Business

#Pact: Could the Modi, Merkel meet pave way for revival of EU-India free trade talks?

The leaders of India and Germany pledged on Monday to revive efforts to reach an Indo-European free trade pact after talks fell apart this year, and struck deals to promote clean energy and make it easier to do business.

Although Chancellor Angela Merkel and Prime Minister Narendra Modi made no mention in conversations with journalists of resuming talks on a free trade agreement between India and the European Union, it was perhaps the most significant "deliverable" of her trip to New Delhi.

The leaders "committed themselves to bringing about the earliest possible resumption of talks", said a joint statement issued after their three-hour talks.

Asia's third-largest economy has been relatively insulated from a slump in global trade, but Modi still needs to boost exports for his pitch to investors to "Make in India" to create skilled jobs for millions of young Indians.

Germany, Europe's largest economy, is looking to expand its presence in India to compensate for a slowdown in China.

Merkel's delegation was joined by bosses from household names like Siemens, Airbus, E.ON and Thyssenkrupp.

The trade talks have been on ice since earlier this year when India walked out in a row over exports of generic drugs to the European Union.

Germany, a world leader in renewable energy, will also provide more than 2 billion euros (£1.6 billion) in aid for solar projects and green energy corridors - or high-efficiency power grids - as part of a broader push for sustainable development.

The assistance, part of a raft of agreements signed in New Delhi, dovetails with efforts to bind India into a global debate that will culminate in the COP21 climate change summit in December.

"We look forward to a concrete outcome at COP21 in Paris that strengthens the commitment and the ability of the world, especially of poor and vulnerable countries, to transition to a more sustainable growth path," Modi told reporters.

India, the world's third-largest emitter of greenhouse gases, was the last major country to submit its energy strategy ahead of the U.N. climate conference.

India's energy plan seeks to boost energy efficiency but makes no commitment to reduce emissions of greenhouse gases - reflecting its view that richer nations bear most responsibility for global warming.

Responding, Merkel said: "We have understood, Prime Minister, that climate protection needs to be embraced by the people - who also have to reap a benefit."

India and Germany also signed an agreement to fast-track business approvals, providing German firms with a single point of contact to help them navigate a web of red tape that often thwarts initiative.

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#CommonSense: Why diversity in the work place really does matter.

As one of few black women in a senior media role, I have a burning passion to ensure the industry embraces diversity of all types.

Aside from the fact that it is clearly morally correct, I firmly believe it is essential to the continued success of advertising and media agencies.

The value of diversity in improving business performance in any industry is underlined by McKinsey’s recent ‘Diversity Matters’ report which mined data from nearly 400 public companies across a range of industries in the UK, USA, Canada and Latin America.

“When companies commit themselves to diverse leadership, they are more successful.  More diverse companies, we believe, are better able to win top talent and improve their customer orientation, employee satisfaction, and decision-making, and all that leads to a virtuous cycle of increasing returns”, the report states.

According to the report, in the United States, there is a linear relationship between racial and ethnic diversity and better financial performance: for every 10% increase in racial and ethnic diversity on the senior executive team, earnings before interest and taxes (EBIT) rise 0.8%.

In the United Kingdom, greater gender diversity on the senior executive team corresponded to the highest performance uplift in the report’s data set: for every 10% increase in gender diversity, EBIT rose by 3.5%.

It’s great to see the evidence from McKinsey, but in my industry the fact that a more diverse workforce will improve business performance is really just common sense.

Our role is to help advertisers connect more effectively with their target audiences.  That means we have to understand their audiences.  Since their audiences are increasingly diverse, we will do this job better if our staff reflect all aspects of their diversity and difference.

The black and ethnic minority population in England and Wales stands at 14% and, according to the Institute of Practitioners in Advertising's ‘Multicultural Britain’ report, England and Wales will be as diverse as London is now (with around 40% of the population from a BAME background) by 2051.

The wider media industry – as Lenny Henry pointed out in his speech at BAFTA last year – is struggling to keep up. Certainly we’re making progress.

The nations’ favourites soaps are meant to reflect life in the UK.  We see black and ethnic minority characters on these soaps: Coronation Street – check; Emmerdale – check; EastEnders – check; even Doctors – check.

We have for a long time seen black and ethnic newsreaders on our TV screens – Trevor McDonald always reminded me of my dad as a kid growing up in Reading in the 1980s.

Then, there was Moira Stewart, and now the new class of Dharshini David or Gillian Joseph on Sky News. 

Even the odd ITV drama such as ‘The Ice Cream Girls’ use a black female character in one of the central roles, along with Idris Elba in the main role in ‘Luther’.  But…where are their black friends and family?  These dramas are few and far between.  Not exactly representative.

As Henry pointed out, the slow progress in reflecting our diverse culture on screen must in part be due to the relatively low number of BAME staff behind the screen (5.4% and declining!).

Meanwhile, what about the ads?

Thankfully, we have moved on considerably since the days of advertising as depicted in ‘Mad Men’.

Black and ethnic minority families are portrayed in a number of fast-moving consumer goods and retailer adverts on our screens and in magazines, but there are still a number of sectors where there is a noticeable absence of BAME representation.

Luxury brands still seem to veer away from using BAME models in their ads, unless a darker skin colour helps enhance a product benefit – for example contrasting a brightly coloured handbag or piece of statement jewellery.  Why?

I suspect that the luxury sector carries a misconception that ‘black’ is not aspirational.

So, it's not seen as aspirational for a white person viewing that ad or even a black person viewing it – in other words, there's still a perception that white is somehow better than black.

Of course, this assumption is incorrect and dangerous – and as a black woman who works in advertising, I hope I can be part of the solution in educating these brands differently.

I know that diverse teams are more creative, productive and create a culture that people want to be part of.  Diverse teams, in terms of gender and race, are successful teams that generate revenue.  Yet, the percentage of women and BAME groups on boards and in senior management roles is not good enough. To say that we're hard to find, or not qualified is nonsense.

Nepotism and laziness mean that senior positions go to the same sorts of people.

Do I believe in quotas?  No.

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