Volume 19 No. 12 December 2010 Contents 05 NEWSMAKER India – Argentina Business Partnership and Made in India show The seminar on Argentina–India Partnership and the Made India Show in Buenos Aires were held to foster business ties between India and Argentina. 06 COVER STORY India Economic Summit: Implementing India Bringing together global business and key decision-makers and leaders from India, the 26th edition of the India Economic Summit had the overarching theme of ‘Implementing India’. 14 ECONOMY Q2 Review of the Monetary Policy 2010 The RBI’s second quarter review of monetary policy has been influenced by the mixed indications of persistent sluggishness in advanced economies and positive signals emanating from Emerging Market Economies (EMEs). 22 INDUSTRY 10th IMME and Global Mining Summit 2010 The Global Mining Summit 2010, organized concurrently with the 10th International Mining and Machinery Exhibition, covered the entire gamut of the mining, minerals and processing industry. 26 PLUS All our regular features We welcome your feedback and suggestions. Do write to us at [email protected] Edited, printed and published by Chandrajit Banerjee, 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 Lustra Print Process. B- 249 Naraina Industrial Area, Phase 1, New Delhi - 110 028 Registration No. 34541/79 JOURNAL OF THE COnfederatiON OF INDIAN INDUSTRY 2 | December 2010 Communiqué india & the world newsmaker India – Argentina Business Partnership and ‘Made in India’ show Sajeev Babu Kurup, Counsellor, Embassy of India in Argentina; Debora Giorgi, Minister of Industry, Argentina; Tarun Das, President, Aspen Institute India, and former Chief Mentor, CII; and Hector Mendez, President, Argentine Industrial Union CII COLLABORATED WITH the Embassy of India in international suppliers to meet buyers from Argentina and Argentina to organize a seminar on Argentina–India neighbouring countries. It provided Indian entrepreneurs Partnership on 16 November in Buenos Aires. The an opportunity to forge business alliances and establish seminar was addressed Mr. Tarun Das, President direct contact with buyers, dealers, distributors, agents Aspen Institute India, and Ms Deborah Giorgi, Trade and manufacturers from all levels of the South American Minister of Argentina. automobile industry. Inviting the Argentina business community to do business With participation from over 51 companies from with India, Mr Das emphasised on the need to overcome India, the Forum saw wide networking between the geographical distances between the two countries Indian SMEs and Argentinean business houses, and co-operate in sectors like services, agriculture, resulting in sharing and transfer of technology. banking and legal services. Approximately US$ five million worth of enquiries were CII, jointly with the Embassy of India, Buenos Aires, generated, covering a wide variety of auto parts and Argentina, also organized the ‘Made in India’ show garage equipment. – an India Pavilion in Automechanika Argentina, an A polo match was organised at the Jockey Club in San exhibition for auto parts and garage equipment and Isidro between Argentine and Indian teams, which was allied services, from 17-20 November in Buenos won by the Indian team. Aires. This exhibition was co-sponsored by the Ministry of Commerce and Industry, Government of India. The pavilion was inaugurated on 17 November by Mr Sajeev Babu Kurup, Counsellor, Embassy of India in Argentina. The India Pavilion was a reflection of the growing technological sensitivity in the auto industry in India and its ability to share its capability with the world, especially with Latin American countries. Automechanika Argentina was a 4 day event featuring a comprehensive display of the entire range of automobile spare parts and accessories from all over Players of both the Polo teams with Sajeev Babu Kurup at the the world. It was designed as a perfect platform for post-match ceremony Communiqué December 2010 | 5 cover story india & the world ‘Implementing India’ India Economic Summit Calls for Moving from Agenda to Action Bringing together global business and key decision makers and leaders from India, the India Economic Summit was held in New Delhi from 14-16 November under the overarching theme of ‘Implementing India’. The 26th edition of the high-profile business convention, jointly organized by the World Economic Forum and CII, called for moving from Agenda to Pranab Mukherjee, Finance Minister of India, with Prof. Klaus Schwab, Action. Founder & Executive Chairman, World Economic Forum 6 | December 2010 Communiqué india & the world THE INDIA ECONOMIC SUMMIT this year focused on how domestic and international decision-makers from business, government and civil society can implement national policies across states in both rural and urban areas to accelerate economic development, remove barriers to growth and increase social inclusion. Addressed by 170 speakers from across the world on topics as diverse and pertinent as leadership, building Sanjeev Chadha, President, India Region, PepsiCo India; Amrita Cheema, Anchor, Deutsche critical infrastructure, expanding skills Welle TV, Germany; Harish Manwani, President, Asia, Africa, Central and Eastern Europe, Unilever, Singapore; Dr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, development, addressing security India; and Arjun Thapan, Special Senior Adviser to the ADB President for Infrastructure and threats and achieving income and Water, Asian Development Bank, Manila gender equality, the three day conference attracted close to 800 top business leaders from 50 countries. The programme for the summit was organized under four thematic pillars: India’s Implementation Imperative; Security and Sustainability Imperative; Inclusive Growth Imperative; and Innovation and Competitiveness Imperative. Top ministers of India addressed the meeting and apprised international delegates of India’s priorities and the reforms process underway. They included Mr Pranab Hari S Bhartia, President, CII and Co-CMD, Jubilant Bhartia Group, India; Kamal Nath, Minister of Road Transport and Highways, India; Sunil Kant Munjal, Past President, CII, and Chairman, Mukherjee, Minister of Finance; Mr Hero Corporate Service Ltd, India; Ajit Gulabchand, CMD, Hindustan Construction Company, Anand Sharma, Minister of Commerce India; and Rahul Bajaj, Chairman, Bajaj Auto, India Bhupinder Singh Hooda, Chief Minister, Sunil Bharti Mittal, Chairman and Group CEO, Bharti Enterprises, India; Haryana, with Chandrajit Banerjee, Raila Amolo Odinga, Prime Minister of Kenya; and Anand Sharma, Director General, CII Minister of Commerce & Industry, India Communiqué December 2010 | 7 india & the world Luis A. Moreno, President, Inter-American Development Bank, Washington DC; Peter Van Loan, Minister of International Trade, Canada; Kamal Nath; Prof Gita Gopinath, Harvard University, USA; Amos Muhinga Kimunya, Minister of Transport, Kenya; and Alberto Vallarino Clement, Minister of Economy and Finance, Panama and Industry; Dr Montek Singh Ahluwalia, Deputy the higher growth of 9 per cent and above, and to Chairman, Planning Commission of India; Ms Agatha ensure that growth is more inclusive. K Sangma, Minister of State for Rural Development; Mr The Finance Minister highlighted the measures taken Jyotiraditya M Scindia, Minister of State for Commerce by the government to boost investment, including and Industry; Mr Sachin Pilot, Minister of State for the Financial Stability and Development Council, the Communications and Information Technology; Mr Fiscal Sector Legislative Reforms Commission, financial Bhupinder Singh Hooda, Chief Minister of Haryana and inclusion and new direct and indirect tax measures. He Mr Arun Jaitley, Leader of the Opposition, Rajya Sabha, also reiterated the multi-pronged strategy adopted to India, among others. achieve inclusive development and stressed governance The co-chairs for the Summit were: Mr Jon Fredrik and service delivery by government, especially through Baksaas, President and Chief Executive Officer, Telenor the proposed Unique Identification cards. Group, Norway; Mr Ajit Gulabchand, Chairman and Mr. Klaus Schwab, Founder and Executive Chairman, Managing Director, Hindustan Construction Company, World Economic Forum, identified ten paradigm shifts India; Ms Ellen Kullman, Chair of the Board and Chief arising from the global economic crisis, including next Executive Officer, DuPont, USA; Mr Pawan Munjal, generation, resource scarcity, shift towards India and Managing Director and Chief Executive Officer, Hero China, greener world, and social spheres. Group, India; and Mr Dennis Nally, Chairman, PwC Speaking at the session on ‘The New South: Developing International, PwC, USA. the Africa-India Partnership’, Mr Raila Amolo Odinga, At the session ‘The New Reality,’ Mr. Pranab Mukherjee, Prime Minister of Kenya, said that Africa is strategically Finance Minister of India, highlighted the gradual shift situated to partner India. The two regions can spur in global economic power from the developed to the bilateral development, he said adding that the co- emerging and developing countries. Discussing India’s operation between Africa, India and other emerging current prospects, he said it is reasonable to expect the economies like Brazil and China is ushering in a new economy to revert