The 5th vdma mechanical engineering summit spoke about reforms for the manufacturing sector
The 5th VDMA Mechanical Engineering Summit was held on 23rd September 2016 at The Hyatt Regency, Pune. More than 200 participants constituting mainly the German companies in India (VDMA members) attended this prestigious event. India is the third-largest sales market in Asia for the German engineering industry. Presently more than 550 VDMA member companies are engaged with their own business in the Indian market. In 2015, the export of German machinery to India attained a value of around 2.94 billion Euros which was a 15% increase in comparison to 2014.
Stretching the weather metaphor, the World Bank says that India is “well positioned to withstand near-term headwinds and volatility in global financial markets” compared with other major emerging economies and predicts it will grow at 7.9% by 2018. India’s FDI inflows rose to $44 billion in 2015 from $35 billion in 2014, and the growth has been across the board. However, India is expected to see net FDI inflows of $35 billion this financial year, which would fall short of the last year’s figures.
With the GST bill passed in both houses of Parliament, ratified by majority of the states and the approval of Union Cabinet granted for setting up the Goods and Service Tax (GST) council, chances of the Draft Model Bill for implementation of GST from April 1, 2017 looks within striking distance. Once implemented the GST would be the biggest reform in Indian tax history and would be a big step forward in the endeavors of Ease of Doing Business in India.
The GDP grew at 7.1% in the first quarter of financial year 2016-17 amid sluggish investment and farm output. That dents the prospects of hitting the 8% mark for the full financial year but the government is hopeful that a bountiful monsoon and increment envisaged in the 7th Pay Commission along with various structural reforms could still take the GDP growth closer to that figure.
At the 5th VDMA Mechanical Engineering Summit, Secretary, Ministry of Heavy Industries & Public Enterprises, Department of Heavy Industry, Shri Girish Shankar said presently the Indian manufacturing sector accounts 16% of the GDP and by 2022 it the will increase to 25% creating more jobs. Welcoming GST as the biggest reform in Indian tax history, VDMA India, managing director, Rajesh Nath stated that India will witness a growth of 7.9% by 2018. In sync, the Deputy Consul General of the Federal Republic of Germany, Mumbai, Ms. Gabriele Boner said India is a favoured investment destination for German companies. Wrapping up the inaugural session, President VDMA, Dr Reinhold Festge emphasised on the importance of easing three areas: GST, land ownership and Free Trade Agreement to draw more investments from German companies to India.
The 6th Anniversary issue of the VDMA India Quarterly Newsletter – German Machinery Industry was released on this occasion. This Newsletter covers the development in the various industrial sectors in Germany. The Knowledge Partner – Euro Asia Consulting Private Limited (EAC) released a publication “Manufacturing Competitiveness Of Indian States” along with the other dignitaries and it was circulated amongst the delegates at the Summit. Ashish Kumar, Partner of EAC spoke about the publication and gave an overview of the same.
The first presentation at the Summit was on “How can the next level of growth be unleashed in India” made by Siddharth Kaul, director, Ernst & Young LLP (E&Y). Rajat Mehta, director, corporate sales, head FX flows desk, global markets, The Hongkong and Shanghai Banking Corporation Limited (HSBC) spoke on “Balancing perils and possibilities, an economic overview”.
The post lunch session began with Sunil Mathur, MD, Siemens, on “Internet of Things” wherein he explained the importance and relevance of Industry 4.0 even in the Indian manufacturing industry. The second
leg of the Technical session began with “Leadership in Engineering Industry” by GK Pillai, MD and CEO, Walchandnagar Industries Limited. The session continued with topic on “Skilling in Manufacturing” presented by Dr Andreas Lauermann, President, Volkswagen India.
The final session of the summit was devoted on “Half tenure completion of Govt: Promise vs. Reality”. This panel discussion was moderated by Rajesh Nath. The participants in the discussion were Shri Girish Shankar, Dr Reinhold Festge, Siva Subramanian, MD, Thyssenkrupp Industries India; Gurudas Mustafi, director & CEO, MBE Coal & Mineral Technology India; and Manojit Acharya, MD, Jungheinrich Lift Truck India. It was an interesting discussion covering the views of the government as well as the issues faced by the industry. Though there are challenges, the efforts of the government was recognised by the industry.
The Summit concluded with an evening cocktail and dinner which provided a good interaction and networking opportunity for both the members and speakers at the event. The German companies are quite upbeat about the business opportunities in India and are aligned with the “Make in India” campaign. The German companies operating in India have been quite successful and have established their strong presence over the years. The government’s endevours towards “ease of doing business” is bound to attract new German investment in the years to come.