AAPI: 2024

DELHI, December 2024

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. US returns looted antiquities worth $10 million to India
22. UPI Adoption In India: 'India's success with UPI offers replicable model for other nations'
23. Indo-US workshop on 6G technologies at IIT Delhi to asses current status of 6G development in India
24. Global Airlines Expect Record Passenger Flows in 2025
25. India Renewable Energy Capacity Growth: India’s renewable energy capacity logs 14.2% growth at 213.7 GW

* * *

DELHI, December 2024

NEWSLETTER, December 2024

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1. 531.5 million bank accounts have been opened under the Pradhan Mantri Jan Dhan Yojana: Report

ET Gov. IANS, 12 Dec. 2024

Over 531.5 million bank accounts have been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), contributing to the foundation of India's financial inclusion journey.

The Inclusive Finance India Report 2024 was launched today (December 11), at the Global Inclusive Finance Summit 2024, hosted at Hotel Ashok, New Delhi. The event witnessed participation from global policymakers, financial leaders, and innovators to discuss strategies for achieving equitable growth through financial inclusion.

Organized by ACCESS Development Services, during the two-day event the organisation released the much-anticipated report, with key highlights presented in the Inaugural Session. The summit serves as a platform to explore India’s transformative financial inclusion journey and its impact on empowering underserved communities worldwide.

Moreover, the event also witnessed the 16th Inclusive Finance Awards which recognized groundbreaking initiatives of individuals and institutions championing financial inclusion across the globe.

Some highlights from the report are as follows:

In October 2024, UPI processed 16.58 billion transactions worth ₹23.50 trillion, showcasing its role as a cornerstone of India's digital payment ecosystem and financial inclusion efforts.

Over 531.5 million bank accounts have been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), contributing to the foundation of India's financial inclusion journey.

Women-led Self-Help Groups (SHGs) constitute 58% of total SHGs, demonstrating the transformative role of women in driving financial empowerment.

Climate finance initiatives such as Pay-As-You-Go solar systems and green bonds mobilized $15 billion by 2024, helping farmers build resilience and adopt sustainable practices.

AI-driven platforms like Credit Vidyaa and SBI YONO are extending credit access to underserved populations, including farmers and gig workers, through alternative credit scoring and data analytics.

Microfinance added 18.1 million new clients in FY 2024, resulting in a 26% growth in the loan portfolio. The total active loan accounts reached 161 million.

MSMEs contribute 30% to India's GDP and employ over 22.94 million people, yet face a credit gap of ₹20-25 lakh crore.

Women-led MSMEs make up 20.5% of total registered MSMEs, but they face a $158 billion financing gap due to systemic barriers like unequal asset ownership and higher interest rates.

Women entrepreneurs benefited significantly from schemes like Mudra Yojana, with 71% of loans directed toward female borrowers.

DPI climbed to 445.50 in 2024, reflecting the widespread adoption of digital financial services.

Vipin Sharma, CEO of ACCESS Development Services, expressed the significance of the summit: “The Global Inclusive Finance Summit 2024 is an opportunity to not only share on India’s incredible progress but to set a vision for the future of inclusive finance. By bringing together global thought leaders and experts, we aim to chart a course that enhances financial access for all, especially those who have been historically marginalized.”

The Global Inclusive Finance Summit 2024 is an influential annual event that unites global leaders and stakeholders to explore and advance financial inclusion as a vital tool for shared prosperity. This year’s summit highlighted India’s extraordinary achievements in financial inclusion over the past decade setting an example to the world regarding finance inclusion.

With over 100 speakers and representation from all over the globe, the Summit featured expert panels, interactive workshops, exhibitions of cutting-edge innovations, and actionable discussions that align with global sustainable development goals.

2. Natural or Lab Diamonds? New Rules on Cards to Offer Clarity

ET, 20 Nov. 2024, Reuters

The government is looking to draft guidelines for diamonds specifying definitions for natural and lab grown stones, said the ministry of consumers affairs in a statement on Tuesday.

The proposed guidelines will have explicit labelling and certification of all diamonds, specifying their origin and production method and have clauses for prohibition of misleading terms like “natural” or “genuine” for lab-grown products.

The proposed guidelines will also develop an accreditation system to regulate and standardise diamond testing laboratories, curbing the rise of unregulated entities.

The Central Consumer Protection Authority (CCPA), which operates under the ministry of consumer affairs, had organised a stakeholder consultation with representatives of the diamond industry to discuss the use of appropriate terminology for diamonds chaired by Nidhi Khare, chief commissioner, CCPA, the statement added.

“There has been a meeting between DGFT (Directorate General of Foreign Trade), consumer affairs ministry and Union commerce ministry on natural and lab-grown diamonds industry. Both the natural diamond committee and lab-grown diamond committee are working towards measures so the interest of both the sectors are not impacted and consumers are not duped,” said Kirit Bhansali, vice-chairman of Gem & Jewellery Export Promotion Council (GJEPC), adding that even though lab-grown diamonds has similar carbon content like natural diamonds and are environmental friendly, it has to be clearly stated that it is synthetic and are not mined naturally.

While a carat of lab-grown diamond costs about ₹65,000-₹80,000, the price of a carat of natural diamonds is ₹4-₹4.5 lakh. At present, section 12 of the Legal Metrology Act, 2009, provides the unit of mass for diamonds, pearls, and precious stones as the carat, equivalent to 200 milligrams or one five-thousandth of a kilogram, ensuring standardised measurements for consistency in commercial transactions across the diamond industry.

The Bureau of Indian Standards (BIS) Standard IS 15766:2007 mandates that the term “diamond” alone must exclusively refer to natural diamonds. Synthetic diamonds cannot be labelled “diamond” without qualification and must be explicitly referred to as “synthetic diamonds,” irrespective of the production method or material used.

To maintain market clarity, synthetic diamonds are also prohibited from being graded alongside natural diamonds. The Central Board of Indirect Taxes and Customs (CBIC) reinforced these measures, by Circular No. 21/2024, dated October 30, 2024, mandating the explicit declaration of whether a diamond is natural or lab-grown, and if lab-grown, the production method—chemical vapor deposition (CVD), high pressure high temperature (HPHT), or others—must be specified to ensure transparency and accountability in the diamond sector.

3. India Needs Focus on Small Farmers for Viksit Bharat, Says PK Mishra

ET, 3 Dec. 2024

India needs a greater focus on farmers with small land holdings and formulate a strategy to increase their income in order to realise the goal of a Viksit Bharat, or a developed nation by 2047, said PK Mishra, Principal Secretary to the Prime Minister, while delivering the 19th CD Deshmukh Memorial Lecture here.

During the last decade, governments—both at the Central and state levels—have taken initiatives to assist small farmers, including small and marginal farmers, he said at the lecture hosted by the Reserve Bank of India (RBI) on November 28.

Speaking on the topic ‘Transforming Small-holder Agriculture in India in the 21st Century: Challenges and Strategies’, he said the issue of smallholder agriculture needs to be addressed in order to realise our goal of a Viksit Bharat or a developed India by 2047.

Mishra said several measures such as crop diversification, use of technology, climate-resilient crop varieties, storage to reduce post-harvest losses, direct farmer-consumer platforms, rural industrialisation and setting up of farmer producer organisations have been attempted.

“Our analysis reveals that there is a need to have greater focus on small-holders and formulate a strategy to increase their income,” Mishra said.

In this regard, he suggested diversification towards more profitable crops, livestock and fisheries; use of technology, especially focusing on small farms, among others.

He said India’s agriculture is dominated by small-holders and will continue to be so in the near future. There are 168 million operational holdings, of which small holdings of less than 2 hectares contribute to 88%.

4. Viewpoint: The Growth Conundrum

09 Dec.2024 | MEDC

There is a pressing need to pull all domestic levers for our economic growth. The global economy is undergoing a massive transition, and if we fail to change, we risk missing the bus. Our economic ambitions are admirable, but we need to be mindful of the “middle income trap”. This essentially states that economic growth in developing countries tends to level off during the middle-income stage (unless some special policy precautions are taken to gain and maintain the momentum). Sustaining economic growth today has become particularly tricky all over the world – given aging populations, rising geopolitical and trade risks, and the need to expedite development without environmental degradation.

India is not short of ideas, innovators or savings. What we lack is a socioeconomic system that could turn ideas into new technologies to drive sustainable growth. Policy needs to find ways to make the system more business-friendly and enable the profitable channelization of domestic savings into the scaling up of innovation. India needs to refocus, rethink its national priorities, identify the key blockages in its financing and technological architecture, and zero in on more practical and workable solutions yielding the highest returns. This approach will particularly benefit our MSME sector, which constitutes the backbone of our economy, both in terms of its contribution to value addition and employment generation.

As far as manufacturing goes, we need to acknowledge the current supremacy of China. Any denial on this front will only be counterproductive. We need to first integrate China into our supply chains, before we think of integrating ourselves effectively into global value chains. Historically, countries which have increased their exports to the USA have simultaneously seen their imports from China increase. This is a fact we must accept. Now that India is not re-considering joining the mega trade agreement of RCEP (initiated by China), our options of commercial engagement with the vast East Asian market are limited. At the same time, we cannot afford to decouple ourselves entirely from that influential region.

India’s areas of potential growth include green energy, defence, affordable housing, healthcare services, education, manufacturing, infrastructure development, consumer technologies, and retail financial services. Rising socioeconomic aspirations throughout the country mean that all of them have a bright future. But the way to realize them is through the development of a strategy focused mainly on attracting the right kind of investment. That will necessitate a further streamlining and rationalization of our fiscal system.

With the advent of AI and the disruptive effect it is likely to have on economies worldwide, India’s growth strategies need to be better planned. More women should be brought into the workforce by expanding their educational and economic opportunities. The payoff could be immense if this is done successfully. It will also help to enhance our image overseas. India cannot be expected to immediately eliminate the use of all fossil fuels in fulfilling its growth aspirations. But policy should find a way to make our economy more energy-efficient and reduce industrial emissions. By sticking to the old approach, we risk economic stagnation.

5. PLI scheme: Fueling innovation, entrepreneurship to transform India into a global manufacturing hub

ET Gov. 3 Dec. 2024

The government's commitment to strengthening domestic manufacturing and job creation is evident in the enhanced expected allocation of ₹14,167.1 crore for the PLI scheme in FY25.

With the nation's GDP projected to hit an impressive $5 trillion by 2025, India is steadily leading its way to becoming a global manufacturing hub.

Even industry experts are dubbing the current period as India's "prime era" of industrial growth, fueled by a remarkable surge in the sector. Currently holding a 2.7% share in global manufacturing, the nation recognises the need for strategic momentum to expand its footprint. In response, government initiatives are zeroing in on high-potential sectors, paving the way for a dynamic phase of progress.

A standout effort is the Production-Linked Incentive (PLI) scheme, designed to boost domestic production while reducing import dependency. Launched in 2020, the initiative aims to bolster India's self-reliance and global competitiveness by providing financial incentives to eligible companies.

PLI Keeping Businesses Ahead

The PLI scheme is more than a single-focused initiative—it enhances the entire manufacturing ecosystem. Over the past decade, the industry has comprehended and overcome challenges such as regulatory hurdles, infrastructure gaps, and limited foreign direct investment (FDI).

This becomes possible by adopting emerging trends like smart manufacturing, where automation, robotics, and digital technologies reshaped traditional processes and opened the gate for global competitiveness. Here, the PLI scheme has further created a fertile ground for global investments, evidenced by an impressive 69% growth in FDI, now amounting to US$ 165.1 billion.

This surge reflects growing trust in India's potential to deliver on its manufacturing ambitions. Beyond economic metrics, the industry has always been a key driver of job creation and skill development. The PLI scheme takes this further by encouraging companies to increase production and set up facilities, even in less industrialised areas.

This creates demand for skilled and unskilled labor, diversifying job opportunities beyond metropolitan areas. Further, it reduces regional unemployment disparities, creating over 8.5 lakh direct and indirect jobs.

From Importer to Exporter

India is determined to cement its position as a crucial player in global supply chains by continuously improving its physical and digital manufacturing infrastructure. PLI schemes drive investments in advanced technologies and expanding production capacities by linking incentives to incremental production beyond a specified base year.

This strategic approach motivates businesses to scale their operations, enhancing local supply networks while seamlessly integrating them into global demand dynamics.

Additionally, the scheme focuses on industries with significant global potential, such as electronics, where India is now poised to transition from being an importer to an exporter. This emphasis reduces dependency on external sources while creating a robust export surplus in high-value segments.

Eventually, this creates a ripple effect as large enterprises leverage the capabilities of micro, small, and medium enterprises (MSMEs) for critical inputs, elevating these smaller entities to compete on international platforms. Focusing on export-oriented production, the PLI scheme enables Indian manufacturers to align with global standards. This strengthens India's reputation as a dependable trade partner and sets the stage for achieving the ambitious $2 trillion export milestone.

Impact on Potential Sectors

Since its launch, the PLI Scheme has made impressive progress across various sectors. Initially focused on three key industries—electronics, automobiles, and pharmaceuticals—the scheme has delivered measurable impacts.

Global electronics industry leaders have ramped up manufacturing operations in India, with exports witnessing significant growth. For instance, India's smartphone exports surged by 42% in FY24, reaching US$ 15.6 billion, underscoring the country's emergence as a major player in the global electronics supply chain.

Similarly, the scheme focuses on electric vehicles (EVs) and advanced automotive technology (AAT) products in the automobile sector, backed by the budgetary outlay of ₹ 25,938 crore. Its primary goal is to encourage deep localisation of AAT products while fostering domestic and global supply chain development. Moreover, in pharmaceuticals, the emphasis on high-value drugs and active pharmaceutical ingredients (APIs), with an outlay of US$ 2 billion, fostering expansion in this critical sector.

Fast forward to August 2023, the scheme has grown to encompass 14 high-potential sectors, supported by an outlay of more than US$ 26 billion. This includes the food processing sector, with an allocation of ₹109 billion, aimed at leveraging agricultural resources and enabling competitiveness against low-cost global players. This substantial backing has set the stage for sustained growth, enhancing India's manufacturing capabilities and solidifying its position in global supply chains.

Manufacturing the Future

The government's commitment to strengthening domestic manufacturing and job creation is evident in the enhanced expected allocation of ₹14,167.1 crore for the PLI scheme in FY25. Extended to include labor-intensive industries and MSMEs, the program aims to position India as a global manufacturing leader.

With further focus on chemicals, green energy, and auto parts, the initiative aligns with broader industrial strategies to foster innovation, drive economic growth, and create sustainable employment opportunities, paving the way for inclusive development and manufacturing excellence.

(The author is Founder & CEO of ProcMart; Views are personal

- Agriculture, Fishing and Rural Development

6. Agritech boom in Digital India: 19 soonicorns, 40 minicorns embracing emerging tech for biz growth: RBI Report

ET Gov. 26 Nov. 2024

The sustainability of agri-techs is directly proportional to the adoption of modern technologies by the farmers.

The Indian agritech landscape has significant growth potential to emerge as an institutional innovation for bridging the technological gap and the country currently has 19 agritech soonicorns and 40 minicorns, that are embracing emerging technologies like AI and developing innovative business models, according to a new RBI paper.

Although only a single unicorn is identified in the Indian agri-tech landscape, the total number of agri-tech soonicorns (ready to become unicorns) and minicorns is estimated at 19 and 40, respectively, said the paper titled 'Agri-Tech Startups and Innovations in Indian Agriculture' by D Suganthi, Jobin Sebastian and Monika Sethi.

A survey of agri-tech startups shows that they benefit from government's funding support, research and development and state support in the form of digital infrastructure.

India's agri-tech ecosystem witnessed a huge surge in investor interest, with investments increasing from $370 million in 2019 to $1.25 billion in 2021.

The investor interest moderated thereafter, mirroring global trends.

Global funding to agri-techs reached a peak of $10.9 billion in 2021 and 2022, thereafter moderated sharply to $5.2 billion in 2023.

"As regards the share of agri-tech companies by funding, the US holds the highest share (43.2 per cent), followed by China (14.4 per cent), Canada (12 per cent) and India (8.5 per cent). The Indian agri-tech ecosystem has, thus, garnered a significant share of global funding," the paper said.

The central government promotes agripreneurship and innovation through initiatives that reduce regulatory barriers, develop innovation-driven infrastructure facilities, and promote active collaboration among entrepreneurs.

"It plays a significant role in building a robust ecosystem for nurturing innovation and facilitating agri-tech mainstreaming by developing agri-stack," the paper stressed.

Emerging technologies such as the Internet of Things (IoT), big data analytics, artificial intelligence (AI), blockchain, remote sensing, biotechnology, drones, robotics and automation are being employed by several startups.

The policy support rendered by the government in the form of 'Digital India', 'Make in India', startup funds and accelerator and incubator-support initiatives, further accentuated by opportunities generated during the pandemic, have been essential facilitators of agri-tech startups' growth.

According to the paper, despite the progress made so far, agri-techs in India face challenges in scaling up their operations. The sustainability of agri-techs is directly proportional to the adoption of modern technologies by the farmers.

"The lack of adequate funding, fragmented land holdings and longer time to revenue matrix are the major factors hindering their growth prospects," it added.

7. ADB Loan Horticulture: ADB commits $98 million loan to promote plant health management in horticulture farming

ET Gov. 2 Dec. 2024

The plant health management promoted through the project will also help farmers adapt to climate change, as rising temperatures not only cause extreme weather events but also affect pest and disease behavior.

The Government of India and the Asian Development Bank (ADB) on Friday signed a $98 million loan to improve horticulture crop farmers’ access to certiﬁed disease-free planting materials, which will boost their crops’ yield, quality, and resilience to climate impacts.

Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, and Kai Wei Yeo Officer-in-Charge of ADB’s India Resident Mission, for ADB, signed the loan agreement for the Building India's Clean Plant Programme.

On signing the agreement, Mukherjee stated that the ADB funding will promote plant health which is vital for improving productivity of farmers.

“The project supports the Government of India’s Atmanirbhar Clean Plant Programme (CPP) that enhances plant health management. It will help develop regulatory framework and institutional systems to effectively implement the CPP for horticulture in India. The project will involve close consultation with private nurseries, researchers, state governments, and growers’ associations to ensure its success and sustainability,” said Yeo.

This will be achieved through establishing clean plant centres dedicated to maintaining disease-free foundation materials. These centres will feature laboratories equipped with cutting-edge diagnostic testing methods and will be staﬀed with experts who are trained in clean plant centre operating procedures and diagnostic testing protocols, it said.

The project will roll out a clean plant certiﬁcation scheme, accrediting private nurseries, and testing and certifying their planting materials. It will be implemented by the Ministry of Agriculture and Farmers Welfare through the National Horticulture Board and the Indian Council of Agricultural Research.

8. Computerization of 67930 PACS with ₹699.89 crore under way: Amit Shah

ET Gov. 4 Dec. 2024

Union Minister of Cooperation Amit Shah furnished the information in a written reply to a question in the Lok Sabha on Tuesday.

NEW DELHI: The government on February 15, 2023 has approved the plan for strengthening cooperative movement in the country and deepening its reach up to the grassroots. The plan entails establishment of new two lakh multipurpose primary agricultural cooperative societies (M-PACS), dairy and fishery cooperative societies covering all the Panchayats/ villages in the country in five years, through convergence of various existing Government of India schemes, including Dairy Infrastructure Development Fund (DIDF), National Programme for Dairy Development (NPDD), PM Matsya Sampada Yojana (PMMSY), etc with the support of National Bank for Agricultural and Rural Development (NABARD), National Dairy Development Board (NDDB), National Fisheries Development Board (NFDB) and State Governments.

To ensure effective implementation of the plan, a standard operating procedure (Margdarshika) has been launched on September 19, 2024 indicating the targets and timelines for stakeholders concerned.

In order to strengthen primary agricultural credit societies (PACS) through computerization, the Government of India is implementing the project for computerization of functional PACS with a total financial outlay of ₹2,516 crore, which entails bringing all the functional PACS onto an ERP (Enterprise Resource Planning) based Common National Software, linking them with National Bank for Agriculture and Rural Development (NABARD) through state cooperative banks (StCBs) and district central cooperative banks (DCCBs). The ERP based Common National Software brings about efficiency in PACS performance through Common Accounting System (CAS) and Management Information System (MIS).

This information was furnished by Union Minister of Cooperation Amit Shah in a written reply to a question in the Lok Sabha on Tuesday.

Proposals for computerization of 67,930 PACS from 30 states/ UTs have been sanctioned, for which ₹699.89 crore has been released as GoI share to the states/UTs concerned and ₹165.92 crore to NABARD as implementing agency. As on November 21, 2024, total 40,727 PACS have been onboarded on the ERP software including 2,505 PACS from the state of Uttar Pradesh.

Under the project, support is provided to PACS of ₹3.91 lakhs (approx) per PACS which includes cost of hardware (₹1,22,158), software (₹72,103), training (₹10,198), establishment of support system (₹1,86,910), to all the states/UTs including the 5,754 sanctioned PACS of the state of Gujarat. Total 115 master trainers have been provided training under the project in the state of Gujarat, the minister added.

9. Over ₹56660 cr loans availed for animal husbandry & fisheries through 48.30 lakh Kisan Credit Cards: Govt

ET Gov. 6 Dec. 2024

NEW DELHI: Kisan Credit Card is a saving-cum-loan product launched by the Union government for farmers and in 2019, it was extended to cover working capital requirement of animal husbandry, dairying and fisheries. Banks can provide collateral free loan up to Rs 1.60 lakh. Interest subvention of 1.5% to the banks and prompt repayment incentive of 3% to the farmers are provided up to Rs 2 lakh on working capital requirement towards animal husbandry, dairying and fisheries activities against KCC cards under the 'Modified Interest Subvention Scheme' of the Ministry of Agriculture and Farmers Welfare, Government of India. The loans are provided for a tenure of one year.

This information was given by Union Minister of Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh alias Lalan Singh in a written reply in Lok Sabha on Tuesday.

By availing KCC, farmers are able to access working capital loans at subsidized interest rates, which helps them to meet their short-term financial needs for activities like animal rearing, poultry farming, and fisheries. Even farmer have option to take benefit of livestock insurance, personal insurance, assets insurance and health insurance (wherever the product is available). The loan is in the form of revolving cash credit, thereby farmers are able to withdraw and repay funds as needed, based on their cash flow and income generation patterns. By ensuring these financial benefits through institutional sources of credit, the KCC scheme helps farmers invest in better resources, improve productivity, and ultimately increase their income.

In order to ensure equitable access to KCC scheme, the Department of Fisheries, Animal Husbandry & Dairying in association with Department of Financial Services and state animal husbandry & fisheries department is conducting nation-wide AHDF KCC campaign since 2020. Detailed guidelines for the campaign was issued by defining the role of all stakeholders for effective implementation.

Various other campaigns have also been organized like Ghar Ghar KCC Abhiyaan, Kisan Bhagidari Prathmikta Hamari, PM Janman, PM Fasal Beema Yojana, etc. NABARD has also released a film on KCC in seven regional languages for displaying in various events and uploaded on YouTube for creating awareness through digital platform, the minister added.

10. PLI scheme for food processing industries attracted ₹8910 cr investment, generated 2.90 lakh jobs: Govt

ET Gov. 7 Dec. 2024

The emphasis on local production of raw materials for processed food has generated additional off-farm employment opportunities, significantly contributing to the economic development of rural regions.

NEW DELHI: The production linked incentive (PLI) scheme for food processing industry was approved by the Union Cabinet on March 31, 2021 with a budget of ₹10,900 crore, to be implemented from 2021-22 to 2026-27. A total of 171 applicants have been enrolled under the scheme. The beneficiary selection process under PLISFPI was conducted as a one-time exercise, preceded by active stakeholder engagement and extensive publicity to ensure broad participation.

This information was given by Union Minister of State for Food Processing Industries Ravneet Singh Bhittu in a written reply in Lok Sabha on Thursday.

By mandating the use of domestically grown agricultural products (excluding additives, flavors, and edible oils) in the manufacturing process, the scheme has substantially increased local raw material procurement, benefiting underdeveloped and rural areas while supporting farmers' incomes, the minister said, adding that the emphasis on local production of raw materials for processed food has generated additional off-farm employment opportunities, significantly contributing to the economic development of rural regions.

The scheme has significantly contributed to the country's overall growth and development by scaling up domestic manufacturing, enhancing value addition, boosting the domestic production of raw materials, and creating employment opportunities, the minister said. The scheme supports large companies, millet-based products, innovative and organic products, as well as small and medium enterprises, while also promoting Indian brands globally.

According to data reported by the scheme's beneficiaries, an investment of ₹8,910 crore has been made across 213 locations. As of 31 October 2024, the scheme has reportedly generated employment of over 2.89 lakh.

The government actively supports small and medium enterprises (SMEs) in the food processing sector through schemes like Pradhan Mantri Kisan Sampada Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industries (PLISFPI), and the Pradhan Mantri Formalization of Micro-food processing Enterprises (PMFME) scheme.

These schemes provide financial, technical, and marketing support to SMEs, facilitating capacity expansion, innovation, and formalization. SMEs are also eligible to avail the benefits under various components of the PMKSY scheme. PMFME scheme specifically targets formalization of unorganized units, improving their access to institutional credit, modern infrastructure, and enhanced food processing capacity.

Under the PLI scheme, a significant proportion of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies. Collectively, these initiatives have strengthened SMEs by fostering innovation, improving competitiveness, expanding market access, generating employment opportunities, and supporting the broader value chain in the food processing industry.

Under the PLISFPI, the government provides financial incentives to promote Indian food brands abroad, supporting branding and marketing activities for Indian-branded consumer food products in global markets. Beneficiaries are reimbursed 50% of their expenditure on branding and marketing abroad, capped at 3% of their annual food product sales or ₹50 crore per year, whichever is lower. Applicants are required to spend a minimum of ₹5 crore over five years to qualify. Currently, there are currently 73 beneficiaries under this component of the PLI scheme, the minister stated.

Pattern of assistance under PLI scheme

The beneficiary should achieve minimum year on year sales growth of 10% for claiming incentive under Category I, Category II and Millet-Based Products components of the scheme. Under Category I component, the companies have to make committed investments to increase their production capacities. If a company does not make the committed investment up to end of 2023-24, it is not eligible to receive incentives under the scheme.

Under Category-III -- Branding and Marketing component -- a company is eligible for financial incentives @ 50% of expenditure incurred on branding and marketing abroad subject to a maximum of 3% of sales of food products or ₹50 crore per year, whichever is less. The minimum expenditure should be ₹5 crore over a period of five years.

- Industry and Manufacture

11. Flipkart’s BBD Sale Logs Double-digit Topline, User Base Growth: Walmart

ET, 20 Nov. 2024

Flipkart’s Big Billion Days (BBD) sale, which began late September and continued through October, recorded double-digit growth in revenue and customer base, with same-day delivery volumes growing 2.5 times, said John David Rainey, chief financial officer of parent Walmart.

Flipkart’s robust sales performance significantly boosted Walmart’s international net sales, which grew 8% year-on-year (YoY) to $30.3 billion, the company noted in an investor presentation for the third quarter ended October.

Flipkart also contributed to a 43% rise in Walmart’s international e-commerce sales. While the festive season sales helped Walmart’s sales in Q3, there may be an adverse impact on Q4 sales, Walmart executives said in a post-earnings call on Tuesday.

ET reported on November 4 citing industry data which said ecommerce platforms clocked total sales of nearly ₹1 lakh crore (about $11.9 billion) during the month-long festive season this year— expanding by well over a fifth from the previous year. The US retailer said its advertising revenue grew 50%, driven by Flipkart’s ad business. ET had reported last month that Flipkart’s advertising income surged to nearly ₹5,000 crore in FY24, surpassing its marketplace fee revenue—a notable shift in its revenue mix.

PhonePe, also majority owned by Walmart, had a strong quarter with monthly transactions surpassing 8.7 billion and total annualised payment volume of around $1.6 trillion.

Flipkart’s sales performance significantly boosted Walmart’s international net sales, which grew 8% year-on-year (YoY) to $30.3 billion, the company noted in an investor presentation,

12. Housing for all: Tackling India's urban crisis of sustainable and affordable housing

ET Gov. 25 Nov. 2024

With the growing urban population living in cities there is also demand for affordable housing options. But India is facing a shortage in urban houses. According to concerned departments the shortage of houses numbers around 10 million. This highly affects the lower- and middle-class section of the society.

India, home to over 1.4 billion people, is witnessing an unprecedented rate of urbanization. As more people migrate to cities in search of better job opportunities and living standards, the demand for urban housing has surged.

This growth, however, has outpaced the country’s ability to provide affordable, adequate, and sustainable housing for all its citizens. Addressing this housing shortage is critical not only for ensuring economic growth but also for promoting social stability and inclusivity.

India’s housing crisis can be attributed to several factors like Population Growth and Urbanization, High Real Estate Prices, Inadequate Affordable Housing Stock, Land Availability and Regulatory Bottlenecks, Rural-Urban Migration etc. To look over the situation, the government along with public private partnerships have taken certain steps to deal with the problem.

Government Strategies to Deal with Urban Housing Shortage

Pradhan Mantri Awas Yojana: The scheme focuses on giving affordable housing to economically weaker sections and the lower income groups in the society. It provides loans and financial aid according to the category. The scheme has had great success in giving homes to millions of people around India. Further the government aims to make more houses for the poor classes.

Affordable Rental Housing Complexes: Affordable rental houses is a section the government is exploring. The need for housing for the financially weaker sections and minorities is at high because of unaffordability of homes. The scheme focuses on encouraging the construction of rental households for the poor. The scheme helps low-income workers and migrants in big cities. This ensures an affordable living for all.

Housing Technology in India-A Global Challenge: The Ministry of Housing and Urban Affairs (MoHUA) in India is focussing in a big way on the new cutting age technologies which can expedite construction with a minimalistic burden on the environment.

Credit Linked Subsidy Scheme: The credit linked Subsidy Scheme under the government gives home loans with subsidised interest rates. This scheme is another great option for poor or marginalised communities finding it difficult to have access to housing facilities.

This is beneficial in relieving the load of heavy loans on the poor and giving them a homestay. The government is planning to re-launch the scheme soon after it was halted in 2022. This is another initiative that acts to tackle the shortage of homes in urban areas.

Smart Cities Mission: Smart Cities are built in order to create affordable housing options. This aims at improving infrastructure and services for people. This not only caters domestic but also international investment. This creates opportunities for better housing and quality of living in urban areas for all.

Public-Private Partnerships- A Collective Strategy

India’s housing crisis is not a small challenge which is why it requires collective effort and collaborations like public private partnership to deal with the issue in a better manner. The combined effect of resources and efficiency works to cater the needs of the minority class housing needs.

Support of land and infrastructure: In collaboration with the PPP government aids to land and financial services while the private body works on their expertise to build homes. The close working of government along with private developing capabilities function to tackle the proof shortage in housing facilities for the lower class at an effective rate.

Also, the work is at a faster rate. Several states have already adopted this method to deal with housing problems. And there have been successful creations of many houses like that.

(The author is Director, ONE Group Developers; Views are personal)

13. Lightweight & strong aluminium solutions for renewable energy sector: Solar panels, wind turbines

ET Gov. 2 Dec. 2024

Through innovations in the energy sector, Aluminium is driving key breakthroughs in renewable technologies critical for a sustainable future.

As the world intensifies its efforts toward sustainability, the energy sector, responsible for over 73% of global emissions, is undergoing a remarkable transformation. According to the International Energy Agency (IEA), renewable energy accounted for nearly 29% of global electricity generation in 2022, with projections to reach 50% by 2030.

Aluminium is pivotal to this transition, with its use in renewable energy applications like solar panels, wind turbines and others. For example, in wind turbines, it can reduce system weight by up to 40%, which not only improves energy efficiency but also lowers production and operational costs, according to the International Aluminium Institute (IAI).

Furthermore, once put into use, Aluminium is 100% recyclable, contributing to a circular economy and reducing the carbon footprint of energy systems. Its lightweight, strong, and corrosion-resistant properties enable significant advancements in clean energy technologies, underscoring Aluminium's importance in building a sustainable future.

Boosting Solar Power Performance with Extruded Aluminium

Extruded aluminium products are essential to the development and technological enhancement of solar power plants. The production of photovoltaic solar panels employs the incorporation of extruded aluminium products.

As a matter of fact, aluminium materials make up about 85% of all installations made in the PV industry, including frames and mounting systems. Alloy 6063, known for its excellent extrudability and surface finish, is commonly used in solar panel frames, providing structural support and corrosion resistance. Aluminium frames also provide excellent structural support to solar panels, while the extruded mounting systems simplify installation by allowing the panels to be adjusted for maximum sunlight.

Its components have significantly reduced solar installations' overall weight, leading to a 20% increase in installation speed and a 15% reduction in installation costs, according to the Aluminium Association. Extruded aluminium products are widely used in large-scale solar farms to enhance structural strength, thermal conductivity, and corrosion resistance. These attributes significantly improve performance and long-term durability, increasing the efficiency of solar energy production.

Moreover, the metal can be easily shaped into highly efficient reflectors and is resilient against shocks compared to glass mirrors; therefore, it is highly suitable for solar applications. The International Renewable Energy Agency (IRENA) estimates that growth in global solar capacity through 2050 will require an additional 160 million tonnes of Aluminium.

Leveraging Aluminium Extrusion in Hydropower Projects

The design of hydropower infrastructures depends largely on aluminium extruded products, which impart strength as well as light weight to several components required in the hydroelectric mechanisms. Be it turbine blades or structural elements, Aluminium provides the strength and corrosion resistance needed for prolonged exposure to water and environmental factors.

Tubes made from this tough and corrosion-resistant metal ensure the longevity of systems under the constant onslaught of water and elemental changes during the transfer of water from the reservoirs to turbines. Alloy 5083, noted for its exceptional resistance to seawater corrosion, is often used in such applications, ensuring the longevity of the systems. Aluminium's excellent thermal conductivity also justifies its use in busbars and bus ducts.

While steel usually develops magnetic fields around conductors, an incidence that leads to energy losses and a temperature rise, Aluminium's non-magnetic nature helps avoid such issues. According to a report by the International Aluminium Institute (IAI), using Aluminium in hydropower systems has led to a 25% improvement in energy efficiency due to reduced energy losses and better thermal management. The versatility of Aluminium has also made it possible to develop complex profiles and shapes, thus helping engineers optimize designs for better efficiency and performance.

The Impact of Aluminium Extruded Products on Wind Energy

Extruded aluminium products have continuously gained importance in wind energy applications. These materials add significantly to the efficiency of the wind turbines. The excellent strength-to-weight ratio has made lightweight aluminium alloys standard in the construction of the blades of wind turbines. Alloy 6082, offering high strength and good corrosion resistance, is often used in constructing wind turbine components, enhancing performance and durability.

It enables manufacturing bigger and more efficient blades capable of producing more energy from the wind. According to the European Aluminium Association, using Aluminium in turbine blades has resulted in a 20% increase in energy output due to the ability to design longer, lighter blades that operate more efficiently. Moreover, in turbine tower platforms, aluminium extrusions are used extensively, and their resistance to corrosion means durability and long-term stability for wind energy systems.

Furthermore, aluminium extrusions are ideally suited for walkways, stairs, railings, and balustrades both within wind turbines and on floating structures, enhancing safety and accessibility while maintaining structural integrity.

The Importance of Aluminium in Electric Vehicle Batteries

Electric automotives are at the heart of a sustainable future, and their core lies in the batteries and charging infrastructure. Achieving climate objectives, such as limiting the rise in global temperature to below 1.5°C identified by the Paris Agreement, hinges on one major premise: the wide-scale adoption of BEVs (Battery Electric Vehicles).

Aluminium is crucial in battery technology because of its extraordinary conductivity and lightweight, which can handle fast charging and efficiently utilise energy. Alloy 1050, with high purity and excellent conductivity, is used in battery electrode foils, making it indispensable in various kinds of batteries. A typical 60-kWh BEV battery pack uses more than 30 kilograms of Aluminium in components such as electrode foils and cell casings, making the metal indispensable in various kinds of batteries and low-cost and high-energy variants.

As BEV demand surges, Aluminium's contribution to efficient and high-performing battery systems will be instrumental in driving the transition to a greener future.

Final Say

Through innovations in the energy sector, Aluminium is driving key breakthroughs in renewable technologies critical for a sustainable future. Alloys like 6063, 5083, 6082, and 1050 are integral to solar panels, wind turbines, hydro systems, and electric vehicles, enhancing efficiency and performance.

For instance, Aluminium makes up 85% of PV installations, contributes to a 20% increase in wind turbine energy output, and reduces BEV weight by up to 30%, significantly improving driving range. As the world transitions to cleaner energy, Aluminium's role as a catalyst for innovation underscores its indispensable contribution to a greener, more resilient future.

(The author is President, Jindal Aluminium Limited; Views expressed are personal)

14. Bold, beautiful, and a bit of flash is the approach this automaker is taking for its EVs

ET, 10 Dec. 2024

Mahindra is all-in on EVs, having already invested INR6,000 crore and plans to invest INR10,000 crore more by March 2027. The company is allocating 45% of its automotive sector investments towards electric vehicles.

An automobile and an ice-cream cannot be compared in any way, except one. Like ice-cream, a part of people’s desire to buy their favourite automobile, is their “drool appeal”.

Rajesh Jejurikar, executive director & CEO of auto and farm sector at Mahindra & Mahindra (M&M), emphasises that customers must first desire their eSUVs with their right brain, and then use their left brain to make it happen. He says, "We want customers to fall in love with our eSUVs; to want them so badly that they'll find answers to all the practical questions later."

For most part of their legacy portfolio of vehicles (Boleros or tractors), M&M has used their practical utility to target customers. That shifted with the new Thar followed by XUV 700. Now they are going “full Bhangra” for their new BE 6 EV and XEV 9e EVs.

“There is a bit of Punjab in every part of the world,” says Avik Chattopadhyay, an automotive branding expert. M&M is targeting customers who love vibrant parties and loud celebrations.

The cars are decked out with dazzling lights and sound systems that amplify their energetic vibe. Plus, the key fob — electronic key — lets you park remotely, just like a remote-controlled toy car!

M&M hopes such a bold approach appeals to a specific segment of customers worldwide. By targeting emotional and aspirational buyers, Mahindra's confident they'll drive sales and justify their massive investments in SUV.

The cumulative EV investments have already moved to around INR5,804 crore between April 2021 to September 2024, potentially rising to INR16,000 crore by March 2027. Crucially, EV investments now make for around 45% of M&M’s total automotive sector capex. Mahindra says it has allocated INR4,500 crore to the two newly launched eSUVs.

Designing desire

This approach builds on Mahindra’s experience with models like the Thar 3-door, which buyers often purchase for its sheer allure, although they are not very practical vehicles for the city commute. The company has also managed to convince people to buy top variants of XUV700 which cost INR30 lakh on road. The eSUVs aim to replicate this, combining bold aesthetics with features that evoke emotional connections.

However, desire isn’t enough. Pricing plays a crucial role in converting interest into sales. And the aggressive pricing will overcome EV adoption barriers, says Veejay Nakra, president of Mahindra’s automotive division.

M&M’s approach vs. Tata’s or MG’s

Mahindra front-loaded heavy investments, by building these EVs on an electric platform, is built from scratch. In contrast, Tatas have modified their existing ICE platforms to build their EVs. That is why M&M capital investments are higher, and therefore Mahindra needs to achieve higher revenue.

Even currently Tata Motors caters to different segments, which is evident from Tata Motors PV revenues being at INR11,700 crore as compared to auto segment standalone revenues at Mahindra being at INR21,110 crore in the quarter ended September 2024. While Mahindra’s auto revenue includes commercial vehicles, SUVs overwhelmingly drive its performance.

Mahindra’s most popular vehicle is the Scorpio, while Tata’s bestsellers are smaller SUVs like the sub-4-meter Punch and Nexon. Mahindra focuses on larger electric SUVs (over 4 meters) that benefit from a 5% GST rate, narrowing the EV premium over ICE vehicles in a segment where ICE SUVs are levied 50% taxation.

In electric, most of the popular models are under INR15 lakh, be it the MG Windsor, Tata Punch, Tiago or even variants of Nexon EV. The MG Windor has a 38-kwh battery as compared to the 59 and 79 kwh batteries from M&M.

Lower cost of ownership is a big factor in buying existing EVs, and EVs tend to be bought by people who are high milers but have fixed predictable routes. M&M wants to go in the opposite direction and sell on the “wow factor” from design and technology.

Tata Motors is facing growing competition in the EV market. Its volumes declined 11.2% YoY in the first eight months of FY25, with market share dropping from 68% in November 2023 to 49% in November 2024, according to Vahan data. MG’s Windsor EV has outpaced the Nexon EV for two consecutive months, becoming the top-selling EV.

Tata Motors has thrown everything in – price reductions, new launches like Punch.ev and Currv.ev and even setting up separate sales channel to offer a differentiated experience to buyers. This signals the need for fresh catalysts to drive the next phase of growth.

Addressing buyer concerns

Mahindra recognises that EV adoption comes with hurdles. Concerns around range, cost, and resale value remain barriers for many buyers. To address these, the company is exploring a range of innovative solutions:

Range anxiety: The eSUVs come equipped with a robust 59 and 79 kWh battery, which is likely to offer 400 km and 500 km in real world range addressing concerns about long-distance travel. Most users will only need to charge their vehicle two or three times a month, offering convenience for urban and suburban drivers.

Pricing and accessibility: By pricing its EVs closer to ICE (internal combustion engine) models, Mahindra is lowering the financial barrier to entry.

Resale confidence: Plans for buyback guarantees and lifetime battery warranty to the first buyer aim to reassure potential buyers about long-term value and maintenance costs.

“We don't want you to buy our eSUVs just because they're practical; we want you to buy them because you genuinely want them. And when you do, you'll realise you're not paying much for fuel, and you don't need to charge them often — maybe just two or three times a month, or even once a week. Who drives 500 kms a week, anyway?” says Jejurikar.

“Mahindra has been genuinely working on the strategy of first getting into the customers’ mindspace and it has been working for them,” says an industry expert. This has to be backed by strong market research. They have managed to do that in the last three launches and even in EVs they have managed it quite well, he noted.

Product positioning and profit targets

The electric-car market was shifting towards 'race to bottom products', says a top Mahindra official. Electric cars were becoming the third car in households, primarily used for utilitarian commutes. As new products are launched with lower prices, buyers were opting for the cheapest EVs. Thus, despite massive discounts, the Mahindra XUV 400 didn't sell well, teaching the company a valuable lesson.

The company expects that over a period of time, ICE & EVs will have similar net variable profit margins per vehicle in absolute rupees, calculated as the selling price minus variable costs (material, warranty, freight, manufacturing). The revenue realisation per EVs is much larger and the percentage profit margin will be lower than ICE.

Can M&M sell 10,000 EVs a month?

The company hopes the two models could ramp up to 7,500 a month which can be increased to 10,000 units monthly. The target market for the two models is the top two variants of UV 1-3 segments for a combined monthly volumes 41,000 units. The company expects this to sell in urban India, not just in top 10 cities but more widely in the top 50-75 cities of India.

The BE 6e is more driver focused and intended to get new set of customers who haven’t considered a Mahindra product while the XEV 9e which has some similarity with the XUV700 is for the more mainstream family buyer.

However, the 10,000 units is “a tall target” says an analyst at a domestic brokerage. The price of the variant with 79 kwh battery will be high and is likely to restrict the volume. Moreover, the monthly sales run of EVs itself is smaller than what the company is targeting.” Electric car retails in India have been hovering around 8,000 units a month so far this year.

“Even the Thar Roxx and Scorpio N had a tremendous pull with high bookings, but it didn’t translate into that kind of monthly sales. Not to forget here we are talking about an EV. Thar as a portfolio will reach 10,000 units mark only now," says a company dealer.

That said, the EV category is expected to get a major boost in 2025 when all major OEMs will put new products and invest heavily to popularise and try to remove the hurdles to EV adoption.

Mahindra will be doing its bit, it is likely to take some more initiatives like offering a buyback, leasing, and subscription schemes, said a person aware of the company’s plans.

Resale of the EV model is another common concern which M&M is likely to address by announcing a buyback scheme closer to the models going on sale, the person said.Battery replacement concerns can be assuaged by offering a subscription model. “I won’t be surprised if the company comes up with these as their ambitions regarding the scale of the business is really high,” the person added.

On criticism on dependence on global suppliers

M&M has been criticised in some circles for sourcing key components from global suppliers. Although this isn’t something very different from the industry practices. Jejurikar says suppliers' help in leapfrogging technology is critical. It's not just about the battery, motor, or music system. Around 250 software professionals work for Mahindra out of Coimbatore, but a total of 2000-3000 software engineers have worked on the e-SUVs, mostly from automotive-focused software companies. Also, M&M says it owns the IPs that differentiate its products.

The capital investment and the ownership of IP are clear indication that M&M is playing on high-roller table. Now to wait and see if they can cash in on their chips.

15. Grain-based ethanol: Maize can be cornerstone for India’s clean, green & sustainable future

ET Gov. 11 Dec. 2024

Maize can become the cornerstone of a cleaner, greener, and more independent future as the nation continues its shift to renewable energy.

India declared its goal to reach net zero carbon emissions by 2070 during the 26th session of the United Nations Framework Convention on Climate Change (COP 26) in November 2021. Aligned to this, India has submitted its long-term low-carbon development strategy to the UNFCCC.

The country is addressing the climate change challenge through leadership across multiple sustainable practices. An interesting initiative amongst these is the Ethanol Blended Petrol (EBP) Programme that serves not just India’s climate change and environmental goals, but multiple other objectives. These include security of energy supply, reducing the crude oil import bill, promoting an Atmanirbhar Bharat, supporting farmer incomes, and rural development and employment through new distilleries set up in rural areas.

How is India performing with respect to this ethanol blending initiative? The scale of ethanol blending in petrol has grown immensely from 1.53% in 2013-14 to 13% in 2023-24, even as India’s demand for petrol has grown. Given this progress, India has brought forward its target for 20% ethanol blending from 2030 to 2025-26 and is considering further increasing this in future.

Achieving these targets requires India to focus on increasing ethanol output, in addition to increasing the ethanol production capacity which has already doubled over the last four years. The current ethanol manufacturing capacity stands at 1623 crore litres, with 1700 crore litres of capacity required by 2025 to meet the 20% ethanol blending target. These numbers would increase if India further increases its blending proportion target.

It is important that efforts towards promoting ethanol continue, as ethanol blending has already generated positive benefits for the Indian economy. Being the third largest energy consumer in the world, India has conventionally relied on oil imports to meet its increasing energy demands.

This dependency not only creates challenges for energy security but also results in significant outflow of foreign currency. Over the last decade, ethanol blending has already led to over Rs 1 lakh crore in savings in foreign exchange. At the same time, it has also driven a reduction in CO2 emissions of 544 lakh metric tons, and a disbursal of ₹87,558 crore to farmers producing feedstock for ethanol manufacturing.

Given its importance, how can the future of ethanol be secured? Ethanol for the Ethanol Blended Petrol programme is entirely manufactured domestically, promoting an Atmanirbhar Bharat. While in its initial years, the industry relied on sugarcane, the emphasis now is shifting towards grain. Nearly 53% of the ethanol produced in 2023-24 came from grains. Within grain, maize accounts for the majority share with the remainder coming from damaged / broken rice that is unfit for human consumption.

Indeed, grain-based ethanol has been recognised as an essential contributor to the Ethanol Blended Petrol programme by NITI Aayog in its Roadmap for Ethanol Blending. Supporting grain-, and maize-based ethanol in particular, provides several benefits.

First, from a security of supply perspective, it is essential that a mix of feedstock be used. As sugarcane production can only partially be diverted for ethanol manufacturing, we need other alternatives such as grain for manufacturing ethanol. In fact, the use of sugarcane juice for ethanol manufacturing was temporarily capped for 2023-24 due to concerns around insufficient supply of sugar in the domestic market and to keep a check on sugar prices. Given such apprehensions, grain-based distilleries were set up and were incentivized through interest subventions to manufacture ethanol.

Second, from an environmental and water stress perspective, maize cultivation uses less water than both sugarcane and rice. Indeed, maize is by far the most water-efficient of ethanol feedstocks, using only 2.57 litres of water per litre of ethanol produced in contrast to the 3 litres used by sugarcane.

Third, it is supporting farmers’ welfare not only by promoting a water resource-efficient crop, but also by enabling farmers to receive better prices for their crop with increasing demand for maize for ethanol.

Given these benefits, with the efficient availability of maize the nascent grain-based ethanol sector can be envisaged to play an important role in driving India's goals of self-reliance, rural prosperity, and sustainable development. Maize can become the cornerstone of a cleaner, greener, and more independent future as the nation continues its shift to renewable energy.

(The author is a Member of Parliament, Rajya Sabha; Views expressed are personal)

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16. Indian Hotels Aims to Double Portfolio, Revenues by 2030

ET, 20 Nov. 2024, iStock

Tata Group-owned Indian Hotels Company (IHCL) has set an ambitious target of growing its hotel portfolio to more than 700 by 2030 from the current 350.

The operator of Taj and Ginger brand of hotels also aims to more than double enterprise revenue to over ₹30,000 crore from ₹13,000 crore currently as part of its new ‘Accelerate 2030’ strategy.

IHCL aims to grow its portfolio of operational hotels to over 500 by 2030 from 232 and boost consolidated revenue to over ₹15,000 crore in 2030 from ₹7,000 crore. It is also targeting to increase return on capital employed to 20% in 2030 from 15% currently and sustain its net cash positive position going forward.

“Our vision is to be the most valued, responsible and profitable hospitality ecosystem. So the revenues should double, the portfolio should double. The ROCE should go to 20% plus, and the NPS stays at 70 plus,” said IHCL CEO Puneet Chhatwal on Tuesday.

“IHCL has surpassed guidance by achieving a portfolio of 350 hotels, with over 200 hotels in operation and delivered ten consecutive quarters of record financial performance. This strong performance, coupled with a robust balance sheet, positions us well to accelerate our growth momentum,” he added.

Chhatwal said enabling the new vision are ‘long-term structural tail winds’ for the sector including India’s forecasted GDP growth of over 6.5%, government’s continued focus on infrastructure spends, hotel demand outpacing supply and rising consumer affluence.

Under ‘Accelerate 2030’, IHCL’s focus will be on revenue growth with 75% coming from traditional businesses and management fee and 25% from new and re-imagined businesses. The chain expects its management fee to cross ₹1,000 crore by 2030, led by not like-for-like growth and increasing share of managed inventory.

IHCL said new businesses will ‘rapidly scale’ through a capital light route, delivering over 30% compound annual growth in revenue, while reimagined businesses of The Chambers and TajSATS will also continue their ‘growth momentum.’

“IHCL remains steadfast in its commitment to realise India’s tourism potential...IHCL will expand its brandscape with the launch of new brands, tapping heterogeneous market landscape and taking portfolio to 700 hotels by 2030,” said Chhatwal.

17. USD103 billion revenues, 1.3 million jobs: Manufacturing prowess in this sector is what India needs

ET, 22-Nov. 2024

At 30%-plus year-on-year, electronic manufacturing services is one of the fastest growing sectors in India. This is the first step towards making India one of the world’s microchip manufacturing hubs. And the work that is being done in the field of printed circuit boards will help learn the craft of precision manufacturing needed for making chips.

Sudhagar Venu is a long way from home, Tamil Nadu. What brought him over 2,200 km away to Noida, Uttar Pradesh was work at NMTronics India, an electronic manufacturing services (EMS) company.

Venu introduces himself as a customer-support manager, but he is more than just that. “I operate the machines too when needed,” he says. A full-stack electronics manufacturing services technical guy, that’s Venu for you.

He is amongst the 1.3 million-plus “technical” talent that are helping India take the first step towards becoming one of the microchip manufacturing hubs of the world. In today's world, manufacturing microchips is the acme of precision manufacturing, much like how automobile manufacturing was for the 20th century. Naturally, countries like India that have never had any prior exposure to this craft (except chip design but that is more software less hardware) can get there only if they first demonstrate the ability to manufacture something simpler.

Think printed circuit boards (PCBs).

That’s the stuff you see when a technician dismantles your desktop or laptop to repair it. To give a rough analogy, Indian companies are placing the microchips and other such components on a “board” and making sure that the board (PCB) works flawlessly.

This journey to the first step of EMS started when Apple started making its chargers and phones in India. Today the sector has grown rapidly with companies like Dixon, Avalon, Cyient DLM, Syrma SGS, Kaynes, NMTronics (unlisted) et al. that have a combined market capitalisation of INR14,6609 crore and employ more than a million people. In FY23, the total size of the EMS industry in the country was USD101 billion. This is expected to reach USD500 billion in FY27.

This implies huge job creation. “Our report highlights that the electronics sector is anticipated to create employment for 12 million people in direct and indirect jobs by 2027,” says Ramesh Alluri Reddy, CEO, degree apprenticeship business at Teamlease. Enthusiastic investors are buying into these companies at steep valuations.

While the talent of people like Venu is the necessary condition, the sufficient condition to make flawless PCBs is an advanced technology called surface mount technology (SMT). This technology was invented in the 1980s but has become more advanced. It is now much more automated, uses a simpler process to assemble the PCB, and yet it needs the operator (say Venu) to be really mindful of mechanical or environmental factors. This is a bit like commercial airline pilots who, for the most part, let the planes fly through software but have to come into the picture when the weather conditions change or there is any change in operating conditions.

Together, workers like Venu and SMT have already made EMS one of the fastest growing sectors – 30%-plus year-on-year – of the Indian economy. According to a Phillips Capital report published late last year, “India’s PCBA CAGR is expected to rise to c.39% over FY22-FY26 from c.26% over FY16-FY22. Until FY20, most complex PCBs were manufactured outside India. In FY20, usage of multi-layer PCBs increased to 31% in terms of value vs. just 6% in FY19; they are widely used in mobile phones, medical electronics, Industrials, EVs, A&D and in other critical electronics.”

For a country like India, which wants to move to the middle-income group and then to the high income, worker productivity is a key determinant. According to the economics Nobel prize winner Paul Krugman, “Productivity isn't everything, but, in the long run, it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.” This usually means that a country’s workforce needs to work with “more capital”, in other words, more advanced machinery. That’s where the SMT technology becomes important and so does the skill level needed to manage such a machine.

The machine that makes it all possible

Aashish Saurikhia, director, public policy at India Cellular and Electronics Association (ICEA), explains that the PCB assembly is actually making the electronics used in various products like mobile phones, consumer electronics, medical electronics or strategic electronics. In terms of manufacturing, the PCB is customised as per product requirements with semiconductor chips or active driver components being the brain which are mounted on the bare board harnessing the surface mount technology.

The entire process of mounting different chip components onto the bare printed circuit board is called surface mount technology. Saurikhia says thousands of machines are used to manufacture electronic components, some 40-44 machines alone manufacture lithium-ion cells, with 50 machines making resistors and 50-100 used for producing conductors with the semiconductor domain being different and very complex.

But the standout machine, the lead of this cast, is the SMT or the PCB assembly line. This costs anywhere between INR12 crore and INR15 crore to install, depending on the size of the project.

In the PCB assembly line, the first input is the bare PCB. Small surface mount devices are put on the surface of the PCB. That is why it is known as surface mount technology.

Then paste is applied on top of the golden pads of the PCB. This is a conductive material. For example, between the two pads, the distance may be as small as less than one millimetre.

Everything is quite miniaturised. Each ball size is around 10 microns (one micron is 1,000 of an inch of a millimetre). This is put on the golden pads of the PCB. Then the pick and place machines pick up the chip components and place them on top of the PCB. And then it is passed through the reflow oven, which melts this paste and gives it a semi-liquid stage between solid and liquid. Then it is immediately cooled down and becomes a very solid joint. The idea is to complete the circuit.

Soni Saran Singh, founder, managing director and CEO NMTronics India, says the costliest capital equipment comes from Fuji. A lot of the machines are there in the PCB assembly line which are very high-tech machines. They are not manufactured in India. Companies in Japan, Korea, Taiwan, China, Italy, and Germany make them. These countries have been in this business for more than five decades, and they have got into this cutting-edge technology. As of now, India is an importer of this capital equipment, but gross value added through the use of this equipment is making it worth our while.

One of the big companies that is into manufacturing capital goods in India is Applied Material. It designs and manufactures the prototype in India. Actual manufacturing happens overseas.

Due to the high-precision nature of these machines, most of them are imported from Vietnam, Philippines, Taiwan and largely China. These machines are imported and assembled in India and have a very high degree of precision, and consistency of that precision, points out Saurikhia. He says that after four or five years, the machines are discarded in developed countries like Germany and sent to third-world countries.

The rejection rate of these machines is minimal. The rejection rate should be less than 1% as these are very high-precision machines with a very high speed, says Singh of NMTronics.

The auto-EMS link

Almost 30 years have passed when the last manufacturing industry was established in India and that was the automotive sector. Companies such as Ford, General Motors (GM), Renault Nissan, Volkswagen, Skoda set up shops and joined incumbents such as Maruti Suzuki and Mahindra & Mahindra. Even after the exit of Ford and GM, the automobile sector employs 19 million people (directly and indirectly) and this created a new class of blue-collar workers.

And in some ways the automotive industry provides a link to the EMS industry. Remember Venu, mentioned earlier in the story? He is a diploma holder in electrical and electronics engineering from an industrial training institute with seven years of industry experience. Starting as an apprentice, he climbed to the role of service engineer in his previous companies Lucas-TVS (auto component firm) and later Nokia India.

About 40% of automobiles today are electronically driven with PCBs that carry multiple chips mounted on the surface of the boards — dashboard cluster, infotainment system, engine control unit, body control unit, head and rear lamps, ambient lighting within the cabin, automated gear shift, etc. Electric vehicles are strapped with a higher number of chips in the PCB for operating different vehicle functions.

“In automatic driving, there is nothing mechanical. Everything is controlled through the PCB,” elaborates Singh of NMTronics. The company is an equipment supplier and takes responsibility for setting up the production floor for the PCB assembly line and testing. It also handles the after sales service and application engineering of this capital equipment. Incidentally, NMTronics is also making some automation tools like the laser-marking machines that are used in PCB assembly lines.

Jibak Dasgupta, director general of Indian Machine Tool Manufacturers' Association (IMTMA), talks about various production linked incentive (PLI) schemes that the central government is offering to boost the sunrise sector of electronics manufacturing. The PLI scheme is not directly benefiting the machine-tool sector, Dasgupta says, but goes to the user industries, which is electronics. So, it creates a lot of demand in the market, and also in the machine-tool industry.

Indian machines are yet to reach a very high precision level but are slowly coming into the competition, according to him.

This one is about ITI not IIT

The best part of the EMS’ rapid growth is the employment it promises to generate. For the most part, this workforce will have to come from people who have taken vocational training at various ITIs (Industrial Training Institute). These institutes have been the cornerstone of technical education, consistently shaping the nation’s workforce and equipping millions of young individuals with the skills essential for diverse vocational careers. With over 15,000 ITIs currently operating across the country, the FY25 Union Budget’s ambitious plan to skill two million youth over the next five years, alongside the upgrade of 1,000 ITIs into outcome-driven hub-and-spoke models, represents a crucial step forward.

For once, even with so many institutes the sector will face staffing challenges. “As industries, particularly electronics, prepare for exponential growth (projected to create employment opportunities for 12 million people by 2030), the current ITI infrastructure faces significant challenges. At present, these institutes cater to only 48% of potential demand, generating 1.8 million qualified candidates annually, of whom merely 40% —around 360,000 — are employable in the electronics sector,” says Reddy of Teamlease. He strongly recommends an increase in the number of ITIs. “Expanding ITI capacity and integrating emerging technologies into their curricula will be instrumental in addressing this critical skills gap.”

Wait, there is more.

There are additional sources of talent for PCB assembly lines beyond ITIs, as outlined by the Electronics Sector Skills Council (ESSC). According to ESSC, individuals with a 12th-grade education can qualify for the role of a PCB assembly operator if they are provided with appropriate training. This opens a crucial pathway to tap into a broader talent pool from general education streams, which have traditionally been underutilised for technical roles. “The qualification requirements for PCB assembly operators, as detailed in the ESSC framework, emphasise specific skills such as assembling, soldering, and testing components, which can be effectively developed through targeted training programmes,” says Reddy.

The first step in a thousand-mile journey

India really wants to be a part of the chip-making value chain. There are a lot of skills ranging from deposition (semiconducting material), lithography, etching, packaging et al. Those skills will take time to develop. The PCB assembly is a strong first step towards acquiring advanced skills and the capital needed to move to the next step.

It is already generating employment for a technically skilled workforce. All this has happened in the last five-six years.

But the best is still to come. That could take another four years.

18. A New Era of Education: What needs to be done to unlock India's potential for prosperity.

ET Gov. 28 Nov. 2024

For India to become a developed country within the next three decades is a humongous task. However, it's possible to achieve this extraordinary feat when 1.5 billion people are ready to strive together in this direction.

India today is at the crossroads of history. The question, "Will India grow old before she becomes rich? "Does not have simple answers.

Increasing India's per capita income by six-fold in this period requires an extraordinary commitment to educating and equipping a young population with world-class education and skills, which will help her excel in every field and raise the per capita income at a rate never seen before.

Transforming Indian education is a sine qua non to reap the benefits of demographic dividend. The Economic Survey 2018-19 says that the dividend would peak around 2041 (when the working-age population would be 59 percent of India's population). For the country, this dividend means millions of more people to work and thus to fuel the economy. Coupled with this transformation, the young population must also be educated to uphold our timeless traditional values and rich cultural heritage.

Indian education has undergone many incremental changes over the past few decades, but we need to increase the pace of these changes to keep up with the growing requirements of our young population to thrive, and not just survive, in a rapidly changing world. Thus, we cannot afford to 'leapfrog' but need to 'pole vault' to bring about fundamental changes in the way Indian education functions at present. Studies have shown over and over again that the Emotion Quotient (EQ) is far superior to the Intelligence Quotient (IQ) from a decision-making perspective, a social engagement perspective, and a personal growth perspective. Having all the world's intelligence means nothing if there is no emotional reserve to bank on. We can tackle all the issues concerning Indian education today only through 'out of the box' thinking, a futuristic outlook, and amalgamating emotional intelligence as an important element in the system and philosophy.

As Noble Laureate Kailash Satyarthi puts it, "India is a land of thousands of problems, but with millions of solutions." We need to face each challenge head-on to bring about a radical transformation in the way education is delivered to millions of children today and transform it into the finest educational system in the world.

National Education Policy 2020 lays out a comprehensive road map to achieve this objective. It will allow the integration of general education, four-year undergraduate degree courses, and the introduction of native languages in higher education. The policy opens the door for people of any age group to join higher education. Its priorities are to introduce more online mediated education, such as MOOCs and regional languages, and revamp higher education. The challenge lies in implementing it in a time-bound manner.

"We read and write poetry because we are members of the human race. And the human race is filled with passion. Medicine, law, business, and engineering are noble pursuits and necessary to sustain life. But poetry, beauty, romance, love, these are what we stay alive for". This is precisely what the National Education Policy hopes to achieve by integrating arts into sciences and literature into medicine or engineering and should be an active system we should aspire to reach to transform our education system.

The following steps need to be taken to ensure the practical realization of NEP goals:

A strong political will, as exemplified in the No Child Left Behind Act of 2001 in the US and 'SISU', i.e., readiness to do whatever it takes to ensure Finland's schools remain the best in the world, can be the game changer. India's central and State Governments can drive this transformation.

Mobilising CSR funds, Public-Private Partnerships, and collaboration with civil society organizations can achieve optimal financial support.

Emphasis on 'Rakshan, Poshan, and Shikshan,' i.e., ensuring a child's survival and overall safety, health, and well-being. Finally, the right education would provide productivity gains that are recovered.

As experienced worldwide, excellent but affordable public education is the only ray of hope for the vast majority of Indian parents to ensure a bright future for their wards. Strict implementation of all the significant provisions of the Right to Education Act 2009 would go a long way in realizing this.

Recognizing outstanding schools and colleges would create a virtuous cycle to spread the culture of excellence.

Capacity building and continuous professional development of teachers is a critical factor in ensuring the sustainability of this transformation.

The use of technology with clear objectives, such as tracking teachers' and students' attendance, identifying and mainstreaming out-of-school children, ensuring meritocracy in teachers' recruitment and training, timely funding flow, enhancing Learning Outcomes, etc., can significantly enhance efficiency in delivery.

Finally, it takes an entire village to raise a child. All other stakeholders, such as SMCs, PTAs, urban and Rural local bodies, and other Government departments, must be sensitized to become active partners in this mission.

Realizing audacious dreams requires audacious action. Our nation is at a crucial juncture of development, innovation, and tradition, and we need to positively utilize and recognize the value of a transformation in our education policy and system. We have so much to look forward to and so much to grow in the coming years, and this can all have beneficial outcomes if we are open to change and take inspiration and learn from wherever we can so that we can assert our place in the global system and produce holistically developed young individuals.

19. Big Hotel Brands See Room for Growth in Manufacturing Hubs

ET, 2 Dec. 2024

A number of mid- and upscale hotels are coming up in India’s manufacturing hubs, driven by the growing needs of business travellers for quality accommodation.

iStock

Hotel brands such as Marriott, Hyatt, Orchid, Regenta, Vivanta and Ginger are setting up properties in industrial belts such as Vithalapur, Talegaon, Chakan, Bhiwandi, Pithampur, Kalinganagar, Sanand and Hosur. While visiting executives used to stay in hotels in cities close to these industrial areas in the past, increasing manufacturing activities and traffic woes are making them seek accommodation close to their factories.

At Vithalapur, a five-star property, the Courtyard by Marriott and Hyatt Place, is expected to become operational within the next 12 months, underscoring the demand for premium hospitality options in this fast-evolving industrial hub over a two-hour drive from the Ahmedabad city. In the automotive town of Talegaon on the outskirts of Pune, the recently opened 100-room Fern Residency has gained traction among business travellers. Pithampur in Madhya Pradesh has seen mid-market offerings like Click Hotel and Sayaji, riding on robust corporate demand from the manufacturing sector. Chakan in Pune district and Bhiwandi near Mumbai are also attracting attention, with Ginger Hotel developing 200-room properties in both locations.

These developments reflect the broader trend of hospitality players expanding to locations with significant manufacturing activity.

“Manufacturing clusters represent opportunities for the hospitality sector as there is a critical need for quality accommodation to cater to business travellers,” said Nandivardhan Jain, chief executive of Noesis, a hotel investment and advisory firm. “Investors and hotel brands are increasingly recognising the untapped potential of these markets, especially with multinational corporations and SMEs establishing operations in these hubs.”

As India's manufacturing and industrial sectors continue to flourish, “we are seizing the opportunity to bring world-class hospitality to these thriving hubs,” said Kadmbini Mittal, regional vice-president, commercial, India and Southwest Asia at Hyatt. The US-based hotel operator has a pipeline of eight new properties and over 1,200 keys slated to open by the end of 2025 in India.

Demand for branded hotel stay is growing in sync with India’s expanding manufacturing and industrial base. These micro markets are typically located in proximity to industrial corridors along national highways and large transport nodes like ports.

“Development of hotels to cater to this demand is primarily in the midscale and upscale segments like Ginger hotels at Sanand, Kalinganagar and Jamshedpur, with upcoming hotels in Chakan and Bhiwandi as well as a multi-brand Vivanta and Ginger at Hosur,” said Suma Venkatesh, executive vice-president, real estate and development, at Tata Group-owned Indian Hotels Company.

Construction of hotels is facilitated through demarcation of land parcels, capital subsidy, tax benefits and utility cost structure, as hotels form a part of the infrastructure for these zones, said Venkatesh.

Ongoing feasibility studies and projects in markets like Ranjangaon, Manesar and Pithampur are likely to result in further hospitality investments, as companies recognise the value of having quality hotels near manufacturing facilities. Hotel companies following the asset light routes are looking for strategic tie-ups in industrial hubs.

“With companies wanting quality hotels near production facilities we are also looking at management and lease agreements in these locations,” said Chander Baljee, chairman and managing director of Royal Orchid and Regenta, which has upcoming hotels in automotive, steel and heavy engineering hubs in Jamshedpur and Maharashtra.

Lemon Tree is considering an asset-light strategy for properties in manufacturing hubs. “As we ramp up our business, we see demand which is sustainable in these markets,” said CMD Patu Keswani.

20. Air India Orders 100 More Airbus Planes in Expansion Push

ET, 10 Dec. 2024

Air India Ltd expanded its fleet order, adding 100 Airbus aircraft to its previous 470-plane order placed in 2023. The cumulative order has swelled to 570 planes, solidifying the airline's modernisation and expansion plans since its acquisition by Tata Group in January 2022.

The new order comprises 10 wide-body A350 jetliners and 90 narrow-body A320 family aircraft, including A321neo planes, the airline said in a statement on Monday. Air India did not disclose the value of the order.

The deal is worth about $6.4 billion after typical industry discounts, Reuters reported, citing estimated delivery prices from UK-based Cirium Ascend.

Air India placed its first order under the Tata Group fold in 2023, choosing 250 Airbus and 220 Boeing jetliners, the world’s largest at the time.

With the latest addition, Airbus accounts for 350 of the 570 aircraft, which will serve Air India and its low-cost unit, Air India Express.

"India’s passenger growth outpaces the rest of the world. With improving infrastructure and a young, global population, Air India is poised for greater growth. These additional aircraft will help build a world-class airline connecting India to every corner of the world," said Natarajan Chandrasekaran, chairman of Tata Sons.

Guillaume Faury, Airbus CEO, emphasised the significance of Air India’s growth. “We are committed to supporting Air India’s ‘Vihaan.AI’ transformation under Tata’s leadership,” he said.

Air India has received six A350 aircraft from Airbus, with its total order book now at 344 planes. Of the 250 Airbus planes ordered last year, 40 were A350s, and 210 were A320 family jets. Meanwhile, Boeing has delivered 35 of the 220 737 MAX jets from its order.

To support its growing A350 fleet, Air India has partnered with Airbus’ Flight Hour Services-Component (FHS-C) for comprehensive maintenance and engineering services to ensure optimal reliability and performance.

Indian airlines have nearly 1,300 aircraft on order, set for delivery through the mid-2030s, according to CAPA India. IndiGo, the largest Indian carrier, surpassed Air India’s 470-plane order in June 2023 by securing 500 Airbus A320 family jets, followed by an additional order for 30 A350 aircraft. Akasa Air, a new entrant, ordered 226 Boeing 737 Max planes.

India and the World

21. US returns looted antiquities worth $10 million to India

CNN, 15 November 2024, By Karina Tsui

An 11th-century sculpture of a celestial dancer was among 1,440 artifacts repatriated from the US to India. The United States has returned more than 1,400 looted artifacts worth $10 million to India as part of an ongoing initiative to repatriate stolen art from countries across South and Southeast Asia, the Manhattan District Attorney’s office announced Wednesday.

The trafficked goods recovered include items that, until recently, were on view at New York’s Metropolitan Museum of Art. Among them is a sandstone sculpture of a celestial dancer that was smuggled from central India to London, before being illegally sold to one of the Met’s patrons and donated to the museum.

The repatriations resulted from “several ongoing investigations” into looting networks, including those operated by convicted art traffickers Nancy Wiener and Subhash Kapoor, an American antiquities dealer who was sentenced to 10 years in jail for running a multimillion-dollar looting network through his New York gallery, the Manhattan District Attorney’s Office said in press release.

The Tanesar Mother Goddess statue was looted from a village in Rajasthan, India in the 1960s before eventually ending up on display at the Metropolitan Museum of Art in New York.

Alamy

Kapoor was sent to face charges in India’s Tamil Nadu state following his arrest in Germany in 2011. The DA’s office obtained an arrest warrant for him in 2012though he remains in custody in India, pending his extradition to the US.

Cambodia welcomes the Met’s repatriation of centuries-old statues looted during past turmoil

“Today’s repatriation marks another victory in what has been a multiyear international investigation into antiquities trafficked by one of history’s most prolific offenders,” William Walker, the federal Homeland Security Investigation’s New York special agent in charge, said in a press statement.

The items were formally returned at a ceremony at the Indian consulate in New York Wednesday.

Since its creation over a decade ago, the Manhattan District Attorney’s Antiquities Trafficking Unit –– a task force of lawyers, investigators and art experts –– has recovered 5,800 antiquities valued at almost $460 million. The unit has also convicted 16 people of trafficking offenses and filed for the extradition of six others linked to stolen cultural property.

In July, the US and India signed an agreement to protect cultural property by preventing illegal trades and streamlining the process of returning stolen antiquities back to India.

22. UPI Adoption In India: 'India's success with UPI offers replicable model for other nations'

ET Gov. 8, Dec. 2024, ANI

The paper, which runs into 67 pages, titled 'Open Banking and Digital Payments: Implications for Credit Access' was authored by Shashwat Alok, Pulak Ghosh, Nirupama Kulkarni and Manju Puri.

India's success with UPI offers a replicable model for other nations, a paper written by noted experts asserted, arguing that how this indigenous fintech solution combined public digital infrastructure with open banking policies to reduce financial exclusion, foster innovation, and promote equitable economic growth.

The paper, which runs into 67 pages, titled 'Open Banking and Digital Payments: Implications for Credit Access' was authored by Shashwat Alok, Pulak Ghosh, Nirupama Kulkarni and Manju Puri.

Among key highlights of the paper are that UPI has enabled underserved groups, including subprime and new-to-credit borrowers, to access formal credit for the first time.

In regions with high UPI adoption, loans to new-to-credit borrowers grew by 4 per cent, and to subprime borrowers by 8 per cent, the paper claimed.

Unified Payment Interface is India's leading digital payment platform. Payments through digital means in India are hitting fresh highs, as its citizens are increasingly adopting the emerging modes of transacting on the internet. Among others, a key emphasis of the Indian government has been on ensuring that the benefits of UPI are not limited to India only; other countries, too, benefit from it.

Since its launch in 2016, the Unified Payments Interface (UPI) has transformed financial access in India, enabling 300 million individuals and 50 million merchants to perform seamless digital transactions.

By October 2023, 75 per cent of all retail digital payments in India were through UPI.

The affordability of digital technology played a critical role, enabling widespread UPI adoption in rural and urban areas alike.

According to the paper, a 10 per cent increase in UPI transactions led to a 7 per cent rise in credit availability, reflecting how digital financial histories enabled lenders to assess borrowers better.

"Between 2015 and 2019, fintech loans to subprime borrowers grew to match those of banks, with fintechs thriving in high UPI-usage areas."

"Despite the credit surge, default rates did not rise, showing that UPIenabled digital transaction data helped lenders expand responsibly," the highlight section of the paper read.

23. Indo-US workshop on 6G technologies at IIT Delhi to asses current status of 6G development in India

ET Gov. 10 Dec. 2024

The Department of Electrical Engineering and the Foundation for Innovation and Technology Transfer (FITT) at IIT Delhi are organizing “Indo-US Workshop on 6G Technologies” on December 9-10 at the Research and Innovation Park, IIT Delhi campus.

NEW DELHI: The Department of Electrical Engineering and the Foundation for Innovation and Technology Transfer (FITT) at IIT Delhi are organizing “Indo-US Workshop on 6G Technologies” on December 9-10 at the Research and Innovation Park, IIT Delhi campus.

The main objective of the workshop is to assess the current status of 6G development in India, discuss India’s 6G goals in terms of use cases to be addressed, technologies to be developed, IPR and prototype/ testbed creation, manufacturing of equipment/ devices/ prototypes, and development of skilled manpower, and recommend strategies for achieving these goals and how Indo-US collaboration could help.

The workshop will feature panel discussions and talks by telecom stakeholders from India and the US, including eminent academicians, representatives from government and standardization bodies, telecom operators, and equipment manufacturers.

Speaking about the workshop, Prof. Shankar Prakriya, Head, Dept. of Electrical Engineering, IIT Delhi, who is a telecommunication researcher, said, “The workshop is a unique opportunity for students, researchers, and engineers to get a firsthand understanding of 6G. It is very timely given that 6G research is already underway, and standardization is expected to start next year.”

The workshop coordinator, Prof. Saif Khan Mohammed, Dept. of Electrical Engineering, IIT- Delhi, said, “Sixth generation (6G) communication systems are expected to enable new use cases such as ubiquitous connectivity (through non-terrestrial networks), industry automation, autonomous driving, and tactile internet/ mobile robots. New use cases bring their own issues of reliability, efficiency, security, and sustainability. An objective of this workshop is to understand the technology enablers for these new use cases and how India can lead the innovation of new technologies.”

The workshop is sponsored by the Department of Science and Technology, Govt. of India, the Ministry of Electronics and Information Technology, Govt. of India, Tejas Networks, Qualcomm India Pvt Ltd, and IEEE Communication Society (Delhi chapter).

24. Global Airlines Expect Record Passenger Flows in 2025

ET, 11 Dec. 2024

The global airline industry stands to earn $36.6 billion in net income in 2025, driven by a record 5.2 billion passengers taking to the skies, the industry’s top lobby group said in its annual forecast.

MELBOURNE, AUSTRALIA - JULY 20: Passengers line up for the Jetstar check in terminal service desk at Melbourne Airport on July 20, 2024 in Melbourne, Australia. A significant global outage affecting Microsoft services, particularly Microsoft 365, has caused widespread disruptions across various sectors, including airlines, banks, and health systems. The outage was attributed to a glitch in CrowdStrike's "Falcon Sensor" software, which impacted Windows systems, leading to thousands of flight cancellations and operational chaos in multiple industries. Microsoft has reported that the underlying cause of the outage has been fixed, but residual effects continue to impact some users as the company works on full recovery.

The outlook represents a 16% gain on 2024 figures. Profit margins for the industry will be 3.6%, higher than the 3.3% margins in 2024, the International Air Transport Association said on Wednesday. Lower oil prices and higher demand will drive profitability, while potential tariffs and trade wars by the incoming Trump administration could hurt the industry’s prospects, the industry group said. IATA also expects industry revenue to exceed $1 trillion for the first time in 2025.

“Airlines must continue to watch every cost and insist on similar efficiency across the supply chain — especially from our monopoly infrastructure suppliers who all too often let us down on performance and efficiency,” IATA’s Director General Willie Walsh said in the statement.

While the aviation industry has seen demand rebound sharply post pandemic, profit margins remain wafer thin. Airlines are struggling with supply chain disruptions that are delaying deliveries of newer, more fuel-efficient aircraft and keeping existing planes grounded for maintenance for longer.

North America remained the largest profit contributor to the global industry in 2024, though margins were at lower levels than pre-pandemic due to slower aircraft deliveries and higher costs particularly for low-cost carriers, IATA said. The Middle East recorded the strongest financial performance and was the only region where passenger yields jumped, thanks to strong demand for premium long-haul travel.

European airlines, in comparison, were hit with fleet groundings, rising wages, higher airport charges and taxes which took a toll on competitiveness in 2024, according to IATA. The group sees profitability improving in 2025 as low-cost carriers resume flying grounded aircraft. IATA said its outlook is subject to change should the Ukraine and Middle East wars worsen or oil prices fail to drop.

25. India Renewable Energy Capacity Growth: India’s renewable energy capacity logs 14.2% growth at 213.7 GW

ET Gov. 12 Dec. 2024

Solar power continues to lead, with installed capacity rising from 72.31 GW in 2023 to 94.17 GW in 2024, a robust growth of 30.2 per cent.

NEW DELHI: India’s total non-fossil fuel installed capacity reached 213.70 GW in November, marking an impressive 14.2 per cent growth from 187.05 GW in the same month last year, the government said on Wednesday.

Ministry of New and Renewable Energy (MNRE) reported significant progress in India’s renewable energy sector from November 2023 to November 2024, underscoring the country’s commitment to achieving its clean energy targets in line with the goals set by Prime Minister Narendra Modi.

Meanwhile, the total non-fossil fuel capacity, which includes both installed and pipeline projects, surged to 472.90 GW, a substantial 28.5 per cent increase from the previous year’s 368.15 GW.

During FY24-25, a total of 14.94 GW of new RE capacity was added till November 2024, nearly doubling the 7.54 GW added during the same period in FY23-24, according to the Ministry of New and Renewable Energy.

In November 2024 alone, 2.3 GW of new capacity was added— marking a dramatic fourfold increase from the 566.06 MW added in November 2023.

India’s renewable energy sector has seen widespread growth across all major categories.

Solar power continues to lead, with installed capacity rising from 72.31 GW in 2023 to 94.17 GW in 2024, a robust growth of 30.2 per cent.

Including pipeline projects, total solar capacity surged by 52.7 per cent, reaching 261.15 GW in 2024, compared to 171.10 GW in 2023. Wind power also made notable contributions, with installed capacity rising from 44.56 GW in 2023 to 47.96 GW in 2024, reflecting a growth of 7.6 per cent.

According to the ministry, total wind capacity, including pipeline projects, increased by 17.4 per cent, from 63.41 GW in 2023 to 74.44 GW in 2024.

Bioenergy and hydroelectric projects also made steady contributions to the renewable energy mix. Bioenergy capacity rose from 10.84 GW in 2023 to 11.34 GW in 2024, reflecting a growth of 4.6 per cent. Small hydro projects saw a slight increase, from 4.99 GW in 2023 to 5.08 GW in 2024, with total capacity, including pipeline projects, reaching 5.54 GW.

Large hydroelectric projects grew incrementally, with installed capacity rising from 46.88 GW in 2023 to 46.97 GW in 2024, and total capacity, including pipeline projects, increasing to 67.02 GW from 64.85 GW in the previous year.

In nuclear energy, installed nuclear capacity grew from 7.48 GW in 2023 to 8.18 GW in 2024, while the total capacity, including pipeline projects, remained steady at 22.48GW.

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AAPI

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Tuesday, 17 December 2024

Newsletter, December 2024

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

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NEWSLETTER, December 2024

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- Agriculture, Fishing and Rural Development

- Industry and Manufacture

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

India and the World