Opportunities For India Inc Drives Partnership Summit

The common theme of today's deliberations at the CII Partnership Summit was opportunity for Indian trade and industry. There were sessions dedicated to China, Afghanistan and the World Trade Organisation (WTO).

Speakers at a session on "What drives China" said while China posed threats, it also provided export opportunities for India, as it has recently made an entry into the WTO.

Speakers at the session chaired by the past president of CII and the vice -chairman and senior managing director of SRF Ltd, Arun Bharat Ram, said that with India's current foodgrain surplus, reduced tariffs will result in an attractive export opportunity in China for the country.

According to CII's senior adviser T K Bhaumik, China's total imports are estimated to grow by an additional $350 billion to touch $600 billion by 2005 and if India is able to secure even one per cent share of the additional market, India's export could double. He, however, warned that having made huge commitments, China could demand similar concessions from other countries including India, at WTO's next ministerial meet in 2003.

Bhaumik said by 2005, China will have to undertake nearly 2,000 legislative changes to comply with WTO commitments and these changes could see the communist power emerge as a transparent and a true market economy.

JM Morgan Stanley Securities' vice-president Chetan Ahya made an interesting point about how China was using the divestment route to infuse fresh funds into state-owned enterprises, while at the same time ensuring that there was one strategic investor in each of the divested enterprises.

At a session on Afghanistan, chaired by Wartsilla Group chairman Subodh Bhargava, India's special envoy to Afghanistan SK Lambah said multi-billion dollar business opportunities awaited India Inc in the war-ravaged country.

He said the Indian industry, especially those engaged in the core sector, can make use of the opportunity in Afghanistan.

Lambah said the World Bank and other multilateral agencies would soon take a decision on disbursing around $9-billion financial assistance to the interim government at their meeting in Tokyo on January 20-21, 2002. He said India Inc should capitalise on this opportunity as well.

At the sidelines of the summit, CII's secretary general Tarun Das announced that the a trade office in Kabul would be opened soon to provide logistical support to Indian companies.

Confderation of British Industry secretary general Digby Jones was of course clear on the fact that only political will could quicken the reforms process in India. He wanted Indian leaders to hurry up the reforms process and also break down trade barriers if the country wanted to become wealthy. He wanted India to learn from the UK which was the pioneer in privatisation.