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2011-12 was a challenging year, for Indian Industry, for India, and indeed, for the world. Amidst

global turbulence and domestic flux, CII set an ambitious chart for the year, sweeping across the

canvas of economic activity. Identifying Affirmative Action, Governance and Skill Development

as the key catalysts in our action agenda, we worked with diverse stakeholders to deploy

change agents such as competitiveness, corporate governance, knowledge

and innovation, policy advocacy, trade and globalization, to meet the

contemporary challenges of human capital, health, inclusive development,

and sustainability, effectively supported by our chain of partners. Our

network of offices in the regions, states and zones across the

country were the delivery channels for our services and

initiatives to enhance the progress,

productivity and prosperity of

our core, our membership.

The year 2011-12 was disappointing on the

economic front with GDP growth decelerating

to 6.9% from the 8.4% of the previous two

fiscal years. Under the theme ‘Business for Livelihood,’

CII continued to focus on its triple objectives of

work on economic policies, engaging with, and

contributing to, the society at large, and improving

its services to member companies.

On the policy front, major announcements on

National Manufacturing Policy and the Strategy for

Doubling Exports in the Next Three Years included

many inputs from CII. CII also comprehensively

worked on raising awareness on the need to make

India a single market through the Goods and Services

Tax, and organising interactions round the country,

in this regard. Similarly, we gave suggestions on the

Direct Taxes Code, the Companies Bill, and other

legislative drafts. Infrastructure was a key area of

emphasis, especially the Power Sector, which has

been facing multiple challenges.

On contributing to society at large, I am happy that

CII continues to make progress on Affirmative Action,

Skill Development, and on Governance.

Mr Harpal Singh, Mentor and Chairman Emeritus,

Fortis Healthcare, took over as CII’s first Ombudsman

on Affirmative Action. Over 12000 SC/ST students

received scholarships, while 33,641 students

received skill training. Notably, CII worked with

the Dalit Chamber of Commerce and Industry to

strengthen vendor development and has initiated an

entrepreneurship programme too.

Skill Development was a major priority. About 10

million people join the workforce each year, and

need to be provided with productive livelihood

opportunities. We

set up three skill centres to train

1000-3000 students each year, and

three more are to come up shortly.

I am particularly pleased with

the eight Skill Gurukuls set up in

partnership with PAN IIT to train

200-400 youth annually.

Under the Governance focus,

the Task Force on Integrity and

Transparency in Governance, set up

in March 2011, came out with a

voluntary Code of Business Ethics.

This is a guide for employees

of member companies on what

constitutes fair and transparent

business practices and what ethical

conduct is required in dealing with

all stakeholders. I urge members

to disseminate the Code to their

employees.

This year, CII launched a new Centre of Excellence,

the CII-Triveni Water Institute, and has initiated the

Centre of Excellence on Technology and Innovation

– Global Innovation and Technology Alliance (GITA).

These take forward our comprehensive spectrum of

advisory and training services for industry.

CII continued its focus on enhancing membership

engagement and providing value-added services to

our members. To engage more with members and

deepen their involvement, 77 Member Meets were

organised in 42 locations and attended by more than

3000 members. As a part of the Outreach initiative of

meeting members at their premises, our colleagues

from the CII Secretariat visited 850 member

companies over the year. We also formally launched

an IT-enabled platform called ‘mycii.in’ for facilitating

business-to-business opportunities, with up-to-date

business leads and tender information. This portal also

allows CII Members to participate

in the various discussion boards and

online communities.

Reflecting the growing presence

of India on the global stage, a

number of Heads of State and

Government visited India this

year. They included Prime Minister

Yoshihiko Noda of Japan, Prime

Minister John Key of New Zealand,

Prime Minister Yingluck Shinawatra

of Thailand, and President Truong

Tan Sang of Vietnam, as well as

top ministers and officials from

many other countries. CII had

fruitful and positive interactions

with the accompanying business

delegations. Similarly, a number of

business to business and business

to Government interactions were

held. CII delegations travelled

to several countries, including the USA, UK, Brazil,

Germany, South Africa, Pakistan, Nepal, Sri Lanka,

Indonesia, Singapore and Malaysia.

Being President of CII has been a humbling

experience, and an extremely rewarding one. I would

like to thank President-Designate Adi Godrej and

Vice President Kris Gopalakrishnan, as well as all the

Regional Chairmen, and the Chairpersons of the

Councils and Committees, for their leadership role

and tremendous support over the year. I wish you all

the best for the coming year.

B. Muthuraman

President, Cll

The CII Voluntary

Code of Business

Ethics is a guide

for employees of

member companies

on what constitutes

fair and transparent

business practices,

and what ethical

conduct is required

in dealing with all

stakeholders

The past year was characterised by marked

deceleration in economic growth, primarily

due to the slowdown in industrial growth. The

manufacturing sector is estimated to have expanded

by a weak 3.9% over the year, about half the rate

of the previous year. Within this scenario, CII

redoubled its efforts for a conducive policy regime

that would boost corporate investments and

manufacturing growth.

The National Manufacturing Policy was a major

policy announcement during the year. It set a

target of increasing contribution of the

manufacturing sector to 25% of GDP by 2025 and

creating 100 million new jobs. CII’s Manufacturing

Council partnered closely with the Department

of Industrial Policy and Promotion, providing

inputs and suggestions for a facilitative policy

roadmap. I must say that the policy is

well-rounded and meets many of our

expectations. We hope it is put into play rapidly.

CII was also active in the preparation process

for the 12th Plan and worked with the Planning

Commission’s sectoral and cross-cutting Working

Groups. I believe that the next five years will be

critical to set India on the path of rapid

manufacturing growth, and CII must continue to

engage with government and industry for

optimal outcomes.

Our agendas for the different sectors continued at

a intensive pace. The Committee on Capital Goods

and Engineering provided detailed inputs for the

Capital Goods report for the 12th Plan and worked

on secondhand machinery imports. Standards and

regulations were highlighted for the chemical sector,

and ICTE hardware manufacturing worked on

simplification of procedures and alternatives to the

DEPB scheme for export promotion.

The mining sector was a particular

area of concern as it has emerged

as a supply bottleneck. We

expressed our concerns with

respect to the draft Mining

and Minerals Development and

Regulation Bill 2011 at a series of

interactions with policymakers.

The impact of illegal mining has

also severely hampered industry

and was discussed

at length.

The MSME agenda continued

with strong interventions in

policy as well as competitiveness.

CII brought out a Sixteen Point

Agenda for MSMEs, emphasizing

supplier diversity and inclusiveness,

innovation and intellectual

property rights, among others.

Several notable achievements marked the year,

including the establishment of a SME Exchange

by BSE and NSE, mandatory 20% sourcing

by public sector enterprises, and passing the

Factoring Regulation Act for addressing delayed

payments. Along with various events covering

different aspects of concern to MSMEs, CII provided

holistic services in competitiveness to small

enterprises.

The ASCON conducted its comprehensive rounds

of surveys which have become the bellwether for

industrial growth. The ASCON platform serves to

I believe that the

next five years will

be critical to set

India on the path of

rapid manufacturing

growth, and CII

must continue

to engage with

government and

industry for optimal

outcomes

converge and shape policies and

highlight areas of intervention.

In Corporate Governance,

CII has always been a leader.

We continued to supply our

recommendations on the landmark

Companies Bill for a facilitative and

light-handed regulatory regime.

The first National M&A Summit

was held during the year, and

CII worked on the Combinations

Regulations with the Competition

Commission.

The Indian economy stands at a

challenging juncture, and it was

a learning experience for me to

see the many ways that CII helps

members adapt to changing

circumstances.

I take this opportunity to thank President, CII, and all

the members who supported me, and look forward to

working with you as the economy heads into a

better year.

Adi Godrej

President-Designate, Cll

Over the last many years, CII has been

continually progressing on new areas of

support to members through dedicated

institutional capabilities. These include the Centres

of Excellence that provide focussed advisory and

training services and certifications in different

fields of competitiveness. But there are always new

opportunities ahead. The CII experience of member

enterprises should be consistently rewarding and

enriching, offering multi-dimensional platforms for

tangible benefits.

Our focus for the year was a strategic endeavour

for engagement, information and value-addition

for members. Under the engagement plank, member

meets at over 40 locations throughout the country

helped bring together some 3000 people who came

forward with valuable perspectives and suggestions

on a range of issues. CII also interfaced with member

companies directly at their own premises by visiting

850 sites under the ‘Outreach Initiative’.

A tool-kit has been put together for new members

to understand and take advantage of the vast

array of diverse services that CII has on offer for its

membership. Twenty-two induction sessions were

conducted for 253 new members during the year.

Similarly, we reached out to new geographies and

segments to attract more members through road

shows held at 15 cities. I must say that there was

encouraging response and we must continue to

raise awareness about CII competitiveness and

networking services.

As part of our information services, we are now

bringing out a comprehensive weekly email to

members, which details out

important relevant information.

The email covers latest economic

statistics and developments, central

and state government notifications

and policies, and a list of important

CII activities and publications.

Legal and tender advisory services

have been added for greater value

to members. The legal services are

available on any tax, compliance,

labour, intellectual property or

other pertinent laws from experts

in respective fields.

I am particularly happy about the

tender notice information which brings together

tenders issued in over 200 countries and provides

a holistic list of upcoming opportunities across all

sectors in a searchable database with option for

email alerts. I would recommend that members

take advantage of this free service offered

through mycii.in.

In today’s challenging times, enterprises need access

to that extra edge that CII provides for growing

their business. CII is a member-driven organisation,

and our initiatives are derived

from member aspirations and

engagement.

As you will see from this Annual

Report, our range of activities

extends into multiple spheres of

human endeavour, spearheading

industry involvement with

society and people. I am proud

that CII’s services catalogue in

competitiveness, networking

events and trade shows is

unmatched.

It is with great anticipation that

I step into my new role in the

coming year, and I look forward to your suggestions

and initiatives so that CII remains

best-in-class.

S. Gopalakrishnan

Vice President, Cll

CII is a

member driven

organisation, and

our initiatives

are derived

from member

aspirations and

engagement