AAPI: January 2022

DELHI, 20th JANUARY 2022

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Semiconductor manufacturing: Taiwan, Japan eye 'all round cooperation' on chips
22. Russia's latest nuclear-powered icebreaker to boost India's Arctic plans via Northern Sea Route
23. Indian startup roped in by London mayor's office to set up gaming hub
24. How Infosys is strengthening its cybersecurity posture
25. The Indian Start-Up ecosystem building a unique and conducive environment for GCCs to thrive

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DELHI, 20th JANUARY 2022

NEWSLETTER, 20-I-2022

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1.1. Christmas in Goa encompasses the world

Mint Lounge, Dec. 24, 2021, V.M.

Nothing much has changed in Goa since the French adventurer François Pyrard de Laval spent the holiday season here over 400 years ago.

“All the streets are then hung with lanterns,” he writes, in the account of his escapades first published in 1611. “On Christmas Day, in all the churches are represented the mysteries of the Nativity, with diverse characters and animals. Everyone goes to see it. Even in most of the houses and at the cross-streets they do the same; it is a prettier sight at that season there, than here (in Europe).”

Rocket forward into 2021 and I feel exactly like that long-extinct Frenchman. After long decades assimilating in the great cities of the West, where I have experienced one hyper-commercial Christmas after another in Paris, London and New York, it is my firm conviction that the end-of-the-year celebrations are unbeatably gracious and meaningful in this ancient slice of the Konkan coastline. To be sure, there isn’t nearly as much gloss, but that is more than made up for with bonhomie and genuine joie de vivre. Best of all is that there are no bounds to the happiness. Everyone of every age from every community shares the fun in full measure. Joy to the world? It is the very essence of Christmas in Goa.

“Nobody is left out of the holiday spirit here” says Damodar Mauzo, the beloved eminence of Goan letters, who sparked state-wide exultation when he won the Jnanpith Award—the paramount recognition for contributions to Indian literature—earlier this month.

The great Konkani litterateur spent decades operating his family’s general store in the South Goa beachfront village of Majorda, and every 24th December evening without exception, he says: “I used to close it to go visit my Catholic friends—at least 10 homes—and enjoy the seasonal sweets. My favourite is dodol (the jaggery and coconut milk cake that came to India centuries ago from South-East Asia) but I also love cakes like that made by (his friend and translator) Xavier Cota’s wife.”

Mauzo recounts how his family participates in all the details of the celebrations in their village: “Of course, just like all our neighbours, we hang a Christmas star in the balcao. My daughters really love this time of year, and when they were growing up, they would always make the crib. After they grew a bit older, they too would sometimes accompany the other children to Midnight Mass, and enjoyed it very much.”

The various customs that Mauzo is describing comprise the heart of Goan social culture across every sectarian divide: an extensive range of painstakingly handmade delicacies, adults and children taking the time to crisscross their vaddos to visit their neighbours and friends, and the wonderful creativity and craftsmanship spilling over from every household--during Ganesh Chaturthi it is the matoli of fruits and flowers, then the Narakasur effigy on Diwali, followed by cribs and stars in December.

At Christmas, in addition to all this, there is an apex event. Everything and almost everyone comes together on the night of the 24th to enact the part-solemn, part-giddy-ritual excitement of dressing your best, and trooping to the parish church for the music-filled service to usher in the nativity. It only ends in the wee hours of the 25th, but no one heads home despite the chill of the December night air. Instead, there are only warm embraces, greetings, lashings of coffee and slices of cake.

Every bit of that is open to everyone, and what is true of the Mauzos in Majorda plays out identically across Goa. Here, the boundary walls between ostensibly different religions have remained conspicuously low, with neighbours unselfconsciously sharing the same universe of meaning in ways that can be incomprehensible to outsiders.

The acclaimed American anthropologist Robert Newman, who first visited Goa in 1965, soon after the defeat and annexation of Portugal’s 451-year-old Estado da India and has proceeded to study the state for decades, writes that “though in content the Catholic and Hindu traditions differ greatly, in form and style they have tended to move together over the past few centuries in Goa. There has emerged a specifically Goan style, which has helped forge a common Goan identity despite religious differences.”

Newman notes, “This development has been more pronounced among the lower castes, but large numbers of higher-caste Hindus and Catholics also take part in certain key religious festivals, worshipping and honouring the same deities—in particular, the goddess Shantadurga and several versions of Our Lady.”

This deep-rooted syncretism permeates all aspects of Goan faith practices, and can come across as surreal, even contradictory, by adherents to orthodoxy. Nonetheless, its powerful purchase is undeniable: All important feasts and festivals at every major site of worship in the state are thronged by sincere devotees of every background. Limitless co-mingling is an archetypical feature of the culture, readily evident in music, architecture, food, and every artistic flowering.

Here, we have the salutary examples of the great Goan painters of the 20th century, like Francis Newton Souza, the livewire modernist who kick-started the Progressive Artists Movement in Mumbai in the 1940s, whose paintings of altars bristle with tantric symbology. His close contemporary, the great abstractionist Vasudeo Gaitonde—the two friends shared ancestral roots in North Goa—considered himself a non-denominational follower of St. Francis of Assisi.

Perhaps most illustrative is the unique bridge figure of Angelo da Fonseca, the grandee from the island of Santo Estevam, who studied at the colonial JJ School of Art in colonial Bombay around 100 years ago but quit—and transplanted himself to Bengal—because he “wanted to be a shishya of the best Indian artists of the time”. By the end of the 1920s in Santiniketan, he was the prized protégé of Nandalal Bose and Abanindranath Tagore, and spent the next four decades (he died in 1967) painting an astonishingly beautiful oeuvre of Indian Christian iconography that draws deep from Islamic, Hindu, Jain and Buddhist themes as well as the Western canon.

Fonseca’s artworks effortlessly represent East and West simultaneously, with great harmony. They are the perfect icons for Christmas in highly cosmopolitan Goa, where many other conventions have evolved out of borrowings from around the world, that are derived from centuries of functioning as one of the earliest crucibles for what we call globalisation.

In her excellent Cozinha De Goa: History And Tradition Of Goan Food, the historian Fátima da Silva Gracias writes about the emblematic consoada (the original Portuguese word has become Kuswar in Konkani), where families labour for weeks to prepare “a plethora of sweets and savories”. These are meant to “be sent in small quantities on a tray—a little bit of everything prepared in the house…covered with a tray-cloth made of crochet or lace. Those who received it sent back sweets prepared by them.”

Gracias notes that the festival lunch is usually “sumptuous”, with “Goan, Malayan, Portuguese and Anglo-Indian recipes blended together”. In addition, “Christmas confectionery here draws from diverse cultures—Portuguese, Indian, Arabic, Malaysian and Brazilian. The Hindu “food of the gods” also has its own influence in the form of nevreo, kulkuls and shankarpalis.”

All this would have been perfectly recognisable to Pyrard de Laval from the early 17th century, when he wrote about “tables laid with fine white napery, and covered with all manner of sugar-plums, dry comfits, marchpanes, which they call Rousquillos, fashioned in a thousand ways”.

But if all these things are unchanged, what is different in Goa in 2021?

Like everywhere else, less time and more distractions have diluted the intricate cultural fabric. There has been a huge influx of settlers from other parts of India and the world, most of whom do not care to participate, and often resent what they perceive as native insularity. The Goans themselves have scattered wildly, and though they do reconvene in substantial proportions at Christmas, it is often in an array of hybrid identities: Kiwis and Canadians and Bomboicars sharing the table.

Personally, I embrace it all.

As far as I am concerned, it is perfectly suitable that the world comes to Goa at Christmas, because Christmas in Goa encompasses the world with great felicity. When my sons set up our tree at home, they adorn it with cherished reminders of family scattered on four continents, and our own travel memories from Assam to Kashmir and several countries. We listen to holiday music in Konkani, Latin, German and Spanish and reserve cult status for Run-DMC’s rollicking rap classic, Christmas In Hollis.

Come midnight at Christmas Eve, you will generally find us in Fontainhas, the centrepiece of Old Panjim, for Midnight Mass in the street in front of the ancient St Sebastian’s Chapel. In this gorgeous Latinate atmosphere, all the surrounding houses set out hot drinks and snacks for celebrants to share afterwards.

There is laughter, camaraderie and good feelings that last right until the following year. You can keep your Rockefeller Center and Regent Street. Nothing beats Christmas in Goa.

1.2. Women can thrive if IT companies change at grassroots level

ET CIO, Dec. 27 2021, Protima Achaya

In a recent report by Kaspersky, titled ‘Women in tech, where are we now? Understanding the evolution of women in technology’, it was found that around 76% respondents felt that the effects of the Covid pandemic delayed their career progression. The report also stated that more than half (54%) felt that for gender equality to become a reality, remote working structures were the way to go.

By Over the course of a decade, the way women have paved their way within the tech industry is commendable. The fact that the industry has witnessed a steady rise of women in technology is a great one. While there has been tremendous progress in this regard, we also need to acknowledge the efforts that have been made to get to where we are at. Today, conversations around diversity, equality, and inclusion have become important boardroom discussion points. Organisations have recognised the reality that having a diverse workforce does lead to better performance, with many companies having taken positive steps towards bridging the diversity gap — gender being one among those. There is still a long way to go through before we can confidently say that women are fairly represented within the technology industry.

Drawing on these insights, there is a clear indication that for women to thrive, there needs to be change driven at the grassroots level within organisations. Backed by strong data as well as voiced sentiments, now is the time for organisations to walk the talk, rethink, and redefine roles which were traditionally driven by gender.

Walk the talk: Proactive measures to increase women representation

At a foundation level, organizations may take active measures to increase the hiring of women and encourage them to join the workforce. By getting the message out in the public domain, organisations stand to earn tremendous goodwill which will, in turn, translate into interest from women to explore newer opportunities. The buck does not stop with merely hiring of women as a means of bridging existing gender gaps.

At present, the percentage of women in leadership roles across the technology sector is fairly low. Invite women to the decision-making table, and give them a chance to make a difference to the rapidly booming industry. Their voices would lend a unique perspective to ongoing conversations, and can open doors to newer ideas and unexplored avenues.

Leading from the front for a gender-redefined organisation

With this, women have the potential to become the face of the organisation, putting the latter in a novel situation where peers sit up and take notice. Within the Indian technology space, we have several women leaders the world looks up to. As we, as a sector, progress towards creating a new generation of women leaders in technology, gender-redefined organisations will fast become the new normal.

With this, what we can expect is greater representation of voice, more opportunities for growth, a level playing field, and a shattered glass ceiling. We also need to be cognisant of the fact that this is easier said than done. As a result of decades of societal conditioning, gender will have a role to play in workplace dynamics. Amid clarion calls for change, we need to move towards a gender-blind workplace — one which evaluates resumes without names to minimise chances of bias seeping in. By promoting such practices, we can create workplaces that are fair, and have a well-balanced representation of both the sexes.

At the end of the day, for gender-redefined workplaces to become a reality, change needs to begin at the top. Leaders could look at holding themselves accountable for driving change, and triggering a positive trickle-down effect within the company through proactive measures that support women. As the saying goes, “Actions speak louder than words.” This holds particularly true when pledging and working towards a technology sector that is driven by women, which I hope to see become a reality in the near future.

The writer is India HR head & APAC talent acquisition at NetApp

2. PM Modi to e-launch 11 new government medical colleges in Tamil Nadu

ET Gov. 11th Jan. 2022

The new medical colleges are being established at an estimated cost of about Rs 4,000 crore, of which around Rs 2,145 crore is funded by the Centre.

In a major infrastructure push in Tamil Nadu, Prime Minister Narendra Modi will launch as many as 11 new government medical colleges and the new campus of Central Institute of Classical Tamil in Chennai via video conferencing on Wednesday. The new projects are largely funded by the Union government.

The new medical colleges are being established at an estimated cost of about Rs 4,000 crore, of which around Rs 2,145 crore has been provided by the Union government and the rest by the Tamil Nadu government, the Prime Minister's Office said in a statement.

Among the Tamil Nadu districts that will get the new medical colleges include Virudhunagar, Namakkal, Nilgiris, Tiruppur, Thiruvallur, Nagapattinam, Dindigul, Kallakurichi, Ariyalur, Ramanathapuram and Krishnagiri.

The new infra push in the healthcare sector is in line with PM Modi’s affordable medical education and to improve health infrastructure in across the country.

According to the government note, the new medical colleges, with a cumulative capacity of 1,450 seats, are being established under the centrally-sponsored scheme of 'Establishing of New Medical Colleges attached with existing district/referral hospital'.

Under the scheme, medical colleges are established in districts, which do not have either a government or private medical college, the PMO statement said.

“The establishment of a new campus of Central Institute of Classical Tamil (CICT) in Chennai is in line with the prime minister's vision to protect and preserve Indian heritage and promote classical languages,” the PMO said.

The new campus is fully funded by the Union government and is built at a cost of Rs 24 crore. CICT, which was operating from a rented building so far, will now function from a new three-storey campus.

The new campus will be equipped with a spacious library, an e-library, seminar halls and a multimedia hall, the statement said. An autonomous organisation under the Union Ministry of Education, CICT is also contributing to the promotion of classical Tamil by doing research activities so as to establish the ancientness and uniqueness of Tamil language.

The institute library has a rich collection of over 45,000 ancient Tamil books. To promote classical Tamil and support its students, the institute indulges in academic activities like holding seminars and training programmes, granting fellowship, etc., the statement said.

The new medical campuses will provide an efficient working environment for the institute in its pursuit of promoting classical Tamil across the world, the statement said.

3. Edtech draws up a code of conduct

ET CIO, 13 Jan. 2022

India's largest edtech startups, including Byju's, Unacademy, upGrad and Vedantu, have grouped together to adopt a self-regulatory code and will adhere to a "common code of conduct", they said in a letter to Union Ministry of Education.

New Delhi | Bengaluru: India’s largest EdTech startups including Byju's, Unacademy, upGrad and Vedantu have grouped together to adopt a self-regulatory code and will adhere to a “common code of conduct,” they said in a letter to the union ministry of education sent on Monday.

This move by the consortium of fifteen companies—that have set up an autonomous body called the ‘India EdTech Consortium’ under the aegis of the Internet and Mobile Association of India (IAMAI)-- comes at a time when the threat of regulatory oversight looms large over the fast-growing sector. Last week, the union education minister Dharmendra Pradhan, said that his office is in talks with the ministry of law as well as the ministry of electronics and information technology to work out a regulatory policy for the EdTech sector.

In its missive to the government, the industry grouping said it would also establish “a two-tier grievance redressal mechanism to ensure that business is conducted with high transparency and with customer interest in mind.”

ET has reviewed a copy of the letter.

Other EdTech firms that have joined the IEC include Careers 360, Harappa Education, Times EdTech & Events Ltd, Simplilearn, Doubtnut, Classplus and Toppr, with more companies expected to “come on board,” sources told ET adding that the managing committee for the grouping will be finalised this week.

This move, a first by Indian EdTech companies, comes amid a growing chorus for regulation of the sector, which has gained from a major tailwind since the onset of Covid-19 in India with students signing up for online courses in huge numbers.

Karti Chidambaram, Member of Parliament for Sivaganga in the Lok Sabha pitched for the need to regulate the online education sector in Parliament last month.

Soon after, the government spoke about the need to regulate the sector.

“We are not against their business growth. But there cannot be a monopoly and students can’t be exploited,” minister Pradhan said last week.

Core areas of concern

Industry executives in the know told ET that the EdTech firms are primarily focusing on addressing two core areas --no misleading advertisements and avoiding misleading payment structures—as they seek to assuage government ire. The code is also aimed at ensuring appropriate and ethical sales practices, marketing communication, fair practices on financing, loans and refunds.

“The top companies have held several discussions on these issues following the government’s note. A major area that needs to be addressed is how these online courses are sold and parents should know the full details of it. The new self-regulatory code will aim to address that,” said one person cited above.

“With the sole purpose of improving the delivery of education services, it is now crucial for us to foster and sustain stakeholder trust by safeguarding their interest,” said Mayank Kumar, cofounder and MD of upGrad and cochair of the EdTech committee at IAMAI.

The industry executives are also looking to ensure fair and transparent functioning of a robust grievance redressal mechanism, with escalation to an Independent Grievance Review Board with independent members, sources added.

For instance, consumers have alleged that some education companies have sold certain courses on a monthly renewal basis but the financing or loan arranged for it extends for up to three years.

Amid the surge of Covid19 in the last two years, online education has emerged as a connecting bridge to access flexible and quality education for students as well as working professionals.

upGrad was one of the new EdTech startups to have become a unicorn in 2021. Elsewhere, industry leader Byju’s spent more than $2 billion on acquisitions buying Aakash Institute and Great Learning among others even as it continued its fund-raising spree.In total, EdTech startups saw funding of over $4 billion on 2021 and $2.1 billion in 2020 compared to $393 million in 2019 and $675 million in 2018, according to data from Venture Intelligence.

Divya Gokulnath, cofounder of Byju’s said, “We are completely aligned with the government's principles on safeguarding consumer interests and welcome the creation of guidelines that help students reach their learning goals in a manner that makes them future ready and conceptually strong."

Some of these startups are also actively seeking to hire senior public policy executives in the national capital to liaison with government officials as the sector gains more spotlight.

"We are not against their business growth. But there cannot be a monopoly and students can't be exploited," minister Pradhan said last week.

Industry executives in the know told ET that the edtech firms are primarily focusing on addressing two core areas—no misleading advertisements and avoiding misleading payment structures—as they seek to assuage government ire. The code is also aimed at ensuring appropriate and ethical sales practices, marketing communication, fair practices on financing, loans and refunds.

4.1. 83% jump in hirings: FY22 could be IT's best ever, shows data

IBEF, Jan. 06, 2022

The Great Resignation has turned into the Great Reshuffle with many workers reshuffling their careers and companies pushing hiring efforts. India’s top five IT companies could see FY 2021-22 to be the best ever for net hirings. The latest analysis by Jefferies suggests that in FY22, Tata Consultancy Services (TCS), Infosys, HCL Technologies (HCL Tech), Wipro, and Tech Mahindra (TechM) will add a combined 150,000-160,000 employees from 87,000 in 2020-21, a growth of 83%. The previous record high was of 90,000 employees in 2018-19, which was shattered in the first half of FY22 as they hired 110,000 employees. This has led to increased salaries due to which margins may be impacted in the next few quarters. Jefferies expects highest margin decline of Wipro and HCL Tech in the third quarter of FY 22.

TechM Chief Executive Officer C P Gurnani acknowledged the talent crunch due to increased demand for IT professionals as corporates digitize their business and stated that the consumption has increased from four sources which are IT service providers, global technology players, start-ups, and even corporates. Jefferies-ACE’s analysis shows that there is a formal sector employment boom across most BSE500 companies and that in the second quarter of FY22, employee costs rose 18%, year-on-year. They had risen 16.7% in the first quarter of FY22. Larger companies show employee costs rise 18%-19% while that figure was at least 8%-10% for smaller companies

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

4.2. Centre banks on this new policy to strengthen tourism sector

IBEF, Jan. 06, 2022

India has declared that it will provide five lakh (500,000) free e-tourist visas to launch inbound travel, and the country is now opening up for international travel in a calibrated manner, according to a government release.

At the inaugural session of the 'Tourism Week' at the India Pavilion in Expo2020 Dubai, Rakesh Kumar Verma, additional secretary, Ministry of Tourism, said that all airports, railways, and road transport, as well as tour operators and hospitality operators, have taken adequate measures for public safety.

The Ministry of Tourism, Government of India, is hosting a 'Tourism Week' from January 3rd to January 15th, which includes sessions presided over by leaders from the Ministry of Tourism and states such as Rajasthan, Madhya Pradesh, Goa, Punjab, Odisha, and Arunachal Pradesh, among others.

The policy will establish five missions: the National Green Tourism Mission, the National Digital Tourism Mission, the Sectoral Mission on skill development, the National Mission on Destination Management, which will focus on ensuring synergy and coordination between public and private stakeholders, and the National Mission on Tourism MSMEs, which will support and facilitate start-ups, micro, small and medium enterprises.

Various incentives and efforts will be launched by the Ministry of Tourism in collaboration with tourism stakeholders to encourage and facilitate travels to India, he said. Next year, India will host the G-20 summit, and several meetings on various topics will be held across the country in various places.

Travel and tourism are a critical sector of the Indian economy and has a significant contribution to the Indian economy, according to Aman Puri, the consul general of India in Dubai and deputy commissioner-general for India at Expo 2020 Dubai.

"By 2030, we are expecting this sector to contribute upwards of US$ 500 billion to our GDP. Expo 2020 Dubai is the first Expo in the MEASA (Middle East, Africa and South Asia) region, and Indian visitors are the largest in terms of visitors by nationality at the Expo.

He went on to say that tourism between India and the UAE is one of the busiest in the world, thanks to the 3.3 million Indian diasporas in the UAE. While UAE to India sees 50,000 tourists a year, UAE receives over 6 million Indian tourists.

"We would like to urge the Dubai Tourism Board to continue sharing India’s story and continue marketing various aspects of India’s tourism sector such as Sustainable, Spiritual, MICE to name a few," said Puri.

Hoor Al Khaja, associate vice president, international operations for the department of economy and tourism of Dubai said, Indian nationals form a very important part of the city's multinational fabric accounting for the largest proportion of the expatriate population in the UAE. "We are pleased to see that India’s iconic pavilion continues to be one of the most visited pavilions and a major attraction amongst visitors."

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

5. Policy initiatives to shape India into global manufacturing hub

The Economic Times, 7 Jan. 2022

The PM Gati Shakti - National Master Plan (NMP) which brings together 16 ministries to enable integrated planning and coordinated implementation of infrastructural connectivity, is expected to lower logistics costs significantly. The corporate tax rate for new manufacturing has been reduced to 15%.

The government has unveiled a $27 billion worth of PLI scheme for 13 sectors to help integrate Indian companies into the global value chains and tap into the opportunity.

Disruption in the global supply chain has opened up opportunities for large-scale manufacturing in India, aided by significant policy initiatives such as production-linked-incentive (PLI) schemes and low corporate tax rates for new manufacturing, among others.

Structural issues like cost of land and electricity, lack of adequate infrastructure and shortage of skilled manpower could play the spoilsport if not addressed on time, says industry.

"MNCs that manage supply networks have acknowledged the necessity to hedge against future events and have decided to geographically disperse their supply chains. As a result, India has reaped significant benefits," NITI Aayog CEO Amitabh Kant said.

The government has unveiled a $27 billion worth of PLI scheme for 13 sectors to help integrate Indian companies into the global value chains and tap into the opportunity. The PM Gati Shakti - National Master Plan (NMP) which brings together 16 ministries to enable integrated planning and coordinated implementation of infrastructural connectivity, is expected to lower logistics costs significantly. The corporate tax rate for new manufacturing has been reduced to 15%.

"There couldn't have been a better time for the government to announce various schemes which will act as enablers to create a viable eco-system for companies to invest in advanced technologies in India," Rajesh Menon, director-general of the Society of Indian Automobile Manufacturers said. "Auto industry in India is also poised to become a major player in the global supply chain and these schemes would provide the necessary impetus in this regard," Menon added.

The MSME sector has also gained in strength and seems in a position to support big investment. "MSMEs have seen a remarkable improvement in access to finance and power and significant improvement in ease of doing business with introduction of GST," Anil Bhardwaj, secretary-general of the Federation of Indian Micro and Small & Medium Enterprises said.

Vikram Kirloskar, chairman (manufacturing council), the Confederation of Indian Industry, feels it is time for the industry to step up. "Government measures can give you added incentive but it is upon manufacturers to improve upon scale and quality."

The government and businesses see the opportunity but acknowledge the need for improvement in the enabling framework. "In the medium term to long term, India will have to address its structural issues," Kant said. In the short term, he believes it is extremely important to enhance ease of doing business in manufacturing.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

6. CSC, Infosys tie up to upskill 6 cr citizen in rural India

ET Gov. Dec. 26, 2021

CSC e-Governance Services India and IT giant Infosys have collaborated to impart digital skills among six crore students of the age of 10 to 22 years

CSC e-Governance Services India and IT giant Infosys have collaborated to impart digital skills among six crore students of the age of 10 to 22 years, mainly in rural areas in the country. "Common services centres (CSCs), an SPV under the Ministry of Electronics and IT, has tied up with leading IT company Infosys to empower students in the age group of 10 to 22 years with digital skills through Infosys Springboard, a digital platform that helps accelerate reskilling and improves employability," according to a statement.

According to the statement through this engagement, CSC and Infosys will work together to upskill students and learners from underprivileged communities in rural and semi-urban areas across India and help them develop vocational and professional skills.

CSC e-Governance Services India Managing Director Dinesh K Tyagi in the statement said, "The foundation of CSC is based on education. We have a mandate of training six crore rural citizens in digital skills under the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA)."

He added that Infosys Springboard will help us bridge the digital divide and add value to its goal of inclusive education through CSCs.

Amid an increasing need for skill enhancement of students to boost market readiness and employability in a digital era, Infosys and CSC will work together to bridge the digital divide, particularly in rural and semi-urban areas, through high-quality learning programmes, Tyagi added.

Thirumala Arohi, senior vice-president and head (education, training and assessment) at Infosys, said: "The future of a truly digital India relies on the digital literacy of today's younger generation. We are thrilled to embark on this skilling initiative with CSC and contribute to the development of a digital economy."

Arohi added that providing equitable access to educational resources and ensuring technology adoption at the grassroots are vital, not only to equip young Indians to be future-ready but also to nurture long-term social and economic prosperity.

"We believe this collaboration with CSC will help us provide meaningful opportunities for millions of learners from underserved communities across the country," Arohi said.

Powered by Infosys Wingspan, a next-gen learning solution, Infosys Springboard aims to enhance the digital literacy of students and help them be competent in digital technologies and supporting life skills. PTI KKS HRS hrs

7. India can generate USD 813 bn in revenues from agri, food sector by 2030: Report

The Economic Times, Dec. 25, 2021

With an investment of USD 272 billion in agritech and allied segments by 2030, India can generate USD 813 billion in revenue creating 152 million jobs, making it the largest private sector industry in the country, according to a report.

AgenciesIndia can generate USD 813 bn in revenues from agriculture. With an investment of USD 272 billion in agritech NSE 0.80 % and allied segments by 2030, India can generate USD 813 billion in revenue creating 152 million jobs, making it the largest private sector industry in the country, according to a report. With agriculture continuing to remain the mainstay of economy for the country, investment in agritech and allied segments can transform the face of Indian agriculture with far-reaching implications for food security and sustainable farming solutions, according to a report, titled 'Investing for Impact: Food, Agri and Agritech', by Aspire Impact.

In the past decade, India attracted about USD 9 billion in FDI investments in the agriculture sector, said Amit Bhatia, founder of Aspire Circle and creator-Impact Future Project.

He added that this decade brings an opportunity for India Inc to take advantage of the massive untapped potential this sector holds and transform it to be sustainable and future-ready.

"With smart innovations, infrastructure and policy support and newer business models, the top-10 ideas researched by the IFP community can attract USD 272 billion in investments and generate USD 813 billion in revenue, impacting 1.1 billion lives," he added.

The report has been authored by leading agritech experts, industry leaders, academics and thinkers.

The report further said India has its share of challenges when it comes to agricultural practices, including mechanisation levels, which is at 40-45 per cent unlike 90 per cent in the developed economies.

The country has been estimated to be at the biggest production risk with 68 per cent of the cultivation area being directly dependent upon the monsoon accounting for 40-45 per cent of total agriculture production it noted.

With a gap of 3.2 million tonnes in cold storage, the food processing industry incurred a loss worth USD 14 billion in 2018.

At the same time, the report stated that 55 per cent of the country's forests are prone to fire with 70 per cent having no natural regeneration.

The demand for key food grains is expected to grow at an annual rate of 3 per cent against the projected population growth of 2 per cent further underlines the challenge that the country faces today.

To meet its dairy needs, India would require around 600 million tonnes of milk per year in 2060 and onwards, it said, adding that significant investments in the sector along with a policy push is needed to ensure transformation in agriculture practices and ecosystem.

With agritech start-ups and innovative models speculated to dominate the sector, India Inc has already started paving this path to change, it said.

8.1. Punjab records 117% growth in patent filing

ET Gov. Jan. 5, 2022

The top three states in terms of patent applications in 2019-20 were Maharashtra (4,741), Tamil Nadu (3,546) and Karnataka (2,230).

As per the Intellectual Property India Annual Report 2019-20 released last week, Andhra Pradesh has filed 484 patents in 2019-20 compared to 321 in 2018-19. The state has maintained its 11th position in the country.

Punjab recorded 117% growth during this time by filing 1,435 patents. The top three states in terms of patent applications in 2019-20 were Maharashtra (4,741), Tamil Nadu (3,546) and Karnataka (2,230).

Other states and Union territories that showed a noteworthy jump were Chandigarh, Chhattisgarh, Odisha and north-eastern states.

On the whole, a total of 56,267 applications were filed in the country in 2019-20, reflecting an 11.1% increase compared to the previous year. There was a modest to high growth in almost every field of inventions. The fields of biochemistry, biomedical engineering, bio-technology, chemical, communication, computer science, electronics, food, metallurgy, and polymer technology particularly exhibited a growth of 15-25%.

Of the 56,267 applications, Indians filed 20,843 patents, while the foreign applications contributed to the lion’s share of this figure at 35,424. Domestic filing was about 37% of the total applications filed as compared to 33.6% during the last year.

Andhra University vice-chancellor prof PVGD Prasad Reddy said he is happy to see the state achieving 50% growth in patent filings. “This is more than 4.6 times the national average growth reported in 2019-20. AU as the state IPR nodal agency conducted aggressive awareness programmes in the last one-and-a -half years,” said Prof. Reddy.

DPIIT-IPR chair professor, Andhra University and state IPR nodal officer Prof H Purushotham said Andhra University prepared a road map to position Andhra Pradesh in the top five list in the next three years. “The university has decided to bear all costs involved in filing IP rights under this new policy,” said Prof Purushotham.

8.2. Amway sees India as one of top 3 priority mkts, aims scaling up Indian biz to 20K cr in long term

IBEF, 23 Dec. 2021

Amway, one the world's largest direct selling company, has high hopes for India, aiming to grow its business to Rs. 20,000 crores (US$ 2.65 billion) in the long run after naming India as one of its top three global priority markets, alongside the United States and China, according to its global CEO Milind Pant.

The company, which will celebrate 25 years of operations in the country in the next two years, believes it can grow its business in the country ten times faster than it is now, and that it will not take another 25 years to do so.

He said the Covid-19 pandemic has exacerbated two trends: people, particularly women and youth, turning towards micro-entrepreneurship for additional income across the country, especially in smaller towns, and a greater interest on holistic wellbeing, both of which bode well for Amway.

From its (almost) 25-year existence in India, Amway believes it is now able to integrate these two trends of micro entrepreneurs giving health solutions through the communities that they're creating.

"This is the conversation we're having with the India team about how we take the India business from a 2,000 crore (US$ 265 million) business today to a 20,000 crore (US$ 2.65 billion) business over the long run," he added.

When quizzed on how long it will take Amway to achieve that, Pant said "As soon as Amway can accomplish it." "I don't think we'll need 25 years to get there... In the year 2020, we've grown. We grew in 2021, and we're certain that we'll continue to grow in 2022 and beyond, and we'll be worth 20,000 crores (US$ 2.65 billion) in less than 25 years."

"Our India business has 10 times the potential that it has," he remarked, with confidence. "This can be benchmarked with any of our successful markets in Asia, like Thailand, China, or Korea, where our businesses have similar scale."

Pant believes that when the company grows, the number of its partners will expand dramatically as well.

"In India, there are 5 lakh micro enterprises. That number needs to expand tenfold to provide chance to another 4.5 million to 5 million people " he stated.

When asked about the investments needed to attain said scale, he responded, "We have been ahead of the curve in our investments in India, and we will continue to be ahead of the curve as such. Amid the pandemic, we recently invested in four new R&D labs in India, spread across various locations in India."

Amway has already pledged a Rs. 1,000 crore (US$ 132.4 million) investment in India, with 600 crores (US$ 79.4 million) going towards manufacturing and 170 crores (US$ 22.5 million) earmarked for R&D, manufacturing automation, and innovation over the next two to three years.

Pant, speaking about how Amway India has embraced digitization in the wake of shifting consumer behavioral patterns brought on by the pandemic, said that two years ago there was a digitization gap between the US, China, and India, particularly between China and India, but now the distance was not much.

He noted that online sales in India had increased to 70% of total sales from around 30% two years ago, leading credence to his digitization comment.

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

9. Telangana spent Rs 2.7 lakh cr on agri, allied sector in 7 years

ET Gov. 12 Jan. 2022

The government of Telangana spent Rs 2.7 lakh crore on agriculture and allied sectors during the last seven years, state minister and TRS working president K. T. Rama Rao said on Monday.

Of the total amount spent, Rs 50,000 crore were deposited in the bank accounts of farmers under Rythu Bandhu, the investment support scheme.

Telangana Rashtra Samithi (TRS) leader dared both the BJP and Congress to show if any state ruled by them has done the work on par with Telangana in agriculture and farmers' welfare.

"I am challenging both the parties to show if any state ruled by them has done what Telangana did in seven years under the leadership of K. Chandrasekhar Rao," he said and slammed the leaders of both the opposition parties for criticising the TRS government.

He challenged the two parties to show if they have any scheme like Rythu Bandhu. "What Telangana does today, India does tomorrow," he remarked while referring to some schemes announced by the Centre and some state governments after drawing inspiration from the schemes launched by Telangana.

Stating that TRS stands for Telangana Rythu Sarkar, KTR said no other state in the country implemented the kind of schemes launched here for the welfare of farmers.

"But some political tourists are coming here and criticising us. They just speak whatever they like. Let them show the data, if they have," the industry and information technology minister said in an obvious reference to series of visits by top BJP leaders over the last one week.

Madhya Pradesh Chief Minister Shivraj Singh Chauhan and Assam Chief Minister Himanta Biswa Sarma were among the BJP leaders who visited the state and targetted TRS government.

KTR was addressing a news conference on the state reaching a milestone with the money deposited in farmers' bank accounts under Rythu Bandhu reaching Rs 50,000 crore since the launch of the scheme in 2018.

The government is crediting Rs 5,000 per acre into the farmers' bank accounts before the beginning of every crop season.When the scheme was launched, the government was providing Rs 8,000 per acre per year (for both Rabi and Kharif seasons). The amount was enhanced to Rs 10,000 from 2019.

For the coming Rabi season, the disbursement of Rs 7,646 crore began in the last week of December. The cumulative assistance under the scheme touched Rs 50,000 crore mark on Monday.

"This day will be written in golden letters in the history of agriculture," he said while thanking Chief Minister KCR on behalf of 65 lakh farmer families and 60 lakh TRS workers. He said the week-long celebrations to mark the occasion have been extended till Sankranti.

He recalled that under undivided Andhra Pradesh the conditions of farmers were miserable. The state was number one in the country in farmers' suicide and was at the bottom in procurement of agriculture produce. Farmers were raising loans just to dig borewells and were still not getting water. Even a farmer with 10 acres of land was forced to migrate to the city for livelihood. There was no electricity and the lands of farmers had no value.

KTR claimed that the agriculture sector has undergone a total transformation in the last seven years thanks to the schemes launched by KCR. The underground water table has improved and Telangana today is a centre for training of IAS officers in underground water management. The value of farmers' land has gone up manifold.

He said according to NCRB report, Telangana is number one state in reducing suicides by farmers. He claimed that Telangana has become 'Annadata' or food provider to the country. "Today Telangana is producing so much paddy that even the Food Corporation of India is unable to procure it," he said.

KTR said the KCR government completed Kaleshwaram, which is world's largest lift irrigation project and took several other measures including waiver of farm loans.

10. Startups: India's year of the unicorn: Startups in spotlight of 2021 tech boom

ET CIO, Jan. 1st, 2022

This year 44 Indian unicorns -- privately held startups valued at more than $1 billion -- were minted as investors piled money into a country long overlooked despite its vast potential.

Mumbai: Sumit Gupta has had a big year -- turning 30, getting married and seeing his startup become one of India's newest tech unicorns.

Hampered by the coronavirus pandemic and too busy expanding and getting funding for his cryptocurrency platform CoinDCX, his team finally grabbed a few days on the beach in Goa to celebrate recently.

"That was very delightful to everyone," Gupta told AFP. "It's been a very, very exciting journey. I've learned a lot... The future of India is very bright."

This year 44 Indian unicorns -- privately held startups valued at more than $1 billion -- were minted as investors piled money into a country long overlooked despite its vast potential.

Overseas funds put more than $35 billion into Indian startups in 2021 -- a tripling from 2020, according to data compiled by Tracxn -- buying into everything from fintech and health to gaming.

Foreign investors have long preferred China, another Asian country with more than a billion people.

But Beijing's clampdown on runaway growth in China's powerful internet sector, and reining in of big businesses, have spooked investors and wiped billions off giants such as Baidu, Alibaba and Tencent.

In the startup space, investors this year sank $54.5 billion into Chinese firms, down from $73 billion in 2020, analysis by GlobalData showed.

India by contrast became more attractive, with its large pool of well-educated entrepreneurs upending how many businesses work using a fast-developing digital infrastructure.

"India really is that final frontier where businesses can attract a sixth of the world's population," said Siddharth Mehta, founder of investment firm Bay Capital Partners.

"I think India is about 13-14 years behind China in terms of size and scale of the market. India's overall digital marketplace is about sub-$100 billion today but that number can easily be a trillion or $2 trillion over the next 10 to 15 years."

'India will be great'

Among those attracted are Japan's Softbank, which invested $3 billion in India this year, as well as China's Jack Ma and Tencent, and US-based Sequoia Capital and Tiger Global.

"I believe in the future of India. I believe in the passion of young entrepreneurs in India. India will be great," Softbank's founder Masayoshi Son said earlier this month.

Indian tech also saw a record number of initial public offerings this year.

Companies going public included food delivery app Zomato and beauty products platform Nykaa, listing at huge premiums to their IPO prices and making billionaires of their founders.

At their October high, Indian stocks had rallied more than 125 percent from their April 2020 low, becoming one of the world's best-performing equities markets.

No profits

But some experts warn that many of these firms may be grossly overvalued.

For instance, local fintech giant Paytm, the biggest IPO of the year, is yet to make a profit and its share price is some 40 percent down from its IPO valuation.

India's bumper year for startups also masks serious problems for an economy struggling to provide jobs for the 10 million young people entering the workforce every year.

Desperate for employment, many take low-wage "gig economy" jobs, earning as little as 300 rupees ($4) a day with little to no job security.

But for white-collar workers in the startup sector, demand for qualified workers has outstripped supply this year.

Flush with cash, companies are competing to recruit and retain top talent, offering cash, stock and even motorcycles and tickets to cricket matches as incentives.

"Recruiters reach out to us all the time," one tech employee told AFP on condition of anonymity.

"Salaries have inflated in the last year and it feels like everybody is hiring. People are changing their jobs constantly."

CoinDCX's Gupta, fresh from his beach holiday, was bullish.

"If you remain persistent, it's very possible to create a unicorn, especially if you're living in a country like India, which is full of opportunities," he said.

- INDUSTRY & MANUFACTURE

11.1.With Rs 76,000 crore PLI scheme, India set to action its semiconductor fab vision

ET Telecom, 13 Jan. 2022, Kunal Chaudhary

Global companies from Taiwan, the US, South Korea etc have expressed keen interest to invest, with a special focus on domestic companies, startups under the design segment.

With the advent of IoT (Internet of things) and 5G technology in India, the demand for semiconductor chips is on the rise and is expected to reach about $100 billion by 2025 from $24 billion today. Further the current geopolitical scenario prioritises the security of critical information infrastructure above all and that’s why trusted sources of semiconductors and displays hold strategic importance.

At present India’s semiconductor demand is entirely met through imports. Thus, there was a need to incentivise the value chain to make India economically self-reliant and technology leaders. The Government envisioned a comprehensive program for developing semiconductors and display manufacturing ecosystem in India with a budget of over Rs 76,000 crores.

The fiscal support commitment through the new schemes has reached Rs 2,30,000 crores, covering the entire electronics supply chain - electronic components, sub-assemblies, and finished goods. In the first phase of rollout, incentives worth Rs 1,53,392 crores were announced for manufacturers of mobile phones, IT hardware (covering tablets, laptops, server, all in one- PC), telecom & networking equipment, auto components, ACC battery, White goods (covering LED & Air-conditioner), Solar PV modules and specified electronic components. The latest is incentives for silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensor fabs, semiconductor packaging and semiconductor design.

Semiconductor and display fab requires a stealthy mix of product, product technology, process technology and high capital investment. Considering the same, unlike the past schemes which were based on production achievement, the programme designed by the Government to incentivize the sector is based on the project cost or capital expenditure. The broad framework of fiscal support committed under the scheme is as under:

Semiconductor fab units will be offered fiscal support of up to 30% to 50% of project cost based on node size being manufactured.

Display fab units will be offered fiscal support of up to 50% of project cost with an upper ceiling of Rs 12,000 crores.

Compound semiconductor units, silicon photonics, sensors (including MEMS) fabs and ATMP/OSAT facilities will be offered fiscal support of up to 30% of capital expenditure to approved units.

Chip product design companies (fabless companies) will be offered a design-linked incentive of up to 50% of eligible expenditure (maximum of Rs

15 crore per application) and product deployment-linked incentive of 4-6% on net sales for 5 years (maximum of Rs 30 crores per application). The Government is looking to offer such support to at least 100 domestic companies and further expects at least 20 such companies to hit revenue of Rs 1,500 crore in 5 years.

The application window for the schemes is open from 1 January 2022 and remains open for 45 days for semiconductor and display fabs and 3 years for other schemes. Special quality and cost-based selection criteria will be followed for approvals of semiconductor and display fabs.

In addition, as a non-fiscal incentive the Government also intends to support companies by giving them purchase preference in procurement of electronic products under the Public Procurement (Preference to Make in India) Order 2017. This will support companies setting up manufacturing in India captive demand base for Indian manufactured chips, which has been one of the prime concerns of the chip manufacturing companies.

Global companies from Taiwan, the US, South Korea etc have expressed keen interest to invest, with a special focus on domestic companies, startups under the design segment. It is envisaged that the scheme would bring an investment of around $22 billion leading to the employment of over 1,35,000 in the next four years.

The Government is also planning to establish an “India Semiconductor Mission” to drive long-term strategies for the sustainable development of the chip and display industry. Under this mission, the Central Government would also work with State Governments to provide pre-requisite infrastructure support in terms of land, semiconductor grade water, power, logistics and research ecosystem. The Government is also offering a clear twenty-year roadmap where the focus would be on generating highly skilled employment opportunities.

Another positive deviation from subsidizing/ incubating IP creation in India through a Government sponsored agency has been to offer a large part of the incentive on successful implementation of the design by way of production linked incentive which will incentivize companies/start-ups based on success rather than intent.

The second phase of promoting India as a manufacturing destination has been set in motion through the scheme where chip manufacturers shall benefit from the overwhelming response and demand created by the first phase of PLI. Further, with substantial fiscal incentives coupled with non-fiscal benefits, it is likely that India’s semiconductor dream is likely to be fulfilled and shall contribute significantly to achieving a $1 trillion digital economy and a $5 trillion GDP by 2025 and have a multiplier effect on allied sectors such as electronics, telecom, automotive, railways, electrical products etc.

(The writer is Partner, EY India)

11.2. HP begins manufacturing laptops, multiple PC products in India

ET Telecom, 26 Dec. 2021

The company has begun manufacturing multiple models of laptops, desktop towers, mini desktops at the Flex facility in Sriperumbudur near Chennai, Tamil Nadu.

PC and printer major HP Inc on Wednesday said it has started local manufacturing of multiple PC products including laptops in India, as the government renews its thrust on the 'make in India' initiative.

The company has begun manufacturing multiple models of laptops, desktop towers, mini desktops at the Flex facility in Sriperumbudur near Chennai, Tamil Nadu.

HP is also manufacturing display monitors in India.

Some of these products qualify under public procurement order of the government and will be available on the Government e-Marketplace (GeM) portal to meet the demands of the government departments and other customers, according to the company.

"We will be expanding our portfolio in manufacturing across multiple products within India in order to make sure that we play a meaningful role in building the country as a global manufacturing hub," Ketan Patel, Managing Director, HP India Market, told IANS.

"We have been working with the Central and state governments in the mission to empower the lives of millions of citizens and enhance the community's quality of life. This announcement will further solidify our commitment to India," he added.

HP Inc maintained its lead in the overall PC category in India, as it reported the third consecutive quarter (Q3) with over a million shipments in the country. It led both commercial and consumer segments with a 28.5 per cent share in the overall PC category, according to the IDC.

This is the first time HP is manufacturing such a wide range of laptops in India, with products such as HP EliteBooks, HP ProBooks and HP G8 series notebooks.

The company has also expanded its locally-manufactured commercial desktops by adding various models of desktop mini towers (MT), mini desktops (DM), small form factor (SFF) desktops and a range of All-in-One PCs.

These products have both Intel and AMD processor options and cater to a wide range of customer segments.

HP partnered with Flex to manufacture commercial desktops in the country from August 2020.

"The last one year of significant growth is a great testimony of the fact that computing is powering hybrid work, hybrid learning and hybrid playing. Computing is now becoming mainstream and this is a very good indicator to expand our footprint," Patel emphasised.

12.1. Dell: India can drive growth in digital: Dell Technologies

ET CIO, 28 Dec. 2021, Priyanka Sangani

The number of unicorns and global companies being built out of India presents a significant opportunity, said Amit Midha, president, Asia Pacific & Japan, Dell Technologies.

India has the potential to be at the centre of a multi-decade growth opportunity due to the growth in digital and data-led solutions in the country, a top executive of Dell Technologies said.

The number of unicorns and global companies being built out of India presents a significant opportunity, said Amit Midha, president, Asia Pacific & Japan, Dell Technologies.

“That represents a significant multi-decade opportunity ahead in terms of creating economic value, talent growth, employment as well as inclusion,” Midha said.

Dell’s global revenues were up 20% in the previous quarter at $28 billion, with Asia growing at 50% to $3.2 billion. India is the largest business for Dell in the Asia Pacific Japan region, though exact numbers are not available.

The company is betting big on emerging technologies like 5G, Edge, security and modern infrastructure as growth drivers for the business in India going forward.

Customers, Midha said, are now seeking a distributed infrastructure in order to better manage the workforce or factories.

“They want to make sure they are enabling the branches to work on the Edge and be connected. Edge is becoming a much bigger part of the conversation,” he said.

Companies are focusing on how they can use artificial intelligence to gain greater value from the data they have and on data protection, security and compliance around data, he said.

They are also investing in automation to make processes repeatable.

For Indian enterprises to take advantage of this opportunity, he said they need to be data driven, agile and have scale, for which people, process and technology were all important.

“You can’t always hire the most tech-savvy talent from outside people in the organization that have process knowledge, who have customer knowledge, who understand the operation side of things. They need to become more tech savvy,” Midha said.

The company has worked on digitising processes and mapping the customer journey through the organisation to find gaps and inconsistencies.

“This way, not only do we have consistency, but now in any time we bring innovation in one location, we can take it to another location as we are agile and scalable and can replicate things very quickly,” he said.

This, too, needs an investment in people.

“You need process engineers who are thinking digital,” said Midha.

The Covid-19 pandemic had resulted in a K-type recovery, with companies that had invested in technology, digital and data continuing to do well, he added.

12.2. Government approved Setting up of 7 Pradhan Mantri Mega Integrated Textile Region and Apparel (MITRA) Parks with a total outlay of Rs. 4445 Crores

Press Information Bureau, Dec. 28, 2021

In comparison to rival nations that must import fibre, yarn, and fabric to meet their garment production requirements, India has the unique benefit of having the whole value chain for textile production existing within the country. India also has a big domestic market that is rapidly expanding due to the availability of low-cost labour. The domestic textile and garment production market is estimated to be worth US$ 140 billion, with textile and apparel exports expected to be at US$ 40 billion. In 2019, the textile and apparel industry contributed 2% to India's overall GDP and 11% to total manufacturing in GVA.

The availability of nearly all types of raw materials, the existence of a total value chain, India's young demography, the entrepreneurial mindset of industry leaders, the government's ongoing support, technology advancements, a strong focus on innovation, and the strong presence of support industries will all help this sector grow at a healthy rate in the coming decade. This industry alone has the capacity to generate roughly 70 jobs in garmenting and an average of 30 jobs overall for every Rs. 1 crore (USD 132,426) spent, roughly six times higher compared to 12 jobs on average in other industries. With about 105 million people employed directly and indirectly, textiles business is the second largest job creator in the country, second only to agriculture. More importantly, women make up 70% of the workers in the garment industry and 73% in the handloom industry.

The appeal of the home market, as well as investments in high-end textile machinery and goods in growing fields such as technical textiles and Man-Made Fibers (MMF), will determine India's future as a textile manufacturing powerhouse. In the post-COVID circumstances, India established a Rs. 7000 crore (US$ 930 million) worth of Personal Protection Equipment (PPE) sector in just three months, making it the world's second largest producer of PPE’s.

Recent key initiatives of the Ministry during the year are as under:

PM MITRA PARKS:

The government has sanctioned the establishment of seven Pradhan Mantri Mega Integrated Textile Region and Apparel (MITRA) Parks during a five-year period, costing a total of Rs. 4445 crores (US$ 590 million). Cutting-edge technology and scale, as well as foreign direct and local investment, would be attracted to the industry by world-class industrial infrastructure. PM MITRA Park will include all five elements of the '5F' model: Farm to Fibre, Fibre to Factory, Factory to Fashion, and Fashion to Foreign. The park is planned to be built in areas that are naturally conducive to the growth of the textile industry. It will allow for the creation of an integrated textiles value chain, encompassing everything from spinning to weaving to processing/dyeing and printing to garment manufacture, all in one area, lowering industry logistics costs. It is expected that each park will generate roughly 1 lakh direct and 2 lakh indirect jobs.

PRODUCTION LINKED INCENTIVE (PLI) SCHEME FOR TEXTILES:

The Textiles Production Linked Incentive (PLI) Scheme is aimed for the high-value and growing MMF and Technical Textiles areas of the Textiles Value Chain. Manufacturing recognised MMF Apparel, MMF Fabrics, and segments/products of Technical Textiles in India will receive incentives totalling Rs. 10,683 crores (US$ 1.43 billion) over five years. This will provide a significant boost to the high-value MMF segment, which will support the efforts of the cotton and other natural fiber-based textiles industries in creating new employment and trade prospects. It will assist in the creation of 50-60 global export champions.

RoSCTL SCHEME AND DUTY STRUCTURE:

To strengthen the export competitiveness of Indian garments and made-ups, the government has approved the extension of the RoSCTL scheme till March 2024. The government has announced a consistent 12% goods and services tax rate on MMF, MMF yarn, MMF fabrics, and MMF garments, addressing the inverted tax structure in the MMF textile value chain. The new prices will go into effect on January 1, 2022. This will assist the MMF sector in growing and becoming a significant job provider in the country.

AMENDED TECHNOLOGY UPGRADATION FUND SCHEME (ATUFS):

The Technology Upgradation Fund Scheme (TUFS) is a credit-linked subsidy programme aimed at modernising and upgrading the Indian textile sector, as well as increasing ease of doing business, job creation, and exports. The ongoing ATUFS, which has been allocated Rs 5151 crore (US$ 690 million), has been implemented with the goal of enabling and supporting MSMEs.

TECHNICAL TEXTILES:

The Technical Textiles category is a new generation of textiles that will increase efficiencies in a variety of industries, including infrastructure, water, health & hygiene, defence, security, vehicles, and aviation. A National Technical Textiles Mission has also been established by the government to promote R&D efforts in the sector.

SAMARTH (SKILL DEVELOPMENT & CAPACITY BUILDING):

Samarth is a job-oriented initiative that focuses on developing the skills of jobless youth in the textile value chain for meaningful employment in the organised sector and upgrading the skills of weavers and artisans in the traditional sector. After a thorough empanelment procedure, a total of 71 textile firms, 10 industry associations, 13 state government agencies, and four sectoral organisations have been included to the scheme, with a target of 3.45 lakh beneficiaries.

NATURAL FIBERS:

The availability of natural fibres for textiles is dominated by India.

Silk: India's traditional and culture-bound domestic market, as well as an incredible array of silk outfits, have helped the country to become a world leader in the silk business. After China, India is the world's second-largest silk producer. It accounts for around 32% of global silk production. The Indian silk industry is worth estimated Rs. 75,000 crore (US$ 10.01 billion). The government has taken a variety of actions around the country to encourage investment, production, exports, and job creation in the sericulture sector.

The "Silk Samagra" central sector initiative provides R&D/Seed support, as well as technical and financial help, to improve the quality and output of silk. The scheme's main goal is to create India Atma Nirbhar in terms of bivoltine silk production and to scale up the Automatic Reeling Machine. To meet the global market demand, the brand "Indian Silk" is pushed through Product Development and Diversification.

Cotton: Under MSP Operations, CCI was able to acquire around 2.6 million bales, with approximately 0.6 million cotton farmers benefiting from disbursement of Rs. 7,600 crores (US$ 1.01 billion) directly into their bank accounts.

Jute: To increase the quality and yield of raw jute production, the Jute-ICARE (Improved Cultivation and Advanced Retting Exercise) system was developed. The Jute Raw Material Bank (JRMB) Scheme provides MSME JDP firms with jute raw materials at mill gate prices for the manufacture of jute varied goods.

Wool: With a total cash allocation of Rs. 126 crores (US$ 17 million), the Ministry of Textiles has authorised the rationalisation and continuation of the Integrated Wool Development Programme (IWDP) from 2021-22 to 2025-26. The purpose of the 'Wool Processing Scheme' is to promote the woollen sector.

TRADITIONAL LIVELIHOOD SECTOR OF TEXTILES –

Handlooms and Handicrafts:

Across the country, the Ministry of Textiles is implementing initiatives for the development of handlooms, the welfare of weavers, and the rehabilitation and promotion of the handloom sector. Handloom Export Promotion Council (HEPC) has been arranging International Fairs and domestic marketing events for weavers to boost the selling of handloom products.

However, there is a link between textiles and tourism. Crafts Tourism Village is a contemporary concept that combines artisan marketing and tourism in one location. There have already been 13 crafts villages recognised.

Focusing on Direct market Access to Weavers/Artisans:

The Ministry of Textiles is creating an e-commerce platform with the Ministry of Electronics and Information Technology to provide direct marketing platforms to handicraft artisans/weavers. In the first phase, artisans/weavers from 205 handicrafts/handlooms clusters around the country will be chosen to submit handicrafts/handlooms items to the web. Additionally, artisans/weavers are being registered on the Government E-Market Portal (GeM) so that they can sell their products directly to government ministries and departments. Approximately 1.50 million weavers have been registered on the GeM portal so far.

Promotion of Indian Toys:

As the Prime Minister stated in his "Man ki Baat" programme, everyone should "team up for toys," with a focus on the topic of Atma Nirbhar Bharat to promote the Indian Toy Industry, which includes handicrafts and handmade toy products. With the help of 14 government ministries and departments, a National Action Plan for Indian Toy Story has been developed.

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

13.1. Indian pharma industry hopes to maintain growth trajectory in the new year

ETHRWorld, 31st Dec. 2021, Aarushi Bhargava

The Indian pharmaceutical industry has grown incredibly in the past few years and employees have been at the centre of this growth. ETHRWorld talked with the industry leaders to find out what they have learnt from the pandemic, and how are they going to use these learnings to foster future growth?

The pandemic helped this sector surge ahead in terms of growth in India, but it also exposed its shortcomings that needed a midcourse correction. Moving quickly on the learning curve, the pharma and healthcare sector took full advantage of the opportunities. The surging demand also catalysed the rapid transformation of this sector into a more digitised and modernised entity, and helped this sector emerge stronger, developing medicines, vaccines and therapies much in demand.

Just when the country’s economy was reeling under a crippling blow of the Covid-19 pandemic forced shutdowns, the pharma and healthcare industry surged ahead on the strength of a rising demand for its services, the world over, including in India.

The benefits for this sector in India, the world’s largest manufacturer of vaccines, have been immense as the sector revved up to meet the growing demand from within the country and abroad for its vaccines and pharmaceutical drugs.

For sure, the pandemic helped this sector surge ahead in terms of growth in India, but it also exposed its shortcomings that needed a midcourse correction. Moving quickly on the learning curve, the pharma and healthcare sector took full advantage of the opportunities. The surging demand also catalysed the rapid transformation of this sector into a more digitised and modernised entity, and helped this sector emerge stronger, developing medicines, vaccines and therapies much in demand.

“The pharmaceutical industry in India has proved its prowess to the world during the challenging times of the pandemic by supplying 60 per cent of the global Covid-19 vaccine requirements,” said Arushi Jain, Executive Director, StayHappi Pharmacy.

“As per our sector rotation analysis, pharma has gained momentum as well as relative strength and could soon come into the leading quadrant. If the Omicron variant starts the third wave, we might see pharma taking the lead like it did in the previous two Covid waves,” Jain added. For sure, the pharma and healthcare sector in India has learnt several valuable lessons during the pandemic and richer by this knowledge, it intends to use these to accelerate and expand the growth in the coming years.

Past learnings to power acceleration of future growth

Past two years have been very eventful for the pharmaceutical industry. Disruptions caused by the pandemic forced people to examine, explore, adopt and adapt to new ways of working. Dr Raju Mistry, President and Global Chief People Officer, Cipla, describes the Covid-19 pandemic, a “grey swan” event that taught everyone how to cope with new challenges and come out trumps.

But it meant that the firms and their management had to re-look and re-examine every policy and process and come up with a new way of thinking to adopt and adapt changes needed to work in the new normal. In all this, the HR professionals assumed centre stage as growth of this knowledge-centric sector was seen driven by the employees.

Mistry said the learnings from the post-Covid experiences – empathy-led leadership, talent empowerment and constant learning – were the essential takeaways for the HR profession and professionals engaged in the sector.

It has once again been reinforced that a happy worker is a productive employee. Mistry said when employees are mentally and physically engaged with an organisation, they are keener to innovate, build stronger teams, contribute towards the company’s growth. They work productively when their leader truly cares, he said.

Equipping the employees with the right set of tools, and skill sets will empower them to be future ready, Mistry said advocating retraining and reskilling of the workforce as a HR policy initiative. These new skills will make the workers relevant even in the changing business environment, he said, making out the case for constant tweaking of policies as and when needed. “Having a sense of ownership will help the employees feel accountable and this can be supplemented by rewarding successes so as to boost employee morale,” Mistry said.

Neeloy Roy Chowdhury, Head of Sales and Partnerships, India, Medix Global, said organisations realised the need for achieving greater employee engagement after the spate of resignations hit corporations in the mid-2021. The great resignation has resulted in reframing of KPIs that are more attuned towards employee engagement, empathy, security, he said, and added “this would be a differentiating factor for organisations.” Inclusion and diversity are once again in focus.

Stressing on the growing importance and role of HR in the post-pandemic functioning of companies, Chowdhury suggested a slew of steps -- updated and flexible working policies, robust health and wellbeing ecosystem which motivates the employees to manage their health in a better way, new HR KPIs and measures of growth, balanced performance appraisal, skilling, contingency and cybersecurity systems – for ensuring continuity during the challenging times.

“Organisations that imbibed employee empowerment and a servant leadership style have come out better than the rest,” Chowdhury said.

Outlook for 2022

The pandemic has given an opportunity to the industry to look beyond transitional issues and to make a difference to fulfil the needs of the billions across the world. In 2022, the industry expects to see significant changes across all areas of innovation in pharma - from clinical trials, discovery, development to treatment approaches.

As the hybrid work mode continues in 2022, Chowdhury suggested the creation of an environment of security, especially with regards to the basic survival of self and dependents, besides the usual health and wellness aspects. The insights from HCM (Human Capital Management) systems, powered by AI, ML and analytics, must be leveraged for better decision making, he said.

“As the talent wars intensify in 2022, candidates are looking not only at competitive remuneration but also at growth, security and safety frameworks of organisations having a high reputation index,” Chowdhury said.

This is why, a transparent and robust employee talent pool and leadership succession plan, and employee centricity as far as all people interactions go, gain that much more importance, he said and added, “reliance and improvement of employee experience and attrition ratio must be focused on.” The phenomenon of machines and humans working together to monitor performance and engagement KPIs could well be an advantage, he said.

The HR leaders were on the same page when it came to the impact of the changes that the pandemic has brought about on the pharma and healthcare sector in the country.

Emphasising on re-imagining and reinventing the paradigms put in place, Mistry said, “When companies face a challenge and effect a drastic shift in their operation, like this pandemic, it is essential to look at things from day-0 and try to re-model and re-purpose things as the situation requires it – from a business sense while keeping your employees at the centre of the decision.”

Empowering employees by giving them the right set of tools and training them in skills that would be more people-centric and technology focused, is what the situation required. Companies will need to chart out a map for the future by mapping skills that are required to adapt to a new normal and a hybrid future, Mistry said.

Employees also expect their companies to be fair and inclusive, in order to foster a diverse and inclusive work environment. Companies will have to look at policies that are more inclusive while ensuring that their leadership is diversified and devoid of empathy towards their colleagues by removing unconscious biases.

Mistry also suggested that adapting to technology is essential because “Digital is the present and future.”

Jain recalled how pharma and healthcare professionals adapted to the changing landscape of operations in the sector, and how conducive they were in handling the digital transformation the sector witnessed. The use of digital health and telemedicine came to the fore during the pandemic and this trend will continue, and see increasing investment, so that there is access to quality healthcare provided at an affordable price to the masses, Jain said.

“In order to stay ahead of the competition, it is imperative for pharma companies to address the skills gap in innovative ways, thereby enabling improved employee engagement in an ever-evolving work ecosystem. With job roles evolving constantly, only consistent learning and development can help equip employees with the right skills to foster career growth,” Jain said.

“In the coming year, the pharma industry will continue to reimagine itself while driving growth and boosting value,” Jain said in a summation of expectations from the New Year.

13.2. How pharmaceutical industry is dealing with talent crisis

ETHRWorld, 15th Jan. 2022, Aarushi Bhargava

The demand for talent in the pharma sector is increasing at all levels. While the country continues to have the world's largest number of working youth population, there is still a significant skill shortage in the pharmaceutical industry.

According to the Economic Survey 2021, India’s domestic pharmaceutical market is expected to grow three times in the next decade and the market is likely to reach $65 billion by 2024.

The Covid-19 pandemic sparked The Great Resignation. Attrition has become a problem as a result of resource management issues. According to Gartner, the attrition rate in India rose from 10 per cent in 2020 to 20 per cent in 2021. India has become a treasure trove for many international corporations looking to outsource their important research work due to its qualified and cost-effective workforce.

According to the Economic Survey 2021, India’s domestic pharmaceutical market is expected to grow three times in the next decade and the market is likely to reach $65 billion by 2024. The demand for talent in the pharma sector is increasing at all levels. While the country continues to have the world's largest number of working youth population there is still a significant skill shortage in the pharmaceutical industry.

The life sciences and pharmaceutical companies are researching and hiring from the same talent pool due to the increasing demand for competent people, resulting in compensation and benefit hikes to attract those individuals.

The Indian pharmaceutical industry is a major producer of generic drugs, with annual growth rates of 10-12 per cent. India offers a cost advantage, as well as human resource availability. “However, the talent is not ready-made as the education courses in our country are not designed for pharmaceutical manufacturing, unlike Automobile or IT Industry. There is no academic institution for the first line jobs in Pharmaceutical Manufacturing,” Atul Dhavle, Chief Human Resources Officer and Head of Operational Excellence, Granules India, said.

Arushi Jain, Executive Director, StayHappi Pharmacy, explains, traditionally, for the entry-level pharma background graduates and for the mid-level positions, professional specialists have been hired. However, in the current industry climate, traditional hunting is not matching expectations for extensive search across geographies. “To maintain the global standards as the largest provider of generic drugs, India needs at least 2.5 million skilled people by 2022 to maintain the high growth rate,” she said.

Battling ‘the right skill set’ challenge

‘Learn or perish’ is the motto to run any sustainable business in today’s time. The pharma industry has realised that it has to pull up its socks and not only hire the talent with the right skillset but also ensure that they provide the right training to their employees to upskill them and be future ready.

Dhavle believes in a generic pharmaceutical company, manufacturing efficiently is critical, that is, being accurate, timely and cost-effective. For this, a four-tiered operational excellence programme (consisting of White, Yellow, Green and Black Belt) is designed to train the employees at various levels on the Concept of Flow, Waste Reduction, Problem Solving to improve flow and reduce variability.

Post training, employees undertake improvement projects in their area to apply the tools learned. The completed projects, based on the impact, are recognized and rewarded to motivate employees to engage in a continuous improvement journey.

To address the skill deficit, Granules India started Pharma Patashala – a Pharma Skills Development Centre at Swarna Bharat Trust, Hyderabad. The state-of-the-art infrastructure is designed to provide both Theory and Practical Training on API & Finished Dosage Manufacturing. It has small-scale prototype equipment for various operations, including Granulation, Compression, Coating and Packing. A Quality Control (QC) Simulation Lab is equipped with all the analytical instruments pertaining to Physical Properties and Chemical Analysis.

Granules India enrols some selected candidates who have passed their Intermediate in Science (MPC/BiPC) in the age group of 18 to 21 years for a two-month residential programme at Pharma Patashala. The sessions are conducted by resident trainers as well as visiting faculty from the Granules manufacturing units.

The training is also integrated with the curriculum prescribed by the Life Science Sector Skill Development Council, a body under the Ministry of Skill Development, Government of India.

Post completion of the course, the certified candidates join the company as manufacturing trainees where they undergo on the job training. After one year, they are enrolled in a work-integrated three years BVoc pharmaceutical manufacturing course through TISS (Tata Institute of Social Sciences), sponsored by the company. This course helps them in further enhancing their skills while they work with them, Dhavle said.

Bhawani Chavali, Director - Learning & Development, Parexel, believes that “Not a pen to write, not a book to read” - the Gurukuls method (a conventional way of imparting knowledge in India) delivers highly skilled learners as it epitomises excellence at learning which stands the test of time.

"To spark learning and skill development, we must ensure that the current L&D techniques include the following tenets: Does it inspire participants? Does it provide necessary insights? Does it rekindle enquiry?” Chavali said.

Systematic training and succession planning

Following a pyramid structure, Parexel combines skilled resources with trained and less experienced resources. Parexel also has an internal academy to upskill the employees to meet business demands.

Narasimha Reddy, Director - Human Resources, Parexel, and Bhawani Chavali, Director - Learning & Development, Parexel, believe that while upskilling is effective to fill critical skill needs, it inevitably leaves a void in existing projects.

To overcome this, teams continuously brainstorm to identify areas where there is a need for more resources and plan ahead by hiring new recruits, cross training employees internally, and managing career development for high performers to assume critical roles ahead of time.

“Succession planning of highly skilled resources and top performers is the crux of success for Parexel,” Reddy said.

At Granules India for Managers and Department Heads, specific programmes are designed to enhance the understanding of Regulatory Guidelines. Subject Matter Experts within the company are identified to take such sessions. These trainings are designed with adult learning principles in mind like short sessions, peer interactions, learning through industry case studies, quiz and on-the-job assignments. In the process, everyone learns, the trainer as well as the learner.

Acquiring the talent with the right skillset is a challenge and Parexel addresses this by hiring candidates with close to match skills and training them before being deployed into the needed projects. A strong training engine enables Parexel to bolster skill levels and match appropriate candidates to the right opportunities to meet the ongoing business needs.

To ensure trained resources are appropriately deployed, Parexel created a database of all its employees and their associated skillsets. This database helps the company to deploy resources more efficiently, as specific needs arise.

Bracing up for the future

Industry leaders suggest that building talent internally is not sufficient; in order to be better prepared for the future, they have to ensure that there is abundance of the required resources in the talent market. They also suggest that besides skilling the employees for the job, they also have to train employees in leadership skills as it may help companies in saving the time and efforts of micromanaging and also have a strong leadership pipeline.

Chavali suggests that exclusive corporate collaborations with educational institutions and universities with shared curriculum design is a distinguished way to address the talent availability needs from being interview-ready to being job-ready. There is an increased interest from undergraduates to opt for joining those educational institutions that have corporate partnerships - not only from a campus interview perspective - but also the benefit of having an industry ready curriculum.

Parexel is actively working with academia to prepare college students for expected resource needs. In collaboration with premier universities in India, Parexel has created a platform to train graduates on industry-required skills. These graduates are hired by Parexel and further trained on Parexel processes before being assigned to projects.

Reddy believes that this powerful collaboration with business units outlasts and challenges conventional L&D frameworks and helps deliver a learning model that benefits both employees and the business.

Pointing out the importance of building leadership, Jain said companies have started discovering and investing in high performing individuals who have the potential for handling leadership roles in the future. The idea is to ensure continuity and a leadership pipeline at every level of the organisation.

She suggests that leadership development should include a focused training on understanding the company's business objectives, as well as fetching managerial skills. It has been found very effective in supporting and developing teams of strong individuals.

“Due to the pandemic and climate change, the focus of the industry is now towards sustainable operations on all the three fronts together – People, Profit and Planet,” Dhavle said.

14.1. Intel: IT Minister Vaishnaw welcomes Intel to India after company lauds Centre's decision on semiconductors

ET Telecom, 28 Dec. 2021

New Delhi: Amid the renewed thrust on local manufacturing, India must take a lead in manufacturing of semiconductors and display panels to safeguard its economy and livelihoods against the global competition especially from China, Avneet Singh Marwah, CEO, Super Plastronics Pvt Limited (SPPL), has stressed Super Plastronics Pvt Limited (SPPL) is bullish on increasing its production capacity by 100 per cent, producing 1 million TV units, and adding fresh consumer electronics products in 2022 and beyond.

"This pandemic has taught us way too many things, and one of the most important one being that India must take a lead in manufacturing of semiconductors and display panels if we are to safeguard our economy and livelihoods against any other upcoming crises and changes," Marwah told IANS.

Marwah said that Super Plastronics, a Kodak brand licensee, will soon move to a new plant that will increase its production capacity by 100 per cent.

"This will actualise our production targets of 1 million units for the next year and beyond. Come 2022, we will also be adding fresh products with a focus on technology and simultaneously expand our research and development wing for the same," Marwah emphasised.

Just five years ago, Indian industries were centered around trading goods and the maximum that companies came close to creating goods was by assembling raw materials to make products.

Raw materials were entirely almost sourced from China and other bigger manufacturing hubs.

According to him, the move by the Indian government to ban imports of CBUs (completely built up) such as ACs and TVs did set the right example which led the way for local manufacturing in India.

"The new manufacturing goals of the government will change the entire ecosystem for the better. We saw a grim scenario over the past two years since Covid-19 began, when not only did we face a shortage of raw materials but also a price increase for the same and for logistics too," Marwah informed.

The industry has hailed the latest government's decision to set up the India Semiconductor Mission (ISM) and approved Rs 76,000 crore ($10 billion) for the development of semiconductors and display manufacturing ecosystem in the country.

The Rs 76,000 crore scheme will be spread across 6 years. As part of the scheme, incentives worth Rs 2.3 lakh crore will be provided to position India as a global hub.

"This will also bring in money from global investors and we do envision for India's manufacturing sector to contribute $3 trillion to the GDP by 2027," said Marwah.

According to him, the Kodak brand has seen a 100 per cent growth in the larger-sized TVs category.

"Our 55-inch TV is priced at Rs 35,999 along with a high user rating of 4.5 stars out of 5. No other TVs in the same category by our competitors are priced that low or rated so high. Our new 55-inch TV models come with an enhanced sound system assisted with Dolby Digital," he informed.

"It is a bezel-less model, thus giving it a sleek and premium look too. In fact, Kodak has seen a 100 per cent growth in the larger sized TVs category.

In 2022, said Marwah, we will also see Google TVs coming into action.

"A new TV unit, packed with fresh features, is set to completely change how our viewers interact with Smart TVs. The new and more sophisticated AI will reduce the time that we spend scouring for the perfect content to sit and watch," he said.

14.2. Vedanta to put Rs 60,000 crore ($8 bn) into semiconductors

ET Telecom, Dec. 25, 2021

Days after the government announced a mega incentive package to bring in semiconductor investments into the country, Anil Agarwal’s Vedanta group has said that it will invest up to Rs 60,000 crore to set up a sophisticated chip and glass manufacturing ecosystem in India over the next three years.

NEW DELHI: Days after the government announced a mega incentive package to bring in semiconductor investments into the country, Anil Agarwal’s Vedanta group has said that it will invest up to Rs 60,000 crore to set up a sophisticated chip and glass manufacturing ecosystem in India over the next three years.

It is also finalising technology and equity partnerships and joint ventures with top fabrication makers across the world. This is Agarwal’s second attempt at bringing in semiconductor investments into India. The fresh charge will be led through AvanStrate, a Japanese glass substrate manufacturer that Vedanta had acquired in December 2017 from the Carlyle Group.

“We are in the last stages of negotiations with various state governments for setting up a factory that would require between 250 acres and 400 acres. Overall investments into the project will range between $6 billion (Rs 45,000 crore) and $8 billion (Rs 60,000 crore) in the first two phases, following which we will carry out further assessment of the market for expansion,” Akarsh Hebbar, managing director of AvanStrate, told TOI.

Hebbar said AvanStrate is in discussions with governments in Haryana, Gujarat, Maharashtra, Telangana, Tamil Nadu and Karnataka for setting up its factory and for incentives. “We are hoping to get an additional 10-15% capital investment support from the state where we invest, apart from the central government’s subsidy.” The investments will be for large facilities for display glass and fabrication chips, apart from an LCD module plant, Hebbar said, and added that the company is in talks with top global semiconductor manufacturers such as Taiwanese makers TSMC, United Microelectronics Corp and Foxconn, Korean LG and Samsung, and Japanese Sharp.

The talks could result in technology partnerships, or combined equity investments through a joint venture. “We intend to finalise our plans over the next couple of months.” Hebbar said the Vedanta Group and its chairman Agarwal are bullish on the prospects of the semiconductor industry in India, especially in view of strong demand from the consumer electronics segment, automobile industry and allied sectors.

India does not have a chip manufacturing ecosystem, despite being a significant consumption market for semiconductor-led industries, and depends solely on co.stly imports. “The funding from our group’s side will be through equity and debt, apart from potential partnerships,” Hebbar said, adding around 80% of production will be used for domestic market, while rest will be for exports.

15.1. Asian Paints second most valuable paints company in the world

IBEF, Jan. 03, 2022

Asian Paints has risen to become the world's second most valuable paints firm. The company's market capitalization increased by 22% to US$ 43.7 billion at the end of December 31, compared to US$ 35.6 billion a year earlier. In terms of m-cap, it now ranks 450th in the world. On the BSE, the company's stock ended the day 0.5% higher at Rs 3,382 per share.

The company reported a combined net profit of Rs 605.2 crore (US$ 81.34 million) for the quarter ended September, down 29% from the same period the previous year due to higher expenses and input costs. The company's consolidated revenue from operations was Rs 7,096 crore (US$ 954.09 million) up 32% from Rs 5,350 crore (US$ 719.33 million) the previous year.

Analysts predict the Indian paint industry will outperform in terms of revenue growth, thanks to increased penetration, market share gains, and new product categories. Pricing power and fast growth potential are also anticipated to support gross margins and valuation multiples.

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

15.2. 115 companies seek PLI benefits in auto sector

IBEF, Jan. 12, 2022

According to the heavy industries ministry, 115 companies have applied for benefits under the production-linked-incentive (PLI) plan for the vehicle and auto component sector. The scheme, which has a budgetary investment of Rs 25,938 crore (US$ 3.5 billion), intends to increase the domestic production of these products. Last September 23, the scheme was announced.

From April 2022 onwards, incentives would be available under the scheme for specific sales of advanced automotive technology items (vehicles and components) manufactured in India over a five-year period. There are two parts to the PLI programme: the Champion OEM Incentive Scheme and the Component Champion Incentive Scheme.

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

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16. Madurai as Silicon Valley: City has begun attracting a growing number of tech firms

ETHRWorld, Dec. 27, 2021

HR tech firm Neeyamo, which has a centre at an Elcot IT park in Madurai, recently opened a 65,000 sqft office and plans to hire around 1,200 staff in the year ahead. “We create cutting-edge products here, same as in Chennai or Silicon Valley. It’s not just data entry or sweatshop work,” says its CEO, Rangarajan Seshadri. “We pay them well enough to stop them from migrating to metros, but we don’t over pay to spoil the market dynamics,” he adds.

However, the region’s entrepreneurs say luring investors and clients to the region is an uphill task given poor international air connectivity and public perception of “Madurai’s notoriety”.

More and more tech firms from Chennai and Bengaluru have been setting up offices in Madurai in the past one year. What attracts them are operating costs 20% lower than in other tier-2 towns such as Coimbatore and local talent that’s happy to stay on once hired.

The region’s evangelists also report an increased interest among professionals from Madurai working in Chennai and Bengaluru to return home and start their own ventures. Engineering and MBA institutes such as Thiagarajar College of Engineering and MEPCO (Sivakasi) are nurseries of talent that they hope to tap into.

Chennai-based tech startup GoFrugal recently launched a 15,000 sqft office in Madurai employing 90 people and plans to hire 60 more. GoFrugal founder Kumar Vembu says they wanted to be closer to south TN’s booming business hub.

However, the region’s entrepreneurs say luring investors and clients to the region is an uphill task given poor international air connectivity and public perception of “Madurai’s notoriety”.

Madurai also suffers from lack of visibility. Not many know of Great Innovus, for instance, launched by serial entrepreneur Kalyana Sundaram. He shunned a US job to build numerous tech startups (one of whose IPs was acquired by Blackberry) from the garage of his home.

The IT services firm now serves more than 300 global clients including Honeywell, BestBuy and L&T with a team of around 150. “I considered different cities such as Chennai and Bengaluru to start up, but the traffic put me off. I can travel anywhere in Madurai in 10 minutes,” says Kalyana Sundaram. “We may not have IITs and NITs, but the tier-2 colleges nurture great talent that can be molded to our needs,” he adds.

While the city has long hosted conventional business firms such as Madura Coats, Thiagarajar Mills and the TVS Group, the emergence of IT firms HCL Tech and Honeywell in the mid-2000s as large employers sowed the seeds for tech proliferation. Government agencies kept pace with Elcot setting up two IT parks at Vadapalanji and Ilanthaikulam. In addition, the Gangaikondan IT park in Tirunelveli is a stone’s throw away.

HCL Tech currently employs 5,400 people and the Madurai centre serves global customers in Cloud Native, .Net, Full Stack, and other modern tech. Srimathi Shivashankar, corporate VP, HCL Technologies, says they will continue to hire engineers and other talent in the city.

For first-time tech entrepreneurs, the city has the technology business incubator (TBI) of Thiagarajar College. Established in 2014, TBI currently hosts 25 tech startups across domains. S Balaji, faculty coordinator, says 18 of these startups were incubated after Covid-19 and that there has been a rise in inquiries from techies who wish to return to Madurai.

Sivarajah Ramanathan, founder of Nativelead Foundation, who engages with policymakers, says Madurai needs an image makeover. “More governmentbacked centres of excellence in traditional strengths such as agri tech and in emerging areas will help,” he adds.

Ebenezer Daniel, founder of techpowered two-wheeler financier Orange Retail and a native of the region, says “the talent here has the right attitude and a zeal to learn new skills and excel.”

But Great Innovus’ Sundaram says finding talent in niche areas is a pain point. “Raising funds is also tricky since most investors ask us to shift to Chennai,” he adds, noting that real estate prices today almost equal Coimbatore’s.

I A S Balamurugan, co-founder of Anicut Capital, says Madurai may have missed out on new-age digital ventures but that’s changing. “It is more of a reputation management issue and a question of breaking the shackles,” he says.

17.1. Smartphone industry India: Smartphone industry set for smart growth in New Year; shipments likely to touch 190-200 million

ET Telecom, 29 Dec. 2021

Indian smartphone industry might have hit speed bumps on component supply crunch but the resilient sector is poised to see 190-200 million shipments in 2022 with more 5G devices vying for consumers' attention.

When the pandemic forced people to stay indoors, smartphones became their window to the world, helping them stay connected with friends, Work From Home (WFH) and even learn new recipes. As people embraced hybrid work models, binged on web series and shot innumerable 'Reels' to stay entertained, the demand for smartphones went up significantly even as supply faced issues.

According to Counterpoint Research Analyst Shilpi Jain, the Indian smartphone market has been experiencing a steady growth curve over the last five years, growing continuously to reach 158 million units in 2019.

"The impact of COVID-19 saw the market experiencing a minor dip showcasing its resilience. The market is now set for an accelerated growth period realising the true potential of the Indian market in the coming years crossing the 200 million mark in 2022," she said.

CyberMedia Research (CMR) Analyst - Industry Intelligence Group Anand Priya Singh estimated the smartphone shipments to hover around a similar level of 187-190 million in 2022 with a further uptick in 5G device shipments, growing 129 per cent year-on-year from 28 million in 2021 to around 64 million in 2022.

Singh said there has been an 11 per cent year-on-year growth in smartphone shipments from 150 million in 2020 to 167-168 million in 2021.

While 5G networks may not be available yet, industry watchers say 5G smartphones are in demand as consumers consider 5G among their top 3 priorities while purchasing smartphones.

Realme India CEO Madhav Sheth said conversations around 5G technology and devices have been buzzing since 2019 and smartphone manufacturers introduced 5G devices in early 2020.

"Given that 5G trials are scheduled for 2022, and spectrum auctions are likely to happen in H2 2022, we expect a higher demand for 5G devices in the upcoming year. Realme aims to be a 5G leader and a democratiser in India, and will therefore equip all smartphones above Rs 15,000 with 5G. We are also working towards bringing this technology to the sub-Rs 10,000 segment," he added.

The global semiconductor shortage did have an impact on the Indian smartphone market during the second half of the year. During the festive season and third quarter, the consumer demand outstripped the supply.

"We believe that the shipments could have been 10-15 per cent higher during the third quarter in 2021. The semiconductor shortage will continue to affect the Indian smartphone market in 2022, however, we believe the situation will improve in the second half of the year," Counterpoint's Jain said.

Xiaomi India Chief Business Officer Raghu Reddy noted that over the last two years, the market has been witnessing a price hike of components such as chipsets, batteries and memory chips used by all smartphone manufacturers.

"This, in turn, has impacted the price of smartphones and has led to an inevitable price increase across SKUs (Stock Keeping Units)... While there continues to be a massive gap between demand and supply, we tried to bridge some of it by impressing on our Make in India Initiative," he added.

Prices of electronic components went up by an estimated 20 per cent on account of disruption in the global supply chain because of semiconductor shortage and COVID pandemic restricting the movement of goods.

Realme's Sheth elucidated that over the last two years, the smartphone industry has tackled multiple challenges, chipset shortage being one of the most recent ones.

"Q3 2021 witnessed a decline in shipments, and a similar decline is expected in Q4. Supply chain shortages have also led to brands postponing the launch of new products, and have caused a slight increase in smartphone prices for consumers despite brands trying their best to absorb these internally," he added.

Sheth said since the onset of this shortage, Realme has been looking at and working on collaborations with chipset manufacturers who can provide processors to us without compromising performance. Chip shortage is likely to ease in the second quarter of 2022.

While Xiaomi and Samsung took up the top two spots in the smartphone market, Vivo, Realme and Oppo occupied the next three positions. OnePlus, Samsung and Apple wooed customers with their premium portfolio.

According to Counterpoint, the retail ASP (Average Selling Price) is estimated to increase 13 per cent year-on-year in 2021 as smartphone volumes are transitioning towards higher price segments.

In December, the government approved a Rs 76,000 crore-scheme to boost semiconductor and display manufacturing in the country in a bid to position India as a global hub for hi-tech production and attract large chip makers.

The move would further India's ambitions to be self-reliant in electronics manufacturing, bring massive investments and result in 35,000 specialised jobs apart from indirect employment for one lakh people.

Other segments like smart TVs and TWS (earbuds) have also witnessed significant growth on the back of the increasing affordability of these products.

Smart TVs hold around 85 per cent of the overall TV market and the research firm expects it to further increase.

"As per our forecast, the Indian Smart TV market is expected to grow by 30 per cent in 2022. The post-pandemic economic recovery and entry of new players in the market will facilitate this growth," Jain noted.

The New Year promises to be a treat as consumers get access to not only sleeker, stunning and power-packed smartphones but also more IoT (Internet of Things) enabled devices across various price points.

17.2. Trai to initiate discussions on mandatory telecom infrastructure in buildings

ET Telecom, Dec. 25 2021

The Telecom Regulatory Authority of India (Trai) is likely to come up with a consultation paper to firm its views on non-discriminatory and mandatory deployment of teleocm infrastructure within building premises to effectively address the right-of-way (RoW ) issues particularly in-building solutions (IBS).

NEW DELHI: The Telecom Regulatory Authority of India (Trai) is likely to come up with a consultation paper to firm its views on non-discriminatory and mandatory deployment of teleocm infrastructure within building premises to effectively address the right-of-way (RoW ) issues particularly in-building solutions (IBS).

"The regulator is coming up soon on a discussion paper seeking views on providing mandatory access to telecom service providers on a non-discriminatory basis within the building premises to facilitate in-building solutions including optic-fibre cable," a person aware of the matter said.

The new consultation process is likely to advocate "ratings of buildings" based on their readiness for appropriate digital connectivity and inside coverage, indicating a need for certain modifications in the Real Estate Regulatory Authority (Rera) or the Real Estate (Regulation and Development) Act, 2016, and urban development framework.

The industry has been blaming restrictive access to private and public premises to deploy telecom infrastructure following the quality of service (QoS) concerns.

The watchdog eyes to bring in a regime for non-discriminatory entry of multiple telecom service operators, providing fair and reasonable access to localised inhabitants.

In November 2016, the Department of Telecommunications (DoT) came out with right-of-way (RoW) rules that called for a nationwide uniform policy, one-time nominal administrative fee, and deemed approval within a 60-day period.

Further, in October 2021, the Centre amended the Indian Telegraph Right of Way rules to incorporate the provisions for one-time fee and uniform procedure for deploying overhead optic-fibre cable with a cap of Rs 1,000 per kilometre.

The new proposed paper will seek ratings of buildings based on availability of ducts, and appropriate space for IBS, and would also seek stakeholders suggestions whether such a framework be needed for older buildings on a voluntary basis.

"This is a good idea, and a very timely move by Trai. The upcoming consultation paper will help in faster implementation of next-generation (5G) services, and allow improved coverage through in-building solutions," Tilak Raj Dua, director-general of the Digital Infrastructure Providers Association (Dipa) said.

Further, Dua said that in order to improve in-building coverage and to offer better quality high data rate services, there is a definite need to install inbuilding solutions (IBS) for wireless services.

The Delhi-based group that represents telecom infrastructure providers such as ATC India, Bharti Infratel, Tower Vision and STL have been demanding liberal and uniform policies to boost digital connectivity infrastructure on the back of the country's increasing mobile subscriber base and data traffic.

Industry estimates suggest that nearly 70% of mobile traffic originates from indoors only.

Multiple policies and directives issued by various state-level departments for installation of telecom infrastructure have resulted in delayed telecom infrastructure roll-outs while absence of single-window clearances have added to the existing woes of infrastructure providers.

18.1. Mamata lauds IT hiring, cites TCS’s 50k jobs mark

ETHRWorld, Dec. 27, 2021

“Happy to share that the IT sector in Bengal has touched a new high. TCS has given employment to 50,000 professionals in Kolkata! Back in 2011, the number was only 15,000 and now, it has increased by 3 times. Best wishes to all,” she tweeted.

The state government is focusing on the IT sector for job creation. Cognizant has an 18,000-strong workforce in Kolkata, the second highest in the city’s IT sector. IBM has approximately 8,000 workers.

Kolkata: The employment by IT company TCS has touched the 50,000 mark in Kolkata. Chief minister Mamata Banerjee tweeted this on Wednesday while iterating the state government’s commitment to generating jobs.

According to officials, the TCS campus in Action Area II of New Town had generated about 15,000 jobs in the last few years. The IT giant had a 41,000-strong workforce in Kolkata in 2018 and the attrition rate was only 3%, former Bengal finance minister Amit Mitra had said earlier. The company has reported 11,000 hirings in the city over the last three years.

According to state officials, other companies such as Reliance Jio, Capgemini and First Source Solutions have also shown interest in setting up campuses in Silicon Valley Hub, which is coming up in New Town. As much as 74 acres of the Hub’s 100 acres have already been booked. The government has allotted 100 acres more for the Hub.

Incidentally, the New Town-Salt Lake Sector V twin towns together have more than 74 IT companies.

18.2. Indian startups raised $42 bn in 2021, up from $11.5 bn in 2020: Report

IBEF, Jan. 14, 2022

According to a research by Orios Venture Partners, Indian entrepreneurs raised US$ 42 billion in 2021, up from US$ 11.5 billion the previous year. According to the 'The Indian Tech Unicorn Report 2021,' India will have 46 unicorns (businesses valued at US$ 1 billion or more) in 2021, more than doubling the overall number to 90. ShareChat, Cred, Meesho, Nazara, Moglix, MPL, Grofers (now Blinkit), upGrad, Mamaearth, GlobalBees, Acko, Spinny, and other services are among them.

With 90 unicorns, India is the third-largest unicorn hub after the United States (487) and China (301), and ahead of the United Kingdom (39).

With around 60,000 startups, India boasts the world's third-largest startup ecosystem.

"These startups are not only developing innovative solutions and technologies but are generating large-scale employment. Today, one out of 13 unicorns globally was born in India," it said.

Flipkart was the most valuable unicorn (US$ 37.6 billion after raising US$ 3.6 billion in July 2021), while Mensa Brands was the fastest to become a unicorn (just 6 months after raising the first US$ 50 million round in May 2021), according to the report.

According to the report, India has witnessed four decacorns (businesses valued at US$ 10 billion or more) thus far: Flipkart, Paytm, Byju's, and Oyo Rooms.

"A total of 11 Indian startups (including 8 unicorns) raised about US$ 7.16 billion through public offerings...One97 Communication (Paytm) raised India's largest-ever IPO with an issue size of Rs 18,300 crore (US$ 2.46 billion)," it said.

Furthermore, among the listed Indian companies, Zomato has the greatest market capitalization (US$ 14.8 billion), followed by Nykaa (US$ 13.5 billion) and Freshworks (US$ 6.9 billion), according to the survey.

In addition, 20% of unicorn founders are non-engineers, and two-thirds of Indian unicorns have at least one or more founders from IITs, IIMs, or ISBs, according to the survey.

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

19. 2021: The year Indian telcos got their wish-list

ET Telecom/Asia Newsletter, 31 Dec. 2021, GAGANDEEP KAUR

It hardly ever happens that the industry gets so many of the items on its wishlist granted by the government in one go. 2021 was that year for the Indian telecommunications industry, when the administration announced a number of telecom measures that addressed the industry's long-standing demands.

Tell me what you want, what you really, really want

Santa visited India way before Christmas, when the government announced a series of reforms in September 2021. A key measure among them was the four-year moratorium on the pending adjusted gross revenue (AGR) dues.

Other measures included changes in the AGR definition, 100% foreign direct investment (FDI), spectrum sharing and a change in the right of way (RoW) rules.

More than anything else, the slew of telecom measures was seen as a sign that the government has finally started listening to the issues raised by telcos. As a result, all the telcos widely hailed the reforms.

After some delay, the government also announced a production-linked incentive (PLI) scheme to boost manufacturing in the country. Several global and domestic vendors, including Nokia, Ericsson, Dixon, HFCL and Tejas, have decided to benefit from it.

Raising the tariff

Another key reason for positivity in the Indian telecom industry is the tariff hike announced by all three major private telcos, Bharti Airtel, Reliance Jio and Vodafone Idea.

This was long overdue since the last tariff hike was in 2019. As of now, the 21 to 25% increase is only in the prepaid segment, but the telcos may hike tariffs in the postpaid segment as well.

This is a sign that operators are going beyond the competition and looking at improving profitability. Moreover, since this comes a few months before the 5G spectrum auction, it will also help the industry acquire funds and increase investment in network upgradation.

5G trial extension and 5G price

Another point of happiness for the Indian service providers was that they got a six-month extension for conducting 5G trials.

This ensures that they get one year to conduct 5G tests and would be able to quickly launch 5G services after the spectrum auction takes place in April-May 2022. Further, the indications are that the 5G spectrum price will be reduced by the DoT which will add to the telcos' happiness.

20.1. Digitising healthcare - Rise of a new technological revolution

ET CIO, 29 Dec. 2021, Girish Raghavan

The resourceful nature of doctors, our engineers, policymakers, and concerned citizenry forged a new path to the future of healthcare; one marked by the practice of telemedicine and telehealth, remote monitoring of patients, and other leapfrogs in technology that streamlined work for medical professionals, while making patient-centric care more accessible.

The digital revolution in healthcare fueled by the pandemic saw the birth of various technological innovations and acceptance to combat the rising number of infections and to save lives. The resourceful nature of doctors, our engineers, policymakers, and concerned citizenry forged a new path to the future of healthcare; one marked by the practice of telemedicine and telehealth, remote monitoring of patients, and other leapfrogs in technology that streamlined work for medical professionals, while making patient-centric care more accessible.

Telehealth & Remote Patient Monitoring (RPM) – The emerging trend

Leveraging technology in healthcare has always helped channelize new approaches to improve communication between healthcare professionals and patients through patient-centric care. With distressingly low doctor to patient ratio, the use of tele ICUs and remote patient monitoring saw great traction during the pandemic. Seen as a highly valuable alternative solution for individualized care at home while reducing the strain on overburdened healthcare centres, the trend only seems to be on the rise, with India’s patient monitoring market projected to register a CAGR of 6.4% by 2025. *

With immaculate integration of the patient data from multiple sources, it enables close monitoring of patients by caregivers. A bespoke interface automatically provides actionable data, well-structured care bundles, and protocol alerts all conforming to universally accepted hospital guidelines. Real-time monitoring of patient data also allows doctors to be more present, deliver urgent care and allow medications to reach a lot quicker.

Real-time Optimization

Technologies such as AI, ML Engineering, Cloud computing, and IoMT are making inroads into the healthcare sector helping streamline the workflow as well as provide better care to patients. Leading the charge in the tech-driven revolution in the industry, GE's solutions have advanced patient-centric care by leaps and bounds. These solutions help keep track of a myriad of processes by digitising patient-specific care pathways and clinician workflows allowing for greater patient-centric care. Furthermore, patient monitoring and home health dispense premium healthcare to a variety of patients. It is helpful to think of the command centre in hospitals as the brain of operations. Consistent patient monitoring remotely would help millions of patients across the world lead a normal life with confidence that there is a system that is monitoring them round the clock.

With the new practice guidelines published by the govt, telehealth is reaching new heights with more focus on patient convenience, and treatment accessibility helping the country shift from provider-centric to a patient-centric model.

What the future holds

Healthcare is moving into the realm of the virtual, and it has created greater transparency. Advocacy for patient-centric care does not stop with the doctors or healthcare providers. To deliver impactful care, the system must incorporate the patient themselves. Patients who are aware and more understanding of their conditions, correspond well with their doctors and highlight their experiences a lot better. This exchange is imperative and aids in the care and helps keep the patient in the loop.

With public policies like the National Digital Health Mission (NDHM) being set up, the digitization of a nation’s healthcare infrastructure is just over the horizon. While the traditional healthcare system we have all grown up with has saved countless lives and has helped shape society over decades, it may not be able to shoulder the pressure anymore.

The demand for good healthcare is a core part of public policy, and GE echoes the sentiment that healthcare is an inalienable right. This fuels our innovation as we make a concerted effort towards the democratisation of healthcare.

Girish Raghavan, VP, Software Engineering, GE Healthcare South Asia

20.2. Tech firms may hike pay by 120% to hire, retain niche talent

ETHRWorld, 29 Dec. 2021

People in high demand include full-stack engineers, data scientists, data engineers and backend engineers, according to statement.

This demand is likely to persist into 2022, till enterprises create an organic talent pool and upskill workers, which would typically take six-eight quarters

How IT sector is gearing up for the next phase of experiences in 2022

Although Covid-19 has brought numerous challenges and opportunities, looking at the brighter side of it, experts believe the pandemic has accelerated digital innovation and transformation enormously.

For industry leaders, the war for talent is far from being over. They say all employers are grappling with ‘The Great Resignation’ and putting in efforts towards ‘The Great Retention’.

Experts say this year has been a rollercoaster for those in the Indian information technology (IT) industry, witnessing volatile demand and consequent volatile hiring pipelines.

In the early days of the pandemic, Vijay Sivaram, CEO, Quess IT Staffing, explained companies downsized to optimise costs; however, with time, as companies looked to step into the future by enabling digital value chains, they needed to add new muscle to their teams – particularly their tech teams.

“This accelerated race led to tech hiring becoming increasingly cutthroat -- MNCs, traditional IT firms, startups, and GICs were all looking to grab top technology talent, with relevant experience, leading to a gap in talent demand and supply,” he said.

Sivaram has a point. Take for example, among the IITs of Delhi, Bombay, Kanpur, Madras, Kharagpur, Roorkee, Guwahati and Varanasi, the highest domestic packages were Rs 1.8 crore a year. International packages ranged as high as Rs 2.15 crore - Rs 2.4 crore.

Job portal Indeed’s recent analyses of IT jobs indicate a steady increase in job postings over the last year. Job postings for IT jobs on Indeed doubled between September 2019 and September 2021.

While job postings recorded a 13 per cent increase in September 2021 as compared to September 2020, comparison to the pre-pandemic time indicates that job postings saw a 26 per cent jump between September 2019 and September 2021.

Demand for tech talent is here to stay

Although Covid-19 has brought numerous challenges and opportunities, looking at the brighter side of it, Rajesh Rai, VP - People Team and Head - HR, India of GlobalLogic, believes the pandemic has accelerated digital innovation and transformation enormously.

“With the ongoing pandemic, it is imperative to create a continuous and ever-evolving need to enhance these immersive digital experiences in an ever-expanding low touch economy,” he said.

Thus, Rai opined the scale of hiring will be proportionate to this large-scale digital transformation. “I foresee that it would keep increasing to a point where the overall industry reaches a digital threshold that signifies the milestones achieved in this transformative experience base and shifts their focus to explore the next phase of experiences,” he said.

GlobalLogic itself is in a massive growth phase and is working towards building purposeful growth for its people and community. With a strong workforce of over 22,000 employees globally, Rai earlier revealed the objective is to scale 5X to boost workforce resilience and business growth by building the next generation of digital talent.

According to an IDC White Paper 2021, nearly two-thirds of those direct jobs will require occupational skills and that the need for specific digital skills will grow from 23 per cent of those new jobs this year to 37 per cent in 2026. IT leaders say if this is any indication, we might see an increase in the pace of hiring across India.

Supporting the same, Ramesh Krishnamurthy, COO, Indium Software, said the demand for tech talent is here to stay for the next 2-3 years at least.

“With Digital becoming central to the way of life, we believe the war of talent will be driven by IT companies enhancing their talent to meet global demand, and also Indian startups, armed with increased PE/VC funding, will continue to drive up demand for tech talent,” he added.

The digital transformation wave accelerated by the pandemic with everything possible going online, demand for IT professionals for developing and supporting the sector has grown manifold.

“While companies transition their legacy systems and build next-gen platforms and processes, talent demand for technology skills is set to boom in 2022 as well,” said Anushka Tharad, Human Resource Executive, Appknox.

Tharad revealed Appknox has to ramp up its game at hiring talent with more innovative ways and perks to attract the right talent or “be left out”.

Culturally, skills will define returns on retention

The year 2021 was the time of out of the box talent retention attempts - extraordinary sops, skyrocketing bonuses, etc.

From an industry standpoint, Ramkumar Narayanan, MD and VP - Technology, VMware India, thinks employees are increasingly seeking out workplaces that prioritise work that challenges them, allow them to work on the latest technologies, has a progressive culture, cares about their wellbeing, and offers flexible policies.

“The changes brought upon by the pandemic to the day-to-day lives of people also allowed them to reassess their priorities and reflect upon what they truly want out of their careers. For some it could be more flexible, while others realised they wanted purpose,” he said.

So, Narayanan said the best way to retain the talent you have and attract the best talent available is to be a people-centred company. “A company that cares, gives people choice and flexibility, prioritises individual and collective wellbeing, and offers opportunities to grow and contribute,” he added.

Similarly, Sushant Dwivedy, MD - India and Philippines, SHL, feels that the Talent Management (TM) exercise used to be once in two years, however, Covid and technology have initiated an increase in the speed with which companies transformed their TM processes.

“In the present, things are starting to turn and adopt a faster pace of change. Organisations that used to take 30-35 days to generate an offer, they are talking about 4 hours to a week as a turnaround,” he explained.

Speaking of sops, Rai of GlobalLogic believes any trend is demand and supply-driven and as long as the demand is more than supply, these trends will continue.

“Immersive employee experiences seem to be becoming the norm for the future and therefore, the ‘out of the box’ retention attempts will actually become ‘way out of the box’ now, making creativity, innovation, and inclusion the central themes of all retention initiatives,” he said.

Also, Rai opined, culturally, skills and care are the currencies that will define returns on retention.

Extending on Rai’s points, Sivaram, Quess IT Staffing, said organisations will need to focus on a long-term, sustainable strategy to overcome the acute talent crunch.

He suggested firms need to think beyond the monetary magnetic pull and work towards an effective push strategy to attract and onboard talent.

His advice? “Follow the 4C approach; career, communication, celerity and compensation.”

“Set up well-defined career paths, communicate the role and expectations clearly, ensure your ‘time to hire’ is optimised, and offer a compelling compensation – both monetary and non-monetary,” Sivaram added.

People will continue to work together in the new shared virtual spaces

For industry leaders, the war for talent is far from being over. They say all employers are grappling with ‘The Great Resignation’ and putting in efforts towards ‘The Great Retention’.

“Employees today can command the privilege of working from home, enjoying the benefits of spending more time with their family, more time to pursue their hobbies along with work,” said Srikanth Sathyanarayana, Senior Manager - Talent Acquisition, Komprise.

Sathyanarayana further said companies that cannot offer the flexibility of work from home may suffer the consequences of losing top talent as a result. “It is unclear how long-lasting this trend will continue, so employers need to be prepared to respond to the ever-changing dynamics,” he added.

Walking parallelly to the trend, Komprise is offering a flexible, hybrid work culture.

The importance of employee wellbeing is increasingly prioritised by the leaders at Appknox and many other organisations that are now veering towards the idea that a workplace is not where you go to work, but rather a place where work happens -- “highlighting that a hybrid work environment would find its relevance in 2022 too, even if the pandemic concerns are a bit eased,” Tharad said.

At Zoho Corp, the entire business runs on its own cloud, which allows every employee to work from wherever they are. This has helped the company execute its broader strategy of rural revival by opening offices in multiple villages across the country.

“Current employees get a chance to return to their roots while continuing to work on technology jobs, and we can take opportunities to the talent available in those regions,” said Rajesh Ganesan, Vice President – Products, ManageEngine, adding, “we believe this balance is critical for the employees, the company, and the society in general.” ManageEngine is the IT management division of Zoho Corporation.

On a similar note, VMware has rolled out a Future of Work initiative, which takes a forward-looking approach towards a hybrid workforce that puts employees’ safety and success front and centre.

VMware employees will have the choice and flexibility to work from any location that accelerates their productivity. “This hybrid approach allows us to meet our employees’ needs, wherever they are, and better support careers as we navigate a changing world,” Narayanan said.

GlobalLogic also recently announced ‘autonomy at work’, empowering its employees to choose their workplace till the end of 2022, with a flexible work policy and the hybrid work model.

“Talent trends are already getting shaped by how innovatively and collaboratively teams and people work together in these new shared virtual spaces,” Rai said.

India and the World

21. Semiconductor manufacturing: Taiwan, Japan eye 'all round cooperation' on chips

ET Telecom, Dec. 25 2021

While Chinese-claimed Taiwan and Japan do not have formal diplomatic ties, they have close unofficial relations and both share concerns about China, especially its increased military activities near the two.

TAIPEI: Taiwan and Japan's ruling parties agreed on Friday to have "all round cooperation" on semiconductors and to hold regular talks between each other, Taiwanese lawmakers said, after what are de facto discussions between the two governments.

The talks, attended by two senior lawmakers each from Taiwan's Democratic Progressive Party (DPP) and Japan's Liberal Democratic Party (LDP), took place online, and follow initial consultations in late August.

DPP lawmaker Chiu Chih-wei told reporters that chips were not just an issue for Japanese industry, which like the rest of the world has faced semiconductor shortages, but also an issue of security in the face of China.

"Both sides agreed that in the future there will be even more cooperation on chip supply chains, there will be a complete framework, a system, to have all round cooperation on semiconductors and other industries the two countries put importance on," he said.

Japanese officials said they had agreed with Taiwan side that the two needed to cooperate to build resilient supply chains in areas such as semiconductors.

Taiwan Semiconductor Manufacturing Co Ltd said last month it would build a $7 billion chip plant in Japan with Sony Group. TSMC, a major Apple supplier, produces some of the world's most advanced semiconductors.

Head of the DPP's international department Lo Chih-cheng, who is also a senior DPP lawmaker, added that the two parties agreed going forward their dialogue would become regular.

The Japanese side also reaffirmed its support for Taiwan to join the 11 member Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, Lo said, which China is seeking to join too.

However Lo said that military issues were not discussed during these talks.

Japanese and U.S. armed forces have drawn up a draft plan for a joint operation for a possible Taiwan emergency, Japan's Kyodo news agency said on Thursday, citing unnamed Japanese government sources, amid increased tensions between the island and China.

In October, Japan's government signalled a more assertive position on China's aggressive posture towards Taiwan, suggesting it would consider options and prepare for "various scenarios".

22. Russia's latest nuclear-powered icebreaker to boost India's Arctic plans via Northern Sea Route

IBEF, Dec. 30, 2021

Russia has unveiled the 'Sibir,' a new nuclear-powered icebreaker that will join a fast-growing fleet of lethal icebreakers to maintain the Northern Sea Route open for year-round shipping through the Arctic, allowing India to expand its footprint in the region.

The Indian side indicated interest in partnering with Russia on the Northern Sea Route during the 21st edition of the India-Russia summit, which took place on December 6. The Indian side congratulated Russia on its successful presidency of the Arctic Council from 2021 to 2023 and stated its willingness to participate actively as an Observer in the Arctic Council.

According to Russian estimations, oil and gas reserves in the Russian Arctic might be sufficient for the country for decades, if not millennia. Simultaneously, the Arctic is throwing up new possibilities for hydrocarbons and other untapped resources beneath its ice. Russia maintains a stronghold in the Arctic, which it regards to be its strategic backyard.

The Arctic has offered India and Russia with a new front of potential for collaboration. The Barents region, located in the Arctic, is home to some of the world's most well-known mineral reserves as well as some of the world's best deep harbours from which to transfer the products. Iron ore is abundant in the area. Russia's Arctic oil and gas development projects have been accorded top attention.

The shortest route between East Asian and Western European ports is via the Northern Sea Route via the Arctic. The nautical distance between Shanghai and Rotterdam via NSR is expected to be 30% shorter than the Suez Canal route, saving travel time by 10–12 days. Similarly, the distance between Yokohama and Rotterdam will be cut in half.

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

23. Indian startup roped in by London mayor's office to set up gaming hub

IBEF, Jan. 06, 2022

Microgravity, an Indian-based gaming company, has been selected by the London Mayor's Office to establish an augmented and virtual reality (AR/VR) gaming arena in the city.

According to Rahul Bhattacharya, Managing Director of Microgravity, the deal should be finalised within the next fortnight.

"A London-based fund has expressed interest in establishing a gaming centre like our offering in Gurugram, Haryana – in London. For this project, we are financing £1.5 million from a London-based real estate investment trust (REIT)."

"The London Mayor's Office's business and economy department approached us and appointed London & Partners to assist us in finding the suitable location and funding for the facility," Bhattacharya continued.

London & Partners is a non-profit public-private partnership (PPP) firm founded by former London Mayor Boris Johnson in 2011. Its mission is to form promotional alliances that will help the city create jobs and expand economically.

Work on the facility will begin in January 2022, according to Bhattacharya, and it should be operating in London by July 2022.

Microgravity is a company that creates real AR/VR game arenas and has a location in Gurugram that showcases them. It is not the only one, though. Zero Latency VR, an Australian start-up based in Mumbai's suburbs, runs an AR/VR gaming hub with the same name, which includes a VR shootout arena with up to eight players playing at the same time, among other games. Zero Latency is based in Mumbai and is run in collaboration with Indian entrepreneur Parineeta Rajgarhia.

To not lag, Smaaash, a decade-old Indian gaming centre, has shifted its focus to include some parts of AR/VR experiences in its locations across the country.

The AR/VR gaming industry is likely to increase in the future years, while consumers in India currently have a limited selection to choose from. Rajgarhia of Zero Latency estimated in an interview with Outlook Business that revenue from the global VR gaming business was $12 billion in 2019. She predicted that in the next five years, this figure may climb by 30%, with Asia-Pacific accounting for 40% of global VR gaming demand.

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

24. How Infosys is strengthening its cybersecurity posture

ET CIO, Jan. 12, 2022

Vishal Salvi, Chief information Security Officer and Head of Cybersecurity Practice at Infosys talks about how the IT services company successfully enabled its 280,000 employees across 50 countries to work remotely within weeks while maintaining cyber resilience at the same time

With the pandemic, organizations had to pivot toward working from home and from cloud during a very short period. At Microsoft’s Future Ready, Vishal Salvi, Chief information Security Officer and Head of Cybersecurity Practice at Infosys, discussed how the company went through rapid and massive changes to adopt to the new mode of work and the role Microsoft played.

Infosys, the fourth largest IT services company in the world, successfully enabled its 280,000 employees across 50 countries to work remotely within weeks at the onset of the pandemic. The organization attributed this agility to its ability to keep pace with changing trends.

From a cybersecurity perspective, the attack threat surface increased dramatically during the pandemic because of rapid adoption of cloud, data, and analytics. Therefore, this period provided an opportunity for threat actors to exploit vulnerabilities. “Remote working has diminished the monolithic perimeter defense and I concur with one of Microsoft’s Zero Trust statement that identity is the new perimeter. Zero trust takes data as the central pivot, but it revolves around identity,” said Salvi.

Infosys saw unrelenting pandemic-related phishing attempts, advanced malware, various versions of ransomware attacks, and advanced persistent threats like organized crime against nation states and financial institutions. Microsoft O365 services like Azure AD, Azure MFA, Microsoft Intune and conditional access enabled Infosys to tag identity as user plane with device and data plane which translates to 360-degree security, striking the optimal balance between user convenience and control.

The world is now seeing an increased rate of digital adoption. What was earlier within the perimeter of an organization can now be anywhere on the internet, which is borderless and has no geographical control. “If security is an afterthought, companies can be left vulnerable. It is very expensive to implement security into your products and solutions after you have already built it,” said Salvi.

It is not just that the risks are increasing but the ecosystem is making leadership accountable for the management of cybersecurity risks. “Broadly, companies need to focus on four goals: finding a balance in the tradeoff between convenience and control; keep upgrading the cybersecurity posture; build a sense of cyber resiliency within the organization and build a cybersecurity culture within the organization,” Salvi added.

Infosys uses Microsoft Security and Compliance Center, and Secure Score dashboards guide IT and Information Security teams at Infosys to track and monitor latest and historical scoring based on Security controls enabled. It also provides actionable insights to improve the organization's data protection capabilities and overall compliance posture. “The fact that security is the responsibility of each individual needs to be inculcated, Infosys has adopted multiple training programs in partnership with Microsoft towards building that culture. We also perform multiple phishing campaigns using Microsoft Attack simulation to determine and enhance user awareness. Tools like Azure Information Protection (AIP) increased awareness among employees on the significance of classifying and protecting information,” added Salvi.

“One thing that is clear is that we will not go back to the old legacy architecture that we had. We will have a modern, pivoted technology architecture that will allow employees to work from anywhere, any time and from any device. And this will be possible 24X7 in a trusted and secure manner,” said Salvi.

25. The Indian Start-Up ecosystem building a unique and conducive environment for GCCs to thrive

ETHRWorld, 14 Jan. 2022, Naveen Gullapalli, Ashwini Prakash

The number of start-ups that are coming up in India, which are funded from across globes, provides an exciting proposition because these startups truly focus on innovating business models and technologies.

Are the global capability centers (GCCs) in India still viewed as cost saving centers?

Novartis Capability Center has been in India for over 10 years. We have been expanding our capability center from mere transactional processing to functional ownership and to creating new capabilities that align well with the strategic intent of the company. Novartis’s purpose is to reimagine medicine by bringing in big data and digitalization into our processes and in India we have built a very strong base of operations over many years. We have a strong presence in the market with respect to development operations. We have the market share to us, Novartis technology competency centers, data science competency centers and all of these are well positioned to work together towards the company's strategic objectives. The value proposition of GCCs in India is to bring capabilities to help companies move forward. Cost benefit has always been one of the strong business advantages of operating in India and it allowed us to use more resources for pursuing our strategic goals. At the higher end of the value chain, the cost difference is not a factor, what really matters is the capability because that’s where we are able to attract talents in all these niche areas where it is difficult to attract anywhere in the world.

What is the contribution of GCCs in India towards global innovation? Where do you see them heading next in the value chain?

I think it’s the journey that many companies have taken, where you start with owning some operations, taking ownership, building expertise, and then adding your capabilities and moving towards the operational aspect and innovating towards real business. There are several GCC’s which are at different points in the continuum, but this continuum is enabled by the ingredients they have like attracting and retaining great talents, being cost effective, having capabilities, strength, and knowledge of operations – which is not conducted in any other offices or countries except India. Then we have a conducive ecosystem in India, which is amongst the top 5 ecosystems in the world for doing business. The number of start-ups that are coming up in India, which are funded from across globes, provides an exciting proposition because these startups truly focus on innovating business models and technologies. There are several GCC’s that file patents for technology & product companies, there are several GCC’s in the retail space that determine digital marketing strategy and innovations in the digital marketing space which is really the bread and butter for their digital business. Similarly, at Novartis we are collaborating with startups and innovating on our operations, offerings, and products. There is a lot of potential in this space, and it is beginning to show up. Many startups are working with companies and GCC’s have realized that the startup ecosystem brings something unique, different, and quite valuable to the company. Startups also have an inspirational value as we work with them, we realize how much speed and creativity matters, how much discipline matters and they have a soft effect on our culture to make us more efficient.

As a core team member, you have been instrumental in setting up the Novartis GCC in India. What were your learnings through your journey?

It is very important to be strategic about setting up capability centers in India. Analyzing the long-term goal and the reason you are setting up the GCC in India – How do you see this contributing to the company’s purpose? Are you really growing the company’s business? Are you serving as the talent hub to the organization? It is very important for the centers to be bold and have high ambition of trying to create a unique niche for themselves within the company. Having a vision and developing plan to innovate within the organization can help GCCs to thrive. India is the place where you can get high quality engineers, scientists, accountants, technologists for a sustained period which makes it easier to build capabilities and beyond this I think all the successful GCC’s have a great culture with a local element in terms of collaboration, speed, agility, and adaptability. It is important to harness all the factors to work towards and achieve the goals of the company.

At Novartis, we have a One-Novartis approach as many businesses operate here. We run many business functions, a lot of initiatives, projects that allow everyone to collaborate with each other, innovate, learn from each other and progress collectively which is empowering for the organization. Novartis GCC is more towards the side where we have large scale centralized operation ownerships. We have leading competency centers and innovation opportunities. Many companies use us as a digital transformation center and a business transformation center. We have a massive talent base because we were the first movers. In our initial journey, we had few hiccups but slowly we learnt the trick to thrive and survive. We have amazing facilities, world class standards in terms of learning, good people-practices, etc., all of this has given us a pretty good head start. People connected and identified with the purpose of our company, and they contributed to its growth.

What was your immediate response to the effect of pandemic on your business and workforce to maintain business continuity?

COVID-19 has cemented the value of centers like ours because we were able to serve throughout without any hindrance in our offerings. We were quick to adapt to the changing demands as we were well prepared for contingencies. Remote work arrangements were routinely tested in many places, and we had the necessary infrastructure. It was fairly an easy switch for us from work perspective, leaving beside the whole challenge of pandemic. It was a revelation for us to witness the level of compassion our associates have for each other. Novartis was the first company to set up a 24x7 help desk internally staffed by all the associates to support every single member of our company and their families, no matter where they were based in the world, with everything from expert advice, access to medicines, access to infrastructure, by just being there and counseling our colleagues. There were a bunch of volunteers who stepped up despite risks and this really opened our eyes to the power of being a Novartis associate. The people rose to the occasion to meet challenges together. We were the first company to offer vaccination to everybody and their families. The Novartis workforce was confident because our CEO went on record and said that there won’t be any job losses even though the business environment is tough, and we are uncertain when this is going to end.

With an 8000 + strong workforce, how did the organization adapt to remote working? How did you lead this change?

Our footprint is very large, and I am referring to only the capability center which has a much larger India footprint with manufacturing and commercial operations. Amongst 8000 employees, 2000 employees joined us during COVID-19, and we know each other virtually. We made sure to accommodate associate’s needs in terms of where they want to work and how they want to work. We introduced a program called choice of responsibility, which allowed associates to make their working choice if business requirements are met. We are one of the companies in India that were the liberal end of the new normal. We want to have an agile and flexible system in the new normal that allows this capability center to excel even when the market is turbulent.

With GCCs becoming a talent attraction hub, how does Novartis stay ahead in attracting, retaining, and creating a pipeline of skilled talent for internal succession plans?

When we hire for the jobs, we focus on explaining the purpose of Novartis to our potential employee, what are the long-term prospects in Novartis, how they can grow, how they can contribute and what are we trying to achieve in our capability center. These factors enable us to analyze our associates and make them understand our organization better which later becomes the secret sauce to make a connection with the associates.

Companies are focusing more on Environment, Social, Governance (ESG) now, what are the various sustainability initiatives you are driving at your organization

The way we settle in the new normal is going to be environment friendly. We no longer require every single associate to come to office and take up the whole transportation thus reducing a certain level of pollution. We already have global initiatives that we run in India which includes being carbon neutral in our own operations by 2025 and aim to be water and plastic neutral by 2030.

In the capacity of your role as Co-Chair at NASSCOM Hyderabad chapter, how do you influence the policy making decision in favor of its member companies in driving the GCC agenda?

It is a good industry collaboration where many companies like us get together to share several opportunities to solve bigger problems like quality of talent, understand the taxation challenges, facilitate growth through leadership. In the sense, it is a very supportive forum where we expose some of our capabilities to several other companies so that they can learn from our journey. It shows the collective spirit of the industry and the local government is also extremely supportive, collaborative, and proactive with respect to supporting industry and it really helps to partner with them on innovation.

Besides having a flourishing career, what are your other pursuits?

I enjoy being with my family. I like playing golf, listening to music, and watching movies. I am a foodie and I relish Hyderabadi food.

Naveen Gullapalli, Head, Novartis Hyderabad and CTSX, in conversation with Ashwini Prakash, Managing Partner India, Asia Pacific Lead – Pharma, Healthcare, Life Sciences and Consumer products, Stanton Chase India

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AAPI

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Tuesday 18 January 2022

20-I-2022

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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

NEWSLETTER, 20-I-2022

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

- INDUSTRY & MANUFACTURE

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

India and the World