The last couple of weeks have witnessed several events, both national and international, which taken together, are certain to leave a mark on the economic landscape of the country.

Globally, the most significant event has been the revaluation of the yuan. Doubtless, the 2.1 per cent revaluation of the Chinese yuan - as against the market expectation of 15 per cent - is more symbolic than substantive given its small extent, yet it is a positive move, and in my view, its impact would be felt across the world, over time and gradually rather than in one shot in terms of global capital flows.

Yet another consequence of a rising yuan would be that of foreign companies moving towards India in search of greener pastures as a result of which our country could emerge as a major destination for foreign investment for multinational corporations desirous of outsourcing their operations abroad. These developments augur well for India's resurgence, on the world stage.

Our image in the global arena also stands elevated on account of the robust performance of the Indian economy during the first quarter of fiscal 2005-06. The bountiful rains of July this year have imparted optimism to the growth prospects this year as a result of which the overall mood has turned bullish and business confidence is at a new high. The leading indicators portray a healthy picture of the Indian economy as industrial output is up and companies are stepping up production to meet robust demand as rural incomes are boosted by monsoon rains.

Nevertheless, as it always happens, every silver lining is surrounded by a dark cloud. Hence, on the flip side the global oil prices have climbed at an all time high of $67 per barrel and this, I fear, could lead to the revival of inflationary pressures in the economy as domestic petroleum prices are also set to perk up as a consequence thereby casting a spell on the otherwise rosy scenario.

I have been equally concerned about the calamitous rains and the subsequent epidemic that has hit Mumbai over the last few days. I must say that the residents have borne the calamity with great fortitude and strength. We in the Chamber deeply mourn the tragedy and express our deep and heartfelt sympathy to the bereaved families who have lost their loved ones in this misfortune.

While still on the subject, I would like to add that even though the Mumbai rainfall has broken all previous records, this does not deflect our attention from the fact that such natural disasters have become an annual feature which occur with abiding regularity year after year especially during the monsoons. The misery caused by the torrential rains in Gujarat earlier this month, also falls in the same category. I would urge the government for an appropriate disaster management policy to ensure that such events do not recur in future.

Reverting to Chamber activities, I would like to draw your attention to the major programmes held in the centenary year wherein the Chamber's focus has not only been to foster rapid economic development in the states under our command area but also to highlight the issues of concern at the national level. Against this backdrop the Chamber organized two major events in Delhi - an Interactive Meeting with young members of Parliament on Is Common Minimum Programme Good Enough for India Vision 2020 on 3rd August 2005 and a conference on 'Ushering Governance in Board Rooms - How Practical, How Real. Both the meetings served to articulate the genuine, and legitimate concerns of our members at the national level.

The Chamber also organised a presentation on " The NCAER-Business-Standard survey on the great-Indian market." The survey offered some very valuable insights to our members about Indian consumers' purchase preferences and the likely changes that would take place by the end of this decade.

The coming month of September is marked by high-profile centenary level programmes in the States of Punjab, Delhi, Rajasthan, Haryana and Uttar Pradesh. Besides that, at the international level, the Chamber is also proposing to mount a business delegation to China and Vietnam in October this year. Its primary purpose would be to assess first-hand the potential that lies in enhancing bilateral trade with these two countries. The Chamber is also proposing to have an Indo-Pak International Trade Expo (IPEX-2005) in the first week of December 2005 at Amritsar. It would be an ideal opportunity to showcase industrial products of both India and Pakistan and would also throw open a new vista to bring business communities of both the countries together.

K. N Memani
President