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

Recovery in Manufacturing Growth Slow but Steady : CII ASCON Survey

   15% Manufacturing Growth Y-o-Y  an Imperative to Achieve a 10% Economic Growth : Amitabh Kant

The CII ASCON Survey for the July-September 2014 quarter was released at the CII Associations Council Meeting in New Delhi on 5^thDecember 2014.   The Survey for July-September 2014 quarter indicates that the economic growth has picked up with more number of sectors showing positive growth trends in the July-September quarter 2014 as compared to July-September 2013.  Although the expected growth resurgence is still elusive, industry feels that with government’s focused efforts to bolster investments in manufacturing, the growth is inevitable.

The CII ASCON Survey, which tracks the growth of industrial sector on a quarterly basis, based on feedback received from sectoral industry associations, shows that out of 59 sectors surveyed, the number of sectors reporting ‘excellent’ and high growth (>10 %) has shown an increase from 26.08% in 2013 to 30.4% in July-September 2014.   At the same time, number of sectors registering ‘low’ and ‘negative’ growth for July- September 2014 quarter has marginally gone down from 73.90% in 2013 to 69.48% in July-September 2014.

The Survey categorises the growth range in four broad categories, namely excellent (>20%), good (10-20%), low (0-10%), and negative (less than 0%).

The disaggregated analysis of the Survey reveals that most of the high and excellent growth has been registered by segments of white goods, synthetic fiber, consumer non-durables such as imported oils, groundnut oil, rape seeds, along with machine tools and rubber machinery, etc.

The Vehicle industry has witnessed a low to negative growth in most of the segments such as passenger cars, commercial vehicles, utility vehicle, tyres, etc. However, two wheelers and three wheelers have registered excellent growth.

Segments of White Goods industry such as refrigerators, air conditioners, small appliances have registered about 12%-15% high growth rate.  The LCD/LED segment has been witnessing a boost and growth has been exceptional pegging above 20% mark. The rural purchase trends and sales in tier 4 & 5 cities have contributed significantly to this growth.

The Basic goods sector, this time again, has registered low growth with major segments like steel, fertilizer, paints, pig iron, and cement registering growth between 0-6 percent on an average.

The intermediate goods sector after a prolonged period has shown positive growth trends. Segments such as power cables, circuit breakers, have grown between 10-20%. Other segments such as motors, ball and roller bearings, capacitors continue to record a low growth.

Later interacting with CII affiliated sector associations, Mr. Amitabh Kant, Secretary, Department of Industrial Policy and Promotion, Government of India stated that for economy to grow at 9-10%, manufacturing has to grow at 14-15% every year.   Countries such as Japan, Korea, China have emerged as leading global economies only by building a strong manufacturing base.  India, too has to create a strong manufacturing environment to come out of the present economic shackle.

On the issue of inverted duty structure raised by many industry associations, while assuring DIPP support,   he appealed industry associations to come out with a detailed analysis with strong facts and figures.

Earlier, Dr. Rajan Katoch, Secretary, Ministry of Heavy Industries, Government of India stated that the Department of Heavy Industries has formulated a scheme for enhancement of competitiveness of the capital goods sector.    Under the scheme an outlay of Rs. 930 crore has been sanctioned.  The scheme, on its implementation, would attempt to make the Indian capital goods sector globally competitive. The sub sectors of Capital Goods covered under the scheme are mainly for Machine Tools, Textile Machinery, Construction and Mining Machinery, and Process Plant Machinery. The proposed scheme addresses the issue of technological depth creation in the capital goods sector, besides creating common industrial facility centres.

During the interaction, the representatives of the sectoral associations shared their views on making their respective sectors globally competitive, attract investments, develop technological and R&D capabilities and exploit opportunity and image created by the the “Make in India Campaign”.  The associations also shared their concerns regarding the inverted duty structures, FTAs, highly graded tax structures, etc.

“There is an optimistic sentiment within the industry, with a strong confidence in new initiatives. The results of the ASCON Survey for this quarter are encouraging.   30.4% sectors have grown in the range of 10% and above mark.   Though the industry still feels that the complete rebound of manufacturing will take time, the government’s focus on Ease of Doing Business, Good Governance, Investments specifically inbound new investments will be the key areas eventually leading India towards becoming a strong manufacturing base.” said Mr Chandrajit Banerjee, Director General, CII.

 

Make in India: A New Deal for India’s Manufacturing Sector – CII President

Ajay Shriram, President, CII

The CII President, Mr. Ajay S Shriram, welcomed the launch of Make in India (MII) by the Prime Minister, calling it a new deal for India’s manufacturing sector. He said that the initiative to ease procedures and welcome investment into the sector had been taken at the right time. It is the only way to generate employment for the large pool of young people joining the labour force every year. As mentioned by the Prime Minister, the purchasing power of the people can be enhanced and demand created only if they have employment opportunities.

CII endorses the idea that security of investment and consistency in policies are most important for developing the trust of investors. The assurance given by the Prime Minister that the centre and states will work as a team is important for industry. His emphasis on self-certification will go a long way in reducing difficulties for businesses.

The Prime Minister’s emphasis on skill development and mapping of skills to industries is an important endeavour that must be pursued. CII has taken many initiatives in this area and trained many workers with specific skills across sectors by adopting ITIs and developing skill gurukuls.

Another new idea in the PM’s speech was that India is ideally placed to Look East and Link West. This will help products manufactured in India to enter the global value chain. It is interesting that the PM has equated FDI to the notion of First Develop India. Digital India should lead to much better governance that will help India improve its rank in the Ease of Doing Business.

The CII President also welcomed the emphasis on ease of doing business by Commerce and Industry Minister Ms. Nirmala Sitharaman.

The repeated mention of “Ease of Doing Business” is very heartening, since CII has taken this up as its priority in our advocacy with the Government and we are grateful that the Government has been receptive to the various suggestions, said Mr Shriram.

Positive Industrial Growth Brings a Ray of Hope to Manufacturing Sector

After a prolong period of declining growth and sluggish investment, the industrial activities seem to be picking up and green shoots in manufacturing sector are finally visible.

The CII Associations’ Council Meeting concluded on 6th August 2014 in New Delhi released the findings of the ASCON survey conducted every quarter and presented the growth of the industrial growth for the April-June 2014 quarter.

The Survey indicates that the industrial activity in the country has posted a positive growth. This is a clear shift from the growth trends witnessed during the last quarter (Jan-March 2014), which presented a dismal industrial growth.

The positive growth in important sectors within the consumer durables including the vehicle industry, white goods industry, recording a growth between 5% – 10%, have largely been responsible for improving the overall industry growth. Sub sectors such as tablets, LED’s and LCD’s, smart phones have achieved phenomenal growth of above 20%. The passenger car segment also, for the first time in last two years, has grown between 5-10%. However, core sectors continue to remain under stress lying in the low growth category. The capital goods sector too, has shown stability in its growth (0%-9%), which also improves the overall industry sentiment.

The CII ASCON Survey categorises the growth range in four broad categories, namely excellent (>20%), good (10-20%), low (0-10%), and negative (<0%) and for this quarter covered 111 industry segments.

According to the survey, number of sectors showing high & excellent growth (10% and above) have increased from 15 in last quarter in Jan-March 2014 to 24 (21.42% of the overall industry segments surveyed) in the quarter April-June 2014.

Commodities such as LEDs/LCD, tablets, air conditioners, smart phones, sugar, ground nut oil, DAP and NP/NPK have shown excellent growth i.e. above 20 percent. Commodities such as 2 wheelers, motorcycles, refrigerators, washing machines, scooter tyre, tractor tyre, rubber hose, rape seeds and mustard seeds, biscuits, domestic cargo, fertilizer, industrial valves, nylon tyre yarn have recoded a growth between 0%-9 percent.

There is no change in the number of sectors that have registered a low growth rate (0-10%. 58 industry segments (51.78% of the overall industry segments surveyed) have reported a low growth rate (0-10 percent) in April-June 2014.

Commodities such as passenger vehicles, utility vehicles, tractors, textile machinery, industrial gases, Motors (LT), capacitors, Nylon filament yarn, machine tools microwave ovens, audio home theatre, personal computer, bus & truck tyre, industrial tyre, float glass, rubber footwear, drug pharma, alcoholic beverages, electricity, etc have fared low growth (0%-9%), whereas commodities such as commercial vehicles, newsprint, crude oil, power cable, auto component, pumps, energy meters, etc have registered a negative growth.

The good growth of automobile industry is driven by the excise duty cuts announced during the interim budget and its extension during the recent budget of the new government. The excise duty stimulus also comes as a respite to the capital goods sector as well as the white goods sectors.
In spite of overall marginal positive growth, 30 industry segments (26% of the overall industry segments, surveyed) continue to have a negative growth rate, a cause of worry. Further, core sectors such as steel, cement, natural gas, crude oil continue to remain under stress and in the low – negative growth category for the 5th consecutive quarter. This is due to lack of derived demand, stalled mining activities and delayed clearances of projects and investments and in these sectors.
It is heartening to note a positive change, though marginal, in the manufacturing growth in the 1st quarter (April-June 2014) of the current financial year 2014-15.

As per CII ASCON Survey, as high as 24 industry segments have registered a growth rate of more than 10% in the 1st quarter (April-June 2014) and 58 industry segments continue to be in the growth trajectory of 0-10%.

With new government taking over the charge and several policy measures underway, including an excellent pragmatic budget, there is a marked positive change in the overall sentiments. Industry is sincerely hoping that some of the challenges that have dragged the growth rate in the past, such as lack of domestic demand, high interest rate, infrastructure bottlenecks and inverted duty structure would be addressed soon, leading to a revival and buoyancy in industrial activities” Mr. Chandrajit Banerjee, Director General, CII