05 newsmaker - cii

2 | March 2011 Communiqué

05 newsmaker Trade Agreements with Japan & Malaysia

CIIMissionsvisitedJapanandMalaysia, coincidingwith thesigningof theComprehensiveEconomicPartnershipAgreement (CEPA)withJapan,and theComprehensiveEconomicCooperationAgreement (CECA)withMalaysia.

09 spotlight Financial Inclusion

Innovativeparadigmscanhelpconvert ‘Obligation’ into‘Opportunity’, finds theCII-BCGReportonFinancialInclusion.

12 Cover story Understanding Budget 2011-12

The focus inBudget 2011-12 isonbuildinginfrastructure, tackling inflation, andputtingmore income in thehandsof rural India.

23 foCus International Engineering & Technology Fair

The19theditionof the flagship InternationalEngineeringandTechnologyFair, showcased technological prowessindiverse sectorsof theeconomy.

29 Corporate india CII Governance Series

IntheCIIGovernanceSeries,leadersofcorporateIndiasharedtheirperspectiveoncorporategovernancechallenges.

plus All our regular features

Volume 20 No. 3 March 2011

Edited, printed and published by Chandrajit Banerjee, Director General, CII, on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi-110003 Tel: 91-11-24629994-7 Fax: 91-11-24626149 Email: [email protected] Website: www.cii.inPrinted at Lustra Print Process. B- 249 Naraina Industrial Area, Phase 1, New Delhi - 110 028 Registration No. 34541/79

JouRNAL oF ThE CoNFEDERATIoN oF INDIAN INDuSTRy

wewelcomeyourfeedbackandsuggestions.dowritetousat [email protected]

Contents

Communiqué March 2011 | 5

newsmakerindia & the world

IndIA And JApAnformally signed theC o m p r e h e n s i v eEconomicPartnershipAgreement(CEPA)on16 February, duringthe visit ofMrAnandSharma, Min is terfor Commerce andIndustry, India, toJapan.

Expressing his optimism on the signing of CEPAbetweenthetwocountries,MrHariSBhartia,President,CII, said “TheCEPA signed between India and Japanis essentially the first step towards the process ofbuildingastrong,sustainableandamutuallybeneficialeconomic relationship between the two countries. Weare confident that the CEPA will catapult the bilateraleconomic relationship between India and Japan to ahigher trajectory.”

The India - Japan CEPA, after its implementation,is expected to eliminate tariffs on 94% of India-Japanbilateraltradeflowsoverthenext10years.TheCEPAalsoaimsatliberalizingthetradeinServices.Thepact would also help in increasing investment

India and Japan sign CEPA

o p p o r t u n i t i e sa n d i m p r o v i n gt h e i n v e s tm e n tenvironment,besidesensuringprotectionofIntellectual PropertyRights.

Coinciding with thevisit of Mr AnandSharma to Japan,C I I o rgan ised a

16-member business delegation to Japan from 15-16 February. The CII delegation, comprising of topbusiness leaders, was led by Mr Hari S Bhartia, andincluded Mr Amitabh Kant, MD & CEO, DMICDC,Mr. Rajesh Shah, Past President, CII, Mr. RameshAdige, President, Ranbaxy Laboratories Ltd, MrRahul Desai, MD, Religare Enterprises Ltd. andMr.ChandrajitBanerjee,DirectorGeneral,CII,amongstothers.

Themembers of the delegation also participated in aBusiness Conference in Tokyo organized by NipponKeidanren,a leading industrychamberofJapanandaMoU Partner of CII. Mr Anand Sharma delivered thekeynoteaddressat this conference.

CEOs delegation to Japan with Anand Sharma in Tokyo

Seiji Maehara, Foreign Minister, Japan; and Anand Sharma, Commerce and Industry Minister, India; with Hari S Bhartia, President, CII, and and Co-Chairman & MD, Jubilant Bhartia Group; at the signing ceremony of the CEPA between India and Japan, in Tokyo


Mr AnAnd ShArMA,Un ion M in i s t e r o fCommerce & Industry,India, and his Malaysiancounterpart, Mr MustapaMohamed, Minister forInternational Trade &Industry,signedtheIndia-Malaysia ComprehensiveEconomic CooperationAgreement(CECA)inthepresence of MalaysianPrime Minister, Mr MohdNajib Tun Razak atPutrajaya in Malaysiaon 18 Ferbruary. ThesigningofthisAgreementconcludes theprocessesfor implementing theCECA from1July2011.

TheIndia-MalaysiaCECAisacomprehensiveand ambitious agreement that envisagesliberal trade in goods and services and astable and competitive investment regimeto promote foreign investment between thetwocountries.ThegoodspackageundertheCECAtakesthetariffliberalizationbeyondtheIndia-ASEAN FTA commitments on items ofmutual interest forboth countries.

Under the agreement, India will get marketaccess in Malaysia for goods including fruits such asmangoes,bananaandguava,basmatirice,twowheelersand cotton garments. At the same time, protectioncontinues to be provided for the sensitive sectors.Under the services agreement, India and Malaysiahave provided commercially meaningful commitmentsin sectors andmodes of interest to each other whichshould result in enhanced services trade. Sectorssuch as accounting and auditing, architecture, urbanplanning, engineering services, medical and dental,IT and ITES, management consulting services, etc.wouldgetMalaysianmarketaccess.Two-way flowofinvestmentsarealsoexpected toget aboost.

MalaysiahasofferedacomparativelyhigherlevelofFDIinkeysectorsof interest to Indiasuchasconstructionservices (51%),computerand relatedservices (100%),management and consultancy services(100%). This isabreakthrough,giventhatMalaysiahasaBhoomiputra

policy which mandates30% equity participationby local companies.

TheAgreementwillcomeintoeffecton1July2011and the first review willbe heldwithin a year ofcoming into force.

Malaysia is the 3rdlargest trading partnerof India amongst theASEAN (Associat ionof South East AsianNations)countries.India-MalaysiatradeincreasedfromUS$ 3.52 billion toUS$9.03billionbetween

2005and2010after reachingapeakofUS$10.65billion in 2008.

MrSharmaledahigh-levelbusinessdelegationtotheevent,includingCEOsoftopCIImembercompaniesinIndia,MrBMuthuraman,President-Designate,CII, andViceChairman,TataSteel,Mr Deep Kapuria, Chairman, Hi-tech Gears,Mr. Ranganathan Venkata Sheshan, CEO,MAS GMR Aerospace Engineering CompanyLtd, Mr. Manish Singhal, Executive Director –International Business Division, Bharat EarthMovers,DrDebashisSarkar,GeneralManager,

CoalIndia,MrP.S.Nair,CEO-Corporate(AirportsSector),Delhi InternationalAirport, andMrUmangSharma,CEO&Director,Bry-AirAsiaPvtLtd.

Earlier,MrAnandSharmacalledontheMalaysianPrimeMinistertoapprisehimofthesteadygrowthinbilateraleconomic engagement and the excellent relationsbetween the two countries. Mr Sharma expressed thehopethat thebilateral tradetargetofUS$15billionby2015 set during the visit of the Indian Prime MinistertoMalaysia lastOctoberwouldbeachievablewith thesigningof thebilateralCECA.

DuringhismeetingwithMrMustapaMohamed,MITIMinister,MrSharmadiscussedawiderangeofbilateralandregionalmatters including the Delhi-Mumbai Industrial Corridorproject, the progress under the India-ASEAN Services &InvestmentAgreementnegotiations,andtheComprehensiveEconomicPartnership inEastAsia (CEPEA).

newsmaker india & the world

India - Malaysia Bilateral CECA

Y.B Datuk Seri Mustapa Mohamed, Minister of International Trade & Industry, Malaysia; and Anand Sharma, Minister of Commerce & Industry, India; exchanging the CECA documents while Dato’ Sri Mohd Najib Tun

Abdul Razak, Prime Minister of Malaysia, looks on

B Muthuraman, President-Designate,

CII, and Vice Chairman, Tata Steel Ltd


Mr. prAnAB MUkhErJEE,FinanceMinisterofIndia,releasedtheConfederationof Indian Industry(CII)andtheBostonConsultingGroup(BCG)Reporton‘FinancialInclusion–FromObligation toOpportunity’on5MarchinNewDelhi.

The report is basedon a nation–wide survey coveringaround12,000customers,tounderstandtheirneedsintermsofcreditandfinancialproductsandthedifficultiesthey face in meeting these. It aptly brings home theextentandnatureoffinancialexclusioninIndiathroughselect customer profiles, that range from a rickshawpuller in New Delhi earning Rs. 36,000 per annum toa shopowner inUltadanga,WestBengal, earningRs.60,000per annum.

Thesurveyrevealsthat theextentof financial inclusion

Financial Inclusion

From Obligation to OpportunityThe task is herculean, and challenges infinite, in taking basic financial

services to the Indian masses. But innovative paradigms can help

convert ‘Obligation’ into ‘Opportunity’, finds the

CII-BCG report on Financial Inclusion

in India is47%of Indianhouseholds, thecriteriabeingthehouseholdowningabankaccount.Thesituationisgrimmer in rural Indiabecause, despite having 80,500bank branches spread across the length and breadthof thecountry,only5%of India’sover600,000villageshave a bank branch. Thus, the task of inclusion isHerculean, and challenges infinite in taking the basicfinancial services to themasses.

But obligation is just one side of the coin. The othersideconstitutesnothinglessthanaprofitablebusinessopportunityhiddenintheprocessof includingthevastmultitudesinthefinancialambit.Thelatemanagementguru,ProfC.K.Prahaladassertedthatfortuneliesatthebottomofthepyramid.Indeed,amplebusinesspotentialliesatthebottomoftheIndianfinancialpyramid,given

B Muthuraman, President-Designate, CII, and Vice Chairman, Tata Steel Ltd; Pranab Mukherjee, Finance Minister of India; Hari S Bhartia, President, CII, and Co-Chairman & MD, Jubilant Bhartia Group; and Chandrajit Banerjee, Director General, CII

spotlightfinancial inclusion


the vast untapped population,argues the report.

The report observes that dailywage earners, monthly wageearners, seasonal earners and apartoftheself–employedgenerallyconstitutethefinanciallyexcludedlot,who, onaccountof their lowincome, face constraints in saving and look out forshort term consumption loans. Interestingly, they optfor borrowing at higher costs due to the mere easyaccessibilityofthelocalmoneylender,friendorrelative.Here, the banks have traditionally come to the rescueoftheunder-privileged,butatcostsamountingto10to12 times the revenuesgenerated.The report indicatesthat continuingwith thismodelwould cost the centralexchequer a whopping Rs. 20,000 crores annually.However, recently, with RBI Business Correspondent(BC)Guidelines–oneof themost liberalguidelines intheworld, thepaymentdisbursementscost just3 to4timestherevenues.Hence,thechallengeforcorporatesand the government is to transform this obligation toanopportunity.

Accordingtothereport,thejourneyfromsocialobligationtobusinessopportunityinthefinancialinclusionexerciseruns through two routes– the ‘Opportunity’paradigmandthe‘Enabling’paradigm.Theopportunityparadigmimplies that financial service providers need to adoptcertaincostreductioninitiativesliketechnology,efficientdistribution and minimum manpower employmentcoupledwith revenueenhancement initiatives in termsofproduct targetingandnewbusinessmodels.

Thereportsuggeststhattheopportunityparadigmwouldnotonlyenhance theextentof financial inclusion from47%to65%butwouldalsofetchextraprofitsworthRs.1,500crorestotheserviceprovidersannually.Besides,marginal newcustomerswouldpaycharges far lesser(22-28% interest rates against 50-60% previously, andjust 5 to 10% remittance charges against 30 to 100%previously) than what they paid while dealing withinformal sector service providers, though these wouldstandtypicallyhigherthanthoseforthebank’sexistinghigherticketsizecustomers.Thus,itsawin-winsituationforboththeserviceprovidersaswellasthecustomers!Thereport,however,cautionsthat inthisparadigmthecustomerswouldpayhigherservicechargesthantheycurrently pay, and this may not be welcome in India.Further,itcautionsthattheopportunityparadigmcouldstill leavesomespace for further financial inclusionasserviceproviderswould target selectively.

To overcome the odds of theopportunity paradigm, the CII-BCG report suggests combiningthisopportunityparadigmwiththeenablingparadigm,whereinpolicymakerswouldusherinaconduciveandenablingenvironmentthroughadequate regulatory and policyinitiatives.Inthisregard,thepolicy

makers could support further reduction in interestrates and remittance costs, than those incurred in theopportunity paradigm. This could further augment theextentof financial inclusion to80%.

Thereportobserves that financial inclusioncouldbeareality given the support of policy makers and a pro-activerolebythefinancialserviceproviders.Itpreciselyoutlinesafifteenpointagendafortheserviceproviders,thegovernment and the regulator.

Agenda for Market participants

• Cutonhuman resourcecosts

• Build a low-cost network

• Adopt cost effective technology

• Use ‘ADHAR’platform

• Create targetedproducts and services

• Move from float-basedeconomics to ‘pay-per-use’model

• Conduct aggressive customer awarenessprogrammes

Agenda for the Market, the Government and the regulator

• Dedicate funds for literacy drives and vocationaltraining

• Disburse government payments throughADHAR-enabled system

• Promote inter-operability

• Maintainadequate credit history records

• CreateaFinancial Inclusion Index (FII)

• Facilitate rural infrastructuredevelopment

• Incentivise financial inclusionefforts

Facilitate easier regulatorynorms.

RBIaspirestoachieve100%financialinclusioninIndia.The onus lies not only with the government and theregulatorsbutalsowiththeserviceprovidersandtheendcustomersbyexploringtheparadigmsofopportunitiesandenablement.Thiscoulddefinitelypave theway toopportunity.

financial inclusion


In An ATTEMpT to address the structural nature ofinflation,theFinanceMinisterstatedinhisbudgetspeechthat the major focus for 2011-12 will be to removeproduction and distribution bottlenecks for key fooditems,which kept inflation stubbornly high in 2010-11.In India, 40% of total food produce is wasted due tolack of adequate infrastructure such as warehouses,cold storage and transportation. Thus, the measuresproposedtobuildinfrastructurefortheagriculturesectorbyapproving15MegaFoodParks,sanctioning24newcold storage facilities and increasing storage capacityby40 lakh tonnesare indeedwelcome.

Anothermajor focus of the Budget was investment ininfrastructure.TheallocationofRs214,000crore isanincreaseof23.3%over2001-11andamountstoaround49.0%of the total planallocation.

Othermeasurestoenhancetheflowoffundstothesector

Understanding Budget 2011-12

includeincreaseinFIIlimitsforinvestmentincorporatebondsandprovisionof tax freestatus to infrastructurebonds.Taxratesoninterestpaidonoverseasborrowingin infrastructure debt funds have been reduced to 5%insteadof theregularwithholdingtaxrateof20%.Thisis in line with the CII recommendations that stressedthat infrastructure development is a pre-requisite formanufacturingandagricultural sectorgrowth.

What is truly impressive is that the fiscal consolidationmeasureswereabletomoderatefiscaldeficit,bringingit down to 5.1% of GDP in 2010-11, lower than thebudgetestimateof5.5%.The target for2011-12 is setat4.6%.Ifachieved,thiswouldchecktheriseininflationand interest rate, and facilitate larger credit availabilityto the private sector. However, there are some risksto this estimate. The buoyancy in gross tax revenue,assumedtogrowat18.0%in2011-12,dependsonthe

Budget 2011 - 12 comes at a time when the

Indian economy has rebounded to its pre-crisis growth

trajectory, but inflation has emerged as a major concern

coverstory economy

Hari S Bhartia, President, CII, and and Co-Chairman & MD, Jubilant Bhartia Group; Shereen Bhan, News Anchor, CNBC-TV18, Vinayak Chatterjee, Chairman, CII Urbanisation & Future Cities Council, and Chairman, Feedback Venture Pvt Ltd., and Sunil Kant Munjal,

Past President, CII, Chairman, CII Economic Policy Council and, Chairman, Hero Corporate Service Ltd.


overallgrowthscenario.Giventhatmanyimprovementsare taking place in the tax environment, this estimateisprobablyachievable.Moreimportantly,theestimateson the expenditure side are a cause for concern. TheBudgetassumesthattheoverallsubsidybill islikelytofallby12.5%andhasbudgetedafallof9.1%infertilizersubsidy and a huge 38.4% fall in petroleum subsidy,which appearunrealistic.

Sectoral InitiativesThesectoralfocusoftheBudgetisalignedtoprioritiesfor longer-termgrowth. The threekeyelementsare:

• Addressing constraints on industrial growth due toinfrastructureand skill deficits

• Incentivizingagriculture to expand rural incomes

• Incentivizing valueaddition in theexport sector

Agriculture

Theagriculturesectorwasthemajorbeneficiaryinthisbudget that saw thedeepeningof older schemes andtheannouncementof newones.Somekey initiatives:

• Removalofproductionanddistributionbottlenecksofitems like fruitsandvegetables,milk,meat,poultryand fish,which account formore than 70per centof the WPI basket for primary food items throughanexpansionof theongoingRashtriyaKrishiVikasYojana (RKVY).

• Expansion of the on-going initiative to extend theGreen Revolution to Eastern India, with Rs. 400crores to improve the rice-based cropping systemof Assam, West Bengal, Orissa, Bihar, Jharkhand,EasternUttarPradeshandChhattisgarh

• Deepening the government’s initiative on pulsesandoil-seeds,withRs.300croresfortheintegrateddevelopment of 60,000 pulses villages in rainfed

areas, andRs 300 crores to bring 60,000hectaresunderpalmoil plantation

• Rs. 300 crores for a new initiative to developvegetable clusters, especially nearurbanareas.

Agro-sector Logistics

With rising foodprice inflation, thegovernment isnowserious about addressing supply-side constraints inagriculture. Thus, capital investment to createmodernstoragecapacityisnoweligibleforviabilitygapfunding,and cold chains and post-harvest storage have beenrecognizedas infrastructure sub-sectors.

Full exemption on excise and customs duty for a lotof farm storage and refrigeration equipment and theirpartshasbeenannounced.

Farm Sector Credit

This budget has raised the target of credit flow tofarmers to Rs 4,75,000 crores, and has extended theexisting interest subvention scheme of providing shorttermcrop loans to farmers.

Infrastructure

TheBudget hasmade infrastructureadevelopmentapriority,allocating48.5percentofthegrossbudgetarysupport toplanexpenditure for this.

To address capacity constraints in key infrastructuresuchasports,railways,andhighways,thegovernmentwill allow tax-free bonds of Rs. 30,000 crore to beissued by various Government undertakings. If suchsumsareraisedefficientlyandprojectsconceptualized,they will not only add much-needed capacity in coreinfrastructure, but also generate demand for privatesector constructionand infrastructure related services.

ThebudgetalsoproposestocreateaSpecialPurposeVehicle (SPV) toattract foreign funds for infrastructure.

economy

Dhruv M Sawhney, Past President, CII, Chairman, CII International Council, and CMD, Triveni Engineering & Industries Ltd; Sunil Kant Munjal; Venu Srinivasan, Past President, CII, Chairman, CII Manufacturing Council, and MD, Sundaram-Clayton Ltd; B Muthuraman, President-Designate, CII, and Vice Chairman, Tata Steel Ltd; Hari S Bhartia; and Chandrajit Banerjee, Director General, CII


economy

Interest payment on suchborrowings would be subjectto a much reduced withholdingtaxof just 5%, and income fromthis fundwould be exempt fromall taxes.

Urban Transport and housing

Urban transport and low costhousing have the potential tocreate considerable additionaldemand forprivate infrastructurefirms. Work will start on DelhiMetro Phase-III and MumbaiMetroLineIII,whiletheon-goingMetro projects of Bengaluru,Kolkata and Chennai will getfinancial assistance for speedyimplementation.

TheFinanceMinisterwillalsoofferinvestment linked deduction todevelopersofaffordablehousingunder anotified scheme.

Skilling

While the entire Educationsector received a significant24 % increase over last year, akey development is the focuson Vocational Training, witha revised centrally sponsoredscheme for ‘Vocationalisation ofSecondaryEducation’toimprovetheemployabilityofIndia’sfutureworkers. An additional Rs. 500crore has been allocated tothe National Skill DevelopmentFund.

Manufacturing

The Government wants themanufacturingsectortocontribute25%of India’sGDP in ten yearstime, from the current 16%.Mr Mukherjee has promised aNational Manufacturing Policyto bring down the complianceburdenofIndianindustrythroughself-regulation.

The budget also included moreconcreteproposalsforastrategictrade policy to develop value-

additionandminimizetheexportsof raw materials. Some keyproposals are:

Textiles: Reduction in basiccustoms duty for raw silk,cotton waste and for certainintermediates used for technicalfibre andyarn.

Chemicals: Reduction in thebasiccustomdutyforintermediatechemicals.

Metallurgy: Reduction in basiccustoms duty for ferrous andsome non-ferrous raw materialsand scrap metals. The highexport duty on iron-orewill alsoaiddomestic valueaddition.

paper and Wood: Reduction inbasic customs duty for rayongradewoodandwastepaper.

Elec t ron ic dev ices and Machinery: Domestic demandis rapidly expanding, creatingeconomies of scale that couldbe leveraged to turn India intoa global manufacturing hubfor such products. Some keyinitiatives for this sector arethe reduction in basic customsduty on intermediate parts andcomponents used for mobilehandsets and battery chargers,and custom duty exemption forspecified raw materials used intheelectronics/IT industry. LEDshave been fully exempted fromspecial dutyof customs.

Capital Goods for power Sector: Excisedutyexemptionhasbeenextendedtothedomesticcapitalgoods industry to balance theadvantages enjoyed by capitalgoodsimportedfortheexpansionof existing mega or ultra megapowerprojects.

Environmental Goods:Towardssustainable governance andIndia’s commitment to reducecarbon intensity, the Budget

CEOs Snap Poll on the Budget


economy

reduces the duty on environmental goods. Whileencouragingfromanenvironmentalperspective,suchamovecouldimpairthefledglingdomesticenvironmentalgoods industry.Someof the keymeasuresare:

• Full exemption on customs and excise duty onbatteries used in electric vehicles, including two-wheelers

• Concessionalexcisedutyof10percenttovehiclesbasedonhydrogencell technology

• FullexemptionfrombasiccustomsdutyandspecialCVDforspecifiedpartsofhybridvehicles.Inaddition,a concessional rate of excise duty of 5 per centprescribed to incentivize their domesticproduction

• Basic customs duty on solar lanterns reducedfrom 10 per cent to 5 per cent; on inputs used tomanufacture solarmodules/ cells, duty reduced tozero.Thismightexposedomesticindustry,especiallySMEs, to foreign competition, without giving it thetime to leverage the zerodutyon imported inputs.

Services

The key feature for the services sector has been theinclusion of new services within the ambit of servicestax. This will increase the price for services such ashotelaccommodation(2-starandabove),air-conditionedrestaurants (serving liquor), air travel, and high endhospitals (i.e.with central air-conditioning).

IT and ITES

While there are nonewproposals for the IT and ITESindustry,thelevyof18.5%MATondevelopersofSEZs,as well as units operating in these zones will have a

negativeimpactonthissector.However,thereducedtaxon dividends received by an Indian company from itsforeign subsidiarywouldbenefit this sector themost.

Inclusive DevelopmentInclusivegrowthanddevelopment,byitsverydefinition,impliesanequitableallocationofresourceswithbenefitsaccruing toallsectionsofsociety.Budget2011-12notonly significantly augments funds available to variousschemes,butalsoproposesanumberofnewinitiativestocreateemploymentandincreaserural incomes.TheallocationofRs1,60,887croreforthesocialsector(36.4per cent of the total plan allocation) is an increase of17 per cent over the current year. The National FoodSecurity Bill is also proposed to be introduced inParliament this year.

Froman industryperspective, rising rural incomesarea source of increased demand that has tempered theshocksoftheglobaleconomiccrisis.However,thereissome concern that some of these schemesmight notbe fiscally sustainable.

Someof themajor social initiativesare:

Bharat nirman: The allocation for Bharat Nirman hasgoneup toRs58,000crore. It is proposed toprovideruralbroadbandconnectivitytoall2,50,000panchayatsin thecountry in three years.

MGnrEGA: In an attempt to keep the real wages ofemployeesconstantunderthescheme,theGovernmentwill indexthewageratesnotifiedundertheMGNREGAto the Consumer Price Index for Agricultural Labour,resultinginasignificantenhancementofwagesforthebeneficiaries across thecountry.

Dhruv M Sawhney; Hari S Bhartia; B Muthuraman; Rajive Kaul, Past President, CII, Chairman, CII Trade Fair Council, and Chairman, Nicco Corporation Ltd.; Sunil Kant Munjal; Vikram Kirloskar, Chairman, CII National Committee on Technology, and Vice Chairman,

Toyota Kirloskar Motor Pvt Ltd.; and; Malvinder Mohan Singh, Chairman, CII National Committee on Public Health, and Group Chairman, Fortis Healthcare Ltd & Parkway Holding Ltd.


economy

Education: TheBudgethasallocatedRs52,057crore,an increase of 24 per cent over the previous year, touniversalize access to secondary education, increasethe percentage of scholars in higher education andprovide skill training.

TheallocationofRs21,000crore,up40percent, forthe Sarva Shiksha Abhiyan to implement the right ofchildren to free and compulsory education is a stepinthedesireddirection.TheSCandSTcommunities,many of whom are still unable to access educationopportunties,wouldavail a scholarshipbenefit inStd9 and 10, which is expected to cover about 40 lakhstudents.

Skill development: TheFinanceMinistersaid that theNational Skill Development Council is well on courseto achieve its mandate of creating 15 crore skilledworkerstwoyearsaheadof2022.WhiletheBudgethasallocated an additional Rs 500 crore to further boostskill development programmes, given the substantialskill shortage in the country, the scheme should berolledout at amuch larger level.

health: Forhealth,theplanallocationhasbeenincreasedby 20 per cent to Rs 26,760 crore. The RashtriyaSwasthya Bima Yojana is being further extended tocoverunorganizedsectorworkersinhazardousminingandassociated industries.

Financial Inclusion: Thepreviousbudgethadadvisedbanks to provide banking facilities to habitationswith a population of over 2000 byMarch 2012. Thebankshave identifiedabout73,000suchhabitations.This year, banks will cover 20,000 villages, and theremaining,nextyear.Financial inclusionwillnotonlymobilize capital for industry by harnessing hitherto

untapped savings, but also increase the abilityfor availing credit, and add to consumption andinvestment-leddemand,toactasapositivemultiplierfor industry.

Unorganized Sector: TheBudgethasseveralpositivemeasuresfortheunorganizedsector.Giventhesuccessof the co-contributorypension scheme ‘Swavalamban’announcedlastyear,thisbudgetwillrelaxtheexitnorms,allowing subscribers to exit at 50 years instead of 60years, or aminimum tenure of 20 years, whichever islater.Similarly,theon-goingIndiraGandhiNationalOldAge Pension Scheme will make its BPL beneficiarieseligible for pension at 60 years, versus the earlier 65years. The pension amount is also being raised fromRs200toRs500permonth forpeopleaged80yearsandabove.

regional development: To boost development in theNorth Eastern Region and Special Category States,the allocation for special assistance has been almostdoubled toRs8,000crore.Special support to Jammu& Kashmir is anchored in the Rs 28,000 crore PrimeMinister'sReconstructionPlan.Inaddition,forthecurrentyear, about Rs 8,000 crore has been provided for theState's development needs.The allocation under theBackwardRegionsGrantFundhasbeen increasedby35per cent toRs9,890crore.

As India embarks on the path of higher growth,sustainabilityandinclusionhavebecomekeyimperatives.The focus in this budget is on building infrastructure,includingagricultureinfrastructure,andtacklinginflation.Budget2011-12alsoseekstoputincomeinthehandsoftheruraleconomytofurtheraugmentdomesticdemand,whichwill help sustain India’shighgrowth.


WELCOMInG ThE OppOrTUnITy toreceive feedbackfromindustryontheBudgetpresentedafew days ago. MrPranabMukherjee, Finance Ministerof India, met themembers of CII’sNational Councilon5MarchinNewDelhi.TheFinanceMinister expressed confidence in sustaining a highgrowth trajectory.

Mr Muhkerjee said his Budget has five short termobjectives:

• Fiscal consolidation

• Improving supply responseof agriculture

• BoostingtheFinancialSector,andtheManufacturingSector

• Promoting InclusiveDevelopment

• Streamlining the taxation, trade, and tariffadministration.

The Current Account Deficit, he said, would remainaroundthelevelof2009-10,whileFiscalDeficit,whichstood at 5.1% of GDP in 2010-11, was expected tofall to 4.6% in 2011-12. The Net Market Borrowing,expected to be Rs 3.43 lakh crore in 2011-12, saidMr Mukherjee, is lower in absolute terms comparedto the previous year.

For infrastructure, the Finance Minister pointed outthat the allocation of Rs 214,000 crore, amounting to

Sustaining the High Growth Trajectory 48.6%ofthetotalPlanexpenditure,was a 23 .3%increase overthepreviousyearQuality andpaceof infrastructured e v e l o pm e n twouldbesteppedup, heassured.

H e s o u g h tindustry’s help inbringing about a

convergence views on various reforms such as GST,labour lawsand financial sector legislations.

Mr Hari S Bhartia, President, CII, pointed out thatagriculture was the key to Inclusive Growth. Supplyside issues are hindering growth, he said, noting thatclearing thesebottleneckswouldbring in investment.

The Manufacturing Sector, Mr Bhartia said, can growonly if issues such as poor infrastructure and hightransaction costs are dealt with effectively. The CIIPresidentdescribedtheDirectTransferofcashsubsidiesasa forward lookingmove.

Mr Mukherjee responded to questions on a varietyof issues flagged by members, spanning education,infrastructure, agricultural productivity, and corporateaffairs.

SecretariesfromtheMinistryofFinancewhowerealsopresentincludedMs.SushamaNath,FinanceSecretary,Mr. Sunil Mitra, Revenue Secretary, Mr R Gopalan,Secretary,EconomicAffairs,Mr.SumitBose,Secretary,DisinvestmentandMr.ShashiKantSharma,Secretary,FinancialServices.

economy

Pranab Mukherjee, Finance Minister of India, with B Muthuraman, President-Designate, CII, and Vice Chairman, Tata Steel Ltd; and Hari S Bhartia, President, CII,

and Co-Chairman & MD, Jubilant Bhartia Group

Sunil Mitra, Revenue Secretary; Sushama Nath, Finance Secretary; B Muthuraman; Pranab Mukherjee; Hari S Bhartia; Chandrajit Banerjee, Director General, CII; R Gopalan, Secretary, Economic Affairs; Sumit Bose, Secretary, Disinvestment; and Shashi Kant Sharma,

Secretary, Financial Services


In A SpECIAL Post Budget Interaction organized byCII on 3 March, senior officials from the Ministry ofFinance interacted with Industry representatives. Thepanel includedMr.SunilMitra,RevenueSecretary,Mr.S.D.Majumdar,Chairman,CentralBoardofExciseandCustoms,Dr.KaushikBasu,EconomicAdvisor,andMr.SunilMunjal,PastPresident,CII,Chairman,CIIEconomicPolicy and Chairman, Hero Corporate Service Ltd.The interactive session was chaired by Mr. ChandrajitBanerjee,DirectorGeneral,CII.

This budget has laid out part of the reforms agenda,setting the tone for much-awaited long term reformssuchasfast-trackedintroductionofGST,DTC,subsidyreformsandtacklingblackmoney/corruptionetc;whichare crucial for streamlining the overall fiscal situation,saidMrMunjal.He felt that the implementationofGSTandDTCnext year is heartening.

Appreciatingthebudget’sspecial thrustonagriculture,infrastructure and social sectors, which are pivotal forensuring inclusive growth in real terms, he howeverwarnedthatconstantmonitoringandauditingofspending,particularly on social sectors, was imperative. He alsourged the government to seek private participation inmonitoring or implementation of policies/schemes forbetterefficiencyandknowledgesharing,andcalledforstrengtheningthepartnershipbetweengovernmentandprivateplayers, like in theUIDproject.

Addressing the subsidy issue, Mr. Munjal said theintroductionofdirectcashtransfertopeoplebelowthepoverty line isamajorstepinthedirectionof inclusive

growth and fiscal prudence. This would ensure bettertargeting,withnecessarycheckson funds leakage,hesaid,suggestingthattheschemebewidenedtoincludeall typesof subsidies, as isdone inother countries.

On Financial Inclusion, Mr. Munjal appreciated thegovernment’s assiduousness in not affecting sturdyconsumptionandinvestmentdrivers.Consumptionasaneconomicdriverhasbeenmaintainedbyproviding taxexemptions.Healsonoted themeasures toboost theruraleconomy,suchasindexationofMNERGA’swagestoinflationandraisingtheincomeofAnganwadiworkersandhelpers.Severalincentivesofferedtoindustrydirectlyor indirectly are directed towards increasing the shareofmanufacturingfrom16%currently to25%ofGDPinthenext ten years.

Mr. Mitra elaborated that the main aim of the Budgetwastobroadenthetaxbase,moderatetaxburdenandencouragevoluntarycompliance.Hesaidtherehasbeendeliberate attempt to not raise excise duty in order topromotepartnershipwith industry foroveralleconomicgrowth. Furthermore, the hike in MAT should not beseenassignificant, ratherasanoffsetof thereductionincorporatesurcharge.Onnon-abolitionofCSTtoavoiddoubletaxation,hepointedoutthatoncetheGSTrollsout, CSTwill be automatically rolled back. But if CSTwasbroughtdowntozeropriortotheimplementationoftheGST,thestateswouldhaveraisedstrongopposition,as it is oneof theirmajor sourcesof revenue.

However, he expressed apprehensions on the timelyintroductionofGSTandDTCnextyear,observingthat,

Post-Budget Interaction

Dr. Kaushik Basu, Economic Advisor; Sunil Munjal, Past President, CII, Chairman, CII Economic Policy and Chairman, Hero Corporate Service Ltd; Sunil Mitra, Revenue Secretary; and S.D. Majumdar, Chairman, Central Board of Excise and Customs

economy


”Ideally,thegovernmentwouldhavelikedtobringbothDTC andGST together…But the legislation cannot bevoteduponuntiltheratificationiscompleted…Theremaybeproblemon the time factor (1April 2012).”

Mr.Majumdarexplainedthatanattempthasbeenmadein the budget to revise tax rates downward, barringa few exceptions, with the objective that extra profitsearnedbycompanieswouldbeploughedbacktofosterinvestmentandoveralleconomicgrowth;widenthetaxbase by trimming the exemption list;widen the scopeof tax on services, and finally, redefine some servicesand inputs toavoidambiguityandplug tax loopholes.Inaddition,measureshavebeentakentocutdownthetransaction cost incurred in tax realization by puttinggreater emphasis on automation, facilitating electronicfilingandother IT initiatives.

Inflation has reduced, but is still at an elevated level.Dr. KaushikBasuexplained that thebudget has takenstepstoaddressthisgraveissuewithouthamperingthepace of economic growth by measures like retainingexciseandservicetaxat10%level,pumpingmoneyintoagriculture,loweringofbasiccustomsdutyonagriculturemachinery,andaligningoftheretailsectortoagriculturalproducts. These initiativeswould aid in containing theelevated food inflation,hesaid,whilepointingout thatinflation is not affecting India alone, but is a commonscenario in most emerging economies. It is more ofa tradeoff between growth and inflation. Resorting tomonetary tightening, according toDrBasu,was not alongtermviablesolutiontotameinflationarypressures,

asincreasingtheinterestrateswouldputunduepressureon industry, which could result in unemployment andretardation of growth. He suggested other ways totackle this concern – simplification of multiple layeredtax structure to address supply side bottlenecks, andfree movement of food items across states to reducedivergenceinretailpricesandfarmgateprices,asthecurrentinflationisnotbecauseofsupplysideconstraints,but rather a issue of a long supply chain with lots ofintermediaries, which artificially escalates food prices.This would help reduce the bloated food subsidy billaswell, he said.

Dr.Basustressedthat fiscalconsolidation iscritical forinflationmanagement. The reduction in fiscaldeficit to4.6% in 2011-12 and further to 3.5% by 2013-14 hasbeenmuchappreciated,hesaid.Further, the increaseofabout3.0% in totalexpenditure forFY2011-12over2010-11willbewellfundedbythebountyreceivedfromthe3Gauctionsandhencewithinthecomfortablezoneof thegovernment.Apartof this revenuewillbeusedfor fiscal consolidation.

Allaying industry’s concerns over the fiscal deficitnumbers for 2011-12 and 2013-14, given the risingsubsidy bill, Dr. Basu assured that the target is notover-ambitious and is well within reach, given thebuoyancy seen in both revenue (tax and non tax)andcapital receipts.Healsoassured that in thenext4-5 years, India could be on parwithChina in termsof economic growth, if the current rate of economicgrowthprevails.

Advertise in CII Communique, to reach the top management of Indian industry every monthMechanical Details & Tariff

FULL PAGE ( 4 COLOR) Charges per release: BACK COVER (4 COLOR) Charges per release:Size: 23 cms (height) by 17 cms (width) Size: 23 cms (height) by 17 cms (width) Rs 28,000 /

US$775

Left hand position Rs 15,000/ US $ 450

Right hand position Rs 20,000/ US $ 575

FRONT/BACK INSIDE COVER/PAGE 1 (4 COLOR)

DOUBLE SPREAD (4 COLOR) Size: 23 cms (height) by 17 cms (width) Rs 23,000 / US$650

Size 23 cms (Height) by 36 cms (Width) Rs 35,000 / US$ 1000

Half page advertisement size 11 cms (height) by 17 cms (width) Rs 8,000

economy


CII OrGAnIzEd TELEvIEWInGsessionsofthebudgetpresentation for its members in all the four regionalheadquarters,aswellasinalargenumberoflocationsacross the country. These were followed by mediainteractions and discussions on the salient features ofthis year’sbudget.

CII members in the Eastern region felt that Budget2011-12has takencommendable initiatives to improvet h e o v e r a l lmacroeconomicconditions of theIndianeconomy.Itis a balanced andgrowth orientedbudget, said MrRanaveer Sinha,Deputy ChairmanCII (ER). “Wearedelighted that theBudget keeps thegrowthmomentumof the economygo ing by no treverting excisedutiestopre-crisislevels”.

The membe r sexpressedtheviewthat the increasedfocus on sk i l ldevelopment, education and innovation would help inensuring long-termeconomic competitiveness.

In the northern region, CII members welcomedthe focus on infrastructure, agriculture and greatertransparency.MrRMKhanna,Chairman,CIINorthernRegion, described the budget as ‘balanced.’ Hewelcomed theRs 100 crore allocation formeeting theinfrastructure needs of Ladakh and Rs 150 crore forJammu, and the inclusionof Jalandhar andKanpur inthe seven leather clustersproposed in thisbudget.

The handicraft cluster at Jodhpur will help leveragethe rich tradition of the state, felt CII members. Theyalsolookedforwardtotheallocationofsomeofthe15proposedMegaFoodParks to theNorthernRegion.

Members in the Southern region termed the UnionBudget as forward looking and growth oriented.

The move to bring down the fiscal deficit to 4.6% in2011-12 is in the right direction to sustain the growthmomentum.Maintainingthepeakrateofcustomsdutyat10percentandcentralexcisedutiesunchangedinmanyitemswouldgiveafilliptothemanufacturingsector,saidMr T T Ashok, DeputyChairman,CII Southern Region.Thegreaterfocusonsocialdevelopmentmeasures,microenterprises,agriculturesectoretcwouldensureinclusive

growth,he felt.

W e l c o m i n gthe add i t i ona la l l oca t i ons t oeducation and skilldevelopment andthevocationalisationo f s e c o nd a r ye d u c a t i o n ,membersexpectedmore reform inthe private sectoreducation.

T h e r e wa s apositive responseto measures suchas the 23% risein infrastructurespend ing , t heincrease of exportduty to 20% onironore; shift from

optionaltocompulsoryexcisedutyforbrandedgarments;focus on green vehicles; and the move to bring intechnologyingovernance.Themembersarealsolookingforward to the implementationofGST thisyear.

CII members in theWestern region welcomed thetabling of the GST Bill, the Companies Bill and otherbills for financial sector reforms in the current sessionof Parliament.However,whilewelcoming the signal tobring in better governance, they felt that more couldhavebeendone for theeducationandhealth sectors.

Thisyear’sUnionBudget,saidMrArunNanda,Chairman,CII Western Region, has been largely in line withindustryexpectations.HeappreciatedtheGovernment’scommitmenttobringdownthefiscaldeficitto4.6%,andnoted that the increased allocation on infrastructure,healthandagriculturereiteratestheGovernment’sfocuson inclusivegrowth.

Budget Televiewing Sessions

Budget Televiewing Sessions in (clockwise from top) Kolkata, Chennai, Mumbai and Chandigarh

economy


focustrade fairs

ThE InTErnATIOnAL EnGInEErInGandTechnologyFair, or IETF, as the flagship event of CII since 1975 iswidelyknown,hasovertheyearsachievedthestatusofacomprehensiveinternationalB2Beventinthispartoftheworld.Segmentedintowell-definedtechnologicalsectionsof the engineering/manufacturing industry and servicessector, a number of focused sector specific shows aresuccessfullyorganizedconcurrentwith IETF.

The19theditionof IETFhostedaround250exhibitorsspread over an area of 25000 sqm, and generatedbusiness enquiries worth Rs 1400 crores. As manyas 25,162 business visitors visited the fair, along withoverseas business delegations from Japan, UAE,Singapore, Iran,UKandChina in largenumbers.

The three-day fair was inaugurated by Mr AnandSharma, Union Minister for Commerce & Industry,on 10 February in New Delhi. “The fair provides aplatform forawide rangeofbusinessopportunitiesbyshowcasing technological strength in different sectors

of theeconomyaswellasstateof theartenvironmentfriendly technologiesandproducts”he said.

PointingoutthatIndia’smanufacturingsectorhasgreatpotential to expand, Mr. Sharma explained the stepsbeing taken by the government to boost the sector.He informed that India’s first ‘National ManufacturingPolicy’,willsoonbeunveiled,whichaimstoincreasethecontributionofthemanufacturingsectorinIndia’sGDPfrom thecurrent 17percent to around25percent.

The Minister also talked about the need for creatinggainful employment opportunities for a large section ofIndia’s population and felt that themanufacturing sectorshouldbemadethe“bulwark’ofemploymentgenerationinIndia.Hecalledforincreasedinvestmentintrainingandskillsdevelopment;investmentinincreasingmanufacturingcapacityandincreasedinvestmentinR&D,tohelpboostemploymentinthemanufacturingsector.NotingthatIndia’sinvestmentininnovationisminisculeataroundonepercentofGDP,hehoped itwoulddouble in thenear future.

Anand Sharma, Minister of Commerce & Industry, India, inaugurating IETF 2011, as Hari S Bhartia, President CII; and

Sheikha Lubna Al Qasimi, Minister of Foreign Trade, UAE, look on

Vincent H Pala, Union Minister of State for Water Resources & Minority Affairs, inaugurating Water India 2011, a concurrent

show at IETF 2011


trade fairs

TheMinister pointed out that while the world becameinward looking and protectionist during the recentfinancialcrisis,Indiacontinuedtoengagewiththeglobethroughtradeandpartnershipagreements.Mr.Sharmaalso said that in the next two decades, three of theworld’s five largest economieswill be inAsia.

Ms. Sheikha Lubna Bin Al Qasimi,Minister of ForeignTrade,UAE,saidUAEthefocuscountryat this IETF, isIndia’sleadingtradepartner.Duringthefirsttenmonthsof 2010, bilateral trade between the two countriesstood at US$ 35.8 billion, up from US$ 29.4 billionreachedduringthesameperiodin2009.Stressingthatengineeringandtechnologyarecrucialforacceleratingand sustaining a country’s economic growth, shecalled for conservation of natural resources and theenvironment, and complimented CII for including ecoproducts at this year’s IETF.

Mr.RPSingh,Secretary,DIPP,calledforgreaterlearning

from Japan in the area of sustainable development. HesaidIndiahassignificantlyadaptedfromJapaninbuildingSmartCitiesalong theDelhiMumbai IndustrialCorridor.

Mr. Hideaki Domaichi, Ambassador of Japan to India,expressedhispleasureovertheparticipationofalargenumberof Japanesecompanies in IETF.

Mr. Hari S Bhartia, President, CII, described the fiveprongedstrategybeingadoptedbythegovernmentandindustry in India to sustainhigheconomicgrowth:

1. Investment in educationand skillsdevelopment

2. Higher investment in infrastructure

3. Increasing theshareofmanufacturing in India’sGDP

4. Improvingagricultural productivity

5. RationalisationoftaxsystemthroughtheintroductionofGoodsandServicesTax (GST).

Whileshowcasingthedepthandrangeoftheengineeringindustryandhighqualitycompetitiveproducts,IETF2011

A. Sai Prathap, Union Minister of State, Heavy Industries & Public Enterprises; Hari S Bhartia; Agatha Sangma, Union Minister of State for Rural Development; and

Chandrajit Banerjee, Director General, CII

Anand Sharma with Dr. Ryoichi Yamamoto, Chairperson, Preparatory Committee for Establishment of Eco-product Database


had a number of concurrent Fairs. It also featured anexclusive Contemporary Indian Art Exhibition. Variousconferences and events were held concurrent to themega fair, these included

• EPIF2011 InternationalConferencewith the theme‘Green Productivity for Sustainable Energy andEnvironment’ organized by National ProductivityCouncil

• IGet 2011-NewProductDevelopmentConference

• CEO’sMeetonWater

• Roundtable Sessions on Inclusive Integrated SolidWasteManagement

IETF Global:IETFGlobalfeaturedJapanasthePartnerCountry,andUAEastheFocusCountry.Participation fromChina,France,Germany, Italy,Malaysia,Thailand,Singapore,SlovakRepublic,andSouthAfrica showcased thebusinesspotential of thesecountriesacross industry sectors.

Manufacturing: TheManufacturing pavilion at IETF 2011 had a focus on Automation andInstrumentation,Technovisionand Innovation, andWelding.

Inclusive Integrated Solid Waste Management: The event focused on information exchangefor solutions, effectivewastemanagement strategies, innovative technologies, enhancedpublic-privatepartnerships,modernwastemanagement infrastructureandwasteminimization.The fairshowcased the latest inwastemanagement-related technologies,products and services.

Eco-products International Fair: This show focused on eco products, renewable energy, biomass,biofuels,andnewandalternatefuels,withthethemeof‘GreenProductivityforSustainableEnergy&Environment.’ Itwasorganized inpartnershipwith theAsianProductivityOrganization,Tokyo, and theNational Productivity Council, with the support and guidance of the Departmentof industrialPolicyandPromotion,UnionMinistryofCommerceand Industry.Theshowoneco-

productsworkedasacatalyst fornewpartnerships in thedevelopmentand transferofenvironmentallysound technologiestohelp to adapt to andminimize climate change.

Water India 2011: Water India 2011 highlighted the need for better infrastructure and management of issuesregarding Water, with an emphasis on standardization of equipment/systems in this sector, as well as qualitytesting laboratories and their rating.

Stainless Steel pavilion: This pavilion presented the emerging uses of stainless steel andits applications, showcasing opportunities for downstream industries to set up businesses with newlevelsof technical sophistication.

partmart & Autocare: This show dealt with automotivemaintenance/ care, automotive services,spareparts and replacementproducts, aftermarketproducts andancillarygoods.

• InternationalConferenceonWater

• OsakaBusinessPromotionSeminar

• Seminar on Procurement of Auto Components inNorth India, organizedby JETRO

The interactive sessionsat IETF2011were

• UAE Interactionwith Indian Industry

• Japan Interactionwith Indian Industry

• ArgentineanJournalists’ Interview

• Launchof ‘Greenco’Rating system for companies

The 20th edition of IETF would be held in New Delhifrom25-27February2013.

Focused Concurrent Shows

trade fairs

At the International Conference on Green Productivity Roundtable Session on Solid Waste Management


trade fairs

ThE IndIA ShOW wasrecently organized inSingapore, to promoteBrand India and providea plat form to Indiancompanies to showcaset he i r s t r eng ths andcapab i l i t i es i n bo thdeveloped and emergingmarkets. The show wasorganized by CII, jointlywith the Union Ministry ofCommerce&Industry,India,and theHighCommissionofIndiainSingapore.ItwassupportedbyIndiaBrandEquityFoundation(IBEF).Over90 companies representing a wide array of productsand servicesparticipated in the IndiaShow.

Concurrent events held during the event included athree days exhibition, one to one business meetings,the IndiaSymposium,ahigh levelCEOsdelegation,acultural eveninganda food festival.

TheShowwasinauguratedbyMrAnandSharma,UnionMinister of Commerce and Industry, India andMr LimHngKiang,Minister for Trade& Industry,Singapore.

IndiaandSingaporeneed toensure that theirbilateraltradeand investment is integrated intothewider India-ASEAN economic engagement framework. Thiswouldbe the key to their future success of their economicpartnership,saidMrSharma, inhis inauguraladdress.He pointed out that the Comprehensive EconomicCooperative Agreement (CEPA) signed by Singaporeand India in2005hasmore thandoubled thebilateraltradebetween the twocountries.

“Weare innegotiationsforaCEPAwiththeRepublicofKorea and similar agreements have been signed withMalaysiaandJapan.IndiaviewsSingaporeasthefirststepfor forgingbroadereconomic integration intoEastAsia,and remainscommitted to thisprocess,”headded.

“Last year our bilateral trade was about 30 billionSingaporedollars.Thisisareboundfromthedipduringthe recent global financial crisis and has exceededthe pre-crisis high in 2008,” said Mr Lim Hng Kiang.“Singapore’s investments into India have quadrupledtoalmost$13billionSingaporedollarssince2005,and

The India Show SingaporewearenowIndia’ssecondlargest foreign investor,after Mauritius. India isalso a major investor inSingapore,” headded.

M r B Mu t hu r aman ,President–Designate,CII,highlighted Infrastructureas a high potential sectorforSingaporecompaniestocollaboratewith India.

Theotherkeyareaoffocusshould be manufacturing,whe re many I nd i an

companies have demonstrated global excellence,supported by innovation, entrepreneurship and highlyskilledworkforce, he said.

MrChandrajit Banerjee,DirectorGeneral,CII, said theIndia Show aims to increase SME engagement byraisingawarenessonopportunities for IndianSMEs intheSingaporeMarket.

AmbassadorGopinathPillai,Chairman,iSAS,Singapore,and Dr TCA Raghavan, Indian High Commissioner toSingapore, also spoke.

A MoU was signed between CII and the SingaporeInternationalFoundation(SIF)launchingtheIndiaYoungBusinessAmbassadors (YBA)Programme.

Mr AnandSharma also released the IBEF report titled‘Innovations from India: Harbingers of Change’ duringthe inaugural session.

An 18 member CEOs delegation, led by Mr BMuthuraman,joinedthehighlevelMinisterialdelegationfrom India for theShow.

Coinciding with the Show, CII organized an IndiaSymposium,whichwasalso inauguratedbyMrAnandSharmaandMrLimHngKiang.Builtaroundthetheme‘Indovations-India’sideasfortheworld’,thesymposiumfocused on key areas of the Indian economy such asmanufacturing, servicesand infrastructure.

The India Evening included a dance performanceconceived and choreographed by the well-knownShovanaNarayan.TheguestsalsohadtheopportunitytotasteIndianwinesandspecialIndiancuisinepreparedbychefs flown in from theTajGroup in India.

Anand Sharma, Minister of Commerce and Industry, India; and Lim Hng Kiang, Minister of Trade and Industry, Singapore, inaugurating

the India Show, as B Muthuraman, President Designate, CII; Chandrajit Banerjee, Director General, CII; and Rajive Kaul,

Past President, CII, and Chairman, CII Trade Fairs Council, look on


tobeawareof theworld,ashehas tobuildadiverseglobal pool of people. Hence, the CEOs needs havealso changed: they do not need yes men, but thosewhoquestion them.”

Highlightingtheimportanceofpresentationofdetailstoaudit committees, Mr Parekh quoted the examples ofbanks and said that banks see petty frauds everyday.ButtheseneedtobereportedtotheRBIanddiscussedwith the audit committee. Anything that is written-offhas to be reported to the audit committee and theRegulator, he said.

Mr. Parekh recapitulated the imperatives for goodcorporate governance: scrutiny of stakeholders,self-imposed good corporate governance practices,shortening time for legislation change and revamp ofrules,appointmentofqualifiedpeoplewithdeepindustryexperienceas independentdirectors insteadofpeoplemerelybasedontheirreputation,effectivewhistleblowerpoliciesincompanieswithchecksandbalanceinplacefor them to reach theboard, etc.

Mr. Parekh said, “Good corporate governance is notaboutrulesorcompliance.Itisnotwhatyouleavebehindwhenyouleaveoffice.Itisaboutyourinnerconsciencethat tells you the difference betweenwhat you have aright to do and what is right to do. Its principles areunchanging. It isaboutvaluesbutvalueshaveavalueonly if the value is valued.”

ContinuingtheSeries,thenextappointmentwithleadersof corporate India was organised on 1 February inMumbai, withMr Rahul Bajaj, Past President, CII, andChairman,BajajAutoLtdas the key speaker.

Mr Bajaj elaborated on the need for Indian industryto grow and offer competition to the biggest globalcompanies.HestressedthatunnecessaryandexcessiveregulationwouldpreventIndiaIncfromreachingitsfullpotential.ClarifyingthatIndiaIncisnotagainstregulationentirely, he said, “We have to have some regulations,

ThE SUBJECT OF corporate governance isfundamental to our economy, financial markets andcorporateresponsibility;andithasalwaysbeenontopoftheagendaforCII.Waybackin1998,CIIreleasedcountry’s first-ever Corporate Governance Code forvoluntaryadoptionbycompanieswiththeobjectiveofestablishinghighstandardsofprobityandcorporategovernanceinthecountry.Throughtheyears,CIIhasadvocatedthatthebest-in-classcorporategovernanceisvoluntary-ofcompaniestakingconsciousdecisionsof going beyond the mere letter of law. In thiscontext,itreleasedtheVoluntaryGuidelinesforListed

Companies in 2009.

Under the aegis of the CIIGovernance Series, sessionsare organised with leaders ofcorporate India to understandtheir perspective on corporategovernance challenges. TheSeriesfortheyear2010-11wasinitiated on 13 December 2010in Mumbai with an address bythe forerunner in the domain,Mr Deepak Parekh, Chairman,HDFCLtd.

Urgingtheneedtowalkthetalk,Mr. Parekh advocated that theneed of the hour is to practicegovernance. He explained thatthere is no trade-off betweendoingwell anddoinggood.

Mr Parekh spoke extensively on the requirements forgood corporate governance. Beginning with the roleof the CEO, he said, “The role and expectation froma new age CEO has changed. In today’s post crisisworld,companiespreferapersonwithsoundstrategicthinking rather than aggression - CEOs need to bemorecerebralthancompetitive.ThenewCEOhasalso

corporateindiagovernance

“We need to practice good

corporate governance. There

is no trade-off between doing well and doing

good.” -DeepakParekhChairman,HDFC

CIIGOVERNANCES E R I E S


governance

but let entrepreneurship andinnovation flourish. Let us trustthat the majority of Chairmenand CEOs are good, not justinherently but because theirwealth and reputation dependson how well they and thecompany does. Let’s havefaith in them and then haveminimal regulation to catch thecrooks.”

Mr Bajaj gave the example ofthe captains of Indian industrywho are on the board ofdirectors of Bajaj Auto. “Theywill not stake their reputationby allowing me to do wrongunder their noses. They willfirst try and prevent me fromdoing anything wrong since,as directors, their reputationwould also be jeopardized. If

I still continue doing it, they would leave. And whenthreedirectorsleaveacompany,everybodywouldandmust ask questions.” He said that often the organicregulation imposed by market-pulls is a much moreeffective deterrent than that forcibly imposed by thegovernment.

Ultimately the market itself has a huge role in goodcorporate governance. “If the top management of acompanyiscorruptanddoingwrong,theshareholdersandcustomerswould leave thecompany.”

The third and last sessionof the tripartiteGovernanceSeries2010-11wasorganisedwithMrBMuthuraman,PresidentDesignate,CIIandViceChairman,TataSteelLtdon24February inMumbai.

MrMuthuramanaddressedtheissueofBoardcultureandsaid that there isdrasticneed forchange in thewayboardsfunction.“Howmuchofaboard’stimeisspent on taking care of compliance issues and howmuch is it is spent in creating a vision or debatingstrategy of an organization”, he questioned. Heasserted that there is anurgent need for companiestoallocatetheboard’stimeforstrategiesanddebate.There is also a need for boards of our companiesto be more dispassionate about who they appointon their board, hiring them based on their ability,expertise and variety.

Mr Muthuraman also underscored the need to focus

on process orientation, holdingitasamore reliableway togetwork done, as only hard workwill not achieve the goal. “Ifyoucanbuildprocessintoyourpassion,youcanachievebetterresults.”Theway todo this,heemphasized,isthrougheffectivecorporategovernance.

Mr. Jamshyd N Godrej, PastPresident, CII , and CMD,Godrej&BoyceManufacturingCompany, who chaired thesession, laid out the agendafor the discussions when hesaid, “Governance is all aboutopenness and directness. Themost critical thing is to speak

outonissues.Unlessopensocietieslikeourscontinuetospeakoutabout these issuesanddebateon themto bring about resolution, better understanding andfunctioning, we would be failing our businesses andcivil society.”

TheSerieswasheldinpartnershipwithKPMG.SpeakersfromKPMG,MrRichardRekhy,HeadofAdvisory,andMrNevilleDumasia,ExecutiveDirector in India, spokeat separate sessions on the DNA of good corporategovernance: succession planning in the family, aneffective board to add value, clearly defined roles forboardandmanagement, constructiveboardmeetings,robust strategic planning, focus on risk management,robust monitoring of business performance. The roleof management in enhancing corporate governancein a company was also highlighted. Good corporategovernanceisaboutmakingsurethatthereisastrongpartnership between management and board, theysaid.

The CII Governance Series was launched in 2005 todiscuss the latest trends on corporate governancewith visionaries of corporate governance with a viewto facilitate dissemination of the changing trends ofcorporategovernancethroughinteractivesessionswithcorporateleadersfocusingongovernance,accountability,transparencyethics,complianceand trust - fosteringaculture of good governance. Corporate leaders suchas Mr N R Narayana Murthy, Mr. Sunil Bharti Mittal,Mr K V Kamath, Mr Adi Godrej, Mr. Y C Deveshwar,MrUdayKotak andothers have addressed theSeriesin thepast.

“Why would a reputed member of a company’s

board stake his reputation by condoning corruption or bad corporate

governance in a company?”

-RahulBajajPastPresident,CII&

Chairman,BajajAutoLtd

“India needs to add process

orientation to its passion to grow

better.”-BMuthuraman,

PresidentDesignate,CII,&ViceChairman,

TataSteel


asserted that this should only serve as a referencepoint.Selectionofdirectors from thedatabaseshould,under no circumstances, be mandated, as this wouldlimit the democratic right of shareholders to choosetheir owndirectors.

On the issue of prescribing spend on CSR activities,industry felt that the proposal would encouragemanipulative tendencies. Instead ofmandating spend,concessions/incentivesforCSRactivitiesbythecorporatesector shouldbepromoted.

The proposed restriction on step-down subsidiaries,industrysaid,wouldseverelyaffectthegrowthofindustry,asitpurportstoreverttotheeraoftheclosedeconomy.Members pointed out that infrastructure developmentwould be severely impacted by a limit on the numberofstep-downsubsidiariesasJVsaddresstheparticularneeds of the business and enable corporates to pooltheir resources in the sector.

TheattentionoftheMinistrywasdrawntotheprovisionsof SEBI, IRDA and other regulatory bodies, whichrequire the creation of exclusive subsidiaries forregulated businesses. Limiting the number of step-downsubsidiariesshallrequirebigcorporatehousestosubstantiallywind up their business and decrease theinflowof foreign investment in thecountry, itwas felt.

On the recommendation of rotation of auditors, it wasput forth that frequent rotation shall deeply affect theknowledge base of the auditors and consequentlydetailedauditingprocesswouldsuffer.Membersstressedthat in case rotation of auditors is sought to breakthe alleged nexus between the management and theauditors, itcouldalsobeachievedbymakingauditorsresponsible and accountable for their work. Speakingagainst joint auditing process, it was pointed out thatjoint audits weaken the responsibility of the auditorsandwere timeconsumingandexpensive.

Mr D K Mittal, took note of the suggestions and re-assuredindustrymembersthattheirsubmissionswouldbeconsideredduringthefinalizationofthereviseddraftof theCompaniesBill.

governance

Mr MUrLI dEOrA,UnionMinister for CorporateAffairs, interacted withsenior representatives ofindustry on 17 February,in New Delhi, alongwith his team, to gainfirsthandunderstandingofindustry’s concerns. The focus was on the CompaniesBill2009andconvergencewiththeInternationalFinancialReportingStandards, in the interactionorganizedunderthe aegis of the National Foundation of CorporateGovernance,aPPPinitiativeoftheMinistryofCorporateAffairswithCII andotherorganizations.

The Minister espoused the cause of industry andconceded that the licensing process had createdsubstantial obstacles for industrial growth in the past.In the new transformed paradigm, all these obstaclesneed tobeeasedout, he said.

MrRPNSingh,UnionMinisterofState forCorporateAffairs, urged corporate India to come forward andexpand itsCSR initiatives.

Mr D K Mittal, Secretary, Corporate Affairs, invitedsuggestions on various issues of concern to industryvis-à-vistheCompaniesBillandconvergencewithIFRS.

Industry gave its feedback on the recommendationsof the Parliamentary Standing Committee on theCompaniesBill.

OntheissueofTenureofIndependentDirectors,whichissoughttobecappedundertherevisedBill,CIIstronglysuggestedthatnocaponthemaximumtenureshouldbe provided. In the international scenario also, suchrestriction is not acceptable, itwaspointedout.

Regarding the remuneration of Independent Directors,it was highlighted to the Minister that if managerialremuneration was linked with profitability, start-upventures and small companies would not be able toadequately remunerate their Board members. Thiswouldlimitthetalentthatsuchcompaniescouldattract.Members reiterated that payment of stock options toindependentdirectorsshouldbeallowed,andtheBoardmustbegiven the liberty todecideon it.

Members at also suggested thatminimum attendanceofdirectorsbeprescribed for retainingdirectorships.

While the participants welcomed the suggestion ofmaintainingadatabaseof independentdirectorseitherbytheMinistryoranyof the industrychambers, itwas

Interactive Session with Corporate India

Murli Deora, Union Minister for Corporate Affairs; D K Mittal, Secretary, Ministry of Corporate Affairs; R P N Singh, Minister of State for Corporate Affairs, and Petroleum & Natural Gas; and Sudhir Mital,

Addl Secretary, Ministry of Corporate Affairs


publicpolicy india & the world

CII And ThE Sasakawa PeaceFoundation (SPF) resumed thesecondphaseofthevisitsofIndianMembers of Parliament to Japan,whenfourMPsfromdifferentpartiesvisitedJapanfrom6–13February.ThemembersofthedelegationwereMr.RanjitsinhVijaysinhMohite-Patil(NCP),Ms. Shruti Choudhry (INC),Mr. Takam Sanjoy (INC), and Mr.TarunVijay (BJP),

Inthefirstphaseofthisprogramme,six missions were undertakenbetween November 2004 andFebruary 2008, involving 21 MPs.In the first round of the second phase, fiveMPs fromdifferentparties visited Japan inOctober 2009.

This year, the Indian MPs received an orientation onJapan’ssocio-cultural-politicalhistoryandenvironment,as also about Japanese etiquettes and customs,from Ms. Manjushree Chauhan, Professor, JNU, andChairperson, Center for Japanese and North EastStudies,priortotheirvisit.TheyalsomettheJapanesePoliticalAttache,Mr.NaokiIto,Minister,PoliticalAffairs,and Mr. Naoshige Aoshima, First Secretary, PoliticalAffairs, along with Mr. Gautam Bambawale, JointSecretary,EastAsia,MinistryofExternalAffairs,India;

Indian Members of Parliament visit Japan

for key inputs on the Indo-Japan relationship.

The programme in Japan was prepared to give thevisitorsexposure to thepolitical systemandeconomicenvironment of Japan, and also to enhance theirunderstanding of the economic and socio-culturalenvironment.

The programme commenced on 7 February witha traditional Tea Ceremony, followed by a visit theTokyo Stock Exchange. In the evening, the MPsv is i ted the Tokyo Metropol i tan GovernmentDisaster Prevention Centre to understand the city’spreparedness towards Disaster Mitigation and

Indian MPs, (L-R) Shruti Choudhry; Takam Sanjoy; Ranjitsinh Vijaysinh Mohite- Patil; and Tarun Vijay, with Shinzo Abe, former Prime Minister of Japan

Ranjitsinh Vijaysinh Mohite- Patil and Tarun Vijay with Yukio Hatoyama, former Prime Minister of Japan

Shruti Choudhry and Tarun Vijay, with Yoshiro Mori, former Prime Minister of Japan

Yasuo Fukuda, former Prime Minister of Japan, with Takam Sanjoy


��

��

��

��

��

��

��

india & the world

response forRescue,Relief andRehabilitation.

The following day, the delegation visited the MinatoIncinerationPlant,whichkeepsthislargecitycleananddisposes of waste, in the process generating usablematerials and revenue.

Later, the delegation met Mr. Yukio Hatoyama, formerPrimeMinister of Japan, and later,Ms.MakikoKikuta,ViceMinisterforForeignAffairs,toexchangemessagesof goodwill anddiscuss issues related to security andsocio-economicdevelopment.

In the evening, the delegation was accorded a warmwelcome by the Sasakawa Peace Foundation, whichwas attended by prominent business and politicalleadersof Japan.

Day threewasdevoted toa tourofDiet, theJapaneseParliament,andmeetingswithParliamentariansandthreeformerPrimeMinistersofJapan:Mr.Mori,Mr.Fukuda,andMr.Abe.Thiswas followedbyameetingwith theJapan-IndiaBusinessCooperationCommittee.

A strong desire was visible in all these meetings for

enhancingtradeandeconomictieswithIndiaandalsotofurtherimprovetradeandinvestmentbetweenthetwocountries, which share a strong cultural connect, andreciprocal respect. It also came out that although thelarger corporations are able to find their way in doingbusiness in India, JapaneseSMEs,whoareverykeentoworkwithIndia,needtobeguidedattheinitialstagein identifying suitable andcompatiblepartners.

The dinner hosted by Mr. Sanjay Panda, Charge d’Affaires of the Indian Embassy in Tokyo, was alsoattendedbythenewAmbassadorofIndiatoJapan,Mr.AlokPrasad,whohadarrived inTokyo the sameday.

On day four, 10 February, the visitors moved out ofTokyo to visit the Headquarters of Suzuki Motors,where they were received by Mr. Osamu Suzuki,Chairman & CEO, a great friend of India, whorevolutionized the lifeof the Indianmiddleclasswithhis small car.

The delegation visited the Shinto Shrine at Miyajima, aWorldHeritageSite,andHiroshima,on11February.


ThE vISIOn BEhIndAeroIndiahaschangedovertheyears. From showcasing defence aerospace productsfrom India and abroad in earlier shows, the event hasgrown in tunewith the aspirations of India to becomeamajor aerospace sector hub in theworld.

Therecordparticipationof675exhibitorsfrom45countriesacrosstheglobemadethe8theditionofAeroIndiathebiggestofitskindinSouthAsia.ThebiennialaeroshowwasorganizedbytheUnionMinistryofDefence,between9-13February inBangalore,andmanagedbyCII.

Major country level delegations from USA, France,Germany,UK,Russia,Italy,Belgium,andIsrael,besidesothers,visitedtheshowtoviewthebestinaviationandrelated technologies. The displays included militaryandcivilaircraft,vitalcomponentsforaircraftengines,avionics systems andsubsystemsandairfieldradars.CivilaviationhasbeenintroducedinAeroIndia 2011 along withAerospace sector.

S i g n i f i c a n t l y, t h enumber of domesticandinternationalaircraft

participating in this showsoared to 93, against 67in 2009.

HostState,Karnataka,whichhas earmarked over 900acres near the BengaluruInternational airport todevelopaerospaceindustries,participatedasanexhibitorforthe first time.

AeroIndia2011alsoprovidedimpetustotheindigenousindustry by facilitating better interaction with globalexpertsinaviationtechnologies,equipments,componentsand systems,withgreater focusonSMEs.

MrMMPallamRaju,UnionMinisterofStateforDefence,releasedaCII-KPMG report titled 'Unlocking thepotentialoftheIndianAerospaceandDefenceIndustry'on10FebruaryatAero India2011 inBangalore.

Thereportsuggestscriticalsuccessfactorsbasedonanalysisofthebestglobal practices in the aerospaceand defence industry. India’saerospace sector has emerged asthefastest-growingoneintheworld.Thereportgoesontosuggest thatthe nascent industry has now afootholdtocatapultintobecomingaleadingaerospaceanddefencehub.

It is an assessment of the global opportunity triggerpointsandcriticalsuccess factors formaking Indiaaparticipantintheglobalaerospaceanddefencesphere.

The CII-KPMG report indicates that, in the past

CII-KPMG Aerospace & Defence Industry Report

sectoralsynergies defence / energy

Dr. B S Yediyurappa, Chief Minister, Karnataka, and A K Antony, Union Minister of Defence, at the inauguration of Aero India 2011

in Bangalore, with (L-R) Chandrajit Banerjee, Director General, CII, Pradeep Kumar, Secretary, Defence, and Raj Kumar Singh,

Secretary, Defence Production

Aero India 2011

48 months, the Indian Ministry ofDefence has signed deals worthapproximatelyUS$24.66billionwithglobal integrators. It also goes ontosuggestthatdealsworthanother$41.99billionare in theprocessofgetting signed.

The report says that indigenizationof the industry and acquiring ofadvancedtechnologieswillfacilitateloweringofdependenceonimports.Issues of supply chain integration,technological infer ior i ty andfunding are some of the needs to

beaddressed.

Mr AKAntony,DefenceMinister of India, his inauguralspeechatAero India-2011hadstated that thedefenceexpenditure,currentlyat2.5%ofGDP,willincreaseoverthenexttwodecades.ThereportpresentsIndiaasoneof thebiggestmarkets foraerospaceanddefence.

Martin W Phillip, Global Head, Aerospace & Defence, KPMG; Pallam Raju, Minister of State for Defence; Robert P Garrett,

Auditor, KPMG New York; and Gurpal Singh, Deputy Director General, CII


CII, ALOnG WITh the Solar EnergyCentre, Ministry of New & RenewableEnergy, and the National RenewableEnergy Centre, Department of Energy,USA, organized a three day workshoponSolarAdvisoryModel(SAM)from15-17February inNewDelhi.

SAM is a computer programmedeveloped by the US Department of

Energy's National Renewable Energy Laboratory, thatfacilitatestheanalysisoftechnicalandfinancialfeasibilityofRenewableEnergy (RE)projects.

The workshop projected SAM as an appropriate toolfor theanalysisofasolarenergyproject, identification

Deepak Gupta, Secretary,

Ministry of New & Renewable

Energy

Solar Advisory ModelofresourcesforIndia–appropriateinputdata, includingweatherdata,financialassumptions,projectcosts,andsystemparameters,interpretationofresultsforanalysisofphotovoltaicandparabolictroughsolarenergysystems,and identification and use of resources for technicalsupportduringproject execution.

Deepak Puri, Chairman, CII National Committee on Renewable Energy, and Chairman, Moser Baer India Ltd; Dr B Bandyopadyay,

Director, Solar Energy Centre, MNRE; and Shannon Cowlin, Senior Project Leader, NREL

ThE CII COnFErEnCE on Cloud Computing, titled‘Concurrent Technologies 2011 – Reaping ThroughtheClouds’washeld inNewDelhion4February.Theconferencefocuseduponthemanagerialaspectsofthisnewformofdelivery,inascenariowhereanorganizationadapts this strategy tomanage its IT relatedactivities.

Good governance of any nation requires the decisionmakers to be sensitive and transparent to the needsof the common man. The use of cloud computing ine-governance will lead to meaningful and sustainableinclusivegrowth,statedMrShankarAggarwal,JointSecretary, Department of IT, UnionMinistry ofCommunications& InformationTechnology.

MrSanketAkerkar,MD,MicrosoftCorporation(India) noted that Cloud Computing isgaining momentum in India with some7000 applications by developers in Indiaon the Microsoft platform alone, and morethan2000commercialcustomersfor itsCloudservices in India.

Lt Gen (Retd) PC Katoch, Former Director General,Information Systems, Indian Army, discussed both theadvantagesandthechallengesinCloudadoption.Keysecurityissuesliketrust,multi-tenancy,encryption,andcompliancealsoneedtobeexaminedandaddressed,hewarned.

DrGaneshNatarajan,Chairman,CIINationalCommitteeon IT & ITES, and Vice Chairman & CEO, ZensarTechnologies, shared that the trend ofmoving towardsmanagedservices isprovidingcontinuedgrowth to the

Indian IT industry. He felt that SMEs woulddominatetheCloudmarketinIndiawith40%CAGRgrowth.

The first session of the Conference dwelledupon themethodologies for implementing aCloud roadmap in an organization, since theroadmapwill explore the implicationsofCloud

onhow firmscan look to leverageSaaSofferingsin themarketandtherisksandchallenges indoingthis.

The next session, with the theme ‘People and theCloud’focuseduponthevariousorganizationalinitiativesthat are required to driveCloud adoption and changemanagement.

The final session, ‘The Cloud and My Enterprise’,featureddiscussionsontheeconomicsandtechnologyfeasibilities of the Cloud across various businesssegments. TheROI onCloudwill vary across industrytype, application type and the long term businessstrategyof anorganization, said speakers.

Sanket Akerkar, MD, Microsoft (India); Dr Ganesh Natarajan, Chairman, CII National Committee on IT & ITeS, and Vice-Chairman

& CEO, Zensar Technologies; and Lt Gen PC Katoch, PVSM, UYSM, AVSM, SC, Former Director General, Information Systems,

Integrated HQ of Ministry of Defence (Army)

‘Reaping Through the Clouds’

sectoralsynergiesenergy / information Technology


sectoralsynergies infrastructure

“ThE MInISTry OFShipping is working ona new policy to promotecoastal shipping and isalso in the process offormulatingapackageforpromotingtheIndianshipbuilding industry” saidMr. G K Vasan, UnionMinister for Shipping,inaugurating CII’s Portsand Maritime Investment& Business Conclave’ inChennaion4February.

Mr Vasan said that theMaritimeAgendareleasedbytheMinistryrecently,whichisavisiondocument for thenext10years,hassetsomeimportantgoalslikeincreasingportcapacitytoaround3200milliontonnes-whichwillrequireaninvestmentofaboutRs. 3 lakh crore; to enhance the Indiantonnage four-fold to 43 million GT by2020, improving India’s share in globalshipbuilding to 5%, and increasing theshareofIndianseafarerstoatleast10%.

In the last two years, nearly 22 publicprivate partnership projects have beenawarded at a total investment of aboutRs. 9077 crores. To facilitate privatesectorinvestment,wehaveputinplacea favourable and investor friendly policy framework,which includes 100 % FDI in the shipping and portsector, saidMrVasan.

The Minister said that the Government is proposing todevelop Colachel Port, which has a deep draft and isstrategicallylocatedclosetotheinternationalmaritimeroutes.TheShippingMinistryhasbroughtout anew landpolicyandapolicy topreventmonopoly inports,headded.

Mr.KMohandas,Secretary,Shipping, shared that Indiahad recently reached a milestone of 10 million tonnesport capacity. The target is to reach 43 million tonnesby 2020, he added. The Secretary said that Indianeeds huge private sector investment to enhance thecommercial development of its ports. Indian tonnageneeds to be stronger than the present value. Also thepresent comparison of tonnage handing of major vsminor ports which is 2:1 has to become 1:1 by 2020,

‘New Policy on Coastal Shipping Soon’

‘Twenty-two public

private partnership

projects have been

awarded at a total

investment of about

Rs 9077 crores in

the last 2 years.’

– G K Vasan

which is the target set by theShippingMinistry,headded.

Achievement in the port and maritimesector is good, as per the 11h plan.Factors like deregulation of tariff,fiscal policy proposed for enhancingcapacity andpromotingmanufacturingin ship building and other port relatedsectors will be looked into in the 12thyear plan, said Mr. B K Chaturvedi,Member, PlanningCommission.

Mr. N Kumar, Past President, CII,Chairman, CII Institute of Logistics, andVice Chairman, The Sanmar Group,observedthatIndia’seconomyisgreatly

depended on external trade, which hugely dependson ports and shipping sector. We need world classinfrastructure,hesaid.

Mr. S Hajara, Chairman, CII National Committee onShipping,andCMD,TheShippingCorporationofIndiawanted the government to accord more importanceto enhancing and developing ports and the shippingsectors.EXIM tradeaccounts for40%ofourGDP,hepointedout.

Presenting the stakeholder’s perspective, Mr. RajivAgarwal,CEO&MD,EssarShipping,Port& LogisticsLtd.urgedthegovernmentforaccesstoforeigncurrencyfunds,loansandalsoexemptionofMAT.Mr.BSridhar,Vice Chairman, CII Institute of Logistics and Director,Bengal Tiger Line (India) Pvt Ltd pointed out two keyissues: Infrastructure, and fiscalmeasures, in termsofaccess to competitive fundsand relief in taxes.

Rajiv Agarwal, CEO & MD, Essar Shipping, Port & Logistics Ltd.; S. Hajara, Chairman, CII National Committee on Shipping, and CMD, Shipping Corporation of India; B.K Chaturvedi, Member, Planning

Commission; G.K. Vasan, Union Minister for Shipping; and N Kumar, Past President, CII, Chairman, CII Institute of Logistics, and Vice Chairman, The Sanmar Group

ports and Maritime Investment & Business Conclave


TErMInG ThE rEGULATOryRe form B i l l as “work inprogress,” Dr. Montek SinghAhluwalia, Deputy Chairman,PlanningCommission,saidthatdetaileddiscussionshavetakenplace within the governmentand a final decision on theRegulatory Reforms Bill willbe taken soon. He appealedto the private sector to sharetheirviewsontheproposedbillurgently, so that governmentcouldtakeaholisticviewbeforeit is introduced. Dr Ahluwaliawas speaking at the NationalRegulatoryConclaveorganizedby CII on 15 February in NewDelhi.

The Bill, which encompasses principles critical tothe institutionaldesignof regulation,would,hesaid,addressthemanygreyareasinthepresentregulatorystructure.Hespeciallymentionedtheaccountabilityofregulators toParliament,which is lackingatpresent.Healsoexpressedconcernovertheunevenapproachadoptedbyregulatorswithlackofcross-learningsandnosharingofknowledgeacrosssectors.Heexpressedtheview that suitablepeople, includingexperts fromtheprivatesector,shouldbeallowedtoapplyforthepost of regulator.

The Government is keen to bring transparency inprocurement,includingPPPcontracts,andhasrecentlyconstituted a committee which is contemplating for acommon legislation, headded.

Mr. Dhanendra Kumar, Chairman, CompetitionCommission of India (CCI) threw light on the role oftheCommissionwhichwas set upby thegovernmentin 2003 tohelp frameamore robust andover-archingregulatory framework in the country. Being a youngagency(comparedto126suchbodiesaroundtheworld),it already has about 150 cases under its purviewwithadequatebuilt upcapacity and skilledprofessionals.

He focused on the underlying theme of competitionwhichenvisagesconsultationbetweensectoralregulationand CCI, delineating specific areas of responsibility.Clear distinction prevails between sectoral regulators

National Regulatory Conclaveand CCI, with the latter havingthe power to monitor the ex-postperformancebasedon theprevalent behavioural marketconditions.Hefeltthattheentryofprivateplayersininfrastructuredevelopmentwouldgoalongwayinbuildingcapacity,offeringmoreandbetterchoicestoconsumers,increasinginvestmentinflowandultimately improvingefficiency.

Mr.GajendraHaldea,Advisor tothe Deputy Chairman, PlanningCommission, emphasized uponthe need for revamping thewhole infrastructural regulatoryframework as it has acquired anew dimension after the entry

of private players across sectors. Contrary to popularperception,regulatorsinsomeoftheleadingcountriesintheworld,includingUKandUSA,arenotindependent,he said.

Mr.Haldeastressedthatcommonoverarchingprinciplesneedtobeappliedacrosssectors.Aconsensusshouldbeevolvedtobuildgoodandsoundcompetitionwhichis necessary for the next stage of PPP and fundinginfrastructuredevelopment in thecountry.

Mr. GV Sanjay Reddy, Chairman, CII National Councilon Infrastructure, stated that while there is no doubtthat an independent regulatory framework is critical tobalance the interest of all stakeholders andbuild theirconfidence, the approach so far adopted by varioussectorsininfrastructureisunevenandhenceworrisome.Thereareseveralcomplexissueswithregardtotheirroleandfunctions,autonomy,empowerment,accountabilityandtheirinterplaywithotherinstitutions.Inthiscontext,the Regulatory Reforms Bill is an extremely importantinitiative of the Planning Commission to improveregulatory effectiveness in the Indian InfrastructureSector, he said.

Mr.VinayakChatterjee,Chairman,FeedbackVenturesPvtLtd,stressedontheneedtocreateauniformandeffective regulatory framework on an urgent basis.He said that both industry and civil society are islooking to the government with huge expectations inthis regard.

Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission with G V Sanjay Reddy, Chairman, CII

National Council on Infrastructure and Vice Chairman, GVK Power & Infrastructure Ltd

infrastructure


USA

SMEsformthebackboneof both the Indian andUS economies. Creatinga favourable businessand policy environmentfor SMEs is crucial tostrengthening economicrecovery, st imulat inggrowth and creating jobs in both countries, said MrUdayKumarVarma,Secretary,MinistryofMSME,ataninteractionorganisedwithaSMEdelegationfromUSA,visitingIndiaalongwithMrGaryLocke,USCommerceSecretary, inNewDelhi on7February.

CallingformoreintenseengagementbetweenindustryinIndiaandtheUS,withaspecificfocusonenterprise-to-enterprise cooperation, Mr Varma named ICT andDefence Procurement as priority sectors for UScompanies, while exploring commercial opportunitiesin India.

SMEs represent a good low-investment, high-returnopportunity. There are many synergies between thetwosides,saidMrVarma,pointingoutthatIndianSMEsare flexible, reliable, quality conscious and adaptable,and Intellectual Property Rights are respected in Indiaaswell.

MrDaleTasharski,CommercialCounselor,Embassyofthe United States in India, said that the next phaseof growth in Indo-US bilateral economic relations willcome from SMEs. The US Department of CommercehasinitiatedaGrowthinEmergingMetropolitanSectors(GEMS)programmetoprovideimpetusand,takeIndianand US businesses to the next level of partnership,he said.

Mr Nalin Kohli, Chairman, CII SME Task Force onTechnology,InternationalCooperationandGovernmentProcurement,describedtheSMEinitiativeasa'win-win'opportunity forbothsides. Itenriched theglobalvaluechain by encouraging companies to explore beyondthewell-knowncities.

Japan

A New Global Cooperation (NGC) scheme has beenlaunched by CII and the Association of OverseasTechnicalScholarship(AOTS),Japan,tostrengthentiesbetween IndianandJapaneseSMEs.

TheschemewillbeamodelcaseofHumanResource

Indian SMEs Strengthening Global Ties

Development for developing countries with the activeengagement of SMEs, taking Indian and Japanesebusinesses to the next level of partnership, said MrKazuoKaneko,President,AOTS,Japan,ataninteractionorganised by CII in New Delhi on 17 February. HeoutlinedthefivefocusareasoftheschemeasBusinessEmpowerment, Green for Growth, Creating GreenEnergy, Globalisation of Japanese Businesses, andBusinessValueBreakthrough.

Also present on the occasion was Mr Yasumi Suzuki,GeneralManager,AOTS,NewDelhi.

Mr Gurpal Singh, Deputy Director General, CII, saidthe NGC scheme will complement the ratification oftheComprehensive Economic Partnership Agreement)between IndiaandJapan,as the5key featuresof thescheme are aligned to meet the needs of industry inboth countries.

Notingthat, inAOTS,CIIhasafoundanaturalally,hesaid theNGCinitiativepresentsa ‘win-win’opportunityfor both sides. It will enrich the global value chain,and encourage Indian SMEs to understand the latesttrendsofJapaneseSmallBusinesses,enter Japanesem a r k e t s a n dexplore businessopportunities.

C I I has beenworking closelywith AOTS overthe years. It hasorganised varioust echn ica l andmanagement training programmes on a collaborativebasisforIndianSMEsasperindustryneedsatdifferentlevels. The training programmes offered by AOTSdisseminateJapaneseManagementmethods/techniquesamong Indianorganizations.

Kazuo Kaneko, President, AOTS; and Gurpal Singh, Deputy Director General, CII

Dale Tasharski, Commercial Counselor, US Embassy: Uday Kumar Varma, Secretary, Ministry of MSME; Nalin Kohli, Chairman CII SME Task Force on Technology, International Co-operation & Govt Procurement,

and Amarendra Sinha, Jt Secretary, Ministry of MSME

sectoralsynergies manufacturing services


COnTEnT IS ThE major driverin today’s world of media andentertainment: be it television,music,animation,gaming,radio,print,filmsorcomics.Withrapidinnovation in Communicationsand Information Technology,newer media platforms haveemerged, resulting in enormousopportunityforContentcreators.In an endeavor to address anddiscusssomeofthekeycontent-relatedissuesincludingthoseofthe New Media, CII organisedtheContent Summit: Adapting from Wired to Wireless on 18February inNewDelhi.

Content has to be balancedwith the prevalent diversity inthe country, the existence of multiple channels, thesuitability and tastes of different target audiences andthe nuances of the regional media, said Ms AmbikaSoni,UnionMinisterforInformation&Broadcasting,whowas the Chief Guest. As the volume of programminghas increased, self-regulation is the way forward,keeping inmind the fact that televisionwasbecomingincreasingly localized, she said. The Minister pointedout that a self-regulatory mechanism would ensurean element of objectivity in viewing and addressingissues relating to content. This body will deal withcomplaints frompeopleon televisioncontent.

Ms Soni announced that the newly proposedBroadcastingContentComplaintsCouncil (BCCC)willhave 13 members, including broadcasters and civilsociety representatives, headed by a retired judge oftheSupremeCourtorHighCourt.Suchabodywouldenableaprocesstoviewcontentthroughanappropriatemechanism, she felt.

On digitalisation of Cable TV broadcasting, the I&BMinistryhasacceptedtheTRAIroadmapandnewsunsetdateswillbeannouncedfordigitalisationinthecomingmonths.TheI&BministryhassubmittedproposalstotheFinanceMinisterrelatedtoreductionoftaxesfordigitalheadends, set top boxes and rationalization of taxesincluding income taxholiday forprospective investors.

CII Content Summit Adapting from Wired to Wireless

DrJSSarma,Chairman,TRAI,inhisspecialaddress,maintained that the newmedia era would have lessregulation and the price controlmechanismwill endsoon,empoweringtheconsumers.HesaidthatTRAIis gearing up to comeupwith recommendations onthe advanced 4G technology by June this year. Aconsultation paper on 4G will be floated soon fordiscussionwith the industry.

Industry is not keen on a Broadcast regulator, andthe government is ready to give a chance to a selfregulation mechanism. If it works well, India wouldhave designed a unique way to tackle broadcastregulation, observed Mr Raghu Menon, Secretary,I&B. He also said the exisiting Cable TV Act will berehauled completely keeping the changingmedia inmind. The Cinematograph Act will be amemendedtoo, and films will be censored according to viewercategories of different groups, he said.

In his inaugural address Mr Amit Khanna, Chairman,CIINationalMediaandEntertainmentCommittee,andChairman,RelianceBIGEntertainment,saidtheindustryhas thepotenital to grow from the current $12billionto$100billioninthisdecade.MrChandrajitBanerjee,DirectorGeneral,CII,said industrywould like tohavean investor-friendly framework that keeps inmind thepaceof changeof the newdigitalmedia regime.

Chandrajit Banerjee, Director General, CII; Ronnie Screwvala, Co-Chair, CII National Committee on Media & Entertainment, and Chairman & CEO, UTV Software Communications; Ambika Soni,

Union Minister of Information & Broadcasting; Amit Khanna, Chairman, CII National Committee on Media & Entertainment, and Chairman, Reliance BIG Entertainment; and Marcel Fenez,

Global Leader Entertainment and Media Practice, PwC

sectoralsynergiesmedia & entertainment


towardsexcellence competitiveness

Green Energy Technologies

Concurrent to IETF2011, theCII AVANTHACentre forCompetitiveness for SMEs organized a unique eventcalledi-GETIndia2011on11-12February,tointroduceNew Product Development focusing onGreen EnergyTechnologies toMSMEs.

Inauguratingtheevent,Mr.SureshPrabhakarPrabhu,MP,saidthegrowingemphasisongreentechnologieswouldleadtoanincreaseindemandforgreenproducts,therebycompelling companies to innovate. Urging MSMEs totake advantage of this opportunity, he suggested theuseofeco-friendlymethodsforelectricitygenerationvizsolar-thermal,wind, andgeo-thermal etc.

Root Cause Analysis for Problem Solving

RootCauseAnalysis(RCA)aimsat identifyingtherootcauses of problems or incidents, predicated on thebelief that problems are best solved by attempting tocorrectoreliminaterootcauses,asopposedtomerelyaddressing the immediately obvious symptoms. Bydirecting corrective measures at the root causes, it is

hoped that the likelihood of problem recurrence willbe minimized. RCA is considered to be an iterativeprocess, and a tool of continuous improvement. AtrainingprogrammeonRootCauseAnalysiswasheldon17February inNewDelhi.

Aligning HR with Organisation Strategy

As HR strategy has become central to achievecompetitiveadvantage,itiscriticalforthemanagementof Human Resources to be in perfect fit with themanagement of the organization as a whole and itsstrategic plans. The workshop on ‘Aligning HR withOrganization Strategy’ on 23 February in Chandigarhexplained the skills needed by HR functionaries toimprove HR decision-making, people outcomes,processes, customer outcomes, and link them withthe business results of the organisation.

Lennart Jonsson, Executive VP and CTO, Eaton Corporation, Suresh Prabhakar Prabhu, India; Dr Arun Jaura, Chairman, CII NPD Steering Committee, and T Hongo, Head-Green Finance, JBIC

Workshop on Aligning HR with Organizational Strategy

Training Programme on Root Cause Analysis


CII Godrej Green Business Centre

towardsexcellencegreen business

Green Company Rating System launched

Mr Suresh Prabhu, Chairman, Council for Energy,EnvironmentandWater,India,andformerUnionPowerMinister, launched the Greenco (Pilot) Rating systemfor companies, the first of its kind in theworld, on 10February inNewDelhi.

The Greenco Rating will rate companies on the eco-friendliness of their activities and products, and willadopt a cradle-to-cradle approach for evaluating theentire activities of the company, including the supplychain. The System is expected to act as a milestonefor companiespursuinggreen initiatives.

The sectors to be covered under this system includeAutomobile&Engineering,Cement,Fertilizers,FMCG,Glass, Hotels, Iron, Steel & Non Ferrous Metals, IT,Hardware / Electronics, IT Services, Pharmaceutical &Chemicals, Pulp & Paper, Refineries & Petrochemicals,ServiceSector,andTextiles.

Asmanyas45companieshavealreadyexpressedtheirinterest tobeapart ofGreencoPilotRating.

Earlier, CII had initiated a voluntary programme titled‘Mission on Sustainable Growth’ to seek voluntarycommitments from companies to reduce the intensityof theiremissionsandoptimallyusenatural resources.Taking this initiative forward, CII has created acomprehensive rating to analyses the performanceof companies on the greenness of their operations. ASteeringCommitteeinvolvingindustryexpertshasbeenconstituted for developing a transparent and uniquerating system for companies. The abridged referenceguide for thepilot ratinghasbeenpreparedbasedonthe suggestionsprovidedby this committee.

Water India 2011

‘WaterIndia2011’,heldon11-12FebruaryinNewDelhi,focusedonindustrialwaterandwastewatertreatment,municipalwatersupply,waterpurification technologiesandwater savingproducts.

Water India 2011 shared national and internationalexperiences in water resource management, exploredtrends in infrastructure development and technologiesin municipal water supply and waste water, industrialwater and waste water management, promoted bestpractices in technology applications - industry, waterpurification technologies, and showcased innovativewatersavingproducts for thedomestic,municipalandagriculture sectors, through a concurrent exhibition. ACEOsMeetonWaterwasalsoheld.

LEED 2011 for India

Ms Lynn Bellenger, President, ASHRAE, Dr Prem CJain, Chairman, IndianGreen BuildingCouncil (IGBC)and Mr Mark MacCracken, Chair, US Green BuildingCouncil, launched the LEED (Leadership in Energy& Environmental Design) 2011 Green Building RatingSystemfor IndiaatACREXIndia2011,on24FebruaryinNewDelhi,signifyingamajormilestoneinthegreenbuildingmovement in India.

Themajor featuresof LEED2011are:

•Enhanceenergyandwater efficiencybaselines

Vincent H Pala, Union Minister of State for Water Resources & Minority Affairs; Dhruv Vijai Singh, Secretary, Union Ministry of Water Resources, and Chandrajit Banerjee, Director General, CII

Launch of LEED 2011 Green Building Rating System for India

Suresh Prabhu, Chairman, Council on Energy, Environment and Water, Jamshyd N Godrej, Past President, CII and Chairman, CII-Sohrabji

Godrej Green Business Centre, and L S Ganapati, Chairman, Assessors Panel, Greenco Rating System


• Promotenaturally ventilatedbuildings

• Encouragepassive technologies

• Keep in tunewith local regulationsand standards

• Adopt the latest versionsof standardsandcodes

LEED-India, which was launched in 2007, receivedoverwhelming response from industry. Based on thefeedbackandexperiencesoftheimplementedprojects,the ratingsystemhasnowbeenupgradedandwillbecalled ‘LEED2011 for India’.

TheGreenBuildingMovementinIndia,pioneeredbytheCII-IGBC,hasmadesignificantinroads.Today,Indiahasover955 registeredgreenbuildingprojectswitha footprintofover606millionsqft.andisamongstthetop3countries tohavea largegreenbuilding footprint.Thishaslargelybeenpossibleduetoinvolvementofvariousstakeholdersofthebuildingsector–architects,builders,developers,manufacturers,consultants,etc.CII-IGBC’svarious rating systems, covering homes, commercialbuildings,commercialinteriors,existingbuildings,factorybuildings,schools,SEZand townships,haveemerged

as thenational choiceof the stakeholders.

CII-IGBC Students Chapter

The CII-IGBC Students Chapter was launched inBengaluru on 12 February. The chapter will bringawarenessamongengineersandarchitectsontheneedand importanceofgreenbuildings.

Syed Mohamed Beary, Chairman, IGBC Karnataka Chapter; Syed Kirmani, former Indian Cricketer, Chandrashekar Hariharan,

Member, IGBC, and CEO, BCIL; and Dr Prem C Jain, Chairman, IGBC

green business


CII-Suresh Neotia Centre of Excellence for Leadership

towardsexcellenceleadership

NLP for Organisational Communication

NLP orNeuro-Linguistic Programming is an advancedparadigm of Communication Protocols and LearningStrategyusedoptimallyacrossfunctionsandoperationsinthefieldsofbusinesscoachingtoday.NLPissuccessfullyused in professional business skills development incritical areasofbusiness.

The workshop on 16 February explained the use ofsome of themajor tools/techniques of NLP for day todayfunctions/operations,suchasMilton&Metamodels,Presuppositions,Matching/MirroringandSensoryAcuity,to manage challenging behavior, build and maintainrapport, resolve conflicts and prepare a functionaldevelopment plan in relevant areas. NLP is also usedasa tool in leadingandmotivatingpersonnel.

Critical Chain Project Management

DevelopedbyProfEliyahuM.Goldratt,theCriticalChainproject network tends to keep resources levelly loadedbut requires them to be flexible in their start times andquickly switch between tasks and task chains to keepthewholeprojectonschedule.Itisamethodofplanning

andmanagingprojects thatputs themainemphasisonthe resources required toexecuteproject tasks.

TheworkshoponCriticalChainProjectManagementon18FebruaryhelpedtoenhanceskillsinAdvancedProjectPlanning, Critical Path Method and PERT, and CCPMCoreTools,etc.TheWorkshopcoveredprojectplanning,deployment of CCPM as an advanced PM tool, anddevelopingexecution/pipelineschedulingcompetencies.

Strategy to Action

This workshop, held on 22-23 February, focused onthe key differentiator between a high performanceorganization and its competitors in the ability to linkstrategy, people and operational processes to thecorporate vision, and significantly enhance the abilitytooptimally executeanddeliver results.

Quality Maintenance

The mantra today on Quality Maintenance is ‘Qualityas described by the customer at the lowest cost.’The TPM principle of ‘good machine with good inputparametersproducesgoodproducts’isanidealsolution.The workshop on 25 February focused on achievingzero customer complaints, reducingprocess rejection,orienting all employees towards follow-up of qualityassurancestandards,buildingoperatorassurancequalityand reducingcostof quality.


Current Requirements

AllmanufacturersinEuropeandimportersofchemicalsmust identify risks linked to the substances theymanufacture (or import) andmarket. For substancesmanufactured or imported in quantities specified bythe Regulations (at present 1000 tonnes for mostchemicals, which will be gradually reduced to 1tonne per year per company as per the timetable),manufacturers and importers need to demonstratethat they have appropriately done so (identified therisks) by means of a ‘Registration Dossier’ whichmust be submitted to the ECHA. The ECHA checksthat the dossier complies with the Regulation andthat adequate information is provided. If required,additional testingmaybe necessary to generate theproduct (chemical substance) information.

Future Requirements

An authorisation system will be in place to ensurethat Substances of Very High Concern (SVHCs) areproperly controlled, and progressively replaced bysuitablealternativesubstancesortechnologies,wheretheseareeconomicallyandtechnicallyviable.Wherethis is not possible, the use of theSVHCsmay onlybe authorized where there is an overall benefit to

OnE OF ThEmajorrecentdevelopmentshavingafar-reaching impactonglobal trade, is thepromulgationofREACHregulationsbytheEuropeanUnion.REACH,theEuropeanRegulationonRegistration,Evaluation,Authorization and Restriction of Chemicals, cameinto force on 1 June 2007. Themain aim of REACHis to ensure protection of human health and theenvironment from the risks that can be posed bychemicals intheirsubstanceformaswellasthroughtheirpresenceinproducts.Ithastwomainobjectives:

• Makeindustryprovideappropriatesafetyinformationto their users

• Authorize the European Union to take additionalmeasuresonhighlydangeroussubstances,whereit estimates a need.

Forexample,sixsubstancesofveryhighconcernwillbebannedwithinthenextthreetofiveyearsunlessaspecific authorizationhasbeengranted to individualcompanies for their use.

REACH poses severe restrictions for market accesswithintheEUblockcountriesandisaclassicexampleof technical regulationsbottle-necking trade throughnon tariff barriers. The EU REACH programme hastriggeredresponsesfromseveralothercountries,whohaveeither launchedsimilarregulationsorare intheprocess of doing so.

How Does REACH Work?

Each EU member country has to ensure that thechemicalsubstancesmanufacturedintheir territoriesorimportedbythemareregisteredinacommondatabasemaintained in the EU.

A Forum has been created under the aegis of theEuropean Chemicals Agency (ECHA) which bringstogether Member States enforcement authorities ina formal framework.

Enforcement on manufacturers from other countriesexporting to Europe is achieved by requiring theappointment of an OR (Only Representative) whoundertakesalllegalliabilitiesonbehalfoftheexporter.

A10year timetablehasbeenpublished forbringingthe various provisions in force,with clear deadlines.

REACH Compliance: Challenging Times

towardsexcellence quality


and components, plastic products, etc.

Thus, the implications on the export of articles shallbe two-fold:

•Manufacturers and exporters of articles shall havetolookforalternativesaferchemicals;whichwouldamount to incorporating major changes in theirproduct profile

• The search for safer substitutes that are notreadily available will involve a lot of R&D, trialsand expense

These implications are further compounded by thefact that the SVHC list shall keep increasing withtime. It is eventually expected to contain 500 to 600substances.

ExportershavetoappointanOR(OnlyRepresentative)in the destination country to undertake both theregistration formalities as well as legal liability onbehalf of the exporter.

CHEMEXCIL, the Chemicals & Cosmetics ExportPromotion Council, has set up a REACH help deskand a web portal to provide the latest updates toexporters.Inordertoprovideprofessionalassistance,CHEMEXCIL has appointed Sustainability SupportServices, (Europe) AB. Sweden, (SSS) to representits member-exporters in European Union as ‘OnlyRepresentative’. This arrangement has helped over700Indiancompaniesgothroughthepre-registrationand registration deadlines.

Through a MoU with SSS, the CII Standards andConformity Assessment Task Force has decided tolaunch a nation-wide capaclty building programmeacrossvariousexportsectors(leather,garments,autocomponents, etc) to strengthen the supply chain inmeeting REACH and other similar regulations. As afirststep,expertsfromtheEuropeanChemicalAgency(thenodalorganizationforREACH)havebeeninvitedas key speakers in two back to back symposiumson REACH Regulations and their impact on Indianindustry, inDelhi andMumbai.

The symposiums,beingorganized jointly byCII andthe Union Ministry of Chemicals and Fertilizers, willbe the first face-to-face interaction of ECHA officialswith Indian industry and other stakeholders. Thiswill be followed by extended outreach programmestargeting impacted sectors over the next year. Asdeadlines are fast approaching, the symposiumswould provide an ideal forum to obtain clarificationsand enhance understanding on coverage aswell ascompliance issues.

quality

society in using the substance.

In addition, EU authorities may impose restrictionsonthemanufacture,useorplacingonthemarket,ofsubstances causing an unacceptable risk to humanhealth or the environment.

Starting from June this year, REACH will also coverarticles (products) inwhich the identifiedSVHCsarepresent above a concentration limit of 0.1% weightbyweightandabove1tonneperyear.AnycompanysupplyingarticlestoEurope,whereSVHCsarepresentmustsubmitanotificationtoECHA.Intheabsenceofdetailedknowledgeabout thepresenceofchemicalsin industrial use materials, exporters would find itdifficult to determine whether they should notify orrisk actions for incorrect / non-declaration.

What Happens on Non-compliance?

The Member States authorities are responsible forenforcementthroughinspectionsaswellaspenaltiesincaseofnon-compliance.Thus,eachMemberStatehas already designated the competent authoritydealingwith REACH enforcement.

Authorities can select substances for a broadersubstanceevaluationtofurtherinvestigatesubstancesof concern.

The type of penalty varies among the countries.In general, the Member States have systematicallyincluded fines in their penalty systems, as acontinuation of their existing systems. Other typesof penalties include injunctions (including marketwithdrawal),prisonsentences,andname-and-shamemethods,where non-compliance ismade public.

Impact on Indian Exporters

The major impact on Indian exporters of chemicalsubstancesso far is thehighcostof registration,byway of sharing data generation costs with the leadregistrants, running intomillions of Euros.

Exporters of chemical preparations to Europe alsohave to bear the burden of getting the ingredientsubstances registered (again at high cost).

Regarding the impact of REACH on Indian articleslikeapparel, leatherarticles,electricalandelectroniccomponents, auto components, handicrafts, etc,being exported to Europe, there is a grey list ofvery toxic substances. These SVHCs shall attractenhanced control and regulation when used formanufacturing of articles like apparel, leatherproducts, auto components, dyes, paints, electricalandelectroniccomponentsandproducts,metalparts


Andhra Pradesh Technology Development and Promotion Centre

Capacity Building on IPR

CII-APTDC has been working with theNationalEngineeringIndustries(NEI)Ltd,Jaipur,forthelastoneyearontheprojectof‘BuildingBestPracticesofIPManagementandsettingup an In-house IP Cell.’ This is an initiative of the CIINationalCommitteeof IPOwners forCapacity-buildingon IPR.Themainobjectiveof theproject is to:

• Develop IPawarenessacross theorganization

• Provide training on patent drafting, filing and otherIPRprocedures for India,USandPCT

• Createan in-house IPR resourcepool

• Developan IPPolicy for theorganization

• Leverage IPasa competitive tool

The project will endwith the successful launch of theIPRcell atNationalEngineering Industries Ltd.

Sofar,CII-APTDChasconductedtwotrainingprogrammesandone IPRawareness session in theorganisation. Italso conducted an IP audit to analyse the presentsituation and propose a roadmap for IPR activities forthefuture.Itwasagreatexercisefortwodays,involvingpersonnel from all the departments in providing data,inputsanddiscussionsonvariousprocesses,productsandotheractivities.AdetailedIPAuditReporthassincebeen submitted to thecompany.

Intellectual Property Rights

IP Facilitation for MSMEs

CII,withthesupporto f t he Un i onMinistry of Micro,Small & MediumE n t e r p r i s e s ,has establishedan In te l lec tua lP r o p e r t yFacilitation Centre(IPFC) in Indore,Madhya Pradesh,undertheNationalManu f a c t u r i n g

Competitiveness Programme (NMCP) Scheme of theMinistry.

ThecellwasinauguratedbyMr.SVijayKumar,Director,MSME,andMr.SandeepNaolekar,ViceChairman,CIIMPStateCouncil, on22February.

The Cell will meet the Intellectual Property ServicerequirementsofMSMEsinIndore,andalloverMadhyaPradesh.Equippedwithstateof theart IPSearchandIPServiceSupportfacilities,theCellwillenableMSMEsto understand, identify and use Intellectual Propertyfor competitive advantage. Itwill also provide servicessuch as IP protection, IP awareness and training, aswellascounsellingandadvisoryservicestohand-holdMSME to identify IP in their day to day business, andto leverage it forbusinessadvantage.

The IPFCwill draw expertise fromCII NewDelhi, andwillbesupported indaytodayoperationsthroughtheCII IPFacilitationCells inHyderabadandChennai.

Nanotechnology

Interactive Sessions on Nanotechnology

CII, inpartnershipwith theDepartmentofScienceandTechnology, organized a series of interactive sessionsonNanotechnologywithDr.AnatolyChubais,CEO,TheRussianCorporationofNanotechnologies(RUSNANO),inMumbai,Bangalore andNewDelhi, on 7, 9 and10February respectively.

Dr. Chubais gave an overview of RUSNANO focusingon the terms of financing, support for co-investors,investment,projectselectionmechanism,typesofprojectsinvestedinto,theoverallbudgetofRUSNANO,andhowit is supporting theNanotechnology industry.

CIImembersinallthethreecitiesexpressedinterestinpartneringwithRUSNANO.

S Vijay Kumar, Director, MSME; and Sandeep Naolekar, Vice Chairman, CII MP

State Council, inaugurating the IP Cell in Indore

Session on Nanotechnology in New Delhi


Tamil Nadu Technology Development & Promotion Centre

Workshop on Food Safety

The Michigan State University’s(MSU) Institute of InternationalAgriculture partners with CII fortheir Indian Horticulture Development Alliance (IHDA)programme.Underthisinitiative,athree-dayworkshoponFoodSafetywasorganizedon2-4FebruaryinChennaithroughtheCII-TamilNaduTechnologyDevelopmentandPromotionCentre (TNTDPC).TheNationalHorticultureMissionalsopartnered thisprogramme.

The workshop brought together the United StatesAgency for International Development (USAID), MSUand IHDA for a training programme on intermediate-levelrequirementsforfoodmanufacture.Theworkshopfamiliarized the participantswith the intermediate levelrequirements for food manufacturing, as defined bythe technicalworkinggroupof theGlobalFoodSafetyInitiative (GFSI). These include good manufacturingpractices and good hygiene practices, as well as theprinciplesofhazardanalysisandcriticalcontrolpointsofthefoodsafetymanagementsystemrecognizedbytheCodexAlimentariusCommissionastheglobalstandardfor foodmanufacture.

These intermediate-level requirements built upon thebasic-level requirements for food manufacture whichwere covered in a previous workshop held in Chennaiin September 2009. The second level of compliancewill create the foundation necessary for a company toadvance to full compliancewith international food safetyrequirements under any of the food safetymanagementschemes suchasBritishRetailConsortium, InternationalFood Standard, Safe Quality Food 2000, Dutch HACCPandFoodSafetySystemCertification22000,whichhavebeenbenchmarkedbyGFSI.

Theworkshophad11 technical sessionsaddressedbyeminentspeakerssuchasDrLeslieD.Bourquin,Professor

knowledge & innovation initiatives

Participants at the food safety workshop

of Food Science and Human Nutrition, and ExtensionFood Safety Specialist, MSU; and Mr Kevin Swoffer,Consultant,KPSResources,andChairoftheGlobalFoodSafety InitiativeTechnicalWorkingGroups.

Technology

Funding for Technology Commercialization Projects

Inrecentyears,technologyhasbecomenot only an important dimension ofnational development and growthbut also essential for survival in thiscompetitive world. Consequently, development andcommercializationofnewtechnologieshasbecomeafocusactivity.However,technologyduringitsupscaling,provingand commercialisation, has inherent risks and demandsconsiderable inputs in termsof timeandmoney.

The Technology Development Board (TDB) is the firstorganizationofitskindwithinthegovernmentframeworkwith the sole objective of commercializing the fruit ofindigenous research. Itencouragesenterprises to takeup technologyorientedproducts.

CII has been involved in the promotion of R&D andinnovation in not only industry but also in academia,working to bring technology centrestage, and maketheseaspects amovement in Indian Industry.

CII, incollaborationwiththeTDB,organizedinteractivesessionsandone-to-onemeetingsto facilitateFundingforTechnologyCommercializationProjectsforIndustry,in Pune on 4 February, and in Hyderabad on 15-16February.

InPune,Mr.AjayPatil,Convenor,CII-PuneFinancePanel,andCountryController,EatonTechnologies,highlightedtheimportanceofindustry-researchinstitutepartnershipsto transfer technology from laboratories to industry.

Addressing the Hyderabad workshop, Mr. H K Mittal,Secretary,TDB,saidthatcountrieswhicharedevelopedtoday have a history of good entrepreneurs andinnovations.Heurgedcompaniestocarefullyplantheirinvestmentandalsocarefullyselectinvestmentpartnersto achieve success.

Mr. Ramesh Datla, Chairman, CII MSME Council, andMD,ElicoLtd,calledforinnovationsandnewtechnologydevelopmentbyIndiancompaniesintoday’scompetitiveworld.

Industries, research institutes, and individual innovatorswithinnovativeprojectsreadyforcommercialisationhadonetoonemeetingswithTDBofficialsforfundingsupport.In Pune, there were around 27 one-to-one meetings,whereas inHyderabad,34suchmeetings tookplace.

H K Mittal, Secretary, TDB


Affirmative Action

Weaving Success Stories: Jaipur Rugs

CII adopted a Code of Conduct on Affirmative Actionfouryearsago,toencourageindustrytodrawmembersoftheScheduledCastesandScheduledTribesintothecountry’s economicgrowth story.

Many member companies have launched enablingand empowering programmes to act in consonancewith this voluntary codeof conduct. JaipurRugs,whomanufacture a wide range of high quality, handmadecarpets, is one suchcompany.

Jaipur Rugs has undertaken various employmentgenerating initiatives under the agenda of AffirmativeAction ever since its adoption of the CII Code ofConduct on Affirmative Action in 2007. In addition toproviding employment to those who belong to theScheduledCastesandScheduledTribes,thecompanyalsofocusesonthealleviationofpovertyandwomen’sempowerment.Tothisend,thecompanyhasidentifiedkey communities from the Below the Poverty Line(BPL)category,unskilled,unemployedanduneducatedpeople,ruralwomen,andSC/STs.Asmanyas40,000underprivilegedjoblesspeoplehaveevolvedintocarpetartisansby thismeasure.

JaipurRugsworksdirectlywith theartisans to removethe middlemen from the supply chain, as exploitationof artisans by middlemen is common in the carpetindustry.Thecompanybrands itsproductswithaRugMarkwhichmeans that thecompany isstrictlyagainstchildlabour.Over70percentoftheweaversassociatedwithJaipurRugsarewomen.Around95percentofthembelongtoSC/ST/OBCand80percentareilliterate.Themajority of the target beneficiaries were BPL categorybeforeassociatingwith thecompany.

Jaipur Rugs has a Social Entrepreneurship Modelthrough which it has institutionalized CSR throughoutits business strategies, operations, initiatives andproduction.

Thisrestructuringofproductionprocessesistakingplaceirrespective of the costs involved if they take forwardthe company’s commitment to provide sustainablelivelihoodtotheunderprivileged,byprovidingthemskilldevelopmentandenhancementtrainingwhileadheringtoglobalquality standards.

Howdoestheprogrammework?Thecompanyidentifiesthe underprivileged people interested in weavingwho are then given training for skill building and skillupgradation until they become expert weavers. Theseweaversarethenencouragedtoformself-helpgroups,anda collectiveenterprise.

Thecompanyalsoassiststheweaversthrough15add-on services, targeting the artisans and their families.Theseservicesincludehealthandsanitation,education,micro-finance, solar energy based solutions, rainwater

project AreaSC/ST Beneficiaries

CarpetWeavingUnit Jaluki,Nagaland 24

ShortTermSkill TrainingProgramme forCarpet-Finishers

4 villages inChuruDistrict,Rajasthan

112

ThanagaziCarpetClusterDevelopment

Thanagazi,Alwar,Rajasthan

997

RuralBusinessHubsonCarpets andRugs (9Villages)

24Parganas,WestBengal

44

CarpetWeavingClusterDevelopmentProgramme

WestKamengDistrict,ArunachalPradesh

31

ShorttermSkill TrainingProgramme forCarpet-Finishers

DadabariKacchiBasti,PratapVihar,RampuraDistrict,Jaipur

224

CarpetWeavingAssistancetoRuralWomen inNon-FarmDevelopment

AoyimkumVillage,Dimapur,Nagaland

24

ShortTermSkill TrainingProgramme forCarpet-Finishers

SaraiBavri,JaisinghPurakhod,Amer,Jaipur

13


Deoghar, Jharkhand 107


Sonabhadra,UttarPradesh

50

Computer-AidedCarpetDesignAwarenessProgramme

Jaluki,Nagaland 36

Skills Training at Jaipur Rugs


ART

Art Exhibition at IETF

harvesting systems, exposure visits, etc.

Jaipur Rugs has a presence in 10 states in India. Itis a very good example of how CII’s voluntary codeof conduct on Affirmative Action has empowered andenabled those sections of our societywhomost needsuch interventions. Several projects have recentlybeen launched so that SC/ST beneficiaries could getsustainable livelihood through employment or self-employment.

Carpet Weaving - Assistance to rural Women in non-Farm development, Aoyimkum, dimapur, nagaland

• This project provides livelihood to 24 rural womenby imparting skill development training, as well asproductionanddesign training

Skills development Training, Gujarat

• Covers30weavers inDabriamba

• Covers24weavers inKhatwani

TheExhibitiononContemporaryIndianArt,hostedbyCIIduringtheInternationalEngineeringandTechnologyFairinNewDelhifrom11to13FebruarywiththesupportoftheDIPP,drewasteadystreamofappreciativevisitors.TheseincludedMsKiranChoudhry,MinisterforExcise,Taxation and Public Health, Haryana,Ms Sudha Pillai,MemberSecretary,PlanningCommission,MrGKPillai,Union Home Secretary, and Mr MH Khan, DirectorGeneral,CAPART.Severalgroupsofschoolchildrenalsoviewed theexhibition.

FivemajorDelhi-basedartgalleriesdisplayedtheworksofaround40artists.TheexhibitsincludedamotorcyclefittedwithacannontitledHumanEnemyKiller-thevehicleemits smoke that kills mosquitoes! Funky art-relatedobjects such as mugs, kitschy cushions, and booklights, in addition to books on Indian art and culture,werealsoonoffer.

TheexhibitionofContemporaryIndianArtdemonstratedthat India’s new economic success has led to a newaspirationamongstIndianstoengagewithandacquireart.

Sudha Pillai, Member Secretary, Planning Commission with Chandrajit Banerjee, Director General, CII

development initiatives


CII’sthemefortheyearis‘BusinessforLivelihood’whichaimsat 10%growthby2014 -growth that is inclusiveand sustainable.

To further this,CII inpartnershipwith theWorldCraftsCouncil, organized an International Jewellery Summit‘Abhushan - Design Dialogue in Jewellery’ in closeassociationwithDevelopmentCommissioner-Handicrafts,UnionMinistryofTextiles.ThisaddedanewdimensiontoCII’swork in this area.

Abhushan brought craftspeople from all parts of Indiaand the world to a common platform to expand boththe domestic and internationalmarket for handcraftedjewelleryusingtraditionalskills,therebyhelpingtosustainandpreserve thecultural heritageof handicrafts.

TheInternationalJewellerySummitwasacollaborationofartists,artisans,designers,scholarsandstudents,toexchange ideason the traditionaland themodern, thefunctional and the aesthetic, in jewellery design. Theseminar explored how common materials like grass,wood, bone, metal and recycled materials can betransformed into exquisite jewellery through the skillsof thecraftsperson /designer.

DuringtheInauguralSession,MsSheilaDikshit, Chief Minister of Delhi, saidthe summit would enable artisans anddesigners from all over the world tosynergise to produce new attractivedesignandoutstandingbusiness,aswellas innovativemarketing strategies.

Thiru Dayanidhi Maran, Union MinisterforTextiles,saidtheIndiancraftindustryhas huge potential which needs to beharnessed in anorganisedmanner.

MrSubodhBhargava,PastPresident,CII,andChairman,TataCommunicationsLtd&WartsilaIndiaLtd,explainedhowCIIhas

Craft Development

Abhushan: Promoting Hand-crafted Jewellery

expandeditsagendabeyondPolicyandCompetitivenessto embrace inclusive growth and sustainability, CIIhas, in the past, taken small initiatives in informal andlocalised instances like supporting craftsmen in North-East India.Our experience has shown that threemajorchallengesneedtobeaddressedbytheinformalsectorfordevelopment:qualityassurance,scalingupofmicro-enterpriseand financial inclusion,hesaid.

The faculty for the seminar included experts from theMuseum of Art and Design, New York, the NationalInstituteofDesign,Ahmedabad,andtheWorldJewelleryMuseum,Seoul.

AbhushanCraft Bazaarwas also organised to facilitate adirectinterfacebetweencraftpersonsandpotentialbuyers.Jewellery in traditional, tribal and contemporary designsusing fibre, metal, thread, terracotta, wood and recycledmaterials was available for sale. National awardees andinternational jewellerydesignersparticipated inabigway.

The Craft Exchange Programme Workshop was aimedat creating a pool of artisans and designers trained tointernationalstandardstoaddvaluetothetraditionalgold,silverandpreciousstonejewelleryindustry.Non-traditional

materials like natural fibre, recycledmaterial,beads,thread,paper,horsehair,silverandcopperwireetc.wereused topromotedesignandfinishingtechniquesthrough truly multinational experiences.Theworkshopfocusedonartisticjewelleryin modern designs for contemporaryuse. Over 60 Indian craftspersons wereexposedtodifferenttechniquesindesign,innovationandcraftsmanship.

A special session was conducted forcraftspersons fromNorth East India. MsJayatiChandra,Secretary,UnionMinistryofDevelopmentofNorth-EasternRegionvisited theworkshop.

Subodh Bhargava, Past President, CII, and Chairman, Tata Communications Ltd & Wartsila India Ltd; Panabaaka Lakshmi, Union Minister of State for Textiles; Nina Kothari, Chairperson, Abhushan; Thiru Dayanidhi Maran, Union Minister for Textiles; Sheila Dikshit, Chief Minister,

Delhi; Usha Krishna, Chairperson, World Crafts Council; and S.S.Gupta, Development Commissioner, Handicrafts, Union Ministry of Textiles

Jayati Chandra, Secretary, Ministry of DONER (extreme right) at the Craft

Exchange Programme Workshop



CSR - CSO Bridge 2011

CII Pavilion at the Tripura Industries & Commerce Fair

The CSR - CSO Bridgeis a flagship initiative ofCII in partnership withCouncil for Advancementof People’s Action andR u r a l Te c h n o l o g i e s(CAPART), to channelisethe capacities of changemakers,bothindividualsandorganisations, to catalyzesocialdevelopment,therebygiving impetus to India’sgrowth. The programmeaimsatestablishingabridgeto strengthen the existinglinks between industry andvoluntaryorganizations for sustained inclusivegrowth.

TheCSR-CSOBridge,heldinChandigarhon1February,put particular emphasis on fostering new partnershipsbetween Medium & Small Enterprises and NGOs, tohelp these industries to fulfill their corporate socialresponsibilities.

MrMohammedHaleemKhan,DirectorGeneral,CAPART,pointed out that more than 75% of Indian industryis made up of MSMEs. He urged MSMEs to take

Corporate Responsibility

North-East – Tripura

up CSR as a mandate forsustainability in the longrun.HealsoreleasedaCSRdossier jointly prepared byCII andCAPART.

S e v e r a l w e l l - k n ow ncompan ies p resen tedindustry’s perspective onNGO-Industry partnership,wh i l e l ead ing NGOsshared their views too.The programme focusedon eme rg i ng i s sueso n C o r p o r a t e - N GOcollaborations, relating totransparentandsustainable

engagement,governance,accountabilityandreplicability.Thediscussionexploredwaysinwhichcorporatescouldextend support to NGOs, share expertise, knowledge,creativity andcapacitybuilding.

‘Pehal’ an exposition showcasing thework of variousCSOs, was held on the sidelines of the conference.This exposition enabled corporates to commit to theprojects which fit into their core business and CSRmodels.

D K Jain, Chairman, Regional Sub-Committee on CSR, CII (NR) and CMD Lumax Industries Ltd; Mohammed Haleem Khan, Director General, CAPART; R M Khanna, Chairman, CII (NR) and MD,

Stanley, Engineering Pvt Ltd

CII, with support from the Small IndustriesDevelopment Bank of India, participated in the21stTripuraIndustriesandCommerceFairforthe3rdconsecutiveyear,inAgartala,from28Januaryto 8February.

CII set up an Industry Pavilion at the Fair toprovide a platform for marketing the productsof entrepreneurs in the State. Initiatives likeencouraging women entrepreneurship, youngentrepreneurs and innovation were the mainhighlights of the Pavilion, whichwaswell alignedwithCII’s themeof ‘Business for Livelihood.’

The high profile visitors to the CII Industry Pavilionincluded Mr Jitendra Chaudhury, Industry Minister,Tripura,andMrPabitraKar,Chairman,TripuraIndustrialDevelopmentCorporation.Ahighleveldelegationfrom

Bangladeshalso visited thePavilion.

ThetechnologiesandproductsdisplayedatthePavilionincludedsurveillancesystems,ITsolutions,andspecializedClusterinitiativesinareaslikefoodprocessing,handloomsandfabrics.Otherdisplaysincludedpottery,glasspaintingand handicrafts. The expo registered a total footfall ofapproximately4500visitors.

CII Industry Pavilion at the 21st Tripura Industries and Commerce Fair in Agartala



Thefirst-everTripuraRubberConventionwasinauguratedby Mr Pabitra Kar, Chairman, Tripura IndustrialDevelopmentCorporation(TIDC)Limitedon24Februaryin Agartala. The two-day event was organised by CII,with support from the Department of Industrial Policy&Promotion,Governmentof India, theGovernmentofTripura,RubberBoardandtheAllIndiaRubberIndustriesAssociation (AIRIA).

Delegates from all over the country – Uttar Pradesh,Maharashtra,AndhraPradesh,TamilNadu,Kerala,WestBengalandtheNorthEastStatesaswellasBangladesh,activelyparticipated in theconvention.Over300 rubbergrowersparticipatedintheconferencetolearnaboutnewprocessandproductsrelevant forTripura. Anattractiveexhibitionbyselectcompaniesandgovernmentagenciesshowcasedopportunities in theRubberSector.

An Investors’ Delegation visitedthe Tripura Industrial Rubber Parkand rubber plantations along withlocal budding entrepreneurs fromwithin the state and the region.An Investors’ Meet chaired by Mr.Pabitra Kar was organized at theRubberPark.

AddressingtheSpecialPlenaryon25February,MrJitendraChaudhury,Industry Minister, Tripura, said theGovernment is committed to thegrowth of the Rubber Sector inTripura, and the establishment ofthe Tripura Rubber Park is an important step in thisdirection. About 1.5 lakh tonnes of rubber is the targetproduction output in the next 5 years. EmphasizingthatRubber isanaturalassetwithpotential forupliftingrural and tribal development, he urged the Tripura

CII Tripura Rubber Convention 2011

Rehabilitation Plantation Corporation and the TripuraForestsDevelopmentandPlantationCorporationLimitedtobeproactive in replicating the success storiesof theRubberBoard in forming rubberproducerssocieties.

MrKarsaidtheGovernmentismakingalleffortstoensureasteadysourceof rawmaterial for theproposed rubberindustriesintheState.Improvedinfrastructure,aswellasastablegovernment,singlewindowclearances,attractiveincentives,surpluspower,gasconnectivityandthepossibleland,railandseaaccessthroughBangladesh,makeTripuraanattractivedestination for investment,hesaid.

The sessions covered emerging trends in rubberprocessing,productmanufacturingandcommoditytrade,andsmallbusinessopportunitiesforlocalentrepreneursandplanters.

MrDipankarChatterji,Chairman,CIINorthEastCouncil,said greater connectivity wouldtriggerprogress in theNorthEast,especially inTripura.Settingupofmanufacturing units in Tripura willprovideopportunitiesforupcomingentrepreneurs and manufacturers,and Tripura’s close proximity withSouth Asian countries providesa huge opportunity for trade andcommerce, he said, noting thatthe Kaladan multimodal projectwillenableexportofrubbergoodsproduced inTripura.

MrAbdulMatlubAhmed,Chairman,India Bangladesh Chamber of Commerce & Industry,said that Bangladesh is looking for sourcing rubberproducts fromTripura.

A session on NEIIPP-2007 presented the incentivesavailable for investment in theNorthEast.

Sawar Dhanania, Chairman, (ER) AIRIA, Dr A.K. Krishna Kumar, COO - IL&FS Clusters; Jitendra Chaudhury, Industry Minister, Tripura; Dipankar Chatterji, Chairman, CII North East Council; and Matlub Ahmed, President, Indo-Bangla Chamber of Commerce & Industry

Sawar Dhanania and Pabitra Kar, Chairman, Tripura Industrial Development Corporation, at the Expo




CII and the Public Health Foundation of India (PHFI)signed aMoUon 21 February inNewDelhi on policyandadvocacy initiativesonkeypublichealth issuesofnational importance where industry can play a majorrole.Under the agreement,CII andPHFIwill organisetrainingworkshops for capacity building in industry toaddress challenges inhealthcare.

CII-PHFI MoU

Innovative Initiative against Domestic Violence

Public Health

Womens’ Empowerment

Dr K Srinath Reddy, President, PHFI, and S Sen, Principal Advisor, CII, exchanging the MoU on initiatives in public health

M s P r i y a P a u l ,C h a i r p e r s o n , C I INational Committeef o r W o m e n ’ sE m p o w e r m e n tpart icipated in thelaunchofaninnovativei n i t i a t i v e a g a i n s tdomest ic v io lence,‘Bell Bajao’,createdbyBreakthrough,aHumanRights organisationthat promotes valuesofequality,dignityandjustice. Her messageonWomen’s Empowerment has also been uploadedfor the video van campaign.

The Video Van was flagged off in New Delhi byMs. Sheila Dikshit, Chief Minister, on 19 February.Also present on the occasion were Ms Kiran Walia,MinisterforHealthandFamilyWelfare,Delhi;MsIndiraJaising,AdditionalSolicitorGeneralof India; Mr Rajiv Kale, Director,Department of Women and ChildDevelopment, Delhi; Ms Anne F.Stenhammer, Regional ProgrammeDirector, UN Women; Ms GauriChaudhury, Director, Action India,and Ms. Mallika Dutt, President &CEO,Breakthrough.

The discussion on the causes andsolutions to domestic violencefocused on the need for attitudinal

change which havet o b eg i n i n t h ehome,andwentontoinclude enabling legalprovisions, sensitivityof law enforcementagencies etc.

‘Be l l Ba jao! ’ i s asignature campaignto raise awarenessaga i n s t d omes t i cv i o l e n c e t h r o ughp u b l i c s e r v i c eannouncementsonTV,

radio,newspapers,videovans,websitesandoutdoorhoardings. This programme seeks to put an end todomesticviolencebyurgingbystanderswhowitnessdomestic violence to intervene by stepping forwardto ring the door bell.

Breakthrough has introduced a Video Van that willtour the streets of Delhi and interact with people. It

seeks to create awareness aboutdomestic violence through streetplays,puppetshows,opinionpolls,interactivegamesandflyers.Theaimis to help people identify differentkindsofverbalandphysicalviolenceas also appropriate measures todealwith it.

Already launched inUttarPradeshandKarnataka,Breakthroughsaystheinitiativewasverywellreceivedby the public in those states.

Video Van flagging off ceremony by Sheila Dikshit, Chief Minister of Delhi

Priya Paul, Chairperson, CII National Committee on Women Empowerment, and Chairperson, Apeejay Surrendra Park Hotels,

at the Video Van


Erode

A 10 member Global Excellence Mission visited SriLanka on 10-12 February to explore trade, investmentandbusinessopportunities.Interactionswereheldwiththe High Commissioner, the Ministry ofIndustry & Commerce, the Board ofInvestments, and the Sri Lanka PortsAuthority.

Goa

Mr Pankaj Gupta, Chief Commissioner,IncomeTax,Goa, madeapresentationonvariousaspectsofIncomeTaxandthescenario in the state to Yimembers on2February.Indianeedshugeinvestmentsineducation,healthcare and infrastructure, he said, requiring taxesto be collected at an accelerated annual growth ratetomobilizeresources.TheIncomeTaxDepartment,hesaid,hasbeenabletomultiply itscollectionsaround5times in amatterof only 7 years.

Guwahati

On 1 February, Yi GuwahatiorganisedafieldvisittothekitchenofAkshayaPatraFoundation, thelargest feeding programme inthe world, which provides mid-day meals to underprivilegedchildren in Government schools,in partnership with the state aswell as the central government.The initiative, which started in2000inBangalorewithjust1,500childrennow feedsover1million

in 8 statesand18 locationseveryday.

The Guwahati Chapter, which was started in 2010, atpresent feeds 40,000 children in 385 schools. With avision to ensure that “no child in India is deprived ofeducationbecauseofhunger"theFoundationisstrivingtocreateahumanresourcespoolthatwillpropelIndiaintotheleagueofdevelopednations.ThevisittoAkshayaPatraFoundationprovidedafirsthandexperienceofhowtheyprepare,packanddispatchfoodforthousandsof children.

hyderabad

YiHyderabad,alongwithCII,organisedasessionon‘CustomerManagement’withMr. Jyotin Sachdev, President, SharedExpectationson23February.Mr.Sachdev,who has received the Bell LaboratoriesPresident Award for Innovation andTechnical Excellence, provided practical, affordableguidanceonhowtogrowabusiness,retaincustomers,gain new markets, manage critical resources, explorenewopportunitiesandmanagethebottomline.HisVoiceof theCustomerbusinessmodelhasbeensuccessfullydeployed in linking customer expectations to businessprocesses.

raipur

Yi Raipur, in association withAmbedkar Hospital Model BloodBank, organised the 11thBloodDonation Camp at the premisesof RR Ispat Ltd on 11 February.YiRaipurhascollectedmorethan900 units of blood in ten blooddonation camps organised sofar.

Yi Erode members at Maliban Biscuits Manufacturing Industry in Sri Lanka

Pankaj Gupta, Chief

Commissioner, Income Tax

Department, Goa

Yi members at the Aakshya Patra Foundation, Guwahati

Jyotin Sachdev, President,

Shared Expectations

Blood donation camp in Raipur


AsiaChinaIndia-China Trade (January 2011)

Trade value Change

China’s exports to India $3.920billion 39.8%

China’s imports from India $2.739billion 51.1%

Total trade $6.660billion 44.2%

China’s surplus $1.181billionSource: http://www.customs.gov.cn/publish/portal0/tab400/module15677/info289390.htm

Economic Indicators

Current account surplus (2010)

$306.2 billion, up 25%

FdI $10.03 billion, up 23.4%

PMI (Jan) Down to52.9%

Exports(Jan)

$150.73billion,37.7%

CPI (Jan) 4.9% Imports(Jan)

$144.28billion,51%

PPI (Jan) Up6.6% Total trade(jan)

$295.01billion,up44%

2nd South Asia-Sichuan Seminar

CIIparticipatedinthe‘2ndSouthAsia-SichuanBusinessPromotion Seminar’ held on 25 February inChengdu,the capital of Sichuan Province, China. The seminarwasattendedbymorethan100delegates,representingvarious trade promotion organizations and industryassociations from the SAARC countries along withChina,thehostcountry.Thebusinessforumdiscussedthescopeforboostingbusinessopportunitiesamongstthe SAARC countries to further enhance economiccooperationbetweentheregionandChina,withspecialfocuson theSichuanProvince.

Mr Zhang Zenhua, Vice Governor, Sichuan Province,delivered the keynote address. Mr Yu Ping, ViceChairman, CCPIT, also spoke. Ambassadors, consulgeneralsandrepresentativesofSAARCcountriesspokeaboutthepotentialareasofcooperationbetweenChinaand their respective countries.

Mr Inder Mani Pandey, Consul General of India inGuangzhouProvince,stressedontheneedforsustainablegrowth of bilateral trade between India and China, andinvitedChinesecompaniestoinvestinIndiainsectorslike

Infrastructure, Automotive and Construction. CII made apresentationontheIndianeconomyandtheIndia–Chinabilateraltradeandeconomicpartnership.CIIShanghaiandCCPITSichuanalsosignedaMoUon thisoccasion.

Industry Contribution to Economic Growth

Industrycontributed49.3%totheeconomicgrowthratein2010,an increaseof9.3percentagepoints fromtheprevious year.

Huawei Sales Up

Huawei Technologies’ sales revenue for 2010 reached$28 billion with an increase of 24%. Huawei hasnow become the world's second-largest provider oftelecommunication equipment and related services.Huawei's domestic revenue was about $10 billion in2010.

FDI in Jiangsu

China’s JiangsuProvinceutilized$28.5billionof FDI in2010,up12.54%,thehighestinChinafortheeighthyearincontinuation.About70%of theFDIcame fromAsiancountriesandareas,up21%.Inthe2006-2010fiveyearperiod,utilizationofFDIinJiangsutotaled$118.2billion,double theamountduring theprevious fiveyears.

Gold Output

China,whichhasbeentheworld'slargestgoldproducersince 2007, retained its position in 2010 by mining340.88 tons, up8.57%.

Chinese Economy Overtakes Japan

China has formally overtaken Japan as the world'ssecond largest economy, as its GDP reached $5.88trillioncomparedtoJapan’s$5.47trillionin2010.Japanbecame theworld's second largesteconomy,after theUnitedStates, in 1968.ChinahadovertakenGermanyin 2007 tobecome theworld's thirdbiggest economy.

US Agricultural Products

For the first time, China emerged as the top marketfor US agricultural exports as it imported agriculturalproductsworth$17.5billionfromtheUSin2010,which


accounted for15.1%of the totalexportsofagriculturalproductsof theUS.

Iron Ore Imports Skyrocket

Chinese iron ore imports surged 48% to a recordin January, compared with a year ago, as tradersreplenishedstocksinexpectationofrisingprices.Importsclimbedto68.97milliontonsinJanuary,up18.8%from58.08million tons inDecember.

Ocean Economic Zone

China'sfirstoceaneconomiczoneinthecoastalprovinceofShandongwas inauguratedon18February,when itsignedcontractsworth$38.6billion,signalingthatChinaisenlarging itseconomic focus from the land tocoverthe ocean, as well. The zone covers all the offshorewatersofShandongProvince,includingcities-Qingdao,Dongying,Yantai,Weifang,WeihaiandRizhao-andtwocoastal countiesadministeredbyBinzhou.

Rail and Road Infrastructure

ChinaplanstospendatleastUS$1.3trillionoverthenextfive years to ease transport and freightbottlenecks.

Aviation Sector

Chinaplanstoinvest1.5trillionyuanduringthe12thFive-YearPlan(2011-2015)toupliftitsaviationsector,includingpurchaseof700newplanesandbuilding45airports.

Import Taxes

China plans to cut import taxes on some products,includingformulamilkandcosmetics,aspartofaseriesof reductions aimed at balancing international trade.China’staxrevenuejumped23%to7.32trillionyuanin2010, partly boosted by import taxes. China collected1.05trillionyuaninvalue-addedandconsumptiontaxesfor importedgoodswith a riseof 31.1%.

JapanOsaka Business Seminar

CII organized a business seminar on ‘India-Japan:Expanding Bilateral Cooperation – Focus on Osaka’on 10 February in New Delhi, during the InternationalEngineeringandTechnologyFair (IETF) 2011.

Mr Toru Hashimoto, Governor of Osaka Prefecture,Japan,inhiskeynoteaddress,calledforstrengtheningbusinessandeconomiccooperationbetweenIndiaandOsaka, which is one of themost advanced industrialhubsof Japan.

Mr Vikram Kirloskar, Chairman IETF 2011 Global, andViceChairmanToyotaKirloskarMotorPvtLtd,saidthatJapaneseparticipationinIndia’sgrowthanddevelopment

hasbecomestrongerinalldimensions,includingtradeand investment, technology, R&D, infrastructure andpeople-to-peopleexchanges.Welcomingthesigningofthe Comprehensive Economic Partnership AgreementbetweenIndiaandJapan,heexpressedconfidencethatitwould facilitatenewbusinessopportunities,enhancecompetitivenessandleadtodeeperinvolvementofPPPsandSMEs in infrastructuredevelopmentprojects.

Mr Yutaka Ienaga, Chairman, International BusinessCommittee, Osaka Chamber of Commerce and Industry,saidthatmanybigcompaniesfromOsakalikePanasonic,Sharp,etcarealreadydoinggoodbusinessinIndia,andmanymoreareinterestedininvestinginIndia.HesaidthatJapanesecompanieswouldliketostrengthentheirbusinessrelationship,especiallywithIndianSMEs,andareverykeentoenter the Indianmarket throughJointVentures.

India-Japan Trade – 2010

Trade valueTotal trade $14.654billionExports to India $9.019billion, up42.4%Imports from India $5.635billion, up51%

Source:jetro.go.jp

Sony’s Plans

Sony isdoingboomingbusiness in India,with theNo.1marketshareinflat-panelTVs,at34%,anda40%shareofthedigitalcameramarket.ItisalsoNo.1inIndiainhometheatersandcamcorders.India'sTVmarketisexpectedtogrowto4.5-5millionunitsduringthefiscal2012,upfromnearly3millionnow.Sonyishopingtogetabout35%ofthosesales,whichwould total1.7millionTVs.

Consumer Prices Fall

Japan'skeyconsumerpriceindexfell0.2%inJanuaryfromayearearlier for the23rdstraightmonthofdecline.

Infrastructure Exports

The JapaneseCabinet has approved a bill to help boostJapanese firms' exports of infrastructure technologies todeveloping countries by strengthening the functions of astate-backed lender.The legislation, ifpassedby theDiet,wouldallow theJapanBank for InternationalCooperationtospinofffromJapanFinanceCorp,upgradingitsabilityto

Yutaka Ienaga Chairman, International Business Committee, Osaka Chamber of Commerce & Industry, Toru Hashimoto, Governor,

Osaka Prefecture, Japan, and Vikram Kirloskar, Chairman, IETF 2011 Global and Vice Chairman, Toyota Kirloskar Motor Ltd

report


report

provide funds forJapanesecompaniesoperatingabroad.

Trade Deficit

Japan posted its first trade deficit in almost twoyears in January, amidst rising commodity prices andweak demand for its exports. Exports, a key driver ofJapan'seconomy, rose just1.4% inJanuary - the14thconsecutivemonthofgrowth,butwelloff the13%on-year surge inDecember.

Debt Rises

Japan'sdebtinthegovernmentsector-bothcentralandlocallevels-roseto217%ofnominalGDPin2009,thelargest figuresincecomparabledatabecameavailablein1875,accordingtotheIMF.TheIMF'slatestforecastssuggest thebalancewill reach232%ofGDP in 2012.

Fastest Train

CentralJapanRailwayisstaking¥5.1trillion(US$61billion)onbuildingwhatithopeswillbetheworld'sfastesttrain.Themagneticlevitationtrainwithaspeedof500km/hwouldrunbetween Tokyo andNagoya and be completed by 2027.The290km linkwill laterbeextended toOsaka.

Huge Steel Merger Planned

NipponSteelCorp.andSumitomoMetalIndustriesLtd.plan to merge by October 2012, creating the world'ssecond-largest steel-maker in terms of crude steelproductioncapacity.ThebiggestandNo.3steel-makersinJapanareexpectedtotakeadvantageofthemergerto enhance their domestic bases and competitivenessand jointly explore overseas markets to counter fast-growing Chinese steel-makers and catch up with theworld's leader,ArcelorMittal.

South KoreaIndia-Korea trade – 2010

Trade Value

Total trade $17,109 million, up 40.75%

Exports to India $11,435 million

Imports from India $5,674 million

Source: Korea International Trade Association (KITA)

Indiawas the 13th largest tradingpartner, 12th importsourceand8thexport destinationofKorea in 2010.

Foreign Trade - 2010

Trade value

Exports $466.384billion, up28.3%

Imports $425.212billion, up31.6%

Total trade $891.596billion

Surplus $41.18billion

Source: Korea International Trade Association (KITA)

Foreign Investors in Pyeongchang

The Korean government has enacted a newpermanent residency policy for foreign residentsinvesting in Pyeongchang in Gangwon Province.This policy, previously exclusively available toinvestors on Jeju Island, aims to help supportt he c i t y ’ s th i rd b id to hos t the W in te rOlympics.

Overseas Remittances

Foreignworkers residing inKorea sentmore than$10billion to their homecountry in 2010.

Economy Grows by 6.1%

The Korean economy grew by 6.1% in 2010 onthe strength of strong public stimulus and resilientexports. The Bank of Korea has predicted a growthof 4.5% in 2011while thegovernment estimatesa 5%expansion.

Current Account Surplus

Koreaposted its fourth-largestcurrentaccountsurplusofUS$28.21billion in2010basedonrobustexports incars andelectronicsproducts, as against $32.7billionrecorded in 2009.

POSCO JV

POSCO has signed a contract with IndianMetal andFerroAlloys (IMFA) to build a ferrochromeproducingjoint venture, with POSCO holding 24% and IMFA76%.The joint venture is expected toproduce35000tons of ferrochrome each year. POSCO will have anexclusive agreement to buy the production for next25 years.

Doosan buys Indian Boiler-maker

Doosan Heavy Industr ies and Construct ionCompany has announced an agreement topurchase AE&E, a subsidiary of the Austrian boilermaker for US$ 28.5 million. AE&E, located inChennai , is engaged in the product ion ofpressure points used in boilers, and would beDoosan’s first manufacturing facility for boilers inIndia.

Business Opportunities in France

AFrenchcompanyandanindustrialsiteareavailablefor sale, awaitingan Indianpotential buyer.

For more details visit the CII International webpage: URL http://www.cii.in/boinfrance


Members of the Textile Delegation from Pakistan

Pakistan AsafollowuptotheIndo-PakBusinessMeetorganisedbyCII lastyear inNewDelhi,ameetingof Indo–Pak

South AsiaTextile CEOs was held in New Delhi on 17 February.The two sides discussed the potential for economiccooperationandissueshamperingbilateraltradeinthe

textile sector.

Mr Sushil Kapoor, President& CEO, Technical TextilesBusiness, SRF Ltd, whochaired themeeting from theIndianside,outlinedsolutionsfor expanding bilateral tradebetween India and Pakistan,such as increase in directtrade rather than routinggoodsthroughthirdcountries,allowing of free trade byPakistan,moresteps tobuild

Uruguay

Mr.DaniloAstori,MinisterofState forCommerceandIndustry, led a large Uruguayan business delegationto India. Addressing the India-Uruguay businessconference,organisedbyCIIonthisoccasion inNewDelhion25February,Mr.JyotiradityaScindia,Ministerof State for Commerce and Industry, India, said thatIndia is reaching out to emerging markets like LatinAmerica as a strategic priority. The Minister pointedout thatUruguaytoo is followingasimilarstrategyby

Latin America & Caribbeanengaging large emergingmarkets like India.

Mr. Scindia said that India hasmade slow but steadyprogressinitsliberalizationprocessthatbalancesgrowthwith sustainability and inclusiveness, and the countrynowoffers one of themost open FDI environments intheworld.HealsohighlightedthegrowingoutwardFDIbyIndianfirms,andreferredtosucheconomiclinkagesas commercial and human bridges that connect Indiato theworld.

Mr.Astoridescribedhiscountryas thegateway to theover200millionconsumerstrongMERCOSURregion.HepointedoutthatUruguayhasanadvantageouspositionin terms of logistics and connectivity with the rest ofLatinAmerica.TheVice-Presidentalsoemphasizedthedemocratictraditionsandstronggovernanceindicatorsthat make Uruguay an attractive location for investorsin LatinAmerica.

Earlier, in his welcome remarks,Mr. Salil Singhal, Co-Chairman,CIIAgricultureCouncil,andCMD,PIIndustries,welcomed the largest ever business delegation fromUruguay to India as a sign of the potential growth ofbilateraleconomicrelationsbetweenthetwocountries.

CII signed MoUs with the Uruguay National Chamberof Commerce & Services; the Uruguay Chamber ofIndustries and the UruguayChamber of Commerce &Export ofAgriProducts.

Jyotiraditya Scindia, Minister of State for Commerce & Industry, India; Salil Singhal, Co Chairman CII Agri Council and CMD,

PI Industries Ltd; and Danilo Astori, Vice-President, Republic of Uruguay

report


confidence and business-to-business links, etc.

Mr Iqbal Ebrahim, leader of the Pakistani delegation,andDirector,AlKaram,urgedIndiatoencourageimportof textiles from Pakistan. There are many non - tariffbarriers imposedby India, he felt.

Mr Amin Hashwani, President, Pakistan-India CEOsBusiness Forum, wanted the two sides to understandeachother’sviews,examinepotentialsandimpedimentsto trade, and agree on specific initiatives to overcomethem.

Both sides made brief presentations on the textile

industry, production, export, potential areas forcollaboration, etc.

A six member Committee comprising of threemembers from each side is being set up to preparenotes on possible areas of cooperation and policyrecommendationsforthetwoGovernmentstoimplementfor mutual benefit. They would take into account thecurrent situation and the given parameters and comeupwith a set of recommendations.

ThenextmeetingoftheIndo–PakCommitteeonTextileswill takeplaceon19May inKarachi,Pakistan.

United KingdomUK-India: The Advanced Technology, Innovation and Manufacturing Agenda

CIIandtheConfederationofBritishIndustry(CBI)jointlyorganisedaCEOsbusiness interactionwithMrAnandSharma,MinisterforCommerceandIndustry,India,onthe‘UK-India:TheAdvancedTechnology,InnovationandManufacturingAgenda’on4February inLondon.

The interaction was organised followingthe first meeting of the UK-India CEOsForum in London on 3 February, settingtheagendaforbusinessandgovernmentin the twocountries.

Mr Sharma discussed the agenda witha select group of British and UK CEOs,covering diverse areas ofmanufacturingfrom the automotive sector to designand research,green technologies, infrastructure, IT formanufacturing, skills in manufacturing and Formula1, among others. Cooperation in Manufacturing andAdvancedTechnologyemergedasoneofthekeyareastobe steppedupbetween theUKand India.

The session was chaired by Ms Helen Alexander,President, CBI. Mr Nalin Surie, High Commissioner ofIndia to the UK, and Mr Chandrajit Banerjee, DirectorGeneral,CII, also spoke.

CII IBF UK Interaction

CIIIBFUKmembersmetwithMrNavdeepSuri, Joint Secretary, and Head, PublicDiplomacy Division, Ministry of ExternalAffairs,India,on17FebruaryinLondon,foraninteractivesessionon‘PublicDiplomacyand India’s Foreign Policy- InfluencingGlobal Thinking.’ The members were interested toknowhowtheMinistryhasbeenreachingoutglobally,especially on twitter and facebook, going global in itsapproach to reaching out to audiences all over theworld.Theydiscussedtheirbusinessexpectationsandsharedtheirownexperiencesofbusinessesinfluencingglobal thinking,withMrSuri. ThesessionwaschairedbyMrAnwarHasan,Co-Chair, IBF-UK.

India as the Soft Power

“Thewinningside isnot thesidewith thebiggerarmybutthesidewiththebetterstory”,observedMrShashiTharoor,MP, India, speakingas theChiefGuestat thesymposiumon‘IndiaastheSoftPower’on18February

Helen Alexander, President, CBI, with Anand Sharma, Minister for Commerce and Industry, India, in London

Navdeep Suri, Joint Secretary, MEA. with Anwar Hasan, Co-Chair, CII IBF-UK, and other IBF members

report


in London. The University of Westminster, London,partnered with CII to organize this symposium, whichwassupportedbythePublicDiplomacyDivision,Ministryof External Affairs, India, and theHighCommission ofIndia in theUK.

ThesymposiumsharedwithUKbusinesses,academia,policymakers andmedia, the ‘soft power’ of this fast-growing economy with a vibrant, pluralist and secularpolity.

Mr Tharoor emphasized the importance of “soft powerasatooltoalterthebehaviorofothers.”Hepointedoutthat as the global powers discovered the limitations ofhardpowerofmilitaryaction,softpowercameintobeingas a tool of foreign policy. India is making use of softpower to influenceglobal thoughts,hesaid,noting thatIndiahassurvivedbecause“ithasmanagedtocreateaconsensusonhow tomanagewithoutaconsensus.”

Mr Kiram Karnik, former President, NASSCOM; MrShekharKapur,notedfilmmakeranddirector;MrRajeshPrasad,DeputyHighCommissionerof India to theUKandMrNavdeepSuri,JointSecretaryandHead,PublicDiplomacy Division, Ministry of External Affairs, alsospokeat the symposium.

India’s Foreign Policy

CII has been working with the University of Oxfordto bring to senior members of Indian industry and

governmenttotalktothestudentsondifferentareasof India’s growth and development.

On 19 February, CII organized a guest lecture with MrNavdeepSuri,JointSecretaryandHead,PublicDiplomacyDivision, MEA, on ‘India’s Foreign Policy.’ The lecture,hostedby theOxford IndianSociety,wasmoderatedbyProf Subir Sarkar, Rudolf Peierls Centre for TheoreticalPhysics, University of Oxford. The participants includedstudentsfromIndia,theUK,USA,Russia,Chinaandothercountries, and the discussions covered awide range offoreignpolicyanddiplomatic relations.

CII IBF Delegation to Ireland

A CII IBF delegation visited Ireland onthe invitationof the IndianAmbassador toIreland. The Embassy organized businessevents in Dublin and Cork on 23 and 24February respectively.

Ambassador P S Raghavan, Indian Ambassador toIreland,spokeabout theopportunitiespresent in IndiaforIrishindustryespeciallyinsectorslikeIT,lifesciences,advancedtechnology,educationandskills,and invitedIrishbusinessestodobusinesswithIndia.ThedelegatesincludedMrRajnishKumar,RegionalHeadandCEO-UK,State Bank of India; Mr Udayan Guha, Vice PresidentHCL Technologies; and VMS Kumaraguru, Director,Butterfly India Ltd.

Shashi Tharoor, MP, India; with Jo Johnson, MP, UK At the Lecture on India’s Foreign Policy

United States of AmericaUnlocking the Potential of US-India Trade

CIIorganisedasessionwithMrGaryLocke,Secretary,USDepartmentofCommerce,andMrAnandSharma,UnionMinisterofCommerceandIndustry,on7FebruaryinNewDelhi, todiscuss thepotentialofbilateral tradebetween India andUSA.

RecognizingIndia'sgrowingeconomicandstrategicroleintheworld,SecretaryLockesaidthatIndiahasbecomeacrucialsecuritypartnerandaforceforglobalstability,

partnering with the US in fighting terrorism, assistingwiththereconstructionofAfghanistan,supportingglobalnon-proliferation efforts in Iran, and conducting morejointmilitary exercises.

MrAnandSharma,Mr.HariSBhartia,President,CII,andMrChandrajitBanerjee,Director-General,CII,addressedthe session.

Mr. Locke ledadelegationof24Americancompanies(of which 14were SMEs) in the areas of civil nuclear,

report


defenceandsecurity,civilaviation,andinformationandcommunicationstoencouragepartnershipsbetweenUSand Indian businesses, specifically in areas such asinfrastructureandtechnology.Tomaximizethepotentialof the US-India relationship, he called for addressingmarket access hurdles, including tariff rates and non-tariff barriers, FDI caps, andprotectionof IPR.

Mr. Sharma supported partnership with the US torealizeandsustainIndia'sgrowthtargetsinagriculture,infrastructureandmanufacturing.

Mr. Bhartia appreciated the removal of nine Indianorganisations, including ISRO and DRDO, from theUS Entities list, saying this would go a long way instrengthening the strategic partnership. As the USproceedstowardsitstargetofdoublingexports innextfiveyears,Indiawillprovetobeavaluableandexcitingmarket,supportedbyrisingincomes,youthfulpopulationand vibrant enterprises, he said.

Business Opportunities in Indiana

Ahighlevelbusinessdelegation of theIndiana EconomicD e v e l o p m e n tCorporation (IEDC)visitedMumbaiandHyderabad.

CII, in associationwith IEDC, held an interactivesessionforthedelegatesinMumbaion 22 February to explore bilateraltrade and investment opportunities between India andIndiana.Mr.E.MitchellRoob,Jr.,SecretaryofCommerce,Indiana,andCEO, IEDC,highlighted the four strategicclusters that Indiana is really good at: Life Sciences,Energy, Vehicles and Agriculture. “These are also

someof thecoresectors for Indiaandthere isagreatopportunityforbusinessesinthetwocountriestolearnfromand invest in eachother,” he said.

Indiana, one of America’s topmanufacturing states, isa leading producer of pharmaceuticals and medicaldevices, automobiles, electrical equipment, machineryand chemical products. In September 2010, CII hadorganizedadelegationof Indianmid-sizedcompaniestoIndianapolis,whichresultedinvaluablenetworksandbusinessgenerationbetween India and Indiana.

US Deputy Asst Secretary of State

CII hosted a dinnerwithDr.AlyssaAyres,Deputy Ass is tantSecretary at the USDepartment of State,on 22 Februa ryin New Delhi. Att h e r o u n d t a b l ediscussion, severaly o u n g I n d i a ne n t r e p r e n e u r s ,including Mr. Ankur Bhatia, Executive Director, BirdGroup;Ms.AnupamaArya,Director,MoberaSystems;andMs.BhairaviJani,Director,SCAGroupofCompanies;sharedtheirbusinessstories.Thediscussions focusedon entrepreneurship and innovation, healthcareopportunities,andpossibilitiesofcollaborationbetweenIndia and theUS in the fieldof education.

US Congressional Staffers Delegation

CII hosted a briefing meeting for members of the USCongressional Staffers Delegation on 21 February inNew Delhi. Mr. Tarun Das, former Chief Mentor, CII,briefedthedelegatesaboutthedynamicsoftheIndianmarket and economy, emerging areas of reform and

Mitch Roob, Secretary of Commerce,

Indiana

Dr. Alyssa Ayres, Deputy Asst Secretary at the US Department of

State and Chandrajit Banerjee, Director General, CII

Members of the US Congressional Staffers Delegation

Hari S Bhartia, President, CII; Gary Locke, Secretary, US Dept of Commerce; Anand Sharma, Minister of Commerce and Industry,

India; and Chandrajit Banerjee, Director General, CII

report


Standards and Conformance Cooperation Program(SCCP), an initiative launched in 2009 jointlybyANSI,CII,andBIS.TheSCCPconsistsoftwocomplementaryprojects:

1.SupportedwithfundingfromUSTradeandDevelopmentAgency and focusing on sectors of interest to USindustry;

2.Supportedby theGovernmentof Indiaand focusingon sectorsof interest to Indian industry.

Together,theseprojectsaimtoimprovemarketaccessforAmericanandIndianindustrybyincreasingtransparencyand sharing information on the standards regulatoryrequirementsineachmarket.ByfacilitatingcooperationandcollaborationbetweenindustryintheUSandIndia,the SCCP provides amechanism to address potentialtradebarriersbefore theyarise.

One of the key SCCP tools now available on theStandardsPortalarethe‘StandardsDirectories.’Thefive‘Directories’listthetechnicalrequirementsapplicableintheUSmarket for five industry sectors: IT Equipment,Telecom Equipment, Petroleum Equipment, WaterPurification Equipment and Construction Equipment,and they could be expanded to include other sectorsin the future.Thedirectorywillserveacrucialneedbyprovidingacentrallocationforinformationonstandards,regulations,andconformityassessmentthatisusedbyUS industry in theUSmarket.

The data compiled by ANSI has all three types ofrequirements:market access,market acceptance, andmarketdifferentiation.Thiswill facilitatetheadoptionofthese approaches in international markets, leading toreducedbarriers to trade.

Mr Sharad Gupta, Director General, Bureau of IndianStandards, wished success to the SCCP initiative. MsLeocadiaIZak,Director,USTDA,stressedtheimportance

possibilities of cooperation between India and theUS. The discussion focused on working together inenergy efficiency, education and means of enhancingeconomicrelations,suchasthepossibilityofaBilateralInvestmentTreaty.

The delegation includedMr. JeddMoskowitz, Chief ofStaff to Rep. Gary Ackerman, House Foreign AffairsSub-committee on Middle East and South Asia; Mr.Mark Brunner, National Security Adviser to Sen. MarkWarner, Co-Chair, Senate India Caucus; Ms. LauraBerntsen,LegislativeAssistant toRep.JimMcDermott,Former Co-Chair of the House India Caucus; Mr.William Gardner Todd, Legislative Assistant to Sen.ThadCochran,RankingMember,SenateAppropriationsCommittee; Mr. JeremyWoodrum, Legislative Directorto Rep. Joseph Crowley, Co-Chair of the House IndiaCaucus;Mr. Ed Parkinson, Professional StaffMember,HouseCommitteeonHomelandSecurity;Mr.JedBhuta,Legislative Director to Rep. Heath Shuler; Mr. JasonHarris, Legislative Director to Congressman Alcee L.Hastings;Mr. Sajit Gandhi, Professional StaffMember,House Foreign Affairs Committee; Mr.Worku Gachou,Legislative Assistant on Foreign Policy to Rep. EdRoyce,Co-ChairofHouseIndiaCaucus;andMr.HunterStrupp,ProfessionalStaffMember,HouseForeignAffairsSubcommitteeonTerrorism,Non-ProliferationandTrade.CIIalso facilitatedmeetings for thedelegationwith theReserve Bank of India, State Bank of India and theMumbaiStockExchange.

Directory of US Standards

CIIannouncedthelaunchofthemuchawaitedstandardsdirectories on Sarthi, the CII Standards Portal thatfacilitatesinternationaltrade,atthe2ndIndo-USSummiton Standards in Trade on 8 February in New Delhi.The Standards Portal is a deliverable of the US–India

S Joe Bhatia, President & CEO, ANSI; Uday Abhyankar, Co-Chairman, CII Standards & Conformity Assessment Task Force, Sharad Gupta, Director General, BIS; K T Chacko, Director, Indian Institute of Foreign Trade; Leocadia I Zak, Director, USTDA; and Dr S K Saxena, Director,

Export Inspection Council, releasing the SCCP Progress Report at the 2nd Indo-US Summit on Standards in Trade

report


ofStandardsandConformity.MrSJoeBhatia,President& CEO, American National Standards Institute (ANSI)noting that over US$ 14 trillion in global businessis affected by Standards, detailed the developmentworkdoneunder theSCCPprogramme, including fiveworkshopstoraiseawarenesslevels.WithIndo-UStradeexpectedtotouchUS$70billionby2015,heexpressedconfidenceinthegrowing‘definingpartnership’betweenIndia and theUS.

Mr K T Chacko, Director, Indian Institute of ForeignTrade, said that it was critical to arrive at mutualagreementsofstandardsbetweencountriestopromoteinternational trade, and underlined the importance ofharmonising domestic and international standards.However,heexpressedconcernover the falling Indianexports to theUS.While Indianexportsworldwidehadgrown five times, theyhadmerelydoubledwithUS inthe last ten years. He also said that the trade-relatedbarriers for Indian exports to the US far outnumberedthose raised by India: in 1995-2010 it was 3740 UStrade barriers versus 178 raised by India. Calling forgreater technical cooperation, and a positive link ontransfer of technology at affordable cost between thedevelopedanddevelopingworld,helamentedthelackofproperrepresentationbythirdworldcountriesintheISOstandards formulationbodies.

Dr S K Saxena, Director, Export Inspection Council,shared the Council’s role in fostering standards andconformance equivalence arrangements with tradepartners,particularly in theareaof foodexports.

India-US Trade and Commerce

Bigger Opportunities in Smaller Cities

Smaller cities are scoring over metros in terms ofgrowing urbanisation, and cities such as Jalandhar,Aurangabad, Bhubhaneshwar, Agra and Raipur arebelievedtobethenext‘citiesofopportunities’.AccordingtothelatestMorganStanleyresearchreport,‘AlphaWiseCity Vibrancy Index: A Guide to India’s Urbanization’,householdsinthesecitiesearnmorethanIndia’saverageurban household. The Centre for Monitoring IndianEconomy(CMIE)pegsthequarterlyaveragehouseholdincomeataboutRs45,000perurbanhousehold,versusRs 65,000 in cities such as Jalandhar, Bhubaneswar,Guwahati andAurangabad.

US India Bilateral Trade

Indo-US bilateral trade is expected to have increasedbymorethan30percentinthefirst11monthsof2010.AccordingtothelatestfiguresfromtheUSDepartmentofCommerce,betweenJanuarytoNovember2010,the

totalbilateraltradebetweenIndiaandtheUnitedStateswasUS$45,011million.

India, US to Discuss Trade Irritants

India and the US are set to address some of theprickly issues that have acted asmajor irritants in thecommercialrelationsbetweenbothcountries,toensuregreaterflowoftradeandinvestment.TheissueswouldberaisedduringthenextIndia-UScommercialdialogue.The concerns relate to the recent raise in fees forprofessional visas by the US, imposition of a specialtaxonforeigncompaniesandthe introductionof tariffandnon-tariff barriers.

India-US Policy News

Indian Model of Development

TheIndianmodelofgrowthisworthemulatingglobally,atopObamaAdministrationofficialhassaid."TheIndiamodelisreallyonebasedlargelyonlocalconsumptionand innovationandenterprisebecauseof thechangesand the reforms that have taken place in the Indianeconomy over the last ten years and twenty years,"saidMr Robert Blake, Assistant Secretary of State forSouthandCentralAsia.

Support for India-US Relationship

Given that India-US relationship has broad bipartisansupport, Indians can be confident of continued closecooperationbetweenthetwonations,twotopAmericansenatorshavesaid."ThepeopleofIndiacanbeconfidentthattheclosecooperationbetweenourtwonationswillcontinue, because it has broad bipartisan support inAmerica,"SenatorsJohnCornynandMarkWarnerwroteinajointop-edinthelatestissueofthepopularethnicIndiaAbroadnewspaper.TheSenators areCo-Chairsof thepowerfulSenate IndiaCaucus.

US Backs India’s UNSC Bid

Describing Indiaasarisingglobalpower,abi-partisanresolutionintroducedintheUSHouseofRepresentativeshas expressed support for the country’s bid for apermanent seat in the UN Security Council. Theresolution, introduced by Democratic CongressmanAlcee Hastings, and supported by half-a-dozen otherlawmakers,hasbeenreferredtotheHouseCommitteeonForeignAffairs.

Momentum for UN Reform

WithUSPresidentBarackObamabackingIndia'squestforpermanentmembershipoftheUNSecurityCouncil,India sees a newmomentum for the expansion of thetopdecision-making forumof theworldbody. "TheUS

report


standards-settingauthorityforallprescriptionandover-the-counter medicines, is setting up a new facility atGenomeValley, in the outskirts ofHyderabad,with aninvestment of $15million. It will be the largest site forUSP outside the US, housing analytical R&D, micro-biology,micro-analyticalandorganicsyntheticchemistrylabs, besides boosting facilities to conduct trainingprogrammes.

McDonald's India Plans

McDonald’sIndianfranchiseeplanstosetup30newrestaurantsinsouthernandwestern India this year.

Bharti Infratel –IBM Tie-up

Bharti Infratel has chosen IBM toprovide ‘intelligent site operations' to over 32,000Bharti Infratel tower-sites across 11 telecom circlesin India.

Dell Centre in Coimbatore

Dell is settingupasecondcentre,across1,50,000sqft, on its 7.2 acre campus in the Coimbatore Hi-TechInfrastructure Private Limited Special Economic Zone.With a seating capacity of 1,500, the centre will golive this year.

Cognizant Investment

On the back of 40% revenue growth, Cognizant willinvest more than $500 million till 2014 to expand itscampuses to add over 8 million sq ft to house over55,000 employees. It will create additional softwaredevelopmentandtraining facilities inSEZs inChennai,Pune,CoimbatoreandKolkata.

GE Aviation- Air India Pact

GE Aviation has signed a20-yearenginemaintenanceagreement with Air India.The agreement covers theMaintenance, Repair andOverhaul (MRO) of GE90aircraft engines.

Northrop Grumman -Pipavav Shipyard MoU

USdefensemajorNorthropGrummanandGujarat-basedPipavav Shipyard signed a MoU to co-operate andbuild capabilities formutual security interests betweenthe United States and India, at the recent Aero IndiaShow.

Jet Direct Flight to US

Jet Airways has sought permission to fly directly

support has come at a very opportune time as thiscampaign (of UN Security Council reform) has beengatheringmomentum,"saidMsNirupamaRao,ForeignSecretaryof India.

US-India Military Cooperation

TheUSseekstoexpandmilitarycooperationwithIndiaonarangeofissueslikenon-proliferationandcounter-terrorismtocatalysegreatersecuritycooperationinAsia,according to a Pentagon report. "Asmilitary capabilityand capacity increases in Asia, we will seek newways tocatalysegreater regionalsecuritycooperation.Leveraging our convening power, we will expand thescopeandparticipationofmultilateralexercisesacrosstheregion,"saidthereport,adding"Weseekexpandedmilitary cooperation with India on non-proliferation,safeguardingtheglobalcommons,counteringterrorism,andelsewhere.”

Indian-Americans on US Committee

Two Indian-Americans,MrGanpatMani, andMrVijaySazawal, havebeen appointedbyMrGary Locke,USSecretary of Commerce, to serve on the Civil NuclearTradeAdvisoryCommittee for twoyears.

NBA and Dept of State Visit India

TheUSDepartment of State and theNBAmade theirfirstjointtriptoIndiaaspartoftheir2011sportsenvoyprogramme, visiting Mumbai and New Delhi from 22February to2March.Theyconductedclinics,metwithstudents and attended the finals of theMahindraNBAChallenge.

India-US Corporate Watch

Jubilant Foodworks and Dunkin' Donuts

Dunkin'Donuts,oneofthelargestcoffeeandbakedgoodschainandStarbucks' biggest competitionin the US, is in talks to enterIndia through a franchisee dealwithJubilantFoodworks.Dunkin'Donutswilltargetthemasscoffeesegment in thecountry.

Quiznos in India

Denver-based restaurant chainQuiznos plans to openitsfirstlocationinIndiasoon.Ithasawardedfranchisingrights for the restaurant in southern India to Mr ArjunValluri,anestablishedfranchiserestaurantoperator,whoplans toopen40Quiznos locations in India.

US Pharmacopeia

United States Pharmacopeia (USP), an official public

report


to New York from next winter. The flights could be either fromDelhi or Mumbai and the airline wants to fly on all seven daysaweek. The airline at present flies toNew Yorkwith a stopoverat Brussels.

CIL -P& H MoU

Coal India Ltd has signed a Rs 590-core deal with the US-basedminingequipmentmakerP&H,forbuyingtwo42cumshovelsandtheirmaintenance for 17 years.

IBF Members in the News

Wockhardt

Drug maker Wockhardt Ltd has inked a strategicpactwithUS-basedSheffieldBio-SciencetosupplyWockhardt's recombinant insulin to cell culturemarkets globally. Sheffield would have exclusive sales anddistribution rights for its recombinant insulin in these markets. Itestimated the potential in the cell culturemarkets at around $50million.

Tata Jv with Lockheed Martin

LockheedMartinCorpandTataAdvancedSystems,awhollyownedsubsidiary of Tata Sons Ltd, announced the formation of a newjoint venture company - Tata Lockheed Martin Aerostructures, formanufacturing aerostructures for the C-130 aircraft produced byLockheedMartin. The facility is export oriented.

L&T valves

Engineering major Larsen & Toubro said it is the first Indianindustrialvalvemakertoreceivethecoveted‘N'and‘NPT'stampfrom the American Society of Mechanical Engineers (ASME).L&T'svalvefacilityinCoimbatorethatfocusesonhigh-endvalvesfor nuclear and thermal power has received the certificate ofauthorisation.

nIIT- zend Join hands

IT training company NIIT Ltd has announced a strategic alliancewithUS-basedZendTechnologiestooffertrainingprogrammesandcourses on PHP Web technology. PHP, a programming languageused for buildingWeb applications, runs an estimated 35% of theworld'swebsites includingFacebookandYahoo.NIITplanstotrainabout 80,000 professionals on this technology over the next threeyears..

hCL Tech –virginia renew Contract

HCL Technologies has renewed its contract with the state ofVirginia,asmoregovernmentdepartmentsseekto lowercostsby giving away non-core work. Government sector contractsare being outsourced to Indian IT firms as more US stateslook to gain greater efficiencies and reduce costs. Expertssay this could get a bigger boost as the US federal budgetproposes to cut more than $61 billion from current spendinglevels this year.

.... YourQuality Training Partner

Visit us at : www.cii-iq.in

For further details, please contact:

[email protected]

Forthcoming Programmes

March & April 201121-22 March, Pune

Workshop on Producing Zero Defect Through Statistical Techniques

21-22 March, ComibatoreWorkshop on Quality Maintenance to

achieve Zero Defect Status

23 – 25 March, BangaloreCompetency Mapping & Assessment –

Certification Programme

23 – 25 March, GurgoanWorkshop on Strengthening Management

Representative Skills: Compliance to Excellence

25-26 March, KolkataTwo Day Programme for Upgrading

Assessors to 2010

5-6 April, BangaloreWorkshop on Assessment for Business

Excellence for Small and Medium Businesses

6 – 7 April, DelhiFSCC & PAS 220 Internal Auditor Programme

7 April, DelhiSymposium on REACH regulations & their future impact on exports of chemicals and

articles to Europe

8 April, MumbaiSymposium on REACH regulations & their future impact on exports of chemicals and

articles to Europe

9 April, BangaloreSeminar on Hospital Infection Control

12-14 April, BangaloreWorkshop on Assessment for Business

Excellence for Large Business Organisations

15 – 16 April, DelhiWorkshop on General Requirements on Hygienic and Sanitary Practices to be

followed by all Food Business Operators

report


EastBiharInteractive Session on France7 February, Patna

DuringhisvisittoBihar, theConsulGeneralofFrancein Kolkata, MrJ e a n - L o u i sRysto, met therepresentativesofleadingindustriesand institutes ofBihar to discussthe investment scenario and potentialareasof collaboration.

Trade with China11 February, Patna

In an interactive session, Mr ZhangLizhong, Consul General of China,discussed the prospects and potentialsof trade and investment between IndiaandChina.

ChhattisgarhFinex Chhattisgarh

19 February, Raipur

Finex Chhattisgarh had dedicated Sessions on PolicyDimensionforFinancialInclusion,BankingandFinancefor InclusiveGrowth,PersonalWealthCreationthroughCapitalMarket, andRecentTrends inFundRaising.

JharkhandSession on Indirect Taxes10 February, Jamshedpur

The session on Indirect Taxes featured an elaboratepresentationonCentralExciseandServiceTax for theManufacturingandSteelSector.

OdishaCampus Connect 12 February, Bhubaneswar

About 135 engineering, MCA and BCA students andfacultymembers frommajor institutes of North Orissaattended a Campus Connect programme in InfosysBhubaneswar,organizedbyCII toexpose them to thebest in class learningenvironment and techniques.

Finex Odisha 201112 February, Bhubaneswar

The Conference and Exhibition – ‘Finex Odisha 2011’explored different financing options and avenues forwealthcreation.MrJKMahapatra,PrincipalSecretary,Finance,Odisha,was theChiefGuest.

IT Awards25 February, Bhubaneswar

The5thITAwardCompetitionprovidedaplatformforbothusersandserviceproviderstopresenttheirbestpractices

Satyajit Singh, Chairman, CII Bihar State Council; and Jean-Louis Rysto, Consul

General of France

Zhang Lizhong, Consul General

of China

Amitabh Khandelwal, Director, Directorate of Institutional Finance, Chhattisgarh, at Finex Chhattisgarh 2011 in Raipur

Session on Indirect Taxes in Jamshedpur

At the IT Awards ceremony in Bhubaneswar


regions

inITimplementation.Theawardsrecognizeandhonourthebest andmost innovative useof Information Technologytoenhancecustomerserviceandsatisfaction.

ICT Odisha 201125 February, Bhubaneswar

Dr Ajay Kumar, Joint Secretary, IT, Union Ministry ofCommunication&IT,wastheChiefGuestatICTOrissa.DrOmkarRai,DirectorGeneral,STPI,andMrPKJena,Commissioner-cum-Secretary, IT,Odisha, also spoke.

West Bengal Infra East3 February, Kolkata

Va r ious i s suesand chal lengesin urbanizat ion,different financings t ruc tu res andinnovative urbaninfrastructureswerediscussed in thevarious sessionsof the Infra EastConference. Mr Sovan Chatterjee, Mayor, KolkataMunicipalCorporation,was theChiefGuest.

India-Korea: Growth Opportunities 17 February, Kolkata

ACEOs'SessiononIndia-Korea:GrowthOpportunities,wasaddressedbyMrKimJoong-Keun,AmbassadorofRepublicofKorea.Thesessionhighlightedthebusinessopportunities inRepublicofKorea for industry inWestBengal.

Destination East 201117 – 18 February, Kolkata

DestinationEast2011washeldtobrandandmarketthetourismpotentialofeasternandnortheasternIndiaandtheAndamanandNicobarIslandstovariouscountries.Theinitiativehosted51buyersfromMalaysia,Thailand,Singapore, Bangladesh, Vietnam, Myanmar, UK andGermany. The buyers visited tourism destinations inOdisha,Bihar,AssamandvariouspartsofWestBengal.InOdishaandBihar,theinternationaltouroperatorsandtravelagentsalsometwiththelocaltourismstakeholdersandgovernmentofficers.ThiswasfollowedbyaBuyerSellerMeetwherein49 sellers from Indiametwith thebuyersover 700pre scheduledB2Bmeetings.

Roundtable Meet on Netherlands 21 February, Siliguri

CIINorthBengalZonalCouncilorganisedaRoundtablemeet on Business Link Programme with Netherlands.MrJohnDeBruijin,CountryCoordinatorofNetherlands,interacted with participants on doing business withNetherlands.

SME East 201122 February, Kolkata

Dr Omkar Rai, Director General, STPI, New Delhi; Dr Ajay Kumar, Jt Secretary, IT, Union Ministry of Communication & IT; and P K Jena,

Commissioner-cum-Secretary, IT, Odisha, at ICT Odisha 2011 in Bhubaneswar

Sovan Chatterji, Mayor, Kolkata Municipal Corporation, inaugurating Infra East 2011

in Kolkata

Manabendra Mukherjee, Minister of Tourism, West Bengal, inaugurating Destination East 2011 in Kolkata

Dr.Arup Chattopadhyay, Chairman, MSME Sub-committee, CII Eastern Region; Dr Anup Chanda, Addl Chief Secretary, MSME,

West Bengal; Kurush Grant, Chairman, CII Eastern Region; and N K Maini, Deputy MD, SIDBI, at SME East 2011 in Kolkata

CEOs’ Session Growth Opportunities, in Korea


SMEEast2011presentedauniquemulti-levelapproachtoassistsmallbusinessestounderstandthelatesttrendsin the business environment,andmarket their products andservices.Itbroughtconsultancyorganisations,traininginstitutesandagenciesintouchwithsmallenterprises. The focus was onTechnology, Ways to ImproveCredit Rating, and VendorDevelopment for SourcingOpportunities.DrAnupChanda,AdditionalChiefSecretary,MSSE,WestBengal,wastheChiefGuest.

‘Creating Value’ 24 February, Kolkata

ProfVenkatRamaswamy,HallmanFellowof Electronic Business and Professorof Marketing at the Ross School ofBusiness, University ofMichigan,USA,addressed members on ‘Co-Creating

MutualValuewithStakeholders.’

Building Healthcare Excellence 26 February, Kolkata

The CII Award for Healthcare Excellence has beenestablished to promote awareness of excellence asanincreasinglyimportantelementincompetitiveness.Not only does the award recognizes excellentHealthcare Providers, themodel also increases theunderstandingoftheelementscriticalforHealthcareexcellence.

CII Eastern Region Healthcare Subcommittee and theCIIInstituteofQualityjointlyorganisedanAppreciationProgrammeon theAward.

Prof Venkat Ramaswamy

Sensitization Programme for Building Healthcare Excellence in Kolkata

NorthChandigarhInteraction on Chandigarh 18 February, Chandigarh

MrVKSingh, the newly appointed FinanceSecretaryof Chandigarh, interacted with members about thedevelopmentofITParkPhaseIII.Healsoupdatedaboutthe administration’s plan of providing e-governanceservices.MrSingh invitedCII to join theadministrationtoinitiatemoreprogrammes,schemesandITIsforskillsdevelopment,

DelhiDoing Business with the UN 14 – 15 February, New Delhi

The seminar was an interactiveplatformbetweenUNProcurementDivision (UNPD) representativesand Indian business houses inorder to encourage and increase participationin the United Nations Global Marketplace. Thesession highlighted the 10 principal guidelinesof the UN procurement system with emphasison best value for money, fairness, integrity andtransparency, and focusonenvironment friendlypractices.

Astep-by-stepprocessofthepre-registrationandregistrationprocesstobidforcontractswithmorethan20UNagencieswasdiscussed.

HaryanaStrengthening Customer Relationships24 February, Gurgaon

The workshop helped participants learn to sellconsistently and effectively and develop confidence intheir customerapproachand interactions.

Vikram Hans, Vice Chairman, CII Chandigarh; Scot Slessor, Consul General of Canada; V K Singh, Finance Secretary, Chandigarh Administration, and

Nitin K Peshawaria, Chairman, CII Chandigarh

Zubain Irani, Chairman, CII

Delhi

regions


Jammu & KashmirPre Budget Memorandum Presented 9 February, Jammu

CII members, led by Mr Vicky Mahajan, Chairman,CII Jammu & Kashmir State Council, called on MrAbdul Rahim Rather, Minister for Finance, Jammu &Kashmir, to present CII’s Pre Budget Memoranda forthestate.Thekeyrecommendationsfocusedonpower,infrastructure, agriculture, horticulture and floriculture,tourismand taxation.

Agri Conclave 201118 February, Jammu

Improved inves tments , be t te rproductivity and strengthening ofmarketing linkages are the need ofthehourandcanhelpgiveagriculturesector the much needed fillip, saidMr Ghulam Hassan Mir, Minister ofAgriculture, J&K, while inauguratingthe2ndAgriConclave.Invitingindustryparticipation to help revive this sector, the Ministerpointedoutthatthissectorhasimmenseemploymentpotential, but low profitability and uncertainty onreturns are driving the youth away.

A rural kiosk, a CII-Aircel initiative to provide readyinformation like weather updates and mandi rates tothefarmerswasalsoinaugurated.FarmersfromKathua,

Samba,Udhampur,JammuandReasiattended theConclave.

RajasthanHR Conclave 201111 – 12 February, Jaipur

The 4th edition of the HR Conclavewas inaugurated by Mr Shivraj Patil,Governor of Rajasthan. The conclave

CII members presenting the Pre-budget Memorandum to Abdul Rahim Rather, Finance Minister, Jammu & Kashmir

featuredaCEO’sWorkshop,conductedbyAonHewitt,focusingonStrengtheningtheCorporateDNA,EmployeeEngagement andTeamBuilding.

EventsIT / ITES Conference 16 February, New Delhi

Mr Ronald B Allarey, Ambassador of the Philippinesto India released the CII–PwC Report on ‘Changinglandscape and emerging trends – Indian IT / ITeSIndustry’ at the IT / ITES Conference – Changinglandscape;EmergingTrends.

“The Philippines and India have unique andcomplementary strengths, for the IT / ITES sector”,he said.

Theconferencefocusedonunderstandingandadoptingnew developments and best practices worldwide inthis sector.

Shivraj Patil, Governor of Rajasthan

Shashank Tripathi, Executive Director, PwC, Ronald B Allarey, Philippine Ambassador to India, and Partap K Aggarwal, Chairman,

CII NR Committee on ICT & Emerging Technologies

Ghulam Hassan Mir, Minister

of Agriculture, Jammu & Kashmir

regions


regions

SouthSAARC Trade Promotion Network Meeting1 - 4 February, Goa

This Trade Promotion Network Meeting was heldto further develop and promote regional economicintegrationwithinSAARC.A comprehensivework planhas been framed until the end of 2012, based on thedeliberationsmadeduring thenetworkmeeting.

Webinar with P&D Creative Co. Inc4 February, Chennai

The webinar introduced the American organizationP&D Creative Co., Inc, which is looking for businesspartnership in India.

Auto Delegation from Japan 8 February, Chennai

Theseminaron‘ProcurementofAutoComponentsfromSouth India’ was followed by B2Bmeetings with thevisiting JapaneseDelegation. Theeventpresented thecurrentsituationof theautocomponent industry in theSouthernRegion,andfacilitatedbusinessmatch-makingforvisitingJapanesecompanieswithIndiancompaniesbased inSouthern India.

Investment Opportunities in France 24 February, Bangalore25 February, Hyderabad

Mr. Guillaume Page, Inward Investment Officer, Investin France Agency, presented investment opportunitiesinhis country to Indiancompanies.

Theseminarsfacilitateddiscussionsbetweenmembersand the delegation from Invest in France Agency onissuespertainingtovisa,workconditionsandinvestmentopportunities inFrance.

Andhra PradeshLet’s Vote Green Rally5 February, Hyderabad

FlaggedoffbyMr.AKKhan,CommissionerofPolice,Hyderabad, the rally involved corporates and citizensin creating environmental awareness and promotingbicycling as a way to reduce ozone depletion. About500 cycles were distributed to poor and deservingschool students.

Balanced Scorecard 11 February, Hyderabad

The workshop helped organizations understand andadopttheBalancedScorecardasaframeworktoimproveboth strategicperformanceandoperational results.

Indian Agriculture19 February, Hyderabad

Focussing on the theme ‘Are we heading for aMalthusian Crisis?’, the conference brought togethervariousstakeholdersintheagriculturalsector-industry,scientificcommunity,academicians,farmergroupsandgovernmentofficials forcrosspollinationofnew ideas,technologies,andmethodologies toaddress the issueof foodandnutrition security in India.

HR Training Session 25 February, Hyderabad

As the last of the HR Training Sessions, the session

Let’s Vote Green Rally in Hyderabad

Conference on Indian Agriculture in Hyderabad

Guillaume Page, Inward Investment Officer, Invest in France Agency; Lionel Petit, legal expert in French migration laws, Karl Waheed,

Paris; and D V Manohar, Chairman, Shri Shakti Resorts & Hotels Ltd at the Seminar in Hyderabad


regions

on ‘Developing HR Competency Framework’ helpedparticipants understand the basics of designing acompetency framework, and aligning it to various ecosystems in theorganization.

KarnatakaWorkshop on Foundation for Profitability4 & 5 February, Bangalore

The workshop addressed SME members on financialmanagementprocesseswhichinvolvefinancialplanning,cashflowandERP.Itfocussedonthecash-to-cashcycle,andhowIT(ERP+BusinessIntelligence)helprunthebusiness. Factory tours of Magod Laser and KTTMLgave theparticipantsa feelofhow the implementationof these systems establishes smooth and efficientmanagementof operations.

Doing Business in France8 February, Bangalore

A team from the French law firm, Franklin Societe D’Advocats, visited Bangalore to exchange ideas withmembers of CII Karnataka seeking to do businessin and with France. They presented current businessopportunities in France and discussed the prevailingeconomic climate.

Roundtable on Bavaria15 February, Bangalore

DrSchleicher,Pe rmanen tSecretary tothe Ministryof EconomicA f f a i r s f o rt h e S t a t eof Bavaria,describedthei n ves tmen topportunitiesi n Bava r iawith specialreference toautomotive, aerospace,machinery, and ICT.

Design Sensitisation Seminar 18 February, Bangalore

The seminar was organized to enhance MSMEcompetitiveness and productivity, using Designintervention at various functional levels. It providedtechnical advice on design methodology, benefits ofdesign and expert advice on solutions on real timedesignproblems.

CFO Conference 2011 25 February, Bangalore

TheannualconferencecoveredtheEconomicOutlookfor2011andBeyond;SuccessfulStrategiesforOptimizingForecasting; Optimizing Communication with KeyInvestors;CreatingaScalableBalanceSheetforFutureGrowth Potential: and Best Practices; Challenges inimplementing IFRS.ABanquetSessionhadthe theme‘Lessons from the Past, Leadership for the Future.’ ACII-CRISILreporton‘LeadershipAgendaforCorporateIndia in theNextDecade’was released.

KeralaImproving Workplace Efficiency 23 February, Kochi

Theworkshopofferedacomprehensiveunderstandingofthe5Sand3Mmethodanditsimplementation,alongwithacquiring self-discipline, resolving logistical problems,improvingworkefficiencyandensuringquality.

PuducherrySupply Chain Management22 February, Puducherry

The training programme introduced the key conceptsand core requirements needed to enable a business toorganizeandrunanefficientSupplyChain.ItcoveredBasicInventory Planning and Management, Warehousing andStorage,LogisticsandDistributionManagement,etc.

Upgradation of ITIs 22 February, Puducherry

Themeeting explained the CII ExcellenceModel, andthe roles and responsibilities of ITI and the IndustryPartner, under the upgradation of ITI scheme thru thePPPmodel.

Recent Initiatives of ESIC23 February, Puducherry

Thesessionhelpedmembersunderstandvariousissueswith respect to the recent initiatives of the EmployeesState Insurance Corporation. Ms. Padmaja Nambiar,

Aroon Raman, Chairman, CII Karnataka, with Dr Hans Schleicher, Permanent Secretary to the

Ministry of Economic Affairs, Bavaria

Subroto Bagchi, VC & Gardener, Mindtree Ltd, Raman Uberoi, Sr Director, CRISIL Ratings, CRISIL Ltd, Indraneel Roy Chaudhury,

Convenor, Policy Advocacy Panel, CII Karnataka, and S Chandrasekhar, Vice Chairman, CII Karnataka


regions

Additional Commissioner, and Mr S Sankaralingam,Deputy Director, Regional Office, ESIC, Puducherryinteractedwith themembers.

Tamil NaduLean Accounting19 February, Chennai

MrBrainHMaskell, President BMA Inc, explained theunderlyingprinciplesof leanaccountingand theneedto change from traditional accounting, control andmeasurement methods to a Go-Forward plan for anorganisation. Lean accounting helps an organizationincrease profits: it involves employees, createsaccountability, and empowers the workforce to beinnovative.

SPEED 22 February, Chennai

The3rdeditionofSPEED-SouthernProsperitythroughEnhanced Economic Development, was organised toquantify and project the strengths of the SouthernDistricts of Tamil Nadu by creating hubs, satellite andcorridors through business linkages. The event alsowitnessedthereleaseofthereport‘Destination-SouthTamilNadu.’

Smart Eco-Systems 24 February, Chennai

The conference deliberated on factors, internal andexternal, towards developing smart cities as futuredestination to sustainable living. The discussionsexplored the emerging needs of global citizens vis-a-vis challengesdue to thepaceof development; factorlimitations-transitionfromruraltourban;opportunitiesandchallengesofnewercities;planningandguidelinesfor sustainability; localisedgovernance, etc.

Zones

ChennaiDesign Sensitisation Seminar 2 February, Chennai

TheseminarenabledMSMEsunderstand theneed forcontinuousimprovement,andvalueadditionforexistingproductsandservicesthroughimprovementsindesignmethodology,withafocusontransportation,automobiledesign, and industrial design for engineers.

CII Services 7 February, Chennai

The interactive session was held to understand theneeds and requirements of members and present tothem thegamutof servicesofferedbyCII.

TrichyFamily Business Sensitization 1 February, Trichy

The session sensitized members on howto sustain a family business and face thedifferent challenges thatmayarise.

Vijayawada & VisakhapatnamProject Management4 February, Vijayawada

Thesessionscoveredduringtheworkshopwere practical projectmanagement skills;howtoincreasebuy-infromindividualswhoexecute theprojectwork;andplanning to

ensureproject success.

Leadership and Relationship11 February, Visakhapatnam

Theworkshopstressedtheimportanceofcreatingandmaintaininghealthy relationships.

Session on Sri Lanka 18 February, Visakhapatnam

MrVadivelKrishnamoorthy,Sri Lankan Deputy HighCommissionerforSouthernRegion,discussedpossibletrade and investment tiesbetween Sri Lanka andV i sakhapa tnam. Thesession helped projectVisakhapatnamasanidealinvestment and tourist destination.

Vadivel Krishnamoorthy, Sri Lankan Deputy High Commissioner for

Southern Region; and Capt. Sriram Ravi Chander, Chairman, CII Vizag Zone

R Dinesh, Jt MD, TV Sundaram Iyengar & Sons Ltd; T Kannan, MD, Thiagarajar Mills Ltd; K Allaudin, Principal Secretary to the Chief Minister (Monitoring), Tamil Nadu; Rajeev Ranjan, Principal Secretary, Industries, Tamil Nadu; Nandini Rangaswamy, Chairperson, CII Tamil Nadu; and Dr S Aravind, Chairman, CII Madurai Zone, and

Administrator, Aravind Eye Hospital


regions

Interactions with ANSI9 February, Pune 10 February, Ahmedabad

Interactive sessionswereorganizedwith theAmericanNational Standards Institute (ANSI) to share the ‘5StandardsDirectories’whichhavebeendevelopedunderthe Indo-US Cooperation Programme in cooperationwith theBureauof IndianStandards.TheseDirectorieshighlightthetechnicalrequirements(standards,technicalregulations,andconformityassessment)applicableintheUSmarketforvariousindustrysectorslikeITequipment,water purification, petroleum equipment, constructionequipment and telecomequipment.

GujaratCFO Conclave 2011 4 February, Vadodara

The conclave highlighted three key functions thatare re-defining the value proposition of CFOs in theorganization:corporategovernance,unlockingenterprisevalueandmanaging risks.

Best Marketing Practices5 February, Ahmedabad

TheconferenceidentifiedthekeychallengesfacedbyIndiancompanies at every stage in themarketing process, andthestrategiestobeadoptedtoovercometheseforIndiatoemergeasapreferredglobalbusinessdestination.

Workshop on Storage Techniques10 February, Surat

The workshop discussed how to control costs in theareaof storageofmaterials.

Members’ Meet 10 February, Bhavnagar

An interactivemeetingwith industrymembersand localIndustry associations was held to discuss how CII canbemoreeffectiveintheregion,andthekindofactivitiesCIIshouldundertakefor thedevelopmentof theregion.

Workshop on HRM12 February, Rajkot

The workshop discussed the practical applications ofreliabilityengineeringstrategies todealwith realworldproblems.

Mission from Ohio, USA 14 February, Ahmedabad

AsevenmemberdelegationfromFranklinCounty,Columbus,Ohio,interactedwithselectmembersonvariousopportunitiesavailable in the state for bilateralbusiness relationships; focusing onalternative energy, biotechnology, andInformationTechnology.

2nd Maintenance Excellence Mission23 February, Bhavnagar

The mission gave the participants an overview of thefundamentalsofworldclassmaintenanceasaprocessandculture for long termorganizationalbuilding.

Investing in France23 February, Ahmedabad

The seminar on ‘France, ExpectMore’ highlighted thelatest reforms implementedby theFrenchGovernmenttoreinforcetheattractivenessofFranceasaninvestmentdestination,withaspecialfocusonInternationalmobilityandthemeasurestofacilitatethedeploymentofIndianemployees toFrance.

Manufacturing Excellence Mission 25 February, Surat

ThemissiontoABBandBombardierhelpedparticipantsunderstand the implementation of office 5s, leanmanagement and waste reduction. It also showcasedthebestpractices implemented in thehostcompaniesin theareasofSupplyChainandHumanResources.

FinTelligence Series25 February, Vadodara

TheFinTelligenceplatformisextremelybeneficialtoCEOs,CFOs,andfinanceandaccountsmanagersofanybusinessenterprise. The 5th edition of FinTelligence Series- theExchange and Networking Forum for finance decisionmakers,was titled ‘OverviewofRatings&Outlook2011.’

West

Ramani Iyer, Forbes Marshall Pvt Ltd; Leslie McDermott, Programme Manager – International Development, ANSI, USA; and

Amitabha Ray, Indian Representative, ANSI, in Pune

At the CFO Conclave in Vadodara

John O’Grady, Commissioner,

Franklin County, Ohio, USA


regions

Madhya PradeshMSME Mission to Gwalior10 February, Indore

ThemissiontoSRFLtdandGodrejConsumerProductsLtd in Gwalior was organised to sensitize MSMEindustriesaboutasystematicapproachtotheShopFloorlikeProduction,Quality,Maintenance,CostReduction,Inventoryandotherbestpractices.

MP Pharma Vision 202011 February, Indore

The Summit discussed issues and roadblocks whichpharma companies are facing, and deliberated onstrategiestogainsignificantmarketshareintherapidlyexpandingdomesticpharmaceuticalmarket.

Corporate Governance 14 February, Indore

ThesessioncreatedawarenessonCorporateGovernanceandSustainabilityAccounting tools andconcepts.

MaharashtraSustaining Growth through Education 31 January, Pune

DrRKShevgaonkar,Vice-Chancellor,UniversityofPune,spoke of the need to percolate the education to ruralIndia.Thefundamentalsubjectsarethemostneglectedbystudentsandmorestressshouldbegiventoenhancethese skills at the root level, he said.

DrGaneshNatarajan,Chairman,CII-WRTaskForceonHigher Education & Vice Chairman and CEO, ZensarTechnologies Ltd, expressed the idea of creating 50knowledgecitiesandbuildingasustainableecosystemto live andwork there.

Using Shainin Techniques3 – 5 February, Pune

The programme on ‘Manufactur ing ProcessCharacterization and Optimization using Shainintechniques’explainedhowtocharacterizeandoptimizemanufacturing processes to achieve high productivity,lowcostanddesiredqualitylevelsandalsotooptimizeprocesseswithmultiplequalityparameters.

CII – Symbiosis Finishing School 5 February, Pune

Aspart ofCII’sAffirmativeAction forSC/STstudents,CII in associationwith theSymbiosisGroup, launchedthe11thand12thBatchof theFinishingSchool.

Environment & Sustainability4 February, Mumbai

The conference on ‘Success Stories on Environment &Sustainability’spreadawarenessandsharedbestpracticeson Sustainable Development to build a robust businesscase for incorporatingsustainability inbusinessmodels.

6th Best Kaizen Competition8 February, Nashik

TherehasbeenamassiveexpansioninthenumberofcompaniesparticipatingintheBestKaizenCompetition,overtheyears.The6theditionofthecompetitiondrewparticipation from around 121 companies from themanufacturingandengineering industry.

Doing Business in France 10 February, Mumbai

The session advised Indian companies on how tostructure their entry into the French market, setup subsidiaries and branches, draft and negotiate

Alok Purohit, COO, Dainik Bhaskar; Uttam Ganguly, Chairman, CII MP State Council, & MD, Bend Joints Pvt Ltd; Kailash Vijayavargiya,

Minister for Commerce & Industry, MP; and Mahendra Hardia, Minister for Health, MP

Launch of 11th and 12th batch of CII-Symbiosis Finishing School

Conference on Sustainable Development in Mumbai

Session on Doing Business in France


commercialagreements,andupdatedonthefullgamutof French law issues that affectbusiness ventures.

Interactive Session on Customs 15 February, Mumbai

CIImembers interactedwith theChief Commissionersof Customs directly to clarify pressing issues such aschoiceofCFS,problemin1.5versionofIcegateServer,RMS, and inordinate delay in customs clearance ofimportconsignments,tonameafew.

Focused Improvement 14 -15 February, Pune

ImplementationofTPMinthetrueessencewouldresultin improving both the top and the bottom line of anyorganisation. One of the key essences of TPM is toeliminatethelossesthatareoccurringintheorganizationthere by incurring the bottom line, said Mr S Yuvaraj,Counsellor, TPMClub India.

Bavarian Business Seminar16 February, Pune

Dr Hans Schleicher, Permanent Secretary, BavariaMinistry for Economic Affairs, said that Bavaria is anInvestor-friendly state in Germany, with innovation-orientedeconomicpolicies.

Doing Business with the UN 17– 18 February, Mumbai

The UN Procurement Division's Business and Vendor

regions

RegistrationSeminarwasheldtoincreaseactivevendorregistration, particularly for business entities fromdeveloping countries forUN andUN agencies. Seniorrepresentatives from the United Nations SecretariatProcurement Division advised companies on howtheycouldbecomesuccessful suppliersofgoodsandservices to theUN.

Interaction with the Chief Minister 18 February, Mumbai

During an interaction with select CEOs and MDs,Mr Prithviraj Chavan Chief Minister of Maharashtra,addressed various industry issues related to octroi,automobiles and automobile components, incentivesto biotech units situated in private bio-technologyparks, infrastructure, skill development, finance andrevenue, etc.

Interaction on Affirmative Action 23 February, Pune

The session focused on the Supplier DiversityModelwhichwill linkScheduledCaste andScheduledTribepeople with Corporate India. Through this model,industrywillprovideequalaccesstopotentialbusinessopportunities for SC/ST candidates to participate assupplier of goods or services within the corporatesupplychainwithoutcompromisingonqualityorcost.

International Boating Conference 25 February, Mumbai

Thefirst internationalBoatingConferencewasheldto recognize Boating as a separate industry andoptimalutilizationofIndia'swaterfront,bothcoastaland inland.

Business Partners Meet 201126 February, Aurangabad

Themeet brought buyers and vendors in contactwithnew market territories and offered opportunities forstakeholderstounderstandtherequirementsoftoday’schanging and competitive business world. The focuswason theengineering,automotive,autocomponentsandelectrical sectors.

Dr Hans Schleicher, Permanent Secretary, Bavaria Ministry for Economic Affairs; Ashwini Malhotra, Vice Chairman, CII Pune, and MD, Weikfield Foods Pvt Ltd; and John Kottayil, Representative -

State of Bavaria in India

Interaction on Customs

Seminar on ‘Doing Business with the UN’

Prithviraj Chavan, Chief Minister of Maharashtra, interacting with CII members

05 newsmaker - cii

Documents