VDMA Members Meet-Northern Region

VDMA

The 2nd VDMA Members Meet Northern Region was held on 24th May 2019 at Hotel Radisson Blu Plaza, New Delhi which was attended by 75 people. India is the second-largest sales market in Asia for the German engineering industry.

The 2nd VDMA Members Meet Northern Region was held on 24th May 2019 at Hotel Radisson Blu Plaza, New Delhi which was attended by 75 people. India is the second-largest sales market in Asia for the German engineering industry.

The Summit commenced with a welcome note from Mr. Rajesh Nath, Managing Director, VDMA India. Mr.Nath spoke about the successful completion of 5 years of the current government led by the Honourable Prime Minister Shri Narendrabhai Modi. The people of India have again bestowed confidence in his leadership as the election results declared one day before this meet clearly showed overwhelming victory for the party. There were challenging economic problems to solve when India elected the new government in May 2014. The inflation was high and therefore controlling the fiscal deficit and current account deficit was the topmost priority of the government. Having done the repair work in the last 5 years the government was now concerned with reduced spending by consumers, squeezing of consumer credits, flattening income of rural workforce, low price realization for farmers and so on. Added to that India’s industrial output contracted in March 2019, first time in nearly two years and dragged down by decline in key manufacturing and capital goods sectors. The manufacturing sector contracted 0.4 percent compared to 5.7 percent expansion in March 2018.Therefore   the key challenges for the new government would be how to control the downtrend in GDP growth and push it back to 7 to 7.5 percent level as anything below 6 percent can be quite disastrous for our country. It is extremely important that more liquidity is available to the financial systems and consumer spending can be increased since consumption accounts for over 60 percent of India’s GDP. As India marches ahead on path of growth, it is absolutely necessary that the newly elected government continues the investment in infrastructure to drive the core industries forward and help in creation of jobs for the young population. It is of utmost importance that Skill development continues to be a focus for the government as well as the industry. If the country has to grow at around 7 percent, it is imperative that the industrial growth have to be around 9 to 10 percent.  Even at the bilateral trade: the export of German machinery to India had a healthy growth of around 10 percent to touch Euro 3.4 billion in 2018. The top sectors of German machinery exports to India were Power Transmission, Textile Machinery, Machine Tool, Valves & Fittings and Construction Equipment. In fact, Germany is the second most important machinery and technology supplier to India with a market share of around 15 percent. However, in 2019 the first half of the year has been slow, but with the new government in place the mood of a turnaround in the manufacturing sector is expected to happen in the next 6 months.

The Chief Guest for the evening was Dr.Renate Schimkoreit Minister, Head of Department of Economics and Globalisation, German Embassy. She was then invited to speak on “The future of Indo German Industrial collaboration. According to Dr. Renate creation of industry awareness, establishing a skill-building expert group and an Indo-German industry ecosystem will definitely help boost business and trade ties between India and Germany. The focus on both countries should be to strengthen their efforts to create awareness for Industry 4.0, especially among SMEs.The government is now doing faster trademark and patent registrations and is also focussing on manufacturing competitiveness.

Then the release of Members Meet Special Issue was done by the dignitaries. The Session 1 started of with a presentation on “Internal control environment and need for fraud risk assessment in India given by Mr.Badri Vishal Mahajan Director Risk & Information Technology Services Mayur & Batra The presentation covered about how frauds occur and the essentials to mitigate allied risk. There is a pertinent need for Fraud Risk Assessment in every organisation.The presentation also highlighted about Risk Assessment which is a very critical component of Risk Management. The emerging concern areas across companies in India are Indirect costs, travel costs, cash expenses, Assets, scrap sales and Reporting The presentation also touched a very important aspect of financial crimes or fraud risks affiliated with business risks.

The next presentation was on “Application of Stainless Steel in the Manufacturing sector in India and it was presented by Mr.Rajeev Gupta General Manager Jindal Corporate Management services Pvt Ltd. The presentation started the economic impact of Corrosion and how it can be overcome. The Stainless Steel is the only solution to corrosion. It also clearly explained the reason behind stainless steel not getting rusted. The usage and application of stainless steel was also covered in this presentation.

The last presentation of the evening was on Industrial Transformation, Employment creation & Enabling Ease of Doing Business by Mr. Anuj Bindal Senior General Manager & Head of Business Development Mahindra World City (Jaipur) Limited. The presentation tried to cover the different opportunities provided by the Mahindra World city present at Chennai, Jaipur & Ahmedabad to set up industrial units and ensure that business runs smoothly. As India is one of the world’s fasting growing economies and there is an opportunity for a huge domestic market there is a pertinent need to have a world class business infrastructure. With the government focussing on Made in India, many companies look for modern amenities in order to start their business.          

The final Session of the Meet was devoted on the Panel discussion on “Expectation of the German Manufacturing Sector from the New government “. This Panel discussion was moderated by Rajesh Nath, Managing Director, VDMA India. The participants in the discussion were Mr.Karl Quehenberger , Managing Director & CEO of Andritz Hydro, Mr. Tulsidharan Vishwanathan, Director , Digital SAP India Pvt Ltd, Mr.Jetinder Nath Senior General Manager Frudenberg NOK Pvt Ltd and Mr. Rajnish Magan , CFO Beumer India.  The discussions commenced by Mr. Rajesh Nath, asking each of the panel members their opinion about whether the last 5 years had been good for them from business point of view and what are the expectations from the newly formed government. Most of the panellist appreciated the policies formulated by the Government in the last 5 years. The bold steps taken by the Government like GST and demonetisation actually helped the business fraternity. The Digital movement by the Government was one of the many positive steps taken in the last 5 years. The panellist were of the opinion that the next 5 years will be very crucial as there is a pertinent need of quick implementation of policies which had already been formulated. The panellists expressed confidence that the government will ensure that the manufacturing sector contributes 25 percent to the GDP of the country by 2025 .

The Summit concluded with the concluding remarks of Mr. Rajesh Nath thanking all the participants and speakers for making this meet very successful. There was positivity in the air about the government which was again re-elected for the next 5 years will deliver the promise it had made to the people of India.