CII Communique February 2017

Edited, printed and published by Chandrajit Banerjee, Director General, CII, on behalf of Confederation of Indian Industry fromThe Mantosh Sondhi Centre,
23, Institutional Area, Lodi Road, New Delhi-110003, Tel: 91-11-24629994-7, Fax: 91-11-24626149, Email: info@cii.in, Website: www.cii.in
Printed at Lustra Print Process Pvt. Ltd., K No. 51/21, Rohad, Bahadurgarh (Haryana), PIN Code-124507 Registration No. 34541/79
Journal of the Confederation of Indian Industry
We welcome your feedback and suggestions. Do write to us at communique@cii.in
Contents Volume 39 No. 02 February 2017
cover story
07 Building Partnerships for Sustained Growth
The Partnership Summit celebrated the
rise of India as a global growth engine,
while outlining a roadmap of the nation's
‘global integration strategy’ in the new
world economic order.
Our cover story showcases the
mega-event which witnessed the active
engagement and collaboration of India
within, and with the rest of the world.
spotlight
03 India@75 National Volunteering Week
focus
17 Showcasing Engineering and Technological Excellence
mindspace
21 Union Budget 2017-18
Societal Interface
34 Towards Inclusion of Persons with Disabilities
engaging with the world
37 CII@DAVOS 2017
plus...
Building Capacity
portfolio for
excellence
REGIONAL REVIEW
... AND MORE

Communiqué February 2017 | 3
spotlight
T
he India@75 Foundation,
an initiative symbolizing the
developmental agenda of CII,
organized the 4th
edition of the
National Volunteering Week (NVW)
from 18 to 24 January.
The Week celebrated volunteerism
with more than 1700 activities across
72 cities and 1401 villages. India@75
directly, and through partners,
reached out to approximately 13
lakh people, mobilizing 1.5 lakh
volunteers, and generated 2.5 lakh
volunteering hours.
In the coming year, the target is
to reach out to 50,000 villages and
100 cities.
India@75 and CII have been working
towards the vision of creating an
inclusive, developed India by 2022.
The vision elements comprise skills,
education, economy, urbanization
and environmental sustainability,
agriculture and health, innovation,
moral leadership, and more.
Technology and volunteerism have
been identified as the key drivers
cutting across the vision elements,
to make the exercise participative
and collaborative. These drivers
would also enable outreach and
scale within the time constraints, to
achieve the envisioned objectives by
the completion of 75 years of India's
Independence.
India@75
National
Volunteering
Week

4 | February 2017 Communiqué
spotlight
CII and India@75 have been celebrating Volunteering
Week since January 2014 in an endeavor to aggregate the
on-going efforts of the stakeholders in the volunteering
space, and facilitate synergy and alignment to augment
Government initiatives, by ensuring impactful delivery of
the various social developmental initiatives and schemes
at the grass roots.
The week-long activities comprised programs for meal
distribution, road safety, swachhta abhiyaan, tree
plantation, health and hygiene, etc, with an emphasis
on education and functional literacy.
Individuals, community organizations, youth associations,
homemakers, and retired and active professionals
representing all segments of society, pan-India, engaged
in these programs.Corporate and non-profit partners
enabled the outreach and execution of activities even
in far-flung remote areas.
Public consensus is being generated for the declaration
of an Indian National Volunteer Day /Week similar to
the UN Volunteer Day on 5 December, and National
Youth Day on 12 January. Also, traction is building
up emphasizing the need for a national policy on
volunteerism with a structured eco-system. This would
enable the engagement of Indians of different ages,
genders and professions, as well as the stakeholders,
for impactful and tangible delivery, contributing
towards nation-building efforts through participative
and collaborative action by the citizens.
India@75 is also working on a niche area of volunteering
under its Pro Bono initiative; wherein it connects
skilled corporate volunteers to non-profits through an
IT platform, for building their intrinsic capacities. This
endeavor has the larger objective of creating long term
sustainable relationships between corporates and non-
profits, thus moving beyond mere funding.
The week-long celebrations of NVW 2017 concluded
with a conclave on ‘Volunteerism: Key Enabler for Nation
Building’ in New Delhi on 24 January. In his keynote
address, Mr Vijay Goel, Minister of State (Independent
Charge) of Youth Affairs and Sports, while welcoming
the National Volunteering Week initiative, urged India@75
to “try and sustain volunteering beyond the National
Volunteering Week and undertake activities that would
have a long term impact on the ground.”
Distinguished panelists like Mr Shankar Venkateshwaran,
Chief, Tata Sustainability, Mr Anshu Gupta, Founder,
Goonj, Dr DineshTyagi, CEO, CSC E-Governance Services,
Mr Shrikant Sinha, CEO, NASSCOM Foundation, and
Mr Nishant Pandey, Country Director, American India
Foundation, amongst others, called for a structured
eco-system for volunteering. The event was attended by
various NGOs, corporates and young volunteers.

A
s countries across the
world are gearing up
to keep pace with the
shifting dynamics in the world
order, innovation and adaptation
are setting the tone for ‘NeoGen’
prescriptions for successful and
sustainable partnerships.
Global headwinds notwithstanding,
developing Asia continues to
contribute 60% of world growth,
and is steadily becoming the
crucible for innovative economic
and geopolitical partnerships. China
and India, two of the region’s
largest economies, are showing
Building
Partnerships
for Sustained
Growth
COVER STORY
india and the world
The Partnership Summit celebrated the rise of
India as a global growth engine, while outlining a roadmap of
the nation's ‘global integration strategy’ in the new world economic order.
Our cover story showcases the mega-event which witnessed the active
engagement and collaboration of India within, and with the rest of the world,
through stimulating discussions between the key stakeholders – policy-makers,
institutions, businesses, media and academia.
Ministers and Industry leaders at the lamp-lighting ceremony to inaugurate
the Partnership Summit in Visakhapatnam

Dr Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall; Ramesh Abhishek, Secretary, DIPP; Nirmala Sitharaman,
Minister of State (Independent Charge) of Commerce & Industry; Arun Jaitley, Minister of Finance, and of Corporate Affairs; N Chandrababu Naidu,
Chief Minister of Andhra Pradesh; M Venkaiah Naidu, Minister of Urban Development, Housing, and Urban Poverty Alleviation, and Information
& Broadcasting; Ashok Gajapathi Raju Pusapati, Minister of Civil Aviation; Y S Chowdary, Minister of State of Science & Technology, and
Earth Sciences; Kumar Mangalam Birla, Chairman, Aditya Birla Group; Shobana Kamineni, President Designate, CII, and
Executive Vice Chairperson, Apollo Hospitals Enterprise Ltd, and Satya Prakash Tucker, Chief Secretary, Andhra Pradesh,
at the Inaugural Session of the Partnership Summit in Visakhapatnam
economic resilience. While Indonesia and Philippines are
ramping up investments, Vietnam is sustaining expansion,
and Thailand is gathering momentum.
According to the Asian Development Bank, in 2016, Asian
economies grew at about 5.6%, on the back of China’s
transition to a consumption and services-led economy,
and the on-going structural reforms in India. Emerging
markets in Latin America too are at an advantage due
to their huge domestic consumer base.
The year 2016 was a defining period for an emerging
world order, with events such as Brexit, the US
Presidential elections, and the civil war in Syria, as
well as momentous natural disasters, leading to global
economic and geopolitical churn. While creating an
environment of instability, these events have also
thrown open new opportunities for growth.
Interestingly, the year also marked some key developments
in the world’s progress towards collaboration for
sustainable growth and development.
• In the biggest coming-together of nations on
common ground, the Global Climate Change Pact
negotiated in Paris in 2015 was ratified by 118 of
the 194 nations, triggering new commitments to
combat global warming.
• For the first time, the B20/G20 Summit focused on
global economic development rather than that of
the G20 nations alone. The Hangzhou Consensus
signed by G20 members at the Summit called for a
comprehensive and integrated narrative for strong,
sustainable, balanced and inclusive growth.
• The World Bank’s latest review report reveals that
in 2016, a coalition of 60 governments, of both
developed and developing countries, committed a
record $75 billion towards the World Bank’s fund
for the poorest nations.
• Building upon the September 2015 acceptance of
the Sustainable Development Goals (SDGs), various
nations reiterated their commitment towards the
achievement of the UN Agenda 2030 SDGs.
• New technologies and techniques are giving rise to re-
shoring activities, and global value chains have become
a dominant feature of world trade, encompassing
developing, emerging, and developed economies.
The inter-dependence of advanced and emerging
economies is undeniable. In a global landscape with
several transformative forces at work, new economic,
technological, environmental and social challenges are
emerging. These challenges are transnational, and call
for collective solutions and global collaborations. Today,
efforts are being made to promote inclusiveness, with
fiscal and monetary policies and structures that maximize
synergies and cooperation amongst nations.
In these exciting and transformative times, India stands
at the cusp of growth. With 7.6% GDP growth in 2015-16,
over $2 trillion GDP in nominal terms, and an expected
869 million labor force by 2020, India can lead global
economic and trade growth.
The Indian Government has taken several initiatives to
improve the country’s attractiveness as an investment
destination as well as a business partner. India has
moved up 12 notches in the World Bank's Ease of
Doing Business rankings in the last two years. Strong
COVER STORY

moves such as demonetization have paved
the way for a stronger economy, which is
expected to continue to grow at 7% in the
next fiscal. India’s new foreign trade policy,
international visits by the Prime Minister
and engagement with developed nations,
a successful push for membership of the
RCEP, and trade agreements with the ASEAN
nations, symbolize India’s renewed thrust
towards global integration.
A recent UN study highlights that India’s
growth will be underpinned by accelerated
infrastructure spending and measures to
create a better investment climate. The
Goods and Services Tax (GST) Constitutional
Amendment Bill has cleared the way for the
implementation of a uniform indirect tax
regime in the country, while the Bankruptcy
Code has replaced numerous archaic
legislations with a modern contemporary
law, allowing easy exit to companies. The
consistent convergence of Government and
industry efforts for an enabling ecosystem
as well as efficient governance can enhance
India’s competitiveness.
It is now India’s moment of truth to forge a
path to progress that has never been explored
before, encompassing both economic growth
and environmental sustainability.
Indeed, with 'Partnerships, to catalyze global
solidarity for sustainable development,' listed
by the UN as one of the 5 Ps of its anti-poverty
campaign, along with Prosperity, People,
Planet, and Peace, CII's Partnership Summit
assumes even greater relevance today.
COVER STORY
T
he India opportunity was effectively highlighted at
Visakhapatnam, with the convergence of over 2000
delegates from 51 countries on 27-28 January for CII’s
prestigious Partnership Summit. This year, the Government of
Andhra Pradesh was the Host State Partner for the annual flagship
event, organized by CII in association with the Department of
Industrial Policy and Promotion (DIPP), Ministry of Commerce
and Industry.
The Summit is a unique platform for close examination of the
partnerships and synergies to spark the next phase of global
growth, and to develop strong multi-country linkages and
networks. Initiated in 1995 to commemorate CII’s centenary
year, the event, with over two decades of active engagement
and collaboration of India at a global level, attracts around
2000 delegates every year with over 40% participation from
overseas.
The theme for this year’s Summit was ‘Partnerships for Shared
New Realities.' Over the years, global economic rebalancing
has taken a definitive shift towards Asia and the emerging
economies. Today the G20 nations together represent 85%
of global output. And China and India continue to create an
economic buzz in a milieu where the developed world clocked
in a low 2.5% growth.
Three key directional shifts are powering India’s growth, said
Mr Arun Jaitley, Minister of Finance, and of Corporate Affairs,
inaugurating the Partnership Summit. These are the JAM trinity
(Jan Dhan Yojana, Aadhar, Mobile), the Goods and Services Tax
(GST), and Demonetization, he said. While the JAM trinity would
Partnerships
for Shared
New Realities

COVER STORY
help promote financial inclusion in the country, the GST,
he explained, would make India one large market and
would go a long way in making doing business in India
much easier. Demonetization, he said, has helped make
the economy much more compliant. Mr Jaitley pointed
out that the formal economy was expanding at a rapid
pace now, and this would lead to much more revenue
for the Government.
The Finance Minister stated that the Center has a
vested interest in the progress of Andhra Pradesh,
whose GDP, he said, is likely to grow ahead of the
national GDP. Commending the State Government
for making Andhra Pradesh the easiest place to do
business, Mr Jaitley said that a large number of central
institutions have been established in the State over
the last 2.5 years, to help it overcome the challenges
of its bifurcation.
Mr N Chandrababu Naidu, Chief Minister of Andhra
Pradesh, invited businesses from India and abroad to
invest in the State. With Gross
State Domestic Product growth
consistently out-performing the
national average to clock 10.99%
this year, vis-a-vis India's overall
7.5% GDP growth, the target is
to touch 15% growth next year,
he declared.
The mantra of the Government is
‘Reform, Perform and Transform,’
stated Mr M Venkaiah Naidu,
Minister of Urban Development,
Housing and Urban Poverty Alleviation, and Information
and Broadcasting. The entire effort is to transform India
and bring about inclusive growth, he said, sharing that
his Ministry is taking measures to bring down the time
taken to obtain construction permits from over a year
to just 60 days. The Smart Cities Mission has led to an
urban renaissance, and there is a new-found enthusiasm
to improve urban conditions, he said.
Ms Nirmala Sitharaman, Minister of State (Independent
Charge) of Commerce and Industry, observed that
even though the overall global economic scenario is
not very bright, there is a lot of vibrancy in the Indian
economy, which is growing at over 7%, and has the
potential to grow faster. Many systemic reforms are
being undertaken, such as banking sector reforms, and
GST, among others, she said.
Mr Ramesh Abhishek, Secretary, DIPP, pointed out
that the States are now competing with each other to
improve the ease of doing business. They are learning
Partnership Summit at a Glance
Domestic Delegates 2000
Overseas Delegates 400
Foreign Participation 50 countries
Overseas Trade & Commerce
Ministers and Officials
7
MoUs Signed 665
Investments Pledged `10,54,590 crores
Potential Job Creation 22.3 lakh
from each others’ experiences. The Government is
steadfastly promoting cooperative federalism, thereby
galvanizing the growth potential of the State economies.
Even regulators are taking a re-look at their processes,
and reforming them, he said.
A slew of positive policy steps has contributed to
the country receiving $144 billion of foreign direct
investments in the last 2.5 years, he added.
Mr S P Tucker, Chief Secretary, Andhra Pradesh, said
reforms are being undertaken for the State to sustain
double digit growth for the next 10-15 years. The
State Government is working near real time to review
investment proposals: in 2016-17 alone, projects worth
`1,17,000 crores gained traction in the State, he said.
The sustained development of the economies of India's
States will help the country continue to be one of the
10-best performing economies in the world over the next
25 years, said Dr Naushad Forbes, President, CII, and Co-
Chairman, Forbes Marshall. One of India's key strengths
is that 2/3rd of its growth comes
from domestic consumption. At
a time when many countries in
the world are increasingly looking
inwards, India and China are
now the key advocates of free
trade. The mantle of leadership
is shifting, he said.
Mr Kumar Mangalam Birla, CMD,
Aditya Birla Group, stated that
his Group has already invested
`10,000 crores in Andhra Pradesh,
and expects to invest `7,000 crores more over the next
two years to expand their existing facilities.
Mr Baba Kalyani, CMD, Bharat Forge Ltd, announced
that his Group is investing `30,000 crores in a facility in
Nellore, construction for which would begin very soon.
Describing the Summit as “most constructive and
productive,” Mr Chandrajit Banerjee, Director General,
CII, expressed confidence that many of the international
delegates present, who had so far not factored India
into their growth models, would now be assessing
the country's potential, and coming out with lucrative
new investments.
The participation of leaders and delegations from
so many countries, and their interest in India is
very heartening and encouraging, said Ms Shobana
Kamineni, President Designate, CII, and Executive Vice
Chairperson, Apollo Hospitals Enterprise Ltd, in her
concluding remarks.

COVER STORY
Andhra Pradesh: Sunrise State
A
t the special plenary session on ‘Celebrating
Sunrise Andhra Pradesh: Ready for the World,
Ready for the Future,’ leaders from Government
and industry shared how, with development on the
fast-track since 2015, Andhra Pradesh has emerged as
the fastest-growing State in India, with 10.99% GSDP
growth in 2015-16.
In his keynote address, Mr N Chandrababu Naidu, Chief
Minister of Andhra Pradesh, laid out his Vision 2050 –
to make Andhra Pradesh the leading global investment
destination. “Sustainable development of a region is
possible when happiness is considered as an index
of growth. Therefore my Government is working for
the overall development of our people. This includes
providing health security for the disabled, home security
for all citizens, and fodder security for people with
livestock," he said, adding that the State is taking the
United Nations Sustainable Development Goals as a
benchmark and is diligently working towards them.
“We have embarked on a journey of consistent double
digit growth, and are confident of emerging as a
developed State by 2029. Andhra Pradesh has been
rated as the top State in the country for 'Ease of Doing
Business' by the World Bank and the Government
of India, up from the 2nd
position the previous year.
This is a reflection of our continued commitment to
provide best-in-class policies, stable industrial relations,
and an investor-friendly business environment," said
Mr Naidu.
In terms of investment, Andhra Pradesh is aiming at
`7-8 lakh crores in the year 2018. Of the 328 MoUs
signed at the last Partnership Summit, also held in
Visakhapatnam in 2016, 50% have already translated into
projects. Investments of `2,82,715 crores have come
into the State in the last one year, he added.
Solomon Arokia Raj, Secretary, Industries & Commerce, Andhra Pradesh; Ashok Gajapathi Raju Pusapati; Suresh Prabhu, Minister of Railways;
N Chandrababu Naidu; Dharmendra Pradhan, Minister of State (Independent Charge) of Petroleum & Natural Gas; Dr Subhash Chandra,
Chairman, Essel Group; Tulsi Tanti, Chairman, Suzlon Energy, and Chandrajit Banerjee, Director General, CII
BYTES
‘GST will bring a revolution in the way businesses are
done, and investments are made in India.To successfully
implement the Central Government’s vision, all State
Governments need to cooperate with the private sector,
neighboring States, technology providers, and also the
rest of the world.’
Suresh Prabhu,
Minister of Railways
'Availability of land plays a major in the development
of the aviation sector, and Andhra Pradesh has readily
agreed to provide land for the further development of
this sector.’
Ashok Gajapathi Raju Pusapati,
Minister of Civil Aviation
‘The Government is committed to taking all necessary
steps for improving the ease of doing business in India.
The total FDI inflow in the last 2.5 years has touched
$130 billion, the highest-ever recorded in India. This
has been possible due to the cooperation and robust
performance of States like Andhra Pradesh, which
are striving to build quality infrastructure and create
a conducive business environment.’
Dharmendra Pradhan, Minister of State
(Independent Charge) of Petroleum and Natural Gas
‘Availability of land, power, water, IT connectivity, favorable
policies, skilled manpower, sustainable leadership and
good governance contribute to the development of
the economy of a region. The Government of Andhra
Pradesh is proactive in providing investors with all these
requirements.’
G M Rao,
Group Chairman, GMR Group

CII-Government of Andhra Pradesh MoU
CII inked an
MoU with the
Government of
Andhra Pradesh
for developing
Amaravati as
a model green
and smart city,
d u r i n g t h e
P a r t n e r s h i p
Summit 2017.
The activities
proposed under the MoU include capacity-building
and training programs for engineers, architects and
developers; enabling investments and entrepreneurs
in green buildings and green cities; and facilitating
in implementing and achieving Indian Green
Building Council (IGBC) green ratings for upcoming
buildings in Amaravati, and for Amaravati city as
a whole.
The MoU was exchanged by Dr Sreedhar Cherukuri,
Commissioner, Andhra Pradesh Capital Region
Development Authority and Capital Area, and
Mr S Raghupathy, Deputy Director General, CII,
in the presence of Mr N Chandrababu Naidu,
Chief Minister of Andhra Pradesh, on 28 January,
in Visakhapatnam.
COVER STORY
At the exchange of the CII-Government
of Andhra Pradesh MoU, in
Visakhapatnam
‘An MoU was signed in 2016 during the first Sunrise
Andhra Pradesh Investment Meet for setting up an
industrial park with an investment of $11 billion,
and today there has been substantial progress in
implementing the project. This year, the Essel Group
has signed an MoU worth `5,000 crores for developing
smart cities.’
Subhash Chandra,
Chairman, Essel Group
‘Chief Minister N Chandrababu Naidu’s dynamic vision
of making Andhra Pradesh not just an energy surplus
state but also a green energy state has led to the
development of many renewable and alternate energy
initiatives. These include the installation of 60% of
India’s LED installation for energy conservation, linking
the Godavari and Krishna rivers to provide clean drinking
water and meet the needs of farmers, connecting the
entire State with fiber optics, and plans of developing
Amaravati as a world class city. By developing tailor-
made policies for investors, Andhra Pradesh is at the
forefront of development.’
Tulsi Tanti,
Chairman, Suzlon Energy
‘The determination and the dynamism of the State
Government in encouraging innovative projects is making
Andhra Pradesh a promising State for investment.’
Chandrajit Banerjee, Director General, CII
US-India Relations under the New Regime
A panel discussion on ‘India-US Relations: What does the New Administration Have in Store?’ with notable
speakers such as Dr C Raja Mohan, Director, Carnegie India; Mr B V R Mohan Reddy, Executive Chairman,
Cyient Ltd; Ms Lisa Curtis, Senior Research Fellow, Asian Studies Center, Davis Institute for National Security
and Foreign Policy, The Heritage Foundation; and Mr Kartikeya Singh, Deputy Director and Fellow, Wadhwani
Chair of US-India Policy Studies, Center for Strategic and International Studies, (CSIS), was held during the
Partnership Summit.
The topics discussed included the US
withdrawal from the TPP, the impact of
President Trump’s ‘Hire America’ platform
on H1-B workers, and India’s continued
partnership with the US in defence,
counter-terrorism, nuclear non-proliferation
and energy. While examining the previous
assumptions held by India in its relationship
with the US, the speakers’ consensus was
that the election of Mr Donald Trump to
the American presidency offered more
opportunities than challenges.
Kartikeya Singh, Deputy Director and Fellow, Wadhwani Chair in US-India
Policy Studies, CSIS; Lisa Curtis, Senior Research Fellow, Asian Studies
Center, Davis Institute for National Security and Foreign Policy, The Heritage
Foundation, USA; C Raja Mohan, Director, Carnegie India, and
B V R Mohan Reddy, Executive Chairman, Cyient Ltd

Building International Partnerships
'Hydel-power could be a game-changer for Nepal.
The Himalayan country has the potential for
100,000-300,000MW of hydel power, which
will change the energy scenario in the region.
Investments from India and other countries can
help leverage the huge potential in hydel power
and other environmentally-friendly industries.'
Romi Gauchan Thakali,
Minister of Commerce, Nepal
'India has become a locomotive for growth in the
world. Events like the Partnership Summit have
become influential platforms for driving trade and
investment, and should be encouraged.'
Stepan Kubiv, First Vice-Prime Minister, and
Minister of Economic Development and
Trade, Ukraine
'The UAE is a strong believer in India’s growth
story. India is a 'miracle’ in the way it has
embraced so many diverse groups but still remains
united and strong. The 21st
century will be Asia’s
century, and the UAE will ensure that it is a part of
this economic growth.The UAE-India relationship
is being remodeled by Prime Minister Modi into
a special one.’
Sultan Bin Saeed Al Mansoori,
Minister of Economy, UAE
'While the rise of India and Asia is commendable,
there is huge potential in Africa too, especially in
agriculture, mining, manufacturing, infrastructure
and forestry. Africa is open for business. We need
South-South cooperation, and developing countries
need to ensure their interests in an equitable and
fair ecosystem for trade and investment.’
C I Mabuwa, Deputy Minister of Industry and
Commerce, Zimbabwe
COVER STORY
C I Mabuwa, Deputy Minister of Industry & Commerce, Zimbabwe; Tofail Ahmed, Minister of Commerce, Bangladesh; Nirmala Sitharaman;
Stepan Kubiv, First Vice-Prime Minister and Minister of Economic Development & Trade, Ukraine; Dr Naushad Forbes;
Sultan Bin Saeed Al Mansoori, Minister of Economy, United Arab Emirates, and Romi Gauchan Thakali, Minister of Commerce, Nepal
T
he challenges for sustained economic
and trade growth are transnational, and
call for collective solutions. Ms Nirmala
Sitharaman, Summit Chair, and Minister of State
(Independent Charge) of Commerce and Industry,
engaged with Trade Ministers and officials from
the UAE, Bangladesh, Nepal, Ukraine, and
Zimbabwe, to explore how developing countries
could take the lead towards achieving sustained
economic and trade growth.
The emerging markets or the developing
economies “are no more just developing, but
are the new engines of growth which are pulling
the world along,” said Ms Nirmala Sitharaman.
Be it IT, ITeS, agriculture, the pharmaceutical
sector or the knowledge economy, countries
like India are showing the world the way
forward, she said, pointing to areas like bulk-
drug manufacturing where Indian companies are
leading in low-cost pharmaceutical manufacturing,
setting the benchmarks for even the developed
world.
BYTES
'Bangladesh, like India, is growing at a
fast pace and has achieved 7.1% GDP, while
maintaining over 6% growth in the last
ten years. The country is working closely with
India, China and Myanmar to bring the regional
economic corridor to completion. With the
thrust on rapid growth, Bangladesh is billed to
earn $50 billion in readymade garments exports
alone.'
Tofail Ahmed,
Minister of Commerce, Bangladesh

Partnerships for Sustainable Development
The Sustainable Development Goals (SDGs) are a
set of 17 specific goals offering special focus on
important areas related to sustainable development,
that require urgent and extensive attention from
governments.
While the Government of India has implemented
many programs to bring improvement in the quality
of life in rural areas through employment generation,
development of rural infrastructure, and provision of
other basic amenities, it still needs to identify gaps
and prepare an implementation framework to meet
the major SDG goals. India is also emerging as a
development partner for countries in Asia and Africa
with a wide aid and growth agenda.
This session explored the environment for nurturing
the SDGs and the COP22. The Happiness Index made
its way into the discussions as one of the main
parameters for countries to keep on the radar to
achieve the SDGs. For this subject of global import,
the panelists included Ms Arancha Gonzalez, Executive
Director, International Trade Centre, Switzerland;
Dr Frank-Jurgen Richter, Chairman, Horasis,
Switzerland, and Mr Geoffrey Clements, Chairman,
The Commonwealth Association for Infrastructure
Development, United Kingdom, Mr Chrys Fernandes,
Regional Commercial Leader – India, SE Asia & Pacific,
Dow Chemicals, Mr Ramesh Kymal, Co-chair, CII
Committee on Renewable Energy, and MD, Gamesa
Wind Turbines Pvt Ltd.
BYTES
‘Ideally, cities should partner with businesses to develop
cost-effective and energy-efficient technologies.’
Chrys Fernandes, Regional Commercial Leader –
India, SE Asia & Pacific, Dow Chemicals
Plenary Sessions
COVER STORY
Dr Frank-Jürgen Richter, Chairman, Horasis, Switzerland; Ramesh Kymal, Co-chair, CII Committee on Renewable Energy, and MD, Gamesa
Wind Turbines Pvt Ltd; Arancha Gonzalez, Executive Director, International Trade Centre, Switzerland; Pranjal Sharma, Economic Analyst &
Writer; Geoffrey Clements, Chairman, CIID, United Kingdom, and Chrys Fernandes, Regional Commercial Leader – India, SE Asia & Pacific,
Dow Chemicals
‘India had taken the lead in renewables in the 1990s, but
had then fallen off course. Only lately has it picked up
steam again. The country has set an ambitious goal of
generating renewable energies of 175 GW by 2022.’
Ramesh Kymal, Co-chair, CII Committee on Renewable
Energy, and MD, Gamesa Wind Turbines Pvt Ltd
Global Financial Architecture
The global financial system has still not fully recovered
from the 2008 financial crisis. While there is a need
to develop a comprehensive regulatory framework
to prevent such crisis in the future, the world's
financial system needs to be resilient enough to
support global investment dynamics and infrastructure
financing.
Underlining the importance of strengthening
the safety net for global financial stability, Mr Subir Gokarn,
ExecutiveDirector,InternationalMonetaryFund,USA,saidthe
safety net is linked to three key components – self-insurance
of individual economies by way of their respective forex
reserves,regionalfinancialarrangements,andtheIMF’sglobal
safety net. The panelists conclusively agreed that
investments in infrastructure are the key to ensuring the
resilience of the economy, if innovative financial instruments
can be developed that could be of interest to investors.
BYTES
‘As the interest rates come down, it would be necessary
to develop innovative financial instruments to attract
investors. Moreover, as the country looks to develop
100 smart cities, a certain balance between utilizing
domestic savings and foreign investments will have
to be arrived at.’
Nimesh Kampani, Chairman,
CII National Committee on Financial Markets, and
Chairman, JM Financial Group

‘The Government is now focused upon electrifying the
last 6,000 villages.’
P V Ramesh, CMD,
Rural Electrification Corporation Ltd
Industry 4.0
We are at the dawn of the 4th
Industrial Revolution,
integrating the digital and manufacturing worlds.
Technologies such as big data and analytics, autonomous
robots, simulations, horizontal and vertical system
integration, the industrial Internet ofThings, cyber security,
the cloud, additive manufacturing, and augmented reality
are transforming the manufacturing landscape.
India’s ambitious ‘Make in India’ initiative envisages a
25% share of manufacturing in the nation’s GDP from
the current 17%.
The deliberations explored how India can and should
embrace Industry 4.0 for sustained growth in the
emerging global economic order. Innovation would help
India move forward on its mission of digitization of the
manufacturing sector, it was suggested, with the focus on
employment generation, especially in renewable energy,
SMEs, and manufacturing. In this transformative process,
industry will also have to deal with challenges related
to working capital needs, financing of manufacturing
business and inventory management.
BYTES
‘Digitization of the manufacturing sector and the
integration of digital technologies are the need of the
hour.To save existing
jobs and create new
ones it is important
for both Government
and industry to look at
the existing industrial
scenario and work
towards reviving and
reconstructing the
industries that are
lagging behind. ‘Go Rural, Go Green, Go Global’ should
be the motto for new innovations.’
Y S Chowdary, Minister of State of Science &
Technology, and Earth Science
'Automation has facilitated the remote operation of
mining activities in Western Australia. Using Big Data
and predictive maintenance, industry there has been
able to significantly increase productivity levels, making
Western Australia the number one destination for global
investments in the mining business. Western Australia
has signed an MoU with the Government of Andhra
Pradesh for developing a mining university, and for skill
development for mining industries.'
Stephen Wood, Director General, Department of
State Development, Western Australia
‘India is a hub of knowledge and technology and has the
capability to produce outstanding results in global markets.
Information technology, automotives, manufacturing and
pharma will be the key drivers of India’s future’
Rafael Escalona Reynoso,
Lead Researcher – Global Innovation Index, Cornell
College of Business, USA
'Some $2 trillion capex is needed in India’s manufacturing
sector over the next 10 years for the sector to gain 25%
share of national GDP. Mass customization, as opposed
to mass standardization, will define the contours of
Indian manufacturing in the coming years.’
Sunil Mathur,
MD & CEO, Siemens Ltd
COVER STORY
Nirvikar Jain, Chief Representative-India Office, First Gulf Bank; Dr Subir Gokarn, Executive Director, IMF, USA;
Nimesh Kampani, Chairman, CII National Committee on Financial Markets, and Chairman, JM Financial Group;
S V Muralidhar Rao, Executive Director, SEBI; and P V Ramesh, CMD, Rural Electrification Corporation Ltd
Rafael Escalona Reynoso, Lead Researcher- Global Innovation Index, Cornell College of Business, USA; Ramesh Datla, CMD, Elico Ltd;
Y S Chowdary; Ramesh Abhishek; Stephen Wood, Director General, Department of State Development, Western Australia;
Sunil Mathur, MD & CEO, Siemens Ltd, and Srini Srinivasan, MD, Hospira Healthcare Pvt Ltd

‘The challenge in ushering in
Industry 4.0 is about creating
a circular economy. All pieces
of industry, including SMEs,
need to be transformed. Job
creation is very important. The
skilling initiatives that support
the Industry 4.0 drive should
address the issue of job mis-
allocation too.’
R Mukundan, MD, Tata
Chemicals
‘We need to define Industry 4.0 in relation to the SME
sector. This calls for developing the right standards
for small enterprises and ensuring their adherence,
promoting innovation for value-addition in manufacturing,
increasing interaction between industry and research
institutions, developing centers of excellence, building
smart factories, and enabling skill development.’
Ramesh Datla, Chairman,
CII Southern Region, and CMD, Elico Ltd,
‘Industry 4.0 is critical for the Indian pharma industry
to increase its share of the global market. Today 2/5 of
all medicines consumed globally are manufactured in
India. The challenge is to consistently meet the quality
standards laid down by pharma regulators around the
globe, which can be achieved through Industry 4.0.’
Srini Srinivasan, MD, Hospira Healthcare Ltd
‘Skill development programs should be aligned with the
goal of creating smart jobs. The GST should perhaps
provision for encouragement of adoption of green
technologies for manufacturing.’
Jalaj Ashwin Dani, President – HR, Supply Chain &
Chemicals, Asian Paints Ltd
Industrial Corridors
India is developing industrial and transportation corridors
in a big way. The projects involve creating efficient
transport facilities and manufacturing infrastructure. The
Government’s initiatives in developing five industrial and
economic corridors, linking Delhi-Mumbai, Bengaluru-
Mumbai, Chennai-Bengaluru, Visakhapatnam-Chennai,
and Amritsar-Kolkata, will create a whole new map for
Indian industrial networks. Various infrastructure projects
like development of roads, drainage, sewage, potable
water, water treatment, sewage treatment plants,
logistics networks, et al are being developed to unleash
greater connectivity as well as provide impetus to the
success of the ‘Make in India’ campaign.
COVER STORY
Alkesh Sharma, CEO, DMICDC; M T Krishna Babu, Chairman, Visakhapatnam Port Trust;
Nitin Gadkari, Minister of Road Transport & Highways, and Shipping, and N Chandrababu Naidu
BYTES
‘Developing sustainable infrastructure in the country remains
the highest priority of the Government. Visakhapatnam is
an arterial port connecting many manufacturing hubs and
industrial clusters, and the Government has invested over
`6,000 crores for its development. To reduce the logistics
costs within the country, the Government has taken up
the development of coastal economic zones through the
Sagar Mala Project. This project is expected to bring in
investments of over `8 lakh crores and generate a huge
number of jobs. Initiatives are being taken to connect
inland waterways with ports.’
Nitin Gadkari, Minister of Road Transport and
Highways, and Shipping
‘India’s GDP will grow if there is focus on creating
employment opportunities for the youth, developing an
export model economy, and working towards sustainable
growth.The Government of India’s initiatives of developing
industrial corridors will further these goals.’
Alkesh Sharma, CEO, Delhi Mumbai Industrial
Corridor Development Corporation (DMICDC)
'The Asian Development Bank has approved a $ 631
million loan for building India’s first coastal industrial
corridor, between Visakhapatnam and Chennai. This
corridor is expected to boost development on the
eastern coast of India and enable seamless trade links
with South-east and South Asia.’
Johanna Boatel, Principal Economist,
Asian Development Bank
‘The logistics cost in India is way too high compared
to developed countries. Therefore the focus of both
the Central and State Government on developing better
rail, roads, inland waterways and air facilities is critical.
Investors always look for availability of land, power and
basic amenities before going ahead with their projects.’
M T Krishna Babu, Chairman,
Visakhapatnam Port Trust

T
he 22nd
International Engineering & Technology Fair (IETF) 2017,
a flagship event of CII, held in New Delhi from 2-4 February,
once again served as a unique platform for entrepreneurs,
businesses, policy-makers and innovators, to showcase their products
and services to take Indian industry to the next level of growth.
Mr Anant Geete, Minister of Heavy Industry and Public Enterprises,
inaugurated IETF 2017 in a ceremony attended by top industry
players and stakeholders from various sectors. The focus was on
future technologies for eight industrial sectors - Green Mobility,
Industrial Automation, Logistics, Metal and Metallurgy, Real Estate
and Building Technology, Water, Waste and Recycling, and Welding
and Joining Technologies.
Showcasing Engineering
and Technological Excellence
FOCUS
event
Shubhra Singh, Executive Director, ITPO; Rumjhum Chatterjee, Chairperson, CII (NR), and Group MD, Feedback Infra Pvt Ltd; Sumit Muzumder,
Past President, CII, Chairman, CII National Committee on Integrity & Transparency in Governance, and CMD, TIL Ltd; Anant Geete, Minister of
Heavy Industries & Public Enterprises; Kenji Hiramatsu, Ambassador of Japan; Deep Kapuria, Chairman, CII Trade Fair Council, and Chairman,
The Hi-Tech Gears Ltd, and Hideki Okamura, Chairman, Computer Entertainment Suppliers Association, Japan, at IETF 2017 in New Delhi
Faggan Singh Kulaste, Minister of State of
Health & Family Welfare, and Shobana Kamineni,
President Designate, CII, and Executive
Vice-Chairperson, Apollo Hospitals Enterprise Ltd,
at Health Tech India
P P Chaudhary,
Minister of State of
Law & Justice, and
Electronics & IT, at the
Conference on Indian
Gaming Industry
Piyush Goyal, Minister of State (Independent Charge) of
Mines, Power, Coal, and New & Renewable Energy, and
T V Narendran, Chairman, IETF Metals & Metallurgy
Steering Committee, Chairman, CII (ER), and MD, Tata
Steel Ltd, at the Conference on Metal & Metallurgy
Anant Geete with Dr Naushad Forbes, President,
CII, and Co-Chairman, Forbes Marshall, and
Chandrajit Banerjee, Director General, CII

The first-ever international
gaming and animation show in
India, the India Gaming Show
2017, was held concurrently with
IETF from 2-5 February, with the
participation of as many as 90
companies from 12 countries. Japan was the partner
country, while Korea was the guest country and the UK
the focus country, for the maiden edition of the Gaming
Show, which was backed by the Ministry of Electronics
and Information Technology.
Among other countries, Germany, USA and Poland
brought their best gaming companies to the show.
Some of the leading brands included J-Lop, Sega,
Konami, Square Enix, Sony India, Samsung and Asus.
Indian gaming start-ups also showcased their potential
to compete in the international market, and participated
in the show to attract potential collaborators and gain
exposure to the latest gaming technologies. With over
70 million gamers in the country, the Indian gaming
market is pegged at $890 million.
The India Gaming Show 2017 was inaugurated by
Mr PP Choudhary, Minister of State of Electronics
and Information Technology (IT), on 2 February. Mr
Debashish Dutta, Group Coordinator R&D (IT), Ministry
of Communications and IT, was the Guest of Honor.
The show was the first attempt to provide a strong
platform to all stakeholders in both Indian and
international gaming markets to present new trends
and technologies in the upcoming gaming sector. It
proved to be a major hit among youngsters, who were
treated to e-sports exhibition tournaments, and games
like DOTA2, CS:GO and Clash Royale, among hundreds
of others, along with the opportunity to see professional
gamers from the international circuit.
A one-day international conference on gaming brought
experts together to discuss ways to unlock India’s
potential in the sector.
Health Tech India
2017, organized by
CII concurrently
with the IETF from
3-5 February, brought over 100 health technology
companies, both national and international, together,
to showcase their innovations and decide on a future
roadmap to provide a fillip to the sector.
The first comprehensive show dedicated to health
technologies in the country was inaugurated by
Mr Faggan Singh Kulaste, Minister of State of Health
and Family Welfare. Over 10,000 medical and healthcare
FOCUS
Attending IETF on 3 February, Mr Piyush Goyal, Minister
of State (Independent Charge) of Mines, Power, Coal,
and New & Renewable Energy, said the Union Budget
focuses on ushering in new technologies, new ideas and
innovations, and supporting and encouraging SMEs.
This year, for the first time, three concurrent events
– Health Tech India, the India Gaming Show, and
Knowledge Expo, were organized as part of the
mega-event, enabling technological and knowledge
convergence on a single platform. The new initiatives
also included the debut of three focused shows: the
India Industrial Automation Show, the Real Estate and
Building Technology Show, and the Welding and Joining
Technology Expo.
Demonstrating its commitment as one of the most
important strategic partners of India's economic
resurgence, Japan participated as Partner Country
at IETF 2017 for the record 5th
time. Forty Japanese
companies put up a large display of their products
and technologies in IT and Gaming, in an exclusive
pavilion. Apart from Japan, around 500 companies from
25 countries participated as exhibitors.
Spread across three days, IETF 2017 featured 25
seminars, conferences and workshops. The subjects
discussed spanned new technologies in the real estate
and automotive sectors, smart waste management
under the Swachh Bharat Mission, water security and
sustainability, technological innovations in the logistics
sector, green mobility, societal manufacturing, and
leveraging engineering and technological excellence to
boost productivity, build capacity and enhance MSME
competitiveness, among many others.
Experts participating in the knowledge sessions
underscored the need for a central repository of
data on the products and services of Indian MSMEs
located all over the country, to enhance their visibility
and enhance their market access. They also stressed
on the application of decision support tools such as
CII’s WATSCAN, along with water audits, for smart
management of the country’s precious water resources.
The key role of the metal and metallurgy sector in
creating significant employment opportunities was also
highlighted.
The 22nd
edition of this biennial mega event was supported
by 11 Ministries of the Government of India – Ayush;
Coal; Electronics & IT; Environment, Forest & Climate
Change; Heavy Industries & Public Enterprises; Health &
Family Welfare; New & Renewable Energy; Petroleum &
Natural Gas; RoadTransport & Highways; Steel; and Urban
Development; as also the Government of Delhi.

diseases like diabetes, the R&D landscape for life
sciences, leveraging IT for disruptive healthcare services,
innovations and trends in medical devices and equipment,
and innovations in diagnostics.
The event underscored that technology holds the key
to providing quality healthcare in a country like India
where close to 70% of the population resides in rural
areas. Disruptive technologies like telemedicine and
technology apps based on mobile telephony can, to
a great extent, help India achieve universal healthcare
in a relatively shorter timeframe. Health Tech India
also highlighted the importance of industry-academia
partnerships to bring down the imports of devices
and drugs, and to leverage India’s large
reservoir of knowledge and expertise in
traditional medicines and biotechnology
to achieve healthcare goals.
To provide a
fillip to ‘Global
K n o w l e d g e
Collaborations,’ the 2nd
edition of
Knowledgexpo was organized as a
concurrent show of IETF, between
2-4 February in New Delhi. The global
knowledge partnership platform saw
comprehensive convergence of key
FOCUS
professionals from across the country participated in the
event, along with representatives from the Central and
State Governments, Defence, Army, Railways, etc, as
did a large number of health tech start-ups.
Besides live product and equipment demonstrations,
the event offered opportunities for entrepreneurs and
businesses to connect through B2B meetings. It also
served as a platform for the Government to announce new
rules and regulations for the medical devices industry to
boost manufacturing under the ‘Make in India’ initiative.
Since knowledge-sharing was a crucial part of Health
Tech India, the event saw two days of conferences
covering diverse subjects such as non-communicable
Dr Shubnum Singh, Chair, CII-NITI Aayog Projects on PPP for NCDs, and Chief Executive,
Max Institute of Health Education & Research; Dr Rana Mehta, Knowledge Partner on
Healthcare to CII, and Partner & Lead, Healthcare, PwC; Chandrajit Banerjee; Pooja Kapur,
Joint Secretary (ASEAN) Ministry of External Affairs, India; Byambasuren Lamjav, Vice
Minister for Health, Mongolia; and Gonching Ganbolo, Ambassador of Mongolia to India,
at the ASEM Workshop on Diabetes in New Delhi
Glimpses of IETF 2017

players from various
domains: Science &
Technology, Research
& Development,
Innovation, Higher
Education, Design,
Intellectual Property
R i g h t s , a n d
Entrepreneurship,
for forging knowledge-business partnerships.
The exhibition area was divided into five zones, i.e. R&D
& Technology Showcase, India Design Show, Innovation &
Entrepreneurship Showcase, Intellectual Property Showcase,
and Higher Education Showcase.
The Technology Showcase had two major pavilions.One, created
for the Council of Scientific & Industrial Research (CSIR),
displayed the prowess of Indian research institutions in terms
of research capabilities and infrastructure, technologies and
technology-intensive products developed, and the capability
and achievements of CSIR labs. In the other, created for
the National Accreditation Board for Testing and Calibration
Laboratories (NABL), various testing and calibration laboratories
like Dr Lal Path Labs, Bureau Veritas, etc. presented their
services. The National Research and Development Corporation
also participated in the Technology Showcase.
The India Design Show, organized in partnership with the
Department of Industrial Policy and Promotion (DIPP), the
National Institute of Design, and the India Design Council,
featured a curated collection of CII Design Excellence Award-
winners, Indian iMark granted products, and MSME Design
Clinic Scheme-supported products. The exhibitors included top
design institutes and design firms from India.
Industries, start-ups, investors, and others participated in the
India Innovation & Entrepreneurship Showcase. These included
Tata Steel, RESCUW Earth Technologies and Advisory LLP,
Probus IOT Experience Centre, Green Farms Pvt Ltd, SenseHawk
Technologies, and the Entrepreneurship Development Institute
of Tamil Nadu, to name a few.
The India IP showcase featured the top IP owners of India,
including Reliance Industries Ltd, Vatta Smart Ltd, IIT Kharagpur,
IIT-Bombay and C-DOT, among others.
While the Higher Education showcase presented Indian
universities and institutes, a pavilion of Geographical Indications
(GI), organized in partnership with the DIPP, presented India’s
most potential GIs.
In addition to the exhibition, conferences and seminars were
held on Higher Education, Innovation and various aspects
and applications of Design, including Industrial Design, during
Knowledgexpo 2017.
FOCUS
Visitors at Knowledgexpo

Mindspace
economy
T
he Union Budget 2017-18 came at a time
when the economy is seeing a growth rate
exceeding 7% during this fiscal, despite global
turmoil. At the same time, inflation is down,
and the current account deficit is under control.
The progress to usher in the Goods and Services Tax
(GST) augurs well for future growth and inclusion.
While demonetization is expected to inhibit the Gross
Domestic Product (GDP) growth rate, this is not likely
to last beyond a quarter or two, as the underlying
fundamentals are largely positive.
Within this environment, Budget 2017-18 maintained a
path of fiscal prudence, and strengthened various drivers
of growth. As Mr Arun Jaitley, Minister of Finance, and
of Corporate Affairs, pointed out during the post-Budget
interaction with industry, the Budget is now less a
statement of income and expenditure and more
a policy document of the Government.
Our second lead story puts together various perspectives
on this annual financial exercise.
2017-2018

Mindspace
A
t a time of global uncertainty, India is emerging
with a clear strategic direction for its economy,
with considerable focus on governance. Fiscal
prudence is evident with the goal of a fiscal deficit
being pegged at 3.2% of GDP.
We see a significant boost to investment in rural areas,
a fillip to MSMEs, and continued focus on widening the
tax base and creating a more tax-compliant economy.
GST implementation is on track through the collaboration
of the Center and the States. CII looks forward to
its roll-out, which will be a key milestone in India’s
economic journey.
A recent CII-Maersk study highlighted that high indirect
cost of trade accounts for as much as 38-47% of
the total transportation and logistics costs, severely
undermining the country’s export competitiveness
for manufactured goods. The significant increase in
infrastructure investments by 14% to `3.96 lakh crores is
extremely welcome and would have a multiplier effect on
the economy, including employment, especially through
high spending in transport infrastructure pegged at `2.4
lakh crores. For the first time, the Railway Budget has
been merged with the General Budget, supporting
planning for a multi-modal transport strategy for the
country. The development of railway stations, creation
of a rail safety fund, rail energy efficiency measures,
airport modernization and land monetization, expansion
of airports in tier-2 cities and increase in expenditure on
roads will fast-track the infrastructure mission.
The total allocation for rural, agriculture and allied
sectors, up at 24% to a record `1.87 lakh crores, will
promote agriculture, which accounts for 17% of India’s
GDP and 50% of the country’s workforce.
The reform agenda continues, with the abolition of
the Foreign Investment and Promotion Board, and
agricultural market reforms. The move to clean up
funding for elections, including the innovative electoral
bonds, reiterates the Government’s commitment
The Budget takes several welcome steps forward and is fully consistent
with the policy agenda of the Government, says Dr Naushad Forbes
towards transparency and good governance. CII had
recommended reducing the cash donation limits, and
the Budget has curtailed such donations to `2,000.
The push for autonomy in higher education is the best
way to foster quality. I have always argued that combining
autonomy with competition is the best way to deliver
quality in education, and is much more powerful than our
previous attempts to regulate quality into the system.
Additionally, measures proposed for skill development
and building the apprenticeship scheme will go a long
way in strengthening the skill base in the country.
One important announcement was the creation of a
National Innovation Fund with a corpus of at least
`10,000 crores for boosting research and development
(R&D). At present, research in the higher education
sector is 0.04% of GDP, which needs to increase
tenfold to the global average of 0.4%. Similarly, private
sector investment in R&D, which is currently at 0.3%
of GDP, needs to increase fivefold to the global average
of 1.5%.
We would have liked to see lower corporate income tax
for all companies, given that large companies contribute
significantly to investment and employment. And, the
additional surcharge on high-income tax payers deviates
from the principle of honoring honest tax payers. We
also look forward to hearing details about how the time-
bound listing of CPSEs will be achieved, and how the
Arbitration and Conciliation Act of 1996 will be amended
to address PPP resolution.
Overall, the Budget is prudent and pragmatic. It takes
several welcome steps forward and is fully consistent
with the policy agenda of the Government. This year’s
excellent Economic Survey gives the direction not just
for the next year, but a vision for the next phase in
the country’s development. We look forward to many
more steps to fulfill that vision.
This article by Dr Naushad Forbes, President, CII, and Co-Chairman,
Forbes Marshall, appeared in the Business Standard on 3 February.
Prudent and Pragmatic

The Finance Minister delivers on his promise of ‘Transform,
Energize, and Clean’ in this Budget, says Chandrajit Banerjee
I
n Budget 2017-18, the Finance Minister has undertaken
a comprehensive exercise to accelerate the Indian
economy’s growth path. Major growth drivers have
been addressed in a strategy to stimulate domestic
consumption, raise public expenditure on infrastructure,
and encourage small and medium enterprises to assume
the reins of growth. For Indian industry, which has been
troubled by global economic developments, the Budget
comes as a soothing balm.
The key point to note about the Budget is that it
reinforces the commitment of the Government to
economic reforms. Staying on the path of fiscal
consolidation is important to reassure investors, keep
open the space for private sector investments, and
address future growth. The Budget works on this
effort by keeping the fiscal deficit at 3.2% of GDP
and promising to lower it further to 3% in the next
financial year. Importantly, the revenue deficit adheres
to the mandated level of 1.9% of GDP for 2017-18,
signifying that capital expenditure has been accorded
high priority.
Although the Finance Minister had announced the
lowering of corporate incomes tax rates from 30% to
25% two years ago, the Budget this year implemented
this historic reform measure by providing tax relief
to 96% of Indian companies. This one measure will
go a long way to revive the sentiments of the large
section of smaller companies that are major creators
of employment and wealth. A key benefit is that lower
tax rates would bring these companies on par with
prevailing rates in other emerging economies and help
in building their global competitiveness. We hope that
this would be extended to the remaining tax-paying
companies shortly.
The action on the personal income tax front is equally
encouraging, with the lowering of tax rates by as
much as half, from 10% to 5% for taxpayers earning
between `2.5 lakhs to `5 lakhs. The outcome of this
For India Inc,
A Soothing Balm
measure can be expected to incentivize consumption,
expanding the market for consumer products, and is
to be strongly welcomed.
The Government has also promised to build and
modernize infrastructure through a capex slated
at 25.4% higher than last year, which would build
further growth rivers. With the Railway Budget now
merged with the General Budget, the transport sector
has been taken up in a multi-modal manner. For
example, 2000 km of coastal roads are to be taken
up in the coming year, which would sync with port-
led development and rail hinterland connectivity. The
safety fund for the Railways, as also the listing of
key railway public sector enterprises, are progressive
measures, as is the intention to modernize 25 railway
stations. For airports, a key initiative is to place airport
operation and maintenance under the PPP mode for
tier 2 cities.
Affordable housing received high attention in the Budget,
recognizing its vital role as an engine of growth. The
real estate sector in India contributes about 5-6% of
the GDP, and it is important to increase this share
to provide housing for all and generate demand for
related sectors.
The Prime Minister, in his address to the nation on 31
December, had announced interest rate subventions
for housing loans, and the Budget takes this further
by allowing the sector infrastructure status. Further,
instead of built up area, the definition will now cover
carpet area of 30 and 60 sqm.
In addition to the infrastructure push, farmers and
the rural economy were prioritized in the Budget,
addressing the sectors where about 70% of India
resides. Credit and insurance schemes will be expanded
in a bid to reinforce the economic security of farmers.
A special fund is being created under NABARD for
micro-irrigation programs, and the move to deploy
MNREGA for ‘drought-proofing’ panchayats can add
Mindspace

In these turbulent times, the Budget
provides much-needed stability, with
a steadfast resolve to stay on the
reforms course, says Rajiv Memani
A Commendable
Balancing Act
to this effort. The proposed model
law on contract farming can be a
huge step in integrating farmers with
markets, and incentivizing corporate
investments in the agriculture sector.
Electrification of villages, higher
support for employment generation,
and strengthening of panchayati raj
institutions can transform lives in
rural areas.
The Budget also accorded high
priority to skill development which
will empower the burgeoning youth
workforce to contribute to economic
growth. ‘Sankalp’ is a new program
for livelihood promotion, aimed at
providing relevant training to 35 million
youth. Extending the Prime Minister’s
Kaushal Kendras to 600 districts will
imply wider outreach to youth across
the country, while establishing 100
India International Skill Centers will
make them globally employable. These
measures will work towards capacity
creation and productivity enhancement
for our workforce, as was strongly
recommended by industry.
For businesses, there has been an
emphasis on tax administration,
simplification and rationalization. The
Minimum AlternateTax is now permitted
to be carried forward for 15 years, and
start-ups may avail deduction for three
out of seven years, instead of five years
as was previously allowed.
Ease of doing business received
attention through various measures such
as transfer pricing changes, audit limit
enhancement, and extension of the time
limit for tax return revisions, a welcome
series of measures for business.
In general, through strategies regarding
political funding, digitalization of the
economy, and encouraging formalization,
the Finance Minister delivers on his
promise of ‘Transform, Energize, and
Clean’ in Budget 2017-18.
This article by Mr Chandrajit Banerjee,
Director General, CII, appeared in the Asian
Age on 2 February.
T
he emerging trends of increased protectionism and tax
competitiveness from developed economies, hardening crude prices
and a dynamic global interest rate environment are just some of
the tough external factors within which the Union Budget 2017-18 was
presented by the Finance Minister. In these turbulent times, the Budget
provides much needed stability with a steadfast resolve to stay on the
reforms course. The last four Budgets have shown consistent focus
on some fundamental aspects - widening the tax base, addressing the
menace of the parallel economy, improving the ease of doing business,
and strengthening the anti-abuse provisions. At the same time, the
Government has stepped up its spending on infrastructure and achieving
inclusive growth; all this, while maintaining fiscal discipline. The fine
balancing act is truly commendable.
Arguably the boldest proposal of the Finance Minister is the move to
bring transparency in electoral funding. Receipt of donations by political
parties by cheque or digital mode will alter the political funding landscape
completely.
The continued commitment to spend on infrastructure development,
including roads, highways and railways, is evident in the `3.96 lakh
crores spending allocated for 2017-18. Combined with this, the thrust
on affordable housing will spur economic activity and job creation.
Legislative reforms are also being contemplated for consolidation of
labor laws to foster a conducive labor environment.
The Budget estimates on the tax revenue front project a very conservative
scenario. After nearly 17% growth in gross tax revenues over the last
two years, this Budget estimates tax revenue growth of only 12.2%.
This leaves room for improvement in the aftermath of demonetization,
which can yield dividends directly from RBI’s balance sheet readjustments
and indirectly from bank deposits with the potential of formalization of
a part of the parallel economy.
There are many positive measures in the Budget, which seek to
improve ease of doing business in India and attract foreign capital.
Additional clarifications and review of some of the proposals would go
a long way in ensuring certainty and improving domestic and foreign
investments.
Mindspace

Mindspace
Measures to Attract Foreign Capital
Proposals such as the retrospective clarifications on
applicability of the indirect transfer taxation provisions
to Foreign Portfolio Investors, further FDI liberalization,
and abolition of the FIPB, are significant messages to
attract foreign capital. The proposal to curb the long
term capital gains tax exemption post introduction
of the Securities Transaction Tax (STT) in 2004 only
to cases where both the legs of acquisition and
disposal have suffered such STT is well-intentioned.
However, supplemental notification, exempting genuine
transactions from any unintended consequences of
this proposal, such as acquisition of shares through
IPO, FPO, bonus or right issue etc., should be issued
at the earliest.
Given that India is primarily an inbound economy,
we believe that the tax policies should support the
country’s growth agenda. For many MNCs entering
India, the preferred route is to use lending from
overseas (or guarantee-based borrowing within
India). In such an environment, the introduction
of the capitalization rules are likely to adversely
impact many subsidiaries of MNCs that operate in
India and have huge capital requirement, especially
in the infrastructure sector. The Government can
consider OECD’s suggestion to introduce a group
ratio rule in addition to a fixed ratio rule. Secondly,
it would be important to exclude the reference to
implicit guarantee, since it is not possible to prove
or disprove implicit guarantee. The computation of
the allowable interest as per current draft regulations
considers only interest paid to AE and not the
interest paid to third parties (under a guarantee
from an AE).
The Transfer Pricing (TP) Rules are proposed to be
amended to provide for secondary adjustment. While
secondary adjustments are a globally accepted principle,
the timing of its introduction and implementation in
India is likely to lead to an adverse situation for many
companies given the current turmoil and the policy
changes in the US. Secondly, many APAs have been
signed and companies may have agreed to a higher
margin in the APAs after factoring in the fact that tax
incidence will only be on the primary adjustments,
with no additional dividend distribution tax arising in
the future. It is suggested that existing APAs should
be protected from any further secondary adjustment.
Further, an option to remit or not to remit the amount
of primary transaction should be provided to the
taxpayer.
Progressive Tax Relief
The limited give-away on the tax front, in terms of
marginal relief to the low income group between
`2.5-5 lakhs, and 5% tax reduction to MSMEs is also
well-targeted, reaching out to the segment that has
been the most impacted due to demonetization. The
reduction in the corporate tax rate to 25% for MSMEs
with a turnover of less than `50 crores will provide
considerable relief to small companies and enable
them to expand their capacities. In the interest of
simplification, it is suggested that the MAT for such
companies be done away with. As acknowledged by
the Finance Minister himself, these companies do not
get many exemptions.
Tax Simplification and Certainty
It is heartening to note that many proposals that were
part of the Justice Easwar Committee on Income
Tax Simplification have been addressed – reassuring
taxpayers of a consultative approach which has
become a hallmark of the tax legislative process
recently.
The much-needed clarity on MAT applicability post
Ind AS adoption has been provided, building largely
on the recommendation of the Committee constituted
in this regard. The proposals are premised on the
basis that existing adjustments provided in MAT
computation shall be made to net profits before
other comprehensive income. The resultant will
be further adjusted as now proposed for items in
other comprehensive income, as also the transition
adjustments. The fair value adjustments that are
mandated through the profit and loss account in Ind AS
need further clarity. In such adjustments, both losses
and profits should be treated similarly if considered
eligible adjustments to distributable profits. This may
have been an inadvertent miss, considering that the
matter rests between the CBDT and the Ministry of
Corporate Affairs.
The Budget sends out key messages on continuity in the
policy of fiscal prudence and resisting counter cyclical
measures to artificially boost the economy, consistency
of purpose, boldness of reforms, and building certainty
in tax through a collaborative approach. The implicit
message cannot be missed by any serious foreign
investor seeking to place bets on the most promising
of developing economies.
Rajiv Memani is Chairman, CII National Committee on Taxation,
and Chairman, India Region & Emerging Markets Committee,
Ernst & Young LLP.

M
r Arun Jaitley announced two major policies
for the Indian MSME sector in his Budget.
The first is lowering the corporate tax rate
for enterprises with an annual turnover of up to `50
crores from 30% to 25%. Second, for small traders
with turnover up to `2 crores, the presumptive tax has
been lowered from 8% to 6%. Along with a number of
other key measures, the Budget this year provides high
encouragement to MSMEs, which contribute greatly to
employment in the country.
The Finance Minister also announced the doubling of the
target lending under the Pradhan Mantri Mudra Yojana
from `1.2 lakh crores during the last fiscal to `2.44 lakh
crores, to enhance funding to micro enterprises. An
increase in the allowable provision for non-performing
assets (NPA) from 7.5% to 8.5% for banks will encourage
accelerated lending to MSMEs, since a surge in NPAs
has been a crucial factor in their cautionary stance
towards lending to these enterprises.
Earlier, the Government had pledged to enhance the credit
guarantee limit to MSMEs under the Credit Guarantee
Fund Trust for Micro and Small Enterprises (CGTMSE)
Scheme from the current `1 crore to `2 crores, and to
increase the cash credit limit from 20% to 25% of the
turnover to enhance the availability of working capital
for MSMEs. All these policies will significantly lower the
financial burden for MSMEs, which are reeling under the
pressure of acute financial paucity.
In addition, the Finance Minister stated that the
surplus money in the banking system owing to the
demonetization of high currency notes has enhanced
the capacity of banks to lend at reduced rates, which
will lead to greater credit availability and lower borrowing
costs for all enterprises, including MSMEs.
Tax incentives and exemptions as well as reduced tax
rates for MSMEs have long been part of CII’s policy
advocacy agenda for the sector. CII welcomes the
new initiatives by the Government as they address the
unavailability of affordable and adequate credit and lack
of access to formal funding.
A strong proponent of simplified labor laws and
regulatory requirements for Indian MSMEs, CII also
welcomes the announcement to undertake legislative
reforms to simplify, rationalize and amalgamate the
existing labor laws into four Codes on (1) Wages;
(2) Industrial Relations; (3) Social Security and Welfare;
and (4) Safety and Working Conditions, to foster a
conducive labor environment in the country.
CII has also been stressing the need to conduct
awareness sessions to enhance the preparedness of
Indian MSMEs to transition to the GST regime. The
Government has announced the launch of extensive
reach-out efforts to trade and industry from 1 April
2017 to make them aware of the new taxation system
and its provisions.
In its representations to the Government, CII has
recommended the implementation of the revised
MSME definitions as per the MSME Development
(Amendment) Bill, 2014 and, additionally, considering the
implementation of a framework for MSME definitions
along the criteria of (1) turnover (2) number of employees,
and (3) investment, to bring these at par with the global
framework.
Key CII recommendations for the MSME sector also
include:
• Enhancing the limit of priority lending
• Low cost credit schemes
• Classification of NPAs for MSME to be 120 days
with a special dispensation of 30 days
• Dedicated equity funds for MSMEs
• Implementation of the Trade Receivables electronic
Discounting System (TReDS) for MSME bill
discounting
• Setting up of land banks as well as reservation of
space for MSMEs in industrial corridors, etc.
The Budget announcements will provide significant relief
to MSMEs and spur their growth. These measures bear
testimony to the importance ascribed by the Indian
Government to these enterprises. CII hopes that the
momentum can be sustained through a continuously
evolving policy environment, with more reforms to
address the needs and concerns of Indian MSMEs,
which form the backbone of the Indian economy.
The Budget provides high encouragement to MSMEs, which contribute
greatly to employment in the country
Mindspace
Giving MSMEs a Boost

S
enior officials
of the Ministry
o f F i n a n c e
shared their views
and comments on the
policy and direction
of the Union Budget
at CII's Post-Budget
Interactive Session
with the Ministry of
Finance, in New Delhi
on 6 February.
Mr Rajiv Memani, Chairman, CII
National Committee on Taxation,
and Chairman, India Region &
Emerging Markets Committee,
Ernst & Young LLP, congratulated
the Government on coming up
with an outstanding and prudent
budget, with the emphasis on
fiscal prudence, widening of
the tax base, ease of doing
business, and tax compliance.
He appreciated the reduction of
corporate tax rate for MSMEs,
saying that it would go a long
way in supporting the growth of
the sector.
Mr Memani requested the
Government to consider and
address the concerns of the
industry on various issues like
MAT, APA, GAAR, long term
capital gains, possible harassment
to tax payers and Operation
Clean money. “The Government
should reconsider the surcharge
proposed on incomes between
`50 lakhs and `1 crore, as the
move goes against the intention
to reward honest taxpayers. The
Government should consider
reducing the rate of surcharge to
5%, if not remove it altogether,”
he suggested.
Mindspace
'The Budget this year focuses on the clarity and certainty of the
tax laws, while at the same time endeavoring to make the country
more tax-compliant, and to honor honest tax-payers. The focus
areas for this budget are digitalization, demonetization, expansion
of tax base, and saving genuine tax payers from any harassment
from the taxman.
The Government would come up with any clarifications that might be
called for on any of the newly-introduced legislations, such as GAAR
and POEM.’
Sushil Chandra, Chairman, Central Board of Direct Taxes
‘Since the Government is committed to bringing in Good and Services
Tax (GST) with effect from 1 July, there are not many changes in the
area of indirect taxes. The changes that have been incorporated in the
Budget are largely in the areas of digitization, ease of doing business,
export promotion and anti-avoidance. The move to GST will be a
smart transformation i.e. Simple, Moral, Accountable, Responsible and
Transparent, and will radically change the indirect taxation scenario of
the country. The final GST law is expected to be in the public domain
by the end of March.’
Ram Tirath, Member - Budget and GST,
Central Board of Excise & Customs
‘The Government will save genuine tax-payers from any harassment
under the newly-launched Operation Clean Money, and will attempt
to address the concerns of industry on various issues.’
Sushil Kumar Sahai, Member - Income Tax,
Central Board of Direct Taxes
Ram Tirath, Member - Budget and GST, Central Board of Excise & Customs; Rajiv Memani, Chairman, CII
National Committee on Taxation, and Chairman, India Region & Emerging Markets Committee, Ernst & Young
LLP; Sushil Kumar Sahai, Member - Income Tax, Central Board of Direct Taxes, and Sushil Chandra, Chairman,
Central Board of Direct Taxes, at the Post-Budget Interactive Session in New Delhi
Policy and Direction

T
he Economic Survey 2016-17 prepared by the
Ministry of Finance under the guidance of
Dr Arvind Subramanian, Chief Economic Adviser,
included analytical chapters on matters of pertinent
interest regarding the Indian economy.
Affirming that the underlying fundamentals are
manifestly strong, the Survey pointed towards
relatively low inflation, robust agriculture growth,
moderate current account deficit, stable exchange
rate and fiscal discipline.
It provided a strong and
convincing template for
improving productivity and
efficiency while boosting
economic growth.
On fiscal consolidation, the
Survey advocated adherence
to the basic precepts of
fiscal prudence, maintaining
that giving a greater role to
counter-cyclical policies is less
relevant for India. It is notable
that the Budget presented
the following day adhered to
this precept.
C I I w e l c o m e d t h e
recommendation to incentivize
good fiscal performance
by the Indian States as a
means to keep the overall
fiscal deficit under check. CII
also welcomed the Survey’s
suggestions that the Center should lead the way in
sound fiscal management.
CII appreciated the Economic Survey’s suggestion
for political consensus on privatizing sectors such as
Aviation, Banking and Fertilizers. Spreading privatization
to other sectors should also be a priority, as it would
release resources for investment and improve the
management of the enterprises concerned.
Addressing the balance sheet problem of high and
rising NPAs in the banking sector was mentioned by
the Survey as an area of concern. The RBI focus on
getting banks to clean up their balance sheets must
be sustained until the exercise is completed.
The implementation of the Goods and Services Tax
(GST) would be a game-changer which would result in
a common market, improve tax compliance and help
realize the vision of ‘Make in India.' CII welcomed
the Survey’s recommendation
that real estate and land be
brought under GST.
The proposal of a Universal
Basic Income expounded by
the Survey for the first time is
an idea which needs serious
deliberation as a mechanism
to provide a certain minimum
living standard to all citizens,
and, as well, remove
inefficiency in the subsidy
system.
The focus on labor-intensive
sectors such as apparel
and leather to make them
globally competitive is timely.
Reforms in labor and tax laws
not only in these sectors but
in many others would lead to
greater job creation. CII has
recommended that the labor
reforms articulated in the
apparel policy to allow fixed term employment should
be replicated across sectors. The Budget followed up
on this to extend the apparel package to the leather
and footwear sector.
Industry is hopeful that the ideas articulated in the
Economic Survey would generate new discussion
points that could be implemented over the next few
years.
‘The Survey offers
innovative solutions
and new ideas for
the Indian economy.
It maintains cautious
optimism about the
c o u n t r y ’s g r ow t h
prospects with GDP growth poised
to touch 6.75% to 7.5% in the
coming year. Uncertainty related to
the impact of demonetization and
muted external economic conditions
would have an impact on the Survey’s
estimate.’
Dr Naushad Forbes, President, CII,
and Co-Chairman, Forbes Marshall
Mindspace
Economic Survey provides
Innovative Solutions, New Ideas

Building Capacity
CII Marketing Summit
The rise of search engines, social media, and the
mobile revolution has changed the marketing landscape
completely over the past few years. Consumers are
becoming increasingly fastidious and are using the
most convenient channel, expecting a more personalized
shopping experience. This was brought out at the
CII National Marketing Summit held in Mumbai on
30 January, with the theme ‘Digital, The New Normal
of Marketing.’
Consumer behavior has evolved over the decade, and
marketers have to cater to multi-screen, mobile and
socially-networked customers. Digital is at the core
of everything in marketing today, said speakers at the
Summit. Enterprises are investing large amounts in new
marketing tools to keep pace with customers in the
digital age with a major focus on product positioning,
social media, e-commerce, etc. Businesses that digitally
transform are able to connect more closely with
customers, speed up the pace of innovation and, as a
result, claim a greater share of profit in their sectors,
said prominent industry leaders.
CII-KPMG released a report on ‘Digital: The New
Normal of Marketing’ at the Summit. The report
Marketing
Thomas Varghese, Chairman, CII National Committee on Marketing, and
Business Head-Textiles and Acrylic Fibre, Aditya Birla Group; Rajiv Dube,
Director, Aditya Birla Group; Ganesh Mohan, Head of Strategy, Bajaj Finserv
Ltd, and Aditya Rath, Partner, and Head for Digital Customer, KPMG,
at the Marketing Summit, in Mumbai
brings out valuable information on Indian digitization
and the shift from traditional to digital marketing.
The report estimates that India is one of the fastest-
growing advertising markets globally, with an estimated
growth of 15.5% in 2016, driven by a large consumer
base and a burgeoning e-commerce industry.
Although the share of digital advertising spend
remains low, at 12.7% in 2016, it is one of
the fastest-growing mediums at an expected
CAGR of 33.5% (2015-2020) to cross `255 billion
in 2020.
The report says that connected devices, smarter
devices and ‘hyper relevant rich content’ will
drive consumption. Marketers will be well-served
if they are able to ride the data wave and use
technology to build analytical models. The digital
marketer will need to deliver a distinctive consumer
experience using various channels, thus becoming
a key contributor to the overall omni-channel
experience, it says. The report also offers insights
into nascent technologies like emotions analytics
and predictive marketing.
“The post-demonetization days have clearly shown
that the country is set to leapfrog a few stages to
embrace the power of digital. Mobile is being rapidly
adopted and marketers have an incredible opportunity
to enhance the game of digital communication
and deliver great customer experiences at each
point of the journey,” said Mr Thomas Varghese,
Chairman, CII National Committee on Marketing, and
Business Head, Textiles and Acrylic Fibre, Aditya Birla
Group.
“Digital marketing is more about big data and
technology innovation than conventional marketing.
Today’s digital marketer has to look at the consumer
as a living sensor which creates data. Insights on
consumer behavior will drive the next big innovation
on the campaign. Success will depend upon
how the digital marketer is able to drive differentiated
strategies for each digital channel and eventually
converge on consumer experience,” said Mr Aditya Rath,
Partner, and Lead for Digital Customer, KPMG.
More than 400 delegates attended the Summit with
representation across industry sectors, including FMCG,
wellness, automobiles and manufacturing, to mention
a few.

Building Capacity
Workshops on GI
CII, in association with the European Union Intellectual Property
Office (EUIPO), and the Indian Patent Office (IPO), Ministry
of Commerce and Industry, organized a series of training
programs –cum-workshops on Geographical Indications (GIs) for
producers, attorneys and advisors on 16, 18, 20 and 21 January,
in Kochi, Chennai, Vijayawada and Bengaluru, respectively.
The objectives of the programs were to exchange best practices
and cooperation in the field of IP, enhance the capacity of the
Indian productive sectors to create, protect and manage their
own IP; increase awareness among consumers on GI products,
and discuss how GI protection can be facilitated and leveraged
effectively. The aim was to increase the skill and capacity of
communities, officials of relevant departments, start-ups and
entrepreneurs, as well as advisors, trainers and facilitators
supporting GIs, and also sensitize stakeholders on how to use
GIs as a marketing tool.
The program drew more than 60 active participants in each
location.
IP AWAKE
CII, in association with the Indian Patent Office, Department of
Industrial Policy and Promotion, (DIPP), Government of India,
organized ‘IP Awake: Awareness Program on IPR & National
IP Policy’ on 21 January in Jabalpur. The session highlighted
the importance of IP in business, especially for MSMEs.
It also discussed IPR do’s and don’ts.
Intellectual Property
Training and Workshop on GIs in Chennai
Awareness Seminar on Intellectual Property Rights in Jabalpur

Societal Interface
C
II works towards promoting and
facilitating an enabling environment,
conducive for the inclusion of People
with Disabilities, within the corporate sector.
A National Committee on Special Abilities
anchors this agenda by galvanizing champions
from industry, conducting sensitization and
training programs, and facilitating corporate
sector response.
The Rights of Persons with Disabilities Bill 2014,
recently passed by both Houses of Parliament, is a
landmark decision towards ensuring equal opportunities
and accessibility to Persons with Disabilities (PwD).
The Bill has increased the provision to ensure that
PwD have barrier-free access in buildings, transport
systems and all kinds of public infrastructure, and are
not discriminated against in matters of employment
and education.
Highlights of the Bill
1. The Bill replaces the Persons with Disabilities
(Equal Opportunities, Protection of Rights and Full
Participation) Act 1995.
2. It covers 21 conditions, instead of 7 disabilities
specified in the earlier Act. Apart from listing these
disabilities, the Bill also lays down provisions to
allow the Central Government to notify any other
condition as a disability.
3. A person with 40% disability will be considered as
a PwD.
4. While the 1995 law had 3% reservation for the
disabled in higher education institutions and
government jobs, the 2014 Bill has raised this to
5%, adding 1% each for mental illness and multiple
disabilities.
5. The 2014 Bill has made violation of any provision
of the Act punishable with a jail term of up to
6 months, and/or a fine of `10,000. Subsequent
violations could attract a jail term of up to 2 years
and/or a fine of `50,000 to `5 lakh.
6. Constitution of a National Commission, State
Commissions, Central and State Advisory Boards,
and district-level committees for PwD.
Towards Inclusion of Persons with Disabilities
Implications for Industry
1. The Bill directs all establishments,
including the private sector, to notify an Equal
Opportunity Policy, detailing the measures
to ensure non-discrimination in any matters
related to employment, including promotion
and pay scale.
2. A copy of the Equal Opportunity Policy has to be
registered with the National Commission or State
Commission.
3. Establishments are to maintain records of PwD in
relation to their employment, and facilities provided,
in whatever form is prescribed by the Central
Government. The records shall be open to inspection
as required by the appropriate authority.
4. Establishments are to appoint a Grievance Redressal
Officer to address matters related to the employment
of PwD.
5. No promotion can be denied to PwD merely on the
ground of disability. No establishment can reduce
the rank of an employee who acquires disability
during his or her service.
6. The Bill mandates that all new buildings must
adhere to accessibility norms. Without this,
permission for constructing the building and
certificate of completion will not be provided by
the Government.
7. The Bill says that the Government must take
measures to ensure that all content available through
audio, print and electronic media is accessible to
PwD; and goods and equipment are designed as
per universal norms.
8. Service providers shall provide services in accordance
with accessibility norms within a period of two years
from the date of notification of such regulations.
9. The appropriate Government shall provide incentives
to employers in the private sector to ensure that at
least 5% of their work force is composed of PwD.
10. Failure to produce any books, accounts, other
documents or any information as directed by the
Bill, shall be punishable. Government to create a
special courts for speedy trials.

Building Capacity
CII SoccerFest
The CII National Committee on Sports is driving the
agenda to evangelize grassroot sports in India with
the vision of making India a sporting nation.
In this regard, the 4th
edition of the CII SoccerFest
was recently organized in New Delhi. The main
objective of this inclusive event was to create
awareness, develop grassroots football, and connect
and involve the key influencers for football within the
Indian corporate world. The CII Soccer Fest included
16 women teams, 16 boys’ teams, 32 men’s teams
and 8 disabled athlete teams.

Curtain Raiser
I
ndia’s knowledge-
driven service
s e c t o r i s
extremely critical
to the development
trajectory of the
e c o n o m y. T h e
digital platform for
service delivery is
an important step
in achieving this and
India should leverage
the demographic
dividend it enjoys,
stated Ms Nirmala
Sitharaman, Minister
of State (Independent Charge) of Commerce and
Industry, addressing the Curtain Raiser for the Global
Exhibition on Services (GES) 2017, to be held from 17-20
April in Noida, on 24 January in New Delhi. The GES
has attained the stature of an annual flagship event to
augment international trade in services not only for India
but for many countries in the world, she said.
Ms Sitharaman said India will soon submit a proposal
for a Trade Facilitation Agreement (TFA) in Services at
the WTO, to initiate discussions on this topic before
the WTO ministerial meeting, and at the Buenos Aires
ministerial in particular. India has already floated the
concept note for this, and is now “moving further
towards a proposal,” said the Minister.
The services sector constitutes a huge segment of the
value added to the GDP of the economy. The significant
growth of FDI signals the increasing interest of Indian
services globally, said Ms Rita Teaotia, Secretary,
Ministry of Commerce and Industry. The services
sector, she added, provides resilience to cushion the
economy against the cyclical economical risks that have
been witnessed in recent years. However, to maintain
growth and quality, we need to align Indian services
to world standards, she stressed.
Earlier, in his welcome remarks, Mr Chandrajit Banerjee,
Director General, CII, observed that the center of
gravity of global growth has moved to Asia. India
is regarded as a country with high potential, with
its economy now on the fulcrum of a high growth
trajectory. The landscape of the services sector in
India is also going through significant transformation
heralding a new paradigm of growth and development,
he said. CII this year will be working very closely with
each of the Indian States on their preparedness to
enhance service exports vis-a-vis their potential through
a wide array of advocacy and knowledge programs,
said Mr Banerjee.
The 3rd
edition of GES will build on the success of the
preceding events.This year, 20 sectors are being tapped
as compared to 17 sectors earlier. The new areas being
unveiled are Retail and E-Commerce, Sports Services
and Railway Services.
Spread over 42,000 sqm, GES 2017 will also host new
initiatives, such as a festival of Indian cuisine, drawing
attention to the high-growth and high-return potential
of India’s food sector.
Services data released by the Reserve Bank of India
(RBI), shows that services exports have retained a
significant absolute level of over $150 billion, reflecting
many years of sustained performance and growth,
despite the marginal dip last year in the face of the
global slowdown. It is, however, heartening that the
bleak global trade scenario in recent years appears to
be improving, with provisional numbers released by RBI
for the current financial year pegging service exports
for April to September 2016 at $80 billion, a rise of
almost 4% from the $77 billion for the corresponding
period of the previous fiscal.
3rd
Global Exhibition on Services to
showcase 20 sectors
Anup Wadhawan, Additional Secretary, Ministry of Commerce & Industry; Rita Teaotia, Secretary, Ministry of
Commerce & Industry; Nirmala Sitharaman, Minister of State (Independent Charge), of Commerce & Industry;
Chandrajit Banerjee, Director General, CII, and Sudhanshu Pandey, Joint Secretary, Ministry of Commerce &
Industry, at the Curtain Raiser of the Global Exhibition on Services (GES), in New Delhi

Engaging with the World
A
125-member strong Indian delegation, comprising
senior Ministers, high-ranking Government
officials, CEOs of major Indian companies, and
media and civil society representatives, participated
in the 47th
Annual Meeting of the World Economic
Forum (WEF) in Davos-Klosters, Switzerland, from
17-20 January.
The Indian contingent was the 5th
largest, part of
the 3,000-strong community
that included over 50 heads
of state or government, key
finance, foreign, trade and
industry ministers, governors
of central banks, and 1500
business leaders, along with
religious, media, and cultural
leaders, social entrepreneurs,
and heads of non-governmental
organizations, from around 90
countries.
CII was the lead coordinator
for the Indian industry participation at the meeting,
held under the overarching theme of ‘Responsive and
Responsible Leadership.’ CII, as well as several Indian
companies, organized events on the sidelines of the
event. CII held its traditional annual ‘India Reception’ and
an India breakfast session. It also collaborated with the
Department of Industrial Policy and Promotion (DIPP) for
the ‘Make in India’ Lounge, and with the Government
of Andhra Pradesh for an Investment Roundtable.
Mr Nitin Gadkari, Minister of Road Transport and
Highways, and Shipping; Ms Nirmala Sitharaman,
CII@DAVOS 2017
Minister of State (Independent Charge) of Commerce
and Industry; Mr N Chandrababu Naidu, Chief Minister
of Andhra Pradesh; Mr Amitabh Kant, CEO, NITI Aayog;
Mr Ramesh Abhishek, Secretary, DIPP; and Mr Kamal
Nath, Member of Parliament, participated in the Annual
Meeting, along with senior officials.
The Indian industry delegation included Dr Naushad
Forbes, President, CII, and Co-Chairman, Forbes Marshall;
Mr Rahul Bajaj of Bajaj Auto;
Mr N Chandrasekaran of the
Tata Group; Mr Baba Kalyani of
Bharat Forge, Mr Nadir Godrej
of the Godrej Group, Mr Sunil
Bharti Mittal and Mr Rajan Bharti
Mittal of Bharti Enterprises,
Mr Uday Kotak of Kotak
Mahindra, Mr Dhruv Sawhney
of Triveni, Ms Arundhati
Bhattacharya of SBI, Mr GM
Rao of GMR Group; Mr Shashi
Kiran Shetty of All Cargo
Logistics; Mr Tulsi Tanti of Suzlon; Mr Pranav Adani of
Adani Group; Mr Nikhil Meswani of Reliance Industries;
and Mr Chandrajit Banerjee, Director General, CII,
among others.
Over 75 CEOs participated in the CII-BCG breakfast
session titled ‘India and Emerging Markets in the New
Phase of Globalization.’ The discussion revolved around
two fundamental questions. First, what has driven the
superior performance of India, and second, can India
maintain its position in the upper end of performance
and sustain the growth story of emerging markets?
Dr Naushad Forbes; Chandrababu Naidu, Chief Minister of
Andhra Pradesh, and Chandrajit Banerjee,
at the CII-Andhra Pradesh Roundtable at Davos 2017
Chandrajit Banerjee, Director General, CII; Hans-Paul Buerkner, Chairman, BCG; Nirmala Sitharaman, Minister of State (Independent Charge) of
Commerce and Industry; Nitin Gadkari, Minister of Road Transport & Highways, and Shipping; Dr Naushad Forbes, President, CII, and
Co-Chairman, Forbes Marshall, and Arindam Bhattacharya, Senior Partner (India), BCG, at the breakfast session on ‘India & Emerging Markets
in the new Phase of Globalization,’ during the WEF Annual Meeting in Davos

CII Communique February 2017

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (14)

Similar a CII Communique February 2017

Similar a CII Communique February 2017 (20)

Más de Confederation of Indian Industry

Más de Confederation of Indian Industry (20)

Último

Último (20)

CII Communique February 2017