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ªÉÄʸÀægàä ªátâdå MYSORE NovemberªÉÄʸÀÆgÀÄ - 2014 COMMERCE ªÁtÂdåEstd. 1916 FKCCI JOURNAL Estd. 1916 NOVEMBER 2014 Volume XXXV November 2014 Issue 11 Rs. 20 Business magazine from Federation of Karnataka Chambers of Commerce & Industry, Bangalore Karnataka New Industrial Policy targets Rs 5 lakh crore investment FKCCI Office Bearers interact with Mr. Siddaramaiah, Hon’ble Chief Minister of Karnataka on issues relating to industrial policy, attracting investments to Karnataka at his Residence 1 November - 2014 Estd. 1916 2 November - 2014 Volume XXXV November 2014 Issue 11 Business magazine from Federation of Karnataka Chambers of Commerce & Industry, Bangalore Estd. 1916 Federation of Karnataka Chambers In this issue of Commerce & Industry President’s Desk 4 Federation House, K.G. Road Bangalore - 560 009. Karnataka Phone : 080 - 22262355 / 6, 22262157 Editor’s Desk 5 Fax : 080 - 22251826 E-mail : [email protected] Spotlight 6 Website : www.fkcci.org Editorial Board FKCCI’s China Visit Yields US$ 1 Billion+Investment 7 President S. Sampathraman The way forward - rebooting Economy 10 Senior Vice President Tallam R Dwarakanath Karnataka industrial policy targets Rs 5 lakh crore investment 11 Vice President M.C. Dinesh A Holistic Industrial Policy-Aimed at Moving Imm. Past President From Red Tape to Red Carpet: FKCCI 12 R. Shivakumar Secretary General Karnataka Government to spend Rs.700 Sudarshan Tirunarayan crore to fix roads in Bangalore’s IT Pockets 14 Secretary The next round of economic reforms 22 M. Lokaraj Features Financial inclusion is an evolution 27 Industrial Policy 13 New Monetary Policy 26 Registration of Properties 15 Economic Growth 26 Labour Law 15 SMEs as different verticals 29 Make in India has caught the imagination Aerospace Industry 16 Coal Sector 29 of India and foreign investors 28 Import duty for Rubber 20 Embrace China, not USA 30 Tumkur Food Park 20 Internet Revolution 31 Rural BPOs 21 Health 32 £ÀÆvÀ£À ¸ÀPÁðgÀ¢AzÀ zÉñÀªÁ¹UÀ¼À ¤jÃPÉëUÀ¼ÀÄ 34 Reviews New Indt. Policy 21 Achiever 33 Indian oil refiners 23 Photo Feature 36 FKCCI @ Work 42 Make in India 24 Intellectual Property 46 Smart Cities 25 Transfer Pricing 47 Powered by: Printed at: at [email protected] latest by 20th the Articles are of the Authors and not Corporate Comm India Omkar Offset Printers of every month. Kindly note that only of the organizations they represent. 3A, Casamiller, 96, Nandidurga No.3/3, 1st Main Road Road, Benson Town, Bangalore New Tharagupet, Bangalore - soft copies will be accepted. Any Every possible care has been taken to - 560 046. Karnataka 560 002. Karnataka article received after this date will ensure the accuracy of information, Web: www.corpcomm.in Web: www.omkaroffset.com not be considered for publication. however, FKCCI, its team and service E-mail: [email protected] E-mail: [email protected] Ph: 080-41156483 / 9591100992 Ph: 080 - 26709026 / 26708186 All photographs, unless otherwise providers do not take responsibility for indicated, are used for illustrative any commission of errors. We welcome Articles in English and Kannada, not exceeding purposes only. such errors to be brought to our notice 2000 words may be mailed to President, FKCCI, Please note that the views expressed in for correcting the records. 3 November - 2014 President’s Desk Estd. 1916 Narendra Modi dividend may push up growth, economy set to grow by 6.4% in 2015-16 – World Bank S. Sampathraman President Dear Members, A ‘Modi dividend’ could lift India’s economic growth to 6.4% in 2015-16, the World Bank has said, referring to a possible boost to the animal spirits of entrepreneurs due to the coming to power in May 2014 of a government perceived to be more market-friendly than the previous one. The Indian economy, 80% of the (South Asia) region’s output, is set to grow by 6.4% in 2015-16 after 5.6% in 2014-15. India is benefiting from a ‘Modi dividend’, noted the World Bank’s bi-annual report, South Asia Economic Focus. Apart from the rather unusual personalisation of the sources of India’s economic growth, the report is otherwise along conventional lines. China’s Growth Will Slow to 7.2% Karnataka has launched the new The World Bank calls for structural reforms and prudent macroeconomic management Industrial Policy 2014-2019 for a better medium-term outcome. “The Modi effect is definitely playing out as far as and the policy looks vibrant with capital inflows are concerned. Inflation needs to trend downwards, but the external and fiscal positions look very promising,” growth initiative in terms of jobs The current year’s growth could turn out to be higher than the 5.6% estimated by skill development and incentives the World Bank. As far as India’s giant neighbour is concerned, the World Bank has and simplification of approvals. estimated that China’s growth will slow to 7.2% next year, a cut from the 7.5% estimated in April this year. The bank also does not see any threat for India because of the likely The policy is aimed towards withdrawal of US monetary stimulus over the rest of 2014 and 2015, as the economy the inclusive development is now stronger in terms of its ability to manage current account. India’s economic growth will accelerate to touch the 7% mark in 2016-17, according and growth of Industries in the to the report, which took note of recent policy measures undertaken. These include State of Karnataka encouraging liberalisation of foreign direct investment in railways and defence, disbanding of the women entrepreneurs in setting Planning Commission and its replacement by an economic advisory body, financial inclusion as well as actions to simplify land acquisition and reform labour laws. up the industries in exclusive India’s economy turned around sharply in the first quarter of 2014-15 to grow at 5.8%, industrial areas. The creation of bucking the dismal sub-5% growth of the last two years. “India’s growth performance quality infrastructure focusing remains strong vis-a-vis emerging market peers,” the World Bank said. Private investment is expected to pick up thanks to the new government’s business orientation on provision for comprehensive and declining oil prices should boost private sector competitiveness, it added. The facilities and with a thrust on ‘Modi Dividend’ is coming out from the positive sentiment, as reflected in the stock Human Resource and Skill market. All economic indicators look positive, aided by the base effect and actual recovery in Development and upgradation some areas. But there is a lot of resolution shown by the government in areas like fiscal is a positive step in growth deficit and current account deficit. We expect economy to see an all round recovery verticals and expected to soon. Progressive thinking with a positive attitude to support the trade and industry is the enhance the industrial growth need of the hour and the blocks are being laid now for larger vision share for the state and also in attracting fresh to occupy the top slot in the country. investments for the state. S. Sampathraman 4 Editor’s Desk November - 2014 Estd. 1916 The turning point in the state M C Dinesh Vice President Dear Members, The launch of the new industrial policy 2014-2019 is expected to propel the required momentum for the state to grow faster towards industrialization leaping into the next phase is put into place in the right time. The government both at the centre and the state are stable and is expected to be very growth oriented helping the industry and trade to glitter in terms of growth and social distribution of wealth. Karnataka’s new industrial policy will set the new trend to accelerate the growth to 20% every year leading to creation of nearly 15 lakhs jobs in the state. The clarity and the path are The entrepreneur temperament with complimentary and supplementary efforts of the visible and is expected to have state government, I have no hesitation to believe that with the new industrial policy, the wide reach in short span. the Karnataka will attract an investment 5 lakh crores. What is more satisfying to see The direction and the delivery that the state government is also gearing itself for making infrastructure as one of the top most priorities in its agenda so as to create an environment for the growth and approach is showcased by these development of the industries. in redefining the objectives pushing beyond the stagnated For the first time I have seen a sense of a satisfaction from all the stake holder on the industry policy just laid by the state government more so from the small and medium boundaries. enterprises. The industry and trade expectations are high and the The clarity and the path are visible and is expected to have the wide reach in short span. The direction and the delivery approach is showcased by these in redefining the new strategic capabilities is objectives pushing beyond the stagnated boundaries. expected to mark the beginning for such an evolution. The The industry and trade expectations are high and the new strategic capabilities is expected to mark the beginning for such an evolution. The commitment and the commitment and the passion is passion is the business agenda for the next five years making the impossible possible. the business agenda for the next The support is sought from the governments for these in this entrepreneurial journey. five years making the impossible This news letter has undergone some changes to make it more informative in all the possible. The support is sought fronts with articles covering on economy trade industry banking and hope you enjoy from the governments for these reading all these articles.
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