Energy Security and Equity Must Go Hand in Hand

BUSINESS DIGEST Vol No 10 Issue No 6 September 2013

Energy security and equity must go hand in hand

Seamless PPP imperative to tackle non-communicable diseases: Syeda S. Hameed

Special Features nEnergy Chairman-Editorial Board Need to provide energy to all at affordable prices; open markets with Dr. A Didar Singh 19 safety nets for vulnerable sections vital Member-Editorial Board & FICCI signs 2 MoUs for adopting trigeneration and energy efficiency Head-Communications technologies Vinita Sethi nHealth Editor Healthcare providers to be graded in terms of patient-safety and quality Sukumar Sah 06 of delivery Moving towards sustainable quality healthcare Assistant Editor Sushmita Yadav

Marketing Animesh Goswami 4 From the Secretary General's Desk… Advertising & Circulation 14 India and Iraq: Time for new synergies PL Joseph Veena Srivastava 17 FICCI delegation explores prospects of cooperation in SMEs and greater Rahul Siwach flow of capital from Japan Dinesh Bhandari" Anjana Rajwar 26 CSR, a winning proposition 28 Health Ministry focusing on capacity building to combat child Design & Art malnutrition Visualeyes Communications Pvt. Ltd 29 Liberian President invites Indian business to invest in country's Printed by reconstruction Diamond Art Printers [email protected] 30 Sachin Pilot offers to take up industry's demand for tax relief on CSR spends with Finance Ministry c All Rights are reserved. 32 Belgium, your gateway to Europe No part of this publication may be reproduced, stored in a retrieval system, 35 Kamal Nath suggest test drive of tramways in a medium-sized Indian city or transmitted in any form or by any to gauge its efficacy means, Electronic, Mechanical, 36 BRICS gets down to business amidst lingering global slowdown Photocopying, Recording and/or otherwise without the prior written 38 Hungary, an investment destination few can afford to ignore permission of the Publisher. 40 Uttarakhand Task Force Statement about Ownership and other Particulars about the Journal (FICCI 41 Indian publishing industry reaching out to African and South Asian Business Digest) required to be published nations under Rule 8 of the Registrar Central Rules, 1956. 42 Maharashtra's mega project policy sees investment flowing in: CM Printed and Published by Secretary 44 In the States General on behalf of (or owned by) 48 Macroeconomic Indicators Federation of Indian Chambers of Commerce and Industry, New Delhi and Published at Federation House Tansen Marg, New Delhi - 110001 R.N.I No. DELENG/2004/13722 Federation of Indian Chambers of Commerce and Industry, We look forward to your feedback Federation House, Tansen Marg, New Delhi – 110001 We would like your feedback/comments to enable us to improve Phone: 23738760-70(11 Lines) our offering. Write to us at: [email protected] or Fax: 23320714, 23721504 [email protected] E-Mail: [email protected] Website: www.ficci.com Special Features nEnergy Chairman-Editorial Board Need to provide energy to all at affordable prices; open markets with Dr. A Didar Singh 19 safety nets for vulnerable sections vital Member-Editorial Board & FICCI signs 2 MoUs for adopting trigeneration and energy efficiency Head-Communications technologies Vinita Sethi nHealth Editor Healthcare providers to be graded in terms of patient-safety and quality Sukumar Sah 06 of delivery Moving towards sustainable quality healthcare Assistant Editor Sushmita Yadav

here is little doubt that energy security forms the backbone of a nation’s economic strength. For an emerging Teconomy, such as India, this holds truer than ever. To fuel a faster growth in the manufacturing sector, a growing vehicular population and an ever-increasing demand for power across all sectors, assured and economically viable energy supplies are imperative. But we must not lose sight of energy equity. As succinctly articulated by Salman Khurshid, Union Minister for External Affairs, “Energy security must come with the broader idea of energy equity. There is no security without equity. Supply of energy is the basis of security, but supply of energy is meaningless if the consumption of that energy is not efficient and not in an equitable balance.” We bring you perspectives on this important topic that was discussed at the FICCI-MEA National Conference on Energy Security in New Delhi in early September. Another FICCI’s flagship event, the annual Health Conference on the theme ‘Sustainable Quality Healthcare’ took a comprehensive view of the challenges faced by the healthcare sector. Each element and the corresponding cost implications in the delivery of quality healthcare both in the public and private healthcare sector came in for close scrutiny. The following pages give a snapshot of the deliberations and the key messages that emerged out of the discussions. India’s political and economic relations with Iraq have been historically strong and deep-rooted. There are now strong reasons for India and Iraq to further deepen bilateral relations. Indian companies are more than keen to work and expand their footprints in various fields, particularly in infrastructure projects, an area of critical importance to Iraq’s ongoing reconstruction efforts. Iraq, on its part, is keen to see India’s involvement as conveyed by Prime Minister Kamil al-Maliki during his visit to this country in August-end. The new environment in Iraq is one that is conducive for doing business by the public and private sectors. New laws have been designed to protect such an environment and there is assurance to Indian businessmen and companies of support, protection and guarantees. Indo-Japanese relations have always been marked by friendship and cordiality. Business ties too have grown significantly over the years. In a bid to boost business relations, particularly amongst SMEs, FICCI mounted the largest-ever delegation to Japan, comprising 70 companies and over 100 participants from diversified sectors, represented by the captains of industry, business heads, senior state government officials and top consultants. Structured and focused B2B meetings were held by the two sides. The initiative was timed suitably to serve as a build-up to the momentum generated in the ties between India and Japan in the last few years through a series of high-level visits and growing engagement transforming India-Japan relations into a strategic and global partnership. We bring you a detailed report on the visit. FICCI is committed to deepen its engagement with the world and make concerted efforts to impact policy change within the country. We welcome your views and feedback.

A Didar Singh

4 n FICCI Business Digest n September 2013 From the Secretary General’s Desk…

A Didar Singh

4 n FICCI Business Digest n September 2013 Healthcare providers to be graded in terms of patient-safety and quality of delivery

Dr. Syeda Hameed, Member, Planning Commission, Government of India releasing the Sangita Reddy, Chairperson, FICCI FICCI-EY working paper, 'Universal Health Cover for India: Evolving a Framework for Health Services Committee, Healthcare Reimbursement Methodologies'. On the dais (L to R): Shobha Mishra Ghosh, emphasised that the time was ripe Senior Director, FICCI; Rajen Padukone, Co-chairman, FICCI Health Services Committee; Murali Nair, Partner, EY Ltd.; Sangita Reddy, Chairperson, FICCI Health Services for the country to move towards Committee; Dr. A Didar Singh, Secretary General , FICCI; Dr. Nata Menabde, Who ensuring health security, in lines Representative to India; Dr. GSK Velu, Co-chairman, FICCI Health Services Committee similar to food security. She said and Dr. Sanjeev Chaudhry, Chairman & MD, SRL Ltd. that the underlying thrust must be on universal coverage, prevention, innovation and high quality he annual Health Conference enhance cost. The event also execution. of FICCI on the theme focussed on integrating and T'Sustainable Quality mainstreaming AYUSH system of Dr. A Didar Singh, Secretary Healthcare' took a comprehensive medicine to move towards General, FICCI, said that to achieve view of the challenges faced by the achieving Universal Health financial viability and sustainability healthcare sector by discussing and Coverage. in both the public and private sector, government needs to keep debating each element and the While inaugurating the the healthcare out of GST and corresponding cost implications conference, Dr. Syeda S Hameed, extend tax holiday from current five towards delivery of quality Member, Planning Commission, years to ten years for establishing healthcare both in the public and complimented FICCI for all the healthcare facilities in non-metros private healthcare sector. The good work done in healthcare for for minimum of 50 bedded significant issues included hospital ensuring greater accessible and hospitals instead of current 100. planning, infrastructure, operations affordable quality healthcare for and innovation in technology and the people, especially the poor. She Nilanjan Sanyal, Secretary practice were discussed in great called for models ensuring (AYUSH), MoHFW and Dr. Nata detail at the conference. The seamless public private partnership Menabde, WHO representative to conference also reflected on the and mass screening of the India, also addressed the inaugural need of reduction in disease population for determining the session of the conference. burden by focus on early diagnosis prevalence and necessary A FICCI-EY working paper on and prevention and to breaking the strategies for tackling the growing 'Universal Health Cover for India: myth that adherence to quality menace of non-communicable Evolving a Framework for standards would necessarily diseases. Healthcare Reimbursement

6 n FICCI Business Digest n September 2013 Healthcare providers to be graded in terms of patient-safety and quality of delivery

6 n FICCI Business Digest n September 2013 L to R: Ramesh Sippy, Film Personality (centre), presenting the FICCI Healthcare Personality of the Year Award to Dr. Narottam Puri in the presence of Dr. A Didar Singh, Secretary General, FICCI (left); Kiran Joneja and Awards Jury Chairperson, M Damodaran.

Lack of appropriate planning, inadequate skilled human resources and maintenance of healthcare facilities were identified as some of the key issues hindering the hospital infrastructure in the country. To overcome these issues, it was recommended that planning Methodologies' was released at the focusing on the approach to should be very detailed covering all conference. The paper critically achieve universal health coverage, aspects of healthcare. Site and analyses the current identify the missing links, project consultant selection, reimbursement methodologies strengthening the public healthcare awareness of building, waste and followed for Government delivery system and assessing the other regulatory norms and sponsored health insurance private and public sectors securing complete funding at schemes which may compromise contribution. According to him, the planning stage itself would go a patient's safety and dis-incentivise four key areas to be looked at are long way in better hospital quality conscious providers in their increased health care spending and infrastructure for the long term. quest to actively participate in resources; cost effective financing Low cost technology was making affordable and quality care mechanism; technology and identified as a key enabler of for all a reality. The report also research and strategic investment sustainable quality healthcare. proposes a new reimbursement in medical education system. He There is a strong need to develop framework for more effective PPP urged FICCI to create a Task Force an enabling ecosystem for in in-patient healthcare delivery. A on Sustainability and provide facilitating healthcare innovation FICCI Knowledge Paper on inputs to the government on these with active participation from 'Reinventing Affordable and lines. industry, academia and the Universal Healthcare through R K Jain, Additional Secretary, Government. The quantum of Innovation' was also presented at MoHFW, appreciated FICCI's efforts funding for R&D has to be the conference. in taking forward both National increased manifold and regulatory Some of the key messages that Standard Treatment Guidelines and framework should enable emerged out of the discussions are Standards for Electronic Health indigenous development of the Government would gradually Records. The current reforms in medical technologies. shift towards a mechanism wherein standardisation are being taken up There is also a need to break the providers would be graded on the at the highest levels of the myth that enhancing quality would basis of patient safety and quality government. He also highlighted lead to higher costs. Ascertaining of care. For achieving this, the the Government's current initiative the value and savings accrued government needs to look at of providing free generic drugs and through enhanced quality developing national costing its intention to cover the whole standards over time would guidelines for differential capturing country under the scheme in due establish that costs are far of the cost of care and mechanism course. outweighed by the savings. The to include incentives and Provision for clean drinking water, environmental changes are creating disincentives for quality assurance. vastly improved sanitation and a need for shift from organisational C K Mishra, Additional Secretary, hygiene standards in the country centric to patient centric approach Ministry of Health and Family would go a long way in reducing to quality and a conscious n Welfare (MoHFW), spoke about the disease burden in the country. measurement of outcomes.

8 n FICCI Business Digest n September 2013 L to R: Ramesh Sippy, Film Personality (centre), presenting the FICCI Healthcare Personality of the Year Award to Dr. Narottam Puri in the presence of Dr. A Didar Singh, Secretary General, FICCI (left); Kiran Joneja and Awards Jury Chairperson, M Damodaran.

8 n FICCI Business Digest n September 2013 t is ironic that although Indian private sector. Even in mass leads to long gestation period for a healthcare is growing at a government programmes like hospital to break even i.e., Ihealthy CAGR of 15.4 per cent NRHM, there is a growing tendency anywhere between 6-8 years. and has reached US$ 60 billion in and need for collaboration with the Moreover, PPPs have not been 2010-2011, issues of affordability, private sector to bridge the gaps in successful due to lack of uniform accessibility, and quality continue the public system. governance structure and to persist. In its endeavour to make Although, the Indian healthcare unrealistic tariffs set for cost of healthcare accessible and cost are the lowest compared to treatment. affordable, the government is anywhere in the world for the In the above context, there is a increasingly seen to be moving similar quality of care, low per strong need to consider the myriad from being a provider to payor capita income (~ Rs. 70,000 p.a.) challenges faced by the private especially with the expansion of makes it unaffordable to the healthcare sector in marrying Government Sponsored Health masses. On the other hand, cost of affordability with viability. Some of Insurance Schemes (GSHIS) with care has been steadily increasing; the key issues to achieve financial estimates of covering 500 million medical inflation has remained at viability and sustainability in both people by 2015. The limited 12-15 per cent in recent years. This public and private healthcare capacities in public healthcare is primarily due to high capital facilities are discussed below. sector has encouraged forging of investments towards land, Standardization of healthcare PPPs and new private hospitals infrastructure and medical practices: At present the health being set up to cater to insured technology. The ever increasing system in India consists of patients under the schemes. Nearly input costs of human resources and healthcare providers operating two-third of the total ~11000 consumables and non-scientific within an unregulated environment, empanelled hospitals in RSBY tariff determination by both with no controls on what services (Rashtriya Swasthiya Bima Yojana) insurance companies and GSHIS can be provided by whom, in what scheme for instance is from the are adding to the burden. This manner, at what cost, and with no standardised protocols to help measure the quality of care. However, it is hoped that with the increasing acceptance of the Moving towards Clinical Establishment Act 2010 by states, some semblance of sustainable quality standardisation will be achieved. The Health Ministry’s efforts towards development of National healthcare Standard Treatment Guidelines Sangita Reddy* (NSTGs) for ~230 conditions across 20 disease specialties and Electronic Health Record (EHR) Standards for the country are commendable. Standard Treatment Guidelines would help in standardisation of treatment procedures; ensure more predictability of outcomes and contain costs to the extent possible by reducing unnecessary investigations. EHR on the other hand, is the single most standard tool which will help in data warehousing, monitoring and portability which would greatly reduce diagnostic time and help in creating a national health database.

10 n FICCI Business Digest n September 2013 t is ironic that although Indian private sector. Even in mass leads to long gestation period for a healthcare is growing at a government programmes like hospital to break even i.e., Ihealthy CAGR of 15.4 per cent NRHM, there is a growing tendency anywhere between 6-8 years. and has reached US$ 60 billion in and need for collaboration with the Moreover, PPPs have not been 2010-2011, issues of affordability, private sector to bridge the gaps in successful due to lack of uniform accessibility, and quality continue the public system. governance structure and to persist. In its endeavour to make Although, the Indian healthcare unrealistic tariffs set for cost of healthcare accessible and cost are the lowest compared to treatment. affordable, the government is anywhere in the world for the In the above context, there is a increasingly seen to be moving similar quality of care, low per strong need to consider the myriad from being a provider to payor capita income (~ Rs. 70,000 p.a.) challenges faced by the private especially with the expansion of makes it unaffordable to the healthcare sector in marrying Government Sponsored Health masses. On the other hand, cost of affordability with viability. Some of Insurance Schemes (GSHIS) with care has been steadily increasing; the key issues to achieve financial estimates of covering 500 million medical inflation has remained at viability and sustainability in both people by 2015. The limited 12-15 per cent in recent years. This public and private healthcare capacities in public healthcare is primarily due to high capital facilities are discussed below. sector has encouraged forging of investments towards land, Standardization of healthcare PPPs and new private hospitals infrastructure and medical practices: At present the health being set up to cater to insured technology. The ever increasing system in India consists of patients under the schemes. Nearly input costs of human resources and healthcare providers operating two-third of the total ~11000 consumables and non-scientific within an unregulated environment, empanelled hospitals in RSBY tariff determination by both with no controls on what services (Rashtriya Swasthiya Bima Yojana) insurance companies and GSHIS can be provided by whom, in what scheme for instance is from the are adding to the burden. This manner, at what cost, and with no standardised protocols to help measure the quality of care. However, it is hoped that with the increasing acceptance of the Moving towards Clinical Establishment Act 2010 by states, some semblance of sustainable quality standardisation will be achieved. The Health Ministry’s efforts towards development of National healthcare Standard Treatment Guidelines Sangita Reddy* (NSTGs) for ~230 conditions across 20 disease specialties and Electronic Health Record (EHR) Standards for the country are commendable. Standard Treatment Guidelines would help in standardisation of treatment procedures; ensure more predictability of outcomes and contain costs to the extent possible by reducing unnecessary investigations. EHR on the other hand, is the single most standard tool which will help in data warehousing, monitoring and portability which would greatly reduce diagnostic time and help in creating a national health database.

10 n FICCI Business Digest n September 2013 This should pave the way for an all- physicians and 1.0 nurse per 1000 Tariff determination and encompassing health information population vs. global average of 1.4 payment methods: portal, which has detailed and 2.8, respectively. Hence, it is The healthcare providers, demographic data helping in critical for every type of healthcare particularly the small and medium periodic review of disease-wise, facility today to have appropriate sized hospitals that are largely city-wise and region-wise hospital and human resource dependent on patients covered information. Simultaneously, the management for optimising the under GSHIS, CGHS and ESIS are IRDA has been working closely with utilisation of resources by bringing crumbling under the financial the industry to standardise several in standard operating practices. pressure due to the unrealistic tariff operational areas like billing and High cost of medical technology: determination and delays in discharge formats, critical illness Although medical technology is payments. The current focus of definitions, agreements between the one of the key pillars of most GSHIS is on the economics of providers & payors that would healthcare, over 80 per cent of the procurement rather than on streamline the operational issues consumption in the country aspects related to patient safety persisting between insurers and depends on imports leading to and care. A fundamental shift is providers and help increasing high capex cost. Despite the required in which providers are affordability of care through better growth of scientific and graded on the basis of patient penetration of health insurance in technological development in India, safety and quality of care; national the country. availability of appropriate and costing guidelines for differential We, at FICCI, are proud to have affordable health technologies and capturing of the cost of care and supported and worked closely with e-Health solutions is inadequate. mechanism to include incentives the Ministry and IRDA in this game This is due to lack of appropriate and disincentives for quality changing effort. ecosystem for innovation and the assurance. Planning and infrastructure several regulatory and policy level The present challenge is to challenges: Hospital planning and challenges faced by the industry. establish new and sustain existing designing is a complex exercise For sustainable quality healthcare institutions that are financially due to the multiplicity and diversity in India, medical technology needs sound and responsive to the of activities involved in healthcare. more indigenous innovation and dynamic needs of the people. The An ideal healthcare infrastructure manufacturing initiatives. A private healthcare sector will will not only provide for all aspects quantum increase in allocation of require a renewed look at their of patient safety but should also R&D funds for local innovation with business model with appropriate lead to affordable healthcare. There synergies between the government, changes in their capex is a need for an integrated academia and industry will help in requirements, streamlined approach to planning of hospitals driving the growth of the sector. operations and lean execution to in order to make them reliable and Negligible primary and sustain and capture new avenues of viable. A holistic approach for preventive healthcare: growth. Similarly, the public design, construction, operations healthcare providers too will have Early detection of disease is easy and maintenance will help in to bring in operational and to manage and reduces the reduction of capital and management efficiencies for economic burden on both operational cost while fulfilling its sustainability. Along with this, the individual and the state. The core mission of ensuring patient policy makers have to create an burden of non-communicable safety. enabling environment for the diseases is expected to double to healthcare sector to prosper and Operational challenges: 57 per cent by the year 2020 cater to the needs of a billion plus Operational cost is an amalgam compared to 1990, while the population. n of medical consumables and incidence of communicable devices, human resources, diseases still remains high. There is * Sangita Reddy is Chairperson, operation and maintenance a compelling need to promote FICCI Health Services Committee expenses, as well as hospital preventive and primary care and ED, Apollo Hospital Group. utilities and non-health services. through general practitioners and The operational challenges are home care as a step towards magnified by the huge shortfall in affordability and sustainability of healthcare human resources and healthcare. rising salary costs. India has just 0.7

12 n FICCI Business Digest n September 2013 This should pave the way for an all- physicians and 1.0 nurse per 1000 Tariff determination and encompassing health information population vs. global average of 1.4 payment methods: portal, which has detailed and 2.8, respectively. Hence, it is The healthcare providers, demographic data helping in critical for every type of healthcare particularly the small and medium periodic review of disease-wise, facility today to have appropriate sized hospitals that are largely city-wise and region-wise hospital and human resource dependent on patients covered information. Simultaneously, the management for optimising the under GSHIS, CGHS and ESIS are IRDA has been working closely with utilisation of resources by bringing crumbling under the financial the industry to standardise several in standard operating practices. pressure due to the unrealistic tariff operational areas like billing and High cost of medical technology: determination and delays in discharge formats, critical illness Although medical technology is payments. The current focus of definitions, agreements between the one of the key pillars of most GSHIS is on the economics of providers & payors that would healthcare, over 80 per cent of the procurement rather than on streamline the operational issues consumption in the country aspects related to patient safety persisting between insurers and depends on imports leading to and care. A fundamental shift is providers and help increasing high capex cost. Despite the required in which providers are affordability of care through better growth of scientific and graded on the basis of patient penetration of health insurance in technological development in India, safety and quality of care; national the country. availability of appropriate and costing guidelines for differential We, at FICCI, are proud to have affordable health technologies and capturing of the cost of care and supported and worked closely with e-Health solutions is inadequate. mechanism to include incentives the Ministry and IRDA in this game This is due to lack of appropriate and disincentives for quality changing effort. ecosystem for innovation and the assurance. Planning and infrastructure several regulatory and policy level The present challenge is to challenges: Hospital planning and challenges faced by the industry. establish new and sustain existing designing is a complex exercise For sustainable quality healthcare institutions that are financially due to the multiplicity and diversity in India, medical technology needs sound and responsive to the of activities involved in healthcare. more indigenous innovation and dynamic needs of the people. The An ideal healthcare infrastructure manufacturing initiatives. A private healthcare sector will will not only provide for all aspects quantum increase in allocation of require a renewed look at their of patient safety but should also R&D funds for local innovation with business model with appropriate lead to affordable healthcare. There synergies between the government, changes in their capex is a need for an integrated academia and industry will help in requirements, streamlined approach to planning of hospitals driving the growth of the sector. operations and lean execution to in order to make them reliable and Negligible primary and sustain and capture new avenues of viable. A holistic approach for preventive healthcare: growth. Similarly, the public design, construction, operations healthcare providers too will have Early detection of disease is easy and maintenance will help in to bring in operational and to manage and reduces the reduction of capital and management efficiencies for economic burden on both operational cost while fulfilling its sustainability. Along with this, the individual and the state. The core mission of ensuring patient policy makers have to create an burden of non-communicable safety. enabling environment for the diseases is expected to double to healthcare sector to prosper and Operational challenges: 57 per cent by the year 2020 cater to the needs of a billion plus Operational cost is an amalgam compared to 1990, while the population. n of medical consumables and incidence of communicable devices, human resources, diseases still remains high. There is * Sangita Reddy is Chairperson, operation and maintenance a compelling need to promote FICCI Health Services Committee expenses, as well as hospital preventive and primary care and ED, Apollo Hospital Group. utilities and non-health services. through general practitioners and The operational challenges are home care as a step towards magnified by the huge shortfall in affordability and sustainability of healthcare human resources and healthcare. rising salary costs. India has just 0.7

12 n FICCI Business Digest n September 2013 "expand and diversify the economic cooperation" in agriculture, water India and Iraq: resource management, pharmaceuticals, healthcare, information technology, infrastructure, low cost housing and Time for new synergies trade. There are now strong reasons for India and Iraq to take the bilateral relations an extra mile and deepen them. First, Indian companies are seriously willing to work and expand their activities in various fields, especially infrastructure projects, an area crucially important to Iraq's ongoing rebuilding and reconstruction efforts. Iraq is keen to see Indian involvement as conveyed by Prime Minister Kamil al-Maliki during his visit. Second, the new environment of Iraq has unfolded a conducive climate for doing business by the public sector and private sector. It is protected, maintained by new laws that were not in existence before and there is assurance to Indian businessmen and companies of support, protection and guarantees. As this visit of the Iraq Prime Minister has underscored, there is potential for cooperation in many areas that both sides need to Naina Lal Kidwai, President, FICCI, in explore and which can inject a new conversation with Kamil al-Maliki, dynamism in the relationship. Prime Minister of Iraq (right) and Anand Sharma, India's Commerce and The strongest example is Industry Minister. obviously the energy sector. No doubt, Iraq has become India's second largest crude oil supplier, with an estimated crude import The new environment il's well between India and worth more than US$ 15 billion in Iraq if the recent visit of of Iraq has unfolded a 2012 but New Delhi and Baghdad Othe Iraq Prime Minister are now keen for an elevation of conducive climate for Kamil al-Maliki to India and the the buyer-seller relationship to a doing business by the ensuring dynamics are any strategic partnership through joint indication. The India-Iraq public sector and ventures in oil exploration, relationship sealed by centuries old petrochemical complexes and private sector. cultural, spiritual exchanges, India's fertiliser plants. This, as desired by committed partnership in Iraq's Prime Minister Dr. Manmohan progress towards a free, Singh, would bring equity FICCI KK Birla Auditorium democratic, progressive and unified partnership in oil production, and state is now set to travel wider and joint ventures in oil exploration, deeper, courtesy a mutual desire to

14 n FICCI Business Digest n September 2013 "expand and diversify the economic cooperation" in agriculture, water India and Iraq: resource management, pharmaceuticals, healthcare, information technology, infrastructure, low cost housing and Time for new synergies trade. There are now strong reasons for India and Iraq to take the bilateral relations an extra mile and deepen them. First, Indian companies are seriously willing to work and expand their activities in various fields, especially infrastructure projects, an area crucially important to Iraq's ongoing rebuilding and reconstruction efforts. Iraq is keen to see Indian involvement as conveyed by Prime Minister Kamil al-Maliki during his visit. Second, the new environment of Iraq has unfolded a conducive climate for doing business by the public sector and private sector. It is protected, maintained by new laws that were not in existence before and there is assurance to Indian businessmen and companies of support, protection and guarantees. As this visit of the Iraq Prime Minister has underscored, there is potential for cooperation in many areas that both sides need to Naina Lal Kidwai, President, FICCI, in explore and which can inject a new conversation with Kamil al-Maliki, dynamism in the relationship. Prime Minister of Iraq (right) and Anand Sharma, India's Commerce and The strongest example is Industry Minister. obviously the energy sector. No doubt, Iraq has become India's second largest crude oil supplier, with an estimated crude import The new environment il's well between India and worth more than US$ 15 billion in Iraq if the recent visit of of Iraq has unfolded a 2012 but New Delhi and Baghdad Othe Iraq Prime Minister are now keen for an elevation of conducive climate for Kamil al-Maliki to India and the the buyer-seller relationship to a doing business by the ensuring dynamics are any strategic partnership through joint indication. The India-Iraq public sector and ventures in oil exploration, relationship sealed by centuries old petrochemical complexes and private sector. cultural, spiritual exchanges, India's fertiliser plants. This, as desired by committed partnership in Iraq's Prime Minister Dr. Manmohan progress towards a free, Singh, would bring equity FICCI KK Birla Auditorium democratic, progressive and unified partnership in oil production, and state is now set to travel wider and joint ventures in oil exploration, deeper, courtesy a mutual desire to

14 n FICCI Business Digest n September 2013 nationals visiting India for FICCI delegation explores prospects of cooperation medicare, the two sides can look at exchange of health personnel, medical personnel, nursing in SMEs and greater flow of capital from Japan personnel, training, participation in conferences in both countries and cooperation in pharmaceuticals. Similarly, with the number of Iraqi students studying in India growing considerably over the past few years to touch 10,000, education has emerged as a key area of mutual interest and further collaboration. The agreements signed between India and Iraq on cooperation in Anand Sharma, India's Commerce and Industry Minister shaking hands with these fields would establish the Kamil al-Maliki, Prime Minister of Iraq (2nd from right). Also seen is Naina Lal Kidwai, crucial institutional framework to President, FICCI. enhance co-operation in the petrochemical complexes and In the railway sector, the Iraqis identified areas and boost fertiliser plants. have welcomed the expression of economic and trade relations. interest by IRCON in turnkey The MoU signed between India As both countries seek to execution of railway projects in Iraq and Iraq on cooperation in the field increase their oil trade and expand including civil and track works, cooperation in other areas, of energy is expected to provide a L to R: Arun Goyal, Minister Economic & hen Japan was cruising boost the prospects of cooperation electrification, signalling, setting up including agriculture, India and Iraq strong framework to further Commercial, Embassy of India in Japan; on one of the most in areas such as SMEs and sought of workshops/production units for are open to considering the diversify cooperation. The stage Rohit Relan, Co-chairman India Japan rapid growth greater flow of capital from Japan rolling stock and its supply. possibility of trading in their JBC & Managing Director Bharat Seats W has been set with Iraq expressing a trajectories in the Japanese to India as infusion of external currencies. A local currency Ltd; Yuko Obuchi, Senior Vice Minister for desire for Indian companies such as Keeping in view the demand for economic history in the 1960s financial resources has become the payment mechanism will insulate Finance, Japan; Ambika Sharma, Deputy IOC, RIL etc to participate in the low-cost housing in Iraq, both sides surpassing Germany to become the lifeline of emerging economies. India's oil purchases from the sharp Secretary General, FICCI; Ranjit setting up of the planned five new will now explore the possibilities of Barthakur, Chairman, Globally Managed second largest economy in the fluctuations in the rupee value It was also the largest-ever FICCI refineries. Iraq has also agreed to involvement of Indian public and Services and Atul Shunglu, Assistant world, FICCI was the first business against the dollar and save traders business delegation to Japan, consider India's proposal for a private sector companies in the Secretary General, FICCI. chamber to set up a bilateral from exchange rate losses. With the comprising 70 companies and over long-term (10-year) pact to meet low-cost housing sector in Iraq. mechanism, the India-Japan gains out of such an arrangement 100 participants from diversified the increased crude oil demand by Business Cooperation Committee Both India and Iraq have agreed becoming apparent to both, India sectors and represented by the the new refineries and also (IJBCC) in 1966, for engagement to cooperate in agricultural and Iraq, according to Commerce captains of industry, business consider India's request for better between the two countries. In fact, education and research activities and Industry Minister Anand heads, senior state government terms, including abolition of Line of Japan was the first country to have through signing of an appropriate Sharma, are exploring the officials and top consultants. Credit requirement and an increase the institutional arrangement of institutional framework MOU for possibility of trading in their local The initiative was timed suitably in interest-free credit period from Joint Business Council with FICCI. mutual benefit. currencies - dinar and rupee and to serve as a build-up to the 30 to 60 days. Over the years, IJBCC - being jointly the officials are expected to take up momentum generated in the ties An MOU on water resource organized by FICCI and JCCI, Japan In the steel sector, greater discussions on this. The India-Japan between India and Japan in the last management between India and Chamber of Commerce and cooperation would include joint few years through a series of high- Iraq has opened up the prospects The Iraq Government's overtures Comprehensive Industry - has evolved and became ventures to set up steel plant in level visits and growing of cooperation through demonstrate that India remains a Economic Partnership an important platform to stimulate Iraq or in India for production of engagement transforming India- collaboration and sharing of non-polarising factor in Iraq's bilateral trade, investments and steel pipes with the purpose of Agreement (CEPA) Japan relations into a strategic and experience and expertise between foreign policy and our relations go technological transfers. transporting oil in Iraq. In power, global partnership. FICCI has been the two sides. beyond oil. The two countries now signed in February recognising the existing capabilities To participate in the 38th Joint instrumental in this calibration and need to jointly rebuild on the 2011, promises to of BHEL in manufacturing gas India has already been active in Meeting of IJBCC, a high-powered had led several initiatives to mutuality of their current interests turbine units, the Iraqi side has the area of capacity building in boost trade to US$ 25 FICCI Mission led by Onkar S stimulate bilateral trade, in the region and globally. n agreed to include BHEL as a Iraq, including in higher education billion by 2014. Kanwar, Past President, FICCI and investments and technological qualified equipment manufacturer and healthcare. Keeping in view the CMD, Apollo Tyres, visited Japan in transfers. for its power sector. increasing number of Iraqi the first week of September to

16 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 17 nationals visiting India for FICCI delegation explores prospects of cooperation medicare, the two sides can look at exchange of health personnel, medical personnel, nursing in SMEs and greater flow of capital from Japan personnel, training, participation in conferences in both countries and cooperation in pharmaceuticals. Similarly, with the number of Iraqi students studying in India growing considerably over the past few years to touch 10,000, education has emerged as a key area of mutual interest and further collaboration. The agreements signed between India and Iraq on cooperation in Anand Sharma, India's Commerce and Industry Minister shaking hands with these fields would establish the Kamil al-Maliki, Prime Minister of Iraq (2nd from right). Also seen is Naina Lal Kidwai, crucial institutional framework to President, FICCI. enhance co-operation in the petrochemical complexes and In the railway sector, the Iraqis identified areas and boost fertiliser plants. have welcomed the expression of economic and trade relations. interest by IRCON in turnkey The MoU signed between India As both countries seek to execution of railway projects in Iraq and Iraq on cooperation in the field increase their oil trade and expand including civil and track works, cooperation in other areas, of energy is expected to provide a L to R: Arun Goyal, Minister Economic & hen Japan was cruising boost the prospects of cooperation electrification, signalling, setting up including agriculture, India and Iraq strong framework to further Commercial, Embassy of India in Japan; on one of the most in areas such as SMEs and sought of workshops/production units for are open to considering the diversify cooperation. The stage Rohit Relan, Co-chairman India Japan rapid growth greater flow of capital from Japan rolling stock and its supply. possibility of trading in their JBC & Managing Director Bharat Seats W has been set with Iraq expressing a trajectories in the Japanese to India as infusion of external currencies. A local currency Ltd; Yuko Obuchi, Senior Vice Minister for desire for Indian companies such as Keeping in view the demand for economic history in the 1960s financial resources has become the payment mechanism will insulate Finance, Japan; Ambika Sharma, Deputy IOC, RIL etc to participate in the low-cost housing in Iraq, both sides surpassing Germany to become the lifeline of emerging economies. India's oil purchases from the sharp Secretary General, FICCI; Ranjit setting up of the planned five new will now explore the possibilities of Barthakur, Chairman, Globally Managed second largest economy in the fluctuations in the rupee value It was also the largest-ever FICCI refineries. Iraq has also agreed to involvement of Indian public and Services and Atul Shunglu, Assistant world, FICCI was the first business against the dollar and save traders business delegation to Japan, consider India's proposal for a private sector companies in the Secretary General, FICCI. chamber to set up a bilateral from exchange rate losses. With the comprising 70 companies and over long-term (10-year) pact to meet low-cost housing sector in Iraq. mechanism, the India-Japan gains out of such an arrangement 100 participants from diversified the increased crude oil demand by Business Cooperation Committee Both India and Iraq have agreed becoming apparent to both, India sectors and represented by the the new refineries and also (IJBCC) in 1966, for engagement to cooperate in agricultural and Iraq, according to Commerce captains of industry, business consider India's request for better between the two countries. In fact, education and research activities and Industry Minister Anand heads, senior state government terms, including abolition of Line of Japan was the first country to have through signing of an appropriate Sharma, are exploring the officials and top consultants. Credit requirement and an increase the institutional arrangement of institutional framework MOU for possibility of trading in their local The initiative was timed suitably in interest-free credit period from Joint Business Council with FICCI. mutual benefit. currencies - dinar and rupee and to serve as a build-up to the 30 to 60 days. Over the years, IJBCC - being jointly the officials are expected to take up momentum generated in the ties An MOU on water resource organized by FICCI and JCCI, Japan In the steel sector, greater discussions on this. The India-Japan between India and Japan in the last management between India and Chamber of Commerce and cooperation would include joint few years through a series of high- Iraq has opened up the prospects The Iraq Government's overtures Comprehensive Industry - has evolved and became ventures to set up steel plant in level visits and growing of cooperation through demonstrate that India remains a Economic Partnership an important platform to stimulate Iraq or in India for production of engagement transforming India- collaboration and sharing of non-polarising factor in Iraq's bilateral trade, investments and steel pipes with the purpose of Agreement (CEPA) Japan relations into a strategic and experience and expertise between foreign policy and our relations go technological transfers. transporting oil in Iraq. In power, global partnership. FICCI has been the two sides. beyond oil. The two countries now signed in February recognising the existing capabilities To participate in the 38th Joint instrumental in this calibration and need to jointly rebuild on the 2011, promises to of BHEL in manufacturing gas India has already been active in Meeting of IJBCC, a high-powered had led several initiatives to mutuality of their current interests turbine units, the Iraqi side has the area of capacity building in boost trade to US$ 25 FICCI Mission led by Onkar S stimulate bilateral trade, in the region and globally. n agreed to include BHEL as a Iraq, including in higher education billion by 2014. Kanwar, Past President, FICCI and investments and technological qualified equipment manufacturer and healthcare. Keeping in view the CMD, Apollo Tyres, visited Japan in transfers. for its power sector. increasing number of Iraqi the first week of September to

16 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 17 Need to provide energy to all at affordable prices; open markets with safety nets for vulnerable sections vital

B2B meetings in progress.

Even as businesses from both released at the 38th Joint Meeting will have nine mega industrial sides got connected and tried to of the India-Japan Business zones, high speed freight lines, build bridges of partnership Cooperation Committee on three ports, six airports, a six-lane through more than 250 business- September 4, 2013 in Tokyo and intersection-free expressway to-business interactions held will be a valuable reference connecting the country’s political during this mission, the overall document for Japanese companies and financial capitals, and a 4000 objective of FICCI’s strategy has eyeing the Indian market or MW power plant. been to impart greater substance planning business expansion in The Japanese could also bring in to the steadily expanding economic India. their technology and experience in relations. Bilateral trade between Japan could well look at the setting up of an entire Indian and Japan has seen manufacturing, the next big integrated value chain in the food substantial growth over the years opportunity in India. India is processing sector. The other major and reached US$ 18.6 billion in looking at the creation of several area of collaboration could be 2012-13. The India-Japan National Investment and energy. With Japan now open to Comprehensive Economic Manufacturing Zones to revamp development of nuclear energy in Partnership Agreement (CEPA) the ailing manufacturing sector, India, the estimated US$ 100 billion signed in February 2011, promises create jobs and turn around the Indian nuclear energy market could to boost trade to US$ 25 billion by Indian economy. There is be an attractive prospect for 2014. opportunity to draw FDI in the Mitsubishi, Hitachi and Toshiba, In these days of tumultuous setting up of these zones, 12 of which can bring their advance civil financial markets, India could turn which have been approved and nuclear energy technologies to to one of its time-trusted friends, seven of which are along the Delhi- India and set up projects. Japan, and attract long-term capital Mumbai Industrial Corridor (DMIC). The delegation visited state-of- L to R: Salman Khurshid, Minister of External Affairs; Naina Lal Kidwai, President, nergy Security forms the given our higher interest rates. India today faces the need to the-art facilities of Toshiba and FICCI; R S Sharma, Chairman, FICCI Hydrocarbon Committee and former CMD, ONGC bedrock of a nation's Japan too is looking at India as a focus on SMEs and enhance the Taisei Technology Center in and B C Tripathi, Co-Chair, FICCI Hydrocarbon Committee and CMD, GAIL (India) Ltd. Eeconomic activity. In an potential investment destination use of technology and innovation Yokohama to understand the latest emerging economy such as India with the growing attractiveness of to upgrade them. The medium- technologies in the field of green this holds truer than ever. An ever the Indian consumer market sized players from Japan have technology, ICT and digital increasing manufacturing sector, a buttressed by a new wave of cutting-edge technology. By products. growing vehicular population, economic reforms. There are foraying into the Indian market, The delegation met Takakazu already close to 1000 Japanese growing power demand across all these players can help local Ishii, Governor, Toyama prefecture companies in India with sectors imply the necessity of an manufacturers to become more where the government mentioned investments worth US$ 14.75 assured and economically viable competitive through technology about the shooting of an Indian billion. energy supplies for India. transfers, creating more Film in Toyama and invited To deepen our engagement with employment opportunities and producers from Bollywood for India, whose oil imports Japan and draw more and more human resources development. shooting their films in Toyama. constitute 80 per cent of the total SMEs into the Indian market, FICCI India also offers huge There is a great creative potential consumption, has been taking has come out with a ‘Guide for opportunities for infrastructure. for both the countries in many concerted initiatives across the Investment in India’ in a joint Japan already has a commitment of areas which remains to be tapped. energy value chain to ease the endeavour with Amarchand US$ 4.5 billion for the ambitious n strain on our supplies. With the Mangaldas. This report was US$ 100 billion DMIC. The project

18 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 19 Need to provide energy to all at affordable prices; open markets with safety nets for vulnerable sections vital

B2B meetings in progress.

18 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 19 Conference on Energy Security, just as it happens in the US. activities. This was also an organised jointly by FICCI and the important signal to foreign players Khurshid urged the public and Ministry of External Affairs, to make investment in Indian oil “Energy security must come with the broader idea of private sector energy leaders to Khurshid said that decontrol of fuel and gas blocks, he said. energy equity. There is no security without equity. move forward with a spirit of prices and opening up of the adventure and not get bogged India, he said, has also taken Supply of energy is the basis of security, but supply markets was essential to achieve down by the fear of making significant strides in the of energy is meaningless if the consumption of that rapid growth. "There is a price to be mistakes. Mistakes that are made development on unconventional paid for freedom," he said and energy is not efficient and not in a equitable bona fide and through honest work sources of energy like coal bed added that India will not depart balance, what you have indeed is a broad based should not be punished, he methane. CBM policy was from providing safety nets for the support, and that broad based support will come if declared. formulated in 1997 and the first vulnerable sections of the people. round of blocks were offered in you have a sustainable model which supports equity The Government, he said, was "The provision of safety nets is 2001. Four rounds of bidding for along with the traditional security issues which we laying emphasis on using domestic not only a political commitment CBM blocks have already taken resources fully to moderate the speak of.” but a humanitarian consideration place in which 33 CBM blocks have impact of the vagaries of the to make open markets work," he been awarded to 8 public and international market. The Cabinet said. These safety nets come in the private sector players. Indian basins Committee on Investment (CCI) has shape of affordable housing, also seem prospective for shale cleared 31 of the 40 NELP blocks in quality education, 100 days of resources and its assessment is a single month up to April 2013. guaranteed work and now the underway and shale resources These clearances would not only provision of subsidised nutritious exploration policy is likely to be economic stabilisation of Iraq after specifically Shale Gas and Shale Oil, Conference on Energy Security, put to use an investment of US$ food to 67 per cent of the announced soon. the recent political turmoil, the has been upended the energy highlighting the various important 13.42 billion (Rs. 73179.26 crore) population, he declared. country is poised to play a key role supply-demand fundamentals factors affecting India's energy already made but will also bring in India's pipeline infrastructure is in India's oil supply equation, across the Western hemisphere. calculus in the near future. The Minister said industry had a additional investment of about US$ set to increase to almost 26000 km particularly after the shift from This will also have greater At the inaugural session, Salman role in directly sensitising and 2.5 billion (Rs. 13632 crore) in the by 2015. Similarly with respect to export of hydrocarbon volumes implications in the coming years Khurshid, Minister of External educating the judiciary, which at 3-5 years in exploration activities. power infrastructure, with the from United States to east in recent with the likely commencement of the present moment is guided by Southern grid likely to get Affairs, stated that the Government On discovery of hydrocarbons, times. Similarly the feasibility of US LNG exports to India and other legal thinking. Law without connected to the already was committed to ensuring energy huge investment is expected in energy imports via pipelines and countries in the region. economic analysis is meaningless. connected grid of East, West and equity by striking the right balance developing these blocks. Out of LNG carriers via Central Asia also In the modern world where North India by early next year, a In this backdrop, FICCI in between energy security and 3,32,960 sq km area covered by hold considerable significance. diplomacy equals economy, the national transmission grid will be collaboration with the Ministry of making available energy supplies to these 40 blocks 2,66,463 sq km in benefit of economic analysis must formed, which will bring higher The discovery and production of External Affairs (MEA) successfully all at affordable prices. 31 blocks would now be available unconventional hydrocarbons, concluded the 3rd National be available to the Supreme Court efficiency in power transmission. Inaugurating the 3rd National for exploration and production

“We need to focus on diversification of energy sources, we just saw a chart on diversification of sources, the diversification process and spreading across the greater supply base is something we are doing with the Ministry of Petroleum. There are also opportunities but we need to work with greater sensitivity with respect to hydropower from our neighbouring countries such as Nepal and Bhutan.”

Salman Khurshid, Minister of External Affairs

20 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 21 Conference on Energy Security, just as it happens in the US. activities. This was also an organised jointly by FICCI and the important signal to foreign players Khurshid urged the public and Ministry of External Affairs, to make investment in Indian oil “Energy security must come with the broader idea of private sector energy leaders to Khurshid said that decontrol of fuel and gas blocks, he said. energy equity. There is no security without equity. move forward with a spirit of prices and opening up of the adventure and not get bogged India, he said, has also taken Supply of energy is the basis of security, but supply markets was essential to achieve down by the fear of making significant strides in the of energy is meaningless if the consumption of that rapid growth. "There is a price to be mistakes. Mistakes that are made development on unconventional paid for freedom," he said and energy is not efficient and not in a equitable bona fide and through honest work sources of energy like coal bed added that India will not depart balance, what you have indeed is a broad based should not be punished, he methane. CBM policy was from providing safety nets for the support, and that broad based support will come if declared. formulated in 1997 and the first vulnerable sections of the people. round of blocks were offered in you have a sustainable model which supports equity The Government, he said, was "The provision of safety nets is 2001. Four rounds of bidding for along with the traditional security issues which we laying emphasis on using domestic not only a political commitment CBM blocks have already taken resources fully to moderate the speak of.” but a humanitarian consideration place in which 33 CBM blocks have impact of the vagaries of the to make open markets work," he been awarded to 8 public and international market. The Cabinet said. These safety nets come in the private sector players. Indian basins Committee on Investment (CCI) has shape of affordable housing, also seem prospective for shale cleared 31 of the 40 NELP blocks in quality education, 100 days of resources and its assessment is a single month up to April 2013. guaranteed work and now the underway and shale resources These clearances would not only provision of subsidised nutritious exploration policy is likely to be economic stabilisation of Iraq after specifically Shale Gas and Shale Oil, Conference on Energy Security, put to use an investment of US$ food to 67 per cent of the announced soon. the recent political turmoil, the has been upended the energy highlighting the various important 13.42 billion (Rs. 73179.26 crore) population, he declared. country is poised to play a key role supply-demand fundamentals factors affecting India's energy already made but will also bring in India's pipeline infrastructure is in India's oil supply equation, across the Western hemisphere. calculus in the near future. The Minister said industry had a additional investment of about US$ set to increase to almost 26000 km particularly after the shift from This will also have greater At the inaugural session, Salman role in directly sensitising and 2.5 billion (Rs. 13632 crore) in the by 2015. Similarly with respect to export of hydrocarbon volumes implications in the coming years Khurshid, Minister of External educating the judiciary, which at 3-5 years in exploration activities. power infrastructure, with the from United States to east in recent with the likely commencement of the present moment is guided by Southern grid likely to get Affairs, stated that the Government On discovery of hydrocarbons, times. Similarly the feasibility of US LNG exports to India and other legal thinking. Law without connected to the already was committed to ensuring energy huge investment is expected in energy imports via pipelines and countries in the region. economic analysis is meaningless. connected grid of East, West and equity by striking the right balance developing these blocks. Out of LNG carriers via Central Asia also In the modern world where North India by early next year, a In this backdrop, FICCI in between energy security and 3,32,960 sq km area covered by hold considerable significance. diplomacy equals economy, the national transmission grid will be collaboration with the Ministry of making available energy supplies to these 40 blocks 2,66,463 sq km in benefit of economic analysis must formed, which will bring higher The discovery and production of External Affairs (MEA) successfully all at affordable prices. 31 blocks would now be available unconventional hydrocarbons, concluded the 3rd National be available to the Supreme Court efficiency in power transmission. Inaugurating the 3rd National for exploration and production

Salman Khurshid, Minister of External Affairs

20 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 21 Key Takeaways

§India needs to develop a cadre of professionals who would aggressively promote and secure India's Oil & “Solar and Wind energy still remain expensive and Gas and Power interests outside of India. Having a controversial even elsewhere in the world, but I think cadre of energy diplomats drawn from a spectrum of the models which are being attempted in Europe must industries would help in objectively communicating be tried here as well. If people are willing to give their India's energy requirements to the outside world and help focus efforts towards capacity building in other lands and work in collaboration with Government nations on a compressed timeline agencies for Wind Mills then such opportunities § should be crystallised. Solar, of course has great Middle East and North Africa (MENA) region constitutes about 65 per cent of India's oil supply, potential in the country, and is the big answer.” hence an increased economic footprint in the region is vital for a long term engagement Salman Khurshid, Minister of External Affairs §It is necessary to evolve from a buyer-seller relationship towards facilitating long term investments aimed at creating high value energy assets in both regions He said, "Our domestic energy make this a reality, India is also §India's strength in having a large pool of well qualified resources however are limited and pursuing Turkmenistan- personnel, with companies having many decades of a large percentage of our oil and Afghanistan-Pakistan-India (TAPI) experience in EPC and manufacturing services allow us gas and increasingly coal, is pipeline project, which will bring to offer a diverse array of services to our middle procured from the international Turkmen gas to India. eastern partners market. In this scenario, the Naina Lal Kidwai, President, FICCI, government is also encouraging § said that India was going through a While unconventional Oil & Gas, specifically Shale Gas our energy companies to acquire tough economic phase, with the has changed the energy landscape in United States and assets abroad. India is looking at rising crude oil prices coupled with impacted the energy trade dynamics in rest of the other prospective and emerging world, India is looking at an integrated development a depreciating rupee, straining LNG suppliers like Canada, model, which includes production of both India's limited forex reserves and Mozambique, Tanzania, Russia and conventional and unconventional hydrocarbons from a also having repercussions on India's CIS, Australia and Papua New given block. This serves to maximise the energy yield economy at large. However, she Guinea. With the recent off-shore from a block, while focusing our limited resources in noted that the nation had more natural gas discoveries, East Africa an effective fashion than enough ability and resources has emerged as one of the hottest to overcome these challenges and §Various policy and infrastructural enablers, focusing on exploration place in the world. cited rapid advances towards conventional and non-conventional energy sources, Sourcing of LNG from East Africa improvement in automotive which would encourage private investment and also which is in close proximity to Indian technology, increasing energy give a fillip to domestic production must be duly market would not only provide efficiency, developments in facilitated much-needed diversity to Indian international arena towards LNG imports but also save shipping increasing India's conventional and costs." non-conventional resources foretell CIS countries like Kazakhstan and a robust energy landscape for Turkmenistan which are also not India. n very far away from Indian northern states can also become significant suppliers of energy in future. To

22 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 23 Key Takeaways

22 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 23 new beginning has been petroleum is being imported. It is Two Memoranda of four Central Public Sector made in fostering becoming increasingly difficult to Understanding (MoUs) were signed Undertakings of Ministry of Power, New and fully operational buildings and facilities Acollaboration in the PPP meet the fuel demand, especially in New Delhi on August 26, 2013. Government of India - NTPC can adopt trigeneration technology. Though the mode for giving a fillip to energy for gas power plants. National One amongst the Federation of Limited, Powergrid Corporation of capital cost is high but it could be recovered in efficiency, conservation and energy supply is not able to keep Indian Chambers of Commerce and India Limited, Power Finance management of demand. pace with the current six per cent Industry (FICCI), Energy Efficiency Corporation and Rural three years. This assumes high importance as growth rate of the Indian Services Limited (EESL) and Electrification Corporation. India is already the world's fourth economy. In order to keep Deutsche Gesellschaft für This MoU is aimed at market largest consumer of energy. Experts import dependency in the Internationale Zusammenarbeit development and implementation believe that the current energy conventional energy sector as (GIZ) and another between FICCI functions of the National Mission demand could increase twofold by low as possible, strategies for and EESL. for Enhanced Energy Efficiency 2030. Import dependence has also enhancing energy efficiency and The MoU amongst FICCI, EESL (NMEEE) which seeks to unlock the constantly been rising. Already utilising renewable energy are and GIZ will explore the feasibility energy efficiency market of Rs. more than 70 per cent of increasingly becoming the focus of implementing a project on 74000 crore. and facilities can adopt this recovered for cooling through VAM of India's energy policy. technology. Though the capital cost trigeneration simultaneous EESL shall provide its experience and low temperature water is used is high but it could be recovered in production of electricity, heating in evolving amenable policy for applications like kitchen, three years. Provisions for providing and cooling at the Federation instruments and arranging laundry and swimming pool a funding package may also be House (FICCI Headquarters) in New technical expertise required to heating. The technology is suitable worked out for those who are keen Delhi. promote energy efficiency as per for buildings that have to adopt this technology. GIZ through a demonstration the work plan approved by the simultaneous cooling and heating project financed by the government. It will associate with Bhaskar Jyoti Sarma, Secretary, load, explained Burgtorf. International Climate Initiative (ICI) FICCI in developing ESCO/CDM BEE, said that trigeneration would Dr. Arbind Prasad, Director FICCI signs 2 MoUs for of the German Federal Ministry for projects. not only save money but will General, FICCI, said that air reduce carbon footprint the Environment, Nature The MoUs were signed and conditioners are a big source of considerably. In India, there is a Conservation and Nuclear Safety exchanged during a workshop on energy consumption with need to adopt this technology adopting trigeneration and (BMU) in cooperation with the 'Trigeneration Technology - temperatures usually reaching over because in spite of having the Indian Bureau of Energy Efficiency Promotion of Energy Efficiency in 40°C in summer. Trigeneration highest coal reserves, we have been (BEE) has successfully Indian Building Sector' organised technology, i.e. the simultaneous energy efficiency technologies unable to harness its full potential. demonstrated the advantages of by FICCI in collaboration with the production of electricity and He informed that almost 50 per the trigeneration technology at Jai BEE, Indo German Energy Forum cooling through absorption chillers cent of the coal that is used for Prakash Apex Trauma Center (IGEF), GIZ, KfW and EESL. in summer or electricity and (JPATC) in New Delhi. thermal power generation consists heating in winter, is by and large While addressing the workshop, of ash. Hence, in such a scenario, unknown in India and not FICCI is interested in adopting Dr. Ajay Mathur, Director General, trigenertaion is not only efficient sufficiently tested. The efficiency of this technology in the Federation BEE, said it was the first formal but is also environment-friendly. the system reached up to 85 per House to save energy compared outreach of trigeneration Jens Burgtorf, Director, Indo cent or more by recovering waste with the present technology in use. technology. He said, "Trigeneration German Energy Program (IGEN), heat for heating and cooling EESL, on its part, is willing to technology is feasible, economically GIZ, underlined the requirements purpose. This technology has a promote this energy efficient viable, environment-friendly and for setting up trigeneration such as large potential in India. The most technology through an ESCO also provides natural resources need for 24x7 operational building promising sectors for this business model as a pilot project efficiency." Highlighting the with simultaneous electricity, technology are hotels, hospitals, which can then be replicated with advantages of the technology, he heating and cooling, space airports, shopping malls, office and other partners in India. stated that a building benefits availability in the existing building, complexes. According to the MoU between because the reliability of energy possibility of centralised cooling, FICCI and EESL, FICCI will support supply increases and there is The session was also addressed availability of natural gas and the initiative of the EESL to develop evidence of reduction in the by Saurabh Kumar, Managing significant power failure for power market for optimal electricity bill. It helps the city in Director, EESL; Markus Wypior, attractive return on investment. utilisation of energy and existing reducing the load during peak Director, Indo German Energy resources. EESL is a joint venture of hours. The country benefits as it The pilot plant has three main Forum (IGEF) and Deepak Bhutale, results in lowering imports demand components viz. gas engine, vapour Assistant Engineer, JPNATC, who Dr. Arbind Prasad, Director General, absorption machine (VAM) and explained the technical and and CO2 emissions. FICCI and Jens Burgtorf, Director, Indo centrifugal chiller. The waste heat practical aspects of the JPNATC, Dr. Mathur pointed out that both German Energy Program (IGEN), GIZ, produced during the power which is the first pilot plant of new and fully operational buildings exchanging a MoU. production from gas engine is trigeneration technology. n

24 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 25 new beginning has been petroleum is being imported. It is Two Memoranda of four Central Public Sector made in fostering becoming increasingly difficult to Understanding (MoUs) were signed Undertakings of Ministry of Power, New and fully operational buildings and facilities Acollaboration in the PPP meet the fuel demand, especially in New Delhi on August 26, 2013. Government of India - NTPC can adopt trigeneration technology. Though the mode for giving a fillip to energy for gas power plants. National One amongst the Federation of Limited, Powergrid Corporation of capital cost is high but it could be recovered in efficiency, conservation and energy supply is not able to keep Indian Chambers of Commerce and India Limited, Power Finance management of demand. pace with the current six per cent Industry (FICCI), Energy Efficiency Corporation and Rural three years. This assumes high importance as growth rate of the Indian Services Limited (EESL) and Electrification Corporation. India is already the world's fourth economy. In order to keep Deutsche Gesellschaft für This MoU is aimed at market largest consumer of energy. Experts import dependency in the Internationale Zusammenarbeit development and implementation believe that the current energy conventional energy sector as (GIZ) and another between FICCI functions of the National Mission demand could increase twofold by low as possible, strategies for and EESL. for Enhanced Energy Efficiency 2030. Import dependence has also enhancing energy efficiency and The MoU amongst FICCI, EESL (NMEEE) which seeks to unlock the constantly been rising. Already utilising renewable energy are and GIZ will explore the feasibility energy efficiency market of Rs. more than 70 per cent of increasingly becoming the focus of implementing a project on 74000 crore. and facilities can adopt this recovered for cooling through VAM of India's energy policy. technology. Though the capital cost trigeneration simultaneous EESL shall provide its experience and low temperature water is used is high but it could be recovered in production of electricity, heating in evolving amenable policy for applications like kitchen, three years. Provisions for providing and cooling at the Federation instruments and arranging laundry and swimming pool a funding package may also be House (FICCI Headquarters) in New technical expertise required to heating. The technology is suitable worked out for those who are keen Delhi. promote energy efficiency as per for buildings that have to adopt this technology. GIZ through a demonstration the work plan approved by the simultaneous cooling and heating project financed by the government. It will associate with Bhaskar Jyoti Sarma, Secretary, load, explained Burgtorf. International Climate Initiative (ICI) FICCI in developing ESCO/CDM BEE, said that trigeneration would Dr. Arbind Prasad, Director FICCI signs 2 MoUs for of the German Federal Ministry for projects. not only save money but will General, FICCI, said that air reduce carbon footprint the Environment, Nature The MoUs were signed and conditioners are a big source of considerably. In India, there is a Conservation and Nuclear Safety exchanged during a workshop on energy consumption with need to adopt this technology adopting trigeneration and (BMU) in cooperation with the 'Trigeneration Technology - temperatures usually reaching over because in spite of having the Indian Bureau of Energy Efficiency Promotion of Energy Efficiency in 40°C in summer. Trigeneration highest coal reserves, we have been (BEE) has successfully Indian Building Sector' organised technology, i.e. the simultaneous energy efficiency technologies unable to harness its full potential. demonstrated the advantages of by FICCI in collaboration with the production of electricity and He informed that almost 50 per the trigeneration technology at Jai BEE, Indo German Energy Forum cooling through absorption chillers cent of the coal that is used for Prakash Apex Trauma Center (IGEF), GIZ, KfW and EESL. in summer or electricity and (JPATC) in New Delhi. thermal power generation consists heating in winter, is by and large While addressing the workshop, of ash. Hence, in such a scenario, unknown in India and not FICCI is interested in adopting Dr. Ajay Mathur, Director General, trigenertaion is not only efficient sufficiently tested. The efficiency of this technology in the Federation BEE, said it was the first formal but is also environment-friendly. the system reached up to 85 per House to save energy compared outreach of trigeneration Jens Burgtorf, Director, Indo cent or more by recovering waste with the present technology in use. technology. He said, "Trigeneration German Energy Program (IGEN), heat for heating and cooling EESL, on its part, is willing to technology is feasible, economically GIZ, underlined the requirements purpose. This technology has a promote this energy efficient viable, environment-friendly and for setting up trigeneration such as large potential in India. The most technology through an ESCO also provides natural resources need for 24x7 operational building promising sectors for this business model as a pilot project efficiency." Highlighting the with simultaneous electricity, technology are hotels, hospitals, which can then be replicated with advantages of the technology, he heating and cooling, space airports, shopping malls, office and other partners in India. stated that a building benefits availability in the existing building, complexes. According to the MoU between because the reliability of energy possibility of centralised cooling, FICCI and EESL, FICCI will support supply increases and there is The session was also addressed availability of natural gas and the initiative of the EESL to develop evidence of reduction in the by Saurabh Kumar, Managing significant power failure for power market for optimal electricity bill. It helps the city in Director, EESL; Markus Wypior, attractive return on investment. utilisation of energy and existing reducing the load during peak Director, Indo German Energy resources. EESL is a joint venture of hours. The country benefits as it The pilot plant has three main Forum (IGEF) and Deepak Bhutale, results in lowering imports demand components viz. gas engine, vapour Assistant Engineer, JPNATC, who Dr. Arbind Prasad, Director General, absorption machine (VAM) and explained the technical and and CO2 emissions. FICCI and Jens Burgtorf, Director, Indo centrifugal chiller. The waste heat practical aspects of the JPNATC, Dr. Mathur pointed out that both German Energy Program (IGEN), GIZ, produced during the power which is the first pilot plant of new and fully operational buildings exchanging a MoU. production from gas engine is trigeneration technology. n

24 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 25 philanthropy, especially among big, working towards enhancing welfare be taken to ensure that CSR family-owned businesses, has for society, while doing business as expenditure is not construed as a found reflection in their active usual. tax on business, and hopes that the promotion of education, healthcare CSR spend would be fully tax- This concept was initially and basic services for communities. deductible. developed by Michael E. Porter and With the recent passage of the Mark R. Kramer, in a December This is all the more because Companies Bill, which stipulates a 2006 Harvard Business Review expenditure on CSR would become spend of two per cent of net profits article, "Strategy and Society: The an integral cost of doing business towards CSR, corporate social Link between Competitive for companies in the future. responsibility will join the core Advantage and Corporate Social It is also widely felt that the large business operations of companies. Responsibility." operating subsidiaries within a India is perhaps one of the first An increasing number of Group may lack the organisational countries in the world to have companies such as Nestle, Johnson capabilities to undertake CSR on mandated this, and it paves the & Johnson, or closer home, ITC, their own. way for the corporate sector to play have already begun to successfully Therefore, group-level CSR a big role in shaping communities embark on important shared value spending based on consolidated CSR, a winning proposition and improving the national initiatives. accounts could be permitted, economy. Companies all over the world are instead of CSR spending at the Dr. A Didar Singh* In several countries, including increasingly making this concept an level of individual entities. Sweden, Norway, the Netherlands, integral part of their strategy. Furthermore, the Rules could Denmark, France, and Australia, it is Creating shared value helps clarify that CSR expenditure not legally mandatory to carry out contribute to society while incurred by companies in keeping CSR activities, though there are promoting business. with conditions, stipulations and mandatory CSR reporting Broader Spin-offs orders of Government requirements. With the inclusion of departments, such as the Ministry CSR as provided in the new The benefits arising out of this of Environment and Forests, would ahatma Gandhi had Though philanthropy is an age- companies legislation in India, integration are manifold. It count towards CSR spend. stated in 1931, at FICCI's old concept, the term 'corporate there is a lot that the corporate enhances the competitiveness of a Mfourth Annual General social responsibility' began to sector can do to contribute to company, while simultaneously Value creation should not be Meeting: "Industry should consider emerge in the 1980s. Thereby employment, health, education and advancing economic and social viewed in a narrow sense, as simply themselves as trustee and servants enlarging the responsibility of poverty eradication. well-being in communities, a means of optimising short-term of the poor". This proposition holds business and shifting the focus therefore increasing the long term financial gains. The spirit behind the provision is true to this day. Gandhiji was from just 'stockholders' to sustainability of the company. Corporate social responsibility in reflecting on the role of business in 'stakeholders'. well meant and can be of immense It also enhances the possibility of the form of shared value creation is society and flagging a compassion benefit to the society; however, In the last 20 years, a large co-operation between business, the key to establishing a symbiotic that Indian society has traditionally implementation could be a percentage of British and American society and government. linkage between corporations and shown. challenge. The recently legislated companies have been at the the communities and in taking CSR provision, being a new While the new Act defines the Indian business has a rich history forefront of CSR activities to forward the India growth story. concept, needs to evolve over time. broad contours of CSR provision, of philanthropy and organisations demonstrate themselves as socially the final Rules or subordinate But for that, CSR should be such as FICCI have long adhered to responsible corporate citizens. Though many large Indian legislation will carry the finer embedded in the corporate culture, the spirit of promoting responsible companies have been engaged in Both Japan and South Korea have details. The government has been which, in turn, requires inspiration businesses. doing meaningful work for society, had a long tradition of CSR, while this spirit cannot be mechanically receptive to the legitimate concerns from the leadership and Today, it has become mandatory emerging markets such as Brazil enforced; it needs to be cultivated of India Inc and redressal of some commitment across the so businesses have to identify ways have witnessed an active CSR and nurtured over time. practical hardships will provide the organisation. n to integrate corporate social movement in recent times. corporate sector with a more To make such a movement (This article was first published in responsibility into their business conducive environment to do Nurturing CSR Spirit sustainable, it is important to flag Hindu Business Line on September strategies and strengthen the business and help adapt to the new the concept of 'Shared Value'. 16, 2013). delivery mechanisms to make a Even in China, there is an requirements. genuine social impact, while increasing realisation among This dwells on the connection *Dr. A Didar Singh is Secretary Industry views with optimism the continuing to ensure their own corporates to be seen as socially between societal and economic General of FICCI. assurance by the Minister of profitability and sustainability. responsible. progress as one of the ways in Corporate Affairs that all steps will That's the challenge. In India, the culture of which businesses have been

26 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 27 philanthropy, especially among big, working towards enhancing welfare be taken to ensure that CSR family-owned businesses, has for society, while doing business as expenditure is not construed as a found reflection in their active usual. tax on business, and hopes that the promotion of education, healthcare CSR spend would be fully tax- This concept was initially and basic services for communities. deductible. developed by Michael E. Porter and With the recent passage of the Mark R. Kramer, in a December This is all the more because Companies Bill, which stipulates a 2006 Harvard Business Review expenditure on CSR would become spend of two per cent of net profits article, "Strategy and Society: The an integral cost of doing business towards CSR, corporate social Link between Competitive for companies in the future. responsibility will join the core Advantage and Corporate Social It is also widely felt that the large business operations of companies. Responsibility." operating subsidiaries within a India is perhaps one of the first An increasing number of Group may lack the organisational countries in the world to have companies such as Nestle, Johnson capabilities to undertake CSR on mandated this, and it paves the & Johnson, or closer home, ITC, their own. way for the corporate sector to play have already begun to successfully Therefore, group-level CSR a big role in shaping communities embark on important shared value spending based on consolidated CSR, a winning proposition and improving the national initiatives. accounts could be permitted, economy. Companies all over the world are instead of CSR spending at the Dr. A Didar Singh* In several countries, including increasingly making this concept an level of individual entities. Sweden, Norway, the Netherlands, integral part of their strategy. Furthermore, the Rules could Denmark, France, and Australia, it is Creating shared value helps clarify that CSR expenditure not legally mandatory to carry out contribute to society while incurred by companies in keeping CSR activities, though there are promoting business. with conditions, stipulations and mandatory CSR reporting Broader Spin-offs orders of Government requirements. With the inclusion of departments, such as the Ministry CSR as provided in the new The benefits arising out of this of Environment and Forests, would ahatma Gandhi had Though philanthropy is an age- companies legislation in India, integration are manifold. It count towards CSR spend. stated in 1931, at FICCI's old concept, the term 'corporate there is a lot that the corporate enhances the competitiveness of a Mfourth Annual General social responsibility' began to sector can do to contribute to company, while simultaneously Value creation should not be Meeting: "Industry should consider emerge in the 1980s. Thereby employment, health, education and advancing economic and social viewed in a narrow sense, as simply themselves as trustee and servants enlarging the responsibility of poverty eradication. well-being in communities, a means of optimising short-term of the poor". This proposition holds business and shifting the focus therefore increasing the long term financial gains. The spirit behind the provision is true to this day. Gandhiji was from just 'stockholders' to sustainability of the company. Corporate social responsibility in reflecting on the role of business in 'stakeholders'. well meant and can be of immense It also enhances the possibility of the form of shared value creation is society and flagging a compassion benefit to the society; however, In the last 20 years, a large co-operation between business, the key to establishing a symbiotic that Indian society has traditionally implementation could be a percentage of British and American society and government. linkage between corporations and shown. challenge. The recently legislated companies have been at the the communities and in taking CSR provision, being a new While the new Act defines the Indian business has a rich history forefront of CSR activities to forward the India growth story. concept, needs to evolve over time. broad contours of CSR provision, of philanthropy and organisations demonstrate themselves as socially the final Rules or subordinate But for that, CSR should be such as FICCI have long adhered to responsible corporate citizens. Though many large Indian legislation will carry the finer embedded in the corporate culture, the spirit of promoting responsible companies have been engaged in Both Japan and South Korea have details. The government has been which, in turn, requires inspiration businesses. doing meaningful work for society, had a long tradition of CSR, while this spirit cannot be mechanically receptive to the legitimate concerns from the leadership and Today, it has become mandatory emerging markets such as Brazil enforced; it needs to be cultivated of India Inc and redressal of some commitment across the so businesses have to identify ways have witnessed an active CSR and nurtured over time. practical hardships will provide the organisation. n to integrate corporate social movement in recent times. corporate sector with a more To make such a movement (This article was first published in responsibility into their business conducive environment to do Nurturing CSR Spirit sustainable, it is important to flag Hindu Business Line on September strategies and strengthen the business and help adapt to the new the concept of 'Shared Value'. 16, 2013). delivery mechanisms to make a Even in China, there is an requirements. genuine social impact, while increasing realisation among This dwells on the connection *Dr. A Didar Singh is Secretary Industry views with optimism the continuing to ensure their own corporates to be seen as socially between societal and economic General of FICCI. assurance by the Minister of profitability and sustainability. responsible. progress as one of the ways in Corporate Affairs that all steps will That's the challenge. In India, the culture of which businesses have been

26 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 27 he FICCI Aditya Birla CSR Spandan Samaj Sewa Samiti; market and their need. It is Centre for Excellence and Chinmay Sengupta, CEO, ICICI important to know the focus about TGlenmark Pharmaceuticals Foundation and Dr. Alex George, the role of the private sector, which Ltd. organised a conference on Director, Action Aid India. must be a combination of the 'Combating child malnutrition: During the presentations and market place which includes the Sharing best practices' in New discussions, it was found that the product vis-a-vis the Delhi with an objective to government must create stronger developmental processes, progress understand different solutions to management systems in order to and implementation with it. address issues of child malnutrition effectively work with the Dr. K K Upadhyay, Head-CSR, and come out with a knowledge organisations and experts in this FICCI, said, "India is a country with paper on best practices in field and result in appropriate and many successful experiments; combating child malnutrition. accurate data and status updates unfortunately most of them do not The conference saw the presence such that an action can be taken achieve scale. Scaling up the impact of many dignitaries representing accordingly especially at the of such innovations requires that the Government of India, community level. Also, there is a ideas and models be spread corporates and social sector, which deficit of doctors going to rural around rapidly so that others could Ellen Johnson Sirleaf, President of Liberia addressing an interactive business meeting. included Dr. Sila Deb, Deputy areas and the medical schools must emulate them. It also requires that Commissioner (Child Health), consider this important finding and larger business organisations and Ministry of Health and Family take to encouraging students to go venture funds become aware of Welfare, Government of India; to the villages. them and support them. Indian llen Johnson Sirleaf, President Cheryl Pinto, Director Corporate Further, there was a discussion industry is among the largest in the of Liberia, the first Liberian Liberian President invites Affairs, Glenmark Pharmaceuticals about the prospective role of the world and has some of the most Ehead of state to visit India, Limited; Dr. Vandana Prasad, market forces and the private advanced plants and technologies has invited Indian business to Member of NCPCR and special sector in the domain of combating available globally. The need of the invest in her country and cash in on Indian business to invest in invitee to the Governing Body of child malnutrition wherein it is hour is to identify priority areas for the huge market that Liberia gives PHRS; Dr. Ashish Satav, Founder, important to realise that products collective action, and build on the access to. Mahan Trust; Prakash Michael, currently ongoing processes." n really play a very small role in the Addressing an interactive country's reconstruction business meeting jointly organised by FICCI, CII & ASSOCHAM, in New Health Ministry focusing on capacity building for Delhi on September 11, 2013, Sirleaf outlined her country's Vision She said, "Liberia is rich in natural the high risk and high cost of 2030 Development Strategy which resources - our forests are virgin; exploring and developing our aims at making Liberia a middle- our mountains are filled with iron offshore oil prospects. We want to healthcare providers to combat child malnutrition income country by the end of that ore, gold and diamonds; our land is create an open and transparent year. The first slice of that Vision, fertile, with plentiful rain; and our environment which guarantees the Agenda for Transformation, has share of the Atlantic Ocean has fish investors a fair return on their identified the priority areas of potential and for hydrocarbon. investment, while respecting the infrastructure, power, ports and Agriculture remains our key area of rights and dignities of our citizens," roads to put Liberia on a sustained strength, with rubber being our said Sirleaf. development path. traditional export. We also are a Sirleaf said, Liberia is focusing on "We have already become eligible major oil palm producer, with developing its manufacturing for the African Growth and recent investments from two Asian sector. Liberia looks at private Opportunity Act (AGOA); we have countries, Malaysia and Indonesia. sector participation from India in duty-free and quota-free access to Traditionally, coffee and cocoa also terms of joint ventures and the European Union market for are part of our endowment." partnerships to grow. Another exports, except arms and "A reform, nearing completion, potential sector is tourism, which ammunition; and we also have will ensure that oil policies and has huge opportunities but the tariff-free entry into ECOWAS, our legislation comply with major constraint is infrastructure in regional institution. All of this gives international best practices, and terms of availability of water, power us a market that's more than partnership with the world's best and roads. She added that the L to R: Dr. Alex George, Director, Action Aid India; Prakash Michael, Spandan Samaj Sewa Samiti; Dr. Vandana Prasad, Member of twenty-five times our own size," operators who have the technical construction of basic infrastructure NCPCR & special invitee to the Governing Body of PHRS; Dr. Ashish Satav, Founder, Mahan Trust and Chinmay Sengupta, CEO, ICICI said Sirleaf. Foundation. and financial capacity to undertake is under way. n

28 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 29 he FICCI Aditya Birla CSR Spandan Samaj Sewa Samiti; market and their need. It is Centre for Excellence and Chinmay Sengupta, CEO, ICICI important to know the focus about TGlenmark Pharmaceuticals Foundation and Dr. Alex George, the role of the private sector, which Ltd. organised a conference on Director, Action Aid India. must be a combination of the 'Combating child malnutrition: During the presentations and market place which includes the Sharing best practices' in New discussions, it was found that the product vis-a-vis the Delhi with an objective to government must create stronger developmental processes, progress understand different solutions to management systems in order to and implementation with it. address issues of child malnutrition effectively work with the Dr. K K Upadhyay, Head-CSR, and come out with a knowledge organisations and experts in this FICCI, said, "India is a country with paper on best practices in field and result in appropriate and many successful experiments; combating child malnutrition. accurate data and status updates unfortunately most of them do not The conference saw the presence such that an action can be taken achieve scale. Scaling up the impact of many dignitaries representing accordingly especially at the of such innovations requires that the Government of India, community level. Also, there is a ideas and models be spread corporates and social sector, which deficit of doctors going to rural around rapidly so that others could Ellen Johnson Sirleaf, President of Liberia addressing an interactive business meeting. included Dr. Sila Deb, Deputy areas and the medical schools must emulate them. It also requires that Commissioner (Child Health), consider this important finding and larger business organisations and Ministry of Health and Family take to encouraging students to go venture funds become aware of Welfare, Government of India; to the villages. them and support them. Indian llen Johnson Sirleaf, President Cheryl Pinto, Director Corporate Further, there was a discussion industry is among the largest in the of Liberia, the first Liberian Liberian President invites Affairs, Glenmark Pharmaceuticals about the prospective role of the world and has some of the most Ehead of state to visit India, Limited; Dr. Vandana Prasad, market forces and the private advanced plants and technologies has invited Indian business to Member of NCPCR and special sector in the domain of combating available globally. The need of the invest in her country and cash in on Indian business to invest in invitee to the Governing Body of child malnutrition wherein it is hour is to identify priority areas for the huge market that Liberia gives PHRS; Dr. Ashish Satav, Founder, important to realise that products collective action, and build on the access to. Mahan Trust; Prakash Michael, currently ongoing processes." n really play a very small role in the Addressing an interactive country's reconstruction business meeting jointly organised by FICCI, CII & ASSOCHAM, in New Health Ministry focusing on capacity building for Delhi on September 11, 2013, Sirleaf outlined her country's Vision She said, "Liberia is rich in natural the high risk and high cost of 2030 Development Strategy which resources - our forests are virgin; exploring and developing our aims at making Liberia a middle- our mountains are filled with iron offshore oil prospects. We want to healthcare providers to combat child malnutrition income country by the end of that ore, gold and diamonds; our land is create an open and transparent year. The first slice of that Vision, fertile, with plentiful rain; and our environment which guarantees the Agenda for Transformation, has share of the Atlantic Ocean has fish investors a fair return on their identified the priority areas of potential and for hydrocarbon. investment, while respecting the infrastructure, power, ports and Agriculture remains our key area of rights and dignities of our citizens," roads to put Liberia on a sustained strength, with rubber being our said Sirleaf. development path. traditional export. We also are a Sirleaf said, Liberia is focusing on "We have already become eligible major oil palm producer, with developing its manufacturing for the African Growth and recent investments from two Asian sector. Liberia looks at private Opportunity Act (AGOA); we have countries, Malaysia and Indonesia. sector participation from India in duty-free and quota-free access to Traditionally, coffee and cocoa also terms of joint ventures and the European Union market for are part of our endowment." partnerships to grow. Another exports, except arms and "A reform, nearing completion, potential sector is tourism, which ammunition; and we also have will ensure that oil policies and has huge opportunities but the tariff-free entry into ECOWAS, our legislation comply with major constraint is infrastructure in regional institution. All of this gives international best practices, and terms of availability of water, power us a market that's more than partnership with the world's best and roads. She added that the L to R: Dr. Alex George, Director, Action Aid India; Prakash Michael, Spandan Samaj Sewa Samiti; Dr. Vandana Prasad, Member of twenty-five times our own size," operators who have the technical construction of basic infrastructure NCPCR & special invitee to the Governing Body of PHRS; Dr. Ashish Satav, Founder, Mahan Trust and Chinmay Sengupta, CEO, ICICI said Sirleaf. Foundation. and financial capacity to undertake is under way. n

28 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 29 Sachin Pilot offers to take up industry's demand Companies Act will lend clarity to doing for tax relief on CSR spends with Finance Ministry business in India: Sidharth Birla

he industry’s perspective on laws must not either micro-manage the Companies Act was or hamper business. For this legacy Tsuccinctly articulated by to sustain this spirit must be Sidharth Birla, Senior Vice President embedded so it is adhered to by of FICCI. future administrators. We also look Birla stated that the new Act to alignment of SEBI governance shakes people outside a comfort norms to the Act and suggest that zone of the old Act, but is it really MCA should be the driving force full of surprises? It was required to behind this. FICCI has mentioned to cover a range of businesses and SEBI the pressing need to align its issues not conceived in the old law. regulations with the Act,” he Emerging governance practices and remarked. challenges had to be captured in a Rule prescription and a contemporary version. In a longish systematic transition process are journey, industry greeted the JJ vital to the Act. A lot of attention Irani report, witnessed was given to the Rules process; delinquencies, faced a global MCA has also shown commendable financial crisis, and noticed laws patience with the constant barrage and attitudes transform across the FICCI keeps up with inputs! Draft Sachin Pilot, Union Minister for Corporate Affairs, addressing the FICCI-ICSI world; there should be no real Rules have been announced conference on the Companies Act, 2013 in New Delhi on September 12, 2013. surprises! All in all, fairly recently. A scientific transition implemented, the Act should add schedule will add to clarity. FICCI which is routine - and exercise of to clarity of doing business in India. has also suggested a mandated ownership rights - which is achin Pilot, Union Minister correctness of industry's demand some negatively," the Minister said, Some provisions embedded by Rule Advisory Committee so that infrequent. The system must have for Corporate Affairs, told for the alignment between rules adding that the Act is more the Standing Committee make future rule amendments or the discretion to distinguish so Scorporate leaders in New framed by SEBI and the Companies relevant now to face the economic parts of the Act contentious. But to prescriptions are not arbitrary. correct parties are held Delhi on September 12, 2013 that Act, Pilot felt that there was a need challenges as it will ease the MCA’s credit, it enabled intensive Section 149 protects independent accountable. “I believe the he would be happy to be their for the Finance Ministry, Ministry of burden of doing business and interactions which allowed a most directors from action based on Parliamentary committee also ambassador and take up with the Corporate Affairs, RBI and SEBI to attract the flow of funds into the informed, balanced and practically participation or knowledge tests; emphasised due care that the Finance Minister the demand for sit together to create a risk-free economy. possible approach while addressing yet it denies protection to non- innocent are safeguarded,” he incentivising CSR projects through environment to do business. S N Ananthasubramanian, most of the Committee’s concerns, executive Promoter Directors with added. tax exemption and reliefs. The Minister urged Indian President, ICSI, described the Act as he said. any reference to powers, In an anxiety to provide Pilot was addressing the FICCI- corporate sector to have faith in a flagship legislation, as it was The Act in essence emphasises knowledge or action. Law cannot enhanced protection for minority ICSI conference on the Companies investing in projects in India so that contemporary, transformative, accountability, sound governance, deny protection simply on a class investors, there are some conflicts Act, 2013 that received Presidential the foreign investors get the signal innovative and aspirational. These the fiduciary role of directors, and description. This matter needs with time-tested principles of assent on August 29 and was that India is a safe and profitable features which were central to the explicit recognition of a stakeholder much debate. majority rights. A majority must be notified on August 30, 2013. investment destination. Act would make India move higher universe. Birla said, “Reading it Promoter is now defined for the held accountable if there is a The Act enjoins on companies to On rule making, Pilot sought to in the league table in the ease of along with your vision of less first time in law - incidentally this is collateral agenda to hurt minority; invest two per cent of their net allay the apprehensions amongst doing business, he said. regulation but rigorous, honest peculiar to India. They are but there can be no logic or profit on socially, educationally, the business community, stating The inaugural session was also compliance can make life simpler. frequently subject to much media sanctity in forcing minority over environmentally and economically that this would be done with full addressed by Vijaya Sampath, There will always be elements who criticism and investor anger. Some majority. In essence, it is vital that beneficial activities especially in consultation with all stakeholders. Chairperson, FICCI's Corporate believe that following the law is promoters could have unduly noise does not drown reason. remote and underdeveloped areas The draft rules have been uploaded Laws Committee and Senior optional for them. Therefore we leveraged their managerial powers, Perhaps MCA and SEBI need to with a view to ameliorating the lot in the ministry's website for Partner, Lakshmi Kumaran & need strict enforcement without but that cannot be held against look at this issue objectively and in of the vulnerable and feedback, he added. Sridharan and Dr. A Didar Singh, which we will see new laws which their entire community. It is sync, before judicial challenge or a disadvantaged sections of society. "No legislation is sector-specific, Secretary General, FICCI. n will affect all for the sins of some.” necessary to distinguish between no-confidence vote by serious n While acknowledging the some will be positively affected and “Your ministry recognises that its exercise of managerial power - investors hurts us.

30 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 31 Sachin Pilot offers to take up industry's demand Companies Act will lend clarity to doing for tax relief on CSR spends with Finance Ministry business in India: Sidharth Birla

30 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 31 New sectors continued to spring the fenland Plateau des A Constitutional Monarchy up throughout the 20th century Fagnes, the North Sea coast, following the arrival in Belgium of cycling, horse-riding and leading corporate groups in a boating, golf, theme parks, As Belgium is a constitutional variety of sectors including castles and estates, monarchy, the latter's role is defined petrochemicals, pharmaceuticals, international fairs and biotechnology, nanoelectronics, exhibitions, antiques fairs and and enshrined in the Constitution. The automobile manufacturing and flea markets. head of state is the King, who is the King of the Belgians. The Constitution household goods, among others. Belgium offers an incredibly lays down the King's legal status and Activity in these new sectors has diverse range of tourist the hereditary succession. In the event long ensured considerable socio- attractions, particularly for economic diversity in Belgium and such a small country: there is of a succession, the King's in so doing has promoted the something for everyone - and constitutional authority is passed on to growth of subcontracting and an it's never very far away! the natural and legal direct descendant. efficient service sector offering On July 21, 2013, King Philippe took Lifestyle is of high quality in substantial added value. power after he solemnly took a Belgium. Our country is Following in its own footsteps as famous for its chocolate, beer constitutional oath during a joint the first country in Continental meeting of the Chamber of © OPT - J.P. Remy and gastronomy. Belgian Europe to embrace the industrial fashion and design have Representatives and the Senate. This revolution, Belgium has made the become internationally happened after his predecessor, King elgium is located at the most of its geographical location as recognized. Albert II, announced his abdication on a gateway to its key neighbours interface of the major Folklore and traditions July 3, 2013. European hubs of economic and at the very heart of all Europe's B your gateway to Europe All manner of popular Belgium is a federal state made up of and urban activity and the world's markets. celebrations take place in three communities, the French, the primary seaboard, the North Sea. It Leisure Belgium throughout the year, Flemish and the German-speaking lies not only within one of the most position on the European and associated with the mining and In addition to its countless including carnivals, marching community, and three regions: the populous and trade-intensive international stage. processing of its underground popular festivals, packed cultural bands, processions, historical Brussels-Capital Region at the centre, regions on the planet but also calendar, rich and impressive which is officially bilingual, the Flemish The country boasts of resources. However, the country re-enactments, country fairs along a key economic and urban artistic heritage and tasty cuisine, considerable expertise in a wide succeeded in making a smooth and commemorative events. Region to the north, which is Dutch- axis. Belgium also offers a great deal in range of fields - expertise which entry into other key industrial Many such events are inspired speaking and the Walloon Region to Blessed with a salubrious climate, the way of leisure pursuits, has largely been the driving force sectors, paving the way for and by the collective memory in the south, which is French and German- bountiful natural resources, rapidly including walking trails through the behind its success. Industrial promoting economic growth in different areas and regions. speaking. expanding sectors and a central forests of the Ardennes and across activity in Belgium originally Europe. Fine art is the perfect The main federal institutions are the location, Belgium enjoys a key centered on heavy industry Federal Government and the Federal Parliament. A treasure trove of contrasts his year Belgium is is truly impressive. It illustrates the Mumbai and Chennai. We will take this opportunity to sign Memoranda Message celebrating 65 years of importance of the India-Belgium of Understanding, organise business-to-business forums, political high- The main features of Flanders with its Tdiplomatic relations with relationship. level dialogues and officially announce the opening of the Consulate flat landscape are its cities and ports. India. Today, India is set to become The 13th bilateral joint economic General in Chennai. During the mission, an exhibition of the most Wallonia, meanwhile, is a region of hills a major political and economic commission between India and famous Flemish masters will take place in Mumbai. and valleys, the most famous area global player. Our bilateral trade Belgium-Luxembourg took place in Also, the 2013 edition of Europalia will be devoted to India. It is a being the Ardennes to the south with with India reflects this new state of Brussels July 2013. We reviewed the cultural festival that takes place every two years, which showcases the its outstanding natural beauty and the world, as we are India's second existing cooperation and are looking culture of the guest country during four months with hundreds of events. considerable appeal as a tourist European trade partner, with a for ways to launch concrete Europalia will be opened by HM King Philippe and Pranab Mukherjee, destination. turnover of 12.16 billion Euros in initiatives in business cooperation, President of India, on October 4, 2013. Most towns in Belgium are extremely 2012 (15.80 billion USD). It may be S&T cooperation and skills I am also very pleased to see more and more contacts and initiatives in old, with some such as Tongeren and useful to remember that the development in sectors of mutual the field of academic and scientific cooperation. Arlon dating back over 2,000 years to European Union (EU), with a figure interest. Roman times. Cities such as Bruges and of 100 billions, is the first trade Taking into account all these economic, cultural and education A new Princely Mission will come to partner of India. In this context, the exchanges, I look forward to a growing partnership between our two Ypres were some of Europe's largest India in November 2013. The Belgian position is undoubtedly countries. settlements during the Middle Ages delegation of over 250 businessmen significant. Welcome to Belgium! and Ghent, Brussels, Antwerp and Liege and officials will be led by HRH are also renowned artistic centers. Belgium Ambassador, Mr. Pierre Vaesen The bilateral agenda with Belgium Princess Astrid and visit Delhi,

32 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 33 New sectors continued to spring the fenland Plateau des A Constitutional Monarchy up throughout the 20th century Fagnes, the North Sea coast, following the arrival in Belgium of cycling, horse-riding and leading corporate groups in a boating, golf, theme parks, As Belgium is a constitutional variety of sectors including castles and estates, monarchy, the latter's role is defined petrochemicals, pharmaceuticals, international fairs and biotechnology, nanoelectronics, exhibitions, antiques fairs and and enshrined in the Constitution. The automobile manufacturing and flea markets. head of state is the King, who is the King of the Belgians. The Constitution household goods, among others. Belgium offers an incredibly lays down the King's legal status and Activity in these new sectors has diverse range of tourist the hereditary succession. In the event long ensured considerable socio- attractions, particularly for economic diversity in Belgium and such a small country: there is of a succession, the King's in so doing has promoted the something for everyone - and constitutional authority is passed on to growth of subcontracting and an it's never very far away! the natural and legal direct descendant. efficient service sector offering On July 21, 2013, King Philippe took Lifestyle is of high quality in substantial added value. power after he solemnly took a Belgium. Our country is Following in its own footsteps as famous for its chocolate, beer constitutional oath during a joint the first country in Continental meeting of the Chamber of © OPT - J.P. Remy and gastronomy. Belgian Europe to embrace the industrial fashion and design have Representatives and the Senate. This revolution, Belgium has made the become internationally happened after his predecessor, King elgium is located at the most of its geographical location as recognized. Albert II, announced his abdication on a gateway to its key neighbours interface of the major Folklore and traditions July 3, 2013. European hubs of economic and at the very heart of all Europe's B your gateway to Europe All manner of popular Belgium is a federal state made up of and urban activity and the world's markets. celebrations take place in three communities, the French, the primary seaboard, the North Sea. It Leisure Belgium throughout the year, Flemish and the German-speaking lies not only within one of the most position on the European and associated with the mining and In addition to its countless including carnivals, marching community, and three regions: the populous and trade-intensive international stage. processing of its underground popular festivals, packed cultural bands, processions, historical Brussels-Capital Region at the centre, regions on the planet but also calendar, rich and impressive which is officially bilingual, the Flemish The country boasts of resources. However, the country re-enactments, country fairs along a key economic and urban artistic heritage and tasty cuisine, considerable expertise in a wide succeeded in making a smooth and commemorative events. Region to the north, which is Dutch- axis. Belgium also offers a great deal in range of fields - expertise which entry into other key industrial Many such events are inspired speaking and the Walloon Region to Blessed with a salubrious climate, the way of leisure pursuits, has largely been the driving force sectors, paving the way for and by the collective memory in the south, which is French and German- bountiful natural resources, rapidly including walking trails through the behind its success. Industrial promoting economic growth in different areas and regions. speaking. expanding sectors and a central forests of the Ardennes and across activity in Belgium originally Europe. Fine art is the perfect The main federal institutions are the location, Belgium enjoys a key centered on heavy industry Federal Government and the Federal Parliament. A treasure trove of contrasts his year Belgium is is truly impressive. It illustrates the Mumbai and Chennai. We will take this opportunity to sign Memoranda Message celebrating 65 years of importance of the India-Belgium of Understanding, organise business-to-business forums, political high- The main features of Flanders with its Tdiplomatic relations with relationship. level dialogues and officially announce the opening of the Consulate flat landscape are its cities and ports. India. Today, India is set to become The 13th bilateral joint economic General in Chennai. During the mission, an exhibition of the most Wallonia, meanwhile, is a region of hills a major political and economic commission between India and famous Flemish masters will take place in Mumbai. and valleys, the most famous area global player. Our bilateral trade Belgium-Luxembourg took place in Also, the 2013 edition of Europalia will be devoted to India. It is a being the Ardennes to the south with with India reflects this new state of Brussels July 2013. We reviewed the cultural festival that takes place every two years, which showcases the its outstanding natural beauty and the world, as we are India's second existing cooperation and are looking culture of the guest country during four months with hundreds of events. considerable appeal as a tourist European trade partner, with a for ways to launch concrete Europalia will be opened by HM King Philippe and Pranab Mukherjee, destination. turnover of 12.16 billion Euros in initiatives in business cooperation, President of India, on October 4, 2013. Most towns in Belgium are extremely 2012 (15.80 billion USD). It may be S&T cooperation and skills I am also very pleased to see more and more contacts and initiatives in old, with some such as Tongeren and useful to remember that the development in sectors of mutual the field of academic and scientific cooperation. Arlon dating back over 2,000 years to European Union (EU), with a figure interest. Roman times. Cities such as Bruges and of 100 billions, is the first trade Taking into account all these economic, cultural and education A new Princely Mission will come to partner of India. In this context, the exchanges, I look forward to a growing partnership between our two Ypres were some of Europe's largest India in November 2013. The Belgian position is undoubtedly countries. settlements during the Middle Ages delegation of over 250 businessmen significant. Welcome to Belgium! and Ghent, Brussels, Antwerp and Liege and officials will be led by HRH are also renowned artistic centers. Belgium Ambassador, Mr. Pierre Vaesen The bilateral agenda with Belgium Princess Astrid and visit Delhi,

32 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 33 admired today in many art cities amal Nath, Union Minister of density generated by large cities. systems, as well as high speed rail A fountainhead of creative talent across the country. Countless Urban Development and He said, transportation is critical and Rapid Transportation Systems castles are to be found dotted all Parliamentary Affairs, of the future." Belgium is a country that and Antoon Van Dyck - to mention K to India's economic growth, and a over the Belgian countryside and suggested initiation of a pilot abounds in creative talent. John just a few of the Flemish masters - clean energy solution that provides Dr. Sudhir Krishna, Secretary, come the 20th century, the city of project on tramways integrated Cockerill supplied customers all rose to prominence in the land that smart mobility in our urban areas Ministry of Urban Development, Brussels became synonymous with with the transport systems in a over the world with steam would one day become Belgium. and allows freight to move easily is Government of India, said that the Art Nouveau movement. All of medium-sized city. After a locomotives, steamboats, trams, Their paintings are to be found all essential. Tramways' new rapid partnering with France in the space these buildings have helped to successful trial, tramways should be blast furnaces and other heavy over the world but some of their transit system can be used for of urban transportation will help define the country's incredible introduced in tier II cities and industrial equipment. The dynamo, finest works are on display in a moving people or freight. It is India to develop its transport wealth of architectural triumphs. connected with major bus and rail soda and Bakelite, and many other number of Belgium's museums. electrically powered, fully system which is an important stations. practical applications were all James Ensor, Félicien Rops, Théo Fine arts, folklore, fashion, automated (driverless) and component for growth. Tramways invented by Belgians or people of Van Rysselberghe, Paul Delvaux and design… Reflections of the past or Addressing an Indo-French operates using intelligent drive are not new to India, but it has Belgian origin, and today's rapidly René Magritte are also future trends, these are all areas seminar on 'Sustainable Cities - bogies traveling inside a fixed been neglected in the past. With evolving industry is continuing this internationally famous Belgian where Belgian talent holds sway. Next Generation Tramways guide way. the assistance of French experts, And of course Belgians really tradition. artists. Solutions' organised by FICCI in Nath said, "I personally feel, tramways of Kolkata can be appreciate top cuisine, relishing the Such well-known artists as Peter During the Middle Ages, association with the Ministry of guide way support construction rejuvenated and can be introduced country's mouth-watering and Paul Rubens, Pieter Bruegel, Jan cathedrals and belfries sprang up Urban Development Government of projects are fast and inexpensive, in other parts of India. long-standing culinary traditions. Van Eyck, Rogier Van der Weyden all over Belgium and can still be India and Embassy of France in minimising neighbourhood Paul Hermelin, the French Special New Delhi on September 9, 2013, disruption in comparison to any at- Envoy for Bilateral Economic Nath said, a tramway model grade rail system. Operating costs Relationship, said that in 1998 India integrates well and connects the are lower than for buses. A tram and France had entered into areas within city and intercity where system will provide easy strategic partnership and Metro, BRT and Monorail cannot interoperability with first-mile/last- development of urban go. Tramways allow towns to mile modes such as bikes and transportation is at the fore front of capture the economic impulse and walking, existing transportation this partnership. Tramway doesn't require high-end technology, the functional cost is lower than buses and has a higher carrying capacity than a bus, he said. KamKamal Nath,al Union Na Ministerth of Urban sugg ests Sidharth Birla, Senior Vice- Development and Parliamentary Affairs President, FICCI, said that the (right) with Mr. Sidharth Birla, Senior Vice- growth and future of our cities and testPresident, d FICCI.rive of tramways in a emerging towns hinges on how policy makers, town planners and medium-sized Indian city tax payers collaborate towards sustainable and meaningful to gauge its efficacy solutions to the needs of urban infrastructure. The development of Lto R : Anand Sharma, India's Minister of Commerce and Industry; Crown Prince Philippe and Naina Lal Kidwai, President, FICCI. modern cities the world over shows how critical it is to have a forward looking vision and framework, he showcase of Belgium at its best. the world, as do those by more architecture, as is industrial art. added. Pieter Bruegel the Elder was one of recent Belgian painters such as the Mention should also be made of Dr. A Didar Singh, Secretary the greatest artists the world has brilliant Paul Delvaux and René the present-day Belgian post- General, FICCI, said that the French ever known and the adjective Magritte, the standard bearers for modernist architects, Bob Van companies have shown interest in 'Brueghelian' is a virtual synonym Belgian surrealism. Reeth, Jo Crepain and Stéphane developing tramways as a viable for 'Burgundian', both terms being Victor Horta, Henry Van de Velde Beel, presenting the New Simplicity. intra-urban transport solution for closely linked to the adjective and others transformed Brussels The prestigious architectural works Indian cities. FICCI is fully 'Belgian'. into the capital of Art Nouveau by include the MAS (Museum aan de committed in extending its Magnificent works by the so- building magnificent yet Stroom) in Antwerp, Antwerp cooperation in realising the goals called Flemish Primitives, namely completely habitable houses in the Central Station and the Liege- in the times ahead. n the Van Eyck brothers, Rogier Van art deco style. 'Belgians are born Guillemins Station. n der Weyden, Hugo Van der Goes, with a brick in their stomach' as the Texts provided by The Chancellery of Kamal Nath, Union Minister of Urban Development and Parliamentary Affairs Hans Memling and Jeroen Bosch saying goes. Art Deco, too, is a the Prime Minister of Belgium today, hang in museums all over striking feature of Brussels' (right) with Sidharth Birla, Senior Vice-President, FICCI.

34 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 35 admired today in many art cities amal Nath, Union Minister of density generated by large cities. systems, as well as high speed rail A fountainhead of creative talent across the country. Countless Urban Development and He said, transportation is critical and Rapid Transportation Systems castles are to be found dotted all Parliamentary Affairs, of the future." Belgium is a country that and Antoon Van Dyck - to mention K to India's economic growth, and a over the Belgian countryside and suggested initiation of a pilot abounds in creative talent. John just a few of the Flemish masters - clean energy solution that provides Dr. Sudhir Krishna, Secretary, come the 20th century, the city of project on tramways integrated Cockerill supplied customers all rose to prominence in the land that smart mobility in our urban areas Ministry of Urban Development, Brussels became synonymous with with the transport systems in a over the world with steam would one day become Belgium. and allows freight to move easily is Government of India, said that the Art Nouveau movement. All of medium-sized city. After a locomotives, steamboats, trams, Their paintings are to be found all essential. Tramways' new rapid partnering with France in the space these buildings have helped to successful trial, tramways should be blast furnaces and other heavy over the world but some of their transit system can be used for of urban transportation will help define the country's incredible introduced in tier II cities and industrial equipment. The dynamo, finest works are on display in a moving people or freight. It is India to develop its transport wealth of architectural triumphs. connected with major bus and rail soda and Bakelite, and many other number of Belgium's museums. electrically powered, fully system which is an important stations. practical applications were all James Ensor, Félicien Rops, Théo Fine arts, folklore, fashion, automated (driverless) and component for growth. Tramways invented by Belgians or people of Van Rysselberghe, Paul Delvaux and design… Reflections of the past or Addressing an Indo-French operates using intelligent drive are not new to India, but it has Belgian origin, and today's rapidly René Magritte are also future trends, these are all areas seminar on 'Sustainable Cities - bogies traveling inside a fixed been neglected in the past. With evolving industry is continuing this internationally famous Belgian where Belgian talent holds sway. Next Generation Tramways guide way. the assistance of French experts, And of course Belgians really tradition. artists. Solutions' organised by FICCI in Nath said, "I personally feel, tramways of Kolkata can be appreciate top cuisine, relishing the Such well-known artists as Peter During the Middle Ages, association with the Ministry of guide way support construction rejuvenated and can be introduced country's mouth-watering and Paul Rubens, Pieter Bruegel, Jan cathedrals and belfries sprang up Urban Development Government of projects are fast and inexpensive, in other parts of India. long-standing culinary traditions. Van Eyck, Rogier Van der Weyden all over Belgium and can still be India and Embassy of France in minimising neighbourhood Paul Hermelin, the French Special New Delhi on September 9, 2013, disruption in comparison to any at- Envoy for Bilateral Economic Nath said, a tramway model grade rail system. Operating costs Relationship, said that in 1998 India integrates well and connects the are lower than for buses. A tram and France had entered into areas within city and intercity where system will provide easy strategic partnership and Metro, BRT and Monorail cannot interoperability with first-mile/last- development of urban go. Tramways allow towns to mile modes such as bikes and transportation is at the fore front of capture the economic impulse and walking, existing transportation this partnership. Tramway doesn't require high-end technology, the functional cost is lower than buses and has a higher carrying capacity than a bus, he said. KamKamal Nath,al Union Na Ministerth of Urban sugg ests Sidharth Birla, Senior Vice- Development and Parliamentary Affairs President, FICCI, said that the (right) with Mr. Sidharth Birla, Senior Vice- growth and future of our cities and testPresident, d FICCI.rive of tramways in a emerging towns hinges on how policy makers, town planners and medium-sized Indian city tax payers collaborate towards sustainable and meaningful to gauge its efficacy solutions to the needs of urban infrastructure. The development of Lto R : Anand Sharma, India's Minister of Commerce and Industry; Crown Prince Philippe and Naina Lal Kidwai, President, FICCI. modern cities the world over shows how critical it is to have a forward looking vision and framework, he showcase of Belgium at its best. the world, as do those by more architecture, as is industrial art. added. Pieter Bruegel the Elder was one of recent Belgian painters such as the Mention should also be made of Dr. A Didar Singh, Secretary the greatest artists the world has brilliant Paul Delvaux and René the present-day Belgian post- General, FICCI, said that the French ever known and the adjective Magritte, the standard bearers for modernist architects, Bob Van companies have shown interest in 'Brueghelian' is a virtual synonym Belgian surrealism. Reeth, Jo Crepain and Stéphane developing tramways as a viable for 'Burgundian', both terms being Victor Horta, Henry Van de Velde Beel, presenting the New Simplicity. intra-urban transport solution for closely linked to the adjective and others transformed Brussels The prestigious architectural works Indian cities. FICCI is fully 'Belgian'. into the capital of Art Nouveau by include the MAS (Museum aan de committed in extending its Magnificent works by the so- building magnificent yet Stroom) in Antwerp, Antwerp cooperation in realising the goals called Flemish Primitives, namely completely habitable houses in the Central Station and the Liege- in the times ahead. n the Van Eyck brothers, Rogier Van art deco style. 'Belgians are born Guillemins Station. n der Weyden, Hugo Van der Goes, with a brick in their stomach' as the Texts provided by The Chancellery of Kamal Nath, Union Minister of Urban Development and Parliamentary Affairs Hans Memling and Jeroen Bosch saying goes. Art Deco, too, is a the Prime Minister of Belgium today, hang in museums all over striking feature of Brussels' (right) with Sidharth Birla, Senior Vice-President, FICCI.

34 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 35 Some of the key decisions arrived at the BRICS he first meeting of the BRICS First is the dim prospects of to reach $500 billion by 2015. by hosting specialised trade fairs in Business Council which global growth which is projected to Business Council to enhance cooperation Given these imperatives, some of sectors such as agriculture and Tconcluded on August 20 in remain subdued at slightly above the key decisions arrived at the engineering. include working with governments for issue of Johannesburg saw the leadership three per cent in 2013, the same as BRICS Business Council to enhance Members of the BRICS Business and businesses of the five in 2012. This is less than forecasted multiple-entry business visas for longer cooperation include working with Council also decided to take steps emerging economies (Brazil, Russia, in April 2013 by the IMF, driven to governments for issue of multiple- to deepen economic engagement periods to ease travel for business people India, China and South Africa) set a large extent by appreciably entry business visas for longer with Africa keeping an eye on their within the bloc; promoting the idea of creation the ball rolling on creation and weaker domestic demand, slower periods to ease travel for business development needs. strengthening of linkages at the growth in several key emerging people within the bloc; promoting of a BRICS business travel card and working Members of both the BRICS business level to drive the trade market economies and a more the idea of creation of a BRICS towards creation of an information exchange grouping as well as the African and investment agenda. The protracted recession in the Euro business travel card and working region face an acute challenge of platform – a BRICS business portal – that will Business Council was launched in area. towards creation of an information developing the infrastructure March this year in Durban. Second is the enduring strength exchange platform - a BRICS enable businesses to access information on sector in their respective countries. There are three compelling of the grouping which they can ill business portal - that will enable trade and investment opportunities across Development of infrastructure can reasons at this juncture for the afford to squander at a time when businesses to access information be an important driver of growth countries. BRICS to push beyond outlines and their performance holds forth on trade and investment and with this in mind, the BRICS contours of their growth agenda optimism amidst the lingering opportunities across countries. Business Council agreed to and focus on concrete deliverables slowdown. The BRICS countries Some of the other areas for promote public-private and achievements. account for 43 per cent of the promoting cooperation that partnerships among the five emerging economies and collaborate in exploring a number of 'tangible projects' such as India's North-South BRICS gets down to business amidst lingering global slowdown Corridor projects comprising large-scale transport, energy and water projects. Members were also keen to jointly promote Africa's world's population, around 20 per emanated during discussions at this infrastructure and construction cent of its GDP and 40 per cent of meeting included investment sector. The idea to jointly its currency reserves. In 2011, total facilitation for joint ventures, participate in major African trade of the BRICS grouping setting up of special economic transnational projects including amounted to US$ 5.8 trillion zones and dedicated industrial those proposed by the G-20, the representing 17 per cent of the clusters for economic value African Union and sub-regional global trade. Though some of the addition in each other's country organisations can turn them into a BRICS nations are grappling with and even in Africa, promoting driving force for deepening problems in their economies, China dialogue on energy security economic integration and continues to demonstrate high through a BRICS hydrocarbons improving people's livelihoods in rates of economic growth, India is forum and encouraging direct Africa, resonated at this meeting. n showing a reasonable five per cent business-to-business interactions growth and the other three - Brazil, Russia and South Africa - too are showing convincing results. Some of the other areas for promoting cooperation Third is that Africa with its include investment facilitation for joint ventures, untapped potential and growing setting up of special economic zones and dedicated economic prowess has emerged as industrial clusters for economic value addition in each an asset which the BRICS need to cultivate. The BRICS-Africa other's country and even in Africa, promoting dialogue Onkar Kanwar, Chair, India-BRICS Business Council & CMD, Apollo Tyres Ltd. partnership has only got stronger. on energy security through a BRICS hydrocarbons (second from right) with the President of South Africa, Jacob Zuma (second from left) and Dr. Rob Davis, Minister of Trade and Industry, South Africa (extreme left), Africa's trade with BRICS has grown forum and encouraging direct business-to-business at the BRICS Business Council Meeting in Johannesburg. faster than with any other region in interactions by hosting specialised trade fairs in sectors the world, doubling since 2007 to $340 billion in 2012, and projected such as agriculture and engineering.

36 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 37 Some of the key decisions arrived at the BRICS he first meeting of the BRICS First is the dim prospects of to reach $500 billion by 2015. by hosting specialised trade fairs in Business Council which global growth which is projected to Business Council to enhance cooperation Given these imperatives, some of sectors such as agriculture and Tconcluded on August 20 in remain subdued at slightly above the key decisions arrived at the engineering. include working with governments for issue of Johannesburg saw the leadership three per cent in 2013, the same as BRICS Business Council to enhance Members of the BRICS Business and businesses of the five in 2012. This is less than forecasted multiple-entry business visas for longer cooperation include working with Council also decided to take steps emerging economies (Brazil, Russia, in April 2013 by the IMF, driven to governments for issue of multiple- to deepen economic engagement periods to ease travel for business people India, China and South Africa) set a large extent by appreciably entry business visas for longer with Africa keeping an eye on their within the bloc; promoting the idea of creation the ball rolling on creation and weaker domestic demand, slower periods to ease travel for business development needs. strengthening of linkages at the growth in several key emerging people within the bloc; promoting of a BRICS business travel card and working Members of both the BRICS business level to drive the trade market economies and a more the idea of creation of a BRICS towards creation of an information exchange grouping as well as the African and investment agenda. The protracted recession in the Euro business travel card and working region face an acute challenge of platform – a BRICS business portal – that will Business Council was launched in area. towards creation of an information developing the infrastructure March this year in Durban. Second is the enduring strength exchange platform - a BRICS enable businesses to access information on sector in their respective countries. There are three compelling of the grouping which they can ill business portal - that will enable trade and investment opportunities across Development of infrastructure can reasons at this juncture for the afford to squander at a time when businesses to access information be an important driver of growth countries. BRICS to push beyond outlines and their performance holds forth on trade and investment and with this in mind, the BRICS contours of their growth agenda optimism amidst the lingering opportunities across countries. Business Council agreed to and focus on concrete deliverables slowdown. The BRICS countries Some of the other areas for promote public-private and achievements. account for 43 per cent of the promoting cooperation that partnerships among the five emerging economies and collaborate in exploring a number of 'tangible projects' such as India's North-South BRICS gets down to business amidst lingering global slowdown Corridor projects comprising large-scale transport, energy and water projects. Members were also keen to jointly promote Africa's world's population, around 20 per emanated during discussions at this infrastructure and construction cent of its GDP and 40 per cent of meeting included investment sector. The idea to jointly its currency reserves. In 2011, total facilitation for joint ventures, participate in major African trade of the BRICS grouping setting up of special economic transnational projects including amounted to US$ 5.8 trillion zones and dedicated industrial those proposed by the G-20, the representing 17 per cent of the clusters for economic value African Union and sub-regional global trade. Though some of the addition in each other's country organisations can turn them into a BRICS nations are grappling with and even in Africa, promoting driving force for deepening problems in their economies, China dialogue on energy security economic integration and continues to demonstrate high through a BRICS hydrocarbons improving people's livelihoods in rates of economic growth, India is forum and encouraging direct Africa, resonated at this meeting. n showing a reasonable five per cent business-to-business interactions growth and the other three - Brazil, Russia and South Africa - too are showing convincing results. Some of the other areas for promoting cooperation Third is that Africa with its include investment facilitation for joint ventures, untapped potential and growing setting up of special economic zones and dedicated economic prowess has emerged as industrial clusters for economic value addition in each an asset which the BRICS need to cultivate. The BRICS-Africa other's country and even in Africa, promoting dialogue Onkar Kanwar, Chair, India-BRICS Business Council & CMD, Apollo Tyres Ltd. partnership has only got stronger. on energy security through a BRICS hydrocarbons (second from right) with the President of South Africa, Jacob Zuma (second from left) and Dr. Rob Davis, Minister of Trade and Industry, South Africa (extreme left), Africa's trade with BRICS has grown forum and encouraging direct business-to-business at the BRICS Business Council Meeting in Johannesburg. faster than with any other region in interactions by hosting specialised trade fairs in sectors the world, doubling since 2007 to $340 billion in 2012, and projected such as agriculture and engineering.

36 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 37 Message

It is with great pleasure I welcome you in this issue of Business Digest of Federation of Indian Chambers of Commerce and Industry. Hungary and India have been historically connected over the last centuries. We have much in common though size and geographic location make us apart. Cherishing the memories of our great sons and daughters who contributed to this finely interwoven net of relations between our peoples and nations such as the polymath, Rabindranath Tagore, the modernist painter Amrita Shergil, or the founder of Tibetology, Alexander Csoma de Körös, brings us together and make us relaxed to understand each other now. These figures of Foreign capital is, in a large part, investment, raising the total finance joint science and common history shaped the friendly relations of the two nations based on mutual respect attracted by the highly skilled and Hungarian FDI portfolio to EUR technology projects mutually for traditions. highly educated labour force, 75.4 billion. identified for co-funding by each Economic relations between the two countries in the 21st century have been adding special particularly in the engineering, IT, Hungarian Investment and Trade Government's relevant value to this friendship and became part of the cause of the tremendous interactions pharmaceutical, economics, Agency subordinated agencies. The amongst our peoples and businesses. Over times both countries became frontrunners of mathematics, physics and allocable budget of the Indo- Dr. János Terényi, The Hungarian Investment and Ambassador of Hungary change in their own region, India prides herself being amongst the fastest growing professional services sectors. High Hungarian Strategic Research Fund Trade Agency (HITA) was economies of the world. As the largest democracy, your country is unanimous with peaceful English proficiency (90% of is EUR 1 million per year. established by the Government to development and respect for other cultures and beliefs around the globe. students speak English) and high promote the export activities of There has been a widespread number of working hours per year This is the very basis on which the Government of Prime Minister Viktor Orbán of Hungary Hungarian SMEs and to encourage consensus that the Fund needed to make Hungarians a highly efficient considers India a strategic partner. Hungary closely follows the remarkable change Asia foreign businesses to invest in be operated effectively. Only workforce. brings about. In this vein the Primes Minister has personally been engaged to turn to the Hungary. HITA organises more than successful and forward-looking East as the new foreign policy strategy of Hungary so captures the essence of our The Hungarian Government is 200 promotional programme in a joint projects representing high commitment to the region, with giving special prominence to India. The upcoming state committed to easing the year to achieve these goals. The professional standards should visit of Prime Minister Viktor Orbán along with a sizeable delegation of representatives of functioning of business and Agency has 63 representatives in 50 collaboratively be accomplished by the Hungarian business community marks the ever intensifying bilateral ties and the increasing the competitiveness of countries and 15 regional offices in researchers of the two countries. special importance trade relations have played over the last couple of years. both SMEs and large enterprises in Hungary. In India they have an One of the most suitable means FICCI has been a steadfast and trustworthy partner in furthering Indo-Hungarian relations, Hungary. The focus is on high value office in New Delhi. of tapping the full potential of added activities, like Centres of and displaying invaluable engagement in advancing our mutually beneficial cause. On this HITA provides large scale of Indo-Hungarian science and Excellence, research and note I am pleased to share with you a brief overview of Hungary. services to the potential investors technology cooperation, as development, high value added such as one-stop system for included in the bilaterally invited production. information for foreign investors, calls for proposals upon joint As a member of the European information on the Hungarian science and technology projects, Hungary, Union, Hungary can offer a broad investment incentive and support present itself in the form of scale of subsidies for the potential programmes, meetings and conducting applied research aimed investors. The Hungarian consultations with the central and at the development of competitive an investment destination few can afford to ignore Investment and Trade Agency (HITA local government officials, logistic and marketable products and - www.hita.hu) is at the disposal of assistance during the site selection services in the following areas: the Indian companies to provide process, identification of the local vInformation and communication tailor-made information about the ungary, located in the system. suppliers, HR resources etc. technologies best incentive solutions for them. In At the moment HITA is managing vEarth sciences heart of Europe, has What's more, Hungary offers case of investments that exceed nearly 100 potential investment v Hemerged as a highly access to a market of 250 million EUR 10 million HITA provides VIP Biological sciences projects, which also includes Indian rewarding investment destination. people within a 1000 km radius, status for the investor. vHealthcare industry The reasons are not far to seek. Its and the EU common market companies, in the field of shared The investments of the foreign vGreen chemistry geographical location is ideally consists of more than 500 million service centres and electronics. The companies and the continuous vNanotechnology ad the suited for manufacturing, services people. With labour costs roughly total investment value of these reinvestments of the local ones development of new materials and logistics; it has excellent 60 per cent than the rest of the projects reach over EUR 2.2 billion indicate that Hungary is infrastructure, ready-made European economies, Hungary is with possible creation of more than vDefence industry competitive regarding both the the ideal base for investors who are 14800 new jobs. v industrial sites, offices and science business environment and the Space research planning business developments, Indo-Hungarian Strategic parks, a good balance of labour incentive system. In 2012 a total of vOptics and laser physics costs and quality, an investment- including those coming from Research Fund EUR 3 billion flowed into Hungary vWater treatment and purification friendly economic policy and a distant countries and wishing to The Fund has been destined, in the way of foreign direct vAgriculture n competitive tax and incentive seize European markets. since its establishment in 2008, to

38 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 39 Message

38 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 39 Uttarakhand Task Force 'Harness new technologies to meet aspirations of consumers'

Dignitaries at the 'PubliCon 2013'. Indian publishing industry reaching out to African and South Asian nations

he National Book Trust (NBT) as e-publishing is an important collaborations. African nations and is actively engaging with the source of revenue,” she added. India would benefit from Tpublishing industry to reach Tokunbo Falohun, Minister, leveraging India as a publishing unexplored markets such as Africa Nigeria High Commission, said that hub for all publishing services.” and South Asia. It is looking for Africa offers Indian publishing an Urvashi Butalia, Chairperson, long term investment opportunities excellent opportunity to export FICCI Publishing Committee and in the publishing sector under school and higher academic Director, Zubaan, said a large India-Africa Forum. content to the African continent. Indian Diaspora is based out of This was stated by M A Sikandar, India publishes books of African countries and now African Director, NBT, Ministry of Human international standard, and is authors are well-known in India. Resource Development, comparatively cheaper than their Hence, Africa is a lucrative market Government of India, at ‘PubliCon Western counterparts. This offers a for Indian publishing industry. India 2013’ organised by FICCI on the good option to scale export of and Africa are both emerging theme ‘Export Markets’ with special books to African countries. economies and have similar issues focus on Africa and South Asia, in Rohit Kumar, Managing Director - which will help them better New Delhi on September 10, 2013. South Asia, Reed Elsevier India Pvt. understand each other and Sikandar called for leveraging Ltd., said, “We have the experience develop an egalitarian relationship. India’s strength in publishing as a country to produce low cost, Himanshu Gupta, Co-chair, FICCI academic books in English and said affordable content that is relevant Publishing Committee and Joint NBT’s key mandate is to promote to local markets hence this is a Managing Director, S. Chand Indian publishing industry both in natural extension of our historical Group, said that India produces the country and overseas. publishing materials at one-tenth Ira Joshi, Additional Director of the cost incurred by the US and General, Publications Division, Africa offers Indian the UK publishing sector. Africa and Ministry of Information and publishing an excellent South Asia are markets where Broadcasting, Government of India, opportunity to export Indian publishers have shown great said that with the advent of new interest for export of educational technology, e-publishing and e- school and higher content. India, publishing has a lot marketing are rapidly gaining a academic content to the to offer in terms of new ideas and n foothold. “We need to leverage this African continent. innovative concepts. new technology to our advantage

40 n FICCI Business Digest n September 2013 SeptemberAugust 2013 n FICCI Business Digest n 2741 Uttarakhand Task Force 'Harness new technologies to meet aspirations of consumers'

Dignitaries at the 'PubliCon 2013'. Indian publishing industry reaching out to African and South Asian nations

40 n FICCI Business Digest n September 2013 SeptemberAugust 2013 n FICCI Business Digest n 2741 MEMBER SERVICES & COMMUNICATION TOOLS

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FICCI Knowledge Papers FICCI's Voice – Prithviraj Chavan, Chief Minister of Secretary General's Desk Maharashtra, flanked by Naina Lal Kidwai, President, FICCI (right) and A series of reports and studies carried out A compilation of issues where we have Sidharth Birla, Senior Vice-President, by FICCI's various verticals. These represented FICCI in different FICCI. reports can be downloaded from the URL consultative mechanisms in the policy embedded at the end of each report domain and through media Maharashtra's mega project policy

• MANUFACTURING MANDATE sees investment flowing in: Chavan FICCI unveiled its twelve point ‘Manufacturing Mandate’ with a focus on job creation and skill development. President FICCI, appealed to the Government that the magnitude of the task ahead of us is enormous and we need to prioritize policies and measures which would ensure that manufacturing rebounds and creates jobs for the millions who are going to join the labour force in the next ten to fifteen years. FICCI’s Twelve Point Manufacturing Mandate suggests a 10% manufacturing growth on a long term basis with a potential to create 67 million jobs in manufacturing directly, provided some pro‐active labour market policies are implemented as suggested in the mandate. With 10% manufacturing growth, we can achieve a size of $950 billion by 2025 from the current size of $ 250 billion for our manufacturing sector and take the total employment in manufacturing to 115 million during the period. While, this remains short of the targeted additional employment of 100 million by 2025 as per the National Manufacturing Policy this would be more realistic given the current economic scenario. Since manufacturing has to bear a major proportion of job creation in times to come it is important that an enabling policy framework for attracting skilled, semi‐skilled or unskilled workers in the sector is provided. The Mandate suggests twelve broad areas with specific measures for the short and long term, to stimulate growth and job creation in manufacturing on a sustainable basis. These twelve areas are as follows: 1. Macro Economic Environment and Measures 2. Taxation 3. Labour Policies and Workers’ Housing 4. Feedstock, Raw materials & Electricity for Manufacturing 5. Land for manufacturing 6. Industrial Corridors and Clusters 7. Ease of Doing Business 8. Infrastructure 9. Free Trade Agreements & International trade rithviraj Chavan, Chief about the innovative land making the state scarcity free and 10. MSME 11. Stimulating Demand 12. Skill Development

addressed the National adopted, under which 22.5% of set aside for the next three years. The proportion of respondents reporting higher levels of production in second quarter of 2013‐14 has P improved to 47% as compared to over 35% in previous quarter. Similarly, proportion of respondents expecting Executive Committee Meeting in developed land is given back to the Naina Lal Kidwai, President of Mumbai on August 30, 2013. original land owner, instead of cash FICCI, noted that important states Chavan took a note of the unhappy compensation. like Maharashtra have to play a FICCI In Media FICCI Social Media Networks mood that is prevalent in the He said the state’s mega project lead role in providing the push to industry at a point in time which is policy which is facilitating improve the economic growth of A monthly compilation of media coverage A monthly compilation of media coverage critical not just for business and automotive industry in Mumbai the country. Maharashtra remains on FICCI activities comprising events, on FICCI activities comprising events, economy but for the country itself. continues to attract investment, the leading industrial state which surveys, knowledge paper and policy surveys, knowledge work, policy He mentioned about the change in despite of a clear slowdown. The contributes 15 per cent to the recommendations recommendations RBI leadership and the directions state government is also looking national industrial output in areas that everybody is looking at from outside Mumbai into areas like like textile, agri, auto, chemicals, the political leadership, both at the Satara district, Pune etc, where electrical and pharma and the state central and state government. large automotive investors have remains to be the second largest twitter.com/ficci_india pinterest.com/ficciindia He spoke about the negative shown serious interest. He spoke exporter of software products in employment growth and the about the ‘Advantage Vidarbha’ India. uncertainty of jobs that is prevalent programme, which had signed Kidwai spoke about the in certain sectors and how we can quite a few MOUs, and is now ‘Empowering India – Maharashtra being converted into actual look at reversing the trend to report’ which was released by the facebook.com/ficciindia slideshare.net/ficciindia restructure the economy. projects. Chief Minister and expressed Chavan said projects worth Rs. Chavan underlined the need for willingness to partner and work 5000 crore for Mumbai (MMRDA), improving the quality of airports in with the state on the key FICCI website www.ficci.com from the infrastructural point of the state and spoke how the regulations across 12 variables blog.ficci.com view, in terms of Mumbai Metro, government is working towards which are critical for the industry Monorail, Sahar elevated road, upgrading all the 22 airports which and outline the way forward Eastern freeway and the new will improve connectivity. He also to improve certain business n airport terminal, which will be shared the state’s plan in creating a processes. To receive these services write to [email protected] opened this year. He mentioned permanent mitigation strategy for drought proofing Maharashtra and

42 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 43 MEMBER SERVICES & COMMUNICATION TOOLS

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FICCI SURVEY: SLIGHT UPTURN IN MANUFACTURING IN QUARTER II 2013‐14 ‐ FICCI’s latest Quarterly Survey Minister of Maharashtra, acquisition model that the state has the Rs. 60,000 crore that has been on Manufacturing for second quarter of 2013‐14, indicated a slight upturn in manufacturing activity. Recent initiatives of the government to remove supply bottlenecks by clearing some of the large projects are perhaps reflected in the higher growth expectation for manufacturing sector in quarter two of 2013‐14, noted the survey. addressed the National adopted, under which 22.5% of set aside for the next three years. The proportion of respondents reporting higher levels of production in second quarter of 2013‐14 has P improved to 47% as compared to over 35% in previous quarter. Similarly, proportion of respondents expecting Executive Committee Meeting in developed land is given back to the Naina Lal Kidwai, President of Mumbai on August 30, 2013. original land owner, instead of cash FICCI, noted that important states Chavan took a note of the unhappy compensation. like Maharashtra have to play a FICCI In Media FICCI Social Media Networks mood that is prevalent in the He said the state’s mega project lead role in providing the push to industry at a point in time which is policy which is facilitating improve the economic growth of A monthly compilation of media coverage A monthly compilation of media coverage critical not just for business and automotive industry in Mumbai the country. Maharashtra remains on FICCI activities comprising events, on FICCI activities comprising events, economy but for the country itself. continues to attract investment, the leading industrial state which surveys, knowledge paper and policy surveys, knowledge work, policy He mentioned about the change in despite of a clear slowdown. The contributes 15 per cent to the recommendations recommendations RBI leadership and the directions state government is also looking national industrial output in areas that everybody is looking at from outside Mumbai into areas like like textile, agri, auto, chemicals, the political leadership, both at the Satara district, Pune etc, where electrical and pharma and the state central and state government. large automotive investors have remains to be the second largest twitter.com/ficci_india pinterest.com/ficciindia He spoke about the negative shown serious interest. He spoke exporter of software products in employment growth and the about the ‘Advantage Vidarbha’ India. uncertainty of jobs that is prevalent programme, which had signed Kidwai spoke about the in certain sectors and how we can quite a few MOUs, and is now ‘Empowering India – Maharashtra being converted into actual look at reversing the trend to report’ which was released by the facebook.com/ficciindia slideshare.net/ficciindia restructure the economy. projects. Chief Minister and expressed Chavan said projects worth Rs. Chavan underlined the need for willingness to partner and work 5000 crore for Mumbai (MMRDA), improving the quality of airports in with the state on the key FICCI website www.ficci.com from the infrastructural point of the state and spoke how the regulations across 12 variables blog.ficci.com view, in terms of Mumbai Metro, government is working towards which are critical for the industry Monorail, Sahar elevated road, upgrading all the 22 airports which and outline the way forward Eastern freeway and the new will improve connectivity. He also to improve certain business n airport terminal, which will be shared the state’s plan in creating a processes. To receive these services write to [email protected] opened this year. He mentioned permanent mitigation strategy for drought proofing Maharashtra and

42 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 43 t IN THE STATES t IN THE STATES

he 10th edition of the said banks should no longer be branches in West Bengal this fiscal. Banking Conclave was governed by bureaucracy but by Addressing the Banking Conclave, Torganised in Kolkata during meritocracy and staff should be S S Mundra, CMD, Bank of Baroda, Registration of trademarks not compulsory, but July 24-August 31, 2013 on the more empowered. said though the GDP growth has theme 'Indian Banking Industry: The FICCI-KPMG study on 'Public witnessed a fastest slide from 9 to 5 advisable for protection against any misuse Capturing New Growth Sector Banks - Profiling the per cent within a passage of 2-3 Opportunities'. Banking Conclave is leadership landscape' was released years, Indian economy has shown the flagship programme of FICCI in the inaugural session. The report lot of strength and resilience. With West Bengal State Council (WBSC) focuses on one of the key issues for a good monsoon, formation of where Chairmen and Managing Indian banking sector - human Cabinet Committee on Investment, Directors of leading banks address resource management and progress in restructuring of various FICCI members in exclusive leadership skill which can be discoms' debts, correction in global sessions. The conclave over the looked as both an opportunity and commodity price, end of recession years has emerged as a leading challenge. in USA and Europe – the economy platform where bankers and Ashwani Kumar, CMD, Dena Bank, has lot of opportunities. The industrialists interact with each indicated financial inclusion is not challenges for the public sector other and exchange their ideas and only a challenge but an banks are human resource views. opportunity for the banks to tap challenge, rising NPAs, pressure on The inaugural session of the the huge unbanked market space profitability, fresh capital need, L to R: Jonathan Clegg, Partner, Cleveland, London; Naresh Prasad, Executive Director and Chief of Staff, Office of the Director conclave was addressed by Pratip and banks should focus on rising customer expectation, rising General, Director General, World Intellectual Property Organization (WIPO), Geneva; Chaitanya Prasad, Controller General of Patents, Chaudhuri, Chairman, State Bank of building a profitable business Designs and Trademark, Government of India; P Murari, Adviser to FICCI President; Antonina Stoyanova, Counsellor, Information and India, who said as growth requires model to address this issue. The Growth requires Promotion Division, Madrid Registry, Brands and Designs Sector, WIPO and Jongan Kim, Director, Information and Promotion Division, Madrid Registry, Brands and Designs Sector, WIPO. capital, India is extremely fortunate banks would have an opportunity capital, India is that the gross domestic savings as of opening accounts of subsidy extremely fortunate public awareness building Controller-General of Patents, drugs, chemical & pharma, a percentage of GDP is 30 per cent beneficiaries to boost their CASA. programme was organized Designs and Trademarks in manufacturing industry, in the country. Controlling inflation, The banking industry in India that the gross in Chennai on August 27, cooperation with FICCI. government, researchers, MSMEs stimulating economic growth and needs to find cost-effective ways to A domestic savings as a 2013, on the Madrid System for the More than 150 delegates innovators, academicians, stabilising rupee parity are the serve the SME customers where percentage of GDP is International Registration of Marks participated in the programme, consultants and IT/KPO companies three pre-dominant concerns in the yields are quite high. CMD was organised by the World which comprised senior in IP domain. economy. Commenting on human mentioned that Dena Bank is 30 per cent in the Intellectual Property Organization professionals and experts from the Chaitanya Prasad, Controller resource management , Chaudhuri planning to open at least 12 country. (WIPO) and the Office of the industry, IP attorneys, FMCGs, General of Patents, Designs and

44 n FICCI Business Digest n September 2013 SeptemberAugust 2013 n FICCI Business Digest n 3745 t IN THE STATES t IN THE STATES

regulatory control and increasing on several fronts. Exchange rate CMD, Exim Bank of India, who 10th Banking Conclave 2013 competition. stability at the moment is emerging mentioned India's share in global According to D Sarkar, CMD, as the crucial factor for bringing exports increased threefold from 'Govern banks on meritocracy not bureaucracy; empower bankers' Union Bank of India, the key normalcy to the markets. CMD 0.5 per cent in 1990 to 1.6 per cent challenges for banking industry in stated that amidst all the in 2012. Slow growth in the current macroeconomic turbulence, there are several manufacturing sector and scenario include shrinking loan opportunities for banks – MSME & burgeoning manufacturing trade making opportunities, deteriorating Retail sector, reaching out to deficit has aggravated CAD. asset quality, rising cost of fund, unserved and underserved According to CMD, market shrinking price margins, increased population, wealth management diversification in line with demand capital requirements under Basel III services and new technology. The existing in potential markets can and new entrants to competition to CMD mentioned Canara Bank's boost the export industry. Also, raise attrition. Talking on financial gross NPA ratio is contained at 2.57 there is a need to move up the inclusion, the CMD mentioned per cent as on March 13 compared value chain to reduce investment Union Bank has extended its reach to the industry ratio of 3.4 per cent mismatch or collaborate with to 29497 unbanked/under banked and the bank is taking all possible similar firms to achieve economies villages. steps to arrest slippages, contain of scale. The CMD mentioned NPA and increase recovery. MSMEs are undergoing severe R K Dubey, CMD, Canara Bank, stress and if they work in cluster L to R: Ambarish Dasgupta, Partner & Head of Management Consulting, KPMG; Gaurav Swarup, Chairman, FICCI-WBSC; Pratip mentioned that reflecting the The concluding session was Chaudhuri, Chairman, State Bank of India; Sanjay Chamria, Vice Chairman & MD, Magma FinCorp and Pavan Poddar, Co-Chairman, environment they can reach high economic woes, Indian banking addressed by T CA Ranganathan, FICCI WBSC. levels of competitiveness. n sector is also facing the constraints he 10th edition of the said banks should no longer be branches in West Bengal this fiscal. Banking Conclave was governed by bureaucracy but by Addressing the Banking Conclave, Torganised in Kolkata during meritocracy and staff should be S S Mundra, CMD, Bank of Baroda, Registration of trademarks not compulsory, but July 24-August 31, 2013 on the more empowered. said though the GDP growth has theme 'Indian Banking Industry: The FICCI-KPMG study on 'Public witnessed a fastest slide from 9 to 5 advisable for protection against any misuse Capturing New Growth Sector Banks - Profiling the per cent within a passage of 2-3 Opportunities'. Banking Conclave is leadership landscape' was released years, Indian economy has shown the flagship programme of FICCI in the inaugural session. The report lot of strength and resilience. With West Bengal State Council (WBSC) focuses on one of the key issues for a good monsoon, formation of where Chairmen and Managing Indian banking sector - human Cabinet Committee on Investment, Directors of leading banks address resource management and progress in restructuring of various FICCI members in exclusive leadership skill which can be discoms' debts, correction in global sessions. The conclave over the looked as both an opportunity and commodity price, end of recession years has emerged as a leading challenge. in USA and Europe – the economy platform where bankers and Ashwani Kumar, CMD, Dena Bank, has lot of opportunities. The industrialists interact with each indicated financial inclusion is not challenges for the public sector other and exchange their ideas and only a challenge but an banks are human resource views. opportunity for the banks to tap challenge, rising NPAs, pressure on The inaugural session of the the huge unbanked market space profitability, fresh capital need, L to R: Jonathan Clegg, Partner, Cleveland, London; Naresh Prasad, Executive Director and Chief of Staff, Office of the Director conclave was addressed by Pratip and banks should focus on rising customer expectation, rising General, Director General, World Intellectual Property Organization (WIPO), Geneva; Chaitanya Prasad, Controller General of Patents, Chaudhuri, Chairman, State Bank of building a profitable business Designs and Trademark, Government of India; P Murari, Adviser to FICCI President; Antonina Stoyanova, Counsellor, Information and India, who said as growth requires model to address this issue. The Growth requires Promotion Division, Madrid Registry, Brands and Designs Sector, WIPO and Jongan Kim, Director, Information and Promotion Division, Madrid Registry, Brands and Designs Sector, WIPO. capital, India is extremely fortunate banks would have an opportunity capital, India is that the gross domestic savings as of opening accounts of subsidy extremely fortunate public awareness building Controller-General of Patents, drugs, chemical & pharma, a percentage of GDP is 30 per cent beneficiaries to boost their CASA. programme was organized Designs and Trademarks in manufacturing industry, in the country. Controlling inflation, The banking industry in India that the gross in Chennai on August 27, cooperation with FICCI. government, researchers, MSMEs stimulating economic growth and needs to find cost-effective ways to A domestic savings as a 2013, on the Madrid System for the More than 150 delegates innovators, academicians, stabilising rupee parity are the serve the SME customers where percentage of GDP is International Registration of Marks participated in the programme, consultants and IT/KPO companies three pre-dominant concerns in the yields are quite high. CMD was organised by the World which comprised senior in IP domain. economy. Commenting on human mentioned that Dena Bank is 30 per cent in the Intellectual Property Organization professionals and experts from the Chaitanya Prasad, Controller resource management , Chaudhuri planning to open at least 12 country. (WIPO) and the Office of the industry, IP attorneys, FMCGs, General of Patents, Designs and

44 n FICCI Business Digest n September 2013 SeptemberAugust 2013 n FICCI Business Digest n 3745 t IN THE STATES t IN THE STATES

ICCI in association with the Act and Competition Act, Ankush Trademark, Government of India, registration of trademarks was 1.94 countries. The object of the said that Chennai has been topping lakh. A trademark is a mark P Murari, Adviser to FICCI, spoke Competition Commission of Goyal, PSA Legal Counsellors, said India (CCI) organised a that the basic goal of the MRTP Act Competition Act is to during the last two years when it adopted to distinguish goods or about the importance of F comes to the number of patents services of one person from those registration of trademark, seminar on 'Competition Law and was to prevent the economic promote and sustain its impact on Industry' on July 26, concentration in one common filed. The number of applications of the others,” he explained. international protection of competition in the received by the Indian Intellectual Although the registration of trademarks and the Madrid System. 2013 in Chandigarh. The seminar detriment, curbing unfair trade Property Office for registration of trademarks is not compulsory, it is was supported by Baddi Barotiwala practices, and to check market and to ensure Other speakers were Jongan Kim, trademarks has been increasing advisable to register it for the Nalagarh Industries Association monopolistic activities. On the Director, Information and the freedom of trade over the years. As per 2012 World purpose of its recognition and (BBNIA) and PSA Legal Counsellors. other hand, the object of the Promotion, Division, Madrid and to protect the Intellectual Property Indicators, it better protection like any other The objective was to maintain and Competition Act is to promote and Registry, Brands and Designs has been increasing by 12 per cent valuable property. promote free competition in the sustain competition in the market interest of the Sector, WIPO; Antonina Stoyanova, every year. market and to protect the interests and to ensure the freedom of trade Naresh Prasad, Executive Director Counsellor, Information and consumer in whole. of consumers. and to protect the interest of the Quoting a report published by and Chief of Staff, Office of the Promotion Division, Madrid consumer in whole. He explained in WIPO, he said that India's filing Director General, Director General, Registry, Brands and Designs Rajneesh Bansal, Senior Member, detail the Anti-competitive volume surpassed that of Brazil in WIPO, Geneva, said that India was Sector, WIPO; Jonathan Clegg, FICCI Punjab, Haryana & HP Agreement, dominance and its 2006, Japan's and the Republic of the 90th country to become a part Partner, Cleveland, London; V Advisory Council & Executive abuse with the help of case studies. Korea in 2011. “In 2011, we of the Madrid System, which is a Natarajan, Deputy Registrar of Director, Paul Merchants Ltd., said received maximum number of low cost and effective system to Trade Marks & GI, Trade Marks that reform is an ongoing process The applicability of Competition trademark applications in Asia after facilitate trademark protection in Registry Chennai; R A Tiwari, and we have to continuously strive Law to trade associations, China. We were ranked fifth among export markets. There is a lack of Assistant Registrar of Trade Marks to ensure that our laws and Competition Compliance the intellectual property offices in awareness on the benefits of the & GI, Trade Mark Registry Mumbai institutions grow and develop with Programme and the role of trade the world when it came to system among the industry and and C S Uchil, Senior Examiner of the times, encourage associations in promoting the trademark applications. During other stakeholders. With a single Trade Marks & GI, Trade Marks entrepreneurship, investment and competition compliance were 2012-13, the number of application and fee, a company can Registry, Mumbai. n growth and make our corporate covered in a presentation by Amit applications received for register a trademark in 90 globally competitive. Tayal, Deputy Director (Law), CCI. Sanjay Khurana, Senior Vice He said, at the level of trade President, BBNIA, advised the trade associations, it is important to bear Competition Law allows market to operate freely associations to have a written in mind that regardless of good Competition Law Compliance intentions of the trade association and protects consumers' interests policy and suggested that policies and its members, if the effect of should make it clear that members conduct is to restrict competition, cannot discuss pricing or other the activity may be illegal, and commercially sensitive issues. infringement does not require actual adverse effect on the market, Dr. Satya Prakash, Director (Law), the mere intention to impede CCI, while describing the evolution competition is sufficient. of Competition Law said that the Infringement can attract penal CCI set up under the Competition liability. Therefore, it is the Act, 2002, is the regulatory body responsibility of the association responsible for ensuring that and its members to ensure competition is promoted and compliance with the law. sustained in the market for the benefit and welfare of the The seminar provided the much- industries and, in turn, of the needed one-on-one understanding consumers. He mentioned the of the Competition Law to more objectives and functions of the CCI. than 35 delegates including He further imparted details on representatives of local trade information filing, powers of the associations. n commission and Competition Compliance Programme. L to R: Rajneesh Bansal, Senior Member, FICCI Punjab, Haryana, HP Advisory Council; Sanjay Khurana, Senior Vice President, BBNIA; Describing the basic difference Dr. Satya Prakash, Director (Law), CCI; Amit Tayal, Deputy Director (Law), CCI and Ankush Goyal, PSA Legal Counsellors. between Monopolies and Restrictive Trade Practices (MRTP)

46 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 47 t IN THE STATES t IN THE STATES

46 n FICCI Business Digest n September 2013 September 2013 n FICCI Business Digest n 47 Key macroeconomic indicators

July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July 2012 2012 2012 2012 2012 2012 2013 2012 2013 2013 2013 2013 2013 Index of industrial production (YoY %) IIndustry -0.1 2.0 -0.7 8.4 -1.0 -0.6 2.5 0.6 3.5 1.5 -2.8 -1.8 2.6 Mining -3.5 -0.3 2.2 -0.2 -5.5 -3.1 -1.8 -7.7 -2.1 -3.4 -5.9 -4.3 -2.3 Manufacturing 0.0 2.4 -1.6 9.9 -0.8 -0.8 2.7 2.1 4.3 1.8 -3.6 -1.7 3.0 Electricity 2.8 1.9 3.9 5.5 2.4 5.2 6.4 -3.2 3.5 4.2 6.2 0.0 5.20 Industrial growth as per use-based classification (YoY %) Basic goods 1.0 3.0 2.7 4.3 1.1 2.2 3.7 -1.8 3.2 1.4 -0.9 -1.5 1.7 Intermediate goods 0.1 2.7 1.7 9.6 -1.4 -0.2 3.5 -0.8 2.1 2.6 1.0 1.3 2.4 Capital goods -5.8 -4.4 -13.3 7.0 -8.5 -1.1 -2.5 9.1 9.6 -0.3 -2.6 -5.8 15.6 Consumer goods-Durables 0.8 1.0 -1.5 16.7 1.1 -8.1 -0.7 -2.6 -4.9 -9.6 -18.4 -10.4 -9.3 Growth of core infrastructure industries (YoY %) Overall Index 1.5 2.9 5.1 4.5 2.2 2.9 3.7 -2.4 3.2 2.3 2.3 0.1 3.1 Coal 2.1 11.0 21.4 10.9 -4.4 -0.2 2.3 -8.0 0.3 3.1 -3.3 -3.0 1.2 Crude Oil -0.7 -0.6 -1.7 -0.4 0.8 1.0 -0.2 -4.0 0.2 -1.2 -2.4 -0.6 -2.3 Natural Gas -13.5 -13.5 -14.8 -14.9 -15.2 -14.9 -16.8 -20.1 -17.7 -17.4 -18.7 -16.7 -16.1 Refinery Products 3.6 8.4 10.3 20.3 6.6 5.0 10.5 4.3 5.6 6.1 5.5 2.3 5.1 Fertilizers -2.2 -2.1 5.7 2.0 5.0 -3.8 -9.1 -4.0 3.6 -2.4 -2.0 11.3 0.4 Steel 1.1 2.9 1.3 -4.7 7.8 3.6 1.9 0.5 6.6 1.9 4.0 3.4 7.0 Cement 6.5 4.7 18.3 11.1 -0.4 9.5 10.2 3.1 8.3 5.2 2.4 2.3 0.8 Electricity 2.7 1.9 3.9 5.6 2.4 5.2 6.3 -3.7 3.5 3.5 6.2 -1.2 5.2 Monetary indicators (YoY %) Money supply (M3) 14.0 14.1 13.6 13.3 13.6 11.2 12.9 12.1 13.3 12.4 12.1 12.8 12.5 Aggregate deposits 13.9 14.7 13.8 13.4 12.8 11.1 13.1 12.7 14.3 13.3 13.4 13.8 13.4 Total bank credit 17.3 16.9 15.7 16.0 17.0 15.1 16.0 16.3 14.1 14.5 14.1 13.7 14.9 Non-food credit 16.5 17.5 15.5 17.9 17.8 14.9 15.9 16.1 11.7 14.9 15.5 13.9 15.2 Inflation (YoY %) WPI 7.5 8.0 8.1 7.3 7.2 7.3 7.3 7.3 5.7 4.8 4.6 5.2 5.8 Primary products 10.5 11.2 9.2 7.8 9.6 10.6 11.4 10.5 7.4 5.1 5.7 8.8 9.0 Fuel group 8.4 8.7 12.0 11.6 10.0 10.2 9.3 10.6 7.8 8.3 7.3 7.5 11.3 Manufactured products 5.9 6.4 6.5 5.9 5.4 5.0 4.9 4.8 4.3 3.7 3.3 2.9 2.8 CPI (IW) 9.8 10.3 9.1 9.6 9.6 11.2 11.6 12.1 11.4 10.2 10.7 11.1 10.8 External sector indicators Exports ($ mn) 23140.43 23134.47 24878.0 24026.8 23250.2 25519.7 25679.5 25761.7 30742.2 23,583.9 23,969.0 23,592.9 25,834.5 Imports ($ mn) 40619.45 37307.27 41751.9 44660.8 41332.0 43362.9 45670.2 41251.8 40,548.2 42,045.7 44,673.2 35,901.1 38,102.6 Oil imports ($ mn) 13816.9 12805.7 14188.2 15764.1 14169.1 14655.8 16094.7 15175.4 13,393.5 14,151.0 15,054.2 12,762.3 12,709.4 Non-oil imports ($ mn) 26802.6 24501.6 27563.6 28896.7 27162.9 28707.1 29575.4 26076.3 27,154.7 27,894.6 29,619.1 23,138.7 25,393.2 Trade balance ($ mn) -17479.02 -14172.80 -16873.9 -20633.9 -18081.8 -17843.2 -19990.6 -15490.1 -9,805.9 -18,461.8 -20,704.2 -12,308.2 -12,268.1 Gross inflows / 2,388 3,856 5,117 3279 2,431 2,561 3,672 3,108 3,002 3,518 2,870 2,354 2,567 Investments ($ mn) FII ($ mn) 2148 1566 4190 2937 2026 4,882 6,117 4,176 1,246 1,542 6,704 -8,726 -4,703 External sector indicators (YoY %) Exports* -12.4 -7.1 -6.3 1.7 -0.1 0.6 1.2 2.3 6.6 -0.9 -3.3 -5.4 11.6 Imports* -1.2 -7.1 5.0 8.5 5.7 8.3 6.3 2.8 -4.3 11.2 7.0 0.4 -6.2 Exchange rate and Forex reserves Re / Dollar 55.47 55.55 54.60 53.02 54.68 54.64 54.31 53.8 54.4 54.3 55.0 58.4 59.77 Re / Euro 68.24 68.87 70.12 68.75 70.15 71.66 72.12 71.9 70.5 70.7 71.3 77.1 78.20 Re/ 100 Yen 70.23 70.68 69.90 67.23 67.60 65.28 61.18 57.8 57.4 55.7 54.5 60.0 60.0 Forex reserves ($ billions) 288.7 290.4 294.8 295.3 294.5 296.6 296.1 291.9 292.6 296.3 287.8 284.6 280.1

Sources – Central Statistical Organization, Ministry of Commerce and Industry, Ministry of Finance, Reserve Bank of India, *based on Provisional numbers, some numbers have been rounded to one decimal place.

48 n FICCI Business Digest n September 2013 Key macroeconomic indicators

48 n FICCI Business Digest n September 2013