India’s partnership at Messe Hannover was indeed a great success

Strong Indian contingent led by the Prime Minister was able to clearly leave a powerful message for the Global Manufacturing Industry – to look at India as a major investment destination and the place to do business.

Hon’ble Prime Minister, Shri Narendra Modi and Her Excellency Chancellor of the Federal Republic of Germany, Angela Merkel addressing the audience at the Hannnover Messe

Mr Sumit Mazumder, President, CII with Hon’ble Prime Minister Shri Narendra Modi and Her Excellency Chancellor of the Federal Republic of Germany, Angela Merkel

The Make in India campaign was extremely well demonstrated through a truly world-class display at the Messe – particularly at the India pavilion. The city of Hannover also had the ‘Indian lion’ all around wrapped with messages from India.

The Prime Minister assured investors at the gala opening of the Hannover Messe that India will do its part – as an anchor of economic stability; an engine for growth; and, as a force of peace and stability in the world. He invited investors to do business and make in India – for India and the world.

The German Chancellor stated that “We have seen excellent examples of Indo-German cooperation at the Hannover Messe. We have also seen potential for growth, especially for German companies already present in India who wish to expand.”

The Ministry of Commerce and Industry led brilliant display and clear message hit home with German Investors by branding the Make in India slogan of the Government of India in a widespread manner in Germany.

Honble Minister of State for Commerce and Industry , Smt Nirmala Sitharaman at CII Pavilion at Hannover Messe

Hon´ble Minister of State (Independent charge) for Commerce and Industry at the Seminar on “Investment Opportunities in Andhra Prades”

Mr Rajeev Kher, Commerce Secretary, Government of India at CII Pavilion at Hannover Messe Also seen are Mr Sumit Mazumder, President, CII, Mr Chandrajit Banerjee, Director General, CII, Dr Naushad Forbes, President-Designate, CII and Mr Deep Kapuria, Chairman, Trade Fairs Council

Hon’ble Chief Minister at the Seminar on “Investment Opportunities in Maharashtra” on 13 April 2015 at Hannover Messe, Germany. Also seen are Mr Sumit Mazumder, President, CII; Mr Apurva Chandra, Principal Secretary-Industries, Govt of Maharashtra; Mr Chandrajit Banerjee, Director General, CII; Mr Subhash Desai, Industries Minister, Govt of Maharashtra; Mr Anand Kulkarni, Additional Chief Secretary-PWD, Govt of Maharashtra (R-L)

Mr Madan Mohan Mittal, Hon’ble Minister for Industries & Commerce, Technical Education & Industrial Training and Parliamentary Affairs, Government of Punjab addressing INVEST PUNJAB at Hannover Messe: Germany.

 

The Make in India Lion was hard to miss in Hannover. The Lion was spotted at the airport, on buses, on taxis as well as other key vantage points in the city as well as the Fair grounds.

 

 

 

 

 

Constructed by the Department of Industrial Policy and Promotion (DIPP), the India Pavilion projected India’s brand image by incorporating many of the key sectors of the Make in India campaign.

 

During a visit to the fair, the Indian Prime Minister showed the German Chancellor the strengths of India which was so well captured in this special section of the India pavilion. The Indian Commerce and Industry Minister accompanied the two leaders during the visit.

Indian industry also did not lag behind. A strong 40 member CEO’s delegation led by Mr, Sumit Mazumder, President, CII participated at the event. 350 Indian companies including the Tata Group, Reliance, Bharat Forge, State Bank of India and the Kirloskar Group showcased their strengths at Hannover Messe. CII also set up 3 stalls at Hannover Messe, Germany to showcase Brand India at the global event highlighting the industrial growth and business opportunities in the country.

(L-R) Mr Virendra Gupta, Deputy Director General, CII; Mr Deep Kapuria, Chairman, Trade Fairs Council; Dr Rajan Katoch, Secretary Heavy Industries, Ministry of Heavy Industries and Public Enterprises; Mr Vishvajit Sahay, J S Heavy Industries, Ministry of Heavy Industries and Public Enterprises at CII Pavilion at Hannover Messe

Mr. Cyrus P Mistry, Chairman, Tatasons at CII Pavilion at Hannover Messe on 13th April 2015. Also seen are Mr Sumit Mazumder, President, CII, Mr Chandrajit Banerjee, Director General, CII and Dr Naushad Forbes, President Designate, CII

 

CII President, Mr Sumit Mazumder in an interaction with Hon’ble Prime Minister, Shri Narendra Modi

The Indo German Business Summit co-organised by BDI-CII was very well attended especially by the CEOs of prominent German companies.

Hon’ble Prime Minister, Shri Narendra Modi addressing the gathering at the Indo-German Business Summit 2015

Her Excellency Chancellor of the Federal Republic of Germany, Angela Merkel addressing the Indo-German Business Summit 2015

 

 

 

 

 

 

 

 

It was indeed most encouraging to have the Prime Minister and the Chancellor address this business session.

Hannover Messe saw participation from 13 States and the North-East of India – they put up their displays to show-case a very healthy competitive India and how they have been attracting business and growing.

Some States had special sessions. Maharashtra CM made a strong pitch for investors to look at Maharashtra. Very well received. Some iconic international brands spoke strongly about the state’s industry-friendly attitude to a global audience.

The Commerce and Industry Minister spoke on the strengths of Andhra Pradesh as a potential investment destination. This added weight to the AP story. AP demonstrated how they are going about in building a powerful state.

The special session on ‘Make in India’ – Secretary, DIPP made an excellent presentation and many of the queries from the potential investors were answered.

Her Excellency Chancellor of the Federal Republic of Germany shaking hands with Mr Sumit Mazumder, President, CII at the Indo-German Business Summit

Overall mood and approach towards India very positive by Germany, other participating countries and also Industry from several other nations.

A high-powered Indian CEOs delegation from CII well supported the dynamic Government team led by Hon’ble PM.The best and a proud display and performance by India.  Kudos to Team India.

Mr Chandrajit Banerjee
Director General, CII

Culture, Commerce and Connectivity to be the hallmark of India’s relation to the CLMV Countries: Ms Nirmala Sitharaman

Culture, Commerce and Connectivity will be the hallmark of India’s relation to the CLMV Countries. This was stated by Ms Nirmala Sitharaman, Minister of State for Commerce & Industry, Government of India. The Minister was speaking at the 2nd India – CLMV Business Conclave, “ASEAN – India Economic Engagement: The Way Forward” organized by CII and the Department of Commerce, Ministry of Commerce and Industry here today.

 

 

 

According to the Minister, India’s Look East Policy had become more a more focused “Act East” Policy. There was now a greater stress on action and specific projects to help integrate with the Asian region.

The Minister mentioned that the threshold to the CLMV region was India’s North East and the government was taking steps to promote the development of this region as well as its connectivity to the CLMV countries.

The Minister pointed out that India-CLMV trade was concentrated in only a few items and there was tremendous scope to deepen and widen the trade basket. The Minister mentioned that several sectors hold potential for trade and investment between India and the CLMV countries. These included skill development, agricultural products, manufacturing, project exports, energy among others.

On the wider India – ASEAN relationship, the Minister mentioned that the government was aiming to increase India-ASEAN trade to $100 bn by 2015 and to double it to $200 bn by 2020. According to her, this would only be possible through greater connectivity with the region and this required improved road, rail and sea links. The Minister stated that the various infrastructure projects undertaken to improve connectivity were now under advanced stages of completion and the focus would now shift to the creation of soft infrastructure.

 

In his address, Mr Rajeev Kher, Commerce Secretary, Department of Commerce, Ministry of Commerce & Industry stated that India’s trade with the CLMV region amounted to USD 13 billion in 2013-14. Much of that trade, he observed, was with Vietnam. He felt that there was tremendous scope to expand trade relations with the other countries in the region.

Mr. Kher highlighted the need to establish regional and sub-regional value chains in order to maintain and sustain long-term economic relationship with the region. He stated that India industry could partner with businesses in the CLMV countries to reach out to newer markets. He felt that by joining forces, Indian and CLMV industry could take advantage of the trade agreement architecture that the CLMV countries have to access newer markets.

 

The Commerce Secretary stated that the Government was proposing to set up an SPV to promote investments by Indian business in CLMV region. According to him, Indian industry could take advantage of the Lines of Credit and Buyers Credit schemes to promote project exports into the CLMV countries.

According to Mr. Ajay Shriram, President, CII stated that connecting the CLMV countries with India can yield numerous benefits. These include larger markets can bring about economies of scale in production and enhance competitiveness. Integration of markets can facilitate the movement of production networks and attract more foreign direct investment (FDI) along with the benefits of knowledge and technology transfer and opportunities to connect to regional and global supply chains. He pointed out that sectors such as skill development, agricultural products, manufacturing, project exports, energy hold tremendous potential to boost trade and investment between India and the CLMV countries.

According to Mr Sanjay Kirloskar, Deputy Chairman, CII (Western Region) and Chairman & Managing Director, Kirloskar Brothers Ltd., India and CLMV, as fast developing Asian regional economies, were facing identical political and business environment in the region. The two regions would certainly benefit by cooperating with each other in the emerging global economic order.

Earlier, welcoming the participants, Mr. Chandrajit Banerjee, Director General, CII stated that Indian industry looks forward to adoption of Regional Comprehensive Economic Partnership,. He felt that this would help promote greater regional integratrion with ASEAN and in particular the CLMV countries.

Green Climate Fund needs to gain momentum to address climate change concerns

The momentum of economic development globally has led to disturbing inequities that are now beginning to threaten the environmental balance in the world, Secretary, Ministry of Environment, Forests and Climate Change, Mr Ashok Lavasa said at the CII Annual Climate Change Conclave on “Strategic And Policy Initiatives and the Way Forward”, here today. Striking a cautious note he said that one such initiative, the Green climate Fund, has still to gain traction despite commitments by developed countries.

 

Speaking to industry leaders and experts in the climate change space, Secretary Lavasa said that there was an urgent need to address the inequity issue which requires huge resource deployment. “The Green Climate Fund which was set up has not witnessed much traction wih only about $10 billion in the pool vis-à-vis a commitment of $100 billion annually. This support is critical to address climate change,” he added.

Emphasising the need to raise financial resources, he said, “the requirement of resources is of the order of several billions of dollars. While a combination of budgetary resources, market friendly schemes and promoters’ own resources are being utilized, it is also critical to raise resources globally. This is important if developing and least developing countries are to achieve their development goals.

Speaking on the growing need of resources Mr Lavasa said; “According to the recent findings of the Intergovernmental Expert Group under the United Nations, “almost $66 billion of financial resources are required annually in case development has to take place and inequities minimized. Similarly for infrastructure an estimated $8-10 trillion are needed annually if deficiencies are to be bridged.”

Outlining some steps that the Government and industry have taken, he said, “In India, a number of initiatives are ongoing under the National Action Plan on Climate Change. In fact, several of these initiatives have been converted into National Missions which are at different stages of implementation. The National Mission on Enhanced Energy Mission has been a lynch pin of this entire effort and the industry has played a positive and constructive role in fulfilling the goals of this Mission. The Government is now looking at expanding the scope of this Mission. The National Solar Mission is also another very key programme of the Government where the target has been increased from 20 GW to an ambitious 100 GW. As part of the National Green Mission, huge tracts of land will be taken up under the afforestation program. The Government is now working to create models which will enable private sector participation. Clearly, these initiatives demonstrate efforts to address climate change.

Looking at national interest beyond the global negotiations, Dr Ashok Khosla, Chairman, Development Alternatives, said, “To attain a sustainable growth decoupling is the only answer where with the growth in GDP the use of resources decline. Though there have been indications that there has been some degree of relative decoupling but what we need is absolute decoupling. While a developing country like India can look at undertaking relative decoupling but it is critical for industrialized countries to find ways to absolute decoupling and resource use decline in absolute terms. Since business as usual is not possible, there is a need for structural transformation with innovation in technology & institution and change in human behavior.”

Elaborating on some possible mechanisms that could be considered, Mr Sunil Wadhwa, Co-Chairman, CII Climate Change Council and Managing Director, IL&FS Energy Development Company Ltd said, “If the impact of development on the environment has to be shared equitably, then globally, we can look at putting in place a carbon tax similar to what is in place in India in the form of the National Clean Energy Fund. This will ensure that the end consumer pays. On the solar front, the Government has set an ambitious target of 100,000 MW by 2020. While there is potential in India to do considerably more, storage technologies would become critical. Given the context of equity, can developed countries provide storage technologies for India. Not many green initiatives will have a business case and therefore carbon markets need to be revived. Globally, there is a need to look at the Clean Development Mechanism. In addition, in India, per capita emissions should be the yardstick till 2040/2050 and beyond that India could look abatement in absolute terms.”

Further discussing on how global companies doing business in the defence sector in India could offset their obligations, he said, “We could look at how the offset obligations of these companies can be converted to an obligation to do green business in India, particularly in manufacturing clean technology devices or solar panels and also generate employment.”

Speaking on progress in this segment, Mr Subodh Kumar Agarwal, Executive, Programmes, Friedrich-Naumann-Stiftung fur die Freiheit, said, “Solutions need to be a balance between economic and ecological concerns. The private sector can play a significant role to address the energy concerns by providing market based solutions without being further detrimental to the environment.”

Mentioning CII’s role in this area, Seema Arora, Executive Director, CII-ITC Centre of Excellence for Sustainable Development said, “CII has been working in the area of sustainable Development and through our Green Building Centre, we now have helped create a footprint of over 2 billion square feet in green buildings. We have also worked closely with the Government to make the environment and clearance procedure more streamlined. Industry plays a very positive role as a solution provider for mitigating climate change. On the global negotiations front, while both Lima and the run up to Paris will be important, it is the road beyond Paris that will be extremely critical.”

 

“India and United States need to find creative solutions to issues impeding India US Trade Relations” Ambassador Michael Froman, USTR

At a closed door round table with a senior industry group from the Confederation of Indian Industry, US Trade Representative, Ambassador Michael Froman highlighted issues relating to Intellectual Property Rights protection, local sourcing norms, regulatory challenges and mobility of high skilled labor. He stressed on the high standards for IPR being adopted by the Trans Pacific Partnership (TPP) negotiations and suggested that as an innovative economy, India needs to look at IPR norms more closely. At the same time, he suggested that collaborative and creative solutions need to be explored by both countries to address and resolve issues where this is no agreement. Ms Kathleen Stephens, US Ambassador to India, also participated in the meeting.

Ambassador Froman further spoke of US President Obama’s recent executive order on immigration which will benefit H1B workers and their spouses, many of whom are from India. He expressed hope that the President’s action will help ease concerns of Indian companies with regard to challenges in high skill labor mobility with the US.

On the Indian side, the interaction was led Mr Ajay S Shriram, President, CII; Mr Sumit Mazumder, President Designate, CII; and Mr Chandrajit Banerjee, Director General, CII.

Senior representatives from Indian companies spanning diverse sectors such as pharmaceuticals, technology, financial services, engineering and automotive sectors raised some of the major issues and challenges faced by Indian companies in doing business with and in the US. Specific issues raised included the lapsing of Generalized System of Preferences (GSP) by the US Congress which is having a detrimental impact on Indian SMEs; the challenges faced by Indian generic pharmaceutical companies with regard to the USFDA; the upcoming BASEL III norms on bank capital adequacy which will negatively impact financing for trade by SMEs and onerous restrictions on SMEs imposed by the North Atlantic Free Trade Agreement (NAFTA).

Referring to FDI caps on various sectors, Mr.Ajay Shriram, President CII said “the Government of India is committed to opening up the Indian economy—we have already seen this with the defense sector and expect the trend to continue in other areas also”.

Mr Chandrajit Banerjee, Director General, CII further expressed satisfaction on the resolution of the impasse at WTO and said “CII is extremely pleased that India and the United States have come to an understanding with regard to Trade Facilitation and Food Security.”