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Wednesday 13 March 2024

Newsletter, March 2024











DELHI, March 2024
Index of this Newsletter


INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC. 


1. Climate-smart agriculture to deal with climate change while improving productivity of farmers
2. G33 Calls for Permanent Solution to Food Security
3. IIT Madras records a 92% jump in Indian patents granted during 2023.
4. Our Cities Must Start This Virtuous Cycle
5. Poverty Rate in FY23 Falls to 4.5-5%, Rural India Sees Bigger Fall


– AGRICULTURE, FISHING & RURAL DEVELOPMENT


6. Poorest Indians See Spending Grow at a Faster Clip
7. Fruit for Thought: Farmers Turn to Cultivation of Exotic Varieties
8. Empowering sustainability: Crucial role of electrification in India's cooking revolution
9. Nearly 5000 farmer/producer organizations registered on ONDC platform:Agriculture ministry
10. CSC 2.0: Entrepreneurship model to empower rural areas with Digital India services & skills


– INDUSTRY, MANUFACTURE


11. India Ranks No 1, 2 & 3 in Ikea’s Priority Mkt List for Investment
12. Skoda to Tweak Products, Mkt Strategy Ahead of Compact SUV Launch
13. PVC: Need to quadruple capacity to support India’s economic growth to $10 trillion by 2030
14. Legacy chips:Through innovation, global collaborations India to counter China’s dominance
15. Mandaviya inaugurates 40 new facilities to manufacture bulk drugs, medical devices


– SERVICES (IT, R&D, Tourism, Healthcare, etc.) 


16. GCCs face talent exodus amid rising competition
17. Indo-Dutch semiconductor opportunities: Collaboration for transforming India into talent powerhouse
18. Undersea cable linking Kochi & Lakshadweep is major milestone in digital inclusion: President & CEO NEC India
19. Fly91: Can India’s new regional airline chart a different course from its predecessors?
20. On the fast track: ITC Hotels opens 24 properties in 2 years; to foray abroad


INDIA & THE WORLD 

21. Grow in India, grow for the world: Sowing seeds of digital transformation in agriculture
22. How to Get Koh-i-noor Back
23. Protect Farmers, Fishermen in Developing Nations: India
24. Flipkart UPI Handle: Flipkart launches its UPI handle to boost India's digital economy vision
25. Changing healthcare landscape:Growth of top-tier wellness hospitals & medical treatments


* * *

DELHI, MARCH 2024

NEWSLETTER, MARCH 2024



INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC. 



1. Climate-smart agriculture to deal with climate change while improving productivity of farmers 
ET Gov. 9 Mar. 2024 

"CSA is a holistic and multi-dimensional approach that integrates the climate lens to tackle food insecurity, increase agricultural productivity, and promote sustainable agriculture. CSA does not necessarily imply the introduction of new techniques or technologies but puts forward a suite of simple and smart agricultural practices to boost productivity, improve resilience, and reduce GHG emissions by keeping sustainability at its core." 

Agriculture stands at a double whammy of climate change. It contributes to 19–29% of total greenhouse gas (GHG) emissions but also bears the brunt of climate change in terms of decreased productivity. 

The climate crisis is real and set to intensify every passing minute if pre-emptive measures are not taken. Agriculture stands at a double whammy of climate change. It contributes to 19–29% of total greenhouse gas (GHG) emissions but also bears the brunt of climate change in terms of decreased productivity. 

It is estimated that the productivity of most crops will decrease by 10-40% by 2100 due to increases in temperature, rainfall variability, and a decrease in irrigation water. 

The strategic importance of a sector like agriculture in India is conclusive. It contributes nearly 18% to the GDP and employs over ~46% of the workforce. Over 89.4% of the farmers in India are small and marginal farmers who own less than two hectares of land and many of them even live below the poverty line. 

They stand particularly vulnerable to the adverse impacts of climate change in the form of higher cost of production, reduced income, loss of livelihood, increased incidence of crop failure due to unforeseen events and pest attacks, and shorter growing periods. A McKinsey research estimates that nearly 80 percent of all smallholder farmers in India could be affected by at least one climate hazard by 2050. 

Today, India faces multifaceted challenges in the form of food insecurity, lower agricultural productivity, and climate change. For India to achieve the net-zero commitment by 2070, it will require farmers to transition to less carbon-intensive agriculture. Climate-smart agriculture (CSA) stands as the most viable contestant to solve the conundrum. 

CSA is a holistic and multi-dimensional approach that integrates the climate lens to tackle food insecurity, increase agricultural productivity, and promote sustainable agriculture. CSA does not necessarily imply the introduction of new techniques or technologies but puts forward a suite of simple and smart agricultural practices to boost productivity, improve resilience, and reduce GHG emissions by keeping sustainability at its core. 

Some simple yet effective techniques that are a good starting point for small and marginal farmers to become climate-smart growers are: 

Soil smart: Integrate agroforestry into agriculture, grow cover crops, undertake vermicomposting and mulching, include legumes in the crop mix to reduce external nitrogen application, ensure regular soil health checks, and guide usage of fertilizers based on soil test results and by using leaf color charts to improve soil fertility, prevent nutrient runoff and retain organic soil cover. 
Water smart: Transition or compliment techniques like drip or sprinkler irrigation, rainwater harvesting, precision farming, micro-irrigation, and use of solar-powered irrigation to optimize water efficiency and harvest more crops per drop. For instance, Oorja solar-powered irrigation, milling, and cooling services to smallholder farmers on a pay-per-use basis. 
Crop smart: Practice crop diversification, and crop rotation, and use climate-resilient varieties (i.e. heat, flood, drought, and pest resistance based on need) of seeds to reduce the chance of crop failure during adverse climate events. The selection of seed variety becomes extremely critical for rice cultivators as rice cultivation is India's second biggest source of agriculture-based emissions. 
Pest smart: Optimize the use of fertilizers based on a customized combination of biological, cultural, and chemical methods, invest in pest-resistant seedlings, and maximize the use of manual weeding to reduce pest-based loss without compromising the quality. 
Livestock smart: Use better breeds of livestock, ensure continuous monitoring, and timely vaccination, practice rotational grazing, and maintain quality fodder to reduce methane emissions, increase productivity, and prevent disease outbreaks. 
Process smart: Optimize the farm processes through the synergy of the latest tools with traditional tools, minimize on-farm loss through better storage and packaging, and utilize crop waste for productive purposes such as the production of biogas, composting, and fodder/animal feed. 

However, the adoption of CSA remains low in India. To drive mass uptake of CSA, we need efforts at the macro, meso, and micro levels: 

Macro (at the government and development institutions level) 
Incentives in the form of subsidies, Minimum Support Prices (MSPs), and government schemes need to be re-calibrated to encourage farmers to adopt CSA. 

Networks of on-ground organizations working closely with farmers like FPOs, KVKs, NGOs, and MFIs must be leveraged to spread awareness and impart training to drive the benefits of CSA. Adequate investment in infrastructure and collaboration with private agencies for research and innovation is crucial to making CSA mainstream in the farming parlance. 

Meso (Private sector) 
The private sector should play a big role in integrating technology with agriculture. Technologies like artificial intelligence, the Internet of Things (IoT), and IVR must be harnessed to improve agricultural productivity sustainably. 

Financial service providers including loan providers and insurance companies must capitalize on the opportunity and design loans and insurance products to mitigate the impacts of climate change and promote CSA. 

Micro (Farmer level) 
CSA can be successful in its true sense when farmers are well equipped with the trust, skills, and knowledge to practice CSA on farms. To achieve this, capacity-building sessions for farmers via training, workshops, and live demonstrations must be implemented. 

In a nutshell, climate-smart agriculture offers a promising pathway to mitigate and adapt to climate change. It has an immersive potential to revolutionize the agricultural landscape of India. Now is the right time to build a sustainable foundation of an agriculture ecosystem that integrates a climate lens and mitigates climate risks. 

(The first author is IAS officer in Uttar Pradesh government; Anjali Lalchandani is the co-author, she is working as International Development Consultant with MicroSave Consulting; Views are personal) 


2. G33 Calls for Permanent Solution to Food Security 
ET, 26 Feb. 2024 

New Delhi: Around 50 countries including India (G33 group) on Sunday called for an outcome on public stockholding for food security purposes at the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) based on the joint proposal of about 80 members, including those from the African Group and the ACP, submitted earlier. 

Officials said that at a meeting a day before the four-day MC13, India emphasised that food security is national security and that it is a non-trade concern as per the Agreement on Agriculture. 

“India urged all the members to continue the strong cohesion of the group,” said an official. The meeting was coordinated by Indonesia. 

“The vast majority of the G-33 Members recognize the critical importance of public stockholding for food security purposes for developing country members… in meeting our food and livelihood security, as well as our rural development imperative, including supporting low income or resource poor producers,” the G33 group said in a ministerial statement. 

They also insisted that the WTO deliver a “meaningful outcome” on agriculture at MC13 that begins Monday. 

The G33 has long been seeking the permanent solution to the public stockholding programmes for food security purposes for developing countries, including the LDCs. 

A permanent solution is crucial to avoid legal concerns for developing countries including India about higher subsidies for stockholding programmes such as the minimum support price which is subject to a ceiling of 10% of the value of production. While such programmes are covered by a peace clause, the clause doesn’t cover schemes rolled out post 2013 and are subject to onerous conditions. 


3. IIT Madras records a 92% jump in Indian patents granted during 2023. 
IBEF, Feb. 22, 2024 

IIT Madras saw a 92% increase in Indian patents granted in 2023, reaching 300 from 156 in 2022. International patents filed, including those under the PCT, rose to 105 in 2023 from 58 in the prior year. 221 patents were filed by December 2023, with about 2,550 IP applications submitted since the institute's inception. The director praised the faculty and students for their research efforts, emphasizing the importance of protecting ideas for India's advancement. The institute focuses on technology domains like wireless networks, robotics, clean energy, and biomedical applications. 

IIT Maras has a rich history of patent filings, with milestones like surpassing 1,000 IP applications in 2016 and reaching 2,500 in 2023. The Office of Industrial Consultancy and Sponsored Research (ICSR) supports IP coordination and technology transfer researchers. Researchers work in diverse areas, such as advanced materials, aerospace applications, and additive manufacturing technology. The institute's efforts are geared towards fostering innovation and protecting intellectual property for India's progress. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same. 


4. Our Cities Must Start This Virtuous Cycle 
ET, 4 Mar. 2024 

Last week, former Intel India chief Avtar Saini died after a speeding car struck him as he was cycling in Navi Mumbai. The tragedy underscores a prime reason why those willing to shift to cycling in our cities do not. 

Last week, former Intel India chief Avtar Saini died after a speeding car struck him as he was cycling in Navi Mumbai. The tragedy underscores a prime reason why those willing to shift to cycling in our cities do not. Saini chose to cycle even though he could have used a car because opting to pedal is a healthy, environment-friendly choice for a growing number of affluent Indians. Safety is critical to ensure such people opt to trade in their cars for bicycles for regular use. 

Promoting the use of helmets and lights while cycling in our cities is important. But ensuring safe bicycle use requires much more, including improved traffic and roads management. This must be a priority for urban authorities for whom cycling still remains overwhelmingly an economic necessity and not a matter of choice. Making roads safe for bicyclists, the most vulnerable road-users, will mean safer roads for all. Investing in cycle-only lanes and a proactive push for motorised vehicle-users to learn and maintain protocols will improve the safety quotient of our roads. 

Cycling ranks high up in sustainable and healthy mobility options. Mission LiFE, GoI’s flagship sustainability intervention, even lists bicycling as part of planet-friendly lifestyles. Professionals commuting on cycles is not just a ‘first world’ trend. Neither should cyclists be seen as being confined to blue-collar workers and ‘dudhwalas’. India has among the highest numbers of road accidents globally. This requires reimagining and redesigning roads with dedicated tracks for cyclists, better use of traffic lights, ensuring non-cyclists, particularly of motorised 2-wheelers, using bicycle tracks are penalised. Not reducing risk will mean that those who want to opt for cycles can’t. 


5. Poverty Rate in FY23 Falls to 4.5-5%, Rural India Sees Bigger Fall 
ET, 28 Feb. 2024 

India’s poverty rate stood at 4.5-5% in 2022-23, a sharp decline from a decade earlier, an SBI Research report said on Tuesday. Rural poverty declined to 7.2% in 2022-23 from 25.7% in 2011-12 and urban poverty fell to 4.6% from 13.7% during the same period, according to the new Household Consumption Expenditure Survey (HCES) data, it said. 

Agencies 

India’s poverty rate stood at 4.5-5% in 2022-23, a sharp decline from a decade earlier, an SBI Research report said on Tuesday. Rural poverty declined to 7.2% in 2022-23 from 25.7% in 2011-12 and urban poverty fell to 4.6% from 13.7% during the same period, according to the new Household Consumption Expenditure Survey (HCES) data, it said. 

“Rural poverty has thus staged a significant 440-basis point decline since 2018-19 and urban poverty a 170-basis point decline post pandemic,” the report said, observing that this indicated that many government programmes for those at the bottom of the pyramid are having a significant salutary impact on rural livelihood. 

SBI researchers estimated the poverty line, or the basic level of consumption required, at Rs1,622 per head for rural areas and at Rs1,929 for urban areas. The formula is derived by using the recommendations of an expert group headed by Suresh Tendulkar, based on which a Rs816 poverty line for rural and Rs1,000 for urban areas was determined for 2011-12. “Starting with 2011-12 poverty line estimate of Rs816 in rural area and Rs1,000 in urban area, the new poverty line was adjusted for decadal inflation and imputation factor derived from NSSO report,” SBI researchers said. 

India has not had a revision to poverty line calculations since 2014, when another expert group chaired by former RBI governor C Rangarajan had submitted its report. According to a World Bank paper, India’s poverty rate stood at 11.6% for rural areas and 6.3% for urban areas in 2018-19. 

The government released the Household Consumption Expenditure Survey for 2022-23 on Saturday after over a decade, as the results of 2017-18 survey were junked citing data inconsistencies. The new survey indicated the gap between rural and urban consumption narrowing and spending inequality among the poorest and richest households shrinking. 


- Agriculture, Fishing and Rural Development 


6. Poorest Indians See Spending Grow at a Faster Clip 
ET, 26 Feb. 2024 

India’s poorest households and those at the bottom of socio-economic standing have seen their per-capita spending grow faster than better-off households in the last decade, although on a lower base, the Household Consumption Expenditure Survey (HCES) 2022-23 showed. 

Reuters 

India’s poorest households and those at the bottom of socio-economic standing have seen their per-capita spending grow faster than better-off households in the last decade, although on a lower base, the Household Consumption Expenditure Survey (HCES) 2022-23 showed. 

The HCES also showed discretionary items now account for a larger share of household spending than in 2011-12 when the survey was last released, a sign of reducing poverty. Delivery of social welfare schemes has improved with the bottom-of-the-pyramid households deriving more from such schemes. 

The survey results would form the basis of calculating inflation, poverty and growth estimates, which would help inform other policy decisions. While monthly per capita spending in rural areas has grown faster than urban monthly expenditure, narrowing the gap between the two, spending inequality between different income categories has also reduced in relative terms, an ET analysis of the survey found. 

The average rural spending jumped 2.64 times between 2011-12 and 2022-23 with the bottom 50% of the households increasing their spending at a slightly faster clip, by 2.69 times compared with 2.63 times growth for the top 50%. 

In urban areas, the bottom 50% of households witnessed 2.77 times rise in spending compared with 2.41 times increase for the top 50% of households. 

The relative spending gap between top 5% households and bottom 5% households in urban areas reduced to 10.4 times in 2022-23 from 14.7 times in 2011-12 while in rural areas, this gap came down to 7.6 times in 2022-23 from 8.6 times in 2011-12. Households in the middle of the spending bracket closed the gap much faster in rural areas. 

The bottom 5% of households survived at ₹46 per day in rural areas and ₹67 per day in urban centres. 

Analysis further showed that spending of scheduled caste, scheduled tribes and other backward classes grew faster than the rest in both urban and rural areas. 

Similarly, spending of casual labourers and self-employed went up more than those of regular salaried workers in urban areas. 

In the case of rural areas, casual labourers and self-employed people spent more than regular wage earners. However, those self-employed in non-agricultural areas witnessed a faster increase in spending than self-employed people in agriculture. 

Data indicates that the government’s delivery of social welfare schemes made a difference in reducing spending inequality. 

The survey found that consumption of lower income groups was even higher if one imputes the value of items that households receive for free via social welfare programmes like ration and non-food items like laptops, mobile, bicycle, motorcycle, school uniform or footwear, besides home-grown stock or goods exchanged in barter. 

Imputation does not include health and education services provided by the government. 

The average spending of the bottom 10% in rural areas increased by nearly 5% after accounting for social welfare programmes, home-grown stock and barter exchanges, whereas the difference at the top was a mere 1%. 

In the case of urban areas, the difference in spending post imputation was 4% for the bottom 10% and 0.2% for the top 10%. 

This was also evident for social categories where the scheduled castes, scheduled tribes and OBCs derived more from social welfare programmes. 

The government is conducting two back-to-back surveys to produce robust results. The second survey is likely to be completed by the second half of the year. 


7. Fruit for Thought: Farmers Turn to Cultivation of Exotic Varieties 
ET, 8 Mar. 2024 

Indian farmers are rapidly adopting the cultivation of exotic and premium fruits like avocados, blueberries, dragon fruit, and kiwis, fuelled by their growing preference in the domestic market and burgeoning exports. 

These fruits offer up to 50% higher returns than other local fruits, according to experts. “Over the last five years, farmers and entrepreneurs have realized the potential for exotic fruits and new varieties for both domestic and international markets,” said Purnima Khandelwal, chief executive of InI Farms, a large exporter of horticulture products. 

Khandelwal said this was manifested in initiatives to grow dragon fruit, seedless watermelon, blueberries, red grapes, cantaloupes, avocado and kiwi. 

Recognising the market potential, the Ministry of Agriculture and Farmers’ Welfare has identified ten globally popular exotic fruit crops of commercial importance - avocado, blueberry, dragon fruit, figs, kiwi, mangosteen, persimmon, passion fruits, rambutans and strawberries, and directed state horticulture departments to expand the area under cultivation of these crops. 

In 2023, the total area under cultivation for dragon fruit stood at 3,000 hectares. With increased demand, the government expects this to rise to up to 50,000 hectares in five years under the Mission for Integrated Development of Horticulture (MIDH) program. The total area under kiwi fruit cultivation in India is 5,000 hectares, yielding 16,000 MT production in FY2023, compared to negligible production in 2010, agriculture ministry data showed. 

Producers and marketers for exotic fruits in India value the domestic market at an estimated₹3,000 crores with core demand emerging from the top four metros, state capitals and tourist spots. 

“With so many tourists around, exotic fruits are really popular in tourist spots such as Goa. Delhi, Mumbai are also among the biggest consumers of these items,” Harshit Godha, founder of Indo Israel Avocado, which helps farmers grow avocados. 

Experts say India’s varied agro-climatic conditions are a major factor driving local production of exotic items. “(With such varied agro-climatic conditions) Northeast is growing kiwi, Himachal Pradesh is growing new varieties of apple, Nashik is growing exotic grapes, Solapur is growing melons, Madhya Pradesh is growing berries, and Andhra Pradesh is growing avocado,” Khandelwal said. 

Increased production is also propelling exports, albeit at a lower base. India had been exporting primarily to neighbouring countries but has now found markets in the UAE, Austria, and Canada for some of these fruits India’s kiwi exports jumped to 528 tonnes in 2023 from just 0.35 tonnes six years ago. 

Indo Israel Avocado, which imports avocado plants for farmers, has seen a huge demand for fruit. “In the last three years, our total imports were 10,000 avocado plants. But in 2024 (calendar year), just the first consignment was 10,000 avocado plants,” said Godha. 


8. Empowering sustainability: Crucial role of electrification in India's cooking revolution 
ET Gov. 28 Feb. 2024 

With government initiatives and industry support, India can revolutionize cooking practices, positively impacting millions of lives in our journey towards a sustainable and cleaner future. 

The electrification of cooking plays a pivotal role in advancing women's empowerment by alleviating the burdens associated with traditional cooking practices. 

In the midst of technological advancements, a staggering 2.6 billion people worldwide lack access to clean cooking, with approximately 440 million Indians relying on inefficient stoves and biomass for their cooking needs. 

According to WHO data for the year 2021, around 30% of India’s Population primary cooking fuel depends on traditional firewood, crop residue and biomass, leading to environmental and health consequences. 

The electrification of cooking plays a pivotal role in advancing women's empowerment by alleviating the burdens associated with traditional cooking practices. In many households, women bear the responsibility of collecting firewood and managing traditional stoves, tasks that consume significant time and energy. The shift towards electric cooking technologies, such as induction stoves, not only reduces the time spent on these labour-intensive activities but also contributes to improved health outcomes by minimizing exposure to indoor air pollution. 

The repercussions are stark, with over 0.8 million premature deaths in India attributed to indoor air pollution resulting from cooking practices, as highlighted by the World health Organization. In pursuit of achieving Net Zero emissions by 2070, the electrification of the cooking sector emerges as a pivotal strategy to significantly curb emissions. 

The buildings sector plays a key role in accelerating the transition towards a zero-carbon, resilient, and sustainable future in India. Cooking is one of the energy intensive segments in the overall energy consumption in building. LPG is primarily a fossil fuel used for cooking however, it poses emissions both during production & consumption. 

India's LPG import dependence jumped to 64% in 2022-23 and increase in dependency on LPG imports could impact energy security and exacerbate the problem of emissions, undermining the efforts to achieve Sustainable Development Goal 7, which is aimed to increase access to clean cooking fuels to all. 

At COP28, Africa and Asia, with a combined population of 2.3 billion still using biomass for cooking, expressed their commitment to the global journey of electrifying cooking. Recognizing the health and environmental issues, there's a shared willingness to transition to electric cooking. This shift not only tackles challenges but also contributes to a just energy transition for achieving net-zero emissions, aligning with global sustainability goals. 

These cookstoves, offering a cost advantage of 25-30% over traditional methods, promise energy savings and cost-effective cooking solutions, reducing environmental impact for cleaner air and improved health. 

Induction Cooking Solutions are gaining prominence over LPG, traditional biomass-based systems for their transformative impact on health, livelihoods, gender empowerment, and environmental protection. Numerous countries, philanthropic organizations, impact investors, and private entities actively engage in launching initiatives to promote these clean cooking solutions. 

Efficient cooking methods, exemplified by induction cook stoves, not only save time and effort but also significantly improve air quality in kitchens by emitting no harmful pollutants. This shift towards clean cooking at the household level contributes to a more sustainable and resilient energy system, particularly in rural and semi-urban areas. However, the reliability and quality of electricity supply in India remain challenging hurdles. 

According to the initial assessment in a few villages across five districts in Uttar Pradesh, the public viewpoint on electrifying cooking is overwhelmingly positive. Respondents highlighted the time efficiency of induction methods compared to traditional cooking, citing reduced stove preparation time and the elimination of the need for collecting firewood and crop residue. 

Additionally, households expressed the cost-effectiveness of induction-based cooking in comparison to LPG, with a willingness to shift from traditional methods. Furthermore, the majority of households are not only aware of induction cook-stoves but are also enthusiastic about incorporating them into their cooking routines. 

Nevertheless, the Government of India is committed to electrification of Cooking. Recently, Union Power Minister Mr. R K Singh announced a transformative initiative by EESL, aiming to distribute 2 million induction cook stoves across the nation. 

These cookstoves, offering a cost advantage of 25-30% over traditional methods, promise energy savings and cost-effective cooking solutions, reducing environmental impact for cleaner air and improved health. EESL's partnership with state designated agencies and organizations like International Copper Association India, Modern Energy Cooking Services (MECS) for large-scale induction cooktop deployment anticipates accelerated adoption in Indian kitchens. 

As we chart our course towards the Net Zero goal, the electrification of induction cooking solutions presents a transformative opportunity for clean cooking in India. With its blend of affordability, efficiency, and minimal environmental impact. Electrification of cooking using inductions as a comprehensive solution not only enhances health and reduces carbon emissions but also contributes to a greener and more sustainable future. 

With government initiatives and industry support, the country can revolutionize cooking practices, positively impacting millions of lives in our journey towards a sustainable and cleaner future. 

(The author is Managing Director, International Copper Association, India; Views are personal) 


9. Nearly 5000 farmer/producer organizations registered on ONDC platform:Agriculture ministry 
ET Gov. 2 Mar. 2024 

The move aims to empower FPOs with direct access to digital marketing, online payment, business-to-business and business-to-consumer transactions. 

Almost 5,000 out of 8,000 registered farmer producer organizations (FPOs) have been onboarded on Open Network for Digital Commerce (ONDC) portal for selling the produce online to consumers across the country. The onboarding of FPOs on ONDC to reach out to their buyers in any part of the country is in line with the Central government objective of providing growers with better market access, the Ministry of Agriculture & Farmers Welfare said in a statement on Friday. 

The move aims to empower FPOs with direct access to digital marketing, online payment, business-to-business and business-to-consumer transactions. Over 8,000 FPOs have been registered against government target of 10,000 under a new Central Sector Scheme titled "Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs)" launched in 2020 with a budgetary provision of ₹6,865 crore. 

Aggregation of small, marginal and landless farmers into FPOs helps enhance economic strength and market linkages of farmers for enhancing their income. FPOs facilitate farmers with access to improved technology, credit, better input and more markets to incentivize them to produce better quality commodity, the ministry said. 

FPOs are provided with financial assistance up to ₹18 lakh each for a period of three years. In addition to this, provision has been made for matching equity grant up to ₹2,000 per farmer member of FPO with a limit of ₹15 lakh per FPO and a credit guarantee facility up to ₹2 crore of project loan per FPO from eligible lending institution to ensure institutional credit accessibility to FPOs. 

So far, credit guarantee has been issued to 1,101 FPOs worth guaranted coverage of ₹246 crore covering more than 10.2 lakh farmers. Matching equity grant amounting to ₹145.1 crore has been transferred directly to the bank account of the eligible 3,187 FPOs, the ministry said. 

Formation and promotion of FPOs is the first step for converting Krishi into Atmanirbhar Krishi. The initiative enhances cost effective production and productivity and higher net incomes to the member of the FPO. It also improves rural economy and create job opportunities for rural youths in villages itself. This was the major step towards improving farmers’ income substantially, it said. 

FPOs are to be developed in produce clusters, wherein agricultural and horticultural produces are grown/ cultivated for leveraging economies of scale and improving market access for members. “One District One Product” cluster to promote specialization and better processing, marketing, branding and export. Further agriculture value chain organizations forming FPOs and facilitating 60% of market linkages for members produce. 

The key objectives of the scheme 

To provide holistic and broad-based supportive ecosystem to form new 10,000 FPOs to facilitate development of and sustainable income-oriented farming and for overall socio-economic development and wellbeing of agrarian communities. 

To enhance productivity through efficient, cost-effective and sustainable resource use and realize higher returns through better liquidity and market linkages for their produce and become sustainable through collective action. 

To provide handholding and support to new FPOs up to five years from the year of creation in all aspects of management of FPO, inputs, production, processing and value addition, market linkages, credit linkages and use of technology, etc. 

To provide effective capacity building to FPOs to develop agriculture-entrepreneurship skills to become economically viable and self-sustaining beyond the period of support from government. 

FPOs can be registered either under Part IXA of Companies Act or under Co-operative Societies, it added. 


10. CSC 2.0: Entrepreneurship model to empower rural areas with Digital India services & skills 
ET Gov. 02 Mar. 2024 

"The CSC Grameen eStores are an e-commerce enterprise engaged in ensuring availability of essential goods and services in rural areas. More than 4 lakh CSC Grameen eStores are playing a major role in serving the people in the rural areas." 

"In the time of Covid, the work of spreading awareness of the pandemic and facilitating the registration for the vaccines in the rural areas was done in a major way by the CSCs": Sanjay Kumar Rakesh 

The growth of CSCs in the country has been phenomenal. In May 2014, there were 83,950 CSCs, and as of January 2024, the number of functional CSCs is 5,96,247. 

Over 4,73,000 CSCs are located in rural areas where they provide vital e-governance, e-health, e-commerce and skill development related services. These CSCs are being run by entrepreneurs—known as Village Level Entrepreneurs (VLEs). The country has over five and a half million VLEs, including approximately 70,000 female VLEs. These CSCs are leading to significant employment generation. Approximately 4 people are employed in every CSC–this implies that the CSCs are providing direct or indirect employment to over 2.2 million people most of whom reside in the rural areas. 

Sanjay Kumar Rakesh, Managing Director & CEO, CSC e-Governance Services India Ltd, in conversation with Anoop Verma, Editor (Desk), ETGovernment, describes the critical role that the CSCs are providing in the country under the CSC 2.0 Scheme, which was launched in 2015. 

Edited excerpts: 

In 2015, the government launched the CSC 2.0 scheme to broaden the scope of the services being provided by the CSCs and to expand their reach in all Gram Panchayats across the country. How has the nature and scope of CSCs expanded after the launch of the CSC 2.0 scheme? 
The CSC scheme was approved by the Government of India in 2006, with the vision of establishing 1,00,000 rural kiosks in the country. CSC SPV was created in 2009 to implement the CSC scheme of providing services in the areas of e-governance, education, health, telemedicine and entertainment. In 2015, it was decided to broaden the scope of CSC services and CSC 2.0 was approved by the Government. Under CSC 2.0, there is a direct connection between the CSC SPV and the VLEs (Village Level Entrepreneurs). Under this scheme, there is no provision for viability gap funding, the CSC SPV and the VLEs are expected to become viable by the merit of the services that they provide. It was decided to have one CSC in every panchayat. We have set up CSC centres in almost every panchayat—between 3000 to 4000 panchayats are left because of internet connectivity related issues. A network of 5.4 lakh VLEs, of which 4.35 lakh are in Gram Panchayats, are actively providing various online public utility and financial services to citizens. 

Recently in Lucknow, you signed a MoU with SIDBI to develop Swavalamban Connect Kendras in Bihar and Jharkhand. These Kendras are expected to help entrepreneurs to become job creators. How do you expect to achieve these objectives? 

Promoting entrepreneurship is something that is natural to the CSCs. This is because the CSCs are being run by lakhs of entrepreneurs, known as Village Level Entrepreneurs (VLEs). Swavalamban Connect Kendras (SCKs) in Bihar and Jharkhand are aimed at serving as one-stop centers to guide aspiring entrepreneurs to become job creators through awareness, mapping gaps, skill connect, create localized project profiles, credit connect, post-handholding support like market connect. SIDBI is planning to open 35 such centres in Bihar and 16 in Jharkhand. The SCKs will organize awareness campaigns, guide aspirants in setting up their businesses by helping them in raising funds. The idea is to nurture local talent and facilitate economic growth. In this project the content and resources will be from SIDBI; the CSCs will provide the trained manpower support. 

The Department of Education has launched the APAAR (Automated Permanent Academic Account Registry), whose aim is to enable ‘One Nation, One Student ID’. The CSCs are going to play a major role in implementing APAAR in remote villages. How does the system work and what kind of response are you expecting? 

APAAR is an ambitious project of the Ministry of Education. This project entails that as soon as the child gets enrolled in an institution, his unique ID should be generated and all his credentials should be linked to the same ID. When the student passes 10th, 12th, or gets a college degree, or moves to a different institution in another city or town, he does not have to take all his documents with him. He can quote his unique APAAR ID. Any institution or employer can verify his credentials through a single ID. This system will curb the problem of fake certificates and credentials that we face today. We at CSC are proud that we are part of this ambitious project of the Ministry of Education. The core systems have been developed by the Education Ministry, our mandate is to help in the roll out of the systems by enabling the students in the rural areas to generate their APAAR ID. 

It has been reported that the CSCs are developing synergy with Government e-Marketplace (GeM) and ONDC. What kind of outcomes are you expecting from this synergy? 

The CSC Grameen eStores are an e-commerce enterprise engaged in ensuring the availability of essential goods and services in rural areas. More than 4 lakh CSC Grameen eStores are playing a major role in serving the people in the rural areas. We are now trying to develop a synergy between the Grameen eStores and GeM and ONDC. Our VLEs are consumers as well as sellers. They can buy or sell through the ONDC system. The Government e-Marketplace is for government customers only. Our VLEs contribute by onboarding the Panchayats and the Primary Agricultural Credit Societies (PACS) to the GeM platform, and by teaching them how to participate in bids. The Grameen eStores are also promoting ‘Vocal for Local’ by partnering with local manufacturers like SHGs, farmers and MSMEs. 

The initiative for enabling the Primary Agricultural Credit Societies (PACS) to provide CSC services was launched by the Home Minister in July 2023. What kind of impact is this initiative having on the Cooperative movement? Will it lead to modernization of the PACS and the achievement of the goals of Digital India? 

Till the launch of this initiative, the Primary Agricultural Credit Societies were providing only farm related services and support to the farmers. Mainly, they were providing fertilisers, loans, and other such inputs. The CSCs have several other services, including critical digital services, that they can provide to the farmers. If the farmer wants to have his Aahaar made, he has to approach a CSC centre. If he wants his income certificate or any other certificate made, he has to approach a CSC centre. With the PACS becoming CSC centres, the farmers are able to get a whole lot of services in the same office. We have tie-ups with several FPOs and banks–this enables us to provide essential supplies and loans to the farmers. 

In Covid lockdown period what kind of services did the CSCs provide? 

In the time of Covid, CSC was declared as an essential service. If anyone needed money, they could approach the local CSC. The work of spreading awareness of the pandemic and facilitating the registration for the vaccines was done by the CSCs. The initiative of Grameen eStore was launched during the lockdown period. The government realised that the urban areas could avail home delivery of goods and services through e-commerce companies, but such facilities were unavailable in much of rural India. So we started the Grameen eStore through which the VLEs supply goods and services to the people living in their area of operations. CSC Telemedicine emerged as a front-line weapon against the Covid-19 pandemic. People in rural areas who could not travel to the hospital were being supported by CSC Telemedicine. 


- Industry and Manufacture 


11. India Ranks No 1, 2 & 3 in Ikea’s Priority Mkt List for Investment 
ET, 28 Feb. 2024 

India is ranked “number one, two and three” in Ikea’s priority markets list for investment, said Jesper Brodin, global chief executive officer, Ingka Group, adding that it’s tough to keep pace with the country’s digital and physical infrastructure development. Ingka Group operates most Ikea stores as a franchisee. 

India is ranked “number one, two and three” in Ikea’s priority markets list for investment, said Jesper Brodin, global chief executive officer, Ingka Group, adding that it’s tough to keep pace with the country’s digital and physical infrastructure development. Ingka Group operates most Ikea stores as a franchisee. 

“It has been incredibly interesting to see the speed of development in the last 5-10 years,” he told ET in an interview. “India has moved from a country catching up to a country that in many aspects are leaders in digital.” 

He pointed to India’s leadership position in terms of growth. “We are deeply impressed by the economic progression, which if you compare to big countries, India is the leader in economic growth and development right now,” he said. “And the outlook is quite optimistic.” 

The world’s biggest furniture and home products retailer, known for its ready-to-assemble products, started sourcing from India in the 1980s. It has more than five dozen suppliers in the country, most of them in textiles. Over a decade ago, the erstwhile Foreign Investment Promotion Board (FIPB) had approved Ikea's ₹10,500 crore investment proposal to open 25 stores — each large enough to fit about four football fields — in the country by 2025. It has since opened three large-format stores in Hyderabad, Mumbai and Bengaluru and two smaller city stores. It aims to open bigger stores in Gurgaon and Noida in the National Capital Region soon. It has also expanded ecommerce services in Maharashtra, Karnataka, Telangana, Andhra Pradesh and Gujarat and is targeting online operations in Delhi this year. 

According to IDBI Capital, the domestic furniture market is estimated at $32 billion and expected to reach $38 billion by 2026. The growing demand for residential and commercial infrastructure development, fuelled by a burgeoning middle-class segment, is also aiding the country’s furniture market. 

Brodin, who once worked as an assistant for Ikea founder Ingvar Kamprad, said India is the biggest “expansion adventure” in the group currently. 

“When we think about India, we think about size,” he said. “In terms of investment priorities, India ranks one, two and three. We have consciously decided we cannot financially afford to be in the startup phase in too many places. But India is the top priority for us now.” 

The Indian market is a good match for Ikea's global vision to serve more people with big needs at affordable prices. 

“India is the ultimate market for us with all these people who have thin wallets, so many needs, big family situations,” he said. “So, for us to succeed in India I think is the most exciting expansion project that we have.” 

The Swedish retailer said it has cut costs after raw material prices softened, helping Ikea lower prices on several products by about 20% both in India as well as globally, which will in turn boost sales volumes. 

India is the world’s fifth-largest producer and the fourth-largest consumer of furniture. Still, per-capita furniture consumption is $5, significantly lower than other countries including China’s $237 and Vietnam’s $330, offering significant potential for growth. About three-fourths of India’s furniture industry is controlled by standalone stores and neighbourhood carpenters, although about half a dozen ecommerce players, including Flipkart and Amazon, had entered the market in the recent past. 

The company said it is in dialogue with the Indian government to set up quality standards to make safer and standardised products in terms of ingredients and materials used, which will help create a level playing field. 

“We have been invited to be part of the dialogue — how do we find a pathway which is right for consumers, right for India to claim its space on the market, but also helping the government to reach the $2 trillion export target by actually making sure that the standards are exportable?” said Brodin, who started at Ikea in 1995 as a purchase manager and became Ingka Group CEO in 2017. 

Ingka is the largest global franchisee of Ikea, accounting for nearly 90% of its sales. The brand is owned by a separate company, Inter IKEA, which makes all its products. 


12. Skoda to Tweak Products, Mkt Strategy Ahead of Compact SUV Launch 
ET, 28 Feb. 2024 

As Skoda Auto India prepares to enter the high volume, competitive compact SUV market in H1 of 2025, the Czech carmaker is looking to tweak its product and go-to-market strategy, Petr Janeba, the company brand director, told ET. 

Skoda Auto, said that the compact SUV would position Skoda to compete in the largest segment of the Indian automotive industry. 

As Skoda Auto India prepares to enter the high volume, competitive compact SUV market in H1 of 2025, the Czech carmaker is looking to tweak its product and go-to-market strategy, Petr Janeba, the company brand director, told ET. 

The upcoming model will play a crucial role in the Volkswagen Group brand’s target to cross the 100,000 unit a year sales milestone by 2026 and attain 5% market share by end of the decade. Skoda Auto India sold 48,755 vehicles in 2023 after record sales of 53,721 units in 2022. “One needs to improve with every product launch, nobody is perfect. We probably need to bring much more features in the car like a 360-degree camera, panoramic sunroof, advanced driver assistance systems--many of these have now become standard. There’s also a lot of homework to be done,” said Janeba, who joined Indian operations last month. 


13. PVC: Need to quadruple capacity to support India’s economic growth to $10 trillion by 2030 
ET Gov. 8 Mar. 2024 

Securing our supply chains, especially in strategic sectors like PVC is the need of the hour. Government bodies like the Directorate General of Trade Remedies (DGTR) and the Ministry of Finance should proactively safeguard domestic industries by leveraging trade remedies like Anti-dumping duties and an increase in customs duty to neutralise price undercutting. 

India’s PVC industry today is at the intersection of a growth cycle, an increase in demand, and capacity additions making this situation a make-or-break moment for it. 

Having sufficient domestic capacities for PVC is key to India’s ambitious goal of crossing the $10 trillion economy mark by 2030 as PVC is an input industrial material for a whopping 29% of the economy. 

PVC stands for Poly Vinyl Chloride and it is a high-strength thermoplastic material. It is critical for industrial products that are imperative for agriculture, infrastructure development, construction and healthcare. 

Not only are these sectors the key pillars of our nation’s economic growth, but together, they account for 29% of the economy. For example, without a sufficient supply of PVC, we will not be able to irrigate the agricultural fields and could face a food supply crisis. 

However, the PVC industry itself is facing headwinds in India, even though over $ 8 billion of investments have been lined up for increasing the capacity to match the needs of a USD 10 trillion economy that India will have in the next 7-10 years. 

Responding to the call 
In response to the steady increase in demand for PVC, which is projected to reach a staggering 7 million tonnes by 2030, domestic PVC producers have been committing significant capital to enhance their capacities. 

An impressive $8 billion (INR 65,600 crores) of investments is in the pipeline to address the capacity shortage and for India to become self-reliant in this key industry. This series of investments, if they fructify, would fortify the industry and also help create jobs and contribute significantly to the country’s tax revenues. 

India’s per-capita consumption of PVC in 2021 stands at 2.4kg per annum, which is considerably low when compared to the US (12.7kg) and China (10.3 kg). This highlights the substantial growth potential of the Indian PVC industry in the years to come and the domestic capacity additions are in line to serve this demand spike. 

These consumptions will be driven by key government programs such as housing for all, piped water for all and other key social and hard infrastructure projects. 

Assault on the domestic industry 
However, amidst these nation-building plans by the domestic players, the Indian PVC industry is grappling with unprecedented assault by imports, majorly from China and the USA. 

In 2023, the domestic demand for PVC reached 4 million tonnes, and more than 60% of this demand (2.4 million tonnes) was met by imports leaving the domestic producers serving only 40% of the demand. Clearly, the market dynamics in the industry are skewed, posing a substantial threat to domestic players in accessing the Indian market and serving the demand. 

Impact on Potential Investments 
In 2019, when the PVC import duty was revised to 10% to address the unnatural drop in the prices of imported PVC. This measure by the government led the domestic PVC players to line up funds for capacity additions. However, in 2022, there was a sudden temporary spike in PVC prices due to supply-chain disruptions caused by COVID-19, which led to the government slashing the import duty to 7.5%. 

This reduction in PVC import duty led to a massive surge in PVC imports. This development has put the entire $ 8 billion of investments by domestic players into a question mark. Presently, PVC prices are even lower than the 2019 prices when PVC duty was raised to 10%, without even adjusting for inflation. 

India finds itself at the receiving end of a full-blown dumping of PVC, primarily from China, with the intent of destroying the Indian PVC industry. This intentional dumping not only endangers the survival of the existing domestic PVC industry but deters USD 8 billion in investments that are being ploughed into PVC capacity expansion in the country. 

If we lose the investments into capacity expansion in PVC or worse, lose our existing PVC capacities, then not only will we lose out on a massive amount of jobs, but also expose 29% of our economy to supply-chain vagaries, which in turn will be driven by the fast-changing geopolitical developments. 

If this situation persists, domestic producers will be eventually stretched thin, fighting with reduced market access, import-induced pricing stress and high financial commitments to enhance the production capacity. This concoction of challenges could severely damage the domestic industry, thereby cementing India’s position as the world’s largest PVC importer, with no resolution on the horizon. 

Economic Domino Effects 
The repercussions of the PVC industry’s struggle extend beyond its own immediate downstream industry. 73% of PVC demand comes from pipes and fitting, highlighting the critical role PVC plays in agriculture and irrigation, with more than 60% of our nation's population engaged in this sector. 

The downstream sectors in which PVC plays a critical role are agriculture (15% of GDP), the construction sector (9% of GDP), the Healthcare sector (3.2%), and the Pharmaceutical sector (2% of GDP). So cumulatively a significant portion of India's GDP (29%) is dependent on the PVC Industry and its survival. 

Any impact on the domestic PVC industry which already suffers from under capacity would eventually lead India to a heightened dependence on PVC imports from China and other countries thereby challenging India’s economic self-sufficiency and supply chain resilience. 

The Path Forward 
Navigating the complexities of the PVC industry requires a collaborative approach. Apart from Government interventions through Trade remedies, industry stakeholders and policymakers must unite to fortify India’s PVC sector. Safeguarding the industry is not solely about job creation and the fruition of investments but more importantly about the supply chain ramifications in the tertiary industries where PVC plays a key role. 

As India marches from $3.73 trillion (2023) to a $10 trillion (FY 2030) economy, the journey might have similar roadblocks. India’s PVC industry today is at the intersection of a growth cycle, an increase in demand, and capacity additions making this situation a make-or-break moment for it. At this juncture, we can’t leave our domestic industries to become sitting ducks while imports from China and the US steadily capture the domestic market under our noses. 

Securing our supply chains, especially in strategic sectors like PVC is the need of the hour. Government bodies like the Directorate General of Trade Remedies (DGTR) and the Ministry of Finance should proactively safeguard domestic industries by leveraging trade remedies like Anti-dumping duties and an increase in customs duty to neutralise price undercutting. 

This will instill confidence in the domestic players and allow them to contribute towards a self-reliant India thereby helping in turning the $ 10 trillion economy vision into a reality. 

The authors are President and Senior Policy Analyst at Centre for Digital Economy Policy; Views are personal) 


14. Legacy chips:Through innovation, global collaborations India to counter China’s dominance 
ET Gov. 13 Mar. 2024 

While China, as per reports, is actively considering more than one trillion-yuan ($143 billion) support package for its semiconductor industry, as one of the largest fiscal incentives in the past five years, it focusses largely on the legacy chip segment. The plan also includes preferential tax policies as well as R&D in tune with Xi Jinping’s call “to win the tech race." 

It is also pertinent to acknowledge that post covid, the much-debated chip shortage was a function of inadequate availability of these legacy chips. 

The decreasing nanometre paradigm may be akin to "The race to the swift,” as Simpkin puts it, but the mainstream legacy chips, also referred to as ‘Foundational Chips’ in terms of transistors etched on them will be the mainstay of many industries. These include consumer products, select military hardware, heavy machinery and automobile applications. 

It is also pertinent to acknowledge that post covid, the much-debated chip shortage was a function of inadequate availability of these legacy chips. While the interpretation of legacy chips transgresses various dimensions, the US CHIPS and Science Act of 2022 defines these ever-evolving devices at 28 nanometre technology, or larger. 

These legacy chips have a central role to play in manufacturing economies with myriad utilisation in consumer and industrial applications as well as being the bedrock of innovations. 

While the advanced chips are undoubtedly the prima donna of all cutting-edge technologies, these legacy chips are often viewed with a troika consisting of conflicting demand, public investment and manufacturing capacities which is apparently making their production spiralling into a lower scale, worldwide. While there is an embargo on advanced chip technologies to China from the west, there is a huge impetus in terms of state backed investment in respect of these legacy chips in China. 

This could be the old playbook leading to overproduction of legacy chips by China in the next four or five years, price advantage accrued due to the sheer volumes of scale and elbowing out of established entities from various market segments thereby affecting their revenues. It is a known business and geopolitical construct that flagging revenues cause dislocation and relocation of well-established technology behemoths, geographically. China has demonstrated this ability in the past and the electric vehicles market is an example of this influence and scale. 

While China, as per reports, is actively considering more than one trillion-yuan ($143 billion) support package for its semiconductor industry, as one of the largest fiscal incentives in the past five years, it focusses largely on the legacy chip segment. The plan also includes preferential tax policies as well as R&D in tune with Xi Jinping’s call “to win the tech race” in October 2022. 

While there may be tighter export controls in the offing for the west, some markets and geographies which are devoid of any home-grown semiconductor companies are likely to be more affected by this intended overproduction of legacy chips by China to cater for their demand and associated ease of imports. This is an important facet to be considered in the overall mosaic of technology, policy and geopolitics. While there is an argument of executing a series of stringent export controls and anti-dumping duties which can be levied in this context, the diversified supply chains need to be looked at with a focus on alternate suppliers and logistics. 

The commissioning of the Kumamoto plant in Japan by TSMC last month perhaps envisions this understanding. Unrestricted volumes and competitiveness, if unleashed by China in the future, needs to be viewed under the prism of corresponding security aspects by the designated agencies as well. 

Indian policies are most enabling and with the recent announcements of Micron in June 2023, the establishment of a fabrication facility at Dholera in Gujarat and two ATMP facilities at Sanand in Gujarat and Morigaon in Assam, which have been announced on 29 Feb 24, post approval by the cabinet. There are various other proposals in the pipeline and a lot is being done by the government of India. 

The scale and timing, however, needs careful monitoring as well as dynamic policy changes, keeping the anticipated Chinese footprint in legacy chips production for the future. While it seems that the timing of Indian production and increased production of legacy chips by China may just about converge, the same needs to be studied and factored in by the industry as well as in the future policies. 

An increased push for production of various speciality and bulk semiconductor grade chemicals by the Indian chemical industry, impetus on storage, distribution and warehousing facilities and indigenisation of a major part of supply chain dynamics will be a game changer in the next few years. Reinforcing innovation and mutually benefitting international collaborations will also be the cornerstones for ensuring an equitable semiconductor landscape in this part of the world, futuristically. 

(The author is Vice President IESA; Views are personal) 


15. Mandaviya inaugurates 40 new facilities to manufacture bulk drugs, medical devices 
PTI, 3 Mar. 2024 

New Delhi, Mar 2 (PTI) Union minister Mansukh Mandaviya on Saturday inaugurated 40 new facilities across the country to manufacture bulk drugs and medical devices to enhance self-reliance and reduce dependence on imports for such critical materials and equipment. 

Speaking at the inauguration ceremony here, Minister for Chemicals and Fertilisers Mansukh Mandaviya said the country has taken a big step towards self-reliance, with the commissioning of 27 new bulk drug facilities and 13 medical device manufacturing plants. 

The facilities, owned by various companies, were commissioned under the PLI Scheme for bulk drugs and medical devices, respectively. 

Mandaviya said that during the COVID-19 pandemic, the dangers of the supply chain getting affected, the risks of being highly dependent on imports of critical resources like bulk drugs and medical devices and its potential effects on India's pharma and MedTech sector led to a lot of brainstorming within the central government. 

The Production Linked Incentive (PLI) scheme from the sector is a result of the wide-ranging discussions, he noted. 

Any disruption in the supply of critical APIs could have impacted the production of 1,000 formulations in the country, Mandaviya said. 

"The PLI- scheme identified 48 critical bulk drugs for manufacturing locally. The success of this inaugural scheme led the government to launch the Rs 15,000 crore PLI-II scheme, which envisaged to increase our cost competitiveness for medicines and medical products in the international market," he stated. 

Around 12,000 drug firms in the country depend on bulk drugs for their finished products, he stated. 

"It is noteworthy that today India has not only reduced its dependence on medicines, API and medical devices, the country is also emerging as a major exporter of these products, thanks to the success of the PLI scheme," Mandaviya added. 

He noted that India never lacked brain power or manpower. It just lacked willpower, and that requirement has now been fulfilled by the able leadership of Prime Minister Narendra Modi. 

Mandaviya also announced that a plant to produce Penicillin G would be inaugurated in June this year in the Modi government's third term. 

The facility would pave the way for the resumption of the manufacturing of the critical medication in the country, he stated. 

The PLI scheme envisages manufacturing of 41 bulk drugs with a total outlay of Rs 6,940 crore from 2020-21 to 2029-30. 

Already, 26 applicants for manufacturing of medical devices have been approved for 138 products under the PLI scheme, with a total financial outlay of Rs 3,420 crore for 2020-21 to 2027-28. 

Department of Pharmaceuticals Secretary Arunish Chawla said the size of the pharmaceutical industry in India stood at Rs 2.4 lakh crore in 2013-14, and as per the annual survey of industries for 2021-22, it has already crossed the Rs 6 lakh crore mark. 

The PLI scheme is an integral part of the strategy to incentivise manufacturing and make India a key player in the global supply chains, he added. 

Chawla stated that last year, for the first time, the country's exports of bulk drugs matched its imports into the country. 

With plants we have inaugurated today, 22 bulk drugs will now be manufactured in India, he noted. 


- Services (Education, Healthcare, IT, R&D, Tourism, etc.) 


16. GCCs face talent exodus amid rising competition 
Mint, 27 Feb 2024, Jas Bardia , Devina Sengupta

There is significant demand for mid-level data science, cybersecurity, and UI/UX professionals, especially women candidates with 4-10 years of experience—a prime target group for poaching activities. 

Global capability centres have surged ahead of IT service firms in absorbing talent from campuses and the job market are facing attrition within their own coterie. (Mint) 

BENGALURU/MUMBAI: Global capability centers (GCCs), which have outpaced IT services companies in talent acquisition both from campuses and the job market, are now grappling with attrition due to rising competition among themselves. 

The skilled workforce at GCCs, accustomed to serving US and European clients, are prime targets for competing GCCs seeking to onboard personnel without delay, as they enter or expand operations in India. 

"GCCs, too, are susceptible to attrition risk, in view of rising demand for talent across GCCs, particularly with a growing number of GCCs getting established. It is imperative for a GCC to be right on the top of their talent proposition and workforce strategy," said Shalini Pillay, India leader for GCCs, KPMG in India. 

According to Pillay, talent is attracted by a compelling narrative, detailing the purpose, vision, and future roadmap, and an exciting array of new roles. "GCCs are working to move up the value chain, adopting new emerging technologies and driving innovation and transformation. Hence, if your GCC is not keeping pace (with competition), you run the risk of losing talent to the many others who are progressing along these lines," she added. 

According to IT industry body Nasscom, GCCs account for 50-70% of global tech and operations headcounts. Around 1,500 GCCs and their 1.66 million employees, contribute to a market size of $46 billion. 

GCCs emerged as bastions of stability and hiring, with IT service firms downsizing their workforce following a hiring spree through 2021 and the first half of 2022. Offering 1x-2x higher compensation than their services counterparts helped GCCs to attract top talent. But now, GCCs must remain vigilant. 

"GCCs had hired a large number of junior-level executives, often comprising a cohort that leaves for higher studies or the next career opportunity. Middle management attrition is increasing because newer rivals want ready talent for their product platforms," said Vijayaraj Palaniraj, head, talent acquisition, Equiniti India, the GCC of UK-based share registrar. Palaniraj expects attrition numbers to rise in the first quarter of FY25 as appraisals will be completed by then. 

Cost pressures in the US and Europe are also driving firms to expand their workforce in India, as compensation is lower than their global counterparts. This is likely to increase demand for talent, consequently leading to more exits. 

There is significant demand for mid-level data science, cybersecurity, and UI/UX professionals, especially with 4-10 years of experience—a prime target group for poaching activities. Besides, demand for women professionals are also on the rise. Companies are also increasingly becoming aware of the need to enhance diversity quotas, which is further driving demand, said Kamal Karanth, co-founder of Bengaluru-based staffing firm Xpheno. 

According to a study by Aon, while GCCs, like the rest of the IT sector, have witnessed an overall decline in attrition from 19.5% during the hiring frenzy of 2022 to 13% in 2023, industry watchers said it may start inching up again. 

“In Bengaluru and Hyderabad, where most GCCs are located, average attrition remained steady at 18% since the post-covid peak of FY21-22 which should be considered high," said Karanth. 

Retaining top performers will be a challenge, given that top GCC talent will receive 1.73 times the compensation of the average performer, according to Aon. Besides, GCCs recruited a significant number of (non-IIT) engineering students from tier 2 and 3 cities, when IT service firms had introduced stringent hiring requirements. 

Balasubramanian Sankaranarayanan, president and chief executive of Thryve Digital Health LLP, emphasized the importance of offering long-term incentives to top performers across hierarchies to help "ringfence their top talent". Despite maintaining attrition in lower teens, a GCC with over 4,000 employees, must "enhance the compensation offered to niche skilled profiles" in order to retain them. 


17. Indo-Dutch semiconductor opportunities: Collaboration for transforming India into talent powerhouse 
ET Gov. 06 Mar. 2024 

The government, private sector and education system must work together to build a strong talent pool to meet the demands of the industry. International collaborations will be a key to this overall effort. India has the potential to be the ‘Talent Powerhouse” of the world. 

The Indian semiconductor and electronics industry has undergone a sea change over the last two decades. 

The Indo-Dutch Semiconductor opportunities report is a fruition of a concerted effort of over a year by The Netherlands Innovation Network and India Electronics and Semiconductor Association. 

The report was unveiled on March 4, in the presence of the Ambassador of the Netherlands in India, Her Excellency Marisa Gerards along with senior officials from the Ministry of Electronics and Information Technology (MeitY), Industry captains from India and the Netherlands, representatives from MEA, Academia and Start up ecosystem. 

The scope of this report is to acquaint both ecosystems about the prowess and opportunities in both countries. The very premise of this report is to examine and put forth views of industry, academia and the policy metrics from both the countries with carefully curated and focused interactions on a myriad of subjects, in tune with the overall theme. 

The methodology for curating the report has been focused on research and multi stakeholder interactions. This brings to fore the strengths of the semiconductor industry in The Netherlands and the opportunities, as they present themselves in India. The Netherlands is a powerhouse in this space with the presence of some important entities like NXP in India since a long time with a large workforce. 

The Netherlands also has a vibrant academic and research landscape which can be harnessed by both the countries for mutual benefit in terms of skill development, exchange programs and various other aspects. 

The Indian semiconductor and electronics industry has undergone a sea change over the last two decades. These have primarily been in the product domain, the evolution of the retail channel and an enabling policy landscape. The requirements of both the consumers and businesses have evolved, leading to a demand for more innovative products. The industry’s ecosystem has evolved to keep pace with the changing demand patterns. 

The supply chains are now far more complex, diverse, and optimized to meet the new industry structure. Currently, while a significant share of Indian demand is met by imports, the Indian landscape is being ushered into an era wherein besides the design aspects, the manufacturing of these vital chips as well as several components will be indigenized through an astute policy support and incentivized production from the government of India. 

The semiconductor industry in the country is expected to grow at a CAGR of 10.1% from 2021 to 2026, driven by the demand for electronics, the government's pathbreaking policies, push for local manufacturing and the growing adoption of emerging technologies such as 5G, AI, IoT and others. The Indian government has already launched several initiatives to boost local manufacturing and attract foreign investments in the semiconductor industry. 

The government, private sector and education system must work together to build a strong talent pool to meet the demands of the industry. International collaborations will be a key to this overall effort. India has the potential to be the ‘Talent Powerhouse” of the world. 

A strong talent pool in the semiconductor industry through joint collaborations will not only contribute to the country's economic growth but will also drive innovation and create job opportunities for its citizens. 

This joint effort, which is a one of its kind, will provide a ready reckoner to both the Dutch and Indian entities to study the landscape and look at collaborations at all levels. It will also provide the requisite details to both the academia and various other innovation organizations to look at this important space of the future. 

(The author is Vice President of IESA; Views are personal) 


18. Undersea cable linking Kochi & Lakshadweep is major milestone in digital inclusion: President & CEO NEC India 
ET Gov. 9 Mar. 2024 

"Beyond technological milestones, the profound impact of this project on the socio-economic development of the Lakshadweep Islands is immeasurable. With high-speed internet connectivity, the islanders will gain access to a wealth of opportunities that were hitherto out of reach." 

Through this project connectivity from Kochi was extended to eleven Lakshadweep Islands: Kavaratti, Agatti, Amini, Kadmat, Chetlet, Kalpeni, Minicoy, Androth, Kiltan, Bangaram and Bitra. 

During his address at the inauguration ceremony, PM Modi said, “Kochi-Lakshadweep Islands Submarine Optical Fiber Connection project has been dedicated to people today and will ensure 100 times faster Internet for the people of Lakshadweep.” 

“This will improve facilities like government services, medical treatment, education and digital banking. The potential of developing Lakshadweep as a logistics hub will get strength from this,” the Prime Minister added. He talked at length about the social and economic benefits of the undersea internet cable project. Funded by Universal Services Obligation Fund (USOF), Department of Telecommunications, the project was awarded to NEC Corporation India, by BSNL, which was the Project Executing Agency. 

In conversation with ETGovernment, Aalok Kumar, President & CEO, NEC Corporation India, sheds light on the intricacies of the KLI-SOFC project and other technology related work that NEC is doing in India. 

Edited excerpts: 

How does NEC India’s completion of the optical submarine cable system project, linking Kochi and the Lakshadweep Islands, contribute to India's broader mission of digital inclusion and socioeconomic development? 
The successful completion and inauguration of the optical submarine cable system project linking Kochi and the Lakshadweep Islands represents a significant milestone in India’s journey towards digital inclusion, under the Digital India mission. This project was awarded to NEC by BSNL in 2021 and inaugurated by Prime Minister Narendra Modi in January 2024. This project is a testament to the transformative power of collaboration between public and private entities in driving infrastructure development to build a digitally empowered society and knowledge economy. 

What kind of experience does NEC have in the execution of such undersea cable projects? 
The successful completion of this project underscores our expertise in submarine cable technology. We have consistently delivered innovative solutions that enable seamless connectivity across global regions like Taiwan, Indonesia, and the Transatlantic region. Within India, before this, we have also successfully conceived and deployed a submarine cable system connecting Chennai with the Andaman & Nicobar Islands, bringing deep tangible and intangible benefits to the locals there. For over five decades, NEC has been a leading player in submarine cable systems, having constructed over 300,000 kilometers of cables, equivalent to circling the earth nearly eight times. 

What are the social implications of this project? 
Beyond technological milestones, the profound impact of this project on the socio-economic development of the Lakshadweep Islands is immeasurable. With high-speed internet connectivity, the islanders will gain access to a wealth of opportunities that were hitherto out of reach. Local businesses will have the platform to expand their reach beyond the confines of the islands, tapping into broader markets and driving economic growth. Improved access to education and healthcare services will revolutionize the way these essential services are delivered and experienced. Remote learning initiatives will flourish, providing students with access to a world-class education regardless of their geographical location. This project will also enable telemedicine services through which residents can receive timely medical consultations and treatments without having to travel long distances. 


Aalok Kumar, President & CEO, NEC Corporation India 

This project is also a major business achievement for NEC India. How do you see the potential of this project? 
The culmination and unveiling of the optical submarine cable system project marks a significant milestone for us. But the important thing is that this project marks a significant milestone for India’s trajectory towards a digitally inclusive future under the Digital India campaign, as envisaged by the Indian government. We are honored to have been entrusted with the responsibility to contribute to this transformation. It reinforces our commitment to serving the people and remaining at the forefront of creating innovative solutions that empower citizens and foster connectivity nationwide. We believe enhanced communication infrastructure will strengthen social connections and foster community development. Families and friends separated by distance will be able to stay connected through high-quality video calls and messaging platforms. The islands' tourism sector stands to benefit greatly from improved connectivity, attracting more visitors and boosting the local economy. 

How does the ICT solutions implemented by your company in its Smart City projects enhance the quality of life for citizens across different locations? 
All our solutions are innovated and deployed on a dual principle: first, supporting the governing structures and other authorities’ officials within the city to be able to function more seamlessly and with ease, second, supporting the citizens in realizing a life of day-to-day convenience and efficiency, security and the assurance of safety, and the ability to live their best lives. Our global expertise and deep understanding of contextual specificities that give rise to unique needs across different regions, have enabled us to innovate solutions to address this, contributing to sustainable urban development. We have been an integral part of the development of over 12 smart cities across India. 

What is the unique smart element in these smart city projects? 
All the solutions that are deployed under the purview of the project culminate into our Integrated Command and Control Centres (ICCC), which serve as the nerve center or ‘the brain’ of the city. Taking the analogy further, if we were to think of the city as a human body, each part of that body talks to the brain, and if for instance one leg is hurt, the brain receives the signal and knows to send the message to the other leg to tell it to support and compensate. Similarly, in a city, if there is a massive traffic incident in one part of the city, the Intelligent Traffic Management System (ITMS) is geared to take the cues and re-route traffic efficiently to avoid a ripple effect all over the city. 

We address issues of public safety in a manner that emphasizes rapid response rates by city officials. This is done through facial recognition-enabled intelligent cameras that detect unusual activities and incidents of unrest, send timely alerts, and set off a chain of reactions that are geared toward resolving the issue. Other solutions include environmental sensors, automatic fare collection systems (for public transport), Automatic Fingerprint Identification System (AFIS), etc., which can be adapted in many ways to enhance the livability and safety quotient of a city. 

How has NEC India’s own knowledge grown from the experience of working on these projects? 
The depth and range of expertise that NEC India has gained through these myriad projects has been instrumental in the India operations being acknowledged by our global counterparts. This has come in the form of India being bestowed with a leadership position in our global smart city vertical. This will manifest in a deeper collaboration between our global operations towards strengthening the vertical at a global level and the establishment of best practices that borrow from the most successful use cases across different geographies. 

How do the emerging smart city solutions contribute to streamlined management and informed decision-making within urban settings, shaping the future of city living? 
The emerging smart city solutions offer a seamless blend of technology and human-centric design that's shaping the future of city living. These innovative solutions aren't just about managing cities; they are about creating vibrant, connected communities where people can thrive.Imagine a city where everything from traffic management to emergency response is seamlessly coordinated through a single platform. The emerging smart city solutions are about more than just technology; they are about improving the quality of life for everyone who calls a city home. By embracing innovation and collaboration, these solutions are paving the way for a brighter, more sustainable future—one where cities are not just places to live, but communities where people can truly thrive. 

How do you view India as a business opportunity for high tech infrastructure projects? 
India's status as a fast-paced, evolving nation provides a wide scope to deploy solutions that cater to diverse regional differences and address unique challenges. The country's topographical diversity fosters innovation, whether it is adapting existing solutions or developing new ones to suit specific needs. In line with this, we take on a collaborative approach that allows for the development of tailored solutions to solve nuanced challenges and ensures that they resonate with the needs and aspirations of the Indian populace. India’s abundant talent pool and ongoing technological revolution have always presented as an exciting opportunity for us–to collaborate and co-create India’s tech-led future. 


19. Fly91: Can India’s new regional airline chart a different course from its predecessors? 
ET, 12 Mar. 2024 

Last week, Goa-based startup airline Fly91 got the green signal to start operations. In a country which has proved to be the graveyard of several private airlines over the last two decades, can the latest entrant follow a new flight path? 

Three years ago, when Manoj Chacko reached out to investors for funds to give wings to his dream airline, Fly91, he had a hard time getting responses. India’s oldest carrier, Naresh Goyal’s Jet Airways, had just gone bust, and the investor sentiment was at an all-time low. Moreover, the fact that Chacko was part of the founding team behind Vijay Mallya’s Kingfisher Airlines, which had gone bankrupt in 2012, didn’t help either. 

“They [investors] all told me the same old joke: To become a millionaire, you start off as a billionaire, and invest in an airline,” Chacko, managing director and CEO, Fly91, tells ET Prime, recalling the unfavourable responses he got from investors who cited Virgin Atlantic founder Richard Branson’s famous comment. 

Last week, Fly91 got the green signal from the Director General of Civil Aviation to start operations after it secured INR200 crore in funding from a clutch of investors and cleared technical evaluations. 

How did the Goa-based startup airline manage to convince investors to write cheques despite a strong perception that aviation is largely a loss-making business? And more importantly, can Fly91’s 54-year-old CEO ensure that the latest entrant into a highly competitive market doesn’t meet the fate of other regional turboprop carriers which have become a part of India’s civil aviation history? 

An ‘unforgiving journey’ 
Since 2015, Chacko has been in informal discussions with former Fairfax Holdings executive Harsha Raghavan, who is currently the managing partner of private equity firm Convergent Finance LLP, about his plans to start a new airline. Both had known each other since Chacko’s stint at SOTC Travel Ltd, which was acquired by Fairfax in the same year. 

Three years back, Convergent agreed to invest around INR100 crore for a 49% stake in Fly91’s parent Just Udo Aviation Pvt Ltd — the highest holding allowed in an Indian airline under foreign direct investment. But Chacko still had a long way to go for the remaining INR100 crore. 

“It is a hard, lonely, unforgiving journey. How many pitch decks went? Maybe 400-500. How many people saw our first presentation? I think more than 300. How many called back for a meeting? Probably close to 200,” Chacko recalls, adding that 140-150 investors were involved in at least four iterations of the business plan. “Around 150 serious meetings were held over this three-year period”. 

Chacko met as many investors as he could — from private-equity and venture-capital firms to family offices, he knocked at every door. But at the same time, he had some predetermined criteria in place. 

“I stayed away from the rich people because they get in for vanity. They want to be seen with ministers…. and are not here to build an organisation,” Chacko says. 

Despite the initial reluctance, investors slowly started warming up to the idea of an airline which would induct six turboprop ATR planes annually for the next six years while adding one base each year and connecting all viable destinations around them. 

Soon, Chacko had a ready retort to those quoting Branson. “My counter to the joke was that each time an aviation professional decides to be an airline entrepreneur, a successful airline is born,” he says, citing the examples of Rakesh Gangwal (IndiGo), Adel Abdullah Ali (Air Arabia), David Neeleman (Breeze Airways), and Michael O'Leary (Ryanair). 

It worked. 

Besides Convergent, Fly91 today has as many as 40 investors, with many of them owing single-digit stakes. Besides Chacko, his family, and friends, investors include Damani Finance managing director Ramesh Damani; Ohm Stock Broker’s promoter and director Amal Parikh; former advisor to Texas Pacific Group and founder of advisory lead investment firm Magnetic, Rajeev Chitrabhanu; and EMA Partners India managing director K Sudarshan. 

Now that the investors are aboard, what does Fly91’s flight path look like? 

Humble beginnings 
Starting with Goa, Fly91 will add Noida and Navi Mumbai airports in the subsequent years of its operation depending on the readiness of the latter two in terms of hosting flights. Besides, the airline plans to connect cities such as Agatti in Lakshadweep, Bengaluru, Sindhudurg, Hyderabad, Pune, and Jalgaon from Goa. 

Fly91 will also tap into the INR200 crore funds under the central government’s regional connectivity scheme, Udan. The airline has already got the approval to operate flights on 20 routes during the first year, in which period it hopes to avail the scheme subsidy. 

The subsidy under the Udan scheme will help startup airlines cushion the losses incurred in the first few years. Rakesh Jhunjhunwala-led Akasa Air, for example, lost around INR600 crore in the first year of operations with around 20 Boeing planes, but was not eligible for the scheme subsidy as it operated bigger 737MAX jets on metro routes. 

No other regional airline in the world, Chacko says, has started with INR200 crore in the bank. According to him, this amount, along with the government support, will be good enough for five years. However, Chacko is quick to point out that Fly91’s business model is not built with the Udan subsidy in sight, but rather with the clear goal of emerging as an airline offering last-mile connectivity with around five dozen unserved and underserved airports across the country. 

In line with its humble beginnings, Chacko says, Fly91 will be a frugal carrier. The airline’s livery and the crew’s uniform have already been designed in house as against the common practice of spending crores to announce an airline’s arrival through advertisements and social-media campaigns. 

Though Chacko has had his own share of struggles, he isn’t the first entrepreneur with an airline background to walk this path. Akasa Air co-founder and CEO Vinay Dube had to deal with even more drag and resistance before his airline could take off. 

Chacko vs. Dube 
In some ways, Chacko enjoyed some advantage over Dube, who had in December 2020 applied for a no-objection certificate for Akasa Airline from the aviation ministry with just INR1 lakh in capital. In contrast, exactly three years later when Chacko applied for the aviation ministry, he had INR10 crore in authorised capital. 

Moreover, Dube’s journey was probably tougher since he was the CEO of Jet Airways when the airline collapsed in 2019. A raging pandemic only worsened the situation. 

Dube’s Dubai-based friend and investor Madhav Bhatkuly, the founder of investment fund New Horizon, had told Akasa co-founder that he would invest only once Dube found an anchor investor. In the case of Chacko, he had already received a commitment to invest from Convergent’s Raghavan. 

In 2021, Rakesh Jhunjhunwala came in as the anchor investor in Akasa Air by picking up a 46% stake with around INR250 crore. According to people close to Dube, he probably convinced the late billionaire investor to make his bet as he expected weaker players such as SpiceJet to go bust during the pandemic, thereby giving Akasa an opportunity to become the third largest player in India’s aviation market. Indeed, soon after investing in the airline, the ‘big bull’ told a business news channel that “some of the incremental players may not recover [from the pandemic]”. 

But that prediction did not materialise completely. While SpiceJet continues to fly even today, Nusli Wadia’s Go First filed for bankruptcy in May 2023 citing inability to fly because of faulty Pratt & Whitney engines and lack of funding. 

As things stand now, the demise of another Indian airline looks unlikely. SpiceJet has secured some funding from investors while both Air India and IndiGo enjoy strong financial backing. Akasa, too, has sound funding support, at least for the time being. 

So, will Fly91 have a smooth flight ahead? 

"I stayed away from the rich people because they get in for vanity. They want to be seen with ministers…. and are not here to build an organisation." 

— Manoj Chacko, CEO, Fly91 

A few red flags 
India has a long history of failed airlines which either flew only turboprop planes or limited themselves as regional players. Air Pegasus, Air Carnival, Air Costa, Paramount Airways, and Air Mantra are examples. 

Late last year, Gurugram-based regional airline FlyBig defaulted on its ATR planes. While Yes Bank and aircraft lessor Vman Aero Services have filed a complaint with the Economic Offences Wing against the airline alleging bank fraud and forgery of over INR8 crore, FlyBig has denied it. 

Meanwhile, state-owned airlines such as Alliance Air which fly turboprops have had a rough time, too. The company registered a wider net loss of INR566 crore in FY23 on a revenue of INR1,098 crore. It has been forced to seek INR600 crore in additional support from the government in this fiscal. This is over and above the INR100 crore in Udan subsidy the airline receives annually. 

According to a former Alliance Air top executive who did not want to be named, though Fly91 is on a strong footing to operate ATR planes, its current capital of INR200 crore may look tiny after one year. He further lists out some of the reasons for the same. 

#1. Limited traffic and heavy competition make it difficult to make money on most routes from Goa as was the case with Alliance Air. 

#2. A single ATR engine costs INR15 crore, and the airline will have to keep a spare engine all the time. While there is a short supply of engines globally, old ATRs have a longer downtime and limited availability of spares pushes up costs as inventory needs to be stored at multiple locations. An older engine going for a major maintenance check will itself cost around INR3 crore-INR4 crore. 

#3. In case of an incident (for example, if a landing gear fails), the aircraft will have a long waiting time due to the limited number of service providers. 

#4. Routes like Goa-Bengaluru and Goa-Pune may face heavy competition from IndiGo and Air India Express as they won’t allow their turf to be challenged. For example, a few years back Alliance Air had started flights out of Lucknow to several destinations including Dehradun, but eight months down the line IndiGo started operations on the same routes, forcing the former to pull out on account of heavy losses. 

#5. ATRs have night-landing issues unlike IndiGo’s and Air India’s Airbus A320s. So, they have to return to airports early. This means that they can be operated only for around nine hours, and hence, serve only a handful of short destinations. This will affect fleet utilisation. 

The final cut 
For a business that’s earned a bad name for ‘turning billionaires into millionaires’, Chacko has done a marvellous job of convincing investors. 

“My family keeps telling me that my shoes have worn out,” says the Goan, recalling the tortuous three-year journey. 

Given that India’s aviation history has not been kind to regional airlines, Chacko may have to buy many more pairs of shoes as he looks to get his airline up in the sky from coming Monday and steer it to profitability over time. 

(Graphics by Mohammad Arshad)(Originally published on Mar 12, 2024, 06:39:09 AM IST) 


20. On the fast track: ITC Hotels opens 24 properties in 2 years; to foray abroad 
ToI, 13 Mar. 2024, Saurabh Sinha 

On the fast track: ITC Hotels opens 24 properties in 2 years; to foray abroad© Provided by The Times of India 
NEW DELHI: Indian hospitality biggie — ITC Hotels — is set to have properties abroad, after Taj and Oberoi. The chain will be making its international debut with ITC Ratnadipa in Colombo. ITC Hotels, which will soon be hived off from the parent company, plans to have multiple hotels in destinations near India. 

Its “asset right” strategy of having a bigger management portfolio has helped it open 24 properties in the last 24 months. The two brans launched during Covid — Storii and Mementos — are seeing rapid growth. Jaipur, for instance, will get a second luxury Mementos by the end of this month. While the chain has made significant inroads in the North, it is now increasing its presence in the south. And abroad too. 

On Monday ITC Hotels announced the signing of a management agreement with Narne Hotels and Resorts to launch a 150-key Welcomhotel at Madikeri in Kodagu district (formerly Coorg) in Karnataka. 

ITC Hotels divisional chief executive Anil Chadha said regarding the latest signing: "Madikeri is an important market for ITC Hotels. Over recent years, this region has grown in popularity and we saw a niche space for leisure travel.… With this signing ITC’s Hotel group further strengthens its presence in Karnataka, where we currently operate 11 hotels and over 1,300 rooms under various brands including ITC Hotels, Welcomhotel, Fortune and Welcomheritage.” 


India and the World 


21. Grow in India, grow for the world: Sowing seeds of digital transformation in agriculture 
ET Gov. 25 Feb. 2024 

NavIC, which is India’s own indigenously developed navigation system, holds immense potential for consumer-facing and sectoral applications, particularly in Agri-tech. However, barriers to data flow may impede collaboration with international players and limit the technology's scalability. 

Sustaining the moratorium on digital technologies is not just a matter of economic policy; it is a strategic imperative for the holistic development of India. 

India is making rapid strides towards achieving the vision of Viksit Bharat @ 2047. The world has set its eyes on the nation that has emerged as a bright spot, pulling itself out of the shadow cast by the pandemic on the back of rapid digitalisation and a prudent policy ecosystem. 

To perpetuate this growth, it is crucial to ensure that this progress is spread across sectors, aligning with the envisioned Amrit Kaal’s principles of inclusive and sustainable growth. As one of the most crucial sectors, Indian agriculture has persistently faced challenges in optimising use of technology for enhanced efficiency and effectiveness, and encompassing knowledge and best practices of traditional Indian farm practices. Moreover, an unorganised supply chain further compounds these challenges. 

The industry firmly believes that the Agri-tech sector offers a beacon of hope, leveraging digital infrastructure and innovative technologies to enhance productivity and safeguard our farmers from these challenges. The government's vision of doubling farmers' income is an achievable reality through the strategic integration of technology, ushering in transformative changes in the agricultural landscape and ensuring sustainable growth. 

The emerging Agri-tech landscape, powered by technologies like cloud computing, artificial intelligence/machine learning (AI/ML), earth observation, and remote sensing, is poised to revolutionise the practice of agriculture. However, these technologies, including next-generation tech like precision agriculture, robotics in agriculture, alternative proteins/meats, 3-D printing, and blockchain for food supply chains, which will be crucial to food security, are heavily dependent on unrestricted data flow. 

In 1998, the World Trade Organisation (WTO) and its members adopted a moratorium that prevented the imposition of tariffs on electronic transmissions. Over the past 25 years, the members have signed provisional deals to extend the moratorium. The next ministerial meeting is set to deliberate on the extension of the agreement again, and India has a significant role in shaping the outcome of this meeting. 

The moratorium, by promoting global connectivity, plays a crucial role in facilitating the cross border data flows necessary for digital technologies. The moratorium, in this context, refers to the suspension of tariffs or taxes on digital services, enabling the free flow of digital data across borders. This measure ensures that emerging technologies critical for the growth of the Agri-tech sector can access the data they need to operate efficiently. 

Admirably so, the Indian government is an advocate for preserving the interests of developing economies. However, the abrupt removal of the moratorium may lead to loss of opportunities, especially in the domain of emerging technologies, which might pose an eventual threat to the pace of India’s Vikas. This could be akin to shock treatment, particularly for industries heavily reliant on digital technologies, misaligning with India's food security aspirations, the vision of Amrit Kaal, and digital adoption goals for the realisation of Viksit Bharat. 

A glance at other developing countries reveals that technologically aided economies reap better produce and results. Many nations, similarly reliant on technology for their economic development, have refrained from opposing the moratorium, recognising that they could miss out on opportunities for growth and are not adequately prepared to navigate the potential challenges that might arise. 

For India, maintaining the status-quo not only prevents missing out on the export of Indian agricultural practices through the use of technology but also aligns with the broader ethos of ‘Make in India, Make for the World.’ It promotes tailoring nutritional needs to meet India's requirements and paving the way for next-generation superfoods 
Promoting global connectivity is not just about facilitating cross-border data flows; it is about fostering economic growth and collaboration on a global scale. The moratorium enables businesses reliant on cloud services, e-commerce, and digital platforms to thrive, contributing to the interconnectedness of our world. 

This interconnectedness, in turn, supports innovation, deployment of new use cases and emergence of sustainable food supply chains which guarantee food security for the planet and technological advancement globally. While it is true that India is witnessing an exponential rise in the imports of electronic transmissions, it is also an opportunity for the nation to share its own knowledge, traditional agriculture, and digital public infrastructure and expertise in kind. 

The moratorium's positive impact on the transfer of technology is particularly evident in key emerging sectors such as semiconductor manufacturing, quantum computing, data storage, cloud services, and many more. But one cannot overlook the importance of agriculture in this equation. 

Agriculture is not just a means of livelihood; it is the backbone of the Indian economy. Data-driven solutions offered by Agri-tech have the potential to transform traditional farming practices, making them more efficient, sustainable, and resilient to external challenges, especially climate change. From precision farming to predictive analysis, these technologies can revolutionise the way we approach agriculture. 

NavIC, which is India’s own indigenously developed navigation system, holds immense potential for consumer-facing and sectoral applications, particularly in Agri-tech. However, barriers to data flow may impede collaboration with international players and limit the technology's scalability. Moreover, seamless knowledge transfer is critical to support the development of new indigenous technologies. 

With India’s economic ascent, challenges and opportunities for growth, both on a national and international scale, should be considered carefully when re-evaluating our stance on the moratorium. As doors open to post-modern trade with G20 and BRICS countries, this is the opportune moment to reassess our business objectives in alignment with the vision of Viksit Bharat @ 2047. 

As India stands at the cusp of a transformative era, it becomes imperative to carefully navigate various considerations. Sustaining the moratorium on digital technologies is not just a matter of economic policy; it is a strategic imperative for the holistic development of India. 

Learning from the success of the 'Make in India, Make for the World' initiative, we must continue to 'Grow in India, Grow for the World.' True to the essence of Viksit Bharat, we must tread a path towards national prosperity and elevate India to a leadership role in championing sustainable development on the global stage. 

(The author is Founder, Anantam Ecosystems; Views are personal) 


22. How to Get Koh-i-noor Back 
ET, 26 Feb. 2024 

In a classic case of karma catching up — call it ‘Revenge of the colonies’ — in August 2023, the British Museum announced that nearly 2,000 items from its ancient Greece and Rome sections had been stolen. After some six months of a team working with the police, a curator was found to have stolen from the museum storerooms. 356 engraved gems and other items of jewellery were recovered, while thousands still remain ‘out there’. 

Of the 356 items, 10 have been on display since February 15 in an exhibition on till June 2 at the British Museum titled, ‘Rediscovering Gems’. The chair of the museum’s board of trustees stated that the new display was an ‘example of openness’. 

Nobody can accuse the British Museum of not being ‘open’ with their displays of artefacts obtained through means fair and foul. An analysis of the museum’s online database found that there were 2.2 million items from at least 212 different countries, including 52,518 from India. This is apart from other Indian artefacts strewn across museums in Britain. 

As far back as the early 2nd millennium BC, the Mesopotamian ‘Laws of Eshnunna’ impart that what is stolen must be returned. Unfortunately, enforcing international conventions for repatriations of cultural objects has always been a challenge. Until the second half of the 19th century, jus praedae — ‘prize right’, by which the victorious army could seize property of an enemy nation — was accepted norm. 

Over time, several conventions have tried to tackle the issue. 

Brussels Declaration, 1874 Dealing with laws and customs of war, was the first attempt to protect private property. 

Hague Convention, 1907 Sought to protect buildings dedicated to religion, art and science. 

Neither mentions cultural property. 

Hague Convention, 1954 Sought to protect cultural property during armed conflict post-World War 2. 

Unesco Convention, 1970 First convention to deal with artefacts stolen outside of war. It seeks to prevent illegal trafficking of cultural property and their restitution based on international cooperation. 142 countries, including India, have ratified this convention. 

Unesco Convention, 1972 Adopted to ensure effective measures for ‘protection, conservation, and presentation of the cultural and natural heritage’ by parties to the convention. 194 countries have ratified it. 

UNIDROIT Convention, 1995 On stolen or illegally exported cultural objects emphasises restitution and return of cultural objects. Neither India nor Britain is a signatory. 

UN ‘Return or Restitution of Cultural Property to the Countries of Origin’ resolution, 2021 

So, there is no shortage of good intent. The challenge is in enforcing any of these conventions. 

Conventions have effect only if a country’s domestic laws affirm them. And even if they do, critically, they are not applicable retroactively. Most loot and plunder took place in the 19th and 20th centuries of colonialism. So, if a country like Britain decides to cancel a scheduled meeting with the Greek PM, rather than discuss the return of the Parthenon Marbles to Greece — as Rishi Sunak did with Kyriakos Mitsotakis in London last November — there is nothing that can be done. 

Voluntary negotiations, a long-drawn process, require patience and acknowledgement of past misdeeds. This is a more effective mechanism for restitution. France, which announced restitution of African artefacts in 2021, triggered Germany, the Netherlands and Belgium to also initiate steps to return parts of their national collections that were ill-gotten through their colonial pasts. 

Indian laws are aimed at preservation and preventing illegal export of any antiquity or art. But we have not done a good job. Unesco and a Tamil Nadu government survey point to regular theft of artefacts. We have also not documented all 58 lakh-odd antiques within the country. Interestingly, there was a PIL in 2017 in Supreme Court demanding that the Koh-i-noor diamond be returned to India from Britain. GoI informed the court that under the extant laws, Archaeological Survey of India (ASI) did not have any powers to do so. 

The petition was dismissed, with the court advising GoI to try diplomatic channels. It is through these channels that nearly 357 antiquities have been retrieved from Australia, US and Singapore in the recent past. 

While GoI, and the PM himself, should try and exercise diplomatic clout, one could heed what international arbitration lawyer Danilo Ruggero Di Bella suggested in his 2021 Cambridge International Law Journal article, ‘Repatriation of Artworks Throughout Investment Arbitrations’: that the bilateral investment treaty (BIT) route can be explored for return of cultural objects. 

A BIT could impose the obligation to repatriate foreign investments on the host-state. By not returning cultural property, the latter could be in ‘breach of the prohibition to expropriate foreign investments’. India is in the final stages of its FTA with Britain while parallel BIT negotiations are also going on. GoI, forefronted by Narendra Modi, can explore this avenue. 

Among items being exhibited in ‘Rediscovering Gems’ at the British Museum is an intaglio (a design incised or engraved into a material) of Minerva, Roman goddess of wisdom, justice and law. She, too, will nod in appreciation at this approach to get back what is ours. 


23. Protect Farmers, Fishermen in Developing Nations: India 
ET, 28 Feb. 2024 

At WTO negotiations on agriculture and fish subsidies on the second day of the 13th ministerial conference, New Delhi in its submission said agreements where richer nations acquire access rights to fishing in poorer countries’ waters must be treated as subsidies. 

AFPWTO 

India Tuesday sought a level playing field in agriculture citing that some developed countries were providing subsidies which were 200 times more than the support given by the developing countries to their farmers and called for introducing a moratorium on subsidies for fishing related activities beyond their exclusive economic zone (EEZs) or 200 nautical miles for a period of at least 25 years. Upping the pressure to secure the interests of farmers and fishermen of developing countries, India at the ongoing World Trade Organization (WTO) ministerial said the focus of talks on agricultural issues should not be restricted just to the trade interests of agri-exporting countries. 

At WTO negotiations on agriculture and fish subsidies on the second day of the 13th ministerial conference, New Delhi in its submission said agreements where richer nations acquire access rights to fishing in poorer countries’ waters must be treated as subsidies. 

“Food security is national security for us. India is keen on resolution of issues based on the principles of common but differentiated responsibilities and respective capabilities as well as Special and Differential Treatment,” said an official from the Indian delegation. 

India said that without a permanent solution on the public stockholding issue, the most critical and long-pending mandated issue at the WTO, developing countries’ fight against hunger cannot be won. “If any discussion on reduction of domestic support commitments takes place, the process should start with eliminating subsidies for countries who provide massive subsidies on a per capita basis,” the government said in a statement. 

“We are not blocking any consensus, but the approach has to be correct so that there is equity in fair trade. We are not willing to give up our sovereign rights,” the official said. 


(The reporter is in Abu Dhabi at the invitation of the commerce and industry ministry) 


24. Flipkart UPI Handle: Flipkart launches its UPI handle to boost India's digital economy vision 
ET Gov. 4 Mar. 2024 

On the Flipkart app, Flipkart UPI can be used to pay for any product or service, including e-commerce transactions, Scan and Pay to UPI ID, and recharges and bill payments. 

Flipkart launches its UPI handle 

E-commerce marketplace Flipkart on Sunday launched its Unified Payments Interface (UPI) handle to further enhance its digital payment offerings for all customers, including its 500+ million customers. 

With Flipkart UPI, users can now set up their own UPI handle for online and offline Merchant transactions within and outside of the Flipkart marketplace. For a distinctive customer experience, loyalty features such as Supercoins, Cashback, Brand Vouchers, Milestone benefits and more will be offered post the UPI launch. 

On the Flipkart app, Flipkart UPI can be used to pay for any product or service, including e-commerce transactions, Scan and Pay to UPI ID, and recharges and bill payments, the company said in a statement. 

In its first phase, Flipkart has partnered with Axis Bank, wherein users can register for UPI with @fkaxis handle for their digital transactions using the Flipkart app. 

"Recognising the dynamic digital landscape, the launch of Flipkart UPI seamlessly merges the convenience and cost-effectiveness of UPI with the trusted efficiency customers expect from us," said Dheeraj Aneja, Senior Vice President - Fintech and Payments Group at Flipkart. 

"At Flipkart, we are committed to delivering the best-in-class commerce experience to customers by offering safe and convenient payment options along with a wide array of rewards and benefits such as Supercoins, Brand Vouchers, and others." 

According to Aneja, "Flipkart UPI underscores our dedication to shaping a digitally-empowered society and reaffirms our role as a leading catalyst in India's digital evolution." 

It also introduces one-click and quick functionalities for recharges and bill payments, enhancing overall payment efficiency for the users. 

With the tagline, 'India's Most Rewarding UPI', the offering aims to provide customers an intuitive, safe, and convenient digital payment experience through its integrated checkout funnel and a slew of delightful incentives including the benefit of instant refunds, according to the company. 

In 2023, UPI processed over 117 billion transactions worth Rs 182.84 trillion, showcasing a dynamic landscape with participation from banks, payment service providers, and fintech companies, according to reports. 

"We continue to scale our growth in UPI with partnerships and innovations. Our partnership with Flipkart has come a long way from launching one of India's most successful co-branded credit cards to now launching the Flipkart UPI service," said Sanjeev Moghe, President and Head - Cards & Payments, Axis Bank. 

"Customers can now register for UPI with @fkaxis handle and can do all fund transfers and checkout payments using the Flipkart app. This solution is cloud hosted and hence provides one of the most stable and scalable UPI platforms for customers," he added. 


25. Changing healthcare landscape:Growth of top-tier wellness hospitals & medical treatments 
ET Gov. 7 Mar. 2024 

"The rise of luxury hospitals in India is not merely about providing exceptional medical care but creating an immersive and positive patient experience. By prioritising personalised care, luxurious accommodations, holistic wellness services, and cultural enrichment, these hospitals are redefining the standards of medical tourism." 

As the healthcare landscape continues to evolve, the emphasis on elevating patient experience is set to play a pivotal role in positioning India as a global leader in medical tourism. 

In recent years, there has been a significant uptick in the appeal of upscale medical facilities in India. Patients now seek top-tier medical treatments and a refined and comfortable healthcare experience. Today, India is at the convergence of world-class medical services with ample accredited healthcare professionals.  

With cultural attractions and a comprehensive patient-centric attitude, India is fast evolving as a premier destination for medical tourists seeking exceptional healthcare and a memorable experience. This trend towards luxury hospitals marks a significant shift in global medical tourism. The growing popularity of luxury hospitals only mirrors an evolution in patient preferences. Patients are no longer content with excellent medical care; they desire a sophisticated, comfortable healthcare experience. 

Adapting to Changing Market Demands 
Powered by a surplus of doctors, private healthcare facilities have grown to dominate the healthcare landscape in urban India. But in the last ten years, the focus on medical tourism and luxury healthcare has intensified as some states began imposing caps on charges for medical procedures. As a result, a strategic evolution set out to respond to the needs of the affluent and provide diversified offerings within the sector, thereby enhancing the viability of the promoters. 

Hence, with decades of reputation, state-of-the-art facilities, and meticulous health care, private hospitals are undergoing transformative journeys to change the tide in traditionally cost-conscious markets. 

Embracing Patient-Centred Care 
Healthcare architecture is evolving with a strong focus on patient-centred design. This approach primarily considers the softer needs of the patients and their families in the design process to create spaces tailored closer to their needs. 

As a result, patient-centred design prioritises accessibility, comfort, and empowerment, fostering dignity and control throughout the healthcare journey. This holistic method includes natural lighting, calming colour schemes, easy access to nature, inviting waiting areas, and well-conceived private patient rooms. The choice of colours is crucial in enhancing patient experience, improving recovery rates, and improving overall caregiver efficiency with visitor satisfaction. 

Luxury hospitals, hence, prioritise holistic patient care, emphasising not only medical treatment but also overall well-being. With State-of-the-art technological integration today, interactive information systems and telehealth services enhance patient engagement and convenience. 

Drawing from Evidence-Based Design 
The physical environment significantly impacts the patient experience. Evidence-based design principles advocate for abundant natural light, biophilic elements, scenic views, privacy, and modularity to enhance spatial quality. Large windows, courtyards, atriums, and landscaped terraces bring in natural light and create peaceful environments. 

In the Urban context, ‘Evidence-Based Design’, has resulted in robust outcomes that are responsive and responsible towards the wellbeing of patients and caregivers. Luxury hospitals in India boast opulent accommodations, providing a serene and comfortable atmosphere for patients and their families. 

From spacious private rooms to tastefully designed common areas, every aspect is curated to enhance comfort and contribute to a sense of well-being. From Yacht trips to the sea for healing, High-end Artwork in the atriums, retail CafĂ© and shopping outlets to scientifically responsive design-based shifts, the healthcare industry in India is balancing opulence with frugality to reshape the narrative of modern healthcare facilities. 

Transforming into a Global Market 
The luxury hospitals of today treat patients as individuals with unique needs and preferences, fostering a sense of trust and connection. When patients enter the hospital, they are greeted with warmth and a commitment to understanding their concerns, creating a foundation for a positive experience. 

By diversifying the local market's needs and positioning itself as a global player in the thriving health and wellness tourism industry, India continues to merge traditional healing practices with modern medical technologies. The allure of luxury healthcare experiences is set to redefine the essence of medical tourism by blurring the lines between hospitality and healthcare at its best. 

In conclusion, the rise of luxury hospitals in India is not merely about providing exceptional medical care but creating an immersive and positive patient experience. By prioritising personalised care, luxurious accommodations, holistic wellness services, and cultural enrichment, these hospitals are redefining the standards of medical tourism. 

As the healthcare landscape continues to evolve, the emphasis on elevating patient experience is set to play a pivotal role in positioning India as a global leader in medical tourism. 

(The author is Associate Director at Creative Designer Architects: Views are personal) 

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