Indo-French Manufacturing Conclave of IFCCI, MCCI, Invest India
(IFCCI-Indo-French Chamber of Commerce and Industry; MCCI-The Madras Chamber of Commerce and Industry; Invest India-National Investment Promotion and Facilitation Agency; Speakers - Atul Renavikar, Executive Director, Michelin India Pvt Ltd; S. Sarathi, Sr Vice President, Anand Automotive Ltd & Chairman, Manufacturing Committee, MCCI; Payal Koul, Vice President, Invest India; Philippe Janvier-Kamiyama, Consul General of France to Pondicherry; Girish Shankar, IAS, Secretary of Heavy Industries Dept & Chairman, National Automotive Board – not present, but his speech was read out; Ravin Mirchandani, Executive Chairman, Ador Powertron; Panel 1 on co-innovation, the future of the manufacturing industry – Moderator Ravin Mirchandani, Executive Chairman, Ador Powertron; Prof Francois Bernot, Founder - FranceCol Technology, Dr. Ranjit Kovilinkal, Co-Founder - Hygeia e-Services Pvt Ltd; Manu Karan, Vice President, Business Development - Cleanmax Solar; Rahul Kumar, CEO - Lactalis India; Arya Tripathy, Senior Associate – PSA; Panel 2 on sustainable mobility, the path to achieving manufacturing excellence in the automotive industry - Moderator Raghavan Srinivasan, Editor, The Hindu Business Line; B. S. Rao, Managing Director - Mecaplast India Pvt Ltd; Ludovic Gouere, Deputy Director, 2ASDU (Renault); Atul Renavikar, Executive Director - Michelin India Pvt Ltd; Bharat Salhotra, Managing Director - Alstom India & South Asia; Priti Suri, Founder & Managing Partner - PSA)
Blog post link: http://bit.ly/2tHYVEp
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Speech of Girish Shankar, Secretary, Dept of Heavy Industry, GoI, in Indo-French Manufacturing Conclave
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Address by Mr. Girish Shankar, Secretary, Department of Heavy Industry,
Government of India
Ladies and Gentlemen,
Friends,
1. India and France maintain strategic relations for more than four
decades. It has primarily focused on Defence, Space, Manufacturing,
and Nuclear Energy. We value Indo -French relations dearly. We share
common passion for food , entertainment and art in our lives.
2. Past few decades we are discovering our own versions of free market
economy. After somewhat introspect period we are again together. The
modern times, we will have more matured relationship. If that was our
youthful relationship, today it will be more thoughtful and permanent
in nature. Our corporate sectors have also matured with exposure to
globalization. For future lies in the strong roots of past.
3. In the recent times, both the countries are trying to transform this
strategic relationship into a holistic one with coverage extended to
private trade, investment and cooperation. It is expected that such
measures would cement and consolidate existing relationship and make
it more inclusive.
4. We have annual summits at the level of States on one hand while on
the other hand we have business CEOs roundtable.
5. The role of industrial manufacturing will be critical to achieve
targets set for two-way trade and investment. The two countries seek
to achieve this target by promoting bilateral economic, trade and
investment cooperation. The only way we can do it by more and more
mingling of our business community in events like this.
6. In 2013, ‘The Regional Economic Service of the Embassy of France in
India’ stated that there are more than 1000 French establishments in
the country, which are primarily linked to 394 major companies. In
addition, there are 181 independent French businessmen in India with
their offices spread across India. These companies have employed
around 3,00,000 people and have a turnover of more than 20 billion
USD.
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7. It is interesting to note, that 60% of the parent companies are now
being run by Indians themselves. However, their share in capital
assets is relatively quite low. The companies are mostly situated in
Maharashtra, New Delhi, Karnataka and Tamil Nadu.
8. I am always of the opinion that to reach Indian consumers having
manufacturing set up in India is the best way. The icing on the cake
is exports from India to markets not possible from France.
9. India of today is more varied. We have launched a record 104
satellites in one go. But we also import US $ DHI 30 billion worth
engineering every year. AT the same time we also export Engineering
good worth US $ 45 billion every year.
10. You take any sector of manufacturing, huge changes are happening.
Indian democracy is now more consumer oriented. Free market economy
and no trade barriers, coupled with very low import duties have
provided unprecedented opportunities to the World to do business
with India.
11. We are transforming very fast. Central as well as State Governments
are fast liberalizing the way business is done and Govt – business
interactions are becoming more and more through IT. The quality of
Governance and policy support is enhancing by the day. These are
exciting times to be in India. If I were you , I would never let go
this historic opportunity.
12. The CEO Forum has the mandate to identify the potential and priority
areas of cooperation, issues faced by the businesses in achieving the
desired level of cooperation in those areas and measures to be
undertaken at the Government level for addressing those issues.
13. Indian and French economies have natural areas of synergy. India is
ready to share its experience and expertise in setting up Information
Technology parks. We need to focus the possibilities of cooperation
in the IT , Food, Travel, Hospitality, Health, Energy, Infrastructure
and Manufacturing sectors, as the scope is immense. Now it is upto
the business communities to seize the initiative.
14. Regarding infrastructure, I would like to again highlight that
India’s quest for new facilities in power, transportation, urban
development, communication, etc has truly taken off. India’s mission
for infrastructure opens up new areas of opportunity for
international companies, including construction and turnkey projects,
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supply of machinery and equipment, skill development to meet the
shortage of skilled labour in India. Besides, there are also
opportunities in maintenance, services and operations of the
projects. I strongly encourage French companies to closely examine
some of these opportunities and make plans for investing in India for
long-term gains.
15. There is need for the private sectors of the two sides to take the
lead in these areas. Information gaps must be addressed in a timely
and concerted manner. Both countries should make available to each
other the investment regulations and ways of doing business. At the
same time, I would urge industry associations to increase their
presence in each other’s countries.
16. My Department has brought out a Policy for tripling heavy engineering
sector by 2025. This translates into huge opportunities. To support
the effort of the industry we also have a grant scheme for
technologies. HEC has taken advantage of it and put up a Rs 50 crore
Technology Centre. They are training engineers in high tech steel
manufacturing and also manufacturing of heavy duty gears and other
Equipments. A Centre of Excellence in Manufacturing Technologies has
been set up in IIT –Madras.
17. Today India is fast emerging as cradle of manufacturing opportunities
of the World. Our national manufacturing policy couples with Make in
India. They are as historic initiatives in transformation of industry
post 1991 Industrial Policy. In 1991 we embraced a path of free
market economy in synchronization with West and the rest of the
world. However, it is Make in India which has capabilities of
servicing national priorities of employment and spreading of wealth
through the tool of industrial development.
18. Automobiles and heavy engineering are two largest pillars of Capital
Gods. To share with you the importance of automobiles and heavy
engineering in the manufacturing sector of the country- Automobiles
have a current turnover of US $ 150 billion and are 7.1% of our GDP.
The CG sector accounts for 42.54 US$ billion turnover and is 2% of
the GDP. Combine they are about 9.2% India's GDP. This is 60% of the
manufacturing.
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19. Recognizing the importance of the automobile industry in the Indian
economy, my Department has finalized Automotive Mission Plan 2016-
26, setting targets for Indian Automotive Industry by 2026 to
a. be among the top three of the world in engineering, manufacture
and export of vehicles and auto component.
b. grow in value to over 12% of India’s GDP.
c. generate an additional 65 million jobs.
20. Department of Heavy Industry has formulated FAME – India Scheme
(Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in
India), wherein it is intended to support the hybrid / electric
vehicles market development and its manufacturing eco-system to
achieve self-sustenance at the end of the stipulated period.
21. Through FAME India Scheme, the Government has given direct support to
about 1,20,000 electric & hybrid vehicles by way of demand
incentives since its launch on 1st April 2015 and more are in
offing.
22. Department of Heavy Industry has also brought out new integrated
capital goods policy in Feb 2016 in synchronization with the
objectives of Make in India.
23. To share with you highlights of the new capital goods policy, we want
to treble the production, employment and exports by 2025. This will
enable the sector to contribute 20% in India's manufacturing from
current 12%. You can expect 30 million new jobs to be created by
2025 and the total production to go upto US $ 115 billion. This opens
new vistas for global business communities to shift their
manufacturing base in India, Reduced corporate taxes of 25% and GST
regime will make manufacturing in India further more tax efficient.
24. Government of India is investing heavily in the infrastructure
sector, which is creating demand for the Capital goods and
automobiles.
25. For example As a part of infrastructure reforms, the government plans
to double the length of national highways to 200,000 kms in next ten
years. During FY 17-18 alone, Government of India allocated USD 9.51
billion for development of national highways across the country. 40
kilometres per day of roads are being made.
26. We are adding 100 smart cities. To begin with the Government will
provide 50% of the funding.
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27. More than 10 cities will have Metro projects.
28. Port connectivity for 80 ports.
29. 100 million houses to be constructed in next ten years.
30. $853 Billion, real estate market size by 2028.
31. US 71 billion will be invested in Railways.
32. 175 GW of renewable energy capacity will be created.
33. The list is endless.
34. I would now like to take few minutes on Industry 4.0 and India.
Industry 4.0 is also cyber –physical or amalgamation of mind and
machines – the next level of totally flexible machine solutions. On
December 22 we had a brain storming session with experts on the
subject of Industry 4.0. Very clearly the agenda for India includes
awareness creation as the first step followed by technology demo
centres, bridge course in multi technologies by top engineering
colleges for learning Industry 4.0 technologies, enabling policy
framework and technology development and excellence centres.
35. I would like to conclude by giving a message to the industry that
there are unprecedented opportunities in the manufacturing of heavy
engineering and automobiles in India, if we adopt technology as a
tool. My Department will work with you to realize these
opportunities.
36. I also hope that this event will help to improve cooperation in joint
design, development, manufacturing and marketing of technology-driven
products. Such cooperation could go beyond space applications,
defence technologies, aviation, and cover new materials,
communications and information technology.
37. I hope that this conclave will be useful and lead to better
understanding and will help in identifying areas for cooperation
between the two countries.
Thank you.