A Year of by 25 Councils, 55 Committees and 3 Missions

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A Year of by 25 Councils, 55 Committees and 3 Missions plus the usual momentum of activities, were coordinated major events, the Auto Expo once again showcased just A year of by 25 Councils, 55 Committees and 3 Missions. how well the Indian automotive sector is revving up! CII interacted closely with the new government and CII met the Prime Minister along with the received a warm response for its initiatives and representatives of MSME associations to address suggestions. Many of ourrecommendations found issues facing MSMEs, and presented a detailed set of RESILIENCE & GROWTH place in the full Budget and the new Foreign Trade recommendations for the development of this sector. Policy. Our suggestions for the proposed Company Law, I cannot stress enough how crucial it is to the the draft Direct Tax Code and the Goods and Services overall inclusive growth agenda for industry to integrate Tax drew the government's attention. historically disadvantaged sections of society into its This year, CII brought out the report of the Task Force strategies. Companies must sign on to the CII Code on on Corporate Governance, which outlined measures for Affirmative Action. CII is striving to include Affirmative INDIA CAN TRULY BE PROUD of the sound listed companies to adopt voluntarily to further improve Action in the agenda of all national committees. More macro-economic fundamentals it has built over the the standards of governance in Corporate India. funds are needed for various projects and I urge years. As economy after economy crumbled in the Besides policy recommendations on various issues, CII members to contribute generously. global economic crisis, India stood firm and steady on accompanied the Commerce and Industry Minister, Last, but not the least, our focus on manufacturing its growth path. A few years earlier, we could not have Mr Anand Sharma, on many of hisoverseas visits, as WTO was well recognised this year with the government believed that 7% growth would be maintained during negotiations were reprised. We also set up a task force officially undertaking the formulation of a National the worst global economic crisis in 80 years! It was a with the Ministry of Road Transport and Highways and Manufacturing Policy, based on our recommendations. rich and multifaceted experience to lead CII during arranged overseas investor meets with Minister Kamal Nath. We hope this proposed policy will help industry this tumultuous year. Mr Kapil Sibal, Minister for Human Resource Development, overcome the various hurdles that constrain growth. As India successfully managed the largest-ever launched the CII-BESU Industrial Research, Innovation and Mr Tarun Das retired as Chief Mentor this year, after exercise in democracy, the re-elected government HRD Center in West Bengal. The Skills Development over four decades of dedicated service to CII. I would reiterated the theme of inclusive growth. The first Mission is gaining momentum. like to acknowledge the immense role he played in priority was to stabilize the economy through stimulus A CII delegation traveled to Copenhagen for the Summit steering CII to its present position. We wish him all the measures and monetary management. Exports and on Climate Change, even as Indian business is becoming a best and will continue to seek his advice. MSMEs were given special attention. Aggressive leader in green buildings and renewable energy. I am immensely grateful to my colleagues in the measures were taken to pump liquidity into the Continuing ourinteractions with global leaders, CII National Council, the chairs of the many councils and markets, compensate for plunging overseas demand accompanied the Prime Minister on his landmark visit committees, and the Council of Past Presidents for all their and boost domestic consumption. to USA. The annual mission to USA took place soon support and hard work during this complex year. Without As manufacturing and exports growth returned to after President Obama took charge. The Singapore their active participation and generous time, CII would not positive territory, despite a poor monsoon, India attracted mission highlighted the India ASEAN FTA, while have been able to maintain its pace of activity. I would global attention for its robust recovery. Through the focused missions visited USA, Israel, Egypt, Oman, particularly like to express appreciation for Mr Hari Bhartia's slowdown, CII worked closely with the Government and Sweden and Saudi Arabia, among other countries. We solid support on numerous occasions and fronts. the RBI, to ensure that suitable stimulus measures were also met with the Presidents of Bangladesh, Germany As my Presidential term ends, I am pleased to note opportunely announced for industry. and Korea, and the Prime Minister of Malaysia. that the economy is on a stronger wicket. From next Our theme this year stressed on Economy, The annual India Economic Summit celebrated year onwards, we can envisage a return to the Infrastructureand Governance. Stabilisation of the 25 years of partnership between the World Economic high-growth trajectory. Industry has a major role to economy was on top of our agenda, supported by Forum and CII, and drew over 800 participants from play in India's growth effort and must take the lead in attention to infrastructure to alleviate India's across the globe. The Partnership Summit, held in driving inclusive development. competitive disadvantage. New rules and laws for Chennai, was addressed by 25 overseas ministers. The companies also placed governance centrestage. Other India Africa Project Partnership was held for the sixth areas of focus were agriculture, internal security and time to great success, and the Pravasi Bharatiya Divas membership services, especially for MSMEs. These, brought together 1300 overseas Indians. Among other Venu Srinivasan PRESIDENT’S REVIEW ANNUAL REVIEW 09/10 03 government. We recommended measures to revive greatest challenge confronting India in this century. Stimulating various sectors, particularly MSME, manufacturing, and The drought-affectedagriculture sector remained exports. We took our partnership with the government stagnant, pushing food inflation to new highs. CII to a higher level, through collaborations to stave off the organized a conference on managing water resources, credit crunch, inflation and deceleration of industrial while promotions of thefood processing industry were sustainable RECOVERY activity in the Indian economy. also made. Without the integration of agriculture with The CII Manufacturing Council and Committees the markets, the sector will continue to under-perform. regularly interacted with policy-makers and took CII actively worked with the Ministry of Corporate initiatives to revamp underperforming sectors. CII and Affairs for the India Corporate Week and organized the BCG brought out a joint report on the way forward for Corporate Governance Summit. The President of India the manufacturing sector in India, identifying acknowledged our role in the growth and development of WHEN I STARTED my term, the world economy was aspirations, potential roadblocks, opportunities and India’s corporate sector at the concluding function of the in doldrums. Global output had contracted by 2.3% imperatives for the development of this sector. Week. A set of Voluntary Guidelines on Corporate for the first time since the great Depression, Exports from India are recovering rapidly, and in Q4 Governance were also released, which received wide prompting the worst-ever global economic crisis. 2009, rose by 6%, ending the negative spell. CII provided publicity. CII also made extensive representations to the World trade and output are still in the recovery inputs for theForeign Trade Policy, and, in particular, Government and the Parliamentary Standing Committee phase. But I am glad that India seems to have come recommended reducing transaction costs that render on theCompanies Bill that is awaiting enactment. out fairly well from the slowdown. Indian goods uncompetitive in the global market. OurCentres of Excellence continue to spearhead A variety of stimulus packages were put in place Overall, growth in theservice sector retained its trend competitiveness in their respective fields. We launched starting from the second half of 2008-09, in the over the year, bolstered by heightened government our seventh centre in Kolkata, to hone leadership skills in Interim Budget and again, in the main Budget. By Q2, expenditure.Education has been a key focus area for CII: various aspects of enterprise and administration. The the economy showed signs of turning, and in the partnerships were forged with universities and academia, CII-ITC Centre for Sustainable Development participated 2009-10 financial year, India’s GDP expanded by 6.7%. and policy recommendations on higher and primary in theCopenhagen Summit and is rapidly becoming a Various economic indicators have been on the upside, education were presented to the government. Healthcare key interlocutor for business in climate change efforts. confirming that the pace of recovery has been too was an area of high engagement. Regular monitoring of industry trends through ASCON stronger than expected. Infrastructure is still a major roadblock to sustainable surveys kept industry abreast of economic developments. Industrial Production growth has turned around, growth in India. While CII feels that financing may not be Trade fairs, conferences and publications, our brand accelerating to 16.7% YoY in January 2010 compared to a major issue, independent regulators and accurate and ambassadors,
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