FICCI Knowledge Papers for 2012-13

KNOWLEDGE PAPERS 2012-13

India Football - The Rising Billion*

Dispute Resolution in Tax Matters: A Discussion

Paper*

Abstract: FICCI has taken up the responsibilities to bridge the knowledge gaps to aid the football development in India and to share the real time and up to date information about ongoing initiatives.

India Football: The Rising Billion is the fourth in series knowledge paper on business of football in India released at

the Soccerex European Forum, Manchester, UK on 11 Apr, 2013. This publication is relevant and useful for Indian and international football community with the interest in developing Indian football. It presents an overview of market forces and public sentiments around the football in the country with dedicated chapters to initiatives by national and international apex bodies, besides strategic investments by Corporates from India and abroad including leading premier league clubs.

It gives relevant and up to date information to investors and international experts to become the stakeholders in growing Indian football sector and take first mover advantage in this long term development process as there are a multitude of opportunities for experts, educational groups and corporates to make profound and lasting difference to the future of Indian football.

Forging India Germany partnerships in skill development report was released by Hon. Union Minister for HRD Mr. Pallam Raju at Berlin on 10th April 2013, on the sidelines of Indian PM visit to Germany. This report focuses on the partnerships between Indian and German skill providers on various fronts. The report captures key partnerships, MoU’s ,Joint projects between the two countries and

prospects of future collaboration.

One of the key concerns of our constituents today is the prolonged litigation on tax matters and the time it takes to resolve a dispute. At the same time substantial revenues get locked up in disputes; some of which could have otherwise accrued to the receipts of the Government.

In the above backdrop, FICCI has taken the initiative to analyse the existing system of resolving disputes between the taxpayers and the tax administration, identify the shortcomings and suggest possible measures which could expedite the dispute resolution in a fair and transparent manner and consequently lessen the hardship of the taxpayers. “Dispute Resolution in Tax Matters” is a discussion paper published by FICCI recently and submitted to the Finance Minister on 9th April; 2013. The paper is aimed at initiating a discussion which could result in acceptable measures to improve the existing Dispute Resolution Mechanism in direct and indirect tax matters.

http://www.ficci.com/publication-page.asp?spid=20239



Forging India-Germany Partnerships in Skills

Development*

Towards the GST - An Approach Paper*

India as A Hotspot For Inbound Tourism – reigniting destination appeal*

Abstract: In order for a fundamental fiscal reform, such as the GST, to succeed, it is imperative that all stakeholders are fully on board and are in agreement with the underlying proposals. Under these circumstances, it is appropriate and indeed obligatory for us to share our thoughts on various aspects of the GST positively and proactively with the Government of India and the Empowered Committee, so

that these may be considered and deliberated upon, before finalising the dual GST in all its dimensions.

In the aforesaid backdrop, FICCI had organised an Interactive Session on GST with Mr. Sushil Kumar Modi, Hon’ble Deputy Chief Minister of Bihar on April 22, 2013 at Mumbai and also released a document “Towards the GST – An Approach Paper” on this occasion. The document lists out some key issues concerning GST and FICCI’s viewpoint thereon. The issues covered include the rates of GST, threshold limits for exemptions, the administrative set up, the transition arrangements for switch-over to GST, the IT Systems necessary for data capture etc.

Both the documents viz. “Dispute Resolution in Tax Matters” and “Towards the GST” are accessible on FICCI’s website.

Abstract: The Paper talks about Demanding operational clarification and clear distinction at the central level, the Study urges amendment of the Prize, Chits and Money Circulation Schemes (Banning) Act, by:

(a) First, defining Direct Selling including Multi-level marketing.

(b) Second, there needs to be an explicit qualification explaining that direct selling is not to be interpreted as a money circulation scheme.

(c) Third, a Pyramid scheme has to be defined, so that people know what is being prohibited. This will protect direct selling companies, protect consumers and facilitate enforcement.

Overall, India needs a more systematic policy on DS that is based on its own constitutional structure and also the realities and idiosyncrasies of the Indian economy.

The study examines the Inbound tourism scenario and the initiatives undertaken by the Ministry of Tourism, Government of India as well as the marketing and promotional initiatives undertaken by the various states. The key messages and recommended policy actions given in the report to promote foreign tourist arrivals in India are focus on innovative marketing campaigns and tourist facilitation

services, waive tourist visa fees in targeted destinations, Improving destination connectivity, wayside amenities and security, Standardization of rates and fares, concerted efforts to offer value for money, Rationalization of the tax structure and licensing regime, Extending the infrastructure status to 'all' hotels and tourist accommodation units and single window clearance.




Direct selling in India: Appropriate Regulation Is the Key*

* Free Report ** Paid Report

KNOWLEDGE PAPERS 2012-13

Integrating MSMEs with the Global Value Chain*

Knowledge Paper Released during the Conference "Poly India 2013”*

FICCI MSME Summit 2013 is positioned to address the theme of "Integrating MSMEs with the global value chain". In order to highlight the imperatives of becoming a part of the global value chain as well as the opportunities to align MSMEs’ operations and processes with the value chain, the “FICCI-Grant Thornton Report” highlights specific models and approaches that MSMEs could explore to plug into new market opportunities. The report also provides an insight into

innovative marketing tools, along with ways in which traditional strategies could be sharpened as companies strive to become globally competitive. To gauge the Indian business environment vis-à-vis its ability, need and intention to become a part of the Global Value Chain, Grant Thornton and FICCI also undertook a survey covering a number of Indian MSMEs.





Business Model of Service Delivery and MSME Analysis of select cases in India*

India & Sub-Saharan Africa: Mirage of Perceptions*

In November 2010, FICCI had joined hands with GIZ – SIDBI for a project on “Serving MSME Serving India” within the framework of MSME Umbrella Programme being implemented by GIZ and SIDBI. This report analyzes the business model of a selected list of those business development service (BDS) providers in India, which focused on delivering nonfinancial business development services to the MSMEs in India. The objective of this report is to identify

the key operating principles for the BDS providers in creating self sustainable and scalable business models focused on the needs of the MSMEs.

Plastic industry is making significant contribution to the economic development and growth of various key sectors in the country namely: Automotive, Agriculture, Construction, Electronics, Healthcare, Textiles, and FMCG etc. The sector has been growing at a very good pace at above 10% for the past many years and is also highly employment intensive. With a turnover of above Rs.90,000 crores and employing above 3.5 million persons (both directly and indirectly) the

sector is making good contribution to the national economy. The engineering plastics industry has evolved significantly in the past decade with rapid increase in applications of high performing engineering resins with enhancing properties, such as strength, high weather resistance, light weight and high workability. This segment of industry has huge potential for growth waiting to be tapped

India has emerged as one of the world’s growth engines. While growth in the recent past is much celebrated, it has not percolated to the larger masses. Sub-Saharan Africa has also been growing fast since the last decade and has drawn optimism from many. But associations of poverty, instability, corruption and civil strife etc. have continued to mar the perceptions about the region in the minds of the larger population in South Asia. This commentary is an effort to

compare India and Sub-Saharan Africa to show that certain Sub-Saharan African countries fare better than India in terms of the select few socio-economic indicators. The article aims at stirring discussions about the ignorance about Africa and changing the general sense of pessimism around African socio-economic development

Knowledge and Strategy Paper on Technology Upgradation in Chemicals & Petrochemicals Industry*

The Indian chemical industry is an integral component of the Indian economy with Key linkages to downstream industries such as automotive, textiles, consumer durables, engineering, food processing etc. The industry produces and supplies more than 80000 products. The domestic demand is rapidly increasing, and is being fuelled by approx. 200 million

Indian middle class consumers. The New National Manufacturing Policy has set the target of increasing the share of manufacturing in GDP to at least 25% by 2025 (from current 16%). The Indian Chemical industry needs to be globally competitive as also sustainable. And for that to happen it needs to adapt latest technologies which are water/energy efficient as also green and safe. The chemical industry in the coming decades has to promote sustainable development by investing in technologies that protects environment and stimulates growth while balancing economic needs and financial constraints. This Knowledge Paper gives special focus to this aspect.

The Background Paper for the BRICS Business Forum Meeting 2013 delves into the economic aspects of the grouping which has established a firm foothold in the global economy in the last decade. The Paper provides an insightful approach into the economic dynamics of Brazil, Russia, India, China and South Africa which command almost 27 per cent of the

global gross domestic product in purchasing power parity terms and 20 per cent of global gross domestic product in nominal terms.

Global FDI flows into the BRICS countries increased from US$ 232 billion in 2010 to US$ 280 billion in 2011, which is almost 18 per cent of total global FDI flows, while outward FDI flows was to the tune of US$ 145 billion. Intra-BRICS trade grew by nearly 30 per cent in 2011 to touch US$ 275 billion. The Paper suggests several areas of fruitful cooperation amongst the BRICS countries like agriculture, infrastructure, healthcare which if tapped can catapult the grouping into more influential orbits.

Maize is the most widely distributed crops of the world. Maize ranks first in world production followed by wheat and rice. It is being widely used for food, feed, industrial raw material and ethanol production. India ranks sixth in global maize production, contributing 2.4% of world production, however, the country lags far behind in productivity. It is

understood that with the increasing demand for value added foods & industrial requirements, maize will hold its share as an important cereal crop. Besides highlighting the potential and opportunities in the country, the report also focus on major technological breakthroughs in maize cultivation.




Background Paper for the BRICS Business Forum

Meeting*

Maize in India 2013*


Background Paper: Interactive Meeting with Mr. Ajay Maken, Hon'ble Minister for Housing & Urban Poverty Alleviation, Government of India*

FICCI Working Paper on Health Insurance Fraud*

As per the report of the Technical Group on Urban Housing Shortage (2012-17) constituted by the Ministry of Housing and Urban Poverty Alleviation, Govt. of India, there is a shortage of 18.78 million dwelling units in India. Housing and construction sector is the second largest employment generating sector in India and provides employment to more

than 35 million people.

If given proper impetus, the sector can become one of the significant drivers for the ‘double digit’ growth. The background paper throws light on some of the key issues which are impacting real estate industry and suggests some solutions to the challenges.

Today Indian Legal Industry faces challenges from unscrupulous traders and manufacturers who are indulging in smuggling and counterfeiting activities. This jeopardizes the interest of consumers, legal industry, and the government as they end up robbing these stakeholders in one way or another. Internationally too this has been a well established

and quantified menace which has grown rapidly in the last decade.

In India, there has been no authentic research or data available on this growing activity which can seriously harm the Indian economy. In order to determine the size of the problem, FICCI CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) had assigned TARI (Thought Arbitrage Research Institute) to conduct a research study based on secondary government data in seven sectors.

These sectors are Alcohol, Tobacco, FMCG (Packaged Food), Mobiles, FMCG (Personal Care), Computers, and Automobiles. On December 20th, 2012, FICCI CASCADE released the findings of TARI on this issue and they have quantified that the government loses INR 26,190 crores and the legitimate industry loses 1,00,00 crores in these 7 sectors along with Pharmaceuticals because of this illegal activity.

Abstract: The working paper on “Health Insurance Fraud” developed by the FICCI taskforce on the subject encompasses the definitions of fraud and abuse, different parties involved in various types of health insurance fraud, triggers that represent possible presence of abuse and fraud and the actions that could be considered at various levels.

The paper also captures the issues concerning inadequate legal provisions and concerning code of conduct for medical practitioners. The ideas presented are categorized into one of three broad areas: Process Improvements and Modifications; Industry Intervention; and Government & Regulatory action”.




Socio-Economic Impact of Counterfeiting, Smuggling and Tax Evasion in Seven Key Indian Industry Sectors*

FICCI Report on FDI in Retail*

ACCESS TO Medicines & Global Outreach SUMMIT*

Abstract: While the impact is expected to be significant investments in infrastructure and supply chain, and challenges on job losses may be over stated. The objective of this discussion note foreign direct investment (FDI) regulation in retail from opening up of FDI in retail for various stakeholders this note includes secondary literature review,

Booz & Company analysis and a study of case studies on impact of FDI in retail in other emerging markets

Abstract: This White Paper showcases the dynamics of India's engagement with ASEAN; the economic, social, and political importance of their cooperation; and its consequences and highlights opportunities offered by this relationship, for decisions on trade & investments.

With India's 'Looks East' policy post-economic liberalization, this relationship has made great progress. ASEAN has become one of India's largest trading partners in recent years with trade growing from US$ 10.2 billion in 2000 to US$ 76.4 billion in 2011. A majority of India-ASEAN trade is with Indonesia, Malaysia, Thailand, Singapore, and Vietnam. In 2011 Indonesia's share of imports was the highest at 34% of India's total imports from ASEAN, followed by Malaysia (22%), Singapore (20%), and Thailand (13%). Though there has been a large increase in trade flows, there is still potential for enhancing trade cooperation between India and ASEAN. Some of the sectors identified for Trade include Tourism, Agriculture, Health & Pharmaceuticals, and Information Technology.

Singapore and Indonesia are important sources of FDI inflow for India. Singapore's investment value in 2010 was US$ 2.1billion, only after Mauritius. On the other hand, though India is not one of the largest investors in ASEAN nations, FDI outflows to ASEAN has seen a 200% growth in 2010, showing great scope for expansion. Huge opportunities exist for following sectors as elaborated in this white paper: Agriculture, Chemical, Manufacturing Goods and Services. The report also highlights other forms of engagement including physical and institutional "Connectivity". With the on-going restructuring of economic activities, physical connectivity is essential for the economic and financial integration of India and ASEAN. People-to-people connectivity via media and other forms of communication can help community groups, academic institutions, and arts and cultural institutions. Cooperation in the areas of physical, digital, financial& media "connectivity" throws open, huge opportunities for businesses in India & ASEAN as elaborated herein.




INDIA-ASEAN: Forging Partnership for Economic Integration**

Abstract: FICCI - Frost & Sullivan report on “Access to Medicines & Global Outreach” was released during “India Pharma Summit 2012”.

It suggests that with the high costs of healthcare, it is imperative to have financial protection in form of insurance, which is the way forward to ensure accessibility of healthcare

services and medicines in a Public-Private Partnership (PPP) model.

Also, as developed countries have taken keen interest in generic medicines due to increasing healthcare expenditure, it is important to create policies for generic medicines for an early market access and global outreach.



Knowledge Paper: Developing Indian Capital Markets - The Way Forward*

FICCI-Entertainment Lawbook*

Abstract: The Knowledge paper is a compendium of papers by members of FICCI’s Capital Markets Committee. The papers aim to analyse and suggest solutions for key issues pertaining to the primary and secondary markets, the challenges for insurance companies, asset management companies and private equity companies as investors, corporate finance and corporate governance matters and

measures to enhance retail participation . FICCI’s endeavour is to build on this further and develop a concrete road map for the sector’s progress.

The Knowledge Paper comprises important papers including:

• Theme Paper –‘Developing Indian Capital Markets- the Way Forward’

• Current Status of Primary Market

• Delisting Regulations

• Investors’ Perspective

• Potential of Indian Capital Market: The Road Ahead

• Volatility – The New Investment Paradigm

• Capital Market – Need for active retail participation

• Pricing of preferential placements to institutional investors

• India and the Changing Dynamics in Global Business Financing

• Time to complete Unfinished Reform of Takeover Law

• Corporate Bond markets-Overview/Issues/Way forward

• Financial Sector Reforms: The Need for Changes

This report was prepared to give a brief description of the challenges and opportunities in India’s urban infrastructure sector to foreign companies intending to invest in India. It outlines the urbanisation trend, challenges and issues faced by urban India, Jawaharlal Nehru National Urban Renewal Mission (JNNURM), projects eligible for JNNURM funding and urban infrastructure investment requirement sector wise for 2012-2031. It also projects the humungous investment opportunities for private sector in sectors like water supply, sewerage, solid waste management, urban

transport, storm water drains, affordable and low cost housing, technology and governance and R&D in urban infrastructure. It outlines the significance of building inclusive and sustainable Indian cities for future generations and briefly states the opportunities for private sector in India’s biggest urban development project - the Delhi-Mumbai Industrial Corridor (DMIC) project.

The entertainment Law book jointly published by FICCI and Amarchand Mangaldas, a leading law firm of India delves deeply into the regulatory aspect of the entertainment industry. This comprehensive report, a must for all practitioners in this field covers the areas of Broadcast Regulation, Venture Capital and Film Finance, Co-production Treaties and Agreement, Digital Rights Management and

Delineation of Film Rights Copyright and many more Topics

• Anti Camcorder Piracy Laws in India• Trade Secrets and Confidential Information• Restriction on Online Freedom of Speech- Where Do We Draw the Line?• Interconnection – Issues with Respect to Carriage and Placement• Digitisation of Cable Network• The CCI and the Box Office• Resident evils of Indirect Tax- 2013-05-08• Censorship of Films




Report on “Urban Development in India – Challenges and Opportunities”

FICCI-Entertainment Lawbook

Industrial Relations & Contract Labour in India*

Water Use and Efficiency in Thermal Power Plants*

Abstract: Contract labour is a growing form of employment and is prevalent across all the sectors. Though, there is no precise estimate on the number of contract labourers employed in India but they constitute a substantial segment of the workforce. Many a times, they are considered as the most exploited segment of workers, therefore, opinion vary on their employment. Though, Trade Unions are demanding complete abolition of contract labour system, industry needs

it to respond to changing market scenario. Due to Government’s policy of abolition of Contract Labour from one operation to the other, industry is finding it difficult to engage extra hands to discharge short-term contract including export commitments; as a result, employment generation is also suffering. Industry at the same time supports payment of fair wages and coverage of contract labour under various social security programmes.The All India Organisation of Employers (AIOE), an allied body of FICCI, has come up with an approach paper on the status of industrial relations and contract labour in India and has put forward the following recommendations to address the contract labour issue.• Creating Central and State Contract Labour Boards • Contractors be treated as a separate establishment• A single point collection of social security contributions from the industry

and mechanism of full compliance of all statutory requirements• Issuing ‘smart card’ to each contract labour, indicating his skill and social

security membership• Payment of additional 4.81% contribution as gratuity to be paid by

industry in addition to EPF and ESI contributions. • Skills level be considered during wage fixation.• Payment of 20 per cent above the minimum wages

The Planning Commission FICCI-E Y Report 2012 “Higher Education in India: Twelfth Five Year Plan (2012-17) and Beyond” has looked at how the quality of higher education can be enhanced by focusing on some key levers such as merit-based student financing, international alignment, enablement of an advanced research environment, high-quality faculty, improved technology, and partnerships with academia, the industry and the Government. The report also

showcases several examples to demonstrate how these levers have been innovatively used to boost the quality of teaching and learning, and their outcomes in those institutions.

Abstract: The thermal power sector accounts for the highest water use amongst all industrial sectors. Rising power demand will mean greater generation; this in turn would lead to high water consumption. The report Water Use and Efficiency in Thermal Power Plants highlights some of the best practices adopted by the industry in minimizing freshwater intake. The case studies included in the publication demonstrate the efforts of Indian power companies who have undertaken large scale measures on water conservation through

rainwater harvesting and reduced their fresh water intake through desalination and wastewater treatment and reuse.

The government has played a transformational role in stepping up investments in agriculture by implementing various flagship programmes, reforms etc. On the other hand Private sector is also playing a significant role in improving productivity & farming returns though at small scale. A right policy framework is needed to broad base these initiatives into a nationwide systems. Corporate Interventions in Indian

Agriculture is an attempt to showcase the successful case studies which embarks the exemplary work done by Corporates in the Agriculture sector.





Higher Education In India: Twelfth Five Year Plan (2012-2017) And Beyond*

Corporate Interventions in Agriculture*