it still needs to identify gaps and prepare an implementation framework to meet the major SDG goals. India is also emerging as a development partner for countries in Asia and Africa with a wide aid and growth agenda. This session explored the environment for nurturing the SDGs and the COP22. The Happiness Index made its way into the discussions as one of the main parameters for countries to keep on the radar to achieve the SDGs. For this subject of global import, the panelists included Ms Arancha Gonzalez, Executive Director, International Trade Centre, Switzerland; Dr Frank-Jurgen Richter, Chairman, Horasis, Switzerland, and Mr Geoffrey Clements, Chairman, The Commonwealth Association for Infrastructure Development, United Kingdom, Mr Chrys Fernandes, Regional Commercial Leader – India, SE Asia & Pacific, Dow Chemicals, Mr Ramesh Kymal, Co-chair, CII Committee on Renewable Energy, and MD, Gamesa Wind Turbines Pvt Ltd.   BYTES ‘Ideally, cities should partner with businesses to develop cost-effective and energy-efficient technologies.’ Chrys Fernandes, Regional Commercial Leader – India, SE Asia & Pacific, Dow Chemicals Plenary Sessions COVER STORY Dr Frank-Jürgen Richter, Chairman, Horasis, Switzerland; Ramesh Kymal, Co-chair, CII Committee on Renewable Energy, and MD, Gamesa Wind Turbines Pvt Ltd; Arancha Gonzalez, Executive Director, International Trade Centre, Switzerland; Pranjal Sharma, Economic Analyst & Writer; Geoffrey Clements, Chairman, CIID, United Kingdom, and Chrys Fernandes, Regional Commercial Leader – India, SE Asia & Pacific, Dow Chemicals ‘India had taken the lead in renewables in the 1990s, but had then fallen off course. Only lately has it picked up steam again. The country has set an ambitious goal of generating renewable energies of 175 GW by 2022.’ Ramesh Kymal, Co-chair, CII Committee on Renewable Energy, and MD, Gamesa Wind Turbines Pvt Ltd Global Financial Architecture The global financial system has still not fully recovered from the 2008 financial crisis. While there is a need to develop a comprehensive regulatory framework to prevent such crisis in the future, the world's financial system needs to be resilient enough to support global investment dynamics and infrastructure financing. Underlining the importance of strengthening the safety net for global financial stability, Mr Subir Gokarn, ExecutiveDirector,InternationalMonetaryFund,USA,saidthe safety net is linked to three key components – self-insurance of individual economies by way of their respective forex reserves,regionalfinancialarrangements,andtheIMF’sglobal safety net. The panelists conclusively agreed that investments in infrastructure are the key to ensuring the resilience of the economy, if innovative financial instruments can be developed that could be of interest to investors.   BYTES ‘As the interest rates come down, it would be necessary to develop innovative financial instruments to attract investors. Moreover, as the country looks to develop 100 smart cities, a certain balance between utilizing domestic savings and foreign investments will have to be arrived at.’ Nimesh Kampani, Chairman, CII National Committee on Financial Markets, and Chairman, JM Financial Group
  12. 12.      Communiqué February 2017  |  15 ‘The Government is now focused upon electrifying the last 6,000 villages.’ P V Ramesh, CMD, Rural Electrification Corporation Ltd Industry 4.0 We are at the dawn of the 4th Industrial Revolution, integrating the digital and manufacturing worlds. Technologies such as big data and analytics, autonomous robots, simulations, horizontal and vertical system integration, the industrial Internet ofThings, cyber security, the cloud, additive manufacturing, and augmented reality are transforming the manufacturing landscape. India’s ambitious ‘Make in India’ initiative envisages a 25% share of manufacturing in the nation’s GDP from the current 17%. The deliberations explored how India can and should embrace Industry 4.0 for sustained growth in the emerging global economic order. Innovation would help India move forward on its mission of digitization of the manufacturing sector, it was suggested, with the focus on employment generation, especially in renewable energy, SMEs, and manufacturing. In this transformative process, industry will also have to deal with challenges related to working capital needs, financing of manufacturing business and inventory management.   BYTES ‘Digitization of the manufacturing sector and the integration of digital technologies are the need of the hour.To save existing jobs and create new ones it is important for both Government and industry to look at the existing industrial scenario and work towards reviving and reconstructing the industries that are lagging behind. ‘Go Rural, Go Green, Go Global’ should be the motto for new innovations.’ Y S Chowdary, Minister of State of Science & Technology, and Earth Science 'Automation has facilitated the remote operation of mining activities in Western Australia. Using Big Data and predictive maintenance, industry there has been able to significantly increase productivity levels, making Western Australia the number one destination for global investments in the mining business. Western Australia has signed an MoU with the Government of Andhra Pradesh for developing a mining university, and for skill development for mining industries.' Stephen Wood, Director General, Department of State Development, Western Australia ‘India is a hub of knowledge and technology and has the capability to produce outstanding results in global markets. Information technology, automotives, manufacturing and pharma will be the key drivers of India’s future’ Rafael Escalona Reynoso, Lead Researcher – Global Innovation Index, Cornell College of Business, USA 'Some $2 trillion capex is needed in India’s manufacturing sector over the next 10 years for the sector to gain 25% share of national GDP. Mass customization, as opposed to mass standardization, will define the contours of Indian manufacturing in the coming years.’ Sunil Mathur, MD & CEO, Siemens Ltd COVER STORY Nirvikar Jain, Chief Representative-India Office, First Gulf Bank; Dr Subir Gokarn, Executive Director, IMF, USA; Nimesh Kampani, Chairman, CII National Committee on Financial Markets, and Chairman, JM Financial Group; S V Muralidhar Rao, Executive Director, SEBI; and P V Ramesh, CMD, Rural Electrification Corporation Ltd Rafael Escalona Reynoso, Lead Researcher- Global Innovation Index, Cornell College of Business, USA; Ramesh Datla, CMD, Elico Ltd; Y S Chowdary; Ramesh Abhishek; Stephen Wood, Director General, Department of State Development, Western Australia; Sunil Mathur, MD & CEO, Siemens Ltd, and Srini Srinivasan, MD, Hospira Healthcare Pvt Ltd
  13. 13. 16  |  February 2017 Communiqué ‘The challenge in ushering in Industry 4.0 is about creating a circular economy. All pieces of industry, including SMEs, need to be transformed. Job creation is very important. The skilling initiatives that support the Industry 4.0 drive should address the issue of job mis- allocation too.’ R Mukundan, MD, Tata Chemicals ‘We need to define Industry 4.0 in relation to the SME sector. This calls for developing the right standards for small enterprises and ensuring their adherence, promoting innovation for value-addition in manufacturing, increasing interaction between industry and research institutions, developing centers of excellence, building smart factories, and enabling skill development.’ Ramesh Datla, Chairman, CII Southern Region, and CMD, Elico Ltd, ‘Industry 4.0 is critical for the Indian pharma industry to increase its share of the global market. Today 2/5 of all medicines consumed globally are manufactured in India. The challenge is to consistently meet the quality standards laid down by pharma regulators around the globe, which can be achieved through Industry 4.0.’ Srini Srinivasan, MD, Hospira Healthcare Ltd ‘Skill development programs should be aligned with the goal of creating smart jobs. The GST should perhaps provision for encouragement of adoption of green technologies for manufacturing.’ Jalaj Ashwin Dani, President – HR, Supply Chain & Chemicals, Asian Paints Ltd Industrial Corridors India is developing industrial and transportation corridors in a big way. The projects involve creating efficient transport facilities and manufacturing infrastructure. The Government’s initiatives in developing five industrial and economic corridors, linking Delhi-Mumbai, Bengaluru- Mumbai, Chennai-Bengaluru, Visakhapatnam-Chennai, and Amritsar-Kolkata, will create a whole new map for Indian industrial networks. Various infrastructure projects like development of roads, drainage, sewage, potable water, water treatment, sewage treatment plants, logistics networks, et al are being developed to unleash greater connectivity as well as provide impetus to the success of the ‘Make in India’ campaign. COVER STORY Alkesh Sharma, CEO, DMICDC; M T Krishna Babu, Chairman, Visakhapatnam Port Trust; Nitin Gadkari, Minister of Road Transport & Highways, and Shipping, and N Chandrababu Naidu   BYTES ‘Developing sustainable infrastructure in the country remains the highest priority of the Government. Visakhapatnam is an arterial port connecting many manufacturing hubs and industrial clusters, and the Government has invested over `6,000 crores for its development. To reduce the logistics costs within the country, the Government has taken up the development of coastal economic zones through the Sagar Mala Project. This project is expected to bring in investments of over `8 lakh crores and generate a huge number of jobs. Initiatives are being taken to connect inland waterways with ports.’ Nitin Gadkari, Minister of Road Transport and Highways, and Shipping ‘India’s GDP will grow if there is focus on creating employment opportunities for the youth, developing an export model economy, and working towards sustainable growth.The Government of India’s initiatives of developing industrial corridors will further these goals.’ Alkesh Sharma, CEO, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) 'The Asian Development Bank has approved a $ 631 million loan for building India’s first coastal industrial corridor, between Visakhapatnam and Chennai. This corridor is expected to boost development on the eastern coast of India and enable seamless trade links with South-east and South Asia.’ Johanna Boatel, Principal Economist, Asian Development Bank ‘The logistics cost in India is way too high compared to developed countries. Therefore the focus of both the Central and State Government on developing better rail, roads, inland waterways and air facilities is critical. Investors always look for availability of land, power and basic amenities before going ahead with their projects.’ M T Krishna Babu, Chairman, Visakhapatnam Port Trust
  14. 14.      Communiqué February 2017  |  17 T he 22nd International Engineering & Technology Fair (IETF) 2017, a flagship event of CII, held in New Delhi from 2-4 February, once again served as a unique platform for entrepreneurs, businesses, policy-makers and innovators, to showcase their products and services to take Indian industry to the next level of growth. Mr Anant Geete, Minister of Heavy Industry and Public Enterprises, inaugurated IETF 2017 in a ceremony attended by top industry players and stakeholders from various sectors. The focus was on future technologies for eight industrial sectors - Green Mobility, Industrial Automation, Logistics, Metal and Metallurgy, Real Estate and Building Technology, Water, Waste and Recycling, and Welding and Joining Technologies. Showcasing Engineering and Technological Excellence FOCUS event Shubhra Singh, Executive Director, ITPO; Rumjhum Chatterjee, Chairperson, CII (NR), and Group MD, Feedback Infra Pvt Ltd; Sumit Muzumder, Past President, CII, Chairman, CII National Committee on Integrity & Transparency in Governance, and CMD, TIL Ltd; Anant Geete, Minister of Heavy Industries & Public Enterprises; Kenji Hiramatsu, Ambassador of Japan; Deep Kapuria, Chairman, CII Trade Fair Council, and Chairman, The Hi-Tech Gears Ltd, and Hideki Okamura, Chairman, Computer Entertainment Suppliers Association, Japan, at IETF 2017 in New Delhi Faggan Singh Kulaste, Minister of State of Health & Family Welfare, and Shobana Kamineni, President Designate, CII, and Executive Vice-Chairperson, Apollo Hospitals Enterprise Ltd, at Health Tech India P P Chaudhary, Minister of State of Law & Justice, and Electronics & IT, at the Conference on Indian Gaming Industry Piyush Goyal, Minister of State (Independent Charge) of Mines, Power, Coal, and New & Renewable Energy, and T V Narendran, Chairman, IETF Metals & Metallurgy Steering Committee, Chairman, CII (ER), and MD, Tata Steel Ltd, at the Conference on Metal & Metallurgy Anant Geete with Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall, and Chandrajit Banerjee, Director General, CII
  15. 15. 18  |  February 2017 Communiqué The first-ever international gaming and animation show in India, the India Gaming Show 2017, was held concurrently with IETF from 2-5 February, with the participation of as many as 90 companies from 12 countries. Japan was the partner country, while Korea was the guest country and the UK the focus country, for the maiden edition of the Gaming Show, which was backed by the Ministry of Electronics and Information Technology. Among other countries, Germany, USA and Poland brought their best gaming companies to the show. Some of the leading brands included J-Lop, Sega, Konami, Square Enix, Sony India, Samsung and Asus. Indian gaming start-ups also showcased their potential to compete in the international market, and participated in the show to attract potential collaborators and gain exposure to the latest gaming technologies. With over 70 million gamers in the country, the Indian gaming market is pegged at $890 million. The India Gaming Show 2017 was inaugurated by Mr PP Choudhary, Minister of State of Electronics and Information Technology (IT), on 2 February. Mr Debashish Dutta, Group Coordinator R&D (IT), Ministry of Communications and IT, was the Guest of Honor. The show was the first attempt to provide a strong platform to all stakeholders in both Indian and international gaming markets to present new trends and technologies in the upcoming gaming sector. It proved to be a major hit among youngsters, who were treated to e-sports exhibition tournaments, and games like DOTA2, CS:GO and Clash Royale, among hundreds of others, along with the opportunity to see professional gamers from the international circuit. A one-day international conference on gaming brought experts together to discuss ways to unlock India’s potential in the sector. Health Tech India 2017, organized by CII concurrently with the IETF from 3-5 February, brought over 100 health technology companies, both national and international, together, to showcase their innovations and decide on a future roadmap to provide a fillip to the sector. The first comprehensive show dedicated to health technologies in the country was inaugurated by Mr Faggan Singh Kulaste, Minister of State of Health and Family Welfare. Over 10,000 medical and healthcare FOCUS Attending IETF on 3 February, Mr Piyush Goyal, Minister of State (Independent Charge) of Mines, Power, Coal, and New & Renewable Energy, said the Union Budget focuses on ushering in new technologies, new ideas and innovations, and supporting and encouraging SMEs. This year, for the first time, three concurrent events – Health Tech India, the India Gaming Show, and Knowledge Expo, were organized as part of the mega-event, enabling technological and knowledge convergence on a single platform. The new initiatives also included the debut of three focused shows: the India Industrial Automation Show, the Real Estate and Building Technology Show, and the Welding and Joining Technology Expo. Demonstrating its commitment as one of the most important strategic partners of India's economic resurgence, Japan participated as Partner Country at IETF 2017 for the record 5th time. Forty Japanese companies put up a large display of their products and technologies in IT and Gaming, in an exclusive pavilion. Apart from Japan, around 500 companies from 25 countries participated as exhibitors. Spread across three days, IETF 2017 featured 25 seminars, conferences and workshops. The subjects discussed spanned new technologies in the real estate and automotive sectors, smart waste management under the Swachh Bharat Mission, water security and sustainability, technological innovations in the logistics sector, green mobility, societal manufacturing, and leveraging engineering and technological excellence to boost productivity, build capacity and enhance MSME competitiveness, among many others. Experts participating in the knowledge sessions underscored the need for a central repository of data on the products and services of Indian MSMEs located all over the country, to enhance their visibility and enhance their market access. They also stressed on the application of decision support tools such as CII’s WATSCAN, along with water audits, for smart management of the country’s precious water resources. The key role of the metal and metallurgy sector in creating significant employment opportunities was also highlighted. The 22nd edition of this biennial mega event was supported by 11 Ministries of the Government of India – Ayush; Coal; Electronics & IT; Environment, Forest & Climate Change; Heavy Industries & Public Enterprises; Health & Family Welfare; New & Renewable Energy; Petroleum & Natural Gas; RoadTransport & Highways; Steel; and Urban Development; as also the Government of Delhi.
  16. 16.      Communiqué February 2017  |  19 diseases like diabetes, the R&D landscape for life sciences, leveraging IT for disruptive healthcare services, innovations and trends in medical devices and equipment, and innovations in diagnostics. The event underscored that technology holds the key to providing quality healthcare in a country like India where close to 70% of the population resides in rural areas. Disruptive technologies like telemedicine and technology apps based on mobile telephony can, to a great extent, help India achieve universal healthcare in a relatively shorter timeframe. Health Tech India also highlighted the importance of industry-academia partnerships to bring down the imports of devices and drugs, and to leverage India’s large reservoir of knowledge and expertise in traditional medicines and biotechnology to achieve healthcare goals. To provide a fillip to ‘Global K n o w l e d g e Collaborations,’ the 2nd edition of Knowledgexpo was organized as a concurrent show of IETF, between 2-4 February in New Delhi. The global knowledge partnership platform saw comprehensive convergence of key FOCUS professionals from across the country participated in the event, along with representatives from the Central and State Governments, Defence, Army, Railways, etc, as did a large number of health tech start-ups. Besides live product and equipment demonstrations, the event offered opportunities for entrepreneurs and businesses to connect through B2B meetings. It also served as a platform for the Government to announce new rules and regulations for the medical devices industry to boost manufacturing under the ‘Make in India’ initiative. Since knowledge-sharing was a crucial part of Health Tech India, the event saw two days of conferences covering diverse subjects such as non-communicable Dr Shubnum Singh, Chair, CII-NITI Aayog Projects on PPP for NCDs, and Chief Executive, Max Institute of Health Education & Research; Dr Rana Mehta, Knowledge Partner on Healthcare to CII, and Partner & Lead, Healthcare, PwC; Chandrajit Banerjee; Pooja Kapur, Joint Secretary (ASEAN) Ministry of External Affairs, India; Byambasuren Lamjav, Vice Minister for Health, Mongolia; and Gonching Ganbolo, Ambassador of Mongolia to India, at the ASEM Workshop on Diabetes in New Delhi Glimpses of IETF 2017
  17. 17. 20  |  February 2017 Communiqué players from various domains: Science & Technology, Research & Development, Innovation, Higher Education, Design, Intellectual Property R i g h t s , a n d Entrepreneurship, for forging knowledge-business partnerships. The exhibition area was divided into five zones, i.e. R&D & Technology Showcase, India Design Show, Innovation & Entrepreneurship Showcase, Intellectual Property Showcase, and Higher Education Showcase. The Technology Showcase had two major pavilions.One, created for the Council of Scientific & Industrial Research (CSIR), displayed the prowess of Indian research institutions in terms of research capabilities and infrastructure, technologies and technology-intensive products developed, and the capability and achievements of CSIR labs. In the other, created for the National Accreditation Board for Testing and Calibration Laboratories (NABL), various testing and calibration laboratories like Dr Lal Path Labs, Bureau Veritas, etc. presented their services. The National Research and Development Corporation also participated in the Technology Showcase. The India Design Show, organized in partnership with the Department of Industrial Policy and Promotion (DIPP), the National Institute of Design, and the India Design Council, featured a curated collection of CII Design Excellence Award- winners, Indian iMark granted products, and MSME Design Clinic Scheme-supported products. The exhibitors included top design institutes and design firms from India. Industries, start-ups, investors, and others participated in the India Innovation & Entrepreneurship Showcase. These included Tata Steel, RESCUW Earth Technologies and Advisory LLP, Probus IOT Experience Centre, Green Farms Pvt Ltd, SenseHawk Technologies, and the Entrepreneurship Development Institute of Tamil Nadu, to name a few. The India IP showcase featured the top IP owners of India, including Reliance Industries Ltd, Vatta Smart Ltd, IIT Kharagpur, IIT-Bombay and C-DOT, among others. While the Higher Education showcase presented Indian universities and institutes, a pavilion of Geographical Indications (GI), organized in partnership with the DIPP, presented India’s most potential GIs. In addition to the exhibition, conferences and seminars were held on Higher Education, Innovation and various aspects and applications of Design, including Industrial Design, during Knowledgexpo 2017. FOCUS Visitors at Knowledgexpo
  18. 18.      Communiqué February 2017  |  21 Mindspace economy T he Union Budget 2017-18 came at a time when the economy is seeing a growth rate exceeding 7% during this fiscal, despite global turmoil. At the same time, inflation is down, and the current account deficit is under control. The progress to usher in the Goods and Services Tax (GST) augurs well for future growth and inclusion. While demonetization is expected to inhibit the Gross Domestic Product (GDP) growth rate, this is not likely to last beyond a quarter or two, as the underlying fundamentals are largely positive. Within this environment, Budget 2017-18 maintained a path of fiscal prudence, and strengthened various drivers of growth. As Mr Arun Jaitley, Minister of Finance, and of Corporate Affairs, pointed out during the post-Budget interaction with industry, the Budget is now less a statement of income and expenditure and more a policy document of the Government. Our second lead story puts together various perspectives on this annual financial exercise. 2017-2018
  19. 19.      Communiqué February 2017  |  23 Mindspace A t a time of global uncertainty, India is emerging with a clear strategic direction for its economy, with considerable focus on governance. Fiscal prudence is evident with the goal of a fiscal deficit being pegged at 3.2% of GDP. We see a significant boost to investment in rural areas, a fillip to MSMEs, and continued focus on widening the tax base and creating a more tax-compliant economy. GST implementation is on track through the collaboration of the Center and the States. CII looks forward to its roll-out, which will be a key milestone in India’s economic journey. A recent CII-Maersk study highlighted that high indirect cost of trade accounts for as much as 38-47% of the total transportation and logistics costs, severely undermining the country’s export competitiveness for manufactured goods. The significant increase in infrastructure investments by 14% to `3.96 lakh crores is extremely welcome and would have a multiplier effect on the economy, including employment, especially through high spending in transport infrastructure pegged at `2.4 lakh crores. For the first time, the Railway Budget has been merged with the General Budget, supporting planning for a multi-modal transport strategy for the country. The development of railway stations, creation of a rail safety fund, rail energy efficiency measures, airport modernization and land monetization, expansion of airports in tier-2 cities and increase in expenditure on roads will fast-track the infrastructure mission. The total allocation for rural, agriculture and allied sectors, up at 24% to a record `1.87 lakh crores, will promote agriculture, which accounts for 17% of India’s GDP and 50% of the country’s workforce. The reform agenda continues, with the abolition of the Foreign Investment and Promotion Board, and agricultural market reforms. The move to clean up funding for elections, including the innovative electoral bonds, reiterates the Government’s commitment The Budget takes several welcome steps forward and is fully consistent with the policy agenda of the Government, says Dr Naushad Forbes towards transparency and good governance. CII had recommended reducing the cash donation limits, and the Budget has curtailed such donations to `2,000. The push for autonomy in higher education is the best way to foster quality. I have always argued that combining autonomy with competition is the best way to deliver quality in education, and is much more powerful than our previous attempts to regulate quality into the system. Additionally, measures proposed for skill development and building the apprenticeship scheme will go a long way in strengthening the skill base in the country. One important announcement was the creation of a National Innovation Fund with a corpus of at least `10,000 crores for boosting research and development (R&D). At present, research in the higher education sector is 0.04% of GDP, which needs to increase tenfold to the global average of 0.4%. Similarly, private sector investment in R&D, which is currently at 0.3% of GDP, needs to increase fivefold to the global average of 1.5%. We would have liked to see lower corporate income tax for all companies, given that large companies contribute significantly to investment and employment. And, the additional surcharge on high-income tax payers deviates from the principle of honoring honest tax payers. We also look forward to hearing details about how the time- bound listing of CPSEs will be achieved, and how the Arbitration and Conciliation Act of 1996 will be amended to address PPP resolution. Overall, the Budget is prudent and pragmatic. It takes several welcome steps forward and is fully consistent with the policy agenda of the Government. This year’s excellent Economic Survey gives the direction not just for the next year, but a vision for the next phase in the country’s development. We look forward to many more steps to fulfill that vision. This article by Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall, appeared in the Business Standard on 3 February. Prudent and Pragmatic
  20. 20. 24  |  February 2017 Communiqué The Finance Minister delivers on his promise of ‘Transform, Energize, and Clean’ in this Budget, says Chandrajit Banerjee I n Budget 2017-18, the Finance Minister has undertaken a comprehensive exercise to accelerate the Indian economy’s growth path. Major growth drivers have been addressed in a strategy to stimulate domestic consumption, raise public expenditure on infrastructure, and encourage small and medium enterprises to assume the reins of growth. For Indian industry, which has been troubled by global economic developments, the Budget comes as a soothing balm. The key point to note about the Budget is that it reinforces the commitment of the Government to economic reforms. Staying on the path of fiscal consolidation is important to reassure investors, keep open the space for private sector investments, and address future growth. The Budget works on this effort by keeping the fiscal deficit at 3.2% of GDP and promising to lower it further to 3% in the next financial year. Importantly, the revenue deficit adheres to the mandated level of 1.9% of GDP for 2017-18, signifying that capital expenditure has been accorded high priority. Although the Finance Minister had announced the lowering of corporate incomes tax rates from 30% to 25% two years ago, the Budget this year implemented this historic reform measure by providing tax relief to 96% of Indian companies. This one measure will go a long way to revive the sentiments of the large section of smaller companies that are major creators of employment and wealth. A key benefit is that lower tax rates would bring these companies on par with prevailing rates in other emerging economies and help in building their global competitiveness. We hope that this would be extended to the remaining tax-paying companies shortly. The action on the personal income tax front is equally encouraging, with the lowering of tax rates by as much as half, from 10% to 5% for taxpayers earning between `2.5 lakhs to `5 lakhs. The outcome of this For India Inc, A Soothing Balm measure can be expected to incentivize consumption, expanding the market for consumer products, and is to be strongly welcomed. The Government has also promised to build and modernize infrastructure through a capex slated at 25.4% higher than last year, which would build further growth rivers. With the Railway Budget now merged with the General Budget, the transport sector has been taken up in a multi-modal manner. For example, 2000 km of coastal roads are to be taken up in the coming year, which would sync with port- led development and rail hinterland connectivity. The safety fund for the Railways, as also the listing of key railway public sector enterprises, are progressive measures, as is the intention to modernize 25 railway stations. For airports, a key initiative is to place airport operation and maintenance under the PPP mode for tier 2 cities. Affordable housing received high attention in the Budget, recognizing its vital role as an engine of growth. The real estate sector in India contributes about 5-6% of the GDP, and it is important to increase this share to provide housing for all and generate demand for related sectors. The Prime Minister, in his address to the nation on 31 December, had announced interest rate subventions for housing loans, and the Budget takes this further by allowing the sector infrastructure status. Further, instead of built up area, the definition will now cover carpet area of 30 and 60 sqm. In addition to the infrastructure push, farmers and the rural economy were prioritized in the Budget, addressing the sectors where about 70% of India resides. Credit and insurance schemes will be expanded in a bid to reinforce the economic security of farmers. A special fund is being created under NABARD for micro-irrigation programs, and the move to deploy MNREGA for ‘drought-proofing’ panchayats can add Mindspace
  21. 21.      Communiqué February 2017  |  25 In these turbulent times, the Budget provides much-needed stability, with a steadfast resolve to stay on the reforms course, says Rajiv Memani A Commendable Balancing Act to this effort. The proposed model law on contract farming can be a huge step in integrating farmers with markets, and incentivizing corporate investments in the agriculture sector. Electrification of villages, higher support for employment generation, and strengthening of panchayati raj institutions can transform lives in rural areas. The Budget also accorded high priority to skill development which will empower the burgeoning youth workforce to contribute to economic growth. ‘Sankalp’ is a new program for livelihood promotion, aimed at providing relevant training to 35 million youth. Extending the Prime Minister’s Kaushal Kendras to 600 districts will imply wider outreach to youth across the country, while establishing 100 India International Skill Centers will make them globally employable. These measures will work towards capacity creation and productivity enhancement for our workforce, as was strongly recommended by industry. For businesses, there has been an emphasis on tax administration, simplification and rationalization. The Minimum AlternateTax is now permitted to be carried forward for 15 years, and start-ups may avail deduction for three out of seven years, instead of five years as was previously allowed. Ease of doing business received attention through various measures such as transfer pricing changes, audit limit enhancement, and extension of the time limit for tax return revisions, a welcome series of measures for business. In general, through strategies regarding political funding, digitalization of the economy, and encouraging formalization, the Finance Minister delivers on his promise of ‘Transform, Energize, and Clean’ in Budget 2017-18. This article by Mr Chandrajit Banerjee, Director General, CII, appeared in the Asian Age on 2 February. T he emerging trends of increased protectionism and tax competitiveness from developed economies, hardening crude prices and a dynamic global interest rate environment are just some of the tough external factors within which the Union Budget 2017-18 was presented by the Finance Minister. In these turbulent times, the Budget provides much needed stability with a steadfast resolve to stay on the reforms course. The last four Budgets have shown consistent focus on some fundamental aspects - widening the tax base, addressing the menace of the parallel economy, improving the ease of doing business, and strengthening the anti-abuse provisions. At the same time, the Government has stepped up its spending on infrastructure and achieving inclusive growth; all this, while maintaining fiscal discipline. The fine balancing act is truly commendable. Arguably the boldest proposal of the Finance Minister is the move to bring transparency in electoral funding. Receipt of donations by political parties by cheque or digital mode will alter the political funding landscape completely. The continued commitment to spend on infrastructure development, including roads, highways and railways, is evident in the `3.96 lakh crores spending allocated for 2017-18. Combined with this, the thrust on affordable housing will spur economic activity and job creation. Legislative reforms are also being contemplated for consolidation of labor laws to foster a conducive labor environment. The Budget estimates on the tax revenue front project a very conservative scenario. After nearly 17% growth in gross tax revenues over the last two years, this Budget estimates tax revenue growth of only 12.2%. This leaves room for improvement in the aftermath of demonetization, which can yield dividends directly from RBI’s balance sheet readjustments and indirectly from bank deposits with the potential of formalization of a part of the parallel economy. There are many positive measures in the Budget, which seek to improve ease of doing business in India and attract foreign capital. Additional clarifications and review of some of the proposals would go a long way in ensuring certainty and improving domestic and foreign investments. Mindspace
  22. 22. 26  |  February 2017 Communiqué Mindspace Measures to Attract Foreign Capital Proposals such as the retrospective clarifications on applicability of the indirect transfer taxation provisions to Foreign Portfolio Investors, further FDI liberalization, and abolition of the FIPB, are significant messages to attract foreign capital. The proposal to curb the long term capital gains tax exemption post introduction of the Securities Transaction Tax (STT) in 2004 only to cases where both the legs of acquisition and disposal have suffered such STT is well-intentioned. However, supplemental notification, exempting genuine transactions from any unintended consequences of this proposal, such as acquisition of shares through IPO, FPO, bonus or right issue etc., should be issued at the earliest. Given that India is primarily an inbound economy, we believe that the tax policies should support the country’s growth agenda. For many MNCs entering India, the preferred route is to use lending from overseas (or guarantee-based borrowing within India). In such an environment, the introduction of the capitalization rules are likely to adversely impact many subsidiaries of MNCs that operate in India and have huge capital requirement, especially in the infrastructure sector. The Government can consider OECD’s suggestion to introduce a group ratio rule in addition to a fixed ratio rule. Secondly, it would be important to exclude the reference to implicit guarantee, since it is not possible to prove or disprove implicit guarantee. The computation of the allowable interest as per current draft regulations considers only interest paid to AE and not the interest paid to third parties (under a guarantee from an AE). The Transfer Pricing (TP) Rules are proposed to be amended to provide for secondary adjustment. While secondary adjustments are a globally accepted principle, the timing of its introduction and implementation in India is likely to lead to an adverse situation for many companies given the current turmoil and the policy changes in the US. Secondly, many APAs have been signed and companies may have agreed to a higher margin in the APAs after factoring in the fact that tax incidence will only be on the primary adjustments, with no additional dividend distribution tax arising in the future. It is suggested that existing APAs should be protected from any further secondary adjustment. Further, an option to remit or not to remit the amount of primary transaction should be provided to the taxpayer. Progressive Tax Relief The limited give-away on the tax front, in terms of marginal relief to the low income group between `2.5-5 lakhs, and 5% tax reduction to MSMEs is also well-targeted, reaching out to the segment that has been the most impacted due to demonetization. The reduction in the corporate tax rate to 25% for MSMEs with a turnover of less than `50 crores will provide considerable relief to small companies and enable them to expand their capacities. In the interest of simplification, it is suggested that the MAT for such companies be done away with. As acknowledged by the Finance Minister himself, these companies do not get many exemptions. Tax Simplification and Certainty It is heartening to note that many proposals that were part of the Justice Easwar Committee on Income Tax Simplification have been addressed – reassuring taxpayers of a consultative approach which has become a hallmark of the tax legislative process recently. The much-needed clarity on MAT applicability post Ind AS adoption has been provided, building largely on the recommendation of the Committee constituted in this regard. The proposals are premised on the basis that existing adjustments provided in MAT computation shall be made to net profits before other comprehensive income. The resultant will be further adjusted as now proposed for items in other comprehensive income, as also the transition adjustments. The fair value adjustments that are mandated through the profit and loss account in Ind AS need further clarity. In such adjustments, both losses and profits should be treated similarly if considered eligible adjustments to distributable profits. This may have been an inadvertent miss, considering that the matter rests between the CBDT and the Ministry of Corporate Affairs. The Budget sends out key messages on continuity in the policy of fiscal prudence and resisting counter cyclical measures to artificially boost the economy, consistency of purpose, boldness of reforms, and building certainty in tax through a collaborative approach. The implicit message cannot be missed by any serious foreign investor seeking to place bets on the most promising of developing economies. Rajiv Memani is Chairman, CII National Committee on Taxation, and Chairman, India Region & Emerging Markets Committee, Ernst & Young LLP.
  23. 23. 28  |  February 2017 Communiqué M r Arun Jaitley announced two major policies for the Indian MSME sector in his Budget. The first is lowering the corporate tax rate for enterprises with an annual turnover of up to `50 crores from 30% to 25%. Second, for small traders with turnover up to `2 crores, the presumptive tax has been lowered from 8% to 6%. Along with a number of other key measures, the Budget this year provides high encouragement to MSMEs, which contribute greatly to employment in the country. The Finance Minister also announced the doubling of the target lending under the Pradhan Mantri Mudra Yojana from `1.2 lakh crores during the last fiscal to `2.44 lakh crores, to enhance funding to micro enterprises. An increase in the allowable provision for non-performing assets (NPA) from 7.5% to 8.5% for banks will encourage accelerated lending to MSMEs, since a surge in NPAs has been a crucial factor in their cautionary stance towards lending to these enterprises. Earlier, the Government had pledged to enhance the credit guarantee limit to MSMEs under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme from the current `1 crore to `2 crores, and to increase the cash credit limit from 20% to 25% of the turnover to enhance the availability of working capital for MSMEs. All these policies will significantly lower the financial burden for MSMEs, which are reeling under the pressure of acute financial paucity. In addition, the Finance Minister stated that the surplus money in the banking system owing to the demonetization of high currency notes has enhanced the capacity of banks to lend at reduced rates, which will lead to greater credit availability and lower borrowing costs for all enterprises, including MSMEs. Tax incentives and exemptions as well as reduced tax rates for MSMEs have long been part of CII’s policy advocacy agenda for the sector. CII welcomes the new initiatives by the Government as they address the unavailability of affordable and adequate credit and lack of access to formal funding. A strong proponent of simplified labor laws and regulatory requirements for Indian MSMEs, CII also welcomes the announcement to undertake legislative reforms to simplify, rationalize and amalgamate the existing labor laws into four Codes on (1) Wages; (2) Industrial Relations; (3) Social Security and Welfare; and (4) Safety and Working Conditions, to foster a conducive labor environment in the country. CII has also been stressing the need to conduct awareness sessions to enhance the preparedness of Indian MSMEs to transition to the GST regime. The Government has announced the launch of extensive reach-out efforts to trade and industry from 1 April 2017 to make them aware of the new taxation system and its provisions. In its representations to the Government, CII has recommended the implementation of the revised MSME definitions as per the MSME Development (Amendment) Bill, 2014 and, additionally, considering the implementation of a framework for MSME definitions along the criteria of (1) turnover (2) number of employees, and (3) investment, to bring these at par with the global framework. Key CII recommendations for the MSME sector also include: • Enhancing the limit of priority lending • Low cost credit schemes • Classification of NPAs for MSME to be 120 days with a special dispensation of 30 days • Dedicated equity funds for MSMEs • Implementation of the Trade Receivables electronic Discounting System (TReDS) for MSME bill discounting • Setting up of land banks as well as reservation of space for MSMEs in industrial corridors, etc. The Budget announcements will provide significant relief to MSMEs and spur their growth. These measures bear testimony to the importance ascribed by the Indian Government to these enterprises. CII hopes that the momentum can be sustained through a continuously evolving policy environment, with more reforms to address the needs and concerns of Indian MSMEs, which form the backbone of the Indian economy. The Budget provides high encouragement to MSMEs, which contribute greatly to employment in the country Mindspace Giving MSMEs a Boost
  24. 24.      Communiqué February 2017  |  29 S enior officials of the Ministry o f F i n a n c e shared their views and comments on the policy and direction of the Union Budget at CII's Post-Budget Interactive Session with the Ministry of Finance, in New Delhi on 6 February. Mr Rajiv Memani, Chairman, CII National Committee on Taxation, and Chairman, India Region & Emerging Markets Committee, Ernst & Young LLP, congratulated the Government on coming up with an outstanding and prudent budget, with the emphasis on fiscal prudence, widening of the tax base, ease of doing business, and tax compliance. He appreciated the reduction of corporate tax rate for MSMEs, saying that it would go a long way in supporting the growth of the sector. Mr Memani requested the Government to consider and address the concerns of the industry on various issues like MAT, APA, GAAR, long term capital gains, possible harassment to tax payers and Operation Clean money. “The Government should reconsider the surcharge proposed on incomes between `50 lakhs and `1 crore, as the move goes against the intention to reward honest taxpayers. The Government should consider reducing the rate of surcharge to 5%, if not remove it altogether,” he suggested. Mindspace 'The Budget this year focuses on the clarity and certainty of the tax laws, while at the same time endeavoring to make the country more tax-compliant, and to honor honest tax-payers. The focus areas for this budget are digitalization, demonetization, expansion of tax base, and saving genuine tax payers from any harassment from the taxman. The Government would come up with any clarifications that might be called for on any of the newly-introduced legislations, such as GAAR and POEM.’ Sushil Chandra, Chairman, Central Board of Direct Taxes ‘Since the Government is committed to bringing in Good and Services Tax (GST) with effect from 1 July, there are not many changes in the area of indirect taxes. The changes that have been incorporated in the Budget are largely in the areas of digitization, ease of doing business, export promotion and anti-avoidance. The move to GST will be a smart transformation i.e. Simple, Moral, Accountable, Responsible and Transparent, and will radically change the indirect taxation scenario of the country. The final GST law is expected to be in the public domain by the end of March.’ Ram Tirath, Member - Budget and GST, Central Board of Excise & Customs ‘The Government will save genuine tax-payers from any harassment under the newly-launched Operation Clean Money, and will attempt to address the concerns of industry on various issues.’ Sushil Kumar Sahai, Member - Income Tax, Central Board of Direct Taxes Ram Tirath, Member - Budget and GST, Central Board of Excise & Customs; Rajiv Memani, Chairman, CII National Committee on Taxation, and Chairman, India Region & Emerging Markets Committee, Ernst & Young LLP; Sushil Kumar Sahai, Member - Income Tax, Central Board of Direct Taxes, and Sushil Chandra, Chairman, Central Board of Direct Taxes, at the Post-Budget Interactive Session in New Delhi Policy and Direction
  25. 25.      Communiqué February 2017  |  31 T he Economic Survey 2016-17 prepared by the Ministry of Finance under the guidance of Dr Arvind Subramanian, Chief Economic Adviser, included analytical chapters on matters of pertinent interest regarding the Indian economy. Affirming that the underlying fundamentals are manifestly strong, the Survey pointed towards relatively low inflation, robust agriculture growth, moderate current account deficit, stable exchange rate and fiscal discipline. It provided a strong and convincing template for improving productivity and efficiency while boosting economic growth. On fiscal consolidation, the Survey advocated adherence to the basic precepts of fiscal prudence, maintaining that giving a greater role to counter-cyclical policies is less relevant for India. It is notable that the Budget presented the following day adhered to this precept. C I I w e l c o m e d t h e recommendation to incentivize good fiscal performance by the Indian States as a means to keep the overall fiscal deficit under check. CII also welcomed the Survey’s suggestions that the Center should lead the way in sound fiscal management. CII appreciated the Economic Survey’s suggestion for political consensus on privatizing sectors such as Aviation, Banking and Fertilizers. Spreading privatization to other sectors should also be a priority, as it would release resources for investment and improve the management of the enterprises concerned. Addressing the balance sheet problem of high and rising NPAs in the banking sector was mentioned by the Survey as an area of concern. The RBI focus on getting banks to clean up their balance sheets must be sustained until the exercise is completed. The implementation of the Goods and Services Tax (GST) would be a game-changer which would result in a common market, improve tax compliance and help realize the vision of ‘Make in India.' CII welcomed the Survey’s recommendation that real estate and land be brought under GST. The proposal of a Universal Basic Income expounded by the Survey for the first time is an idea which needs serious deliberation as a mechanism to provide a certain minimum living standard to all citizens, and, as well, remove inefficiency in the subsidy system. The focus on labor-intensive sectors such as apparel and leather to make them globally competitive is timely. Reforms in labor and tax laws not only in these sectors but in many others would lead to greater job creation. CII has recommended that the labor reforms articulated in the apparel policy to allow fixed term employment should be replicated across sectors. The Budget followed up on this to extend the apparel package to the leather and footwear sector. Industry is hopeful that the ideas articulated in the Economic Survey would generate new discussion points that could be implemented over the next few years. ‘The Survey offers innovative solutions and new ideas for the Indian economy. It maintains cautious optimism about the c o u n t r y ’s g r ow t h prospects with GDP growth poised to touch 6.75% to 7.5% in the coming year. Uncertainty related to the impact of demonetization and muted external economic conditions would have an impact on the Survey’s estimate.’ Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall Mindspace Economic Survey provides Innovative Solutions, New Ideas
  26. 26. 32  |  February 2017 Communiqué Building Capacity CII Marketing Summit The rise of search engines, social media, and the mobile revolution has changed the marketing landscape completely over the past few years. Consumers are becoming increasingly fastidious and are using the most convenient channel, expecting a more personalized shopping experience. This was brought out at the CII National Marketing Summit held in Mumbai on 30 January, with the theme ‘Digital, The New Normal of Marketing.’ Consumer behavior has evolved over the decade, and marketers have to cater to multi-screen, mobile and socially-networked customers. Digital is at the core of everything in marketing today, said speakers at the Summit. Enterprises are investing large amounts in new marketing tools to keep pace with customers in the digital age with a major focus on product positioning, social media, e-commerce, etc. Businesses that digitally transform are able to connect more closely with customers, speed up the pace of innovation and, as a result, claim a greater share of profit in their sectors, said prominent industry leaders. CII-KPMG released a report on ‘Digital: The New Normal of Marketing’ at the Summit. The report Marketing Thomas Varghese, Chairman, CII National Committee on Marketing, and Business Head-Textiles and Acrylic Fibre, Aditya Birla Group; Rajiv Dube, Director, Aditya Birla Group; Ganesh Mohan, Head of Strategy, Bajaj Finserv Ltd, and Aditya Rath, Partner, and Head for Digital Customer, KPMG, at the Marketing Summit, in Mumbai brings out valuable information on Indian digitization and the shift from traditional to digital marketing. The report estimates that India is one of the fastest- growing advertising markets globally, with an estimated growth of 15.5% in 2016, driven by a large consumer base and a burgeoning e-commerce industry. Although the share of digital advertising spend remains low, at 12.7% in 2016, it is one of the fastest-growing mediums at an expected CAGR of 33.5% (2015-2020) to cross `255 billion in 2020. The report says that connected devices, smarter devices and ‘hyper relevant rich content’ will drive consumption. Marketers will be well-served if they are able to ride the data wave and use technology to build analytical models. The digital marketer will need to deliver a distinctive consumer experience using various channels, thus becoming a key contributor to the overall omni-channel experience, it says. The report also offers insights into nascent technologies like emotions analytics and predictive marketing. “The post-demonetization days have clearly shown that the country is set to leapfrog a few stages to embrace the power of digital. Mobile is being rapidly adopted and marketers have an incredible opportunity to enhance the game of digital communication and deliver great customer experiences at each point of the journey,” said Mr Thomas Varghese, Chairman, CII National Committee on Marketing, and Business Head, Textiles and Acrylic Fibre, Aditya Birla Group. “Digital marketing is more about big data and technology innovation than conventional marketing. Today’s digital marketer has to look at the consumer as a living sensor which creates data. Insights on consumer behavior will drive the next big innovation on the campaign. Success will depend upon how the digital marketer is able to drive differentiated strategies for each digital channel and eventually converge on consumer experience,” said Mr Aditya Rath, Partner, and Lead for Digital Customer, KPMG. More than 400 delegates attended the Summit with representation across industry sectors, including FMCG, wellness, automobiles and manufacturing, to mention a few.
  27. 27.      Communiqué February 2017  |  33 Building Capacity Workshops on GI CII, in association with the European Union Intellectual Property Office (EUIPO), and the Indian Patent Office (IPO), Ministry of Commerce and Industry, organized a series of training programs –cum-workshops on Geographical Indications (GIs) for producers, attorneys and advisors on 16, 18, 20 and 21 January, in Kochi, Chennai, Vijayawada and Bengaluru, respectively. The objectives of the programs were to exchange best practices and cooperation in the field of IP, enhance the capacity of the Indian productive sectors to create, protect and manage their own IP; increase awareness among consumers on GI products, and discuss how GI protection can be facilitated and leveraged effectively. The aim was to increase the skill and capacity of communities, officials of relevant departments, start-ups and entrepreneurs, as well as advisors, trainers and facilitators supporting GIs, and also sensitize stakeholders on how to use GIs as a marketing tool. The program drew more than 60 active participants in each location. IP AWAKE CII, in association with the Indian Patent Office, Department of Industrial Policy and Promotion, (DIPP), Government of India, organized ‘IP Awake: Awareness Program on IPR & National IP Policy’ on 21 January in Jabalpur. The session highlighted the importance of IP in business, especially for MSMEs. It also discussed IPR do’s and don’ts. Intellectual Property Training and Workshop on GIs in Chennai Awareness Seminar on Intellectual Property Rights in Jabalpur
  28. 28. 34  |  February 2017 Communiqué Societal Interface C II works towards promoting and facilitating an enabling environment, conducive for the inclusion of People with Disabilities, within the corporate sector. A National Committee on Special Abilities anchors this agenda by galvanizing champions from industry, conducting sensitization and training programs, and facilitating corporate sector response. The Rights of Persons with Disabilities Bill 2014, recently passed by both Houses of Parliament, is a landmark decision towards ensuring equal opportunities and accessibility to Persons with Disabilities (PwD). The Bill has increased the provision to ensure that PwD have barrier-free access in buildings, transport systems and all kinds of public infrastructure, and are not discriminated against in matters of employment and education. Highlights of the Bill 1. The Bill replaces the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act 1995. 2. It covers 21 conditions, instead of 7 disabilities specified in the earlier Act. Apart from listing these disabilities, the Bill also lays down provisions to allow the Central Government to notify any other condition as a disability. 3. A person with 40% disability will be considered as a PwD. 4. While the 1995 law had 3% reservation for the disabled in higher education institutions and government jobs, the 2014 Bill has raised this to 5%, adding 1% each for mental illness and multiple disabilities. 5. The 2014 Bill has made violation of any provision of the Act punishable with a jail term of up to 6 months, and/or a fine of `10,000. Subsequent violations could attract a jail term of up to 2 years and/or a fine of `50,000 to `5 lakh. 6. Constitution of a National Commission, State Commissions, Central and State Advisory Boards, and district-level committees for PwD. Towards Inclusion of Persons with Disabilities Implications for Industry 1.  The Bill directs all establishments, including the private sector, to notify an Equal Opportunity Policy, detailing the measures to ensure non-discrimination in any matters related to employment, including promotion and pay scale. 2.  A copy of the Equal Opportunity Policy has to be registered with the National Commission or State Commission. 3. Establishments are to maintain records of PwD in relation to their employment, and facilities provided, in whatever form is prescribed by the Central Government. The records shall be open to inspection as required by the appropriate authority. 4. Establishments are to appoint a Grievance Redressal Officer to address matters related to the employment of PwD. 5. No promotion can be denied to PwD merely on the ground of disability. No establishment can reduce the rank of an employee who acquires disability during his or her service. 6. The Bill mandates that all new buildings must adhere to accessibility norms. Without this, permission for constructing the building and certificate of completion will not be provided by the Government. 7. The Bill says that the Government must take measures to ensure that all content available through audio, print and electronic media is accessible to PwD; and goods and equipment are designed as per universal norms. 8. Service providers shall provide services in accordance with accessibility norms within a period of two years from the date of notification of such regulations. 9. The appropriate Government shall provide incentives to employers in the private sector to ensure that at least 5% of their work force is composed of PwD. 10. Failure to produce any books, accounts, other documents or any information as directed by the Bill, shall be punishable. Government to create a special courts for speedy trials.
  29. 29.      Communiqué February 2017  |  35 Building Capacity CII SoccerFest The CII National Committee on Sports is driving the agenda to evangelize grassroot sports in India with the vision of making India a sporting nation. In this regard, the 4th edition of the CII SoccerFest was recently organized in New Delhi. The main objective of this inclusive event was to create awareness, develop grassroots football, and connect and involve the key influencers for football within the Indian corporate world. The CII Soccer Fest included 16 women teams, 16 boys’ teams, 32 men’s teams and 8 disabled athlete teams.
  30. 30. 36  |  February 2017 Communiqué Curtain Raiser I ndia’s knowledge- driven service s e c t o r i s extremely critical to the development trajectory of the e c o n o m y. T h e digital platform for service delivery is an important step in achieving this and India should leverage the demographic dividend it enjoys, stated Ms Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce and Industry, addressing the Curtain Raiser for the Global Exhibition on Services (GES) 2017, to be held from 17-20 April in Noida, on 24 January in New Delhi. The GES has attained the stature of an annual flagship event to augment international trade in services not only for India but for many countries in the world, she said. Ms Sitharaman said India will soon submit a proposal for a Trade Facilitation Agreement (TFA) in Services at the WTO, to initiate discussions on this topic before the WTO ministerial meeting, and at the Buenos Aires ministerial in particular. India has already floated the concept note for this, and is now “moving further towards a proposal,” said the Minister. The services sector constitutes a huge segment of the value added to the GDP of the economy. The significant growth of FDI signals the increasing interest of Indian services globally, said Ms Rita Teaotia, Secretary, Ministry of Commerce and Industry. The services sector, she added, provides resilience to cushion the economy against the cyclical economical risks that have been witnessed in recent years. However, to maintain growth and quality, we need to align Indian services to world standards, she stressed. Earlier, in his welcome remarks, Mr Chandrajit Banerjee, Director General, CII, observed that the center of gravity of global growth has moved to Asia. India is regarded as a country with high potential, with its economy now on the fulcrum of a high growth trajectory. The landscape of the services sector in India is also going through significant transformation heralding a new paradigm of growth and development, he said. CII this year will be working very closely with each of the Indian States on their preparedness to enhance service exports vis-a-vis their potential through a wide array of advocacy and knowledge programs, said Mr Banerjee. The 3rd edition of GES will build on the success of the preceding events.This year, 20 sectors are being tapped as compared to 17 sectors earlier. The new areas being unveiled are Retail and E-Commerce, Sports Services and Railway Services. Spread over 42,000 sqm, GES 2017 will also host new initiatives, such as a festival of Indian cuisine, drawing attention to the high-growth and high-return potential of India’s food sector. Services data released by the Reserve Bank of India (RBI), shows that services exports have retained a significant absolute level of over $150 billion, reflecting many years of sustained performance and growth, despite the marginal dip last year in the face of the global slowdown. It is, however, heartening that the bleak global trade scenario in recent years appears to be improving, with provisional numbers released by RBI for the current financial year pegging service exports for April to September 2016 at $80 billion, a rise of almost 4% from the $77 billion for the corresponding period of the previous fiscal. 3rd Global Exhibition on Services to showcase 20 sectors Anup Wadhawan, Additional Secretary, Ministry of Commerce & Industry; Rita Teaotia, Secretary, Ministry of Commerce & Industry; Nirmala Sitharaman, Minister of State (Independent Charge), of Commerce & Industry; Chandrajit Banerjee, Director General, CII, and Sudhanshu Pandey, Joint Secretary, Ministry of Commerce & Industry, at the Curtain Raiser of the Global Exhibition on Services (GES), in New Delhi
  31. 31.      Communiqué February 2017  |  37 Engaging with the World A 125-member strong Indian delegation, comprising senior Ministers, high-ranking Government officials, CEOs of major Indian companies, and media and civil society representatives, participated in the 47th Annual Meeting of the World Economic Forum (WEF) in Davos-Klosters, Switzerland, from 17-20 January. The Indian contingent was the 5th largest, part of the 3,000-strong community that included over 50 heads of state or government, key finance, foreign, trade and industry ministers, governors of central banks, and 1500 business leaders, along with religious, media, and cultural leaders, social entrepreneurs, and heads of non-governmental organizations, from around 90 countries. CII was the lead coordinator for the Indian industry participation at the meeting, held under the overarching theme of ‘Responsive and Responsible Leadership.’ CII, as well as several Indian companies, organized events on the sidelines of the event. CII held its traditional annual ‘India Reception’ and an India breakfast session. It also collaborated with the Department of Industrial Policy and Promotion (DIPP) for the ‘Make in India’ Lounge, and with the Government of Andhra Pradesh for an Investment Roundtable. Mr Nitin Gadkari, Minister of Road Transport and Highways, and Shipping; Ms Nirmala Sitharaman, CII@DAVOS 2017 Minister of State (Independent Charge) of Commerce and Industry; Mr N Chandrababu Naidu, Chief Minister of Andhra Pradesh; Mr Amitabh Kant, CEO, NITI Aayog; Mr Ramesh Abhishek, Secretary, DIPP; and Mr Kamal Nath, Member of Parliament, participated in the Annual Meeting, along with senior officials. The Indian industry delegation included Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall; Mr Rahul Bajaj of Bajaj Auto; Mr N Chandrasekaran of the Tata Group; Mr Baba Kalyani of Bharat Forge, Mr Nadir Godrej of the Godrej Group, Mr Sunil Bharti Mittal and Mr Rajan Bharti Mittal of Bharti Enterprises, Mr Uday Kotak of Kotak Mahindra, Mr Dhruv Sawhney of Triveni, Ms Arundhati Bhattacharya of SBI, Mr GM Rao of GMR Group; Mr Shashi Kiran Shetty of All Cargo Logistics; Mr Tulsi Tanti of Suzlon; Mr Pranav Adani of Adani Group; Mr Nikhil Meswani of Reliance Industries; and Mr Chandrajit Banerjee, Director General, CII, among others. Over 75 CEOs participated in the CII-BCG breakfast session titled ‘India and Emerging Markets in the New Phase of Globalization.’ The discussion revolved around two fundamental questions. First, what has driven the superior performance of India, and second, can India maintain its position in the upper end of performance and sustain the growth story of emerging markets? Dr Naushad Forbes; Chandrababu Naidu, Chief Minister of Andhra Pradesh, and Chandrajit Banerjee, at the CII-Andhra Pradesh Roundtable at Davos 2017 Chandrajit Banerjee, Director General, CII; Hans-Paul Buerkner, Chairman, BCG; Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce and Industry; Nitin Gadkari, Minister of Road Transport & Highways, and Shipping; Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall, and Arindam Bhattacharya, Senior Partner (India), BCG, at the breakfast session on ‘India & Emerging Markets in the new Phase of Globalization,’ during the WEF Annual Meeting in Davos