AAPI: February 2025

DELHI, February 2025

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Vasudhaiva Kutumbakam implies 'One World, One Health': Avenues for growth in health-tech sector
22. India Known as 1st Responder to Global South During Natural Disasters: Goyal
23. US Consulate Bengaluru: US opens its 5th Consulate in Bengaluru
24. AI can add $4.4 trillion annually to global economy but digital divide must be addressed: WEF
25. Welspun Plans Home Run After Going Around the World

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DELHI, January 2025

NEWSLETTER, January 2025

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

Cash Plus initiative in Rajasthan: Empowering women to achieve the Sustainable Development Goals

ET Gov. 27 Jan. 2025

The five-district journey of the Cash Plus program in Rajasthan has already become a blueprint for scale-up for the state. Globally, the 2030 SDG agenda risks being unachieved due to economic distortions, civilian and military conflicts, and climatic shocks. Such a relapse disproportionately impacts women and children, with an immediate impact of rendering the inter-generational cycle of malnourishment unassailable over the next few generations.

WHO recently estimated that 45% of deaths among children under the age of 5 are due to undernutrition. The burden of undernutrition continues to be high in India, with close to one-third of the world's malnourished children housed in the country. The National Family Health Survey (NFHS) of India monitors the nutrition status of women and children, documenting the trends for all major indicators.

While the trends for India have been on a decline, the most recent survey of NFHS (2019-21) shows that 18% of children are born with low birth weight (born with a weight less than 2500 gms) and almost a fifth of children under the age of 5 are wasted, i.e. do not have appropriate weight for height. Researchers have also established both globally and in India that the prevalence of low birth weight contributes significantly to childhood undernutrition.

India has been home to several first initiatives by the Government to address the problem of malnutrition. Integrated Child Development Service (ICDS), set up in 1975, was one of the earliest and globally largest programs to deliver health and nutrition at the last mile. The National Food Security Act of 2013 outlines direct benefit support for pregnant and lactating women to fulfil their unmet nutritional needs during the most vulnerable period.

The most recent initiative of delivering cash benefits to pregnant women via the Pradhan Mantri Matru Vandana Yojana (PMMVY) has been a game changer in addressing the challenge of undernutrition. However, the limitation of the scheme, which provides benefits to only first-time pregnant women during the pregnancy period, restricts the scheme's coverage.

Also, while the Government announced the National Nutrition Mission in 2018 to mobilise community-level campaigns for widespread change in nutrition behaviours, the loose coupling of the cash scheme and behaviour campaign has yet to achieve the desired impact.

Evidence worldwide demonstrates that cash and behaviour change programs effectively address malnutrition when layered with one another. While Social and Behaviour Change Interventions (SBCI) empower households to make informed decisions, conditional cash transfers act as an effective behaviour catalyst by enforcing health-seeking behaviours and enabling a mental shift in households from survival to planning to make them more receptive to nutrition education.

Problems like malnutrition are characterised by complexity, interdependence, and resistance to simple solutions. They stem from entrenched collective behaviours and practices influenced by deep-seated cultural norms and beliefs. Cash Plus programs identify these social norms and work to shift them positively through the right conditionalities and tranching of cash benefits, as well as targeted behaviour interventions built on culturally sensitive messaging, storytelling, and community mobilisation.

SBCI targets these behaviours by developing evidence-based campaigns and interventions encouraging positive changes, such as healthier dietary habits and feeding practices.

Rajasthan took a significant leap towards the cash plus program when it extended the national cash transfer scheme of PMMVY by including pregnant women for the second time in the cash benefit ambit. It also embedded a robust, evidence-based Social and Behavioural Change strategy within the cash benefit scheme to ensure that households not only receive additional resources to invest in women's nutrition during pregnancy but also benefit from SBC interventions that empower an enabling environment within the household and community for women to eat more and eat right.

The first phase of the work began in the five most vulnerable tribal districts of Baran, Banswara, Dungarpur, Pratapgarh and Udaipur. Spread over pregnancy and infancy, the cash installments contribute to good health-seeking behaviours such as timely and frequent antenatal care, institutional delivery, and child immunisation. Cash played intrinsic (as the receipt is on compliance conditions) and instrumental roles (by increasing disposable income for mothers).

Rajasthan developed a cash transfer system based on a single unified registry and ensured the auto-enrolment of women for direct cash benefit transfers while complying with the appropriate conditions. An evidence-based multi-media SBC strategy was rolled out in parallel to establish proper knowledge and numerous triggers for cementing nutrition message recall among stakeholders. Interpersonal Communication became the core of this strategy, where trained frontline workers, equipped with mobile apps and Job Aids, educated and facilitated pregnant households across the first 1000 days (from childbirth till the child is two years of age).

In addition, activating multiple new and existing communication platforms using participatory learning approaches for community mobilisation and using mid-media, mass media, and digital media for campaigns resulted in reiterative and consistent messaging to bolster the community's adoption of desirable health-seeking and nutrition behaviours. The initiatives bridge siloed government departments, engage with civil society partners, and deploy technology to ensure equitable access to maternal and childcare programs.

Evidence from these five tribal and most vulnerable districts demonstrates how cash transfers coupled with social and behaviour change (SBC), designed and implemented locally contextually, simplified, targeted and reinforced via multiple platforms, can improve nutrition-sensitive behaviours like dietary diversity.

These behaviours benefit intermediate outcomes such as weight gain among pregnant women, thus impacting low birth weight. The efforts resulted in a much-improved exposure of women to nutrition interventions. In 2021, 50% of women received two or fewer platforms. This exposure improved to more than 90% of women receiving exposure to at least four SBCC platforms in 2024.

The program enabled cash transfers to close to 2 lakh second-time pregnant women in the five districts. It also reached large numbers of households and communities to deliver nutrition counselling and mobilise communities.

The five-district journey of the Cash Plus program in Rajasthan has already become a blueprint for scale-up for the state. It has started the expansion by implementing the cash and some SBC initiatives in all districts. With the state's commitment to empowering women and supporting them in this fight against malnutrition, Rajasthan's Cash Plus program holds a definitive way forward for most States in India and other low—and middle-income countries in the Global South to strengthen their cash initiatives targeting women and children.

Key Highlights of the Program

Integrated Approach: The Cash Plus program combines conditional cash transfers with Social and Behaviour Change Communication (SBCC) initiatives to foster sustainable improvements in maternal and child nutrition.

Focused Implementation: Targeted in five tribal districts—Baran, Banswara, Dungarpur, Pratapgarh, and Udaipur—the program’s design and delivery are tailored to local cultural and contextual needs.

Improved Access: Between 2021 and 2024, the program saw a significant increase in women’s exposure to nutrition interventions, with those receiving access to four or more SBCC platforms rising from 50% to over 90%.

Broad Reach: Nearly 2 lakh second-time pregnant women in Baran, Banswara, Dungarpur, Pratapgarh, and Udaipur benefitted from cash transfers, while households and communities received comprehensive nutrition counseling and mobilization support.

Impact and Results

A representative survey conducted in the five districts demonstrated substantial progress in nutrition outcomes:

Improved dietary diversity among women and children.

Enhanced weight gain among pregnant women, contributing to reduced rates of low birth weight.

Strengthened community engagement and awareness around nutrition-sensitive practices, driven by SBCC efforts.

2. Bridging the gap: Empowering the working class with insurance, social security & other benefits.

ET Gov. 14 Jan. 2025

"India has been actively advocating for the inclusion of diverse social security measures in global reports and databases at international fora like G20, BRICS, and the ILO Governing Body Meetings. The issue has been taken up with the ILO through a series of technical meetings and rigorous negotiations. As a result of these efforts, India’s social security schemes have now been incorporated for estimating the country’s social protection coverage": Sumita Dawra, Secretary, Ministry of Labour & Employment, Government of India.

“The Employment Linked Incentive (ELI) Scheme, announced in the Union Budget, aims to boost job creation and formalize the workforce through targeted programs. The scheme’s impact spans sectors, promoting the transition to formal employment and enhancing social security. Manufacturing sees a significant boost, aligning with the Make in India initiative, while the inclusion of financial literacy training is aimed to equip the workforce with essential skills. The scheme aims to benefit more than 2.5 Crore youth in the country.”

This was stated by Sumita Dawra, Secretary, Ministry of Labour & Employment, Government of India, in conversation with Anoop Verma, Editor-News, ETGovernment. In the interview that follows, Sumita Dawra provides an overview of the social protection and other benefits that the government is providing to the working class.

Edited excerpts:

Recently, a meeting to review the social security for platform and gig workers was organized by the Ministry. What is the approach that the Ministry is taking to improve the social security of platform and gig workers?

The Government of India is committed to ensure that this growing workforce is not deprived of its rights. The Code on Social Security, 2020 outlines various measures for gig and platform workforce, including life and disability insurance, accident insurance, health and maternity benefits, and other benefits.

The Ministry of Labour and Employment is working on a framework for social security coverage for gig and platform workers in consultation with Platform Aggregators, Platform Worker’s Associations, Central Ministries, Industry Bodies and other concerned stakeholders. The Ministry had launched the e-Shram-One-Stop-Solution, on 21st October, 2024 to facilitate integration of different social security and welfare schemes at a single portal: e-Shram for unorganised workers including gig and platform workers.

An aggregator module was also launched on the portal with an advisory issued by the Ministry to platform aggregators to register themselves and platform workers engaged with them on the e-Shram portal. Further, a Committee comprising representatives from stakeholders has been working on a framework for providing social security and welfare benefits to gig and platform workers.

The ILO’s World Social Protection Report highlights India’s success in doubling social protection coverage to 48.8%. What initiatives are being taken to further improve the social protection coverage of the working class in India?

India has been actively advocating for the inclusion of diverse social security measures in global reports and databases at international fora like G20, BRICS, and the ILO Governing Body Meetings. The issue has been taken up with the ILO through a series of technical meetings and rigorous negotiations. As a result of these efforts, India’s social security schemes have now been incorporated for estimating the country’s social protection coverage. However, this figure underestimates the reality, as it excludes various state-level social security schemes (e.g., old age pension) and in-kind benefits. We are actively working with States to map these schemes and ensure their inclusion in future reports of ILO. Once accounted for, India’s actual social protection coverage will be more accurately reflected.

ESIC has given in principle approval to 10 new ESIC Medical Colleges. By when is this project expected to be completed? How many new medical seats will these colleges create?

ESI Corporation has approved the establishment of 10 new ESIC Medical Colleges using existing ESIC hospital infrastructure, in addition to existing 8 ESIC Medical Colleges. The admissions to the MBBS course are to be started from Academic Year 2025-26 subject to fulfilment of prevalent applicable norms. The total number of seats contributed by these new ESIC Medical Colleges is estimated at 600.

The Ministry has conducted a number of meetings with various states and Union Territories for the framing of rules within the ambit of the labour codes. How much progress has been made in this area?

In the spirit of cooperative federalism, the Ministry held 6 regional meetings with all States and UTs between August and October, 2024. Focused discussions on taking an integrated and unified approach to labour reforms, registration of unorganised workers on eShram Portal, welfare of Building & Other Construction Workers (BoCW), and sharing best practices on boosting employment generation, were the key highlights of these meetings. During the meetings, States were urged to plug the gaps and divergences in their respective draft rules by harmonizing and aligning them with the Central rules under the Labour Codes.

The Ministry has been consistently working for harmonization of Rules, under the four codes, across the States. Post regional meetings, Nagaland, Sikkim, Andaman & Nicobar Islands pre-published draft Rules under all Codes. All 36 States and UTs are expected to complete harmonization and pre-publication of draft rules by 31 March 2025. In keeping with the vision of Viksit Bharat, the Ministry has identified certain reforms in Labour Laws to be carried out for simplification & rationalisation of processes and for ease of doing business. We are working on this. Further, the reform of converting the role of inspector to that of advisor and facilitator for promoting compliances and harmonious industrial relations. The above steps would act as a catalyst for ease of doing business by reducing compliance burden.

From January 2025, EPFO will allow EPS pensioners to get pension from any bank, any branch anywhere in India. This initiative should make it easier for the pensioners to access their pension. What steps have been taken to ensure seamless and secure implementation of this initiative?

The Centralized Pension Payments System (CPPS) system would ensure disbursement of pension throughout India without any need for transfer of Pension Payment Orders (PPO) from one office to another even when the Pensioner moves from one location to another or changes his bank or branch. This would be a great relief to pensioners who move to their hometown after retirement. EPFO has rolled out the new CPPS in all offices from December 2024. About Rs 1570 Crore pension was disbursed to more than 68 Lakh pensioners pertaining to 122 pension disbursing Regional offices of EPFO. Failed transactions are being monitored and remedial action for correcting bank account details are being undertaken by EPFO.

CBT has recommended the EPFO Amnesty Scheme 2024 to encourage employers to voluntarily disclose and rectify past non-compliance or under-compliance without facing penalties or legal repercussions. What kind of response are you seeing from employers for this scheme?

Both the Employer and Employee representatives of the Central Board have welcomed the scheme. This initiative is expected to particularly benefit small establishments, such as those in the MSME sector, by alleviating concerns about enrolling under the EPFO and encouraging compliance without fear of additional damages/penalties. The scheme would extend social security benefits to more employees and promote workforce formalization and rebuild trust with employers which fosters employment generation.

The Building and Construction Workers MIS Portal was launched in August 2024. How much progress has been made in getting all the states in the country to complete the integration process with the portal?

The BoCW Management Information System (MIS) Portal was launched as the centralized data management system on 21.08.2024 for compilation and analysis of data related to construction workers. It is developed to enable the States and UTs for making informed decisions and frame better welfare policies for BoC workers. So far 35 States/UTs have commenced submission of data on various fields related to implementation of the mandate of the BoCW Act, 1996 & BoCW Welfare Cess Act, 1996. Further, API integration of States and UTs with e-Shram for facilitating portability of social security to BoC workers is also under progress.

The Employment Linked Incentive Scheme was announced during the Union Budget for incentivising job creation and promoting formalization of jobs. What kind of impact is the ELI scheme having in different sectors of the economy? How many jobs is the ELI scheme expected to create in the next 5 years?

The Employment Linked Incentive (ELI) Scheme, announced in the Union Budget, aims to boost job creation and formalize the workforce through targeted programs. The scheme’s impact spans sectors, promoting the transition to formal employment and enhancing social security. Manufacturing sees a significant boost, aligning with the Make in India initiative, while the inclusion of financial literacy training is aimed to equip the workforce with essential skills. The scheme aims to benefit more than 2.5 Crore youth in the country.

3. Bold, unconventional steps for Budget 2025 to propel India into an advanced nation

ET Gov. 01 Feb. 2025

Capping corporate tax at 10% for companies establishing R&D centres will attract global leaders in technology, pharmaceuticals, and clean energy.

As India aspires to become an advanced economy, the Union Budget 2025 must adopt bold, integrated strategies. Economic and emotional resilience, along with global well-being, should be at the core of decision-making. The government must implement interconnected reforms to drive national progress across sectors.

A crucial step is transforming India into a global research and development (R&D) hub by introducing a competitive tax regime. Capping corporate tax at 10% for companies establishing R&D centers will attract global leaders in technology, pharmaceuticals, and clean energy. While cost advantages may bring companies to India, a highly skilled talent pool will make them stay. This requires a robust education system to produce professionals equipped to contribute to these industries.

To truly support this transformation, India must overhaul its higher education system. An investment of ₹150,000 crore in a "Knowledge Sovereignty Fund" will drive AI-powered digital learning in government schools, upskill teachers, and establish 100 globally competitive universities. Scholarships for STEM and liberal arts collaboration will enhance India's academic strength. Bringing in international educators initially will help train Indian professors, ensuring a self-sustaining knowledge ecosystem and a strong workforce for emerging industries.

However, education alone is insufficient without a focus on employability. India's skilled workforce is a significant asset, and a "Global Skill Hub Initiative" should train professionals in healthcare, technology, and renewable energy. Bilateral agreements with developed nations will facilitate structured workforce deployment within five years. Integrating education, skills, and employment will strengthen domestic industries while positioning India as a global supplier of skilled professionals.

Balanced regional development is also critical. "Citizen Productivity Zones" (CPZs) in underdeveloped areas should integrate housing, education, healthcare, and employment, fostering entrepreneurship and skilled labor growth. Aligning CPZs with Smart Cities will prevent infrastructure mishaps, create jobs, and reduce migration to metropolitan areas, ensuring sustainable urbanization.

India's coastline, river networks, and abundant solar and wind resources must be leveraged for economic growth. Expanding mini ports, developing an inland waterway transport system, and investing in solar and wind energy are essential. Declaring these industries as infrastructure sectors with targeted incentives will drive scale and efficiency. India should also launch "Climate Sovereignty Bonds" to finance green infrastructure, renewable energy, and afforestation. Tying corporate CSR contributions to these bonds will ensure sustainable industrial growth while enhancing environmental resilience.

Interconnecting rivers and transitioning to green energy will also boost agriculture, which employs over 50% of India's workforce. A tech-driven agricultural revolution is needed. Allocating ₹2 lakh crore to digitize agriculture through AI, IoT, and blockchain will enhance efficiency and profitability. Integrated storage and cold chain infrastructure will curb the 40% agricultural wastage, while river interlinking will improve irrigation and food security.

To support strategic industries, a ₹5 lakh crore Sovereign Venture Fund should accelerate semiconductor manufacturing, space exploration, biotechnology, clean energy, and quantum computing. This fund will collaborate with private investors to drive self-reliance in critical future technologies, attracting international expertise and making India a global manufacturing hub. A well-trained workforce, robust infrastructure, and advanced technology hubs will create a sustainable ecosystem for growth.

Lastly, national well-being is key to productivity. Mental health must become a priority in India’s public healthcare system. A ₹20,000 crore "National Mental Health Infrastructure Fund" should establish district-level mental health clinics. A mentally resilient population will contribute more effectively to the workforce, reinforcing productivity gains from education, skill development, and industrial expansion.

By implementing these interconnected strategies, Budget 2025 can drive economic transformation, ensuring that India's advancements in education, infrastructure, industry, and sustainability are mutually reinforcing. This integrated approach will propel India into the ranks of advanced nations, fostering inclusive, sustainable, and globally competitive growth.

4. Improving the health of nation’s children through access to clean drinking water

ET Gov. 24 Jan. 2025

Access to safe drinking water is not just a necessity; it is a cornerstone of a community's wellbeing.

In 2018, NITI Aayog released a report stating that approximately 163 million people in India lived without access to clean water sources near their homes.

This alarming figure highlighted a significant public health challenge: a heightened risk of waterborne diseases exacerbated by the lack of access to clean water. This challenge is further compounded by climate change, unchecked urbanization and commercialisation, all of which have led to increased pollution of our water bodies, rendering many unfit for consumption.

Access to safe drinking water is not just a necessity; it is a cornerstone of a community's wellbeing. The scarcity of it has profound implications on public health, the environment, and the economic sustainability of the country.

Throughout my medical career, I have witnessed the impact that poor water quality can have on our youngest and most vulnerable populations. Contaminated water causes not only immediate health issues but also long-term chronic conditions such as stomach problems, nutrient absorption issues, weakened immune systems – all of which impede a child’s overall development.

I have seen parents investing tremendous financial and emotional resources to protect their children from these illnesses. Waterborne illnesses, particularly diarrhoea—the most common yet preventable disease caused by contaminated water—have long been among the leading causes of child mortality throughout history.

Despite the best efforts from the medical community, many young lives were lost to such diseases. Even today, diarrhoea remains a major health threat, with the World Health Organization (WHO) recognizing it as the third leading cause of infant mortality worldwide.

However, the past few years have witnessed a transformative shift in society through government initiatives like the Jal Jeevan Mission (JJM). This program has successfully expanded access to tap water in rural households from just 17% in 2019 to an impressive 77% in 2024. It not only provides access to safe drinking water but also promotes communities-level management of water resources by safeguarding infrastructure and implementing practices for water reuse and grey water management.

In my daily interactions with patients who come to AIIMS from every corner of the country, I am reminded of the profound impact access to clean water has on health. Many patients share how the availability of safe drinking water in their communities has transformed their lives. They speak of fewer children falling ill, fewer trips to the health center for diarrhoea and other waterborne diseases, and an overall sense of relief that their families are healthier.

These personal accounts align with what research tells us: access to clean water can reduce under-five mortality by 25%, making it one of the most effective interventions for improving child health. The progress we are witnessing is a testament to the critical role of clean water in shaping public health outcomes. It is heartening to see how such a fundamental resource is creating ripple effects of well-being across the nation.

With an array of initiatives as part of the clean water mission, the government is also encouraging citizens to take an active role in their own well-being, especially children, transforming them from mere beneficiaries into active stakeholders in their health. These programmes foster community involvement in preservation and protection of water resources, leading to school children across the nation rolling up their sleeves, participating in activities to protect their water bodies, learning not just about conservation but about their vital role in shaping a healthier future for all.

While we celebrate these achievements, we must also recognize that this is just the beginning. Ensuring that every child has the opportunity for a healthier life requires collective action. It is essential that we continue to work towards sustainable water management practices, engage in conservation efforts, and support initiatives that prioritize clean water for all.

At a local level, each one of us can make a difference by adopting effective water-saving habits—such as fixing leaks, using water-efficient appliances, and collecting rainwater for household purposes like gardening and cleaning. In addition to conserving water, it is essential to protect local water sources from pollution and maintain the infrastructure that supports them.

Schools and community groups can take the lead by initiating clean-up drives at regular intervals. By embracing these simple practices, individuals like you and I can safeguard our water resources and secure a healthier, more sustainable future for all.

(The author is Professor, Centre for Community Medicine, AIIMS New Delhi; Views expressed are personal)

5. India Renewable Energy Growth: India’s RE capacity registers 15.84% YoY growth; record 97.86 GW addition in solar, wind adds 48.16 GW

ET Gov. 15 Jan. 2025

Solar power spearheaded this growth with the addition of 24.54 GW, reflecting a 33.47% rise in its cumulative installed capacity from 73.32 GW in 2023 to 97.86 GW in 2024 and wind contributed with an additional 3.42 GW installed in 2024.

NEW DELHI: Union Ministry of New and Renewable Energy (MNRE) has reported remarkable progress in India’s renewable energy sector, highlighting significant achievements between December 2023 and December 2024. This growth reflects India’s steadfast commitment to achieving its clean energy targets and its broader vision under the ‘Panchamrit’ goals announced by Prime Minister Narendra Modi, the ministry said in a statement on Monday.

Record Capacity Additions

As of December 2024, India’s total renewable energy installed capacity has reached 209.44 GW, marking an impressive 15.84% increase compared to 180.80 GW in December 2023. The total capacity added during 2024 amounted to 28.64 GW, representing a significant year-on-year increase of 119.46% compared to the 13.05 GW added in 2023, it said.

Solar and wind surge

In 2024, solar power spearheaded this growth with the addition of 24.54 GW, reflecting a 33.47% rise in its cumulative installed capacity from 73.32 GW in 2023 to 97.86 GW in 2024. Wind energy also contributed to this expansion, with an additional 3.42 GW installed in 2024, increasing the total wind capacity to 48.16 GW, a growth of 7.64% from 2023, it said.

Growth in Bioenergy and Small Hydro Power

Bioenergy has shown remarkable growth, with its installed capacity rising from 10.84 GW in December 2023 to 11.35 GW in December 2024, reflecting a 4.70% increase. Small hydro power projects saw incremental growth, with installed capacity increasing from 4.99 GW in 2023 to 5.10 GW in 2024, representing a 2.20% rise, it said.

MNRE under Union Minister of New and Renewable Energy Pralhad Joshi has been taking various key initiatives to achieve Prime Minister Narendra Modi’s vision of 500 GW of renewable energy by 2030, the statement said, reflecting India’s dedication to fulfilling its climate commitments while strengthening energy security. These impressive figures underscore the Government of India’s continued efforts to scale up renewable energy capacity in the country, it added.

- Agriculture, Fishing and Rural Development

6. Edible Mushrooms: Fueling India's health, economy – a growing industry in 2025

ET Gov. 14 Jan. 2025

Edible mushrooms such as oyster and shiitake mushrooms are highly valued for their nutritional benefits. As India moves through 2024, the edible mushroom industry is witnessing significant growth, driven by a rising interest in their health benefits and economic opportunities. Mushrooms like oysters and shiitake are not only becoming kitchen staples but are also crucial players in the nation's agricultural and economic landscape.

Edible mushrooms such as oyster and shiitake mushrooms are highly valued for their nutritional benefits. Oyster mushrooms are packed with protein, fiber, vitamins, and minerals, and boast antioxidant, anti-inflammatory, and immune-boosting properties. Likewise, shiitake mushrooms contain compounds that promote heart health, strengthen the immune system, and possess anti-cancer effects. The increasing awareness of these health benefits is driving demand among health-conscious consumers.

The mushroom industry’s economic impact is profound. The market for edible mushrooms in India is expanding quickly, propelled by domestic consumption and export potential. Mushroom farming provides employment, especially in rural areas, thus supporting economic upliftment. It is a low-cost venture requiring minimal land and water compared to traditional agriculture, making it an attractive option for small-scale farmers.

A notable example is And Fungi, a company founded by Tarun Ahuja. And Fungi is dedicated to growing a variety of edible mushrooms on its farms while also educating the public about their numerous benefits. Through workshops, community engagement, and partnerships with local farmers, the company significantly promotes the health and economic advantages of mushrooms.

Mushroom farming is naturally sustainable. It uses agricultural waste products as a growth medium, reducing waste and promoting environmental sustainability. The cultivation process has a smaller environmental footprint compared to traditional livestock farming, producing fewer greenhouse gases and using less water. This aligns well with global efforts to combat climate change and promote sustainable agricultural practices.

Apart from their health and economic benefits, edible mushrooms are gaining popularity for their versatility in cooking. They can be used in soups, salads, stir-fries, and pasta. Oyster mushrooms have a delicate flavor and meaty texture, making them ideal for vegetarian and vegan recipes. Shiitake mushrooms, known for their rich umami taste, add depth to various dishes.

Chefs and home cooks are exploring these fungi, creating innovative recipes that showcase their unique flavors. Mushroom-based products like powder, extracts, and snacks are also entering the market, catering to diverse consumer preferences.

Recognizing the potential of the mushroom industry, the Indian government has introduced policies to support its growth. Training programs for farmers, financial assistance, and research initiatives enhance productivity and quality in mushroom cultivation. The Ministry of Agriculture and Farmers' Welfare has played a crucial role in promoting mushroom farming as a viable agricultural enterprise.

These efforts boost farmers' incomes and contribute to food security by providing a nutritious, sustainable food source. The integration of mushroom farming into the broader agricultural framework highlights its growing importance in India’s economy.

In 2024, the edible mushroom industry in India is thriving, driven by its health benefits, economic potential, and sustainability. Oysters, shiitake, and other edible mushrooms are becoming household names, appreciated for their nutritional value and culinary versatility. Government support and consumer demand are propelling this industry forward, making it a significant contributor to the nation's agricultural and economic landscape.

As India continues to embrace sustainable and health-conscious practices, the edible mushroom industry is set to play a pivotal role in shaping the future of food and agriculture. The journey ahead promises exciting developments, with mushrooms leading the way towards a healthier and more sustainable India.

7. FPOs: A Vital Institution for Indian Farmers

RuralVoice, 13 Jan. 2025, Sweta Saini, Pulkit Khatri

India's agricultural landscape is dominated by small and marginal farmers (86%), many of whom struggle with limited resources and bargaining power due to small landholdings. To address these issues, the Indian government has encouraged the formation of Farmer Producer Organizations (FPOs), which serve as legal entities aimed at improving farmers' market access, resource pooling, and bargaining power. However, FPOs face several challenges that hinder their effectiveness. In this brief article, I state some of those aspects and suggest ways for improving their performance and impact.

But first, some context:

1. An FPO is an economic entity operating in a social setup. It is structured to improve the economic well-being of farmers while functioning within the community-driven, cooperative nature of rural settings.

a. As an economic entity: FPOs focus on economic activities like collective purchasing, production, processing, and marketing of agricultural products. By pooling resources, they enhance profitability and sustainability for their members. Operating as businesses, FPOs generate revenue and, in some cases, distribute profits to members, contributing to rural economic growth by boosting farmers' incomes and overall productivity.

b. Social setup: FPOs are embedded in the social fabric of rural areas, focusing on the collective welfare of small and marginal farmers. They aim to reduce poverty, promote sustainable agriculture, and enhance local capacity. FPOs encourage cooperation, shared decision-making, and mutual support among members, offering training on sustainable practices. Additionally, FPOs help address social challenges such as rural unemployment, gender inequality, and rural-to-urban migration by creating local opportunities.

2. FPOs and cooperatives: FPOs and cooperatives share a common foundation in collective farming, but they differ in focus and structure. While cooperatives are strong in areas like crop loans, lending, and agricultural inputs, FPOs tend to specialize in value addition, product diversification, and aggregation—areas where cooperatives have less of a presence. This distinction makes FPOs more relevant for modern agricultural needs such as processing and marketing, while cooperatives excel in more traditional functions.

3. Self-help groups (SHGs) are mostly informal groups, but FPOs are legal entities: They are typically not legal entities by default and formed through mutual agreement by members who share common financial or social goals, such as saving, lending, or small-scale entrepreneurship. However, there are ways for SHGs to gain legal recognition if they wish to formalize their structure. An FPO, on the other hand, is a legal entity registered under the Companies Act, 2013. In many states, members under SHGs come together to form the foundation of an FPO.

4. Financial support for the FPOs: Under the 10,000 FPO Scheme launched by the Indian government, each Farmer Producer Organization (FPO) receives substantial financial support to help with initial setup, operational expenses, and capacity building.

This support typically includes:

a. Up to Rs. 18 lakh per FPO for initial setup and operations;

b. Credit guarantee of up to Rs. 2 crore for easier access to loans;

c. Seed capital of Rs. 15,000 per SHG member (if applicable);

d. Training and capacity building support through POPI/CBBOs.

Apart from the rent of the FPO’s office, the salary of the CEO is also paid for the initial three years of the FPO’s operations. Under the scheme, the salary is typically set around Rs. 25,000 per month, depending on the region, size of the FPO, and other factors.

Opportunities or Challenges?

There were about 44,460 FPOs created between 2003 and September 2024 (TCI 2024). As per data from Ministry of Corporate Affairs (MCA), about 40% are not active today. Of the remaining 26,938 active FPOs, 42% did not submit their financial statements in 2023. In other words, only about one-third registered FPOs are active and compliant. What could be the issues? Are they more structural or operational in nature? In our study of FPOs across Bihar, Maharashtra, Odisha, and Madhya Pradesh, we identified some:

1. Overemphasis on grant-funded startups: Many FPOs, particularly those formed under the 10,000 FPO scheme, were driven more by the pursuit of government grants than by sustainable business models. After the initial funding phase, these FPOs struggle to operate without further financial support, leading to performance challenges or even closure. Ironically, older FPOs that have operated without grants before the scheme's launch receive no similar support, despite having successfully sustained operations.

2. Lack of long-term vision and mismanagement: Many new FPOs were established without proper planning, market research, or leadership training, resulting in poor management. This lack of clear strategy and technical expertise often led to operational failures, with some FPOs failing to develop viable income-generating models and becoming overly dependent on grants.

3. Focus on quantity over quality: The government's target to establish 10,000 FPOs created a focus on numbers rather than quality. Many FPOs were formed just to meet these targets, without adequate support systems or plans for member engagement, leading to weak operational foundations.

4. Sustainability challenges: After initial funding, many FPOs struggle with market access, value addition, and aggregation. Without strong market linkages or infrastructure for processing and storage, many FPOs are unable to diversify products or improve profitability. This makes long-term sustainability difficult.

5. Insufficient capacity building and training: Many FPOs lack essential training in business management, marketing, and organizational skills. The FPO’s Producer Organization Promotion Institution (POPI) or cluster-based business organizations (CBBOs) do assist with training, but practical application remains a challenge for many FPOs.

6. Limited market access: A significant hurdle for many FPOs is securing reliable market access, often selling at low prices or through middlemen. This limits their ability to offer better earnings for members and hampers growth potential.

7. Inadequate member participation: Many FPOs struggle with low member engagement, which hampers decision-making and weakens overall support for organizational activities. Without active participation, executing plans becomes challenging.

8. Regulatory and administrative challenges: Navigating complex administrative requirements and legal frameworks can be burdensome, especially for smaller FPOs with limited management experience. These hurdles discourage some from maintaining active status.

9. Infrastructure and logistics shortages: Inadequate infrastructure, including storage, transportation, and processing facilities, particularly in remote areas, affects FPOs' ability to add value to products, avoid spoilage, or reduce costs.

10. Leadership challenges: The task of an FPO’s CEO is tough and often leads to disincentives and burnout. The existing salary for CEOs (often Rs. 25,000/month) is low making it difficult to attract or retain skilled leadership. This further affects the effectiveness of FPOs.

Here are some key policy suggestions to improve the effectiveness of FPOs:

1. Create a digital decision dashboard: A national-level repository for all FPOs can track key data such as area of operation (crop types, fisheries, etc.), financial performance, and membership demographics. This dashboard would facilitate two-way communication between the government and the FPOs, help monitor performance, provide feedback, and align government schemes more effectively.

2. Customize support to FPOs using analytics: By assessing FPOs based on age, turnover, and turnover per member, analytics can determine the type of support required (capacity building, credit, and market linkages). This would ensure targeted interventions like business development for older FPOs with low turnover and financial support for younger ones with high turnover.

3. Focus areas for FPOs: Metrics derived from the dashboard can categorize FPOs based on geography, commodity, and policy focus (e.g., sustainability, income generation, and climate resilience). This would guide policy decisions and provide snapshots at both state and national levels.

4. Review FPO member criteria: Rethinking the minimum number of farmers per FPO and FPOs per block could help align with local agricultural contexts. The focus should shift from strict member counts to land-based criteria, and regional discussions on block-level distribution should be encouraged to avoid competition and operational challenges.

5. Formulate award and reward systems: A tiered reward system for FPOs, based on factors like productivity, innovation, and social impact, can motivate excellence and best practices. This system would recognize both small and large FPOs, fostering a culture of continuous improvement.

6. Incentive systems for leadership sustainability: Providing competitive remuneration and performance-based incentives for CEOs and Board of Directors (BODs) will help ensure leadership stability and active participation in FPO management. Regularly reviewing the compensation structure can align it with the needs and goals of each FPO.

Addressing these operational and structural issues is crucial for transforming FPOs into sustainable, thriving organizations.

(Shweta Saini is an Agricultural Economist, Founder & CEO, Arcus Policy Research. Pulkit Khatri is an Agricultural Economist, Lead (Local Voices), Arcus Policy Research)

8. Primary Agricultural Credit Societies: Achieving the last mile in financial inclusion & sustainable rural development

ET Gov. 29 Jan. 2025

NABARD has been implementing a scheme for computerization of 67,930 functional PACS across India for improving the latter’s efficiency, internal controls, and transparency in operations.

The United Nations Organization (UNO) has declared 2025 as the international year of cooperatives. ‘Cooperatives build a better world’ will be the theme of the year.

This theme is meant to highlight the resilience of cooperatives, and the enduring impact that these organisations are having on global development. In its report on the trend and progress of Indian banking for the year 2024, the Reserve Bank of India has reflected on the importance of cooperatives.

Credit Cooperatives at a Glance

According to the Ministry of Cooperation, India has around 8.24 lakh cooperatives spread across 29 sectors, with a total membership of approximately 30 crore, as on December 31, 2024. Out of these, housing cooperatives (23.5%); dairy cooperatives (17.8%); and Primary Agricultural Credit Societies (PACS; 12.2%) are the major categories.

As per the RBI’s report, there are 1,09,433 credit cooperatives operating across India. Out of these, 1,07,961 are Rural Credit Cooperatives (RCCs), and 1,472 belong to Urban-Cooperative Banks. Further, the RCCs are broadly classified under two categories: short-term and long-term credit cooperatives. Though short-term RCCs held a market share of 96.3% in cooperative credit, their share in total credit to agriculture declined from 13.4% in 2016-17 to 9.5% in 2024.

However, the share of Scheduled Commercial Banks (SCBs) in total credit to agriculture enhanced from 75% to 79.4% during the same period mainly due to disruptive technology, and expansion of their rural branches.

Out of the 1,07,961 RCCs, the PACS had the lion’s share of 99.07%. State Cooperative Banks (34 Nos.) and District Central Cooperative Banks (351 Nos.) are the minor players in short-term rural cooperative credit space. In fact, the PACS play a key role in credit delivery in respect of crop loans and working capital loans to farmers and artisans due to their grass root level presence in rural India.

Performance of PACS

Cooperatives are based on ethical values of honesty, openness, social responsibility, and caring for others/members. The PACS form the lowest rung in the rural cooperative credit ladder with individuals as member shareholders. Select financial indicators of the PACS are reported in Table1. The total number of PACS increased from 1,02,559 to 1,06,955 thereby expanding their outreach by 4.29% during the period 2021-23.

Besides, the share of viable PACS increased from 70.74% to 79.14% during this period. The PACS had a total membership of 16.04 crore, constituting small farmers (45.55%), rural artisans (4.55%) and marginalized sections of the society as of March, 2023.

Further, total deposits of the PACS rose by 15.4%, whereas their loans declined by 12.92% during the period 2021-23 according to Table 1. Total loans of the PACS stood at Rs.1,88,842 crore as on March 31, 2023, out of which the share of loans to agriculture was at an elevated level of 78.76%. The borrower to member ratio – a key metric to measure credit penetration of the PACS - increased from 28.60% to 30.70% during FY2023, though it declined in FY2022.

Total net losses of all PACS in India reached to Rs.1,444 crore as of March 31, 2023 mainly due to concentrated loan portfolio in agriculture, high gross non-performing assets (23.30%), low recoveries, and escalating overheads.

While only the PACS in the Western region posted net profits (Rs.65.20 crore), PACS in the Southern region made the highest net losses (Rs.1,045 crore) during FY2023. Though there was a healthy dip in the gross Non-Performing Assets (GNPAs) of PACS during 2021-23, there is a tremendous scope for improvement in this regard since the gross NPAs of the SCBs stood at just 2.70% as of March, 2024.

Having said that, the PACS performed better than the long-term credit cooperatives (State Cooperative Agriculture and Rural Development Banks; and Primary Cooperative Agriculture and Rural Development Banks) in terms of financial soundness indicators such as higher deposits to total liabilities (56% vs 7.2%), and lower net NPAs (11.2% vs 38.2%) in the FY 2023.

The Way Forward

The PACS are the right vehicles in the development odyssey of an agrarian economy like India since they are serving the unserved or underserved rural population. Along with Farmer Producers Organizations, the government of India has been promoting the PACS for achieving financial inclusion in rural India.

NABARD has been implementing a scheme for computerization of 67,930 functional PACS across India for improving the latter’s efficiency, internal controls, and transparency in operations. Apart from elected members, the cooperatives have a government appointed Registrar to take decisions, therefore, it would be a good idea that the PACS too follow ‘fit and proper criteria’ in selecting the right people for good governance. This criteria include the candidate’s requisite qualifications, relevant experience, impeccable integrity, and proven track record.

As less than half of the PACS recorded profits (44.7% in FY 2023), they need to improve their commercial viability and financial sustainability through innovative recovery of loans, rationalization of manpower and reduction of overheads. Going forward, they must stay vigilant about cyber threats and economic uncertainties and adapt themselves to technological disruptions. By addressing their legacy and compliance issues, they should remain relevant in the dynamic financial landscape in order to achieve the last mile in (digital) financial inclusion and sustainable rural development.

(The author is Director, Centre for Agri-Business Management, MANAGE views expressed are personal)

9. Agriculture Sector Atmanirbhar Bharat: Reorientation of agriculture sector through technology to support the mission of Atmanirbhar Bharat

ET Gov. 16 Jan. 2025

The farm equipment should be so designed that they reduce farmers’ dependence on fossil fuel.

India happens to be the 7th largest country in the world if one goes by cultivable land area. Government of India has estimated total cropped area to be 219.16 million hectare as per PIB release dated 30 July 2024. Likewise, India’s population is estimated to be 1.45 billion in 2024.

Thus, the status of the most populous country has reduced the per capita cropped land availability to mere 0.15 hectare. With such a small per capita cropped area, coupled with requirements of sustainability and extremities of nature, Indian agriculture needs to undergo transformation for India to maintain food security of her citizens and also to remain a net exporter of food in future.

This calls for a review of current agricultural practices; productivity of land, seeds and agriculture workers; policies for profitability in agriculture and partnerships among farmers, industry, academia and government.

Current Status

Faced with multiple challenges of building the nation, conquering the wars, paucity of resources and low agricultural yield in years leading to 1960s, the then government took a policy decision to remove the shame of hunger from the country.

Farmers and scientists in the laboratories of Indian Council of Agriculture Research (ICAR) and Agriculture Universities across India, ably supported by governments and international cooperation, transformed the country from net importer to net exporter in many agricultural commodities through green, blue, white and other revolutions.

However, even today, the country remains net deficient in pulses and oilseeds. In fact, as per NABARD report of 2022, India is the largest importer of edible oil in the world. Perhaps, enough focus was not given to these crops, or the country is yet to make a technological breakthrough.

Some publications have also blamed policies of successive governments for large-scale import of edible oils, year after year. With agriculture still not becoming a profitable venture, we need to dig deeper into the agriculture ecosystem, evaluate issues, identify prick-points and arrive at solutions, solutions that are not only acceptable to stakeholders but also implementable.

A little closer scrutiny of the agriculture sector reveals that there are three types of issues that need to be addressed in agriculture.

These are small and marginal land holding leading to issues of scale, affordability and sustainability; farming practices like indiscreet use of fertilizers, pesticides, herbicides and water, etc. on one hand and continuation of old practices on the other, perhaps, due to insufficient extension services; and environmental effects like global warming, extreme weather events, pollution of air, water and soil etc.

Farming and Technologies

The above issues have found traction in the community of scientists and policy makers, more often with a narrow lens. The side effects of the green revolution have been proposed to be solved by modern engineering developments.

The fancy names of precision engineering, regenerative engineering etc. boil down to usage of full scale farm mechanization, drones, AI, block chain, geo-spatial technologies, deep learning, image processing etc. Some new approaches for bio-fortification and genetically modified crops have also been worked out.

While the effect of precision agriculture etc. will be evident in a little longer run, the usefulness of bio-fortified crops is beyond doubt (e.g. high-iron pearl millet varieties now provide up to 80% of daily iron needs; zinc rich wheat varieties provide up to 50% daily zinc needs). The important question now is whether these technologies can be afforded by farmers of India, 85% of whom are small and marginal.

It is reported that only 26% farmers across India have adopted new paddy cultivars, with 74% still holding onto the old ones. Likewise, in the absence of affordable solutions, approximately 92 million tons of farm residue is burnt every year. This residue, having high calorific value, has the potential of becoming an additional source of income for the farmers.

Animal waste and cow-dung piles can be seen in village after village without realizing their energy potential. The initial high cost of setting up micro-irrigation has made it unpopular among small and marginal farmers even though water has become a scarce commodity in the river-worshipping country that is Bharat. An additional issue the country faces is that most tillers are not the landowners, leading to lack of motivation to adopt newer methods.

Lack of motivation to adopt newer techniques has also led to skill deficiency in agriculture workers. On an average, Indian agriculture workers are estimated to be at least 3 times less skilled than their counterparts in China.

A general tendency in discussions is to find the methods adopted by countries like the USA, Australia, Russia, China etc. and replicate them in our country. This is unlikely to work. The average landholding per farmer, and therefore farming requirements and techniques, in Russia are estimated to be up to 20,000 acres for large agribusinesses, while small farms are of 600-700 acres. Australian farmers are reported to possess 4331 acres on an average.

These figures for the USA and India are 179 acres and 1.08 acres respectively. Further, land parcels of Indian farmers are mostly scattered, thus complicating the matter further. The ecology, the terrain, the climate cycles etc. are all different in these countries. Thus, what has worked, or may be working, in other countries need not necessarily work in India. So, what may work for India and how should it move forward?

Suggestions

The first and foremost issue of skill deficiency needs to be tackled by the Skill India Mission and Education and Agriculture ministries of the states and the Union. These include revamping of extension departments in agriculture universities; retraining and repurposing KVKs; modification in curriculums of UG and PG courses, revamping B.Tech.

Agriculture Engineering course, providing an avenue of a minor degree in agricultural sciences and engineering to UG engineering students in the form of AgriTech (Agriculture Technology) or RuTech (Rural Technology), devising certification courses for farmers with hands-on exposures etc.

Secondly, the issue of small and marginal farm sizes may be tackled by a policy of notional pooling of farms. The farmers and their organizations need to be taken onboard while forming such a policy to bring out positives and allay their fears if any.

The third issue is farming machinery. With small farm sizes, we do not need large tractors that are being produced and sold in the country. Also, with women in agriculture, these equipment need to be women friendly. We may also need to produce equipment that can be employed in hilly terrains and high altitudes.

The farm equipment should be so designed that they reduce farmers’ dependence on fossil fuel. Use of bioenergy and hydrogen cells in farming equipment may be one such possibility. Such technologies do exist in the country.

The country also needs to invest in next generation technologies. Engineering, especially the manufacturing and computing industry, is turning to biological or bio-inspired processes. Perhaps, agriculture scientists and technologists also need to evaluate whether this can be useful to them to produce seeds and devise processes for climate resilient agriculture.

The World Economic Forum has identified top 10 technologies that will revolutionize the world in time to come. At least 3 of those 10 belong to agriculture: designer phages, plant wearable sensors and spatial ohmics.

Phages are engineered viruses to augment human, animal and plant health by providing targeted solutions for pest control, soil improvement and reduction of pathogen transfer from farm to animals. A similar technology, though with natural bacteria, has already been demonstrated in bio-toilets in India. R&D is also going on for explosive neutralizing bacteria/viruses in the country.

Plant wearable sensors will revolutionize data collection. They will not only increase the resolution but also the accuracy by directly measuring plant parameters like temperature, humidity, pH level, moisture, nutrients etc. These measurements will then lead to treatment of individual plants through vaccines, control of inputs like fertilizers, water and pesticides.

Combined with already established technologies like IoT, low power wide area network, cloud computing and mobile apps, the farmer will have full information and control on his crop through his fingertips. Human wearable sensors are already in the market. Hence, the technology is not new. The newer elements are miniaturization and extremely high-energy efficiency.

Spatial Ohmics provide molecular level mapping of biological processing to unlock mysteries of nature. Scientists have already reported construction of a 3D atlas of fruit fly larvae and organ development process of mouse embryo.

These processes are now being applied to plants to understand plant biology for making them pest resistant, climate resistant, needing less water, improving nutrients, and leaving fewer imprints on the environment etc. The west seems to be now fully convinced about plant biology suggested by JC Bose way back in 1901.

Digital Twin technology may also be useful in realizing regenerative agriculture practices, i.e. produce higher yields and enhanced nutrition with reduced environmental impact and less water, fertilizers and pesticides.

It may be worthwhile for agencies like ICAR to look at these possibilities and more, if not done already, and work out India-specific technology development plans. A close cooperation among agriculture scientists, biologists and technologists should bring revolutionary concepts in changing the face of Indian agriculture.

Conclusion

Apart from techniques, technologies, seeds and machinery as suggested above, the country also needs to develop agriculture and an S&T friendly policy framework. New initiatives require resources as well. With every sector of the economy asking for more resources from the limited overall kitty, the allocations will always remain constrained.

The constraints can be overcome if the freebie offerings (including those to elected representatives) by political parties to electorates can be diverted to research and technology infrastructure; policies to de-risk research can be promulgated; mutually beneficial model of partnership among farmers, industry, academia and government can be worked out; and a proper implementation and monitoring mechanism can be set up.

One hopes that all stakeholders will come together at the earliest and a resilient agriculture sector will emerge in India to fully support the mission of Aatmnirbhar Bharat and Developed India @2047.

(The author is former DG, DRDO and Professor of Practice at IIT Delhi; Views expressed are personal)

10. Revising standards for organic agricultural products: A leap towards sustainability & growth

ET Gov. 22 Jan. 2025

Integrating specific guidelines for millet cultivation and certification under NPOP will enable farmers to capitalize on the growing global demand for these superfoods.

The National Programme for Organic Production (NPOP), launched in 2001 under the Ministry of Commerce and Industry, has been the cornerstone of India's organic agriculture sector. Over the years, it has facilitated the systematic development of organic farming by ensuring quality assurance and enabling international market access for Indian organic products.

The programme's editions include the First Edition in May 2001, Second Edition in January 2002, Third Edition (Consolidated Version) in November 2002, Fourth Edition in June 2003, Fifth Edition in June 2004, Sixth Edition in May 2005, and the Seventh Edition in November 2014. These periodic updates have ensured the programme's relevance and adaptability in a rapidly evolving international organic landscape.

Administered by the Agricultural and Processed Food Products Export Development Authority (APEDA), NPOP outlines comprehensive standards for organic production, certification, and the use of the India Organic logo. This robust framework has played a pivotal role in establishing India as the second-largest country in organic agricultural land and the largest organic producer globally.

The revision of NPOP released on January 9, marks a pivotal moment for the organic farming sector. The new standards aim to align India's framework with the latest European Union (EU) regulations, incorporating changes in the international organic landscape over the past decade. This alignment is critical, as India’s major export destinations include the EU, USA, Canada, and Australia, which collectively account for significant demand for Indian organic products.

India’s organic sector has witnessed remarkable growth, with the total certified organic area expanding to 7.3 million hectares in 2023-24. Organic production reached 3.6 million metric tons, encompassing a diverse range of products such as oilseeds, cereals, sugarcane, and millet. According to the FIBL and IFOAM (International Federation of Organic Agriculture Movements) Year Book 2024, India ranks 2nd globally in terms of organic agricultural land and 1st in the total number of organic producers.

Exports have also surged, with organic food export realizations reaching INR 4007.91 crore (USD 494.8 million) in 2023-24. However, achieving the ambitious USD 2 billion export target by 2030 will require enhanced standards to meet global expectations and sustain this growth trajectory.

Catalyzing Sectoral Growth

The revised NPOP standards will transform India’s organic agriculture by enhancing regulatory clarity and oversight through data analytics, boosting confidence among farmers, exporters, and international buyers. Adopting EU-equivalent standards will open new markets, deepen India's existing foothold, and increase export volumes and revenues.

Domestically, the revisions will promote organic farming as a sustainable alternative, addressing environmental concerns and ensuring chemical-free, nutritious food for consumers. The participatory guarantee system under the Ministry of Agriculture will further encourage small and marginal farmers to adopt organic practices.

Key benefits include simplified certification for farmers, leading to fairer prices and reduced costs. A study by FiBL in Switzerland found that simplified certification for smallholder farmers in Latin America reduced costs by 15-20 per cent. Similarly, India’s NPOP has introduced simplified procedures for smaller producers, making certification more accessible as highlighted in APEDA reports.

Improved market access for exporters will boost India’s credibility globally, with alignment to EU regulations facilitating trade. Between 2018 and 2022, India’s organic exports to the EU grew at an annual rate of 15 per cent (APEDA). Higher-quality products for consumers will result from organic farming, as research by USDA shows higher levels of nutrients and antioxidants in organic crops. Consumer surveys (Nielsen, Statista) confirm strong demand for organic products due to health and environmental benefits.

Way forward

The upcoming revision of the National Programme for Organic Production (NPOP) is a timely and strategic initiative poised to reshape India’s organic agriculture landscape by addressing existing gaps and aligning with global standards. The revised NPOP is expected to enhance market access, empower farmers, and boost exports.

To ensure successful implementation, key policy recommendations include investing in farmer training and capacity-building programs to equip farmers with the knowledge and skills necessary for organic farming practices and strengthening the role of farmer producer organizations (FPOs) in collective bargaining, market access, and resource accessibility. Promoting public-private partnerships to support organic infrastructure development, such as processing facilities, cold storage, and transportation, is essential for the efficient movement of organic produce.

Additionally, integrating specific guidelines for millet cultivation and certification under NPOP will enable farmers to capitalize on the growing global demand for these superfoods. With the UN designating 2023 as the "International Year of Millets," this presents an opportunity to position Indian millets as a flagship organic product globally. By prioritizing millets and implementing these measures effectively, India can solidify its leadership in sustainable and health-focused agriculture, achieve its USD 2 billion export target, and set new benchmarks in organic farming.

(The authors are senior academics at Sathyabama Institute of Science and Technology; Views expressed are personal)

- Industry and Manufacture

11. When it Comes to Single Malt, Indians Still Prefer the OGs

ET, 14 Jan. 2025

The firsts among equals in Indian single malts have not been dislodged by the Covid-19 pandemic, slowdown and changing tastes pampered by a flurry of brands from Indri and Godawan to Ranthambore and Longitude launched since 2020.

The “original” single malt makers Amrut Distilleries and John Distilleries, saw their sales increase 36% to Rs 1,543 cr and 24% to Rs 7,849 cr, respectively, in 2023-24, significantly faster than in the previous few years, belying expectations that newer brands would hurt their revenue as consumers widen their repertoire with local malts at their home bars beyond scotch. In 2022-23, these companies had reported 23% and 14% growth, respectively.

“While the demographics haven't changed, youngsters are taking up to single malts and Indians are aspiring for other malts beyond scotch, American or Japanese. With the buzz around the segment through word of mouth, it has also added newer recruits which has helped all the players including us," said Rakshit Jagdale, managing director, Amrut Distilleries.

Amrut and Paul John were the first ones to launch Indian single malt in the 2000s. However, in the past three years, the market saw additional suppliers such as Piccadily Agro, which launched Indri and Kamet, international players including Pernod Ricard and Diageo which added Indian brands such as Longitude 77, Epitome Reserve and Godawan to portfolios, and domestic distillers like Radico Khaitan, which have Rampur and Ranthambore. Late last year, Allied Blenders and Distillers Limited launched blended malt scotch whisky brand Arthaus.

For decades, the success of single malts has been closely tied to perceptions about age, quality and price—the older the better, and more expensive. Indian single malts don’t carry age statements because of local climatic conditions.

12. 10th Year of Startup India Action Plan: transformative journey for India's startup ecosystem

ET Gov. 17 Jan. 2025

At the heart of the Startup India Action plan was the Fund of Funds for Startups (FFS), launched by GoI in 2016. Over the last decade, many of us have realised how essential a vibrant knowledge and innovation driven startup ecosystem is for our journey towards Viksit Bharat @2047. As widely known, India's startup ecosystem is at present the third largest globally, following the USA and China.

However, just nine years back, the startup ecosystem in the country was virtually non-existent; at best, fledgling. It is a testament to the foresight and vision of our Hon’ble Prime Minister that the Startup India Action Plan was launched in January 2016 with the objective of building and scaling up the country’s startup ecosystem.

The action plan was piloted and implemented by DPIIT, Ministry of Commerce & Industry by putting in place a complement of measures focussed on ease of business, handholding, access to finance/ funding and incubation/ industry – academic partnerships. As we enter the 10th year, we can only but marvel at the way the nation’s collective entrepreneurial spirit responded to this Government of India initiative and transformed the startup ecosystem to where it stands today.

In 2016, funding of startups was extremely challenging due to variety of well understood reasons revolving around risk perception arising from young untested entrepreneurs/ business models and skills sets needed to assess and mentor such businesses. One of the key requirements therefore was enabling capital formation and funding / access to finance for startups.

Accordingly, at the heart of the Startup India Action plan was the Fund of Funds for Startups (FFS), launched by GoI in 2016. As an unprecedented signal of support for the startup ecosystem, the FFS was allocated an ambitious corpus of ₹10,000 crore. Further, rather than directly investing in startups, FFS adopted a "fund-of-funds" approach, channelising into Alternative Investment Funds (AIFs) that, in turn, invest in startups across diverse sectors. This model was designed to address two critical gaps:

Bridging the funding gap for early and growth-stage startups.

Attracting private and institutional capital into the ecosystem by creating a multiplier effect and consequently enabling formation of capital pools in the country for funding startups.

Small Industries Development Bank of India (SIDBI) was entrusted with managing the corpus. The implementation model adopted the best of public – private partnerships.

Transformative Impact of FFS

Over the years, FFS has not only fulfilled its objectives but has also exceeded expectations in multiple ways. Some significant areas of impact of the initiative are as under:

The commitments to AIFs out of FFS have exceeded ₹10,000 crore and this pool has developed into catalytic capital which has enabled the AIFs to mobilise a corpus to the tune of ₹90,000 crore.

Nearly 1,200 startups across sectors such as technology, healthcare, agritech, fintech, and clean energy have been empowered to innovate, scale, and compete globally with investments aggregating ₹21,000 crore.

A remarkable multiplier effect has been demonstrated, leveraging every rupee of government funding to attract several rupees of private investment. This has significantly expanded the pool of capital available to startups, reducing dependency on foreign funding and strengthening India's financial autonomy in the innovation space.

The scheme has seeded good number of first-time fund managers resulting in deepening of the AIF industry and fostering a robust community of fund managers with expertise in identifying and nurturing high-potential startups.

A heartening outcome is that the funding has been increasingly inclusive, with startups from smaller centres have not only benefitting from the funding but also through development of the local ecosystem.

Similarly, encouraging outcomes have been reported for women led fund managers as well as women led startups.

The startups though in early stage have collectively generated over 2 lakh jobs and as they scale up, this number will increase. The availability of funding options for the youth is encouraging more and more to opt for becoming job creators rather than job seekers. Today, the youth in the campuses are seen talking more about starting their own startup ventures than thinking about lucrative corporate jobs.

While achieving the aforesaid outcomes, the funding while developmental in nature, is on track to deliver returns and conserve capital for the Government to be redeployed in similar initiatives.

The Road Ahead: FFS2.0

The scheme/ initiative has demonstrated the catalytic effect of sovereign capital on emerging sectors.

A key outcome of the Startup India Action plan / availability of funding has been the emergence of new / sunrise sectors with the capital facilitating innovation/ IP creation in deep tech sectors including defence tech, space tech, bio tech/ bio sciences, semiconductors, climate tech,

All these businesses/ business models / innovations have emerged only in the recent 5-6 years pursuant to the Startup India initiative. The focus should now be on replicating the FFS experience to exponentially scale up these enterprises which shall provide Amtanirbharta and help achieve the nation’s goals for 2047.

Thus, while continuing the existing momentum, the future roadmap will look at emerging sectors which are poised to drive the next wave of innovation and economic growth.

Vision for A Nation of Innovators

The success of the Startup India initiative reflects India’s commitment to innovation and entrepreneurship. It is testimony to the visionary leadership of the Government of India and collaborative efforts of all ecosystem stakeholders. As we celebrate the 10th year of the initiative, it is time to reaffirm our dedication to building a nation of innovators, where startups not only contribute to economic growth but also drive nation building/ strategic national goals as well as societal transformation.

India’s startup story is a story of dreams, resolve and limitless possibilities. We are confident that the Startup India initiative and the FFS will continue to be cornerstones of this narrative, powering India’s rise to become the innovation capital of the world.

13. FMCG Sorts the Quick from the Kirana, Price-wise

ET, 17 Jan. 2025

That ₹10 packet of Parle-G may soon disappear from your quick commerce app. So will some other regular packs of consumer goods firms, which are reworking their channel strategies to protect neighbourhood stores, while also aligning them with changing shopping habits.

The likes of Hindustan Unilever, ITC, Parle Products and Adani Wilmar have begun launching packs at different price points specifically for quick commerce — a trend that industry executives said will only gain traction. General trade accuses these platforms of eating into its business with predatory pricing and other unfair practices.

Parle has launched separate packs of popular brands like Parle-G, Hide & Seek, Krack Jack and Monaco for quick commerce, priced ₹50-100. The small biscuit packs, priced up to ₹30, will be available only at kiranas. Large retail chains such as Reliance and DMart, more popular for monthly shopping, will sell packs priced ₹120-150.

“Quick commerce has been mostly bundling small packs meant for kiranas, which was creating conflict with general trade,” said Mayank Shah, vice-president at Parle.

“Hence, we decided to roll out these separate packs for quick commerce to avoid conflict with general trade. The response is very good,” said Shah of Parle.

ITC has launched separate quick commerce packs for brands including Engage perfume, Savlon handwash and Mangaldeep incense.

The country’s largest packaged edible oil company, Adani Wilmar, is going to launch a separate brand for quick commerce for both cooking oil and staples like pulses. Hindustan Unilever, the leader in the consumer goods market, has also started to roll out separate packs.

Angshu Mallick, chief executive of Adani Wilmar, said a separate brand for quick and the rest of ecommerce is being planned. It will be priced slightly higher than those sold in kiranas since consumers buying from quick commerce are better off and tend to do higher value purchases, he said.

The contribution of quick commerce to ecommerce sales for these companies has almost doubled in 2024 to 35-40%, according to a report from Nuvama Institutional Equities last week.

Quick commerce started off as a top-up service for last-minute purchases for groceries and small-ticket items, but is now the fastest growing sales channel, often at the cost of kirana stores.

According to a report from ecommerce consultancy Datum Intelligence in November, more than 82% of buyers it surveyed had moved at least a quarter of their kirana purchases to quick commerce and 5% had stopped buying from their neighbourhood outlets. ET reported last year that consumers are also increasingly ordering large monthly packs from these platforms.

Distributors of consumer goods have requested the government for scrutiny of the operations of quick commerce platforms. They have also approached consumer goods companies.

Arun Neelakantan, executive director for customer development at HUL, said quick commerce and kiranas will coexist. “Consumers are not shopping for different missions in different formats. We haven't seen a drop in sales or consumption at kirana stores. It is also by stocking different portfolios and pack sizes, (that we) ensure they cater to the shopping missions that might come up,” he said.

An ITC spokesperson said pack varieties differ for different product categories amid general trade and quick commerce, depending on consumer trends and value-seeking behaviour.

14. Women’s participation in MSME sector: Unlocking potential for economic growth

ET Gov. January, 2025

The participation of women in the MSME sector plays a key role in enhancing the nation’s economic growth and creating a more progressive and egalitarian society. The backbone of the Indian economy, the Micro, Small, and Medium Enterprises (MSME) sector, significantly contributes to creating employment opportunities, raising exports, and enhancing the nation’s GDP growth. With 6.38 crore units as per IBEF data, the sector accounts for approximately 30% of the country’s GDP and 45% of exports.

The MSME sector has generated employment for over 20 crore people in India, not just offering livelihoods but also helping them achieve their dreams and driving innovation for a brighter future. The government has been actively working on providing support to the sector through a range of schemes and initiatives, some specifically focused on empowering female entrepreneurs.

Women’s participation in the MSME sector has been going up steadily, with approximately 20% of MSMEs in India owned by women entrepreneurs, contributing 18.73% to employment.

In addition to contributing to their local communities, women are also enabling overall economic development through their ventures in a range of sectors, such as textiles, healthcare, handicrafts, and food processing etc. Even though there are millions of women-led businesses today, the potential of women in the MSME sector is still largely untapped.

Challenges Faced by Women in the MSME Sector

Women have been receiving growing support to set up businesses and transform their dreams into reality. The Government e-Market (GeM) portal in India has supported over 1.6 lakh women-led Micro and Small Enterprises (MSEs) and 25,000 startups since its launch in 2016. Women entrepreneurs in the MSME sector have come a long way, but they still face many barriers to grow.

Some of the major challenges faced by them include:

Difficulty in securing loans or investment to start a business due to a lack of collateral and credit history.

Lack of skills that are essential to start and run businesses, which include technical, financial, and managerial skills.

Gender norms and stereotypes which demotivate women to pursue their dreams and set up their own businesses.

Limited networking opportunities and marketing capabilities leading to difficulty in connecting with broader markets.

The Growing Ecosystem of Support

Amid the rapidly expanding startup ecosystem, women entrepreneurs have raised around Rs.7,900 crore across 136 deals in 2024, which is a significant rise of 93.75% over the previous year, according to Inc42’s Indian Startup Funding Report 2024. Out of over 1.57 lakh startups recognized by the Startup India initiative, women are the founders or co-founders of around 50% of them.

The Ministry of MSME has taken many steps for empowering women entrepreneurs, one of them being increasing the CGTMSE credit guarantee coverage for women-owned micro and small enterprises to 90%. This move has already supported around 27 lakh women-led businesses, aligning with the government’s goal of providing Rs.5 lakh crore in credit guarantees over the next two years.

Additionally, the "Raising and Accelerating MSME Performance" (RAMP) scheme, launched in 2022, has supported 4 lakh MSMEs, with women-led enterprises making up over 38% of the registered businesses. These initiatives show the ministry’s strong focus on supporting women entrepreneurs and inclusive growth.

In addition to government initiatives, private organizations and NGOs are also working towards increasing the participation of women in the MSME sector. Many women-focused organizations are providing mentorship and incubation to women, helping them build and expand their ventures.

Separately, women are not only setting up businesses, but they are also becoming investors in other women-led ventures, empowering them and building a robust and supportive investment setup. An example of this is the $10 million Women in Digital Economy Fund (WiDEF) launched in 2024, which was set up with the goal to bridge the gender gap by offering finance, digital tools, and guidance to women entrepreneurs.

The Road Ahead

Even though women have come a long way, their full potential in the MSME sector is still not unlocked. For this, collaborative efforts are required across various levels. Financial inclusion is essential to empower women entrepreneurs as many of them still do not have the means to access credit and microfinance.

There is a huge skill gap which needs to be addressed by providing training to women in digital, financial, and managerial fields. The Government needs to step up and actively work on gender-specific policies, such as giving subsidies, tax-benefits, or making full-fledged industrial parks for women. Creating a supportive and inclusive networking ecosystem is also critical to connect women entrepreneurs with mentors, investors, and industry experts.

Conclusion

The participation of women in the MSME sector plays a key role in enhancing the nation’s economic growth and creating a more progressive and egalitarian society. The fact remains that uplifting women is not just fair but also a key strategy for making the country developed, both economically and socially. If provided with adequate support, women entrepreneurs have the unbridled potential to redefine the MSME landscape and drive transformative change.

(The author is National President, FICCI FLO; Views expressed are personal)

15. India’s digital economy to contribute one-fifth of national income by 2029-30: MeitY

ET Gov. 30 Jan. 2025

India’s digital economy has emerged as a significant contributor to its economic growth, accounting for 11.74% of the GDP (₹31.64 lakh crore or USD 402 billion) in 2022-23.

NEW DELHI: With the Indian economy digitalising at a remarkable pace over the last decade, quantifying and understanding the role of the digital economy in driving economic growth, employment, and sustainable development are essential for both policymakers and the private sector, said the Ministry of Electronics & IT (MeitY) on Tuesday.

According to the State of India’s Digital Economy Report 2024, India is the third largest digitalised country in the world in terms of economy-wide digitalization, and 12th among the G20 countries in the level of digitalisation of individual users.

India’s digital economy is expected to grow almost twice as fast as the overall economy, contributing to nearly one-fifth of national income by 2029-30. This means, in less than six-years, the share of digital economy will become larger than that of agriculture or manufacturing in the country. In the short run, the highest growth is likely to come from the growth of digital intermediaries and platforms, followed by higher digital diffusion and digitalisation of the rest of the economy. This will eventually lower the share of digitally enabling ICT industries in the digital economy, it said.

India’s digital economy has emerged as a significant contributor to its economic growth, accounting for 11.74% of the GDP (₹31.64 lakh crore or USD 402 billion) in 2022-23. Employing 14.67 million workers (2.55% of the workforce), the digital economy is nearly five times more productive than the rest of the economy.

The digitally enabling industries such as ICT services and manufacturing of electronic components, computers, and communication equipment, which form the core, contributed 7.83% of GVA (Gross Value Added), while digital platforms and intermediaries added another 2% of GVA.

Furthermore, digitalisation in traditional sectors like BFSI, retail, and education added 2% of GVA, showcasing the pervasive impact of digital transformation. Projections indicate the digital economy’s share will grow to 20% of GVA by 2029-30, outpacing agriculture and manufacturing.

Key growth drivers include the rapid adoption of AI, cloud services, and the rise of global capability centers (GCCs), with India hosting 55% of the world’s GCCs. GCCs are offshore centers established by multinational corporations to provide a variety of services to their parent organisations, including R&D, IT support, and business process management.

Digitalisation of traditional sectors

The primary survey and stakeholder discussions highlighted interesting facts about how different sectors are digitalising and their contribution to the revenue generated by firms. Not all aspects of businesses are digitalising uniformly. For example, retail sales are digitalising much more than wholesale sales. Firms are also investing in digital methods for customer acquisition and business development. Chatbots and AI applications are fairly commonplace, MeitY said.

In the BFSI sector, over 95% of banking payment transactions are digital, but revenue-generating activities like loans and investments remain largely offline, with financial services less digitalised overall.

Retail is shifting to omni-channel models, with e-tailers adding physical stores, while AI chatbots and digital inventory tools enhance efficiency.

Education has begun adopting offline, online, and hybrid models, with most institutions favoring hybrid approaches

Hospitality and logistics are embracing AI, metaverse, and digital tools, with large firms fully digitalising operations, while smaller players lag behind.

The way forward

By 2030, India’s digital economy is projected to contribute nearly one-fifth of the country’s overall economy, outpacing the growth of traditional sectors. Over the past decade, digital-enabling industries have grown at 17.3%, significantly higher than the 11.8% growth rate of the economy as a whole.

Digital platforms, in particular, have expanded rapidly, with an anticipated growth rate of approximately 30% in the coming years. In 2022-23, the digital economy accounted for 14.67 million workers, or 2.55% of India’s workforce, with the majority of these jobs (58.07%) in the digital-enabling industry. Though the workforce is predominantly male, digital platforms have contributed to increasing job opportunities for women, especially in sectors where mobility and safety concerns were previously barriers.

India’s digital economy is a key driver of both economic growth and employment, with an increasing role in empowering women in the workforce and creating new opportunities across various sectors. The rapid expansion of digital platforms signals an ongoing transformation that is set to shape the future of work in India, it added.

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

16. Mahakumbh 2025: AI-powered surveillance for enhanced security in Prayagraj, 2700 CCTV cameras installed

ET Gov. 17, Jan. 2025

As Prayagraj gears up for the historic Mahakumbh 2025, the city is embracing emerging technologies like AI to ensure seamless urban management and enhance citizen services. In an exclusive interview with Arpit Gupta of ETGovernment, Chandra Mohan Garg, Municipal Commissioner of Prayagraj Municipal Corporation, shares insights into the city’s ambitious AI-based surveillance initiative.

With over 2,700 CCTV cameras, including 400 AI-powered systems, the project aims to address key urban challenges such as waste management, traffic control, and crowd safety, marking a new era of smart, responsive governance in the city.

Edited excerpts:

The Prayagraj Municipal Corporation (PMC) has introduced AI-based citizen services management initiatives. How does this initiative work?

The Prayagraj Municipal Corporation has taken a significant step toward enhancing urban governance by incorporating Artificial Intelligence (AI) into our city management processes. This is the first initiative of its kind in Uttar Pradesh. We have integrated AI with daily city surveillance to streamline municipal services and ensure efficient management. Through this initiative, we have introduced AI-powered technologies that help monitor a variety of civic issues in real time, such as traffic management, waste collection, and city cleanliness.

What are the key technological components involved in this initiative?

As part of this initiative, we have installed around 2,700 CCTV cameras across the city, with over 400 of them being AI-based cameras. These cameras are primarily used for public surveillance, allowing us to monitor various urban issues such as barricades, parking, one-way traffic, and crowd density. Additionally, over 100 AI-based cameras are dedicated to video summarization, which helps us detect theft or track suspicious vehicles.

Mahakumbh 2025

For large events like the Mahakumbh, this technology ensures better crowd management. We have deployed high-resolution 360-degree cameras mounted on vehicles. These vehicles cover 150 kilometers of city routes, providing a comprehensive view of the entire city. The AI algorithms analyze the footage to identify anomalies, such as stray animals, potholes, non-functional streetlights, and waste collection issues.

How does AI tools assist in monitoring and managing the city’s services, especially during the Maha Kumbh 2025?

During the Mahakumbh 2025, citizen-centric services are being closely monitored by an AI-based surveillance system. We have deployed AI-enabled cameras across the city, which will track movement for efficient crowd management, a crucial task during such a massive event. AI tools will help us detect and address six major urban issues in real time—waste management, streetlight functionality, potholes, encroachments, illegal hoardings, and sanitation services. This allows for quick identification of problems and ensures that all necessary services are maintained smoothly, creating a safer and more efficient environment for devotees and residents alike.

How does this initiative improve governance and benefit citizens?

The core aim of this initiative is to create a smart, responsive, and transparent governance system. By automating the detection and resolution of urban challenges, we can enhance the quality of civic services. The real-time monitoring of various urban aspects ensures faster complaint resolution, improving urban living standards. The initiative also promotes greater transparency in municipal operations, which fosters trust and engagement among citizens. The system allows for optimized resource allocation, which ultimately improves the overall efficiency of municipal operations.

Can you elaborate on the system’s operational workflow?

The workflow is quite seamless. Vehicles equipped with 360-degree cameras traverse city routes daily, capturing footage. AI algorithms process the captured data and flag anomalies such as potholes, encroachments, and garbage accumulation. These issues are then categorized and geo-tagged, and reports are automatically sent to the SWM Control Room. From there, tasks are assigned to the appropriate municipal teams. Task completion is monitored to ensure accountability and timely resolution of issues.

What are the expected outcomes of this initiative?

We expect several positive outcomes from this initiative. Firstly, the urban environment will significantly improve—there will be cleaner streets, better-maintained infrastructure, and more organized public spaces. Additionally, by reducing manual inspections, we’ll be able to operate more cost-effectively. Lastly, this initiative will increase citizen engagement, as visible improvements will foster greater trust in municipal governance. We also hope that this project can serve as a model for other cities in India to replicate.

Is there any future expansion planned for this AI-based system?

The system is scalable. One of the future expansions includes integrating the system with citizen feedback applications. This would allow us to gather direct feedback from residents, creating a more holistic approach to governance. We also aim to further refine the system and expand its capabilities as technology evolves.

How do you see the broader social implications of this initiative?

The AI-based citizen services management initiative is a testament to Prayagraj Municipal Corporation’s commitment to transforming urban governance through technology. By leveraging AI, we’re not only improving civic services but also creating a more transparent, responsive, and citizen-friendly governance system. This initiative sets a benchmark for urban management, and I believe it will inspire other cities to adopt similar models for a smarter, more sustainable future.

17. India's growth paradigm: Shaping the future of global leadership

ET Gov. 24 Jan. 2025, Ram Ramchandran

As India continues its journey towards becoming a $10 trillion economy by 2035, the world will clearly look to India as a partner in driving global prosperity.

As the world looks for a new economic power, India’s remarkable ascent over the past decade stands out as a compelling model for global growth. Unlike traditional economies that followed industrial revolution-driven growth, India’s rise as a worldwide leader is much different — rooted in digital transformation, self-reliance, and sustainable innovation.

The Indian growth story is becoming a model that developing economies can emulate, and global businesses can collaborate. It is a story of a nation that, despite its complexities, has emerged resilient and future-ready, rewriting economic playbooks with its blend of tradition and technology.

The Indian Economic Ascent: From Resilience to Leadership

India’s economic trajectory has defied global headwinds. While many significant economies grappled with recessionary pressures, India emerged as one of the fastest-growing economies, with GDP growth projections of 6-7% annually over the next decade.

According to the reports, India is expected to account for over 15% of global GDP growth by 2030. The World Bank echoes this sentiment, recognizing India’s growth as a result of structural reforms that blend digital infrastructure with inclusive policies.

From becoming the 5th largest economy to positioning itself as a leader in digital public goods like Aadhaar and UPI, India’s ascent is unique because it combines economic resilience with societal impact. The Indian story is about creating a system that balances growth with inclusivity, innovation, and sustainability.

India’s Growth Paradigm: A Blueprint for Sustainable Development Self-Reliance

India’s growth model is powered by Atmanirbhar Bharat (Self-Reliant India), focusing on building domestic capabilities that can compete globally. Initiatives like the Production Linked Incentive (PLI) scheme have turned India into a competitive manufacturing hub in semiconductors, electric vehicles (EVs), and renewable energy sectors.

Take, for instance, the recent shift in semiconductor manufacturing. Once dependent on imports for critical components, India is now incentivizing global enterprises to set up domestic fabrication units. This addresses supply chain vulnerabilities and positions India as a crucial player in the future of technology. Similarly, the EV revolution, driven by government policies and incentives, is transforming India’s automotive sector into a global hub for sustainable mobility solutions.

Digital Revolution

India’s digital transformation is the most defining pillar of its growth story. Over the past decade, India has created one of the world’s most inclusive digital infrastructures through initiatives like Aadhaar, Unified Payments Interface (UPI), and the Digital India campaign. UPI processes over 9 billion monthly transactions today, showcasing how digital infrastructure can democratize access to financial services.

UPI has gained significant global traction in recent years, with initiatives in countries such as Bhutan, the UAE, Malaysia, and Singapore, along with collaborations extending to regions like Europe and Japan to foster seamless cross-border transactions. As the world increasingly embraces digital payments, India is extending its UPI system across multiple continents, further strengthening its digital influence.

Further, the next wave of India’s digital revolution will be driven by technologies like AI, GenAI, 5G, quantum computing, and blockchain. India is already taking bold steps in AI innovation, with government policies promoting responsible AI and ethical AI frameworks.

Leading the Global Green Transition

India’s growth story is also deeply aligned with sustainability. As one of the first countries to announce a net-zero target by 2070, India is taking concrete steps to lead the global green transition. Initiatives like the National Hydrogen Mission and investments in solar energy have already positioned India as a leader in renewable energy.

In manufacturing, India is rapidly becoming a hub for green technologies. Businesses are adopting circular economy models, reducing waste, and embedding sustainability into their supply chains. For instance, a leading Indian automaker has transformed its factories into “green factories,” using renewable energy, recycling water, and minimizing emissions. Such examples reflect a broader trend that India’s growth is sustainable, scalable, and globally relevant.

Economic Growth Projections: A New Global Growth Engine

According to an industry report, India is expected to contribute nearly 20% of global workforce growth, driven by its young demographic by 2030. The country's median age will be 31 by 2030. India's demographic dividend is a significant advantage, particularly as the world grapples with aging populations and workforce shortages.

However, it's not merely about having a young population. Initiatives like Skill India, along with partnerships with global technology companies, are enhancing India's focus on skilling and upskilling. This effort is shaping a future-ready workforce capable of tackling new-age jobs in fields such as artificial intelligence, quantum computing, and cybersecurity, among others.

Combined with India's collaborative innovation model, this workforce is a blueprint for global economic leadership. Unlike traditional growth models that relied heavily on industrialization, India's growth is powered by interconnected technologies, knowledge-sharing, and partnerships that drive efficiency and innovation.

India’s Vision for Inclusive Global Leadership

India is leading a new global growth paradigm, prioritizing resilience, inclusivity, and sustainability. This model is particularly relevant as the world grapples with geopolitical tensions, supply chain disruptions, and climate challenges. The Indian growth plan bridges the gap between developed and developing nations, offering a pathway to sustainable economic leadership. It shows the world that growth need not come at the expense of people or the planet.

As India continues its journey towards becoming a $10 trillion economy by 2035, the world will clearly look to India as a partner in driving global prosperity. This is India’s moment to lead by shaping a new idea that resonates with the aspirations of a new world order.

(Sr. Vice President - India, Middle East, and Africa business, Tech Mahindra; Views expressed are personal)

18. Himachal farmer Hariman Sharma selected for Padma Shri revolutionised apple cultivation

ET, 26 Jan. 2025

Himachal farmer Hariman Sharma selected for Padma Shri revolutionised apple cultivation

A progressive Himachali farmer, Hariman Sharma revolutionised apple cultivation by developing a variety that can be cultivated under warmer conditions in the lower hills. It was earlier believed that apples could only be grown in the mid and the higher hills under cold conditions. Sharma's innovation, however, busted that myth.

He developed the 'HRMN 99' variety that can blossom at altitudes as low as 1,800 feet and is resistant to scab, a familiar disease that plagues the fruit.

It is a unique innovation that has become popular not only in India but in countries such as Nepal, Bangladesh, Zambia and Germany, the farmer from Ghumarwin in Bilaspur district said.

So far, more than a lakh horticulturists have planted 14 lakh saplings, he added.

The National Innovation Foundation has adopted the variety for studies and further development, and planted 33,000 saplings in 29 states. Sharma has himself distributed more than 1.9 lakh saplings to 6,000 farmers.

Sharma's name was announced on Saturday for the Padma Shri award. He will be conferred with the award in the "Others (Agriculture)" category, acknowledging his dedication and innovation in transforming the lives of countless farmers while strengthening the agriculture economy.

He is the lone name from the state in this year's Padma awards list.

In addition to apples, Sharma cultivates mangoes, kiwis and pomegranates in his composite orchard, showcasing his versatility as a farmer.

19. Developing supply chain resilience by enabling the growth of domestic high-tech industries

ET Gov. 01 Feb. 2025

The government’s focus has been on growing the manufacturing sector in India, since the sector contributes significantly to both GDP and employment. Before the pandemic, the sector contributed around 16-17% to the GDP.

This figure is much lower than the average for other countries such as those in South-East Asia, where manufacturing contributes around 26-27% to the GDP. Therefore, the government had set a target to increase this share to 25% by 2025.

Unfortunately, this figure has not had the expected increase. This is because India’s manufacturing is predominantly composed of small-scale industries that have lower economic value addition.

To achieve greater percentage growth for manufacturing, there is an immediate need for new high-tech industries to emerge. While India only contributes around 3 percent to the global output for high-tech manufacturing, it is a major importer of many high-tech components across the value chain for final products.

This is particularly seen in the manufacturing of optical fibre, the backbone of our country’s Critical Information Infrastructure (CII). Given the pivotal role it plays for many modern applications, the government has focused on enabling policies to rapidly grow manufacturing capacity for the product. As of today, the industry manufactures 100 million fibre kilometres (FKM) that has made the industry export-oriented.

With one industry growing, the internal demand for certain key intermediate products have also grown parallely. One of these intermediate products known as glass preform is a high-tech product, that is currently largely imported to meet domestic requirements. Preform serves as the foundational material for drawing optical fibres.

It is therefore a critical part of the value chain that affects the supply-chain resilience of the optical fibre industry. As of today, preform manufacturing technology is only possessed by a few companies in a few countries.

It is observed that investments made into glass preform have been limited to two domestic manufacturers, primarily because the current duty structure makes it cheaper to import than to invest in building a new high-tech industry. The existing duty rate for the import of preform is only 10%. Moreover, importers can essentially avail nil duty through various concessions under end-use benefits and rules of origin under various FTA’s (Free Trade Agreements) such as the India-Japan CEPA (Comprehensive Economic Partnership Agreement).

As a result of favourable import policies, there is little to no incentive for Indian manufacturers to invest in infrastructure to develop the capacity required for glass performance. Hi-tech industries such as glass preform can potentially add crores in economic output and generate thousands of jobs in the short to medium term.

To promote new investment and safeguard our supply chains, we should increase duty on glass performance to at least 20%. In the short-haul, this would have a small impact on the cost of manufacturing for domestic optical fibre manufacturers. However, as more capacity is added for glass performance, the prices will rationalize. This is besides the fact that we would now have a new high-tech industry that would add significantly to economic value.

In addition to this, the industry also needs a BIS standard for glass performance. While manufacturers continue to invest in building capacity, it will add a layer of protection because those who adhere to these standards will no longer face unfair competition from low-priced, non-compliant imports.

Because of multiple reasons to support the growth of high-tech industries, the government has had a special focus on such industries. High-tech industries promote innovation by improving overall R&D within the country. Moreover, high-tech firms are associated with high value-added production and higher compensation to employees.

Most importantly, no modern large economy can have supply chain resilience without having domestic high-tech industries. Therefore, for taking forward the government’s focus on promoting high-tech industries, it is critical to adopt standards for those products, and to safeguard the green shoots of high-tech industries in India.

(The authors are part of Centre for Digital Economy Policy Research; Views expressed are personal)

20. Building a $80 billion creative economy:The education system must evolve to make students future ready

ET Gov. 14 Fev. 2025

The creative economy is more than an economic opportunity or a sector - it is the future of work, it is India’s chance to lead in global innovation, design, digital media, and entrepreneurship. It is projected to contribute $80 billion to India’s GDP by 2026. But will our students – the future workforce - be ready to participate, leave alone lead this transformation?

What is one challenge that is common to educators and employers alike? ‘Constructing creative approaches to problem-solving’. Given this micro perspective in the macro context of the emerging digital and creative economies, it is imperative for the education system to transition from rote learning to a competency-based curriculum, which can prepare individuals for real life and workplace complexities.

On the other hand, digital skills and information technology in the new world have also been recast. Information technology is no longer only coding, but AI-powered tools, Web 3.0, and blockchain, and most companies are trying to progress to AI, big data, and cloud computing. To be able to use emerging technologies, logic, process thinking, problem-solving, and creativity are pre-requisites.

A Nation of Rote Learners Cannot Lead a Creative Revolution

With the fifth anniversary of the National Education Policy (NEP) 2020 upon us and the Union Budget 2025-26 prioritizing 21st-century skills, is the roadmap looking mature? If creativity is the currency of the future, we are woefully underinvested.

The Union Budget’s emphasis on 21st-century skills is a step in the right direction, but it must translate into real classroom change. Employers no longer hire based on degrees alone, they seek critical thinkers, problem-solvers, and digital natives. We don’t need incremental improvements; we need an education revolution.

Given the consequences of mass participation in the creative economy - or the lack of it- Primus Partners conducted a situational self-assessment survey with students that became the basis and background for our recently published report titled Shaping the Future of Education for an $80 Billion Creative Economy.

The survey revolved around 21st-century skills, which form the core of the creative economy as we understand it today - problem-solving, critical thinking & creative solutions, brainstorming, teamwork, real-life application of learning, design thinking, observation, and research.

The survey shows the need for rethinking education to prepare students for a world driven by creativity, digital fluency, and problem-solving as a force multiplier for economic transformation - only 9% of students demonstrate high readiness in essential creative economy skills like design thinking, research, and problem-solving. The vast majority are stuck in a system that prioritizes memorization over mastery and standardization over innovation.

The bulk of students who participated in the survey show promise, but potential alone is not enough. Without an urgent, systemic shift in how we educate, we risk creating a generation of jobseekers in a world that needs job-creators. Would any company survive if only 9% of its workforce possessed the necessary skills? Then why are we comfortable with an education system that leaves most students unprepared for the future?

The Readiness Gap: A Nation’s Creative Potential at Risk

We celebrate India’s booming start-up culture, its expanding digital workforce, and its rapid ascent as a global media and design hub. But inside our classrooms, students are still being trained for a world that no longer exists:

1 in 5 students struggle with critical thinking, problem-solving, and research. That is not just an education gap, it is an innovation deficit.

30% of government school students and 13% of private school students lack the ability to apply their knowledge to real-world challenges. They can recite theories but struggle to translate them into action.

Private schools foster better hands-on learning, while government schools produce keen observers. But neither is enough to equip students for an economy that rewards creativity and innovation.

The Classroom-Economy Disconnect: A Crisis We Can No Longer Ignore.What must change:

1. From Rote Learning to Inquiry-Based Education: This should no longer be a standard for “best schools”. ALL classrooms must now bring in pedagogies where students don’t memorize answers to questions but drive their understanding by questioning. Schools must integrate case studies, live projects, and experiential learning models.

2. Design Thinking & Digital Literacy as Core Subjects: AI, blockchain, AR/VR, these are not future skills; they are today’s reality. Schools must embed these as core and discrete subjects, not electives.

3. Making Student Start-Ups a Norm, Not an Exception: If India wants to lead the creative economy, entrepreneurship must be taught early. Schools should foster start-up incubation labs, industry mentorship, and real-world problem-solving.

Reimagining Education for a Creative India

We cannot afford to let 91% of our students remain unprepared for the very economy that will define India’s future. The creative revolution is already here. The only question is: Will we equip our youth to lead it, or will we leave them behind?

(The author is Founder & Partner in Primus Partners; Views expressed are personal)

India and the World

21. Vasudhaiva Kutumbakam implies 'One World, One Health': Avenues for growth in health-tech sector

ET Gov. 16 Jan. 2025

With its eyes set on the future, India is poised to lead the charge in health-tech, offering solutions that promise better health outcomes and a brighter, more equitable future for millions around the world.

2025 is set to be a defining year for India’s economy, as recent forecasts have projected a deceleration in growth for this ongoing fiscal year, due in large part to weaker investments, reduced global consumption, and a decrease in corporate revenues.

For a country whose economic projections have always been defined by rapid growth and ambition, this downturn undoubtedly requires swift government action, and Prime Minister Narendra Modi has already made moves to lift sentiment and economic performance.

However, government action is only one piece of the puzzle. For decades now, India’s unparalleled economic growth has been driven by the emergence of globally competitive domestic industries, from manufacturing and technology to transportation and energy.

As these industries, and the Indian companies leading them, affirmed key positions in the international economic system, the country benefited from an expanded revenue base and increasing foreign investments. Therefore, if India is to outperform expectations and rekindle its economic fire, business leaders and entrepreneurs from every sector must continue to innovate and find new avenues for wide-scale expansion.

One such sector showing great potential for expansion is health technologies. In recent years, India's health-tech industry has developed into a hub of innovation and a cornerstone of the nation's economic and global ambitions.

In 2022, the health-tech market in India was valued at approximately 10.6 billion U.S. dollars, and it is projected to double by 2025, reaching around 21.3 billion U.S. dollars. This sector's growth is more than just an impressive statistic; it signifies a profound shift in how India is perceived on the world stage—no longer just a provider of services but a creator of cutting-edge industries and technologies.

As global healthcare systems grapple with increasing demands and resource constraints, India's burgeoning health-tech sector is uniquely positioned to offer scalable, cost-effective solutions to business and communities around the world. In the context of India’s long-term growth, this can play a critical role in supporting and enhancing economic growth, job creation, and foreign investment.

Moreover, the sector’s emergence also reflects a deeper narrative about India's capacity to leverage technology for social good, a narrative that resonates globally and enhances India's soft power.

At the heart of this transformation are pioneering companies like Periwinkle. This Indian enterprise has revolutionised cervical cancer screening with its patented Smart Scope® CX device. Unlike traditional methods that are often inaccessible to women in rural and underserved areas, Periwinkle's technology democratises healthcare by offering a portable, cost-effective solution that uses advanced imaging and AI-powered analytics to provide real-time results.

This innovation is not just a technological marvel; it is a lifeline for thousands of women who previously had little to no access to such critical health services.

Already, the achievements of companies like Periwinkle are being recognised on the international stage. This week, Co-Founders Veena Moktali and Koustubh Naik were in Abu Dhabi, after being selected as a finalist for the Zayed Sustainability Prize, the UAE’s pioneering award for sustainable solutions.

With the aim of driving progress and sustainable development worldwide, the Prize awards 1 million USD to five of the world’s most innovative organisations, and Periwinkle’s selection as a finalist reflects their incredible work in the field of health-tech, and India’s emergence as a global leader in this sector.

Another exemplar of India's health-tech prowess is Practo, a company that has seamlessly integrated digital solutions into everyday healthcare. Practo's platform connects patients with healthcare providers, offering services such as appointment booking, teleconsultations, and access to digital health records.

This has been particularly transformative during the COVID-19 pandemic, demonstrating the sector's agility and its capacity to meet urgent healthcare needs. Practo's success highlights the adaptability and resilience of Indian health-tech companies, which are increasingly becoming indispensable to both national and global healthcare systems.

The rapid advancement of India's health-tech sector is not without its challenges. Regulatory hurdles, data privacy concerns, and the need for a robust healthcare infrastructure pose significant obstacles. However, these challenges also present opportunities for collaboration between start-ups, government agencies, and traditional healthcare providers.

Such partnerships can create a more integrated and efficient healthcare delivery model, one that is capable of meeting the diverse needs of India's population.

Moreover, continued investment in research and development will be crucial. India must not only sustain its current momentum but also push the boundaries of innovation to remain competitive on the global stage. This requires a concerted effort to nurture talent, foster an entrepreneurial ecosystem, and ensure that the benefits of health-tech innovations are equitably distributed across all segments of society.

As this sector continues to evolve, it will play a pivotal role in strengthening India’s economic ambitions. With companies like Periwinkle and Practo creating new solutions and strategies for expanding healthcare access on a global scale, India’s position in the international healthcare industry is on the rise, offering new opportunities for growth and investment that can help overcome India’s slowdown, However, the health-tech industry is not merely an economic asset; it is a testament to the country's capacity for innovation and its commitment to improving lives.

Healthcare is also one sector which has accrued for India an exceptional heft on the global stage. PM Modi’s focus on “Vasudhaiv Kutumbakam” – World is one family; the dictum of her G2-0 presidency One World, One Family, One Future; and his emphasis on One World--One Health enabled the ‘Vaccine Maitri’ during the Covid pandemic.

Not only a favourite for health tourism with its traditional ayurvedic and modern medicine excellence but India has also become a vaccine hub and pharmacy of the world and now the health-tech could provide that avenue for further enhancing its heft in this truly vital sector for the broader global good.

(The author is former Indian Ambassador to Jordan, Libya and Malta and President of Miiccia Chamber of Commerce & Industry as well as a Distinguished Fellow at Vivekananda International Foundation; Views expressed are personal)

22. India Known as 1st Responder to Global South During Natural Disasters: Goyal

ET, 16 Jan. 2025

IANS New Delhi, Jan 15 (IANS) India is known as the first responder to the Global South for its humanitarian initiatives in times of natural disasters, Union Minister of Commerce and Industry, Piyush Goyal, said on Wednesday.

India is known as the first responder to the Global South for its humanitarian initiatives in times of natural disasters, commerce and industry minister Piyush Goyal said Wednesday.

India is known to provide disaster management to neighbouring countries in flood prevention and flood control, the minister said at the World Congress on Disaster Management while presenting Disaster Risk Reduction Awards.

“India is the first responder for Global South in times of need,” he said, adding that during the Covid-19 pandemic, the country provided free vaccines to more than 100 countries through the 'Vaccine Maitri' humanitarian initiative.

Goyal added that disaster relief insurance claims is an area where work needs to be done in creating awareness and providing faster disposal of the claims in a seamless manner and there should not be a need to approach the courts to get relief.

Factual, correct assessment and analysis will help the authorities in settling disaster relief claims faster and giving relief to the deserving, he said.

23. US Consulate Bengaluru: US opens its 5th Consulate in Bengaluru

ET Gov. 20 Jan. 2025

BENGALURU: The US and Indian governments today dedicated a new US consulate site in Bengaluru, an official statement by the US Embassy said.

Together, with External Affairs Minister S Jaishankar, US Ambassador to India, Eric Garcetti dedicated the site of the US consulate, which is intended to become the fifth US consulate in India.

The consulate will expand on the more than thirty-year presence of the US government in Bengaluru by increasing our diplomatic engagement on economic and political issues, conducting public diplomacy and people-to-people engagements, and augmenting existing US and Foreign Commercial Service capabilities. Initially, consular services will continue to be performed at the US Consulate in Chennai and other US diplomatic posts in India, the statement added.

Garcetti and Jaishankar, joined by Karnataka Deputy Chief Minister DK Shivakumar, announced their efforts to fulfill a commitment made by US President Joe Biden and Prime Minister Narendra Modi during the Prime Minister's State Visit to Washington, DC, in June 2023.

The initiative to expand the US presence in Bengaluru will broaden and deepen the long-standing ties between the United States and the state of Karnataka and build upon long-standing diplomatic engagement and strategic partnership in Karnataka, as per the statement.

The state is home to nearly 700 US companies and tens of thousands of US citizens who live, visit, study, and work in Karnataka - creating jobs in both the United States and India. It is also the center of rapidly expanding collaboration in space, highlighted by the planned launches this year of the jointly developed NASA-ISRO Synthetic Aperture Radar satellite and of a US mission to bring NASA-trained Indian astronauts to the International Space Station.

Speaking at the dedication ceremony, Ambassador Garcetti said, "Our relationship truly extends from the seabed to the stars and nowhere is that truer than here in Bengaluru. The innovation and entrepreneurship of this state - from semiconductors to space - is matched only by Silicon Valley in my home state of California. I'm so proud to dedicate our new consulate site and announce the expansion of the collaboration between the American people and the citizens of Karnataka."

Expressing optimism about the future of the bilateral relationship, Minister for External Affairs, Jaishankar stated, "I do believe today it is within our grasp, within the realm of possibility that we realize more fully the potential of India -US relationship. I see a great future for India and the United States, and I think, in that future, obviously Bengaluru will also have a salient part," as per the statement.

While speaking at the event, the statement said, Shivakumar shared his perspective saying, "This is not just an opening of the diplomatic mission, but a powerful symbol of the ties between the United States and India, particularly with Karnataka, a state that has been long at the heart of India's growth and innovation."

Bengaluru is the sister city of San Francisco, California, and Cleveland, Ohio, and a key link with US defence, technology, and aerospace companies.

The US government first established an office in Bengaluru in 1993 with the opening of its Commercial Service post in the city.

24. AI can add $4.4 trillion annually to global economy but digital divide must be addressed: WEF

Davos, Jan. 23, 2025,Gilberto Tomazoni, JBS

DAVOS: While artificial intelligence (AI) could add $2.6 trillion to $4.4 trillion to the global economy annually, there is also need to pay attention to the careers, lives and communities it will disrupt - including those who have already been left out of the global digital economy, according to a presentation at the World Economic Forum's (WEF) annual meeting in Davos on Wednesday.

"At a minimum, we must eliminate the existing digital divide. Despite the rapid proliferation of the internet across the globe, over 2.5 billion people still lack access to it. Nearly a third of the world's population cannot take advantage of online services that are essential in today's digital world such as finance and banking, education and healthcare," Robert F. Smith founder CEO of Vista Equity Partners, a prominent US private equity firm, stated in his presentation.

Divides exist within developed countries, too. In the US, nearly 24 million people still lack access to high-speed internet. This prevents millions of Americans from accessing the services only broadband can provide and from fully participating in the economy, the report stated.

Instead of becoming a new economic wedge, AI could become a prolific source of generational wealth. So long as we take appropriate steps to prevent these tools from mimicking and reinforcing racial and gender biases, the innovation and economic growth AI would spur has the potential to generate prosperity for all.

With AI's current trajectory, there will be three distinct waves of opportunity through which value will be captured. We are already seeing the first wave of value creation benefiting hardware vendors. The second wave will go to super scalers like Microsoft, Google, Oracle and other large companies that have the ability to broadly offer connectivity to compute. The third wave will benefit enterprise software vendors who provide AI and GenAI solution sets on top of their existing products, according to Smith.

These are the three distinct verticals on which we must focus efforts to enable equitable development and deployment of GenAI.

The good news is, unlike the digital revolution, we have the luxury of foresight. As AI evolves and established companies and new start-ups scale products, develop features and capture value at each stage, we must commit ourselves to ensuring everyone in every nation has access to the internet, AI education and tools, and processing power.

"As we stand at this crossroads, we must think expansively and act decisively to ensure we unlock GenAI's full potential," Smith added.

25. Welspun Plans Home Run After Going Around the World

ET, 10 Feb. 2025

Welspun World is shifting its strategic focus towards the domestic market after decades of being heavily export-driven, as the conglomerate prepares to capitalise on India’s booming economy with ambitious investment plans and expansion strategies, chairman BK Goenka told ET in an interview.

Historically, Welspun World has maintained a strong international presence, with textiles alone accounting for 90% of its exports. As a group, nearly 60% of its revenue has been generated from outside India. However, in the backdrop of India’s rapid economic growth and increasing demand, the company is now prioritising domestic expansion.

“We were always looking outside India and were very export-oriented,” said Goenka. “But about two years ago, we re-evaluated our approach and decided to focus inward. With India’s economy on track to grow to $10 trillion in the next 5 years, we want to be part of this journey.”

Welspun aims to triple its revenue from `35,000 crore to `1 lakh crore within the next 3-5 years. This ambitious target will be fuelled by multiplying growth across all segments, including textiles, infrastructure and warehousing.

To fund this expansion, the company plans to leverage its cash flow of `4,000 crore annually and strong balance sheet, with an Ebitda-to-debt ratio of less than 0.5. Additionally, Welspun is exploring capital infusion through private equity, particularly in its warehousing division, and is open to strategic partnerships.

Despite the domestic shift, Welspun World remains committed to global markets, with the US and Middle East continuing to be key regions. However, India’s market growth is expected to outpace international expansion.

“India is a growth story, whereas other markets are largely replacement stories with minimal expansion,” Goenka said.

Welspun World has earmarked nearly `25,000 crore for investment over the next few years. This includes `1,000-1,200 crore for textile expansion in the next 18 months, a significant boost in warehousing investments and `12,000-15,000 crore allocated for infrastructure projects over the next 3-4 years. Additionally, `2,500 crore is being invested in Sintex, a brand engaged in the business of water storage solutions and PVC pipes, which Welspun acquired recently.

The group’s strategy also includes strengthening its presence in home textiles, a segment where it already holds a dominant position in the US market.

“Every fourth towel sold in the US is ours. We want to replicate that success in India, targeting a 25% market share in the domestic textile market,” Goenka said.

The company aims to establish itself as a household brand, leveraging its diverse product portfolio, which includes textiles, water tanks, pipes and infrastructure solutions. It is also looking to transform its business model from business-to-business to business-to-consumer, creating more value for shareholders and tapping into India’s rising consumer demand.

The group is placing a strong emphasis on sustainability and technological innovation. Major international retailers like IKEA will stop accepting products made using coal-based power by 2027-2028, pushing manufacturers to adopt greener processes. “Initially the talks were about quality and about the pricing to be competitive. But I think now the real stories are about sustainability, real stories are about how you are making your product. Every action is being monitored,” Goenka said.

Welspun is proactively addressing this shift, with plans to generate 80% of its power from green sources within two years. Additionally, it is already utilising 20% recycled fibre in its products and aims to increase this to 35%.

On the technology front, Welspun is heavily investing in artificial intelligence and machine learning to enhance efficiency across its operations. Its Global Capability Centre in Ahmedabad, with 600 employees, is driving the group’s digital transformation.

BK GOENKA Chairman, Welspun World.

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