Communique Oct 2016

72

Transcript of Communique Oct 2016

P.R. No. DL(S) - 17/3494/2016-2018Regn. No. 34541/79

Edited, printed and published by:Chandrajit Banerjee, Director General, CII, on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi-110003 Tel: 91-11-24629994-7 Fax: 91-11-24626149 Email: [email protected] Website: www.cii.inPrinted at Lustra Print Process Pvt. Ltd., K No. 51/21, Rohad, Bahadurgarh-124507 (Haryana) Registration No. 34541/79 Postal date on 20th and 21st Total pages 68+Covers

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Communiqué October 2016 | 1

Edited, printed and published by Chandrajit Banerjee, Director General, CII, on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi-110003, Tel: 91-11-24629994-7, Fax: 91-11-24626149, Email: [email protected], Website: www.cii.inPrinted at Lustra Print Process Pvt. Ltd., K No. 51/21, Rohad, Bahadurgarh (Haryana), PIN Code-124507 Registration No. 34541/79

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Contents Volume 38 No. 10 October 2016

cover story

11 India: Destination Next

Tourism is one of the fastest-growing sectors globally. As the first-ever Tourism Investment Summit showcased opportunities and projects to investors from all over the world, our cover story presents an overview of the tourism scenario in the country, and recommendations to make it truly welcoming to both investors and visitors.

SPOTLIGHT

04 Swachhta Abhiyaan

05 Mission Sanitation

mIndSPace

20 Meeting India's Growing Needs

fOcuS

33 Tapping Opportunities in Medical Technology

37 Widening and Enhancing the Reach of Health Insurance

POrTfOLIO fOr exceLLence

44 11th Sustainability Summit

47 2nd Water Innovation Summit

PLuS...

pOlICy pERISCOpE

SECTORSCApE

ENGAGING WITH THE WORld

REGIONAl REVIEW

... and mOre

Communiqué October 2016 | 3

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SpOTlIGHT

sanitation

To sustain the efforts of the Government to make India a clean country by 2019, India@75, a CII Initiative is continuing its efforts of augmenting and

promoting the mission for clean India by organizing regular cleaning drives and awareness campaigns pan India.

Swachhta Activitiesduring the annual celebration of the India@75 Week from 8 to 14 August, 75 pan-India Swachhta activities were undertaken in 16 cities across 11 States. These activities were carried out with great zeal, uniting various stakeholders and bringing people from all walks of life together on a single platform to undertake cleaning drives, sapling plantation drives, and aesthetic modification of public walls.

during the Swachhta pakhwada of Ministry of Corporate Affairs, from 16 to 30 June, mass cleaning drives were organized in New delhi, and also in Guwahati and Shillong. Over 2000 volunteers across the country devoted their time and energy to making Swachh Bharat a reality and, in the process, sensitized thousands of

Indians witnessing the event.

The Ministry of youth Affairs & Sports embarked upon a month long Swachhta drive in New delhi in August, culminating in a celebratory event on 1 September. India@75 supported the event wherein more than 500 NSS volunteers took part in a mass Swachh Bharat sensitization and cleaning drive.

Swachh Bharat sensitization drives were organized by India@75 across 22 schools in delhi, Indore and Gwalior on the occasion of Teachers’ day on 5 September, reaching out to more than 16,000 children and their families.

On the occasion of Gandhi Jayanti, on 2 October, India@75 organized a mega cyclothon in Varanasi to sensitize the masses on Swachh Bharat. Simultaneously, a cleaning drive was undertaken in and around Banaras Hindu University. The two activities served the dual purpose of educating people about the virtue of cleanliness, while providing them an immediate cause to engage with, with the very tangible and immediate outcome of maintaining the cleanliness of the holy city of Varanasi.

India@75 is actively

working with various

ministries to augment

their efforts towards the

SwacHHTa abHIyaan

a initiative

Communiqué October 2016 | 5

let’s play a game, said a Himmotthan Society worker in Garhwali,

the native language of Kitth and Kund villages in Tehri Garhwal district, Uttarakhand. He handed out sand in different colors to village leaders, women, and children. Together, they created a map of the village on the ground: white for the houses, pink for the walkways, red to mark houses with no toilets, green to indicate houses that had toilets, and blue for the water sources. Finally, he handed a heap of yellow sand to the village pradhan and asked him to mark all the places where people defecate in the open.

As piles of yellow dust appeared on the map, the Society worker said, “Tell me, where does this end up?” It was then that the village folk realized the impact of waste on their soil, crop and water sources, and the importance of proper sanitation practices. But the analysis didn’t stop there.

The idea of drinking water f rom the i r own village became distasteful as the message of the exercise resonated with them: clearly, potable water is of no use if hygienic sanitation practices are not given a priority.

India houses almost 60% of the global

population that lives without access to toilets and defecates in the open (WHO-UNICEF 2015 Joint Monitoring program). It is estimated that the country will need to build 1542 lakh toilets by 2019 in order to address the nationwide sanitation crisis.

According to a CII and Centre for policy Research report published in 2015, the estimated cost for implementing the Swachh Bharat Mission, both capex (till 2019) and Operation and Maintenance (O&M) expenses for 10 years, is approximately `8.93 lakh crores.

CII and Industry have been actively taking up initiatives to support

the Swachh Bharat Initiative.

In 2014, the CII Foundation (CIIF) launched Mission Sanitation in Schools (SoS) to address the sanitation challenge and support the national agenda of Swachh Bharat. As part of the Miss ion, the Foundation has been undertaking various on-ground

initiatives by engaging companies and communities, both in urban and rural India.

Mission sanitation

cII On-ground Initiatives

• Construction of

4193 toilet blo

cks in Governme

nt schools;

and contributions of approximately `90 crores to the Swachh

Bharat Kosh, by CII members.

• CIIF directly und

ertook construct

ion of 206 toile

t blocks in

schools across 6 States.

• Facilitating cons

tructionof 14 p

ublic communit

y toilets by

engaging with community, industry and Urban local Bodies.

• Community-led

interventionsrea

chingouttomor

ethan11700

people in 15 villages of Jammu & Kashmir and Uttarakhand

• Constructionof

15publictoilets

inandarounds

electrailways

stations across 7 cities

SpOTlIGHT

6 | October 2016 Communiqué

One such CIIF intervention, in partnership with the Himmotthan Society, set up by the Tata Trusts, is the WASH project in Kith and Kund villages in Uttarakhand. The two year project, which began in April 2016 aims to bring potable water and enable 100% sanitation to the water-scarce villages, making them free of open defecation, benefiting around 118 households and 789 individuals.

A similar community-led intervention in 13 villages of Bandipora district of Jammu and Kashmir will set up systems and processes to develop sustainable health practices, reduce disaster risk, and enable WASH facilities, reaching out to over 11,000 people.

The Foundation has also been engaging companies to construct, operate and maintain toilets in various government schools across the country. The first phase of Mission SoS aimed at evangelizing sanitation in school throughmembercompanies;undertakingmanagementof theconstructionandmaintenanceofschool toilets;collating and sharing innovative practices, designs and technology;andconsolidatingandrecognizingmembercompanies’ efforts.

CII facilitated the construction of 4193 toilets through corporate engagement and contributions of approximately `90 crores to the Swachh Bharat Kosh. CII also directly undertook the construction of 206 toilet units through the CII Foundation in Bihar, Chhattisgarh, Tamil Nadu, Rajasthan, delhi and Maharashtra.

Along with the construction and O&M of the toilets, the CII Foundation also provided WASH training to the students and teachers of intervened government schools in Bihar, Chhattisgarh, Maharashtra, and Tamil Nadu. Committee members, comprising of teachers, have been constituted to oversee the day-to-day cleanliness of the toilets.

To meet the open defecation challenges in urban areas, the Foundation launched the second phase of Mission SoS to construct public and community toilets by engaging with community, industry and Urban local Bodies. Five companies, Mitsubishi, dCM, Mahindra & Mahindra, JK Tyres and JCB, joined hands with the CIIF for the construction of 15 public toilet blocks in delhi. The CIIF is also working with the Indian Railways for the construction of 15 public toilets in and around select railways stations, through CSR initiatives, in seven cities: Mumbai, Varanasi, Katra, Amritsar, New delhi, Vijayawada and lucknow.

The major problem though, is not constructing toilets. It is getting people to use them. In remote areas and

‘Congratulations on achieving the 100% target under the Swachh Vidyalaya initiative. I appreciate everyone who has contributed to the success of this socially important initiative.’

Subhash c Khuntia, Secretary, department of School Education & literacy, Ministry of

Human Resource development

‘We are thankful to CII for supporting the Bihar Government’s initiative of building toilets for girls and boys in government schools. We have been periodically inspecting the schools, and have found the toilets to be of good quality and with the capacity to meet the needs over 300 students. These toilets are being maintained well.’

Sudhir Kumar, Sub divisional Officer, Sarv Shiksha Abhiyan, Saharsa, Bihar

‘It has been an exciting and satisfying journey to partner with the CII Foundation in constructing toilets for school students in villages of Bihar, to provide high quality and sustainable sanitation facilities.’

debabrata Guha, Chief Executive, Tata power, Community development Trust

‘We appreciate the support extended by the CII Foundation towards Blue Star’s CSR initiative of school toilet projects.’

Suneel m advani, Vice Chairman, Blue Star limited

‘We never thought the residents of our camp would switch from going out in the open to using community toilets within such a short span. Now, women and girls are safe from the shame and disgust that they used to face in the open every day.’

Ganesh, Community leader, dalit Ekta Camp, a slum in New delhi

(CII Foundation–OdF project)

‘We are really happy that all women are using the community toilets. Today no residents go out in the open. I am grateful to the CII team for making it a reality.’

Johana Khatun, member of a Self Help Group in the dalit Ekta Camp, New delhi

(CII Foundation – OdF project)

– V O I c e S –

SpOTlIGHT

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slums, where people are used to the idea of ‘open air’ for waste disposal, change is not achieved by the simple act of building toilet facilities. According to an all-India survey conducted by the National Sample Survey Office (NSSO), not even half the toilets built under the cleanliness mission are being used. While just 46% of the 95 lakh toilets built in rural India are being used, the figure is barely 50% even in urban areas.

To encourage the use of toilets, the CII Foundation has undertaken various pilot projects to bring about a complete behavior change in communities. The Foundation has initiated a one year sanitation pilot project in South delhi to create and sustain open defecation-free status and improve on solid waste management in two slums. leveraging community participation, the project will also integrate and provide technical support based on the municipal corporation’s plan; build capacity of

garbage producers and collectors; and sensitize urbanlocal bodies and their line departments to improve system efficiency and performance. Another such intervention, being initiated by CII and the CII Foundation, in partnership with the Municipal Corporation of Mumbai, aims to leverage digital technology to engage youth and stir citizen action for behavior change.

CII has urged its members to undertake cleanliness drives as part of the Swacchhta pakhwada, announced by the Government. As part of this, the India@75 Foundation organized a cleaning drive at New delhi and envisages to take this campaign pan-India.

CII is also catalyzing a coalition of private players in sanitation in India, together with the International Toilet Board Coalition, with the goal of catalyzing a robust business sector to deliver universal access to sanitation.

Urban Waste ManagementCII has set up a National Task Force on Waste to Worth, which is coming out with a specific plan to develop workable ppp models for waste management projects, as part of the Swachh Bharat Mission, to encourage and facilitate private sector investments in 10 cities by 2019. It is proposed to achieve this through consultations with stakeholders; policy advocacy with the Government at the Center, and in the States,and facilitating engagements between potential investors, global technology providers, State Governments and municipal corporations.

In this regard, a conference on ‘ppp projects in Urban Waste Management’ was held on 19 September in New delhi, to facilitate the development of a framework for ppp projects on municipal solid waste (MSW), and to explore developing techno-business partnerships between stakeholders for setting up 10 city projects as a pilot phase. Each city project will cover the total quantity of MSW generated in the whole city / town and will have all the components of MSW management – collection, storage, segregation, t ranspor t a t ion , p rocess ing /treatment, and sanitary landfill of the inert matter. On successful demonstration of these pilot city-projects, the models will be scaled-up and replicated in other cities in India.

dr Bindu dey, Secretary, Technology development Board, Government of India, delivered the inaugural address during the conference. Besides leaders from Industry, the conference was also attended by delegations from China and France.

Ajay S Shriram, Past President, CII, Chairman, CII Task Force on Waste to Worth, and Chairman & Senior Managing Director, DCM Shriram Ltd; Dr Bindu Dey, Secretary, Technology Development Board, Government of India; Mahesh Babu, MD, IL&FS Environmental Infrastructure & Services Ltd, and Shailesh Joshi, India - Executive

Director & Head - Energy Consulting Services, Feedback Infra Pvt Ltd, at the conference on Urban Waste Management in New Delhi

SpOTlIGHT

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COVER STORy

tourism

India: Destination NextTourism is one of the fastest-growing sectors globally. For India,

with its myriad attractions, natural beauty and vibrant culture,

the sector can be a force multiplier for inclusive growth and

new jobs. As the first-ever Tourism Investment Summit showcased

opportunities and projects to investors from all over the world,

our cover story presents an overview of the tourism scenario in

the country, and recommendations to make it truly

welcoming to both investors and visitors.

12 | October 2016 Communiqué

driven by globalization, rising incomes and cheaper transport, tourism has emerged globally as one of the fastest-growing sectors. A service industry with high impact on employment, export earnings,

and regional development, it is a key engine of growth. For India, with its myriad places of interest, natural beauty and vibrant culture, the sector can be a force multiplier for growth and new jobs.

As a global export, tourism is the third largest sector, raking in $1.5 trillion from 1.2 billion international travelers in 2015, according to the United Nations World Tourism Organization (UNWTO). The report also places employment in the sector at one in eleven globally, and its contribution to Gdp at 10%, including direct, indirect and induced impact. It forecasts that tourism will grow at an average annual rate of 3.3% up to 2030, with emerging economies expected to attract 1 billion tourists, or 57% of the total, by then.

It is important for India to capture a larger share of international tourists. Currently, the country receives just about 8 million visitors from abroad, and does not figure in the top ten Asian destinations named in the UNWTO report. However, India’s foreign exchange earnings from tourism, at $21 billion, are among the highest in the region.

In addition, 1.3 billion Indians travel in the country each year for different purposes, including social visits, pilgrimage, and leisure. The contribution of tourism to India’s Gdp was about $125 billion in 2014.

India has a diverse portfolio of niche tourism products: heritage and culture, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism. We have 35 heritage sites, including 27 cultural properties, 25 bio-geographical zones, a distinct landscape, diverse heritage and vibrant culture.There is immense scope to enhance the bouquet: tourists are now seeking specialized medical treatments in India including ayurvedic, spa and wellness therapies, Indian art, culture, handloom, heritage and crafts are abundant in rural locations, our sanctuaries and national parks, already strong attractions globally, can be developed further...

To offer the best tourism experience to overseas and domestic travelers, we need to take a holistic approach to the sector. Infrastructure lacunae in terms of connectivity, hotel rooms, entertainment facilities and local transportation must be eliminated through defined projects. There is a need to ramp up skills, including language and soft skills, of service personnel such as drivers, guides, and hotel and restaurant workers.Upgradation of technology is imperative in the current ecosystem of travel portals and hospitality websites that empower the consumer to customize and book travel itineraries online.

In fact, tourism infrastructure development presents a plethora of investment opportunities.The sector is open to Foreign direct Investment (FdI) of 100% under the automatic route for hotels and other facilities. India was the fourth largest recipient of FdI in the sector in terms of projects between April 2010 and May 2016, receiving $4.3 billion for 109 projects, according to the Financial Times.

The Government has taken several initiatives to develop quality tourism across the country. Two schemes have been launched for the upgradation of tourist facilities, Swadesh darshan in 12 tourist circuits, and pRASAd, for pilgrimage destinations. The States have been given greater flexibility in the development of tourist infrastructure as per local requirements from their enhanced resources. Services provided by Indian tour operators to foreign tourists for tours wholly conducted outside India are exempt from service tax. The visa-on-arrival facility has been increased for travelers from 150 countries, eliciting enthusiastic response.

Incentives are also being provided for setting up projects in special areas, the North-East, Jammu & Kashmir, Himachal pradesh and Uttarakhand. The Ministry of Tourism has promised assistance in large revenue-generating projects and announced a five–year tax holiday for hotels located near UNESCO World Heritage Sites, amongst other encouraging measures.

With the necessary streamlining of infrastructure and core hospitality sectors through investments, and a coming together of the public and private sectors, India can become one of the most sought-after destinations in the world.

Indian Tourism: Opening The doors

COVER STORy

Communiqué October 2016 | 13

Incredible India Tourism Investors’ Summit 2016

Arun Jaitley, Minister of Finance, and of Corporate Affairs, inaugurating the Incredible India Tourism Investors’ Summit in New Delhi, with (L-R); Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall; N Chandrababu Naidu, Chief Minister of Andhra Pradesh; Ashok Gajapathi Raju Pusapati, Minister of Civil Aviation, and Dr Mahesh Sharma,

Minister of State (Independent Charge) of Tourism and Culture

COVER STORy

India offers an immense variety of cultural and natural experiences and vast diversity across its length and breadth, in terms of architecture and heritage,

food and entertainment, and the beauties of nature. To leverage these tourism destinations, contribute to India’s growth and create new employment opportunities, and provide a pleasant India experience to visitors, the Government is keen to target and strengthen tourism infrastructure facilities and to start a robust pipeline of investments from best-in-class experts and investors. Over the last two years, FdI has been high on the policy radar, and the Government has taken initiatives across a range of issues to facilitate investments.

The first-ever Investor Summit in Tourism, the Incredible India Tourism Investors’ Summit (IITIS) 2016, was organized by the Ministry of Tourism along with the Tourism Finance Corporation of India (TFCI) ltd and CII, to showcase to investors the immense opportunities offered by the sector. The Summit held from 21 to 23 September in New delhi was a platform, wherein, for the first time, 29 States and Union Territories were present with their ready bouquets of tourism projects from sectors like infrastructure, civic amenities, MICE, amusement parks, and more.

The Summit was inaugurated by Mr Arun Jaitley, Minister of Finance, and of Corporate Affairs. Mr Jaitley also released a publication compiling tourism policies and a complete list of all investment-ready projects of most States and Union Territories. Mr Chandrababu Naidu, Chief Minister of Andhra pradesh, was the Chief Guest and delivered the keynote address. Other key speakers were Mr Suresh prabhu, Minister of Railways, Mr Ashok Gajapati Raju, Minister of Civil Aviation, and dr Mahesh Sharma, Minister of State (Independent Charge) of Tourism and Culture.

Col Rajyavardhan Singh Rathore, Minister of State of Information and Broadcasting, Mr pK Sinha, Cabinet Secretary, Mr Amitabh Kant, CEO, NITI Aayog, Mr Ramesh Abhishek, Secretary, department of Industrial policy and promotion (dIpp), Mr Vinod Zutshi, Secretary, Ministry of Tourism, and Mr Sanjay Mitra, Secretary, Road Transport and Highways, also participated in the Summit.

The event assisted all the stakeholders in building partnerships through B2B and B2G linkages, while facilitating local players to identify ways to move up the value chain through technical collaborations and global partnerships. The main objective was to catalyze

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Communiqué October 2016 | 15

COVER STORy

‘India must build tourist infrastructure, preserve and market monuments, and develop moderately-priced hotels. The shortage of connectivity has been addressed with 70 functional airports, and 30-35 more airports are to be added for regional connectivity. India also has the fastest-growing highway network, while the railways

are focusing on quality, faster trains and station redevelopment. The tourism industry should develop the right business models. As India’s position in the global economy improves, tourism too will benefit.’

arun Jaitley, Minister of Finance, and of Corporate Affairs

‘The Tourism sector, being an integral part of the services-led economy, will help meet the national economic goals of the country. Considering of the holistic approach offered by the sector vis-à-vis employment generation and revenue generation, we are committed to assist the Tourism Ministry in unveiling the future potential of India.’

Suresh Prabhu, Minister of Railways

‘The National Civil Aviation policy entails an integrated approach to address the problem of air connectivity across the country apropos the respective regions and States. Furthermore, 100% FdI under the automatic route to attract Greenfield and Brownfield investment in airports would help meet the key objectives of the policy.’

ashok Gajapati raju, Minister of Civil Aviation

‘The tourism industry creates the highest employment, direct and indirect, and has emerged as a priority sector for the country. India has all the advantages;we need tocreate the right ecosystem and market the product. Andhra pradesh achieved almost 11% growth rate the previous year, with the target to touch 14-15% in the current year. The

State is stressing on creating the right ecosystem to make tourism a growth driver.’

n chandrababu naidu, Chief Minister of Andhra pradesh

investment in tourism infrastructure.

Around 3000 delegates attended the three-day Summit, which presented about 700 investible projects to 250 investors from 16 countries, including Germany, Oman, Qatar, Singapore, US, Thailand, Italy, Bahrain, Kenya and Malaysia, as well as from India.

Some of the key initiatives proposed at the Summit include:

• Institutionalization of IITIS asan annual event, with the next Summit to be organized in September 2017

• Settingupofataskforceheadedby the Secretary, Tourism, with membership from relevant ministries, State Governments, and industry associations to undertake strategic planning

• Settingupaninvestorfacilitationdesk to handhold investors and facilitate projects

• OrganizinginvestormeetsintheStates with the support of the Ministry of Tourism.

State Participation

Besides 16 special State Sessions, the event also featured an exhibition where the State Governments showcased their offerings to investors.

The States participating in IITIS 2016 exchanged 86 MoUs, aggregating close to `15, 000 crores. Key among these were Gujarat, `9000 crores, Karnataka, `2600 crores, Rajasthan, `1000 crores, and Uttarakhand, `500 crores.

The Ministers of Tourism and Culture from a number of States, including Uttarakhand, Madhya pradesh, Gujarat, Assam, punjab, Chhattisgarh, delhi, West Bengal, and Telangana, attended the Summit.

byTeS

16 | October 2016 Communiqué

COVER STORy

‘Tourism has been identified as a priority sector by the prime Minister. The target is to raise the share of India in aggregate tourist arrivals to 1% by 2020 and to 2% by 2025. The Incredible India Tourism Investors’ Summit will help take forward the synergy created by the ‘Make in India’ initiative. Our biggest strengths, our hospitality and our diverse heritage and culture, will emerge as the key tools

in raising the tourism bar of the nation, along with our share in world tourism. The Ministry has introduced a multi-lingual helpline in 12 languages for tourists, a first-of-its-kind in the world. This is the right time to invest in the tourism sector in India, while leveraging the ease of doing business in the country.’

dr mahesh Sharma, Minister of State (Independent Charge) of Tourism and Culture

‘Films and advertisements can play a key role in packaging India’s large bouquet of tourism offerings. Towards promoting single window for all clearances and approvals, we have set up the film facilitation office, making filming in India easy. In my opinion, this should be replicated in the States. The ministry has also instituted the ‘Most Film-friendly State’ award to promote film shooting in India.’

col rajyavardhan rathore, Minister of State of Information & Broadcasting

‘India is an oasis for growth. It is today one of the most open economies. Considering the presence of ease of doing business in the current scenario, the Indian tourism sector has immense potential. Besides, there is a huge movement of people from rural to urban areas, which will facilitate tourism. Technology will play a growth-conducive role.’

amitabh Kant, CEO, NITI Aayog

‘India has huge requirements for infrastructure, including in sanitation and tourism infrastructure. The time is ripe for private sector investment.’

PK Sinha, Cabinet Secretary

‘Tourism is expected to touch revenues of $419 billion by 2022, and has immense potential to create jobs and drive growth. There is no better time to invest in Indian tourism. The economy is growing at a steady pace; there is ease of doing business, a huge consumermarket, de-regulation of laws, andgrowth in tourist infrastructure. The bridging of the existing demand-supply gaps will be looked at now, starting from the platform created by IITIS 2016.’

Vinod Zutshi, Secretary, Ministry of Tourism

‘Industry and Government need to synergize to ensure incremental tourist arrivals in India. This may be achieved by adopting a holistic approach in terms of changing perceptions through campaigns, word of mouth, and changing the reality of the tourist experience. Concentrated efforts in enhancing connectivity, entertainment and other related factors that come under the umbrella of tourism will help in making tourism a sunrise industry.’

dr naushad forbes, president, CII, and Co-Chairman, Forbes Marshall

‘Tourism, in the past, has been a fatality of a divided industry. However, in the prevailing scenario, like-minded people have come together to form organizations to represent the voice of the sector. We stand united in our commitment to boost tourism in India.’

nakul anand, Executive director, ITC

‘The IITIS has the presence of all stakeholders, to boost the tourism sector of the country.’

chandrajit banerjee, director General, CII

Communiqué October 2016 | 17

COVER STORy

Glimpses of IITIS 2016

18 | October 2016 Communiqué

COVER STORy

meGa TOurISm ZOneS

India requires integrated world-class scale tourism destinations on the lines of disneyland, Sentosa Island, Messe

Berline Convention Centre, Sochi (Winter Olympics destination) etc. To facilitate this, a policy for the creation of Mega Tourism Zones (MTZ) on the lines of Special Economic Zones (SEZ) and National Investment and Manufacturing Zones (NIMZ) needs to be implemented. This will provide a big bang stimulus through capital investment, infrastructure creation, large scale employment, and forex earnings.

meeTInGS, IncenTIVeS, cOnferenceS and exHIbITIOnS (mIce) TOurISm

It is essential to allocate a budget to be operated by the Ministry of Tourism for bidding for world-scale technical and scientific conventions, conferences and exhibitions, to be conducted by the private sector. India currently has a negligible share in the world's meetings and conventions market. Global conventions create tremendous intellectual goodwill across different industries and in the countries where they are held. India has some of the most intellectual and inventive minds in the world. It is suggested that a corpus be set aside for enabling the private sector to proactively bid for knowledge-rich global meetings and conventions to come to Indian shores. This corpus can be disbursed through the Ministry of Tourism.

ruraL TOurISm

For the high growth of rural tourism, it is essential to provide a 10-year income tax holiday for heritage and other hotels,

and adventure tour operators operating in rural areas.

India is a land of enviable heritage assets. As per the 2013 tourism competitiveness survey (undertaken by the World Economic Forum), India was ranked a high of 21 globally on

the strength of its natural, cultural and heritage assets. However this was offset by an extremely low ranking of 110 on the Governmental prioritization of tourism as an economic activity.

Heritage hotels, rural tourism units and adventure tourism activities located in rural areas can generate employment and deepen the technical skills of the local population. Almost 100% of the employment for heritage properties and adventure tourism activity is estimated to be from local areas. Additionally heritage hotels help restore our national heritage and connect mainland India to the hinterland. It is roughly estimated that less than 10% of India's heritage across the length and breadth of the country is being gainfully leveraged for tourism. providing a 10-year income tax holiday for heritage rural tourism units and adventure tour operators operating in rural areas will rejuvenate economic development and create local area jobs for different skills.

TOurISm InfraSTrucTure

There is a strong reason to classify hotels and resorts as an infrastructure sector.

Hospitality infrastructure is critical for the growth of the tourism sector and the Indian economy. It will stimulate foreign exchange, direct and indirect employment, and raise tax revenues both at the Central and State Government level.

India has a minuscule share of the estimated 12.5 million hotel rooms worldwide. We get less than 8 million international tourists annually. Compare this to India's biggest competitor in tourism, China, which has an estimated 2.5 million rooms, and over 55 million international tourists arrivals annually.

To capture an increasing size of the world market, the Chinese Government is targeting an increase in their hotel capacity by three times to 7 million hotel rooms through central and provincial government subsidies support and low cost interest.

cII recommendations for the Tourism Sector

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Communiqué October 2016 | 19

adVenTure TOurISm

It is necessary to incentivize adventure tourism activities in India by extending 100% exemption on import duties on

adventure tourism equipment and accessories. India has enviable natural resources: over 7000 km of coastline, 73% of the Himalayas across 10 States, 0.2 million sq feet of desert cover, 4000 km of Sunderbans mangrove forests, around 175 rivers which have a runoff of 1900 km of volume, thousands of ancient caves, hundreds of waterfalls, and 150 million acres of forest cover. yet, India has been unable to convert these assets into competitive economic advantages. Exemption of import duties on adventure tourism equipment would make it cost-competitive for Indian companies to access this equipment and provide global standards of quality.

InfraSTrucTure STaTuS TO HOTeL InduSTry

The country currently faces a shortage of over 1,92,000 hotel rooms to meet the

accommodation needs of foreign and domestic tourists. Hotel building is highly capital intensive, with a long gestation period. declaring the hotel industry as an infrastructure industry under Section 80IA of the Income Tax Act 1961 would enable it to avail the benefits available to other sectors of infrastructure, such as airports, seaports, power projects, etc.

cOrPOraTe SOcIaL reSPOnSIbILITy

To promote art and cultural awareness, the promotion of artists of India, awareness creation towards sanitation,

and cleanliness efforts, should also be a part of Corporate Social Responsibility (CSR) funds. Currently CSR guidelines do not cover the promotion of art.

GST GuIdeLIneS

Goods and Services Tax (GST) for Tourism, Travel and Hospitality should be kept in the lower bracket.

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COVER STORy

20 | October 2016 Communiqué

The Government of India has set for itself the ambitious target of ‘doubling Farm Incomes by 2022.’ Seven key drivers have been identified

towards attaining this objective:

1. Focus on irrigation with the aim of ‘per drop, more crop’

2. provision of quality seeds and nutrients based on soil health

3. post-harvest infrastructure development to prevent losses, through large investments in warehousing and cold chains

4. promotion of value-addition through food processing

5. Creation of a national farm market for better price realization for farmers

6. New crop insurance scheme to mitigate risks at affordable cost

7. promotion of ancillary activities like poultry, beekeeping and fisheries to generate added incomes for farmers.

The CII National Council on Agriculture, comprising of leading industry players, has been working through a multi-stakeholder approach to ensure innovation and technology to drive the sector towards higher productivity and efficiency. Aligned with the Government’s target of ‘doubling Farm Incomes by 2022,' the focus is on resolving policy issues in consultation with the Government and policy-makers, upgrading the technology quotient in agriculture, imparting specific skill sets to the farming community, and building long term sustainability of the agriculture ecosystem.

Accordingly, the agenda of the Council for 2016-17 is structured along the following components:

I. ease of doing business

The Government has taken a series of progressive policy measures to improve the agribusiness climate, some of which include

• Significantoutlaysforruralinfrastructure,especially

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food & agriculture

Meeting India's Growing Needs

towards Food security

CII is working through a multi-stakeholder approach to infuse innovation and technology towards higher productivity and efficiency in the core food and agriculture sector. With a good monsoon after two years of drought, our second lead feature examines policies and measures for the long term sustainablity of the entire agriculture ecosystem in India.

Communiqué October 2016 | 21

CII and the High Commission of India in the United Kingdom (UK), organized an interaction with Ms Harsimrat Kaur Badal, Minister of

Food processing Industries, on ‘Food processing in India: Collaborative Opportunities,’ bringing together nearly 20 renowned UK-based companies in the food sector, on 6 September in london. The participants included senior representatives from Sainsbury, Holland & Barret, diageo, Ty-phoo Tea, British Agri Food Consortium, Food and drink Federation, Whittard of Chelsea, and Food and drink Exporters Association, among others.

Reiterating the need for enhanced cooperation between India and the UK in the sector, Ms Harsimrat Kaur Badal said increasing disposable incomes and changing consumer preferences, booming retail and e-commerce, have created myriad opportunities in the food segment. Alongside, the Government of India has taken a number of policy decisions to spur vibrant growth in the food processing segment. With such a progressive policy outlook, we offer full support towards new collaborations and greater investment, she said.

Mr Navtej Sarna, High Commissioner of India to the UK, said the UK is the 3rd largest investor in India. Of the total UK FdI in India, around $3 billion is in the food processing sector. Closer interaction between the food and beverage sectors of both countries would strengthen the relationship and business, he added.

Mr piruz Khambatta, Co-Chairman, CII National Committee on Food processing Industries, and CMd, Rasna pvt ltd, said the Government’s decision to permit 100% FdI under the Government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India, will provide a major impetus to investments, employment and job creation. The policy is aligned with the Government’s ‘Make in India’ initiative, he added.

Ms Harsimrat Kaur Badal, during her three-day official visit to the UK for inviting investment and exploring opportunities for collaboration between Indian and UK companies in food processing, food technology and retail industries, interacted with top food companies in the UK, apprising them of the huge business potential in India’s food processing sector. The Minister was accompanied by Mr Jp Meena, Special Secretary, Ministry of Food processing Industries.

on irrigation, with plans to make Indian agriculture less dependent on the monsoons

• The onl ine nationale-marketplace for farmers, a technology-dr iven initiative, aims to make the marketing of agri produce in the country more efficient. The pre-condition of bringing in reforms in the ApMC Act is noteworthy.

• Piloting direct benefittransfers of fertilizers subsidy to improve targeting of beneficiaries, while reducing subsidy leakages.

• Emphas is on Foodprocessing under the ‘Make in India’ initiative will leverage on the strong agricultural base in the country.

Fu r t h e r, t h e C e n t r a l Government's innovative exercise to rank the States on the basis of ‘Ease of doing Business’ is bound to generate competition among the States in the agr iculture space too, and help investors make informed choices.

Given the right focus the ease of doing business is set to improve. However, there are a few more issues which need streamlining.

CII’s initiatives are aimed t o w a r d s c r e a t i n g a fac i l i t a t ing ecosystem for the growth of agri business by dealing with the complexities around procedures and approvals, and the various controls impacting growth.

Navtej Sarna, High Commissioner of India in the UK, Harsimrat Kaur Badal, Minister of Food Processing Industries; JP Meena, Special Secretary, Ministry of Food Processing Industries, and

Piruz Khambatta, Co-Chairman, CII National Committee on Food Processing Industries, and CMD, Rasna Pvt Ltd, at an interactive session on ‘Food Processing Opportunities’ in London

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India and UK collaboration for food processing & food retail

22 | October 2016 Communiqué

II. Innovation and Technical capabilities

Agriculture in India is a $370 billlion sector, but there is little application of technology to improve productivity and support the overall development of farming operations. Advances in technology and innovation are the key to enable the sector to meet India’s growing food security needs, given rising input costs, declining returns from inputs, shrinking land resources, and inadequate market linkages. The focus on sustainable agricultural practices calls for early adoption of technology and innovation to boost productivity per unit of land and water, save on cost of production, and improve net return to the farmers.

Technology has played an important role in the evolution of Indian agriculture and continues to be critical given the pressure to grow more - smartly and in a sustainable manner. From farm mechanization to adoption of ICT and next generation technologies – drones, robotics, precision technologies, IoT, among others, Indian agriculture is a large market. The future vision of agriculture in India, driven by digitization and innovation, would require a seamless integration and partnership among different industries, stakeholders and countries.

CII’s Working Group on Innovation is working with the Food and Agriculture Centre of Excellence to institutionalize a program on agriculture technology and entrepreneurship. The program includes a virtual platform NAVI (Network of Agri Start ups, venture financiers and Incubators), launched earlier this year. Building on this, for the first time, at the Agro Tech Exhibition pavilion, agri start-ups will have an opportunity to showcase their technology accompanied by a session wherein entrepreneurs will present projects to mobilize funding and secure potential incubation opportunities. leveraging the presence of experts from the agribusiness sector, investors, academia and policymakers, interactive sessions on rapid prototyping, business plan writing and, one-on-one interactions will be organized for start-ups, to help them access useful information, establish contacts and network effectively. In an effort to engage youth and young talent, FACE is running an Agri Hackathon, inviting students from across universities and institutions working on agri technology to problem solve issues, such as crop health, soil, health, information access, and agri marketing amongst others. Several agri -universities from across the country, and institutions including IITs and IIMs will participate at this platform, which will also see a Global dialogue on digital pathways in Indian Agriculture.

III. Human development

Although the Indian economy has experienced rapid

growth in recent times, the low levels of education, and lack of formal training of the workforce, are a matter of concern.

The agriculture sector, which employs more than 50% of the working population, has a majority of employed individuals working as cultivators or agricultural labor. The necessity of skilling in this sector is highlighted from the fact that agriculture’s share of Gdp contribution is a low 14%, despite engaging a large portion of the working population. There is disguised unemployment – a large number of people seem to be employed, but their marginal productivity is zero. Compared to developed countries, where the percentage of skilled workforce is between 60% and 90% of the total workforce, India records a low 5% of workforce (20-24 years) with formal vocational skills. There is a dire need for generating employment opportunities through skilling across job functions in the agriculture sector.

CII is working to identify key skill development activities in the domain of farm equipment, farm inputs, and dealership training, fixing a target number of beneficiaries in a year.

IV. Sustainability

Agriculture today needs to respond not only to longstanding issues and challenges, but also to newer challenges put forth by degradation and growing competition for natural resources, such as land and water. Further, climate change is affecting Indian agriculture in a big way. Making Indian agriculture climate resilient by embedding various adaptation measures is clearly the need of the hour.

The solution lies in shifting towards non-renewable energy resources, balanced use of organic crops and high yield varieties of seeds, promoting balanced use of inputs, etc. This envisages promotion through an effective communication strategy to help the farmer understand the need for judicious use of inputs.

With the focus on integrating environmental health, economic viability, and social equity to ensure long-term productivity of natural resources and improved livelihoods, the CII National Council on Agriculture is organizing a conference on ‘Making Indian Agriculture Sustainable’ on 21 November in Chandigarh. The conference will also focus on complex problems like climate change and water scarcity, and include an assessment of the impact of flagship schemes of the Government, such as the Soil Health Card scheme, pradhan Mantri Gram Sinchai yojna, paramparagat Krishi Vikas yojna, among others.

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With India set to become the fastest-growing global economy, the size of the Food processing industry will treble in the coming

years, said Ms Harsimrat Kaur Badal, Union Minister of Food processing Industries, at the conference on ‘FdI in the Marketing of Food products and promotion of Exports’ in New delhi on 13 September. “Retailers, processors and manufacturers will be the three key drivers for the growth story of the Indian food industry,” she added.

The Minister said the Indian food market is ready for innovative products, processes and investments. The Ministry is facilitating the ‘ease of doing business’ and is creating investor-friendly policies and schemes that are drawing positive interest from investors, she said. Taking forward the agenda, the World Food Summit in 2017 would be a single consolidated platform for investors, technology solution providers, processors, manufacturers and all other relevant national and international stakeholders, she added.

Mr Avinash K Srivastava, Secretary, Ministry of Food processing Industries, said the Ministry is aiming for a five-fold increase in the Gross Value Addition (GVA) of the food processing industry to the GVA of agriculture, which would also call for a higher allocation of financial resources. He urged businesses to look at ethical sourcing while developing supplier chains.

Food processing has been included as one of the 10 key sectors under the ‘Make in India’ initiative, as it presents attractive capital and technology investment opportunities to both domestic and foreign investors, leveraging on India's strong food production base, said Mr Ramesh

Abhishek, Secretary, department of Industrial policy and promotion (dIpp). Conducive Government policies are expected to provide a major impetus to investments, employment and job creation in the sector, he added.

Mr Rakesh Bharti Mittal, Vice president, CII, and Vice Chairman, Bharti Enterprises, said the opening up of FdI in the marketing of food products would facilitate seamless integration of the supply chain, and help farmers reach the huge market that retail offers. It would also improve price realization for the farmers by reducing intermediaries, and strengthen the supply chain through forward and backward linkages, while reducing wastage of perishables, he added.

Mr piruz Khambatta, Co-Chairman, CII National Committee on Food processing Industries, and CMd, Rasna pvt ltd, welcomed the favorable policies and out-reach efforts to draw global food and retail giants to the Indian food market.

Mr Krish Iyer, president & CEO, Walmart India, suggested that the policy of FdI in the marketing of food products could also include a certain component of non-food items, as part of the overall product portfolio of the retailers.

CII is aligned with the Government’s ‘Make in India’ initiative and would hand-hold the Indian food processing industry to leverage the policies of the Government, said Mr Chandrajit Banerjee, director General, CII.

Besides industry stalwarts from leading organizations, representatives from foreign embassies and missions of Netherlands, Germany, New Zealand, Mexico, and Colombia, among others, were also present at the conference.

B Thiagarajan, Chairman, CII National Committee on State Level Coordination – Agriculture & Food Processing, and Joint MD, Blue Star Ltd; Avinash K Srivastava, Secretary, Ministry of Food Processing Industries; Rakesh Bharti Mittal, Vice President, CII, and Vice Chairman, Bharti Enterprises; Harsimrat Kaur Badal, Minister of Food Processing Industries; Ramesh Abhishek, Secretary, DIPP; Chandrajit Banerjee, Director

General, CII; Piruz Khambatta, Co-Chairman, CII National Committee on Food Processing Industries, and CMD, Rasna Pvt Ltd; and Krish Iyer, President & CEO, Walmart India, at the conference on ‘FDI in Marketing of Food Products and Promotion of Exports’ in New Delhi

‘Food Processing Industry to treble’

24 | October 2016 Communiqué

The CII National Committee on Food processing Industries is working with a focused agenda to catalyze investments in needed infrastructure,

create an enabling environment for innovation, and strengthen farmer-industry linkages, to help reduce post-harvest losses and increase farmer incomes, building the India Brand in this sector. In addition to the National Committee, CII has State-level panels focused on agriculture and food processing, to enable strong implementation capability.

In order to facilitate and exploit the growth potential of the sector, the Government has initiated extensive reforms. Allowing 100% FdI through the FIpB route in marketing of food products produced and manufactured in India is a path-breaking initiative that has opened up vast opportunities for international companies to invest in India in the entire food processing supply and marketing chain.

CII is deeply conscious of the need for promoting FdI in the food sector, and is constantly engaged with the Central and State Governments, overseas partners, and industry, to attract more investors in the food space.

In the recent past, CII has supported the Ministry of Food processing Industries in reaching out to several countries, including the UAE, the UK, and France, to promote India as an attractive investment destination, and to explore opportunities for collaboration with international companies in food processing, food technology and retail industries.

At the State level, CII is working with State Governments to develop export strategies, and promote FdI. There is a need to improve transport connectivity and storage facilities with rapid evacuation to ports, requiring a systems approach to developing hinterland export connectivity.

Focussed effort is required in the branding and export

promotion of Indian food products. It is suggested that the Indian food processing industry be encouraged to participate in food exhibitions in key markets, and in food festivals and food events in targeted spaces such as overseas speciality food stores, general supermarkets, hotels, etc.

Indian Industry would need to be more conscious of food safety and quality norms in order to meet the requirements of export markets. CII is working with the Food Safety and Standards Authority of India (FSSAI) on inculcating standards in the food industry, as also on legal metrology and packaged commodities. We request the Government to work on mutual recognition agreements of certifications in free trade agreements to expand the acceptability of our labs and testing facilities. Additionally, more labs and testing facilities are required across the country to lower costs for exporters for obtaining certification.

Research & development for developing new food products is also essential. Safe, nutritious, and tasty processed foods will attract more consumers, and this can be facilitated by FdI in the food processing sector.

Key recommendations of the CII National Committee on Food processing Industries:

• Establish a Special Purpose Vehicle (fund) in thepublic private partnership mode to facilitate the branding of value-added Indian food products overseas, through activities such as roadshows, marketing campaigns, participation in exhibitions, etc.

• Increase duty credit scripts on agricultural exportsfrom 5% to 7%. This would be an encouraging step for the industry because exports of processed food products would result in value addition in the

catalyzing the Food Processing sector

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agriculture sector and lead to inclusive growth in rural India.

• ModelagropoliciesbasedonsuccessfulmodelsinStatessuch as Gujarat, Karnataka, Rajasthan, punjab, etc can be replicated across the country.

• On the lines of weighted deduction for R&D, it issuggested to provide a 200% weighted deduction for the expenditure on marketing and brand promotion of value-added Indian food products overseas, under Section 35 of the Income Tax Act.

Goods and Service Tax (GST)

The CII National Committee on Food processing Industries has welcomed the Government’s decision to implement GST. The food manufacturing sector is expected to be a big beneficiary of GST, as the economic system would become more competitive and the supply chain faster, seamless and more efficient, allowing for uninterrupted movement of goods across the country.

Value addition in the food processing sector is a catalyst for the agricultural sector, thus leading to inclusive growth. It is therefore important to keep food products at the lowest tax slab, in line with current CENVAT and VAT rates. The rationale for this argument is based upon international practices for controlling inflation, reducing wastage of perishable food products, and agriculture growth being catalyzed by growth in food processing.

Hence, it is suggested that,

• AllitemscurrentlyexemptedunderCENVATandexemptedfrom VAT should be exempted from GST, both Central and State

• Do not tax value addition and processing of perishables. processed products should be encouraged and be kept at par with fresh produce, and should be without GST, both Central and State. This includes milk products, fruit and vegetables products, poultry products, etc.

• At present, all merit list items under CENVAT andVATshould be kept at a special lower threshold of GST, at least half of the revenue neutral rate

• All food products packed in unit containers belowMRP`10/- should be exempted from tax, both Central and State, as they are for the poor

• All food products for the common man packed in units with MRp below `20/- should be kept at very low GST.

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The Indian food industry is expected to reach $78 billion by 2018. Growing at an annual growth rate of around 9.7%, the sector employs around

13.04% of the work force. Given that only 10% of the country's food produce is currently being processed, the opportunity offered by the sector is tremendous. Further, the Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. With rapidly-changing demand preferences driven by changing lifestyle patterns and rising income levels, the demand for processed commodities will increase exponentially.

The Food processing sector has been selected as one of the target sectors under the 'Make in India' campaign, with the focus on elevating the agricultural economy and creating large-scale value addition through zero defect food manufacturing with world class food chain facilities. Towards realizing the true potential of the food processing sector, several reforms have been initiated by the Ministry of Food processing Industries.

• The recent decision of the Government to permit100% Foreign direct Investment (FdI) under the Government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India is one such policy initiative that will provide a major impetus to investments, employment and job creation in the food processing industry. This policy announcement is aligned with the objective of the Government’s initiative on ’Make in India’ to facilitate the ‘ease of doing business’ with a thrust on ‘Minimum Government and Maximum Governance’. The industry is hopeful that, with easier FdI, investments as well as technology for integration of backward linkages, will see massive progress.

• AnothermajorachievementoftheMinistrytowardstransforming the food economy through food processing has been the creation of huge 32 lakh MT capacity worth `9000 crores within 2014 to 2016, which is expected to reduce wastage by 10% per annum i.e. `9200 crores every year. This is a major step for India to move towards zero tolerance of food wastage.

• Other key initiatives include the creation ofinfrastructure for cold chains, value addition and preservation. Over the last two years, 44 cold chain projects have been operationalized, 30 new cold chain projects have been sanctioned, and 53 cold chain projects are in progress. Of the 37 mega food parks in implementation, 6 have been operationalized and 14 new mega food parks have been sanctioned. A Special Fund of `2000 crores has been set up in NABARd to make available affordable credit to agro processing units in the designated food parks.

• Towards improving the ease of doing business,the Government has launched an online system to file claims under flagship schemes like mega food parks and cold chains. The objective is to remove human interface and improve transparency in the regulatory processes. The Ministry has also simplified procedures and created a grievance redressal mechanism, which is a welcome initiative.

In addition to increasing processing capacity, food safety and quality have also been recognized as essential components for the growth of the food sector. The Food Safety and Standards Authority of India (FSSAI), is a statutory regulatory authority of the Government of India, with the mandate to ensure availability of safe and wholesome food for human consumption, including the development of science-based standards. These are necessary to complement the development of food processing industries and facilitate trade.

With the advent of the Foods Safety & Standards Act (2006), Rules and Regulations 2011, India has moved yet another step towards parity with global standards of food safety, quality and regulations. The regulatory ecosystem in India has evolved from ‘checking adulteration’ towards ‘ensuring safety.’ This shift in focus from ‘finished product checks’ to ‘process controls’ guided by codes of practice, is encouraging Industry to move towards self-regulation.

India is currently celebrating 10 years of integrated food law. The Food Authority has taken several initiatives to address issues confronting the food sector and create a conducive regulatory environment while ensuring the

New Policies and Initiatives in the Food Processing ecosystem

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best interests of the consumer. Some recent efforts include

• Harmonization with international standards: An enormous amount of work has been done by the food regulatory set-up in India under the guidance of different wings of the Government for the harmonization of Standards with Codex. Almost 11,000 food additives in 14 food categories have been harmonized with Codex. This will go a long way in creating an enabling environment and developing science-based globally compatible regulations.

In addition, India’s contribution at international standards-setting bodies like Codex has gained momentum. Today, India is the coordinator for the Codex Committee for the Asia region, and is hosting the commodity committee on Spices, indicative of its increasing role in the food regulatory space.

• facilitating Trade: Reforms in import regulations have been brought in to streamline the process of imports in the country, thereby ensuring the inflow of safe food for consumption. Risk-based sampling procedures have been introduced, which will help reduce the current turn- around times at ports.

• building a roadmap towards an integrated approach to food Safety: With the objective of assuring safe and nutrition food for all, the food authority has launched 10 new initiatives to connect people of all age groups for ensuring safe food through an integrated approach, centered around

◘ Assuring safe and nutritious food in homes, schools, workplaces, religious places, trains and railway stations, restaurants, and other places.

◘ Building capacity through training on food safety aspects and strengthening food testing laboratories.

Sustaining this evolution in food laws would require an effective partnership across all stakeholders, including the industry, the regulator and the consumer.

With the right policy focus in place for seamless integration of the supply chain, farmers are expected to benefit in terms of easier access to a larger market. This will offer the advantage of improving price realization for the farmers by reducing intermediaries, and strengthening the supply chain through its forward and backward linkages. Over and above all, it will reduce wastage.

The Indian food processing industry is well-positioned today to catalyze investments in the sector, and to catapult to a high growth trajectory. It will be important to maintain the current momentum to help the Indian food processing sector deliver the objective of creating a ‘brand for India’ and ensuring inclusive growth.

28 | October 2016 Communiqué

India is heading towards a normal South-west monsoon this year, notwithstanding the monsoon deficit of 3% below long period average (lpA) till 28 September. The

India Meteorological department (IMd) categorizes rainfall in the 96-104% long-period average range as normal, and rainfall between 104-110% of lpA as above normal. Much of the rainfall deficit has been seen in the East and North-Eastern parts and the Southern peninsula of the country, which are either predominantly non-agriculture dependent or are well irrigated.

Seasonal Rainfall Scenario (1 June to 28 September 2016)

regionsactual rainfall (mm)

normal rainfall (mm)

% LPa from departure

Country as a whole 853.9 879.6 -3%

Northwest India 581.9 611.9 -5%

Central India 1024.2 968.5 6%

South peninsula 654.2 703.9 -7%

East and North-East India 1265.4 1424.2 -11%

Source: IMD

The importance of a normal monsoon this year is particularly crucial given the high food inflation rates seen currently. In this context, the news of the first advance estimates of total kharif foodgrains estimated at a record high of 135 million tonnes is heartening. This year, the estimated production is higher by 11 million tonnes as compared to last year’s kharif foodgrains production of 124 million tonnes. Further, kharif foodgrains production is also higher by about 8 million tonnes than the last five years’ (2010-11 to 2014-15) average production of 127 million tonnes. Notably, production in pulses (which saw double-digit inflation in the last couple of months) has been estimated at a record level of 8.7 million tonnes, which is higher by 3.2 million tonnes than last year’s production.

Kharif sowing starts in June, and the crop is harvested during September-October. The area sown under kharif crops had increased to 1067.53 lakh hectares by 23 September, 3.6% higher than the area sown at this time last year.

Much of the food inflation last year was driven by pulses. Encouragingly, pulses have recorded the largest increase in area sown to the tune of 29.1% this year so far. As on 23 September, the area under pulses measured 145.84 lakh hectares as compared to 112.93 lakh hectares a year ago. The area sown under rice increased by 2.6% to 387.04 lakh hectares while that under coarse cereals (jowar, bajra, maize and ragi) expanded by 3.3% to 189.58 lakh hectares in the period 1 June-23 September 2016. The acreage under oilseeds, as a group, stood at 189.16 lakh hectares, up 3.0% compared with last year, with groundnut recording a staggering 29.0% increase, chiefly due to higher plantings in Andhra pradesh, Rajasthan, Karnataka and Gujarat.

production of food crops (million tonnes) and commercial crops (lakh tonnes)

2011-12 2012-13 2013-14 2014-152015-16 (4th advance estimate)

2016-17 (1st advance estimate)

Rice 92.78 92.37 91.5 91.39 91.31 93.88

Coarse cereals 32.44 29.78 31.19 30.94 27.17 32.45

pulses 6.05 5.92 5.99 5.73 5.54 8.71

Total foodgrains 131.27 128.07 128.68 128.06 124.02 135.04

Oilseeds 206.91 207.91 226.13 191.89 165.93 233.62

Cotton 352.00 342.20 359.02 348.05 301.47 321.23

Sugarcane 3610.37 3412.00 3521.42 3623.33 3521.63 3052.46

Source: Ministry of Agriculture

However, a key pressure point with regard to the sowing of major kharif crops is cotton, whose acreage has fallen by 11.6% over the last year, mainly due to poor rainfall in Gujarat, the key cotton-growing State in the country.

Going forward, improved reservoir levels and high residual soil moisture will be supportive of the forthcoming Rabi crop. The Rabi crop accounts for nearly 50% of country’s total food output.

In addition, the North-East monsoon from October to december is important for southern India, which receives 30% of its annual rainfall in these months.

monsoon Performance boosts foodgrain Production

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30 | October 2016 Communiqué

The National Centre on Cold Chain development (NCCd), Government of India, organized a week-long training program in cold chain management with the Government of France at the Cemafroid Training Institute in paris, from 11 September.

CII’s Food and Agriculture Centre of Excellence (FACE), participated in the training program, along with the deputy Secretary, Ministry of Food processing Industries, and the directors, Horticulture department, of Haryana, Gujarat, and Assam.

Cold chain is a highly cross-functional domain, encompassing life sciences and biology, logistics, hardware, environmental sciences, power, IT, and multiple cross-regional practices. The rigorous training focussed on technical aspects of cold chain management while developing cross-functional understanding across related skill-sets, with interactive sessions, case studies, field visits, experience-sharing and tutorials.

As an outcome of the program, CII FACE plans to develop the training vertical in the area of cold chains with specific modules for reefer vehicles, cold store operators, and warehouse owners, etc.

At the Cemfroid training program, in France

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pOlICy pERISCOpE

cold chain Management

Just as in the case of other departments, the Ministry of Finance will provide gross budgetary support to the Railways for incurring

its capital expenditure.

According to the Government, the unified budget will bring the

Railways centerstage and present a holistic picture of the financial position

of the Government. Besides, it would help simplify procedures and promote good governance. Consequent to the merger, the appropriations for Railways will form part of the main Appropriation Bill.

Welcoming the merger, CII said the Cabinet decision to do away with a separate rail budget is a landmark move which would facilitate decision-making based on commercial considerations, and demonstrates firmly that the Government means business. It meets a long-standing demand of Industry.

The Cabinet has approved the merger of the Railway Budget with the General Budget

while announcing specific financial and administrative arrangements which would help the Railways maintain its autonomy.

It has been announced that the Railways would continue to maintain its distinct entity status as a departmentally-run commercial undertaking, as while its functional autonomy would be retained with the delegation of financial power rules to be continued, as is the case at present. After the merger, the existing financial arrangements will continue wherein the Railways will meet all its revenue expenditure from revenue receipts. At the same time, the Railways would not have to pay dividend to the Central Government and its capital at charge would stand to be wiped off.

Merger of rail and Union Budget

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The Goods and Services Tax (GST) is a significant taxation reform in India. By amalgamating several Central and State levies, the GST proposes to

simplify the taxation system and enhance the ease of doing business for Indian enterprises. This technology-leveraged unified indirect tax regime will address the cascading effect of the extant tax system and have far-reaching benefits for all stakeholders, such as lower transaction and logistics costs, simplified compliance, digitalization and simplification of processes, a common market throughout the country, and enhanced global competitiveness.

Indian Micro, Small & Medium Enterprises (MSMEs) will gain tremendously from the GST. However, with the launch of the Model GST law in the public domain, the initial euphoria has given way to some areas of concern regarding its various clauses and processes. Uncertainty about claiming the Input Tax Credit (ITC), multiple registrations and returns, transference of tax liability, complex procedures, etc. are some problem areas for MSMEs.

In order to analyze the potential impact of the GST on MSMEs, enhance MSME preparedness to efficiently adapt to the new tax regime, and to discuss measures and recommendations to address the various concerns of the sector, CII organized a policy dialogue Session on the 'Impact of GST on MSMEs in India' on 28 September in New delhi.

The Ministry of MSME will work to enhance the technological upgradation and technical literacy of MSMEs to enable them make optimal use of the technology-enabled platform for GST, stated Mr S N Tripathi, Additional Secretary and development Commissioner, Ministry of MSME. The Ministry will also work with CII to enhance GST awareness amongst its member MSMEs, he added.

M r N e e r a j prasad, Additional C o m m i s s i o n e r ( G ST ) , C e n t r a l Board of Excise

& Customs, said the Government is forging ahead with historic speed to launch the GST in a timely manner. Areas such as the ITC and simplification of processes form the core of the ongoing discussions to finalize the GST model, he said. The threshold exemption limit has been set at `20 lakhs, as against the earlier proposed limit of `10 lakhs, which bodes well for MSMEs, as many of these enterprises will be saved from undertaking GST compliances, he said.

In another attempt to ease the compliance burden for small traders, the Government has announced the composition/compounding scheme, wherein traders with gross turnover cut-off of `50 lakhs will pay 1-2%, which is much lower than the GST rate. The Government has also set up the GST Network (GSTN) for the online administration of the dealer registration process, tax payment and tax return filing, and refund to tax payers with respect to GST, said Mr prasad.

GST will result in a simplified and transparent tax regime which is easier to administer and monitor, said Mr Vashishtha Chaudhary, Senior Vice president, Goods and Services Tax Network (GSTN), explaining that taxpayers registered under VAT, Service Tax, Central Excise duty, etc. will be automatically migrated to the GSTN.

The discussions during the session highlighted that the benefits of this revolutionary tax regime for Indian industry would be lost if not accompanied by a set of simple procedures to reduce the compliance burden on businesses, especially MSMEs. Also, the Government needs to undertake sustained initiatives to educate

MSMEs about the various provisions and compl iance r e q u i r e m e n t s u n d e r G S T through seminars, c o n f e r e n c e s , training sessions, etc, for smooth and swift transition to the new regime, it was stressed.

Impact of Gst on MsMes

Vishal Pratap Singh, Deputy Commissioner (GST) Central Board of Excise & Customs, Ministry of Finance; Vashishtha Chaudhary, Senior Vice President, GST Network;

Neeraj Prasad, Additional Commissioner (GST), Central Board of Excise & Customs, Ministry of Finance; S N Tripathi, Additional Secretary & Development Commissioner, Ministry of MSME; and Ashok Saigal, Chair, Sub Group on Ease of Doing Business,

CII National MSME Council, at a policy dialogue session on GST in New Delhi

MSME METER

32 | October 2016 Communiqué

Communiqué October 2016 | 33

Mr Ananth Kumar, Minister of Chemicals and Fertilizers, and parliamentary Affairs, said that a meeting of medical technology

manufacturers would shortly be held with the Ministers of Health, Environment and Forest, and Finance, to discuss and resolve the issue relating to the ban on the import of refurbished medical devices with extended warranty into the country. “I will lead the delegation and I request dr Naresh Trehan to be part of the delegation,” he added. The Minister, who was inaugurating CII’s 9th Medical Technology Conference on 2 September in New delhi, was referring to a recent notification of the Government of India, banning the import of medical technologies which are more than three years old, creating widespread concern in the industry.

pointing to the huge potential of medical technology equipment in India, Mr Ananth Kumar urged Indian companies to work towards catering to not only India’s 1.2 billion population, but also to over 4 billion people in Asia and Africa, who have similar health profiles and challenges. The Government has taken many proactive

decisions to boost the medical equipment sector, with the result that the total production of medical equipment during the last two and a half years has crossed US$ 2 billion. yet, India has to go a long way to fulfill the potential and to cater to the needs of its millions, he said, noting that the recently-passed GST Bill which is being ratified by the States is expected to bring down the prices of medical equipment by 12%, ensuring better accessibility to the people. He said his Ministry would set up an Industry-Government task force to draw up a roadmap for accelerated growth of the medical devices sector in India.

The Minister called for a consensus approach on the regulatory mechanism needed for the sector, and a mission mode approach to develop the medical devices segment, concurring with the idea of a separate ministry for pharmaceuticals and medical devices, to give a critical push to this segment. price regulatory mechanism has a role in the Indian context since there is wide disparity among different layers of population for accessing medicines and medical equipment, he said.

Pavan Choudary, Co Chairman, CII Medical Technology Division, and MD, Vygon India Pvt Ltd; Himanshu Baid, Chairman, CII Medical Technology Division, and MD, Polymedicure Ltd; Ananth Kumar, Minister of Chemicals and Fertilizers, and Parliamentary Affairs; Dr Naresh Trehan, Chairman, CII Healthcare Council, and CMD, Medanta – The Medicity, and Suresh Vazirani, CMD, Transasia

BioMedicals Ltd, at the 9th Medical Technology Conference in New Delhi

FOCUS

healthcare

tappingopportunities inMedical technology

34 | October 2016 Communiqué

India, with a large reservoir of world-class software engineers and experts, can easily become a strong hub of medical equipment manufacturing by combining software skills with hardware capabilities. “What we need is research and development, innovation and greater stress on the hardware industry to move up in the value chain,” said Mr Ananth Kumar. The medical devices parks coming up in Andhra pradesh and Gujarat would be game-changers, he said, urging other States to follow this model.

The Government has taken proactive steps to boost the medical equipment industry by including it in the 'Make in India' program, allowing 100% FdI, streamlining the import duty structure, and implementing the cluster approach for mass scale medical device production, said Mr Himanshu Baid, Chairman, CII Medical Technology division, and Md, polymedicure ltd. However, concerns such as the delay in setting up the regulatory body for pharmaceutical and medical devices, unwarranted regulations such as ban of plastic bags in blood banks, etc, need to be resolved, he said.

dr Naresh Trehan, Chairman, CII Healthcare Council,

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and CMd, Medanta – The Medicity, called for a holistic approach to healthcare in India, combing the traditional knowledge of disciplines like Ayurveda, Unani, etc, with allopathy and technology, to not only treat disease, but also ensure that people are free from disease. Technology should be used to enhance people’s accessibility to health delivery systems at minimal cost, he said.

Mr pavan Choudary, Co-Chairman, CII Medical Technology division, and Md, Vygon India pvt ltd, pointed to anomalies such as the ban on import of refurbished medical devices with extended warranty, and urged the Government to resolve these issues at the earliest. He underscored the need for a judicious combination of human expertise, hospital infrastructure and technology to ensure medical care at affordable cost.

A huge technical gap still persists in our medical device segment, where 70% of the medical equipment is imported, whereas countries like Ireland have created good infrastructure for manufacturing medical devices, said Mr Sidhartha Nigam, partner, Grant Thornton Advisory pvt ltd.

Communiqué October 2016 | 35

Boosting the Medical Devices sectorThe Government

is fully aware of the complexities of the medical device industry, and would take adequate steps for its organized g r o w t h i n a calibrated manner. Th i s was t he assurance given by policy-makers to members of the medical devices industry, during their interface at the 9th Medical Technology Conference.

Mr K B Agarwal, Additional Secretary, Ministry of Health and Family Welfare, stressed the need for an integrated health information system, storing the health profiles of all citizens to be retrieved as and when required. This data bank would not only help enhance health expenditure, but also ensure optimal spending, he said, suggesting that the storage of this data could be based on the Aadhar card.

laying emphasis on greater use of technology, Mr Agarwal felt that diagnostic tests should be conducted in a patient-friendly way. Collection centers, facilities for testing, and disseminating results to the patients on line or offline should be undertaken at a faster pace across the country, he said.

Emphasizing that ethics should lie at the root of the medical profession, he urged manufacturers to follow self-regulation, not only for proper pricing of medicines and equipment, but also to obviate Government intervention through regulatory measures.

dr K Rajeshwara Rao, Joint Secretary, Ministry of Health and Family Welfare, opined that medical insurance would be a major enabler to spread universal health. At present, 24 States have medical insurance schemes of various kinds, and more are coming out with schemes, he said, expressing the hope that 40 crore people would be covered under universal health insurance in the next five years.

Whatever decision a regulator is going to take on the pricing of medical equipment would be industry-sensitive, said Mr Sudhansh pant, Joint Secretary, department of pharmaceuticals, assuring that companies which manufacture better products would be given flexibility in pricing. The Government is fully aware that the medical devices segment is nascent, and that strong infrastructure has to be built to boost production and improve quality, he said, suggesting that State Governments also need to be brought on board to promote the sector. The initiative of some States to set up medical devices parks and clusters is a good augury, he felt.

There has been an incremental growth in the number of hospital beds added every year in the country, said Mr K l Sharma, Joint Secretary, Ministry of Health and Family Welfare. He urged the medical equipment industry to consider global markets, rather than limiting their production targets to domestic demand.

In the discussion that followed, industry representatives called for special treatment for the medical devices sector, since it is brain and technology-driven. They also said that schemes for the development of the sector should be patient-centric.

FOCUS

Marcus Simon, Global HTA & Reimbursement Manager St. Jude Medical, Belgium; Badhri Iyengar, MD – South Asia, Smith and Nephew Healthcare Pvt Ltd; Probir Das, MD, Terumo India; K B Agarwal,

Additional Secretary, Ministry of Health & Family Welfare; Dr K Rajeswara Rao; Joint Secretary, Ministry of Health & Family Welfare, and Malti Jaswal, COO, Health Insurance TPA of India Ltd

36 | October 2016 Communiqué

Communiqué October 2016 | 37

With the overarching theme of ‘Future prospects of India’s Health Insurance sector and its Sustainability,’ the 10th edition of the CII

Health Insurance Summit 2016, held on 22 September in New delhi, deliberated upon opportunities for a closer association of insurers and service providers, for catalyzing better patient delivery and transparency in interpretation and delivery. The key discussion topics spanned the national health protection scheme, the future of health insurance products, policy perspectives, and setting sustainable business practices.

The prime Minister’s National Health Insurance Scheme would be a game-changer in widening the coverage under health insurance and enhancing benefits, said Mr Fagggan Singh Kulaste, Minister of State of Health and Family Welfare, in his inaugural address. Inviting inputs for embellishing the existing scheme, he said dialogue between stakeholders, including the health

and insurance industry, would help identify areas for the Government to partner with the private sector, to create more facilities for patients.

The Minister said that the new national insurance scheme would draw in a large number of people and entail large financial commitment from the Government. It would dovetail the fragmented schemes run by different States and other agencies to make the project more homogeneous and impact-oriented. The proposed scheme would cover 40 to 50% of the population. “We will still have another 50% of the population to be covered, which is a huge challenge, calling for continuous dialogue with stakeholders to reach out to more people,” the Minister pointed out. The Government, he said, would monitor the implementation of the scheme through data collated from different sources and would share it with industry.

Mr p J Joseph, Member (Non-life), Insurance Regulatory

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Segar Sampathkumar, Mentor & Co-Chairman, CII Sub-Committee on Accessibility-Health Insurance, and General Manger, New India Assurance Co. Ltd; P J Joseph, Member (Non-Life), Insurance Regulatory and Development Authority (IRDA); Faggan Singh Kulaste, Minister of State of Health & Family Welfare; Dr Naresh Trehan, Chairman, CII Healthcare Council, and CMD, Medanta - The Medicity; A Vaidheesh, Chairman,

CII Sub-Committee on Accessibility-Health Insurance, and Vice President, South Asia & MD, GSK, and Neelesh Garg, Co-Chairman, CII Sub-Committee on Accessibility-Health Insurance, and CEO & MD, TATA AIG, at the CII Health Insurance Summit in New Delhi

Widening and enhancing the reach of Health Insurance

38 | October 2016 Communiqué

and development Authority (IRdA), said the number of people covered under health insurance has touched 36 crores now, with a large part of this number under the government scheme. He expressed the hope that the new IRdA guidelines, such as provisions for pilot products, which allow insurance companies to withdraw a project if it fails to click in the market, allowing wellness and preventive packages, permitting offer of discounts etc, would promote health insurance in a significant manner. Insurance companies could bring down the premium if the number of people covered under the scheme increases, attracting more people to take insurance cover, he said, calling for concerted efforts to prevent frauds and unethical practices.

Key government officials, including dr K Rajeswara Rao, Joint Secretary, Ministry of Health and Family Welfare;MrAlokKumar,Advisor–Health,NITIAayog;DrPradeepDua,ResearchOfficer,MinistryofAYUSH;and Ms yegnapriya Bharath, General Manager (Health Insurance), IRdA, among others, also participated in the discussions, on how health insurance can be an enabler for universal health coverage, and the need for new products to make the schemes patient-centric.

dr Naresh Trehan, Chairman, CII Healthcare Council, and CMd, Medanta-The Medicity, urged the stakeholders to close the gaps among them, and arrive at a consensual approach on vexatious issues such as the steep administrative charges levied by insurance companies, transparent hospital billing, wrong claims, etc. With the launch of the prime Minister’s national insurance scheme, business opportunities would go up considerably, he said, stressing that “we have to earn people’s faith in the system to expand our business horizons.” The focus should be on managing care through preventive and wellness measures, which would help keep people away from hospitals, he said.

Mr Neelesh Garg, Co-Chair, CII Sub-Committee on Accessibility, Health Insurance, and CEO & Md, Tata AIG, underscored the need for an ideal sustainable universal health insurance architecture which should include Opd, post-hospitalization coverage, wellness packages, etc. The integrated package should be for the entire life-cycle of a person and cover all possible

eventualities relating to health and wellness, he felt.

An ideal health insurance ecosystem for India should have more private players. Only six crore people are covered under pr ivate insurance schemes, which should go up substantially, observed Mr A Vaidheesh, Chairman, CII Sub-Committee

on Accessibility –Health Insurance, and Vice president, South Asia, and Md, India, GSK.

Mr Segar Sampathkumar, Mentor and Co-Chairman, CII Sub-Committee on Accessibility-Health insurance, and General Manager, New India Assurance Co, pointed to customer satisfaction and sustainability as the key drivers for the health insurance sector in India.

The key takeaway from the deliberations was the statement of intent by the Government to strengthen the process of interface with the stakeholders, in general, and crystallizing the broad contours of the prime Minister’s national health insurance scheme, in particular.

Inclusion of Opd, post-hospitalization care, and preventive and wellness care in the bouquet of insurance cover would undoubtedly shore up the confidence of the people in the system. Equally important is the need for enhancing the scope and coverage of the Rashtriya Swasthya Bima yojana (RSBy). Imaginative planning, greater interplay of actuarial science and social dynamics, collation of quality data on patients’ profiles, leveraging idle capacities lying with private hospitals, transparency in billing, expeditious settlement mechanism by insurance companies, launch of more sustainable and well-crafted products, etc, were identified as major drivers of the future growth of health insurance in India.

Two points were flag-marked: one, health cannot be left to the care of the Government alone, which has to address other equally-demanding sectors like education, infrastructure, and the like. Two, viable and result-oriented health insurance schemes are run on public and private partnerships the world over.

Insurance is a great enabler to judiciously blend social commitment with business perspectives. This was the key message emanating from the recently concluded 10th Health Insurance Summit.

FOCUS

Dr Shubnum Singh, Chief Executive, Max Institute of Health Education & Research; Dr Pradeep Dua, Research Officer, Ministry

of AYUSH; Dr K Rajeswara Rao, Joint Secretary, Ministry of Health & Family Welfare, and Neelesh Garg

Communiqué October 2016 | 39

40 | October 2016 Communiqué

In the year 2006, CII embarked upon a significant journey in the history of Indian manufacturing. The Visionary leaders for Manufacturing (VlFM)

program, to develop leaders who would transform India’s manufacturing sector, was launched under a technical cooperation agreement signed by the prime Ministers of India and Japan. In unique and successful collaboration, CII, under the guidance of prof Shoji Shiba, joined hands with three leading academic institutions of India – IIT Kanpur, IIT Madras and IIM Calcutta.

Here are some glimpses of the exciting ‘hop, step and jump’ journey over the last decade…

The CSM SystemThe VlFM Initiative, renamed Champions for Societal Manufacturing (CSM) since 2014, is an umbrella for five programs:

• CEOsprogram

• SeniorManager’sCourse

• MiddleLevelManager’sCourse

• VisionarySMEProgram

• Village Buddha (added in 2014 when the initiativewas renamed CSM)

The first three programs were envisioned with the aim of creating leaders at every level within an organization. Given that SMEs form the backbone of India’s manufacturing sector, VlFM looked at creating locomotives of transformation in that sector as well, with a Visionary SME program customized to provide the very different types of interventions and hand-holding that such companies need.

MIlESTONE

manufacturing

10 years of transforming Indian Manufacturing

From Dreams to reality

exponential growth in the number of graduates

Largest number of man-days of visits to Japan from Indian

manufacturing companies

35 publications

published

the vLFM Journey

Communiqué October 2016 | 41

The Warm Up: Piloting Breakthrough Management in India In 2004, CII set up a meeting for prof Shoji Shiba with the then president of India, the late dr ApJ Abdul Kalam. laying out the direction for India’s manufacturing strategy, this meeting became the trigger for what is today a movement. during the 45-minute meeting, it was agreed that prof Shiba would guide the creation of ‘locomotives’ or engines of growth for Indian industry. India, felt dr Kalam, needed to build equivalents of Toyota and Sony, acknowleding that such a transformation would, however, require years of painstaking work.

The first learning Community was set up to pilot Breakthrough Management in India. A special India edition of the first textbook on Breakthrough Management was released in the Embassy of Japan by Ambassador Enoki. later, the learning Convention was instituted to provide a platform to share the success stories of the learning Community.

In 2006, a Task Team was formed, funded by the Japan International Cooperation Agency (JICA), and supported by CII and academia. The team conducted a survey of more than 100 Indian corporates and also organized focus group workshops with industry and academia, culminating in a report detailing the way forward for implementing such a program. Following the report, the Governments of Japan and India, the National Manufacturing Competitiveness Council, India, JICA, IIT Kanpur, IIT Madras, IIM Calcutta, and CII, came together to design and launch the VlFM program.

The Hop: Creating a Critical Pool of Visionary Leaders With the experience of two learning Communities and the findings of the Survey, various courses were

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Horizontal exploration

A special session on VlFM’s 10-year journey was organized to commemorate its achievements, on 21 September in Gurgaon. The event was attended by Mr Kenji Hiramatsu, Ambassador of Japan to India, as Chief Guest, along with Mr Takayoshi Tange, Senior Representative, JICA India, Mr Venu Srinivasan, past president, CII, Chairman, VlFM Initiative, and CMd, TVS Motor Company, and Mr Chandrajit Banerjee director General, CII.

A research monograph, ‘On the path to progress: The Journey of Three Villages,’ an outcome of the application of Village Buddha learnings in a rural set up, undertaken with active support from the TVS Motor Company, was released on the occasion.

The session was organized alongside Module 2 of the VlFM Senior Manager program, on ‘Horizontal Exploration,’ held from 18-22 September,for 60 senior professionals from 33 companies. The module, led by Mr Takeyuki Furuhashi, Japanese expert on the Toyota production System, focused on the ‘Flow’ concept in manufacturing, thereby integrating the supply chain, to help companies unlock hidden potential and improve efficiency. A new tool called Q-VMAp (Quick-VMAp) was introduced.

JICA is exploring the setting up of a network of graduates for both the VlFM Senior Manager’s Course and the pGpEX(VlM) program, to measure the impact of the ten-year initiative by updating the database of the participants, highlighting success stories, and forming a community which will work towards sustaining the learning, and support their respective companies in realizing their Breakthrough goals. A two-member team from JICA visited the program on 21 and 22 September in this regard. The first milestone of updating the database would be achieved by december 2016.

Takayoshi Tange, Senior Representative, JICA India; Prof Shoji Shiba, Chief Advisor Champions for Societal Manufacturing; Chandrajit Banerjee, Director General, CII;

Kenji Hiramatsu, Ambassador of Japan to India; Venu Srinivasan, Past President, CII, Chairman, VLFM Initiative, and CMD, TVS Motor Company, and

Kenko Sone, Minister from the Embassy of Japan in India, at the 10th Anniversary CSM / VLFM Session in Gurgaon

42 | October 2016 Communiqué

designed under VlFM umbrella. Three key activities were launched in 2006-2007:

1 Senior Manager’s Course, being implemented by CII

2 Middle level Manager’s Course, called pGpEX(VlM), being implemented by IIT Kanpur, IIT Madras, and IIM Calcutta

3 Japan visits to support both these programs

The Step: Diffusing and Recognizing Successful Contribution

By 2010, CII was ready to take the next step – a big push forward to diffuse the learnings by increasing the reach of the initiative. The Visionary SME program was launched for SMEs, based on Module 2 of the Senior Manager’s program. A VlFM company, the Anand Group, volunteered to pilot the VSME program. Today, led by Chief Faculty Mr Takeyuki Furuhashi, the program is successfully transforming customer-supplier relationships in Indian manufacturing.

In tandem, graduates and faculty from the Senior Manager ’s Course were at work developing breakthrough products: the Godrej ChotuKool, Sona EpAM, Kirloskar Submersible pump, and Technova digital printer are a few that achieved global recognition. In fact, Chotukool received the Edison Award from USA in 2012.

By the time the program entered its fifth year, it was time to strategize towards making it a sustainable initiative. A team of Indian stakeholders, including representatives of the Government of India, and partners from academia and industry, participated in a Sustainability Mission to Japan.

As the initiative moved towards its goal of transforming Indian manufacturing, it received appreciation from the governments of both India and Japan. Recognizing prof Shoji Shiba’s contribution to Indian manufacturing, the Government of India conferred upon him the padmashri Award in 2012. In 2014, the program received another extension of 2 years and 8 months from the Government of Japan.

In the same year, the Government of India recognized CSM/VlFM as a key component of its flagship ‘Make in India’

initiative. Accordingly, the department of Industrial policy and promotion (dIpp) took over the program as the Government’s nodal agency.

In early 2016, the 1st Champions for Societal Manufacturing Summit was organized, coinciding with the Make in India Summit in Mumbai.

The JumpThree successes signify the ‘Jump’ stage of the project:

1. The Village Buddha project was launched with more than 100 graduates from over 30 companies.

2. The ‘Edge-digi’ Godrej Refrigerator won the prestigious G Mark, a recognition of excellence in design, from the Japan Institute of design promotion. This was an outcome of the learnings in the VlFM classroom.

3. Tata Motors signed up for the VSME program, catapulting the initiative to the Original Equipment Manufacturers (OEM) level. Subsequently, TAFE (Tractors And Farm Equipment ltd) too signed up for the initiative in 2016. The adoption of the program to transform supplier relationships by two large and well-respected OEMs is a great example for Industry to follow.

In April 2016, JICA extended the project by another 2 years and eight months, till September 2018. The initiative was renamed Champions for Societal Manufacturing, aligned with its objective of bridging the gap between industry and society. The objectives for the CSM project today can be articulated as:

1. Create the ‘Indian’ way

2. Scale up the programs for taking the ‘jump’ with confidence

3. Form a sustainable community of graduates from the Senior Manager’s Course.

The VlFM initiative has grown like a banyan tree over the last decade. Its aerial roots

have help the program evolve and expand, developing, over the years, into trunks themselves, capable of supporting many more branches, and growing new roots to become a source of sustenance for those below.

Today, the seedling that took root ten years ago is helping close to 5000 graduates from nearly 2000

companies turn their dream of transforming Indian Manufacturing into reality.

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Communiqué October 2016 | 43

DeFeNce aND aerosPace

Energizing the Indian Aerospace Industry

CII and the Centre for Air power Studies, in association with the Indian Air Force, organized the 11th international conference on ‘Energizing the Indian Aerospace Industry: The Changing Environment’ on 1 - 2 September in New delhi. The intent of the conference was to link the Government’s ‘Make in India’ drive with policy and plans post-dpp 2016, and explore how the Indian aerospace industry can leverage the new avenues generated.

The discussions were free and frank, with general consensus that the renewed thrust of the Government is energizing the indigenous defence sector, and that joint efforts by the Government, the users and Indian industry, would catalyze greater involvement of foreign OEMs in the nation’s indigenization push. There was also across-the-board acceptance that there still remain areas which need the Government’s attention, to support Indian private industry in setting up an indigenous defence manufacturing base.

Make in India Seminar Engine technology in armored vehicles, aircrafts and naval vessels is undergoing major transformation. power options such as hybrid electric engines and hydrogen fuel cells that promise better efficiency and reliability can effectively transform future warfare. It is important to develop and harness these key technologies in India to achieve self-reliance in defence manufacturing.

With the support of the department of defence production, Ministry of defence, CII organized a ‘Make in India' seminar on 'Indigenous diesel Engines for Naval platforms/Armored Tanks and Fighting Vehicles’ on 16 September in New delhi.

The seminar was inaugurated by Mr Ashok Kumar Gupta, Secretary, department of defence production, Ministry of defence, with special invitees from the Ministry and the Armed Forces.

Air Marshal Vinod Patney, SYSM PVSM AVSM VrC (Retd), Director General, Centre for Air Power Studies; T Suvarna Raju, Chairman, CII National Committee on Aerospace, and CMD, Hindustan Aeronautics Ltd; Air Chief Marshal Arup Raha, PVSM AVSM VM ADC, Chief of Air Staff, and Chairman, Chiefs of Staff Committee; and SP Shukla,

Co-Chairman, CII National Committee on Aerospace, and Group President – Aerospace, and Defence Member – Group Executive Board, Mahindra Group; at the 11th international conference on

‘Energizing the Indian Aerospace Industry, in New Delhi

Inspector General S K Goyal, PTM, TM, DDG (Material & Maintenance), Indian Coast Guard; Rear Adm Kiran Deshmukh, VSM, Assistant Chief of Material (D&R), Indian Navy; Lt Gen Subrata Saha, UYSM, YSM, VSM**, Deputy Chief of Army Staff, Indian Army; Ashok Kumar Gupta,

Secretary (DP), Ministry of Defence; Rear Admiral AK Verma VSM (Retd), Co-Chairman, CII National Committee on Defence, and CMD, Garden Reach Shipbuilders & Engineers Ltd; and Ratish Jain, Chairman, CII Defence Sub-Committee on Marine Systems, and MD,

Resistoflex Group, at a ‘Make in India’ Seminar in New Delhi

Sectorscape

44 | October 2016 Communiqué

portfolio for excellence

Sustainable Development

11th Sustainability SummitThe year 2016 brought a new vision focussing on the Sustainable development Goals (SdGs) and the paris climate deal. “The seventeen Sustainable development Goals are our shared vision of humanity and a social contract between the world’s leaders and the people. They are a to-do list for people and planet, and a blue print for success,” in the words of UN Secretary General Ban Ki-moon. Turning this vision into reality is primarily the responsibility of countries, but no country can do it alone. It requires new innovative partnerships and models to make it happen. We all have a stake and a contribution to make including government, business, civil society and other representatives.

CI I ’s theme for the year 2016-17 is ‘Building National Competitiveness.’ One of the six key enablers it has identified for building national competitiveness is Sustainability. Aligned with this vision, the CII-ITC Centre of Excellence for Sustainable development organized the 11th edition of the Sustainability Summit on

14-15 September in New delhi, with an inclusive focus, spanning topics such as Responsible Businesses, Climate Action, Renewable Energy, Smart Cities, Electric Mobility, Responsible Mining, Biodiversity Conservation, Sustainable Water Solutions, and Integrated Reporting.

Indians are naturally innovative, sustainable and civilized, said Mr Anil Madhav dave, Minister of State (Independent Charge) of Environment, Forests and Climate Change, at the opening plenary. He emphasized that India needs to decolonize, and develop policies that suit local conditions and sensitivities. Indian culture has always been close to the principles of sustainable development with a quest for innovative

ideas and solutions. However, due to some policies which had not been well-thought out, the country was facing environmental challenges such as soil degradation due excessive use of inorganic fertilizers, and rampant extract ion of groundwater on

account of free electricity to farmers. Only Indian solutions can help us meet the Intended Nationally

determined Contributions (INdCs), as agreed during COp21 in paris last year, he stated.

Electricity has a key role in achieving the globally-defined 17 SdGs, as economic

Sanjiv Puri, COO, ITC Ltd; Amitabh Kant, CEO, NITI Aayog; Anil Madhav Dave, Minister of State (Independent Charge) of Environment, Forests and Climate Change, and Shobana Kamineni, President Designate, CII, and Executive Vice-Chairperson, Apollo Hospitals Enterprise Ltd,

at the 11th Sustainability Summit in New Delhi

Communiqué October 2016 | 45

development is directly linked with the availability and a ffordab i l i t y o f power, stated Mr piyush Goyal, Minister of State (Independent Charge) of power, New & Renewable Energy, Coal, and Mines. “India, as on date, is a power-surplus country as we can generate 50% more power in relation to current production. The Government is working on addressing last mile connectivity,” he said.

“The challenge for India is innovation and sustainable growth”, said Mr Amitabh Kant, CEO, NITI Aayog. Highlighting the importance of innovation and sustainable urbanization, he quoted from a McKinsey report that, “every minute 30 Indians are moving to urban areas." Urbanization will have to be at an unprecedented scale and more than the urbanization achieved in the last 500 years. The challenge is to make urbanization innovative, sustainable, and smart, given the limited resources at India’s disposal, he said. Towards meeting another developmental challenge, availability of water, Mr Kant proposed regulation and pricing of water, and deployment of technology to recycle and harvest water.

Mr yuri Afanasiev, UN Resident Coordinator, and UNdp Resident Representative in India, reiterated the importance of Indian actions in the global journey towards achieving the SdGs. What China has been for the Millennium development Goals (MdGs), India is for the SdGs, he said. Given the size and complexity of social problems, India needs come out with innovative solutions to address massive developmental challenges like the creation of 175 GW of renewable energy capacities, fulfilling the Swachh Bharat targets, etc. The huge financial resources needed to move forward on developmental goals require the engagement of the private sector, he said.

“Globally, there are top three risks to business, which are a matter of discussion in boardrooms,” stated Ms Shobana Kamineni, president designate, CII, and Executive Vice Chairperson, Apollo Hospitals Enterprise ltd, at the opening plenary. These are, the increasing intensity of environmental disasters because of climate change, global pandemics i.e. health risks to the larger community, and business sustainability, she explained.

The participation of business is very essential to meet the SdGs, and Indian industry has well-recognized its role, she said, noting that Indian industry had contributed `6400 crores under Corporate Social Responsibility programs in Fy2015.

“In the last few years, there have been great efforts, both at the global level as well as in India, to encourage industries to move towards sustainable business models. Industry bodies, private sector champions, governments and donors have been leading this movement,” said Mr Ajay S Shriram, past president, CII, and Chairman & Senior Managing director, dCM Shriram ltd. Welcoming the Government’s efforts to promote renewable energy, he said Indian industry has given green energy commitments of over 200,000 MW.

Mr Sanjiv puri, Chief Operating Officer, ITC ltd noted that, in today’s business environment, the whole meaning of competitiveness is getting redefined. Given the societal challenges, there is a need for responsible competitiveness rather than merely extreme competitiveness, he said, requesting Mr dave to develop policies that promote market systems for recognising sustainable business models.

Other prominent speakers at the 11th Sustainability Summit included Mr Manoj Kumar Singh, Joint Secretary, Ministry of Environment, Forest and Climate Change, India;MrAlexandre Ziegler, Ambassador of France toIndia;ProfAsitKBiswas,DistinguishedVisitingProfessor,lee Kuan yew School of public policy, Singapore, and Founder, Third World Centre for Water Management, Mexico; Mr Farhad Forbes, Co-Chairman, ForbesMarshall; Mr S Vijay Iyer, Chairman, CII EnvironmentCommittee,andMD,RioTinto– India;MrRaviSingh,SecretaryGeneral&CEO,WWF India; andMrNeerajKulshrestha, Chief Operating Officer, BSE ltd, among many others.

Yuri Afanasiev, UN Resident Coordinator & UNDP Resident Representative in India; Piyush Goyal, Minister of State (Independent Charge) of Power, Coal, New & Renewable Energy and Mines, and

Ajay S Shriram, Past President, CII, and Chairman & Senior MD, DCM Shriram Ltd

pORTFOlIO

46 | October 2016 Communiqué

Leadership OrationThe CII Suresh Neotia Center of Excellence for leadership (CII-SNCEl) organized a leadership Oration by Mr Rajiv pratap Rudy, Minister of State (Independent Charge) of Skill development & Entrepreneurship, on 6 September in Kolkata.

Speaking on ‘preparing for Tomorrow through Entrepreneurship and Skill development,’ Mr Rudy reiterated his Ministry’s resolve to realize prime Minister Modi’s vision to make India the world’s skill capital, while admitting that building a skill eco-system across the country is a major challenge.

Towards improving the employability of the youth, the Government is all set to initiate a process to integrate skill with education for which financial assistance would be provided to the States, he stated. His Ministry has set up a corpus of `32,000 crores provided by the World Bank, along with the prime Minister's Kaushal Vikas yojana and the Apprentice yojana, to fund the States for developing skill sets among the youth, he added.

Welcoming the West Bengal Government’s decision to set up one Industrial Training Institute (ITI) in each block in the State, he said the directorate General of Training would grant affiliations to these institutes. The ITIs, he said, are being migrated from the labor ministry to his ministry, aligned with the vision of the prime Minister for a separate vertical for developing skills. His Ministry has also pitched for imparting skill education to students of classes 8-12, he said.

Leadership

Anil Vaswani, Chairman, CII West Bengal, and MD, Wesman Engineering Co Pvt Ltd; Rajiv Pratap Rudy, Minister of State

(Independent Charge) of Skill Development and Entrepreneurship, and Aloke Mookherjea, Chairman, CII-SNCEL Advisory Committee,

and Chairman, FlaktWoods Ltd at the Leadership Oration, in Kolkata

Green Business MoU with NBCC (India) LtdThe Indian Green Building Council (IGBC), part of CII, inked a MoU with NBCC (India) ltd, to work together in promoting green buildings in the country. The MoU also aims at development of green building resources, capacity building and reach-out.

dr. prem C Ja in , Chairman, IGBC and Chairman, AECOM India pvt ltd, and dr Anoop Kumar Mittal, CMd, NBCC (India) ltd signed the MoU, on 20 September in New delhi.

Energy Efficiency and Carbon FootprintA workshop on Energy Efficiency and Carbon Foot print was held in Visakhapatnam on 23 September, to disseminate the latest techniques and advancements in the field of energy management, share information on latest energy-saving ideas and technologies, and introduce Green House Gases (GHG) concepts and technologies. The program provided a macro-level approach to energy conservation in different equipment, and shared self-auditing techniques along with actual implemented case studies of different industries.

Energy Efficient TechnologiesCII, with support from the Shakti Sustainable Energy Foundation, has taken up an initiative for promoting energy efficient technologies by facilitating interactions among stakeholders including technology suppliers and financial institutions. As a part of this initiative, a workshop on ‘promoting High potential - low Investment Energy Efficient Technologies’ was held on 29 September in Nagpur.

Energy Conference 2016The 3rd edition of the Energy Conference 2016, held on 30 September in Trichy, focused on energy efficient technologies in the cement and manufacturing sectors.

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Signing of the MoU on Green Buildings in New Delhi

Communiqué October 2016 | 47

Water2nd Water Innovation Summit 2016The CII-Triveni Water Institute organized its 2nd Water Innovation Summit on 26-27 September, to ideate on immediate solutions to meet the challenges of water scarcity and water management for a growing economy. The program also included the National Awards for Excellence in Water Management, celebrating the impressive work being undertaken by industry in two categories, Within the Fence (within the company) and Beyond the Fence (CSR and other water-related projects for communities).

Water is at the core of sustainable development. Successful water interventions are required for sustaining economies at various scales, said dr Anil Kakodkar, Chief of Jury, CII National Awards for Excellence in Water Management, and Member, AEC, Bhabha Atomic Research Centre, stressing that ensuring the quality and quantity of water in our rivers and aquatic bodies is a key challenge. He shared the example of a village in Maharashtra which has solved its water-related problems through watershed management practices. Cooperation among the users is critical, and great results can be achieved if communities work together in improving access, availability and affordability of water, he said. people need to themselves become protectors of the water resource, he said, highlighting the need to monitor ground water situations, and share real-time

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status with the people.

The solution to water management lies in three areas: the way we work and organize, the way we think and plan, and the way in which we measure our progress, said Mr Arun Maira, Former Member, planning Commission. We need to create small organizations which can produce results on a scale and work efficiently and effectively, he said, adding that collaboration across jurisdictional boundaries is needed to manage the resource effectively.

dr Amarjit Singh, Officer on Special duty, Ministry of Water Resources, River development and Ganga Rejuvenation, called for efficient water management to ensure a prosperous future. Empowering the people with low cost instrumentation and information on what is available to them and what they can do about it will make them the biggest protectors of water bodies, he said, highlighting the need to crystallize collective consultations for water security into implementable action plans at the grassroots level.

Mr Nitin desai, Chairman, Institute of Economic Growth, and Former Under Secretary-General, United Nations, put forth five reasons for treating water differently from othernaturalresources.Water isessential forsurvival;it is a shared resource, across borders; it is a scarceresource (in 1951, the availability of water was 3000m3/head in India, which has now fallen below 1000m3/head and will probably settle between 600–700m3 whenthepopulationstabilizes); it isasoiledresource,due to chemical run-offs and untreated sewage, and it is a strategic resource, linked to human development, economic growth, regional development, peace and

Nitin Desai, Chairman, Institute of Economic Growth, and Former Under Secretary General, United Nations; Dr Amarjit Singh, Officer on Special Duty, Ministry of Water Resources, River Development and Ganga Rejuvenation; Dhruv M Sawhney,

Chairman, CII-Triveni Water Institute, Past President, CII, and CMD, Triveni Engineering & Industries Ltd; Katherine Russell, Director, Strategy and Corporate Affairs, Water Industry Commission for Scotland, and N K Ranganath, Co-Chairman, CII National Committee on Water, and MD, Grundfos India Pvt Ltd, at 2nd Water Innovation Summit 2016 in New Delhi

48 | October 2016 Communiqué

Communiqué October 2016 | 49

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Quality National Competition on Lean Six SigmaThe 10th National Competition on Six Sigma on 1-2 September in Bengaluru, was attended by 190 participants fromvariousindustriesandregions;allwinnersofearlierregional competitions. Of the 75 projects submitted, 54 were selected for the competition.

Mr l Krishnan, Md, Taegu Tec India pvt ltd, inaugurated the event, while Mr Rajesh Agarwal, Head, delivery Excellence & Risk Management- BpS, Tata Consultancy Services, and Mr Nagaraju Srirama, president and director, J.K. Fenner (India) ltd, were the guest speakers.

The Akshaya patra Foundation and a project from Tata Consultancy ltd were awarded special recognition for the uniqueness of their approach.

The winners

category 1: new Product development and customer-facing Projects

Winner Tata Motors ltd

1st Runner up Kirloskar Oil Engines ltd

2nd Runner up Max life Insurance Co ltd

category 2: Improvements in Service, IT and ITeS

Winner (large) Tata Consultancy Services ltd

Winner (Small) HdFC Bank ltd

1st Runner up ICICI Bank ltd

category 3: Improvements in continuous and bulk Organizations

Winner (large) lupin ltd

1st Runner up ITC ltd pSpd

2nd Runner up Times of India

category 4: Improvement in discrete manufacturing Organizations

Winner (large) Ashok leyland ltd

Winner (Small) Vishay Components Ind pvt ltd

1st Runner up Amara Raja-Two wheeler battery plant

2nd Runner up Tata Motors ltd

For more information on the CII IQ’s lean Six Sigma programs, please contact [email protected]

lives and livelihoods, he explained.

Mr dhruv Sawhney, Chairman, CII-Triveni Water Institute, past president, CII, and CMd, Triveni Engineering and Industries ltd, said that the Central Water Commission puts the cumulative damage from floods during the last 15 years at a whopping `2,64,000 crore.

The degradation and deterioration in the quality of surface water and groundwater is another problem, with more than 50% of the aquifers and riverine lengths being critical in one way or the other, he said. Water security has also become a major concern, be it national, regional, or local, and needs to be tackled now and tackled successfully, he stressed.

Mr N K Ranganath, Co-Chairman, CII National Committee on Water, and Md, Grundfos India pvt ltd, said water and the economy are inextricably linked. The demands of a rapidly-industrializing economy and an urbanizing society are coming at a time when the potential for augmenting supply is limited, water tables are falling, and water quality issues have increasingly come to the forefront, he said, highlighting the imperative for planners and Governments to be conscious of the needs of diverse water users, including communities, agriculture, industry, mining and the environment.

national awards for excellence in water management

Seven companies were awarded for their exemplary and innovative work in Water Management. In the ‘Within the Fence’ category, the award went to Bajaj Auto ltd, Waluj, Aurangabad,Maharashtra;Godrej&BoyceMfgCoLtd(AppliancesDivision),Shirwal,Maharashtra;TridentLtd(HomeTextileDivision),Barnala,Punjab;andMahindra& Mahindra ltd, plant 1, Nashik, Maharashtra.

In the ‘Beyond the Fence’ category, lupin ltd, GAIl (India) ltd and ITC ltd were recognized for implementing watershed initiatives at Junnar, Maharashtra;Jhabua, Madhya Pradesh; and Jhalawar, Rajasthan;respectively.

Winners of the CII National Awards for Excellence in Water Manangement in New Delhi

50 | October 2016 Communiqué

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Building capacityeNtrePreNeUrsHIP

Start-up Conclave 2016

CII, jointly with the Ministry of Skill development and Entrepreneurship, and young Indians (yi), organized the Start-up Conclave 2016 on 20-21 September in New delhi, with the theme, ‘Industry-Start-up Connect: To accelerate India’s economic growth driven by Start-ups.’

Israel succeeded because of its start-up ecosystem, which served as a greenhouse of creativity and innovation, said Mr daniel Carmon, Ambassador of Israel to India, adding that India and Israel have many things in common which could be leveraged for strengthening the start-up ecosystem in India.

Mr S Gopalakrishnan, Chairman, CII Start-Up Council, past president, CII, Co-founder, Infosys, and Chairman, Axilor Ventures, stressed the need to connect industry with academia to inspire young people to become entrepreneurs, and thereby create more jobs.

The conclave fostered discussion on the entrepreneurship policy and regulatory challenges and stressed on the importance of measures to positively impact the entrepreneurial landscape in the country. There was real-time match making between start-ups and industry, for both sides to understand each others' requirements.

Start-up Mission to IsraelCII led a CEOs' delegation focused on Start-Ups and Innovation to Tel Aviv and Jerusalem from 11-14 September.

during the visit, the delegation engaged with relevant Israeli stakeholders including government, industry, incubators, venture capitalists, universities, and start-ups, to explore ways to strengthen the collaboration between India and Israel in the start-ups and innovation arena. Israel’s strength in this area is renowned the world over.

CII signed a MoU with Tel Aviv University for the upcoming CII National Start-up Center in Amravati. Mr S Gopalakrishnan, Chairman, CII Start-Up Council, past president, CII, Co-founder, Infosys, and Chairman, Axilor Ventures, said the broad objective of the MoU is to promote and unleash the entrepreneurial potential of the youth through practical curriculum and initiatives at the university level, in addition to creating linkages with other organizations dealing with youth economic empowerment. The MOU would also

• Support potential entrepreneurs in converting theirbusiness ideas/dreams into businesses, and

• Empower and assist the youth, especially youngwomen, to move from the informal sector to the formal sector and facilitate their transformation.

Navas Meeran, Co-Chairman, CII Start-up Council, and MD, Eastern Condiments Pvt Ltd; Daniel Carmon, Ambassador of Israel to India; S Gopalakrishnan, Chairman, CII Start-Up Council, Past

President, CII, and Co-founder, Infosys, and Chairman, Axilor Ventures, and Harkesh Kumar Mittal, Adviser, Member Secretary,

National Science & Technology Entrepreneurship Development Board, at the Start - Up Conclave in New Delhi

Kris Gopalakrishnan and Prof David Mendlovic signing the MoU for CII's National Start up Center in Andhra Pradesh, as Prof Klafter, President, Tel Aviv University, and Pavan Kapoor, Ambassador of

India to Israel, look on

52 | October 2016 Communiqué

The webinar focused on the anticipatory delivery of knowledge, connecting with people at the right time, and the power of knowledge recovery at a critical time.

Knowledge Management (KM) has changed extensively over the last decade, with the development of cloud-based content management and collaboration platforms, as also machine learning and social networking capabilities. Changes in business modules, the shift to a ‘knowledge-based economy’ and the new information era have brought in new resources for companies to use in business processes.

Organizations today are evolving at a faster pace, defying traditional business models and implementing KM as a key tool for success. KM is a day-to-day process through which organizations generate value from their intellectual capital and knowledge-based assets with a major role for the transfer of relevant information for decision-making across all levels of structure and corporate governance. To prepare and survive in the new era, there is a need to re-imagine the work module and adopt a host of new concepts, techniques and tools, which can help leverage the business in the new world.

The session, conducted by Mr Nikhil Nulkar, practice lead for Knowledge Management, Happiest Minds Technologies, Bengaluru, received good response from participants from sectors such as healthcare, educational institutions, FMCG, business consulting, NGOs, et al.

INteLLectUaL ProPerty

Managing Intellectual Property In the current knowledge-driven economy, where Intellectual property (Ip) is viewed as a primary

ESL Narasimhan, Governor of Telangana and Andhra Pradesh, addressing MIPCON-2016 in Hyderabad

• Assess new techniques and practices to developincubation systems and provide support to existing incubators

• Sharebest practices

• Promotelocaltechnologiestoforeignentrepreneursand facilitate joint cooperation.

MarKetING

Consumer Analytics in an Omni-Channel WorldThe CII National Committee on Marketing conducted a webinar on 20 September to discuss the approach for deploying ‘Consumer Analytics in an Omni-Channel World.’ The session highlighted the importance of consumer analytics as the differentiator to provide a competitive edge, to help reduce the gap between enterprises.

The retail environment has seen a wave of changes over the last decade from the outburst of e-commerce to social media and mobility. Today's evolved consumers are becoming increasingly more fastidious, using the most convenient channel, and expecting a more personalized shopping experience. Omni-channel retail has enabled many businesses to capitalize on new opportunities without compromising their central value propositions.

The session, conducted by Mr prashant yadav, partner and lead, data and Analytics, KpMG India, drew overwhelming response from participants across sectors such as FMCG, healthcare, educational institutions, services, consulting, etc. It explored next-gen shopping, and the active increase in the customers’ choice of shopping channel, and highlighted the importance of consumer analytics as the differentiator to provide a competitive edge for enterprises.

KNoWLeDGe MaNaGeMeNt

The New Face of Knowledge ManagementThe CII National Committee on Knowledge Management conducted a webinar on 21 September on ‘The New Face of Knowledge Management.’

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Communiqué October 2016 | 53

source of value-added growth and earning power for the business, a company’s competitive advantage lies largely in its capacity to manage its strategic Ip resources.

With the release of the National IpR policy and the launch of the ‘Make in India’ campaign, it is important for an organization to develop multi-pronged strategies to promote and nurture innovation, protect inventions through various IpR tools, and commercialize Ips.

The Andhra pradesh Technology development and promotion Centre (ApTdC) of CII organized the 7th

edition of MIpCON 2016, a Conference and Exposition on ‘Managing Ip Assets for Business and Academic Competence’ on 8-9 September in Hyderabad, in partnership with the United States patent & Trademark Office - Global Intellectual property Academy (USpTO-GIpA) and the National Academy of legal Studies and Research (NAlSAR).

Inaugurating the conference, Mr ESl Narasimhan, Governor of Telangana and Andhra pradesh, said Intellectual property should not merely be another tool of commerce but rather a means to promote innovation at the grassroots level.

The conference offered a range of perspectives on the opportunities, challenges, and role of Ip, in the rapidly-evolving marketplace.

IPR Enforcement for Police Officials CII is conducting orientation programs for enforcement agencies like the police, customs, central excise, economic offence wing, etc, all over the country, to build a strong partnership between the rights holders and enforcement agencies, and to strengthen coordination between them. The third session in the series was organized for police officials on 8 September in Mumbai.

Interactive session with police officials on IPR enforcement, in Mumbai

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54 | October 2016 Communiqué

November, and in the World Food Summit, to be held in New delhi in 2017.

Mr Tovar da Silva Nunes, Ambassador of Brazil to India, was also present.

GHaNaDoing Business with GhanaM r B i r e n d e r Singh yadav, High Commiss ioner des igna te o f India to Ghana, described some of the advantages of doing business with Ghana, at an interaction with CII members in New delhi on 5 September.

Ghana offers political stability, an independent judiciary, good resolution of commercial disputes, excellent medical care, and easy availability of electronic visas, he said.

The prevailing International Monetary Fund restrictions are scheduled to conclude by 2017. The country is currently in disinvestment mode and it is a good time to buy stocks and equities, said Mr Singh.

With regard to lines of Credit, priority is being given to solar energy and power generation and transmission, he said, adding that the Government of India is going to focus on completion of the existing lines of Credit and providing quality. He emphasized on the need to encourage projects with backward and forward integration, to ensure their sustainability.

Mr Rajiv Wahi, Member, CII Africa Committee, and CEO- International Business, Escorts ltd, delivered the opening remarks.

IraQ CII Delegation to India Trade ShowCII organized a business delegation to Najaf from 2-4 September, coinciding with the exclusive India

Engaging with the WorldBrazIL

Brazil-India Agribusiness Dialogue

CII organized an interaction with a 12-member agriculture and allied industries delegation from Brazil, led by Mr Blairo Maggi, Minister of Agriculture, livestock and Supply, on 21 September in New delhi. The delegation was in India to explore possibilities to collaborate with Indian companies in the agriculture, food, livestock and dairy sectors.

Addressing the session on ‘New perspectives in Agricultural Trade and Investment,’ Mr Maggi said Brazil is keen to share its proven experience that business, agriculture and biodiversity can go hand-in-hand without impacting the ecosystem. He also sought CII’s support to gain more trade exposure through collaboration.

Mr Rakesh Bharti Mittal, Vice president, CII, and Vice-Chairman, Bharti Enterprises, said that, given the several similarities in agriculture practices in both countries, there is good scope for increasing bilateral trade. Stressing the need for co-operation in the areas of agricultural trade, livestock management, and development of agricultural infrastructure with focus on reduced wastage and use of renewable energy, he also pointed to opportunities in sectors such as energy, science and technology, defence, mining space, education and health.

He invited the Brazilian delegation to participate in the forthcoming CII Agro Tech 2016 in Chandigarh in

Rakesh Bharti Mittal, Vice President, CII, and Vice Chairman, Bharti Group; Blairo Maggi, Minister of Agriculture, Livestock &

Supply, Brazil, and Tovar da Silva Nunes, Ambassador of Brazil to India, at an interaction in New Delhi

Rajiv Wahi, Member, CII Africa Committee, and CEO-International Business, Escorts

Ltd, with Birender Singh Yadav, High Commissioner Designate of India to Ghana,

at an interaction in New Delhi

Communiqué October 2016 | 55

LatIN aMerIca Launch of the CII India Business Forum CII launched the CII India Business Forum (IBF) for the latin American and Caribbean (lAC) region on 28 September in Sao paulo, Brazil. Ms Anita praveen, Joint Secretary for latin America and the Caribbean at the department of Commerce, Ministry of Commerce & Industry, India, formally launched the forum at an India-Brazil Business Session in Sao paulo, organized by the Consulate General of India, and CII.

The CII IBF for the lAC region at present comprises of 25 Indian member companies, and seeks to promote the image of Indian businesses and identify opportunities and challenges for Indian companies in the region. The next IBF meeting will take place in Guadalajara, Mexico on 28 November, on the sidelines of the India-lAC Conclave, being organized by CII in partnership with the Ministry of External Affairs, India, and other bodies.

MaUrItIUs

Ties with MauritiusMs Shobana Kamineni, president designate, CII, and Mr Chandrajit Banerjee, director General, CII, called on Mr pravind Kumar Jugnauth, Minister of Finance & Economic development, Mauritius, and the accompanying delegation, on 13 September in New delhi, during their recent visit to India. The discussions on economic relations between the two countries explored specific areas of cooperation to enhance bilateral trade and investment.

Mr pravind Kumar Jugnauth invited Indian companies to look at investment opportunities especially in infrastructure development, food processing and ocean economy. He also sought Indian expertise for

Ishtiyaque Ahmed, Director, DIPP; Abhilasha Joshi, Consul General of India in Sao Paulo; Elias Haddad, Vice President, FIESP;

Anita Praveen, Joint Secretary, Department of Commerce; KV Nagi Reddy, Director, Department of Commerce, and

Jitendra Rawat, Consul (Commerce), Consulate General of India in Sao Paulo, at the launch of the CII IBF for the LAC region, in Sao Paulo

Trade Show organized by the Indian Embassy in Iraq, in partnership with the Governorate of Najaf and the Chamber of Commerce of Najaf, to present the emerging business opportunities in Iraq. The trade show was organized to encourage Indian companies to enter the Iraqi market through Najaf, due to the safe environment and promising investment opportunities the city offers, said Ambassador George Raju, Ambassador of India to Iraq. Indian companies representing food products, clothes and fabrics, construction materials, electric systems, technical and safety equipment, oil, gas and diesel engines, generators and water treatment systems, exhibited their products.

The event helped bridge the information gap and build linkages between businessmen of the two countries. The Imam of the Holy Imam Ali Shrine, the Governor of Najaf, and officials from the Iraqi Ministries of Trade, Industry and Minerals, and Agriculture, as well as the diwaniyah Investment Commission, interacted with the Indian delegates.

The CII delegation also participated in a Buyer-Seller meet with the Najaf Chamber of Commerce, which was attended by businessmen from the neighboring cities of Karbala and Baghdad, and members of the Federation of Iraqi Chambers of Commerce, and the Baghdad Chamber of Commerce.

Bilateral trade between Iraq and India increased to $11 billion in 2015-16, of which more than $10 billion was Iraqi oil sales to India, making Iraq one of India’s largest suppliers of crude oil.

After decades of being a centralized economy, Iraq is now transitioning to a market-driven economy with enormous growth potential. Apart from a cost base which is the most competitive in the region, Iraq is offering generous benefits such as a 10-year moratorium on taxation, and a 3-year moratorium on import fees for equipment, to attract foreign investment.

Ambassador George Raju, Ambassador of India to Iraq; with Walid Habib Al Moswee, Deputy Minister of Trade, Iraq, and

other leaders, at the India Trade Show in Najaf

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56 | October 2016 Communiqué

skill development and pharma and healthcare. Indian companies could use Mauritius as a base for expanding into the African continent, he suggested.

Mr Banerjee said that CII would encourage its members to take advantage of the FTA and use Mauritius as a base to enhance their presence in Africa. CII will consider taking a CEOs delegation to Mauritius next year to explore new business opportunities, he said, adding that CII’s cluster approach could also benefit SMEs in Mauritius.

In Mumbai, CII, in collaboration with the Board of Investment of Mauritius, organized a discussion on ‘Mauritius: your preferred Regional Investment & Business platform.’ The forum focused on various opportunities in Mauritius, and presented te island nation as a platform for Africa.

Mauritius holds the distinction of being the largest single investor in India. Indigenous Mauritian companies have invested close to $ 300 million between January 2003 and July 2016 in India. India too has made significant investments in Mauritius with eight Indian public sector enterprises currently functioning in the country.

Mr pravind Kumar Jugnauth, in his keynote address, called on Indian companies to take advantage of the new industrial parks coming up in Mauritius. Smart cities and port development are the current focus area in the country, he said.

Mr Subhash desai, Minister of Industries, Maharashtra, inviting Mauritius to do business in Maharashtra, said simplified business procedures and added reforms have made doing business easier.

Five key areas where India and Mauritius could strengthen their bilateral economic cooperation include Information Technology, agro and food processing, healthcare and pharmaceuticals, infrastructure and skill development, suggested Mr Ninad Karpe, deputy Chairman, CII Western Region, and Md, Aptech ltd.

ENGAGING WITH THE WORld

Shobana Kamineni, President Designate, CII, and Executive Vice-Chairperson, Apollo Hospitals Enterprise Ltd, interacting

with Pravind Kumar Jugnauth, Minister of Finance & Economic Development, Mauritius, during a call-on meeting in New Delhi,

as Chandrajit Banerjee, Director General, CII, looks on

NIGerIa Business Delegation to NigeriaCII organized a business delegation to Nigeria coinciding with the visit of Mr Hamid Ansari, Vice president of India, from 26–30 September.

during the visit, the India-Nigeria Joint Business Forum was organized jointly by the High Commission of India, CII, and other organizations, on 27 September, in Abuja. More than 200 representatives of the governments and business communities of both countries attended the event.

Nigeria is an important partner for India’s energy security requirements, said dr Hamid Ansari. India’s vast consumer market, youthful and skilled human resources and expertise in IT, coupled with Nigeria’s natural resources, youthful population and strategic location provide a platform for enhanced economic engagement, he said, urging both sides to harness the complementarities to attract investments. Over 100 Indian companies have made Nigeria their base to operate in diverse sectors in West Africa, employing a large number of Nigerians. It is estimated that Indian investments have exceeded $10 billion so far, and another $5 billion is committed, in diverse sectors such as communications, power, pharmaceuticals, healthcare, automotive sector and oil, among others, said dr Ansari.

prof yemi Osinbajo, Vice president of Nigeria, said there is considerable potential for expanding trade in automotive components, automobiles, engineering products, IT, pharmaceuticals, bio-technology and healthcare.

The CII delegation later had meetings with Governors and senior officials of various states of Nigeria, to understand the investment policies and the various sectoral opportunities. In a meeting with Mr Muhammad M Bello, Minister, Federal Capital Territory, the city plan and projects with scope for cooperation were discussed.

The delegation then traveled to lagos, the economic capital of Nigeria. perchstone & Graeys, a leading commercial law firm, organized a meeting with Mr Toye Arulogun, Commissioner of Oyo State Government, Ministry of Information, Culture & Tourism, and members of the lagos business community. The delegation also met with senior officials of the lagos State Government.

In meetings with the members of the lagos Chamber of Commerce and Industry, and the Nigeria-India Chamber of Commerce and Industry, the Nigerian side presented investment opportunities to Indian investors, with the focus on agriculture, food processing, healthcare services, pharma, infrastructure, ICT and skill development training.

Communiqué October 2016 | 57

Dr M Hamid Ansari, Vice President of India, addressing the India-Nigeria Business Forum in Abuja. Also seen: B N Reddy, High Commissioner of India to Nigeria; Ejinkeonye Chidi Anthony,

President, Abuja Chamber of Commerce & Industry; Yemi Osinbajo, Vice President of Nigeria, and Behram R Sabawala, Leader of the CII Business Delegation, and Chief Financial Officer, Tata Africa

ENGAGING WITH THE WORld

industry leaders and CEOs of top tech companies in the US West Coast from 12-16 September, to promote the Vibrant Gujarat Investor Summit scheduled for January 2017.

CII organized a roadshow in San Francisco which was addressed by the leader of the delegation, Mr dhananjay dwivedi, Secretary, department of Science & Technology, Gujarat. The delegation also met with notable companies including

Microsoft, Amazon, and Applied Materials, in San Francisco, Seattle and San diego.

CII Partners with Momentum Jharkhand Mr Raghubar das, Chief Minister of Jharkhand, led a delegation of senior officials from the State on a USA investment promotion tour facilitated by CII from 26-30 September.

The delegates began the tour in las Vegas, as participants in MINEXpO 2016, then traveled to San Francisco to visit companies like Hp, Cisco, and

Oracle, to provide information about Jharkhand's progressive business and investment climate. The final stop was New york City, where CII hosted an investor roadshow, in partnership with USIBC. The roadshow was followed by one-on-one meetings with top US companies, including the Clutch Group, Medtronic, Gilead Sciences, etc., as well as talks with NGOs, university partners, and diaspora groups. The Consulate General of India in New york hosted a reception to enable the Chief Minister and his delegation to interact with hundreds of Indian-Americans.

The visit was part of the effort to attract potential investors and companies to participate in the Global Investors Meet to be held in Ranchi in February next year. during their tour, the delegation also sought to learn best practices in various sectors, to adopt them in Jharkhand.

The delegation also had a meeting with Mr B N Reddy, High Commissioner of India to Nigeria, who offered the support of the High Commission for any follow-up meetings.

PerU Interactive Session with Student Delegation

CII organized an interactive session with a 10-member delegation from the ESAN Business School, a premier business school of peru, on 30 September in New delhi.

With peru aiming to increase current bilateral trade with India from $1.5 billion to $2 billion, and holding the third position in the most competitive economy in South America, the session discussed the issues and commonalities between the two countries. The topics addressed included the type of energy usage and its carbon impact, scope of IT, growth aspects with respect to demographic dividend and skill-sets, economic comparison with China, the importance of the Goods and Services Tax (GST), movement of population between industries, and income generation.

UNIteD states oF aMerIca Vibrant Gujarat Outreach SessionCII partnered with the State of Gujarat to bring a high-level government and business delegation to meet with

CII Gujarat delegation at the Amazon Headquarters, in Seattle, USA

Delegates from the ESAN Business School, Peru, at an interaction with CII representatives in New Delhi

Raghubar Das, Chief Minister of

Jharkhand

58 | October 2016 Communiqué

The fourth India-China Strategic Economic dialogue (SEd) comes after a gap of more than two years.

China’s ‘new normal’ of 6.5% Gdp growth rate has been set as an objective in the 13th Five year plan. While India has emerged as the world’s fastest growing large economy, the mechanics of bilateral economic relations have shifted. Over the last decade or so, India-China trade has soared to over $70 billion, but its contours are now recognized as ‘unsustainable’.

The third SEd took up a trade deficit of $36 billion, or 26% of India’s total trade deficit. The fourth SEd will need to factor in an adverse bilateral trade balance of $53 billion, 45% of the Indian aggregate. Getting this figure to a more sustainable level would be a priority for the dialogue.

Emerging SceneAn encouraging investment scenario is emerging. Although official FdI from China stands at a cumulative $1.4 billion till March 2016, new announcements of large investments by Chinese companies in India are a regular feature. Sectors such as pharma, electronics, e-commerce, start-ups, and so on are attracting funds from China, and companies like Alibaba, Xiaomi and lenovo are now household names in India.

At a recent India-China’s CEOs’ dialogue organized by CII, the excitement was palpable. Several Chinese companies expressed the desire to work with Indian partners, while Indian participants talked about growing opportunities in a changing India with programs such as Make in India, Housing for All, Smart Cities, and digital India.

At the same time, business leaders spoke about challenges to bilateral trade and investment relations. Financing options, work visas, information gaps and cultural diversity were some of the factors thought

to be inhibiting economic cooperation. The suggested solutions pertained to building the ‘India brand’ in China, enhancing people-to-people links, regular business interactions, and investor facilitation.

What MattersOur recommendations are built around several strategies: attract more Chinese FdI, engage at the State and provincial level, and slot India into global value chains dominated by China. The SEd could consider platforms for these with the participation of industry from both sides.

In the manufacturing space, rising Chinese overseas FdI flows should be channelized to low-cost production centers in India for sectors such as capital goods and machinery, core infrastructure, and consumer products. In sectors such as pharmaceuticals, electrical equipment, and auto components, our exports to China can be stepped up, provided market access issues are resolved.

Cooperation in the services sector has hardly been explored. IT services would benefit from access to Chinese state-owned enterprises and easier work visas for Indian software professionals. Tourism, films and financial services have high potential.

Chinese sovereign wealth funds could be invited to participate in long-term infrastructure assets in India. However, regulations are a deterrent. Chinese companies should be encouraged to explore FTAs.

At the same time, Indian companies should look at opportunities in China’s provinces. The forum of state and provincial leaders set up in 2015 could help in this effort. Building on the gains of the past, the SEd has the potential to reset partnerships between Indian and Chinese industry and enhance cooperation at the global, regional, national and sub-national levels for mutual benefit.

expanding India-china economic ties

This article by Chandrajit Banerjee, director General, CII, was first published in the Hindu Businessline on 5 October.

The 4th India-China Strategic Economic dialogue (SEd) between India's NITI Aayog and China's National development and Reform Commission (NdRC) was held in New delhi on 6-7 October. CII interacted with Mr Xu Shaoshi, Chairman, NdRC, at a special dinner meeting. This article by Chandrajit Banerjee was printed in advance of the SEd.

ENGAGING WITH THE WORld

Communiqué October 2016 | 59

Regional review

EASTERN REGIONESafety Symposium & Exposition

The Safety Symposium & Exposition in Kolkata on 8-9 September, attended by more than 300 CEOs, plant heads, personnel in charge of safety, and safety technology providers, deliberated on various aspects of occupational health and safety. The focus was on how smart technologies are making smart safety a reality, with consensus that a strong safety mechanism not only reduces the risks of injuries and deaths but also makes a great business sense.

Mr Rahul Guha, director General, directorate General of Mines Safety, disclosed that the Central Government is working on a plan to amend the Coal Mines Regulation, Metalliferous Mines Regulations, Oil Mines Regulations and the Mines Act.

Mr Arnab Roy, principal Secretary, Fire and Emergency Services, West Bengal, expressing concern about the vulnerability of older buildings in Kolkata, said the State Government is trying to evolve new technologies for in-built safety mechanisms.

A CII report titled ‘Changing Safety Culture through Technology Adoption’ was released at the event.

BAlCO received the coveted CII Safety Health and Environment (SHE) Award in the large-scale manufacturing category (over 3,000 employees), while the winner in the same category with 3000 or less employees was Jamshedpur Continuous Annealing &

processing Co pvt ltd. The runners-up were ITC ltd, India Tobacco division (Kidderpore), and Tata Sponge Iron ltd.

9th Banking Colloquiumleading bankers, fund managers and top executives f rom f inanc ia l institutions shared views on managing the expectations o f n e w - a g e c u s t o m e r s , r e g u l a t o r y requirements, and the challenges of new competitors a n d s h i f t i n g economics, at the 9th Banking Colloquium in Kolkata on 16 September.

Mr Rajnish Kumar, Md, State Bank of India, dr Achintan Bhattacharya, director, National Institute of Bank Management, Mr C S Ghosh, Chairman, CII Economic Affairs, Finance and Taxation Sub-committee, and Md & CEO, Bandhan Bank, Mr Subrat das, post Master General, India post, Ms Ruchita Aggarwal, Vice president & Business Head, paytm payments Bank, and Mr dinabandhu Mohapatra, Executive director, Canara Bank, among others, shared their views. A ‘pulse Survey’ conducted among the audience, revealed that strategic partnerships would be the most important lever for growth in Vision 2020.

A CII-deloitte report titled ‘Banking on the Future: Vision 2020’ unveiled at the event suggests that digitization, consolidation and innovation will drive the growth of banks.

Jharkhand Investment Roadshow CII partnered the Jharkhand Government to hold an investment promotion roadshow in Mumbai on 20 September to promote the Jharkhand: Global Investors’ Summit 2017.

Mr Raghubar das, Chief Minister of Jharkhand, pitching his State as the gateway to ‘Make in India,’ announced six new

Rahul Guha, Director General, Directorate General of Mines Safety; Arnab Roy, Principal Secretary, Fire & Emergency Services, West Bengal; and Sandeep Fuller, Chairman, CII (ER) Safety Task Force, and Executive Director & CEO, Texmaco Rail & Engineering Ltd,

at the Safety Symposium in Kolkata

Rajnish Kumar, MD, SBI; C S Ghosh, Chairman, CII (ER) Economic Affairs,

Finance and Taxation Sub-committee, and MD & CEO, Bandhan Bank Ltd; and

P R Ramesh, Chairman, Deloitte Haskins & Sells; at the Banking Colloquium in Kolkata

60 | October 2016 Communiqué

policies aimed at diversifying the State’s industr ia l landscape. A number of MoUs in sectors such as multispecialty healthcare and medical education, skills development and technical education, textiles, tourism, and e-governance were signed. Senior ministers and State Government officials, as well as industry leaders including Mr T V Narendran, Chairman, CII Eastern Region, and Md, Tata Steel, accompanied the Chief Minister.

Healthcare Eastdr R S Shukla, principal Secretary, Health & Family Welfare, West Bengal, addressed the 11th edition of Healthcare East, held in Kolkata on 23 September, with the theme, ‘Striving for Self-Sufficiency through Capacity Building in Healthcare.’

Conference on Mining Sector Contribution The Odisha Government made a strong pitch for investments in the downstream sector at a conference on ‘Increasing Mining Sector Contribution to Gdp’ in Bhubaneswar on 28 September. The State Government has initiated key reforms to ensure ease of mining, said Mr prafulla Kumar Mallick, Minister of Steel and Mines, Odisha. It is the first to auction a large iron ore mine, and five more iron ore mines have been selected for auction, he said.

Mr R K Sharma, principal Secretary, Steel & Mines, Odisha, stressed the need for an easy and efficient clearance system. Skill development is important, so is effective and efficient logistics, he added.

Mr Sanjeev Chopra, principal Secretary, Industries, Odisha, said the State Government is working on a plan to boost exploration activities. Odisha is also working on attracting investments, he said, with the Make in

Odisha Conclave to be held shortly, with CII as the National partner.

Mr T V Narendran, Chairman, CII (ER) and Md, Tata Steel, said the growth of mining has a positive impact on downstream industries such as power generation, steel making, aluminium, auto, chemicals, cement and infrastructure. He underscored the need for strong logistics infrastructure, including key rail links and coastal shipping for cost- effective mineral transportation.

Realty+ ConclaveCII’s Realty+ Conclave 2016 in Kolkata on 29 September saw dr Amit Mitra, Minister for Commerce and Industry, Finance and Excise, West Bengal, make an offer to private developers that building a township over more than 50 acres, would allow them moderation of the existing land Ceiling Act. However, 25% of the land must be earmarked for economically weaker sections, and 25% for non-residential purposes such hospitals, schools, parks and roads, he said.

Dr Dharminder Nagar, MD & CEO, Paras Hospitals; Dr Sunil Thomas Chandy, Director, CMC, Vellore; Sanjay Prasad, Chairman, CII (ER) Healthcare Sub-committee, and

President, Mission of Mercy Hospital & Research Centre; Chandrima Bhattacharya, Chairperson, West Bengal Medical Services Corporation, Dr R S Shukla, Principal

Secretary, Health & Family Welfare, West Bengal; and Dr Rupali Basu, Vice Chairperson, CII West Bengal, and President & CEO (East), Apollo Hospitals Group, India,

at Healthcare East, in Kolkata

Sanjay Pattanaik, Chairman, CII Odisha, and Executive Director, Tata Sponge Iron Ltd; Sanjeev Chopra, Principal Secretary, Industries, Odisha, and Chairman, Odisha Mining Corporation; T V Narendran,

Chairman, CII (ER) and MD, Tata Steel Ltd; Prafulla Kumar Mallik, Minister of Steel & Mines, Odisha, and R K Sharma, Principal Secretary, Steel & Mines, Odisha, at the Conference on Mining in Bhubaneswar

Santhosh Kumar, CEO, Operations, JLL; Nandu Belani, Director, Belani Housing Development Ltd; Dr Amit Mitra, Minister of

Commerce and Industry, Finance and Excise, West Bengal; and Sushil Mohta, MD, Merlin Group, at the Realty+ Conclave in Kolkata

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Communiqué October 2016 | 61

REGIONAl REVIEW

Session on Health & NutritionCII’s Indian Women Network (North Eastern Region (NER), organized a Session on Health and Nutrition for about 80 working women belonging to Self-Help Groups (SHGs) at pyranga village, near Boko, in Assam, on 3 September. Besides tips on nutrition and health, cleanliness and sanitation, the session, held in association with Om Shanti (peace Trust) and supported by the Aruna Memorial Hospital and the Indian Institute of Entrepreneurship (IIE), included the distribution of vitamin and iron tablets to the participants.

Empowering Women EntrepreneursCII and its women wing, the Indian Women Network (NER), teamed up with the Bharatiya yuva Shakti Trust (ByST), the Employment Generation Mission, and the Government of Assam, to organize a session on ‘Empowering Women Entrepreneurs – Inspiring, Sharing, Networking’ in Guwahati on 16 September.

While Mr prafulla Kr Saikia, Additional director, Commissionerate of Industries & Commerce, Assam,

shared the initiatives and measures the State is taking to promote entrepreneurship, Mr J K Mahanta, Chief General Manager, National Small Industries Corporation (NSIC), described the schemes launched for women entrepreneurs in the region. Several women entrepreneurs shared their experiences.

North East Infra Dialogue

More than 100 stakeholders gathered to discuss how to build a roadmap to create robust infrastructure in the North East, at the North East Infrastructure dialogue in Guwahati on 30 September.

Mr parimal Suklabaidya, Minister of pWd (Roads & Buildings, NH) Assam, said top-grade physical infrastructure and easy connectivity would chart the North East’s path to progress, calling for the latest technologies and a new mindset for all. Focused and special policies are the key to attracting a greater volume of investments in infrastructure in the North East, he said.

Mr C K das, Member, North Eastern Council, Government of India, spoke of the need for time-bound projects. Although land acquisition is a major issue, all stakeholders need to work with a unity of purpose to make sure the North East gets seamless connectivity,

he said.

Mr Abhijit Barooah, Co-Chairman, CII North East Council, and Md, premier Cryogenics ltd, said faster implementation of infrastructure projects would not only spur economic development in the region, but will also be a major catalyst in realizing the Centre’s Act East policy.

NORTH EAST REGIONNE

Session on Health & Nutrition in Pyranga village, Assam

Session on Empowering Women Entrepreneurs in Guwahati

Parimal Suklabaidya, Minister of PWD (Roads and Buildings, NH), Assam; S K Barua, Chairman, CII Assam, and Director, Finance, Numaligarh Refinery Ltd;

C K Das, Member, North Eastern Council, Government of India; and Abhijit Barooah, Co-Chairman, CII North East Council, and MD, Premier Cryogenics Ltd,

at the North East Infra Dialogue in Guwahati

62 | October 2016 Communiqué

REGIONAl REVIEW

NORTHERN REGIONN

CII Invest North 2016Seven States of North India showcased their prowess as the most desired investment destinations at the 5th edition of Invest North 2016 organized by CII Northern Region in New delhi from 22-23 September, in partnership with the department of Industrial policy and promotion (dIpp) and the Ministry of Commerce and Industry.

“At a time when world economies are still reviving, India is being recognized as a shining star globally,” said Ms Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce and Industry, inaugurating the event. public investment in infrastructure creation, be it roads, highways, or waterways networks, has gone up significantly over the last two years. This will help the landlocked northern states, she said.

Mr Ramesh Abhishek, Secretary, dIpp, Ministry of Commerce and Industry, said the dIpp is committed to positioning India in the top 50 countries in the World Bank’s

Ease of doing Business ranking by 2018.

In addition to facilitating investments in the northern States, Invest North would also facilitate greater regional cooperation and collaboration, said Mr Malvinder Mohan Singh, Chairman, CII Invest North 2016, and Executive Chairman, Fortis Healthcare ltd. As action and initiatives on the ground rest with the States, it is imperative to focus on opportunities that lie in the States,

said Ms Rumjhum Chatterjee, Chairperson, CII Northern Region, and Group Md, Feedback Infra pvt ltd.

A CII report ‘Investment Climate – A Report on Northern States of India’ was released on the occasion.

Around 90 one-to-one meetings of investors and industry members with senior officials of the State Governments of Haryana, Himachal pradesh, punjab, Jammu & Kashmir, Rajasthan and Uttarakhand were held during Invest North 2016. In addition, over 200 B2B meetings among corporate houses were also held on the sidelines of the event.

‘With sustained Government efforts, Uttarakhand’s per capita income is now double the national per capita income. I seek substantive suggestions from Industry on how the State Government can improve the industrial climate.’

Harish rawat, Chief Minister of Uttarakhand

‘The Government of delhi proposes to do away with the minimum threshold experience limit to register as government contractor, which will be a big boost to start-ups. In the initial stage this is being done

Richard Rekhy, Co-Chairman, CII Invest North 2016, and CEO, KPMG India; Sumant Sinha, Deputy Chairman, CII (NR) and Chairman and CEO, ReNew Power Ventures Pvt Ltd; Malvinder Mohan Singh, Chairman, CII Invest North 2016, and Executive Chairman, Fortis Healthcare Ltd;

Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce & Industry; Ramesh Abhishek, Secretary, DIPP; and Rumjhum Chatterjee, Chairperson, CII (NR), and Group MD, Feedback Infra Pvt Ltd, at CII Invest North 2016 in New Delhi

Harish Rawat, Chief Minister of

Uttarakhand

for civic work, and will later be expanded to other sectors'.The delhi Government is also working towards making the process for approval and sanctions online. We have done away with physical submission of T1 & T2 forms. We have also asked the traders to share details regarding the vehicle registration number and details of the commodities through SMS, for easy entry of goods into the city.”

manish Sisodia, deputy Chief Minister of delhi

FroM tHe PLeNary state sessIoNs

Communiqué October 2016 | 63

‘The Government is developing industrial infrastructure, including the expansion of existing industrial estates and establishing new industrial estates in the State for which the process of creating a land bank is underway. We are working towards improving the competitiveness and capabilities of local entrepreneurs and promoting structural transformation in the industrial sector.’

chander Parkash Ganga, Minister of Industries & Commerce, Jammu and Kashmir

‘The Himachal pradesh Government is committed to providing enabling policy support in addition to the best-in-class physical and social infrastructure required for industrial growth. Industrialization has been a thrust sector. The State Government welcomes support and inputs to make Himachal a dream destination for investors.’

mukesh agnihotri, Minister of Industries, Himachal pradesh

‘Reforms undertaken by the State, including setting up the first punjab Bureau of Investment promotion, providing time-bound clearances, simplification of procedures and regulatory compliances, deemed approvals, provisioning of adequate power and land for industry, and other policy interventions, will help accelerate the pace of industrialization and improve the overall fiscal scenario.’

madan mohan mittal, Minister of Industries, Commerce, Technical Education & Industrial

Training, punjab

‘provision has been made for giving all clearances under a single roof by providing facilities such as self-certification and third-party inspection. The suggestions received from entrepreneurs from time-to-time are also being incorporated in sectoral policies.’

devender Singh, principal Secretary, Industries, Haryana

‘The Rajasthan Investment promotion Scheme 2014, which is an overarching fiscal incentives policy for the State, has all the policy ingredients required to make the State a preferred investment destination. We are still open for suggestions to make it even more facilitative.’Vaibhav Galriya, Commissioner, Investment &

NRI, and Md, RIICO, Rajasthan

FroM tHe sectoraL PLeNarIes

Renewable Energy ‘The present situation of the Indian power sector is that of a classical paradox. On one hand we have more than 200 million people without access to power and on the other there is idle capacity. One of the significant challenges impacting the sector is the financial health of distribution companies (dISCOMS) which are neither able to buy power nor to make timely payments to the generation companies.’

anirudh Tewari, principal Secretary, Industries & Commerce and Renewable Energy, punjab

‘Competitive federalism is driving the States to push reforms and create an enabling policy and regulatory framework to attract investments.’

Sumant Sinha, deputy Chairman, CII Northern Region, and Chairman & CEO,

ReNew power Ventures

Defence ‘despite having five out of seven Indian Army Commands and two Air Force Commands, the Northern Region still does not have many defence and aerospace companies. There is good scope for domestic as well as foreign players in the sector to explore business possibilities.’

dr r K Tyagi, president Elect, Aeronautical Society of India, and

Former Chairman, Hindustan Aeronautics ltd

Global Engagement‘India is very important for the European Union, considering that it is the largest democracy and also the second-largest populous region. The Government has given a new impetus to the economy by reaching out to new partners. A number of reform processes have been introduced or are being discussed. The business environment is also becoming better.’

Tomasz Kozlowski, Ambassador of the European Union to India

‘In many ways, India resembles South Korea in the 1970s. The Indian economy is being largely fuelled by the rising aspirations of the ordinary people, especially the youth.’

cho Hyun, Ambassador of Republic of Korea to India

VREGIONAl REVIEW

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Communiqué October 2016 | 65

SOUTHERN REGIONS

REGIONAl REVIEW

CII Connect 2016

CII, jointly with the Government of Tamil Nadu organised the 15th edition of CONNECT 2016, a premier annual conference and exhibition on Information and Communication Technology on 27-28 September in Chennai. The theme, ‘Building the digital State: Fostering the Ecosystem’ was framed in line with the prime Minister’s vision of building a ‘digital India,’ with the added objective to showcase Tamil Nadu’s potential in the IT and ICT space.

The highlights of CONNECT 2016 included power-packed plenary sessions with leading speakers from Government,industryandacademia;Hackathon;aB2Bexhibition; new product launches; B2Gmeetings, andthe CONNECT 2016 Awards.

“Tamil Nadu continues to be a destination of choice for the IT/ITeS sector in India. It has effectively leverages the skills of its human resources to achieve this distinction," said dr M Manikandan, Minister of Information Technology, Tamil Nadu, who was the Chief Guest at the Valedictory Session. “The State will aim to bridge the urban-rural digital divide by providing high speed broadband connectivity to every village. The common service centre will provide easy interface between the citizen and the Government,” he added.

“The evolution of IT has put India on the global map. Tamil Nadu has always been a key contributor both in terms of entrepreneurship and supplying talent, thanks to the quality education system we have,” said Mr Kris Gopalakrishnan, past president, CII, and Co-Founder, Infosys ltd.

Dr M Manikandan, Minister of IT, Tamil Nadu, (center) at ‘CII Connect 2016, in Chennai

dr M Manikandan presented the CII Connect Awards 2016 to industry leaders who have made outstanding contribution for the development of ICT sector in Tamil Nadu.

Conference on Industrial FlooringCII organized the first-of-its-kind in the country conference on Industrial and Commercial Flooring in Chennai on 27-28 September, to highlight the emergence of new technologies for providing durable flooring solutions across the spectrum. India is a key market for the `4000 crore industrial and commercial flooring industry, which is likely to grow around 20% over the next decade.

Kerala Finance Summit The Kerala Finance Summit, held on 29 September in Kochi, deliberated on the growth of the financial sector in Kerala, impact of GST, and rising NpAs.

Mr Mr K V Shaji, Chairman, Kerala Gramin Bank, in his special address, said development through innovative methods would create more entrepreneurs in the State. This will have a multiplier effect leading to more lending from banks and increase in consumption and further increase in investment, he said.

At the Industrial and Commercial Flooring Conference in Chennai

At the Kerala Finance Summit, in Kochi

66 | October 2016 Communiqué

Communiqué October 2016 | 67

W WESTERN REGION

HR ConclaveHR professionals came together at the 3rd CII HR Conclave themed ‘HR – delivering Value to Business’ in Ahmedabad on 16 September, to deliberate on human resource management and development strategy. Aligning HR to business strategies by moulding the various business functions towards achieving organizational goals, the conclave also discussed how HR leaders can deliver direct business value by focusing on different aspects of the business like bringing insight to investment decisions, building future value, bridging the people visibility gap, removing barriers and optimizing performance. The conclave also had discussions on steps required to ensure success in a fast-changing business environment.

Smart Manufacturing Conclave 2016The 1st edition of the Smart Manufacturing Conclave, held on 13 September in pune, discussed trends and opportunities in the manufacturing sector with the emergence of concepts such as Industry 4.0, Smart Manufacturing, digital Technology, etc, wherein intelligent, connected devices are radically reshaping companies and competition, and how these could be adopted in the Indian context of manufacturing.

A survey report released during the event gave insights on the status, trends, major challenges and opportunities for the adoption of smart manufacturing in India. The survey also looked at the awareness levels on advanced technologies like cloud computing, mobile technology applications and Industrial Internet of Things (IIoT).

Business of Sports & EntertainmentCII Western Region organized the 1st edition of the

Summit on Business of Sports and Entertainment in Mumbai on 21 September.

With participation from eminent sports and industry representatives, it featured discussions on corporatization in sports, developing next-gen sportspersons, and the business of leagues. A report on ‘The Business of Sports’ was launched during the Summit.

“Indian sports have now matured. Gone are the days of amateur sports. We now have a high level of professionalism in our games,” observed Mr praful patel, president, All India Football Federation, who was the Chief Guest.

Sports not only provides active branding and marketing opportunities to investors, but also creates value for fans. The creation of various sporting leagues in India has invited tremendous support from the corporate sector, said Mr Shrinivas dempo, Chairman, CII Summit on Business of Sports and Entertainment, and CMd, dempo Shipbuilding & Engineering.

Mr Jay Mehta, Group director, Mehta Group, Ipl Franchise Owner, Kolkata Knightriders, said sports is serious business. One must do the valuations extremely carefully and choose the correct people and partners to make a winning team.

Mr Ashu Jindal, CEO, IMG Reliance; Mr KaranAhluwalia, president & Country Head, Media & Entertainment, luxury & Sports,YESBank;MrVirenRasquinha, CEO, Olympic Gold Quest; Mr Sunandodhar, CEO I-league, All India Football Federation, and Mr Venky Mysore, CEO, Kolkata Knightriders, were among others , also present.Smart Manufacturing Conclave 2016 in Pune

At the CII Summit on Business of Sports and Entertainment, in Mumbai

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68 | October 2016 Communiqué

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Edited, printed and published by:Chandrajit Banerjee, Director General, CII, on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi-110003 Tel: 91-11-24629994-7 Fax: 91-11-24626149 Email: [email protected] Website: www.cii.inPrinted at Lustra Print Process Pvt. Ltd., K No. 51/21, Rohad, Bahadurgarh-124507 (Haryana) Registration No. 34541/79 Postal date on 20th and 21st Total pages 68+Covers