Time to move from Ideas to Implementation: Leading Thinkers

We have resources and ideas but now there is need to focus on productivity and implementation said Dr Subir Gokarn, Director of Research, Brooking India and Senor Fellow, Brooking Institutions while addressing the session on Ideas that could change the Indian Economy at the National Conference and Annual Session 2015 of Confederation of Indian Industry (CII) on Monday in New Delhi.

Dr Gokarn said that in the infrastructure sector, the PPP model has not worked as per expectations in past few years and now there is a need for FPTP i.e. first public and then private. He highlighted the importance of accessing sources of funds such as private equity and venture capital in order to finance the infrastructure sector. Referring to the 14^th Finance Commission, Dr Gokarn pointed out that since states now have more funds being allocated by the Centre, it is time that states should increase their focus on implementation and providing services which earlier the Centre was doing. Highlighting the importance of learning by sharing, Dr Gokarn said there should be knowledge and experience sharing amongst states which will help them to successfully implement various schemes by learning from the best practices being followed by other states.

Ideas that could change the Indian Economy session with Dr Subir Gokarn, Director of Research, Brookings India and Senior Fellow, Brookings Institution

Dr Ajit Ranade, Senior President and Chief Economist, Aditya Birla Group said despite having high saving rates, the flow through the financial system is limited. As a result, large part of the savings doesn’t come into the financial system which needs to be addressed. He focused on some innovative models like Gold Demat scheme which can improve the percentage of savings being converted into Investments. He further mentioned that small businesses are badly affected by excessive paper work. There should be more enforcement raj and less inspector raj. Dr Ranade highlighted that the ratio of Road and Rail usage for logistics purpose in India is 70:30 which needs to be reversed to be save logistics cost and increase our competitiveness worldwide. While highlighting the role of cooperatives, he said that there is need for shareholders capitalism in agriculture sector. Dr Ranade further focused on the need to save electricity wastage and identify ways to capitalize on the digital world, which is going to be one of the exciting areas in times to come.

Mr R Seshasayee, Past President CII and Executive Vice Chairman, Hinduja Group said India is amongst the highest savers in the world but there is a problem of transmission because of which only a limited part of savings gets converted into investment and capital formation. He focused on the importance of converting ideas into actual implementation while saying that Ideas are there but there is a need for skills and implementation. Mr Seshasayee mentioned that we need to improve incremental capital output ratio for better GDP growth. Productivity of capital assets has stagnated or come down in some sectors like power, said Mr Seshasayee. CII was a pioneer in the area of quality but now there is a need to also focus on productivity, which will have an impact on the competitive position of India worldwide, he said. He further mentioned that it is time for the digital revolution and in the years to come this sector will grow at a high rate. India can play a crucial role by focusing on this sector. He also highlighted that there is a need for Government and Industry partnership to make a mark in this sector to make India a truly digital economy.

“3Is – Inclusiveness, Implementation and Investment are the priorities of G20 Turkey,” says Deputy PM of Turkey

“3Is – inclusiveness, Implementation and Investment are the priorities of the G20 Turkey,” said H E Mr Ali Babacan, the Deputy Prime Minister of Turkey at the Regional Consultation Forum organized by the Confederation of Indian Industry (CII) and the Union of Chambers and Commodity Exchanges of Turkey (TOBB) in New Delhi on 6 April, 2015. Mr. Babacan further added that Global Food Safety and Global Energy Policy are going to be important agendas.

Ministerial meetings will be accompanied by B20 events to hear the voices of the industry. G20 Turkey believes that if decisions are not supported by business communities, it is obsolete. The other agendas would also include Labour issues, trade, infrastructure investment, anti-corruption, and financing growth among many others.

Giving Indian government’s view, Dr Usha Titus, Joint Secretary (MR), Department of Economic Affairs, Ministry of Finance said that G20 Turkey’s 3Is aptly tally with the priorities of Indian government. Business community has been an active stakeholder in the G20 process. Many recommendations made by B20 were reflected in the G20 policy. Dr Titus also said that slow global growth is a serious concern. Infrastructure development can drive the growth. G20 has initiated the Global Infrastructure Hub to provide direction. To promote inclusiveness, large companies should include SMEs in their networks.

The Joint Secretary further added that energy is an important factor for growth. Poor needs energy and they cannot wait for renewable energy solutions. She stated that coal has met energy demand for years and will do so in the future. Multilateral institutions should help poor countries to develop energy infrastructure. Prices of gas supply to Asia Pacific should be rationalized. She also said that greater transparency and integrity in business practices would avoid corruption and tax evasion. Moreover, G20 should focus to meet deadline of fixing 5% average total cost of sending remittance which was promised at Brisbane, Australia.

Giving the industry perspectives, Mr Ajay Shriram, President, CII, said that initiatives in last ten months have laid the solid foundation and set the direction for a higher growth trajectory. The President said, “The Current Account Deficit for 2014 is below 1.3% of GDP. Based on the new series, real GDP growth is estimated at 7.4%, making India the fastest growing large economy in the world.

In his introductory remarks, Mr Rifat Hisarcıklıoğlu, B20 Chair, and President, TOBB said that political leadership and business community discussed and collaborated during the economic hardship. He stated that we can solve global challenges with global coordination. The Turkish Presidency wants to build cooperation between business and policymakers. B20 Turkey is closely working with the Turkish Government on three important things – Continuity, Connectivity, and inclusiveness.

In his remarks, Mr Chandrajit Banerjee, Director General-CII, who was also the chair of the session said, “CII is the sole Indian Industry body representing India in B20 deliberations. At Brisbane, CII led a delegation which was part of all high-level meetings between B20 and G20 leaders.”  Mr Banerjee further added that CII is also coordinating participation of Indian industry in all the B20 Taskforces. To take the relationship forward, CII has plans to host programmes on various issues including “India and the G20: Addressing the Growth Challenge” and “Business Roundtable on B20 Recommendations” and further announcements will be made shortly.

CII signs two MOUs with TOBB and EBRD Deputy PM of Turkey is chief guest

Confederation of Indian Industry (CII) signed two separate MOUs with the Union of Chambers and Commodity Exchanges of Turkey (TOBB), the highest legal entity in Turkey representing the private sector and the European Bank for Reconstruction and Development (EBRD), a pioneer private sector investment bank, at a session on ‘Inclusive Business: The Way Forward’ as part of the ‘National Conference and Annual Session 2015’ in New Delhi. Mr. Chandrajit Banerjee, Director General, CII signed on behalf of CII.

By the MOU between TOBB and CII, both parties agreed to take all such steps as may be necessary and feasible to promote bilateral trade and economic cooperation between the two countries, undertake studies to determine the support which might benefit their respective members, exchange information on all economic and commercial matters with regards to Turkey and India including specific industrial sectors relevant to both the countries. The agreement between CII and EBRD aims to increase financing opportunities of EBRD to Indian corporates through CII. EBRD has already made $1 billion investment in the India and there is huge untapped potential in the Indian private sector. This MOU will provide access to Indian corporates to global financing opportunities. 

H.E. Mr Ali Babacan, the Deputy Prime Minister of Turkey was the chief guest to witness this. He congratulated the parties and wished them success for future. Focusing on the theme, he said, “Inclusiveness, Implementation and Investment are the priorities of G20 Turkey.” Mr Babacan further added that SMEs are the engines of growth. Thus the Turkish Presidency will focus on promotion of more entrepreneurship, R&D, Innovation and employment. Moreover, G20 is launching the W20 initiative to increase the role of women in business. W20 will encourage participation of women and organizations working for women empowerment to make it more effective. He also assured that G20 is identifying solutions to improve conditions for lower income countries.

Mr Rifat Hisarcıklıoğlu, B20 Chair, and President, TOBB said, “Inclusiveness is an important driver for growth.” He further added that countries should fight challenges together. To harness the potential, B20 has started an initiative called Regional Consultation Forum to engage and involve emerging economies of the world. Mr Hisarcıklıoğlu stated that it has two objectives. Firstly, include businesses from emerging economies, and secondly, it will take note of the views of Non-G20 countries. Inclusiveness of SMEs is important as they create two-third of jobs in G20 countries. He also said that SMEs should be included in the value chains.  B20 has created a WSMEs Forum to cooperate with the SMEs and understand their problems and facilitate them.

While setting the tone of the session, Mr Adi Godrej, Past President, CII and Chairman, Godrej Group who was also the chair of the session said, “India and Turkey share strong bonds of friendship and commercial linkages dating back several centuries. Today, both India and Turkey have a vibrant economic relationship that has only touched the tip of the iceberg. We are sure that under your government’s able stewardship, the bilateral economic relationship will touch newer heights.” He stated that we are also delighted that an emerging market like Turkey has taken over the Chairmanship of the G20 for this year. India looks forward to working with Turkey to further the objectives of the G20.

​Suresh Prabhu unveils plans for business with railways -a winning Partnership for States and industry

India’s NexGen Rail Systems : Progress through Partnerships session with Suresh Prabhu

Mr Suresh Prabhu, Minister of Railways enumerated the different business models being opened in railways by attracting the state governments and local bodies into creating a shared vision for development. Different ministries viz coal and steel were being brought on board to increase freight revenues while augmenting the carrying capacities of railways. He mentioned that the low investments over a period of time has greatly eroded the efficiency of the railways vis-à-vis the road sector. His government is working towards correcting this situation, by innovative measures  to attract new investments and of utilizing railway assets at the stations by allowing a higher Floor Space Index in partnership with the local bodies. Emphasizing the need to improve the freight share of this most energy efficient land transport he highlighted that railways need to attract more of different commodity categories like parcel, which is only 2% at present, in order to help the country reduce its logistics cost, which would help in realizing the “Make in India” vision of the government, by unleashing better competitiveness in the industry.

He highlighted that railways would save over Rs 3000 Crores annually on the energy front alone by incorporating the better power purchase arrangements. Despite being one of the largest buyers of electricity it bought power at a fairly high rate which had lot of scope for rationalization. The energy basket of the railways was being widened to include more renewable sources, with the platform roof and railway coaches being equipped with solar panels. Energy efficiency measures are also being incorporated to optimize the usage of this significant cost head.

Reacting to a question from the audience he mentioned Railway ministry is working towards implementing the recommendations of the Bibek Debroy committee that has proposed creation of an independent regulatory mechanism for the railways giving it autonomy to ensure better quality of service and improving the efficiency.

Mr Prabhu presented Mr Ajim Premji of Wipro with CII President Award, the highest honour of CII for his overall contribution to business interests and social security.

Mr Ajay Shriram, President, CII earlier in his opening remarks said ‘Mr Suresh Prabhu has always tackled the challenging responsibilities and delivered results’. Sharing his experience with Mr Prabhu as Minister of Fertilizers, Power earlier, he said that he has the great ability to articulate his vision and we are encouraged to have him as Minister of Railways. It’s the first time that we have heard words like customer first. He also complimented the Minister for improving efficiency, reduction of costs, improving passenger travel experience and speed in the system which would inturn bring efficiency in industry.

Mr Sumit Mazumder, President Designate, CII reiterated CII’s commitment to work closely with Minister to have a broad shared vision and one common agenda for all the stakeholders. He extended full support from CII for make this a success. He informed about International Railway Equipment Exhibition (IREE) and International Rail Conference (IRC), a largest dedicated rail show being organized by CII in association of Ministry of Railways since 1990 at Pragati Maidan, New Delhi. It is scheduled for 14-16 October this year would work under his able stewardship.