World Economic Forum on India from Deliberation to Transformation

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World Economic Forum on India from Deliberation to Transformation Regional Agenda World Economic Forum on India From Deliberation to Transformation National Capital Region, Gurgaon, India 6-8 November 2012 © World Economic Forum 2012 - All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. The views expressed are those of certain participants in the discussion and do not necessarily reflect the views of all participants or of the World Economic Forum. REF 111112 Contents Preface 3 Preface After nearly three decades of close partnership with leaders from government, industry and civil society in India, we take 4 News from Gurgaon great pride in the multistakeholder community we have 6 Governance and Policy Hold built with the tremendous support of our Indian Member the Key to Risk Resilience companies and partners such as the Confederation of 12 Investing in India’s Future Indian Industry (CII). Today, our engagement in India not only holds our second largest base of Member companies 18 From Potholed Side Road Back worldwide, but also the second largest number of Young onto the Golden Turnpike Global Leaders and Social Entrepreneurs, reflecting our 25 Acknowledgements identity as a neutral platform for leaders from all walks of life. Sushant Palakurthi 30 Further Information In recognition of India’s emergence as one of the most Rao Senior Director important G20 economies and to underscore the Forum’s Head of Asia, World continued commitment as a trusted partner to India, we Economic Forum are looking forward to establishing a physical presence of the Forum in India within the coming year. This will be the Forum’s fourth office outside of Geneva, alongside locations in Beijing, New York and Tokyo. For the first time in its 27 years, our annual summit in India convened as the World Economic Forum on India, in line with the Forum’s regional activities elsewhere in the world. Under the theme “From Deliberation to Transformation”, the meeting provided an opportunity for over 650 participants to outline a blueprint for a post-crisis India and create a new model of practical and effective governance to rebuild trust, not only in India, but also in the wider South Asian region. The Co-Chairs of the World Economic Forum on India reflect the diversity of leadership from sectors and regions around the world and highlight the importance of continual dialogue across stakeholder groups. This year’s programme focused on improving risk resilience and shaping India’s Co-Chairs future growth alongside the parallel imperative of developing the region’s human capital – particularly the importance Paul Bulcke Chief Executive Officer of prioritizing girls and women, who represent half of the Nestlé human capital. Switzerland The openness of discussions and straight talk during the Kris Gopalakrishnan meeting on such issues as gender disparity, corruption Executive Co-Chairman Infosys and confronting the need for inclusive governance made India clear that Indians are prepared to move from deliberation to action. They are ready and open to transforming their Siddhartha Lal problems into opportunities, while deepening India’s Managing Director and Chief Executive Officer dynamic democracy. Eicher Motors India The World Economic Forum is grateful to its Members and Chhavi Rajawat communities for their commitment and participation in the Sarpanch of Soda 2012 World Economic Forum on India, and we look forward Village Council of Soda to welcoming you to next year’s gathering. India Jasmine Whitbread Chief Executive Officer Save the Children International United Kingdom From Deliberation to Transformation 3 News from Gurgaon This meeting’s Sub-themes: Redressing Risk Developing Human Capital – Prioritizing Girls and Women Fulfilling the Future Promise of India Social Entrepreneur of the Year India 2012 The Schwab Foundation for Social Entrepreneurship and the Jubilant Bhartia Foundation has honoured Anshu Gupta, Founder and Director of Goonj, as the 2012 Social Entrepreneur of the Year for India. Goonj channels excess resources in urban households to impoverished rural and disaster-prone areas. Materials include clothes, furniture and electronic equipment. The company collects and delivers 1,000 tons of material every year across 21 states of India. Goonj also supports village and slum communities in infrastructure/local development projects. The award was conferred in New Delhi in the presence of Sheila Dikshit, Chief Minister of the National Capital Territory of Delhi. For more information, visit the website at www.schwabfound.org or follow the Foundation on Twitter at www.twitter.com/schwabfound.org. 4 World Economic Forum on India News from Gurgaon Building a Engaging Shaping India Culture of Tomorrow’s Accountability Consumer in India India is known for its high level of In 2011, more than 17 million households The Global Shapers Community business sophistication and innovation. comprised the middle class in India. is a network of city-based Hubs Yet, its performance on transparency The country’s population is projected to developed and led by leaders between and corruption indices leaves substantial have a median age of 31.5 in 2030, and 20 and 30 years old who want to room for improvement, with India ranking India is expected to be an urban majority develop their leadership potential 95th on the Corruption Perception Index. country by the late 2030s. With a in serving society. Members of the Establishing a strong sense of credibility growing, young and urban middle class, Hubs undertake grassroots projects in government and the development of consumption in India must meet today’s to improve their communities. Global adequate capacity for enforcement must needs without compromising those of Shapers are selected on the basis be06 addressed to ensure the success future generations. However, research of their achievements, leadership of India’s efforts against corruption. A shows that there is a clear gap between potential and commitment to making a new report, Transparency for Inclusive consumers’ intentions and actions when difference. Each Hub connects with other Governance: An Assessment of India, it comes to sustainability. The Forum’s Hubs worldwide and to other Forum was launched in a joint session between Engaging Tomorrow’s Consumer initiative communities; there are currently six Hubs the Global Agenda Council on India seeks to understand how to transform in India. More than 25 Global Shapers and the Forum’s Partnering Against demand to enable sustainable lifestyles. took part in the World Economic Forum Corruption Initiative (PACI). The report In Gurgaon, the initiative drew insights on India to represent the voice of youth, was produced by PACI in cooperation from cross-industry and multidisciplinary as well as in a mini-summit for Global with PwC. More information about PACI: participants on how to engage Indian Shapers in India to discuss opportunities www.weforum.org/issues/partnering- consumers to trigger simple behavioural and challenges in the region. For more against-corruption-initiative. shifts that enable more sustainable information, visit www.globalshapers.org lifestyles and create business value. For or forumblog.org/communities/global- more information on the initiative, visit shapers/. www.weforum.org/issues/sustainable- consumption. 04 From Deliberation to Transformation 5 Redressing Risk Governance and Policy Hold the Key to Risk Resilience Is India heading into the middle-income trap? This question is being asked as economic growth slows and an array of global and domestic risks continues to threaten the economy. The answer will lie in the extent to which India is able to develop resilience to these risks. Improving governance and policy- making, and encouraging innovation, are the most significant steps in this Bandwidth has huge direction. potential to take information to the last mile… It can be a platform for rural India to be heard. Chhavi Rajawat Sarpanch of Soda, Village Council of Soda, India; Co-Chair of the World Economic Forum on India 6 World Economic Forum on India Redressing Risk As an emerging economy with keep interest rates high, which in turn significant numbers of disadvantaged affects the ability of businesses to invest people acutely vulnerable to domestic and of consumers to spend. and global risks, India needs to guard against the erosion of confidence that At the same time, as India grows, lack risk can engender, both at home and of environmental sustainability and among investors around the world. The inclusiveness are creating the risk of human cost of these risks is remarkably social, political and economic upheaval. large in India’s case, which lends greater Entire regions and social groups like the urgency to efforts aimed at improving Dalits, women, tribals and Muslims have resilience against them. been left behind even as the economy gallops ahead. Inequality perpetuates One of the biggest risks to India’s poverty through corruption, lack of socio-economic progress stems from opportunity and lack of access to good its persistent neglect of infrastructure, governance. The result is already visible a key enabler of economic progress, in in the armed Maoist conflict raging in a range of sectors including transport one-third of India’s 600 districts, and energy. Despite overall consensus that India must encourage investment Meanwhile, India is witnessing A Safety Roadmap in infrastructure, it has yet to actually urbanization at a scale and speed not deliver by offering sufficient incentives to seen in history, with the potential to rip The annual death toll due to road investors who, after all, have finite capital apart its social, political and economic accidents in India is among the and seek the most conducive conditions fabric. And with urbanization come its highest in the world. Accidents have attendant risks, such as those tied to globally. a deep social impact as well as a high health, water provision and transport economic cost. An effective strategy Climate change, water and food safety.
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