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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
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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 Featuresn
n
Energy
Need to provide energy to all at affordable prices; open markets with
safety nets for vulnerable sections vital
FICCI signs 2 MoUs for adopting trigeneration and energy efficiency
technologies
Health
Healthcare providers to be graded in terms of patient-safety and quality
of delivery
Moving towards sustainable quality healthcare
Chairman-Editorial Board
Dr. A Didar Singh
Member-Editorial Board &
Head-Communications
Vinita Sethi
Editor
Sukumar Sah
Assistant Editor
Sushmita Yadav
Marketing
Animesh Goswami
Advertising & Circulation
PL Joseph
Veena Srivastava
Rahul Siwach
Dinesh Bhandari"
Anjana Rajwar
Design & Art
Visualeyes Communications Pvt. Ltd
Diamond Art Printers
c All Rights are reserved.
No part of this publication may be
reproduced, stored in a retrieval system,
or transmitted in any form or by any
means, Electronic, Mechanical,
Photocopying, Recording and/or
otherwise without the prior written
permission of the Publisher.
Statement about Ownership and other
Particulars about the Journal (FICCI
Business Digest) required to be published
under Rule 8 of the Registrar Central
Rules, 1956.
Printed and Published by Secretary
General on behalf of (or owned by)
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,
Federation House, Tansen Marg,
New Delhi – 110001
Phone: 23738760-70(11 Lines)
Fax: 23320714, 23721504
E-Mail: [email protected]
Website: www.ficci.com
Printed by
We look forward to your feedback
We would like your feedback/comments to enable us to improve
our offering. Write to us at: [email protected] or
4
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From the Secretary General's Desk…
India and Iraq: Time for new synergies
FICCI delegation explores prospects of cooperation in SMEs and greater
flow of capital from Japan
CSR, a winning proposition
Health Ministry focusing on capacity building to combat child
malnutrition
Liberian President invites Indian business to invest in country's
reconstruction
Sachin Pilot offers to take up industry's demand for tax relief on CSR
spends with Finance Ministry
Belgium, your gateway to Europe
Kamal Nath suggest test drive of tramways in a medium-sized Indian city
to gauge its efficacy
BRICS gets down to business amidst lingering global slowdown
Hungary, an investment destination few can afford to ignore
Uttarakhand Task Force
Indian publishing industry reaching out to African and South Asian
nations
Maharashtra's mega project policy sees investment flowing in: CM
In the States
Macroeconomic Indicators
19
06
Special Featuresn
n
Energy
Need to provide energy to all at affordable prices; open markets with
safety nets for vulnerable sections vital
FICCI signs 2 MoUs for adopting trigeneration and energy efficiency
technologies
Health
Healthcare providers to be graded in terms of patient-safety and quality
of delivery
Moving towards sustainable quality healthcare
Chairman-Editorial Board
Dr. A Didar Singh
Member-Editorial Board &
Head-Communications
Vinita Sethi
Editor
Sukumar Sah
Assistant Editor
Sushmita Yadav
Marketing
Animesh Goswami
Advertising & Circulation
PL Joseph
Veena Srivastava
Rahul Siwach
Dinesh Bhandari"
Anjana Rajwar
Design & Art
Visualeyes Communications Pvt. Ltd
Diamond Art Printers
c All Rights are reserved.
No part of this publication may be
reproduced, stored in a retrieval system,
or transmitted in any form or by any
means, Electronic, Mechanical,
Photocopying, Recording and/or
otherwise without the prior written
permission of the Publisher.
Statement about Ownership and other
Particulars about the Journal (FICCI
Business Digest) required to be published
under Rule 8 of the Registrar Central
Rules, 1956.
Printed and Published by Secretary
General on behalf of (or owned by)
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,
Federation House, Tansen Marg,
New Delhi – 110001
Phone: 23738760-70(11 Lines)
Fax: 23320714, 23721504
E-Mail: [email protected]
Website: www.ficci.com
Printed by
We look forward to your feedback
We would like your feedback/comments to enable us to improve
our offering. Write to us at: [email protected] or
4
14
17
26
28
29
30
32
35
36
38
40
41
42
44
48
From the Secretary General's Desk…
India and Iraq: Time for new synergies
FICCI delegation explores prospects of cooperation in SMEs and greater
flow of capital from Japan
CSR, a winning proposition
Health Ministry focusing on capacity building to combat child
malnutrition
Liberian President invites Indian business to invest in country's
reconstruction
Sachin Pilot offers to take up industry's demand for tax relief on CSR
spends with Finance Ministry
Belgium, your gateway to Europe
Kamal Nath suggest test drive of tramways in a medium-sized Indian city
to gauge its efficacy
BRICS gets down to business amidst lingering global slowdown
Hungary, an investment destination few can afford to ignore
Uttarakhand Task Force
Indian publishing industry reaching out to African and South Asian
nations
Maharashtra's mega project policy sees investment flowing in: CM
In the States
Macroeconomic Indicators
19
06
4 FICCI Business Digest September 2013n n
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
From the Secretary General’s Desk…
4 FICCI Business Digest September 2013n n
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
From the Secretary General’s Desk…
he annual Health Conference
of FICCI on the theme T'Sustainable Quality
Healthcare' took a comprehensive
view of the challenges faced by the
healthcare sector by discussing and
debating each element and the
corresponding cost implications
towards delivery of quality
healthcare both in the public and
private healthcare sector. The
significant issues included hospital
planning, infrastructure, operations
and innovation in technology and
practice were discussed in great
detail at the conference. The
conference also reflected on the
need of reduction in disease
burden by focus on early diagnosis
and prevention and to breaking the
myth that adherence to quality
standards would necessarily
6 FICCI Business Digest n n September 2013
enhance cost. The event also
focussed on integrating and
mainstreaming AYUSH system of
medicine to move towards
achieving Universal Health
Coverage.
While inaugurating the
conference, Dr. Syeda S Hameed,
Member, Planning Commission,
complimented FICCI for all the
good work done in healthcare for
ensuring greater accessible and
affordable quality healthcare for
the people, especially the poor. She
called for models ensuring
seamless public private partnership
and mass screening of the
population for determining the
prevalence and necessary
strategies for tackling the growing
menace of non-communicable
diseases.
Sangita Reddy, Chairperson, FICCI
Health Services Committee,
emphasised that the time was ripe
for the country to move towards
ensuring health security, in lines
similar to food security. She said
that the underlying thrust must be
on universal coverage, prevention,
innovation and high quality
execution.
Dr. A Didar Singh, Secretary
General, FICCI, said that to achieve
financial viability and sustainability
in both the public and private
sector, government needs to keep
the healthcare out of GST and
extend tax holiday from current five
years to ten years for establishing
healthcare facilities in non-metros
for minimum of 50 bedded
hospitals instead of current 100.
Nilanjan Sanyal, Secretary
(AYUSH), MoHFW and Dr. Nata
Menabde, WHO representative to
India, also addressed the inaugural
session of the conference.
A FICCI-EY working paper on
'Universal Health Cover for India:
Evolving a Framework for
Healthcare Reimbursement
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
FICCI-EY working paper, 'Universal Health Cover for India: Evolving a Framework for
Healthcare Reimbursement Methodologies'. On the dais (L to R): Shobha Mishra Ghosh,
Senior Director, FICCI; Rajen Padukone, Co-chairman, FICCI Health Services Committee;
Murali Nair, Partner, EY Ltd.; Sangita Reddy, Chairperson, FICCI Health Services
Committee; Dr. A Didar Singh, Secretary General , FICCI; Dr. Nata Menabde, Who
Representative to India; Dr. GSK Velu, Co-chairman, FICCI Health Services Committee
and Dr. Sanjeev Chaudhry, Chairman & MD, SRL Ltd.
he annual Health Conference
of FICCI on the theme T'Sustainable Quality
Healthcare' took a comprehensive
view of the challenges faced by the
healthcare sector by discussing and
debating each element and the
corresponding cost implications
towards delivery of quality
healthcare both in the public and
private healthcare sector. The
significant issues included hospital
planning, infrastructure, operations
and innovation in technology and
practice were discussed in great
detail at the conference. The
conference also reflected on the
need of reduction in disease
burden by focus on early diagnosis
and prevention and to breaking the
myth that adherence to quality
standards would necessarily
6 FICCI Business Digest n n September 2013
enhance cost. The event also
focussed on integrating and
mainstreaming AYUSH system of
medicine to move towards
achieving Universal Health
Coverage.
While inaugurating the
conference, Dr. Syeda S Hameed,
Member, Planning Commission,
complimented FICCI for all the
good work done in healthcare for
ensuring greater accessible and
affordable quality healthcare for
the people, especially the poor. She
called for models ensuring
seamless public private partnership
and mass screening of the
population for determining the
prevalence and necessary
strategies for tackling the growing
menace of non-communicable
diseases.
Sangita Reddy, Chairperson, FICCI
Health Services Committee,
emphasised that the time was ripe
for the country to move towards
ensuring health security, in lines
similar to food security. She said
that the underlying thrust must be
on universal coverage, prevention,
innovation and high quality
execution.
Dr. A Didar Singh, Secretary
General, FICCI, said that to achieve
financial viability and sustainability
in both the public and private
sector, government needs to keep
the healthcare out of GST and
extend tax holiday from current five
years to ten years for establishing
healthcare facilities in non-metros
for minimum of 50 bedded
hospitals instead of current 100.
Nilanjan Sanyal, Secretary
(AYUSH), MoHFW and Dr. Nata
Menabde, WHO representative to
India, also addressed the inaugural
session of the conference.
A FICCI-EY working paper on
'Universal Health Cover for India:
Evolving a Framework for
Healthcare Reimbursement
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
FICCI-EY working paper, 'Universal Health Cover for India: Evolving a Framework for
Healthcare Reimbursement Methodologies'. On the dais (L to R): Shobha Mishra Ghosh,
Senior Director, FICCI; Rajen Padukone, Co-chairman, FICCI Health Services Committee;
Murali Nair, Partner, EY Ltd.; Sangita Reddy, Chairperson, FICCI Health Services
Committee; Dr. A Didar Singh, Secretary General , FICCI; Dr. Nata Menabde, Who
Representative to India; Dr. GSK Velu, Co-chairman, FICCI Health Services Committee
and Dr. Sanjeev Chaudhry, Chairman & MD, SRL Ltd.
Methodologies' was released at the
conference. The paper critically
analyses the current
reimbursement methodologies
followed for Government
sponsored health insurance
schemes which may compromise
patient's safety and dis-incentivise
quality conscious providers in their
quest to actively participate in
making affordable and quality care
for all a reality. The report also
proposes a new reimbursement
framework for more effective PPP
in in-patient healthcare delivery. A
FICCI Knowledge Paper on
'Reinventing Affordable and
Universal Healthcare through
Innovation' was also presented at
the conference.
Some of the key messages that
emerged out of the discussions are
the Government would gradually
shift towards a mechanism wherein
providers would be graded on the
basis of patient safety and quality
of care. For achieving this, the
government needs to look at
developing national costing
guidelines for differential capturing
of the cost of care and mechanism
to include incentives and
disincentives for quality assurance.
C K Mishra, Additional Secretary,
Ministry of Health and Family
Welfare (MoHFW), spoke about
8 FICCI Business Digest n n September 2013
focusing on the approach to
achieve universal health coverage,
identify the missing links,
strengthening the public healthcare
delivery system and assessing the
private and public sectors
contribution. According to him, the
four key areas to be looked at are
increased health care spending and
resources; cost effective financing
mechanism; technology and
research and strategic investment
in medical education system. He
urged FICCI to create a Task Force
on Sustainability and provide
inputs to the government on these
lines.
R K Jain, Additional Secretary,
MoHFW, appreciated FICCI's efforts
in taking forward both National
Standard Treatment Guidelines and
Standards for Electronic Health
Records. The current reforms in
standardisation are being taken up
at the highest levels of the
government. He also highlighted
the Government's current initiative
of providing free generic drugs and
its intention to cover the whole
country under the scheme in due
course.
Provision for clean drinking water,
vastly improved sanitation and
hygiene standards in the country
would go a long way in reducing
the disease burden in the country.
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
should be very detailed covering all
aspects of healthcare. Site and
project consultant selection,
awareness of building, waste and
other regulatory norms and
securing complete funding at
planning stage itself would go a
long way in better hospital
infrastructure for the long term.
Low cost technology was
identified as a key enabler of
sustainable quality healthcare.
There is a strong need to develop
an enabling ecosystem for
facilitating healthcare innovation
with active participation from
industry, academia and the
Government. The quantum of
funding for R&D has to be
increased manifold and regulatory
framework should enable
indigenous development of
medical technologies.
There is also a need to break the
myth that enhancing quality would
lead to higher costs. Ascertaining
the value and savings accrued
through enhanced quality
standards over time would
establish that costs are far
outweighed by the savings. The
environmental changes are creating
a need for shift from organisational
centric to patient centric approach
to quality and a conscious
measurement of outcomes. n
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.
Methodologies' was released at the
conference. The paper critically
analyses the current
reimbursement methodologies
followed for Government
sponsored health insurance
schemes which may compromise
patient's safety and dis-incentivise
quality conscious providers in their
quest to actively participate in
making affordable and quality care
for all a reality. The report also
proposes a new reimbursement
framework for more effective PPP
in in-patient healthcare delivery. A
FICCI Knowledge Paper on
'Reinventing Affordable and
Universal Healthcare through
Innovation' was also presented at
the conference.
Some of the key messages that
emerged out of the discussions are
the Government would gradually
shift towards a mechanism wherein
providers would be graded on the
basis of patient safety and quality
of care. For achieving this, the
government needs to look at
developing national costing
guidelines for differential capturing
of the cost of care and mechanism
to include incentives and
disincentives for quality assurance.
C K Mishra, Additional Secretary,
Ministry of Health and Family
Welfare (MoHFW), spoke about
8 FICCI Business Digest n n September 2013
focusing on the approach to
achieve universal health coverage,
identify the missing links,
strengthening the public healthcare
delivery system and assessing the
private and public sectors
contribution. According to him, the
four key areas to be looked at are
increased health care spending and
resources; cost effective financing
mechanism; technology and
research and strategic investment
in medical education system. He
urged FICCI to create a Task Force
on Sustainability and provide
inputs to the government on these
lines.
R K Jain, Additional Secretary,
MoHFW, appreciated FICCI's efforts
in taking forward both National
Standard Treatment Guidelines and
Standards for Electronic Health
Records. The current reforms in
standardisation are being taken up
at the highest levels of the
government. He also highlighted
the Government's current initiative
of providing free generic drugs and
its intention to cover the whole
country under the scheme in due
course.
Provision for clean drinking water,
vastly improved sanitation and
hygiene standards in the country
would go a long way in reducing
the disease burden in the country.
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
should be very detailed covering all
aspects of healthcare. Site and
project consultant selection,
awareness of building, waste and
other regulatory norms and
securing complete funding at
planning stage itself would go a
long way in better hospital
infrastructure for the long term.
Low cost technology was
identified as a key enabler of
sustainable quality healthcare.
There is a strong need to develop
an enabling ecosystem for
facilitating healthcare innovation
with active participation from
industry, academia and the
Government. The quantum of
funding for R&D has to be
increased manifold and regulatory
framework should enable
indigenous development of
medical technologies.
There is also a need to break the
myth that enhancing quality would
lead to higher costs. Ascertaining
the value and savings accrued
through enhanced quality
standards over time would
establish that costs are far
outweighed by the savings. The
environmental changes are creating
a need for shift from organisational
centric to patient centric approach
to quality and a conscious
measurement of outcomes. n
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.
t is ironic that although Indian
healthcare is growing at a Ihealthy CAGR of 15.4 per cent
and has reached US$ 60 billion in
2010-2011, issues of affordability,
accessibility, and quality continue
to persist. In its endeavour to make
healthcare accessible and
affordable, the government is
increasingly seen to be moving
from being a provider to payor
especially with the expansion of
Government Sponsored Health
Insurance Schemes (GSHIS) with
estimates of covering 500 million
people by 2015. The limited
capacities in public healthcare
sector has encouraged forging of
PPPs and new private hospitals
being set up to cater to insured
patients under the schemes. Nearly
two-third of the total ~11000
empanelled hospitals in RSBY
(Rashtriya Swasthiya Bima Yojana)
scheme for instance is from the
10 FICCI Business Digest n n September 2013
private sector. Even in mass
government programmes like
NRHM, there is a growing tendency
and need for collaboration with the
private sector to bridge the gaps in
the public system.
Although, the Indian healthcare
cost are the lowest compared to
anywhere in the world for the
similar quality of care, low per
capita income (~ Rs. 70,000 p.a.)
makes it unaffordable to the
masses. On the other hand, cost of
care has been steadily increasing;
medical inflation has remained at
12-15 per cent in recent years. This
is primarily due to high capital
investments towards land,
infrastructure and medical
technology. The ever increasing
input costs of human resources and
consumables and non-scientific
tariff determination by both
insurance companies and GSHIS
are adding to the burden. This
leads to long gestation period for a
hospital to break even i.e.,
anywhere between 6-8 years.
Moreover, PPPs have not been
successful due to lack of uniform
governance structure and
unrealistic tariffs set for cost of
treatment.
In the above context, there is a
strong need to consider the myriad
challenges faced by the private
healthcare sector in marrying
affordability with viability. Some of
the key issues to achieve financial
viability and sustainability in both
public and private healthcare
facilities are discussed below.
Standardization of healthcare
practices: At present the health
system in India consists of
healthcare providers operating
within an unregulated environment,
with no controls on what services
can be provided by whom, in what
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
Clinical Establishment Act 2010 by
states, some semblance of
standardisation will be achieved.
The Health Ministry’s efforts
towards development of National
Standard Treatment Guidelines
(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.
Moving towards sustainable quality healthcareSangita Reddy*
t is ironic that although Indian
healthcare is growing at a Ihealthy CAGR of 15.4 per cent
and has reached US$ 60 billion in
2010-2011, issues of affordability,
accessibility, and quality continue
to persist. In its endeavour to make
healthcare accessible and
affordable, the government is
increasingly seen to be moving
from being a provider to payor
especially with the expansion of
Government Sponsored Health
Insurance Schemes (GSHIS) with
estimates of covering 500 million
people by 2015. The limited
capacities in public healthcare
sector has encouraged forging of
PPPs and new private hospitals
being set up to cater to insured
patients under the schemes. Nearly
two-third of the total ~11000
empanelled hospitals in RSBY
(Rashtriya Swasthiya Bima Yojana)
scheme for instance is from the
10 FICCI Business Digest n n September 2013
private sector. Even in mass
government programmes like
NRHM, there is a growing tendency
and need for collaboration with the
private sector to bridge the gaps in
the public system.
Although, the Indian healthcare
cost are the lowest compared to
anywhere in the world for the
similar quality of care, low per
capita income (~ Rs. 70,000 p.a.)
makes it unaffordable to the
masses. On the other hand, cost of
care has been steadily increasing;
medical inflation has remained at
12-15 per cent in recent years. This
is primarily due to high capital
investments towards land,
infrastructure and medical
technology. The ever increasing
input costs of human resources and
consumables and non-scientific
tariff determination by both
insurance companies and GSHIS
are adding to the burden. This
leads to long gestation period for a
hospital to break even i.e.,
anywhere between 6-8 years.
Moreover, PPPs have not been
successful due to lack of uniform
governance structure and
unrealistic tariffs set for cost of
treatment.
In the above context, there is a
strong need to consider the myriad
challenges faced by the private
healthcare sector in marrying
affordability with viability. Some of
the key issues to achieve financial
viability and sustainability in both
public and private healthcare
facilities are discussed below.
Standardization of healthcare
practices: At present the health
system in India consists of
healthcare providers operating
within an unregulated environment,
with no controls on what services
can be provided by whom, in what
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
Clinical Establishment Act 2010 by
states, some semblance of
standardisation will be achieved.
The Health Ministry’s efforts
towards development of National
Standard Treatment Guidelines
(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.
Moving towards sustainable quality healthcareSangita Reddy*
This should pave the way for an all-
encompassing health information
portal, which has detailed
demographic data helping in
periodic review of disease-wise,
city-wise and region-wise
information. Simultaneously, the
IRDA has been working closely with
the industry to standardise several
operational areas like billing and
discharge formats, critical illness
definitions, agreements between
providers & payors that would
streamline the operational issues
persisting between insurers and
providers and help increasing
affordability of care through better
penetration of health insurance in
the country.
We, at FICCI, are proud to have
supported and worked closely with
the Ministry and IRDA in this game
changing effort.
Planning and infrastructure
challenges: Hospital planning and
designing is a complex exercise
due to the multiplicity and diversity
of activities involved in healthcare.
An ideal healthcare infrastructure
will not only provide for all aspects
of patient safety but should also
lead to affordable healthcare. There
is a need for an integrated
approach to planning of hospitals
in order to make them reliable and
viable. A holistic approach for
design, construction, operations
and maintenance will help in
reduction of capital and
operational cost while fulfilling its
core mission of ensuring patient
safety.
Operational challenges:
Operational cost is an amalgam
of medical consumables and
devices, human resources,
operation and maintenance
expenses, as well as hospital
utilities and non-health services.
The operational challenges are
magnified by the huge shortfall in
healthcare human resources and
rising salary costs. India has just 0.7
12 FICCI Business Digest n n September 2013
physicians and 1.0 nurse per 1000
population vs. global average of 1.4
and 2.8, respectively. Hence, it is
critical for every type of healthcare
facility today to have appropriate
hospital and human resource
management for optimising the
utilisation of resources by bringing
in standard operating practices.
High cost of medical technology:
Although medical technology is
the one of the key pillars of
healthcare, over 80 per cent of the
consumption in the country
depends on imports leading to
high capex cost. Despite the
growth of scientific and
technological development in India,
availability of appropriate and
affordable health technologies and
e-Health solutions is inadequate.
This is due to lack of appropriate
ecosystem for innovation and the
several regulatory and policy level
challenges faced by the industry.
For sustainable quality healthcare
in India, medical technology needs
more indigenous innovation and
manufacturing initiatives. A
quantum increase in allocation of
R&D funds for local innovation with
synergies between the government,
academia and industry will help in
driving the growth of the sector.
Negligible primary and
preventive healthcare:
Early detection of disease is easy
to manage and reduces the
economic burden on both
individual and the state. The
burden of non-communicable
diseases is expected to double to
57 per cent by the year 2020
compared to 1990, while the
incidence of communicable
diseases still remains high. There is
a compelling need to promote
preventive and primary care
through general practitioners and
home care as a step towards
affordability and sustainability of
healthcare.
Tariff determination and
payment methods:
The healthcare providers,
particularly the small and medium
sized hospitals that are largely
dependent on patients covered
under GSHIS, CGHS and ESIS are
crumbling under the financial
pressure due to the unrealistic tariff
determination and delays in
payments. The current focus of
most GSHIS is on the economics of
procurement rather than on
aspects related to patient safety
and care. A fundamental shift is
required in which providers are
graded on the basis of patient
safety and quality of care; national
costing guidelines for differential
capturing of the cost of care and
mechanism to include incentives
and disincentives for quality
assurance.
The present challenge is to
establish new and sustain existing
institutions that are financially
sound and responsive to the
dynamic needs of the people. The
private healthcare sector will
require a renewed look at their
business model with appropriate
changes in their capex
requirements, streamlined
operations and lean execution to
sustain and capture new avenues of
growth. Similarly, the public
healthcare providers too will have
to bring in operational and
management efficiencies for
sustainability. Along with this, the
policy makers have to create an
enabling environment for the
healthcare sector to prosper and
cater to the needs of a billion plus
population.
* Sangita Reddy is Chairperson,
FICCI Health Services Committee
and ED, Apollo Hospital Group.
n
This should pave the way for an all-
encompassing health information
portal, which has detailed
demographic data helping in
periodic review of disease-wise,
city-wise and region-wise
information. Simultaneously, the
IRDA has been working closely with
the industry to standardise several
operational areas like billing and
discharge formats, critical illness
definitions, agreements between
providers & payors that would
streamline the operational issues
persisting between insurers and
providers and help increasing
affordability of care through better
penetration of health insurance in
the country.
We, at FICCI, are proud to have
supported and worked closely with
the Ministry and IRDA in this game
changing effort.
Planning and infrastructure
challenges: Hospital planning and
designing is a complex exercise
due to the multiplicity and diversity
of activities involved in healthcare.
An ideal healthcare infrastructure
will not only provide for all aspects
of patient safety but should also
lead to affordable healthcare. There
is a need for an integrated
approach to planning of hospitals
in order to make them reliable and
viable. A holistic approach for
design, construction, operations
and maintenance will help in
reduction of capital and
operational cost while fulfilling its
core mission of ensuring patient
safety.
Operational challenges:
Operational cost is an amalgam
of medical consumables and
devices, human resources,
operation and maintenance
expenses, as well as hospital
utilities and non-health services.
The operational challenges are
magnified by the huge shortfall in
healthcare human resources and
rising salary costs. India has just 0.7
12 FICCI Business Digest n n September 2013
physicians and 1.0 nurse per 1000
population vs. global average of 1.4
and 2.8, respectively. Hence, it is
critical for every type of healthcare
facility today to have appropriate
hospital and human resource
management for optimising the
utilisation of resources by bringing
in standard operating practices.
High cost of medical technology:
Although medical technology is
the one of the key pillars of
healthcare, over 80 per cent of the
consumption in the country
depends on imports leading to
high capex cost. Despite the
growth of scientific and
technological development in India,
availability of appropriate and
affordable health technologies and
e-Health solutions is inadequate.
This is due to lack of appropriate
ecosystem for innovation and the
several regulatory and policy level
challenges faced by the industry.
For sustainable quality healthcare
in India, medical technology needs
more indigenous innovation and
manufacturing initiatives. A
quantum increase in allocation of
R&D funds for local innovation with
synergies between the government,
academia and industry will help in
driving the growth of the sector.
Negligible primary and
preventive healthcare:
Early detection of disease is easy
to manage and reduces the
economic burden on both
individual and the state. The
burden of non-communicable
diseases is expected to double to
57 per cent by the year 2020
compared to 1990, while the
incidence of communicable
diseases still remains high. There is
a compelling need to promote
preventive and primary care
through general practitioners and
home care as a step towards
affordability and sustainability of
healthcare.
Tariff determination and
payment methods:
The healthcare providers,
particularly the small and medium
sized hospitals that are largely
dependent on patients covered
under GSHIS, CGHS and ESIS are
crumbling under the financial
pressure due to the unrealistic tariff
determination and delays in
payments. The current focus of
most GSHIS is on the economics of
procurement rather than on
aspects related to patient safety
and care. A fundamental shift is
required in which providers are
graded on the basis of patient
safety and quality of care; national
costing guidelines for differential
capturing of the cost of care and
mechanism to include incentives
and disincentives for quality
assurance.
The present challenge is to
establish new and sustain existing
institutions that are financially
sound and responsive to the
dynamic needs of the people. The
private healthcare sector will
require a renewed look at their
business model with appropriate
changes in their capex
requirements, streamlined
operations and lean execution to
sustain and capture new avenues of
growth. Similarly, the public
healthcare providers too will have
to bring in operational and
management efficiencies for
sustainability. Along with this, the
policy makers have to create an
enabling environment for the
healthcare sector to prosper and
cater to the needs of a billion plus
population.
* Sangita Reddy is Chairperson,
FICCI Health Services Committee
and ED, Apollo Hospital Group.
n
14 FICCI Business Digest September 2013n n
il's well between India and
Iraq if the recent visit of Othe Iraq Prime Minister
Kamil al-Maliki to India and the
ensuring dynamics are any
indication. The India-Iraq
relationship sealed by centuries old
cultural, spiritual exchanges, India's
committed partnership in Iraq's
progress towards a free,
democratic, progressive and unified
state is now set to travel wider and
deeper, courtesy a mutual desire to
"expand and diversify the economic
cooperation" in agriculture, water
resource management,
pharmaceuticals, healthcare,
information technology,
infrastructure, low cost housing and
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
explore and which can inject a new
dynamism in the relationship.
The strongest example is
obviously the energy sector. No
doubt, Iraq has become India's
second largest crude oil supplier,
with an estimated crude import
worth more than US$ 15 billion in
2012 but New Delhi and Baghdad
are now keen for an elevation of
the buyer-seller relationship to a
strategic partnership through joint
ventures in oil exploration,
petrochemical complexes and
fertiliser plants. This, as desired by
Prime Minister Dr. Manmohan
Singh, would bring equity
partnership in oil production, and
joint ventures in oil exploration,
The new environment
of Iraq has unfolded a
conducive climate for
doing business by the
public sector and
private sector.
FICCI KK Birla Auditorium
India and Iraq: Time for new synergies
Naina Lal Kidwai, President, FICCI, in
conversation with Kamil al-Maliki,
Prime Minister of Iraq (right) and
Anand Sharma, India's Commerce and
Industry Minister.
14 FICCI Business Digest September 2013n n
il's well between India and
Iraq if the recent visit of Othe Iraq Prime Minister
Kamil al-Maliki to India and the
ensuring dynamics are any
indication. The India-Iraq
relationship sealed by centuries old
cultural, spiritual exchanges, India's
committed partnership in Iraq's
progress towards a free,
democratic, progressive and unified
state is now set to travel wider and
deeper, courtesy a mutual desire to
"expand and diversify the economic
cooperation" in agriculture, water
resource management,
pharmaceuticals, healthcare,
information technology,
infrastructure, low cost housing and
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
explore and which can inject a new
dynamism in the relationship.
The strongest example is
obviously the energy sector. No
doubt, Iraq has become India's
second largest crude oil supplier,
with an estimated crude import
worth more than US$ 15 billion in
2012 but New Delhi and Baghdad
are now keen for an elevation of
the buyer-seller relationship to a
strategic partnership through joint
ventures in oil exploration,
petrochemical complexes and
fertiliser plants. This, as desired by
Prime Minister Dr. Manmohan
Singh, would bring equity
partnership in oil production, and
joint ventures in oil exploration,
The new environment
of Iraq has unfolded a
conducive climate for
doing business by the
public sector and
private sector.
FICCI KK Birla Auditorium
India and Iraq: Time for new synergies
Naina Lal Kidwai, President, FICCI, in
conversation with Kamil al-Maliki,
Prime Minister of Iraq (right) and
Anand Sharma, India's Commerce and
Industry Minister.
In the railway sector, the Iraqis
have welcomed the expression of
interest by IRCON in turnkey
execution of railway projects in Iraq
including civil and track works,
electrification, signalling, setting up
of workshops/production units for
rolling stock and its supply.
Keeping in view the demand for
low-cost housing in Iraq, both sides
will now explore the possibilities of
involvement of Indian public and
private sector companies in the
low-cost housing sector in Iraq.
Both India and Iraq have agreed
to cooperate in agricultural
education and research activities
through signing of an appropriate
institutional framework MOU for
mutual benefit.
An MOU on water resource
management between India and
Iraq has opened up the prospects
of cooperation through
collaboration and sharing of
experience and expertise between
the two sides.
India has already been active in
the area of capacity building in
Iraq, including in higher education
and healthcare. Keeping in view the
increasing number of Iraqi
nationals visiting India for
medicare, the two sides can look at
exchange of health personnel,
medical personnel, nursing
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
these fields would establish the
crucial institutional framework to
enhance co-operation in the
identified areas and boost
economic and trade relations.
As both countries seek to
increase their oil trade and expand
cooperation in other areas,
including agriculture, India and Iraq
are open to considering the
possibility of trading in their
currencies. A local currency
payment mechanism will insulate
India's oil purchases from the sharp
fluctuations in the rupee value
against the dollar and save traders
from exchange rate losses. With the
gains out of such an arrangement
becoming apparent to both, India
and Iraq, according to Commerce
and Industry Minister Anand
Sharma, are exploring the
possibility of trading in their local
currencies - dinar and rupee and
the officials are expected to take up
discussions on this.
The Iraq Government's overtures
demonstrate that India remains a
non-polarising factor in Iraq's
foreign policy and our relations go
beyond oil. The two countries now
need to jointly rebuild on the
mutuality of their current interests
in the region and globally. n
petrochemical complexes and
fertiliser plants.
The MoU signed between India
and Iraq on cooperation in the field
of energy is expected to provide a
strong framework to further
diversify cooperation. The stage
has been set with Iraq expressing a
desire for Indian companies such as
IOC, RIL etc to participate in the
setting up of the planned five new
refineries. Iraq has also agreed to
consider India's proposal for a
long-term (10-year) pact to meet
the increased crude oil demand by
the new refineries and also
consider India's request for better
terms, including abolition of Line of
Credit requirement and an increase
in interest-free credit period from
30 to 60 days.
In the steel sector, greater
cooperation would include joint
ventures to set up steel plant in
Iraq or in India for production of
steel pipes with the purpose of
transporting oil in Iraq. In power,
recognising the existing capabilities
of BHEL in manufacturing gas
turbine units, the Iraqi side has
agreed to include BHEL as a
qualified equipment manufacturer
for its power sector.
16 FICCI Business Digest n n September 2013
Anand Sharma, India's Commerce and Industry Minister shaking hands with
Kamil al-Maliki, Prime Minister of Iraq (2nd from right). Also seen is Naina Lal Kidwai,
President, FICCI.
FICCI delegation explores prospects of cooperation in SMEs and greater flow of capital from Japan
hen Japan was cruising
on one of the most Wrapid growth
trajectories in the Japanese
economic history in the 1960s
surpassing Germany to become the
second largest economy in the
world, FICCI was the first business
chamber to set up a bilateral
mechanism, the India-Japan
Business Cooperation Committee
(IJBCC) in 1966, for engagement
between the two countries. In fact,
Japan was the first country to have
the institutional arrangement of
Joint Business Council with FICCI.
Over the years, IJBCC - being jointly
organized by FICCI and JCCI, Japan
Chamber of Commerce and
Industry - has evolved and became
an important platform to stimulate
bilateral trade, investments and
technological transfers.
To participate in the 38th Joint
Meeting of IJBCC, a high-powered
FICCI Mission led by Onkar S
Kanwar, Past President, FICCI and
CMD, Apollo Tyres, visited Japan in
the first week of September to
The India-Japan
Comprehensive
Economic Partnership
Agreement (CEPA)
signed in February
2011, promises to
boost trade to US$ 25
billion by 2014.
L to R: Arun Goyal, Minister Economic &
Commercial, Embassy of India in Japan;
Rohit Relan, Co-chairman India Japan
JBC & Managing Director Bharat Seats
Ltd; Yuko Obuchi, Senior Vice Minister for
Finance, Japan; Ambika Sharma, Deputy
Secretary General, FICCI; Ranjit
Barthakur, Chairman, Globally Managed
Services and Atul Shunglu, Assistant
Secretary General, FICCI.
boost the prospects of cooperation
in areas such as SMEs and sought
greater flow of capital from Japan
to India as infusion of external
financial resources has become the
lifeline of emerging economies.
It was also the largest-ever FICCI
business delegation to Japan,
comprising 70 companies and over
100 participants from diversified
sectors and represented by the
captains of industry, business
heads, senior state government
officials and top consultants.
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. FICCI has been
instrumental in this calibration and
had led several initiatives to
stimulate bilateral trade,
investments and technological
transfers.
September 2013 17n nFICCI Business Digest
In the railway sector, the Iraqis
have welcomed the expression of
interest by IRCON in turnkey
execution of railway projects in Iraq
including civil and track works,
electrification, signalling, setting up
of workshops/production units for
rolling stock and its supply.
Keeping in view the demand for
low-cost housing in Iraq, both sides
will now explore the possibilities of
involvement of Indian public and
private sector companies in the
low-cost housing sector in Iraq.
Both India and Iraq have agreed
to cooperate in agricultural
education and research activities
through signing of an appropriate
institutional framework MOU for
mutual benefit.
An MOU on water resource
management between India and
Iraq has opened up the prospects
of cooperation through
collaboration and sharing of
experience and expertise between
the two sides.
India has already been active in
the area of capacity building in
Iraq, including in higher education
and healthcare. Keeping in view the
increasing number of Iraqi
nationals visiting India for
medicare, the two sides can look at
exchange of health personnel,
medical personnel, nursing
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
these fields would establish the
crucial institutional framework to
enhance co-operation in the
identified areas and boost
economic and trade relations.
As both countries seek to
increase their oil trade and expand
cooperation in other areas,
including agriculture, India and Iraq
are open to considering the
possibility of trading in their
currencies. A local currency
payment mechanism will insulate
India's oil purchases from the sharp
fluctuations in the rupee value
against the dollar and save traders
from exchange rate losses. With the
gains out of such an arrangement
becoming apparent to both, India
and Iraq, according to Commerce
and Industry Minister Anand
Sharma, are exploring the
possibility of trading in their local
currencies - dinar and rupee and
the officials are expected to take up
discussions on this.
The Iraq Government's overtures
demonstrate that India remains a
non-polarising factor in Iraq's
foreign policy and our relations go
beyond oil. The two countries now
need to jointly rebuild on the
mutuality of their current interests
in the region and globally. n
petrochemical complexes and
fertiliser plants.
The MoU signed between India
and Iraq on cooperation in the field
of energy is expected to provide a
strong framework to further
diversify cooperation. The stage
has been set with Iraq expressing a
desire for Indian companies such as
IOC, RIL etc to participate in the
setting up of the planned five new
refineries. Iraq has also agreed to
consider India's proposal for a
long-term (10-year) pact to meet
the increased crude oil demand by
the new refineries and also
consider India's request for better
terms, including abolition of Line of
Credit requirement and an increase
in interest-free credit period from
30 to 60 days.
In the steel sector, greater
cooperation would include joint
ventures to set up steel plant in
Iraq or in India for production of
steel pipes with the purpose of
transporting oil in Iraq. In power,
recognising the existing capabilities
of BHEL in manufacturing gas
turbine units, the Iraqi side has
agreed to include BHEL as a
qualified equipment manufacturer
for its power sector.
16 FICCI Business Digest n n September 2013
Anand Sharma, India's Commerce and Industry Minister shaking hands with
Kamil al-Maliki, Prime Minister of Iraq (2nd from right). Also seen is Naina Lal Kidwai,
President, FICCI.
FICCI delegation explores prospects of cooperation in SMEs and greater flow of capital from Japan
hen Japan was cruising
on one of the most Wrapid growth
trajectories in the Japanese
economic history in the 1960s
surpassing Germany to become the
second largest economy in the
world, FICCI was the first business
chamber to set up a bilateral
mechanism, the India-Japan
Business Cooperation Committee
(IJBCC) in 1966, for engagement
between the two countries. In fact,
Japan was the first country to have
the institutional arrangement of
Joint Business Council with FICCI.
Over the years, IJBCC - being jointly
organized by FICCI and JCCI, Japan
Chamber of Commerce and
Industry - has evolved and became
an important platform to stimulate
bilateral trade, investments and
technological transfers.
To participate in the 38th Joint
Meeting of IJBCC, a high-powered
FICCI Mission led by Onkar S
Kanwar, Past President, FICCI and
CMD, Apollo Tyres, visited Japan in
the first week of September to
The India-Japan
Comprehensive
Economic Partnership
Agreement (CEPA)
signed in February
2011, promises to
boost trade to US$ 25
billion by 2014.
L to R: Arun Goyal, Minister Economic &
Commercial, Embassy of India in Japan;
Rohit Relan, Co-chairman India Japan
JBC & Managing Director Bharat Seats
Ltd; Yuko Obuchi, Senior Vice Minister for
Finance, Japan; Ambika Sharma, Deputy
Secretary General, FICCI; Ranjit
Barthakur, Chairman, Globally Managed
Services and Atul Shunglu, Assistant
Secretary General, FICCI.
boost the prospects of cooperation
in areas such as SMEs and sought
greater flow of capital from Japan
to India as infusion of external
financial resources has become the
lifeline of emerging economies.
It was also the largest-ever FICCI
business delegation to Japan,
comprising 70 companies and over
100 participants from diversified
sectors and represented by the
captains of industry, business
heads, senior state government
officials and top consultants.
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. FICCI has been
instrumental in this calibration and
had led several initiatives to
stimulate bilateral trade,
investments and technological
transfers.
September 2013 17n nFICCI Business Digest
18 FICCI Business Digest n n September 2013
B2B meetings in progress.
Even as businesses from both
sides got connected and tried to
build bridges of partnership
through more than 250 business-
to-business interactions held
during this mission, the overall
objective of FICCI’s strategy has
been to impart greater substance
to the steadily expanding economic
relations. Bilateral trade between
Indian and Japan has seen
substantial growth over the years
and reached US$ 18.6 billion in
2012-13. The India-Japan
Comprehensive Economic
Partnership Agreement (CEPA)
signed in February 2011, promises
to boost trade to US$ 25 billion by
2014.
In these days of tumultuous
financial markets, India could turn
to one of its time-trusted friends,
Japan, and attract long-term capital
given our higher interest rates.
Japan too is looking at India as a
potential investment destination
with the growing attractiveness of
the Indian consumer market
buttressed by a new wave of
economic reforms. There are
already close to 1000 Japanese
companies in India with
investments worth US$ 14.75
billion.
To deepen our engagement with
Japan and draw more and more
SMEs into the Indian market, FICCI
has come out with a ‘Guide for
Investment in India’ in a joint
endeavour with Amarchand
Mangaldas. This report was
released at the 38th Joint Meeting
of the India-Japan Business
Cooperation Committee on
September 4, 2013 in Tokyo and
will be a valuable reference
document for Japanese companies
eyeing the Indian market or
planning business expansion in
India.
Japan could well look at
manufacturing, the next big
opportunity in India. India is
looking at the creation of several
National Investment and
Manufacturing Zones to revamp
the ailing manufacturing sector,
create jobs and turn around the
Indian economy. There is
opportunity to draw FDI in the
setting up of these zones, 12 of
which have been approved and
seven of which are along the Delhi-
Mumbai Industrial Corridor (DMIC).
India today faces the need to
focus on SMEs and enhance the
use of technology and innovation
to upgrade them. The medium-
sized players from Japan have
cutting-edge technology. By
foraying into the Indian market,
these players can help local
manufacturers to become more
competitive through technology
transfers, creating more
employment opportunities and
human resources development.
India also offers huge
opportunities for infrastructure.
Japan already has a commitment of
US$ 4.5 billion for the ambitious
US$ 100 billion DMIC. The project
will have nine mega industrial
zones, high speed freight lines,
three ports, six airports, a six-lane
intersection-free expressway
connecting the country’s political
and financial capitals, and a 4000
MW power plant.
The Japanese could also bring in
their technology and experience in
the setting up of an entire
integrated value chain in the food
processing sector. The other major
area of collaboration could be
energy. With Japan now open to
development of nuclear energy in
India, the estimated US$ 100 billion
Indian nuclear energy market could
be an attractive prospect for
Mitsubishi, Hitachi and Toshiba,
which can bring their advance civil
nuclear energy technologies to
India and set up projects.
The delegation visited state-of-
the-art facilities of Toshiba and
Taisei Technology Center in
Yokohama to understand the latest
technologies in the field of green
technology, ICT and digital
products.
The delegation met Takakazu
Ishii, Governor, Toyama prefecture
where the government mentioned
about the shooting of an Indian
Film in Toyama and invited
producers from Bollywood for
shooting their films in Toyama.
There is a great creative potential
for both the countries in many
areas which remains to be tapped. n
September 2013 19n nFICCI Business Digest
nergy Security forms the
bedrock of a nation's Eeconomic activity. In an
emerging economy such as India
this holds truer than ever. An ever
increasing manufacturing sector, a
growing vehicular population,
growing power demand across all
sectors imply the necessity of an
assured and economically viable
energy supplies for India.
India, whose oil imports
constitute 80 per cent of the total
consumption, has been taking
concerted initiatives across the
energy value chain to ease the
strain on our supplies. With the
Need to to all atprovide energy affordable prices; open markets with safety nets for vulnerable sections vital
L to R: Salman Khurshid, Minister of External Affairs; Naina Lal Kidwai, President,
FICCI; R S Sharma, Chairman, FICCI Hydrocarbon Committee and former CMD, ONGC
and B C Tripathi, Co-Chair, FICCI Hydrocarbon Committee and CMD, GAIL (India) Ltd.
18 FICCI Business Digest n n September 2013
B2B meetings in progress.
Even as businesses from both
sides got connected and tried to
build bridges of partnership
through more than 250 business-
to-business interactions held
during this mission, the overall
objective of FICCI’s strategy has
been to impart greater substance
to the steadily expanding economic
relations. Bilateral trade between
Indian and Japan has seen
substantial growth over the years
and reached US$ 18.6 billion in
2012-13. The India-Japan
Comprehensive Economic
Partnership Agreement (CEPA)
signed in February 2011, promises
to boost trade to US$ 25 billion by
2014.
In these days of tumultuous
financial markets, India could turn
to one of its time-trusted friends,
Japan, and attract long-term capital
given our higher interest rates.
Japan too is looking at India as a
potential investment destination
with the growing attractiveness of
the Indian consumer market
buttressed by a new wave of
economic reforms. There are
already close to 1000 Japanese
companies in India with
investments worth US$ 14.75
billion.
To deepen our engagement with
Japan and draw more and more
SMEs into the Indian market, FICCI
has come out with a ‘Guide for
Investment in India’ in a joint
endeavour with Amarchand
Mangaldas. This report was
released at the 38th Joint Meeting
of the India-Japan Business
Cooperation Committee on
September 4, 2013 in Tokyo and
will be a valuable reference
document for Japanese companies
eyeing the Indian market or
planning business expansion in
India.
Japan could well look at
manufacturing, the next big
opportunity in India. India is
looking at the creation of several
National Investment and
Manufacturing Zones to revamp
the ailing manufacturing sector,
create jobs and turn around the
Indian economy. There is
opportunity to draw FDI in the
setting up of these zones, 12 of
which have been approved and
seven of which are along the Delhi-
Mumbai Industrial Corridor (DMIC).
India today faces the need to
focus on SMEs and enhance the
use of technology and innovation
to upgrade them. The medium-
sized players from Japan have
cutting-edge technology. By
foraying into the Indian market,
these players can help local
manufacturers to become more
competitive through technology
transfers, creating more
employment opportunities and
human resources development.
India also offers huge
opportunities for infrastructure.
Japan already has a commitment of
US$ 4.5 billion for the ambitious
US$ 100 billion DMIC. The project
will have nine mega industrial
zones, high speed freight lines,
three ports, six airports, a six-lane
intersection-free expressway
connecting the country’s political
and financial capitals, and a 4000
MW power plant.
The Japanese could also bring in
their technology and experience in
the setting up of an entire
integrated value chain in the food
processing sector. The other major
area of collaboration could be
energy. With Japan now open to
development of nuclear energy in
India, the estimated US$ 100 billion
Indian nuclear energy market could
be an attractive prospect for
Mitsubishi, Hitachi and Toshiba,
which can bring their advance civil
nuclear energy technologies to
India and set up projects.
The delegation visited state-of-
the-art facilities of Toshiba and
Taisei Technology Center in
Yokohama to understand the latest
technologies in the field of green
technology, ICT and digital
products.
The delegation met Takakazu
Ishii, Governor, Toyama prefecture
where the government mentioned
about the shooting of an Indian
Film in Toyama and invited
producers from Bollywood for
shooting their films in Toyama.
There is a great creative potential
for both the countries in many
areas which remains to be tapped. n
September 2013 19n nFICCI Business Digest
nergy Security forms the
bedrock of a nation's Eeconomic activity. In an
emerging economy such as India
this holds truer than ever. An ever
increasing manufacturing sector, a
growing vehicular population,
growing power demand across all
sectors imply the necessity of an
assured and economically viable
energy supplies for India.
India, whose oil imports
constitute 80 per cent of the total
consumption, has been taking
concerted initiatives across the
energy value chain to ease the
strain on our supplies. With the
Need to to all atprovide energy affordable prices; open markets with safety nets for vulnerable sections vital
L to R: Salman Khurshid, Minister of External Affairs; Naina Lal Kidwai, President,
FICCI; R S Sharma, Chairman, FICCI Hydrocarbon Committee and former CMD, ONGC
and B C Tripathi, Co-Chair, FICCI Hydrocarbon Committee and CMD, GAIL (India) Ltd.
20 FICCI Business Digest n n September 2013
economic stabilisation of Iraq after
the recent political turmoil, the
country is poised to play a key role
in India's oil supply equation,
particularly after the shift from
export of hydrocarbon volumes
from United States to east in recent
times. Similarly the feasibility of
energy imports via pipelines and
LNG carriers via Central Asia also
hold considerable significance.
The discovery and production of
unconventional hydrocarbons,
specifically Shale Gas and Shale Oil,
has been upended the energy
supply-demand fundamentals
across the Western hemisphere.
This will also have greater
implications in the coming years
with the likely commencement of
US LNG exports to India and other
countries in the region.
In this backdrop, FICCI in
collaboration with the Ministry of
External Affairs (MEA) successfully
concluded the 3rd National
Conference on Energy Security,
highlighting the various important
factors affecting India's energy
calculus in the near future.
At the inaugural session, Salman
Khurshid, Minister of External
Affairs, stated that the Government
was committed to ensuring energy
equity by striking the right balance
between energy security and
making available energy supplies to
all at affordable prices.
Inaugurating the 3rd National
September 2013 21n nFICCI Business Digest
Conference on Energy Security,
organised jointly by FICCI and the
Ministry of External Affairs,
Khurshid said that decontrol of fuel
prices and opening up of the
markets was essential to achieve
rapid growth. "There is a price to be
paid for freedom," he said and
added that India will not depart
from providing safety nets for the
vulnerable sections of the people.
"The provision of safety nets is
not only a political commitment
but a humanitarian consideration
to make open markets work," he
said. These safety nets come in the
shape of affordable housing,
quality education, 100 days of
guaranteed work and now the
provision of subsidised nutritious
food to 67 per cent of the
population, he declared.
The Minister said industry had a
role in directly sensitising and
educating the judiciary, which at
the present moment is guided by
legal thinking. Law without
economic analysis is meaningless.
In the modern world where
diplomacy equals economy, the
benefit of economic analysis must
be available to the Supreme Court
just as it happens in the US.
Khurshid urged the public and
private sector energy leaders to
move forward with a spirit of
adventure and not get bogged
down by the fear of making
mistakes. Mistakes that are made
bona fide and through honest work
should not be punished, he
declared.
The Government, he said, was
laying emphasis on using domestic
resources fully to moderate the
impact of the vagaries of the
international market. The Cabinet
Committee on Investment (CCI) has
cleared 31 of the 40 NELP blocks in
a single month up to April 2013.
These clearances would not only
put to use an investment of US$
13.42 billion (Rs. 73179.26 crore)
already made but will also bring in
additional investment of about US$
2.5 billion (Rs. 13632 crore) in the
3-5 years in exploration activities.
On discovery of hydrocarbons,
huge investment is expected in
developing these blocks. Out of
3,32,960 sq km area covered by
these 40 blocks 2,66,463 sq km in
31 blocks would now be available
for exploration and production
activities. This was also an
important signal to foreign players
to make investment in Indian oil
and gas blocks, he said.
India, he said, has also taken
significant strides in the
development on unconventional
sources of energy like coal bed
methane. CBM policy was
formulated in 1997 and the first
round of blocks were offered in
2001. Four rounds of bidding for
CBM blocks have already taken
place in which 33 CBM blocks have
been awarded to 8 public and
private sector players. Indian basins
also seem prospective for shale
resources and its assessment is
underway and shale resources
exploration policy is likely to be
announced soon.
India's pipeline infrastructure is
set to increase to almost 26000 km
by 2015. Similarly with respect to
power infrastructure, with the
Southern grid likely to get
connected to the already
connected grid of East, West and
North India by early next year, a
national transmission grid will be
formed, which will bring higher
efficiency in power transmission.
“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 a equitable
balance, what you have indeed is a broad based
support, and that broad based support will come if
you have a sustainable model which supports equity
along with the traditional security issues which we
speak of.”
“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 FICCI Business Digest n n September 2013
economic stabilisation of Iraq after
the recent political turmoil, the
country is poised to play a key role
in India's oil supply equation,
particularly after the shift from
export of hydrocarbon volumes
from United States to east in recent
times. Similarly the feasibility of
energy imports via pipelines and
LNG carriers via Central Asia also
hold considerable significance.
The discovery and production of
unconventional hydrocarbons,
specifically Shale Gas and Shale Oil,
has been upended the energy
supply-demand fundamentals
across the Western hemisphere.
This will also have greater
implications in the coming years
with the likely commencement of
US LNG exports to India and other
countries in the region.
In this backdrop, FICCI in
collaboration with the Ministry of
External Affairs (MEA) successfully
concluded the 3rd National
Conference on Energy Security,
highlighting the various important
factors affecting India's energy
calculus in the near future.
At the inaugural session, Salman
Khurshid, Minister of External
Affairs, stated that the Government
was committed to ensuring energy
equity by striking the right balance
between energy security and
making available energy supplies to
all at affordable prices.
Inaugurating the 3rd National
September 2013 21n nFICCI Business Digest
Conference on Energy Security,
organised jointly by FICCI and the
Ministry of External Affairs,
Khurshid said that decontrol of fuel
prices and opening up of the
markets was essential to achieve
rapid growth. "There is a price to be
paid for freedom," he said and
added that India will not depart
from providing safety nets for the
vulnerable sections of the people.
"The provision of safety nets is
not only a political commitment
but a humanitarian consideration
to make open markets work," he
said. These safety nets come in the
shape of affordable housing,
quality education, 100 days of
guaranteed work and now the
provision of subsidised nutritious
food to 67 per cent of the
population, he declared.
The Minister said industry had a
role in directly sensitising and
educating the judiciary, which at
the present moment is guided by
legal thinking. Law without
economic analysis is meaningless.
In the modern world where
diplomacy equals economy, the
benefit of economic analysis must
be available to the Supreme Court
just as it happens in the US.
Khurshid urged the public and
private sector energy leaders to
move forward with a spirit of
adventure and not get bogged
down by the fear of making
mistakes. Mistakes that are made
bona fide and through honest work
should not be punished, he
declared.
The Government, he said, was
laying emphasis on using domestic
resources fully to moderate the
impact of the vagaries of the
international market. The Cabinet
Committee on Investment (CCI) has
cleared 31 of the 40 NELP blocks in
a single month up to April 2013.
These clearances would not only
put to use an investment of US$
13.42 billion (Rs. 73179.26 crore)
already made but will also bring in
additional investment of about US$
2.5 billion (Rs. 13632 crore) in the
3-5 years in exploration activities.
On discovery of hydrocarbons,
huge investment is expected in
developing these blocks. Out of
3,32,960 sq km area covered by
these 40 blocks 2,66,463 sq km in
31 blocks would now be available
for exploration and production
activities. This was also an
important signal to foreign players
to make investment in Indian oil
and gas blocks, he said.
India, he said, has also taken
significant strides in the
development on unconventional
sources of energy like coal bed
methane. CBM policy was
formulated in 1997 and the first
round of blocks were offered in
2001. Four rounds of bidding for
CBM blocks have already taken
place in which 33 CBM blocks have
been awarded to 8 public and
private sector players. Indian basins
also seem prospective for shale
resources and its assessment is
underway and shale resources
exploration policy is likely to be
announced soon.
India's pipeline infrastructure is
set to increase to almost 26000 km
by 2015. Similarly with respect to
power infrastructure, with the
Southern grid likely to get
connected to the already
connected grid of East, West and
North India by early next year, a
national transmission grid will be
formed, which will bring higher
efficiency in power transmission.
“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 a equitable
balance, what you have indeed is a broad based
support, and that broad based support will come if
you have a sustainable model which supports equity
along with the traditional security issues which we
speak of.”
“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
22 FICCI Business Digest n n September 2013
He said, "Our domestic energy
resources however are limited and
a large percentage of our oil and
gas and increasingly coal, is
procured from the international
market. In this scenario, the
government is also encouraging
our energy companies to acquire
assets abroad. India is looking at
other prospective and emerging
LNG suppliers like Canada,
Mozambique, Tanzania, Russia and
CIS, Australia and Papua New
Guinea. With the recent off-shore
natural gas discoveries, East Africa
has emerged as one of the hottest
exploration place in the world.
Sourcing of LNG from East Africa
which is in close proximity to Indian
market would not only provide
much-needed diversity to Indian
LNG imports but also save shipping
costs."
CIS countries like Kazakhstan and
Turkmenistan which are also not
very far away from Indian northern
states can also become significant
suppliers of energy in future. To
make this a reality, India is also
pursuing Turkmenistan-
Afghanistan-Pakistan-India (TAPI)
pipeline project, which will bring
Turkmen gas to India.
Naina Lal Kidwai, President, FICCI,
said that India was going through a
tough economic phase, with the
rising crude oil prices coupled with
a depreciating rupee, straining
India's limited forex reserves and
also having repercussions on India's
economy at large. However, she
noted that the nation had more
than enough ability and resources
to overcome these challenges and
cited rapid advances towards
improvement in automotive
technology, increasing energy
efficiency, developments in
international arena towards
increasing India's conventional and
non-conventional resources foretell
a robust energy landscape for
India. n
September 2013 23n nFICCI Business Digest
Key Takeaways
§India needs to develop a cadre of professionals who
would aggressively promote and secure India's Oil &
Gas and Power interests outside of India. Having a
cadre of energy diplomats drawn from a spectrum of
industries would help in objectively communicating
India's energy requirements to the outside world and
help focus efforts towards capacity building in other
nations on a compressed timeline
§Middle East and North Africa (MENA) region
constitutes about 65 per cent of India's oil supply,
hence an increased economic footprint in the region is
vital for a long term engagement
§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
§India's strength in having a large pool of well qualified
personnel, with companies having many decades of
experience in EPC and manufacturing services allow us
to offer a diverse array of services to our middle
eastern partners
§While unconventional Oil & Gas, specifically Shale Gas
has changed the energy landscape in United States and
impacted the energy trade dynamics in rest of the
world, India is looking at an integrated development
model, which includes production of both
conventional and unconventional hydrocarbons from a
given block. This serves to maximise the energy yield
from a block, while focusing our limited resources in
an effective fashion
§Various policy and infrastructural enablers, focusing on
conventional and non-conventional energy sources,
which would encourage private investment and also
give a fillip to domestic production must be duly
facilitated
“Solar and Wind energy still remain expensive and
controversial even elsewhere in the world, but I think
the models which are being attempted in Europe must
be tried here as well. If people are willing to give their
lands and work in collaboration with Government
agencies for Wind Mills then such opportunities
should be crystallised. Solar, of course has great
potential in the country, and is the big answer.”
Salman Khurshid, Minister of External Affairs
22 FICCI Business Digest n n September 2013
He said, "Our domestic energy
resources however are limited and
a large percentage of our oil and
gas and increasingly coal, is
procured from the international
market. In this scenario, the
government is also encouraging
our energy companies to acquire
assets abroad. India is looking at
other prospective and emerging
LNG suppliers like Canada,
Mozambique, Tanzania, Russia and
CIS, Australia and Papua New
Guinea. With the recent off-shore
natural gas discoveries, East Africa
has emerged as one of the hottest
exploration place in the world.
Sourcing of LNG from East Africa
which is in close proximity to Indian
market would not only provide
much-needed diversity to Indian
LNG imports but also save shipping
costs."
CIS countries like Kazakhstan and
Turkmenistan which are also not
very far away from Indian northern
states can also become significant
suppliers of energy in future. To
make this a reality, India is also
pursuing Turkmenistan-
Afghanistan-Pakistan-India (TAPI)
pipeline project, which will bring
Turkmen gas to India.
Naina Lal Kidwai, President, FICCI,
said that India was going through a
tough economic phase, with the
rising crude oil prices coupled with
a depreciating rupee, straining
India's limited forex reserves and
also having repercussions on India's
economy at large. However, she
noted that the nation had more
than enough ability and resources
to overcome these challenges and
cited rapid advances towards
improvement in automotive
technology, increasing energy
efficiency, developments in
international arena towards
increasing India's conventional and
non-conventional resources foretell
a robust energy landscape for
India. n
September 2013 23n nFICCI Business Digest
Key Takeaways
§India needs to develop a cadre of professionals who
would aggressively promote and secure India's Oil &
Gas and Power interests outside of India. Having a
cadre of energy diplomats drawn from a spectrum of
industries would help in objectively communicating
India's energy requirements to the outside world and
help focus efforts towards capacity building in other
nations on a compressed timeline
§Middle East and North Africa (MENA) region
constitutes about 65 per cent of India's oil supply,
hence an increased economic footprint in the region is
vital for a long term engagement
§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
§India's strength in having a large pool of well qualified
personnel, with companies having many decades of
experience in EPC and manufacturing services allow us
to offer a diverse array of services to our middle
eastern partners
§While unconventional Oil & Gas, specifically Shale Gas
has changed the energy landscape in United States and
impacted the energy trade dynamics in rest of the
world, India is looking at an integrated development
model, which includes production of both
conventional and unconventional hydrocarbons from a
given block. This serves to maximise the energy yield
from a block, while focusing our limited resources in
an effective fashion
§Various policy and infrastructural enablers, focusing on
conventional and non-conventional energy sources,
which would encourage private investment and also
give a fillip to domestic production must be duly
facilitated
“Solar and Wind energy still remain expensive and
controversial even elsewhere in the world, but I think
the models which are being attempted in Europe must
be tried here as well. If people are willing to give their
lands and work in collaboration with Government
agencies for Wind Mills then such opportunities
should be crystallised. Solar, of course has great
potential in the country, and is the big answer.”
Salman Khurshid, Minister of External Affairs
24 FICCI Business Digest n n September 2013
FICCI signs 2 MoUs for adopting trigeneration and energy efficiency technologies
Two Memoranda of
Understanding (MoUs) were signed
in New Delhi on August 26, 2013.
One amongst the Federation of
Indian Chambers of Commerce and
Industry (FICCI), Energy Efficiency
Services Limited (EESL) and
Deutsche Gesellschaft für
Internationale Zusammenarbeit
(GIZ) and another between FICCI
and EESL.
The MoU amongst FICCI, EESL
and GIZ will explore the feasibility
of implementing a project on
trigeneration simultaneous
production of electricity, heating
and cooling at the Federation
House (FICCI Headquarters) in New
Delhi.
GIZ through a demonstration
project financed by the
International Climate Initiative (ICI)
of the German Federal Ministry for
the Environment, Nature
Conservation and Nuclear Safety
(BMU) in cooperation with the
Indian Bureau of Energy Efficiency
(BEE) has successfully
demonstrated the advantages of
the trigeneration technology at Jai
Prakash Apex Trauma Center
(JPATC) in New Delhi.
FICCI is interested in adopting
this technology in the Federation
House to save energy compared
with the present technology in use.
EESL, on its part, is willing to
promote this energy efficient
technology through an ESCO
business model as a pilot project
which can then be replicated with
other partners in India.
According to the MoU between
FICCI and EESL, FICCI will support
the initiative of the EESL to develop
power market for optimal
utilisation of energy and existing
resources. EESL is a joint venture of
new beginning has been
made in fostering Acollaboration in the PPP
mode for giving a fillip to energy
efficiency, conservation and
management of demand.
This assumes high importance as
India is already the world's fourth
largest consumer of energy. Experts
believe that the current energy
demand could increase twofold by
2030. Import dependence has also
constantly been rising. Already
more than 70 per cent of
petroleum is being imported. It is
becoming increasingly difficult to
meet the fuel demand, especially
for gas power plants. National
energy supply is not able to keep
pace with the current six per cent
growth rate of the Indian
economy. In order to keep
import dependency in the
conventional energy sector as
low as possible, strategies for
enhancing energy efficiency and
utilising renewable energy are
increasingly becoming the focus
of India's energy policy.
Dr. Arbind Prasad, Director General,
FICCI and Jens Burgtorf, Director, Indo
German Energy Program (IGEN), GIZ,
exchanging a MoU.
September 2013 25n nFICCI Business Digest
four Central Public Sector
Undertakings of Ministry of Power,
Government of India - NTPC
Limited, Powergrid Corporation of
India Limited, Power Finance
Corporation and Rural
Electrification Corporation.
This MoU is aimed at market
development and implementation
functions of the National Mission
for Enhanced Energy Efficiency
(NMEEE) which seeks to unlock the
energy efficiency market of Rs.
74000 crore.
EESL shall provide its experience
in evolving amenable policy
instruments and arranging
technical expertise required to
promote energy efficiency as per
the work plan approved by the
government. It will associate with
FICCI in developing ESCO/CDM
projects.
The MoUs were signed and
exchanged during a workshop on
'Trigeneration Technology -
Promotion of Energy Efficiency in
Indian Building Sector' organised
by FICCI in collaboration with the
BEE, Indo German Energy Forum
(IGEF), GIZ, KfW and EESL.
While addressing the workshop,
Dr. Ajay Mathur, Director General,
BEE, said it was the first formal
outreach of trigeneration
technology. He said, "Trigeneration
technology is feasible, economically
viable, environment-friendly and
also provides natural resources
efficiency." Highlighting the
advantages of the technology, he
stated that a building benefits
because the reliability of energy
supply increases and there is
evidence of reduction in the
electricity bill. It helps the city in
reducing the load during peak
hours. The country benefits as it
results in lowering imports demand
and CO emissions. 2
Dr. Mathur pointed out that both
new and fully operational buildings
and facilities can adopt this
technology. Though the capital cost
is high but it could be recovered in
three years. Provisions for providing
a funding package may also be
worked out for those who are keen
to adopt this technology.
Bhaskar Jyoti Sarma, Secretary,
BEE, said that trigeneration would
not only save money but will
reduce carbon footprint
considerably. In India, there is a
need to adopt this technology
because in spite of having the
highest coal reserves, we have been
unable to harness its full potential.
He informed that almost 50 per
cent of the coal that is used for
thermal power generation consists
of ash. Hence, in such a scenario,
trigenertaion is not only efficient
but is also environment-friendly.
Jens Burgtorf, Director, Indo
German Energy Program (IGEN),
GIZ, underlined the requirements
for setting up trigeneration such as
need for 24x7 operational building
with simultaneous electricity,
heating and cooling, space
availability in the existing building,
possibility of centralised cooling,
availability of natural gas and
significant power failure for
attractive return on investment.
The pilot plant has three main
components viz. gas engine, vapour
absorption machine (VAM) and
centrifugal chiller. The waste heat
produced during the power
production from gas engine is
recovered for cooling through VAM
and low temperature water is used
for applications like kitchen,
laundry and swimming pool
heating. The technology is suitable
for buildings that have
simultaneous cooling and heating
load, explained Burgtorf.
Dr. Arbind Prasad, Director
General, FICCI, said that air
conditioners are a big source of
energy consumption with
temperatures usually reaching over
40°C in summer. Trigeneration
technology, i.e. the simultaneous
production of electricity and
cooling through absorption chillers
in summer or electricity and
heating in winter, is by and large
unknown in India and not
sufficiently tested. The efficiency of
the system reached up to 85 per
cent or more by recovering waste
heat for heating and cooling
purpose. This technology has a
large potential in India. The most
promising sectors for this
technology are hotels, hospitals,
airports, shopping malls, office and
complexes.
The session was also addressed
by Saurabh Kumar, Managing
Director, EESL; Markus Wypior,
Director, Indo German Energy
Forum (IGEF) and Deepak Bhutale,
Assistant Engineer, JPNATC, who
explained the technical and
practical aspects of the JPNATC,
which is the first pilot plant of
trigeneration technology. n
New and fully operational buildings and facilities
can adopt trigeneration technology. Though the
capital cost is high but it could be recovered in
three years.
24 FICCI Business Digest n n September 2013
FICCI signs 2 MoUs for adopting trigeneration and energy efficiency technologies
Two Memoranda of
Understanding (MoUs) were signed
in New Delhi on August 26, 2013.
One amongst the Federation of
Indian Chambers of Commerce and
Industry (FICCI), Energy Efficiency
Services Limited (EESL) and
Deutsche Gesellschaft für
Internationale Zusammenarbeit
(GIZ) and another between FICCI
and EESL.
The MoU amongst FICCI, EESL
and GIZ will explore the feasibility
of implementing a project on
trigeneration simultaneous
production of electricity, heating
and cooling at the Federation
House (FICCI Headquarters) in New
Delhi.
GIZ through a demonstration
project financed by the
International Climate Initiative (ICI)
of the German Federal Ministry for
the Environment, Nature
Conservation and Nuclear Safety
(BMU) in cooperation with the
Indian Bureau of Energy Efficiency
(BEE) has successfully
demonstrated the advantages of
the trigeneration technology at Jai
Prakash Apex Trauma Center
(JPATC) in New Delhi.
FICCI is interested in adopting
this technology in the Federation
House to save energy compared
with the present technology in use.
EESL, on its part, is willing to
promote this energy efficient
technology through an ESCO
business model as a pilot project
which can then be replicated with
other partners in India.
According to the MoU between
FICCI and EESL, FICCI will support
the initiative of the EESL to develop
power market for optimal
utilisation of energy and existing
resources. EESL is a joint venture of
new beginning has been
made in fostering Acollaboration in the PPP
mode for giving a fillip to energy
efficiency, conservation and
management of demand.
This assumes high importance as
India is already the world's fourth
largest consumer of energy. Experts
believe that the current energy
demand could increase twofold by
2030. Import dependence has also
constantly been rising. Already
more than 70 per cent of
petroleum is being imported. It is
becoming increasingly difficult to
meet the fuel demand, especially
for gas power plants. National
energy supply is not able to keep
pace with the current six per cent
growth rate of the Indian
economy. In order to keep
import dependency in the
conventional energy sector as
low as possible, strategies for
enhancing energy efficiency and
utilising renewable energy are
increasingly becoming the focus
of India's energy policy.
Dr. Arbind Prasad, Director General,
FICCI and Jens Burgtorf, Director, Indo
German Energy Program (IGEN), GIZ,
exchanging a MoU.
September 2013 25n nFICCI Business Digest
four Central Public Sector
Undertakings of Ministry of Power,
Government of India - NTPC
Limited, Powergrid Corporation of
India Limited, Power Finance
Corporation and Rural
Electrification Corporation.
This MoU is aimed at market
development and implementation
functions of the National Mission
for Enhanced Energy Efficiency
(NMEEE) which seeks to unlock the
energy efficiency market of Rs.
74000 crore.
EESL shall provide its experience
in evolving amenable policy
instruments and arranging
technical expertise required to
promote energy efficiency as per
the work plan approved by the
government. It will associate with
FICCI in developing ESCO/CDM
projects.
The MoUs were signed and
exchanged during a workshop on
'Trigeneration Technology -
Promotion of Energy Efficiency in
Indian Building Sector' organised
by FICCI in collaboration with the
BEE, Indo German Energy Forum
(IGEF), GIZ, KfW and EESL.
While addressing the workshop,
Dr. Ajay Mathur, Director General,
BEE, said it was the first formal
outreach of trigeneration
technology. He said, "Trigeneration
technology is feasible, economically
viable, environment-friendly and
also provides natural resources
efficiency." Highlighting the
advantages of the technology, he
stated that a building benefits
because the reliability of energy
supply increases and there is
evidence of reduction in the
electricity bill. It helps the city in
reducing the load during peak
hours. The country benefits as it
results in lowering imports demand
and CO emissions. 2
Dr. Mathur pointed out that both
new and fully operational buildings
and facilities can adopt this
technology. Though the capital cost
is high but it could be recovered in
three years. Provisions for providing
a funding package may also be
worked out for those who are keen
to adopt this technology.
Bhaskar Jyoti Sarma, Secretary,
BEE, said that trigeneration would
not only save money but will
reduce carbon footprint
considerably. In India, there is a
need to adopt this technology
because in spite of having the
highest coal reserves, we have been
unable to harness its full potential.
He informed that almost 50 per
cent of the coal that is used for
thermal power generation consists
of ash. Hence, in such a scenario,
trigenertaion is not only efficient
but is also environment-friendly.
Jens Burgtorf, Director, Indo
German Energy Program (IGEN),
GIZ, underlined the requirements
for setting up trigeneration such as
need for 24x7 operational building
with simultaneous electricity,
heating and cooling, space
availability in the existing building,
possibility of centralised cooling,
availability of natural gas and
significant power failure for
attractive return on investment.
The pilot plant has three main
components viz. gas engine, vapour
absorption machine (VAM) and
centrifugal chiller. The waste heat
produced during the power
production from gas engine is
recovered for cooling through VAM
and low temperature water is used
for applications like kitchen,
laundry and swimming pool
heating. The technology is suitable
for buildings that have
simultaneous cooling and heating
load, explained Burgtorf.
Dr. Arbind Prasad, Director
General, FICCI, said that air
conditioners are a big source of
energy consumption with
temperatures usually reaching over
40°C in summer. Trigeneration
technology, i.e. the simultaneous
production of electricity and
cooling through absorption chillers
in summer or electricity and
heating in winter, is by and large
unknown in India and not
sufficiently tested. The efficiency of
the system reached up to 85 per
cent or more by recovering waste
heat for heating and cooling
purpose. This technology has a
large potential in India. The most
promising sectors for this
technology are hotels, hospitals,
airports, shopping malls, office and
complexes.
The session was also addressed
by Saurabh Kumar, Managing
Director, EESL; Markus Wypior,
Director, Indo German Energy
Forum (IGEF) and Deepak Bhutale,
Assistant Engineer, JPNATC, who
explained the technical and
practical aspects of the JPNATC,
which is the first pilot plant of
trigeneration technology. n
New and fully operational buildings and facilities
can adopt trigeneration technology. Though the
capital cost is high but it could be recovered in
three years.
26 FICCI Business Digest n n September 2013
CSR, a winning proposition
Though philanthropy is an age-
old concept, the term 'corporate
social responsibility' began to
emerge in the 1980s. Thereby
enlarging the responsibility of
business and shifting the focus
from just 'stockholders' to
'stakeholders'.
In the last 20 years, a large
percentage of British and American
companies have been at the
forefront of CSR activities to
demonstrate themselves as socially
responsible corporate citizens.
Both Japan and South Korea have
had a long tradition of CSR, while
emerging markets such as Brazil
have witnessed an active CSR
movement in recent times.
Nurturing CSR Spirit
Even in China, there is an
increasing realisation among
corporates to be seen as socially
responsible.
In India, the culture of
ahatma Gandhi had
stated in 1931, at FICCI's Mfourth Annual General
Meeting: "Industry should consider
themselves as trustee and servants
of the poor". This proposition holds
true to this day. Gandhiji was
reflecting on the role of business in
society and flagging a compassion
that Indian society has traditionally
shown.
Indian business has a rich history
of philanthropy and organisations
such as FICCI have long adhered to
the spirit of promoting responsible
businesses.
Today, it has become mandatory
so businesses have to identify ways
to integrate corporate social
responsibility into their business
strategies and strengthen the
delivery mechanisms to make a
genuine social impact, while
continuing to ensure their own
profitability and sustainability.
That's the challenge.
Dr. A Didar Singh*
September 2013 27n nFICCI Business Digest
philanthropy, especially among big,
family-owned businesses, has
found reflection in their active
promotion of education, healthcare
and basic services for communities.
With the recent passage of the
Companies Bill, which stipulates a
spend of two per cent of net profits
towards CSR, corporate social
responsibility will join the core
business operations of companies.
India is perhaps one of the first
countries in the world to have
mandated this, and it paves the
way for the corporate sector to play
a big role in shaping communities
and improving the national
economy.
In several countries, including
Sweden, Norway, the Netherlands,
Denmark, France, and Australia, it is
not legally mandatory to carry out
CSR activities, though there are
mandatory CSR reporting
requirements. With the inclusion of
CSR as provided in the new
companies legislation in India,
there is a lot that the corporate
sector can do to contribute to
employment, health, education and
poverty eradication.
The spirit behind the provision is
well meant and can be of immense
benefit to the society; however,
implementation could be a
challenge. The recently legislated
CSR provision, being a new
concept, needs to evolve over time.
Though many large Indian
companies have been engaged in
doing meaningful work for society,
this spirit cannot be mechanically
enforced; it needs to be cultivated
and nurtured over time.
To make such a movement
sustainable, it is important to flag
the concept of 'Shared Value'.
This dwells on the connection
between societal and economic
progress as one of the ways in
which businesses have been
working towards enhancing welfare
for society, while doing business as
usual.
This concept was initially
developed by Michael E. Porter and
Mark R. Kramer, in a December
2006 Harvard Business Review
article, "Strategy and Society: The
Link between Competitive
Advantage and Corporate Social
Responsibility."
An increasing number of
companies such as Nestle, Johnson
& Johnson, or closer home, ITC,
have already begun to successfully
embark on important shared value
initiatives.
Companies all over the world are
increasingly making this concept an
integral part of their strategy.
Creating shared value helps
contribute to society while
promoting business.
Broader Spin-offs
The benefits arising out of this
integration are manifold. It
enhances the competitiveness of a
company, while simultaneously
advancing economic and social
well-being in communities,
therefore increasing the long term
sustainability of the company.
It also enhances the possibility of
co-operation between business,
society and government.
While the new Act defines the
broad contours of CSR provision,
the final Rules or subordinate
legislation will carry the finer
details. The government has been
receptive to the legitimate concerns
of India Inc and redressal of some
practical hardships will provide the
corporate sector with a more
conducive environment to do
business and help adapt to the new
requirements.
Industry views with optimism the
assurance by the Minister of
Corporate Affairs that all steps will
be taken to ensure that CSR
expenditure is not construed as a
tax on business, and hopes that the
CSR spend would be fully tax-
deductible.
This is all the more because
expenditure on CSR would become
an integral cost of doing business
for companies in the future.
It is also widely felt that the large
operating subsidiaries within a
Group may lack the organisational
capabilities to undertake CSR on
their own.
Therefore, group-level CSR
spending based on consolidated
accounts could be permitted,
instead of CSR spending at the
level of individual entities.
Furthermore, the Rules could
clarify that CSR expenditure
incurred by companies in keeping
with conditions, stipulations and
orders of Government
departments, such as the Ministry
of Environment and Forests, would
count towards CSR spend.
Value creation should not be
viewed in a narrow sense, as simply
a means of optimising short-term
financial gains.
Corporate social responsibility in
the form of shared value creation is
the key to establishing a symbiotic
linkage between corporations and
the communities and in taking
forward the India growth story.
But for that, CSR should be
embedded in the corporate culture,
which, in turn, requires inspiration
from the leadership and
commitment across the
organisation.
(This article was first published in
Hindu Business Line on September
16, 2013).
*Dr. A Didar Singh is Secretary
General of FICCI.
n
26 FICCI Business Digest n n September 2013
CSR, a winning proposition
Though philanthropy is an age-
old concept, the term 'corporate
social responsibility' began to
emerge in the 1980s. Thereby
enlarging the responsibility of
business and shifting the focus
from just 'stockholders' to
'stakeholders'.
In the last 20 years, a large
percentage of British and American
companies have been at the
forefront of CSR activities to
demonstrate themselves as socially
responsible corporate citizens.
Both Japan and South Korea have
had a long tradition of CSR, while
emerging markets such as Brazil
have witnessed an active CSR
movement in recent times.
Nurturing CSR Spirit
Even in China, there is an
increasing realisation among
corporates to be seen as socially
responsible.
In India, the culture of
ahatma Gandhi had
stated in 1931, at FICCI's Mfourth Annual General
Meeting: "Industry should consider
themselves as trustee and servants
of the poor". This proposition holds
true to this day. Gandhiji was
reflecting on the role of business in
society and flagging a compassion
that Indian society has traditionally
shown.
Indian business has a rich history
of philanthropy and organisations
such as FICCI have long adhered to
the spirit of promoting responsible
businesses.
Today, it has become mandatory
so businesses have to identify ways
to integrate corporate social
responsibility into their business
strategies and strengthen the
delivery mechanisms to make a
genuine social impact, while
continuing to ensure their own
profitability and sustainability.
That's the challenge.
Dr. A Didar Singh*
September 2013 27n nFICCI Business Digest
philanthropy, especially among big,
family-owned businesses, has
found reflection in their active
promotion of education, healthcare
and basic services for communities.
With the recent passage of the
Companies Bill, which stipulates a
spend of two per cent of net profits
towards CSR, corporate social
responsibility will join the core
business operations of companies.
India is perhaps one of the first
countries in the world to have
mandated this, and it paves the
way for the corporate sector to play
a big role in shaping communities
and improving the national
economy.
In several countries, including
Sweden, Norway, the Netherlands,
Denmark, France, and Australia, it is
not legally mandatory to carry out
CSR activities, though there are
mandatory CSR reporting
requirements. With the inclusion of
CSR as provided in the new
companies legislation in India,
there is a lot that the corporate
sector can do to contribute to
employment, health, education and
poverty eradication.
The spirit behind the provision is
well meant and can be of immense
benefit to the society; however,
implementation could be a
challenge. The recently legislated
CSR provision, being a new
concept, needs to evolve over time.
Though many large Indian
companies have been engaged in
doing meaningful work for society,
this spirit cannot be mechanically
enforced; it needs to be cultivated
and nurtured over time.
To make such a movement
sustainable, it is important to flag
the concept of 'Shared Value'.
This dwells on the connection
between societal and economic
progress as one of the ways in
which businesses have been
working towards enhancing welfare
for society, while doing business as
usual.
This concept was initially
developed by Michael E. Porter and
Mark R. Kramer, in a December
2006 Harvard Business Review
article, "Strategy and Society: The
Link between Competitive
Advantage and Corporate Social
Responsibility."
An increasing number of
companies such as Nestle, Johnson
& Johnson, or closer home, ITC,
have already begun to successfully
embark on important shared value
initiatives.
Companies all over the world are
increasingly making this concept an
integral part of their strategy.
Creating shared value helps
contribute to society while
promoting business.
Broader Spin-offs
The benefits arising out of this
integration are manifold. It
enhances the competitiveness of a
company, while simultaneously
advancing economic and social
well-being in communities,
therefore increasing the long term
sustainability of the company.
It also enhances the possibility of
co-operation between business,
society and government.
While the new Act defines the
broad contours of CSR provision,
the final Rules or subordinate
legislation will carry the finer
details. The government has been
receptive to the legitimate concerns
of India Inc and redressal of some
practical hardships will provide the
corporate sector with a more
conducive environment to do
business and help adapt to the new
requirements.
Industry views with optimism the
assurance by the Minister of
Corporate Affairs that all steps will
be taken to ensure that CSR
expenditure is not construed as a
tax on business, and hopes that the
CSR spend would be fully tax-
deductible.
This is all the more because
expenditure on CSR would become
an integral cost of doing business
for companies in the future.
It is also widely felt that the large
operating subsidiaries within a
Group may lack the organisational
capabilities to undertake CSR on
their own.
Therefore, group-level CSR
spending based on consolidated
accounts could be permitted,
instead of CSR spending at the
level of individual entities.
Furthermore, the Rules could
clarify that CSR expenditure
incurred by companies in keeping
with conditions, stipulations and
orders of Government
departments, such as the Ministry
of Environment and Forests, would
count towards CSR spend.
Value creation should not be
viewed in a narrow sense, as simply
a means of optimising short-term
financial gains.
Corporate social responsibility in
the form of shared value creation is
the key to establishing a symbiotic
linkage between corporations and
the communities and in taking
forward the India growth story.
But for that, CSR should be
embedded in the corporate culture,
which, in turn, requires inspiration
from the leadership and
commitment across the
organisation.
(This article was first published in
Hindu Business Line on September
16, 2013).
*Dr. A Didar Singh is Secretary
General of FICCI.
n
28 FICCI Business Digest n n September 2013
Health Ministry focusing on capacity building for healthcare providers to combat child malnutrition
market and their need. It is
important to know the focus about
the role of the private sector, which
must be a combination of the
market place which includes the
product vis-a-vis the
developmental processes, progress
and implementation with it.
Dr. K K Upadhyay, Head-CSR,
FICCI, said, "India is a country with
many successful experiments;
unfortunately most of them do not
achieve scale. Scaling up the impact
of such innovations requires that
ideas and models be spread
around rapidly so that others could
emulate them. It also requires that
larger business organisations and
venture funds become aware of
them and support them. Indian
industry is among the largest in the
world and has some of the most
advanced plants and technologies
available globally. The need of the
hour is to identify priority areas for
collective action, and build on the
currently ongoing processes." n
he FICCI Aditya Birla CSR
Centre for Excellence and TGlenmark Pharmaceuticals
Ltd. organised a conference on
'Combating child malnutrition:
Sharing best practices' in New
Delhi with an objective to
understand different solutions to
address issues of child malnutrition
and come out with a knowledge
paper on best practices in
combating child malnutrition.
The conference saw the presence
of many dignitaries representing
the Government of India,
corporates and social sector, which
included Dr. Sila Deb, Deputy
Commissioner (Child Health),
Ministry of Health and Family
Welfare, Government of India;
Cheryl Pinto, Director Corporate
Affairs, Glenmark Pharmaceuticals
Limited; Dr. Vandana Prasad,
Member of NCPCR and special
invitee to the Governing Body of
PHRS; Dr. Ashish Satav, Founder,
Mahan Trust; Prakash Michael,
Spandan Samaj Sewa Samiti;
Chinmay Sengupta, CEO, ICICI
Foundation and Dr. Alex George,
Director, Action Aid India.
During the presentations and
discussions, it was found that the
government must create stronger
management systems in order to
effectively work with the
organisations and experts in this
field and result in appropriate and
accurate data and status updates
such that an action can be taken
accordingly especially at the
community level. Also, there is a
deficit of doctors going to rural
areas and the medical schools must
consider this important finding and
take to encouraging students to go
to the villages.
Further, there was a discussion
about the prospective role of the
market forces and the private
sector in the domain of combating
child malnutrition wherein it is
important to realise that products
really play a very small role in the
L to R: Dr. Alex George, Director, Action Aid India; Prakash Michael, Spandan Samaj Sewa Samiti; Dr. Vandana Prasad, Member of
NCPCR & special invitee to the Governing Body of PHRS; Dr. Ashish Satav, Founder, Mahan Trust and Chinmay Sengupta, CEO, ICICI
Foundation.
September 2013 29n nFICCI Business Digest
llen Johnson Sirleaf, President
of Liberia, the first Liberian Ehead of state to visit India,
has invited Indian business to
invest in her country and cash in on
the huge market that Liberia gives
access to.
Addressing an interactive
business meeting jointly organised
by FICCI, CII & ASSOCHAM, in New
Delhi on September 11, 2013,
Sirleaf outlined her country's Vision
2030 Development Strategy which
aims at making Liberia a middle-
income country by the end of that
year. The first slice of that Vision,
the Agenda for Transformation, has
identified the priority areas of
infrastructure, power, ports and
roads to put Liberia on a sustained
development path.
"We have already become eligible
for the African Growth and
Opportunity Act (AGOA); we have
duty-free and quota-free access to
the European Union market for
exports, except arms and
ammunition; and we also have
tariff-free entry into ECOWAS, our
regional institution. All of this gives
us a market that's more than
twenty-five times our own size,"
said Sirleaf.
She said, "Liberia is rich in natural
resources - our forests are virgin;
our mountains are filled with iron
ore, gold and diamonds; our land is
fertile, with plentiful rain; and our
share of the Atlantic Ocean has fish
potential and for hydrocarbon.
Agriculture remains our key area of
strength, with rubber being our
traditional export. We also are a
major oil palm producer, with
recent investments from two Asian
countries, Malaysia and Indonesia.
Traditionally, coffee and cocoa also
are part of our endowment."
"A reform, nearing completion,
will ensure that oil policies and
legislation comply with
international best practices, and
partnership with the world's best
operators who have the technical
and financial capacity to undertake
the high risk and high cost of
exploring and developing our
offshore oil prospects. We want to
create an open and transparent
environment which guarantees
investors a fair return on their
investment, while respecting the
rights and dignities of our citizens,"
said Sirleaf.
Sirleaf said, Liberia is focusing on
developing its manufacturing
sector. Liberia looks at private
sector participation from India in
terms of joint ventures and
partnerships to grow. Another
potential sector is tourism, which
has huge opportunities but the
major constraint is infrastructure in
terms of availability of water, power
and roads. She added that the
construction of basic infrastructure
is under way. n
Liberian President invites Indian business to invest in country's reconstruction
Ellen Johnson Sirleaf, President of Liberia addressing an interactive business meeting.
28 FICCI Business Digest n n September 2013
Health Ministry focusing on capacity building for healthcare providers to combat child malnutrition
market and their need. It is
important to know the focus about
the role of the private sector, which
must be a combination of the
market place which includes the
product vis-a-vis the
developmental processes, progress
and implementation with it.
Dr. K K Upadhyay, Head-CSR,
FICCI, said, "India is a country with
many successful experiments;
unfortunately most of them do not
achieve scale. Scaling up the impact
of such innovations requires that
ideas and models be spread
around rapidly so that others could
emulate them. It also requires that
larger business organisations and
venture funds become aware of
them and support them. Indian
industry is among the largest in the
world and has some of the most
advanced plants and technologies
available globally. The need of the
hour is to identify priority areas for
collective action, and build on the
currently ongoing processes." n
he FICCI Aditya Birla CSR
Centre for Excellence and TGlenmark Pharmaceuticals
Ltd. organised a conference on
'Combating child malnutrition:
Sharing best practices' in New
Delhi with an objective to
understand different solutions to
address issues of child malnutrition
and come out with a knowledge
paper on best practices in
combating child malnutrition.
The conference saw the presence
of many dignitaries representing
the Government of India,
corporates and social sector, which
included Dr. Sila Deb, Deputy
Commissioner (Child Health),
Ministry of Health and Family
Welfare, Government of India;
Cheryl Pinto, Director Corporate
Affairs, Glenmark Pharmaceuticals
Limited; Dr. Vandana Prasad,
Member of NCPCR and special
invitee to the Governing Body of
PHRS; Dr. Ashish Satav, Founder,
Mahan Trust; Prakash Michael,
Spandan Samaj Sewa Samiti;
Chinmay Sengupta, CEO, ICICI
Foundation and Dr. Alex George,
Director, Action Aid India.
During the presentations and
discussions, it was found that the
government must create stronger
management systems in order to
effectively work with the
organisations and experts in this
field and result in appropriate and
accurate data and status updates
such that an action can be taken
accordingly especially at the
community level. Also, there is a
deficit of doctors going to rural
areas and the medical schools must
consider this important finding and
take to encouraging students to go
to the villages.
Further, there was a discussion
about the prospective role of the
market forces and the private
sector in the domain of combating
child malnutrition wherein it is
important to realise that products
really play a very small role in the
L to R: Dr. Alex George, Director, Action Aid India; Prakash Michael, Spandan Samaj Sewa Samiti; Dr. Vandana Prasad, Member of
NCPCR & special invitee to the Governing Body of PHRS; Dr. Ashish Satav, Founder, Mahan Trust and Chinmay Sengupta, CEO, ICICI
Foundation.
September 2013 29n nFICCI Business Digest
llen Johnson Sirleaf, President
of Liberia, the first Liberian Ehead of state to visit India,
has invited Indian business to
invest in her country and cash in on
the huge market that Liberia gives
access to.
Addressing an interactive
business meeting jointly organised
by FICCI, CII & ASSOCHAM, in New
Delhi on September 11, 2013,
Sirleaf outlined her country's Vision
2030 Development Strategy which
aims at making Liberia a middle-
income country by the end of that
year. The first slice of that Vision,
the Agenda for Transformation, has
identified the priority areas of
infrastructure, power, ports and
roads to put Liberia on a sustained
development path.
"We have already become eligible
for the African Growth and
Opportunity Act (AGOA); we have
duty-free and quota-free access to
the European Union market for
exports, except arms and
ammunition; and we also have
tariff-free entry into ECOWAS, our
regional institution. All of this gives
us a market that's more than
twenty-five times our own size,"
said Sirleaf.
She said, "Liberia is rich in natural
resources - our forests are virgin;
our mountains are filled with iron
ore, gold and diamonds; our land is
fertile, with plentiful rain; and our
share of the Atlantic Ocean has fish
potential and for hydrocarbon.
Agriculture remains our key area of
strength, with rubber being our
traditional export. We also are a
major oil palm producer, with
recent investments from two Asian
countries, Malaysia and Indonesia.
Traditionally, coffee and cocoa also
are part of our endowment."
"A reform, nearing completion,
will ensure that oil policies and
legislation comply with
international best practices, and
partnership with the world's best
operators who have the technical
and financial capacity to undertake
the high risk and high cost of
exploring and developing our
offshore oil prospects. We want to
create an open and transparent
environment which guarantees
investors a fair return on their
investment, while respecting the
rights and dignities of our citizens,"
said Sirleaf.
Sirleaf said, Liberia is focusing on
developing its manufacturing
sector. Liberia looks at private
sector participation from India in
terms of joint ventures and
partnerships to grow. Another
potential sector is tourism, which
has huge opportunities but the
major constraint is infrastructure in
terms of availability of water, power
and roads. She added that the
construction of basic infrastructure
is under way. n
Liberian President invites Indian business to invest in country's reconstruction
Ellen Johnson Sirleaf, President of Liberia addressing an interactive business meeting.
30 FICCI Business Digest n n September 2013
achin Pilot, Union Minister
for Corporate Affairs, told Scorporate leaders in New
Delhi on September 12, 2013 that
he would be happy to be their
ambassador and take up with the
Finance Minister the demand for
incentivising CSR projects through
tax exemption and reliefs.
Pilot was addressing the FICCI-
ICSI conference on the Companies
Act, 2013 that received Presidential
assent on August 29 and was
notified on August 30, 2013.
The Act enjoins on companies to
invest two per cent of their net
profit on socially, educationally,
environmentally and economically
beneficial activities especially in
remote and underdeveloped areas
with a view to ameliorating the lot
of the vulnerable and
disadvantaged sections of society.
While acknowledging the
correctness of industry's demand
for the alignment between rules
framed by SEBI and the Companies
Act, Pilot felt that there was a need
for the Finance Ministry, Ministry of
Corporate Affairs, RBI and SEBI to
sit together to create a risk-free
environment to do business.
The Minister urged Indian
corporate sector to have faith in
investing in projects in India so that
the foreign investors get the signal
that India is a safe and profitable
investment destination.
On rule making, Pilot sought to
allay the apprehensions amongst
the business community, stating
that this would be done with full
consultation with all stakeholders.
The draft rules have been uploaded
in the ministry's website for
feedback, he added.
"No legislation is sector-specific,
some will be positively affected and
some negatively," the Minister said,
adding that the Act is more
relevant now to face the economic
challenges as it will ease the
burden of doing business and
attract the flow of funds into the
economy.
S N Ananthasubramanian,
President, ICSI, described the Act as
a flagship legislation, as it was
contemporary, transformative,
innovative and aspirational. These
features which were central to the
Act would make India move higher
in the league table in the ease of
doing business, he said.
The inaugural session was also
addressed by Vijaya Sampath,
Chairperson, FICCI's Corporate
Laws Committee and Senior
Partner, Lakshmi Kumaran &
Sridharan and Dr. A Didar Singh,
Secretary General, FICCI. n
Sachin Pilot offers to take up industry's demand for tax relief on CSR spends with Finance Ministry
Sachin Pilot, Union Minister for Corporate Affairs, addressing the FICCI-ICSI
conference on the Companies Act, 2013 in New Delhi on September 12, 2013.
September 2013 31n nFICCI Business Digest
he industry’s perspective on
the Companies Act was Tsuccinctly articulated by
Sidharth Birla, Senior Vice President
of FICCI.
Birla stated that the new Act
shakes people outside a comfort
zone of the old Act, but is it really
full of surprises? It was required to
cover a range of businesses and
issues not conceived in the old law.
Emerging governance practices and
challenges had to be captured in a
contemporary version. In a longish
journey, industry greeted the JJ
Irani report, witnessed
delinquencies, faced a global
financial crisis, and noticed laws
and attitudes transform across the
world; there should be no real
surprises! All in all, fairly
implemented, the Act should add
to clarity of doing business in India.
Some provisions embedded by
the Standing Committee make
parts of the Act contentious. But to
MCA’s credit, it enabled intensive
interactions which allowed a most
informed, balanced and practically
possible approach while addressing
most of the Committee’s concerns,
he said.
The Act in essence emphasises
accountability, sound governance,
the fiduciary role of directors, and
explicit recognition of a stakeholder
universe. Birla said, “Reading it
along with your vision of less
regulation but rigorous, honest
compliance can make life simpler.
There will always be elements who
believe that following the law is
optional for them. Therefore we
need strict enforcement without
which we will see new laws which
will affect all for the sins of some.”
“Your ministry recognises that its
laws must not either micro-manage
or hamper business. For this legacy
to sustain this spirit must be
embedded so it is adhered to by
future administrators. We also look
to alignment of SEBI governance
norms to the Act and suggest that
MCA should be the driving force
behind this. FICCI has mentioned to
SEBI the pressing need to align its
regulations with the Act,” he
remarked.
Rule prescription and a
systematic transition process are
vital to the Act. A lot of attention
was given to the Rules process;
MCA has also shown commendable
patience with the constant barrage
FICCI keeps up with inputs! Draft
Rules have been announced
recently. A scientific transition
schedule will add to clarity. FICCI
has also suggested a mandated
Rule Advisory Committee so that
future rule amendments or
prescriptions are not arbitrary.
Section 149 protects independent
directors from action based on
participation or knowledge tests;
yet it denies protection to non-
executive Promoter Directors with
any reference to powers,
knowledge or action. Law cannot
deny protection simply on a class
description. This matter needs
much debate.
Promoter is now defined for the
first time in law - incidentally this is
peculiar to India. They are
frequently subject to much media
criticism and investor anger. Some
promoters could have unduly
leveraged their managerial powers,
but that cannot be held against
their entire community. It is
necessary to distinguish between
exercise of managerial power -
which is routine - and exercise of
ownership rights - which is
infrequent. The system must have
the discretion to distinguish so
correct parties are held
accountable. “I believe the
Parliamentary committee also
emphasised due care that the
innocent are safeguarded,” he
added.
In an anxiety to provide
enhanced protection for minority
investors, there are some conflicts
with time-tested principles of
majority rights. A majority must be
held accountable if there is a
collateral agenda to hurt minority;
but there can be no logic or
sanctity in forcing minority over
majority. In essence, it is vital that
noise does not drown reason.
Perhaps MCA and SEBI need to
look at this issue objectively and in
sync, before judicial challenge or a
no-confidence vote by serious
investors hurts us. n
Companies Act will lend clarity to doing business in India: Sidharth Birla
30 FICCI Business Digest n n September 2013
achin Pilot, Union Minister
for Corporate Affairs, told Scorporate leaders in New
Delhi on September 12, 2013 that
he would be happy to be their
ambassador and take up with the
Finance Minister the demand for
incentivising CSR projects through
tax exemption and reliefs.
Pilot was addressing the FICCI-
ICSI conference on the Companies
Act, 2013 that received Presidential
assent on August 29 and was
notified on August 30, 2013.
The Act enjoins on companies to
invest two per cent of their net
profit on socially, educationally,
environmentally and economically
beneficial activities especially in
remote and underdeveloped areas
with a view to ameliorating the lot
of the vulnerable and
disadvantaged sections of society.
While acknowledging the
correctness of industry's demand
for the alignment between rules
framed by SEBI and the Companies
Act, Pilot felt that there was a need
for the Finance Ministry, Ministry of
Corporate Affairs, RBI and SEBI to
sit together to create a risk-free
environment to do business.
The Minister urged Indian
corporate sector to have faith in
investing in projects in India so that
the foreign investors get the signal
that India is a safe and profitable
investment destination.
On rule making, Pilot sought to
allay the apprehensions amongst
the business community, stating
that this would be done with full
consultation with all stakeholders.
The draft rules have been uploaded
in the ministry's website for
feedback, he added.
"No legislation is sector-specific,
some will be positively affected and
some negatively," the Minister said,
adding that the Act is more
relevant now to face the economic
challenges as it will ease the
burden of doing business and
attract the flow of funds into the
economy.
S N Ananthasubramanian,
President, ICSI, described the Act as
a flagship legislation, as it was
contemporary, transformative,
innovative and aspirational. These
features which were central to the
Act would make India move higher
in the league table in the ease of
doing business, he said.
The inaugural session was also
addressed by Vijaya Sampath,
Chairperson, FICCI's Corporate
Laws Committee and Senior
Partner, Lakshmi Kumaran &
Sridharan and Dr. A Didar Singh,
Secretary General, FICCI. n
Sachin Pilot offers to take up industry's demand for tax relief on CSR spends with Finance Ministry
Sachin Pilot, Union Minister for Corporate Affairs, addressing the FICCI-ICSI
conference on the Companies Act, 2013 in New Delhi on September 12, 2013.
September 2013 31n nFICCI Business Digest
he industry’s perspective on
the Companies Act was Tsuccinctly articulated by
Sidharth Birla, Senior Vice President
of FICCI.
Birla stated that the new Act
shakes people outside a comfort
zone of the old Act, but is it really
full of surprises? It was required to
cover a range of businesses and
issues not conceived in the old law.
Emerging governance practices and
challenges had to be captured in a
contemporary version. In a longish
journey, industry greeted the JJ
Irani report, witnessed
delinquencies, faced a global
financial crisis, and noticed laws
and attitudes transform across the
world; there should be no real
surprises! All in all, fairly
implemented, the Act should add
to clarity of doing business in India.
Some provisions embedded by
the Standing Committee make
parts of the Act contentious. But to
MCA’s credit, it enabled intensive
interactions which allowed a most
informed, balanced and practically
possible approach while addressing
most of the Committee’s concerns,
he said.
The Act in essence emphasises
accountability, sound governance,
the fiduciary role of directors, and
explicit recognition of a stakeholder
universe. Birla said, “Reading it
along with your vision of less
regulation but rigorous, honest
compliance can make life simpler.
There will always be elements who
believe that following the law is
optional for them. Therefore we
need strict enforcement without
which we will see new laws which
will affect all for the sins of some.”
“Your ministry recognises that its
laws must not either micro-manage
or hamper business. For this legacy
to sustain this spirit must be
embedded so it is adhered to by
future administrators. We also look
to alignment of SEBI governance
norms to the Act and suggest that
MCA should be the driving force
behind this. FICCI has mentioned to
SEBI the pressing need to align its
regulations with the Act,” he
remarked.
Rule prescription and a
systematic transition process are
vital to the Act. A lot of attention
was given to the Rules process;
MCA has also shown commendable
patience with the constant barrage
FICCI keeps up with inputs! Draft
Rules have been announced
recently. A scientific transition
schedule will add to clarity. FICCI
has also suggested a mandated
Rule Advisory Committee so that
future rule amendments or
prescriptions are not arbitrary.
Section 149 protects independent
directors from action based on
participation or knowledge tests;
yet it denies protection to non-
executive Promoter Directors with
any reference to powers,
knowledge or action. Law cannot
deny protection simply on a class
description. This matter needs
much debate.
Promoter is now defined for the
first time in law - incidentally this is
peculiar to India. They are
frequently subject to much media
criticism and investor anger. Some
promoters could have unduly
leveraged their managerial powers,
but that cannot be held against
their entire community. It is
necessary to distinguish between
exercise of managerial power -
which is routine - and exercise of
ownership rights - which is
infrequent. The system must have
the discretion to distinguish so
correct parties are held
accountable. “I believe the
Parliamentary committee also
emphasised due care that the
innocent are safeguarded,” he
added.
In an anxiety to provide
enhanced protection for minority
investors, there are some conflicts
with time-tested principles of
majority rights. A majority must be
held accountable if there is a
collateral agenda to hurt minority;
but there can be no logic or
sanctity in forcing minority over
majority. In essence, it is vital that
noise does not drown reason.
Perhaps MCA and SEBI need to
look at this issue objectively and in
sync, before judicial challenge or a
no-confidence vote by serious
investors hurts us. n
Companies Act will lend clarity to doing business in India: Sidharth Birla
32 FICCI Business Digest n n September 2013
position on the European and
international stage.
The country boasts of
considerable expertise in a wide
range of fields - expertise which
has largely been the driving force
behind its success. Industrial
activity in Belgium originally
centered on heavy industry
your gateway to Europe
his year Belgium is
celebrating 65 years of Tdiplomatic relations with
India. Today, India is set to become
a major political and economic
global player. Our bilateral trade
with India reflects this new state of
the world, as we are India's second
European trade partner, with a
turnover of 12.16 billion Euros in
2012 (15.80 billion USD). It may be
useful to remember that the
European Union (EU), with a figure
of 100 billions, is the first trade
partner of India. In this context, the
Belgian position is undoubtedly
significant.
The bilateral agenda with Belgium
associated with the mining and
processing of its underground
resources. However, the country
succeeded in making a smooth
entry into other key industrial
sectors, paving the way for and
promoting economic growth in
Europe.
Message
elgium is located at the
interface of the major BEuropean hubs of economic
and urban activity and the world's
primary seaboard, the North Sea. It
lies not only within one of the most
populous and trade-intensive
regions on the planet but also
along a key economic and urban
axis.
Blessed with a salubrious climate,
bountiful natural resources, rapidly
expanding sectors and a central
location, Belgium enjoys a key
© OPT - J.P. Remy
is truly impressive. It illustrates the
importance of the India-Belgium
relationship.
The 13th bilateral joint economic
commission between India and
Belgium-Luxembourg took place in
Brussels July 2013. We reviewed the
existing cooperation and are looking
for ways to launch concrete
initiatives in business cooperation,
S&T cooperation and skills
development in sectors of mutual
interest.
A new Princely Mission will come to
India in November 2013. The
delegation of over 250 businessmen
and officials will be led by HRH
Princess Astrid and visit Delhi, Belgium Ambassador, Mr. Pierre Vaesen
September 2013 33n nFICCI Business Digest
As Belgium is a constitutional
monarchy, the latter's role is defined
and enshrined in the Constitution. The
head of state is the King, who is the
King of the Belgians. The Constitution
lays down the King's legal status and
the hereditary succession. In the event
of a succession, the King's
constitutional authority is passed on to
the natural and legal direct descendant.
On July 21, 2013, King Philippe took
power after he solemnly took a
constitutional oath during a joint
meeting of the Chamber of
Representatives and the Senate. This
happened after his predecessor, King
Albert II, announced his abdication on
July 3, 2013.
Belgium is a federal state made up of
three communities, the French, the
Flemish and the German-speaking
community, and three regions: the
Brussels-Capital Region at the centre,
which is officially bilingual, the Flemish
Region to the north, which is Dutch-
speaking and the Walloon Region to
the south, which is French and German-
speaking.
The main federal institutions are the
Federal Government and the Federal
Parliament.
A treasure trove of contrasts
The main features of Flanders with its
flat landscape are its cities and ports.
Wallonia, meanwhile, is a region of hills
and valleys, the most famous area
being the Ardennes to the south with
its outstanding natural beauty and
considerable appeal as a tourist
destination.
Most towns in Belgium are extremely
old, with some such as Tongeren and
Arlon dating back over 2,000 years to
Roman times. Cities such as Bruges and
Ypres were some of Europe's largest
settlements during the Middle Ages
and Ghent, Brussels, Antwerp and Liege
are also renowned artistic centers.
A Constitutional Monarchy
Mumbai and Chennai. We will take this opportunity to sign Memoranda
of Understanding, organise business-to-business forums, political high-
level dialogues and officially announce the opening of the Consulate
General in Chennai. During the mission, an exhibition of the most
famous Flemish masters will take place in Mumbai.
Also, the 2013 edition of Europalia will be devoted to India. It is a
cultural festival that takes place every two years, which showcases the
culture of the guest country during four months with hundreds of events.
Europalia will be opened by HM King Philippe and Pranab Mukherjee,
President of India, on October 4, 2013.
I am also very pleased to see more and more contacts and initiatives in
the field of academic and scientific cooperation.
Taking into account all these economic, cultural and education
exchanges, I look forward to a growing partnership between our two
countries.
Welcome to Belgium!
New sectors continued to spring
up throughout the 20th century
following the arrival in Belgium of
leading corporate groups in a
variety of sectors including
petrochemicals, pharmaceuticals,
biotechnology, nanoelectronics,
automobile manufacturing and
household goods, among others.
Activity in these new sectors has
long ensured considerable socio-
economic diversity in Belgium and
in so doing has promoted the
growth of subcontracting and an
efficient service sector offering
substantial added value.
Following in its own footsteps as
the first country in Continental
Europe to embrace the industrial
revolution, Belgium has made the
most of its geographical location as
a gateway to its key neighbours
and at the very heart of all Europe's
markets.
Leisure
In addition to its countless
popular festivals, packed cultural
calendar, rich and impressive
artistic heritage and tasty cuisine,
Belgium also offers a great deal in
the way of leisure pursuits,
including walking trails through the
forests of the Ardennes and across
the fenland Plateau des
Fagnes, the North Sea coast,
cycling, horse-riding and
boating, golf, theme parks,
castles and estates,
international fairs and
exhibitions, antiques fairs and
flea markets.
Belgium offers an incredibly
diverse range of tourist
attractions, particularly for
such a small country: there is
something for everyone - and
it's never very far away!
Lifestyle is of high quality in
Belgium. Our country is
famous for its chocolate, beer
and gastronomy. Belgian
fashion and design have
become internationally
recognized.
Folklore and traditions
All manner of popular
celebrations take place in
Belgium throughout the year,
including carnivals, marching
bands, processions, historical
re-enactments, country fairs
and commemorative events.
Many such events are inspired
by the collective memory in
different areas and regions.
Fine art is the perfect
32 FICCI Business Digest n n September 2013
position on the European and
international stage.
The country boasts of
considerable expertise in a wide
range of fields - expertise which
has largely been the driving force
behind its success. Industrial
activity in Belgium originally
centered on heavy industry
your gateway to Europe
his year Belgium is
celebrating 65 years of Tdiplomatic relations with
India. Today, India is set to become
a major political and economic
global player. Our bilateral trade
with India reflects this new state of
the world, as we are India's second
European trade partner, with a
turnover of 12.16 billion Euros in
2012 (15.80 billion USD). It may be
useful to remember that the
European Union (EU), with a figure
of 100 billions, is the first trade
partner of India. In this context, the
Belgian position is undoubtedly
significant.
The bilateral agenda with Belgium
associated with the mining and
processing of its underground
resources. However, the country
succeeded in making a smooth
entry into other key industrial
sectors, paving the way for and
promoting economic growth in
Europe.
Message
elgium is located at the
interface of the major BEuropean hubs of economic
and urban activity and the world's
primary seaboard, the North Sea. It
lies not only within one of the most
populous and trade-intensive
regions on the planet but also
along a key economic and urban
axis.
Blessed with a salubrious climate,
bountiful natural resources, rapidly
expanding sectors and a central
location, Belgium enjoys a key
© OPT - J.P. Remy
is truly impressive. It illustrates the
importance of the India-Belgium
relationship.
The 13th bilateral joint economic
commission between India and
Belgium-Luxembourg took place in
Brussels July 2013. We reviewed the
existing cooperation and are looking
for ways to launch concrete
initiatives in business cooperation,
S&T cooperation and skills
development in sectors of mutual
interest.
A new Princely Mission will come to
India in November 2013. The
delegation of over 250 businessmen
and officials will be led by HRH
Princess Astrid and visit Delhi, Belgium Ambassador, Mr. Pierre Vaesen
September 2013 33n nFICCI Business Digest
As Belgium is a constitutional
monarchy, the latter's role is defined
and enshrined in the Constitution. The
head of state is the King, who is the
King of the Belgians. The Constitution
lays down the King's legal status and
the hereditary succession. In the event
of a succession, the King's
constitutional authority is passed on to
the natural and legal direct descendant.
On July 21, 2013, King Philippe took
power after he solemnly took a
constitutional oath during a joint
meeting of the Chamber of
Representatives and the Senate. This
happened after his predecessor, King
Albert II, announced his abdication on
July 3, 2013.
Belgium is a federal state made up of
three communities, the French, the
Flemish and the German-speaking
community, and three regions: the
Brussels-Capital Region at the centre,
which is officially bilingual, the Flemish
Region to the north, which is Dutch-
speaking and the Walloon Region to
the south, which is French and German-
speaking.
The main federal institutions are the
Federal Government and the Federal
Parliament.
A treasure trove of contrasts
The main features of Flanders with its
flat landscape are its cities and ports.
Wallonia, meanwhile, is a region of hills
and valleys, the most famous area
being the Ardennes to the south with
its outstanding natural beauty and
considerable appeal as a tourist
destination.
Most towns in Belgium are extremely
old, with some such as Tongeren and
Arlon dating back over 2,000 years to
Roman times. Cities such as Bruges and
Ypres were some of Europe's largest
settlements during the Middle Ages
and Ghent, Brussels, Antwerp and Liege
are also renowned artistic centers.
A Constitutional Monarchy
Mumbai and Chennai. We will take this opportunity to sign Memoranda
of Understanding, organise business-to-business forums, political high-
level dialogues and officially announce the opening of the Consulate
General in Chennai. During the mission, an exhibition of the most
famous Flemish masters will take place in Mumbai.
Also, the 2013 edition of Europalia will be devoted to India. It is a
cultural festival that takes place every two years, which showcases the
culture of the guest country during four months with hundreds of events.
Europalia will be opened by HM King Philippe and Pranab Mukherjee,
President of India, on October 4, 2013.
I am also very pleased to see more and more contacts and initiatives in
the field of academic and scientific cooperation.
Taking into account all these economic, cultural and education
exchanges, I look forward to a growing partnership between our two
countries.
Welcome to Belgium!
New sectors continued to spring
up throughout the 20th century
following the arrival in Belgium of
leading corporate groups in a
variety of sectors including
petrochemicals, pharmaceuticals,
biotechnology, nanoelectronics,
automobile manufacturing and
household goods, among others.
Activity in these new sectors has
long ensured considerable socio-
economic diversity in Belgium and
in so doing has promoted the
growth of subcontracting and an
efficient service sector offering
substantial added value.
Following in its own footsteps as
the first country in Continental
Europe to embrace the industrial
revolution, Belgium has made the
most of its geographical location as
a gateway to its key neighbours
and at the very heart of all Europe's
markets.
Leisure
In addition to its countless
popular festivals, packed cultural
calendar, rich and impressive
artistic heritage and tasty cuisine,
Belgium also offers a great deal in
the way of leisure pursuits,
including walking trails through the
forests of the Ardennes and across
the fenland Plateau des
Fagnes, the North Sea coast,
cycling, horse-riding and
boating, golf, theme parks,
castles and estates,
international fairs and
exhibitions, antiques fairs and
flea markets.
Belgium offers an incredibly
diverse range of tourist
attractions, particularly for
such a small country: there is
something for everyone - and
it's never very far away!
Lifestyle is of high quality in
Belgium. Our country is
famous for its chocolate, beer
and gastronomy. Belgian
fashion and design have
become internationally
recognized.
Folklore and traditions
All manner of popular
celebrations take place in
Belgium throughout the year,
including carnivals, marching
bands, processions, historical
re-enactments, country fairs
and commemorative events.
Many such events are inspired
by the collective memory in
different areas and regions.
Fine art is the perfect
34 FICCI Business Digest n n September 2013
showcase of Belgium at its best.
Pieter Bruegel the Elder was one of
the greatest artists the world has
ever known and the adjective
'Brueghelian' is a virtual synonym
for 'Burgundian', both terms being
closely linked to the adjective
'Belgian'.
Magnificent works by the so-
called Flemish Primitives, namely
the Van Eyck brothers, Rogier Van
der Weyden, Hugo Van der Goes,
Hans Memling and Jeroen Bosch
today, hang in museums all over
the world, as do those by more
recent Belgian painters such as the
brilliant Paul Delvaux and René
Magritte, the standard bearers for
Belgian surrealism.
Victor Horta, Henry Van de Velde
and others transformed Brussels
into the capital of Art Nouveau by
building magnificent yet
completely habitable houses in the
art deco style. 'Belgians are born
with a brick in their stomach' as the
saying goes. Art Deco, too, is a
striking feature of Brussels'
Belgium is a country that
abounds in creative talent. John
Cockerill supplied customers all
over the world with steam
locomotives, steamboats, trams,
blast furnaces and other heavy
industrial equipment. The dynamo,
soda and Bakelite, and many other
practical applications were all
invented by Belgians or people of
Belgian origin, and today's rapidly
evolving industry is continuing this
tradition.
Such well-known artists as Peter
Paul Rubens, Pieter Bruegel, Jan
Van Eyck, Rogier Van der Weyden
and Antoon Van Dyck - to mention
just a few of the Flemish masters -
rose to prominence in the land that
would one day become Belgium.
Their paintings are to be found all
over the world but some of their
finest works are on display in a
number of Belgium's museums.
James Ensor, Félicien Rops, Théo
Van Rysselberghe, Paul Delvaux and
René Magritte are also
internationally famous Belgian
artists.
During the Middle Ages,
cathedrals and belfries sprang up
all over Belgium and can still be
admired today in many art cities
across the country. Countless
castles are to be found dotted all
over the Belgian countryside and
come the 20th century, the city of
Brussels became synonymous with
the Art Nouveau movement. All of
these buildings have helped to
define the country's incredible
wealth of architectural triumphs.
Fine arts, folklore, fashion,
design… Reflections of the past or
future trends, these are all areas
where Belgian talent holds sway.
And of course Belgians really
appreciate top cuisine, relishing the
country's mouth-watering and
long-standing culinary traditions.
A fountainhead of creative talent
architecture, as is industrial art.
Mention should also be made of
the present-day Belgian post-
modernist architects, Bob Van
Reeth, Jo Crepain and Stéphane
Beel, presenting the New Simplicity.
The prestigious architectural works
include the MAS (Museum aan de
Stroom) in Antwerp, Antwerp
Central Station and the Liege-
Guillemins Station.
Texts provided by The Chancellery of
the Prime Minister of Belgium
n
September 2013 35n nFICCI Business Digest
amal Nath, Union Minister of
Urban Development and KParliamentary Affairs,
suggested initiation of a pilot
project on tramways integrated
with the transport systems in a
medium-sized city. After a
successful trial, tramways should be
introduced in tier II cities and
connected with major bus and rail
stations.
Addressing an Indo-French
seminar on 'Sustainable Cities -
Next Generation Tramways
Solutions' organised by FICCI in
association with the Ministry of
Urban Development Government of
India and Embassy of France in
New Delhi on September 9, 2013,
Nath said, a tramway model
integrates well and connects the
areas within city and intercity where
Metro, BRT and Monorail cannot
go. Tramways allow towns to
capture the economic impulse and
systems, as well as high speed rail
and Rapid Transportation Systems
of the future."
Dr. Sudhir Krishna, Secretary,
Ministry of Urban Development,
Government of India, said that
partnering with France in the space
of urban transportation will help
India to develop its transport
system which is an important
component for growth. Tramways
are not new to India, but it has
been neglected in the past. With
the assistance of French experts,
tramways of Kolkata can be
rejuvenated and can be introduced
in other parts of India.
Paul Hermelin, the French Special
Envoy for Bilateral Economic
Relationship, said that in 1998 India
and France had entered into
strategic partnership and
development of urban
transportation is at the fore front of
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.
Sidharth Birla, Senior Vice-
President, FICCI, said that the
growth and future of our cities and
emerging towns hinges on how
policy makers, town planners and
tax payers collaborate towards
sustainable and meaningful
solutions to the needs of urban
infrastructure. The development of
modern cities the world over shows
how critical it is to have a forward
looking vision and framework, he
added.
Dr. A Didar Singh, Secretary
General, FICCI, said that the French
companies have shown interest in
developing tramways as a viable
intra-urban transport solution for
Indian cities. FICCI is fully
committed in extending its
cooperation in realising the goals
in the times ahead. n
Kamal Nath, Union Minister of Urban
Development and Parliamentary Affairs
(right) with Mr. Sidharth Birla, Senior Vice-
President, FICCI.
Kamal Nath tramways
medium-sized Indian city efficacy
suggests test drive of in a
to gauge its
density generated by large cities.
He said, transportation is critical
to India's economic growth, and a
clean energy solution that provides
smart mobility in our urban areas
and allows freight to move easily is
essential. Tramways' new rapid
transit system can be used for
moving people or freight. It is
electrically powered, fully
automated (driverless) and
operates using intelligent drive
bogies traveling inside a fixed
guide way.
Nath said, "I personally feel,
guide way support construction
projects are fast and inexpensive,
minimising neighbourhood
disruption in comparison to any at-
grade rail system. Operating costs
are lower than for buses. A tram
system will provide easy
interoperability with first-mile/last-
mile modes such as bikes and
walking, existing transportation
Kamal Nath, Union Minister of Urban
Development and Parliamentary Affairs
(right) with Sidharth Birla, Senior
Vice-President, FICCI.
Lto R : Anand Sharma, India's Minister of Commerce and Industry; Crown Prince Philippe and Naina Lal Kidwai, President, FICCI.
34 FICCI Business Digest n n September 2013
showcase of Belgium at its best.
Pieter Bruegel the Elder was one of
the greatest artists the world has
ever known and the adjective
'Brueghelian' is a virtual synonym
for 'Burgundian', both terms being
closely linked to the adjective
'Belgian'.
Magnificent works by the so-
called Flemish Primitives, namely
the Van Eyck brothers, Rogier Van
der Weyden, Hugo Van der Goes,
Hans Memling and Jeroen Bosch
today, hang in museums all over
the world, as do those by more
recent Belgian painters such as the
brilliant Paul Delvaux and René
Magritte, the standard bearers for
Belgian surrealism.
Victor Horta, Henry Van de Velde
and others transformed Brussels
into the capital of Art Nouveau by
building magnificent yet
completely habitable houses in the
art deco style. 'Belgians are born
with a brick in their stomach' as the
saying goes. Art Deco, too, is a
striking feature of Brussels'
Belgium is a country that
abounds in creative talent. John
Cockerill supplied customers all
over the world with steam
locomotives, steamboats, trams,
blast furnaces and other heavy
industrial equipment. The dynamo,
soda and Bakelite, and many other
practical applications were all
invented by Belgians or people of
Belgian origin, and today's rapidly
evolving industry is continuing this
tradition.
Such well-known artists as Peter
Paul Rubens, Pieter Bruegel, Jan
Van Eyck, Rogier Van der Weyden
and Antoon Van Dyck - to mention
just a few of the Flemish masters -
rose to prominence in the land that
would one day become Belgium.
Their paintings are to be found all
over the world but some of their
finest works are on display in a
number of Belgium's museums.
James Ensor, Félicien Rops, Théo
Van Rysselberghe, Paul Delvaux and
René Magritte are also
internationally famous Belgian
artists.
During the Middle Ages,
cathedrals and belfries sprang up
all over Belgium and can still be
admired today in many art cities
across the country. Countless
castles are to be found dotted all
over the Belgian countryside and
come the 20th century, the city of
Brussels became synonymous with
the Art Nouveau movement. All of
these buildings have helped to
define the country's incredible
wealth of architectural triumphs.
Fine arts, folklore, fashion,
design… Reflections of the past or
future trends, these are all areas
where Belgian talent holds sway.
And of course Belgians really
appreciate top cuisine, relishing the
country's mouth-watering and
long-standing culinary traditions.
A fountainhead of creative talent
architecture, as is industrial art.
Mention should also be made of
the present-day Belgian post-
modernist architects, Bob Van
Reeth, Jo Crepain and Stéphane
Beel, presenting the New Simplicity.
The prestigious architectural works
include the MAS (Museum aan de
Stroom) in Antwerp, Antwerp
Central Station and the Liege-
Guillemins Station.
Texts provided by The Chancellery of
the Prime Minister of Belgium
n
September 2013 35n nFICCI Business Digest
amal Nath, Union Minister of
Urban Development and KParliamentary Affairs,
suggested initiation of a pilot
project on tramways integrated
with the transport systems in a
medium-sized city. After a
successful trial, tramways should be
introduced in tier II cities and
connected with major bus and rail
stations.
Addressing an Indo-French
seminar on 'Sustainable Cities -
Next Generation Tramways
Solutions' organised by FICCI in
association with the Ministry of
Urban Development Government of
India and Embassy of France in
New Delhi on September 9, 2013,
Nath said, a tramway model
integrates well and connects the
areas within city and intercity where
Metro, BRT and Monorail cannot
go. Tramways allow towns to
capture the economic impulse and
systems, as well as high speed rail
and Rapid Transportation Systems
of the future."
Dr. Sudhir Krishna, Secretary,
Ministry of Urban Development,
Government of India, said that
partnering with France in the space
of urban transportation will help
India to develop its transport
system which is an important
component for growth. Tramways
are not new to India, but it has
been neglected in the past. With
the assistance of French experts,
tramways of Kolkata can be
rejuvenated and can be introduced
in other parts of India.
Paul Hermelin, the French Special
Envoy for Bilateral Economic
Relationship, said that in 1998 India
and France had entered into
strategic partnership and
development of urban
transportation is at the fore front of
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.
Sidharth Birla, Senior Vice-
President, FICCI, said that the
growth and future of our cities and
emerging towns hinges on how
policy makers, town planners and
tax payers collaborate towards
sustainable and meaningful
solutions to the needs of urban
infrastructure. The development of
modern cities the world over shows
how critical it is to have a forward
looking vision and framework, he
added.
Dr. A Didar Singh, Secretary
General, FICCI, said that the French
companies have shown interest in
developing tramways as a viable
intra-urban transport solution for
Indian cities. FICCI is fully
committed in extending its
cooperation in realising the goals
in the times ahead. n
Kamal Nath, Union Minister of Urban
Development and Parliamentary Affairs
(right) with Mr. Sidharth Birla, Senior Vice-
President, FICCI.
Kamal Nath tramways
medium-sized Indian city efficacy
suggests test drive of in a
to gauge its
density generated by large cities.
He said, transportation is critical
to India's economic growth, and a
clean energy solution that provides
smart mobility in our urban areas
and allows freight to move easily is
essential. Tramways' new rapid
transit system can be used for
moving people or freight. It is
electrically powered, fully
automated (driverless) and
operates using intelligent drive
bogies traveling inside a fixed
guide way.
Nath said, "I personally feel,
guide way support construction
projects are fast and inexpensive,
minimising neighbourhood
disruption in comparison to any at-
grade rail system. Operating costs
are lower than for buses. A tram
system will provide easy
interoperability with first-mile/last-
mile modes such as bikes and
walking, existing transportation
Kamal Nath, Union Minister of Urban
Development and Parliamentary Affairs
(right) with Sidharth Birla, Senior
Vice-President, FICCI.
Lto R : Anand Sharma, India's Minister of Commerce and Industry; Crown Prince Philippe and Naina Lal Kidwai, President, FICCI.
36 FICCI Business Digest n n September 2013
he first meeting of the BRICS
Business Council which Tconcluded on August 20 in
Johannesburg saw the leadership
and businesses of the five
emerging economies (Brazil, Russia,
India, China and South Africa) set
the ball rolling on creation and
strengthening of linkages at the
business level to drive the trade
and investment agenda. The
Business Council was launched in
March this year in Durban.
There are three compelling
reasons at this juncture for the
BRICS to push beyond outlines and
contours of their growth agenda
and focus on concrete deliverables
and achievements.
Onkar Kanwar, Chair, India-BRICS Business Council & CMD, Apollo Tyres Ltd.
(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),
at the BRICS Business Council Meeting in Johannesburg.
Some of the key decisions arrived at the BRICS
Business Council to enhance cooperation
include working with governments for issue of
multiple-entry business visas for longer
periods to ease travel for business people
within the bloc; promoting the idea of creation
of a BRICS business travel card and working
towards creation of an information exchange
platform – a BRICS business portal – that will
enable businesses to access information on
trade and investment opportunities across
countries.
September 2013 37n nFICCI Business Digest
First is the dim prospects of
global growth which is projected to
remain subdued at slightly above
three per cent in 2013, the same as
in 2012. This is less than forecasted
in April 2013 by the IMF, driven to
a large extent by appreciably
weaker domestic demand, slower
growth in several key emerging
market economies and a more
protracted recession in the Euro
area.
Second is the enduring strength
of the grouping which they can ill
afford to squander at a time when
their performance holds forth
optimism amidst the lingering
slowdown. The BRICS countries
account for 43 per cent of the
world's population, around 20 per
cent of its GDP and 40 per cent of
its currency reserves. In 2011, total
trade of the BRICS grouping
amounted to US$ 5.8 trillion
representing 17 per cent of the
global trade. Though some of the
BRICS nations are grappling with
problems in their economies, China
continues to demonstrate high
rates of economic growth, India is
showing a reasonable five per cent
growth and the other three - Brazil,
Russia and South Africa - too are
showing convincing results.
Third is that Africa with its
untapped potential and growing
economic prowess has emerged as
an asset which the BRICS need to
cultivate. The BRICS-Africa
partnership has only got stronger.
Africa's trade with BRICS has grown
faster than with any other region in
the world, doubling since 2007 to
$340 billion in 2012, and projected
to reach $500 billion by 2015.
Given these imperatives, some of
the key decisions arrived at the
BRICS Business Council to enhance
cooperation include working with
governments for issue of multiple-
entry business visas for longer
periods to ease travel for business
people within the bloc; promoting
the idea of creation of a BRICS
business travel card and working
towards creation of an information
exchange platform - a BRICS
business portal - that will enable
businesses to access information
on trade and investment
opportunities across countries.
Some of the other areas for
promoting cooperation that
emanated during discussions at this
meeting included investment
facilitation for joint ventures,
setting up of special economic
zones and dedicated industrial
clusters for economic value
addition in each other's country
and even in Africa, promoting
dialogue on energy security
through a BRICS hydrocarbons
forum and encouraging direct
business-to-business interactions
by hosting specialised trade fairs in
sectors such as agriculture and
engineering.
Members of the BRICS Business
Council also decided to take steps
to deepen economic engagement
with Africa keeping an eye on their
development needs.
Members of both the BRICS
grouping as well as the African
region face an acute challenge of
developing the infrastructure
sector in their respective countries.
Development of infrastructure can
be an important driver of growth
and with this in mind, the BRICS
Business Council agreed to
promote public-private
partnerships among the five
emerging economies and
collaborate in exploring a
number of 'tangible projects'
such as India's North-South
Corridor projects comprising
large-scale transport, energy
and water projects.
Members were also keen to
jointly promote Africa's
infrastructure and construction
sector. The idea to jointly
participate in major African
transnational projects including
those proposed by the G-20, the
African Union and sub-regional
organisations can turn them into a
driving force for deepening
economic integration and
improving people's livelihoods in
Africa, resonated at this meeting. n
Some of the other areas for promoting cooperation
include investment facilitation for joint ventures,
setting up of special economic zones and dedicated
industrial clusters for economic value addition in each
other's country and even in Africa, promoting dialogue
on energy security through a BRICS hydrocarbons
forum and encouraging direct business-to-business
interactions by hosting specialised trade fairs in sectors
such as agriculture and engineering.
BRICS gets down to business amidst lingering global slowdown
36 FICCI Business Digest n n September 2013
he first meeting of the BRICS
Business Council which Tconcluded on August 20 in
Johannesburg saw the leadership
and businesses of the five
emerging economies (Brazil, Russia,
India, China and South Africa) set
the ball rolling on creation and
strengthening of linkages at the
business level to drive the trade
and investment agenda. The
Business Council was launched in
March this year in Durban.
There are three compelling
reasons at this juncture for the
BRICS to push beyond outlines and
contours of their growth agenda
and focus on concrete deliverables
and achievements.
Onkar Kanwar, Chair, India-BRICS Business Council & CMD, Apollo Tyres Ltd.
(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),
at the BRICS Business Council Meeting in Johannesburg.
Some of the key decisions arrived at the BRICS
Business Council to enhance cooperation
include working with governments for issue of
multiple-entry business visas for longer
periods to ease travel for business people
within the bloc; promoting the idea of creation
of a BRICS business travel card and working
towards creation of an information exchange
platform – a BRICS business portal – that will
enable businesses to access information on
trade and investment opportunities across
countries.
September 2013 37n nFICCI Business Digest
First is the dim prospects of
global growth which is projected to
remain subdued at slightly above
three per cent in 2013, the same as
in 2012. This is less than forecasted
in April 2013 by the IMF, driven to
a large extent by appreciably
weaker domestic demand, slower
growth in several key emerging
market economies and a more
protracted recession in the Euro
area.
Second is the enduring strength
of the grouping which they can ill
afford to squander at a time when
their performance holds forth
optimism amidst the lingering
slowdown. The BRICS countries
account for 43 per cent of the
world's population, around 20 per
cent of its GDP and 40 per cent of
its currency reserves. In 2011, total
trade of the BRICS grouping
amounted to US$ 5.8 trillion
representing 17 per cent of the
global trade. Though some of the
BRICS nations are grappling with
problems in their economies, China
continues to demonstrate high
rates of economic growth, India is
showing a reasonable five per cent
growth and the other three - Brazil,
Russia and South Africa - too are
showing convincing results.
Third is that Africa with its
untapped potential and growing
economic prowess has emerged as
an asset which the BRICS need to
cultivate. The BRICS-Africa
partnership has only got stronger.
Africa's trade with BRICS has grown
faster than with any other region in
the world, doubling since 2007 to
$340 billion in 2012, and projected
to reach $500 billion by 2015.
Given these imperatives, some of
the key decisions arrived at the
BRICS Business Council to enhance
cooperation include working with
governments for issue of multiple-
entry business visas for longer
periods to ease travel for business
people within the bloc; promoting
the idea of creation of a BRICS
business travel card and working
towards creation of an information
exchange platform - a BRICS
business portal - that will enable
businesses to access information
on trade and investment
opportunities across countries.
Some of the other areas for
promoting cooperation that
emanated during discussions at this
meeting included investment
facilitation for joint ventures,
setting up of special economic
zones and dedicated industrial
clusters for economic value
addition in each other's country
and even in Africa, promoting
dialogue on energy security
through a BRICS hydrocarbons
forum and encouraging direct
business-to-business interactions
by hosting specialised trade fairs in
sectors such as agriculture and
engineering.
Members of the BRICS Business
Council also decided to take steps
to deepen economic engagement
with Africa keeping an eye on their
development needs.
Members of both the BRICS
grouping as well as the African
region face an acute challenge of
developing the infrastructure
sector in their respective countries.
Development of infrastructure can
be an important driver of growth
and with this in mind, the BRICS
Business Council agreed to
promote public-private
partnerships among the five
emerging economies and
collaborate in exploring a
number of 'tangible projects'
such as India's North-South
Corridor projects comprising
large-scale transport, energy
and water projects.
Members were also keen to
jointly promote Africa's
infrastructure and construction
sector. The idea to jointly
participate in major African
transnational projects including
those proposed by the G-20, the
African Union and sub-regional
organisations can turn them into a
driving force for deepening
economic integration and
improving people's livelihoods in
Africa, resonated at this meeting. n
Some of the other areas for promoting cooperation
include investment facilitation for joint ventures,
setting up of special economic zones and dedicated
industrial clusters for economic value addition in each
other's country and even in Africa, promoting dialogue
on energy security through a BRICS hydrocarbons
forum and encouraging direct business-to-business
interactions by hosting specialised trade fairs in sectors
such as agriculture and engineering.
BRICS gets down to business amidst lingering global slowdown
38 FICCI Business Digest n n September 2013
ungary, located in the
heart of Europe, has Hemerged as a highly
rewarding investment destination.
The reasons are not far to seek. Its
geographical location is ideally
suited for manufacturing, services
and logistics; it has excellent
infrastructure, ready-made
industrial sites, offices and science
parks, a good balance of labour
costs and quality, an investment-
friendly economic policy and a
competitive tax and incentive
Hungary, an investment destination few can afford to ignore
MessageIt 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
common history shaped the friendly relations of the two nations based on mutual respect
for traditions.
Economic relations between the two countries in the 21st century have been adding special
value to this friendship and became part of the cause of the tremendous interactions
amongst our peoples and businesses. Over times both countries became frontrunners of
change in their own region, India prides herself being amongst the fastest growing
economies of the world. As the largest democracy, your country is unanimous with peaceful
development and respect for other cultures and beliefs around the globe.
This is the very basis on which the Government of Prime Minister Viktor Orbán of Hungary
considers India a strategic partner. Hungary closely follows the remarkable change Asia
brings about. In this vein the Primes Minister has personally been engaged to turn to the
East as the new foreign policy strategy of Hungary so captures the essence of our
commitment to the region, with giving special prominence to India. The upcoming state
visit of Prime Minister Viktor Orbán along with a sizeable delegation of representatives of
the Hungarian business community marks the ever intensifying bilateral ties and the
special importance trade relations have played over the last couple of years.
FICCI has been a steadfast and trustworthy partner in furthering Indo-Hungarian relations,
and displaying invaluable engagement in advancing our mutually beneficial cause. On this
note I am pleased to share with you a brief overview of Hungary.
Dr. János Terényi,
Ambassador of Hungary
system.
What's more, Hungary offers
access to a market of 250 million
people within a 1000 km radius,
and the EU common market
consists of more than 500 million
people. With labour costs roughly
60 per cent than the rest of the
European economies, Hungary is
the ideal base for investors who are
planning business developments,
including those coming from
distant countries and wishing to
seize European markets.
September 2013 39n nFICCI Business Digest
Foreign capital is, in a large part,
attracted by the highly skilled and
highly educated labour force,
particularly in the engineering, IT,
pharmaceutical, economics,
mathematics, physics and
professional services sectors. High
English proficiency (90% of
students speak English) and high
number of working hours per year
make Hungarians a highly efficient
workforce.
The Hungarian Government is
committed to easing the
functioning of business and
increasing the competitiveness of
both SMEs and large enterprises in
Hungary. The focus is on high value
added activities, like Centres of
Excellence, research and
development, high value added
production.
As a member of the European
Union, Hungary can offer a broad
scale of subsidies for the potential
investors. The Hungarian
Investment and Trade Agency (HITA
- www.hita.hu) is at the disposal of
the Indian companies to provide
tailor-made information about the
best incentive solutions for them. In
case of investments that exceed
EUR 10 million HITA provides VIP
status for the investor.
The investments of the foreign
companies and the continuous
reinvestments of the local ones
indicate that Hungary is
competitive regarding both the
business environment and the
incentive system. In 2012 a total of
EUR 3 billion flowed into Hungary
in the way of foreign direct
investment, raising the total
Hungarian FDI portfolio to EUR
75.4 billion.
Hungarian Investment and Trade
Agency
The Hungarian Investment and
Trade Agency (HITA) was
established by the Government to
promote the export activities of
Hungarian SMEs and to encourage
foreign businesses to invest in
Hungary. HITA organises more than
200 promotional programme in a
year to achieve these goals. The
Agency has 63 representatives in 50
countries and 15 regional offices in
Hungary. In India they have an
office in New Delhi.
HITA provides large scale of
services to the potential investors
such as one-stop system for
information for foreign investors,
information on the Hungarian
investment incentive and support
programmes, meetings and
consultations with the central and
local government officials, logistic
assistance during the site selection
process, identification of the local
suppliers, HR resources etc.
At the moment HITA is managing
nearly 100 potential investment
projects, which also includes Indian
companies, in the field of shared
service centres and electronics. The
total investment value of these
projects reach over EUR 2.2 billion
with possible creation of more than
14800 new jobs.
Indo-Hungarian Strategic
Research Fund
The Fund has been destined,
since its establishment in 2008, to
finance joint science and
technology projects mutually
identified for co-funding by each
Government's relevant
subordinated agencies. The
allocable budget of the Indo-
Hungarian Strategic Research Fund
is EUR 1 million per year.
There has been a widespread
consensus that the Fund needed to
be operated effectively. Only
successful and forward-looking
joint projects representing high
professional standards should
collaboratively be accomplished by
researchers of the two countries.
One of the most suitable means
of tapping the full potential of
Indo-Hungarian science and
technology cooperation, as
included in the bilaterally invited
calls for proposals upon joint
science and technology projects,
present itself in the form of
conducting applied research aimed
at the development of competitive
and marketable products and
services in the following areas:
vInformation and communication
technologies
vEarth sciences
vBiological sciences
vHealthcare industry
vGreen chemistry
vNanotechnology ad the
development of new materials
vDefence industry
vSpace research
vOptics and laser physics
vWater treatment and purification
vAgriculture n
38 FICCI Business Digest n n September 2013
ungary, located in the
heart of Europe, has Hemerged as a highly
rewarding investment destination.
The reasons are not far to seek. Its
geographical location is ideally
suited for manufacturing, services
and logistics; it has excellent
infrastructure, ready-made
industrial sites, offices and science
parks, a good balance of labour
costs and quality, an investment-
friendly economic policy and a
competitive tax and incentive
Hungary, an investment destination few can afford to ignore
MessageIt 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
common history shaped the friendly relations of the two nations based on mutual respect
for traditions.
Economic relations between the two countries in the 21st century have been adding special
value to this friendship and became part of the cause of the tremendous interactions
amongst our peoples and businesses. Over times both countries became frontrunners of
change in their own region, India prides herself being amongst the fastest growing
economies of the world. As the largest democracy, your country is unanimous with peaceful
development and respect for other cultures and beliefs around the globe.
This is the very basis on which the Government of Prime Minister Viktor Orbán of Hungary
considers India a strategic partner. Hungary closely follows the remarkable change Asia
brings about. In this vein the Primes Minister has personally been engaged to turn to the
East as the new foreign policy strategy of Hungary so captures the essence of our
commitment to the region, with giving special prominence to India. The upcoming state
visit of Prime Minister Viktor Orbán along with a sizeable delegation of representatives of
the Hungarian business community marks the ever intensifying bilateral ties and the
special importance trade relations have played over the last couple of years.
FICCI has been a steadfast and trustworthy partner in furthering Indo-Hungarian relations,
and displaying invaluable engagement in advancing our mutually beneficial cause. On this
note I am pleased to share with you a brief overview of Hungary.
Dr. János Terényi,
Ambassador of Hungary
system.
What's more, Hungary offers
access to a market of 250 million
people within a 1000 km radius,
and the EU common market
consists of more than 500 million
people. With labour costs roughly
60 per cent than the rest of the
European economies, Hungary is
the ideal base for investors who are
planning business developments,
including those coming from
distant countries and wishing to
seize European markets.
September 2013 39n nFICCI Business Digest
Foreign capital is, in a large part,
attracted by the highly skilled and
highly educated labour force,
particularly in the engineering, IT,
pharmaceutical, economics,
mathematics, physics and
professional services sectors. High
English proficiency (90% of
students speak English) and high
number of working hours per year
make Hungarians a highly efficient
workforce.
The Hungarian Government is
committed to easing the
functioning of business and
increasing the competitiveness of
both SMEs and large enterprises in
Hungary. The focus is on high value
added activities, like Centres of
Excellence, research and
development, high value added
production.
As a member of the European
Union, Hungary can offer a broad
scale of subsidies for the potential
investors. The Hungarian
Investment and Trade Agency (HITA
- www.hita.hu) is at the disposal of
the Indian companies to provide
tailor-made information about the
best incentive solutions for them. In
case of investments that exceed
EUR 10 million HITA provides VIP
status for the investor.
The investments of the foreign
companies and the continuous
reinvestments of the local ones
indicate that Hungary is
competitive regarding both the
business environment and the
incentive system. In 2012 a total of
EUR 3 billion flowed into Hungary
in the way of foreign direct
investment, raising the total
Hungarian FDI portfolio to EUR
75.4 billion.
Hungarian Investment and Trade
Agency
The Hungarian Investment and
Trade Agency (HITA) was
established by the Government to
promote the export activities of
Hungarian SMEs and to encourage
foreign businesses to invest in
Hungary. HITA organises more than
200 promotional programme in a
year to achieve these goals. The
Agency has 63 representatives in 50
countries and 15 regional offices in
Hungary. In India they have an
office in New Delhi.
HITA provides large scale of
services to the potential investors
such as one-stop system for
information for foreign investors,
information on the Hungarian
investment incentive and support
programmes, meetings and
consultations with the central and
local government officials, logistic
assistance during the site selection
process, identification of the local
suppliers, HR resources etc.
At the moment HITA is managing
nearly 100 potential investment
projects, which also includes Indian
companies, in the field of shared
service centres and electronics. The
total investment value of these
projects reach over EUR 2.2 billion
with possible creation of more than
14800 new jobs.
Indo-Hungarian Strategic
Research Fund
The Fund has been destined,
since its establishment in 2008, to
finance joint science and
technology projects mutually
identified for co-funding by each
Government's relevant
subordinated agencies. The
allocable budget of the Indo-
Hungarian Strategic Research Fund
is EUR 1 million per year.
There has been a widespread
consensus that the Fund needed to
be operated effectively. Only
successful and forward-looking
joint projects representing high
professional standards should
collaboratively be accomplished by
researchers of the two countries.
One of the most suitable means
of tapping the full potential of
Indo-Hungarian science and
technology cooperation, as
included in the bilaterally invited
calls for proposals upon joint
science and technology projects,
present itself in the form of
conducting applied research aimed
at the development of competitive
and marketable products and
services in the following areas:
vInformation and communication
technologies
vEarth sciences
vBiological sciences
vHealthcare industry
vGreen chemistry
vNanotechnology ad the
development of new materials
vDefence industry
vSpace research
vOptics and laser physics
vWater treatment and purification
vAgriculture n
Uttarakhand Task Force 'Harness new technologies to meet
aspirations of consumers'
40 FICCI Business Digest n n September 2013 August 2013 27n nFICCI Business Digest
he National Book Trust (NBT)
is actively engaging with the Tpublishing industry to reach
unexplored markets such as Africa
and South Asia. It is looking for
long term investment opportunities
in the publishing sector under
India-Africa Forum.
This was stated by M A Sikandar,
Director, NBT, Ministry of Human
Resource Development,
Government of India, at ‘PubliCon
2013’ organised by FICCI on the
theme ‘Export Markets’ with special
focus on Africa and South Asia, in
New Delhi on September 10, 2013.
Sikandar called for leveraging
India’s strength in publishing
academic books in English and said
NBT’s key mandate is to promote
Indian publishing industry both in
the country and overseas.
Ira Joshi, Additional Director
General, Publications Division,
Ministry of Information and
Broadcasting, Government of India,
said that with the advent of new
technology, e-publishing and e-
marketing are rapidly gaining a
foothold. “We need to leverage this
new technology to our advantage
collaborations. African nations and
India would benefit from
leveraging India as a publishing
hub for all publishing services.”
Urvashi Butalia, Chairperson,
FICCI Publishing Committee and
Director, Zubaan, said a large
Indian Diaspora is based out of
African countries and now African
authors are well-known in India.
Hence, Africa is a lucrative market
for Indian publishing industry. India
and Africa are both emerging
economies and have similar issues
which will help them better
understand each other and
develop an egalitarian relationship.
Himanshu Gupta, Co-chair, FICCI
Publishing Committee and Joint
Managing Director, S. Chand
Group, said that India produces
publishing materials at one-tenth
of the cost incurred by the US and
the UK publishing sector. Africa and
South Asia are markets where
Indian publishers have shown great
interest for export of educational
content. India, publishing has a lot
to offer in terms of new ideas and
innovative concepts. n
as e-publishing is an important
source of revenue,” she added.
Tokunbo Falohun, Minister,
Nigeria High Commission, said that
Africa offers Indian publishing an
excellent opportunity to export
school and higher academic
content to the African continent.
India publishes books of
international standard, and is
comparatively cheaper than their
Western counterparts. This offers a
good option to scale export of
books to African countries.
Rohit Kumar, Managing Director -
South Asia, Reed Elsevier India Pvt.
Ltd., said, “We have the experience
as a country to produce low cost,
affordable content that is relevant
to local markets hence this is a
natural extension of our historical
Africa offers Indian
publishing an excellent
opportunity to export
school and higher
academic content to the
African continent.
September 2013 41n nFICCI Business Digest
Indian publishing industryAfrican and South Asian nations
reaching out to
Dignitaries at the 'PubliCon 2013'.
Uttarakhand Task Force 'Harness new technologies to meet
aspirations of consumers'
40 FICCI Business Digest n n September 2013 August 2013 27n nFICCI Business Digest
he National Book Trust (NBT)
is actively engaging with the Tpublishing industry to reach
unexplored markets such as Africa
and South Asia. It is looking for
long term investment opportunities
in the publishing sector under
India-Africa Forum.
This was stated by M A Sikandar,
Director, NBT, Ministry of Human
Resource Development,
Government of India, at ‘PubliCon
2013’ organised by FICCI on the
theme ‘Export Markets’ with special
focus on Africa and South Asia, in
New Delhi on September 10, 2013.
Sikandar called for leveraging
India’s strength in publishing
academic books in English and said
NBT’s key mandate is to promote
Indian publishing industry both in
the country and overseas.
Ira Joshi, Additional Director
General, Publications Division,
Ministry of Information and
Broadcasting, Government of India,
said that with the advent of new
technology, e-publishing and e-
marketing are rapidly gaining a
foothold. “We need to leverage this
new technology to our advantage
collaborations. African nations and
India would benefit from
leveraging India as a publishing
hub for all publishing services.”
Urvashi Butalia, Chairperson,
FICCI Publishing Committee and
Director, Zubaan, said a large
Indian Diaspora is based out of
African countries and now African
authors are well-known in India.
Hence, Africa is a lucrative market
for Indian publishing industry. India
and Africa are both emerging
economies and have similar issues
which will help them better
understand each other and
develop an egalitarian relationship.
Himanshu Gupta, Co-chair, FICCI
Publishing Committee and Joint
Managing Director, S. Chand
Group, said that India produces
publishing materials at one-tenth
of the cost incurred by the US and
the UK publishing sector. Africa and
South Asia are markets where
Indian publishers have shown great
interest for export of educational
content. India, publishing has a lot
to offer in terms of new ideas and
innovative concepts. n
as e-publishing is an important
source of revenue,” she added.
Tokunbo Falohun, Minister,
Nigeria High Commission, said that
Africa offers Indian publishing an
excellent opportunity to export
school and higher academic
content to the African continent.
India publishes books of
international standard, and is
comparatively cheaper than their
Western counterparts. This offers a
good option to scale export of
books to African countries.
Rohit Kumar, Managing Director -
South Asia, Reed Elsevier India Pvt.
Ltd., said, “We have the experience
as a country to produce low cost,
affordable content that is relevant
to local markets hence this is a
natural extension of our historical
Africa offers Indian
publishing an excellent
opportunity to export
school and higher
academic content to the
African continent.
September 2013 41n nFICCI Business Digest
Indian publishing industryAfrican and South Asian nations
reaching out to
Dignitaries at the 'PubliCon 2013'.
about the innovative land
acquisition model that the state has
adopted, under which 22.5% of
developed land is given back to the
original land owner, instead of cash
compensation.
He said the state’s mega project
policy which is facilitating
automotive industry in Mumbai
continues to attract investment,
despite of a clear slowdown. The
state government is also looking
outside Mumbai into areas like
Satara district, Pune etc, where
large automotive investors have
shown serious interest. He spoke
about the ‘Advantage Vidarbha’
programme, which had signed
quite a few MOUs, and is now
being converted into actual
projects.
Chavan underlined the need for
improving the quality of airports in
the state and spoke how the
government is working towards
upgrading all the 22 airports which
will improve connectivity. He also
shared the state’s plan in creating a
permanent mitigation strategy for
drought proofing Maharashtra and
rithviraj Chavan, Chief
Minister of Maharashtra, Paddressed the National
Executive Committee Meeting in
Mumbai on August 30, 2013.
Chavan took a note of the unhappy
mood that is prevalent in the
industry at a point in time which is
critical not just for business and
economy but for the country itself.
He mentioned about the change in
RBI leadership and the directions
that everybody is looking at from
the political leadership, both at the
central and state government.
He spoke about the negative
employment growth and the
uncertainty of jobs that is prevalent
in certain sectors and how we can
look at reversing the trend to
restructure the economy.
Chavan said projects worth Rs.
5000 crore for Mumbai (MMRDA),
from the infrastructural point of
view, in terms of Mumbai Metro,
Monorail, Sahar elevated road,
Eastern freeway and the new
airport terminal, which will be
opened this year. He mentioned
making the state scarcity free and
the Rs. 60,000 crore that has been
set aside for the next three years.
Naina Lal Kidwai, President of
FICCI, noted that important states
like Maharashtra have to play a
lead role in providing the push to
improve the economic growth of
the country. Maharashtra remains
the leading industrial state which
contributes 15 per cent to the
national industrial output in areas
like textile, agri, auto, chemicals,
electrical and pharma and the state
remains to be the second largest
exporter of software products in
India.
Kidwai spoke about the
‘Empowering India – Maharashtra
report’ which was released by the
Chief Minister and expressed
willingness to partner and work
with the state on the key
regulations across 12 variables
which are critical for the industry
and outline the way forward
to improve certain business
processes. n
Maharashtra's mega project policy
sees investment flowing in: Chavan
42 FICCI Business Digest n n September 2013
Prithviraj Chavan, Chief Minister of
Maharashtra, flanked by Naina Lal
Kidwai, President, FICCI (right) and
Sidharth Birla, Senior Vice-President,
FICCI.
September 2013 43n nFICCI Business Digest
MEMBER SERVICES & COMMUNICATION TOOLS
Hope you are receiving our communications on:
A series of reports and studies carried out by FICCI's various verticals. These reports can be downloaded from the URL embedded at the end of each report
FICCI Knowledge Papers
A compilation of issues where we have represented FICCI in different consultative mechanisms in the policy domain and through media
FICCI's Voice – Secretary General's Desk
A monthly compilation of media coverage on FICCI activities comprising events, surveys, knowledge paper and policy recommendations
FICCI In Media
A monthly compilation of media coverage on FICCI activities comprising events, surveys, knowledge work, policy recommendations
FICCI Social Media Networks
To receive these services write to [email protected]
facebook.com/ficciindia slideshare.net/ficciindia
pinterest.com/ficciindiatwitter.com/ficci_india
blog.ficci.com
FICCI website www.ficci.com
• MANUFACTURING MANDATE
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 weneed to prioritize policies and measures which would ensure that manufacturing rebounds and creates jobs forthe 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 apotential to create 67 million jobs in manufacturing directly, provided some pro‐active labour market policiesare implemented as suggested in the mandate. With 10% manufacturing growth, we can achieve a size of $950billion by 2025 from the current size of $ 250 billion for our manufacturing sector and take the totalemployment in manufacturing to 115 million during the period. While, this remains short of the targetedadditional employment of 100 million by 2025 as per the National Manufacturing Policy this would be morerealistic given the current economic scenario.
Since manufacturing has to bear a major proportion of job creation in times to come it is important that anenabling policy framework for attracting skilled, semi‐skilled or unskilled workers in the sector is provided. TheMandate suggests twelve broad areas with specific measures for the short and long term, to stimulate growthand job creation in manufacturing on a sustainable basis. These twelve areas are as follows:
1. Macro Economic Environment and Measures2. Taxation3. Labour Policies and Workers’ Housing4. Feedstock, Raw materials & Electricity for Manufacturing5. Land for manufacturing6. Industrial Corridors and Clusters7. Ease of Doing Business8. Infrastructure9. Free Trade Agreements & International trade10. MSME11. Stimulating Demand12. Skill Development
FICCI SURVEY: SLIGHT UPTURN IN MANUFACTURING IN QUARTER II 2013‐14 ‐ FICCI’s latest Quarterly Survey
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.
The proportion of respondents reporting higher levels of production in second quarter of 2013‐14 hasimproved to 47% as compared to over 35% in previous quarter. Similarly, proportion of respondents expecting
about the innovative land
acquisition model that the state has
adopted, under which 22.5% of
developed land is given back to the
original land owner, instead of cash
compensation.
He said the state’s mega project
policy which is facilitating
automotive industry in Mumbai
continues to attract investment,
despite of a clear slowdown. The
state government is also looking
outside Mumbai into areas like
Satara district, Pune etc, where
large automotive investors have
shown serious interest. He spoke
about the ‘Advantage Vidarbha’
programme, which had signed
quite a few MOUs, and is now
being converted into actual
projects.
Chavan underlined the need for
improving the quality of airports in
the state and spoke how the
government is working towards
upgrading all the 22 airports which
will improve connectivity. He also
shared the state’s plan in creating a
permanent mitigation strategy for
drought proofing Maharashtra and
rithviraj Chavan, Chief
Minister of Maharashtra, Paddressed the National
Executive Committee Meeting in
Mumbai on August 30, 2013.
Chavan took a note of the unhappy
mood that is prevalent in the
industry at a point in time which is
critical not just for business and
economy but for the country itself.
He mentioned about the change in
RBI leadership and the directions
that everybody is looking at from
the political leadership, both at the
central and state government.
He spoke about the negative
employment growth and the
uncertainty of jobs that is prevalent
in certain sectors and how we can
look at reversing the trend to
restructure the economy.
Chavan said projects worth Rs.
5000 crore for Mumbai (MMRDA),
from the infrastructural point of
view, in terms of Mumbai Metro,
Monorail, Sahar elevated road,
Eastern freeway and the new
airport terminal, which will be
opened this year. He mentioned
making the state scarcity free and
the Rs. 60,000 crore that has been
set aside for the next three years.
Naina Lal Kidwai, President of
FICCI, noted that important states
like Maharashtra have to play a
lead role in providing the push to
improve the economic growth of
the country. Maharashtra remains
the leading industrial state which
contributes 15 per cent to the
national industrial output in areas
like textile, agri, auto, chemicals,
electrical and pharma and the state
remains to be the second largest
exporter of software products in
India.
Kidwai spoke about the
‘Empowering India – Maharashtra
report’ which was released by the
Chief Minister and expressed
willingness to partner and work
with the state on the key
regulations across 12 variables
which are critical for the industry
and outline the way forward
to improve certain business
processes. n
Maharashtra's mega project policy
sees investment flowing in: Chavan
42 FICCI Business Digest n n September 2013
Prithviraj Chavan, Chief Minister of
Maharashtra, flanked by Naina Lal
Kidwai, President, FICCI (right) and
Sidharth Birla, Senior Vice-President,
FICCI.
September 2013 43n nFICCI Business Digest
MEMBER SERVICES & COMMUNICATION TOOLS
Hope you are receiving our communications on:
A series of reports and studies carried out by FICCI's various verticals. These reports can be downloaded from the URL embedded at the end of each report
FICCI Knowledge Papers
A compilation of issues where we have represented FICCI in different consultative mechanisms in the policy domain and through media
FICCI's Voice – Secretary General's Desk
A monthly compilation of media coverage on FICCI activities comprising events, surveys, knowledge paper and policy recommendations
FICCI In Media
A monthly compilation of media coverage on FICCI activities comprising events, surveys, knowledge work, policy recommendations
FICCI Social Media Networks
To receive these services write to [email protected]
facebook.com/ficciindia slideshare.net/ficciindia
pinterest.com/ficciindiatwitter.com/ficci_india
blog.ficci.com
FICCI website www.ficci.com
• MANUFACTURING MANDATE
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 weneed to prioritize policies and measures which would ensure that manufacturing rebounds and creates jobs forthe 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 apotential to create 67 million jobs in manufacturing directly, provided some pro‐active labour market policiesare implemented as suggested in the mandate. With 10% manufacturing growth, we can achieve a size of $950billion by 2025 from the current size of $ 250 billion for our manufacturing sector and take the totalemployment in manufacturing to 115 million during the period. While, this remains short of the targetedadditional employment of 100 million by 2025 as per the National Manufacturing Policy this would be morerealistic given the current economic scenario.
Since manufacturing has to bear a major proportion of job creation in times to come it is important that anenabling policy framework for attracting skilled, semi‐skilled or unskilled workers in the sector is provided. TheMandate suggests twelve broad areas with specific measures for the short and long term, to stimulate growthand job creation in manufacturing on a sustainable basis. These twelve areas are as follows:
1. Macro Economic Environment and Measures2. Taxation3. Labour Policies and Workers’ Housing4. Feedstock, Raw materials & Electricity for Manufacturing5. Land for manufacturing6. Industrial Corridors and Clusters7. Ease of Doing Business8. Infrastructure9. Free Trade Agreements & International trade10. MSME11. Stimulating Demand12. Skill Development
FICCI SURVEY: SLIGHT UPTURN IN MANUFACTURING IN QUARTER II 2013‐14 ‐ FICCI’s latest Quarterly Survey
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.
The proportion of respondents reporting higher levels of production in second quarter of 2013‐14 hasimproved to 47% as compared to over 35% in previous quarter. Similarly, proportion of respondents expecting
he 10th edition of the
Banking Conclave was Torganised in Kolkata during
July 24-August 31, 2013 on the
theme 'Indian Banking Industry:
Capturing New Growth
Opportunities'. Banking Conclave is
the flagship programme of FICCI
West Bengal State Council (WBSC)
where Chairmen and Managing
Directors of leading banks address
FICCI members in exclusive
sessions. The conclave over the
years has emerged as a leading
platform where bankers and
industrialists interact with each
other and exchange their ideas and
views.
The inaugural session of the
conclave was addressed by Pratip
Chaudhuri, Chairman, State Bank of
India, who said as growth requires
capital, India is extremely fortunate
that the gross domestic savings as
a percentage of GDP is 30 per cent
in the country. Controlling inflation,
stimulating economic growth and
stabilising rupee parity are the
three pre-dominant concerns in the
economy. Commenting on human
resource management , Chaudhuri
said banks should no longer be
governed by bureaucracy but by
meritocracy and staff should be
more empowered.
The FICCI-KPMG study on 'Public
Sector Banks - Profiling the
leadership landscape' was released
in the inaugural session. The report
focuses on one of the key issues for
Indian banking sector - human
resource management and
leadership skill which can be
looked as both an opportunity and
challenge.
Ashwani Kumar, CMD, Dena Bank,
indicated financial inclusion is not
only a challenge but an
opportunity for the banks to tap
the huge unbanked market space
and banks should focus on
building a profitable business
model to address this issue. The
banks would have an opportunity
of opening accounts of subsidy
beneficiaries to boost their CASA.
The banking industry in India
needs to find cost-effective ways to
serve the SME customers where
yields are quite high. CMD
mentioned that Dena Bank is
planning to open at least 12
L to R: Ambarish Dasgupta, Partner & Head of Management Consulting, KPMG; Gaurav Swarup, Chairman, FICCI-WBSC; Pratip
Chaudhuri, Chairman, State Bank of India; Sanjay Chamria, Vice Chairman & MD, Magma FinCorp and Pavan Poddar, Co-Chairman,
FICCI WBSC.
t IN THE STATES
10th Banking Conclave 2013 'Govern banks on meritocracy not bureaucracy; empower bankers'
branches in West Bengal this fiscal.
Addressing the Banking Conclave,
S S Mundra, CMD, Bank of Baroda,
said though the GDP growth has
witnessed a fastest slide from 9 to 5
per cent within a passage of 2-3
years, Indian economy has shown
lot of strength and resilience. With
a good monsoon, formation of
Cabinet Committee on Investment,
progress in restructuring of various
discoms' debts, correction in global
commodity price, end of recession
in USA and Europe – the economy
has lot of opportunities. The
challenges for the public sector
banks are human resource
challenge, rising NPAs, pressure on
profitability, fresh capital need,
rising customer expectation, rising
Growth requires
capital, India is
extremely fortunate
that the gross
domestic savings as a
percentage of GDP is
30 per cent in the
country.
44 FICCI Business Digest n n September 2013 August 2013 37n nFICCI Business Digest
t IN THE STATES
regulatory control and increasing
competition.
According to D Sarkar, CMD,
Union Bank of India, the key
challenges for banking industry in
the current macroeconomic
scenario include shrinking loan
making opportunities, deteriorating
asset quality, rising cost of fund,
shrinking price margins, increased
capital requirements under Basel III
and new entrants to competition to
raise attrition. Talking on financial
inclusion, the CMD mentioned
Union Bank has extended its reach
to 29497 unbanked/under banked
villages.
R K Dubey, CMD, Canara Bank,
mentioned that reflecting the
economic woes, Indian banking
sector is also facing the constraints
on several fronts. Exchange rate
stability at the moment is emerging
as the crucial factor for bringing
normalcy to the markets. CMD
stated that amidst all the
turbulence, there are several
opportunities for banks – MSME &
Retail sector, reaching out to
unserved and underserved
population, wealth management
services and new technology. The
CMD mentioned Canara Bank's
gross NPA ratio is contained at 2.57
per cent as on March 13 compared
to the industry ratio of 3.4 per cent
and the bank is taking all possible
steps to arrest slippages, contain
NPA and increase recovery.
The concluding session was
addressed by T CA Ranganathan,
public awareness building
programme was organized Ain Chennai on August 27,
2013, on the Madrid System for the
International Registration of Marks
was organised by the World
Intellectual Property Organization
(WIPO) and the Office of the
CMD, Exim Bank of India, who
mentioned India's share in global
exports increased threefold from
0.5 per cent in 1990 to 1.6 per cent
in 2012. Slow growth in
manufacturing sector and
burgeoning manufacturing trade
deficit has aggravated CAD.
According to CMD, market
diversification in line with demand
existing in potential markets can
boost the export industry. Also,
there is a need to move up the
value chain to reduce investment
mismatch or collaborate with
similar firms to achieve economies
of scale. The CMD mentioned
MSMEs are undergoing severe
stress and if they work in cluster
environment they can reach high
levels of competitiveness. n
Controller-General of Patents,
Designs and Trademarks in
cooperation with FICCI.
More than 150 delegates
participated in the programme,
which comprised senior
professionals and experts from the
industry, IP attorneys, FMCGs,
drugs, chemical & pharma,
manufacturing industry,
government, researchers, MSMEs
innovators, academicians,
consultants and IT/KPO companies
in IP domain.
Chaitanya Prasad, Controller
General of Patents, Designs and
Registration of trademarks not compulsory, but
advisable for protection against any misuse
L to R: Jonathan Clegg, Partner, Cleveland, London; Naresh Prasad, Executive Director and Chief of Staff, Office of the Director
General, Director General, World Intellectual Property Organization (WIPO), Geneva; Chaitanya Prasad, Controller General of Patents,
Designs and Trademark, Government of India; P Murari, Adviser to FICCI President; Antonina Stoyanova, Counsellor, Information and
Promotion Division, Madrid Registry, Brands and Designs Sector, WIPO and Jongan Kim, Director, Information and Promotion
Division, Madrid Registry, Brands and Designs Sector, WIPO.
September 2013 45n nFICCI Business Digest
he 10th edition of the
Banking Conclave was Torganised in Kolkata during
July 24-August 31, 2013 on the
theme 'Indian Banking Industry:
Capturing New Growth
Opportunities'. Banking Conclave is
the flagship programme of FICCI
West Bengal State Council (WBSC)
where Chairmen and Managing
Directors of leading banks address
FICCI members in exclusive
sessions. The conclave over the
years has emerged as a leading
platform where bankers and
industrialists interact with each
other and exchange their ideas and
views.
The inaugural session of the
conclave was addressed by Pratip
Chaudhuri, Chairman, State Bank of
India, who said as growth requires
capital, India is extremely fortunate
that the gross domestic savings as
a percentage of GDP is 30 per cent
in the country. Controlling inflation,
stimulating economic growth and
stabilising rupee parity are the
three pre-dominant concerns in the
economy. Commenting on human
resource management , Chaudhuri
said banks should no longer be
governed by bureaucracy but by
meritocracy and staff should be
more empowered.
The FICCI-KPMG study on 'Public
Sector Banks - Profiling the
leadership landscape' was released
in the inaugural session. The report
focuses on one of the key issues for
Indian banking sector - human
resource management and
leadership skill which can be
looked as both an opportunity and
challenge.
Ashwani Kumar, CMD, Dena Bank,
indicated financial inclusion is not
only a challenge but an
opportunity for the banks to tap
the huge unbanked market space
and banks should focus on
building a profitable business
model to address this issue. The
banks would have an opportunity
of opening accounts of subsidy
beneficiaries to boost their CASA.
The banking industry in India
needs to find cost-effective ways to
serve the SME customers where
yields are quite high. CMD
mentioned that Dena Bank is
planning to open at least 12
L to R: Ambarish Dasgupta, Partner & Head of Management Consulting, KPMG; Gaurav Swarup, Chairman, FICCI-WBSC; Pratip
Chaudhuri, Chairman, State Bank of India; Sanjay Chamria, Vice Chairman & MD, Magma FinCorp and Pavan Poddar, Co-Chairman,
FICCI WBSC.
t IN THE STATES
10th Banking Conclave 2013 'Govern banks on meritocracy not bureaucracy; empower bankers'
branches in West Bengal this fiscal.
Addressing the Banking Conclave,
S S Mundra, CMD, Bank of Baroda,
said though the GDP growth has
witnessed a fastest slide from 9 to 5
per cent within a passage of 2-3
years, Indian economy has shown
lot of strength and resilience. With
a good monsoon, formation of
Cabinet Committee on Investment,
progress in restructuring of various
discoms' debts, correction in global
commodity price, end of recession
in USA and Europe – the economy
has lot of opportunities. The
challenges for the public sector
banks are human resource
challenge, rising NPAs, pressure on
profitability, fresh capital need,
rising customer expectation, rising
Growth requires
capital, India is
extremely fortunate
that the gross
domestic savings as a
percentage of GDP is
30 per cent in the
country.
44 FICCI Business Digest n n September 2013 August 2013 37n nFICCI Business Digest
t IN THE STATES
regulatory control and increasing
competition.
According to D Sarkar, CMD,
Union Bank of India, the key
challenges for banking industry in
the current macroeconomic
scenario include shrinking loan
making opportunities, deteriorating
asset quality, rising cost of fund,
shrinking price margins, increased
capital requirements under Basel III
and new entrants to competition to
raise attrition. Talking on financial
inclusion, the CMD mentioned
Union Bank has extended its reach
to 29497 unbanked/under banked
villages.
R K Dubey, CMD, Canara Bank,
mentioned that reflecting the
economic woes, Indian banking
sector is also facing the constraints
on several fronts. Exchange rate
stability at the moment is emerging
as the crucial factor for bringing
normalcy to the markets. CMD
stated that amidst all the
turbulence, there are several
opportunities for banks – MSME &
Retail sector, reaching out to
unserved and underserved
population, wealth management
services and new technology. The
CMD mentioned Canara Bank's
gross NPA ratio is contained at 2.57
per cent as on March 13 compared
to the industry ratio of 3.4 per cent
and the bank is taking all possible
steps to arrest slippages, contain
NPA and increase recovery.
The concluding session was
addressed by T CA Ranganathan,
public awareness building
programme was organized Ain Chennai on August 27,
2013, on the Madrid System for the
International Registration of Marks
was organised by the World
Intellectual Property Organization
(WIPO) and the Office of the
CMD, Exim Bank of India, who
mentioned India's share in global
exports increased threefold from
0.5 per cent in 1990 to 1.6 per cent
in 2012. Slow growth in
manufacturing sector and
burgeoning manufacturing trade
deficit has aggravated CAD.
According to CMD, market
diversification in line with demand
existing in potential markets can
boost the export industry. Also,
there is a need to move up the
value chain to reduce investment
mismatch or collaborate with
similar firms to achieve economies
of scale. The CMD mentioned
MSMEs are undergoing severe
stress and if they work in cluster
environment they can reach high
levels of competitiveness. n
Controller-General of Patents,
Designs and Trademarks in
cooperation with FICCI.
More than 150 delegates
participated in the programme,
which comprised senior
professionals and experts from the
industry, IP attorneys, FMCGs,
drugs, chemical & pharma,
manufacturing industry,
government, researchers, MSMEs
innovators, academicians,
consultants and IT/KPO companies
in IP domain.
Chaitanya Prasad, Controller
General of Patents, Designs and
Registration of trademarks not compulsory, but
advisable for protection against any misuse
L to R: Jonathan Clegg, Partner, Cleveland, London; Naresh Prasad, Executive Director and Chief of Staff, Office of the Director
General, Director General, World Intellectual Property Organization (WIPO), Geneva; Chaitanya Prasad, Controller General of Patents,
Designs and Trademark, Government of India; P Murari, Adviser to FICCI President; Antonina Stoyanova, Counsellor, Information and
Promotion Division, Madrid Registry, Brands and Designs Sector, WIPO and Jongan Kim, Director, Information and Promotion
Division, Madrid Registry, Brands and Designs Sector, WIPO.
September 2013 45n nFICCI Business Digest
t IN THE STATES
Trademark, Government of India,
said that Chennai has been topping
during the last two years when it
comes to the number of patents
filed. The number of applications
received by the Indian Intellectual
Property Office for registration of
trademarks has been increasing
over the years. As per 2012 World
Intellectual Property Indicators, it
has been increasing by 12 per cent
every year.
Quoting a report published by
WIPO, he said that India's filing
volume surpassed that of Brazil in
2006, Japan's and the Republic of
Korea in 2011. “In 2011, we
received maximum number of
trademark applications in Asia after
China. We were ranked fifth among
the intellectual property offices in
the world when it came to
trademark applications. During
2012-13, the number of
applications received for
registration of trademarks was 1.94
lakh. A trademark is a mark
adopted to distinguish goods or
services of one person from those
of the others,” he explained.
Although the registration of
trademarks is not compulsory, it is
advisable to register it for the
purpose of its recognition and
better protection like any other
valuable property.
Naresh Prasad, Executive Director
and Chief of Staff, Office of the
Director General, Director General,
WIPO, Geneva, said that India was
the 90th country to become a part
of the Madrid System, which is a
low cost and effective system to
facilitate trademark protection in
export markets. There is a lack of
awareness on the benefits of the
system among the industry and
other stakeholders. With a single
application and fee, a company can
register a trademark in 90
countries.
P Murari, Adviser to FICCI, spoke
about the importance of
registration of trademark,
international protection of
trademarks and the Madrid System.
Other speakers were Jongan Kim,
Director, Information and
Promotion, Division, Madrid
Registry, Brands and Designs
Sector, WIPO; Antonina Stoyanova,
Counsellor, Information and
Promotion Division, Madrid
Registry, Brands and Designs
Sector, WIPO; Jonathan Clegg,
Partner, Cleveland, London; V
Natarajan, Deputy Registrar of
Trade Marks & GI, Trade Marks
Registry Chennai; R A Tiwari,
Assistant Registrar of Trade Marks
& GI, Trade Mark Registry Mumbai
and C S Uchil, Senior Examiner of
Trade Marks & GI, Trade Marks
Registry, Mumbai. n
Competition Law allows market to operate freely
and protects consumers' interests
46 FICCI Business Digest n n September 2013
L to R: Rajneesh Bansal, Senior Member, FICCI Punjab, Haryana, HP Advisory Council; Sanjay Khurana, Senior Vice President, BBNIA;
Dr. Satya Prakash, Director (Law), CCI; Amit Tayal, Deputy Director (Law), CCI and Ankush Goyal, PSA Legal Counsellors.
September 2013 47n nFICCI Business Digest
ICCI in association with the
Competition Commission of FIndia (CCI) organised a
seminar on 'Competition Law and
its impact on Industry' on July 26,
2013 in Chandigarh. The seminar
was supported by Baddi Barotiwala
Nalagarh Industries Association
(BBNIA) and PSA Legal Counsellors.
The objective was to maintain and
promote free competition in the
market and to protect the interests
of consumers.
Rajneesh Bansal, Senior Member,
FICCI Punjab, Haryana & HP
Advisory Council & Executive
Director, Paul Merchants Ltd., said
that reform is an ongoing process
and we have to continuously strive
to ensure that our laws and
institutions grow and develop with
the times, encourage
entrepreneurship, investment and
growth and make our corporate
globally competitive.
Sanjay Khurana, Senior Vice
President, BBNIA, advised the trade
associations to have a written
Competition Law Compliance
policy and suggested that policies
should make it clear that members
cannot discuss pricing or other
commercially sensitive issues.
Dr. Satya Prakash, Director (Law),
CCI, while describing the evolution
of Competition Law said that the
CCI set up under the Competition
Act, 2002, is the regulatory body
responsible for ensuring that
competition is promoted and
sustained in the market for the
benefit and welfare of the
industries and, in turn, of the
consumers. He mentioned the
objectives and functions of the CCI.
He further imparted details on
information filing, powers of the
commission and Competition
Compliance Programme.
Describing the basic difference
between Monopolies and
Restrictive Trade Practices (MRTP)
Act and Competition Act, Ankush
Goyal, PSA Legal Counsellors, said
that the basic goal of the MRTP Act
was to prevent the economic
concentration in one common
detriment, curbing unfair trade
practices, and to check
monopolistic activities. On the
other hand, the object of the
Competition Act is to promote and
sustain competition in the market
and to ensure the freedom of trade
and to protect the interest of the
consumer in whole. He explained in
detail the Anti-competitive
Agreement, dominance and its
abuse with the help of case studies.
The applicability of Competition
Law to trade associations,
Competition Compliance
Programme and the role of trade
associations in promoting the
competition compliance were
covered in a presentation by Amit
Tayal, Deputy Director (Law), CCI.
He said, at the level of trade
associations, it is important to bear
in mind that regardless of good
intentions of the trade association
and its members, if the effect of
conduct is to restrict competition,
the activity may be illegal, and
infringement does not require
actual adverse effect on the market,
the mere intention to impede
competition is sufficient.
Infringement can attract penal
liability. Therefore, it is the
responsibility of the association
and its members to ensure
compliance with the law.
The seminar provided the much-
needed one-on-one understanding
of the Competition Law to more
than 35 delegates including
representatives of local trade
associations. n
The object of the
Competition Act is to
promote and sustain
competition in the
market and to ensure
the freedom of trade
and to protect the
interest of the
consumer in whole.
t IN THE STATES
t IN THE STATES
Trademark, Government of India,
said that Chennai has been topping
during the last two years when it
comes to the number of patents
filed. The number of applications
received by the Indian Intellectual
Property Office for registration of
trademarks has been increasing
over the years. As per 2012 World
Intellectual Property Indicators, it
has been increasing by 12 per cent
every year.
Quoting a report published by
WIPO, he said that India's filing
volume surpassed that of Brazil in
2006, Japan's and the Republic of
Korea in 2011. “In 2011, we
received maximum number of
trademark applications in Asia after
China. We were ranked fifth among
the intellectual property offices in
the world when it came to
trademark applications. During
2012-13, the number of
applications received for
registration of trademarks was 1.94
lakh. A trademark is a mark
adopted to distinguish goods or
services of one person from those
of the others,” he explained.
Although the registration of
trademarks is not compulsory, it is
advisable to register it for the
purpose of its recognition and
better protection like any other
valuable property.
Naresh Prasad, Executive Director
and Chief of Staff, Office of the
Director General, Director General,
WIPO, Geneva, said that India was
the 90th country to become a part
of the Madrid System, which is a
low cost and effective system to
facilitate trademark protection in
export markets. There is a lack of
awareness on the benefits of the
system among the industry and
other stakeholders. With a single
application and fee, a company can
register a trademark in 90
countries.
P Murari, Adviser to FICCI, spoke
about the importance of
registration of trademark,
international protection of
trademarks and the Madrid System.
Other speakers were Jongan Kim,
Director, Information and
Promotion, Division, Madrid
Registry, Brands and Designs
Sector, WIPO; Antonina Stoyanova,
Counsellor, Information and
Promotion Division, Madrid
Registry, Brands and Designs
Sector, WIPO; Jonathan Clegg,
Partner, Cleveland, London; V
Natarajan, Deputy Registrar of
Trade Marks & GI, Trade Marks
Registry Chennai; R A Tiwari,
Assistant Registrar of Trade Marks
& GI, Trade Mark Registry Mumbai
and C S Uchil, Senior Examiner of
Trade Marks & GI, Trade Marks
Registry, Mumbai. n
Competition Law allows market to operate freely
and protects consumers' interests
46 FICCI Business Digest n n September 2013
L to R: Rajneesh Bansal, Senior Member, FICCI Punjab, Haryana, HP Advisory Council; Sanjay Khurana, Senior Vice President, BBNIA;
Dr. Satya Prakash, Director (Law), CCI; Amit Tayal, Deputy Director (Law), CCI and Ankush Goyal, PSA Legal Counsellors.
September 2013 47n nFICCI Business Digest
ICCI in association with the
Competition Commission of FIndia (CCI) organised a
seminar on 'Competition Law and
its impact on Industry' on July 26,
2013 in Chandigarh. The seminar
was supported by Baddi Barotiwala
Nalagarh Industries Association
(BBNIA) and PSA Legal Counsellors.
The objective was to maintain and
promote free competition in the
market and to protect the interests
of consumers.
Rajneesh Bansal, Senior Member,
FICCI Punjab, Haryana & HP
Advisory Council & Executive
Director, Paul Merchants Ltd., said
that reform is an ongoing process
and we have to continuously strive
to ensure that our laws and
institutions grow and develop with
the times, encourage
entrepreneurship, investment and
growth and make our corporate
globally competitive.
Sanjay Khurana, Senior Vice
President, BBNIA, advised the trade
associations to have a written
Competition Law Compliance
policy and suggested that policies
should make it clear that members
cannot discuss pricing or other
commercially sensitive issues.
Dr. Satya Prakash, Director (Law),
CCI, while describing the evolution
of Competition Law said that the
CCI set up under the Competition
Act, 2002, is the regulatory body
responsible for ensuring that
competition is promoted and
sustained in the market for the
benefit and welfare of the
industries and, in turn, of the
consumers. He mentioned the
objectives and functions of the CCI.
He further imparted details on
information filing, powers of the
commission and Competition
Compliance Programme.
Describing the basic difference
between Monopolies and
Restrictive Trade Practices (MRTP)
Act and Competition Act, Ankush
Goyal, PSA Legal Counsellors, said
that the basic goal of the MRTP Act
was to prevent the economic
concentration in one common
detriment, curbing unfair trade
practices, and to check
monopolistic activities. On the
other hand, the object of the
Competition Act is to promote and
sustain competition in the market
and to ensure the freedom of trade
and to protect the interest of the
consumer in whole. He explained in
detail the Anti-competitive
Agreement, dominance and its
abuse with the help of case studies.
The applicability of Competition
Law to trade associations,
Competition Compliance
Programme and the role of trade
associations in promoting the
competition compliance were
covered in a presentation by Amit
Tayal, Deputy Director (Law), CCI.
He said, at the level of trade
associations, it is important to bear
in mind that regardless of good
intentions of the trade association
and its members, if the effect of
conduct is to restrict competition,
the activity may be illegal, and
infringement does not require
actual adverse effect on the market,
the mere intention to impede
competition is sufficient.
Infringement can attract penal
liability. Therefore, it is the
responsibility of the association
and its members to ensure
compliance with the law.
The seminar provided the much-
needed one-on-one understanding
of the Competition Law to more
than 35 delegates including
representatives of local trade
associations. n
The object of the
Competition Act is to
promote and sustain
competition in the
market and to ensure
the freedom of trade
and to protect the
interest of the
consumer in whole.
t IN THE STATES
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.
Key macroeconomic indicators
I
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June2012 2012 2012 2012 2012 2012 2013 2012 2013 2013 2013 2013 2013
Index of industrial production (YoY %)
July
Industrial growth as per use-based classification (YoY %)
Growth of core infrastructure industries (YoY %)
Monetary indicators (YoY %)
Inflation (YoY %)
External sector indicators
External sector indicators (YoY %)
Exchange rate and Forex reserves
Industry -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
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
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
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
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
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 2,567Investments ($ mn)
FII ($ mn) 2148 1566 4190 2937 2026 4,882 6,117 4,176 1,246 1,542 6,704 -8,726 -4,703
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
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
48 FICCI Business Digest n n September 2013
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.
Key macroeconomic indicators
I
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June2012 2012 2012 2012 2012 2012 2013 2012 2013 2013 2013 2013 2013
Index of industrial production (YoY %)
July
Industrial growth as per use-based classification (YoY %)
Growth of core infrastructure industries (YoY %)
Monetary indicators (YoY %)
Inflation (YoY %)
External sector indicators
External sector indicators (YoY %)
Exchange rate and Forex reserves
Industry -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
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
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
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
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
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 2,567Investments ($ mn)
FII ($ mn) 2148 1566 4190 2937 2026 4,882 6,117 4,176 1,246 1,542 6,704 -8,726 -4,703
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
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
48 FICCI Business Digest n n September 2013
