Move from “ease” of doing business to “please” of doing business: Suresh Prabhu

 

Saying that India should now move from ‘ease of doing business” to “please of doing business”, Mr Suresh Prabhu, Minister of Commerce and Industry, Government of India, said that it was critical that the entrepreneurial ecosystem in the country was “nurtured and allowed to flourish” . Mr Prabhu was addressing the session entitled “The reform calculus: Promoting ease of doing business” at the CII Partnership Summit 2018 being organised by the Confederation of Indian Industry (CII) in association with the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India, and the State Government of Andhra Pradesh in Visakhapatnam. He said that dynamic chief ministers like Chandrababu Naidu “have made my job as federal minster for commerce and industry easier as I can bask in his glory.”
 

He said that what was unique about Andhra Pradesh was that “not only had it made its investing processes totally transparent but also offered customised solutions to individual businesses which is a paradigm shift in the way business was being done in the state.”
 

Mr Chandrababu Naidu, Chief Minister of Andhra Pradesh, said that if “Andhra Pradesh were a country, it would rank 88th in the World Bank’s ease of doing business index” . He said that his goal was to take his state to “64^th rank in the first phase and reach 40^th rank in the second phase, with the ultimate goal of being among the top 5 investment destinations by 2050 globally.”
 

“I am benchmarking my goals with the top countries of the world in the ease of doing business rankings,” Mr Naidu said, pointing out that already “30% of business proposals are given approvals on the spot and the rest of the 70% are only taking a maximum of 21days.”
 

Ms Shobana Kamineni, President, CII, said that while the ease of doing business was important and critical, it was time that the Indian industry “doubled-down” on the “business of doing business” . She said that the Indian industry bodies should come together and raise their voice to enable the growth and development of Indian business.  The CII President also pointed to the criticality of ensuring that the parameters of measuring ease of doing business should also include the criteria of friendliness of government policies towards the growth of MSMEs.
 

Ms Kamineni also said that it was time that India started producing “large world class companies” through the easing of doing business by encouraging and facilitating participation by “anchor investors, even from abroad.”
 

Mr Sameer Garde, President-India & SAARC, Cisco Systems Inc said that it was important to link the efforts to enhance the ease of doing business with the ‘livability index” so that the needs of “bottom of the pyramid are also addressed through the use of technology and processes.”
 

While appreciating the quest for ‘Make in India’ and launching of defense-corridors in south India, Mr Phil Shaw, Chief Executive-India, Lockheed Martin, wanted India to also consider the imperative for creating a larger ecosystem in the defense and aerospace sector by “moving beyond the adoption of the lowest-cost technical solutions paradigm.” He also called for “predictability in procurement” by the Indian government.
 

Saying that he “believed in India” , Mr Myron Brilliant, Executive Vice President and Head of International Affairs, USIBC US Chamber of Commerce, emphasised that any country that is projected to grow from a $2.5 trillion economy today to a $10 trillion economy in 15 years cannot be ignored.”
 

Praising the vision and execution prowess demonstrated by the CM, he said, “May be (US) President (Donald) Trump can learn something from him.” He called on Andhra Pradesh to mark its presence in the US by opening an office in the US. “While 15 US states have offices in India, there is no presence of Indian states in the US,” Mr Brilliant said.
 

Mr Jamal Saif Al Jarwan, Secretary General, International Investor Council, UAE, pointed to the “similarities in vision” between what was happening in India and Andhra Pradesh to what was being done in his own country.
 

He said that UAE was “moving from an oil-based economy to knowledge-based economy as innovation is the key to success.”
 

Giving an overview of the history of economic development of Spain after its joined the European Union, Mr Jose Luis Kaiser, Director General, International Trade and Investments, Ministry of Economy, Industry and Competitiveness, Spain said, “It is important that the reforms that were happening in states like Andhra Pradesh must be replicated all over India which would lead to rapid and dramatic rise in the Indian economy.”
 

Inspired by India’s success in raising its rank in ease of doing business, Mr U Aung Htoo, Deputy Minister, Ministry of Commerce, Myanmar, said that his country had “committed to raise its own ranking from a lowly 170 at present to 100 within three years.”
 

Mr Soumitra Dutta, Founding Dean, Cornell SC Johnsons College of Business, USA, who moderated the session said that the potential for India to move up the ease of doing business rankings was “immense”. “Just one insolvency legislation witnessed moving from 131 to 100. So, imagine what other reforms could do to out rankings. Just think of the potential”, he asked.
 

The session concluded with the inauguration of plaques signifying the foundation for setting up an Indian Institute of Foreign Trade campus and an Indian Institute of Packaging campus in Kakinada. Also, enrolment cards were distributed to aquaculture farmers.

14th Auto Expo 2018 Components show kicks off in New Delhi

Auto Industry Leading Manufacturing Sector in India: Anant Geete
Focus on Developing Global Standards for the Auto Industry: Suresh Prabhu

The Automobile and Auto Components industry in India is leading the manufacturing sector and is a major part of the Make in India Initiative. This was stated by Mr. Anant Gangaram Geete, Minister of Heavy Industries and Public Enterprises, Government of India at the Inaugural Session of the 14^th Auto Expo 2018 Components Show being organized by the Confederation of Indian Industry (CII), the Automotive Component Manufacturers Association (ACMA) and the Society of Indian Automobile Manufacturers (SIAM) from 8-11 February 2018 in New Delhi.

According to the Minister, a major focus of the auto industry should be to develop environment-friendly vehicles and he committed his Ministry’s support to make this happen.

Mr. Suresh Prabhu, Minister of Commerce and Industry, Government of India highlighted the need for the auto components industry to develop global standards and participate in Global Value Chains (GVCs). He stated the industry was already a success story in terms of participating in global supply chains and was now ready to value add and participate in GVCs.

He stated that his Ministry was exploring the development of two auto clusters. One on the east coast and one on the west coast. These would be created on a global scale with world class facilities to help the automotive industry plug into the GVCs. He urged the auto components industry to step up their exports as this, in his view, would go a long way in boosting the growth of the sector.

Ms. Shobana Kamineni, President, CII stated according to a recent CII study, 5 products in the automotive sector had the potential to be #1 or #2 in the world. These included passenger vehicles, Two and Three Wheelers, Heavy Commercial Vehicles, Auto Electricals and Electronics and Automotive Batteries. These have now been acknowledged by the Government of India and included as a part of the 25 priority sectors for Make in India 2.0. She felt that the sector was well positioned to benefit from globalization and increase its exports exponentially.

Mr. Abhay Firodia, President, SIAM stated that the entire the auto component industry had done well in the past to evolve from import substation to innovation. He was of the view that the industry now needed to gear up to meet the challenge of emerging trends such as electro-mobility, alternative fuels, automation and Artificial Intelligence (AI).

Mr. Nirmal Minda, President, Automotive Component Manufacturers Association stated that the auto components industry was one of the largest job creators in the country and that reflects its strength. He stated that in terms of electric mobility, the auto component industry was still in a nascent stage of development. Nevertheless, there were a few companies who have developed expertise in this regard and were exhibiting in the Auto Expo. He felt that the industry not only needed to cater to the automobile sector but also to the aftermarket – which was a growing segment.

Mr. Chandrajit Banerjee, Director General, CII stated that the Auto Expo 2018 Components show covered 60,000 square meters of exhibition space, over 1200 participants from over 20 countries. There were seven international pavilions showcasing world class technologies and products. Mr. Vinnie Mehta, Director General, ACMA delivered the concluding remarks.

New Industrial Policy will focus on ease of doing business at the district level

New Industrial Policy to Focus on Implementation at the District Level: Commerce and Industries Minister

Manufacturing to be at $1 trillion by 2025: CIM

The New Industrial Policy will focus on ease of doing business at the district level, stated Mr Suresh Prabhu, Minister of Commerce and Industry, at an industry gathering held by the Confederation of Indian Industry (CII). Growth can only be accelerated by government policy in tandem with the private sector, he added, stressing that the intention of the government is to ease regulations for industry. The Central and state governments need to work together along with district level administration.

File photo

“This is only the third time that an industrial policy is being brought out after 1956 and 1991,” said the Minister. “It will be based on what the private sector can do and will promote entrepreneurship.”

India will become a $5 trillion economy within the next 7-8 years and within this, the manufacturing sector is expected to contribute $1 trillion, pointed out the Minister. For this to happen, India needs detailed planning on which existing sectors and new sectors can emerge as growth drivers. A single digital ID for companies, self-regulation, third party certification, and easier regulations will be key to industrial growth, according to Mr Prabhu.

The country will also see $1 trillion of exports of goods and services within the medium term, he continued. New products and new markets will need to be explored for achieving this. A detailed plan is under preparation for identifying the best options. The Minister announced that the Government is working on ease of trading and aligning agencies towards this.

Other points being taken up by the Government include startups, agricultural exports, logistics development, packaging and industrial corridors, stressed Mr Prabhu.

Ms Shobana Kamineni, President, CII, noted, “Various trends such as changing face of globalization, new technologies and shifting global value chains need to be considered for the future of India’s growth.”

A presentation outlining the New Industrial Policy stressed on skill, scale and technology. Ease of doing business, aligning trade and manufacturing, access to credit for MSME, industrial infrastructure creation, skill development and promotion of technology will be the dimensions covered in the policy.

New Delhi

6 February 2018