AAPI: January 2025

DELHI, January 2025

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Logistics Sector Reforms India: ADB sanctions $350 million policy-based loan for improving manufacturing sector's supply chains
22. Steps to inclusion: Making accessibility a reality in the world’s largest democracy
23. India’s single malts seek to be more than just a drink – they want a label.
24. Organic Goods Exports can Hit ₹20K cr in 3 Yrs: Goyal
25. India can achieve $100 bn export target in F&B, agriculture and marine products in 5 years: Piyush Goyal

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DELHI, January 2025

NEWSLETTER, January 2025

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1. Dr Manmohan Singh (1932-2024): The economist who would be PM

ET, 27 Dec. 2024

Former Prime Minister Manmohan Singh, who died at 92 on Thursday night, was a man of many legacies in a political firmament in which far more entrenched career politicians struggle to make a mark.

Reuters

Former Prime Minister Manmohan Singh, who died at 92 on Thursday night, was a man of many legacies in a political firmament in which far more entrenched career politicians struggle to make a mark. He first secured his spot in India’s political map as executor—under the stewardship of PV Narasimha Rao—of the landmark economic liberalisation programme that broke the shackles of the licence raj and opened up India’s socialist-oriented economic policies to the free market, ushering in the era of rising economic growth and the emergence of the aspirational Indian. Those policies would ultimately result in India becoming one of the world’s fastest-growing major economies. He was finance minister in the Rao government from 1991 to 1996, having been RBI governor in 1982- 85 as well as CEA in the 1970s. He would go on to serve as PM from 2004 to 2014.

Singh was the first Indian technocrat to reach the pinnacle of power in the political world, becoming the longest-serving Congress Prime Minister from outside the Nehru-Gandhi family, that too with two consecutive full terms, something that no one had achieved after Jawaharlal Nehru, before Narendra Modi equalled the first PM’s three consecutive electoral victories this year.

What many dyed-in-the-wool politicians admired, and envied, was what they saw as his amazing fate line, packed with serial lucky breaks that took him to the top political office of the country, without having any hands-on experience in realpolitik, despite being a Rajya Sabha and CWC member. He also didn’t enjoy mass appeal or have a social base. In fact, he lost the only election he contested—he came to parliament through the Rajya Sabha.

His entry into the political arena came as finance minister after Rao’s first choice for the job, ex-RBI governor IG Patel, declined the post. Singh’s biggest break, becoming Prime Minister, came after the triumphant UPA-Left alliance’s unanimous choice Sonia Gandhi turned down the top post in 2004. One can safely say that Singh was a leader who often had greatness thrust upon him.

The dominant view then, and now, was that the real reason that made Sonia Gandhi nominated Singh as Prime Minister—besides his stature, clean image, decency and administrative experience—was his absolute trustworthiness due to his total dependence on her in the Congress party’s world of intrigue.

If not Singh, Sonia Gandhi might have had to pick from the likes of seasoned and skilful politicians such as Pranab Mukherjee or Arjun Singh. Having experienced how another skilled Congress ‘insider’ Narasimha Rao had completely taken control of the government and party as Prime Minister, Sonia Gandhi would not have risked another spell of isolation under a far more political PM, more so when son Rahul Gandhi’s grooming for succession had started.

While much was later written about how Sonia Gandhi and those around her in the Congress had tried to remote-control Prime Minister Manmohan Singh, there is unanimous agreement among politicians that Singh wouldn’t have survived as the PM but for the unflinching support she extended to him. No one would have understood that better than Singh himself. Many were of the view that, having been a trained bureaucrat, expert in the craft of surviving through pragmatic flexibility, Prime Minister Singh would have been prepared to make concessions, including sharing political authority.

That is why, many Congress and UPA leaders of that time felt Singh did not resist when a parallel super-body was erected—the Sonia Gandhi-led National Advisory Council. Or, when most of his ministerial choices and their portfolios were decided by the Sonia/Congress establishment. That was also the reason then ‘heir apparent’ Rahul Gandhi could get away with tearing up the ordinance protecting legislators from being disqualified without inviting Prime Ministerial ire. That was the price a nominated PM had to pay—merit and excellence notwithstanding.

Still, he showed his resilience and determination in the way he handled the India-US civil nuclear deal, braving the scepticism of the Congress leadership, the dogmatic opposition of the Left and even facing a touch-and-go trust vote that saw the same party establishment unleash every weapon in its arsenal to prevent the government from falling.

The clinching of the nuclear deal would have been the high point of Singh’s Prime Ministership—even greater than the deft manner in which he and his team helped India remain mostly unscathed through the global financial crisis of 2007-8 and its aftermath—but for the dramatic political and administrative meltdown of the UPA-2 in the wake of serial corruption charges. That marred the record of Singh’s Prime Ministership and the UPA government, despite their many creditable achievements, many of which have stood the test of time and been adopted by his successor.

The Anna Hazare-led anti-corruption movement laid the ground for the resurgence of the BJP under Narendra Modi ahead of the 2014 Lok Sabha polls, with the NDA and its allies decimating the Congress coalition. That watershed was also testimony to the dramatic mood swing in the Indian middle class, which had once hailed Singh as their hero.

Singh’s long and illustrious career was also the dramatic story of a lower-middle class village child scaling the glittering heights on the strength of his merit, grit and determination. A story that will continue to fire many a dream of India’s aspiring youth, beyond the ups and downs of Singh’s political life.

2. Integrating the poor into economic mainstream: Policies & technologies for financial inclusion

ET Gov. 26 Dec. 2024

"How to better engage the women in rural areas in inclusion, access and usage–this is a key issue for which there are no easy answers": Jason Lamb, Deputy Director, Bill & Melinda Gates Foundation.

Pradhan Mantri Jan Dhan Yojana (PMJDY), which is the national mission for financial conclusion, completed a decade of successful implementation in August 2024. Describing the success of the initiative, Finance Minister Nirmala Sitharaman said:

“The success of the initiative is reflected in 53 crore people having been brought into the formal banking system through the opening of Jan Dhan Accounts. These bank accounts have garnered a deposit balance of ₹2.3 lakh crore, and resulted in the issuance of over 36 crore free-of-cost RuPay cards, which also provide for a ₹2 lakh accident insurance cover. Notably, there are no account opening fees or maintenance charges and no requirement to maintain a minimum balance.”

The Finance Minister also noted that 67% of the accounts have been opened in rural or semi-urban areas, and 55% of accounts have been opened by women.

On the sidelines of Global Inclusive Finance Summit 2024, hosted at Hotel Ashok, New Delhi, ETGovernment had a conversation with Jason Lamb, Deputy Director, Bill & Melinda Gates Foundation. What follows are the excerpts from the conversation between Jason Lamb and Anoop Verma, Editor-News, ETGovernment, The Economic Times:

Edited excerpts:

How do you see the role played by the Aadhar national ID system in achieving financial inclusion?

The key issue in financial inclusion is the national ID. India has made a considerable headway in achieving financial inclusion in the last few years because this country has already solved the problem of national ID, through the Aadhaar system. Today several other countries are coming to India to find out how the national ID system works. Ethiopia, Tanzania, Nigeria, Indonesia and several other countries have visited India to learn about the Aadhaar system. The core issue of national ID has to be solved before a nation can start tackling the problem of financial inclusion, and providing benefits for education and healthcare to all sections of the society.

Along with the national ID a country also needs the infrastructure for enabling digital payments for enabling direct transfer of benefits to the citizens. How do you see India’s achievements in this area?

India has done a remarkable job in developing interoperable infrastructure for digital payments. Countries in Africa and other parts of the world had been wondering how to provide benefits directly to people who lacked access to bank accounts. For these issues, India has discovered and implemented the most cost-effective and efficient solutions. Through the Pradhan Mantri Jan Dhan Yojana bank accounts have been opened for people who were earlier financially excluded. Today people from all walks of life in India are using UPI to make small payments – this is a major step towards financial inclusion.

The full benefits of financial inclusion initiatives are yet to reach the rural areas. According to reports, a significant part of the female population in the rural areas continues to be fully or partially financially excluded. How can we make progress in bringing the benefits of financial inclusion to the women in rural areas?

How to better engage the women in rural areas in inclusion, access and usage–this is a key issue for which there are no easy answers. India is actively working in this area, and other countries are also working. Various government and private organizations are trying to figure out how they can take financial inclusion to the rural areas to empower women. A part of the problem can be related to financial literacy – I say financial literacy but it can also be an issue of comfort and trust. We have to make the women in the rural areas comfortable with not just banking but also with digital payment systems. The women self help groups which are active in the rural areas can play a major role. They can provide financial training to the women, making them feel comfortable with banking and financial technologies. Using the less formal channels like the self-help groups to bring women into the formal channel of modern finance might be the way forward. In India, several self-help groups are known to be doing exemplary work.

Is lack of education an issue? Can we improve financial inclusion in rural areas by providing financial education to rural women?

Women should be as educated as men, at least in the areas of primary and secondary education. Along with imparting traditional knowledge, the schools should be providing some kind of training in finance management. Once the younger women in the rural areas become trained in finance, they can transfer their knowledge to their mother and grandmother. Since the knowledge will pass through the trusted channel of the family network–from daughter to mother and grandmother–it will be accepted by the older generation. This will make the women in the family empowered to make financial decisions. The challenge in the rural areas is also related to enabling the rural populations to see value in formal banking and digital transactions. Currently, they place most of their value on cash. They have to realize that by engaging in formal banking and digital transactions, they can gain access to digital credit and other facilities which will improve their financial security.

Bill & Melinda Gates Foundation is the most influential philanthropic institution in the world. You are doing exemplary work in education, healthcare and several other areas. What kind of work are you doing in the area of financial inclusion?

The financial inclusion team at the Bill & Melinda Gates Foundation has been around since 2006. We have been working in the areas of infrastructure and technology. Digital ID, interoperable inclusive payment systems, and other infrastructure needed for digital payments have been an area of focus for us. We work with the government for resolving policy issues and with the private sector for technology and infrastructure issues. We also work with self-help groups which are active in the rural areas.

As you pointed out, the Bill & Melinda Gates Foundation has been working in the area of digital transactions for many years. What is the level of digital transactions that you think is achievable in today’s world?

At the Bill & Melinda Gates Foundation, we currently hold the objective of achieving 80% digital transactions. We didn’t go up to 100% because that is not realistic. Even in developed countries, you don’t have 100% digital transactions. There are elderly people who do not transact via digital systems for various reasons. Some youngsters also prefer cash.

The G20 document prepared by the World Bank lauded the role that India’s Digital Public Infrastructure (DPI) is playing in financial inclusion. How do you view the role of DPI in inclusive finance?

India’s DPI is playing a critical role in achieving the vision of financial inclusion. When India was hosting the G20 Summit, DPI was one of the signature topics. The Bill & Melinda Gates Foundation was deeply involved in supporting the message regarding the global value of India’s DPI. The Foundation is also supporting MOSIP, which is an open-source technology to enable countries to build their own national Aadhaar or national identity systems. Several countries, including Morocco, Ethiopia, Nigeria and Philippines, are using MOSIP to create their Aadhaar-like national ID system. Tanzania is currently examining MOSIP. The World Bank is supporting the Digital ID revolution by providing funding for such initiatives in various countries.

3. Mukesh Ambani 3rd Largest Economy: Mukesh Ambani believes India can become the third largest economy in the world in ten years

ET Gov. 28 Dec. 2024, PTI

The richest Indian saw gaming as the next big gamechanger as it will be bigger than music, movies and TV shows all put together.

With mobile networks better or at par with anywhere else in the world, India has an opportunity to become a 'premier digital society', billionaire Mukesh Ambani said on Monday as he saw the country becoming the third world's largest economy within the next decade.

Speaking at a fireside chat with Microsoft CEO Satya Nadella, he said the big change driving this transformation was the deepening of mobile networks which were working at a much faster pace than before.

"I can easily say that the mobile networks in India now are better or at par with anywhere else in the world," he said. "The opportunity that we have for India, really, is the opportunity to become the premier digital society in the world."

India, he said, has all the components in place to "grow and march forward".

"I have no doubt in my mind that we will become among the top three economies in the world," he said. "We can argue about whether it will happen in 5 years or 10 years but it's going to happen, and we will be in the top three economies in the world."

When that happens, he wondered: "Will we be the most technologically enabled society? Will we be having all our development enabled by all the tools of technology? Can we really be a pacesetter in terms of using all technology?"

India became the world's fifth-largest economy last year, according to IMF. When ranked by nominal GDP, the country leapfrogged France and the UK and now ranks behind the US, China, Japan, and Germany.

India's GDP growth has been among the highest in the world in the past decade - regularly achieving annual growth of between 6-7 per cent.

When Nadella joined Microsoft in 1992, the Indian economy was USD 300 billion. "Today, India is USD 3 trillion," said Ambani, Chairman of Reliance Industries. "And fundamentally, this whole progress, in a certain way, has happened on the back of technology."

In the early days, it was Tata Consultancy Services and Infosys which drove technology which kick-started the financial and economic reforms, he said. "It was supercharged in 2014 when Prime Minister (Narendra Modi) gave us the vision of Digital India."

What followed was for everyone to see.

"I was privileged to play a very small role in it, in terms of with the launch of Jio," he said adding that prior to the launch of Jio in 2016, average internet access speed was 256 kbps and post Jio is now 21 mbps on mobile data in every single village in India.

"The pre-Jio, price of data in this country was between Rs 300 and 500 per GB. And for the poorest of poor people who use 2G, the prices were as high as Rs 10,000 a GB. Post Jio, the price is between Rs 12 and Rs 14 a GB," he said adding 380 million customers have migrated to 4G technology on Jio platform in the last three years.

"We just introduced UPI and did digitisation in December. We had 100 per cent growth and total UPI transactions in this country were Rs 2 lakh crore," he said. "We are accelerating and we are just at the beginning of this whole journey."

The richest Indian saw gaming as the next big gamechanger as it will be bigger than music, movies and TV shows all put together.

He said technology presents an opportunity to transform India.

"We in India have the opportunity to become the premier digital society," he stated. "The next generation will see a very different India than what you (Nadella) and I have grown up in."

Referring to Donald Trump's visit, he said the US President will see "in 2020 a very different from the India that neither President Carter saw nor (President) Bill Clinton saw or even Barak Obama."

Millions who came on the street to welcome Trump have their own personal experience of strong enough networks on their mobile phones, he said adding the construction of the world's biggest cricket stadium is an example of infrastructure being created.

"The stadium in terms of digital is better than any other place in the world," he said.

Ambani said Reliance was founded by his father Dhirubhai as a start-up five decades ago with just a table and a chair and Rs 1,000 in capital. It rose to first become a micro-enterprise and then to small industry and now a large enterprise.

"Why I'm saying this is fundamentally to just drive the point that every small business and entrepreneur has the potential in India to become a Dhirubhai Ambani or Bill Gates. And that is the power, that is what differentiates India, from the rest of the world," he said.

"I think that the entrepreneurial power that we have at the grassroots is enormous."

Small and medium enterprises provide employment to 70 per cent of Indians and drive 40 per cent of the country's exports.

"And they are critical to all the economic activity that we see. They have had done this, again, with zero technical enablements and adoption. So the opportunity there is to really go from low technology, low digitisation, and really to adopt" technology to really propel India forward, he said.

He praised Nadella for his leadership at Microsoft that has made every Indian "very, very proud", saying his style of empathy and that of partnerships, building trusts and relationships as also considering every mistake as a learning opportunity and believing that its people who are the strength of the organisation and not the profits or products, inspired him.

4. Minati Mohapatra Cycling Velodrome inaugurated at KIIT-KISS campus by Union Minister Mansukh Mandaviya

ET Gov. 10 Jan. 2025

The velodrome has been named in honor of Minati Mohapatra – Odisha’s first Arjuna Awardee in cycling.

BHUBANESWAR: The Minati Mohapatra Cycling Velodrome was inaugurated at the KIIT-KISS campus by the Union Minister of Youth Affairs and Sports, Mansukh Mandaviya on Wednesday. The velodrome, named in honor of Minati Mohapatra – Odisha’s first Arjuna Awardee in cycling.

Inaugurating the Velodrome, the Union minister said, "What I witnessed aligns with the dream of Prime Minister Narendra Modi – a nation where education and sports go hand in hand.”

Quoting Acharya Chanakya, the minister emphasized the importance of education in shaping a nation’s future. “I am satisfied that the country’s future is in the capable hands of educationists like Dr Samanta. KIIT, KISS, and KIMS are nurturing students who will grow into responsible citizens. Wherever I go, I will share the best practices I observed here,” Mandaviya added.

Dr Samanta, Founder of KIIT, KISS, and KIMS, expressed his gratitude for the minister’s visit and highlighted plans to double the sports infrastructure at KIIT and KISS in the coming years. “With the minister’s blessings, we aim to expand our facilities further and provide more opportunities for budding athletes,” he remarked.

Maninder Pal Singh, Secretary General of the Cycling Federation of India, lauded the minister’s passion for sports. “The minister is a cycling enthusiast himself, and his contribution to promoting sports across the country is remarkable,” he said.

Minati Mohapatra, visibly moved by the honour, expressed her gratitude. “I am speechless. People say Dr. Samanta is like a god to us. This is the greatest honor of my life,” she said.

KIIT Vice Chancellor Prof. Saranjit Singh highlighted the minister’s achievements during his tenure as Union Health Minister, and KISS Vice Chancellor Prof. Deepak Kumar Behera delivered the vote of thanks.

5. India Needs New Institutions to Boost Agriculture

Rural Voice, 2 Jan. 2025, Unupom Kausik

Even though the country is a leading agricultural exporter, there is huge gap between what it produces and what its real potential is. The country has seen impressive growth in agricultural production over the years. In terms of GDP, it has expanded from about US$25 billion in the early 1970s to over US$630 billion by 2024.

The agricultural sector is a cornerstone of Indian economy, contributing approximately 18% to the Gross Domestic Product (GDP) and employing 45% of the national workforce. The country ranks 8th among the world’s top agricultural exporters with a 2.33% share in global agricultural exports. Despite this, India’s agri-tech market, valued at US$ 24 billion, remains largely untapped with only 1.5% penetration.

Indian agriculture is characterized by a diverse agro-ecological landscape, and is in transition from traditional to modern farming practices with a growing focus on agro-tech and digital solutions. The country has seen impressive growth in agricultural production over the years. In terms of GDP, it has expanded from about US$25 billion in the early 1970s to over US$630 billion by 2024. This growth has been driven by high-value segments such as horticulture, dairy, poultry, and inland aquaculture.

Success stories

There are many success stories in Indian agriculture such as the Green Revolution which gave us food self-sufficiency at the national level followed by the White Revolution leading to significant increase in milk production. The most recent one is horticulture boom which has made India a major producer of fruits and vegetables.

Another significant feature of this growth story is the rise of agritech startups. Over 1,000 agritech startups have emerged between 2013 and 2020. All these success stories have had their anchor in some eponymous institutions such as ICAR, Food Corporation of India (with its public distribution system), AMUL/GCMMF, NDDB, Cotton Corporation of India and NABARD, among others.

Low farm productivity still a bane

These epochal developments overseen by such illustrious institutions brought us many successes such as increased food grain production, diversification of agricultural exports, self-sufficiency in many agri produce despite a steadily growing population and shrinking agricultural land due to diversion to non-agriculture land use.

Notwithstanding such significant achievements, some challenges remained such as low farm productivity compared to global standards, poor infrastructure and supply chain inefficiencies, global price volatility and market access issues, and effects of climate change on agriculture. Though investments in R&D have led to improved crop varieties, better farming techniques, and increased yields, there’s still a significant gap between India’s average yields and global yields. India’s average paddy yield, for instance, is 3,878 kg/ha compared to the world’s best yield of 10,386 kg/ha.

If these challenges are overcome, India has the potential to significantly increase its agricultural production. However, this could lead to surplus production in some commodities to exceed global trade volumes. For example, at world-best yields, India could potentially produce a surplus of more than 200 million metric tons of paddy, which can easily cover the entire world trade and address the issue of global hunger. Apparently, India's agricultural sector holds immense potential for export growth.

Growth drivers

Indian agriculture can be catapulted into higher orbits through creation of new and more relevant institutions for multiple but simultaneous objectives such as produce aggregation through cooperative ecosystems and Farmer Producer Organizations (FPOs), centers’ of excellence for demonstrating R&D for crop-specific productivity enhancement, public–private partnership for leveraging technology (AI, IoT, and remote sensing) for sustainable agriculture, and global consumer focused export institutions connecting farmers and world markets for building export competitiveness through value addition. Most important, the country needs an Indian Agriculture Council on the lines of GST Council for agricultural reforms and policy interventions.

Institutions designed for such objectives will bring the most required impetus to investment in the entire agriculture space and will lead to building of requisite physical, digital and human infrastructure for the creation of sustainable employment opportunities in rural areas, bridging the gap between rural and urban lifestyles and potential to become a leading food supplier to world markets.

Need for agricultural reforms

Agricultural reforms are crucial for addressing the challenges faced by the sector and unlocking its full potential. The key areas for reform include modernizing agricultural marketing systems, improving supply chain efficiency, encouraging private sector investment in agriculture, promoting sustainable farming practices, enhancing farmer’s access to credit and insurance. It is pertinent to mention here that the present government under the leadership of Prime Minister Narendra Modi is focused on this imperative and bringing out multitude of programmes, institutions, resources and legislative and executive reforms through a singularly aligned “ whole of the government approach”.

Key factors driving export potential:

Diverse agro-ecological zones: India's varied climate and geographical conditions allow for the production of a wide range of agricultural produce.
Growing global demand: Increasing global population and changing dietary preferences create opportunities for Indian agricultural exports.
Government Initiatives: India’s Agriculture Export Policy aims to double agricultural exports from US$ 30 plus billion to US$ 60 plus billion by 2022 and reach US$ 100 billion in the following years.
Technological Advancements: The rise of agri-tech startups and digital initiatives are enhancing productivity and quality in the agricultural sector.

Major export products and opportunities:

Rice: The largest exported agricultural product, contributing over 20% of total agriculture exports in 2022–23.
Marine products: Benefiting coastal states with exports valued at US$ 8.07 billion in 2022–23.
Coffee: Experiencing growth in exports, particularly in instant coffee and re-exports.
Fruits and vegetables: Potential for growth in exports of grapes, bananas, pomegranates, and processed products.
Value-added and organic products: Opportunity to increase the share of high-value and processed agricultural exports.

Challenges to address:

Infrastructure and logistics: Need for improved cold chain facilities, transportation, and export-oriented infrastructure.
Quality standards: Ensuring compliance with international quality and safety standards.
Value addition: Increasing the share of processed and value-added products in the export basket.
Market access: Addressing tariff and non-tariff barriers in potential export markets.

Dedicated institution in place

In order to address the challenges and tap the ever-growing world market, the government has set up the National Cooperative Export Limited (NCEL). The NCEL’s mandate is to boost agricultural exports. This dedicated institution can play a pivotal role in harnessing the export potential of India’s agricultural sector through cooperative efforts.

Here are the key areas where NCEL can contribute:

Aggregation of Produce: NCEL can help small and marginal farmers pool their resources and produce to achieve economies of scale for exports.
Quality Control and Standardization: Implement rigorous quality control measures to ensure that agricultural products meet international standards.
Market Intelligence: Provide member cooperatives with crucial information about global market trends, demand patterns, and export opportunities.
Capacity Building: Offer training and support to cooperatives in areas such as export procedures, documentation, and compliance with international regulations.
Brand Development: Create and promote a strong 'Cooperative India' brand for agricultural exports, emphasizing quality and sustainability.
Infrastructure Development: Collaborate with government initiatives like the Agriculture Infrastructure Fund to develop export-oriented infrastructure.
Technology Adoption: Facilitate the adoption of agri-tech solutions among member cooperatives to enhance productivity and quality.

Alignment with government initiatives

NCEL can work in tandem with various government programmes to boost agricultural exports:

Digital Agriculture Mission (DAM): Leverage digital technologies to improve export-oriented agricultural practices.
Agriculture Export Policy: Contribute to achieving the policy's objectives of doubling agricultural exports and diversifying the export basket.
Agriculture Infrastructure Fund (AIF): Utilize the fund to develop export-focused infrastructure like warehouses, processing units, and cold storage facilities.

Potential Impact of NCEL:

Increased farmer income: By facilitating exports, NCEL can help increase farmers' incomes by 25–35% through better price realization and market access.

Export growth: Contribute to the targeted growth of agricultural exports to US$ 60 plus billion and beyond.

Rural development: Boost rural economies by creating export-oriented value chains and employment opportunities.

Sustainable agriculture: Promote sustainable and organic farming practices to meet global demand for eco-friendly products.

In conclusion, NCEL has the potential to be a game-changer in India's agricultural export landscape by leveraging the power of cooperatives. By addressing key challenges and aligning with government initiatives, NCEL can play a crucial role in transforming India into a global agricultural export powerhouse while ensuring equitable benefits for farmers and rural communities.

(Unupom Kausik is Managing Director of National Coopaertive Export Limited)

- Agriculture, Fishing and Rural Development

6. From Vajpayee to Modi: Policies to transform agriculture, empower farmers, fuel economic growth

ET Gov. 26 Dec. 2024

Architect of India's transition into the 21st century: PM Modi hails Atal Bihari Vajpayee on his 100th birth anniversary

On December 25, as the nation honoured the 100th birth anniversary of former Prime Minister Atal Bihari Vajpayee, we were reminded of his visionary leadership that laid a strong foundation for agricultural and rural development in India.

His progressive policies were a testament to his unwavering commitment to empowering the backbone of our nation—our farmers and rural communities. Atal Bihari Vajpayee believed in the potential of rural India as a catalyst for the nation’s growth, and his legacy continues to inspire.

Carrying forward this vision, Prime Minister Narendra Modi has revolutionized the agricultural ecosystem over the last decade. Through bold initiatives and transformative policies, he has not only strengthened the sector but also ensured inclusivity, particularly focusing on women empowerment. Programs like the "Lakhpati Didi" initiative are uplifting millions of women, recognizing their pivotal role in driving India's economy.

On this path towards Viksit Bharat, the Modi government has significantly enhanced the budgetary support for agriculture, increasing it from Rs. 23,000 crores during the UPA era to a staggering Rs. 1.27 lakh crores today. The provision of Rs. 1.94 lakh crores in subsidies across 45 programs further underscores the government's commitment to making agriculture sustainable, resilient, and prosperous for every farmer.

Atal Bihari Vajpayee’s dreams of a robust, self-reliant rural India are being realized, one step at a time, as the nation journeys steadfastly toward a brighter and more inclusive future.

When you walk through the vast expanse of India’s countryside, the sight of farmers tending to their fields with hope and determination is heartwarming. Farmers are not just the backbone of our nation; they are its beating heart, nurturing millions with their hard work. Yet, for decades, agriculture faced stagnation and neglect, leaving our farmers grappling with age-old challenges and unfulfilled promises.

Under the visionary leadership of Prime Minister Narendra Modi, a paradigm shift in agricultural policy and farmer welfare has been realized. PM Modi’s government, with its unwavering commitment, has transformed the sector by bridging the gap between farmers and opportunities, ensuring their prosperity, and placing their needs at the core of India’s development journey.

A Farmer-Centric Vision

PM Modi’s deep connection with rural India is reflected in his transformative policies aimed at empowering farmers. Recognizing that agriculture is not just a profession but a way of life, his government has championed policies that balance tradition with innovation.

Income Support and Welfare The flagship PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) scheme, which provides direct income support of ₹6,000 annually to farmers, has been a game-changer. Over ₹2.60 lakh crore has been disbursed to over 11 crore farmers since its launch, ensuring a safety net for small and marginal farmers.

Revolutionary Infrastructure Development The Agriculture Infrastructure Fund (AIF) is another testament to the Modi government’s forward-thinking approach. With an expanded scope to include community farming assets and processing units, the fund ensures that rural India thrives with robust, modern agricultural infrastructure.

Harnessing Technology: The Digital Agriculture Mission

The recently launched Digital Agriculture Mission is set to redefine farming in India. By integrating tools like the Agristack, Digital Public Infrastructure, and geospatial platforms, farmers now have access to reliable, real-time data on crop conditions, soil health, and market trends.

With the creation of nearly 30 lakh farmer IDs and the introduction of the Digital Crop Survey across 436 districts, India is poised to harness the power of data-driven farming to optimize yields and improve efficiency.

A Green Push with Natural and Sustainable FarmingThe National Mission on Natural Farming (NMNF) reflects PM Modi’s commitment to sustainability. Promoting organic and chemical-free farming practices, the scheme supports farmers in adopting eco-friendly techniques while reducing dependency on synthetic inputs.

The Voluntary Carbon Market (VCM) initiative further encourages sustainable agriculture, enabling farmers to earn additional income by adopting carbon-neutral practices.

Boosting Oilseed Production: A Step Towards Self-Reliance

The National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) is a strategic initiative to make India self-reliant in edible oil production. With a ₹10,103 crore outlay, this mission reflects the government’s vision of reducing import dependency while boosting domestic production and farmers' incomes.

Empowering Farmers with Innovation and Entrepreneurship

PM Modi's government has also championed agri-entrepreneurship, nurturing startups through initiatives like the Innovation and Agri-Entrepreneurship Development Programme under Rashtriya Krishi Vikas Yojana. Financial support, incubation, and technical expertise are being provided to young innovators to solve real-world agricultural challenges, ensuring that the sector stays future-ready.

The newly launched AgriSURE scheme is further fostering innovation by creating a robust funding ecosystem to support rural enterprises and high-impact activities in agriculture.

Localized Solutions for Global Challenges

Through Krishi Vigyan Kendras (KVKs) and other grassroots institutions, the Modi government is ensuring that modern farming techniques and innovative solutions reach every farmer. These centers are pivotal in enhancing productivity, encouraging sustainable practices, and building a resilient agricultural community.

A Bond Beyond Policies

PM Modi’s initiatives are not just about policies; they reflect a deep emotional connect with farmers. From his dialogues with farmers across India to his emphasis on listening to their challenges and aspirations, his approach demonstrates genuine empathy. Under his leadership, the government has not only addressed immediate concerns but also built a foundation for a future where farming is seen as a viable and respected livelihood.

Towards Viksit Bharat

The Modi government’s focus on agriculture goes beyond addressing rural issues—it is a strategic pillar of India's journey toward becoming a developed nation. A thriving agricultural sector ensures food security, generates rural employment, and contributes to India’s GDP growth.

With groundbreaking initiatives like the Clean Plant Programme to boost horticulture and the National Pest Surveillance System (NPSS) to safeguard crops, the government is paving the way for a resilient agricultural ecosystem. These programs are integral to achieving the vision of a self-reliant and globally competitive India.

Conclusion

Under PM Modi's leadership, his government has successfully transformed agriculture into a modern, dynamic sector that embraces technology, innovation, and sustainability. As we march toward the vision of Viksit Bharat, the Modi government’s commitment to the farming community remains steadfast, ensuring that every farmer is empowered to contribute to India’s development story.

This journey is not just about agricultural growth—it is about building a nation where every citizen prospers and thrives, ensuring that India’s farmers lead the way into a brighter, sustainable future.

(The author is National Spokesperson, BJP; Views are personal)

7. Redesigning Institutions for Betterment of Farmers

RuralVoice, Dec 30, 2024, T Nandakumar

Institutions have escaped close scrutiny, largely on account of their past success. The key institutions that helped farmers get to the high productivity curve are ICAR, Coop Credit Institutions, Irrigation Department, fertiliser companies( PSUs, COOPs and private) and the Food Corporation of India (FCI). These institutions worked together to address the acute problem of “food shortage” with singular focus.

The success of the Green Revolution is attributed to policy, infrastructure, inputs and institutions. Of these, policy and inputs are currently under scrutiny through the ‘sustainability lens’. Infrastructure continues to be a priority for investment. Institutions have escaped close scrutiny, largely on account of their past success. The key institutions that helped farmers get to the high productivity curve are ICAR, Coop Credit Institutions, Irrigation Department, fertiliser companies( PSUs, COOPs and private) and the Food Corporation of India (FCI). These institutions worked together to address the acute problem of “food shortage” with singular focus. Their mandate was clear: produce more food so that Indians do not have to depend on imports. They did achieve this goal and India today exports food.

Times have changed, so have climate, ecology and markets. Concerns about farming as an ecologically sustainable and economically viable activity have highlighted the need for immediate and long-term solutions. While policy options are being discussed across national and global platforms, institutional rebuilding appears to be in the back burner.

This paper attempts to point out a few key issues. The issue of institutional rebuilding requires a more comprehensive treatment and this article is intended only to provoke thinking and not to answer all the questions.

An important aspect to be remembered is that the word ‘institution’ does not necessarily mean ‘government institutions’ only. It includes all institutions, cooperatives, farmer organisations, NGOs, and private institutions. With this caveat, let me list a few issues.

First, take the most important one, ICAR: It has to its credit the huge contribution it made to achieving food self-sufficiency. It has also contributed significantly to the growth of horticulture, livestock and fisheries. ICAR’s efforts were focused primarily on increasing production and productivity and not so much either on farmers’ incomes or long-term sustainability. One has heard many arguments on how an increase in productivity will automatically lead to increase in farmers’ incomes. While productivity does contribute to increased incomes, the presumption that this is the only path to be followed is problematic. Also, R&D has remained largely focused on productivity gains, that too primarily of rice and wheat. While ICAR was focused, and rightly so, on R&D, technologies got developed in the private sector and these were readily available at a cost to companies and farmers. Most of the high-yielding or pest-resistant seeds in horticulture and oilseeds came from the private sector. Seeing the yield benefits, farmers lapped up the new technologies.

ICAR continued its work on traditional lines, while private sector made larger inroads. Nothing wrong there. But ICAR, as the largest public-funded research programme for agriculture in the country, has to take the new challenges onboard and focus on the following: (1) Increasing farmers’ incomes not only by increasing productivity but also by finding ways to reduce costs and increase value, (2) conduct research and education on natural farming methods and scientifically validate the processes for adoption by farmers, (3) conduct research on sustainable farming and climate resilience, and (4) restructure Krishi Vigyan Kendras as ‘local problem solvers’. The list can be longer, but this is the minimum.

Second, agricultural extension systems: These have continued to focus on rice and wheat based on Green Revolution methods. Climate change, growth in demand for fruits and vegetables, egg and poultry, and dairy products demand a diverse and more knowledgeable extension system. Neither reach nor technical competence has been expanded to cover these new demands. Private companies and their agents have occupied this space. Of late, startups have also entered the market. Farmers have shown an inclination to pay for good quality service provided it helps them earn more. Start-ups have realised this and have entered areas like weather forecasting at the micro-climate level, nutrient evaluation of plants, market and financial information, to help farmers navigate the space better.

Third, credit institutions: Well- established cooperative credit system collapsed thanks mainly to mismanagement and defaults. The burden of providing agricultural credit got shifted to commercial banks, which had by then established a large network of rural branches. With this, whatever remained of the cooperative credit system also collapsed. An attempt to revive the system is on its way. In spite of the shrinking of cooperative credit, total short-term credit availability is on the rise. However, the norms and the financial instruments have remained in the rigid rice–wheat format, thereby ignoring the demands of the faster growing sectors like horticulture, poultry, etc. A few innovative private financial institutions have designed better financial instruments with flexible schedules of disbursements and scientific monitoring parameters. The credit system largely based on public sector banks, calls for a major innovation.

Fourth, farmers’ organisations: The failure of the conventional cooperative structure in the rural economy, primarily due to elite and political capture, mismanagement, non-participation of farmer members and interference by the governments led to fresh thinking on redesigning farmer organisations. The idea of farmer producer companies (FPCs), as an entity registered under the Companies Act was conceived and given effect to. This structure allowed members to get out of the stranglehold of the state governments and establish private companies of their own. A major plan to register such 10,000 FPCs was also rolled out. Reports indicate the existence of more than 40,000 FPCs. How many of them will survive after the ‘subsidy period’ is over remains to be seen.

While FPCs were being encouraged, the 97th Constitutional Amendment provided more operational freedom to cooperatives as well. The government created three national-level cooperatives recently for organic agriculture, exports and seeds. Their performances are yet to be ascertained. Since these three are not ‘ground up’ institutions like Amul, their efficacy in bringing real value to the farmers remains to be seen. Lessons should have been learnt from the Amul model and the self-help group model, both built from the ground up and supported by a federation or Rural Livelihood Missions at the top. Building effective farmer organisations as business organisations in an enabling policy environment is key to any attempt at increasing the income of farmers. One important aspect of creating farmers’ institutions is providing flexibility to connect with the market either through private channels or through their own federations and not stick to any prescribed format. This would lead to market reforms which will benefit farmers in the long run.

Fifth, an ecosystem for start-ups in agriculture: A few start-ups in ag-tech, fintech and food-tech have shown promising results. There exist a few hurdles in the regulatory and policy environments which need to be addressed. The government needs to consider start-ups as their partners in delivering services effectively to farmers, without being obstructionist.

Sixth, markets and institutions: The first institution that comes to mind is the APMC. While I believe that regulated markets are important, APMCs have deviated significantly from their original purpose and design. They should be reformed to become enablers than ‘strangulating market institutions’ and they should be freed from the clutches of traders and middlemen to become farmer-owned and -controlled organisations. FCI is another large institution which is responsible for procurement of food grains. Considering the size and complexity of its operations in procurement and distribution across the country, it has done a good job, but not without logistical problems.

Nimble institutions, rooted in local geographies, are ideally suited for a country like India. However, ‘regionalising’ and decentralising FCI is no ordinary task. The planning for such a transformation has to be meticulous and aligned to the overall objectives. Many states have their own marketing federations which are mostly ineffective. These require a ‘creative destruction’ to allow setting up of new market-savvy institutions. In this context, NAFED will also have to reinvent itself and be more market savvy and not restrict itself to MSP purchases.

Seventh, private institutions: There are a number of private ‘institutions’ which impact agriculture and farmers. There are the conventional seed and fertiliser associations which are well organised to take care of the business interests of their members. It will do them a lot of good if they realize that farmers are their main clients and their survival depends on the decisions farmers make. Their ‘connect’ with farmers needs to be built on ‘trust’. Probably the fault lies with farmers’ organisations as well since they have not engaged in continuous and meaningful dialogues with them. There are charitable organisations, NGOs, and academic institutions, which work on farmer issues. They work in small silos depending on their interest and funding. The work of these institutions needs to be collated and made available to farmers. The list is long.

My short point is that new challenges require a new ecosystem. Governments should create such an ecosystem where stakeholders can work together with mutual trust and provide better services to farmers. We need to get the institutional architecture right!

(The writer is former Secretary, Agriculture and Food, Government of India)

8. India Informal Sector Growth: Number of firms, jobs in India’s informal sector clock double-digit growth

ET Gov. 26 Dec. 2024, iANS

This significant increase highlights consistent sectoral expansion and reinforces the sector's critical role in driving the overall growth of the unincorporated sector.

NEW DELHI: The estimated number of establishments in India’s unincorporated sector recorded a robust 12.84 per cent growth during October 2023–September 2024, compared to the same period of the previous year, according to the annual survey of the Ministry of Statistics released on Tuesday.

Similarly, the total estimated employment in the sector showed a double-digit growth of 10.01 per cent during this period over the previous year while Gross Value Added (GVA) jumped by 16.52 per cent at current prices.

The Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24 shows that the total number of establishments in the unincorporated sector increased substantially from 6.50 crore in 2022-23 to 7.34 crore in 2023-24.

Among the broad sectors covered, the number of establishments in the "Other Services" sector recorded a growth of 23.55 per cent, followed by a 13 per cent increase witnessed by the manufacturing sector.

This significant increase highlights consistent sectoral expansion and reinforces the sector's critical role in driving the overall growth of the unincorporated sector.

The sector employed more than 12 crore workers between October 2023 and September 2024, marking an increase of more than one crore workers from 2022-23 and reflecting robust labour market growth.

Among the broad activities, "Other Services" sector showed the highest annual growth of 17.86 per cent, followed by 10.03 per cent by the manufacturing sector.

The unincorporated non-agricultural sector plays an important role in the Indian economy contributing significantly to employment, Gross Domestic Product and the overall socio-economic landscape. This sector not only sustains livelihoods for millions but also acts as a backbone for the incorporated sector by supplying goods and services, reinforcing its role in the domestic value chain.

The ASUSE is carried out with the primary objective of measuring various economic and operational characteristics of unincorporated non-agricultural establishments in manufacturing, trade and other services sectors (excluding construction). The survey collects data on various economic characteristics of this sector including the number of workers, GVA, emoluments paid, fixed assets owned, and outstanding loans, besides, different types of operational characteristics such as type of ownership, nature of operation, registration status and use of ICT.

The data serves as a key input for policymaking, supporting National Accounts Statistics, fulfilling the requirements of ministries such as the Ministry of Micro, Small and Medium Enterprise (MSME), Textiles, Labour & Employment, and empowering stakeholders to make informed, data-driven decisions.

9. Farmers Borrowing More from Banks and are Creditworthy

ET, 26 Dec. 2024

Bad loans from agricultural lending have decreased by 2-4 percentage points across bank groups between FY20 and FY24. This is despite farmers increasingly borrowing from the formal sector.

Outstanding agricultural loans rose faster than corporate loans at an average rate of 15.2% after the Covid period compared to a contraction or a single digit annual growth in corporate loans during the pandemic.

The number of farmers’ accounts opting for credit through institutional sources increased by 381 lakh from March 2020 to March 2024. A large number of urban labourers moved back to their rural homes postCovid, fostering growth in agricultural activities.

According to the finance ministry’s replies to questions raised in the Lok Sabha, decreasing nonperforming assets during this period indicates an improvement in farmers’ repaying capacity.

The various schemes/ programmes of the Union Government, such as Kisan Credit Card, PM KISAN, and PMFBY, are designed to increase the welfare of farmers by increasing production, remunerative returns and income support to farmers.

Under the PM KISAN scheme, income support of `6,000 per year in three equal instalments will be provided to all land-holding farmer families. The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme integrating multiple stakeholders on a single platform.

10. Centre keen to promote traditional crop varieties for climate-resilient agriculture: Secy Devesh Chaturvedi

ET Gov. 28 Dec. 2024

NEW DELHI: The government is keen to promote traditional crop varieties for resilient agriculture and horticulture in the country to tackle the vulnerabilities of climate change, Union Agriculture Secretary Devesh Chaturvedi said on Thursday.

Addressing the workshop on "Reviving Agro-Biodiversity in Rainfed Areas through Traditional Varieties for Climate-Resilient Agriculture," he said that the Ministry is keen to promote traditional varieties through various schemes related to agriculture and horticulture, such as NMNF, Farmers' Producer Organisations (FPOs), Seed Development programmes and the NFSM.

He pointed out that traditional varieties have unique traits such as better taste, aroma, colour, cooking quality, and nutritional richness. These varieties should be grown in clusters and marketed for high-price realisation as there are buyers who prefer such traits, he added.

With 61 per cent of India’s farmers relying on rainfed agriculture across 50 per cent of the country’s land, the workshop highlighted the crucial role of traditional varieties in sustaining these systems.

Champion farmers’, seed saviours, and state representatives, from 10 states including Tamil Nadu and Odisha, displayed the indigenous seeds and shared their success and failure stories in conserving traditional varieties. The panel discussions emphasised the importance of the formalisation of community-managed seed systems, the need for government support in infrastructure and MSP, and the involvement of grassroots organisations in seed conservation efforts.

The workshop aimed to stimulate discussions and policy discourse on rainfed areas, as traditional varieties are disappearing while agriculture becomes more vulnerable in the context of climate change. All stakeholders agreed on the importance of conserving traditional varieties through use. There are examples from Tamil Nadu, West Bengal, and Odisha on how states are supporting reviving and mainstreaming diversity.

The experts agreed that an action plan and recommendations should be developed to submit to the Ministry of Agriculture and Farmers Welfare. Linking traditional varieties to the market and promoting them in natural farming schemes are also possible. The need to build on the strategies adopted for the promotion of millets by the government was also mentioned.

Rainfed areas, characterized by challenging conditions like low soil fertility and climate variability, depend heavily on informal seed systems—farmer-to-farmer exchanges and community-managed seed banks. Nearly half of India’s seed requirements are met through such systems, underscoring the need for their conservation and promotion.

- Industry and Manufacture

11. Diamond Workers Try their Hands at Jewellery Making

ET, 26 Dec. 2024

ETtech

Diamond cutting and polishing units in Surat are diversifying into jewellery manufacturing to stay afloat and tide over the current business uncertainty triggered by weak demand for natural diamonds in the global market, industry executives said. The move is also prompted by rising demand for studded and plain gold jewellery in India and overseas, they said.

“The units have gradually started doing job work in jewellery manufacturing. Jewellery demand is increasing both in India and abroad, therefore, they are trying to leverage this opportunity. In this way, the units in Surat are trying to engage workers,” said Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC).

Surat’s diamond industry currently employs about 800,000 workers. Recognising that demand for cut and polished diamonds is unlikely to revive soon, GJEPC started a jewellery-making course about six months ago.

Ramesh Zilriya, president of the Diamond Workers Union of Gujarat said, “Many workers and young youths have undertaken this course and have started jewellery making. They are mostly making studded jewellery.”

About a tenth of the 5,000 diamond cutting and polishing units in Surat have ventured into jewellery making in addition to diamond cutting and polishing.

Shah said cutting and polishing of diamonds is unlikely to generate profits for the industry as the key Chinese market is yet to open. Pandemic-induced uncertainties and the current economic downturn in China led to a realisation among consumers there that diamonds do not carry much resale value unlike gold.

“Even though the units have started manufacturing jewellery, they will still carry on with their traditional cutting and polishing activities,” he explained.

While exports of cut and polished diamonds fell by 19% during April-November 2024 from a year earlier, exports of plain gold jewellery rose 2.48% in the same period.

12. Startups Created 1.6 Million Jobs: DPIIT

ET, 26 Dec. 2024

Startups have created over 1.6 million jobs across the country, the Department for Promotion of Industry and Internal Trade (DPIIT) said Wednesday, adding that it has recognised 157,000 startups as of December 25.

It also said that India has more than 73,000 startups with at least one woman director.

“Startups have created over 1.6 million jobs across the country, demonstrating their role as significant employment generators,” the DPIIT said in a statement. The widespread availability of affordable internet, coupled with a young and dynamic workforce, has fuelled the growth of startups in diverse sectors, including fintech, edtech, health-tech and ecommerce, according to the department.

India’s journey towards becoming the world’s leading startup ecosystem is driven by a combination of demographic, economic and policy factors, it said. “India has emerged as one of the most vibrant startup ecosystems globally, earning its place as the third largest startup hub,” DPIIT said, adding that with over 100 unicorns, the Indian startup landscape is shaping the future of innovation and entrepreneurship.

Noting that companies like BYJU’S, Zomato, Ola and Nykaa have expanded their operations worldwide, showcasing India’s ability to scale and compete on the global stage, the DPIIT said: “The success of Indian-origin startups in Silicon Valley further highlights the country’s global influence”.

13. 73k Startups with a Woman Director in India

ET, 26 Dec. 2024, ANI

At least 157,066 startups have been recognised by Department for Promotion of Industry and Internal Trade (DPIIT) to date and 759,303 users are registered on the portal as on December 25, the government said on Wednesday.

The country now has more than 73,000 startups with at least one-woman director that have been recognised under the ‘Startup India Initiative’, representing nearly half of the 1,57,066 startups supported by the government, according to Ministry of Commerce and Industry.

The country has emerged as one of the most vibrant startup ecosystems globally, earning its place as the third largest startup hub. With over 100 unicorns, the Indian startup landscape is shaping the future of innovation and entrepreneurship.

“The entrepreneurial spirit in India has undergone a paradigm shift in the last decade. Cities like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR have become epicentres of innovation,” said the ministry.

This year, 13 new-age companies launched their initial public offerings (IPOs), as startups cumulatively raised more than Rs 29,200 crore from the stock market. Out of this, the fresh issue was nearly Rs 14,672 crore and Rs 14,574 crore Offer for Sale (OFS). Among 13 startup IPOs, 10 were mainboard and 3 were SME IPOs.

The widespread availability of affordable internet, coupled with a young and dynamic workforce, has fueled the growth of startups in diverse sectors, including fintech, edtech, health-tech, and e-commerce.

According to the ‘Indian Startup Ecosystem Report’ by Startup India, India’s startups have leveraged emerging technologies such as artificial intelligence (AI), blockchain, and IoT to solve local and global problems.

The flagship Startup India programme, launched in 2016, has been a cornerstone in this effort.

In addition, initiatives such as the Atal Innovation Mission (AIM) and the National Initiative for Developing and Harnessing Innovations (NIDHI) provide infrastructure and financial support to innovators.

Moreover, the Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH) scheme aims to support 300 software product startups over four years with an outlay of Rs 99 crore, providing funding up to Rs 40 lakh per startup through accelerators to scale their businesses.

14. Telangana to be developed as 'China plus alternative' in manufacturing: CM Revanth Reddy

ET Gov. 11 Jan. 2025

HYDERABAD: The Telangana government is planning to promote manufacturing in a big way between the Outer Ring Road and the proposed Regional Ring Road in Hyderabad and make the city emerge as the "China plus alternative" for the world in manufacturing, chief minister A. Revanth Reddy said on Friday.

The state government has decided to build 'Future City' here which would compete with top cities in the world like New York, London, Seoul and Dubai, he shared his vision with business leaders, he said while addressing the Confederation of Indian Industry (CII) National Council meeting held in Hyderabad.

"We want to build the greatest city in India. It will have only service sector," he said. The 'Future City' aims to be a pollution-free net zero city, he said.

The government is now replacing 3,200 state-run buses in Hyderabad with EV vehicles. Registration and road tax on electric vehicles has been removed, he said.

The work to rejuvenate the Musi river in Hyderabad has begun and the 55 km-long river flowing in the city would soon become clean, he said.

The government is planning a Regional Ring Road (RRR) on a 360 kms stretch and a regional ring rail around the RRR. Radial roads connecting the existing Outer Ring Road (ORR) and RRR are also being developed, he said.

Referring to the 'China Plus One strategy' of businesses diversifying manufacturing and supply chains beyond China, he said the government aims to make Hyderabad as the alternative to China.

"Between ORR and RRR there will be a manufacturing base... manufacturing and pharma, life sciences, aerospace, defence, EVs, solar. We have created a high focus on skills and job creation. My strategy is to make it China plus alternative for the world," he said.

As Telangana is a land-locked state, the government is planning to build a dry port with dedicated highway and rail links to the nearest Machilipatnam port in neighbouring Andhra Pradesh.

He added that government is creating an ecosystem with the best ease of doing business not only in India but also in the world.

Revanth Reddy also called upon the industry leaders to extend support to Skill University, Sports University and the proposed Future City.

He added that the state government is prioritising the electrification of public transportation, with plans to introduce a fleet of 3,200 electric buses to the Telangana State Road Transport Corporation (TGSRTC).

The state has exempted registration and road tax for electric vehicles (EVs) to incentivise electric vehicle adoption, CM asserted.

Telangana has already seen the fastest sales of electric vehicles in India, underscoring the state's commitment to a green future, he added.

CM further pointed out that another significant development in the pipeline is the Musi Rejuvenation Project. The initiative aims to restore and revitalise the Musi River, ensuring a freshwater flow along a 55 km stretch in Hyderabad, he added. The project is part of a larger strategy to secure Hyderabad's drinking water needs well into 2050, he stated.

15. AI, Manufacturing Poised to Transform India: Chandra

ET, 27 Dec. 2024

Advancements in artificial intelligence and manufacturing are set to shape India’s future and uplift communities as the country stands at a pivotal moment of economic opportunity and social progress, Tata Sons chairman N Chandrasekaran has said.

Agencies

“AI will play an increasingly transformative role, particularly in healthcare and mobility, delivering solutions that benefit humanity as a whole. At the same time, manufacturing is poised to drive India’s economic transformation,” Chandrasekaran said in his year-end message to Tata Group employees. “Global supply chains are shifting in India’s favour, with businesses prioritising resilience over efficiency. What once seemed like a short-term reaction to the pandemic has evolved into a long-term strategy, positioning India—with its vast talent pool and growing manufacturing capacity—at the centre of this global rebalancing,” he said.

As 2024 draws to a close, it leaves behind a world marked by geopolitical instability and cautious optimism in the macroeconomic outlook, he said. Conflicts in Ukraine, Gaza and Sudan have continued to cause humanitarian crises, while movements in countries like Bangladesh and South Korea shaped their political landscapes. “Amid these global disruptions, issues like immigration, technology and global trade remain at the forefront, with tariffs once again commanding leaders’ attention,” Chandrasekaran said.

He said the Tata Group is committed to creating 500,000 manufacturing jobs over the next five years and this ambition is fuelled by strategic investments in key facilities across India, including factories dedicated to producing batteries, semiconductors, electric vehicles, solar equipment and other critical hardware essential for tomorrow’s economy. “In addition to manufacturing, we aim to generate numerous service-oriented jobs in retail, technology, airlines and hospitality,” Chandrasekaran said. “This vision is not just about growth for our group or India; it represents hope for the one million young people entering our workforce every month,” he said. Manufacturing, with its multiplier effects, has the capacity to create indirect employment opportunities, particularly in high-impact sectors like semiconductor production, he added.

“Beyond these global events, 2024 holds a more personal significance for our group. This was the year we lost Ratan Tata—a visionary leader whose integrity, personality and strategic foresight defined our business for a generation. For me, personally, it was the loss of a cherished mentor and friend,” Chandrasekaran said. Under Tata’s encouragement, the group made bold strategic bets that are now bearing fruit, particularly in hi-tech industries and manufacturing, he said. “This year alone, we initiated construction on seven new manufacturing plants, including India’s first semiconductor fabrication facility in Dholera, Gujarat, and a semiconductor OSAT plant in Assam. Other milestones include an electronics assembly plant in Narasapura, Karnataka; an automotive plant in Panapakkam, Tamil Nadu; battery cell manufacturing factories in Sanand, Gujarat, and Somerset, UK; and the C295 final assembly line in Vadodara, Gujarat. Additionally, solar module production began in Tirunelveli, Tamil Nadu,” he said.

The group’s technology ventures achieved significant breakthroughs as well, he added. TCS and Tejas Networks delivered the first indigenous 4G mobile telecom stack for BSNL and are poised to drive advancements in 5G. Air India has successfully integrated four airlines into a unified group, while Indian Hotels’ Taj brand remains one of the strongest hotel brands globally. Also, Tata Motors introduced a new model for predicting the real-world range of electric vehicles, leveraging data from connected vehicles, traffic, infrastructure, and user driving patterns.

Global supply chains are shifting in India’s favour, with businesses prioritising resilience over efficiency. What once seemed like a short-term reaction to the pandemic has evolved into a long-term strategy

NCHANDRASEKARAN, Chairman, Tata Sons.

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

16. United Nations Sustainable Development Goals: Can Debt-for-Health swaps work? G20 explores innovative financing for developing countries

ET Gov. 24 Dec. 2024

The global debt reached a staggering $235 trillion in 2022, with low-income countries bearing the brunt of this burden. Debt-for-health swaps are regaining prominence as a potential solution to the dual crises of global debt and health inequities. The recent G20 Joint Finance and Health Ministerial Meeting in Rio de Janeiro highlighted the potential of these swaps as a tool to alleviate debt burdens while strengthening health systems.

Neoclassical economics suggests that high levels of national debt can have a "crowding out" effect. This means that increased government borrowing to finance the debt leads to higher interest rates, which in turn can reduce private investment and potentially slow economic growth. This leaves less money available for crucial social spending like healthcare, as the government prioritizes debt service payments.

Global debt and LDCs

The global debt reached a staggering $235 trillion in 2022, with low-income countries bearing the brunt of this burden. As per UNCTAD’s Least Developed Countries Report 2023, the total external debt of Least Developed Countries (LDCs) has quadrupled since 2006, reaching a record $570 billion in 2022.

This translates into a harsh reality: LDCs are now spending five times more on servicing their debt than they did a decade ago. Studies show that the debt burdens directly impact citizens' access to basic healthcare by reducing healthcare investments and limiting resources for essential services. This exacerbates health disparities and hinders overall health outcomes.

Across G20 health events, representatives from member states and international organizations are discussing the criticality of health expenditure for sustainable development outcomes. Given that global health challenges are on rise, and public capacity to invest remains severely constrained, there is a need to develop innovative options to address these challenges.

In order to further this goal, the G20 this year is proposing an instrument, namely debt-for-health (DfH) swaps to mobilize additional resources for health financing. This strategy seeks to enhance health services and alleviate debt burdens, especially in low-income countries. By reducing debt service obligations, the debt-for-health swaps can offer temporary relief and significantly benefit vulnerable populations and underserved areas.

Debt swaps have been used by official creditors since 1990 for claims covered by a restructuring agreement, on a bilateral and voluntary basis for low-and middle-income countries. These are often in the field of environmental conservation and climate change mitigation. For example, debt-for-nature swaps have been implemented to finance conservation projects while alleviating the debt burdens of participating countries.

In 2021, Belize swapped roughly $550 million of its debt for an obligation to spend money saving its oceans, and in 2023, Ecuador changed $1.6 billion in debt into a commitment to spend at least $12 million a year on park rangers, drones, and other measures to save the wildlife of the Galapagos islands.

Debt Swaps: A Potential Solution?

Here's how the approach works: a creditor nation cancels or reduces a portion of a developing country's debt in exchange for a commitment to invest the freed-up resources in specific health initiatives. This aligns with the economic principle of opportunity cost – the resources used for debt service could be better used for healthcare investments with long-term benefits. Statistics from UNCTAD show that over $7 billion in debt swaps have been completed since 1987, targeting various sectors including health, nature, and climate change.

A similar initiative namely Debt2Health (D2H) was launched by the Global Fund to fight TB, AIDS and Malaria in 2007. D2H turns debt repayments into funding for measurable activities with health impact through established health programmes at the Global Fund. Debtor countries agree to invest in additional Global Fund programmes to fight HIV/AIDS, tuberculosis and malaria, and/or promote resilient and sustainable systems for health and pandemic preparedness.

In return, a creditor country cancels (or donates) identified debt claims owed by the implementing debtor country. Debt converted into health investments can be counted as official development assistance (ODA) for creditor countries. This allows creditor nations to fulfill their ODA commitments while simultaneously promoting global health initiatives and alleviating the debt burden of developing countries.

Key Considerations

DfH swaps hold promise for several reasons. First, they create "fiscal space" for developing countries, allowing them to invest in areas like disease prevention, vaccination programs, and healthcare system improvements. This aligns with the United Nations' Sustainable Development Goals on health, particularly the goal of achieving universal health coverage.

However, there are some limitations. Political will and practical operational challenges may add to the transaction costs of implementing this program. The program design is also a key factor; experts emphasized the need for carefully designed swaps that consider each country's specific health needs and ensure the long-term sustainability of projects. Additionally, while debt swaps offer some relief, they are not a magic bullet for resolving full-blown debt crises.

Maximizing Impact: Collaboration, Transparency and Sustainability

Several key points emerged regarding maximizing the effectiveness of DfH swaps. Collaboration between relevant international organizations is crucial to avoid duplication of efforts and ensure efficient implementation.

Additionally, transparency – a core principle of good governance – is essential. Stakeholders, including debtor nations, creditor countries, and international organizations, should be involved in a transparent and inclusive process.

It's also crucial to ensure DfH swaps complement, not replace, efforts to build sustainable domestic financing for healthcare in developing countries. Additionally, the fiscal prudence of creditor nations needs careful consideration to avoid situations where forgiving debt undermines their own fiscal sustainability.

While some challenges exist, the focus on collaboration, transparency, and a sustainable approach offers promising avenues for scaling up this innovative approach. The collaboration between the finance and health sectors will be a key factor in determining the success of this tool.

(The authors are Joint Director and Deputy Director in Department of Economic Affairs, Ministry of Finance; Views expressed are personal)

17. Year-End Review: India makes unprecedented strides in telecom ecosystem; unveils vision for Digital Future

ET Gov. 28 Dec. 2024

The total internet subscribers in the country have increased from 251.59 million as on March 2014 to 954.40 million in March 2024 at compounded annual growth rate (CAGR) of 14.26%.

NEW DELHI: From the fastest global rollout of 5G to policy reforms under the Telecommunication Act, 2023, the Department of Telecommunications (DoT) has spearheaded significant advancements that have fortified India’s position as a global leader in telecommunications in 2024.

The Ministry of Communications has released a comprehensive year-end review, showcasing a series of transformative initiatives and milestones achieved in 2024.

Landmark Achievements in 2024

Fastest 5G Rollout: India now boasts over 4.62 lakh 5G Base Transceiver Stations (BTS), covering 99% of districts, achieving unparalleled deployment speed.

Telecom Act, 2023: Replacing archaic colonial-era laws, the Act introduces a streamlined framework for authorization, spectrum management, and robust cybersecurity measures.

Internet Growth: Internet subscribers surged to 96.96 crore as of June 2024, a 285% growth since 2014, with India ranking among the world’s highest wireless data consumers at 21.30 GB per subscriber monthly.

Affordable Data: Mobile data costs dropped to $0.16 per GB, significantly lower than the global average of $2.59.

Bridging the Digital Divide

The 4G Saturation Project was approved to extend connectivity to all villages, while the Kochi-Lakshadweep submarine cable facilitated the launch of 5G and FTTH services in Lakshadweep. Over 2.14 lakh Gram Panchayats have been connected, and 6.9 lakh km of optical fiber cable has been laid, ensuring seamless connectivity across rural and urban areas.

International Recognition

World Telecommunication Standardization Assembly (WTSA): For the first time in the Asia-Pacific, India hosted this prestigious event, attended by 3,700 delegates from 160 countries.

Global Rankings: India advanced to the top 50 in the Network Readiness Index and achieved Tier 1 status in the Global Cybersecurity Index 2024.

Boosting Investments and Innovation

FDI Surge: Foreign direct investment in the telecom sector reached $670 million in April–September 2024, a 137% increase from the previous year.

Atmanirbhar Bharat: The Production-Linked Incentive (PLI) scheme recorded investments of ₹4,800 crore, sales of ₹69,000 crore, and exports worth ₹13,000 crore, emphasizing self-reliance in telecom manufacturing.

Tackling Cybercrime

The Sanchar Saathi Portal registered over 9 crore visitors and addressed telecom misuse, cybercrime, and financial fraud. Tools like the AI-based ASTR and the Digital Intelligence Platform (DIP) have disconnected 2.67 crore fraudulent connections and blacklisted 70,895 SIM agents. The newly launched International Incoming Spoofed Calls Prevention System blocked over 1.35 crore spoofed calls within 24 hours of its operation.

A Digital-First India

“The strides we’ve made in 2024 are a testament to our resolve to build a connected, secure, and innovative India,” said the Hon'ble Minister of Communications. “These achievements underscore our commitment to making telecommunications a key driver of economic growth and citizen empowerment.”

As 2024 draws to a close, the Ministry of Communications reaffirms its dedication to accelerating India's digital transformation and fostering a sustainable, inclusive, and secure telecom ecosystem.

Expanding Horizons: India's Telecommunications Transformation

India stands at the cusp of a technological revolution, with 5G and emerging 6G technologies spearheading the nation's digital transformation. As 5G services reach 779 of the country’s 783 districts by the end of October 2024, the momentum is unmistakable. The deployment of over 4.6 lakh 5G Base Transceiver Stations (BTSs) signals a massive leap in connectivity, bridging gaps across urban and rural India.

Recognizing the transformative potential of telecommunications, the government has implemented sweeping reforms to facilitate this progress. Simplified regulations for spectrum use, streamlined approvals for infrastructure deployment, and initiatives like the PM GatiShakti Sanchar portal have been pivotal in fast-tracking the rollout.

Nurturing Innovation: 5G Use Case Labs and Hackathons

Education and innovation are key to India's telecom revolution. The establishment of 100 5G Use Case Labs in academic institutions nationwide underscores the government's commitment to empowering the next generation. These labs aim to foster hands-on learning, enable research projects, and encourage academia-industry collaboration.

Similarly, the 5G/6G Hackathon launched in 2024 has identified breakthrough applications in AI-driven network maintenance, advanced drone controls, and digital twins. These innovations are set to redefine how industries leverage next-generation technologies.

Bharat 6G Vision: A Blueprint for Leadership

In March 2023, the Bharat 6G Vision was unveiled, placing India on a trajectory to become a global leader in 6G technology by 2030. The Bharat 6G Alliance (B6GA), a collaborative platform uniting academia, industry, and government, plays a critical role in this mission. With partnerships spanning the globe, including alliances with the USA’s NextG and Europe’s 6G IA, the B6GA is laying the foundation for India’s prominence in the 6G era.

Digital Bharat Nidhi: Connecting Rural and Remote India

The transformation extends beyond urban centers, with the Digital Bharat Nidhi (DBN), formerly the Universal Service Obligation Fund, driving connectivity in remote and underserved areas. Projects like BharatNet have brought broadband to over 2,14,313 Gram Panchayats (GPs), laying nearly 7 lakh kilometers of optical fiber.

Strategic initiatives in the Northeast, border villages, and islands have enhanced 4G and 5G access, bridging geographical and infrastructural divides. For instance, the submarine optical fiber cable connecting Lakshadweep and Andaman & Nicobar Islands now enables high-speed connectivity, transforming local economies.

Bridging Aspirations: The Uncovered Villages and Aspirational District Schemes

India’s commitment to inclusivity is evident in its projects targeting uncovered villages and aspirational districts. The saturation of 4G services across over 24,000 villages, coupled with additional provisions for 2G/3G upgrades, ensures that even the remotest corners of the nation are digitally empowered.

The Aspirational District Schemes, covering thousands of villages across states like Uttar Pradesh, Bihar, and Madhya Pradesh, exemplify the government’s resolve to create equitable opportunities through technology.

A Digital Future Beckons

As India races towards comprehensive 5G adoption and pioneers 6G research, the nation is not merely bridging a digital divide but forging a path toward technological self-reliance. These milestones in connectivity and innovation promise a brighter, more connected future, unlocking untold opportunities for millions.

The Road Ahead

With a sharp focus on 5G and 6G innovation through the Telecom Technology Development Fund (TTDF) and streamlined processes like the GatiShakti Sanchar Portal, the DoT remains committed to fostering inclusivity, security, and technological excellence. The portal has drastically reduced Right of Way (RoW) application processing times from 448 days in 2019 to just 60 days in 2024.

18. Govt's digital initiatives transforming India's socio-economic landscape: World Bank

ET Gov. 2 Jan. 2025

The World Bank also highlighted India's remarkable strides in social mobility, particularly in urban areas.

NEW DELHI: The World Bank in its latest report has recognized India's increasing digital capital as a significant driver of entrepreneurship, business income, and social mobility, especially benefiting small-scale vendors and economically lagging districts.

In a recent report, the institution outlined how digital technologies--such as the internet, mobile phones, and social media--are transforming the socio-economic landscape in the country.

It said "digital capital has increased entrepreneurship and business income in India and has favored small-scale vendors and economically lagging districts".

The report noted that Digital technologies provide students from disadvantaged backgrounds with access to instructional material, promoting talent development and social mobility.

These tools have also enabled individuals to build digital footprints--records of online activity and payments--which can serve as digital capital. This capital helps individuals establish financial credibility, as data on payments, receipts, taxes, and loan repayments can now be used by lenders to assess creditworthiness.

The report credits Nandan Nilekani, one of India's leading tech entrepreneurs, for pioneering the Aadhaar system in 2009. This digital identification initiative has allowed millions of Indians to accumulate digital capital and integrate into the formal economy.

The World Bank also highlighted India's remarkable strides in social mobility, particularly in urban areas. Since the country's economic liberalization, the gains have been more pronounced among disadvantaged communities in cities compared to rural areas.

It said "In India, social mobility has improved greatly in urban areas in recent decades, and has delivered larger gains for the disadvantaged than in rural areas".

It also noted that India's IT revolution has played a crucial role in this transformation. Tata Consultancy Services (TCS) demonstrated to the world the availability of high-quality, cost-effective talent in India, becoming the first Indian company to export computing services to the United States.

The report also mentioned Infosys, founded by a group of former IBM engineers with their savings, further showcased India's IT potential, emerging as a global leader in technology consulting.

The report highlighted how leveraging digital technologies and talent has not only bolstered entrepreneurship but also fostered inclusivity, bridging gaps for underserved communities and reinforcing India's position as a global technology powerhouse.

19. From smog to sustainability: A national strategy to solve India’s stubble burning crisis

ET Gov. 3 Jan. 2025

By reducing stubble burning and encouraging the shift from water-intensive crops like paddy, the government can lower its spending on water management and electricity generation.

As cities across North India struggle to breathe, the Air Quality Index (AQI) paints a grim picture. Delhi, the nation’s capital, frequently records AQI levels breaching the 500-mark during peak winter seasons.

Such readings fall into the “hazardous” category, posing severe risks to human health. Behind these alarming statistics lies a practice deeply embedded in India’s agricultural traditions: stubble burning alongside vehicular emissions, construction, and air pollution.

Picture this: After harvest, farmers are left with piles of leftover crop stalks. With limited time before the next planting season and few affordable options, they often burn the fields. Thick, toxic smoke spreads, choking cities and villages.

A National Crisis with Global Implications

In 2023, India recorded over 75,000 incidents of crop residue burning, significantly increasing harmful fine particulate matter (PM2.5) levels, particularly in northern states.

The World Bank estimates that air pollution costs India $36.8 billion annually in health-related expenses and lost productivity, while also contributing to a decrease in life expectancy, particularly in heavily polluted areas. While stubble burning has historically been concentrated in states like Punjab and Haryana, some other states have now emerged as a new hotspot.

Madhya Pradesh, a leading agricultural state producing 15% of India’s wheat, generates a staggering 33 million tonnes of crop residue annually, of which 3.86 million tonnes are burned on farms. In 2024, the state witnessed a sharp rise in farm fires, logging over 18,000 incidents, competing with Punjab and Haryana.

Economies of Paddy Cultivation in India

Paddy cultivation, a water-intensive crop, has become a central issue in this environmental crisis. On an average, India's paddy productivity is 34.20 quintals per hectare. For the 2024-25 season, the Minimum Support Price (MSP) for common paddy has been set at Rs 2300 per quintal, while estimated cost of production is pegged at Rs 76,449 per hectare.

The Indian Agricultural Research Institute (IARI) estimates that producing 1 kilogram of paddy requires 1,432 litres of water, meaning that a hectare demands over 4.9 million litres of water.

To irrigate one hectare of paddy over 90 days (assuming an average tubewell depth of 200 feet), a typical 5 HP pump will consume approximately 1,350 units of electricity. With an energy cost of Rs 7 per unit borne by distribution companies (as farmers pay negligible amounts due to state subsidies), the fiscal strain on the government for each hectare is Rs 10,000 for irrigation alone.

Despite these inputs, farmers see minimal financial returns. At an MSP of Rs 2,300 per quintal, gross earnings per hectare amount to Rs 78,660. After deducting the production cost of Rs 76,449, the net profit is a mere Rs 2,211 per hectare.

This economic model places farmers under financial duress while compounding environmental degradation through excessive water consumption and harmful practices like stubble burning. Addressing this issue requires a fundamental shift—one that encourages and incentivizes farmers to transition away from paddy cultivation toward more sustainable and profitable alternatives.

Why do traditional solutions fall short?

Several alternative methods have been proposed to mitigate stubble burning, but they come with their own set of challenges. One such method involves bailing the stubble and mixing it with cow dung to produce organic manure.

Another option is to convert the stubble into briquettes, which can be used as fuel in thermal power plants. Additionally, hand-cutting the paddy crop can minimize the amount of stubble generated, with the remaining parts used as fodder for livestock.

But none of these have found favour with farmers as they see little or no additional incentive to adapt to new practices. These practical challenges underscore the need for a more comprehensive, technology-driven approach.

The Farmer-Centric GIS-Driven Solution

To tackle the issue of stubble burning, an innovative GIS-based strategy is being proposed to incentivize farmers to transition away from water-intensive crops like paddy. This farmer-centric approach integrates cutting-edge technology to promote sustainable agricultural practices and support farmers effectively.

Key Components of the GIS-Driven Solution

Mapping Paddy Cultivation Lands: Using GIS technology, the government will map agricultural lands where paddy was cultivated in previous year, forming the foundation for targeted interventions.

Satellite Monitoring: Satellites equipped with high-resolution sensors will monitor agricultural activities in real time. This ensures timely verification of fields avoiding paddy cultivation in coming years and facilitates the accurate distribution of incentives to farmers.

Hotspot Identification and Mapping: GIS tools will then identify and map areas where farmers have shifted to alternative crops. These insights will enable the government to focus its support on regions adopting sustainable practices.

Ground-Level Verification: Ground-truthing, through drones or other technologies, will validate GIS data to ensure accurate mapping of non-paddy cultivation areas.

Direct Farmer Incentives: Farmers identified through GIS and satellite imagery as avoiding paddy cultivation and stubble burning will receive direct financial compensation which will be less than electricity subsidy but more than earnings per hectare, encouraging a long-term shift toward sustainable farming. This approach ensures consistent incentives while actively encouraging more farmers to participate in this GIS mapping program, thereby promoting widespread adoption of sustainable agricultural practices and reducing environmental impact over time.

Impact Analysis and Decision Support: GIS will provide detailed insights into the success of the initiative, including the scale, intensity, and geographical distribution of non-paddy cultivation.

Integrating GIS technology into the stubble-burning mitigation strategy benefits all stakeholders, environment, farmers and state governments. By identifying burning hotspots and promoting sustainable alternatives, this approach will reduce the carbon footprint, conserve water, and empower farmers with viable, eco-friendly alternatives to traditional practices.

By reducing stubble burning and encouraging the shift from water-intensive crops like paddy, the government can lower its spending on water management and electricity generation. For farmers, this approach will offer immediate financial relief and long-term benefits. This approach also aligns with several United Nations Sustainable Development Goals, and will help in achieving ESG (Environmental, Social, and Governance) framework compliance.

Towards a Cleaner, Greener Future

The stubble-burning crisis in India is a national challenge with global implications. The GIS powered strategy represents a transformative step, blending technology with policy to balance environmental protection and agricultural productivity.

The state also sets an example for collaborative action, inviting partnerships from industries, research institutions, and global organizations. Together, we can reimagine agriculture as a sustainable coexistence with nature—ensuring cleaner air, healthier soil, and empowered farmers for generations to come.

(The author is Additional Chief Secretary, Department of Science and Technology, Government of Madhya Pradesh; Views are personal)

20. AI Training Programs: IndiaAI, Microsoft join hands to harness AI’s potential for inclusive development, economic transformation

ET Gov. 10 Jan. 2025

By prioritizing skilling, innovation, datasets and responsible AI practices, the collaboration aims to address citizen-scale challenges, foster entrepreneurship and build a robust AI ecosystem in India.

NEW DELHI: IndiaAI, an Independent Business Division (IBD) under the Digital India Corporation, has signed a memorandum of understanding (MoU) with Microsoft to drive the adoption and development of artificial intelligence (AI) in India. This strategic partnership is aligned with the core objectives of India AI Mission, the Ministry of Electronics & IT (MeitY) said in a statement on Wednesday.

Key highlights of the collaboration

Microsoft, in partnership with IndiaAI, will skill 500,000 individuals, including students, educators, developers, government officials, and women entrepreneurs, by 2026.

Establish 'AI Catalysts', a Center of Excellence, to promote rural AI innovation in tier 2 and tier 3 cities and equip 100,000 AI innovators and developers through hackathons, community building, and an AI marketplace.

Set up AI Productivity Labs in 20 National Skill Training Institutes (NSTIs)/NIELIT centers across 10 states to train 20,000 educators and empower 100,000 students with foundational AI courses in 200 Industrial Training Institutes (ITIs).

Focus on developing AI-enabled solutions for critical sectors, leveraging Microsoft Research (MSR)'s expertise.

Microsoft’s Founders Hub program will extend benefits, including Azure credits, business resources, and mentorship, to up to 1,000 AI startups under the IndiaAI Mission, fostering innovation and growth in India’s startup ecosystem.

Develop foundational models with Indic language support to address India’s linguistic diversity and unique requirements, ensuring cultural and contextual relevance.

Support IndiaAI in building a robust and scalable datasets platform, including tools for dataset curation, annotation, and synthetic data generation.

Collaborate to create frameworks, standards, and evaluation metrics for responsible AI development, supporting the establishment of an AI Safety Institute in India.

Aim to position India as a leader in AI applications.

Highlighting the power of collaborative innovation for India, Abhishek Singh, CEO, IndiaAI Mission stated that "India AI Mission is being implemented by the Government of India with the objective of addressing key issues that can help India take the leadership in building applications using AI. This strategy focuses on building partnerships with industry and academia. Towards this, the collaboration with Microsoft aligns with the core pillars of the IndiaAI Mission, focusing on skilling, innovation, and responsible AI development. By training 500,000 individuals, fostering innovation through AI Centers of Excellence, and delivering AI-driven solutions in critical sectors, we are advancing India's AI ecosystem. This partnership emphasizes inclusivity by empowering underserved communities, promoting ethical AI practices and supporting startups to drive economic growth. Together, we are committed to positioning India as a global AI leader and creating a sustainable and equitable future for all."

India’s Journey Towards Becoming an AI-First Nation

Puneet Chandok, President, Microsoft India and South Asia said, "We are proud to come together with India AI to advance AI and emerging technologies in India. This collaboration underscores Microsoft's commitment to copiloting India on its journey to become an AI-first nation. By skilling 500,000 individuals, establishing AI Centers of Excellence, and setting up AI Productivity Labs, we aim to democratize access to AI, empower communities, and foster innovation, particularly in rural and underserved areas. Together with India AI, we are dedicated to accelerating AI adoption and creating a sustainable future for all."

This collaboration underscores the shared vision of IndiaAI and Microsoft to harness AI’s potential for inclusive development and economic transformation. By prioritizing skilling, innovation, datasets and responsible AI practices, the collaboration aims to address citizen-scale challenges, foster entrepreneurship and build a robust AI ecosystem in India. By advancing AI innovation and adoption, the collaboration seeks to position India as a global leader in AI while driving inclusive and sustainable growth, the ministry added.

India and the World

21. Logistics Sector Reforms India: ADB sanctions $350 million policy-based loan for improving manufacturing sector's supply chains

ET Gov. 23 Dec. 2024

The development of India’s logistics sector is vital to enhancing the competitiveness of its manufacturing sector.

NEW DELHI: The Government of India and the Asian Development Bank (ADB) on Friday signed a $350 million policy-based loan under the second subprogram of Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program.

The signatories to the loan agreement were Department of Economic Affairs (DEA), Ministry of Finance, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry and the ADB.

The SMILE program is a programmatic policy-based loan (PBL) to support the government in undertaking wide-ranging reforms in the logistics sector in India, the Ministry of Commerce & Industry said in a statement. The programmatic approach comprises two subprograms, which aim to expand India’s manufacturing sector and improve the resilience of its supply chains, it said.

The program establishes and operationalizes a comprehensive policy framework to enhance logistics efficiency through strengthening the institutional bases for multimodal logistics infrastructure development at the national, state, and city levels; standardizing warehousing and other logistics assets to strengthen supply chains and incentivize greater private sector investment; improving efficiencies in external trade logistics; and adopting smart systems for efficient and low emission logistics, the ministry said.

The development of India’s logistics sector is vital to enhancing the competitiveness of its manufacturing sector. Through strategic policy reforms, infrastructure development, and digital integration, ongoing reforms are poised to transform the logistics landscape. This transformation is expected to reduce costs, improve efficiency, generate substantial employment opportunities, and promote gender inclusion—driving sustainable economic growth, it said.

The collaboration between the Government of India and ADB reflects a shared commitment to fostering growth and innovation in the logistics sector, supporting India’s broader economic development goals, it added.

22. Steps to inclusion: Making accessibility a reality in the world’s largest democracy

ET Gov. 26 Dec. 2024

Western countries such as the United States, with far fewer number of persons with disabilities, have achieved far greater inclusivity through measures such as the Americans with Disabilities Act (ADA), 1990, which mandates nationwide accessibility.

“The real problem in our country lies not with the disability of Persons with Disability but with the infrastructural disability that exists,” said Sai Prasad Vishwanathan during his appearance on the famous show Satyamev Jayate hosted by Aamir Khan.

This brings us to the question of why should climbing some stairs to enter a building become a barrier to receiving education, healthcare, or going to work? Despite advancements made in infrastructure and technology on various levels, why over 15 crore Persons with Disabilities living in India should continue to face systemic exclusion.

Should accessibility remain to be an unmet promise in a country that aspires to be the Vishwa Guru by the year 2047? While policies such as the Right of Persons with Disabilities (RPwD) Act, 2016, and the Accessible India Campaign aim to guarantee inclusivity, what more can be done in this respect?

The Magnitude of the Challenge

According to the data provided by the World Bank, one billion people or 15 percent of the global population, experience some form of disability. In India, this accounts to more than 20 crore individuals, a number larger than the population of many countries.

Yet, these individuals encounter barriers at every step - ranging from inaccessible transport systems to public buildings like educational institutions, healthcare sector, workplaces, banks, and similar places of public usage that fail to appropriately accommodate their needs.

In comparison, western countries such as the United States, with far fewer number of persons with disabilities, have achieved far greater inclusivity through measures such as the Americans with Disabilities Act (ADA), 1990, which mandates nationwide accessibility.

Accessibility Challenges in Everyday Life

Accessibility in India remains largely superficial. Despite the Harmonized Guidelines for a Barrier-Free Built Environment providing detailed standards, enforcement is sparse, leaving many public and private spaces inaccessible.

Essential features such as ramps, parkings, toilets, elevators, braille information systems and tactile paving are mostly missing or implemented incorrectly which fails to meet the needs of persons with disabilities.

Public Transport Systems are a glaring example of the astounding problem that persists. Though cities like Chennai have mandated accessible buses, widespread adoption is yet to be witnessed. In Railways similarly, coaches designated for persons with disabilities often remain inaccessible due to steep steps, requiring manual intervention, while metro systems in major cities fail to ensure seamless access.

At Ramp My City, therefore, our focus has been on creating practical as well as impactful solutions in buildings to make them accessible. Our experience has shown that such smaller yet nuanced infrastructural changes can drastically transform lives.

However, such efforts often face resistance due to budget constraints and a lack of awareness. Over 600 public buildings have been so far made accessible through our initiatives, yet the scale of the problem demands broader participation and sustained funding.

Roadmap to Inclusion

India needs systemic changes and stricter laws to bridge the accessibility gap that persists. In the Rajive Raturi vs Union of India case, a 3-Judge bench of the Supreme Court emphasized on the need for mandatory compliance with accessibility standards in newer constructions.

Accessibility thus should be as non-negotiable as fire safety regulations, with penalties for violations. Additionally, retrofitting existing structures should be prioritized with phased timelines and regular audits to ensure compliance.

Public transport also must be redesigned for inclusivity, integrating accessible features in new vehicles under the 2030 EV transition. Finally, on the lines of ‘Gender-Budgeting’ we should ensure ‘Accessible-Budgeting’ as well as Corporate Social Responsibility (CSR) initiatives must actively support these efforts, leveraging the 29,000 crore+ annual philanthropy pool.

Accessibility is thus a litmus test for India’s commitment to inclusion and equity and that by prioritising accessibility, India can ensure that every citizen, regardless of ability, thrives and contributes to its journey toward becoming the Vishwa Guru.

23. India’s single malts seek to be more than just a drink – they want a label.

ET, 10 Jan. 2025

Indian single malt manufacturers are planning to seek a clear definition of the category from the FSSAI, as per media reports. Why this push, and how will it impact sales? ET Prime explores.

Indian single malt whiskies have solidified their position in the global alcoholic beverages (alcobev) market in recent years. Not only have they won numerous prestigious awards worldwide, validating their quality, but they also accounted for 53% of total whisky sales in India in 2023.

Now, Indian manufacturers aim to elevate this established category of alcobev to the next level. The first step in this process is to establish a standardised definition of the category, which will enable the product to compete on equal footing with its international peers.

Indian single malts’ manufacturers are planning to seek a clear definition of the category from the FSSAI (Food Safety and Standards Authority of India), as reported by PTI on December 29, 2024.

If this comes through, it will have a direct impact on companies such as Radico Khaitan, John Distilleries, Amrut Distilleries, Piccadily Agro, amongst a few others.

But why are these companies pushing for a distinct definition of the beverage? And how will it affect the sales of Indian single malts? ET Prime explores.

Indian vs. traditional single malts

Single malts are defined as whiskies produced at a single distillery, made exclusively from malted barley, and most importantly, not blended with other whiskies. While traditionally single malts mostly originated from Scotland and Wales, over the years, they have gained popularity in other regions of the world as well, especially in India.

The first major breakthrough for Indian single malts came with Amrut Distilleries’ Amrut Fusion, which caught international attention when renowned whisky critic Jim Murray rated it as the third-best whisky in the world. This success sparked a wave of interest in Indian single malts, leading to a growing number of producers entering the market.

However, one of the primary differences between Indian single malts and single malts originating from Scotland or Wales lies in the ageing process.

In India, most single malts do not specify the number of years they are aged due to the distinct climatic conditions in which they are produced. Due to the warmer temperatures, Indian single malts are rarely aged for the same number of years as those originating in Scotland or Wales, which used to be a bone of contention when comparing single malts of the two different geographies.

The push for a GI tag

While that comparison is no longer used to question the quality of Indian single malts, as the brands have proven their quality standards over the years, Indian manufacturers are definitely working towards getting a geographical indicator (GI) tag for Indian single malts.

This is not the first time that Indian manufacturers have tried to seek this out.

Vinod Giri, ex-director general of confederation of Indian Alcoholic Beverage Companies (CIABC) and current director general of Brewers’ Association of India says, “This has been in the works for nearly two years now. This is not something that suddenly came up. Indian single malts are doing extremely well internationally as well. And single malts are being made across the globe. So, this makes complete sense.”

“As of today, the single malt labels on the Indian brands are given by state authorities. However, when the products are being sold in an international market such as say Australia, then the GI tags and labelling becomes important, as consumers would want to know what they are buying.”

Impact on leading brands

“Under the Rampur Indian Single Malt umbrella, our super luxury malt offerings registered a 138% growth in FY2024. Rampur Asava, an expression of Rampur Indian Single Malt, is already available overseas, and we plan to launch it in India soon,” says Radico Khaitan’s, the domestic spirits’ market leader annual report FY24.

The company already has eight expressions of the Rampur Single malt with prices ranging from USD100 per bottle to USD6,000.

One of the primary reasons to opt for a GI tag for a home-grown single malt is the legitimacy that it offers to manufacturers in demanding a certain price for the product.

According to Piccadily Agro, the manufacturers of Indri single malts, company report, “Indri has proudly garnered over 30% of the Indian single malt market share (CY23, source IWSR Report’24) in India within two years of our launch. In FY23-24, Indri surpassed sales of over one lakh cases and has become the ‘fastest growing single malt brand’ in the world.”

Bottoms up

According to IWSR Drinks Market Analysis, “ISMs (Indian Single Malts) and craft gins are expected to post strong double digit CAGRs to 2027. As producers extend their ranges upwards, they are spanning a greater breadth of price points: Indian whiskies are now available from INR500 a bottle to INR13,000 – similar to a super-premium imported single malt.”

Industry sources predict Indian single malt consumption will grow by 13% on a year-on-year basis till 2027, much faster than compared to scotch’s growth, which is expected to be 8%.

If further validation of the success of Indian single malts were needed, global companies like Diageo and Pernod Ricard have launched their own Indian single malt variants namely Godawan and Longitude 77 in the past two years.

As of December 2024, the Indian single malt market has reached 1.5 lakh cases, growing at an impressive 30% year on year.

The push for a GI tag by Indian single malt manufacturers will not only help legitimise their products internationally but also ensure that brands adhere stringently to the “single malt” definition.

24. Organic Goods Exports can Hit ₹20K cr in 3 Yrs: Goyal

ET, 10 Jan. 2025

India has the potential to increase exports of organic products up to ₹20,000 crore in the next three years from ₹5,000-6,000 crore now, commerce and industry minister Piyush Goyal said Thursday.

“Currently, our organic product exports are at ₹5,000-6,000 crore. In the next three years, we can easily achieve ₹20,000 crore exports, about 3-3.5 times increase from the current level,” Goyal said at the eighth edition of National Programme for Organic Production (NPOP). The new regulations are aimed at enhancing clarity and transparency in organic product standards and aligning with global standards.

Goyal said the global demand for these products is about ₹1 lakh crore, which can grow up to ₹10 lakh crore in the coming years and asked startups to come out with solutions that help in growth of the sector. He also said the cooperative sector, farming sector and the trade sector will assist the organic sector to grow in the future.

The revised NPOP stresses on farmer-friendly regulations, streamlined certification, enhanced transparency and revamped traceability system with an ambitious target of reaching $2 billion organic food exports by 2030.

At the event, TraceNet 2.0, an upgraded traceability platform of NPOP for seamless operations and enhanced tools for regulatory oversight, was also launched.

25. India can achieve $100 bn exports target in F&B, agriculture and marine products in 5 years: Piyush Goyal

ET Gov. 13 Jan. 2025

India has the potential to reach $100 billion of combined exports in the food & beverage (F&B), agriculture, and marine products industries in the next five years, Piyush Goyal said.

NEW DELHI: India has the potential to reach $100 billion of combined exports in the food & beverage (F&B), agriculture, and marine products industries in the next five years, Union Minister for Commerce & Industry Piyush Goyal said on Friday.

In his keynote address at an interaction with the F&B industry stakeholders on the sidelines of Indusfood 2025 here, the minister emphasised that the target is not very ambitious as the industries need to grow at an achievable combined rate of 14-15 per cent.

He complimented the Agricultural and Processed Food Products Export Development Authority (APEDA) and the Marine Products Export Development Authority (MPEDA) for having played a key role in India exporting $50 billion of goods last year.

The Minister also informed that the Government has allowed 100 per cent Foreign Direct Investment (FDI) in the F&B sector, apart from which the government also allows work permits easily for those who want to work or set up businesses in India.

Goyal urged the Indian companies to invest in innovation, better packaging, sustainability, and to mechanise their processes to make them more hygienic and encouraged the stakeholders present to bring out high-value products on nutrition that can be used by the government for its food security programmes in the country.

On promoting sustainability in the food industry, the minister highlighted that the government is prioritising making farming processes sustainable and is working to promote organic farming and food products. There is a tremendous growth potential in organic farming and the government has eased certification processes for organic foods while maintaining the sanctity and traceability to ensure no irregularities creep in the system, he noted.

Goyal also said that the government is looking to expand food testing laboratories across the nation and also noted that it will welcome suggestions on equipment and processes needed to set up high-quality testing laboratory facilities. He urged the stakeholders to travel to other parts of India to acquire ideas on the varied tastes and flavours the country has to offer and hoped that the Indian F&B industry and its partners will continue to innovate and bring global standards in the country and take Indian products to the world.

The minister further highlighted that pre-packaged, ready-to-eat foods from India have also found success abroad, and millets, pickles, and spices have found traction as more pre-packaged foods are finding markets both in India and internationally.

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AAPI

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Sunday, 19 January 2025

Newsletter, 20-I-2025

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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

NEWSLETTER, January 2025

– 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