Volume 18 No. 2 February 2009 12 in this issue... 6 Vibrant Gujarat 8 India Inc. at Davos 12 15th Partnership Summit 22 3rd Sustainability Summit 8 31 Defence Industry Seminar plus... n India Rubber Expo 2009 n The Power of Cause & Effect n India’s Tryst with Corporate Governance 22 n India & the World n Regional Round Up n And all our regular features We welcome your feedback and suggestions. Do write to us at 31 [email protected] Edited, printed and published by Director General, CII on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi-110003 Tel: 91-11-24629994-7 Fax: 91-11-24626149 Email: [email protected] Website: www.cii.in Printed at Aegean Offset Printers F-17 Mayapuri Industrial Area, Phase II, New Delhi-110064 Registration No. 34541/79 JOURNAL OF THE Confederation OF INDIAN INDUSTRY 2 | February 2009 Communiqué Padma Vibhushan award winner Ashok S Ganguly Member, Prime Minister’s Council on Trade & Industry, Member India USA CEO Council, Member, Investment Commission, and Member, National Knowledge Commission Padma Bhushan award winners Shekhar Gupta A M Naik Sam Pitroda C K Prahalad Editor-in-Chief, Indian Chairman and Chairman, National Paul and Ruth McCracken Express Newspapers Managing Director, Knowledge Commission Distinguished University (Mumbai) Ltd. Larsen & Toubro Professor of Strategy Padma Shri award winner R K Krishnakumar Director, Tata Sons, Chairman, Tata Coffee & Asian Coffee, and Vice-Chairman, Tata Tea & Indian Hotels Communiqué February 2009 | 5 newsmaker event 4th Biennial Global Narendra Modi, Chief Minister, Gujarat, Mukesh Ambani, Chairman, Investors’ Summit 2009 Reliance Industries, Ratan Tata, Chairman, Tata Group, K V Kamath, President, CII, and Raila Amolo Odinga, Prime Minister, Kenya ibrant Gujarat, the 4th biennial Global Investors’ and Mr Ajit Gulabchand, Chairman & Managing Director, Summit 2009 brought together business leaders, Hindustan Construction Company Ltd, among several investors, corporations, thought leaders, policy other dignitaries. Vand opinion makers to understand and explore Political leaders from countries such as Japan, UK, business opportunities with the State of Gujarat. CII was China, Russia, Canada, Israel, Poland, Korea, UAE, the National Partner for this Summit. Malawi, Indonesia, Oman, Kenya, Italy, Singapore, Based on the theme – ‘Gujarat Going Global’, the Vibrant Trinidad & Tobago, Vietnam, Uganda, Zimbabwe and Gujarat: Global Investors’ Summit 2009, held on 12-13 Maldives also participated in the event. January in Ahmedabad, had resounding success this Japan was the Partner Country to this Summit. This year. During the course of two days, 8662 MoUs worth is the first time any country has agreed to partner US$ 243 billion (over Rs. 12 lakh crore) were signed. with a State of another country. Japan External Trade The summit witnessed participation of over 20000 delegates of which over 600 were from overseas from Organisation (JETRO) was designated as the partner 45 countries. organization. Japan also reciprocated Gujarat’s initiatives for mutual economic cooperation by sending two senior The who’s who of Indian industry was present at the level delegations, led by Mr. Hideaki Domichi, the Summit. The leading corporates included Mr. Ratan Tata, Ambassador of Japan to India and Mr. Heizo Takenaka, Chairman, Tata Group, Mr. K V Kamath, President, CII, and Former Minister of Economic & Fiscal Policy, Japan. Chairman & Managing Director & CEO, ICICI Bank Ltd., Mr. Mukesh Ambani, Chairman, The maximum number of delegates Reliance Industries, Mr. Kumar too, was from Japan, totaling over Mangalam Birla, Chairman, Aditya 70 members. Birla Group, Mr. Shashi Ruia, The exhibition was organised in a Chairman, Essar Group, Mr Anil grand manner. Spread over an area of Ambani, Chairman, ADAG Group, Mr. 19,200 sq. mts, there were 232 stalls Sunil Bharti Mittal, Chairman, Bharti showcasing eminent companies of Enterprises, Mr Anand Mahindra, India. Sixteen international countries Vice Chairman & Managing Director, also participated in the exhibition, Mahindra & Mahindra Ltd, Mr Baba including Japan, Korea, UK, Kenya, Kalyani, Chairman & Managing Arab League, Russia, Netherlands, Director, Bharat Forge Ltd, Mr Arun Trinidad & Tobago, Czech Republic, Bharat Ram, Chairman, SRF Ltd, K V Kamath with Narendra Modi El Salvador and Uganda. 6 | February 2009 Communiqué india & the world spotlight WEF Meeting 2009 Shaping the Post- Crisis World An 85 – member strong Indian contingent joined over 2500 delegates from all over the world to deliberate on the all –pervasive global economic crisis and ways to stabilize and re-launch the global economy. The participants included a record 41 heads of state or government, key finance, foreign, trade and energy ministers, along with religious, media and cultural leaders, social entrepreneurs and heads of non- governmental organizations from 96 Haruhiko Kuroda, President, Asian Development Bank, Philippines, countries. Dr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission of India, and K V Kamath, President, CII Complementing the over – arching theme of ‘Shaping the post crisis world’ the Annual Meeting also pinpointed a number of interrelated global risks including climate change, food and water security. The programme followed six programmatic tracks that are high on the global agenda in 2009. These included Promoting Stability in the Financial System and Reviving Global Economic Growth; Ensuring Effective Global, Regional and National Governance for the Long Term; Addressing the Challenges of Azim Premji, Chairman, Wipro; Kamal Nath, Union Minister, Commerce and Industry, India, Deepak Puri, CMD, Moser Baer, India, Sustainability and Development; Shaping and Kapil Sibal, Union Minister for Science & Technology and Earth Sciences, India the Values and Leadership Principles for a Post-Crisis World; Catalysing the Next Wave of Growth through Innovation, Science and Technology; and Understanding the Implications on Industry Business Models. Chinese Premier Wen Jiabao, Russian Prime Minister Vladimir Putin, Federal Chancellor of Germany Angela Merkel, Prime Minister Hilde Schwab, Chairperson & Co-Founder, Schwab Foundation for of the United Kingdom Gordon Brown; Social Entrepreneurship, with Mallika Sarabhai, Dancer, India, and Premier Taro Aso of Japan addressed Jose A. Abreu, Founder, Fundacion del Estado para el Sistema Nacional de Orquestas Juveniles e Infantiles, Venezuela, participants at different sessions of the Jet Li, Founder, One Foundation, China, and Amitabh Bachchan, Actor, India, during the Presentation of the Crystal Awards Meeting. 8 | February 2009 Communiqué spotlight David Michael, Sr. Partner and Head, BCG, Greater China, Janmejaya K. Sinha, MD, BCG, India; Hans-Paul Buerkner, President and CEO, The Boston Consulting Group GmbH; Kamal Nath, K V Kamath, and David Rhodes, Sr. Partner, Global Leader, Financial Services Practice, BCG, at the BCG-CII breakfast session on ‘Defying the Downturn: How Rapidly Developing Economies are Dealing with the Global Slowdown’ Indian Presence at the World Economic Forum Meeting • 85-member Indian delegation – Rupert Murdoch, Chairman to climate change, energy, skill comprising high-ranking and CEO, News Corporation, development, innovation and government officials, CEOs of USA culture. major Indian companies, media – Maria Ramos, Group Chief • The programme also featured a and civil society representatives Executive, Transnet, South session on India that looked at • Delegation led by Mr Kamal Africa how the country can stimulate its Nath, Minister, Commerce and – Jeroen van der Veer, Chief economy, strengthen its regional Industry Executive, Royal Dutch Shell relations and move forward with • Dr Montek Singh Ahluwalia, Deputy Plc reforms in the face of the global Chairman, Planning Commission, • Werner Wenning, Chairman of slowdown, recent terrorist attacks Mr Kapil Sibal, Minister, Science the Board of Management, Bayer, and the national elections in 2009. and Technology and Mr Praful Germany • CII and Indian companies organized Patel, Minister, Civil Aviation, were • Amitabh Bachchan and Mallika several events on the sidelines of the other members of the official Sarabhai received the Crystal the Annual Meeting. While CII delegation Award held its traditional annual ‘India • Mr Anand Mahindra, Vice-Chairman • Vishwanathan Anand, Chess Reception’ and breakfast sessions and Managing Director, Mahindra Grandmaster and Current World in partnership with Deutsche Bank & Mahindra, was a Co-Chair the Champion, also participated. India and The Boston Consulting Meeting. The other Co – Chairs • 36 members of the Indian Group, many Indian companies were delegation had over 50 speaking like Wipro, Infosys, TCS and IBEF – Kofi Annan, Secretary-General, roles in around 42 sessions over organized private sessions and United Nations (1997-2006) the four days receptions. – Stephen Green, Group • Indian speakers lent an important • Wipro and CII jointly organized the Chairman, HSBC Holdings, Indian perspective to global issues annual Bollywood music evenings in UK ranging from the economic crisis Davos, featuring DJ Notorious. Prince Henri d’Arenberg, Founder, GBA, Belgium, Deepak Puri, Vijay Poonoosamy, Vice-President, Intl Affairs, Etihad Airways C K Prahalad, Paul and Ruth McCracken Distinguished University PJSC, UAE, Prakash P. Hinduja, Chairman, Europe, Hinduja Group, Professor of Corporate Strategy, University of Michigan,