CONCEPT NOTE
In a world troubled by economic slowdown, the forces of enduring growth need to be strengthened
holistically. This will necessitate sustained global efforts from all players, in consonance and
coordination. Global partnerships on fundamentals of the world economy can be re-energized in order
to serve as a springboard for future growth.
Within the fragile global economic environment, India's pace of GDP growth remained well above 6 per cent and is expected to come in at close to 7 per cent for the current financial year 2012-13. To meet its aspirations for rapid and inclusive growth, it would need to work closely with overseas partners for supporting an enabling environment. India can lead in identifying new growth opportunities across the world and devise innovative strategies to leverage these optimally for all stakeholders in the global economy. This would derive from its capabilities in addressing a vast domestic market of low-income consumers with appropriate and affordable goods, services and technologies.
The Partnership Summit 2013, the major international conference of the Confederation of Indian Industry, is themed 'Global Partnerships for Enduring Growth', and would enable dialogue on the vital multi-country linkages that will spark the next phase of global growth. To be held in Agra, India's major tourist hub as well as a growing industrial city in the populous and vibrant state of Uttar Pradesh, The Partnership Summit 2013 would highlight the investment opportunities emerging from rapid poverty alleviation in India and offer ideas for how a new class of consumers can become a new dynamic for growth.
Global Economy: Both advanced and emerging economies experienced slowing pace of growth over past months. The debt crisis rocked the Eurozone, which was expected to fall into recession for the second time in three years. The European Central Bank's pledge to buy bonds of troubled economies without limit helped restore confidence.
GDP in the US maintained a pace of 1.5-2 per cent, and the unemployment position improved. Japan is still recovering from the previous year's devastating tsunami, struggling to grow through the first half of 2012. The OECD cut its forecast for growth for the top seven advanced economies, basing its assessment on recession in Europe.
Among emerging economies, both the giants of India and China experienced weaker growth. In China, the deceleration in GDP stretched into its seventh consecutive quarter, and the country has set a target of 7.5 per cent for 2012, the lowest in 13 years, owing to weak demand in overseas markets and subdued fixed investment pace. According to the IMF, tighter policies in as well as flagging demand in advanced economies have impacted growth in emerging economies, now expected to moderate to 5.3 per cent in 2012.
While the ECB has taken steps to ensure that member economies do not default, the repercussions of recession on the rest of the world have impacted the hesitant recovery from the global economic crisis of four years ago. With its tool-box of measures run down in the second round of global slowdown, the world has to evolve new paradigms to ensure enduring growth.
Indian Economy: India's pace of GDP growth has been in line with global developments. In the first half of calendar 2012, growth stood at 5.4 per cent, deriving strength from private consumption, particularly from the thriving rural areas, rather than export markets. Robust internal dynamics are not only India's route to growth, but also offer an opportunity to the rest of the world for demand.
Those international investors maintain confidence in India's growth narrative is borne out in the continued flow of foreign funds into the country's manufacturing and services sectors from both direct and institutional sources. The vibrancy of the rural economy is evident in small towns which are increasingly affluent, spending new-found purchasing power on high-end products such as after-shave lotions and hair conditioners. The penetration of mobile phone subscribers has crossed 40 per cent in rural India, driving a new form of communication and market access.
At the same time, Indian entrepreneurs have emerged as a dynamic force on the global stage. Large Indian companies are becoming multinational in outlook, seeking opportunities in other markets and driving up the proportion of their turnover from overseas. Bolstered by new economic agreements with regions and countries, Indian enterprises are looking outwards for their growth, and thereby creating jobs and livelihood opportunities across the world. For example, India is among the top ten fastest-growing sources of FDI into the US, extending benefits across sectors such as pharmaceuticals, IT, healthcare, etc.
Enduring Growth: In a world where borders are effectively being erased in economic terms, globalisation and increased economic integration alone can disperse forces of growth from resurgent economies to recessionary economies. Long-term growth horizons must leverage emerging sustainable forces, such as growing demand in low-income countries, expanding workforces, and robust private entrepreneurship. A global partnership of governments, corporates, small enterprises and workers can alleviate some of the ills of the world economy today.
The Partnership Summit 2013 is an interactive forum that brings together multiple stakeholders and policy thought-leaders. It will be a platform to exchange ideas and evolve solutions to the most urgent challenges confronting the world today. The Summit is to be held in Agra, the tourist town made famous by the Taj Mahal that represents the romance and beauty of India - and also underscores the mathematical, architectural and construction heritage of modern India. The Summit would highlight the growing opportunities in Uttar Pradesh, India's largest state with 200 million people, which is setting in place a new architecture for economic and industrial growth.
The Partnership Summit 2013 is a collaboration of the Department of Industrial Policy and Promotion of the Ministry of Commerce and Industry of India, the Government of Uttar Pradesh, and the Confederation of Indian Industry. It is the 19th such annual event organized by CII.
Within the fragile global economic environment, India's pace of GDP growth remained well above 6 per cent and is expected to come in at close to 7 per cent for the current financial year 2012-13. To meet its aspirations for rapid and inclusive growth, it would need to work closely with overseas partners for supporting an enabling environment. India can lead in identifying new growth opportunities across the world and devise innovative strategies to leverage these optimally for all stakeholders in the global economy. This would derive from its capabilities in addressing a vast domestic market of low-income consumers with appropriate and affordable goods, services and technologies.
The Partnership Summit 2013, the major international conference of the Confederation of Indian Industry, is themed 'Global Partnerships for Enduring Growth', and would enable dialogue on the vital multi-country linkages that will spark the next phase of global growth. To be held in Agra, India's major tourist hub as well as a growing industrial city in the populous and vibrant state of Uttar Pradesh, The Partnership Summit 2013 would highlight the investment opportunities emerging from rapid poverty alleviation in India and offer ideas for how a new class of consumers can become a new dynamic for growth.
Global Economy: Both advanced and emerging economies experienced slowing pace of growth over past months. The debt crisis rocked the Eurozone, which was expected to fall into recession for the second time in three years. The European Central Bank's pledge to buy bonds of troubled economies without limit helped restore confidence.
GDP in the US maintained a pace of 1.5-2 per cent, and the unemployment position improved. Japan is still recovering from the previous year's devastating tsunami, struggling to grow through the first half of 2012. The OECD cut its forecast for growth for the top seven advanced economies, basing its assessment on recession in Europe.
Among emerging economies, both the giants of India and China experienced weaker growth. In China, the deceleration in GDP stretched into its seventh consecutive quarter, and the country has set a target of 7.5 per cent for 2012, the lowest in 13 years, owing to weak demand in overseas markets and subdued fixed investment pace. According to the IMF, tighter policies in as well as flagging demand in advanced economies have impacted growth in emerging economies, now expected to moderate to 5.3 per cent in 2012.
While the ECB has taken steps to ensure that member economies do not default, the repercussions of recession on the rest of the world have impacted the hesitant recovery from the global economic crisis of four years ago. With its tool-box of measures run down in the second round of global slowdown, the world has to evolve new paradigms to ensure enduring growth.
Indian Economy: India's pace of GDP growth has been in line with global developments. In the first half of calendar 2012, growth stood at 5.4 per cent, deriving strength from private consumption, particularly from the thriving rural areas, rather than export markets. Robust internal dynamics are not only India's route to growth, but also offer an opportunity to the rest of the world for demand.
Those international investors maintain confidence in India's growth narrative is borne out in the continued flow of foreign funds into the country's manufacturing and services sectors from both direct and institutional sources. The vibrancy of the rural economy is evident in small towns which are increasingly affluent, spending new-found purchasing power on high-end products such as after-shave lotions and hair conditioners. The penetration of mobile phone subscribers has crossed 40 per cent in rural India, driving a new form of communication and market access.
At the same time, Indian entrepreneurs have emerged as a dynamic force on the global stage. Large Indian companies are becoming multinational in outlook, seeking opportunities in other markets and driving up the proportion of their turnover from overseas. Bolstered by new economic agreements with regions and countries, Indian enterprises are looking outwards for their growth, and thereby creating jobs and livelihood opportunities across the world. For example, India is among the top ten fastest-growing sources of FDI into the US, extending benefits across sectors such as pharmaceuticals, IT, healthcare, etc.
Enduring Growth: In a world where borders are effectively being erased in economic terms, globalisation and increased economic integration alone can disperse forces of growth from resurgent economies to recessionary economies. Long-term growth horizons must leverage emerging sustainable forces, such as growing demand in low-income countries, expanding workforces, and robust private entrepreneurship. A global partnership of governments, corporates, small enterprises and workers can alleviate some of the ills of the world economy today.
The Partnership Summit 2013 is an interactive forum that brings together multiple stakeholders and policy thought-leaders. It will be a platform to exchange ideas and evolve solutions to the most urgent challenges confronting the world today. The Summit is to be held in Agra, the tourist town made famous by the Taj Mahal that represents the romance and beauty of India - and also underscores the mathematical, architectural and construction heritage of modern India. The Summit would highlight the growing opportunities in Uttar Pradesh, India's largest state with 200 million people, which is setting in place a new architecture for economic and industrial growth.
The Partnership Summit 2013 is a collaboration of the Department of Industrial Policy and Promotion of the Ministry of Commerce and Industry of India, the Government of Uttar Pradesh, and the Confederation of Indian Industry. It is the 19th such annual event organized by CII.
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