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this IssueInsideMessage From the Director General. .......... 1Chandrajit Banerjee, Director General, cii

policy Barometer ......... 4

industry Voices ............ 9

cEo Speak ...........................................................................................2

July 2016, Volume 5, Issue 1

PolicyI ndia aspires to achieve 9-10%

GDp growth in the medium term. the target should be to drive

productivity growth across the economy - at the national level, the level of the citizen and at the firm level.

the task for industry is to continuously build its competitiveness through a range of strategies such as quality, sustainability, resource management and process management. with this aspiration, the cii theme for 2016-17 is ‘Building National competitiveness.’

cii will work through six key areas of focus to drive National competitiveness. these are human Development, corporate integrity & Good citizenship, Ease of Doing Business, innovation & technical capability, Sustainability and Global integration.

• Human Development: with 63% of the indian population in the working-age group, there is high potential to drive growth through focus on education, skill development and healthcare. cii will continue to progress on skill training hubs and skill gurukuls. it will also take up implementation of the National Skill Qualification Framework across the country. we have already set up a Model career center in Gurugram and two more are coming up in Mumbai and chennai for placement services.

a major cii initiative this year would be starting work on the cii University in amaravati, andhra pradesh.

• Corporate Integrity & Good Citizenship: industry needs to shift to voluntary compliance with internationally accepted standards and norms. cii’s new initiatives in the area include instituting cii code for Fair Business practices and adoption of Voluntary Standards, and starting a course with the indian School of Business and GE for compliance officers, apart from continued focus on corporate governance through the National Foundation for corporate Governance.

• Ease of Doing Business: it should be easier to do business next year as compared to this year. cii has recommended introduction of processes for alternate dispute resolution, arbitration and conciliation. Better tax administration can be boosted through greater dialogue with industry.

cii would work with central and State Governments for adoption of technology, plug-and-play project models, labour laws, and other administrative processes. we would build on our dialogue with trade unions for progressive industrial relations and draft guidelines on fair and responsible workplace.

• Innovation & Technical Capability: productivity depends on technical readiness and innovative capacity. cii plans to set up ’india Design center‘, ’india industry ip Foundation‘ to build more ip owners, and a national Start-up center focusing on non-it rural

entrepreneurship. a new cii service to build capabilities in structure innovation processes is also proposed.

• Sustainability: the global agenda for Sustainable Development includes a set of 17 Sustainable Development Goals (SDGs) for 2030. cii would promote sustainable practices including renewables in energy mix, reforestation, sustainable agriculture and green practices. a national mission to double energy productivity by 2030 is envisaged. cii is initiating a programme to enable all members to adopt Greenco rating in the next three years.

• Integration with the World: india needs to move from a defensive stance to greater convergence with global markets. cii would work to further promote trade, investments and global strategic alliances. Market entry services to overseas companies, especially SMEs wishing to invest in india are to be offered. indian companies must enhance their capabilities in meeting global standards and norms, and cii would assist in building competitiveness at the firm level

through these six major pillars of engagement for the coming year, cii will foster stronger relationships with all stakeholders to make india more productive and inclusive. n

Chandrajit BanerjeeDirector Generalconfederation of indian industry

Dr. Naushad Forbes, president, cii & co-chairman, Forbes Marshall

Focus: Building National Competitiveness

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CEOSpeak

india’s medium term outlook is positive,

building on the growth drivers of an expected

normal monsoon, improved macroeconomic

fundamentals, and moderating interest

rates. cii expects GDp growth of around

8% for 2016-17, if external conditions

remain stable.

india needs to sustain a high growth path for

the next thirty years. the key to high sustained

growth is productivity - of each individual and

firm in the country. Sustained productivity

growth requires the movement of people

from lower value added activities (marginal

agriculture, informal services) into higher

productivity activities (modern manufacturing

or services). it requires investment by firms in

innovation, in doing new things for commercial

advantage. the Economic Survey makes

a telling point: if india's entire work force

operated at the same productivity as formal

manufacturing in the country, we would have

an economy 20 times our current size and

a per capita GDp level with South Korea

(USD 40,000).

hence, the cii theme for the year is Building

National competitiveness, at the national,

industry and firm level. this would build an

enduring growth engine.

what are the drivers of sustainable increases

in productivity? human Development is the

first area of engagement, including primary

education, higher education and vocational

and skills training. we have some 800 million

people under the age of 35, and 400 million

of them would enter the workforce over the

next two decades. their energy and capacity

will be india’s best growth driver during this

period and this huge opportunity for raising

productivity, savings, and investment cannot

be missed. these young people are our

richest asset and must be able to contribute

to nation-building.

Education and skill development are

therefore of the highest priority, with industry

as a capable and committed partner. this will

also empower historically deprived sections

of society. Mapping of skills to identify areas

of shortage is an urgent task, followed

by strategic initiatives to fill the gaps. cii

manages twelve Sector Skill councils and is

working on policy advocacy for implementing

the National Skills Qualification Framework.

at the same time, we would need to create

employment opportunities on a large scale

for this incoming cohort.

the sub-theme of corporate integrity and

Good citizenship is particularly close to my

heart. the great bulk of firms are inherently

honest, contributing daily to our national

development goals. a small number of

deviants capture the public imagination and

distort the overall image. cii has had a

voluntary code on business ethics for several

years. in March we relaunched this as a

simplified code, with just six simple principles

accessible to firms of all sizes, encouraging all

Members to adopt it. the code has received

a good response and the names of the firms

who adopt the code are on our cii website.

we emphasize that this is a journey that

begins with compliance and extends to good

corporate citizenship. Each firm will be at a

different stage in this journey, and our role in

cii is to enable and ease rapid progress.

the third focus area is Ease of Doing

Business, where much has happened due

to proactive efforts from the Government.

while administrative processes in areas

such as labour returns, e-biz, and single-

windows are improving, inter-ministerial

coordination and action at the State and

local levels is lagging. this is particularly

the case for small and medium enterprises,

which face multiple hassles in their day to

day operation. initiatives reaching down to

the local administration level must be set

in place and cii will continue to work with

State Governments on this measure. we

have suggested that every State and the

central office have a running list of EoDB

issues, which we keep working on month

by month. at the end of the year, most

businesses should be able to state that it

is easier for them to do business and that

the business climate has improved.

innovation and technical capability is part of our theme this year as it is the source of long run competitiveness of firms. No nation in the past has developed without a strong emphasis on building technical capability, be it Japan,

Building National Competitiveness

Dr Naushad Forbespresident, cii &

co-chairman, Forbes Marshall

Source: africa Studio\shutterstock.com

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CEOSpeak

South Korea, Singapore or china. this issue

has received little recent policy attention or

firm focus in india. we seek this year to raise

the quality of discussion of how best to build

technical capability and innovation. and as an

industry, we must encourage our Members to

build a culture of innovation that takes place

everywhere and all the time.

concerns regarding Sustainability in the

overall global, national and industry

discussion are also gaining mindspace.

india’s commitments at the paris cop21

are deep, including raising the share

of renewable energy, improving energy

efficiency and building more forest cover.

industry must be an active participant in

these targets in order for them to succeed,

especially at the SME level. cii’s centres

of Excellence are doing an excellent job in sensitization and providing training and support. with new initiatives, sustainability can be a tool for increasing competitiveness and saving on energy per unit of output.

Finally, we must continue on the path of globalization, as a nation and as firms. the global trade architecture is shifting towards newer geographies as new regional trade agreements are implemented. these also include higher standards and norms for trade. india is still grappling with trade facilitation issues and needs to provide better connectivity and lower transaction costs in domestic markets. in our trade policy stance, india should move from a defensive posture of limiting foreign firms access to our market to an outward orientation of improving market access for our firms.

we believe that these six themes add up to our overall goal of building national competitiveness. the response from presenting these thoughts to Members around the country has been most gratifying. our joint endeavor can take us far. n

Source: Rawpixel.com\shutterstock.com

Source: one photo\shutterstock.com

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Policy Barometer

Key CII Recommendations for Building National Competitiveness

Human DevelopmentSCHool EDuCaTIoN

Towards Governance and Effective Education Delivery: •Standardisation of education delivery, learning platform for teachers, absenteeism/availability, out of school children and technology for education

Set up a national portal that will provide a framework –with grade wise content and hot topics regularly updated with the help of nodal institutions like NcERt and educational companies

leverage ScERt/DiEts as training hubs covering private and –public schools for implementation of the framework

Mandatory training/refresher re-training for every –teacher

Towards Education Excellence/assessments:• Monitoring conceptual learning, quality education in schools and teacher enhancement programmes

assess conceptual learning through independent –agency(s) annually to check improvement

Gradually, Board exams need to be reformed towards a –greater focus on conceptual understanding

teacher Exchange programme between public & private –sector and mentoring at each level can be a great learning platform for teachers of Government schools

public private partnership (ppp) for infrastructure –development and providing basic facilities to schools in rural areas. Government to announce tax benefits/subsidies to corporates that are willing to take such initiatives for a social cause

Using accredited private agencies to administer teacher –Eligibility test (tEt) to test subject specific conceptual understanding and practical classroom skills, during recruiting

Each teacher to participate in research work related to –innovative education methodologies

RTE & Ethics and Value in the Education System: • RtE, effectiveness, infrastructure, accessibility and ethics

Fund allocation post new Government formation –

compulsory guidelines for implementing RtE act by –central Government

coordination of initiatives between Ministries for example –hRD, labour, women and child Development, panchayati Raj, Rural Development, etc. like NSDa (for vocational) formation of an umbrella body that brings all these agencies together to work towards a common goal

Defined framework and guidelines to measure the –effectiveness of this initiative

Space allocated for schools under State development –plan should be re-looked

provide basic infrastructure with electricity, drinking water –facility, road and connectivity in remote villages

like Singapore, it should be mandatory for every student –to volunteer time at a school – Each one teach one across a semester (teach for india)

internship with a political think tank to imbibe values –and understand nuances

HIGHER EDuCaTIoN

Improve quality by accreditation, compliance, and •disclosure of information: NBa should be encouraged to outsource its work to independent agencies which can help it in carrying out the task of accreditation

Increase autonomy through decentralisation of •institutions - more and more institutes need to be given autonomy to set their own courses and make changes in the curricula

Encourage academic research by bridging the gap •between research and teaching - funding to cSiR system (under the S&t Ministry) can be gradually routed through educational institutes based on competitive bidding

attract and retain good faculty by giving them more •power and autonomy - Government institutes should be allowed to appoint foreign nationals as permanent faculty rather than as consultants for short durations, the way they do currently since only permanent faculty can be expected to have long-term vision for the growth of the institute

Facilitate easier access to funds:•allow educational institutions to access external –commercial borrowings

Modify companies act to allow education institutes to –float bonds to raise money

include education sector in the list of ‘priority sectors’ –to enable easier lending terms by banks

SKIll DEVElopmENT

legislation of the National Skill Qualification Framework •followed by pan india advocacy is important. one uniform standard across india will raise the benchmark of training and quality of skilled workforce

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Policy Barometer

Corporate Integrity and Good CitizenshipCII moDEl CoDE oF CoNDuCT – ETHICal BuSINESS pRaCTICESaccurate Books and Records: the company will maintain accurate accounts and records which reflect the true and fair picture of the company’s affairs in compliance with accepted accounting principles and standards for financial reporting.Bribery and Corruption: the company will prohibit bribery in any form in all its business dealings and will maintain strong controls to prevent and detect improper payments. the company shall comply with anti-money laundering and terrorist financing laws and report unaccounted cash or suspicious transactions.Fair and Equitable Treatment: the company shall not unfairly discriminate on the basis of race, caste, religion,

color, ancestry, marital status, gender, sexual orientation, age, nationality, ethnic origin or disability. the company shall not tolerate harassment, whether sexual, verbal, physical or psychological against any employee.Health and Safety: the company shall provide a safe, clean and healthy work environment.Quality of Goods and Services: the company shall strive to ensure that its products and services meet the legally required safety and quality standards.Environment and Society: the company shall strive to be a good corporate citizen by promoting social welfare activities, promoting sustainability and minimizing the adverse impact of company operations on the environment.

apprenticeship training is key to making youth ready for the •industry and improving their skill sets. it should be embedded in curricula of all trades taught in iti/itc to ensure a healthy balance of theoretical and practical knowledge

Skill development needs to be actioned at the ground-level and •therefore it is imperative that all State Skill Missions under the chairmanship of chief Minister are active and goal-oriented

one unified labour Market information System portal for •job seekers and job providers through integration of all the existing platforms

HEalTH

Healthcare

catalyze leveraging of unutilized public infrastructure•

intensify work with the Ministry of health & Family welfare •(Moh&Fw) and the State Governments through the regions

Follow up action proposal for linking health insurance for •Universal health coverage and work on coverage for opD / diagnostics in health insurance

Devise robust ppp concessionaire agreement / contract models •for primary, secondary, tertiary care, diagnostics, mobile health focusing on increased participation from private sector for strengthening infrastructure, services and referral system at primary centers and secondary care

increase seats in post graduate medical colleges and consider •policy and regulatory reforms in medical education to enable private sector involvement

Public Health

immunisation•adopt innovative technology solutions for cold chain –management, data collection, it integration and equipmentDeploy smart technologies and innovations such as cloud –monitoring, remote sensing and advanced temperature monitoring devices to counter challenges and evaluate the impact of interventions

Diabetes Management and care•

Equip primary care health centers with glucometers, –glucose strips, EcG machine as well as with manpower trained to manage diabetes

Sensitize physicians about eGFR formulas as well as –promote healthy diets and highlight harmful effects of tobacco and alcohol in schools and universities

adopt technologies such as tele-medicine and m-health. –these could play a larger role in screening and management of DR in rural areas, reduce patient load at the secondary and tertiary care institutions and save the patient time as well as money

train paramedics to screen for diabetes and the ensuing –complications as well as on Basic life Support (BlS) and advanced cardiac life Support (aclS)

Medical Technology

Set up a single window authority for the regulation of •medical technology and rationalize the licenses required to operate a business in this sector (manufacturing, innovation and marketing)

Staff the regulatory and administrative agencies with an •independent set of appropriately qualified professionals. the systems and processes should also be devised keeping in mind the unique nature of the medical technology industry

Define a few hubs under the ‘Make in india’ aegis. Focus •on enhancing the capability of designated manufacturing hubs—specifically encour aging logistic operators to improve services, ensure quality power and water to be available, set up training institutes and increase the efficien cy of in-bound and out-bound clearances. additionally, medical device hubs or clusters should have centralized testing, sterilization and validation centres

launch specific tax incentives and lower cost of finance •for setting up manufacturing plants in line with competing locations like Malaysia and Singapore. Rationalize the inverted duty structure

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Policy Barometer

Ease of Doing Business in Indiacii believes that significant improvement in efficiency, •transparency and governance can be brought in by large scale adoption of technology in Government. there is a need to shift from the existing system of sequential approvals to simultaneous approvals through technology enablement across central and State Government

there is a need for risk profiling of industry sectors for differential •exemption regime - for e.g. in case of punjab, a set of 131 types have been identified as low risk and are therefore exempted from obtaining pollution control Board approvals. also, it is suggested to create a negative list of industries for strict approvals having social, environmental and economic implication

it is recommended to have a pre-existing regulatory •mechanism for specific land zones – this would involve identification of specific industrial areas / estates wherein no

approvals shall be required for setting up of the business. Such industrial areas would therefore be readily available for setting up of businesses

there is a need for streamlining investment approval and •provision of utilities – it is suggested to implement effective single window mechanisms and legislations that ensure time bound Government service delivery. it is important to facilitate fast-track and transparent systems of approvals to minimize processing delays and ensure timely disposal of issues

Efficient and effective enforcement of laws is critical to effect •scalable improvement in Ease of Doing Business – it is suggested that the Government should consider e-enablement of all courts to make commercial dispute resolutions quicker and more efficient

Innovation and Technical CapabilityTECHNoloGy aND R&D

continue existing R&D incentives for research conducted in-•house and for R&D conducted outside in an institution:

R&D conducted in-house: – where the company engaged in the business of manufacture of any article or thing (other than specified in the Eleventh schedule) is entitled to a weighted deduction of 200% of revenue or capital expenditure (other than land or building) incurred on scientific researchR&D not necessarily carried in-house: – where the assesse does not have an in-house facility, and the same is carried out by any institution on behalf of the assesse, then:

any payments made to a research association, i) university, college or other institution weighted deduction of 175% is grantedany payment made to a company weighted ii) deduction of 125% is granted

Reintroduction of Section 80-iB (8a) of the it act with •Mat exemption as articulated by the DSiR in its November 2014 recommendation to Finance Ministry and GSt waiver for companies qualifying under Section 80-iB (8a) for cost advantage to buyers of indigenous research output

Setup a programme funding mechanism similar to the US Small •Business innovative Research program (SBiR) to encourage start ups and small business to innovate newer technologies. in US the SBiR programme is a highly competitive programme that encourages domestic small businesses to engage in Federal Research/Research and Development that has the potential for commercialization. through a competitive awards-based program, SBiR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated and the nation gains entrepreneurial spirit as it meets its specific research and development needs

identify five existing universities for research and innovation •excellence, create a road map for 25 years to reach the top 100 universities. Ensure adequate funding to meet global benchmarks. create avenues to attract foreign students to create a diverse and idea rich environment. the metrics for benchmarking of the universities including publications, h-index, diversity, and patents and commercialization of research for social good

a national campaign to attract talent especially women to •science and technology, which would be necessary for the country to realize its growth potential

STaRT-ups

the definition of a start-up should be standard as it differs •from the centre to States when it comes to exemptions and rebates. Some of them are subsets and some are contradictory. Some States add additional qualifiers as well

the topic of venture debt should reach a maturity stage •where a start-up can access it

agencies such as SiDBi should provide funds for marketing •expenses for business growth

aspect of mentoring/coaching/training should be captured •as we can have great ideas, access to funding, tax breaks, incubators etc. but without some handholding in the execution arena we’re likely to see more failures than successes

Share interim updates either through an e-newsletter or •through workshops at different cities where success stories can be shared to encourage greater participation in this valuable movement

translate the start-up action plan into those languages that •feature on our currency note to enlarge the dissemination footprint and make it more inclusive

there should be a clarity in regards to the specific acts, •under which labour laws are being interpreted. (Shops & Est or Factory act)

clarity on compliance needed in pension must be there•

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Policy Barometer

clarity on maternity leave and minimum wage to be there•

there needs to be a clarity on the 80% rebate on patent, as •total patent costs include landscape analysis, drafting claim, lawyer fee, filing fee, search and examine fee and exemption document from the indian patent office, if filing outside of india by indian citizen

procurement norms must be relaxed for service sector also•

there should be some elaboration on the kind of ip held by •start-up and the independent control of its operations

Director’s liability post closure must be mentioned in the •Bankruptcy Bill

capital gains taxes in cross border deals should be clear as there •are very few Start-ups which are single country now and most are cross border in terms of funding, customers and people

SustainabilitypRomoTING GREEN BuIlT-ENVIRoNmENT

Municipal authorities should consider offering 5-10% •additional Floor area Ratio (FaR) to green building projects: this incentive will encourage developers to adopt and promote green buildings

Single window clearance for green building projects: Speedy •approvals can be offered for green building projects, which would help in timely execution of projects

Upcoming cities can adopt green cities concepts•in the next 25 years, many new cities would emerge –in india. there is also a potential to convert existing cities into green cities. Municipal authorities should be encouraged to follow green cities standards like iGBc green cities rating system. this rating system enables development authorities and developers to apply green concepts and planning principles, so as to reduce environmental impact and improve the quality of life

Encourage cii Greenpro certified products for green building •projects

availability and affordability of green building materials –should be enhanced. cii in partnership with Underwriters laboratories (Ul) has launched Greenpro certification, which can help prospective designers and architects to select certified green products

WaSTE maNaGEmENT, alIGNED WITH SWaCHH BHaRaT mISSIoN

Development of a National waste Management & Recycling •programme

this would be an overarching framework to create and –mainstream the organised waste management and recycling industryStructured frameworks and guidelines for recycling –industry to be developed to integrate it with the existing waste management rules and guidelinesDevelopment of industry and sector specific recycling –standardsDeveloping guidelines for management of plastic from –e-waste

promotion of ppp model for waste management and •recycling

Establish facilities for reuse, recycling and reprocessing –of wastes from various sectors should be encouraged by providing incentives and ensuring the process for setting up ppp facilities

RENEWaBlE ENERGy

create regulatory certainty for renewable energy projects over •longer tenures, such as 25-30 years, to encourage investment by industry, and address state-level uncertainties about issues like tariffs, land acquisition and grid evacuation

Ensure availability of low-cost, long-term and innovative •financing mechanisms from multiple public and private sources to finance the rapidly expanding sector

power evacuation, grid integration and grid stability are critical •issues facing the renewable energy sector. Government in coordination with SlDcs and R&D institutions must develop grid management and load balancing mechanisms for large-scale deployment of renewable energy

provide impetus to domestic manufacturing of renewable •energy equipment vis-a-vis imports by enhancing the ease of doing business in terms of setting up / expanding businesses by timely availability of land and other essential infrastructure; easy and rational licensing policies including single-window and environmental clearances; production-based incentives; working capital support; payment security mechanisms; and additional support to revive legacy plants which have become uncompetitive due to the rapid decline in the cost of renewable energy, particularly solar

create a level playing field for indian renewable energy •manufacturers within the country vis-à-vis international competition by developing a set of internationally acceptable, actionable, india-specific, industry-wide standards for the manufacture / output product of solar panels as a first step to eventually standardise the complete value chain. this will also help lenders – banks, multilateral agencies, as well as consumers, easily choose and finance projects against standard parameters

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Policy Barometer

permit inter-state sale of power as cross-subsidy charges in many •States is adversely affecting the viability of renewable energy

Stricter enforcement of Renewable purchase obligations •regulations is a key enabler for the promotion of renewable energy technologies by ensuring offtake of produced power, thus guaranteeing return on investment

Renewable energy goods may be covered under GSt and •taxed at ‘zero’

Keep a strong focus on offgrid applications of renewable •energy, especially for agricultural purposes such as solar water pumps and the rural electrification programme to provide accessible and affordable power to citizens

Encourage adoption of renewable energy processes for Smart •city development as well as waste-to-energy management for municipal and agri-wastes, including crop residues

Establish favourable tariffs for wind-solar pV hybrid systems, •and promote energy storage technologies including thermal, hydro and hydrogen storage to provide round-the-clock reliable, grid-quality power

Sensitise the entire stakeholder chain – from policymakers, •producers, utilities, and end-consumers (commercial, industrial and residential) to appreciate the contribution of renewable energy to the sustainability of india’s environment without compromising on the pace of economic development, including

altering the mindset to focus on upfront costs instead of lifetime ownership costs or intangible costs such as climate change

CoRpoRaTE SuSTaINaBIlITy – NoN-FINaNCIal REpoRTING

large number of Reporting Frameworks: Mandatory/voluntary disclosures for extra-financial parameters to be made by Business has been steadily increasing around the world. indian companies are getting such demands from global investors or buyers, and from evolving disclosure standards in india

while improving standards or requirements are welcome by •Business, there are concerns with respect to duplication or redundancy of information. cii recommends that different extra-financial requirements made by SEBi in listing agreement and by companies act 2013 should be consolidated to remove redundancies and integrated to give a strategic overview of the business and how the Board is steering the company to create more stakeholder value

while increased transparency with external stakeholders is •good, improvement in disclosures should be such that it helps top management and Boards make better business decisions that create more stakeholder value

this consolidation and integration of reporting frameworks •should be synonymous with global frameworks with adequately factoring in domestic conditions

Integration with the worldmoving up in the production value chain:• till date, india’s exports are highly dependent on primary goods and labour intensive low value added manufactured goods. india’s share in high value added or advanced manufacturing exports is very less. it needs to invest in R&D and adopt technologies to produce and export more high value added technology intensive exports

Diversification of services exports:• More than 50% of india’s GDp comes from the services sector. But when it comes to services exports, india is highly dependent on the exports of information technology (it) and information technology enabled services (iteS). the large spectrum of india’s services portfolio is unexplored in foreign trade. india needs to diversify its services export basket. india also needs to leverage Ftas for services exports, which hasn’t happened so far

Reform the standards regime in India:• post liberalization, in a low tariff regime, the focus has now shifted to non-tariff and technical measures such as standards and conformity assessment. in the new emerging trading system, standards and technical regulations define the export potential and overall competitiveness of an economy. it is very important for manufacturers and services providers to comply with the international best practices and standards to create an eco-system of conformity

Removing some of the supply side constraints in •India: india has a number of critical supply side constraints that are actually containing india’s exports potential. these

include infrastructural deficiency, inadequate trade finance, high logistic cost and inflexible labour laws. Government has initiated several reforms to address these problems but the entire effort need to be expedited

States' involvement in foreign trade: • as of now, under the federal architecture of india’s governance, foreign trade related matters are handled by the central Government whereas the actual production of goods and services takes place in States. there is less intervention/involvement from the State Governments in terms of overall foreign trade policy formation. higher participation of the State Governments is required for trade facilitation, reform of standards regime and more value addition in production cycle

attracting export oriented Foreign Direct Investments •(FDI): Recent data on FDi shows that it is mainly confined to services, infrastructure and relatively low technology intensive consumer goods. in other words, unlike china the nature of FDi inflow into india has been largely market seeking. there is very little foreign investment into export-oriented manufacturing in india. the Government of india under its flagship campaign ‘Make in india’ must ensure more export-oriented FDi

more focus on trade financing: • india’s mainstream banking and financial system is not fully oriented towards foreign trade. there are not enough funds with commercial banks for trade financing. also the credit risk insurance and investment insurance covers are not enough. as a result, many small and mid-sized indian exporters find it difficult to go for large export orders or new products and markets for exports.

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Industry Voices

the education scenario in the country is going through tremendous changes post the Right to Education act, especially the primary education sector. we have achieved gender parity and curbed quite effectively the dropout rates. it is praiseworthy that the hRD Ministry and planning commission through the Sarva Shiksha abhiyan have made a beginning in providing the complete infrastructural requirements in rural schools. the country has seen in the last few years more number of primary and upper primary schools sanctioned as per RtE norms. the concern now is to upgrade teachers through continuous quality based training with upgraded curriculum in sync with present times. Enforce examinations and assessments from Grade V instead of Grade iX so as to bring back the quality in education. Schools must be graded and ranked so that appropriate efforts can be channelized and targeted for improvisation in their quality standards.

N Kumar past president, cii; chairman, cii primary Education council and Vice chairman, the Sanmar Group

Skill development in manufacturing is the best possible way we can show the world that ‘Make in india’ is a real possibility. the services sector benefited enormously from the availability of skilled manpower especially in the it and itES sectors, and we must create the same advantage for manufacturing and make india’s demographics our biggest strength. what we have achieved so far is a good start; moving from very little to a sizeable amount is definitely commendable.

pramod Bhasin chairman, cii National committee on Skill Development and chairman, the Skills academy and Founder & Vice chairman, Genpact

the gross enrolment ratio in higher education has now crossed 24%, as per the latest figures of the Ministry of human Resource Development. So, in terms of numbers and access, we have made good progress. it is now time to focus on consolidation and improvement of quality. professional agencies such as cii should participate in accreditation of institutions and supplement the efforts of the National Board of accreditation and National assessment and accreditation council. it is also time for education sector to be accorded infrastructure status to facilitate easier access to funding required for institution building.

Vijay Thadani chairman, cii National committee on higher Education and Vice chairman &

Managing Director, Niit limited and co-Founder, Niit University

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Industry Voices

the committee on integrity and transparency in Governance came up with the Model code of conduct for the cii members last year and 91 members have already adopted the code. Beyond that, a working Group is engaged in working out guidelines for being a good corporate citizen, i.e. a responsible business entity. this would cover corporate behavior towards environment, land acquisition, water use, health and safety etc. cii in collaboration with GE and iSB will be running a residential programme on compliance Management to build a team of dedicated compliance officers needed in the country. to engage the youth and to give a message that it makes sense to be ethical in life, cii is organizing lectures by its members to the students and is also considering other initiatives.

Sumit mazumder immediate past president, cii and chairman, cii National committee on integrity and transparency in Governance and chairman & Managing Director, til limited

the Government has displayed considerable commitment and rigor over the last two years to make it easier to do business in india. improving business facilitation at the State and local level is equally paramount, as this is where the bulk of the regulatory hurdles are entrenched. to its credit, the centre has been pushing the States towards reforms; the first big step was taken in September 2015, when States were ranked on 98 parameters of Ease of Doing Business as per the Business Reform action plan.

the annual assessment of all States, alongwith the progress made by each in the area of Ease of Doing Business will inculcate healthy competition within the States, irrespective of the inherent advantages and will help the overall business environment in india. already, healthy competition between the States is emerging and this is encouraging.

Sunil Kant munjal past president, cii and chairman, cii task Force on Ease of Doing Business and arts, heritage & culture and

chairman, hero corporate Service limited

there has been a great impetus coming from the Government to fast pace the start-up growth in india. this is an opportune time for the players in the indian start-up ecosystem to establish their roots more firmly on the ground and build a sustainable future. currently many central Ministries (MSDE, Dipp, DSt, Niti, MSME etc.) have proactively taken up the challenge to contribute in building the overall entrepreneurial landscape, but a more focused approach and better convergence of start-up activity through a single ministry could work in the benefit of all stakeholders. the States should also independently set up systems and processes in place to nurture State level entrepreneurs and also become competitive at the national level.

S Gopalakrishnan past president, cii; chairman, cii Start-up council and co-chairman, task Force on cii University and co-Founder, infosys limited and chairman, axilor Ventures

the basic issue in india’s health system is that although the network of delivery settings is in place, each is working in isolation, leading to imbalance in the patient inflow catered to by these healthcare facilities. there are a few areas in which the private sector can join hands with Government to augment supplies and catalyze quality in healthcare delivery especially in terms of new technologies, procedures, infrastructure and capacity building.

Dr Naresh Trehan chairman, cii National healthcare council and cMD, Medanta – the Medicity

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Industry Voices

i am encouraged by the forward momentum shown in policies such as cutting pendency of patent filing for start-ups to two and a half years. the next step on patents would be to ensure pendency is brought down to two and a half years across the board. programmes such as the Uchchatar avishkar yojana encourage university research with clear outcomes and industry partnerships – a much needed direction! Going forward, we need to build on this foundation by pursuing programmes with direct research funding to small businesses from the Government.

Dr Gopichand Katragadda chairman, cii National committee on technology and Group chief technology officer, tata Sons limited

Economic growth and environmental sustainability go hand in hand. industry in india has demonstrated leadership in all aspects of sustainable development. india has over 3.6 billion square feet of registered green buildings which places india as the second largest country in the world with registered green building footprint. Buildings are substantial users of energy and green buildings can make a significant impact on saving resources.

cii has the unique distinction of launching Green company (Greenco) rating system, the first of its kind in the world. 175 companies are working on Greenco rating and 25 companies have already reported savings of Rs 491 million / year per annum. cii has pioneered a rating system for green products known as Greenpro. a large number of companies have shown interest in this rating. cii has facilitated annual recurring savings of over Rs 2,800 million by conducting over 1,500 detailed energy audits. Further, world class energy efficiency initiative in Engineering, cement, pulp & paper, Sugar and power plants is evoking excellent response. the Government of india is promoting renewable energy and sustainable development. industry in india has to play a vital role in embracing sustainable development. cii will continue to focus on various green initiatives and facilitate the indian industry to emerge as a global leader in sustainable development.

Jamshyd N Godrej past president, cii; chairman, cii climate change council and chairman & Managing Director, Godrej & Boyce Manufacturing company limited

Recent trends have shown significant strides to actively encourage production of clean energy like solar and wind. the confluence of Government and industry objectives has come at the most appropriate time when organizations globally are taking the leap towards low carbon, climate resilient sustainable growth. while the Government has been supportive of the sector, organizations have showcased their commitment and prowess by helping india cross 26.8 Gw of wind and 7 Gw of solar power installed capacity as of May 2016. progressive policies to scale up renewables as a mainstream power source have been driving down the cost of energy. technical and financial innovation are reducing the cost of constructing and operating projects while providing india with a sustainable power source with cost certainty.

we are also confident that the partnerships forged by the Government with global organizations to enhance cooperation on energy security, accelerating renewable energy development and mobilizing investment for clean energy, will help us achieve the 175 Gw power capacity from renewable energy resources by 2022.

Ramesh Kymal co-chairman, cii National committee on Renewable Energy and

chairman & Managing Director, Gamesa wind turbines private limited

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Industry Voices

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in the backdrop of continuously falling exports for such a long period, there is enough reason to reassess our policy environment for foreign trade. while external environment is likely to remain unfavorable, indian industry needs to be capacitated by addressing some of the major constraints. there is a need to tap newer markets, particularly those with whom india has signed free trade agreements (Ftas). the challenge is how to enhance competitiveness of indian industry in global market by producing high value added products. we also need to diversify our services exports basket as over dependence on one sector such as it enabled services makes our situation always vulnerable. the existing incentive system should be revamped to strengthen export competitiveness of domestic industry, so that, we can reverse the current trend of continuing falling exports.

Sanjay Budhia co-chairman, cii National committee on international trade & trade policy and Managing Director, patton international limited

india is currently going through a tough time on the merchandise exports front as it has witnessed a negative growth for the last 17 months. this has been posing a major challenge to both policy makers and industry members. Ever since the economic crisis post-2008 the overall demand in the major developed markets has not picked up. the slowing demand has pulled prices down and restricted exports in both value and volume terms. on the other hand, customer preference for goods and services has changed dramatically in the last one decade. this requires exporting countries to produce more value added goods and services that require skills, research and development, technology and a strong standards ecosystem. the exporters of conventional products and services are slowly losing the market. there is a third dimension, too. the changing global trade architecture, resulting from mega-Ftas, is likely to have a major influence on future trade pattern. Both indian industry and Government needs to respond and prepare to face this new emerging challenge.

G K pillai chairman, cii National committee on international trade & trade policy and chairman, tata international limited