AAPI: October 2019

DELHI, 20th October 2019

Index of this Newsletter

INDIA

INDIA & THE WORLD

21.1. India to be a big focus post politics, says Trump Jr
21.2. US-India JV eyes blueberry boom
22.1. Dr. Harsh Vardhan launches WHO India Country Cooperation Strategy 2019-2023
22.2. At 17.5 million, Indian diaspora remains largest in world
23.1. Cargill to invest US$ 160 million in the next three years in new businesses
23.2. Samsung plans four IoT experience centres in India
24.1. No reason why India-US trade deal can’t be done quickly: Wilbur Ross
24.2. Opinion | China has pulled ahead of India on far more than the economy
25.1. China opens public hospitals for Dr Reddy's Laboratories generic drugs
25.2. China opens to Portuguese grapes

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DELHI, 20th October 2019

NEWSLETTER, 20-X-2019

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1.1. The Gandhi you know, and the one you don’t

Livemint, 01 Oct. 2019

There are facets of the man that the whole world knows. Mint presents some that not many are aware of

Married as teenagers, and ‘jealously possessive’ till her death decades later

Gandhi and Kasturba—both born in 1869—were married in 1883

Gandhi and Kasturba—both born in 1869—were married in 1883. Back then, it was a five-day bullock-cart journey to cover the 300kms between Rajkot, where he lived, and Porbandar, the wedding venue. Gandhi and Kasturba were married for 61 years, and he often describes himself as a jealous and possessive husband. She died in 1944 at the Aga Khan Palace in Pune, where she was imprisoned with Gandhi from 1942 onwards for participating in the Quit India movement.

London calling, and the experience of life on a broader canvas

In 1888, Gandhi moved to London to study law, convincing his mother and brother that his religious values would not be compromised. This was a period of exposure not just to bad weather and worse food, but also to ideas and people who would influence his personality. He tried French, dancing and violin lessons, worked on his English and etiquette, attended meetings on Christianity, and started his experiments with truth, diet, religion and value-based living.

Life hack for the overseas student is simple: live the simple life

Money is always short for a student abroad, and it was no different for Gandhi. After his initial indulgences in efforts to “be an English gentleman", he buckled down and started counting pennies, feeling the guilt of having to ask his brother for money. He moved to cheaper lodgings, began cooking for himself, and kept careful account of expenses, a habit that would continue all his life even when lakhs passed through his hands as part of the freedom movement.

Finding religion again, in a foreign land

Oddly reminiscent of NRIs today, Gandhi rediscovered Hinduism abroad, in London. His faith had largely been prescribed by custom—until he read Sir Edwin Arnold’s translation of the Gita, The Song Celestial. He later met Madame Blavatsky and Annie Besant, who inspired him to read more on Hinduism. He also spent his time with Christian friends, understanding their books, and reading on Islam, exposure to all of which led to a syncretic way of thought.

An unenthusiastic vegetarian finds his vegetarianism bible

Early in his London years, Gandhi came across Henry Stephens Salt’s A Plea for Vegetarianism in one of the few vegetarian restaurants in the city (he’d been subsisting on bread). “From the date of reading this book, I may claim to have become a vegetarian by choice," wrote Gandhi in his autobiography. Later, his obsession with vegetarianism, purity and the rather harsh language with which he describes meat-eating earned him bitter critics.

The rebirth of Gandhi as the researcher of multiple diets

Until he went to London, Gandhi was a reluctant vegetarian, kept to the path only by the dictates of his father and vows extracted by his mother.

Until he went to London, Gandhi was a reluctant vegetarian, kept to the path only by the dictates of his father and vows extracted by his mother. As a teenager, he’d eaten meat for a year on the sly, wishing he could one day do so “freely and openly". In London, often hungry, he managed to find and sign up with the Vegetarian Society. This was the beginning of his experimenting with diet—fruitarian, veganism, intermittent fasting, and more.

A lawyer at last and back in India, but without the skills to practise Indian law

Two days after he was called to the Bar in 1891, and three busy and educative years in London later, Gandhi sailed for India and tried to establish a practice. It was a long haul as he hadn’t practised or apprenticed in Britain. He was well-versed in Roman law, which helped him later on in South Africa, but in court in India, he found himself at a loss. He was painfully shy and afraid, said Gandhi, and unfamiliar with Indian laws, having studied in England. He tried setting up a practice in Bombay, but eventually gave up and moved to Rajkot where his family’s connections helped him secure work such as drafting memos and documents.

The doctor who fired up a leader and funded the freedom fighter

Dr. Pranjivandas Mehta was the “reader" to whom Gandhi addressed his sermons in “Hind Swaraj", based on a conversation the two had in London in 1909. Mehta, who shaped Gandhi’s ideas and backed him financially, was a doctor, lawyer and diamond merchant in Rangoon. They met when Gandhi was a student in London. More than a decade before the Dandi March in 1930, Mehta wrote to him about the need for action against repressive tax laws. Mehta died in 1932.

THE SOUTH AFRICA YEARS

A new continent, a chance for a new beginning, yet some old failings

When an opportunity to work for Durban-based businessman Abdulla Sheth came up, Gandhi saw it as a chance to see the world. The job—helping Sheth’s lawyer—was for a year and the pay, first-class return fare and £105. Gandhi moved to Durban in May 1893. There, too, his fear of public speaking kept him from going to court, but he built up a successful practice drawing up documents and working for rich businessmen of the region.

Getting on board the train to fight racial discrimination

After he was famously thrown off a train for refusing to move to a third-class carriage in 1893 at Pietermaritzburg railway station, Gandhi began closely observing the entrenched racial discrimination. Over the next few years in South Africa, he met more Indians from all classes and communities, learnt what it meant to be a “coolie", and began petitioning the government for rights and peacefully protesting against unfair taxes.

A farewell party 19 years too early turns into a struggle for Indians’ rights

His farewell party turned into a working committee meeting for the new resistance

Gandhi was set to return home when a newspaper article caught his eye—a Bill before the House proposed to deprive Indians of their right to elect representatives to Natal Legislative Assembly. When he realized Indians knew little about this and didn’t plan to oppose it, he decided to stay. And his farewell party turned into a working committee meeting for the new resistance. Gandhi’s year-long stay in South Africa would turn into a 20-year one.

Organizing the local community

He founded the Natal Indian Congress in 1894, worked for the rights of indentured labourers, protested against the system of passes for Indians and organized the local Indian community, both rich and poor, into a force for passive resistance. It was in these movements that Gandhi learnt his first lessons in community building and peaceful protest, besides opening his eyes to the deeply entrenched inequality, both in South Africa and India.

In a sign of the times, petition collects 10,000 signatures

To begin their protest against the proposed disenfranchisement of the Indian community, Gandhi sent telegrams to House representatives asking them to postpone the Bill. Overnight, he drafted a petition to be presented before the House, and volunteers wrote up multiple copies. The Indian community crisscrossed the city and collected 10,000 signatures. The Bill was disallowed then, but reintroduced and passed into law in 1896.

Crushed under the substantial weight of the £3 tax on Indians

In 1894, the Natal government proposed an annual £3 tax on Indian indentured labourers and their family members. The genesis of the tax, says Gandhi, was in the fear Europeans had of Indians, many of whom came as indentured labourers, served their tenure, bought land and made a success of themselves. It was a long battle against the levy—with 10,000 jailed and many killed in police firing—which they lost. It was only 20 years later that the tax was rolled back.

The importance of public support and the art of managing public institutions

Perhaps this holds true today as well. Based on his experiences in South Africa, Gandhi wrote: “It has become my firm conviction that it is not good to run public institutions on permanent funds. A permanent fund carries in itself the seed of the moral fall of the institution... Institutions maintained on permanent funds are often found to ignore public opinion… The institution that fails to win public support has no right to exist as such… (The satyagraha in South Africa extended) over six years, was carried on without permanent funds though lakhs of rupees were necessary for it."

An unread man, perhaps, but a very good reader of men

Abdulla Sheth, or Dada Abdulla, wrote Gandhi, was “practically unlettered" but had “an acute intellect and was conscious of it". The shipowner ran the biggest Indian firm in Africa at the time, having made his fortune selling gold from South Africa to India. Abdulla, who hated racism, quickly saw the young man he’d hired was a sharp organizer and supported Gandhi’s many campaigns. It was in Abdulla’s house that the Natal Indian Congress was launched on 22 May 1894.

An Indian holiday, and Europeans see red about the green pamphlet

In 1896, Gandhi returned to India for six months, where he met a number of newspaper editors, Congressmen and influential citizens and explained the plight of Indians in South Africa. A pamphlet on “The Grievances of British Indians in South Africa", better known as the “Green Pamphlet", got picked up by news agencies around the world. This didn’t go down so well back in Durban, and Europeans there began a campaign against Gandhi’s return.

The return, a hostile welcome, an exemplary act of forgiveness

When the ship with Gandhi and his family reached the port of Durban on 18-19 December 1896, it was not given permission to berth—much like migrant boats that often remain at sea today as they try to enter European waters. Finally, on 13 January 1897, he was allowed to come ashore but was met by a mob that assaulted him. Friends in both civil society and the police helped him escape. He decided not to prosecute his assailants although the police were willing to support him.

Getting on the same track as the ordinary citizen

Gandhi spent a year in India from October 1901. He attended a Congress session in Calcutta, and spent a month with his mentor, Gopal Krishna Gokhale. He travelled home to Rajkot in a third-class compartment— the start of a lifelong habit. He described the compartments as filthy, crowded and uncomfortable, and compared them unfavourably with third-class carriages abroad. It was train travel that made Gandhi aware of the travails of ordinary citizens.

An Indian with a defined opinion on equality and human rights

Gandhi continued to mobilize Indians to agitate against discriminatory policies and laws, and enrolled in the Transvaal Supreme Court as an attorney in 1903. He also launched Indian Opinion, a weekly paper, to spread the message of civil rights. The paper highlighted the poor conditions under which indentured labourers worked. Indian Opinion formed the basis for Gandhi’s later publications, Navjivan and Harijan, to build on themes of equality and freedom.

Divided loyalties during the Second Boer War

Gandhi raised an Ambulance Corps during the Second Boer War. Though he sympathized with the Dutch, he backed Britain. This was before Gandhi’s ideas about resistance to imperialism took shape. He believed that if Indians demanded rights as British citizens, it was also their duty to participate in the defence of the Empire. It was this reasoning that made him volunteer the services of Indians during the World Wars as well.

The influential Parsi backer who opened up purse and home, and then kept on giving

Rustomjee Jivanji Gorkoodhoo, or Parsee Rustomjee, was a prominent businessman and a supporter of Gandhi. His house in Durban was “a centre of public activity and a resting place for strangers from India", writes Gandhi’s friend Albert West. In 1893, Rustomjee helped collect 10,000 signatures for a petition against the bill to deprive Indians of their vote. Income from trusts he set up continued to fund Indian schools in South Africa as well as famine relief and other causes Gandhi took up after his return to India in 1915.

JAN Smuts finds out that he has some very big shoes to fill

From the early 1900s till he returned to India for good, Gandhi faced off against Jan Smuts, the then colonial secretary. As with most of the people he went up against, Gandhi earned Smuts’s grudging respect. Gandhi presented him with a pair of sandals he had made, which Smuts would use, return on his 70th birthday, and remark “I have worn these sandals for many a summer...even though I may feel that I am not worthy to stand in the shoes of so great a man."

Hind Swaraj and criticism of imperialism, technology, railways

In 1909, while travelling from London to South Africa, Gandhi wrote in one sitting Hind Swaraj—a manifesto for self rule that was especially critical of Western civilisation, modern education, international trade, and the role of the railways in enslaving populations. The British banned it as seditious. Many years later, he explained that his comments in Hind Swaraj related to imperialism and exploitation and the role the railways had played in it.

The true Tamil tiger in the form of Thambi Naidoo

Among the first satyagrahis between 1906 and 1914 in South Africa were C.K. Thambi Naidoo and his family—including his wife Veerammal, their seven children and his mother-in-law. He was a cartage contractor and the owner of a fodder store, but jail time left him in penury. The family eventually moved to Tolstoy Farm, where he was in charge of sanitation and Veerammal was the cook. He continued on the path of passive resistance until his death in 1933.

Clothing as a symbol and a tool for policy

In London and South Africa, Gandhi was fastidious about how he dressed. In Volksrust prison in 1908, he sewed the caps black prisoners wore—what we know today as the Gandhi cap—and took to wearing it. In 1912, he adopted the clothes Tamil indentured labourers, whose interests he represented, wore. Once back in India, he went back to wearing Gujarati clothes, but in 1931 adopted the loincloth and shawl. Clothes, for Gandhi, were also a tool of political strategy.

Reaching a settlement on the Indian question

It took till 1914, and many protests, much violence, deaths of satyagrahis and long jail terms before Gandhi and Smuts reached an agreement on “the Indian Question". This led to the passing of the Indian Relief Bill that gave in to all the demands of the South African Indian community: the £3 annual tax was abolished, marriages considered legal in India became legal in South Africa as well, and the domicile certificate became sufficient right to enter India.

The great march in South Africa before the great march in India

A precursor to the Dandi March was Gandhi’s Great March in South Africa in 1913 to protest against the tax on indentured labourers and a Hindu-Muslim marriage ban. On 15 October 1913, Gandhi, Kasturba and 15 others left the Phoenix settlement for the Natal border with Transvaal, with 3,000 workers joining them en route. Police beat up, detained and killed many but they pressed on, making world headlines and forcing the government to look into their demands.

Architect, sponsor, follower, soulmate, dissenter: a man of many parts

A wealthy architect, Hermann Kallenbach owned the 1,000-acre Tolstoy Farm, where Gandhi launched his first satyagraha in 1910. Influenced by Gandhi, he became a vegetarian and participated in experiments in cooperative living, diet and politics. Gandhi described Kallenbach as his “soulmate". He went on to become a Zionist—politics that they disagreed on—but the respect remained. He visited Gandhi at Sevagram before moving to Israel, where he died in 1945.

Secretary, loyalist, treasurer, editor, teacher: a woman of many parts

Sonja Schlesin was Gandhi’s efficient, outspoken and committed secretary in South Africa. She drew much praise from Gandhi, his clients and fellow satyagrahis. Schlesin started working for Gandhi at the age of 17, and not only managed his law practice but also the satyagraha campaign and the Transvaal Indian Women’s Association. She kept track of donations, edited Indian Opinion, visited satyagrahis in prison and was one of the trustees of Phoenix Settlement. After Gandhi left South Africa, she went back to university, and in 1920, became a high school Latin teacher—a position she held for 23 years. She died in 1956.

A return delayed by World War I, but back to India for good in 1915

Gandhi finally left South Africa after more than 20 years, and arrived in India in January 1915, having been delayed by the outbreak of war in Europe. Gandhi and Kasturba looked for a place to settle their “Phoenix family". They had reached India before him and were staying at Santiniketan. Gopal Krishna Gokhale promised to cover all the expenses for a new ashram, and Gandhi felt great relief that he’d not only be freed of the stress of fund raising but would also have a guide.

Fighting the good fight but also knowing when to give ground

Be it dealing with Smuts in South Africa, the Kheda and Champaran satyagrahas, leading the Dandi March or a fast to secure the rights of mill workers, Gandhi knew how to yield before people were spent by hardship and the patience of the authorities wore thin. In Kheda, he gave in when he saw farmers wavering and a landowner presented a compromise. The farmers had been awakened politically, he said, and a campaign was “worthy" only if satyagrahis emerged stronger.

From phoenix to Sevagram via Kochrab and Sabarmati, the rise of the ashram

The idea of a community with a common goal was central to Gandhi’s ideals. After experiments at Tolstoy Farm and Phoenix Settlement in South Africa, he set up his first Indian ashram in Kochrab in May 1915, where he settled followers who had come with him to India. However, the plague broke out two years later and the ashram was shifted to Sabarmati, from where he led the Dandi March in 1930. In 1936, he moved to Wardha, set up Sevagram, and made it his headquarters.

A first-hand experience of poverty in the villages of Bihar

In Bihar, Gandhi and a team of volunteers that included Acharya J.B. Kripalani and Maulana Mazharul Haque, opened primary schools in six villages. It was also among his early experiences of coming face to face with dire poverty. When he got his wife to ask a woman why she did not wash her clothes daily, the woman replied, “The sari I am wearing is the only one I have. Tell Mahatmaji to get me another one and I shall bathe and put on clean clothes everyday."

The Cantabrigian as a firm apostle of Indians

A close friend of both Gandhi and Rabindranath Tagore, C.F. Andrews was a priest from Cambridge who came to Delhi in 1904 to teach at St Stephen’s College. Over time, he came to identify closely with the problems of Indians around the world, became a critic of imperialism, and wrote prolifically on the problems faced by Indian indentured labourers. Gandhi’s nickname for him was Christ’s Faithful Apostle, taken from his initials. He died in 1940 in Kolkata.

Before discovery of India, a rediscovery of India

After returning to India in January 1915, Gandhi and Kasturba spent close to a year taking the train around India and Burma, third-class all the way, as he wanted to reacquaint himself with people. They travelled to Poona, Porbandar, Rajkot, Delhi, Wadhwan, Burdwan, Shantiniketan, Haridwar, Rishikesh, Mathura, Vrindavan, Madras, Rangoon and more, talking about their struggle in South Africa and the gains made by the Indian community there.

One of those rare occasions where great minds did not think alike

An industrialist with diverse interests, Ghanshyam Das Birla first met Gandhi in 1916, and was influenced by his sincerity and search for truth

An industrialist with diverse interests, Ghanshyam Das Birla first met Gandhi in 1916, and was influenced by his “sincerity and search for truth". The two had differences of opinion—Birla being a pragmatic businessman and Gandhi an avowed dissenter—but were close and Birla played the role of an unofficial emissary between Gandhi and the British. Birla supported Gandhi for over three decades, and was the founding president of the Harijan Sevak Sangh.

POLITICAL LIFE IN INDIA

The start of active politics and his first arrest in his homeland

Gandhi became president of the All India Home Rule League in 1920. A year later, when the Prince of Wales visited India in 1921, people emptied out of the streets and boycotted him after Gandhi’s call. Gandhi addressed a meeting in a mill in Bombay and lit a massive bonfire of foreign-made cloth. But what was to be a peaceful meeting ended in riots with 59 dead. In 1922, Gandhi was arrested in India for the first time for sedition over three articles he wrote in Young India, and was released in 1924.

India’s very own version of the roaring twenties

Throughout the 1920s, Gandhi led the Congress to adopt “Purna Swaraj" as its goal and the path of non-violence as the means. At the 1924 Belgaum Congress session, he was elected party president and served for a year. Under him, civil disobedience intensified, he led the boycott of the Simon Commission, demanded restitution for the Jallianwala Bagh massacre, and an apology for the Khilafat movement. He also founded Gujarat Vidyapith at Ahmedabad.

The Mahatama Gandhi national rural employment scheme 1.0

The slow movement would certainly have appealed to Gandhi who wrote that “when production and consumption become localized, the temptation to speed up production indefinitely and at any price disappears". Following this line of thought, he advocated a revival of village industries, such as ginning, spinning, oil extraction, husking and grinding, “because there is no other way of giving employment to the millions of villagers".

A time to connect and reconnect with friends

After the Salt Satyagraha of 1930, Gandhi and over 100,000 others were jailed, and released a year later. For him, the Second Round Table Conference in London in 1931 was a time of serious business as well as a chance to meet friends he’d left behind years ago. He also met the mill workers of Lancashire. On his return, he was arrested and began a “fast unto death" in jail for the abolition of separate electorates for Harijans, a demand that was granted.

Duty as the bridge between the concept of ahimsa and war

Gandhi preached non-violence and peace yet mobilized Indians to support the British in the Boer War, World War I and World War II. He was in London when World War I broke out, and volunteered Indians for service. When friends mentioned ahimsa, he said participation in war is against ahimsa but fulfilling one’s duty is paramount. “A votary of ahimsa remains true to his faith if the spring of all his actions is compassion," he’d write in explanation later.

A statement of retirement but no retirement from activism

In 1934, he announced his decision to retire from politics and resigned from the Congress

In 1934, he announced his decision to retire from politics and resigned from the Congress to focus on the development of village industries, Harijan service and vocational and skill-based education, and moved to Sevagram. Despite his announcement, he continued to meet British and Indian leaders, and go on fasts to draw attention to rights abuses. He was in and out of prison throughout the 1930s, and toured Orissa on foot, talking of the need to abolish untouchability.

The curious case of the libran who fell under the sway of Leo

Leo Tolstoy’s writings and ideas about renunciation as a means of opposition and a force impressed Gandhi and were akin to his own. He had read Tolstoy’s The Kingdom of God is Within You in 1894 in London, which started him on the path of the search for truth and non-violence. In prison in South Africa in 1908, he reread the Russian writer’s works and began writing letters to Tolstoy the next year. Tolstoy confirmed that passive resistance was crucial not just for Indians but for the world. He described in it the struggle of the Transvaal Indians, and the two corresponded till Tolstoy’s death in 1910.

The millowner Gandhi took on, but their ties didn’t unravel

Industrialist and textile merchant Ambalal Sarabhai supported Gandhi financially on his return from South Africa. He made a generous but quiet donation of ₹13,000 to save the Satyagraha Ashram at Kochrab, which was foundering as funds had dried up after Gandhi took in a family of so-called untouchables. During the Ahmedabad labour strike of 1918, led by Ambalal’s sister Anasuya, Gandhi went on his first political fast and got Sarabhai, the head of the millowners’ association, to give workers the benefits they had been demanding.

THE QUIT INDIA YEARS

Do or die, and years spent in prison after a call for the British to leave

Do or die" is now a pop slogan, but it’s Gandhi’s call for the final push for freedom, “Quit India". After the failure of the Cripps Mission, which was to discuss devolution of powers but didn’t give space to Indians’ demands, Gandhi called on people to demonstrate peacefully and persistently for withdrawal of the British, who were embroiled in World War II. Most Congress leaders were arrested, and jailed till the end of the war. Strikes continued and thousands were jailed.

The loss of a close friend and a life partner in the span of two years

In 1942, Gandhi, Kasturba and their followers were arrested for their role in the Quit India movement, and interned at the Aga Khan Palace in Pune. Gandhi’s friend and personal secretary for 25 years, Mahadev Desai died in prison less than a week after they were arrested. Desai and his wife Durgabehn joined Gandhi in 1917, and worked closely with him, translating his work and doing every task Gandhi asked him to. In 1944, Kasturba also had a heart attack and died in the palace.

The charkha at the centre of swadeshi, self-sufficiency and freedom

The charkha, or spinning wheel, was at the intersection of his ideas of self-sufficiency, swadeshi, dignity of labour and freedom.

The iconic image of Gandhi is of him spinning, serene yet focused. The charkha, or spinning wheel, was at the intersection of his ideas of self-sufficiency, swadeshi, dignity of labour and freedom. Spinning and reviving traditional craft and methods would make villages self-sufficient, he believed. Gandhi described the charkha as the “life-giving sun", saying its revival would “illuminate the planets of other handicrafts" and “solve the problem of economic distress".

A pen-pusher unlike any other, and a wide canvas

A prolific writer and journal keeper, Gandhi was the editor of the Gujarati paper Navajivan, the English paper Young India and the weekly Harijan, which he started in 1933. It was rare to see an edition without an article by him, a practice he started when he published Indian Opinion in South Africa. He did most of his writing on trains and covered everything from the benefits of giving up milk to the need for better sanitation to economic development.

The central role of the village in social and economic development

Gandhi said a non-violent system of government was not possible in an unequal society and “you cannot build non-violence on a factory civilization". He viewed the rural economy as one that “eschews exploitation altogether", a point on which he and B.R. Ambedkar differed, the latter believing villages were held back by caste hierarchies. Gandhi felt each village had to function as a separate panchayat, independent of its neighbours, yet interdependent for larger needs.

Cleanliness is next to godliness predates Swachh Bharat

That he cleaned toilets to advocate dignity of labour is well known. Gandhi wrote extensively on the lack of sanitation, and the filth in third-class railway carriages. He had strong ideas about eliminating mosquito breeding sites—probably because he had malaria thrice, and linked equality with elimination of diseases like leprosy and tuberculosis that bred stigma. Today, this advocacy of hygiene has been repurposed into a political tool.

A very distant forerunner of Thomas Piketty

Gandhi’s idea of wealth and ownership was very different from that of the merchants who supported him. He wasn’t against businessmen earning well; it was that he believed wealth does not belong to an individual but must be used for the community’s welfare. “As soon as a man looks upon himself as a servant of society, earns for its sake, spends for its benefit, then purity enters into his earnings and there is ahimsa in his venture," he wrote in Harijan in 1940. He sought an end to capitalism and inequality but was pragmatic enough to understand the power and necessity of funding an initiative as massive and audacious as freedom.

The man behind FICCI had skirmishes with the congress but also bridged gaps

The president of the East India Cotton Association and an astute cotton trader from Bombay, Purshottamdas Thakurdas, along with G.D. Birla, set up the Federation of Indian Chambers of Commerce and Industry (Ficci) in 1927 in an effort to unite Indian businessmen against imperialists. They, and other businessmen, viewed the Congress as a means to break Britain’s grip on the economy, yet often clashed with the party leadership over its socialist tilt. Thakurdas was respected both in London and British Indian circles as well as within the Congress, giving him a unique position to negotiate.

THE MONTHS AFTER INDEPENDENCE

Meeting youth across communities to bring about the miracle of Calcutta

In the run-up to independence, Gandhi travelled to Bihar, Bengal and Punjab to maintain peace. Communal tensions flared often, and after the brutal Calcutta Killings and Noakhali riots in 1946, he spent months in Bengal. Two days before independence, Gandhi reached Calcutta and met young people from the Hindu and Muslim communities. On 15 August 1947, they took out rallies together and raised the flag. It came to be known as the Miracle of Calcutta.

Partition gave him little cause to celebrate his last birthday

Where did the congratulations come from? Would it not be more appropriate to say condolences?" was Gandhi’s response to the many visitors, letters and telegrams that arrived to mark his 78th birthday. He did not give permission to publish the letters, messages and telegrams he received. He’d wanted to live to 125 but that day, he often mentioned death as he’d focused on unity all his life but was now seeing brutality and communalism in the wake of Partition.

Walking his way to health, and walking the talk

To avoid compulsory games at school, Gandhi took long walks. He discovered the benefits in London where he walked to cut expenses. In Bombay, as “a briefless barrister", he would walk 45 minutes to court. He prescribed it to his mentor Gopal Krishna Gokhale who said he had no time, which prompted Gandhi to write: “No matter what amount of work one has, one should always find time for exercise as one does for meals. Far from taking away from one’s capacity for work, it adds to it."

Reminding people their duties do not include a ticket to ride

After independence, Gandhi spent much of his time praying, fasting and discussing duties of citizens. In October 1947, at a prayer meeting in Delhi, he dwelt at length on ticketless travel: “People think that since they had won freedom there was no need to buy tickets… The railways certainly belong to us now but ticketless travelling has led to a loss of ₹8 crore… if people start having free rides in trains, it is a kind of violence…"

The ‘fifth son’ who boycotted foreign goods, served jail time like Gandhi

A financial supporter and a follower, Jamnalal Bajaj considered himself Gandhi’s fifth son. He founded the Bajaj group in the 1920s. The call to boycott foreign goods resonated—he saw as exploitative the British practice of importing cheap material made from Indian cotton, and selling it to Indians at exorbitant prices. Bajaj provided land for Gandhi’s Village Industries Association at Sevagram, and served jail time during the Quit India movement.

The last fast to call for communal harmony

On 13 January 1948, Gandhi began what would be his last fast in public life; the aim was communal harmony

On 13 January 1948, Gandhi began what would be his last fast in public life; the aim was communal harmony. Riots had been contained but there was “a storm within the breast. It may burst forth any day", he said, and began. As he weakened over the next five days, political and religious leaders became anxious. Finally, on 18 January, after all communities assured him of holding the peace, Gandhi broke his fast with orange juice given by Maulana Abul Kalam Azad.

Three gunshots in New Delhi that were heard around the world

But, around 5pm on 30 January 1948, he was assassinated by Nathuram Godse at Birla House in New Delhi

Gandhi often said he’d like to live to the age of 125. But, around 5pm on 30 January 1948, he was assassinated by Nathuram Godse at Birla House in New Delhi. He was 79. After the cremation at Raj Ghat in Delhi, a special train with five third-class carriages took the ashes to Allahabad for immersion. The train stopped at 11 stations en route, where hundreds of thousands met it to pay tribute. An estimated 1.5 million mourners turned out for the funeral.

Mandela to Einstein jobs: Gandhi’s influence reached the world

Nelson Mandela. Martin Luther King. The Dalai Lama. Gandhi has influenced a number of world leaders who stood up for civil rights. Albert Einstein was an admirer and the two exchanged letters, sharing ideas on religion and politics. Management guru and best-selling author Stephen Covey drew from Gandhi’s ideas of “the seven social sins" for his 1989 book Principle-centered Leadership. In the tech world, Steve Jobs was one of Gandhi’s many admirers and used Gandhi’s images for a series of advertisements for Apple computers in the late 1990s with the tagline “Think different".

1.2. PM Modi says rural India has declared itself open defecation free

Livemint, 02 Oct. 2019, Neetu Chandra Sharma

In 60 months, over 60 crore people got access to toilets—after hearing this, the world is astonished, says Modi in Sabarmati
A sanitation survey conducted under World Bank supervision found that 90.4% of villages are open defecation free now and 93.1% of rural households have access to toilets

New Delhi: Rural India has declared itself open defecation free, Prime Minister Narendra Modi said on Wednesday as he marked the 150th birth anniversary of Mahatma Gandhi at Sabarmati riverfront in Gujarat.

“Today, rural India, its people, have declared themselves open defecation free (ODF)," Modi said.

The National Democratic Alliance (NDA) government launched the Swachh Bharat Mission in 2014 to make India open defecation free by October 2019 and achieve universal sanitation coverage.

In its 2019 manifesto, the ruling Bharatiya Janata Party pledged to ensure that every village has sustainable solid waste management systems and 100% disposal of liquid waste, with an emphasis on faecal sludge management and reuse of wastewater.

“In 60 months, more than 60 crore population got access to toilets, building more than 11 crore toilets—after hearing this, the world is astonished," said Modi, who received the Global Goalkeeper Award in New York recently from the Bill and Melinda Gates Foundation for the sanitation scheme.

A sanitation survey conducted under World Bank supervision found that 90.4% of villages are open defecation free now and 93.1% of rural households have access to toilets. The World Health Organization estimates that this initiative has massively improved sanitation and hygiene levels, which in turn can potentially save thousands of lives by reducing the incidence of diarrhoea and malnutrition. When it reaches its full potential, the mission will also play an important role in reducing the incidence of communicable diseases in India.

Public health experts say that ensuring total open defecation free India will be a challenge. According to a survey by the Research Institute for Compassionate Economics of over 3,235 households in four north Indian states in 2014 and 2018—four years after launch of Swachh Bharat—open defecation had come down by 26%, with an increase in the number of household toilets from 37% to 71%.

The survey also found that access to toilets didn’t necessarily mean the end of open defecation. The findings stated that 23% of people despite having a toilet were defecating in the open—including in Rajasthan and Madhya Pradesh that have already been declared open defecation free states.

“The Swachh Bharat Abhiyan has been instrumental in saving over 300,000 lives in the last five years. Unsafe sanitation was responsible for almost 200 million cases of diarrhoea every year before the Swachh Bharat Abhiyan was launched in 2014," said Rajesh Ranjan Singh, chief operating officer, Wadhwani Institute for Sustainable Healthcare.

2.1. Opinion| Let’s use cognitive science insights for better learning

Livemint, 11 Oct. 2019, Kapil Viswanathan, Sanjay Sarma

Newly gained insights into how people process information and learn can help redesign our education systems and spur schools to rework their pedagogical models

The average life expectancy in the US went up from 47 years in 1900 to 75 years in 2000—a 60% increase. During the course of the 20th century, we learnt a lot about how the human body works and how diseases originate and spread. We applied this new knowledge to develop modern and more effective modes of treatment, and even went as far as eradicating diseases like smallpox.

Shift gears from healthcare to education. Insights about how the human brain gathers and stores information have been accumulating for over a hundred years, beginning with the seminal work of German psychologist Hermann Ebbinghaus. But there’s a distressing gap in mainstream education: good pedagogical practice—applying what cognitive science has taught us about how people learn—has often taken a back-seat to convenience, scale and tradition. The need for better learning points to a significant redesign of existing education systems.

There are several examples. First, we learn best in about 10-minute chunks. This appears to be related to the way we form short-term memories in the brain. If learning exceeds that time, the mind begins to wander. Lectures need to be extremely short to be effective. Recorded lectures, enabling viewers to pause, rewind or speed up a video, offer a base level of personalization, where students can learn at their own pace. By contrast, learning through regular in-person lectures does not offer this flexibility.

Second, when a learner is tested frequently about the material that she has just learnt, learning is better. This is called the “testing effect" and the use of it as a learning technique is referred to as retrieval practice. An interesting aspect of retrieval practice is the positive effect of effortful retrieval. So, for example, a learner who is given weaker cues for the test, and therefore struggles more to recall material, will learn better.

Third, testing is best when spaced out over weeks or months. This concept of “spaced practice" flies in the face of a prevalent and expedient approach of mass practice, in which a student might address a number of problems at the end of a chapter in a short span of time. This applies not just to academic learning, but also to sports and motor driving. Spaced practice has now been explained to some extent down to the levels of the proteins needed for long-term memory. Oddly, a key aspect of spaced learning is that relearning material is most effective just before the learner forgets the material.

Fourth, content is best absorbed when topics are interspaced with one another.A commonpractice in education is to take up topics in blocks: multiplication one day, say, followed by division a week later. The evidence from extensive research points to the benefits of interleaving practice. The benefits have been replicated in a range of subject areas, including mathematics and fine art.

Recently, cognitive load theory has helped put more flesh on Lev Vygotsky’s theory of scaffolding. Novices have fewer predefined schema—think of previously seen frameworks and patterns to match new knowledge with—to digest new information, and thus suffer from high cognitive load because the working memory available is limited. Novices thus need more “fill in the blank" problems. But as novices gain expertise and develop the schema needed to absorb information, they can be exposed effectively to more open-ended problems.

While French philosopher René Descartes argued that the mind and the body were independent of each other, recent scientific findings seem to bear out that learning and doing are closely correlated. Tactile experience, in which a student physically feels angular momentum, or gestures to capture a phenomenon, have been shown to result in better learning than if the learning is purely abstract. Prototyping technologies such as 3D printing, Lego Mindstorms, the Arduino, the Raspberry Pi, App Inventor, and even the programming language Python, enable hands-on learning. The power at the fingertips of students to actualize their ideas, learn from real creation, seek feedback, and enjoy the pleasure of achievement is unprecedented—and will increase with time.

Project-based learning, problem-based learning and task-oriented learning are all techniques that give students more agency and purpose. Integration is another important aspect of learning, where projects and tasks can help. While learning through discipline-aligned courses can be effective, it can lead to siloed knowledge. Integration refers to connecting topics across silos.

Techniques such as game-based learning can lead a student through a series of tasks and create an environment where learning occurs naturally. An example is World Without Oil, an alternate reality game that leads players through a post-oil world, forcing them to think about the implications of an oil shock.

Clearly, we know far more about how we learn today than we did some decades ago. Yet, we are guilty of not applying these insights to education. To return to the healthcare analogy, this is no less alarming than a doctor prescribing an outdated mode of treatment despite knowing that a better and more modern one exists. Modern schools and universities must adopt newer pedagogical models and break away from centuries-old norms.

Kapil Viswanathan and Sanjay Sarma are, respectively, vice-chairman of Krea University and vice-president, Open Learning, at MIT

2.2. Recycle, reuse policy to drive India's plan to become resource efficient

IBEF, Sep. 25, 2019

Concerns over resource depletion are increasing in India because rising factory output, urbanization and population putting pressure on existing resources.

National Resource Efficiency Policy has been drafted by the Ministry of Environment, Forest and Climate Change with the aim to double the recycling rate of key materials to 50 per cent in next five years and also enable upcycling of waste.

“The agenda is to develop a circular economy. This can be achieved by two measures—firstly by recycling the materials, and secondly, by increasing the efficiency of use of these resources. These are the policy aspects that we are looking at. Recycling is about industries, which will do it. Resource efficiency is a concept which needs to be followed across all sectors," Union environment secretary Mr. C.K. Mishra said.

India’s 96 per cent mining capacity is located in 13 mineral-rich states of Madhya Pradesh, Tamil Nadu, Jharkhand, Gujrat, Odisha, Chhattisgarh, Karnataka, Maharashtra, Andhra Pradesh, West Bengal, Telangana, Goa and Rajasthan.

India remains import dependent for critical materials such as molybdenum, copper and nickel even after meeting its current demand for raw materials for thermal power generation, iron and steel, aluminium, cement and mineral fuels for coal and lignite. This could make it vulnerable to supply shocks, considering rising material consumption, which is up six-fold from 1.18 billion tonnes in 1970 to 7 billion tonnes in 2015.

“Linear production and consumption is leading to a lot of wastage in the entire value chain. Opportunities exist at each and every stage of the product cycle which can be utilized, especially at a time, when the economy is going through a rough patch. The automobile sector is under serious stress and dependent on import of a lot of materials; this is the right time for India to position itself better to future demands," said Souvik Bhattacharjya, fellow at The Energy and Resources Institute (TERI), in New Delhi.

For different sectors, National Draft Policy (NDP) will help in developing the resource efficiency strategies which is a three-year action plan and the seen key sector which has been identified to begin this plan are automobile, plastic packaging, building and construction, electrical and electronic equipment, solar photo-voltaicand steel and aluminium sector.

Under the act by National Green Tribunal (NGT) which imposed the ban on diesel vehicle, to collect such vehicles, government has set up the centres for it and carry out for the deregistration process and shredding centres which would segregate the materials for recycling.

By 2020, across all major urban centres, around 20 official dismantlers would be established. For the vehicles which made before 1990, 75 per cent recycling rate would be considered for it, 85 per cent for the vehicles between 1990-2000 and 90 per cent for the vehicle after the 2000.

Another concern is plastic waste in which 8 per cent contribution is of solid waste.

By 2025, NDP aims to reach at 100 per cent recycling also reuse rate Polyethylene Terephthalate (PET) plastic. NDP also aims to reduce the dependency on virgin materials and increase the re-use of construction and demolition waste so that, approximately 30 per cent of total public procurement of materials for civil construction can be from recycled materials by 2025.

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

3.1. Cracks in our healthcare system

Livemint, 23 Sep 2019, Rukmini S.

One year on, the Ayushman Bharat programme appears to suffer from both inclusion and exclusion errors, both stacked against the poor

Launched a year ago on 23 September, the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) scheme remains one of India’s most ambitious health schemes ever. While it may be too early to comprehensively evaluate the scheme’s impact, the early trends suggest that the scheme risks sharpening the inequalities in public health, built on the edifice on a healthcare system skewed against the poor.

The scheme built on the more limited Rashtriya Swasthya Bima Yojana (RSBY), a UPA-era scheme that provided some groups, including people below the poverty line people, health insurance coverage up to ₹30,000, and also subsumed some state-level insurance schemes. The stated aims of the insurance portion of the programme include to cushion poor families against the financial shock that a health emergency can trigger, as well as to bring the private sector to small cities. The claims limit is a big step up from the RSBY, at ₹5 lakh per beneficiary annually. The government claims that 4.46 million beneficiaries have used the scheme thus far.

The data that the government has so far put in the public domain centres largely around the numbers of beneficiaries, hospitalisations, and reimbursement claims. Relatively little is known about the nature of treatments sought by beneficiaries. Yet, the data available thus far points to worrying inclusion and exclusion errors, both stacked against the poor.

The poor in India systematically report lower rates of reported illness, medical attention-seeking and hospitalisation than the rich, as these pages have pointed out earlier.

This occurs at both the individual/ household level, and the state-level. This is not because the poor are healthier than the rich; the per-person disease burden, measured by “disability-adjusted life years" was the highest in Assam, Uttar Pradesh, and Chhattisgarh in 2017, and the lowest in Kerala and Goa, according to the latest edition of the Global Burden of Disease database.

The difference between the lower reported rates of illness in poorer but high-burden states arise from lower health awareness and from limited ability to access healthcare. For the same reasons, richer states have higher reported illnesses and higher hospitalization rates.

From AB-PMJAY data, it would appear that this pattern is being replicated, and the scheme has not yet been able to substantially alter inter-state patterns in medical attention-seeking behaviour.

Until June 2019, the most recent month for which data was submitted to Parliament, Madhya Pradesh had enrolled the most beneficiaries for the scheme, followed by Uttar Pradesh, Bihar, and Maharashtra.

However, it was Chhattisgarh, followed by Gujarat, Kerala and Tamil Nadu which submitted the most claims; and in terms of value of the claims, Gujarat had by far the most expensive treatments reimbursed. If the scheme intends to push up the share of people in poorer states who seek hospitalisation, the numbers thus far indicate that the medical attention-seeking behaviour in the poorest states remains low, and there is little data to tell us if it has increased.

In addition to such exclusion errors, there is some evidence of inclusion errors.

Early news reports indicated that the scheme was being most widely used for procedures including dialysis, cataract, and caesarean deliveries that were in many cases covered by other existing government schemes.

Among other issues, this raised the concern that the scheme might not yet be pushing up treatment for under-treated non-communicable diseases. A study conducted in Haryana and Gujarat, and published earlier this year, found that “the unmet need for treatment, as reported in illness data, was found to be highest for cardiovascular conditions, followed by other non-communicable conditions and respiratory infections".

A study commissioned by AB-PMJAY found that one-third of all claims involved high-value claims. Compared to overall patterns, high-value claims were skewed in favour of male beneficiaries and private hospitals, and just 20 hospitals accounted for 17% of high-value claims and 5% of total outlays, a skew that should trigger investigation.

The high rate of hysterectomies conducted under the scheme has also raised red flags. AB-PMJAY-commissioned study found that six states generated three-quarters of all hysterectomy claims (but these were also states with higher rates of all claims). The study indicates that the use of hysterectomies for relatively benign conditions is a public health issue, and insurance schemes could exacerbate the issue.

Other studies do show higher incidence of more expensive intervention in private than in public hospitals, but how much of this is on account of patients choosing private hospital for higher-risk procedures and better quality infrastructure, and what proportion arises from private hospitals squeezing extra expenses from patients is not entirely clear yet. A study commissioned by AB-PMJAY found that private hospitals were raising the most claims for more expensive neo-natal packages with a longer hospital stay, but the quality of care provided was also higher.

There is little doubt that the scheme has improved access to hospitalisation across the country, with large numbers of beneficiaries enrolled and a high insurance cover. However, it is not yet clear that scheme is helping the most vulnerable cross existing barriers to access medical help and be protected from excess interventions. Given the large public spending on the program, greater transparency and more data is sorely needed to evaluate these issues.

Rukmini S. is a Chennai-based journalist

3.2. IITs may get autonomy on lines of IIMs

Livemint, 26 Sep 2019, Prashant K. Nanda

The HRD ministry will discuss a new model of student, institutional financing with representatives of all the 23 IITs at the council meeting in New Delhi on Friday
IITs will also be allowed to choose their board of governors, including the chairman, with little interference from the govt

New Delhi: The Centre is likely to grant administrative and financial autonomy to the Indian Institutes of Technology (IITs), along the lines of what was given to the Indian Institutes of Management (IIMs) last year.

The human resource development (HRD) ministry will discuss a new model of student and institutional financing with representatives of all the 23 IITs at the council meeting in New Delhi on Friday. IITs will also be allowed to choose their board of governors, including the chairman, with little interference from the government, two government officials said on condition of anonymity.

“The government believes that top institutions need to enjoy more autonomy. After IIMs’ autonomy, this is now on the table and will be discussed in the council meeting," said the first of the two officials.

The second official said some of the older IITs had recently spoken to the ministry informally on the contours of administrative and financial autonomy.

One suggestion was to charge students the actual amount IITs spend on them. Whether this would translate into a direct fee hike or a new model for student financing would be introduced, will be explored.

At the B.Tech level, IITs charge students ₹2 lakh a year, whereas the actual cost is around ₹7 lakh. IITs had last hiked fees in April 2016 from ₹90,000 a year to ₹2 lakh.

“Charging a student ₹7 lakh per year may be a bit too much in the Indian context. So, a direct fee hike does not look like a possibility as of now," said an IIT professor with direct knowledge of the development. “What the IIT Council led by the HRD minister may explore is to allow IITs to charge the actual and reimburse eligible students. It’s a bit complex now, but modalities will have to be worked out over a period of time."

During the 2016 fee hike, then HRD minister Prakash Javadekar defended the move in the Lok Sabha: “Today (in 2016) the government spends ₹6 lakh per student, while the maximum fee today is ₹2 lakh a year. Fee for students from families with annual income between ₹1-5 lakh is ₹60,000. Others are eligible for interest-free loans. Those who are capable of paying, ought to pay. Only then we will be able to deliver social justice."

The second official said that while the Centre may continue to appoint directors of IITs, the engineering schools may be allowed to select their board of governors, including the chairman. “If the plan moves as desired, the political appointment and influence in the selection of the board of each IIT will reduce significantly," said another IIT professor, who declined to be named. “This will also help bring in renowned alumni to the governing board—the way IIMs are now allowed to do. IITs running via a self-appointed management will be a huge step forward."

“We are not going to be fully autonomous like IIMs as we are financially more dependent on the government. But significant amount of autonomy is certainly coming soon," he added.

The IIT Council is the apex decision-making body of all IITs. It is headed by the HRD minister, and comprises all the directors, board chairmen and a few outside experts.

4.1. Solar, wind farms soon along India-Pak border

Livemint, 10 Oct. 2019, Utpal Bhaskar

India has set a target of achieving 175GW of clean energy capacity by 2022 under its climate commitments
A 30km long and 20km wide parcel of land has been identified along the border in Kutch district of Gujarat

New Delhi: To address the issue of land availability for clean energy projects, India will set up solar and wind projects on fallow land along its international border with Pakistan, according to a top government official.

The idea was first mooted by Prime Minister Narendra Modi and will help tackle the problem of agricultural land being diverted for such projects. Accordingly, a 30km long and 20km wide parcel of land has been identified along the border in Kutch district of Gujarat and stretches along the border in Bikaner, Barmer and Jaisalmer districts of Rajasthan.

“We are looking at border areas as they offer wasteland, where such projects can be set up," new and renewable energy secretary Anand Kumar said in an interview over the phone.

India is running the world’s most ambitious renewable energy programme, with a target of achieving 175 gigawatts of renewable energy capacity by 2022 as part of its climate commitments. Currently, India generates 82,580 megawatts (MW) of clean energy, or 23% of its total power production.

“Hon’ble Prime Minister has desired that renewable projects be installed along 20km of international border. He also desired that renewable energy be used to generate drinking water in desert areas close to the border.

Accordingly, the Ministry has requested both Rajasthan and Gujarat to identify suitable land near international border (20-25km strip) where solar and wind projects can be installed," according to a government document reviewed by Mint.

As part of its commitments to combat climate change, the government has proposed that state-run companies build massive clean energy parks at a cost of around $2 billion each, with built-in incentives to ensure states and operators are invested in the success of the parks.

The proposed renewable energy power parks of 2,000MW each will help developers achieve economies of scale and further bring down solar and wind power tariffs.

“We should consciously utilize wastelands. Why should good agricultural land be used for setting up such projects?" said another government official, who did not want to be named.

“We have seen that in some areas, agricultural land gets diverted for setting up clean energy projects, which in turn raises the question of food security."

Setting up such strips will further bolster India’s image of a clean energy champion at a time the world is grappling with concerns related to climate change.

“These are desert areas with no habitats. These are large stretches that can be utilized post defence clearances because security is paramount," said the second government official cited earlier.

India’s clean energy sector is going through a crisis. With record low solar and wind power tariffs, banks are wary of lending to developers as they suspect the viability of projects that have agreed to sell power at rock-bottom tariffs.

There are other problems such as delays in payment by state-run power distribution companies that range from two months to 15 months and non-allocation of land-to-wind power projects, as well as transmission- and connectivity-related challenges.

4.2. Hindustan Zinc to invest Rs 14,000 crore in next 5 years to raise capacity

IBEF, Oct. 10, 2019

Hindustan Zinc (HZL), which is the country’s largest miner for zinc metal, plans to invest Rs 14,000 crore (US$ 2 billion) over the next five years, along with the London-based Vedanta group. This investment will be focused to raise annual capacity to 1.5 million tonnes (mt) from the current capacity of 0.8 mt.

According to Sunil Duggal, chief executive officer, "Work is in the planning stage for capacity expansion to 1.35 mt, which will take two to three years. Then, we aim to go to 1.5 mt, which will take another two years."

The company is presently in the final stage of plan to increase capacity from 0.8 mt to 1.2 mt which scheduled to be completed in the March quarter.

Mr Duggal further added, "Our entire expansion will be funded via internal accruals and every phase (to 1.35 mt and then 1.5 mt) will need US$ 1 billion each. We have enough cash reserves and will not borrow."

According to the company's annual report 2018-19, its cash and equivalent was Rs 16,952 crore (US$2.43 billion).

The demand of zinc in the country is 700,000 tonnes annually, with HZL having 80 per cent of the market share. The demand is estimated to grow with the expected rise in opportunities from infrastructure and other segments. "Domestically sold vehicles do not have galvanised car bodies at present. Due to this, there is big consumption growth potential for zinc in the domestic car segment alone," says Andrew Green, executive director of the International Zinc Association. In India-made cars, zinc content is 15-30 per cent as compared to global average of 80-90 per cent.

"Coastal infrastructure projects normally have not been using galvanised (zinc-coated) steel rebars. However, now for safety purposes and for longer lifecycle of the structure, the government has issued regulations in certain areas to use galvanised steel in these projects. This will bring a lot of renewed demand for zinc in the domestic market," says Duggal.

"The India zinc market demand growth has been four to five per cent (annually), much higher than the two-three per cent seen globally. With new avenues opening in the infrastructure segment, we see domestic (annual) zinc demand growth at 8-10 percent. In such a scenario, we will certainly pitch for the domestic market," he added.

HZL also plans to increase its exposure in high premium value-added products to 50 per cent, from the present 25 per cent.

Mr. Duggal is also interested in venturing into newer minerals and metals, such as gold. He added, "We have 26 mining licences, a majority of which is zinc but including iron ore, copper and even gold. We do have a gold mine licence in Karnataka and Maharastra. We'd like to look at gold actively, but a lot has to be done at present from the government side on these licences."

HZL produces integrated zinc-lead-silver. The mines are located at Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar and Kayad in Rajasthan. An increase of capacity to 1.2 mt will lead to annual silver production of 900-1,000 tonnes. Silver production will have hit 1,400 tonnes as zinc capacity touches 1.5 mt in five years.

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

5.1. India’s public transport challenge

Livemint, 16 Sep. 2019, Sriharsha Devulapalli , Howindialives

An effective mass transit system for India’s large urban agglomerations can flourish only with adequate financing of buses, metros, and suburban rail

Among the several services that haven’t been able to keep up with the exponential growth of Indian cities is public transportation. As transit is integral to living in cities, residents have resorted to purchasing private vehicles to get around, adding to an already-severe congestion crisis in our cities.

The solution to this challenge has been largely centred around metro rail networks, which have had a mixed record across cities so far. Currently, there are 630 kilometers of metro rail in 13 cities, with more than half of it in Delhi (343 km) and several hundred kilometers being planned in the next few years.

While metro rail networks may ease road traffic woes to some extent, the efficiency of investments in them remain a matter of debate. Even in Delhi, which received generous central assistance and low-interest foreign funding, together amounting to ₹70,000 crores between 2010 and 2018 to build its impressive network, more than half of its population still remain beyond easy reach of the network (beyond a 1 km radius from any metro station).

Other metropolitan regions are unlikely to build such large networks in the next decade or so given that they are facing financial constraints and the Union government framed new guidelines in 2017 which among other things, insist on participation from private firms in metro projects. While state and city authorities feel that the new guidelines impose onerous conditions, Union government officials argue that local authorities make plans in thin air, without thinking through the financial implications. The upshot of all this: most cities will have large shares of their population away from a high-speed mode of transit for the foreseeable future.

India's biggest metropolitan cities are a contrast in terms of metro access.

Less than one-thirds of Hyderabad and Chennai have easy access to the metro.

More than 80 per cent of Kolkata and Bengaluru are a kilometer away from a metro station.

The feasibility question mark on India’s metro plans arise from the relatively low ridership. To understand how underutilised Delhi metro currently is, we can compare it with Shenzhen in China. Both cities have started their metro networks around the same time and have near similar track-lengths. Shenzhen carried approximately 10,000 more people per kilometer than Delhi in the 2017-18 period (based on their respective official reports), which translates to around 730 million people more per annum. The single line systems in other cities (such as in Kolkata and Mumbai) have high average ridership currently but that’s a statistical artifact, which will correct once the metro network expands.

Mumbai's single line carries the most passengers per kilometer in India.

Policy focus on metro networks has meant that not enough attention has been paid to other important networks: suburban rail and buses. Suburban rails in Mumbai, Chennai, Kolkata and Hyderabad take advantage of existing railway infrastructure and provide peri-urban areas with low cost access to cities and their markets.

Investments in the suburban rail network has not been a priority because even the busiest of the networks, the Mumbai local trains, doesn’t make profits for the railways. One way to boost profits would be to raise rail fares. But as the economist R Nagaraj argued in a 2015 Economic and Political Weekly article, urban masses have violently opposed rail fare hikes, which has led to low fares and low profits.

This argument can be extended to public buses too. Across all these cities, bus ridership numbers have either stagnated or fallen. Bus operators, across these cities have not been able to increase their fleet size in the last few years.

Suburban rail riderships have largely remained stagnant.

Bus ridership in these cities have either stagnated or fallen.

CAGR for bus fleet sizes between 2009-10 and 2015-16 (in%).

Most funds allocated to the purchasing of new buses has been used to repair aging fleets. Bus operators also rarely get the same access to credit that metro rail projects have got.

In the years 2014-17, ₹1,236 crores were allocated under AMRUT scheme for procurement of buses for all states across the country. In the same time period, the MoHUA allocated ₹26,377 crores for metro projects nationwide.

Research suggests that both buses and suburban rail have the potential to deliver high quality frequent service akin to the metro at lower costs. It might be more sustainable to fund these systems with easier credit norms, and by levying a combination of fuel and congestion charges . Investments in a broader range of public transit systems that ensure last-mile connectivity could make our cities more equitable for everyone.

This is the second of a ten-part data journalism series on life in Indian cities.

5.2. Nitin Gadkari Inaugurates Dasna-Hapur Section of Delhi-Meerut Expressway

IBEF: October 01, 2019

Union Minister for Road Transport & Highways Shri Nitin Gadkari inaugurated the Dasna-Hapur section of Delhi-Meerut Expressway (package-3) in UP's Pilakhuwa today. Minister of State for Road Transport & Highways Gen (Retd) V K Singh, Deputy Chief Minister of UP Shri Keshav Chandra Maurya, Lok Sabha member Shri Rajendra Agrawal, Rajya Sabha member Shri Anil Agrawal and several MLAs were present on the occasion.

Speaking on the occasion, Shri Gadkari said the Delhi-Meerut Highway will bring prosperity to the region and will help in decongesting the National Capital Region. It will also lead to reduction in travel time by more than 1 hour and bring significant reduction in pollution level. He said, highways and infrastructure projects are directly related to the development of an area.

Shri Gadkari announced that the Ghazipur-Dasna section of this road (package 2) will be completed in next three months, and the entire Delhi-Meerut Expressway will be ready for commuters within six months.

Gen (Retd) V K Singh lauded the efforts of engineers and construction workers in completing a strong, wide and very useful road in such a short time. He said, the government has embarked upon an ambitious infrastructure development plan for the NCR, which will change the development scenario of the entire area.

Shri Keshav Chandra Maurya assured that the State government will accord priority to solving the problems before the highways sector, as these are important for upliftment of people in villages and suburbs.

The 82-kilometre long Delhi-Meerut Expressway connects Delhi with Meerut in western Uttar Pradesh. A sum of Rs 8346 crore (US$ 1.19 billion) is likely to be spent on the project. The third package from Dasna to Hapur in Ghaziabad is over 22 kilometre long. Its civil cost is Rs 1058 crore (US$ 151.38 million). This 6-lane section has 2+2 lane service roads on either sides, and a 4.68-kilometre long 6-lane elevated corridor at Pilkhuwa. It has seven new bridges, a flyover at Hapur bypass, 11 vehicular underpasses, two pedestrian underpasses, two-foot overbridges, six major junctions and 105 minor junctions.

The 4.68-kilometre long 6-lane elevated corridor at Pilkhuwa has been conferred Gold Medal for innovation in construction technology and has also been awarded as outstanding concrete structure of western UP.

The Delhi-Meerut Expressway project is being implemented in four packages – (i) an 8.72 km long 6-lane expressway/ 8-lane NH 24 from Sarai Kale Khan in Delhi to Ghazipur border, already completed in June 2018, (ii) a 19.28 km long 6-lane expressway/ 8-lane NH 24 from Ghazipur border to Dasna in UP, (iii) 22.23 km long 6-lane NH 24 with 2+2 lane service roads on either sides from Dasna to Hapur in UP, and (iv) a 31.78 km long greenfield 6-lane expressway from Hapur to Meerut.

Shri Nitin Gadkari also launched the use of plastic waste in National Highways construction at Delhi-Ghaziabad border. The Ministry of Road Transport and Highways Is encouraging the use of waste plastic in highway construction, especially on National Highways within 50 km periphery of urban areas that have a population of 5 lakh or more. A stretch of road has recently been constructed using waste plastic on NH-48 near Dhaula Kuan. A portion of Delhi- Meerut expressway and Gurugram- Sohna road have also been planned for construction, using plastic waste.

Plastic waste has already been used in wearing courses of National Highways construction on the pilot basis in the states of Tamil Nadu and Kerala. The technology used is following the guidelines of Indian Roads Congress for the use of waste plastic in Hot Bituminous Mixes in wearing courses. Construction of 1 kilometre of 4-lane highway can help in disposal of approximately 7 tonnes of waste plastic.

Laboratory as well as field performance studies carried out in India have identified many advantages of using waste plastic in bituminous mix for road constructions such as; Higher resistance to deformation, Increased durability and improved fatigue life and Improved stability and strength. This also reduces consumption of bitumen in the mixes. Besides, this process opens up an avenue for environment friendly disposal of waste plastic. Adding value to waste plastic will go a long way in curbing the menace of plastic littering, besides helping in disposal of tonnes of plastic waste in the years to come. NHAI has also planned to take up the task of long-term performance monitoring of National highways using plastic waste with bituminous mixes for evaluation of pavement performance. This will bring confidence amongst the practicing engineers.

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

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

6.1. Pradhan Mantri Matru Vandana Yojana Reaches One Crore Beneficiaries

IBEF, Sep. 20, 2019

Pradhan Mantri Matru Vandana Yojana (PMMVY), a flagship scheme of the Government for pregnant women and lactating mothers has achieved a significant milestone by crossing one crore beneficiaries. The total amount disbursed to the beneficiaries under the scheme has crossed Rs. 4,000 crores (US$ 572.33 millions)

PMMVY is a direct benefit transfer (DBT) scheme under which cash benefits are provided to pregnant women in their bank account directly to meet enhanced nutritional needs and partially compensate for wage loss. Implementation of the scheme started with effect from 01.01.2017. Under the ‘Scheme’, Pregnant Women and Lactating Mothers (PW&LM) receive a cash benefit of Rs. 5,000 in three installments on fulfilling the respective conditionality, viz. early registration of pregnancy, ante-natal check-up and registration of the birth of the child and completion of first cycle of vaccination for the first living child of the family. The eligible beneficiaries also receive cash incentive under Janani Suraksha Yojana (JSY). Thus, on an average, a woman gets Rs. 6,000.

Madhya Pradesh, Andhra Pradesh, Himachal Pradesh, Dadra & Nagar Haveli and Rajasthan are the top five States/UT in the country in implementation of PMMVY. Odisha and Telangana are yet to start implementation of the scheme. The Women and Child Development Ministry has recently organized regional workshops with state officials in Guwahati, Jaipur, and Chandigarh to prepare roadmap for faster implementation of the scheme.

Implementation of the scheme is closely monitored by the central and state governments through PMMVY-CAS, a web-based software application. The application is interoperable with UIDAI and Public Financial Management System (PFMS) for authentication of unique beneficiaries and their Bank Accounts. The Scheme is 100 percent Local Government Directory (LGD) compliant with a uniform master data of all villages/towns/cities throughout the Country on one platform, i.e. PMMVY-CAS. These features have helped in quick implementation of the scheme and eliminating duplication of benefits.

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

6.2. Sachin Bansal to open his third innings as CEO. Can he repeat Flipkart success?

Livemint, 29 Sep 2019, Deepti Chaudhary

Bansal will become CEO of Bengaluru-based microlender Chaitanya Rural Intermediation Development Services
Bansal has taken a majority stake in CRIDS for ₹739 crore

Bengaluru: Flipkart co-founder Sachin Bansal is embarking upon his third journey as a chief executive.

This time, the IIT-Delhi graduate is shifting gears from e-commerce and investments. In his latest avatar, Bansal will become the CEO of Bengaluru-based microlender Chaitanya Rural Intermediation Development Services Pvt. Ltd (CRIDS).

Bansal is part of a growing tribe of seasoned entrepreneurs, who have exited their businesses to either start a new venture or become business leaders in other companies.

Bansal has taken a majority stake in CRIDS for ₹739 crore. While he will assume the role of CEO, the founders of CRIDS will continue in their respective roles of growing existing business segments.

But can Bansal replicate his successful journey in Flipkart, which he led from 2007-16?

Starting from a two-bedroom setup in 2007, Flipkart became the most valuable startup in India when US retail giant Walmart picked up a 77% stake for $16 billion last year, offering the e-commerce firm a valuation of $21 billion.

Bansal, who had a 5.5% stake in Flipkart, made more than $1 billion from the deal, and late last year he started BAC Acquisitions Pvt. Ltd, a holding company to invest in startups.

Bansal has been the CEO of BAC since December, according to his LinkedIn profile, and has been investing in startups and lending institutions, largely in the form of debt. Through BAC, he has invested ₹250 crore each through debt in non-banking financial companies Altico Capital India Ltd and IndoStar Capital Finance Ltd.

Bansal has also invested $3 million each in debt in scooter-sharing startups Vogo and Bounce. This apart, he has invested $100 million in Ola and led a $51 million funding round in electric vehicle maker Ather Energy.

Industry observers say product-minded entrepreneurs such as Bansal and Kunal Shah, who founded fintech startup Cred after exiting his first venture FreeCharge, don’t appear to enjoy investing in companies because they prefer a hands-on approach by doing things themselves.

“They see things in a certain way and implement them. They have massive experience and want a chance to avoid the mistakes they made earlier," said Vivek Durai, founder of business information platform Paper.vc. “For second-time celebrity entrepreneurs, expectations in the market and from their peers are very high, so there is a huge fear of failure. So, they tend to choose these large vibrant markets, where capital is easy and they can focus on product."

Anil Joshi, managing partner at Unicorn India Ventures, believes Bansal was able to create a large online retail setup on the back of technology and could leverage the same experience in microlending.

“The Indian finance world is very traditional and technology offers opportunity to explore several business opportunities, which was not possible earlier," said Joshi.

While only time will tell if Bansal can create a behemoth such as Flipkart in the fintech space, many in the industry say he has the ability to pull it off.

“E-commerce is a lot about AI (artificial intelligence), ML (machine learning) and internet of things (IoT). Sachin knows these well," Joshi said. “Be it e-commerce or fintech, the underlying technology works on the same principle: understanding a customer’s behaviour and needs."

7.1. Cumulative no of Houses Sanctioned Under PMAY(U) now more than 90 Lakhs

IBEF, Sep. 27, 2019

The 47th CSMC has approved 630 proposals from participating States for construction of 1.23 lakh houses with an overall investment of Rs. 4,988 crores (US$ 713.69 billion). The commitment from the Government of India as Central assistance will be Rs. 1,805 crores (US$ 258.26 billion). With the approval of these proposals, cumulative sanctions of houses under PMAY(U)- mission has achieved milestone of more than 90 Lakh houses against the validated demand of 1.12 crore.

A total of ten states participated in the CSMC namely; West Bengal for 27,746 houses , Tamil Nadu for 26,709, Gujarat for 20,903, Punjab for 10,332, Chhattisgarh for 10,079, Jharkhand for 8,674, Madhya Pradesh for 8,314, Karnataka for 5,021, Rajasthan for 2,822 and Uttarakhand for 2,501 house.

So far, an overall investment of Rs. 5.54 lakh crore (US$ 79.26 billion) has been approved which includes Rs. 3.01 lakh crore (US$ 43 billion) from the Central and State Governments while Rs. 2.53 lakh crore (US$ 36.2 billion) as the private investment.

The Central Government has committed Rs. 1.43 lakh crore (US$ 20.46 billion) of which Rs. 57,758 crores (US$ 8.26 billion) have already been released. About 53.5 lakh houses have been grounded for construction of which construction of more than 27 lakh houses have been completed. Shri Durga Shanker Mishra, Secretary MoHUA, emphasized on efforts towards completion of projects to achieve "Housing for All" by 2022.

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

7.2. Syngenta opens agriculture research centre in Andhra Pradesh

IBEF: October 03, 2019

Syngenta, which is an agricultural company, has set up an innovation and learning centre at Bhimadolu village near Eluru, the district headquarters town of West Godavari, in Andhra Pradesh.

According to Erik Fyrwald, the CEO of the Syngenta, who was on a two-day visit to the country, said, "Providing food to the rising population of India and the world was a huge challenge and further it should be done in a sustainable manner, without harming the environment".

The company has succeeded in its attempt to provide solution in reducing the chemical pesticide and fertiliser use without reducing any output. It has provided innovative solutions to the farmers.

The company will set a seed care institute at Bhimadolu. The focus will be to provide customised solutions to the farmers. Dr. K.C Ravi, Chief Officer, Syngenta India, said the company would also focus on women engaged in agricultural activities.

Andhra Pradesh is among the leading agricultural states in India and therefore the company had chosen the location for institute.

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

8.1. India's fish production pegged at 12.6 million tonnes in '17-18

IBEF, Sep. 23, 2019

Addressing the media, the Union Minister of Fisheries, Animal Husbandry & Dairying Giriraj Singh said that the Union Government will invest Rs. 25,000 crore in the next five years to enhance infrastructure and boost production of fishes in India. The minister released the Handbook on Fisheries Statistics - 2018, published by the Department of Fisheries of Ministry of Fisheries, Animal Husbandry & Dairying, Government of India. The Handbook on Fisheries Statistics - 2018 is the 13th edition which presents useful statistical information for various aspects of Fisheries sector. The last (12th edition of) Handbook was published in 2014.

He said that Prime Minister Narendra Modi has given the due importance to this sector by creating a separate Ministry for it. Singh said that Fisheries sector will play a crucial role in the doubling of farmers' income. He further said that the Ministry will strive to further increase this 14 per cent growth rate in inland fisheries and are working towards creating more awareness among the State governments and the people.

The latest edition provides information on year wise fish production (Marine & Inland) from 1990-91 to 2017-18, trend of fisheries exports, fisheries resources, fishing craft, pattern of per capita fish consumption in different States/UTs, Grass Value Addition (GVA) from fisheries sector and its contribution to total GVA of the Country, fisheries institutes, fishermen population and various schemes implemented for sustained and responsible development of fisheries sector.

The Fisheries sector is major source of livelihood for over 1.60 Crore people along with double the number in down and upstream. Development of fisheries can ensure nutritional security, food security of India and provide employment in these regions that are predominately inhabited by rural populace.

The total fish production of 12.59 million metric tonnes was registered during 2017-18 with a contribution of 8.90 million metric tonnes from inland sector and 3.69 million metric tonnes from marine sector. The average growth in fish production during 2017-18 stands at 10.14 per cent when compared to 2016-17 (11.43 million metric tonnes). This is mainly due to 14.05 per cent growth in Inland fisheries when compared to 2016-17 (7.80 million metric tonnes). India is currently world's second largest producers of fish. It is also world number two in aquaculture production as well as in inland capture fisheries.

The percentage contribution of inland fish production in the total fish production of 29 per cent during the year 1950-51 and has increased to 71 per cent in the year 2017-18. Andhra Pradesh has recorded the highest production of inland fish (34.50 lakh tones) whereas Gujarat is the leading state in Marine fish (7.01 Lakh tonnes) in the country. Total registered fishing vessels and fishing crafts in coastal States/UTs was 2,69,047 as on 31.07.2019.

There has been steady growth in the export of fish and fish products over the period. Efforts are being made to boost the export potential through diversification of products for export. During 2017-18 the volume of fish and fish products exported was 13,77,243.70 tonnes worth Rs 45,106.90 crore. The export of Marine Fish products has registered growth of 21.35% (Quantity) and 19.11 per cent (Value) during the year 2017-18.

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

8.2. Low cost device for ocean states forecast and mapping potential fishing zones launched

IBEF, Oct. 10, 2019

For seamless and effective dissemination of emergency information and communication on disaster warnings, Potential Fishing Zones (PFZ) and Ocean States Forecasts (OSF) to fishermen, the Government today launched the Gagan Enabled Mariner's Instrument for Navigation and Information (GEMINI) device. Speaking at the inauguration ceremony in New Delhi, Union Minister for Earth Sciences, Science & Technology and Health & Family Welfare, Dr. Harsh Vardhan said "The satellite based communication is the only suitable solution for the dissemination of such emergency information and affordable satellite based communication system should be made part of the dissemination chain to deal with cyclones, high waves and tsunamis".

While PFZ Advisories provide information on the probable locations on fish aggregation in the seas, OSF provide the accurate state of the ocean. The Minister pointed out that "Ocean State Forecasts include the forecasts on winds, waves, ocean currents, water temperature, etc. at every 6 hours on daily basis for next 5 days helping fishermen in maximizing their earnings, ensuring safety and in planning of fishing activities".

Though the advisories and forecasts are disseminated through multiple communication modes, none of them could provide such information, including the disaster warnings when the fishermen move away from the coast beyond 10-12 km (typical ranges of mobile phones and VHF). That remained as a major limitation in disseminating the information to fishermen who go in the sea beyond 50 nautical miles; sometimes up to 300 nautical miles and beyond to conduct multi-day fishing.

This lacuna was severely felt during the Ockhi cyclone in 2017, when fishermen went out, for deep sea fishing before the onset of the cyclone and could not be informed about the developing cyclone. This communication gap resulted in loss of life, serious injuries to those rescued and severe damages to fishing boats and fishing gear.

To overcome this difficulty, Indian National Centre for Ocean Information Services (INCOIS), an autonomous body under the Ministry of Earth Sciences (MoES) joined hands with Airports Authority of India (AAI) to utilize the GAGAN (GPS Aided Geo Augmented Navigation) satellite system to transmit the PFZ, OSF and disaster warnings to fishermen with GAGAN system consisting of three geosynchronous satellites (GSAT-8, GSAT-10 and GSAT-15). GAGAN footprint covers the entire Indian Ocean round the clock. To receive the messages transmitted through the GAGAN satellites, INCOIS together with AAI developed a low-cost GAGAN system-enabled GEMINI (GAGAN Enabled Mariner's Instrument for Navigation and Information) device and electronically designed and manufactured by a private industry M/S Acord, Bangalore under Make in India Program. The GEMINI device receives and transfers the data received from GAGAN satellite/s to a mobile through Bluetooth communication. A mobile application developed by INCOIS decodes and displays the information in nine regional languages.

On the occasion, Dr. Harsh Vardhan also inaugurated the PFZ forecasts, newly developed by INCOIS which will provide advisories on PFZ to fishermen 3 days in advance. The Minister stated "PFZ advisories have become part of the value chain of the fishing community, over 6 lakh fishermen are regularly accessing advisories directly through their mobiles to avoid the wastage of time for searching shoals of fish". The PFZ forecasts are generated using numerical models operationalized by INCOIS and helps overcome the operational difficulties in providing the PFZ advisories during overcast skies based on satellite data.

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

9.1. Three new ayush hospitals in Rajasthan, Jharkhand and Odisha Upgradation of 306 Ayush hospitals

IBEF, Sep. 25, 2019

Shri Shripad Naik, the Minister of State (I/C), Ministry of AYUSH has informed that 3 New AYUSH Hospitals have been set up in Rajasthan, Jharkhand and Odisha during the 100-day period of the present government while 306 Ayush hospitals have been upgraded. The essential medicines have been supplied and sanctioned to more than 11,980 Hospitals and dispensaries which will benefit more than 2.9 crore patients, the minister informed. The support to 2,853 PHCs with co-located AYUSH Centres has been extended during the period for medicines and contingencies which will benefit 64.6 lakh patients. Shri Naik was addressing the media on achievements of Ministry of AYUSH during the first 100 days of the present Government. Shri Rajan Vaidya Katoch, Secretary, AYUSH and senior officials of the ministry were also present at the conference.

Pointing out that the Health insurance for AYUSH treatments is essential for increasing the access for the public to AYUSH healthcare, Shri Naik informed that the Ministry of AYUSH has been pursuing the expansion of insurance cover for AYUSH procedures diligently. He also informed that a proposal for inclusion of 19 AYUSH packages in PM-JAY has been finalised and submitted to the National Health Authority. “We have also finalised the guidelines for expanding insurance to additional AYUSH treatments, and the response of the Insurance Companies to this has been positive” added the AYUSH Minister.

The AYUSH Minister further informed that his Ministry has set a target to operationalise 4,200 AYUSH Health and Wellness Centres (HWCs) under Ayushman Bharat Scheme during 2019-20. He also added that after scrutiny of proposals from States, 1,754 HWCs from different States/ UTs are sanctioned, and funds for 1,037 HWCs already released.

The Minister shared the commitment of the Ministry for strengthening the AYUSH health services in States / UTs and informed that an amount of Rs. 325 crore (US$ 46.50 million) funds has been released to states for activities under NAM after due scrutiny of proposals. While highlighting the efforts of the Ministry of AYUSH in medicinal plants cultivation, the AYUSH Minister informed, “Proposals related to Medicinal Plant cultivation have also been supported. State Action Plans from 17 States were finalised, covering approximately 6500-hectare area, and costing around Rs.36.00 crore (US$ 5.15 million). This will benefit over 3000 farmers and will include establishment of 44 nurseries and 16 processing units.” To observe the 150th anniversary of the Father of the Nation, 150 mega Naturopathy camps will be held in different States during the one-year period from 2nd Oct 2019.

To globalise AYUSH systems, the Minister informed that efforts in this area “have yielded notable success”. “The BIMSTEC nations with whom we share excellent political and social equations have agreed to jointly set up a BIMSTEC University of Ayurveda and Traditional Medicine in India. Another significant development has been the Country to Country MoUs signed with Gambia and Guinea, in July and August respectively, for joint efforts in promotion of Traditional Systems of Medicine and Homoeopathy. In another landmark development, a MoU signed between India and China on 12th August 2019. This will see the world’s two largest Traditional Medicine Administrations collaborating for the benefit of the people of the two countries”, added the Minister.

The promotion of research activities in AYUSH Systems based on modern approaches is a priority area for the Ministry and an outlay of Rs. 490 crore (US$ 70.11 million) is anticipated over two years for this project, which is expected to create a world-wide impact”, shri Naik informed and said that a high impact Research project on introducing Ayurveda intervention in Reproductive and Child Health (RCH) in Public Health was operationalised in Primary Health Centres of Gadchiroli District of Maharashtra. “This will have 10,000 expecting mothers as subjects, a huge sample size for a medical research project. The project is expected to establish the effectiveness of Garbhini Paricharya, the traditional Ayurvedic intervention for Ante-natal care” he added.

“The Central Research Councils of Ayurveda, Unani and Siddha together validated 110 classical formulations for 60 conditions during this period, completed by generating evidence on clinical safety and efficacy” informed the AYUSH Minister. The 10 National Institutes functioning under the Ministry of are setting new benchmarks for education in their respective disciplines. The upgradation of National Institute of Ayurveda (NIA), Jaipur is under way, and procurement of 1.37 acres of land for building 2nd campus of NIA, Jaipur finalized. All India Institute of Ayurveda, Sarita Vihar has signed an MoU with Lal Bahadur Shastri National Academy of Administration, Mussoorie for setting up an Ayurveda Wellness Centre at the Academy and has finalized the project plan for the same. To popularise yoga in the world, observation of the International Day of Yoga 2019 on 21st June 2019 resulted in the participation of more than 13 crore people across the country.

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

9.2. Fresh Express puts women first

Fruitnet.com, 4 Oct. 2019, Maura Maxwell

The company’s ‘Grape with a heart’ campaign is empowering women across rural Maharashtra

Indian grape grower-marketer Fresh Express has launched a new initiative aimed at empowering women producers in the state of Maharashtra in collaboration with leading European retailers.

The ‘Grape with a heart’ campaign uses a four-pronged approach to tackle the biggest challenges facing rural agricultural communities in India: women’s empowerment, education, natural farming and water conservation.

Under the scheme, the family-owned company, which exports around 4,500 tonnes of table grapes a year to 17 countries under its Unigrape brand and employs more than 600 people – mostly women – at the height of its season, will contribute a percentage of the sales value of every punnet sold to programmes covering these four key areas.

The campaign will feature eye-catching interactive in-store displays and be supported through print and digital media highlighting the personal stories of some of the company’s women farmers.

A commitment to socially-responsible, natural farming is deeply embedded in the company’s philosophy. Under its slogan: ‘Naturally-farmed, Fairtrade fresh produce fuelled by Women Power!’ it aims to bring about a green revolution in the corner of western Maharashtra where its production is located and transform the lives of its workforce.

“More than 95 per cent of our workforce are women and we are proud to support them,” says Nina Patil, who founded Fresh Express 26 years ago with husband Ranjeet. “Our social programmes are designed specifically for the needs of the community.”

Historically, women in India have had limited financial independence – most do not have a personal bank account and often have to rely on money given to them by their husbands.

“Such a structure of dependence severely limits their opportunities to take on leadership or decision-making positions in society,” Patil explains. “We wanted to bring about a change where the woman learns to be economically independent and has control over her undertaking from end to end, without depending on men to provide her financial support.”

Efforts by Fresh Express’s technical agronomist team to develop more natural farming methods have so far brought about a 33 per cent reduction in chemical usage. Employing cutting-edge technologies, the company’s Zero-Budget Natural Farming programme allows even the smallest and poorest farmers to grow chemical-free food with minimal water usage and at minimal cost.

An example of this is the concept of Biological Brewing, wherein natural extracts mixed with effective microorganisms and seaweed and left to ferment. When added to the soil, the resulting mix improves soil health, enhances fertiliser input, improves root structure and germination and increases yield.

“Each household, led by the housewife, will set up a bio-brewing unit to produce enough brew to not only maintain an organic kitchen garden for her own family, but also grow enough to sell in the local market,” Patil explains.

Another part of the strategy is to encourage the women to sell surplus vegetables for processing into organic sauces and pickles.

“All of these avenues, besides providing an income, give women an immense confidence and satisfaction as she fully involvers herself in the complete process from growing to marketing her produce,” Patil continues.

As most of these women are employed in seasonal jobs like grape picking, they spend much of the year as stay-at-home-wives. Fresh Express has launched a self-help group, Sakhi (meaning friend in the local language), which teaches life skills such as sewing, jewellery making and decorating earthen lamps, as well as natural farming. They are encouraged to sell what they make online through international platforms in order to become more self-reliant.

“Workshops on topics such as marketing, negotiation, hygiene and food safety are also planned to help them to value the importance of their work and gain confidence to come to the forefront, take initiative and ownership for what is rightfully theirs,” says Patil.

The company draws on a wealth of international support to develop its ground-breaking initiatives, including the Cherie Blair Foundation for Women UK; the Fairtrade Foundation, and Global Women Fresh. Its efforts have also been recognised by the Austrian government which has chosen the company to be part of its Austrian Leadership Programme.

Patil, a firm believer in the power of direct action, hopes that by telling consumers about these programmes and sharing individual success stories they will be encouraged to get involved.

“How they would like to contribute is up to them. It could be financially, or by offering technical expertise or suggesting ways to improve our programmes. And they are, of course, welcome to come to India and participate directly by volunteering to teach skills which can benefit the women,” she says.

“Ultimately, our goal is to encourage, educate and empower women towards financial independence so that they can made independent decisions on how to spend or save their income.

“When the women of our community share stories with us, we see a bright future – not only for them, but also for their young daughters for which they are setting an example.”

10.1. Govt set to make BIS standard must for tap water in select cities

IBEF, Oct. 04, 2019

As per the Minister of Consumer Affairs, Mr. Ram Vilas Paswan, consultation process to make the mandatory compliance of BIS quality standard will be soon started by Centre for the tap water to begin with in the national capital, state capitals and 100 smart cities. Also, Delhi government and Jal Board authorities have no reservations on making the BIS standard mandatory for tap water, he added.

Randomly collected samples of tap water from 11 areas in the national capital has showed that water was not safe for drinking and did not conform with BIS standard.

The Bureau of Indian Standards (BIS), the national body that frames quality norms for products and services and works under the Ministry of Consumer Affairs, has set standards for the drinking water but are voluntary in nature.

"After looking at the preliminary report of tap water supplied in Delhi, we are thinking of making mandatory the BIS standards on tap water at least in the national capital, state capitals and 100 smart cities," Paswan told reporters. He added, a letter will be issued to the state governments to seek their point of view on the said matter. For collecting the samples of the tap water, BIS team has been already been sent to state capitals also to test if they comply with BIS quality standard or not.

"This will take a month. The report will come by November first week. We will get to know which state supplies safe drinking water at least in the capital city. The ranking will be given," the minister added.

With respect to the quality of tap water in Delhi, as per the preliminary report, the sample collected from 11 areas in Delhi do not comply with BIS standards, Paswan said. "We have received second lab report. We will share in detail about the samples after we get the final lab report," he said adding that the samples include water collected from his house (10, Janpath) and the office in Krishi Bhawan.

The lab report was discussed in a meeting with senior officials of the Delhi Jal Board (DJB), New Delhi Municipal Corporation (NDMC), BIS, Union Jal Shakti and the Food Safety and Standards Authority of India (FSSAI), he said.

Currently, the BIS quality standards are mandatory for only packed drinking water and 140-odd other products. The Centre can make it mandatory for any product or service keeping in view health of the larger public of the country.

Besides state governments, the views of the concerned Union ministries -- Health, Jal Shakti and Urban Development -- have to be taken for making BIS standard mandatory for tap water.

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

10.2. Oyo to raise another US$ 1 bn as it adds stars to its hotels

IBEF, Sep. 23, 2019

Oyo is eyeing US$ 750 million to US$ 1 billion in fresh funds in its parent company Oravel Stays over the next few months, according to sources close to the development. The SoftBank Group might lead the funding round, which will push Oyo's valuation to US$ 13.5-15 billion.

Oyo is likely to spend the funds on massive diversification, an executive in the know told this newspaper. Among other things, the Ritesh Agarwal-led group is planning to manage and operate five-star and luxury properties globally.

This fresh round of funding is separate from the recent US$ 1.5 billion share buyback orchestrated by Agarwal. The firm was valued at close to US$ 10 billion at that point. The Competition Commission of India has approved Agarwal's share buyback plan.

Oyo has undergone wholesale corporate restructuring, setting up several subsidiaries and bifurcating operations globally.

Agarwal has moved from executive director to a non-executive director in Oyo’s India operation to allow him to take up a more active role in the global operations of Oravel Stays Singapore Pte.

"It is our ultimate holding entity for all our global operations. My deeper engagement in the global business is a natural progression, given our continued growth over the last couple of years and the opportunities in the US, Europe, China, and Southeast Asia," said Agarwal in a recent interview to Business Standard.

He added that the move was part of ongoing structural changes introduced over the last year as Oyo expanded its global operations. It did not, he said, alter his commitment to India, a key home market which continues to grow. Moreover, he will continue to be on the board of Oyo's global parent entity, Oravel Stays.

Sources said Oyo's investors have been waiting for it to go through this corporate restructuring before the next funding round. Globally, the company has been trying to diversify its portfolio. In the next level of growth, it plans to take up luxury hotels in India and abroad. Sources said around 25 ‘ultra-luxury’ properties might be opened globally over the next few months.

Oyo has been on the lookout for property companies, which will acquire these hotels, while Oyo will be the day-to-day operating partner.

Sources said that the lion's share of the next round of funding will be earmarked for acquiring these luxury properties. The remainder will be spent on adding more co-working, co-living, and student housing spaces, which the company is so bullish about that it might take these operations abroad.

In some cases, Oyo has also been acquiring a minority stake in property companies. It has partnered with Gurgaon-based hospitality firm Mountania Developers to acquire and redesign an Ahmedabad-based property into a luxury hotel.

"In future, most of the luxury properties Oyo decides to run will be mostly taken up by Mountania in India. Globally also, Oyo is finding such partners," said a source.

The company recently rebranded Hooters Casino Hotel in Las Vegas as a 657-room and 35,000 square-foot casino called Oyo Hotel & Casino Las Vegas in partnership with hospitality investment and management company Highgate.

Oyo claims to have a strong balance sheet, with over US$ 1.5 billion and over a million rooms under management across hotels and homes globally, of which 200,000 are in India.

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

- INDUSTRY, MANUFACTURE

11.1. L&T Construction bags Rs 5,000-7,000-cr Navi Mumbai residential project

IBEF: September 12, 2019

Infrastructure company Larsen & Toubro (L&T) on Monday said its construction arm has bagged contract from the City and Industrial Development Corporation of Maharashtra Ltd (CIDCO) to construct 23,432 dwelling units at various locations in Navi Mumbai.

The company did not provide the value of the contract but said the order falls under the 'major' category, which ranges between Rs 5,000 crore (US$ 715.41 million) and Rs 7,000 crore (US$ 1 billion) according to the classification of contracts.

"The Buildings & Factories business of L&T Construction has secured a prestigious residential project from the City and Industrial Development Corporation of Maharashtra Limited (CIDCO) to construct 23,432 dwelling units with on-site infrastructure works at various locations in Navi Mumbai," L&T said in a regulatory filing.

L&T said the project, being part of the Pradhan Mantri Awas Yojana (PMAY), envisages construction of Economically Weaker Section (EWS) and Low-Income Group (LIG) type of dwelling units.

The building configurations vary from 13 to 20 storeys. This is a fast track project to be completed within stringent timelines, the company added.

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

11.2. Grofers to add 700 kirana stores onto network, eyes $1 bn revenue by year-end

IBEF, Sep. 30, 2019

Grofers, which is backed by Softbank, aiming to reach US$ 1 billion revenue mark by end of the current year. This comes as the support of both online and offline businesses. The company started its business as an online grocery platform. Earlier this year, it is announced that its working with brick-and-mortar stores in Delhi-NCR to convert them into its own branded outlets.

"In the first phase, we associated with 100 stores and currently we have 300 stores under the program, and this will be scaled to 1,000 by year-end, all in Delhi NCR region," Grofers founder Mr. Saurabh Kumar told.

The further plan is to expand this programme to cities like Mumbai and Bengaluru by the end of the year, Kumar added.

Kumar further added "We are aggressively growing our business and aiming to clock USD 1 billion in revenue by end of 2019 with a significant focus on our in-house brands in 2019. Our G-brands contribute 40 per cent to our current revenue, and we plan to increase it to 60 per cent in the coming years."

According to Kumar, the distribution expansion to offline Kirana stores have helped the company to increase its penetration in the market with G-brands.

The offline model has helped the business. He added "We help partner stores optimise their operations and improve their profitability by accessing our supply chain and technology."

This has also pushed the private label products of the company in market as well and thus, the company plans to expand into new markets and are aiming to partner with 50,000 offline stores in next 30-36 months.

The stores that are converted into Grofers branded stores and they sell Grofers' private label products that are usually priced 30-40 per cent less.

The product range of Grofers include categories like kitchen staples, FMCG products, personal hygiene products and household needs.

The company also aims to increase its range to 1,500 products by the end of 2020, Kumar said.

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

12.1. Factory jobs have seen a revival

Livemint, 09 Oct. 2019, Pramit Bhattacharya, Nikita Kwatra

Latest Annual Survey of Industries data confirms a slow but steady recovery in factory jobs since 2013, with auto, pharma, apparels leading the growth

An encouraging set of data from India’s largest factory database seems to have gone largely unnoticed amid rising concerns about an intensifying economic slowdown and the threat of job losses in the country.

The provisional Annual Survey of Industries (ASI) numbers for the fiscal year ending March 2018, released a couple of weeks ago, show that new jobs for both blue-collar and white-collar workers rose to their highest levels in half a decade in fiscal 2018. The results are based on the annual survey of more than two hundred thousand factories across the country, employing more than 15 million employees.

After showing a sharp decline in fiscal 2013, when India was faced with a near-economic crisis, factory jobs have been rising over the past few years. The latest data confirms a slow but steady recovery in factory jobs since 2013.

The latest numbers on annual growth of workers (4.8%) and managers (4.5%) do not qualify as a boom. The last factory jobs boom India witnessed was in the 2004-08 period, when the blue collar workforce grew at an average annual pace of 8%. In the four years leading to fiscal 2018, the average growth rate was much more modest at 4%.

However, the boom phase was preceded by a sharp contraction in the factory workforce in the years leading up to the boom. In four of the five years between fiscal 1999 and fiscal 2004, the factory workforce actually shrank in size. As a result, a part of the boom that followed merely replenished the diminished stock of workers across India’s factories.

Like all booms that went bust after the financial crisis of 2008, factory job growth also slowed down in the post-crisis era. Nonetheless, the slowdown was not as severe as the one in the early 2000s. The upswing too has been more modest.

Besides, as in the rest of the world, almost all indicators of economic activity in India --- other than the disputed gross domestic product (GDP) numbers --- have grown at a more modest pace in the post-2008 era than they did in the pre-2008 era.

Data from annual reports of companies broadly corroborate the trend reported by ASI, with job growth picking up over the past few years after a slowdown in the first half of the current decade. Compensation data from ASI and corporate balance sheets also point to a gradual --- even if slow --- recovery in real wages (adjusted for inflation).

How do these data square with the numbers from the Periodic Labour Force Survey (PLFS) conducted in 2017-18?

The comparable numbers from the PLFS survey relate to workers in regular or salaried jobs (although this category includes more than just those employed by registered factories and large companies). For regular workers, the picture is less gloomy than what the headline numbers suggest. Compared to the previous employment survey conducted in 2011-12, the PLFS reported a 5 percentage point increase in the proportion of regular workers to 23% in 2017-18.

It is also worth noting that since the PLFS was conducted after a gap of six years, it fails to capture both the jobs slowdown and the recovery in the intervening years that the other (annual) datasets report.

It only shows the net result at the end of the period (a modest increase in regular jobs). It is another matter that the government’s economic managers did not care to look at those numbers carefully, and hurried to hush up the report on the eve of elections, creating an impression that the job market situation is far more grim than what the evidence suggested.

Be that as it may, the ASI numbers indicate that India’s post-crisis industrial recovery has not been ‘jobless’ even if both the quantity and quality of employment leave much to be desired.

Three key sectors have driven the job-creating engine in the post-crisis era: auto, pharma, and apparels.

The share of all three in India’s factory workforce have risen significantly over the past decade even as that of three other labour-intensive industries --- textiles, food products, and basic metals --- declined sharply. Despite attempts to boost electronics production in the country, the share of workforce employed in the ‘computers and electronics’ industry actually shrank over the past decade, and accounts for just over 1% of the factory workforce. Electrical equipment showed a more promising trend, with its share in the factory workforce increasing 0.5 percentage points to 3.7 percent over the past decade.

The latest data point to two worrying trends in India’s industrial landscape. The first relates to growing regional imbalance. Only a few states in the country account for most factories and factory workers in the country. The top three states --- Tamil Nadu, Maharashtra, and Gujarat --- together account for four of ten factory workers in the country. And their share has risen over the past decade.

The other worrying trend pertains to the lack of investments in fixed assets. In four of the past five years for which data is available, investments in factories have declined. Only in fiscal 2016 did investments show a positive trend, rising 17%. The investment declines were particularly sharp in fiscal 2015 (-8.5%) and fiscal 2018 (-10.3%).

Unless India’s financial sector weaknesses are fixed, and overall demand in the economy recovers, factory investments could continue to suffer. This would take a toll on jobs, and the recovery in factory employment could come to a halt once again.

12.2. Lee Fixel sets sights on Indian startups again, may invest $1 billion

Livemint, 15 Sep. 2019, M. Sriram, Varsha Bansal

Former Tiger Global exec plans to invest in Indian firms when non-compete agreement with his former employer expires, which might be as soon as next month
Fixel has held conversations to invest personally in a $24 million seed round at fintech startup Amica Tech

Mumbai/Bengaluru: Lee Fixel, the former Tiger Global executive responsible for the firm’s most lucrative India investments, is set to return to his favourite stomping ground as early as next month; this time with his own money, three people directly aware of the matter said.

Fixel is looking to invest around $1 billion through his new fund, Addition, as soon as a non-compete agreement with his former employer expires, the people said, requesting anonymity. He plans to actively look at startups in India and also in South-East Asia, they said.

As the head of Tiger Global’s private equity business, Fixel led the firm’s investment in Flipkart. Walmart later bought a majority stake in Flipkart, giving the US fund its biggest pay-off in India so far.

Fixel was also the architect of Tiger’s other early bets on unicorns such as Ola, Delhivery and Quikr. At Tiger, Fixel was known for his speed of decision-making, often writing a fat cheque just after a brief Skype interview with founders. His aggressive investment approach took peers by surprise, but also earned him global attention.

He has also led lucrative investments in tech giants such as Facebook, LinkedIn and music streaming service Spotify.

“He (Fixel) has set up Addition to invest in tech startups in the areas where Tiger used to invest earlier, and more, and once the non-compete expires in a month or so, he will look at deals actively," said a close associate and partner at a top venture capital firm.

Fixel is already in talks with a few Indian startups to sign cheques. He has held conversations to invest personally in a $24 million seed round at fintech startup Amica Technologies, said two people close to the development, separate from the three cited earlier. Amica has been founded by Jitendra Gupta, a former managing director at Naspers-owned PayU India. Sequoia Capital and Matrix Partners are expected to invest as well, The Economic Times reported on 9 August. Gupta declined to comment.

A spokesperson for Fixel confirmed the development, but declined to comment on specific deals and plans. Tiger informed its investors in a letter in March that Fixel might invest his own money and is expected to start a fund.

On Forbes’s “The Midas Touch" list, Fixel appeared six times in the past 12 years, Mint reported in a profile published on 19 March, after he resigned from Tiger. Fixel’s confidant and head of Tiger’s India operations, Kalyan Krishnamurthy, too moved to lead Flipkart, from which Tiger realized $3 billion when Walmart bought a majority stake in Flipkart last year.

Since Fixel announced his departure in March, Tiger’s Indian investments have been headed by Scott Shleifer, under whom Tiger has returned to Indian startups after staying away from fresh bets for over two years. This year Tiger has invested over $400 million in more than 15 startups, including agri-tech startup Ninjacart, home services firm UrbanClap and bookkeeping firm OkCredit, shows a Mint analysis.

“Lee’s non-compete clause with Tiger Global also included that he will not invest in any of the Tiger’s investee companies," said one of the first three people cited earlier. “This is also part of the reason why Tiger has been so aggressive with its investments."

Addition’s possible entry comes along with that of a multitude of investors including private equity funds, pension and wealth funds that want to invest more in Indian startups.

“Investors of all sorts—HNIs (high net worth individuals), PE funds and others—are very keen to invest in Indian tech startups because they have seen exits and money being made, which is a big confidence booster," said Anand Lunia, partner at India Quotient, an early-stage investor. “The underlying parameters needed for a startup to grow, such as internet adoption, UPI and banking reforms are growing very rapidly," he added.

13.1. Natco Pharma lines up 20 'Para IV' products

IBEF, Sep. 16, 2019

Natco Pharma has around 20 key 'Para IV' products in the pipeline out of which some are expected to be launched in due course.

Para IV products are the product for which the company first needs to submit a completed ANDA (Abbreviated New Drug Application) and get marketing exclusivity for 180 days. This gives benefit to the manufacturers.

According to norms set by the US Food and Drug Administration (USFDA), a company can get approval from FDA to market a generic drug before the expiration of a patent relating to the brand name upon which the generic is based.

Natco, a Hyderabad-based company, has Para IV products such as Nexavar (brand) molecule Sorafenib (Cancer/Kidney & Liver), Revlimid (brand) molecule Lenalidomide (Cancer/Multiple Myeloma), Ibruvica (brand) molecule Ibrutinib (Cancer/Leukaemia), Sovaldi (brand) molecule Sofosbuvir (Antiâ€Viral/Hep-C), Tarceva (brand) molecule Erlotinib (Cancer/NSCLC & Pancreatic) and Aubagio brand molecule Teriflunomide

(CNS/Multiple Sclerosis), as per information given for investors. According to the company, "In the US market, the focus will be on the complex generics". The focus of these products is mainly on the oncology segments.

The company has also been focusing on the domestic oncology segment and enjoys market leadership in sales of branded oncology medicines in India. The products range has 29 products in last financial year from 6 in 2003. The revenue has seen a compounded annual growth rate of 16 per cent over last four years and stood at Rs. 396.8 crore (US$ 56.77 million) in FY19.

The company has increased its spend on research and development from 6.8 per cent in FY16 to 9.3 per cent in FY19. It has over 442 scientists and around 40 R&D laboratories in two research facilities.

Although, the company has posted its first quarter report with a decreased in net profit of 21 per cent at Rs. 143 crore (US$ 20.46 million) and the total revenue declined 10.65 per cent at Rs. 513 crores (US$ 73.40 million) compared to year-ago period.

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

13.2. Why pharmaceutical MNC stocks are beating their Indian peers hands down

Livemint, 18 Sep 2019, Clifford Alvares

Pharma MNCs are riding on innovation and are operating in niche therapies where there is less competition
US FDA inspections leading to cancellation of some drug launches in the US market has now impacted most Indian companies

Mumbai: Stocks of multinational pharmaceutical companies have outclassed their Indian peers this year, and chances are they could continue to maintain their edge in the near future. An index comprising of seven MNC pharma companies delivered returns of 9.3% since April this year as compared to a drop of 13% drop in a set of 20 Indian pharma stocks, data compiled by Mint Research shows. That results in an outperformance of as over 25%.

A combination of high domestic growth and better products in the domestic market are some of the key drivers for MNC pharma stocks.

"MNC pharma companies focus on a few brand products and enjoy premium pricing on these products as they are restricted to the top-end of the market. They also are 100% focused on the India market where there is less regulatory risk and on growing fewer premium brands in the domestic market. Whereas Indian pharmaceutical companies have about 30% of their revenue coming from the domestic market, and the rest is from overseas businesses. This exposes them to regulatory, currency and geopolitical risks which has an impact on their performance," says Krishnanath Munde, senior analyst, Reliance Securities Ltd.

No doubt, overseas exposure did boost the prospects of Indian pharmaceutical companies a few years ago, but US FDA inspections leading to cancellation of some drug launches in the US market has now impacted most Indian companies.

MNC pharma companies, on the other hand, are riding on the innovation done by their parent companies and are operating in niches and therapies where there is less competition. This gives them an edge in the domestic market. "Some MNC pharma companies are into chronic therapies, which can persist for life, which is why MNCs command a valuation premium too," notes Munde.

Besides, these companies have traditionally had negligible debt on their balance sheets and better dividend payouts.

A drawback is that many of these MNC companies are not highly liquid or heavily traded, which results in a higher impact cost for investors who want to take large positions. As their stock prices have also run up significantly, some of these stocks are beginning to quote at astronomical valuations.

Astra Zeneca, for instance, quotes at a price-earnings multiple of 74 times trailing twelve- month earnings. Correspondingly, most Indian pharma companies quote at lower than 20 times earnings on the bourses. Hence, given the run up in MNC pharma companies and some lofty valuations, a health check-up of these stocks may do no harm.

14.1. Tax incentive for new firms could spark ‘make in India’ for EV parts

Livemint, 23 Sep 2019, Amit Panday

The govt’s steps are likely to boost local production of Li-ion batteries, charging equipment and other parts
The FM said new manufacturing companies set up on or after 1 October will pay income tax at the rate of 15%

MUMBAI: India’s fledgling electric vehicle (EV) industry is likely to receive a shot in the arm with the slashing of corporate tax on new manufacturing companies.

With most makers of electric vehicles and their components planning their investments for India, they would be encouraged to accelerate their plans for local manufacturing with the announcements made by finance minister Nirmala Sitharaman. The steps are expected to propel domestic production, specifically in producing lithium-ion batteries, charging equipment, electrical and electronic parts. Producers of hybrids and even conventional internal combustion vehicles will also benefit.

“With falling rupee, imports have become expensive. Logically, the manufacturing companies will look at increasing localization of components in India under the newly announced tax regime for new units. This will boost overall manufacturing activities," said Vinnie Mehta, director general of Automotive Component Manufacturers Association of India (Acma).

The auto industry, along with its vast auto ancillary supply chain, accounts for 49% of India’s manufacturing GDP.

Sitharaman announced that new manufacturing companies set up on or after 1 October will pay income tax at the rate of 15%. The benefit will be available to companies which do not avail any other incentive and commence production on or before 31 March 2023. The effective tax rate for these companies will be 17.01% inclusive of surcharge and cess. Also, such companies will not be required to pay minimum alternate tax.

A rush of new manufacturing companies linked to the EV sector will bolster the Modi administration’s efforts to grow EV sales by making them more affordable and also cut costly crude oil imports as well as high levels of pollution in most major cities.

Earlier, the Union government had allotted ₹10,000 crore to accelerate EV adoption in India under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India, or FAME 2, scheme.

For now, most of the critical electrical and electronic parts for vehicles made in India continue to be imported.

“Maruti Suzuki cars have about 90% localized content, given that some key electronic components are still imported. But we want to make in India. If anybody can make key electronic components in India with quality and reliability, it will help not only your company but the entire Indian automobile industry," Kenichi Ayukawa, managing director and CEO of Maruti Suzuki India Ltd, said at a gathering of suppliers at Acma’s annual session in New Delhi on 6 September.

“This could help attract investment in a few select sunrise industries around lithium-ion batteries, charging equipment and power electronics. There are quite a few global players who are evaluating manufacturing in India and this decision should help in building a stronger business case," said Rajeev Singh, partner at Deloitte Touche Tohmatsu India Llp.

Ashish Modani, vice president of Icra Ltd, said: “Since the electronic content per car is growing every year, new tax concessions may drive localization in electronic components for automobiles. But certain parts like airbags, sensors, inflators and others may continue to be imported."

The latest steps by Sitharaman will complement the decisions announced in her maiden budget presented in July. The finance minister offered income tax rebates of up to ₹1.5 lakh to customers on interest paid on loans to buy electric vehicles, with a total exemption benefit of ₹2.5 lakh over the entire loan period. The minister also announced customs duty exemption on lithium-ion cells, which will help lower the cost of lithium-ion batteries in India as they are not produced locally. Makers of components such as solar electric charging infrastructure and lithium storage batteries and other components will be offered investment-linked income tax exemptions under Section 35AD of the Income Tax Act, and other indirect tax benefits.

Vinodkumar Ramachandran, India head of industrial and automotive sectors at KPMG Advisory Services Pvt. Ltd, said tax concessions for new manufacturing units will be an encouragement.

“There are lot of new technology areas and need new companies to set up greenfield investments," he said, warning that tax incentives alone may not help. “End driver will be the demand for EVs and new automotive component technologies," he said. “As of now, investment appetite is quite low given the slowdown. Most auto component companies are in cash conservation mode to manage their liquidity. They will need a strong revival of overall segment to lead to fresh investments. I think already significant investments are on hold due to the poor demand situation."

On a possible push by automakers to revive overall weak demand in India, Chirag Jain, an analyst at SBICAP Securities, suggested that the government’s initiatives will boost earnings by 3-8%, as most auto companies pay taxes in the range of 28-34% currently.

“However, in the current weak demand environment, together with high channel inventory ahead of BS VI (Bharat Stage VI) transition, we believe OEMs (original equipment manufacturers) will likely pass on these benefits to revive demand through higher discounts to customers, which otherwise would have come largely at the cost of margins," said Jain.

A rush of new manufacturing companies linked to the EV sector will bolster the Modi government’s efforts to grow EV sales by making them more affordable and also cut crude oil imports. The auto industry, along with its vast auto ancillary supply chain, accounts for 49% of India’s manufacturing gross domestic product.sunil ghosh

14.2. Ministry of Tourism launches Audio Guide facility App "Audio Odigos" for 12 sites of India (including Iconic Sites)

IBEF, Oct. 04, 2019

On the second day of nationwide "Paryatan Parv 2019" Shri Yogendra Tripathi, Secretary, Ministry of Tourism in the presence of DG, ASI Smt. Usha Sharma launched the Audio Guide facility Audio Odigos for 12 sites of India (including Iconic Sites). An MoU for Gol Gumbad, Delhi with Government of Delhi and Resbird Technologies was also exchanged for the development of Tourism Amenities during the programme at Paryatan Parv New Delhi, today.

Speaking on the occasion Shri Yogendra Tripathi said that this is the 3rd edition of Paryatan Parv and we are getting good response from general public. We are expecting more than 1 lakh footfalls during the weekend, he added. He also said that in the line of vision of Prime Minister we are not using single use plastic in Paryatan Parv arrangements.

While briefing the media, the Secretary said that today 26th MoU under the 'Adopt a Heritage, Apni Dharohar Apni Pehchan' scheme of Ministry of Tourism has been exchanged for development of Tourism Amenities. The project aims to develop synergy amongst all stakeholders and involves active participation of local communities / players to promote 'responsible tourism'.

He further said that the response to the project has been very encouraging as agencies that have come forward, include not only public and private industry/ individuals but also schools and law firms. Earlier, 42 Letters of Intent have been issued to 38 agencies for 106 sites and 25 Memorandum of Understanding (MoUs) have been signed with 12 agencies for 23 sites and two technological interventions under the project across India.

Shri Yogendra Tripathi said that Ministry of Tourism's scheme "Adopt a Heritage: Apni Dharohar, Apni Pehchaan", is a collaborative effort between the Ministry of Tourism, Ministry of Culture and Archaeological Survey of India (ASI) and State Governments / UT Administrations. It aims at involving public sector companies, private sector companies and corporate citizens/individuals to take up the responsibility for making our heritage and tourism more sustainable through development, operation and maintenance of world-class tourist infrastructure and amenities at ASI/ State heritage sites and other important tourist sites in India.

The secretary also said that today we have launched Audio Guide: Audio Odigos, for the benefit of the tourists. Audio guide odigo offers Government of India verified content, with visuals & voice over support. With Audio Odigos, tourists will now enjoy a more enriching experience and take back historical insights of the Indian culture and heritage. The Audio Odigos app contains an inbuilt map of the site for a smooth navigation during the tour. Listeners will be offered various versions of history like Synopsis, Detailed History and Podcasts. The audio can be chosen in their preferred language & version of the history. Audio Odigos is now available for download on all Android and iOS supported mobile phones.

DG, Tourism Smt. Meenakshi Sharma briefed the media that Audio Guide facility Audio Odigos can be used in 12 sites that includes Amer Fort, Rajasthan, Chandni Chowk, Red Fort, Purana Quila, Humayun's tomb, Delhi, Fatehpur Sikri, Taj Mahal, Uttar Pradesh, Somnath and Dholavira, Gujarat, Khajuraho, Madhya Pradesh, Mahabalipuram, Tamil Nadu and Mahabodhi Temple, Bihar. She also said that this app is the outcome of the MoU signed with Resbird Technologies last year under which they have developed the audio guide app as a part of their CSR.

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

15.1. Indian Railways to get its first waste-to-energy conversion unit

IBEF: October 01, 2019

The East Coast Railway (ECoR) plans to set 'Waste to Energy Plant' at the Carriage Repair Workshop at Mancheswar area.

According to the statement released by ECoR,foundation stone of the plant was laid by the general manager of ECoR Vidya Bhushan on Monday.

There is huge amount of non-ferrous scrap being generated in the Carriage Repair Workshop in Bhubaneswar which does not have any efficient method of disposal. This leads to environmental problem as these wastes find way to landfills.

Thus, Carriage Repair Workshop Mancheswar has found a method for tackling this problem in a patented technology called 'POLYCRACK'.

"It is world's first patented heterogeneous catalytic process which converts multiple feedstocks into hydrocarbon liquid fuels, gas, carbon and water," the release said.

Polycrack Plant can be fed with all types of plastic, petroleum sludge, unsegregated MSW with moisture up to 50 per cent, ewaste, automobile fluff, organic waste including bamboos, garden waste and Jathropa fruit and palm bunch.

Pre-segregation of the waste is not required to reform the waste which is advantage of this method from the conventional approach. Waste as collected can be directly fed into Polycrack.

There is high tolerance to moisture therefore drying of waste is not required and waste is processed and reformed within 24 hours. It is an enclosed unit hence the working environment is dust free.

All the constituents are converted into valuable energy thus making it zero discharge process. The gas generated in the process is also reused to provide energy to the system thereby making it self-reliant of its energy requirement and also bring down the operating cost.

There is no atmospheric emission during the process unlike other conventional methods except for combustion gases which have pollutants less than the prescribed norms the world over. It operates around 450 degrees, making it a low temperature process when compared with other options.

Vidya Bhushan, General Manager, East Coast Railway said, "A Polycracker Plant of 500kg per day capacity at Mancheswar Workshop will process every type of waste material except metal and glass to produce Low Speed Diesel, organic carbon for industry and bio-gas. There will be no residue."

He added, "The initial operating cost will be approximately Rs 9 per day. The plant will consume the generated diesel oil and biogas to meet its energy inputs. Such a plant of 5kg per day is working at New Motibagh Colony, New Delhi and Infosys, Bengaluru. However, many such plants are working abroad. The plant is slated to be commissioned on January 10, 2020."

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

15.2. Udaan soars higher, raises $585 million in fresh funds

Livemint, 03 Oct. 2019, Varsha Bansal

The Series D round saw investments from both new and existing investors
Online B2B marketplaces have caught investors’ fancy as small and midsize businesses are increasingly turning to the internet to interact with a wide range of suppliers

Bengaluru: Udaan, the fastest Indian startup to achieve unicorn status, has raised $585 million in its latest round of funding, valuing the online business-to-business marketplace at $2.5-3 billion.

The Series D round saw investments from Tencent, Altimeter Capital, Footpath Ventures, Hillhouse, GGV Capital and Citi Ventures, the firm said on Wednesday. Existing investors Lightspeed Venture Partners and DST Global also invested in the round.

Online B2B marketplaces have caught investors’ fancy as small and midsize businesses are increasingly turning to the internet to interact with a wide range of suppliers, allowing for better price discovery and lowering their purchasing expenses.

“Udaan’s unique approach can enhance the capabilities of millions of kirana stores across India," Martin Lau, president of Tencent said in the statement. “Udaan represents a powerful example of how technology can empower the business of small merchants, improve the efficiency of industries and bring benefits to consumers."

Udaan became the fastest Indian startup to achieve a valuation of more than a billion dollars, when it raised $225 million from DST Global and Lightspeed last year.

The B2B marketplace plans to use the newly raised funds to deepen its presence across India and add new product categories.

“We plan to get deeper into the food category this year and also explore adding other categories such as electricals, industrial equipment," Vaibhav Gupta, co-founder of Udaan, said in an interview.

Udaan facilitates the purchase and sale of fashion products, groceries and electronics among manufacturers, brands and retailers. It was incorporated in June 2016 and launched later that year. Since then, the company has expanded its operations to 900 cities. It was founded by former Flipkart executives Amod Malviya, Sujeet Kumar and Gupta.

Udaan has been in funding talks with several investors over the past few months, including Japan’s SoftBank and New York-based hedge fund Tiger Global Management, but nothing materialized.

“Empowering tens of millions of small businesses to more effectively procure and sell goods is not only a massive business opportunity, but will help transform the economy by providing internet-scale productivity gains to merchants, wholesalers, and manufacturers," Brad Gerstner, founder and CEO of Altimeter Capital, said in the statement.

The last few months have seen strong investor interest in B2B e-commerce firms. This includes agritech company NinjaCart, which saw an investment of $89.5 million from Tiger Global. NinjaCart connects farmers to retailers such as grocery stores, supermarkets and restaurants that buy fruits and vegetables. Moglix, a B2B marketplace for industrial goods, raised $60 million from Tiger Global and Sequoia Capital.

While most firms in this space are vertical players, which means they focus on one specific category—say, fresh produce, industrial goods, or staples—Udaan is a horizontal player, offering products across categories.

The company also offers other services such as credit financing and logistics to connect manufacturers with retailers.

Udaan’s logistics service, Udaan Express, delivers 65% of the company’s orders.

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

16.1. Govt plans to set up body to regulate medical devices sector

IBEF, Sep. 26, 2019

The Bureau of Indian Standards (BIS) will still frame guidelines but these would be regulated by MDA. The arrangement would be on the lines of food items, where BIS designs the standards, but these are enforced by the Food Safety and Standards Authority of India. For, BIS itself doesn’t have implementing powers, said a senior government official who is working on the proposed MDA.

He said the body would comprise representatives from the industry, policy makers and active medical practitioners. It will get its role, powers and objectives from a Medical Devices Act, whose provisions are being framed.

“Government agencies, along with BIS, are formulating the Act. The draft has been made and BIS has already made 1,325 standards for more than 1,000 product lines,” added the official. NITI Aayog is also involved in the process.

The plan is to stop using norms borrowed from the American regulator, the Food and Drugs Administration (FDA), for procurement by state and central governments once MDA is put in place.

Currently, medical devices are the responsibility of the central drug regulator but are treated akin to.

As many as 22 medical devices have been categorised as drugs and are the only ones that are regulated. The rest are sold in the market without any particular standards governing these. Imported medical devices are given approval in India if they have US FDA approval or from the European Union.

Medical device makers say they are not very comfortable with the idea of BIS framing a law. They feel CDSCO should be doing it.

Meanwhile, the government is also working on rules for rationalising the trade margins for medical devices that have been categorised as drugs. This includes intraocular lenses. The government has already capped the prices of cardiac stents and orthopaedic knee implants. NITI Aayog and the department of pharmaceuticals are together working on a formula to cap the prices of other medical devices that are considered drugs.

Devices not characterised as drugs cannot be brought under price caps by the NPPA, using the Drug Price Control Order.

Remedy for sector

The proposed body will be separate from the Central Drugs Control Standard Organisation

It would have representatives from the industry, policy makers and active medical practitioners

The plan is to stop using norms borrowed from the American regulator, the Food and Drugs Administration

The government is also working on rules for rationalising the trade margins for medical devices that have been categorised as drugs

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

16.2. Govt employing multi-sectoral, community led approach to eliminate TB by 2025: Vardhan

IBEF, Sep. 26, 2019

The government is building a national movement through a multi-sectoral and community-led approach to eliminate tuberculosis by 2025, five years ahead of the global target, Union Health Minister Harsh Vardhan said on Wednesday.

The Centre has also increased allocation of funds for the TB programme by four-folds, he said after releasing the 'India TB Report 2019'.

Vardhan also launched the 'TB Harega Desh Jeetega Campaign', along with the National TB Prevalence Survey and said multi-stakeholder and community participation will form the pivot of the countrywide campaign.

"As part of our commitment to end tuberculosis, we have established patient forums in over 95 per cent of the districts in the first 100 days (of the second Narendra Modi government), which clearly shows our strong commitment towards ending TB in the shortest time.

"These district forums will bring the voices of the affected to the fore and highlight on-ground challenges faced by patients and their families in accessing tuberculosis care services," Vardhan said.

The Union health minister got emotional during his address as he recalled how his brother-in-law died because of multi-drug-resistant TB (MDR-TB) following prolonged illness. Vardhan was then Delhi's health minister.

"Even though he was admitted to a top Delhi government hospital, and despite I being the (Delhi) health minister, we could not save him. So, we have to build a national movement to eliminate the disease," Vardhan said.

According to the 'India TB Report 2019', as many as 21.5 lakh TB cases were notified to the Revised National Tuberculosis Control Programme (RNTCP) in 2018, a 16 per cent increase over 2017 and the highest so far.

Moreover, notifications from private sector health care providers reached 5.4 lakh, an increase of 40 per cent, contributing to 25 per cent of all TB notifications, it said.

"By employing a multi-sectoral and community-led approach, we are building a national movement to eliminate TB by 2025. Accordingly, we have increased allocation towards the TB programme by four-folds and are confident of achieving our target," Vardhan said.

Under the National Strategic Plan for ending TB (NSP 2017-25), the RNTCP is strengthening private sector engagement in order to reach out to more TB patients and improve access to tuberculosis care through the patient provider support agency (PPSA) and provision of incentives to doctors for notifying TB patients and treatment outcomes.

"As a result of these initiatives, of the total notifications, 25 per cent (5.4 lakh) cases were from the private sector. This PPSA model has now been scaled up to 48 cities throughout the country," Vardhan said.

Besides, 79 per cent of patients notified for TB in 2017, from both the public and private sectors, have successfully completed their treatment, while 49,733 cases were detected due to the efforts of the active case finding campaign, for which 14.4 crore vulnerable people were screened.

The Union health minister flagged off a van for the nationwide National TB Prevalence Survey. Twenty-five such vans will be part of the survey, which shall take six months to complete.

The survey will gather national and state-level data, which will be used as a policy tool for further interventions.

Vardhan also announced a partnership with the World Bank which is providing a USD 400 million credit for accelerating TB response in nine states through private sector engagement and other critical interventions.

He also awarded states which preformed excellently in tackling tuberculosis.

Among the states with a population of over 50 lakhs, Himachal Pradesh and Gujarat were awarded for being best performers. Among medium population states, Tripura and Sikkim were recognized for their efforts. Puducherry, and Daman and Diu were judged as the best performers among Union Territories.

The Central TB Division, which manages the RNTCP, launched an 'accelerator to national strategic plan' at the event to improve and expand the reach of TB care services by 2022. The division is a nodal department at the health ministry.

The plan aims to initiate preventive and promotive approaches and proposes potentially transformative interventions such as engagement with private sector health care providers, inter-ministerial partnerships, corporate sector engagement, latent TB infection management and community engagement.

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

17.1.1. Infosys opens 6th innovation centre in US, to hire 1000 workers by 2023

IBEF, Sep. 19, 2019

Infosys has opened a technology and innovation centre in Arizona, making it the sixth such centre in the United States (US). The new centre will focus on autonomous technologies, Internet of Things (IoT), full-stack engineering, data science and cyber security.

"We plan to hire 1,000 American workers in the state by 2023. As announced earlier, we have already surpassed the target of hiring 10,000 American workers as part of our ongoing efforts to accelerate the pace of innovation for American enterprises," Infosys said in a statement.

In May 2017, Infosys had announced it would hire 10,000 locals as part of its localisation efforts apart from setting up technology and innovation centers in this key client geography. The second largest IT services firm has already opened innovation centres in Indianapolis (Indiana), Raleigh (North Carolina), Hartford (Connecticut) and Providence among others.

"The inauguration of our Arizona Center is an important milestone in our efforts to help American enterprises accelerate their digital transformations," said Salil Parekh, Chief Executive Officer at Infosys. "We are excited to have completed our commitment to hire 10,000 American workers and we look forward to leveraging and empowering this specialized workforce to bridge the technology skills gap in the market and accelerate the digital agenda of our clients."

The IT firm also said hiring for around 500 staffers was underway at the new Arizona centre. On Saturday, it also announced its partnership with 'InStride' as part of its efforts to develop workforce in STEM (science, technology, engineering and mathematics) skill sets.

With increasing restriction on visa regulations, Indian IT services firms have been building up an employee pyramid in the US in recent years. As part of this localisation efforts, while most companies are building up new delivery centres, these firms are also collaborating with American universities to train fresh graduates with necessary IT skills.

For Infosys, US contributes more than 60 per cent of revenues. The company is ramping up its localisation efforts to reduce its dependence on subcontractors. In the last quarter, subcontracting cost for the IT firm stood at 7.5 per cent of the company's total delivery cost.

As part of its localisation drive, the company plans to continue hiring locals in the coming quarters.

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

17.1.2. Infosys revisits global delivery model to lower dependence on H1B visas

IBEF, Sep. 23, 2019

Infosys, the country’s second-largest information technology services firm, is tweaking its global delivery model.

It is slowly building up a higher execution capability in on-site locations, especially in America. As part of this, the Bengaluru-headquartered entity is following a 70:15:15 global delivery model, as compared to the traditional 70:30 one, in which 70 per cent of delivery works used to be done from offshore locations, mostly India, while the remaining 30 per cent were executed from on-site or client locations.

Sources in the know said the IT firm revealed this new strategy recently in Arizona, US, where the company opened its sixth technology and innovation centre as part of a localisation drive. Under the new approach, while 70 per cent of the work will continue to be from offshore locations, 15 per cent will be done by the on-site workforce who are locals and the remaining 15 per cent by deploying resources to co-work with clients at their premises in on-shore locations.

Sector experts said this would not only reduce Infosys' dependence on the H1B visa, which has seen increased restrictions under the current US administration. It will also help the company in building an employee pyramid for its future operations. "More local staffers mean Infosys can now participate in those outsourcing contracts where the work has to be done completely in the US, without any offshore component. It will also enable Infosys to reduce the sub-contracting cost by executing projects through local hires," an outsourcing advisor said.

In the quarter ended June, sub-contracting cost was 7.5 per cent of total delivery cost. North America as a region contributed 61.6 per cent of total revenue.

Before opening the Arizone centre, Infosys had also opened innovation centres at Indianapolis (Indiana), Raleigh (North Carolina), Hartford (Connecticut) and Providence (Rhode Island) in the US. It has completed the hiring of 10,000 locals and plans to add another 1,000 American workers by 2023.

"Clients are happy that we.can work both sides, that we can work without constraints. And, given the centres we have built, we can now work anywhere, based on what clients want specifically from the project," Salil Parekh, chief executive, recently told Business Standard.

However, tweaking of the delivery structure with more local hiring in client geographies is seen as margin-dilutive for now. "Hiring of more locals may impact margin in the short term. But, building up delivery capabilities in the US protects the firm against change in visa regulations in the medium term," an industry analyst said.

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

17.2. Reliance Jio adds 8.5 million subscribers in July; Airtel gains 2.5 million users

IBEF, Sep. 19, 2019

Reliance Jio added 8.5 million subscribers in July, after almost three months of slow addition, even as the older incumbents lost a cumulative six million, according to data from the Telecom Regulatory Authority of India (Trai).

Bharti Airtel reported 2.5 million subscribers exiting its network. Vodafone Idea had 3.4 million exits. Jio's highest reported monthly addition this year has been 9.4 million in March.

Both Jio and Airtel have inched up their broadband market share, to 56.2 per cent and 20.5 per cent, respectively. The active subscriber base reported by Trai has reduced to 83.2 per cent, compared to 84.4 per cent in June. Airtel continues to lead there.

Reliance Jio adds 8.5 million subscribers in July; Airtel gains 2.5 million users

The top five wired broadband service providers were BSNL (9.05 million), Bharti Airtel (2.4 million), Atria Convergence Technologies (1.47 million), Hathway Cable & Datacom (0.85 million) and You Broadband (0.75 million). The wired broadband base is expected to undergo some change as Jio starts offering commercial fibre services; Airtel has also launched competitive plans. The top wireless broadband operators are Jio (339.8 million subscribers), Airtel (121.5 million) and Vodafone Idea (110.9 million).

The number of telephone subscribers in India increased from 1,186.63 million at the end of June to 1,189.28 million at the end of July, up 0.2 per cent. Urban subscription increased from 675.58 million to 678.02 million; rural subscription from 511.05 million to 511.25 million.

Tele density increased from 90.11 at the end of June to 90.23. The urban figure rose from 160.78 to 161.12; rural tele density slightly declined from 56.99 to 56.98.

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

18.1. Apollo Hospitals in pact with US firm to launch healthcare drones

IBEF: September 20, 2019

To launch Drone healthcare delivery solution, which will explore leverage drone technology to deliver emergency aids and organs, Apollo Hospitals Group has tied up with US-based Zipline, said by Dr. Sangita Reddy, Joint Managing Director.

Concept of launching healthcare drone was introduced by the Apollo Hospitals and Zipline at an international conference which was organised in Hyderabad, where the state secretary of Telangana for industries, Mr. Jayesh Ranjan, Dr. Sangita Reddy and top executives of Zipline were present at the event. The idea of using drone in medical care has been under planning phase for the last couple of years.

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

18.2. Biocon to set up R&D facility in India to boost biosimilars development

IBEF, Sep. 25, 2019

In a bid to expand its research base, India’s largest biopharmaceutical company Biocon has acquired some assets from Pfizer Healthcare to set up its second R&D plant in India.

The assets have been acquired by Biocon Biologics, a subsidiary of the Bengaluru-based company, for an undisclosed amount to set up a 60,000 square feet state-of-the-art R&D facility in Chennai.

“The high-end integrated R&D facility in Chennai will enable Biocon Biologics to expand its R&D capability and accelerate its journey towards meeting its strategic long-term goal of addressing the needs of millions of patients worldwide,” said Christiane Hamacher, CEO, Biocon Biologics. The centre will be operational in a few months.

Currently, Biocon has a 200,000 square feet R&D centre at Bengaluru which has a product pipeline of 28 molecules, including 11 with Mylan, few with Sandoz and rest on its own.

This investment will allow the company to fast-forward development of its biosimilars from bench to pilot scale, said a company spokesperson.

“R&D is at the core of what we do, and I believe this facility will enable us to pursue breakthrough innovation in pursuit of providing affordable access to high quality biosimilars and inclusive healthcare solutions aimed at transforming patient lives globally,” said Hamacher.

According to a McKinsey report, the biosimilars market is expected to be pegged at US$ 15 billion by 2020.

“Biosimilars offer attractive prospects for Indian players, especially in the US and EU markets, and this investment will help Biocon capiltalise such an opportunity,” said Gaurav Jain, vice-president, ICRA.

Biocon chose the strategy of acquiring the R&D assets to set up its facility over a greenfield project to accelerate the global development of its biosimilars portfolio, explained the spokesperson.

Once operational, the facility is expected to house over 250 scientists who will have access to the R&D labs equipped with over 500 high-end process and analytical instrumentation.

The company’s biologics business had registered a growth of the 96 per cent at Rs 490 crore in the quarter ended June, led by the expansion of geographical footprint and increased penetration of products in key developed and emerging markets.

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

19.1. Adani Group, Reliance Industries to lock horns for India's data centres

IBEF, Sep. 16, 2019

Adani Group and Reliance Industries (RIL) seldom find themselves as competitors to each other. India's data centre market would prove to be one, where both might be chasing the same set of clients, though for different reasons.

At RIL's annual general meeting last month, Mukesh Ambani, chairman and managing director, announced a partnership with Microsoft to launch data centres across India. In January, the Adani Group committed to developing data centres in Andhra Pradesh, with Rs 70,000 crore of investments in digital and energy infrastructure.

So far, Adani has made initial moves in businesses like petrochemicals, natural gas and petroleum retailing where RIL is an established player. Data centres would be a new segment for both.

Experts say the duo's ambition for data centres is fuelled by different reasons. "RIL wants to be a large and leading digital-telco player in India, which is going to involve a lot of vertical and horizontal integration. Data centres is part of this integration, which he (Ambani) now looks to offer to third parties in order to achieve benefits of scale. This is akin to warehouse; initially captive and now third party," said Nitin Bhasin, head of research for Ambit Capital.

He said, "The Adanis might be looking at it from an infrastructure or purely real estate play, not as services or a digital game. Both are definitely chasing Amazon and Google but are approaching with different mindsets."

Adani Group, Reliance Industries to lock horns for India's data centres

There is a government push in India for digitising of business and services, with multiple states also looking to set up data centres. There is also a need for greater data localisation to protect citizen’s digital assets. Some say this state policy opportunity is what sets Adani and RIL apart.

Naresh Golani, group head (corporate ratings-large corporate) of CARE Ratings, said: "Adani Group typically builds its business around government policies, looking at past performance. While RIL's retail business presence may overlap if they had to cater to e-retail giants like Amazon, Adani’s independent existence (no retail presence) is an advantage."

The government push and the need for data localisation have also turned the data centre market into an extremely attractive one. Public cloud services revenue in India is projected at US$ 2.4 billion in 2019, an increase of 24.3 per cent from 2018, according to Gartner.

According to Golani, this market will grow at 20 per cent annually for the next few years.

He sees enough potential for two giants to co-exist. "The growth potential is significant and there is enough scope for everyone," he added.

Availability of capital might prove an advantage for both Adani and RIL's Jio. "New entrants will face multiple challenges like a capex-intensive sector with long-term return on investment and limited experience of profitably running data centre operations," said Naveen Mishra, senior director and analyst at Gartner.

"Barriers to entry are high, given the existing 12-18 players in India, who are also adding capacity, as well as the ability to gather various government approvals."

Others are hopeful the entry of two big conglomerates will further organise the segment.

"They might land up competing, but the opportunity is large, and this could be healthy competition. Two big players in the sector will organise the segment, which is very fragmented right now. This could help attract international investors looking to invest in infrastructure yield assets," Bhasin added.

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

19.2. In a boost to research in India, two more supercomputers to be functional soon

Livemint, 13 Sep 2019, Srishti Choudhary

A total of six supercomputers are to be installed in the first phase of the National Supercomputing Mission, of which three have been installed
These high-performance machines can crunch the most complex of data at a speed which is millions of times faster than a desktop PC

NEW DELHI: Two more supercomputers, set to be functional in the coming days, will power India’s research and development projects, as the first phase of the country’s National Supercomputing Mission gets underway.

The supercomputers, being installed at the Indian Institute of Technology (IIT), Kharagpur, and the Indian Institute of Science Education and Research (IISER) in Pune, are expected to be functional within the next few days.

“We may have missed the bus in micro-electronics, but our core strength lies in design and integration. These computers are all indigenously designed as part of ‘Make in India’. They are not only going to power our research in various domains, but would address several national security concerns," said Ashutosh Sharma, secretary, department of science and technology.

A total of six supercomputers are to be installed in the first phase of the National Supercomputing Mission, of which three have been installed, and rest will be installed at IIT Kanpur, IIT Hyderabad, and Jawaharlal Nehru Institute of Advanced Studies (JNIAS) by December.

The first one--Param-Shivay--equipped with a peak computing power of 837 Teraflops was set up in IIT Varanasi in February. The second phase of the mission that begins next year would witness installation of ten more such high performing computers.

The ₹4,500 crore supercomputing mission is being jointly implemented by DST and the ministry of electronics and information technology and led by C-DAC and Indian Institute of Science (IISc), Bengaluru. The target is to set up over 60 high performance computers in the country by 2022.

Unlike other computers, these high-performance machines can crunch the most complex of data at a speed which is millions of times faster than a desktop PC. Their capabilities are measured in Floating Point Operations Per Second (FLOPS), unlike other modern computers which are measured in Million Instructions Per Second (MIPS).

“They would help improve weather services, disaster management, ensure faster processing of data, support computational biology, flood control and aid research in various disciplines. As many as 3,000 people have already been trained to use them and it includes people from across disciplines, including Chemistry, Physics, Biology, computer programming," said Milind Kulkarni, a senior scientist at DST.

“So wherever they have been installed, they would be connected to all other institutions through the National Knowledge Network. So, if your university is part of the network, then anyone sitting on a desktop can make use of it, by seeking time to do the related high computing work," said Kulkarni.

Of the total ₹2,800 crore, DST has so far received ₹409 crores under the mission. About ₹1,700 crore has been allocated to the ministry of electronics and information technology.

20.1. For Bollywood, 2019 is a blockbuster year

Livemint, 03 Oct. 2019, Lata Jha

Bollywood movies notch up ₹3,700 crore in first three quarters of 2019
Bollywood had managed to trump the 2008 recession as well, registering 7.69% revenue growth over the past year

New Delhi: India’s Hindi movie industry has notched up box-office revenue of ₹3,700-3,800 crore in the first three quarters of 2019, seemingly unaffected by the slowdown that has hit other parts of the economy.

This is a huge increase from the ₹3,000 crore generated in the first three quarters of 2018, according to film trade and exhibition expert Girish Johar.

Thirteen films have crossed the ₹100-crore mark at the box office so far in 2019 compared with the 10 that made the cut in the year earlier.

At this rate, Bollywood’s box-office collections are expected to be at least 20% more than the previous year.

With domestic box-office collections of ₹276.34 crore, controversial romantic drama Kabir Singh is the highest grosser so far, followed by war film Uri: The Surgical Strike ( ₹244 crore), Salman Khan’s Bharat ( ₹197.34 crore), Akshay Kumar’s Mission Mangal ( ₹192.73 crore), and ensemble comedy Total Dhamaal ( ₹150 crore). Besides, a bunch of smaller, content-driven offerings such as Gully Boy ( ₹134 crore), Chhichhore ( ₹139 crore), and Dream Girl ( ₹123 crore), also made it to the ₹100-crore club.

While the entertainment industry is thought to be recession-proof, more deterioration in consumer sentiment may result in people choosing to stream content at home rather than watch movies at a theatre, a relatively more expensive proposition.

“People are probably watching more movies to escape the challenges of an economic slowdown. Plus, it’s not just about big stars and their occasional outings anymore. Small-budget films too are doing better than expected now," said Devang Sampat, director, India Strategic Initiatives, Cinépolis India.

Each quarter is now throwing up several festive holiday weekends and opportunities to capitalize on them, Sampat added. The Indian audience is now receptive to occasions such as Republic Day, Valentine’s Day, Independence Day, and Christmas, unlike the traditional Eid and Diwali dates previously.

To be sure, the movie business is bringing great returns globally as well. Walt Disney alone made $2.79 billion this summer, which outshines its $2.713 billion gross in 2018, according to a Forbes report. Sony Pictures Entertainment Inc. too pulled in $704.4 million, a huge jump from 2018’s $402.6 million earnings.

Interestingly, Bollywood had managed to trump the recession of 2008 as well, registering a 7.69% growth in revenue over the past year, total gross earnings of ₹1,608.05 crore and blockbusters like Ghajini ( ₹114 crore) and Rab Ne Bana Di Jodi ( ₹84.68 crore), according to data from trade website Box Office India.

The best has truly been reserved for the last, said Atul Mohan, editor of trade magazine Complete Cinema. The final quarter of 2019 will see nearly eight big-ticket releases and a host of smaller films vying for the attention of audiences in theatres with a combined ₹1,000 crore riding on them. These will try and capitalize on the three big festivals of Dussehra, Diwali and Christmas.

Action drama War, produced by Yash Raj Films and starring Hrithik Roshan and Tiger Shroff, which was released on Wednesday, will be followed by director Shonali Bose’s The Sky Is Pink featuring Priyanka Chopra, Farhan Akhtar, and Zaira Wasim later in October. The big Diwali weekend will see no less than three releases—Rajkummar Rao and Mouni Roy’s comedy Made In China, Taapsee Pannu and Bhumi Pednekar’s sports drama Saand Ki Aankh, and ensemble comedy Housefull 4 starring Akshay Kumar, Riteish Deshmukh, Bobby Deol, Kriti Sanon, Pooja Hegde, and Kriti Kharbanda.

November will bring action drama Marjaavaan starring Sidharth Malhotra, Riteish Deshmukh, and Tara Sutaria, satirical black comedy Bala featuring Ayushmann Khurrana and Bhumi Pednekar, Dil Bechara, a Hindi adaptation of the popular film and novel, The Fault in Our Stars, starring Sushant Singh Rajput, and Jawaani Jaaneman with Saif Ali Khan and Tabu in the lead roles.

December will see the release of Ashutosh Gowariker’s period drama Panipat starring Arjun Kapoor, Sanjay Dutt and Kriti Sanon, romantic comedy Pati, Patni Aur Woh, a remake of the 1978 film with the same name, starring Kartik Aaryan, Bhumi Pednekar, and Ananya Panday, and Rani Mukerji-starrer Mardaani 2.

The year will end with Salman Khan’s Dabangg 3 for the Christmas weekend, and romantic comedy Good Newwz, starring Akshay Kumar, Diljit Dosanjh, Kareena Kapoor Khan, and Kiara Advani.

“The year has been fantastic so far, and the audiences have shown that you cannot take them for granted. We’re expecting 2019 to end with a bang. It has the potential to be one of the best years of all time," Johar said.

20.2. Patan’s girls got talent

Livemint, 13 Sep. 2019, Nevin Thomas

Girls from a school in northern Gujarat’s Sampra village are leading a football revolution
Called the ‘Patan Girls’, the footballers’ success has brought an entire community closer

Heat. Camels tied to small trees. Bare-chested men sleeping next to brown bushes. Barren roads and mirages. Squinting eyes and migraines.

Nothing typifies this part of northern Gujarat better than the scorching heat that engulfs the region for most of the year. It is relentless and unforgiving.

Yet 14-year-old Janki Thakor is unfazed. Her big toe is bandaged with a piece of cloth to protect a blister. Neither she nor the other 20-odd girls—all former or current students of the Mahadevpura Primary School in the village of Sampra—who are chasing a worn-out ball on the burning ground have anything on their mind other than football.

They are all members of the “Patan Girls"—a group of talented footballers who have taken the sport by storm in Gujarat. They have been part of Patan teams that are currently champions in all three categories in the inter-district football championships (sub-junior, junior and senior) and were an integral part of the Gujarat Under-16 and Under-14 sides that reached the semi-finals of this year’s National Championships.

Opening play

“These girls are so physically fit because they work on their farms throughout the day. They are willing to play all day long as we give them the football," explains Rangatji Thakor, the schoolteacher responsible for Patan’s rise as a football nursery.

It all started in 2010, when Rangatji learnt that the sport would be part of the inaugural edition of the Khel Mahakumbh—a sports festival started by then Gujarat chief minister Narendra Modi.

“I had a football that was given to me by a member of the Gujarat Police. I gave that ball to the kids and they learnt the sport on their own. We won the district-level competition that year itself and then went on to take part in the Khel Mahakumbh with no proper kit or shoes. We didn’t win but the officials who saw us play asked me to keep supporting these girls and that’s how football in Sampra began," says Rangatji.

The girls didn’t take much time to grow into the game. In the 2013-14 edition of the Khel Mahakumbh, teams from Patan won the Under-13 and Under-17 categories while finishing third in the open category.

More girls from the village, which has a population of around 7,000, began taking up the sport as Rangatji and his colleague Virambhai Thakor began a daily training schedule from 5-7pm. The rapid rise in the number of footballers meant that the ground in front of the primary school was no longer enough. Rangatji identified a piece of land adjacent to the school, with overgrown cacti and bushes. He used his own money to level the surface into a playing ground.

“It is not the perfect ground though. The shrubs and plants in the area mean our balls keep getting punctured. But these girls know how to stitch a puncture also now," he says with a smile.

Talented and homesick

“This year, we organized three girls championships in the state and all three were won by the Patan girls," says Gulab Chauhan, secretary of the Gujarat State Football Association (GSFA), at his office at TransStadia, the plush-looking multipurpose stadium in Ahmedabad. He was busy with the preparations for the final of the Intercontinental Cup—a four-nation football tournament that was held at TransStadia from 7-19 July. The tournament—involving the men’s teams of India, North Korea, Tajikistan and Syria—witnessed a healthy turnout, with Gujarat defying the popular perception that it was a cricket-only state.

“It has been a great year for football in the state. Our girls reached the semi-finals in two categories of the National Championships—a first for Gujarat. And with the success of the Intercontinental Cup, the whole country knows our football is growing," he says.

Sampra has been at the forefront of this mini football revolution. Given its success, the GSFA shifted 21 of Sampra’s talented players to the Sports Authority of Gujarat (SAG) facilities for girls in Himatnagar, started in 2017.But the girls found it difficult to adjust and slowly started dropping out to return to their village.

“These are girls whose parents are farmers. Yes, there is a good school and top facilities available at Himatnagar but they were always wondering who will be there to help their parents. So they finally went back," explains Chauhan.

Shilpa Thakor, a player who had moved to the SAG campus, says: “We want to live closer to our families. The facilities in Himatnagar were very good but we want something like that in Patan so that all of us can play football together."

According to Chauhan, the GSFA has plans for a football academy in Patan district, but both Rangatji and his fellow coach Virambhai would rather get a qualified coach.

“Neither of us are trained coaches. Whatever little we know is through watching TV. The senior girls who go to these camps come back to the academy and then teach the younger ones. They take care of themselves. Both of us just stand and watch every evening. But it would be great if they (the GSFA) can arrange for a qualified coach in the region. That will definitely improve the standards," says Virambhai.

Binding a community

“When I joined as a teacher here in 2005, there were only 17 students in class VII. There were very few girls and they were never encouraged to study further. But ever since Rangatji introduced football in the school, the number of students has steadily increased," says Paradhiya Varshaben, a social sciences teacher at the Mahadevpura school.

A training session at the Mahadevpura school ground. Photo: Virambhai Thakor

“Now the conditions for girls have changed and at the school we have more girls than boys. Earlier, the girl students were reluctant to even join class VIII but due to football, they are going to colleges too," she adds proudly.

The community has played a key role in harnessing the girls’ talent, with parents from a conservative society supporting their children’s development. This has to do with the trust everyone has in Rangatji, who also hails from the village.

“I moved to Mahadevpura in 2006. I remember how Rangatji used to give cricket training to children back then. Everyone here loves and trusts him. That is why parents have had no problems sending their girl children with him to play football. We know he is like a parent and a teacher to them," says Dasharthji Thakor, Rangatji’s elder brother. His daughter studied till class VII in the Mahadevpura school and was an active part of the football team.

Football has changed Sampra. The success of the girls has united the village and made it aware of the potential of the game. “We are what we are because of the girls," say the villagers, starting with the school’s teachers. According to them, Patan’s Patola (double Ikat woven silk saris) and the mighty Rani ki Vav stepwell have taken a back seat to their footballers. “We have not even seen an aerodrome in our lives but our girls got an opportunity to fly from Ahmedabad to Mumbai in a flight. For our village, that is a big deal," adds Dasharthji, who also teaches at the school.

Mahadevpura’s footballing tale is an example of how community-driven sports initiatives are key in a country that is so culturally diverse. Local leaders such as Rangatji, who understand the demography, continue to play a huge role in identifying and nurturing talent—be it for a Hima Das in Assam or a Mariyappan Thangavelu in Tamil Nadu.

But the girls’ stint at the Himatnagar SAG academy and their unwillingness to be away from their families is also indicative of the fact that building academies isn’t everything.

Thirty-five girls from the Mahadevpura school have, till date, been part of the state team in the National Championship in various age categories. Ten of them have represented the state seven times. Shilpa, a former student of the school, was a stand-by for the Indian national team.

So the talent is there. But the federation may have to go to the villages.

There are many things you notice as you make your way to Sampra. Dry, barren fields, patches of land with cacti. And the overwhelming feeling that the desert isn’t too far away.

And the heat. That dry, relentless heat.

But the village is no longer known for its heat. Their girls are their stars, and football has well and truly taken over.

Nevin Thomas is a sports journalist who also works closely with grass-roots football academies across the country.

INDIA AND THE WORLD

21.1. India to be a big focus post politics, says Trump Jr

Livemint, 14 Sep. 2019, Bidya Sapam

If I want to do deals in India and, if we hadn’t given up, we could do 20 deals this month itself, says Trump Jr
The Trump Organization entered India in 2013 and works with local developers via brand licensing agreements

Mumbai: The Trump Organization, which controls the Trump brand of luxury properties across the globe, will look at new branding and licencing deals in India—possibly even hotels—once US President Donald Trump demits office, his son has said.

“India is a market that we would be very interested post politics," Donald Trump Jr, the eldest son of the President, told Mint.

“We have voluntarily given up the ability to do new deals internationally while my father is in office. After politics, we would certainly look at India and other markets. But that (India) would be a big focus of mine. Frankly, it would be easier for me to get going in India because of the relationships we have built up in the last decade," Trump Jr, who has been at the helm of Trump Organization since his father took office in 2017, said in a telephone interview.

This week, Trump Organization’s Indian partner, Tribeca, flew around 100 Indian homebuyers to New York.

The initiative was a follow-up to a campaign conducted by Tribeca in February 2018, offering potential homebuyers of the new Trump Tower at Gurugram, near New Delhi, a chance to “have dinner" with Trump Jr, 41. Apartments at the upcoming 47-storey luxury tower cost between ₹5 crore and ₹10 crore.

New York-based Trump Organization has not signed any fresh deals in overseas markets, including India, in the last two years. However, it has continued to promote its ongoing projects across the world.

“While the (Indian real estate) market has suffered, we have done disproportionately well relative to other high-end projects. We have carved a unique niche for ourselves. Our sales continue to be strong. We continue to dominate despite a general slowdown," Trump Jr said.

India is among one of the largest markets for the Trump Organization outside the US. The company, which entered India in 2013, works with local developers through brand licensing agreements, but does not make any equity investments.

So far, it has signed partnerships with five realty companies —Lodha Developers Pvt. Ltd in Mumbai, Pune-based Panchshil Realty, M3M and Ireo in Gurugram, and Unimark Group in Kolkata.

It currently has three under-construction Trump Tower projects—one each in Gurugram, Kolkata and Mumbai. While the Mumbai and Kolkata projects are set to be delivered next year, the Gurugram complex will be completed by 2022.

Trump Jr said there was no dearth of potential deals in India and the Trump brand has not suffered from an ongoing US investigation into the company over potential tax evasion and fraud in its home country.

“If I want to do deals in India and, if we hadn’t given up, we could do 20 deals this month itself. But we chose not to do that because that would be the right thing to do," he added.

Trump Jr said the company will also look at expanding its hotel business in India. “We would definitely look at hospitality. Our hotel business is doing great and we look to expand that internationally. We don’t have a hotel in India. Our New York hotel continues to be great business for us and we would love to expand that business to India in time."

21.2. US-India JV eyes blueberry boom

Asiafruit, 25 Sep. 2019, John Hey

India’s INI Farms and US-based berry grower-marketer Munger Farms join forces to develop the blueberry category in India

INI Farms and Munger Farms opened a new chapter in their respective development earlier this month with the announcement of joint venture focused on building India’s burgeoning blueberry category through US imports as well as the development of domestic production.

Blueberries are a nascent category in India, but one displaying enormous growth potential, according to the partners. Consumption is increasing rapidly off a very small base, fuelled by awareness of blueberries’ health benefits as well as a growing propensity to global trends among India’s middle class.

One of the key hurdles to expanding blueberry consumption in India is the high cost and limited availability of fruit. Supply has been largely dependent on air-flown imports, and the lack of cold chain in India makes it difficult to deliver a consistent product to consumers.

INI Farms and Munger Farms are seeking to combine their respective strengths to tackle these challenges.

US-based Munger Farms, which describes itself as the world’s largest family-owned berry grower, farms over 3,000 acres (1,214ha) of blueberries across California, Oregon and Washington. It is one of four grower-owners of the Naturipe brand, together with Hortifrut, Naturipe Berry Growers (which primarily produces strawberries and raspberries in California and Mexico) and MBG marketing, a blueberry cooperative based in Michigan.

Munger Farms plans to bring world-class varieties, advanced production technologies and technical expertise to India in order to help develop local production and grow consumption.

“The Munger family actually originates from India,” president and CEO, Bob Hawk told Fruitnet. “The owners, David Munger and his brother Kable, are second-generation, so this is a great opportunity for us to come back home, if you will.”

INI Farms, which celebrated its tenth anniversary in August, has expanded rapidly with venture capital backing, establishing a leading position in production, packing and marketing of core categories, notably pomegranates, bananas and coconuts. The company now plans to utilise its network of direct relationships with farmers and its supply chain capabilities to grow, distribute and market blueberries together with Munger Farms.

Two-way trade

While noting that the big opportunity centres on developing domestic production in India, Hawk was swift to point out that this is a long-term project, adding that the companies will work on a number of other opportunities.

“With our partnership, we are able to look at the Indian market from many perspectives. One of them is learning what can be done to grow blueberries in India, and that’s a big project with a lot of work to do. There’s a saying that you’ll crawl before you walk, before you run. So we’re just getting ready to crawl.

“But while we get ready, we can also develop a trading operation with INI Farms, one that goes both ways.”

Importing fresh blueberries from Munger Farms’ US operations into India, as well from its counter-seasonal supply partners within the Naturipe group, will be an immediate focus. Munger Farms also supplies a range of value-added blueberry products, as well as nuts such as pistachios, almonds and hazelnuts.

“Our whole product range is made up of healthy products, and this is a great partnership to come into India and start to bring these products into the marketplace. The blueberry products can be anything from fresh blueberries to frozen berries, to dried berries, juices and jams.”

Munger’s strength as a marketing company within North America will also be utilised to help distribute Indian pomegranates, arils and juice from INI Farms in the US market, he added.

Building from the ground up

INI Farms’ chairman and managing director Pankaj Khandelwal said the partnership represents “a fantastic opportunity” to grow the blueberry category in India.

“Blueberries are available in India, but not at a level where they could be. And with partners like this, we obviously have the best quality and varieties in the world, so we will have the right product.”

Khandelwal recognises that significant investment will be required to develop the category, however. “We do believe blueberries will fit the palate of the Indian consumers. At the same time education is very important. It’s very much part of the marketing plan; to educate the consumer. This is why the relationship is so important.”

Whether it is imported or domestically grown product, the lack of cold chain in India also poses a significant challenge for blueberries, but Hawk said INI’s infrastructure and strategic approach is one of its key attractions as a partner.

“INI has a vertically integrated system, which is hard to find in India, particularly with regards to cold chain. They manage all points from the farm to the consumer internally, not externally.”

One of the immediate priorities for INI Farms is to build the supply chain to handle blueberries from point of receival or production to the consumer, said CEO Purnima Khandelwal. “We’ve been doing this with pomegranate arils for the domestic market, so we know how it works, but we’ll need to develop it further.”

Sumit Saran of agribusiness consultancy SS Associates introduced the two companies around two years ago, and he feels such partnerships will be the only way to succeed in today’s market.

“On the import side, there has been some trading of blueberries in India, but in my experience the world of trading is over. Now it’s time for relationships, for people to work together, and stand by each other in good times and bad,” he said.

High price points on imported blueberries, coupled with lack of consistency, currently constrain consumption, but Saran is hopeful the development of domestic production will fuel dramatic growth.

“If you were able to grow blueberries on the ground, even with the same production costs, you’re taking off the duty and the freight, which are substantial.”

But first, a significant amount of research and trial production will be required to determine the viable locations to grow blueberries.

“We’ve already made multiple visits to India, and we’ve seen multiple locations,” said Hawk. “We’ve been looking at soils, climate data, the timing of rainfall and so on. It’s a complex process. From our experience, we will select various varieties to bring in that we think we will work.”

Longer term, he said the ideal situation would be to have multiple growing locations close to India’s major cities. “That way, your fruit is fresher, your logistics costs are much lower, and you can really service the consumer.”

In addition to capitalising on the ‘local for local’ opportunity, Hawk said the partners plan to develop blueberry exports once they have become successful at growing in India. “There are many markets that would be receptive to the cost structures because of the logistics, especially the Middle East and South-East Asia,” he noted.

22.1. Dr. Harsh Vardhan launches WHO India Country Cooperation Strategy 2019-2023

IBEF, Oct. 10, 2019

"The country is passing through a phase of not only transition, but also immense productive transformation in the health sector". This was stated by Union Minister for Health & Family Welfare Dr Harsh Vardhan as he launched 'The WHO India Country Cooperation Strategy 2019–2023: A Time of Transition', here today. The Country Cooperation Strategy (CCS) provides a strategic roadmap for WHO to work with the Government of India towards achieving its health sector goals, in improving the health of its population and bringing in transformative changes in the health sector.

Speaking at the event, the Health Minister stated that the four areas identified for strategic cooperation of WHO with the country encompass: to accelerate progress on UHC; to promote health and wellness by addressing determinants of health; to protect the population better against health emergencies; and to enhance India’s global leadership in health. He added that under the vision and leadership of the Prime Minister Shri Narendra Modi ji, the country has seen phenomenal advances made in various aspects of the health sector. Dr Harsh Vardhan stressed on the need for health to be made a people’s movement where the positive health attitude is inculcated in everyone, andc everyone takes responsibility of their own health through preventive and promotive health approach. He mentioned about various social initiatives taken up such as Eat Right India movement, Fit India movement and Poshan Abhiyaan that have collectively engaged with the people and enhanced the awareness around these crucial health areas through people’s participation.

Dr. Harsh Vardhan added that besides the health priorities detailed in the strategy, focus needs to be given on other equally pertinent health areas of environmental and occupational health, accidents and road injuries, and good nutrition and food safety. Emphasizing the need of inter-ministerial collaboration for a healthy nation, Dr. Harsh Vardhan suggested that a mechanism needs to be institutionalized wherein every ministry has a health section/department, so that every policy factor in its health implications.

Ms. Preeti Sudan, Secretary (HFW) stated that India is conscious of the challenges that still exist. Given this, the document needs to have flexibility in order to factor in the changing health scenario in the country. She added that the CCS builds upon the work that WHO has been carrying out in the last several years. "In addition, it identifies current and emerging health needs and challenges such as non-communicable diseases, antimicrobial resistance and air pollution. We are fully committed to this collaborative strategy", she added.

Dr Henk Bekedam, WHO Representative to India said "The implementation of this CCS will build on the remarkable successes in public health that India has demonstrated to the world. It's a great opportunity to showcase India as a model to the world in initiatives such as digital health, access to quality medicines and medical products, comprehensive hepatitis control program and Ayushman Bharat. We are geared to step-up to leverage opportunities and address challenges to ensure maximum public health impact."

The India CCS is one of the first that fully aligns itself with the newly adopted WHO 13th General Programme of Work and its 'triple billion' targets, the Sustainable Development Goals (SDGs) and WHO South-East Asia Region's eight Flagship Priorities. It captures the work of the United Nations Sustainable Development Framework for 2018-2022. The CCS outlines how WHO can support the Ministry of Health & Family Welfare and other allied Ministries to drive impact at the country level. The strategy document builds on other key strategic policy documents including India's National Health Policy 2017, the many pathbreaking initiatives India has introduced - from Ayushman Bharat to its National Viral Hepatitis programme and promotion of digital health amongst others.

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

22.2. At 17.5 million, Indian diaspora remains largest in world

IBEF, Sep.19, 2019

India was the leading country of origin of international migrants in 2019 with a 17.5 million strong diaspora, according to new estimates released by the United Nations, which said the number of migrants globally reached an estimated 272 million.

The International Migrant Stock 2019, a dataset released by the Population Division of the UN Department of Economic and Social Affairs (DESA) today, provides the latest estimates of the number of international migrants by age, sex and origin for all countries and areas of the world.

The estimates are based on official national statistics on the foreign-born or the foreign population obtained from population censuses, population registers or nationally representative surveys.

The report said that the top 10 countries of origin account for one-third of all international migrants. In 2019, with 17.5 million persons living abroad, India was the leading country of origin of international migrants.

Migrants from Mexico constituted the second largest diaspora (11.8 million), followed by China (10.7 million), Russia (10.5 million), Syria (8.2 million), Bangladesh (7.8 million), Pakistan (6.3 million), Ukraine (5.9 million), the Philippines (5.4 million) and Afghanistan (5.1 million)

India hosted 5.1 million international migrants in 2019, less than the 5.2 million in 2015. International migrants as a share of total population in India was steady at 0.4 per cent from 2010 to 2019.

The country hosted 207,000 refugees, the report said adding that refugees as a share of international migrants in the country was four per cent.

Among the international migrants in the country, the female population was 48.8 per cent and the median age of international migrants was 47.1 years. In India, the highest number of international migrants came from Bangladesh, Pakistan and Nepal.

In 2019, regionally, Europe hosted the largest number of international migrants (82 million), followed by Northern America (59 million) and Northern Africa and Western Asia (49 million).

At the country level, about half of all international migrants reside in just 10 countries, with the United States of America hosting the largest number of international migrants (51 million), equal to about 19 per cent of the world's total.

Germany and Saudi Arabia host the second and third largest numbers of migrants (13 million each), followed by Russia (12 million), the United Kingdom (10 million), the United Arab Emirates (9 million), France, Canada and Australia (around 8 million each) and Italy (6 million).

The share of international migrants in total population varies considerably across geographic regions with the highest proportions recorded in Oceania (including Australia and New Zealand) (21.2 per cent) and Northern America (16.0 per cent) and the lowest in Latin America and the Caribbean (1.8 per cent), Central and Southern Asia (1.0 per cent) and Eastern and South-Eastern Asia (0.8 per cent).

Most international migrants in sub-Saharan Africa (89 per cent), Eastern and South-Eastern Asia (83 per cent), Latin America and the Caribbean (73 per cent), and Central and Southern Asia (63 per cent) originated from the region in which they reside.

By contrast, most of the international migrants that lived in Northern America (98 per cent), Oceania (88 per cent) and Northern Africa and Western Asia (59 per cent) were born outside their region of residence.

UN Under-Secretary-General for DESA Liu Zhenmin said that These data are critical for understanding the important role of migrants and migration in the development of both countries of origin and destination.

Facilitating orderly, safe, regular and responsible migration and mobility of people will contribute much to achieving the Sustainable Development Goals.

The report added that forced displacements across international borders continues to rise.

Between 2010 and 2017, the global number of refugees and asylum seekers increased by about 13 million, accounting for close to a quarter of the increase in the number of all international migrants.

Northern Africa and Western Asia hosted around 46 per cent of the global number of refugees and asylum seekers, followed by sub-Saharan Africa (21 per cent). Turning to the gender composition, women comprise slightly less than half of all international migrants in 2019.

The share of women and girls in the global number of international migrants fell slightly, from 49 per cent in 2000 to 48 per cent in 2019.The share of migrant women was highest in Northern America (52 per cent) and Europe (51 per cent), and lowest in sub-Saharan Africa (47 per cent) and Northern Africa and Western Asia (36 per cent).

In terms of age, one out of every seven international migrants are below the age of 20 years.

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

23.1. Cargill to invest US$ 160 million in the next three years in new businesses

IBEF, Oct. 09, 2019

Cargill, a global food and agriculture company plans to invest US$ 160 million in the next three years for fresh acquisitions, including brands, geographical and product-line expansions, two senior officials from the company said. It has promised US$ 240 million investment in the coming three years.

As this investment will be processed, the company's total investment in India will touch almost US$ 750 million that includes around US$ 500 million in various facilities across the country over the years.

"Discussions are on towards increasing farmers' income and productivity. We think that Cargill's various businesses from agricultural supply chain, food and animal nutrition could play a big role in the months to come," said Mr. Marcel Smits, chairman and chief executive officer, Asia Pacific, Cargill.

Cargill India President Mr. Simon George said, "Cargill has so far invested US$ 80 million of the promised US$ 240 million in India and the remaining will be done in the next 36 months in a host of initiatives." The so far amount of US$ 80 million has been invested in US$ 20 million in an aqua feed facility in Andhra Pradesh, US$ 20 million in a state-of-the-art silo to store corn in Davangere having a capacity of 60,000 tonnes. The company also plans to set up a feed meal plant in Kota of Rajasthan.

Cargill also has a commodities business in India, under which it has sourced almost 13 commodities from around 300,000 farmers in 2018-19, totalling 600,000 metric tonnes.

"In India, the government plays an important role in the agriculture sector, which is largely self-sufficient. Our commodities business is relatively smaller here compared to other parts of the world and largely domestic. However, all that is rapidly changing. Going forward, one would have to be well integrated with the global supply chains to stay globally competitive," Smits said.

The intervention by the government makes the business little less predictable for industries like commodities, when compared to other countries, but since the size of commodities business is small, it does not have much impact on their overall operations. According to the company, the policy interventions in duty structure do not impact them much as there is still level field for all.

The edible oil business of the company consists of both as a bulk importer and also a leading player in the branded edible oil segment in India. This forms an important portion of revenues of the company from India.

According to Mr. Smits, "Globally, Cargill has long been a strong votary of free trade and we strongly feel that if the world has to feed 9.5 billion people by 2050, it has to allow comparative advantages to play out which can be best done through free-trade." He further added that free trade is not a zero-sum game, which means that all sides can have a win-win situation.

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

23.2. Samsung plans four IoT experience centres in India

IBEF, Oct. 09, 2019

Samsung Electronics Co. Ltd, a South Korean multinational company, plans to set up four more state-of-the-art experience centres in India to demonstrate its end-to-end Internet of Things (IoT) solutions to contribute in the growth of its business in the country.

According to the company, such centres will provide solutions to the consumers for smarter homes and, this in return, will help improve sales of the company. These centres are most probably to be set up in Delhi, Mumbai, Chennai and Hyderabad.

The company first introduced its first mobile experience centre for the Indian market in Bengaluru in September 2018.

The Opera House off Brigade Road, which is a 33,000-sq. ft store is a standalone property, used during the British era to stage plays. This houses Samsung's largest mobile experience centre globally.

"We will launch four more such centres in other metro cities," Mr. Raju Pullan, Senior Vice-President, consumer electronics business, Samsung India, said in an interview.

However, no details of the investment or any timeline for setting up these centres were shared by the officials.

All the existing IoT-enabled products, besides smartphones and wearable devices are displayed in the Opera House's experience zone. Consumers can also have an experience of virtual reality (VR) and artificial intelligence (AI)-based products.

Apart of this, consumers can pre-book the home theatre zone at the Opera House to watch movies.

This expansion of IoT experience centres is sync with Samsung's complete strategy to develop an artificial intelligence-based ecosystem, consisting of solutions for homes and workplaces. These experience zones will be later extended to the company-owned branded stores.

Mr. Pullan further added, "Samsung Bixby is the platform that we are investing in India. The investments on Bixby have not only been in mobiles or TV, but also to make, for example, refrigerators smarter. Like the Family Hub (for) the fridge, the microwave and washing machine can also be connected to one ecosystem."

Samsung's Family Hub smart refrigerators are Bixby-enabled, a virtual assistant developed by Samsung. The fridge let the users to answer calls or access third-party apps from a Galaxy smartphone, and even help them find a nearby restaurants, share notes, pictures, videos and music by making use of the Family Board feature.

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

24.1. No reason why India-US trade deal can’t be done quickly: Wilbur Ross

Livemint, 03 Oct 2019, Asit Ranjan Mishra

US commerce secretary says Modi has a strong position, making it a lot easier to take decisive action

The interim trade agreement was expected to cover tariff-related concessions

US commerce secretary Wilbur Ross on Thursday said there was “no structural reason" why there can’t be a trade deal with India quickly, though he differed with trade minister Piyush Goyal on India’s e-commerce policy.

Speaking at the India Economic Summit organized by the World Economic Forum, Ross, however, said that neither country had said that a trade deal will be signed in “5 minutes". He was referring to expectations that US President Donald Trump and Prime Minister Narendra Modi could announce a limited trade deal during their meeting either in Houston or in New York last month.

“Pre-election, there was undoubtedly some constraints on India to deal with certain matters. Now that the election has come and gone and Prime Minister Modi has a very clear strong position in Parliament, it should be a lot easier to take decisive action," Ross said.

Despite the seeming bonhomie between Trump and Modi, India-US trade relations have been fraught of late, especially after Washington withdrew zero-duty benefits worth $6 billion to Indian exporters, and New Delhi responded with retaliatory tariffs on 29 products imported from the US.

The limited or interim trade agreement was expected to cover tariff-related concessions for US farm products, pricing of pharmaceutical products such as stents and knee implants, and information and communication technology products in return for restoration of duty-free benefits for Indian exporters.

Goyal said a trade deal has to keep in mind local factors and multilateral commitments. “On certain issues, there can be a difference of opinion between the two countries," he added.

The US has been highlighting its rather minuscule trade deficit of $16.9 billion with India, often putting it on the same pedestal as China with whom it has a trade deficit of $419 billion. The US commerce secretary clarified that the Trump administration was concerned about the trade deficit relating to artificial and protectionist barriers and is not borne out of comparative advantage. Ross said while he was aware of the difference in degree of trade deficit the US has with China and India, it does not mean the US should not be dealing with unfair practices with other countries even if they result in smaller trade deficits.

“Most of the things we are requesting from India would not only help US, a lot of these would also help India itself. India, for example, has a wonderful opportunity right now to take advantage of trade dissension elsewhere," he added.

Ross said that during his closed-door bilateral meeting with minister Goyal he would share the areas where China is a big exporter to the US and the possible ways India can take advantage of it in changing that mixture.

“We are not just focusing on deficit. We are focusing also on total trade," he said.

On e-commerce policy, Goyal clarified that the Indian government was very clear that it can’t allow small retail with 120-130 million people dependent on it to die. “E-commerce is a platform that provides opportunity to buyers and sellers in an agnostic fashion. It is not expected to be a platform for predatory pricing," he added.

However, taking a contrarian view, Ross said if 100 years from now, India still has as many small retailers as now, it would have held back the growth of the country immensely. “It is a question of proportionality, timing and balancing," he added.

24.2. Opinion | China has pulled ahead of India on far more than the economy

Livemint, 08 Oct 2019, Niranjan Rajadhyaksha

In economic terms, it’s around a dozen years ahead of us, but the gap is much larger when social indicators are considered

The spectacular rise of China over the past few decades has no parallel in human history. The People’s Republic of China was established 70 years ago this month under conditions of economic misery. It is today the main geopolitical challenger to the US. As a result of its profound economic transformation, China has taken a lead over India in the past two decades. How large is this lead?

This is a question worth asking as the Chinese economy inevitably begins to move out of the fast lane now that China is a middle-income country. The loss of momentum will perhaps be deeper than expected if the strategic squeeze being applied by the US has its desired effect. A forthcoming working paper by economists M. Zhu, L. Zhang and D. Peng estimates that the rate of expansion of the Chinese economy will be down to 4% by 2030. A few private sector economists believe that China could end up growing at half that rate.

Let us begin with standard economic measures. This column takes data from multilateral agencies such as the International Monetary Fund (IMF) in order to make the numbers comparable, though the use of the dollar as a unit of measure means these comparisons are sensitive to movements in the exchange rates of the two Asian giants.

At the turn of the century, the Chinese economy was 2.5 times the size of the Indian economy. It is now nearly five times larger. The gap looks a little less daunting when it is seen on a time scale. India’s gross domestic product (GDP) in 2019 will be around $2.9 trillion. China crossed that mark in 2007. In other words, India is around a dozen years behind China in terms of economic size.

The record is very similar when we consider average incomes. The average Chinese was twice as rich as the average Indian in the year 2000. She is now nearly five times richer. It is a broadly similar story if we consider purchasing power parity, rather than market exchange rates. The average income in India in 2019 will be an estimated $2,972. China was at this level in 2006. Once again, it is a gap of a dozen years.

What really distinguishes China from India is the ability of the former to grow rapidly on a sustained basis instead of in short bursts. For example, China doubled its per capital income from the $3,000 level in five short years. This is similar to the rate at which a country such as South Korea achieved in the 1980s.

Indonesia had an average income of around $3,000 in 2010. It has not yet been able to double its per capita income from that level, and may struggle to do so even by 2024, going by current IMF forecasts. The big question to ask, now that Indian per capita income is around that $3,000 mark, is this: Will real incomes double from here at Chinese or Indonesian speed?

If the gap in economic terms is around 12 years, what about the gap in social indicators? Here are a few health indicators that can give us an idea about the overall gap in social indicators. Let us start with the prevalence of stunting among children below five years. Around a third of Indian children were stunted in 2014; China faced the problem with the same intensity way back in 1990. Less than a tenth of Chinese children below five years fall prey to stunting today.

Consider births attended by skilled health workers. In 2016, 81.4% of births in India were in proper medical centres. This has been an impressive improvement. However, China was at 94% as long back as 1990. Almost every birth in China today is overseen by a trained health worker.

The third example is access to sanitation. In Indian cities, 72.01% of the population had access to at least basic sanitation services in 2017. Compare this with the 77.49% of Chinese city dwellers with access to sanitation in 2000, or the 90.79% today. It is much the same in the rural areas. 52.23% of Indian villagers had access to decent sanitation in 2017. China was at this level in 2005. Of course, these numbers could yet change dramatically, depending on the success of the Swachh Bharat programme.

The upshot: China is around a dozen years ahead of India in purely economic terms, but the gap is far larger when social indicators are considered. It is important to remember that China had crossed India’s current levels of social indicators when its per capita income was far lower than $3,000.

A lot of the ongoing discussion over the gap between the two countries focuses on the former, rather than the latter. However, they need to be considered together because of their interlinkages. India cannot provide a better quality of life to its citizens unless it maintains rapid economic growth on a sustained basis for at least the next two decades. And rapid economic growth will not be sustainable unless there are investments in human capital, especially if the country’s demographic dividend is to be meaningful.

Niranjan Rajadhyaksha is a member of the academic board of the Meghnad Desai Academy of Economics.

25.1. China opens public hospitals for Dr Reddy's Laboratories generic drugs

IBEF, Sep. 27, 2019

Hyderabad-based Dr Reddy's Laboratories (DRL) is the first Indian company to get approval for supplying generic drugs to China's public hospitals.

It was among three bidders, the other two being Chinese companies. The drug that it would supply is called Olanzapine, used to treat schizophrenia and bipolar disorder. This is part of a plan by China's government for a nationwide experiment to change their drug procurement policy, to cut the cost of generic medicines. The trial began last December, in 11 cities, with drug makers asked to bid for supply of 25 common generic drugs to hospitals.

Dr Reddy's had not responded to a request for comments at the time of going to press.

Deepak Malik, analyst with Edelweiss, said the opportunity was a small one, at US$ 20-30 million, but a step forward for the company in the Chinese market. "This definitely boosts their presence, where it emerges now as a serious player," he said.

DRL's share price has gained about 11 per cent since its August low, on improving fundamentals. It is now the first Indian company and the second international generics one (after Sandoz) to successfully participate in a Chinese bidding process. The overall revenue gain for the Olanzapine contract could be US$ 10-30 million, depending on market share gain, say analysts at Nomura. More important, though, is the ability to participate in other such tenders, more important for prospects.

China opens public hospitals for Dr Reddy's Laboratories generic drugs

Another analyst noted: "The Chinese government is focussed on reducing spending on generic drugs. This has made many global drug majors re-think their China strategy. AstraZeneca had to cut its cancer drug price by 70 per cent or so last December. Similarly, prices of some common blood pressure medications had fallen recently. This is a good time for Indian players to raise their presence in the US$ 137-billion Chinese market. Players like DRL have early-mover advantage."

Procurement prices in government tenders for hospitals are already lower by 20-25 per cent.

Meanwhile, DRL has expanded its China team and is conducting biostudies there. These take around a year and analysts say that from filing to approval, it can take 12-18 months. "In China, DRL is growing in strong double-digit (annually). It has already earmarked 70 products to be filed over three–four years," Malik said.

DRL is also in the process of expanding the capacity of a plant there with Kunshan Rotam. Edelweiss said, "Currently, DRL owns 51.3 per cent interest in its joint venture (JV) with Rotam but does not consolidate sales because board seats are divided 50:50. In the future, if DRL acquires a higher share of voting board seats, the company will consolidate, using the acquisition method." The JV has a sales and marketing team covering 5,000 hospitals in China.

In the first quarter of 2019, DRL got approval for a US$ 1.6 bn anti-blood clotting drug (Clopidogrel) from the Chinese regulator. This was after a 11-year wait and would be DRL's biggest product in China in terms of addressable market. The drug is now undergoing generic equivalent assessment (China requires drug makers to conduct bio-equivalence studies). It is used primarily to prevent blood clots and help in related cardio-vascular problems. Product launch is still some way off.

China is the world's second largest single-country pharmaceutical market, after America. According to estimates, a fourth of drugs by value to Chinese hospitals are supplied by companies outside of China.

China is undergoing some market-friendly reforms which will expedite the generic approval timelines.

These typically took seven to eight years and the government wished to hasten this. In recent months, approvals for companies from outside China have increased, say analysts.

Growth in China remains important for DRL. It faces headwinds in the US market, with pricing pressure. Dr Reddy's has been re-working its US strategy, selling loss-making proprietary products, cutting costs and focusing on niche products.

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

25.2. China opens to Portuguese grapes

Fruitnet, 26 Sep. 2019, Luisa Cheshire

Portuguese grapes have gained access to China after the two countries agreed an export protocol

China has given the green light to Portuguese table grapes after inking an export protocol with Portugal’s agriculture ministry, Chinese customs authorities have announced.

In a statement posted on its website, China’s General Administration of Customs said Portuguese table grapes that comply with requirements set out in the ‘Protocol of Phytosanitary Requirements for Export of Portuguese Table Grapes to China’, dated 19 September, could be imported with immediate effect.

The requirements set out in the protocol agreed last week include measures to prevent the entry into China of more than a dozen quarantine pests.

Therefore, all Portuguese production sites and packing and storage facilities must first be certified by and registered with Chinese authorities, the protocol states. In addition, Portuguese table grapes will be subject to cold treatment.

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AAPI

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NEWSLETTER, 20-X-2019

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

- INDUSTRY, MANUFACTURE

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