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

Speech written for the Hon’ble Minister Shri. Katta Subramanaya Naidu, Minister for Large and Medium Enterprises, Government of Karnataka for the Pravasiya Bharathiya Divas

It gives me immense pleasure to address you all in this year’s Pravasi Bharathiya Divas. I am addressing you at a time when India is dominating the global markets with enviable growth rates. I do appreciate the role played by all of you in contributing towards making this growth more sustainable. The Success story of India as an emergent Nation with a proactive leadership is the talk of the town. Indian Industries has entered into an atmosphere of higher competition in the era of globalization and India companies are making their presence felt globally by attracting Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII’s)

As you are aware, Karnataka is one of the most industrialized states in India and has shown remarkable strides in developing knowledge and manufacturing industries. 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 Social and Economic parameters. 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.

As you all know the often told success story of Karnataka in the Information Technology sphere .The Growth of Information and communication Technology (ICT) Industry in Karnataka was stupendous. The Hardware Industry in Karnataka is also growing at the same rate as the software industry .Karnataka has 50 % of all biotechnology companies in India and generates about 50 % of the total revenue in the sector. The Government also has supported the Manufacturing Industry in the state and this sector has played a crucial role in generating employment opportunities. The Government has also supported the infrastructure development in the state with massive investment through public private partnership.

The state has a legacy of high quality research institutions and the state as of now have more than 100 Research and development centers of various multinational and domestic companies. By the proactive actions of the Government of Karnataka, the state has emerged as one of the largest recipient of Foreign Direct Investment (FDI) in the country and is now known internationally as a technological and manufacturing hub.

The focus sectors for investment in Karnataka are Information Technology / Information Technology Enabled Services, Biotechnology, Pharmaceuticals, Engineering, Automobiles and Auto components, Manufacturing, Maintenance, Repair and overhaul services for aerospace, Infrastructure Development, Textiles and Food processing.

Karnataka has made spectacular strides in Industrial Development, e-governance initiatives, improvement of local governance, public private participation in infrastructure management, pioneering implementation of Panchayati Raj reforms, industrial friendly policies of the Government and the close cooperation between the Government and the Private Sector in branding the state as a unique investment destination.

Karnataka has one of the most congenial business environment with a large pool of skilled human resources aided by the presence of a large number of Engineering, Medical and other technical institutes, Investor friendly policies of the Government and a political environment which is stable and proactive in promoting industries. The Government is also promoting investment to tier II and tier III cities to promote a better investment climate and bridging the Socio-economic divide in the state. The state has been spear heading economic reforms and believes in the fact that a stable and a sustainable economic growth can be realized only by close cooperation between the Government and the private sector.

Karnataka has an excellent communication facilities and accessibility provided by railway, airport, national highways and seaports. Karnataka stands out among Indian states for its conservative policies, relatively healthy state finances, solid telecom infrastructure and easy availability of skilled workers.

Karnataka has over the years emerged as an ideal investment destination. The Government has played an important role in helping all sections of the society enjoy the benefits of the economic growth. The Private sector has partnered with the Government in addressing the development challenges and has laid the foundation of a strong public –private partnership in the state. This partnership has helped the state to drive the economy on a growth trajectory. The technological collaboration and the managerial expertise have not only helped the state to improve its competitiveness but also helped the government in undertaking projects in addressing the social and economic challenges, imparting training to the underprivileged sections of the society , industrialization and development of backward districts and helping the state to promote as an ideal investment destination.

I am taking this opportunity to request the active participation of all of you in the Development of Karnataka. In fact I take this opportunity to acknowledge the bonding relationship which you had with the state of Karnataka and admire the support and cooperation extended to us.

Let me convince you that Karnataka is your right partner for success and I look forward to an interesting and ever lasting collaboration and partnership for Development with all of you.

Thank you

Quebec – India Trade and Economic Relations a win-win Partnership

Trade and Economic relations between Quebec and India is a win -win partnership for both said Quebec Minister for Economic Development, Innovation and Export Trade Mr. Raymond Bachand addressing the captains of Industry during an interaction organised by the Confederation of Indian Industry (CII) in Bangalore today. Mr. Bachand said that a lot of synergies exist between India and Quebec which is the second largest province in Canada and said his state believes that the way forward for this synergy is the economic growth through Innovation.

Mr. Bachand said that over the years the world have seen the emergence of India as the most dynamic and vital economy and Quebec offers the right mix of resources , expertise and dynamics to partner with India. Mr. Bachand said that the world’s best companies have set up shops in Quebec and added that the state is the Research and Development Hub in Canada with 2.7 % of the GDP being spent on R & D Activities. The Quebec region is also an aeronautical Hub providing huge opportunities for companies based in Bangalore to collaborate. He further added that India and Quebec have lot of similarities in terms of values of tolerance and multiculturalism and commended on the quality of Engineering and scientific research students in India as one of the best in the world.

In his presentation, Mr. Jacques Daoust, Chairman of the Board and Chief Executive Officer, Investment Quebec said that the areas of economic cooperation between Quebec and India includes Aerospace, Life Science, Information Technology , Transportation, Energy and mining. Mr. A.K Saxena, Vice Chairman, CII Karnataka said that close relationship between Quebec and India is the way forward to strengthen the Trade and Investment. Meanwhile Alchemic Dream Inc, a Canadian company specializing in Customer Services announced an agreement with Comat Technologies a provider of outsourced business solutions. Alchemic Dream and Comat Technologies have partnered to capture a bigger market share through a new support center based in India, in order to further develop the growing demand in the online Industry

India and Brazil reinforce economic and trade relations

India and Brazil today reinforced the economic and trade relations and exuded that the target of bilateral trade for $10 billion is achievable. This was the highlight of the Brazilian Industry’s interaction with the captains of the Indian Industry organized by the Confederation of Indian Industry (CII) in Bangalore. Underlining the potential of Brazil as an investment destination, Mr. Armando Monteiro Neto, President, National Confederation of Industry (CNI), Brazil said that Infrastructure, Biofuel, Food Processing, IT and pharmaceuticals will drive the trade and economic relations between the two countries. The National Confederation of Industry (CNI) which is the apex industry body in Brazil with a membership of 2300 companies have played an important role in promoting economic reforms in Brazil and represented Brazil in international trade negotiations.

While asking the Indian Industry to invest in Brazil, Mr. Neto said that with a GDP Growth rate of 4.2% and with an inflation rate of 3 %, Brazil provides the Ideal investment destination for Indian Companies. In his opening remarks, Mr. N Reguraj, Chairman, CII Karnataka in his opening remarks said that a lot of complementaries exist between India and Brazil and similar Socio-Political –Economic background makes the two countries Natural Partners.

During the interaction BEML, the Indian Public sector enterprise said that they have signed an MOU to set up a manufacturing unit in Brazil to tap the Latin American Market and also Tata Motors, India's largest automobile company, and Marcopolo, the Brazil-based global leader in body-building for buses and coaches have entered into an understanding to set up a company in Karnataka to manufacture and assemble fully-built buses and coaches.

Non Conventional Energy, Aerospace collaboration, Biotech and Nanotech and Space Technologies are the other sectors which offer vast opportunities for Joint collaboration between India and Brazil, said CII.