Communiqué November 2009 | 1 - CII

Volume 18 No. 11 November 20091025 Years ofPartnership 18in this issue...06 Exhibition on Climate Change10 CII-WEF: 25 Years of Partnership062518 India Economic Summit 200925 10th India-EU Summit28 Business Confidence Up: CII Survey40 World Food Day Celebrationsplus... Yi World India & the World Regional Round Up And all our regular features40We welcome your feedback andsuggestions. Do write to us atcommunique@cii.inEdited, printed and published by Chandrajit Banerjee, Director General, CII, on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre,23, Institutional Area, Lodi Road, New Delhi-110003 Tel: 91-11-24629994-7 Fax: 91-11-24626149 Email: ciico@cii.in Website: www.cii.inPrinted at Lustra Print Process. B- 249 Naraina Industrial Area, Phase 1, New Delhi - 110 028 Registration No. 34541/79JOURNAL OF THE CONFEDERATION OF INDIAN INDUSTRY2 | November 2009 Communiqué

cover storypartnership25 Years of Partnership:CII and WEF in IndiaThe unique institutional partnershipbetween CII and the World EconomicForum is today 25 years strong,sustained through the epochaltransformation of the world order andthe economic changes in India. If Indiais now on the action agenda of everymajor multinational company in theworld, much of the credit devolves onthe CII-WEF partnership10 | November 2009 Communiqué

partnershipThe unique partnership between the World EconomicForum and the Confederation of Indian Industry,has sustained over three decades, amidst theepochal transformation of the world order, internationalbusiness, and the economic changes of India.The exceptional joint venture has brought about agreater understanding of India and Indian industry tothe rest of the world. It was a catalyst in the openingof the Indian economy to the outside world, and helpedevolve the blueprint for the growth and development ofIndia over the years.The BeginningThe World Economic Forum was started in 1971, thebrainchild of business professor Klaus Schwab fromSwitzerland. Beginning as the European Foundationfor Management, the Forum, by the end of a decade,became a meeting ground for top businessmen andpolitical leaders as well as intellectuals and media.Increasingly, the meetings debated the state of the globaleconomy and the way to alleviate age-old scourges suchas poverty. Since the WEF was impartial and apolitical,its deliberations and suggestions were perceived asobjective and unprejudiced by policy-makers. As itsinfluence on policy matters across Europe and USAgrew, the Forum expanded its horizons. It looked atChina in 1979. Next, India was a natural choice.In the 1970s, India’s economic growth had been dentedby diverse crisis situations, such as the 1971 warwith Pakistan, drought, and the declaration of internalemergency in 1975. The later part of the decade sawseveral changes in government and, consequently,economic policy. In this uncertain atmosphere, GDPgrowth hovered near the average of 3.5% per annumthat the country had achieved since Independence.For private enterprise, the environment for doing businesswas restricted by the Government’s preoccupationwith establishing the foundations for basic and heavyindustries, in a socialist form of development that gaveprimacy to the public sector. Private companies hadto obtain licenses for manufacturing new products orexpanding existing factories in order to ensure equitabledistribution of scarce resources.A foreign exchange shortfall made the country increasinglyisolated from the rest of the world. The lack of anindustrial base to produce exportable goods meant thatimports were totally prohibited or canalized throughgovernment agencies, or possible only through a long andcumbersome licensing procedure. Overseas companiesCommuniqué November 2009 | 11

partnershipwere discouraged from doing business in India.As private industry benefited from the public sector baseof heavy industries, a large and diversified industrialsector gradually evolved, albeit protected from therest of the globe. But a few intrepid industrialists werebeginning to look beyond the borders…India began changing in the early 1980s. A newgovernment was taking steps to relax the industriallicensing regime, and new Industrial Policy Resolutionshad been announced, making expansion for privateenterprise somewhat easier. The WEF felt the time wasright to make a beginning in India. But India’s complexsystems were proving a hurdle.Nevertheless, when Rajiv Gandhi, then General Secretaryof the Congress Party – and the son of the PrimeMinister, visited Geneva in August 1984, WEF made aspecial effort to meet him. When the idea of holdingan India Meeting was mooted, he was fully in favourof it and, in fact, committed to requesting the PrimeMinister to inaugurate it. When the first India Meetingwas held on 15-16 April in 1985 in New Delhi, just a fewmonths after Rajiv Gandhi was elected Prime Ministerafter the assassination of his mother, he delivered theinaugural address!Holding the first meeting was not an easy task for theForum. Uncertain of the ins-and-outs of India’s complexfunctioning, the Forum needed a partner to supportthem with the right kind of skills for their internationalbusiness members and help bring in a fair representationof the top business and political leaders from India.For the first meeting, the four prominent chambers ofcommerce and industry in India partnered with WEF, withthe understanding that WEF could select one of theseassociations as its long-term India partner, dependingon its initial experience. The smallest of these wasAIEI, now CII.The first WEF India Meeting was well-attended by 200or so companies from across the world. For Indiancorporates who had little interaction with the outsideworld and faced many regulations in traveling abroad,this opportunity to discuss issues concerning India andget outside perspectives was unprecedented.By the next year, the WEF selected its new India partner:AIEI, which had now changed its character to becomethe national-level Confederation of Engineering Industry(CEI). This association, being small and relatively new,had a new approach to doing business: it was moreefficient and streamlined, with a keen desire to engagewith the rest of the world, and it was full of fresh ideas.Most of all, its secretariat was headed by the dynamicTarun Das, who believed strongly in India’s globalintegration. Das became WEF’s closest ally and friend,sharing its objectives and philosophies, and extendinggenerous and unlimited help.The First Years of PartnershipThe two organisations thus embarked on a journey thatwould celebrate 25 years of partnership over a quartercenturywhere much changed in the global economyand India.There were cataclysmic changes in the world order: theBerlin Wall was pulled down, integrating East and WestGermany. The vast empire of the Soviet Union splinteredinto pieces, bringing down the Communist system ofpolitical and economic governance. Oil prices surgedduring the Middle East conflict and terrorism becamea threat to business all over the globe.Meanwhile, India was beginning to present a newface to the world. New thoughts were introduced intechnology, education, and private enterprise. Slowly, thecontrols on industry and imports were relaxed, allowinggreater freedom of choice to industrialists, even whilethe licensing system and import restrictions continuedto be in place. As the economy responded, the rate ofgrowth of GDP shifted from 3-4% to 6%.The second India Meeting in 1986, was as successful asthe first. But in 1987, the mood again turned somber, asdrought and a consequent downturn in the growth ratedashed the expectations of business for continued highreforms. But CEI remained active in pushing ahead theagenda for reforms, working with policy-makers to bringabout changes in the business environment that wouldsupport the new generation of industrialists.In 1989, amidst fractious domestic politics, the economicagenda languished. The WEF, though keen to maintainits links with the country, found no scope in holdinga meeting in India. Instead, a meeting with the thenMinister of Finance, SB Chavan, was organized inGeneva. Once again, with CEI’s help, a delegation ofIndian industrialists accompanied the minister. Severaltop bureaucrats also joined the delegation, indicating arejuvenation of interest in engaging with the world.In 1990, the WEF returned to India for its annual meeting.The event was well-established on the event calendar ofinternational and Indian businesses, with its trademarkcomfortable and easy discussions, candid views andwide perspectives, sharp insights and forecasts, carefully12 | November 2009 Communiqué

partnershipnurtured and cultivated by CEI and WEF. As the 1990sprogressed, such a platform of two key believers in theIndia story would prove to be crucial for the cataclysmicchanges that were about to descend on the economy.The story from 1991In 1991, Dr Manmohan Singh took over as FinanceMinister at a time when the country was facing severepressures on external debt and public finances. In July1991,a sweeping set of measures dismantled the entireindustrial licensing regime, opened sectors reserved forthe public sector, and allowed foreign companies greaterfreedom to enter India.Foreseeing these impending changes, CEI once againreconfigured itself to meet the coming challenges.Already a significant player in the industrial scenario andemerging as a major supporter of the reform agenda,the CEI in 1992 became the Confederation of IndianIndustry (CII), representing all industry sectors, includingservices and non-engineering streams. CII took on thetasks of providing inputs to help shape policy, explainingthe changes to a reluctant section of industry, andassisting companies to adapt to these changes. Globalintegration of Indian industry was a central focus, wellin sync with its endeavors with WEF.Since 1991, India’s reform agenda has continued unabatedwith different governments at the central and state levels.The reform process includes monetary and fiscal policies,trade and foreign investment, infrastructure upgradation,technology, and sectoral policies. External integration hasbeen a central facet of the overall endeavour.The years since 1991 have proved that the Indian politycannot be ignored while framing policy, which is as itshould be in a mature and vibrant democracy. What isundisputed now is the fact that inclusive developmentand economic growth are the top priority for whichevergovernment is in the saddle, whether at the centre orin the states.These reforms accelerated India’s pace of development.India, from 2003 to 2008, witnessed close to 9%average annual growth, the second-fastest among majoreconomies after China. With extraordinary successin IT and IT-enabled services, telecommunications,automotives, petroleum products, and many others, Indiais today a valuable member of the global economy, withtrade in goods as much as 35% of its GDP and highinvestments from overseas.The transformation was not easy for sheltered Indiancompanies. Within an unbelievably short time-span, thenew realities compelled them to rapidly restructure, adaptto global quality standards, and upgrade technologyand management systems. But with remarkable tenacityand determination, Indian companies achieved globalstandards of efficiency and productivity within a shortperiod. As liberalisation progressed, they becameglobal champions, striding confidently into the worldof international business.WEF and CII played a key role in this dramatictransformation. From 1989 to 1994, their strengthenedpartnership and close collaboration set the foundationsof the world’s engagement with India.During this period, the annual India conference servedas a reference point for both international industryand domestic policymakers. It became the place formultinational companies eager to do business for India,and for Indian companies keen to establish new ventures.At the same time, the recommendations of the conferencehelped shape the direction of the reform process.New ideas continued to shape the format of themeetings. State chief ministers were invited both tothe India forum and the Davos Meeting. Neighboringcountries also were invited. The idea of themes foreach meeting was also introduced. The 1999 theme of‘India in the 21st Century: A Global Player’ might havebeen thought ambitious at the time, but has proved tobe prophetic!A new India EmergesIn 1999, India unleashed a new wave of reforms, givingconfidence to global investors. The Indian economyopened further, with FDI limits coming down in varioussectors, and Indian companies were allowed to investoverseas.The 2000 meeting, had, for the first time a sessionon HIV/AIDS, which first raised the issue in India ata respected forum. The India Business Trust for HIV/AIDS is now a nodal point for industry’s engagementin this arena.The reforms agenda is now firmly in place, with aseries of policies to encourage entrepreneurs and easethe manner of doing business in India, and restoringconfidence that India is set firmly on the path of globalintegration.The WEF-CII partnership has expanded into manydirections. Besides the India Economic Summit, anumber of other events too have been institutionalisedand are held on a regular basis. Several CII membershave been co-chairs at the Davos meeting and attend14 | November 2009 Communiqué

partnershipregional events of WEF. The India focus in the Forum’sactivities has gained prominence due to its strongcollaboration with CII. In fact, WEF has no similarinstitutionalized partnership with any other organizationin the world, making this a unique endeavor.In the last few years, the contours of the partnership haveincluded the following dimensions, among others:India Economic SummitsThe multifaceted annual themes of the India EconomicSummit each year reflect the political and economicdevelopments in India, presciently ahead of the curve,and often nudge the trend of economy into specificdirections.For example, in 2000, the theme ‘Leveraging Knowledgefor Growth: India on the Move’ was selected when theIndian IT sector was barely on the horizon. The sector’sphenomenal growth since 2000 has made India theworld’s largest software services exporter.Similarly, the 2002 theme of ‘8% Growth for 20 Years –How?’ came when India was suffering severe droughtin years and pessimism on future prospects was highamong economists and industrialists. The GDP grew at8.8% for the next five years!In 2005, the India Economic Summit recognised thevast potential of the young demographics of the countryand felt that a ‘young and resurgent India’ could trulychange ‘regional and global strategies.’ By 2008, amidstthe global economic crisis, ‘Securing India’s Future’became a concern. Optimism resurfaced in 2009, withdiscussions for a ‘Resilient India.’At each of the meetings, the issues selected covernot only emerging sectors such as IT, infrastructure,innovation, financial markets, etc. but also India’s positionin the world, inclusive growth, the rural economy, andsocial development. Some of the key innovations haveincluded developing scenarios for India, Town Hall typeof meetings, smaller sessions focused on issues suchas water management. A key initiative has been thepresentation of the ‘Social Entrepreneur of the Year’ Awardto innovators melding social and business priorities.The WEF-CII partnership is evident at each meetingof the India Economic Summit. The themes and areasof emphasis are jointly discussed and decided upon.Members of both WEF and CII co-chair the IndiaEconomic Summit each year.The Davos MeetingEach year, CII organises a large delegation of ministers,chief ministers, business leaders, academia, artistes,media and civil society to Davos. A number of sessionsfeature Indian speakers, providing the perspectiveson the world’s largest free-market democracy and itseconomic development. In fact, the Indian contingentis among the largest and most visible at the annualgathering, imparting the country a high profile amongthe world’s top thinkers and leaders.The vibrant India Reception hosted by CII each year atDavos is one of the most popular and best-attendedevening events at the meeting. In an informal setting,those interested in India get to meet the top policymakersand movers and shakers of the Indian economy. TheDavos meetings also include India Breakfast Sessionswith key India members.WEF hosts the Raclette Dinners, one of the very fewevents that it organises exclusively for a country-specificcommunity in Davos during the annual conference.Regional and Country-specific WEF MeetsRecognising that India is an important economy for globalbusiness, WEF invites speakers from India to attend itsvarious meetings all over the globe. CII arranges andcoordinates the visits. Thus, there is usually a windowon India at key WEF forums around the world.Research and ProjectsTwo key publications reflecting CII-WEF partnership are‘India and the World: Scenarios for 2025’ and ‘India@Risk’. For both, CII identified a number of experts andfacilitated interaction and discussions with WEF.The WEF-CII partnership has also helped India be a vitalpart of many WEF research and projects. Global activitiesof WEF, such as the Global Competitiveness Report, havea strong India component. This strong participation ofIndia is enabled through the CII network.The FutureThe exceptional joint venture of CII and WEF prescientlyraises key issues, intensifying global industry’sengagement on India’s challenges, and deepeningthe relationship of Indian and overseas businesses. AsIndia evolves into a global economic power, WEF andCII will continue to strengthen industry’s partnershipwith the country.The enduring sustainable partnership of these twoorganisations, which celebrates its silver anniversarythis year, has brought a dynamic new India to thecentre of global attention. It will now facilitate its excitingascendance in the global economic community.16 | November 2009 Communiqué

cover storyevent25th India Economic SummitIndia’s Next Generation of GrowthDr Manmohan Singh, Prime Minister of India with Dr Klaus Schwabb,Founder and Executive Chairman, WEF and Chandrajit Banerjee,Director General, CIIPranab Mukherjee, Finance Minister, India with Chandra Kochhar,Managing Director & CEO, ICICI Bank, IndiaIndra Nooyi, Chairman & CEO, PepsiCo, USA andP Chidambaram, Home Minister, IndiaThe India Economic Summit commemorated25 years of active engagement in India thisyear, with a theme that looked ahead to ‘India’sNext Generation of Growth.’ Organised jointly by theConfederation of Indian Industry and the World EconomicForum every year since 1985, in New Delhi, this specialedition of the Summit brought together over 700 businessand government leaders, as well as approximately100 reporting press from major international andinfluential Indian media organizations, to explore theopportunities and challenges that both the current andfuture generations of India’s leaders will need to addressto shape India’s future growth.While the mood this year was in part celebratory, it didnot divert from the reality of the global economic crisisand its impact on India’s remarkable social and economicprogress over the past years. At the time of the last IndiaEconomic Summit, the world witnessed the unfolding ofwhat is now regarded as the worst financial crisis sincethe Great Depression. This time, business leaders fromaround the world found a confident, resilient India, readyto take its place on ‘prime time’ as one presenter putit, but, at the same, with a sober understanding of itsrights and responsibilities as a member of the G20, andan integrated player in the global economy.Inaugurating the Summit, Dr Manmohan Singh, PrimeMinister of India, said India looked to the future withconfidence and hope. India should achieve 7% growthnext year with a good monsoon, and a target of 8-9%growth in the medium term is eminently feasible, giventhat our domestic savings rate is now as high as 35% ofGDP, said the Prime Minister. With the focus strongly onrapid and inclusive growth, the Prime Minister said sectorslike Education and Healthcare in particular, amongst ahost of other challenges, required sustained attentionand spending. He invited increased private investmentand more public – private partnerships in both physicaland social infrastructure in the country, and assuredthe gathering of business from all over the world, of aninvestor-friendly environment in a number of sectors.Mr P Chidambaram, India’s Minister for Home Affairs,asserted at the Closing Plenary that India had the‘confidence, capacity and capability to meet any threat.’18 | November 2009 Communiqué

eventAmbika Soni, Minister forInformation & Broadcasting, IndiaAnand Sharma, Minister forCommerce & Industry, IndiaKapil Sibal, Minister for HumanResource Development, IndiaKamal Nath, Minister for RoadTransport & Highways, India— A Snapshot —Theme – India’s Next Generation of GrowthFour Pillars Resilient India A Region at Risk Green Growth and Inclusive Development Tomorrow’s India 32 public sessions (including 15 plenaries, 14 interactivemeets and 3 WorkStudios) 30 private events by 20 industry groups 780 + registered participants from 560 organisations Over 376 foreign (including Indian subsidiaries) and 185Indian organisations 300 + CEOs/board level participants from overseas, 480from India Summit inaugurated by Dr Manmohan Singh,Prime Minister of India Indian Public Figures at the Summit Pranab Mukherjee, Finance Minister P Chidambaram, Home Minister Anand Sharma, Commerce & Industry Minister Kamal Nath, Road Transport & Highways Minister Ambika Soni, Information & Broadcasting Minister Kapil Sibal, HRD Minister Dr Montek Singh Ahluwalia, Deputy Chairman,Planning Commission Sam Pitroda, Advisor to the PM on Public Information,Infrastructure & Innovations Jyotiraditya Scindia, Minister of State forCommerce & Industry Shashi Tharoor, Minister of State for Foreign Affairs M Ramachandran, Minister of State for Home Affairs K V Thomas, Minister of State for Agriculture &Consumer Affairs Ajay Shankar, Secretary, DIPP Kiran Walia, Minister for Health & Family Welfare,Delhi Oommen Chandy, Former Chief Minister, Kerala Representation from 42 countries India Social Entrepreneur Award for 2009 presented toRajendra Joshi, Managing Trustee, Saath; Brij Kothari,Director, PlanetRead; and Padmanabha and Rama Rao,Co-Directors, RIVERRahul Bajaj, Chairman, Bajaj Auto & Member of Parliament, India,and Shashi Tharoor, Minister of State for Foreign Affairs, IndiaBaba N. Kalyani, CMD, Bharat Forge, India and Jyotiraditya Scindia,Minister of State for Commerce and Industry, IndiaCarlos Ghosn, Chairman & CEO,Renault, France; President andCEO, Nissan, JapanSachin Pilot, Minister of Statefor Communications & IT, IndiaDr Montek Singh Ahluwalia,Deputy Chairman, PlanningCommission, IndiaWilliam D. Green, Chairman &CEO, Accenture, USACommuniqué November 2009 | 19

eventShumeet Banerji, CEO,Booz & Company, UKHari S Bhartia,Vice President, CII, &Co-Chair & MD, JubilantOrganosys, IndiaSam Pitroda, Advisorto the PM on PublicInformation, Infrastructureand InnovationsProf. C K Prahalad, University of Michigan, USA,Prof. Raghuram Rajan, University of Chicago, USA andTarun Das, Former Chief Mentor, CIIMr Pranab Mukherjee, Finance Minister speaking onthe Post-crisis Economic Order, assured that stimuli todomestic demand would continue until developed countryeconomies recover. Noting that the government’s threepriorities now are investment in agriculture, investmentin infrastructure and getting fiscal and monetary policyright, he said the two key drivers of Indian growth aredomestic consumption and investment.Mr Kamal Nath, and Mr Kapil Sibal, Ministers for Roadsand Highways, and Human Resource Development,respectively, said that reforms and projects were inplace to give India the desired impetus in terms ofInfrastructure, Education and Skill Development.Dr Klaus Schwabb, Founder and Executive Chairman,WEF, pointed out that few countries have the growthpotential of India, one of the few economies to haveposted positive GDP growth in 2009. With its vastdomestic market, comparatively less export dependencyand relative macroeconomic stability, India’s economyhas proven resilient in a challenging global context.Next to its strong economic fundamentals, India’syouthful population calls attention to a demographicdividend that could see India become a hub formanufacturing, technological innovation and education,among other things. As India looks to its next generationof growth, critical issues like inclusive development,integration, infrastructure, power, climate change andsustainability would take centre stage, he said.But, India cannot wait. Speaker after speaker from bothIndia and overseas, from government, industry and civilsociety, at the manifold sessions held on 8-10 November,stressed that India can only capitalize on its competitivestrengths if proverbial challenges – including infrastructuraldeficits, income disparity and other looming global threats,such as climate change – are addressed. India’s aspirationto emerge as one of the world’s four largest economiesby 2020 will require coordinated efforts by today’s andtomorrow’s leaders from government, industry and civilsociety to upgrade infrastructure, increase educationalopportunities, reduce poverty and expand regionalcooperation, reiterated the Summit.The discussions were grouped around four key pillars.‘Tomorrow’s India’ explored how policy makers andCEOs are shaping political, economic and corporatestrategies to improve prospects for future competitivenessin the light of India’s demographic reality. The sessionsincluded updates on the Commonwealth Games,Financial Inclusion, Tapping Female Talent, the Futureof Indian Media and Entertainment, the Aspirations andExpectations of an Impatient India, Next-Gen Healthcareand Making India a Global Manufacturing Hub.‘Green Growth and Inclusive Development’ discussedgrowth strategies for eco-efficiency and sustainability, whileensuring equitable distribution of resources amongst allsections of society and across geographies. The sessionshere looked at India’s Entrepreneurial Eco-system, theGirl Effect, Next Aspirations, Trade and Climate Change,Urban Transportation, Affordable Housing, the AsianConsumer, (R) Urban India, and Indo-vations.‘A Region at Risk’ examined the threats to India’s growththat need to be prudently managed to ensure social andeconomic stability, environmental stability and regionalco-operation. Here, the sessions featured updates onAgriculture, Energy, Resuscitating the flow of PrivateCapital and Pandemic Preparedness, with discussionsalso on Opportunities Ahead for Growth, and MaintainingBalance in the Post-crisis Economic Order.‘Resilient India’ looked at the economic and politicalfactors that are underlining India’s continuing growth amidstthe global slowdown. Besides Updates on the Economy,20 | November 2009 Communiqué

eventVenu Srinivasan, President, CII, & Chairman,TVS Motor Company Ltd, and Chandrajit BanerjeeAnand Sharma with the winners of the India Social Entrepreneur AwardInfrastructure and Education, the sessions assessed India’slevel of global economic engagement, Responsible andCollaborative Political Dialogue, Redesigning How Indiawill shape Future Global Co-operation, and charted aroadmap for the Next Generation of Growth.The Summit concluded that India’s aspiration to emergeas one of the world’s four largest economies by 2020will require coordinated efforts by today’s and tomorrow’sleaders from government, industry and civil society toupgrade infrastructure, increase educational opportunities,reduce poverty and expand regional cooperation.Moving Forward...At the Valedictory Session of the Summit, the six SummitCo-Chairs reviewed the discussions of the past threedays and how to move forward on an agenda to drive‘India’s next generation of growth,’ the theme of themeeting. To achieve India’s ambitious growth agenda,its leaders must be held accountable, Mr Chidambaramobserved. “The problems are not growing faster than ourcapacity to find solutions,” he contended. “Where thegap is growing is in accountability. We are not holdingpeople accountable.”On the need to address the country’s poor infrastructure,Mr Carlos Ghosn, Chairman and Chief Executive Officer,Renault, France; President and Chief Executive Officer,Nissan, Japan; Member of the Foundation Board of theWEF, said that the government simply needs to executeits plans, including the objective of building 20 kilometresof roads a day. “The millions of new jobs won’t happenif the roads are not done,” he reckoned.Speaking on empowering women and educatinggirls, Ms Indra Nooyi, Chairman and Chief ExecutiveOfficer, PepsiCo, USA; Global Agenda Council onthe Role of Business, called for relevant governmentministers to meet with business and civil society leadersto make the issue a priority. “This is no longer a niceto-have,it is an economic imperative,” she remarked.India has to be more effective in addressing itsdemographic challenges, especially its “youth bulge”and mobilizing its abundant human resources toensure that growth is inclusive. “There is a very largeproblem of execution,” said Mr Shumeet Banerji, ChiefExecutive Officer, Booz & Company, United Kingdom. “Ifdemographic bulges are not educated, that could leadto dislocation and instability.” In particular, India mustaddress its skills deficit, the Co-Chairs agreed.For Mr Baba N. Kalyani, Chairman and ManagingDirector, Bharat Forge, India, an urgent priority is to bringenergy to the 400 million Indians without access to it. Thiswill have to be done in an environmentally responsibleway, he said. He also stressed the importance ofinnovation. “India’s advantage is its ability to innovateespecially at the low end to produce low-cost productsthat bring the price point down. This will propel Indianmanufacturing forward.”Mr William D. Green, Chairman and Chief ExecutiveOfficer, Accenture, USA, agreed. “There is really anopportunity to take talent the country has and deployit towards innovation. The world is desperate for newbusiness models – how to do things more efficiently.Green manufacturing is something the country can focuson and specialize in.”Considering all the challenges discussed during theSummit, Ms Chandra Kochhar, Managing Director andChief Executive Officer, ICICI Bank, India, concluded:“The irony is that each one of these issues can turninto an opportunity or a bottleneck. If we don’t investin infrastructure, for example, it will be a bottleneck toour growth.”Communiqué November 2009 | 21

trade windspartnershipTrade relations between India and Europe go backmore than two millennia. Roman coins found at theancient South Indian port of Arikamedu highlightthe antiquity of commercial relations between the subcontinentand Europe. The European Union (EU) isIndia’s largest trading partner with USD 72 billion in twoway trade in 2008 accounting for over 17% of India’s totaltrade. Both exports and imports have shown a healthygrowth in recent years, and overall trade relations haveremained robust despite the global slowdown. The EUis also the largest direct investor in India.While the overall picture looks good, trade betweenEU and India still remains below potential. There aresome well known bottlenecks: Indian exporters facesignificant non-tariff barriers in the EU market, especiallyin agriculture and marine product exports. Another areaof concern for Indian exporters is specific tariffs that canbe quite high for some exports.Trade in services remains another area where theeconomic engagement between India and the EU isfar below expectations. India’s expertise in IT and ITEShas been slower to tap the European market, partly dueto language requirements beyond English that are notwell developed in India, but also because of significantregulatory barriers. Most IT and ITES in India have adual mode of delivery, with 70% of the work being doneoffshore in India (Mode 1), and 30% of the work beingimplemented and monitored on location (Mode 4). Thecumbersome visa processes in the EU are a majorimpediment to the onshore component of the work,adding to costs for Indian IT and ITES firms. Indianservices providers are also interested in areas beyondIT and ITES such as banking and finance, professionalservices, education, and healthcare.The EU would like to expand its India footprint in areassuch as finance, insurance, banking, telecommunication,education and distribution services. There is also a greatdeal of potential for EU-India private sector engagementin R&D. However, EU firms have some concerns relatedto the IPR regime in India, and greater engagement andpolicy changes might be needed to instill confidencefor European stakeholders to participate in R&D jointventures in India.There are three main forces that make a deeper India-EU economic relationship almost inevitable: population will require it to seek new productioncentres, skills, and markets abroad to keep its economyrobust of the world’s largest pools of consumers and skilledworkers in the decades to come, and will be central toglobal consumption and production over-dependence on a few markets for their trade andinvestment relationsWhile these forces will make Indian and EU governmentsand firms work closer together, the question remains asto what is the right way to take the bilateral India-EUrelationship forward. Discussions are on for an India-EUFTA, but there are some concerns related to marketaccess in key areas such as textiles and food processing.Indian firms are also concerned with the prominencegiven by the EU to non-trade issues related to labourand environmental standards in the FTA negotiations.Another area of contention is that of governmentprocurement. Given India’s ambitious infrastructuredevelopment agenda, the EU is very keen that Europeanfirms perticipate in India’s multi-billion dollar infrastructuresector. EU nations perceive that the inclusion ofsubstantive commitments on India’s part on governmentprocurement within the EU-India FTA would enablethem to better access this market. However, theIndian government and many Indian firms have theirreservations, given its implications for India’s driveto create sound domestic capacity for large scaleinfrastructure development.Irrespective of the EU-India FTA negotiation outcomes,the EU-India trade and investment relationship will onlygrow deeper in the coming years, and private sectorstakeholders will play a central role in the developmentof this relationship. However, both Indian and Europeanindustry have a stake in expediting the EU-India FTA.Industry thus needs to keep coming up with creatingsolutions to the problems and impediments that arekeeping it from completion.22 | November 2009 Communiqué

partnershipevent10th India-EU Business SummitThe 10th India – EUBusiness Summit isbeing held at a timewhen some optimism isreturning around the globe,said Mr Ajay Shankar,Secretary, Departmentof Industrial Policy andPromotion, Ministry ofCommerce and Industry.India. Global cooperation,partnership and engagement,and the consensus across theworld helped in moderatingthe pain of the crisis, he added. The Summit, organisedby CII in association with the Ministry of Commerce andIndustry in New Delhi on 6 November, was attendedby a large number of Indian and European businesspeople.The relationship between India and the EuropeanUnion will reach heights that will surprise all of us,predicted Mr Shankar. He said the Indian Governmenthas now withdrawn the requirement of any permissionsand clearances for technology transfers and royaltypayments. Mr Shankar also highlighted two importantinitiatives for making business easier in India: One, theGovernment is partnering with leading IT companiesto create an e-based system for getting the requiredGovernment approvals and also making paymentselectronically. The second is to actively engage withstate governments to improve the business climate.Mr Philippe de Buck, Director General,BUSINESSEUROPE, said this Summit is crucial andtimely, since the world has changed after the globalDr. Ewa Björling, Minister of Trade, Sweden, Anand Sharma,Minister of Commerce & Industry, India and Venu Srinivasan,President, CII & Chairman, TVS Motor Company LtdPierre Simon, President, Eurochambres, Signhild Arnegard-Hansen, President, Confederation ofSwedish Industry, Baba Kalyani, CMD, Bharat Forge Ltd, Ajay Shankar, Secretary, DIPP,Subodh Bhargava Past President CII & Chairman Tata Telecommunications Ltd, Philippe de Buck,Director General, BUSINESSEUROPE and Chandrajit Banerjee, Director General, CIIeconomic crisis. There isalso a need for India andthe European Union todiscuss the climate issue,he added.Speaking about the Indianexperience in Europe, MrBaba Kalyani, Chairman andManaging Director, BharatForge, said access to newcustomers, new technologies,state of the art productionfacilities, modern skill sets,and critical natural resourcesin the production value chain are the main drivers forIndian business investing in Europe.SKF, a leading European bearings company, opened adevelopment centre in Bangalore five years back. Thecompany has now moved their total development activityfor the two wheeler market to this centre to be closeto Indian customers and two wheeler manufacturers,and to gain access to India’s talent base, said Mr TomJohnstone, President and Chief Executive Officer, SKF,sharing their experience of doing business in India.Mr Chandrajit Banerjee, Director General, CII, notedthat both sides have indeed come a long way since thefirst Summit in Lisbon in 2000. There have been a seriesof new initiatives from both sides in the last decade,resulting in deeper collaboration between India and theEuropean Union. As the world economy recovers, thisSummit assumes special significance during its 10thanniversary, he said.Mr Subodh Bhargava, Past President, CII, and Chairman,Tata Telecommunications Ltd,said that the new confidence andaspirations of Indian corporateshave brought the investmentrelationship into sharper focus.Today, investments are a two-wayprocess in both India and Europe,he said. SMEs on both sides arevibrant and dynamic. In India theyare increasingly venturing into hitechnology,led by technocrats andfunded by enthusiastic investors;and can become an importantlink between the two sides, headded.Communiqué November 2009 | 25

economyanalysisIndia’s Monetary PolicyIn its second quarter review, the RBI has taken measuresto address the surplus liquidity in money markets buthas refrained from increasing the policy rates. Themeasures taken to tighten liquidity are essentially areversal of some of the measures taken in the aftermathof the financial crisis when domestic liquidity had becometight. For example, the SLR (banks’ required holding ofgovernment securities as a proportion of its deposits) hasbeen restored to 25% from the reduced level of 24%.Since banks are already maintaining SLR in excess of25%, this measure will not have any immediate impact.However, bond yields softened on this policy move asit would imply an increase in the mandated demand forgovernment bonds.Monetary Policy Measures Undertaken 25 per cent of their NDTL with effect from the fortnightbeginning 7 November, 2009 from transactions in CBLO (collateralized borrowing andlending operations) with Clearing Corporation of IndiaLtd. (CCIL) with effect from the fortnight beginning 21November, 2009 from 50 per cent to 15 per cent of eligible outstandingrupee export credit commercial banks scheduled commercial banks for funding to mutualfunds, non-banking financial companies and housingfinance companies RBI’s Macroeconomic AsessmentThe RBI’s macroeconomic assessment is the key toits policy regime. In the current policy statement, theRBI has indicated its concerns on growth remainingsoft even as inflation is rising. In such a scenario, theRBI would like to withdraw from its accommodativepolicy stance and begin its interest rate tighteningcycle soon. In the interim, it has made a beginningby reversing some of the liquidity enhancing measuresit had taken earlier.Conservative on Growth: The RBI is more conservativein its growth projection compared to the Ministry ofFinance. Given the concerns on account of the decline inagricultural output and in exports, the baseline projectionfor GDP growth for 2009-10 is placed at 6.0 per centwith an upside bias. Thus, the RBI’s GDP projectionremains unaltered from that made in July 2009 andremains below the more recent projection of 6.5% madeby the Prime Minister’s Economic Advisory Council.Hawkish on Inflation: RBI has significantly raised itsinflation outlook for the end of the year. It has said thatthe upside risks mentioned in July 2009 in terms of higherfood and commodity prices have materialized. It hastherefore raised its baseline projection for WPI inflationat end-March 2010 to 6.5 per cent with an upside biasfrom 5.0 per cent projected in the July policy.Realistic in Monetary Pojection: Recognising theweakness in bank credit growth, the RBI has reviseddown its projection of monetary growth from 18 percent set out in July 2009 to 17 per cent. Consistentwith this, the growth in adjusted non-food credit is alsorevised downwards to 18 per cent from 20 per centset out in the Annual Policy Statement and the FirstQuarter Review.Projected Increase in Bank Credit & Deposits(Rs. Crores)31-Mar20099-Oct2009Increasein FY sofarProjectedincrease inremainingpart of FYAggregate deposits 3,834,109 4,161,354 327,245 362,895Bank credit 2,775,550 2,890,316 114,766 384,833Credit-deposit ratio 72.4 69.5Concerned on Liquidity: The RBI has indicatedsatisfaction with the decline in interest rates followingearlier policy interventions, although the prevalence ofexcess liquidity may be a concern. The RBI has beenabsorbing a daily average of almost Rs. 120,000 croreunder the LAF window since April 2009.Funds absorbed under Liquidity Adjustment FacilitySource: RBI26 | November 2009 Communiqué

analysisRegulatory PoliciesThe RBI has taken several steps to develop financialmarkets, ease constraints on banks with regard tobranch authorization, and promote financial inclusion.It has also moved to tighten provisioning norms forbanks, especially in the real estate sector. This moveis likely to hit the profitability of many banks and hasnegatively affected bank stocks.Developmental & Regulatory MeasuresFinancial Markets issued by end-November 2009. Debentures (NCDs) of Maturity of Less than One Yearwill be placed on RBI’s website by end-November2009 resident entities to be introduced, subject to approiatesafeguards. Principal of Securities) to be launched, as scheduled,during the current financial year. financial year depending upon market conditions andmarket appetite offer currency futures contracts in currency pairs ofEuro-INR, Japanese Yen-INR and Pound Sterling-INR, inaddition to US dollar-rupee contracts which are alreadypermitted.Financial InclusionBusiness Correspondent (BC) Model BCs in addition to those permitted already:i) individual kirana/medical/fair price shop ownersii) individual Public Call Office (PCO) operatorsiii) agents of small savings schemes of Governmentof India/insurance companiesiv) individuals who own petrol pumpsv) retired teachers, andvi) authorised functionaries of well-run self-helpgroups (SHGs) linked to banks; and from the customer in a transparent manner undertheir Board-approved policy for delivering servicesthrough the BC. This should be clearly explained tothe customer.Regulatory Measures for Commercial BanksRelaxations in Branch Authorisation Policy than RRBs) will now be free to open branches inTier 3 to Tier 6 centres as identified in the Census2001 (with population up to 50,000) under generalpermission. commercial banks (other than RRBs) in Tier 1 and Tier2 centres (with population over 50,000) will continue torequire prior authorisation. 3 to Tier 6 centres in such a manner that at leastone-third of such branches are in the underbankeddistricts of underbanked States as will be notifiedseparately by the Reserve Bank. This would be oneof the criteria in the Reserve Bank’s consideration ofproposals by domestic scheduled commercial banks(other than RRBs) to open branches in Tier 1 andTier 2 centres. In considering such proposals, theReserve Bank would, in addition, take into accountbanks’ performance in financial inclusion, prioritysector lending and level of customer service, amongothers.Increase in Loan Loss Provisions to the commercial real estate sector classified as‘standard assets’ from the present level of 0.40 per centto 1 per cent. consisting of specific provisions against NPAs aswell as floating provisions, and ensure that their totalprovisioning coverage ratio, including floating provisions,is not less than 70 per cent from the current 10 percent. Banks should achieve this norm not later thanend-September 2010.Institutional Measures categories: asset finance companies, loan companiesand investment companies. It has now been decided tointroduce a fourth category of NBFCs as ‘InfrastructureNBFCs’, defined as entities which hold minimum of 75per cent of their total assets for financing infrastructureprojects. NBFCs to the credit rating assigned to the NBFC byexternal credit assessment institutions (ECAIs).Communiqué November 2009 | 27

economysurveyBusiness Confidence Up: CII IndexThe CII-Business Confidence Index for October-March 2009-10improved by 7.4 points to 66.1, as compared to a 2.4 pointincrease during the first half of 2009-10CII Business Confidence IndexThe CII Business Confidence Index (CII-BCI) for October-March 2009-10 surged by a robust 7.4 points to 66.1as compared to a 2.4 point increase during the first halfof 2009-10, reflecting a boost in business confidencecompared to the previous six months. The CII-BCIis constructed as a weighted average of the CurrentSituation Index (CSI) and the Expectations Index (EI).The Business Confidence Index advanced on the backof improvement in both current situation index andexpectation index, though the latter has shown betterprogress. However, uncertain global economic outlookand slackening consumer demand continue to affectbusiness confidence.Data from RespondentsH I G H L I G H T S54% expect GDP growth rate for 2009-10 in therange of 6% to 7%.82% expect inflation to be below 5% in2009-10.80% expect economic turnaround and recoverytowards normal growth towards the end of2009-10 and beyond.52% foresee increase in spending on capacityexpansion in H2 of 2009-10.The Current Situation IndexThe Current Situation Index (CSI) compares the currentbusiness conditions in relation to the previous six months.CSI gained 5.9 points as compared to the previousperiod and 3.4 points compared to the correspondingperiod last year. Within CSI, the index for the overalleconomy gained 7.8 points, adding to the evidence thatthe economy is reviving faster than expected.Business Confidence IndexIndexApr-Sept2008-09Oct-Mar2008-09Apr-Sept2009-10Oct-Mar2009-101. Business Confidence Index 61.0 56.3 58.7 66.12. Current Situation Index 60.3 55.9 53.4 59.3(a) Overall Economy 57.1 48.3 48.6 56.4(b) Own Activity Sector 58.4 52.3 50.1 57.5(c) Own Company 62.7 60.9 57.2 61.63. Expectation Index 61.4 56.5 61.4 69.5(a) Overall Economy 57.5 47.6 56.8 67.4(b) Own Activity Sector 59.0 53.8 58.6 68.0(c) Own Company 64.3 61.4 64.7 71.1Expectation IndexThe expectation Index reflects the perceptions of Indianindustry with regard to the performance of their company,their sector and the economy in the second half of2009-10. The Expectation Index gained 8.1 points over80% expect increased sales during October-March 2009-10 in comparison to April-September2009-10.70% expect an increase in production in thesecond half of 2009-10.78% expect increase in orders during October-March 2009-10.87% feel that cost of credit will not fall duringthe second half of 2009-10.96% expect employment to either increase orremain constant during the next six months.57% foresee increase in Input prices over thenext six months.74% feel that availability of credit has notincreased in the first half of 2009-10 in spiteof RBI’s effort, 62% expect no increase in thecoming six months.90% of exporter respondents do not expectexports to decline during October- March2009-10.Global economic Instability and slackeningconsumer demand remain the top concerns.28 | November 2009 Communiqué

surveyApril-September 2009-10, and a robust 13 points overthe corresponding period last year, reflecting higherexpectations of an economic turnaround by 2010-11.Outlook on the EconomyRevealing the outlook for 2009-10, 98% of the respondentsexpect GDP growth in 5% plus range with a majorityexpecting it to be in 6-7% range, an upward revisionfrom the previous survey range of 5-6%.On the inflation front, 82% of the respondents expect it tobe below 5% in 2009-10. Given that there are some visiblesporadic and nascent signs of economic recovery, 80% ofthe respondents expect the economy to return to normalgrowth in the second half of 2009-10 and beyond.Business Outlook: ConcernsThe survey also asked respondents about their mainconcern regarding the Indian economy. They weregiven a choice among the following issues: GlobalEconomic Instability, High interest Rate, Cost andAvailability of Labour, infrastructure and InstitutionalShortages, Slackening Consumer Demand, CurrencyRisks, Cost of Compliance, Surge in Import and BleakMonsoons Outlook. The responses reveal that GlobalEconomic Instability remains the top concern. SlackeningConsumer Demand and Infrastructural and InstitutionalShortages are the second and third major worries forIndian firms. The other concerns were, in the orderlisted by the majourity of respondents. Currency Risks High interest Rate Bleak Monsoon Outlook Surge in Import/Increase in Competition Cost and Availability of Labour and Cost of Compliance.As compared to the ranking of major concerns inthe previous survey, Infrastructural and InstitutionalShortages have moved up from 5th to 3rd position.This underscores the need for urgency on the part ofgovernment to address infrastructural shortages.Coverage and MethodologyCII’s 72nd Business Outlook Survey is based on a largesample size of 444 companies covering all industrysectors, including small, medium and large enterprisesfrom different regions. The survey drew responses fromacross the spectrum of industry groups both in publicand private sectors engaged in the primary sector,manufacturing activities and in services.The CII Business Confidence Index is constructed usinga weighted average of the Current Situation Index andthe Expectations Index. These indices are based onthree questions on the performance of the economy,respondent’s industry sector and respondent’s company.Respondents are asked to rate the current and expectedperformance on a scale of 0 to 100. A score above 50indicates positive confidence while a score above 75would indicate strong positive confidence.In the construction of the two sub indices, thehighest weight is given to the questions related to theperformance of the individual company, and the lowestweight is assigned to the questions on the economy.The weights are assigned based on the premise thatthe average respondent would possess more detailedand accurate knowledge on the current and expectedperformance of his/her own company than the economyas a whole.30 | November 2009 Communiqué

agriculture & food processingsectoral synergiesState Ministers Conference onFood ProcessingDr. ManmohanSingh, PrimeMinister of India,inaugurated the firstConference of State FoodProcessing Ministers on7 October in New Delhi.The Conference wasorganized by the Ministryof Food ProcessingIndustries to encouragethe State Governments tomap the food processingpotentialities, clusters fordevelopment, includingassessing the need fortechnical and skilledmanpower. The topicsof discussion were Infrastructure development, productdiversification and food processing technologies,institutional strengthening and capacity building,financing for food processing sector, government policiesand procedures, food safety, food regulation and R&Dand trade promotion in the food processing sector.Speaking at the Inaugural Session, Mr. Rakesh BhartiMittal, Chairman, CII National Council on Agricultureand Vice Chairman and Managing Director, BhartiEnterprises Ltd stated that only value addition canenable Indian agriculture to catch up with a 4% annualgrowth. Appreciating the government’s recognition of thefood processing industry Mr. Mittal said this sector hasbeen instrumental in raising farm yields and acceleratingagricultural growth.Dr Manmohan Singh, Prime Minister of India, with Subodh Kant Sahai,Minister of Food Processing Industries (right) and Rakesh Mittal,Chairman, CII National Council on AgricultureStressing that theGovernment alone wouldnot be able to implementthe value additionstrategies in a marketled scenario, Mr. Mittalurged value-adding agribusinessesto invest inthe farm sector and link itup to the markets, whichwould simultaneouslycatalyze the percolationof modern managementand technologies into thefarm sector, and generateincomes. For this tohappen, an appropriatepolicy framework has tobe put in place by the Government, he noted.Mr. Mittal requested that the processed food sector begranted a special status under GST and the combinedincidence of both centre and state GST should bezero for primary agro products and not more than 4%on processed food, as in many other countries. Hestrongly urged the food processing ministers presentfrom various States to take this up with their respectiveFinance Ministers.Mr Subodh Kant Sahai, Union Minister for FoodProcessing Industries, Mr Arun Maira, Member, PlanningCommission, Food Processing Ministers from the statesand distinguished officials from the central government,state governments, institutions and academia alsoparticipated in the conference.Dr Manmohan Singh, Arun Maira, Member, Planning Commission; and Rakesh Bharti MittalCommuniqué November 2009 | 31

agriculture & food processingLinking the Indo-French Agro-Food SectorsMs Anne-Marie Idrac,Minister for ForeignTrade, France,addressed CII members inan interactive session on26 October in New Delhi.Mr. Subodh Kant Sahai,Minister of Food ProcessingIndustries, India, alsoparticipated in the session,along with Mr. Ashok SinhaSecretary, Food ProcessingIndustries, Mr. Rakesh BhartiMittal, Chairman, CII NationalCouncil on Agriculture, Mr. P.I.Suvrathan, Chairman FSSAI,Mr. M K Jalan, ChairmanKeventer Group and seniormembers from the industry. The session was followedby business meetings between CII members and thevisiting French delegation.Ms Anne-Marie Idrac focused upon five missions whichthe two countries should aim at: framework and traceability food and development institutes.The French Minister called for strengthening the ties linkingthe Indian and French agro-food sectors, and said that allthe French companies in the delegation were eager forpartnership with India in the long run. She highlighted thatSubodh Kant Sahai, Minister of Food Processing Industriesand Rakesh Bharti Mittal, Chairman, CII National Council onAgriculture & Food Processing presenting the CII 10 PointAgenda on Wealth Creation in the Farm Sector to Anne - MarieIdrac, Minister for Foreign Trade, FranceFrance and India have starteda new strategic partnership twoyears ago, and share manycommon goals, one of thembeing to secure the accessto good and safe food for thegrowing world population.Agriculture and post harvestactivities need a primaryfocus, said Mr. Subodh KantSahai, noting that India andFrance can collaborate ona number of fronts in thefield of Agriculture and foodprocessing. He suggested aseparate working group forfood processing industries,and setting up a joint qualitylaboratory of international standards. India has abundantraw material and France has technology expertise, hencea complete food park with French technologies wouldserve as a successful business model that could bereplicated across the country, he said.Mr. Rakesh Bharti Mittal highlighted the key areas forlarger cooperation between India and France in agricultureand food processing: Food Processing Technologies,Food Regulations, Dairy, Poultry and Livestock Sectorand Application of Agri Biotechnology.Mr. Ashok Sinha suggested grape cultivation and wineproduction and research and development as two areasfor collaboration. Mr. P. I. Suvrathan, Chairman, FSSAI,focused upon the food safety scenario in India.Wrapping up the session, Mr. M K Jalan, Chairman,Keventer Agro, said that CII seeks greater cooperationwith France to address new and upcoming challengesand opportunities in modern day Agriculture.Ashok Sinha, Secretary, Food Processing Industries, M K Jalan, Chairman, Keventer Agro; Subodh Kant Sahai, Rakesh Bharti Mittal,Anne - Marie Idrac, and Jerome Bonnafont, Ambassador of France32 | November 2009 Communiqué

agriculture & food processingIndo-US Cooperation in Agriculture & Food ProcessingFood security is a major concern for the countrytoday, declared Mr T. Nanda Kumar, Secretary,Agriculture, India. Addressing a CII-USIBC Foodand Agriculture Executive Committee Mission to Indiaconference on ‘Indo-US Cooperation in Agriculture &Food Processing: Opportunities & Challenges’ in NewDelhi on 27 October, Mr T. Nanda Kumar welcomedprivate investments in sunshine sectors like foodprocessing, horticulture, fisheries, poultry, and dairyand highlighted the Government’s budgetary provisionfor 100% depreciation in cold chains and warehousingfor agriculture produce. He emphasized that privateparticipation coupled with technological innovations willlead to sustainable development in the long run.Mr. Rakesh Bharti Mittal, Chairman, CII National Councilon Agriculture and Food Processing, and Vice Chairmanand Managing Director, Bharti Enterprises Ltd, felt thatbiotechnology, agriculture marketing, food processing,food regulation and capacity enhancements are somekey areas of cooperation between India and the US.“Development of modern retail is the key to increasePaul Conway, Sr Vice President, Cargill Inc; Rakesh Bharti Mittal,Chairman, CII Agriculture Council, and T Nanda Kumar, SecretaryAgriculture, Indiaproduction, quality and efficiency as it will increaseengagement, consumer satisfaction as well assustainability. Today India is promising a positive social,economic and political environment and we are extremelyeager to be a part of the development process.“ saidMr. Paul Conway, Senior Vice President, Cargill, Inc.Other speakers also stressed that huge opportunitiesare available in India and the need for demand drivenproduction and organized retailing along with a free pricingregime to catalyze competition and innovation.Communiqué November 2009 | 33

sectoral synergiesenergyCII – Wartsila Round Table Session onGlobal Power Scenarios 2023Electricity is a fundamental factor in thedevelopmental process and economic growth ofany nation. India, with over a billion people, todayproduces 660 billion KWH of electricity. Over 600 millionIndians (equivalent to the combined population of USAand EU) still have no access to electricity, with limitedaccess to other clean and modern fuels. Enhancingelectricity supply and access therefore remains a keycomponent of India’s development strategy.In an effort to facilitate and catalyse the developmentprocess and understand the future power scenarioof India, CII, in partnership with Wartsila Corporationorganized a Round Table Session on ‘Global PowerScenarios 2023’ on 5 October in New Delhi. Theroundtable was organized to discuss, share and gatherfeedback on the findings of the report developed byWartsila Corporation ‘Global Power Scenario 2023.’The Global Power Scenario 2023 describes several possiblescenarios in electricity production and consumption withrelevance to India’s Power sector. The report discussesthree scenarios - three alternative futures: Green Earth Scenario discusses the role ofindividual citizens, consumers and voters in mitigatingclimate change. This scenario suggests using natural gasas a transition fuel, and calls for a focus on renewablessuch as wind and solar power. It also urges individuals toaccept the scarcity of resources and to live sustainably. Blue Globe Scenario describes a market-orientedprosperous world powered by coal and nuclear power. Thisscenario links the global recession 2008-2011 with increasingenvironmental disasters which give rise to the need foreconomic growth and the need to curb emissions.Ole Johansson (right), President & CEO, Wartsila Corporation, withChandrajit Banerjee, Director General, CII (centre) andChristoph Vitzthum, Group Vice President, Wartsila Services (left) Grey World Scenario describes the future asbleak, with scarce resources and energy security beingthe major issue around the world.The session featured participation from the industry –both PSUs and private sector, and financial institutionsand government leaders. Mr Subodh Bhargava, PastPresident, CII; Mr Ole Johansson, President & CEO, WartsilaCorporation, Mr Christoph Vitzthum, Group Vice President-Services, Wartsila Corporation,Mr Vipul Tuli Director,McKinsey & Company; Mr Chandrajit Banerjee, DirectorGeneral, CII; Mr R K Jain, Director-Technical, NTPC; Mr RV Shahi, Chairman & Managing Director, Energy Infratech;Mr Sudhir Wadhwa, CEO, NDPL; Mr Rakesh Sarin, MDWartsila India; Mr Jayant Deo, MD & CEO, India EnergyExchange; Mr Sanjeev Mehra; PTC India Ltd were amongthe key participants who attended the session and activelycontributed to the deliberations.CII Interactive Meet on NELP VIII/ /CBM IVThe hydrocarbon sector in India has seen aparadigm shift in the last decade. The sectorhas witnessed overwhelming interest fromlocal and global players against a backdrop ofcontinued exploration success. The production fromnew fields has started flowing in with more blocksalso being put on bidding through the NELP-VIII /CBM-IV bidding round.To assist industry in forging successful partnershipsfor biding during the NELP VIII/CBM IV rounds forexploration and production of hydrocarbons in India, CIIorganised an Interactive Meet on ‘Building Partnershipsfor Upstream Oil and Gas’ on 1 October in New Delhi.V K Sibal, Director General, Directorate General of Hydrocarbons,R S Pandey, Secretary, Petroleum & Natural Gas: Hari S Bhartia,Vice President, CII, and D N Narasimha, Raju, Jt. Secretary,(Exploration), Petroleum & Natural GasThe Meet brought stakeholders in the upstreamhydrocarbons sector, both existing and prospective, aswell as oilfield service companies from India and overseas,and government representatives, together to explore tie-34 | November 2009 Communiqué

energyups and form a consortium towards successful bidding.Mr R S Pandey, Secretary, Ministry of Petroleum andNatural Gas, Mr D Narasimha Raju, Joint Secretary,Exploration, and Mr V K Sibal, Director General, DirectorateGeneral of Hydrocarbons, addressed the Meet.The Indian upstream hydrocarbon sector, under NELPVIII/CBM IV, presents a unique opportunity for Indian andoverseas investors due to its well-established prospects,transparent bidding regime, huge domestic market andavailability of numerous fiscal and financial incentives,said Mr. Pandey, in his keynote address.There is no doubt about India’s hydrocarbon prospects,with over 100 discoveries in the past 10 years inthe country, two-thirds of which were under variousrounds of NELP, he said. Indian sedimentary basins arerelatively underexplored. Before NELP, only 11% of thetotal prospective area was explored. As of now, it hasincreased to 50%, while the target is to cover 80% area by2015-16. However, in the covered areas also, explorationhas not been very intensive and this certainly indicatesa big opportunity for E&P players in the hydrocarbonsector in India, the Secretary pointed out.Smart Grid – A New Era Interactive Energy InternetAMemorandum of Understanding on Smart GridTechnologies was signed between the Confederationof Indian Industry and the Confederation of BritishIndustry on 22 October, on the sidelines of the Exhibitionon ‘Climate Change: Technology Development & Transfer’on 22-23 October in New Delhi.The MoU was signed as a follow-up to the CBI-CIIStatement of Intent signed in 2008, in which theorganisations committed to working with each other onclimate change industrial initiatives and activities.The MoU would enable the two organisations to bringtogether the experience and expertise of their membercompanies on the design and implementation of SmartGrid technologies with due support and involvementfrom their respective governments.Smart Grid, broadly defined as a new era InteractiveEnergy Internet, is one of the key environment-friendlytechnologies for low carbon development, said Lord PhilipHunt, Minister of State for Energy, Department of Energyand Climate Change, UK. Congratulating CII and CBIfor embarking on this collaboration, the Minister addedthat Indian and British Industry have huge opportunity tocollaborate in this areas.Smart Grid Technologies can help India’s Power Sectorleapfrog to fulfill the ‘Power for All’ mission through a lowcarbon route, said Mr Sunil Wadhwa, CEO, North DelhiPower Ltd, and Chairman, CII Task Force on Power SectorMr Pandey also emphasized that India offers a huge andgrowing market for hydrocarbons. According to InternationalEnergy Agency projections, the average global growth inhydrocarbon consumption would be 1.6% till 2020, whilein India, consumption would increase at the rate of 3.2%per annum (double the world’s average), he noted.Alleviating investors’ concerns over the stability of thefiscal regime, Mr. Pandey affirmed that the incentivesbeing provided under the present NELP round are partof the Indian Finance Act, which is sacrosanct in nature.Incentives such as zero cess for deepwater blocks,complete exemption from income tax and only 5% royaltyfor first seven years are available for the present round.However, these may not be available in the future asprospectivity improves, he cautioned.Mr. Hari S. Bhartia, Vice-President, CII, and Co-Chairman& Managing Director, Jubilant Group, emphasized thenecessity to develop the natural gas sector in India asan alternative to coal from the point of view of climatechange mitigation strategy. He also pointed out thehuge opportunity that exists in India in terms of shalegas, which is by and large unexplored so far.Rajesh Menon, Sr. Director, CII, and Rhian Kelly, Head of ClimateChange, CBI, signing the MoU as Sunil Wadhwa Chairman,CII Task Force on Power Reforms & Restructuring, and CEO,NDPL Ltd and Lord Philip Hunt, Minister of State, Energy andClimate Change, UK, look onReforms & Restructuring. This concept would help us inreducing peaking power consumption, he added.With potential to be the ‘energy internet’ of the 21stcentury, the smart grid technologies hold promise to bringconsumers closer to the generators, giving access to realtime information on usage and cost of energy, therebypromoting efficient energy production and consumption.Communiqué November 2009 | 35

sectoral synergiesmedical technologyThe Indian MedicalTechnology industryhas taken impressivestrides. Beyond high growth,it has demonstrated anability to support the Indianhealthcare industry throughsuperior technologiesand willingness to serve.Global medical technologycompanies now view Indiaas a significant market, dueto its large population base.India’s emerging middle classnow demands better healthcarefacilities, up-to-date technologyand optimum results. Coupledwith a rise in disposable incomeamongst Generation Next, globalcompanies are looking forward tosustaining high growth ahead.the CII Medical TechnologyConference and Exhibition 2009,2nd Medical Technology Conference & Exhibition 2009Transforming Indian Healthcareheld on 7 October in New Delhi, focused on the theme‘Transforming India’s Healthcare Scenario – Role ofMedical Technology.’In his Inaugural Address, Mr. Dinesh Trivedi, UnionMinister of State for Health and Family Welfare,highlighted the role of the Government in providing therequisite impetus for the medical technology industryin India. The rapid increase in demand for healthcareservices has forced the government to rethink upon thedelivery models. Government is now ready to think outof the box and is proactively involving the private sectorto increase the reach of healthcare services, he said.Dr. Prathap C Reddy, CII National Committee on Healthcareand Chairman, Apollo Hospitals Group, in his specialaddress, called for accelerating the momentum forproviding healthcare access to all. He also called fordevising new healthcare solutions for a better tomorrowHealthcare Medical technologies are transforming healthcarelike never before, said Mr Anjan Bose, ConferenceChairman, and Vice President and Business Head,Philips Healthcare. He pointed out that today, high-endequipments and instruments are enabling the performanceof many complex surgical procedures with minimalincision, such as endovascular surgery, interventionalAnjan Bose, Conference Chairman & Vice President & Business Head,Philips Healthcare;. Chandrajit Banerjee, Director General CII;Dinesh Trivedi, Minister of State for Health & Family Welfare; andDr. Prathap C Reddy, Chairman, CII National Committee on HealthcareSam Pitroda, Chairman,National KnowledgeCommissionDr Surinder Singh,Drug Controller Generalof Indiaradiology or laparoscopy.Mr Chandrajit Banerjee,Director General, CII,outlined CII’s agenda onhealthcare including publichealth, healthcare servicesand delivery, and medicaltechnology.Addressing a special PlenarySession on ‘Partneringwith Technology to MakeHealthcare Accessible,’ Mr.Sam Pitroda, Chairman,National Knowledge Commission,said government partnerships withthe medical technology industrycan significantly improve healthindicators and provide high enddiagnostic services. These modelshave proven to be sustainable andsuccessful. We need to take upthese projects on a larger scaleso that the number of beneficiariescan increase significantly. But, for their successfulimplementation, a number of challenges need tobe overcome, requiring political will and risk sharingmechanism, to name a few, he said.Dr Surinder Singh, Drug Controller General of India,delivered a special address on the regulation of medicaldevices in India. While the Indian healthcare scenario ischaracterized by lack of standardization and ambiguityon regulatory standards, much has been achieved in thepharma segment in terms of optimal regulation,he said,adding that this needs to be replicated for the medicaldevices and healthcare delivery sector. Panellists at thissession emphasised that proper regulation can helpthe industry harmonize with the rest of the world, whilekeeping local needs in consideration. The discussionsalso examined the role of the government and privatesector in regulating this industry.The CEO’s panel on innovation and its impact on patientcare talked about how innovation has helped companiesachieve the dual objective of better patient care andincreased market size.The valedictory session discussed the changingdynamics of medical technology addressing expectationsof healthcare deliverers.36 | November 2009 Communiqué

competitivenesstowards excellenceEffective Inventory ManagementA kick off awareness session was held on 27 Octoberin Jodhpur to share the benefits of the programme.Marketing Strategy for SMEsA one day interactive workshop on ‘Marketing Strategy& Brand Communications for SMEs on 27 Octoberin New Delhi discussed the basics of marketing andsubsequently addressed specific issues of prime concernto the participating companies. The workshop wasconducted by faculty from IMT, Ghaziabad.Manufacturing Excellence MissionTraining on Effective Inventory Management, LudhianaA training programme on Effective Inventory Managementon 13 October in Ludhiana highlighted how inventorycould become one the two biggest assets on thecompany’s balance sheet, if managed effectively.7 QC Tools- Essentials of Lean ManufacturingThe training programme on 7 QC Tools - Essentialsof Lean Manufacturing on 26 October in Gurgaonupdated participants about one of important elementsof Lean Manufacturing: 7 QC Tools (popularly knownas problem-solving tools). Seven QC tools are used toanalyze the production process, identify major problems,control fluctuations of product quality, and providesolutions to avoid future defects. Statistical literacy isnecessary to effectively use these tools to improveinternal competitiveness.Cluster Programme for Energy EfficiencyThe Bureau of Energy Efficiency (BEE), Government ofIndia, in coordination with the CII LM Thapar Centre forCompetitiveness for SMEs has taken up an initiative toenhance the energy efficiency of limestone manufacturingunits across Jodhpur, Rajasthan through the BEE – CIIJodhpur Limestone SME Cluster Programme.Around 79 units in this cluster are engaged inmanufacturing limestone in the Jodhpur region ofRajasthan. The Centre will conduct energy audits andtechnology gap assessment studies for 30 of theseunits. For the remaining units, a preliminary energy auditassessing the overall energy use iand technology gapassessment will be conducted.Manufacturing Excellence Mission for World Class ManufacturingA CII-LM Thapar Center for Competitiveness ManufacturingExcellence Mission visited Hyundai Motors India Ltd,WABCO TVS, Rane India Ltd and Lucas TVS in Chennaion 27-28 October. The plant visits enabled the missionmembers to understand the best and innovative practicesof these companies to be more cost effective.Communication & Presentation SkillsToday professionals across the board need to improvetheir impromptu verbal communication skills to meet thechallenges of change. To hone these skills, the CII LMThapar Centre for Competitiveness for SMEs organized aWorkshop on Communication and Presentation Skills on30 October in New Delhi. The Workshop used practicalexamples, worksheets and memory jogging tools tofacilitate the learning process.12th TCI Annual Globe ConferenceAn international group of developers, researchers,business leaders and policy-makers met in Jyvaskyla,Finland, on 12-16 October for the 2009 TCI AnnualGlobal Conference. Their goal was to jointly create newsolutions for enhancing the competitiveness of businesses,regions and clusters. The programme provided inspirationfrom top experts, inputs from the Finnish innovationenvironment and local clusters, global experiences alongthe themes and innovative working methods.More than 350 delegates from 50 countries participated inthe conference to showcase different models of clusters.Mr Harinder Jeet Singh, Head, L M Thapar Centre forCompetitiveness, addressed the conference on ‘SMEClusters for Competitiveness – Value for Money ’.Communiqué November 2009 | 37

towards excellencegreen businessCII-Godrej Green Business CentreTwo key events on Green Business, the GreenBusiness Summit 2009 and the Investor Forum 2009,were held on 29 and 30 October in Mumbai.Pursuing Growth – Preserving Ecology, the themefor Green Business Summit 2009, Conveyed thecore message of the Mission on Sustainable Growth.The core purpose of the Mission is to ‘promote andchampion conservation of natural resources in IndianIndustry without compromising on high and acceleratedgrowth.’The Green Business Summit 2009 discussed New Ventures India (NVI), a joint initiative of the CII-Sohrabji Godrej Green Business Centre and the WorldResources Institute, Washington, DC organised the 4thedition of the annual flagship Investor Forum 2009 witha focus on Green Entrepreneurship – Opportunities andChallenges.The event featured information exchange and focuseddiscussions on the issues affecting all stakeholders inthe sustainability space, and business plan presentationsby innovative green enterprises.Both events focused on the latest and emerging greenbusiness trends, challenges and opportunities, providedglobal perspectives on green businesses and suggestedecologically sustainable business growth models.In her special address on 29 October, Ms Vicky Treadell,British Deputy High Commissioner for Western India, saidthat India, considering its current stage of development,robust growth projections and the new wave of lowcarbon technologies under development, is uniquelyplaced to leapfrog to a low carbon economy, skippinga couple of evolutionary steps.Mr Owen Jenkins, Counsellor & Head-Climate Change& Energy Unit, FCO-DFID, British High Commission,pointed out that on the issue of climate change, thereis global consensus on ‘what to be done’ but the ‘how’part of it is yet to be fully addressed.He said the Government of UK would support aframework for climate change which would be ‘Effective,Ambitious and Fair’ and would take into account ‘historicresponsibilities’ as well as ‘support developing countriesboth in technology and finance.’Mr Jamshyd N Godrej, Past President, CII, and Chairman,CII – Sohrabji Godrej Green Business Centre, feltthat climate change presents a huge opportunity tobusinesses for ‘interventions.’ He described the proactiverole played by CII in enabling such interventions in greenbuildings and energy efficiency.Dr Naushad Forbes, Chairman, CII Western Region,and Director, Forbes Marshall Pvt Ltd, called uponmore Indian industries to jump onto the bandwagonof green businesses, as multiple business models areevolving. Electric vehicles, for example, he said, offerpotential for Indian companies to become technologysuppliers to the Western world. He however pointedout that this sphere of business is greatly influenced bynetwork externalities like a supportive policy structure,and entrepreneurs in this space need perseverance aswell as long term focus.Mr Vijay Chandok, Chairman, New Ventures IndiaSteering Committee, CII – Godrej GBC, and Sr GeneralManager – SME, ICICI Bank Ltd, in his concludingOwen Jenkins,Counsellor & Head-Climate Change &Energy Unit, FCO-DFID, British HighCommissionVijay Chandok,Chairman, NewVentures IndiaSteering Committee,& Sr GM – SME,ICICI Bank LtdVicky Treadell,British Deputy HighCommissioner forWestern IndiaJamshyd N Godrej,Past President, CII& Chairman, CII –Sohrabji Godrej GBCDr Naushad Forbes,Chairman, CII (WR)& Director, ForbesMarshall Pvt Ltd38 | November 2009 Communiqué

green businessremarks, said that culture of ‘Green Entrepreneurship’ is visible in Indiaand the banking sector is keenly looking at the potential opportunity.During the event, an MoU was signed between CII and Invest in SwedenAgency (ISA) to further co-operation between India and Sweden inRenewable Energy and similar sustainable technologies.The MoU enables a strategic allianceand partnership between CII- GodrejGBC and ISA for collaborative R&Dprojects, incubation / facilitationof clean enterprises in India, andspecialised programmes / projectsin energy, environment, water andwaste management.The two events covered varioustopics in the sustainability domain,discussed national and internationalbest practices and witnessed aseries of panel discussions.Investor Forum 2009 held a Business Plan Competition where ten promisingcompanies (with products in the sustainability domain) put forth theirbusiness proposals before investors and pitched their case for investmentrequirements. The winners were Husk Power Systems, Sresta Natural Bioproducts Pvt Ltd and Noble Energy Solar Technologies Ltd.Interaction with US Ambassador to IndiaMr Timothy J Roemer,US Ambassador to India,visited the CII - GBCCentre in Hyderabad on21 October and had aninteractive session withCII - AP members.Working together in acollaborative fashion, bothgovernments are activelyengaged in a strategicExchange of MoU between Srikant Illuri,Executive Director & Country Head, Invest inSweden Agency, India, and S Raghupathy, SrDirector & Head, CII – Godrej GBCTimothy J Roemer, US Ambassador to India andY Harish Chandra Prasad, Chairman, CII Andhra Pradeshdialogue that will, among other things, continue our successful energydialogue and begin discussions on actions to address the seriouschallenges of global climate change, Mr Roemer said. He appreciatedthe role played by CII in promoting energy efficiency and resourcemanagement tools and techniques in Indian industry.Mr Roemer was escorted on a tour of the Centre, which is one of the greenestbuildings in the world, and was briefed on its energy efficient, eco-friendlyand sustainable features. He also planted a sapling in the premises.Seminar on Value EngineeringThe CII – Total Cost Management (TCM) Division organised a one-daySeminar on ‘Cost Effectiveness through Value Engineering’ on 15 Octoberin Bengaluru. The seminar introduced the concept, procedure and benefitsof Value Engineering across the functions and sectors of business. Thetechnical sessions discussed Value Engineering in Manufacturing, Logistics& Infrastructure, and Management.Communiqué November 2009 | 39

towards excellencequalityWorld Food Day CelebrationsA Food Safety Run & Walkathon advocated‘Food Safety & Quality for All’ as India Preparesfor Commonwealth Games 2010Ms Sheila Dikshit, Chief Minister of Delhi, flaggedoff the Food Safety Run & Walkathon organisedby the CII on the occasion of World Food Dayon 16 October in New Delhi. The event was themedon ‘Food Safety & Quality for All – India Preparesfor CommonwealthGames 2010.’A 2500-strongcontingent of schoolchildren, seniorcitizens, and peoplefrom all walks oflife enthusiasticallyparticipated in theevent. Booklets on‘Guidelines on FoodSafety & Quality forSchools, Colleges’,and ‘Food SafetyTips for All’ weredistributed amongstthe participantsto promote themessage ofmaintaining food quality standards.The flagging off of the Walkathon was followed bycultural shows and competitions on martial art, yoga,fancy dress, roller skating and painting.The CII Institute of Quality, through this initiative,presented its commitment to making safe, hygienic,and quality food available to all, while promoting andpropagating national awareness and adherence tostandards on Food Safety and Quality, under the SCCPprogramme.The World Food Day Celebrations on 16 October wereorganized by CII to increase awareness about standardsin Food Safety and Quality under the SCCP programme.The Standard Conformance and Cooperation ProgrammeSheila Dikshit, Chief Minister of Delhi, being escorted to the podium withChandrajit Banerjee, Director General, CII, and K N Shenoy, Chairman,CII Institute of Quality(SCCP) is aimed at improving access for Indian companiesin the US market and vice versa by boosting cooperationon standards and conformance issues. To achievethis objective, CII, the American National StandardsInstitute (ANSI) and Bureau of Indian Standards (BIS)have entered intoa partnership tobring stakeholdersin various industrysectors to harmonisethe standards in thetwo countries.With New Delhiset to host theCommonwealthGames 2010,this event was anendeavor to brandIndian cuisine asnutritious, healthyand hygienic. Anoath taking ceremonywas also held duringthe event to positionIndia as a safe food destination for the upcoming Games,by adhering to food safety norms at all the food servingestablishments, and at home.Mr. K N Shenoy, Chairman, CII Institute of Quality, saidthat the day’s celebrations would further strengthen thequality movement in India. India should remain committedto the cause of food safety and quality by inculcatingworld class quality consciousness, he said.Mr. Chandrajit Banerjee, Director General, CII, saidthat the day brought a significant opportunity to bringabout consciousness and awareness on health, foodsafety and quality standards. CII, through the Instituteof Quality had been proactively driving the concept ofquality over the last two decades, he added.40 | November 2009 Communiqué

qualityWorld Food Day celebration in New DelhiThe celebrations across the country directly impactedover 65,000 people. As part of the celebration, theIndian Railway Catering Tourism Corporation (IRCTC)too widely circulated CII produced promotional material,posters, and booklets besides handing out CII preparedguidelines to 25,000 travellers on Rajdhani and Shatabditrains on 16 October. The Young Indians (Yi) arm of CIIalso played a stellar role in spreading Food Safety &Quality messages across the country.World Food Day was proclaimed in 1979 by the Foodand Agriculture Organisation (FAO) to heighten publicawareness of the world food problem and strengthensolidarity in the struggle against hunger, malnutritionand poverty. It marks the date of the founding of FAOin 1945.‘CII in collaboration with the Ministry of Food ProcessingIndustries is delighted to be celebrating World Food Dayon 16 October across the country. These celebrationswill create widespread national awareness on FoodSafety and Quality with greater understanding ofconsumer rights and actions. Educational institutions,eateries and Industry will be further empowered withthe knowledge and importance of Food Safety andQuality. All this, especially in light of the ensuingCommonwealth Games, will ensure a step towardsIndia becoming a Safe Food destination.’K N Shenoy,Chairman, CII Institute of QualityMr. Sanjeev Kapoor, Celebrity Chef, and well-knownnutritionist, Dr. Shikha Sharma, were also present onthe occasion to support the cause. Mr. Kapoor observedthat the celebrations held on the World Food Day byCII highlighted the concern for positioning India as ahealthy nation. According to him, a healthy countrymust pay attention to hygiene, preparation and lifestyleissues in light of food consumption. People shouldmake themselves and their food healthier by sensitizingthemselves towards wholesome aspects of food, headded.‘Food Safety and Quality for All is a Movement acrossthe country. The Common Wealth Games is a greatopportunity to create Delhi as a model state.CII’s focus in this World Food Month is to help theDelhi State Government prepare Delhi as a Safe FoodDestination. CII pledges its support to upgrade foodprocessing and servicing establishments to safe andquality standards of food.’Chandrajit Banerjee,Director General, CIIDr. Sharma, Co-Chairman - Healthcare, Yi, and ManagingDirector, Nutri-Health Systems Pvt Ltd stressed that goodand healthy food provides lifetime benefits. She urgedthe gathering to take a pledge not to waste food andto utilize it in a healthy way.Other dignitaries who graced the occasion includedMr Rakesh Kumar Tandon, Managing Director, IRCTC,Mr B B Pattanaik, Managing Director, Central WarehousingCorporation Mr Balvinder Singh Kalsi, President & ChiefExecutive Officer, E.I.DuPont India, and Ms RumjhumChatterjee, Chairperson, CII Delhi State Council &Managing Director, Capacity Building Division, FeedbackVentures (P) Ltd.Interactive SessionIn a subsequent interactive session on Food Safety& Quality, Mr V N Gaur, Chief Executive Officer, FoodSafety Standard Authority of India (FSSAI), releasedthe publication ‘CII – Food Safety Rating Matrix forEateries’ based on the draft FSSAI Criteria for Audit ofFood Establishments.Communiqué November 2009 | 41

quality“The Government of India had decided to celebrate 16October as Food Safety & Quality Day in India, declaredMr. K K. Rajeswara Rao, Joint Secretary, Union Ministryof Food Processing Industries. He said that maintainingfood quality and standards was a continuous activityaiming at educating the stakeholders about the safetyaspects associated with edible products. There was anurgent need to reach out to class II and III cities forobserving food standards. He added that his Ministryhad undertaken consultation with religious boardslike Vaishno Devi and Tirupati to spread the messageof food safety. He urged that issues relating to safe,hygienic and standard food should be carried forwardas a multi-stake holder’s campaign.Mr. Gaur said that FSSAI, in the backdrop of theupcoming Commonwealth Games, was working onguidelines for food safety, checklist for food establishmentoperators and the criteria for audit of eateries. Hepresented a perspective on the Food Safety andStandards regime, and flagged concerns such as theneed for consumer awareness, low priority given to foodstandards, and inadequate testing infrastructure amongother related issues.Ms Meena Kapoor, Assistant Representative(Administrative), Food and Agriculture Organization ofthe United Nations, encouraged the global increasein official development assistances to curtail the foodcrisis. She said that a series of fundamental problemsin governance and administration had to be resolved inensuring safe food for all. As the prices of staple fooditems had increased during the global financial crisis,she said that achieving food security in times of globalcrisis was indeed a global priority.Mr. K N Shenoy said that the CII Institute of Qualitywas committed to aspects of quality in India acrossindustry, services, manufacturing, healthcare, educationand governance. “Through this initiative we want toensure that people maintain quality and standards attheir respective environments and introduce innovativeways to ensure that food became a quality criterion forall” he added.Mr. Uttam Chatterjee, Chairman, CII Expert Group onFood Safety and Quality, outlined how 36 cities through44 programmes across the nation would celebrate theWorld Food Day in India, involving approximately 65,000people. The thrust of the programme was to campaignfor food that was free from any hazards; physical,chemical or microbiological.Pan India CelebrationsDelhi Walkathon flagged off by Ms Sheila Dikshit, ChiefMinister, Delhi the Chief Minister of Delhi, Industry leaders andcelebrities Food Safety and Quality OathOn this World Food Day, 16th October 2009,we solemnly promise thatwe shall all strive to position India as a Safe Food Destination,in our preparation for the Commonwealth Games 2010,by practicing Food Safety and Quality,in all Food Processing and Serving Establishments,in our Homes, Schools and Colleges and in all aspects of our Professional and Personal lives.Rakesh Tandon, Balvinder Singh Kalsi, K N Shenoy, Sheila Dikshit, Chandrajit Banerjee,B B Pattanaik, Dr Shikha Sharma and Rumjhum Chatterjee taking the Food Safety & Quality Oath on World Food Day42 | November 2009 Communiqué

qualityCII-IRCTC PartnershipThe CII Institute of Quality and Indian RailwaysCatering and Tourism Corporation’s partnership onthe World Food Day reached out to 25,000 railwaypassengers in the Shatabdi and Rajdhani Expresstrains across the country through a set of 5 FoodSafety & Quality Posters, pamphlets on ‘4 Basicsfor Food Safety’ and ‘Guidelines on Food Safety &Quality for Schools and Colleges’ and a booklet titledFood Safety Tips for All.’World Food Dayhoardings on ParkStreet, Kolkata publicity materials and advertisements industries Eateries Schools, Colleges, IndustriesYoung IndiansChildren celebrating World Food Day inLucknow12 cities, 13 programmes, 9000 people reached,including 6500 poor people fed (over 3000 of themin orphanages and old homes) and 2500 running forthe cause.RegionsCelebrations covered 36 cities hosting 44 programmesultimately touching over 65,000 people.East: 8 cities, 18 programmes with over 22,000 peoplebeing targetted over the month through posters,hoardings, press meet, food distribution, CTV/cinemaslides, and awareness campaignsNorth: 6 cities, 6 programmes targetting 800 participants,awareness sessions, food to underprivileged childrenand awareness programmes on nutritional dietWest: 3 cities, 8 programmes targetting 5000 participants,awareness fliers and questionnaires, FSQ stickers, T-shirts,radio coverage, food for underprivileged children)South: 5 cities, 5 programmes targetting over 1000people, as various interactive programmes.Food Safety & Quality for All– India Prepares For Commonwealth Games, 2010The impending Commonwealth Games affords a greatopportunity to create Delhi as a model state andtrigger nationwide actions. CII IQ’s focus during WorldFood Month was to help the Delhi State Governmentto make Delhi and NCR into a Safe Food Destinationwith CII pledging its support to upgrade food eateriesto adopt safe food and quality standards. Once thisis achieved, CII expects to successfully strengthena nationwide movement and provide support to theGovernment towards positioning India as a Safe FoodDestination.Specific CII-IQ services offered include: – Company canteens– Eateries– Schools/Colleges– State Bhawans– Government departments– Others be used for communicating the organisationscommitment to food safety and qualityCII-Food Safety Rating Matrix for EateriesBased on the FSSAI draft criteria for audit of foodestablishments, CII haspublished the e-enabled‘CII-Food Safety RatingMatrix for Eateries’(CFSRM) to assess thelevel of implementationand compliance of FoodSafety and Quality.The various criteriasections covered in thematrix are and FacilitiesCommuniqué November 2009 | 43

quality The Matrix facilitates rapid assessment against eachcriteria implying unique scoring system. CII proposes toconduct pilot surveys using this matrix to help eateriesto upgrade their standards of food safety and quality.For more details, contact indrani.ghose@cii.in or k.debnath@cii.inStreet Food – Baseline SurveyCII, under the guidance of the Ministry of Food ProcessingIndustries, has developed a comprehensive plan forimproving Food Safety & Quality of Street Food inIndia.In line with the plan, a Baseline Survey of 4300 street foodvendors has been done across 9 cities (Delhi, Mumbai,Chennai, Bangalore, Kolkata, Guwahati, Agartala,Agra & Jaipur) with the help of various organisations,including CII.This has culminated into Guidelines for the schemeof ‘Upgradation of Quality of Street Food’. Availableschemes are displayed on the website of the Ministryof Food Processing Industries.As a proactive step, CII-IQ also initiated a publication‘CII- 14 Point Check on Food Safety for Street VendedFood’ as well as designed a model hygienic foodvending cart. The Bureau of Indian Standards (BIS) whiledeveloping national standards for street vended food(Draft Indian Standard- Food Safety Requirements forStreet Food Vendor: FAD15: 1951C) has acknowledgedthis publication as a reference material.CII in Food Safety & QualityDuring 2008-09, a series of awareness programmes onFood Safety & Quality (supported by MoFPI and fundedby QCI) were held in various locations to sensitisewidespread awareness about Food Safety & Qualityamong all stakeholders in the food chain. Kolkata CII-IQ has also been playing a leadership role in theTea Gardens in the North East which has culminated inAmalgamated Plantations becoming the first ISO 22000Food Safety certified estate in the Tea sector.Survey of Eateries in DelhiTo prepare Delhi as a ‘Safe Food Destination’ in viewof the forthcoming Commonwealth Games, Food Safety& Standards Authority of India (FSSAI) requested CIIto carry out a ‘“Preliminary Survey.’ Accordingly, someeateries were surveyed over two days to assess thestatus of hygiene and food safety in and around theeateries in Dilli Haat, Khan Market, South Extension,Gol Market and few other areas. The Preliminary Reportwas subsequently submitted to FSSAI. Some of theimportant observations of the survey, which needs tobe validated through a complete survey, include: areas requires a lot to be done with respect to drinkingwater degradable’ and ‘non-biodegradable’ have been placednear the eateries, but there seems to be hardly anyawareness amongst the users of these bins about theirappropriate usage. Most of the bins were found open /overflowing / damaged / full of flying insects with broken or leaking drain pipes, and were stinking in place the eateries is poor or packing food items in by-lanes with open andoverflowing drains In all about 50 eateries and surroundings weresurveyed. As desired by FSSAI a list of 886 eateriescomprising 430 from South Delhi, 249 from West Delhi,81 form Central Delhi, 67 from North Delhi and 59 fromEast Delhi from the website http:/www.foodiebay.comwas given to FSSAI with inputs regarding address andphone numbers of all the 886 eateries.For further details contact deepak.mathur@cii.in46 | November 2009 Communiqué

qualityQuality in EducationOof a nation’s progressand prosperity is thequality of education it impartsto its students. The higher thequality of teaching standards,the higher the talent pool thatpasses out after completingformal education. India Increpeatedly expresses concernover the severe shortage of‘employable youth’ despitehaving a huge ‘literate’ pool,pointing to the a huge mismatchbetween what the studentcommunity has learnt andthe actual requirement of theindustry. In today’s completelychanged economic set up withglobalization taking centrestage,there is an urgent need to inter-connect curriculumto the new competitive business dynamics, and alsonarrow the gap between the rural and urban studentcommunity.Reflecting this, the 12th edition of the NationalSummit on Quality in Education, held in Chennai on23-24 October, had the theme ‘Quality Education:Scalable with Inclusiveness.’Over 40 speakers addressed 500 delegates, includingof heads of institutions, principals, senior faculty andadministrators from both schools and higher educationM V Subbiah, Chairman, National Skill Development Corporation & Past President, CII lighting thelamp. Also seen Prof. Y S Rajan, Principal Advisor, CII, P Girish, Principal Counsellor, CII-IQ andK N Shenoy, Chairman, CII-IQinstitutions, on contemporary topics like Inclusivenesswith Excellence, Assuring Quality through AssessmentsAccreditations and Certifications, Learnings from othersectors, Integrating Technology for reaching people andInnovations in Education. In addition, 15 NGOs andservice providers in the field of education showcasedtheir successful models, contributions, products andservices at an exclusive exhibition.Summit ObjectivesThough the Education sector is currently receivingCommuniqué November 2009 | 47

qualitya lot of attention from the government and privatepromoters, the focus continues to remain urban.CII-IQ, which has been working in the educationexcellence domain for over a decade, felt this divideneeds to be bridged quickly to give every section ofthe society equal opportunity to pursue education asa fundamental right. The entire Summit saw domainexperts emphasize the need for appropriate handholdingof the ‘rural and other disadvantaged’ sectionsof the society to integrate that ‘sidelined’ section intothe mainstream.Inaugural ObservationsSetting the tone for the deliberations, Mr. M VSubbaiah, Past President, CII and Chairman, NationalSkills Development Corporation, floated the idea ofreintroducing the Gurukul system of teachingand learning. He said that this ancient systemhelps a child develop a holistic perspectivetowards life, which the present day curriculumseverely lacks. Another suggestion from himwas the adoption of the German model, where,after completion of 8th grade, a student is freeto choose a vocational course that interestshim/her. This basically helps the student toexcel in the field he/she pursues. He said:“Any person who spends atleast 10,000 hourspursuing his/her passion will become an expert in thatchosen field.”In order to develop capable, thinking youth, the role ofeducators is now gaining immense credence. Improvingaccess and Quality at all levels of education is now apriority not only for central and state governments butprivate institutions too. Mr. K N Shenoy, Chairman, CII-Institute of Quality, who inaugurated the National Summit,observed that educational institutions should look atevery possible avenue, be it leveraging technology,getting high-end faculty, putting in place enablinginfrastructure, etc… to reach out not only to urbanstudents but also the rural and other disadvantagedsections. He said: “CII has been promoting various‘educational excellence’ initiatives over the last elevenyears towards holistic and quality education. Theseinitiatives basically equip institutions with a set ofquality tools to provide highly structured and seamlesseducation processes.”Successful ModelsEducationists observed that empowering people withthe right skills and knowledge would automaticallyN Kumar, Vice Chairman,The Sanmar Groupenhance their quality of life and economic status.Mr. Anand Sudarshan, Managing Director and CEO,Manipal Education, felt that, with corporate India set torecord phenomenal growth in the coming years, it istime for both government and educational institutionsto adopt multi-dimensional teaching processes.He opined that an attitudinal change is very muchneeded both at government and institutional levelsto provide value and skill-oriented education to everycitizen of the country. He appealed to educationalinstitutions to adopt best practices across domains toseamlessly integrate both the rural and urbanstudent community with corporate India’srequirement.In his presentation on ‘Scalable with Inclusiveness,’ MrN Nagaraju, Regional Officer, Central Boardof Secondary Schools, said the governmentbody is looking to make the education processmore meaningful by providing maximumautonomy to institutions, and is working onformulating appropriate curriculum on par withglobal standards.Sharing the concept of inclusiveness withquality, Mr Anand Kumar, Director, Super30 Institute, Bihar, spoke of the urgentneed to give rural and other disadvantagedsections education on par with the other. Mr Anand hassuccessfully picked up students from remote villagesand coached them to get admission into IITs to provethat right teaching methodologies and apt hand-holdingcan mould rural students irrespective of background. Dr.(Flt Lt) M.A.Balasubramanya, CEO, Swami VivekanandaYouth Movement, reiterated that Education should notonly be contemporary and contextually relevant butalso accessible, affordable, appropriately leveragedwith technology, inclusive, sustainable and constantlyscalable.Mr. Sridhar Venkat, Executive Director, Akshaya PatraFoundation, pointed out that “you cannot teach a hungrychild. Education is one of the important cycles to takethe family away from poverty.”Speaking on ‘Learnings from other sectors’ MrAcharya KK, Managing Director, Chennai PetroleumCorporation, cited a recent survey on the quality ofeducation on a scale of 1 to 10, that placed Indiaat just 3.4 versus China which is 7.5.He urgedinstitutions to develop soft skills for the marginalisedand other disadvantaged sections. “There is a hugedemand for soft skills apart from engineers and48 | November 2009 Communiqué

qualitysoftware technicians to meet the growing demandthe infrastructure sector will throw up. It is the righttime to include vocational skills in the curriculum postmatriculation.’Ms Preeti Pradhan, Senior Manager, HR, Arvind EyeHospital, wanted every institution to put a processstandardisation in place to extend operations to a largermass base.The educationists opined that Higher Education is a hugechallenge for the nation, as over 170 million studentshave no excess to higher education today due toinadequate and uneven infrastructure across the country.Rural India, with 65 percent of the total population,has just 20 percent of the total professional colleges.One viable option to reach this mass base is throughtechnology. Mr. Shiva Prasath. P, Managing Director,Virtuosity Skill Development said that e-learning is animportant mass tool to reach out to a larger canvas.Virtuosity uses various teaching methodologies likeblended learning resources from Skill-off USA, DigitalLibrary from books 24/7 USA, Skills Assessments fromIKM Teck Chek, USA to provide quality training to theirstudents.In similar vein, Mr. Puneet Jhingan, Senior Vice PresidentInteractive Distance Learning Division, EducompVocational Education P Ltd felt that the huge gapbetween access and quality can be done only withtechnology. He said, on an average, students in onlinelearning conditions performed better than those receivingface-to-face instruction as the content can be madeup-to-date and easily distributed without compromisingon quality.In his valedictory address, Mr N Kumar. Past President,CII, and Vice Chairman, Sanmar Group suggestedthat courses on carpentry, masonry, plumbing, watchrepairing, shoe making, automobile repair, ceramics,pottery, horticulture and a host of other subjects couldbe offered to benefit millions of unemployed youth inthe country. He called upon industrial houses to adoptschools, especially in the rural regions.The participants got hands-on-experience on varioustechnological innovations and teaching aids of 30exhibition at an exclusive exhibition.Next SummitThe CII Institute of Quality has already announcedits 13th edition of the National Summit on Quality inEducation, to be held in the Western region, on 25–26September 2010.Observations & TakeawaysAlliances based on comparative advantages, finding amatch and a need for research and new data betweenIndia and Europe are essential, as only this will trigger trueinnovation.Krista Knopper,Maastricht University India StrategyQuality education should focus on human values, literacy andvocational skills. It is more than merely fulfilling a curriculum.It should nurture hidden capacities in every child and groomthem into responsible citizens.Dr. (Flt Lt) M.A.Balasubramanya,CEO, Swami Vivekananda Youth MovementBy developing a quality culture, teaching or delivery ofeducation becomes not a burden but a highly satisfyingexperience.Cherian C.George,Principal, Kendriya Vidyalaya IIT PowaiAccreditation to schools should be given only on the basisof quality. We need to continuously evaluate and assess theimpact of education initiatives and programmes.Agnes Nathan, Vice President, Learning Links,representing Education Quality Foundation of IndiaLeveraging technology is a major way out to reach out to themasses, but connectivity and penetration of technology is amajor hitch. If this aspect is taken care of more holistically,inclusiveness in Education can be achieved much faster.”Y S Rajan,Principal Adviser, CIIThrough this interaction I got to know of a wide array ofeducation models and tools on a single platform. I will chooseone of the models and recommend it to my governmentstate to promote quality education.Dr. Suman Karndikar, Educationist, and Chairman,Core Group –School Education Reforms, MaharashtraDuring the last four Summits, I have been taking homesome learnings which I apply in my institution. This yeartoo I have picked a couple of tools that will further enrichmy institution’s goal of quality education.Dr. Sheela Ramachandra,Principal, PSG College of Arts & ScienceThe supporting staff of any institution plays a pivotal role inenhancing and integrating various processes so that facultyand students have a seamless learning experience. Like thefaculty, the staff should also be recognized and rewarded.Senthil Ganesh,Managing Trustee, RVS TrustInclusiveness means getting everybody on board. It alsomeans accountability, appropriateness in whatever we doin the educational institution.V M Velmurugan,CEO, Velammal Educational TrustCommuniqué November 2009 | 49

MSMEsfinanceFinance for MSMEsDr K C Chakrabarty, Deputy Governor, RBI, addressing the Conference on Finance availability for MSMEs. Also seen: H P Kumar, CMD, NSIC,and Salil Singhal, Chairman, CII National MSME CouncilDr Manmohan Singh, Prime Minister of India, saidon 26 August that his Government is committedto double the flow of credit to MSMEs in fiveyears. He added that greater availability of credit cancontribute to the faster modernization and expansionof these enterprises and the augmentation of theirproductivity and competitiveness.Responding to the Prime Minister’s statement, CIIorganised a conference on Finance Availability forMSMEs, in New Delhi on 10 October, to highlight thebest lending practices for MSMEs by various banks andthe alternate options for MSMEs to raise finance.Seeking to achieve modes for adequate finance forthe growth and sustenance of MSMEs in India, Dr K CChakrabarty, Deputy Governor, Reserve Bank of India,announced that there is no dearth of credit in thesystem and “no bank shall refuse credit” to viable andtransparent enterprises. Dr. Chakrabarty said “the spiritof entrepreneurship in India is kept alive by MSMEs”in an impassioned appeal to MSMes to adhere to selfregulation for credit worthiness.Dr. Chakrabarty described MSMEs as the best vehicle forinclusive growth, to create local demand and consumptionand also to fight the global meltdown. Commenting on theavailability of finance to these enterprises, he agreed thatonly 4-5 % MSMEs are covered by institutional funding,given that approximately 95 % of villages are not coveredby banks. The RBI would not set a target on funding andwill ensure that finance is available to all, he stressed,urging angel investors and venture funds to move into theSME sector. He also suggested that rating agencies forSMEs rshould adopt the scoring model which simplifiesand makes the process more efficient.Dr. H P Kumar, Chairman and Managing Director,National Small Industries Corporation (NSIC) said thatthe high and diverse prime lending rates of banksrequire benchmarking and uniformity, and that banksneed to follow innovative international models for bettercredit flow to the MSMEs sector. Although instrumentslike credit guarantee schemes and specialized ratingagencies are present, there is huge reluctance and lowawareness amongst small enterprises to take advantageof them, he said, calling for alternative credit optionslike venture funds and factoring.Mr. Salil Singhal, Chairman, CII National MSME Council,urged every enterprise to follow good governance andfinancial management policies to avail of finance fromfinancial institutions to create a sound entrepreneurialecosystem. He asked the banks to streamline theirprocesses of assessment of credit worthiness, andbelieved that convergence on formats would promoteefficiency.Mr Singhal pointed out that matching credit (workingcapital) arrangements of the banks with the cash flowcycle of the business, either makes or breaks a SME.The changing environment and growing competition callsfor ‘out of the box’ thinking among the lenders. Instrumentssuch as Factoring, Venture Capital, Bill discounting, PrivateEquity etc have replaced the traditional cash credit limitsfor borrowers, he added.50 | November 2009 Communiqué

surveyMSMEsEconomic Upturn for MSMEs round the corner:CII MSME Outlook SurveyPresent and Past MSME OutlookThe second quarter of the year 2009-2010 (July –September) may be the upturn point for the Indian Micro,Small and Medium Enterprises (MSMEs), according to theMSME outlook survey, conducted by the Confederationof Indian Industry.In the survey analysis for the second quarter of 2009, 45percent respondents registered an increase in turnover,42 percent registered an increase in production, and 38percent registered an increase in order booking vis-à-visthe first quarter of 2009- 2010.Earlier, during the first quarter of 2009- 2010, 37 percentof respondents had registered an increase in productionand inventory. However, 42 percent and 43 percent of therespondents had registered a decline in their turnoverand profitability respectively, vis-à-vis the last quarter of2008-2009, according to the survey.The positive shift (in turnover & order booking) in Q2vis-à-vis Q1may be attributed to the “Trickle downEffect” of the various measures announced as part ofthe stimulus packages announced by the Governmentof India and the Reserve Bank of India.It may be recalled that the first stimulus packageincluded measures such as reduction in CENVAT by4 %, interest rate cut of 0.5% for small and 1 % formicro enterprises by PSU banks, export support byinterest subvention of 2 %, reduction in lock in periodunder Credit Guarantee Scheme from 24 to 18 monthsand additional plan expenditure of Rs 20,000 crores.Also, the second stimulus package included initiativessuch as restoration of DEPB rates till 31 December2009, duty drawback benefits for certain products likebicycles, agricultural hand tools, and specified categoryof yarns with retrospective effect from 01/09/2008,which were expected to have a beneficial impact forthe MSMEs.At the same time, initiatives such as Special Monthlymeeting of State Level Bankers Committees (SLBC) tolook into the matters between MSMEs and banks notresolved within a fortnight, Enhancement in the guaranteecover under Credit Guarantee Scheme from 50% to 85%for loan up to Rs 5 lacs and Rs 5,000 crore RBI creditto EXIM Bank for pre and post shipment credit, werealso expected to ease the liquidity for MSMEs.Future MSME OutlookThe positive sentiment built up in the second quarterof 2009 – 2010 is expected to carry forward into thethird and the fourth quarter of 2009-2010, reveals theMSME Outlook survey.An assessment of the expectations of the MSMEs forthe third quarter (October December) of 2009-2010,indicates that 54 percent respondents expect an increasein turnover, 43 percent respondents expect an increasein production and 45 respondents expect an increasein their order bookings. Also 31 and 37 percent ofrespondents expect an increase of their export andprofitability, respectively, vis-à-vis Q2. In the last quarterof 2009- 2010, 51 percent of the respondents expect anincrease in their turnover, 43 percent of the respondentsexpect in production, and 40 percent expect an increasein their order bookings.Factors Inhibiting GrowthAs part of the MSME Outlook survey, an analysis ofvarious factors that inhibit the growth and developmentof MSMEs in India, revealed that the 10 key issues thatentrepreneurs found major impediments to their growth,in order of decreasing priority are1. Delayed payments2. High cost and lack of availability of credit3. Absence of Government support for growth4. Lack of availability of risk capital5. Complex indirect tax structure6. Norms for collateral/margin requirements7. Infrastructure bottlenecks8. Absence of preference for being a part of the supplychain for the Government9. Labour laws10. Lack of usage of ICT.Mr Salil Singhal, Chairman, CII National MSME Councilobserved that it appears that the worst of the crisisperiod is over and a turnaround seems within sight formost of the industry. He added that CII had submitteda Development Agenda for the Indian MSMEs, to DrManmohan Singh, Prime Minister of India. This wasfollowed by the constitution of a High Level TaskForce force, under the Principal Secretary, in the PrimeMinister’s Office (PMO), to look into the issues beingfaced by the MSMEs.Communiqué November 2009 | 51

surveyPRODUCTIONKey IndicatorsIncrease%Decrease%Production (Q1 2009-2010) 37 28 9Production (Q2 2009-2010) 42 20 9Expected Production (Q3 2009-2010) 43 15 11Expected Production (Q4 2009-2010) 43 14 14INVENTORYInventory (Q1 2009-2010) 37 20 17Inventory (Q2 2009-2010) 32 23 17Expected Inventory (Q3 2009-2010) 26 15 25Expected Inventory (Q4 2009 2010) 25 15 28TURNOVERCII MSME Outlook SurveyAssessment on MSME PerformanceTurnover (Q1 2009-2010) 38 42 8Turnover (Q2 2009- 2010) 45 32 12Expected Turnover (Q3 2009-2010) 54 18 12Expected Turnover (Q4 2009-2010) 51 20 12ExportExport (Q1 2009-2010) 17 15 25Export (Q2 2009-2010) 22 18 20Expected Export (Q3 2009-2010) 31 12 15EXpected Export (Q4 2009-2010) 26 14 23ORDER BOOKINGOrder Booking (Q1 2009-2010) 31 29 15Order Booking (Q2 2009-2010) 38 20 20Expected Order Booking45 17 14(Q3 2009-2010)Expected Order Booking40 17 17(Q4 2009-2010)INPUT PRICEInput Price (Q1 2009-2010) 40 14 14Input Price (Q2 2009-2010) 43 3 15Expected Input Price (Q3 2009-2010) 32 5 26Expected Input Price34 0 25(Q4 2009 - 2010)INTEREST RATEInterest Rate (Q1 2009-2010) 15 12 29Interest Rate (Q2 2009-2010) 11 11 32Expected Interest Rate9 14 32(Q3 2009-2010)Expected Interest Rate12 9 32(Q4 2009-2010)PROFITABILITYProfitability (Q1 2009-2010) 22 43 14Profitability (Q2 2009-2010) 32 29 18Expected Profitability (Q3 2009-2010) 37 25 15Expected Profitability (Q4 2009-2010) 35 20 22CREDIT AVAILABILITYCredit Availability (Q1 2009-2010) 9 15 35Credit Availability (Q2 2009-2010 ) 12 8 35Expected Credit Availability12 8 37(Q3 2009-2010)Expected Credit Availability(Q4 2009-2010)12 8 35Nochange %52 | November 2009 Communiqué

manufacturing servicescoalCoal Minister Proposes Independent RegulatoryBody for SectorCII, in collaboration with Coal IndiaLtd, organised a National Seminaron Coal Mining: Partnership forGrowth on 1 November in Kolkata.The Seminar discussed the policyinitiatives of the government in thecoal mining sector, captive mining,regulatory and infrastructure issues,adoption of state of the art technology,and environmental safety.The coal sector needs to grow at over 9% every year tomeet the nation’s requirement of this resource, said Mr.Sriprakash Jaiswal, Union Minister for Coal, Statistics &Programme Implementation, who was the Chief Guestat the seminar. Noting that coal production in India hasbeen 493 million tons in 2008-09 versus a consumptionrequirement of about 550 million tons, he called fora ‘ vision’ for this industry with innovative plans andeffective solutions such as satellite technology-basedremote sensing, modern state-of-the art technologyfor excavation, accident free mining, processing andtransportation. The Minister also spoke on deregulationand opening up of the sector to private players withthe help of State – owned organisations. He saidthe government plans to constitute an independentregulatory body which will look after issues like allocationOpportunities in Romania for MSMEsAn industrial delegation from Romania, as partof the Romanian Economic Mission, visitedIndia recently to explore and strengthenbilateral trade between India and Romania.The Romanian delegation was led by Mr RaduZaharia, Director General, Romanian Ministryof SMEs, Trade and Business Environment(Foreign Trade Department).Addressing a CII seminar on Opportunities in Romaniafor MSMEs, in New Delhi on 26 October, Mr Zahariapresented five strong reasons to invest in Romania: He also expressed interest in a longterm associationwith CII to facilitate Indian investments to Romania.Ms Valerica Epure, Ambassador of Romania in India, saidthat Romania’s improved physical infrastructure was aSriprakash Jaiswal, Minister of Coal andPartha Bhattacharyya, Chairman, Coal India LtdValerica Epure,Ambassador ofRomania in Indiaof coal blocks, approval of minesand competitive price regulation. Thesector also needs better logistics,more dedicated freight corridors andbetter equipped ports, he said. Callingfor better environmental practices,he put special emphasis on cleancoal technology and lesser use ofexplosives in mining processes.Mr. Partha S Bhattacharya, Chairman,Coal India Ltd, noted that though coal has been identifiedas the fastest growing industry sector in India, it is farbehind in meeting the consumption demands of thecountry. This requires identifying more new coal miningblocks, he said, which, however, raises challenges likeland acquisition and environment for industry. He invitedmore public-private partnerships for better technologyand economical production.Mr. Bikash Mukherjee, Chief Executive Officer, Emta Groupof Companies, flagged concerns like lack of co-ordinationbetween Central and State Governments and urged for a‘Single Window’ system and better incentives for privateplayers in PPP ventures. In similar vein, Mr. VRS Natarajan,Chairman and Managing Director, BEML Ltd, called foraccelerating coal production, more PPP ventures andSingle Window system for faster clearances.rallying point for foreign investments. She alsohighlighted the country’s well-developednetwork of mobile telecommunications, highlydeveloped industrial infrastructure, oil andpetrochemicals and existence of well-knowninternational banks.Mr Salil Singhal, Chairman, CII NationalMSME Council, said that continued effortsand contribution from industry from both sides haveresulted in fruitful business collaboration, resulting ina 17.88 % rise in bilateral economic activity betweenIndia and Romania in 2007-08, over the previousyear.The seminar was followed by Business to Business meetsbetween Indian SMEs and the members of the RomanianEconomic mission, on sectors such as manufacturing,automotive parts, IT and communication, electric andelectronics, wood processing, construction materials,textile, food processing, infrastructure, outsourcingand logistics.54 | November 2009 Communiqué

iprtech trackSession with Custom Officials onCounterfeiting & Piracy-Border IssuesCounterfeiting and Piracy is one of the fastestgrowing economic crimes in the world today.It threatens the economies of developed anddeveloping countries alike, undermines trading relations,endangers public health and safety, and affects newinvestment for economic growth.Both industry and the enforcement agencies need tostep up their efforts andbecome more innovativeto combat counterfeitingand piracy. It is criticalfor all the stakeholdersto understand theimplications ofcounterfeiting and piracyfrom the legal, security,societal, economicaspects, and also tobe aware of the latesttechnologies being usedby industry and government in other countries to detectand fight this menace.CII, under the aegis of the National Committee of IP Owners,has launched major initiatives against Counterfeiting andPiracy. The main thrust of the initiative is to sensitize thegeneral public, enforcement agencies and to engage andimpress on the Government for policy reforms.As a follow up of this initiative, CII, in collaboration withthe National Academy of Customs, Excise and Narcotics(NACEN) and with support from the United States Patentand Trademark Office (USPTO), organized interactivesessions on Custom Rules / IPR rules with CustomOfficials in Chennai and Mumbai recently.Addressing the inaugural session in Mumbai, Mr. K RBhargava, Chief Commissioner of Customs (Import),Nhava Sheva, called for increased cooperation betweenindustry and government bodies to curb counterfeiting.‘Counterfeiting and Piracy affect businesses, governmentrevenues, and jobs and also victimizes the consumer.Counterfeiting is prevalent across the board, from aircraftparts to pan masala and from cigarettes to cosmetics.Over 40% of the auto spare parts industry is counterfeited.Brand holders, government and the consumers shouldwork together as it is everyone’s problem,’ he said.Counterfeiting of currency notes was discussed as apressing issue for large and open economies today.The concern about Chinese exports was also debatedat length. Over 20% of Chinese exports in 2008 werecounterfeits and over 99.8% of seizures that yearwere counterfeited products coming from China. Thepanel agreed that apart from import, more stringentexport checks for counterfeiting and piracy should beinstituted.Mr. Dominic Keating, FirstSecretary, US Embassy,said the US government isconstantly working towardsrevising US currencynotes and introducingadditional counterfeitdetection methods. ‘Indiaand the United Statesare popular destinationsfor IP infringements andcounterfeiting and acreative public-privatecollaboration is required to counter IP infringements andto institute effective IP regime,’ he said.Dominic Keating, First Secretary, US Embassy, Sunil Jain, AdditionalDirector, Regional Training Institute, National Academy of Central Excise &Narcotics and K R Bharghava, Chief Commissioner of Customs, MumbaiMr. Sunil Jain, Additional Director, Regional Training Institute,NACEN, showed how technological sophistication aidsorganized crime in taking counterfeiting to newer heights.‘Approximately 7% of world trade is on counterfeitedgoods and services. This jeopardizes millions of jobs andnegatively impacts innovation and R&D. The counterfeitingof medicines and lifestyle drugs poses immense threatto public health and safety. We need to popularize IPRrecordation and need more proactive information sharingby rights holders,’ he said.The technical session was addressed by eminentspeakers representing sectors like FMCG, auto andmusic. Mr. Anubhav Jain, Head - Brand Protection,Mercedes Benz India Pvt Ltd quoted a SIAM study thatidentifies annual losses of upto $ 1 billion to the Indianautomobile industry due to counterfeit spare parts. Thestudy also points out that an alarming 32-47% of allautomobile parts in India are counterfeits. Mr. SavioD’Souza, Secretary General, The Indian Music Industry,said that in the last 6 years, the turnover of the industryhas dropped from Rs. 1200 crores to Rs. 600 croresmainly due to pirated music CDs and DVDs.The session was attended by more than 30 seniorCustoms officials.Communiqué November 2009 | 55

tech trackautomobilesAutomotive R&D trends 2015Tamil Nadu TechnologyDevelopment and PromotionCenter (TNTDPC) organisedthe 2nd edition of ‘AutomotiveR&D trends 2015’ on 23 Octoberin Chennai. The annual conferencedeliberates on future technologiesand evolving trends in technologyusage and adoption in the AutomotiveIndustry, sharing new technologiesunder development and researchexperiences.The recession and its effects havecreated an ever increasing demandfor innovation in the automotiveindustry. According to a Bloombergstudy, the R&D spends of auto majorshave not been affected by the downturnand remain at roughly 4% of sales. Thisshows that the industry is moving in theright direction. The current state of theenvironment and increasing awarenesson climate change and pollution requirehuge investment in technology researchto provide a definitive way forward.The conference found universal acceptancethat Green Technologies will be thetechnologies of tomorrow. The eventalso presented a broad perspective ofadvancement in electronics, hybrids and techniquesto manage congestion in cities. It was also a place forcompanies to take pride in their inventions.The Indian Automotive Industry has the potential to growby 20 million in the next 25 years, but the challengelies in overcoming existing bottlenecks such as lack ofproper skill sets, dependence, high CO 2emissions etc,said Dr. Arun Jaura, Conference Chairman, and VicePresident - Technology & Head, Eaton India EngineeringCenter, Eaton Corporation. “Through collaborative R&Dand cost effective engineering we have to producesustainable quality products for mass markets that provideProf. M.S. Ananth, Director, IIT Madras addressing. Also seen Dr. V.Sumantan, ExecutiveVice Chairman, Hinduja Automotive Ltd , and Dr. Arun Jaura, Conference Chairman & VP –Technology, Head, Eaton India Engineering Center, Puneconnectivity, safety and fuel efficient drivingexperience,” he said.Dr. V. Sumantran, Executive Vice Chairman,Hinduja Automotive Ltd said technologyis needed to reduce energy usage,create smaller, lighter vehicles, routeguidance technologies, next gen dieselengine development, thermodynamicdevelopments and many more enablingopportunities. “Technology must meet theaffordability challenge, usability challengeand satisfy the desirability challenge.”Prof. M.S. Ananth, Director, IIT, Madras, saidthat research parks are the need of the hourto facilitate new innovations in the automotive industry. Hesaid the Tamil Nadu government has allotted 11.5 acres fora research park in Chennai, and is sanctioning a loan ofRs. 100 crores for this. He urged the Indian universities tofocus more on the automotive industry in their curriculumand include industry inputs in their course material.The conference sessions were built around the fourpillars of 56 | November 2009 Communiqué

India Inc Connects with Rural IndiaTechnology is a potent and powerful tool to drawrural India into the country’s impressive growth story.Recognizing that providing easily accessible servicesat an affordable cost to those who live in villagescan accelerate growth and facilitate socio-economicchange, CII organized a Seminar on Enabling RuralDevelopment via Technology and Connectivity inpartnership with Intel Corporation, BSNL, and HCL on27 October at New Delhi.The primary objective was to discuss how transformativetechnologies i.e. broadband internet and affordablecomputers could takethe Indian Government’sBharat Nirman ruraldevelopment agenda,as also the CII agendaof creating sustainable,inclusive growth, forward.The seminar yielded usefuldiscussions on strategiesthat could spur economic,educational and healthopportunities in Indiaby expanding access totechnologies.“Information Technology and internet connectivity playa pivotal role in overall economic development andare the epicentre of a knowledge economy, connectingpeople to government, people to people, and people tobusinesses” said Mr Sachin Pilot, Minister of State forCommunications & IT, India, who was the Chief Guestat the inaugural session. Affordable internet connectivitywould give people in rural areas access to educationand to health services, he added.Mr Pilot said the government is in the process ofdeploying 100,000 common service centres with internetconnectivity. There has beengood progress on Nationale-Governance Plan (NeGP) toprovide access to governmentservices for every citizen,he said, adding that thegovernment would auctionspectrum for 3G and WiMAXwithin this financial year. Thegovernment believes thatbroadband wireless technologies are perhaps the onlyway to provide a vast rural population an affordablemethod to access data, he said. Government is workingwith industry to facilitate affordability of internet deviceslike PCs, net-books, and net-tops through localizedmanufacturing and technologies, while steps havebeen initiated for localized content portal development,he said.Mr Paul S Otellini, President and CEO, Intel Corporation,applauding the Indian Government’s vision forrural development through Information Technology,acknowledged that the IT industry in India employs17 million people, and comprises of 6% of the totaleconomy, making thecountry the leader in IT.Commenting on BSNL’scollaboration with Intel tobring in fast and reliableInternet connectivityto much of India, MrKuldeep Goyal, Chairmanand Managing Director,BSNL, said that extendingmobile WiMAX to millionsof people in rural Indiawould bridge the digital divide in the country.Atul Singh, Chairman, CII National Committee on Rural Developmentand President & CEO, Coca-Cola India; Sachin Pilot, Minister of State forCommunications & IT; Paul S Otellini, President & CEO, Intel Corporationand Ajai Chowdhry, CEO, HCL Infosystems LtdN V Ramana, Chairman, Indian Society of AgribusinessProfessionals; Sangita Reddy, MD, Apollo Hospitals Enterprise Ltd;Dr Sudhir Kapur, Chair CII-NR Skills & Education Sub Committee &MD & CEO, Countrystrategy Business Consultants; Harish Bahl, GM,Rural Banking Division, SBI and Nakul Pasricha, Asst. VP, DrishteeDevelopment & Communication LtdMr Ajai Chowdhry, Chairman, CII National Committeeon Technology and Innovation, and Chairman and CEO,HCL Infosystems Ltd, spoke of the need to not onlybring high speed broadband to villages but also lowcost devices for accessing it – be it a PC or mobile. Heshowcased two affordable devices, Net-top and Netbook,which are in the development stage and will besoon available to people.In his welcome address, Mr Atul Singh, Chairman, CIINational Committee on Rural Development, and Presidentand CEO, Coca Cola India, said that InformationTechnology is a key enabler for rural development andaccelerating growth enginesin areas such as health,education and bankingin ways that would havea multiplier effect on theeconomy.Panel DiscussionDuring the Discussion onConnectivity - AcceleratingCommuniqué November 2009 | 57

development initiativesDevelopment in the Service Sector, panelists discussedthe initiatives and solutions facilitated by internetconnectivity for providing basic services in rural andremote areas.Ms Sangeeta Reddy, Managing Director, ApolloHospitals Enterprise Ltd, discussed healthcare issuesand emphasized the immediate need for reachingout to underprivileged citizens of India. Mr HarishBahel, GM, Rural Banking Division, State Bank ofIndia, said IT enabled services have the potential toreach rural consumers banking services tailored totheir requirements. Mr N V Ramana, Chairman, IndianSociety of Agribusiness Professionals, described howfarmers in a few pockets of rural India are now able toprocure higher prices for their produce as a result ofinformation sharing provided by connectivity. Mr NakulPasricha, Assistant Vice President, Drishtee Developmentand Communication Ltd, discussed the potential of ITenabled services.Reaching the UnderservedOne third of India’s one billion plus population areunderserved by initiatives to improve the quality of lifeacross parameters that include access to clean water,improved irrigation techniques for better outcomes inagriculture, and improved livelihoods on a sustainablebasis. While a number of stakeholders are workingto bring about transformative change in these andother areas, corporate India believes that Foundationscan serve as catalysts for change by ensuring thatgood intentions are backed by efficient execution ofprogrammes.In a new initiative launched by CII in partnership withthe International Finance Corporation, major playersgathered at a roundtable in Delhi on 4 November to shareexperiences and discuss the way forward on SustainableDevelopment and the Role of Foundations. Mr AtulSingh, Chairman, CII National Committee on RuralDevelopment, and President, Coca Cola India, said thatcorporates could use Foundations to build capacity andcapability through community involvement. Mr BharatWakhlu, Co-Chair, CII CSR Sub Committee (NorthernRegion) and Resident Director, Tata Services Ltd,pointed out that it was vital to listen to the voices ofthe communities one sought to support as the era ofpaternalistic philanthropy was over.Ms Rachel Kyte, Vice President for Advisory Services,IFC, explained the role of IFC in private sectordevelopment, from project financing to equity forpartnership for development, to debt finance, and therapidly growing advisory business. IFC, a member of theWorld Bank Group, fosters sustainable economic growthin developing countries by supporting private sectordevelopment, mobilizing private capital, and providingadvisory and risk mitigation services to businesses andgovernments. New investments totaled $ 14.5 billionin fiscal 2009, helping channel capital into developingcountries during the financial crisis.Innovative ideas would help make growth inclusive, saidMr Ashish Karamchandani, Partner, Monitor Group, whobelieved that different business models were requiredto serve low-income consumers. Acknowledging thatreaching out to the underserved was a complicatedexercise, Dr Steven L Solnick, India, Nepal and Sri LankaRepresentative of the Ford Foundation said that advocacyshould drive research and pilots, and not vice versa.Col Surajit Rath, Advisor, CSR, Usha Martin Ltd sharedideas on integrated community development throughwatershed management, while Prof Jaswant Bali,NRM expert, Soil Conservation Society of India spokeon bio-industrial watershed management. Dr Dilip NKulkarni, of Jain Irrigation Systems Ltd, and President,Sustainable Agriculture for Small Growers, describedwater sustainability models for small growers.Summing up, Mr Anil Sinha, General Manager, AdvisoryServices, IFC, said the deliberations pointed to theurgency for partnerships to achieve scale and makean impact, the need for accurate data, as also of suchinformation being freely available on the web.Paolo M Martelli, Director, South Asia, IFC; Bharat Wakhlu, Co-Chair CII CSR Sub-Committee (NR) & Resident Director Tata Services Ltd;Anil Sinha, GM, South Asia Advisory Services IFC; Rachel Kyte, Vice President, Advisory Services IFC and Atul Singh58 | November 2009 Communiqué

NationAn 8-member Yi delegation visited Kashmir from 18-21October. The delegates, who were joined by 10 younginfluential leaders of Kashmir, met with Mr. OmarAbdullah, Chief Minister, Jammu & Kashmir and Mr.Haseeb A Draby, Chairman & Chief Executive, J&KBank. This visit to Srinagar and Gulmarg was organisedpost Yi’s participation in the CII Northern Region councilmeeting, held in Srinagar in September 2009. Yi founda need to create a platform in Kashmir for connectingyoung Kashmiri businessmen with businessmen fromother parts of India, for a meaningful dialogue. Yialso felt the need to engage students of schools anduniversities of Kashmir in nation-building, as well as toshare opportunity areas with them.Mr. Omar Abdullah welcomed Yi’s initiatives andrequested Yi to consider opening a chapter in Srinagar.The Yi agenda for Kashmir would be to concentrate onof identifying skill gaps for Kashmiri students and helpdesign programmes and projects to bring the Kashmiriyouth on a common platform with the youth of thecountry. Yi also intends to better integrate the youngbusinessmen and students of Kashmir through adequateknowledge sharing of best practices.Navin Chawla,Chief ElectionCommissionerof IndiaOmar Abdullah, Chief Minister, Jammu & Kashmir, with Yi membersOn 6 October, Yi organized an interactionfor college students and Yi net memberswith Mr. Navin Chawla, Chief ElectionCommissioner of India, in Mumbai. Theinteraction, ‘Youth is the Ambassador for aHealthy Electoral Process’ was organisedto create awareness amongst the youthon the important role that they need toplay in the electoral process of the country. Mr Chawlainvited the students’ questions and views on the electionprocess in the country.Yi, under its Healthcare platform, commemoratedWorld Food Day on 16 October by heightening publicawareness towards the worldfood problem by a feedinginitiative across the country.Yi, all across its chapters,arranged a square meal forpeople in orphanages, oldage homes, and municipalschools, in a small butmeaningful symbolic steptowards eradicating hungerfrom India. The conjoinedeffort of all the Yi chaptersand the associated organisations across India, saw thevision of feeding 10,000 people crossed. In all 10,947people were fed across India.children in KolkataSpreading its reachin Western India,Yi launched its 21stchapter in Goa, witha total of 57 registeredmembers. On 10October, the 22nd Yichapter was launchedin Raipur in centralIndia by Mr BrijmohanAgarwal, Minister forTourism & Culture,Chattisgarh. Yi nowFeeding initiative at the HopeFoundation Nursery & PrimarySchool in ChennaiCommuniqué November 2009 | 59

YiLaunch of the Yi Chapter in Raipurhas 1132 direct members in 15 states.Chapter UpdatesIndoreA Yi Garage Sale was held on 14 October to encouragepeople to reuse and recycle articles, to reduce thecarbon emissions that enter the atmosphere, addingto global warming.On 24 October, 154 people attended an eye check andglaucoma awareness camp was in collaboration withKeshav Hospital at the District Hospital, Indore.DelhiOn 25 October Yi Delhi organised a Health Campat Munirka Basti in association with the DivyashaktiFoundation and Nutrition and Fitness Society. Dewormingcapsules, paracetamol tablets and coughsyrups were distributed to around 200 children of slumdwellers.MumbaiOn 5 October, Yi Mumbai and MCX Mumbai signed twoLaunch of the CII - Yi Corporate chapter at MCX, MumbaiMoUs to initiate a CII – Yi Corporate Chapter at MCX, andto share information relating to agricultural commodityprices with members of the Yi national farmer network,respectively. Dr. Rahul Mirchandani, Yi National Chairmanwelcomed MCX to the vibrant Yi family.HyderabadOn 4 October, students of SSN College, a student netof Yi Hyderabad supported flood relief activity in AndhraPradesh by distributing food and water packets to victimsin the Thotlavaleru and Pamidimukala villages of Krishnadistrict. Net students of Glendale Academy, Hyderabad,also collected Rs.17,800 for the flood victims of Gunturand Krishna districts.partnersoifcOIFC keen to reach Goan DiasporaThe Overseas Indian Facilitation Centre (OIFC),a public private partnership between CII andthe Ministry of Overseas Indian Affairs andConfederation of Indian Industry, participated in aconference on the migration trends and dimensionsof the Goan diaspora. The conference on Migrationtrends and Goa Migration study, 2008, on 9 Octoberin Goa was organized by the NRI commission underthe state government to study the broad conclusionsdrawn by the Goa Migration Study survey conductedin 2008.Mr Eduardo Faleiro, Commissioner for NRI Affairs,presided over the event, while Mr K Mohandas, Secretary,Ministry of Overseas Indian Affairs, was the Guest ofHonour. Ms Shefali Chaturvedi, CEO, OIFC, invited theGoa government to partner OIFC and reach out toGlobal Goans, not only to encourage them to investtheir wealth but also invest their knowledge capital inthe state and become successful cohorts in the state’soverall development. She urged the audience to makeuse of OIFC services and enjoy the benefits of beingconnected with the diaspora.60 | November 2009 Communiqué

AfricaBeninAn 18-member CII business delegation accompaniedDr. Shashi Tharoor, Minister of State for External Affairs,India, on his visit to Cotonou, Benin. The delegation,led by Mr. Kuppuswamy, Director, Shapoorji PallonjiGroup, included representatives of several sectors thatare critical for Africa, such as power, water management,IT training, agricultural equipment, SMEs, constructionand turnkey projects. The delegation participated in theJoint Commission meeting.Addressing the gathering of officials and businessdelegates in French, Dr Tharoor stressed the needfor engagement and a continuing agenda for deeperassociation between the two sides. He identifiedpharmaceuticals and healthcare, IT, and agriculture andagro processing as areas of critical interest to bothsides. He spoke of the need to develop joint venturesfor a long term and sustainable partnership.Mr Jean – Marie Ehouzou, Foreign Minister of Benin,assured Dr Tharoor that all efforts would be made tocreate an enabling environment for business for bothsides. He spoke about the recently signed line ofcredit that has been allocated to projects in railways,agricultural equipment and for a feasibility study for acyber city.The two ministers were also present at the meetingorganised by the Benin Chamber of Commerce, CII’sMoU partners, where the visitors made presentationson their companies.The delegation called on Dr Boni Yayi, President ofRepublic of Benin on 23 October.The visit is an important chapter in the growing economicrelationship between India and Benin. Indian businessdelegates have shown interest to take forward severalopportunities that were cited to them as part of thediscussions.Boni Yayi, President of Benin and Dr Shashi Tharoor, Minister ofBusiness Delegation in Cotonou, BeninAsiaChina‘Why India’ Business SeminarThe Consulate General of India andthe Jiangsu Sub-Council of CCPIT withthe support of the CII India BusinessForum organized a business seminaron ‘Why India’ in Nanjing on 16Mahesh Sachdev, High Commissioner of India to Nigeria,Dr. Shashi Tharoor, Jean – Marie Ehouzou, Foreign Minister of Beninand S Kuppuswamy, Leader of the business delegation & Director,Shapoorji Pallonji, Group CompaniesOctober, to share the successful business experiencesof leading Chinese companies in India with potentialChinese investors looking at investing in India.Ms Riva Ganguly Das, Consul General, ConsulateGeneral of India, Shanghai, highlighted the investmentopportunities available in India and invited the Chinesecompanies to explore these opportunities. Ms. Qiu XiaoCommuniqué November 2009 | 61

eportXia Ming, Vice President, CCPIT Nanjing, Riva Ganguly Das, Consul General, Shanghai,Qiu XiaoPing, Vice Chairperson, CCPIT Jiangsu and J J Shrikhande, Chairman CII-IBF ChinaPing, Vice Chairperson, CCPIT Jiangsu Sub-Counciland many CEOs of leading Chinese companies alsoaddressed the seminar and shared the success stories oftheir businesses in India. Mr. J J Shrikhande, Chairman,CII IBF China, gave an overview of the investmentand business opportunities in various sectors in India.Representatives of more than 70 Chinese companiesfrom the Eastern China regions, senior officials ofregional CCPIT and a 15-member Indian delegationrepresenting Indian companies and banks also attendedthe event.India – China Trade (January -August 2009)Total trade: $26.879 billion, down 29.1%Imports from China: $18.492 billion, down 14.2%Exports to China: $8.387 billion, down 48.7%China’s Surplus: $10.105 billionSource: MOC, PRCIndia, China Climate PactIndia and China on 21 October announced the setting upof a Joint Working Group to exchange views concerninginternational negotiations on global warming.Foreign Trade (January-September 2009)Total Trade: $1557.82 billion, down 20.9%Exports: $846.65 billion, down 21.3%Imports: $711.18 billion, down 20.4%Trade Surplus: $135.47 billion, down 26%EconomyGDP growth (three quarters): 7.7%GDP (3rd quarter): 8.9%Industry (three quarters): Up 8.7% year-on-yearInvestment (three quarters): 15,505.7 billion yuan, a yearon-yeargrowth of 33.4%CPI (first three quarters): Down by 1.1%PPI:6.5% in first three quartersPMI:Up to 54.3% in SeptemberForex:$2.27 trillion (at the end ofSeptember)FDI (three quarters): $63.8 billion, down by 14%Non-Public SectorThe non-public sector in China created60% of the country’s gross GDP atpresent time and created more than 70%of jobs in China’s urban areas.Export Tax Rebate UpChina extended the rebate of $38.73billion to its exporters in the first 8 monthsthis year, an increase of 8.6%. China hasraised export tax rebates seven timessince last August to shore up exports which shranksharply on weakening overseas demand.Steel OutputChina’s steel prices have dropped around 1000 yuan perton from the peak in August. However, most domesticsteel producers say that they won’t reduce output as longas they are still profitable. China’s crude steel output isexpected to cross 500 million tons this year.Automotive OutputSince the beginning of this year, China’s production ofautomobiles hit 10 million units on 20 October, makingit the third country in the world to surpass the annualoutput mark. China’s auto output is expected to surpass12 million units in 2009.Production Over-capacityThe National Development and Reform Commission willmainly redress production over-capacity in six sectors,which include steel, cement, plate glass, coal-chemicalindustry, poly-crystalline silicon and wind power equipment.The Commission has also warned about productionover-capacity in sectors like electrolytic aluminum, shipmanufacturing and soybean oil extraction.Textile, Garment Exports SufferChina’s textile and garments exports are expectedto slide by over 10% this year, the fastest drop in 30years. China’s textiles and garment exports in the firstnine months of 2009 amounted to $121.64 billion, down11.17% year-on-year.China-ASEAN TradeThe implementation of the China-ASEAN Free TradeArea from January 2010 would bring 90% of tradeproducts under zero tariff target and substantially openthe service trade market.GEM Starts TradingTwenty-eight small and medium-sized enterprises on30 October started trading their shares at China’sNasdaq-style market, Growth Enterprise Market (GEM),ChiNext, in Shenzhen, Guangdong Province. ChiNext62 | November 2009 Communiqué

eportis expected to provide more fund-raising channels forhigh technology and high growth SMEs.JapanBudget Re-AllocationPrime Minister Yukio Hatoyama’s Cabinet on 16 Octoberfroze 2.9259 trillion yen in programmes listed in thesupplementary budget for fiscal 2009 passed by theprevious administration. The money saved from thecancelled programmes will be redistributed to pay fornew policies, such as the child allowance programme,promised by the Democratic Party of Japan in its electioncampaign manifesto.India Driving Suzuki’s GrowthJapanese car major Suzuki is reaping the benefits ofits dominant position in India, its biggest market. Salesnumbers for the first half of 2009-10 show that the company,despite witnessing slump in almost every other marketincluding home turf Japan, still hopes to remain in thepink of health with India offsetting all the global declines. InEurope numbers fell 50%, in North America, they dropped60% and in Japan 13%. India saw first half sales movingup by 24% over the corresponding period of the previousyear. Suzuki’s holds over 50% market share in India.Economy View UpgradedThe Finance Ministry upgraded its overall assessment ofthe Japanese economy for the second straight quarter,citing a further rise in manufacturing production. Theministry said the economy nationwide remains in adifficult situation, but showed some signs of picking up,such as an increase in production activity.Relative Poverty RateJapan’s relative poverty rate stood at 15.7% as of 2007,South East AsiaAsean Association of Southeast Asian Nations (ASEAN) officialson liberalising markets in services and investments tocomplement their Trade-in-Goods (TIG) Agreementkicked off on 12 October. India intends to secure mutualrecognition agreements (MRAs) with ASEAN countriesfor recognising its qualifications in areas like medicine,nursing, architecture, accounting and teaching, as wellas seek more opportunities for its financial servicessector.AustraliaThe Reserve Bank of Australia delivered a second interestrepresenting a deterioration from the 14.9% recordedin a 2004 survey.100,000 Jobs to be CreatedJapan on 23 October unveiled an emergency programmeto create 100,000 jobs by March next year.Core CPI FallsJapan’s consumer price index fell 2.2% in August, whilecore consumer prices (excluding fresh food) tumbleda record 2.4%.Foreign Reserves Hit Record HighJapan’s foreign exchange reserves reached a recordhigh of $1,052.60 billion in September, up by $10.26billion from a month earlier.South KoreaBank Lending RatesSouth Korean banks’ lending rates climbed to an eightmonthhigh in September amid growing hopes of aneconomic recovery. The average interest rate on newloans to households and companies stood at 5.82% inSeptember, up 0.21 percentage point from the previousmonth, the Bank of Korea said.Economy GrowsSouth’s economy has expanded for a third straightquarter amid gains in manufacturing and capitalspending. According to the Bank of Korea, GDP grew2.9% in Q3 compared with 2.6% in Q2.Exports GainSouth Korea’s exports gained 5.1% in the third quarterfrom the previous three months, when they rose 14.7%.Corporate investment in factories and equipment climbed8.9%, compared with 10.1% in Q2.rate rise in an attempt to moderate economic recovery.The increase was widely expected by financial marketsand economists, especially after house prices rose by4.2 per cent in the September quarter.Inflation in Australia has also remained relatively highcompared to the rest of the world. The underlying rateof inflation was 3.5 per cent in Q3, still well outside ofthe central bank’s 2-3 per cent target range.With the risk of serious economic contraction in Australianow having passed, the RBA feels that it is prudent tolessen gradually the degree of monetary stimulus thatwas put in place when the outlook appeared to bemuch weaker.Communiqué November 2009 | 63

eportBrunei signed an agreement with Brunei’s technology-enabledsolutions and services provider, Alif Technologies, topromote the latter’s products, like its Geo Despatcher - anintelligent mapping system that automatically dispatchesresources to any given site - globally. been launched in the sultanate to provide a platform forcollaboration and facilitation of trade and commercialnetworking between the business communities of bothcountries and peoples, as well as in the fields of culture,education and tourism.Cambodia Exchange Commission of Cambodia (SECC), has passedan edict setting minimum capital requirements for firmswishing to underwrite offerings.Indonesia for the second month in October in a bid to spur lendingfurther. The CPI climbed 2.83% y-o-y in September, afterrising 2.75% in August. Month-on-month, Septembersaw the biggest price advance in 14 months. BankIndonesia predicts inflation may accelerate to between4% - 6% in 2010 in anticipation of higher crude oil andenergy prices, as well as economic activity. Analysts areexpecting consumer prices to gain 6.7% in 2010. through new laws on compulsory land acquisitions tohelp speed up infrastructure development in order tomeet its economic growth targets, according to Mr RadenPardede, Senior Advisor to the Finance Minister. seriously promote Indonesian tourism in India andtargets 180,000 tourists from the country in 2010, i.e.about 2.6% of the 7 million foreign visitors it hopes towelcome next year. to 40% for completely built-up (CBU) cars and 10% forcompletely knocked-down (CKD) cars. The new tariffs willapply to cars imported from all countries except those thathave an FTA with Indonesia, and fellow ASEAN nationsfor which duties on CBU cars will remain at 5%. regional administrations to set new vehicle tax rates ona progressive basis where car owners pay more tax foreach additional private motor vehicle owned, in a bidto ease the overwhelming street congestion in majorcities like Jakarta. Car sales in the January-July periodof this year were down 28.7% from the correspondingperiod of 2008. coal at 150 million tonnes per annum to ensure domesticdemand is met, particularly for electricity generation. TheIndonesian Coal Producers Association estimates nationalcoal production will reach 250 million tonnes this year whiledomestic demand is expected to hit 50 million tonnes. said the country’s mining sector could expect investmentsof up to $6 billion in 2010-2012. period, Last year,investment reached about $1.35 billion, 2.5% more thanthe $1.25 billion booked a year earlier. seeking inputs from industry players on a ruling tointroduce stricter regulation, verification, transparencyand accountability regarding investors from financialfirms and custodian banks. (Kadin) has asked the government to offer incentives toinvestors willing to look at Papua in order to accelerategrowth in the region. Papua is potentially rich in mineralresources, with vast expanses of land suitable for oilpalm, cotton, rubber and food crops, but has poorinfrastructure. petrochemical industry needs additional investmentsof $22.6 billion in the upstream sector in the next 5years to support downstream activities (eg. plasticsmanufacturing) and augment the industry’s growth fromthe present 6%-7% to more than 10%. is exploring oil in Timor Leste. assets overseas in China and Indonesia. buyout in Indonesia to capitalize on the rising tradeand investments between India and the SoutheastAsian country. The deal size is expected to be over$100 million, and SBI has reportedly short-listed 3 to 4Indonesian banks. and Vietnam, and is likely to open a representative officein Malaysia by March 2010.Malaysia 64 | November 2009 Communiqué

eportto -5.7% y-o-y, following a 8.1% decline in July.Manufacturing output fell 6.6% in August and overallindustrial production contracted 11.2% in the first 8months of the year. by the year end, and expects the $195 billion economyto probably shrink less than the government’s forecastof 5% contraction this year. Budget 2010 would seek to move the country to a highincomeeconomy by strengthening the private sector,intensifying R&D activities and promoting innovationand creativity. “Barriers to investment including policies,rules, regulations and procedures will be reviewed,” itsaid, as the government creates more opportunities forthe private sector. which comes into effect on 1 January 2010, ends a3-year ban on production permits. Foreign companieswill be allowed to hold 100% of companies producingluxury vehicles with engine capacity of more than1.8 litres, and costing more than $44,000. An importpermit system for vehicles will be scrapped in 2015,while fiscal incentives and exemptions to the local autoparts and components manufacturing industry will beincreased. facilities in Malaysia’s Klang Valley, has expressed keennessto set up a $15 million biotech facility in Penang. head a trade delegation to India early next year. Penangis keen to pursue with India the setting up educationalcolleges in languages, engineering and tourism. build small passenger cars for the Indian market, mostlikely involving the Saga platform. recently acquired a 2.3% stake in UK-headquarteredCairn India for $240 million.Myanmar Commerce & Industry has received approval from itsgovernment to open liaison offices in China and India. least $1.5 million on feasibility studies for two potentialhydroelectric dams in western Burma. The NationalHydroelectric Power Corporation (NHPC) will conduct testsat Tamanti on the River Chindwin, the largest tributary of theIrrawaddy, and Myanmar’s key commercial waterway. by the India Maritime Company. The development of theport, with funding assistance from the Indian governmentamounting to $120 million is part of the Kaladan Multi-ModalTransportation Project, that involves making the KaladanRiver navigable up to the Indian state of Mizoram. standard of its video and movie production industry toenter foreign markets, will take part in an internationalfilm festival in Mumbai in February 2010 to introducethe country’s documentary, short and animation films. prohibited, can now legally provide health care serviceswith government licenses. government spends 849 kyat ($ 0.80 cents) per citizenannually. The ratio of hospital beds to population is62 beds per 100,000, which the government hopes toimprove to 75 beds per 100,000 people in 2010.New Zealand has quickened as domestic activity picks up after thelongest recession in more than 30 years, according tothe New Zealand Treasury Department sales, retail sales, migration gains and building consents,all point to stronger demand and consumption. TheTreasury is expecting the economy to grow at an annualrate of around 2 percent over the second half of 2009,and said the global growth outlook also looked better.However, it said the strength of the NZ dollar, which hasgained around 45 percent since a six-year low touchedin March, was undermining the extent to which exportswould boost recovery.Philippines quickening may narrow the scope for maintaining interestrates at a record low of 4%. Annual inflation settled at 0.7%in September, after a 22-year low of 0.1% in August. weak sales of electronic products. Exports have beendeclining for 11 straight months, though the decline inAugust was the slowest since June. among 17 Asia Pacific countries in EIU’s most recent ITcompetitiveness index. Its rankings fell to 56th place from47th position in 2008 among 66 countries worldwide.Communiqué November 2009 | 65

eportChina and India moved up to 44th and 39th positionfrom 50th and 48th in 2008 respectively. Management Corporation, a state entity, plans toprivatise up to 6 power plants in 2010, starting with the246-MW Angat power plant that is likely to go up forsale in February next year. The agency will look intothe sale of 7 more plants from 2011 to 2013.Singapore 0.8% y-o-y in Q3 2009, compared to a contraction of3.2% in Q2 2009. climbed an annualised 14.9%, while the manufacturingsector grew 35% in Q3. The services producing industriesexpanded by 9.5% in Q3 compared to an 8.3% increasein Q2. 0.3% in August as a stronger currency reduced costs ofimports, housing, transport and communications. Foodprices, however, which make up 23% of the index, rose0.8% in September from a year earlier. Economistsanticipate the return of inflation as early as Q1 2010albeit at benign levels. 4.6% in September, after a 0.8% rise in August. containers in September than in August, a downturnafter 2 months of raised activity, while traffic was 16%lower than a year earlier, reported the Maritime and PortAuthority of Singapore. for Singapore, saying its GDP will expand by 4.3% in2010 after a 1.7% contraction the current year. It hadpreviously predicted 4.1% growth in 2010 after shrinking3.3% this year. 10th to 4th position on the World Economic Forum’sFinancial Development Report 2009 Index. bio-med testing standard has been accepted bythe Organisation for Economic Co-operation andDevelopment’s (OECD) Mutual Acceptance of Dataframework (MAD). The approval gives Good LaboratoryPractice (GLP) certified labs in Singapore access towider markets and opportunities. Singapore to implement the internationally-agreedstandard for the exchange of information (EOI) for taxpurposes on request. The new standard enhances thescope of information exchange cooperation under theAvoidance of Double Taxation Agreements (DTAs). spending on renovation and refurbishment incurredbetween 2008 – 2013, while new companies can enjoytax exemption of up to $143,056 for the first 3 years ofoperations - doubling the previous amount, with Zurich-based Swiss Federal Institute of Technology(ETH) to set up the Singapore-ETH Centre (SEC) forGlobal Environmental Sustainability which will focus ondeveloping green-building technology, urban design andcity planning. Prime Minister Lee Hsien Loong have agreed that theComprehensive Economic Agreement (CECA) betweenIndia and Singapore should undergo a second review,to further enhance the already very good ties betweenthe two nations. The leaders had a bilateral meeting onthe sidelines of the 4th East Asia Summit in Thailand. the Singapore Mercantile Exchange (SMX) by year end.The new exchangewill offer an electronic trading platformfor futures and options trading on a diversified rangeof commodities. & Industry, Singapore, said the country plans toprovide financing and development services for carbondioxide reduction projects through a $500 million cleantechnology fund. of Singapore Investment Corporation have cut theirstakes in ICICI Bank, India’s biggest lender. India’s most attractive destination for investments overthe last four years and is also the second largest sourceof foreign direct investments (FDI) into India. Growthin FDI from the island republic into India catapulted1,077% between 2005-06 and 2008-09, compared withthe 271% growth in investments from Mauritius over thesame period, although the latter continues to lead interms of total investments into the subcontinent between2000 and 2009. stop flights between Singapore and Mumbai. In 2008,there were 2.5 million passenger movements betweenIndia and Singapore.66 | November 2009 Communiqué

eportThailand straight in August. Manufacturing output dropped10.3% y-o-y. Economists expressed doubts about theawaited economic recovery in Q4 2009 as the revivalin exports was neither broad-based nor sustained amidmixed signals by global indicators. The finance ministryexpects the country’s recession to ease this Q3 2009and economic growth to resume in Q4. the country’s economy, contracted 17.9% in August,from a 25.7% plunge in July. Imports fell 33.8%, resultingin a trade surplus of $2.27 billion in August from $799million in July. for Thailand’s credit rating, citing political instability.“Domestic demand is expected to be subdued andinvestment sentiment to be further suppressed, addingmore downside risk to growth,” it said. more of projects, raising the total investments plannedover 3 years to boost economic growth to $38.9billion. expanding the India-Thailand Free Trade Agreement(IT-FTA) into a comprehensive agreement that willencompass services and investments. Thai DeputyPrime Minister Korbak Sabhavasu, at an India-ThaiBusiness Forum in New Delhi, said the counties would‘supplement each other in enlarging market size andbusiness opportunities’ that could take bilateral tradeto $10 billion in 2011 from $6 billion. Estate PCL, expects to rake in up to Rs 3 billion inrevenue from home sales in India next year. Besidesits $32.9 million housing project in Bangalore, projectsare also planned in New Delhi and Mumbai. opening 10 hotel and resort properties across India byend 2012. It is reportedly in talks with local developersin Kerala and Goa for 6 properties already.Vietnam government’s growth target of at least 5% this year.GDP expanded 5.8% y-o-y in Q3 2009, up from 4.5%in the previous quarter. Industry and construction, whichaccount for 40% of the Vietnamese economy, grew 4.5%in the first 9 months. Services, which make up 38% ofGDP, grew 5.9% in the first three quarters. import tax rate on automobiles to 91%, up from 83%currently, to control the country’s trade deficit, which hasjumped due to rising car imports and stagnant levelsof exports. invest an additional $149.5 million in its oil block inVietnam. ONGC Videsh, which has a 45% participatinginterest in the block, jointly with Petro Vietnam and BP,will make the investment from the project’s revenueproceeds. and 4th political consultative meeting in New Delhion 15 October. The meetings were co-chaired byVietnamese Deputy Foreign Minister Dao Viet Trungand his Indian counterpart, N Ravi. They reviewedbilateral relations since the two countries establishedstrategic partnership in July 2007. The ministersagreed to increase the exchange of delegations infuture and to convene the 14th Vietnam-India jointcommittee in Vietnam soon. They shared the viewthat both countries should work closer together tospeed up ASEAN-India cooperation, especially whenVietnam takes over the ASEAN Chairmanship in 2010.They agreed to organise the second strategic dialogueand the fifth political consultative meeting in Vietnamin 2010. 40% of its GDP this year, up from 36.5% in 2007, andwill continue to surge to 44% in 2010, according tothe National Assembly Finance and Budget Committee.The Committee warned that national debt wouldreach an unsafe level if the government did not takenecessary measures to tackle the growing budgetdeficit. Anand Sharma, and Vietnamese Minister of Industryand Trade, Mr. Vu Huy Hoang, signed a MoU on 25October, recognizing each other as equal WTO tradingpartners. Under the MoU, India also recognises Vietnamas a full market economy and grants it ‘Market EconomyStatus.’Events12 October, Kauala Lumpur: Launch of ‘Doing Businessin Malaysia: Handbook for Indian Business’ a specialguidebook on trade and investment opportunities inMalaysia by former Prime Minister Tun Abdullah AhmadBadawiCommuniqué November 2009 | 67

eportMohamed Faizal, Asst Director Investment Promotion Division(Asia Oceania), MIDA; Umang Sharma, Chairman, Consortium ofIndian of Indian Industries in Malaysia; Tun Abdullah Badawi,Former Prime Minister of Malaysia; and Ashok Kantha,High Commissioner of India to Malaysia29 October, Singapore: Lecture by Prof Anil Gupta on’Getting India and China Right’ supported by CII-IBFSingapore30 October, Bangalore: Roundtable meeting withDato’ Mustapa Mohamed, Minister of InternationalEuropeCyprusMs Pratibha Patil, President of India, visited Cyprus on30 October on the second leg of her state visit to UKand Cyprus. A CII delegation which accompanied thePresident, participated in the business events organisedduring President’s visit. Mr S R Sharma, Member CII-IBF-UK and Managing Director, Punjab National Bank(International), UK, the Co-leader of the delegation,made a presentation on ‘Doing Business with India.’ Thebusiness community in Nicosia expressed keen interestto visit India to explore business opportunities.FranceEconomyClose on the heels of €2bn pledged to fund the growthof SMEs, to bolster support among rural voters ahead ofregional elections in 2010, President Sarkozy announceda €1.65bn package to help farmers cope with lowercommodity prices. This immediately raised queries fromthe EC! Despite such measures having some impact asreflected in increased business confidence, the tradedeficit for August was €3.41bn, partly due to a strongEuro, and the jobless rate was also up. But the Unions’call for another day of street demonstrations for ‘decentwork’ fell flat, reflecting anxiety on the workers’ part tosave their jobs in these difficult times.Business & IndustryAfter 25 workers’ suicides, France Telecom set up €1bnfund to study causes of and deal with stress at work.Dato’ Mustapa Mohamed, Minister of International Trade & Industry,Malaysia launching the Handbook on ’Doing Business in Malaysia’ inBangaloreTrade and Industry, Malaysia, and the accompanyingbusiness delegation. The guidebook ‘Doing Business inMalaysia: Handbook for Indian Business’was launchedin Bangalore on the occasion.Reflecting banking sector exuberance, Credit Agricolepaid back a € 3.2bn govt emergency loan after SociétéGénérale, which also announced plans to raise €4.8bnin the market. This evoked a warning from the CentralBank Governor Noyer against banks reverting to thebad old days!Danone settled a longstanding dispute with its Chinesepartner and Carrefour announced its withdrawal fromRussia just 4 months after entering that market.IndiaMs Anne-Marie Idrac, Foreign Trade Minister, France,led a government-business Agro food sector delegationto India. CII organised several of the related events inDelhi and elsewhere.Alstom and Thales won a € 57mn contract for signalsystems for the Bangalore Metro.Increasing its Indian exposure, the financial institutionProparco, having earlier invested €100mn in PetronetLNG, signed agreements to invest €20mn in YES Bankand lend €20mn to Seri Infrastructure.GermanyPoliticsOnly a concession regarding the demand of the juniorcoalition partner FDP for a substantial income tax cut(€ 35bn over the next four years) could break thedeadlock in forming the new government. CDU/CSU hasnow agreed to cut income tax by € 24bn. This concessionwas obviously also the reason that seven members of68 | November 2009 Communiqué

eportthe coalition did not vote for Ms. Merkel at the electionof the Parliament to appoint the new Chancellor. Howevershe still got a majority of 11 votes.Despite the unresolved issue of how to finance this taxcut, the new government has been formed with fiveministers in the 16-strong government from the FDP,making it one of the most powerful junior coalitionpartners in recent German history.Mr. Schäuble as Finance Minister was definitely a surpriseappointment and reflects Chancellor Merkel’s desire tohave a political heavy-weight for this position as Germanyseeks to exit the worst recession since 1930.EconomySix months ago it was forecast that German economywould shrink 6 % this year with a small growth of 0.5 %next year. The revised numbers are a 5 % decline thisyear and a growth of 1.2 % next year. However, dueto a double-digit contraction in exports, there is goodreason to be cautious.Additionally some of the government programmes thatsoftened thedownturn are ending: The € 5bn scrappingscheme which produced a 26 % increase in carsalesand also the end, partly, of the short-term workingsubsidies that have helped restrain unemployment. Atpresent, there are still 1.1m persons employed by theshort-time working scheme, with 95,000 new applicationsfor short-time working.BusinessesBanksThe new German government will appoint Bundesbank(the German central bank) as the sole regulator for banks,abolishing Germany’s two-headed bank supervisorysystem. Bundesbank will not only supervise banks butalso oversee insurance companies.Deutsche Bank is to buy Sal Oppenheim, one ofEurope’s best known independent privately-ownedbanks, for € 1bn. The deal will end the independenceof the 220-year- old Cologne-based bank, which madesome poor investments last year. Deutsche Bank willbecome the market leader in banking in Germany forrich clients and family assets.AutomotiveGM is re-examining its option for Opel after the EU haswarned that the proposed sale to Magna Internationaland Sberbank might breach state aid rules. EU claimsthat Germany’s financial aid for the spin-off appeared tobe conditional on Magna and Sberbank winning control,and thus could violate antitrust rules.The VW Group’s share of the global passenger car marketrose to 11.7 % compared to 10 % a year ago, thoughpre-tax profit fell from € 5.3bn to € 1.1bn in the first threequarters. The group is performing well despite the adverseconditions and in comparison to the competitors.Other IndustriesTurnover and production of the German electrical andelectronic industry shrank 26 % in August , higher than inJuly. Even worse is the situation in the German machineryindustry where sales shrank in August by 31.7 %.BASF reported a decline of revenues of -19 % at theend of the 3rd quarter and EBIT shrank by– 36 %.SAP, the world’s largest business software provider, cutits full-year outlook after missing expectations for thethird quarter, and expects revenues to drop 6-8 % incomparison to last year’s performance.Mergers & Acquisitions: Gateway to EuropeTandeep Minhas, Corporate Partner, S J Berwin,Manish K Sharma, Partner, Fox Mandal, Laura O’Neill, CorporatePartner, S J Berwin, and Vijay Mathur, CMD, Inapex Pvt LtdThe economic slowdown has led to the deferment ofoverseas acquisitions plans for many Indian companies.However, for companies that are strong strategically andfinancially, the recession presents rare opportunities toimprove competitive positioning and strengthen the corebusiness through acquisitions and partnerships.For companies with resources and the will to undertakedeals, there are three necessary ingredients forsuccess: an investment thesis tailored to a company’sstrategic priority, the target list, and a well-preparedteam ready to act quickly. With this background, CII,in partnership with European law firm SJ Berwin andIndian law firm FoxMandal Little organised a roundtablesession exclusively on understanding Mergers &Acquisitions, especially in the European context.The session, held on 6 October in New Delhi wasaddressed by senior partners of the law firms,who provided detailed information and knowledgeto participating Indian corporates on acquisitionstructure, preliminary agreements, EU merger control,employment issues, pensions issues and acquiringdistressed assets.Communiqué November 2009 | 69

eportMiddle East & the GulfIranA 10-member CII businessdelegation, led by Mr VijayR Kiloskar, Chairman andManaging Director, KirloskarElectric Company Ltd visited Iranfrom 6-9 October. The visit wasorganized to encourage businessof both countries to engage moreclosely and find ways to enhancebilateral economic, trade andinvestment cooperation. Thedelegation’s visit also coincidedwith the Teheran InternationalFair, which the members visited during their trip.CII Delegates with Sanjay Singh The Ambassador of India to TeheranBesides interacting with various Iranian companies atthe Teheran Fair, the delegation members met withthe Iran Chamber of Commerce, Industries and Mines,the Organisation for Investment, Economic & TechnicalAssistance of Iran (OITETAI), Chairman of the Boardof Industrial Development & Renovation Organisation(IDRO), Ministry of Electricity, Department of Customs,Department of Foreign Trade, Ministry of Commerce, IranSmall Industries and Industrial Parks Organisation (ISIPO)and many others. The delegation also had one-on-onemeetings with Iranian counterparts.The CII delegation included representatives from MungiBrothers, Dynamic Logistics, Wendt India Limited, EssarSteel Ltd, Thermax Limited and Kohinoor Foods Ltd.Saudi ArabiaCII members with Pranab Mukherjee, Finance Minister, India, and, the Commerce & Industry Minister,Saudi ArabiaAt the invitation of the Government of India, CII organizeda business delegation to the Kingdom of Saudi Arabiacoinciding with the 8th session of the India-SaudiArabia Joint Commission Meeting held in Riyadh, from31 October to 1 November.The official delegation was headed by Mr PranabMukherjee, Finance Minister of India, and the CIIbusiness delegation was led by Mr S S Nandurdikar,Managing Director, Paradeep Phosphates Ltd andSimon India Ltd. Mr Jagjiv Kumar Arora, President,All India Induction Furnaces Association and ViceChairman & Managing Director, Supreme Group, wasthe co-leader of the CII delegation. In Riyadh, thedelegation had fruitful meetings on bilateral tradewith members of the Council of Saudi Chambersof Commerce & Industry. The delegation also metrepresentatives of SAGIA (Saudi Arabian GeneralInvestment Authority.)In Dammam, the delegates met with the AsharqiaChamber of Commerce and had one-to-one interactionswith businessmen from the Eastern Province.CII delegation with members of the Ashraqia Chamber of Commercein Dammam70 | November 2009 Communiqué

eportLatin America & the CaribbeanPhiroz Adi Vandrevala, Executive Director & Head, Global Corporate Affairs, Tata Consultancy Services; Lino Baranao, Minister for Science &Technology, Argentina; Jorge Taiana Minister of Foreign Affairs, International Trade & Worship, Argentina; M M Pallam Raju, Minister of Statefor Defence, India; and Cristina Fernández de Kirchner, President of The Argentine RepublicArgentinaArgentina’s trade engagement with India is poised fora big leap with the two countries looking to more thandouble their bilateral trade in the next three years.Addressing a Seminar on ‘Argentina-India: Trade,Investment and Business Opportunities’, organised bythe Embassy of Argentina in association with CII, andother organisations, the visiting President of Argentina,Dr Cristina Fernandez de Kirchner, said that the twocountries had set a trade target of US$ 3 billion by2012 from US$ 1.3 billion in 2008.President Kirchner invited Indian companies to investin Argentina. She spoke of the new paradigm ofstability and growth of the economy, availability ofrich natural sources and creative human resourcesin Argentina. She pointed out that the two keyareas of cooperation betweenIndia and Argentina were foodand energy. Argentina couldcontribute to India’s food andenergy security with its surplusin food and energy.Dr M M Pallam Raju, India’sMinister of State for Defence,welcomed the visit of PresidentKirchner, accompanied by ahigh level delegation, duringthe 60th anniversary of theestablishment of diplomaticrelations between India andArgentina, and after a gap of 15 years. Noting thatIndia and Argentina have MoUs or agreements in thefields of Agricultural Research, Antarctic Cooperationand Technical and Scientific Cooperation, as well asMoU exchange between Shubhendu Amitabh, Co-Chairman,CII LAC Committee & Senior President, The Aditya BirlaGroup, for CII, and Ignacio de Mendiguren, Co-Chairman ofThe Argentine Industrial Union (UIA), for UIAthe Bilateral Investment Promotion Agreement (BIPA),the Minister said discussions in the areas of defence,industrial research, hydrocarbons, space and civilnuclear energy were taking bilateral relations betweenthe two countries into a higher trajectory. While Indiancompanies had already invested around US$ 119 millionin Argentina and employed around 1,300 Argentinenationals, a few Argentine companies had also setup operations in India in the engineering and pharmasectors, he said. However, Mr Raju pointed out thatIndian pharmaceutical companies faced considerabledifficulty in exporting finished formulations to Argentina,though “Argentine pharma companies import most oftheir raw materials from India.”Indian industry expects the India-Mercosur PreferentialTrade Agreement, which came into effect from 1June 2009, to further boost trade between India andArgentina as well as improvemarket access between Indiaand Mercosur.Business to Business meetingswere organised on 13 Octoberwith the 50 member Presidentialdelegation, in collaborationwith the Embassy of Argentinain India for a number ofsectors.A 34 point Joint Statement byIndia and Argentina on theoccasion of President’s visitincludes three main bilateral aspects: developing acomprehensive dialogue towards a strategic partnership,bilateral relations-trade and investment and theinternational system and multilateralism.Communiqué November 2009 | 71

eportSAARCMaldivesContinuing its endeavorto further strengthen India– Maldives trade andeconomic cooperation andto review its developmentalagenda, CII organised aninteractive session withMr. Mohamed Nasheed,President of Maldives, on24 October in New Delhi.In his welcome address, Amb. Kuldip Sahdev, Chairman,CII Maldives Committee said that some leading Indiancompanies have already shown interest in Maldives.The Ambassador said he was regularly monitoringdevelopment in cooperation with Maldivian enterprisesafter the visit of the CEOs mission of CII to Maldivesin February this year.MohamedNasheed,President ofMaldivesMr. Ahmed Nasheed, President of Maldivessaid that most of the development activitiesare taking place in the northern part ofMaldives, and invited Indian companies tolook at the southern part of the countryfor opportunities in housing, airports,ports, power, renewable energy, resortsand software technology parks.Mr. D M Mulay, High Commissioner of India to Maldives,pointed out that contrary to the perception that Maldivesis a small country, its land area is bigger than Sri Lankaand its per capita income is the highest in South Asia.Indian doctors and teachers are well respected inMaldives, he said, urging Indian companies to havea long-term vision for economic cooperation withMaldives.Mr. Tarun Das, Chief Mentor, CII, who chaired the meeting,assured CII’s full support for stronger partnership ineducation, healthcare, IT, training, housing, energyand power.The team from Maldives included Mr. Ibrahim HussainZaki, Special Envoy of the President, senior ministers,MPs and senior government officials.NepalA seven member CII CEOs delegation accompaniedMr Anand Sharma, Minister of Commerce and Industry,India, to Nepal. Mr Anand Sharma signed the revisedTreaty of Trade between India and Nepal to controlunauthorized trade on 27 October in Kathmandu.Addressing the CII CEOs delegation and leading IndianAnand Sharma, Minister of Commerce and Industry, India, addressing the CII CEOs delegation andIndian JVs in KathmanduJVs in Nepal, Mr Sharma said that India is not only amajor trading partner of Nepal but shares a very warmand very special relationship with the country. Stressingthat the role of India and CII is very important for thedevelopment of the Nepalese economy, Mr Sharmasuggested that CII and the Government of India couldwork together in setting up a skills development andtraining centre in Nepal.The CII delegation also participated in the signingceremony of the treaty of trade and the agreement ofcooperation to control unauthorized trade, signed byMr Anand Sharma and Mr Rajendra Mahato, Ministerof Commerce and Supplies, Nepal.The new treaty will have a seven-year validity instead ofthe earlier five years and will be extended automaticallyevery seven years.The Duty Refund Procedure has been scrapped toprovide Nepal direct control on the customs dutyrevenues on import of manufactured goods from India.Besides the Calcutta Port, Nepal can now also availof the Vishakhapatnam port while four additional landcustoms stations will be established to facilitate bilateraltrade. Also, for the first time, bilateral trade will beallowed by air through international airports connectedby direct flights between Nepal and India (Kathmandu/Delhi, Mumbai, Kolkata and Chennai).India has also agreed to allow Nepal access to theBanglabandh port through Indian territory, allow itemslike rice, wheat and sugar to be sent to Nepal at a timethey are not allowed to be exported to other countriesand will authorize the export of about 50,000 tonnesof fertilizer.The CII delegation also met Dr Prakash S Mahat, Ministerof Energy, Nepal, and the Federation of NepaleseChambers of Commerce and Industry (FNCCI). Themeeting was chaired by its President, Mr Kush KumarJoshi.72 | November 2009 Communiqué

eportUnited KingdomThe President of India, Mrs Pratibha Devisingh Patil, madea state visit to UK from 26-29 October, accompaniedby a senior business delegation. The CII delegationaccompanying the President was led by Mr AjayShriram, Chairman, CII Business@CommonwealthGames Committee, and Chairman and Senior ManagingDirector, DCM Shriram Consolidated Ltd. Senior industrymembers, including Mr J P Chowdhary Past President,CII, and Chairman, Titagarh Wagons Ltd.; Mr Ravi Kant,Vice Chairman, Tata Motors Ltd; Mr Baba Kalyani,Chairman & Managing Director, Bharat Forge Ltd.; andMr Phiroz Vandrevala, Executive Director & Head GlobalCorporate Affairs, Tata Consultancy Services, wereamong the delegates.On the sidelines of the Presidential Visit, on 28 October,the CII delegation interacted with the members of theCII-IBF-UK to discuss ’2010: Where are we headed?’ Thediscussions centered around the financial revival andopportunities for Indian companies in the UK and Europe.It was felt that the time is right for Indian companiesto acquire business in the UK and Europe, and, at thesame time, it is necessary to spur the interest of UKcompanies to invest in India’s infrastructure growth. Themembers also explored new ideas on promoting andmarketing various investment projects in India, pointingto the need to build awareness of the opportunities aswell as the funds available for such projects, as wellincrease understanding of Indian culture and its influenceon ’Doing Business with India. The IBF membersdiscussed the scope of increasing cultural awarenesswith the help of its membership base from the mediaand entertainment industry.More than 30 leading Indian companies based in the UKare members of the IBF-UK. The IBF-UK is a Forum jointlyset up by CII in cooperation with the High Commissionof India. It is a group of CII member companies basedin the UK, with the High Commissioner as Mentor.On 29 October, the CII delegation accompanying thePresident of India, participated in the Annual Conferenceof the UKIBC at the Lancaster House, London where MsPratibha Patil addressed select members of the businesscommunity of UK.Later, the delegation participated in the ’Passing theBaton Ceremony’ at Buckingham Palace.The delegation members also participated in thebusiness sessions at the UKIBC Annual Conference.Mr Ajay Shriram and Mr Phiroz Vandrevala sharedtheir experiences of the growth of their companies ata session on ’Insight- A View From the Top.’ Mr RaviKant and Mr J P Chowdhary spoke on ‘InternationalMarket Entry Strategies, what worked and what didn’t’and ’Innovate- Next Generation India,’ respectively.CII members also participated in the various publicengagements of thePresident of Indiaincluding the receptionsand dinners hostedby Mr Nalin Surie,High Commissioner ofIndia to UK, and theState Dinner hostedby the Lord Mayor ofLondon.At the CII-IBF-UK meet on ’2010: Where are we headed?’United States of AmericaSession with Amb Timothy J. Roemer8 October: New DelhiCII had the honour of organising the first publicsession of Ambassador Roemer with members of IndianIndustry, since he assumed diplomatic office in India.Amb Roemer, a six time Congressman, shared thatIndia US trade, despite having doubled in the last fiveyears, still has the potential to increase manifold. Indiaand the US held a successful first round of negotiationsover the Bilateral Investment Treaty (BIT). Outlining 5strategic avenues between the Indian and Americanbusiness community, he urged greater cooperationin energy, power and electrical grid; food securityand agricultural cooperation; rural development andpoverty eradication; defence and security; and greatercommitment to working together at the India-US CEOsForum.Communiqué November 2009 | 73

eportChandrajit Banerjee, Director General, CII; Hari Bhartia,Vice President, CII, and Co-chairman & Managing Director, JubilantOrganosys; Amb Roemer and Tarun Das, Chief Mentor, CIIAmb Roemer emphasized on infrastructure as a majorpotential area for American companies to explore forinvestments in India. He also called for addressingeducation and rural development issues throughcollaboration.Meetings with Anand SharmaTarun Das, Chief Mentor, CII; Sec. William S. Cohen, Chairman andCEO, The Cohen Group; Amb. Carla Hills, Chair and CEO, Hills &Company, International Consultants; Anand Sharma, Minister forCommerce and Industry, India, and Meera Shankar,Ambasssador of India to the USAA meeting with Mr Anand Sharma, Minister of Commerceand Industry, India, was organized by CII in WashingtonDC on 13 October, and in conjunction with USIBC on15 October in New York.Addressing members of Indian industry in USA andalso American businesses in Washington DC, MrSharma assured India’s commitment to enhancingbilateral economic cooperation and multilateral tradenegotiations. The services industry has grown hugelyover the past several years. India has played a leadingrole in Doha and NAMA, he said. Mr Sharma alsospoke of negotiating the Bilateral Investment Treaty,increasing IPR protection, broadening the offset policyin the defence sector, fruition of the US India nuclearagreement and various other relevant topics, of interestand concern to the business community.In New York, he said that India could not afford to letgrowth slow down because millions of Indians living inpoverty still need to be empowered. The reason Indiahas been able to show robust growth is because ofstrong economic oversight by the RBI and SEBI (whichare independent of the government), and due to strongdomestic demand and consumption. Calling for moresynergy and understanding between India and theUnited States, he listed infrastructure, agriculture, IT,science and technology, energy, communications andeducation as priority areas, urging greater Americaninvestments in India.CII-USIBC Session with Jairam RameshThe Confederation of Indian Industry’sWashington office, in partnershipwith the US India Business Council,hosted a breakfast session for Mr.Jairam Ramesh, Minister of Forestand Environment, India, on his firstvisit to the United States after takingcharge of this portfolio.Speaking to US industry, thinktank energy specialists and USJairam Ramesh,Minister of Forestand Environment,Indiagovernment representatives, the minister affirmedthat India is set to be a part of an equitable solutionat Copenhagen, and that its energy efficiency effortsare a huge opportunity for Indo – US private sectorcollaboration on project financing, technology transfersand capacity building. He noted that while thebig players in Indian industry are acting upon thechallenges, the real issue will be with Indian SMEsgiven their limited access to technology and funds.International collaborations could speed up adherenceto national emission standards on a larger scale, hesaid.Mr Ramesh addressed issues ranging from internationalMRVs and domestic regulatory enforcement for energyprojects to black carbon and lifestyle changes requiredboth in India and the US to reduce emissions. Hiscomments displayed a great technical understandingfor this complex, multi-dynamic issue of climate changewhile positioning India’s proactive and extensiveinitiatives to incorporate energy efficiencies into policyand action.Interaction on Clean TechnologiesCII organized an interaction of the Indian businesscommunity with Mr Michael Froman, Deputy NationalAdvisor for International Economic Affairs and SpecialAdvisor on Economic Affairs to President Obama andMr David Lipton, Special Assistant to the US Presidentfor Economic Affairs. They interacted with a small groupof companies engaged in clean energy and cleantechnology and learned more about the clean energy74 | November 2009 Communiqué

eportMichael Froman with Indian industry leaders in Mumbailandscape in India. Members briefed them on the issuesand challenges in growing the clean energy space, andsuggested ways in which the US could assist theseclean energy initiatives either by way of technologytransfer or funding. The discussions revolved aroundexploring sync areas and partnerships between the twocountries in the areas of solar energy, bio-mass, feedstock for bio diesel, nuclear energy, clean technologyand an overall need for a suitable regulatory framework.Members were apprised of some challenges that woulddevelop for Indian companies, including the availabilityof VC and tech funds.CII-USIBC ‘Green India’ MissionUSIBC, in partnership with CII, organised its firstever annual ‘Green India’ Mission which witnessedparticipation from over 25 of America’s leading cleanenergy and water infrastructure companies developing,deploying and financing low-carbon technologies– including clean hydrocarbons, renewable power,biofuels, water treatment, waste management, emissionscontrols, and energy efficiency. Keenly interestedin the Indian market and eager to support India’sgoal to develop energy infrastructure and achieveenergy security, the American companies discussedexciting opportunities as well as challenges with CIImembers. They exchanged views on partnershipbetween American and Indian companies to help Indiameet its growing power needs in an environmentallyfriendly manner. Apart from one to one meetings,CII members also joined the US delegation for aninteractive session with Mr Farooq Abdullah, Ministerof New and Renewable Energy, India, where broadranging issues on Indian renewable energy sectorwere raised and discussed.President Obama’s Diwali MessageOn behalf of the United States, President Obama wished‘Happy Diwali’ to everyone in the world that celebratesthe ‘Festival of Lights.’US Economy Watch product - the output of goods and services producedby labour and property located in the United States -increased at an annual rate of 3.5 percent in the thirdquarter of 2009. of $128.2 billion and imports of $158.9 billion resultedin a goods and services deficit of $30.7 billion, downfrom $31.9 billion in July, revised. increased or 0.2 percent, and disposable personalincome (DPI) increased 0.1 percent, in August. Personalconsumption expenditures (PCE) increased $129.6billion, or 1.3 percent.US-India Bilateral Update are proposing to set up an India-US EducationCouncil, including representatives of Industry andEducation. The Council will coordinate the movingforward of bilateral relations in education betweenthe two countries. This was discussed during ameeting between Mr Kapil Sibal, Minister for HumanResource Development, India, and Mr. William Burns,the US Under Secretary of State for Political Affairs, inNew Delhi. collaborate on setting up of a regional global diseasedetection centre in Delhi, discussions on which figuredprominently during a meeting between Mr Ghulam NabiAzad, Health Minister, India, and Under Secretary WilliamBurns in New Delhi. The US Centre for Disease Controland Prevention (CDC) and the Indian National Centrefor Disease Control (NCDC) are to collaborate to setup the proposed centre. air forces trained together during exercise Cope Indiafrom 15-24 October in Agra. More than 150 U.S. airmenjoined the exercise. Indian companies figure in this year’s Forbes list of midandsmall-size companies – ‘Asia’s 200 Best Under ABillion.’ The list includes Biocon, Birla, Deepak Fertiliser,Divi’s Lab, Everest Kanto Cylinder, FDC, Geodesic, GSSAmerica Infotech, ICSA, IVRCL, Micro Technologies, NitinFire, Opto Circuit, Pareskh Aluminex Raj Television andSelan Exploration. Forbes said: “This year’s list of thebest small- and mid-size companies in the Asia-Pacificregion is chock-full of survival stories and lessons forentrepreneurs.”Communiqué November 2009 | 75

EastOrissaExcon Road Show7 October: Bhubaneswarincluding 10 ladies, from West Bengal. Jharkhand andOrissa took part in the event. Dr. P K Pradhan, Director,Sports & Youth Services, Orissa, presented trophies tothe winners.West BengalBreakthrough Management8 October: KolkataRoad Show on ExconContinuing its initiatives towards enabling infrastructuredevelopment, CII Orissa organized a seminar on‘Enhancing Capacities of Construction Equipment forUp-Scaling Infrastructure Development. The seminarfeatured a road show on EXCON 2009 – 5th InternationalExhibition cum Conference on ‘Construction Equipment& Technology’ to be held from 25-29 November at theBangalore International Exhibition Centre (BIEC).J. K. Mohapatra,Principal Secretary,Finance, OrissaSession on GST16 October: BhubaneswarIn continuation of CII’s Pre-budgetMemorandum to the Governmentto announce the roadmap forimplementation of Goods and ServicesTax (GST), a half day session discussedvarious aspects of the Tax.CII Golf Cup30-31 October: BhubaneswarThe second CII Golf Cup tournament was held at theBhubaneswar Golf course with the objective to promotetourism and industry through sport. Altogether 60 golfers,At the CII Golf Cup TournamentProf. Sohji Shiba conducting the session on Breakthrough ManagementCII, along with Consulate of Japan, organized a sessionon Breakthrough Management with Prof. Shoji Shiba,a leading exponent in the field of quality management,for a CEO Master Class. The session was attendedby distinguished members including Mr. SandipanChakravortty, Managing Director, Tata Ryerson, Mr.Sanjay Budhia, Managing Director, Patton, Mr. GanesanNatarajan, President & CEO, Ennore Coke, Prof.Shekhar Chaudhuri, Director, IIM-C, Mr. Ravi Todi,Chairman, CII West Bengal State Council, Mr. MukulSomany, Chairman, CII Eastern Region, and a hostof other CEOs.Industry – Army Partnership13 October: KolkataGen. V K Singh, PVSM, AVSM, YSM, GOC-IN-C,Eastern Army Command apprised CII members aboutthe opportunities for partnership with the Indian Armyin the Eastern Region.Higher Education Meet14 October: KolkataA Higher Education Meet on the theme of ‘IndustryAcademy Partnership – The Emerging Landscape’ broughtthree stakeholders: government, educational institutesand industry together to deliberate on the way forward.76 | November 2009 Communiqué

egionsCII, in association with PwC, has undertaken a studyin select states of the region to identify the skill setsrequired by the new recruits in the year 2015, aswell as to identify and analyze the functional andbehavioural skill set gap perceived by industry. Thestudy was released at the Meet by Mr Satish Ch.Tewary, Principal Secretary, Higher Education, WestBengal. Prof. Shekhar Chaudhuri, Director, IIM, Kolkata,as well as senior representatives from corporates likeInfosys, IBM, and Tata Steel addressed the delegates.At a VC discussion panel, VCs of leading universities ofthe region expressed their views on industry-academypartnership.The deliberations pointed to the need for radical changesto overhaul the higher education system,and for industry-institute collaborationsto convert potential youth pool toemployable resources.Interaction on UAE23 October: KolkataMr. Mohamed Sultan Abdalla Al Owais,Ambassador, Embassy of the UnitedNorth EastMeet on Higher EducationMohamed SultanAbdalla Al Owais,Ambassador, UAEGenerating Awareness on WTO Agreements23 October: GuwahatiCII organised a ‘Workshop on WTO Agreements: ACapacity Building Initiative,’ jointly with the Centre forWTO Studies, Indian Institute of Foreign Trade (IIFT) on 23October in Guwahati. The initiative was supported by theMinistry of Commerce and Industries,India. Industry stakeholders and,central and state agency officials,as well as academia attended theworkshop which disseminatedinformation on technical barriers toDr Bhupati K Das, trade (TBTs) and other non-tariffChairman CII Assammeasures (NTMs) within the ambitState Councilof the WTO Agreements.Arab Emirates spoke about business and investmentopportunities with UAE for industry in West Bengal. Mr.Mukul Somany, Chairman, CII Eastern Region, deliveredthe welcome address.Company Law24 October: KolkataAn interactive session on Company Law was organizedwith Mr. R Bandyopadhyay, Secretary, Ministry ofCorporate Affairs, to collect views and suggestionsfrom the members to serve as feedback for theParliamentary Standing Committee. Mr Bandyopadhyayhighlighted the objectives of the Bill, and assured that therecommendations of CII members would be discussedat the committee and given due consideration.Family Governance27 October, KolkataThe CII FBN India Chapter organized a Workshopon Family Governance and the (New) Constitution ofthe Family, on 27 October in Kolkata, to help familiesin business understand the process, challenges andcommon pitfalls in developing family governance. Theworkshop was conducted by Mr. Anil Sainani, DirectorEmpowering Solutions Private Ltd, who is a FamilyBusiness Advisor and Consultant to many Indianbusiness families.Session on Lateral Thinking27 October: KolkataA Session on Lateral Thinking was held to bring inawareness about Lateral Thinking and its usefulness inan organization. The faculty was Prof. Vidyanand Jha,Associate Professor of Behavioral Sciences, IIM Kolkata.Dr. Bhupati Das, Chairman, CII Assam State Council,and Managing Director, Numaligarh Refinery Ltd, whochaired the sessions, reiterated the developmentmandate of the Doha Round of negotiations at theWTO and the growing use of NTMs. Prof. MadhukarSinha, IIFT, Dr. Murali Kallummal, Consultant, IIFT andMr. Ankur Mahanta, Trade Faculty, CII, made elaboratepresentations on various aspects of the WTO.The workshop is part of a special initiative by theCentre for WTO Studies, IIFT, in collaboration with CII,to disseminate WTO and trade-related issues in 25 to 30cities across India. It is supported by the Governmentof India’s outreach and capacity building initiative oninternational trade.Communiqué November 2009 | 77

egionsNorthChandigarhSession with Gurcharan DasGurcharan Das,noted author12 October: ChandigarhMr Gurcharan Das, eminent authorand public intellectual shared histhoughts about his newly publishedbook titled, ‘The Difficulty of BeingGood: On the Subtle Art of Dharma.’.Justice (Retd) S S Sodhi, formerChief Justice, Allahabad High Court, Dr B N Goswami,a distinguished art historian, and Mr I S Paul, PastChairman, CII Chandigarh Council were also presenton the occasion.R&D Collaboration & Technology Transfer27 October: ChandigarhA session on R&D Collaboration & Technology Transferwith Dr Pawan Kapur, Director, Central ScientificInstruments Organisation (CSIO) was organized toidentify the areas where CSIO can offer technicalassistance and training to industries.with the United Nations – Vendor Registration andDevelopment programme. The session created aninteractive platform between UN Procurement Division(UNPD) representatives and Indian business houses toencourage and increase participation in the UN GlobalMarketplace initiatives.Meeting with Chief Secretary, Delhi13 October: New DelhiCII and the New York Academy of Sciences met MrRakesh Mehta, Chief Secretary, Delhi, and presented aproposal on how to develop Delhi into an internationalknowledge hub of Urban Sustainability and Health;and transform the capital into one of the world’spremier ‘Smart Cities.’ The Chief Secretary evincedkeen interest and has asked CII to submit a detailedproposal to take it forward.Healthcare Mission to Mumbai29-30 October: MumbaiDelhiQC Competition5 October: New DelhiHealthcare Mission members at the Breach Candy HospitalAt the 22nd Quality Control (QC) Circle Competition(Preliminaries), the winners were teams from BELGhaziabad, Bajaj Hindustan and Napino Auto &Electronics. Twelve QC teams comprising of workmengave presentations on the specific projects handled bythem in the work place.Paul Buades,Director, UNProcurementDivisionQC Winners in New DelhiDoing Business with the UN8-9 October: DelhiCII, in association with the UnitedNations and the Department of IndustrialPolicy and Promotion, organized aninteractive session on Doing BusinessCII Delhi State Council organized an experience-sharingStudy Mission to Mumbai. The 16 member mission visitedBreach Candy Hospital Trust, Wockhardt Hospital, PDHinduja Hospital and Tata Memorial Centre to observethe facilities and best practices being followed in hospitaldevelopment and management strategy, healthcareinfrastructure and healthcare delivery.HaryanaSix Sigma Convention27- 28 October: GurgaonQuality is an integral part of a company’s strategywhile the mechanism to achieve quality is a matterof choice. Quality deliverables should be driven fromthe top, declared Mr. Sanjay Kapoor, Deputy CEO,78 | November 2009 Communiqué

egionsBharti Airtel Ltd, at the Valedictory Session of the 6thNational Convention on SIX SIGMA, Sustaining Growththrough SIX SIGMA. Bharti Airtel Limited TransportNetwork bagged the first prize followed by SKF IndiaLtd, Pune and Whirlpool of India Ltd.Himachal PradeshCompetitiveness through Innovative HR9 October: BaddiA Seminar on Competitiveness through Innovative HRPractices was inaugurated by Mr Kirshan Kapoor, Ministerfor Industries, Labour & Employment, Himachal Pradesh.Mr Kapoor lauded the CII initiative, Chetna CareerCounseling Center, which provides soft skill trainingto final year college students. Mr B R Verma, LabourCommissioner, Himachal Pradesh and Mr D L Sharma,Chairman; HR & IR Sub Committee, CII Northern Regionpresented the theme address.Eco-Efficiency & Environmental Excellence10 October: ChandigarhCII HP State Council in association with CleantechInternational Foundation organized a session on Eco-Efficiency and Environmental Excellence through strategicresearch.Mr G V Subrahmanyam, Advisor, Union Ministryof Environment & Forests, who was the Chief Guest,listed various opportunities for strategic environmentalresearch for achieving environmental excellence andcompetitive advantage. The workshop described onthe latest initiatives of Government of India to promoteindustrial research at the corporate level.PunjabS.S. Channy,PrincipalSecretary,Industry &Commerce,PunjabNew SEZ Act of Punjab1 October: ChandigarhCII Punjab State Council organized aninteraction of major SEZ developers ofthe state and other industry stakeholderswith Mr SS Channy, Principal Secretary,Industry & Commerce, Punjab, to discussthe salient features of the upcoming SEZAct. He said the Act would empower thedeveloper and minimize the role of thegovernment.Saving the Girl Child13 October: RoparCII Punjab State Council and DCM EngineeringProducts, Ropar organized a tree plantation drive andan awareness camp to sensitize the residents of Asronand nearby villages on female foeticide. A street playhighlighting the bane of female foeticide and the needAwareness March on ‘Saving the Girl Child’for women’s empowerment and protecting the girlchild was performed by the students of DAV Instituteof Engineering & Technology, Jalandhar.Business with Netherlands26 October: AmritsarMr. Johannes CornelisDe Bruign, CountryCo-ordinator PUM,Netherlands, toldrepresentatives fromvarious industries inthe Amritsar Regionthat PUM has 4000senior experts andJohannes Cornelis De Bruign, CountryCo-ordinator PUM. with Gunbir Singh,Chairman, CII Punjab State Councilis active in 70 countries. In 2008, 120 projects wereexecuted in India.Stress Relieving Workshops26 October: LudhianaThe CII Ludhiana City Development Core Group organizedtwo workshops on ‘Behavior and Stress Management’for over 140 traffic police personnel of all ranks. Seniorfaculty membersfrom ICFAI BusinessSchool, Chandigarhpresented varioustechniques to enabletraffic personnel toeffectively managestress and angerwhile discharging their at the workshopduties.RajasthanMeeting on ITIs13 October, JaipurCII Rajasthan members have adopted 30 ITIs in theCommuniqué November 2009 | 79

egionsstate. To resolve issues and problems regarding thefunctioning of these ITIs, CII Rajasthan organized ameeting with Mr Ajit K Singh, Principal Secretary, Labour& Employment, Rajasthan, and officials of the Departmentof Training, Rajasthan.UttarakhandMeeting on Industrial Development13 October: DehradunMr Rakesh Oberai, Chairman, and Mr Rajiv Berry, ViceChairman, Uttarakhand State Council participated in thereview meeting of the State Level Udyog Mitra chairedby Mr P C Sharma, Principal Secretary.Roundtable on Skill Mapping13 October, HaridwarThe Haridwar Roorkee area, Pantnagar and Dehradun,have emerged as major ‘Industrial Hubs’ in Uttarakhand.To address the increased demand of manpower in theskilled and semi skilled category, a roundtable wasorganised to identify specific skill sets required withinindustry sectors, to learn from the initiatives of individualcompanies for bridging the skills gap, and to ascertainthe role CII can play in this regard.EventConference on Indian Dairy IndustryDr A KSrivastava,Director & ViceChancellor, NDRI,KarnalRoundtable on Skill Mapping in Haridwar22 October: KarnalCII Northern Region, in association withthe National Dairy Research Institute,Karnal, organized a Conference tohighlight the untapped potential of theIndian dairy sector. Speakers highlightedthe need to upgrade technology tocash on the tremendous opportunitiesavailable in the dairy sector. Exports ofdairy products have been growing at the rate of 25%per annum in terms of quantity and 28% in terms ofvalue since 2001. However, there is huge potential forprocessing and value addition.80 | November 2009 Communiqué

egionsSouthCEO Panel Discussion14 October: CoimbatoreColleges of the Coimbatore College Excellence clusterparticipated in a CEO panel discussion with Mr BharathK.S., Chairman, CII Madurai Zone, and Chairman& Managing Director, Aparajitha Corporate ServicesPvt. Ltd, and Mr Ranjit Pisharoty, Member, CII SREducation Sub Committee & Senior Vice President,Strategic Programs, Sutherland Global Services, on‘Knowledge of Current Business Scenario and Its Impacton Employment Market.’Czech Delegation21 October: ChennaiA Czech delegation visited Chennai to explore businesspartnerships on water resource management and wastewater recycling.Kaizen Competition 200923 October: ChennaiPonnala Laxmaiah,Minister, Major &Medium Irrigation,Andhra PradeshWater Infrastructure8 October: HyderabadThe seminar highlighted theimportance of water infrastructure anddeliberated on the opportunities andchallenges it holds with special focuson public private partnerships (PPPs).Mr Ponnala Laxmaiah, Minister forMajor and Medium Irrigation, AndhraPradesh, inaugurated the seminar.KarnatakaInteractive Session on ESI28 October: HubliTo seek clarification on the procedural issues and tounderstand new initiatives of ESI, CII Hubli - BelgaumZone organised an Interactive Session on ESI. Mr. ASrinivasan, Joint Director, ESI, Hubli interacted withmembers and participated in the deliberation.KeralaFINEXE 20091 October: ThiruvananthapuramWinners at Kaizen Competition 2009The fourth annual Kaizen Competition was held thisyear to encourage and motivate membership to developa culture of improvement and innovation within theirorganizations. Conducted for operators in manufacturingand service organizations, the competition witnessed 94Kaizens presented by 29 participating companies. SRFLtd, Viralimalai; Carborundum Universal Ltd, Maniyar andSaint Gobain Glass India Ltd won the first, second andthird prizes respectively.Andhra PradeshTools, Techniques and Formats27 October: HyderabadThe workshop facilitated an understanding of tools in asimple manner; and described the linkage of tools andformats with respect to different pillars of TPM; and thebenefits to be derived from tools, followed by a handson practice session.FINEXE 2009The session promoted an exchange of information andaddressed issues of financing MSMEs to further improvethe development and growth of the sector.Up-scaling Infrastructure Development13 October: KochiMr B Chandramohanan, Chairman, Builders Associationof India, Kochi Centre, represented the contractors andaddressed the session. Mr Sakthikumar Chief OperatingOfficer, Schwing Stetter (India) Pvt Ltd made the themepresentation, and a presentation on EXCON.Interaction with Government Officials16 October: KochiCII members had the opportunity to interact with seniorCommuniqué November 2009 | 81

egionsgovernment officials including Mr K Jayakumar, AgricultureProduction Commissioner, Kerala, Mr K R Viswambharan,Vice Chancellor, Kerala Agricultural University and Mr NRamachandran, Chairman, Port Trust.PuducherrySeminar on Goods and Services Tax (GST)21 October: PuducherryThe Seminar created awareness among Industries inPuducherry on GST and its likely impact on industries.Mr K Vaitheeswaran, Advocate & Tax Consultant, M/s KVaitheeswaran & Co., Chennai made the presentation.Interaction with IT Entrepreneurs22 October: PuducherryThe meeting was held to get inputs for the promotionof IT industries in Puducherry and to understand variousbottlenecks for this. Dr C Muralikrishna Kumar, Advisor,ICT Division, Planning Commission, India, and seniorofficials of the Puducherry Government, interacted withlocal IT, ITES, BPO and IT hardware companies. Meetingson 26 and 27 October discussed and finalized inputsand suggestions for the promotion of IT, ITES, BPO andIT hardware companies in Puducherry.Introduction of New Trades28 October: PuducherryThe Labour Commissioner, Puducherry, convened ameeting with CII, Vocational Rehabilitation Centre forHandicapped(VRC) and schools for physically challengedstudents to identify and introduce three new trades /training activities in addition to the existing trades atVRC Puducherry as directed by the Ministry of Labourand Employment, DGE&T.ZonesChennaiCEO Bouncing Board10 October: ChennaiCII Tamil Nadu is engaging members “at the top oftheir companies” with a unique experience calledCEO Bouncing Board. The Bouncing Board offers theopportunity to take risks; share information, learn growand support each other through experience-sharing thatspans personal and professional topics.Faculty Development Programme28 October: ChennaiThe programme enabled faculty members of AnnaUniversity to interact with industry representatives in theelectronic sector and identify areas they would like tocollaborate with industry in the long run. The participantswere taken on a factory tour of Nokia and Salcomp.Road show on CII Services28 October: VelloreRoad show on CII Services at VelloreThe road show created awareness on CII services amongnew membership in Vellore. The session was addressedby Ms Nandini Rangaswamy, Vice Chairperson, CII TamilNadu, and Managing Director, Chandra Textiles Ltd andMr S Abhaya Kumar, Vice Chairman, CII Chennai.Publishing BPO Services30 October: ChennaiThe conference provided a platform for the publishingBPO services industry and its various stakeholders tounderstand the impact of digital explosion and also toadapt themselves to the changing global trends.CoimbatoreEnergy Conservation7 October: CoimbatoreThe training programme disseminated the latesttechniques and advancements in the field of energymanagement, and described the managerial skillsrequired to sustain energy conservation activities, andpromote ecologically sustainable business growth.Dream Coimbatore10 October: CoimbatoreThe painting contest, a part of the ‘Dream Coimbatore’initiative, had the theme of visualizing ‘Dream Coimbatoreby the year 2025’. Around 2000 students from classes8-12 of 32 institutions participated and painted theirvision for their city.HR Conclave 200914 October: CoimbatoreMr Bharath K S, Chairman & Managing Director,Panel Discussion at HR Conclave82 | November 2009 Communiqué

egionsAparajitha Corporate Services P Ltd explained thatHR is beyond planning and strategic thinking. He alsopointed out the different roles of HR and how importantit is for the overall development of a company. Theconclave concluded with a power-packed CEOPerspective Panel Discussion on the Role of HR inSustainable Growth.ErodeWarehouse and Inventory Management27 October: ErodeThe session helped members understand theimportance of warehousing, inventory and supplychain management in order to gain a competitiveedge in the market.KarurExcellence in Supervisory Skills14 October: KarurThe workshop helped supervisors understand theimportance of their role and specific tasks in becomingmentors who in turn empower people.MysoreInfrastructure in Mysore9 October: BangaloreThe interactive session with Mr T Sham Bhatt, ChiefExecutive Officer, and Executive Member, KIADB,appraised him about the key infrastructural issues facedby companies in Mysore and Najangud, towards workingout an action plan to resolve the issues. Mr Bhatt wastaken around a tour to the industrial areas in Mysoreand Nanjangud prior to the session.International Financial Reporting Standards15 October: MysoreThe seminar guided industry on the steps involvedin the adoption of IFRS, and the impact of IFRS onbusinesses. Organized in association with KPMG,the session was followed by a panel discussion onthe roadmap and challenges towards IFRS for Indianindustry.ThoothukudiThoothukudi Vision 20259 October: ThoothukudiMr PSS K Raja Sankaralingam, Chairman, CII Thoothukudimet Mr S R Jeyadurai, Member of Parliament, ThoothukudiConstituency, to hand over the report on “ThoothukudiVision 2025”. The MP agreed to implement / take actionPSS K Raja Sankaralingam, Chairman, CII Thoothukudi withS R Jeyadurai, MPon some of the key findings of the report, which arerelated to the Central Government.Interaction with MK Stalin13 October: TirunelveliInteractive Session with M K Stalin, Deputy Chief Minister, Tamil NaduCII members met Mr M K Stalin, Deputy Chief Minister,Tamil Nadu, to hand over their recommendations forinfrastructure requirements of Tirunelveli and Thoothukudidistricts. Mr M K Stalin, said that the Presidential nodfor single window system for granting license toestablish industries in the state would be obtained. Healso highlighted the efforts of the state Governmentin persuading the Centre for a mega project to bringnatural gas from the Godhavari basin to Tamil Naduthrough pipes for a range of applications, includingpower generation.Logistics Management15 October: ThoothukudiA special address on “Logistics Management” to theMBA students of Infant Jesus College of Engineering& Technology focused on various aspects of Logisticsand Supply Chain Management.Emerging World Economic Order29 October: ThoothukudiMr K Pandia Rajan, Managing Director, Ma Foi &Ranstad India shared his experiences in emerging asa successful business entrepreneur in the competitiveworld. He also highlighted the influential role of the WorldCommuniqué November 2009 | 83

egionsBank, International Monetary Fund and the World TradeOrganization in the business economy.TrichyInternal Competitiveness Enhancement22 October: TrichyThe exclusive session was organised for industriesin Trichy to set up the first CII – BHELSSIA InternalCompetitiveness Enhancement Programme (ClusterApproach) for Fabrication Industries. The sessionenabled companies in Trichy to come together andbecome internally competitive by enhancing thequality of their operations and reducing the cost ofmanufacturing.VijayawadaInteraction with US Consul General9 October: VijayawadaMr Cornelis M Keur, Consul General, US ConsulateGeneral, discussed issues relating to Indo-US Tradeand Economic Relations, and said that increasingties between India and US bodes well for bothcountries.Interactive Session with Mr C R Swaminathan13 October 2009: VijayawadaThe interactive meeting with Mr C R Swaminathan,Chairman, CII Southern Region was held to appraisethe Vijayawada Zonal members and non-members onthe activities undertaken by CII in the Southern Regionand the proposed plan for the future. The meeting waswell attended by the members from the Industry andInstitution.Interactive Session on Direct Tax Code27 Oct 2009: VijayawadaMr Ajay Kumar, Commissioner, Department of IncomeTax, Vijayawada delivered the special address in thissession. Mr Pravat Jena, Associate Director, E & YHyderabad made a detailed presentation on the codeand its implications.VisakhapatnamSeminar on Green ICT06 October: VisakhapatnamThe seminar offered an excellent opportunity to shareand understand the impact of Green ICT in the daysto come. The Green ICT initiative is being driven withthe aim to develop standards and new technologies toimprove data center performances; promote the adoptionof energy efficient standards, processes, measurements& technologies; increase computing energy efficiency;increase the use of power management and reducecomputer power consumption.Interaction with CII Regional Chairman14 October: VishakhapatnamMr C R Swaminathan, Chairman, CII Southern Region,updated Vizag Zone members on the activities undertakenby CII in the Southern Region and the proposed plansfor the future.WestRoad Shows on EXCON 200912 October: Nashik14 October: Goa24 October: Indore27 October: NagpurRoad Show on EXCON 2009 in GoaThe Road Shows created awareness amongst end usersabout the event, and the wide variety of constructionequipments, technology and products it offers Indiancustomers with specific emphasis on efficiency,productivity and safety.Clean Technology from Germany13 -14 October: Mumbai & PuneCII facilitated the visit of Dr Ing Horst Dietz and Mr NikolaiDobrott from Apricum GmbH, Germany, by arrangingmeetings with Mr S R Chaudhari, Director General,Maharashtra Energy Development Agency, Pune, andMr Atul Shah, Head Project - India Business, SuzlonEnergy Ltd, Pune, to exchange ideas on building aCleantech cluster in India. They met representatives ofthe Reliance Solar Group in Mumbai.GujaratMentoring Entrepreneurship3 October: VadodaraThe CII-TiE Entrepreneurship Mentoring Workshopwas part of TiE Mumbai chapter’s initiative to reachout to the second tier cities in India for providing84 | November 2009 Communiqué

egionsEffective Presentation Skills30 October: VadodaraThe workshop focused on understanding communicationin the context of formal organisations viz-a-viz differenttarget audiences. It exposed the participants to variousmeans of putting forth view points effectively in a multicultural environment.mentoring support to young entrepreneurs. Well knownentrepreneurs interacted with the participants througha group mentoring session.Industry-Academia Collaboration8 October: AhmedabadThe workshop addressed the need for upgrading thequality of the education, to reduce the existing skill gapand enhance the productivity of India Inc.Enhancing Employability9 October: GandhinagarA meeting with Ms Jayanti S. Ravi, CommissionerHigher Education, Gujarat, was held to discuss FinishingSchool initiatives and the employability of non-technicalundergraduate and graduate students of Gujarat.Energy EXPODelegates interacting with the mentors9 – 11 October: AhmedabadMadhya PradeshOpportunities in Manitoba5 October: IndoreAn Interactive Session with Ms Bonnie de Moissac,International Business Development, Government ofManitoba, and Mr Ajay Pande, Business Immigrationprogramme, Government of Manitoba, described thebusiness and investment opportunities available inManitoba, Canada, and the business immigrationprocedures and investment climate there.Amendments in Industrial Dispute Act10 October: IndoreOverview of the exhibitionThe 4th edition of CII’s Energy Expo 2009, an internationalexhibition, held under the chairmanship of Mr SudhirTrehan, Managing Director, Crompton Greaves Ltd, wassupported by the Union Ministry of Power.The host state was the Gujarat Government(Energy & Petrochemicals Department).Session on Value Engineering10 October: VadodaraThe workshop dealt in contemporarypractices and methodologies pertainingto value engineering for MSMEs.RavindraBiswas,Director-AmvianGirish Patwardhan Advocate, High Court Indore, (left) at the SessionThe brain-storming session was held to understand therecent amendments in labour laws and its implicationson industries.Industry – Institute Collaboration14 October: BhopalThe session brought together Industry and instituteson a common platform to work cohesively to enhanceproductivity in technical education.QC Competition28 October: BhopalTeams from SRF Ltd, Malanpur, Tata International Ltd,The winning QC team in IndoreCommuniqué November 2009 | 85