ConfederationofIndianIndustry - The Growth Net€¦ · AN EXECUTIVE SUMMARY ... Steering Committee,...

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R E S T O R I N G H I G H E R G R O W T H I N E M E R G I N G M A R K E T S

7-8 APRIL 2016 | NEW DELHI

A N E X E C U T I V E S U M M A R Y

From L to R: , Co-Chairman Forbes Marshall and President, Confederation of Indian Industry; , Chairman of the Board,Godrej & Boyce Manufacturing Company Limited and Chairman, Ananta Centre; , Minister of Finance, Government of India; ,Chairman, Steering Committee, The Growth Net; Senior Member, Bharatiya Janata Party (BJP) and Former Member of Parliament, Rajya Sabha;

, President, Smadja & Smadja Strategic Advisory, Switzerland at the Inaugural Session

Naushad Forbes Jamshyd N GodrejArun Jaitley N K Singh

ClaudeSmadja The Indian economy’s place in the world

Confederation of Indian Industry

O R G A N I S E R S

An independent organization, is registered under the IndianTrust Act. It focuses on leadership development and encourages frank and opendialogue on the most important issues facing Indian society, to help foster itstransformation. The Centre also engages civil society, business, governments and

other key stakeholders on issues of importance to India’s development, foreign policy, strategic affairs andnational security.

The Centre serves as a convening body for exchange of ideas, broadening perspectives and enhancingcapacity to create sustainable solutions on a wide variety of issues.

Ananta Centre


The works to create and sustain anenvironment conducive to the development of India, partnering industry,Government and civil society through advisory and consultative processes.CII engages closely with Government on policy issues and interfaces with

thought leaders to enhance efficiency, competitiveness and business opportunities for industry through a wideportfolio of specialized services and strategic global linkages. It also provides a platform for consensus-building and networking on key issues. Extending its agenda beyond business, CII facilitates corporateinitiatives for integrated and inclusive development across diverse domains. In its 120th year of service to thenation, the CII theme of Build India - Invest in Development: A Shared Responsibility, reiterates Industry’s roleand responsibility as a partner in national development. Founded in 1895, India’s premier business associationhas over 8000 members from the private as well as the public sectors.

With 66 offices, including 9 Centres of Excellence, in India, and 9 overseas offices in Australia, Bahrain,China, Egypt, France, Germany, Singapore, UK, and USA, as well as institutional partnerships with 312counterpart organizations in 106 countries, CII serves as a reference point for Indian industry and theinternational business community.

Confederation of Indian Industry (CII)

Smadja & Smadja Strategic Advisory was established in 2001 in Switzerlandand in the US. The firm works with global corporations and government entities onglobal trends and strategic issues. Our mission is to help our clients navigate andleverage globalization, providing them with “actionable” insights and a “world view”

to help them manage the increasing volatility and complexity of a globalized world. The firm creates platformsof contents – from strategic, behind closed doors, seminars to high profile international conferences – that areknowledge and networking intensive, with significant take home value for the participants. Smadja & Smadjahas activities, clients and partners in Asia, North America, Europe, Latin America and the Middle East.

I N T R O D U C T I O N

he Fourth Annual Growth Net Summit 2016was a major economic meet, held in Indiaamidst gloomy global outlook and volatile

market conditions across the world. Focused onchallenges facing Asia, Africa, Latin America andother growth economies of the world; the Summitbrought together stakeholders from both developedand emerging economies on one platform to buildsynergies for increasing business opportunities,encourage innovation, and enhance job opportunities.

Launched in 2013, the Growth Net reflects thenew realities created by the emergence of newgrowth countries, which are rapidly increasing theirbusiness, economy, trade, and financialinteractions, and aspire to have a stronger voice inthe global economy. It serves as a catalyst todevelop fruitful dialogue among business groups,government officials, and civil society, from thecountries of the new constellation of growth, onhow to strengthen economic momentum andgenerate new sources of growth, through thedeepening of partnership strategies for rapidsustainable development in Asia, Africa, Latin

T

America and growth economies of the world.Themed

, the Fourth Growth Net Summit wasconvened in partnership with the Ministry of ExternalAffairs and Ministry of Finance, Government of Indiaon 7 – 8 April 2016 in New Delhi. The Summitbrought together more than 67 speakers from 39countries including business and political leaders,eminent media personalities, senior officials alongwith thought-leaders who shared insights and bestpractices to build economic resilience and generate

“Restoring higher growth in EmergingMarkets”

7–8 April 2016 THE GROWTH NET 4.0~ | 01

Arun Jaitley, Minister of Finance, Government of India at the Inaugural Session

From L to R: , Special Advisor to the Cabinet of Prime Minister Shinzo Abe, Japan; , Managing Partner, Agawa Partners, New York, Canada;, Minister of Railways, Government of India; , Vice-Chairman, Bharti Enterprises & Vice-President, CII; , Vice Chairman

and President Global Relations Forum, Turkey at the session

Tomohiko Taniguchi Jacques DemersSuresh Prabhu Rakesh Bharti Mittal Memduh Karakullukçu

Emerging Economies need much more infrastructure development: How to plug the capabilities gap?

02 | 7–8 April 2016THE GROWTH NET 4.0 ~

T H E S U M M I T 2 0 1 6 F O C U S E D O N T H E

E C O N O M I C P R O S P E C T S O F

A N D A N D T H E I R

I M P A C T O N E M E R G I N G M A R K E T

C O U N T R I E S – A N D T H E W O R L D

E C O N O M Y – O V E R T H E N E X T P E R I O D

C H I N A ,

I N D I A , J A P A N U S A

new business opportunities.The meeting featured keynote address by

, Deputy Prime Ministerof Singapore and senior Government of Indiarepresentatives, including , Minister ofFinance; , Minister of Railways;

, Minister of State for Finance;, Minister of State for Power, Coal and New &

Renewable Energy; , Foreign Secretary,Ministry of External Affairs; ,Secretary, Department of Economic Affairs, Ministry

Tharman Shanmugaratnam

Arun JaitleySuresh Prabhu

Jayant Sinha PiyushGoyal

S JaishankarShaktikanta Das

of Finance , Commerce Secretary,Ministry of Commerce and Industry; and Ram SewakSharma, Chairman, Telecom Regulatory Authority ofIndia (TRAI) amongst others.

Among the international business and thoughtleaders who led the discussions at the Summit were

, Vice-Chairman of Nissan Motor Co.Ltd, Japan; , Vice President,International Governmental Affairs, Ford MotorCompany, USA; , President, Asia SocietyPolicy Institute (ASPI) and Former Prime Minister of

Rita Teaotia

Toshiyuki ShigaStephen Biegun

Kevin Rudd

From L to R: , President and Chief Executive Officer, GE South Asia; , Senior Partner, Covington & Burling, USA;, Secretary, Department of Economic Affairs, Ministry of Finance, India; , Director General of the Confederation of Indian Industry;

, Managing Director, Investment Banking Division, CICC, China; , IG Patel Chair of Economics and Government, London SchoolEconomics and Political Science, the UK at the session

Banmali Agrawala Ralph Voltmer ShaktikantaDas Chandrajit BanerjeeHelen Cai Nicholas Stern

Doing what it takes to be on the winning side in the competition for FDI

From L to R: , Chairman, Steering Committee, The Growth Net Summit, SeniorMember, Bharatiya Janata Party (BJP) and former Member of Parliament, Rajya Sabha;

, Minister of State for Power, Coal and New & Renewable Energy, India;

N K Singh

Piyush Goyal


Australia; , President, Global HighGrowth Regions, Honeywell; ,Special Advisor to the Cabinet of PM Shinzo Abe,Japan; , President Tel Aviv University,Israel; , IG Patel Chair of Economicsand Government, London School Economics andPolitical Science, UK; and , President,Centre for Strategic Communication (STRAT M) andFormer Minister of Foreign Affairs, Turkey.

The Summit reflected on

, which are some of the key issues for allgrowth economies.

A special feature of the summit this year was thefor select

participants to informally interact with senior officialsand experts on key issues facing the Indian andglobal economy; the essential practices and policiesfor sustained growth; and the opportunities andchallenges ahead. The speakers included

, Deputy Governor, Reserve Bank of India;, Founder and Owner, The

Independent, Uganda; , MDand CEO, Bombay Stock Exchange; ,Senior Partner, Covington & Burling, USA amongstothers.

Shane TedjaratiTomohiko Taniguchi

Joseph KlafterNicholas Stern

Ya arYaki

growth strategies,employment and skills, finance, technology andinnovation, entrepreneurship, FDI in emergingmarkets, manufacturing, services, energy andinfrastructure, geopolitics, and emerging tradeblocks

closed-door sessions over breakfast

UrijitPatelAndrew M’wenda

Ashish Kumar ChauhanRalph Voltmer

ş ş

İ

The two crucial orientations thatconstituted the core of the agendaof the 4th Annual Meeting of TheGrowth Net were:

The countries of Asia, LatinAmerica and Africa are facingsimilar challenges of developmentand growth sustainability, thussharing, exchanges, brainstormingand synergy building, are key toachieving higher rates of economicgrowth and consequentialentrepreneurship, employment andnew energy.

The Global Economy continues tobe volatile and subjected toheadwinds, with developed as wellas developing countries across theworld facing huge challenges. Theoutcomes of The Growth NetSummit 2016 are expected tocontribute to a more stable andsecure world.

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Tan Tai YongTharman Shanmugaratnam A K Bhattacharya Jamshyd Godrej

, Executive Vice President (Academic Affairs) Yale – NUS College, Member, Management Board, Institute of South Asian Studies (ISAS) National University of Singapore;, Deputy Prime Minister of Singapore; , Editor, Business Standard; , Chairman of the Board of Godrej & Boyce

Manufacturing Company Limited and Chairman, Ananta Centre at the Launch of “India – Singapore Commemorative Book”


K E Y T A K E A W AY S

ON INDIA’S POSITION IN THE WORLDECONOMYIndia will be able to maintain a 7 – 7.5% growth ratedespite challenges in the global economy. Thesuccess story of the Indian economy will dependupon economic reforms such as Direct Tax reforms,and other incremental reforms related to banking,insurance, mining and civil aviation sector. TheGovernment of India is committed towards creatingnew growth centres to attract Foreign Directinvestment (FDI). Thereby making India the next bestdestination for international investment.

India’s aspiration to achieve higher economicgrowth can only be sustained through public privatepartnerships and other economic reforms such asimplementation of Goods and Services Tax (GST) bill.The government has enhanced its public spendingand is able to maintain strength in the economy. Theindustry should also share innovative ideas for apublic-private partnership on reforms calling forgreater participation. India has been able to make animpact in low-cost services across many parts of theworld.

An important change that has taken place is thenew confidence in India’s negotiations in world trade.India is now seen as a key player which has led toincreased trade with several countries across theglobe. India has a strong position that the DohaDevelopment Round should be continued and takento its logical conclusion.

Infrastructure is going to be the next growth enginethat will drive up the growth rate. The challenge forinfrastructure development is that it won’t pay foritself in 5-6 years, and thus, needs a long-termsource of financing that takes into account the life ofan infrastructure project itself and finances itaccordingly. Another challenge is to match investorsand investment opportunities and this can beachieved by creating platforms for engagement.

For emerging economies, speedy approvals –whether regulatory or from local authorities – is thekey for completion of infrastructure projects on time.The regulatory mechanism must be simpler, fair and

ON INFRASTRUCTURE DEVELOPMENT INEMERGING MARKETS

From L to R: , Managing Director & CEO, JCB India Limited; , President, Global High Growth Regions, Honeywell; , Minister of State forFinance, Government of India; , Executive Vice Chairman and Managing Director, Kotak Mahindra Bank; , Vice Chairman, Co-Chair of Asia/Middle

East-Japan Relations Committee, Keizai Doyukai & Vice-Chairman of Nissan Motor Co. Ltd, Japan at the

Vipin Sondhi Shane Tedjarati Jayant SinhaUday Kotak Toshiyuki Shiga


transparent, and have to be a level playing field. Itcannot be different for public sector enterprises andpublic companies.

Public-private partnership is another crucialcomponent for efficient infrastructure development.Infrastructure creation will not happen only frompublic investment but needs private investments inpublic infrastructure projects. Harnessing privatecapital, technology and management is thecentrepiece of this partnership.

While the multilateral development banks may

partially address some of the domestic political risksthat may arise when private investors gets involved ininfrastructure projects, they also risk getting into anew trap – international political risks. It is importantfor the new players like the AIIB and BRICS Bank tokeep a distance from political ends or becomingeconomic arms of global political strategy.

The world is becoming a more challenging place to

ON THE IMPACT OF NEW TRADE BLOCKS ONTHE EMERGING MARKETS

Pri ori ty areas for Emergi ng

Markets:

•

•

•

Infrastructure investment inindustrial sector

Corporate Sector acceleratingand leveraging technology

Assessing middle classexpansion over the next decade

Closing session Enforcing the growth imperative: What governments and business haveto do to make high growth THE national priority

From L to R: , President of the U.S.-India Business Council (USIBC); , Chairman, Telecom Regulatory Authority of India(TRAI); , Vice President, International Governmental Affairs, Ford Motor Company, USA and , Founding Trustee, Ananta Centreand Former Chief Mentor, Confederation of Indian Industry (CII) at the session

Mukesh Aghi Ram Sewak SharmaStephen E. Biegun Tarun Das

How will ‘Digital India’ and ‘Make in India’ help meet India’s growth challenges?


trade, especially in terms of all the regional tradeblocs, multilateral agreements and FTAs – thechallenge now is to make them work effectively.

The major impact of the rapidly evolving set oftrade liberalisation proposals – TPP and RCEP in AsiaPacific and TTIP in Europe is anticipated to be in rule-making capacity of the emerging markets. Withseven common member countries in TPP and RCEP,there is bound to be transfer of standard in somemanner. This transfer of standard is expectedly tohappen in WTO as well.

When the TTIP will finally be concluded, despitecurrent delays, it will revolutionise the structuring ofworld trade and its rules. Regulatory coherence,making of laws, tariff rate legislation, all will berationalised and cleared under the TTIP.

Due to their limited membership, the TPP and TTIPcannot replace the WTO as a forum where almost allcountries are represented and engaged with. TheWTO’s significance arises out of both normative andpractical requirements. While TPP aims to set up itsown system and it eventually will, it is expected toserve only its member countries. The future of anequitable world lies with the WTO.

Trade facilitation agreements are important as theyoffer opportunities to restructure supply chains,increase access etc. However, these agreements arealso very difficult to navigate, as there is a largedegree of overlap between them. A large number ofASEAN countries use FTAs for more favourablerates, but businesses are not benefiting to the degree

that policy-makers intended, due to this difficulty ofnavigation.

In the fourth phase of industrial revolution,technology not only acts as a facilitating tool but alsoas a monitoring tool which is leading to new forms ofeconomic and social organization and is contributingto the fight against corruption. There is an increasinggap between the nations that use technology more

ON LEVERAGING ICT TO LEAPFROGECONOMIC DEVELOPMENT

From L to R: , Chief Financial Officer and VP-Operations, iMerit Technology Services; , Chief Operating Officer, Smart ElectronicBusiness, LeEco India; , Anne and Elmer Lindseth Dean and Professor of Management Samuel Curtis Johnson Graduate School ofManagement, Cornell University, USA; , Senior Corporate Adviser and Former Permanent Secretary, Singapore; , Chairman,National Skill Development Agency, India at the session

Joydeep Mukherji Atul JainSoumitra Dutta

Tan Chin Nam S RamadoraiLeveraging ICT to leapfrog economic development: This is just the beginning…

From L to R: , President, Smadja & Smadja Strategic Advisory,Switzerland; , Vice Chairman, Co-Chair of Asia/Middle East-JapanRelations Committee, Keizai Doyukai & Vice-Chairman of Nissan Motor Co. Ltd, Japan;

Claude SmadjaToshiyuki Shiga


effectively than others. For example countries likeSingapore and Korea use technology as a medium tomonitor administrative services in cities but indeveloping countries the broadband access, 4Gservices and internet facilities are limited only tourban areas.

There’s been a lot of discussion in recent yearsabout how a large section of jobs are disappearingbecause of artificial intelligence and automatedsystems. However, if you look at the history,technology also helps create jobs.

There is a need to ensure that benefits oftechnology trickle-down to the deprived sections ofthe society as a powerful instrument for povertyalleviation; integrate tens of millions of people innational and international economic processes;boosting development; and helping society tofunction in a more productive manner.

ICT is a critical enabler that plays a role intransparency and efficiency. Financial inclusion, foodsecurity, healthcare, education and so on are allpriority sectors that the government must focus on.The number of technology enabled transformationsis remarkable.

The slowdown of the Chinese economy is having a

ON THE RISKIER GEOPOLITICALENVIRONMENT AND ITS IMPACT ONGLOBAL ECONOMY

significant impact on the global economy and itremains to be seen how the government in Beijingwill be able to tackle the challenge of sustaining ahigh enough growth level while sustaining thenecessary structural reforms required to go into anew economic model. The low crude oil prices maylead to political and economic instability in countriessuch as Venezuela, Nigeria, and Russia while the Gulfmonarchies are struggling to diversify theireconomies and reduce their overwhelmingdependency on oil revenues.

Serious ongoing economic and politicalchallenges in the European Union such as enduringlow growth and high unemployment, the migrantscrisis, the terrorist threat, political divergences amongmembers states, and the inability of Europeanpolitical leaders to come up with appropriatesolutions to these challenges will continue to affectnegatively European prospects and to impact oncountries that rely on their economic interaction withthe European Union.

With regard to Syrian civil war, Russia hasemerged as a major player and is expected to protectthe hold of the Assad regime on Syria as long as theregime toes Moscow’s line or else even Russia will betempted to push for regime change.

The US-India relationship has experiencedradical transformation in the last 25 years.Political and economic issues are the centrepiece

S Jaishankar N K SinghJamshyd N Godrej

, Foreign Secretary, Ministry of External Affairs, Government of India; , Chairman, Steering Committee, The Growth Net Summit; Senior Member, Bharatiya JanataParty (BJP) and Former Member of Parliament, Rajya Sabha, India; , Chairman of the Board, Godrej & Boyce Manufacturing Company Limited and Chairman, AnantaCentre at the session at the session Diplomacy for higher growth


of this engagement. The relationship is more orless consistent; a change in administration isunlikely to result in any change in policy. The moreIndia asserts its wil l ingness to cope withproblems, the more India’s voice would belistened to in Washington.

China has witnessed high growth rate in the last 25 –40 years with an average rate of 8 to 10%. However,it is important to note that each economic growthmodel has its limits and Chinese model has reachedits saturation point.

While China have a globally scalable economicstrategy, they are experiencing a slowdown. Itsgrowth rate is down to 6 per cent and is unlikely torise above that in next 5 years. This makes Chinamost uncertain driver of change in the world.

At present, the Chinese economy is changingits gears from mass production of goods tomanufacturing of high end technological productswith increasing investments in research anddevelopment.

The restructuring of Chinese economy will have ahumongous impact on the steel sector as half of theworld’s steel is manufactured in China. The collapseof the global steel industry is in many way attributableto China slowdown. Therefore, manufacturing hubs

ON THE IMPACT OF CHINA’S SLOWDOWN ONTHE GLOBAL ECONOMY

situated in developing and developed nations willhave to reduce their production pace until theChinese economy reaches its stability point. Thenations exporting to China are already feeling thepinch of the reduced demand.

Over the last 30 years, the ODA program of Japanhas played a very important role in ensuringdevelopment and financing major projects in anumber of Asian countries.

The rise of labour costs and constant changes ofregulations in China have given a fresh thoughts tothe industrialists in Japan to turn their attention toother markets. The thrust for Japan’s involvement inAfrica is driven by the awareness to enrich andempower women in the region. The strategy is toinvest in the human capital and educate the localworkforce impart skills to enable them build their ownindustrial base.

Although most of the Japanese corporations havemade record profits in recent years, this has not beentranslated into surge in demand in the country. Thismissing link has been a major concern for Japan’seconomy. Nevertheless, ‘Abenomics’ have played akey role in enabling the youth in seeking employmentin corporates. Hopefully, the next generation ofJapanese entrepreneurs will be even more engaged

ON JAPAN’S ENGAGEMENT IN EMERGINGMARKETS

Mistakes to be Avoided:

•

•

•

Increased wealth gap

No distribution of growth

Neglect of Small and MediumEnterprises

From L to R: , Secretary General, Consumer Unity & Trust Society (CUTS) International;, Vice Chair of Corporate & Investment Bank, Asia Pacific & Head of Global Transaction

Banking, Asia Pacific, Singapore; , Member of Parliament, Lok Sabha and

Pradeep MehtaLisa Robins

Jyotiraditya Scindia


in countries in like India.The involvement of Japanese corporations (or

that of other countries) in emerging markets hasbecome one of their key component of sustain-ability or even survival strategy. The sustainability ofthis relationship between these corporations andthe recipient countries has to be establishment of awin-win paradigm whether by bringing the type ofmanagement that fits the culture of the recipientcountry or by contribution through productivityimprovement.

ON US ECONOMY’S IMPACT ON EMERGINGMARKETSThe United States, apart from being the largesteconomy in the world, has been the driving forcebehind the world economy. In terms of job creationand economic stability, the US economy hasemerged stronger since the 2008 economic crisis.However, the rebound in the US economy is notparalleled by the rise of emerging markets.Uncertainty about China’s economic growth haveraised concerns about vulnerability of emerging

former Minister of State for Commerce and Industry, Government of India; , Commerce Secretary, Ministry of Commerce and Industry, Government of India; , President, AsiaSociety Policy Institute (ASPI) and Former Prime Minister of Australia; , Chairman of GRF Task Force on International Trade; Permanent Representative of Turkey to the WTO (F); Directorof Trade Studies, TEPAV; Board Member, i ecam, Turkey at the session

Rita Teaotia Kevin RuddBozkurt Aran

Şş The new geography of trade: what will be the impact of the changing trading blocs for emerging countries?

From L to R: , Chairman, Ambuja Neotia Group; , International Affairs Advisor, Squire Patton Boggs and formerAmbassador of US to India; , Member of Parliament, Lok Sabha and Chairman of the Parliamentary Standing Committee on External Affairs;

, Chairman, Ananta Aspen Centre and Former Special Envoy of the Prime Minister of India; , President, Centre for Strategic Communication(STRAT M), Former Minister of Foreign Affairs, Turkey at the session

Harshavardhan Neotia Frank WisnerShashi Tharoor S K

Lambah Ya ar YakIş ş

İ A riskier geopolitical environment and its impact on the global economy


markets. Apart from India, many emergingeconomies including Latin American economieshave hit the historic bottom which has raiseduncertainty in the market about the growthprospects of the emerging and developingeconomies. Furthermore, US internal politics mayalso add to the element of uncertainty about thefuture global economy.

Overall, there would be positive impact on theemerging markets with US consumers havingmore money to purchase exports from abroadand US exporters having greater resources toinvest in emerging economies. The role of theFederal Reserve that has played an important rolein stimulating the economy. Federal Reserve Bankhas been using unconventional monetary policy“quantitat ive easing” in which they werepurchasing government and other securities onthe market in order to lower interest rates andincrease the money supply. This was designed tostimulate borrowing and spending in the US but atthe same time as expected the lower cost ofcapital also led portfolio managers to pursuehigher rates of growth in emerging markets andhigher risk assets.

In addition, extremely low interest rates ledborrowers in emerging markets at both corporateand government level to incur significant debt indollars overseas. From 2009-2014, an enormous

inflow of capital to the magnitude of 5 trilliondol lars into emerging markets which real lyhelped boost the growth rates in those marketsto well above the advanced economies. It hascreated some r isks for US economy andemerging markets.

The Interconnected financial markets along withUS political process do add a degree of uncertaintyand potential volatility in terms of the impact of theUnited States on growth in emerging markets andelsewhere in the years ahead.

From L to R: , Professor, Department of Politics and Public Administration, The University of Hong Kong; , Ambassador-at-Large, Special Envoy toAndhra Pradesh and Chairman, Institute of South Asian Studies (ISAS), Singapore; , President, Smadja & Smadja Strategic Advisory, Switzerland and ,Member of Parliament, Lok Sabha

Richard W. X. Hu Gopinath PillaiClaude Smadja B J Panda


“We have a huge potential to create demand in different partsof the country. To address the gap, the right policy is needed.

If we don't have the right policy it will not work. Gettingproper investor interest into policy is key for the success of

the policy itself. We are exploring how to get more and moreprivate interest in infrastructure development.”

—SURESH PRABHU, Minister of Railways, Government of India

I N C O N V E R S A T I O N W I T H . . .

“The low oil price is the silver-lining for the Indian economy.This has helped us maintain basic macroeconomic parameters.

Fiscal and current account deficits are at reasonable levels,inflation is broadly under control, interest rates are moving in

the right direction, foreign exchange reserves are high... severalfactors are contributing to India’s growth. The Centre remainscommitted towards creating a favourable environment for a

better investment climate in every corner of India.”—ARUN JAITLEY, Minister of Finance, Government of India

“India is under-performing its productivity potential. If welook at what Korea or China did at an equivalent stage,

they had much faster productivity growth… However, Indiais moving in the right direction and doing a lot of thingsright. It has tremendous potential to achieve things that

really matter… I have full faith in India’s resilience.”—THARMAN SHANMUGARATNAM, Deputy Prime Minister of Singapore



“India presents a trillion dollar opportunity over the next 15years in the energy space alone. When we look at theworld as a whole and advancements in technology, we

could actually look at re-energising higher growth, not onlyin emerging markets, but also in the developed world.”

—PIYUSH GOYAL, Minister of State for Power, Coal and New & Renewable Energy,

Government of India

“A series of disruptions in the Westphalian idea of sovereignstates poses the biggest challenge to the internationalsystem. We are witnessing the beginning of a new era.

Threats emanating from non-state actors, disruptivetechnologies, interconnectedness and globalization of the

world are different facets of the same shared reality.”—SHASHI THAROOR, Member of Parliament, Lok Sabha and Chairman

of the Parliamentary Standing Committee on External Affairs

“The reason why US remains a resilient economy isbecause it is an engine of innovation and technological

advancements and that could have a positive impact onemerging markets. Technological innovation in productionof clean energy could have a profoundly positive impact

on India, China and other emerging economies.”—KENNETH I. JUSTER, Managing Director, Global Public Policy and ESG,

Warburg Pincus, USA


“There may not be a fixed paradigm about whatconstitutes big bang reforms. It is the incremental

reforms that alter the macroeconomic picture… Theaggregation of the important incremental reforms is

what really constitute big bang reforms.”—N.K. SINGH, Chairman, Steering Committee, The Growth Net; Senior Member,

Bharatiya Janata Party (BJP) & Former Member of Parliament, Rajya Sabha, India

“The Japanese way is not to send hundreds or thousands ofworkers from Japan to African countries, but to encourage the

local workforce to get engaged as much as possible inbuilding their own infrastructure, thereby giving a sense of

ownership to their local communities.”—TOMOHIKO TANIGUCHI, Special Advisor to the Cabinet of PM Shinzo Abe, Japan

“While mega regional (trade blocks) areextremely significant and are going to strongly

influence the agenda of global trade in theforeseeable future, it is still the WTO where wehave to engage and devise global trade policy.”

—RITA TEAOTIA, Commerce Secretary, Ministry of Commerce &

Industry, Government of India

“Technology along with open markets and free trade holdscrucial ground in the future and will provide solutions to the

problems faced by the growing economies worldwide.”—TOSHIYUKI SHIGA, Vice Chairman, Co-Chair of Asia/Middle East-Japan Relations

Committee, Keizai Doyukai & Vice-Chairman of Nissan Motor Co. Ltd, Japan


“China has committed to invest a very large amount of moneyon various projects, like the One Belt One Road. When the

Chinese President visited Pakistan, he mentioned investmentsof over $40 billion in Pakistan… several large commitments that

China has made which it cannot take through… many of thecountries whose expectations have been raised to absorb these

projects and benefit from them – they will have a problem.”—GOPINATH PILLAI, Ambassador-at-Large, Special Envoy to Andhra Pradesh and Chairman,

Institute of South Asian Studies (ISAS), Singapore

“India and China are rocket boosters of growthfor the next 20 years, given that the governments

act as growth drivers rather than barriers.”—SHANE TEDJARATI, President, Global High Growth Regions, Honeywell

“A new risk arises everyday while the old ones spillover and pose a threat to nations across the world…

We need to build resilience to global risks.”—HARSHAVARDHAN NEOTIA, Chairman, Ambuja Neotia Group

“Make in India has to be a Make in India for the world.We need pro-active state governments to implement

projects like Make in India. The government has to createa policy to unleash its market potential. Expanding

exports and a confident embrace of trade liberalizationmust form the core principles of Make in India.”

—STEPHEN E BIEGUN, Vice President, International Governmental Affairs,

Ford Motor Company, USA


“The political will underpinning WTO’s negotiationsthrough the Doha Round is evaporating. The number

of protectionist measures are rising… the largerpicture is that global free trade sentiment is

evaporating and global protectionist sentiment rising.”—KEVIN RUDD, President, Asia Society Policy Institute (ASPI) &

Former Prime Minister of Australia

“The emerging global economic scenario has raised concernsabout the fragile global recovery. With falling oil prices and volatilityin large economies like the US, EU and China, growth forecasts

have become muted. In the face of worries about a globalslowdown we need sound policy responses. The Growth Net

summit brings together practitioners and experts to find solutionsfor some of the most pressing issues confronting us today.”

—JAMSHYD N GODREJ, Chairman of the Board, Godrej & Boyce Manufacturing Company

Limited & Chairman, Ananta Centre, India


“The reason for the slowdown of the Chinese economy isbecause on the one hand the traditional economy is declining,

while on the other the new economy is rising up. But the criticalmass of the rise of the new and the decline of the old has not yetequalised. Hence the present crisis, hence the present transition.

It means that in the last 25 years China was a competitor in anumber of sectors, while other high-tech/new economy sectors

were untouched/quasi untouched by Chinese competition.”—CLAUDE SMADJA, Founder & President, Smadja & Smadja, Switzerland


“Our main focus is to make domestic demand more robust,by not merely cash transfers, but by investing in infrastructure,

irrigation and productive assets… Also, to have a low costeconomy, we need to reduce our transaction costs, and

therefore the emphasis is on the ease of doing business.”—SHAKTIKANTA DAS, Secretary, Department of Economic Affairs, Ministry of Finance,

Government of India

“If you look at our neighbours and ask them today, what isit that you want? Each one of our neighbours would like

India to invest in projects like infrastructure, andcollaborate in other areas… Some geo-political volatilityarises from the economic situation, particularly in many

developed economies, and there is a tendency of politicalpopulism to exploit that.”

—S JAISHANKAR, Foreign Secretary, Ministry of External Affairs, Government of India


“China has had a high growth rate in the last 25-40 years, atan average rate of 8 to 10 percent. Each economic growth

model has its limit, and Chinese model has reached its limit.”—RICHARD W. X. HU, Professor, Department of Politics & Public Administration,

The University of Hong Kong

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ConfederationofIndianIndustry - The Growth Net€¦ · AN EXECUTIVE SUMMARY ... Steering Committee,...

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