AAPI: Newsletter, June 2025

DELHI, June 2025

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Empowering India: Dr. Ashok Kumar Mittal on Education and Counterterrorism Strategy
22. Empowering Multilingual Classrooms: A New Era of Education in India
23. Tata Electronics sends hundreds to Taiwan for training ahead of India's first AI-enabled fab: Report
24. US Trade Pact Set for Early Finish: Piyush Goyal
25. Global Shocks won’t Alter Our Plans for India: Masahiro Kihara

* * *

DELHI, June 2025

NEWSLETTER, June 2025

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1. At Economic Crossroads: India’s Poverty Decline and the Road to High-Income Status

ET Gov. 10 June 2025

Alleviating poverty transcends welfare; it is essential for establishing a robust middle class that can sustain production, consumption, and innovation in a globalised economy and help the nation secure a place in the coveted list of developed nations.

The World Bank recently raised the International Poverty Line threshold from $2.15/day (2017 PPP) to $3.00/day (2021 PPP). However, the silver lining on the wall was that India proved to emerge as a statistical outlier and demonstrated a massive reduction in the number of people below the poverty line.

The remarkable achievement has been attributed not only to the well-targeted welfare programs, improved delivery mechanisms of the innumerable government schemes and the nation being one of the fastest growing emerging economies but also the utilization of more refined data and updated survey methods.

Although the new poverty line was expected to raise the global extreme poverty count by 226 million, the actual increase was only 125 million—thanks largely to India, whose revised data alone accounted for 125 million decrease, emerging as a major outlier in a positive direction.

The adoption of the Modified Mixed Recall Period (MMRP) method in the Household Consumption Expenditure Survey (HCES)—which uses shorter recall periods for frequently purchased items—has led to more accurate estimates of actual consumption. Combined with the positive impact of sustained policy reforms, this has revealed a sharp decline in India’s poverty rate, from 27.1% in 2011–12 to just 5.3% in 2022–23.

Rather, the HCES is also reflective of the fact that average monthly per capita expenditure in current prices was Rs. 4122/- in rural areas and Rs. 6996/- in urban areas in 2023-24 as against Rs. 3773/- in rural areas and Rs. 6459/- in urban areas in 2022-23. On including the value of items received through social welfare programs, the number increases to Rs. 4247 in rural areas and Rs. 7078/- in urban areas.

Thus, it can be safely stated that Government welfare programs such as providing subsidized grains to 80 crore population under the National Food Security Act, implementing direct benefit transfers thereby ensuring that the leakages are plugged and the money reaches the poor directly, midday meal schemes resulting in improved child health, MGNREGA and Livelihood Missions offering timely support to self-help groups, Pradhan Mantri Awas Yojana, Swachh Bharat Mission improving health and sanitation and quality of life for the less privileged section of society, access to Ayushman Bharat offering free healthcare facilities etc. are all steps in the right direction.

The bright spot being that not only has the nation seen a reduction in poverty numbers but also consumption inequality both in rural and urban areas has been on a decline. The Gini coefficient for consumption expenditure decreased in both rural and urban areas between 2022–23 and 2023–24. In rural areas, it fell from 0.266 to 0.237, while in urban areas, it declined from 0.314 to 0.284, indicating a reduction in consumption inequality across both segments.

Rather, when ranked by Monthly Per Capita Expenditure (MPCE), the largest increase in average MPCE between 2022–23 and 2023–24 was observed among the bottom 5 to 10 percent of the population in both rural and urban India. Also, in line with the HCES 2022–23 trend, non-food items continued to dominate household average monthly expenditure in 2023–24, accounting for approximately 53% in rural areas and 60% in urban areas of the MPCE.

As India aspires to become a Viksit Bharat by 2047 and targets a $30 trillion economy, it is crucial to accelerate progress on per capita GDP—a key marker of individual prosperity. According to the World Economic Outlook, India’s projected per capita GDP for 2025 stands at just $2,878, underscoring the scale of the challenge ahead. In comparison, the United States stands at $89,110, the United Kingdom at $54,950, and even China—India’s closest economic peer—at $13,690. To truly realize the vision of a developed nation, India must not only grow in aggregate but ensure that growth translates into meaningful income gains for every citizen.

Simultaneously, it also needs to be ensured that the nation does not get caught in the Middle Income Trap. The Middle Income Trap refers to a situation in which countries remain at middle-income levels and are unable to transition into high-income economies. Strategies that facilitated initial expansion, such as inexpensive labour and capital accumulation, become ineffective, and the nation fails to transition to growth fuelled by innovation, skills, and productivity enhancements. To evade the middle-income trap, it is imperative to preserve productivity growth, ensure governance adaptability and prioritise the reduction of inequality.

Essential strategies for poverty alleviation that may also prevent the middle-income trap encompass: investing in human capital and fostering skill-intensive industries; broadening social protection to stabilise and augment consumption; promoting financial inclusion and enhancing access to capital for MSMEs and women; increasing female labour force participation; mitigating structural inequalities through improved market access; and reinforcing governance to remain responsive and adaptive to changing developmental challenges.

(The author is a Professor in Economics and Area Chair at the Birla Institute of Management Technology; Views expressed are personal)

2. ICRISAT, IFFCO, BBSSL Join Hands to Set Up Advanced Seed Research Centre in Gujarat

RuralVoice, 9 June 2025

ICRISAT, IFFCO, and BBSSL Sign Tripartite Agreement to Develop the Beej Anusandhan Kendra for Advancing Seed Innovation and Farmer Empowerment

In a significant move to advance seed innovation and promote sustainable agriculture, three leading institutions — the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), Indian Farmers Fertiliser Cooperative Limited (IFFCO), and Bhartiya Beej Sahkari Samiti Limited (BBSSL) — have signed a tripartite agreement to establish the Beej Anusandhan Kendra, a state-of-the-art seed research and development centre in Gujarat.

The agreement designates ICRISAT as the Knowledge Partner responsible for preparing the Detailed Project Report (DPR) for the centre. The collaboration brings together ICRISAT’s global scientific expertise, IFFCO’s cooperative leadership, and BBSSL’s commitment to seed quality, aiming to strengthen India’s agricultural research and development landscape.

The Beej Anusandhan Kendra, to be constructed by IFFCO and operated by BBSSL, will integrate advanced research infrastructure to develop high-quality seeds tailored to India’s diverse agro-climatic zones. It is expected to play a vital role in advancing sustainable agriculture and enhancing productivity for millions of farmers.

"The Beej Anusandhan Kendra represents a convergence of science, cooperation, and grassroots action. As a knowledge partner, ICRISAT is committed to delivering a world-class blueprint for seed innovation and farmer empowerment," said Dr. Himanshu Pathak, Director General, ICRISAT.

This agreement builds on a recent Memorandum of Understanding signed between ICRISAT and IFFCO during ICRISAT’s Foundation Day, reinforcing their shared commitment to collaborative innovation in Indian agriculture.

Yogendra Kumar, Chairman, BBSSL and Director (Marketing), IFFCO, emphasised, "We are proud to witness this partnership that lays the foundation for a facility built on scientific rigour and cooperative strength. IFFCO remains committed to sustainable agricultural progress."

Echoing this vision, Chetan Joshi, Managing Director, BBSSL, stated, "The Beej Anusandhan Kendra is a landmark initiative to support Indian agriculture with high-quality seeds and cutting-edge research infrastructure. We are confident this initiative will benefit farmers across the country."

The Beej Anusandhan Kendra is poised to become a cornerstone in India’s mission to enhance agricultural resilience, productivity, and self-reliance through cooperative and research-driven solutions.

3. Rajasthan’s Rural Revolution: Empowering Villages and Women

ET Gov. 24 May, 2025

As India advances on the path of inclusive growth, rural development continues to be a cornerstone of equitable progress. Leading this mission in Rajasthan is Shreya Guha, Additional Chief Secretary, Rural Development Department, whose strategic leadership is shaping a forward-looking and impactful rural agenda.

In an exclusive interaction with ETGovernment's Mahima Jain, Guha delves into a range of transformative initiatives—from the ambitious Deen Dayal Upadhyay Garibi Mukt Gaon Yojana to the empowering “Lakhpati Didi” campaign—while highlighting how technology, transparency, and community-driven approaches are redefining rural governance across the state.

Edited Excerpts:

What are the key priorities currently driving the Rural Development Department in Rajasthan?

Our department acts as the principal link between the Government of Rajasthan and the Ministry of Rural Development at the Centre, ensuring seamless execution of centrally sponsored schemes. Beyond this, we oversee a wide range of state-specific initiatives, coordinate the MP and MLA Local Area Development Funds, and focus intensively on poverty alleviation and infrastructure enhancement in rural areas.

This year is particularly noteworthy due to the introduction of several new schemes. Among them, the flagship Deen Dayal Upadhyay Garibi Mukt Gaon Yojana stands out. Its goal is ambitious: to eliminate all below poverty line (BPL) families from Rajasthan’s villages through strategic interventions and sustainable livelihood generation.

We have also launched the Shyama Prasad Mukherji District Upliftment Yojana, a gap-filling scheme that empowers district collectors with untied funds to address pressing local needs that fall outside the purview of existing guidelines. Another targeted initiative is the Thar Vikas Yojana, which focuses on infrastructure and service delivery in remote international border regions of Rajasthan.

Women’s empowerment appears to be a central focus in your initiatives. How is Rajasthan driving change in this area?

One of our most transformative programmes is the National Rural Livelihood Mission (NRLM), known in Rajasthan as Rajeevika. It is centered on the socio-economic empowerment of rural women through the formation of self-help groups (SHGs) and the promotion of micro-enterprises.

A key highlight is the Lakhpati Didi campaign, which aims to help women earn at least ₹1 lakh per year. Once this benchmark is reached, these women are supported in expanding their enterprises through access to financial services and market linkages.

We are also training SHG members in emerging sectors such as drone operation (under the Namo Drone Didi initiative) and solar panel maintenance. Rajasthan’s vast solar potential makes the Solar Didi Scheme especially impactful, equipping women with the skills to manage renewable energy assets and opening new livelihood avenues.

Housing remains a fundamental concern in rural India. How has the state fared under the Pradhan Mantri Awas Yojana (PMAY)?

Under PMAY, we were tasked with constructing 4.8 lakh homes in 2023–24. I'm pleased to report that we achieved full sanctioning within just six months—from September to March—highlighting the pressing housing needs in our rural areas.

We have since secured additional sanctions for another 2.6 lakh homes and are on track to complete them in the coming months. Each PMAY house includes a toilet, thereby reinforcing the objectives of the Swachh Bharat Abhiyan.

While sanitation is overseen by the Panchayati Raj Department, our contribution through PMAY is significant. Every home includes a fully funded toilet, directly enhancing sanitation and hygiene in rural households. Clean living conditions are integral to our broader development goals.

MGNREGA has long been a lifeline for rural employment. How has Rajasthan utilized this scheme in the past year?

MGNREGA continues to serve as a vital social safety net, offering wage employment to millions while also creating lasting rural assets. For 2024–25, the Centre initially allocated Rajasthan 2700 lakh man-days of employment. However, due to high demand—especially during the lean summer months—we surpassed this ceiling and generated over 3000 lakh man-days.

This clearly reflects the scheme’s importance in regions experiencing seasonal livelihood distress. Given this demand and our robust delivery mechanisms, we’ve now set a target of 3400 lakh man-days for the current fiscal, and we are optimistic about achieving—and even exceeding—it.

Ensuring transparency and accountability is critical for large-scale rural schemes. What mechanisms has Rajasthan put in place?

Transparency is fundamental to effective governance. We’ve institutionalized a Social Audit Vertical that engages Gram Panchayats in monitoring development projects and financial disbursements. Community-level meetings are held to review sanctioned works, and any discrepancies are immediately flagged.

In addition, we’ve introduced a comprehensive E-Work Portal. This digital platform streamlines the entire project lifecycle—from proposal to payment—ensuring minimal paperwork, reduced delays, and enhanced accountability.

Public representatives such as MPs and MLAs can now upload their recommendations directly onto the portal, ensuring transparency and eliminating manual submissions. Beneficiaries receive funds via Direct Benefit Transfer (DBT), and vendors and contractors are paid digitally through real-time systems—thereby eliminating intermediaries and reducing fund diversion.

Having worked extensively in field roles, I can say with confidence that this digital-first governance model has revolutionized our efficiency, reach, and impact.

Looking back at your three decades of service, are there any milestones you consider particularly transformative?

Each assignment brought unique challenges and learnings. At the Cooperative Department, we led Rajasthan to the top of the Sahkar Se Samriddhi campaign rankings. We achieved 100% computerization of Primary Agriculture Cooperative Societies (PACS), a move that greatly enhanced transparency and service delivery.

In my tenure with the Forest and Environment Departments, we established the Directorate of Environment and Climate Change—making Rajasthan one of the few states with such a specialized body. We also formulated a State Action Plan on Climate Change to align our environmental strategy with national and global goals.

What message would you like to share with stakeholders in rural development across the country?

The future of India lies in the transformation of its villages. Rural development today is not just about infrastructure—it’s about integrating health, education, employment, and empowerment into a cohesive strategy.

Rajasthan’s experience shows that a multi-dimensional, transparent, and participatory approach—especially one that foregrounds women and leverages digital tools—can deliver meaningful and sustainable change. We hope our model inspires similar innovations across the nation.

4. Digital Education: From Learning to Livelihood - Bridging the Education-to-Employment Divide

ET Gov. 21 May, 2025

As leaders, policy makers, financers, and implements, our task isn't simply to reform education but to fundamentally redesign it.

In the ancient centers of learning, be it Nalanda's monastic universities, Europe's guild schools, or the Aztec calmecac, education was seen as a force to build not just knowledge, but character, identity, and social and economic value. Students learned directly from practitioners, with knowledge transferred through apprenticeship as much as instruction. The boundaries between education and work were intentionally permeable.

However, the industrial age introduced artificial separations between education and employment, youth and adulthood, academic and practical knowledge. Access to education has improved globally, yet the promise of education remains unfulfilled for many. Even when accessible, education often lacks relevance, disconnected from the opportunities it should unlock in industry. We've expanded schooling but not holistic development; achieved certifications but not confidence. Education today feels out of sync with the working world.

The Readiness Crisis: Boundaries That Bind

Jobs are changing fast with automation, AI, and the green economy. Yet our schools aren’t keeping up. The World Economic Forum's Future of Jobs Report 2025 indicates that nearly 39% of workers' core skills will be outdated by 2030. Yet, our systems treat learning as a one-time event rather than a lifelong process. Simultaneously, employers globally report increasing difficulty in finding work-ready talent – business surveys suggest three quarters of employers globally report difficulty in finding the right skilled talent they need. This disconnect is especially acute for individuals affected by poor nutrition, unsafe living conditions, or limited access to digital tools

The Future of Jobs Report 2025 | World Economic Forum

The Core Challenges

Timing: Learning shouldn’t end at school. Research from Harvard Business Review emphasizes that successful leadership now demands continuous, adaptive learning – not a one-off academic milestone. Yet, we've confined structured learning primarily to youth, creating a false narrative that education is something we "complete" before entering the workforce.

Technology: Schools often lack digital infrastructure, and many teachers have no formal training in digital skills. The OECD's Digital Education Outlook 2023 highlights that demand for tech, data, and digital communication skills is set to rise sharply by 2030, yet education systems remain misaligned, leaving graduates ill-equipped for the future workforce.

Supply not meeting demand: Education systems and employers often operate in silos. Curricula are often outdates and students don’t get real world exposure. Deloitte’s 2023 report finds that while 84% of leaders see the need to rethink learning, only 10% feel ready to make that change.

The solutions:

The OECD Learning Framework

To transform these challenges into opportunities, we must commit to strategic shifts:

Make learning a lifelong process: Introduce modular credentialing and age-appropriate transitions that blend core academics with future skills: problem-solving, adaptability, and socio-emotional intelligence. Policies should enable state boards and exam authorities to integrate interdisciplinary learning earlier, supported by performance incentives for holistic development.

Connect Education to Real-Life Experience: Encourage policy mandates for every school to partner with local employers, artisans, or service sectors to create contextual, hands-on exposure. These partnerships must be embedded through curriculum-linked projects, career awareness modules, and structured internships starting in secondary school.

Use technology to boost and improve access: Develop open-access national platforms with AI-powered learning pathways that personalize education for every learner regardless of background. These can be built on public curriculum standards and integrated into teacher training. Investments must flow into digital infrastructure for schools and monitoring systems that track learner engagement, not just access.

Integrate Education with Holistic Wellbeing: Education policy must align with gender, health, and social welfare agendas so we focus on the whole child. This includes school-based health screening, menstrual health programs, counselling services, and safe transport. Data systems should link education metrics with broader human development indicators to ensure coherence.

Data, Financing, and Partnerships Matter

Education systems must shift from reactive data use to predictive, with forward looking analytics and clearer staging posts through a child’s development. World Bank research demonstrates that early warning systems incorporating behavioural, academic, and socioeconomic data can predict dropout and employment challenges with 85% accuracy. These systems allow for targeted, timely interventions before students disengage.

Funding also needs to work smarter. Innovative financial models like the International Finance Facility for Education can tie funding to measurable learning outcomes, ensuring that investments in education directly correlate with real-world success. By leveraging public funds to mobilize private capital, such facilities can generate seven times the investment compared to traditional aid models and allow a much longer investment cycle given the pipeline real change in education needs.

Operationalized in September 2024, this smart aid mechanism has been recognized by the G20 as a ‘ground-breaking’ innovation in development financing. IFFEd is based on effective collaboration —governments provide guarantees, foundations contribute grants, and the projects it supports will prepare young people for real jobs in the real world based on industry need.

Furthermore, longer term public-private partnerships can fund the creation of new curriculum designs that integrate technology, creativity, and critical thinking—skills highly demanded by future employers. These approaches will enable countries to scale their education systems while ensuring alignment with future workforce demands.

Global Bright Spots: What is possible?

Promising models are emerging worldwide. Kenya's competency-based curriculum embeds career pathways and civic values into national policy. Colombia's work-integrated education initiative shows that practical exposure reduces dropouts and increases post-school employment. In India, the National Skill Development Program provide training and certification in various vocational courses to youth. A distinctive example of public-private-civil society collaboration is Samarpann, a grassroots organization working in government schools to reduce dropout rates by channelling Corporate Social Responsibility (CSR) capital, ensuring children don’t drop out of school in under resourced settings.

These examples demonstrate that systemic change is feasible when design, delivery, and accountability align.

A new Compact for “Learning and Earning”

As leaders, policy makers, financers, and implements, our task isn't simply to reform education but to fundamentally redesign it. The economic stakes are immense—the World Bank estimates that education-employment misalignment costs economies up to 2% of GDP annually through unemployment, underemployment, and productivity gaps.

This compact must align:

Governance: Coordination across ministries of education, labor, health, and finance.

Learning design: Engaging, problem solving, skills, mental health and social impact

Delivery: Strong, accountable school-industry-community partnerships.

Finance: Incentives that reward innovation, equity, and employment-linked outcomes.

Voice: Youth participation in policy design, not just as beneficiaries but as co-creators.

Only then can we re-anchor education in what it was always meant to be: preparation for life, livelihood, and leadership.

What we learn must help us earn. But more than that, it must help us thrive—economically, socially, and purposefully. Let us have the courage to build systems that deliver on that promise.

5. India's Social Protection Coverage Soars to 64.3%: ILO Recognizes Historic Milestone

ET Gov. 12 June, 2025

NEW DELHI: In a landmark recognition of India’s welfare-driven governance, the International Labour Organization (ILO) has acknowledged a dramatic expansion in the country’s social protection coverage - from 19% in 2015 to 64.3% in 2025. This 45-percentage point surge represents the fastest expansion in social protection coverage worldwide, placing India second globally in terms of the number of citizens covered.

The achievement was announced during Union Labour and Employment Minister Dr Mansukh Mandaviya’s bilateral meeting with ILO Director-General Gilbert F. Houngbo on the sidelines of the ongoing 113th International Labour Conference in Geneva. The ILO officially published India’s updated data on its ILOSTAT dashboard, affirming that over 94 crore Indians are now covered under at least one legislatively-backed, cash-based social security scheme.

Calling the development a "testament to the visionary leadership of Prime Minister Narendra Modi," Dr Mandaviya credited the expansion to the government’s “Antyodaya” approach—empowering the most vulnerable and ensuring no one is left behind.

Phase I Complete, More Coverage to Come

The current figure reflects only Phase I of a national-level Social Protection Data Pooling Exercise, undertaken by the Government in collaboration with the ILO. This initial phase focused on central sector and women-centric schemes across eight states. Officials anticipate that once Phase II and subsequent verifications are completed, the number of covered individuals may exceed 100 crore.

India also becomes the first country globally to update its 2025 social protection data in the ILOSTAT database—highlighting its leadership in digital governance and commitment to transparency in welfare systems.

Global and Strategic Implications

ILO Director-General Houngbo lauded India’s efforts, particularly its focused welfare policies for the poor and the working class. The international recognition is expected to strengthen India’s case in finalising Social Security Agreements (SSAs) with developed countries, ensuring portability of benefits for Indian workers abroad and adding credibility in global trade and labour mobility negotiations.

A Global Benchmark

According to the ILO's criteria, schemes considered for inclusion must be legislatively grounded, cash-based, and supported by verified time series data spanning the last three years. India’s unprecedented performance in meeting these criteria reinforces its position as a global leader in inclusive social welfare expansion.

Dr Mandaviya is currently leading the Indian delegation at the International Labour Conference in Geneva, scheduled from June 10 to 12, where these milestones are being formally presented.

- Agriculture, Fishing and Rural Development

6. NCOL Strives to Provide Market for Farmers' Organic Products, Creating Big Opportunities

Rural Voice, 21 May 2025

Established in 2023 as one of the three national cooperative societies, NCOL's membership now includes 7,000 cooperative societies, connecting over one crore farmers.

The National Cooperative Organics Limited (NCOL) is working with a dual objective: to promote organic farming among Indian farmers and to ensure a market for their organic produce. Established in 2023 as one of the three new national-level cooperative bodies, NCOL has already brought together around 7,000 cooperative societies, representing over 10 million farmers.

NCOL offers farmers premium prices for their organic produce and aims to create a robust market by providing consumers with certified organic products at reasonable rates. The organization envisions a system where authentic organic products are sold at just 10–15% more than conventional food products, making them accessible while opening up new avenues for organic farmers.

Speaking to Rural Voice, NCOL’s Managing Director, Vipul Mittal shared details of the initiative. He emphasized that to ensure product quality, every NCOL item carries a QR code. By scanning it, consumers can access the batch’s pesticide residue test report. After scanning the QR code and entering the batch number and other details, users can view the complete report. This step aims to build trust in the authenticity and quality of NCOL products.

Currently, under the ‘Bharat Organic’ brand, NCOL has launched products in four categories: 15 varieties of pulses, flour, three varieties of rice, six spices including cumin, coriander, turmeric, and carom seeds (ajwain), and sweeteners like jaggery, sugar, brown sugar, and khandsari.

NCOL has set up a packaging facility in Noida and is establishing processing units for rice and wheat in Punjab and Haryana.

NCOL is promoted by NDDB, NCCF, NCDC, and GCMMF (Amul), with NDDB as the principal promoter. The organization is also leveraging Mother Dairy’s marketing network and distributing through general retail chains, e-commerce platforms, and quick commerce services.

Mittal mentioned that procurement is strictly from farmers who possess valid organic certification. All products are tested for chemical residues at NDDB’s laboratory, and only those meeting quality standards are selected. NCOL has signed MoUs with 15 states to act as the nodal agency for organic food products.

Vipul Mittal emphasized that affordable pricing is essential to promote organic products in India. For this, it is critical to provide a reliable market to farmers so they can increase organic production. As demand and production grow, organic items can be made available to consumers at economical rates. Promoting organic farming will also improve soil health. With this vision, NCOL is committed to encouraging organic farming and ensuring market access for farmers’ produce.

7. PepsiCo India Launches Soil Testing Centres to Promote Smart Farming in UP, Bihar, and West Bengal

Rural Voice May 21, 2025

These soil testing centres, operated by trained women known as *Mitti Didis*, offer farmers faster and more accessible insights into soil health, enabling them to manage their land more effectively and sustainably.

In a move to promote sustainable farming, PepsiCo India has launched Mitti Jaanch Kendras (soil testing centres) across Uttar Pradesh, Bihar, and West Bengal. Operated by trained women known as Mitti Didis, these centres provide scientific, data-backed insights into soil health, helping farmers make informed decisions on crop and nutrient management.

The launch of soil testing centres was inspired by the need to provide farmers with precise and actionable insights into their soil health.The initiative aims to improve productivity through precision farming by analyzing soil pH, nutrient content, and other critical parameters.

Complementing this, Lay’s unveiled Mitti Ki Chitthi, a lyrical film that personifies Earth as a nurturing mother, strengthening the emotional bond between farmers and the land.

Speaking about the initiative, Anukool Joshi, Director Agro at PepsiCo India, said, “With the Mitti Jaanch Kendras, we aim to provide farmers with access to scientific, data-backed insights that help them make better decisions — whether it’s choosing the right nutrients or managing resources efficiently. This initiative is a step forward in our ongoing commitment to supporting farmers with the right tools and knowledge, and Mitti Ki Chitthi beautifully captures the spirit of that relationship between the farmer and the land.”

Currently working with over 27,000 farmers across 14 states, PepsiCo India continues to implement innovations like Lay’s Smart Farm and Mitti Didi to support better farming practices and sustainable sourcing.

8. India’s Foodgrain Output Hits Record High, Cotton Production Drops: Govt Estimates

RuralVoice, May 29, 2025

According to the third advance estimates, rice production in 2024–25 is expected to be 149.074 million tonnes (record), wheat 117.507 million tonnes (record), maize 42.281 million tonnes (record), and millets (Shree Anna) 18.015 million tonnes.

The Union Ministry of Agriculture has released the third advance estimates for agricultural production for the year 2024–25. Record production is estimated for paddy, wheat, maize, groundnut, and soybean in the country.

Union Minister of Agriculture and Rural Development, Shivraj Singh Chouhan, while releasing the estimates, stated that the country has witnessed a record increase in foodgrain production, which has risen by 6.5% to reach 353.959 million tonnes. He attributed this achievement to the tireless efforts of farmers, the expertise of agricultural scientists, farmer-friendly policies and schemes of the central government under the leadership of Prime Minister Narendra Modi, and the cooperation of state governments.

According to the advance estimates, rice production in 2024–25 is expected to be 149.074 million tonnes (record), wheat 117.507 million tonnes (record), maize 42.281 million tonnes (record), and millets (Shree Anna) 18.015 million tonnes. The total production of coarse/nutritious cereals is estimated at 62.140 million tonnes, which is 5.204 million tonnes more than last year.

Among pulses, production of arhar (tur) is estimated at 3.561 million tonnes, chickpea at 11.337 million tonnes, and moong at 3.819 million tonnes. However, urad production has declined from 2.319 million tonnes last year to 2.106 million tonnes. The total pulses production in the country is expected to increase by around 1 million tonnes to reach 25.238 million tonnes.

Total oilseeds production is estimated at 42.609 million tonnes, which is 2.94 million tonnes more than last year’s 39.669 million tonnes. Soybean production is expected to reach a record 15.180 million tonnes, and groundnut production a record 11.896 million tonnes, up by 2.118 million tonnes and 1.716 million tonnes, respectively, compared to the previous year. However, rapeseed-mustard production has declined from 13.259 million tonnes to 12.606 million tonnes.

In 2024–25, sugarcane production registered a slight decline and stood at 450.116 million tonnes. However, due to a drop in sugarcane output in several states, the country’s sugar production has declined by nearly 18%. This has raised questions over the sugarcane output data released by the agriculture ministry.

Cotton production in the country has also been hit, falling from 32.522 million bales to 30.692 million bales (each bale weighing 170 kilograms). This marks the second consecutive year of decline in cotton production.

9. Gujarat's Viksit Krishi Sankalp Abhiyan: Empowering 3.5 Lakh Farmers Across 2,951 Villages

ET Gov. 30 May 2025

At the launch event, the Chief Minister distributed assistance kits to farmers and reiterated his belief that Gujarat will play a pivotal role in realizing the goals of Viksit Bharat@2047.

Gujarat Chief Minister Bhupendra Patel launched the state-wide 'Viksit Krishi Sankalp Abhiyan' at Anand Agricultural University. The campaign, part of a national initiative inspired by Prime Minister Narendra Modi’s vision of Viksit Bharat, aims to empower more than 3.5 lakh farmers across nearly 3,000 villages in Gujarat.

The Abhiyan, running from May 29 to June 12, is being organized by the Department of Agriculture and Farmers Welfare, Government of India, with active participation from ICAR, Krishi Vigyan Kendras (KVKs), and agricultural universities. 55 teams of experts will lead on-ground efforts across 235 talukas in Gujarat, engaging directly with farming communities to promote advanced and climate-resilient farming practices.

Speaking at the launch, Bhupendra Patel described the campaign as a “golden opportunity delivered to the doorstep of Gujarat’s farmers.” He emphasized the state’s long-standing commitment to agricultural innovation and credited Modi’s tenure as Gujarat’s Chief Minister for laying the foundation for a modern, self-reliant farming ecosystem.

“From nano urea and drone technology to initiatives like Krishi Mahotsav and Soil Health Cards, Gujarat has consistently embraced innovation. This campaign continues that legacy, bringing science and technology directly to the farmers,” Patel said.

The campaign will offer hands-on guidance to farmers on natural farming techniques, soil health management, optimal fertilizer use, nano fertilizers, and the adoption of improved seed varieties. It will also serve as a platform to raise awareness about various Central and State government schemes designed for farmer welfare.

Across Gujarat's four agricultural university zones, the campaign targets:

Anand Agricultural University: 1.02 lakh farmers across 793 villages in 9 districts

Sardarkrushinagar Dantiwada Agricultural University: 80,000 farmers in 465 villages across 7 districts

Junagadh Agricultural University: 1.20 lakh farmers in 933 villages across 10 districts

Navsari Agricultural University: Over 71,000 farmers from 760 villages in 7 districts

At the launch event, the Chief Minister also symbolically distributed assistance kits to farmers and reiterated his belief that Gujarat will play a pivotal role in realizing the goals of Viksit Bharat@2047.

Dr. Manish Das from ICAR provided insights into the Council’s role in addressing real-world challenges faced by farmers. He noted that the campaign is aligned with the Prime Minister’s "Lab to Land" approach and is expected to reach nearly 1.5 crore farmers across India. “Through this initiative, ICAR scientists will work closely with farmers to find solutions tailored to their local conditions,” Das said.

K.B. Kathiria, Vice-Chancellor of Anand Agricultural University, described the campaign as a platform for “mutual learning” between scientists and farmers, underscoring the importance of co-creating knowledge in agriculture.

The event concluded with a vote of thanks by Prakash Rabari, Director of Agriculture. Also in attendance were Deputy Chief Whip Raman Solanki, Member of Parliament Mitesh Patel, district leader Sanjay Patel, MLAs Yogesh Patel, Chirag Patel, Kamlesh Patel, and Vipul Patel, as well as senior officials including Additional Chief Secretary of Agriculture Anju Sharma, Managing Director of Agro Industries Vijay Kharadi, Secretary of Agriculture and Cooperation Department P.D. Palsana, District Collector Pravin Chaudhary, District Development Officer Devahuti, and Superintendent of Police Gaurav Jasani.

10. Farm Mechanization Holds the Key for Agricultural Transformation Under Emerging Challenges

RuralVoice, Jun. 02, 2025, Dr RS Paroda

The article emphasizes the transformative role of farm mechanization in addressing the emerging challenges of Indian agriculture, including climate change, labor shortages, and sustainability. It highlights the need for scale-appropriate technologies, improved access through custom hiring centers, and integration of AI, robotics, and renewable energy. Agricultural engineering is positioned as a catalyst for innovation, productivity, and resilience.

Agriculture is confronted with emerging challenges; environmental degradation, climate change, rapidly growing young population, and changing consumption patterns. In smallholder systems of the global South, manual labour preoccupies much of the physical and intellectual resources of a large share of the world’s 550 million family farms leading to drudgery, risks of changing climate, low cropping intensity and larger yield gaps. India has made significant progress in agricultural engineering with an average mechanisation level of 47 per cent compared to many developing countries. However, there exists a large variation in mechanization in different crops (69% in wheat, 33% in millets) and states (highest in Haryana and Punjab) and lags behind in comparison to other BRIC countries such as Brazil and China. Scale appropriate farm mechanization promises to help timeliness of farm operations, raise labour productivity and reduce the heavy toil of farming on the millions of smallholder farms, hence contributing to socioeconomic development through enhancing food security and employment opportunities while arresting environmental degradation. Mechanization is therefore placed at high pedestal on the development agenda of developing nations and emerging economies in the global South.

Poverty reduction, climate mitigation, land degradation neutrality, and agricultural transformation through sustainably intensifying production and strengthening agri-food system value chains are crucial to achieve faster growth. Farm mechanization is an essential integral part of the agricultural intensification process and has a key role in achieving several SDGs. Agricultural mechanization involves the use of mechanical power across the agri-food system value chain, including farm production, post-harvest handling, storage and processing. Farm mechanization offers a unique potential for smallholder farmers and is an essential agricultural input with the potential to transform the lives and economies of millions of rural families.

The famous quote, “Everything else can wait but not Agriculture” signifies the importance of timeliness of agricultural operations which can’t be achieved without mechanization. However, there is an urgent need for all stakeholders- farmers, supporters, researchers, extension agents, planners or policy makers- to understand and contribute to agricultural mechanization efforts across the entire farming system and with a value chain perspective.

Increased agricultural mechanization at farm level and in the agrifood value chain that is economically, environmentally and socially sustainable is critical. Use of agricultural mechanization within a sustainability framework can bring a wide range of benefits through time efficiency speeding up operations in the agri-food system value chain, increased yields, reduced production costs, increased cropping intensity, increased efficiency of production inputs, minimizing climate risks, reduced post-harvest losses and drudgery of agri-food system actors. However, context-specific value chain mechanization solutions are critical for achieving the goals of sustainably increasing food production Therefore, developing, refining, adapting and targeting scale appropriate value chain mechanization solutions to diverse cropping/farming systems, and soil types coupled with increased investments are critical for the impact at scale.

This article delves into the significant impacts of agricultural engineering research and education on Indian agriculture, advocating for convergence of innovation, education, and farmer empowerment to create a vibrant and sustainable agricultural landscape.

Agricultural Engineering: A Catalyst for Transformation

The agricultural sector in India has undergone a significant transformation, particularly since the advent of the Green Revolution when India was importer of foodgrains and now it exports almost 55 billion USD and likely to contribute to our national target of 5 trillion USD economy by 2030, as agriculture is contributing about 17-18 percent of national GDP. While the initial focus was unequivocally on enhancing crop production to achieve national food security, the contemporary challenges confronting Indian agriculture necessitate a far more comprehensive approach. These challenges encompass critical areas such as small and fragmented land holdings and diversity of farming systems, skewed mechanization operations, high equipment cost and poor after-sale service, financing of farm equipment, efficient post-harvest management to minimize food loss, adding value to agricultural produce to increase farmer incomes, and ensuring the long-term sustainability of agricultural practices to safeguard natural resources. Notably, the commercial financial institutions are primarily focusing on larger machinery and not small-scale machinery which is one of the biggest impediments to the increase in mechanisation level in India. Also, the complex process of financing farm implements and higher interest rates are not encouraging smallholder farmers for investments on mechanization. Agricultural engineering has emerged as a catalyst in addressing these multifaceted needs, playing a significant role in introducing and implementing transformative technologies across the agricultural value chain.

Empowering the Farmers and Enhancing Efficiency through Mechanization

One of the most significant contributions of agricultural engineering has been the widespread mechanization of farm operations. India has emerged as a global powerhouse in tractor manufacturing, producing nearly one million units annually i.e. half of the global tractor production. This remarkable achievement has not only reduced the physical drudgery faced by farmers, traditionally reliant on manual labor and animal power, but has also significantly improved efficiency in various farm operations. Tractors, combined with a range of implements like plows, harrows, and seed drills, have streamlined land preparation, sowing, and harvesting, enabling farmers to cultivate larger areas in shorter periods. AI, robotics, and new mechanical technologies are revolutionizing agricultural engineering research and education, driving unprecedented gains in productivity. AI-powered systems can analyze vast datasets from sensors and satellite imagery to optimize irrigation, fertilization, and pest control strategies, minimizing resource waste and maximizing yields. Robotics are automating labor-intensive tasks like planting, harvesting, and weeding, addressing labor shortages and improving efficiency. Moreover, advanced mechanical technologies, such as precision planting equipment and autonomous tractors, enable more accurate and efficient field operations. Through agricultural engineering research, these innovations are continuously refined and adapted to specific crop and environmental conditions.

Conservation Agriculture for Sustainability and Climate Resilience

Conservation agriculture (CA) is a paradigm shift in farming practices. Techniques such as zero tillage and direct seeding, both key components of conservation agriculture, have revolutionized land management by minimizing soil disturbance. These methods offer a multitude of benefits, including the conservation of precious soil moisture, reduction of greenhouse gas emissions through minimized tillage, and improvement of overall soil health by promoting beneficial microbial activity. Reducing the input cost and increasing the farmers’ income especially for the dryland areas (about 50%) is important as these have to be made green because they were bypassed by the Green Revolution. For this, there is a need to develop appropriate equipment and machineries which can help in adopting CA which has advanced very fast over the last two decades in Argentina, Brazil, USA, Canada, and Australia. Adoption of CA globally is a testament to its effectiveness, with practices being implemented on over 200 mha worldwide. While adoption of CA in India is increasing, there is still significant potential for expansion. Agricultural engineers are at the forefront of developing and adopting CA technologies to suit the diverse agro-climatic conditions of India, thereby contributing to a more sustainable and climate-resilient agricultural sector.

Optimizing Water Use and Enhancing Crop Productivity through Micro-irrigation

Water scarcity is an increasingly pressing concern in many parts of India. Micro-irrigation systems, such as drip irrigation and sprinklers, offer a revolutionary approach to water management by delivering water directly to the root zone of plants, and minimizing losses due to evaporation and runoff. Despite the clear advantages of micro-irrigation, only around 10% of irrigated land in India is currently under these systems. Out of 140 mha, micro-irrigation adoption has reached 10 percent area, with the potential to reach 30 percent. This represents a vast untapped potential to significantly improve water-use efficiency and enhance crop yields. Agricultural engineering plays a critical role in designing, installing, and maintaining these sophisticated irrigation systems, ensuring their optimal performance and maximizing their impact on agricultural productivity. Furthermore, research and development efforts are focused on developing innovative micro-irrigation technologies that are cost-effective and suitable for smallholder farmers in India.

The farmers expressed the need for knowledge beyond conventional agricultural practices, specifically secondary and specialty agriculture and emphasized that youth are less interested in routine farming methods. Therefore, we must promote innovative approaches such as vertical agriculture and protected cultivation. However, the area currently covered under protected cultivation in India is only approximately 70,000 ha as against 2.0 mha in China. To reach even 1,0 mha, we require a more aggressive and focused approach in mission-mode for significant improvement in agricultural engineering.

Skill Development for Empowering Youth

To fully harness the potential of agricultural engineering, it is imperative to invest in comprehensive skill development programs that equip the youth with the knowledge and expertise required to operate and manage modern agricultural technologies. These programs should focus on imparting skills in cutting-edge areas such as artificial intelligence (AI), robotics, drone technology, and precision farming tools. By providing young people with the skills needed to navigate the rapidly evolving agricultural landscape, we can create a new generation of technology-savvy farmers and agricultural professionals who can drive innovation and improve productivity. Furthermore, skill development programs should be tailored to the specific needs of local communities and should emphasize hands-on training and practical experience.

Making Technology Easily Accessible

The high capital investment required for modern agricultural equipment often presents a significant barrier for small and marginal farmers, who constitute the majority of the farming population in India. Establishing custom hiring centers, which function as machinery rental hubs, can effectively address this challenge by making advanced equipment accessible to farmers who cannot afford to purchase it outright. These centers can provide a range of services, including machinery rental, repair, and maintenance, as well as training on the proper operation of equipment. By easy access to modern technology, custom hiring centers can empower small and marginal farmers to improve their productivity and profitability. AI and robotics, including the use of drones for improved fertilizer use efficiency, employing nanotechnology need to be effectively used. However, to fully realize the potential of these technologies, it is crucial to train the youth. While technologies like the Happy Seeder enable in-situ conservation, improve soil health, and facilitate direct seeding of wheat after rice without burning rice straw, the limited availability of this machinery to farmers remains a major constraint. Therefore, there is a need to establish machinery hiring centers through farmers' cooperatives, farmer producer organizations, government agencies, or even by the industries themselves. The relatively short window of about 20 days for using this equipment, makes individual farmer investment in CA machinery less viable. Community-based approaches, facilitated by custom hire centers (including those established by Krishi Vigyan Kendras – KVKs), can significantly improve adoption. Furthermore, training youth to provide private extension services would be highly beneficial.

Similarly, while there is interest in investing in protected cultivation, such as greenhouses, successful operation requires specialized technology for fertigation, vernalization, and solarization. The adoption of these technologies is often hindered by lack of accessible innovative extension services. Therefore, large industries should leverage their Corporate Social Responsibility (CSR) initiatives to support institutions in providing private extension services, thereby empowering the youth and fostering sustainable agricultural practices.

Addressing Sustainability Challenges

Indian agriculture faces significant sustainability challenges due to resource depletion, climate change, and environmental degradation. Agricultural engineering offers a range of solutions to mitigate these challenges and promote a more sustainable agricultural system.

(i)Carbon Framing

Conservation agriculture practices with their focus on minimizing soil disturbance and promoting soil health, play a crucial role in carbon sequestration. By adopting CA practices, India can make a significant contribution to meeting its carbon sink target of 3 billion tons as per its commitments under the Paris Agreement. Agricultural engineers must pay greater attention for researching and developing innovative CA technologies that enhance carbon sequestration and improve soil health.

(ii) Reduction in Post-Harvest Losses

Significant quantities of agricultural produce are lost after harvest (6-7%) due to improper storage, inadequate processing facilities, and inefficient packaging. These post-harvest losses not only represent a significant economic loss to farmers but also contribute to greenhouse gas emissions through the decomposition of wasted food. Agricultural engineering plays a critical role in developing and implementing technologies for improved storage, processing, and packaging that minimize post-harvest losses. By reducing food waste, we can improve food security, reduce environmental impact, and increase farmer incomes.

(iii) Renewable Energy Integration

The agricultural sector is a significant consumer of energy, primarily for irrigation, farm operations, and post-harvest processing. Promoting the integration of renewable energy sources, such as solar power and biogas, can significantly reduce the dependence on fossil fuels and mitigate the environmental impact of agriculture. Solar-powered irrigation systems, for example, offer a clean and sustainable alternative to diesel-powered pumps, while biogas plants can convert agricultural waste into valuable energy. Agricultural engineers are actively involved in developing and deploying renewable energy technologies that are cost-effective and suitable for the specific needs of the agricultural sector.

Way Forward

To further enhance the impact of agricultural engineering education and research on Indian agriculture, following actionable steps for the way forward for a more sustainable and prosperous future are proposed:

(i)Curriculum Reorientation

Agricultural engineering education needs to be reoriented by including vocational training programs alongside traditional degree courses. This will equip students with the practical skills and knowledge needed to become entrepreneurs and innovators in the agricultural sector. By fostering a culture of entrepreneurship, we can create new opportunities for youth (including women) and drive innovation in agricultural technologies and practices.

(ii) Focus on Secondary Agriculture

Encouraging diversification into value-added products, such as processed foods, can significantly increase farmers' incomes and create new economic opportunities in rural areas. Agricultural engineering plays a critical role in developing and implementing technologies for food processing, packaging, and preservation. By supporting the development of secondary agriculture, we can create a more resilient and diversified agricultural sector.

(iii) Scaling Innovations

There is a need to develop enabling policies that incentivize the adoption of disruptive technologies to bring significant improvement in agricultural productivity and sustainability and transform rural economies. These technologies may include precision farming tools, drone technology, and AI-powered agricultural solutions.. Given the diversity of farming systems, soils, agro ecologies and socio-economic circumstances, a need based mechanization is critical for targeting geographically differentiated production systems. This will not only help in developing context relevant mechanization solutions but also help industry to set-up manufacturing capacity in relevant geographies to cater the local needs.

(iv) Empowering Farmers with Knowledge

Investing in strengthening extension services is important for ensuring that farmers have access to the information and technical support they need to adopt new technologies and practices. Training youth to provide private extension services for advanced technologies including AI, robotics, drone technology, protected cultivation and fertigation, can create new employment opportunities and improve the quality of agricultural extension services.

(v) Public-Private Partnership (PPP) for Adoption and Scaling Innovation

Public-Private Partnership (PPP) represents a powerful mechanism for accelerating the commercialization of research outputs and ensuring their adoption at the grassroots level. By leveraging the expertise and resources of both the public and private sectors, PPPs can facilitate the development and deployment of innovative agricultural technologies that address critical challenges facing Indian agriculture. PPPs can also play a crucial role in establishing extension services that provide farmers with access to information and technical support on the use of new technologies. By fostering collaboration between academia, industry, and government, PPPs can drive innovation and create a more vibrant and sustainable agricultural sector.

Conclusions

Agricultural engineering has emerged as a cornerstone of India's agricultural progress, playing a vital role in addressing critical challenges in productivity, sustainability, and rural livelihoods. Agriculture is not just about production; it is about creating value. By fostering innovation-driven growth through education and research, India can achieve its vision of becoming a global leader in sustainable agriculture while ensuring prosperity for its farmers. The path forward requires a collaborative effort involving academia, industry, and farmers, driven by a commitment to innovation, sustainability, and the empowerment of rural communities. By embracing the transformative power of agricultural engineering, India can build a more resilient, prosperous, and sustainable agricultural future to contribute significantly towards the 5 trillion USD national economy.

(The writer is Chairman, Trust for Advancement of Agricultural Sciences (TAAS) and Former Secretary, DARE & Former Director General, ICAR, New Delhi)

- Industry and Manufacture

11. Hon Hai Precision Industry Co Apple India: Hon Hai, main manufacturer of Apple's iPhones, commits $1.5 billion to India

ET Gov. 21 May, 2025

Hon Hai Precision Industry Co., the main manufacturer of Apple Inc.'s iPhones, will inject $1.5 billion into its India unit as production shifts away from China.

The Taiwan-based company said in an exchange filing on Monday that it had made the investment through its Singaporean subsidiary. Hon Hai, which is building new plants and adding production capacity in southern India, didn't immediately respond to an emailed request for comment.

Apple is looking to import most of the iPhones it sells in the US from India by the end of next year, drawing the wrath of US President Donald Trump, who said last week he'd asked Apple CEO Tim Cook to stop building plants there.

Trump's comments accelerate a shift beyond China to mitigate risks related to tariffs and geopolitical tensions. Apple makes most of its iPhones in China and has no smartphone production in the US - though it's promised to hire more workers at home and pledged to spend $500 billion domestically over the next four years. Hon Hai is also increasing its investments in the US .

12. Unlocking India’s Potential: The Imperative of a Thriving MSME Sector

ET Gov., 24 May, 2025

For India to achieve its goal of becoming a developed nation, the MSME sector’s contribution to GDP should also grow from 29% to around 60%.

Recently, Finance Minister Nirmala Sitharaman reiterated India’s goal to become ‘Viksit Bharat’ by 2047. "Viksit Bharat" is not just about the size of the economy; it's about improving the country's per capitaincome. As per Jefferies’s report, India is projected to be the world's fastest-growing large economy with the IMF forecasting a 6.3% GDP growth over 2024-28E. The country enjoys a strong demographic profile as the working age population ratio is still rising and about 175m workers will be added to the workforce over the next ~20 years.

The micro, small, and medium enterprises (MSMEs) sector is growing rapidly and has the potential to employ people by utilizing India’s digital infrastructure, improved credit access,and easy access to the Internet among other factors. However, more steps need to be taken as the sector is largely untapped. International financial organizations currently consider countries with a per capita income of $13,845 or higher as developed nations. India's current per capita income is $2,500, indicating a significant gap that needs to be bridged. It means that our country needs to grow inclusively and more employment opportunities shall be created to reach the per capita target for a developed country.

According to the United Nations Development Programme, the MSME sector’s contribution to China’s GDP is 60%. For India to achieve its goal of becoming a developed nation, the MSME sector’s contribution to GDP should also grow from 29% to around 60%. The majority of the employment opportunities and growth in Tier 4 cities and beyond will come from the MSME sector. The onus is on us to ensure that MSMEs have the right set of infrastructure to capitalize on their full potential.

MSMEs are largely promoter-led companies and majorly resort to loans from the banks and NBFCs for business expansion whereas corporations raise funds largely from the public. It helps enhance the capital cycle of the country and ensures efficient capital formation, capital flows, and the working capital cycle.

The sector will be able to generate much higher returns, and employment, and acquire capital assets to fuel the economy. According to the Economic Survey, MSMEs are taking debt to expand their business while corporates are increasingly raising funds through corporate bonds. According to CareEdge report, the private sector banks have registered 18% CAGR in the past five fiscal years, whereas NBFCs have registered growth of 31% CAGR in the last three fiscal years. However, banks and NFCs have a long way to go to ensure that all the eligible MSMEs are getting the needed financial support and propel the country for higher economic growth. Additionally, MSMEs reinvest the profit in the business instead of distributing it to shareholders whereas corporations have to distribute profits to shareholders and comply with taxation law and other company laws that ultimately limit their potential to grow at an exponentially higher rate.

The financial access will help MSMEs become more agile and quick to adapt & innovate as per the market conditions which gives them agility over large businesses. According to Annual Report 2022-23 by the Ministry of Micro, Small and Medium Enterprises (MSME) Out of 633.88 lakh estimated number of MSMEs, 324.88 lakh MSMEs (51.25%) are in rural areas and 309 lakh MSMEs (48.75%) are in the urban areas that will help reduce regional economic disparity and promote exports and financial inclusion in the country.

How are MSMEs playing a significant role in India’s economy?

According to the Press Information Bureau (PIB), MSMEs contribute 35.4% to India’s manufacturing output and contribute 29% to the overall GDP. Of the 64 crore employed people in India, MSMEs provide jobs to more than 20 crore individuals. In comparison, MSMEs in developed countries like China contribute around 60% to their GDP. This suggests that India’s MSME sector needs to double its contribution to the GDP over the next 25 years. To achieve this, the sector will need to upgrade its technology and machinery, which will also create more employment opportunities and ensure inclusive growth. Increasing their role in manufacturing will help MSMEs generate more jobs across the country and further expand their businesses.

Exports play a significant role in a country’s economic growth and by increasingly contributing to global exports can enhance economic strength. As per media reports, In 1970 both India and China’s contribution to global export was 0.7%. However, In 2022, India's share in global exports was 2.5%, compared to China's 11.9%. One of the significant aspects behind China’s economic growth is its higher export rate. The technological advancement and know-how will help MSMEs to expand their business from local to global. Deputy Governor of the RBI, Shri Swaminathan J, in his recent speech mentioned that MSMEs are the key player in enhancing India’s global economic footprint. Acceptance of Indian MSMEs products and services is growing globally. This growth potential in world markets is a golden opportunity for Indian MSMEs to increase their global trade footprint and boost foreign exchange reserves. In 2020, China’s MSMEs contributed to 68% of total exports whereas Indian MSMEs contributed to 50% of total exports. It implies that MSMEs' contribution also needs to be increased in order to enhance their global footprint.

The current budget has introduced key initiatives for MSMEs, including a new credit assessment model, a Credit Guarantee Scheme, and stress period support. However, there's still room for further upliftment of the sector. Investing in training programs to upskill the workforce and improving management practices within MSMEs can help them increase their operational efficiency. Expand access to low-interest loans, grants, and subsidies specifically tailored for MSMEs. Implement initiatives to enhance financial literacy among MSME owners. Extending support to those MSMEs who are looking to enter into international markets can help them expand their business.

To simplify finance to MSMEs, collaboration with fintech companies can further streamline the process in underserved regions. Additionally, Simplifying the regulatory environment and reducing compliance burdens through streamlined processes is an essential step for their growth. With these strategies, India can unlock the full potential of its MSME sector, positioning it as a key driver of economic growth.

13. National Monetisation Pipeline: NHAI Unveils First Asset Monetisation Strategy to Drive Private Investment in Road Infrastructure

ET Gov. 11 Jun. 2025

NHAI’s efforts as an early adopter of asset monetisation tools have proven instrumental in enhancing the financial viability of India’s highway development programme.

NEW DELHI: In a significant move to attract private capital and ensure sustainable infrastructure financing, the National Highways Authority of India (NHAI) today released its first-ever Asset Monetisation Strategy for the Road Sector. The document provides a comprehensive framework for monetising operational National Highway assets through Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation models.

These mechanisms, already in practice under the National Monetisation Pipeline (NMP), have helped NHAI raise over ₹1.4 lakh crore from more than 6,100 km of national highways, demonstrating the viability and impact of alternative financing tools in the road sector.

Key Pillars of the Strategy

The strategy is structured around three central pillars:

Value Maximisation of operational highway assets

Transparency and dissemination of investor-relevant information

Market development through an expanded investor base and stakeholder engagement

These pillars aim to create a robust and predictable investment ecosystem that supports long-term infrastructure development.

Leadership Perspective

Commenting on the launch, NHAI Chairman Santosh Kumar Yadav said: “This unique approach to asset monetisation ensures not just financial sustainability but also opens up opportunities for the private sector to bring in innovation, technology, and improved asset management. It reduces dependence on traditional funding while enhancing the quality and longevity of road infrastructure.”

NRVVMK Rajendra Kumar, Member Finance, NHAI, added: “The document outlines a strategic and structured approach to asset identification, valuation, and monetisation—ensuring transparency and bolstering investor confidence.”

Strategic Alignment and National Goals

The monetisation strategy aligns with the Government of India’s Asset Monetisation Plan 2025–30, which aims to unlock the commercial potential of public infrastructure and shift towards market-driven, sustainable financing models.

NHAI’s efforts as an early adopter of asset monetisation tools have proven instrumental in enhancing the financial viability of India’s highway development programme. The success of this strategy is expected to catalyse greater private sector participation and support the continued expansion and upkeep of India's extensive road network.

The full strategy document is available on the NHAI website.

14. Rajasthan Drives India's 500 GW RE Goal and Net-Zero Vision: Policy, PSUs, Tech Synergy

ET Gov. 21 May, 2025

The panel discussion concluded with a shared acknowledgement that Rajasthan’s renewable energy journey is no longer just a state initiative—it has become a national imperative.

At the Rajasthan Renewable Energy Conclave 2025 hosted by ET Government, a dynamic panel discussion featuring Dr. Anjali Jain, Consultant G-II Energy at NITI Aayog, and S. Vijay Kumar, Chief General Manager at NLC India Ltd., brought critical insights into how Rajasthan is becoming central to India’s renewable energy roadmap.

Both panelists articulated a compelling vision where strategic policy, public-private collaboration, and technological innovation converge to make Rajasthan a key driver of India's clean energy future.

India Eyes 500 GW Renewable Energy Milestone by 2030

Dr. Anjali Jain highlighted some statistics: India currently has an installed renewable energy capacity of approximately 105 gigawatts in solar and 50 gigawatts in wind. Rajasthan plays a significant role, contributing about 28 gigawatts of solar, which is nearly 28% of India’s total, and around 5 gigawatts of wind, accounting for roughly 10% of the national wind capacity.

Under the Rajasthan Integrated Clean Energy Policy launched in 2024, the state aims to reach a renewable energy capacity of 125 gigawatts by 2030, including 90 gigawatts of solar, 25 gigawatts of wind and hybrid, and 10 gigawatts from pumped hydro, battery storage, and other sources. This represents close to 40% of India’s national target of 500 gigawatts of renewable energy by 2030. In the green hydrogen sector, Rajasthan has set a target of producing 2,000 kilotons annually by 2030, which is again about 40% of India’s national goal of 5 million tonnes.

Currently, India imports more than 2 million tonnes of ammonia each year, which green hydrogen derivatives from Rajasthan could help replace. Our grid emission factor stands at 0.7, and the electricity demand in India is expected to grow five to six times by 2070.

Dr. Jain noted that NITI Aayog has been closely working with state governments to promote structural changes that can enable long-term investment while also reducing project delays. In Rajasthan, this involves efforts to streamline land acquisition processes, build out the state’s transmission infrastructure, and create a single-window clearance system to attract investors and developers. These steps are aimed at ensuring predictability, and improving the overall bankability of projects.

The simplification of regulatory approvals and the alignment of open access and energy banking policies with national guidelines are also key focus areas. Coordination between central and state governments is another pillar of the renewable energy rollout, and NITI Aayog plays a central role in facilitating this alignment. Dr. Jain pointed out that the think tank serves as both a knowledge partner and a convener, helping to synchronize national objectives with on-ground realities in various states.

Public Sector Push: Rajasthan Emerges as PSU-Focused RE Growth Zone

From the public sector perspective, S. Vijay Kumar of NLC India Ltd. echoed the view that Rajasthan holds enormous potential in driving India’s renewable energy expansion. He outlined how NLC, a key central public sector undertaking, is actively building its presence in the state with a robust portfolio of solar projects and plans to diversify into wind and hybrid energy systems.

NLC’s vision is closely aligned with the national target of 500 GW non-fossil capacity by 2030, and the company sees Rajasthan as an ideal zone to scale up operations due to its natural advantages and supportive policy environment. Kumar noted that the combination of high solar irradiance, contiguous land parcels, and proactive governance makes Rajasthan an unparalleled destination for renewable energy investments.

He pointed out that investors are increasingly drawn to Rajasthan because of the state’s ability to offer both scale and stability. The Rajasthan government has taken notable steps to enhance investor confidence, such as the creation of land banks for renewable energy projects, the introduction of streamlined approval systems, and reforms in the open access regime.

These factors have made it easier for utility-scale developers to plan and execute gigawatt-level projects with confidence in grid evacuation and project viability. Moreover, the maturing ecosystem of EPC contractors, equipment manufacturers, and financial institutions in the state adds to its appeal as a renewable energy hub.

Looking to the future, Kumar highlighted emerging technologies that will reshape the renewable energy landscape in the next decade. Battery energy storage systems are expected to play a crucial role in managing grid stability and enabling time-shifted power generation.

He also pointed to the promise of green hydrogen, particularly in Rajasthan’s industrial zones, and digital tools like AI-based forecasting, SCADA systems, and predictive maintenance technologies, which are essential for optimizing plant efficiency and grid operations. For NLC, integrating such technologies is not a distant aspiration but an active part of its strategy to remain competitive and future-ready in a rapidly evolving energy market.

The panel discussion concluded with a shared acknowledgement that Rajasthan’s renewable energy journey is no longer just a state initiative—it has become a national imperative. Both Dr. Jain and Kumar agreed that Rajasthan is setting the template for how coordinated policy, smart financing, and technology-driven implementation can power India's clean energy transition.

With the continued collaboration of central think tanks like NITI Aayog, progressive state leadership, and capable public sector enterprises, Rajasthan is poised to become not only a leader in renewable energy but also the energy capital of India’s green future.

15. India's Skill Development Ministry Empowers 1.5 Crore People, 80% Women Beneficiaries in Jan Shikshan Sansthan

ET Gov. 13 Jun. 2025

Through the Jan Shikshan Sansthan (JSS) scheme, over 5.05 lakh individuals have been trained 80 per cent of them women.

NEW DELHI: From dusty village corners to buzzing digital labs, India's skilling movement has found new energy. Over the past year, the Ministry of Skill Development and Entrepreneurship (MSDE), under the steady guidance of Minister of State (Independent Charge) Jayant Chaudhary, has quietly rewritten the story of India's workforce, empowering over 1.5 crore people with skills that matter, the ministry said in a press release.

This momentum didn't happen overnight. It has been built through a mix of policy reform, industry partnerships, and deep community outreach. Take the Pradhan Mantri Kaushal Vikas Yojana (PMKVY 4.0)--over 1.63 crore youth have been trained, many in future-ready sectors like electronics, logistics, and healthcare.

Likewise, the National Apprenticeship Promotion Scheme (NAPS) has placed more than 8.7 lakh apprentices across 1.5 lakh businesses, reflecting a strong push toward practical, on-the-job learning.

A key strength of this movement has been the rising participation of women. Through the Jan Shikshan Sansthan (JSS) scheme, over 5.05 lakh individuals have been trained 80 per cent of them women. From tailoring and beauty services to digital skills, women across India are stepping into the workforce with growing confidence and capability.

To make apprenticeships more attractive, the government approved a 36 per cent hike in stipends, now ranging from Rs 6,800 to Rs 12,300 per month, with adjustments every two years based on inflation.

This practical support is helping reduce dropouts and making apprenticeships a more viable choice, especially for those from low-income households.

The transformation goes beyond individuals--it extends to institutions. Traditional ITIs are being upgraded with smart classrooms and updated curricula.

A major leap came with the Rs 60,000 crore National Scheme for ITI Upgradation, which will modernise 1,000 ITIs and establish five National Centres of Excellence. These are being designed to meet the demands of a rapidly evolving job market.

A big part of this shift is also digital. The Skill India Digital Hub (SIDH) has emerged as a powerful platform--over 1 crore users and 50 lakh course completions--offering skills in AI, drone technology, cloud computing, and more.

The portal is now integrated with flagship schemes like PM Vishwakarma, JSS, and even Green Hydrogen training, bringing high-tech learning to the remotest parts of the country.

SIDH is also driving trust and transparency in certification. New NCVET-certified digital credentials now include QR codes, NSQF levels, photographs, and secure signatories--making certificates easier to verify and more useful for employers.

The onboarding of JSS institutions onto SIDH using mobile OTP and Aadhaar e-KYC has made registration simple and scalable.

On the ground, the energy is visible at events like Kaushal Mahotsavs in Bijnor and Bharatpur. With 17,000+ registrations and 3,000+ placements on the spot, these events are not just about employment--they're about creating hope at scale.

At a policy level, more doors are being opened. The Model Skill Loan Scheme was relaunched with a higher credit cap--Rs 7.5 lakh, up from Rs 1.5 lakh--and now includes NBFCs and non-NSQF courses, allowing more youth to access high-quality training, even from private institutes.

Minister Jayant Chaudhary's commitment to industry alignment has also strengthened public-private partnerships. Under PMKVY 4.0, collaborations with Air India SATS, Flipkart, and Swiggy are enabling co-pay skilling with guaranteed placements.

And to future-proof this ecosystem, 8,000 new trainers are being trained under ToT programmes with HAL, ICT Academy, and NAC.

Institutional development continues apace. Two Indian Institutes of Skills (IIS)--in Mumbai and Ahmedabad--have begun operations, with the first batches graduated in October 2024. Another 200 ITIs are being upgraded as Centres of Excellence, with 800 more in a spoke-hub model.

Pilot programmes like the AI Programming Assistant, now running in 19 NSTIs, offer a glimpse into tomorrow's skill landscape.

India's skill development efforts are also gaining global recognition. Renewed MoUs with Germany and Singapore, and the Ministry's presence at the World Economic Forum in Davos, highlight India's increasing role in shaping the future of global workforce standards.

One standout partnership is with Microsoft--the AI Careers for Women initiative will train 20,000 women in Tier II and Tier III towns, blending innovation with inclusion.

Across all these achievements, a quiet but clear narrative emerges--this isn't just a year of activity; it marks the beginning of long-term transformation. Minister Jayant Chaudhary's inclusive and reform-driven leadership has focused on making skills more accessible, market-relevant, and future-ready.

From policy reform to digital innovation, and from women-led progress to global collaboration, the Ministry's work is no longer just about training--it's about changing lives. And the journey, it seems, has only just begun.

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

16. Young Scientists: Harnessing Science-Led Entrepreneurship for Global Innovation

ET Gov. 14 Jun. 2025

India’s Digital Public Infrastructure (DPI) has been foundational: Aadhaar for identity, UPI for payments, ONDC for commerce, and IndiaAI for ethical artificial intelligence.

We are living in a decisive decade. The planet is heating, misinformation is metastasising, and inequality is widening. These crises are not waiting for consensus papers or citations. They need action: fast, bold, and grounded in science. But science alone won’t save us. Innovation will. And entrepreneurship is how we scale it.

This is not a rallying cry for startups for their own sake. It’s a call to embrace entrepreneurship as the engine that carries science from a lab bench to villages, from insight to impact. In a world overrun with complex, cross-border challenges, the gap between knowledge and implementation is no longer a luxury, it’s a clear and present danger. If we cannot bridge it, we stall, humanity and progress both come to a grinding halt .

When Visionaries Converge

That urgency was front and centre at the recent International Conference of Young Scientists at IIT Hyderabad, one of the largest and most diverse global convenings of early-career researchers in Telangana. In a powerful address, Union Education Minister Dharmendra Pradhan inaugurated the 15th anniversary of the Global Young Academy (GYA), calling for deeper integration of research, innovation, and entrepreneurship to shape India's future. Alongside him, Prof. Budaraju Srinivasa Murty, director IIT Hyderabad, a pioneering metallurgist and transformative leader, embodied the aspirations of a new generation.

This historic gathering, co-hosted by IIT Hyderabad, the Government of Telangana, the Indian National Science Academy, and GYA, wasn’t just a celebration of science, it was a clarion call to turn scientific discovery into a scalable global good.

From Bengaluru to the World: India’s Innovation Blueprint

India’s transition from a technology back-office to a front-runner in global innovation has taken decades, but it’s now undeniable. No longer just the site of outsourced code, India is emerging as a laboratory for globally relevant, locally rooted innovation built for scale.

Take InMobi, for instance. Born in Bengaluru, it was India’s first unicorn. But its real breakthrough came recently with Glance, a lock-screen platform now reaching hundreds of millions, and Glance AI, which is setting a new standard for ethical, frictionless AI-powered commerce. These platforms don’t just transact. They understand people. They don't just build algorithms. They build trust and global AI use cases.

This isn’t just one company’s success. It’s India’s blueprint. Homegrown companies are shaping global tech norms and proving that innovation in the Global South isn’t about catching up, it’s about leading differently. The world isn’t just watching India anymore. It’s learning from it.

The Global South Rises — Innovation Everywhere

The Global South is no longer peripheral to innovation; it’s becoming central. Across India, Nigeria, Brazil, and Southeast Asia, high-impact entrepreneurship is rising, not in glossy towers, but in Tier II cities and rural labs. India alone registered over 1,200 new tech startups in 2023, with cities like Coimbatore, Bhubaneswar, and Jaipur seeing a 40% spike in registrations.

This is the democratisation of innovation and it’s policy-enabled. India’s Digital Public Infrastructure (DPI) has been foundational: Aadhaar for identity, UPI for payments, ONDC for commerce, and IndiaAI for ethical artificial intelligence. When national platforms meet progressive state-level policy, like Telangana’s pioneering work with T-Hub, WE Hub, and AI governance, the result is exponential impact.

Young Scientists, Big Stakes

Today’s early-career scientists are not waiting to be told they matter. They are building what matters.

This new generation defies the old dichotomies between research and risk-taking, between lab work and field impact. These are scientists who code, collaborate, and crowdfund. They are comfortable navigating both peer review and venture capital. And they are proving that knowledge and action are not opposites, they are companions.

But their path isn’t easy. As they disrupt and innovate, many operate in under-resourced ecosystems, lacking mentorship, policy support, or access to catalytic capital. That’s why platforms like the Global Young Academy matter: not just to spotlight their work, but to scaffold it. With global networks, interdisciplinary collaborations, and strategic partnerships like the US–India NIHIT initiative, these efforts help turn potential into performance.

Innovation Needs New Muscles

To truly innovate, scientists need more than technical expertise. They need the ability to communicate clearly, collaborate across silos, and — crucially — to take risks. They must be willing to fail forward, to prototype, iterate, and pivot. These are the muscles that entrepreneurship strengthens.

Our institutions must now follow suit. Universities should stop treating startups as side projects. Risk-taking must be recognized as intellectual courage, not just commercial appetite. And we must train scientists not just to publish, but to translate — from research to relevance, from theory to tools.

Policy as Enabler, Not Gatekeeper

When governments take innovation seriously, they don’t just fund research, they build ecosystems. Rwanda’s use of drones in healthcare, Estonia’s e-governance revolution, and India’s DPI success all show what happens when public architecture meets private ingenuity.

India offers a living case study. From digital IDs to frictionless payment systems, it has created the infrastructure for scale, a blueprint now being studied and replicated globally. And when states like Telangana pair this with agile execution, world-class incubators, and a pro-innovation mindset, entire regions are transformed into innovation hubs.

The Time to Build is Now

Entrepreneurship is the most powerful form of activism today. Every prototype, every platform, every product built for good, these are acts of defiance against despair. They say: we will not wait for the future. We will build it.

But to build bravely, young scientists must be backed boldly, with capital, with policy, with belief. When they win, we all win: economies grow, trust in science deepens, and lives are changed.

The bridge between discovery and dignity is innovation. And the next generation is already crossing it. Our job is to ensure they don’t walk alone.

17. Micron, Aequs SEZ Proposals Get Nod

ET, 10 Jun. 2025

The Board of Approval for special economic zones has approved the proposals of Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) to set up such zones for manufacturing of semiconductors and electronic components, the government said.

The approvals came after India eased regulations for semiconductor and electronics component manufacturing in SEZs on June 3, the commerce and industry ministry said.

Micron will establish its SEZ facility in Sanand, Gujarat over an area of 37.64 Ha with an estimated investment of ₹13,000 crore, while Aequs will establish its SEZ in Dharwad, Karnataka, over an 11.55 Ha area to manufacture electronics components with an estimated investment of ₹100 crore.

“Since manufacturing in these sectors is highly capital intensive, import dependent, and involves longer gestation periods before turning profitable, rule amendments have been carried out to promote pioneering investments and boost manufacturing in these high technology sectors,” the ministry said. After amendments in the SEZ Rules, 2006, an SEZ set up exclusively for the manufacturing of semiconductors or electronic components will require a minimum contiguous land area of only 10 hectares, reduced from the earlier requirement of 50 hectare.

The amendments also allow the Board of Approval for SEZs to relax the condition requiring SEZ land to be encumbrance-free in cases where it is mortgaged or leased to central or state government or their authorised agencies.

18. India sitting on 10,830 GW solar reserve—New study reveals massive untapped capacity

ET, 11 jun. 2025, Saurav Anand

India sitting on 10,830 GW solar reserve—New study reveals massive untapped capacity

NEW DELHI: What if India’s next energy revolution doesn’t come from deserts alone—but from rooftops, ponds, plantations, railway tracks, and even urban facades? A new reassessment by The Energy and Resources Institute (TERI) has unveiled that India is sitting on a massive solar reservoir of 10,830 GW, nearly 15 times the country’s earlier estimated potential of 748 GW.

The reassessment has been undertaken against the backdrop of India’s updated Nationally Determined Contributions, which call for a 45% reduction in emissions intensity by 2030 over 2005 levels and 50% of cumulative installed capacity from non-fossil energy resources by the same year. India’s net-zero target by 2070 further raises the importance of identifying scalable clean energy sources.

TERI projects that India’s electricity demand will exceed 5,000 TWh by 2050 and could rise to approximately 9,362 TWh—comparable to per capita levels currently seen in the European Union. In such a scenario, solar energy is expected to form the backbone of the non-fossil energy mix.

While the total theoretical solar potential is pegged at 10,830 GW, the report notes that realisable capacity will require micro-level assessments using GIS tools, remote sensing, and site-specific filters such as substation proximity, solar insolation, infrastructure access, and climate risk exposure. The study provides a macro-level map to guide future solar energy planning and investment in India.

For more news like this visit The Economic Times.

19. The Hidden Crisis: Poor-Quality Diagnostics in India's Healthcare System

ET Gov. 12 Jun. 2025

Diagnostics are not just support tools; they are central to effective healthcare delivery. Without timely, accurate testing, even the best clinical decisions can fail.

Ramesh, a 32-year-old construction worker, first visited his local clinic when he was having persistent cough and it refused to go away. For over two months, he had been suffering from coughing, recurring fever, and unexplained weight loss. The classic symptoms that should have raised red flags for tuberculosis.

But due to limited infrastructure and inadequate diagnostic support, his condition was misread as simple bronchitis. The technician, lacking proper training and resources, failed to spot early signs of TB. The doctor, relying on this flawed report, prescribed a general course of antibiotics and sent Ramesh home. Two more painful months passed. Ramesh’s condition worsened. His cough began producing blood, and severe fatigue left him unable to work.

This story reflects a deeper systemic failure of our country. Low-quality diagnostic services, often driven by under-resourced facilities, lack of quality checks, and poor training, lead to misdiagnosis, delayed treatment, worsening health, and higher healthcare costs.

Diagnostics Must Reach the Point of Care

In situations like Ramesh’s, the need is not for centralized, high-end laboratories but for accessible, quality-assured diagnostics at the point of care, especially for conditions like respiratory infections, diarrheal diseases, sexually transmitted infections, and chronic diseases like diabetes and kidney dysfunction.

Many of these tests do not require the National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditation. What’s crucial is to ensure standardised quality control for every batch of diagnostics and robust supply chains so that tests are accurate, affordable, and always available where they are needed most. Most of the syndrome-based approaches such as fever, STDs where the diagnostic should be available at a point of care with a quality check.

The cervical cancer diagnostics should be provided with appropriate quality checks, the same is with glucose levels, HB levels as well as basic diagnostics for lipids, kidney, liver tests. Point-of-care diagnostics for respiratory tract infections and diarrhoeal diseases must be made widely available, given the high mortality associated with these conditions. Just like medicines, every batch of diagnostic kits should undergo stringent quality checks and be supported by robust supply chain and storage systems.

Bridging the Gap Through Quality Checks and Training

Currently, many government hospitals and public health facilities function without NABL accreditation. This underscores the need to build a parallel grassroots-level accreditation system, modeled along the lines of National Accreditation Board for Hospitals & Healthcare Providers (NABH), but adapted to rural realities. Such a system would ensure minimum quality benchmarks, especially for program-related diagnostics and should be integrated into national health schemes including those under the Ayushman Bharat PM-JAY.

The lack of structured quality control has allowed an influx of unreliable diagnostic tools in both public and private sectors. Each diagnostic batch, like medicines, must undergo quality verification before deployment. This is especially critical for widespread conditions like cervical cancer, glucose imbalance, anemia (Hb levels), and liver/kidney dysfunction, where inaccurate results can lead to incorrect treatment or no treatment at all.

To ensure sustained quality, regular training and upskilling of lab technicians must be mandated. Training should focus not only on basic test operations but also on ethical diagnostic practices, quality assurance, storage standards, and the correct use of surveillance tools, which should never be substituted for clinical diagnostics.

Rural India: The Frontline of Diagnostic Inequity

According to the National Health Profile 2023, only 12% of primary health centers (PHCs) have diagnostic labs and many of those do not meet even basic standards. The result is a massive diagnostic gap in rural India, pushing patients toward unregulated, low-quality private labs. The consequences are severe: delayed or missed diagnoses, prolonged disease burden, high out-of-pocket costs, and ultimately, preventable deaths.

Strengthening National Diagnostic Infrastructure

While decentralised diagnostics are essential, India must also invest in national reference labs to support complex testing and surveillance. Establishing 50 NABL-accredited reference labs, each serving approximately 25 million people, would ensure comprehensive national coverage. These hubs should be equipped with AI-assisted digital microscopy, real-time PCR machines, and cloud-based data systems for seamless healthcare integration.

Public-private partnerships can be leveraged to train lab personnel at these reference centers, ensuring they are equipped with both theoretical knowledge and hands-on skills. Curriculum should emphasise AI tools, quality protocols, and patient-centric diagnostic delivery.

Diagnostics are not just support tools; they are central to effective healthcare delivery. Without timely, accurate testing, even the best clinical decisions can fail. As India aspires toward Universal Health Coverage and a USD 5 trillion economy, strengthening diagnostic services, particularly at the last mile, is not optional. It’s an urgent public health imperative.

(The author is Former Director General, Indian Council of Medical Research; Views expressed are personal)

20. STPI: Transforming India’s IT Landscape from ₹52 Crore to ₹10 Lakh Crore through Deep-Tech Innovation

ET Gov. 12 Jun. 2025

"Today, software exports from STPI-registered units alone exceed ₹10 lakh crore, with total exports crossing ₹19 lakh crore. STPI has played a pivotal role in shaping India's IT landscape—not as a regulator, but as a facilitator": Arvind Kumar, Director General of STPI.

In an era defined by digital disruption and deep-tech ambition, the Software Technology Parks of India (STPI) stands as one of the silent architects of India’s IT revolution.

From its modest beginnings in 1991 with just ₹52 crore in software exports, STPI has helped engineer an ecosystem through its STPI registered units now worth over ₹10 lakh crore—making India a global powerhouse in IT and ITeS. But STPI’s journey is far from over. As emerging technologies like AI, semiconductors, and quantum computing reshape global value chains, STPI is reinventing itself to catalyse the next wave of product innovation and startup growth—especially from India’s tier-II and III cities.

In this wide-ranging conversation with Anoop Verma, Editor-News, ETGovernment, Arvind Kumar, Director General of STPI, reflects on the organisation’s 34-year evolution, the shift from service-driven exports to deep-tech entrepreneurship, and why inclusive innovation, strategic incubation, and smart policy execution will define India’s digital future.

From Leap Ahead programs and Ananta Cloud to SAYUJ—the new networking platform for startups—Arvind Kumar outlines how STPI is building a bridge from legacy to leadership in the global tech ecosystem.

Edited Excerpts:

STPI recently completed 34 years. How do you reflect on this milestone?

It’s a moment of great pride. When we started our journey in 1991–92, India's software exports were merely ₹52 crore. Today, software exports from STPI-registered units alone exceed ₹10 lakh crore, with total exports crossing ₹19 lakh crore. STPI has played a pivotal role in shaping India's IT landscape—not as a regulator, but as a facilitator. Many industry veterans still recall starting their journeys from STPI premises, relying on our high-speed data connectivity. We earned the respect of the industry by operating professionally and responsively, much like a private enterprise.

What are the unique factors that have contributed to India’s phenomenal growth in software exports during this period?

India has always been service-oriented. The turning point came with the Y2K challenge—our engineers’ ability to understand and solve that global issue positioned India as a trusted service provider. While our IT/ITeS services exports have now touched nearly $224 billion, software products lag behind at about $17 billion, with product exports contributing roughly $12 billion. That gap is something we are actively trying to address through our startup and product innovation ecosystem.

How is STPI promoting software product development and startups?

STPI launches LEAP AHEAD initiative for startups to get access to investment, mentorship & global connect. STPI has expanded beyond its traditional role by establishing 24 domain-specific Centres of Entrepreneurship (CoEs) across the country. These are focused on areas like HealthTech (Lucknow), Blockchain (Gurugram), FinTech (Chennai & Gandhinagar), and more. We are currently supporting over 1,400 startups through incubation, seed funding, and mentorship. Many of them have generated IPRs and developed over 2,000 product innovations. Our aim is to build a strong, deep-tech-oriented startup ecosystem.

You talked about the Leap Ahead Program. What is its objective and how has it evolved?

Initially, we launched the “Building the Next Unicorn – Mission to USA” to give Indian startups international exposure. However, we learned that many were unprepared for global investor engagement. So we evolved the initiative into the Leap Ahead Program, which now offers 360-degree support—curated mentorship, pitch preparation, and finally, exposure to international investors, especially in Silicon Valley. Startups mentored under various programs of STPI including Leap Ahead have accessed nearly ₹600 crore in external funding, with just ₹43 crore seed support from STPI. That 14x leverage is a validation of our approach.

There’s been criticism that many Indian startups focus more on services than on core tech innovation. How is STPI addressing this?

It’s a valid observation. Early-stage startups often gravitate toward service aggregation models due to lower entry barriers and quicker returns. Deep tech, on the other hand, requires time, funding, and patience. The government’s new focus on AI, semiconductors, and advanced materials has boosted startup confidence. With long-term programs like CoEs and initiatives like Semicon India and the IndiaAI Mission, startups now see a clear path to develop core technologies. We already have 20+ deep-tech startups in our portfolio and expect that number to grow.

What is your vision for STPI over the next five years?

Our role has always been to facilitate industry growth. Initially, that meant providing high-speed connectivity and incubation space. Now, it means enabling cloud services, cybersecurity services, and advanced computing infrastructure. We’re offering services through Ananta Cloud (in Chennai and Bhubaneswar), five data centres, and SAYUJ—a digital platform that connects startups, mentors, and investors. We’re adapting constantly to meet the evolving needs of the tech industry.

Tell us more about SAYUJ. How does it help the startup ecosystem?

SAYUJ—meaning “together” in Sanskrit—is a networking and discovery platform. Startups, mentors, and investors can connect, share ideas, pitch products, and explore collaboration opportunities. It also aggregates state and central government policies—offering information on incubators, seed funds, global market access, and more. Soon, SAYUJ will also function as a job-matching portal. Already available as a web portal with over 5000 users, we’re launching its mobile app soon.

How do you assess the performance of STPI’s 67 centres, especially the 59 located in Tier II and III cities?

The idea behind these centres is inclusivity. Talent exists beyond metros, and we want to give local entrepreneurs access to world-class infrastructure. Centres in places like Bhagalpur, Koraput and Jajpur offer incubation at nominal costs. More importantly, all 67 centres are interconnected. A startup in Bhagalpur can access a lab in Bengaluru or mentorship from another STPI hub. This pan-India network gives them the benefits of a national ecosystem while working locally.

What’s the expected growth trajectory for India’s software exports in the coming years?

After the post-COVID boom, export growth has stabilized at 5–6%. The impact of AI on the software industry is still unfolding. While it could disrupt some service segments, it will also create opportunities in deep-tech development. For now, we anticipate steady, single-digit growth, with new technologies gradually shaping the next wave of exports.

How is STPI aligning with national tech missions like the IndiaAI Mission, Semiconductor Mission, and others?

We are fully aligned with the government’s vision. We’re planning a Centre of Excellence on semiconductors in Pune, in partnership with the Maharashtra government, and another on AI in Nagpur. While we don’t have a concrete plan for a quantum tech CoE yet, it’s on our radar. As government support for R&D intensifies across sectors, STPI will be a key enabler for startups working in these domains.

India and the World

21. Empowering India: Dr. Ashok Kumar Mittal on Education and Counterterrorism Strategy

ET Gov. 9 June 2025

In this wide-ranging conversation with Anoop Verma, Editor-News, ETGovernment, Dr. Ashok Kumar Mittal — Member of Parliament (Rajya Sabha) and Founder of Lovely Professional University (LPU) — recounts a remarkable journey that spans entrepreneurship, education, and public service.

From his early days managing his family’s iconic brand, Lovely Sweets, to building one of India’s most dynamic universities, and now shaping national discourse in Parliament, Dr. Mittal brings a rare blend of pragmatism and purpose to every role he assumes.

In this interview, he reflects on his recent participation in the all-party parliamentary delegation under Operation Sindoor, where he visited key European nations to present India’s counterterrorism stance. He also shares insights into LPU’s innovation-led education model, his institution’s transformative impact on students, and the scholarship initiative he has launched for India’s armed forces.

Speaking with conviction and clarity, Dr. Mittal discusses the promise of the National Education Policy 2020, the importance of execution over legislation, and India’s evolving role on the global stage. What emerges is the portrait of a leader who sees education not as a transaction but as a national duty — and who believes that transformation begins with giving young Indians not just degrees, but direction.

Edited Excerpts:

What is your assessment of Operation Sindoor? How did India approach the Pahalgam terror attack, and what steps were taken to ensure the response was both precise and principled?

The purpose of this delegation was to clarify India’s position after the Pahalgam terror attack, in which 26 Indian civilians were brutally killed. Pakistan was trying to project itself as the victim, claiming India had attacked it. The truth was very different. We had requested Pakistan and the United Nations to take action against the perpetrators. Even the UN condemned Pakistan on April 25, but no action was taken by the Pakistani government.

Left with no other choice, India executed a highly targeted and precise strike on nine terror camps, eliminating those responsible. No adjacent buildings or civilians were harmed. This level of precision shows the discipline and professionalism of our armed forces. Pakistan, feeling politically embarrassed and militarily countered, then attacked Indian territory, but again we responded decisively. On the 10th, they requested a ceasefire. We agreed—because India does not want war. We want development, growth, and peace. That is our philosophy.

As part of the all-party parliamentary delegation under Operation Sindoor, you visited several European countries following the Pahalgam terror attack. What was the key objective of this diplomatic mission, and how did global leaders respond to India's position?

The primary objective of Operation Sindoor’s diplomatic outreach was to correct the narrative that Pakistan was attempting to manipulate internationally after the Pahalgam terror attack. Pakistan was trying to position itself as a victim, while downplaying or obscuring its role in enabling cross-border terrorism. Unfortunately, due to their misinformation campaign, many international stakeholders had developed certain misconceptions about India’s actions.

Our delegation visited countries such as Russia, Greece, Slovenia, Latvia, and Spain with the purpose of conveying the truth — that India had acted with restraint, precision, and responsibility in its response to the brutal killing of 26 innocent civilians. We engaged with top political leaders, parliamentarians, think tanks, and senior officials, holding in-depth discussions to present factual accounts of the events.

The response we received was overwhelmingly positive. After hearing our perspective and reviewing the facts, these countries expressed a clear understanding of India's position. More importantly, they acknowledged that India’s fight against terrorism is not merely a regional concern, but a global imperative. Leaders from these nations assured us of their support on all key international platforms — including the United Nations and the European Union.

You also met Spain’s Foreign Minister José Manuel Albares. What insights did that meeting offer?

In Spain we had a meaningful and productive meeting with Foreign Minister José Manuel Albares. But beyond that, we met dignitaries at the highest levels in every country we visited—parliamentary leaders, ministers, former heads of government, think tanks, and media representatives.

Each engagement was thorough. In many countries, these discussions lasted an hour to an hour and a half, and they were interactive. We answered all questions and made our case with evidence and clarity. The change in perception was visible. People understood the truth, and the support we received was genuine.

Your journey from running Lovely Sweets to building LPU and becoming a Rajya Sabha MP is remarkable. How do you reflect on it?

"In Spain we had a meaningful and productive meeting with Foreign Minister José Manuel Albares": Dr. Ashok Kumar Mittal.

It has been an exciting and transformative journey. I started out in our family business—Lovely Sweets—which was established by my father. In fact, he created the famous Motichur Laddu in 1961. That was our beginning. From there, we diversified into automobiles with Bajaj and Maruti dealerships. Then in 2001, we made a shift to education, starting with a business school. By 2005, that had grown into Lovely Professional University.

In 2022, I entered the Rajya Sabha. Every phase of my life has taught me something new. Whether it was running a sweet shop, managing automobile dealerships, founding a university, or now working in Parliament—each experience has been enriching. I believe that constant learning and adapting is the key to meaningful service.

What inspired the transition from a local business to establishing a major university?

The idea was rooted in service. While our earlier businesses were successful, they were limited in scope. Education offered a way to impact lives at scale. And not just by providing degrees, but by truly building futures.

At LPU, our core principle is that education should lead to a career. Whether a student comes from a rural background or an urban one, whether they’re studying arts or technology, our focus is on ensuring they walk out of LPU with clear career prospects—either through a job, as an entrepreneur, or with access to further higher education.

Could you share some success stories from your students?

One student from Kurukshetra, who studied in a regional-language school, secured a placement with a package of ₹2.5 crore—a record in India. More than 1,700 of our students have received offers above ₹10 lakh per annum.

We’ve had students become successful entrepreneurs with major venture capital funding, others shine as artists and performers, and many represent India in sports. Neeraj Chopra, our alumnus, won an Olympic gold medal. Thirteen of our students participated in the Tokyo Olympics. Twenty-four LPU students represented India at the 2024 Paralympics and World University Games, winning multiple medals. We’re proud to say that LPU continues to contribute not just to careers but to national pride.

How does LPU ensure its students are job-ready and not just academically qualified?

Our education model is based on real-world outcomes. We have reimagined the entire delivery system. It’s based on three components: curriculum, delivery, and evaluation.

For example, a management student studying capital markets is given actual money—₹10,000 to ₹20,000—to invest. Over time, we evaluate how he or she grows that investment. This way, they learn practical skills in real-time. Marketing students are tasked with creating and selling real products. Media students are evaluated based on the reach and impact of their published articles or films.

Fifty percent of the curriculum is classroom-based. The remaining fifty is project-based, carried out in real-world settings. This balance ensures that our students don’t just learn theory—they live it.

What is your assessment of the National Education Policy 2020?

NEP 2020 is a very progressive and flexible policy. It has been designed with the right intent—to empower students and make them career-ready. It encourages institutional innovation and gives educators the freedom to experiment and adapt.

We’ve already adopted several elements of NEP in our model. But the true success of NEP depends on how creatively and passionately institutions implement it. The policy gives the framework, but execution depends on us. If followed in its spirit, NEP can position India as a global leader in education.

You’ve raised over 250 questions in Parliament on a range of issues. In your view, does India need more legislation to address these challenges, or is the problem rooted elsewhere?

I don’t believe the solution lies in passing more laws. In fact, we already have an abundance of legislation in place. The real issue is not the quantity of laws, but the quality of their execution. More laws often mean more complexity and more litigation. What we truly need is fewer but better-enforced laws—implemented not just in letter, but in spirit.

Every law has two sides. It’s the interpretation and intent behind its execution that determine whether it serves the nation or creates further roadblocks. That’s why I firmly believe that many of our national challenges—whether it’s unemployment, corruption, or population pressure—cannot be solved by legislation alone. The deeper solution lies in education.

If we can deliver education that achieves three things—builds meaningful careers, fosters a sense of patriotism, and instills social responsibility—we will see transformative results. A well-educated society doesn’t just follow the law; it internalizes values that make enforcement less necessary. Ultimately, mindset transformation through quality, purpose-driven education is the most sustainable path to national progress.

There’s a demand for more quality higher education institutions. Do you support the entry of foreign universities into India?

Foreign universities can bring new pedagogical methods, research excellence, and global exposure. Of course, we must ensure that core Indian values like patriotism are embedded through our own school system.

But we mustn’t resist learning from those who are ahead in certain areas. Just like international companies helped India develop in sectors like automobiles and telecom, foreign universities can contribute positively to our education ecosystem.

Considering global uncertainty, what role do you see India playing internationally in education, technology, and counterterrorism?

India is rapidly emerging as a global voice. Our economy is growing, our youth population is vibrant, and our global engagement is increasing. Other nations, particularly in the West, are showing signs of complacency—working fewer hours and growing content with what they have. India, on the other hand, is driven, focused, and capable of sustained growth.

We can be global leaders in education, innovation, and the fight against terrorism. But we must continue focusing on quality governance, population control, and corruption-free systems. If we achieve that, nothing can stop India’s rise.

You recently announced a full scholarship initiative for India’s armed forces personnel. Can you tell us more about it?

This initiative is very close to my heart. In honour of the 22 lakh officers and jawans of the Indian Armed Forces and paramilitary forces we are offering them 100% scholarships for online undergraduate and postgraduate degree programs.

These programs are fully online, so soldiers and officers can study from their duty locations. Whether it’s a B.A., B.Com., BCA, or MBA—there is no tuition fee. The idea is to provide a small tribute to their sacrifice and empower them with education that they can pursue without compromising their service.

The response so far has been overwhelming. We’ve received many enrolments, and we’re expanding our systems to accommodate more.

22. Empowering Multilingual Classrooms: A New Era of Education in India

ET Gov. 12 Jun. 2025

There are few sights more heartening than that of a young child lighting up as they speak or write their first words in the language of their home.

“Language is not just a medium of communication but a carrier of culture.” —Prime Minister Narendra Modi at the 98th Akhil Bharatiya Marathi Sahitya Sammelan

There are few sights more heartening than that of a young child lighting up as they speak or write their first words in the language of their home. It is not just an educational milestone—it is an emotional moment, a reaffirmation of identity, and the spark of confident self-expression.

As India embarks on a transformative journey in education, the renewed emphasis on multilingualism—firmly embedded in the National Education Policy (NEP) 2020 and advanced through the National Curriculum Framework for School Education (NCF-SE) 2023—offers a timely and visionary direction for inclusive, meaningful learning. The message is clear: let the language of the classroom reflect the language of the child’s world.

At the recent Consultative Committee of Parliament for the Ministry of Education, held on 6th June in Indore, Hon’ble Education Minister Shri Dharmendra Pradhan Ji reiterated the government’s stance, emphasizing that no language is being imposed on any state. He referenced NEP 2020’s guiding framework, which states:

“The three-language formula will continue to be implemented while keeping in mind the Constitutional provisions, aspirations of the people, regions, and the Union, and the need to promote multilingualism as well as promote national unity… no language will be imposed on any State… so long as at least two of the three languages are native to India.”

— NEP 2020, Paragraph 4.13

This assurance is vital in a diverse country like India, where language is closely tied to identity, emotion, and heritage. For too long, children in Indian classrooms have been expected to learn in unfamiliar tongues, disconnected from their lived realities. The result? A disconnect that hampers comprehension, confidence, and creativity. The reimagined three-language formula is a long-overdue correction. It recognizes that children learn best in the languages they understand—particularly in their formative years—and that India’s linguistic diversity is not a challenge to be managed but a treasure to be embraced.

This multilingual commitment isn’t new. It was first envisioned in the Kothari Commission (1964–66), which proposed a three-language approach to balance national unity with regional pride. NEP 2020 builds on this vision, calling for the home or local language to be the medium of instruction at least until Grade 5, preferably till Grade 8 and beyond. At the same time, it introduces flexibility—States, regions, and learners have the autonomy to choose their languages, as long as two of them are Indian. The goal is not homogenization, but inclusion.

This shift is not just theoretical. It is being brought to life through initiatives like Jaadui Pitara, a vibrant, play-based multilingual learning kit for early learners. Packed with stories, songs, puzzles, and games in multiple Indian languages, it engages children in culturally grounded, joyful learning. When children hear and see their mother tongue in school materials, it validates their world. As one early childhood expert noted, “When a child learns in his or her mother tongue, their eyes light up while expressing their first alphabets in the language spoken at home. They blossom in all domains of development and are able to better express themselves in their own words.”

The foundation of this approach is deeply rooted in educational theory. Vygotsky’s sociocultural theory emphasizes that language is the medium through which thought develops. Cummins’ interdependence hypothesis supports the idea that a strong base in one’s mother tongue facilitates learning of additional languages. Indian pedagogue Gijubhai Badheka championed the use of mother tongue in education nearly a century ago, promoting storytelling, music, and native-language interaction as vital for child development. Together, these philosophies reinforce what India is now institutionalizing: a classroom that affirms the child’s identity is a classroom that accelerates learning.

In alignment with this national vision, the CBSE has issued a circular calling on all affiliated schools to implement the multilingual goals of NCF 2023. Schools must begin by mapping students’ home languages and ensuring that foundational instruction is delivered in familiar tongues. This is not just a curriculum update—it is a shift in the soul of our classrooms. A classroom that speaks a child’s language is one that listens, includes, and empowers.

At the National Council for Teacher Education (NCTE), we understand that multilingual education is only possible with multilingual educators. That’s why the Four-Year Integrated Teacher Education Programme (ITEP) now includes focused modules on translanguaging, code-switching, contextual language use, and the pedagogy of multilingual teaching. Student-teachers are required to study a minimum of two languages—selected from classical, modern Indian, and foreign language offerings—to equip them for today’s diverse classrooms.

Simultaneously, through the National Institute of Open Schooling (NIOS), we are expanding access to language learning. At the secondary level, students can study in 14 mediums of instruction and study 20 languages. At the senior secondary level, learners can access 8 mediums of instruction and study 14 languages—a model of flexibility and inclusion that reflects the spirit of the NEP.

Language, ultimately, is not a barrier—it is a bridge. And when that bridge begins with the child’s first word, it can carry them a lifetime forward.

(The author is Chairperson, NCTE; Views expressed are personal)

23. Tata Electronics sends hundreds to Taiwan for training ahead of India's first AI-enabled fab: Report

India Blooms News Service, 12 June 2025

New Delhi, June 11 -- Tata Electronics is accelerating its semiconductor ambitions by sending hundreds of employees to Taiwan for training as groundwork intensifies for its Rs.91,000 crore fabrication (fab) unit in Dholera and Rs.27,000 crore OSAT (outsourced semiconductor assembly and test) facility in Assam, sources told ET.

24. US Trade Pact Set for Early Finish: Piyush Goyal

ET, 14 Jun. 2025

India and the US are on track to seal a trade agreement before the deadline of fall 2025 set by PM Narendra Modi and President Donald Trump, commerce and industry minister Piyush Goyal told Deepshikha Sikarwar in an interview. Goyal, who is on a four-day visit to Switzerland and Sweden, said the rare earth magnet supply squeeze by China is a wake-up call. Edited excerpts:

Trade has now acquired a geopolitical dimension. How can India secure its interests?

Today, India is sitting on the high table. We have free trade agreements (FTAs) with most developed nations—Japan and Korea, Australia, UAE, the four EFTA (European Free Trade Association) countries. The FTA with the UK has already closed. We are in active dialogue with the US for a bilateral trade agreement, with the European Union for a free trade agreement… with Peru, Chile, and Oman. The entire world recognises India’s growing strength.

The world recognises the decisive leadership Prime Minister Modi brings to the table and the opportunity of associating with the fastest growing large economy, which is expected to grow from $4 trillion to $5 trillion. It’s a perfect opportunity. And, I think, no country would like to miss it.

India is in talks for multiple FTAs, some with advanced economies. How is the government preparing Indian industry to ensure that they can take advantage of these agreements? Also, are there policy interventions that are required to help them do so?

For the last 11 years of the Modi government, focus has been on ease of doing business, deregulating the economy, making it less difficult to meet regulatory compliances, and decriminalising our laws. He launched Make in India to encourage investments in the manufacturing sector. We have created a framework within the country with strong macroeconomic fundamentals. The government is ensuring that demand in the country remains robust and grows so that investors from around the world feel interested in working in India. I think the perfect foundation has been laid. Now, with these free trade agreements, continuity, stability and predictability of policy will be available for our industry in advanced and developed economies, which is important for investment or business.

A case in point is the global capability centres (GCCs). During Covid, the nimbleness with which Prime Minister Modi adapted policy to ensure continuity of business earned India the tag of a trusted partner. All the work that people realised could be done working from home can also be done working from India. That's opened up a plethora of opportunities in terms of jobs. Millions of Indians are now working in GCCs. They're earning us billions of dollars of foreign exchange, adding to our construction and real estate ecosystem, providing tertiary jobs. Nearly 2,000 of them are in India today.

Where are we on the US trade agreement and is the baseline 10% tariff a sticking point?

We don’t negotiate through the press. We negotiate on the negotiating table.

When can we expect the deal to come through?

We (US and India) are both committed to a bilateral trade agreement. Our leaders have set a task of completing the BTA by fall 2025. We are well on track to complete it before that.

Supply chains are facing new challenges. The rare earth magnet issue has again brought into focus the issue of secure supply chains. What is India planning to do to ring-fence its industry?

It is a wake-up call not just for Indian businesses but for businesses around the world. And this wake-up call will help all supply chains to reassess their resilience and their dependability on certain geographies. This will prompt them to look for trusted partners. For India, while we may have a problem with permanent magnets in the short run, we are already engaged with industry and with our startup ecosystem to find solutions. Even during the course of my stay in Switzerland, we discussed with some companies how they are coming around to address this problem. And I assure you that we are solving this problem. But this wake-up call will help people reassess the resilience of their supply chains and surely attract business to India.

IT services exports have helped make up the goods trade deficit. Is AI a threat to our services exports?

Certainly, some work and jobs will get impacted by AI. We cannot deny that. But we cannot cry over that, we have to find solutions. We have to adopt AI. We have to learn and retrain our people to be able to engage with AI. We have to leverage AI to our advantage so that instead of the current work that we are doing, we’ll probably do even higher value-added work. At the end of the day, I believe the human mind is always supreme, because AI is largely dependent on what you feed into the system. I think there will be a rejig in the way work is done. There will be a need to retrain and reskill our people, but end of the day, I can assure you, India will come out the winner even in this.

The budget had announced an export promotion mission. How soon is it likely to be unveiled?

We have already worked out the areas which will be the focus of the available resources with the ministry. The effort is to promote new exporters, look at new markets and new products. The budget and the resources will help, particularly our MSME sector, our job generating sectors, our farmers, and to expand in the international markets.

25. Global Shocks won’t Alter Our Plans for India: Masahiro Kihara

ET, 13 Jun. 2025

India’s demographic advantages, GDP expansion and opportunity to broaden exports make it an important growth engine for Mizuho Financial Group, says Masahiro Kihara, chief executive of Japan’s third-largest megabank with $1.9 trillion in assets. The group is constantly evaluating opportunities for investment and lending in India, and plans to double the headcount at its global capability centre here, he tells Joel Rebello and Sangita Mehta.

Edited excerpts:

What is driving Japanese interest in India?

The future of India is very promising. From a demographic perspective, you have a lot of advantages. Besides wages, the working age population is still increasing, which is totally opposite from Japan. You have a stable democratic framework with robust digital infra. And beyond that you are inducing people to come and make in India (with) start-up India, production-based incentives and so on. The Japanese are looking for areas where they can grow. So, India is a very promising area. Also, Japan and India have a long-standing relationship sharing the same values, having sympathy towards each other. So, that gives Japanese companies confidence to invest here.

Where does India fit into Mizuho’s plans?

There are 1,400 Japanese companies operating here and we bank with many of them. Many of these want to expand here. But there is also interest among Japanese companies to come here for the first time.

We want to be supportive of the growth of Indian and Japanese companies. Also, we want to commit to the growth of India because both countries have been friends for many years. So, for us, India is a very important country. In November 2023, we increased our capital base to $500 million, so that our Indian operation can extend more lending.

Are you likely to make more investments in India?

I think at some point, we probably will need additional capital to inject here. And I'm happy to do that if there’s a need for that.

What would be the trigger for you to inject more capital?

We have (invested) $500 million and based on the needs that we get from our customers I think it’s sufficient right now. But as this country grows, I guess there will be much more for companies asking for lending.

Any acquisitions that you’re looking at in India?

First of all, in terms of organic, we focus on five business areas: Japanese retail; asset management and wealth management in Japan; Japanese corporates; global corporate investment banking and sustainability. We are constantly looking at opportunities in these areas. So, I can’t allude to what will happen in India.

There have been reports about Mizuho acquiring a majority stake in Avendus Capital. What is the status?

I can’t allude to that. No comments.

Will corporate banking continue to be your focus in India?

We are particularly very good at corporate wholesale banking. In the global space, I think we should stick to wholesale banking because regional retail banking is very difficult. Wholesale banking is the area where we have expertise, we have strength.

Given the global uncertainties in terms of rates, markets, trade and political tensions, what is your view on growth?

Of course, there’s a lot of uncertainties but at some point things will get clear. Then everybody will start adjusting to a new world order. So, I would say given that there's uncertainty from a global perspective, the activity might be slow. But once things get clear, activity will come back.

Does it change the way you invest in India or will you have to relook at your plans here?

I think India is a little bit insulated from all these things. I would say that India is a bit of a different story. Very different from Japan. So, we won’t change what we were going to do in India.

What would be the impact of the US tariff war on India?

The effect on India is probably minimal. You might even benefit from production moving into India from other countries, given the fact that maybe the tariff rate is lower than the other countries. What is happening is that corporations are thinking of diversifying their supply chain from a stability perspective. Everybody is thinking about moving into areas that have growth potential. So, India is in a good position from that perspective.

What advantages do you think India has over China?

In the long run, the working age population, I think that’s the most important part. For India it is going to grow. China is going to decrease. That’s a big advantage.

What are your plans on the global capability centre in India?

We have around 600 people and we want to double that in two or three years and move in more and more operations here in India because India has a talent pool.

Which are the sectors you're very optimistic about?

In India there is ambition to grow in manufacturing from auto electronics, semiconductors and infrastructure. Increasingly, when the per capita (income) goes up, there should be increasing demand for retail too. India is constructing airports, highways, railroads. We have done many projects in the infrastructure sector. We have also beefed up the project finance team recently.

The top 3 Japanese banks are here in India with deep pockets. How would you differentiate between yourselves and them?

We at Mizuho are very good at industry research. We have a very strong global corporate and investment banking franchise, developed from 2015 when we purchased assets from RBS and onboarded 100 relationship managers. We want to integrate every capability that we need in the investment bank inside our bank, to get synergies between those capabilities. Based on these strengths, we'll try to bring all these capabilities into India too, and I think we can be competitive on them.

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