AAPI: May 2023

DELHI, May 2023

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. PIB India cluster will visit Hyderabad and Delhi in new trade mission next week
22. India trade: US emerges as India's biggest trading partner in FY23 at $128.55 bn; China at second position
23. Atos’ Eviden to Drive Key Innovation Out of India
24. Walmart Hopes to be a Part of Indian Economy for Decades
25. Kolkata metro trial run under Hooghly river successful, PM says 'encouraging trend’ for public transport

* * *

DELHI, MAY 2023

NEWSLETTER, MAY 2023

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- General policy, Infrastructures, Country Finances, etc.

1. Top of the Pop? India Rich, Indians Not So

ET, 21 Apr. 2023

Going by population experts using previous data from the United Nations, India’s population will surpass China’s this month — that is, if it hasn’t already. This is one milestone where it has overtaken its northern neighbour to become the most populous nation with 1.4286 billion people in a planet of 8 billion-plus. But a bigger milestone awaits a quarter of a century from now when India is scheduled to hit its peak population. The world’s third-biggest economy in 2050 will look back on the intervening period to assess whether policymaking delivered on one statistic: per-capita income. India is currently in a scrum of lower-middle income countries after having doubled per-capita income in a decade, at growth rates that trail the average for the cohort. The hurdle for moving into the upper-middle income category would require India to halve the time it takes to double its per-capita income. That would involve sustaining economic growth of over 8% over the next five years. On current indications, growth will settle around 6.5% over the current year and the next.

Then there is the matter of equity. Income-tax at present sets in at four times the per-capita income. If India manages to double its per-capita income over the next five years — and that’s a big if — the earliest incidence of income-tax would still be high by international standards. That means a largish role for the state to play Robin Hood. India will be saddled with Big Government, although it would have to withdraw in some measure from business to unshackle the economy.

Does India have a shot at becoming a high-income economy before its population begins to decline? The answer is no. The economy would have acquired a size that would render rapid growth practically impossible. The best case outcome would be India moving from lower-middle to upper-middle income status. Where it ends up within that band is a policy-driven result. Mass affluence is unlikely before peak population and impossible afterwards. India is on course to becoming rich. Its population is not.

2. Why gold is a boon for India’s growth story, and what its monetisation via formal channels can fetch

ET, 24 Apr. 2023

Gold's various attributes — good collateral, easy liquidity, and a hedge against inflation — have stood the test of time. Monetisation of even 1% of India's privately held gold, roughly pegged at INR80 lakh crore-INR110 lakh crore, will augment households’ financial savings, which is vital for investments and economic growth.

In 2014, the veritable treasure trove of gold held in the vaults of Sri Padmanabha Swamy Temple in Kerala was roughly estimated at more than USD20 billion. This estimate didn’t factor in some yet-to-be-opened vaults. Now, almost a decade hence, the temple gold’s valuation could be much higher.

To put things in perspective, the temple gold’s value is so huge that its liquidation, for example, would have spared the government from dipping into its coffers to recapitalise public-sector banks saddled with delinquencies. It also highlights the importance of savings in gold. Ancient kingdoms created humongous wealth through physical savings in gold which ensured the well-being of their subjects.

The narrative hasn’t changed much in the modern day as well.

Remember the balance of payments crisis that hit India in 1991 and the country’s import cover fell to just two weeks? The government pledged gold stocks and secured emergency funding from multilateral institutions. When even central banks find good use cases of gold and continue to accumulate it to bolster forex reserves, individuals cannot be faulted for their penchant for the yellow metal. By this reasoning, it would be naïve to dismiss gold as an unproductive asset.

Most notably, in the recent RBI consumer-confidence survey, there is little change in household inflation expectations. This means Indian consumers’ tryst with gold will continue – a reason why attempts to monetise gold stocks should not lose steam.

Don’t miss the shine

Though official data on gold stock is unavailable, extrapolation of a decade-old study should peg privately held gold in India at INR80 lakh crore-INR110 lakh crore, which is 60% of total bank deposits. Other forms of savings trail significantly. Mutual funds’ assets under management at INR40 lakh crore fall 2.5 times short. Retail participation in equities lag far behind. As of March 2022, stocks held by retail investors were worth INR20 lakh crore and only 90 million Indians have demat accounts out of the 1.4 billion population.

Often despised for the lack of economic value-add and as a means of mere adornment, gold’s utility as an investment avenue is sometimes overlooked.

Gold also bestows significant economic benefits. Its various attributes — good collateral, easy liquidity, and a hedge against inflation — have stood the test of time. Central banks use it as a hedge against exchange-rate fluctuations. For banks and NBFCs, gold loans are an attractive proposition as the risk weight is much lower.

A plausible global slowdown for the next couple of years bodes well for gold. During the past four NBER (National Bureau of Economic Research)-defined recession episodes, dollar-denominated gold prices surged 10%-12% and the ongoing slowdown should make no difference to this trend. The US Fed’s likely climbdown from a tight monetary stance and a weaker Dollar Index (DXY) should reinforce this behaviour, aggravated by a looming threat to dollar dominance from the new Russia-China axis, with many Asian and African nations also eager to bypass it in trade invoicing.

These are positive externalities for gold prices and increase the value of domestically held gold. Monetisation of even 1% of the abovementioned gold stock augments households’ financial savings, which is vital for investments and economic growth. Rising gold prices also facilitate households to avail higher loan amounts.

Households by definition also imply micro and small enterprises for whom loans secured by collateralising gold form a vital part of working capital. This helps improve the financial health of these entities and contributes to overall economic growth, through job creation and exports.

Opinions that critique gold for India’s current account deficit could be myopic. While gold accounts for 10% of India’s import bill, fuel constitutes 35%. A lasting solution to India’s trade deficit lies in restricting fuel consumption.

Gold is also a major ingredient in the gems and jewellery industry, which contributes significantly to exports that jumped from INR1.56 lakh crore in 2012-13 to INR2.79 lakh crore in 2022-23. Besides, the gold-mining industry is a major employment generator. A 2013 PwC study estimated that gold boosts India’s annual economic output by at least USD30 billion.

The power of monetisation

Optimal use of gold holdings hinges on increasing formalisation. Two-thirds of the gold-loan market is dominated by unorganised players. The rest split between banks and non-banking institutions. Bringing more customers into the formal fold will lead to an improvement in India’s credit-GDP ratio thereby providing an impetus to economic growth. The country’s credit-GDP ratio is languishing in the early 50s levels and woefully short of its peers.

Rural populace, suffering from an erosion of purchasing power due to high inflation and the ill effects of an informal economy, will particularly benefit. Bringing this population under the fold of formal finance saves them from usurious interest rates and boosts their purchasing power, which in turn has a positive bearing on the fortunes of industries dependent on rural demand like FMCG and two-wheelers.

One may argue that interest rates charged by gold-loan players are high. However, they disburse such loans with a quick turnaround time, which translates into lower transaction costs. For instance, a typical daily-wage earner would have to make several trips to a bank branch for a loan costing him a couple of days’ wages, while a gold loan disbursed much faster saves him this hassle compensating for the higher interest rate.

Devising effective means to monetise India’s household gold stock will be a win-win for both financial institutions and the industry. Attempts to tap into this stockpile, like the gold deposit scheme, which was unsuccessful in the past, may be revisited with appropriate tweaks like less stringent conditions on minimum deposits and favourable tax treatments. Making gold deposits eligible for statutory reserve requirements will be an added incentive for banks to aggressively promote such schemes.

India’s annual gold imports averaged around 700 tonnes in the past decade, exhibiting significant demand inelasticity and implying insensitivity to price fluctuations. As an investment option, gold might edge out the traditional bank deposit as returns from the latter are taxed. Restricted domestic supply will mean imports will continue to fuel domestic gold consumption. Measures like the 80:20 scheme had the unintended consequence of encouraging smuggled gold which only distorted prices. Higher import duties will also fail to act as deterrents, as the metal is tightly woven into our social and cultural fabric.

If individuals wish to stock gold through legal means that shouldn’t be a concern. A gold loan is to be seen just like other products — a home loan for instance. It could even fare better than the former on several counts. For instance, a sub-prime crisis-like scenario triggered by a drastic house-price collapse, which brought down many giants in its wake, is unlikely with a gold loan. It is high time gold is viewed as a productive asset adding an economic value, unless sourced illegally or used for speculative purposes.

(The writer is group chief economist, Manappuram Group. Views are personal)

3. India's major ports achieved record-breaking milestones in FY23, which boosted trade and economic growth: Mr. Sarbananda Sonowal

Press Information Bureau, May 1, 2023

Union Minister of Ports, Shipping & Waterways, and AYUSH, Mr. Sarbananda Sonowal informed that FY23 saw India's major ports reach unprecedented heights, setting new records across various key performance indicators. He was speaking at the second edition of FICCI’s Port Infrastructure Conclave in New Delhi.

He noted that major ports collectively handled a record-breaking 795 million tonnes of cargo, registering a 10.4% growth over the previous year. In addition, the highest-ever output per day of 17,239 tonnes was achieved, witnessing an increase of 6% compared to last year. Moreover, the best-ever operating ratio was achieved of 48.54%. He also informed that the major ports recorded their highest-ever number of vessels handled, reaching a total of 21,846 vessels in the year.

Mr. Sarbanda Sonowal remarked that the Indian shipping ministry has witnessed a remarkable increase in the number of ships, gross tonnage, and seafarers employed. The number of Indian seafarers has grown from 117,090 in 2014 to a remarkable 250,071 in 2022, registering an increase of almost 114% in just nine years.

The Union Minister discussed India's development of advanced port infrastructure and provided an overview of upcoming plans for the marine industry. He stated, "Maritime transportation accounts for 95% of India's trading by volume and 70% by value. The most cutting-edge port infrastructure is crucial for efficient and smooth business.”

He emphasised the importance of incorporating technology into port operations, stating that "smart ports are the future, and we are already making significant strides towards this goal." India aims to optimise port operations and boost efficiency by leveraging data analytics and artificial intelligence.

He further said that major ports are under development to become hydrogen hubs for handling, storage, and transportation of green hydrogen.

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

4. Apple generated over one lakh direct jobs in India in two years: MoS IT

IBEF, Apr. 19, 2023

According to Mr. Rajeev Chandrashekhar, Minister of State for Electronics and Information Technology, the Apple ecosystem in India has created over a lakh new direct manufacturing employment in the past two years.

About 70% of these are women between the ages of 19-24 who are beginning their professions, developing their abilities, and making life easier for their families, he continued.

Apple has increased its manufacturing in India, and in FY23, iPhone shipments from India increased to more over US$ 5 billion. India's entire smartphone exports also surpassed US$ 10 billion for the first time in a fiscal year, supported by Apple.

Since 2017, Apple has collaborated with vendors to build new iPhone models and supply an increasing number of components. The business started producing iPhones in India in 2017.

Prior to the opening of the company's second store in Delhi on April 20, 2023, Mr. Tim Cook will meet with Prime Minister Mr. Narendra Modi and the country's deputy IT minister on April 19, 2023. During his meeting with the government, Mr. Tim Cook is likely to discuss the company's plans to produce more goods, such as earphones and smart watches, and export them from India in addition to iPhones, to build the component eco-system, and even to begin local production and sourcing of manufacturing equipment through its partners in the nation. He further stated that this agreement is in line with their strategy of expansion in the fluoropolymer and electronic segments, manufacturing high value molecules and boosting the value chain with the support of our customers.

In Mumbai, Apple opened its first self-branded retail location in India, with the Chief Executive Officer Mr. Tim Cook in attendance.

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

5. India retains third spot as a unicorn hub, shows Hurun report

IBEF, Apr. 20, 2023

After the United States and China, India has retained the third-highest number of unicorns in the world.

India trails behind China and the US, which have 316 and 666 unicorns, respectively. Since the start of the pandemic, India has gained 14 new unicorns.

The report claims that BYJU's is the most valuable unicorn in India, with a valuation of US$ 22 billion, followed by Swiggy and Dream11, each with a projected value of US$ 8 billion.

BYJU'S is also one of the top ten unicorns with the largest valuation rise since pre-Covid.

The research also noted that China and India are the two nations that produce the most unicorns outside.

Founders from India co-founded 70 unicorns outside of India, whereas China co-founded 32 outside of China, compared to 316 in China.

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

- Agriculture, Fishing and Rural Development

6. Niti Wants States to Formulate Own Agritech Policy

ET, 21 Apr. 2024

The NITI Aayog has suggested states formulate their specific Agritech policy to promote agriculture-based start-ups while enabling digitalisation of licensing regime, ensuring access of quality data and last mile connectivity to such startups to expand operations.

ANIAtal Innovation Mission, NITI Aayog, UNCDF team up to make India global agri-tech leader

In its white paper, the Aayog said that the agritech solutions available in the market are making the lives of smallholders better by improving access to quality input, market, reducing risks, access to information, and a host of other products and services, resulting in improved productivity and price realisation. “Still, the agritech startups are not scaling up as fast as the start-ups in other sectors as they face challenges regarding access to quality data, regulations and the absence of agriculture-related infrastructure,” it said.

7. Rural India Showing Urban Aspirations

ET, 29 Apr. 2023

There’s a transformation taking place in consumption with people in rural areas and small towns mirroring the aspirations of urban ones, Nestle India chairman Suresh Narayanan said in an interview.

“Rural markets and smaller towns are aspirationally emulating urban India. I see a strong traction, a new wave in consumption,” said Narayanan, who leads the India unit of the world’s largest packaged foods company. “Infrastructure development, two-way commerce, digitisation and impact of social media are aiding all this.”

Nestle India, which makes Maggi instant noodles, KitKat chocolate and Nescafe coffee, reported its highest growth in a decade in the March quarter, with the exception of 2016, which was off a low base in the previous year when Maggi noodles hit a hurdle. Sales rose 20.43% to ₹4,808.40 crore in the March quarter.

“People are living for the moment. Post-Covid consumer behaviour has undergone a change — the philosophy seems to have become kal ho na ho,” Narayanan said. “Might as well enjoy what is today and see what will happen -- seems to be the thought process.”

Nestle, which follows a January-December fiscal year, reported a near-25% increase in net profit in the March quarter on April 25, attributing this to higher prices and steady demand.

This is also the fastest growth among fast-moving consumer goods (FMCG) companies that have declared March quarter earnings so far.

Consumer packaged goods makers increased product prices 5-25% over the past five-six quarters across categories to offset surging cost inflation as well as to protect margins. While global inflation, geopolitical tensions, monsoon uncertainties and fuel costs are challenges, there is an overall, positive sentiment. “There is a strong surge of aspirations and we have taken it upon ourselves to ensure that availability meets aspiration,” Narayanan said. “Consumers are looking for companies that have stayed the course.”

Unlike FMCG companies such as Hindustan Unilever Ltd (HUL), Marico or Dabur, up to 80% of Nestle’s sales still come from urban markets. However, other areas are now making their mark felt. “Rural markets are growing not only at entry level packs but also value-added packs,” Narayanan said.

Nestle’s revenue growth was above estimates, driven by price hikes, ICICI Securities said in an April 25 note. “This performance has benefits of continued deeper expansion in lower tier towns and villages and a portfolio which is better insulated to overall market slowdown,” the report said.

Stating that growth has not been restricted to particular geographies, Narayanan said metros and mega cities have been growing at strong double digits, while smaller markets have also turned in strong double-digit increases, despite prices being increased even for small packs. “This overall trend is likely to continue, assuming there is nothing major to derail the Indian economy and rural markets,” he said. “This should be a reasonably clear-cut case of enhancement of the consumption platform.”

Indian consumers are evolving and looking at value more than simply price points, he said.

While prices of commodities such as edible oils, wheat and packaging materials have softened, milk prices remain high, which could hurt margins of chocolates, confectionery and dairy. Analysts said gross margins of companies with a large exposure to dairy and coffee could come under pressure. “Key risks (for Nestle) are consumption slowdown linked to economic performance,” the ICICI Securities report said.

Profit margins of FMCG companies have started to pick up for the first time in five quarters with declining raw material costs, but rural continues to lag urban growth. “Improving product mix and easing inflationary pressures would aid margins further in FY24 across the board,” Nuvama Institutional Equities wrote in a report earlier this month. “But pace of rural recovery and rupee depreciation could negate raw material deflation -- both remain key variables worth monitoring.”

Narayanan said inflationary pressures are expected to be lower than last year. “Last year, we were combating almost 20% inflation. It was a very, very difficult call for us. This year inflation looks a little more benign except for coffee and milk, which could continue to hurt margins,” he said.

Analysts said Nestle India’s growth was ahead of street expectations. Nuvama Equities said in its note that all products delivered double-digit sales growth, indicating strong execution by Nestle. While Nescafe reached an all-time high market share in the quarter, milk and nutrition products were among the key growth drivers of the company in the March quarter.

8. Small Grocery Stores Turn Big Sellers, Again

ET, 12 May 2023

Small grocery stores are witnessing a resurgence in business, with sales returning to pre-pandemic levels and higher product stocking, even though the habit of shopping online and from modern trade gained by consumers during Covid remains, show numbers from researcher NielsenIQ and the financial results of top FMCG firms.

The 25-year-old company operates more than 600 retail stores including supermarkets and hypermarkets, selling groceries and daily household products from cooking oil to Indian spices, the website shows.

Industry executives said while small stores, or kiranas, are seeing a strong uptick in business, many markets in urban and semi-urban India are experiencing a balance between the traditional trade and new channels. FMCG companies said they would continue their thrust on direct distribution in both urban and rural markets.

NielsenIQ said in its March quarterly update that traditional trade led by small grocers reported volume growth of 1.9%. It was after four quarters that they were reporting an expansion in business. Modern trade — which was on a positive growth trajectory — grew at the fastest quarterly pace at 14.6% in the January-March period.

“For the first time in the past year, we saw a turnaround in traditional trade, witnessing a consumption growth revival of 1.9% (on a very large base), primarily driven by grocers. Small shops (traditional trade) were under duress for more than a year,” said Roosevelt D’Souza, NielsenIQ’s India customer success leader.

Latest financial results of companies show that modern trade and ecommerce together are now more than a fifth of total sales for most FMCG companies including Dabur, Parle Products and Tata Consumer Products, with ecommerce growth rate being the fastest.

For Tata Consumer Products, the contribution of ecommerce has gone up from 7.3% of sales in FY22 to 9% last fiscal year ended March 31. Modern trade is now 14% of sales. While modern trade grew 21% from the year before, ecommerce expanded 32%. “The beauty of ecommerce is, it allows us to pilot all our innovation and figure out what's working, what's not,” chief executive Sunil D’Souza told analysts recently.

For Hindustan Unilever, digital accounts for 30% of the sales now as compared to 20% a year ago. The figure includes orders placed through ecommerce sites, its 14 direct-to-consumer websites, and the Shikhar app which is for B2B orders. FMCG companies said despite the strong growth rate in modern trade and ecommerce, they would continue their thrust on direct distribution in both urban and rural markets, targeting small grocers. Nestle SA said in its latest annual report that growth in India had been driven by “increasing distribution of products in small shops” across big markets and towns.

Beverage maker Coca-Cola’s India unit stepped up the availability of its products to over 300,000 retail stores in the quarter ended March 31, 2023, the Atlanta-based company said. While traditional trade still accounts for over 90% of FMCG volumes, the channel had slowed down during the pandemic when consumers switched to grocery ecommerce.

Marico CEO Saugata Gupta told analysts that general trade would be key channel of the future, even though it has been underperforming in last few quarters since a significant portion of that had been in rural markets.

9. By riding the global superfood bandwagon, India will transform its agriculture sector: Prl Adviser to Odisha CM

ET Gov. 10 May. 2023

"With deliberate and well-planned strategy, it can be ensured that spices, fruits and vegetables from India capture a larger slice of the export market. Branding, packaging and campaigns in the global marketplaces can lead to positive outcomes for the country’s agriculture sector."

Turmeric has anti-inflammatory properties and is recommended by physicians for a whole host of ailments.

The widespread health consciousness amongst people has given impetus to the health food movement. Preference for food categories labeled variously as climate conscious food, veganism, gluten-free, probiotics and functional food is on the rise. The term “superfood” has been created by nutritionists, health writers and marketeers. And this bucket includes various items like fruits, nuts, cereals, spices, condiments etc. According to market analysts, the global superfood market is expected to grow from USD 164.38 billion in 2021 to USD 228.04 billion in 2026 at a CAGR of 6.77%. Many countries have benefitted by tapping the global market leveraging their niche products as “superfood”. Much of the boom in sales is driven by the claimed health benefits.

Countries like Brazil have been exporting indigenous berries like acai berry, blueberry and camu camu for decades. In 2022, acai berry market was valued at USD 1.1 billion. The traditional Middle Eastern Dates command a market projected to be USD 8 billion by the year 2027. The market size of salmon is USD 16 billion and growing, mostly sourced from Norway. Olives marketed as antioxidants have been dominated by the countries in the Mediterranean basin with a global market size of USD 14 billion and USD 1.4 billion for olive oil. Avocado fruit from California has a market size of USD 20 billion. A relatively less known grain till a few years, Quinoa has an astounding market size of USD 91 billion. Originally sourced from Peru it is on many breakfast platters. In the above backdrop, what is India doing?

While other countries have capitalized on their native strengths to become global giants and claim market shares, Indian farmers are taking modest steps. Even though India is a top agri-exporter in the world with USD 50.21 billion worth of export during FY22. Its portfolio is largely dominated by commodities like rice, sugar, spices and oil meals. Indian contribution to superfoods could be many but turmeric, amla, moringa, jackfruit and millets can be potential winners.

Turmeric is widely cultivated in the country. It has anti-inflammatory properties and are suggested by physicians for a whole host of ailments. It promotes healthy functioning of the cardiovascular system and aids in the fight against certain cancers. Its health benefits are documented and getting popular with the rising acceptance for turmeric lattes, detox teas and immunity-kaadha as dietary supplements. In the meanwhile, turmeric has caught the fancy of the world. Market researchers have projected that by 2025, the global curcumin market will be over USD 1.08 billion. India is a major producer of turmeric accounting for 80% of global production. During 2021-22, India produced 1.1 million MT out of which only 10% was exported.

The Indian gooseberry popularly called amla is one of the most recognized fruits. Its medicinal properties include astringent, anti-diarrheal, anti-scorbutic and carminative in nature. Amla is said to have 20 times more Vitamin C than other sources. It is also promoted as an anti-ageing supplement in the nutricosmetics segment. India cultivates amla across 95,000 ha and produces 1 million MT annually. India ranks first in area and production of amla. The global amla extract market size is huge at USD 39.54 billion.

Moringa or drumstick, as it is commonly known, is consumed across Indian households. It is a rich source of amino acids and has antihypertensive, diuretic, anti-spasmodic, antibacterial and antifungal properties. Moringa powder is a new entrant in the functional food segment. India is the top producer of moringa followed by some Asian and African countries. Nutrition and clinical specialists opine that a cup of Japanese matcha tea can be substituted with Indian moringa powder because it has more fiber, protein and calcium at a much less price. This drought-resistant tree is one of the most economically valuable products and can be quite remunerative for farmers. Moringa products such as flavoured tea, oil, powder, leaves and seeds have numerous applications in food, cosmetic, pharmaceutical and animal feed industries.

Jackfruit is increasingly becoming popular. It is rich in dietary fats. It is believed that potassium in this tropical fruit could help lower blood pressure and stave off heart disease, stroke, and bone loss. Jackfruit is processed as fruit bars, chips, ice cream, jam, pickle, squash and nectar. India is cultivating jackfruit across 187,000 ha. Countries like Vietnam have realized the commercial value of jackfruit. They are cultivating the fruit in large farms and have become market leaders in the sale of value-added jackfruit products. The Philippines is imparting online courses on commercial jackfruit cultivation and Malaysia has included jackfruit in its national agriculture policy.

Minor cereals like millets cultivated across the country have rich nutrition not unlike quinoa. Its properties have led to a large market size of USD 9 billion so far. It is recognized as a contributor to cardiovascular health, preventing the onset of diabetes, helping people achieve and maintain healthy weight, and lowering inflammation in the gut. The Government of India has already taken steps to increase its production. It has launched promotional schemes and has introduced MSP and other marketing assistance. Last week, the finance minister announced in the Union Budget 2023-24 that India intends to become the Global Millet Hub.

Odisha has pioneered efforts to increase cultivation of millets by establishing the State Millet Mission. The state has successfully promoted this indigenous cereal grown by tribal farmers in the highlands as a drought resistant crop. The state is home to influential women's Self-Help Group movement which has adopted millet and there are wide ranges of processed millet products being sold in Millet Cafes.

With deliberate and well-planned strategy, it can be ensured that spices, fruits and vegetables from India capture a larger slice of the export market. Branding, packaging and campaigns in the global marketplaces can lead to positive outcomes for the country’s agriculture sector. It is necessary to diversify from our commodity led exports to niche products. The export realization will be of much higher magnitude if the world accepts our products like it has done for olive oil, chia seeds, quinoa and avocado. It will not only earn the country valuable foreign exchange but also benefit the farmers and others associated in the supply chain.

(The author is Principal Advisor to Chief Minister of Odisha, and former Chief Secretary of Odisha; views are personal.)

10. India's horticulture sector holds untapped potential despite challenges

ET Gov. 26 Apr. 2023

To address the issues faced by the horticulture sector, Bayer and The Economic Times have come together to organise a national seminar called the India Horticulture Future Forum 2023 on 26 April 2023. The forum aims to deliberate on the future of Indian horticulture, focusing on developments, opportunities, and challenges in the sector.

Horticulture contributes around 30.4% to the Gross Domestic Product (GDP) while using only 13.1% of the gross cropped area.

India’s horticulture sector has proven to be more profitable and productive than the agricultural sector and has emerged as a rapidly growing industry. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India ranks second in fruits and vegetable production in the world, after China. The country's advantage lies in being a low-cost producer of fruits and vegetables, because of a combination of factors such as favourable agro-climatic conditions, availability of labour, and low input costs. As a result, fruits and vegetables account for almost 90% of the total horticulture production in the country.

Horticulture contributes around 30.4% to the Gross Domestic Product (GDP) while using only 13.1% of the gross cropped area, making it a significant player in India's agricultural growth. In recent years, the total horticulture production in India has even exceeded the total production of food grains, highlighting the potential of the sector. Horticulture not only contributes to the nutritional needs of the country but also creates additional job opportunities in rural areas, expands the range of agricultural activities, and generates higher incomes for farmers.

The productivity of horticulture has increased significantly from 8.8 tonnes per hectare (TPH) in 2001-02 to 12.1 TPH in 2020-21, leading to a sharp rebound in production and acreage, far outpacing foodgrains production since 2012-13. In 2021-22, the total horticulture production was around 341.63 million tonnes, with fruit production at around 107.10 million tonnes and vegetable production at around 204.61 million tonnes. With its vast production base in horticulture, there is ample opportunity for export, with fresh fruits and vegetables being a major contributor. APEDA estimates that the country exported fresh fruits and vegetables worth INR 11,412.50 crore during 2021-22. Bangladesh, UAE, Nepal, Netherland, Malaysia, Sri Lanka, the UK, Oman, and Qatar are the major export destinations for fresh fruits and vegetables.

But despite the fact that India's horticulture sector is growing, the country's share in global trade remains insignificant, accounting for only 1% of the global trade in vegetables and fruits. Export growth is being undermined by production challenges, marketing challenges, inadequate transport infrastructure, fragmented supply chains, and insufficient storage facilities. These factors result in delays and wastage and discourage farmers from improving the quality of their produce.

The horticulture sector faces many production challenges that stop it from realising its full potential such as small operational landholdings, lack of irrigation and poor soil management. Take for instance, small operational landholdings that limit the amount of land available for cultivation, which in turn limits the number of horticultural crops that can be produced. Limited land availability also affects crop rotation and the use of sustainable agricultural practices, as small farmers may not have the space to rotate crops effectively or implement sustainable soil management practices. This can lead to reduced yields and decreased soil fertility over time.

Insufficient access to water for irrigation, coupled with poor soil management practices such as over-tilling, over-fertilising, and monocropping, can reduce soil fertility leading to lower yields and lower-quality produce. Lack of irrigation can be particularly detrimental during dry spells or droughts, where crops can quickly wither and die due to insufficient water supply. In contrast, excessive water can also be harmful, leading to waterlogging, root damage, and reduced yields. The Government is addressing the irrigation problem through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), which aims to promote the development of irrigation infrastructure, expand the cultivable areas, and enhance on-farm water efficiency. Pests and diseases are another constant threat to horticultural crops. Insect infestations, fungal infections, and other diseases can spread quickly, leading to lower production levels and crop losses.

The limited outreach of farm insurance and farm mechanisation, combined with a lack of access to institutional credit for small and marginal farmers, contribute to lower investment in the sector. To ensure flow of adequate credit, the Government sets annual targets for the flow of credit to the agriculture sector, Banks have been consistently surpassing the annual target. Notably, the Government provides interest subvention of 2% on short-term crop loans up to INR 3 lakh.

Climate change such as changing weather patterns, droughts, floods, and other natural disasters is another significant challenge that can lead to crop failures and losses, which ultimately affects the sector's overall output. Land lease constraints also pose a challenge, particularly for small farmers who may not have access to adequate land for cultivation.

The horticulture sector also suffers because of weak Farmer Producer Organisations (FPOs) which typically play a vital role in the development of the horticulture sector by providing farmers with access to markets, financing, and technical assistance. The weakness of these organisations contributes to the sector's challenges, limiting farmers' ability to benefit fully from the opportunities available. Recognising the need to increase the bargaining power of farmers, the Government is implementing an FPO formation and promotion scheme with a budgetary outlay of over INR 6,300 crore. This scheme aims to promote the formation and strengthening of FPOs and agri-entrepreneurship development among farmers.

The horticulture marketing chain faces its own set of challenges due to the perishable nature of fruits and vegetables, which makes it difficult to store and transport them efficiently. Poor logistics and lack of equitable cold storage and warehousing facilities contribute to delays and wastages. The cold storage distribution among the states is inequitable with around 59% of the storage capacity (i.e., 21 MMT) present in the four states of Uttar Pradesh, West Bengal, Gujarat, and Punjab and most of it is only for the potato crop. Top crops have a short shelf life because of the absence of storage and warehousing facilities, which causes price rises in the same months every year. There is also a lack of guidance for farmers on which crops to plant, resulting in overproduction of certain commodities and shortages of others.

The horticulture sector will have to take measures to improve its production and value chain system. To address the issues faced by the horticulture sector, Bayer and The Economic Times have come together to organise a national seminar called the India Horticulture Future Forum 2023 on 26 April 2023. Grant Thornton Bharat LLP is the Knowledge Partner for the event. The forum aims to deliberate on the future of Indian horticulture, focusing on developments, opportunities, and challenges in the sector.

Despite the numerous constraints faced by the horticulture sector, there are several opportunities for improvement. One such opportunity is the Agricultural Marketing and Farmer Friendly Reforms Index, launched by the NITI Aayog, which ranks states and union territories based on their implementation of provisions proposed under the model APMC Act, joining the e-NAM initiative, providing special treatment to fruits and vegetables for marketing, and tax levies in mandis. The Government is also working on reducing crop losses through the Pradhan Mantri Fasal Bima Yojana (PMFBY), which provides comprehensive crop insurance coverage from pre-sowing to post-harvest losses against non-preventable natural risks. Another key initiative is the Centre's Cluster Development Programme which has the potential to revolutionise the value chain by enhancing its scale. The programme aims to promote the integrated and market-led development of pre-production, production, post-harvest, logistics, branding, and marketing activities by leveraging the geographical specialisation of horticulture clusters.

Meanwhile, the Ministry of Food Processing Industries has launched several schemes aimed at promoting the food processing industry in India, including the creation of cold chain infrastructure, agro-processing clusters, backward and forward linkages, preservation infrastructure, Operation Greens, and Mega Food Parks. These schemes provide various facilities to food processing units, such as storage, testing labs, and logistics, while also stabilising the supply and prices of perishable commodities and promoting their value addition. The Government has also introduced post-harvest infrastructure schemes to reduce post-harvest losses, a Land Lease Act to help legalise leasing and allow tenants access to insurance and credit, and Soil Health Cards to promote soil health.

India is globally recognised as one of the top producers of fruits and vegetables, and the horticulture sector has consistently performed well in terms of production. By implementing these measures, the horticulture sector can expand even further and generate increased profitability for farmers. This growth can also help meet the rising demand for fruits and vegetables, both domestically and internationally.

(This article has been published under ETGovernment Brand Connect initiative.)

- Industry and Manufacture

11. Hyundai Motor to invest US$ 2.43 billion (Rs. 20,000 crore) in Tamil Nadu to modernise and expand vehicle platforms in India's EV industry

IBEF, May 12, 2023

Korean auto major Hyundai Motor India Limited (HMIL) mentioned that it will invest US$ 2.43 billion in Tamil Nadu over the next ten years to improvise the vehicle platforms and expand its presence in the country’s fast-evolving electric vehicle segment. This investment will be further utilized to expand production capacity for internal combustion engines and electric vehicles, set up a battery pack manufacturing unit and establish charging infrastructure for Electric Vehicles (EVs), among others.

In this context, a Memorandum of Understanding (MoU) was signed by Managing Director (MD) & Chief Executive Officer (CEO) of Guidance Tamil Nadu, Mr. V. Vishnu and Managing Director (MD) & Chief Executive Officer (CEO) of Hyundai Motor India, Mr. Unsoo Kim in the presence of Chief Minister of Tamil Nadu, Mr. Thiru M. K. Stalin.

Hyundai Motor India Limited (HMIL) is in the process of investing US$ 487.22 million (Rs. 4,000 crore) to launch six models by 2028, in one of the largest product onslaughts in the electric vehicle category. The Ioniq 5 was the first of these versions to reach the market this year. The business additionally markets Kona EV in India.

To support Tamil Nadu's government ambition for creating a sustainable ecosystem for the state's transition to electric transportation, Mr. Unsoo Kim stated the company hopes to be a "strategic partner." In line with this, HMIL will set up a state-of-the-art battery pack assembly unit with yearly capacity to assemble 178,000 units. Additionally, over the course of five years, Hyundai will install 100 EV charging stations at strategic locations along major highways. This will include five Dual Ultra-Fast Charging Stations (DC 150 KW +DC 60 KW), 10 Single Fast Charging Stations (DC 150 KW) and 85 Single Fast Charging Stations (DC 60 KW).

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

12. India Needs More Affordable Housing Stock: Deepak Parekh

ET, 23 Apr. 2023

India needs a lot more mid-income and affordable housing stock and developers have to build after assessing this demand, said HDFC chairman Deepak Parekh.

“In the recent period, there has been a larger proportion of the incremental stock of housing towards the upper and luxury segments. Time and time again, many developers tend to build without correctly assessing where the real demand is,” Parekh said at a real estate conference organised by the Dainik Bhaskar Group on Saturday. “The demand for affordable housing is immense. Affordable housing projects at the right location and right price points may have lower margins, but the velocity of sales and cash flows are much faster.”

The HDFC chairman said builders should not be too ambitious in trying to launch too many projects at one time. “This is a mistake made repeatedly by many developers, only to end up getting cash-strapped or being overleveraged. Developers today have to bring in a larger share of equity into the project,” he said.

While many larger developers in tier-1 cities have opted to corporatise and professionalise themselves, it is not the case with smaller developers in tier-2 and tier-3 cities, he said.

“This is not about scale and size, it is about embracing better governance practices and transparency. This will go a long way in building your business for the long run,” said Parekh.

“There are so many large international investors looking at new real estate markets and while some of the marquee investors are already in India, they have largely restricted themselves to tier-1 cities. Sooner than later, they will want to expand, but they will do so keeping governance practices at the core of their investment decisions.”

Real estate developers have to value relationships and stick with lenders who support for the long haul, rather than going to the lender that offers you the cheapest loan, he said.

“As a cohort, developers are often viewed with scepticism. It is a high-risk business. How often has one heard ‘don’t trust developers, they never keep their word’. That perception has to change,” Parekh said.

Transparency and accountability are extremely critical in the real estate business, where quality and timely delivery are very important, he said.

“The days of underhand dealings are behind us because forensic audits can easily call out the bad apples. A good reputation takes years to build, but a misstep can erode it instantly,” said Parekh.

13. Motherson has all the pieces of the EV puzzle in place. Will the auto component maker’s big bet pay off?

ET, 28 Apr. 2023

The Noida-based auto-ancillary player, which has been on an acquisition spree, is likely to add more companies into its fold to make the most of the global shift to EVs. Can Motherson leverage its diverse product base and market presence to drive the next phase of growth?

More than two decades since the buyout of Ireland’s Wexford Electronics, its first in a string of acquisitions, the Motherson group seems to be in no mood to take its right foot off the pedal. As countries across the globe are in a hurry to phase out internal combustion engines (ICE), the Indian auto components maker is betting big on the opportunity from mass transition to electric vehicles (EV).

This is already reflecting in the Noida-based company’s numbers. For instance, the group’s listed entity, Samvardhana Motherson International Ltd (Samil), reported a 37% growth in its EV business order book for the six-month period ended September 2022. For the six-month period ending March 2022, it recorded a 27% jump in the segment. The total order book of Samvardhana Motherson Automotive Systems Group BV, a subsidiary of Samil which specialises in interior and exterior auto components, was pegged at EUR18.2 billion as of September 2022, up from EUR16.1 billion in March 2022 despite inflationary headwinds.

“This is part of the order book expected to get executed over a period of two years,” Vivek Chaand Sehgal, chairman and co-founder, Motherson Group, tells ETPrime.

In February this year, Samil acquired Germany’s automobile cockpit module assembly supplier SAS Autosystemtechnik GmbH. Almost half of SAS’s net revenue comes from EVs. In CY22, SAS recorded a net revenue of EUR896 million. The company expects cumulative revenues of over EUR3 billion over the next three years.

With this acquisition, Motherson has gained access to the growing EV pie as SAS already has an EV customer which alone accounts for 32% of the company’s revenue. Besides, a significant share of its revenue comes from premium vehicles.

Though Motherson has added nearly three dozen companies to its fold over the last two decades, Sehgal says more are likely to follow, especially in product categories with high growth potential such as modules and polymers as well as electronics. Sehgal points out that all the products required by Motherson’s customers are on the company’s radar.

So, will this strategy pay off in the long run?

Staying future-ready

According to a February 2023 research report by ICICI Securities, Samil’s exposure to EV makers is hardly 1%, with the Volkswagen and Daimler groups accounting for around 20% of the company’s revenue. The brokerage expects SAS to deliver a profit-after-tax (PAT) margin of 3%, resulting in additional earnings of INR2.5billion (INR 250 crore) on Samil’s estimated FY25 PAT of INR34billion (INR3,400 crore). “The said deal would enable Samil to grow profitably and potentially add fresh revenue opportunities beyond EUR1 billion per annum,” it said.

Sehgal, meanwhile, points out that Motherson’s acquisitions are always customer driven as the company takes into account the needs of the carmakers it deals with. “That’s why we have had 34 acquisitions [since 2002] — all of them successful,” he says.

Being an engine-agnostic company, Motherson has a presence in various product lines such as vision systems, wiring harnesses, modules and polymer products, and other emerging businesses which spawn elastomers, lighting and electronics, and precision metals and modules where large growth potential is foreseen. In Q3FY23, the emerging business had contributed INR1,626 crore to the company’s revenue with the automobiles segment accounting for a 78.2% share.

Most of the components currently supplied for ICE vehicles will continue to be provided for EV makers as they are common. However, EVs would see more components from Motherson, including front and rear bumpers and dashboards with more electronic devices. The group has been particular in making sure that its products remain relevant even with the shift in customer preferences and the emergence of new technologies such as hybrid, hydrogen-fuel cells, and so on.

According to Sehgal, EVs will add many futuristic features that are superior in look and feel, besides having a lot more in electronics and other advanced technologies while the design and styling will also be more cutting-edge. Among the new technologies that Motherson is working on is light-weighting of components to increase the range of EVs.

For example, new materials such as engineered plastics are being harnessed. Earlier, manufacturers were using materials like polyphenylene plastics. But now, with light-weighting becoming the fad, components need to be stronger to ensure the stability and structural integrity of EVs.

Engineered plastics, while being a stronger material, would likely increase the cost of a car. “That’s why electric vehicles are more expensive. You’re using new-age materials to reduce weight,” adds Sehgal.

What this means is that the whole design philosophy of vehicles is fast evolving as the priority is to make EVs as light as possible to get the maximum range without compromising their structural strength.

"If carmakers are ready to launch EVs, we are ready to supply components."

— Vivek Chaand Sehgal, chairman and co-founder, Motherson Group

Preparing to grab the opportunity

Motherson expects the demand for electronic components in passenger vehicles to go up. More cameras, mirrors, radars, sensors, and other electronic components will be used in the vehicles’ front and rear bumpers, dashboards, and doors to give an immersive experience.

“We’re the largest producers of dashboards or cockpits as well as doors. So, all of the technology that’s coming in, which is differentiating the car in terms of features, is pretty much coming out of the real estate that has been built by Motherson,” says Sehgal.

He adds that more new technologies will come to India over the next four-five years. “We are more than ready for it with 150 plants. If carmakers are ready to launch EVs, we are ready to supply components,” Sehgal says.

The early signs of this are already evident at Motherson’s Noida experience centre where a slew of wiring harnesses in thick orange cables made for EVs can be seen hanging from the display.

According to the company’s management, while the wiring harness inside ICE vehicles and EVs will remain the same, it would need further insulation in the latter owing to the increased tech features. Since the engine is absent in an EV, the orange cables are required to provide protection against the high-voltage circuits and charging cables.

In ICE cars, even if a person touches an electric wire while opening the bonnet, it won’t cause any harm. This is because the amperage of the wires used in ICE vehicles ranges between 12 amp and 40 amp. In an EV, the same goes up to 200 amp. Hence, Sehgal points out that if someone comes in contact with the wires even by mistake, it could cause a major accident.

Further, the wiring harnesses used in EVs will be bulky as there are more connection systems to handle the high-voltage parts so that errors are reduced to a minimum. And this is why technicians who build EVs, especially those who install valves and test high-voltage components among other things, need to be extra careful.

To be sure, Motherson has rich global experience in handling high-voltage systems. Motherson Rolling Stock Systems GB, a subsidiary of Samil, had in 2019 acquired Canadian-German rolling stock and rail transport manufacturer Bombardier Transportation’s UK assets. These were related to the production and installation of electrical components and systems for applications in the rail industry, comprising manufacturing of wiring harnesses, panels, and electro-mechanical assemblies. In October 2020, it acquired Bombardier’s electrical wiring interconnection systems business in Mexico.

This rolling stock has been running in Europe and the Americas on electrical harnesses and assemblies. The wiring harnesses made by Motherson for the railways are required to be high-voltage tested. This is carried out in a safe and secluded environment by trained personnel.

Meanwhile, in the year 2020, the Motherson group came up with a five-year plan targetting a topline of USD36 billion with one-fourth of the total revenue coming from non-automotive verticals.

Can it meet that target?

The final cut

According to Motilal Oswal, the global auto industry is at the cusp of disruption, led by megatrends in the form of mass adoption of EVs, connected cars, autonomous vehicles, shared mobility, stricter emission norms, and platform and vendor consolidation. These trends have the potential to disrupt the auto supply-chain and challenge the incumbents.

With its diverse product base and market presence, Motherson is set to leverage these trends to drive its next wave of growth. The Mumbai-based brokerage expects the group’s wiring harnesses business to outpace the growth in passenger vehicles, led by an increase in content (due to the ongoing premiumisation and electrification). The business is estimated to clock a compounded growth rate (CAGR) of 18% over FY23-FY25.

“When we made the five-year plan, Covid-19 was nowhere on the horizon,” says Sehgal, adding that Motherson came up with a target based on certain conditions which are valid for five years.

“We never change our targets and will evaluate the outcome after five years. We still think it is feasible, even though we have only two years left in the five-year plan. But the amount of pain, which is there in the system at the moment, gives us a feeling that we might cross our targets,” Sehgal concludes.

14. Don’t see Slowdown in India, Our Fastest-growing Market

ET, 28 Apr. 2023

German engineering major Siemens is recording perhaps its best growth ever in India. The oldest multinational corporation in the country has been aggressively bidding for, and winning, contracts across segments, the latest being one for ₹26,000 crore from the Indian Railways. Roland Busch, Siemens AG’s CEO, told Kalpana Pathak in an interview that the company is firing on all cylinders and that India is its number one growth market. Edited excerpts:

How significant is the India market for Siemens?

We recently did our five-year planning and we looked into the markets and market growth. India is number one in terms of growth. So therefore, we see a lot of momentum in the industrial, mobility, infrastructure and electrification space as India is very serious on driving renewables up. This is where we have a lot of business and local production.

The next thing is about manufacturing. India is attracting more and more manufacturing and higher value products, which require more technology. Then it is digitalisation. Our Indian customers are embracing new technologies, so we have a strong interest in making their production more digital and more automated. Therefore, the growth potential in India is tremendous. And the last few years have been really encouraging. We are firing on all cylinders. This is amazing.

How much will Siemens invest to sustain growth momentum? Will you be setting up new facilities?

Over the past five years, India was growing over 9% and going forward it would be in double digits. We are investing, of course, following the market and following the orders we get. We have more than 30 manufacturing sites, and we want to load them first before we invest in new expansions. But, just to give you an idea, over the last seven years, we invested more than a billion euros, and of the last seven years, three were in this high-growth mode. So, now you can do your own math on what we want to do going forward. But again, if we keep that growth rate, we’d definitely have to add capacities.

Will Siemens be increasing hiring in India?

We’d do it because we are growing. We are growing very fast, and I mean in the Q1, digital industries and smart infrastructure, they grew by 15% in revenue. So, therefore we have a growth momentum, and we need people. We definitely will hire in the mobility space in India. We have to work on our 3 billion euro order backlog. We see a challenge in getting enough people and the right people… In India, we need to train people on new jobs, higher technologies, digitisation technologies. So there’s another challenge, which is the labour market, so to speak, on both dimensions – quantity as well as quality. I’d like to believe India would be on the receiving end when it comes to diversification. If there’s a good manufacturing base, you will see more and more high-value products, more complex products coming into India. And, you need technology and you need educated and trained people, and Siemens can do that.

How is Siemens dealing with high inflation and interest rates?

During the Covid crisis, there was a shortage of supply and a shortage of products. So therefore, our whole market, because it’s in the industrial space, product space, the competitors of Siemens increased prices. We did that a little more carefully than our competitors because we take care of our customers also in difficult times. But the prices went up a bit. And this is due to the high energy prices and the supply chain problems which we had. Still, we had a little bit better delivering capabilities than our competitors, so we were able to capture market share in these difficult times. And going forward, I think the supply chain problems will ease. Therefore, we will see maybe a kind of relaxation. It’s too early to say. Energy crises are still critical, particularly in Europe, but it will be better going forward.

Do you see a recession coming? Will there be layoffs at Siemens?

Talking about 2023, I don't see a recession at all. I mean in Q1, we increased our guidance for the year. So that doesn't look like a recession which is ahead of us. The combination of a huge order backlog and an easing supply chain is giving us such a tailwind that revenue comes, and we are delivering. At the same time, now on a global scale you see a very, very low unemployment rate, which means people are on the shop floor, they earn money, and they can spend money. 2024, I would be a little bit more cautious because again the high inflation rate (means) may be people are having less money to spend and if private consumption goes down then you have an impact. From Siemens’ perspective, I'm also not so concerned because we are in the investment space. People talk about Germany going into recession in 2023, it doesn't look like that. Also, I don't see a recession in India at all.

15. How state governments are supporting startups in India, Government News

ET Gov. 10 May. 2023

The journey from a promising idea to a successful startup is often fraught with challenges, and the role of government policy in supporting these early-stage ventures cannot be overstated.

State governments are often a startup’s first customers and provide them with market access.

India is the third-largest and one of the most promising startup ecosystems in the world, with a vibrant community of entrepreneurs, investors and innovators driving economic growth and job creation. The country has 115 unicorns with a cumulative valuation of over USD 350 billion, according to The India Unicorns and Exits Tech Report 2022. However, the journey from a promising idea to a successful startup is often fraught with challenges, and the role of government policy in supporting these early-stage ventures cannot be overstated.

In recent years, the Union and state governments in India have taken bold steps to create an enabling environment for startups, through a range of policy initiatives and programs aimed at fostering innovation, entrepreneurship and technology adoption. From funding and mentorship to regulatory reforms and incubation support, state governments have adopted certain measures to support startups.

At the national level, the Union government has the Startup India initiative aimed at promoting and supporting entrepreneurship in India. The Startup India Hub, serves as a single point of contact for startups to access information on government schemes and policies and the Startup India Seed Fund and Fund of Funds for Startups (FFS) schemes, which provide seed funding to eligible startups are some measures adopted by the government. Other initiatives include the Atal Innovation Mission, which promotes innovation and entrepreneurship among school and university students, and the Standup India scheme, which provides loans to women entrepreneurs and others from minority communities.

While the Research Park initiative fosters innovation and entrepreneurship at select academic institutions, the National Startup Awards recognise outstanding startups and ecosystem enablers. Through the National Entrepreneurship Awards, exceptional entrepreneurs across various sectors are recognised.

Developing an entrepreneurial mindset

India has a large youth demographic, and the state governments must inculcate an entrepreneurial mindset among the youth. The Entrepreneurship Mindset Curriculum (EMC) launched by the State Council of Educational Research & Training in Delhi aims to nurture and develop leaders with an entrepreneurial mindset. The curriculum empowers students to nurture their own abilities and take control of their career paths, whether it is in employment or entrepreneurship. The curriculum is a part of a larger vision to address the shortage of leaders who can drive innovation and development in India.

In Telangana, the state government is also doing something similar with Telangana Academy for Skill and Knowledge (TASK), which aims to empower students by enhancing their technology, and personal and organisational skills. These skills can be leveraged at incubators such as Atal Incubation Centers, Startup village, Venture Center, Startup Oasis, T-Hub and others to create an innovative ecosystem in India capable of fuelling the development of cutting-edge products and business models for the next generation of entrepreneurs.

Engaging with startups for market access and special projects

State governments are often a startup’s first customers and provide them with market access. In Telangana, the state policy allows startups to enter into bilateral agreements with the government. It permits the state to buy products or services from startups, without going through the tendering process, subject to certain limits. This policy applies to a range of technologies, such as drones, blockchain, artificial intelligence and machine learning, among others.

In Telangana, the Information Technology, Electronics and Communications (ITE&C) department has an emerging tech wing that collaborates with startups to solve government identified problem statements. It includes working with officials to create awareness and conduct pilots that lead to full-scale commercial deployment. For example, the state has engaged startups working on drones to assist the state police with crowd control and surveillance. Similarly, the state has engaged a startup that uses blockchain technology solutions for managing chit funds.

Boosting the startup ecosystem with funding and incentives

State governments in recent years have taken a proactive step towards making funding avenues available for startups. In Telangana, the government has established a network of angel investors and a venture capital fund to offer financial assistance to startups. Several other states, such as Karnataka, Odisha, Kerala, Gujarat and Maharashtra, have also implemented similar measures to encourage innovation and support startups in their states.

Many states also organise annual events that allow startups to exhibit their products and services, as well as interact with mentors and investors.

States like Tamil Nadu, Karnataka, Telangana and Kerala support startups with incentives for revenue growth, the filing of patents and participation in trade shows. Some provide Goods and Service Tax (GST) concessions to startups through fiscal incentives, such as refunds and rebates. These initiatives create a favourable climate for entrepreneurs. Some states have startup awards to recognise successful entrepreneurs.

Several states also have dedicated incubators to encourage entrepreneurship among women, such as the Women Startup Program by Karnataka, She-Box (an initiative by Haryana) and Women Entrepreneurs Hub (WE Hub) by the Government of Telangana. The Union Government also has a similar initiative through the Women Entrepreneurship Platform (WEP).

State governments in India are bridging the gap between policy and practice through their initiatives, thereby creating a vibrant startup ecosystem in India that is conducive to innovation and growth. With continued government support, India's startup landscape is poised for even greater success in the years to come.

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

16. Excited to Build upon Our Long History in India, says Tim Cook

ET, 17 Apr. 2023

Apple chief executive Tim Cook has said the US tech major is “excited” to be building on its over 25-year history in India, where the company is opening its first two retail stores this week, underlining the smartphone major’s growing focus on the South Asian nation.

Apple CEO Tim Cook is also likely to meet PM Narendra Modi during his India trip, reports say.

“At Apple, our mission is to enrich lives and empower people around the world,” Cook said in a statement on Sunday. “India has such a beautiful culture and an incredible energy, and we’re excited to build on our long-standing history — supporting our customers, investing in local communities and working together to build a better future with innovations that serve humanity.”

Apple will open its first company-owned retail store on April 18 in Mumbai and a second in Delhi on April 20.

Cook is widely expected to be in India for the inauguration of the stores this week. He may meet top policymakers, including Prime Minister Narendra Modi, and apprise them of the company’s plans to deepen iPhone manufacturing in India.

“This week, as Apple celebrates more than 25 years in India, the company is marking a major expansion with the opening of its first Apple Store locations in the country, along with new environmental initiatives and a key milestone in the rapidly growing community of Indian developers,” the company said in the statement.

The opening of the stores underlines Apple’s keenness to gain a stronger foothold in India, the world’s second largest smartphone market after China, according to experts.

“The Apple-owned flagship stores are a lynchpin in Apple India’s playbook to win in a strategic growth market,” said Prabhu Ram, head, industry intelligence group, Cybermedia Research (CMR).

He added that the launch of the flagship retail stores comes amid favourable tailwinds for the iPhone maker.

“The premium smartphone segment in India continues to be immune to macroeconomic pressures and has been growing in double digits. Offline retail continues to be key in a large, diverse market like India, where consumers love to touch, feel and explore the products,” said Ram.

As part of a broader move to diversify its supply chain, the Cupertino-based company has been ramping up manufacturing in India for exports as well as the domestic market, which is seeing a rise in demand for premium smartphones.

In the year to March, Apple assembled smartphones worth $7 billion, or around 7% of its iPhones, in India. It exported devices worth over $5 billion, or roughly 5% of its total global exports. In 2021, the company assembled 1% of its smartphones in the country while India’s export share was under 1%, according to industry data, underlining its domestic manufacturing expansion.

2022 was the best year for Apple in India, with iPhone shipments growing 11% on-year, which helped corner its highest ever volume share of 5.5%, said market tracker Cybermedia Research.

Apple began manufacturing iPhones in India in 2017 and currently produces the iPhone SE, iPhone 12, iPhone 13 and iPhone 14 (basic) models in India through its Taiwanese contract manufacturers — Foxconn, Wistron and Pegatron. However, all the Pro models sold in the country are imported.

“Since then (2017), the company has worked with suppliers to assemble iPhone models and produce a growing number of components,” the company said. “Apple’s work with Indian suppliers of all sizes supports hundreds of thousands of jobs.”

All its active Indian manufacturing supply chain partners are committed to a goal to be 100% carbon neutral by 2030, Apple said, adding that it will use 100% recycled cobalt in all Apple-designed batteries.

Foxconn is planning to open two 300-acre manufacturing and assembly units in Karnataka and Telangana, generating over 100,000 jobs over the next 10 years at each of the sites for mainly iPhone production.

Besides manufacturing smartphones, Apple engages thousands of developers for its app store and also operates an iOS App Design and Development Accelerator in Bengaluru. “India’s vibrant community of app developers now supports more than 1 million jobs. A testament to the tremendous growth of developers in India, App Store payouts to developers in the country have more than tripled since 2018,” Apple said.

Since 2017, Apple has hosted more than 15,000 developers at its iOS App Design and Development Accelerator in Bengaluru, enabling them to build on their ideas and bring cutting-edge apps to the market, it said.

17. With STPI support, Jaipur set to become a major hub of IT, ITeS startups: DG Arvind Kumar

ET Gov. 17 Apr. 2023

Jaipur is among the 10 top cities which provide a conducive environment for startups to scale up their operations.

To cater to the growing needs of the IT and ITeS startups in Rajasthan, STPI Jaipur has created a state of the art incubation center of 20,000 square feet. This facility provides services like incubation, statutory assistance, office space and value added services like data-com, co-location services, PMC and other benefits. In conversation with ETGovernment, Arvind Kumar, Director General, Software Technology Parks of India (STPI) shares the details of the benefits that startups can expect from the new incubation facility.

Edited excerpts:

Union Minister for Communications and Electronics & IT Ashwini Vaishnaw inaugurated an incubation center at STPI Jaipur. What kind of benefits can be expected for startups from this incubation center?

We have created a 20,000 square feet incubation facility at STPI Jaipur to primarily cater to the needs of small and medium scale entrepreneurs in the IT and ITeS sectors. We already had a small incubation facility of around 4,000 sq ft in Jaipur. After the inauguration of the new incubation facility, the scope of the incubation center has become much bigger. In this facility, we will provide space to a number of startups to operate on a plug and play model. There will also be space for conducting original research and development. The IT and ITeS sectors in Rajasthan will receive a big boost with the coming up of this incubation facility.

What kind of benefits can the startups in Rajasthan expect from this incubation center?

Any young entrepreneur or innovator who wants to establish a new startup will get a lot of handholding from us. The entrepreneurs can use the incubation facility to develop their ideas into products and services which can be commercialized. The facility in Jaipur STPI is state of the art. It has high-speed data connection and all other facilities which most new startups require. It also has a single window clearance system. To cite an example, if your startup is engaged in exporting its products and services then we will provide them with softex certificate. You will have access to good conference rooms for connecting with investors and mentors.

Why did you choose Jaipur to offer these services?

There are 12 centers of the next-generation incubation scheme from where we provide Rs 25 lakh as seed funds to the startup. Jaipur is one of these 12 tier-two cities and this city is very important for the startup ecosystem in the country. A recent study says that Jaipur is in a strong position to become one of the major hubs for IT and ITeS startups in the country. It is already quite ahead in terms of startups in these areas. Jaipur is among the 10 top cities which provide a conducive environment for startups to scale up their operations.

The Rajasthan government is already running a facility like iStart for startups. What new facilities are you offering to the startups?

There are multiple facilities being offered by the Rajasthan government. Every facility has some unique benefits. The iStart facility that you mention provides only incubation but we are also providing the seed fund to promising startups. iStart startups get exposure within their state, but with the STPI facility the startups get exposure throughout the country. The scope of our system is much bigger, since it is at the national level. There is a lot of opportunity for the startups to grow with us. They can avail of incubation, seed fund, and in some cases loans are also available for them. There are schemes under which the startups can avail of grants. If the product or service that the startup is creating involves work on a laptop, then they can do it even from home, but if their business requires some lab work, then they can choose our facility. We are quite hopeful that within six months the new incubation space that we have created in Jaipur STPI will be occupied with startups. We are already seeing a lot of interest.

Do you believe that the incubation model that STPI is establishing in Jaipur will lead to improvement in the software exports from Rajasthan?

Consider Bangalore – this city occupies pole position on software exports because they have adopted the right policies. If a startup wants to export software then they need a softex certificate, which allows them to avail foreign remittances for their product. We are going to open a single window clearance system for hand holding those who want to export software from Jaipur. The kind of facilities which entities that are into software export get in Bangalore, they should also be able to get in Jaipur. STPI is creating a complete ecosystem–we provide softex certification, affordable office space, and hand holding facilities.

How will your service help startups in specific domains like fintech?

We have a domain-specific center for entrepreneurship across the country. Fintech and Retailtech are becoming very big in Rajasthan. We have an exclusive Center for Entrepreneurship in Chennai called Fin Blue. When a startup working in the area of fintech is incubated in Jaipur, it is automatically connected to the Chennai facility. If the startup wants to test its fintech product, it can use the Chennai facility.

Are you providing international exposure to the startups being incubated in your facilities?

Recently we took some Indian startups to the USA. There the leaders of these startups were introduced to investors and technocrats. Both sides were excited to meet each other. Out of 33 startups that we took to the USA, 8 startups managed to sign MoUs.

18. Domestic passengers traffic of January-March, 2023 shows 51.70% annual growth

Press Information Bureau, Apr. 20, 2023

According to the Directorate General of Civil Aviation's Traffic Report for March, 2023, domestic airlines carried 375.04 lakh passengers from January-March, 2023, as compared to 247.23 lakh passengers during the same period in the previous year, representing a growth of 51.70% annually and 21.41% monthly.

The passengers’ complaints have decreased in March, 2023 (347 complaints) as against March, 2019 (1,684 complaints). Moreover, in March, 2023, an increase in the Passenger Load Factor (PLF) was witnessed by Vistara, Air India, Air Asia, and Star Air as against March, 2019.

According to the report, Indigo, Vistara, and Air Asia increased their market share from March, 2019 to March, 2023.

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

19. Hotel Cos Go Big on Leisure & Pilgrim Towns as Travel Booms

ET, 26 Apr. 2023

Improving domestic leisure travel has prompted hotel chains to expand room inventory over the past few years. A major noticeable trend is that hotel companies are expanding in tier-II and smaller towns faster than the metro regions.

The share of hotel rooms in the tier-II and tier-III cities increased to 38% of the total inventory at the end of 2022 from 33% four years ago according to a recent HVS-Anarock report.

The share of hotel rooms in metros reduced to 19% from 30% during the period.

Cities such as Agra, Haridwar, Manali, McLeod Ganj, Kasauli, Katra, Mahabaleshwar, Puri, Pushkar, Rishikesh, Tirupati and Vrindavan reported the opening of new hotels in the mid-market and upscale segments.

Travel trends such as weekend getaways, road trips, staycations (vacation close to home), workation (leisure trip in which work is an add-on) and bleisure (a business trip which gets extended to a leisure trip) have boosted leisure travel in the past two years. This is also reflected in the rising trend in air travel, which grew by 60% year-on-year in FY23.

The rising travel to smaller cities is likely to benefit listed hotels such as Indian Hotels and Lemon Tree Hotels, which have a fairly strong presence in mid-market and upscale segments.

20. National Technology Week highlights India’s technological advancement and innovation

ET Gov. 15 May, 2023

The National Technology Week, which was held under the theme ‘School to Startup - igniting young minds to innovate’ from May 11 to 14 at Pragati Maidan, New Delhi, concluded on Sunday.

Prime Minister Narendra Modi listens to a student explaining his invention during the National Technology Week, which concluded at Pragati Maidan, New Delhi, on Sunday. (PIB photo)

The National Technology Week, which was held under the theme ‘School to Startup - igniting young minds to innovate’ from May 11 to 14 at Pragati Maidan, New Delhi, concluded on Sunday.

The event was inaugurated by Prime Minister Narendra Modi who highlighted the importance of supporting and nurturing young scientists in the country. The Prime Minister informed the audience that over 10,000 ATAL tinkering labs in 700 districts have become innovation nurseries, with 60 percent of these labs in government and rural schools. More than 75 lakh students are working on over 12 lakh innovation projects in Atal Tinkering Lab, which is a testament to young scientists emerging from schools and reaching the remotest corners of the country. The Prime Minister emphasized the importance of nurturing young talent and supporting them in implementing their ideas, noting that hundreds of startups have been incubated at Atal Incubation Centres (AIC). He hoped that the Tinker-preneurs of India will soon become leading entrepreneurs of the world.

According to NITI Aayog, the exhibition saw a participation of more that 5,000 school students, 1,500+ other visitors, 800 exhibitors, 200+ student exhibitors, and 100+ startups from various sectors showcasing their innovations and products. The event aimed to promote and recognize the contribution of technology in India’s progress and development. Under AIM Pavilion, 75 exhibitors from AIM participated, including 40 exhibitors from school innovations of Atal Tinkering Labs, from 21 states across the country, and 35 Startups from across the country that have been incubated under Atal Incubation Centers.

The Prime Minister interacted with students of the Atal Tinkering Labs, and encouraged young minds to innovate and contribute to the nation’s progress. The PM also inaugurated the AIM Pavilion, which showcased innovations from different sectors of the innovation lifecycle. Additionally, the event included 10+ technical sessions by different ministries/ departments, including special sessions conducted between startups and Atal Tinkering Lab students. These special sessions carried the idea for technopreneurs to become entrepreneurs.

Stating that the event was a huge success, Dr Chintan Vaishnav, Mission Director of Atal Innovation Mission, said it provided a platform for innovators, entrepreneurs, and investors to interact and exchange ideas. The event also highlighted the government’s initiatives, such as Start-up India, Stand-up India, and Make in India, which have fostered a culture of innovation and entrepreneurship in the country, he added.

To mark the 25th anniversary of these landmark events, Technology Development Board and Atal Innovation Mission (AIM) NITI Aayog, along with Department of Science and Technology, Ministry of Earth Sciences, Defence Research and Development Organisation – Ministry of Defence, Council of Scientific and Industrial Research (CSIR), Department of Biotechnology, Department of Atomic Energy, Ministry of Electronics and Information Technology, Department of Telecommunications, Ministry of Education, Indian Space Research Organisation and Department for Promotion of Industry and Internal Trade (DPIIT) organized National Technology Week, 2023 with a primary focus on Atal Innovation Mission programs and showcasing innovations from different sectors of the innovation lifecycle.

India and the World

21. PIB India cluster will visit Hyderabad and Delhi in new trade mission next week

Fruitnet Daily news, 21 Apr. 2023

The visit builds on an earlier trade mission to Karnataka and Maharashtra

HortiRoad2India, the Dutch public-private partnership, will visit Hyderabad and Delhi next week as part of a trade mission to India.

The Partners In Business (PIB) initiative aims to establish the Dutch horticultural industry as a reliable partner for India’s growing demand for healthy, fresh produce. The trade mission will focus on the opportunities of the growing market demand for safe and healthy fruits and vegetables within metropoles.

The visit to Hyderabad and Delhi from 23-30 April follows an earlier mission to the Indian states of Karnataka and Maharashtra in November 2022, which resulted in proposals for sustainable projects, recognising the need for Dutch knowledge and integrated solutions to support India’s changing food production practices.

Desh Ramnath, cluster coordinator PIB HortiRoad2India said: “Dutch technology is able to empower the fresh produce value chain to grow clean, safe, and residue-free produce. We believe that by combining the strengths of the Indian market with Dutch greenhouse technology, we can revolutionise the way fresh produce is grown, delivered and consumed.

“We look forward to taking this next step in transforming the Indian horticultural ecosystem.”

During the six-day visit the Dutch cluster of turnkey suppliers and specialised companies will meet with investors, project developers, and retailers. A public and private programme will be compiled with visits to greenhouse projects and practical training centres. This will be followed by knowledge sessions, in-depth matchmaking sessions and network receptions.

The Embassy of the Kingdom of the Netherlands is inviting Indian investors, project developers, entrepreneurs and directors in retail and hospitality to interact with the leading Dutch companies in horticulture.

The companies taking part in the mission are: Bayer-De Ruiter Seeds, Broekman Logistics, Hoogendoorn Growth Management, Lumiforte, Koppert, Meteor Systems, Priva, Ridder, Van der Hoeven Horticultural Projects, and Viscon Group. The mission will be organized by Dutch Greenhouse Delta, InnovationQuarter, the Netherlands Embassy in India, and Rotterdam Partners.

Those interested taking part in knowledge and matchmaking sessions on 25 April at Taj Krishna, Banjara Hills Main Rd, Hyderabad, and 27 April at The Lalit, Fire Brigade Lane, Barakhamba, New Delhi should contact coordinating partner Grand Thornton at ashish.kumar3@in.gt.com

22. India trade: US emerges as India's biggest trading partner in FY23 at $128.55 bn; China at second position

ET, 22 Apr. 2023

According to provisional data of the commerce ministry, the bilateral trade between India and the US has increased by 7.65 per cent to USD 128.55 in 2022-23 as against USD 119.5 billion in 2021-22. It was USD 80.51 billion in 2020-21. On the other hand, during 2022-23, India's two-way commerce with China declined by about 1.5 per cent to USD 113.83 billion as against USD 115.42 billion in 2021-22.

The US has emerged as India's biggest trading partner in 2022-23 on account of increasing economic ties between the two countries. According to the provisional data of the commerce ministry, the bilateral trade between India and the US has increased by 7.65 per cent to USD 128.55 in 2022-23 as against USD 119.5 billion in 2021-22. It was USD 80.51 billion in 2020-21.

Exports to the US rose by 2.81 per cent to USD 78.31 billion in 2022-23 as against USD 76.18 billion in 2021-22, while imports grew by about 16 per cent to USD 50.24 billion, the data showed.

On the other hand, during 2022-23, India's two-way commerce with China declined by about 1.5 per cent to USD 113.83 billion as against USD 115.42 billion in 2021-22.

Exports to China dipped by about 28 per cent to USD 15.32 billion in 2022-23, while imports rose by 4.16 per cent to USD 98.51 billion in the last fiscal. Trade gap widened to USD 83.2 billion in the last fiscal as against USD 72.91 billion in 2021-22.

Experts believe that the trend of increasing bilateral trade with the US will continue in the coming years also as New Delhi and Washington are engaged in further strengthening the economic ties.

Federation of Indian Export Organisations (FIEO) President A Sakthivel said that increasing exports of goods such as pharmaceutical, engineering and gems and jewellery is helping India to push its shipments to America.

"The trend of increasing trade with the US will continue in the coming months also," he said.

FIEO Vice President Khalid Khan said India is emerging as a trusted trading partner and global firms are reducing their dependence only on China for their supplies and are diversifying business into other countries like India.

"The bilateral trade between India and the US will continue to grow as our exporters are getting good orders from that country," Khan said.

Rakesh Mohan Joshi, Director of the Indian Institute of Plantation Management (IIPM), Bangalore, too said that India provides huge trade opportunities for the US as India is the world's third largest consumer market and the fastest growing market economy.

"Major export items from India to the US include petroleum, polished diamonds, pharmaceutical products, jewellery, light oils and petroleum, frozen shrimp, made ups etc. whereas major imports from the US include petroleum, rough diamonds, liquified natural gas, gold, coal, waste and scrap, almonds etc," Joshi said.

America is one of the few countries with which India has a trade surplus. In 2022-23, India had a trade surplus of USD 28 billion with the US.

The data showed that China was India's top trading partner since 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner.

In 2022-23, the UAE with USD 76.16 billion, was the third largest trading partner of India. It was followed by Saudi Arabia (USD 52.72 billion), and Singapore (USD 35.55 billion).

23. Atos’ Eviden to Drive Key Innovation Out of India

ET, 23 Apr. 2023

India will be an important innovation and research hub for Eviden, the soon to be spun-off subsidiary of French tech major Atos, said Philippe Oliva, CEO, Eviden, and Group Co-CEO, Atos Group. Oliva, who took charge of the newly formed unit in mid-2022 was in India to launch two new Cloud delivery centres in in Bengaluru and Pune.

India, he said, would drive a large part of the R&D around the supercomputers and hardware, bringing in more sustainability around areas like water and air cooling of the Atos supercomputers.

Last year, the French company said it would be spining off its digital, big data, security and consulting business into a new subsidiary, Eviden, accounting for about €5 billion of the combined €11 billion business. The new brand was launched a few days ago, and the separation process will be completed later this year, it said.

Oliva, who heads this new business said the company would continue to invest and hire in India. “We are investing in India to have the best innovative skills and provide key innovations that matter to our clients,” said Oliva. “In Eviden, the core value will be around digital security, digital transformation, and cloud strategy, and I am relying heavily on our Indian team to build up that momentum,” he said. The launch of the cloud migration and operation s centres is part of the strategy to do more work out of India. These centres would cater to the company’s customers across Europe and North America, where it is seeing more companies investing in digital transformation projects and moving to the cloud. The company would also double down on its plans to grow its customer base in India, investing in its go to market capabilities, starting with sectors where it has a strong global presence like defence, energy, and public sector firms. Atos is a key partner on the government of India’s National Supercomputing Mission, and Oliva said that they continued to work closely on the next set of initiatives under the project.

India would also play an important role in driving research around supercomputing for Atos. The team is working on the motherboard of the high-performance computers as well as creating more sustainable solutions. The teams are in charge of everything related to water cooling and air cooling of our computers, so they are at the heart of the energy efficiency and engineering needed to ensure the highest level of sustainable commitment, he said.

At present, the Atos group has about 40,000 people in India. Oliva said they would continue to hire both fresh graduates as well as senior skills in areas like artificial intelligence, application development, security and cloud operations and applications. “That is part of the massive investment we’re making to ensure that we can continuously fuel the growth we have and also attract new talent.”

24. Walmart Hopes to be a Part of Indian Economy for Decades

ET, 11 May, 2023

Walmart chief executive Doug McMillon said India has a very bright future and that his company, the world’s largest retailer, is “hoping to be a part of this economy for decades and decades”.

“There's going to be a lot of growth here and I think it's going to be inclusive growth,” McMillon said, while addressing the Indian suppliers and partners across Walmart and its units Flipkart, PhonePe, Walmart Global Tech and Walmart Sourcing on Tuesday in Bengaluru.

About 20 years ago, McMillon’s responsibility was in merchandising and at that time India was considered to be a great opportunity from a sourcing point of view for Walmart’s other markets, within a very narrow set of categories.

“To be here today and to understand that India has these opportunities across so many categories is really exciting to me,” McMillon said.

What happens in India in the next 20 years is going to be remarkable, he said.

Walmart is building an ecosystem of suppliers and partners, including small and medium enterprises, to meet the company’s goal of sourcing $10 billion of India-made goods by 2027, he said.

“Walmart is committed to India and we are here for the long term. We are excited about the Indian suppliers and partners who make quality, affordable, and sustainable products for our customers and members around the world. We are proud that our business can support India’s growth by creating jobs, strengthening communities, and accelerating India’s progress as a manufacturing destination,” McMillon said.

Walmart’s leadership met a cross-section of suppliers, merchants, grantees, artisans and MSMEs across its key India programmes and initiatives.

Walmart International chief executive Judith McKenna said the entrepreneurial and innovative spirit in India is more exciting than anywhere else around the world.

“This is a country that is forecasted to be the world's third largest economy by 2030, which is extraordinary. But what we see is much more than that,” McKenna said.

The entrepreneurial and innovative spirit is all about opportunity, she said.

25. Kolkata metro trial run under Hooghly river successful, PM says 'encouraging trend' for public transport

ET Gov. 17 Apr. 2023

The metro is expected to cover a 520-meter stretch under Hooghly river in 45 seconds.

A graphical presentation of the underwater trial run of Kolkata Metro Rail.

Prime Minister Narendra Modi on Saturday expressed happiness over metro trial run under Hooghly river in Kolkata. In response to a tweet by Union Minister for Railways Ashwini Vaishnaw, the Prime Minister tweeted:

“Great news for Kolkata and an encouraging trend for public transport in India.”

Immediately after the trial run Friday, Vaishnaw announced, "Train travels underwater!"

He said trial run of train through water is another engineering marvel; metro rail tunnel and station under Hooghly river.

Kolkata Metro on Wednesday created history with its maiden run through the tunnel under Hooghly river.

For the first time in India, the metro undertook an under-river journey. Metro Rail general manager P. Uday Kumar Reddy travelled from Mahakaran to Howrah Maidan station in rake no MR-612 to witness this historic event.

This rake crossed Hooghly river at 11:55am.

The trial runs were conducted on the 4.8-km underground section from Howrah Maidan to Esplanade.

Commercial services on this stretch are expected later this year. Once this stretch is open, Howrah will be the deepest metro station (33 meters below the surface) of the country. The metro is expected to cover a 520-meter stretch under Hooghly river in 45 seconds. This tunnel under the river is 32 meters below the river bed.

* * *

AAPI

Pages

Tuesday 16 May 2023

NEWSLETTER, 20-V-2023

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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

NEWSLETTER, MAY 2023

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- General policy, Infrastructures, Country Finances, etc.

- Agriculture, Fishing and Rural Development

- Industry and Manufacture

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

India and the World