India Economic Summit 2007

Report

India Economic Summit Building Centres of ExcellenceNew Delhi, 2-4 December 2007

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Page 3

Preface

Page 4

Summary: Building Centres of Excellence

Page 8

State and National Competitiveness

Page 10

Inclusive Growth

Page 14

Infrastructure Development

Page 18

Risk Management

Page 22

Building Centres of Excellence in the WorkSpace

Page 24

Acknowledgements

Contents


2 | India Economic Summit



Preface

The theme of the 23rd India Economic Summit,Building Centres of Excellence, acknowledged India’sremarkable achievements in creating highly competitiveand innovative companies. But more importantly, it alsounderscored the challenge of extending that successbeyond traditional industry, urban and academiccentres to rural communities, where 70% of thepopulation still resides. The record 800 leaders frombusiness, government and civil society, representingover 40 countries, were in strong agreement that,without building centres of excellence in new domainsand states, the country’s economic and demographicstrengths could transform quickly into weaknesses in ahighly-competitive global economy.

Tellingly, there was no evidence of complacency settingin as a result of the country’s record GDP growth,strengthening currency and historically high equitymarkets. Indeed, the challenge of spreading highergrowth across more state economies and developingindustries, and into rural areas, was seen as remainingfor a generation or more. Therefore, the mood at thisyear’s Summit was about how to get things done inthese areas, sooner and faster.

Discussions did not focus, as in the recent past, onhow to achieve greater consensus among industry,state and national leaders around key growthchallenges, but were directed instead at adopting andscaling grassroots innovations that are delivering fasterand greater results on the ground.

It was in this spirit of getting things done faster that theIndia Economic Summit programme was designed totap into the collective intellect, on-the-ground experience

and global insight from among its community ofstakeholders. There was perhaps no better symbol ofthis spirit than the introduction of the WorkSpace to theIndia Economic Summit, which offered a uniquecollaborative environment for decision-makers to co-design responses to address the big challenges of todayand tomorrow. A series of highly interactive andprofessionally facilitated WorkSpace sessions focused onsuch topics as expanding India’s competitive edge,developing a strategy for climate change, leveraginginnovations from social entrepreneurs and building thenew Indian multinational. We also published theIndia@Risk 2007 report in collaboration with theConfederation of Indian Industry (CII). And, for the thirdconsecutive year, the Schwab Foundation for SocialEntrepreneurship presented the India Social Entrepreneurof the Year Award for 2007 on the occasion of theSummit. We look forward to continuing to build on thesesuccessful initiatives in the coming years.

As you read the key points and data presented in thisreport, we look forward to hearing your thoughts andwelcome your suggestions as we prepare theprogramme for the 24th India Economic Summit,scheduled for 16-18 November 2008. The challengesfaced by India, and the world for that matter, are morecomplex, interrelated and intractable than ever before.With over two decades of commitment to addressingthese challenges, we hope that the India EconomicSummit can continue to serve you as an importantplatform for collaborative thinking and creative solutions.

W. Lee HowellSenior DirectorHead of Asia and Global Agenda



While there was confidence among the participants atthe 23rd India Economic Summit, there was nocomplacency. India’s Finance Minister PalaniappanChidambaram, for example, was candid in hisassessment of the challenges ahead. Despite all theprogress India has made in recent years, particularlyas a result of substantial investment and spendinggrowth, “my worry is whether we are getting bang forthe buck,” he said. “While outlays have increasedmanyfold from 2003-2004 to 2008, are these outlaysresulting in outcomes in the field?”

That was the main question on participants’ minds: IsIndia getting the results it needs now that it isachieving 8-9% growth a year and foreign investmenthas risen sharply? It was not enough to recognizeproblems; participants focused on finding solutions tothe root causes of India’s competitiveness deficiencies.Minister Chidambaram, for his part, pinpointed thelack of sufficient restructuring in the financial sector asan obvious failing. “The financial sector is the heart ofthe economy and we haven’t been able to pushthrough reforms; that’s a disappointment.”

At the end of the Summit, participants agreed on theareas in which action will have the greatest impact.The agenda of priorities for the coming year includesskills development, improving governance, upgradingeducation, building public-private partnerships (PPPs)in infrastructure, and addressing environmentaldegradation and water scarcity. All are enormoustasks, but perhaps the most challenging will be thedevelopment of India’s enormous human resourcesthrough skills training and education. In many of thesessions, time after time, participants stressed that itis critical for India to take full advantage of itsdemographic advantages by providing the schoolingand instruction necessary to raise the skill levels of itsexpanding workforce and to create the millions of jobsnecessary to allow them to be productive andcontribute to inclusive economic growth.

India will be able to build the many centres ofexcellence it needs to sustain high growth with equityover the long term only if it can educate and train itspeople to be productive at all levels of society and inboth the rural and urban areas. “What we now needto do is roll up our sleeves and deliver on the

Summary: Building Centres of Excellence

As long as advanced and developedeconomies have an edge overdeveloping countries in knowledge,financial and material resources, I do not think we should rush to theconclusion that power has shifted.

Palaniappan Chidambaram, Minister of Finance of India

““

The greatest challenge facing India isto build an effective, efficient, scaleableand sustainable infrastructure for thisfast-emerging economy.

Hector de J. Ruiz, Chairman of the Board and Chief ExecutiveOfficer, AMD (Advanced Micro Devices), USA; Co-Chair of the IndiaEconomic Summit

“ “



expectations for India that exist around the world,”stated Anand G. Mahindra, Vice-Chairman andManaging Director, Mahindra & Mahindra, India, andCo-Chair of the India Economic Summit. He addedthat the country needs to develop the competenciesthat will deliver on the promise of India.

The India Economic Summit, convened in partnershipwith the Confederation of Indian Industry (CII), wasorganized under four sub-themes: State and NationalCompetitiveness, Inclusive Growth, InfrastructureDevelopment and Risk Management. In addition, forthe first time at the India meeting, four WorkSpacesessions were held on the following topics: InnovativeModels: Expanding India’s Competitive Advantage,Getting Ahead of the Climate Change Curve, ExcellenceDespite the Odds: The Social Entrepreneur in Indiaand Unlocking the DNA of an Indian Multinational.


India has become one of the most successfuleconomies in the world in attracting the attention ofglobal business strategists and investors. But toimprove its competitiveness in the long term, it willhave to address its economic weaknesses. The mostpressing among them is the need to increase skillstraining to better prepare its young population to enterthe workforce.

Poor infrastructure, differences in regulatory and policyregimes across states, the absence of a singlenational market, deficiencies in the manufacturingsector, bureaucratic red tape and corruption areamong the key obstacles to improving India’s globalcompetitiveness.

• A major priority is the skills deficit. While labourproductivity has improved, India does not have theskill levels to sustain 9% growth.

• Training young people for vocational work is criticalif India is to take full advantage of the demographicdividend it can gain from its fast-growingworkforce.

• Government-controlled education and vocationalschemes may not be sufficient to address theproblem. The private sector must be involved tocreate jobs for new entrants.

• Investors should be encouraged or even requiredto set up training institutes in their respectivesectors.

A key to future growth is the enormousdomestic market and the consumption-ledeconomy, which has powered India’s growthand provided a degree of resilience andprotection from global ebbs and flows.

Orit Gadiesh, Chairman, Bain & Company, USA; Member of theFoundation Board of the World Economic Forum; Co-Chair of the IndiaEconomic Summit

“ “

India has always been outside theepicentre of events and yet we get drawnin by the sheer gravitational pull of ourgeography, resources and potential.

Anand G. Mahindra, Vice-Chairman and Managing Director,Mahindra & Mahindra, India; Co-Chair of the India Economic Summit

“ “



Inclusive Growth

India faces a major challenge in dealing with its urbanpoor and the even larger numbers of people who livein poverty in rural areas. As India aims for growth withequity, it may be difficult to improve conditions in thecountryside without making the situation worse in thecities.

• About a quarter of Indians live below the povertyline, while almost 70% of the population is in thecountryside.

• The rising discontent among the poor has led to apolitical backlash, including violent protests andinsurgency. The growth of regional parties is, inpart, a result of the need for the disadvantaged tohave their voices heard.

• To address the concerns of the poor anddisenfranchised, the government and nationalparties will need to embrace local interests. A keypriority must be to increase spending on ruralinfrastructure.

• The private sector has a role to play. Banks, forexample, can promote microfinance and providerural Indians with education on the basics offinance.

• The government must raise incomes in thecountryside without accelerating the rush to thecities. Tools to achieve this include technology toturn rural India into a service centre for urban areasand regulations and incentives to encouragecompanies to “ruralize”.


One of the biggest challenges India faces is toaddress its lack of adequate and well-maintainedinfrastructure. Infrastructure investment must rise toaround 9% if India is to sustain 10% growth. Thechallenge: to forge the public-private partnershipsnecessary to marshal the resources and expertiseneeded to dramatically improve the situation.

You need to take the untapped humanresources and bring them to fruition;otherwise, India will have a differentvalue proposition.

Ben J. Verwaayen, Chief Executive Officer, BT, United Kingdom;Co-Chair of the India Economic Summit

“ “There are great opportunities in India,but don’t take anything for granted.Keep investing in education andaddress infrastructure.

Edward J. Zander, Chairman and Chief Executive Officer,Motorola, USA; Co-Chair of the India Economic Summit

“ “



• The public sector has insufficient resources totackle the infrastructure deficit, while the privatesector has funding and talent issues of its own.

• The successful completion of the National HighwaysAuthority’s Golden Quadrilateral project is an exampleof a public-private revenue sharing agreement.

• Even if clearly defined projects existed, pricing andrisk management, especially between public andprivate entities, need more sophistication andshould move away from the traditional “cheapestsupplier” mindset.

• Cross-sector government cooperation must beimproved so that an integrated approach may betaken in constructing infrastructure projects suchas airports, which will need roads and transportlinks to allow easy access.

• India does not have sufficient capacity to executemultiple mega-construction projects due to the lackof qualified engineering firms and the paucity oftrained manpower.

Risk Management

In managing the risks that threaten its currentexpansion, India must aim to turn some of the threatsinto opportunities. Although the rest of the worldconsiders India to be an emerging superpower, it is inthe country’s strategic interest to resist complacencyand to avoid hubris.

• Economic success should not be narrowly defined bythe middle class, white-collar ideal. India needs to fillthe burgeoning demand for skilled, blue-collar labour.

• India must address global problems such asHIV/AIDS and global warming.

• Climate change is exacerbating the rapid decline ofIndia’s freshwater supplies. India must focus onbuilding the necessary infrastructure to harnessrainfall and floodwaters for productive use.

• Protectionism, both at home and abroad, isanother looming risk to India’s growth.

• The prospect of a US economic slowdown mayalso have a negative impact, but India may bebetter insulated from a recession in America thanEast Asian economies.

• India could risk raising social tensions if not enoughjobs are created to absorb the increase in theworkforce. A major challenge is to provide youngpeople the skills they need to be productivelyemployed.

Within India, the challenge is how to create 100 million new jobs in the next 15 years.

Mukesh Ambani, Chairman and Managing Director, RelianceIndustries, India; Co-Chair of the India Economic Summit

“ “

Kamal Nath, Minister of

Commerce and Industry

of India



In recent years, India has clearly been one of the mostsuccessful economies in the world in attracting theattention of global business strategists and drawing inforeign investment (see Figure 1). According to officialfigures, FDI in the financial year 2006-2007 totalledUS$ 19.5 billion, up from US$ 7.7 billion the yearbefore. The government expects US$ 30 billion for2007-2008, an ambitious target that is still only abouthalf the inflow to China. The Planning Commissionforecasts that the economy will grow by 8.5% to 9%over the current financial year to March 2008. The goalgoing forward: sustained 9% growth that is inclusive.

To get there will require addressing seriousconstraints. At this and previous India EconomicSummits, participants have identified and debated thewidely recognized challenges confronting India as itseeks to boost its global competitiveness and achieveChina-level growth rates (see Figure 2). These familiarobstacles to raising productivity include poorinfrastructure, differences in regulatory and policy

regimes across states, the absence of a single nationalmarket, the need to develop the manufacturing sector,bureaucratic red tape and corruption. Each pressingproblem requires urgent attention. The divide amongstates, for example, is already leading to dangeroussocial tensions and anti-government protests. Accordingto a recent study by Lehman Brothers, the poorestfive states, where about 40% of the total Indianpopulation lives, account for just a quarter of nationaloutput, while the five richest, with only about 26% ofthe population, produce more than 40% of the output.

At this Summit, a spotlight was trained on one glaringdeficiency that has not received as much attention inprevious meetings: the need to increase vocationaltraining and technical skills in the workforce. India’sachievements in IT and pharmaceuticals, as well as thecadres of top managers who have spread across theworld are testament to the talent that India hasproduced. What India lacks are people with the skills tokeep its economy humming – the masons, carpenters,hotel waiters and armies of workers who are thefoundation of any economy. “Labour productivity has


Labour productivity has been rising but our skill levelshave been abysmal. The skill levels of the labour forceare lower than what we need for 9% growth.

Suman Bery, Director-General, National Council of Applied Economic Research, India

“ “Figure 1: Foreign Investment in India

Source: Reserve Bank of IndiaNote: * Years are fiscal years ending March. 2008 data includes FII flows through 19 Oct 2007, and ADRs/GDRs through July 2007.

Portfolio inflows for the first half of fiscal year 2008 greater than 2006 and 2007 combined

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1996

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2004

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2007

2008

*

Figure 2: India's Competitiveness

Source: World Economic Forum

India shares characteristics of both factor- and innovation-driven economies

Innovation-driven economiesIndia

Factor-driven economies

InnovationInstitutions

Infrastructure

Macroeconomicstability

Health and primaryeducation

Higher educationand training

Goods market efficiency

Labor market efficiency

Technologicalreadiness

Market size

Business sophistication

Financial marketsophistication


“The government needs to let go of its control overthe education system,” said Shiv Nadar, Founder,HCL; Chairman and Chief Strategy Officer, HCLTechnologies, India. Syllabus-driven state schools donot give students the skills they need to compete.“We need skills development as a major initiative,”Sunil Bharti Mittal, Chairman and Group ChiefExecutive Officer of Bharti Enterprises and Presidentof the Confederation of Indian Industry (CII), agreed.

Colette Mathur, Senior Adviser at the World EconomicForum, offered a practical proposal with respect to thedevelopment of special economic zones: requireinvestors to set up a training institute for workers intheir sector. Ambika Soni, Minister of Tourism andCulture of India, supported the idea. “Young peoplewant to learn and become skilled,” she said, notingthe need for training facilities in such fields as tourism,hotel management and healthcare. There areopportunities for investors, the minister concluded.

been rising but our skill levels have been abysmal,” saidSuman Bery, Director-General, National Council ofApplied Economic Research, India. “The skill levels of thelabour force are lower than what we need for 9% growth.”

Much has been made of India’s youthful demographicswhere over half the population is under the age of 25(see Figure 3). According to Goldman Sachs, thenumber of people of working age (15-60 years old) willpeak at about 64% around 2020. This can be asignificant global competitive advantage, but only if thejobs are created to accommodate the bulge in theworkforce. It all starts with education, Indian FinanceMinister Palaniappan Chidambaram told participants.“India can reap the benefit of its demographicdividend and avoid it turning into a demographicliability by ensuring that every child can access qualityeducation and stay in school for at least 10 years.”

It also requires a concerted effort to provide skillstraining. The government acknowledges this criticaltask. “For every one of our people to benefit from newemployment opportunities being created across theeconomy, we must ensure that every Indian iseducated and skilled,” said Prime Minister ManmohanSingh in his Independence Day message to the nationin August this year. Singh announced the launch of aVocational Education Mission to open 1,600 industrialtraining institutes and polytechnics, 10,000 vocationalschools and 50,000 skills development centres. Everyyear, he said, over 10 million students will receivevocational training, four times the number today. “Wewill seek the active help of the private sector in thisinitiative so that they not only assist in the training, butalso lend a hand in providing employment opportunities.”


Young people want to learn andbecome skilled.

Ambika Soni, Minister of Tourism and Culture of India

“ “

Figure 3: India Younger Than Many Asian Peers

Source: Asian Demographics Ltd

Over half the population is younger than 25 years old

100%

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80

70

60

50

40

30

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Per

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0-1415-2425-3940-5960+ years old

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We need skills development as a major initiative.

Sunil Bharti Mittal, Chairman and Group Chief ExecutiveOfficer, Bharti Enterprises; President, Confederation of IndianIndustry (CII), India

“ “



There are two types of poor in India: the millionspacked into India’s growing urban slums and the evengreater number eking out life in its rural heartland. Theconundrum the country faces is that improving thesituation in the countryside will likely make mattersworse in the city.

“What do migrants want?” asked Anand G. Mahindra,Vice-Chairman and Managing Director, Mahindra &Mahindra, India; Co-Chair of the India EconomicSummit. “They want diversity of income, sanitation,drinking water, power, roads. But even when they getthose, they will still want the life they see on theirtelevisions. Human beings like to live in cities; theyhave done so for thousands of years.”

It is no secret that India needs to make its tremendouseconomic growth more equitable, to spread it morefairly among society – not just wealth, butinfrastructure and educational opportunities. Roughlyone quarter of Indians live below the poverty line, andalmost 70% of Indians live in rural areas, wheredesperate farmers too often find solace in suicide.

The rising discontent of these have-nots has alreadyproduced a political backlash. A radical Maoistinsurrection, Naxalism, has spread through somestates while, across the country, regional politicalparties are growing in strength, upsetting thedominance of national parties and forcing them tocobble together coalition governments – like the onenow in power in New Delhi (see Figure 1).

While these new political parties offer an importantvoice for those disenfranchised or displaced byeconomic development, they often base their appealon caste and the personality of their leader, makingthem divisive and raising concerns about corruption. “They can muster big crowds but they are perceivedto be not very honourable,” said Arun Jaitley, Memberof Parliament and General Secretary, Bharatiya JanataParty, India.

Inclusive Growth

If we can take opportunities to ruralIndia, there’s no reason why ruralIndia would wish to come likelemmings to urban India.

Mani Shankar Aiyar, Minister of Panchayati Raj and YouthAffairs and Sports of India

“

Figure 1: India's Parliamentary Parties

Source: Election Commission of India

Parliamentary power now spread among more political parties

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The proliferation of coalition governments that rely onconsensus decision-making could also have adiminished ability to formulate and implement effectivepolicies. “Coalition government has its owncompulsions and its own limitations,” said VilasraoDeshmukh, Chief Minister of Maharashtra, India. “Itcan delay decisions.”

To achieve a broader mandate and regain politicalmomentum, national parties need to boost regionalchapters to embrace local interests; likewise, regionalparties need to develop more robust national agendas.

Achieving inclusive economic growth is a priority forIndia’s current government. Its latest budget includesa 31% increase in spending on rural infrastructure –15% of public infrastructure funds are expected to beallocated to rural irrigation (see Figure 2) – and

broadens access by farmers to credit. In doing so, it ishelping to plug a gaping hole in funding for connectingrural Indians to the mainstream economy.

The private sector is also making great strides throughmicrofinance, providing rural development capital whilefreeing many rural people from the grip ofmoneylenders. Instead, microfinance offers the ruralpoor a way to leverage their own industry and thrift bypopularizing not only debt but also savings accounts.“The bank account has become a status symbol inthe villages,” said M. R. Rao, Chief Operating Officer,SKS Microfinance, India.

To realize the potential microfinance has tapped,however, India needs greater deregulation. Existing rules,for example, prevent bankers from tying up withtelecommunications companies to use establishedcellular customer networks to distribute financial services.

Ben J. Verwaayen, Chief Executive Officer, BT, United Kingdom; Co-Chair of the India Economic Summit;

Mani Shankar Aiyar, Minister of Panchayati Raj and Youth Affairs and Sports of India; Anand G. Mahindra, Vice-Chairman and Managing Director,

Mahindra & Mahindra, India; Co-Chair of the India Economic Summit and Mohamed A. Alabbar, Chairman, Emaar Properties, United Arab Emirates

listen to Nik Gowing, Main Presenter, BBC World, United Kingdom

What do migrants want? They wantdiversity of income, sanitation, drinkingwater, power, roads. But even whenthey get those, they will still want thelife they see on their televisions. Humanbeings like to live in cities; they havedone so for thousands of years.

Anand G. Mahindra, Vice-Chairman and Managing Director,Mahindra & Mahindra, India; Co-Chair of the India EconomicSummit

““

Figure 2: Rural Infrastructure Investment

Source: Government Planning Commission

Rural irrigation expected to receive 15% of public infrastructure funds

Water supply/SanitationElectricity

Rural roads

Telecoms

Irrigation

1,500,000

1,250,000

1,000,000

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Bankers concede, however, that their industry is alsoguilty of holding back. Microfinance typically chargesrelatively high interest rates, yet default rates amongmicro-borrowers remain near zero, indicating whatbankers say is excessive caution on the part of micro-lenders. Part of that caution, they say, stems from thefact that there is no credit bureau to keep track ofrural borrowers, nor a reliable way – such as drivinglicenses or birth certificates – to even identify them.Some have called for the government to issue nationalvoter registration cards.

Bankers also have an important role to play in fillingthe rural education gap, by teaching rural Indians thebasics of finance. To be sure, education often servesas a politically correct panacea in debates aboutpoverty relief, but this year’s Summit broke from theplatitudes by outlining practical areas where educationcan have an immediate impact. Improved vocationaltraining was singled out as a critical necessity for Indiathat would address its growing shortage of skilledtrades workers while recognizing that a higher degreemay not be a realistic aspiration for the bulk of thecountry’s youth. Vocational training is an area,moreover, where companies can get more immediatereturns on their investment, either by conducting theirown training, financing vocational programmes orhelping to develop curricula.

The good news for India is that its economy is largelydriven by domestic demand as opposed to exports.The rural population, therefore, represents a criticalsource of new labour for India’s services-led growth.

But solving the riddle of how to raise income levels inthe countryside without accelerating the rush to thecities requires new thinking on what urbanization means.In short, convincing rural Indians not to move to bigcities will require moving the city closer to them. “If wecan take opportunities to rural India, there’s no reasonwhy rural India would wish to come like lemmings tourban India,” said Mani Shankar Aiyar, Minister ofPanchayati Raj and Youth Affairs and Sports of India.

The war for talent is such that wehave hundreds of millions of peoplewho cannot monetize their skills todaybecause we haven’t connected them.It’s in everyone’s interest that weunleash that capability and that talent.

Ben J. Verwaayen, Chief Executive Officer, BT, UnitedKingdom; Co-Chair of the India Economic Summit

““

Palaniappan Chidambaram, Minister of Finance of India and Sunil Bharti Mittal, Chairman and Group Chief Executive Officer, Bharti Enterprises;

President, Confederation of Indian Industry (CII), India



Transformation – Sustainable City Development and InclusiveUrban Growth

At a session on the new SlimCity initiative of the WorldEconomic Forum, business leaders concluded that far-reaching change is imperative in order for India’s cities toachieve sustainable development and provide inclusivegrowth for its citizens.

Accountability, coordination and resources were identifiedas the three core areas in need of transformation.Participants underlined the success of the Delhi Metrodevelopment as a widely recognized example of theoverwhelming advantages of clear accountability in citygovernance and transparent, coordinated public sectorproject management. Participants highlighted the factthat India possesses world-class resources, but itseconomic and inclusive growth can only continue ifleaders from the public and private sectors rise to thechallenge of putting these resources in the hands ofthose who need them.

The World Economic Forum’s SlimCity initiative is a globalpartnership of leading city mayors and private sectorboard executives, supported by the World Bank, theInternational Energy Agency, UH-Habitat and ICLEI. Theinitiative provides a risk-free, dynamic, multistakeholderenvironment within which cities and the private sectorcan pursue the development of energy and resourceefficiency in cities.

Ajit Gulabchand,

Chairman and Managing

Director, Hindustan

Construction Company,

India, speaking at the

SlimCity private session

Industries that rely on rural inputs – food processing,biofuel production and handicrafts – should movecloser to their production centres. Doing so willencourage the creation of new urban centres, turningvillages into towns, and towns into small cities.Technology can also be used to turn rural India into aservice centre for urban India in the same way thatIndia has become a service centre for the world. “Thewar for talent is such that we have hundreds ofmillions of people who cannot monetize their skillstoday because we haven’t connected them,” said BenJ. Verwaayen, Chief Executive Officer, BT, UnitedKingdom; Co-Chair of the India Economic Summit.“It’s in everyone’s interest that we unleash thatcapability and that talent.”

Ultimately, it may take a more concerted push bygovernment to make this shift out of the citieshappen. Regulations and incentives may be needed toencourage companies to “ruralize”. But it is clear thatIndia can no longer afford to let investment andcommerce remain confined within the city limits.“Rural and urban are not separate; both areconnected, said Aiyar. “Until we see that, India willbecome prosperous and Indians will remain poor.”




“The greatest challenge facing India is to build aneffective, efficient, scalable and sustainableinfrastructure,” noted Hector de J. Ruiz, Chairman ofthe Board and Chief Executive Officer, AMD(Advanced Micro Devices), USA; Co-Chair of the IndiaEconomic Summit. As India’s economy continues itshigh growth trajectory, its lack of infrastructurebecomes an ever-increasing concern.

To sustain and realize India’s growth potential, thegovernment of India has tabled ambitious plans toboost infrastructure investment from historic levels of3-4% of GDP to around 9% by 2012. The PlanningCommission’s current infrastructure investmentestimate within the 11th Five-Year Plan period standsat US$ 490 billion. These plans do not include privatecapital expenditure investments, which will lead to aneven greater demand for infrastructure-relatedservices and products. But many business peopleharbour doubts that these plans will come to fruitionbecause of resource gaps faced by the public andprivate sectors.

But the cost to the economy of not dramaticallyimproving infrastructure will be huge. Even thoughIndia’s US$ 1 trillion economy is growing at 8-10% per

annum, most analysts agree its lack of infrastructurecosts the economy between 1.5% and 2% of GDPper annum. This equates to between US$ 95 billionand US$ 134 billion lost in cumulative GDP by 2012.

The Indian government recognizes that it faces asignificant task. On one hand, public sector borrowingrestrictions and the lack of construction resourcesmean it has to approach the private sector to helpfund and implement their plans. On the other hand,the private sector faces significant resource and talentissues of its own to cope with extra demand forconstruction. The current five-year plan forinfrastructure sets aside an average of 30% (US$ 145billion over five years) in PPPs and purely privateinfrastructure-related projects. Telecommunications,roads, ports and airports are the main targets for thehigher share of private funding, reflecting recentsignificant steps taken by the government towardsembracing the private sector (see Figure 1).

At the end of the day it’s easier to build a road than it is to build a democracy.

Nandan M. Nilekani, Executive Co-Chairman, InfosysTechnologies, India; Member of the Foundation Board of theWorld Economic Forum

“ “

Figure 1: Infrastructure Investment, by Sector

Source: Government Planning Commission

Private sector contribution expected to be 0% of irrigation funds, but nearly three-quarters of ports spending

100%

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50

25

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The National Highways Authority of India has led theway by successfully completing the GoldenQuadrilateral project through revenue sharingarrangements with private contractors, introducingmodel concession agreements as well as acquiring landin a practical manner. The government did not interferewhen the telecommunications private sector innovatedby introducing leapfrogging technology to eliminatethe need to lay an expensive network of land cables.

Further, the government has “pre-approved” 11international and domestic consultancies to advise oninfrastructure related projects to make the biddingprocess simultaneously quicker and more transparent.Additionally, it has authorized a viability-gap financingmechanism for projects that do not meet purelyreturn-oriented targets, and recently set aside a US$100 million fund to finance the exploration and designof designated projects.

However, there are many areas that still lack clarityand need attention. First among these is the lack of“bankable” projects. General project fundingrequirements are easy to determine, but private sectorplayers complain there are no clearly articulated projectsdefined in a way that they can readily start executing.

Even if clearly defined projects existed, pricing and riskmanagement, especially between public and privateentities, will need more sophistication and shouldmove away from a traditional “cheapest supplier”mindset. For example, two ultra-megawatt powerfacilities have been negotiated on 40-year fixed pricecontracts. While in the short term this may seem like a

great deal for the government, it has unwittinglyintroduced unsustainable pricing and risk policies thatmay deter future private players from bidding by suchrisk distortion.

Indeed, more broadly, public and private entities needto reflect on their respective abilities to manage andcontrol the variety of development, construction,financial structuring and market risks, and allocatethem appropriately within PPP frameworks. And thesocial consequential risks need addressing too,especially regarding the resettlement and rehabilitationof affected voting populations.

Complicating the picture further, cross-sectorgovernment cooperation is not strong. Silo-leddevelopments, rather than integrated approaches,lead to stunning examples of where nearly-builtstructures, such as Bangalore’s international airport,will have no quality roads leading to or from themwhen they open.

But blame is too easily put on the government.Consumer mindsets are also a problem. Centralgovernment ministers as well as state chiefs are rightlyafraid to place a price on commodities seen asessential to rural area welfare, for fear of a votingbacklash. Rural areas, in particular, expect water to beprovided without cost. Some experts have suggestedintroducing a “water credits” system similar to carboncredits to discover the price of increasingly scarcepotable supplies. But the Planning Commission doesnot envisage much private participation in eitherirrigation or water supply.

Rajat M. Nag, Managing

Director-General, Asian

Development Bank,

Manila



Dispute resolution needs to be significantly streamlined.Complex decision-making jurisdictions that areconstitutionally mandated within national, state and localpower seats add significant cost and time overruns toinfrastructure projects that cross boundaries andencroach on several sovereignties. A properly functioningand responsible arbitration mechanism is generallyabsent with non-binding decisions and cases waylaid incourts or automatically referred to the Supreme Court.

But even if mindsets shift significantly, will there besufficient capacity to execute? First, large engineeringand construction companies with mega-projectmanagement capabilities in India are few in number.The industry lacks not only size but also appropriately-trained manpower. Of the 500,000 total engineeringgraduates, only 5% are civil engineers. And eventhose graduating are lured by higher wages in othernon-infrastructure-related sectors such as call centres orjobs in the Middle East offering much higher salaries.Especially acute is the shortage of talent at theplanning, design and maintenance levels – particularlyat the middle-management stage – which will

inevitably lead to improperly planned projects riskinghigh alteration costs and poor quality execution. Thus,the commonly held perception that India is an abundantoasis of engineering talent is plainly false. As Chaly C.K. Mah, Chief Executive Officer, Asia Pacific, Deloitte,Singapore, noted, “When you talk about skilled labour,there is a massive shortage in India and the core is toensure you have a solid education system.”

Even though the engineering and constructionindustry in India employs over 32 million people, it hasnot until recently been recognized as an industry.However proud India is of its centres of educationexcellence, they only cater to a minute proportion ofthe population. The rest of the “educable” workforce,as N. K. Singh, Deputy Chairman, PlanningCommission, Government of Bihar, India, dubbedthem, are not emerging with the right skills, leavingmany enlightened companies to take the initiative totrain them “on the job” and issue skill certificates.

Government officials and private sector players agreeon one thing, though: comparisons between Chinaand India regarding infrastructure development shouldstop, since the two systems are so unlike one anotherwhen it comes to large-scale planning. Indian officialslike to portray China as a centralized polity that has noproblem or issue with moving large populations to makeway for critical infrastructure projects. Of course, thisview misses the underlying tensions between centreand provinces. But one thing is clear, and put best byNandan M. Nilekani, Executive Co-Chairman, InfosysTechnologies, India; Member of the Foundation Board ofthe World Economic Forum: “At the end of the day, it’seasier to build a road than it is to build a democracy.”

The government regards infrastructureas a critical constraint. It is our viewthat the target we have set for theeconomy which is to accelerate to anaverage of 9% growth cannot beachieved if we fail to make efforts ininfrastructure.

Montek S. Ahluwalia, Deputy Chairman, PlanningCommission, India

““



The current state of the country’s infrastructure and thegovernment’s new proposals to increase expenditure to9% of GDP by 2012 (see chart) formed the basis of aworkshop organized by the World Economic Forumand the Confederation for Indian Industry (CII) ahead ofthe India Economic Summit. The private meetingcomprised a broad array of stakeholder groupsincluding government officials, private sector players,global engineering firms, consultants, financialintermediaries and multilateral organizations, includingthe World Bank.

Building on the findings of the World Economic Forum’sEngineering & Construction: Scenarios to 2020,participants noted that the central government hasmade a lot of progress on changing mindsets byactively involving the private sector and making thebidding process for projects more transparent.Financing for projects in general did not seem to be anissue, but participants called for greater depth inprivate sector bonds to match project tenures.

Private sector participants also called for more clarityon the range of detailed projects envisaged by thegovernment to assist in their planning and more detailregarding the mechanism of public-privatepartnerships. They also highlighted the fact thatdifferent sectors should learn from others in terms ofbest practice. In addition, they commented that, giventhe growing number of options for investmentopportunities globally, India needs to focus on making iteasier for multinational companies to work oninfrastructure projects.

Finally, the group mandated that the Forum and CIIproduce a series of case studies highlightinginfrastructure solutions already being implementedaround the country. This, they said, would help sharebest practices within India and shed light on the Indianinfrastructure situation for global companies.

Infrastructure Spending

Source: Government Planning Commission; Lehman Brothers

Overall infrastructure investment expected to increase from $201 billion in the 10th plan, to $492 billion in the 11th

Anticipated investment (US$, billions)

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Rajiv Lall, Managing Director and Chief Executive Officer, Infrastructure Development Finance Company, India; Montek S. Ahluwalia, Deputy

Chairman, Planning Commission, India; Rajat M. Nag, Managing Director-General, Asian Development Bank, Manila; Ajit Gulabchand, Chairman and

Managing Director, Hindustan Construction Company, India

Meeting India’s Infrastructure Challenge



Risk Management

India’s boom is replete with risk. The World EconomicForum’s India@Risk 2007 report outlined just six of themajor global risks to the country, including the loss offreshwater, economic shocks and oil peaks, theeconomic impact of demographics, globalization vsprotectionism, climate change and infectious diseases.Most people associate risks with jeopardy, but risk isan essential ingredient in success. “Risk is not identicalto threat,” explained Sean M. Cleary, Chairman,Strategic Concepts, South Africa. “Risk lies on thecusp between threat and opportunity. The challengewhen addressing risk is to turn it into an opportunity.”

To do that, it is important not to see India’s problemsas insoluble, nor to take India’s success aspreordained. Indeed, talk of India as a new economicsuperpower may be premature, warned PalaniappanChidambaram, Minister of Finance of India. He addedthat a superpower is a magnet for knowledge, afinancial centre and has access to abundant naturalresources. India has yet to secure these things and somust avoid hubris or chauvinism.

India must not, therefore, let economic success benarrowly defined by the middle class ideal as seen ontelevision. Between peasantry and prosperity, India

needs to fill the burgeoning demand for skilled labour.“The concept of dignity of labour has to beestablished to a much greater degree than we have,”said Anjali Raina, Country Training Director, Citibank,India. And as large and complex as it is, India cannotafford to turn its back on the world’s problems – theyhave historically had a way of pulling India in.

HIV/AIDS is an example of an imported problem thatwill require Indian solutions to solve. With at least 5.7million HIV-positive people, India last year overtookSouth Africa as the country with the largest number ofpeople infected with the virus that causes AIDS.

Global warming, meanwhile, is exacerbating the rapiddecline in India’s freshwater supplies (see Figure 1). By2025, India’s per capita supply of renewable water isprojected to drop to only a quarter of what it was in1975. India, however, receives more rainfall than it canmanage, which often results in flooding. Harnessingthose floodwaters will require that India build dams

The real economy, includingmanufacturing, is what is important andthe appreciation of the rupee is makingthat economy suffer.

Rahul Bajaj, Chairman, Bajaj Auto; Member of Parliament, India

“ “

Figure 1: Access to Renewable Water Dropping

Source: United Nations Food and Agricultural Organisation

2025 per capita water supply in India is expected to be less than half the supply in 1975

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and reservoirs, as China has built infrastructure suchas the Three Gorges dam. “India must summon thatkind of determination and will to execute the projects,”said Chidambaram.

Many worry that the government has adopted a short-sighted approach to the environment, however,rejecting calls to cap emissions growth despiteabundant evidence that India is choking on itspollution. While critics agree with India that the Westmust lead the world in cutting emissions, many sayIndia shouldn’t use development as an excuse forrepeating the West’s mistakes. Instead, said StuartPopham, Senior Partner, Clifford Chance, UnitedKingdom, India has an opportunity to leapfrog ahead,“and formulate regulations that might be the templatefor the rest of the world”.

Protectionism, both at home and abroad, is anotherlooming risk to India’s growth. India has its ownopponents to free trade and capital flows, and manyIndians who are afraid of displacement want to blockthe creation of special economic zones that stand toboost investment and create centres of job growthoutside major cities. In the United States, a growingnumber of people see the rise of India and China as athreat to their own prosperity.

India is fortunate in that, relative to export-dependentEast Asia, it is somewhat insulated from the marketturmoil emanating from the troubled US housingmarket. India relies largely on coal for its energy, andits economic growth is driven primarily by domesticdemand rather than exports.

Nonetheless, India relies on imports for as much as80% of its fuel needs and is trying to substitute coalwith cleaner, but imported, natural gas. Rising oilprices have repercussions for India, and India hasroom to play a more assertive diplomatic role whereits energy supply is concerned.

The prospect of a US economic slowdown next year,while of greater concern to East Asia’s exporters, alsohas a potentially negative impact for India. Already thisyear, the US dollar has fallen dramatically against therupee, making it harder for Indian exporters tocompete overseas and luring speculative investmentsinto India, which is in turn pushing the rupee up even

Along with national security, the threepillars of security – human, economicand physical – need to be raised tobring the economy to a position wherethe challenges can be met. The riskswere identified because of theirinterconnectedness, which magnifiestheir impact.

Shamsher S. Mehta, Director-General, Confederation of IndianIndustry (CII), India

““



faster (see Figure 2). Normally a rising currency helpskeep a lid on inflation but, in India, the flood of cashinto the country and rapid growth are combining toaccelerate price increases.

Some Indian industrialists suggested capital controlsto help stem the inflow of portfolio investments.“Something has to be put there – not for money goingout but for money coming in,” said Rahul Bajaj,Chairman, Bajaj Auto; Member of Parliament, India.

Despite the experiences of Malaysia and Chile,economists warn that capital controls would be amistake. The strong rupee lowers the cost of importingmuch-needed capital goods, which can in turn be usedto boost productivity. India’s capital markets need tobe liberalized, they say, so they grow and become lessvolatile. But until that happens, Indian companies willhave to get used to bigger swings in the rupee’s value.

Business leaders sat down at the India Economic Summitto discuss the climate change challenge. The high numberand level of participants during the programme’s twosessions on the topic showed that there is rising businessconcern in India about the issue.

Participants were given expert overviews of the scale andurgency of the climate change problem facing thesubcontinent. As well as the adaptation challenge – which,if not met, has huge potential to stunt future national growth– there are predictions of a seven-fold increase in energyconsumption in India by 2030, 60-70% of which will beprovided by coal. India will soon become a major emitter ofgreenhouse gases and will face increasing internationalpressure to reduce emissions levels.

Urgent action is required to avoid the tipping point thatscientists say will be reached if fast-growing countries emitas rapidly as others have in the past. Business participantsstated that the case for action in India is simple andundeniable, and they are willing to step forward ifgovernment hesitates. Participants expressed their viewthat, irrespective of the United Nations Climate ChangeConference 2007 outcome, the Indian business communityshould show leadership and start taking the first stepsforward.

Business Leaders in India Take onthe Climate Change Challenge

India@Risk: Six Global Challenges Ahead session: Robert D. Blackwill, President, Barbour Griffith and Rogers International, USA; Chaly C. K. Mah,

Chief Executive Officer, Asia Pacific, Deloitte, Singapore; Shekhar Dutt, Deputy National Security Adviser, National Security Council (NSC), India;

Madeleine K. Albright, President, The Albright Group, USA; Stuart Popham, Senior Partner, Clifford Chance, United Kingdom and Shamsher S. Mehta,

Director-General, Confederation of Indian Industry (CII), India

Figure 2: Value of the Rupee

Source: Reuters

The rupee's relative value changing as the dollar-euro rate evolves

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A longer-term risk to Indian economic growth is itsrising population of new job entrants. With half of thepopulation under 25, the Indian working-agepopulation is expected to rise by more than 10% to762 million by 2012. The added savings andconsumption will propel the Indian economy evenfaster.

With most of these young people counted among therural poor, however, the worry is that limited access toeducation has left most of them lacking marketableskills. That could leave India short of skilled workers,but teeming with restive unemployed.

The government aims to broaden access to primaryand secondary education, and increase collegeenrolment. But economists and executives stress thatit is the quality, not just quantity, of education thatcounts. They feel that too many colleges areproducing under-qualified graduates. At the sametime, many college graduates are often over-qualifiedfor service sector jobs such as plumbing and electricalwork.

Vocational training is an area into which companiescan invest directly and reap rewards in a relativelyshort time. If India can manage to train more of itspoor, rural young people to take up skilled jobs, it willbe able to fill not only its own need for labour, but findmore jobs to meet the rising shortage of skilledworkers in nations with ageing populations overseas.

India is at an inflection point – while the prospect ofsustaining 8-10% growth is achievable, it is not a given,according to a report released by the World EconomicForum's Global Risk Network and the Confederation ofIndian Industry (CII). Decision-makers cannot assume thattomorrow’s growth story in India will read like today’s. Theeconomic fundamentals are in place, but political dynamicsand the scope of structural reforms are more likely to shapethe next chapter, according to the India@Risk 2007 reportreleased at the India Economic Summit.

In the short term, three economic threats loom large: arising rupee, an oil price shock and a collapse of assetprices (especially property or shares) triggered by a globalre-appreciation of risk. In the medium and long term, riskmitigation should focus on building increased resilience viacontinued investment in basic infrastructure and education,in order to reap the demographic dividend of a young,aspirational and growing populace.

With more than 71 million new jobs required over the nextfive years, inclusive growth is an imperative for India.

Another key priority highlighted in the report is water – percapita supply in 2025 is expected to be less than half ofthat in 1975 (see chart). There is no doubt that the currentwater situation in India will get much worse unless differentapproaches are taken. India has enough precipitation butnot enough storage in terms of dams and reservoirs; itneeds improved groundwater recharge and should exploreopportunities for further public-private partnerships.

Other risks that could derail India’s future growth prospectsinclude climate change, infectious diseases and thepotential backlash against globalization (i.e. risingprotectionism). “Some of these risks are beyond India’scontrol, including exogenous economic crises and an oilprice shock,” said Palaniappan Chidambaram, Minister ofFinance of India, adding, “Other risks are endogenous andcan be overcome – for example, risks associated withdemographics and the lack of freshwater.”

The report concludes that for India – a countrycharacterized by huge opportunities and ever-increasingregional and global interdependence – the imperative is forcollective action to mitigate these shared risks. For the fullreport go to: http://www.weforum.org/pdf/grn/indiarisk.pdf

India@Risk

Access to Renewable Water Dropping

Source: United Nations Food and Agricultural Organisation

2025 per capita water supply in India is expected to be less than half the supply in 1975

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Building Centres of Excellence in

the WorkSpace

Innovative Models: Expanding India’s Competitive Advantage

Participants looked at various innovative models thatare transforming India into a centre of excellence.These models were explored across sectors,industries and business domains to determine howthey could be replicated. Participants split into groupsfrom various industries, where they co-designed ideal3-D models that would enable innovation in any context.

The groups came away with insight into how toencourage an environment conducive to innovativethinking. All agreed that innovative ideas andprocesses can often be applied from one industry toanother and that industries can learn from oneanother. The concept of innovation may by necessitymean that organizations need to develop newbusiness models to remain relevant. This is particularlyimportant for top-down institutions. Innovation is notonly about inspiration; it goes beyond new productsand services and should be viewed as a strategicissue. Trying something new may mean makingmistakes, but should also mean being willing to investin making mistakes to get to something really good.Many participants concluded that innovation could beviewed as an excursion: taking a few steps away fromtheir comfort zone and then returning full circle to theirissue or challenge with new insights and solutions.

Getting Ahead of the Climate Change Curve

Experts and business leaders in this session looked atclimate change from a sector perspective to identifycross-sector risks, explore leading practices and buildsystemic solutions to this very relevant global issue.Participants divided into groups to look at risks andidentify leading practices to start defining concreteactions they could take immediately. All concurred thatIndia has a large role to play in rolling back the effectsof climate change.

Generally, the participants identified innovation as akey to tackling the effects of climate change, asdrastic solutions are needed to ensure a sustainablefuture. Participants noted that knowing the carbonfootprint of a business’s supply chain is an importantstep in learning where to make changes to reduce thefootprint to zero. Energy efficiency was also flagged asan important priority for businesses to make, includinginvesting in green technologies and products.Participants further highlighted the significance ofadvocating national and international frameworks suchas market mechanisms to price carbon; a “greener”approach to urban and rural design; and aconsumption tax, as opposed to an income tax.

Participants at the India Economic Summit had the opportunity to take part in four WorkSpacesessions, which focused on different issues important to India’s future and sought a uniquely Indianperspective in addressing them.



Excellence Despite the Odds: The Social Entrepreneur in India

Building on the World Economic Forum’s and theSchwab Foundation for Social Entrepreneurship’sfocus on social entrepreneurship, this sessionexplored the concept of social entrepreneurship andhow it could be relevant and applicable in an Indiancontext. Participants were greeted in small groups bya number of entrepreneurs from India and abroad,who explained how they became socially engaged.Groups then broke out again to design their ownventures to address an issue relevant to India’s future.

Nearly all groups agreed that effective socialentrepreneurship is about scale. One person actingalone is a good place to start, but has a small impact;a larger group scales up the results and raisesawareness about an issue. Further, scalability andsustainability require easy access to capital and asecure operating environment for socially-mindedprojects. One group coined the term social incubator– referring to the environment that fosters interest,investment and commitment to social projects.Moreover, social entrepreneurs should leveragecollective experience by collaborating with like-mindedindividuals and companies. Companies should beapproached with a value proposition to leverage theirstrengths, help them expand into new businessmarkets and address gaps in Indian society, such asaccess to clean water or education for rural migratingworkers. Entrepreneurs by nature need to thinkcreatively. For example, one group of participantssought to address the shortage of cooking fuel for therural poor by creating a company producing cookinggas from animal and human waste. Nearly allparticipants thought that, if a socially-minded ventureis not a good business model, it is not worth doing.Social entrepreneurship is not only about doing goodfor good’s sake, they agreed.

Unlocking the DNA of an Indian Multinational

This WorkSpace session focused on exploring theelements that make companies successful.Participants studied various cases, such as the riseand decline of empires, the unfair competitiveadvantage of some economies, the viral nature of the“Facebook” phenomenon, and the concept/lifestylebranding of enterprises such as Manchester United toreview what factors and unique features make themsuccessful – or unsuccessful. Participants examinedwhat elements might be transferable to Indiancompanies, then identified features that couldcontribute to Indian companies’ international growth.

Under the categories of brand, culture, costeffectiveness, growth and innovation, participantsfound a number of positive factors unique to India.Culturally, Indians are positive about the future, learnquickly from others and adapt well to change. Theirsuccess in the last century is a testament to thesecultural characteristics, which have allowed India tothrive in the face of challenges. The brand India itselfis a positive force for international growth. Instead offocusing on low costs, India should develop a highvalue proposition in niche markets. One such nichemarket identified by one group is the wellness market,to which India’s cultural focus on holistic living,spiritualism, yoga and Ayurveda is highly valuable andmarketable. Participants recommended that Indiancompanies operate with a view to sustainability byincreasing brand awareness, expanding country andlocal knowledge and by cultivating talent to leadglobally. Indian companies are smart to look atgrowth, while recognizing their limits. Indiancompanies should identify their competitiveadvantages and exploit them, scale up intelligently andrapidly, and develop new models and concepts.



The World Economic Forum would like to thank the officers and staff of the Confederation of IndianIndustry for their partnership in the India Economic Summit.

The World Economic Forum wishes to recognize the support of the following companies as Partners ofthe India Economic Summit:

Strategic Partners

ABN AMRO BankAccenture AMD American International Group (AIG)Apax PartnersAudi AvayaBahrain Economic Development BoardBain & CompanyBombardierThe Boston Consulting GroupBP BTCACitiClifford ChanceThe Coca-Cola CompanyCredit SuisseDeloitteDeutsche BankDeutsche Post World Net DuPontErnst & YoungKudelski GroupLehman BrothersManpowerMETRO GroupMicrosoft Corporation

Acknowledgements

Morgan StanleyNestlé NYSE EuronextOlayan GroupPepsiCoReliance IndustriesReutersStandard Chartered BankSwiss ReUPSVTB Bank

Summit Supporters

Apollo TyresCapgeminiDepartment of Industrial Policy and Promotion,

Ministry of Commerce and Industry of IndiaDLFEmaar PropertiesFinancial Technologies IndiaRakindo Developers

Service Providers

NDTVTaj Palace Hotel

The World Economic Forum would also like to thank Sheila Dikshit, Chief Minister of the National CapitalTerritory of Delhi, and RAK Investment Authority, Government of Ras Al Khaimah, United Arab Emirates,for hosting activities during the India Economic Summit.





Contributors

W. Lee Howell is Senior Director, Head of Asia and Global Agenda at the Forum. Sushant Palakurthi Rao is AssociateDirector, Deputy Head of Asia at the Forum. The India Economic Summit was under their direct responsibility withChantal Adamson, Senior Event Manager and Summit Coordinator, and Shruti Bhatia, Senior Manager, India andSouth Asia.

Lena Hagelstein, Global Agenda, Programme Manager Geopolitics, and Global Leadership Fellow, World EconomicForum; Vidhi Tambiah, Associate Director, Content Development, World Economic Forum; and Samantha Tonkin,Senior Media Manager, World Economic Forum, worked with Wayne Arnold and Alejandro Reyes, report writerstasked by the World Economic Forum to produce this report.

The World Economic Forum would like to express its appreciation to the summary writers for their work at theSummit. Session summaries are available at: www.weforum.org/india/summaries2007

Editing: Janet Hill, Editor, and Fabienne Stassen Fleming, Senior Editor

Design: Kamal Kimaoui, Associate Principal, Production and Design

Layout: Kristina Golubic, Graphic Designer

Photographs: Prabhas Roy

Special thanks to PricewaterhouseCoopers for their help in preparing data and statistics underpinning this report.



The World Economic Forum is an independentinternational organization committed to improvingthe state of the world by engaging leaders inpartnerships to shape global, regional andindustry agendas.

Incorporated as a foundation in 1971, and basedin Geneva, Switzerland, the World EconomicForum is impartial and not-for-profit; it is tied tono political, partisan or national interests.(www.weforum.org)
