This edition of the newsletter focuses on the areas under the taskforces formed by the B20 China which are important to us considering India’s socio-economic development and priorities of the government.

1. 1Multilateral Newsletter
this IssueInside
Focus Story
Taking the agenda ahead with B20 China in 2016.............2
G20
G20 Financial Leaders Meet In Shanghai................................6
B20 2016 special workshop held in Davos..........................7
INTERNATIONAL TRADE CENTRE
ITC launches business guide on India’s Duty Free Tariff
Preference Scheme for LDCs������������������������������������������������� 8
Indian spice farmers train African farmers in cultivation
practices...............................................................................8
ADB
ADB Loan to Improve Urban Services in Two Northeastern
Capital Cities........................................................................9
February 2016, Volume 3, Issue 7
Message from Mr Chandrajit Banerjee, Director General, CII
Over the years, B20 priorities have been clearly aligned with those of the G20 Summit
which focuses on major goals in global economic development - including financial
reforms, trade, investment, infrastructure, employment and anti-corruption policy. The B20
taskforces consult with the business community and devise list of recommendations for
G20 members. Since 2010, more than 400 policy recommendations have been proposed
and many of these have been incorperated into G20 communiques.
Based on the developments of the global economy and need of individual economies, the G20 will not only
address outstanding issues of the moment to mitigate short-term risks, but also develop forward looking and
creative policy ideas and take collective actions to steer the world economy into the future. In 2016, B20
China continues to support the commitments the G20 has made to promote financing and improving global
economic governance. China hopes that the international business community, international organizations,
consultancies and scholars will work closely to host a successful B20 which would thereby contribute boosting
innovative development, building an open world economy and enhancing global economic governance.
This edition of the newsletter focuses on the areas under the taskforces formed by the B20 China which are
important to us considering India’s socio-economic development and priorities of the government.
Chandrajit Banerjee
Multilateral
oecd
Global economy urgently needs a stronger and more coherent
policy response to promote robust and inclusive growth���������10
ESCAP
New ESCAP report shows disparity in Internet access and costs
in ASEAN subregion�����������������������������������������������������������������11
wORLD BANK
India Signs Financing Agreement with World Bank for
US$3OO Million for Madhya Pradesh Higher Education
Quality Improvement Project...............................................12
NEWSLETTER

2. 2 Multilateral Newsletter
In December 2015, China took over as the chair for G20. Subsequently, B20 China continues to support the
commitments the G20 has made to promote financing and improve global economic governance. China hopes
that the international business community, international organizations, consultancies and scholars will work
closely to host a successful B20 thereby boosting innovative development, building an open world economy
and enhancing global economic governance.
B20 2016 Taskforces
After considering the success of previous B20 taskforces, liaising with G20 members and affiliated business
representatives and reviewing the statistics of three rounds of questionnaire surveys, the B20 China has
established five taskforces namely
• Financing Growth
• Trade and Investment
• Infrastructure
• SME Development
• Employment
The Taskforces are also joined by a special forum focusing on anti-corruption.
CII is the sole Indian Industry body representing Indian Industry in G20-B20 deliberations. Being the secretariat
for B20 in India, CII is fully committed to the G20-B20 process to get the necessary buy-in from the Indian
Industry by giving industry inputs is a continuous on-going process through background research inputs and
through events and visits.
CII has nominated members for the taskforces created by B20 China and is in constant touch with the China
Council for the Promotion of International Trade (CCPIT) - the secretariat for B20.
Considering India’s socio-economic development and priorities
of the ruling government, the most important areas within the
existing TFs that are of India’s interest are as follows
Financing Growth
Roles and Restructuring of Multilateral Development
Banks (MDBs)
Need of about $15-$20 trillion fresh investment over the next
15 years and India needs investment of about $1 trillion in new
infrastructure over the next few years and innovative solutions
were being sought for meeting this massive requirement.
Focus Story
Taking the agenda ahead with B20 China in
2016
FOCUS STORY
Taking the agenda ahead with B20 China in 2016
In December 2015, China took over as the chair for G20. Subsequently, B20 China
continues to support the commitments the G20 has made to promote financing and
improve global economic governance. China hopes that the international business
community, international organizations, consultancies and scholars will work closely
to host a successful B20 thereby boosting innovative development, building an open
world economy and enhancing global economic governance.
B20 2016 Taskforces
After considering the success of previous B20 taskforces, liaising with G20 members and
affiliated business representatives and reviewing the statistics of three rounds of
questionnaire surveys, the B20 China has established five taskforces namely
• Financing Growth
• Trade and Investment
• Infrastructure
• SME Development
• Employment
The Taskforces are also joined by a special forum focusing on anti-corruption.
CII is the sole Indian Industry body representing Indian Industry in G20-B20 deliberations.
Being the secretariat for B20 in India, CII is fully committed to the G20-B20 process to get
the necessary buy-in from the Indian Industry by giving industry inputs is a continuous on-
going process through background research inputs and through events and visits.
CII has nominated members for the taskforces created by B20 China and is in
constant touch with the China Council for the Promotion of International Trade
(CCPIT) - the secretariat for B20.
Considering India’s socio-economic
development and priorities of the ruling
government, the most important areas
within the existing TFs that are of India’s
interest are as follows
Financing Growth
Roles and Restructuring of Multilateral
Development Banks (MDBs)
Need of about $15-$20 trillion fresh
investment over the next 15 years and
India needs investment of about $1 trillion
in new infrastructure over the next few
years and innovative solutions were being
sought for meeting this massive
requirement.


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














3. 3Multilateral Newsletter
The $100 billion New Development Bank (NDB) would provide access to finance to South Africa, India and other
emerging economies at more favorable terms. The Asian Development Bank (ADB) has financed $22.93 billion
in 2014 in building / facilitating educational facilities, roads, access to clean water, sanitation, improved lands
for irrigation, drainage, and flood management initiatives, pollution control and renewable energy.
With 50 member countries and subscribed capital of US$100 billion, the Asian Infrastructure Investment Bank (AIIB),
a Chinese initiative has been aggressively pursuing infrastructure projects across Asia and other regions.
Measures to boost availability of capital for Ems
This is a real concern, as it could lead to capital flight and currency weakness. Recommendation would be to
have an Emerging Market (EM) Fund that could counter large-scale outflows of capital.
India, along with other emerging economies, is concerned about the volatile capital flows resulting from quantitative
easing of advanced economies, which are affecting economies of emerging countries and hence the burden
should be shared. Indian is also in favor of defending the capital controls as legitimate and acceptable defence
against speculative capital flows and press for creating an effective framework for the adjustment process.
TRADE AND INVESTMENT:
Uniform Standards Mechanism
India and emerging economies can use the G20 platform to develop a technical standards ecosystem globally
and develop Uniform Standards Mechanism.
India needs to develop institutions to get large stakeholders in value chains and enhancing capacities of standards
stakeholders. There is need for good investment in this area.
Based on India’s FTAs with other countries, we can select products and improve standards on them.
Uniform Taxation Structure
Renewed focus is needed to implement the BEPS project that aims at curbing tax avoidance by large
multinationals.
Other critical areas need considerable discussions and are of immense importance from India’s point of
view include harmful tax practices, preventing the inappropriate granting of treaty benefits, transfer pricing
documentation and country-by-country reporting, improving the efficiency of mutual agreement procedures
and dispute resolutions, etc.
Global Integration Strategy
India can align its “Act East” policy, “Connect Central Asia” policy, FTAs with ASEAN, negotiation for RCEP
membership, a renewed focus on the neighbourhood policy, etc. with its much broader Global Integration
Strategy.
India needs to develop two strategies - product and market diversification. The US and EU are India’s main export
markets. India needs to diversify its export markets to other regions. Indian exports are highly concentrated on
Focus Story

4. 4 Multilateral Newsletter
Focus Story
petroleum, gems jewellery and other labour intensive products and less on manufactured items. India has to
match its exports with the composition of global trade.
India’s product basket for the global market is very wide but relative value addition is considerably low. India
has to do vertical specialization in its product basket and extend its expertise in high value manufacturing.
Connecting with GVCs
In 2011, nearly half (49%) of world trade in goods and services took place within GVCs, up from 36% in 1995.
Moreover, economies with the fastest growing GVC participation have GDP per capita growth rates, about 2%
higher than the average. This is of concern for countries that are largely excluded from GVCs, including India.
India and other emerging countries can capture more values by creating brands and adopting technology. Indian
MNCs followed GVCs through Merger Acquisitions (MAs).
SMEs from India and developing economies have a thin participation in the GVCs. SMEs are the backbone of
any economy and hence their engagement in value chains are essential for Indian industry to raise their share
in international markets.
Infrastructure
Attention should be paid to increase productivity of investments in infrastructure and green energy by
encouraging application of best practices by setting up an “infrastructure network” to work with the G20 and
other governments and developing a “PPP Toolbox”.
For efficient and effective functioning of PPP, there is need to clearly define the roles of both the partners and
their institutional structure and the need to form special purpose vehicle (SPV) to attract private investment.
The SPVs need to be project specific, investor friendly and also have commercial value.
A few Indian states have implemented the Infrastructure Development Enabling Act. The act is expected to provide
for rapid development of physical and social infrastructure in the state, and attract private sector participation
in the designing, financing, construction, operation and maintenance of the infrastructure projects. While it
should be incorporated nationally, India needs learn from foreign countries.
Project risks need to be identified up-front. The risks should be distributed among stakeholders with mitigation
mechanism.
Cross-Border Connectivity
Emerging countries including India is pursuing many cross-border connectivity projects. Two major projects to
connect India with ASEAN include the India Myanmar-Thailand Trilateral Highway to be completed by 2018 and
the Kaladan Multimodal Transit Transport Project.
ASEAN and India are also negotiating the India-Myanmar-Thailand Motor Vehicles Agreement and the ASEAN-India
Maritime Transport Cooperation Agreement. An ASEAN-India Civil Aviation Task Force will soon be established
to oversee optimization of air connectivity. Tier II and Tier III cities in India could also be connected with the
tourist and business destinations in ASEAN countries.

5. 5Multilateral Newsletter
The Bangladesh, Bhutan, India and Nepal (BBIN) Motor Vehicle Agreement is a major initiative to connect four
South Asian countries. There are ongoing discussions about two visionary projects - the SAARC Regional Railways
Agreement and the SAARC Motor Vehicles Agreement.
SME DEVELOPMENT:
SMEs MSMEs Competitiveness
Industrial Clusters are important means of growth and transformation for SMEs and
MSMEs. Clusters are important drivers of competitiveness and innovation. India and other emerging countries
can leverage the G20 platform to build and exchange expertise on building Clusters.
Access to finance is a critical policy measure India and other emerging countries need to pay attention to. The
G20 can help in fostering most advanced and relevant mechanisms including provision of special incentives for
encouraging larger flow of
Venture Capital Private Equity funds into the sector; more liberal “All-in-Cost Ceilings” for SMEs to raise low
cost funds through the External Commercial Borrowing route; bringing legislation on ‘Factoring Services,’ etc.
EMPLOYMENT:
Skill Development
Global benchmarking - In order to ensure quality with quantity, it is necessary to benchmark the skills of Indian
manpower with the developed skills ecosystems. There is a need to align the national framework with the
international best practices.
Mode-4 / Movement of Natural Persons- Movement of natural persons is one of the important trade-in services
agreed in the General Agreement on Trade in Services (GATS). Developing countries should be given the special
and differential treatment (SD) on mode - 4 (movement of natural persons) especially in areas of IT services,
Legal services, Medical services, Business services, etc.
Indian professionals have developed higher competency in many areas. Providing movement of natural persons
across borders will add economic value to improve local economies.
Focus Story

6. 6 Multilateral Newsletter
Chinese policymakers discussed the country`s economic policies and reform agenda, reassuring the world that
the government has enough policy tools to combat downward pressure as financial leaders from the Group of
20 (G20) nations gathered in Shanghai. On Saturday, financial policymakers from the world’s 20 major economies
pledged to use all policy tools, including monetary, fiscal and structural ones, to strengthen global recovery amid
growing concerns of further downward risks. “The global recovery continues, but it remains uneven and falls
short of our ambition for strong, sustainable, and balance growth,” noted a communique issued after the two
day G20 Finance Ministers and Central Bank Governors Meeting in Shanghai. The policymakers cited volatile
capital flows, slumping commodity prices, escalated geopolitical tensions, a potential United Kingdom (UK) exit
from the European Union, and increasing refugees as major vulnerabilities of the global economy. The gathering
came amid weak global economic growth and increasing financial volatility that saw frequent and drastic falls
in the stock markets across the world.
Click here for more information
G20 Financial Leaders Meet In Shanghai
g20

7. 7Multilateral Newsletter
b20
Business 20 (B20) 2016 Special Workshop was held in Davos on January 21, 2016 to introduce B20’s vision and
discuss preparatory work of the high-profile business gathering. At the seminar, the Sherpa of B20 China, Mr
Yu Ping, reviewed basic information about the vision and program of China’s presidency, and representatives
of the five B20 2016 taskforces introduced their taskforce structures and priorities, respectively focusing on
employment, small and medium-sized enterprise (SME) development, financing growth, infrastructure, and
trade and investment.
The presenters included Mr Zhang Ya-Qin, president of Baidu, Mr Jack Ma, executive chairman of the Alibaba
Group, Mr Zhang Hongli, vice-president of the Industrial and Commercial Bank of China, and Mr Hans-Paul
Buerkner, chairman of the Boston Consulting Group. About 40 people from international organizations and
enterprises took part in the seminar, including the International Chamber of Commerce, the World Economic
Forum, Citi Bank, Giti Tire Group, Baker McKenzie, and Italy’s Intesa Sanpaolo SpA.
The workshop was hosted by Mr David Daokui Li, dean of the Schwarzman Scholars Program and the Mansfield
Freemen Chair Professor of the School of Economics and Management of Tsinghua University.
Click here for more information
B20 2016 special workshop held in Davos

8. 8 Multilateral Newsletter
Businesses in Africa’s least developed countries can use the guide, produced under the SITA
project, to export to India.
Entrepreneurs in least developed countries (LDCs) looking to boost exports can now take advantage of a business
guide on India’s Duty Free Tariff Preference (DFTP) Scheme.
The guide – published under the International Trade Centre’s (ITC) Supporting Indian Trade and Investment for
Africa (SITA) project – is designed to raise awareness and increase understanding of the preferential scheme
among African businesses.
The goal is for more businesses to take advantage of the scheme, eventually resulting in increased trade and
investment between India and African countries.
A reader-friendly guide
The business guide outlines key features of the scheme in a reader-friendly manner. Written in the format of
‘frequently asked questions’, it clarifies complicated issues that exporters and trade policy officials commonly
face.
Topics include the rules of origin criteria, import regulations and standards requirements, which are often
problematic for small and medium-sized enterprises and exporters in LDCs.
By reviewing the main concepts and step-by-step instructions in the guide, exporters in East Africa can gain a
clear understanding of how to make use of the opportunities provided by the DFTP scheme and further benefit
from trade relationships between the continents.
Click here for more information
A team of ginger and turmeric farmers and processors from Ethiopia and Rwanda are now equipped with
skills to better cultivate their spices after training with Indian experts, through a workshop organized by the
International Trade Centre (ITC).
Under ITC’s Supporting Indian Trade and Investment for Africa (SITA) project, the African farmers travelled to
South India for a seven-day workshop to learn the best practices of ginger and turmeric cultivation. The trainings
took place in Kochi, Kerala and Tamilnadu.
Click here for more information
ITC launches business guide on India’s Duty Free
Tariff Preference Scheme for LDCs
Indian spice farmers train African farmers in
cultivation practices
ITC

9. 9Multilateral Newsletter
ADB Loan to Improve Urban Services in Two
Northeastern Capital Cities
ADB
The Asian Development Bank (ADB) and the Government of India signed
an $80 million loan agreement to continue improving infrastructure in two
northeastern state capital cities.
The loan is the third tranche of a $200 million financing facility under the
North Eastern Region Capital Cities Development Investment Program, and
will be used for investments in water supply, solid waste management and
sanitation in Agartala and Aizawl. It will also support ongoing urban reforms,
benefiting nearly a million people, in the two cities. Previous program
tranches have provided assistance to five cities in the northeast—Shillong
(Meghalaya), Aizawl (Mizoram), Kohima (Nagaland), Gangtok (Sikkim) and
Agartala (Tripura).
The third tranche loan from ADB’s ordinary capital resources has a 20-year
term. The Ministry of Urban Development is responsible for implementing
the tranche 3 activities and overall program, which are both due for
completion by June 2019.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the
Pacific through inclusive economic growth, environmentally sustainable
growth, and regional integration. Established in 1966, it is owned by 67
members – 48 from the region.
Click here for more information
“Urban infrastructure
and services in the
northeast of the country
are grossly inadequate
and this third tranche
loan will help Agartala
and Aizawl improve and
expand services, as well
as strengthening the
institutional, managerial,
and financial capacity of
service institutions,”
Teresa Kho
Country Director
ADB’s India Resident Mission

10. 10 Multilateral Newsletter
OECD
Policymakers need to deploy broad-based reform plans that incorporate monetary, fiscal, and structural policies
to stimulate persistently weak demand, re-launch productivity growth, create jobs and build a more inclusive
global economy, according to the OECD’s annual Going for Growth report.
Going for Growth 2016 offers a comprehensive assessment of how government policy reforms affect economic
performance and their citizens’ well-being. It identifies new priorities to revive growth and underscores the
importance of synergies among policies in designing reform programmes.
This year’s edition of Going for Growth shows that a slowdown in the pace of reforms first observed in the 2013-
14 period continued during 2015, notably in advanced economies, but also in emerging ones. New reforms are
aimed at improving educational outcomes and lifting the labour force participation of women. But not enough
is being done to boost innovation or streamline product and labour market regulation, which are critical aspects
of today’s productivity and equity challenges.
Going for Growth 2016 notes that the pace of reforms has varied both across countries and policy areas. Among
the highlights:
The slowdown in the pace of reform observed over the 2013-14 period has continued in 2015, even after¾¾
taking into account measures that are in the pipeline but that have yet to be fully implemented.
In Europe, Southern European countries —in particular Italy and Spain— have more reform achievement¾¾
than Northern European countries, which were less impacted by the global economic crisis.
Outside Europe, countries where a relatively high number of measures related to Going for Growth¾¾
recommendations have been taken include Japan, among advanced economies, and China, India and Mexico,
in the case of emerging economies.
Relatively more actions are being taken to lift the labour force participation of women and to improve¾¾
educational outcomes, while fewer actions are observed in innovation policy, public sector efficiency or
product and labour market regulation.
In countries where income inequality is a particular concern, the majority of reform actions taken would¾¾
help to narrow the income distribution.
Click here for more information
Global economy urgently needs a stronger
and more coherent policy response to
promote robust and inclusive growth

11. 11Multilateral Newsletter
United Nations. Economic and Social Commission for Asia and the Pacific
(ESCAP)
New ESCAP report shows disparity in Internet access and costs in ASEAN
subregion
Despite rapid ICT development in some member countries, the ASEAN subregion is still
facing formidable challenges in narrowing the digital divides and maximizing
socioeconomic benefits from ICT investments, according to a new report by the United
Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the
National Information Society Agency (NIA) of the Republic of Korea.
The Pre-Feasibility Study on the Asia-Pacific Information Superhighway in the ASEAN
Sub-region: Conceptualization, International Traffic Quality Analysis, Network
Topology Design and Implementation Model was prepared to support the Asia-Pacific
Information Superhighway, which promotes seamless broadband infrastructure
development in the region to narrow digital divides, create an enabling Internet
ecosystem and facilitate implementation of the Sustainable Development Goals (SGDs).
The Report shows that while countries with submarine cable landing points generally
enjoy more affordable, faster Internet access of good quality, inland countries are not
fully benefiting from the Internet bandwidth. As a consequence, the--- percentage of
households with Internet access ranged from 86 per cent in Singapore to 5.1 per cent in
Lao PDR and 2.2 per cent in Myanmar in 2014.
The Report provides an overview of the ASEAN countries’ existing terrestrial fiber
connectivity, broadband penetration – fixed and mobile – and Internet traffic. Based on
the analysis, the Report highlights the importance o-f trans-border terrestrial fiber
connectivity and the establishment of more Internet Exchange Points (IXPs) in the
subregion to manage Internet traffic and drive down costs. The report proposes that
New ESCAP report shows disparity in Internet
access and costs in ASEAN subregion
Despite rapid ICT development in some member countries, the ASEAN subregion is still facing formidable challenges
in narrowing the digital divides and maximizing socioeconomic benefits from ICT investments, according to a
new report by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the
National Information Society Agency (NIA) of the Republic of Korea.
The Pre-Feasibility Study on the Asia-Pacific Information Superhighway in the ASEAN Sub-region: Conceptualization,
International Traffic Quality Analysis, Network Topology Design and Implementation Model was prepared to
support the Asia-Pacific Information Superhighway, which promotes seamless broadband infrastructure development
in the region to narrow digital divides, create an enabling Internet ecosystem and facilitate implementation of
the Sustainable Development Goals (SGDs).
The Report shows that while countries with submarine cable landing points generally enjoy more affordable,
faster Internet access of good quality, inland countries are not fully benefiting from the Internet bandwidth. As
a consequence, the­­­percentage of households with Internet access ranged from 86 per cent in Singapore to 5.1
per cent in Lao PDR and 2.2 per cent in Myanmar in 2014.
The Report provides an overview of the ASEAN countries’ existing terrestrial fiber connectivity, broadband
penetration – fixed and mobile – and Internet traffic. Based on the analysis, the Report highlights the importance
o­f trans-border terrestrial fiber connectivity and the establishment of more Internet Exchange Points (IXPs) in
the subregion to manage Internet traffic and drive down costs. The report proposes that regional IXPs are set-
up to be operator-neutral to encourage competition and innovative services.
Click here for more information
ESCAP

12. 12 Multilateral Newsletter
A financing agreement for IDA credit of US$ 300 (equivalent) for the Madhya Pradesh Higher Education Quality
Improvement Project was signed with the World Bank. The Financing Agreement was signed by Mr. Raj Kumar
(Joint Secretary, Department of Economic Affairs) on behalf of Government of India and Mr. Onno Ruhl, Country
Director, World Bank (India) on behalf of the World Bank. A Project Agreement was also signed by Mr. K K
Singh, Principal Secretary, Department of Higher Education, Government of Madhya Pradesh and Mr. Onno Ruhl,
Country Director World Bank.
The Objective of the project is to improve student outcomes especially of disadvantaged groups in selected
Higher Education Institutions (HEIs) and to increase the effectiveness of the Higher Education System in Madhya
Pradesh. The project has three components (1) Grants Support to Higher Education Institutions (2) State Level
Initiatives and (3) Improving System Management.
The project has been designed as a result based financing programme, implying that funds will be released based
on the achievement of specific results or disbursement linked indicators (DLls). The DLls have been designed to
ensure outcomes such as increase in enrolment of full time students, increase in transition rate, achievement
of NAAC accreditation criteria by participating HEls, better transparency in the affairs of participating institutions
and strengthening of governance structure
The closing date of Madhya Pradesh Higher Education Quality Improvement Project is 31st August, 2021
Click here for more information
India Signs Financing Agreement with World
Bank for US$3OO Million for Madhya Pradesh
Higher Education Quality Improvement Project
Copyright © 2016 by Confederation of Indian Industry (CII), All rights reserved.
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corrections.
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