CII's Agenda

CIIs Agenda
2010-11 and
beyond
Confederation of Indian Industry
CII Estimates GDP Growth at 8.0 8.5% in

2010-11
India has weathered the global economic crisis better than
other countries EIU.
India considered an emerging economic superpower and
part of G20.
2008-09
2009-10
2010-11 E
Agriculture
1.6
-0.2
2.0 3.5
Industry
3.9
8.2
8.5 9.0
Services
9.8
8.7
9.3 9.5
GDP
6.7
7.2
8.0 8.5
Rainfall during 2009 was significantly deficient at 23% led

to decline in agricultural production
A recovery in agriculture likely in the coming year leading
to upside in GDP growth; Industry and services to remain
strong as capacity expansions take place to take
advantage of rising demand
2
Source: CSO, CII Research
Indias economic outlook remains very

robust
GDP expected to grow

at
~ 8% to reach ~$2T by
2016
India projected to be
#3 largest economy by
2050
India has the
India real GDP (at 2009 prices) *
2050 GDP
$2T
$1.8T
$50T
44
40
2
$1.2T
potential to grow
fastest over the
next 30-50 yrsif
development
proceeds
successfully
35
28
30
1
8%
CAGR
20
10
2009
2015
(estimate)
0
Current
rank
Calendar year; Exchange rate: INR50= USD1

Source: Euromonitor; EIU; Goldman Sachs
(BRIC report)
China
US
India
10
However we face Significant Challenges

Global developments: Developments in EU-Greece
highlight the fact that global conditions will remain
volatile for some time; excessive dependence on foreign
capital inflows is not recommended for India
Exchange rate: Currency fluctuations being driven by
external conditions will have an impact on the real sector;
important role for RBI in preventing excessive volatility
Trade prospects: Improving with stabilisation in the global
economy but growth in developed economies will remain
weak in the near term; need to diversify markets
Inflation: urgent need to get inflation under control;
monetary policy cannot be the only instrument when the
drivers food, fuel and commodities.
4
However we face many significant

challenges
Future
Current
High Poverty rates:
- Unacceptable poverty
(37%1)
- 456M2 people live on
<$1.25/day
Low literacy rates
~70% of populationamong the lowest in the
emerging markets*
Corruption & red-tapism
Ranked #84 out of 180
countries on corruption
index
Widening job gap in

next 5 years:
17M job gap ~94M new people will
seek jobs but only
77M new jobs will be
created
Source: 1(% of total population) Expert Group on Methodology for Estimation of Poverty - chaired by Prof. Suresh D. Tendulkar, 2010
2
2005 PPP adjusted figure based on World Bank poverty estimate for developing world (2008);
*China and Brazil >90% (% of pop. aged 15+)- Euromonitor
^ Transparency International- India scored 3.4/10 where highest was 9.4 (New Zealand)
Two biggest sources of employment in our

economy are agriculture & private sector
Employment by location & sector (M); FY 2007
100%
80
402
402
201
Urban
(29%)
Others
Construction
Services
Public
Manufacturing
60
40
20
Trade, hotel,
restaurant
Rural
(71%)
Private
Agriculture
0
Note: *Excludes unorganized workers in the organized sector; ^consists of those in the working age group (15-59) actively seeking employment;
1
includes community, social and personal services; 2 includes mining and quarrying; transport, storage and communication; finance, insurance, real
estate; electricity , water etc
Source: Registrar General of India; NSSO; Indiastat; Labour Bureau of India
Going forward, the private sector will

need to be the primary driver of creating
new jobs
Expected increase in number of jobs

by sector (M); FY 2007-12
120
125
100
75
Finance, insurance, real

estate and business services,
Transport,storageand
communication
Mining & quarrying
58
Elec. gas & water supply

Construction
50
Community,social and personal

services
25
Manufacturing
0
-25
Trade,hotel, restaurant
-4
FY 2007-12
Agriculture
FY 2007- 17
Private sector growth needs to increase from projected

9.5% growth to ~12%+ annually to close job gap
7
Note: Excludes unorganized workers in the organized sector; ^consists of those in the working age group (15-59) actively seeking employment; * includes community, social and personal
services; ^ includes mining and quarrying; transport, storage and communication; finance, insurance, real estate; electricity , water etc
Source: Registrar General of India; NSSO; Indiastat; Labour Bureau of India
Four key enablers for faster sustainable

growth over the medium term
1
Education
Qualified
talent
pool
2
Employability
Sustainable
enterprise
Create jobs &

livelihoods
Innovation
4Entrepreneur
-ship
Effective
business
practices
CII Theme 2010-11: Business for livelihood

8
Businesses are part of civil society

Creating jobs is the best CSR activity
How do we achieve this vision?

We need to aim for sustained 10% GDP
growth
Vision 2010-11
Business for livelihood

(Education & Employability, Innovation & Entrepreneurship)
Social and
Corporate
imperatives
Agriculture
Manufacturing
Services
Art, sports & literature
Education & skills
Healthcare
Corporate governance
Inclusive society &

affirmative action
Entrepreneurship, innovation
& competitiveness
Economic policy, reforms,

governance &
implementation
Trade & globalization
Energy, water & climate

change
1
0
Infrastructure
Urbanization & future cities
Ten Point Agenda for 10% Growth

1.
Agriculture needs to grow at a sustained rate of 4%
2.
Manufacturing needs to register 11-12% long term average

growth
3.
Service sector needs to remain robust and a growth driver
4.
Physical Infrastructure needs to be of global standards
5.
Education would have to be the centre of reforms
6.
Skill development would need a massive step up
7.
Labour environment and rules need to be conducive to

employment creation
8.
Delivery mechanisms of Government need to be streamlined
9.
Need New Urban Centres to come up as growth poles
10. The financial sector reforms need to be fast tracked to

enable financing of a high growth, large economy
particularly focusing on long term funding instruments and
1
1
Financial Inclusion
Aim is to Achieve a Sustainable and Inclusive 10% Growth
by 2014
1. Achieving 4% Sustained Agriculture

Growth
Virtual stagnation in Agriculture due to
Poor infrastructure
Collapse of Agricultural Extension System
Decline in public investment in agriculture/
irrigation
Fragmentation of land holdings
To do:
Raise farm productivity by improving quality of inputs
Better Supply Chain Management
Improving Market linkages
Optimal and Sustainable use of available land
Right Pricing of Power and Water
CII initiatives
Special Task Forces constituted to address issues related to
agriculture
Special Task Force on Monsoons
1
2
2. Achieving 11-12% Long Term Manufacturing

Growth
Need an Enabling Manufacturing Policy to

include
Simpler clearances and approval mechanism
Encouragement to Green Manufacturing
Technologies
Appropriate Infrastructure
Flexible labour rules without diluting social
security net
Easier exit policy
Friendly tax system GST and a well considered
DTC
FTAs and CECA/CEPAs to be entered into with
care and consideration
Government support needed for Technology
infusion, development and upgradation in
select sectors
Land Acquisition and R&R Laws to be in keeping
with requirement of industrialization
Proposed NMIZ
Policy
addresses
these issues,
therefore,
needs quick
enactment
Every additional 1%
growth in
manufacturing
creates 20-30
million additional
jobs
Need to develop
strengths in labourintensive sectors
such as textiles,
consumer
electronics,
furniture and
industrial machinery
Policy
CII working with DIPP on New Manufacturing

2010-11 would see a huge thrust to the Cluster programme of CII
CII would release a white paper on Land Acquisition and R&R
CII would set up a VLFM Institute
1
3
3. Taking Services to the Next Level

Key policy changes required in services sector include
Enhanced FDI participation in select areas of services
Set up a National Services Competitiveness Council
Iron out Centre-state issues in the services sector
Improve the viability of the informal sector in services
Rationalise taxation issues in the sector
CII Initiatives in the services sector include

Developing PPP model in healthcare space with Planning Commission
Policy dialogue with Planning Commission for a comprehensive retail policy
Dialogue with the Ministry of Tourism for upgrading skills of the manpower
required in the Tourism & Hospitality Sector for the Commonwealth games.
CII to facilitate Policy dialogues on Roadmap for accelerating growth of
broadband in India to reach 695 million users by 2014
Facilitating policy dialogues for Broadcast Regulation and Distribution
platforms
1
4
4. Creating world class infrastructure
Roads and highways: Improve dispute resolution

mechanism for road development
Power sector: Push distribution reforms in the power

sector through privatisation of large discoms, reduction
in AT&C losses and peak load management
Civil Aviation: Timely policy intervention for settling the

issues regarding airport infrastructure; provision of
space for establishment of MRO facilities; and,
rationalization of high sales tax on ATF
Ports & Shipping: Corporatise major ports and improve

port evacuation facilities for improving port connectivity
A CII-MoRTH Joint Task Force created to identify issues
of concern in the roads sector and suggest solutions
CII National Committee on Civil Aviation consulting with
Airports Economic Regulatory Authority
1
5
Education (primary and secondary) delivery

system needs significant improvement
High drop out rates throughout schooling
100%
100
80
-26
60
-24
40
20
0
Initial
enrolment
Class
I-V
Class
VI-VII
38
-12
Class
IX-X
High
school
Poor quality of delivery stagnation/decline in learning &

comprehension
Teacher to student ratio of 1:60 at primary level
Only half of 5th standard students can read 2nd standard text in
2008
Source: Annual report, Department of School Education & Literacy; Forbes India Budget 2010 analysis; Annual Status of Education Report
(Rural) 2008
Only 28% across grades could do simple division sums in 2008
1
6
Education (tertiary): Gross enrolment

rates are very low vs. other countries
GER in tertiary institutions is considerably lesser than other
countries
Gross enrolment ratio in tertiary education (2007)
100%
80
82
76
59
60
40
30
20
0
USA
Norway
UK
Brazil
23
China
12
India
(2006)
Govt of India aspires to achieve 30% enrolment in tertiary

education by 2020
Gross Enrolment Ratio= (number of students enrolled in a level of education regardless of age)/ (population of official school age for that
level)
Source: UIS data center; UNESCO Institute for Statistics; Department of Higher Education; Lit search
5. Education The Big Agenda

Objective
To create the intellectual infrastructure and knowledge
workers needed to sustain high growth trajectory in a
competitive global environment
CII Policy Initiatives
- Policy Advocacy to make teaching an attractive professional
proposition by addressing remuneration issues. Retaining
talent in the teaching profession
- Developing practical modules to encourage private
investment in the education sector
- Support for foreign universities coming to India (Foreign
Educational Institution-Entry and Regulation Bill 2010)
- Public-Private-Partnership in developing industry oriented
curriculum and developing industry role in accreditation and
rating of institutions
CII, in partnership with GoI will establish 30 Industry-Academia

Innovation Centres across the country one in each state
1
8
Improving employability is an urgent need

leads to an employability
crisis
Inadequate vocational
training
Proportion of vocationally
trained labour force (Aged 20-24 yrs)
100%
80
68
75
78
96
80
~53% of employed youth suffer

from skill deprivation1
Barely 10-15% non-engineering
graduates are employable1
60
40
Only ~25% engineering graduates1

considered directly employable;
e.g., Infosys annual training
budget is ~Rs 750 Cr2
28
20
5
0
India
UK
Mexico
Canada
Korea
Germany Japan
Source: International Labor Organization; World Bank Human Development Report, 2006; CLSA, March 2008; Credit Suisse, December 2007; 11th plan document;
Planning Commission - task force on employment opportunities, 2001
1 India Labour Report 2007 (http://www.teamlease.com/images/news_image/coverage2009/dec09/Addressing_22dec09_All.jpg)
2 http://www.bpowatchindia.com/bpo_news/infosys_spends_rs750_crore_on_training_workforce/august-112008/infosys_spends_rs750_crore_on_training_workforce.html
6. Stepping up Skill Development

Objective
To make India the skills capital of the world. Develop the skills
needed to support the rapid expansion of manufacturing and
services, and develop a more productive and sophisticated
agriculture sector

-
2
0
CII is working with Universities to develop vocational training

centers. There is already a CII-Delhi University Vocational
training program
Setting up of new skills centres : Gurgaon with ITE Singapore
and Balasore with IndiaCan
CII has build sector specific Skills Councils for Agriculture ,
Hospitality, and Automobile in partnership with the EU. Other
such councils are on the anvil
CII is partnering with Ministry of Rural Development to develop
vocational training in rural areas based on local demand for
skillsLaunch
and provide
placement
services
for the trained
workers
of 10
new CII Skill
Development
Centres
7. Conducive Labour Policy to Create

Employment
Objective
To bring together industry, governments, and labor rights groups
and create a policy environment that supports employment
generation, inclusiveness and productivity enhancement. To
develop best practices in labor management and standards that
meets global benchmarks
- CII is working closely with government for the simplification and
rationalization of labor laws
- CII is developing best practices and practical modules for contract
labor keeping in mind the objectives of livelihood sustainability
- CII is working with industry and other stakeholders on occupational
safety and is an active participant in the National Safety Council
- CII is closely involved in the policy formulation process with the
Central Apprenticeship Council and the Central Board for Workers
Education
CII to release White Paper on Labour Regulations
2
1
8. Improving Government Delivery

Systems
Quick implementation of Unique Identification Scheme

Move to a system of cash transfers or coupons compared to
present system of subsidy in specific items
Significant improvement possible in case of targeting food
subsidies by moving to food coupons that can be redeemed
against food supplies in any retail outlet
Greater devolution of power to local governance bodies such
as Panchayats in rural areas and municipalities in urban areas
Willingness of government bodies to work with private sector
for ensuring better delivery: PPPs in education and health
services are promising
Set up regular monitoring/ assessment system using special
groups comprising experts, government officials and industry,
in areas where large outlays are made by government
CII Task Force on Technology for Inclusive Development

CII-State Government Monitoring and Implementation Task
Forces
2
2
National Sectoral Task Forces (Government / CII) on monitoring

and implementation
9. New Urban Centres as Growth Poles
Structural challenges driven by nature of urbanization in India

i.e. unprecedented scale, high density cities and
predominantly Brownfield
Policy limitations private participation and Urban Local
Bodies functioning with poor execution capabilities
Administrative problems Municipalities are overburdened
resulting in poor levels of service delivery
To overcome these problems, need to give increased power to
ULBs through ensuring their financial independence and viability
Need to implement 74th Constitutional amendment
Enhance execution capabilities by devolution of operational and
financial power to local bodies
Encourage PPPs to create Enabling Environment at State Level
CII to facilitate dialogue on Real Estate Regulation Bill

CII report on Intelligent Urbanisation A Roadmap for India
throws light on how technology has a role in meeting Indias
urbanisation goals
2
3
10. Financing High Growth
Develop Rupee denominated corporate debt

market for raising long-term capital
Increase access to international debt markets
Expansion in capital base of banking system
Greater FDI needed in Insurance and Banking
Resources currently locked up in financing

government debt needs to be freed
CII is creating New Task Forces on:

-Financial Stability & Development; and
-Financial Inclusion
2
4
Small /micro entrepreneurs account for

~50% of jobs, but multiple issues hamper
growth
Self/small scale employment
accounts for large portion of
workforce
80
40
20
Agriculture
60
0
Total employed
201
201
Public
By type
Private
>10
Private<10
402
Self employed
100%
Regular / casual
workers
People employed
(FY07)
Multiple issues to consider

Little or no education, and no
vocational training
Access to credit
Lack of social security
Self-employment for minority
communities (inclusive growth)
Corruption, especially at
grassroots
By ownership
Non-agri employed
Note: Self employed people may or may not be entrepreneurs, and may or may not be skilled
Innovation
Need to develop India specific Innovation Ecosystem Model for

meeting challenges unique to Indias context
A Public funded privately managed endowment needs to be

created, which would address the early stage finance
requirement of innovation
Favourable Policies and Incentives to increase Industrys

investment in Innovation (R&D/Design/IPR) from current level
of 0.2% of GDP to 1% of GDP in next five years through
Industry-Academia/R&D institutions-Government Partnership
CII, in partnership with Ministry of Science and Technology, will establish

Global Innovation and Technology Alliance (GITA) to implement
Governments Technology and Innovation Initiatives national and
international
2
6
Inclusiveness and Affirmative Action
Indian Industry shares the nations resolve to address

the deprivation suffered by the SC/ST communities and
commits to stepping up its
Affirmative Action agenda
in the years to come to ensure that India becomes a

land of equal opportunity
CII has developed a voluntary Code of Conduct for

members to implement positive discrimination
CII would take the success stories among its members

in the area of affirmative action across the country to
encourage similar initiatives in other firms.
CII has created a Affirmative Action Fund with industry
contributions to finance affirmative action activities in the
private sector
2
7
Corporate Governance
Key Issues
Inadequate number of qualified / competent independent

directors
Unutilized whistle blowing mechanisms
Focus Areas for CII
Directors Training & Orientation

Directors Liability Issues
Effective whistle blowing methods
Proactive advocacy for adoption of CII Voluntary

Recommendations on Corporate Governance
2
8
Trade and Globalization

CII Goals
Double Indias goods and services exports by 2014 from current

levels, double Indias share in world exports by 2020
Substantially expand industry linkages in global production chain

and access global market through strategic acquisitions and joint
ventures abroad
CII Policy
Develop a dedicated commercial intelligence mechanism for

Indian industry
Focus on capacity building on quality accreditation, export cycle

management and logistics to make Indian industry more
competitive
Engage with government to ensure trade agreements have

positive outcomes for industry and are equipped to deal with
2
9
industry concerns on emerging trade issues like non-tariff

Global Engagement
3
0
30 Overseas Business Delegations to key countries (China,

Japan, S Korea, UK, USA, Germany, France)
15 Planned meetings with Heads of State (South Africa,
Russia, France, UK, Japan, S Korea, Canada)
CEOs Forums with countries of strategic interest (14 new
Countries identified focus on emerging economies)
Regional Conclaves in emerging markets of LAC, Africa, CIS
Strategic dialogues Track II with China
Business Summits ASEAN, EU, IBSA, Pakistan
3
1

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CII&#39;s Agenda

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CIIs Agenda

Confederation of Indian Industry

CII Estimates GDP Growth at 8.0 8.5% in

Rainfall during 2009 was significantly deficient at 23% led

Source: CSO, CII Research

Confederation of Indian Industry

Indias economic outlook remains very

GDP expected to grow

India real GDP (at 2009 prices) *

Calendar year; Exchange rate: INR50= USD1

However we face Significant Challenges

Confederation of Indian Industry

However we face many significant

Widening job gap in

Confederation of Indian Industry

Two biggest sources of employment in our

Confederation of Indian Industry

Going forward, the private sector will

Expected increase in number of jobs

Finance, insurance, real

Elec. gas & water supply

Community,social and personal

Private sector growth needs to increase from projected

Confederation of Indian Industry

Four key enablers for faster sustainable

Create jobs &

CII Theme 2010-11: Business for livelihood

Businesses are part of civil society

How do we achieve this vision?

Confederation of Indian Industry

Business for livelihood

Art, sports & literature

Education & skills

Inclusive society &

Economic policy, reforms,

Trade & globalization

Energy, water & climate

Urbanization & future cities

Confederation of Indian Industry

Ten Point Agenda for 10% Growth

Agriculture needs to grow at a sustained rate of 4%

Manufacturing needs to register 11-12% long term average

Service sector needs to remain robust and a growth driver

Physical Infrastructure needs to be of global standards

Education would have to be the centre of reforms

Skill development would need a massive step up

Labour environment and rules need to be conducive to

Delivery mechanisms of Government need to be streamlined

Need New Urban Centres to come up as growth poles

10. The financial sector reforms need to be fast tracked to

1. Achieving 4% Sustained Agriculture

Confederation of Indian Industry

2. Achieving 11-12% Long Term Manufacturing

Need an Enabling Manufacturing Policy to

CII working with DIPP on New Manufacturing

Confederation of Indian Industry

3. Taking Services to the Next Level

CII Initiatives in the services sector include

Confederation of Indian Industry

4. Creating world class infrastructure

Roads and highways: Improve dispute resolution

Power sector: Push distribution reforms in the power

Civil Aviation: Timely policy intervention for settling the

Ports & Shipping: Corporatise major ports and improve

CII's Agenda

CII's Agenda