The time to ‘Make in India’ is NOW

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ContentsVolume 38 No. 11 November 2016
cover story
15 The time to ‘Make in India’ is NOW
The ‘Make in India’ program has opened investment opportunities
across sectors. Two years after the launch of the Prime Minister's
visionary initiative, there is visible momentum, energy and optimism.
Our cover story describes CII's forward-looking plans to boost
manufacturing in India, and shares success stories from the
specialty chemicals, textiles and electronics sectors.
POLICY PERISCOPE
05 Demonetization – A Boost to Investment Climate
06 Moving Towards GST
09 Improving the Ease of Doing Business
spotlight
10 India Economic Summit
mindspace
26 BRICS and BIMSTEC Summits
focus
33 Cold Chain: Enabling the 2nd
Green Revolution
plus...
sECTORSCAPE
portfolio for
excellence
engaging with
the world
REGIONAL REVIEW
... AND MORE

Communiqué November 2016 | 3
I
ndustry has pledged to partner with the Government
to tackle the hazard of air pollution. Towards this,
CII is launching a Clean Air - Better Life campaign,
. The CII initiative will engage business,
civil society and Government to learn from peers and
take actionable steps to improve the air quality and
reduce air pollution in Delhi NCR.
The specific objectives of the Swachh Vayu-Dirghayu
are to:
• Develop an integrated approach that brings together
policy-makers, industry, academia, community and
civil society
• Build consensus and get a buy-in from stakeholders
on actions for improving the air quality in NCR
• Deliver voluntary commitments from stakeholders
towards reducing air pollution
• Influence adherence to existing policies and advocacy
towards newer policies.
Concerned about the severe air pollution in the National
Capital Region in recent days, which affected normal
activity such as schools, construction activities, and led
to a ban on diesel generator sets, among others, CII
has presented several recommendations on working
towards cleaner air. These are:
• Soil and road dust contributes 26% of Particulate
Matter (PM) 2.5 in summer in Delhi, according to
a report by IIT Kanpur. CII recommends collecting
soil and road dust by vacuum cleaning and using it
for filling low-lying areas.
• Burning of straw leads to 26% of PM 2.5 in winter
and 12% in summer in Delhi.The Government should
incentivize the use of ‘happy seeder’ to convert rice
straw into mulch as fertilizer. Biomass and agri-waste
may be used in biomass plants or as raw material
for the pulp and paper industry. This will incentivize
farmers to reduce burning.
• Vehicles which contribute 25% to ambient PM 2.5
levels require various actions such as retrofitting
of diesel vehicles, zero-idling by public, school and
defence vehicles, and promoting non-motorized
transport. The high excise duty on ethanol may
also be reduced and more tenders floated by oil
marketing companies, to encourage ethanol-blended
clean fuel.
• Industrial sources of pollution include thermal power
plants, foundries, ready-mix concrete plants, and
fly-ash, among others. Commercial establishments
and hotels using coal also contribute to air
pollution. These should be encouraged to switch
to cleaner fuels. The construction industry should
use water sprinkling, curtains and dust suppression
units. Diesel generator set emission norms need
to be enforced.
initiative
environment
CII Swachh
Vayu-Dirghayu
Initiative

T
he bold and courageous move by Prime Minister
Narendra Modi of ceasing five-hundred and
thousand rupee notes as legal tender strikes
at the heart of corruption, black money and money
laundering. With a single stroke, the Prime Minister
has taken action against the parallel economy in the
country and encouraged greater formalization of the
economic processes.
Corruption is widely recognized as akin to a levy on
economic activity and impacts the poor and middle class
sections of society disproportionately. It also raises the
costs and risks of doing business, and its corrosive nature
affects the overall business environment of a country. As
Prime Minister Modi said in his landmark speech, black
money accentuates inflationary tendencies, which, in turn,
push up interest rates and the cost of investments.
Estimates suggest that the underground economy in
India extends to as much as half the country’s GDP. It
is also believed that tax evasion, money laundering, and
other illegal economic activities foster greater inequalities
while also detracting from the global competitiveness
of the nation. India ranks 76 out of 168 countries in
Transparency International’s Corruption Perception Index
2015, a shift up from 94th
position in 2013.
Since assuming charge, the Government led by Prime
Minister Modi has issued several campaigns to tackle
black money such as the agreement with Mauritius,
disclosure law regarding foreign holdings of unaccounted
wealth, and the income disclosure scheme, among
others. Taken together with the recent actions for
introducing the Goods and ServicesTax (GST), promoting
digital financial inclusion through the Jan Dhan Yojana,
and expansion of the direct benefits transfer scheme,
we believe that this is a transformational step in
governance.
Further, the informal economy which largely operates
on cash transactions can be discouraged through this
measure. With wider use of smart phones, hand-held
devices, and the internet, it could be possible to
minimize cash transactions, which would allow tracking
of unaccounted money.
In turn, this could be positive for extending the tax net
and garnering more resources for the Government. Such
added revenues would contribute to developmental
efforts as also expand social security schemes, thereby
helping in the campaign for poverty alleviation and
boosting incomes.
Inflationary pressures are likely to subside with this
strong action on demonetization of large currency
notes. Hoarding and black marketeering would also be
discouraged as it is unlikely that the same volume of
cash would be able to enter the system in the future.
For legitimate businesses, especially large enterprises,
there may be short-term disruption and inconvenience.
In the longer term, these would be smoothened out.
With more transactions coming online through the GST
platform, there would be more incentive to phase out
cash transactions.
For small businesses, traders, and farmers, there is
need to increase accessibility to formal finance avenues
to undertake daily activities. They should have access
to banks within convenient distance, to deposit the
day’s revenues. Households, especially those in remote
areas, should also be linked effectively to banks.The Jan
Dhan Yojana, which has opened more than 220 million
accounts, would be a big game-changer.
In the initial phase of the transition, there may be a likely
impact on deflation, especially in the sectors which see
large cash volumes, as the black money is sucked out of
the system. Care must be taken that this is temporary
and does not become entrenched. One way would be
to encourage higher capital investments by public sector
enterprises which have available funds.
This masterly measure restores huge confidence in
Indian industry that the Government will not shy away
from difficult decisions to transform the nation, and
will continue to take action on reforms. Indian industry
strongly welcomes the move and pledges to assist in
its implementation.
Demonetization
A Boost to Investment Climate
POLICY PERISCOPE
economy
Demonetization is a transformational step in governance,
says Dr Naushad Forbes, President, CII
This article by Dr Naushad Forbes, President, CII, and Co-Chairman,
Forbes Marshall, was first published in the New Indian Express on
9 November 2016.

6 | November 2016 Communiqué
S
oon after assuming charge, Prime Minister
Narendra Modi pledged to improve the business
climate in the country. This was the first time
that ‘Ease of Doing Business’ was accorded such
high importance as an economic strategy. Industry has
greatly appreciated the Government’s mission mode
engagement on building an easier and more facilitative
business environment.
The recent World Bank Doing Business Report for 2017,
which indicated that India’s ranking among 189 countries
barely went up from 131 to 130, is somewhat surprising,
given the hectic activity underway to improve the
business climate.The report focuses on the administrative
procedures and time taken for ten defined parameters of
the business cycle, from starting a business to obtaining
credit, and exiting through insolvency. From 2014, India’s
ranking has improved by 12 positions. In two parameters,
‘getting electricity’ and ‘enforcing contracts,’ the country
has been ranked higher than in the previous report. In
three others, ‘starting a business,’ ‘registering property’
and ‘resolving insolvency,’ India came in at the same
rank as last year, while in the remaining five fields, the
country's rank has fallen.
Over the last two years, the Government has instituted
comprehensive reforms across a number of areas,
including company incorporation, tax procedures and
dispute resolution, land allocation, environmental and
forest clearances, and getting public utility connections,
apart from many others. Digital technology has been
leveraged to place more and more procedures online,
and make processes time-bound and transparent. Some
actions have been taken particularly for micro, small
and medium enterprises, especially on compliances
and inspections.
The State Governments have identified land banks to
set up industrial parks and are moving forward rapidly
on hand-holding investors and facilitating procedures
through single window systems, online interface, and
easier inspections. Many States are holding mega
investor meetings to showcase their reforms and
highlight sectors of opportunity for investments.
The World Bank report does not adequately capture
these changes. To begin with, it currently looks at
reforms in just two cities, Delhi and Mumbai. In
addition, some major reforms such as legislation of the
transformational Goods and Services Tax (GST) and the
institution of the Insolvency and Bankruptcy Code came
after the deadline of 1 June. The report also does not
include some steps that were taken before the deadline
in these two cities.
Further, the World Bank’s remit does not include the
broader dimensions of what constitutes the entire
investment climate, including openness to foreign
investment, capital movement, the legal system, and the
overall stability and orderly conditions of an economy.
India is currently among the top three most attractive
investment destinations, according to UNCTAD. The
country has lifted its ranking in the Global Competitiveness
Report of the World Economic Forum by 16 positions
this year, and jumped up 19 slots in the World Bank’s
Logistics Performance Index. The country has attracted
more than $100 billion worth of FDI between April 2014
and March 2016, the highest in any two-year period.
Industry has long been calling for simpler, more
transparent and time-bound administrative procedures
and processes. Clearances and approvals for public
utilities, environmental compliances, and other regulatory
measures are often complicated and take time, adding
uncertainty to business plans and raising costs. The
thrust of this Government on the ‘Ease of Doing
Business,’ initially as a part of the ‘Make in India’
campaign from 2014, and later as a mission by itself,
is most welcome and timely.
The Department of Industrial Policy and Promotion (DIPP)
and the World Bank, along with industry associations
such as CII, undertook a comprehensive exercise
to identify and address the pain points for industry.
Recognizing that many of the areas fall under the
domain of the State Governments, the DIPP last year
brought out a list of 98 parameters on which the States'
business procedures were assessed. It was found that
the highest achievement score was about 71%, with
Gujarat at the top.
From the next year, DIPP expanded the list of areas
to be taken up by the States to 340, and undertook
real-time monitoring with the State Governments as
willing partners. Today, ten States have achieved over
90% of the tasks, and 17 have achieved over 80%.
This is a huge improvement and has resulted from the
States taking up reforms wholeheartedly in the spirit
of competitive and cooperative federalism.
At the ground level, both domestic and overseas
industry have certainly experienced positive changes
in the investment climate.
POLICY PERISCOPE
india inc
Improving the Ease of Doing Business

T
he Model Goods and Services
Tax (GST) Law suggests multiple
registrations in each State for
the supply of goods and services.
“This has the potential to result
in a huge burden of complexity as
companies operate in many different
States. For businesses in the services
sector such as telecom, banking,
insurance, airlines, and e-commerce,
which undertake pan-India operations,
meeting the requirements of each
State through different registrations,
audits and compliances would be a
massive task”, said Dr Naushad Forbes,
President, CII, and Co-Chairman,
Forbes Marshall. He suggested that a
centralized registration system should
be instituted under GST. The States
could be offered credits through the
Integrated GST (IGST) mechanism.
Such a system would greatly simplify
the ease of doing business and
foster better tax compliance, felt Dr
Forbes.
On multiple GST rates, CII has said
that the GST rates structure can be
the absolute limit of four rates as
suggested by the Government, and
over time, the Government should
commit to converge to one or two
rates. Further, CII has said that it is
important that the bulk of goods and
services should fall within the standard
rate of 18%, and only exceptions should go to the higher
rate of 28%, with a lower rate for essential goods such
as unprocessed food items, etc. CII agrees with the
proposal that the higher rate of 28% should apply only
to ‘demerit goods’ and the term ‘luxury’ goods should
not be used to define this category.
CII has suggested that the cess needs to be levied only
at the final product, and that the total tax, including
cess, on demerit goods, should be kept within the
present overall indirect tax incidence.
Moving Towards GST
The GST Law does not clarify
whether the administration of GST
for assessment and audits is to be
undertaken by the Central Government
or by the State Governments. “It
would be challenging for companies
to meet the requirements of dual
administration by both the Central and
State Governments, while maintaining
consistency across different filings.
Likewise, it could be an additional
burden for the administration in terms
of duplication and costs. There should
be a single administration process,
either by the Center or the State,
which would be acceptable to both.
This would action the intention of
making India a common market with
single audit and assessment,” said
Dr Forbes. He added that for all
purposes of calculating taxes under
GST, only the invoice value should
be considered.
Dr Forbes also commented on issues
relating to the transition to GST.
“Transition is expected to entail a
period where companies have higher
inventories and it is necessary to deal
with these stocks of goods in terms
of applicable tax. The GST Law does
not clearly specify if credit is available
on excise duty and central sales tax
paid on inventories of domestic goods,
and on countervailing duty (CVD) paid
for imported goods. Clarity on this aspect needs to be
provided,” he said.
Introducing a national tax reform of the magnitude that
impacts every consumer and millions of producers is
certainly not an easy endeavor. “We commend the
Central and State Governments for strong commitment
to the GST. In turn, CII pledges to partner with the
Government to ensure smooth, hassle-free, and efficient
roll-out of the GST so that all stakeholders derive the
maximum benefit,” stated Dr Forbes.
POLICY PERISCOPE
taxation
A centralized registration system under GST would make doing business easier,
and foster better tax compliance
The implementation of the Goods
and Services Tax (GST) crossed
another major milestone when the
GST Council, in its meeting on
3 November, approved the GST
rate structure of 5,12,18 and 28%.
The constitution of a committee to
fix item-wise rates has also been
announced.
• 5% rate is likely to be applied to
goods which at present attract nil
excise duty and 5% VAT, and there
would not be any increase in tax.
• 12% rate is expected for goods
which currently attract 6% excise
and 5% VAT.
• 18% rate is likely for items of
common use such as toothpaste,
soap, detergents, fans, electric
irons, etc. These goods at present
have excise of 12.5% and VAT of
12.5 to 14.5% in different States.
Most of the taxable goods will fall
in this slab, and the tax on such
items is expected to reduce.
• 28% rate is for demerit goods,
high-end automobiles and some
luxury goods. In addition, cess
would be levied on some goods
falling under the 28% slab.
GST update

spotlight
india and the world
T
he India Economic Summit, convened under the
theme, ‘Fostering an Inclusive India through Digital
Transformation,’ was jointly organized by CII and
the World Economic Forum (WEF) on 6-7 October in New
Delhi. Over 500 leaders from Government, business,
academia and civil society, from India and overseas,
discussed and debated issues of national and regional
importance under three key thematic pillars:
• Mastering the Fourth Industrial Revolution: The
focus was on India becoming an innovation-driven
manufacturing hub, the skills needed in the digital
age, digital platforms accelerating skill development,
policy-makers and regulators supporting technological
development while encouraging innovation, and on
balancing private investment in digital infrastructure
and content with national policy objectives.
• Driving Sustainable and Equitable Growth: The
focus was on identifying ways to ensure food
and nutrition security for 1.25 billion Indians, the
solutions needed to make India’s growing youth
employable, agriculture and land development driving
growth while preserving India’s diverse ecosystems,
innovative partnership models to help achieve rapid
growth in the new and renewable energy sector,
and sustainable infrastructure to support the massive
wave of urbanization that Indian towns and cities
are witnessing.
• Improving the Ease of Doing Business: The
focus was on public-private partnership models
to help bridge the infrastructure and investment
deficit, streamline cooperative federalism, drive
labor reforms to build an enabling environment for
business, and reduce the burden of regulation for
both Government and industry.
The discussions at the Summit recognized that this
is an important inflection point for India, where it can
ensure that its economic growth is more broad-based
and socially inclusive, and also lead from the front on
the Fourth Industrial Revolution to benefit its people.
Addressing the opening plenary, Mr Ranil
Wickremesinghe, Prime Minister of Sri Lanka, spoke
about India and China being the destinations of choice
for global manufacturers, and Asia driving economic
growth for the rest of the world.
Ms Nirmala Sitharaman, Minister of State (Independent
Charge) of Commerce and Industry, India, described
the various initiatives and reforms being undertaken
by the Government to ensure sustainable growth of
8% for the next two decades.
The discussions at the Summit were steered by the
Co-Chairs:
• Anil Agarwal, Executive Chairman,Vedanta Resources,
United Kingdom
• Johan C Aurik, Global Managing Partner and Chairman
of the Board, AT Kearney, USA
• Gita Gopinath, Professor of Economics, Harvard
University, USA
• Amitabh Kant, CEO, NITI Aayog, India
• John Rice, Vice-Chairman, GE, USA
• Vijay Shekhar Sharma, CEO, One97 Communications,
India
Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce and Industry, India, with the Summit Co-chairs (L-R):John Rice,
Vice-Chairman, GE, Hong Kong SAR; Gita Gopinath, Professor of Economics, Harvard University, USA; Vijay Shekhar Sharma, Founder and
CEO, Paytm, India; Anil Agarwal, Executive Chairman, Vedanta Resources, UK; Amitabh Kant, CEO, NITI Aayog, India, and
Johan C Aurik, Global Managing Partner and Chairman of the Board, AT Kearney, USA, at the India Economic Summit in New Delhi
India Economic Summit

spotlight
We need to work harder with the States to remove
all regulatory hurdles still prevailing at the lower
levels. Across the country there is eagerness to see
brighter days. We need to find the areas where we
can come together, remove obstructions, and move
forward. The use of technology, transparent processes,
and ease of doing business will help India pull off 8%
growth over the next couple of decades.
Nirmala Sitharaman, Minister of State
(Independent Charge) of Commerce and Industry
India and China are the only countries that can drive
economic growth across the globe. Manufacturing
companies have no other place to go to. Asia will bail
out the world if it is allowed to frame the rules.
Ranil Wickrememsinghe, Prime Minister of Sri Lanka
Change cannot be a compulsion. It has to happen
organically. Legislation has a certain jurisdiction.
It cannot change mindsets and hearts. Many women
don’t use gender as a crutch.
Smriti Irani, Minister of Textiles, India, (talking about
breaking down diversity barriers)
The greenfield capital city of Amravati will figure
among the top 5 in the world and be an international
benchmark.
N Chandrababu Naidu,
Chief Minister of Andhra Pradesh
V O I C E S
Row 1 (L-R):
Ranil Wickremesinghe, Prime Minister of Sri Lanka
Nitin Gadkari, Minister of Road Transport & Highways, and Shipping
Suresh Prabhu, Minister of Railways
Ravi Shankar Prasad, Minister of Electronics & Information Technology
Smriti Irani, Minister of Textiles
Nirmala Sitharaman, Minister of State (Independent Charge)
of Commerce and Industry
N Chandrababu Naidu, Chief Minister of Andhra Pradesh
Row 2 (L-R):
Jayant Sinha, Minister of State of Civil Aviation
Amitabh Kant, CEO, NITI Aayog, and Summit Co-chair
Manish Sisodia, Deputy Chief Minister of Delhi
Ramesh Abhishek, Secretary, Department of Industrial Policy and
Promotion (DIPP), Ministry of Commerce and Industry
Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall
Chandrajit Banerjee, Director General, CII
The only way India can catch up with the developed
world is to leapfrog by using digital technology. India
needs to bring about radical restructuring of its health
and education systems if it is to grow at a sustainable
rate of 8% for the next three decades.
India’s start-ups will disrupt the world. They will disrupt
heath and education. They will do a lot more social
innovation. E-commerce in India is a $25 billion market
right now…I can say with confidence it will become
$300 billion by 2025.
Amitabh Kant, CEO, NITI Aayog, and
Summit Co-chair
Over 90% of FDI is coming through the automatic
route, and the Commerce Ministry is further
relaxing the FDI regime. Huge potential exists in India
to attract FDI, and the Government is implementing a
series of transformative actions and policies to realize
this potential.
Ramesh Abhishek, Secretary, DIPP
India’s mission should be to ensure sustainable and
inclusive growth. To achieve this, it will have to ensure
to invest in the right things, including the creation of
basic infrastructure and skilling a million of its workforce
every month. You can’t do it if you have 200 million
people without electricity.
John Rice, Vice-Chairman, GE, and Summit Co-chair

spotlight
Topic a l T a kes
Regional Economic Integration in South Asia
Political divisions rooted in historical relations between
South Asian countries still constitute the greatest
obstacle to regional economic integration. For greater
prosperity stemming from cooperation, South Asian
leaders have to look to the future and stop being held
back by their history. As such, international politics and
geopolitical considerations remain an obstacle rather
than an opportunity for growth.
Malik Samarawickrama, Minister of Development
Strategies & International Trade, Sri Lanka
India’s Growth Engine: Manufacturing
In the last four years, about 1,500 multinationals have
relocated their global innovation centers to India, with
most of the innovation focused on the automotive
industry. India needs to expand its innovation reach
to a wider range of manufacturing sectors, such as
defence, electronics and hardware, to create jobs and
drive growth.
The Indian States have become more competitive,
with political leadership driving growth. It is critical that
these States become ‘champions’ of manufacturing,
unleashing a power that will enable India to become
a great manufacturing nation.
Amitabh Kant
India Economic Update
Only through improved quality of education will India
be able to tackle the rising inequality associated
with its recent economic growth pattern. The rising
numbers of students in private schools are testimony
to the fact that Indians are recognizing the large payoff
and benefits of a better education. It is now up to the
Government to improve education outcomes from public
institutions as well. These education outcomes need
to be measured by evaluating the skills necessary for
today’s economy.
Gita Gopinath
India’s Fourth Industrial Revolution
In many countries, laws restrict the ability of
companies, to move data around the world, even
though it could have potential value for making
machinery more efficient. Balancing the need for
access with privacy and security concerns is an area
where Government can help.
Every industrial revolution brings dislocation. Companies
and countries both need to figure out whether this will
involve reskilling, repurposing, retraining, or other forms
of capacity-building. But there is not enough recognition
of this among policy-makers.
John Rice
Reforms should continue in the areas of improving
competitiveness, ease of doing business, and
infrastructure, with the focus on outcomes in education
and health. Also, the pace of reforms should not trip
around elections, if India is to grow at a sustainable
rate of 8% and more.
Gita Gopinath, Professor of Economics, Harvard
University, and Summit Co-chair
The RBI decision to cut the repo rate by a quarter of
a percentage point to 6.25% heralds a transition to
a low interest rate regime that will lay the foundation
for 20 years of growth.
Dr Naushad Forbes,
President, CII, and Co-Chairman, Forbes Marshall
We need to make sure that whatever India
consumes, we start producing, be it in defence
or in any other sector.
Baba Kalyani,
CMD, Bharat Forge Ltd
Land and labor reforms are very, very important for
industry, for manufacturing. Right now, both are
inconsistent. For expansion, it is so difficult to get land.
For expanding manufacturing, the capacity in labor is
extremely important. Going forward, in my mind, the
efforts required by the Government are happening. I
am very confident that the next 25 years are going to
be India’s years.
Pawan Munjal,
Chairman, MD & CEO, Hero MotoCorp

COVER STORY
manufacturing
T
he ‘Make in India’ program was launched by
Prime Minister Modi in September 2014 to
transform India into a global manufacturing
hub. The program set out ambitious goals for
the manufacturing sector. These were:
• An increase in manufacturing sector growth to
12-14% per annum over the medium-term.
• An increase in the share of manufacturing in the
country’s GDP from 16% to 25% by 2022.
• Creation of 100 million additional jobs by 2022 in
the manufacturing sector.
• Creation of appropriate skill sets among rural
migrants and the urban poor for inclusive growth.
• An increase in domestic value-addition and
technological depth in manufacturing.
• Enhancing the global competitiveness of the Indian
manufacturing sector.
• Ensuring sustainability of growth, particularly with
regard to environment.
Two years down the line, it is a good time for some
stock-taking in terms of milestones achieved. Today,
India’s credibility is stronger than ever. There is visible
momentum, energy and optimism. ‘Make in India’ has
opened investment opportunities across sectors.
This cover story looks at success stories from the
specialty chemicals, textiles and electronics sectors.
These sectors have achieved one or more key
milestones, such as employment generation, skill
enhancement, higher production in India, improved
ease of doing business in India, and increase in
FDI.
For instance, between September 2014 and November
2015, the Government received `1.20 lakh crores worth
of proposals from companies interested in manufacturing
electronics in India. India now allows 100% FDI under
the automatic route in the chemicals sector. The last
20 items that were reserved for micro, small and
medium-scale enterprises were de-reserved in April
2015, opening these areas for greater investment.
Government initiatives towards upcoming Petroleum,
Chemicals and Petrochemicals Investment Regions
(PCPIRs) and plastic parks are expected to provide
state-of-the-art infrastructure for the chemicals and
petrochemicals sectors. A `6,000 crores special package
was announced for the apparel sector in June 2016.
Once fully rolled-out, it has the potential to create one
crore new jobs, attract investments worth $11 billion,
and generate exports worth $30 billion in the next
three years.
We also share the initiative of the CII Manufacturing
Council to identify ‘champion’ manufacturing industries
that could be top industries globally in the next 10
years, and have the potential to drive double digit
growth in manufacturing, and contribute to significant
job creation.
Indeed, the Indian manufacturing story is witnessing
an unprecedented impetus. Clearly, the time to ‘Make
in India’ is now.
The time to
‘Make in India’
is NOW

I
ndia is the 9th
fastest-growing nation in the world,
with a GDP growth rate of 7.4% in 2015, according
to the IMF World Economic Outlook (April 2016).
Manufacturing is at the heart of India’s economic activity,
providing a powerful multiplier effect. Manufacturing
production processes increase the demand for raw
materials, energy, and construction, as well as for
services, from a broad array of supplying industries,
leading to a healthy growth in output and employment
creation. In fact, as per the Government of India’s
National Manufacturing Policy 2011, ‘Every job created in
manufacturing has a multiplier effect of 2-3X additional
jobs in related activities.’
Manufacturing is thus rightfully at the center of the Prime
Minister’s vision for the ‘Make in India’ campaign. For the
target to increase the contribution of manufacturing to
GDP from the current 16% to 25% by 2025 to translate
into reality, the Indian manufacturing sector will have to
grow by at least 12.7% year on year. In 2015-16, the
manufacturing sector grew by 9.3%, while in 2014-15,
the annual growth rate was 5.5%. Achieving this high
growth trajectory (12.7%+ annual growth rate) will entail
an integral blend of policy interventions and firm-level
actions targeted at maximizing local value-add, creating
scale, capturing global market share, and fulfilling India’s
job creation needs.
‘Make in India’ has brought about a significant shift
towards local value-addition, sustainable innovation and
ease of doing business. It also aims at increasing federal
and State alignment for coherent policy-making, and to
position India as a global manufacturing hub.
In line with this evolution, CII believes that it is time
for the next phase of ‘Make in India’ or ‘Make in
India 2.0.’
The CII Manufacturing Council has been working on
an initiative to strategically identify specific ‘Champion
Industries’ which have the potential to be number 1
or 2 globally over the next decade, and contribute to
significant job creation.
CII initially identified a list of manufacturing sectors
that contribute majorly to manufacturing GDP, such as
aerospace and defence, auto and auto components,
cement, chemicals, engineering, ESDM, pharmaceuticals,
steel and textiles. Within these broad sectors, CII has
identified 156 sub-sectors that comprise the universe
of all major sub-sectors within these sectors. The
commercial and strategic attractiveness of each of these
identified 156 sub-sectors was analyzed across multiple
relevant factors. Commercial attractiveness includes
factors such as market attractiveness, competitive
landscape, supply chain ecosystem, ease of doing
business, favorable infrastructure, and human resource
capital. Strategic attractiveness includes factors such as
industry eco-system development.
On the basis of these factors, a detailed and extensive
comparative analysis was undertaken to identify 26
leading ‘champion’ industries. The industries selected
are: aircraft components, auto-electricals and electronics,
automotive batteries, heavy commercial vehicles,
passenger cars, two and three wheelers, cement, agro
intermediates, agro chemicals, basic polymers and
elastomers, construction chemicals, other performance
‘Champion Manufacturing
Industries 2025’
Targeted interventions to unleash the basic building blocks of
manufacturing, such as cost, technology, manpower, and a favorable policy
regime, can support the drive to champion manufacturing in India by
building global scale and market share, platform innovation, brand,
and sustenance, says Anant J Talaulicar
COVER STORY

chemicals, valves and pumps, construction machinery, machine
tools, pressure vessels, solar photo voltaic cells, lighting
(conventional and LED), mobile phones, printed circuit boards (PCB
and PCB A), bulk drugs, pharma APIs, generic pharmaceuticals,
flats, forgings and castings and longs.
For each of these industries, sectoral committees of CII have
identified key interventions that would help give a fillip to that
particular industry. Widespread consultations were held at each
step to ensure accurate articulation of the recommendations.
Common themes were identified that positively impact all of
manufacturing, as well as the targeted sectors.
CII believes that championing manufacturing in India entails
targeted interventions aimed at unleashing the basic building
blocks of manufacturing such as cost, technology, manpower
and a policy regime which, in turn, would support the drivers for
championing manufacturing by assisting in building global scale
and market share, platform innovation, brand, and sustenance.
Using this framework, CII has identified key policy interventions at
the overall manufacturing level, sector level and industry level. If
pursued, these interventions will trigger significant industry actions
translating to the creation of these champion industries, growth
in output (from the current average sales growth of 8-10% to 15-
20%), employment generation (from the current levels of 0-5%
to 5-10%) and increase in India’s share of global manufacturing
exports (from 1.6% currently to 3-4%) in the next 10 years.
Complementing the ‘CII Champions of Manufacturing’ initiative at
the industry level, is another initiative, the CII Recipe of Excellence,
which applies at the individual firm level. This is an online tool
developed by analyzing the performance of 32,000 companies.
It benchmarks competitiveness and excellence across six key
corporate functions – marketing, operations, supply chain, human
resources and leadership, research development and technology,
and environment sustainability and governance, to help identify a
company’s weakest set of links. Based on this analysis, individual
companies can take assistance from the various CII Centers of
Excellence to close their specific performance gaps. This process
can help companies become more competitive and enable them
to transition from good to great.
The CII Manufacturing Council is in the process of sensitizing
various stakeholders in Government, and has met with senior
officials from the NITI Aayog, Ministry of Finance, Department
of Commerce, Department of Industrial Policy and Promotion,
Department of Heavy Industries, Ministry of Steel, and Ministry
of Electronic and Information Technology. All the officials have
been very supportive of the initiative. After obtaining an broad
buy-in from the Government, the intent is to have an apex-level
Government-industry forum, to monitor the execution of these
interventions, and measure the results that are expected.
Anant J Talaulicar is Chairman, CII Manufacturing Council, and
Chairman and MD, Cummins Group India
Specialty
Chemicals:
An Emerging
Mega-trend
T
he $25 billion Indian specialty chemicals
industry has delivered 13% growth over
the past five years, led by domestic
consumption, according to industry reports.
Experts are betting on specialty chemicals
as one of the next mega-trends, and the
industry is expected to reach $70 billion by
2020. The industry has grown at a 30% CAGR
over FY13-15 to $2.67 billion. Going forward,
lower commodity prices will provide the much-
needed support to margins, and rising demand
will facilitate volume growth.
The Government’s 'Make in India' program
has enhanced the competitiveness of the
Chemicals sector in the country, by de-
licensing manufacturing for most chemicals, and
permitting 100% FDI.The upcoming Petroleum,
Chemicals and Petrochemicals Investment
Region (PCPIR) as well as the Plastic Park will
further provide state-of-the-art infrastructure.
The Government has been encouraging R&D in
India. It has also reduced the list of reserved
chemical items for production in the small
scale sector, thereby facilitating investments in
technology upgradation and modernization.
Global firms are gradually facing the heat of
COVER STORY
A conducive and
supportive framework
can help make India a
global manufacturing
hub for Specialty
Chemicals, says R Mukundan

compliance, cost and capacity
issues in other markets, and
are thus looking to outsource
their manufacturing processes
to India.
The structural shift towards
Indian specialty chemical
players is supported by the
country being more compliant
to environmental norms, with
stronger IPR protection and
a rich pool of knowledge
workers. This opens a
window of opportunities for
Indian firms over the next
5-10 years, impelling them
towards capacity-building,
which will help them grow
further.
Specialty and knowledge
chemicals are characterized
by a high degree of research,
intensity of intellectual capital,
and deployment of skilled
manpower.
Government support in the
form of a robust patent
framework, the presence of
appropriate regulations to
protect intellectual capital,
tax benefits and subsidies to
promote investments in R&D,
as well as green technologies,
is crucial for growth.
Furthermore, setting up of
specialized universities and
vocational training institutes
to develop a strong skills
base, removing redundancy
associated with multiple
regulatory bodies, and
simplifying registration
approval procedures, can
help in establishing India as
a strong global manufacturing
hub.
2nd
Indian Cement Conference 2016
‘Spurring Demand and
Accelerating Growth’
Over 200 participants
including industry
leaders, policy-
makers, users and
producers, gathered
together to construct
a shared vision for
building India through
cement, at the 2nd
I n d i a n C e m e n t
Conference 2016,
‘Spurring Demand
and Accelerating
G r o w t h .’ T h e
conference, held
recently in New
Delhi, focused on
creating effective collaboration between industry and the Government to
sustain the effective demand, and enable domestic industry to acquire globally
acclaimed production standards.
“Adequate measures are being taken by Government at the policy level
such as Housing for All, AMRUT and Smart Cities projects, which will create
sustained demand for cement in the construction sector…There will be an
addition of approximately 5 crore housing units in rural and urban areas which
will propel the demand for cement,” said Mr Amrit Abhijat, Joint Secretary,
and Mission Director, Housing for All, Ministry of Housing & Urban Poverty
Alleviation.
Mr K K Maheshwari, MD, Ultratech Cement Ltd, agreed that considerable
economic momentum has been generated in the construction sector. It is
the opportune time for industry to respond by utilizing existing capacities and
increasing it further, he said.
Earlier, welcoming the participants, Mr Ajay Kapur, Chairman, CII Cement Industry
Division, and MD & CEO, Ambuja Cement, informed that the cement industry has
tripled in size in the last 15 years. India is the second largest producer after China.
Recognizing the potential, CII has identified cement as a ‘champion’ industry which
can attain manufacturing excellence in India, he said, highlighting the need for
• Procurement under various Government missions and programs (eg Smart
Cities, Housing for All, Roads and Highways) to be undertaken on the basis
of life cycle cost of ownership. This would automatically spur the demand
for cement.
• With respect to emission norms, ‘day average’ should be considered. The
time for implementation may be relaxed till March 2019 (the current timeline
is March 31, 2017) as India has almost no experience in the required NOX
emission control technologies.
Dr Sujit Ghosh, Executive Director – Innovation, Dalmia Bharat
Cement Ltd; K K Maheshwari, MD, Ultratech Cement Ltd;
Amrit Abhijat, Joint Secretary, and Mission Director, Housing for All,
Ministry of Housing & Urban Poverty Alleviation, and
Ajay Kapur, Chairman, CII Cement Industry Division, and
MD & CEO, Ambuja Cement, at the
2nd
Indian Cement Conference 2016 in New Delhi
R Mukundan is Chairman,
CII Institute of Quality Advisory
Council, and
MD, Tata Chemicals Ltd
COVER STORY

COVER STORY
T
he Indian textile industry has strengths across the
entire value chain from natural to man-made fiber
to apparel to home furnishings. Its share in the
nation’s GDP is 6% and in exports, 13%. The sector is
the second-largest employer after agriculture.
After the phasing out of export quotas in 2005, India’s
export performance has been below expectations. The
dynamics of the market economy have thrown up both
opportunities and challenges to our domestic industry.
The Indian textile industry should gear up to attain its
desired position in the global market. The Government
is willing to provide all possible support by creating
enabling frameworks. Considering the targeted growth in
exports, India should be able to double its share of the
global textile and apparel trade from the present level
of 5%. India can achieve higher growth rates of finished
products such as apparel, home furnishing, and technical
textiles. This would maximize employment generation
and value creation within the country and realize the
Prime Minister’s vision of ‘Make in India’. Achieving the
ambitious vision of exports of $ 300 billion and 20% share
of global trade by 2024-25 is not going to be easy, and
is unlikely with a business-as-usual approach.
An important development in the global textile trade is
the fall in China’s predominance, which presents a ray
of hope for India to up its market share. However, the
fast emergence of new textile manufacturing hubs like
Vietnam and Bangladesh can upset India’s calculations
in a changing market, driven by market access and the
policy support given by the respective governments
to empower the textile chain. Also, emerging regional
trading agreements can script a paradigm shift in future
trade and investment flows.
In a dispensation where inclusive growth has been
assigned supreme importance in the policy framework,
Opportunities and Challenges in
the Textiles and Apparel Sector
the development of the textile segment in India is
not only socially significant in terms of creating more
employment opportunities, women empowerment
and eradication of poverty and destitution, but also
a harbinger of growth in terms of enhancing national
income, exports, and entrepreneurship, given that some
segments in the textile chain are capital-light and have
less gestation period for commissioning the project.
India should aim to strengthen the textile value chain.
Out of its total exports of textiles and apparel, more
than 50% is contributed by textiles. The scope of value-
addition is higher in downstream activities like fabric
processing and weaving.
India can realize the full potential emerging in the global
textile market if the Government provides a long-term
strategy to support the entire textile value chain. The
key issues that need attention are lack of scale, lack of
market access, infrastructure constraints, and high input
costs, which are adversely affecting the competitive
strength of the industry.
Further, India has to work towards eliminating trade
barriers, and needs to take measures to expand market
access. For instance, the biggest challenge that the
apparel industry is facing today is the cost disadvantage
across major markets. India’s competing countries have
zero duty access in these markets.
The recent apparel package and key structural labor
reforms are path-breaking measures. I hope that
the ‘Make in India’ initiative and the robust policies
unleashed by the Government will help Indian industry
increase domestic investment and expand its share in
the global market.
Sachit Jain is Co-Chairman, CII National Committee on Textiles,
and Joint Managing Director, Vardhman Textiles Ltd
The textile segment in India can be a harbinger of inclusive growth,
says Sachit Jain

T
he Transmission Line industry has
grown at around 9% over the last
5 years. It successfully caters to
not only domestic demand but also global
demand, enjoying acceptance by countries
across the globe, including Africa, Latin
America, CIS and SAARC countries.
There has been a healthy growth in the
transmission sector during the 12th
Plan
period (2012-17). After April 2012, India has
added 90,000 circuit kms of transmission
lines and 2.72 lakh MVA of transmission
capacity. The transmission line industry has
been a big booster to the power sector,
assisting the Government’s vision of providing
power to all, and is the only sector within
the power space with indigenization levels
of 95-100%.
Given the importance of the transmission
industry in supporting the power sector, the
CII Transmission Line Division organized a
conference with the theme ‘Electricity for All’
on 14 October in New Delhi.The deliberations
focussed on new developments in the power transmission
sector, investment planning, and project management, including
completion of projects, in minimal time frame. The sessions at
the event also discussed understanding the changing needs of
clients, the challenges faced by State Electricity Boards, and the
opportunities and the way forward for the transmission industry.
The industry appreciated the Government’s efforts including ‘Make
in India’ and ‘Digital India’ which have given the right impetus to
boost its growth.
Key points that emerged from the deliberations:
• Right-of-way, forest clearances and delays in project completion
are big challenges.
• The huge rise expected in the share of renewables in the energy
mix by 2030, to 40% from the present 6%, would pose a great
challenge in (the area of) grid operations. The integration of large
scale quantities of renewables into existing electricity grids would
also have technical implications for the grids.
• The Ministry of Power is setting up a group to look at the likely
impact of GST on the power sector.
• The transmission industry needs upgradation of skilled manpower and higher exposure to the
banking sector.
'Electricity for All'
COVER STORY
‘Transmission projects worth more
than `50,000 crores would be up for
bidding during the current fiscal to
increase power evacuation capacity
in the country.’
Pradeep Kumar Pujari,
Secretary, Ministry of Power
‘55,000 MW thermal power will come
on line by 2022, creating a huge
opportunity for the transmission line
industry. The industry is fully prepared
to meet the increasing demand.’
I S Jha, CMD, Power Grid
Corporation of India
BYTES
Manish Mohnot, Vice Chairman, CII Transmission Line Division, and MD,
Kalpataru Power Transmission Ltd; I S Jha, CMD, Power Grid Corporation of
India Ltd; Pradeep Kumar Pujari, Secretary, Ministry of Power, and
Vimal Kejriwal, Chairman, CII Transmission Line Division,
and MD & CEO, KEC International Ltd, at the
Transmission Line Conference in New Delhi

E
lectronics is a meta-resource which plays a
key role across all manufacturing and social
development sectors. The ‘Make in India’
campaign has put sharp focus on this sector, drawing
attention from within the country and across the globe
to the huge opportunities India offers in Electronics
manufacturing.
Three stalwarts of India’s evolving Electronics sector
share their views on the progress made thus far, and
the way forward. Mr Vinod Sharma is Chairman, CII
National Committee on ICTE Manufacturing, and MD,
Deki Electronics Ltd, while Mr Ramesh A Vaswani is
Director & Advisor-Corporate Affairs, Intex Technologies
(India) Ltd, and Mr Amit Kharabanda is MD, My Box
Technologies–Hero Electronix Venture.
QIt's been two years since the ‘Make in India’
campaign started. What do you think has been its
biggest achievement for the electronic manufacturing
sector?
Vinod Sharma (VS): The differential excise
duty structure as provisioned in the Union
Budget 2015-16 on mobile handsets and
tablets has met with encouraging response
from the industry.
A number of companies have set up
manufacturing facilities for mobile handsets. Several
others have taken the EMS route for domestic
manufacturing.
The differential excise duty not only compensates for the
disabilities but at the same times makes a compelling
case for ‘Make in India.’
Following the success of the differential excise duty
structure in attracting investments, its scope was
widened to cover specified CPEs, including set top
boxes, in the Union Budget 2016-17. The manufacturing
of set top boxes is considered to be a growth driver for
electronics manufacturing, similar to mobile handsets.
LED lighting also attracts a lower excise duty rate.
Ramesh A Vaswani (RAV): India
offers huge opportunities in Electronics
manufacturing. Investments in electronic
manufacturing reached `1.14 lakh crores
by December 2015, recording a jump of
over six-fold in a year in about 160 different
manufacturing units, covering mobile phones, consumer
electronics, etc.
There has been a resurgence of activity in this sector.
Visits by our Government officials, including Mr Ravi
Shankar Prasad, Minister of Electronics and Information
Technology, to various countries, recognized as leaders
in electronics technology and manufacturing, have added
further momentum to investments.
Several thousands of training opportunities and new
jobs have been created across the country.
Some nay-sayers complain about the assembly vs
manufacturing issues, but they forget that manufacturing
in a new sector, involving sophisticated proprietary
technology and heavy capital investment, always
commences with assembly, leads to investment
in machines and processes along with transfer of
technology, and then moves to substantial local value-
addition. In India, we have seen this happening with
the auto and auto components industry in the mid 80s.
Today, we are globally competitive in that sector.
Amit Kharbanda (AK) The biggest
achievement for me is that there is
a positivity connected to the entire
manufacturing industry. We have all been
producing set top boxes in India against
the general perception, not only globally
but also within India, that manufacturing in India is
impossible. The ‘Make in India’ initiative has put a lot
of focus and attention on manufacturing. I hope this
converts into India becoming a great manufacturing hub
in the years to come.
Taking ‘Make in India’ Forward
in Electronics
COVER STORY

COVER STORY
QIn its third year now, what do you expect the
‘Make in India’ program to deliver, to reach the
next level?
VS: The Electronics manufacturing industry
welcomes the introduction of GST, which would be
a significant step in the reform of indirect taxation
as it amalgamates several Central and State taxes
into a single tax.
A long-standing demand of investors has been stability
of policies. In this context, the industry looks forward
to the continuation of the relative advantages enjoyed
by domestic manufacturers like differential excise duty,
exemptions at the State level, etc, grandfathered into
the GST regime. If not, there could be widespread
disillusionment among investors, and the gains so far
may get frittered away.
The implementation of the Goods and Services Tax
(GST) should nurture and build on the gains in recent
years through ‘Make in India.’
Following the success of the differential excise duty
on mobile phones and other products, the industry
expects its scope to be broadened to cover other
growth-driving products like laptops, notebooks, flat
panel TVs, etc.
Also, as further steps, efforts should be made to
deepen manufacturing, to encourage the development
of supply chains, increase value-addition, reduce
dependence on imported inputs, boost the integration
of locally manufactured components, and encourage
local manufacture of chargers and batteries.
RAV: The Government has provided `10,000 crores
under the Electronics Development Fund to support
new entrepreneurs in the field of electronics. The
Electropreneur Park, which was recently inaugurated
in Delhi University, is an incubation center set up with
Government funds of around `21 crores to support the
incubation of up to 50 companies.
The MSIP Scheme, setting up of electronics
manufacturing clusters, offers of incentive packages
by various States, healthy competition between the
States to attract investments, increased domestic
manufacturing for the Defence sector, supported by
rising local demand for electronics products and an
increasing thrust on exports, all augur well for dynamic
growth in this sector.
Local manufacturing should show further traction in
2016 as more and more vendors are willing to benefit
from lower import duties and tax structures on semi-
knocked down units (SKD). This year should also end
with a substantially higher proportion of completely
knocked down (CKD) manufacturing in India, taking
local manufacturing to the next level.
AK: The first two years have gone in converting a lot
of negativity and despondency into positivity about
manufacturing by the ‘Make in India’ campaign. Every
small step is leading to a strong foundation. The third
year is when we expect a lot more investments and
conversion from discussions into action in terms of
business growing on a longer-term basis, and making
manufacturing a strong contributor to the country’s
economic growth.
QThe Government is targeting to achieve net zero
imports of electronics by 2020. How do you see the
ground level progress for the sector in this regard?
VS: The focus needs to be on making the
existing industry competitive, encouraging value-
added manufacturing, and development of supply
chains. This would attract investments, and an
increasing share of demand could be met though
domestically manufactured products, leading to
import compression. Once manufacturing becomes
competitive and volumes grow, the industry would
naturally transition to the integration of exports in
the business plan. Till then, handholding by the
Government is important. Export incentives need to
be restored to those existing in the Foreign Trade
Policy of the previous five years.
RAV: A lot depends on how proactive our Government
will be on identifying the opportunities in manpower-
intensive production areas in this sector, which is likely
to be vacated by China, and in addressing the issues
being faced by specific sub-sets of manufacturers
already here, and those wanting to come in with
fresh investments.
The processing of MSIP scheme applications needs
to be hastened.
The taxation regime road map should be announced
and held firm for 10 years. Tax incentives should not
be given only to large investors. They should also be
based on local value-addition rather than only on capital
investment. A yearly compensation mechanism for the
transaction cost differences in finance, power, logistics,
etc should be devised.
Electronics manufacturing on a mass scale involves
large volumes of labor at single locations. A holistic
policy is required for labor reforms and for creating
an eco-system facilitating large-scale employment of

COVER STORY
migrant labor to give them inexpensive shared housing,
food canteens and transportation, et al. Without this,
the training and retention costs of labor will be very
high.
A lot of ground remains to be covered. At the current
pace of resolution of issues, it seems difficult to achieve
net-zero imports by 2020, but we are certainly moving
in the right direction.
AK: This, I feel, is a very big challenge, but no battles
are won if there is no target to achieve. The net zero
imports is a good goal, and all eco system partners
need to work together to achieve this. It needs a
cohesive approach from policy makers, directly-related
industry, and parallel industries, et al, to first believe
in the goal, and then positively work towards it. The
ground level progress at the moment is slow, but
I am sure things will change soon. Let the people
working towards the goal be consistent. A strong
message should go out that there is no compromise
to this goal at all. Even the slightest doubt will not
let us give our best.
QWhat are the measures being proactively
undertaken by the Indian electronics industry to
achieve global standards in manufacturing?
VS: A few segments of the industry have had experience
in exports, and are in a position to meet global standards
in quality, price and delivery.
Various other segments catering to domestic demand
are also successfully competing with MNCs. Improving
quality and reducing field-level failures is an on-going
pursuit of the industry.
RAV: Local industry has shown keen interest in
achieving global standards in manufacturing, because
it is clearly understood that economic viability is not
possible without global cost competitiveness and
exports.
Investment is being made in state-of the-art machines
and equipment. Formal training in the required skills
is being given with the help of the Sector Skills
Development Councils. Design facilities are being set
up or out-sourced.
Incentives for in-house R&D need to be reviewed and
also made applicable for out-sourced R&D.
AK: Global standards and ‘Make in India’ are two sides
of the same coin. If we want global standards, we need
to have an ecosystem of manufacturing, and ‘Make
in India’ cannot be successful without creating global
standards. We live in a ‘glocal’world - global and local.
We have the whole world for sourcing technologies
and products, and selling locally, as per new world
dynamics. So there can be no compromise on quality
standards at all. For ‘Make in India’ to be popular, we
have no choice but to start working on standards in
manufacturing. I find industry discussing and talking
to international partners to come and establish their
manufacturing set-ups in our country, and to change our
way of doing things. Yes, more and more technological
collaborations and partnerships are going to be critical.
A lot has to be done. We must make case studies
of top global standards already in India, and highlight
them, and also request them to share their practices
for others to embrace.
QHas the FDI flow improved into the sector during
the past two years? How has it strengthened the
sector?
VS: A number of overseas companies have
set up initial operations. Others have resorted
to the EMS route for catering to the demand
through domestically manufactured products. The
strengthening of the sector as a result of the location
of investments/sourcing in India would come with the
deepening of their manufacturing operations. This,
in turn, depends upon the stability of policies and
further incentives for investing in the development of
value chains.
RAV: Global giants like LG, Samsung, Panasonic,
Sony, Foxconn, Huawei, Cisco, Lenovo, and a host of
other manufacturers have either committed expansion,
invested afresh, or will do so soon.
The localization of electronics sub-assemblies for the
auto industry, healthcare diagnostic equipment sector,
and defence offset commitments, will also bring in fresh
investments in electronics manufacturing.
AK: It has improved, but not yet to the levels
expected. A lot is still under discussion, or at the
commitment stage. As we move towards more
execution with stronger policies, and greater
confidence in the longevity and sustainability of
the policies, things will change faster than we are
envisaging.
India is no doubt a great investment destination.
Investment will strengthen the sector, as we need funds
to invest in infrastructure, training, and equipment to
create world class facilities for manufacturing. These are
some of the most critical requirements for making the
sector a strong contributor to the country’s economic
growth.

COVER STORY
QHave the proposed goals of increasing employment
generation and skill enhancement been met for
the electronics sector?
VS: Investments have resulted in the generation of
substantial employment, both direct and indirect. The
enhancement of skills has been marked at the field-
level operations.
RAV: There has been a substantial improvement in both
employment and skills generation in this sector.
In mobile manufacturing alone, India has attracted
investment from 37 manufacturing companies in the
last one year, that have generated 40,000 direct jobs
and 1.25 lakh indirect jobs. Production has increased
to 11 crore mobile phones as compared to 6 crores in
the previous year.
There are similar growth stories in consumer
electronics products such as TVs, air conditioners,
refrigerators and washing machines.
The Government has decided to make India a big hub
of electronics manufacturing, and this will be a huge
booster to both training and employment.
AK: We are moving towards our goals well, but the
journey is a long one. Importantly, the journey has
begun. We hope that the right support and continuous
focus on the sector from the Government will make
this journey faster than we have ever hoped for.
The success of ‘Make in India’ will automatically
make employment generation a no-brainer, and skill
enhancement will be the need of the hour. Let us
promise ourselves that we will all stay true to our
goal of ‘Make in India’ and give our best and work
together to make this a grand success. We are
confident that the Government will go all out to
support us in this journey.

Mindspace
india and the world
The BRICS grouping brings together Brazil.
Russia, India, China, and South Africa, all
large emerging markets, across different
continents. India was Chairman of the
grouping in 2016. During the year, numerous
events were held, culminating in the
BRICS Summit in Goa in October.
The BIMSTEC member countries were invited to participate in the
Summit this year, reinforcing India's role as a significant player in the
geopolitical economy. Our second lead feature for this month outlines the
contours of emerging market cooperation through these Summit meetings.
T
he economies of Brazil, Russia, India, China and
South Africa together form the BRICS grouping,
a unique assemblage of the world’s largest
emerging economies. Individually and collectively, these
nations are expected to be amongst the world’s largest
economies in the near future. BRICS comprises 43%
of the world’s population, and possesses 30% of the
world GDP and 17% share in world trade. As a formal
grouping, BRIC was started after the meeting of the
leaders of Russia, India and China in St Petersburg on
the margins of the G8 Outreach Summit in 2006, with
the inclusion of South Africa in 2011.
India hosted the 8th
BRICS Summit on 15-16 October
in Goa, during its chairmanship of the group. India’s
BRICS chairmanship, with the theme of ‘Building
Responsive, Inclusive and Collective Solutions’ adopted
a five-pronged approach:
• Institution building to further deepen, sustain and
institutionalize BRICS cooperation
• Implementation of the decisions from previous
Summits
• Integrating existing cooperation mechanisms
• Innovation, i.e. new cooperation mechanisms
• Continuity, i.e. continuation of mutually-agreed
existing BRICS cooperation mechanisms.
The focus during India’s BRICS chairmanship has been
mainly on enhanced people-to-people (P2P) contacts
of BRICS member states, especially the youth. In
this context, India hosted activities like U-17 Football
Tournament, Youth Summit, Young Diplomats’ Forum,
and Film Festival, to name a few.
As a curtain-raiser to the BRICS Summit in Goa, the
BRICS Business Forum was held on 13 October in
New Delhi. This year, the forum focused on the need
for leveraging the comparative advantages of the BRICS
economies, and discussed cooperation in energy,
infrastructure development and agri-business, especially
in the backdrop of a progressive global economic
recovery, with improved resilience and the emergence
of new sources of growth.
Currently, global growth remains weaker than expected
BRICS and BIMSTEC Summits
Focus on Trade, Investments,
and Enhanced Cooperation

BIMSTEC Business Summit 2016
CII organized the BIMSTEC Business Summit on 14 October in New Delhi as a precursor
to the BIMSTEC Leaders Retreat, held on the sidelines of the BRICS Summit 2016.
Chairing the Summit, Ms Nirmala Sitharaman, Minister of State (Independent Charge)
of Commerce and Industry, India, called for greater buoyancy in the approach toward
implementing projects in the BIMSTEC region. The complementarity of the region
could be highlighted to close in on the agreements that are being discussed, she said.
The Minister felt it was apt to invite the BIMSTEC countries to the BRICS business
meetings, as the countries in this region have been connected since time immemorial,
and hence the organic nature of pre-existing relationships could be easily revived.
In his inaugural address, Mr Chandrajit Banerjee, Director General, CII, said that
Indian industry has a key role to play in driving the global trade and investment
agenda. The annual BIMSTEC Business Summit provides opportunities for country-
mapping of the member countries. The engagement would facilitate as well as
identify opportunities of sectoral collaboration and policy advocacy between member
countries, he said. CII would continue to foster better environment for increased
trade and investments in the region through its MoU partners as well as with
industry associations in the various BIMSTEC countries, said Mr Banerjee.
The BIMSTEC Leaders Retreat, held on 17 October in Goa, on the sidelines of the
BRICS Summit 2016, took forward the discussions of the pre-summit in New Delhi.
The retreat made way for the exploration of a BIMSTEC Motor Vehicle Agreement
among member nations. This promising step will encourage greater trade linkages
among the countries, and, as well, open up new avenues for cooperation for
industries interested in investing in the region.
An expedited finalization of the Memorandum of Association on the establishment
of BIMSTEC technology transfer facility in Sri Lanka will see the proliferation of
ICT projects across countries, which will help establish better digital connectivity.
A collective approach to address public health issues in these countries also has
been focused upon, towards resolving common problems. The BIMSTEC Network of
National Centers of Coordination in Traditional Medicine, and its Task Force, is also
targeting to expand and deepen cooperation in this sector.
Apart from these steps, the region is poised to heighten its focus on tourism by establishing
a Buddhist tourist circuit as well as a temple tourist circuit within the region.
Recognizing the year 2017 as the 20th
anniversary of the establishment of the
BIMSTEC, the BIMSTEC Secretariat is also planning a series of activities.
Mindspace
Chandrajit Banerjee, Director General, CII; Romi Gauchan Thakali, Minister of Commerce, Nepal;
Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce and Industry, India;
Preeti Saran, Secretary (East), Ministry of External Affairs, India, and Amb Sumith Nakandala,
Secretary General, BIMSTEC Secretariat, Bangladesh, at the BIMSTEC Business Summit in New Delhi
with downside risks to
the global economy
continuing to persist. This
is reflected in a variety
of challenges including
commodity price volatility,
weak trade, high private
and public indebtedness,
and inequality and lack of
inclusiveness of economic
growth, according to the
BRICS Goa Declaration.
Uncertainty in the global
economy is accentuated
b y g e o p o l i t i c a l
developments such as
terrorism, strife, refugee
flows, and illicit financial
flows. However, the
benefits of growth need
to be shared broadly in
an inclusive manner.
One of the biggest
outcomes of the BRICS
process has been the
operationalization of
the New Development
Bank (NDB) and of the
Contingent Reser ve
Arrangement (CRA),
which contribute greatly
to the global economy
and the strengthening of
the international financial
architecture.
A landmark initiative of the
8th
BRICS Summit was
the holding of an Outreach
Summit of BRICS
leaders with the leaders
of BIMSTEC member
countries.(BIMSTEC
is the Bay of Bengal
Initiative for Multi-Sectoral
Technical and Economic
Cooperation, bringing
together Bangladesh,
Bhutan, India, Myanmar,
Nepal, Sri Lanka and
Thailand, for cooperation
in trade, industry and

sectors of mutual interest.) The grouping is a natural
progression on the basis of regional proximities as well
as the fact that these countries share common historical
trade linkages through the Bay of Bengal. The sub-region
has four LDCs (Bangladesh, Bhutan, Myanmar and Nepal).
This regional grouping provides a unique link between
South Asia and South-East Asia, bringing together over
2 billion people, or about 22% of the world population,
and a combined GDP of over $2.7 trillion.
The BIMSTEC region naturally lends itself to regional
integration with physical connectivity as well as economic
cooperation. The nations in the region look forward to
India’s leadership, as the biggest member of BIMSTEC,
to show tangible results. In terms of connectivity,
BIMSTEC has at least three major projects that, when
finished, could transform the movement of goods and
vehicles through the countries in the grouping.
Taking advantage of the opportunity of the presence
of BRICS leaders in the sub-continent, the leaders of
the BIMSTEC composition were invited to the BRICS-
BIMSTEC Outreach Summit in Goa, India. There was
common agreement on strengthening BRICS – BIMSTEC
solidarity and cooperation based on common interests
and key priorities to further strengthen strategic
partnership in the spirit of openness, solidarity, equality,
mutual understanding, inclusiveness and mutually
beneficial cooperation.
Emerging challenges to global peace and security and
to sustainable development, which require immense
concentrated and collective efforts, can only be achieved
when there is universal acceptance and consensus.
The Joint Summit explored possibilities of expanding
trade and commercial ties, and investment cooperation
between BRICS and BIMSTEC countries.
W i t h t h e 2 0 3 0
Sustainable Development
Goals (SDGs) and
over-arching focus on
poverty eradication,
as well as equal and
balanced emphasis on
the economic, social
and environmental
d i m e n s i o n s o f
sustainable development,
countries in the BRICS-
BIMSTEC groupings
stand to gain from the
introduction of innovative
mechanisms for trade.
The establishment of a technology facilitation mechanism
within the UN with a mandate to facilitate technology for
the implementation of the SDGs, will tremendously improve
the region’s infrastructure.
Public and private investments in infrastructure, including
connectivity, to ensure sustained long-term growth, are
being encouraged in the BRICS and BIMSTEC regions,
and new and innovative projects will see the light of
day. The involvement of multilateral development banks
to bridge the financing gap in infrastructure will increase
trade engagement.
The multilateral trading system and the centrality of
the WTO as the cornerstone of a rule-based, open,
transparent, non-discriminatory and inclusive multilateral
trading system with development at the core of its
agenda, garnered much support from the BRICS and
BIMSTEC member countries. There is therefore much
hope for a scenario of more bilateral, regional, and
pluri-lateral trade agreements complementary to the
multilateral trading system, with the principles of
transparency, inclusiveness, and compatibility with the
WTO rules very much in place.
The role of BRICS and its collaborative efforts in
economic and financial co-operation are yielding positive
results. Emphasis on the importance of cooperation to
help stabilize the global economy and to resume growth
will be the order of the day among these nations.
Areas such as ICT expansion, energy and climate change,
such that the global imperatives of attaining energy
security and international cooperation are achieved
inclusively, received attention. Therefore, COP22 in
November in Marrakech could demonstrate a whole new
approach toward ratifications of the NDCs, as well as
stronger relationships and unified BRICS and BIMSTEC
participation.
It is noteworthy that
a MoU between the
Export-Import Bank of
India (Exim Bank) on
general cooperation with
the New Development
Bank (NDB), along with
other development
financial institutions
of BRICS nations was
signed, thus marking
the beginning of a fresh
outlook on exports
among the BRICS
economies.
Mindspace
Htun Naing Aung, Chairman & CEO, Kaung Kyaw Say Group of
Companies, Myanmar; R V Shahi, Chairman, Energy Infratech, and
Former Secretary, Power, India; Ghanshyam Prasad, Director – Transmission,
Ministry of Power, India, and Ken Tun, CEO, Parami Energy Group of
Companies, Myanmar

I
n the year of India’s chairmanship of BRICS, a
key agenda is the fostering of cooperation among
BRICS in the development of financial markets. To
propagate the need for ‘Building a Reliable, Inclusive
and Competitive Bond Market in the BRICS,’ the
Department of Economic Affairs, Ministry of Finance,
India, in partnership with CII, recently organized a
seminar on ‘Challenges in Developing the Bond Market
in BRICS’ in Mumbai.
Mr Arun Jaitley, Minister of Finance and Corporate Affairs,
who was the Chief Guest, in his valedictory address,
stressed the need to synergize the efforts of BRICS
countries for their economic development. Protectionism
by the developed economies is hindering the prospects
of future growth of these nations, he said.
Referring to the domestic growth rate, he said that,
considering the challenges faced by the banking sector
today, it is imperative to develop alternate sources of
finance. The corporate bond market offers an efficient
and effective avenue. Hence, there is an urgent need
to further develop and deepen it, he said.
The Government, said Mr Jaitley, has accepted
the recommendations of the HR Khan Committee,
constituted by the Reserve Bank of India, and is in
the process of implementing them. This would impart
simplicity to the bond market, enable access to capital
internationally and make the market more robust with
the potential to expand overall growth of the Indian
economy.
Mr U K Sinha, Chairman, Securities and Exchange
Board of India (SEBI), spoke on the various reformatory
steps being undertaken by both the regulator and the
Government to develop the bond market in India. He
suggested that, on the lines of the New Development
Bank, BRICS countries must also work towards creating
a BRICS bond market.
Mr Sinha released a report on the seminar theme in the
inaugural session.The report states that developing bond
markets goes beyond policy initiatives, and stresses that
accelerating development requires a sustained change
management program driven in a purposeful manner
across stakeholders.
Mindspace
'Bond'ing the BRICS Countries
Arun Jaitley, Minister of Finance and Corporate Affairs, with (L-R): Praveen Garg, Joint Secretary (Financial Markets), Department of
Economic Affairs, Ministry of Finance; Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall; Shaktikanta Das,
Secretary, Department of Economic Affairs, Ministry of Finance, and Chandrajit Banerjee, Director General, CII,
at the seminar on ‘Challenges in Developing the Bond Market in BRICS’ in Mumbai

Mindspace
Mr Shaktikanta Das, Secretary, Department of Economic
Affairs, Ministry of Finance, emphasized on the need
to develop the bond market in India.
Other key policy-makers from the Ministry of Finance,
including Mr AjayTyagi, Additional Secretary (Investment);
Mr Praveen Garg, Joint Secretary (Financial Markets);
and Mr Jithesh John, Director (External Markets),
as well as Mr R Gandhi, Deputy Governor, RBI, and
senior foreign and domestic panelists discussed various
aspects of integration amongst BRICS member nations
to develop corporate bond markets. The event also
provided a platform for India to analyze global best
practices which can be emulated in BRICS.
Mr Chandrajit Banerjee, Director General, CII, outlined a
fresh list of agenda items which was very well received
by Mr Arun Jaitley. The Finance Minister assured action
on the recommendations.
The following points emerged from the deliberations
of the Summit:
• Tax exemptions have helped attract a sizable
investors base, especially in Brazil.
• A common capital market infrastructure could be
created within the BRICS economies enabling access
of BRICS investors to each others’ markets. This
would need the following to be instituted:
 Unified approach to the credit rating system –
Developing Corporate Bond Markets
BRICS countries, on an average, have a bond market penetration of 25% of GDP compared with a
developed market average of 99%. This indicates a tremendous opportunity for BRICS nations to deepen
bond markets to sustain economic growth. The BRICS economies have seen their bond markets grow at a
25% CAGR over the last 15 years on the back of concerted policy actions, however there is many a mile to
go. These are the findings from a McKinsey and Company report specially prepared for and released on the
occasion of the CII BRICS seminar on ‘Developing Corporate Bond Markets.’
Deep and strong corporate bond markets are a crucial enabler for a country to flourish economically; as they
provide funding for companies and prompt investment to drive growth. BRICS nations need to build a holistic
plan across regulation and standards, taxation, market infrastructure etc to deepen their markets.
The report benchmarks BRICS nations on the parameters of the depth and health of the bond market, and finds that
most BRICS nations feature low in the rankings. To further strengthen their markets and build a solid foundation for
growth, BRICS countries need to adopt a holistic program. Such a program needs to cover elements of boosting
direct financing, fostering issuer participation through easy guidelines, introducing new products, lowering entry
barriers for foreign investors, offering tax incentives and strengthening the market infrastructure.
The report also outlines initiatives taken by China and India to develop their ‘Dim Sum Bonds’ and ‘Masala
Bonds’ respectively in unique ways on foreign shores. BRICS countries could learn from these examples in
their quest for healthier and better-performing bond markets.
Developing bond markets is not only about policy initiatives, says the report. Accelerating development requires
a sustained change management program driven in a purposeful manner across stakeholders. The emerging
realization is that nations such as India need to deepen their corporate bonds significantly to sustain growth.
Multiple committees and reports have highlighted steps to deepen the market. What is needed now is a
concerted change management program covering all stakeholders to deliver impact in a time-bound manner,
says the report.
Janmejaya Sinha, Chairman, CII National Committee on Financial
Inclusion, and Chairman – Asia Pacific, The Boston Consulting
Group (India) Private Ltd; U K Sinha, Chairman, SEBI, and
Ajay Tyagi, Additional Secretary (Investment), Department of
Economic Affairs, Ministry of Finance

Mindspace
India – Myanmar Business Roundtable
Indian investment in Myanmar must be linked to Myanmar’s overall
development, stressed Daw Aung San Suu Kyi, State Counsellor and
Union Minister for Foreign Affairs, Myanmar, at the India-Myanmar
Business Roundtable held in New Delhi on 19 October. Addressing the
roundtable organized by CII in cooperation with the Ministry of External
Affairs, India, the Minister said opportunities for cooperation must be
mutually beneficial, and must offer a fair deal for both countries.
Myanmar, she said, is in the process of notifying a new investment
law which would accord the same treatment to foreign companies as
is being given to domestic companies. The new law would bring in
transparency in contracts, enforce the rule of law, and curb corruption,
while also addressing issues such as repatriation of profit and of
capital, she added.
Indian Industry could cooperate with Myanmar in areas such as skill
development, agriculture, especially organic agriculture, agri-machinery
and infrastructure development, among others, she suggested.
Bilateral trade between the two countries is below par, and measures
need to be taken to boost trade, observed Mr Amar Sinha, Secretary
(ER), Ministry of External Affairs, India. Issues between the two
countries which need to be resolved include the need to modernize
banking and finance channels in Myanmar, equal treatment in terms
of tariffs and duties, tariff rationalization in the automobile sector and
clarity on Myanmar’s energy policies. India, on its part, is working on
completing the various connectivity projects that are underway to link its
North-eastern region with Myanmar, he added.
Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall,
highlighted the need to step up bilateral economic relations. Myanmar
needs to establish modern banking channels and payment mechanisms
to encourage Indian investment, he felt.
Mr Chandrajit Banerjee, Director General, CII, spoke of the need
for India and Myanmar to work together in areas such as IT,
infrastructure, forest and wood produce, and infrastructure development,
among others.
Daw Aung San Suu Kyi, State Counsellor and Union Minister for Foreign Affairs,
Myanmar; Amar Sinha, Secretary (ER), Ministry of External Affairs, India;
Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall, and
Chandrajit Banerjee, Director General, CII,
at the India – Myanmar Business Forum in New Delhi
Creation of a BRICS rating
agency.
 Harmonization of regulations
governing local bond
markets.
 Mutual recognition with
standard valuation and
disclosure norms.
 Rationalization of tax
structure for cross border
issuances.
 Standardization of issues
across BRICS economies
• Encourage investors in the
corporate bond market
to facilitate cross-border
purchase of BRICS bonds.
• Offshore debt markets in
the local currency can be
a useful funding instrument
for corporates, especially
when the onshore market is
not getting fully developed.
However, the debate
around offshore is attracting
investors.
Some Issues
• A classic challenge for
regulators is ‘how much
control and regulation versus
the need to expose investors
to the risk that comes with
the investments.’
• The interests of banks are not
aligned to corporate bonds,
and they prefer loans to
corporate bonds.
• Crowding out of private
issues by sovereign issues,
how should corporates make
issuances, and what should
be the credit spread
• Clarity on Capital Gains Tax
should be given, and the
ambiguity between equity
and debt taxation should be
removed.

Cold Chain: Enabling the
2nd
Green Revolution
FOCUS
food and agriculture
I
ndia’s greatest need for sustainable food management
is an effective and economically viable cold chain
solution that will totally integrate the supply chain
for all commodities, from the production centers to the
consumption centers. Such market connectivity reduces
physical loss and degradation of value of the harvest,
and is a major contributor to farmers’ incomes. The
growth of the cold chain sector is critical for both the
agricultural and food processing sectors.
The paradox is that, in spite of the large infrastructure
gap, the existing capacity is under-utilized and units
operate below capacity.
India’s cold chain industry is still in the development
phase. The gap in cold chain infrastructure is estimated
as 69,381 modern pack-houses, 3.27 million MT of new
cold storage aptly segregated into cold storage (bulk)
and cold storage (hubs), 52826 units of refrigerated
transport vehicles/containers, and 8319 modern ripening
chambers.
Given the Government’s priority towards doubling
farmers’ income, it is clear that India needs to move
from a supply-led revolution to a concerted effort in
creating capacities and efficiencies in its networks from
farm to markets. Cold chain infrastructure is pivotal
to this and can play a catalytic role in enabling the
2nd
Green Revolution.
The Government of India has taken various measures
to give a boost to the cold chain sector in the form
of various fiscal incentives like reduced taxes, excise
duty exemption on refrigerated machinery, concessional
custom duty of 5%, viability gap funding, infrastructure
status, 100% weighted deduction under income
tax, et al.
With the onset of the GST regime in India that will
integrate the multi-layered tax system into a single
unified system, the supply chain is expected to see
a shift, due to the changing tax structure, incidence,
computation, payments, compliance, credit utilization
and reporting. Cold chains requiring inter-State logistics
and transactions are also expected to see a shift.
Industry needs to gear up and put its systems in
place to adapt to the impending changing regime to
maximize efficiencies.
Underscoring the need to find solutions to strengthen
the cold chain infrastructure in the country, the
6th
National Cold Chain Summit was organized to explore
the innovations and interventions needed to catalyze
investments across the food value chain, and, as well,
share sustainable global best practices in this arena.

FOCUS
6th
National Cold Chain Summit
Considering the importance of the cold chain sector, and also to develop a roadmap towards the creation of
a robust food value chain, CII, in association with the Ministry of Food Processing Industries, the Ministry
of Agriculture, and the National Center for Cold Chain Development (NCCD), organized the 6th
National Cold
Chain Summit on 27 October in New Delhi.
A scheme for crop specific infrastructure creation is to be introduced shortly, announced Ms Harsimrat Kaur
Badal, Minister of Food Processing Industries, at the Summit. The scheme would enable farmers to become
entrepreneurs and start their own food processing or cold chain transportation ventures, she explained.
The Minister requested CII to create a task force to help set up Farmer Producer Organizations (FPOs) for
crop specific clusters for top agricultural and horticultural produce in the States, and also provide to inputs to
the Ministry to help create the infrastructure for these FPOs. These FPOs could be connected to industry for
further processing, she suggested.
The Summit was also addressed by Mr SK Pattanayak, Secretary, Ministry of Agriculture, and Mr J P Meena,
Additional Secretary, Ministry of Food Processing Industries, amongst other dignitaries.
During the Summit, CII’s commitment to strengthen the development of cold chain infrastructure in the country
was reiterated. CII has been working on crop-based infrastructure development solutions with the State
Governments of Tamil Nadu and Andhra Pradesh for banana and mango respectively. It has also been working
to build a strong service portfolio in cold chain and will continue to engage in training and capacity-building
activities, promote partnerships
to strengthen the cold chain
infrastructure in the country, and
develop post-harvest management
protocols as avenues for
strengthening crop-specific cold
chain infrastructure.
International experts from Danfoss,
Carrier Transicold & Refrigeration
Systems, and Covestro showcased
global innovations and research in
the cold chain space.
P Ravichandran, Chairman, CII Task Force on Cold Chain Development, and President, Danfoss Industries Pvt Ltd; Chandrajit Banerjee,
Director General, CII; Harsimrat Kaur Badal, Minister of Food Processing Industries; T Nanda Kumar, Former Chairman, National Dairy
Development Board, and Chairman, CII Jury Cold Chain Awards; Pawanexh Kohli, CEO and Chief Advisor, National Center for
Cold Chain Development, and Ashok Mirchandani, Co-Chairman, CII Task Force on Cold Chain Development, and MD, Asia Pacific,
Carrier Transicold, at the 6th
National Cold Chain Summit, in New Delhi
SK Pattanayak, Secretary, Ministry of Agriculture; Hitin Suri, Director, Suri Agro Fresh;
B Thiagarajan, Chairman, CII National Committee on State-level Coordination in Agriculture, and
Joint MD, Blue Star, and JP Meena, Special Secretary, Ministry of Food Processing Industries

FOCUS
CII Cold Chain Awards
The first CII Cold Chain Awards were presented by Ms
Harsimrat Kaur Badal at the Summit. The Cold Chain
Awards have been initiated by CII in partnership with
the NCCCD to recognize organizations for outstanding
contributions in the field of cold chain management,
including warehouse, logistics, and policy systems,
and to raise awareness about sustainable success
and competitiveness through the sharing of best
practices.
The jury for the CII Cold Chain Awards was chaired by
Mr T Nanda Kumar, Former Chairman, National Dairy
Development Board, and co-chaired by Mr Pawanexh
Kohli, CEO and Chief Advisor, NCCCD. The award
winners were:
• Best Practices in Cold Chain-Outstanding
Performance
– Large category: Rewali Unit, Adani Agrifresh
Ltd
– Medium category: Savla Foods & Cold Storage
Pvt Ltd
– Certificate for Significant Achievement: Barasat
Unit, Keventer Agro Ltd
• Refrigeration Transport-Outstanding Performance
– Large category: Coldrush Logistics Pvt Ltd
– Medium category: Rivigo Services Pvt Ltd
– Innovators category for Significant Achievement
(Emerging Entrepreneur): Brring Integrated
Logistics Pvt Ltd.
Harsimrat Kaur Badal presenting the award for Outstanding
Performance Best Practices in Cold Chain Management
(Large Category) to representatives of Adani Agrifresh Ltd

Portfolio for Excellence
Green Business
Green Building Congress 2016
The 14th
edition of the Indian Green Building Council's
(IGBC) annual flagship event, the Green Building
Congress, organized from 5-8 October in Mumbai,
brought national and international stakeholders together
to share and learn the latest and emerging green building
technologies, and also forge new partnerships.
Over the years, the Green Building Congress has
played a catalytic role in advancing the green building
movement in the country. Today, India with over
4.45 billion sq.ft is among world’s largest in terms
of registered green building footprint. IGBC aspires
to facilitate 10 billion sqft by 2022 (the 75th
year of
Independent India).
With the theme ‘Sustainable Built Environment for All,’
the Congress featured a conference on green homes
and affordable housing, a conference on green existing
buildings, an awareness program on green schools,
and sessions on green residential societies and green
products, materials and technologies.
The key speakers at the Green Building Congress
2016 included Mr Suresh Prabhu, Minister of Railways,
Mr Chandrakant Bachchu Patil, Minister of Revenue,
Relief and Rehabilitation, Public Works, Maharashtra,
Mr Ashish Kumar Singh, Principal Secretary, PWD,
Maharashtra, and Mr Mangu Singh, MD, Delhi Metro
Rail Corporation (DMRC).Mr Rakesh Sharma, India's
first cosmonaut, and Dr Felix Padel Darwin, great-
great grandson of Charles Darwin, also participated
in the Congress.
Some Highlights
Asia Pacific Regional Network Meeting
IGBC hosted the Asia Pacific Network (APN) Regional
Meeting on the sidelines of the Green Building Congress,
on 5 October.
The APN, comprising of 17 Councils, was held for the
first time in India. APN is a strong network and works
closely with the stakeholders in identifying new growth
opportunities to facilitate the adoption and promotion
of green buildings across the globe.
Mr Tai Lee Siang,
Chair, World Green
Building Council,
presented the World
G r e e n B u i l d i n g
C o u n c i l ’s A s i a
Pacific Leadership
in Green Building
Awards for 2016.
The Delhi Metro Rail
Corporation (DMRC)
was recognized for
Business Leadership
in Sustainability.
The winners in other
Suresh Prabhu, Minister of Railways, addressing the
Green Building Congress 2016 in Mumbai
Suresh Prabhu with the winners of the 'Green your School' contest and IGBC Green Design Contest 2016

categories were:
• Sustainable Design and Performance (Commercial): 69
Robertson Street – Floth, Australia
• Sustainable Design and Performance (Residential): Double
Cove, Hong Kong
• Sustainable Design and Performance (Institutional): ZCB
by Construction Industry Council, Hong Kong
Five New Green Building Rating Systems
The IGBC launched five new green building rating systems,
for existing MRTS, healthcare facilities, data centers, villages,
and railway stations, respectively, at the Congress, taking the
number of rating systems offered to 18. All the IGBC green
building rating systems are aligned with various national codes
and standards, such as the National Building Code of India,
the Energy Conservation Building Code, et al.
MoUs
On 6 October, the IGBC inked a MoU with the DMRC to
work jointly towards:
• Certification and hand-holding of DMRC’s new and existing
stations as per IGBC’s Green MRTS Rating
• Rating system development and enhancement
• Capacity-building workshops and training programs
The IGBC also inked a MoU with the Indian Society of
Heating, Refrigeration and Air Conditioning Engineers
(ISHRAE) on 7 October, to partner in areas including
PORTFOLIO
Presentation of the Green Building Awards 2016 to the Delhi Metro Rail
Corporation, at the Asia Pacific Leadership Meeting, coinciding with the
Green Building Congress, in Mumbai
Release of the IGBC Green Villages Rating System at the
Green Building Congress in Mumbai

developing an IEQ standard for India, developing
performance curves of major equipment, and
information exchange.
Dholera, India’s First Green City
Mr Tai Lee Siang presented the IGBC Green City
Platinum Rating to the Dholera Special Investment
Region, on 8 October. This is the first greenfield city
in the country to achieve the IGBC Green City rating.
Spanning 920 sq km, it is India’s largest upcoming
Green City.
IGBC-rated Green Villages
Providing a major impetus to IGBC’s initiatives of
greening Indian villages, five villages were presented
with the green building rating: Mawlynnong
in Meghalaya;Tilpat and Bhond, both in Haryana;
Mori – Moripodu in Andhra Pradesh; and Punsari in
Gujarat.
The IGBC Green Village Rating System is the first-
of-its-kind to address green development in the rural
sector. Designed as a tool to facilitate and support the
development of 1000 green villages in India by 2022, it
is applicable for all existing villages of India as per the
latest census definition. Villages in urban fringe areas
can also apply for the rating.
Places of Worship Go Green
Badriya Jum'a Masjid, Kodi, India’s first green mosque,
and the Shree Siddhivinayak Ganapati Temple, Mumbai,
India’s first green temple, were awarded with the IGBC
Green Building Rating.
Appreciation Awards
In appreciation for their excellent contribution in taking
forward the green building movement, The IGBC Green
Champions Awards were presented to 14 senior persons
from the building and related sectors.
Further, 150 green building projects were presented
with IGBC plaques and certificates, and 47 stakeholders
were presented with IGBC Fellowship Award.
Green Design Competitions
Mr Suresh Prabhu, Minister of Railways, awarded
the winners of the ‘Green your School Contest’ and
the ‘IGBC Green Design Competition for Architectural
Students.’
The event also hosted the release of the 2nd
edition of
‘Green Buildings of India,’ a coffee table publication.
Indo-Swedish Innovation Platform
The CII Godrej Green Business Center, with the support
of the Swedish Energy Agency and Business Sweden
has developed the ‘Innovations Accelerators - Indo-
Swedish Innovation Platform’ to facilitate the transfer of
innovative clean technologies and solutions from Sweden
to India. The program has been running since the last
three years, with more than 40 innovative Swedish
companies showcasing their technologies to Indian
stakeholders through workshops and B-to-B meetings,
engaging over 250 Indian companies so far.
As part of this initiative, workshops on innovative clean
technologies and B-to-B meetings with a visiting Swedish
delegation were held on 4 October in Chennai, and on
6 October in New Delhi.
PORTFOLIO
Quality
Global Excellence Model Council Meet
This year’s Global Excellence Model (GEM) Council
members’ meet was held in Sao Paulo, Brazil, from
18-20 October. The meeting was hosted by the National
Quality Foundation (FNQ), Brazil, coinciding with its
silver jubilee celebrations.
The CII Institute of Quality is a member of the
GEM Council from India. The Council consists of
organizations recognized globally as the guardians of
premier excellence models and award processes in
their specific geographical region/area or trading bloc,
with representation from Singapore, Malaysia, Japan,
Mexico, America, Brazil, and Europe. These not-for-profit
organizations provide mutual learning and sharing of
Participants of the annual Global Excellence Model (GEM) Council
Meet in São Paulo

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