AAPI: Newsletter, June 2024

DELHI, JUNE 2024

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Trent Plans Global Retail Push After Acing it in India
22. NSA Jake Sullivan to visit New Delhi to engage new govt on shared India-US priorities: White House
23. Knowledge & technology led agriculture: Increasing production, democratising access to food
24. From local talent to global force: Bridging the skills gap for India's overseas workforce
25. Global Rates will Come Down, India Certainly to be A Top Beneficiary

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DELHI, JUNE 2024

NEWSLETTER, JUNE 2024

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1. Building excellence that promotes business growth

ET, 29 May, 2024

With a focus on creating intelligent ,collaborative and dynamic workplaces that match the substantial growth being witnessed in the National Capital Region (NCR), L&T Business Park is a prime commercial property that ticks all the boxes in terms of smartness, sustainability and security.

While offering Grade-A spaces on lease on the Delhi-Mathura Road, L&T Business Park promotes a flexible and harmonious work environment. Conveniently located at a minute’s walk from the Sarai metro station, the mega-structure is designed to cater to 24x7 business operations. It is centrally air-conditioned with a plethora of conveniences in line with current and future needs for the commercial growth of any organisation.

The floor plates offer 20,000 sq.ft to 63,000 sq.ft spaces spread at each level, allowing for highly efficient interior layout options. The central core has ample vertical transportation with eight high-speed lifts and an additional service elevator to ensure smooth movement of people in the 11-floor office tower. Open surroundings on all four sides offer abundant sunlight and ventilation.

Spotlight on Faridabad

Under the Smart City project, Faridabad a switnessed the development of one park, while work on two others is in progress. Additionally, the development of three smart roads has also been completed, besides infrastructural support to 19 other roads in the city has also been provided.

All this latest development will certainly provide a fillip to Faridabad’s better connectivity to other parts of NCR, as envisaged by the Transit-Oriented Development (TOD) concept, which will lead to enhancement in ease of business. Moreover, the reasonable rentals offered by Faridabad as compared to other micro-markets in NCR is an added advantage for businesses here.

Accordingly, L&T Business Park offers ample open areas, a well-designed terrace garden with a water body, huge frontage, provision for a 500-plus capacity food court with dining area, a horizontal spread of property that will cover 4.4 lakh sq.ft of leasable and strata sale area, greenery to help relax and rejuvenate, and high-level security.

Top-end amenities that put occupants at the centre of the development make this project a state-of-the-art workplace. Express connectivity and accessibility to other centres of economic activity, li ke Gurugram, Noida and Delhi, is the crowning stroke.

Sustainability factor

L&T Realty has been an industry leader in implementing sustainable design principles in its projects to encourage conservation as well as optimal utilisation of natural resources through rainwater harvesting, solar energy harnessing and energy-efficient water pumps, thereby helping reduce its carbon footprint.

In fact, L&T Business Park is the only LEED Indiacertified, gold-rated project in Faridabad. This certification u nderscores the project’s impact on the environment at the time of construction. The LEED certification is meant to translate into lower overheads and increased savings for occupiers.

L&T Realty is the wholly owned real estate development arm of the $26-billion Indian multinational giant Larsen & Toubro. L&T is India’s one of the most valuable companies with a presence in over 50 countries and is known for developing world class commercial parks, residential complexes, a technology-driven global power house with diverse business interests in finance, infotech, IT, infrastructure, shipbuilding, nuclear power, defence, manufacturing, aerospace, nuclear reactors, systems for satellites and missiles, oil and gas, airports, metros and turnkey projects.

L&T Realty is renowned for developing iconic buildings in India and abroad — from the Ram Temple in Ayodhya to Bahai Temple in Delhi, the Atal Setu and the RBI building in Mumbai, the Statue of Liberty in Gujarat, as well as metro rail corridors, coastal roads, bridges, hospitals, stadiums and airports. The firm is creating an enviable niche for India on the global map by building the tallest, heaviest and longest structures in the world.

2. Revolutionizing early childhood education: A roadmap to ignite improvements in quality, accessibility

ET Gov., 20 May 2024

In a land as vast and diverse as ours, early childhood education is riddled with disparities—be it in access, quality, or outcomes.

Early childhood education, the foundation upon which we build our future citizens, demands not just attention but an audacious reimagining of its potential and impact.

Often, the unimaginable begins with a simple step outside the conventional, a leap into the transformative power of grassroots innovation and leadership. When teachers craft their own roadmap for enhancing early childhood education, they commit to doing the unimaginable—reshaping the very bedrock of societal growth.

The Present Dilemma

In a land as vast and diverse as ours, early childhood education is riddled with disparities—be it in access, quality, or outcomes. Many children, especially in underserved areas, are still denied the high-quality education they deserve.

Data points are bleak, showing less than adequate enrolment figures in pre-primary programs and even worse learning outcomes. This is not just a gap; it's a gaping chasm waiting to be bridged. And who better to bridge this chasm than the very architects of learning—our teachers?

Crafting a Maverick Roadmap

Curriculum as a Catalyst: Just as an entrepreneur sees opportunity in challenges, teachers must view the curriculum not just as a set of guidelines but as a playground for innovation. Integrating play-based learning with critical thinking exercises can transform rote classrooms into hubs of vibrant activity and engagement. It’s about taking the ordinary and turning it into something extraordinary.

The Professional Growth Paradigm: True change is driven by continuous improvement. For teachers, this means embracing professional development as a tool for transformation—not just their own but also that of their students. Participating in innovative training programs and peer learning initiatives can ignite a spark that traditional methods fail to kindle.

Parental Engagement: Transforming Education into a Community Quest: Every parent dreams of their child achieving the unimaginable, and every teacher can help realize this dream. By turning parents into partners, we transform Education into a collaborative quest, not just a classroom routine. Regular workshops, parent-teacher interactions, and community involvement initiatives can significantly amplify the impact of educational efforts.

Leveraging Technology: Building Bridges, Not Barriers: In the age of digital transformation, technology is not just an enabler but a revolutionary force. Utilizing digital tools to deliver personalized learning experiences can help overcome geographical and infrastructural barriers, turning remote classrooms into global learning centres.

Reflective and Gamified Assessments: Navigating the Learning Labyrinth: Unlike traditional methods that often measure too little too late, reflective and gamified assessments provide immediate insights into both successes and areas needing attention. These should be tools for guidance, not judgment, helping teachers tailor their methods to better meet their students' diverse needs.

Equipping Young Minds for the Future: The Importance of Brain Exercises. Brain exercises are critical for children to develop the cognitive flexibility and problem-solving skills necessary to navigate future challenges in an ever-evolving world. These activities enhance critical thinking, creativity, and adaptability, equipping young minds with the tools to succeed in diverse environments. Engaging in these exercises from a young age sets the foundation for lifelong learning and the ability to thrive in the dynamic landscapes of tomorrow.

Years ago, while visiting a rural school in Haryana, I met a young teacher named Meera who had transformed a dilapidated village classroom into a vibrant learning centre. Despite limited resources, Meera used local materials to create learning aids and engaged parents by holding community classes.

This experience underscored for me how resourceful, committed educators can ignite substantial improvements in educational quality and accessibility, even in the most challenging environments.

Embracing the Unimaginable

As teachers, our role extends beyond teaching; we are the harbingers of change. The roadmap to enhancing early childhood education is not etched in the policies of old but in the innovative actions we choose to undertake today.

Let’s commit to this path with the resolve to not only imagine but achieve the unimaginable, crafting a future where every child’s potential is not just recognized but realized. Through daring, dedication, and a dash of disruptive thinking, we can indeed redefine the contours of early childhood education. Let the change begin with us, here, now.

(The author is Founder Chairman, Sampark Foundation; Views are personal)

3. Government is implementing PLI scheme for High Efficiency Solar PV Modules: R P Gupta CMD SECI

ET Gov. 3 June, 2024

"India imported $5 billion worth of solar cells and modules in 2023. The imports rose 89.3% from $2.6 billion in 2022": R P Gupta, Chairman & Managing Director, Solar Energy Corporation of India

“In Lakshadweep Islands, Solar Energy Corporation of India (SECI) has developed a 1.7 MW solar project which is accompanied by a 1.4 MWh Battery Energy Storage System. Before the commissioning of this project, much of the electricity in the Lakshadweep Islands was being generated through diesel generators. This kind of electricity is costly and polluting.

“Aimed at fulfilling the electricity needs of Lakshadweep islands through green solar energy, the SECI project is anticipated to save ₹250 crore, reduce diesel consumption by 190 lakh liters while offsetting 58,000 tonnes of carbon emissions during its anticipated technical lifespan.”

This was stated by R P Gupta, Chairman & Managing Director, Solar Energy Corporation of India, in conversation with Anoop Verma, Editor (Desk), ETGovernment. In the interview that follows, Gupta sheds light on the initiatives being taken by SECI to promote solar and other forms of renewable energy.

Edited excerpts:

As a part of the climate pledge, India had committed to installing 175 GW of renewable energy. How much progress has the country made in achieving this pledge? What is the contribution of solar in this renewable energy target?

The Prime Minister had given the target of 175 GW for renewable energy as a part of India’s climate pledge. This target was to be achieved by 2022. We have achieved this target in the beginning of 2023. The contribution of solar power in this target was 100 GW. Due to lower than expected installation of solar rooftop projects and systems for feeder solarization of the agriculture sector, so far we have achieved about 83 GW of installed capacity in solar energy. At present, the ground mounted solar plants have the capacity of 65.01 GW. The grid connected solar rooftop has the capacity of 12.01 GW. The hybrid projects with solar components are generating 2.57 GW and about 3.04 GW comes from off-grid solar.

Why was installation of solar rooftop projects lower than expected?

The response was not as high as we expected. If someone is getting electricity at a subsidized rate or for free, then he might not be enthusiastic about solar panels. But if he has the opportunity to sell the extra power that he generates and make money, then installing solar panels becomes viable for him. The government has made some changes in policy to allow people who install solar panels to sell their extra energy to the discoms. This has made solar rooftop installations attractive for households. Now there is a surge in demand. The way the solar industry is advancing, it is certain that even without rooftop and PM Kusum we will achieve the target of 100 GW this year. Now we are pursuing a much bigger target of 500GW energy from non-fossil fuel sources. The contribution of solar will be more than two-thirds of the additional capacity.

Rooftop solar installations can be a source of cheap and green energy, especially for people in small towns and rural areas. What steps are you taking to promote rooftop solar installations?

"As per provisional figures, SECI has traded over 43 billion units of RE power in FY24."

SECI has been playing a pivotal role in promoting rooftop solar through competitive bidding routes under various schemes of MNRE. Through our tenders more than 4800 rooftop projects of about 405 MW have been commissioned through third party investments. SECI has signed an MoU with the Ministry of Home Affairs for undertaking installation of Solar Rooftop PV Power Plants on roofs of CAPF Forces. Under this over 16 MW of capacity has been awarded. SECI is also disbursing subsidies under the National Portal for rooftop solar under which around 57,700 applications have been processed and ₹326 crore has been disbursed. With our own investment, we have developed 1 MW of rooftop projects in the Andaman & Nicobar islands. This project was commissioned in June 2017 and is under operation.

Since its inception in 2011, SECI has played a central role in achieving the vision of the National Solar Mission. What are key achievements of the SECI in the last 13 years?

We are working to fulfill the Government of India’s vision for developing the renewable energy sector in the country. Since inception in 2011, SECI has awarded over 65 GW of RE capacity through competitive bidding. Under these, over 21 GW capacity was commissioned till April 2024. In 2022, SECI issued a first of its kind tender for 500 MW and 1000 MWh standalone battery energy storage systems which will provide Discoms with storage facilities to be used on an on-demand basis. Under the Government of India’s SIGHT scheme SECI has already awarded 4,12,000 MT production facilities for Green Hydrogen and 1.5 GW manufacturing capacities for electrolysers in February 2024. Another major achievement is that our RE power trading volume has increased from 9 million units in FY15 to over over 35 billion units in FY23. As per provisional figures, SECI has traded over 43 billion units of RE power in FY24.

What are the new innovations that SECI has introduced in the renewable energy sector?

SECI has introduced several innovative power supply models and tenders that integrate energy storage provisions, such as round-the-clock power, peak power, standalone energy storage systems, firm and dispatchable RE and other such systems. SECI has also made significant investments in developing innovative projects.

In Lakshadweep Islands, SECI has developed a 1.7 MW solar project which is accompanied by a 1.4 MWh battery energy storage system. Before the commissioning of this project, much of the electricity in the Lakshadweep Islands was generated from diesel generators. This kind of electricity is costly and polluting. Aimed at fulfilling the electricity needs of Lakshadweep islands through green solar energy, the SECI project is anticipated to save ₹250 crore, reduce diesel consumption by 190 lakh liters while offsetting 58,000 tonnes of carbon emissions during its anticipated technical lifespan.

You have set up a large solar project in Chhattisgarh. How is this project working?

SECI has set up the country’s biggest solar energy plant with a battery energy storage system near the Dhaba village in the Rajnandgaon district of Chhattisgarh. Through this project we aim to demonstrate the commercial viability of large-scale battery storage projects in Indian conditions for meeting peak demand of utilities. This solar energy plant will provide electricity even during the night and will reduce carbon emissions by over 4.5 lakh metric tons.

How much funds are being spent on importing the technologies and components needed for solar power generation? Which countries are among the major suppliers?

India imported $5 billion worth of solar cells and modules in 2023. The imports rose 89.3% from $2.6 billion in 2022. Solar modules accounted for 60.7% of the annual solar imports, while solar cells accounted for the remaining 39.3%. China was the largest supplier of solar photovoltaic products to India, accounting for 58% of the total imports, followed by Vietnam at 16.6%, and Malaysia at 11.7%. Thailand, Hong Kong, and Cambodia are also among the major suppliers, accounting for 5.6%, 3.5%, and 3.1% of the total imports, respectively.

This means that India is currently importing most of the systems and technologies for generating solar power. What steps are being taken to promote domestic manufacturing of solar panels and other products?

To build an ecosystem for manufacturing of high efficiency solar PV modules in India and reduce import dependence, the Government of India has taken out the Production Linked Incentive Scheme for National Programme on High Efficiency Solar PV Modules. This scheme has an outlay of ₹24,000 crore and it is aimed at achieving manufacturing capacity of Giga Watt scale in High Efficiency Solar PV modules. In April 2023, SECI awarded 39,600 MW of fully and partially integrated solar PV module manufacturing capacities under the PLI scheme, tranche II. We have also awarded 3 GW of solar manufacturing capacity as a part of the 12 GW solar manufacturing linked tender–of this 2 GW has been commissioned.

4. Civil aviation minister Kinjarapu Rammohan Naidu promises to push 'ease of flying' using technology

ET Gov. 14 Jun. 2024

Union Minister Kinjarapu Rammohan Naidu officially assumed charge of the Ministry of Civil Aviation in New Delhi Thursday. Minister of State for Civil Aviation and Cooperation, Murlidhar Mohol, Civil Aviation Secretary, Vumlunmang Vualnam, along with senior officers of the ministry were present on the occasion.

Addressing the media on the occasion, Naidu said that the key priorities of the ministry would be to create an 'ease of flying' scenario, making air travel more accessible and convenient for every citizen. He emphasized the benefits of aviation should reach every corner of the country, with focus on tier two and tier three cities.

In line with Prime Minister Narendra Modi's vision for Viksit Bharat, Naidu said, “We are going to formulate and implement a 100-day action plan to drive immediate progress in India's aviation sector. This plan will serve as a stepping stone towards achieving the long-term vision of Viksit Bharat as India celebrates 100 years of its independence in 2047.”

The Union minister also emphasised on the importance of use of technology in enhancing passenger experience, and plans to leverage artificial intelligence and social media to address passenger concerns effectively. He assured that the ministry would prioritise passenger comfort and convenience in all policy decisions.

Naidu further outlined specific initiatives aimed at enhancing air connectivity, promoting eco-friendly practices, and accelerating infrastructure development across the country. He pledged to work closely with state governments, industry stakeholders, and alliance partners to realise these goals. Regarding the completion of the Greenfield airport in Bhogapuram in Vizianagaram district, the minister expressed his personal commitment to expedite the project.

Naidu expressed his gratitude to Prime Minister Narendra Modi for entrusting him with the crucial responsibility of leading the Ministry of Civil Aviation. He emphasised that the choice of a young and energetic leader signifies a forward-looking approach, focused on shaping the future of the aviation industry for the next 25 years.

While acknowledging the support of the people of his constituency Srikakulam and Andhra Pradesh state, the Union minister thanked Chief Minister of Andhra Pradesh N. Chandra Babu Naidu and recalled the role of his father, Late Kinjarapu Yerran Naidu, a distinguished politician.

The Union minister reaffirmed the government's unwavering dedication to make India the world's leading domestic aviation market. He also expressed confidence in the strong and stable leadership of the NDA for building a prosperous and developed India.

5. Pradhan Mantri Awas Yojana: Union Cabinet approves govt assistance for constructing 30 million houses under PMAY

ET Gov. 12 Jun. 2024, PTI

The first Cabinet meeting of the new NDA government headed by Prime Minister Narendra Modi held at his residence in New Delhi on Monday.

The Union Cabinet in its first meeting under the chairmanship of Prime Minister Narendra Modi on Monday approved government assistance for the construction of three crore houses under the Pradhan Mantri Awas Yojana (PMAY). This was the first meeting of the Union Cabinet of Modi 3.0 government held at the Prime Minister's 7, Lok Kalyan Marg residence. The meeting was attended by ministers of all allies of the NDA.

"It has been decided in the Cabinet meeting today to provide assistance to three crore additional rural and urban households for the construction of houses to meet the housing requirements arising out of the increase in the number of eligible families," officials said.

The government of India is implementing the PMAY since 2015-16 to provide assistance to eligible rural and urban households for the construction of houses with basic amenities.

Modi lauded the decision as a boost for "ease of living" and dignity for crores of Indians.

He said on X, "This decision underscores the government's commitment to addressing the housing needs of our nation and ensuring that every citizen leads a better quality of life. The expansion of PMAY also highlights our government's commitment to inclusive growth and social welfare."

Under PMAY, a total of 4.21 crore houses have been completed for the eligible poor families under the housing schemes in the last 10 years.

All the houses constructed under PMAY are provided basic amenities like household toilets, LPG connection, electricity connection and functional household tap connection through convergence with other schemes of the central and state governments.

- Agriculture, Fishing and Rural Development

6. Food Safety And Standards Authority Of India: FSSAI alerts traders to ensure compliance with prohibition of calcium carbide in fruit ripening

ET Gov. 20 May 2024, ANI

FSSAI alerts traders to ensure compliance with prohibition of calcium carbide in fruit ripening

The Food Safety and Standards Authority of India (FSSAI) has alerted traders, fruits handlers and Food Business Operators (FBOs) who are operating ripening chambers to strictly ensure compliance with the prohibition on Calcium Carbide for artificial ripening of fruits, particularly during the mango season.

FSSAI is also advising Food Safety Departments of States/UTs to remain vigilant and take serious action and deal stringently against person(s) indulging in such unlawful practices as per the provisions of FSS Act, 2006 and Rules/Regulations made thereunder, the Ministry of Family and Health Welfare informed in a press release.

Calcium carbide, commonly used for ripening fruits like mangoes, releases acetylene gas which contains harmful traces of arsenic and phosphorus. These substances, also known as 'Masala', can cause serious health issues such as dizziness, frequent thirst, irritation, weakness, difficulty in swallowing, vomiting and skin ulcers, etc.

Additionally, acetylene gas is equally hazardous to those handling it. There are chances that calcium carbide may come in direct contact with fruits during application and leave residues of arsenic and phosphorus on fruits, the release stated.

Due to these dangers, the use of calcium carbide for ripening fruits has been banned under Regulation 2.3.5 of the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011.

This regulation explicitly states, "No person shall sell or offer or expose for sale or have in his premises for the purpose of sale under any description, fruits which have been artificially ripened by use of acetylene gas, commonly known as carbide gas."

Considering the issue of rampant use of banned calcium carbide, FSSAI has permitted the use of ethylene gas as a safer alternative for fruit ripening in India. Ethylene gas can be used at concentrations up to 100 ppm (100 ml/L), depending upon the crop, variety and maturity.

Ethylene, a naturally occurring hormone in fruits, regulates the ripening process by initiating and controlling a series of chemical and biochemical activities. The treatment of unripe fruits with ethylene gas triggers the natural ripening process until the fruit itself starts producing ethylene in substantial quantities.

Further, the Central Insecticides Board and Registration Committee (CIB & RC) has approved Ethephon 39 per cent SL for the uniform ripening of mangoes and other fruits.

The Ministry emphasised that FSSAI has published a comprehensive guidance document titled "Artificial Ripening of Fruits - Ethylene gas a safe fruit ripener" suggesting the Food Business Operators to follow the procedure for artificial ripening of fruits.

This document outlines a Standard Operating Procedure (SOP) incorporating all aspects of artificial ripening of fruits by ethylene gas viz. Restrictions, Requirements for Ethylene Ripening System/Chamber, handling conditions, Sources of Ethylene Gas, Protocol for application of Ethylene gas from various sources, post treatment operations, safety guidelines etc.

"In case any use of Calcium Carbide or any wrong practice of using ripening agents for artificial ripening of fruits is noticed by the consumers, the same may be brought to the notice of concerned State Commissioners of Food Safety for taking action against such violators," the release added.

7. Wheat procurement by govt agencies crosses 26 MT till May 20: Govt data

ET Gov. 23 May 2024, ANI

Procurement of wheat will continue till the end of this month.

The purchase of wheat by government agencies in the current Rabi season has crossed 26 million tonnes (MT) and is likely to surpass last year's figure of 26.2 MT this week.

The Food Corporation of India and state procuring agencies are likely to procure over 27 MT this rabi season.

Government sources told ANI that 27 MT will be enough to meet the requirements of the Pradhan Mantri Garib Kalyan Anna Yojana and needed buffer stocks. Procurement of wheat will continue till the end of this month.

At the beginning of the season, the food ministry had projected to procure 30-31 MT of wheat this season.

The biggest contributor of wheat to the central pool is Punjab, from where a record 12.36 MT is already procured and it is expected that by the end of this procurement season, it will reach a record 12.5 MT.

The second biggest contributor of wheat to the central pool is Haryana. Procurement from the state this season is about 7.1 MT by FCI and state government agencies. Purchase operations in the state ended last week.

There is a lag in procurement from Madhya Pradesh, so far only 4.73 MT of wheat has been procured from the state, much less than the 7 MT bought last year.

The initial target of procurement from M.P was 8 MT. Uttar Pradesh's contribution so far in wheat procurements is only 0.88 MT

So under the minimum support prices (MSP) purchase scheme government has spent over Rs 50,634 crore for procurement of wheat from about 20.5 lakh small and big farmers.

Current wheat stocks in the central pool are 26.85 MT against the buffer stock of 26.58 MT for July 1st.

The government has announced an MSP of Rs 2275 per quintal for wheat for FY 25, which is Rs 150 per quintal more than the previous season. In addition to MSP, Rajasthan and Madhya Pradesh have announced a bonus of Rs 125 per quintal to boost purchase in the state.

8. We are seeing a global blue revolution in food, transport and energy now — booming coastal real estate is a true paradox of climate change

ET, 31 May 2024

Martin Smith is the George M. Woodwell Distinguished Professor of Environmental Economics at Duke University. Speaking to Srijana Mitra Das, he discusses ocean economics — and sustainable seas.

Martin Smith

Q. What is the core of your research?

A. I work on the economics of oceans and coasts. Within economics, this is quite a niche area—yet, oceanic environments compose 70% of our planet. I focus on fisheries, seafood production and the markets for these. I also study aquaculture and the farming of fish as well as climate impacts and adaptations in coastal zones — whether these strategies are suited to the long term or maladaptive is tied to key economic issues. My work is linked with bioeconomics, which puts biology and economics together and studies stocks of natural resources alongside e conomic drivers of human systems.

Q. What is the global ‘blue revolution’?

A. The term ‘blue revolution’ puts emphasis on the role of oceans in our daily lives and economies. One of its drivers is a recognition that food security globally will increasingly rely on aquatic environments — this is already of critical importance for many people worldwide but there is an awareness that a growing share of animal protein, to the extent that humans continue to consume this, will come from the seas. One reason is the growth potential in coastal environments and new technologies for using freshwater systems to grow fish.

Another reason is farming seafood is a far less greenhouse gasintensive production technology than having terrestrial livestock — a lot of the blue revolution is thus about sustainable food production. Also, we are seeing how oceans are crucial to our trading systems, shipping networks and green energy now — as we transition towards renewable energy and decarbonising, we’ll need clean energy like offshore wind and tidal power, sourced from the seas.

Q. Over 34% of the world’s fisheries are already over-farmed — what are the implications for future aquaculture?

A. I tend to think of the global statistics for the over-exploitation of fisheries in a ‘the glass is half-empty/half-full’ light. Many parts of the world are successfully regulating fisheries sustainably now. There are huge challenges, including climate change. But several fisheries are effectively managed now and we’ve learned a lot about what not to do. In aquaculture or reared fish, most seafood is minimally dependent on capture fisheries or wild fishing for feed, a lot of this produced from fish with a mainly vegetarian diet. Farmed fish now equals the total production of capture fish — that will only increase. By governing farmed fish well, we could see these supplies grow, with capture fisheries receding over time.

Q. Bycatch is pushing many fish species towards extinction — can economic strategies minimise this massive loss?

A. The term ‘bycatch’ means when you accidentally catch one species while pursuing something else, such as sea turtles or dolphins getting ensnared during tuna fishing. To address this, we need a whole slew of tools, including regulating mesh sizes of nets and other gear. We could also use governance tools — people who fish for a living should have a stake in the future benefits of the seas being sustainable. We could create catch rights, so individual fishers or collectives could have rights to a share of the total catch. A ‘Turf’ — territorial use rights in fisheries — could be established, where a community has rights to a slice of coastline and manages it sustainably.

The trick is investing industry participants in minimising bycatch — if you want shrimp fishers to not catch juvenile fin fish, you could give them stakes in the future status of those fish. That could create incentives to use better gear and fishing techniques to save these species. You could also restrict trawling in a habitat to a certain number of times, after which a gap is required — if you sell those rights with strong regulation, you could build incentives for participants to minimise their impacts.

Q. Coastal economies present a paradox — it’s widely known these face the impacts of climate change. Yet, coastal real estate keeps growing. Why?

A. The paradox stems in part from the reality that living in coastal places is desirable — it’s beautiful and offers economic opportunities which often don’t exist inland, from seafood production to shipping and tourism. However, these places are disproportionately vulnerable to climate change, sea level rise, compound flooding with storm surges from the sea and rainfall from freshwater systems, rising water tables impacting septic systems, etc. Economic drivers are thus increasing the value of coastal real estate — and climate change is whittling away at that. In America, we’re seeing wealthy people moving into coastal areas, pushing prices up, despite climate risks. Policy also creates this paradox in part — it intervenes to hold back the ocean through seawalls, beach nourishment, insurance, etc., subsidised at the federal level. This pushes against the tendency for coastal prices to reflect the underlying risks. We can’t give up adaptation — but this also inadvertently attracts private investment to vulnerable places.

9. Demand Under Rural Jobs Scheme Eases again in May

ET, 7 June 2024

Demand for work under the government’s flagship rural job guarantee scheme fell for a seventh straight month through May, indicating stronger economic conditions at the start of the new financial year.

Work demand under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) drops when better-paying employment opportunities are available.

According to preliminary data compiled by the rural development ministry, about 37.46 million individuals sought work in May under the scheme, down 12.1% from a year earlier. Similarly, members of 27.18 million households sought work in May, representing a 14.3% drop from a year before.

While work demand under the scheme tends to peak during the summer months, heat waves over vast swathes of India last month have weighed on demand, experts said.

“Elections may not have impacted demand much. During the last general election (in April-May 2019), MGNREGS work demand had risen from the previous year. Economic activity, or lack of it, is usually the biggest driver of such a demand,” said an official.

Heat waves and possible temporary delay in fund flow during elections may have impacted work demand last month, apart from strong economic activity, said NR Bhanumurthy, vice chancellor of BASE University in Bengaluru and lead author of a study in 2012-13 on unspent MGNREGS allocations. The preliminary data gets revised as and when updated information is available.

The economy grew at a higher-than-anticipated pace of 8.2% in the last fiscal year. High-frequency indicators suggest the momentum has continued in FY25 as well. Goods and services tax (GST) collections rose 10% in May from a year earlier to ₹ 1.73 lakh crore.

The International Monetary Fund (IMF) has forecast India will remain the world’s fastest-growing major economy in the current fiscal year and the next, with rates of expansion touching 6.8% and 6.5%, respectively, more than double the global average. The preliminary data show Andhra Pradesh led states with 6.06 million people seeking MGNREGS work in May, followed by Rajasthan (3.98 million), Telangana (3.81 million), Chhattisgarh (3.25 million), Uttar Pradesh (3.12 million), Bihar (2.75 million) and Karnataka (2.67 million).

For the FY25 fiscal year, the rural development ministry has fixed the person-day generation target (called the labour budget) under MGNREGS at 2.21 billion, down 27% from the actual level in the previous fiscal year, thanks to the forecast of strong economic activity and a normal monsoon.

In the interim budget for FY25, the government allocated ₹86,000 crore for the scheme, marginally lower than the actual ₹89,400 crore release in FY24. The government also remain prepared for any increase in work demand above the targeted level, officials said.

India had a below-normal monsoon in 2023, the first in four years. However, demand for work started contracting every month since November, as economic activity gathered pace.

10. India Adds 1.8 GW Open Access Solar Capacity During Jan-Mar

ET, 10 Jun. 2024, ANI

Open access solar installations rose two-fold in India to 1.8 gigawatts during January-March this year supported by several factors, including reduced module cost, US-based Mercom Capital has said. Solar power through open access is an arrangement where a power producer establishes a solar power plant to supply green energy to consumers.

India added over 1.8 gigawatts (GW) of solar open access capacity in the first quarter of the calendar year of 2024, posting a two-fold increase from 909.3 megawatts (MW) in Q4 2023, the report titled 'Mercom India Solar Open Access Market' said.

As of March 2024, the cumulative installed solar open access capacity stood at 14.3 GW.

Solar open access developers benefited from lower Chinese module prices and the suspension of the Approved List of Models and Manufacturers (ALMM) order for projects commissioned through March 2024.

Additionally, lower power purchase agreement (PPA) prices, due to reduced project costs, further incentivized consumers to adopt solar open access.

"Demand for green energy open access, especially solar, has been mounting, driven by the financial savings and initiatives to add renewable energy in the power procurement mix.

"An additional push comes from the corporates leading climate change mitigation strategies. If not for the regulatory restrictions, green energy open access could be the driving force that helps India meet its non-fossil fuel targets," said Priya Sanjay, Managing Director at Mercom India.

In Q1 2024, Rajasthan led solar open access capacity additions, accounting for almost 28 per cent followed by Andhra Pradesh and Maharashtra with 21 per cent and 12 per cent of capacity additions, respectively.

The pipeline of solar open access projects under development and in the pre-construction phase was over 18 GW as of March 2024. Almost 74 per cent of pipeline projects were in Karnataka, Rajasthan, Maharashtra, Tamil Nadu, and Andhra Pradesh.

- Industry and Manufacture

11. Making solar the smart business choice: Govt policies to drive investments & growth in the sector

ET Gov. 20 May 2024

Prioritising funding for rooftop solar as a sector lending initiative would ensure businesses can access lower-cost funds, facilitating broader SME participation in solar adoption efforts.

Rooftop and ground-mounted solar are already the smart choice for both small, medium and large-scale enterprises in India.

The payback on rooftop solar to a business owner is between 3-4 years, and sometimes even 2 years in the best cases. This is an incredible return on a product that is warrantied to deliver power for the next 25 years. It basically means that after a company reaches payback they have warrantied free electricity for the next 23 years.

So, the first, and overriding point, is that rooftop solar is already a super smart business choice, and indeed this is already known to many industrialists across India. Over the last 2-3 years in particular it has become a mainstream solution for India’s enterprise owners seeking to reduce their growing electricity bills.

Another solar solution that we call an off-site (ground-mounted) solar solution for Indian enterprise has also emerged. Wherein solar company sets up a solar park off-site within the same state as the enterprise. Then that company either sells the solar park to the enterprise to own or they just sell the power from the solar park, and keep ownership with themselves.

India is blessed with an incredibly progressive policy known as “Open Access”, which basically allows Indian enterprises to make use of the grid infrastructure to be able to source solar energy from a site that is not on or contiguous to their factory. The virtue of this is that enterprises are not now limited by their rooftops when it comes to how much solar power they can produce and use.

Amortised rates in Karnataka, for instance, can be as low as ₹3.5 per Wp, compared to the standard ₹8-9 per kWh charged by discoms. This model benefits both buyers and discoms, with increased energy generation and utilisation of existing infrastructure.

So, either way – whether it’s on-site with rooftop solar, or off-site with a solar park - solar is already the smart choice for Indian enterprise today. And what’s more, the Indian central government adds a sweetener of 40% accelerated depreciation which an enterprise can use to reduce their tax burden.

Policy Recommendations for Enhanced Solar Adoption

For Rooftop Solar: To accelerate solar adoption, the government can reinstate 100% accelerated depreciation for solar, which would provide a clear tax benefit, encouraging quicker adoption by enterprises. While solar is already cost-competitive with grid power, competing business priorities often delay adoption decisions.

Removing caps imposed by discoms, like Karnataka's 85% sanction load limit, would allow businesses to install more solar and sell surplus power back to the grid, as seen in initial net metering implementations.

States like Maharashtra and Karnataka have exceeded the Centre's recommended net metering cap of 500 kilowatts, indicating room for higher limits. Streamlining CEIG approval processes for rooftop solar installations up to 1MW or higher, as in Karnataka, would expedite adoption by reducing unnecessary delays.

Additionally, making financing more accessible to SMEs for solar ownership through priority sector lending initiatives would further accelerate adoption. In-house, collateral-free credit finance products targeting SMEs in India, have demonstrated success in enabling SMEs to pay off solar systems over 4-5 years with minimal late payments.

Prioritising funding for rooftop solar as a sector lending initiative would ensure businesses can access lower-cost funds, facilitating broader SME participation in solar adoption efforts.

For Offsite Solar: The focus should be on minimising charges for wheeling, banking, and power transmission to encourage adoption. While it's reasonable for discoms and transmission corporations to earn from infrastructure use, excessive charges deter off-site solar investments.

State regulators must monitor and regulate these rates to prevent overcharging. The Centre can also intervene to address excessive wheeling and transmission fees.

In Karnataka, transmission charges have risen to 1.63 per MW installed per month, impacting solar incentives. While charges are necessary, they should be balanced to avoid disincentivizing solar adoption.

Another concern is the duration of power banking. Presently, Karnataka allows banking for one month, down from one year previously. Ideally, banking should be extended to at least six months, with associated charges waived. Harmonising these policies nationally would bolster off-site solar investment and sustainability.

There is much the government can still do to expedite the spread of solar across India’s growing enterprise base. And in doing so, it will dramatically improve the competitiveness of Indian industry, while also improving India’s energy self-sufficiency.

We applaud the Prime Minister’s ongoing support for solar, and hope that some of the above policy recommendations can be helpful.

(The Author is Co-founder & CEO of Orb Energy; Views are personal)

12. The tech revolution: DST’s roadmap for making India the global hub of emerging, transformative science

ET Gov. 5 June, 2024

"The Department of Science & Technology places emphasis on both–translational research having immediate commercial benefits and basic sciences which advances the global body of knowledge that can lead to technology development in the years to come": Prof. Abhay Karandikar, Secretary, Department of Science and Technology, Government of India

“With over 120,000 startups, our country has emerged as the third largest startup ecosystem in the world. The rise of the startup ecosystem in the country has led to a significant narrowing of the gap between the laboratories and the market. DeepTech startups need substantial patient capital as the gestation period of developing technology in emerging tech can be very long.”

“National Quantum Mission launched by DST will nurture the quantum technology ecosystem in the country and make India one of the leading nations in this field”.

This was stated by Prof. Abhay Karandikar, Secretary, Department of Science and Technology, Government of India, in conversation with Anoop Verma. In the interview that follows, Prof. Karandikar sheds light on the initiatives that the Government of India is taking to enhance the R&D ecosystem in the country.

Edited excerpts:

India has a lot of catching up to do with the advanced countries in the area of science and technology. What new initiatives is the Department of Science and Technology taking to fund research and development work in the country?

The Department of Science and Technology is operationalizing the Anusandhan National Research Foundation (ANRF) to foster a culture of research and innovation and improve the R&D ecosystems in the universities and institutions. We expect the ANRF to play the same role in India that the National Science Foundation (NSF) has been playing in the USA. ANRF will provide a boost to the R&D programmes of our scientists and faculty in the universities and institutions by providing substantial funding.

Before the creation of ANRF, DST used to fund such programmes through its Science and Engineering Research Board whose yearly budget used to be ₹800 crores. The budget of ANRF is ₹2800 crore per year. We are also encouraging the industry to co-fund the programmes that ANRF will fund. The participation of private capital can provide further boost to the technology ecosystem in the country. In developed countries, around 70% of the R&D spend comes from the private sector. In India, it is the opposite, more than 65% of our R&D is through the government.

DST has launched a number of missions in the areas of emerging technologies. What are the key objectives of these missions?

One of the major missions that the Government has launched recently is the National Quantum Mission with an outlay of over ₹6000 crores. This will nurture the quantum technology ecosystem in the country and make India one of the leading nations in this field.

Under this mission we are going to set up four mission hubs in the areas of quantum computing, quantum communications, quantum sensing, and quantum materials and devices. We plan to develop intermediate-scale quantum computers with 50-1000 physical qubits. Similar goals have been formulated in other areas such as sensing, communications and materials and devices such as intercity quantum key distribution over 2000 km as well as multi-node Quantum networks with quantum memories.

We have already invited proposals from researchers in consortia mode in all the four areas. Currently, we are reviewing these proposals and we expect to form the hubs during the August timeframe.

In 2019, we launched the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS). Under this mission, we have set up 25 mission hubs, across various IITs and other institutions. These mission hubs have developed many state of the art technologies and products in areas such as cyber security, IoT, autonomous vehicles, drones, robotics and digital mining. The hubs are supporting more than 600 startups. These hubs have been perfect examples of translational research with each hub having significant autonomy while operating as a section 8 company.

Apart from these two missions, we are supporting R&D in climate change, clean energy and sustainable technologies. The two missions of DST - National Mission for Sustaining the Himalayan Ecosystem (NMSHE) and National Mission on Strategic Knowledge for Climate Change (NMSKCC) - have led to significant progress by supporting 19 Centres of Excellence (CoEs) and 37 major R&D programs over the last several years.

Missions in critical areas of technology are also being launched by other ministries. For instance, the IndiaAI mission is being launched by the Ministry of Electronics and Information Technology (MeitY). MeitY has also launched the India Semiconductor Mission that would also fund R&D in semiconductors. The Ministry of New and Renewable Energy has launched the National Hydrogen Mission which also has an R & D programme.

Technological evolution is happening at such a fast pace that it is difficult to predict the direction that the emerging technologies will take. How do you decide which technologies we should focus on?

We prioritize the research areas based on advances in various technology sectors and our national priorities and requirements. The research can take two broad directions. It can focus on technology innovations with translational research, or it can focus on basic research in sciences and engineering that can lead to discoveries and innovations having long term impact.

Apart from translational research, we need to put significant resources into basic research as well since it can lead to development of future technologies. For example, the evolution of Quantum technology today is based on principles developed several years back. The Department of Science & Technology places emphasis on both–translational research having immediate commercial benefits and basic sciences which advances the global body of knowledge that can lead to technology development in the years to come.

You talked about the commercialization of the research that is being done in India’s institutions. What steps can the government take to narrow the distance between the lab and the market?

Industry-academia partnership is key to the commercialization of the research being done in the labs. The innovation or technology developed in the lab needs to be transferred to industry for the development of products that can be commercialized. Spinning-off as a startup is another way to commercialize the research.

With over 120,000 startups, our country has emerged as the third largest startup ecosystem in the world. For the startups to succeed, they need funding support including venture investment. The Department of Science and Technology has major programmes to support the startup ecosystem. Over the years, we have been instrumental in supporting more than 150 incubators across the country. Through our programmes like Nidhi Prayas and Nidhi Seed Support, we are enabling startups to conduct cutting edge research and develop new technologies. Over the years, we have supported more than 10,000 startups.

The rise of the startup ecosystem in the country has led to a significant narrowing of the gap between the laboratories and the market. However, startups in the DeepTech area need substantial patient capital as the gestation period of developing technology in emerging tech can be very long. We also need a greater degree of cooperation between academia, industry and startups. DST is taking many initiatives to facilitate such collaborations.

What are the technologies on which the nation should focus in the next ten years?

We must focus on technologies that have potential to be the significant drivers of economic growth in the coming years. These technologies include AI, semiconductors & electronics, quantum, clean energy & green hydrogen, advanced materials, biotechnology and biomanufacturing, medical devices & technologies. In recent years, we have made substantial progress in the area of 4G and 5G wireless systems. We are now poised to focus on developing 6G technologies.

In March, it was announced that the Patent Office had granted one lakh patents in one year. How do you see the economic implications of the rise in the number of patents being filed from India?

In recent years, resident patent filing has increased substantially. This demonstrates increasing focus on developing products based on innovative ideas. In order to become a product nation, our focus should be on IPR driven manufacturing. In some areas where technology evolutions are driven by global standards such as mobile communications, we need to focus on patents that are part of the global standards. Patents, especially standard essential patents, can have significant economic implications in a product nation. A greater focus by private companies on R&D can further boost the patent filing. Through private sector R&D investment, we can also enhance the IPR driven manufacturing ecosystem and create a substantial economic value.

13. Aurobindo, Dr Reddy's, Sun Pharma Recall Products in US

ET, 20 May 2024

Drugmakers Dr Reddy's Laboratories, Sun Pharma and Aurobindo Pharma are recalling products in the US market due to manufacturing issues, as per the latest Enforcement Report of the US Food and Drug Administration (USFDA).

IANS New Delhi, May 19 (IANS) Drug makers Dr Reddy's Laboratories, Sun Pharma and Aurobindo Pharma are recalling their products in the US due to manufacturing issues.

Dr Reddy's Laboratories is recalling close to 20,000 cartons of a medication used to control blood phenylalanine levels in adults and children. Princeton (New Jersey)-based Dr Reddy's Laboratories is recalling Javygtor (sapropterin dihydrochloride) Powder for Oral Solution (100mg) due to it being a “sub-potent drug”, USFDA stated.

The company is also recalling another lot of sapropterin dihydrochloride for the same reason, it added. The USFDA said the drug maker initiated the Class I recall in the US on April 8 this year.

As per the US health regulator, a Class I recall pertains to defective products that can cause serious health problems.

The USFDA said Sun Pharma is recalling 11,016 vials of Amphotericin B Liposome for Injection, used to treat fungal infections, in the US market.

The company's US-based arm initiated the Class II recall on April 19 this year due to "Out of specification for assay", the USFDA stated.

Similarly, "Aurobindo Pharma is recalling 13,605 bottles of Clorazepate Dipotassium Tablets (3.75 mg and 7.5 mg), used to treat anxiety, in the American market. The company's US-based arm is recalling the affected lot due to "Discoloration: Dotted and yellow spots on tablets", USFDA stated. The company initiated the Class II recall on April 24 this year.

The USFDA stated that another drug firm FDC Ltd is recalling 3,82,104 units of Timolol Maleate Ophthalmic Solution, used to treat glaucoma, in the American market.

14. Sustaining growth in semiconductors & electronics will be MeitY’s main thrust in the next 5 years: Secretary

ET Gov. 17, Jun. 2024

"At present our value addition in the mobiles manufactured in India is between 18% to 20%. Our intention is to push this value addition to 35% to 40%. This can happen only if we are able to encourage component manufacturers to set up their bases here. We intend to achieve this goal in the next few years": S. Krishnan, Secretary, MeitY.

“The growth in the electronics and semiconductor sectors has to be sustained. The immediate challenge in the next year or so will be to ensure that the manufacturing projects get completed on time and start delivering results.

“To fulfill the domestic demand and to grow semiconductor exports, the country will need two or three more fabs. In the area of electronics, the important goal will be to get more component manufacturers in the country. Another important goal for the next five years will be to ensure that the hardware manufacturing projects that have been launched start manufacturing devices for the domestic and overseas markets.”

This was stated by S. Krishnan, Secretary, Ministry of Electronics and Information Technology (MeitY), Government of India, in conversation with Anoop Verma, Editor (Desk), ETGovernment. In the interview that follows, Krishnan provides his assessment of the major goals that the Ministry will be pursuing in the next five years.

Edited excerpts:

The Ministry of Electronics and Information Technology (MeitY) has taken a number of landmark initiatives in the last five years. How do you see the key achievements of MeitY in the last five years?

The improvements in India’s abilities in the areas of semiconductor and electronics design and manufacturing is clearly the most significant achievement of the last five years. The semiconductor industry has now found a firm footing in India. There is significant expansion in electronics manufacturing leading to an exponential rise in electronics exports from India. In FY24, India’s electronics exports have surged to $29.12 billion.

The Global Capability Centres have also achieved significant success in attracting investments and facilitating exports. In the last five years, India has become the most preferred destination to set up such GCCs; the country is home to world’s 50% GCCs. There has also been a healthy flow of investments in engineering R&D centres. Lot of value-added jobs in electronics and software sectors have been created in the country.

Then there is the area of cyber security in which significant achievements have been made in the last five years. With an eye on making the Internet a safer place, there has been a noteworthy improvement in adherence to norms. The awareness of cyber security issues has grown and so has the capacity to handle these issues.

In the next five years what will be the major areas in which MeitY will focus?

The growth in the electronics and semiconductor sectors has to be sustained. The immediate challenge in the next year or so will be to ensure that the manufacturing projects get completed on time and start delivering results. To fulfill the domestic demand and to grow semiconductor exports, the country will need two or three more fabs. In the area of electronics, the important goal will be to get more component manufacturers in the country. Another important goal for the next five years will be to ensure that the hardware manufacturing projects that have been launched start manufacturing devices for the domestic and overseas markets.

What kind of growth do you expect in the AI space in the next five years?

Emerging technologies like AI present India with a huge opportunity. AI can be used to enhance the productivity of various sectors and this will make a marked difference in the rate at which the economy grows. Advancements in AI, coupled with the rollout of 5G networks, industrial IoT and other technologies, will lead to substantial increases in productivity. This will take India forward.

The AI space needs substantial new investments to achieve its full potential. The private sector might not be able to make such investments. Is the government planning any new investments in the sector?

The government has already launched the IndiaAI Mission, which is expected to bolster India’s AI ecosystem by empowering AI startups and improving access to infrastructure. One of the thrust areas for IndiaAI Mission is to develop advanced and scalable AI computing infrastructure by deploying over 10,000 Graphics Processing Units (GPUs).

"One of the thrust areas for IndiaAI Mission is to develop advanced and scalable AI computing infrastructure by deploying over 10,000 Graphics Processing Units (GPUs)."

The total outlay for IndiaAI mission is ₹10,300 crore. This is a significant amount. In addition to this, several of the state governments are going to make their own investments in the AI space and the private sector is also expected to make significant investments. Success of the IndiaAI mission is important, both in terms of providing more capacity for AI compute, which is an important element, and developing advanced applications across a range of sectors.

The IndiaAI mission has significant focus on facilitating academic and industry collaborations and building avenues for advanced research in AI. The IndiaAI Innovation Centre (IAIC) is being envisaged as a leading academic institution where top research talent will engage in cutting edge research on AI. The IAIC will spearhead development of foundational models, with a specific emphasis on Large Multimodal Models (LMMs) and domain-specific models, leveraging edge and distributed computing for optimal efficiency.

One whole pillar in the IndiaAI mission is devoted to ensuring that the AI models and products being deployed in the country are safe and trusted. We are looking at various technical and other interventions that will make AI safe and trusted. We are also examining regulations that will ensure that the researchers develop AI systems that are suitable for India’s needs.

India does not have its own standards for electronics for ensuring that the products made in India adhere to a certain benchmark in quality and interoperability. Is the government planning initiatives for setting standards?

The Ministry is getting involved in the process of setting standards. In the electronics manufacturing sector the standards organization is BIS. They take technical inputs from our side. We are working closely with BIS and we are also taking the inputs from relevant stakeholders, including the various international committees, to make sure that the standards not only serve India’s requirements but also ensure that the electronics products manufactured in the country meet the global standards.

You pointed out that the country has made a lot of progress in semiconductor and electronics manufacturing in the last few years. But we are dependent on Taiwan, China and a few other countries for a significant part of our chip and electronics requirements. What initiatives is the government planning to attract more investments in the sector?

Major plants are being set up by Micron, TSMC and the Tatas. There are other applicants who want to set up their manufacturing plants in India. We will clear their applications in the days to come. India not being able to catch up with Taiwan is not the core issue. There are close to 200 countries in the world. How many of these countries are into semiconductor and electronics manufacturing? Their number is between 5 to 10. We will soon be in the select group of 5 to 10 countries which possess the capacity to manufacture semiconductors and electronics. Certainly, we are behind Taiwan but we are far ahead of over 190 countries. However, being ahead of close to 190 countries does not give us comfort. We have to continue to push forward. Semiconductors and electronics manufacturing is a big priority for the country.

There has been a major increase in mobile phone production in the country. But much of the components that go into mobile manufacturing come from outside. What can be done to increase the percentage of Indian components in domestically manufactured devices?

The manufacturing of electronics products requires cutting edge technologies and sophisticated facilities. All of these technologies and facilities cannot be set up in a single country. Take the case of the world’s largest mobile phone manufacturer, China. This country manufactures about 60% of the world’s electronics products, but the Chinese value addition in these products is between 40% to 60%. Rest of the components are imported. At present our value addition in the mobiles manufactured in India is between 18% to 20%. Our intention is to push this value addition to 35% to 40%. This can happen only if we are able to encourage component manufacturers to set up their bases here. We intend to achieve this goal in the next few years.

How do you see the growth in the electronics and software industries in the next five years?

Currently India’s electronics manufacturing is over $150 billion. The software production is close to $250 billion. We are expecting that by the end of this decade, electronics manufacturing will grow by several times and surpass $500 billion. The software production will at least double and it too will surpass $500 billion. Electronics manufacturing is on its way to becoming one of the largest sectors in India. Both electronics manufacturing and software production are important not only in terms of the quality of jobs that they create but also strategically. It is important for us to reduce our dependence on other countries in the area of electronics. Some degree of self-reliance is necessary.

15. Standardization: Inclusive, dynamic & innovative ecosystem is critical for electronics sector

ET Gov. 11 Jun. 2024

As we navigate the complexities of standardization, we also need to factor the pitfalls of protectionism.

Standardization in manufacturing, often viewed peripherally is a criticality, more so in terms of electronic components.

It is a pivotal issue for development, acceptance of products and scales of production. It caters to quality aspects, inventory management, interchangeability, regulation of myriad attributes, engineering standards and lifecycle support. Standardization is a critical factor in the global electronics industry, ensuring that products meet certain benchmarks for quality and interoperability.

For India’s burgeoning electronics sector, which has set course to become a significant player in the electronics export market, adopting standards is instrumental in harmonizing products and processes across borders. As India seeks to solidify its foothold in the global electronics market, it is imperative to accrue best practices in standardization and formulation of the same.

Historically, standardization has been mentioned in ancient religious texts but closer to the timeline, the requirement of standards was felt in the late 18th/ early 19th century in alignment to the Industrial Revolution, which enabled the machine age. Post World War -II, where a need for standardization was assessed across a spectrum of conflict and products, International Organization for standardization (ISO) came into being in 1947, albeit in the same timeline of India’s independence.

The organization’s abbreviated name ISO derives from the ancient Greek word isos, meaning equal. The main difference between the international and national standards is perhaps in the scope, with the former looking at consistency and the latter being need specific.

Europe’s approach to standardization is characterized by a harmonized system underpinned by legislation and market needs. The European Committee for Standardization (CEN) and the European Committee for Electrotechnical Standardization (CENELEC) play pivotal roles in this process, aligning with international standards from the IEC and ISO.

This integration facilitates the free movement of goods across member states, a cornerstone of the European Union's trade philosophy. Europe’s focus on innovation and sustainability, as seen in initiatives like the European Green Deal and the Digital Single Market, shapes the development of new standards that cater to a greener and more digitally integrated future.

The United States seemingly adopts a more industry-driven and voluntary approach. The American National Standards Institute (ANSI) coordinates the development of standards, representing US interests in global standard-setting activities. The National Institute of Standards and Technology (NIST) complements these efforts, especially in technology and cybersecurity domains.

Unlike Europe, the US does not mandate the adoption of these standards through legislation, reflecting a belief in the power of industry-led innovation.

Bureau of Indian Standards (BIS) is the National Standards Body of India which came into being by BIS Act 2016. In addition, there is Telecom Engineering Centre (TEC) and Telecom Standards Development Society of India (TSDSI) who are structured for this domain, as well.

BIS which was earlier known as ISI (Indian Standards Institution) is a very structured organization with a large footprint and a number of public and empaneled private sector testing laboratories. There could be a case of enhancing the footprint of BIS further in terms of reach, augmenting specialized technical manpower, enhanced industry connect and training aspects. The Indian National Strategy for Standardization (INSS) was launched in 2018, giving a clear direction to this endeavor.

The present context necessitates a case for reconfiguration of thinking, policies and approach with the advent of 6G, AI, ultra-fast processing chips and associated futuristic technologies. These technologies would necessitate technology juxtaposed with legal expertise to define standards of the future with a multi stakeholder dynamic, perhaps involving inter-ministerial deliberations.

India's journey towards integrating into the global value chains of electronics requires a standardization ecosystem which is inclusive, forward-looking, and conducive to innovation. This assumes greater proportion with the Government’s focus on ‘Product Centricity’ and a vibrant third largest startup ecosystem in the world.

As we navigate the complexities of standardization, we also need to factor the pitfalls of protectionism. The goal is to foster a policy framework where standards serve as enablers of trade and innovation, rather than barriers. By doing so, India will not only enhance the quality and safety of its electronic products but also assert its position in the international market.

The industry has to follow foreign standards in most cases due to limited home-grown standards which need to be debated and formalized. The same needs to be configured but is a specialized and a time-consuming process.

The accrued standards can then be showcased regionally and thereafter aligned globally. Electronics / ICT push for Indian standards for Indian use as possible at least for the present needs to be formulated with intensive deliberations, as electronics global value chains is a global concept and causing any hardships for MSMEs and thereby costlier products for consumers could be counterproductive. Integrating/ bringing in our standards in line with global standards is the key. This will give an inherent flexibility to the industry and the scale of products being developed in the future.

Embracing global standards does not mean a wholesome adoption of Western practices. Instead, it translates as a nuanced understanding of the underlying principles that make these systems effective. Public-private partnerships, active participation in international standard-setting bodies and a focus on innovation and sustainability are the pillars upon which India can build its standardization framework.

It is indeed true that “we need to fight India’s wars with Indian solutions”.

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

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

16. Global Capability Centres: Govt policies to promote operational excellence, product development, innovation

ET, 21 May 2024

What are the areas in which the Government of India must take new initiatives for supporting the GCCs?

India continues to remain the destination of choice as global organizations expand. Hence, the government must continue supporting the expansion of GCCs. Around 25% of Fortune 500 companies and around 15% of Forbes Global 2000 companies have set up their bases in India. While the number is expected to increase, GCCs still require government support in areas like infrastructure, skill development, taxation policies, and the building of an innovative ecosystem.

Today, most GCCs are based out of Bengaluru, Mumbai, Delhi-NCR and Hyderabad. With the infrastructure of these cities nearing saturation, it is time to explore developing Tier 2 cities into new GCC hubs. Spreading footprints in Tier 2 cities will ensure an abundant and diverse talent pool at potentially reduced costs. Governments can incentivize organizations to locate their GCCs in Tier-2 cities through favorable policies and schemes.

What made Allstate opt for India as their GCC center?

India's rich talent pool and vibrant innovation ecosystem have emerged as some of the driving forces behind this strategic move. India is an important market owing to the country’s skilled and diverse workforce. This geographical strategy contributes significantly to our innovation and development efforts.

With GCCs in India, Allstate gained access to a vast reservoir of expertise, fueling its innovation and development endeavors. The country's dynamic market environment enables the company to stay ahead of the curve, tapping into emerging trends and cutting-edge technologies. The steadfast dedication, innovation mindset, and technological prowess of Indian talent have been instrumental in delivering crucial operational and technological support to Allstate's customers globally.

With the increasing demand for advanced technology and financial services, we expanded our operations in Bangalore and Pune to harness the vast potential of Indian talent.

How is the Indian GCC model changing from execution-driven to taking ownership?

The Indian GCC landscape is witnessing a transformation from mere execution hubs to strategic ownership centers. Once confined to siloed functions like finance or technology, GCCs are now evolving into microcosms integrated with all business units across the organization.

This transition is driven by elevated sponsorship CEOs, ensuring strategic alignment and seamless collaboration between GCCs and parent companies. GCCs are taking end-to-end ownership of critical processes, products, and services, fostering innovation, optimization, and heightened value delivery. Moreover, GCCs are investing in talent development, upskilling initiatives, and nurturing a culture of continuous learning to cultivate an empowered and accountable workforce.

17. National Awards Teachers Higher Education: Portal launched for nomination of HEI teachers for national awards

ET Gov. 23 May, 2024

The selected awardees will be felicitated on 5th September (Teachers’ Day) to commemorate the birth anniversary of Dr Sarvepalli Radhakrishnan, former President of India and a remarkable teacher.

Secretary, Higher Education, Sanjay Murthy along with Chairman, AICTE, TG Sitharam, on Tuesday launched the portal for nominations for National Awards to Teachers (Higher Education) 2024.

The Department of Higher Education, Ministry of Education, has also issued guidelines for the submission of nominations. The awards will be conferred on the exemplary teachers/ faculty members of technical and non-technical higher education institutions and teachers of polytechnic institutions.

There are three sub-categories under the first category based on the broad disciplines namely Engineering & Technology, Architecture; Pure Sciences including Mathematics, Physical Sciences, Biological Sciences, Chemical Sciences, Medicine, Pharmacy; and Arts and Social Sciences, Humanities, Languages, Legal Studies, Commerce, and Management.

The last date for submission of nominations is 20 June 2024. The selected awardees will be felicitated on 5th September (Teachers’ Day) to commemorate the birth anniversary of Dr Sarvepalli Radhakrishnan, former President of India and a remarkable teacher.

Eligibility

The award is open to all the faculty members of colleges/ universities/ higher educational institutions/ polytechnics in India, satisfying the following conditions:

The Nominee should be a regular faculty member, should have at least five years of full-time teaching experience at the undergraduate and/or post-graduate level, should not be above 55 years of age as on the last date of receiving application for the awards.

Vice Chancellor/Director/Principal (regular or officiating) are not eligible to apply. However, individuals who have held such positions earlier, but are below 55 years of age and still in active service are eligible.

Nomination Procedure

Self-nomination (Singular basis)

Former or existing Vice-Chancellor/Director/Principal/Faculty Member/Colleague of the same University/Institute/College/Polytechnic, where the nominee holds regular employment. Earlier nominee / nomination is eligible for re-nomination,

The purpose of the National Award to Teachers 2024 in higher education institutions is to recognise the distinctive contributions of some of the finest faculty members in the country and honor them for their dedication and hard work, particularly in teaching and pedagogy, and its impact which have not only improved the quality of higher education but also enriched the lives of their students. The award seeks to recognise and honor the unique and path-breaking achievements of faculty members in teaching-learning, community outreach, institutional service, research, and novelty of work in the field of higher education.

18. Rising Employee Productivity to Boost IT Cos in Hard Times

ET, 7 Jun. 2024, IANS

Amid revenue deceleration, shrinking margins and lower headcount, a silver lining for the top tier IT exporters is the rising employee productivity aided by streamlining of human resources through meticulous bench management. In FY24, the top five companies reported a record high aggregate revenue per employee of $51,117. It grew by 6.5% year-on-year, the highest in six years.

The sample includes Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, and Tech Mahindra. The analysis considers the total headcount reported by companies across all functions. In addition, annual dollar denominated revenue is considered to exclude the effect of rupee-dollar fluctuations as foreign exchange hedging strategies would be different for different companies.

At the company level, Infosys reported the highest year-on-year increase of 10.3% in revenue per employee at $58,510.9, which was also the highest among top peers. For TCS, the country’s largest IT exporter, revenue per employee rose by 6.4% to $48,342.1.

In FY24, toplines of IT companies was under pressure due to slower ramp-up of large deals as clients across the major markets of the US and Europe delayed decisions amid economic uncertainties. The sample’s revenue grew by 2% in FY24, the slowest since FY21 when the top line had risen by just over 1.7%, affected by the pandemic. Revenue growth in FY23 was 9.5% on top of a sharp recovery seen in FY22 when it clocked 18.1% growth.

To counter the slow demand, software exporters focused on headcount rationalisation and improving employee utilisation. A moderating trend in the attrition rate after a sharp escalation in FY21 and FY22 helped IT companies to go slow on hiring during FY24.

For the top IT pack, aggregate headcount fell by 67,518 in FY24 to 15.3 lakh. It was the first drop in at least 15 years. The sample had added 83,906 employees in FY23 on top of a record addition of 2.7 lakh in the previous year.

An efficient headcount management resulted in improving the employee utilisation levels beyond 80%. For instance, in the case of Infosys, it increased to 82% in the March 2024 quarter from 76.9% in the year-ago quarter. For Wipro, it expanded to 84.8% from 81.2% excluding trainees.

19. Indian GCC Boom Lights up Prospects of IT Firms Too

ET, 7 Jun. 2024

Indian IT firms are gaining from the country’s emergence as a hub of global capability centres (GCCs), providing services, setting up projects, as well as partnering and even acquiring such centres.

A host of Indian firms including GlobalLogic, L&T Technology Services (LTTS), KPIT and Happiest Minds are getting greater revenue momentum from GCCs in the country, while a few companies including LTTS are helping their global clients set up GCCs in India.

Others like Infosys, TCS, Wipro and Happiest Minds are also seeing opportunities in acquiring these centres to deepen their relationship with the parent clients, industry executives said.

With the number of GCCs increasing, IT engineering firm GlobalLogic’s GCC clients more than doubled last fiscal to 36 from 15 while its GCC business grew 90%, GlobalLogic CEO Nitish Banga told ET.

Happiest Minds saw its India revenue grow to 16.3% in FY24 from 14.1% in FY22 partly due to increased GCC business, an IT expert said. “From inception, we have been working closely with GCCs in India and (has been) leveraging this understanding and relationships to serve the global needs of our customers,” said Joseph Anantharaju, executive vice-chairman at Happiest Minds.

He said the firm delivers innovation and cutting-edge R&D across disruptive tech areas such as generative AI, IoT, blockchain and cybersecurity for its global clients.

LTTS recently won a deal from a global agricultural and construction equipment maker to help set up a 100-member offshore development centre in India.

An LTTS spokesperson said the engineering, research and development (ER&D) company is providing plant engineering, product development and digital manufacturing services to many GCCs. It is also helping semiconductor and telecom infra companies to help establish centres of excellence, the person said.

Similarly, Tata Technologies in April this year signed an agreement with BMW to form a joint venture to set up a software and IT development hub in India for the German luxury carmaker.

“As GCCs evolve, they are increasingly adopting a hybrid approach, combining inhouse teams along with third-party service providers,” said Vikram Ahuja, cofounder of business consulting firm ANSR. Such strategic joint ventures are often made in a 70-30 ratio, he said.

20. Radisson Planning More Hotels in India with Focus on Smaller Cities

ET, 27 May 2024

Radisson Hotel Group, the second biggest international chain in India by hotel network and room inventory, plans to open a new hotel every 20 days in the country this year, Nikhil Sharma, Radisson’s new managing director and area senior vice-president for South Asia told ET.

He said the chain, which aims to operate a hotel at every two hours driving distance across India, is also building its presence in religious destinations and will open the first globally branded hotels in locations such as Vrindavan, Ujjain and Guruvayur.

“People are visiting religious destinations far more than pre-Covid times. We were the first to launch a branded hotel in Ayodhya before the temple inauguration which clocked an average tariff of ₹1.15 lakh in the first month. It is still sold out on most days and the average tariff is ₹30,000 now,” said Sharma. The chain opened the 212-key Radisson Collection hotel in Srinagar last month — -the largest hotel property in the Jammu and Kashmir region.

The chain has over 180 hotels in operation and in pipeline across over 70 locations. New hotels are slated to open in Saputara in Gujarat, Dhanbad, Nainital and Jamshedpur. Radisson’s recent signings include new hotel deals for Delhi, Bengaluru, Raipur, Sonamarg, Sonipat, Dera Bassi, Kevadia, Jhansi, Gopalpur and Vizag. About 50% of the chain’s current portfolio of operating hotels lies in tier-II, tier-III and tier-IV locations.

“India lies in Bharat and it’s not the metros. So, if anyone has to grow in this country, they have to be pan national and they have to be in the smaller cities and that’s where our focus is, to grow, and eventually be the largest international operator,” said Sharma. “It’s time to look beyond just tier-II and tier-III locations because the market is ready. The internet penetration is there, the spending capacity is there. Indians are ready for the international flavour in other locations too. We want to be the first mover from an international perspective to penetrate deeper into the country,” he added. Sharma said the chain will hire 3,000 people this year.

He said India’s economic growth and increase in domestic tourism, rise of the Indian middle class, increase in airport and rail network and improvement in road infrastructure are among factors influencing Radisson’s decision to expand its hotel network.

“All parameters are pointing in the right direction that India is a sunshine country and the first thing that socially, human beings want to do is travel. We want to make sure we cater to those needs,” he said. “It is a growth market. Globally, there are 3 or 4 markets that are growing besides India such as Saudi Arabia and Indonesia. If we have a strong government this year, you will see more aggressive growth,” he added.

India and the World

21. Trent Plans Global Retail Push After Acing it in India

ET, 3 June 2024

Agencies

Riding the wave of its success in the domestic retail market, Noel Tata-led Trent is exploring opportunities to set up its retail formats outside Indian shores, beginning with a flagship store in Dubai, said people in the know. This move comes as Zudio, one of its flagship brands, surpasses the ₹7,000-crore revenue mark in India.

Trent had earlier deferred its global ambitions to consolidate domestic operations. Now, with a robust and profitable business model in place, the traditionally conservative retailer is now seeking to tap the substantial Indian diaspora overseas, becoming the first retailer to do so, the people said. It may consider an international ally for possible partnerships, though that is unconfirmed. Chief executive officer P Venkatesalu said the company, as previously, continues to explore possibilities. “It is still early to comment on plans,” he added.

According to industry watchers, Trent has cracked a sustainable and profitable business model and has now gained the confidence to scale up abroad.

Trent’s consolidated revenue has increased at a five-year compound annual growth rate of 45%, reaffirming its growth strategy driven by agile on-ground execution. Amid an apparel slowdown, Trent stands out as an anomaly, consistently delivering positive surprises in both revenue and profit margin.

The company reported another strong growth year in FY24, with net sales surging 50% to ₹12,375 crore and net profit rising nearly fourfold to ₹1,477 crore. This robust performance was driven by a combination of strong like-for-like growth, aggressive expansion of Zudio stores and significant traction in emerging categories such as beauty and personal care, innerwear, and footwear.

In the March 2024 quarter, its fashion apparel brand Westside unit added 12 stores, bringing the total store count to 232, while value fashion concept Zudio opened 86 new stores, taking its total count to 545.

Shares of Trent gained 192% in the last one year and 305% over two years, compared with gains of 10% and 18% in the Sensex during the same periods.

Trent was the top performer among all the Tata Group stocks during these periods.

The only retailer pursuing an unconventional ‘own brands’ strategy, Trent had accelerated the expansion of its key formats — Westside, Zudio and Star Bazaar.

“Westside and Zudio are like two siblings playing in the fashion space. They vary on product, design, fabric, etc., but are still relevant at different price points. Moreover, the learnings from Westside helped build a strong Zudio model and the backend integration of the two brands is helping both businesses deliver synergistic growth,” Venkatesalu told ET.

Trent's brands are not sold on any other ecommerce websites except Tata platforms (Tata Neu and TataCliq). The Zudio format today contributes as much as 30% to total revenue compared with only 8% a few years back.

The retailer is applying the same strategy at the Star Bazaar business in the food and grocery space and is witnessing some very strong customer traction.

It has consistently delivered robust financial results, boasting 31% and 26% compound annual growth rates (CAGR) in revenue and profit, respectively, over the past five years. Trent is now seen by its management team as a platform that allows to originate, incubate and scale a portfolio of growth engines.

22. NSA Jake Sullivan to visit New Delhi to engage new govt on shared India-US priorities: White House

ET Gov. 7 Jun. 2024

The White House has said US National Security Advisor Jake Sullivan is scheduled to visit India to engage the new government in New Delhi on shared US-India priorities as Narendra Modi prepares to take oath as prime minister for a third consecutive term. Sullivan's visit was discussed during the phone call President Joe Biden made to PM Modi on Wednesday to congratulate him on his re-election.

"President Joseph R. Biden, Jr. spoke today with Prime Minister Narendra Modi of India to congratulate him and the National Democratic Alliance on their historic victory in India's general election," the White House said in a readout of the call.

Biden also commended the people of India for participating in the elections, with nearly 650 million going to the polls to vote, the readout said.

The two leaders emphasised their commitment to deepening the US-India Comprehensive and Global Strategic Partnership and to advancing their shared vision of a free, open and prosperous Indo-Pacific region, it said.

"The two leaders also discussed National Security Advisor Jake Sullivan's upcoming travel to New Delhi to engage the new government on shared US-India priorities, including the trusted, strategic technology partnership," the White House said.

Sullivan's travel dates to India have not been announced yet, but is expected to be within days of Modi being sworn in for the third time.

In a separate statement, Senator Ben Cardin, Chair of the Senate Foreign Relations Committee, congratulated the people of India for concluding their elections, with votes cast at over a million polling stations throughout the country over the course of just a few weeks' time.

"The people of India have again demonstrated their commitment to the democratic process, casting their votes in spite of this year's intense heatwaves," he said.

"The US-India partnership is, and will remain, important for regional and global prosperity for many years to come. I look forward to strengthening this relationship, and believe it will endure so long as it is founded in mutual respect and trust, and a commitment to democratic values," he said.

"As political leaders begin to form a new government, I reaffirm my support for the people of India in their continued efforts to strengthen justice and the rule of law, to enhance transparent governance, and to safeguard human rights," Cardin said.

Chairman emeritus of Cisco, John Chambers, in a LinkedIn post, congratulated Modi on his third term in office.

"When I reflect back on my first meeting with PM Modi, I recall being struck right away with his humble yet courageous spirit and also his bold vision for India. His Digital India initiative is one of the best I have ever seen, and recent major partnerships in defence, technology and more are a clear indicator of the country's growth trajectory," he said.

"As I said at the Kennedy Center last June, I trust PM Modi with my life and I believe India will become the #1 GDP in the world, in large part because of his efforts. I look forward to collaborating further to make the US-India partnership the strongest in the world as the Chairman of the US-India Strategic Partnership Forum. Keep an eye on India - I, for one, will continue to be the biggest bull on the country under his leadership," Chambers said.

23. Knowledge & technology led agriculture: Increasing production, democratising access to food

ET Gov. 13 June 2024

New age agriculture needs qualified/trained/skilled youths having ability to adopt the latest technologies to modernize the agriculture sector.

Extremely lucky are those who were born in India during and after the realization of the agricultural revolution that began in late 1960s and people started having easy access to food.

For this generation, the struggle for food faced by people in the pre-green revolution era is a history. People had to stand in long queues for hours to get small quantities of low quality food grains and sugar provided under Public Law 480 (PL480) scheme. This Law was enacted by the US Congress in 1954 which aimed at providing economic assistance by providing surplus agricultural commodities to countries in need, including India.

This assistance saved a large number of lives in India during the 1950s-60s. People unaware of hardships and success in food production do not appreciate, recognize and admire the agriculture sector. Their perception is that money is the master and food can be purchased. They may be right to some extent but they must understand that this theory does not work all the time.

Royal Commission on Agriculture Report 1928 cited a classic case of deaths due to hunger during the famine 1868-69. At Ajmer, Rajasthan, people having money in their hands were starving to death because food availability was alarmingly low and the distribution system was also very poor. Several such examples can be traced from the past and also in the present era.

Historical evidence shows that to avoid aforesaid situations most rulers kept their focus on protection of water, enhancing food production and maintenance of biodiversity in order to keep people and animals healthy and happy.

They also tried to protect air quality by encouraging diversified plantation and cropping systems. Legendary poet (Adi Kavi) Maharishi Valmik in his sacred scripture “Shrimadvalmikiy Ramayan” cited an intimate conversation between “Ram & Bharat” during their first meeting at “Chitrakut Parvat” where Ram had his stay in exile.

While enquiring about the welfare of the people belonging to different strata living in the kingdom, “Ram” also enquired from his younger brother “Bharat” about farmers and stakeholders and suggested him to take due care of soldiers and farmers. It shows that from the time immemorial agriculture continued to be an important part of human life.

Still agriculture is an important economic activity in India which is source of employment for 45- 50% of population and contributes around 18% of India’s gross domestic product (GDP). The journey of this sector was never easy as it was just like travelling on bumpy and potholed roads.

During the long journey from the age old subsistence & traditional agriculture to science & technology led commercial agriculture, farmers faced frequent draughts & floods, vagaries of monsoon, outbreaks of diseases & pests, scanty irrigation facilities, small holdings, near absence of organised markets, scanty logistics & transport support, exploitation by middlemen etc.

Nevertheless, farmers continued their journey and successfully tried to ensure availability of food to the ever growing population. In this journey the slogan “Jai Jawan, Jai Kisan” invoked in 1965 by the then Prime Minister Sri Lal Bahadur Shastri which had great lineage clearly linking us with Ramayan period, played pivotal role in triggering enthusiasm amongst farmers and soldiers. This slogan, in fact, energised and excited soldiers and farmers to such a level that they stood mentally strong while facing odds and flurries of problems. Fortunately, the slogan helped in turning traditional agriculture towards progressive agriculture.

Farmers of independent India started thinking to become self-reliant and a growing paradigm shift in farmers’ approach towards adoption of improved technologies became visible. Farmers developed strong belief in agricultural scientists & field functionaries and worked aggressively hand-in-hand with agricultural institutions/scientists.

The efforts of farmers and scientists got timely support from the government through its farmers’ friendly policies. Ultimately, all these collaborative efforts culminated into green revolution followed by white, yellow and blue revolutions which helped in strengthened food security of the country and enhanced nutritional security also.

Our country produced record food grains, pulses and oilseeds at 3305, 275 and 410 lakh tonnes, respectively during 2022-23. Highly satisfying production has been realised in cotton, milk, fish, sugarcane production too, whereas in 1950, India produced only 509 lakh tons of food grains. Not only this, India sustained agricultural revolution for long and has become exporter of several agriculture products including wheat, rice, sugar, onion, potato, tea, animal products, vegetables and fruits.

Various estimates showed that the population of India, which was nearly 36 crore only in the year1950, would reach to 165 crores by the year 2047 when we complete 100 years of Independence. Obviously, the explosion of population in the country is continuously challenging agriculture for maintaining food and nutritional security.

In the recent past, NITI AYOG’s Working Group came out with a very encouraging report which concluded that “if the cropping intensity and potential yields are realized, the food production in India will be more than the demand by 2047”. These accomplishments generated greater confidence amongst farmers, agriculture scientists and government.

Nevertheless, agriculture is prone to natural calamities & mismanagement. Under such situations food crises can knock on the doors in any part of the country at any time. Therefore, we will have to make our agriculture sector more knowledge and technology sensitive. The Royal Commission on Agriculture Report, 1928, revealed the conditions of Indian farmers during colonial regime. It described farmers’ economy as “the Indian peasant is born in debt, lives in debt and bequeaths the indebtedness to his successors”.

Although a lot of change has been brought in farmers’ economy after independence, yet a lot has to be done. This report still has its relevance, though a few up-dated and time appropriate reports have been submitted by committees constituted by the government of India. Amongst them, the much talked about report is MS Swaminathan Committee Report 2006 followed by reports submitted by RS Paroda Committee 2019, Ashok Dalwai Committee 2017 and LK Jha committee1965.

Equally important reports are on Agreement on Agriculture under WTO, UN Reports on Climate Change and UN’s Sustainable Development Goals 2015. According to the report on climate change, the continued rising concentrations of greenhouse gases fuelled record land and ocean temperatures and emphasized the need for much more ambitious climate action to try to limit global temperature rise to no more than 1.5°C above the pre-industrial era. The UN Environmental Programme outlines various measures to mitigate the impact of climate change. All the aforesaid reports are rich reference resources and it is desperately needed to spread the knowledge and information contained therein amongst the stakeholder of the agriculture sector.

Surprisingly, a very small portion of these documents seldom become a part of discussion amongst agriculture graduates, extension functionaries and farmers organizations and therefore, our farmers and stakeholders have alarmingly low knowledge about emerging issues and probable solutions conversed in these reports. This low level of awareness has harmed our agriculture a lot. For example, the WTO came into existence in 1995. Our farmers and stakeholders are still little aware of demand, quality issues, branding and supply chain management. Therefore, our agriculture is performing much below its capacity in world agri-products trade.

Statistics produced by FAOSTAT indicate that despite all the changes and regardless of its fast-growing population and economy, India remains one of the most vegetarian countries in the world. Keeping this in view, the Indian agriculture sector has to prepare itself to meet the domestic demand and also it has to redefine its approach to harvest the opportunities of the international market.

Though, ICAR Institutions and State Agriculture Universities are concertedly developing new technologies and innovating on existing ones to usher in another agricultural revolution that is economically and socially viable and time appropriate, the sector requires infusion of higher participation of private sector. Most of the experts committees have also recommended the dire need of private sector participation in the agriculture sector particularly in the areas of modern storage facilities development and processing & supply chain establishment / management.

Private sector has its expertise in many areas and therefore its participation would be of great help in making this sector globally competitive. Expert Committees have also suggested taking due measures for empowering small and marginal farmers who constitute 86% of the total farmers in India. All these farmers and rural youth need to be sensitised about experts’ reports to develop synergy in thinking amongst farmers, planners and scientists to mitigate emerging challenges in the agriculture sector.

Retaining youth in agriculture has become a daunting task. Various reports suggest that migration of rural youth to cities is around 45% in the country. According to the World Bank estimates, half of the Indian population would be urban by the year 2050. It is estimated that percentage of agricultural workers in total work-force would drop to 25.7% by 2050 from 58.2% in 2001. This situation would exacerbate load on ageing farming population. Creation of an efficient economic model in the villages is crucial to catalyse and energize youth to become entrepreneurs in rural areas. A study conducted at ICRISAT, Hyderabad in three villages reveals that without detailed studies to understand the aspirations of rural youth alongside state and district-level and up-skilling them, the situation may not improve.

New age agriculture needs qualified/trained/skilled youths having ability to adopt latest technologies to modernize agriculture sector. In developed countries, skilled work-force is in the range of 60% to 90% of the total workforce, whereas in India, the skilled workforce is as low as 5% (20-24 years age group). This situation has to be radically improved for better use of this rural work-force to improve the rural and urban economy. Knowledge creates wisdom and that would help in better management of resources and initiating climate resilient research.

In addition, it will help in making an efficient technology transfer system as well. Knowledge and technology led agriculture will certainly transform rural economy and that, ultimately, would help in making “Vikasit Bharat”.

(The author is Professor (Retd), Haryana Agriculture University, and Ex. Consultant Haryana Farmers’ Commission; Views are personal)

24. From local talent to global force: Bridging the skills gap for India's overseas workforce

ET Gov. 13 Jun. 2024

The future of work demands continuous learning and adaptability.

Indian professionals are making their mark across industries around the world. In 2023, remittances sent back home by these workers reached a staggering $125 billion (World Bank, 2023), an impressive 12.3% surge from 2022. Translating to 3.4% of India's GDP, these remittances highlight the significant financial contribution of the overseas workforce.

However, a hidden challenge lurks beneath this success story. A skills mismatch hinders career advancement and earning potential. While India boasts a robust skilling ecosystem churning out millions of skilled workers each year, the traditional focus often leans towards theoretical knowledge rather than the practical application and industry-specific skills craved by global employers. This gap leaves some Indian workers unprepared for the fast-paced demands of international companies.

Data from the World Bank (2023) reveals that India is the world's leading recipient of remittances, followed by Mexico and China. In 2023, India received a significant portion (66%) of all remittances flowing to South Asia, exceeding the previous year's figure of 63%. Notably, inward remittances to India have witnessed a substantial increase (78.5%) over the past decade.

One of the key factors contributing to rising remittances to India is declining inflation and strong labour markets in high-income source countries, including the United States, United Kingdom, and Singapore. These three countries account for 36% of total remittance flows to India. Another factor is the higher inflows from the Gulf Cooperation Council (GCC), especially the United Arab Emirates, which accounts for 18% of India's total remittances, the second-largest source after the US.

There's been a gradual shift in both the destinations Indian migrants choose and the types of skills they possess. Traditionally, Indian migrants in GCC countries often found themselves in low-skilled, informal work. This trend is changing, with a growing number of migrants landing high-skilled positions in high-income nations like the US, UK, and East Asia (including Singapore, Japan, Australia, and New Zealand). As new destinations in Europe emerge for Indian workers, a more comprehensive understanding of the specific skill requirements in each region becomes crucial.

The Indian government is trying to address the skills gap through various initiatives. For instance, NSDC International collaborates with many countries to assess job demand. Similarly, Pravasi Kaushal Vikas Yojana (PKVY), a joint initiative by the Ministry of External Affairs and Ministry of Skill Development & Entrepreneurship, equips workers with cultural skills for international integration.

While these initiatives are beneficial, there is a need for a more localized approach. Skilling initiatives should be prioritized at the state level, with dedicated schemes to address the manpower required for overseas opportunities conceptualized in consultation with local partners, recruiting agencies, and embassies.

States such as Uttar Pradesh, Bihar, Haryana, Odisha, and Assam have the potential to benefit tremendously, given their young population. However, this potential can be fully realized only with the support of conducive ecosystems for international markets provided by the respective state governments. Studies show a clear correlation between remittances and improved economic indicators in several Indian states. Punjab and Kerala, for instance, have witnessed a rise in overall income levels due to remittances sent back by migrant workers employed overseas.

A Holistic International Skilling Model

Developing a comprehensive skilling model or scheme is crucial to effectively bridge the skill gap in the workforce. This model should encompass various elements:

Identifying Pre-Skilled Candidates: Assessing the existing skill sets of potential emigrants through standardized tests and certifications enables targeted training programs focused on specific skill gaps.

Finishing Schools with International Standards: Finishing schools need to be established across states, adhering to standards aligned with international industry needs. Incorporating technology upgrades and engaging internationally qualified trainers will ensure the effectiveness of these schools.

Language Training: Fluency in the language of the destination country is essential for successful integration into the workforce. The skilling model should include language training programs that go beyond basic conversational skills, focusing on business communication and industry-specific terminology.

Integrated Support Services: Additional support services should include assistance with work visa applications, travel arrangements, and financial literacy programs to empower workers to make informed decisions regarding their earnings and investments.

Financial Literacy: Incorporating financial literacy programs further strengthens the skilling model. Equipping workers with financial management skills empowers them to maximize the benefits of overseas employment and make wise financial decisions.

Corporate Social Responsibility (CSR) Funds: Skill development is a key objective mandated by CSR, but it's predominantly focused on domestic placements. Corporates could expand their support to include overseas markets that offer greater income-earning potential. However, this expansion requires increased multi-stakeholder involvement. Strategic partnerships with private companies can provide financial resources for setting up crucial components of the skilling model.

The future of work demands continuous learning and adaptability. A well-rounded skilling model, encompassing the elements discussed above, can pave the way for a more competitive and globally relevant Indian workforce, leading to increased remittances, economic growth at the national and state levels, and a stronger global presence.

(The author Partner, Grant Thornton Bharat; Views are personal)

25. Global Rates will Come Down, India Certainly to be A Top Beneficiary

ET, 13 Jun. 2024

Indian elections may have sprung a surprise, denying an outright majority on its own to the BJP, but the likelihood of policy continuity and prospects of strong growth through Narendra Modi’s third premiership provide sufficient comfort to international businesses to commit funds here, José Viñals, chairman, Standard Chartered, tells Bhaskar Dutta and MC Govardhana Rangan.

Edited excerpts;

Europe has cut interest rates, while the US Fed remains on hold. India has said that interest rates will be determined by local factors. What does this mean for capital flows?

Yes, that may lead to a bit more currency volatility, a little more foreign exchange volatility. But I would expect that sooner or later, all interest rates in the advanced economies will come down and this is something which will be a relief for several emerging markets, particularly those that have borrowed more in foreign currency, or those with relatively less developed local currency markets. An important thing is that even after these interest rates have come down, they will remain higher than what they have been in the past. Economies with good fundamentals and good prospects like India will be able to claim an increasing share of that global capital pool. India is certainly at the top.

Recently, there has been a change in the political landscape in India. Is there a change in how international businesses look at India?

No, I don’t think so. The Indian economy continues to have strong fundamentals and that’s very important. It continues having a reform agenda, which in the view of international investors will be continued. It is a country whose bonds have been included recently in the JPMorgan index and the country has very good plans in terms of the new economy. It’s very important that democracies function and India is a functioning democracy. India is on a very strong growth path. It has already achieved the 5th position in the world in terms of the size of the economy and it is likely to now become number 3 by 2027.

There are segments that may interest investors. Which sectors of the economy are foreign investors looking at?

India is now very important in terms of services; it is trying to attract international investment. The government has programmes to provide subsidies – the PLI (performance linked incentive) programme. The focus on electronics, on semiconductors, on electric vehicles, renewable sources of energy – these are areas of immense opportunity for India, these are areas which are likely to attract tremendous investment from foreign direct investors and for foreign investors like what they see in terms of growth. This is something that bodes very well for India.

New tensions are emerging and today we have the EU slapping duty on Chinese EVs. How do you see these things evolving?

Global trade in services is growing significantly faster than global trade in goods and India has doubled its exports of services over the past five years. The growth of trade in digital services is even faster than the growth in trade in total services; and again, India has very significant comparative advantages. If we look at the next 20 years or even at the end of the decade — we have done a study on the future of trade – emerging markets are going to be the main drivers of global trade because emerging markets trade is going to be much more dynamic than advanced economies.

A very large portion of Standard Chartered’s profits and revenues come from Asia. Where does India fit?

We bank in 53 markets around the world. India is one of the top three contributors in terms of our operating profits. In terms of the bottom line, it’s one of the top 3. That tells you a lot. It’s a market which has tremendous promise, tremendous potential and one of the things that we are discussing is how we can further sharpen our activities in India as a cross-border bank, as an international bank, as a bank for the affluent and the small- and medium-enterprises so that we can maximise the opportunity provided by the Indian economy.

Global trade — one of the biggest business areas for international banks — has been uprooted by geopolitical tensions. How is Standard Chartered reading these and reshaped strategies?

We have been helping this process of reorganisation of global supply chains and benefiting from it because we have helped our clients establish shops in places like Vietnam, India, and Indonesia. We have been banking on this corridor between northern Asia, south Asia and south-east Asia and this has been leading to very significant middle or high double-digit growth rates.

Global banking system was supposedly strengthened post the financial crisis with the BIS leading the agenda. But we saw a few banks blow up in the US and Credit Suisse went down. Where are the cracks now?

Why didn’t things happen in the rest of the banking system? Because banks were well-regulated, banks were well-supervised. Watch out for the non-bank financial system. That was not regulated after the global financial crisis because it wasn’t the cause of the problem at the time. Now it’s come under the focus of regulation. So, look at the areas there — you have insurance companies, you have hedge funds, you have private equity, you have private credit, you have many different things. First of all, get better data, second, see if there are pockets of leverage that you don’t know about. If at the end of the day, there are intermediaries there which are doing the same activity and carrying the same risks as banks, they should have the same regulatory outcomes as banks.

Where does Standard Chartered fit in India’s banking space among MNCs?

There are huge opportunities in things like GIFT City. India has a large-scale local market. We are the top bankers for large local corporates. We are leading among international banks in terms of arranging external bond financing and local currency bond financing. Again, we have a very attractive customer value proposition regarding the affluent in India. All of this gives us a tremendous upside. We are looking at GIFT City as a very important opportunity. We were the first international bank to establish a presence in GIFT City and we want to capitalise on that by ramping up our focus on investment and trying to do as much as we can.

***

AAPI

Pages

Wednesday 19 June 2024

Newsletter, June 2024

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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

NEWSLETTER, JUNE 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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