AAPI: NEWSLETTER, MAY 2024

DELHI, MAY 2024

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Despite persistent global challenges, overall exports are estimated to surpass last year’s highest record.
22. The Imitation Game
23. Gender equity hopes pinned on Melinda French Gates’s charity.
24. GenAI Set to Create Impact Not Seen or Imagined: Chandra
25. 17 firms under IT hardware PLI to start production this year: IT Secretary

* * *

DELHI, MAY 2024

NEWSLETTER, MAY 2024

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1. ED Can’t Arrest Once Court has Taken Notice of Complaint: SC

ET, 17 May, 2024

In a significant ruling, the Supreme Court on Thursday ruled that Enforcement Directorate cannot arrest an accused booked under the Prevention of Money Laundering Act (PMLA) once the court had taken cognisance of its prosecution complaint (equivalent of a charge sheet).

IANS

The Supreme Court made it clear that in cases where an accused was not arrested till the time ED filed its prosecution complaint, they could not be arrested afterwards without court’s permission.

The special court must first issue a summons (not warrants) and, if the accused duly answers that summons, the person could not be seen as being ‘in custody’, the court held.

A bench comprising justices AS Oka and Ujjal Bhuyan held: “After cognizance is taken of the offence punishable under Section 4 of the PMLA based on a complaint under Section 44, ED and its officers are powerless to exercise powers under Section 19 to arrest a person shown as accused in the complaint. If ED wants custody of the accused who appears after service of summons for conducting further investigation in the same offence, ED will have to seek custody of the accused by applying to the special court.”

The order adds that after hearing the accused the special court “must pass an order on the application after recording brief reasons. While hearing such application, the court may permit custody only if it is satisfied that custodial interrogation at that stage is required even though accused was never arrested under Section 19 (of PMLA).”

The apex court held that special courts can even grant exemption from appearance in a case where the accused shows sufficient cause.

The ruling adds: “If the accused does not appear, the special court can issue a warrant in terms of Section 70 CrPC. The special court must first issue a bailable warrant. If it is not possible to effect service of bailable warrant, then the recourse can be taken to non-bailable warrants.”

The bench further ruled that “a bond furnished according to Section 88 of Criminal Procedure Code is only an undertaking by an accused who is not in custody to appear before the court on the date fixed.” Therefore, an order accepting bonds under Section 88 from the accused does not amount to a grant of bail, it added.

The judgment was passed in a case questioning whether an accused in a money laundering case must meet the stringent twin-test for bail when the special court has taken cognizance of the offense.

The petitioner, one Tarsem Lal, had challenged a December 2023 order of the Punjab and Haryana High Court which denied him anticipatory bail in a money laundering case registered against him.

SC also ruled that an accused appearing before a special court pursuant to summons need not apply for anticipatory bail. The apex court had earlier reserved its judgment on April 30.

2. Agility & leadership for organizations in VUCA-BANI world: Synergy of skills is mantra of game changer

ET Gov. 9 May, 2024

The Second World War heralded the end of the League of Nations and the birth of the UN. The time has come when the World needs an Agile UN. The moot question is what obstacles must be overcome and how does one accelerate in creating an agile organization? Let’s think and act – opportunities beckon.

The posit is – How do Organisations survive in such a VUCA-BANI environment?

Startups have demonstrated the recipe for seismic changes and professional blitzkrieg. Small ideas and small teams with a big impact marvel themselves with agility. Agile organisations adapt quickly to unexpected, unknown circumstances and survive in them.

They set priorities, show swift change, and are transparent, inclusive and non-hierarchical. They accept an uncertain and ambiguous future, realign their sails and redefine their direction before they reset their course and vector their energies.

There are two key drivers of the global new world order – technology and data. While data is touted as the new oil and has a huge information overload bandwidth comprising information and disinformation, technology the new oil refinery on the gallop disrupting organisations and business models.

The well-known VUCA ecosystem is compounded by Brittleness, Anxiety, Non-Linearity, and Incomprehensibility (BANI). Let us analyse the Russia-Ukraine War, which is over 800 days and counting, or the ongoing Middle East Conflict, both reminiscent of BANI.

Brittleness of the warring factions can be observed from an inherent Illusion of Strength, Anxiety of the sons of the soil, world community and UN is writ large on the likely escalation into a WW3 or nuclear threat and hence there is only an Illusion of Control, Non-Linearity depicted by the randomness of events and an Illusion of Predictability and Incomprehensible with strategists professing outcomes but the sequence of events forcing them to fresh learnings, unlearning and relearning personifying an Illusion of Knowledge.

The posit is – How do Organisations survive in such a VUCA-BANI environment?

Organisations need to be lean and agile, challenging the status quo, and re-evolving to meet the dynamic needs of changes being prompted by the environmental realities in time quantum. In effect, the growth and sustainability in the new world order epitomise the biological amoeba. Agile organisations have developed to endure in an environment that is unpredictable and changing quickly, much like biological systems.

These groups exhibit both stability and dynamism. They prioritise their clients, are inclusive, transparent, and non-hierarchical, and quickly adjust to changes in their surroundings. These kinds of organisations are thought to be significantly more prepared for the future than traditional ones. Organisational agility must be adaptive, embrace technology and consistently enhance their technical thresholds, be led by dynamic audacious transformational leaders with strategic orientation, quick decision-making skills and take failures.

Remember, failure is not an option, it is not a catastrophe but failure to learn from failure certainly is!

Since the agile environment is in charge of forming the culture and mindset in a volatile, uncertain world, it calls for entirely different kinds of leadership. Agile organisations must develop a culture of systems thinking to develop the tree view and design thinking to fix the wood view with a customer user orientation mapping and accomplishing unmet needs.

Design thinking develops a performance and action mindset which comprises two clear stages - designing the thinking, the mind game, and thinking the actionable design which includes skill sets and cerebral-physical toolkits. What then are the attributes of Agile Organisations, Agile Teams and Agile Leaders? My experience encapsulates the credo of POISE – here goes!

First, Purpose with Passion. Agility is about creating a purpose, identifying progressive goals, key related activities and time-bound KPIs. Purpose ignites the mind, do goals energise and fire the passion to perform and achieve targeted results. The do goals must embrace technological and infrastructural upgrades.

Second, Ownership with Optimism. Goals envisioned to develop ownership. Ownership builds audacious leaders and teams with strong bonds of trust. It connects leaders to the leader, so important in team building. Failures are a part of the journey and must be viewed as stepping stones to success – optimism in tough times and headwinds is important.

Taking ownership is an infectious exercise and is best personified in “the mother-child” relationship- organisations and leaders must adopt it! The aura around optimism of ‘to do goals’ creates positivity, and success and propels ownership into an inseparable bond of ‘Making Results Happen’.

Third, Initiative and Innovation. Challenging the status quo and embracing change requires taking initiative and innovative thinking. Innovative thoughts are a unique combination of creative and critical thinking. Initiative through innovation is manifested by continually thinking like a professional of action and acting like a professional of thought.

A change from a reactive to a proactive mindset, design thinking and an inventive approach to problem-solving with a creative balance for meaningful value propositions are some of the leadership traits that help organisations adopt an agile innovative culture.

Fourth, Skills and Synergy. Skill is the new collar and organizational culture must profess continuous learning, reskilling and upskilling. Skill development enhances the power of ME, which directly results in organizational development as the power of WE through the multi-skilled teams. The empathy of leaders is an important trait.

Hence, the myriad of skills and their orchestration through synergy is the jugular vein of a successful organization. Synergy of skills is the mantra of game changers.

Fifth, Experimentation, Efficiency and Effectiveness. Today is an era of experimentation- think big, act seismic, fail fast, recover faster and continue to perform. One must always prioritise events and activities with deep thought. Doing the right things builds effectiveness and doing them right the first time builds efficiency.

Agile organisations must practice POISE boldly. A closer look at the geopolitical and geostrategic turmoil in the ongoing wars has a great message. The return to peace from war happens when the Nations involved sit at the table and talk harmony or when a comity of Nations under the United Nations umbrella create consortiums of universal peace and tranquility. Neither is happening.

(Lt Gen Dr Anil Kapoor AVSM, VSM (Retired) and Prof. (Dr.) Manoj Joshi are VUCA experts: Views are personal)

3. Trucks taking trains! This is how Amul milk is reaching you faster, cheaper

ET, 24 Apr. 2024

The Dedicated Freight Corridor Corporation of India is moving trucks on rail to transport goods such as milk from Gujarat. Is it a win-win situation for both road and rail networks? 

This is not a very common sight in India – trucks moving on trains. And the potential of this method in reducing logistics costs is yet to be unlocked.

The Dedicated Freight Corporation of India Limited (DFCCIL) is attempting to do just that. As part of its new service, the wholly owned enterprise of the rail ministry is carrying trucks on railway rakes on the Western Dedicated Freight Corridor. The truck-on-train service is popularly known as RORO or roll-on/roll-off service.

DFCCIL is currently running the RORO service on a stretch between New Rewari in Haryana and New Palanpur in Gujarat, potentially eyeing business from leading milk producers in Gujarat who send hundreds of trucks from the state to the national capital region (NCR) every day. For example, Amul sends about 200 to 250 trucks via road from Gujarat to Delhi every single day.

But why should one move trucks on trains when you have roads?

Before we get there, here’s how the service functions.

Loaded/unloaded trucks move up a ramp onto rail wagons, forming a rake which is hauled to the destination. Prior to moving into the wagons, trucks are weighed and passed under a height gauge to make sure they meet the guidelines. Once the train reaches the destination, trucks can roll off, and move to the end point. In short, while the truck takes care of the first mile and last mile of goods movement, the train takes care of the rest.

DFCCIL was set up in 2006 for the construction, maintenance, and operation of dedicated freight corridors (DFCs). The core idea behind DFCs was to move freight trains from the over-congested Indian Railways’ network, which runs both passenger and freight trains, leading to slow speed of freight trains. The Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) are among the largest projects undertaken by the Indian Railways at an expenditure of about INR1.25 lakh crore. While the EDFC is currently operational between Dadri in Uttar Pradesh to Son Nagar in Bihar, the WDFC is operational between Dadri to Sanand in Gujarat.

RORO’s pull factor

“You can’t eliminate trucks on the road by the virtue of their design, their advantages or by virtue of the size of the consignments they carry. So why not collaborate? We let the trucks come to us. It is cheaper to send goods via trucks on rail than by road,” says Srinivas Nanduri, former director-operations and business development at DFCCIL.

Pull factor #1: Cost - DFCCIL last year signed an MoU with Gujarat Cooperative Milk Marketing Federation, which owns Amul, to send 25 trucks via the RoRo service from New Palanpur, Gujarat to New Rewari in Haryana. Moving a truck on this stretch, which is approximately 640 kilometres, costs around INR32,000. DFCCIL is trying to attract this traffic to rail by pricing the service at INR28,000. Truck operators can save on multiple expenses such as toll charges, truck maintenance, driver expenses, and, most importantly, diesel.

Pricing is the most important criteria to pull trucks on to rail, if the success of the RORO service on Konkan Railways is to learn from. We will tell you more about the Konkan Railways experience in a wee bit.

To be sure, the RORO concept was adopted by the Indian Railways around 2016 but has been of little success largely because of high rail tariffs. DFCCIL, too, tried to start this service from Rewari to Palanpur in 2021. However, it did not find takers since tariffs for RORO service were higher than road.

Last year, in a circular, the Railway Board permitted special concession on pricing of the RORO service on the New Rewari to New Palanpur stretch of the DFC as per tonnage. So, for loaded trucks, charges in effect are — 0-45 tonnes: INR29,000 and 45-58 tonnes: INR32,000. On the other hand, empty trucks will be charged at INR21,800 per wagon.

According to DFCCIL, these rates are competitive vis-à-vis road transit costs.

“We are demanding if the railways can come out with similar liberalised pricing mechanism across the DFC network so the

traffic on rail can take a quantum jump,” says Nanduri.

Pull factor #2: Time -The DFCs are designed to carry only freight trains. So, they are much faster not only compared to the Indian Railway network but also the road. For the New Rewari-New Palanpur stretch, a truck can cover the distance in about 16 hours, against 22-24 hours taken by road.

At present, there are two rakes running on this route, each carrying 30 wagons each way. Of these, 25 wagons are dedicated to Amul as part of the MoU. The remaining five wagons are open to be booked by other companies.

Some RORO lessons from Konkan Railways

The RORO service was first launched in India by the Konkan Railway on January 26, 1999. Konkan Railway is one of the 19 railway zones in India with a stretch of about 740 kilometres of railway network running though the Western Ghats and the coastal regions of Maharashtra, Goa, and Karnataka. Initially the service was launched between Kolad (Maharashtra) and Verna (Goa) largely to absorb extra capacity on the network and tap into the road market since a large number of trucks move along the difficult terrain of the Western Ghats. It has been a consistent service ever since, contributing to about 10% to 12% of the total originating freight revenue of the Konkan Railway per annum.

At present, Konkan Railway runs one rake each side every alternate day, each carrying up to 50 trucks at a time from Kolad, Maharashtra to Surathkal, Karnataka. An interesting mix of companies use this service for goods ranging from rubber products, fish powder, plywood, tiles, general merchandise, packaging material, etc.

“For Point A to Point B movement, if a trucker spends X amount and rail charges are X plus Y, there is no one you can convince to move to rail,” says an industry insider. But Konkan Railways’ pricing matches well with the expenditure truck operators are incurring on road. Rates are adjusted dynamically to changes in diesel rates which is the biggest cost in truck operations.

Also, Konkan Railways allows even a single truck to be booked for the service, rather than operators having to book the entire rake. This has been a key factor in attracting small truckers with one or two trucks. There are fixed charges for load up to 15 tonnes, beyond which there are additional per-tonne charges. Truck drivers are allowed to travel in the truck with a second-class journey ticket.

A win-win situation despite challenges

Despite being a time and money saver, rail has its own challenges.

The biggest reason why companies do not prefer rail over road is that unlike road, rail does not offer end-to-end connectivity. So, if a customer chooses railways, goods have to be loaded onto a truck which is then taken to a rail terminal. Here, goods have to be unloaded from the truck, and re-loaded onto the rail wagon. When the train reaches the end destination, again they have to be loaded onto a truck and moved to the final destination. Besides waiting time, loading and unloading at multiple points is a cumbersome task and comes at an extra cost.

Also, not all companies have the huge volumes of load to fulfil the railways’ criteria of moving goods which is up to 1,000 tonnes. Aggregation of load from multiple parties is something that has not taken off and is a time-taking exercise. “There are so many SMEs across multiple industries who produce just 10 tonnes to 20 tonnes a day. These will have to wait for accumulation of load from other parties if it has to go by rail,” says Nanduri at DFCCIL. Hence sending cargo by trucks via road is a much simpler and quicker way to transport for most companies.

Some industry quarters believe that the RoRo service is not a very efficient service in terms of total weight-carrying capacity per rake. For instance, wagons are designed to carry 50 to 68 tonnes of goods. Trucks mostly carry 10 to 18 tonnes of goods. So, this means, if a train carries one truck per wagon, it is carrying less weight than its capacity.

However, the truck-train combination is a win-win for all stakeholders. While it may help meet capacity utlisation goals for the railways, for truckers, it saves transit time and costs on fuel, drivers, toll charges, etc.

The road ahead

DFCs today are in a much better position to replicate the success of the RORO service which was pioneered by Konkan Railway 25 years back. First, the DFC network, as opposed to the congested Indian Railways network, has ample spare capacity to provide this facility. At present, the DFC network is very much underutilised. “For DFCs, the line capacity is to run 120 trains per day. However, on EDFC, we are touching 70-75 trains a day. But on WDFC, we are only touching 40 to 45 trains a day,” informs Nanduri.

Also, the DFC network is designed to carry much higher volumes of cargo than normal tracks and is capable of running longer trains on tracks that run parallel to high-traffic road corridors of Delhi-Mumbai and Delhi-Kolkata. One of the challenges with RORO has been the restriction on carrying bigger trucks due to the low height of overhead electrical wires. However, the same is not a constraint for DFC since it has higher overhead electrical wires.

Nanduri believes there is enough demand on both WDFC and EDFC and the service can be scaled throughout the length of the DFC network. However, DFCCIL would need to expand its capacity if demand increases for RORO. The service needs flat wagons as opposed to box-like wagons used for other commodities. Since these wagons are not much in demand, manufacturing of these wagons is minimal. The railways have planned to procure about 1,000 wagons for the RORO service.

4. India’s warehousing surge: Expansion, mechanization, automation to fuel the needs of growing economy.

ET Gov., 17 May, 2024

“The capacity expansion of Central Warehousing Corporation has been phenomenal. In the last three years we have created around 45 lakh square feet of capacity. Last year itself we created about 21 lakh square feet of capacity. We are expanding in terms of warehousing capacity and we are also making efforts to modernize the warehouses.

“Since CWC has been building warehouses since 1957, many of our assets are old. We are going in with private investment for modernization of these old assets. In the last financial year we have finalized 20 locations where we have received commitment for ₹1000 crore of investments. For this financial year, we have finalized 61 locations and we are expecting ₹2000 crore of private investments.”

This was stated by Amit Kumar Singh, Managing Director, Central Warehousing Corporation (CWC), in conversation with Anoop Verma, Editor (Desk), ETGovernment. In the interview that follows, Amit Kumar Singh sheds light on the initiatives that are being taken to expand and diversify the business of CWC.

Edited excerpts:

Since inception in 1957, how has Central Warehousing Corporation (CWC) transformed itself from core warehousing services company to a complete logistics services provider to cater to the current market needs?

Our journey from 1957 to 2024 has been one of expansion and diversification. When CWC started, our mandate was to provide the government with support for the public distribution system. We were providing storage related facilities to the Food Corporation of India. Over a period of time, the mandate has expanded to include several other sectors.

In 1957, CWC began its journey with presence in just seven locations. Between the 1960 and 1980, capacity was increased to 37 LMT with 319 warehouses. From 1980 to 2000, the focus turned towards bonded warehousing, ICD and CFS facilities, industrial warehousing, construction of port terminals and other such infrastructure.

In the next twenty years, 2000 to 2020, we ventured into PFTs (Private Freight Terminal) and ICPs (Integrated Check Post). First ICP at Attari during 2012 was also made operational. Since 2020, CWC is focusing on cold storage, e-commerce, MMLPs (Multi Modal Logistics Park), commodity parks and other areas of business.

What kind of infrastructure is CWC operating at present?

Currently, we are operating a network of over 550 warehouses with a total storage capacity of approximately 130 lakh metric tonnes. We have experienced growth not only in terms of storage capacity but also in the terms of the businesses that we serve. The agri-sector players are major users of our warehousing facilities. Much of the agri-business is driven through government agencies like Food Corporation of India, NAFED, NCCF and State Civil Supplies Corporations. We are also moving into private agri-business. There are several private agri-businesses which are now using our end-to-end solutions.

The list of non-agri businesses that we cater to is really large. We cater to a diverse clientele varying from government organizations, private companies, PSUs, retailers, traders, customs, cold chain operators, farmer bodies and e-commerce giants. We manage our warehouses through our fourteen regional offices and four satellite offices. All kinds of industrial commodities are stored with us: FMCG, industrial products, durables, textbooks of NCERT and other institutions, paints, tyres, etc. All the major e-commerce players are using our warehousing services: Amazon, flipkart, Reliance, Blinkit, BigBasket and others. Many smaller e-commerce players, about 40 of them at present, are also with us.

The expansion and diversification in CWC is a continuous process. We continue to build warehouses and other infrastructure in areas where there is a requirement. We continue to innovate to further enhance the scope of our services.

The e-commerce markets have become very popular in the last 10 years, especially in the urban areas where people prefer to buy online. Do you see e-commerce as a major growth opportunity for the warehousing sector?

The e-commerce industry is definitely a major driver of growth. We started looking into the e-commerce business seriously in the year 2021. Then we had a small e-commerce capacity–about 6 lakh square feet. Today our e-commerce capacity has grown to 80 lakh square feet. In just three years, the e-commerce capacity has gone up by 12 times.

The requirements of the e-commerce industry are different from the warehousing services that we provide to the agribusiness and other businesses. We had to make changes in our systems and policies to align our infrastructure to the needs of e-commerce. Today we offer infrastructure of international standards to the e-commerce players.

The e-commerce industry requires highrise warehouses that are amenable to mechanization. The floor has to be smooth and seamless. In most cases, we have to provide only the enabling infrastructure – the e-commerce companies bring their own technologies and systems.

How does CWC leverage emerging and digital technologies to enhance processes such as supply chain and warehousing management, booking and clearance, and other operations to promote ease-of-doing business?

The business processes of CWC are digitized. We deployed Warehouse Management System way back in 2018 with 20 pilot warehouses. After that various aspects of our business were digitized. Our warehouses have Electronic Lorry Weighbridges. We have the e-office system in our offices and warehouses.

The attendance of our personnel is marked through mobile apps and geofencing. We have a virtual hiring and appraisal system. CCTV systems are installed at more than 450 of our warehouses. The customers can, at any time and from anywhere, log into the online system to check the condition of the warehouse. We also have an online complaint system.

The customers don’t need to have a physical interaction with us. They can log into our system and if our warehouse space is available in the area where they need it, they can book the space online. The billing system and the bill tracking system are online.

Digital technologies continue to evolve. What steps are you taking to further modernize your digital systems?

Now we are in the process of implementing an ERP solution which will bring seamless integration in all our digital systems. We are implementing IoT and AI solutions for better floor management in our warehouses. We are in discussion with various agencies for the implementation of AI based mechanized systems in our warehouses.

CWC is providing pest control services to several major players, including the airports and aircraft operators. Why did you decide to enter into this business?

Pest control business is a natural extension to what we have been doing. We started with food grain storage which requires scientific preservation. The technical workforce that we have consists of personnel who are well trained and certified in handling chemicals and deploying preservation systems. Several agribusinesses and other commercial ventures are using our pest control services. During the Covid pandemic, CWC was the only government agency that was providing fumigation services. The aircrafts flying during this period were being fumigated by CWC professionals. Now we are looking at expanding the pest control services in a big way, by expanding into several other areas.

India could become the third largest economy in the near future, after the USA and China. How do you see the growth in CWC’s business in the times to come?

CWC is growing at a healthy pace. We are not only expanding our capacities, we are also diversifying. We are modernizing and upgrading our infrastructure.

The capacity expansion of Central Warehousing Corporation has been phenomenal. In the last three years we have created around 45 lakh square feet of capacity. Last year itself we created about 21 lakh square feet of capacity. We are expanding in terms of warehousing capacity and we are also making efforts to modernize the warehouses. Since CWC has been building warehouses since 1957, many of our assets are old. We are going in with private investment for modernization of these old assets. In the last financial year we have finalized 20 locations where we have received commitment for ₹1000 crore of investments. For this financial year, we have finalized 61 locations and we are expecting ₹2000 crore of private investments.”

We are also getting into end-to-end logistics to provide value added services to our agri-customers. These value added services include cleaning, sorting, storing, packaging and facilitating e-market options. Our own capital investment budget is also increasing. Last year we made investments of about ₹560 crores. This year we are investing about ₹700 crores. We are expanding through our own resources and through private investments.

5. Southern India reels under severe water scarcity as reservoir levels plunge to 15 pc: CWC

ET Gov., PTI, 17 May, 2024

Water level in Cauvery basin reservoirs continues to plummet

With the southern region most hit at just 15 per cent total live storage capacity in reservoirs, the storage capacity this year is below the average of last 10 years during the corresponding period, the Central Water Commission (CWC) data has revealed. The CWC's analysis also indicated a week-on-week decrease in storage levels, affecting not only the southern region but also the nation as a whole.

As of last Thursday, the southern region's reservoir capacity stood at 16 per cent, dropping from 17 per cent the previous week.

The bulletin from the CWC said the southern region has been severely impacted, with reservoirs operating at only 15 per cent of their total live storage capacity.

The data from the CWC shows that storage levels this year are lower than both the corresponding period last year and the ten-year average for the same period.

Nationally, out of 150 monitored reservoirs, the total live storage capacity is 178.784 billion cubic metres (BCM), approximately 69.35 per cent of the estimated 257.812 BCM created across the country.

However, the live storage available in these reservoirs currently sits at 27 per cent, down from 36 per cent recorded last year and 32 per cent on average over the past decade.

Compared with historical data, the bulletin highlights that the current live storage is only 79 per cent of last year's levels and 92 per cent of the 10-year average for the corresponding period.

The storage during the current year is lower than that of the corresponding period last year in all of the country while it is below the average storage of the last 10 years during the corresponding period in northern, eastern southern and western.

The southern region, encompassing Andhra Pradesh, Telangana, Karnataka, Kerala, and Tamil Nadu, has a total live storage capacity of 53.334 BCM. According to the reservoir storage bulletin dated May 9, the available live storage in these reservoirs is 7.921 BCM, constituting only 15 per cent of their total capacity.

In comparison, last year's storage during the corresponding period was 27 per cent, and the 10-year average was 21 per cent of the live storage capacity.

The northern region, which comprises Himachal Pradesh, Punjab, and Rajasthan, has 10 reservoirs under CWC monitoring with a total live storage capacity of 19.663 BCM. The bulletin reports the current live storage available in these reservoirs at 5.759 BCM, representing 29 per cent of the total live storage capacity.

During the corresponding period last year, the storage was 37 per cent, and the 10-year average was 33 per cent of the live storage capacity.

Similarly, the eastern region, including Assam, Jharkhand, Odisha, West Bengal, Tripura, Nagaland, and Bihar, has 23 reservoirs with a total live storage capacity of 20.430 BCM. The live storage available in these reservoirs currently stands at 6.952 BCM, which is 34 per cent of the total live storage capacity.

In contrast, last year's storage during the corresponding period was 31 per cent, while the 10-year average was 34.2 per cent of the live storage capacity.

The western region, covering Gujarat and Maharashtra, has a total live storage capacity of 37.130 BCM. As per the reservoir storage bulletin, the available live storage in these reservoirs is 10.339 BCM, which is 28 per cent of the total live storage capacity.

Compared with last year's storage during the corresponding period (34 per cent) and the 10-year average (29 per cent), the current year's storage is notably lower.

Lastly, the central region, comprising Uttar Pradesh, Uttarakhand, Madhya Pradesh, and Chhattisgarh, has 26 reservoirs under CWC monitoring with a total live storage capacity of 48.227 BCM. The live storage available in these reservoirs is reported at 16.687 BCM, representing 35 per cent of the total live storage capacity.

While this is a decline from last year's 41 per cent, it is an improvement compared to the ten-year average of 33 per cent during the corresponding period.

- Agriculture, Fishing and Rural Development

6. Solar innovation: Govt-industry collaboration to build bright economy illuminated by sun's rays

ET Gov. 27 Apr. 2024

The potential for innovation and positive change is limitless as the nation embraces cleaner and more sustainable energy sources. By developing smart grid technologies and promoting standardisation and interoperability, collaboration between governments and industries can drive the development of these standards as well.

By working together, governments and industries can unlock the full potential of solar energy.

Rising temperatures and shifting weather patterns have made climate change a serious problem in the modern age. Ignoring these challenges has an adverse impact not only on the environment but also on the livelihoods of future generations.

In the current battle against climate change, solar energy, with its potential to harness the abundant power of the sun, holds the key to a cleaner and greener world. However, unlocking this potential requires more than just technological advancements. It calls for a supportive environment created by government policies and industry experts.

This is where government-industry collaboration became the driving force behind solar energy innovation. They have implemented several initiatives to address ongoing issues and meet the net-zero target. In fact, despite the current government's commitment to climate action, the collaboration is focusing more on developing new solar innovations and increasing access to solar energy for all communities, especially those most vulnerable to the impacts of climate change.

The need for innovation

The solar industry has witnessed remarkable progress. According to the Central Electricity Authority (CEA), it was estimated that India’s solar power capacity at 292.6 GW will surpass the thermal generation capacity of 276 GW (252.7 GW of coal and 24.8 GW of gas) by the financial year 2029–30. Meanwhile, the renewable energy installed capacity is expected to increase to 62.4% of the total installed capacity. Thus, in order to gain more traction and achieve the net-zero target, the country needs solar technologies that are:

More efficient: Maximising energy output and lowering dependency on conventional grids are achieved by converting more sunlight into electricity.

Cost-effective: Though the adoption of sustainable solutions has dropped costs in many ways, more cuts are required to make solar energy affordable for a larger group of people and encourage widespread adoption.

More diverse: The business is now dominated by silicon-based solar panels, but diversification into substitute materials can certainly result in improvements in cost and efficiency.

Improved integration: To handle variations in energy production and effectively integrate solar energy with the current infrastructure, smart grid technologies have become a necessity rather than a luxury.

The power of collaboration

Governments and industries possess unique strengths that, when combined, can propel solar innovation forward. Here, let's delve into the details of how their collaboration fuels progress:

Government funding: Public funding can support high-risk, fundamental research that private companies might shy away from. This fosters a spirit of exploration and lays the groundwork for future commercialisation. In fact, by fueling R&D programs, the collaboration can power the innovation wave that drives advancements in solar innovation, efficiency, and manufacturing techniques.

Industry expertise: Private companies bring their technical know-how and market knowledge to the table. They can translate scientific discoveries into practical applications, ensuring innovations are commercially viable and meet consumer needs. As a result, collaborations allow researchers and businesses to work in tandem, paving the way for new trends to have a clear path in the market.

Shared goals: Both governments and industries share a common interest in a sustainable future powered by clean energy and net-zero targets. This is where collaboration fosters a shared vision and commitment, leading to a more focused and efficient approach to solar energy innovation.

Initiatives: Driving solar innovation

National Solar Mission (NMS): The National Solar Mission (NSM) intends to advance the development and implementation of solar energy for both off-grid and grid-connected applications. In order to encourage the use of solar energy, it establishes aggressive goals for the expansion of solar capacity and provides financial incentives, subsidies, and regulatory assistance.

Renewable Energy Systems, including the Solar Energy Research Initiative: The initiative's goal is to build national research capacity to reduce the cost of solar energy through pre-competitive translational research, oriented solar research, and human and institutional capacity development. SERI has contributed to the formation of a critical mass of researchers by rekindling the interest of experienced researchers in related fields in solar energy research and attracting younger researchers to the field of solar energy. This has fostered a thriving environment for solar energy research in the country.

Pradhanmantri Suryodaya Yojana: The goal of this initiative is to make India self-reliant in terms of energy, and such a step is crucial when the country is passing through a constructive stage of development. Simply put, the idea behind the innovation is to promote electricity generation through solar energy. By focusing on the initiative, the solar PV panel market can see a surge in the upcoming days due to an increased demand for PV panels.

Solar Park Scheme: Rolled out in 2014, the initiative by the Ministry of New and Renewable Energy has the target of setting up 25 solar parks with an aggregate capacity of 20,000 MW. Furthermore, the initiative in 2023 has sanctioned 50 solar parks with an aggregate capacity of 37,990 MW in 12 states across the country. Out of this, 11 solar parks with an aggregate capacity of 8,521 MW have been completed, and 7 solar parks with an aggregate capacity of 3,985 MW have been partially completed.

Though this is not it, to achieve the desired result, the Government of India has launched various other initiatives and schemes to encourage the generation of solar power, like VGF, CPSU, Defence, Canal Bank and Canal Top, Bundling, Grid-Connected Solar Rooftop, etc.

Despite the actions, collaboration isn't without its challenges.

Bureaucracy: Government regulations and approval processes can sometimes hinder the pace of innovation. Thus, streamlining bureaucracy and fostering an environment that encourages risk-taking is essential.

Intellectual property (IP) sharing: Finding a balance between protecting intellectual property and fostering open innovation can be challenging. This is where collaboration models that encourage knowledge sharing emerged as a beacon of hope, ensuring fair returns for research and development.

Future prospect

India has great potential to make the solar industry bright and promising. Projected solar capacity growth, anticipated technological advancements and global collaborations are poised to transform India into a solar energy powerhouse.

In a nutshell, by working together, governments and industries can unlock the full potential of solar energy. Through continued collaboration, the country can also create a future powered by clean, sustainable, and affordable solar energy, ensuring a brighter future for generations to come. As a result, the journey is not towards sustainable energy but towards a vibrant and resilient economy illuminated by the sun's rays.

(The author is Group Executive Director, Hartek Group; Views are personal)

7. India Calls for Norms to Fix Default Maximum Pesticides Residue Limit

ET, 27 Apr. 2024

India has made a strong pitch at the World Trade Organization (WTO) for the formulation of guidelines to determine default maximum residue limits (MRL) in the absence of international standards.

The traces pesticides leave in treated products are called residues and MRL is the highest level of a pesticide residue that is legally tolerated in food or feed.

In a submission to the WTO last week, India said that stringent MRLs can be trade-restrictive and act as non-tariff barriers to international trade, disproportionately affecting exporters from developing countries.

At present there are no uniform international standards.

The proposal comes amid certain exports by India’s two major spice brands – MDH and Everest – getting rejected by Singapore and Hong Kong. India’s exports of basmati rice, chillies, tea and sesame seeds are subject to MRLs which have been touted as unreasonable. “These trends are trade-restrictive… and act as barriers to international trade, particularly impacting exporters from developing countries,” India said. Frequent changes in MRL requirements exacerbate the negative impacts on trade, especially when the transition period is not sufficient for compliance by developing countries, it said.

The guidelines should be developed in collaboration with the Food and Agriculture Organization and Codex, and countries shouldn’t rely on a “hazard-based approach”, according to the submission.

India also suggested that countries inform the Sanitary and Phytosanitary Measures (SPS) Committee of the WTO periodically about the measures they take to collect the additional information after implementation of a provisional MRL. “Also, any restriction on approval or non-renewal of any active substances should be based on risk-assessment and rely on scientific evidence,” India said.

For smoother trade, it said, the SPS Committee should develop a mechanism for monitoring the harmonisation of the standards to protect human, animal and plant life and health, called SPS measures, with the available Codex texts.

Citing a “concerning trend” in the movement towards stringent MRL thresholds for pesticides, India said that these might hinder agricultural trade. “Further, the unilateral measures based on considerations other than food safety disregard the local circumstances of agricultural practices,” India said.

India also cautioned that expanding the scope of MRL regulations without comprehensive scientific assessments raises concerns about product coverage and safety.

8. FMCG, Auto Cos Break the Jinx as Rural Growth Rises Above Urban

ET, 8 May,2024

Rural demand outpaced urban markets for fast moving consumer goods for the first time in five quarters in the January-March 2024, while car companies reported higher rural sales compared to urban, signalling a broad-based turnaround after 15 months of sluggish demand in India’s hinterlands.

Agencies

Consumer intelligence firm NielsenIQ (NIQ) said in its FMCG quarter sector update on Tuesday that sales in rural markets, crucial for the overall health of the FMCG sector, grew at 7.6%, aided by personal and home care categories. This compares to 5.8% growth in previous quarter. Urban sales declined sequentially to 5.7% in the March quarter, slower than the 6.9% increase in the preceding October-December 2023 quarter.

“The slowdown in urban markets is due to flat value growth as companies cut prices by up to 10-15% over the last three quarters. While there is good volume growth due to rationalised prices, value growth is flat,” said Mayank Shah, vice president, Parle Products, which derives close to half its sales from rural markets.

In contrast, Shah said rural demand grew riding on a robust rabi crop, bumper wheat crop and government measures like increase in MSP and higher spending on MNREGA, adding that he expected rural demand to remain robust through the year. Forecasts of an above-normal monsoon by IMD and Skymet are expected to further aid rural demand for both consumer and auto sectors, executives said.

“The worst is behind for the FMCG sector and gradual recovery will continue due strong monsoon this year. We expect local players to lose market share due to a base effect playing out,” said Abneesh Roy, executive director at Nuvama Institutional Equities.

Maruti Suzuki saw record sales in rural markets that increased 11% last fiscal, outpacing growth of 7% in urban centres. The company sold 787,000 vehicles in rural areas in FY24. Two-wheeler sales last quarter also went up by 24.9% to 4.5 million units. Rural markets account for 55% of all two-wheelers sold in the country. “There has been a lot of investments in infrastructure development in rural areas which is supporting car sales. Income levels of rural consumers are on a rise. The gap in the ratio of income of consumers in rural markets vs urban markets is closing and is expected to come down to 1.4X (if urban buyers earn ₹140 rural buyers earn ₹100) over the next couple of years, from the current 1.8X, further boosting consumption in these areas going ahead,” a senior industry executive told ET. Rural sales at Hyundai grew 9% in the first 4 months of this year, compared to sales increase of 1% in urban areas. At the Korean auto major, rural markets have chipped in 19.8% to overall volumes.

9. Indian ag-tech start-up Superplum receives US$15m in series A funding

ASIAFRUIT, Bree Caggiati, 7 May 2024

Hellman & Friedman senior advisor joins as Superplum chairman

Indian ag-tech start-up Superplum has announced the completion of its US$15m Series A financing. The funds will enable Superplum to continue to build out its infrastructure and assist its efforts to transform produce supply chains in India.

Superplum offers premium produce including mangoes

The round was led by the company’s incoming chairman, Erik Ragatz, former partner and current senior advisor of the global private equity firm Hellman & Friedman. Ragatz joins a strong group of current investors including Mark Siegel, Dan Rose, Steve Jurvetson, Rick Kimball, Binny Bansal, and Kabir Misra.

“Superplum is a hugely disruptive play in the existing produce markets in India and has the opportunity to create an incredibly valuable enterprise,” Ragatz said.

“This is also one of those great stories, where positive business success should bring a positive impact to the company’s stakeholders – changing the lives of farmers through increased pay and better terms, reducing food waste across the supply chain, and delivering healthier options to consumers.”

Superplum has built out a direct-from-farm produce supply chain, using proprietary technology and cold-chain infrastructure to improve how produce is grown and brought to market in India. It offers premium produce including mangoes, lychees, apples, grapes, cherries, and plums among a growing list of products.

In 2023, the start-up launched a traceability system to connect consumers with farmers and allows users to view pesticide reports for each batch and see the fruit’s journey from farm to table.

Superplum’s offering is designed to help address some of Indian agriculture’s endemic structural issues. The company has said its vertically integrated cold chain technology extends the shelf-life and enhances the quality of fruit which in turn expands produce availability across the country, reduces food waste and ultimately improves farmer incomes. The company works with farmers across 22 states in India and runs modern sourcing and supply chains for 25 fruits across the year.

Shobhit Gupta, the company’s cofounder and chief executive said that while India has made huge strides in different domains, fresh produce remains lacking in technology and investments.

“Building from the ground up, we had the opportunity to reimagine the whole supply chain and get superior, safer produce to consumers – and they seem to be loving it,” he said. “We have spent the time, over the last few years to build outsourcing and supply chains for traditionally tough-to-handle fruits such as mangoes, lychees, cherries, and guavas and we get the most appreciative feedback on them. Consumers can really tell the difference. There’s no reason that Indian consumers should find it difficult to get their hands on high-quality domestic produce.”

10. Cultivating a sustainable future: Election 2024's mandate for agri-tech and farmer- -centric policies

ET Gov. 10 May, 2024

By embracing technologies such as soil testing, precision agriculture, and digital farming, and fostering practices like regenerative agriculture, India can pave the way towards a more prosperous and sustainable future for its farmers and the nation as a whole.

Election 2024 presents a pivotal opportunity to prioritize Agri-Tech and farmer-centric policies that promote sustainable growth and resilience in the agricultural sector.

As India gears up for Election 2024, the agricultural sector stands at a critical juncture, demanding a strategic shift towards Agri-Tech and farmer-centric policies. With the pressing need for sustainable growth, it's imperative to embrace innovative solutions that prioritize the well-being of farmers and the environment alike.

At the forefront of this transformation is the integration of advanced technologies aimed at revolutionizing farming practices. Soil testing emerges as a cornerstone, providing invaluable insights into soil health and nutrient levels. By leveraging precise data, farmers can tailor their fertilization strategies, optimizing yields while minimizing environmental impact.

Simultaneously, plant disease diagnosis empowers farmers to detect and mitigate crop diseases early on, safeguarding harvests and livelihoods. This proactive approach not only enhances crop resilience but also reduces the reliance on chemical pesticides, promoting ecological balance.

The advent of Precision Agriculture and Precision Farming marks a paradigm shift in farming methodologies. Through the utilization of GPS, sensors, and automation, farmers can precisely manage inputs such as water, fertilizers, and pesticides. This targeted approach not only enhances resource efficiency but also boosts productivity, ensuring sustainable agricultural practices for future generations.

Digital Farming platforms play a pivotal role in this agricultural revolution, providing farmers with real-time access to vital information and actionable insights. From weather forecasts to market trends, these platforms empower farmers to make informed decisions, mitigating risks and maximizing profits.

Furthermore, Agricultural Remote Sensing technologies offer a bird's eye view of farmlands, enabling the monitoring of crop health and environmental factors from afar. By harnessing satellite imagery and drones, farmers can identify areas of concern and implement timely interventions, fostering resilience in the face of climate change.

Central to this vision of sustainability is the Soil Health Card initiative, which empowers farmers with personalized recommendations based on soil analysis. By promoting soil health and fertility, this initiative lays the foundation for resilient and productive agricultural systems.

In parallel, the promotion of regenerative agriculture practices holds immense promise in enhancing soil health and mitigating climate change. By prioritizing practices such as cover cropping, crop rotation, and reduced tillage, farmers can build organic matter in the soil, sequestering carbon and enhancing resilience to extreme weather events.

Moreover, incentivizing carbon credits for adopting regenerative agriculture practices not only provides financial benefits to farmers but also contributes to national climate goals. By recognizing the role of agriculture in mitigating greenhouse gas emissions, policymakers can harness the sector's potential as a solution to climate change.

In conclusion, Election 2024 presents a pivotal opportunity to prioritize Agri-Tech and farmer-centric policies that promote sustainable growth and resilience in the agricultural sector.

(The author is Founder & CEO, Satyukt Analytics; Views are personal

- Industry and Manufacture

11. Murugappa Group and the Tatas could make iPhone camera modules in India. Here’s why it is a big deal.

ET, 18 Apr. 2024

Manufacturing camera modules is complicated and involves multiple specialised components. Apple's move to possibly look at onboarding two Indian corporates could be a catalyst for the country’s high-end manufacturing ambitions.

Shooting a Reel of you grooving to the latest chartbuster? Capturing a goofy moment of your pet? Sending your family a picture of the food you feasted on? Filming a prank on your friends? There is one device – equipped with powerful cameras - to shoot them all.

One doesn't think about it while taking a selfie, but each camera module is a symphony of highly sophisticated and specialised components.

That brings us to the rather big news break from The Economic Times – that Apple is in advanced discussions with the Murugappa Group and Tata group’s Titan Company to assemble — and, possibly, manufacture — sub-components for its iPhone camera modules.

Why is this such a big deal? ET explains...

What are the components of a camera module?

The main components are the lens, infrared filter, image sensor, digital signal processing and soft board or PCB. The lens structure is composed of several lenses, usually made of plastic or glass. The more lenses, the higher the cost. Generally, glass lenses are more expensive than plastic lenses. Image quality tends to be better with glass lenses. Another critical determinant of image quality would be the image sensor. Sensors and lenses must be assembled in a dust-free environment to prevent presence of any particles in the module, which can result in black dots on images.

How much of the camera modules value chain can be localised?

Many of the sub-components of a camera module are not manufactured in India. Martin Yang of investment bank Oppenheimer had told ET earlier that while it was directionally a logical step for Apple to look at local suppliers, a lot would depend on which components they were looking at. He said that an example of something that would be hard to replace (from the current supply chain) would be the camera lens.

"They would require custom built tools designed by Apple and a very precise calibration process. Components like these are highly technical. There are easier components that they could look at finding a replacement for, like the capacitor wherein the core components would be easier to source," he said.

Further, he said that India will take years to develop parts like the camera lens, image sensors and actuators, while adding that it was not even realistic to expect that everything can be done in-house. Yang said that even China has not been able to do that as Apple has a heavy dependency on Korean, US and Japanese suppliers.

"The two components for which Apple will either have to continue importing or get them (other suppliers) to set up a unit locally in India are for image sensor chips which are within a camera module which form the largest, most costly component of a smartphone as well as the display," he said.

Who are the suppliers that Apple is dependent on for sensors in the camera module?

Yang said that for the image sensors, Apple depends on three players largely - Sony from Japan, Samsung from Korea, and Omnivision from China. These image sensors are specialised components, and it is very costly for new players to enter this market.

The expert quoted earlier said that the image sensor, which costs the most in a module, comes from the likes of Sony and is manufactured at matured foundry nodes in Taiwan or elsewhere. "These image sensor companies don’t have motivation to come to India due to lack of fabs and good fabs and established module assembling ecosystem. Further sub-components include lenses coming from the likes of Largan or Sunny and cover glass from the likes of Corning," he added.

How can Murugappa Group and Titan Company address the localisation challenge?

India Cellular and Electronics Association (ICEA) chairman Pankaj Mohindroo had told ET earlier that the capability required is somewhat like that for OSAT (outsourced semiconductor assembly and test). “While there are extremely specialised aspects in the camera module as well, there are certain aspects that Indian companies have the capacity to produce for,” he had said.

Another expert ET talked to agreed that the best way for Indian companies to approach this was to begin with module assembly rather than diving head-first into manufacturing as that was unrealistic.

"Module assembly is a good foundation to attract different sub-assembly players to manufacture those in India and build the complete local value chain from image sensor to lenses to entire camera module," he said. There are very few camera module assembly players in India. Murugappa Group, with their acquisition of Moshine Electronics, a camera module player, could have an advantage. Their semiconductor fabrication play could also add strength. The expert added that though initially this could be an assembly play, in the future they could develop into an end-to-end partner in Apple’s India value chain.

Same goes for the Tata group, which can go from fab to module assembly for camera modules and sub-components.

12. Tata Electronics Building Hi-tech Machines to Make iPhone Casin

ET, 26 Apr. 2024

After becoming a significant player assembling enclosures for Apple iPhones in the country, Tata Electronics is now working to internally develop “very sophisticated” and complex high-precision machines used to produce the casing of these iPhone, sources told ET.

The company has tied up with two Indian manufacturers to develop capabilities for it and plans to also export these complex machines in the future. So far, the Tatas imported these from China.

The machinery can be used in the production lines of contract manufacturers who work for global companies such as Apple. The move is expected to provide crucial impetus to the government’s $300 billion electronics export by 2025 target.

“The Tata Group is testing these machines in a staged manner at their Hosur facility,” a person aware of the developments told ET. “Part of the objective is to grow more of its local capability because the company is not just looking to build enclosures, it wants to develop the ecosystem in the country. These machines are just one of the many inputs that go into making a component or an enclosure that the company is looking at to reduce its exclusive dependence on certain parts.”

Experts ET spoke to said this could be a huge boost to the Indian manufacturing story as well.

“Everybody wants casings,” Ajai Chowdhry, co-founder of HCL, told ET. “If Tata Group is able to do import substitution and they're able to make these machines in India, it will create an industry because so many people want casings. Anybody who wants to make a phone or a tablet in India needs casings and if they're able to adhere to Apple's stringent standards, it would be a high-quality machine in itself.”

Indian manufacturers are at different levels of capability and maturity to execute the plan, the source quoted earlier said.

This is part of the company’s ‘global plan’ to reduce dependence on certain low tech parts before moving on to more complex parts in a bid to diversify and de-risk from global supply chain shocks while building the manufacturing ecosystem in the country.

Queries sent to the Tata Group remained unanswered as of press time Thursday.

13. India E-commerce: India emerges global e-commerce powerhouse, projected to surpass USD 800 bn digital economy by 2030

ET Gov. 29 Apr. 2024, ANI

The future scenario paints a picture of India leading the charge in online shopping, with an estimated 500 million shoppers by 2030.

The internet penetration has witnessed significant growth, with 52 per cent of the Indian population, approximately 759 million people, accessing the internet in 2022.

The e-commerce market in India is expected to skyrocket to USD 325 billion by the same year, with the digital economy reaching a staggering USD 800 billion.

According to Invest India, with 881 million users, India has the 2nd largest Internet user-base globally, and set to become the 3rd largest online retail market by 2030.

India is on the trajectory to become a global e-commerce powerhouse by 2030, fueled by a burgeoning digital economy and a rapidly expanding internet user base.

The future scenario paints a picture of India leading the charge in online shopping, with an estimated 500 million shoppers by 2030.

Currently, India's e-commerce sector stands at a market size of USD 70 billion, constituting around 7 per cent of the total retail market in the country.

The internet penetration has witnessed significant growth, with 52 per cent of the Indian population, approximately 759 million people, accessing the internet in 2022.

Several factors contribute to India's e-commerce boom.

One of the primary drivers is the increasing internet penetration, with around 87 per cent of Indian households expected to have internet connections by 2025.

The duration of internet access through mobiles has seen a 21 per cent rise compared to 2019.

The number of online shoppers in India is projected to increase significantly, with a compound annual growth rate (CAGR) of 22 per cent to 88 million in rural India and 15 per cent to 263 million across urban India between 2019 and 2026.

India's affordability in data prices also plays a pivotal role, with one gigabyte of data costing approximately USD 0.17 (Rs 13.5), driving the majority of the population online.

The rise in smartphone users, projected to reach 1.18 billion by 2026, coupled with an increase in average data consumption per user, further propels the digital economy.

Mobile data traffic has tripled from 2018 to 2023, showcasing the increasing reliance on digital platforms for various needs.

Unified Payments Interface (UPI) has emerged as a significant player in digital payments, accounting for USD 1.5 trillion transactions in 2022. By 2026, 81 per cent of India's population is expected to have access to smartphones.

The availability of local language and mobile-first content has seen a surge, with approximately 73 per cent of India's internet subscribers using Indian languages. This has led to an estimated regional language base of 540 million, offering a market size of USD 53 billion.

Digital infrastructure such as UPI, eKYC, and Aadhaar has reduced the time taken to onboard consumers by 80 per cent, further streamlining the digital experience.

A significant shift is observed towards rural-led value e-commerce, with over 60 per cent of demand expected to be driven by tier 2-4 towns and rural India by 2026.

Government initiatives like the National Logistics Policy aim to smoothen deliveries to hinterlands, making logistics efficient and cost-effective.

In hyperlocal mobility, India's quick commerce market is expected to reach a market size of USD 5.5 billion by 2025. Companies like Swiggy and Zomato are leading the market, introducing new microsegments such as car-pooling and e-scooter rentals.

In health tech, preventive healthcare is expected to grow twofold by 2025, creating significant job opportunities.

Social commerce is expected to reach a market size of USD 70 billion by 2030, with small video applications gaining wide appeal.

Key mergers and acquisitions in the e-commerce sector have been notable, with companies like Zomato and PhonePe making strategic moves to strengthen their positions.

Government initiatives like Jan Dhan Yojana, BharatNet Project, and the introduction of Goods & Service Tax (GST) have played a crucial role in shaping India's digital economy.

14. Indian Pharma Set for Major Transformation

ET, 30 April, 2024

India’s pharmaceutical industry is set for a significant transformation from being a producer of generic drugs to high-value innovative products. Dilip Shanghvi, MD of Sun Pharma, said the change will be visible in the next two to three years as more companies invest in science and advanced technologies.

At an annual meeting of the USA-India Chamber of Commerce in Boston, Shanghvi told a gathering of leading multinational drug makers about the “clear positive improvements” that are taking place in India. Sun Pharma itself has built a pipeline of over 10 specialty and innovative drugs in the US. It’s done this through acquisitions of late-stage drugs in clinical trials and building commercial teams around them. For Indian companies that have grown by making copies of innovative drugs, gaining presence in innovative drugs is considered tough as this segment is dominated by giant corporations such as Pfizer, Novartis, Roche, Eli Lilly and Bristol Myers Squibb.

“I visualise a situation when one or two Indian companies bring new products, and we will see a positive sign in innovation in India,” Shanghvi said. It took India 10 to 15 years to become powerful in the generics business. Now, more than 50% of the units (volume of drugs) in the US or in other parts of the world, are produced in India. “We were the early movers and became profitable,” he said. Shanghvi’s Sun Pharma clocked revenue of $5.64 billion (₹47,065 crore, according to Monday's exchange rate) in 2023 with over 30% of this coming from the US. Currently, Sun is ranked 23rd in the list of most valuable pharmaceutical companies in the world with a market capitalisation of $43 billion (₹3.58 lakh crore), ahead of leading drug makers such as Bayer, Takeda, Biogen and Baxter.

But to get into the big league, the mindset of Indian drug makers needs to change, Shanghvi said.

“The mindset in India is that if Pfizer can do something, it will be difficult for us to do but if another Indian company can do it, we can also do it,” he said, adding that he sees a “positive cascade” as companies start to see they can make money from innovation. Among other Indian drug makers that have invested in innovative research are Dr Reddy’s, Glenmark, Lupin, Biocon and Zydus Lifesciences.

But in many instances, the journey has been wobbly with midway-failures and abandoned projects. Also, to make it more daunting, Chinese counterparts in the pharma and biotech industry have leapfrogged into advanced science such as cell and gene therapies.

“This is clearly a long-term investment and takes time to produce return against high risks or potential failures,” he said. “But once a product is in the market and it becomes successful, it is justified for all the efforts. I see all this happening in the next two to three years.”

Hari Bhartia, founder of the Jubilant Bhartia group, echoed Shanghvi’s views. There is a rise in innovation, he said, adding that early-stage biotech companies are emerging from India with support and funding from the government. “In small molecules (chemistry-based drugs), we have capacities but in large molecules (biotech drugs), we are still building,” Bhartia said. “But what China is doing, for India it will take some time — may be 3 to 5 years.” The global pharmaceutical community seems to be in alignment with expected changes.

Christopher Viehbacher, CEO of Biogen, a biotech drug maker, said the US pharmaceutical industry had always needed China as it was cheaper, faster and even better in a few core tech. But now, with global equations changing, there are possible benefits for India, he noted. He cited high quality of work and talent as India’s key attributes.

As populations age and the number of people above 65 swells in the OECD countries over the next decade, government spending on healthcare in those countries will see a sharp increase, Viehbacher said.

(The writer was in Boston at the invitation of the USA-India Chamber of Commerce.)

15. Tipplers Toast Local Labels as Big Brands Lose way in Policy Maze

ET, 8 May, 2024

Changes in state liquor policies are creating a never-before-seen scarcity of popular brands such as Royal Stag, Budweiser and Old Monk, worsened by the code of conduct for the general election, causing supply chain disruption, and delays in label registrations and licence renewals.

Liquor stores in Delhi are pushing unheard whisky brands like ‘Party Special’, ‘Russian Nights’ and ‘O Darling’ whose sales totalled 55,000 cases, 30,000 cases and 20,000 cases, respectively in April. Same is the case in Andhra Pradesh where whisky brands Royal Palace sold 2 million cases while Daaru House and Old Timer Blue sold 1.2 million cases each last fiscal. Even in Telangana, mainstream brands are limiting supplies due to payment delays, leading to local brands.

“Though the model code of conduct is meant only for new policy announcements, fact is, in some states it’s being given as a reason to stall or delay routine approval process. Licence approvals are taking inordinately long in states like Delhi, routine production shift approvals are on hold in Telangana, payments cycles from corporations are getting delayed and so on,” said Vinod Giri, director general of industry body Confederation of Indian Alcoholic Beverage Companies.

“We understand some of it could be due to staff shortage due to election duty, but that cannot hold good for places where elections are over or are weeks away. Some of it seems to be bureaucratic apathy which, coming on top of election related disruptions, is affecting the industry supply chains,” said Giri.

In November 2021, Delhi government decided to exit liquor vending business and handed it over to private companies. However, a year later, it reverted to the old policy. Pernod Ricard, the world's second biggest spirits firm, and the largest distiller in Delhi was restricted from selling in the state as authorities didn’t renew its licence, creating a void in the whisky segment, largely for mass-premium brands.

“It is availability over choice for consumers now. Also, these smaller unknown brands offer more than double our margins which makes it profitable for retailers to push them. While there is a clear mismatch between our supply and demand in these states, we are entirely dependent on excise officials to curb such malpractices at the retail or wholesale level,” said a senior official at a large liquor producer. “In some states, we are not stocking up voluntarily because if there is a state government change, it could lead to payment disputes or delays.”

For the alcobev sector, this isn't new. For years, states like Tamil Nadu and Kerala, which control liquor retailing, have been pushing local obscure brands, forcing top brands to either curtail supply or shift focus to other states. The difference this time, however, is that these states where liquor is controlled by the government — account for over a fifth of India's total alcobev industry.

The March-July period is a peak season for breweries, accounting for 40-45% of annual beer sales. Telangana is the biggest beer consumer while Delhi is crucial for brand building, especially at the bars and pubs.

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

16. India preferred digital services destination globally in GenAI era: Report

ET Gov. 16 Apr. 2024, IANS

About 45 per cent of high-tech, travel and transportation companies, alongside 41-43 per cent of telecom, discrete manufacturing, and construction firms, opted to “nearshore” to India in 2023, underscoring the country's growing appeal as a global hub for digital services outsourcing.

Generative AI is poised to receive heightened investment in 2024.

Amid the global economic headwinds, India continues to be the preferred outsourcing destination for businesses aiming to build and expand their digital services portfolio, a new report showed on Monday.

Traditional sectors such as energy and utilities, along with construction and engineering, demonstrated substantial growth in their digital talent base, reflecting a broad-based commitment across industries to deepen their digital capabilities.

According to the report, GenAI emerged as a prominent technology last year, attracting targeted investment from nearly 70 per cent of global enterprises.

This led to sectors including BFSI, high-tech, discrete manufacturing, telecom, media and entertainment, as well as energy, utilities, and alternatives significantly expanding their digital services contracts.

“A strategic framework for businesses seeking to hasten digital adoption in an era where artificial intelligence and skills are paramount,” said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom.

Generative AI is poised to receive heightened investment in 2024, with 73 per cent of firms that allocated budgets to Gen AI in 2023 deeming it essential to increase spending, especially in talent development.

According to the report, 71 per cent of enterprises spent over 20 per cent of their tech spend on digital last year.

Moreover, nearly 90 per cent of firms plan to boost investments in key digital technology areas this year, including AI/machine learning (AI/ML), big data analytics, cloud computing, cybersecurity and intelligent automation.

“The digital landscape is undergoing a profound transformation, and enterprises are at the forefront of this change. The commitment to digital maturity is no longer just about streamlining costs but about boldly shaping the future,” said Akshay Khanna, Avasant Managing Partner.

17. Servicenow Genai: Infosys, ServiceNow strengthen strategic collaboration to transform customer experiences with GenAI-powered solutions

ET Gov. 9 May, 2024

The announcement was made at ServiceNow’s annual customer and partner event Knowledge 2024 in Los Vegas.

Knowledge 2024-Infosys, a global leader in nextgeneration digital services and consulting, and ServiceNow, the AI platform for business transformation, on Tuesday announced a strengthened collaboration to transform customer experiences with generative AIpowered industry solutions, at ServiceNow’s annual customer and partner event Knowledge 2024.

The collaboration aims to increase productivity, enhance efficiency, and improve user experience for organizations by combining ServiceNow’s Now Assist generative AI capabilities and Infosys Cobalt, a set of services, solutions, and platforms designed to accelerate cloudpowered enterprise transformation, according to a company press release. As part of this broader AIfirst, industryfirst strategy, Infosys will also double its investment in training by certifying more than 3,500 employees with ServiceNow GenAI skills, ServiceNow said.

“The combination of ServiceNow GenAI capabilities with Infosys’ industry expertise is a prime example of how our partners are integral to driving digital transformation forward for more organizations,” said Erica Volini, senior vice president, global partnerships and channels at ServiceNow. “Our longstanding collaboration with Infosys demonstrates the potential for our ecosystem to yield real, impactful results for customers. We are helping shape the future of GenAI’s impact on enterprise productivity, with skills trainingGenAI.”

“Infosys and ServiceNow are deeply committed to delivering exceptional customer experience for our clients. This collaboration further strengthens our relationship by bringing together ServiceNow’s Now Assist GenAI solutions with Infosys Cobalt, in addition to our expertise in digital transformation and generative AI capabilities,” said Anant Adya, executive vice president and service offering head at Infosys. “Together, we have developed nextgeneration industry solutions that address tough challenges across sectors. These solutions leverage generative AI to automate tasks, personalize experiences, and unlock new levels of efficiency and innovation for our clients.”

In collaboration with ServiceNow, Infosys will develop new industry applications into the Infosys Enterprise Service Management (ESM) Café, the AIpowered plugandplay solution which is already helping ServiceNow customers accelerate time to value. Infosys is also investing in the creation of a Pro Plus BOT factory, which can offer more than 100,000 Now Assistpowered chatbots so customers can realize value in their AI journey.

Through this expanded collaboration, ServiceNow and Infosys will address critical business process challenges for enterprises across telecom, financial services, manufacturing, and retail. The new offerings will aim to deliver significant benefits to customers, including up to 20% improvement in operational efficiency, 5x faster increase in response time, and 30% reduction in implementation timelines. At the same time, the applications will deliver insights on large transformation engagements using GenAI. The collaboration is currently enabling customers such as Carrier, a world leader in hightechnology heating, airconditioning, and refrigeration solutions, to address key business problems, including experience, underutilized AIbased platform capabilities, and isolated processes.

Through more than 10 years of collaboration, Infosys and ServiceNow have made substantial investments in R&D, infrastructure, and talent development resulting in improved product capabilities and market expansion.

18. UPI payments see surge in India, leading people to overspending too: Experts

ET Gov. 17, May, 2024

Last year, the UPI transactions increased by almost 60 per cent to reach a record 11,768 crore.

As India's digital and less-cash journey gains steam, more and more people are not only purchasing their daily essentials via unified payments interface (UPI) mode of digital transactions but also costly home appliances, high-end gadgets and designer apparels, among other things.

The seamless digital journey via the UPI mode has also resulted in people overspending on stuff they actually may not need at times, experts said on Saturday.

The purchasing trend via UPI/QR code is due to the fact that digital transactions now take a jiffy to complete the purchase journey via smartphones.

According to a recent survey by IIIT Delhi, nearly 74 per cent of people in the country are ‘overspending’ as a result of using UPI and other digital payment methods.

"The convenience and ease of digital transactions through UPI, in comparison to cash, may indeed lead to lower awareness of spending, as transactions are seamless and reduce the tangible feel of money leaving one's possession," Prabhu Ram, Head, Industry Intelligence Group at market intelligence firm CMR, told IANS.

Latest data from the National Payments Corporation of India (NPCI) revealed that the number of Unified Payments Interface (UPI) transactions reached 1,330 crore in April. On a year-on-year basis, the UPI transaction count has increased by 50 per cent.

Last year, the UPI transactions increased by almost 60 per cent to reach a record 11,768 crore.

Ramesh Narasimhan, Chief Executive Officer-India, Worldline, said that UPI maintains its position as the uncontested frontrunner, buoyed by substantial expansion in mobile transactions.

"This trend underscores users' growing confidence and familiarity with smartphone-based payment methods," Narasimhan added.

The average ticket size (ATS) of UPI transactions has also declined by 8 per cent from Rs 1,648 to Rs 1,515.

According to experts, consumer spending in India is soaring, with people splurging on cars, smartphones, TVs and other items, boosting the country's economic growth.

However, the trend has also seen people overspending on certain high-priced items, thanks to UPI.

A recent report by Nielsen Media India, on behalf of Amazon India, showed that digital payment methods are on the rise in the country, with 42 per cent of consumers saying they will choose UPI for online festive shopping.

19. IndiGo shows It’s In for Long Haul, Orders 30 A350s

ET, 26 April, 2024

India’s largest airline IndiGo Thursday placed an order for 30 Airbus A350-900 aircraft, marking its first order for wide-body planes as it looks to expand from offering only short-haul flights to the lucrative market for long-haul services.

The budget carrier — one of the largest customers for Airbus globally — has purchase rights for another 70 planes. Delivery of the Airbus planes will begin from 2027.

At list price, the order is worth $12 billion, but airlines tend to enjoy heavy discounts on bulk orders.

“Today’s historic moment marks a new chapter for IndiGo and will further shape the future of the airline and for Indian aviation at the same time. 30 Airbus A350-900 aircraft will allow IndiGo to embark on its next phase of becoming one of the leading global aviation players,” Pieter Elbers, chief executive of IndiGo, said in a statement.

The airline last year placed an order for 500 A320 aircraft, the biggest purchase agreement in the history of commercial aviation.

The fresh A350-900 order pitches IndiGo in direct competition with Air India which has 70 wide-bodied planes on order from both Airbus and Boeing, and Gulf carriers like Emirates and Qatar Airways. IndiGo currently operates flights to more than 30 international destinations including Dubai, Singapore and Bangkok using the A320 family of narrow-body planes.

The A350-900 aircraft can fly for 16-17 hours, allowing IndiGo to tap routes to North America -- home to millions of non-resident Indians.

IndiGo didn’t say if the wide-body planes will have two-class configuration -- including business class. The airline has, however, already started working to change from a single class, no-frills carrier to having a twin class on its A320 aircraft for short-haul international routes. The new cabin will have roomier seats and perks like hot food and a loyalty programme with an aim to court more business flyers.

The no-frills model to pack more passengers into dense cabins and charging extra for food, priority boarding, and seat allocation has served IndiGo well, helping it grab about 60% share of the domestic market, and stay profitable where airlines struggle to increase fares. Since 2012, three Indian carriers have gone bankrupt failing to grow revenues in line with rising costs.

But IndiGo’s top management is now convinced that with a firm leadership position in the domestic market, the airline should leverage this to become a leader in the international market.

Elbers, who joined the airline in 2021 from Air France-KLM, has initiated a rapid foray into international routes. IndiGo has also named Gregg Saretsky, who led Canadian airline WestJet’s transformation from a low cost to a hybrid airline, as one of its directors.

“This is the right time for Indian carriers to seek a larger share of the long and ultra-long-haul markets. This will bring greater competition to key international markets and stimulate traffic,” aviation consultancy firm CAPA said.

Indian carriers tend to generate 80% of their passengers from India, and 20% from overseas, which needs to be rebalanced, it said, adding it expects IndiGo to become a key player in the long and ultra-long-haul segments.

IndiGo’s foray into the long-haul market comes after years of deliberation starting 2018. Other than the A350-900, the airline had examined the A330 aircraft from Airbus and 787 Dreamliner from Boeing.

People familiar with the matter said IndiGo opted for the A350 as the aircraft has commonality with its existing fleet of Airbus A320 and A321 planes.

A common design of the cockpit will allow the airline to upgrade its existing pool of pilots with short training periods and get necessary qualification to fly both aircraft types at the same time. The same holds true for engineers as IndiGo can have their mechanics undergo a shortened training period to become eligible to work on the A350.

IndiGo’s new aircraft will be powered by the Trent XWB engine of British aerospace engine maker Rolls-Royce Plc. “India is an important market for Rolls-Royce. The future promises to be exciting, with significant infrastructure developments and further growth expected in air travel,” said Ewen McDonald, chief customer officer, Rolls-Royce.

20. TCS has One of World’s Largest AI-ready Workforces, says CEO

ET, 17 Apr. 2024

Bengaluru: Tata Consultancy Services has built one of the largest and most artificial-intelligence-ready workforces in the world, chief executive officer K Krithivasan said in an email to employees at the start of the new fiscal year.

In the email, a copy of which ET has seen, Krithivasan thanked employees for their efforts in learning and skilling themselves on AI. “TCS is currently working over 200 engagements in GenAI with our clients and foresees a promising pipeline of future work across all industries,” said Krithivasan who will complete a year at the helm of TCS in June.

Most TCS employees returning to office in the last quarter also led to greater learning, he said. He also wrote about chief operating officer NG Subramaniam, who is retiring next month, and thanked him for his contribution.

TCSers have clocked 51 million learning hours and acquired 5 million competencies in FY24. Its generative AI pipeline has doubled to $900 million, the IT bellwether said during its earnings announcement. TCS reported last week that its net profit grew 9.1% on-year to ₹12,434 crore in the final quarter of 2023- 24, beating expectations. The strong performance came on the back of increased efficiency, productivity gains and lower subcontracting costs. Revenue increased 3.5% to ₹61,237 crore in the fourth quarter of a year marked by plunging demand for technology services globally due to macroeconomic uncertainty and geopolitical strife.

The Mumbai-headquartered firm said it had signed new deals totalling $13.2 billion in the quarter — the highest ever for the company even as it signalled a cautious turnaround for the industry saying that the pain may be bottoming out and FY25 will be better than FY24.

TCS has, however, said that it is hard to pin-point the quarter in which growth will return.

Talking about the GenAI pipeline in an interview with ET after the results announcement, Krithivasan said that “the pipeline itself has doubled over the last quarter and has been shaping up quite well. We are training a large set of our workforce, coming up with our own new tools and platforms to help our customers, new use cases on how customers can use the technology.”

On being asked if in the future revenue headcount could be decoupled from growth with the greater focus on Gen AI, he said: “I don’t think there'll be a complete decoupling of effort and revenue. But you may not see immediate linearity every time. Sometimes we may be increasing the headcount in one quarter and the revenue can come up in some other quarters. So, if you want to correlate the headcount and revenue on every quarter, that could become more and more difficult, but at the same time, there won't be complete decoupling.”

While lauding employees’ efforts in learning and skilling in AI and Gen AI, Krithivasan said in his email on Monday: “This is another tribute to the culture of engineering we have at TCS, and I am eager to see it grow from strength to strength.”

India and the World

21. Despite persistent global challenges, overall exports are estimated to surpass last year’s highest record.

Press Information Bureau, Apr. 16, 2024

Despite facing persistent global challenges, India's overall exports, encompassing both merchandise and services, are expected to surpass the previous year's peak, reaching an estimated US$ 776.68 billion in the fiscal year 2024, slightly edging out the US$ 776.40 billion recorded in the previous fiscal year. Notably, March 2024 marked the highest monthly merchandise exports of the current fiscal year, totalling US$ 41.68 billion. Within the realm of merchandise exports, sectors include Electronic Goods, Drugs & Pharmaceuticals, Engineering Goods, Iron Ore, and Cotton Yarn/Fabs. /made-ups, Handloom Products, and Ceramic products & glassware were among the main growth drivers.

Furthermore, agricultural commodity exports, including Tobacco, Fruits and Vegetables, Meat, dairy & poultry products, Spices, Cereal preparations & miscellaneous processed items, Oil seeds, and Oil Meals, showcased positive growth in the fiscal year 2024. Despite challenges, the overall trade deficit is estimated to have significantly improved by 35.77%, decreasing from US$ 121.62 billion in FY23 to US$ 78.12 billion in FY24. Specifically, the merchandise trade deficit saw a notable decline of 9.33%, at US$ 240.17 billion in the current fiscal year, compared to US$ 264.90 billion in the previous fiscal year.

In March 2024, India's overall exports (Merchandise and Services combined) totalled US$ 70.21 billion, representing a slight decrease of 3.01% compared to March 2023, while overall imports amounted to US$ 73.12 billion, exhibiting a decline of 6.11% over the same period. These figures underscore the resilience of India's export sector amidst global challenges and highlight the ongoing efforts to strengthen trade dynamics and balance.

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

22. The Imitation Game

ET, 8 May, 2024

The business of fake goods is a thriving billion-dollar industry globally. Mukta Lad finds out how brands in India tackle the counterfeit menace, which is a threat to their reputations, revenues and consumer trust.

In a world where we’re encouraged to be our most authentic selves, it’s ironic how the same might not be true of the brands we buy. Often, we see aggrieved customers demanding their money back after realising that the shoes they purchased online weren’t ‘surprisingly cheap’ but were, in fact, fakes. And who hasn’t seen the ‘Poma’ bags or the ‘Adibas’ caps openly sold? A 2021 report by Crisil and the Authentication Solution Providers Association (ASPA) revealed that 25-30% of all products sold in India are spurious.

Counter feiting is most prevalent in apparel and FMCG, followed by pharma, automotive and consumer durables categories. In the study, Nakul Pasricha, president, ASPA, revealed that the spurious goods market stood at `2.6 lakh in FY20. Interestingly though, 31% of consumers willingly purchase counterfeit products. So here’s the question: How do brands solve this problem?

The menace of fakes

“We encounter two primary issues: Lookalike products and spurious products,” says a Reckitt spokesperson. Misspelt products are an example of lookalikes, while fake products with the same brand names are considered counterfeit or spurious. “Both violate legal rights of brands copied and counterfeited,” the spokesperson says. Fake goods are usually mass-produced at scale, without any regulatory or quality checks.

These inferior products erode a company’s reputation and consumer trust, not to mention the leaks they cause in its revenue stream. While duplicates are bad news for any brand or industry, the repercussions for a consumer buying a fake luxury watch are different than those consuming spurious medication or alcohol; the latter posing a threat to a consumer’s health and safety. Brands, however, have teams dedicated to cracking down on this issue.

“Our global product-protection team conducts audits and alerts authorities on suspected counterfeit products,” says a spokesperson for healthcare company Abbott. Whatever the category, brands are united by their efforts to nip this problem in the bud. Homegrown electronics brand Boat has a separate team to track counterfeits — including utilising various technologies, partnerships and surveillance and monitoring agencies — for both online and offline. The company also proactively “trains employees to identify and report counterfeit products”, shares a Boat spokesperson.

Meanwhile, sports apparel brand Puma’s brand protection team identifies sellers, manufacturers and wholesalers to ensure that counterfeit products are removed from the market, or better still, don’t get to the market at all. This involves deploying several strategies, working closely with customs officers and watching the entire value chain like a hawk. According to the Crisil and ASPA study, the automotive sector stands at 25% when it comes to customers coming across counterfeit goods. Santosh Iyer, MD and CEO, MercedesBenz India, says that it’s mostly spare parts and merchandise where the fakes persist for the industry.

For the counterfeits sold in the luxury timepiece category, however, it is common that the buyers are aware of the choice they’re making. Sanjay Mishra, director, Franck Muller, FM International Watches and Jewellery, elaborates, “Most of them [people buying counterfeit goods] encounter issues shortly after limited use, showing the inferior quality of these duplicates.

However, there might be cases where consumers may not be aware of the counterfeit product and in such cases, they face a huge loss.” Vidushi Thapa, director and head of buying and merchandising at Puma India, adds, “If one spots a Puma product on an unauthorised platform with significant discounts from its original MRP, it’s likely to be a fake. Unfortunately, when consumers opt for these discounted products and face disappointment postpurchase, it’s the brand’s image that suffers.”

Tackling with tech

A 2022 US Intellectual Property and Counterfeit Goods research paper says that as of 2018, counterfeiting is the largest criminal enterprise in the world, with domestic and international sales of such goods totalling between an estimated $1.7 trillion and $4.5 trillion a year. Online marketplaces are also fighting the good fight against duplicates. Meesho has created a ‘Suraksha List’ comprising approximately 1,800 brands that have been identified as high-risk for infringement and counterfeiting. “Since January 2023, nearly 97 lakh counterfeit and infringing product listings and 10 lakh restricted products have been deactivated,” says a spokesperson.

Overall, brands look to technology-led solutions to help themselves and consumers distinguish between genuine goods and fakes. Unsurprisingly, artificial intelligence programs and machine learning algorithms are two of the main ingredients in anti-counterfeiting tech. Take the fashion industry, for example. According to research by Technopak Advisors, AI can help fashion companies authenticate items and prevent knock-offs by analyzing various product features like material and stitching. Some of these nuances are even invisible to the naked eye.

Diageo India, the maker of alcobev brands such as Johnnie Walker and Smirnoff, has been using a blockchain-based track and-trace system for its bottles since 2022. A blockchain and Internet of Things (IoT)- based traceability solution and smart tamper proof labels replace manual records and track each transaction, while the product moves through the supply chain. It usually allows the end consumer to scan codes on the label and do an authenticity check. QR codes, too, are a quick, common way for consumers to ascertain the genuineness of the product.

The Abbott spokesperson says, “Some of our key pharmaceutical brands have a QR code on their packaging to help patients, caregivers, consumers and healthcare professionals instantly verify whether a product is genuine.” “Our technology allows us to scan product listings and identify potential counterfeit items. Our team is responsible for detecting patterns indicative of counterfeit activity, investigating reports from users and taking appropriate action to remove counterfeit listings from the platform,” says the Meesho representative.

Going legal While the Indian law has several legal recourses for brands to fight counterfeit goods, it’s an uphill task to track down fakes. But it helps to file cases swiftly and take action. As Mishra says, “It’s the respective categories’ responsibility to file and bring it to the department’s notice to refrain from such illegal business.” Upon receiving a complaint, local law enforcement conducts raids, explains the Reckitt spokesperson. “These operations result in the seizure of goods [both finished and unfinished], raw materials, packaging materials and machinery.

The accused are arrested accordingly.” There are also several wins. “We won a lawsuit a few months ago, where the Delhi High Court gave a ruling in our favour and an Agra-based manufacturer-cum-wholesaler had to pay us damages for selling counterfeit shoes bearing Puma’s logo,” says Thapa. Experts also point out that the government is working on designing a system to identify and prevent counterfeit goods in the retail market. Any deviations found under this system can mean licence cancellations and penalties for offending manufacturers.

Marketing for awareness

Educating customers about counterfeits and helping them identify the fakes is a responsibility that companies have taken up. “In the past six months, Meesho has sent targeted notifications to approximately five lakh customers, cautioning them about common frauds,” says the spokesperson. “Our marketing efforts extend beyond promoting our products; they also serve to educate consumers about the risks associated with counterfeit goods,” says the Boat spokesperson. “By raising awareness, we empower consumers to make informed purchasing decisions and protect themselves from potential harm.”

23. Gender equity hopes pinned on Melinda French Gates’s charity.

ET, 17 May 2024

Melinda French Gates is already one of the biggest philanthropic supporters of gender equity in the United States and is now poised to put another $12.5 billion toward intractable problems like closing the gender pay gap and increasing women’s political participation, her grantees hope.

APFILE - Co-chair of the Bill & Melinda Gates Foundation Melinda French Gates smiles as she leaves the Elysee Palace, June 23, 2023, in Paris. Melinda French Gates will step down as co-chair of the Bill & Melinda Gates Foundation, the nonprofit shone of the largest philanthropic foundations in the world that she helped her ex-husband Bill Gates found more than 20 years ago. (AP Photo/Christophe Ena, File)

The additional funds come as French Gates announced on May 13 that she was stepping down as co-chair of the Gates Foundation, which she founded together with her ex-husband Bill Gates more than 20 years ago. Gates will provide the $12.5 billion as part of an agreement made when they divorced in 2021.

Organisations such as Paid Leave For All, founded in 2019 to coordinate advocacy around passing federal paid leave legislation, said French Gates’s steady support over the years as well as her advocacy to highlight the issue, counterbalance other funders who have been slow to back difficult fights like theirs.

While no one knows exactly what French Gates’s future plans are, the grantees anticipate she will use the funds as part of her focused advocacy and philanthropic support for increasing the power and influence of women.

For a cause In her post on May 13 announcing her resignation, French Gates said she planned to commit the funds to her work on behalf of women and families, adding, “I’ll be sharing more about what that will look like in the near future.”

French Gates work s through her organisation, Pivotal Ventures, which is alimited liability company that also manages investments in for-profit ventures.

‘Considerate funders’

The Bill & Melinda Gates Foundation, which will change its name to the Gates Foundation, is one of the largest philanthropic organisations in the world. As of December 2023, its endowment was $75.2 billion, thanks to donations from Gates and the billionaire investor Warren Buffett. Pivotal Ventures has targeted a numb er of avenues to increasing women’s economic and political participation and power, like closing the wage gap, compensating care work often done by women, and encouraging women to run for political office.

Debbie Walsh, director of the Center for American Women and Politics at the Eagleton Institute of Politics at Rutgers University, began working with French Gates as far back as 2018, she said.

“I have to say, they were one of the most considerate funders. They provided funding for general support and asked only that we could make ourselves available to give guidance and advice early on,” Walsh said. She also credited French Gates with having a capacity for giving and focus on gender equity that no other single funder or foundation offers.

24. GenAI Set to Create Impact Not Seen or Imagined: Chandra

ET, 17 May 2024

N Chandrasekaran, Chairman, Tata Consultancy Services (TCS), has said that generative artificial intelligence (GenAI) technologies will have an unprecedented business impact across sectors while stepping up productivity.

“Enterprises have already invested in cloud, data infrastructure and large processing power which will aid AI/GenAI. GenAI will not only improve productivity, but also create impact we hitherto have not seen or imagined,” Chandrasekaran said in his annual letter to shareholders. The letter is part of the annual report of India’s biggest outsourcing company, which makes up more than a third of the market capitalisation of the Tata Group.

“Across industries globally, there are multiple mega trends that are shaping the priorities of businesses: AI, New Energy, Supply Chain and Talent. These transitions will require substantial investment in technology across industry sectors,” Chandrasekaran added.

Chandrasekaran, who is also chairman of parent company Tata Sons, said that following the post-pandemic economic slowdown, intensified military conflicts continue to impact global supply chains.

“New global supply chain ecosystems are being created with India playing an important role in advanced manufacturing,” he said.

25. 17 firms under IT hardware PLI to start production this year: IT Secretary

ET Gov. PTI, 17 May 2024

Flextronics is among the big names that have been granted approval under the IT hardware scheme.

Majority of personal computer and server makers selected under the IT hardware production-linked incentive scheme are expected to start production this year, a senior government official said on Friday. "About 17 out of 27 PLI companies will start production this year. Around 6-7 of them started production last year and two have plans to start production next year," Ministry of Electronics and IT (MeitY) Secretary S. Krishnan said on the sidelines of the inauguration of a new high-end computing server manufacturing unit of Netweb Technologies here.

The government in November, 2023 approved the application of 27 companies, including Dell, HP, Foxconn, Lenovo, Netweb Technologies, under new production-linked incentive (PLI) scheme for IT hardware.

Among the big names that have been granted approval under the IT hardware scheme are Flextronics, VVDN, and Optiemus. Other applicants that have received the green signal include Padget Electronics, SOJO Manufacturing Services, Goodworth, Neolync, Syrma SGS, Mega Networks, Panache Digilife, and ITI Ltd, among others.

On the Rs 10,372-crore India AI mission, Krishnan said domestic companies will get preference.

The Cabinet on March 7 this year approved the India AI Mission with an outlay of Rs 10,372 crore for five years to encourage AI development in the country.

The approved corpus will be used to build a high-end scalable AI ecosystem in public-private partnership mode. The mission will be implemented through the IndiaAI Independent Business Division (IBD) under Digital India Corporation (DIC).

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Saturday 18 May 2024

NEWSLETTER, MAY 2024

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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

NEWSLETTER, MAY 2024

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- Agriculture, Fishing and Rural Development

- Industry and Manufacture

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

India and the World

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