Theme: “Meeting Customer Expectations through 7M’s”
Inauguration Ceremony and Keynote address by Chief Guest
Mr. S Maitra, Chief Operating Officer, Maruti Suzuki India Ltd.
Distinguished Guests, Delegates, Ladies and Gentlemen,
It is a great honor for me to deliver a keynote speech at this very important forum of International Conference & Exhibition on Aluminum Casting Industry organized by Aluminum Casters’ Association of India (ALUCAST).
I would like to first congratulate the organizing committee, who have worked very hard for the excellent arrangements of this seminar and for the hospitality towards the guests and delegates.
Today, as requested by the organizers, I would be covering the topics as shown in the slides.
As you appreciate, the topics requested by the organizers for me to discuss in this limited period of the keynote speech are wide ranging, and I hope the key speakers would be further touching upon the issues in details during the subsequent sessions following this keynote speech.
Ladies and Gentlemen,
As per report of International Monetary Fund, the Global Economy is “Coping with High Debt and Sluggish growth”
The global growth slowed down from 3.83% in 2011 to 3.28% 2012. The same is the scenario in Advanced economies (1.59% to 1.29% in same period) and 7.76% to 6.67% in Developing Asia. The slowdown has been observed in all regions.
The major reasons of the slowdown have been as shown in the graph. •
Earthquake in Japan,
Emerging economies slowdown and
Currently fear of US “Fiscal cliff”.
Fiscal and monetary steps are being taken. Progress was made in recent times and more remain to be done.
All these would be resulting into % Investments/ GDP likely to go up from 23.86 to 24.39 % worldwide in 2013. Growth rate is predicted to be increasing to 3.62 % worldwide and to 7.2 % in Developing Asia.
Now Ladies and Gentlemen,
As far as India is concerned aggregate demand is weakening in 2012-13 led by investment slowdown. Corporate sales growth has also moderated significantly. Business confidence got affected and caused trade to decelerate. On top of an already slowing domestic demand, India further faces weaker external demands.
As a result GDP declined from 6.83% in 2011 to 4.86% in 2012. Inflation has stayed sticky at around 7.5% in 2012-13 so far. But India has added another 16.25 Mn human population, which is more than China in same period. There has been 20% fall in value of INR against USD in the last 18 months. 6.8 fall in exports in H1 2012-13.
But RBI lowered the cash reserve ratio (CRR) by 1.5% on a cumulative basis, the statutory liquidity ratio (SLR) by 1.0%, the repo rate by 0.5% and infused over 1.7 trillion of liquidity through outright open market purchases.
As a result, liquidity in 2012-13 so far has stayed in line with policy objective. The improved prospects for Rabi, following the reduction in monsoon deficit with late rains is also expected to contribute to improving growth and inflation outlook, even though the recovery may take some time to set in. Other recent reforms taken are like reduction in Fuel price disparity (Diesel vs Petrol), Capping subsidised LPG cylinders, FDI liberalization, Disinvestment in PSUs, Further FDI liberalisation (in insurance & pension) & Twelfth Five-Year Plan. With all these measures, 2013 will definitely be better than the current year.
Coming to Auto Industry
The auto industry is a leading driver of global economic growth, says the International Organization of Motor Vehicle Manufacturers. The industry is a leading employer throughout the world, with 9 million people involved in making 60 million vehicles, or 5% of global manufacturing jobs. Indirect employment from automotive activity is fivefold, representing 50 million jobs connected indirectly to the auto industry. Other industries involved in the manufacture and service of vehicles include...
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