Global India Business Meeting 28-30 June 2009, Munich, Germany a Horasis-leadership event Report Horasis is a global visions community committed to enact visions for a sustainable future (http:/www.horasis.org) Co-hosts: State of Bavaria, with Messe München International and vbw (Bavarian Business Association) Federation of Indian Chambers of Commerce and Industry (FICCI) Co-chairs: Prince Abdullah bin Mosa'ad Chairman, Saudi Paper Manufacturing Co, Saudi Arabia Rahul Bajaj Member of Parliament and Chairman, Bajaj Auto, India Peter Bauer Chief Executive Officer, Infineon, Germany Claude Beglé Chairman, Swiss Post, Switzerland Pramod Bhasin Chief Executive Officer, Genpact, India Gerhard Cromme Chairman, Siemens andThyssenKrupp, Germany Jim Goodnight Chief Executive Officer, SAS, USA Kris Gopalakrishnan Chief Executive Officer, Infosys, India Alan Hassenfeld Chairman of the Executive Committee, Hasbro, USA Prakash Hinduja Chairman, Hinduja Group, Switzerland Baba Kalyani Chairman, Bharat Forge, India Khater Massaad Chief Executive Officer, RAK Investment Authority, UAE Liu Jiren Chairman, Neusoft, China Nasser Munjee Chairman, Development Credit Bank, India GV Krishna Reddy Chairman, GVK Power & Infrastructure, India Dhruv M. Sawhney Chairman,Triveni Engineering & Industries, India Harshpati Singhania Managing Director, JK Paper; President, FICCI, India Strategic Partners: Baker & McKenzie RAK Investment Authority Knowledge Partners: Arshiya International CLSA Genpact Havas Media Media Partners: International HeraldTribune Special Partner: Strategic Foresight Group 3 Frank-Ju ̈rgeRnichter, President, Horasis, welcoming participants Global India Business Meeting 2009 Reviewing the Programme 4 Table of Contents Foreword 6 India and Bavaria to Intensify Cooperation 16 What is India’s Impact on Global Growth? 18 Honoring the Indian Business Leaders of theYear 2009 20 Need for Rule-based Multilateral Trading System 23 Commerce Minister Sharma Meets Global CEOs in Germany 25 5 Foreword The inaugural Horasis Global India Rahul Bajaj , Member of Parliament and Business Meeting convened in Munich on Chairman, Bajaj Auto, India, put it:‘The 28-30 June 2009.The meeting was held at a strength of India’s voice in the international critical time, coming less then a month after community has proven that the reforms that the formation of the new Indian government. have been implemented made the country Held under the theme‘Overcoming the better able to weather the global crisis.’ Crisis – Opportunities for India’ and with Nasser Munjee , Chairman, Development more than 250 business and governmental Credit Bank, India, added that‘India is leaders taking part in the event, the Global expected to emerge from the current global India Business Meeting provided the platform crisis before the average of the world for India, Europe and the rest of the world economy.’ Prince Abdullah bin Mosa’ad , to discuss the implications of the global Chairman, Saudi Paper Manufacturing Co, economic crisis for India and to shape the Saudi Arabia, declared that‘when markets post-crisis environment. Also, the meeting dried up, India was quick to refocus its was conceived to reflect on the increased trade and marketing efforts in targeting emphasis of Indian firms to build global and regions not severely affected by the sustainable brands – and thus contributing economic downturn such as Saudi Arabia to the healing of the world economy.This and other Gulf economies. Saudi Arabia and report distils the outcomes and observations India are partners of natural choice.’ that emerged from the meeting. Participants reached consensus that In a turbulent region at a time of multiple • Global and domestic challenges are testing crises confronting the world, India has the resilience of the Indian economy. Still, emerged after the 2009 election prepared the economy will grow by approximately to face both challenges and opportunities 6- 8% in 2009 and 2010 awaiting the country.The United Progressive • Investments in infrastructure, agriculture, Alliance, led by the Congress Party, has healthcare and education will be the key retained power. As one of the participants, drivers to ensure long-term and inclusive growth Arrival of Participants 6 like India must readjust with the new realities.The challenges require continuity, as well as correction.When the crisis is over, investment will be made in those economies where there is deeper trust. By and large our economy is stable and strong. We in India have perhaps done better than others in this crisis.’ ‘India is expected to emerge from the current global crisis before the average of the world economy’ Nasser Munjee, Chairman, Development Credit Bank, India Minister Sharma also pointed out how far we have come with globalization where India in the meanwhile is investing more in Germany than Germany in India with more than 100 of India’s leading companies being Anand Sharma, Indian Minister of Commerce and Industry, on how to connect India with the world present in Germany. At the same time he emphasized the challenge of his country to • India will tap the synergies with its produce inclusive growth where the 7 % neighbouring countries and play a more GDP increment would benefit also the pronounced role in global trade and majority of people in his country who are investment still living at the poverty line. Minister Sharma made it a point to transcend this The new confidence was on full display at necessity to all countries in the world that the opening dinner when the Indian Union are facing similar fundamentals as India. Minister of Commerce and Industry Anand Sharma spoke candidly about the impact of Minister Sharma announced that India will the downturn.‘The crisis is real and serious,’ intensify its global economic engagement. the Minister said.‘In the present global He sent the message that theWTO talks economic meltdown, an emerging power need to be reenergised.‘India won’t be Rahul Bajaj, Chairman, Bajaj Auto, with Hans Steininger, CEO, His Royal Highness Prince Abdullah, Saudi Arabia, sharing his MT Aerospace views on the global economic outlook 7 Minister Sharma and Minister Zeil Alan Hassenfeld, Chairman, Hasbro, in discussion with Hubert Burda, Chairman, Hubert Burda Media stumbling block’, he added.‘India is deter- economy so that the country can use trade mined to complete the Doha trade deal.’ to recover when the crisis eases.’ Supachai At the same dinner session, Martin Zeil , Panitchpakdi stressed that India has been Deputy Minister President of Bavaria, one of the central and influential players in reviewed Germany’s and Bavaria’s economic the multilateral trading system, a champion relations with India.‘Germany is India's of developing country interests. India fought largest trading partner in the European hard for development issues to be placed Union and India will continue to be one of firmly and explicitly at the heart of the the most important investment locations Doha trade agenda, and succeeded. He also and trading partners for the German underlined that the world economies have economy,’ he said.‘ I see signs of potential reached a critical time in these negotiations. economic growth next year as Germany ‘We need India’s constructive engagement will benefit from the continued economic and leadership to help guide theWTO talks growth generated by fast expanding towards a successful conclusion that would economies like India. India is a driver of benefit all members.’ global commerce.’ Participants had a chance to learn from the Supachai Panitchpakdi , Secretary- State of Karnataka, one of India’s leading General, UNCTAD, Switzerland, added that states. Murugesh R Nirani , Minister for ‘it is important to further reform India’s Large & Medium Industries of Karnataka Supachai Panitchpakdi, Secretary-General, Anup Mudgal, Consul General of India Jay Desai, CEO, Universal Consulting - what UNCTAD can Indian entrepreneurs learn from their global counterparts and vice versa 8 Europe and North America came together for one and a half day retreat to debate the critical requirements for Indian firms to successfully expand their operations towards a global level-playing field.The Horasis Global India Business Meeting was co-hosted by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the State of Bavaria , with Messe München International and vbw (Bavarian Business Association), and supported by a group of private sector partners led by Baker & McKenzie and RAK Investment Authority. Amit Mitra, Randolf Rodenstock, President, vbw Murugesh R Nirani, Minister for Secretary General, FICCI, told participants Large & Medium Industries, State of Karnataka that‘the Global India Business Meeting provides an excellent platform to discuss outlined his strategy for achieving high Indian firms’ strategies, challenges and quantitative and qualitative growth. contributions to overcome the global Karnataka has developed into India’s centre economic crisis and to develop into truly of IT and technology. Murugesh R Nirani globalized corporations.’ explained to the participating business leaders how their respective governments will reshape the states’ agenda going ‘When markets dried up, India was quick to refocus its trade and forward. Martin Zeil , Deputy Minister marketing efforts in targeting regions President of Bavaria, stressed how important not severely affected by the economic Karnataka is for Bavaria’s economic future downturn such as Saudi Arabia and – as the Bavarian hi-tech industry is a other