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CII Communique August 2015
1.
2. 2 | August 2015 Communiqué
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Contents
19 spotlight
CII Leadership Missions
to the UK and USA
High-powered CII CEOs delegations,
led by Mr Sumit Mazumder, President,
CII, visited the UK and USA, to meet
with diverse stakeholders, including
Government institutions, Industry
bodies, academia, think tanks, media
and the diaspora, to deliberate on
important economic and policy-level
issues and explore opportunities
for collaborations with India.
06 Cover story
Celebrating Skills
Taking forward its concerted efforts towards creating aspirations for skill development,
CII celebrated World Youth Skills Day in a mega pan-India event, through parallel
workshops in 19 centres across the country, engaging delegates from Industry,
representatives from Government, skill training providers and young skill trainees.
29 Public Policy
CII Compendium of Select MPLAD Initiatives
CII’s Compendium of Select Development Initiatives under the
MPLAD Scheme, a first of its kind qualitative study, showcases
innovative and successful projects implemented under the
scheme by parliamentarians.
39 Food & Agriculture
Launched the Surakshit Khadya AbhiyanTM
CII, with partner organizations, has launched the
Surakshit Khadya AbhiyanTM
, a focussed
pan-India Food Safety Awareness Campaign
to strengthen nation-wide action on
Safe Food for All.
Volume 37 No. 8 August 2015
3. 6 | August 2015 Communiqué
T
aking forward its concerted efforts towards creating aspirations for skill
development, CII celebrated World Youth Skills Day in a mega pan-India event
across 19 centres: Agartala, Ahmedabad, Aizawl, Baddi, Chennai, Daman,
Dehradun, Gangtok, Hyderabad, Itanagar, Jaipur, Lakshadweep, Mumbai,
Patna, Port Blair, Puducherry, Silvassa, Shillong, and Udhampur.
Parallel workshops across the length and breadth of India brought together delegates
from Industry, representatives from Government, skill training providers and young
skill trainees.
The workshops were specially conducted at the State and regional level to help local
Industry and State Governments, as well as the youth workforce, to better understand
the features of Skill India and the National Skill Development Mission.
The National Skill Development Mission has been established to converge and consolidate
all skill development initiatives across the country. The objectives of the mission cover
long term and short term skill training structures as well as alignment of skilling with
employer demand and student aspirations. The Mission’s comprehensive institutional
implementation structure has three tiers, with each tier being led by the Prime Minister,
the Union Minister (Independent Charge) of Skill Development & Entrepreneurship; and
the Secretary, Skill Development & Entrepreneurship, respectively.
The events in each of the 19 CII centres saw keen participation from all quarters. The
detailed discussions spanned skill development opportunities for the youth and drew
attention to the critical need for marketable skills and Industry-Government partnerships.
There was focus on institutionalizing Industry-Institute linkages and partnerships in all
skill interventions.
The workshops were followed by viewing of the live telecast of the launch of Skill India
by the Prime Minister in New Delhi. The CII event in Shillong was chosen as one of
the 13 centres for interaction with the Prime Minister.
The celebrations also featured the distribution of certificates to students and trainers
by Government representatives and senior Industry members. Job offers were made to
students in-line with the celebration of Skill India. Successful entrepreneurs were felicitated
at the event in Aizawl.
CII Celebrates
World Youth
Skills Day
cover story skill development
CELEBRATING SKILLS
4. Communiqué August 2015 | 7
Recognizing the importance of skill development, the
United Nations has designated 15 July as World Youth
Skills Day. In India, the Ministry of Skill Development
& Entrepreneurship celebrated the day as World Youth
Skills Day across the country.
In a special launch programme in New Delhi, Prime
Minister Narendra Modi unveiled ‘Skill India,’ the new
National Policy on Skill Development & Entrepreneurship
2015, and rolled out the Pradhan Mantri Kaushal Vikas
Yojana (PMKVY).
In his roadmap for Skill India, the
Prime Minister announced:
• National Policy for Skill
Development & Entrepreneurship
To align supply with demand,
bridge existing skill gaps,
promote industry engagement,
operationalize a quality assurance
framework, leverage technology
and promote apprenticeship.
• National Skill Development
Mission (NDSM)
To create convergence and
expedite cross –sectoral decisions
through a high-powered decision-
making framework, and converge,
coordinate, implement and
monitor skilling activities on a pan-India basis.
• Common Norms for Skill Development
Schemes
To streamline the whole spectrum of skill development
processes and systems such as inputs/output,
funding/costing norms, third party certification and
assessment, cost committees, etc.
• Prime Minister’s Kaushal Vikas Yojana
To encourage skill development for youth by
providing monetary rewards for
successful completion of approved
training programmes.
• Skill Loans
• ITI Industry Interface
The six medal winners of the
WorldSkills Oceania Competition
were recognized at the function.
Amongst the winners, the sole Gold
Medallist, Ms Neha Ulhas Chande,
was supported by CII in Beauty
Therapy.
CII supports seven trades for the
WorldSkills Competition: Beauty
and Therapy, CNC Milling, CNC
Turning, Electronics, Hair-dressing,
Mechatronics, and Welding.
Making India the Skill Capital of the World
cover story
Narendra Modi, Prime Minister of India, with Rajiv Pratap Rudy, Minister (I/C) of Skill Development & Entrepreneurship, and
Sunil Arora, Secretary, Ministry of Skill Development & Entrepreneurship with Neha Ulhas Chande (3rd
from left)
the sole Gold Medallist, supported by CII, and other winners of the WorldSkills Oceania competition, in New Delhi
‘The National Skill
Development Mission
w i l l c o n v e r g e ,
coordinate, implement
and monitor skilling
activities across
India. It will also be a vehicle to
achieve the objectives of the National
Policy for Skill Development and
Entrepreneurship 2015, which will
provide policy direction and guidance
to all stakeholders in the skill
development and entrepreneurship
ecosystem.’
Rajiv Pratap Rudy,
Union Minister (I/C) for Skill
Development & Entrepreneurship
5. 8 | August 2015 Communiqué
Eastern Region
The celebration of World Youth Skills Day by CII in the
Eastern Region (ER), including the Andamans, was a
glorious display of solidarity to the country’s resolve
to reap demographic dividends from its young men
and women.
The day was marked by discourses held in specially-
convened sessions, and also insightful interviews to the
media, both print and electronic, by Industry members
at Patna in Bihar, Port Blair in the Andaman and Nicobar
Islands, Bardang in Sikkim, and Kolkata and Siliguri in
West Bengal.
CII members shared ideas with senior Government
officials on how to make the Skill India campaign
a resounding success. They described the Prime
Minister’s call for skilling youths in India as
‘appropriate, topical and relevant,’ especially as the
country aspires to become a thriving manufacturing
hub.
In Port Blair, CII teamed up with the local Department
of Labour, and the
Andaman Chamber of
Commerce & Industry,
to organize a session
to discuss how Industry
can complement the
Government’s skilling
initiatives. The session
was addressed by senior officials of the Andaman &
Nicobar administration, including Mr Raajiv Yaduvanshi,
Commissioner-cum-Secretary, Ms Sakshi Mittal, Secretary,
General Administration, and Mr Madhu Sudhan Baidya,
Labour Commissioner, among others.
The programme in Patna came alive with interesting
discussions on how top-notch skills can transform a
backwater into a land of prosperity. The panelists included
Mr R P Vaishya, Director, MSME Development Institute,
Patna; Mr Sanjay Goenka, Vice President, Bihar Industrial
Association; Mr Sanjay Shrivastava, Director, National
Institute of Fashion Technology, Patna; Mr S P Sinha,
Chairman, CII Bihar, and Senior Advisor, Bihar Hotels
Ltd; and Mr P K Sinha, Vice Chairman, CII Bihar, and
cover story
Patna
Port Blair
Siliguri
‘CII believes that there could not have been a better time than now to be an active partner in
the skill development space. The governance structure has evolved with a dedicated Ministry
of Skill Development & Entrepreneurship. This is evident from the significance that skill training
has achieved. CII members have worked in synergy with stakeholders in the last decade and
are prepared to take the skill agenda forward to achieve Speed, Scale and Sustainability.’
Pramod Bhasin, Chairman, CII National Committee on Skill Development, and
Founder, Genpact, and Chairman, The Skills Academy
‘Skilling India is a prerequisite for
our Industry to compete in a global
market. Our youth need quality
demand-responsive training. Indian
Industry recognizes the Skill India
movement as a definite resolve to
drive competitiveness and increase productivity.
A skilled nation is the backbone for realizing the
Make in India vision and transforming India into a
manufacturing leader.’
Sumit Mazumder, President, CII, and
Chairman & Managing Director, TIL Ltd
‘The launch of Skill India is at a most
opportune time, when skill development
is being discussed alongside economic
prosperity. CII welcomes the focused
approach and looks forward to a fruitful
and meaningful skill movement. The
creation of a dedicated Ministry of Skill Development
& Entrepreneurship has given a fillip to skills. CII
believes that the Skill landscape, led by a dynamic
Ministry, will enable India to become the Skill Capital
of the World.’
Chandrajit Banerjee, Director General, CII
6. 10 | August 2015 Communiqué
Director, Astric Solutuions,
among others.
The session at Bardang,
organized jointly by the
CII North Bengal Zonal
Council and Yi Sikkim,
was attended by about
150 participants, including
students and local
entrepreneurs. Notable
among the speakers were Mr H K Sharma, Special
Secretary-cum-Director, Capacity Building, Department
of Human Resource Development, Sikkim, Mr Ratan
Bihani, Vice-Chairman, CII North Bengal Zonal Council,
and Director Deepak Polymers Pvt Ltd; Mr Dewaker
Basnet, Chair, Yi Sikkim, and Chief Learning Officer,
24 Hours, and Mr Sonam Palden Barfungpa, Principal,
Advance Technical Training Centre.
In Kolkata and Siliguri, Doordarshan conducted
interviews with a number of senior CII members
including Mr Aloke Mookherjea, Chairman, CII (ER) Task
Force on Innovation, and Chairman, Howden Solyvent
(India) Pvt Ltd; Mr S Radhakrishnan, Co-Chairman, CII
(ER) Task Force on Innovation, and Director – Advisory,
Last Peak Data Pvt Ltd; Dr Rupali Basu, Chairperson,
CII (ER) Task Force on Women Empowerment, and
President & CEO (ER), Apollo Hospitals Group, and Mr
Anish Chakraborty, Chairman, Seacom Skills University,
among others.
North Eastern Region
CII, in collaboration with the Department of
Skill Development & Employment Generation,
Arunachal Pradesh, celebrated World Youth Skills Day
at ITI Yupia, Itanagar.
Mr K J R Burman, Commissioner, Skill Development
& Employment Generation, Arunachal Pradesh, said
that skilling of youths in various trades would not only
enhance their employability but would also contribute
to the State and society.
Mr Subu Tabin, Director, Skill Development & Employment
Generation, Arunachal Pradesh, welcomed the focus on
skill building.
Sessions were also held in Shillong and Aizawl.
Northern Region
To promote vocational education and showcase the
importance of technical training and the imparting of
key skills as required by Industry, special sessions were
organized in Himachal Pradesh, Rajasthan, Uttarakhand
and Jammu & Kashmir.
In Dehradun, CII collaborated with the Uttarakhand Skill
Development Mission to commemorate World Youth
Skills Day with a programme that drew attention to the
critical need for marketable skills as the only possible
solution to unemployment. The session also stressed the
need for much stronger and active Industry-Government
partnerships for skilling the youth.
“The Uttarakhand Skill Development Mission is
focusing aggressively on
institutionalizing Industry–Institute
linkages and partnerships in all
skill interventions. Efforts are
underway to synergize the skill
development initiatives of various
State Government departments
with the active support of CII,” said
cover story
Jaipur
Jammu
Baddi
ItanagarAizawl
Shillong
7. Communiqué August 2015 | 11
M r A k s h a t G u p t a ,
Additional Secretary,
Training & Technical
E d u c a t i o n , L a b o u r
& E m p l o y m e n t ,
Uttarakhand.
In Jammu, CII tied up
with ITI Udhampur for
a session commemorating World Youth Skills Day.
Addressing the session, Mr Pawan Kumar Gupta,
Minister of State of Finance & Information Technology,
Jammu & Kashmir, highlighted the imperative to fill
the existing skill gap between Industry requirements
and academic curricula. Industry should take a lead
in upgrading and harnessing the skills of the youth
in all existing trades as well as new trades, as per
their requirement, he said.
More than 200 delegates, including CII members,
Government officials, training partners and trainees,
participated in the session in Jaipur, organized jointly
with the Rajasthan Skill & Livelihoods Development
Corporation. Mr Kali Charan Saraf, Minister of Higher
& Technical Education, Rajasthan, was the Chief Guest,
while Kum. Gurjot Kaur, Additional Chief Secretary &
Director General, HCM RIPA; Mr Gaurav Goyal, MD,
RSLDC; Mr A K Anand, Director – Training, Rajasthan,
and Mr S K Poddar, Chairman, CII Rajasthan, and CMD,
Mayur Uniquoters Ltd, were amongst those present.
The session in Baddi focused on key new trades and the
skilling requirements of Industry in Himachal Pradesh.
It also called for active collaboration between Industry,
Institutes and the Government in the skilling arena.
Southern Region
CII Southern Region (SR) organized interactive sessions
on the occasion of World Youth Skills Day in Tamil
Nadu, Puducherry and Telangana. The sessions were
attended by over 600 participants including State Labour
Ministers, Labour Secretaries, and senior Government
officials, as well as representatives from Industry and
various skill development organizations.
Addressing the session in Chennai, Mr C Samayamoorthy,
Director, Tamil Nadu Skill Development Corporation, said
the Government has made Skill Development a thrust area,
and invited Industry to collaborate with the Government on
various initiatives on skill development and employability.
The Government, he said, is ready to provide funding on
various projects, with the focus on sectors like Automobile,
Leather, Manufacturing, Retail, FMCG, etc.
Mr MK Ranganath, MD, Grundfos Pumps India Pvt
Ltd, described the various activities and initiatives of
CII in Skill Development. There was also a detailed
presentation on Skill Development in the Logistics
Sector.
Mr P Rajavelu, Minister of Labour & Employment, Mr
YLN Reddy, Commissioner of Labour, and Mr R Mihir
Vardhan, Secretary, Labour, Tourism & Agriculture, from
the Government of Puducherry, and Mr S Narasimhan,
Chairman, CII Puducherry, and MD, Sattva Logistics
Pvt Ltd, joined around 300 participants for the session
in Puducherry.
In Hyderabad, Mr Nayani Narasimha Reddy, Home
Minister and Minister for Labour & Employment,
Telangana, Mr Ravi Chandran, Vice Chairman, Sri Vishnu
Educational Society, Ms Vanitha Datla, Chairperson, CII
Telangana, and Executive Director & CFO Elico Ltd, and
Mr Nrupender Rao, Vice Chairman, CII Telangana, and
Chairman, Pennar Industries Ltd, attended the session,
which drew 130 participants.
Western Region
On the occasion of World Youth Skills Day, the
Government of Maharashtra and CII jointly organized
a live viewing session of the Prime Minister’s address
in Mumbai. Dr Ranjit Patil, Minister of State for Skill
Development & Entrepreneurship, Maharashtra, was
the Chief Guest at the session that was well-attended
by Industry members, private and Government training
providers, students, and other stakeholders in the
skilling ecosystem in Maharashtra.
In Ahmedabad, Mr Dilipkumar Thakore, Minister of
State of Labour and Employment, Gujarat, delivered
Hyderabad
Puducherry Chennai
cover story
8. 12 | August 2015 Communiqué
the keynote address at the session, and awarded
certificates to successful candidates of skill training.
Dr Sandhya Bhullar, Director, Employment & Training,
Gujarat, made a presentation on Skill Development
in the State. Mr Piruz Khambatta, Chairman, CII (WR)
Sub-Committee on CSR and Affirmative
Action, and Chairman, Rasna
International Pvt. Ltd also attended the
session, along with over 125 delegates
from Industry, the skill training sector
and Government officials.
CII and the Union Territory Administration
of Dadra and Nagar Haveli, jointly
organized a live viewing session of the
Prime Minister’s address in Silvassa. Mr Ashish Kundra,
Administrator, Daman, Diu, and Dadra and Nagar Haveli,
was the Chief Guest for the event, which was well-
attended by Industry members and ITI students.
1980s
CII (then the Association of Indian Engineering
Industry - AIEI) started its Skills journey way back
in the 1980s when its members participated actively
through Industry-Institute Committees to impact
curriculum in Regional Engineering Colleges (RECs)
Industrial Training Institutes (ITIs) and Advanced
Training Institutes (ATIs). They also introduced
new curricula for emerging Industry sectors like air
conditioning, refrigeration, auto components, light
engineering, etc.
1989
Launch of the WorkSkills Competitions for 205
workers of the Manufacturing sector in Kolkata.
The competition has been the pioneer initiative in
making skills aspirational in India. Since then, the
competition is held once in two years within every
region of India. The competitions have evolved over
time and now follow the rules and regulations of
the World Skills Competitions.
1991
With economic liberalization taking effect, CII
transitioned from being Manufacturing-centric
to including Services. As the economy opened
up, there was a need for higher production and
increased productivity, especially in the automobile
industry. The WorkSkills Competitions became
bigger, with more workers being nominated by
their organizations to participate.
1990s
This decade witnessed strengthened regional and
pan-India presence of CII Skills. CII increased
interventions with ITIs and ATIs across India.
2004
CII partnered the Government of India to set up
the India Centre of Skill Development in Kabul, to
assist Afghanistan and its youth during the country’s
reconstruction.
2006
1000 Afghan youth were provided skill training in
construction trades in India. The knowledge acquired by
these youth was cascaded by them in Afghanistan.
2007
¨ 1st
Global Summit on Skill Development
¨ Industry began adopting ITIs in a Public Private
Partnership (PPP) model. CII members adopted
398 ITIs.
Mumbai Ahmedabad
Silvassa
CII’s Skills Journey
cover story
9. Communiqué August 2015 | 13
¨ CII supported the first contingent to the international
WorldSkills Competition. Since then, CII has been a
part of the support system of the Indian contingent
in every edition of the competition.
¨ CII became the first national assessor of the
Modular Employable Scheme.
2008
¨ 1st
National Summit on Skill Development.
¨ CII became the founding member of the National
Skill Development Corporation.
¨ Establishment of 3 Skill Hubs in economically
weaker areas: Chhindwara, Madhya Pradesh,
Bhiwadi, Rajasthan, and Kendrapara, Odisha,
in partnership with Industry, with the focus on
construction trades.
2009
¨ Establishment of Rural Skill Gurukuls
in association with Pan-IIT (PARFI). These
residential technical education centres have
100% placement assurance from CII members
through a NABARD microfinance scheme.
2010
¨ CII started working towards focused policy
advocacy and intervention in Apprenticeship
reforms. CII played a vital role in the creation
of the Apprenticeship (Amended) Act 2014.
¨ CII has been instrumental in the development of
the National Employability through Apprenticeship
Programme (NETAP). A PPP of AICTE – CII –
NSDC - Team Lease University, NETAP is the
largest employability scheme, covering over 5
lakh students.
2012
First Sector Skill Council (SSC) set up on Healthcare.
CII currently supports 12 SSCs, which are Industry-
led bodies to create national occupational standards
and define job roles for their respective sectors.
2013
¨ CII commissioned a study on ‘Scheme of
Upgradation of 1396 ITIs in PPP Mode’- a
comprehensive analysis and recommendations on
the scheme with a sample study of 100 ITIs.
¨ With the introduction of Corporate Social
Responsibility as a legal mandate for companies,
CII took up the mantle of on-ground skill initiatives
for various private organizations and PSUs:
– HPCL CSR ‘Swavalamban Project’: 14,800
Below Poverty Line youth trained over 9 years
in 16 centres across 14 States, offering 17
courses with special focus on women, people
with disabilities, and Scheduled Castes &
Scheduled Tribes youth.
– Aditya Birla CSR Project ‘Kaushalya’: Skill
training for 2000 underprivileged youth each
year, through an outreach of 5 training centres,
in Gujarat, Karnataka, Uttar Pradesh, West
Bengal and Tamil Nadu, offering courses in
Welding, Retail Sales, Stitching, Tailoring,
Fitter, Beauty & Hair care, and IT/ITES.
2014
¨ 1st
edition of the Annual India Skills Report
launched in partnership with Wheebox-
PeopleStrong and LinkedIn, to capture the
demand and supply side of skilled workforce,
collecting data from 3 lakh students and 125
corporates across 29 States.
¨ CII provided recommendations for the New
National Policy for Skill Development &
Entrepreneurship, which was launched on 15
July 2015 by the Prime Minister.
¨ Global Summit on Skill Development organized
with Australia as the partner country. The Summit
drew over 100 delegates and experts from
around the world.
2015
¨ CII signed a MoU with the Ministry of Labour
& Employment to set up three Model Career
Centres to provide counselling, assessment, soft
skill training and placement services.
¨ CII organized the Skills delegation for Make In
India to Hannover, Germany.
¨ Indian contingent participated in WorldSkills
Oceania. The sole Gold Medallist at the
competition was supported by CII.
¨ Series of pan-India workshops are being
conducted on Apprenticeship reforms, with
detailed interaction between Industry leaders
and Government policy-framers to help the
former, adopt apprentice training programmes
in their respective organizations.
¨ Celebration of World Youth Skills Day on 15 July
in 19 centres across India to disseminate Skill
India, the National Policy of Skill Development
and the National Skill Development Mission at
the regional and State level.
cover story
10. Communiqué August 2015 | 15
cover story
I
ndia has just three lakh youth in apprenticeships,
which is far too low for a workforce that is growing
by 12 million a year. Japan and Germany have three
million and one million apprentices, respectively.
Unarguably, apprenticeship is a vital component in the
success of Make in India and Skill India. The Prime
Minister’s visit to Germany and India’s participation in
Hannover Messe are a testament to India’s growing
interest to adopt the best practices of apprenticeship
models from other countries. This, coupled with the
newly-amended Apprenticeship Act of 2014, should
give the right fillip to apprenticeship in India.
The Apprenticeship Act of 1961 has been amended
to address the immediate concerns within the skill
eco-system, making it more responsive to Industry
and the youth. Some of the key features of the
amendments are:
• Change in the number of apprentices at the
establishment level, instead of trade-wise
• Engagement of apprentices in optional trades which
are not designated
• Inclusion of non-engineering occupations
• Outsourcing of basic training to other institutes
• Submission of returns and other information through
an online portal, to name a few.
Germany has a highly robust apprenticeship system
integrated with formal education. To better understand
this framework, CII and the Ministry of Skill Development
& Entrepreneurship recently organized a workshop
in New Delhi. A series of workshops are being held
throughout India to propagate the amendments of
the Apprenticeship Act 2014 for greater Industry
participation.
The workshop brought together experts from Germany
and India. Three focused breakout sessions were
conducted by German experts to facilitate better
understanding of the dual system of vocational
education, and how it can be applied to the Indian
context.
• Systemic Reform: Develop a comprehensive/
systematic vision and discuss requirements for
implementation
• Local Governance: Train the in-company trainers
and define core processes for quality assurance,
assessment, certification and guidance
• Revamp curriculum and connect to Industry
The first two workshops in the series were held in
Vadodara and in Chandigarh on 6 July.
Jyotsna Sitling, Joint Secretary, Ministry of Skill Development & Entrepreneurship, and Director General, National Skill Development Agency;
Rajesh Agrawal, Joint Secretary, Ministry of Skill Development & Entrepreneurship; Sunil Arora, Secretary, Ministry of Skill Development &
Entrepreneurship; Arjun Uppal, Vice President- Corporate Affairs, DCM Shriram Ltd, and Dilip Chenoy, MD & CEO, National Skill Development
Corporation (NSDC), at the Apprenticeship Workshop in New Delhi
Apprenticeship Workshop in VadodaraApprenticeship Workshop in Chandigarh
Pan-India Apprenticeship Workshops
11. 16 | August 2015 Communiqué
Toshihide Takahashi, MD, Panasonic Welding Systems India; Prof Masaharu Sato, JWES;
Mukesh Kumar Gupta, Vice President, Maruti Suzuki Training Academy, and
Prof Fumiyoshi Minami, Osaka University, at the Technical Seminar and Workshop on
High Precision Arc Welding Technology in Gurgaon
A Step towards Skilling India
Welding is an important competency for India’s
skilled youth force to ensure the success of ‘Make
in India.’ In line with this mission, CII, Panasonic Welding
Systems, and the Japan International Cooperation
Agency (JICA) are conducting four technical workshops
and demonstrations in India for Indian trainers in High
Precision Arc Welding.
Over 350 trainers, from Industry
as well as Government training
centres, are expected to benefit
from this series of workshops to
be held in Gurgaon, Hyderabad,
Ahmedabad and Chennai.
Additionally, 12 trainers will visit
Japan over the period of one year
to understand Japanese welding
technology. The aim is to cascade
this competency and knowledge
to students and other workers in Industry.
The eminent faculty, including Prof Fumiyoshi Minami,
Osaka University, and Prof Masaharu Sato, Japan
Welding Engineering Society, covered topics including
the importance of welding quality control, and certification
systems as practiced in Japan.
cover story
12. 18 | August 2015 Communiqué
A
b r e a k f a s t
session with
Mr Adi Godrej,
Past President, CII,
and Chairman, Godrej
Group, on 22 July in
Mumbai, kicked off the
first event in the CII
Governance Series
2015-16.
Launched in 2005,
the CII Governance
Series facilitates the
dissemination of
changing trends of
corporate governance through interactive sessions
with CEOs. The focus is on governance, accountability,
compliance and trust, fostering a culture of good
governance, and building corporations of the future.
Addressing the session, Mr Adi Godrej advocated the
need for robustness in corporate governance and said
that “organizations need to be principle-based and not
rule-based, because principles are harder to get around
than rules.” Cautioning against more laws, he said,
“the need of the hour is not more rules but effective
enforcement of the laws. Legislation alone is not a
panacea to good corporate governance,” he said.
Laying stress on the overall well-being of the company, he
advised against the pursuit of endless profit. “Promoters
should desist from actions that are only in their interest
and not in the interest of the company.” Corporate
governance tends to be confused as protection of
minority stakeholders, whereas, in reality, it should
promote the long term good of the company, he felt,
emphasizing that all stakeholders should be considered
equal from a corporate governance point of view.
Enforcing the need for a balanced Board view in
governance, Mr Godrej said that it is very important to
get broad-ranging suggestions, including points of view
that are different, since dissenting views are also likely
to be good for the company. He explained the need to
encourage whistle-blowers, saying they could be good
for a company in the
long term.
Speaking on the
benefits of corporate
g o v e r n a n c e , M r
Godrej asserted that
good governance,
b e i n g t h e
responsibility and
privilege of each and
every stakeholder of
the company, benefits
the company by
providing competitive
advantage in the
global market, helping raise capital widely, easily
and cheaply, and leading to good employee morale
with high productivity.
Talking about the challenges, Mr Godrej shared how
managements are at times faced with many dilemmas
to balance short, medium and long term goals in
the interest of the company. The best management
is that which takes a reasonably long term view of
things, he felt.
In the current economic environment, governance is not
just a compliance mechanism, it is also an enabler for
good corporate performance. Research has shown that
there is a direct correlation between good governance
and improved financial performance, observed
Mr Pradeep Lankapalli, MD, India, and Global Head of
Operations Centers, Thomson Reuters.
Earlier, in his introductory remarks, Mr. Sanjay Nayar,
CEO, KKR India Advisors P Ltd, asserted the criticality
for adopting best practices in corporate governance
for Indian companies to compete for capital and
talent globally.
Mr Anthony Crasto, Partner, Governance Risk and
Compliance Services, KPMG India, wrapped up the
session by acknowledging how, in the long term,
shareholders are ready to pay extra premium for good
corporate governance, without which companies run
the risk of perishing.
CII Governance Series 2015-16
Governance needs to be based on
Principles, not Rules
Adi Godrej, Past President, CII, and Chairman, Godrej Group; Sanjay Nayar,
CEO, KKR India Advisors Pvt Ltd; Pradeep Lankapalli, MD India, & Global
Head of Operations Centers, Thomson Reuters, and Anthony Crasto, Partner,
Governance Risk and Compliance Services, KPMG India,
at the CII Governance Series 2015 - 16 in Mumbai
india inc governance
13. Communiqué August 2015 | 19
T
he United Kingdom (UK) is undoubtedly a popular
business destination for Indian companies. India
has emerged as the third largest investor in the
UK economy, with more Indian FDI being pumped into
the UK than the rest of Europe combined. Similarly, the
UK is the largest among G-20 investors in India. Given
such mutual affinity and existing partnerships, there
is huge potential for enhancing UK-India cooperation
in a wide array of sectors. Forging engineering and
manufacturing partnerships under the ‘Make in India’
initiative and jointly developing globally competitive
skills, particularly, present mega opportunities for
collaboration. With new policies in India specifically
aimed at improving the ease of doing business, there
is significant scope to enhance foreign institutional
investment into India.
To strengthen the case for UK-India partnership and
reaffirm their commitment to business ties, a high-
powered CII CEOs delegation, led by Mr Sumit
Mazumder, President, CII, and Chairman, TIL Ltd, visited
the UK from 8-10 July. During the course of two and
a half days, beginning with a briefing meeting with Mr
Ranjan Mathai, High Commissioner of India to the UK,
the delegation met with diverse stakeholders including
Government institutions, Industry bodies, academia,
think tanks, media and the diaspora, to deliberate on
spotlightindia & the world
important economic and policy-level issues and examine
opportunities for India-UK collaboration.
The Future of India-UK Economic Relations
With the theme of ‘The Future of India-UK Economic
Relations,’ the annual conference organized by CII in
partnership with the Confederation of British Industry
(CBI), held on 8 July in London, highlighted the overall
collaborative potential, and future engagement in the
UK-India landscape.
Opening the conference, Mr Chandrajit Banerjee,
Director General, CII, called for ironing out issues in
labour mobility to facilitate a quantum jump in business
exchanges. Mr Sumit Mazumder spoke of the growing
appetite among small and mid-scale businesses to
go global.
The conference, said Mr Ranjan Mathai, is ‘aptly timed,’
as both the Indian and the UK economy mark high levels
of growth, while Mr John Cridland, Director General,
CBI, pointed to the ‘golden opportunity’ to further trade
and investment linkages between both economies.
Mr Kumar Iyer, British Deputy High Commissioner
(Mumbai), and Director General, India, UK Trade and
Investment (UKTI) quoted Prime Minister Modi as he
referred to the UK-India relationship as an ‘an unbeatable
combination’ for commercial collaboration.
CII Annual CEOs
Delegation to the
United Kingdom
John Cridland, Director General, Confederation of British Industry (CBI), Kumar Iyer, British Deputy High Commissioner (Mumbai) and
Director General, UKTI India, Ranjan Mathai, High Commissioner of India to the UK, Sumit Mazumder, President, CII, and
Chairman & Managing Director, TIL Ltd, and Chandrajit Banerjee, Director General, CII, at the CII-CBI Conference in London
14. 20 | August 2015 Communiqué
At a business panel moderated by Mr Simon Moore,
Director International, CBI, Mr Sunil Munjal, Past
President, CII, and Chairman, Hero Corporate Services
Ltd, and Mr Dhruv Sawhney, Past President, CII, and
CMD, Triveni Turbines Ltd, shared perspectives on the
Make in India initiative. Mr Rajive Kaul, Past President,
CII, and Chairman, Nicco Corporation Ltd, spoke of Build
India and the larger infrastructure opportunity for UK
companies while Mr Salil Singhal, CMD, PI Industries
Ltd, made a strong case for joint initiatives under the
Skill India campaign.
Institutional Investors – India Roundtable
A discussion on India’s investment potential was held
with foreign institutional investors at the London Stock
Exchange, on 8 July. Supported by SBICAPS and
Penningtons Manches, the discussion brought key
British institutional investors, including Arden Partners,
Carmignac, Elara Capital, Federated Investors, Fidelity
Growth Partners, Jefferies, Jupiter Asset Management,
Marshal Funds, Payden & Rygel, PIMCO and others, to
the table to candidly exchange views on India.
Mr Ranjan Mathai outlined India-UK cooperation through
the Economic and Financial Dialogue, while Mr Sunil
Kaushal, Regional Chief Executive, India & South Asia,
Standard Chartered, spoke of recent liberalization in
the Financial Services sector in India.
Manchester-India Business Engagement
Furthering regional-level business forays into the UK,
the CII delegation interacted with diverse stakeholders
from Manchester, who shared the economic strengths
and capabilities of this dynamic and promising area for
business investment and engagement. The interaction
was supported by Manchester’s Investment and
Development Agency (MIDAS), and hosted by Instinctif
Partners.
The speakers included representatives from the
University of Manchester, Manchester United, the
Salil Singhal, CMD, PI Industries Ltd; Rajive Kaul, Past President, CII, and Chairman, Nicco Corporation Ltd; Dhruv M Sawhney, Past President,
CII, and CMD, Triveni Turbine Ltd; Sunil Kant Munjal, Past President, CII, and Chairman, Hero Corporate Service Ltd, and Simon Moore,
Director International, CBI, at Panel on ‘Make in India, Build India and Skill India,’ during the CII-CBI Conference in London
At the interaction with the delegation from Manchester
CII CEOs delegation with British institutional investors at the London Stock Exchange in London
india & the world
15. Communiqué August 2015 | 21
Manchester Business School, University of Bolton, and
Manchester-based companies including BDP, Deloitte,
Epistem and M&I. CII promised to consider a business
delegation to Manchester in the near future.
India’s Leadership in the Commonwealth
CII entered into a founding strategic partnership with
the Commonwealth Enterprise and Investment Council
(CWEIC), which was cemented over a Marlborough
House Conversation on ‘India’s Leadership in the
Commonwealth’ on 9 July in London.
The agreement was signed between Mr Chandrajit
Banerjee, and Lord Marland of Odstock, Chairman,
CWEIC. The two organizations will initially focus on
Skills, SMEs and sustainability.
Panellists at the business session, moderated by Mr Justin
Mundy, Director, The Prince’s Charities’ International
Sustainability Unit, discussed ways to promote
sustainable business within the Commonwealth.
Meeting with Thought Leaders
To generate thought leadership and exchange
perspectives on geopolitical and economic affairs,
the CII delegates engaged in a closed-door discussion
with experts from Chatham House and the Eurasia
Lord Marland of Odstock, Chairman, CWEIC, and
Chandrajit Banerjee, signing a Strategic Partnership in the presence
of Rt Hon Hugo Swire, Minister of State, Foreign Commonwealth
Office, UK; Kamalesh Sharma, Secretary General of the
Commonwealth, Sumit Mazumder and Ranjan Mathai, in London
Group on 9 July in London.
The first discussion deliberated the dynamics of the
European economy and the potential impact on Indian
Industry. The second discussion focused on India’s
global trade integration and analysed India’s position in
the India-European Union (EU) Free Trade Agreement
talks, as well as in the upcoming order of trading routes
between emerging markets.
Interaction with British Media
The CII CEOs delegation had a closed-door meeting
with a stellar group of members of the British media,
hosted by Dr David Landsman, Executive Director, Tata
Ltd, and moderated by Ms Rita Payne, President of the
Commonwealth Journalists Association, on 9 July in
London. The discussion spanned India’s economic and
political engagements, including practical improvements
in the ease of doing business, changes in India’s
relationship with Pakistan, and the potential impact of
the EU referendum on Indian companies in the UK.
Make in India – Propelling Collaborations
A Business Roundtable on furthering business
partnerships under the ‘Make in India’ initiative, with
the CII CEOs delegation and members of the UK India
Business Council (UKIBC) was hosted by the High
Commission of India, on 9 July in London.
Mr Chandrajit Banerjee said that the main aim of the
‘Make in India’ campaign is for India to rise to the top 50
in the ‘Ease of Doing Business’ index. The UK, he said,
is supporting the Government of India in this endeavour
through initiatives such as ‘the Red Tape Challenge’
and the ‘One-in Two-out’ rule. CII, in collaboration with
KPMG, is tabulating the business-friendly best practices
of certain Indian States to enable other States to learn
CII delegation with thought leaders from Chatham House in London
At the ‘Make in India’ Business Roundtable in London
india & the world
16. 22 | August 2015 Communiqué
from these examples, he added.
Mr Alex Burns, CEO, Millbrook, presented an overview of
the Joint Venture agreement between Millbrook and the
International Centre for Automotive Technology, (ICAT)
an Indian Government organization, and appreciated
the ‘profound change’ in the ease of doing business
over the last one year.
The discussion expounded the Make in India agenda
through sector highlights in Pharmaceuticals, Defence
and Aerospace, Automotive, Tourism and Skills.
The subsequent reception hosted by High Commissioner
Mathai provided an excellent networking opportunity
for Indian and British businesses.
The CII delegation met with Rt Hon Oliver Letwin,
Minister for Government Policy, UK, at the Cabinet Office,
where he explained his country’s three-fold agenda with
regard to India: Encouraging Indian investments in the
UK; increasing UK exports to India, and developing
strong links between Indian and UK Capital Markets.
CII presented Minister Letwin with a document on CII’s
seven step strategy to enhance UK-India collaboration
and also a Grant Thornton-CII report on Indian
companies in the UK. CII made the case for UK officials
engaging more with Indian businesses, including the
appointment of a Minister for Business Engagement
with India, and requested the Minister to encourage
UK companies to invest through a consortia model
in India’s emerging Smart Cities, an approach CII is
piloting with Siemens and Hitachi.
CII also put forth the challenges of labour mobility in the
UK, citing specific cases. The Minister promised careful
consideration into this, and assured resolution.
The CII delegation held a productive meeting with Rt Hon
Lord Maude of Horsham, Minister of State for Trade and
Investment at the Department of Business, Innovation
and Skills, focusing on
enhancing UK-India trade
and investment ties.
To further the understanding
on India-EU Free Trade
Agreement consultations
and to bring Industry
on board, CII offered to
organize an interaction for
Lord Maude with business
leaders during his visit to
India in September this
year. CII also sought more
technology collaborations.
Select members from the CII delegation met Sir David
Metcalf, Chairman of the Migration Advisory Committee
(MAC), as well as Mr Tim Harrison, Head of the
MAC Secretariat. CII expressed concern on proposed
regulations restricting labour mobility in the UK, including
the imposition of a skills levy and increasing salary
thresholds for foreign professionals. The delegates
highlighted the contributions of Indian companies in
terms of investments and job creation in the UK. The
MAC agreed to meet with CII India Business Forum UK
members, to better understand their economic impact.
Select members from the CII delegation also called
on Mr Chris Hopkins, Business Relations Advisor at
10, Downing Street, who met the group on behalf of
Prime Minister David Cameron. They discussed ideas
to enhance UK-India economic cooperation, including
policy-level facilitation, such as allowing greater flexibility
in global talent mobility and appointing a Minister for
Business Engagement with India, as well as business-
level initiatives, such as collaboration on large scale
infrastructure projects, launching joint Sector-Skills
Councils, and encouraging an ‘Indo-British Partnership:
Phase II’ for the SME sector.
CII delegation with Rt Hon Oliver Letwin, Minister for Government Policy, Chancellor of the
Duchy of Lancaster, in London
Rt Hon Lord Maude of Horsham, Minister of State for Trade and
Investment, UK,(centre) with Sumit Mazumder and
Chandrajit Banerjee at the Department of Business,
Innovation and Skills, in London
india & the world
17. Communiqué August 2015 | 23
A
high-level CEOs
Leadership Mission
visited Washington
DC, United States, from
13 to 14 July. The
delegation included Mr
SumitMazumder,President,
CII, and Chairman &
Managing Director, TIL
Ltd, Dr Rajiv Modi, CMD,
Cadila Pharmaceuticals,
MrDeepKapuria,Chairman,
Hi-Tech Group, Mr Sukaran
Singh, CEO and MD, Tata
Advanced Systems Ltd,
and Mr Chandrajit Banerjee,
Director General, CII.
A principal programme
conducted as part of the
mission was a day-long
conference, ‘The Future of
the US-India Partnership:
Ten Years after the Civil
Nuclear Cooperation
Initiative’ organized by CII
in partnership with the
Carnegie Endowment for
International Peace on 13
July in Washington DC.
The conference brought
together Industry leaders,
think tank members and
key negotiators involved in
the civil nuclear agreement
to commemorate ten
years of the bilateral
partnership. The speakers
highlighted the need to
CII Leadership Mission
to the United States
Arun K Singh,
Ambassador of India
to the United States
Senator Mark Warner,
Co-Chair,
Senate India Caucus
Congressman Ami Bera,
Co-Chair,
Congressional
Caucus on India &
Indian Americans
Congressman
George Holding,
Co-Chair,
Congressional
Caucus on India &
Indian Americans
Senator John Cornyn,
Co-Chair,
Senate India Caucus
Members of the CII CEOs Delegation and the CII India Business Forum, USA, with
Ambassador Arun K Singh, at the Embassy of India, in Washington DC
Nisha Biswal,
Asst. Secretary of
State for South &
Central Asian Affairs,
US Dept of State
spotlightindia & the world
18. 24 | August 2015 Communiqué
spotlight
further deepen these strategic, economic, defence and
people-to-people ties.
Several CII delegation members, including Mr Sumit
Mazumder, Dr Rajiv Modi, and Mr Deep Kapuria, joined
by Mr Kaushik Basu, Chief Economist, World Bank,
participated in a panel discussion on how India can
face its investment and business challenges in order
to meet its growth and development objectives.
A second panel featured remarks by senior participants
of the US-India nuclear agreement negotiations,
including Mr Nicholas Burns, Harvard Kennedy School
of Government, USA, Mr Shyam Saran, National Security
Advisory Board, India, and Prof Philip Zelikow, University
of Virginia, USA.
Another panel brought together four former national
security advisors — Mr Stephen J Hadley and Mr
Tom Donilon from the United States and Mr MK
Narayanan and Mr Shivshankar Menon from India,
to discuss the global opportunities facing the United
States and India.
The conference was followed by a Gala Dinner, where
Mr Joe Biden, Vice President of USA, in his keynote
address, acknowledged the importance of the nuclear
deal in removing ‘the single largest irritant in the
relationship between the two greatest democracies,’
and paving the way for stronger economic, security,
and political mutual ties. He reminded the audience of
the importance of this partnership not just for the two
countries, but for the region and the world.
On 14 July, the CII CEOs mission met with key US
Government officials, including Ms Caroline Atkinson,
Deputy National Security Advisor for International
Economic Affairs, and Ms Catherine Novelli, Under
Secretary of State for Economic Growth, Energy, and
the Environment, to discuss key issues and concerns
in the US-India partnership and opportunities for future
collaboration.
Finally, the mission participated in the CII flagship event,
‘Indian Roots American Soil’ to highlight how Indian
investments into the US are helping to create wealth,
value and jobs for the US economy, at the US Capitol
in Washington DC on 14 July.
As many as 21 Members of Congress (House and
Senate) from across party lines attended the event
and spoke about the positive contributions of Indian
companies to the local US economy in terms of tangible
investments, job creation and community engagement.
Representatives from over 20 Indian companies from
diverse sectors, with investments and operations in the
US, attended the reception.
Mr Arun K Singh, Ambassador of India to the United
States, Senator John Cornyn and Senator Mark
Warner, Co-Chairs of the Senate India Caucus, and
Congressman Ami Bera and Congressman George
Holding, Co-Chairs of the Congressional Caucus
on India and Indian Americans, were amongst the
dignitaries at the event.
The reception, organized by the CII India Business
Forum (CII IBF), USA, was marked by the release of the
CII-Grant Thornton report ‘Indian Roots, American Soil,’
which showcases the geographical sprawl and positive
impact of Indian businesses operating in the US.
CII also organized a closed door discussion with
Mr Arun K Singh, prior to the event, where specific
issues and challenges faced by Indian companies in
the United States were addressed.
Swaminathan Aiyar, Consulting Editor, The Economic Times; Kaushik Basu, Senior
Vice-President and Chief Economist, World Bank; Sumit Mazumder, President, CII, and
Chairman & Managing Director, TIL Ltd; Deep Kapuria, Chairman, Hi-Tech Group; and
Dr Rajiv Modi, CMD, Cadila Pharmaceuticals, at the CII-Carnegie Conference in Washington DC
Joe Biden, Vice President of USA,
at the CII-Carnegie Gala Dinner,
in Washington DC
19. Communiqué August 2015 | 25
Mazumder, President, CII, and Chairman & Managing
Director, TIL Ltd. Our companies are deeply committed
to the US market and are well integrated into the local
communities where they are investing and creating jobs.
These Indian companies in America have Indian roots,
but are completely enmeshed into US soil, he said.
‘Indian Roots, American Soil’ is part of CII’s ongoing
effort to highlight the positive stories of Indian companies’
contributions to the US economy and society, said Mr
Chandrajit Banerjee, Director General, CII. India is now the
fourth fastest growing source
of investments into America
– this is a very critical aspect
of the burgeoning bilateral
US-India business story, with
an immediate and visible
positive impact on the local
communities where these
companies operate. It’s a
story that needs to be told
and re-told, he said.
The CII-Grant Thornton
s u r v e y r e s p o n d e n t s
represent diverse sectors
including pharmaceuticals,
telecommunications, financial
services, healthcare, materials
and manufacturing, media
and entertainment, tourism
and hospitality, engineering
and construction, automotive,
food and agriculture,
energy, and Information
Technology.
Sumit Mazumder; Congressman Pete Sessions; Congressman George Holding; Ambassador Arun K Singh;
Chandrajit Banerjee; Congressman Ami Bera; Sumani Dash, Director & Head, North America, CII;
Congressman Joe Kennedy; Congressman Todd Rokita; Vivek Sharma, Chairman, CII IBF, USA, and CEO,
Piramal Healthcare; and Congressman Chuck Fleischmann, releasing the report ‘Indian Roots,
American Soil’ in Washington DC
spotlight
India-based companies
are responsible for
creating tens of
thousands of jobs
and $15 billion in
investments across
the United States,
according to the latest
edition of the CII-
Grant Thornton report,
released on 14 July in
Washington DC.
For the first time, the
report, ‘Indian Roots,
American Soil,’ also
captures a State-by-State breakdown of tangible
investments made and jobs created by 100 Indian
companies doing business in the United States. New
Jersey, California, Texas, Illinois and New York are
home to the most Americans directly employed by
Indian companies. Texas, Pennsylvania, Minnesota,
New York and New Jersey have the highest Foreign
Direct Investment (FDI) from Indian companies, finds
the report.
Indian industry’s contribution to the US economy, across
States and sectors, has grown
stronger over the years.
Today, Indian companies are
not just investing and creating
jobs, they have also become
significant stakeholders in
the growth and prosperity
of local communities. Their
support extends to education
programmes and capacity-
building, said Ambassador
Arun K Singh, Ambassador
of India to the United
States. “The CII study draws
attention to the growing
contribution and influence of
Indian Industry, which forms
an important component
of our growing and vibrant
relationship with the United
States,” he added.
Indian Industry today is
bullish on the US-India
partnership, said Mr Sumit
Key Takeaways from the Report
• Together, 100 Indian companies employ more
than 91,000 people across 35 States and the
District of Columbia.
• The total value of tangible investments made by
these 100 companies exceeds $15.3 billion.
• The top five States in which Indian companies have
generated maximum employment are New Jersey
(9,278 jobs), California (8,937 jobs), Texas (6,230 jobs),
Illinois (4,779 jobs) and New York (4,134 jobs).
• The top five States in which Indian companies
have contributed the highest FDI are: Texas ($3.84
billion), Pennsylvania ($3.56 billion), Minnesota
($1.8 billion), New York ($1.01 billion) and New
Jersey ($1 billion).
• The average amount of investment received from
Indian companies per State is $443 million.
• 84.5% of the companies plan to make more
investments in the United States.
• 90% of the companies plan to hire more
employees locally in the next five years.
‘Indian Roots, American Soil’
20. 26 | August 2015 Communiqué
T
he globalization of Indian companies has
been generally viewed in India as a business
objective rather than a strategic national priority.
Developing countries are increasingly leveraging
Overseas Foreign Direct Investments, or OFDI,
as a route to access markets, technology and
resources.
For an individual company, globalization usually refers
to its investments outside national borders. This
definition may be taken further to include not just
OFDI, but also a company’s proportion of revenues
emanating from overseas technology and foreign
collaborations, access to overseas funds and staff
employed overseas.
Since 1991, India has opened up outward investments
in a calibrated manner in accordance with its foreign
exchange cover. OFDI from India progressively increased
from just $759 million in 2000-01 to $19.4 billion in 2008-
09. However, since then, it has been contracting due
to global economic developments. In 2014-15, India
invested just $1.8 billion overseas. The Manufacturing
sector is the preferred destination for Indian overseas
investments which have now acquired a globally
dispersed character.
Indian companies are
investing abroad to expand
their brand value, source
technology, access markets,
and leverage host country
policies, among other
goals.
Apart from investments, many
Indian companies generate
significant proportions
of their revenues from
operations overseas. They
raise External Commercial
Borrowings and access
overseas stock markets for
funds. Although aggregate
data is not available, Indian
companies are believed to
employ several hundred
Outward Foreign Investments:
The Strategic Perspective
thousand workers overseas.
The experience of Indian companies working abroad
has generally been beneficial to both India and the
host countries. Indian corporates display long-term
commitment and often work to enhance local capabilities
through engagement in skill development, vendor and
supply chain capacity-building, and community works.
Their management flexibility, respect for other cultures
and comfort level in working in diverse environments
is a plus point. They understand the local consumer
and tailor their products to specific segments of the
markets overseas.
There are many success stories of Indian companies
in their overseas markets. However, political, economic
and natural risks are magnified in foreign countries,
and some Indian companies have not met expectations
from their overseas investments.
There are security and strategic benefits to a stronger
overseas investment engagement. India will continue
to be dependent on oil and gas from overseas for
the foreseeable future and must attempt to maintain
access to key resources. Infrastructure assets are
also created and owned overseas through OFDI.
OFDI further needs to be promoted as it helps
Indian companies become
more competitive globally
as well as access new and
advanced technologies.
While it exposes the
Indian economy to global
vulnerabilities, the gains
outweigh the potential
threats, and OFDI should
be seen as a strategic
economic objective for
India.
Recommendations
• Strategic Objective: OFDI
should not be perceived as
merely a commercial activity
but as a strategic national
objective.
• Bilateral Agreements:
Outward Investments by India
Year FDI by India
` Billion US $ Million
2000-01 34.80 759
2001-02 66.15 1391
2002-03 88.03 1819
2003-04 88.86 1934
2004-05 102.02 2274
2005-06 260.32 5867
2006-07 677.42 15046
2007-08 756.43 18835
2008-09 905.39 19365
2009-10 718.36 15143
2010-11 782.57 17195
2011-12 517.94 10892
2012-13 387.68 7134
2013-14 568.60 9199
Source: Reserve Bank of India, Table 155, Handbook of Indian Statistics
india & the worldcomment
21. 28 | August 2015 Communiqué
Bilateral investment protection and promotion
agreements or bilateral investment treaties must take
into account the needs of Indian investors.
• Policy Framework: Avoidance of double taxation
and totalization agreements should be instituted with
key destination nations. Issues relating to business
and work visas must be consistently taken up with
other governments. Specific sectoral issues in
specific countries need to be addressed.
• Access to Finance: New windows for accessing
finance are required, especially for SMEs. The
EXIM Bank can play a more expanded role. An
interest rate subvention may be considered for key
investments.
• Sovereign Wealth Fund: The Government may
consider deploying a sum from foreign exchange
reserves for overseas strategic investments in the
form of refinance, bank finance, etc. Sovereign
guarantees would also be required.
• Public Sector Enterprises: PSEs should be
encouraged to be more active in acquiring overseas
assets, particularly infrastructure facilities.
• Government Support: Indian missions and posts
overseas should actively scout around for potential
investment opportunities and make them known to
Indian investors.
With greater experience in managing outward investments
after a period of a decade and a half, the next level of
engagement is now possible. OFDI must now be seen
as a strategic instrument to be deployed for a greater
Indian economic role in the world economy.
This article was contributed by Sharmila Kantha, Member,
Advisory Board, ‘Economy & Industry’ magazine.
oil seals, plastic injection moulds, clips, holders, bushes,
fasteners, bearings, batteries, and tyres.
Philauto was visited by importers and traders from
the Phillipines market, showing good interest for Indian
products.
The India Pavilion, an
initiative of the Ministry
o f C o m m e r c e a n d
Industry, and CII, to
promote ‘Brand India’
in international markets,
has been held, among
other countries, in Turkey,
Brazil, Argentina, USA,
Thailand, Indonesia, and
Singapore.
The India Pavilion at the 2nd
edition of PHILAUTO
2015, an auto fair in the Phillipines, was organized
by CII with support from the Ministry of Commerce
and Industry, India, and the Embassy of India, the
Phillipines. The India Pavilion at Philauto was inaugurated
by Amb. L D Ralte,
Ambassador of India to
the Phillipines, in Manila
on 17 July.
The show, with the
participation of several
I n d i a n c o m p a n i e s ,
showcased opportunities
for Indian Industry
in sectors such as
lubricants, gaskets and
India Pavilion at Philauto
Amb. L D Ralte, Ambassador of India to the Phillipines, inaugurating the India Pavilion at PHILAUTO 2015 in Manila
Amb. L D Ralte interacting with exhibitors
at the India Pavilion at PHILAUTO 2015
india & the world
22. Communiqué August 2015 | 29
M
s Sumitra Mahajan, Speaker of the Lok Sabha,
released the Compendium of Select Development
Initiatives under the Members of Parliament Local
Area Development (MPLAD) Scheme, compiled by CII,
in New Delhi on 23 July. The launch was attended by
Members of Parliament, and select Industry leaders.
The Compendium of Select Development Initiatives
under MPLAD Scheme is a first-of its kind qualitative
study, commissioned by the CII Public Policy Council
and the CII Foundation, focusing on innovative and
successful projects implemented under the scheme
by parliamentarians.
While several innovative projects have been undertaken
by Members of Parliament (MPs) successfully across
the country to meet the needs and aspirations of local
communities, most of the studies on MPLAD Schemes so
far have focussed on either percentage utilization of funds
or amendments needed to make the scheme more effective
and transparent. The CII MPLAD Compendium aims to fill
this gap and serves as a reference point to demonstrate
the realm of possibilities under the scheme, facilitating
sharing of experiences, knowledge and learnings.
The Compendium presents initiatives from 12 States and
8 different disciplines – health, education, sports, rural
and urban infrastructure, renewable energy, research
and development, livelihood generation, and social
empowerment. It leverages the best from the past and
provides ideas for making the future better. While most
of the focus is on success stories, a small section also
talks about some well-intentioned initiatives which could
not serve the desired purpose for a variety of reasons.
The Compendium contains a few recommendations to
public policy
make the scheme more effective and strongly advocates
for ‘projects to be demand-driven’ with ‘careful planning
and constant monitoring.’
Applauding CII’s efforts in collating and bringing out
the innovative and successful projects undertaken by
MPs, Ms Mahajan said the Compendium would help
build a positive perception, and encourage MPs to
take up more community development projects. The
Compendium is inspirational and conveys a strong
message that several ground-level initiatives are being
undertaken for the benefit of society, she said.
Ms Mahajan appealed to Industry to come forward and
supplement the efforts of the MPs in meeting the needs
and aspirations of local communities. With contribution
and support from Industry through CSR activities, big
projects could be undertaken using the MPLAD funds,
she suggested.
Mr Rakesh Bharti Mittal, Chairman, CII Public Policy,
Council, and Vice Chairman, Bharti Enterprises, said
that CII believes the MPLAD scheme is a strong initiative
to enable MPs to support the communities in their
constituency and resolve local issues, mostly related
to infrastructure. Leveraging the scheme, MPs across
party lines have initiated several pioneering projects.
Such initiatives should be publicized to inspire others to
utilize the funds for larger benefit, he said, expressing
the hope that the Compendium would serve as a
reference point, and spread best practices.
Ms Shobana Kamineni, Vice President, CII, and Executive
Vice-Chairperson, Apollo Hospitals Enterprises Ltd,
recommitted CII’s support and partnership towards the
social and economic development of the country.
Compendium of Select MPLAD Initiatives
Meenakshi Lekhi, MP; Shobana Kamineni, Vice President, CII, and Executive Vice-Chairperson, Apollo Hospitals Enterprises Ltd; Dr Satya Pal Singh,
MP; Rakesh Bharti Mittal, Chairman, CII Public Policy Council, and Vice Chairman, Bharti Enterprises; Sumitra Mahajan, Speaker of the Lok Sabha;
M Thambidurai, Deputy Speaker of the Lok Sabha; Geetha Kothapalli, MP, and Anoop Mishra, Secretary General of the Lok Sabha,
at the release of the CII Compendium of Select Development Initiatives under the MPLAD Scheme, in New Delhi
23. 30 | August 2015 Communiqué
T
he impact of external shocks has always been
a concern for Indian policy makers. Yet, in the
current scenario, external developments such
as the Greek crisis and the stock market meltdown in
China have had little effect on India. Instead, external
trends, in particular the decline in oil prices, have been
working in favour of the Indian economy. Indeed, a
benign outlook for India’s two key imports – oil and
gold – is expected to support a gradual recovery in
the Indian economy.
The average crude oil price for the Indian basket
declined from US$ 97 per barrel in 2014 to US$ 57 per
barrel in the first half of 2015, resulting in tremendous
savings for the country. The dollar value of India’s oil
imports is expected to drop below US$ 100 billion for
the first time in six years. Similarly, India’s gold imports,
which amounted to US$ 34 billion in FY2015 could
decline substantially. The current decline in gold prices
is being driven by the expected hike in US interest
rates later this year.
The International Monetary Fund (IMF) and the Asian
Development Bank (ADB) recently released their updated
forecasts for the global and Asian economies respectively.
In both releases, India is forecast to be the fastest growing
country in 2015 and 2016, surpassing China’s growth rate
for the first time in many years. Of course, the Chinese
economy is much larger, valued at over US$10 trillion
compared to India’s US$2 trillion economy, and therefore
a higher growth rate for India at this stage should be
expected. Chinese policy makers are consciously trying to
slow down their growth rate by re-balancing the economy
away from investment towards domestic consumption,
to deal with excess capacities across sectors. In India,
on the other hand, the effort is to spur investment in
critical sectors such as infrastructure.
The IMF World Economic Outlook for July highlighted the
slower growth in emerging and developing economies
mainly due to lower commodity prices and tighter
external financing conditions. Commodity exporters such
as Russia and Brazil are expected to see a decline in
output in 2015. Rebalancing efforts in China and the
consequent slowdown would also have an impact
across the Asian region. The recent volatility in the
Chinese stock market has highlighted the difficulties that
China may experience in transitioning to a new growth
model. For advanced economies, a gradual pick-up
in economic activity is expected, although US growth
disappointed in the first quarter, leading to a downward
economy analysis
revision in the forecasted growth rate for 2015.
The ADB report’s expectation of good performance from
India is based on the following indicators: a healthy
monsoon, revival in the number of new investment
projects announced, and improvements in indirect tax
collection. These factors point to a recovery that is being
supported by the removal of procedural bottlenecks
that had earlier hampered investment. However, the
report mentions a further delay in the passage of
critical legislation on Land Acquisition and the Goods
and Services Tax as a key risk.
The UNCTAD World Investment Report 2015 shows that
investment inflows into India increased substantially by
22% in 2014, when global FDI inflows fell by 16%. While
FDI inflows to developed countries dropped by 28%,
inflows to developing economies increased by 2%.The
data shows that developing Asia drove the increase,
while flows to Latin America declined, and those to
Africa remained flat. China became the largest FDI
recipient in 2014, while India ranked 9th
, with flows of
US$ 34 billion. India has been continuously improving
its rank: from 31 in 2005 to 15 in 2013, it is now among
the top ten.
The report indicates a large increase in investment
outflow from developing countries, with their share
in global FDI increasing to 35% in 2014 from 13% in
2007. Developing country multinationals have expanded
foreign operations through greenfield investments
as well as cross-border mergers and acquisitions.
Large Indian multinationals have also resumed their
international expansion, investing US$ 10 billion in
2014, reversing an earlier slide.
Global Outlook is Positive for India
This article was contributed by Bidisha Ganguly, Principal
Economist, CII. She can be reached at bidisha.ganguly@cii.in
Forecasts of GDP Growth (% yoy)
ADB 2014 2015 2016
Developing Asia 6.3 6.1 6.2
People's Republic of China 7.4 7.0 6.8
India 7.3 7.8 8.2
IMF 2014 2015 2016
World 3.4 3.3 3.8
Advanced Countries 1.8 2.1 2.4
Emerging and Developing
Countries
4.6 4.2 4.7
China 7.4 6.8 6.3
India 7.3 7.5 7.5
Source: World Economic Outlook, IMF, July 2015
Asian Development Outlook Supplement, ADB, July 2015
24. Communiqué August 2015 | 31
T
he CII ASCON Industry Survey for the April – June
FY16 quarter reveals a reversal from the earlier trend
of slowing growth, with indications of a recovery
taking shape in the economy, albeit a slow one.
“The recent trend of slow but continuous progress
in industrial growth is noteworthy. What is especially
significant is that there are fewer sectors anticipating
negative growth and there has been a perceptible positive
movement in percentage points recorded by many of
the sectors which were in
moderate and negative growth
category a year ago,” said Dr
Naushad Forbes, President
Designate, CII, Chairman,
CII Associations’ Council
(ASCON), and Director,
Forbes Marshall Pvt Ltd.
The latest Survey, which
tracks the growth of the
industrial sector through
r e s p o n s e s c o l l e c t e d
from sectoral industry associations, reveals a slight
improvement in growth trends in terms of production
over the corresponding quarter a year ago.
The CII ASCON Industry Survey is based on the
feedback collected from industry associations affiliated
to CII. These associations encompass a wide range of
sectors comprising small, medium and large enterprises.
In most of the cases, these account for approximately
CII ASCON Survey
Green Shoots of Recovery Visible
70% of the total industry output in the respective
sectors.
The Survey was conducted from mid-June till end of
July 2015 and tracks the estimated growth trends in
terms of Production, Sales and Exports for Q1 FY 16.
The responses have been segregated in four broad
categories: Excellent (growth in excess of 20%), High
(growth in the range of 10-20%), Moderate (growth in the
range of 0-10%) and Negative (growth less than 0%).
Of the 93 sectors surveyed,
the share of sectors that have
recorded excellent growth
of more than 20% in Q1
(April – June) FY16 quarter
has surged up to 16.1% as
against 7.1% recorded in the
same period a year ago.
While the share of sectors
witnessing a high growth rate
of 10 to 20% has reduced to
9.7 % in April-June FY16 from
14.3% during the corresponding period a year ago, the
share of sectors reporting moderate growth has declined
marginally to 51.7 % from 51.8% a year ago. At the same
time, the number of sectors recording negative growth
has fallen from 26.9% in the first quarter last year to
23.6 % in the first quarter this year.
On the issues and concerns impacting growth, margin
pressure from stiff competition, competition from
Comparison of Industry Performance (Q1 FY16 over Q1 FY15)
manufacturingsurvey
‘The recent trend of slow
but continuous progress in
industrial growth is noteworthy.
What is especially significant
is that there are fewer sectors
anticipating negative growth.’
Dr Naushad Forbes,
President Designate, CII, Chairman, CII ASCON,
and Director, Forbes Marshall Pvt Ltd
25. 32 | August 2015 Communiqué
imports, shortage of power, high regulatory burden,
lack of domestic and export demand, shortage of
skilled labour and talent, and high tax burden, have
been cited as the most important constraints by more
than 50% of the respondents.
Industrial relations, transport infrastructure bottlenecks,
cost and availability of finance have been quoted as
moderately important factors impeding growth.
The Survey respondents have expressed their optimism
about a further improvement in the near-term growth
outlook, helped by continued policy actions and
implementation, and enhanced business and consumer
confidence. However, a sustainable recovery would be
conditional on improvement in domestic demand and
investment revival. While monetary easing would be
beneficial, weak global demand, limited ability of the
corporate sector to support revival in capex on account
of overleveraged balance sheets, moderation in rural
demand along with stress due to impaired loans on
bank balance sheets, will have a bearing on any upside.
The respondents have stressed on the need for reviving
investments in the economy to boost demand.
The Survey has recommended an array of policy
measures to boost growth. Some such steps include
reduction in interest rates, speedy implementation of
infrastructural projects and addressing supply-side
constraints on a variety of fronts including infrastructure,
energy, agriculture and labour.
Progress on reforms such as the Goods and Services
(GST) Bill and the Land Acquisition, Rehabilitation and
Resettlement (LARR) (Amendment) Bill, 2015 will impart
greater certainty to investors on the policy front. Further,
a proactive role by the Government towards creation of
employment opportunities in the non-farm segment of
the rural sector through food processing, construction
etc, and enhancing of capital spending by the States,
given that they are now recipients of higher resources
from the Centre, would support the creation of demand.
Such a mix of policies, if implemented, would go a long
way to revive investor sentiment which in turn would
reignite growth in Industry and the economy.
“The Government should continue to undertake policy
reforms aimed at reviving investments, removing
bottlenecks, and unshackling entrepreneurial activity,
to further drive growth. This would entail continuing
with procedural simplification to facilitate the ease of
doing business, ensuring a transparent, predictable and
consistent tax system, and working on the pending reform
agenda, especially of land, labour and environment, to
help power the ‘Make in India initiative’. Government and
Industry need to work together to regain the earlier growth
momentum,” said Dr Forbes.
survey
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26. Communiqué August 2015 | 33
Smart Manufacturing:
A Revolution in the Making
This article was contributed by
Mr Jayant Davar, Co-Chairman,
CII Manufacturing Council, and
Co-Chairman & Managing Director,
Sandhar Technologies Ltd
Envisioning the need to start articulating the elements of the Indian
industrial 4.0 ecosystem, the CII Manufacturing Council is organizing
the first ‘Smart Manufacturing Summit’ on 30 October in New Delhi.
For more details on the Smart Manufacturing Summit please contact
aakash.deep@cii.in
A
bout 50 years ago, the Manufacturing sector’s
share of global GDP was roughly 50% more than
what it is today. Later, in talks about engines of
growth, Manufacturing became more of an afterthought,
as countries and economies shifted employment from
Manufacturing to Services and beyond. Yet, a major
transformation is under way, as ‘the fourth Industrial
Revolution’ is about to begin.
The concepts of Smart Manufacturing aren’t entirely new
to Industry (e.g., machine-to-machine), but certainly,
recent technology advances allow us to bring together
data capture, connectivity, remote control and, most
importantly, analytics, to deliver on the promise of
cyber-physical Manufacturing sooner than we may
anticipate.
In Germany, this impending revolution is known as Industry
4.0, with the Government shoveling close to €500 million
into developing the technology. In China, Japan, South
Korea and USA, big steps are being taken to create global
standards and systems that will make factories smarter.
The vision of Smart Manufacturing (or ‘Industry 4.0’) is
for ‘cyber-physical production systems’ in which sensor-
laden ‘Smart products’ tell machines how they should
be processed. Processes would govern themselves
in a decentralized, modular system. Smart embedded
devices will work together wirelessly, either directly or
via the Internet ‘Cloud’ – the Internet of Things (IoT) -
to once again revolutionize production.
By combining components of the cyber and physical
world, Industry is moving towards making Manufacturing
systems flexible and integrated, with an increased focus
on collaboration. New technology applications will give us
the ability to access and understand every measurable
parameter in our plants and their interactions.
A range of technological changes, including advanced
robotics, large-scale factory digitization, 3 D printing, etc
are going to shift the Manufacturing paradigm in times
to come. The digital factory is no longer a fantasy.
However, the focus should not just be on smarter and
efficient production, but also on developing the skills
and capacities to handle increasingly complex products
and individualized demand.
The ‘Make in India’ initiative aims to give global
recognition to the Indian economy and also place
India on the world map as a manufacturing hub. The
Government’s impetus on developing industrial corridors
and Smart Cities aims to ensure holistic development
of the nation. The corridors would further assist in
integrating, monitoring and developing a conducive
environment for industrial development, and will promote
advance practices in Manufacturing.
For the companies that embrace it, Smart Manufacturing
has the potential to trigger innovation and productivity,
enable and spur growth, facilitate greater worker and
product safety, and improve the environmental profile
of operations.
Social machines, thinking factories, global facilities,
smart products and virtual production shall advance
productivity by making us agile and responsive to
market needs. This intelligence also preempts and
mitigates safety risks – key, if world-class businesses
wish to make in India. The challenge, apart from the
expensive infrastructure improvements, is that Smart
factories will only become a reality when everyone works
together. If different factories create their own proprietary
systems, we, as a nation, will not succeed.
By driving efficiency throughout the Manufacturing
process, smart technology helps eliminate waste: better
scheduling prevents idle machines and manpower;
optimized runs shrink water and energy use; and
fewer human errors reduce wastage. Smart technology
improves the supply chain by enhancing communication
to facilitate planning, and helping manufacturers react
to events in real time.
Manufacturers who create comprehensive and realistic
implementation strategies and begin to act now can
stay decisively ahead of the competition, reaping the
benefits of the Smart Manufacturing future and paving
the way for sustained and profitable growth.
manufacturingby invitation
27. 34 | August 2015 Communiqué
A
s many as 57 participants from different
programmes of the Visionary Leaders for
Manufacturing (VLFM)/Champions for Societal
Manufacturing (CSM), Project, conducted jointly by CII
and the Japan International Cooperation Agency (JICA),
graduated in a common ceremony in Mumbai on 29
July. While participants from 26 companies graduated
from Batch 8 of the VLFM Senior Managers Programme,
representatives of 8 companies from Batch 5, and of
4 companies of Type 2 of the 1000 VSME Programme
graduated. On the occasion, 24 Module Demonstrators
Champions for Societal Manufacturing
7th
VLFM/CSM Learning Convention
were also recognized for their outstanding contribution
to the VLFM and 1000 Visionary SME Programme.
This year, eight Tier 1 companies (customers) joined
the Type 1/ Type 3 programme of the 1000 Visionary
SME programme with 19 of their Tier 2 companies
(suppliers). These include Gabriel India Ltd, Dewas;
Hero Motors Ltd, Ghaziabad; Kirloskar Brothers Ltd,
Dewas; Lucas TVS Ltd, Chennai; Munjal Showa Ltd,
Gurgaon; Nikko Auto Components Ltd, Faridabad;
Satyam Auto Components Ltd, Manesar; and Tractor
and Farm Equipment Ltd, Chennai. Further, four plants
Prof Shoji Shiba, Chief Advisor, CSM; Venu Srinivasan, Past President, CII, Chairman, VLFM Initiative, and Chairman, Sundaram-Clayton Ltd;
Amitabh Kant, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce & Industry; Furuhashi Takeyuki, Japanese
Expert, JICA; Chandrajit Banerjee, Director General, CII; Takema Sakamoto, Chief Representative, JICA, India; Dr Anup K Pujari, Secretary,
Ministry of Micro, Small & Medium Enterprises; Dr Sarita Nagpal, Principal Adviser, CII, and Jamshyd N Godrej, Past President, CII,
Founding Chairman, VLFM Initiative, and CMD, Godrej & Boyce Manufacturing Company Ltd,
at the 7th
VLFM Learning Convention, in Mumbai
Furuhashi Takeyuki; Chandrajit Banerjee; Amitabh Kant, Venu Srinivasan, and Prof Shoji Shiba, with the successful participants of the programme
manufacturing initiative
28. Communiqué August 2015 | 35
representing three companies, Gabriel India Ltd, Spicer
India Ltd, and Sandhar Automotives, participated in the
Type 2 1000 Visionary SME programme.
Mr Amitabh Kant, Secretary, Department of Industrial
Policy and Promotion (DIPP), Ministry of Commerce
& Industry, presented certificates to all the successful
candidates in the presence of Mr Venu Srinivasan,
Past President, CII, Chairman, VLFM Initiative, and
Chairman, Sundaram-Clayton Ltd; Prof Shoji Shiba,
Chief Advisor, CSM, Mr Furuhashi Takeyuki, Japanese
Expert, JICA, and Mr Chandrajit Banerjee, Director
General, CII.
Also present were Mr Yoshiaki Ito, Consul-General
of Japan in Mumbai; Mr Takema Sakamoto, Chief
Representative, JICA, India; Prof Saibal Chattopadhyay,
Director, Indian Institute of Management (IIM), Calcutta;
Prof Indranil Manna, Director, Indian Institute of
Technology (IIT), Kanpur, and Mr K Nandakumar,
Chairman, CII WR MSME Sub-committee, and CMD,
Chemtrols Industries Ltd.
Highlighting the importance of Manufacturing,
Mr Amitabh Kant said, “Jobs cannot be created in
Services as much as they can through Manufacturing.
Hence, there are huge perils of non-industrialization for a
population of the size of India, and there will be serious
consequences if Manufacturing is not initiated.”
Mr Amitabh Kant also released two new books. The
book, ‘Dr Surinder Kapur: Creating Bridges, Opening
New Worlds,’ is a remembrance tribute to the late
Dr Kapur, one of the founder members of the VLFM
initiative, capturing his contribution and association
with the programme. ‘Learning through Observations,’
highlights the observation skills required to see invisible
opportunities.
Selected success stories of VLFM and 1000 Visionary
SME were displayed at the ‘Success Stories Gallery
Walkthrough’ session in the event.
Prof Shoji Shiba said that the biggest obstacle for
future transformation is mindset change. "In the past
12 years, Indian Manufacturing has changed drastically.
In 2015, India is ready to take the challenge set by the
new administration,” he said.
In an earlier session, Dr Anup K Pujari, Secretary,
Ministry of Micro, Small & Medium Enterprises, said
that India is one of the few countries in the world that
publishes foreign exchange trade data within 10 days
of the ending of the month.
"The outcomes of the VLFM programme over the last
ten years have been impressive. Over 1800 CEOs,
SMEs, and senior and middle-level managers have
benefited from the programme. Over 500 people have
gone through the 5 modules of the senior managers’
course in 9 batches," said Mr Venu Srinivasan, in his
concluding remarks.
The key partners of the programme, the Government
of India, represented by DIPP and the Ministry of
MSME, the Government of Japan, represented by the
Embassy of Japan and JICA, academic partners IIM
Calcutta, IIT Madras and IIT Kanpur, and CII, joined
the VLFM Governing Body Meeting to discuss the
future agenda.
Key Partners of the programme from the Government of India, the Government of Japan, Academia and Industry,
at the VLFM Governing Body Meeting in Mumbai
manufacturing
Release of the book, ‘Dr Surinder Kapur: Creating Bridges, Opening
New Worlds,’ a remembrance tribute to the late Dr Kapur, one of
the founder members of the VLFM initiative
29. Communiqué August 2015 | 37
CII, in partnership with the Indian Navy,
organized a seminar on ‘Innovation
and Indigenization: Sailing towards Self-
Reliance’ on 16-17 July in New Delhi.
The importance of self-reliance in the defence
forces cannot be over-emphasized. The Indian
Navy has been at the vanguard in promoting
the indigenous design and construction of
warships and equipment for many decades.
The indigenous development and induction
of technologically superior
equipment and systems can
only be achieved through
innovation leading to
indigenization and finally self-
reliance in the country, taking
forward the Government’s ‘Make in
India’ thrust and achieving the Indian
Navy’s goal of self-reliance.
The seminar provided an opportunity
CII-Indian Navy Seminar on
Innovation and Indigenization
Global Defence Supply Chains
to Indian Navy and Industry representatives to collectively
discuss the end requirements and plans of the Indian
Navy while pursuing innovative methods and out of
the box concepts towards self-reliance in the defence
sector.
CII, in partnership with Aerospace
Ventures, organized a seminar on
Global Defence Supply Chains on
8 -9 July in New Delhi, to highlight
the various opportunities and discuss
the challenges for Indian companies
to be a part of the Global
Supply Chain.
The Government of India has identified
Defence as one of the most important
sectors for boosting industrial
Manufacturing and has taken policy
Anil Ambani,
Chairman,
Reliance Group,
addressing the
CII-Indian Navy
Seminar
Sujith Haridas, Deputy Director General, CII; Manohar Parrikar, Minister of
Defence; Admiral RK Dhowan, PVSM, AVSM, YSM, Chief of Naval Staff; and
Vice Admiral AV Subhedar, AVSM, VSM, Chief of Material, Indian Navy, at
the CII-Indian Navy Seminar in New Delhi
measures, such as increasing Foreign
Direct Investment in the Defence
sector and on-going revision of the
Defence Procurement Procedure
(DPP), to boost this sector.
The Make in India initiative has
provided the much-needed impetus
to Original Equipment Manufacturers
(OEMs), to encourage large and small
Indian companies to take advantage
of the opportunities being generated
in this sector.
Dr Athanasios Potsis, Director, Offsets &
Industrial Cooperation, Aerospace Ventures;
and Dr RK Tyagi, Chairman, CII Taskforce
on PSU Contract Conditions, and Former
Chairman, HAL, at the seminar on Global
Defence Supply Chains in New Delhi
CII Recommendations on Telecom
Mr Kiran Karnik, Chairman, CII National Committee on Telecom and Broadband, submitted the CII recommendations
on the proposed decentralization of the revenue assessment and reporting requirements imposed upon TSPs by
the Department of Telecommunications (DoT) to Mr Rakesh Garg, Chairman, Telecom Commission and Secretary,
DoT, Ministry of Communications and Information Technology.
CII has recommended centralization to expedite the process of revenue assessment of revenue and pass through
charges and process, as well as to reduce incidences of disputes.
sectoral synergies
30. 38 | August 2015 Communiqué
sectoral synergy infrastructure
T
he Government
i s s e t t o
announce a new
aviation policy shortly
to boost growth and
ease business in the
sector, announced
Mr Ashok Gajapathi
Raju Pusapati, Minister
for Civil Aviation, at
the ‘Aviation Day’
conference on 14
July in New Delhi.
The conference was
organized by CII in
partnership with the
Ministry of Civil Aviation
and the International Air Transport Association (IATA).
Mr Raju said that while all measures would be taken
to ease the investment climate, there is an equal need
for rules and regulations. “There is a need for rules,
but rules and regulations will not be kept just for the
sake of rules,” he said. Rules will have to be amended
for the growth of the sector. Different countries have
experimented with different regulations as each country
is unique in its market structure and design. India, which
is known to be a complex market, will have to borrow
ideas from different markets and will have to modify
these ideas as per requirement to ensure growth of
the aviation industry, he said.
The Minister emphasized that Industry, the Government
of India and the State Governments have to work
together to drive India’s emergence as the 3rd
largest
global aviation market. The Government, he said,
is committed in its resolve to ensure ease of doing
business and is moving in that direction.
The new aviation policy that is
expected to be taken up by the Union
Cabinet shortly, would look at three
major pillars–reducing the cost of
acquisition of aircrafts, developing
airports, and working with the States to
moderate taxes on Aviation Transport
Fuel (ATF) at the State-level, said Mr
R N Choubey, Secretary, Ministry of
Civil Aviation. “We are working to see that all the States
can bring down the VAT rates to 4% on ATF. This is
crucial as India has to
import crude oil, and
moderate fuel prices
are a key component
to making this industry
competitive,” he said.
Mr Tony Tyler, Director
General and CEO,
IATA, complimented
the Prime Minister
and his Cabinet for
focusing on the ease
of doing business in
the country. The Indian
aviation market is
estimated to be valued
at US$ 282 million by
2031 and will exceed a market value of US$ 360 billion
post FY34, he said.
While the aviation sector in the country will continue
to grow, it is important that the Government improves
business sentiment in the sector. The roadmap to the
success of this sector lies in simplifying the multiple
layers of taxation and the fuel pricing regime, and in
making the regulator independent, he said. Speaking
of challenges, Mr Tyler said players in the Indian
aviation sector are reeling under huge losses even
when the profitability of the global aviation industry
exceeds its cost of capital. While the Government
continues to address some of the issues, it is
important that India adopts some of the global best
practices to further the growth of its aviation industry,
he said.
Mr Sanjay Reddy, Chairman, CII National Committee
on Infrastructure, and Vice Chairman, GVK Power and
Infrastructure, in his introductory remarks, highlighted
the need for a healthy aviation industry. The aviation
sector in India needs to be made a profitable
business venture, as a huge amount of capital is
required to support its future growth, he pointed out.
Currently, the Indian aviation industry is growing at
an average growth rate of 13-15%. Success lies in a
collaborative approach, he said, suggesting that the
Ministry of Civil Aviation could form a committee of all
stakeholders, including airlines and airports, to work
together and make India the third largest aviation
market in the world.
‘New Aviation Policy Soon’
R N Choubey,
Secretary,
Ministry of
Civil Aviation
Ankur Bhatia, Executive Director, Bird Group; Tony Tyler, Director General
and CEO, International Air Transport Association (IATA);
Ashok Gajapathi Raju Pusapati, Minister of Civil Aviation, and
G V Sanjay Reddy, Chairman, CII National Committee on Infrastructure,
and Vice Chairman, GVK Power & Infrastructure Ltd,
at the ‘Aviation Day’ conference in New Delhi
31. Communiqué August 2015 | 39
CII-Jubilant Bhartia Food and
Agriculture Centre of Excellence
Surakshit Khadya AbhiyanTM
A Nationwide Campaign for Safe Food for All
T
he CII-Jubilant Bhartia
Food & Agriculture Centre
of Excellence (CII FACE)
has partnered with the National
Association of Street Vendors
of India (NASVI), the Voluntary
Organization in the Interest of
Consumer Education (VOICE),
and Cargill India, as its National
Industry Partner, to usher in the
Surakshit Khadya Abhiyan,TM
a focussed pan-India Food
Safety Awareness Campaign
to strengthen nationwide action
on Safe Food for All.
Aligned to the ‘Jago Grahak
Jago’ movement for promoting
consumer welfare, and the
country-wide ‘Swachh Bharat
Abhiyan’ mission for ensuring clean surroundings and
clean environment, the nationwide campaign aims at
strengthening capacity on Food Safety management
across all stakeholders towards preventing food-borne
illness.
At the launch ceremony of the Abhiyan in New Delhi,
on 21 July, Mr Ram Vilas Paswan, Minister of Consumer
Affairs, Food, and Public Distribution, launched the
website for Surakshit Khadya AbhiyanTM
and unveiled
the Surakshit Khadya AbhiyanTM
logo and 'Pledge
Scroll' which displayed the pledge on 'Safe Food for
All' endorsed by partners.
The Minister complimented CII, VOICE, Cargill and
NASVI for launching the Surakshit Khadya AbhiyanTM
as a grass root movement to benefit the common man
and the entire nation. He called for additional focus on
raising awareness among street food vendors to make
basic practices of hygiene, sanitation and safety integral
to the street food of India, which is widely enjoyed by
consumers.
The launch was also attended by Mr C Viswanath,
Secretary, Ministry of Consumer Affairs, as well as
Government officials, food professionals representatives
from Industry, and members of the media.
With heightened consumer demand for safe food and
new product innovations from the industry, the Surakshit
Bharat AbhiyanTM
is a big step forward for the Indian
Food Sector towards global standards of Food Safety
and Quality.
The manifold initiatives of the Abhiyan towards sensitizing
consumers, street food operators and Industry on their
roles, rights, the importance of hygienic practices, and
systems for food safety risk mitigation involve:
• Enhancing consumer awareness on reading labels,
nutrition tables, storage conditions and others on
food packaging
• Disseminating hygienic practices through activities
like I Pledge, poster and painting competitions,
street plays, quiz competitions, hygiene
demonstrations and training for street food vendors,
schools and colleges
• Strengthening awareness of consumers and Food
Chandrajit Banerjee, Director General, CII; Ram Vilas Paswan, Minister of Consumer Affairs,
Food, and Public Distribution; Siraj Chaudhary, Chairman, Cargill India, and C Viswanath, Secretary,
Ministry of Consumer Affairs, Food, and Public Distribution, at the launch of the
Surakshit Khadya AbhiyanTM
in New Delhi
towards excellencefood & agriculture
32. 40 | August 2015 Communiqué
and Beverage Operators (FBOs) such as
retail, railways, food storage locations,
midday meal service providers, street food
vendors, and mass caterers on how to
produce, serve and consume safe food
• Building capacity among Industry and
stakeholders on Food Safety benchmarks
with best practices-sharing summits,
workshops, training programmes, short-
term professional courses and food
safety award programmes, with partners
of international repute.
As part of this endeavor to enhance the
involvement of people from all walks of life,
including general consumers, schools, colleges
and street food operators, Safe Food Walkathons
and interactive sessions are being planned
across Metros and 2 tier cities like Bangalore,
Delhi, Mumbai, Kolkata, Lucknow, Jamshedpur,
Ahmedabad, Mohali, Pune, Siliguri, Haryana,
Jaipur, Chennai, and many more.
Mass dissemination to promote Food Safety
practices to the general population would also
be organized by strategically leveraging print,
electronic, social and digital media.
The first Safe Food Walkathon was held in
Bangalore on 2 August, with several parallel
activities comprising I Pledge, Nukkad Natak,
puppet shows, painting competitions, street
food awareness training and many other food
safety advocacy programmes.
VOI C ES
‘Access to safe food is a basic human right. We are glad to
join hands, as National Industry Partner, with CII, and be a
catalyst to improve food safety awareness in the country as
well as drive the agenda of ‘safe food is everyone’s right’
through the Surakshit Khadya Abhiyan.’
Siraj Chaudhry, Chairman, Cargill India
‘Healthy consumers can make a healthy nation. To meet this
need of the hour, Consumer VOICE has joined the Surakshit
Khadya Abhiyan and will make consumers aware of the
importance of Food Safety and Quality as their basic right.
Food Business Operators across all sales counters have to
abide by hygiene and safety norms for the health of the
consumers.’
Ashim Sanyal, COO, VOICE
‘Municipal authorities must understand that security at the
workplace will lead to food vendors focusing on hygiene and
safe food, and food vendors must appreciate that hygiene
and safe food will enhance their business.’
Arbind Singh, National Coordinator, NASVI
‘The pan-India food safety awareness and capacity-building
campaign, the Surakshit Khadya Abhiyan, will surely go a
long way towards strengthening Industry’s engagement in
enhancing Food Safety implementation in the country. I look
forward to the Abhiyan becoming instrumental in triggering
the continual and breakthrough improvements required to
achieve Food Safety excellence in the years to come.’
Chandrajit Banerjee, Director General, CIIFor more details please contact Anju Bist at
anju.bist@cii.in, or visit www.cii-ska.in
Meetu Kapur, Executive Director, Food and Agriculture Centre of Excellence, CII; Mayank Jalan, Co Chairman, CII National Committee on
Food Processing, and CMD, Keventer Agro Industries Ltd; Siraj Chaudhary; Ram Vilas Paswan; C Viswanath; Chandrajit Banerjee;
Ashim Sanyal, COO, Voluntary Organisation in Interest of Consumer Education, and Arbind Singh, National Coordinator, National Association
of Street Vendors of India, at the launch of the Surakshit Khadya AbhiyanTM
food & agriculture