AAPI: Newsletter, July 2024

DELHI, JUlY 2024

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Brookfield Targets $10b Investments in Renewable Sector
22. Joint task force to strengthen Indo-Norway collaboration on Blue Economy: Jitendra Singh
23. India can be a Third Growth Pillar with US, UK: TCS CEO
24. Professional Services Cos Add Record Partners as Biz Booms
25. Own Semicon Design, Brand Next Fab Job for India to Do

* * *

DELHI, JULY 2024

NEWSLETTER, JULY 2024

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1. Promoting science & technology without sensitivity towards humanity is disastrous: President Murmu

Addressing the students, the President said that meaningful education and knowledge is only that which is used for the betterment and upliftment of humanity. She expressed confidence that wherever they would be working, they would achieve the best levels of excellence in their field. She hoped that along with their achievements in their field of work, they would also discharge their social duties with full accountability. She said that Mahatma Gandhi has defined seven social sins, one of which is merciless science. That is, promoting science without sensitivity towards humanity is like committing a sin. She advised students to always remember this message of Gandhiji.

The President advised students to always maintain humility and the spirit of inquiry within them. She said that they are expected to consider their knowledge as a social enterprise and use it for the development of society and the country.

The President said along with the boon of science, there is always the danger of its curse. Today, very rapid changes are taking place in the field of science and technology. New technological developments are providing capabilities to human society, but at the same time, they are also creating new challenges for humanity. Like CRISPR-Cas9 has made gene editing very easy. This technology is a huge step towards solving many incurable diseases. However, problems related to ethical and social issues are also arising due to the use of this technology. Similarly, due to the advances in the field of Generative Artificial Intelligence, the problem of deepfakes and many regulatory challenges are coming to the fore.

Ensuring Food & Nutrition Security: Water-smart Ragi farming in Jharkhand transforming agri-food system

The Ragi mission initiative in Gumla is a testament to multi-stakeholder convergence wherein community institutions can anchor long-lasting, sustainable change.

Around 40 women are sitting in a sprawling metal sheeted hall, wearing disposable hair cover and gloves preparing Ragi ladoo diligently in the Gumla Ragi Processing Centre. Large coolers are trying to keep the heat under control as there is scorching heat with temperatures soaring to 40 C. The Ragi center is run by 5,000 women-led MVM Bhaghima-Palkot Farmer Producer Company (FPO). Kumari Baruwa, the Secretary of the FPO Board, shared that they are preparing ladoos to deliver Hans Foundation, an order of Rs 24 lakh. Deputy Commissioner Karn Satyarthi, on one of his visits to the centre, asked if they were to cultivate Ragi in the upcoming June cycle. A unanimous voice responded, yes, we would.

Ragi Renaissance in India

The Government of India launched the National Mission on Millet in 2018 with the aim to devise a strategy for the production, demand and research and marketing of value-added products and so on to ensure food & nutrition security for its vast population. The month of March 2021 turned out to be special because India received diplomatic success as the United Nations General Assembly (UNGA) accepted India's proposal to declare 2023 as the International Year of Millet. (IYM) . Further, to boost the value chain of millets based industry through private participation, the Ministry of Food Processing Industries (MoFPI) GoI approved the Production Linked Incentive Scheme for the Food Processing Industry of Millet based products (PLISMBP) in 2022 with an outlay of 800 cr. for the period till 2026-27. The result of the National Millet mission has been gradually palpable as the millet's production has increased from 13711 metric tons in 2018 to 17151 metric tons in 2022-23, an increase of around 79%. India occupies the top position in millet production in the world, followed by China and Niger, but a lot of latent potential is still awaiting to be unleashed for the country.

A young Indian luxury shoe brand from Chennai is acquiring a global appeal

Tamil Nadu has been among India’s biggest leather production hubs for well over half a century. The state, the largest exporter of leather products, is home to several shoe factories that are clustered around Chennai. A majority of these companies make hundreds of thousands of leather and, of late, non-leather shoes for everyone from Cole Haan and Clarks, to Adidas and Crocs. A select few, however, cater to finickier clients, from boutique European, Japanese, and Spanish shoemakers to heritage English brands. Affan Leathers, located in Tiruvallur, is one of them, but that is not the reason why it features here.

About 12 years ago, foreshadowing, in a way, the growing ambition of boutique luxury brands from India, the three-decade-old company started selling its shoes in Japan under the Bridlen brand name. “In 2017 when I became more involved with the business, I wanted to offer the same level of quality we offered in Japan to the world,” says Mohammed Affan K, who heads Bridlen.

Bridlen is perhaps the only Indian made-to-order shoe brand with a clear, serious intent. Its shoes are retailed in London and Singapore as well as in Delhi and Kolkata; it regularly organises trunk shows across the world; and last year, to the delight of shoe fiends, it hosted the winning designs of the annual World Championship of Shoemaking in Chennai while the shoes were on a world tour.

The company offers Goodyear-welted shoes under two main lines – made-to-order and ready-to-wear – in a range of styles, from the green tassled loafers Affan is wearing on the day of this writer’s video interview with him to derbies, monkstraps, and oxfords. Goodyear-welting is a labour- and material-intensive shoe construction method invented in 1869 by Charles Goodyear Jr, whose father invented the rubber vulcanisation process. The welt is a strip of leather sewn around the bottom edge of the upper leathers, to which the outsole is later stitched. Goodyear-welting allows a pair to be resoled a number of times without damaging the uppers unlike the more commonly used – and quicker – cement construction in which the upper leather is glued directly to the outsole. (Your sneakers as well as shoes from several fast-fashion brands, for instance, use cement construction.)

Taller, Stronger, Sharper Desi Pharma is On a Roll

While there had been 21 brands with over ₹100-crore sales in FY09, the number rose to 388 brands in FY24, representing a growth of 18 times. The share of large brands has increased from 52% in FY09 to 78% in FY24.

Of those 388 brands, 25 have sales above ₹500 crore and 79 above ₹250 crore. There weren’t any pharmaceutical brands in India that had sales of over ₹500 crore in FY09.

The revenue growth of ₹100 crore-plus brands have outpaced the industry by 1.3x. The brands grew by 14%, compared to the Indian pharmaceutical market (IPM) that grew 11% between FY09 and FY24, the report added.

The report attributed the growth of large brands to lifestyle diseases, prevalent quality issues that made doctors and customers rely more on big, well-known brands, along with aggressive sales and marketing push by pharma companies. Around 206 brands were lifestyle diseases such as cardiac, anti-diabetes, neuro and respiratory (COPD). Over-the-counter brands constitute 87.

Pharma companies spend 25–30% of revenues to connect with doctors, leading to over 90% of the prescriptions. In turn, 98% of doctor prescriptions are for branded generics (BGx), relying on top brands and trusted pharma companies for quality.

The report says domestic formulation makers have attracted large strategic and private equity investments in deals worth over $14 billion over the last 6 years.

The report says branded formulation market may undergo some fundamental shifts due to emergence of trade generics and generic-generic, more stringent manufacturing standards and compliance, stricter Uniform Code for Pharmaceutical Marketing Practices. (UCPMP), and efforts to limit trade margins.

Own Semicon Design, Brand Next Fab Job for India to Do

India has the potential to “rise and emerge” as a major player in the next big semiconductor wave, given its human capital is already driving technology giants Intel, Qualcomm, Nvidia, said Lip-Bu Tan, one of the most influential global voices in the multi-billion dollar chip industry.

But India needs to play to its strength and focus on value additions such as chip design instead of fabrication, which is capital intensive, power guzzling and risky in the absence of committed long-term customers.

“Many Indian entrepreneurs are comfortable outsourcing IT designs. India is seen as an outsourcing and not as a product nation. Therefore, I always encourage companies to focus on purpose-built silicon,” Tan, 65, told ET.

In the country to attend Anant Ambani’s wedding, Tan also held meetings with India Inc chiefs and he will also attend the launch of Yali Capital, the first homegrown deep-tech venture fund with a strong emphasis on chip design in Bengaluru on Monday. He will be the fund’s anchor investor and advisor.

“The next step for India should be not to focus only on semiconductor fabrication, but to design and build its own products and create its own homegrown semiconductor brand,” said Tan, adding that he was “glad that the Indian government realised that semiconductors are so important as a foundation of any computing device”.

Tan’s comments gain significance in an artificial intelligence-driven, post-Covid world where chips have become a key geostrategic tool. A new tech race between Washington and Beijing has split the world into two cohorts.

2. Education system must create global citizens for 21st century world driven by technology: Pradhan

ET Gov. 10 Jul. 2024

Union Education Minister Dharmendra Pradhan addresses the inaugural session of review meeting of Department of School Education and Literacy with states and Union Territories in New Delhi on Tuesday.

Union Education Minister Dharmendra Pradhan on Tuesday said education is a key pillar of the Prime Minister Narendra Modi’s vision of Viksit Bharat and called upon states and UTs to work together to achieve this goal. In almost four years of National Education Policy, the education ecosystem in the country has made tremendous progress and implementation of NEP is key to transforming Bharat into a knowledge superpower and enabling equitable and inclusive access to quality education, he added.

Addressing the inaugural session of review meeting of Department of School Education and Literacy with states and Union Territories, Pradhan unveiled his thoughts on the roadmap for the next five years for the holistic development of school education across India.

Stating that the National Education Policy 2020 stresses upon the importance of education in mother tongue and all Indian languages, Pradhan called upon carrying forward the basic spirit of NEP -- ensuring Access, Equity, Quality, Affordability and Accountability in education.

The minister said that India is a young country and our challenge is to make global citizens for the 21st century world which is rapidly changing and being driven by technology. Ensuring an education system which is both rooted and futuristic is our collective responsibility, he further added. He also stressed upon the importance of building technology readiness in schools with a holistic approach and ensuring critical thinking among students.

He urged that both states and Centre have to work as a team to strengthen the education ecosystem as well as to replicate and amplify best-practices from across all States/UTs. He called upon all stakeholders in states/UTs to work cohesively for strengthening capacities, building a collaborative education system and leveraging education as the key pillar of Viksit Bharat.

He also spoke about the emotional connect one shares with their school teachers and the importance of teachers’ capacity building in making our educational ecosystem more vibrant. Speaking about competency-based education, he said that we must also augment our skilling capacities to increase employability.

Speaking at the event, Minister of State for Education Jayant Chaudhary said NEP 2020 is the most ambitious and progressive policy document. He also highlighted how improving GER and taking it to 100% is extremely important and students from the economically and socially backward, tribal communities must be included in the formal educational system. He also spoke about other ambitious programmes of the Ministry such as PM SHRI and invited states to be a part of the programme.

Secretary, DoSE&L, Sanjay Kumar, stated that the main aim of the review meeting will be reviewing NEP 2020 and its implementation in the states and alignment of the flagship schemes of the ministry such as the Samagra Siksha, PM SHRI, PM Poshan, ULLAS, etc with the policy, he added. He also said that the meeting will also help in developing the roadmap for the coming five years.

During the meeting, discussion will be held on the five-year action plan; 100 days action plan; on status of the progress of infrastructure and civil works, ICT and Smart classrooms under Samagra Shiksha for all states/UTs; discussion on the status/setting up of VSK and 200 channels; finalization of UDISE+ for 2023-24; best practices; discussion on DIET: upgradation as Centers of Excellence; and need for tobacco control and implantation of TOFEI guidelines in schools.

3. Gorakhpur Link Expressway Lucknow to Gorakhpur: Gorakhpur link expressway to be inaugurated soon, will provide a fast route to Lucknow and Delhi

ET, 21 Jun. 2024

UPEIDA has incurred expenditures of Rs. 1564 crore on land acquisition and Rs. 3478 crore on construction of this link expressway.

Lucknow: The construction of Gorakhpur Link Expressway, which will connect Gorakhpur to Purvanchal Expressway, is set to be completed this month, with 97% of the work already completed.

The 91.352 km long expressway is being constructed at a cost of about Rs. 5000 crore and will facilitate smooth and fast travel between Lucknow, Agra, and Delhi.

Considered amongst one of the priority projects of Chief Minister Yogi Adityanath, the Gorakhpur Link Expressway begins near Gram Jaitpur on Gorakhpur Bypass NH27 and connects to Salarpur in Azamgarh.

The Gorakhpur Link Expressway is an access-controlled highway and is expected to reduce traffic congestion, improve traffic flow, and promote foundational infrastructure development. It will also enhance employment opportunities and contribute to social and economic development of Uttar Pradesh.

Manoj Kumar Singh, Infrastructure & Industrial Development Commissioner and CEO of Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), stated that the construction of Gorakhpur Link Expressway is progressing rapidly, with more than 97% of the work completed.

The opening of this link expressway will significantly contribute to the economic, social, and industrial development of Uttar Pradesh's Purvanchal regions. It is expected to spur development in agriculture, commerce, and tourism sectors and generate more employment opportunities.

UPEIDA has incurred expenditures of Rs. 1564 crore on land acquisition and Rs. 3478 crore on construction of this link expressway.

Out of 341 structures planned along the Gorakhpur Link Expressway, construction of 337 has already been completed, with the remaining structures expected to be finished soon.

Four flyovers, 12 vehicular underpasses (VUPs), 29 light vehicle underpasses (LVUPs), 25 pedestrian underpasses (PUPs), 5 major bridges, 7 minor bridges, and 206 box culverts have been constructed on this expressway. The expressway will also have a 110-meter right-of-way (ROW).

To provide access to residents of villages along the expressway, service roads are being constructed on one side of the expressway. Plans are also underway to build public amenities at two locations along with underpasses for the convenience of expressway users.

The Gorakhpur Link Expressway from Lucknow to Gorakhpur has been divided into two phases and is being implemented under the EPC (Engineering, Procurement, and Construction) mode.

4. Yamuna can be made pristine, Delhi’s perennial water woes resolved in 4 years: Manoj Tiwari

ET Gov. 21 Jun. 2024

“Phenomenal advances have been made in the area of banking. People in rural areas now have bank accounts. The benefits from the government go directly into their accounts, eliminating the need for middle men. Close to 52 crore people have been linked to Jan Dhan accounts.

“A lot has been done for the upliftment of women. The Lakhpati Didi Yojana has created a large number of women entrepreneurs. If you look at all these initiatives in a holistic manner, then you will realize that the word ‘miraculous’ that I am using to describe the development that has happened in the country in the last 10 years is not an exaggeration.”

This was stated by Manoj Tiwari, Member of Parliament, Lok Sabha, in conversation with Anoop Verma, Editor (Desk), ETGovernment. In the interview that follows, Tiwari mainly talks about the development work done by the Modi government in the last 10 years.

Edited excerpts:

You have been a Member of the Parliament for the last 10 years and now you have won an impressive victory for a third term. How do you see the development work that has happened in the country in the last 10 years?

I have had the honor of being a Member of the Parliament since 2014. Between 2014 and 2024, the development that has taken place in the country can only be called miraculous. I am using the word ‘miraculous’ with great care. Look at the area of infrastructure–the entire country has been transformed. There have been major advancements in road and rail networks. At night time, if you take a video of NH24 and take a video of the road going from Banaras to Vindhyachal, you won’t be able to tell the difference. The road infrastructure in Banaras has become as good as that in Delhi. In Mumbai, a 21.8 km long sea link, called Atal Bihari Vajpayee Sewri–Nhava Sheva Atal Setu, has come up. How did this happen?

You are saying that the development of infrastructure like roads and railways was the Modi government’s biggest achievement in the last 10 years. Is that right?

The building of goods roads and railway networks directly impacts the life of the people in the country. In the last ten years, infrastructure development has happened in all parts of the country. Several parts of North India were backward because of lack of proper roads, highways and other infrastructure. This problem has been addressed to a large extent. Go from one city to another in various parts of India and you will find yourself traveling on world class roads.

Phenomenal advances have been made in the area of banking. People in rural areas now have bank accounts. The benefits from the government go directly into their accounts, eliminating the need for middle men. Close to 52 crore people have been linked to Jan Dhan accounts. A lot has been done for the upliftment of women. The Lakhpati Didi Yojana has created a large number of women entrepreneurs. If you look at all these developments in a holistic manner, then you will realize that the word ‘miraculous’ that I am using is not an exaggeration.

How much improvement has happened in your Lok Sabha constituency in Delhi?

Even though the BJP was not in power in Delhi, through the efforts of the central government, there have been landmark improvements in all parts of Delhi, including my constituency. In 2014, there was no metro in my constituency. This has changed in the last 10 years. Now people have access to metro services. There was no central school, no passport office in my constituency 10 years ago. Now all these facilities are there.

There has been a vast improvement in the condition of roads. Earlier the area used to be plagued with traffic jams, which are now a thing of the past. The flow of traffic has become smooth. To give an example, if someone living in Shahdara, who used to travel for over 8 hours to reach Dehradun, is able to make the journey in mere 2.5 hours, his life will become much easier. This is the kind of transformation that has happened in my constituency.

Who do you credit for all these major developments?

A major part of the credit goes to Prime Minister Narendra Modi ji. But the credit also goes to the hardworking and enterprising workers of this country—those who made the roads, banking systems, railway lines and trains and other infrastructure and systems for the benefit of the people. People of this country understand that Modi ji has brought unprecedented development to this country–that is why the NDA has once again won with a clear majority. People have faith in Modi ji and his government. They expect more development and better quality of life in the next five years under Modi.

As you noted, a lot of development work has happened in the last five or ten years. What is the vision and agenda for the next five years?

The agenda is clear. We will increase the number of highways. We will increase the length of the existing metros and take the metro system to other major towns and cities. We will increase the number of Vande Bharat trains. We will give Bullet Trains to the nation. We want all citizens, especially the elderly to have easy access to best quality healthcare. We have come up with a policy where whether you are poor or rich, the medical treatment of 70+ people is the government's responsibility. It is when you are over 70 that you need maximum medical care, and we are making sure that all elderly have access to the healthcare facilities that they need.

Another important development is that now the nation has reached the stage where we can make 300 units of electricity free for all consumers. Such an initiative will reduce the burden on the poor and the middle class. The way the renewable energy sector is being developed in the country, a stage will come when the use of diesel and petrol is no longer necessary. The policies of the Modi government have made rooftop solar popular in the country. People in all parts of the country can produce solar power in their house–whatever extra electricity they produce is purchased by the government, earning the households some extra income.

In the early days of your political career, you expressed concerns regarding the lack of development in Purvanchal region. In the last 10 years, a lot of new developments have happened in this area. How do you see the Purvanchal region of Uttar Pradesh now?

For Purvanchal, Modi ji has come as a boon. There has been holistic development in Purvanchal. Roads, highways and other infrastructure have come up. A major improvement has also happened in the area of law & order. Earlier the area was plagued with criminals and mafia gangs. Now the situation has improved to a vast degree, as a result businesses are thriving, and happiness has arrived in the lives of the poor and the middle class.

You are a third time MP from Delhi. Today Delhi is suffering from an acute water crisis. Can there be a long term solution to this water crisis?

The water crisis is the result of lack of development in the city. In six months, there will be elections in Delhi. I hope people will vote Modi’s party to power. Once we are in power here, I can guarantee that we will solve the water crisis in mere four years. We will separate all the drains from Yamuna and make the river pristine and glorious. We will create new infrastructure for storing and regulating the flow of water. We will ensure that the Yamuna river is full of water throughout the year and Delhi never faces another water crisis.

5. India's solar industry is a goldmine for investors

Pioneer, 22 Jun. 2024

India, June 22 -- India's solar energy sector is shining brighter than ever, emerging as a goldmine for investors and entrepreneurs. The market, valued at $38 billion in 2021, is set to grow exponentially, reaching $238 billion by 2032, driven by an impressive 40 per cent compound annual growth rate (CAGR).

The surge in global demand for renewable energy has placed solar power at the centre stage, particularly in India. With supportive Government policies, technological advancements and an increasing shift towards sustainability, the solar energy sector is witnessing unprecedented growth. Entrepreneurs and investors capitalise on this momentum, prioritising their goals to reap substantial benefits in the coming years.

Technological innovations are at the heart of the solar industry's success. Commercial solar panels have gotten way better at turning sunlight into electricity, cranking up the power they can produce per square foot. The switch from polycrystalline to more advanced bifacial solar panels, which can generate power from both sides, shows how the industry is focused on squeezing out as much efficiency as possible.

In recent years, PERC (Passivated Emitter and Rear Cell) technology has been predominant in India's solar panel market. However, due to efficiency limitations in mass production, there is a gradual shift towards more advanced technologies like TOPCon (Tunnel Oxide Passivated Contact) and HJT (Heterojunction Technology). Government Policies.

The Indian Government's policies have played a crucial role in transforming the solar energy landscape. The Production-Linked Incentive (PLI) schemes, with substantial financial allocations (PLI-I with Rs. 4,500 crores and PLI-II with Rs. 19,500 crores), are designed to boost domestic manufacturing of solar components.

Further bolstering the "Make in India" initiative, the Approved List of Models and Manufacturers (ALMM) was reinStated on April 1, 2024, ensuring quality control and encouraging the use of domestically manufactured modules. Various projects by the Ministry of New and Renewable Energy (MNRE), such as the CPSU Scheme Phase-II, PM-KUSUM Component B and the Grid-connected Rooftop Solar Programme Phase-II, mandate the use of Domestic Content Requirement (DCR) solar panels, providing subsidies to promote the adoption of solar energy.

Environmental Impact

The solar industry in India isn't just about fulfilling energy requirements - it's also helping the environment. By using more solar power and relying less on fossil fuels, the solar industry is assisting in eliminating greenhouse gas emissions and fighting climate change. Shifting towards renewable energy, like solar power, is super crucial for India's climate goals and ensuring a sustainable future.

Market Potential and Investment Opportunities

India's solar energy market presents a plethora of opportunities for investors and entrepreneurs. The sector's rapid growth and the increasing acceptance of solar power for both commercial and personal uses underscore its potential. With Government support and ongoing technological advancements, the barriers to entry are diminishing, making it an attractive proposition for new ventures.

Besides, technological advancements enhance efficiency and reduce costs, increasing profitability. Entrepreneurs can explore various segments within the industry.

On a larger front, the global shift towards sustainability ensures a steady demand for solar energy solutions, providing businesses with a long-term growth trajectory. Moreover, India's solar industry's robust market potential, Government support and technological innovation make it a compelling opportunity for those looking to invest or start a venture in renewable energy.

(The writer is the CEO, of Gautam Solar, views are personal)

- Agriculture, Fishing and Rural Development

6. Technologies, policies to empower farmers, encourage sustainable farming: Political acumen needed for agri reforms

ET Gov. 24, Jun. 2024

Will our political leaders and farmer representatives replicate Senators Bayh and Dole in national interest?

A casual visit to any village these days brings one face to face with farmers, heads wrapped in white cotton clothes, preparing the farms for ensuing crops. One may also see some of them, the early sowers, looking for germination of seeds and tending fields.

Farmers sacrifice comforts for ensuring a healthy and timely crop. While protection from scorching heat is important to farmers, the first priority remains ensuring multiple healthy crops every season for sustainable farming with commensurate returns. Farming is a full time activity. Farms have to be pre-prepared for the crop season. Every soil cannot produce every crop; neither every crop gives profitable returns. Hence, farmers need to make judicious decisions on high yield and nutritious crops suitable for the soil.

Many pre-sowing activities like improving soil through organic/micro/nano fertilizers; irrigation, plowing etc. need to be completed in time. Seeding of soil needs to be done using best practices. If everything goes well, several other pre-harvest farm practices like hoeing, irrigation, weeding, pest management, harvesting and post harvest practices are waiting in queue to keep farmers involved round the clock.

Farms being out in the open, suffer from vagaries of nature as well. All in all, farming seems to be a risky, but unavoidable, business. Farmers face hardships, not normally faced by workers in other sectors. Farmers try to cover risks by growing multiple crops in each crop season to improve income. They work full time, round the year and 24x7, along with their family members. They work in harsh weather and during difficult times, for they know the importance of timeliness of observations, decisions and actions in agriculture and their impact on the economy of their families.

The farmer also knows that untimeliness of actions would lead to not only the family's economic distress, but would also cost the state and nation also heavily. The difficulties, risks, non-commensurate returns and the impact of agriculture on the well being of citizens and GDP call for reforms in agriculture for it to become a more vibrant, profitable and preferred business of youth.

For farmers, reforms mean better and satisfactory return on investment, as also advocated in Swaminathan Committee Report 2006. Farmers need cost effective technologies that can minimize drudgeries, reduce cost of production and help in getting plentiful crop production supported by modern & cheap storage and transport facilities as well as easy and safer access to supply chain.

Small and marginal farmers who constitute about 86% of total farmers in our country, more than anyone else, are in dire need of such technologies, infrastructure, services and enabling ecosystem in the country for agriculture to become a profitable venture for them.

The Reforms So Far

Advocacy to bring in disruptive reforms in agriculture is gaining considerable space these days. One must understand that in the agriculture sector, as in fact in any other sector also, reforms should be a continual process through distributed identification of evolving issues and their redressal. Accordingly, the country has been implementing institutional, market and technological reforms oriented programs since its independence in 1947.

The most notable reforms after independence had been through ‘Essential Commodity Act 1955’ for the control of production; supply and distribution of certain commodities; and their trade and commerce. ‘Land Reforms’ were equally important, whose implementation, though a daunting task, was completed successfully through political consensus.

Unlike the well-known High Yielding Variety Programme, the Drought Prone Areas Programme, Desert Development Programme, Integrated Watershed Management Programme, Integrated Rural Development programme and Command Area Development and Water Management (CADWM) were also silently but successfully implemented.

Emphasis on R&D in agriculture during the 1960s and 1970s led to the development and adoption of dwarf and input responsive varieties of rice and wheat, leading to the Green Revolution. Intensive Cattle Development Programme and Operation Flood during 1964-65 resulted in White Revolution. Buoyed by these two successes, the Nili Kranti Mission and Technology Mission on Oilseeds were launched by the government during 1985-90 to promote aquaculture and enhance oilseed production, respectively.

Among the later important reforms, ‘ICAR- National Bureau of Animal Genetic Resources (ICAR-NBAGR)’ was fully established in 1995 with its mandate of identification, evaluation, characterization, conservation and utilization of livestock and poultry genetic resources of the country. Similarly, ‘National Bureau of Plant Genetic Resources’ and ‘National Gene Bank’ were established in 1996 to preserve Plant Genetic Resources (PGR) for future generations.

A sui generis system for the protection of plant varieties and farmers' rights was implemented through ‘Protection of Plant Varieties and Farmers’ Rights Act 2001’. Similarly, the ‘Seed Act 2004’, repealing the ‘Seeds Act 1966’, came into force with the aim of maintaining a ‘National Register of Seeds’ for all varieties and regulating their quality for sale, import and export. Besides, a ‘Seed Bank’ has also been operational since 1999-2000.

The core objective of Seed Bank is to make seeds available in contingent situations. In addition to these, ‘National Animal Disease Control Programme (NADCP)’, a flagship scheme of the Department of Animal Husbandry and Dairying, was launched by Prime Minister Narendra Modi in 2019 to control ‘Foot & Mouth Disease (FMD)’ and ‘Brucellosis’ by vaccinating 100% concerned animals. This initiative has proved to be a highly successful one.

Creating a National Agriculture Market by electronically connecting all countrywide Mandis (e-NAM) has been a great reform in agri-product marketing. The government has also set up thirteen Agri-Cells in Indian embassies in Vietnam, USA, Bangladesh, Nepal, UAE, Iran, Saudi Arabia, Malaysia, Indonesia, Singapore, China, Japan and Argentina to promote agri-exports.

All these reforms repetitively aimed at better utilization of natural resources, increase in production and income, reduction in cost of farming and improvement of the lives of farmers. The reforms, introduced from time to time by our successive governments, resulted in remarkable success in

ensuring food & nutritional security to ever growing population and bringing credible change in the rural economic landscape of India.

The purchasing power of rural India got enhanced, which impacted growth of the manufacturing sector particularly tractor and machine & tools industry and creation of new jobs.

The Case for Further Reforms

It is universally agreed that further holistic reforms in farm policies to solve the ongoing farmers’ issues would be in the national interest. Growth of agriculture has to keep pace with the growth in the economy. Unfortunately, agri-GDP growth during 2023-24 was just 0.7% as against overall GDP growth of 7.6% as reported in Financial Express on 01 April 2024. With about 46% of the working population still engaged in agriculture, the situation presents an unsustainable model of development.

Despite the government of India spending huge sums on subsidies each year (estimated to be Rs. 1.25 lakh crore in 2023-24), the benefits have not reached the small and marginal farmers. Deveshwar and Panwar in their paper ‘Overview of Agricultural Subsidies in India and Its Impact on Environment’ published in Current world Environment 2024 [19(1)] have estimated that 89% subsidies go to medium and large farmers, leaving only 11% for small and marginal farming communities. This skewed benefit in favor of less deserving needs correction.

There are several new challenges that have emerged in recent years: reduction of individual land-holding; increasing cost of input material and labor; limited availability of post harvest crop processing facilities; limited and scattered cold-storages and cold chains; erosion in soil and lack of nutrients in soil; depletion of natural water resources; need for food and cash crops with higher yield and disease resistance; migration of youth from agriculture to other sectors; limited and continuously reducing pool of trained human resources; diminishing budgetary support to agricultural universities and institutions; limited participation of private sector in R&D and innovation; slow and comparatively less-organized diffusion of technologies; prevailing geo-security environment affecting global competitions and control regimes; adverse effects of climate change on agriculture; changes required in current agricultural practices to meet goals of sustainable development; etc.

Indian farmers, especially those with small and marginal land holdings, also aspire to make their contribution to the Indian economy of ‘Viksit Bharat by 2047’ to enhance their self-respect and reap the benefit of development to lead a respectable life.

Bharat, in any case, cannot be called Viksit till the rural economy is in distress. McKinsey estimates that the Indian agriculture sector has the potential to contribute to the tune of USD 600 Billion by 2030, if proper reforms are implemented and a conducive infrastructure and ecosystem is created. With such an aspirational contribution of agriculture, the economic development of the country would leapfrog to compete with several developed nations. Holistic reforms to address issues flagged herein will unlock potential of Indian agriculture, generate socially respectable employment to a sizable rural workforce and strengthen rural economy.

Unfortunately, many issues, especially micro issues related to marginal and small farmers, go unnoticed by policy makers. Equally unfortunately, farmers’ organizations also rarely take up unique problems of marginal farmers, as these may, sometimes, be contrary to the requirement of a large and influential farming community.

With Minister Shivraj Singh Chauhan, in charge of Agriculture and Rural Development Ministries in the new government, agricultural reforms are likely to become central to the agenda of reforms in the central government. He has a proven track record of uplifting agriculture in the state of Madhya Pradesh. It may, therefore, be the right time to take a comprehensive stock of issues and find a consensual solution.

It may be worthwhile to review the contribution of the cooperative movement in White Revolution to replicate the model for small and marginal farmers of the country. While doing so, one may also learn from other past experiences in our country as well as other prominent ones.

The American Experience

Policy makers usually push forward the agenda of national interest through assertive push and strong measures. While doing so, they need to safeguard farmers’ interest as well. Indian political parties and Farmers’ Organizations also have to play a constructive role in this. It may be advisable to our Kisan Leaders and politicians to take lessons from pragmatic and practical approaches taken by US parliamentarians to solve their contentious issues and problems.

The solutions were found through political and public debates and discussions using reports of experts as base documents for reforms. For example, after World War II, there was a strong feeling amongst a formidable section of politicians and social groups in the US to reduce expenditure on research and development.

Facing pressure from their demand, the then President of the USA requested Mr. Vannevar Bush, Director of the Office of Scientific Research and Development, to come out with relevant policy suggestions in national interest. Vannevar submitted an illustrious report ‘Science, The Endless Frontier’ to the then US President in 1945. The report emphasised upon promoting science and technology in all walks of life including agriculture. The report suggested continuation of investment on fundamental sciences and engineering research.

It was also opined in the report that the USA must strengthen the centers of basic research and training. Such institutions should provide a conducive environment for creation of new scientific knowledge. They should also produce trained human resources to cater for the future needs of the nation. The recommendations were accepted and implemented after agreement with opponents.

The successive US governments followed the line to make the USA the global leader in science and technology. Further and interestingly, even after adoption of science and technologies vigorously, the USA faced unprecedented recession during 1973–1975. This was a period of economic stagnation, unemployment and inflation.

To bring the USA out of the recession, several measures were taken through close coordination between ruling and opposition parties. Joint efforts of Senators, Birch Bayh of Indiana and Bob Dole of Kansas, can be cited as the most glorious example of this coordination. Both senators, political opponents belonging to different parties, set together for months in national interest and came out with a bipartisan bill, which became ‘Bayh-Dole Act 1980’ later.

This Act significantly helped in ushering in the revolution in biotechnology; attracting talent for the development of cutting edge technologies in different fields; fostering useful innovations; creating unprecedented encouragement for generation, licensing & commercialization of technologies by institutions; causing competition amongst academic, research and development institutions; etc.

All these measures have had a massive impact on the US economy. Due to its impressive contribution to US superiority in S&T, Gabrielle Athanasius of Center for Strategic and International Studies in the USA reviewed the impact in a blog entitled ‘The Legacy of Bayh-Dole’s Success on US Global Competitiveness Today’ in January 2022.

Will our political leaders and farmer representatives replicate Senators Bayh and Dole in national interest?

(Dr Ram Srivastava is Professor (Retd), HAU Hisar and Ex Consultant Haryana Farmers’ Commission; Dr Hari Babu Srivastava is Professor of Practice, IIT Delhi and former Distinguished Scientist and DG, DRDO; Views are personal)

7. Ensuring Food & Nutrition Security: Water-smart Ragi farming in Jharkhand transforming agri-food system

ET Gov. 24 Jun. 2024

The Ragi mission initiative in Gumla is a testament to multi-stakeholder convergence wherein community institutions can anchor long-lasting, sustainable change.

Had he asked the same question three years ago, he would have heard very few voices in the crowd. Ragi was not so much in our priority, Gumla is known for rice, vegetable and mango production. Now, you will see villagers opting for ragi cultivation in good numbers as we receive better prices than rice and water in the village streams gets dried quite early with the onset of the summer, says Kumari Baruwa, Secretary, MVM Bhaghima Palkot Ragi FPO, Gumla.

Ragi Renaissance in India

State Governments have been encouraged to launch the millet mission on their own based on local context. Two states, Orissa and Chattisgarh, have become the front runner in the Eastern and central part and are competing with the southern leaders like Karnataka and Tamil Nadu. Odisha has allocated Rs 2808 crore for the cycle of 2021-22 to 2026-27 to increase production, consumption, the development of enterprises, capacity building, and so on. Chhattisgarh also launched the Chattisgarh Millet mission with funfare in 2021 with a budget outlay of Rs 170 crore for 2021-2026. It also made a provision of Rs 900/ Hectare input subsidy under Nyuntam Aay Yojana (NYAY).

The MSP Conundrum in Millets

The Government of India, along with a host of other crops, also declares a Minimum Support Price (MSP) for three millets, Jowar, Bajra and ragi. There is an interesting trend in the rise of MSP of these millet crops since 2016-17. It has been strategically increased since 2016-17 with a 48.2 % increase in the MSP till this financial year. For instance, in 2016-17, the MSP for Ragi was Rs 1,725/quintal, which increased to Rs 3,578/quintal in 2022-23.

The MSP on Paddy, a dominant crop almost part of the food platter of whole India, has also received a growth of 71% since 2016-17, but in price terms, it is quite less when compared with millet's MSP. Millets need to be positioned as a substitute crop to farmers with better price realisation. But the issue with MSP in general and MSP on millets in particular that is not enforced or a guarantee of assured buyback so far as the rate of procurement by GoI is taking off in a steady manner.

The majority of states have neither given heed to the GOI declared MSP nor declared their own, barring Chhattisgarh, the only state to declare an MSP on Kodi, Kutki (Little millets) Rs 30/kg and Ragi (finger millet) Rs 33.77/kg in 2021-22. The Odisha Government is also doing procurement on GoI declared MSP of Rs 35.78/kg and claimed to have procured more than 600 metric tons.

As per the Ministry of Agriculture & Farmer Welfare, GoI, in the last five years, the Government procured 423675 metric tonnes, 758094 metric tonnes and 1676067 metric tonnes jowar, bajra and ragi, respectively. The procurement needs to be expanded intensively and integrated with the PM-POSHAN, Integrated Child Development scheme and PDS system deeply.

Gumla's Ragi mission; classic case of convergence model for Community Development, Food & Nutrition Security

Ragi has become a buzz word since 2022 in this tribal district of Jharkhand which is prone to large-scale distressed migration and has been affected by left wing extremism till recent years. The ragi mission was started by former Deputy commissioner, Sushant Gaurav, IAS officer in coordination with Jharkhand State Livelihood Promotion Society

(JSLPS), Krishi Vigyan Kendra, Women SHGs, has been duly taken forward by the incumbent DC, Karn Satyarthi. The initiative, along with a host of other initiatives under the leadership of Sushant Gaurav, was bestowed with the Prime Minister’s award for Excellence in Administration by the Honourable Prime Minister in 2023.

Ragi has turned out to be an apt crop due to its topography, hilly terrain, and soil, mostly of sandy clay, and red laterite, which is a less fertile and rain-fed region with annual 1200-1400 mm rainfall. These conditions earlier compelled farmers to have one crop annually, Paddy, the dominant crop in the district.

Kumari Baruwa highlights enthusiasm about Ragi cultivation in the upcoming cycle due to the establishment of an end-to-end Ragi value chain in the district. The district has engaged more than 30,000 farmers in the last two years and achieved a significant increase in its Ragi production, which is up to 60 MT.

The women's FPO is running an in-house, sprawling processing centre and Johar millet Cafe outlet. The FPO is marketing its various ragi products like. Ragi ladoo, cookies, mixture, flour, namkeen and thekua through its Johar Millet cafe in the heart of Gumla town. Ragi ladoo is one of the FPO's most sought-after products. It is rich in fibre and has ample calcium and iron content along with low fat.

The FPO has supplied Ragi ladoos to the social welfare department, which distributes the same in Anganwadi centres to combat malnutrition among the infants and pregnant women. The FPO has also entered into partnership with Hindalco and Hans Foundation. The latter is running a malnutrition eradication program with the Government of Jharkhand in several districts of Jharkhand.

Unfortunately, the prevalence of anaemia malnutrition has been high in Gumla, Simdega, Khunti and Latehar districts, mainly populated by the tribals. NFHS-5 data projects more than 67.5 % of children between 6-59 months as anaemic and 65.8% of women between 15-19 years as anaemic. Adding millet products like Ragi laddo and ragi consumption in the food platter can be a game-changer for the state. Jharkhand is yet to launch a full-fledged Millet mission, there

Serious Water Crisis in the Agri-pockets of India

Kumari Baruwa’s concern about the water crisis affecting her village's agriculture and social life is not unwarranted in the face of adverse climatic changes; events like drought, erratic rainfall patterns becoming the norm and high precipitation-induced worsening water table etc are evident around us.

Gumla has 1.96 lakh farmers, out of which 90% are small and marginal farmers (SMF) who are at the receiving end of climate change-induced catastrophe. Based on the last agriculture census 2015-16, 86 % of India farmers fall in the category of SMF, climate-resilient crop transition like Ragi and other millets is vital in this regard.

Ministry of Jal Shakti, GOI, in response to an unstarred question in 2021 in Lok Sabha on water-stressed districts, shared that based on a 2017 pan-India survey of “assessment units” (Blocks/Taluka/Mandal etc.) by Central Ground Water Board (CGWB) 17 % of assessment units are under “over exploited” category due to exorbitant annual groundwater extraction vis-a-vis annual extractable ground water in these pockets.

The CGWB 2017 has alarmed bells for the prime green revolution beneficiary states’; Punjab, Haryana with 79% & 63% development blocks under the over-exploited category. Same with Rajasthan, Himachal and Tamil Nadu. Since this last CGWA survey, much water has flown under the bridge for the worse due to uncontrolled anthropogenic activities and a half-hearted approach to arrest the trend at all stakeholder levels. Any drastic disruption in water and agriculture has serious food & national security implications.

Reimagining the Local Institutions

In a 2023 report "The Impact of Disasters on Agriculture and Food Security by United Nations Food and Agriculture Organisation (FAO)", it advocates for infusing resilience in agri-food systems, through more and more data on disasters and agriculture, multi-sectoral and multi-hazard risk reduction approaches ingrained into policy and decision making; and investment in building resilience.

Considering the looming existential threat, there is a dire need to re-imagine our existing institutions at the grassroots level. For instance, the Forest department, Krishi Vigyan Kendras and agriculture offices and fire services frontline government departments, along with Gram Panchayats responsible to play a key role in arresting climate change, are badly in need of overhauling and continue to operate with tools and attitude no longer helpful.

Equipping these institutions with quality and adequate manpower should be the starting point. Emerging technologies can enhance the institutional capacities at the local level to offer an effective prevention and mitigation disaster strategy.

A cocktail of community at the driving seat, administrative wings equipped with emerging technologies and imaginative mindset, leveraging Government schemes/ resources, and policies can empower millions of women farmers like Kumari Baruwa to realise the goal of making 3 crore lakhpati farmers as highlighted by the newly appointed Rural Development Minister, Shivraj Singh Chouhan.

For instance, state government schemes like the Solar Micro Lift Irrigation scheme (MLI) under the JOHAR scheme have helped farmers like Kumari Baruwa in Palkot village. She shared that, had JSLPS and active CSOs not installed the MLIs, it would have been almost impossible for them to install themselves as one MLI unit costs between 11-15 lakh. It irrigates 10-15 acres of land of the SMF community. These MLI are being managed by the community through water user groups.

In an internal assessment by TRI in 10 districts of Jharkhand, it was observed that more than 1,200 MLIs have been installed using available funds like DMFT, Innovation fund, Untied grants, JOHAR & Special Central Assistance with potential to irrigate 12,000-18,000 acres of SMF community’s land in last four years.

However, there is also doubt about how many of those units are actually in operation due to poor institutional capacity at the district level. The Indian state has yet to rescue the minds of its grassroots administrator, who is plagued with a palpable superiority complex vis-a-vis citizens and private players. CSOs need to be roped in along with the community to ensure optimal benefits accruing to the community.

For instance, Transform Rural India is proactively engaging as a responsible organisation to support the Government at different levels through its Public Policy in Action Fellowship (PPiAF) vertical and piloting & demonstrating scaleable initiatives through it's Community Action Lab (CAL) in Jharkhand, Chattisgarh, Maharashtra, UP & MP and so on. Investment into assets and institutions and building a synergy between all stakeholders is the need of the hour to ensure that vulnerable groups don’t bear the brunt of climate change.

The Long Road for Gumla and the Globe

As the heat and humidity about to recede with the onset of monsoon this month, Gumla’s women Ragi FPO is set to reach 1.23 cr turnover as it receives the payment against Hans Foundation. Gumla’s Ragi mission is a classic example of Ragi cultivated by small & marginal farmers being converted into value-added products by women-led FPO, generating income for them as well as helping the tribal region to address the menace of malnutrition with potential to address food and nutrition security in the long run. We must build and nurture lakhs of islands of hope like Gumla across the country and the globe to end all forms of hunger and malnutrition by 2030, as per SDG 2.

The Ragi mission initiative in Gumla is a testament to multi-stakeholder convergence wherein community institutions like CLFs, FPOs, District Administration and CSOs can anchor long-lasting, sustainable change while acting in consonance, supported by the policies that rest on the intersection of Samaj, Sarkar & Bazar.

8. Digital Shakti 5.0: National Commission for Women joins CyberPeace Foundation to train 10 lakh women

ET Gov. 6 Jul. 2024

The campaign Digital Shakti, which started in June 2018, aims to help women to be skilled across the nation, raise their awareness on the digital front, build resilience, and fight cybercrime in the most effective ways.

New Delhi, July 5: CyberPeace Foundation along with the National Commission for Women, launched the fifth phase of the Digital Shakti Campaign, a pan-India project on digitally empowering and upskilling women and girls in cyberspace, run in collaboration with the National Commission for Women.

In line with its commitment to create safe spaces for women and girls online, the Commission, along with its partners has launched the fifth phase of Digital Shakti with successful completion of the four phases in the past.

Under this program, the CyberPeace Foundation has established responders in each state that will provide training and enhance the skills of women and girls in Digital skills, Cybersecurity awareness, AI, emerging technologies, etc.

The launch was graced by Rekha Sharma, Chairperson, NCW; Sanjay Seth, Union Minister of State for Defence; S. P. Singh Bhaghel, Minister of State of Fisheries, Animal Husbandry and Dairying; Major Vineet Kumar, Founder and Global President, CyberPeace Foundation; Meenakshi Negi, Member Secretary, NCW; Sangeeta Kumari Rao, Member of Parliament.

Rekha Sharma, Chairperson, National Commission for Women’s (NCW ), said, “This program aligns with the vision of Hon’ble Prime Minister of India-Shri Narendra Modi- Digital India. Despite India being on the verge of becoming the third-largest power in the world, women still face struggles in all fields. The gender gap remains significant, with only 43% of women in the science field, falling short of the desired 50%.”

“Digital Shakti was started in 2018 in collaboration with CyberPeace Foundation (CPF) with the vision of introducing women to the digital era to enhance their skills. This initiative began at Punjab University in 2018 So far, we have trained 6 lakh women on how to be safe in the digital world. In this phase, we aim to increase that number to 10 lakh,” she added.

S. P. Singh Bhaghel, Minister of State of Fisheries, Animal Husbandry and Dairying, said, "I feel honored to be a part of this launch today. The history of women, their sufferings from decades to decades, and the importance of such initiatives in empowering women to overcome these challenges. I extend my heartfelt congratulations to CyberPeace Foundation and NCW for the successful completion of the first four phases of this remarkable program."

Sanjay Seth, Union Minister of State for Defence, said, "The culture of India and the growth of women over the past two decades are truly remarkable. This is a crucial issue that CPF and NCW have thoughtfully addressed with the Digital Shakti program."

Major Vineet Kumar, Founder, and Global President mentioned, "I am honored to conclude this event with a vote of thanks. This is one of the biggest campaigns in the nation, running continuously to make a difference. I extend special thanks to the Aasha workers, NGOs, industry professionals, and all the people associated with the campaign. This program aims to make women resilient and aware in the cyber world."

The launch was followed by an interactive panel discussion on “Empowering women through cyber skills: Bridging the gender gap in Tech and AI” and “Cyber Wellness and Mental health: Addressing the psychological impact of cyber threats” in order to provide keen opinions from experts from the Industry, Government, and Academia to address the issue of Gender gaps from all tangents and provide a whole approach to ensure the participation of Women’s in equal participation.

The second panel focused on the psychological impact of cyber threats, exploring strategies to promote cyber wellness, skilling, and mental health among women. Experts discussed the importance of mental resilience and the need for support systems to help women cope with the psychological challenges posed by cyber threats.

Digital Shakti transforms the digital lives of women across India, reaching over 6.86 lakh netizens through direct sessions and over 2.67 crore individuals through online mediums. In its first phase, the program reached over 60,000 participants, it reached 1,05,000 participants in its second phase, and 1,50,000 in the third phase. Digital Shakti 4.0, which started in November 2022, has already reached more than 5,00,000 women.

9. Jyotiraditya Scindia launches NERACE portal, mobile app for farmers in northeast

ET Gov. 13 Jul. 2024

Union Minister for the Development of the North East Region Jyotiraditya Scindia on Friday launched the North East Region Agri Commodity E-Connect (NERACE) designed to benefit the farmers of the region and help position it as a hub of high-value horticultural products in the international market.

The NERACE app is intended to support agricultural and horticultural products such as spices, fruits, vegetables, pulses, cereals, and minor forest products.

Furthermore, the NE-RACE App is designed to promote Northeast as a reliable partner in the international agricultural value chain.

Taking it to a social media post on X, Scindia wrote, "Digital India for North-East farmers! Delighted to launch NE-RACE App - an online global platform for North East Farmers, which will play a pivotal role in positioning the Northeast as a hub of high-value horticultural products. It will make the farmers of the region not just the producers but also as a reliable partner in the international agri value chain."

Scindia also met the Meghalaya Chief Minister Conrad Sangma and discussed future plans for making Meghalaya more prosperous towards growth. The discussion was focused towards creating Viksit Purvottar (developed Northeast), a vision under PM Modi's Vikshit Bharat resolution.

In a post on X, Union DoNER Minister wrote, "Today with CM Shri @SangmaConrad Ji held a productive meeting with officials of Meghalaya govt, @NEC_GoI And @MDoNER. Together we strategised on key areas of work and future plans. With a focus on "Technology, Environment and Tourism" we strive to strengthen regional connectivity, build robust infrastructure, maximise Meghalaya's competitive & comparative advantages and drive Meghalaya to a more prosperous era of growth. #ViksitPurvottar."

Earlier on Tuesday, the Union Minister Scindia held a review meeting and discussed the 100-day action plan of the Department of Posts.

Under his dynamic leadership and guidance, the Department of Posts aims to transform service delivery and enhance efficiency through key initiatives to benefit the nation and its citizens.

According to the Ministry of Communications, the Department of Posts will be organizing 5,000 Dak Chaupals across the country in 100 days.

"This initiative aims to bring essential government and citizen-centric services directly to rural areas, improving accessibility and convenience. Dak Chaupals will serve as vital links between rural residents and government functions, reducing barriers such as distance and accessibility," it added.

Dak Ghar Niryat Kendra scheme is set to bolster rural exports by supporting small-scale exporters. This initiative provides essential services including documentation assistance, market information, bar-coded label printing, and paperless customs clearance.

10. Indian scientists decode new class of materials for energy harvesting, power generation

ET Gov. 22 Jun. 2024

Chalcogenides can transition reversibly between amorphous and crystalline phases in response to changes in temperature, pressure or electrical fields.

Scientists from Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) Bengaluru, an autonomous institution under the Department of Science & Technology (DST), on Thursday provided groundbreaking insights into a new class of materials for energy harvesting and power generation.

Their work unraveled the electronic mechanisms governing chemical bonding of new class of materials called incipient metals with metavalent bonding (MVB) within a single 2D layer of Group IV “chalcogenides” that can boost energy harvesting and power generation.

Chalcogenides can transition reversibly between amorphous and crystalline phases in response to changes in temperature, pressure or electrical fields.

The study by Professor Umesh Waghmare from Theoretical Sciences Unit at JNCASR, explored the possibility of introducing the metavalent bonding (MVB) within a single 2D layer of Group IV chalcogenides, investigating its mechanisms and the resulting consequences on material properties.

“These materials, termed incipient metals, possess a combination of properties that defy conventional understanding. They exhibit electrical conductivity akin to metals, high thermoelectric efficiency characteristic of semiconductors, and unusually low thermal conductivity, creating a triad of properties that cannot be explained by traditional chemical bonding concepts,” explained Professor Waghmare.

The study, published in Angewandte Chemie International Edition and supported by JC Bose National Fellowship of the Science and Engineering Research Board-DST and JNCASR research fellowship, provides a first-principle theoretical analysis focusing on the bonding nature within five different 2D lattices of Group IV chalcogenides.

This category includes compounds which exhibit remarkable properties, transitioning reversibly from a glassy amorphous structure to a crystalline form in less than 100 nanoseconds when subjected to heating or cooling.

Driven by an idea presented by Professor CNR Rao, the study aimed to unravel the electronic mechanisms governing the chemical bonding in these materials.

The findings, which took nearly two years of theoretical and computational work, have shed light on the unique properties of these materials, challenging conventional chemical bonding ideas.

- Industry and Manufacture

11. Sipcot will add 30 industrial parks across state by 2030’ by Yogesh Kabirdoss

‘Sipcot will add 30 industrial parks across state by 2030’© Provided by The Times of India

Tamil Nadu recorded an investment commitment of more than Rs 6.6 lakh crore at the Global Investors Meet (GIM) early this year, and more is expected over the next few years. To accommodate industry’s needs, the State Industries Promotion Corporation of Tamil Nadu (Sipcot) plans to double the number of industrial parks from 30 to 60 over the next six years, says its managing director K Senthil Raj in an interview to TOI. Excerpts:

What is the size of Sipcot’s current land bank?

We have 30 industrial parks spread over 41,000 acres where more than 3,200 industrial units operate.

What are Sipcot’s expansion plans?

An announcement was made in 2021 that new industrial parks would be created on an additional 45,000 acres of land. Of this, 40,000 acres have been identified and of this 4,000 acres have been acquired and handed over to various industries. The remaining 36,000 acres are under various stages of acquisition. The focus is on developing facilities in backward districts including Ariyalur and Ramanathapuram. Thirty new industrial parks will be created by 2030 across the state.

What types of industrial parks are planned?

These could be either large industrial parks or a standalone park for a specific industry. Of late, Sipcot is adapting to the changing manufacturing trends. Earlier, we used to form only general engineering parks, which allow companies from different sectors to operate. Now, we are looking at creating sector-specific parks, where common facilities including testing centres and cold storages can be set up by Sipcot. We have ventured into parks for electronic manufacturing clusters, food, furniture, medical devices and non-leather footwear in different parts of the state. Sipcot is exploring new sectors including seafood and space.

How is Sipcot making industrial parks future ready?

We are developing industrial parks that are sustainable. For instance, all the 11 parks in Chengalpet, Kancheepuram and Tiruvallur districts will get treated water from the two tertiary treatment reverse osmosis (TTRO) plants in Chennai. We plan to extend this supply up to the Sipcot industrial parks at Cheyyar and Ranipet via Sriperumbudur. We are attempting to shift to renewable energy and encouraging installation of solar panels in industrial complexes.

How will the new industrial parks cater to industries looking to commence operations quickly?

Already, construction has started on plug-and-play facilities in Perundurai, Oragadam and Vallam Vadagal. Industries are looking at spaces where production can commence quickly. So, we have earmarked 15 acres-30 acres for such plug-and-play facilities in every Sipcot industrial park. They will have industrial sheds, power, drainage and water under the PPP model. Industries need to just install their machines to commence operations.

Walk-to-work is catching on. Is Sipcot planning any living space around its industrial parks?

At Vallam Vadagal near Chennai, we are constructing 13 blocks, each a 10-floor industrial housing unit, to accommodate 18,000 employees of Foxconn. Dormitories for workers, with a total of 2,000 beds, will be built at Gangaikondan, Siruseri, Cheyyar and Shoolagiri in phase I. This is the first time Sipcot is developing such facilities and they will be expanded in the future.

12. Nokia likely to Shift Bulk of its Global Design Capacity to India

ET, 21 Jun 2024

Nokia, maker of tech and telecom enterprise equipment, is considering a reorganization proposal that could involve shifting a majority of its global design capacity to India, sources aware of the development told ET.

Currently, Nokia is present at five locations in Gurgaon, Noida, Mumbai, Chennai and Bangalore, while it also has two R&D centres at Chennai and Bengaluru. Sources said the firm is mulling moving most of its design presence to India owing to the talent for design that exists in the country. “A majority of their design work is done in Finland, the UK and the US in some parts,” one source cited above said. “They want to move the major portions here.” ET has also learnt that some of the top executives of the firm are likely to be visiting India next week.

Tamil Nadu is likely to be the destination that they zero in on, some sources said.

“Nokia could look to begin designing telecom network infrastructure equipment from its facility in Chennai,” another person said. “As of now, they are only assembling and they recognise the need to localize more. Nokia, for instance, was the first to come out with 5G radio in India and they have also been doing things with MIMO and the transport network elements. So they do have plans to scale up the value chain.”

Multiple-Input Multiple-Output (MIMO) is a wireless technology that uses multiple transmitters and receivers to transfer more data at the same time.

It is a primary tool for advancing all aspects of wireless communications and plays a substantial role in 5G technology.

Though the company is keen to double down on manufacturing in India too, a design push is one that the company is keener on till demand picks up, sources said. Queries sent to Nokia remained unanswered as of press time Thursday.

“Nokia has continued to add more Indian component suppliers through their localisation program, which will play a crucial role going forward,” Tarun Pathak, Research Director at Counterpoint told ET.

13. A young Indian luxury shoe brand from Chennai is acquiring a global appeal

30 Jun. 2024, Hindustan Times, Murali K Menon

Bridlen sources its leather from artisanal tanneries such as Charles F Stead in England and Mastrotto in Italy, and its lining leathers are made in Leather Working Group-certified local tanneries. Most of the materials that go into his shoes are imported simply because the kind of quality he seeks is not available as yet in India, says Affan, who describes Bridlen’s style as a “British-Japanese mix.”

The Japanese influence and aesthetic comes from Jose Maria Watanabe, who co-founded Bridlen with his late father Hasan. The Japanese shoemaker has shaped the brand’s distinctive philosophy and mentored Affan on shoe- and last-making. “The Japanese are known to make things better than the original. They take British styling and make it better, same with American styles. That’s what we have done. We take a lot of our inspiration from the British, which means our lasts are rounded, much sturdier. But they are also sexier, more aggressive,” says Affan.

About the brand

Bridlen, which employs 50 people, makes about 10,000 pairs of Goodyear-welted shoes annually. Its shoes are priced between ₹9,000 and ₹49,900. Its made-to-order shoes are delivered in about four to six weeks, and cost around one-third of what you would pay for a similar shoe from a Western heritage brand. Its competitors in the made-to-order category globally include Swedish company Myrqvist, TLB from Spain, and Allan Edmonds from America.

The 37-year-old, a graduate in recycling from the London Scool of Economics, has a clearly articulated position on the sustainability of leather. Over 90 percent of Bridlen’s raw materials is either recycled or repurposed.

"Leather making is basically a recycling industry. If you are not going to use skin to make leather out of it, or if you don’t have tanneries, then it simply goes into a landfill,” he says. “If we are talking about net use of resources required to create this leather, then you have a product that is more sustainable than the alternative, which is materials derived from vegetable extracts.”

Japan and Europe might be its biggest markets, but the response from within India in the last four odd years has been pleasantly surprising for Bridlen. The men who buy their shoes are usually customers of brands such as John Lobb and Crockett & Jones and their taste varies widely. Bangaloreans, especially those from the IT industry, and a majority of their patrons in Chennai exhibit a market preference for unlined loafers. “Delhi is mostly classic blacks, oxfords and the like, maybe because we have a lot of lawyer clients. Mumbai’s bankers and financiers are a touch more flamboyant – suits with chalk stripes and burgundy shoes.”

According to economic think tank Global Trade Research Initiative, India is the second-largest global footwear producer after China, and the world’s ninth-largest exporter. But with shoe manufacturing steadily moving out of India to Bangladesh and Myanmar, we are also losing the cost-arbitrage advantage, notes Affan, who would rather focus on honing the shoe-making knowledge and strengthening the craft base built over the last 60-odd years. “We have to keep moving higher up the value chain – and creating brands that we are proud of is among the best ways to signal our intentions and expertise.”

14. Abhay Kumar Singh Secretary IT Department Bihar: ‘Why not Bihar?’ The campaign to attract investments, grow IT & electronics sector in the state

ET Gov. 06 Jul. 2024

"The provisions of our IT policy are designed to facilitate ease of doing business and provide growth opportunities for the IT enterprises which invest in Bihar": Abhay Kumar Singh.

“During the pandemic, several IT professionals returned home and were on the lookout for opportunities in Bihar. Understanding the potential of the IT sector to create good jobs for skilled professionals, we have developed a strategy to kickstart a vibrant IT industry in the state. We have launched a competitive IT policy which reduces the cost of doing business.

“The Government of Bihar has set up eleven centres of excellence for research and development in emerging technologies. We are collaborating with C-DAC to foster advanced research, innovation, and product development. These initiatives will provide the much-needed impetus for the expansion of the IT and electronics sectors in the state.

This was stated by Abhay Kumar Singh, Secretary, Information Technology Department, Government of Bihar, and Managing Director, Bihar State Electronics Development Corporation (BELTRON), in conversation with Anoop Verma, Editor (Desk), ETGovernment. Abhay Kumar Singh describes the vision of the Bihar Government to grow the IT industry in Bihar.

Edited excerpts:

Recently, the Bihar government announced its IT policy for promoting IT & electronics industry in the state. What incentives are you offering to the industry under this policy?

Recognising the importance of the IT industry and its role in creation of new job opportunities, we intend to attract investments from the global IT enterprises. The provisions of our IT policy are designed to facilitate ease of doing business and provide growth opportunities for the IT enterprises which invest in Bihar. We are offering a capital subsidy of 30% of the fixed capital investment up to ₹30 crore. This includes land, building, plant and machinery. There is interest subvention subsidy–10% interest subvention up to 50% of project cost or ₹40 crore for 5 years.

There is a provision for lease rental subsidy to the tune of 50% on the lease rental amount. The energy bill subsidy entails 25% reimbursement of the energy bill. Since the IT industry is employment intensive, we are offering employment generation subsidy which allows for 100% reimbursement of the employer’s contribution of ESI and EPF, up to ₹5,000 per employee per month. All these incentives are for a period of five years and can be accessed through a single unified portal, which enhances ease of doing business and transparency.

The IT policy mandates that for investments above ₹100 core or employment generation of 1000, the state government will offer tailor-made packages to subsidize the overall cost of the project. What is the nature and scope of this incentive that you are offering to large investors?

The customized tailor-made package will be over and above the incentives prescribed in the IT policy. This will include enhancing the quantum or duration of time under the existing heads such as capital subsidy, interest subsidy, power subsidy and employment subsidy. Additionally, investors can seek any specific regulatory support or incentive that will make the project viable.

The IT industry will need significant amount of land and developed commercial property to set up their campuses. What is your plan for providing land and commercial infrastructure to the industry?

In anticipation of significant investments, the government has earmarked land parcels for the electronics and IT industries across the state. More than 100 acres of land in Rajgir and more than 70 acres of property in and around Patna are available for allotment to IT and electronics investors. Auxiliary sectors such as data centres and business process outsourcing enterprises have shown an overwhelming interest to collaborate with us in building the state's IT ecosystem.

The technology revolution that has swept several states in India seems to have left Bihar untouched. Do you think that this IT policy and the other schemes that the Bihar government is starting will improve the situation in the state and make it an attractive destination for IT and electronics investments?

Over the years, Bihar has contributed significantly to the large pool of talented professionals that India is proud to have in almost all sectors. Our talented youngsters have made a profound impact both domestically and internationally, propelling the digital and technological revolution.

During the pandemic, several IT professionals returned home and were on the lookout for opportunities in Bihar. Understanding the potential of the IT sector to create good jobs for skilled professionals, we have developed a strategy to kickstart a vibrant IT industry in the state. We have launched a competitive IT policy which reduces the cost of doing business.

The Government of Bihar has set up eleven centres of excellence for research and development in emerging technologies. We are collaborating with C-DAC to foster advanced research, innovation, and product development. These initiatives will provide the much-needed impetus for the expansion of the IT and electronics sectors in the state.

What steps are you taking to ensure that the various proposals in the IT Policy are implemented in a time-bound manner?

To track the whole investment life cycle—from ‘intention to invest’, ‘anchoring the investment’ to ‘disbursement of incentives’—the department has developed a CRM for proactive engagement with the Investors. Also, the state has a well established and robust single window system, which is backed by statutory act, for giving approvals and clearances under a single roof.

The Department of IT has also set up an investment promotion cell to assist the investors with regulatory clearance, land visit, identification and allocation, and incentive programme utilisation in order to provide end to end support to investors. Additionally, monthly meetings with key stakeholders both from the industry and the department will be held to discuss and expedite investment proposals. A simplified and robust regulatory framework is what we intend to establish through this policy.

IT and electronics are two of the biggest creators of high-quality jobs. What kind of job growth can we expect once the proposals under the IT policy get implemented and investments in the sector starts to flow in?

The exponential growth in India’s IT sector has placed our country among the fastest and most technologically advanced economies of the world. About 7-8% of India's GDP comes from the IT sector, which creates a large number of job opportunities. As the growth in the IT sector continues, and new emerging technologies continue to drive transformation in the global digital landscape, the need for a skilled workforce continues to grow.

Bihar has a large pool of young talent. We expect significant employment growth in Bihar and in other states of the country. With the flow of investments in the ESDM sector, we expect the demand of workers to increase. There will also be a spurt in the demand for female workers. Bihar has a pool of over two lakh female workforce having undertaken skill training under Bihar Skill Development Mission and other skill initiatives.

One of the issues in attracting investments is the brand value. Are you also making efforts to build a brand for Bihar to attract investors?

People often ask, ‘Why Bihar?’ We respond with ‘Why not Bihar?’ This campaign highlights the efforts the state government is making to attract investors. It is not just the industry department but also the IT and tourism departments, among others, that are working hard to bring investments to Bihar. For example, we are going to various metro cities to pitch to IT investors, and we are making similar efforts in other states as well.

One of the problems that investors in the IT sector face in Bihar is the lack of good infrastructure. What steps are you taking to encourage real estate investments in creating high quality IT towers and parks?

In terms of infrastructure, Bihar is home to more than twelve IT parks, which are either operational or about to be made operational, with more than ten lakh sq ft ready to occupy office space. In addition, the government has already initiated discussions with a number of real estate enterprises to establish an IT city on more than 100 acres of land in Rajgir and multiple IT Parks in Patna. The state government will soon be developing an iconic IT tower in the heart of Patna. For the manufacturing sectors, BIADA has developed more than 24 lakh sq ft shed space across the state at a very attractive price. To enhance the marketability of IT plug & play Infrastructure, we are providing a 50% lease subsidy for 5 years to IT units.

15. H2GO: India-made Electrolysers Set for an Early Start

ET, 10 Jul. 2024

Over half the eight companies that won bids in January for electrolyser manufacturing under the production-linked incentive (PLI) scheme, have conveyed to the government that they will be able to commission their units by next year, ahead of the 2026 deadline, said people aware of the development.

Agencies

This will be a boost to India’s green ambitions as electrolysers are essential for green hydrogen production.

John Cockerill Greenko Hydrogen, L&T Electrolysers, Reliance Electrolyser Manufacturing and Adani New Industries see their manufacturing units ready by 2025.

“Most of the allottees will be able to commission their facilities much ahead of the deadline and have conveyed this to the government,” said a senior government official. Jindal India, Ohmium Operations, Advait Infratech and homiHydrogen are others that won bids.

Companies mentioned above didn’t respond to queries.

Electrolysers split water into oxygen and hydrogen using electricity — a process known as electrolysis. Green hydrogen is a gas made by electrolysers using power from renewable energy sources and is essential for decarbonising industries.

Currently, India is reliant on the global market to source electrolysers for its green hydrogen projects. To counter this, as well as reduce the cost of green hydrogen production, the Solar Energy Corporation of India, in July 2023, issued a request for selection of electrolyser manufacturers to set up 1.5 gigawatts (GW) of capacity.

Industry players said the current price of an electrolyser in the global market is $600 (₹50,000) per kilowatt (kW). Through the PLI scheme, this price will be brought down to $564-570 (₹47,000) in India. However, an electrolyser in China is still cheaper at $400 (₹33,000) per kW.

“Electrolyser manufacturers are projected to achieve a 7-10% reduction in total system costs for the first five years, with ₹2,960/kW ($36/kW) being the average annual realisable base incentive,” according to a report by the Institute for Energy Economics and Financial Analysis.

“Most of us who won the bids had prior tie-ups with electrolyser technology companies,” said an executive at one of the participating companies. “Some had even secured technology licence agreements before participating in the tender, so we will be able to launch our electrolysers before the deadline.”

While Greenko partnered with John Cockerill, a global leader in electrolyser manufacturing, Reliance Industries partnered with Danish company Stiesdal for the development and manufacturing of hydrogen electrolysers. Reliance has also entered into a technology licensing agreement with Norway's Nel ASA for its alkaline electrolysers in India.

L&T commissioned its first indigenously manufactured hydrogen electrolyser at the green hydrogen plant in Hazira, Gujarat on March 1. With a power capacity of 1 MW (expandable to 2 MW), the electrolyser is equipped with two stacks and an electrolyser processing unit that’s indigenously manufactured and assembled. The company used alkaline electrolyser technology from McPhy Energy, France.

Adani New Industries has tied up with multiple technology partners to build its facility. Ohmium has been operating an electrolyser manufacturing plant since 2021. “With lower cost of electrolysers and India's low-cost renewable electricity, India's green hydrogen production could become competitive with other fuels,” said the company official cited above.

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

16. Demand Momentum to Sustain in Travel Industry for 4-5 Yrs

ET, 24 Jun. 2024

New Delhi | Mumbai: The demand and spending in the travel industry will continue to grow at the current pace for the next four to five years and only a black swan event could derail the momentum, said Madhavan Menon, executive chairman of Thomas Cook (India), in an interview to ET.

“Once people discover that they can afford holidays—whether short, medium, or long—they are more likely to take them. The purchasing power has increased and not decreased. The theory that life is too expensive doesn't seem to be deterring anyone,” he said. “I believe this trend will continue for the next four to five years. It will take a black swan event to stop it. We've had one black swan event (Covid-19) that actually worked in our favour. There could be another black swan event that we cannot foresee, but aside from that, this growth trend is likely to persist,” he added.

He said Covid-19 triggered an evolution in travel and taught companies the importance of productivity.

“Companies have downsized, upgraded technology, and improved productivity. Most travel companies see their top line growing by 20% or more. If they manage their costs well, the bottom line explodes. We are no different because the productivity benefits fall to the bottom line, and the increased margins are significant,” he said.

“People have asked about expanding margins and, I think, the margins are here to stay. The margins are not going anywhere. Whether we look at Sterling, Thomas Cook, or other companies, we are all operating at higher margins than before. This is due to higher gross margins from increased commission rates and higher EBITDA margins from cost savings,” he added.

Menon expects blended growth rates of 15-20% annually for the company's eponymous Thomas Cook brand.

“We already have two strong brands in the outbound market: Thomas Cook and SOTC. Sterling is also growing steadily. If we consider our core brands—Thomas Cook, Sterling, Sita, and SOTC, 70% to more than 80% of our profits come from these four companies. As long as these companies continue to grow, they will drive our overall growth,” he said.

“For Thomas Cook, I expect blended growth rates of 15% -20% annually over the next three to five years. This includes both foreign exchange and travel sectors. If we manage our costs effectively, this growth will translate directly to the bottom line. This isn't just a short-term trend; we've seen it in 2022 and 2023, and we continue to see it in 2024,” he added.

He said with Thomas Cook and SOTC handling outbound travel, and Sterling growing in the hospitality sector, the company is well-positioned for sustainable growth.

Menon said India has suddenly become a source market because Indians are partly not satisfied with domestic travel options and post Covid-19, the Chinese travellers have not come back in the same manner.

“Additionally, it is often the same price or cheaper to travel to Thailand or Dubai than it is to travel internally. This multiplicity of factors is influencing travel patterns. People are taking shorter holidays. They are saying that if they pay ₹12,000 to travel to Delhi, they might as well pay a little more, around ₹19,000, to travel to Dubai,” he said.

“In Dubai, they can stay in a hotel of their choice, which may cost as much as any other hotel in India. Weekend trips, which were restricted earlier, have now become the norm,” he added.

17. Taller, Stronger, Sharper Desi Pharma is On a Roll

ET, 24 Jun. 2024

India saw an explosion of pharmaceutical generic brands of over ₹100 crore in sales in the last 15 years. These brands now constitute 44% of the around ₹2-lakh-crore domestic formulation market and are growing faster than the market rate, according to a report by investment banking firm Avendus Capital.

Of those 388 brands, 25 have sales above ₹500 crore and 79 above ₹250 crore. There weren’t any pharmaceutical brands in India that had sales of over ₹500 crore in FY09.

The report says domestic formulation makers have attracted large strategic and private equity investments in deals worth over $14 billion over the last 6 years.

“With the expansion of trade generic and Jan Aushadhi, we expect a 30% volume contribution from these channels over the next decade,” said Anshul Gupta, managing director and head of healthcare investment banking at Avendus.

18. STPI’s 33-year journey: From boosting software exports to making India the global hub of high-tech startups

ET Gov. 7 Jul. 2024

"In FY 2023-24, the total exports from STPI registered units was ₹9.25 lakh crore": Arvind Kumar, Director General, Software Technology Parks of India (STPI)

“In 2023, STPI launched the Leap Ahead initiative under the Next Generation Incubation Scheme (NGIS). There are three key pillars to this initiative: first pillar is intensive mentorship, second pillar is global connect and the third pillar is funding. As the name “Leap Ahead” suggests, the aim of this initiative is to identify startups that are capable of making giant leaps, in terms of growth and innovation, and support them in accelerating their development. The initiative has proved to be highly popular with startup entrepreneurs.”

This was stated by Arvind Kumar, Director General, Software Technology Parks of India (STPI), in conversation with Anoop Verma, Editor (Desk), ETGovernment. In the interview that follows, Arvind Kumar sheds light on the work that STPI is doing to promote equitable and inclusive IT-led growth pan-India, and promote software exports as well as innovation and software product development.

Edited excerpts:

Recently, STPI celebrated its 33rd Foundation Day. How do you see the achievements of STPI in these 33 years?

STPI was established by the Government of India, under the Ministry of Electronics and Information Technology (MeitY), in 1991. Then the focus of the organisation was to promote software exports from India. In this objective, STPI has achieved landmark success. Currently, India’s total software exports amount to over $200 billion. More than half of this export is being executed through the STPI registered units. In FY 2023-24, the total exports from STPI registered units was ₹9.25 lakh crore.

Another big achievement of STPI is in the area of developing new centres. We started our journey 33 years ago with three centres. Today we are operating 65 centres in 65 different cities and towns in the country. The best thing is that out of these 65 centres, about 57 are located in tier 2 and tier 3 cities. By operating these centres in tier 2 and tier 3 cities, STPI is enabling inclusive and holistic IT-led development throughout the country.

One of the mandates of the STPI is to encourage and support startups in the country. What are your key initiatives for supporting startups?

To support the startups, STPI is running very successful schemes like the Next Generation Incubation Scheme (NGIS). At present, NGIS is operating from 12 STPI centres: Agartala, Bhilai, Bhopal, Bhubaneshwar, Dehradun, Guwahati, Jaipur, Lucknow, Prayagraj, Mohali, Patna and Vijayawada. Under this scheme we are providing the startups with a funding support of ₹25 lakh. Around 530 startups have been supported under NGIS, while 325 startups have received stipends and 106 startups have received funding. These startups have created 1070 products and they have filed 168 patents.

STPI has launched the Leap Ahead initiative to enable startups to get access to investment, mentorship and global connect. How is this initiative working? How many startups have benefited through this initiative?

On November 6, 2023, STPI launched the Leap Ahead initiative under the Next Generation Incubation Scheme (NGIS). There are three key pillars to this initiative: first pillar is intensive mentorship, second pillar is global connect and the third pillar is funding. As the name “Leap Ahead” suggests, the aim of this scheme is to identify startups with growth potential and support them in accelerating their development. The scheme has proved to be highly popular with startup entrepreneurs.

For the first cohort of Leap Ahead, we selected 87 startups out of the 546 applications received from 27 states. These 87 startups were mentored for over three months, between January and March 2024, by more than 60 mentors. We took 22 of these startups to Silicon Valley where they received favorable responses from global investors. The startups have received a commitment of over ₹55 crore, and seven startups have received funding close to ₹7 crore till date.

STPI has launched several Centres of Entrepreneurship (CoEs). How much success have these CoEs achieved in creating new enterprises and entrepreneurs in the country? Are you planning to launch more CoEs?

The total number of Centres of Entrepreneurship (CoEs) that STPI is currently operating is 24. All these CoEs are domain specific, which means that each one of them provides technical assistance in a certain core area. The startups that come to our CoEs have access to 360 degree support in terms of lab infrastructure, mentorship, IP filing, go to market strategy and market access. The key support areas are the laboratory support and the mentorship support. Till date the STPI CoEs have supported 552 startups, which have created 644 products, and done 336 IPR filings. They have been instrumental in providing gainful employment to thousands of talented youngsters.

Are you planning to launch more CoEs?

We are constantly endeavoring to take the CoE model to different cities and towns in the country. A number of our new CoEs are at various stages of development currently at various locations. The model of the CoEs is such that it is almost like a private venture. We want the startups to have full exposure to the industry–this is why we give the position of the Chief Mentor to very competent industry professionals. This industry oriented person is the one who guides the startups. The CoEs also invite the industry associations, academic institutions and experts to interact with the startups and provide valuable lessons and advice.

STPI has been endeavoring to transform the country into a software product nation as envisaged in National Policy on Software Products (NPSP) 2019. How much success have you achieved in this endeavor?

In the area of software as a service, India is doing very well. The Indian IT sector’s revenues in FY 2023-24, was $254 billion which represents a growth of about 3.8% over the revenue of $245 billion in FY 2022-23. On the software product side, we are now getting ready to make good progress. There are various reasons for our past deficiency in the software product sector. But in times to come things are set to change. The Centres of Entrepreneurship are working to encourage software product development in India. The Government as well as the industry players are focused on software product development and I am hopeful that in the next five to six years, we will see a lot of new developments happening in this area.

19. Uttar Pradesh is on way to becoming India’s semiconductor hub: Chief Secretary Manoj Kumar Singh

ET Gov. 14, Jul. 2024

In a giant leap for India’s semiconductor industry the Union Cabinet chaired by Prime Minister Narendra Modi approved, in February 2024, the establishment of three semiconductor units under ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’.

India’s demand for electronics products continues to grow at a phenomenal pace and the Central Government wants to ensure that the semiconductors are produced in the country and there is less dependence on imports. The Uttar Pradesh government has launched its own UP Semiconductor Policy - 2024. This ambitious policy is designed to boost local semiconductor manufacturing, enhancing India’s strategic independence in critical technology sectors.

Manoj Kumar Singh, Chief Secretary of Uttar Pradesh, in conversation with Arpit Gupta, Assistant Editor, ETGovernment, sheds light on the Government of Uttar Pradesh’s vision of transforming the state into a hub of semiconductor and electronics manufacturing.

Edited excerpts:

Uttar Pradesh has been trying to attract investments from world’s leading semiconductor players. What is the status of semiconductor manufacturing projects in the state?

The Uttar Pradesh government has envisioned developing the state into a semiconductor manufacturing hub of India. We have received four proposals totalling around Rs 40,038 crore and one of the proposals - Tarq Semiconductor Private Limited (a subsidiary of the Hiranandani group) - would be placed before the empowered committee for clearance.

Tarq Semiconductor is expected to invest Rs 28,440 crore while Kaynes Technologies subsidiary Kaynes Semicon is set to invest Rs 4,248 crore. Aditech Semiconductor has proposed an investment of Rs 3,751 crore and Vamasundari Investment Delhi has planned to invest Rs 3,599 crore. The projects are expected to create over 32,000 jobs in the state.

In the area of mobile manufacturing, Uttar Pradesh is doing quite well. How do you view the consumer electronics industry in the state?

Uttar Pradesh’s conducive business environment and proactive policies have attracted significant investments in the IT and Electronics sector. The state leads the nation in mobile phone manufacturing, producing 55% of all mobile phones and 60% of mobile components nationwide. Beyond mobile phones, Uttar Pradesh’s electronics manufacturing sector is diversifying into consumer electronics, LED lighting, electronic components, and IT hardware.

Over 200 companies from the Electronics System Design and Manufacturing (ESDM) sector operate in the state. Leading companies such as Vivo, Oppo, Samsung, Lava, Haier, and LG, along with component suppliers like Holitech, Transsion, Jahwa, Sunwoda, and Samkwang, have established their units in Uttar Pradesh.

The Japanese conglomerate Marubeni Corporation has expressed interest to develop a next generation industrial park in Uttar Pradesh. How will it transform the technological manufacturing landscape of the state?

Headquartered in Tokyo, Marubeni Corporation, a Japanese conglomerate of 463 companies has expressed interest to develop a next generation industrial park. The company provides a state-of-the-art plug and play model for new generation business players besides promising FDI and an assured tenant base. The matter would be evaluated and discussed in detail before a call on their proposal is taken.

The Marubeni Corporation, having presence in 65 countries, operates a diverse range of businesses globally in areas like lifestyle IT solution, food agribusiness in consumer products category, forest products, chemicals, besides having a presence in energy, infrastructure, power, aerospace and ships, finance and real estate, industrial machinery and mobility.

The project is estimated to offer a range of quantifiable and qualitative benefits with potential to transform the technological manufacturing landscape of the state and that of the country through job creation and bringing a direct investment of about USD 340 million, besides FDI to the tune of USD 1 billion.

UPEIDA has signed MoUs with ETH Zurich and RTDT Laboratories to improve the riding quality and riding comfort in Ganga Expressway using Aero sense technology & AI sensor module. Can you tell us more about it?

Two landmark agreements have been signed between Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) and ETH – Swiss Federal Institute of Technology, Zurich – One of the World’s top universities and RTDT Laboratories AG (a spin-off company of ETH Zurich) to improve the riding quality and riding comfort using Aero sense technology & AI sensor module, in Ganga Expressway for total length of 594 Km from Meerut to Prayagraj.

Uttar Pradesh will become the first state in India to implement this technology in their expressways. Once this pilot project is successful, we plan to implement this technology across all expressways in Uttar Pradesh, which will benefit lakhs of consumers using these expressways for their commute.

How are you harnessing the use of technology to boost On-Time Delivery (OTD) goals?

Several initiatives have been undertaken to harness the use of technology to boost our On-Time Delivery (OTD) goals.

Lucknow - AI City: Aligned with the vision of the Government of India, the Government of Uttar Pradesh aims to strengthen the AI innovation ecosystem within the state. Uttar Pradesh plans to build the country’s first AI city in Lucknow to house and promote the AI ecosystem. The AI City is envisioned to nurture and promote the AI ecosystem within the state and to develop the city as a new technology hub.

Online Land Bank Integration: Land bank details from the IDAs and districts have been incorporated and made available online through integration with the portal. This allows investors to see and check available land easily.

KPIs for Manufacturing Sector: Key performance indicators (KPIs) identified for the industry sector have been digitally incorporated into the portal and are being monitored regularly. This helps in enhancing the manufacturing sector through better tracking and analysis.

Dedicated OTD Portal: A separate portal has been dedicated to OTD, which includes all the details, KPIs for all sectors, their growth, and tracking.

Survey App: A survey app has been designed to check the functional status of the factories allotted to investors, ensuring real-time updates and efficient monitoring.

What is the progress of projects launched during the Ground Breaking Ceremony (GBC 4.0)?

The latest edition of the Global Investors’ Summit, held in February 2023, witnessed the signing of over 27,000 MoUs with an estimated investment size of approximately Rs 34 lakh crores, creating 1.12 lakh employment opportunities. The state government organised a grand Ground Breaking Ceremony on 19th February, 2024, in Lucknow. We have been able to implement more than 14,000 projects with an estimated investment size of more than Rs 10 lakh crores to create over 33.50 lakh job opportunities.

20. DGCA approves Electronic Flight Folder for IndiGo airlines, Government News

ET Gov. 13 Jul. 2024

The adoption of EFF by Indigo would result in a reduction in carbon emissions by approximately 800 tons of greenhouse gases annually equivalent to saving 2,200 trees every year.

Setting new standards in aviation efficiency and sustainability, the Directorate General of Civil Aviation (DGCA) on Friday approved Electronic Flight Folder (EFF) for IndiGo airlines.

The Electronic Flight Folder (EFF) represents a pivotal shift away from traditional paper-based processes in flight planning and documentation. This innovative technology seamlessly digitizes and consolidates all essential flight plan documents and associated paperwork into a unified digital platform.

An Electronic Flight Folder is a visual collection of pre-flight briefing data that is updatable and forms the basis of the pilot's digital briefing pack on their EFB device.

The EFF consists of data such as operational flight plans, weather and NOTAMs, weather charts, airfield data, ETOPs and more. All this data is automatically collated into an EFF file and integrated into an EFB app.

Electronic flight folders contain near real-time data that is commonly used and integrated within electronic flight bags (EFB), via an iPad or tablet device.

This will improve access to a wide range of information which includes, but not limited to, navigation charts, weather data, aircraft manuals, and performance calculations.

It also plays a role in enhancing fuel efficiency. The use of EFF technology allows airlines to use the latest data to optimize flight paths thereby reducing fuel consumption, and ultimately, lowering emissions. This would potentially lead large amount of fuel saving per annum.

One of the paramount benefits of EFF is its substantial contribution to improving the carbon footprint. By eliminating the need for paper documents, the reliance on physical resources is reduced and the environmental impact associated with paper production and disposal is correspondingly decreased.

This milestone underscores the collective commitment of DGCA and all aviation stakeholders in driving innovation and promoting sustainability in aviation. Digital transformation, is setting new benchmarks for operational excellence and efficiency in flight operations.

The adoption of EFF by Indigo would result in a reduction in carbon emissions by approximately 800 tons of greenhouse gases annually equivalent to saving 2200 trees every year.

India and the World

21. Brookfield Targets $10b Investments in Renewable Sector

ET, 24 Jun. 2024

Canada’s Brookfield Asset Management Inc. is aiming to more than triple investments in India’s renewable energy sector to over $10 billion in the next three-four years.

It’s also looking at acquisitions in the segment besides exploring opportunities in electric vehicles (EVs) and green hydrogen. Brookfield is the second-largest investor in India’s green energy assets.

“In terms of size and scale, we are close to $3 billion AUM (assets under management),” Nawal Saini, managing director of Brookfield’s renewable power and transition group, said in an interview. “We think this will be well over $10 billion in the next three-four years as we deploy more capital in just these existing platforms.”

“I am not even accounting for incremental growth that will come in through incremental M&A or what we do outside of these platforms,” said Saini. The Canadian investor has been rapidly expanding in the space in the past few years.

“We have built a business of scale in India in a relatively short time frame, with our platforms collectively having a portfolio of over 25 GW and growing,” Saini said. “That makes us the second largest renewable business in the country in the private sector.”

The 25 GW portfolio is spread across operational, under-construction and late-stage assets. Operational assets are at 8 GW, up from 300 MW at the end of 2017.

Adani Green currently has the largest renewable portfolio of 11 GW operational assets and aims to hit 50 GW by 2030.

Brookfield invests in Indian renewable space through the Brookfield Global Transition Fund (BGTF I), a $15 billion fund raised in 2022 and deployed fully. Currently, it’s raising a second fund, BGTF II, which is likely to be as much as $17 billion, as per media reports. In February 2024, it announced a first close of $10 billion in the fund. About 10% of BGTF I has been deployed in India. It’s expected to deploy more from BGTF II in the country.

Brookfield has also been active on the deal front. It acquired wind farms from Hyderabad-based Axis Energy Ventures for Rs 500 crore in 2019. It also picked up 51% in CleanMax Enviro in 2023, with an equity investment of Rs 3,000 crore. Brookfield is set to acquire a controlling stake in commercial and industrial (C&I) platform Leap Green Energy for $500 million, said people with knowledge of the matter.

“We are always keen to acquire high-quality development engines of scale and grow them further, leveraging our strength of access to capital, operating expertise and global procurement efficiencies,” Saini said.

Brookfield is closely monitoring the EV charging space. The new transition fund will invest in business transformation and sustainable solutions other than clean energy sources. The sustainable solutions will include EV charging, carbon capture, EV vehicles and other technologies.

“I think India is just a question of scale in the EV sector,” Saini said. “Is there an opportunity which is large enough to warrant our capital and our bandwidth and our sort of expertise? We would say EV charging is still emerging. It is still not there at the scale that you would want it to be.”

According to Saini, Brookfield is also open to exploring partnerships in the EV space in India.

“The kind of transaction that will be tough for us is to take pure consumer risk on electric vehicles, volume and price risk,” he said.

22. Joint task force to strengthen Indo-Norway collaboration on Blue Economy: Jitendra Singh

ET Gov. 15 Jul. 2024

Union Minister Dr Jitendra Singh holds a meeting to review the Indo-Norway collaboration on Blue Economy with Norwegian Ambassador to India May-Elin Stener in New Delhi on Friday.

Union Minister of State (IC) for Science and Technology, Earth Sciences Jitendra Singh said, “The joint task force (JTF) on Blue Economy (BE) to be strengthened by reinforcing our cooperation." The task force is co-chaired by the Secretary, Ministry of Earth Sciences, Government of India.

Referring to the ‘India-Norway Integrated Ocean Management and Research Initiative’, the minister stated that "we need to further deepen our collaboration." He also shared with the ambassador that India is carrying out a deep-sea mission by sending three Indians to deep sea which will open a horizon of opportunities in mineral exploration and seabed mining.

“Prime Minister Narendra Modi’s leadership enabled India’s journey to marine and ocean exploration” is the reason for the gathering pace in this sector as described by the Earth Sciences Minister. He also said, “Blue economy will foster India’s growth story in the coming years.” He highlighted the deployment of IndARC in the Arctic-India’s first sub-surface moored observatory in the polar waters, roughly halfway between Norway and the North Pole as India’s major scientific accomplishments.

Norwegian Ambassador to India May-Elin Stener said, “Norway has Technology and India has Scalability.” She appreciated the efforts of the minister for his increased cooperation, and able guidance to the projects under the Earth Sciences Ministry.

May-Elin Stener proposed to enhance the ties in fields of science and technology along with ongoing marine and polar studies. The ambassador recalled their Prime Minister’s remarks on India and Norway being neighbors in Antarctica as far as the scientific research and establishing research facilities are concerned.

Dr Singh highlighted that his Earth Sciences Ministry has supported the Indo-Norwegian Fellowship Program which enabled three students to work on Arctic and Antarctic Glaciology funded by the government.

The Earth Sciences Minister mentioned that an MoU was signed between the National Centre for Polar and Ocean Research (NCPOR) and Norwegian Polar Institute (NPI) for close collaboration in various fields of polar sciences at the 46th Antarctic Treaty Consultative Meeting held in Kochi.

Jitendra Singh recalled the draft framework jointly developed by India and Norway for Marine Spatial Planning (MSP). Going further he categorically stated both India and Norway look forward to the upcoming UN Conference on Oceans (UNOC-3) in Nice, France 2025.

23. India can be a Third Growth Pillar with US, UK: TCS CEO

ET, 15, July 2024

I don’t know what is wrong in doing priced programs in India (where) we are also delivering margins. India is a good market, and we must be present here as it is one of the few emerging markets that is growing. Future growth will come from emerging markets and if companies like ours don’t invest (here) it will be a huge, missed opportunity.

Emerging markets like India will be very important for the future growth of Tata Consultancy Services and not operating in these markets will be a lost opportunity, chief executive officer and managing director K Krithivasan said. India’s largest software exporter, which reported better than expected revenue growth in the first quarter of this fiscal, is expecting greater clarity on technology spends once the US completes its presidential elections in November and the much-anticipated interest rate cuts by its Federal Reserve kicks in by year end. In an interview with Sameer Ranjan Bakshi and Surabhi Agarwal, the 59-year-old CEO pointed to his company’s deepening engagement with other Tata Group firms. The company recently inked a $ 1 billion partnership with Tata subsidiary — JLR (Jaguar Land Rover). Edited excerpts:

There has been criticism over the BSNL deal having contributed much of the incremental growth for TCS in the just concluded quarter?

How do you see the macro environment and what does FY25 look like?

Things have not changed much but we believe this year is better than last year. But if you look (specifically) at the US, people are expecting (change) after the Federal Reserve announcement in terms of jobs and some cuts in interest rates. Similarly, once the Presidential elections are complete in November it will give them a direction on which way the overall economy will go. I feel that the amount of certainty once the elections are over is the most important thing. Once we know what they’re likely to get into, then the whole thing gets recalibrated, and the investments start (unlike the current situation which is that they don’t know what would happen). In the UK, we’ve been doing well. And now the elections are (over) I expect, there is a certain direction available to them.

But elections are due in November. That is a long wait, should we brace for more uncertainty over the next two quarters?

I see maybe the next two quarters we need to wait is my guess. Unless the interest rate gets reduced before that (some clarity will emerge in the next two quarters).

The contribution from North America to TCS’s overall revenue has dropped below 50% for the first time in three years. Even India revenue contribution is at a multi-year high. Will this continue to be the trend?

We would like that. Broadly, we’ve been using North America as one layer of growth. And secondly, there has always been Western Europe and the UK. We want to have a credible third pillar of growth coming from emerging markets. So, we are very focused on these emerging markets and investing a lot (there).

Are Generative AI projects more on site or are they being offshored, because of the data intensity involved?

It’s a mix. Our R&I (research and innovation) teams are primarily based out of India. But we do have a significant portion of our team onsite also. Generative AI is more of a summarising technology as it stands today while traditional AI is predictive.

Your peers are on an acquisition spree, there is a rush for ER&D semiconductor companies and what are your plans?

My guess is that there is an overall rush towards semiconductor companies because everyone wants to ride on Gen AI and interest in India. Our approach has been to create synergy, if I can top off what we can acquire and provide a growth multiplier, we will do it. If not, we will not do it. It’s easy to acquire but if you're not able to execute on synergy benefits, you will be staring at more inefficiencies. So, we don’t want (that), our benchmark on acquisitions is quite high.

How significant are Tata Group companies for the growth of TCS?

Tata group is very critical for us. We have to fight to win programmes with group companies because each one of them is a listed company, they deal with us at arm’s length. But we know what the group is planning to invest so we prepare ourselves, but we fight with everybody to win those deals. But it's very important. The group is also investing globally as well. So, we want to increase and enhance our presence through collaboration.

You still have 30% of TCS employees who are yet to work from the office. So, are you being liberal in your mandate of work from office?

There are people with genuine reasons to work from home, people holding out or not coming at all is a smaller percentage. We are rolling out the consequence process. It will be an incentive plus a disincentive mechanism. We are close to 80% of the people coming into the office. Before the pandemic also, about 80-85% of people came to office. If you go into any of our Centres, the activity is like pre covid level.

24. Professional Services Cos Add Record Partners as Biz Booms

ET, 15 Jul. 2024

The top six professional services firms in India combined now have over 3,300 partners — equity plus non equity — with EY being the first firm to exceed 1,000 partner benchmark driven by continued strong growth in advisory businesses after the Covid-19 disruption.

In the last three years, the advisory businesses — consulting, deals and risk — have grown much faster — 25% plus—than the traditional areas like audit and tax, which have grown between 15% and 22% for most firms, as the firms continue to pivot towards high-growth advisory services, including tech consulting and implementation.

With EY being the last Big Four firm to close its financial year on June 30, the combined revenue of the Big Four firms — affiliates included — in the last financial year has crossed ₹39,000 crore, according to multiple senior partners ET spoke to across firms.

With growing demand for services due to increased economic activity, growing regulatory complexity, rapid tech-led disruption and increasing digitisation, the firms have been forced to expand their middle and top level leaderships, hence the record partner additions, particularly in consulting and tech consulting.

In FY 23-24, Deloitte promoted and laterally hired around 150 partners. Just to put things in perspective, in 2014, the firm had 173 partners in all. Rival firm PWC internally promoted or laterally hired more than 100 partners, while KPMG added 29 partners in FY24.

“The country’s growth trajectory empowers us to cultivate new leaders and drive groundbreaking innovation from India. Deloitte is currently the fastest-growing large firm in India and we are significantly expanding our partnership due to robust demand for our services. We are building innovation not just for India, but for the world,” said Romal Shetty, CEO, Deloitte South Asia.

Sanjeev Krishan, chairman, PwC India, said the firm has been able to elevate partners based on two basic principles: having the right people who are focused on making an impact for clients and being an aspirational partnership for our people and fellow partners.

“To stay ahead in the business critical fields of AI, business model reinvention, climate and sustainability, cyber, tax and trust, we have strategically invested in the acquisition and development of top-tier leadership talent,” he said.

The senior partners estimated the total partner profit pool in FY24 for the Big Four firms, including audit affiliates, could be between ₹6,600 crore and ₹7,000 crore.

It's not just the Big Four firms; two other firms, Grant Thornton (GT) and BDO, have also scaled up quickly in the last three years and registered strong partner growth.

Grant Thornton Bharat and its associate audit firm, Walker Chandiok & Co, now have 224 partners, having added 59 new partners in the new financial year between them. “GT Bharat is already considered the first Indian Big Four — both clients and talent are now attracted to that Indian-global proposition, something we have been promoting now for 25 years,” said Vishesh Chandiok, CEO, Grant Thornton Bharat.

Mumbai-based BDO has been the other non-Big Four success story, having scaled up from 15 partners a decade ago to 219 now.

“There was a clear need for a firm like BDO in a growing economy like India. Companies were looking for a non-Big Four quality firm. We took risks and invested money ahead of the opportunity, and now we will cross 10,000 people in August,” said Milind Kothari, CEO of BDO, India’s sixth-largest professional services company.

The future pipeline for partnerships is also robust for the firms. Deloitte has over 200 executive directors (EDs) with over 150 being promoted or laterally hired in FY 2024. At PwC the partner pipeline for the next year is 100 plus and new ED promotions too — currently 280 — will cross 110.

The partner title is widely sought after in the professional service firms and each firm strives to broaden its partnerships as it's a flex before clients, it encourages staff and raises the company profile.

With large staff bases, thousands of top Big Four performers increasingly aim to become partners in a short period of time, and to meet their ambitions, the firms created tiers such as paid partners, associate partners, and, in certain cases, senior executive directors are also given partner-like treatment.

Now, firms are accelerating career progression, but differences in nomenclature, such as how each firm treats their EDs, can sometimes distort numbers. However, the traditional benchmark of having one non-equity partner for every three equity partners is clearly no longer effective, as firms are now adding non-equity partners at a faster rate, and hiring much bigger numbers from industry.

Recently, one leading firm has informed its 350 non-equity partners that they will be made equity partners over three years, according to sources with direct knowledge of the matter. PwC, with 125 salaried partners and 280 EDs, considers them part of its extended partner catchment pool.

25. Own Semicon Design, Brand Next Fab Job for India to Do

ET, 15 Jul. 2024

This “will be the new reality one has to live with,” Tan said. But it’s counterintuitive for a multi-billion dollar industry that has relied on a complex web of inter-linked supply chains, thriving on open borders and free trade. Blueprints designed by Indian-origin engineers in Silicon Valley or Israel for companies like ARM that are Japanese owned but UK based, with tools made by a specialised Dutch company and then shipped to Taiwan to be packaged in the mega facilities of companies like Taiwan Semiconductor Manufacturing Company (TSMC) before the final assembly in China. India is estimated to be home to a fifth of the world’s semiconductor R&D talent.

For companies like Apple that are looking to reduce their dependence on China, India can emerge as the “third most crucial semiconductor hub,” said Tan. Apple makes iPhones in India through its contract manufacturers, including Tata Electronics.

India has seen some landmark business ventures on the chip front after the Centre launched the India Semiconductor Mission. The Tata Group, Murugappa Group and America’s Micron have committed to invest nearly $18 billion to build chip design, fabrication, assembly, testing and packaging units.

Global giants such as Tower Semiconductors, Foxconn, Simmtech, AMD, Kaynes Technology as well as homegrown IT services and engineering companies like HCL and L&T are also working on domestic semiconductor design and chip fabrication, giving a boost to the ambitious government electronics export target of $300 billion by next year.

India may have the IT services backbone to back its own semiconductor foundries, which Tan argues is “a services play,” but building fabs is not that simple. “It’s very important to have the infrastructure, consistent power and water. India still needs to improve on that,” he pointed out.

He suggested that India should move with care, given the enormous investments involved.

“If I were to do fab, I would start with mixed signals (analog and digital processors), power management, image sensors — those have volumes and don’t need leading-edge processors. I call them feature-rich foundry,” said Tan. “Leading-edge node processing foundries that manufacture the latest and most advanced sub-5-nanometre chips for Nvidia or Qualcomm, AMD and are used for data centres, cell phones and laptop processors — are very expensive. Each fab needs a $20-25 billion investment and if you don’t have a customer that is committed, it's very risky. You need at least one to start safely and over time you can diversify.”

The challenge will always be to be the lowest cost producer yet having the most advanced technology.

“Only then can you deliver consistent quality and yield and demand the best customers to come,” he said. In that context, “Apple is a big win… They are committed to diversify out of China. Otherwise, customers will just shop around to find the best cost. If you don’t provide consistent delivery, they will just walk away.”

Tan is a nuclear engineer from the Massachusetts Institute of Technology (MIT)-turned-venture capitalist-turned executive CEO. The dosa-loving, Malaysian-born Tan is also a sought-after advisor by governments such as Taiwan and tech titans like Nvidia’s Jensen Huang and SoftBank’s Masayoshi Son, valued especially for his contrarian outlook.

But his cult status comes from turning around Cadence Design as a first-time chief executive from a near-bankrupt US chip design company in 2008 into a $52 billion colossus in 13 years, giving shareholders a near 78 times return.

As the founder and chairman of San Francisco venture capital fund Walden International with $5 billion assets under management (AUM), he bucked the establishment and backed Asian challengers in the mid 1990s. Most of his bets either listed at a premium around the world or were acquired by top global corporations such as Microsoft, Broadcom, Sony, Qualcomm, Amazon and Marvell among others.

Tan sees several future growth drivers for deep tech — 5G & 6G mobility, hyperscale computing, cloud, automotive, edge AI, generative AI, industrial IOT — that will help semiconductors become a $1 trillion industry even before 20230. Incidentally, Nvidia’s market value is already at $3.8 trillion.

But Tan is worried about the impact this will have on climate change. It’s estimated that 20% of global electricity supply will go toward powering just data centres alone.

“The world underestimated the power requirement by four times. Processors are extremely power-hungry,” he said. “For instance, the Nvidia Blackwell chips need 2,700 watts of power each. Power management, cloud infrastructure, memory innovation and cooling technologies therefore are the most critical areas for organisations to focus on. Otherwise we will have shortages.”

***

AAPI

Pages

Thursday 18 July 2024

Newsletter, July 2024

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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

NEWSLETTER, JULY 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

No comments:

Post a Comment