CII Communique November 2012

`Volume 34, No. 11November 2012Affirmative ActionEnablingEqual Opportunitiesfor anInclusive IndiaINSIDEIndia Showin ChinaIs 6% GrowthPossible?CII Media &Entertainment SummitTowardsSustainable MiningOpportunities inICTE Manufacturing

cover storyaffirmative actionEnablingEqual Opportunities foran Inclusive IndiaAffirmative Action is a voluntarycommitment by Indian companies tohelp the Government and civil society inthe national endeavour to ensure equalopportunity to members of the ScheduledCastes and Scheduled Tribes communities.CII works with industry to anchorAffirmative Action in the corporate agendaCII has led Indian industry’s efforts in makingAffirmative Action an important part ofthe corporate agenda for over six yearsnow, working with both Government andindustry members. This, CII believes,is integral to the growth of a strong and vibrantindustrial sector and a dynamic nation, recognizing thata more diverse workforce is good for business, and amore equitable ecosystem will benefit all sections ofsociety.In 2007, CII formulated a voluntary Code of Conduct,setting out transparent guidelines that required corporatesto have a written policy statement on Affirmative Actionin the workplace. This policy states unequivocallythat recruitment for all jobs would be on the basis ofnormal business parameters, and that there would beno bias against Scheduled Caste and Scheduled Tribecandidates if such applicants possess competitive skillsand job credentials.When choosing business partners, in case of equalbusiness offers, the company would select a businesspartner belonging to a socially disadvantaged section ofsociety. Organizations conforming to the Code commitIt is important to recognizethat Affirmative Action, asdistinct from Reservations, isin the interest of industry toactively support. AffirmativeAction is voluntary actionthat we from industry cantake to help make a segment of societythat has been discriminated against forgenerations become more competitive. Wecan do this by providing supplementaryinputs, education and special training withinand from our organizations to help theseindividuals develop the skills and competenceto compete more easily with the rest of societysuch that members from these disadvantagedsections can take their rightful place in ourorganizations, in the community, and in ournation.Farhad Forbes, Co-Chairman,CII National Council on Affirmative Action, andDirector, Forbes Marshall Pvt Ltd6 | November 2012 Communiqué

cover storyto an employment policy that would be in the publicdomain with employment opportunities being postedon company websites to encourage applicants fromsocially disadvantaged sections of society to apply.Organizations are also required to commit to continuingtraining and skilling programmes for these employees byentering into partnership programmes with educationalinstitutions to support and aid students from sociallydisadvantaged sections of society. Members whoadopt this Code of Conduct also resolve to share theirlearnings and experiences with other members. CII haslaunched a dedicated website (www.ciiaffirmativeaction.in) to facilitate this process.It is gratifying that five years down the line, 795companies have signed the CII Code of Conduct onAffirmative Action, and have not only honoured thecommitments of the Code, but have also taken themforward.In line with the significance CII attaches to AffirmativeAction, the organization has regular interactions withmembers at committee and council meetings. Lastyear, a survey was conducted to assess the workbeing done by members in this field. Successfulinitiatives undertaken by members are reported in themagazine, Endeavour, published from all the four CIIregional offices, which disseminates information aboutviable models that can be replicated by others and alsoencourages companies that have not yet committedto Affirmative Action to do so.A very significant step has been CII’s engagement withthe Dalit Chamber of Commerce and Industry (DICCI)that seeks to link Scheduled Caste and ScheduledTribe entrepreneurs with corporate India to encourageSupplier Diversity. In December last year, DICC organizeda trade fair that featured 200 Dalit companies involvedin manufacturing, construction, trading, health, hospitalityand the knowledge industry. This was an importantinitiative to showcase the strength and potential of thisvital sector.CII has also welcomed the new Government policywhereby Government departments and state-runenterprises will give preference to small units in theprocurement of goods and services, with 4% of the20% procurement target being reserved for ScheduledCaste and Scheduled Tribe entrepreneurs. To givegreater impetus to this endeavour, CII has proposedcluster training programmes for SC/ST suppliers to raisequality and assist in streamlining production. This willundoubtedly help integrate this sector into the nationaleconomic mainstream.CII Code of Conduct on Affirmative ActionThe CII Code of Conduct on Affirmative Action is avoluntary commitment to be followed by companies.The Code relates to non-discrimination, assistance,and transparency with respect to employees/applicants/ vendors from the Scheduled Castes andScheduled Tribes communities. The key points of theCode are that the company• Affirms the recognition that its competitiveness isinterlinked with the well-being of all sections ofIndian society.• Believes that equal opportunity in employmentfor all sections of society is a component of itsgrowth and competitiveness. It further believesthat inclusive growth is a component of growthand development of the country.• Affirms the recognition that diversity to reflectsocially disadvantaged sections of society in theworkplace has a positive impact on business.• Will not practice nor support conscious discriminationin any form. Does not bias employment away fromapplicants belonging to disadvantaged sectionsof society if such applicants possess competitiveskills and job credentials as made public.• Selects business partners not based on anyconsiderations other than normal businessparameters. In case of equal business offers, thecompany will select a business partner belongingto a socially disadvantaged section of society.• Has/ will have a written policy statement onAffirmative Action in the workplace.• Has/ will have an employment policy that is inthe public domain. It may place such policiesand employment opportunities on its website toencourage applications from socially disadvantagedsections of society.• Makes / will make all efforts for up-skilling andcontinual training of employees from sociallydisadvantaged sections of society in order toenhance their capabilities, and competitive skills.• Has/will have a partnership programme witheducational institution/s to support and aid studentsfrom socially disadvantaged sections of society.• Makes available its learning and experiences asa good corporate citizen in Affirmative Action toother companies desiring to incorporate suchpolicies in their own business.Communiqué November 2012 | 7

cover storyInclusiveness and socialequity must be a keyc o m p o n e n t o f g r o w t hstrategies, and industry isnot only conscious of thisfact, but keen to contribute. Itis therefore absolutely criticalto create an environment where weaker sectionscan productively participate in the economicmainstream.B Muthuraman, Past President CII, andVice Chairman, Tata Steel Ltd. andChairman, Tata International LtdFocus on the 4 EsFor SC/ST candidates to achieve their full potential,special attention needs to be paid to the 4 Es: Education,Employability, Employment and Entrepreneurship. It isthe 4 Es that will enable SC/ST candidates to have alevel playing field when applying for jobs, or indeed inthe workplace.Education: CII members provide scholarships todisadvantaged youth from the community. CII itselfsupports 200 scholars through the Foundation forAcademic Excellence and Access (FAEA). CII also plansto launch Project Vidya that will establish 20 singleteacher schools in 20 tribal hamlets in Andhra Pradesh,to give around 600 children get access to education.Employability - Skills Training: In the field ofEmployability, CII initiatives have seen a total of102, 437 individuals receive enabling Skill DevelopmentTraining since 2007. Other important initiatives include aDistrict Development Plan and Employability PotentialReport conducted in Nawanshahr and Cooch Biharto identify areas in these districts where interventionscould be successfully undertaken. On the basis of thesestudies, a multi-disciplinary Skill Gurukul is being setup in Nawanshahr. CII members have committed torecruiting the trained candidates.Another initiative is the joint collaboration between CII andPan IIT Alumni Reach for India (PARFI) in setting up SkillTraining Centres in rural areas on a residential Gurukulmodel with each Gurukul having an annual trainingcapacity of 250-500 candidates. Thirty such Gurukulsare being set up across the nation, with 11 alreadyoperational, to provide the all-important market linkageand encourage employment of trained candidates.Skills Training is also being imparted through the CII SkillTraining Hubs, with a capacity of 1500-3000 candidates perannum. These hubs, located in the districts, will impact andbenefit members from the SC/ST community. Skill Hubsare already operational in Chhindwara, Madhya Pradesh;Bhiwadi, Rajasthan; and Balasore, Orissa, with more suchhubs on the anvil.There have also been a number of regional initiatives,spread across the country. They include:• Teacher’s Training Workshop and Career Counsellingfor students in Bijapur, with a focus on mechanicalengineering, computer sciences and management(BBA) graduates.• The CII-SECAB (Socio Economic Cultural AssociationBijapur) initiative covered 225+ students across 4polytechnic institutions, including the GovernmentPolytechnic in Bijapur; 30 % of the candidates wereSC/ST.• CII-Telcon Skill Development Initiative in Kharagpur,West BengalEntrepreneurship Development: An entrepreneurnurtured from the community acts as an accelerator foreconomic growth and more employment. Towards this,CII has been working on Entrepreneurship DevelopmentProgrammes as well as partnerships with the Dalit IndianChamber of Commerce & Industry to develop suppliersand entrepreneurs.To enable underprivileged youth to gain the necessaryexpertise in setting up their own enterprise, CII and theBhartiya Yuva Shakti Trust (BYST) in partnership withthe Tamil Nadu Adi Dravidar Housing and DevelopmentCorporation (TAHDCO), Government of Tamil Nadu,organized a Business Idea Generation Programme for70 SC/ST youth in Chennai in July. In this cooperativemanagement programme, experienced mentorsfrom industry counseled and handheld unemployedunderprivileged youth, to help them fine tune their ideasinto a concrete business plan and constituted level 1training for entrepreneurship.Over the years, many CII member companies have beensuccessful in empowering a large number of SC/STyouth and helping them to avail of opportunities thatwould otherwise have been closed to them. We sharesome representative case studies.Mahindra and Mahindra Ltd.Mahindra Pride Schools (MPS) have given training toover 4000 students from socially disadvantaged (SC/ST) communities.Srilekha, 21, graduated in computer science with 70%marks, a commendable achievement for a girl who hadto battle against poverty and its attendant problems.8 | November 2012 Communiqué

cover storyIf India has to get completebenefit of its large populationand big market, weakersections of society have to becarried along. And this has toextend beyond industry.Chandrajit Banerjee,Director General, CIIHer father, the sole breadwinner of the family, had apotato chips stall which failed. The family home had tobe sold to repay the debts, leading to truly desperatecircumstances.Srilekha was referred to MPS Chennai for a threemonth course in ITES. This training combined with herpositive “can do” attitude enabled the girl to qualify as aTrainee Programme Analyst. Today, she earns a salary of` 25,000 a month.Tata Communications LtdAshok B. Mahale of Nashik, a poor student, used to getinspired by reading success stories of entrepreneurs.He did not dream that he could one day becomean entrepreneur himself. By sheer chance, he cameacross a small advertisement in a local paper about theEntrepreneurship Development Programme sponsoredby Tata Communications Ltd. He joined the course inNashik.Conducting a business environment scanning exerciseas part of his course training, Ashok identified a gapfor sweet boxes in the city. He sought comprehensiveinformation about the entire manufacturing process forsweet boxes from Udyogwardhini, KVIC Nashik Centreand a few other sources. With an investment of just` 10,000, he started manufacturing sweet boxes. Hisbusiness has now stabilized, and he gets orders fromvarious outlets that manufacture sweets, snacks etc. Inseason, he has a turnover of up to ` 1,00,000/- per monthwhile, on an average, his monthly turnover is ` 25,000. Henow employs three people and has an income of around` 15,000 per month.Zensar TechnologiesZensar launched Udaan, a centre within the the Zensarcampus in Pune, to teach English to children fromlow income/Government schools. Such children aretypically at different levels of learning, making it difficultfor teachers to cater to individual needs in a classroomsetting. The Udaan programme uses digital applicationsto enable children to learn from modules that are bestsuited to them, which also allow them to progress attheir own pace, leading to better learning outcomes ofSpeaking, Listening, Reading, Writing and Grammar.A baseline assessment is carried out to measureprogress.Twelve-year old Jyoti who comes to the Centre afterschool is very pleased. “Didi not only helps me to learnEnglish, she also helps me to learn about computers sothat I can learn on my own. She teaches me throughgames and activities so I love coming here.”Currently, the Udaan programme services 41 studentsfrom classes 5 to 8, from the Chandannagar MunicipalSchool, in three shifts. These classes serve as an enablerfor disadvantaged children from the community to acquirelanguage and computer skills that will open up newavenues for education and employment in the future.Forbes Marshall Pvt Ltd.Forbes Marshall believes that encouraging SupplierDiversity is an effective way of drawing Dalits into thecountry’s economic mainstream, while also enlargingthe talent pool available to industry. It is committed tothe voluntary adoption of Affirmative Action as a meansto this end.The company has helped three entrepreneurs set upworkshops and develop businesses in areas such asfabrication, welding and machining, providing them withfinancial assistance and machinery, while also mentoringthem to become vendors to Forbes Marshall and functionindependently as entrepreneurs. To take an example:Vijay Suwase started work with Forbes Marshall in Puneas a helper on the shop floor 14 years ago. Impressedby his dedication and self-motivation, the companydecided to encourage him to set up his business inmachining components and fabrication of articles forassembly.Forbes Marshall gave Vijay the necessary training,mentored him and also provided him with a powerpress, hand press, cutting machine etc. With these,Vijay set up a small workshop, Asha Enterprises, inrented premises in new Sanghvi. Vijay has now hiredtwo employees and has an income of approximately` 60, 000 per month. He is also a proud tax payer!These success stories are representative of the waysby which appropriate interventions can positively impactnot just individual destinies but also have a catalyticimpact on the aspirations of SC/ST youth who have, inthe past, been excluded from the economic mainstream.Such initiatives accelerate the process of upliftmentof a historically disadvantaged section of society, andhave a transformational effect on the socio-economiclandscape, to make it more robustly representative andequitable, and inclusive.10 | November 2012 Communiqué

commenteconomyIs 6% Growth Achievable?There are indications for positive outcomesin the remaining months of this fiscal year,which should lead to restoration of growth atabove 6% says Chandrajit Banerjee,Director General, CIIAfter the decisive reform policies announcedrecently, industry is hopeful that 2012-13 willend with GDP growth rate of over 6%. Themain reason for this belief is that we see a distinctuptick in investor sentiments, which we think isbound to be followed up by new projects comingback on track.The first quarter growth itself at 5.5% showed thegrowth graph turning up, implying that at 5.3% in theprevious quarter, GDP slowdown may have bottomedout. Q1 industrial growth rate at 3.6% too displayedsignificant gains over the previous quarter at 1.9%.In the two months of Q2, the index of industrialproduction displayed strong revival in August after aslight contraction in July.As per the RBI’s survey, industrial outlook is improvingfor the current quarter. Forecasts by a number of analystshave been brought down, but most are still above the6% level. Signs of revival are also evident in largerorder books and planned capex. All these indicatorspredict a somewhat higher pace of growth for the nextthree quarters.The Government has taken large strides for restoringinvestment confidence. The decision on FDI in multibrandretail was a long awaited step, and had animmediate impact on the mood of investors. Othermeasures to encourage inflow of foreign capital insectors such as broadcasting and aviation, as well asthe intention to lift FDI limits in the insurance sector, too,will help put India back on the investors’ map.The Finance Minister has announced a road-mapfor fiscal consolidation which will go a long way toreassure economic ratings analysts about the healthof the economy. Following up on the initiative toreduce subsidies in gas and diesel, as well as toleverage Aadhar for targeted distribution of subsidies,it reinforces the commitment to keep fiscal deficitunder control, which should ease fund availability forcorporate India. Additionally, proactive steps to garnerresources through disinvestment and other sourcesas announced could keep fiscal deficit for this yearat the targeted 5.3%.There are several other steps that could drive growth forthis fiscal year. CII had urged for a cut in interest ratesfrom the RBI. A rate reduction would immediately sparka new cycle of investment across all sectors, puttingshelved projects back on the table.A determined effort to fast-track large infrastructureprojects would also boost demand for industrialgoods. A National Investment Board could identifyroadblocks and clear hurdles through coordinationwith different ministries and departments, which atpresent is the job of the project managers. In thelonger run, these projects would add greatly tocapacities and unlock fresh investments down theline.Several other reform measures are in the legislativeprocess, including the crucial Goods and Services Taxand the Direct Taxes Code. If these see progress inthe coming Parliament session, it is likely to furtherinvigorate growth. Overall, all indications are for positiveoutcomes in the remaining months of the year, whichshould lead to restoration of growth at above 6% andhigher in the following years.This article by Chandrajit Banerjee, Director General, CII, first appearedin the Asian Age on 1 November 2012.Communiqué November 2012 | 11

economyanalysisRBI Delays Rate-Cut Yet AgainThe second quarter Monetary Policy was presentedby the Reserve Bank of India (RBI) on 30 Octoberin a difficult economic situation triggered bya string of adverse macroeconomic news, owing tomultiple factors, both domestic and global. On theexternal front, an adverse global environment led by afaltering US economy, the continuing downturn in Europeand slowdown in emerging economies contributed tothe weak macro environment. Domestic factors toocontributed significantly to the slowdown in economicgrowth. The RBI chose to keep the repo rate unchanged,but again opted for a Cash Reserve Ratio (CRR) cut by25 basis points (bps). The latter is expected to releasearound ` 175 billion of primary liquidity into the bankingsystem. RBI’s decision to cut the CRR rate was indeeda prudent decision as a high liquidity deficit has adverseimplications for the flow of credit to the productive sectorsand for the overall growth of the economySo far, this fiscal, the RBI has cut the CRR by a cumulative50 bps till date, apart from front-loading the repo ratecut by 50 bps in April 2012. It also pared its growthforecast sharply down to 5.8% from 6.5% for the currentfiscal, citing the pervasive signs of growth slowdown.Inflation forecast on the other hand was scaled up to7.5% from 7.0% by end-March.The Central Bank highlighted the heightened downsiderisks to growth in the wake of intensification of global risksand accentuation of domestic risks by halted investmentdemand, moderation in consumption spending andcontinuing erosion in export competitiveness accompaniedby weakening business and consumer confidence.Growth in the first-quarter slowed down to 5.5% ascompared to 8.0% in the same period last year due to thedrying up of investment and weakening of consumptiongrowth. The sluggish momentum of value added inthe first-quarter was evidentacross all sectors of theeconomy, and particularlyin industry. Persistently highinterest rates have impactedinvestment demand in theeconomy and hurt themanufacturing sector.Admittedly WPI-basedinflation has remainedpersistently high so far thisfiscal, and is an area ofSource: CSOconcern. The CentralBank highlightedthe upside risks toinflation underpinnedby suppressed inflationin the form of underpricingof certain fuelitems and second-roundimpact from the recentdiesel price hike. However,it must be borne in mindthat much of the contributionGDP Growth Remains Subdued (y-o-y %)A cut in policyrates would helprejuvenate growthin industry, whichhas been hitby high interestcosts and flagginginvestmentst othe headline print has been mainly from foodinflation. Non-food manufacturing (core) inflation, which iswidely regarded as the proxy for demand-side pressuresin the economy by the RBI, has moderated in the lastfew months. CII was expecting the declining trajectoryof core inflation to spur RBI to revisit its monetary policystance and cut its policy rates to rejuvenate growth in theindustry which has been hit by high interest costs andflagging investments. However, the Central Bank optedfor delaying the rate cut to early 2013, when it expectsthe headline inflation to moderate.Though the RBI implemented a frontloaded policy ratereduction of 50 bps in April 2012, there hasn’t beensignificant pass-through into banks’ lending rates untilJuly-end. From April-September 2012, the base ratesacross 10 large Indian banks have fallen by only 25 bps.Bank credit growth to the commercial sector moderatedto 15.9% as of end-September 2012 as compared to arobust 20.7% posted last year, as the private sector isdelaying investment due to high cost of credit.CII recommends that the repo rate should be broughtdown from its current level of 8%, by 50 bps immediatelyand another 50 bps subsequently during the course ofthe year in order to revivebusiness sentiments andenable companies to raisecapital at affordable cost.Countries like China have alsoreduced policy rates to spurgrowth. More importantly, thegovernment has started toaddress the fiscal side byannouncing a slew of policyreforms last month, which willhelp to rein in the fiscal deficitthis year.12 | November 2012 Communiqué

viewpointeconomyGold: Riding on LiquidityDespite the relentless hunger for gold in India, the demand for thisasset is affected by normal economic factors such as income andprice, interest rates and exchange ratesRecent data reveals that while Indianshad been increasing their goldconsumption at a steady rate overthe last few years, our hunger for gold hassuddenly nosedived. During April-Junethis year, our gold imports declinedby 47% and amounted to just $9.5billion, almost half of the previous year’s$18.2 billion. This decline is also more thanproportionate to the general decline in imports. In fact,the share of gold and silver in total imports has declinedfrom 14.8% last year to 8.4% this year. In terms of physicalvolumes, the Indian demand for gold jewellery declinedto 124.8 tonnes during 2Q 2012, 30% below the level of179.5 tonnes during 2Q 2011. Some would say this is acorrection that was long overdue.India’s appetite for gold has often been seen as a banegiven its unproductive nature as an asset. Money spenton buying gold has little impact on the economy as itneither boosts consumption nor investment. Since muchof the gold is imported, the main impact is on our tradeand current account deficits, which have increased tounsustainable levels over the past few years. Thereforethe recent moderation in gold demand comes as arelief to those who worry about the macro-economicdimensions of India’s growth. Indeed, the Union Budgetof 2012 had increased customs duty on gold withthe explicit purpose of slowing down gold imports. Inaddition, the recent depreciation of the rupee againstthe dollar has made gold prices prohibitively high forthe Indian consumer, and it may be a while before thedemand for gold picks up in India.Looking at past trends in the demand for gold in India, itis apparent that there have been several ups and downsin the demand. It peaked in 1998 and then again in 2005but declined moderately till 2009. It picked up to recordhighs in 2010 and 2011, but finally began moderatingsince the second half of 2011. The conclusion we needto draw is that despite the relentless hunger for gold inIndia, the demand for this asset is affected by normaleconomic factors such as income and price, interestrates and exchange rates. It is therefore likely that thisdemand will stay subdued for a while in response toslower growth and rising inflation. Yet, if gold continuesto deliver superior returns, investment into gold relatedassets may rise. With the widespread availability ofgold-based ETFs (exchange traded funds),investments into these instrumentshave surged.With central banks in the developedworld aggressively easing monetarypolicy, gold price has been on a risingtrend. In fact, the dollar price of this assetclass has almost quadrupled since theend of 2005. Over the last year, the priceof gold has actually retraced a bit, reflecting somefatigue in the rally. With prices rising almost continuouslyover the last seven years, investors are increasingly facing adilemma. While many feel that this may be an opportunity tobook profit, there is always the fear that they will be provedwrong and this asset class will continue to outperform aslong as the global economy remains in the doldrums andcentral banks continue to print money. Indeed, the mostlikely medium term outcome for gold is that it will continue torise as central banks reflate their economies. That said, oneshould not expect the outsize returns of the past decade,when gold outperformed many other asset classes.In rupee terms, gold has continued to appreciate overthe past year, notwithstanding the collapse in demand.This points to the dilemma being faced across commoditymarkets: while weak demand should lead to a decline inprice, the liquidity pumped in by central banks to shoreup their economies prevents this from happening. At somepoint, if demand remains subdued for long enough, thedemand-supply dynamic could outweigh the monetaryangle and lead prices down. However, that point doesnot seem imminent. At present, the asset price seemsto be influenced more by the actions of central banks,while ignoring weakening physical demand, even in thebiggest markets of gold, which are India and China.From a policy perspective, the importance of increasingfinancial penetration so that every person has access to avariety of saving instruments cannot be denied. The availabilityof alternative financial instruments that offer the safety andliquidity of gold will surely have a sobering impact on Indiandemand for gold over the longer term.This article was contributed by Bidisha Ganguly, Senior Consultant,CII. She can be reached at bidisha.ganguly@cii.inCommuniqué November 2012 | 15

india and the worldspotlightIndia Show in ChinaThe India Show created significant opportunities for synergisticbilateral economic engagement between Indian companies andtheir Chinese counterparts in the automobile industryS Gopalakrishnan, President Designate, CII, andExecutive Co-Chairman, Infosys Technologies Ltd, speakingat the inauguration of the China International AutoParts Expo in BeijingDr S Jaishankar, Ambassador of India to China; S Gopalakrishnan,and Wang Jinzhen, Vice Chairman, CCPITChandrajit Banerjee, Director General, CII; S Gopalakrishnan;Li Rongcan, Assistant Minister of Commerce, China; andRajive Kaul, Past President, CII, Chairman, CII Trade FairsCouncil, and MD, Nicco Corporation LtdChandrajit Banerjee;Wang Guiqing,Vice President,China Chamber ofCommerce for Import& Export of Machinery& Electronic Products,and S Gopalakrishnan,at the signing of theMoU between CII andCCCME in BeijingCommuniqué November 2012 | 17

india and the worldCII, in association with the Union Ministry ofCommerce & Industry, India, and the Embassyof India, Beijing, organized the ‘India Show’ from26-28 October in Beijing, China, concurrently with the6th China International Auto Parts Expo (CIAPE).The ‘India Show’ in Beijing assumes greater significancein the context of enhanced economic and strategiccooperation between the two nations, in a year which hasbeen announced as the ‘Year of India-China Friendshipand Cooperation.’ More than 80 companies participatedin the three day exhibition, showcasing the wide varietyof top class Indian auto parts, along with maintenanceand tuning equipment and general components.As part of the India Show, a high-powered 19 memberCII delegation, led by Mr S Gopalakrishnan, PresidentDesignate, CII, and Executive Co-Chairman, InfosysTechnologies Ltd, visited China from 25-26 October.Economic cooperation between India and China in thelast decade has been a remarkable story, said Dr SJaishankar, Ambassador of India to China, addressing theinauguration of the show. From very modest beginnings,China has become India’s largest trade partner and Indiais China’s seventh largest export destination. Trade lastyear was USD 74 billion and is steadily growing. Whilethis is heartening, it has posed its own challenges interms of a deficit last year of USD 27 billion, which isdifficult to sustain or to defend. Market access for Indiancompanies is a major concern and that is precisely whyit is important that so many of them are here today,he said.Sino-Indian economic relations are now maturing, movingfrom trade to investments, said the Ambassador. Anumber of Chinese auto manufacturers are contemplatingprojects in India. Their success in such a competitivemarket depends on strong relationships with suppliersof components. Impressive though its growth is, theIndia-China economic relationship is an under-leveragedone. We offer each other so many opportunities formutual development. Creating an enabling environmentto take advantage of them is our endeavor, observedMr Jaishankar.Bilateral trade between China and India reached $73.9billion in 2011, and both the countries have sustainedthe world's highest annual GDP growth in the past 10years - 9% for China, about 7% for India, said Mr SGopalakrishan. As per the figures released by China’sMinistry of Commerce, cumulative Chinese investment intoIndia till December 2011 is US$ 575.7 million and Indianinvestments into China stood at US$ 441.7 million. Indianmanufacturing and IT companies are making seriousmoves in China, demonstrating their capabilities in hightechengineering, software development, banking andforex trading platforms, he added. India's IT companiesstarted their businesses in China by serving largemultinational clients in the country. Similarly the Indianmanufacturing companies have been setting up theirfactories in China, in their aspiration to be global playersin their respective sectors, said Mr Gopalakrishnan.He said that more than 200 Indian companies arecurrently present in China to better engage with thelocal market and explore new areas of cooperation.These companies apart from tapping the domesticmarket have been using China as their base to producefor other markets.Engagement between the two countries is strengtheningthrough mechanisms like the Joint Economic Group(JEG) and Strategic Economic Dialogue (SED) with aview to deepen the China-India strategic and cooperativepartnership. As two fast-developing countries, we canlearn from one another and work towards complementingeach other’s strengths for mutual benefit, felt MrGopalakrishnan.Mr Asit Tripathy, Joint Secretary, Union Ministry ofCommerce and Industry, India, declared that theGovernment of India attaches great importance to theeconomic relations between India and China. Expressingconfidence that the target of USD 100 billion bilateraltrade would not be difficult to achieve by 2015, he hopedthat there would be greater investments from the twosides in times ahead, and called for efforts to attain asustainable balance of trade, which is currently in favorof China. Mr Tripathy said that the CII-Embassy of IndiaBeijing book, ‘Retracing the path to prosperity – lessonsfrom India – China Business Partnership’ which wasreleased on the occasion, highlights the importanceof building a good business relationship with ethicsbetween the enterprises of the two countries to promotebilateral trade and investments.Mr Rajive Kaul, Past President, CII, Chairman, CII TradeFairs Council, and, MD, Nicco Corporation Ltd, saidthat the exhibition showcases advance products andservices to bring out the best of the Indian auto-partsindustry. CII had earlier organized four ‘Made in India’shows from 2003 to 2006 in Beijing and Shanghai, hesaid. The keen interest expressed by Chinese automotivecompanies in the Indian auto industry would immenselyhelp promote bilateral economic cooperation betweenthe two countries, he said.Earlier, in his welcome remarks, Mr Chandrajit Banerjee,Director General, CII, said that the Show provided18 | November 2012 Communiqué

india and the worldan opportunity for local industries to understandthe technological advancements, innovations andmanufacturing prowess of the Indian auto componentindustry. He highlighted the huge trade and investmentpotential in areas like infrastructure, engineering,environment, transportation, IT and telecommunication,banking and finance etc.Mr Wang Guiqin, Vice Chairman, China Chamberof Commerce for Import and Exports of Machineryand Electronic products (CCCME), said there is ahuge market in China for Indian auto products, andthe Chinese government welcomes imports of Indianproducts. He expressed confidence that the MoU signedbetween the CII and CCCME would further promotecooperation between Indian and Chinese companies,and invited Indian enterprises to do businesses in allparts of China.However, for a synergistic bilateral economicengagement, there is need for Indian companies totap the opportunities in the Chinese market more closelyand to take advantage of its environment. Similarly, withChinese automobile companies expressing keen interestin the Indian market, the show provided an opportunityfor them to explore new collaboration opportunities withleading Indian auto parts companies in the developmentof their supply chain.Coinciding with the ‘India Show,’ a panel discussionon ‘Retracing the Path to Prosperity: Lessons fromIndia – China Business Partnership’ was held in Beijingon 26 October. The session was attended by over 250participants, and was addressed by Mr K Venugopal,Director, Kasturi & Sons Ltd, Mr Vish Iyer, President– Asia Pacific, TCS Asia Pacific Pte Ltd, Mr SanjeevMohoni, President & CEO, Mahindra Yueda Tractor(Yancheng), Mr Li Xiaoke, Vice President, Huawei IndiaEnterprise Business Group, and Mr Song Yujun, MD,Haier Appliances (India) Pvt Ltd, among others.The ‘India Show’ also featured an Indian wine festival,organized by the Agricultural & Processed FoodProducts Export Development Authority (APEDA), India,as well as an Indian cultural and dance performance,organized by the Indian Council for Cultural Relations(ICCR).The event was supported by the India Brand EquityFoundation (IBEF), Auto Component Manufacturers’Association (ACMA) of India, China Chamber ofCommerce for Import and Export for Machinery andElectronic Products (CCCME), Trade DevelopmentBureau of Ministry of Commerce of the People's Republicof China, and Genertec.CEOs Mission to ChinaChandrajit Banerjee; S Gopalakrishnan; Wang Jinzhen, andWang Li, Director General, International Cooperation Dept., CCPIT,at the India-China CEOs Roundtable Meeting, in BeijingA 20-member CII CEOs delegation, led by Mr SGopalakrishnan, President-Designate, CII, and Co-Founder and Executive Co-Chairman, Infosys Ltd.visited Beijing from 25-26 October, coinciding withthe ‘India Show.’Dr. S Jaishankar, Ambassador of India to China,briefed the delegates about current economic relationsbetween India and China, and emphasized the needfor greater long-term engagement of Indian corporateswith China. The delegation attended a businessseminar, which drew more than 250 representativesfrom leading Chinese companies.CII, jointly with the China Council for Promotion ofInternational Trade (CCPIT), organized an India-ChinaCEOs Roundtable Meeting on 26 October to discuss newareas of cooperation to build long term engagement andto ensure that economic ties become more sustainable.Mr. Wang Jinzhen, Vice Chairman, CCPIT, urged Chinesecompanies to look at potential Indian markets for theirproducts.Mr. S Gopalakrishnan spoke about the currentstatus of Indian investments in China, which are yet toreach full potential. Mr. Chandrajit Banerjee, DirectorGeneral, CII, proposed the setting up of a CII CCPITTask Force which can come out with specific strategies/ recommendations for industry and government of bothcountries to catalyze trade and investment.Around 40 CEOs of leading Chinese companiesrepresenting sectors such as Engineering, Pharma,Financial Services, Renewable Energy etc. participatedin this session.The delegation included Mr. Rajive Kaul, Past President,CII, Chairman, CII Trade Fairs Council, and MD, NiccoCorporation Ltd; Mr. Vish Iyer, President-Asia Pacific,TCS; Mr. T T Ashok, MD, Taylor Rubber P Ltd; Mr.K Venugopal, Director, Kasturi & Sons Ltd., and Mr.Chandrajit Banerjee, Director General, CII, as well asCEOs of Indian companies based in China, such asSBI, NIIT, Mahindra, Reliance Industries, Tata Sons,Aditya Birla, and ICICI Bank.Communiqué November 2012 | 19

india and the worldRetracing the Path to Prosperity:Lessons from India-China Business PartnershipA CII – Embassy ofIndia Beijing book on‘Retracing the Path toProsperity – Lessonsfrom India-ChinaBusiness Partnership’was released duringthe inauguration of theIndia Show, organizedconcurrently with the6th China InternationalAuto Parts Expo on26 October in Beijing.Chandrajit Banerjee, Director General, CII; Wang Guiqing, Vice President, China Chamber of Commercefor Import & Export of Machinery & Electronic Products; S Gopalakrishnan, President Designate, CII, andCo-Founder and Executive Co-Chairman, Infosys Ltd; Dr S Jaishankar, Ambassador of India to China;Rajive Kaul, Past President, CII, Chairman, CII Trade Fairs Council, and MD, Nicco Corporation Ltd; andAsit Tripathy, Joint Secretary Union Ministry of Commerce, India, releasing the CII-Embassy of Indiabook on ‘Retracing the Path to Prosperity – Lessons from India – China Business Partnership’ in BeijingSpeaking on the book, Dr S Jaishankar, Ambassador ofIndia to China, said, “Like the rest of the world, India toohas to appreciate the full implications of the continued riseof China. While our relationship has its share of challenges,China is also an opportunity on the economic side. Bilateraltrade has grown manifold in the last decade and we areentering a phase of greater mutual investments.” Stressingon the need for more Indian businesses to engage withChina, the Ambassador added “Indian companies mustrealize that an important aspect of market access in Chinais having a proximate presence. Secondly, like other largemarkets, local production is a must to address localdemand, both in scale and in its customization. Third,leveraging China’s many efficiencies could assist Indiancompanies in their quest of becoming global.”In recent years, the relationship between China andIndia has maintained good momentum for all-rounddevelopment. With the joint effort on both sides, theremarkable progress achieved in bilateral trade andeconomic cooperation is the highlight of the bilateralrelations. China is now India’s largest trading partnerwith around US$ 74 billion worth goods traded last yearand aiming to touch US$ 100 billion by 2015.Commenting on the Indian investment in China, Mr SGopalakrishnan, President Designate, CII, and Co-Founderand Executive Co-Chairman, Infosys Ltd, said that theIndian manufacturing and IT companies are making seriousmoves in China, demonstrating their capabilities in high-techengineering, software development, banking and forex tradingplatforms. India's IT companies started their businesses inChina by serving large multinational clients in the country butare now closely working with various Chinese companies inhelping them to improve their technology and make themmore competitive. Similarly, Indian manufacturing companieshave been setting up their factories in China in their aspirationto be global players in their respective sectors. Theseinvestments have not only helped them to make inroadsinto the domestic market, but have also become a platformto explore new markets, he added.Indian and Chinese companies are setting up operations ineach others’ countries, in some cases for global markets,said Mr Chandrajit Banerjee, Director General, CII. Theinvestments by Indian corporates in China range acrosssectors like IT, Pharma, Auto components, RenewableEnergy, Machinery, Engineering, Electronics etc. Thesecompanies have established themselves and seamlesslyintegrated into the local ecosystem, thereby makingsignificant contributions to the Chinese economy, societyand local community, in their own manner. “In spite of ourgrowing trade, the bilateral investment of about US$ 1 billionrepresents a huge untapped potential considering the sizeand scale of the two economies. Hence there is a needto take our bilateral relations from pure trade to investmentledtrade, in order to make this economic relation moresustainable and long term”, said Mr Banerjee.This book captures the positive contribution and successfulstrategies adopted by Indian companies invested inChina, to serve as a useful reference for potential Indianinvestors. The stories are captured under the themesLeading the Innovation Charge, Conquering GlobalMarket, Grooming World-class Managers, Boosting theLocal Economy and Giving Back to Society.“This book is yet another initiative of CII in its effort tobuild a strong sense of ‘Brand India’ in China, and sendout a strong message that Indian industry and peopleare valuable business partners,” said Mr Banerjee.Communiqué November 2012 | 21

eventmedia & entertainmentNew Paradigms inMedia & EntertainmentIndia’s Media and Entertainment industry, which includes television, print,radio, and digital media, was pegged at $15 billion at the end of 2011.‘India-The Big Picture,’ CII’s Media & Entertainment Summit discussedissues such as market-driven approach, inadequate focus on certain vitalsectors, censorship hurdles and the roadmap, moving forwardUday Kumar Varma, Secretary, Union Ministryof Information & Broadcasting, addressing theInaugural Session of ‘India –The Big Picture’ inNew Delhi. Also seen:Chandrajit Banerjee, Director General, CII;Andy Kaplan, President, Worldwide Network,Sony Picture Television, and Amit Khanna,Chairman, CII National Committee on Media& Entertainment, and Chairman, RelianceEntertainmentThe new vulnerability of power, its fragilityand brittleness, a different matrix ofaccountability and a deficit of legitimacyare redefining the traditional role of the media.Speed of communication, the expanding publicinformation space and innumerable points fromwhere information is emanating have redefinedthe media industry, and the impact is felt theworld over, including India.This was the focus of discussion in varioussessions at ‘India-The Big Picture,’ CII’s Media &Entertainment Summit, held in New Delhi on 29-30October. Representatives of the fourth estate and thefilm world concurred on some points and differed onothers, as they discussed issues such as market-drivenapproach, inadequate focus on certain vital sectors,censorship hurdles and the roadmap for the $100 billionIndian M&E industry.“We are drunk on our own volumes: largest numberArun Jaitley,Leader of theOpposition(Rajya Sabha)of newspapers in circulation, largest numberof television viewers at 400 million, 100 milliondigital consumers. Digital, in particular, isan indictment of our creative and strategiclimitations – we have 600 million mobilescreens and yet we do not have a uniquecontent proposition for the medium,” said MrUday Shankar, CEO, Star India, in his keynoteaddress, adding, “Our inability to convert thatinto corresponding value is disappointing.”“Media is a globally growing industry – but ourparticipation in that eco-system is zero and India ishardly factored into the global thought process oftechnology or content,” he added. Similarly, on thedomestic front, the industry is yet to fully unlockthe potential of the vast market. India’s Media andEntertainment industry, which includes television, print,radio, digital media, was pegged at $15 billion at theend of 2011. The industry is growing at around 14%22 | November 2012 Communiqué

media & entertainmentIndia'sEntertainment andMedia industryto exceedRs 175,000 croresby 2016India’s Entertainment and Mediasector is expected to grow steadilyover the next five years accordingto the CII-PwC Report titled ‘IndiaEntertainment & Media Outlook2012’. The industry is expected toexceed ` 175,000 crores growingManish Tewari, Union Minister of State (IC) of Information & Broadcasting, releasing the CII-PWCReport on Media & Entertainment. Also seen (L-R) Smita Jha, Leader – Entertainment & MediaPractice, PwC India; Uday Kumar Varma; Chandrajit Banerjee, and Amit Khanna, in New Delhiat a CAGR of 17% from 2012 to 2016, according to the Report, released by Mr Manish Tiwari, the new UnionMinister of State (Independent Charge) of Information and Broadcasting, on the eve of the ‘India-The Big Picture’CII Media and Entertainment Summit in New Delhi, on 29 October.The Advertising segment in India is dominated by the television and print sectors with a combined contribution ofover 80% in the total revenue pie. Both these segments are expected to continue to be dominant in the next fiveyears, says the Report. It sees the Indian E&M industry among the top 15 markets in the world and the fastestgrowing one, followed by China, Russia and Brazil. This growth is largely coming from the burgeoning internetsegment which has the potential to outshine the print sector by 2014.The potential game-changers in this area are going to be Advertising Spend, Consumer Spend, Infrastructureand Policy Support.Advertising Spend contributes approximately 35% of revenues in the E&M industry. However, compared to othercountries, in India, Advertising Spend as a percentage of GDP is very low at 0.3%. The Report expects that entertainmentcontent being accessed through different mediums, and innovation in digital content, will drive Advertising Spend.The key Consumer Spend segments are television subscription, film admissions and print circulation. The average annualspend per capita is a low USD 7 in India as compared to USD 22 in China and USD 65 in Brazil. Rising disposable incomesin India in combined with macro economic stability is expected to drive rapid growth in consumer spend on E&M.Achieving the vision of the E&M industry to reach USD 100 billion will require a consolidated and focussedapproach towards developing and deploying relevant infrastructure, supported by a strong policy framework.High broadband penetration, improved audience measurement mechanisms and regulatory support will providethe necessary impetus to future growth, says the Report.“Working to attain the target of USD 100 billion in the coming years will not only benefit industry but also createlarge scale employment, and help achieve India’s goal of being a knowledge-driven economy through effectivemedia,” said Mr Chandrajit Banerjee, Director General, CII.“Increased advertising and consumer spend will take the industry to the desired heights. This will be fuelledby technological innovation leading to better quality of media content. Internet access will be a key enabler indriving growth,” said Ms Smita Jha, Leader – Entertainment & Media Practice, PwC India.In 2011, the entertainment and media industry was estimated to be ` 80,000 crore, an increase of 17.5% overthe previous year. The television and print segments continued to be the largest contributors to the industry,accounting for 66% of the total revenue. Internet access also contributed a significant 14% (up from 11% in2010), driven by the increasing adoption of mobile internet in the country. However, the contribution from theprint and film segments reduced marginally, with year-on-year growth rates lower than the industry average.Internet access and gaming were the fastest growing segments, with annual growth rates of 57% and 33%respectively. The gaming segment, though a small contributor to the overall industry, is growing due to therising popularity of mobile and online and social media gaming. Television the largest segment, was the highestcontributor (in terms of revenue addition) to the industry, with an annual growth rate of 16%.Communiqué November 2012 | 23

media & entertainmentLeela Samson, Chairperson, CBFC, addressing the session. Also seen: Sudhir Mishra, Film Maker; Mukesh Bhatt, President, Film & TelevisionProducers Guild of India; Shyam Benegal, Film Maker; Shabana Azmi, Actor; Ramesh Sippy, Film Maker; Lalit Bhasin, Chairman, FilmCertification Appellate Tribunal; Jahnu Barua, Film Maker; Gauri Shinde, Film Maker, and Rahul Bose, Actora year. “At this rate, we will still take 15 years to getto $100 billion. Obviously, we want to get there muchfaster. The question is: Why and how do we do that?”Mr Shankar quipped.The recent decision of the government to allow 74%FDI in DTH, IPTV, mobile TV etc. is a key step towardsthe USD 100 billion roadmap, said Mr Uday KumarVarma, Secretary, Union Ministry of Information andBroadcasting. He said many positive steps wouldbe taken to revamp FM Radio toenhance its reach and content. Theempowered Group of Ministers islooking into some of the grey areasin the auction of 839 new FM radiostations across over 290 towns andcities in the country. “We hope tocomplete the auction of the firsttranche of the stations by the end ofthe financial year,” he added.In a scathing attack on trial bymedia, Mr Arun Jaitley, Leader of theOpposition, Rajya Sabha, said thatsuch debates are often based onhalf-truths and imagination. Mr NikGowing, Presenter, BBC World Newssaid, “Media is greatly influencedby technology and speed in whichinformation travels. Political leadersand corporations have to realize thatto become a leader in the technologydriven environment is an oneroustask, where they would be put toscrutiny by the media and by thepublic at large, through twitter andJaved Akhtar,Lyricist & Memberof ParliamentAnil Kapoor,Film ActorMahesh Bhatt,Film Makerother social media.” Mr Vinod Mehta, Advisor, OutlookIndia, said, “What we require is blending good businesspractices with news collection and dissemination,which is a formidable task of the media industry.”Mr Ravi Dhariwal, CEO, Times Group, said that mediais judged by its contemporary relevance and the trustit builds with the general public.The CII PWC Report on Media and Entertainment, and areport on ‘The Role and Role of Law in the M&E sector’by Naik and Naik, were released by Mr Manish Tewari,the new Union Minister of State (IC) of Information andBroadcasting.Shekhar Kapur,Film MakerVidya Balan,Film ActorThe session on ‘Game-changersfor the Film Industry’ saw powerfuldiscussions by directors, actors andproducers, such as Mr Prakash Jha,Film Maker, Mr Javed Akhtar, Lyricistand Member of Parliament, andMr Mahesh Bhatt, Film-Maker. MsLeela Samson, Chairperson, CentralBoard of Film Certification (CBFC),pointed out that when producers anddirectors approach the Ministry fortheir problems relating to Regulation,the issue goes out of the hands ofthe CBFC. Ms Vidya Balan and MsShabana Azmi, both Actors, spokeabout the positioning of women inthe media.Broadband PenetrationAddressing the panel on ‘The GameChangers: Taking M&E industryto $100 bn’, Mr R Chandrasekhar,Prakash Jha, Secretary, Information Technology andFilm Maker Chairman Telecom Commission, saidthe Government is taking proactive steps to enhancebroadband penetration in the country from the present24 | November 2012 Communiqué

media & entertainmentS N Sharma, CEO, DEN Networks Ltd; Anuj Gandhi, Group CEO, Indiacast; Deepak Jacob, President & General Counsel, Head Legal &Regulatory, Star India; Vinod Dhall, Former Chairperson, Competition Commission of India, & Session Chair; Dr Rahul Khullar, Chairman,Telecom Regulatory Authority of India (TRAI); Harit Nagpal, MD & CEO, Tata Sky; Gopal Jain, Advocate, Supreme Court; Ameet B Naik,Managing Partner, Naik Naik & Co., and Vanita Kohli-Khandekar, Contributing Editor, The Business Standardlevel of 20 million to 600 million by 2020, so as tocover the entire breadth and length of the country. “TheGovernment is investing ` 20,000 crore over the next fewyears for strengthening the broadband network in thecountry. This will give a boost to digitization, cloud-basedservices and convergence to reach the common manin far flung areas,” he said. The government’s role, hestressed, would be that of a facilitator and the last milemovers would be cable and telecom service providers.Policy ConundrumDr Rahul Khullar, Chairman, Telecom Regulatory Authorityof India (TRAI) stressed on the need for a separateregulator for content and carriage. He also said thatthe Indian market should not be compared to Westernmarkets and stressed that India is a price-sensitivemarket. Responding to the concerns expressed by MrHarit Nagpal, MD and CEO, Tata Sky and Mr SN Sharma,CEO, Den Networks, on the high rates of taxation forthis industry, Mr Khullar said the regulator is aiming tobring out a White Paper on cross-media ownership, whichwill be done with prior consultation. He also said thatas digitisation progresses, the industry should foreseeand prepare changing business models.The panel on Convergence issues, chaired by Mr NeerajRoy, MD and CEO, Hungama Digital Media, was ofthe view that consumption and monetising of content,global IT systems, infrastructure and policies that dealwith convergence need to be developed to provideclarity to industry players as well as consumers. Thepanel agreed that innovation in convergence will resultin monetisation.Sports & EntertainmentThe final panel discussion on Sports and Entertainmentdebated on whether sports broadcasting in India is onlyabout cricket, or is there an opportunity much beyond,which lies untested and unexplored. “The Government,corporations, media and civil society should comeforward to support sports beyond cricket with a long termroadmap,” said Mr Atul Singh, Chairman, CII NationalCommittee on Sports, and President & CEO, Coca-Cola,India & South West Asia. Ms Sonali Chander, Consultant,NDTV; Mr David Hill, Senior Executive Vice President,New Corp, and Mr Harish Thawani, Executive Chairman,Nimbus Communications, joined the discussions.While there is no doubt that the Indian Media &Entertainment industry is seeing unprecedented growth,the question is when the industry will be able toshed policy inhibitions and grow to USD100-billion.By common consensus, the ‘game changers’ for theindustry were identified as:• Advertisement spends by consumers• Increase in subscriptions• Toning up of infrastructure in all M & E sectors• Robust policy framework• Strengthening broadband networkAtul Singh, Chairman, CII National Committee on Sports, and President& CEO, Coca-Cola, India & South West Asia, felicitating MC Mary Kom,(left), and Vijay Kumar (right) London Olympics 2012 winnersCommuniqué November 2012 | 25

miningfocusTowardsSustainableMiningThe Mining industry in India is a major economicactivity which contributes significantly to growthand employment. India is fortunate to have variousmineral resources that can be the bedrock for the futuregrowth of its economy and industry.The metal and mining industry was estimated to be$106.4 bn in 2010-11, employing nearly 1.5 million peopledirectly and indirectly, and contributing 10-11% to industrialGDP. Hence, it is important to ensure its growth in asustainable and productive manner.The development ofthis sector would result in bringing the local communitiesinto the mainstream and sharing the economic benefitsof mining related activities. Most of our mineral potentialareas are in the interior tribal areas of the country, wherethe development is the lowest. The mineral sector cantransform this scenario by providing employment andinfrastructure creation. The per capita GDP in these mineralrich states compared to the national average underscoresthe strategic need to unlock this potential.The future of the mining sector lies in laying emphasison scientific mining so that state-of-the-art technology isused for exploration, efficiencies are realized, and cleantechnologies and safe mining practices are adopted withadequate supporting infrastructure.Globally, in terms of production, India ranks 2nd inchromite, 3rd in coal and lignite and bauxite, 4th in ironore and 5th in manganese. But the contribution of miningto GDP is low. It has declined from 2.7% in 2005-06 tojust 2.1% in 2011-12. The mining industry needs to workto realize the vision of achieving 7-8% of GDP.The Government of India is actively engaged in policyliberalization, permitting 100% Foreign Direct Investmentin the sector. It should also address specific challenges ininfrastructure, funding, sustainability, land acquisition, etc.CII has been encouraged by the fact that the Governmenthas taken some important steps to attract large privateinvestment in exploration and mining and proactively setup the Anwarul Hoda Committee. To give effect to thepolicy directions in the National Mineral Policy (NMP),the Government evolved a new Mines and Minerals(Development and Regulation) Bill, 2011, after severalrounds of consultations with the stakeholders, including StateGovernments, the concerned Ministries and Departments ofthe Central Government, industry and civil society.The Draft Bill, which is forward-looking in intent, however,still includes crucial issues that would need to be addressedif investment in the mining sector is to be encouraged. CIIhas made a detailed representation outlining key issues ofconcern to industry and specific recommendations on theDraft MMDR Bill. The Draft Bill is currently being examinedby the Standing Committee on Coal and Steel.Mineral resources being finite in nature, the practice,Communiqué November 2012 | 27

miningthe world over, is to augment its exploration throughFirst Come First Serve (FCFS) basis for allocation ofmineral resources. Competitive bidding should onlybe considered for those mineral resources for whichsufficient information on grade, reserves, size, depth,beneficiation etc. are established. Moreover, the mininglease should be offered by competitive bidding only forthose reserves which are proven as per the internationallyaccepted United Nations framework classification.The Draft MMDR Bill, 2011 proposes several additionaltaxes and levies such as contribution to District MineralFoundation (DMF), Central and State Cess, as well asstipulations on Corporate Social Responsibility, and theresettlement and rehabilitation of affected families. Theimpact of this increase in taxation needs to be examinedand addressed. Further, the effective taxation level islikely to increase the cost of product to the customerand create inflationary pressure in the economy.It is important to ensure that mining and explorationactivities provide opportunities for inclusive growth tothe local populations and are conducted under thelegislative framework in the country. The Draft MMDRBill must address these concerns if it is to be a tool foreffectively harnessing India’s rich mining potential.The Mineral sector can contribute very significantly toIndia’s economic growth from its present level, as isseen in the experience of other countries which haveleveraged their mineral resources for growth. India canaim to improve the mining sector’s share in GDP to 8 %.The final legislative framework needs to support policiesfor long term development of the sector and ensure itssustainability and global competitiveness.CII’s forthcoming Global Mining Summit 2012, to beheld on 5 - 6 December in Kolkata, concurrently withthe 11th International Mining and Machinery Exhibitionscheduled from 5 - 8 December, will serve as a platformfor the Government of India to inform Indian industry andthe international business on the latest policy updates.It will also be a forum to seek feedback from industrywithin India and overseas, to understand the pulse ofthe sector. A Buyer Seller Meet is also part of the event.The Summit will focus mainly on exploration, technology,policy and regulatory frameworks and emerging businessopportunities in the Indian Mining sector, the discussionswill centre around strategies to achieve high growth inmining, the role of financial institutions for developing thesector, and environmental and safety issues. The event isbeing organized in association with the Union Ministry ofMines, Coal and Steel, India, and Coal India Ltd.To know more about the event, visit www.immeindia.in. For Summitregistration and other details, please contact Ravi Bhushan atravi.bhushan@cii.in. For exhibition details, please contact LakshmiSriram at lakshmi.sriram@cii.inThe Future lies inScientific MiningThe Indian MiningSector requires afacilitating environmentto draw investmentsand technology to takeit to a new level, saysMr N K Nanda, Chairman, CIINational Committee on Mining, andDirector, Technical, National MineralDevelopment Corporation Ltd, sharinghis views on the key challenges andopportunities aheadThe Indian Mining sector has been facing a number ofchallenges in recent times. Issues related to illegal andunregulated mining and delays due to environment /forest clearance have led to a demand-supply gap in keyraw materials as the production is not adequate to meetthe increasing industrial demand. There is an urgent needto increase the production of key raw materials like ironore and coal by opening new mines.The Governmentneeds to adopt a concerted effort to encourage theopening of new mines in mineral-rich states.India’s geological set-up is similar in many ways tothat of resource-rich countries like Canada, Australia,Brazil, South Africa and Chile. However, in India, themining sector accounts for just 2.5% of the GDP. TheGovernment needs to address specific challenges forpermits, clearances, licenses, infrastructure, funding,environment, land acquisition and encourage moreinvestments from both domestic and foreign players.The future of the mining sector lies in laying emphasison scientific mining so that state-of-the-art technologyand safe mining practices are adopted with adequatesupporting infrastructure.Key OpportunitiesThe projected investment in Infrastructure to the tune of $1 trillion envisaged during the 12th Five Year Plan augurs28 | November 2012 Communiqué

miningwell for the Indian metal and mining sectors. The growthof these sectors is fueled by the demand in the Powerand Steel sectors. The proposed investment from majorpublic sector enterprises to augment capacity augurswell. Private operators are looking to ramp up capacitiesby acquiring mining properties in India and abroad. Thegrowing industrialization in the developing economieshas led to a situation where the demand for minerals hasoutpaced the production, translating into huge opportunitiesfor the mining and equipment industry in India.There is good potential to significantly increase the sharein revenue from mineral production in view of India’srapid urbanization and growth in the manufacturingsector. There is also good scope for vertical integrationto downstream auxiliary industry and manufacturing forthe end product, and share the economic benefits withlocal communities towards inclusive growth.The total mineral potential area in India covers 5.75 lakh sq.km of which only 75,000 sq. km has been explored in detailso far. It is well known that with increase in exploration, thereserve base also increases. The investment in explorationin India has been just ` 400 per sq. km. This translatesinto vast opportunities for Indian corporates and overseasinvestors to broaden their base in exploration activities.There is also a significant opportunity to increase productionthrough beneficiation / concentration of low grade material.Government should also encourage the use of technologyand promote utilization of low grade ore.Major ChallengesSome of the major challenges faced by the Indianmining industry are:• Limited investment in exploration• High taxation level• Environment and sustainability issues• Lack of awareness over economic/ social impact of miningon society and resistance from local communities• Land acquisition issues and delays in statutoryclearances• Ban on illegal mining in States like Karnataka andOrissa• Limited investment in geosciences at the State level• Lack of major investments in mining by overseasplayersThe Draft MMDR Bill 2011CII welcomes the Draft Mines and Minerals (Developmentand Regulation) Bill (MMDR Bill) 2011, as positive,elaborate and forward looking. CII has made a detailedrepresentation outlining key issues of concern to industryand specific recommendations to the ParliamentaryStanding Committee on Coal and Steel chaired by MrKalyan Banerjee.Government’s RoleGovernment must fulfill its responsibility for economicdevelopment and employment generation by playing arole in industrial development. Planned industrializationis essential for job creation and inclusive growth.Government should encourage investment from specializedexploration companies. In addition, venture capital shouldbe encouraged to come into the exploration sectorand mining companies should be given opportunities,incentives and encouragement to carry out exploration.Most of the players in the mining sector are small anddo not follow scientific mining practices. Governmentpolicies should encourage mining companies whichhave adequate technical, financial competence andskill to develop the industry with a balanced social andenvironmental agenda.An enabling mechanism for faster clearances on issuespertaining to environment, forest, license and permits iscritical to realize the full potential of the Indian miningsector.Looking AheadIn coal, India has the fourth largest reserve in the worldat 265 billion tons. It is also the third largest producer ofcoal in the world and annual production is growing at6%. Currently, total coal production stands at about 550million tons against the demand of more than 600 milliontonnes. By the end of the 12th Plan, the coal productionis projected to be more than 1 billion tons.In iron ore, India has the 5th largest reserve base at25.25 billion tons, and is the 4th largest producer in theworld; with annual production growing at 13%.While the mining sector is expected to grow rapidly in thecoming years, it needs a quantum jump in investmentsto achieve the dream of double digit growth as outlinedin the 12th Five Year Plan.The measures taken by the Government in establishing aninvestment tracking body like the National ManufacturingCompetitiveness Council and the setting up of a ProjectClearance Board (PCB) in line with the Foreign InvestmentPromotion Board (FIPB) for speedy implementation ofenergy and infrastructure projects in a time-boundmanner is a welcome move, and will boost investments.This in turn will have a cascading effect and help themining sector to grow.Communiqué November 2012 | 29

sectoral synergiesmanufacturingThe Information, Communication Technology andElectronics (ICTE) sector has grown in recenttimes, driven by the automation in the corporatesector, the government’s focus on e-governance andthe rising domestic consumption of electronic goods,fuelled by higher income levels.However, demand continues to outstrip supply. In 2008-09, domestic demand stood at US$ 45 billion, whileproduction was only about US$ 20 billion. Over the years,the gap has widened, and while demand is projectedto touch US$ 400 billion by 2020, domestic production,at the current rate of growth, would be able to meeta demand of only US$ 100 billion. At this rate, India’simports of electronics will exceed oil imports!To meet this projected demand, appropriate and urgentpolicy interventions are required to create an industryfriendly,enabling environment and attract investmentsinto the sector. ICTE is a technology-driven industry,characterized by shortening life cycles of products, masscustomization, portability, mobility, and miniaturization ofproducts, all of which place great value on the design anddevelopment of products. This necessitates adequatefunding for Research and Development (R&D), as theability to quickly innovate and create a unique sellingproposition is critical to success.Adequate funding and policy initiatives can bring large-scaledevelopment into this sector, which offers huge potentialand can play a critical role in accelerating India’s growthmomentum by enhancing efficiency and competitivenessacross sectors, and employ vast numbers of India’spopulation. More importantly, India can become a majorplayer in the global ICTE production market if it seizesthe opportunity to position itself as a premier ElectronicsSystem Design and Manufacturing hub.One step in that direction would be to address the keychallenge that the sector faces: manufacturing in a Zero-Duty regime. ICTE hardware was the first sector to faceelimination of import duty on account of India signingthe Information Technology Agreement (ITA-1) of WTO,under which the duties on 217 tariff lines were phasedout over a seven year period between 1998-2005.Promoting manufacturing in such an environmentbecame difficult as any cost that did not add valueto the product added to the cost of the manufacturer.These additional costs included higher cost of finance,as well as logistics and transaction costs related toprocedural delays, resulting in blocked capital. Inaddition, inflexible labour laws, inadequate fundingand limited R&D focus made manufacturing evenmore unviable.ICTEManufacturing- the US$100billionInvestmentOpportunityGrowth in ICTE productionlags demand, and over 50% ofthe demand is currently metthrough imports. Facilitativepolicy interventions will attractinvestments and enable Indiato meet the projected demandof US$ 400 billion by 2020Consequently, several manufacturing units closeddown, as trading became more remunerative. ICTEmanufacturers took to meeting their requirementsof components through imports. Consequently, thedomestic manufacturing base for electronic componentshas been shrinking over the years.To address these issues, the CII National Committeeon ICTE Hardware Manufacturing has been makingpresentations to the concerned Government ministries/30 | November 2012 Communiqué

manufacturingIndustry Speak“The ICTE Industry welcomes the Government’spolicy initiatives like EMC, M-SIPS, PMA, CompulsoryRegistration and Safety Standards. The competitivenessof the industry needs to be substantially enhancedthrough simplification / rationalization / eliminationof procedures, reduction in transaction costs andcompensation for disabilities faced. We need tofocus on developing domestic supply chains andattracting investments by creating visibility of the newpolicy provisions amongst potential investors, bothin India and abroad.”Inderdeep Singh, Chairman, CII National Committee on ICTEHardware Manufacturing, and MD, Continental Devices India Ltd.“Opportunity knocks twice. For the electronicshardware industry, this is the second knock. Withdemand estimated to be a phenomenal US $ 400billion, a holistic approach in the form of the NationalElectronics Manufacturing Policy is the source ofrenewed optimism and energy in the industry. Theseare exciting times …Buoyed by robust growth, provendesign competence and reasonable manufacturingexperience, the global search for ‘China +1’ ispointing in one direction - and that is India.”Vinod Sharma, Co-Chairman, CII National Committee on ICTEHardware Manufacturing, and MD, Deki Electronics Ltd.“We are excited by the Government’s focus and aholistic policy framework to kick-start the domesticElectronic System Design and Manufacturing industry.India has the two most critical ingredients - talentedtechnical manpower and a large domestic market,to build a globally competitive ICTE manufacturingindustry. Innovative policies will motivate both Indianentrepreneurs and global players to make India aglobal hub for ICT products.”Sanjay Nayak, CEO & MD, Tejas Networks Ltddepartments/organizations advocating:• Zero Duty on inputs for all items importable atzero duty (i.e. zero duty for all inputs imported formanufacturing an item/product (say a computer), incases where the item/product itself falls under the zeroduty category)• Elimination/minimization of transaction costs• Need for parity of costs for finance, power, transportationand infrastructure with international counterparts“Given a level playing field and an industry-friendlypolicy framework, India can compete with the best inthe world, including China, in hardware manufacturingfor domestic as well as international markets.”Sunil Vachani, Chairman & MD, Dixon Technologies (India) Pvt Ltd“The growing convergence of Information,Communication and Entertainment technology coupledwith the Government’s initiatives, has given a newimpetus to Indian ICTE manufacturing. The ICT industryhas a direct bearing on the country’s GDP, bridging thedigital divide, and removing urban - rural barriers.”J V Ramamurthy, President & COO, HCL Infosystems LtdCommuniqué November 2012 | 31

manufacturing• Parity of taxation on manufactured products andimports (CST, Entry Tax, Octroi, VAT)It suggested the following goals:Short-term• Development of demand through lower price pointsby reducing total taxation to 12%• Use domestic market demand to stimulate Indianproducts and manufactured-in-India products• Nurture Indian product companies through financialincentives and market access• Encourage exports through the inclusion of moreICTE products under the Focus Product Scheme• Make existing investments more competitive• Encourage manufacture of value-added productsMedium-term• Attract investment for ICTE manufacturing• Consider investments in ICTE manufacturing towardsdischarge of defence offset obligations• Encourage R&D to create India-centric productsand IPR; provide fiscal support and incentives fordevelopment and commercialization• Conform to mandatory standards/technical regulationsLong-term• Development of supply chain• Involvement with International Standards Forums• Export promotionThe Committee suggested that India should leveragethe consistently growing domestic demand and promote‘match-making’ between existing Indian manufacturersand manufacturers in developed countries and providean enabling environment for easy relocation. To increaseawareness about these initiatives, road shows whichare government-led and industry supported could beorganized.With the aim of transforming India into an ESDM hub,the Draft National Policy on Electronics, 2011, announcedby the Department of Electronics and IT, Union Ministryof Communications and IT, interalia, sought to:• Provide attractive fiscal incentives across the value chainof the ESDM sector through a Modified Special IncentivePackage Scheme (M-SIPS). The scheme providessubsidy for investments in capital expenditure: 20% forinvestments in SEZs and 25% in non-SEZs. In addition,it provides for reimbursement of CVD/excise for capitalequipment for non-SEZ units. For high technology andhigh capital investment units, like fabs, reimbursementof central taxes and duties is also provided.• Facilitate the setting up of semi-conductor waferfab facilities and an ecosystem for the design andfabrication of chips and chip components.• Provide incentives for setting up over 200 ElectronicManufacturing Clusters (EMCs). The scheme aims toprovide assistance in setting up ‘greenfield EMCs’ andupgradation of ‘brownfield EMCs’. Clusters in ESDMare valued across the globe because of the advantagesthey offer. A well-developed cluster can give a unitlocated in it a cost advantage of 5 to 8% because ofincreased supply chain responsiveness, consolidationof suppliers, decreased time-to-market, superior accessto talent, and lower logistics costs. Besides, a clusteraids the development of an entrepreneurial ecosystemwhich encourages innovation and catalyzes economicgrowth by increasing employment opportunities andtax revenues.The M-SIPS and EMC schemes have already beenapproved by the Government.To give a further boost to the sector, the Government hasissued a notification for providing preference to domesticallymanufactured electronic goods either for reasons ofsecurity or for government procurement. More recently,the Compulsory Registration Scheme of the Department ofConsumer Affairs, mandating compliance of 15 electronicsgoods to Indian Safety Standards, has been notified.Such policy measures will help the sector attractinvestments. However, more needs to be done for it torealize its true potential and help successfully positionIndia as an ESDM hub.Communiqué November 2012 | 33

sectoral synergiesmsmesMSMEs Need to Collaborate & UniteThe 9 th India GlobalSummit on MSMEsbrought delegatesfrom 39 countriestogether to chalk outa growth strategy forthis key sectorJohn Herhalt, Partner, KPMG Canada; Ramesh Datla, Chairman, CII National Commiitteeon IPRs, and MD, ELICO Ltd; Vivek Rae, Secretary, Union Ministry of MSME; Arun Maira,Member, Planning Commission, and Deep Kapuria, Chairman, CII National MSME Council,and Chairman, Hitech Gears Ltd, releasing the CII KPMG Report on Growth ofMSMEs: Opportunities & Challenges, in New DelhiThe 9th India Global Summit on MSMEs 2012,organised by CII in association with the UnionMinistry of Micro, Small & Medium Enterprises,highlighted the urgent need for Indian MSMEs toenhance their benchmark quality standards, boost intrasectorcollaborations, and reduce the dependence onsubsidies and other entitlements.The two-day Summit, held in New Delhi on 29-30 October,underlined the need for an ecosystem that would helpsmall enterprises graduate to the level of mediumenterprises, and enable medium enterprises to growinto large enterprises. The CII National MSME Councilis already working upon an institutional mechanism thatwill assist 25 small enterprises from each region to growto the level of medium enterprises, and help 25 regionalmedium enterprises to develop into large enterprises. CIIhas sought the support of the Union Ministry of MSMEto augment the success of this initiative.Given that 95% of the enterprises in the MSME sector are‘micro’ enterprises, the policy interventions need to bedirected accordingly. A focused, segmented policy approachwill greatly enhance the sector’s growth prospects.In recent years, the Government has ushered inmilestone policies like the public procurement policy andthe defence offset policy to broaden the sector’s marketreach. Defence offset obligations alone are expected tocreate $15-20 billion worth business opportunities forIndian MSMEs over the next decade. However, theseopportunities will translate into business for MSMEsonly if they succeed in raising their quality standards.As such, MSMEs can leverage the opportunities inmaintenance, repair, replacement and upgrade needsof the defence sector, as well as team up with overseasOEMs in the supply of capital goods.Speakers at the Summit underlined the need for arobust ecosystem that would help MSMEs leverage theopportunities that stem from the offset policy. It wassuggested that the Defence Research & DevelopmentOrganisation, Government of India, could develop a bank ofnew technologies and innovations that can be individuallylicensed out to suitable MSMEs for production.Further, as India becomes a hotspot for defence sourcingin areas like aerospace, the FDI cap in the defencesector itself could be increased from the current levels,which would greatly benefit the swathe of MSMEs thatare suppliers in this value chain.The MSME sector, as a whole, can benefit immenselyfrom the new public procurement policy by raisingits quality standards. A 20% share of the $40 billion(` 200,000 crore) worth of public procurements is ahuge business opportunity for the sector.To test the limits of growth, Indian MSMEs require greatercredit and financial support. Currently, these enterprisesare severely constrained by lack of adequate access tocredit and finance support including leasing finance,factoring services and last mile financing. Over theyears, a few Non-Banking Finance Corporations (NBFCs)have stepped in to support MSME financing needs.However, the NBFCs themselves do not receive enoughre-financing support. The sector is also faced with limitedfinancing of start-up enterprises, limited access to VCand PE funding, limited access to technology know-how,and high bureaucratic controls. Besides, most youngstart-ups do not have access to risk capital.It was suggested that CII could take steps to promote thereceivables financing schemes. There is also an urgent need34 | November 2012 Communiqué

msmesto build industry awareness regarding factoring services.Factoring in India accounts for a mere 0.3% of the totalfactoring volume in Asia. At the same time,there is a strong need for enhancing thefinancing for MSMEs in the services sector.Banks and Financial Institutions are generallyloathe to invest in equities of MSMEs. Currently,there is a burgeoning gap between the totalMSME bank loans disbursed amountingto ` 7 lakh crore and investments frombanks in MSME equity that add up to some` 2,500 crore. Even if 1% of total MSMEloans extended by the 89,000 bank branchesin the country is channeled into equities ofMSMEs, the sector’s financing landscapewill stand transformed.Despite enough money going into supporting MSMEsin the country, there is still a ` 3 trillion financing gapthat needs to be bridged. VCs and PEs are now lookingat investment opportunities in the sector. However, PEfunds will seek clear financial returns and exit optionsbefore investing in these businesses.MSMEs on their part would do well to corporatise theirbusiness systems and spread out the promoter riskby creating strong management teams, strengtheningpayment and control systems, and enhancing theadoption of new technologies.Credit and finance apart, access to technology is crucialto the growth of the MSME business in the country. Iftechnology and innovation are employed effectively, Indiawill become a major destination for low cost, high qualitymanufacturing and services. However, lack of technicalknow-how, cluttered product portfolios and high cost oftechnical support are hindering the pace of technology inthe sector. There is lack of understanding, especially amongsmall players, of the importance of IP and patent filing.MSMEs need besides to enhance the use of ICT.Currently, a mere 1% of Indian MSMEs are leveragingICT for business.MSMEs have a key role in the food and agriculturesector. However, many MSMEs operating in the foodprocessing industry face challenges with regard to valueaddition, resource allocation for technology, marketing andprocurement. They also do not get the right kind of foodprocessing equipment. Most of the equipment is importedand does readily meet the local requirement. Focusedattention on the manufacture of food processing equipmentand machinery will greatly aid this sector. Poor supplychain and weak procurement mechanisms are other majorchallenges for export-oriented agro-processing MSMEs.This segment will also benefit from effective data sharing,Voices“We need to build a culture of knowledge-sharingand collaboration among MSMEs and reduce thedependence on subsidies and entitlements. Effectivecollaborations will result in a ‘united voice’ which theclusters can enable.”Arun Maira, Member, Planning Commission of India“The MSME sector needs to chalk out its own growthstrategy which will become a crucial reference pointfor appropriate policy interventions. This articulationshould begin at the cluster level and move up to thestate and national levels.”Vivek Rae, Secretary, Union Ministry of MSMEs‘Large and small sectors need to share a symbioticrelationship, with large enterprises contributing tothe growth of MSMEs. A culture of innovation andacclimatizing in a global business environment willhelp Indian enterprises globalize their activities andgrow.”C K Misra, Joint Secretary (SME), Union Ministry of MSME“CII is creating an institutional mechanism to supportMSMEs to grow. Government support is the key toits success.”Deep Kapuria, Chairman, CII National MSME Council, andChairman, Hitech Gears Ltdstandardisation of industry norms, organising of foodfairs and the creation of a platform for investors to linkup with MSMEs.MSMEs worldwide have also to deal with issues linkedwith global sustainability. In view of these challenges,Government and industry will need to create an enablingenvironment for easy adoption of clean technologies inthe MSME sector.Overall, the Summit was a crucial step towards of buildingstrong collaborations between Indian and global MSMEs.The MSME Mart and the Procurement Meet at theSummit were important initiatives that complemented thecollaborative efforts. It was suggested that Indian MSMEsshould seek partnerships with companies around the worldas well as strive to become a part of the global value chain.A culture of innovation and the effort to acclimatize in aglobal business environment will greatly help enterprisesto globalise their activities and grow.A CII-KPMG report on ‘Growth of MSMEs: Opportunities &Challenges’ was also released at the Summit. The eventdrew the participation of delegates from 39 countriesaround the globe. The deliberations focused upon areassuch as technology, innovation, IPRs, credit, finance, ICT,defence, food processing and sustainability.Communiqué November 2012 | 35

agenda mission 2022India@75 Scholarships for 55 StudentsMr Barry O’Farrell,Premier of New SouthWales, Australia, awardedprestigious scholarships totwo Indian students to studyat Macquarie University inSydney, Australia, at aceremony in New Delhi on1 November. These twoscholarships are the firstof 55 that will be awardedto Indian students, whichwill involve AUD11million infunding over the next threeyears from Macquarie, oneof New South Wales’ leadingresearch universities.The scholarships are aresult of a unique agreementbetween Macquarie Universityand India@75, supportedby CII. Each student willcomplete a PhD at Macquariein an area of researchidentified as important tothe India@75 mission and inwhich Macquarie excels.“This agreement is asubstantial new engagementbetween our countries,” MrO’Farrell said. “It is fantasticto see an Australian universitymaking such a commitment to the development ofresearch capability in India.”“Our partnership with Macquarie University signifies thejoint intent both India and Australia share in meetingthe challenges of the 21st century,” said Mr Adi Godrej,President, CII, Chairman, India@75 Foundation, andChairman, Godrej Group.Mr Kris Gopalakrishnan, President-Designate, CII, Chairman,India@75 Apex Council, and Co-Chairman, Infosys Ltd,described the partnership as a unique framework to engageIndian academic institutions in a bilateral collaborationfocused on creating next practices through research andco-creation for India and the world.The first two scholarship recipients, Mr Ishan Das Rastogiand Mr Aneesh Chandran Bhuvanachandran Pillai wouldProf S Bruce Dowton, Vice-Chancellor, Macquarie University;Dr Rahul Mirchandani, Member, National Committee, India@75, andExecutive Director Aries Agro Ltd; Ishaan Das Rastogi andAneesh Chandran Bhuvanachandran Pillai, Scholarship holders;Barry O’Farrell, Premier of New South Wales, Australia, andRajan Navani, Chairman, India@75 National Committee, TrusteeIndia@75 Foundation, and MD, Jetline Group of CompaniesIndia@75 is a grassroots andpath-breaking initiative ofCII towards realizingthe dream of aninclusive, sustainableand developed Indiaby the year 2022,when the nation completes 75 years of Independence.It is a shared vision of Indians from all geographiesand walks of life. The vision elements are collatedunder seven themes: Moral Leadership/ GoodGovernance/Public Administration • Education andSkill Development • Business and Economic Strength• Urbanization and Environment Sustainability• Technology and Innovation • Agriculture/FoodSecurity and Health • Arts/Sports/Literature.Education and Skill Development is a key focus areaand CII/India@75 has a large partnership network withapproximately 500 educational institutions in India.return to India armed withthe knowledge to makea real difference to thenation, said Prof S BruceDowton, Vice-Chancellor,Macquarie University. Bothcandidates will completePhDs in biotechnology.Macquarie scholarshipsw i l l b e o f f e r e d t ograduates across allmajor Indian universitiesto undertake PhDs andengage in jointly supervisedresearch projects, spendingtime at their home institutionand at Macquarie. Therewill also be academicexchanges across Indiaand at Macquarie. Thescholarships will apply toareas identified as a focusof the India@75 mission,including health, education,energy, transportation,sustainable development,arts, science, sports andliterature.Mr Rajan Navani, Chairman,I n d i a @ 7 5 N a t i o n a lC o m m i t t e e , Tr u s t e eIndia@75 Foundation, andMD, Jetline Group of Companies, signed the AllianceAgreement. The Agreement showcases how a leadingglobal academic institution can enhance the value of acapable young Indian to enable him or her to identifyand design innovative solutions to challenges faced byIndia and therefore emerging economies, he said.Dr Rahul Mirchandani, Member, National Committee,India@75, and Executive Director Aries Agro Ltd, invitedresearch scholars from across the country to apply for thisworld-class research programme. India@75 would play akey role in the selection process and engage with the fieldwork connected with the research proposals. Knowingthat the knowledge being created by the research outputof this programme would directly contribute to India’sdevelopment agenda makes this partnership extremelyrelevant and impactful, he said.36 | November 2012 Communiqué

Innovation‘Decade of Innovation India@ Year 2: A JourneyTowards Innovation Driven Economy,’ the flagshipinnovation event of the Global Innovation & TechnologyAlliance (GITA), CII, and the National InnovationCouncil (NInC) was organized on 30-31 Octoberin New Delhi. Prominent speakers from India andabroad, including industry leaders, entrepreneurs,and representatives of government and institutions,shared their experiences in innovations.Inaugurating the event, Mr. Sam Pitroda, Advisor to thePrime Minister on Public Information Infrastructure &Innovation, and Chairman, National Innovation Council,spoke about the four data centers that the Governmentis going to set up in Delhi, Pune, Hyderabad andBhubaneswar. Apart from these, individual level datacenters are to be built at the state level for monitoringand connectivity, he said.The first issue of the quarterly publication of Indianinnovations prepared by GITA and the TechnologyDevelopment Board (TDB), Department of Scienceand Technology (DST), was released during theevent.Mr Pitroda also gave away the GE India Innovation Awardto a student from IIT-Kanpur for designing a wheel chairwhich can manoeuver stairs. GE sponsored Rs.1 lakhas award money for theinnovator, along witha trophy and citation.He called for a billiondollar fund to feed oninnovative ideas from thebottom of the pyramidwhich are scalableand sustainable. TheGovernment will helpindustry to invest morein R&D and innovation,support small andmedium enterprisesChandrajit Banerjee, Director General, CII; Dr Giora Yaron, Chairman of the Board, Executive Council, TelAviv University; Harkesh Kumar Mittal, Secretary, Technology Development Board (TDB), and Co-Chairman,GITA; Sam Pitroda, Advisor to the Prime Minister of India on Public Information Infrastructure & Innovation,and Chairman, National Innovation Council, and Dr Naushad Forbes, Chairman, CII National Committee onInnovation, and Director, Forbes Marshall Ltd, releasing the TDB Report, in New Delhithrough incentivesand schemes and addsectoral clusters forcollaborative capacitybuilding, he said.Dr Naushad Forbes, Chairman, CII Committee onInnovation, and Director, Forbes Marshall, highlightedthree aspects of innovation. One, innovation was usuallyviewed as something esoteric and other-worldly butit need not necessarily be so. Two, innovation wasgenerally taken to mean as connected with technologywhereas it went much beyond that and could beanything from a portable waste management device toan interesting board game for a child. Three, peoplealways looked for big-bang innovations overlookingthe incremental innovations which were often equallysignificant and life-changing.Mr Harkesh Mittal, Secretary, TDB, and Co-Chairman,GITA, said that investment in innovation gave returnsin multiples of four—for instance, an annual investmentof $55 billion could lead to a 3 % increase in grossdomestic product at $230 billion.Prof Giora Yaron, Chairman of the Board, ExecutiveCouncil of Tel Aviv University, who was present on theoccasion, described the role of academia in spawninginnovations.Mr Chandrajit Banerjee, Director General, CII, appreciatedthe Government’s efforts in creating innovative vehiclessuch as GITA to promote industrial R&D.Communiqué November 2012 | 37

knowledge & innovation initiativesASEAN Agricultural Ministers with Sharad Pawar, Union Minister of Agriculture & Food Processing Industries, India, in New DelhiAndhra Pradesh Technology Developmentand Promotion CentrePATSAT: Patent Search and Analytics TrainingPATSAT training programme in HyderabadThe CII Andhra Pradesh Technology Developmentand Promotion Centre (APTDC), with SciTech PatentArt as the knowledge partner, organized PATSAT- atraining programme on learning the art of PatentSearching for Competitiveness, on 21-22 Septemberin Hyderabad.The training programme gave the participants anunderstanding of the concepts for searching for priorartpatents and the best practices in the field of PatentSearching and Analytics, through hands-on casestudies.Inaugurating the programme, Dr. Sumesh Reddy, SeniorDirector, Intellectual Property; Dr. Reddy’s Laboratories,emphasized the need and importance of conductingpatent searches before venturing into R&D.Science & Technology2nd ASEAN-India Ministerial Meeting onAgriculture and Forestry, and ASEAN IndiaAgri-ExpoThe 2nd ASEAN-India Ministerial Meeting on Agricultureand Forestry, a three-day event held from 17-19 Octoberin New Delhi, was jointly organized by CII and theDepartment of Agricultural Research and Education,Indian Council of Agricultural Research.Ministers, Vice-Ministers, leaders and senior officialsfrom the ASEAN nations and India participated inthe Meet to collaborate more effectively for greaterutilization of resources in agriculture, industries andtrade.Mr Sharad Pawar, Union Minister of Agricultureand Food Processing Industries, India, and Mr.Vilayvanh Phomkhe, Minister of Agriculture, Lao PDR,inaugurated the ASEAN-India Agri-Expo, along withministers and representatives of the ASEAN membercountries. Dr. S. Ayyappan, Secretary, Departmentof Agriculture Research and Education, (DARE) andDirector General, ICAR, Mr Rajesh Ranjan, Director,DARE, and senior officials of DARE and ICAR werealso present on the occasion.The exposition was organized concurrently with themeeting to showcase the technologies of the regionto further promote and intensify cooperation betweenIndia and ASEAN nations in agriculture, forestry andallied sectors. Prominent institutions, industries and R&Dorganizations of the ASEAN region and India displayedrelevant technologies and products having potential foradoption and exchange.India-ASEAN News on Agriculture and Forestry, abi-annual newsletter published by the ICAR, waslaunched on the occasion. The newsletter will actas a window of activities, achievements, agriculturalresearch information and policy issues related to themember-countries.The Association of South-East Nations (ASEAN) is agroup of ten nations – Brunei Darussalam, Cambodia,Indonesia, Lao PDR, Malaysia, Myanmar, Philippines,Singapore, Thailand and Vietnam - which collectivelyworks to accelerate economic growth, social progressand cultural development in the region through mutualcooperation. The ASEAN-India Working Group onAgriculture aims to facilitate the promotion of jointresearch for the development of technologies forincreasing production and productivity in agriculturaland allied systems.38 | November 2012 Communiqué

Rural DevelopmentRural Services - The Next Growth EnablerProf Abhijit Sen, Member, Planning Commission of India; Sanjay K Panigrahi, CEO, SREI Sahaj e-Village Ltd; S Vijay Kumar, Secretary, UnionMinistry of Rural Development; Subodh Bhargava, Past President, CII, Chairman, CII National Council on Development Initiatives, and Chairman, TataCommunications Ltd. and Indrani Kar, Deputy Director General, CII, at the inaugural session of the National Rural Development Summit in New DelhiRecognizing the importance of mainstreamingthe rural economy into the country’s overallgrowth strategy, CII’s 4th National RuralDevelopment Summit, looked at ‘Rural Services-TheNext Enabler.’ Like previous summits, this edition, heldin New Delhi on 17-18 October, focused attention onthe opportunities the rural sector presents with itspopulation of 800 million, who are, in the near future,expected to have an economic worth of close to US $425 billion. Five years from now, the spending power ofrural India will exceed that of urban India. CII thereforeis fully cognizant of the fact that empowerment of thissection of the population is pivotal to any nationalgrowth strategy.The Services sector has great employment andincome generation potential, and has traditionallybeen associated with boosting GDP. Typically, indeveloped societies, the greatest benefits accruefrom the Services sector, but so far, in India, despiterural India’s growing economic clout, with the ruraleconomy out-pacing the urban economy in the recentpast, the Rural Services sector has not shown muchgrowth. This Summit, the first initiative by CII in theRural Sector, focused on Services as an untappedsector with a huge opportunity for businesses, foremployment creation and income generation, in ruralIndia.Engaging all stakeholders, the Summit was an endeavorto create greater awareness of the need to unlockthe growth potential that will take place through thedevelopment of the Services Sector in rural India throughfacilitating corporate partnerships and promoting inclusiveinnovations to take the country forward on a acceleratedgrowth trajectory.Some of the potential sectors in the rural service spaceidentified during the two-day deliberations includedagri-businesses – linking of farm to fork, crop extensionfinance, healthcare, education, ICTE, etc, with a focuson the skill requirements and employment opportunitiesof the youth in rural India.Professor Abhijit Sen, Member, Planning Commissionof India, who was the Chief Guest at the Summit, saidthat it was important to take note of the changes thathave occurred in the last ten years. These includedincreased connectivity both through improved roads, andthe spread of cell phones across India. Other importantparameters were higher enrolment in, and also an increasein the number of students who have completed schooleducation. These developments have in some measure,changed the face of ‘rural’ India, he observed.Communiqué November 2012 | 39

development initiativesT Vijaykumar, Joint Secretary, Union Ministry of Rural Development; Dr K Amarendra Singh, Practice Lead - Health Education & RuralDevelopment, Grant Thornton; Rajesh Urkude, Head – mKRISHI Planning & Operations, Tata Consultancy Services; Sanjay K Panigrahi;Vinod S Kapur, Chairman, Keggfarms; and Siddhartha Shankar, President, Strategy & Business Development, DrishteeBoth industrialization and rural development are part ofthe same process, said Mr S Vijay Kumar, Secretary,Union Ministry of Rural Development. While growth inIndia has exceeded growth in many other countries, thecountry needs to improve its performance on the HumanDevelopment Index, he said, stressing that increasedgrowth was a prerequisite for this to happen. Mr Kumarshared details of various Government initiatives in thisarea, and said that “social mobilization is the key toinclusive growth.”Mr Subodh Bhargava, Past President, CII, Chairman,CII National Council on Development Initiatives, andChairman, Tata Communications Ltd, said that CIIhas been working very closely with industry and theGovernment to integrate rural India into the country’slarger economic growth story. This could be achievedby creating robust, well-integrated and value-addinggrowth chains in the rural sector. He exhorted industryto look at rural India, not just as a market, but as a‘source’ of value-added capabilities. There is a needas well as scope for the development of focused andspecialized services in the rural economy across allthe value chains engaged in both farm and off-farmactivities, he said.Monthly Magazine of top management of 8000 companiesA Journal of Confederationof Indian IndustryThe Facts Print run of over 9000 copies and readership of over 50,000 Monthly Newsletter of top management of 8000 companies Read by CII Members, Thought Leaders, Diplomats,Bureaucrats and other decision makersThe Coverage Business News Economic Policy Update Sectoral Synergies International Reportage IPR & Technology Development Initiatives, and more…Mechanical Details and Tariff*Full page size: 23 cms (height) by 17 cms (width) / Half page size: Size 11 cms (Height) by 17 cms (Width)Full PageLeft hand charges per release: Rs 15,000/ US $ 450Right hand charges per release Rs 20,000/ US $ 575Half PageCharge per Release Rs 8000Double SpreadCharge per release Rs 35,000 / US$ 1000Back CoverCharges per release: Rs 28,000 / US$775Front Inside Cover / Back Inside CoverCharges per release: Rs 23,000 / US$650Premium pages: 1 & 3Charges per release: Rs 22,000 / US$600* All advertisement are non-bleedAnnual Subscription for CII Communique – Rs 1000For more details, Please contact: Ms Sarita Sawhny, Confederation of Indian Industry249-F, Sector 18, Udyog Vihar, Phase IV, Gurgaon - 122 015 (Haryana), India, Tel: 91-124-4013866 / 4014060-67 • Email: sarita.sawhny@cii.in40 | November 2012 Communiqué

development initiativesSkill DevelopmentNational Selections for WorldSkills International CompetitionCII supports theNational SkillD e v e l o p m e n tCorporation (NSDC)through the selectionof the Indian team forthe manufacturing/engineering trades for theWorldSkills Competition,popularly known asthe ‘Olympics of Skill.’O r g a n i z e d b y t h eAmsterdam-based notfor-profitorganizationWorldSkills International,t h e W o r l d S k i l l sCompetition is thelargest vocational skillscompetition globally. Ittakes place in a differentcountry every two yearsand brings together over 1,000 young people, up to 22years of age, from across the world, to compete in avariety of skills ranging from welding to web designing.Competitors representing their countries, pitch their skillsagainst the best in the world to vie for the coveted gold,silver and bronze medals.CII chooses candidates from the Manufacturing/Engineering trades of Mechatronics, Electronics,Welding, CNC Milling and CNC Turning. The tradeshave been selected keeping in mind the demand fromthe industry and the stringent age eligibility criteria ofbelow 22 years.CII represented India in the WorldSkills InternationalCompetitions in Japan in 2007, when the Indiancontingent participated for the first time; then subsequentlyin Calgary, Canada, in 2009, where an Indian participantfrom GTTI Coimbatore came home with a silver medalin Mould-making, and most recently in London in 2011,when 7 competitors participated in 5 trades. A CII skillsdelegation with representatives from both the governmentand the private sector also attended the event.This year, the selections competition for the MechatronicsTrade was held from 22 - 28 September in Pune. Thecompetition drew 10 teams from various organizations/institutions, including College of Engineering, PuneAt the Skills Selection Competitions, in Pune(CoEP); Tata MotorsLtd, Pune; PSG Collegeof Technology; NetturTe c h n i c a l Tr a i n i n gFo u n d a t i o n ( N T T F )Dharwad; Maruti SuzukiIndia Ltd; and GeedeeTechnical Training Institute(GTTI) Coimbatore. TataMotors and GTTI obtainedthe first and runner upposition respectively.Simultaneously, theE l e c t r o n i c s Tr a d ec o m p e t i t i o n , a l s oconducted in Pune on24 - 25 September, had10 candidates from theMaharashtra Academyof Engineering (MAE),Maruti Suzuki India Ltd,NTTF, and COEP. Here, MAE and NTTF emerged aswinners and runners-up respectively.In the selection for the Welding Trade, conducted on25 - 26 September in Pune with 10 competitors, fourcandidates have been shortlisted for the next round,tentatively scheduled for November, of which twocandidates will be finalized. The interest and keennessfrom the Welding community in India towards theWorldSkills International Competition has initiated thenext round of selections with increased candidature.The CNC Milling and CNC Turning Trade competitionwas conducted in Bhubaneswar on 28 - 29 September,with competitors from CTTC, Central Tool Room (CTR)Ludhiana, Tata Motors, Pune, Indo German Tool Room(IGTR), Pune, and GTTI, Coimbatore. After competing along set of tasks, GTTI Coimbatore emerged as winnersfor CNC Turning. The CNC Milling selection will witnessa second round of competition as four candidates havebeen shortlisted. The meritorious competitors are fromCTTC Bhubhaneswar, Tata Motors, and CTR Ludhiana.The winners of the National Selections have commencedrigorous training and will once again be tested in March2013. Subsequently, a final candidate in each tradewill be selected to represent India at the WorldSkillsInternational Competitions in Leipzig, Germany.Communiqué November 2012 | 41

sme competitivenesstowards excellenceCII Avantha Centre forCompetitiveness for SMEsNational Cluster Summit 2012Chandrajit Banerjee, Director General, CII; Vayalar Ravi, then Union Minister of MSME,Overseas Indian Affairs, Earth Science, Science and Technology, (now Union Ministerof Overseas Indian Affairs); Deep Kapuria, Chairman, CII National Committee on MSMEand Yogesh Munjal, Chairman, National Cluster Summit, and MD, Munjal Showa Ltd, atthe National Cluster Summit in GurgaonThe 5th edition of the National Cluster Summitorganized by CII-Avantha Centre for Competitivenessfor SMEs concluded on a highly successful note.This year, the 15th year of Cluster Formation wascelebrated by honouring the pioneers, stalwarts andthought leaders of the Cluster Movement who wereinstrumental in initiating the Cluster Approach, andgrowing it through years of dedication and commitmentto its present level of recognition and success.Inaugurating the Summit, Mr Vayalar Ravi, then UnionMinister of MSME, Overseas Indian Affairs, EarthScience, Science and Technology, (now Union Ministerof Overseas Indian Affairs), said “Cluster Developmentshould be a priority of business strategy. It is the needof the hour.”The highlights of the three day Summit held from18 - 20 October in Gurgaon, included the presentationof awards for Cluster Championship and Kaizensthrough case study- based competitions, and paneldiscussions on topical issues relating to the ClusterMovement and SME competitiveness. The Summitparticularly focused on issues which impact thebusiness, profitability and development of SMEs,including SME finance. Plant visits to benchmarkcompanies were organized on 20 October, providingthe delegates a rare opportunity to witness primafacie the best practices that have been adopted andare being implemented by leading companies. TheSummit was true to its role in providing an effectivenetworking opportunity for all industry stakeholders,especially from the MSME sector. Therewas also a Kaizen Gallery depictinginnovative and ingenious improvementson the shop floor.Cluster Championship AwardsThe Cluster Championship Awards,as usual, saw tough competition.Awards were given under the fourstreams of Manufacturing Excellence,Energy Efficiency, Cost Managementand Total Employee Involvement, withtwo categories - large companies andMSMEs, in each stream.Manufacturing ExcellenceLarge Companies 1 st Maruti Suzuki, Gurgaon2 nd Rane Engines, Hyderabad3 rd Mahindra & Mahindra, Mumbai1MSMEsst Shivai Enterprises, Faridabad, andSanatan Autoplast, Faridabad2 nd Rakheja Engineering, FaridabadEnergy EfficiencyLarge Companies 1 st Godrej & Boyce, Shirwal2 nd Visteon Climate, Bhiwadi3 rd JBML-2, GurgaonMSMEs1 st Track Components, Gurgaon2 nd PM Auto Electro, Thane3 rd KOB Medical Textiles Pvt Ltd, CoimbatoreCost ManagementLarge companies 1 st Godrej & Boyce, Shirwal2 nd Mahindra & Mahindra, Mumbai3 rd Mohindra Fastners, RohtakMSMEs1 st Mechtech India, Navi Mumbai2 nd Trikuta Metal, Faridabad3 rd Arkay Fabsteel, FaridabadTotal Employee InvolvementLarge companies 1 st Lawkim Motors, Shirwal2 nd Mahindra, NashikMSMEs1 st Carrier Engineering, Faridabad2 nd Demag Cranes, Pune, andUSV Ltd, BaddiCommuniqué November 2012 | 45

Kaizen AwardsProductivityLarge IndustriesGold SKH Metals Ltd., FaridabadSilver Godrej & Boyce Manufacturing Ltd, MohaliBronze Godrej & Boyce Manufacturing Ltd, MumbaiMSMEsGold HR International, JalandharSilver SGS TEKNIKS Manufacturing, GurgaonBronze PM Electro Auto, NashikQualityLarge IndustriesGold Neel Metal Product Ltd, FaridabadGodrej & Boyce Manufacturing Co Ltd, andSilverLawkim Motors Group, SataraBronze Visteon Climate System India, BhiwadiMSMEGold Raunaq Automotive Components, GajraulaSilver Progressive Stamping, GhaziabadBronze Track Components, GurgaonEnergy, Cost & SafetyLarge IndustriesSilver 1. Rockman Industries, Haridwar2. Godrej & Boyce Manufacturing, Mumbai3. Asahi Glass, GurgaonMSMESilver 1. DMW CNC Solutions, Perundurai2. Saket Metal Technocraft, Faridabad3. New Swan Auto Comp, Ludhiana“The Cluster Summit is a profound effort from the CII-Avantha Centre for Competitiveness for SMEs to helpSMEs align in the global order of sustainable enterprisecompetitiveness,” said Mr Yogesh Munjal, Chairman,National Cluster Summit, and MD, Munjal Showa Ltd.The event drew overwhelming positive feedback fromall stakeholders including MSMEs and large companies,participants of the competitions, speakers, expertsand general visitors. “Congratulations for successfullyconducting the Cluster Summit. The tremendous effortwhich has gone into the preparation was evidentfrom the way the summit was conducted,” said Mr G.Rangarajan, Chairman, National Institute of Quality andReliability (one of the strategic partners in the ClusterMovement,) Chennai Branch.Corrosion Research DayCorrosion is a huge burden for industry, with an impactof about Rs. 2 lakh crores per annum on the nation’sexchequer. Corrosion Research Day was celebrated bythe CII-Avantha Centre for Competitiveness for SMEs on22 September in Chennai. The event was hosted by theNational Institute of Ocean Technology (NIOT). Eminentscientists like Dr. Baldev Raj, Chairman, CII CorrosionManagement Committee, and Director, Indira GandhiCentre of Atomic Research, Dr. Atmanand, Director, NIOT,and Dr. Kamachi Mudali, Chairman, Faraday CorrosionCouncil, were present.Three booklets on Corrosion and its prevention werereleased, to serve as a practical guide and counsel forindustry in the fight against Corrosion:• Corrosion Inhibitor Applications• Storage & Transit - Do’s & Do Not• Titanium & Zirconium - Materials & CorrosionThe books adopt a reader-friendly approach to presentanti-corrosion practices which can help companiesprevent huge losses. To mark the day, NIOT Chennaihosted elocution and video competitions for about 100students from schools and engineering colleges.Dr Baldev Raj chaired the 9th Corrosion ManagementCommittee (CMC) meeting in Chennai on 22 September.The CMC, an initiative of the CII-Avantha Centre, bringstogether leading experts on corrosion in the country toraise public awareness of corrosion losses and to providebest possible solutions for its mitigation, through training,seminars, workshops and corrosion audits. The CorrosionManagement Service is guided by the CMC.Corrosion Research Day Celebrations, in Chennai46 | November 2012 Communiqué

qualitytowards excellenceQuality Education for Every ChildInnovation opens up newvistas of knowledge andnew dimensions to ourimagination to make everydaylife more meaningful and richerin depth and content”: Dr. AbdulKalam. This thought resoundedthrough the National Summiton Quality in Education heldby the CII Institute of Quality on14-15 September, in Bangalore.India has, over the last sixdecades, achieved the basicgoal of establishing schools andcolleges across the nation. The next logical progressionis to re-orient these to provide quality education. Andthe only driver to bring in a radical transformation in thiscritical mission is Innovation. A document prepared by theNational Knowledge Commission indicates that innovationis a decisive parameter to help stimulate economicgrowth and enhance the knowledge base for the massesin the years to come. The Commission’s researchdocument states: “Innovation and competitiveness havea dynamic, mutual relationship. Innovation thrives in acompetitive environment and in turn, plays a key rolein the achievement of such an environment. Innovationgenerates economic value, new jobs in the economyand cultures of entrepreneurship.”Educational institutions are now increasingly focusing onhow innovation can be optimally leveraged by employing/integrating technology, adopting/adapting best practicesand processes from other sectors like corporate and nongovernmentsectors, and implementing result-orientedprocesses/practices from role model institutions to turninto nurturing and grooming centres for the youth.“Today, the whole world is looking at India and its growth. Forthis, Quality in Education is the primary need of the hour,”said Mr. CT Ravi, Minister of Higher Education, Karnataka, inhis inaugural address. Pointing out that India’s demographicdividend could turn into a boon or a bane depending onhow the nation educates its huge youth force, he urgedall stakeholders in the education sector to come up withstrategies and policy initiatives to help India move into thenext decade as a strong global power. He suggested thatrecommendations emerging from the Summit be sharedwith the Government. The Minister also released a study,‘CII-IQ Education Excellence Initiatives: A decade in review,’S Vaitheeswaran, MD and CEO, Manipal Global Education Services; K N Shenoy Past President,CII, Immediate Past Chairman, CII Institute of Quality, and Chairman, Sobis Software Pvt Ltd; CT Ravi, Minister of Higher Education, Karnataka, and S Chandrasekar, MD, Bhoruka Power Ltd,releasing the publication “CII IQ Education Excellence Initiatives: A decade in review”, in Bangaloreprepared by the Centre for Public Policy, IIM Bangalore.Mr. S Vaitheeswaran, MD and CEO, Manipal GlobalEducation Services, in his keynote address, highlightedthe power of shared knowledge in the 21st centurywhere there are no citadels of secrecy.Mr. K N Shenoy, Past President, CII, Immediate PastChairman, CII Institute of Quality, and Chairman, SobisSoftware Pvt Ltd, in his Special Address, also stressedon the need to innovate and share knowledge to nurturea Quality learning environment.Promoting creativity and incentivizing innovations throughour educational institutions is a first step towards broadeningand deepening the impact of innovations in our societyand economy, said Mr. S Chandrashekar, MD, BhorukaPower Ltd, and Summit Chairman. While catering to avast population with relatively limited resources is a majorchallenge, rapid advances in new technologies, changingneeds of the economy, and the very presence of thechallenges identified above present a fertile ground forpioneering innovations, he pointed out.Over two days, the 550+ delegates at the Summit heardexperts talk about how innovation actually happens, howto build and sustain cultures of innovation, and howchange resistant institutions can alter their ways. Theyalso heard stories of breakthroughs about innovations indifferent facets of the educational process, from science tofine arts. The speakers also pointed out that the paradigmshift in teaching and learning methodologies calls forchanges in evaluation/ assessment techniques too.For more information on the CII Institute of Quality’s EducationExcellence initiatives, please contact Dr Senthil Kumaran, PrincipalCounsellor - Education Excellence at a.senthil@cii.inCommuniqué November 2012 | 47

facetowards excellenceCII Jubilant Bhartia Food andAgriculture Centre of Excellence7th National Food Safety and Quality SummitThe annual CII Food Safetyand Quality Summit,in its 7th edition thisyear, looked at ‘AchievingB e n c h m a r k s i n F o o dManufacturing and Retail.’The Summit, organized underthe umbrella of the CII JubilantBhartia Food and AgricultureCentre of Excellence (FACE)on 11-12 October in New Delhi,featured the presentation of theCII National Award for FoodSafety.Inaugurating the flagship event,Mr Rakesh Kacker, Secretary, Union Ministry of FoodProcessing Industries, urged the industry to transitionfrom regulation to self-regulation. He talked about avoluntary scheme being mooted in consultation withregulators, consumers, and industry, to run in parallelto the existing statutory schemes of the Food SafetyStandards Authority of India(FSSAI).Mr Bruce Ross, Country Director,United States Food and DrugAdministration (USFDA), saidthat USFDA is developingglobal coalitions with regulators,private and public organizationsto develop information-sharingplatforms. He said the FoodSafety Modernization Act, thenew Food Law in the US, wouldplay a bigger role in regulatingfood and drug supply chains incoming times.Mr Rakesh Bharti Mittal,Chairman, CII National Council onAgriculture, and Vice Chairman& MD, Bharti Enterprises Ltd,described CII’s initiatives overthe past 8-9 years in sensitizingRakesh Kacker, Secretary, Union Ministry of Food ProcessingIndustries, at the National Food Safety & Quality Summit inNew Delhi. Also seen: Rakesh Bharti Mittal, Chairman, CIINational Council on Agriculture, and Vice Chairman & MD,Bharti Enterprises Ltd; Arvind Mediratta, COO, Cash & Carry,Bharti Walmart Pvt. Ltd., and Bruce Ross, Country Director,USFDA, IndiaKey Recommendations• Collaborative approach from regulators,Industry, accreditation and certificationbodies, and consumer organisations forco-production of safety• Capacity-building for backwardintegration• Harmonisation of domestic standardswith Codex• Introduction of ‘Q’ mark• Supplier Development Initiative inpartnership with Industry• Regulator-Industry partnership fortransition from erstwhile PFA to FSSA• Code of conduct for manufacturers andmarketers of pesticide and chemicalsused in AgricultureK Chandramouli, Chairman, Food Safetyand Standards Authority of India, andRakesh Bharti Mittal, launching the CIIFACE - IIT Kharagpur, Certified FoodProfessional Courseindustry and consumers on international standards, andoffering training through cluster models. The SupplierDevelopment Initiative and institutionalization of the CIIFood Safety Award are recent initiatives for capacitybuilding,he said.Two key issues that need to be addressed in theIndian food supply chain are ‘FoodSafety’ and ‘Food Security,’ saidMr. Arvind Mediratta, COO, BhartiWalmart. He said that modernretail could play a significant role inimproving food safety and securityby bringing into India global bestpractices and technology in foodproduction and distribution.Mr S.N. Mohanty, CEO, FSSAI,appreciated the genuine difficultiesbeing faced by the industry likelicensing issues in different states,product approvals, importsetc. FSSAI is taking measuressuch as co-production of safetystandards, building an intelligentresponse system focused onrisk- based prioritization, andhorizontal standards setting, toresolve these issues, he said.Communiqué November 2012 | 49

faceTechnical Session 1 focused on‘Emerging Trends in Indian & GlobalFood Sector.’ In Technical Session 2,which looked at ways to “EnhanceBackward Integration for Robust FoodChain,’ Mr. S. Dave, Advisor, FSSAI,talked about harmonization of FSSAIwith Codex, Traceabilty and PrivateStandards. Food Safety is alwaysdriven by the end consumer andthe retailer who demand it, he said,calling for a ‘Code of Conduct’ forthe manufacturers of pesticides andchemicals used in Agriculture, andcapacity-building programmes forbackward linkages in the food chain.Mr Tom Chestnut, Vice President,Global Food Division, NSF International,USA, talked about the Global AuditHarmonization Initiative. Other technicalsessions looked at Food Regulationsand their Impact, and the FoodAnalytical Regime and Food SupplyChain Safety and Efficiency.In his valedictory address, Mr Daveoutlined some key recommendations.He advocated the Cluster approachfor uniform Good Agricultural Practicesand feasible traceability related tosmall farm holdings, supported bycold chain corridors across thecountry for efficient transit of farmproduce to markets. He suggested asector specific Q-Mark for the industrytowards self-regulation and 3rd partycertification. He also called for a Codeof Ethics for marketing and use ofpesticides, collaborative capacitybuildingefforts involving existingfood channels on TV, upgradationof laboratory infrastructure, andinvestments in applied researchMr. Vivek Bharati, Chairman, CII TaskForce on Food Regulatory Affairs,and Executive Director, PepsicoHoldings, said that CII's proposal tolaunch a Quality Mark (a standardbeyond compliance) is intended tostrengthen consumer confidence,and would be a collaborative effortacross industry and government.CII National Award for Food Safety 2012Mr K. Chandramouli, Chairman, FSSAI, felicitated the winners of the oneand only Food Safety Award in the country at a special session duringthe Summit on 11 October.M r C h a n d r a m o u l icongratulated CII FACEf o r p r o m o t i n g F o o dSafety through the Award,and welcomed the CII-FACE initiative towardsinstitutionalising a QualityMark. He also launchedthe CII FACE-IIT CertifiedFood Professional Courseby releasing the brochure.CII FACE and IIT KharagpurRakesh Bharti Mittal and K Chandramoulipresenting the ‘CII National Award for Food Safety’to Ishteyaque Amjad, Director (Corporate Affairs),Cargill India and S Velmurugan, Head of CargillIndia, Kutch Unithave come together in this novel programme to raise the standards ofthe Indian Food and Agriculture industry to global levels. The course forfacilitators comprises a 3 weeks residential course at IIT Kharagpur, 5 weekse-learning, and a month-long industry project.The Food Safety Award programme is an endeavour by CII FACEtowards capacity building of the Food Sector by involving Industry inthe assessment process. Apart from an opportunity to receive nationalrecognition, each applicant organisation receives an external perspectiveon its practices and performance in the form of a detailed feedbackreport. The Award has helped CII FACE reach out to organisations, theirsuppliers and co-packers across India in far-flung locations like Vemagiri,New Jalpaiguri, Zaheerabad, Kandla, Haldwani, Sonepat, Bidadi, Haridwar,Gandhinagar, Bangalore Rural, and many others.Award for Outstanding Performance in Food Safety Excellence• Cargill India Pvt Ltd, Kutch, GujaratCommendation for Significant Achievement in Food Safety• Perfetti Van Melle India Pvt Ltd, Chennai (Large Industry)• Sri Sarvaraya Sugars Ltd, Bottling Unit, Vemagiri (Medium Industry)Commendation for Strong Commitment to Excel in Food Safety• Hindustan Coca-Cola Beverages Pvt Ltd, Atmakuru (Large Industry)• Hindustan Coca-Cola Beverages Pvt Ltd, Bidadi (Large Industry)• ITC Ltd, Haridwar – Foods Plant (Large Industry)• Global Green Company, Zaheerabad (Medium Industry)• Hindustan Coca-Cola Beverages Pvt Ltd, Raninagar (Large Industry)• Jubilant Food Works Ltd, Domino’s Pizza - Kailash Colony: FoodService (Small Eatery)• Jubilant Food Works Ltd, Domino’s Pizza – Rajouri Gardens: FoodService (Small Eatery)Letter of Appreciation• ACME Foods, Haldwani: Rising Star category (less than 3 years inbusiness)50 | November 2012 Communiqué

manufacturing competitivenesstowards excellenceCII Naoroji Godrej Centre of ExcellenceSharpening Negotiation SkillsSuccessful negotiators are not born but groomed and trained.The degree of success depends on how well one is trainedto conclude the trade-off faster, better and profitably.A workshop on 4-5 October addressed the needs of middle,senior and very senior managers who have to negotiate hugeprojects, mega deals, major agreements with employeesand labour, VRS settlements, foreign collaborations andfinancial negotiations for debt and private equity.Innovation for Competitive AdvantageA workshop was held on 5 – 6 October to cultivate acreative problem-solving approach in managers andexecutives within their own spheres of activity. The focuswas on encouraging them to develop their own ideasand put them to the right use, at the right time.Influencing through ListeningListening is not just relevant in social and counsellingsituations. It is one of the basic requirements inconducting effective business. To a large degree,effective leadership is effective listening. A workshopheld on 9 – 10 October helped the participants developthe skills and attitudes necessary for effective ‘listening’in life and at work.Managing ProjectsEffective implementationof strategy dependsupon completing thevarious projects in timeand on budget withoutcompromising on contentand quality. A programme on11 – 12 October equippedprofessionals with a goodproject management processalong with the techniques andtools to achieve the desiredgoals consistently.Sales & Distribution ManagementSales and Distribution Management,as a composite function of Marketing,is critical to the success of anybusiness enterprise. A programmeheld on 12 – 13 October blendedtheory and practice, by presentinglive examples of companies from a variety of businessesand industry case studies for participants to deliberateupon in groups, and make presentations, followed by anopen discussion. Exercises and quizzes enhanced thedelivery of the course.Schemes for Indian ExportsExport incentives are granted from time to time in order toachieve competitiveness in pricing for export markets. Aprogramme on 13 October described the Duty ExemptionScheme and the EPCG Scheme, which are effectiveinstruments for Indirect Tax management.Business Strategy & Strategic ManagementA module held on 15 – 19 October provided knowledgeof some of the current tools and techniques requiredto formulate effective strategies. It also offered anunderstanding of the business environment as a seriesof complex and dynamic processes, and the elementsnecessary for corporate cultural and structural change.The module was conducted by WMG, one of Europe’sleading manufacturing groups, which is involved inpublicly and privately funded research on innovation inproducts and in manufacturing processes, with a focuson research, developmentand application of newapproaches for a wider a n g e o f i n d u s t r i a lsectors. WMG adopts apartnership approach,involving industry closelyin the delivery of itse x t e n s i v e r e s e a r c h ,technology transfer andtraining programmes.Labour LawsThere are a number of labourlaws applicable for runninga business organization.Compliance with these lawscreates a healthy work culture in anorganization. A two day programmeon 30 – 31 October made HR andadministrative personnel aware aboutthe fundamentals and complianceaspects of selected laws and theirbroad provisions.Communiqué November 2012 | 51

towards excellencegreen businessCII Sohrabji Godrej Green Business CentreBooklet on ‘Gifts of Nature’ ReleasedMr David Steuerman, Programme Officer, Business andBiodiversity, Convention on Biological Diversity, UNEP,released an important publication – ‘Gifts of Nature – 101Native Plants For Green Landscape,’ the first of its kindin India, at the Business Case for Biodiversity Forumorganised by CII as a side event of the XI Conferenceof Parties - Convention on Biological Diversity on 17October in Hyderabad.This booklet is an attempt to generate awareness onthe need and importance of our native species.The objective of this booklet is to introduce nativespecies for garden landscapes, most of which havenever been tried in garden planting. Native plants arehardy and drought tolerant, and can play an importantrole in landscaping, while also improving biodiversity.The user-friendly document provides details of 101species which have ornamental and economic value ina lucid and concise manner, as a ready reckoner forAnil Kumar V Epur, Chairman, Green Landscape Committee,CII-Godrej GBC; Suchitra Ella, Chairperson, CII Andhra Pradesh,and Jt MD, Bharat Biotech International Ltd; David Steuerman,Programme Officer, Business and Biodiversity, Convention onBiological Diversity, UNEP, and N Chandra Mohan Reddy, AdditionalCommissioner (Parks), Greater Hyderabad Municipal Corporation,releasing the Booklet on Native Plants in Hyderabadlandscape architects, horticulturists, academia, homemakers and gardeners.The booklet can be downloaded from www.greenlandscape.intowards excellenceleadershipCII Suresh Neotia Centre ofExcellence for LeadershipCustomer Service ExcellenceThe Customer Delight Principle reveals how today'sleading marketers consistently retain and grow theircustomer bases by moving beyond satisfactionto discover and fill eachcustomer's unseen yetessential needs. Theworkshop on 9 Octoberprovided valuable insightinto the need to move to‘customer delight’ fromcustomer satisfaction andhow to design, organize,plan and execute ‘customerd e l i g h t ’ p r o c e s s e s .Knowledge, skills andbehavior needed to manage demanding customersand service recovery were also covered, as was gapanalysis.Time Management SkillsThe one-day MasteringTime Management courseon 18 October providedparticipants with a set ofproven time managementtips and tools to help useof one’s time towards moreeffective, efficient results in allareas of life. It covered timeabuse, SMART management,reducing TAKT time, as wellas prioritization techniques.52 | November 2012 Communiqué

sustainable developmenttowards excellenceThe world today is facing myriad challengesrelated to poverty, food security, income disparity,unemployment, loss of biodiversity, damage to theecosystem, climate change, GHG emissions, depletingnatural resources, unplanned development, sanitation,and energy, to name a few. The 7th annual ‘Sustainableand Inclusive Solutions: Summit & Exhibition,’ heldin New Delhi on 15 -16 October, brought government,business and civil society leaders together to deliberateon the possible path to a sustainable future. There wasunanimous agreement that we need to look beyond theGDP when measuring sustainable development.“India is committed to sustainable development andinclusive growth even when economic conditions arechallenging”, said Mr Kamal Nath, Union Minister forUrban Development (now Union Minister for UrbanDevelopment & Parliamentary Affairs), India, presidingover the opening plenary. The Sustainable & InclusiveSolutions Summit & Exhibition was jointly inaugurated bySeekingSustainable &Inclusive SolutionsMr Kamal Nath, Mr Yeshey Zimba, Minister for Works andHuman Settlement, Bhutan, and Mr Erik Solheim, FormerMinister for Environment & Development, Norway.Mr Nath pointed out that “in the next ten years, morethan 600 million people will live in Indian cities. Morethan 53 cities have population of more one million andwill grow 60 times in these ten years. Also, 70% of newjobs will be created in and around cities.” All this, puttogether, is an incredible growth opportunity for India,but at the same time poses immense sustainability andinclusive development challenges. It calls for policyand urban infrastructure solutions that tackle severalurban challenges including sanitation, water, land use,ecological conservation, he declared.“Bhutan’s success with the Gross Happiness Index(GHI) provides a solution to measuring sustainabledevelopment beyond GDP. GHI has been recognisedby the UN, which has declared 20 March of everyyear as World Happiness Day. The key components ofPavan Sukhdev, Founder & CEO, GIST Advisory; Steen Riisgaard, President & CEO, Novozymes A/S; Yeshey Zimba, Minister for Works &Human Settlement, Bhutan; Kamal Nath, Union Minister for Urban Development (now Union Minister for Urban Development & ParliamentaryAffairs), India; Y C Deveshwar, Past President, CII, Chairman, CII - ITC Centre of Excellence for Sustainable Development, and Chairman, ITCLtd; and Chandrajit Banerjee, Director General, CII, at the Sustainability Summit in New DelhiCommuniqué November 2012 | 53

sustainable developmentGHI are economic equity, ecologicalconservation, and culture, thusmeasuring growth in a holistic manner,”said Mr Zimba.Mr Solheim noted that while theaverage human being is living insubstantial affluence, enjoying morepeace and security and longer lifethan ever, the number of peopleliving in poverty is also more thanever. While it may not be easy tocalculate the cost of services providedby nature, it shouldn’t mean that efforts to do so neverstart,” he said.Mr Steen Riisgaard, President & CEO, Novozymes,felt that inclusive growth and sustainable developmentpresent a huge business opportunity for emergingcountries like Brazil, China and India.Supporting the need to measure growth beyond GDP,Mr Pavan Sukhdev, Founder & CEO, GIST Advisory,advocated the economics of ecosystems and biodiversityas a useful tool.Earlier, in his opening remarks, Mr Y C Deveshwar, PastPresident, CII, Chairman, CII - ITC Centre of Excellencefor Sustainable Development, and Chairman, ITC Ltd,said, “The only way is to give up the old model andadopt the triple-bottom-line model. Measuring socialand environmental value is difficult because tools arestill being developed. But measuring sustainable valuecreation and not only shareholder or financial value isthe future of business.”In his concluding remarks, Mr Chandrajit Banerjee,Director General, CII, emphasized that CII is committed tosustainable development and works with all stakeholdersthrough its Centres of Excellence, including the Centreof Excellence for Sustainable Development.Addressing the Special Plenary on ‘Value Creation withGood Corporate Governance,’ on Day 2 of the Summit,Mr Veerappa Moily, then Union Minister of CorporateAffairs and Power (now Union Minister of Petroleum& Natural Gas) said “The days are not far off whenevery corporate body will come out and say sustainabledevelopment is good business.” He elaborated, “today,corporate governance is a strategic necessity, andresearch shows that companies which demonstrate goodgovernance practices are able to secure investmentsand talent.” Mr Moily said the current Companies Billis essential for an enlightened corporate governanceprocess and is expected to be introduced in Parliament.Bhaskar Chatterjee, Director General & CEO, Indian Institute of Corporate Affairs;M Veerappa Moily, Union Minister for Petroleum and Natural Gas (then Union Minister forCorporate Affairs & Power); and Y C DeveshwarThe Government has set up the Damodar Committee toremove procedural bottle-necks with the vision to makeIndia among the top five nations where doing businessis the easiest,” he said.Mr Bhaskar Chatterjee, Director General and CEO, IndianInstitute of Corporate Affairs (IICA), said value creationand corporate governance are intertwined, and form atriad when combined with sustainability. For this, valueand trust must go hand in hand. Merely creating valuemay not be of use if the company cannot share it withsociety, he felt.Mr Deveshwar expressed concern over the growinginequity that is compounded with environmentaldegradation and global warming. The main problemtoday is the way value has been traditionally defined,and is limited to the interests of only the consumers andshareholders, he said, pointing out that the top 10% ofthe global population owns 85% of the total householdassets, whereas the bottom 50% owns only 1%. Thispoints to the need for incentives for the corporatesector to unleash its power to create value in multipledimensions through enhancing social, economic andenvironmental capital, he added.The key issues deliberated at the Summit related toSustainable Agriculture; Innovation; Biotechnology;Sustainable Supply Chain; Corporate Governance;Environment and Climate Change; StakeholderEngagement; Sustainability Rating; Public Procurement;and Next Generation Infrastructure.Several companies and organizations showcased theirsustainability initiatives at the small exhibition whichwas set up with the Summit. The main exhibitorsincluded Vedanta Group, Ambuja Cements, ITC, TataSteel, Novozymes, Solaron Sustainability Services,Wipro, India Green Building Council, and the CII-Jubilant Bhartia Food and Agriculture Centre ofExcellence.54 | November 2012 Communiqué

visionary leaders for manufacturingtowards excellenceBuilding Competitiveness ofIndian ManufacturingJapan Visit for VLFM GraduatesVLFM Opportunity A, spearheaded by CII, arranges avisit to Japan for all Opportunity A participants everyyear, supported by the Japan International CooperationAgency (JICA), Tokyo, Government of Japan. Thevisit helps participants to learn from the Japanesemanufacturing system, see India from an ‘outsideinperspective,’ closely observe Japanese culture,understand the Japanese process-oriented society andalso do self-initiated research on pre-identified topics.This year, the Japan visitwas organized from 13-21 October, wherein 60participants of Batch 6 from28 companies visited variousJapanese companies such asToyota, Mazak, Sony Archive,etc. The participants appliedthe tools and techniqueslearned during the VLFMprogramme.From the Participants…VLFM Graduates at the Toyota company in JapanCertification ceremony for VLFM delegates in TokyoVSME ProgrammeBatch 3 of the Visionary Small and Medium Enterprise(VSME) programme has crossed another milestone. InOctober, 13 SMEs in Pune and 12 in Hosur establisheda win-win relationship with 7 customers representingTier ones of companies such as Tata Motors, Anand,Harita and the Sona Group.The programme, which aims to build up the IndianManufacturing sector by developing SMEs, held the firstVMap workshop session for13 Tier 2 companies in Puneon 9 and 10 October, and for12 Tier 2 companies in Hosuron 16 and 17 October.The main objective ofthe workshops was tounderstand the various flowsof material and information,delivery performance and‘It was indeed a once in a lifetime opportunity for me. We know that in the future, we will go a number oftimes to Japan for official work, but we will never be able to get such insights about Japan. I really thank CIIfor perfect coordination, Prof. Shiba for excellent guidance and mentoring, and JICA for perfect arrangements,which made this visit unforgettable.”Chandrashekhar Deshpande, Manufacturing Head - Common Rail Injectors Assembly, Bosch India Ltd.“I am very thankful to CII for preparing me for the Japan visit by timely reminders and clear guidance. I learnthow to plan precisely and develop clarity in communication. The Japan visit was a unique opportunity for me.We observed and learnt so many things which were unique to implement. Now I am trying to chalk out a planto share and implement all the learnings in Japan in my organization.”Sunil Agarkar, Deputy General Manager, Kirloskar Brothers Ltd.Communiqué November 2012 | 55

partnersoifcproduction performance to create a win-win relationbetween suppliers and customers. The workshop waspre-supplemented by a preparatory session for WorkplaceTransformation. The unique element of the workshop wasthe do-demonstrate of activities by Tier 1 participants toTier 2 participants, in which the T1 companies facilitatedthe scientific procedure of workplace transformation toachieve quick and visible results such as space createdon the shop-floor, reduction in the distance travelled bymaterial, machine and man, and identification of safetyparameters.All the participating Tier 2 companies identified areasof improvement and have implemented them withrespect to distance travelled, space created, and safetyparameters. One such T2 company, Vinsar Elastomer,a rubber automotive part manufacturer in Hosur, hascreated 100 sq ft of space and has shifted an inspectionoperation to the parent shop-floor from a remotelylocatedrented space.During this month, 7 Tier 1 companies also started theimplementation of Heijunka under the able guidanceof Mr Takeyuki Furuhashi. The workshop marked thestart of the implementation phase of creating a win-winsupply chain across and between tiers, by reducingthe fluctuation in the three flows that are associatedwith an organization i.e. delivery flow, production flowand procurement flow, by integrating them. The Tier1 companies will implement the Heijunka System intheir model line to understand the gaps in the presentsystem that are creating a mismatch between productionand customers’ demand, as well as production andrequests.India-Mauritius Business Round TableThe OverseasI n d i a nFacilitationC e n t r e ( O I F C )organized theI n d i a - M a u r i t i u sBusiness RoundTable in Mauritiuson 26 October, inassociation withthe Union Ministryof Overseas IndianAffairs, India, theHigh Commissionof India in Mauritius,and the Governmentof Mauritius. Over250 delegates fromMauritius and India attended the event.The Round Table was a unique platform to connect theIndian Diaspora, Mauritian citizens and citizens of othercountries to investment opportunities in India, Mauritiusand Africa. The two plenary sessions consisted ofinteractions over themes like how the Indian Diaspora canengage with India in various sectors and, Mauritius as aGateway to do business in Africa. These discussions andpresentations focused on the enormous opportunities forthe Indian Diaspora to engage with India in healthcare,financial services and banking, energy, education andmany more sectors.Inaugurating theBusiness RoundTable, Mr CaderS a y e d - H o s s e n ,Minister of Industry,C o m m e r c ea n d C o n s u m e rP r o t e c t i o n ,Mauritius, said “Wehighly welcome theIndia – MauritiusBusiness RoundTable. We hopethese businessinteractions will helpMauritius transit tothe next phase of itseconomic growth.We value the business acumen and expertise of Indianbusiness leaders who can help Mauritius develop hightechnology industries.”R. Raghuttama Rao, MD & CEO, Indian Credit Rating Agency (ICRA) ManagementConsulting Services Ltd (IMaCS); Deepak Sharma, Executive Vice President, KotakMahindra Bank Ltd; T.K. Manoj Kumar, Joint Secretary (DS), Union Ministry of OverseasIndian Affairs, India; Sayyad Abd-Al-Cader Sayed-Hossen, Minister of Industry, Commerce& Consumer Protection, Mauritius; Cedric de Speville, President, Mauritius Chamberof Commerce & Industry; and Prashant Pise, Deputy High Commissioner of India toMauritius, at the India-Mauritius Business Round Table, in MauritiusMr. Dev Chamroo, CEO, Enterprise Mauritius, urgedinvestors to see Mauritius not “as a landing strip but ratherlike a runway to take-off their businesses worldwide. Wewould like to create joint ventures with Indian partners toreach the wider African market,” he added.The meet provided a new dimension to the IndianMauritius business-relationship through the involvementand support of the Indian diaspora.Communiqué November 2012 | 57

ChandigarhYi ChandigarhTricity chaptercelebrated GandhiJayanti, alongwith Amity GlobalBusiness School,in a GovernmentPrimary Schoolon 1 October.Gandhi Jayanti celebrations at aThe programme Government Primary School in Chandigarhincluded a talkon Non Violence and Forgiveness, and various funactivities.On 8 October, Yi members, along with students ofAmity Global Business School, Chandigarh, visited anorphanage, ‘Bal Niketan’, to celebrate ‘Joy of GivingWeek.’ Bal Niketan serves as a home / learning centrefor girl children.An orientation session was held for the students ofAmity Global Business School on 12 October at theircampus.On 13 October,net students ofthe MillenniumSchool visited theYi ViVidha Centre,K a i m b w a l a , t ointeract with thekids at the learningcentre.Net students of the Millennium Schoolwith the kids of the Yi ViVidha Centre inKaimbwala, ChandigarhYi Chandigarh organized orientation sessions for thestudents of Taaleem College of International Studieson 15 October, and of University Institute of AppliedManagement Sciences, on 17 October at their respectivecampuses. The students of both colleges came togetherfor an interaction on 17 October.Mr Srikant Suryanarayan, National Vice Chairman, Yi,and MD, Tradelinks Group of Companies, visited the YiViVidha centre, in Kaimbwala, on 17 October. On thesame day, he also interacted with members and sharedhis experiences at a Members’ Meet.GoaYi Goa, in association with the Social Sports and CultureCentre, organized competitions on Bhajan-singing,Elocution, and Essay-writing to celebrate MahatmaGandhi’s 143rd birth anniversary, on 2 October. Around180 students from 12 schools participated in thecompetitions.Shripad Naik, Member of Parliament, with prize-winningstudents in GoaThe Chief Guest for the occasion was Mr Shripad Naik,Member of Parliament.Yi Goa, in association with the Rotaract Club of Mapusa,organised an inter-school drawing competition forschool students from North Goa on the theme of theEnvironment, titled ‘Chitrangan’ on 2 October. A totalof 106 students from various schools presented theirdrawing skills and original ideas at the event.Winners of the Inter-school Drawing Competition in GoaTo mark the ‘Joy of Giving Week,’ Yi members visitedSneha Mandir, a social and charitable trust in PondaJoy of Giving Week Celebrations at Sneha Mandir, in Ponda, Goa58 | November 2012 Communiqué

yiproviding succor to needy elders, and organized a lunchfor the 85 elders there on 6 October.Lt. Cmdr. Abhilash Tomy, who has embarked upon amaiden voyage, to solo circumnavigate the globe by seanon-stop, met Yi members aboard INS Mandovi, in VeremGoa on 10 October. This is the first attempt at non-stop solocircumnavigationof the globe by an Indian, and is beingattempted in a sailing vessel, 'Mhadei', built in Goa.Cmdr. Dilip Donde, the first and only Indian to havesolo circumnavigated the globe by sea, also on Mhadei,albeit with 4 stops, also interacted with Yi members. Yimembers had a chance to tour the Mhadei.Yi session aboard the Mhadei sailing boat, in GoaLt. Cmdr. Tomy would be away from land for 6 months atthe minimum without anyone to talk to or interact with.A Career Counseling Workshop was attended by 43students and faculty of Ideal High School, Taleigao Goaon 12 October. The workshop exposed the studentsto different career options to help them make the rightchoice for their future. The session also covered thesteps of career planning including self analysis, SWOT,RIASEC personality test, information gathering, etc.A two-day session on ‘Blue Ocean Dialogue’ wasconducted for 47 students of G. S. Amonkar VidyaMandir, Mapusa Goa, on 15-16 October.‘Blue Ocean’ is a term used for clean, pristine market spaces.These are areas in an industry where customers exist butthere are extremely limited or no competitors. Blue Oceansemerge from new needs, new consumer groups, changedhabits, new product development, etc. In the context of thisworkshop, Blue Ocean referred to ‘new ideas’ and innovationsthat challenge existing ways of doing things.The students also prepared and presented a workingmodel / flow chart / schematic to describe the innovationthey proposed.RaipurHariprasadGupta jiYi Raipur conducted a session on ‘VipassanaMeditation’ for around 100 participants on 1October. ‘Vipassana,’ which means to seethings as they really are, is a non-sectariantechnique to eradicate mental impurities forfull liberation. The session was conductedby Shri Hariprasad Guptaji, a prolific speaker who hasorganized more than 116 meditation camps.Communiqué November 2012 | 59

AfricaSouth Africa & UgandaCII Mission to South Africa and UgandaMr Pravin Gordhan, Minister of Finance, Republic ofSouth Africa, invited CII to participate in formulatingthe investment policy of the Republic of South Africa,during a meeting with Mr Adi Godrej, President, CII, andChairman, Godrej Group, in Pretoria on 18 October.Mr Adi Godrej led a CII CEOs Delegation to Ugandaand South Africa from 15-18 October. The delegationincluded CEOs from the Steel, Power, Automobiles,Water, Financial Services, Legal Services, Infrastructure,Mining and IT sectors.In Uganda, the delegation called on Mr Y KagutaMuseveni, President of Uganda, on 15 October. MrMuseveni spoke about the long and historical relationshipbetween India and his country, also the large numberof persons of Indian origin in Uganda. Inviting Indianindustry to participate strongly in the development ofUganda, he said the country’s food surplus economywith vast natural resources offers opportunity for valueaddition in Natural Resources, Agriculture, Infrastructure,Hydro Electricity, Renewable Energy, Herbal Medicinesand various other sectors. Mr Godrej assured thePresident that Indian Industry would look at Ugandawith more interest and explore collaborative investmentopportunities there.The Uganda National Chamber of Commerce & Industryorganized a Seminar and Business to Business Meetingon 16 October. The meeting was addressed by MsAmelia Kyambadde, Minister of Trade, Tourism &Industry; Mr Simon Dujaang, Minister of Energy, andMr Jachan Omach, Minister of State for Finance andPlanning, who presented investment opportunities intheir respective sectors.In South Africa, the CII delegation called on Mr PravinGordhan, Minister of Finance, and Mr Nhalnhla MusaNene, Deputy Minister of Finance. The Ministers spokeabout the overall economic situation in South Africaand invited Indian industry to participate in identifiedinfrastructure projects in South Africa.The CII delegation also called on Mr Marius LlewellynFransman, Deputy Minister of International Relations andCooperation. Appreciating the longstanding relationshipbetween India and South Africa, and the role played byIndians in the nation-building process in South Africa,the Minister called for stronger economic ties betweenIndia and South Africa.The delegates participated in meetings organized bythe Progressive Business Forum of African NationalCongress (PBF ANC) and Business Unity South Africa(BUSA). They were also briefed on opportunities inSouth Africa at a meeting held at the Gordon Institute ofBusiness Studies (GIBS) by experts from GIBS, WebberWentzel, First Rand and the Department of Trade andIndustry (DTI).Adi Godrej, President, CII, and Chairman, Godrej Group, and members of the CII CEOsDelegation to South Africa, in PretoriaY Kaguta Museveni, President of Uganda,with Adi Godrej, and members of the CII CEOsdelegation in Uganda60 | November 2012 Communiqué

eportAsiaChinaDelegation from PunjabZhang Limin, Director, Shanghai SME Coordination Office, withVikas Pratap, Secretary, Industries & Commerce, Punjab, in ShanghaiCII organized a luncheon interaction for a visitingdelegation from Punjab led by Mr Vikas Pratap,Secretary, Industries and Commerce, Punjab, with MrZhang Limin, Director, Shanghai SME CoordinationOffice, in Shanghai on 20 October. Mr Pratap describedthe economy and industry of Punjab and the newinvestment opportunities it offers to Chinese companiesespecially in infrastructure development, manufacturing,textiles, high tech etc.Mr Zhang recalled his firsthand feel of the developmenttaking place in India during his visit there last year.Noting that many Chinese companies are still not awareof the opportunities in India, he said such visits fromdifferent states of India will help bridge the informationgap between the two countries. Mr Sanjeev Bawa,Executive Director, Punjab Small Industries & ExportCorporation Ltd and Mr Zhou Lei, Vice President,Shanghai Kaikai Group, along with representativesof Punjab hand tool manufacturers, attended themeeting.Chery - JLR JVA proposed $1.89 billion automobile Joint Venture (JV)between China's Chery Auto and Jaguar Land Rover(JLR) has been approved by the National Developmentand Reform Commission of China. The JV's new plantin Changshu near Shanghai, scheduled to go intooperation in 2014, will be able to produce 130,000units a year, mostly Land Rover and Jaguar vehicles,but also JV brands. Sales of JLR cars reached 53,000units in China in the first nine months of the year, up80% from a year earlier.Yuan UpChina's yuan advanced to its highest value against theUS dollar in nearly 19 years on 29 October, to 6.2371 perUS dollar, pushed up by quantitative easing worldwideand optimistic signs for China's economy.FDI in ChinaChina exceeded the United States to become the world'slargest recipient of FDI in the first six months of 2012.During this period, China attracted $59.1 billion in FDIwhile the US attracted $57.4 billion.Chinese Investment in USAChina's direct investment in the United States reacheda record high of $6.3 billion in the first nine monthsof 2012, according to a report released by the NewYork-based Rhodium Group, which tracks Chineseinvestments.White Paper on Energy PolicyA White Paper, titled ‘China's Energy Policy 2012,’elaborates on the policies on energy development,conservation and the promotion of renewable powersources.White Paper on Judicial ReformThe Chinese Government has issued a White Paperon the reform of the country's judicial system. Judicialreform, an important part of China's political systemreform, is a long and arduous task. The White Papervows continuous efforts to establish a "just, effectiveand authoritative socialist judicial system with Chinesecharacteristics."Lenovo leads PC MarketChina's personal computer manufacturer Lenovo GroupLtd overtook the US-based Hewlett-Packard Corp in thethird quarter to become the largest seller of personalcomputers in the world measured by shipments,according to the IT research company, Gartner Inc.Lenovo made 15.7% of all PC shipments in Q3, whileHP made 15.5%.US Ruling on Solar Cells CondemnedChina’s Ministry of Commerce has voiced strongdissatisfaction with the United States' affirmativefinal determinations of Chinese crystalline siliconphotovoltaic cells, saying the decision "signalsprotectionism" and "hinders the development of newenergy." The comments came after the US CommerceCommuniqué November 2012 | 61

eportDepartment announced that Chinese producers andexporters have sold solar cells in the US marketat dumping margins. The department also set finalcountervailing duties on China-made cells. US importsof solar cells from China were estimated at $3.1billion in 2011.West-to-East Gas PipelineConstruction work on China's third pipeline to carrynatural gas from the nation's resource-rich westernregions to the energy-starved east has started. The7,378 km-long pipeline is expected to transmit 30billion cubic meters of gas annually and will cross10 provinces and autonomous regions, starting fromHorgos in Xinjiang and ending at Fuzhou, capital ofFujian. The $19.7 billion project is expected to becompleted before 2015.Myanmar-China Gas PipelineA bridge on the Lancang River, located in a border areabetween Baoshan and the Bai autonomous prefecture ofDali, in Yunnan Province, has been completed, markinga major step in the completion of a Myanmar-China gaspipeline project, which is expected to go into operationnext year. The bridge, a key part of the pipeline, wasa difficult engineering project. The oil pipeline has atransport capacity of 22 million tons per year, whilethe natural gas pipeline can transport 12 billion cubicmeters annually.Technical Support for US Nuclear ProjectChina is to provide technical support for the first timein the building of a third-generation nuclear powerplant in the United States. The State Nuclear PowerTechnology Corp Ltd has signed a technical supportservice contract with Shaw Power Group, related tothe building of the Vogtle AP1000 project in Georgia,the first new reactor approved by the US Governmentin nearly 30 years. The cooperation involves sendingChinese employees to the project over the next fouryears.Japan6th India-Japan Energy DialogueMr. Montek Singh Ahluwalia, Deputy Chairman, PlanningCommission of India, and Mr. Yukio Edano, Ministerof Economy, Trade and Industry, Japan, held the 6thmeeting of the India-Japan Energy Dialogue on 10October in Tokyo. Both sides agreed on key issuesrelating to energy security, energy conservation andrenewable energy.Pharma Tie-upTata Group promoted Advinus Pharma has entered intoa joint drug discovery deal with Japanese pharma giantTakeda Pharma. Advinus will receive guaranteed fundingof $36 million from Takeda to explore novel moleculesin inflammatory, central nervous system and metabolicdiseases. It will also receive milestone payments plusroyalties on product sales worldwide.$7 Billion Trade DeficitJapan registered a 558.6 billion yen (about $7 billion)trade deficit for September. Exports went down 10.3%from a year earlier while imports rose 4.1%.Industrial Output Falls, Outlook LoweredJapanese industrial production fell an unexpectedlylarge 4.1% in September from a month earlier, asign that the economy may be losing more steamthan expected amid the global slowdown. The fall isthe worst in recent years with the exception of theMarch 2011 earthquake and the Lehman shock in2008-2009.Holdings of US TreasuriesJapan added $5.3 billion to its holdings of US treasuresin August, taking them to $1.122 trillion. China's holdingsof US financial assets increased by $4.3 billion to $1.154trillion in August.Trade Suffers Amid Island DisputeNew trade data from Japan shows that the territorialdispute with China over a small group of islands is hittingthe economy. Since the spat over the sovereignty ofthe East China Sea islets flared up in early September,trade between China and Japan has shown signs ofweakening, stoking worries that a global slowdowncould be more severe than anticipated.According to Japan’s Finance Ministry, Japaneseexports to China were down 14.1% from a year earlierin September. Among the biggest falls was a 44.5%decline in exports of automobiles. The fallout hasweighed heaviest on Japanese brands highly visible toconsumers-for everything from lipstick to cars.New Economic Stimulus PlannedPrime Minister Yoshihiko Noda plans a new round ofeconomic stimulus by the end of November. The stepsare expected to include measures to curb deflation, easestrength in the yen, expand earthquake reconstructionwork and relax regulations on businesses. The Nikkeinewspaper said the Government was considering fundingthe new stimulus with 910 billion yen ($11.5 billion) set62 | November 2012 Communiqué

eportaside in the 2012 budget for economic emergenciesand the revitalization of regional economies.Bank of Japan Boosts StimulusThe Bank of Japan boosted its monetary stimulus forthe second month in a row on 30 October in responseto intense political pressure for action and mountingevidence that the Japanese economy is on the cuspof recession. In a well-flagged move, the central banktopped up its asset buying and lending programme,its main monetary easing tool, by 11 trillion yen ($138billion) to 91 trillion, broadly in line with what marketshad factored in. Stepping further into unorthodox territory,the bank also unveiled a plan to supply banks withcheap, long-term funds under a new scheme initiallysized around 15 trillion yen.Core CPI FallsJapan's core consumer price index in August fell 0.3%from a year before, dropping for the fourth straightmonth. Japanese retail sales rose 1.8% in August froma year earlier.Forex Reserves IncreaseJapan's foreign exchange reserves in end Septemberincreased by about $3.76 billion from a month before toabout $1.28 trillion, up for the third straight month.Bank Lending UpThe average daily balance of loans by Japanese banksincreased 1% from a year earlier to 459.65 trillion yen inSeptember, up for the 11th consecutive month. The risestemmed from strong demand related to reconstructionafter the March 2011 disasters.Bank Rates SteadyThe Bank of Japan has kept interest rates unchangedat zero to 0.1% and held off further easing measures,opting not to build on the boost to its asset-purchaseprogramme announced in September.Toyota Vehicle RecallToyota Motor Corp is recalling 7.4 million vehiclesworldwide due to potential fire risks. The recall in theUnited States involves 2.5 million vehicles, related to12 models.Japan Inc in MyanmarMyanmar has offered a deal to Japan to develop aSpecial Economic Zone (SEZ) at Thilawa, near Yangon.In a fast-track deal negotiated in less than a year, Japanwill provide at least $18 billion in aid, investment anddebt forgiveness from government and private sources.Japan will also provide up to $3.2 billion in new lendingto build another SEZ and deep-sea port in Dawei, insouthern Myanmar, to be developed into Southeast Asia'slargest industrial complex. The deals have made Japana major player overnight in the opening of Myanmar.The Japan-Myanmar Association was launched in March,while the Japan External Trade Organization (JETRO)opened the JETRO Business Support Center Yangonin Myanmar in September.Suzuki Plant in MyanmarJapanese automaker Suzuki Motor Corp. plans to builda factory in the Thilawa district of Yangon to produce20,000 to 30,000 cars a year and push developmentof one of the world's largest industrial complexes. Theassembly plant is tentatively scheduled for completionby 2015.Indonesia- Japan Plan for JakartaIndonesia and Japan have agreed on a master plan forthe construction of roads, railways, airports and otherstrategic infrastructure in Jakarta and its neighbouringcities. Forty-five projects with a total investment of $43billion, all expected to be completed by 2020, havebeen announced. Construction of 18 priority projectsis scheduled to start by end 2013.Republic of KoreaPolicy Rate CutThe Bank of Korea cut its benchmark interest rate by25 basis points (bps) to 2.75% on 11 October, to boostthe nation’s economy amidst a worsening economicoutlook.2012 Gowth Outlook SlashedThe Bank of Korea has slashed its 2012 economic growthoutlook for the country to 2.4% from an earlier estimateof 3%, citing the protracted European fiscal crisis andthe risk of fiscal cliff in the United States.Consumer Prices GrowSouth Korea's consumer prices index rose 2% inSeptember, the fastest in three months, mainly due toincreased prices of farm products.Anand Group Invests in MandoMando Corp., South Korea's second-largest auto partsmanufacturer, has attracted investment from India'sAnand Group.The latter will take over all new shares tobe issued by Mando India Steering Systems Pvt. Ltd.,Mando's wholly owned Indian unit that makes electricpower steering systems.Communiqué November 2012 | 63

eportSingaporeInteraction with Minister for EducationMr Heng Swee Keat, Minister for Education,Singapore, interacted with members of theCII India Business Forum (IBF) in Singaporeon 23 October.Mr Heng, who accompanied the Prime Minister ofSingapore on his recent visit to India, described thehighlights of the visit, such as the renewal of the airdefence agreement between the two countries, and thesigning of two agreements to facilitate the setting up ofa world class skills centre by the Institute of TechnicalEducation (ITE) in India. The Minister also spoke ofhis role in the 2005 CECA negotiations and how theeconomic relationship had strengthened since then,with many more Singaporean companies investing inIndia and the number of Indian companies in Singaporehaving more than doubled. Similar developments havetaken place in areas like tourism, and education, wherenearly 40 Singaporean schools are involved in exchangeprogrammes with Indian counterparts. Singapore hasalso played the role of a catalyst for a broader India-ASEAN relationship.Minister Heng spoke at length about the evolution ofSingapore’s education system, which is aligned closelyto the developmental needs of the country, recognizingthat human capital is the only natural resource Singaporehas, and the need to maintain the country’s multi-racial,EuropeFrancis Chong, Director-Emerging Markets Division, Ministry of Trade&Industry, Singapore; Dr TCA Raghavan, High Commissioner of Indiato Singapore; Heng Swee Keat, Minister of Education, Singapore,and Vish Iyer, Chairman, CII-IBF Singapore, and President - AsiaPacific, Tata Consultancy Services, at an interaction with CII-IBFmembers in Singaporemulti-cultural and multi-religious social fabric.The discussions centred around the infrastructuresector in India and the role Singapore and Indianbanks in Singapore could play. Singaporean and otherinvestments can be facilitated if the government createsa clear set of rules governing investments in this sector.Changing of policies midway and land acquisition issueswere cited as the biggest challenges to investments.Business-to-business networking and collaboration withspecific states/cities for specific areas could be a way ofpromoting greater cooperation, it was suggested.Mr Heng also touched upon the committee he chairs ofyounger ministers for reviewing Singapore’s economicand social policies. The objective is essentially tounderstand where Singaporeans want the country tobe in the next 20 years and the kind of society theywould like to see in the future.Interaction with delegation of Board Members from the Confederation of Norwegian Enterprise, in New DelhiNorwayInteractive session withConfederation of NorwegianEnterpriseCII organized an interactive sessionwith a 14 member delegation from theHeine Wang, President,Confederation of Norwegian Enterprise Confederation of NorwegianEnterprise, and Supriya Banerji,(NHO) for Indian industry, on 30Deputy Director General, CII,October in New Delhi. The delegation, signing a MoU in New Delhiof Board Members and senior executives of NHO,was led by Mr Heine Wang, President, NHO andCEO, Nokas.The session was also attended by MrEivind S. Homme, Ambassador of Norwayto India. Mr. V K Mathur, CMD, Inapex PvtLtd chaired the meeting, which featureddiscussion on investment opportunitiesin Infrastructure, Maritime Industry, FoodProcessing, Science & Technology, Banking& Financial Sector, Telecommunicationsand Tourism. Issues pertaining to marketaccess, visas etc, were also discussed.A Memorandum of Understanding was signed betweenCII and NHO to promote trade and investment relationsbetween India and Norway.64 | November 2012 Communiqué

eportLatin America and The CaribbeanMexicoInteraction with Delegation from MexicoMr Carlos Guzmán Bofill, CEO, ProMexico, the MexicanGovernment institution in charge of strengthening Mexico’sparticipation in the international economy, led a 20-membermulti sector business delegation to New Delhi. The objectiveof this visit was to strengthen the existing bilateral tradeand investment relation between Indiaand Mexico, and expand mutual tradeand investment co-operation between thecountries in areas such as Mining, Tourism,Food Processing, Infrastructure (projects inIndia), Automobiles and auto parts, SoftwareCarlos GuzmánBofill, CEO,ProMexicoand IT, Pharmaceuticals, Engineering,Renewable Energy, and Biotechnology.CII organized an exclusive meeting ofNorth AmericaCanadaSession on Energy SecurityJoe Oliver,Ministerof NaturalResources,CanadaCII organized an interactive session withthe Hon. Joe Oliver, Minister of NaturalResources, Canada, on 10 October inMumbai.The session, titled ’India’s energy security:Canada a Partner of Choice.’ saw extensivediscussions on various aspects of energyaccess, finance and sustainability. Mr RMukundan, Deputy Chairman, CII (WR)and MD, Tata ChemicalsLtd, in his welcome address, touchedupon ways to encourage trade, investmentand research cooperation between the twonations in oil and gas, non-conventionalgas, clean coal technologies, andrenewable sources including wind, solar,bio-fuels and hydropower. He encouragedusing available platforms such as theInter-Governmental S&T CooperationAgreement, and the Global Innovation andTechnology Alliance (GITA) to stimulateprivate sector investment in R&D.Mr Oliver stated that Canada enjoys astrong trade relationship with India andis well positioned to fulfill India’s rapidlysenior Indian industry representatives with Mr Bofill,followed by business to business meetings with thevisiting business delegation, in New Delhi on 29 and30 October.Mr Bofill made a detailed presentation titled ‘MexicoMeans Opportunity.’ Mr. Jaime Nualart, Ambassador ofMexico to India, and Mr. Amar Sinha, Joint Secretary,Commerce, Union Ministry of Commerce and IndustryIndia, also addressed the session, which was chairedby Mr. Sudhir Kapur, Member, CEO, Country StrategyBusiness Consultants.There is immense scope for business opportunitiesbetween the two countries. Mexican companies lookat India as an attractive market for their products. CIIfacilitated business to business meetings for the visitingdelegates with representatives of Indian industry to exploremarket for their products and possibly joint ventures.increasing need for energy, minerals, metals and woodproducts. He also reaffirmed Canada’s commitment tostrengthening trade, investment and scientific innovationwith India.United States of AmericaWashington-India Investment RoundtableCII, along with Tractus, hosted Ms Christine Gregoire,Governor of the State of Washington, at an interactivesession on 4 October in New Delhi. The session waschaired by Mr Deep Kapuria, Chairman, CII MSMECouncil, and Chairman, HiTech Gears Ltd.Christine Gregoire (centre right) Governor of Washington, at the CII Washington-IndiaInvestment Roundtable in New DelhiCommuniqué November 2012 | 65

eportChandrajit Banerjee, Director General,CII; Deepak Parekh, Chairman, HDFC; Timothy Geithner, Secretary, US Department of the Treasury;Ben Bernanke, Chairman, Federal Reserve Board; and Adi Godrej, President, CII, and Chairman, Godrej Group, at an interaction in MumbaiThe discussion encompassed opportunities for workingtogether in India’s massive infrastructure build-out andgreen technology for sustainability. India’s mountingpurchases in defence were noted, as was the needto tailor technological solutions based on India’srequirements, environment and market. GovernorGregoire highlighted Research and Development inaerospace and defence as a major area that couldbenefit from joint efforts in technology innovation andproduction. She also elaborated on Washington State’sstrength and India’s growing leadership in life sciencesto lead to breakthroughs in global health. A presentationon doing business in the State of Washington highlightedthe state’s strong education system and highly-skilledworkforce, excellent infrastructure, and expertise in R&D,specifically in hydro/thermal/wind power generation.CII also signed a Memorandum of Intent with theWashington State Department of Commerce forfacilitating direct foreign investment between India andthe state.CII-USIBC Investment RoadshowCII and USIBC co-organized an investment roadshowon 2 October in Washington DC for a delegationfrom Madhya Pradesh visiting the United States. MrShivraj Singh Chouhan, Chief Minister of MadhyaPradesh, who led the delegation,e m p h a s i z e d t h e i m m e n s einvestment opportunities inMadhya Pradesh, outlining sectorsincluding Automobile Engineering,Pharmaceuticals, ITeS, Tourism,Food Processing, Textiles andRenewable Energy. (The GlobalInventors' Summit was held inIndore, Madhya Pradesh, on28-30 October.)Ms. Diane Farrell, Executive VicePresident, USIBC, who moderatedthe session, observed that thereShivraj Singh Chouhan, Chief Minister of MadhyaPradesh, addressing a CII-USIBC business sessionin Washington DC, as Diane Farrel, Executive VicePresident and Senior Director, Policy Advocacy,USIBC, looks onwas growing recognition among both US and Indiangovernments as well as businesses to engage moreat the state-level. Such a proactive approach wouldgive a strong boost to the overall trade and investmentrelationship, she said. The delegation also visited Detroitand Chicago.Treasury Secretary Geithner Visits IndiaCoinciding with the 2012 US-India Economic andFinancial Partnership dialogue, CII organized interactivesessions for its members with Mr Timothy Geithner,Secretary, US Department of Treasury, in New Delhiand Mumbai.In New Delhi on 9 October, Secretary Geithner expressedoptimism about India’s growth story. “It is highly encouragingto see the current wave of economic reforms being initiatedby the Indian Government as they would help in restoringinvestor confidence, thus reviving growth too,” he said. Thesession was organized by CII in partnership with the USIndia Business Council (USIBC).Mr Geithner said that though India and USA havehistorically had a good economic relationship, itneeds to be further strengthened to face the currenteconomic challenges. The US, he said, has supportedG-20 initiatives for better financial regulation to tacklethe current global financial crisis. Mr. Kiran Karnik,Chairman, CII National Committeeon Telecom & Broadband, and MrSanjay Nayar, CEO, KKR IndiaAdvisors Pvt Ltd also spoke atthe session.On 10 October in Mumbai, CIIorganized a meeting with SecretaryGeithner and Mr. Ben Bernanke,Chairman, Federal ReserveBoard, and leaders of India'smajor multinational corporations.The discussions examinedways to deepen the bilateraleconomic engagement to expand66 | November 2012 Communiqué

eportopportunities for American andIndian businesses and workers;India's on-going reform process;and ways in which the twoeconomies can lower barriersto trade and investment tofacilitate growth and createjobs. Secretary Geithner alsodiscussed the important andgrowing contribution of Indianforeign direct investment in terms of job creation in theUnited States.The participants from Indian industry included Mr AdiGodrej, President, CII, and Chairman, the Godrej Group;Mr Deepak Parekh, Chairman, HDFC; Ms ChandaKochhar, MD and CEO, ICICI Bank; Mr Uday Kotak,Executive Vice Chairman and MD, Kotak Mahindra Bank;Mr Hari Bhartia, Past President, CII, and Co-Chairmanand MD, Jubilant Life Sciences; Mr Venu Srinivasan,Past President, CII, and CMD, TVS Motor Co; Mr RajivLall, Vice Chairman and MD, IDFC; Mr Ishaat Hussain,Director - Finance, Tata Sons, and Mr ChandrajitBanerjee, Director General, CII.CII India Business Forum MeetingAt a CII India Business Forum meeting on 25 Octoberin New York City, Mr. Dave Delie, CEO, Welspun TubularLLC, formally took over as Chairman for 2012-2013.The IBF member companies present at the meetingincluded Apollo Health Street, Exim Bank of India, ICICIBank, Infosys America, Larsen and Toubro, MindtreeConsulting, NIIT, Ranbaxy, State Bank of India andWockhardt USA.The members also had the opportunity to interact withMr Jack Markell, Governor of the State of Delaware, andChairman, National Governors Association. GovernorMarkell outlined the strengths of Delaware, especiallyin sectors such as financial services, pharmaceuticalsand biotech, as well as the geographical and laboradvantages which make the state an ideal investmentdestination. The Governor also expressed supportfor easing mobility of high-skill labor between Indiaand the US and the need for heightened attention inScience, Technology, Engineering and Math (STEM)education to ensure the competitiveness of theUS economy. Governor Markell will visit India inFebruary 2013 to bolster trade and investment betweenDelaware and India.The IBF members also met with representatives ofHudson County in the state of New Jersey to discuss thebusiness climate in the county, as well as a proposedJack Markell (centre), Governor of Delaware, with CII IBF members in New York Citybusiness and trade delegation from the county toIndia early next year. Present at the meeting were MsMaria Nieves, President, Hudson County Chamber ofCommerce, Mr Raj Mukherji, Deputy Mayor of JerseyCity, and representatives from Saint Peter's College,New Jersey.Corporate Sustainability and Climate ChangeCII and the World Resources Institute (WRI) jointlyorganized a discussion session on 31 October inWashington DC with Dr. Paul Brooks, Group Director –Environment, Tata Steel. Representatives from the USDepartment of Commerce, US Department of State,United Nations Foundation, WRI and the US-IndiaBusiness Council participated in the discussion, whichwas chaired by Mr. Manish Bapna, Executive VicePresident and MD, WRI.Dr. Brooks stressed that, along with climate change,resource efficiency remains a very significant challenge.Currently, climate change mitigation and resourceefficiency initiatives are often seen as adding cost orare driven through Corporate Social Responsibilityprogrammes. However, he explained that lifecycleanalysis of business value chains usually revealsbusiness opportunities with a real, commercial, case,that are value adding and cost saving. The Tata SonsGlobal Sustainability Steering Committee and TataSteel’s virtual academy bring together captains ofclimate change and sustainability from across the TataGroup of Companies in promoting thought leadershipand awareness about such initiatives.Kapil Sharma, General Manager – North America, Tata Sons;Dr. Paul Brooks, Group Director – Environment, Tata Steel, andManish Bapna, Executive Vice President and MD,World Resources InstituteCommuniqué November 2012 | 67

eportRussiaRussiaIndia-Russia Trade &Investment ForumCII, in partnership with theDepartment of Industrial Policyand Promotion, Union Ministry ofCommerce and Industry, India,and the Ministry for EconomicDevelopment, Russia, organisedthe 6th edition of the India RussiaTrade and Investment Forum on15 October in New Delhi.The Plenary Session was attendedby the Co-Chairs, Mr DmitryRogozin, Deputy Prime Ministerof the Russian Federation,and Head of the Russian side of the Russian-IndianIntergovernmental Commission on trade-economic,scientific-technical and cultural cooperation, and MrAnand Sharma, Union Minister for Commerce & Industry,and Textiles, India.The Forum, 6th in the series, brought together seniorgovernment officials, business community, scientificUnited KingdomAnand Sharma, Union Minister for Commerce, Industryand Textiles, India and co-Chair of the India-RussiaForum on Trade & Investment and Dmitry Rogozin,Deputy Prime Minister of the Russian Federation,at the Forum, in New Delhicommunity, academia and mediafrom both India and Russia. Theevent is held in India and Russiaon a rotation basis, with anaverage participation of over 400delegates. This year the focus wason developing and strengtheningpartnerships in three major prioritysectors: Modernization of Industryand Innovative Development,Energy and Energy Efficiency,and Medical Technologies andPharmacy. The three areasincluded industry verticals such asInformation and CommunicationTechnology (ICT), Pharmaceuticalsand Biotechnology, Aerospace,Engineering, Mining and processing of mineral ores andhydrocarbons, Power and Energy, Financial and BankingServices, Chemicals and Fertilizers, and Investment. TheForum also highlighted the investment potential andopportunities of sectors and special economic zonesof the Russian Federation, as well as strengtheningties with small and & medium-sized businesses of thetwo countries.Ranjan Mathai, Foreign Secretary of India, with the members of CII-India Business Forum in UK, in LondonMeeting with Foreign Secretary of IndiaThe CII India Business Forum-UK met with Mr RanjanMathai, Foreign Secretary of India, on 3 October inLondon. This was the first ever meeting of CII-IBF withthe Foreign Secretary. The meeting was held at theIndian High Commission in London and was attendedby over 40 CEOs of Indian companies based in theUK. The discussions, held under the Chatham Houserules, centered on India’s foreign policy and its effect onIndian businesses overseas. The meeting was chairedby Mr Anwar Hasan, Chairman, CII IBF-UK, and Director,Tata Ltd and hosted by Mr Rajesh Prasad, Deputy HighCommissioner of India to the UK.The CII India Business Forum is a group of CEOs ofIndian companies at their overseas operations. The grouprepresents Indian companies in the particular countryand works with the CII Secretariat to brand and promoteIndia overseas. The Forum is led and chaired by Industry,while the Indian High Commissioner/ Ambassador is thepatron of the Forum.68 | November 2012 Communiqué

EastBusiness Mission to Germany, France & UK15 – 19 OctoberRakesh Sood, Indian Ambassador to France, with the CII EasternRegion Business Delegation in ParisA CII Eastern Region business delegation visitedGermany, France and UK, to interact with local industryleaders, chambers of commerce, government officialsand diplomats in these countries. The Mission includeda MoU with the Chamber of Commerce and IndustryFrance India (CCIFI), a visit to the BMW headquartersin Munich, a meeting with the Renault top brass inParis, and meetings with Mr L N Mittal and Mr KaranBilimoria in London.JharkhandInauguration of Multi-Skill Gurukul16 October, JamshedpurArjun Munda, Chief Minister of Jharkhand inaugurating the CII -PARFI Multi Skill Gurukul in in Dhanachatani, near JamshedpurThe CII – PARFI Skill Gurukul was inaugurated inDhanachatani near Gorabandha, Jamshedpur, by MrArjun Munda, Chief Minister of Jharkhand.Mr Munda congratulated CII for establishing the secondGurukul in the state. Candidates from East Singhbhumand adjoining districts would receive training in thisGurukul.Soft Skills Development Module16 – 17 October, JamshedpurA two-day Soft Skills Development Module on ‘TeamManagement, Leadership & Time Management,’ helpedsupervisors, managers, senior managers, team leaders,general managers, HR managers, etc use these skilleffectively in their day-to-day corporate and personal lifein order to achieve personal and organizational goals.OdishaBusiness Mentoring Service31 October, BhubaneswarThe session facilitated the members by forming multipleforums for peer learning, each chaired by a veryexperienced coach mentor. Other services such asone-on-one coaching and business advisory serviceswere also available.West BengalSafety Symposium & Exposition4 – 5 October, KolkataThe flagshipsafety initiativeof the region,‘ S a f e t yS y m p o s i u m& Exposition’,a 2 - d a yC o n f e r e n c eR K Agrawal, Chairman, CII (ER), and Managing& Exhibition, Partner, S R Batliboi & Co; Janab Javed Ahmedhad the Khan, Minister of Fire & Emergency Services,Disaster Management & Civil Defence, Westcentral theme Bengal; and C Rajasekhar, Ambassador of Indiaof ‘Towards to Cuba, Haiti and Dominican Republic, at theSafety Symposium & Exposition in KolkataO p t i m i s i n gSafety for CSR& Sustainability’. The symposium, inaugurated by JanabJaved Ahmed Khan, Minister of Fire and EmergencyServices, Disaster Management and Civil Defence,Communiqué November 2012 | 69

egionsWest Bengal, deliberated on topics such as BehavioralSafety, Fire Safety, Workplace Stress Management,Mining Safety, and Personal Protective Equipment(PPE) etc.Mr C Rajasekhar, Ambassador of India to Cuba, Haitiand Dominican Republic; and Prof Ajoy Kumar Ray, ViceChancellor, Bengal Engineering & Science University,also addressed the gathering. A CII – Ernst & YoungReport on ‘Workplace Safety – The Way Forward’ wasunveiled at the forum. CII and BESU signed a MoU fora research project on Reducing Safety & Health Hazardsin Underground Mines.Brand Conclave 20125 October, KolkataIn the 11th edition of the Brand Conclave,the biggest brand management workshopin India, Mr David MeermanScott, the world’s foremostauthority on Social MediaMarketing, conducted a dayDavid Meermanlong Social Media MarketingScott,Marketing Guru, Masterclass. The theme of thein Kolkata Masterclass was ‘Engaging theConsumer in the Digital World.’ Mr Scott isa marketing strategist and bestselling authorof eight books on marketing, including threeinternational bestsellers. This edition of theBrand Conclave taught marketers how toharness the power of online marketing withreal-time marketing strategies.Sharing of Best Practices in TPM5 October, HaldiaThe seminar on ‘Best Practice Sharing on TPM’was addressed by Dr P Ulaganathan, CEO, HaldiaDevelopment Authority.Power of Innovation8 October, KolkataConference on Power of Innovation in KolkataThe Conference on ‘Power of Innovation’ had dedicateddeliberations on Product Innovation, Customer ServiceInnovation, Financing Innovation, Market Innovation,Sustainable Innovation, Process Innovation and HRInnovation. Mr Alapan Bandyopadhyay, PrincipalSecretary, Commerce & Industries, West Bengal, wasthe Chief Guest.Interactive Session on North Bengal12 October, SiliguriMr Gautam Deb, Minister of North Bengal Development,West Bengal, said the region is endowed with magnificentviews of the Himalayas, dense forests and wild lifesanctuaries. It also possesses huge potential for growthand development, he said.North Bengal Conclave12 – 13 October; SiliguriSudhir Deoras, Deputy Chairman, CII (ER) and MD, TRF Ltd; Abida Islam, DeputyHigh Commission, Bangladesh; Harshvardhan Neotia, MD, Bengal Ambuja HousingDevelopment Ltd; Gautam Deb, Minister of North Bengal Development, WestBengal; R K Agrawal, Chairman, CII (ER) and Managing Partner, S R Batliboi & Co;Dasho Tsering Wangda, Consul General, Royal Bhutanese Consulate; andDr R K Agarwal, Chairman, CII North Bengal Zone, and Director, SunriseNursing Home Pvt Ltd, at the North Bengal Conclave in SiliguriNorth Bengal has a strategic location with its neighboringstates like Sikkim, Assam, and Bihar, and sharesinternational boundaries with Nepal, Bhutan andBangladesh. It has witnessed substantial developmentin recent years. The State Government has also comeup with a specific agenda for improving the industrialprospects of the region by inviting investments andencouraging PPP framework.Mr Gautam Deb, Minister of North Bengal Development,West Bengal, inaugurated the North Bengal Conclave,organized by CII, in association with the Departmentof Tourism, West Bengal. Mr Dasho Tsering Wangda,Consul General, Royal Bhutanese Consulate; and MsAbida Islam, Bangladesh Deputy High Commission,also addressed the inaugural session. A CII Reporton Investment Opportunities in North Bengal, and anApproach Paper for a floriculture hub in Kalimpong andMirik were unveiled at the forum.70 | November 2012 Communiqué

egionsNorth EastStrengthening Economic Cooperation -Assam, Meghalaya & the Czech Republic9 – 11 October, Guwahati & ShillongTaking forward its agenda of linking the North Eastto the world, CII organized Business Seminars on‘Strengthening Economic Cooperation between the NorthEast and the CzechRepublic’ on theoccasion of the visitof Mr. Radek Braum,Deputy Minister ofAgriculture, CzechRepublic, to Guwahatiand Shillong, on 9 and11 October in thesecities respectively.M r B r a u m w a saccompanied by abusiness delegationwhich included tenleading Czech-based companies with interests infood and beverages, food processing, agriculturetechnology, and environmentally friendly small hydelprojects. Other members of the official delegationincluded Mr. Miloslav Stašek, Ambassador of the CzechRepublic to India, Mr. Jiří Janíček, First Secretary,Czech Embassy, and Mrs. Karolína Bartošová, Head ofTrade Policy, Ministry of Agriculture, Czech Republic.The visiting delegation had good interactions withtheir counterparts in Meghalaya and Assam. Thesewere followed by B2B discussions with organizationsfrom the region.Mr Radek Braum said that there were a lot of similaritiesbetween the Czech Republic and North East India. Heemphasized that there was ample scope for cooperationin terms of Joint Ventures and market aggregation.Mr Dipak Chakravarty, Chairman, CII Assam StateDipak Chakravarty, Chairman, CII Assam State Council, andMD, Numaligarh Refinery Ltd; Radek Braum, Deputy Minister ofAgriculture, Czech Republic; Miloslav Stašek, Ambassador of theCzech Republic to India, and Gopi K More, MD, Torsa Machines Ltd,at a Business Seminar in GuwahatiCouncil, and MD, Numaligarh Refinery Ltd welcomedthe mission as a concrete affirmation of the commitmentof the Czech Republic for long term cooperation withthe region.Northeast MSME Conclave16-17 October, GuwahatiRajesh Prasad, Commissioner, Industries, MD, Assam Industrial Development Corporation, Assam;Dipak Chakravarty; Pradyut Bordoloi, Minister of Industries, Commerce and Public Enterprise, Assam;Bulu Paul Muktieh, Chairman and MD, NEDFi and Rajnish Kumar, CGM SBI, at the NortheastMSME Conclave, in GuwahatiCII organized the North East MSME Conclave 2012 –‘Building Competitiveness for Leveraging Opportunities’to provide an impetus to industry in the North EasternRegion, which is dominated by Micro, Small and MediumEnterprises.The growth of the MSME sector is a prime focusfor the Government of Assam to drive economicgrowth” said Mr. Pradyut Bardoloi, Minister for Industry,Trade and Commerce, Assam, at the conference. Hesaid that downstream industries from the Assam gascracker project would provide immense opportunitiesto MSMEs to generate employment and propelgrowth.The MSME Sector accounts for about 45% ofmanufacturing output and constitutes 40% of thecountry’s total exports, spanning a wide variety ofproducts from handicrafts to sophisticated equipment.New markets have opened up, there has been a shiftfrom single management units to multiple vendor units,and several large industries now seek outsourcingoptions from MSMEs. However, the avail of theseexciting new business opportunities, MSMEs in theNorth Eastern Region must fill the knowledge gaps inareas such as better management of Human Resources,Quality and Productivity, and Cost Managementsystems, In addition, there is a need to improvemarket linkages by meeting the challenges posed bygeographical constraints and logistical limitations, asCommuniqué November 2012 | 71

egionsalso the availability of finance to meet both fixed andworking capital requirements.Mr Dipak Chakravarty, Chairman CII Assam StateCouncil, and MD, Numaligarh Refinery, described CII’smulti-pronged approach for the development of theMSME sector.Mr. B.P. Muktieh, CMD, North Eastern DevelopmentFinance Corporation Ltd (NEDFi) said a cell has beenset up to advise and guide entrepreneurs. NEDFi nowoffers loans at 8% to encourage local entrepreneurs,he added.Roads, Power and Credit are the prerequisites forindustry to grow, said Mr. Rajnish Kumar, Chief GeneralManager, State Bank of India. A dedicated branch forMSMES is one of the many initiatives undertaken bySBI to promote the sector, he said.Mr Rajesh Prasad, Commissioner, Industries, and MD,Assam Industrial Development Corporation, outlinedthe various schemes and initiatives undertaken by theGovernment for the growth of MSMEs.A handbook for entrepreneurs was released on theoccasion. A Bankers-Entrepreneurs Meet witnesseda lively discussion on issues of bank finance. Theconclave also focused on Quality, Productivity andCost Management, which are some of the criticalareas that need to be addressed to make the sectorcompetitive.Day 2 of the conference saw discussions on buildingindustry partnerships where large players could sourcerequirements from smaller players, as also on the rolemicro finance could play in supporting grass rootsentrepreneurs. Senior officials from companies suchas the Northeast Frontier Railways (NFR), NumaligarhRefinery Ltd, Indian Oil Corporation, etc, described theirprocurement policies for the MSME sector. The NFR,for example, procures 20% of its requirement of 6500items ranging from brooms and dusters, to loco sparesand electrical with a total worth of Rs. 1000 crore fromthe MSME sector. Further, to promote the MSME sector,NFR waives the earnest money, and no tender fees arerequired from these units.The Conclave concluded with a fruitful interaction onmicro finance chaired by Mr. K.N. Hazarika, former CMD,NEDFi. The main takeaway was a resolve to developa road map for micro finance in the region by creatinga corpus for a Research and Development and ImpactAnalysis Study, to define the optimal way to take theagenda forward.NorthSeminar on Affirmative Action17 October, Chandigarhfight social injustice towards SC / STs and bring theminto the mainstream.Edu Summit 201213 October, ChandigarhEdu Summit 2012, with the theme of ‘Taking HigherEducation in the Northern Region to the next orbit’brought together academicians, corporates, financers,educational consultants and students to deliberate onhow Higher Education can be made more affordable,job-oriented, accessible, and relevant to industryneeds. “Quality education is the key to inclusiveAwareness session on Affirmative Action Initiatives in theNorthern Region, in ChandigarhAn Awareness Session on Affirmative Action wasorganized for members to share and exchange bestpractices. Mr Hardip Singh Kingra, CMD, NationalScheduled Castes Finance & Development Corporation,appreciated the CII Agenda of Affirmative Action, whichhas also been incorporated in the corporate agenda ofits members, as a potent tool to eradicate inequality,Release of the CII – Wazir Knowledge Paper onHigher Education, in Chandigarh72 | November 2012 Communiqué

egionsgrowth and the empowerment of a large section of thepopulation,” emphasised Mr Dhanpat Singh, FinancialCommissioner and Principal Secretary, TechnicalEducation, Haryana.Power Reforms for the North12 October, ChandigarhCapt Ajay Singh Yadav, Minister for Power, Haryana;Sukhbir Singh Badal, Deputy Chief Minister of Punjab; andDebashish Mazumdar, Chairman, CII NR Committee on PowerReforms & Renewable Energy, and Director, Wartsila Power Plants,at the Conference on Power in Chandigarh“Punjab will be a power surplus state by 2013 andwould export power to other states and even toPakistan,” announced Mr Sukhbir Singh Badal, DeputyChief Minister of Punjab, at the conference on ‘24/7Electricity for All.’Capt Ajay Singh Yadav, Minister for Power, Haryana,shared that Haryana would soon be a power surplusstate as well, provided the fault in the Yamunanagarthermal plant is recovered and the Jhajjar thermal plantis commissioned. He was hopeful that both these plantswould be operational by the year- end.Mr Debashish Mazumdar, Chairman, CII NR Committeeon Power Reforms & Renewable Energy, and Director,Wartsila Power Plants, pointed out that most states inthe Northern Region have a higher per capita powerconsumption than the all-India average of 779 KWh.Therefore, these states also need to raise their ownpower producing capacities to suffice the gap, hesaid.School Excellence Conclave10 October, ChandigarhA cross section of stakeholders including schoolprincipals and teachers, representatives from theindustry and NGOs attended the ‘Conclave on SchoolExcellence.’“Imparting good quality education to all the childrenin the country is the biggest challenge India is facingtoday and to address this, we need good infrastructure,”said Mr Upkar Singh, DPI Schools, ChandigarhAdministration. He urged teachers to take the role ofpartners in learning to raise the standard of educationin the country.Thailand Trade Show26 – 30 September, ChandigarhThe Thailand TradeShow, organisedby CII (NR) andthe Department ofInternational TradePromotion, Ministryof Commerce, RoyalThai Government,was inaugurated byMr Anil Joshi, Ministerf or Industries &Commerce, Punjab,and Mr SoonthornC h a i y i n d e e p u m ,Minister, Royal Thai Embassy. B2B meetings betweenthe traders, manufacturers and distributors of the twocountries were also facilitated to take business ties toa higher level.ChandigarhCSR Summit28 September, ChandigarhAddressing the CSR Summit, Mr K K Sharma, Adviserto the Administrator, Chandigarh Administration, urgedGovernment, contractors, corporates and NGOs tobecome more sensitive to the plight of labourers,especially in the construction sector. Mr Sameer Goel,Chairman, CII Chandigarh Council, said that CorporateSocial Responsibility is very much a corporate agendaand no more a voluntary role. The corporate sector treatsit as an investment to organisational development.”Delhi25th Quality Circle Competition5 October, New DelhiQuality circles from Bharat Electronics Ltd, Tata MotorsLtd and Denso India bagged the top three positions inthe QC preliminaries. These teams will now participatein the Regional Final as a pre runner to the NationalCompetition.Banking & Finance Knowledge Series5 October, New DelhiAnil Joshi, Minister for Industries &Commerce, Punjab, andSoonthorn Chaiyindeepum, Minister,Royal Thai Embassy, inaugurating theThailand Trade Show in ChandigarhBanking & Finance Knowledge Series in New DelhiCommuniqué November 2012 | 73

egionsThe roundtable series is an effort by the CII Delhi StateCouncil to bring financial institutions and corporateson a common platform to build a healthy financialecosystem. The bankers shared their perspectives onadvancing credit and the challenges faced in today’seconomic scenario.MoU with French Organisations12 October, New DelhiCCII Northern Region,Nord France Investand CCI InternationalNord De Francesigned a MoU tostrengthen economica n d c o m m e r c i a lcooperation betweenIndia and NorthernFrance. The MoUwas signed by MrVirat Bhatia, Chairman, CII Delhi State Council, andPresident – IEA, South Asia, AT&T, and Mr Luc Doublet,President Nord France Invest, and CCI International NDF,to encourage co-operation between these organisationsand their member companies in investment, tradepromotion, technology and business co-operation.Jammu & KashmirInteraction with Dr M Veerappa Moily10 October, New DelhiVirat Bhatia, Chairman, CII Delhi StateCouncil, and President – IEA, SouthAsia, AT&T, and Luc Doublet, PresidentNord France Invest & CCI InternationalNDF, in New DelhiDr. M Veerappa Moily, Union Minister for Petroleum and NaturalGas (then Union Minister for Power and Corporate Affairs) with CIImembers in New DelhiA delegation led by Mr Waseem Trumboo, Chairman,CII J&K State Council, met Dr. M Veerappa Moily, UnionMinister of Union Minister for Petroleum and Natural Gas(then Union Minister for Power and Corporate Affairs).They urged the Minister to reopen the Registrar ofCompanies’ office in Srinagar and also requested waivingof the Minimum Alternative Tax which is to the tune of18 %, for industries of J&K, as a special case.Sustainable Water Management12 October, JammuMr Ramani Iyer, Vice Chairman, Forbes Marshall Ltd, sharedthat in India, between 2010 to 2050, the use of water inindustry would grow to 13% from the current 8 % and theper capita surface water availability would come down from2309 cu m in 1991 to 1235 cu meters in 2050.Empowering Investors Through Education19 October, SrinagarIn the workshop, Mr Harbinder Singh Sokhi, RegionalManager, Bombay Stock Exchange (BSE), highlightedthe importance of analyzing company performancebefore investing in the share market. He also explaineddifferent investment methods and planning for secureinvestments.Uttar PradeshBuilding Ties with USA5 October, LucknowRon Somers, President, USIBC; Kaushal Raj Sharma, Jt ExecutiveDirector, Udyog Bandhu, UP; Ajay Banga, Chairman, USIBC, andPresident & CEO, Master Card Worldwide; and Jayant Krishna,Co-Chairman, CII NR Special Task Force on Skills & Education andPrincipal Consultant & Head -TCS, at an interaction in LucknowMr Ajay Banga, Chairman, US – India Business Council(USIBC) and President & CEO, Master Card Worldwide, andMr Ron Somers, President, USIBC, interacted with CIImembers and senior bureaucrats in the state governmentto understand the general business and investment climatein Uttar Pradesh, and also gain perspectives on prospectsof collaboration for US companies.Industry Interface at Kanpur10 October, KanpurTo draw the attention of the Government to Kanpur,the Manchester of the East, CII organized an IndustryInterface and press conference to highlight policymeasures and recommendations to revive Kanpur.World Standards Day15 October, LucknowTo salute the voluntary work of all those visionaryexperts who bolster the governing dynamics behindstandardization, CII and Tata Motors celebrated WorldStandards Day with the theme of ‘Less waste, betterresults – Standards increase efficiency.’74 | November 2012 Communiqué

egionsWestern UPStudy Mission on Manufacturing8-9 October, BangaloreA study mission on ‘Practicing Quality for World ClassManufacturing' visited Bangalore to observe the excellentwork being done by companies there in developing andpracticing various best manufacturing practices acrossdifferent sectors.25th QC Competition12 October, NoidaThe Quality Circle from Napino Auto & Electronics LtdGurgaon was the winner at the 25th Quality CircleWestern UP Zonal Preliminary Competition 2012 –2013, while teams from Denso India Ltd., and BharatElectronics Ltd. Kotdwara, were the runners-up.Interactive Session on Service Tax18 October, NoidaA half day interactive session on ‘Service Tax – NegativeList & Recent Changes’ apprised members of the recentchanges in Service Tax regulations.UttarakhandUkhimath Relief Initiative2 - 3 October, UkhimathThe CII Uttarakhand State Council team undertookdistribution of relief material to more than 150 familiesSouthProgramme for Trade Union Leaders3-4 October, Chennaifrom Premnagar,Chunni, Mangoli,K i m a n a ,Bhramankohli,Bedula, Giriya,Gandhinagar,Salami andDunger Semla.The relief workDr Aziz Qureshi, Governor of Uttarakhand,flagging off the relief material in Ukimathwas carried out in consultation with and with the activesupport of the District Administration and the BharatSewa Ashram.CII Uttarakhand – Tata Motors Cricket Cup21 October, DehradunThe grand finale ofthe CII UttarakhandTata MotorsCricket Cup sawMinda Corporationemerge as thewinner of thetournament and ITCas the runner up.Mr Dinesh Agrawal,Winning team from Minda at the CIIMinister, Sports, Uttarakhand - Tata Motors Cricket Cupin DehradunUttarakhand, andMr Ajay Kumar Pradhyot, Secretary, Sports, Uttarakhand,were present on the occasion.cities with Mr Zoran Stavreski, Deputy Prime Minister andMinister of Finance, Republic of Macedonia, to exploreemerging opportunities in sectors such as Agriculture,Automotive Components, Chemicals, Construction,Energy, Healthcare, ICT, Metal, Mineral Resources, Textile,Session with Trade Union leaders in ChennaiThe programme was held to develop leadership qualitiesin internal Trade Union leaders. Mr Mohan Pyare,Principal Secretary- Labour, Tamil Nadu, addressed theparticipants.Interactive Sessions on Macedonia3, 4, 8,9 October, Thiruvananthapuram, Hyderabad,Bangalore, ChennaiA series of interactive sessions were held in differentViktor Mizo, General Director, SEZs, Macedonia; Bill Pavleski,Minister of FDI, Macedonia; Zoran Stavreski, Deputy Prime Ministerand Minister of Finance, Macedonia; and S Chandramohan,Chairman, Task Force on Economic Affairs and Governance, CII (SR)and President and Group CFO, TAFE Ltd, at an interaction in ChennaiCommuniqué November 2012 | 75

egionsMariana Meirelles, Vice President, Brazilian Business Council for Sustainable Development; Masatoshi Sato, Chairman, Sompo Japan Insurance Inc,and Chairman, Keidanren Committee on Nature Conservation, Japan; Pavan Sukhdev, Founder CEO, GIST Advisory; Jayanthi Natarajan, UnionMinister of State (IC), of Environment & Forests, India; Bomo Edith Edna Molewa, Minister of Water and Environment Affairs, South Africa;Nik Senapati, MD, Rio Tinto India; Anil Kumar V Epur, Past Chairman, CII-SR; and James Griffiths, MD, Ecosystems, & Sustainable ForestProducts Industry, World Business Council for Sustainable Development; at the COP 11 conference in HyderabadTourism, and Trading. Mr Zoran Stavreski, Deputy PrimeMinister and Minister of Finance, Mr Bill Pavleski, Ministerof FDI, and Mr Viktor Mizo, General Director, SEZs,Republic of Macedonia addressed the sessions.Andhra PradeshInteractive Session on Service Tax11 October, HyderabadMr. Sashi Bhushan Singh, Chief Commissioner, Customs,Central Excise and Service Tax, Hyderabad, as well asthe zonal commissioners, clarified various issues relatingto Customs, Central Excise and Service Tax raised byindustry members.Special Event at COP 11 Conference16,17 October, HyderabadMeeting on Business & Biodiversity atCOP-11 Conference18 October, HyderabadThe Breakfast Meeting discussed the elements of theCOP 11 draft business decision and put these elementsinto context. Ms. Jayanthi Natarajan, Union Minister ofState (Independent Charge), Environment and Forests,and Ms. Bomo Edith Edna Molewa, Minister of Waterand Environment Affairs, South Africa, were the keyspeakers.Workshop on Project Management19 October, HyderabadThe workshop helped the participants understand theneed for sound project management and skillfully manageprojects, large or small. It touched upon managing theentire lifecycle of a project: how it is initiated, planned,executed, monitored, controlled and closed.KarnatakaIndustrial Relations during Business Volatility27 September, BangaloreSpecial session at the Convention on Biological Diversity in HyderabadCII, in association with the World Bank and GTI,organized a special event at the COP 11 – Conferenceon Biodiversity, on ‘How Wildlife Conservation can makeBusiness Sense’ to strengthen business involvementand provide industry’s stewardship in wildlife andbiodiversity conservation. CII has entered into a MoUwith the World Bank and the International FinanceCorporation for setting up the Indian Wildlife BusinessCouncil (IWBC).Interaction with Affiliated Associations17 October, HyderabadThe interactive meeting with affiliated associations briefedmembers on CII initiatives, especially with regard to theindustry policy related issues. The power issue wasdiscussed widely.Conference on ‘Industrial Relations during Business Volatility’ in BangaloreWith the Indian economy open to global events, thevolatility in the business environment has affected all thestakeholders in the economic structure of this country.A CII conference discussed ‘Industrial Relations duringBusiness Volatility.’Competency Modeling16 October, BangaloreCompetency modeling has become increasingly popularas a method for understanding the attributes neededto be successful in the workplace because it ties thespecification of job requirements to descriptions oforganization strategy.76 | November 2012 Communiqué

egionsPuducherry5S & Workplace Management19 October, PuducherryGood work place management is fundamental toimprovement and growth. All leading manufacturingexcellence activities like Six Sigma, Lean Manufacturing,TPM, etc, have 5 S as their basic activity. In addition,a neatly kept work place reduces accidents,eliminates wastage and brings down absenteeism,thereby pulling down the costs significantly.CoimbatoreHR Conclave12 October, CoimbatoreThe Conclave discussed the challenges in present dayIndustrial Relations in different manufacturing belts ofthe region and devised recommendations to evolve anintegrated HR & IR policy for the country. Mr MohanPyare, Principal Secretary – Labour& Employment, TamilNadu, addressed the Conclave.Solar Thermal-based Applications13 October, CoimbatoreCII Coimbatore Zone and Pricewaterhouse Coopers (PwC),with the Union Ministry of New & Renewable Energy, andwith support from the United Nations Industrial DevelopmentOrganization (UNIDO), organized a workshop on Promotionof Solar Thermal based Industrial & Commercial ProcessApplications in India, to understand the needs of theend users and the barriers and risks perceived by themin technology integration and implementation. Mr MarkDraeck, Industrial Development Officer, Renewable Energy& Climate Change Branch, UNIDO, and Mr S K Singh,Director, Solar Energy Centre, Union Ministry of New andRenewable Energy, were the key speakers.First Responder Workshop19 October, CoimbatoreThe workshop focused on three topics: AbdominalEmergencies, Industrial Accidents & EmergencyTransportation, and Handling Difference Types ofPoisoning.ErodeRecent Trends in Business Strategy10 October, ErodeThe session was organized on the concept of Blue OceanStrategy which believes in generating high growth andprofits in organizations by creating new demand in anuncontested market space.Micro-level Job Fair13 October, ErodeCII, jointly with theTamil Nadu SkillDevelopment Missionorganized a microleveljob fair for job Micro-level Job Fair in Erodeseekers in privatecompanies. More than 40 employers participated inthe fair.Family Business Sensitization Session16 October, ErodeThe session guidedf a m i l y b u s i n e s sowners and theirsuccessors throughthe strategic businessand family issuesthey need to identifyand confront in theFamily Business Sensitization Sessionin Erodeprocess of developing and implementing businessstrategy.MaduraiMEDex 201220, 21 October,MaduraiThe MEDex 2012conference cumexhibition wasinaugurated by MrSellur Raju, Ministerfor Co-operation,Tamil Nadu, in thepresence of Mr.Anshul Mishra, Collector, Madurai District.At MEDex 2012 in MaduraiTrichyParenting Adolescents20 October, TrichyThe session discussed the handling of adolescentchildren with necessary care.SalemIndustry – Institute Interaction5 October, SalemThe Industry – Institute interaction with Dr S RameshBabu, Associate Vice President, Infosys Ltd facilitatedthe knowledge of industry to students.Communiqué November 2012 | 77

egionsThoothukudiCEO Connect Session8 October, ThoothukudiIn a CEO Connect Session, Mr RG Chandramogan,CMD, Hatsun Agro Products Pvt Ltd, shared his viewsand thoughts on industrial development with differentstakeholders.HR & Quality Mission26 September, ChennaiHR & Quality Mission teamThe mission to Carborundum Universal Ltd & WheelsWestGujaratVisit to Pipavav Port6 October, PipavavThe objective of the visit was to understand the customsclearance procedures, practices of logistics operationsand facilities available at Pipavav Port, and discuss keyissues related to it.Interactive Session on Australia9 October, VadodaraPatrick Kearins, Consul Commercial & Trade Commissioner, WesternIndia, Australian Trade Commission, addressing CII members inVadodaraAn interactive meet with Mr Patrick Kearins, ConsulCommercial & Trade Commissioner, Western India,Australian Trade Commission, gave a brief overviewof investment and trade opportunities with Australia,India Ltd facilitated the learning of the best HRPractices and quality standards followed in bothcompanies.VisakhapatnamLeadership & Team Building16 October, KakinadaThe workshop stressed the importance of Leadershipand Team Building in today’s corporate world.Michael Carter,Consul -Commercial& TradeCommissionerfor South India,Australian TradeCommissionTrade with Australia18 October, VisakhapatnamThe interactive session with Mr MichaelCarter, Consul – Commercial and TradeCommissioner for South India, AustralianTrade Commission, discussed bilateraltrade and the scope for cooperationin sectors such as Education, Mining,Infrastructure, Technology Transfer,Innovation, Agro processing and Tourismbetween India and Australia.and explored ways to do business with Australiancompanies.Kaizen Competition16 October, VadodaraS i x t e e n t e a m sparticipated in thefirst Gujarat KaizenC o m p e t i t i o n . T h ewinning teams werefrom L&T MHI Boilers,FAG Bearings IndiaLtd., and Madhav AgroFoods Pvt. Ltd.Kaizen Competition winning teamfrom L & T MHI Boilers Ltd., inVadodaraCII ‘Connect’ Lecture Series17 October, RajkotCaptain (Retd) Jaidev Joshi, who has been awardedthe prestigious Chief of Army Staff’s CommendationCard, delivered highly inspiring views based on real lifeexperiences on professional practices and entrepreneurialabilities.Finance for Non-Finance Executives18 October, VadodaraThe in-house workshop oriented HR executives with thebasics of finance, such as audit, balance sheet, profitand loss statement, etc.Communiqué November 2012 | 79

egionsInteractive Meet19 October, BhavnagarThe interaction discussed the development and growthof industries in Gujarat and how CII can play a strongrole to achieve the vision for the state.Gujarati Workshop25 October, VadodaraThe workshop discussed ‘Effective Communicationthrough Team Building’ in the vernacular Gujaratilanguage. The programme helped participants recognizecommunication as a two-way process and identify thecharacteristics of effective communication.Mentor Program for Women Entrepreneurs25-27 October, VadodaraThe workshop made 25 rural SC /ST womenentrepreneurs aware about the Food (Pickle) ProcessingIndustry and trained them in the areas of standardization,packaging, preserving, costing and budgeting. Thementor programme was organized with the support ofMadhav Agro Foods Pvt. Ltd.Hospital Tech & Health & Hospital Conclave27-28 October, AhmedabadThe 2nd edition of ‘Hospital Tech 2012’ – a twodayexhibition on medical equipments and hospitalinfrastructure was organized concurrently with the HealthInteractive Meet in Bhavnagar& Hospital Conclave. The discussions at the two-dayevent, revolved around the main theme of ‘Opportunities& Challenges for Healthcare Sector.’The event was supported by various industry associationssuch as the National Accreditation Board for Hospitals& Healthcare Providers, the Indian Hospital Association– Vadodra Chapter, the Indian Association for MedicalInformatics, and the Ahmedabad Medical Association.The exhibition on medical equipment and hospitalinfrastructure, ‘Hospital Tech 2012,’ drew participationfrom 70 companies. Two workshops on ‘Methodologybehind Cleaning & Hygiene’ and ‘Cloud in Healthcare’were also organized.Doing Business with Australia30 October, AhmedabadMr Howard Ronaldson, Secretary, Department ofBusiness and Innovation, State Government of Victoria,Australia, on a visit to India, discussed opportunitiesemerging from the growing partnership between Indiaand Australia.Madhya PradeshRoadshow on Public Healthcare1 October, TrivandrumCII organized a road show for the Public Healthcare &Family Welfare Department, to promote its new policy,benefits and opportunities in investment in Madhya Pradeshin the Healthcare and Pharmaceuticals sector. Mr PravirKrishan, Principal Secretary, Public Healthcare & FamilyWelfare, and Dr M Geetha, Controller Food and DrugDepartment, Madhya Pradesh, interacted with investorsin the road shows organised at different cities.Inauguration of Hospital Tech 2012 in AhmedabadRoadshows for Warehousing & Logistics9, 11, 12, 21, 22 October, Bhopal, New Delhi, Mumbai,Lucknow, and KanpurCII organized a series of road shows for the MPWarehousing Logistics Corporation to promoteopportunities in investment in Madhya Pradesh in theWarehousing and Logistics sector. Mr Paras ChandraJain, Minister for Food, Civil Supplies & ConsumerProtection; Mr Antony De Sa, Additional Chief Secretary,80 | November 2012 Communiqué

egionsFood Civil Supplies & Consumer Protection; and Mr S SShukla, MD, WLC, interacted with investors in the roadshows in different cities.Sectoral Seminars29 - 30 October, IndoreOn the side-lines of the Global Investors Summit2012, a series of knowledge forums in the form ofseminars were organised, focusing on key growthsectors of the State. CII arranged sectoral seminarsfor the departments of Healthcare & Pharmaceuticals,Automobile & Engineering, Agribusiness & FoodProcessing, Urban Development, New & RenewableEnergy, Textile & Apparels, Warehousing & Logistics,Tourism & Hospitality, and Technical Education & SkillDevelopment.MaharashtraProgramme for Trade Union Leaders6 October, MumbaiThe leadership programme was designed for TUleaders to create a better working environment andcommunication between employees and management,to build a more profitable business. Eminent and seniorHR leaders across verticals discussed about practicalapplications of best practices, and how to adapt themto the changing work culture and emerging practices.CFO Meet 20129 October, PuneCFO Meet in PuneThe CFO Meet 2012, on ‘Expanding Horizons in TurbulentTimes’ looked at the new role of the CFO in managingrisk in today’s increasingly integrated and evolvingeconomic environment.Roadshow on Credible Chhattisgarh10 October, MumbaiChhattisgarh is looking to actively promote overallindustrial development with specific focus on sectorssuch as Minor Forest Products, IT & ITeS, Agro & FoodPprocessing, Automotive & Engineering, Biotechnology& Pharmaceuticals, Tourism & Healthcare, UrbanConference on Waste Management in MumbaiInfrastructure, Handicrafts and New & Renewable Energy.A high level government delegation led by Dr RamanSingh, Chief Minister of Chhattisgarh, and other seniordecision-makers from the concerned departments,visited Mumbai to discuss mutual areas of interestand partnership. CII Maharashtra facilitated industryparticipation for the session in Mumbai.Waste Management11 October, MumbaiThe conference created awareness about the latesttechnologies and developments in Waste Managementand key environmental and health challenges. It alsofacilitated the exploration of new business opportunitiesin green companies, e-waste management and solidwaste management, etc. Experts from India’s leadingorganizations shared their rich experience, expertiseand best practices at this Conference.Roundtable on Strategy16 October, MumbaiDr Thomas Nagle,S e n i o r P a r t n e rEmeritus and SeniorAdvisor with theMonitor Group, aninternational strategyconsultancy, is anDr Siddhartha Roy, Economic Advisor,expert on B2B pricing Tata Group, and Dr Thomas Nagle,Senior Partner Emeritus and Seniorand the author of theAdvisor, Monitor Group, at aclassic book, ‘Theroundtable in MumbaiStrategy and Tacticsof Pricing’. The discussions at this exclusive breakfastsession centered around the approaches to marginexpansion, including pricing strategy, of significantinterest to Indian businesses.Affirmative Action Initiative16 October, PuneCII, in association with Forbes Marshall Pvt Ltd, launchedCommuniqué November 2012 | 81

egionsan instrumentation course for a batch of 25 engineers.The 12 week programme is a 5 days a week full daycourse for technical training in Instrumentation andControl. Joint Certification by CII and Forbes MarshallPvt Ltd will be given to the students.25th QC Circle Competition18 October, Kolhapurrollout in Maharashtra and pan-India.Mr Banthia, while complimenting CII and Tata Motors fortheir initiatives in skill development, pointed out that the‘unemployability’ market is larger than the employabilityone. Thus students need value-additions to the traditionaldiploma courses taught by ITIs.FM India 201219 - 21 October, PuneQC Circle Competition winning team from Godrej Industries Ltd,in MumbaiThe 25th QC Circle State Level Competition attractedparticipation from 28 teams from different zones. Thetop three teams were from Godrej Industries Ltd,Mumbai, Minda Industries Ltd, Pune, and Tata MotorsLtd, CVBU, Pune.Interaction with Chief Secretary, Maharashtra19 October, PuneThe interactive session with Mr Jayant Kumar Banthia,Chief Secretary, Maharashtra, was organised to unveilthe Maharashtra State Skill Development Society’sstakeholders web portal, and also to update himon the CII-Yi ITI Finishing School e-learning moduleInauguration of FM India in PuneFM India 2012, an exhibition-cum-conference on FacilityManagement, had the theme of ‘New Dimension in FacilityManagement.’ The event was supported by the PimpriChinchwad Municipal Corporation, as well as the IndianPest Control Association, Indian Plumbing Association,National Solid Waste Association of India, and the SolarEnergy Society of India. The Exhibition and Summit wasinaugurated by Mr A S Sawant, Joint Commissioner,Pimpri Chinchwad Municipal Corporation.The event targeted the Facility Management Services inIndia, which is gaining huge importance in the effectivefunctioning of businesses today.Jayant Kumar Banthia, Chief Secretary, Maharashtra; Anadi Sinha, General Manager – HR, Tata Motors Ltd; Vijay Kumar Gautam,Commissioner - Employment, Self-Employment & Skill Development, Maharashtra; and Pradeep Bhargava, Chairman, CII Western Region, andDirector, Cummins Generator Technologies Pvt Ltd, at an interaction in Mumbai82 | November 2012 Communiqué

eviewRetracing the Path to ProsperityLessons from India – China Business PartnershipThe book tells stories of companies as diverseas Infosys, Mahindra, Dr Reddy’s Labs, UnitedPhosphorus, Sterlite and Adani Power, amongst others.These stories reveal that there is no one formula whichcan predict how a company can establish a strongpresence outside its home market. But collectively, theyshow that, for the two large Asian economies whichare on the threshold of regaining their pre-eminentposition in the world economy, there is no other optionbut to understand the opportunities that the 21st centurypresents, and make the most of them.Retracing the Path to ProsperityEmbassy of India, Beijing Confederation of Indian IndustryRetracing the Pathto ProsperityLessons from India - ChinaBusiness PartnershipBeing in China provides Indian companiesnot only a platform for growth in the world'ssecond-largest economy, but internationalexperience that can be parlayed into opportunitiesin markets around the world. And for the Chinesecities, provinces and regions that are the focus ofinvestment by Indian companies, their presence bringsemployment, economic growth, and a commitment tothe communities and people with which they interact.These companies and investors are helping to build upa strong sense of ‘Brand India’ in China, showing thatIndian companies and people are valuable businesspartners. In industries ranging from raw materials andheavy industry through information technology andconsulting, nearly 200 Indian companies are alreadyparticipating in China's remarkable growth story,recognizing that their presence in the country is integralto their global success. This publication distills theirexperience and draws valuable lessons for economiccooperation.Leading the Innovation ChargeAs China gradually tries to move away frominvestment-driven growth and an export model basedon low-cost manufacturing, innovation is playing anincreasingly crucial role in the country's next stage ofdevelopment. In the 12th Five-Year Plan, which runsthrough 2015, Beijing has put a priority on advancedindustries including IT, new energy, biotechnology,and energy conservation.China has also set specific goals for innovation,including a target of 3.3 patents per 10,000 people.Government investment in key areas including scientificresearch, IT and environmental protection is likely to totalseveral billion dollars over the five years, according toindustry estimates. The plan is designed to move thecountry up the value chain in manufacturing, while alsoestablishing it as a centre of innovation and cuttingedgecompanies.Like any top-down plan, however, the key is in theimplementation. Governments can help fund and createenvironments conducive to innovative activity, butultimately innovation is up to the innovators themselves,be they from China or overseas. Indian companiespresent in China are finding that they have a strong roleCommuniqué November 2012 | 83

eviewto play in this process, as they bring their technologyand managerial and technical expertise to the country,boosting their own innovative capabilities — and China’sas well.Conquering Global MarketsChina's strengths in manufacturing are well known,and not just with the relatively low value-addedproducts that helped to establish it as an exportpowerhouse. Advanced processes and techniqueshave convincingly changed the concept of ‘Made inChina,’ putting the country at the forefront of hightechmanufacturing.Chinese manufacturing is particularly attractive toIndian firms, which may not always have a sufficientlystrong manufacturing capability in India. Major Indiancompanies cite the advantages of manufacturing inChina in providing Indian firms the perspective ofoperating on a larger scale and with larger volumes,as their executives note that economies of scale inChina, together with significant standardisation andrepetitive skills, give rise to operational efficienciesthat ultimately lower the cost of production, evenat the high end. The result is stronger globalcompetitiveness.Grooming World-class ManagersThe strength of a company ultimately lies in its people.As such, successful long-term development in Chinais largely dependent on finding the team who willlead the company to success. And local Chinese areincreasingly considering Indian companies an attractiveplace to work in.Hiring locally brings benefits in terms of local marketknowledge and understanding, as well as helpingto convey a message of commitment to the localmarket. But, despite its population of over 1.3 billion,the battle for talent in China is fierce. With over200,000 Chinese completing tertiary studies abroadand returning to China to pursue their career, thesituation is improving somewhat, but the demandfor high caliber graduates still far outweighs supply.Finding effective ways to attract and retain talentedemployees remains a common concern for manycompanies operating in China.India offers a deep pool of managerial and technicaltalent, as well as a strong entrepreneurial tradition.This forms a key competitive strength of Indiancompanies, who are able to bring this knowledgeand experience to China and leverage it to establishan equally valuable talent pool here.Boosting the Local EconomyFor years, 8% has been China's official target fornational economic growth, and for years, it hassurpassed that figure. It is only recently that China'sleaders have set lower targets in the hope thatbreakneck speeds might be replaced with moresustainable levels of growth.Talk of a slowdown might raise doubts among potentialinvestors into China—but the reality is that a new,lower target of 7.5% growth still represents a significantexpansion. Lower growth rates also indicate that theChinese economy may be moving into a new, moredeveloped phase, in which heavy government investmentplays a lesser role, and in which domestic consumptionbecomes increasingly important. While headline growthfigures may be lower, the end result should be a healthier,more balanced economy, with benefits for Chinesepeople and foreign investors alike.Indian companies with a presence in China have beena part of the transition through direct investment,by providing employment opportunities for Chinesecitizens, and by finding and developing investmentopportunities for Chinese investors to enter the Indianmarket.Giving Back to SocietyFor any company wishing to establish a positivereputation and build a lasting future in China,demonstrating a commitment to the country and itspeople is essential. Beyond localizing operations,creating jobs and contributing to the economy, it iscrucial to make a meaningful contribution to society.This became particularly evident following the Sichuanearthquake in 2008. At this time, certain multinationalscame under fire from Chinese consumers with accusationsthat their contributions to disaster relief did not matchup to the size of their presence in China. The sentimentwas clear; companies making their fortune in China havea duty to give something back.Many Indian companies have a deeply rooted senseof corporate and environmental responsibility and havebeen active in China; selecting projects aligned withtheir corporate values, or specific areas of expertise,and making valuable contributions to society.‘Retracing the Path to Prosperity – Lessons from India-China BusinessPartnership,’ a CII - Embassy of India Beijing publication, was releasedat the India Show in Beijing on 26 October. For more details, pleasecontact: eb.rajesh@cii.in84 | November 2012 Communiqué