Global India Business Meeting28-30 June 2009, Munich, Germany

a Horasis-leadership event

Report

Horasis is a global visions community committed to enact visions for a sustainable future (http:/www.horasis.org)

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Co-hosts:State of Bavaria, with Messe München International and vbw (Bavarian Business Association)Federation of Indian Chambers of Commerce and Industry (FICCI)

Co-chairs:PrinceAbdullah bin Mosa'ad Chairman, Saudi Paper Manufacturing Co, Saudi ArabiaRahul Bajaj Member of Parliament and Chairman, Bajaj Auto, IndiaPeter Bauer Chief Executive Officer, Infineon, GermanyClaude Beglé Chairman, Swiss Post, SwitzerlandPramod Bhasin Chief Executive Officer, Genpact, IndiaGerhard Cromme Chairman, Siemens andThyssenKrupp, GermanyJim Goodnight Chief Executive Officer, SAS, USAKris Gopalakrishnan Chief Executive Officer, Infosys, IndiaAlan Hassenfeld Chairman of the Executive Committee, Hasbro, USAPrakash Hinduja Chairman, Hinduja Group, SwitzerlandBaba Kalyani Chairman, Bharat Forge, IndiaKhater Massaad Chief Executive Officer, RAK InvestmentAuthority, UAELiu Jiren Chairman, Neusoft, ChinaNasser Munjee Chairman, Development Credit Bank, IndiaGV Krishna Reddy Chairman, GVK Power & Infrastructure, IndiaDhruv M. Sawhney Chairman,Triveni Engineering & Industries, IndiaHarshpati Singhania Managing Director, JK Paper; President, FICCI, India

Strategic Partners:Baker & McKenzieRAK Investment Authority

Knowledge Partners:Arshiya InternationalCLSAGenpactHavas Media

Media Partners:International HeraldTribune

Special Partner:Strategic Foresight Group

Frank-Ju ̈rgen Richter, President,Horasis, welcoming participants

Reviewing the Programme

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Global India Business Meeting 2009

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Table of Contents

Foreword 6

India and Bavaria to Intensify Cooperation 16

What is India’s Impact on Global Growth? 18

Honoring the Indian Business Leaders of theYear 2009 20

Need for Rule-based Multilateral Trading System 23

Commerce Minister Sharma Meets Global CEOs in Germany 25

Foreword

The inaugural Horasis Global IndiaBusiness Meeting convened in Munich on28-30 June 2009.The meeting was held at acritical time, coming less then a month afterthe formation of the new Indian government.Held under the theme ‘Overcoming theCrisis – Opportunities for India’ and withmore than 250 business and governmentalleaders taking part in the event, the GlobalIndia Business Meeting provided the platformfor India, Europe and the rest of the worldto discuss the implications of the globaleconomic crisis for India and to shape thepost-crisis environment.Also, the meetingwas conceived to reflect on the increasedemphasis of Indian firms to build global andsustainable brands – and thus contributingto the healing of the world economy.Thisreport distils the outcomes and observationsthat emerged from the meeting.

In a turbulent region at a time of multiplecrises confronting the world, India hasemerged after the 2009 election preparedto face both challenges and opportunitiesawaiting the country.The United ProgressiveAlliance, led by the Congress Party, hasretained power.As one of the participants,

Rahul Bajaj, Member of Parliament andChairman, Bajaj Auto, India, put it: ‘Thestrength of India’s voice in the internationalcommunity has proven that the reforms thathave been implemented made the countrybetter able to weather the global crisis.’Nasser Munjee, Chairman, DevelopmentCredit Bank, India, added that ‘India isexpected to emerge from the current globalcrisis before the average of the worldeconomy.’ Prince Abdullah bin Mosa’ad,Chairman, Saudi Paper Manufacturing Co,Saudi Arabia, declared that ‘when marketsdried up, India was quick to refocus itstrade and marketing efforts in targetingregions not severely affected by theeconomic downturn such as Saudi Arabiaand other Gulf economies. Saudi Arabia andIndia are partners of natural choice.’

Participants reached consensus that• Global and domestic challenges are testingthe resilience of the Indian economy. Still,the economy will grow by approximately6-8% in 2009 and 2010• Investments in infrastructure, agriculture,healthcare and education will be the keydrivers to ensure long-term and inclusivegrowth

Arrival of Participants

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• India will tap the synergies with itsneighbouring countries and play a morepronounced role in global trade andinvestment

The new confidence was on full display atthe opening dinner when the Indian UnionMinister of Commerce and Industry AnandSharma spoke candidly about the impact ofthe downturn.‘The crisis is real and serious,’the Minister said.‘In the present globaleconomic meltdown, an emerging power

like India must readjust with the newrealities.The challenges require continuity,as well as correction.When the crisis isover, investment will be made in thoseeconomies where there is deeper trust. Byand large our economy is stable and strong.We in India have perhaps done better thanothers in this crisis.’

Minister Sharma also pointed out how farwe have come with globalization whereIndia in the meanwhile is investing more inGermany than Germany in India with morethan 100 of India’s leading companies beingpresent in Germany.At the same time heemphasized the challenge of his country toproduce inclusive growth where the 7 %GDP increment would benefit also themajority of people in his country who arestill living at the poverty line. MinisterSharma made it a point to transcend thisnecessity to all countries in the world thatare facing similar fundamentals as India.

Minister Sharma announced that India willintensify its global economic engagement.He sent the message that theWTO talksneed to be reenergised.‘India won’t be

His Royal Highness Prince Abdullah, Saudi Arabia, sharing hisviews on the global economic outlook

Rahul Bajaj, Chairman, Bajaj Auto, with Hans Steininger, CEO,MT Aerospace

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Anand Sharma, Indian Minister of Commerce and Industry, on how to connectIndia with the world

‘India is expected to emerge from thecurrent global crisis before the averageof the world economy’Nasser Munjee, Chairman,Development CreditBank, India

stumbling block’, he added.‘India is deter-mined to complete the Doha trade deal.’At the same dinner session,Martin Zeil,Deputy Minister President of Bavaria,reviewed Germany’s and Bavaria’s economicrelations with India.‘Germany is India'slargest trading partner in the EuropeanUnion and India will continue to be one ofthe most important investment locationsand trading partners for the Germaneconomy,’ he said.‘ I see signs of potentialeconomic growth next year as Germanywill benefit from the continued economicgrowth generated by fast expandingeconomies like India. India is a driver ofglobal commerce.’

Supachai Panitchpakdi, Secretary-General, UNCTAD, Switzerland, added that‘it is important to further reform India’s

economy so that the country can use tradeto recover when the crisis eases.’ SupachaiPanitchpakdi stressed that India has beenone of the central and influential players inthe multilateral trading system, a championof developing country interests. India foughthard for development issues to be placedfirmly and explicitly at the heart of theDoha trade agenda, and succeeded. He alsounderlined that the world economies havereached a critical time in these negotiations.‘We need India’s constructive engagementand leadership to help guide theWTO talkstowards a successful conclusion that wouldbenefit all members.’

Participants had a chance to learn from theState of Karnataka, one of India’s leadingstates.Murugesh R Nirani, Minister forLarge & Medium Industries of Karnataka

Anup Mudgal, Consul General of IndiaSupachai Panitchpakdi, Secretary-General,UNCTAD

Jay Desai, CEO,Universal Consulting - whatcan Indian entrepreneurs learn from their globalcounterparts and vice versa

Alan Hassenfeld, Chairman,Hasbro, in discussion with Hubert Burda, Chairman,Hubert Burda Media

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Minister Sharma and Minister Zeil

outlined his strategy for achieving highquantitative and qualitative growth.Karnataka has developed into India’s centreof IT and technology. Murugesh R Niraniexplained to the participating businessleaders how their respective governmentswill reshape the states’ agenda goingforward.Martin Zeil, Deputy MinisterPresident of Bavaria, stressed how importantKarnataka is for Bavaria’s economic future– as the Bavarian hi-tech industry is anatural fit with India's emerging technologypioneers.‘We are glad to be involved withIndia – that’s were things happen rightnow,’ said Randolf Rodenstock, President,vbw, Germany.

Business leaders from over 20 countries,including CEOs from the Middle East,China, Latin America, Russia as well as

Europe and North America came togetherfor one and a half day retreat to debate thecritical requirements for Indian firms tosuccessfully expand their operationstowards a global level-playing field.TheHorasis Global India Business Meetingwas co-hosted by the Federation of IndianChambers of Commerce and Industry(FICCI) and the State of Bavaria, withMesse München International and vbw(Bavarian Business Association), andsupported by a group of private sectorpartners led by Baker & McKenzie andRAK Investment Authority.Amit Mitra,Secretary General, FICCI, told participantsthat ‘the Global India Business Meetingprovides an excellent platform to discussIndian firms’ strategies, challenges andcontributions to overcome the globaleconomic crisis and to develop into trulyglobalized corporations.’

Indian firm’s corporate globalization was atthe heart of the agenda indeed, with ajoining of forces among an engagedcommunity of business leaders, led by theco-chairs: Prince Abdullah bin Mosa’ad,Chairman, Saudi Paper Manufacturing Co,

‘When markets dried up, India wasquick to refocus its trade andmarketing efforts in targeting regionsnot severely affected by the economicdownturn such as Saudi Arabia andother Gulf economies’Prince Abdullah bin Mosa'ad, Chairman, SaudiPaper Manufacturing Co, Saudi Arabia

Claude Begle ́, Chairman, Swiss Post, listening to his co-panelistsAmit Mitra, Secretary General, FICCI

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Murugesh R Nirani,Minister forLarge & Medium Industries, State of Karnataka

Randolf Rodenstock, President, vbw

Saudi Arabia; Rahul Bajaj, Member ofParliament and Chairman,Bajaj Auto, India;Peter Bauer, Chief Executive Officer,Infineon, Germany;Claude Beglé,Chairman, Swiss Post, Switzerland; PramodBhasin, Chief Executive Officer, Genpact,India;Gerhard Cromme, Chairman,Siemens andThyssenKrupp, Germany;Jim Goodnight, Chief Executive Officer,SAS, USA; Kris Gopalakrishnan, ChiefExecutive Officer, Infosys, India; AlanHassenfeld, Chairman of the ExecutiveCommittee, Hasbro, USA; PrakashHinduja, Chairman, Hinduja Group,Switzerland; Baba Kalyani, Chairman,Bharat Forge, India; Liu Jiren, Chairman,Neusoft, China;Nasser Munjee, Chairman,Development Credit Bank, India; GVKrishna Reddy, Chairman, GVK Power &

Infrastructure, India;Dhruv M. Sawhney,Chairman,Triveni Engineering & Industries,India;Harshpati Singhania, ManagingDirector, JK Paper; President, FICCI, India.

A major theme discussed at the meetingwas the significance of technology toimprove productivity and boost the Indianeconomy’s knowledge base.‘Technologywill help businesses emerge stronger fromthe economic crisis. Companies that investin IT and integrate technology into itsstrategies will also boost their potential for

Jim Goodnight, Chairman, SAS, on globalizationand education

'Riding the next wave of financial services in India'

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‘Technology has been a key enabler forsocial inclusion – both in China andIndia’Liu Jiren, Chairman,Neusoft, China

Liu Jiren, Chairman,Neusoft - comparing Indiawith China

Christian Ude, Lord Mayor, City of Munich

sustainable growth,’ Pramod Bhasin, ChiefExecutive Officer, Genpact, India,observed.‘There is lot of reason foroptimism in terms of technology-drivengrowth,’ concluded Liu Jiren, Chairman,Neusoft, China.‘Technology has been a keyenabler for social inclusion – both in Chinaand India. Outsourcing is here to stay ascost is the driving factor in these turbulenttimes. Organizations are looking to reduceoverhead in terms of resources andmaintenance costs. IT Outsourcing is thelean and mean solution for these firmsgetting their work done.’ Peter Bauer,Chief Executive Officer, Infineon,Germany, added that ‘we have to leveragemajor shifts in the global economy toenhance sustainable growth throughinnovation in technology.And we need todo the necessary to ensure that technologyrelated investments increase corporateperformance.’

While the world’s attention is often focusedon India’s superb IT-industry 70% of theIndian population still lives on the

countryside and is expected to play a muchbigger role in India's growth picture.Dhruv M. Sawhney, Chairman,TriveniEngineering & Industries, India, asked howthe government can address theinfrastructure roadblocks that are holdingback a possible rural economic boom.Reflecting on this comment, PrakashHinduja, Chairman, Hinduja Group,Switzerland reasoned how India’s economicmodel shall look like in the future.‘Thecountry's unique development model -relying on domestic consumption and high-tech services - has brought a quartercentury of record growth. Should theconsumption-driven model becomplemented by an export-drivenelement?’ Claude Beglé, Chairman, SwissPost, Switzerland expressed his fears about

Nasser Munjee, Chairman,Development Credit Bank andDhruv Sawhney, Chairman,Triveni Engineering & Industries

GV Krishna Reddy, Chairman,GVK Power and Infrastructure, talking about India'sinfrastructure

‘It is important to further reformIndia’s economy so that the country canuse trade to recover when the crisiseases’Supachai Panitchpakdi, Secretary-General,UNCTAD, Switzerland

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Gunjan Sinha, Chairman,MetricStream - what should domesticand foreign firms do to thrive in India's financial markets

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mounting protectionism in a world joltedby crisis and despair.‘The world’s leadingtrading powers should resist the tendencytowards protectionism.We need freemarkets to shape this post-crisis world.India will do very well in a world routed infree and fair trade.’

Further discussion topics for the meetingincluded India’s policy priorities after theelections and the country’s role in global

trade, as well as a specific focus on themeslike merger & acquisitions, branding,human resources and the efforts to ensuresustainable growth – all rather practicaltopics to support Indian firms efforts toglobalize their operations. Growing into aglobal firm means much more thanestablishing a portfolio of units in differentcountries around the world.‘We need newmodels of cooperation to integrate ourglobal activities and to generate knowledgefor the achievement of sustainable growth,’said GV Krishna Reddy, Chairman, GVKPower & Infrastructure, India.‘I met at theGlobal India Business Meeting with peersfrom around the world to discuss and createsuch models of cooperation.‘

Kris Gopalakrishnan, CEO, Infosys, during theKarnataka reception

Dhruv Sawhney, Chairman,Triveni Engineering &Industries

Kenneth Juster, ExecutiveVice President, Salesforce -IndianTechnology Pioneers' Global Awakening

ManfredWutzlhofer, Chairman,Messe Munich International Arun Shourie, Former Minister of Disinvestment, addressingparticipants

‘We need to learn to explore the futureby enacting corporate transformationswith a long term horizon’Kris Gopalakrishnan, Chief Executive Officer,Infosys, India.

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In the closing plenary session, panellistsreflected on the key take-aways of theGlobal India Business Meeting anddiscussed how to build global firms ofIndian origin: Improving corporateperformance has to be a priority for thenew Indian government, argued GerhardCromme, Chairman, Siemens andThyssenKrupp, Germany.‘To do so willentail such measures as investment ininfrastructure, both from the public andprivate sector,’ he concluded.‘Unemploy-ment must be addressed. Education is thekey - it is the solution to unemploymentand all other challenges in India,’continued Jim Goodnight, Chairman,SAS, USA.‘Aspiring global Indian firmshave to increase their interactions on alllevels with their counterparts from foreigncountries,’ said Kris Gopalakrishnan,Chief Executive Officer, Infosys, India.‘Andwe need to learn to explore the future byenacting corporate transformations with along term horizon.’

Arun Shourie, former Indian Minister ofDisinvestment, Communication andInformation, AlexThomas, Director of theRas Al Khaimah Investment Authority(RAKIA) andManfredWutzlhofer,Chairman of Messe München International,addressed the Gala Dinner on 29 June.‘Relations between India and Germany arevery good,’ said Arun Shourie. He predictedthat ‘at this moment, no matter which

administration is in office in India, relationshave been very close and are likely tobecome even closer.’ ManfredWutzlhoferheld that ‘the Indian market is one of ourkey markets of future growth.We alreadyestablished a subsidiary in India to capturethe potential India is offering.To my mindthe India-Europe axis is extremelyimportant as a factor for economicprosperity on a global level.’AlexThomasconcluded that ‘India's fast-growingeconomy has opened a wide range ofbusiness opportunities.We intend to buildon this momentum to further expand our

Gulu Lalvani, Chairman, Royal Phuket Marina,Thailand

AlexThomas,Director, RAK Investment Authority,speaking during the gala dinner

Michael Ducker President International FedExExpress reflecting on strategies to boost success inIndia

Gerhard Cromme, Chairman, Siemens, gives his view on corporategovernance

activities in the country.’ RAKIA whichmanages the funds of the emirate Ras AlKhaimah, part of the United Arab Emirates,spearheads several large-scale infrastructureprojects in the region.

Horasis has created the Global IndiaBusiness Meeting to bring together CEOsfrom emerging markets – with India at thecore – and business leaders from thedeveloped world.We envision to attractleading Indian and global CEOs year afteryear, creating a community of engagedleaders from business and government.Participants from India perceive themeeting as a global platform for aconstructive dialogue with leaders fromother world regions.

The Global India Business Meeting is held

in the recognition that growth strategiesrequire thought leadership and mutuallybeneficial peer-to-peer networks.Themeeting is structured to provide amaximum amount of knowledge exchangeand interaction in a variety of formal andinformal settings.The meeting shall permitcandid and intensive dialogue whilstincorporating a diversity of views andexperience.

The Global India Business Meeting closedon a note of optimism for India and calledfor stronger collaboration between privateand public sector initiatives to address theglobal economic turbulences.As HarshpatiSinghania, Managing Director, JK Paper;President, FICCI, India, concluded, thestrong engagement of leaders joining theGlobal India Business Meeting showed ‘the

A boardroom dialogue session

John Studzinski,Managing Partner, Blackstone,shares his views on M&A

Madhu Koneru, CEO,Trimex - on Indian entrepreneurs doingbusiness out of the Gulf region

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importance of India and entrepreneurialmentality and spirit of people who lookbeyond the crisis and see opportunities.’Michael Ducker, President International,FedEx Express, USA, added:‘Our hope isthat the meeting will encourage a closepartnership between India and the world inorder to stabilize the global financial systemthrough entrepreneurship, innovation andinternationalization. In short, to allow bothIndia and the world to better face thechallenges of globalization in thesechallenging times.’

Horasis looks forward to welcoming youback to next year’s edition of the GlobalIndia Business Meeting.

Dr. Frank-Jürgen RichterPresidentHorasis:The GlobalVisions Community

Nipa Sheth, Chief Executive,Trust Group,listening to Dr Supachai's speech

Niraj Sharan, Chairma,Aura, talking aboutentrepreneurship

Anton Kathrein, CEO,KathreinWerke

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Shri Anand Sharma with participants

India and Bavariato IntensifyCooperation

by Martin Zeil, Deputy Prime Minister ofBavaria

The State of Bavaria proudly co-hosted theinaugural Global India Business Meeting inMunich, from June 28th until June 30th2009. Inspired by the theme ‘Overcomingthe Crisis - Opportunities for India’,representatives from Germany, India andthe world, both from politics and thebusiness community, gathered in theBavarian capital city to reflect on thechances that the current global crisis couldbring about – for India and for its partnersworldwide: For it was the core conclusionto be drawn of this internationally well-attended conference to give privilege tomultifaceted and global cooperation overeconomic and political ‘go-alone-strategies’.

The Bavarian-Indian relations best exemplifythis tendency towards closer economicintegration since our bilateral trade andinvestment flows have seen a substantial risein recent years. Our bilateral trade volumeaccounted for 2 billion € in 2008 and roseby more than 20% compared to the yearbefore. India is currently ranking no. 4 inBavaria’s list of its most important tradingpartners in Asia.

As for its impressive economic rise, whichis comparable to that of Brazil and China,India is indeed one of the new and futureengines of the world economy.What hasbecome clear both from the speechesduring the opening receptions on the firstnight of the conference and also in thesessions that were hosted by the Bavarian

Business Association on the second day, wasthe consensus that India is expecting adynamic period of growth – even though itsgrowth figures lagged markedly behindwhat had been forecast before the worldwidecrisis had destabilized our economies.Although India is far from the epicentre ofthe global financial and economic crises, thedownturn in advanced economies is slowlyspreading to the major emerging marketswith India being one of them.

But along the lines of the theme of theconference, it was confidence that prevailedover partly controversial and livelydiscussions and panels.The participantsshared the common conviction that anycountry’s growth in a globalized world isdependent on strong and well-performingpartners: whether it be purchasing andexport markets or co-operation partners inresearch, development and also production.Opinions diverged as to whether we wouldsee a setback in the liberalisation of marketsand as to the future role of government.Similarly divergent were opinions onwhether the large number of young peoplewas a curse or a blessing with regard to

Anand Sharma in discussion with Martin Zeil, Deputy Prime Minister of Bavaria

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‘We shall give privilege to multifacetedand global cooperation over economicand political go-alone-strategies’Martin Zeil,Deputy Prime Minister of Bavaria,Germany

their needs for training and the apparentinaptitude of Indian government to provideit.

Bavaria, the host country of this event, islocated right in the heart of Europe andopens up unique market opportunities forinternational companies: Bavaria is theturnstile in the East-West and North-Southtrade routes and can be reached easily fromall the economic centres in Europe.Anexcellently developed infrastructure in thefields of transport, telecommunications andenergy guarantees optimal supply facilitiesand links with international markets. In itslocation at the geographical centre ofEurope, Bavaria not only offers access tothe German-speaking market, the biggestmarket in the EU, but also opens the doorsto the markets in Central and EasternEurope.The Bavarian market itself is one ofthe strongest in the world in terms ofpurchasing power.

With over 1,400 foreign high-techcompanies located in Bavaria, internationalbusiness has become an integral part of theBavarian economy.These companies havechosen Bavaria because of its excellentbusiness environment, good infrastructureand a healthy mix of high-tech companies

and traditional industries. Bavaria boasts atightly knit network of small- and mediumsized industrial, crafts and serviceenterprises. Every investor encounters awide spectrum of competitive suppliers,purchasers and co-operation partners in theregion. More than 1,200 foreign high-techcompanies from some 30 countries withestablishments in Bavaria appreciate thesefactors.

Bavaria is the key investment destination forindustries like life sciences, automotive,electrical and mechanical engineering, bio-technology, medical technology,environmental technology and aerospace.Today, Bavaria is a centre of the Germanaviation and space travel industry andcomputer industry.Thanks to Audi andBMW, it is a strong centre of theautomotive industry, - and the headquarterof numerous companies of worldwiderepute in the field of automation andmachine construction, electrical andmechanical engineering, bio-technology,medical technology and environmentaltechnology. Other high profile globalcompanies are Siemens, EADS,Adidas,Puma and MAN, just to name a few.

For investors seeking advice, there is 'Investin Bavaria', a specialist team within theBavarian Ministry for Economic Affairs,Transport, Infrastructure, andTechnology,which is responsible for recruitment ofinvestors and location marketing.

Welcome dinner at the Bavarian Royal Residence

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His Highness Sheikh Salman Al Kalifa, Bahrain, with Maria Cattaui,Member of the Board,Petroplus Holding, and Prakash Hinduja, Chairman,Hinduja Group

What is India’sImpact on GlobalGrowth?

By Harshpati Singhania, President, FICCI

FICCI is honoured to co-host this meeting,which aims to be a conclave of top CEOsfrom all sectors of the Indian economy andother parts of the world.We congregate inthe dynamic state of Bavaria with a view tofind strategies to address the pressing issuesfacing global business today.We also hope toevolve new models of cooperation betweenIndian industry and their internationalcounterparts.

FICCI, as the thought leader and harbingerof positive change for Indian industry, isproud to be part of this initiative. I amconfident that the in-depth discussions andnetworking at this forum will create newpartnerships and precipitate new thinking.The agenda for the Global India Business

Meeting is very topical: the global melt-down has wreaked havoc on the prevailingworld financial architecture and on the realeconomy of the mightiest countries.At leastfour major changes are currently gettingmanifest.

• First, is the old order changing? Are newplayers destined to replace the existingones?• Second, is the structure of globalmanufacturing industry undergoingradical change?• Third, we had become complacentassuming that the Malthusian Challengehas been solved. there is a new spectrehaunting the world – the spectre of foodsecurity.• The fourth issue I would like to highlightis whether the philosophical basis ofestablished orthodoxy in the world offinance is being challenged and will atectonic shift manifest in future.

Harshpati Singhani, President, FICCI, and Amit Mitra, Secretary General, FICCI, greeting Anand Sharma

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‘India has remained a relative islandof calm’Harshpati Singhania, President, FICCI

Let me touch upon each of these for amoment: First, the seating order at theglobal high table has changed with the G20summit and a new power matrix isevolving.

It isn’t the developed world which has thereserves today, but it is countries such asSaudiArabia to Qatar to Brunei that have thefunds, surprisingly.Today, Indian companieshave invested more in the US, UK andGermany than those countries have in India.

Second, Manufacturing has been migratingfrom developed countries to emergingcountries not just because of cost arbitragebut equally because of market dynamics andscalability. Here India presents hugeopportunity including the bottom of thePyramid.A major study done by FICCIpoints in this direction.

Third, let me turn to food.The spike infood prices in 2008 caused by high globalcommodity prices and coupled with theeconomic slowdown has raised thespectre of food security for millions.Compounding this issue is the tusslebetween land for food and land for fuel.How will business, technology, and R&Daddress this challenge?

Lastly, will the free market model of theAnglo-Saxon variety survive this onslaught?Are we going to see greater emergence ofdirigiste dogma with state intervention andownership as the new models.Are weentering the domain of much greaterregulation and monitoring the markets thatever seen beforeWorldWar II.

In the end, I am proud to say that in themidst of this global turmoil, India hasremained a relative island of calm. Ourgrowth rate has clocked 6.7% for thefinancial year 08-09 despite the turmoil andwe from Indian business are confident thatwe will take this trajectory back to the 9%level in the next two years.

'A Roadmap for the Acquisition of Foreign Firms'

Entering the Emperor's Hall

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Rahul Bajaj and Pramod Bhasin, the Indian Business Leaders of theYear, withThomas Gilles and Frank-Ju ̈rgen Richter

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Honoring theIndian BusinessLeaders of theYear 2009

ByThomas Gilles, Partner,Baker & McKenzie

The global economy has been in turmoil formuch longer than most of the internationalcommunity had hoped or anticipated.However, India has not been affected to thesame degree as other major economies andhas shown signs of a more rapid recovery.India’s strength and resilience in thesedifficult times is in no small part attributableto the tremendous entrepreneurial spirit ofthe business leaders driving its economicgrowth and development.

A jury led by Horasis and Baker &McKenzie therefore took the opportunity atthe first Global India Business Meeting torecognize and honor two business leaderswho exemplify this entrepreneurial spirit:Mr. Rahul Bajaj, chairman of the BajajGroup and Mr. Pramod Bhasin, founder,president and CEO of Genpact.

The Bajaj Group, which was founded in1926, is today one of India’s top 10enterprises in terms of revenue. Bajaj Auto,the group’s flagship company, is currentlyranked as the world's fourth largestmanufacturer of motorcycles. Bajaj Autotook ten years to produce its first 100,000vehicles.Today, the company sells over twomillion vehicles per year.

Genpact is the largest business processoutsourcing company in India, a leader inthe globalization of services and technologyand a pioneer in managing businessprocesses for companies around the world.Genpact was established in 1997 as theIndian base of GE Capital’s business processservices operations. Genpact became anindependent company in 2005 and nowemploys over 36,000 people.

When the jury reviewed the businessprofiles of the award winners, it wasparticularly impressed by three features,each of which seemed to be a key factor totheir success. First, both Mr. Bajaj and

‘If I had to go to jail for the excessproduction of a commodity that mostIndians needed, I didn’t mind.’Rahul Bajaj,Member of Parliament and Chairman,Bajaj Auto, India

Mr. Bhasin anticipated the internationaliza-tion of the Indian economy; second, bothplay an active role in civil society; and third,both possess a tremendous entrepreneurialspirit.

Both the Bajaj Group and Genpact haveinternationalized – organically and throughacquisitions – over a sustained period oftime. Bajaj Auto began importing andmanufacturing motorcycles in India morethan 50 years ago.Today, Bajaj Auto hasexpanded its operations to Africa, LatinAmerica, and Southeast Asia.The 27entities of the Bajaj Group operate on aglobal scale in a diverse array of industrysectors. In addition to the auto sector, theBajaj Group also operates in the financial,household appliance, steel, travel, andinfrastructure sectors, among others.Furthermore, since 2001, the Bajaj Groupand the German financial giant Allianz haveoperated two joint ventures in theinsurance industry.

From its establishment, Genpact pursued avery aggressive strategy ofinternationalization, expanding operationsto Mexico after its first year of independentoperation. Following this move, thecompany continued to expand rapidlyacross the globe.Today, Genpact has an

international network of over 35 operationcenters in 12 countries: India, China,Guatemala, Hungary, Mexico, Morocco, thePhilippines, Poland, the Netherlands,Romania, Spain, and the United States.

Mr. Bajaj and Mr. Bhasin both understandthe importance of social responsibility andplay an active role in civil society. Mr. Bajajhas been a member of the Indian parliamentsince 2006. Before joining the parliament,he was an outspoken supporter of India’scontinued growth and development, oncefamously declaring: “I will not support onepolitical party or the other, but I willsupport India.” In this spirit, the BajajGroup has established numerousfoundations and trusts designed to servelocal communities throughout India.

Under Mr. Bhasin’s leadership, Genpactfounded numerous programs to activelyengage its employees in social projects,including projects allowing employees todonate a small portion of their salary tolocal charities; skill-based volunteerprograms designed to “teach a man to fish”as opposed to “giving a man a fish”; mobilecomputer literacy classrooms installed onfive fully equipped buses that are used tooffer computer training to over 6000students in Rajasthan, India’s largest state.Mr. Bhasin also serves as chairman of theNational Association of Software andService Companies (“Nasscom”), thepremier trade body and chamber ofcommerce in India for more than 1200Indian and multinational membercompanies in the IT and business processoutsourcing industries.

Both award winners represent the best ofIndia’s tremendous entrepreneurial spirit.

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‘Where else will companies go if theywant 30-40% savings?’Pramod Bhasin, Chief Executive Officer, Genpact,India

Rahul Bajaj, Chairman, Bajaj Auto, during the opening plenary

In the 1970’s, a time when India’s economywas characterized more by an onerousregulatory framework than the opportunityfor development, Bajaj Auto’s production ofmotorcycles was capped at 24,000 per year.Bajaj Auto exceeded this cap by more than25%. Recalling these days, Mr. Bajaj oncesaid: “If I had to go to jail for the excessproduction of a commodity that mostIndians needed, I didn’t mind.”When thetwo-wheeler segment began to liberalize inthe early 1980s, Japanese manufacturersmade an aggressive push to gain control ofthe market. In spite of these efforts, BajajAuto not only secured its market share, butincreased it.After Bajaj Auto was hit hardby the recession and the stock marketcollapse of 2001, some predicted that thedays of BajajAuto were numbered. However,under Mr. Bajaj’s leadership, Bajaj Auto wasable to re-invent itself, invested heavily inR&D, built new factories and emergedstronger than ever.

Mr. Bhasin has always been among thevanguard in providing innovative solutions,even in adverse business climates. Heemerged as a visionary in the field ofbusiness process outsourcing, convincingthen-parent General Electric to set up a callcenter in India at a time when other businessprocess outsourcing companies flinched atthe perceived lack of infrastructure in India.

In addition, he was among the firstemployers to specifically target employeesover fifty years of age as a stable andexperienced core workforce. He also wasamong the first employers to give part-timejobs to housewives, allowing them to dodata processing from their homes.WhenGenpact became an independent entity in2005, Genpact’s revenues rose fromUS$490 million to US$1.04 billion in justthree years. Even in times of crisis, Genpacthas been able to maintain large profits. In aconcise summary of Genpact’s competitiveadvantage during these difficult times, Mr.Bhasin has stated: “Where else willcompanies go if they want 30-40% savings?”

Mr. Rahul Bajaj and Mr. Pramod Bhasinexcel in leadership, innovation, globalreach, and economic performance and thustruly deserve to be honored as IndianBusiness Leaders of theYear 2009.

Thomas Gilles with the two award winners

Pramod Bhasin, CEO,Genpact, making a point during the plenary session on global tradeand investments

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Need forRule-basedMultilateralTrading System

ByThe Hindu, 30 June 2009

Trade Ministers of India, Brazil and SouthAfrica have come out with a jointdeclaration asserting that the needs andaspirations of developing countries mustremain in the forefront of the Doha RoundofWorldTrade Organisation talks.

The declaration came on the sidelines of theOrganisation for Economic Cooperationand Development (OECD) ministerialmeeting in Paris and ahead of the GlobalIndia Business Meeting in Munich, at whichUnion Commerce and Industry MinisterAnand Sharma was a lead speaker.

The statement came after Mr. Sharma heldtalks with his Brazilian and South Africancounterparts seeking their engagement for

the resumption of the Doha Round and alsofor protecting the interests of developingnations.The declaration, highlighting theneed for a rule-based multilateral tradingregime, emphasised that it would beunreasonable to expect further unilateralconcessions from the developing countriesin the present economic crisis.

Mr. Sharma made it clear to OECDdelegates that protectionist tendencies onthe part of some developed countries intimes of economic downturn wouldadversely impact the developing countries.

Tayeb Kamali,Vice Chancellor,Higher Colleges ofTechnology,UAE

‘I urge global companies to invest inIndia. India offers very attractivereturns’Anand Sharma,Union Minister of Commerce andIndustry, India

Suhas Gopinath, CEO,Globals Inc - what are the risks whenadvancing form a start-up to a global business

Sharon Bamford, CEO,UK India Business Council, moderating the session on Investing Overseas

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He reaffirmed India’s commitment to thesuccessful conclusion of Doha Round forcreating a rule-based multilateral tradingsystem, which would be fair and equitableand address the aspirations of thedeveloping countries.

Speaking at the Global India BusinessMeeting organised by Horasis in Munich,Mr. Sharma urged global companies toinvest in India as it offered attractivereturns even as the world grappled with the

worst-ever recession and slowdown. ChiefExecutive Officers of leading firms fromIndia, Germany, the US and Saudi Arabia,including Siemens,Volkswagen, Bajaj Autoand Infosys, were present.

Minister Sharma joining the opening panel

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Tom Schick, ExecutiveVice President,AmericanExpress, on challenges global investors are facingwhen operating in India

Paolo Martelli, Director South Asia, IFCSimon Zadek,Managing Partner,Accountability,moderating the sustainability panel

CommerceMinister SharmaMeets GlobalCEOs in Germany

By PressTrust of India, 29 June 2009

Commerce and Industry Minister AnandSharma today asked CEOs of globalcompanies to invest in India as the countryoffers attractive returns on investments,even as several economies are in the grip ofrecession.

‘The investments are not only fully pro-tected, but also provide high rate of returns.This was acknowledged by the CEOs ofmajor companies,’ Sharma said from Munichon phone.The minister addressed the GlobalIndia Business Meeting organised by Horasisin the German city.

CEOs of leading firms from India, Germany,the US and Saudi Arabia, including Siemens,Volkswagen,AirAsia, Bajaj Auto, GenpactIndia and Infosys attended the conclave.Despite a slackening pace during the second-half of the last fiscal, India attracted $27billion foreign direct investment in 2008-09.

Sharma said none of the CEOs had raisedany bottleneck or policy problems with himand ‘there is a great respect for thecountry’.This is because when several bigmarkets of the world are passing through arecession,‘India continues to be one of thefastest growing economies.’

The Indian economy grew by 6.7 per centin 2008-09 and is projected to expand by 7per cent in the current fiscal, while theWorld Bank has forecast that the globaleconomy would shrink by 2.9 per cent in2009.

Attending the Global India Business Meeting,Chairman of Hasbro Alan Hassenfeld saidthat his company, the makers of the worldfamous Monopoly gameboard, would beinterested to invest in India.‘Hassenfeldsaid he has been investing in Japan, Koreaand China, he wants to invest in India too,’FICCI Secretary General Amit Mitra saidquoting the Hasbro chief. Likewise, PeterBauer, CEO of Germany-based softwarefirm Infineon told Mitra he is ‘looking atIndia in a big way.’

‘I am looking at India in a big way’Peter Bauer, Chief Executive Officer, Infineon,Germany

Peter Bauer, CEO, Infineon, on investments intechnology

Utpal Sheth, CEO,Rare Enterprises, reflecting oninvestment strategies overseas

Neena Gill, President, European ParliamentDelegation for Relations with India

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At the world famous MarienplatzThe Bavarian Royal Residence

Greetings from the Balcony of the MunichTownhall

BavarianTourist Guides

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