CII Communique - February, 2010

spotlight
the economic centre
of gravity is shifting to
Asia – especially China
and India, which will
have ramifications for
the entire world.
At the session on
moving from regional
integration to global
partnerships, chaired
by Mr Michael Yeoh of
the Asian Strategic and
Leadership Institute,
Malaysia, a strong plea
for multilateralism was
made by the speakers. Prof Tarun Khanna, Jorge Paulo
Lemann Professor, Harvard Business School, stressed
that “most trade will happen between the south –south
countries.” Developing nations have to tackle problems of
financial and talent inclusion, Prof Khanna said, pointing
to the need to innovate.
Mr Greg Mills of Brenthurst Foundation, South Africa,
was of the view that African countries, to be able to
successfully integrate with the global economy, will have
to deal with their immense logistical and infrastructure
challenges. Highlighting the need to deal with transaction
costs, he pointed out that it costs more to send goods
within Africa than to send goods from Kenya to China,
and stressed the importance of investing in intra-African
logistical infrastructure.
Ms Patricia Hewitt, MP, UK, and Chair, UK-India Business
Council, noted that big countries like India could
participate effectively in WTO negotiations but small
developing nations could fall out of the multilateral
regime. She made a strong plea for multilateralism,
pitching at the same time for European Union like
barrier-less trade integration. Mr S Pushpanathan, Deputy
Secretary-General, ASEAN, saw no conflict between
the various regional processes and the process of
globalization. The two were interdependent, he said,
pointing to how the global economic recovery was
being led by Asia.
Speakers at the session on Investment Security
emphasized the need for faster and more systemic
policy reforms in India for ensuring greater capital flow
and investment security. Several speakers said that
FDI flows into India were nowhere near what India
needs to finance its infrastructure requirements, despite
considerable progress in creating an investment-friendly
climate.
Mr V Narayanasamy,
Union Minister of
State for Planning,
Parliamentary Affairs
and Culture, India,
i n v i t e d g r e a t e r
investment into India,
saying that private
d e b t a n d e q u i t y
flows into the country
have become more
significant than official
flows. The time has
come for India to make
bold and rapid strides
in economic reforms, he added.
Venu Srinivasan, and Dato’ Krishnan Tan, Chairman, Malaysia India Business
Council, signing the MoU between CII and the MIBC
Mr Abdullah Ahmed Al Saleh, Director General, Ministry
of Foreign Trade, UAE, emphasized that technology was
opening up new ways of entrepreneurship, and classical
economies were being swiftly replaced by knowledgeeconomies.
The key to success was the formation of
partnerships between nations that are able to invest
in new technology, like the UAE, and countries with a
skilled workforce, like India. Mr Arvin Boolell, Minister
of Foreign Affairs, Regional Integration and International
Trade, Mauritius, said the WTO July framework in Geneva
should not be unraveled. He added that issues relating
to IPR, fiscal space and agricultural market access
needed to be addressed by the WTO, else developing
countries would suffer.
Tamil Nadu is keen to partner with private investors
in the generation of power, development of sea ports,
Special Economic Zones and townships and is soon
forming a dedicated project facilitation committee, said
Mr Rajeev Ranjan, Principal Secretary, Industries, Tamil
Nadu at the special plenary on the state. A low cost
production base, lower wage rates and availability of
skilled manpower are the key factors that are contributing
to the growth of Tamil Nadu, which has become one
among the fastest growing and largest economies of
India. Mr C K Ranganathan, Chairman, CII Tamil Nadu
State Council, said that Tamil Nadu occupies an enviable
position among Indian states in industrial development,
while senior state government officials presented specific
opportunities in the state.
In his keynote address at the Plenary Session on
New Trade Routes, Mr Maqbool Ali Sultan, Minister of
Commerce and Industry, Oman, talked about the need
to complete the Doha Round of negotiations by the end
of this year. He also emphasized the need for systematic
Communiqué February 2010 | 19