Speech

Speech prepared for Mr. N Kumar, Vice-Chairman, Sanmar Group

Prof P Satyanarayanan, Vice- Chairman, SRM University

Mr. Pachamuthu, Chairman, SRM University

Mr Kathirvelu , Deputy Director, Employment and Training, Government of Tamil Nadu.

Respected Dignitaries, participants, media friends and Ladies and gentlemen

It a great moment for me to do the welcome address and the theme note for the Inaugural session of 20th CII Regional World Skills Competition. Skill Development is a topic dearer to my heart and I feel Skill Development as an imperative factor to maintain the competitiveness of the Indian Economy.

Realizing the importance of Skills in ensuring a sustainable and equitable growth, CII is working with the Central and the state governments on Skill Development to help release the latent entrepreneurial energies of the people in this country

Sustainability of India's growth story would critically depend on how the country addressed the shortages of skills and the need for skill enhancement and challenges in Skill Development were bigger and needed faster execution as the country was growing at a rapid pace. India needs to re-engineer its educational institutions and strengthen their infrastructure for effective Skill Development. Mapping of skill gaps, identifying training needs and investing wisely in Skills is an agenda for action for all the key stakeholders closely involved with the Skill Development initiative in the country. Developing the skills of the youth in the country also ensures the participation of people in the economic growth which will ultimately lead to inclusiveness in the growth.

This year the competition is being organized by the Confederation of Indian Industry (CII) in partnership with the Directorate General of Employment & Training, Ministry of Labour, Government of India. This year CII is organizing the competition with the objective to promote skill development programmes in the Industry and to Benchmark and scale up Indian Skills at the Global Level. The regional level competition will give an opportunity for the companies to compete at the regional level and also an opportunity to take part in the world skills competition in Canada in 2009. CII has been actively facilitating the skill development imitative in the country and this year CII took the lead in enrolling the country as a member of the World Skills International, the organizers of the world Skills competition. CII also took a delegation comprising of the Government officials and senior Industry leaders to Japan for this year’s World Skills competition. In Japan Indian companies participated in some of the trades and were able to showcase the Indian Skills to a Global Audience. In Japan India was able to develop strategic partnerships with selected corporate, government and non-government organisations to further understand and learn about the Global benchmarks in Skill Development. Over the coming years ,I feel India will be dominating the World Skills competition and will be able to standardise and benchmark Indian skills at these competitions.

CII has been actively working with the central and the state Government in rolling out long term Skill Development strategies. CII took upon itself the task of "Making India the Skills Capital of the World". CII conceived and launched the Skills Development Initiative in 2004, to become a catalyst in creating a skills movement in the country. The objective is to generate social inclusiveness and provide the socially and economically vulnerable population a chance to be part of the mainstream economy. Skills Development Initiative aims at harnessing India's 'Demographic Dividend' to make the people employable for employment/self employment in India or abroad. For tangible benefits, the training provided is necessarily benchmarked on international standards. CII views skills as a 'global currency'. CII has registered a Skills Development Trust with a Skills Development Fund and created an over arching CII Skills and Knowledge Mission to guide the functioning of the Skills Development Initiative.

I also take this opportunity to thank the host SRM University especially its Chairman, Mr. Pachumauthu and Prof P Satyanaryanan , the Vice chancellor for their proactiveness in partnering with CII in organizing the event. The staff and the Management of this amazing University were very forthcoming when CII first discussed about having the regional competition at SRM University. I should appreciate the leadership of the management for providing world Class infrastructure and serene and a peaceful environment which is a prerequisite for innovation, learning and knowledge transmission.

We have an eminent panel of judges to evaluate the candidates over a panel of 4 days and this competition I believe will help in showcasing the strength of the Indian Industry scaling new global benchmarks. I also take this opportunity to wish the competition a grand success and the participants the very best.

Thank you

EU-India Trade and Investment Development Programme

EU-India Trade and Investment Development programme was conceived in 2003 with the objective of fostering trade and investment between the European Union and India. The programme was started in India in 2006 and will be concluded by 2007 December 31st. Under the programme, Investment Facilitation Desks (IFD’s) have been established in Delhi, Mumbai, Kolkata and Chennai to serve as a one point contact for European business desiring to enter India and PricewaterhouseCoopers has been appointed as the consultant by the European Commission for the establishment of the IFD’s

The focus of the entire programme is to improve the economic environment in India and also to facilitate more trade and investment between the two regions. The programme have also a pivotal role in creating better employment opportunities and thereby addressing the core issue of poverty in India. The booming India’s economic Environment have thrown open the door of opportunities to the members of the European Union. With the India Global trade reaching a staggering US$ 305 billion in 2006, the share of the European Union members is abysmally low at US $ 47 billion. Among the European Union members the FDI Investments into India is concentrated among UK, France, Germany, Holland and Denmark. The programme also includes facilitating better FDI flows from the other members of the European Union apart from the members mentioned above.

The meeting in Bangalore was attended by the representatives of the European countries Trade offices, representatives of the Industry and trade consultants

Some of the issues of concern raised by the participants during the meeting are as follows

The investment climate is clouded with issues like infrastructure bottlenecks effecting the flow of investments into India

The STPI Concept has attracted many of the European firms to invest in India mainly in the Software sector.

There is no clarity on Special Economic Zones (SEZ’s )

Acquisition of land for industrial activities have become little problematic in certain states in India which can effect the flow of investment

The caps on FDI in India in certain high performing sectors like telecommunication, aviation etc can effect long term investments.

The desk has to facilitate more of investment into SME sector in India which has the potential to be the center of the investment spectrum.

Renewable Energy and carbon trading has been identified as one of the core sector which can drive the economic cooperation between India and the European Union

The Single Window clearance which facilitates investment is also clouded with delays.

The Education infrastructure in India has to be improved.

One of the statistics in the event showed that compared to 600 Danish companies operating in China only 70 companies are operating in India.

Skill shortages are seen in some sector which can derail the competitiveness.

The sectors identified for strengthening the Economic and Trade relations between India and European Union are
Textiles
Auto components
Pharmaceuticals
Biotechnology
It/ITES
Agriculture
Food Processing
Renewable Energy
Waste water Management

Sustainable Livelihood Enhancement: Laying the Foundation for an Inclusive Economic Development

With the liberalization of the economy, India has become one of the fastest growing nations in the world. The rapid economic growth has also had a significant impact on the social front. Social indicators have improved. Literacy levels have risen, while morbidity and mortality rates have declined. India has improved its rank one notch in the Human Development Index (HDI) value in the United Nations' Development Programme Report for 2006. However, it is widely felt that the rate of social development needs to escalate and economic growth needs to be backed by sustainable development. A number of efforts initiated by government and non government agencies on this front are working towards sustainable development of communities and the environment.

The 1992 the United Nations Conference on Environment and Development (UNCED) moved the concept towards an action agenda, especially in the context of Agenda 21, and advocated the achievement of sustainable livelihoods as a broad goal for poverty eradication focussed on the poor who live in marginalized areas. Agenda 21 stated that sustainable livelihoods could serve as an integrating factor that allows policies to address development, sustainable resource management and poverty eradication simultaneously.

After decades of India’s fight against poverty, new ideas about development are emerging .CII and several other institutions in India are revising their development strategies and placing greater emphasis on the elimination of poverty. One of the key strategies which have been unfolded is the Sustainable livelihoods enhancement programme.The Copenhagen World Summit for Social Development and the Fourth World Conference on Women (FWCW) at Beijing underscored the significance of linkages between sustainability, employment, social integration, gender and poverty eradication for policy and development programming

Sustainable Livelihood Enhancement approaches in India stems from concerns about the effectiveness of development activity. Despite stated commitments to poverty reduction, the immediate focus of much government and private effort has been on resources and facilities (water, land, clinics, infrastructure) or on structures that provide services (education ministries, livestock, services, NGOs), rather than people themselves. The new Sustainable Livelihood Enhancement approaches place people firmly at the centre; the benchmark for their success is whether sustainable improvements in people’s livelihood have taken place. It is believed that this approach at refocusing on the poor will make significant difference to the achievement of poverty reduction goals.

The Madhya Pradesh Rural Livelihoods Project (MPRLP) is a classic example of a Sustainable Livelihood Enhancement project in India. This project has brought together the Indian Government, Indian Private Sector, International Donor Agencies and the Community together. The project seeks to encourage the poverty-ridden rural families especially in tribal regions to lead a decisive fight against poverty. The voluntary participation of the poor in decision making process relating to rural livelihoods initiatives has made a desirable impact on rural scenario. The increasing confidence of the poor people to overcome poverty is being harnessed constructively to promote joint actions against long existing rural poverty. The MPRLP has adopted a bottom-up approach to poverty reduction. The MPRLP has unrolled village-specific livelihoods promotion plans with active cooperation and support from the institution of Gram Sabha or Village Assembly, which holds constitutional status.. Close partnerships with targeted rural communities through Gram Sabhas, the administration, management and need-based utilization of Gram Kosh or Village Fund by the Gram Sabha have developed a profound understanding among the rural poor about various dimensions of the rural poverty. Strengthening of Gram Sabhas on all aspects of development planning and management of resources goes on simultaneously. The Project has made well-contemplated attempts to inspire and guide community-driven micro enterprises.

The Private-Public Partnership being promoted by CII for development of backward districts, the initiative being piloted in Dungarpur, Rajasthan is another classic example of the Sustainable Enhancement of Livelihoods. The project calls for pooling of strengths and convergence of business initiatives, development programmes and science and technology inputs. The industry and institutional partners under this initiative are PI Industries, BAIF, PEDO/ Jain Irrigation/Grundfos Pump, RSSC, ITC, ICRISAT, Microsoft, District Education Department, GOR, ITI, Titagarh Bio-Tech Pvt. Ltd, DST & District Administration. Another important aspect of the project is the Development of ICT material for educating farmers on improved agricultural techniques for major crops of the district. The project is aiming for the Integrated Development of the District with a Strong Emphasis on Sustainable Livelihood Enhancement of the community.

Sustainable Livelihood Enhancement is a key strategy for the overall economic and social development of the people below the Poverty Line. It also gives an opportunity for both the Public and the private sector in India to join hands and to ensure that there in an inclusive economic development in the country and the development is sustainable and equitable.

India poised to Emerge as a Global Manufacturing Hub

India is poised to emerge as a global manufacturing hub for Earthmoving and Construction Equipments and a centre for design and R & D for ECE Industry. This was reverberated during the EXCON 2007 Conference on Opportunities and Challenges in the ECE Industry organized by the Confederation of Indian Industry (CII) in association with the Indian Earthmoving & Construction Industry Association Ltd (IECIAL).

In his address, Mr. S. R Subramanian, CEO, L&T-Komatsu Limited said that Indian companies with continuous focus on quality, low process engineering costs, higher asset utilization, low manpower costs and availability of raw materials are better positioned to emerge as a global manufacturing hub of earthmoving and construction equipments.

Highlighting the manufacturing capability of the Construction Equipment industry in India, he said that the major players in construction Equipment market in India have their own R & D centres. Indian companies are investing in R&D and developing technologies that are creating global benchmarks in the International market. He also spoke about the advantages of India as a manufacturing base for the ECE equipments.

Stressing on the emergence of Indian companies in this sector, Mr. Subramanian said that manufacturing in India follows a system process to meet global quality standards and is creating a change through a high performing culture and added that the world is looking at India as a preferred manufacturing destination rather than a market with attractive labour force.

Mr. S K Das, Executive Director, Bharat Earth Movers Limited said that Indian Manufacturing sector clocked decade highest growth rate of 14% in March 2007 because of the focus on best practices and innovation. Mr. Das further added that the Growth in the ECE is in the range of 25% to 30% for the past few years and it will be continue to be so in the coming decade.

Mr. Kevin Thieneman, Managing Director (Asia Pacific), Caterpillar, in his address spoke about the supply chain Management challenges and solutions and added that better supply chain management is the need of the hour in the Industry because supply chain strategy and design reduces cost and improves the service to the Customers. He also spoke about the Third Party Logistics (3PL) penetrating into the Indian markets.

Mr. Rajendra Khoda, Director – Sales (South Asia & The Middle East), Terex Pegson Ltd spoke about the technological developments in the Crushing and screening equipments. He emphasized the advantages of Tracked (Mobile) Plants such as easy mobility, no land acquisition cost, Low assembly cost, planning of the cost and budgeting.

Mr K. Kimura, Director, Telcon gave an insight about the technology trends in the world with respect to construction equipments and emphasized on the need for environmental friendly equipments. He quoted by an example of a product based on the concept of the Global e-service machines. These machines can be monitored and controlled through satellite and are GPS enabled. This technology helps in ascertaining the exact location of the equipment and thus results in easy and faster supply of raw material or providing the repair or maintenance at the earliest hence reducing the average completion cost and time.

Mr. Arjun Mirdha, Executive Vice President, JCB India Ltd spoke extensively on India being an export hub in manufacturing components and machines. He stressed on the fact that India would become the 3rd largest economy by 2050 and hence offered immense potential in the Infrastructure Development front.

In his opening remarks Mr. S. Raghavan, Executive Vice president, Machinery Sector, Larsen & Toubro Limited said, India is a market that has a huge potential for growth and it is also the right time for the companies to tap the opportunities.

CII Skill conclave deliberates on the need for Skill Development

CII Skill Conclave deliberates on the need for skill development to sustain the Economic Growth

Skill development is the quintessential factor to maintain the current economic growth and if this is not addressed at the earliest it will have a debilitating effect on the Indian economy. This was reverberated at the Conclave on Building Skills: Building India organized by the Confederation of Indian Industry (CII) here today. Delivering the Inaugural address at the conclave Dr. J Geeta Reddy, Hon’ble Minister for Sugar, Industries & Commerce, Export Promotion, Government of Andhra Pradesh dwelt on the need for skill development to maintain the competitiveness of the Indian Economy and added that issue of skill shortage has received due diligence from the central and the state Governments. Addressing the criticality of Skills in India , Dr Reddy said that the Government cannot work independently and need to work with the Indian Industry to develop Industry vertical skills and this is utmost important to meet the need for skilled workforce across all sectors, she said.

In his special address, Mr. G Vinod, Hon’ble Minister for Labour, Employment, Factories and Boilers, Government of Andhra Pradesh said that the efficiency of an individual grows as he build skills and this in turn increases his productivity to perform the job. Mr. Vinod also added that the Government of Andhra Pradesh supports all such initiatives and offered all help from the Government in the area of Skill Development. In his Keynote address, Mr. Ashok Soota, Past President, CII and Chairman and Managing Director, Mindtree Consulting Pvt. Ltd. said that India is facing a difficult task of having strong economic fundamentals but with an environment where the rate of Unemployment is high compounded with the lack of availability of skilled people.

Mr. Soota said there is a perception in India that “only higher education leads to higher personal growth and employment” and this needs to be corrected. It is the knowledge of skills that is important to have higher personal growth and Employment and added that stakeholders need to decide their roles and responsibilities in skill development, the funding requirements and the funding mechanism. In his theme address, Mr. B Santhanam, Chairman, Taskforce on Skills, Employability and Affirmative Action, CII (SR) said that as the share of agriculture in the economy has reduced over the years, more and more people are moving into manufacturing and service sectors as the country develops and Skill building is needed for these people to build for a lucrative employment. Quoting a CII -IMacs Study, Mr. Santhanam said that there are large manpower requirements in several sectors in Andhra Pradesh and the state needs 7.5 to 8 million additional workforce by 2015.

Mr. T T Ashok Chairman, CSR Sub committee , CII (SR) delivered the welcome address and Mr. Pradeep Dhobale, Chairman, CII – Andhra Pradesh delivered the concluding remarks.

The conclave has brought the different stakeholders together to discuss in depth on topics like Strategic challenges and Policy Initiatives in Skill Development, the global scenario in Skill Development and the Employers involvement.

Coinciding with the conclave, Dr. J Geeta Reddy, Hon’ble Minister for Sugar, Industries & Commerce, Export Promotion, Government of Andhra Pradesh and Mr. G Vinod, Hon’ble Minister for Labour, Employment, Factories and Boilers, Government of Andhra Pradesh released the CII Study on Mapping of Human Resources and Skills in Andhra Pradesh -2015

CII releases Study on Mapping of Human Resources and Skills in

Confederation of Indian Industry today released a study on the Mapping of Human Resources and Skills in Andhra Pradesh to showcase the potential of the state to emerge as the leader in Skills. The study envisages that by 2015, Andhra Pradesh will have 7.5-8 million new (incremental) jobs to offer. The employment opportunities are likely to emanate mainly from the IT & ITES, textiles, engineering, construction, pharma and biotech, tourism, health care and financial services sectors. The break-up for such job opportunities in terms of skill level is about 4.5 million skilled and highly skilled professionals and 3 to 3.5 million unskilled human resources.

Considering “employability” of these resources, it is required to create educational infrastructure/support systems (mechanisms such as training programmes, vocational courses) capable of training 3.2 million students till 2015.The study further points out that new employment opportunities in the state would not only call for enhanced functional and to an extent sector-specific competencies across levels, but also several “soft” skills to address deficiencies viz Self Esteem, ability to relate with co-workers, time management skills and communication skills such as time management skills, communication skills and ability to relate with co-workers and work as a team.

The study reveals that out of the total engineering graduates and diploma holders passing out from AP every year, over 40% remain unemployed even after two years of pass-out. The primary reasons cited for the “unemployability” of students are disconnect between academic curricula and industry requirements resulting in deficiencies in specific functional skills besides lack of practical training, market orientation., “soft” skills of students and shortfall in appropriately trained faculty to impart soft skills and this is a concern assuming increasing proportions.

The study have set out recommendations to the Government of Andhra Pradesh and suggested the need to conceptualize and roll out a Sustenance Training and Employability Program (STEP) targeted at the large pool of minimally educated but skillable workforce. This has to be a large-scale skill-development initiative, covering around 0.3 million people annually and seeking to impart basic training to unskilled labour (primarily agricultural workforce) so that they can take up jobs in the organized sector. This initiative would cover areas such as workplace culture, safety habits & specific skill training and Advanced training program aimed at people already working in the industry with a view to upgrade their skill.

In order to address skill gaps of trained human resources, the CII Study suggested that the Government of Andhra Pradesh needs to formulate and implement a Employability based skill development initiative that would seek to develop the competencies of the State’s skilled human resources to meet industry requirements. This would focus on establishing industry based skill development centres to facilitate focused skill development, strengthening employment market information to provide labour market information to stakeholders. The objective is to bridge the information gap between the educational institutions and the employers in order to facilitate quick employment for Students.

Other initiatives are aimed at improving the course curriculum to make it more relevant to industry needs and at improving ITIs by introducing more industry / job oriented courses. Improving the effectiveness of IMCs in ITIs will help the state to develop a skill talent pool.

The study recommends the Government to establish a Skill Development Fund (SDF) to ensure adequate resource availability for the promotion of Skill Development Initiatives in the state. The annual funding requirements to support the initiatives outlined above would be of the order of Rs. 650 crore.

CII suggests that the State Government nominate a nodal agency to manage the disbursement of funds that would support the various training initiatives envisaged. The key roles of the nodal agency would include establishing guidelines for funding skill development initiatives, monitoring & tracking fund utilisation and assessing the effectiveness of the programmes.

In this study CII concludes that several measures as suggested needs to be implemented by the various stakeholders—State Government, educational institutions and industry—so that human resources requirements of the State of Andhra Pradesh are met. Once implemented CII believes these measures would contribute significantly to ensure that Andhra Pradesh realise its economic and industrial growth potential. ICRA Management Consulting Agency (IMACS ) was the Knowledge partner for CII in conducting the study.

Speech written for Mr. Ashok Soota, Chairman and Managing Director, Mindtree Consulting Ltd for a CII Concalve

Dr. J Geeta Reddy, Hon’ble Minister for Industries, Government of AP

Mr. G Vinod, Hon’ble Minister for Labour, Employment, Factories and Boilers, Government of AP

Respected dignitaries, Ladies and Gentlemen and my dear friends

It gives me immense pleasure to be part of this event today and I congratulate CII for its proactiveness for bringing this very pertinent issue to this platform comprising cross-section of people such as policymakers, industry etc.

Economic growth in India has, in the last few years, picked up considerable momentum with services and the manufacturing sector showing a great deal of buoyancy. The economy has transitioned into a knowledge and skill-intensive service sector dominated economy in which manufacturing is also picking up. It is this distinctive feat that has put India in the league of fastest growing countries in the world. On the other hand, it has given rise to the issue of insufficient skills in India to meet the growing requirements of the Industry.

For the sustenance of economic growth at about 9% in future, there is a consensus amongst the stakeholders that much greater attention would have to be paid to the area of skill development.

The problems for building people in India can be classified into 3 broad areas:
(i) Problems in Primary education;
(ii) Problems in development of Vocational Skills and
(iii) Problems in Higher Education

In this talk, I will focus on items (ii) and (iii) without touching on the vast issues in Primary education to reduce drop-out rates, reduce illiteracy levels and improve the quality of education.
The essence of the problem in vocational skills is the absence of an adequate focus and orientation in our country in understanding the value and importance of vocations. When we talk of vocations also, we tend to think of them in only old economy terms. There is a need to develop many new skills and vocations which can accelerate our new economy development such as in areas of Digital media, graphic arts, design and digital printing, etc.

In the case of higher education, the essence of the problem is in resolving a paradox of high availability / high unemployment on one hand with a talent crunch on the other. The root cause for this lies in enhancing the quality of higher education beyond a few of the leading Institutions which are, of course, world class and have done the country proud.

Let me now turn to the problems of each of these two areas in some detail.
I. Problems of Vocational Skills:
As per the educational statistics of Ministry of Human Resource Development, total enrollment in technical streams is 7 lakh in engineering, 7.5 lakh in ITI and 4 lakh in polytechnics. Around 110 lakh students are enrolled in other higher education courses across Universities. Out of the total enrollment in University sector, graduates in the conventional streams such as B.A, B.Com and B.Sc outnumber those with professional qualifications with these streams accounting for more than 80% of the enrolment. The prime reason for this skewed distribution of enrollment is lack of capacity to find a place in professional courses.

As far as ITI and polytechnics are concerned, intake and capacity into these courses has been increasing marginally over the years. This is due to limited initiative to market these courses amongst students and increased preference for university level courses due to the perception that higher qualification will lead to better job prospects.

At the school level, there is a lack of awareness and willingness to actively engage in vocational education and training. Against a target enrollment of 25% of all higher secondary students in vocational courses by the year 2000, total enrollment of meagre 3% has been achieved so far. With a utilization of only about 42% of total capacity of 846,100 seats in vocational courses, only about 350,000 to 400,000 students are enrolled in vocational education.

A large number of ITI and polytechnics trained students also suffer from skill deficiencies on account of the obsolescence of curriculum and absence of reasonably latest equipment, tools, and manufacturing/production/delivery processes. The levels of vocational skills amongst labor force in India compares poorly with other countries with only 5% of the Indian labour force in the age group 20-24 obtaining vocational training compared to 96% in Korea and anywhere between 60-80% in other industrialised countries. This emphasizes the point that education system in India is focused on imparting general academic qualification with little or no vocational orientation.

Let me now turn to the issues in higher education.

II. Issues in higher education:

In the first instance, I should acknowledge that the Indian educational system is widely acknowledged as one of the engines of the country’s expansion. The country’s schools are responsible for producing a cadre of highly skilled, English- speaking workers who represent the human capital that has fueled economic growth -particularly growth of the country’s world-class information technology (IT) sector.

To sustain its economic growth, India will have to keep expanding its labor force. The IT sector alone expects its workforce to nearly double over the next three years, from1.6million today to 2.9million in 2009. While IT companies are seeking to recruit so many new workers, other sectors of the economy—including automobiles, aerospace, retail, construction, biotech, healthcare, financial services, travel, and hospitality— are beginning to grow rapidly and are joining the competition for top talent.

As I mentioned earlier, we do have a paradox of both unemployment and talent crunch at the same time. In terms of enrollment, India’s higher education system is the third-largest in the world (only China and the United States are larger). Moreover, India has the largest number of higher education institutions of any country: more than 18,000 institutions (348 universities and 17,625 colleges). The overall size of the country’s higher education system has increased substantially, driven primarily by the establishment of private institutions designed to meet the demand for more education. The number of Indians participating in higher education more than doubled from 4.9 million in 1990 to nearly 10.5 million in 2006. This increase in size has not been matched, however, with an improvement in the quality of higher education, except in our premier Institutions.

The IITs can accommodate only 5,500 new students each year, however, and more than 300,000 individuals compete for these coveted slots each year. Below the limited tier of IIT’s and NIT’s, the quality of Indian higher education falls off sharply.

Except in a few elite institutes, engineering education in India is often outdated and irrelevant. Most graduates do not possess the skills needed to compete in the economy, and industries have been facing a consistent skills deficit. Also, most institutes, including premier institutes, fail to attract and retain quality faculty. These deficiencies in technical and engineering education mean that India runs the risk of missing out on significant opportunities.

In contrast to the United States and most developed countries, the unemployment rate among Indian college graduates—17 percent in the 2001 census—is higher than the unemployment rate for high school graduates. For many Indian graduates, the problem is not just that they lack specific technical skills that industry needs but that they lack the “soft skills”—the ability to listen and to communicate well (in English), to solve problems, and to work collaboratively and creatively—that are among the abilities that many companies are seeking in their new hires.

The shortage of qualified personnel also appears in specialized areas. As India attempts to expand into higher value-added services, for example, it will be hampered by the fact that the country produces only 6,000 PhDs annually in all areas of science and engineering.

The solutions to the Quality problem include, amongst others, the following:
(i) Making Education an attractive career to attract the best quality as Faculty
(ii) Improving quality through Finishing schools where CII has a program for growth of the same
(iii) Vastly expand the reach of e-Learning programs
(iv) A collaborative approach between Government, Institutions and Industry.
Action is suggested as follows:
(i) The Government should lay down the policy framework to bridge the skill gaps and channelise the implementation by appropriately engaging the industry at various levels.
(ii) The educational institutions should strive to improve the quality of education and effectiveness of delivery mechanism to meet the requirements of industry by undertaking measures such as changing curriculum, improving teaching methods and techniques, investing in appropriate infrastructure and working towards enhanced industry – institute interaction.
(iii) Industry, as a consumer of the output of the educational system, needs to support the actions taken by the other stakeholders by participating in the skill development initiatives which could span across various areas such as providing capital to establish institutions or improve institutions, undertaking guest lectures in institutions, participating in cluster level skill development initiatives in collaboration with education institutes, managing all activities involved in imparting appropriate skills by adopting institutes. As Mr. Santhanam pointed out, Industry also has a key role in facilitating interaction between the government, institutions, employers and potential employees.

As far as identification of the most effective implementation mechanism is concerned, I believe that it would vary according to the complexity of skills involved. As rightly pointed out by Mr. Santhanam, the issues of skills deficiencies have to be addressed at three levels: basic skills for entry level / contractual employment, semi-skilled workforce with focus on employability and highly skilled workforce for specialized skills.

It is clearly understood that skill development initiatives at each of the three levels discussed above would call for coordinated efforts from all the three stakeholders but we need to understand the degree of responsibility and nature of involvement of each of the stakeholder in these initiatives? What should be the specific courses / skills to be inculcated at all levels, where should it be funded from, who shall be responsible for execution, how do we ensure consistency of education / training standards, what should be the monitoring and review mechanism to measure efficacy of these initiatives?

These are some of the questions we shall seek answer to during this two day conclave on “Building Skills; Building India” and I am sure there will be fruitful discussions among our panelists on these issues. I also take this opportunity to wish this conclave success in generating awareness about the issues and coming up with innovative ideas which will help in the important national mission of “Building People, Building India.”
Thank You,
Ashok

Words of Wisdom

"Since you usually get what you expect in life, expectthe best for yourself." -- Denis Waitley

"Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely tobe more productive than energy devoted to patching leaks." -- Warren Buffet

"I never see what has been done; I only see what remains to be done." -- Marie Curie

"I am not discouraged, because every wrong attempt discarded is another step forward." -- Thomas Edison, inventor

"Every failure is a challenge. If taken as a feedback, youare bent to succeed!" -- Unknown

"Twenty years from now you will be more disappointedby the things you didn't do than by the ones you did do.So throw off your bow-lines. Sail away from the safeharbor. Catch the trade winds in your sails. Explore.Dream. Discover." -- Mark Twain

An Inspiring Woman

While working with CII in Bangalore, I had an opportunity to meet a person called Shanti Raghavan, Founder and Managing Trustee of EnAble India, an NGO with the mission to empower people with disabilities.

It is hard to describe Shanti’s Profile-Is she a Technocrat, a Social Entrepreneur , a Singer, a fabulous speaker, a thinktank – very hard to define Shanti.

Shanti’s initial encounter with disability was right at home, when her brother was diagnosed with Retinitis Pigmentosa, a degenerative eye disease which leaves the patient progressively blind with the passage of time. She and her husband, Dipesh, (who is also a Trustee of EnAble India), played an active role in rehabilitating her brother. This was not just limited to orienting him to speech-enabled computers, or identifying tools and techniques for his studies, but also to various outdoor activities such as cycling, rafting, and snorkeling too!

When Shanti returned from US to India in 1997, she decided to set up her own organization, so that she could use her invaluable experience in empowering other disabled people too. EnAble India took birth in 1999, and since then, has been actively involved in Education, Employment, and Rehabilitation of people with disabilities. It currently has over 80 people registered with it.
Most popular is the Computer Center, which caters to nearly 30 students currently, of mixed age groups and education levels, using speech-enabled computers. She has involved herself in many volunteer-driven technology projects that would aid the disabled. She has also associated with various industries for creating awareness and generating employment. She has also conducted several workshops for parents of disabled children.

Shanti’s unique ability is to think big and yet focus on the details. She thinks of herself as a “road builder”. “Everyone”, she says determinedly, “has the right to have a good road”. What really motivates her is the thrill she gets out of realizing the “impossible”. “I’m still a child inside,” she says with a laugh. “I love to see things being done differently – things which are dismissed as impossible, made to happen”.

A multi-faceted woman with an MS in Computer Science from Monmouth University, NJ, Shanti gave up a lucrative career in GE Aircraft Engines as Program Manager and Engineering Manager to concentrate full-time on nurturing EnAble India. She uses her 12 years of experience in the software industry to give substance to her vision, and manage its affairs. Shanti is talented too – she is a Carnatic music singer who has sung in concerts, she’s an excellent mimic, she plays golf, and she loves cycling. A truly inspiring woman!

more on Shanti please log on www.enable-india.org

Medical Devices from Cow

A Biotechnology company called Regeneration Technologies headquartered in Alachua in US is involved in the manufacturing of Medical devices like surgical implants, Precision screws and Spinal wedges from bones, tendons and ligaments of cows. As the company’s name the implants have regenerative properties, leading to faster healing, less pain and greater range of motion than patients get from parts made of metal or plastic.

The company‘s website quotes ‘RTI's innovations continuously raise the bar of science and safety in the allograft industry — from being the first company to offer precision-tooled bone implants for spinal surgeries, to inventing the BioCleanse® Tissue Sterilization Process, the only proven sterilization technology that eliminates viruses, bacteria, fungi and spores from tissue without compromising the biocompatibility and structural properties of the biologic implant. The company is leading the biologics evolution once again by introducing the Sterling® Biological Matrix, providing surgeons an expanded supply of safe, sterile tissue.’

This company is one of the most innovative firms identified by CNN for the year 2007

Development of Rural Enterprises through Public Private Participation.

A new situation is emerging in India. Very rarely in history have we come across such a constellation: an ascending economic trajectory, rising foreign exchange reserves, reducing inflation rates, global recognition of technological competence, energy of 540 million youth, umbilical connectivities of 20 million people of Indian origin abroad, and the interest shown by developed countries to invest in our engineers and scientists, including in new R&D centers.
The Economic boom being witnessed in India is slowly percolating to the Rural areas. Policy makers have noted that unequal development in India can have a debilitating affect in sustaining the economic growth. The Rural Economy in India has shown a different story. Over the years the Rural India have benefited from the growth process and the rural Economy have strengthened. The Corporate Sector in India have been actively working with the Government machinery at the village level and the NGO’s to form a strategic partnership to develop the Rural areas in India. This form of Partnership is not only focused on developing Entrepreneurs and Rural Enterprises but also it is being extended in the areas of Health, Education, Natural Resource Management and enhancing livelihood options.

The association of the Industry with the rural areas has created a paradigm model which is leading to the economic empowerment of the Rural Area. The Indian Industry led by Confederation of Indian Industry has been actively focusing on the development of rural enterprises and rural markets. An example is the Rural Business Hubs, a concept propounded by CII and the Ministry of Panchayathi Raj. CII in partnership with the Ministry of Panchayati Raj is rolling out Rural Business Hubs in Rural areas to help facilitate economic activity in the rural areas which are likely to emerge as the biggest growth markets in the near future. Under the RBH plan, industry, both large and small will come together with farmers or local artisans to enhance the market value of rural products with the objective of market access for the rural poor and profitability across the value chain and creating enterprises in the long run.

Indian Industry believes that that India's rural transformation cannot be brought about by the government alone. Nor can the efforts of a few enterprises make a decisive difference. Only an inspired public-private partnership can transform lives and landscapes in rural India. Indian Industry have demonstrated that it is possible to create and sustain a model that bring together the government, the Industry , the NGO’s and the community on a single platform in supporting and developing rural enterprises.. Indian Industry is partnering with the Government and the local NGO’s in significantly widening its farmer partnerships to embrace a host of value-adding activities: creating livelihoods by helping poor tribals make their wastelands productive; investing in rainwater harvesting to bring much-needed irrigation to parched dry lands; empowering rural women by helping them evolve into entrepreneurs; enhancing livestock quality to significantly improve dairy productivity; providing infrastructural support to make schools and contributing to the development of the rural.

The Corporate sector is also engaged in actively promoting rural enterprises. The Indian Industry is evolving a public private partnership approach in developing these enterprises. India Rural areas are dependent on Agriculture and other allied activities to provide livelihoods for the majority of the population. For India, to meet its goal of reducing poverty by half by 2015 and also to reduce rapid rural-urban migration, non farm economic opportunities in rural areas need to expand. The informal rural economy is largely unregulated and faces crucial resource constraints particularly finance, skills, new technology and knowledge and Management. Here the need for public private participation emerges.

The Indian private sector with its expertise and technological excellence can complement the efforts of the Government in building up rural enterprises and providing the market access for the rural enterprises ultimately leading to economic empowerment and better standard of living. Such a public private partnership approach will lead to market facilitation processes by identifying the business sector and strengthening the competetiveness of the rural economy. Such a partnership also will bring in innovate business ideas and facilitate the sharing of information and best practices which can lead to creation of innovative rural business enterprises

CSR as a Strategy for Inclusive Growth

Corporate Social Responsibility promotes a vision of business accountability to a wide range of stakeholders besides shareholders and investors. Corporate social Responsibility is the commitment of business to contribute to sustainable economic development working with employees, their families, the local community and society at large. It is an expression used to describe a company's obligation to be sensitive to the needs of all its stake holders in its business operations. .CSR is a part of the multi dimensional process which assumes that the community interests and stability is part of the long term business sustainability. Key areas of concern are environmental protection and the well being of employees, the community and civil society in general. Many Corporates are looking at CSR as a business strategy which can provide long term leverage over the competitors. For example some consumers have become increasingly sensitive to the CSR performance of the companies from which they buy their goods and services. And also some investors and investment fund managers have begun to take account of a corporation’s CSR policy in making investment decisions. As part of the CSR policy many companies are now encouraging their employees to volunteer and take part in community work. Ultimately such actions enhance the company’s reputation and strengthen the brand.
The role of business in Society has been debated in economic literature for a long time. The modern debate on the Social side of business gained momentum in 1953 with the publishing of the book Social Responsibilities of Businessman by Howard .R.Bowen. Bowen reasoned that there would be general Social and economic benefits that would accrue to Society, if business recognized broader social goals in its decisions.
In India, many companies believe in CSR has an idea to give back something to the community and also to empower them so that they can lead a life devoid of poverty. Many firms like Infosys and Wipro have shown the way to Indian companies contribute their part in the nation building process. Many firms are looking at CSR as a strategy for the economic upliftment of the poor and the needy. Many believe the fruits of the Indian economic resurgence should be benefited by all and there is an opportunity which is to be tapped.
Tata Group was the front runner in taking care of the needs of the community. The stupendous economic growth seen in India poses a constraint on the resources and the effective way is to manage this is to work out a sustainable method where the environment is protected, the needs of the community is taken care off, employing the disable and the school drop outs by enhancing their Skills, using Information and Communication Technology (ICT) to improve the standard of living of the community etc.
A strong case for the CSR activity is a company’s commitment to sound labor practices, environmental stewardship and good community relations plays an influential role in how it is perceived by the public. In a survey conducted in 20 developed countries, CSR related factors collectively accounted for 49% of company’s image compared with 35% for brand image and just 10% for financial management.

Preventive Healthcare

Charaka, the renowned Ayurvedic physician is known to have said, "Health was vital for ethical, artistic, material and spiritual development of man". Good health is pre-requisite to human productivity and the development process. A healthy community is the infrastructure upon which an economically viable society can be built.

India is one of the pioneers in the health service planning with a focus on primary health care. Now the country is passing through a stage of "Health transition", which refers to the transformation of a society with high morbidity and mortality rates in to one in which people standardly live long, disease-free lives. The life expectancy at birth has increased from 41.3 years in 1951-52 to 62.9 years in 1999-2000. These indicators reflect India's significant achievements in case of development of its human capital. As the public spending on Healthcare has improved a lot, Government and the private sector are promoting the concept of the Preventive Healthcare.
Preventive healthcare is ultimately about increasing healthy life expectancy, improving quality of life and wellbeing, and reducing health inequalities. It is well established that your employment status, work environment and working conditions may affect your health and wellbeing. In turn, your health status may affect your employment status and performance at work.
A healthy, productive and well-motivated workforce is a key ingredient to economic growth. And for most people, engagement in work is central to their economic and social wellbeing and overall sense of fulfillment in life. Corporates are paying attention to the need of having a healthy workforce.
With the Indian Economy growing at enviable growth rates and the rising prosperity enjoyed by the workforce in India, people are adopting unhealthy lifestyles that their bodies cannot cope with. Sedentary jobs, poor diet, smoking and alcohol are all blamed for the dramatic health shift. India leads the world in diabetes cases. A government study estimated the number of diabetics to be about 38 million in 2004, and projected to rise to 57 million in 2025. The onus is on the part of the private sector in India to adopt preventive health programmes. The corporate sector can act as a catalyst in providing information about the lifestyle diseases and employee engagement in implementing a healthy life style within a company.
Preventive Healthcare system envisages having knowledge about the basic health needs, preventing oneself from communicable diseases, lifestyle diseases like diabetes and blood pressure, work related stress and injuries, about HIV/ AIDS and other related ailments which can spread through unsafe life practices and information about keeping a good mental health. Many of the corportaes in India have understood to have a preventive Healthcare programme in their premises. This health programme provides information on the ways and means to stay fit in a work environment.

Given that many conditions are preventable, every health care interaction in an organisation should include prevention support. When employees are systematically provided with information and skills to reduce health risks, they are more likely to reduce substance use, to stop using tobacco products, to practice safe sex, to eat healthy foods, and to engage in physical activity. These risk reducing behaviours can dramatically reduce the long-term burden and health care demands of chronic conditions. To promote prevention in health care, awareness raising is crucial to promote a change in thinking and to stimulate the commitment and action of patients and families, health care teams, communities, and policy-makers.
A collaborative management approach among the management, workforce and health care actors is a must to effectively prevent many major contributors to the burden of disease. The preventive healthcare programme is more of a business model while looking at a perspective of saving expenditures on health and ultimately keeping the workforce productive and healthy.
Globalization has thrown out lot of opportunities for India but also thrown out a lot of challenges in the health infrastructure side where the spread of communicable diseases is faster due to better connectivity. With increased incomes and higher life expectancy rate it is the responsibility of the Government, the corporate sector to join hands and create a health paradigm in India by forming a collaborative Health Preventive and Management programme.

Challenging the Status Quo

Young Indians from all over the country congregated in Mumbai for the 3rd Yi National Summit with the aim to focus on critical issues of Educating, Employing and Engaging the Country’s youth. Over the years Yi Summit have provided a platform for the Indian Youth to voice, share, understand and collaborate on issues they feel are critical for India’s Development. Setting the tone for the event Mr. R Seshasayee, President, CII spoke on the importance of Knowledge and how it would be the force that would drive change. Mr. Seshasayee added that Yi National Summit is happening at a time when Nations all around the world are thinking of strategies to cope with the rise of Asia and the development of the new political architecture. Mr. Seshasayee suggested that the best way of doing something positive for the country is to strive to be the best in whatever one was doing and said that Knowledge should be transformed into an idea, in turn to innovation and finally to enterprise. “If you have a bright idea, you will find money available to support the enterprise” he said. Mr. Seshasayee referred to Management Guru CK Prahalad’s book ‘Competing for the Future’ and said its lessons were relevant in the current context and urged India’s youth to do away with tolerance of failure and be more demanding. The first day of the Summit ended with the music performance by Global Rhythms underlying the need for convergence in music, thoughts and actions.

The Second Day of the Summit started with a discussion on Educating India –One Problem, Many Solutions. Dr. Y S Rajan, Principal Advisor, CII who moderated the discussion said that one’s introduction in the present day was incomplete without reference to one’s Alma Mater. Lt Gen (Retd ) Arjun Ray CEO, Indus Group of Educational Institutions and pioneer Operation Sadbhavana portrayed a grim picture of education in rural India and said that if India was to grow at the fast rates that were being talked about, education in the rural areas would make the difference and spoke of the need for a clear vision on rural education , saying India needed to declare a philosophy on Rural Education. Prof Jacob Tharu Member of Task Force, Sarva Shiksha Abhiyan explained how quality and Standards in Indian Education seemed to be going the wrong way, given that test results were treated as the parameter of evaluating education and flayed the social acceptance of Slaughtering of Students in test and exam results. Dr. Radhakrishna Das , Director, ISKCON Food Relief Foundation brought in the dimension of Food for the Soul by pointing out that the midday meal scheme had resulted in students from poor families regularly attending schools as also getting involved in the learning process. Dr. David Wlkinson, Head Master, Mahindra United World College spoke of Creative Learning and suggested Public Private Partnership was a logical way out to better the learning system.

Session II looked at the paradox of people without jobs, while jobs waited for the right sort of people. Mr. Anand Kumar Founder Super 30 recounted his experience in inculcating excellence in the right spirit, in a school without boundaries. India’s Economic growth will be powered by bright Indians who have access to support systems which help them to learn the right skill sets required to succeed. Mr. M Balasubramanian spoke about the initiatives of Dr. Reddy’s Foundation in equipping the youth with skills through the Livelihood Advanced Business School programme.

The panel discussion during the 3rd Young Indians National Summit in Mumbai had a very spirited group of panelists attempting to answer this debate. It was particularly relevant considering that the event’s theme, ‘Challenge the Status Quo’. Mr. Pradeep Kanakia, Head, Risk Advisory Practice and Member, KPMG India executive team, who moderated the event, said we live in an India which is an economic powerhouse, and has gained as a global power. But, as Indian youth stands on threshold of change, does the Gandhian concept of soft methods of agitation hold good, or is the violent alternative, one in which an agitating person literally ‘loses control’ the one that is more likely to work?

The panel deliberated on five issues: (i) education system and whether it prepares citizens of tomorrow, (ii) are we on a social time bomb, (iii) disconnect of youth from political process (iv) leveraging technology and media for engaging youth in democratic process and (v) role the Indian youth could play. Mr. Rakeysh Omprakash Mehra, Director, Rang De Basanti said India was on the threshold of change, and irrespective of ‘Gandhigiri’ or ‘Lose Control’, the first move would be everyone making the effort to change themselves. Mr. Neeraj Mittal, IAS, District Collector, Coimbatore said India’s macro-performance had been ‘stellar’ while ‘micro-performance’ had been poor. He spoke of the immense potential that the Right to Information Act brought out for all Indians, including the youth, and said it was akin to ‘Gandhigiri’. He pointed out that the ‘trusteeship’ concept of Gandhian thought was relevant in the era of money making frenzy. Mr. Govindraj Ethiraj Editor (New Media) Business Standard said before any moves at figuring out a ‘better tomorrow’, it was relevant to find out which ‘tomorrow’ was being talked about, and when talking of education, the issue was whether it helped achieving the goal. Mr. Prahlad Kakar, Ad film maker and director, Genesis Film Production Pvt Ltd said today’s youth wasn’t young enough, because it lacked commitment. He said the right education was one that taught students to ask questions and not just confirm to stereotypes. Mr. Shaffi Mather Founder Ambulance Access For All said the media created stereotypes, which weren’t necessarily true. He felt the present education system just did not deliver, and he lauded the work done by the Knowledge Commission. The panel discussion ended on the note that the oft-mentioned theory about India being two distinct and separate types, one that is educated and has economic growth as compared to the one that is impoverished continues to exist, and that youth could begin to make a difference by making themselves the first unit of change.

Addressing the Young Indians during the Valedictory Session under the theme Does India needs a youth policy, Mr. Adi B Godrej said that India needs a youth policy and such a policy should provide opportunities for the youth and added that the youth policy should be flexible and not rigid. Lt Gen (Retd ) S S Mehta , Director General , CII in his address said that the challenge for India is not whether the country will be known for its economic growth but for distribution of its economic growth and said that the nation faced the challenge of large number of students dropping out of the education system. Mr. Narayan Sethuramon , National Chairman, Yi said that India should be a socially balanced superpower with the youth as the drivers of the economy and added that Micro Nutrition and unemployment are the challenges facing the nation and a concerted effort is needed to tackle these challenges.

The Yi Summit ended in Mumbai with a positive note and called for a collective action and shared responsibility among the country’s youth for tackling the challenges discussed in-depth during the Summit.

Creation of Enabling Environment, key to Development of Backward Talukas: CII

Creating an enabling environment is the key to the development of some of the backward places in Karnataka. This forms the abstract of findings of a study commissioned by Confederation of Indian Industry (CII) named Industrialization of Backward Talukas- A report on Magadi released during its Annual Members day meet. The report has stressed on the creation of a viable environment for the development of industries using the local skills and resources. Magadi is all set to move on the track of development. There is a lot of potential for the development of Tourism and Agro based Industries in Magadi which comes under Bangalore Rural district provided proper rural infrastructure and access to market are created.

The report identified food processing as a lucrative investment option for the development of the taluk considering the fact that cultivable area under fruits and vegetables form 9.5% of the total cropped area of Magadi. Taking into account the state’s leading position in Floriculture and the favorable climatic and soil conditions of Magadi for floriculture, the report further recommends development of Floriculture as a possible avenue for employment generation in the taluk.

It also suggested the development of Tourism in the taluk promoting the place as the birthplace of Kempegowda, the founder of Bangalore. The report has also suggested promotion of Adventure Tourism in the Taluk.

Moreover to facilitate employment opportunities for the educated rural youth, the report advocates setting up of rural Business Process Outsourcing(BPO) Units with Public Private Partnership which will enable the taluk to create wealth by participating in the new economy.

India Joins World Skills International as the 48th Member: CII leads the Charge.

India today joined the World Skills international as the 48th member. Mr. Tjerk Dusseldorp, President WorldSkills International announced this during the Skills Summit: Making India the Skills Capital of the world organized in Bangalore today. WorldSkills International is a not for profit membership association open to agencies or bodies which have a responsibility for promoting vocational education and training in their respective countries/regions. World Skills provides a unique means of exchange and comparison of world-class competency standards in the industrial trades and service sectors of the global economy.

Mr. Tjerk Dusseldorp, President Worldskills International in his theme address said that by joining the WorldSkills International India has now donned the leadership role is now positioned to lead other developing countries in the Skill movement. Mr. Tjerk added that the WorldSkills would facilitate Skill exchange programme and sharing of experiences and best practices. Mr. Tjerk also commended the Government of India for giving importance towards Skill development during the 11th five year plan and said that India by becoming a member through the initiative of CII have facilitated one sixth of the Humanity to be part of the Wordskills International Movement. In his inaugural address, Union Minister of state for Labor and Employment, Mr. Oscar Fernandes said that Globalization and modern technology has thrown up opportunities and challenges for economic activity and jobs and India by becoming a member would enable to counter the challenges of Globalization with better skills. Mr. Fernandes also commended the role played by CII in facilitating the skill enhancement in the country and said that Government would be supporting CII in its bid for the Skills Olympics in 2013. Mr. Oscar Fernandes also distributed prizes to the winners of the National Skills Competition held by CII.

The Summit deliberated on WorldSkills Movement, Skills Development in the unorganized sector: The role of Financial Institutions, Role of Stake holders in Skills development and Skill Shortages: A global concern.

India an emerging power in the Global Market says Luxembourg Minister of Economy and Foreign Trade.

India is not only a major emerging power in the Global market but also the most interesting markets for European Companies said Mr. Jeannot Kreck’e , Minister of the Economy and Foreign Trade , Luxembourg while interacting with the Industry during a session organised by the Confederation of Indian Industry (CII) in Bangalore. Urging the industry to look into new frontiers in investment, Mr. Kreck’e added that Luxembourg provided the ideal investment destination for the Indian Industry with quality education, a technologically enabled vibrant growth environment and skilled workforce. Stressing on the increased bilateral cooperation between India and Luxembourg, the trade Minister suggested that Globalization has given opportunities for both the countries to work together.

Identifying the sectors of cooperation, the Minister said that Software applications in the financial sector is one area which has not been tapped by the Indian IT companies and added that Tata Consultancy Services was the first Indian company to locate in Luxembourg and take advantage of this market. Laying emphasis on the benefits of being listed in the Luxembourg Stock Exchange through Global Depository Receipts, this will entail access to a huge Euro Zone capital with 1900 billion euros in net assets. Calling for enhanced bilateral trade and economic cooperation between the two countries, the Minister said that logistics, Health technologies, Medical Devices and technology for efficient use of energy will drive the anticipated economic cooperation between the two countries. The Minister also said that the final text of the double Taxation avoidance agreement between India and Luxembourg has been agreed during his interaction with the Finance Minister Mr. P. Chidambaram

Praising Bangalore as a city of innovators, creative minds and entrepreneurs, Mr. Kreck’e said that Bangalore reminisces of Luxembourg with its lush green environment.

India and Japan reinforce economic and trade relations

India and Japan today reinforced their economic and trade relations and reiterated that the Comprehensive Economic Partnership Agreement (CEPA) between India and Japan currently being negotiated by both the countries will be concluded in 2 years. This was one of the highlights of a Seminar on Facilitating Indian Investments in Japan organized by the Confederation of Indian Industry (CII) in Bangalore. Addressing the captains of the Industry, Ms. Rugmini Parmar, Director, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India said that there is a qualitative shift in the economic relations between India and Japan and added that such a shift is strongly backed by the respective Governments of both the countries. She cited the creation of Indo- Japan Strategic Partnership Group last year as an example of this Qualitative shift. Further dwelling on the complementaries of the economic relations between the two countries, Ms. Parmar said that Japan’s technological expertise and India’s skilled labor are examples of synergies that complement each other. Ms. Parmar also spoke about the complementarities between the two economies in many fields and the need to take advantage of these in order to accelerate economic growth and realize the full potential of the relationship.

In his presentation on the advantages of Doing Business in Japan, Mr. Kazumasa Kuboki, Director General, JETRO Bangalore said that Japan which is the world’s second largest market provides the ideal Investment platform for Indian companies to get access to the other new Asian Markets. Mr. Kuboki added that Japan spends nearly 3.4 % of GDP in Research and Development and suggested the environment in Japan as a preferred testing ground for new product center for R& D in Asia. Mr. Kuboki further said that Japan is giving due diligence to Intellectual Property Rights and a high court is being established in Japan to deal with issues attached with Intellectual Property Rights to facilitate a creative and an innovative business environment

In his presentation on Inside the Japanese IT Business Mr. Samson David, Vice President- Delivery Head-APAC & Canada operations, Infosys Technologies Ltd said that IT market in Japan is the second largest with a value of US$ 100 billion in 2006-07. Indian companies have a sizable presence in Japan with Infosys, TCS and Wipro leading the Indian contingent and to survive in the Competitive markets in Japan, Indian companies need to follow the Kaizen principles working within a framework of Stringent time and quality expectations said Mr. David.

In his opening remarks, Mr. S Anathanarayanan, Past Chairman, CII, Southern Region said that India and Japan needs to improve the bilateral economic cooperation since it is a win- win situation for both countries. Quoting current statistics, he said that Japanese share of Indian trade was just 2.5% in 2005-06 and said there is lot of potential to improve this figure. Suggesting that since a lot of similarities exist between India and Japan in terms of Democracy and Open Market economy, Mr. Anathanarayanan said that India and Japan should strive for improved trade and economic cooperation since 2007 is designated as the Indo- Japan Friendship year.

Bangalore an outstanding place for talent and entrepreneurship, says Singaporean Minister

Bangalore is an outstanding place for talent and entrepreneurship observed Mr. Tharman Shanmugaratnam, Minister for Education and Second Minister for Finance, Singapore during his interaction with the captains of the Indian Industry organised by the Confederation of Indian Industry (CII) in Bangalore. Mr. Shanmugaratnam who also the life trustee of Singapore India Development Foundation is leading a high level business delegation to the hi-technology cores of Hyderabad, Bangalore and Mysore. Mr. Shanmugaratnam said that a lot of similarities exist between Singapore and Bangalore and added that both can chart a long term relationship and are better positioned to play a dominating role in the Global market place.

Mr. Shanmugaratnam complemented Bangalore for having an outstanding pool of talent and an enabling environment which nurtures entrepreneurship. Outlining the success story of Singapore, Mr. Shanmugaratnam observed that the image of Singapore as a trusted investment destination with protection of intellectual property rights with a good business environment and people made it possible for the state country to attract Foreign Direct Investment. Putting forth the view that in the new knowledge based economy cities like Bangalore are leading the way in attracting FDI’s solely due to the availability of local talents and the efficiency and expertise in implementing projects. He also complemented CII for its role in building up the business relations between India and Singapore and added that CII’s relationship with Singapore is not only an Institutional one but a relationship of personal involvement.

In his opening remarks, Mr. Ashook Soota, Past President CII and Chairman and Managing Director, Mindtree Consulting private Ltd complemented Singapore for being a role model economy in terms of efficiency , transparency and integrity and added that the Singaporean economy have registered a GDP growth rate of 7.2% , this being one of the highest in the comity of developed countries. Mr. Rajaram, Chairman, Singapore Indian Chambers of Commerce and Industry (SICCI) said that around 2800 companies from India have set up shops in Singapore and now Singapore is considered as the meeting point and gateway to China and other ASEAN countries.

Skill Development and Affirmative Action: Foundations for a Sustainable, Equitable and Inclusive Economic Growth.


The Economic transformation of India is one of the greatest stories discussed globally. Indian economy over the years has grown with an enviable growth rates and it is projected to grow at an average rate of 9% in the coming years. India has benefited from the process of Globalization and improved technology and India has been able to diversify from primarily agricultural based economy to Knowledge based Economy. But the challenge before the nation as a whole is to work out solutions to make this growth more sustainable and inclusive so that all sections of the Society benefit from this growth. The foundation for such a vibrant Economic Growth in India can be laid through the Skill Development and Affirmative Action. This entails devising the right strategies which can address these critical issues.


Affirmative action is one of the core programmes of CII to actively involve the deprived sections of the society in the growth process. Around 130 companies under CII in South India have signed the corporate code on Affirmative Action. Many of the member companies are actively undertaking activities to promote the well being of these deprived sections of the society which involves Entrepreneurial training , Skill Development training, Scholarships for students , job oriented training programme for aspirants for IT/ITES jobs and other allied activities. CII (SR) is committed to the economic upliftment of the disadvantaged group. CII is running programmes throughout south India on developing the Skills for these deprived sections and also to nurture their entrepreneurial skills and make them more competitive in the free market. CII has entered into a Memorandum of Understanding (MOU) with the Entrepreneurship Development Institute, Ahemdadabd to train the budding entrepreneurs within these deprived sections of the society. The other challenge before the Government of India and CII is to the strengthen the education level of the SC/ST community. This has to be improved from the Grass root level by reducing the drop out rate of SC/ST students at the school level. This has to be supplemented with vocational and other training programmes.


Another critical area of focus of CII is the skill development in the country. The current growth that is being witnessed in the country if to be maintained requires the youth to be trained in multitude of Skills. Realizing this important aspect CII has embarked on a mission in South India to help nurture the skillsets of the Youth. CII strongly feels that a multi-partnership approach is the key for the development of skills in the India, cooperation among Government, policy makers, Industry, Researchers, Skill training providers and educators, development specialists and international agencies. Such a close cooperation will help to exchange and share information and ideas and discuss strategies for coping with the present and future demands of educational and technical skills for employment and income generation. CII is committed to the cause of Skills development in the country and has taken upon itself the task of being a catalyst in creating a skill movement in the country.


The above two initiatives of CII is closely aligned with the National Theme of ‘Build People : Build India. Although the Indian Economy has relatively good levels of education, there still exist severe skills shortages in certain areas. There is a need for a concerted effort to increase both academic and vocational skills to a broader section of the population. These activities of CII will strengthen the divide that exist in the society and also firms up the skills of the youth to Global standards. Also such activities will also enable to distribute the economic growth so that all sections of society benefits from this growth.

A conducive and an enabling environment a must for Industrial Development in Karnataka: CII

A conducive and an enabling environment which supports and nurtures industrial growth should be the prime driver in attracting investment in to the state said the Confederation of Indian Industry (CII) in a press statement here today. This statement was released by the Industry body at a time when Karnataka is facing stiff competition from the other southern states in attracting domestic and Foreign Direct Investments.

CII also highlighted that creating a good infrastructure in the state will attract investments which will fuel economic growth and create employment opportunities. CII recommends the Government to bring out an exclusive policy for encouraging the private sector to set up large industrial units in the state and added that such a policy should endeavor to provide incentives to the private sector with the government providing the much needed infrastructure which can generate and sustain employment in the state.

CII also added that creating a good investment climate in the state will help Karnataka to showcase itself as an ideal investment destination and will boost the confidence of the investors. Karnataka with a resource pool of skilled workforce, excellent training and allied institutions and a proactive government is better positioned to emerge as the most industrially developed state in the country provided the infrastructure and other factors are addressed at the earliest. Such an industrial development in the long run will create an economic growth that will address the regional disparities among the various regions in Karnataka by making the growth more inclusive and sustainable and most importantly giving an opportunity for all the sections of the society to benefit from the growth.

Naryanamurthy's views on globalisation

I don’t use the term offshore but I prefer to call it collaborative distributed development. Offshore somehow assumes that the work is entirely done in India. Our vision is derived from my definition of globalisation which is sourcing capital from where it is cheapest, sourcing talent from where it is best available, producing where it is most cost effective and selling where the markets are. We will leverage the power of talent wherever it is available. That is the right paradigm of offshoring.

Karnataka’s New Phase in Economic and Social Development


Karnataka have in the recent past made remarkable strides in terms of economic development and industrialization. The success story of Karnataka has led to the creation of a paradigm shift in creating new development models. With an impressive economic growth rate and high per capita income levels, the state is the lead runner in providing quality education and health facilities across the state. This was due to the proactive role played by the government of Karnataka in promoting industrialization through private and public participation with the firm belief that Industrial development can create more job opportunities and root out much of the developmental problems. Now a new successful phase is being unleashed in Karnataka in the Economic and Social Development front. This is being led none other than by the Industry bodies in Karnataka like the Confederation of Indian Industry (CII), Federation of Karnataka Chambers of Commerce and Industry ( FKCCI) Bangalore Chamber of Commerce & Industry (BCIC) and Karnataka Small Scale Industries Association (KASSIA). The focus of these institutions is not only on economic development but setting priorities for a long term social development by engaging the key stakeholders in the development process. Industry associations are working on solutions for the long term development of Karnataka by identifying the priority sectors which can generate employment and identifying industrial zones in underdeveloped regions in the state.

This has been done to support the efforts of the Government of Karnataka in promoting the state as an Investment destination. These key Industrial players have played an influential role in attracting Foreign Direct Investment (FDI), Industrial development of backward regions in the state, bridging the rural urban divide and boosting international trade and tourism efforts. The Industrial bodies have promoted the Karnataka state aboard and brought in technology and managerial expertise that is driving the state into a new growth trajectory. The associations has helped to build better business relations with countries abroad which has lead to spurt in investment in Karnataka and also helped the industrial firms in Karnataka to scout for business opportunities and acquisitions abroad. The associations have played the leading role in enhancing the competitiveness among the manufacturing and services industries by offering consultancy services, advising the Government and the other policy makers on the need for economic reforms and providing training to improve the skills sets of the employees working across the different sectors in the state. These industrial trade bodies are also undertaking diplomatic and trade missions abroad to facilitate trade and cooperation in the manufacturing and the services sector and promoting Karnataka as the most preferred Investment destination in the country. Credit is due to these bodies for removing the bottlenecks in investment and advising the government on the need for the structural reforms which has lead to the formation of single window clearing system to clear business proposals.
One of the important agendas of these industry associations is to enhance the investment in infrastructure and to support the mega infrastructure projects coming up in Karnataka. This has lead to the investment in the tune of Rs. 73, 937 crores, the highest among all the sates in India. The associations are working closely with the state Government to promote investment in this crucial sector which leads to better economic prospects in the coming years.
Karnataka possesses a vast pool of IT and BT professionals and with some of the country's best academic and premier research institutions is a preferred hub for over 100 R&D with several multinational and domestic companies. The Industry associations have worked closely with the Research and academic institutions in facilitating Industry Academia interactions. These interactions have helped both the Industry and academic Institutions to work on joint ventures and also to help the students of colleges to understand and develop the skill sets that is needed in the market.
CII in partnership with the Ministry of Panchayati Raj is rolling out Rural Business Hubs in Karnataka to help facilitate economic activity in the rural areas which are likely to emerge as the biggest growth markets in the near future. Under the proposed RBH plan, industry, both large and small will come together with farmers or local artisans to enhance the market value of rural products with the objective of market access for the rural poor and profitability across the value chain. The associations have also played a proactive role in promoting medical tourism in the state by promoting the state as a referral quality health destination which is supported by qualified and experienced medical professionals and reputed medical research institutions. These associations have also undertaken social development projects to improve the standard of living of the under privileged and working with the civil society to address some of the state’s developmental challenges.
Industrial and trade bodies have played the role of a touch point for potential investors and facilitated the growth of the small and medium Enterprises (SME’s) by helping them to identify opportunities and providing advise and guidance to prospective entrepreneurs. These associations have set up panels and forums to study the problems associated with the development of the SME units in the state and to train the SME’s on process and quality benchmarking to improve the productivity.
In Karnataka the successful Industrial policy resolutions and new schemes gave a fresh impetus to the growth and development of small industries. In the context of the impact of the WTO the Government was quick with policies and institutional support to help the sector and the sector began to get adapted to the Globalization requirements of skill, quality and price competitiveness of production including delivery schedule. Innovation of products and product design picked up, technology upgradation got accelerated and market access and deeper understanding of user and consumer requirements began to yield result. In the field of exports, the Small Scale Industry (SSI) sector has excelled many other states in terms of exports. Of this the electronics and computer software, readymade garments, silk products, gem & Jewelry, chemical and allied products and plastic goods are dominating. The Industry associations have played a crucial role in helping the SSI’s to adopt best quality practices, helping to upgrade technology and providing an environment to learn from best practices in India and abroad.
Karnataka is the new face of an India on the move .Industry associations in Karnataka are fast turning into development institutions with not only development of industries as the one of the objective but also working on inclusive growth by taking the benefits of Industrialization and economic growth to all sections of the society. In terms of the broader economic and Development Agenda, the Industry associations in Karnataka are building cross sectoral coordination and partnerships among Government, private sector and civil society to develop the state into an economic and global powerhouse.

Road Safety Measures for Organizational Excellence

According to a World Health Organization (WHO) / World Bank joint report, road traffic injuries were the 11th leading cause of death. Without appropriate action and multi stakeholder participation the report estimates that by 2020 this will outpace AIDS, Malaria and War as the world public health challenge. The private sector in India has been involved in multisector and safety initiatives because of the risks posed by the issue to core business activities and also an understanding that the factors driving the road safety facility require a total systems approach engaging all stakeholders. The Global Road Safety Partnership is a typical example of multi stakeholder partnership and Cooperation.

It is interesting to know that good road safety measures adopted and implemented in an organization have a close association in enhancing the operational efficiency of an organization and also creating a brand image for the organization. Better Road safety measures have a close relationship with employee satisfaction and productivity. Safety of an employee is a primary concern of any organization and a prerequisite for this task is a reliable knowledge about the effectiveness and efficiency of the Road Safety measures adopted by an organization and addressing the discrepancy existing in the system. The fact that the employees are safe on the roads while traveling to work and the fact the employees can relax while traveling to work in the morning have a close association with their productivity. .The Employees traveling for their daily work chores will have a strong feeling for their organization and it can act as a catalyst in building their commitment towards their organization.

From an Organization’s perspective implementing better road safety measures makes economic sense. Companies are not immune from the real cost of crash / accidents involving staff whilst driving in their own time for personal and private business. Added to the personal suffering of employees and families, organizations can suffer tremendous financial loss through downtime and lost production.

An improved approach to road safety and responsible driving by the individuals of an organization can lead to an enhanced public image. It can also serve as a value addition and can act as a corporate Social Responsibility initiative seen in the context that the organization is interested in promoting the safety of its employees apart from ensuring the safety of the general public. Road Safety Initiative for an organization is a Corporate Social Responsibility Initiative and also a unique opportunity to bring together an area of core competence and concern with a more Universal Social objective.

In addition to the individual benefits of enhanced safety through Good Road Safety measures an organization will see a reduction in their overall fleet fuel costs, vehicle incident rates, downtime, insurance premium and general maintenance costs. It will also enhance the operational efficiency of the Fleet Management system in an organization. It is also important to share the success of an organizations road safety initiatives and larger aspirations to stakeholders. This will create an enabling environment of sharing knowledge for a Social objective.

Indo –German Trade and Economic Relations:
Partners for Growth and Development in the 21st Century

Background:

India, the new economic powerhouse in Asia has emerged as one the most credible partners for bilateral economic and trade cooperation. The increasing clout of a nation which brands itself as the World’s largest free market democracy have indeed attracted countries from Europe , America and Asia pacific to forge strategic and long term bilateral cooperation with India. With an impressive GDP (Gross Domestic Product) growth rate of 9.2 % in 2006-07, India is the world’s second fastest growing major economy. Since the economic reforms which started in 1991, India has come a long way. The value of International trade has become more broad based with US, UK, EU, China and Japan emerging as the leading trade partners of India. With the advent of the digital age and with an Educated and young population affluent in English, India has emerged as an important back office destination for Global and Fortune 500 companies.

Over the years, the Indo- German Trade and Economic relations have evolved into a strategic partnership with a common outlook and with a consensus on tackling some of the pressing Global issues. Today, Germany is India’s 4th largest partner. The visit of the Prime Minister Dr. Manmohan Singh to Germany on the eve of the Hannover Messe, 2006 has reaffirmed the strategic partnership between India and Germany based on shared democratic values and shared common interests. Trade, Investment, Technological and Scientific collaboration in areas of Infrastructure, Energy and high technology (including space research) form the core of this strategic partnership. The relations is not only confined to Economic, Trade and political cooperation but also into development cooperation on wide ranging areas including Energy, Environmental Policy, Sustainable Economic Development, Health and Vocational Training. During Dr. Manmohan Singh’s interaction with Angela Merkel, Chancellor of Germany in 2006 the areas identified for strengthening Indo-German cooperation included Telecom, Engineering, Environmental Technology, Chemicals, Pharmaceuticals, Food Processing and Renewable Energy. And also many Trade analysts and Government officials from both the countries admit that one of the foundations of this enhanced economic cooperation would be the cooperation of Small and Medium Enterprises (SME’s) from both countries. SME’s in Germany are particularly strong in areas of Auto components, machine and hand tools, toys and pharmaceuticals and they can find cooperation with Indian companies operating in the mentioned domain. There is a strong felling within India among the Business class tof the high regards that Germany. The scope of Indo-German trade is immense especially as Infrastructure continues to improve and the reform agenda is furthered. Sectors such as software Development, Biotechnology and Entertainment hold immense potential for collaboration between the two countries.

Why German Companies should look at India as an Investment Destination.

India over the years has emerged as the Knowledge capital of the world with proven capabilities in the Information Technology, Financial Services, emerging manufacturing sector and most importantly highly skilled and resourceful workforce. With the economic reforms happening in India as a faster pace it makes economic and business sense for companies to look at India as the dominant player in the International arena.
India – a large and a growing market:

India is one of the world’s fastest expanding markets with proven capabilities in Research and development. Many German companies chose to enter India as they perceived it to be a large and high potential growth market. Size of the economy and its rapid growth has been major considerations for German companies to invest in India. The other key considerations for prospective German companies to enter India are
§ Huge Growth Market
§ Cost advantage
§ Be closer to Customer
§ Government Policies
§ People Advantage

India is an economy with strong fundamentals and many of the foreign investors are attracted by the stability of the economy. The other good reason for Investors to look at India is that Indian Economy would be growing at a staggering rate in the next 30 years and by 2050 India would be the only country to clock an annual growth rate above 3%.

India –An Emerging Global Manufacturing Hub

India's Development in the manufacturing sector and the advantages it offers as a source for manufactured goods has been recognized by German companies operating in the country. India's manufacturing sector grew at an average annual rate of 6 percent per year in the 14 years between 1990-91 and 2003-04. Currently the rate is at 11.2%. Further Indian manufactured products are now gaining acceptance in world markets. India already exports about US$ 50 billion a year in manufactured goods and this is increasing at a rate of 20 per cent a year. A study by CII on the manufacturing sector in India estimates that Indian manufacturing export has the potential to touch US $300 billion by 2015.The factors driving the entire manufacturing sector in India
a. Availability of quality manpower at low costs
b. Availability of raw material
c. Enhanced productivity

Many of the foreign firms setting up manufacturing plants in India have already identified the availability of skilled manpower as one of the driving factors for setting shops. India has a well developed designing and machining capabilities and ranks second to Germany in terms of the designing and engineering capabilities. The combination of availability of qualified engineers and designing capabilities give India a distinct competitive advantage

India - A Services Hub
India has long enjoyed a reputation as a destination for IT and business process outsourcing. Now, the country is fast emerging as a major center for cutting-edge research and development (R&D) projects for global multinationals. More and more companies in industries ranging from IT and telecommunications through pharmaceuticals and biotech are setting up ambitious R&D projects, in part to serve the Indian market, but also with an eye to delivering new generations of products faster to the global market.
Many of the global companies have set up their Research shops in India as India offers technically skilled manpower at lower cost compared to many of the developed countries. Most of the German companies operating in India are planning to either start or invest more on Research and Development facilities in India. German companies in India have successfully leveraged the advantages that India offers to set up R&D facilities and Business Process Outsourcing (BPO) operations.
According to a survey done by Economic Intelligence Unit (EIU) getting research done from India would offer 30% to 50% cost savings for a company and the survey added that the cost of innovation in India is 1/5th or 1/7th of what it will be in any other industarlised part of the world. In a study conducted by the Wharton School of business and published by the school magazine, it was found that the technology sector -- IT and telecom has the best results to show in outsourced R&D. India's leading technology companies -- Tata Consultancy Services, Wipro, Infosys, HCL Technologies -- and emerging companies like Ittiam and Sasken are beginning to build sustainable contract R&D businesses. This basically shows the emergence of India as an Ideal Services destination.
German companies in India have been leveraging India's advantages in services in a number of ways that include
a. Setting up R&D centers
b. Setting up BPO operations
c. Leveraging Indian manpower to provide consultancy services

For example, Indian capabilities in the high tech research influenced Carl Zeiss' decision to start operations in India. Baerlocher's globally integrated R& center in India was set up to leverage the skilled technical and engineering talent available