AAPI: June 2022

DELHI, 20th JUNE 2022

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Internationalisation of higher education: Centre to allow foreign universities enter GIFT City in off-campus mode
22. Digital economy is space for growth, opportunity between India, US: USIBC
23. Tata Cos Well-Capitalised, Focus on Future Growth Biz
24. Saudi Tourism signs MoU with EaseMyTrip
25. Philippines eyes Indian made LCAs and LCHs, ties up with HAL to upgrade military aircraft fleet

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DELHI, 20th JUNE 2022

NEWSLETTER, 20-VI-2022

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1.1. UIDAI training 48000 postmen to provide Aadhaar sewa at people's doorstep

ET Gov. 7 Jun. 2022

India Post Payment Bank will go door to door in the remotest parts of the country and link Aadhaar number with mobile numbers, update details, and conduct enrolment of children at the doorstep.

Apart from delivering your speed-post, the humble postman will soon deliver a key service at your doorstep – Aadhaar.

The Unique Identification Authority of India (UIDAI) is training 48,000 postmen of India Post Payment Bank to go door to door in the remotest parts of the country and link Aadhaar number with mobile numbers, update details, and conduct enrolment of children at the doorstep.

In the second phase of the programme, all 150,000 postal officers will be covered, a senior government official said.

The training is being provided as a part of UIDAI’s expansion plans aimed at reaching out to more people and enrolling as many citizens as possible, the official told ET.

To ensure smooth rollout of the plan, UIDAI will provide postmen with the necessary digital gear such as a desktop or laptop-based Aadhar kit to update the necessary details of Aadhar card holders, the official said.

“So far, we have run pilots on IPPB postmen using tablet and mobile-based kit for child enrolment,” the official said. “We will now expand that to enable them to also update Aadhaar details in remote areas using laptop or a desktop.”

Apart from IPPB postmen, UIDAI also plans to onboard nearly 13,000 banking correspondents currently working with the Common Service Centre of the Ministry of Electronics and Information Technology, the official said.

To ensure that the Aadhaar details collected and updated by IPPB postmen and CSC banking correspondents are updated as quickly as possible, UIDAI also plans to open an Aadhaar Sewa Kendra in each of the 755 districts of the country, the official said.

“We currently have 88 UIDAI Sewa Kendra in 72 cities. The plan is to reach even the remotest corners,” the official said. “We will also approach state governments to provide space in government premises where these sewa kendras can be opened.”

On an average, about 50,000 residents use the self-service portal of Aadhaar daily to update their details such as address, phone number, and other editable details. Most of these changes, however, are done from urban areas as residents in rural areas visit Aadhaar Sewa Kendra to update these details, the official said.

To tackle this problem, UIDAI plans to open ‘mini’ Aadhaar Sewa Kendras in all the 7224 blocks of the country, which will have the necessary set up for linking mobile phone and permanent account number cards to Aadhaar, updating of details such as phone number or address, among others.

“We will have to find state government or municipal premises for both the Aadhaar Sewa Kendra as well as the mini kendras. We are hopeful that the state governments would help UIDAI,” the official said.

In July 2017, UIDAI had asked states to ensure that all enrolments and changes to the Aadhaar, even if done by private agencies, should be only from a government or municipal site from September 2017.

UIDAI is the nodal body responsible for rolling out Aadhaar, the 12-digit biometric identification number, to all residents. Aadhaar numbers have been allocated to 1.33 billion people till date.

1.2. 37 Rajasthan schools get FSSAI's ‘eat-right’ certificates

Eat-right schools ensure healthy eating practices like adding fruits, healthy local and seasonal snacks along with healthy beverages and green leafy vegetable in the diet.

Rajasthan has become the first state in the country, where a cluster of 37 government residential schools received the ‘eat-right school’ certification by the Food Safety and Standards Authority of India (FSSAI).

Eat-right schools ensure healthy eating practices like adding fruits, healthy local and seasonal snacks along with healthy beverages and green leafy vegetable in the diet.

These certificates have been obtained based on fulfilling all the standards of high quality, hygienic and nutritious food in these schools.

A health department official said, “Training programmes were organized at the residential schools for the academic staff and cooking staff. Also, a capacity building of the students was also done. All of them were informed about food safety standards. From fruits and vegetables to cooked food, how they are served, eaten while maintaining complete hygiene during the training by the CFSDC officials.”

“The officials assisted school staff in creating a safe and wholesome environment from childhood and healthy eating practices were encouraged,” he added.

According to the officials, it was the hard work of past few months of the Commissionerate of Food Safety and Drug Control (CFSDC), a newly formed body, which is headed by IAS officer Sunil Sharma.

2.1. Urgent need to absorb new technologies in Railways: Union minister Ashwini Vaishnaw

ET Gov. 30, May, 2022

Even today we have locomotives running that were designed in the 1950s and 1970s.

There is an urgent need to absorb new technologies in the Indian Railways according to Rail Minister Ashwini Vaishnaw.

“The Railways has been unable to absorb technology during our journey of more than 70 years. Even today we have locomotives running that were designed in the 1950s and 1970s. There are operational coaches that have been phased out in other parts of the world in the 1970s and 1975s,” Vaishnaw said while addressing the Investiture Ceremony of the Railway Protection Force (RPF) in New Delhi.

“So we need to rapidly absorb technology, be it for rolling stock, construction, safety, cyber security, or in situations where there is a human interface,” he added.

Commenting on the investment required to upgrade the Indian Railways, Vaishnaw said that nations which are similarly sized to India have spent an average of Rs 9 lakh crores to Rs 10 lakh crores annually only on the railways.

Speaking to journalists after his address, Vaishnaw reiterated his earlier stand that the Indian Railways requires an investment of at least Rs 3 lakh crores per annum.

Vaishnaw also said that the Railway Budget is going to be reworked for prioritising safety.

“The capital investment in railway security, whether it is for equipment, accommodation, vehicle movement or other miscellaneous requirements will be met out of a captive budget for upgrading railway security infrastructure,” he said.

Explaining how this would improve deployment of safety related infrastructure, Vaishnaw said that the RPF needs to have the freedom to undertake capital investments.

“There will be a separate capital outlay. For example, if a RPF Director General (DG) or Inspector General (IG) finds the need to have a CCTV camera installed at a railway station, then the officer should not have to approach several departments to get the funds for the same,” he told ET.

“This will be instituted in the coming Revised Estimates (RE) of Budget 2022-23,” he added.

2.2. Jharkhand govt to set up common service centers at 25000 PDS shops by October

ET Gov. 14 June, 2022

The common service centres will provide various types of services to the rural population such as bill payments, applications for government ID cards like passport, voter, UID and ration cards and registrations for central schemes such as Ayushman Bharat, PM-Kisan, registration to the e-Shram portal, etc.

Jharkhand state food and civil supplies minister Rameshwar Oraon

The Jharkhand government has announced plans to equip 25,000 public distribution shops (PDS) in the state with common service centres (CSCs) by October.

The state department for food, civil supplies and consumer affairs signed a memorandum of understanding with Union government’s CSC e-Governance Services India Limited (CSC SPV) for setting up the necessary infrastructure for the same, the government said in a statement on Thursday.

“The common service centres will provide various types of services to the rural population such as bill payments, applications for government ID cards like passport, voter, UID and ration cards and registrations for central schemes such as Ayushman Bharat, PM-Kisan, registration to the e-Shram portal, etc,” state food and civil supplies minister Rameshwar Oraon said on Friday.

The department has set a time limit of two months for rolling out the CSCs. “The dealers will be trained by the SPV personnel. We are hopeful of beginning a handful of such CSCs on a pilot basis very soon,” he added.

Oraon further said, “It was observed that the rural population has to travel several miles to get to a CSC and get such work done. Now, they will be able to get the services at their doorstep. Besides serving the rural population, the CSCs will be an added source of income generation for the PDS dealers, who get a nominal commission (of Re 1 for every kilogram of grain sold).”

The department is also planning to pave the way for PDS owners to get soft loans from the government-run cooperative banks at subsidised interest rates so that they can stock up their stores with other consumables, such as soaps, biscuits and edibles for sale in rural areas.

3.1. Ease of doing business, digitization helped MSMEs grow significantly says PHDCCI survey

IBEF, May 20, 2022

A study on 'Ease of Doing Business for MSMEs in India: Percolating EODB Reforms at Factory Level' was conducted by the PHD Research Bureau of the PHD Chamber of Commerce and Industry in collaboration with the Department of Commerce, Delhi School of Economics, University of Delhi.

India was placed 63rd out of 190 countries in the World Bank's Ease of Doing Business EODB Report in 2020, up 14 places from last year. While international EODB rankings are provided by the World Bank, state-level rankings in India for EODB (BRAP Ranking) are provided by the Department for Promotion of Industry and International Trade (DPIIT).

Even with lower investments, Micro, Small, and Medium Enterprises (MSMEs) make a major contribution to the Indian economy. This industry is critical to India's growth and development, accounting for a significant share of the country's GDP, employment, investments, and exports.

The adoption of digitization, availability of information on business procedures and compliances, processes and procedures for starting a business, adequate power supply availability, and the process of tax registration and compliance are the top five scoring parameters for MSMEs' ease of doing business. Government help for marketing, reduced time to obtain finance, and lower total costs of conducting business, on the other hand, received the lowest scores.

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

3.2. I'm working to make Tamil Nadu number one state in India: CM MK Stalin

ET Gov. 19 Jun. 2022

"The DMK government was focusing much on improving the quality of life of the people and it is striving hard to ensure every rupee spent on development reaches the last person down the line to benefit from it."

Tamil Nadu Chief Minister MK Stalin on Wednesday said he is working to make Tamil Nadu the number one state in the country.

Inaugurating the “Thanthai Periyar Memorial Samathuvapuram” at Kottai Vengapatti, the CM said Tamil Nadu remained a forerunner in the implementation of progressive schemes across the country under his government.

Highlighting various public welfare schemes implemented by the DMK government in the last year, Stalin said he has so much to do though he is already being called as the best performing Chief Minister in the country. My only intention is to make Tamil Nadu the number one state in all aspects, he added.

Stalin said the DMK government was focusing much on improving the quality of life of the people and it is striving hard to ensure every rupee spent on development reaches the last person down the line to benefit from it. The concept of Samathuvapuram (equality village) was introduced by the late chief minister M. Karunanidhi in 1997 and 238 Samathuvapurams have been established across the state so far.

The CM handed over the keys to the beneficiaries in the presence of the state ministers KKSSR Ramachandran, KN Nehru, P. Moorthy and KR Periyakaruppan.

4.1. Future of Work Culture

The Economic Times, 5 Jun. 2022

Synopsis

Companies need to create workplaces that suit employees’ post-pandemic requirements.A new phenomenon is forming in the postpandemic workplace— microculture. A single team, with a leader at its helm, forms its own work culture and ethos

Agencies

I an Goodfellow, who was Apple’s director of machine learning, recently resigned from the Silicon Valley giant. The reason? He wasn’t pleased with the idea of going back to the office even for a few days a week. Closer home, 800 employees of Byju’s-owned edutech firm WhiteHat Jr put in their papers for the same reason.

After two years of work from home (WFH), returning to office (RTO) is a hassle for some employees for several personal reasons.

Meanwhile, Elon Musk has waded into the WFH/RTO debate. He sent emails to workers at SpaceX and Tesla, asking them to spend a minimum of 40 hours in the office per week. It says, “If you don’t show up, we will assume you have resigned.”

Employers who are insisting on work from office might have to face blowback from a section of the workforce. A 2022 Global Talent Trends Study by Mercer, an asset management company, reveals that 74% of employees will join an organisation only if it offers them hybrid or full-time remote work. Of the two options, most companies are opting for a hybrid model to get the best of both worlds — face-to-face interaction and remote working. But then it also begs the question: where does work culture—a mix of a company’s values, mission, leadership and a team’s collaborative spirit, all of which make up its intangible but ubiquitous environment—come inI an Goodfellow, who was Apple’s director of machine learning, recently resigned from the Silicon Valley giant. The reason? He wasn’t pleased with the idea of going back to the office even for a few days a week.

Closer home, 800 employees of Byju’s-owned edutech firm WhiteHat Jr put in their papers for the same reason. After two years of work from home (WFH), returning to office (RTO) is a hassle for some employees for several personal reasons. Meanwhile, Elon Musk has waded into the WFH/RTO debate. He sent emails to workers at SpaceX and Tesla, asking them to spend a minimum of 40 hours in the office per week. It says, “If you don’t show up, we will assume you have resigned.” Employers who are insisting on work from office might have to face blowback from a section of the workforce. A 2022 Global Talent Trends Study by Mercer, an asset management company, reveals that 74% of employees will join an organisation only if it offers them hybrid or full-time remote work. Of the two options, most companies are opting for a hybrid model to get the best of both worlds — face-to-face interaction and remote working. But then it also begs the question: where does work culture—a mix of a company’s values, mission, leadership and a team’s collaborative spirit, all of which make up its intangible but ubiquitous environment—come in?

SENSE OF BELONGING

Several companies believe that nothing can replace human interaction in the workplace. “The chats over a cup of coffee or a quick chai can never be recreated virtually—no matter how much coffee or samosa you have [virtually]. It is also hard to see the monthly or quarterly meetings disappearing altogether,” says Suresh Subudhi, head—India people team at BCG India. However, Subudhi also outlines some reasons in favour of remote working: enhanced productivity, a more distributed office footprint while engaging with clients, and a commitment to a climate change agenda.

A May 2021 McKinsey article says employers need to look into problems associated with remote work, “…while productivity may have gone up, many employees report feeling anxious and burned out. Unless leaders address the sources of employee anxiety, pandemic-style productivity gains may prove unsustainable in the future. That’s because anxiety is known to reduce job satisfaction, negatively affect interpersonal relationships with colleagues, and decrease work performance.” These feelings can all compound to negatively impact work culture. Most employers have called on staff to return to office with alacrity. However, the jury is still out on whether decisionmakers have spent enough time tailoring workplaces to suit employees’ mental health and post-pandemic needs.

Feroza Engineer, performance coach, Feroza & Co, says Indian companies are fundamentally grappling with a hybrid working model. The first step at this time, she says, is to have inclusive leadership. “Inclusion and diversity don’t just mean a focus on LGBTQIA candidates and the gender ratio. Diversity also means respecting people’s backgrounds and circumstances. Are leaders spending enough time in creating mechanisms that work? If an individual doesn’t feel like coming to work, can’t they simply work virtually?” she says.

Testing out what works before casting it in stone is a great first step. As is “understanding which part of the collaborative process needs someone to come to work”, according to Engineer. “Organisations also need to understand that employees who feel comfortable, safe, and, most importantly, productive, are already feeling belonged. They will leave if you force them to the office,” she says.

Some companies such as the online marketplace Meesho have introduced permanent work from home for all employees. About this decision, Meesho CHRO Ashish Kumar Singh says they realised the role technology can play in enabling remote work without impacting productivity or quality of work. And the pandemic has given employees a glimpse into this possibility. “People will tend to prefer employers who allow flexibility and empower them to choose their convenient location of work,” he says

CULTURE DISRUPTION

“Healthy” work culture is built over time and evolves continuously. “It does not change rapidly or dramatically,” says Tina Balachandran, SVP — culture, and talent, Unacademy. Instead, she believes, it adjusts gradually over a long period of time. “However, the last two years have accelerated our pace of adoption. While e a r l i e r w o r k c u l t u r e w a s measurable by on-ground interactions between employees, now it will not be wrong to say that we are emerging from a season of workplace culture disruption,” Balachandran adds. CoinDCX’s head HR Mudita Chauhan says it’s no longer enough for businesses to consider casual dress codes, office parties and unconventional office spaces as markers of work culture.

She lists “the company’s vision, higher level of transparency in decisions, being empathetic towards blurred boundaries of time and space, giving employees the flexibility to plan their schedules and ensuring that each employee feels valued, respected and acknowledged” as the new parameters. A hybrid model, experts believe, is also a great way for organisations to shed admin-heavy activities— attendance tracking, for instance. Instead, they can focus on outcome-based performance-tracking processes. Flexibility empowers individuals to plan their day on the basis of their productivity, evoking more positive feelings towards their workplaces. “The future of work will be defined on the pillars of employee flexibility and empowerment, where constant reimagination of processes and policies will be a prerequisite. Policies that are forward-looking, inclusive, and industry-leading will set the precedent,” says Meesho’s Singh. Organisations also need to rethink their office spaces to accommodate employees’ mental health and their online and offline presence. Engineer says, “Most organisations haven’t done a psychological assessment of the workspace. It’s not only about the ergonomics of a chair, for instance, but also about creating a physical, visceral environment for people to feel comfortable.” The new-age office must feel connected and equal to all staff, whether they are physically present or working remotely.

TRUST FACTOR

Several leaders, especially those with old-school management style, believe face-to-face meetings are key, and perhaps the only way, to build trust and enhance productivity. However, this has stopped being true for the most part. Employees and leaders who do not use technology—video-meeting apps and collaborative software—to connect with colleagues will find it challenging to function in a hybrid working world. What’s more, individuals who are extremely comfortable working from home can be resentful towards the management; it is inconvenient for some to dismantle their current set-up and return to the office, especially when they don’t find value in it. This can harbour a feeling of distrust and of having no autonomy over one’s decisions.

A significant component of a successful hybrid model is for team members to build trust with each other. Nimisha Das, director HR, Kellogg South Asia, says trust is a defining principle of the postpandemic work culture. Das says, “When an employer entrusts an employee with flexibility and manages things the way the employee prefers, they empower the individual. This, in turn, makes the environment inclusive for a hybrid model. In return, we expect this trust to translate into productivity and growth, both for the employee as well as the organisation.”

FORMING MICROCULTURES

A new phenomenon is forming in the post-pandemic workplace. Pre-2020, companies could have a three- or fiveyear roadmap of cascading culture values across its staff. However, two years of remote working along with mergers and acquisitions, resignations, workforce redistribution, and a talent landscape that changed overnight, have given way to microcultures. A microculture in the workplace is a single team, with a leader at its helm, forming its own work culture and ethos. Engineer says more and more companies are empowering leaders to design and enable microcultures within their teams. “So, team leaders, the only people teams deal with and report to, are driving their company’s values in their teams, thereby creating an everyday microculture,” she says. For now, this seems like the most viable solution at a time when it is difficult to gather all employees for a townhall over samosa and tea.

4.2. Government IT spending in India to reach $9.5 bn this year with increasing digital service delivery models

ET Gov. 15 Jun. 2022

Now, governments are executing innovative activities by harnessing technology to streamline digital services, advance automation processes and evolve citizen experiences and building a data fabric.

The government IT spending in India is likely to reach $9.5 billion in 2022, an increase of 12.1 percent from last year, a new report said on Monday. Software will continue to be the highest growing segment in India this year, followed by IT services.

"Contrary to the worldwide spending, all segments will experience growth in 2022 in India," said Apeksha Kaushik, principal analyst at Gartner.

Now, governments are executing innovative activities by harnessing technology to streamline digital services, advance automation processes and evolve citizen experiences and building a data fabric.

Global government IT spending is likely to reach $565.7 billion in 2022, an increase of 5 percent from 2021. Continuing the trend from 2021, software is forecast to record the strongest growth across all segments in 2022.

As legacy modernization continues to be a priority in government organizations, growth in the data center systems segment will continue to slow during the forecast period, the report mentioned.

"Governments are executing innovative activities by harnessing technology to streamline digital services, advance automation processes and evolve citizen experiences," said Daniel Snyder, director analyst at Gartner.

Spending on telecom services is set to decrease in 2022 as governments reduce investing on expensive legacy systems in favour of digital service delivery models.

Anything-as-a-Service (XaaS) is gaining popularity across government organizations as it provides better return on investment normalising IT spend over time making budgeting for IT more predictable.

"The pandemic sped up public-sector adoption of cloud solutions and the XaaS model for accelerated legacy modernization and new service implementations," said Kaushik.

With the ongoing talent challenges facing organizations, XaaS makes it easier for government organizations to find the right talent via XaaS operating models.

5.1. Himachal Pradesh invites bids for 27 hydro power projects of 722.4 MW capacity

ET Gov. 17 May, 2022

The projects are proposed in Chamba, Kangra, Lahaul-Spiti, Kullu, Shimla and Kinnaur districts for which proposals from ‘eligible bidders’ have been invited for the implementation in the private sector on Build, Own, Operate and Transfer (BOOT) basis.

Himachal Pradesh government is going to allot 27 hydro power projects having combined tentative generation capacity of 722.4 MW and located in Chamba, Kangra, Lahaul-Spiti, Kullu, Shimla and Kinnaur districts for which proposals from ‘eligible bidders’ have been invited for the implementation of these projects, in private sector on Build, Own, Operate and Transfer (BOOT) basis.

The project developers will be required to provide royalty in the shape of free power from the project to the government in lieu of surrender of the potential site at 12% for the entire agreement period.

Of the total 27 projects, 9 are located in Chamba district, one in Kangra district, one in Lahaul-Spiti district, 5 in Kullu district, 7 in Kinnaur district, one in Shimla district, one on the border of Lahaul-Spiti and Chamba districts while 2 on the borders of Chamba and Kangra districts. Detailed project reports of 7 projects have already been prepared while Preliminary Feasibility Reports (PFRs) and salient features of remaining projects are also available.

According to the officials, the developer will be free to dispose of such power as remains after meeting commitments of royalty in the shape of free power and additional free power at 1% of the deliverable energy to be provided by the Project Proponent on account of Local Area Development Fund (LADF), through merchant sale.

The project developer will have to ensure release of minimum environmental flow (e-flow) immediately downstream of the diversion structure of the project throughout the year, at season-wise rates as recommended by the Union Ministry of Environment, Forests and Climate Change (MoEF & CC). E-flow discharge will be monitored by the concerned departments and agencies.

For projects below 25 MW capacity, where recommendations are not made by MoEF & CC, the e-flow will not be less than the threshold value of 15% of the minimum inflow observed in the lean season in line with the State Pollution Control Board notification.

It has been made clear that in case of violation by project developers, action will be taken by the department and appropriate authority in line with the prevailing guidelines and laws.

According to the information, the operation period of the projects will be 40 years from the Scheduled Commercial Operation Date (SCOD) of the project, where after, the project will revert to the state government free from all encumbrances and liabilities.

After completion of 40 years, State may either extend the agreement on mutually agreed terms and conditions or may go for competitive bidding under Renovation and Modernisation (R&M) mode for next thirty years, however, the royalty payable to state for the extended period in any case will not be less than 30 percent.

5.2. Tata Power, Tata Motors to develop 7MWp solar rooftop in passenger vehicles

IBEF, May 24, 2022

Tata Power and Tata Motors have collaborated to develop a seven MWp solar rooftop project at the latter's passenger vehicle plant in Chikhali, Pune. This is the third phase of the two companies' joint 17 MWp on-site solar project, of which 10 MWp has already been installed. For this solar project, the two companies recently signed a Power Purchase Agreement (PPA).

The rooftop installation is expected to generate 23 million units of electricity and save 5.23 lakh tonnes of CO2. This is the equivalent of planting 8.36 lakh trees over the course of a lifetime. With the new installation, Tata Power will move closer to its goal of 100% renewable energy in its operations, said Mr. Rajesh Khatri, Vice President, Operations, Tata Motors Passenger Vehicles Ltd.

Tata Power has executed several large solar rooftop solutions, including one of the world's largest rooftop (16MW) at Radhasoami Satsang Beas (RSSB) in Amritsar.

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

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

6. India has 70,000 recognised start-ups: PM Modi at MP govt function

IBEF, May 17, 2022

Prime Minister Mr. Narendra Modi unveiled the Madhya Pradesh government's Start-Up Policy 2022 and a start-up portal through a video link. Startups would receive subsidies for rent and employee salaries under the proposed programme. On this occasion, he also met with a few entrepreneurs to hear about their businesses and offer advice on how they might help people.

In 2014, there were 300 to 400 start-ups in the country, but in eight years, their number has increased to 70,000, according to the prime minister. The state government will provide subsidies to start-ups for workspace rent, salaries, and product patents under the new programme. If a start-up is working from a rented place, Rs. 5,000 (US$ 64.34) per month will be paid for rent. It will also get Rs. 5,000 (US$ 64.34) per month per head for a salary of up to 25 employees, the official added.

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

7.1.Barwani Farmer strikes Gold, cultivates 14-inch Banana

Barwani (Madhya Pradesh): Arvind Jat, a banana harvester in Barwani district is the happiest he’s ever been since he started farming and he has a reason for the same. Arvind, who cultivated a banana crop in the field has become a topic of discussion in the entire region due to the size and quality of the fruit. After all, he has been able to cultivate a crop with the bananas measuring a whopping 14 inches. Arvind not only supplies bananas to the local buyers but exports them to Iraq and Israel.

Arvind who hails from the small Bagud village in the district said he has already supplied 10 tonnes of bananas to Reliance Fresh as well and that he is getting orders from Iraq and Israel as well.

Arvind said that the central and the state governments are making constant efforts to ensure that the farmers get a fair price for their produce.

Narrating his story, Arvind said he planted a banana crop and took every effort throughout the crop cycle to ensure a good harvest and used cow dung as manure. “The size of my crop on an entire six-acre field is around 14 inches,” he added.

Barwani: Foundation stone laid for new college building in Pansemal

7.2. New Guidelines for Central Sector Scheme “Promotion of MSMEs in North Eastern Region and Sikkim” for enhancing productivity and competitiveness

Press Information Bureau, June 3, 2022

The Central Government has approved new guidelines of central sector scheme “Promotion of MSMEs in North Eastern Region and Sikkim”. The scheme will be implemented during the 15th Finance Commission Cycle (2021-22 to 2025-26).

The scheme is envisaged to provide financial support for enhancing the productivity and competitiveness as well as capacity building of micro, small and medium enterprises (MSMEs) in northeast India and Sikkim.

The scheme has the following broad components:

Setting up of new and modernization of existing Mini Technology Centres: The scheme intends to provide financial assistance to state governments for the establishment of new and modernization of existing Mini Technology Centres.
Development of new and existing Industrial Estates: Central government financial assistance will be provided for development of new and existing Industrial Estates and Factory Complexes.
Development of Tourism Sector: The projects for creation of common services such as kitchen, bakery, laundry & dry cleaning, refrigeration and cold storage, IT infra, potable water, display centre for local products, centre for cultural activities etc. in a cluster of home stays may be considered under the scheme.

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

8.1. Rice Exports: Good monsoon outlook in India tempers fears of rice export curbs

The Economic Times, 3 June 2022

Synopsis

Global markets are fretting that rice may be next on the agenda after India restricted wheat and sugar exports. Unlike other commodities such as edible oils and wheat, which surged on supply disruptions after Russia’s war on Ukraine, rice has been broadly stable on bumper output and huge stockpiles.

Agencies

Ample rice reserves in India, the world’s biggest exporter of the food staple, and expectations for bountiful monsoon rains should allay concerns about the possibility of any “drastic” measures to curb exports, according to National Commodities Management Services Ltd.

Global markets are fretting that rice may be next on the agenda after India restricted wheat and sugar exports. Unlike other commodities such as edible oils and wheat, which surged on supply disruptions after Russia’s invasion of Ukraine, rice has been broadly stable on bumper output and huge stockpiles.

“As things stand today, there is every reason to be optimistic for the crops to be good given the supportive monsoon,” Siraj Chaudhry, managing director at the warehousing and trading company, said on Bloomberg TV. There is “no reason to believe” that there will be any ban on rice shipments as India exports only about 20% of its output and there are sufficient stocks, he said.

“There maybe some quantitative restrictions, if there is a problem with the crop or problem with the weather going forward,” Chaudhry said during the interview with Juliette Saly and Rishaad Salamat.

Crop prospects in the country of almost 1.4 billion people have brightened after the India Meteorological Department predicted a normal monsoon for a fourth year. The June-September rainy season, which waters more than half of the country’s farmland, also fills reservoirs that irrigate winter-sown crops. India is the second-biggest grower of wheat, rice, sugar and cotton, and the top buyer of palm, soybean and sunflower oils.

Rice is the one staple grain helping to keep the world food crisis from getting worse. India has been an aggressive rice shipper this year, after exporting 17.26 million tons of non-basmati rice in 2021-22, and 3.95 million tons of basmati rice, an aromatic grain used in dishes such as biryani and pilaf.

The supply upheaval globally has given India “a foot in the door” to more markets for its goods, Chaudhry said. The country’s infrastructure and the whole supply chain need to be “smoothened, strengthened and shortened” to continue the access to these markets that have just opened up, he said.

8.2. Tomato Price: Tomatoes are the next big risk to Modi’s fight against inflation

The Economic Times, 3 Jun. 2022

Synopsis

Tomatoes, potatoes and onions form the holy trinity of Indian cooking, where they’re often mixed with spices to form the base for curries, such as chicken tikka masala. The average retail price of tomatoes in India has jumped 70% from a month ago and 168% from a year earlier to 53.75 rupees (69 cents) a kilogram as of Tuesday, according to data compiled by the food ministry.

Agencies

Tomato prices are surging in India, putting politicians on notice as vegetables have an unusual history of toppling governments in the country.

The costs of everything from cooking oil to wheat flour have climbed in India, stoking inflation to an 8-year high in April and squeezing household budgets. The government has risked global ire by restricting wheat and sugar exports and the central bank is seen heading for another interest-rate increase this month after surprising with a hike in May. A dovish member of the central bank’s rate-setting committee has said that food prices had risen more than the monetary authorities had expected.

Soaring food prices, including tomatoes, may also have a political impact as the ruling Bharatiya Janata Party is set to face voters at the end of the year in Prime Minister Narendra Modi’s home state of Gujarat, a campaign that will set the tone for his re-election for a third time in 2024.

During Modi’s 2018 campaign, he famously said farmers are his ‘top’ priority, explaining that ‘TOP’ means “Tomato, Onion and Potato.”

There is a shortage of tomatoes currently, said Prem Bais, 36, a vegetable vendor in Mumbai. Supplies from the old harvest are dwindling and a new crop will only arrive in about three months, said Bais, who is now selling tomatoes at about 80 rupees a kilogram, up from as much as 50 rupees two months ago.

Mango prices are also rising in some areas after unusually hot weather slashed output. Prices of the popular Himsagar variety have doubled in Kolkata, the capital of West Bengal, from 50 rupees last year. Production of mangoes has slumped about 40% in the state, partly due to heat waves in previous weeks, according to Kamal Dey, president of the West Bengal Vendors’ Association.

India endured a record heat wave in March and April, with temperatures in some places reaching almost 50 degrees Celsius (122 degrees Fahrenheit). The blistering heat damaged India’s wheat output, prompting authorities to restrict exports that the world was counting on to alleviate shortages caused by the war in Ukraine. India has also curbed sugar exports to protect its own supply.

“I have to pay higher prices as I can’t pick just one child to feed,” said Sushma Sonde, 38, a domestic helper in Mumbai, adding that the costs of everything have risen. “I have two children and they’re both my own.”

9.1. GeM portal to train and onboard new cooperatives, says CEO PK Singh

ET Gov., 3 jun, 2022

GeM team will be hand-holding and training cooperatives to onboard them on portal so that they can take advantage of buying goods and services at competitive rates from the platform.

The Government e-Marketplace (GeM) team will be hand-holding and training cooperatives to onboard them on GeM so that they can take advantage of buying goods and services at competitive rates from the platform, a senior official said. To start with the process, GeM would first onboard 1,475 multi-state cooperatives, GeM CEO P K Singh said.

The Union Cabinet on Wednesday approved a proposal to expand the mandate of GeM by allowing procurement by cooperatives. Presently, the registration of cooperatives as buyers was not covered within the existing mandate of GeM.

Singh said the decision is ‘very big’ and would help over 8.54 lakh registered cooperatives, like Amul and IFFCO, and their 27 crore members, as they would get products at competitive rates from the portal.

“We have to convince cooperatives to register as buyers on GeM and start procurement of goods and services. We have to do it very systematically. We will inform them, and reach out to them (both bigger and smaller cooperatives). We will do hand-holding, awareness programmes for them, physical demonstration and a lot of campaigns because the numbers are large,” he told PTI.

The CEO clarified that after Wednesday's Cabinet decision, only registered cooperatives can procure from the platform and not the private sector. “The Cabinet's decision is very good for sellers which are there on GeM, as they would get a chance to sell varied items,” he added.

Citing an example, he said cooperatives like IFFCO and KRIBHCO buy fertiliser bags in large numbers and now they can take advantage of this decision by buying at GeM platform at competitive prices.

Singh said the GeM team will train the cooperatives about the process of registering at the platform. “If they would raise specific requirements, we can onboard those sellers also. We will monitor their buying behaviour for six months and see in which category they are buying more and of how much value,” he said.

As it is not compulsory for them to buy from GeM, it would be a challenging task to convince all the cooperatives to access the platform. “So for six months, we will focus on convincing them and onboarding them,” the CEO said, adding the challenge is to get data from states.

“We will make requests through the ministry of cooperatives to states for data like phone number, e-mail and contact person so that common service centres (CSC) and India Post can be tasked to contact them and explain to them the benefits of GeM,” he added.

The annual gross merchandise value from the GeM platform has increased from Rs 16,972 crore in 2018-19 to Rs 1,06,760 crore in 2021-22. The number of products registered has risen to 54,73,867 in 2021-22 from 1,41,982 in 2018-19. “In 2022-23, we should cross Rs 2 lakh crore,” he said.

The GeM was launched on August 9, 2016, for online purchases of goods and services by all the central government ministries and departments. Currently, government departments, ministries, public sector units, state governments, and Central Armed Police Forces are allowed to carry out transactions through this portal.

The portal provides a wide range of products from office stationery to vehicles. Automobiles, computers and office furniture are currently the top product categories. Services, including transportation, logistics, waste management, web casting and analytical, are listed on the portal.

It provides a national platform to over 5,768,317 products and over 4,474,030 sellers and service providers.

9.2. Amazon India collaborates with Manipur govt to sell Panthoibi Emporium products and support artisans and weavers

ET Gov. 10 Jun. 2022

This initiative is driven by the intent to encourage digital inclusion and offer economic opportunities by becoming Amazon sellers, as well as job creation.

Amazon India has signed a MoU with Manipur Handloom & Handicrafts Development Corporation Limited (MHHDCL), a Government of Manipur Enterprise to support the growth of artisans and weavers across the state.

As part of this MoU, Amazon India has launched the Panthoibi Emporium on its marketplace, under the Amazon Karigar program. Through this launch, Amazon India aims to empower the growth of over 300,000 artisans and weavers associated with the emporium. This initiative is driven by the intent to encourage digital inclusion and offer economic opportunities by becoming Amazon sellers, as well as job creation.

Sellers part of the emporium will be able to avail benefits such as personalized training for a quick start, increased customer visibility and dedicated marketing support among others. This will also enable these weavers to access a potentially wider market base, which may bring in greater recognition for their work and providing more employment opportunities. Amazon India’s customers from across the country can access and shop from a wide variety of products like Kauna Crafts - Water Reed, Manipuri Rani Phee and food items like black rice, forest forage teas, GI tagged chili, GI tagged lemon and oranges, amongst others offered by Panthoibi Emporium unique to Manipur.

In a statement, Chief Minister of Manipur, N Biren Singh said, “This association will open up unlimited opportunities for them to grow and scale their business. Aided with the right tools, technology, and insights, MSMEs can play a definite role in accelerating the growth of the Indian economy. Therefore, it is important that the e-commerce ecosystem and its key stakeholders work towards enabling more and more small businesses with capacity building activities.”

“Manipur is known for its handicraft and handloom industry across the world. The launch of Panthoibi Emporium on the marketplace further adds to our mission to make Indian arts and crafts accessible to customers and digitize 10 million MSMEs by 2025. We will continue to collaborate with organizations like MHHDCL to expand product selection by bringing in local art forms benefitting craftsmen," said Sumit Sahay, Director, Selling Partner Services, Amazon India, in a statement.

Since the launch of the Amazon Karigar program in 2016, Amazon India has onboarded more than 3,700 master weavers, co-operatives, artisans and regional APEX bodies to sell on its platform. It has also collaborated with 30 government emporiums and seven government bodies to showcase authentic crafts to craft lovers and increase market connectivity. Karigar showcases over 1.7 lakh products, including 450 unique arts and crafts from over 27 states and union territories.

Commenting on the MoU, Elangbam Jeeten Singh, Managing Director of MHHDCL said, “Our collaboration will play a pivotal role in enabling the 300,000 artisans and weavers associated with Panthoibi Emporium to accelerate their growth through ecommerce. This will bring higher visibility amongst customers who look for a huge variety of handicraft and handloom products made by craftspeople from Manipur. It will also bring attention to locally produced goods that are representative of our rich cultural heritage.”

10. Indian Railways planning to introduce Vande Bharat trains in place of Shatabdi and intercity express

Free Press Journal, 6 Jun. 2022

With the aim of reducing the travel time between two cities, the Indian Railway is planning to introduce semi-high speed Vande Bharat trains in place of Shatabdi and intercity express on all prominent routes of the country including Mumbai -Pune and Mumbai -Ahmadabad. According to sources, initially 27 prominent intercity routes of the country were identified by railway to run Vande Bharat trains near future.

Confirming the devlopment, Ashwani Vaishnaw, minister of railways said, "Indian Railway will get two more trains in August 2022, after that every month four Vande Bharat trains will be produced at different rail coach factories of the country including Latur".

Accoeding to Vaishnav, the production of Vande Bharat trains in Marathwada rail coach factory is likely to start in the next 6 months. Asked about the introduction of Vande Bharat trains on Mumbai Pune route, Vaishnaw said, "We are trying our best to introduce semi-high speed Vande Bharat trains on all prominent intercity routes by next year but it depends on the availability of rakes".

Currently, Vande Bharat trains have an only seating arrangements, these trains are initially slated to replace the Shatabdi, Jan Shatabdi and Intercity Express. However, there is also a plan to build Vande Bharat with sleeper coaches as a replacement to Rajdhani, Duronto trains in future.

During the Budget 2022 presentation, Union Finance Minister Nirmala Sitharaman had proposed to have 400 new Vande Bharat trains over the next three years. At present, the semi high-speed train is running on two routes, Delhi- Varanasi and Delhi- Katra.

Vande Bharat trains are being run without a locomotive engine and are propelled by a mechanism called distributed traction power technology that provides electric energy supply to each car in the train set. Because of the faster acceleration, the train can run at a top speed of 160 km in an hour reducing travel time by up to 25 to 45 per cent.

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- INDUSTRY and MANUFACTURE

11. Global companies look to ramp up India ops in next few years

IBEF, May 31, 2022

Investors ranging from Goldman Sachs to IBM, DHL, Brookfield, and few of the semiconductor giants have told the government that they intend to significantly expand their Indian operations over the next two to three years, amid signals from the US that several companies are looking to reduce their reliance on China.

The Rs. 2 lakh crore (US$ 25.8 billion) production-linked incentive (PLI) scheme has already seen several large manufacturers establish facilities in India, with some of them being relocated from other nations. Furthermore, some asset monetisation schemes are attracting interest from a number of global investors, particularly on the REIT and InvIT front.

India's recent progress in terms of free trade agreements has improved the investment climate, as trade partners ranging from Australia and the UAE to Canada see the country in a more favourable light. Further, the decision of several US and European companies to reduce their reliance on China in the post-Covid world has aided India.

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

12.1. International level furniture cluster near Mangaluru to come up this year: Karnataka CM Bommai

ET Gov. 3 Jun. 2022

It has also been decided to establish a green energy industrial hub in the coastal region.

An international level furniture cluster that would provide employment opportunities for the youth will be established near Mangaluru this year. Work on the project will start soon, Karnataka chief minister Basavaraj Bommai has said.

The CM was speaking after inaugurating the Enneole Hole Lift Irrigation project in Karkala taluk. It has been decided to establish a green energy industrial hub in the coastal region. Approval for setting up a furniture hub would be given soon, Bommai said.

Textile park in Karkala

A tourism circuit connecting ancient Jain Masadis in Karkala and other tourist spots in the region would be developed. Beach tourism and Pilgrimage tourism would be taken up in a big way for development this year in the coastal region. A Textile Park would be set up in Karkala, the CM said.

Boost for coastal economy

"Ministers of the coastal region have been instructed to make the districts in the region as modern developed districts. Supplementary programmes in this regard have been formulated in the budget. Work on the expansion of Karwar and Mangaluru ports has been taken up. Grants have been provided for developing 8 fishing harbours. A project to provide deep-sea fishing boats has been implemented. These initiatives would boost the economy of the coastal region," Bommai said.

24 project proposals submitted to the Centre

Lauding Prime Minister Modi as a statesman with a long term vision for the nation, Bommai listed a slew of schemes like Ayushman Bharat, Kissan Samman, and Prime Minister's Awas Yojana as revolutionary. Funds have been provided for the development of all the ports under the Sagar Mala project. Proposals for 24 projects with a total investment of Rs 2400 crore in this region have been submitted to the union government, Bommai said.

The issue of Deemed Forest has been resolved and title deeds would be issued to farmers in Kodagu, Dakshina Kannada, Uttara Kannada, Udupi and Chikkamagaluru districts by excluding 6,33,000 acres from the Deemed Forest category, Bommai said.

Government's people-centric programmes

"Drawing up and completing the Enne Hole project within our term is a distinction of our government. The Irrigation minister has proved his commitment to speedy implementation of irrigation projects. The Revenue minister has taken Revenue records to the door of the people, the ministers in this region have strived for the welfare of fishermen and weaker sections, and greater emphasis has been given for delivering social justice with a grant of Rs 28,000 crore for SC, ST welfare programmes, monthly pension for senior citizens, widows and physically challenged has been raised, 10 new chemotherapy centres and 60,000 cycle dialysis systems are being set up to improve health services for the poor," Bommai explained.

12.2. With 7 mega projects worth Rs 19928 crore, UP's Noida-Greater Noida to emerge as India’s top data center hub

ET Gov. 6 jun. 2022

The first project to be commissioned by September 2022, with an employment generation of 2,000, at Plot No.7, Sector Knowledge Park-V, Greater Noida.

Uttar Pradesh is set to become one of India’s top data centre hubs with seven mega data centre projects coming up in Noida and Greater Noida, Gautam Buddh Nagar district.

Among the projects launched in the Ground Breaking Ceremony-3 in Lucknow on Friday, an investment of nearly Rs 20,000 crore is slated to be made in the field of data centres in the next five years, 25% of all investments coming to this sector, an official statement from the UP government said.

There are seven mega projects in this sector with a total investment of Rs 19,928 crore. The top investing companies include- NIDP Private Limited (a part of Hiranandani Group of Companies) with Rs 9100 crore; Adani Enterprises (two projects) with Rs 2706 crore and Rs 2416 crore), Sify Technologies with Rs 2692 crore; NTT Global (formerly known as Netmagic IT Services Pvt Ltd.) with Rs 1687 crore; STT Global Data Centre India Private Limited (subsidiary of ST Telemedia Global Data Centre, Singapore) with Rs 1130 crore.

The accumulated investment and capacity will make UP the largest center of data storage in north India. Incidentally, the first such project to be commissioned is that of NIDP Developers Private Limited at Plot No.7, Sector Knowledge Park-V, Greater Noida. It is likely to be commissioned in September 2022, with an employment generation of 2,000.

Adani Enterprises Limited proposes to construct 50MW data centre building in a phased manner of 25 MW capacity each at Sector 80, Noida. The investment amount is Rs 2,706 crore. The proposed Data Centre Park is designed to host multiple units and data centre halls within the premises to cater to the requirements of several industries such as global technology, IT/ITeS, BFSI, media and entertainment etc.

The park will include state-of-the-art facilities like office space, conference rooms, seminar halls, etc., to enable business continuity activities for the customers. Its expected commissioning is in July 2025 with an employment generation of 1,100.

The second data centre of Adani Enterprises is in Sector 62, Noida, and its expected commissioning is in June 2024, giving employment to 1,100 persons.

Sify Technologies Limited with an investment amount of Rs 2,692 crore, proposes to establish one of the largest hyperscale Data Center spread over an extent of 9.21 lakh Sq.ft at Noida in three phases. The expected commissioning date of the project is September 2023 and it will generate employment for 3,900 persons.

The project of NTT Global Data Centers & Cloud Infrastructure India Private Limited (formerly known as Netmagic IT Services Private Limited) is to build and operate a data centre facility consisting of two buildings with 90 MW, 8000 racks on full expansion in Greater Noida. It entails an investment of Rs 1,687 crore. The expected date of commissioning is April 2023 and it will generate employment for 300 persons.

The completion and launching of these projects in coming years will change the business ambience of Noida and Greater Noida, making this region comparable with top IT centres of the world, Industry department officials pointed out.

13.1. India-UAE trade pact to create job opportunities, boost economy': Goyal

IBEF, May 17, 2022

According to Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Mr. Piyush Goyal, the comprehensive trade deal between India and the UAE will assist create massive job opportunities and enhance domestic economic growth. Within five years, the bilateral accord, officially known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to expand bilateral commerce in goods to more than US$ 100 billion and trade in services to more than US$ 15 billion.

He further said that the agreement would not only open doors for Indian firms to the UAE, but also to other nations, since the UAE is a transit hub for most of Africa, the Commonwealth of Independent States, and the Gulf region. Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, and Tajikistan are all CIS countries. According to the minister, the framework is expected to create a million jobs in India, give chances for the country's startup ecosystem, and has enormous potential for participation in skill development and education. He also said that the bilateral trade between the two countries is expected to be at US$ 250 billion. The UAE has committed investments worth over US$ 100 billion in industrial, infrastructure and service investments in India.

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

13.2. India's textiles exports highest-ever in FY22 at $44.4 bn, says govt

IBEF, Jun. 1, 2022

India recorded its highest-ever textile and apparel exports of US$ 44.4 billion in fiscal year 2021-22. The export total, which includes handicrafts, showed a significant growth of 41% and 26% over the corresponding figures in FY21 and FY20, respectively.

Exports of ready-made clothes stood at US$ 16 billion in 2021-22, with a 36% share, representing a 31% and 3% increase over FY21 and FY20, respectively. Man-made textile exports were at US$ 6.3 billion, with a 14% share, representing a 51% and 18% increase over FY21 and FY20. The textiles ministry said that handicraft exports were at US$ 2.1 billion (5% share), with increases of 22% and 16% in 2021-22 over FY21 and FY20, respectively.

According to the textiles ministry, the United States was the main export destination for the country's textiles and apparel shipments, accounting for 27% of total shipments, followed by the European Union (18%), Bangladesh (12%), and the UAE (6%).

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

14.1. Best Foot Forward

The Economic Times, 22 May, 2022

Synopsis

The post-pandemic world, with its emphasis on health and fitness, could give a boost to India's footwear market Currently valued at `55,000 crore, India’s footwear market has been growing at 15% per annum in revenue terms over the past few years. India accounts for 9% of the annual global production of 22 billion pairs

Agencies. The post-pandemic world, with its emphasis on health and fitness, could give a boost to India's footwear market Currently valued at `55,000 crore, India’s footwear market has been growing at 15% per annum in revenue terms over the past few years. India accounts for 9% of the annual global production of 22 billion pairs

I am very proud of this chappal. I bought it for `103. It’s made by Relaxo. This chappal is an instrument of enormous wealth creation,” says Saurabh Mukherjea in a YouTube video uploaded late last year. Mukherjea, founder and chief investment officer of portfolio-management firm Marcellus Investment Managers, says Relaxo Footwears, the manufacturer of his proud possession, has an undisputed monopoly in the mass segment of India’s footwear market.

In the video, Mukherjea explains the rationale behind investing in Indian footwear manufacturers, particularly Relaxo, which has been growing at 18% in revenue terms over the last five years. He says the Delhi-based company, which sells low-priced chappals, has the same quality of return on capital (ROC) and operating margins as any high-end company that caters to mid- and high-tier segments.

So, why are Dalal Street’s widely followed fund managers like Mukherjea betting on footwear?

Currently valued at `55,000 crore, India’s footwear market has been steadily growing at 15% per annum in revenue terms over the past few years. Accounting for 9% of the annual global production of 22 billion pairs, India is the top footwear manufacturer in the world after China. This market is forecast to grow at 12.83% annually between 2021 and 2028, according to market research and advisory firm Mordor Intelligence.

While that offers an attractive opportunity for investors, the post-pandemic world seems to be bolstering the prospects of the footwear industry. A recovery in economies across the world after prolonged lockdowns, change in lifestyles and higher awareness about health have given a fillip to footwear demand.

WALKING OUT OF THE PANDEMIC

Covid-19 rattled several industries, and footwear was no exception. After two years of disruption, the global fashion industry is finding its feet with companies adapting to new consumer preferences and digital channels providing an impetus for growth. But it continues to face significant challenges amid supply-chain disruptions, patchy demand and persistent pressure on the bottom line.

However, the growing demand for trendy yet comfortable footwear across age groups promises huge potential for the industry, especially in China and India — the major exporters of leather footwear to developed countries. Moreover, with governments and global organisations investing substantial amounts to promote sporting events, the demand for athletic footwear has been on the rise. Another factor is the growing popularity of athleisure, with millennial parents opting for their kids footwear that are suitable for both sports and everyday wear.

While the recovery in footwear sales was sharp in Q2 and Q3 of FY22, the Omicron variant possibly shaved off up to 10% of Q4 FY22 revenues from the year-ago period. This translates into an annual revenue growth of 20-25% in FY22, which remains 7-10% less than preCovid levels. However, a recovery to the prepandemic levels is expected by Q2 FY23.

Even amid the current muted performance, a clear shift in consumer preference is visible in footwear segments.

Based on the type of products, the market is divided into athletic and non-athletic footwear. Further segmentation is done based on the end user — men, women and kids. Then, the market is further categorised based on distribution channels such as online and offline retail stores.

Health concerns due to a sedentary lifestyle during the lockdowns and the subsequent spurt in enthusiasm for sports and fitness activities are also fuelling the demand for athletic footwear. A flourishing retail ecommerce sector globally and rising disposable income levels are among the key additional factors driving sales in this segment.

In line with this change in customer preferences, 85-90% of the total stock keeping units (SKU) of footwear makers at present are in the casual and athleisure segments. However, with educational institutions and offices reopening, other segments are also expected to grow. On account of its wide reach, the ecommerce channel could clock a double-digit growth over the next two years.

SHOE SIZE IS BIGGER

There has been a change in customer preference from style to durability, particularly in tier-2 and tier-3 markets. Therefore key manufacturers have been introducing new products across price segments with a focus on women and youth.

As of FY20, the men’s segment commanded a 57.9% share of industry-wide sales while the women’s segment had a 32% share, according to a report by Statista. During the same period, the kid’s segment had a 10.1% share.

In FY25, the share of the men's segment is expected to shrink to 56% while that of women might grow to 34.1%. Since the shoe size keeps changing as children grow, the frequency of purchases is much higher in this segment. However, it is dominated by unorganised players whose products are typically priced lower than that of their branded rivals.

As of FY20, the footwear industry had a 1.5% share in the entire retail sector, according to Statista. In volume terms, India consumed 2.56 billion pairs of footwear in FY20, an annual growth of 4.5% over FY15. FY21 saw a 35% fall in sales due to the pandemic. With life returning to normalcy, a compounded annual growth rate (CAGR) of 8-10% is expected between FY22 and FY25, according to a report by Mordor Intelligence, with the total annual footwear consumption touching 2.9 billion pairs by the end of FY25.

According to a recent report published by investment promotion and facilitation agency Invest India, leather footwear is being fast replaced by synthetic and rubber products.

South India dominates the footwear market during the forecast period of 2022-27. This is due to the presence of major footwear production centres in Chennai, Ranipet and Ambur in Tamil Nadu, and Mumbai in Maharashtra. In south India, the demand for casual footwear — both leather and non-leather, active/sport footwear, and other types — is constantly growing. Products priced under `1,000 account for around 80% of footwear sales in the country. Products sold by international sports and athleisure footwear brands such as Adidas, Fila, New Balance, Nike, Onitsuka Tiger, Puma, Reebok, Skechers, Under Armour are mostly priced between `2,000 and `4,000. Meanwhile, the price of footwear sold by Indian brands such as Columbus, Liberty Shoes, Lancer, Metro Shoes, HRX, Khadim, and Relaxo are in the range of `500 and `1,400.

As of FY20, the mass segment had the lion’s share at approximately 56%, down from 62% in FY15. On the other hand, the economy, mid, and premium segments showed a growth of around 12%. However, the mass segment’s market share may further drop to 51% by FY25 while the economy, mid and premium categories are together expected to register a CAGR of 10-11% during FY20-FY25, the report says. Depending on the portfolio mix, the hike in GST could have a negative impact on sales.

KEY PLAYERS

As of FY20, online retail channels accounted for 2.5-3.5% of the total footwear sales. This is expected to clock a CAGR of 26-30% between FY20 and FY25, as per ET Prime’s research. In value terms, this translates into `25 billion in FY20 and `80-85 billion in FY25.

Here’s a look at the major footwear makers in the country and their financials.

1. BATA INDIA: A part of Bata Shore Organization, the company is India’s largest footwear retailer. It merchandises under various brands. The company markets its products through physical stores and online platforms. Headquartered in Gurgaon, it operates more than 1,415 retail stores across the country, covering a retail space of 3.07 million sq ft located mainly in malls and high-street locations in tier-2 and tier3 cities. The company’s non-retail division comprises industrial, urban wholesale, institutional business, and exports. The urban wholesale business operates through a network of 30,000 dealers while the company customises shoes for corporate customers through its institutional division.

2. LIBERTY SHOES: The Karnal, Haryana-based company is a leading manufacturer of leather footwear for all age groups under brand names such as Coolers, Fortune, Force10. It has a wide product portfolio ranging from school shoes to sports shoes, ballerinas to slip-ons, and corporate formals to casuals.

3. CAMPUS ACTIVEWEAR: A listed entity, the Delhi-based company is seen as an attractive bet by many equity analysts as they expect it to sustain the high-growth momentum, thanks to a diverse footwear portfolio, large market share, a strong distribution network and an extensive online presence. The company intends to enhance its product range in the women’s and kid’s categories while expanding and deepening its omnichannel presence. It also plans to continue to invest and integrate supply chain, diversify its revenue from operations, focus on digitisation and acquire products and brands. The company’s market share by value in the sports and athleisure footwear industry in India rose to around 17% in April-March 2021 from approximately 15% in the year-ago period.

4. KHADIM INDIA:The Kolkata-based company offers affordable fashion footwear. It reported a standalone net profit of `8.2 crore for the quarter ended December 31, 2021, up 84.68% from the same period last year. The shoemaker opened 25 new stores in the second quarter of FY22 and plans to add another 80 in the current fiscal. It currently has 800 outlets across the country and around 75% of its products are priced below `1,000 a pair. The retail business represented 47% of the company’s total revenues while the distribution business represents 32% as of FY21.

5. RELAXO FOOTWEARS: The over four-decadeold company makes slippers, canvas shoes, rubber flip-flops, EVA or ethylene-vinyl acetate-injected flip flops, PVC (polyvinyl chloride) DIP (direct injection process) shoes, sport shoes, sandals, and PVC DIP casuals. It sells its products under various brands, including Hawaii, Flite, Schoolmate, Sparx, Elena, Casualz, Mary Jane and Boston. The Delhi-based company reported a standalone net profit of `70.10 crore for the quarter ended December 31, 2021, down 22.17% from the yearago period. Relaxo has been an exceptional performer on the bourses, with its stock price registering a 41% CAGR in the last five years. The company reported year-on-year revenue growth of 11% at `743.5crore as of FY21.

6. MIRZA INTERNATIONAL: The company is into manufacturing and marketing of leather footwear. It reported a standalone net profit of `42.60 crore for the quarter ended December 31, 2021, registering a growth of 175.19% from the year-ago period. The Kanpur-based company has a presence in 119 cities, with 246 shops and 11 online portals. Most footwear manufacturers with a retail presence are expected to improve their reach in tier-1 and -2 cities through their own stores. On the other hand, expansion in tier-3 and -4 towns is likely to happen through the franchisee route, according to industry experts.

THE ROAD AHEAD

India has state-of-the-art footwear manufacturing plants. The sector has matured from manual manufacturing to automated systems. In 2018, the Indian government permitted 100% foreign direct investment (FDI) through the automatic route for the footwear sector. Further, the sector is now de-licensed and de-reserved. Growth in India’s footwear industry will continue to be market-driven. It is a highly competitive business, with the unorganised sector dominating the market and a clutch of global brands fighting for a higher market share. But with technology and quality of footwear improving year after year, the Indian footwear industry is stamping its class and expertise in the global market. And it’s marching ahead

14.2. World's third-largest fashion brand Uniqlo plans to open smaller-sized stores in India

IBEF, May 23, 2022

Uniqlo, the world’s third-largest fashion brand, plans to open a majority of its new stores in India in a smaller format, ranging from 10,000-15,000 sq. ft., as compared to most of its current store sizes, which range from 20,000-35,000 sq. ft. Uniqlo has slashed the store size in Vegas Mall in Dwarka by almost half, to about 10,500 sq. ft., and reduced it from an earlier version spanning two floors to just one floor.

According to a spokesperson, Uniqlo has no intentions to alter the size of any other existing store in the National Capital Region (NCR), where the brand has all of its six India outlets.

In FY 2020-21, Uniqlo India reduced net losses to Rs. 36 crore (US$ 4.64 million) from Rs. 64 crore (US$ 8.25 million) in FY 2019-20. In FY 2020-21, Uniqlo India reported a net income of Rs. 239 crore (US$ 30.82 million), up from Rs. 129 crore (US$ 16.63 million) in FY 2019-2020, according to Registrar of Companies (RoC) data accessed by business intelligence platform Tofler.

Uniqlo is among a host of global retailers, including Gap, Forever 21 and Aeropostale, among various other brands, to opt for smaller outlets after initially opening larger stores in India amid unjustifiable sales as compared to their sizes.

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

15. Davos meet proves fruitful for Karnataka, Rs 52,000 crore MoUs signed

ET Gov., 29 May 2022

It is the biggest investment flow received by the state in the recent past.

Chief Minister Basavaraj Bommai (center) with the team of ministers and officials at WEF summit in Davos.

The World Economic Forum's Annual Meet in Davos has proved very fruitful for Karnataka as it has succeeded in drawing huge investments. For the first time, the team led by Karnataka Chief Minister Basavaraj Bommai signed MoUs with two major companies for a total investment flow of Rs 52,000 crore.

It is the biggest investment flow received by the state in the recent past. Many more companies have expressed their keen desire to invest in the state. The expected investments from these companies would create employment opportunities for thousands of persons. The state government has succeeded in wooing the investors in a big way under the leadership of Bommai with able cooperation from Industries Minister Murugesh Nirani and TT Minister Dr CN Ashwath Narayan.

ReNew Power signed an MoU with the government to invest Rs 50,000 crore. The CM termed it a milestone in the Renewable Energy sector of Karnataka. The Lulu Group International came forward to invest Rs 2,000 crore in the state.

New Policies

Bommai also highlighted two new policies of the state - the new R&D Policy and the New Employment Policy - as part of its endeavour to make Karnataka the most attractive investment destination.

He invited the corporate captains to participate in the Global Investors Meet to be held in Bengaluru in November and the Bengaluru Tech Summit. Other companies also have evinced interest to invest in Karnataka. Siemens is taking up two projects in Bengaluru focussing on Magnetic Imaging and Diagnostics and a health-related R&D project.

The government has assured special incentives for the company to set up its production unit for modern medical equipment.

Beyond Bengaluru

Discussions were also held on the 'Beyond Bengaluru' project to draw investments to Tumkur, Hubballi-Dharwad and Mysuru cities.

Dassault also has evinced interest to invest in Electric Vehicles, Modern Production systems, industrial training for students in Digital 4.0 technology and the Smart City project in Karnataka.

Nestle has expressed its keenness to modernise and expand the Nestle Instant Coffee unit in Nanjangud.

Bharti Enterprises Chairman and CEO Sunil Bharti Mittal expressed keen interest to set up a Mega Data Centre in the state. The government has assured all the necessary cooperation to make it a reality.

CEO of Ingka Group (Ikea) Jester Brodin met Bommai and held discussions in the backdrop of an Ikea Store being opened in Bengaluru.

The Ikea store is set to be inaugurated at Nagasandra in June. The India head office of Ikea is in Bengaluru and issues related to extensive use of Bamboo and other locally available raw materials in the making of furniture came up for discussion during the Nokia has its biggest Research Centre in Bengaluru with over 7000 technocrats engaged in research related to 5G, advanced 5G and 6G technologies.

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

16.1. Ayushman Bharat Digital Mission integrates more than 800 healthcare providers by now: NHA CEO RS Sharma

ET Gov. 15 Jun. 2022

Just like the mail transfer protocol does not require both parties to use the same email, ABDM does not need everybody to be on the same platform.

More than 800 integrations with Ayushman Bharat Digital Mission (ABDM) are currently active in ABDM sandbox which will enable providing of health services like teleconsultations, diagnostic services, ambulance services and lab tests among others.

A reference app for the United Health Interface which will take care of interoperability of health services will also be rolled out in the next one month.

RS Sharma, CEO, National Health Authority said, "We have done a number of horizontal artefacts like Aadhaar, Digital Locker, electronic KYC, authentication, e-sign, and e-consent. Now we are foraying into various domains including health with ABDM. We have gone beyond platform architecture to network architecture.” Just like the mail transfer protocol does not require both parties to use the same email, ABDM does not need everybody to be on the same platform," Sharma said while speaking at a NASSCOM Conclave in Bengaluru on Monday.

As per the ABDM website, more than 22.33 crore health IDs have been created, 62,182 health facilities registered, 14,840 doctors registered, more than 5.43 lakh downloads of the Health Records App has been done, 867 integrators are active out of which 40 of them have been successful.

"United Health Interface aims to increase accessibility of services by promoting interoperability. It aims to expand the digital health service market by making it easier for a doctor to be searchable, have transparent pricing, enable easy monetisation of second consultations, and move patients towards preventive care," said Praveen Gedam, additional CEO of NHA speaking at the same event.

Those who have integrated with ABDM include companies like Narayana Health, SRL Diagnostics, practo, thoughtworks, Dr Lal Pathlabs, Paytm, Jio, Apollo Hospitals, Max Healthcare among several others.

The ABDM has developed building blocks and APIs to offer a seamless digital healthcare experience for all stakeholders – health facilities, patients and healthcare workers. The digital infrastructure developed is now accessible to health facilities and health tech players for integration.

ABDM-powered services include ABHA (Ayushman Bharat Health Account) Number capture and verification, in the testing environment called Sandbox. The key building blocks of ABDM are: ABHA, Healthcare Professionals Registry (HPR), Health Facility Registry (HFR) and Health Information Exchange & Consent Manager (HIE-CM).

These building blocks are designed to enable identification of participating entities (health care providers, patients and health professionals) and enable exchange of interoperable health data with patient consent.

"Nobody will own ABDM. Government will provide a framework. This is where one takes comfort that nobody will have a monopoly. Today, UPI may be cornered by a couple of players but there is no entry barrier, anyone can come in. One does not have to make clients, just download an application and start working. India will now become a product nation and not just a call centre-nation," added Sharma.

16.2. Tamil Nadu onboards Tata Tech for technology upgrade at 71 industrial training institutes

ET Gov. 15 Jun. 2022

Tata Technologies has said it looks to transform these ITIs across the state into modern technology centers and training facilities centres with an investment of around Rs 2,204 crore

India's technology major, Tata Technologies has announced to join ranks with the Tamil Nadu government to upgrade technology at 71 government Industrial Training Institutes (ITIs). Tata Technologies on Tuesday said it looks to transform these ITIs across the state into modern technology centers and training facilities centres with an investment of around Rs 2,204 crore.

The global tech major has also entered into a Memorandum of Agreement (MoA) with the government of Tamil Nadu for 5 years for the purpose, it said in a statement. “Along with the technology transformation of the ITIs, Tata Technologies will also be providing industrial support for trainers' training and ensuring maintenance of the new set-up,” Tata Tech said.

The collaboration with the state government is an extension of Tata Technologies’ continued efforts to implement projects of high social impact and complement nation building efforts of the government.

Post upgradation, these technology centers will not only cater to the advanced skill requirements of students but also act as technology and industrial hubs for MSMEs, the company said, adding the collaboration with the Tamil Nadu government is an extension of its continued efforts to implement projects of high social impact and complement the nation-building efforts of the government.

“This project provides us an excellent opportunity to leverage our manufacturing domain knowledge to upskill and empower the youth of Tamil Nadu,” Tata Technologies Chairman Subramanian Ramadorai said.

While highlighting the new technology adoption, the Tamil Nadu government has maintained that the objective of the MoU is to bridge the gap between academia and industry by a way of establishing modern technology centres to facilitate innovations and skill development of students and industry professionals.

“Through this collaboration, the company will leverage its product engineering expertise and manufacturing domain knowledge to create future-ready courseware and training platform that allows students to develop their skillsets in line with the requirements of Industry 4.0 technologies and be part of the rapidly transforming ecosystem,” Tata Technologies Managing Director and CEO Warren Harris said.

While quoting Tamil Nadu chief minister MK Stalin, Harris said, the collaboration with Tata Technologies is an effort to bridge the gap between demand and supply of skilled workforce requirements of the manufacturing industry.

“The upgraded technology centres will help us upskill and reskill the youth of Tamil Nadu to meet the emerging industrial requirements in the state, thereby attracting more investments, creating more job opportunities, and helping us become a $1 trillion economy by 2030,” Harris said.

Tata Technologies said it is collaborating with the Tamil Nadu government and 20 global industry partners to implement this project by upgrading the overall facilities of these 71 technology centres, developing an Industry 4.0-course curriculum, conducting training programmes, and providing equipment and software support at the new centres.

17.1. Tech-enabled healthcare system aims to finally create electronic health record for 1.3 billion Indians: Minister

ET Gov. 27 May, 2022

"With technologies like Artificial Intelligence, Cloud computing, 5G, and nanotech, we need to create a tech-supported healthcare service delivery which is resilient, reliable, and accessible till the last mile.”

India is creating a national framework for digital health intending to develop a digital ecosystem, health minister Mansukh Mandaviya said on Wednesday, underlining the government’s various initiatives in that direction and plans to generate a longitudinal Electronic Health Record for more than 1.3 billion people of the country.

“Digital health is a great equaliser and enabler to support Universal Health Coverage and Sustainable Development Goals and can help ensure accessibility and affordability of health service delivery. With prime focus on moving from siloed to an ecosystem approach for digital health, India is creating a national framework for digital health in India,” Mandaviya said while addressing a session on ‘Unlocking the Power of Digital Health’ at the World Economic Forum (WEF) Annual Meeting in Davos.

Mandaviya also exhorted India’s commitment to closing the vaccine gap and assured: “Support to Africa in taking the journey from vaccine availability till vaccination with a focus on implementation based on India’s experience of vaccination 96 percent of its population with 1st dose and 86 percent with both doses.”

“India would like to further support and strengthen our ongoing relationship with Africa. India offers to support in augmenting research and development capability of African countries on medical countermeasures,” Mandaviya said during another session on ‘Closing the Vaccines Gap’.

Mandaviya said the country has already embarked on a digital transformation of healthcare with the Ayushman Bharat Digital Mission.

“We have already issued more than 220 million Unique Health IDs along with health facilities and provider registry,” he said.

India has also utilised digital health interventions for its national program management. Health Management Information system regularly collates data regarding health programs from more than 2 lakh health facilities.

Highlighting digital penetration into various other programs, Mandaviya said the Reproductive & Child Healthcare IT platform tracks more than 120 million pregnant women for their antenatal and post-natal check-ups, delivery planning, and over 90 million children for immunization.

“Through the NCD application, we have screened more than 80 million citizens for diabetes, hypertension and cancers, in turn creating a population profile of India. Telemedicine platform e-Sanjeevani has benefited more than 390 million beneficiaries through video consultations during the Covid-19 pandemic, making it the biggest such platform in the world,” he said.

The minister also underscored the role played by the CoWIN platform during Covid-19 management.

It was India that had moved the Digital Health Resolution in WHO to prioritise the global framework for digital health.

“We have offered Co-WIN as a digital public good to other countries to aid their vaccination efforts, aligned with India’s commitment to the traditional philosophy of “Vasudhaiva Kutumbakam” - The World Is One Family. Digital health interventions can help penetrate health service delivery to the last mile ensuring equitable healthcare service delivery. With technologies like Artificial Intelligence, Cloud computing, 5G, and nanotech, we need to create a tech-supported healthcare service delivery which is resilient, reliable, and accessible till the last mile,” Mandaviya said.

17.2. Indian hospitals set for quality upgradation thanks to ISRO

IBEF, May 26, 2022

Some of India's hospitals are set to upgrade the quality of their services by leveraging space technology in emergency and critical care departments. In 2016, many healthcare organisations approached ISRO to learn the best practises in its quality domain and implement them in their emergency and critical care departments to reduce mortality rates.

These included Association of Healthcare Providers (India) (AHPI), Indian Society of Critical Care Medicine (ISCCM), Society for Emergency Medicine India (SEMI), and the Consortium of Accredited Healthcare Organisations (CAHO), according to ISRO (Indian Space Research Organisation).

Healthcare professionals have also expressed a keen interest in learning about how ISRO plans to handle the interplay between man, machine, and environment in Human Space Flight programmes, as well as the medical equipment developed by ISRO.

ISRO has been striving to serve the nation by contributing to space science and technology for the betterment of human life.

Advances in space technology have had a positive impact on society, particularly in sectors such as health care, education, communication, broadcasting, disaster management, safety and security, and land and water resource management, according to ISRO.

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

18.1.Telangana logs 26% IT export growth to hit Rs 1.83 lakh crore in FY22, generates one-third of new IT jobs created in India

IBEF, June 2, 2022

In the face of Covid-19 headwinds, India's youngest state of Telangana has logged a 26% increase in IT exports for FY 2021-22, totalling more than Rs. 1.83 lakh crore (US$ 23.62 billion) in exports. It also reported 149,506 new jobs created during FY 2021-22, bringing total employment in the sector to over 7.78 lakh, a 24% YoY increase.

According to Nasscom, Telangana alone added one-third of the 4.5 lakh new IT jobs created in the country in FY22. The state also outpaced the country's IT export growth of slightly more than 17% in FY 2021-22.

In FY 2020-21, the state recorded IT exports of Rs. 1.45 lakh crore (US$ 18.72 billion) and created 46,489 jobs, bringing the total number of IT jobs to 628,615.

When Telangana was a new state in 2014, its IT exports were Rs. 57,258 crore (US$ 7.39 billion). From 2014 to 2022, exports have grown at a CAGR of 15.67% from Rs. 57,258 crore (US$ 7.39 billion) to Rs. 1.83 lakh crore (US$ 23.62 billion), said Mr. KT Rama Rao, IT Minister.

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

18.2. India wants to go from being a chip taker to chipmaker — here’s a look at what it would take

CNBCTV18, Vijay Anand

From Tesla to Tata Motors, from Intel to Apple, companies around the world are starved for semiconductor chips — which go into computers, smartphones and other mobile communication devices, cars and aircraft, medical equipment, military systems and the gadgets we use for entertainment.

To understand how important semiconductor chips are to companies, and therefore, to economies, here’s an estimate of the bill of materials (BoM) — or the cost of semiconductor — per vehicle from consulting firm Boston Consulting Group (BCG).

Countries around the world want to build production capacity for these chips so that a similar shortage does not choke their economies in the future. India is no different. It wants to become a chipmaker, and not a chip taker, but the many pieces which make the plan wholesome need fixing too.

Incentives are always welcome, but they only work if the fundamentals are in place. Companies interested in applying under the scheme need certain things in place — foundational requirements, if you will — over and above the infrastructure they will be putting in place. These pillars are land, labour, capital and resources, such as ample electricity supply and ultra-pure water.

19.1. Tata Motors files record 125 patents related to powertrain technologies in FY22

IBEF, May 30, 2022

Tata Motors announced on May 27, 2022 that it filed a record 125 patents related to powertrain technologies in FY22. Out of the total, 56 patents were approved in the same year.

The patents filed cover a wide range of innovations and developments in traditional and new energy powertrain technologies, safety, connected vehicle technologies, body in white (BIW) and trims, and other vehicle systems.

"We have established a legacy of setting new benchmarks with cutting-edge technologies and features in the areas of new energy solutions, safety, product performance, cost of ownership, and digitalisation", said Mr. Rajendra Petkar, Tata Motors President and CTO.

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

20.1. UGC amends National Higher Education Qualification Framework to allow students to pursue dual degree

ET Gov. 31 May, 2022

In higher education, the level from 5 to 10 has been reduced from 4.5 to 8. This framework will be applicable from graduation to Ph.D.

Students who want to pursue dual degree from foreign universities can heave a sigh of relief as under a new framework, the students, who earlier could not enroll in such courses because of the varying level of qualification framework, will now be eligible to take admission in foreign universities.

The UGC has made changes in the National Higher Education Qualification Framework (NHEQF). In higher education, the level from 5 to 10 has been reduced from 4.5 to 8. This framework will be applicable from graduation to Ph.D.

It is noteworthy that the higher education institutions have established certain criteria of assessment for students and divided it into levels of 5 to 10. While 1 to 4 level covers school education.

Significantly, there are levels from 6 to 12 in higher educational institutions around the world. Scotland has the highest level of 12 in the world. New Zealand, Australia and Malaysia have level 10. In Europe, it is up to level 8. Similarly, Hong Kong and Singapore offer higher education at level 7 and Thailand at level 6.

Now, if a student goes to pursue a dual degree programme from a foreign university, then he will not have any problem as due to the changes in the NHEQF of the UGC, the qualification framework in Indian higher education will also be uniform. Also, the students will not face any problem even if they opt for any other course in the middle of studies in Indian educational institutions.

Vice Chancellors (VCs) of universities across the country have been informed about the change. In this regard, the UGC has held a meeting with the VCs of universities and college principals. Three more such meetings will be held soon in order to ensure that no problem should be faced in implementing the new framework.

After the implementation of the new framework, students will be assessed on the basis of learning outcomes.

The National Skill Qualification Framework (NSQF) of the All India Council for Technical Education (AICTE) and the Ministry of Skill Development is also from level 4.5 to 8.

UGC Chairman Prof. M. Jagadesh Kumar said that higher education across the country will now have a uniform qualification framework based on learning outcomes. "This will benefit the students the most. They will be able to switch to any programme; on the lines of school education, in higher education also, students will be assessed on the basis of learning outcomes every year."

Its purpose is to evaluate the students' knowledge and skills. In this, students will also get employment opportunities.

Prof. Kumar says that after this policy, there will be no problem regarding admission in dual degree and joint degree related courses from foreign universities.

Meanwhile, the multiple entry-exit system will also be implemented from the academic session 2022-23. It will benefit those students who had to leave their studies midway due to some reason. Students leaving a course after a certain period of time will receive a diploma and when they complete the course, the concerned university will award them a degree in the same course.

Apart from this, students of any stream will be free to choose the subjects of their choice. For instance, if students of engineering or science want, they can also opt for music education.

20.2. Data boom, digital adoption and storage mandates to push India’s data centre capacity to double by FY 2025: Report

ET Gov. 10 Jun. 2022

The corporate embrace of advanced technologies and digital infrastructure, and the increasing use of smart devices by individuals have led to a massive spurt in data and cloud usage (wireless mobile data traffic grew 31% to 253 exabytes2 in 2021), creating huge demand for data centres.

Data centre capacity in India is expected to double to 1,700-1,800 megawatt1 (MW) by fiscal 2025 from 870 MW last fiscal, powered by the troika of data boom, digital adoption and local data storage mandates. This will require investments of over Rs 40,000 crore, said CRISIL, a rating and valuation agency.

The launch of 5G services — likely by the end of fiscal 2023 — will further boost demand for data and storage capacities. Government norms on data localisation, seeking storage of sensitive data within the country, and digital initiatives would be another tailwind.

Nitesh Jain, Director, CRISIL Ratings said, “Indeed, data centres are emerging as an attractive infrastructure asset class in India. The industry is expected to add ~850-900 MW capacity during fiscals 2023-25. Mumbai, the financial capital of the country that accounts for around half of the existing capacity, is expected to add 300 MW. This growth would be supported by proximal access to sub-sea cables, optic fibre connectivity, uninterrupted power supply and availability of skilled manpower. Hyderabad, Chennai and Pune will follow suit, and likely to add ~400 MW capacity cumulatively.”

Of the ~Rs 40,000 crore investments, a third will be to acquire land, a fifth for substations, and the balance for civil work, purchase of equipment and fit-outs. Capex will also be required for captive renewable energy sources, which are cheaper than grid energy.

Rakshit Kachhal, Associate Director, CRISIL Ratings said, “With electricity accounting for 45-50% of the operating expense of data centres, there is sharper focus on an optimum mix of grid power and renewables. The share of renewables in data centre power consumption is expected to increase to 35-40% by fiscal 2025 from less than 15% now. Renewable power being cheaper will improve the operating margins of the sector by 200-300 basis points by fiscal 2025 and help sustain project’s returns on capital employed at 13-15%.”

That said, the final contours and timelines for the implementation of the Data Protection Bill and the Data Centre Policy, and the mass uptake of 5G services are upsides that can give a further fillip to demand for data centres in India.

However, the emerging sector still remains exposed to technological risks such as social engineering, cyber attack, data theft and leakages, despite high levels of security. Moreover, as the sector is still emerging in India, other vulnerabilities might unfold, so these will bear watching, mentioned CRISIL.

INDIA and the WORLD

21. Internationalisation of higher education: Centre to allow foreign universities enter GIFT City in off-campus mode

ET Gov., 19, May, 2022

The Union Budget 2022 has opened a new route for setting up of foreign universities in India and freeing them up of 'domestic regulations' - through GIFT IFSC (International Financial Services Centre).

Foreign universities are likely to open in GIFT City - where they will be free of domestic regulations - through an offshore campus/branch mode rather than a full-fledged varsity mode.

Off-campus mode of bringing in foreign varsities at Gujarat International Finance Tec-City (GIFT City) - announced in the Union Budget - were discussed at a review meeting held by the Prime Minister's Office with all stakeholder ministries and organisations on speeding up 'internationalisation of higher education' on Saturday, senior officials said.

Considering that setting up a university in India typically requires legislative approvals from Parliament or state assembly, the off-campus/branch route has been found most feasible to allow specialised courses to be offered by foreign institutes at GIFT, they told ET.

GIFT City refers to the greenfield central business district and integrated hub that is coming up in Gujarat with the promise of world class infrastructure to draw top global players. It is envisaged that foreign institutes here will be permitted to offer specialised courses in financial management, fintech, science, technology, engineering and mathematics.

Finance minister Nirmala Sitharaman recently held an interaction with several leading foreign institutes on possible participation in GIFT City.

"Several US and UK institutes have shown interest, but these are still preliminary decisions," an official in the know said. "While the academic model and systems at the GIFT campus will be entirely based on the parent university's template, there will be a facilitator mechanism via IFSCA."

The proposed off-campus model is expected to work in close engagement with top global industry and IT majors that set up base at GIFT City.

Foreign institutes that operate from GIFT will be free of domestic regulations like that of the University Grants Commission (UGC), but the latter is looking to open collaboration models on research and student exchange with them.

A dialogue is likely to be opened for the same soon and UGC will also bring in enabling regulations to permit the same with Indian universities and colleges, senior UGC officials said.

Over the last decade, successive governments have been attempting to attract top foreign institutes into India, but all such plans have failed to take off so far as the latter are wary of India's rigid regulatory regime for higher education.

The government, however, is learnt to be turning its focus once again to 'internationalisation' as also emphasised in the new National Education Policy 2020.

The PMO review in the weekend, accordingly, also took stock of the steps being taken at UGC and in the education ministry towards 'internationalisation'.

UGC is learnt to be close to finalising its regulations for allowing full-fledged foreign universities to be set up in the country. A committee set up for the same is soon expected to submit its report, officials said.

22. Digital economy is space for growth, opportunity between India, US: USIBC

IBEF, May 24, 2022

The head of the US-India Business Council (USIBC), Mr. Atul Keshap has called for the creation of structures, regulations, and a legal framework to ensure the continued vitality and growth of the digital economy sector in the US and India.

Addressing the panel of Commerce & Industry 2.0 at the India Foundation's 7th India Ideas Conclave in Bangalore on May 22, Mr. Keshap spoke about India's impressive growth, and the success of government-led digitisation efforts, and the country's status as the fastest-growing large-scale economy.

According to Mr. Keshap, there is a sweeping revolution taking place in India, and it will have a substantial positive impact on India, the US, and the entire world. After centuries of disruption, India is returning to its historic status as one of the world's largest, most dynamic, and prosperous economies,

According to a press release issued, Mr. Keshap reaffirmed the USIBC's vision of a US$ 500 billion US-India trade partnership and highlighted the digital economy as a space for future growth and opportunity.

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

23. Tata Cos Well-Capitalised, Focus on Future Growth Biz

The Economic Times, 13 Jun. 2022

Synopsis

Tata Sons infused over ₹80,000 crore and made additional secondary market purchases of around ₹10,000 crore in group companies in the past five years to strengthen their balance sheets.Now Tata Sons will focus on future growth businesses. It is possible now because all group companies are aligned and huddled together and each management is focused on goals, aspirations and performance,” Tata Sons chairman N Chandrasekaran said in an exclusive interview held at Tata Group headquarters, Bombay House.

Tata Sons infused over ₹80,000 crore and made additional secondary market purchases of around ₹10,000 crore in group companies in the past five years to strengthen their balance sheets.

The holding company of the $125-billion steel-to-consumer goods conglomerate also infused an additional ₹20,000 crore into new businesses such as the consumer app — Tata Neu, Air India, as well as upcoming forays into sectors such as semiconductors, batteries and 5G. It has also already infused as much as ₹15,000 crore since January 2022 into the resurrection of its recent airline acquisition, Air India.

“Tata Sons and group companies are well-capitalised with robust balance sheets and every major company has staged a turnaround in the last four years to contribute in a significant manner to group profits. I am happy to say today all companies have strong balance sheets and from where we are today, we do not see the need for Tata Sons to infuse any additional funds into these companies. Now Tata Sons will focus on future growth businesses. It is possible now because all group companies are aligned and huddled together and each management is focused on goals, aspirations and performance,” Tata Sons chairman N Chandrasekaran said in an exclusive interview held at Tata Group headquarters, Bombay House.

Chandrasekaran was reappointed as chairman of Tata Sons for a second term of five years in February this year. He joined the Tata Sons board in October 2016 and took charge as chairman in February 2017. Chandrasekaran also chairs the boards of operating companies such as Tata Steel, Tata Motors, Tata Consumer, Tata Power, Air India, Tata Digital and TCS, among others.

“Capital deployment has been robust across companies. Earlier, every big company whether it’s Tata Power, Tata Motors or Tata Consumer had a negative story spinning around it. Today, that commentary has changed and every company has a positive story. I am extremely proud of how all these companies have staged a turnaround backed by group synergies. Fundamentally, all initiatives we undertook had three pillars: Strengthen the core, transform the core and create future businesses,” he said.

“We followed a combination of principles and strategies over the last five years where we said, fitness first, performance next, and we capitalised all our companies," Chandrasekaran said.

Between 2017 and 2022, revenues of Tata Group have grown 1.5 times from Rs 6.5 lakh crore to Rs 9.5 lakh crore. The profit after tax grew 2.7 times from Rs 27,500 crore to Rs 75,000 crore, or close to $10 billion. PAT, excluding TCS, grew from Rs 1,100 crore to Rs 36,500 crore. ROE grew from 11.5% to 21% while ROE excluding TCS grew from 1% to 14%.

Market capitalisation excluding TCS grew 2.8 times from Rs 3.6 lakh crore to Rs 9.9 lakh crore. Including TCS, it grew from Rs 8.5 lakh crore to Rs 23.6 lakh crore.

The group is also doing some heavy lifting on its Air India acquisition.

"Air India is a hugely important business and not just a pure emotional investment. We will do all we can to make it work. I am personally spending a lot of time on Air India. We are not being negative or pointing fingers at anybody, but a lot of work needs to be done on IT systems, processes, maintenance, fleet, ground handling, HR, training, network planning. We are working on all dimensions. Air India needs the fleet properly maintained, there is flight delay because of fleet issues, we need spare capacity for fleet and engines. Our job is to address all these aspects. We are working on reorganisation of Air India through talent, training, deployment of IT systems to offer better products with a modern fleet and drone handling through data analytics. There is a significant amount of work to be done," he said. "There is no magic wand to ensure everything will be fine tomorrow morning. Be patient. We are fixing issues systematically and there will be no temporary fixes. Air India will always be the national carrier and our flagship company. It will also be a financially viable one. In the next 12-24 months there will be visible progress."

Tata Sons is now focussed on making serious commitments to five businesses — Tata Neu, which is the foray into the digital consumer business, Air India, semiconductors and precision electronics, 5G, and batteries. "5G has got the solutions proven in the lab, 4G has been proved and we are looking at commercialising the solution, 5G and 4G needs time to scale. We will also manufacture car batteries and continue to build along the value chain such as cellphones and we are committed to investing and building a global business," he said. The group is aiming to build a "5G stack" which it will aim to sell to global markets.

The new businesses may rope in strategic or financial investors depending on the kind of capabilities or strength they bring to the business, he said

Tata Sons is also betting big on building a strong semiconductor and electronics value chain with a global focus that will throw up a few lakhs of job opportunities in the next five years, Chandrasekaran said. Creating resilience in the global supply chain is a big theme and the group has identified it as an opportunity. "We are in the phase of building our electronics business and are focused on precision manufacturing followed by packaging, assembly and testing. We will continue to build along the value chain and are committed to investing and building a global business." Initially the group would focus on basic semiconductors.

The group has now initiated a transformation of core businesses focused on four themes— digitalisation, sustainability, supply chain resilience and health, wellness and safety. "Digitalisation is a journey where every company thinks data first. A sustainable transformation is the market transition we are making whether in EV or fuel, renewable energy and carbon capture and the huge commitment towards biodiversity and water consumption. We have a comprehensive plan across the group to be net zero by 2045 and every company has a goal set in terms of all these dimensions," he said.

Dismissing criticism around some of the decisions in the last five years, Chandrasekaran said, "We cannot be distracted with criticism. Some criticised us with data and some without data. All decisions are taken backed by enough conviction, belief and commitments.”

Geopolitical issues have been a risk factor in business and have intensified because of the Russia-Ukraine war. The effects of the pandemic, war and supply chain shortage are all driving higher inflation. "What looked like high growth, high inflation in January now looks like a low growth and high inflation environment globally. But I feel India stands out, India has a higher consumer spend. We see it in both discretionary and essential items across tier 1,2,3 and 4 towns. While we have to control inflation, it is important for us to protect and capture growth. So our capital expenditure on infrastructure should continue. My view is that growth creates jobs and takes care of many issues," said Chandrasekaran.

24. Saudi Tourism signs MoU with EaseMyTrip

IBEF, May 23, 2022

The Saudi Tourism Authority and EaseMyTrip have inked a Memorandum of Understanding (MoU) to use the company's travel network to enhance inbound tourism to Saudi Arabia. Through this MoU, the two will explore opportunities to collaborate on key initiatives and engage in a variety of activities to promote and enhance quality tourism experiences in Saudi Arabia, as well as extend their presence in the Indian market.

EaseMyTrip will use the partnership to boost destination awareness in India and promote the country's unique travel experiences. It will also provide specially curated tourism packages to Saudi Arabia, as well as multi-destination travel packages that comprise leisure places and a few well-known events to give greater connectivity and convenience for its consumers.

“Through the collaboration with Saudi Tourism, we aim to strengthen its awareness across our community, highlighting the destination’s unique range of travel experiences”, said Mr. Rikant Pittie, co-founder, EaseMyTrip.

Saudi Arabia is a new, unique leisure and spiritual tourism destination that is yet to be discovered, said Mr. Alhasan Aldabbagh, Saudi Tourism Authority Chief Markets Officer – APAC. As for Arabia's true home, Saudi Arabia provides fascinating heritage sites, an authentic cultural experience, and breathtaking natural beauty, making it ideal for the curious, adventurous Indian traveller.

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

25. Philippines eyes Indian made LCAs and LCHs, ties up with HAL to upgrade military aircraft fleet

ET Gov., 17, May 2022

HAL has signed a MoU with Philippine Aerospace Development Corporation in April that may lead to export of Light Combat Aircraft, Light Combat Helicopter and Light Utility Helicopter

Breaching another technology milestone in the defence sector, state-owned aerospace and defence PSU Hindustan Aeronautics Limited may soon join ranks with the Philippines government that looks to upgrade its fleet of military aircraft.

The proposal comes soon after a deal to induct anti-ship Brahmos missiles was signed between India and Philippines. As per the latest reports HAL has signed a Memorandum of Understanding (MoU) with Philippine Aerospace Development Corporation (PADC) in April that may lead to export of India’s Light Combat Aircraft (LCA), Light Combat Helicopter (LCH), Advanced Light Helicopter (ALH) and Light Utility Helicopter (LUH).

It is yet to be seen how the defence cooperation between the two countries move ahead once new administrator Ferdinand Marcos Jr takes over the presidency of Philippines in June.

So far the Philippines faces a direct threat from China that has refused to acknowledge the arbitration order granting Philippines sovereignty over the West Philippines Sea. Philippines considers the West Philippines Sea as its Exclusive Economic Zone (EEZ) but China wants it to remain as part of the South China Sea over which it claims full control.

Marcos Jr has his task cut out for him. He will either oppose China’s stance to claim its rights over the West Philippines Sea or face reprisal in his own country. Most of the population in the Philippines are against China’s bullying in the South China Sea region. No wonder, Brahmos missile batteries have been inducted.

If there is one weapon that China fears the most, it’s the Brahmos supersonic cruise missile, considered the most lethal in its class in the world. China had even raised objections (even diplomatically) when Brahmos carrying Su-30 MKI fighters of the Indian Air Force (IAF) landed at upgraded Advanced Landing Grounds (ALGs) in Arunachal Pradesh, close to the Line of Actual Control (LAC) between India and China.

Earlier during his election campaign, Marcos Jr had indicated that he plans to resolve issues with China through bilateral dialogue. Many believe China does not think that way. China which is on an expansionist mode is unlikely to give heed to countries like the Philippines that have not aligned with it against the US or the Quad (an agreement between the US, India, Australia and Japan).

The Quad nations have been regularly sending warships into the South China Sea to establish rights of passage. Unlike Pakistan, which continues to receive Chinese military hardware, if not for anything else but to keep India on the tenterhooks, the armed forces in the Philippines have relied so long on antiquated equipment supplied by US allies like South Korea.

The fighter aircraft operated by the Philippine Air Force are the FA-50PH that are little more than a supersonic trainer aircraft built by South Korea. Its assault helicopters are from Turkey and are no longer a potent threat.

The Philippine Air Force is on the lookout for light combat aircraft. It has been established that the Light Combat Aircraft (LCA) developed by HAL and being inducted by the IAF are the best in its class in the world.

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AAPI

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Monday 20 June 2022

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NEWSLETTER, 20-VI-2022

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

- INDUSTRY and MANUFACTURE

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