A look back at the work done by your chamber in the past one month

1. • FICCI COMMENTS ON GDP NUMBERS
(30 November 2017)
Growth numbers are in sync with the expectations and re-affirm that signs of recovery are in sight. The
performance of industrial sector has noted an improvement after dropping to the lowest in almost five
years in the previous quarter. After the massive destocking undertaken by companies before
implementation of GST, production lines are once again coming back on track. It is encouraging to see
government’s approach towards resolving GST related issues. We are confident of moving to a seamless
GST regime in a few months from now, said FICCI.
There has been positive news in the form of improvement in ease of doing business rankings, Moody’s
upgrade of India’s rating and the massive recapitalisation plan for banks. This is a good opportunity to
further build on the confidence levels. Also, the government should look at further consolidating its
reform agenda in the forthcoming Union Budget 2018-19.
• FICCI COMMENTS ON WPI INFLATION DATA
(14 November 2017)
Both wholesale and retail prices edged up in the month of October. The increase was led by firming up of
food prices with vegetables segment remaining a key stress point at this juncture. However, this is due to
adverse weather conditions and the situation should ease out in the coming months, said FICCI.
FICCI would like to reiterate that under the present scenario inflation targeting by the central bank may
not be the best approach. The manufacturing sector is showing signs of recovery and it is important to
support this improvement through all policy levers. The high real interest rates remain a challenge for the
industry. The various measures undertaken by the Government to promote agriculture and agro-
processing are a step in the right direction. These should be taken forward with greater vigour. It remains
extremely critical to create seamless agri-value chains and agri-infrastructure in the country to minimize
wastage and maximise efficiency. Furthermore, agriculture market reforms with regard to APMC Act and
e-NAM’s should continue to be encouraged.
FICCI’s Voice – SG’s Desk is a service to all our members and also shared with key policy makers and
thought leaders. The document is a compilation of FICCI’s views on macro-economic issues that
confronts the nation. These issues come to us directly from members, or through deliberations in
conferences, seminars etc. on sectoral issues, as also through Government notifications.
** This issue of FICCI’s Voice is a compilation of issues for the month of November 2017
DECEMBER 2017

2. • FICCI’S ECONOMIC OUTLOOK SURVEY
(27 November 2017)
According to the results of FICCI’s latest Economic Outlook Survey, GDP growth is expected to improve to
6.2% in Q2 of 2017-18 and further to 6.7% in Q3 of 2017-18. The slowdown in the economy due to
demonetisation and the adjustment impact of GST implementation seems to be bottoming out and as the
new indirect tax regime stabilizes, the economy would see an improvement in its performance. This view
was expressed by the economists who participated in the latest economic outlook survey conducted by
FICCI.
The steps taken by the government to reduce the compliance burden related to GST and make its
implementation smoother, the comprehensive plan announced for recapitalisation of the banks and the
thrust laid on the infrastructure sector have been acknowledged by the survey participants as an
indication of government’s clear resolve to address the key issues that are hobbling growth.
Even as these steps are taken by the government, the economists emphasised that reviving consumption
particularly in the rural and semi-urban areas will be important to give a boost to overall demand in the
economy. With the supply chains being impacted more in these areas compared to the urban areas,
greater attention here was called for. In this context, it was emphasised that projects such as ‘housing for
all’ and ‘electricity for all’ should be expedited as these would improve employment prospects in the rural
areas and thereby help improve demand. Strengthening of the agri-supply chains and diversification in
the rural areas in terms of the economic activities pursued were also mentioned as steps to improve
performance of the economy.
The participating economists also mentioned that the government should continue with its emphasis on
productive capital investments in the social and physical infrastructure space, even if this requires some
calibration of the fiscal deficit target. The projected fiscal deficit number for the current year is likely to
be slightly higher at 3.3% according to the economists polled by FICCI.
• FICCI WELCOMES THE DRAFT TEXTILES POLICY OF UP GOVERNMENT
(28 November 2017)
FICCI welcomed the draft Textiles Policy of UP which shall set the vision for the sector in the State. Prior
to the release of the draft policy, FICCI had submitted detailed suggestions to the UP Government for
formulation of a vibrant and competitive Textiles Policy.
It is heartening to see that many of the suggestions submitted by FICCI like open access for existing as well
as new units, capital subsidy for new and existing units over and above TUFS, interest subsidy over and
above Central Government’s subsidy for technology upgradation have been included in the draft Policy.
All this would help in attracting investments in the sector in value added segments.UP has abundant
labour force that currently is largely employed in the industry outside the State. This policy has the
potential to provide jobs to millions of natives as it is a labor intensive sector.

3. • NEED TO HAVE AT LEAST A MINIMUM PROVISION OF WATER TO INDUSTRY
(28 November 2017)
FICCI emphasized on the need for a holistic approach and driving change in a different way. There is a
need to have at least a minimum provision of water to industry to be able to even recycle and reuse it;
usage of irrigation water more efficiently; and freeing up good quality water for drinking purposes. About
improving urban water use efficiency as a key solution to India’s short-term and long-term water
challenges; and to shift the focus to a scenario where there is shared vision and responsibilities for water
augmentation, greater accountability, an incentive framework for going beyond compliance, and a
coordinated approach to water supply and management. Water has to be seen as a resilience issue.
A five-point action agenda recommended by the FICCI Water Mission towards a holistic and integrated
approach is:
1) Constructive dialogue between stakeholders and to a framework of collaborative thinking,
planning, and execution;
2) An enabling policy environment that recognises and rewards good practices and innovative
applications, and enables scaling up and replication;
3) Policy framework should incentivise innovative technologies and sustainable business models in
wastewater management;
4) Need to harness the potential of the private sector which can provide its expertise in project
management, innovation and replication of success stories; and
5) Enabling environment and supporting ecosystem for a market for wastewater is the need of the
hour to dovetail the agriculture-industry-urban nexus for water and wastewater management
through a circular economy approach.
• FICCI STATEMENT ON THE LATEST DIRECTION OF THE SUPREME COURT RESTRAINING
PROMOTERS FROM ALIENATING PERSONAL PROPERTIES
(24 November 2017)
The latest direction of the Supreme Court restraining promoters of an Indian company from alienating
personal properties in a matter pertaining to a corporate litigation comes as part of a series of such judicial
pronouncements that may impinge on the concept of Limited Liability as defined by law. While all those
who transgress the bounds of law should be legitimately punished under the laws of the land, violating
the principle of Limited Liability can have negative consequences for entrepreneurship and business
development in India. Apart from giving due consideration to the principle of Limited Liability, judicial
pronouncements should also give due regard to the difference between secured and unsecured
liabilities. FICCI hopes that as a respected and hallowed institution the judiciary would pay due attention
to the economic consequences of judicial pronouncements.
• ELECTRIC VEHICLES ARE ECONOMICALLY & PRACTICALLY VIABLE FOR OUR CITIES AS A MODE OF
TRANSPORT
(20 November 2017)
FICCI highlighted the focus on building a sustainable, digital and integrated mobility ecosystem. The new
business models and disruptive technologies in the field of mobility are going to bring about a significant
change in our daily lives through effective mobility management and our government’s efforts to embrace
this future-oriented mobility ecosystem will go a long way in making our country the hub of smart mobility
in the world.

4. FICCI will coordinate with the government and the industry on devising a roadmap for transition to smart
mobility through stakeholder meetings, policy representation to the government and by working on in-
house research reports for dissemination of required information to the stakeholders.
• FICCI TO LEVERAGE TECHNOLOGICAL EXPERTISE OF THE CORPORATES TO COME UP WITH
POSSIBLE SOLUTIONS
(17 November 2017)
Role of technology is very important in ensuring implementation of road safety rules, catching violation,
and punishing offenders, said FICCI. All nations across the world are committed to bring down road
fatalities by 50%, however in India it has been increasing rather than coming down. We need huge
behavioural shift in the mind-set of people to take collective responsibility in ensuring road safety at every
level. Traffic problem is everyone’s problem. It is our own responsibility to follow the rules and respect
others on road as well.
• FICCI COMMENTS ON THE MOODY'S UPGRADE OF INDIA'S RATING
(17 November 2017)
Moody’s upgrade of India’s rating is a reaffirmation of the various reform measures undertaken by the
government over the last three to four years and we welcome this move, said FICCI.
The ratings upgrade along with the recently reported improvement in India’s ease of doing business
ranking underline the fact that we are moving in the right direction. India’s growth story is more promising
than ever and we see a further improvement in confidence level of global investment community. This
move will not only give a further push to foreign investment inflows into the country but will also enhance
our prospects of borrowing money abroad at better rates.
The Government’s approach towards reforms has been holistic. The commitment towards assuring a
conducive environment for businesses and various measures undertaken for financial and social inclusion
are noteworthy. Also, the agility with which the Government has been working towards identifying and
ironing out impediments to growth has been remarkable. The Government has been constantly reviewing
the Good and Services Tax post implementation to ensure a smooth transition. Further, the recently
announced recapitalisation package for banks along with the earlier announced measures will expedite
the resolution of stressed assets making space for fresh investments to kick in. The positive impact of all
these measures will be seen in the next few years and we see India moving towards a higher growth
trajectory.
• FICCI’S FOOD SERVICE RETAIL CONCLAVE ‘FOODZANIA- 2017
(14 November 2017)
Foodzania is the initiative by FICCI Food Service Retail Task Force which was formed to address the issues
faced by the stakeholders in the sector. The Indian F&B sector is poised to witness a sea change. The
recent times have seen significant discussions in this sector, which has led to a major reform of allowing
FDI in multi-brand retail in India. This is anticipated to bring some game changing impact on the modern
retail sector in India and nation at large.

5. However, it is not a one stop solution to address the challenges of this huge industry. Various issues like
Infrastructure bottlenecks, multiple laws and regulations, skill gap etc. still remains a key concern and
there is need to deliberate on these ground realities.
The Government has allowed 100% FDI for trading including through e-commerce, in respect of food
products manufactured or produced in India. 100% FDI is already permitted in manufacturing of food
products through automatic route. This will provide impetus to the foreign investment in food processing
sector, benefit farmers immensely and will create vast employment opportunities. This has enhanced
investment opportunities in India globally and have generated interest among the leading world food
retailers for making investment in India. I am confident that this conference will come forward with new
ideas that will boost the growth of the F&B sector, at the same time, enhance consumers’ welfare.
• GOVERNMENT SHOULD GRANT INDUSTRY STATUS TO THE FOOD SERVICES SECTOR
(14 November 2017)
Underlining the importance of the Food Services sector, FICCI said that India’s overall retail opportunity is
substantial, and coupled with a demographic dividend (young population, rising standards of living and
upwardly mobile middle class) and rising internet penetration; strong growth in retail & e-Commerce is
expected. The Indian government’s ambitious Make in India, Digital India, and Start up India project is
indeed giving a great stimulus to the food services retail sector. It is imperative for the Government and
regulators to recognize the contribution and role of Food Services Industry and take measures to create
positive policy framework for industry’s growth.
• PRIVATE SECTOR TO CONSIDER RECOGNITION OF PRIOR LEARNING TO SKILL AND UPSKILL
PRIVATE SECURITY WORKFORCE
(10 November 2017)
FICCI stated that the government should authorise more institutes to skill and upgrade manpower in the
private security sector. The minimum qualification for becoming a constable in the police force was 12+,
but the private security industry was providing employment opportunities to the youth at the grass root
level, even to those who had completed only 7th or 8th
standard. There was a need to make skilling robust
for private security sector as it was lagging behind.
FICCI said that the government had not been able to fulfil the security needs of the nation creating a
vacuum in the system. This became a business opportunity for the private sector and now the private
security industry was meeting the demands of the market. He added that public policy, enforcement of
the Private Security Agencies (Regulation) Act (PSARA), availability of skilled manpower, licensing and
compliance requirements, were some of the challenges that needed to be addressed.
• BETTER EDUCATION WOULD FACILITATE IN CREATING A BETTER TALENT POOL FOR INDUSTRY
(9 November 2017)
FICCI said that the student is the epicenter in Education 4.0 which is giving way to personalized learning
with the use of collaborative technology. Education institutions and regulatory framework have to
embrace 4.0 technologies and processes. Besides, flexible regulatory framework and academic, financial
and administrative autonomy are imperative for higher education going forward.

6. The emphasis has been on teaching and not on learning which needs to change in India. The education
sector is undergoing disruptive changes with the advent of new pedagogy, assessment systems and
delivery of knowledge. Therefore, there is a need to focus on learning which is outcome and result-
oriented.
Emphasising the importance of quality education, FICCI said that better education would facilitate in
creating a better talent pool for industry. Thus, there is a need to create an enabling atmosphere where
the government, academia and industry could work in tandem and create synergies to take Education
4.0. forward.
• INDIA’S BUSINESS REFORMS: GOVERNMENT SHOULD ALSO CONSIDER REFORMS IN THE AREA OF
REGULATORS
(4 November 2017)
FICCI said that India’s Business Reforms only reflects the government’s determination to take bold and far
reaching reforms required to transform India into a New India as envisioned by The Prime Minister of
India.
Congratulating the Prime Minister for the significant improvement in India’s ranking, FICCI said that it
stands committed to Prime Minister’s aim of perform, reform and transform to place India amongst the
first fifty countries in terms of ease of doing business. There are number of areas where our rank may not
have improved significantly but at least the direction is there to make that process more efficient and
simpler in terms of compliance. Starting a business, construction permits, enforcing contracts, registering
property and other such areas needs improvement for the efficient functioning of the business
organisations. The Government should also consider reforms in the area of regulators as they impact the
cost as well as ease of doing business significantly.
For more details contact FICCI Membership
at tripti.kataria@ficci.com