BUSINESS LEADERS WHO GENERATED VALUE FOR THEIR COMPANIES AND SHAREHOLDERS IN A CHALLENGING ECONOMIC ENVIRONMENT KESHUB MAHINDRA: A TRIBUTE MOST VALUABLE CEOs Rs 150 www.businessworld.in RNI NO. 39847/81 I 06 MAY 2023 (L-R) Top row: Ravi Chawla, Gulf Oil Lubricants India; Vibha Padalkar, HDFC Life; Rakesh Khanna, Orient Electric. Second row: Siddharth Mittal, Biocon; Pradip Kumar Todi, Lux Industries; Shrikant M. Vaidya, IOC. Third row: Hitesh Oberoi, Info Edge; Sanjiv Lal, Rallis India; Thierry Delaporte, Wipro; Sunil D’Souza, Tata Consumer Products. Fourth row: T.V. Narendran, TSLP; Murali K. Divi, Divi’s Laboratories; Mohit Malhotra, Dabur India. Fifth row: Amitava Mukherjee, NMDC; Balfour Manuel, Blue Dart; C.K. Venkataraman, Titan Company; D.K. Khara, SBI. Bottom row: M.R. Jyothy, Jyothy Labs; Chacko Purackal Thomas, Tata Coffee; Mithun Chittilappilly, V-Guard Industries; Suresh Narayanan, Nestle India
4 | BW BUSINESSWORLD | 06 May 2023 “The great differentiator in business is when an organisation steps out and creates value for something never tried before.” – Kerry Baskins Dear reader, After having overtaken China, India is now the most populous nation in the world. The fastest growing large economy, the “bright spot” in the world, and now heading G20 presidency, India is always a major talking point at international fora. With an impressive economic report-card, and ambitious developmental targets, India will have a high percentage of working-age population at least for the next two decades. While many high-income economies have greying population, and China’s working population, too, declining, India’s unique demographic dividend must be harnessed to its fullest. This will ensure that while India makes rapid economic strides, it also exports skilled workforce to all over the world. The skilled workforce has a direct bearing on the economy. Talking about the economy, industry leader Rashesh Shah, in the last issue of BW Businessworld, talked about India’s “The Quadruple Balance Sheet Advantage”. This is also reflected in the corporate balance sheets. After our annual specials, around BW 500 and Most Respected Companies, in the current issue of BW Businessworld, we showcase the outstanding CEOs who braved various odds to emerge victors and came to be known as our “Most Valuable CEOs”. They generated exceptional value for their shareholders and investors. Our knowledge partner TechSci Research helped us zero in on the list. Modern-day managers leading corporates are often asked to “multitask”. This, however, remains a contentious issue. Does “multitasking” actually improve efficiency and productivity? Or, is it actually a misnomer? We posed this question to Chairman, EAC-PM, Bibek Debroy, also a prolific author, columnist, translator and speaker. You will find his views in the “Last Word” column interesting. We lost industry patriarch Keshub Mahindra recently. He inspired many and touched multiple lives. We pay our tributes to him. In this issue of BW Businessworld, Tarun Das writes a column, capturing the multi-faceted personality that Mahindra was. This issue of BW Businessworld has all other features and columns that you look forward to. Do keep sending your feedback. Happy reading! ANNURAG BATRA [email protected] WHEN CEOs LEAD FROM THE FRONT EDITOR-IN-CHIEF’S NOTE
6 | B W BUSINESSWORLD | 06 May 2023 BW Businessworld does not accept responsibility for returning unsolicited manuscripts and photographs. All unsolicited material should be accompanied by self-addressed envelopes and sufficient postage. Published and printed by Annurag Batra for and on behalf of the owners, BW Businessworld Media Private Limited. Published at 74-75, Scindia House, Connaught Place, New Delhi-110001, and printed at Infinity Advertising Services Private Limited. Editor : Annurag Batra. © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved. R.N.I.No. 39847/81 BW Businessworld Media Private Limited EDITORIAL OFFICES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 ADVERTISEMENT/CIRCULATION / SUBSCRIPTION ENQUIRIES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 SUBSCRIPTION SERVICE Vinod Kumar +91 9810961195, [email protected], [email protected] Subscription rates: ONE YEAR - Rs 2,899 TWO YEARS - Rs 5,599 THREE YEARS - Rs 8,199 HUMAN RESOURCES: Namrata Tripathi ([email protected]) LEGAL ADVISOR: Sudhir Mishra (Trust Legal) GROUP CHAIRMAN & EDITOR-IN-CHIEF: Dr. ANNURAG BATRA CEO, BW COMMUNITIES Bhuvanesh Khanna CEO & CHIEF INNOVATION OFFICER Hoshie Ghaswalla (CEO-BW Engage) GROUP EDITORIAL DIRECTOR Noor Fathima Warsia EXECUTIVE EDITOR: Suman K. Jha EDITORIAL TEAM Sr. Associate Editors: Ashish Sinha, Jyotsna Sharma, Meha Mathur Assistant Editor:Tarannum Manjul Sr. Correspondents: Rohit Chintapali, Deep Majumdar Correspondents: Abhishek Sharma, Arjun Yadav Trainee Journalists: Sneha Patro DESK TEAM Deputy Editor: Mukul Rai Associate Editors: Madhumita Chakraborty; Smita Kulshreshth ART TEAM Art Directors: Dinesh Banduni, Shiv Kumar, Shivaji Sengupta Assistant Art Director: Rajinder Kumar Infographics & Data Visualiser: Arun Kumar Assistant Images Editor: Sanjay Jakhmola PHOTO TEAM Sr. Photo Researcher: Kamal Kumar BW ONLINE: Assistant Editor: Poonam Singh VIDEO EDITORIAL TEAM Video Team: Anurag Giri, Pappu Kumar Singh, Sunny Kumar Paswan Sr. Cameraperson: Ratneshwar Kumar Singh BW APPLAUSE & EVERYTHING EXPERIENTIAL: Ruhail Amin BW AUTO WORLD: Utkarsh Agarwal BW ESG & BW CFO WORLD: Urvi Shrivastav BW CIO WORLD: Ratnadeep Chaudhary BW DISRUPT: Resham Suhail BW EDUCATION: Vasudha Mukherjee, Upasana BW HEALTHCARE WORLD: Smridhi Sharma, Shivam Tyagi BW HOTELIER: Editor: Saurabh Tankha Editorial Lead: Bulbul Dhawan Operations Controller: Ajith Kumar LR BW LEGAL WORLD: Editorial Lead: Krishnendra Joshi BW MARKETING WORLD: Soumya Sehgal BW PEOPLE: Sugandh Bahl BW WELLBEING: Kavi Bhandari VC WORLD: Anisha Aditya GROUP EDITORIAL HEAD: Vishal Thapar (BW Defence, BW Securityworld & BW Policeworld) Community Lead: Shilpa Chandel BW POLICE WORLD: Ujjawala Nayudu DIRECTOR: Prasar Sharma GROUP SR. VICE PRESIDENT - STRATEGY, OPERATIONS & MARKETING Tanvie Ahuja ([email protected]) CEO, BW HEALTHCARE WORLD & BW WELLBEING WORLD: Harbinder Narula DIRECTOR, ADVERTISING & REVENUE: Aparna Sengupta DIRECTOR, PROJECTS & COMMUNITIES: Talees Rizvi VICE PRESIDENT: Mohit Chopra VICE PRESIDENT STRATEGIC PROJECTS: Uday Laroia MARKETING & DESIGN TEAM: Prerna Singh Rathore, Kartikay Koomar, Mohd. Salman Ali, Moksha Khimasiya, Shweta Boyal, Alka Rawat, Arti Chhipa, Sunny Anand Asst Manager - Design: Kuldeep Kumar EVENTS TEAM: Rekha Rawat, Tarun Ahuja, Devika Kundu Sengupta, Preksha Jain, Akash Kumar Pandey, Mohd. Arshad Reza, Sneha Sinha, Ashish Kumar, Nandni Sharma, Mahek Surti, Reeti Gupta, Atul Joshi, Mir Salika, Preeti Tandon, Biren Singho, Abhishek Verma, Neeraj Verma, Sushmita Kumari, Prashant Kumar, Mayank Kumar SALES TEAM NORTH: Ravi Khatri, Anjeet Trivedi, Rajeev Chauhan, Amit Bhasin, Somyajit Sengupta, Priyanshi Khandelwal, Sajjad Mohammad WEST: Kiran Dedhia, Nilesh Argekar SOUTH: C S Rajaraman BW COMMUNITIES BUSINESS LEADS Priya Saraf (BW Education), Gareema Ahuja (BW LegalWorld), Chetan Mehra (BW Disrupt) CIRCULATION TEAM General Manager - Circulation, Subscription & Sales: Vinod Kumar ([email protected]) NORTH-EAST: Shiv Singh, Mukhtadir Malik, Kamlesh Prasad WEST: Arvind Patil, Gorakshanath Sanap SOUTH: Sarvothama Nayak K FINANCE TEAM Ankit Kumar, Ishwar Sharma, Shrikant Sharma, Vijay Jangra IT SUPPORT: Brijender Wahal ADMIN SUPPORT: Assistant to Chairman & Editor-in-Chief: Aman Mishra ([email protected]) VOL. 42, ISSUE 14 06 MAY 2023
Closing Date: May 02, 2023 Block your pages... Summer of '23 A look at how an unpredictable summer is impacting summer categories Industry captains on their plans and targets to make the most of summer Exclusive insights from GfK on what summer sales look like, setting the pace for di erent consumer durable categories this year Insightful Features & Interviews Exclusive Columns from Industry Leaders Young Entrepreneurs and Enterprises that are beating the odds in a tough year First hand accounts of young leaders' winning mantras Special Issue Highlights Ensure Your Brand’s Presence in this Special Issue!!! Ms. Aparna Sengupta, [email protected], +91 9958000128 Mr. Anjeet Trivedi, [email protected], +91 9818122217 Mr. Ravi Khatri, [email protected], +91 9891315715 Mr. CS Rajaraman, [email protected], +91 9342262859 Mr. Somyajit Sengupta, [email protected], +91 9818247444 Mr. Kiran Dedhia, [email protected], +91 9833399009 Mr. Sajjad Mohmmad, [email protected], +91 9911855935 For Editorial: Ms. Noor Fathima Warsia, [email protected] Special: Young Entrepreneurs & Enterprises
8 | B W BUSINESSWORLD | 06 May 2023 MAILBOX YOUR COMMENTS TALK BACK Top international lawyer John Quinn on what foreign law firms can learn from India www.businessworld.in Inside: India’s Tech Resilience Interview: Rashesh Shah Chairman, Edelweiss Group G20 Sherpa, AmitabhKant Rs 150 INDIA INC’S G20 OPPORTUNITY India’s G20 Presidency is an opportunity to scale up, expand, apart from positioning the country as a top investment hub G20 Sherpa, India Amitabh Kant RNI NO. 39847/81 I 22 APRIL 2023 NEW INNOVATIVE SOLUTIONS This refers to the editorial (“Indian IT Continues To Shine Bright”, BW, April 22). The author rightly points out that the last two years have showed how the Indian tech sector rapidly innovated to win the trust and confidence of its clients. From hybrid operating models, to bringing out new innovative solutions to using newer means of collaboration, the Indian IT sector pulled off all its aces to deliver value and record excellent growth. It is indeed good to know that today, even as the global economies face challenges of recession, it only improves the probability of more work coming to Indian IT firms due to India’s traditional advantages of cost, quality and availability of skilled talent. To its credit, the Indian IT industry has consistently innovated by investing in processes and emerging technologies that could help it maintain its strategic advantage in the marketplace. PRIYANKA SOOD, EMAIL MOVING FROM 2D EXPERIENCE TO 3D This refers to the editorial (“Where Real Meets Virtual”, BW, April 22). The article makes for an interesting read, to say the least. The author highlights the fact that in the new world called the metaverse, users will be moving from 2D experience to 3D, represented by their avatars, which will allow them to interact with the world at large. They will have freedom to do things which they do offline or in the real world, but with an added advantage of being able to do that in a much more interactive, realtime way. You could be going to a bank, watching the future T20 World Cup matches in the stadium, learning new skills and more. All this while sitting on the couch at home! Well, users of the metaverse have a lot to look forward to. ASHUTOSH RIDHORKAR, EMAIL BLIPP THIS PAGE TO GIVE US YOUR FEEDBACK INSTANTLY Submissions to BW |Businessworld should include the writer’s name and address and be sent by email to the editor at [email protected] or by mail to 74-75, Scindia House, Connaught Place, New Delhi-110001
10 | BW BUSINESSWORLD | 06 May 2023 Cover design by SHIV KUMAR 12 Jottings Good governance-led policymaking; India’s population advantage; Enhancing regional air connectivity; Steel exporters face CBAM challenge, and more 16 Columns Minhaz Merchant (p. 16); Vikas Singh (p. 18); Srinath Sridharan & Steve Correa (p. 20); Amit Tiwari (p. 22); Krishan Kalra (p. 26); Jayesh Shah (p. 30); Aruna Sharma (p. 32); Aruna Sharma (p. 38); Srinath Sridharan & Shailesh Haribhakti (p. 42); Prabal Roy Basu (p. 50); Anu Sehgal (p. 88) 29Interview Aditi Maheshwari, CEO, Vani Prakashan, on the pivotal role the publishing group is playing in bringing out the best books across genres 44 A Matter of Trust Do you know that Indians have the greatest trust in their government? Or that tech companies, banking and the energy sectors are also more trusted in India than elsewhere? Read the findings of an Ipsos survey to know more such things 48 In Memoriam Tarun Das, the former Director General of the Confederation of Indian Industry, remembers the late Keshub Mahindra of the Mahindra Group as someone who believed businesses had a duty to be involved in the country’s development Leaders With The Midas Touch Business leaders who generated value for their shareholders and companies in a tough economic environment 52 MOST VALUABLE CEOs Photograph by Serge y Nivens CONTENTS VOLUME 42, ISSUE 14 06 MAY 2023
06 May 2023 | B W BUSINESSWORLD | 11 The pages in BW Businessworld that are labelled BWi or Promotions contain sponsored content. They are entirely generated by an advertiser or the marketing department of BW Businessworld. Also, the inserts being distributed along with some copies of the magazine are advertorials /advertisements. These pages should not be confused with BW Businessworld’s editorial content. TOTAL NO. OF PAGES INCLUDING COVER 108 MOST VALUABLE CEOs 56 D.K. Khara, State Bank of India 58 C.K. Venkataraman, Titan Company 60 Sunil D’Souza, Tata Consumer Products 62 Murli K. Divi, Divi’s Laboratories 64 Rakesh Khanna, Orient Electric 66 T.V. Narendran, Tata Steel Long Products 68 Pradip Kumar Todi, Lux Industries 70 Chacko P. Thomas, Tata Coffee 72 Amitava Mukherjee, NMDC 74 Shrikant M. Vaidya, Indian Oil Corporation 76 Thierry Delaporte, Wipro 77 Vibha Padalkar, HDFC Life 78 Mohit Malhotra, Dabur India 80 Siddharth Mittal, Biocon 81 Suresh Narayanan, Nestle India 82 Balfour Manuel, Blue Dart 83 Mithun Chittilappilly, V-Guard Industries 84 Sanjiv Lal, Rallis India 85 Hitesh Oberoi, Info Edge India 86 MR Jyothy, Jyothy Labs 87 Ravi Chawla, Gulf Oil Lubricants India 90 In Conversation Ramakant Dwivedi on his new book Indo-Kyrgyz Relations Challenges & Opportunities, the need for greater economic engagement with the Central Asian region despite geographical inaccessibility, and more 100 Future of Wellbeing A peak into the second edition of the Festival of Wellbeing organised recently by BW Wellbeing World in Mumbai, the guests and experts who participated in the event and what they said about wellbeing, physical fitness, spiritual wellness, etc. 104 Interview Ritu Maheshwari, CEO of Greater Noida Authority and Greater Noida Industrial Development Authority on her plans to reimagine Noida and Greater Noida as global commercial hubs 106 Last Word Bibek Debroy, Chairman, Economic Advisory Council to the Prime Minister, as well as a prolific writer and speaker, on what multitasking means to him and how he manages his own time 92 Future of Design A round-up of the Future of Design event organised recently by BW Businessworld and the key questions it sought to discuss such as whether design should be aesthetically pleasing, functional or sustainable, what is good design, where it is headed, etc. Photograph by Himanshu Kumar Photograph by McLittle /Canva
12 | BW BUSINESSWORLD | 06 May 2023 JOTTINGS INDIA IS THE WORLD’S most populous nation. Or, it would be so, by July 1. So says the United Nations. By July 1, 2023, India’s 142.9 crore population would be 29.6 lakh more than China’s. What is the most significant point of this shift is that unlike many developed countries and high-income economies, India will have a high population of young countrymen, blessing it with what is commonly known as “demographic dividend”. India will continue to enjoy this demographic dividend roughly for the next 25 years. As India aspires to be a high-income economy by 2047, its young population would have a very important role in making this happen. This makes employment and self-employment opportunities for the working population extremely crucial. When compared with China, which has a greying population, even if its economy is many times bigger, India’s young India’s Population Advantage Photograph by PMO/PIB GOOD GOVERNANCELED POLICYMAKING I NDIA’S ECONOMIC accomplishments came in for a special mention in Prime Minister Narendra Modi’s recent address on the occasion of Civil Services Day in the national capital. The PM said that India is rising as the 5th largest economy in the world, as he talked about India taking strides in fintech (number one in digital transactions). Data available to Indian consumer is the cheapest. India is the third largest startup ecosystem in the world. With Vision 2047 already as the guiding principle for policymaking, the PM also referred to District Visions@100 that are under preparation and said that such visions should be prepared up to panchayat levels. “What sectors should be focused in the panchayats, blocks, district and the state, changes for attracting investment and identification of products that can be taken up for exports, a clear vision for all this should be developed,” the PM said. — TEAM BW population will be its asset in its rise and its onward march. Looked from another perspective, India’s vast population is also a huge market – making it an attractive destination for investors and businesses. — TEAM BW Photograph by Indiapicturebudget
06 May 2023 | B W BUSINESSWORLD | 13 Photograph by PIB Photograph by Aoo3771 THE CIVIL AVIATION MINISTRY has launched the fifth round of the Regional Connectivity Scheme (RCS) under UDAN to improve air connectivity to remote and regional areas. The new version aims to connect new routes and operationalise 1,000 routes and 50 additional airports, heliports, and water aerodromes. The UDAN 5.0 initiative has increased the viability gap funding cap to 600 km for both priority and non-priority areas, and airlines can propose network and individual routes instead of predetermined ones. According to Jyotiraditya Scindia, the Civil Aviation Minister, UDAN 5.0 would enhance air connectivity to remote and regional areas. The UDAN scheme has played a crucial role in improving regional connectivity and making air travel affordable. Its previous rounds successfully operationalised several routes, airports, heliports, and water aerodromes. The UDAN 5.0 initiative is expected to strengthen the country’s air connectivity infrastructure further. It provides airlines with the opportunity to propose new routes and leverage viability gap funding to connect remote and regional areas. The UDAN 5.0 initiative is a significant step towards achieving the goal of increasing regional connectivity and promoting economic growth. It will also open up opportunity of regional air operators including Star Air, FlyBig, Indiaone Air, among others. — Ashish Sinha I ndia’s steel exports to the European Union (EU) could increase by up to 40 per cent due to the full implementation of the Carbon Border Adjustment Tax Mechanism (CBAM) by the EU, according to an industry report. CBAM mandates strict disclosure and purchase of carbon credits to offset emissions. Importing EU nations will require quarterly disclosures across seven emission-intensive sectors from April 2024 and gradually penalise emission differentials between 2026 to 2034 through the purchase of carbon credits to bridge the cost differential with steel produced in the EU. The seven sectors, including iron and steel, account for nearly 35 per cent of India’s exports to the EU in the merchandise space. India’s large steel mills, which lead the country’s exports, have an average emission of 2.2-2.6 tonne of CO2 per tonne of crude steel, around 70 per cent higher than the EU average of 1.4 tco2/tcs. Experts estimate that Indian steel companies may face an 8-9 per cent cost increase by fiscal 2030 due to current emission levels and average carbon pricing, with a further 15 per cent increase in cost due to greenflation, resulting in an overall cost impact of 40 per cent passed on through an increase in steel prices. — Ashish Sinha Steel Exporters Face CBAM Challenge UDAN To Spread Its Wings Further
Leaders Thursday With Thought HARBINDER NARULA An exclusive series featuring POWERFUL LEADERS POWERFUL THOUGHTS and their neoteric visions for the industry Top Business Leaders in Healthcare 1. SANJIV NAVANGUL, MD & CEO, Bharat Serums & Vaccines Ltd 2. DR. SHRIRAM NENE, Healthcare Innovator and Cardiovascular Surgeon 3. ANAND K, CEO, SRL Diagnostics 4. DR. TARANG GIANCHANDANI, CEO, Sir H.N. Reliance Foundation Hospital 5. DR. SANGEETA REDDY, Joint MD, Apollo Hospitals 6. CHANDRA GANJOO, Group Chief Executive Officer, Trivitron Healthcare 7. GIRISH KRISHNAMURTHY, MD & CEO, Tata Medical and Diagnostics 8. REKHA DUBEY, CEO – Aditya Birla Memorial Hospital 9. DR. MAHIPAL S. SACHDEV, Chairman – Centre for Sight 10. AMEERA SHAH, Managing Director, Metropolis Healthcare 11. DR. NITIZ MURDIA, Co-Founder and Managing Director, Indira IVF 12. DR. VAIBHAV KAPOOR, Co-Founder - Pristyn Care 13. D.A. PRASANNA, Managing Partner, Acunova Life Sciences LLP 14. MOHIT NIRULA, CEO, Columbia Pacific Communities 15. MEENA GANESH, Co-Founder & Chairperson, Portea 16. BHAWNA SIKKA, Category Head, Oral Healthcare, Haleon 17. HARI SUBRAMANIAM, Founder & Director of Lifesigns 18. DR. SIDDHANT BHARGAVA, Celebrity Nutritionist, Founder - Food Darzee Subscribe to YouTube Channel: BWBusinessworld For Speaking Opportunities and Partnerships: SMRIDHI SHARMA [email protected] +91 98715 98343
Leaders Thursday With Thought HARBINDER NARULA An exclusive series featuring POWERFUL LEADERS POWERFUL THOUGHTS and their neoteric visions for the industry Top Business Leaders in Healthcare 1. SANJIV NAVANGUL, MD & CEO, Bharat Serums & Vaccines Ltd 2. DR. SHRIRAM NENE, Healthcare Innovator and Cardiovascular Surgeon 3. ANAND K, CEO, SRL Diagnostics 4. DR. TARANG GIANCHANDANI, CEO, Sir H.N. Reliance Foundation Hospital 5. DR. SANGEETA REDDY, Joint MD, Apollo Hospitals 6. CHANDRA GANJOO, Group Chief Executive Officer, Trivitron Healthcare 7. GIRISH KRISHNAMURTHY, MD & CEO, Tata Medical and Diagnostics 8. REKHA DUBEY, CEO – Aditya Birla Memorial Hospital 9. DR. MAHIPAL S. SACHDEV, Chairman – Centre for Sight 10. AMEERA SHAH, Managing Director, Metropolis Healthcare 11. DR. NITIZ MURDIA, Co-Founder and Managing Director, Indira IVF 12. DR. VAIBHAV KAPOOR, Co-Founder - Pristyn Care 13. D.A. PRASANNA, Managing Partner, Acunova Life Sciences LLP 14. MOHIT NIRULA, CEO, Columbia Pacific Communities 15. MEENA GANESH, Co-Founder & Chairperson, Portea 16. BHAWNA SIKKA, Category Head, Oral Healthcare, Haleon 17. HARI SUBRAMANIAM, Founder & Director of Lifesigns 18. DR. SIDDHANT BHARGAVA, Celebrity Nutritionist, Founder - Food Darzee Subscribe to YouTube Channel: BWBusinessworld For Speaking Opportunities and Partnerships: SMRIDHI SHARMA [email protected] +91 98715 98343
16 | B W BUSINESSWORLD | 06 May 2023 S CHATGPT SEXIST? Does the AI chatbot pose a danger to society? How accurate are ChatGPT’s answers to complex questions? Let’s deal with the sexism charge first. Sharmin Ali is founder of a deep-tech startup called Instoried. She complained to journalists Arpika Bhosale and Aastha Atray Banan in Sunday Mid-day: “At the core of any open AI is a man – not a woman – who inputs ‘variables’. They tell the AI what words in a sentence are positive or negative, such as happy, sad, angry or joyful. Now add AI’s auto-learning into the mix, and the machine is assigning its own values to new words and framing its responses to users accordingly. These then include the inherent bias of the man, who assigned the first variable, a value which is now multiplied on an unimaginable scale.” Turn now to the second concern: does ChatGPT pose a danger to human society? Elon Musk, founder of Tesla and SpaceX and reluctant owner of Twitter, thinks it does. Along with a bunch of AI experts, Musk has called for a six-month moratorium on developing more advanced AI systems like GPT-4. The Future of Life Institute issued a letter last month signed by Musk and over 1,000 other experts. The letter warned: “Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable.” Is that paranoid? Many AI specialists think it is. ChatGPT has built in safeguards to block pornography, homophobia, racism and, yes, sexism. ChatGPT comprises more than 100 trillion parameters and is constantly improving, upgrading and updating data. The latest avatar of ChatGPT was unveiled recently. Bloomberg called it Chat GPT’s “iPhone Moment” which poses a “threat to Google’s sprawling tech empire.” Exactly how? Bloomberg explains: “Just as we were getting used to the idea of ChatGPT writing emails and conducting research, Open AI has upgraded it with capabilities that make it even more of a threat to big tech companies such as Google, ChatGPT’s new plugins, released last week with relatively little fanfare, are a major leap forward for the technology. In a nutshell, it is going from merely generating text to taking action on the web, turning it into the type of powerful virtual assistant that Alphabet Inc.’s Google and Apple Inc. have been trying to build for years.” That brings us to the third question: how accurate is the output from ChatGPT when asked a relatively straightforward question but one with an historical, economic or scientific context? To test this, I first asked ChatGPT: “What is the probability that life as we know it or as we don’t (for example, plasmoid) exists in the universe? Is distance the only reason we’ve not made contact with extraterrestrial life?” In seconds, ChatGPT responded: “As an AI language model, I cannot provide a precise probability of the existence of lie in the universe since we do not have enough evidence to make an accurate estimation. However, given the vast size and age of the universe, it is highly probable that life exists beyond Earth, whether it ChatGPT’s Trial by Fire I Minhaz Merchant COLUMN MINHAZ MERCHANT IS THE BIOGRAPHER OF RAJIV GANDHI AND ADITYA BIRLA AND AUTHOR OF THE NEW CLASH OF CIVILIZATIONS (RUPA, 2014). HE IS FOUNDER OF STERLING NEWSPAPERS, WHICH WAS ACQUIRED BY THE INDIAN EXPRESS GROUP
06 May 2023 | B W BUSINESSWORLD | 17 as climate change, trade, and security. India’s rise could potentially put it in direct competition with China, which is currently the world’s second-largest economy. India and China have had a long-standing border dispute and have often competed for influence in the region. A stronger Indian economy could lead to a more assertive Indian foreign policy and potentially heighten tensions with China. “Overall, India’s rise to become the world’s third-largest economy would be a significant development with far-reaching geopolitical implications. While it is impossible to predict exactly how this will play out, it is clear that the rise of India will have a major impact on the region and the world as a whole.” Like any innovation, AI chatbots are a work in progress. It’s wise not to be taken in by the hype or be unsettled by the paranoia. ChatGPT is overall a great innovation but it needs a reality check. I wrote six months ago in these pages that the “metaverse” was simply an upgrade on 3-D which has been around since the 1990s. Sure enough, Meta founder Mark Zuckerberg, who changed Facebook’s name to Meta to push the metaverse, has quietly stopped talking about it. Will ChatGPT meet the same fate? Absolutely not. This is a revolutionary innovation with loads of potential. It will improve with time. It will also have to sort out copyright issues with artists and content creators. But is ChatGPT a threat to human society, as some fear? That’s even less probable than encountering extraterrestrial life in the universe. is similar or vastly different from life as we know it. “Distance is certainly a significant factor that makes it challenging to detect extraterrestrial life, especially if it is beyond our current technological capabilities. The vast distances between stars and galaxies mean that even with our most advanced telescopes and instruments, we can only observe a tiny fraction of the universe. It is also possible that other civilisations have emerged and gone extinct long before we have developed the capability to detect them.” A little underwhelming but accurate enough. So I asked another, more contemporary, question: “India is now the world’s 5th largest economy. Its GDP of $3.36 trillion will overtake Germany and Japan by 2026 and 2028 respectively to become the world’s 3rd largest economy. What geopolitical changes will this engender?” Once again, ChatGPT gave a superquick response: “With a larger economy, India would have greater leverage in global affairs and would be able to exert more influence in international organisations like the United Nations. India could potentially become a more prominent player in global issues such Like any innovation, AI chatbots are a work in progress. It’s wise not to be taken in by the hype or be unsettled by the paranoia. ChatGPT is overall a great innovation but it needs a reality check. I wrote six months ago in these pages that the “metaverse” was simply an upgrade on 3-D which has been around since the 1990s Photograph by Sabura27
18 | B W BUSINESSWORLD | 06 May 2023 THE CULTURE of graft is pervasive and entrenched. Corruption affects every section of society and the economy. Contrary to popular perception, the economic reforms and liberalisation of 1991 did not reduce corruption. The growth and expansion of the economy actually ‘created’ new and ‘hot’ avenues for high volume corruption, particularly in ‘outsized’ profits associated sectors such as natural resources, infrastructure financing etc. Administrative and judicial reforms didn’t keep pace with the 1991 reforms. A Crux study across 17,000 citizens, 400 small business owners and 35 policy makers highlights the depreciating impact that corruption can have on the economic ecosystem, and society as a whole. Corruption causes significant distortions and inefficiencies and diminishes growth. It is detrimental to a free, fair, competitive, and efficient market. It creates an uneven playing field for businesses. It affects both private and foreign investment. The social fallout is staggering. The Crux study highlights that intangible and long-term cost is acute and entrenched. Corruption erodes the credibility of the government, the very legitimacy of state institutions. It deBy Vikas Singh The author is an economist and columnist grades the social and moral fabric of society. It undermines social trust and gnaws away at the democratic process. Petty corruption raises the cost of engaging in productive activities, and disproportionately affects, even exploits the poor and the marginalised. It promotes lopsided development, perpetuates inequality. There are several other intangibles, namely diversion of resources and talent towards “lucrative” rent-seeking activities. Over 65 per cent of the young respondents believe corruption is the pivotal reason for brain drain. People take ‘comfort’ in the belief that corruption demolishes bureaucratic barriers. Insights from the Crux study show that the ‘non-enabling’ ecosystem (as a result of excessive and archaic regulations) can, and often is, counteracted by ‘lubricating the wheels’, but it does not necessarily increase economic growth. Not even in the short run. The study has a strong message, ie. corruption is an ‘inefficient’ tax that increases costs, reduces the return on investment (ROI). Even ‘good, well intended’ corruption has a long-term detrimental effect on the economy. Eradicating (even curbing) corruption can yield enormous fiscal benefits. The Crux research suggests that the government can potentially ‘collect’ 20 per cent more in taxes if people perceive it to be ‘less’ corrupt. Graft hampers the Ease of Doing Business, discourages private investments, robbing about a sixth of private investment, as per the study. Corruption can have a telling impact, devouring about 10 per cent of the GDP, hurting the growth rate by 15 per cent. Corruption diverts public resources from high multipliers such as education, health, and infrastructure; and drains it into capital projects, where bribes and commissions are easier to come by. Globally investment in education and health is one-third lower in ‘more’ corrupt countries. But the cost of corruption is greater than the sum of lost money, and is difficult to fathom. Lobbying and interest accentuate bias and CORRUPTION ERODES THE GOVT.’S CREDIBILITY, EXPLOITS THE POOR COLUMN
06 May 2023 | B W BUSINESSWORLD | 19 tiatives, AI and big data pivoted automation of process and procedures are crucial. Similarly ensuring the integrity of the Right to Information (RTI) process, citizen charters, social audits and public service delivery and the grievance redressal mechanism, will curb corruption. India needs electoral reforms such as barring criminals from the political process, banning cash donations, and exploring the idea of state funding. Judicial interventions can help clean up the politics of criminals. The study points to several positives. The government is surely and swiftly against the corrupt; importantly exemplifying these actions. Additionally, the judiciary is more proactive, with the Supreme Court ordering trial courts to expedite cases. The government has been digitising procurement and tendering and the bidding process for a more transparent and accountable system. The JAM trinity (Jan-Dhan, Aadhar and mobile) has helped cut red tape in service delivery, but it is not sufficient. It is not an easy battle. It needs a strong political will, tenacity, and commitment to overcome corruption and some more. It is imperative for the political leadership to take bold steps. The legal framework changes and administrative reforms are necessary to develop greater transparency in public dealing. India needs to start with the areas of higher risk – such as procurement, revenue administration, management of natural resources, as well as effective internal controls. It needs to build capacities in ‘mutually’ supporting institutions. Most institutions lack genuine autonomy, many the capacity, and a serious sense of purpose. Eradicating corruption and promoting transparency and accountability is crucial for an equitable and prosperous future.A professional and ethical civil service is the fulcrum of good governance. Similarly, the Press and the media can play an even bigger role in the fight against a corrupt system. prejudices in policy design and delivery. Poorly designed, badly implemented welfare schemes are good examples. Leakages and diversion rob the poor a fifth, widening the inequality gap. Additionally, it undermines the quality of services, as much as its delivery. It shows up as distortions in spending priorities, ultimately hurting sustainable and inclusive growth. Public procurement accounts for a third of India’s GDP. Procurement related to public investment is a hot spot, particularly susceptible in large projects. The ‘unique’ features make it harder to compare costs and are easier to inflate costs and conceal bribes. The criminalisation of politics, coupled with black money in elections is the fountainhead of corruption. Other reasons for the failure of anti-corruption measures include nominal electoral reforms, excessive political control over bureaucracy, colonial administrative structures etc. Under-reporting of crime encourages criminals. Judicial indifference, particularly at the lower echelons, compels people to adopt extra-legal methods. The broken criminal justice system urgently requires repair. Judgment in court cases take years and decades. It encourages impunity and reinforces corrupt behaviour. Most accept that bribes are the only way to move ahead in the queue. The study suggests various measures to tackle corruption. India needs radical reforms. Holistic administrative reforms and effective implementation of e-governance iniCorruption causes significant distortions and inefficiencies and diminishes growth. It is detrimental to a free, fair, competitive, and efficient market. It creates an uneven playing field for businesses Photograph by Webphotographer/Canva
20 | B W BUSINESSWORLD | 06 May 2023 colades, and gaining promotion to a leadership position, but they may not feel satisfied with their life. They may experience stress, burnout, or a lack of meaning and purpose in their work. Success can be fleeting, and the pursuit of success can become a never-ending cycle, leading to a sense of emptiness and dissatisfaction. Success can lead to isolation from friends, family, and social networks, which can impact overall life satisfaction, and very often it is said, ‘it is indeed lonely at the top’. Success can create pressure to maintain or exceed previous achievements, leading to stress, anxiety, and a sense of never being satisfied with one’s accomplishments. Success that does not align with personal values and beliefs may not provide a sense of satisfaction or purpose. On the other hand, a person may not have achieved conventional measures of success but may feel deeply satisfied with their life. They may have close relationships, pursue hobbies and interests that bring them joy, or engage in meaningful volunteer work. On the other hand, satisfaction can provide a more enduring sense of well-being and happiness. Satisfaction is a subjective experience that depends on one’s values, beliefs, and expectations. It can arise from a sense of purpose, meaningful relationships, or personal growth. Satisfaction can lead to a sense of well-being, happiness, and fulfillment, even if one has not achieved external measures of success. Successful individuals may not be satisfied for several reasons: I N THE 1975 Bollywood movie, Deewaar (the wall), the story unfolds of two brothers, struggling to survive in the slums of Mumbai. The elder sibling Vijay turns out to be a gangster, while the younger, Ravi becomes an honest cop. An informal meeting takes place under an overbridge. Vijay (played by Amitabh Bachhan) advises Ravi (played by Shashi Kapoor) to take a transfer. There is an intense argument between the two. Amitabh Bachchan launches into a lengthy diatribe and reminds Ravi of the wealth he owns (bungalow, cars, properties, bank balance) and challenges his brother, ‘What do you have?’. Millions of Indians will remember the iconic dialogue he delivered in response: ‘Mere Paas Maa Hai’ (I have Mother) signifying the importance of a mother as compared to material possessions. Vijay may appear to be successful, but it is Ravi who is most satisfied. Why is it that success does not essentially bring satisfaction along, and vice versus? We are all aware of individuals and teams who find success in their multiple projects and pursuits, yet they feel they miss something. Success and satisfaction are related but distinct concepts. Success leads to achieving a goal or objective, while satisfaction refers to a feeling of contentment or fulfillment. The former can be measured in different ways, such as by achieving financial or career goals, winning a competition, or completing a project. Success can provide a sense of accomplishment, boost confidence, and lead to further opportunities. Relying solely on external measures of success may not lead to a sense of internal satisfaction. Success does not necessarily guarantee satisfaction. For example, a person may achieve great success in their career, earning a high salary, receiving acWhy Success & Satisfaction Rarely Meet PEOPLE TALK By Srinath Sridharan & Steve Correa
06 May 2023 | B W BUSINESSWORLD | 21 filled or lacking a sense of purpose. This can be because their success does not align with their values or because they lack a broader sense of meaning in their work or life. l Unfulfilled expectations: Often, successful people set high expectations for themselves and their teams, and when those expectations are not met, they may feel dissatisfied. This could be due to a variety of reasons such as external factors beyond their control, or simply not achieving the desired outcome. Both success and satisfaction are rare because they are subjective, multifaceted, and require effort and perseverance. Achieving them often involves making difficult choices and overcoming external obstacles. They are also personal concepts, that each individual can define on their own terms. Therefore, rather than focusing on society’s expectations, individuals should strive to find their own path to success and satisfaction that aligns with their values and passions. l Perfectionism: Successful individuals may have high standards for themselves and their work, leading to a constant pursuit of excellence that can be challenging to maintain. This constant striving can lead to feelings of dissatisfaction and a sense that they could always do better. l Pressure: Successful individuals are often under intense pressure to perform, deliver results, and meet expectations. This pressure can be challenging to manage, leading to stress and burnout, which can lead to feelings of dissatisfaction. l Lack of balance: Successful individuals may prioritise their work over other areas of their life, such as family, friends, hobbies, or personal growth. This imbalance can lead to feelings of dissatisfaction and a sense of missing out on other important aspects of life. l Imposter syndrome: Successful leaders may struggle with imposter syndrome, a psychological pattern in which they doubt their accomplishments and fear being exposed as frauds. This can lead to feelings of dissatisfaction and a constant need to prove themselves. l Lack of purpose: Successful leaders may achieve their goals but still feel unfulSrinath Sridharan is author, Time for Bharat, an executive coach & corporate advisor Steve Correa is executive coach, OD Consultant & author of The Indian Boss at Work Satisfaction is a subjective experience that depends on one’s values, beliefs, and expectations. It can arise from a sense of purpose, meaningful relationships, or personal growth. Satisfaction can lead to a sense of well-being, happiness, and fulfillment, even if one has not achieved external measures of success Photograph by Indiapicturebudget
22 | B W BUSINESSWORLD | 06 May 2023 With AI Marketing, Trust & Transparency Should Be Top Priority N ORDER TO CREATE tailored customer experiences that lead to loyal connections, it is becoming standard practice to gather and nurture first- and zero-party data through an open and transparent value exchange with consumers. Artificial Intelligence (AI) continuously learns from data from a variety of consumer interactions to uncover opportunities that would otherwise be difficult to find at scale. When combined with other analytics tools to develop complex insights, reveal problems, and enhance processes, it becomes even more effective. As a result, there is a stronger, more meaningful connection with customers. It’s simplistic to assume that AI will be objective merely because it is being carried out by a machine using factual knowledge, free from the influences of a human construct. However, using only historical data to create self-learning, black-box algorithms has the potential to perpetuate inherent biases regarding factors like gender, race, ethnicity, and socioeconomic status. And the choices a business makes based on this AI could result in outcomes that reinforce the status quo instead of bringing about a much-needed change. Artificial Intelligence initiatives could also backfire and result in public outcry or even legal repercussions if used poorly. THE AI ADVANTAGE When it comes to precisely identifying market openings, intuitively anticipating client wants, nurturing leads, and assisting in the design of the customer journey, the machine learning (ML) component of AI is invaluable. At each stage of the customer journey, artificial intelligence has the potential to be a priceless enabler. It’s also interesting to note that most conventional marketing methods already use AI in some form; anyone who uses social media for marketing or data pipelines already employs AI. Artificial Intelligence also has a considerably reduced potential for error than humans do. This is its greatest asset. Artificial Intelligence also has the speed, capacity to digest considerably bigger volumes of data, and capacity to produce more marketing outreach. The ability of AI to develop messaging and marketing content that directly targets prospects and increases its effectiveness is now the most alluring application of AI in marketing. Social listening data is used to generate the messaging, which has a remarkable ability to target the right audience and convey the right message. Infinite customer profiles can be created using AI tools based on the billions of data bytes gathered through AI algorithms, including timeframes of needs and preferences, geographic focus, and digital interactions. Slice and dice data using any or all of these variables to create the best targeted messaging for each prospect. This is frequently delivered with the use of chatbots, which is another application of AI. I Amit Tiwari , Global Head AmitScope Marketing Demand Center, TCS
06 May 2023 | B W BUSINESSWORLD | 23 Professionals in marketing and communication won’t have to waste time and money experimenting with different message and content ideas before finding the ideal one, thanks to AI. That is a tremendous save right there. These models allow for precise customisation of each concept and term. The best models can be adopted or rejected quickly and effectively by monitoring tactical data collected in real-time. But AI is not yet completely safe. At the end of the day, the decision-maker is still a human mind, even though it can give marketing strategies a significant edge. This is not to call AI inefficient, but we must remember that there are some areas where humans outperform machines, and very often, a business decision made from the heart outperforms one made from perfect machinemade data-driven choices. AND YET, THE FUTURE IS AI There is no escaping the necessity of AI and its critical part in the development of marketing. But as its use becomes more widespread, we must become adept at handling it responsibly. Artificial intelligence that upholds basic principles like individual liberties, privacy, non-discrimination, and nonmanipulation is said to be ethical AI. Customers anticipate businesses to use AI in a moral and objective way. Businesses will (and should) be held responsible for using it in an open manner that doesn’t hurt or discriminate against any stakeholder group. Here, the phrase “ethical AI” turns into a marketing requirement. It is necessary to delve deep into your data to understand the inherent biases and teach your technology to combat them. Instead of viewing consumers as a collection of demographic data points, it means considering them as individuals with diverse backg r o u n d s , h o b b i e s , a n d requirements. Consumers are increasingly, in my experience, looking for humanised communication from the brands they interact with, and ethical AI presents a unique chance to win their trust. Additionally, having an AI strategy that is open, honest, and clear can set you apart from competitors who disguise their goals behind an appearance of reliability. Regardless of optics, it is the responsibility of marketers to observe privacy when using AI to personalise marketing messages. There is a fine line between targeted advertisements that are helpful and the intrusive ones. Ushering in automated procedures and making data-driven decisions simpler than ever, artificial intelligence (AI) has completely changed how businesses function. Marketing too, thanks to ongoing developments in data management, analytics, and technology, as well as external factors like privacy laws, market changes, consumer trends, and social sentiment, has been on a path of extensive transformation. However, now with AI making significant inroads into marketing technology, where it is being used to target and personalise ads, generate content, and predict customer behaviour there are ethical considerations to be aware of and the increasing need for moral metrics Photograph by Ramcreative
24 | B W BUSINESSWORLD | 06 May 2023 By concentrating on demographic factors, it is also simple to fall victim to stereotype bias – the attribution of particular characteristics to a member of a particular social group – or to exclude sections of your customer base. So how do you make sure your marketing is truthful, inclusive, worthwhile, and respects privacy? Artificial Intelligence can only be trusted if it is developed transparently, with human rights protection, justification, accountability, and inclusion at its heart. To ensure that AI benefits customers, it’s important that marketers prioritise ethics of AI in their marketing practices: u Use and collect individual information appropriately – By only gathering the data that is absolutely required, you can give the ethics of AI top priority in your marketing strategies. This is crucial because you don’t want to gather sensitive information that might give rise to privacy issues. When it’s not essential, you shouldn’t keep pestering your audience for private information because doing so can erode their trust in you. v Be transparent about the data use – It’s beneficial to explain to your audience how your AI functions when integrating it into your marketing plan. This is also useful for elaborating on the rationale behind your AI’s choices, in order to further clarify the goals and values of your company. w Give customers control and clarity – You should think about letting your audience decide exactly what information is collected. It demonstrates to your audience the brand’s willingness to put their privacy first. Additionally, it helps your audience comprehend the choices made by your business and how AI affects their daily lives. x Provide clear benefits in exchange for data – Asking for your audience’s data is a sensitive subject, so explaining the benefits of sharing data with your brand is crucial. This can help build trust and brand awareness. It also gives your audience a better understanding of how your brand works and what they’re trying to accomplish. While there are several advantages of using AI in marketing, it’s crucial to be conscious of and address the e thical issues involved. Marketers and brands can make sure they are utilising this potent tool in a way that benefits both their customers and society as a whole by adopting a responsible and ethical approach to AI development and implementation. Regardless of optics, it is the responsibility of marketers to observe privacy when using AI to personalise marketing messages. There is a fine line between targeted advertisements that are helpful and the intrusive ones. By concentrating on demographic factors, it is also simple to fall victim to stereotype bias – the attribution of particular characteristics to a member of a particular social group – or to exclude sections of your customer base. So how do you make sure your marketing is truthful, inclusive, worthwhile, and respects privacy? Amit Tiwari , Global Head AmitScope Marketing Demand Center, TCS Photograph by Kahovsky
For Partnerships & Speaker Opportunities: Gareema Ahuja, +91 7827590848, [email protected] For Nomination Inquiries: Gareema Ahuja, +91 7827590848, [email protected] DR LALIT BHASIN JUSTICE A.K. SIKRI JUSTICE DEEPAK VERMA DR ANNURAG BATRA ARSHDEEP SINGH JATIN JALUNDHWALA KAUSHIK MUKHERJEE MOHIT SHUKLA NIKHIL GULIANI POOJA SEHGAL MEHTANI Eminent Jury in association with SUMMIT AND LEGAL LEADERS AWARDS 2023 4TH EDITION #BWGLLS MAY 2023 NOMINATE NOW LAST DATE TO NOMINATE: MAY 5, 2023 RAJEEV CHOPRA RAJENDRA MISRA ROOP LOOMBA VANI MEHTA
26 | B W BUSINESSWORLD | 06 May 2023 ITH INCREASE in the frequency and severity of Extreme Weather Events, due to climate change, heavy downpours that cause flooding in a short period of time have become a regular feature. What does that do to the citizens in big cities; life gets totally disrupted, entire city comes to a standstill, people can’t get to their place of work or schools, colleges, banks etc. Even critical patients can’t reach hospitals. Buses and cars are stranded on the road; local trains can’t operate. At times such a situation can last for as long as two days – Gurgaon’s infamous Gurujam of 29 July 2016 had held the city to ransom for 20 hours and on 29/30 August 2017 Mumbai was locked down for two days – causing huge damage to the roads, houses and other buildings, millions worth of household goods and commercial stocks; there was a huge economic loss and even lives were lost. There have been similar mishaps in Chennai, Bengaluru, Srinagar and other places. Why does this happen? The answers are simple. Most urban topographies have ‘natural drainage channels’ and creeks. However heavy the downpour, some water percolates down and in due course, reaches the underground aquifers. Rest flows into the drainage channels or creeks and reaches the natural water bodies. Part of it, falling on roads and concrete floors, goes into storm drains that discharge into rivers and eventually the oceans. The hectic pace of construction in big cities endeavours to cover every square foot of land and parts of the creeks and channels also get covered under valuable real estate. Construction debris are dumped in the creeks with impunity and the network is disconnected at places. So, when there is heavy rainfall, water accumulates on the roads because it has no exit, except roadside municipal drains, which are too small. At one time the Bombay Municipal Corporation was toasted by the rest of the country as the most efficient civic body. The city faced heavy rains almost daily during the monsoons but water would just flow into drains and there would be no interruption to life and work in the metropolis. The drainage system was systematically declogged before the onset of the monsoons; buses and local trains ran on schedule, electricity breakdowns were unheard of and the city was well managed by dedicated professionals. With the passage of time, population increase led to pressure on land and influential builders started grabbing every available plot for constructing skyscrapers all over. The inevitable happened. W Let’s Give Sustainable Growth a Chance! SUSTAINABILITY By Krishan Kalra Column
06 May 2023 | B W BUSINESSWORLD | 27 this magnitude occurred again for the next three years, everything moved to the back burner. Another deluge occurred on 20 August 2020. Between 19 August and 20 August nearly 200 mm of rain fell – including 50 mm on the 20th in a short span of two to three hours – resulting in deep flooding all over the city – especially in the underpasses on the newly constructed Golf Course Road, a showpiece of the country’s biggest developer, which connects their iconic golf and residential complex with the Gurgaon-Delhi expressway. High capacity pumps, arranged on a war footing, pumped out water @ 50-60 MLD (million litres per day) to bring about a semblance of normalcy. Even the parking lots inside the complex were flooded in deep water, damaging many luxury cars. This really shook the administration and the visionary CEO of the Gurugram Metropolitan Development Authority (GMDA) decided to find a permanent solution. He went on to say that “The city has been developed without proper planning over the years. We have to make a choice – we can either make sustainable changes now and save the city or continue to face similar situations in future”. Thankfully, the NGO ‘I AM GURGAON’ (IAG) was asked to step in. The NGO – founded by a brilliant young architect and a young, hyper active lady, who is a former banker, had already proven its mettle by converting a mining ravaged, derelict 380-acres area into the famous ‘Biodiversity Park’. They decided to carry out a scientific survey and commissioned TERI; whose experts – including PhD scholars, who specialise and work on urban water bodies – carried out a detailed hydrogeological study over three months and made excellent sustainable suggestions – called Regular Urban Floods disrupt life of millions, cause immense damage to infrastructure and huge economic losses. Lot of this is preventable with scientific studies and systematic municipal action Civic infrastructure started crumbling. Whereas huge diesel gensets took care of the power cut woes, there was no escape from flooding. Up north, Gurgaon – dubbed as the futuristic ‘millennium city’ – faced worse problems. Perhaps the fastest growing city in the country, civic authorities here were just not able to get a grip on the services. The Gurujam – infamous sobriquet earned by the city on 29 July 2016 – was perhaps the last straw. There were cases of people stuck in their cars for as long as 16 hours on Sohna Road and if it was not for the help of residents nearby – for water, food and even carrying the elderly to their homes for using washrooms – suffering would’ve been much greater. On the flipside, vocal angry criticism by the people and adverse publicity woke up the authorities and triggered high level discussions to find a solution. Committees were appointed and it was decided to construct a drain from MG Road to Vatika Chowk with an estimated budget of Rs 100 crores. However, as is common in public projects, not much happened beyond patchwork cleaning of clogged drains etc. Since nothing of Photograph by Indiapicturebudget
28 | B W BUSINESSWORLD | 06 May 2023 the Blue-Green Intervention – to avoid a repeat. Suggestions were indeed simple. Besides the crucial point of ‘new buildings not including areas of the creek network, bunds, hilly areas and forest land’ which are all part of the ‘recharge zone’, executive summary of the November 2020 report starts with the observation “the four creeks are existing rain water channels and their revival is the most important step to avoid flooding in the city and recharging the groundwater table”. It mentions, in simple words, that we should do the following: l (a) connect the missing (encroached) portions of the creeks network with kuccha channels that allow percolation down l (b) make catchment basins if the old water bodies cannot be rejuvenated l (c) Roads connecting the higher elevation GurgaonFaridabad highway and Golf Course Road – that also act as drainage channels during heavy rains – should have gentle breakers and discharge pipes so that gushing waters are diverted to the green belts, creeks and ponds l (d) all building complexes along the road and neighbouring areas to have 100 per cent ‘rainwater harvesting’ and enhanced water holding capacity l (e) sewage not to be allowed into storm water drains – it has to go into municipal sewers l (f ) ensure creation of recharge wells, with infiltration galleries, along the bunds (green corridors) that act as water repositories and l (g) ensure creation of wetlands. The GMDA decided to reactivate their ‘flood control room’ earlier than usual and issued instructions that the creeks – once fully connected – must remain unclogged at all times. To their credit, the 2021 and 2022 monsoons did not present any serious issues. Here’s hoping that the system will hold even if 2023 sees a repeat of the extraordinary 2020 like downpour! I AM GURGAON continues to work on revival of major water bodies of Gurgaon – lost to the greed of builders, their unholy nexus with some unethical municipal officials and the resultant construction of skyscrapers everywhere. They have already done great work in reviving huge tracts along the Wazirabad drain and the most prestigious Sikanderpur Lake was inaugurated on 7 April 2023 by the CM. This 90-acre lake and watershed area was a cesspool of sewage and trash from the village less than four years ago when they were asked by the authorities to work on it. It took them nine months to just clean the area, including taking out 200 trucks of plastic waste. It was a classic case of successful public-private partnership with MCG fully supporting the efforts, removing encroachments, fencing the area and helping IAG in all facets including suggestions to raise corporate funds, planting trees and beautifying the place. The NGO, IAG continues to work on other projects at Badshahpur and Ghata etc. and hopefully, the happy partnership will continue. I can’t end this article without mentioning the Union Environment Minister’s frightening statement in the Rajya Sabha, on 6 April. “During the last five years, approximately 90,000 hectares of forest land has been used for other development projects including roads (20K) mining (19) irrigation (13) transmission lines (10) and defence (8). Eternal conflict between ‘development and sustainability’;” he said, concluding that the “only way we can make up is by creating new forests, water bodies and green areas.” I AM GURGAON continues to work on revival of major water bodies of Gurgaon – lost to the greed of builders, their unholy nexus with some unethical municipal officials and the resultant construction of skyscrapers everywhere The author is a Trustee of The Climate Project Foundation India, former President of AIMA and former Member BOG of IIMC, Kolkata Photo courtesy: Indian Air Force SUSTAINABILITY By Krishan Kalra Column
06 May 2023 | B W BUSINESSWORLD | 29 Aditi Maheshwari, CEO of Vani Prakashan, talks about the pivotal role the publishing group is playing in bringing out the best books across genres By Resham Suhail Given the diversity of India, the synergy between the literatures in the Indian languages has been enhanced through translations. “Books are building blocks of a nation and a publisher is the karigar of this wall,” Aditi Maheshwari asserts. While sharing her journey with Vani Prakashan Group, Maheshwari says, “As a kid, there were books or people working with books around me which made me think that this is the only job everyone has in this world.” Legacy Business Established in 1963, Vani Prakashan, now a conglomerate in its 60th year, is the largest Hindi publishing group and the winner of Swarn Kamal. Vani Prakashan was established by Dr Premchand Mahesh in 1963, Aditi’s grandfather. Across print, electronic, and audio, it has published over 12,000 books including the ones acquired through Bharatiya Jnanpith in 2022 which is considered one of the most expensive acquisitions in the world of Hindi literature. With expanding its horizon, Vani Prakashan Group has introduced and the notfor-profit arm Vani Foundation that is dedicated to work in the book ecosystem. With Jaipur BookMark, it established the Vani Foundation Distinguished Translator Award, now in its eighth year. Women In Charge With an eye for good print-worthy content, a high-scorer science stream student who switched to arts and then went abroad for business management studies, Aditi has travelled some unconventional roads. Women in top leadership roles at Vani have never seemed surprising to Maheshwari because she saw her grandmother leading it before her father, the legacy publisher Arun Maheshwari and mother, Ameeta Maheshwari took charge of the group. Talking about the division of roles and responsibilities, she has always been more inclined to brainstorm, book selection, edit and sales-different from what her younger sister Damini looks at which is tech-related part of the business processes. “The journey would not have been complete without my childhood friend and life partner Arun”, she says. Marching On With Digitisation Elaborating on the importance of being digitally sound, she says, “During lockdown days, Vani understood the need of connecting readers and authors to help the society sail through the gloom”. She further narrates that Vani Prakashan Group has come a long way from being one of the first publishing houses to start digitising the catalogue in Hindi and make it available to online sales platforms in early 2000s to being at the helm of digital focus during the mega World Book Fair in 2023. “To represent the literary estates of Manohar Shyam Joshi, Dharmveer Bharti, Nirmal Verma, Surendra Verma, Swadesh Deepak, Uday Prakash, Mahashweta Devi, Narendra Kohli, Yatindra Mishra, Mamta Kalia, Mridula Garg and more is a matter of huge responsibility. One needs to love and respect their literature to represent it”, she specifies. As a CEO, Aditi Maheshwari’s vision for Vani Prakashan Group remains to bring out the best books across genres and be present where the readers are, in any mode. “It is an incredibly human resource intensive work. Our team is our strength”. ‘Library Systems Need To Be Revitalised’ According to her, Raja Ram Mohan Roy’s library system started in Calcutta has been the world’s most successful library system, which is unfortunately not as active now. Maheshwari sounds disheartened but hopeful about the role of the Indian government towards publishers. “The readers are not benefitted at all by making books ‘GST free’. The government must understand that due to GST on raw materials the process of book production has gone up by 18-20 per cent. Also, the cost of paper has increased six times in the last four quarters.” The government has been encouraging towards the homegrown industries, but the private players of the book publishing industry have been facing unfair competition from the publishing agencies of the government of India, whereas the private players are the true flag bearers of diversity in content, Maheshwari underlines. Aditi Maheshwari refers to the New Education Policy as a welcome watershed moment. She laments that several districts like Ara in Bihar have no proper bookshops or libraries even today and without the government, most powerful organisation of the country, the change will not happen. “Our Nation Is In Dire Need Of A National Book Policy” INTERVIEW
30 | B W BUSINESSWORLD | 06 May 2023 HE ANSWER to the question, are password managers necessary, would differ from person to person. Those of us who are active on the internet have multiple online accounts requiring multiple passwords, ideally unique. Despite knowing the importance of a strong password, people are lax about it. The figure below shows the five most common passwords created by Indian users and the time taken to crack them. One hears news about cyber crime every day and there is considerable awareness about such threats increasing significantly, but as is obvious from the above, people are still indifferent in their password habits. When asked, the answer is that they opt for simple passwords to ensure that they can memorise them and not experience the frustration of forgotten passwords and having to restore them through a complicated process of answerPassword Manager, Anyone? T COLUMN based. Malwarebytes Labs defines a password manager as “a software application designed to store and manage online credentials. It also generates passwords. Usually, these passwords are stored in an encrypted database and locked behind a master password”. At one’s discretion, password managers can generate, store and autofill strong passwords, along with other frequently used information, such as credit card numbers. One just needs to remember the master password to get access. Password managers can: l synchronise passwords across devices l warn of single password usage across accounts l work on multiple operating systems l spot fake sites l provide an alert if a login has been breached l create a Virtual Private Network (VPN) to disguise IP address ensuring protection of one’s information when using public WiFi. Each type of password manager has its pros and cons. The ones inbuilt into the browsers are convenient and portable across devices. ing security questions, the answers to which they have forgotten. This is beautifully portrayed by xkcd.com in its comic, “Password Strength”, with the comment “Through 20 years of effort, we’ve successfully trained everyone to use passwords that are hard for humans to remember, but easy for computers to guess”. This is where password managers come in. With so much of our data in the public domain, password managers are the protection from theft of that data. They are the first line of defence that can keep cyber criminals at bay. Password managers are of different types; built into web browsers or third-party extensions for the browsers, on-device or tokenn By Jayesh Shah However, with extra convenience comes the risk of reduced security since they store the passwords online and are the prime target of cyber-attacks. Password managers installed on the device lessen the risk associated with browser-based ones since the passwords are stored locally. Another big advantage is that they can be used without connecting to the internet. The flip side is that they are not portable and need to be installed on every device used by the individual. Token-based password managers can be in the form of USB devices, smart cards or key fobs. In this case, passwords are stored on these devices. The issue with these types is the risk of the devices getting damaged or stolen. CONSIDERATIONS IN SELECTING A PASSWORD MANAGER Cloud-based or on-device – the former is quite popular, since it is device independent and works across devices, but if one is a cloud sceptic, then the on-device password manager works equally well. Device compatibility – it is important to check whether the selected
06 May 2023 | B W BUSINESSWORLD | 31 The author is a digital transformation expert and currently Executive Director, AutomataPi Solutions application works on operating systems seamlessly and has browser extensions for browser-based usage. It should also have syncronisation option across devices. Additional security – does it offer twofactor authentication and biometric features like fingerprint or facial recognition? WHY PASSWORD MANAGERS? With digital becoming a way of life, individuals have several online accounts from social media to financial to shopping and a user id and password is a must for each one. Under the circumstances, the convenient option is to select a relatively easy to remember password leaving them open to the risk of a data breach. Many understand the need for a strong password, and do take steps to create long, complex passwords, but it becomes a problem remembering them, especially for accounts that are not in use on a regular basis. This leads to frustration and stress about managing passwords. Are password managers absolutely safe? No one can guarantee that and there have been breaches in the past, but with military grade encryption that most password managers use, their track record has been pretty good to-date. So, if you are from that breed of people who regularly get locked out of accounts and have to use the forgot password option frequently, you are a candidate for using a password manager. Whether to use a password manager or not is a matter of personal choice. But if the decision is to use one, the importance of the master password cannot be stressed enough. While password managers store passwords of individual accounts in an encrypted form, the master password is not stored and needs to be ideally memorised or kept in a safe place, because if it is lost there is no way to recover the stored passwords. If the decision is against using a password manager, do follow these good password habits – l Create strong passwords – at the least, 12 characters with a mix of uppercase and lowercase letters, numbers and symbols. l Do not use personal information like name or birth date in the password. l Use separate passwords for different accounts and avoid reuse of passwords. l Memorise passwords and do not write them down. l Do not share passwords. l Use two factor authentication where possible. In conclusion, in the context of password management, the words of James Scott, Senior Fellow, Institute for Critical Infrastructure Security, ring so true; “There’s no silver bullet solution with cybersecurity, a layered defense is the only viable defense”. Are password managers absolutely safe? No one can guarantee that and there have been breaches in the past, but with military grade encryption that most password managers use, their track record has been pretty good to date Photograph by Igor Vetushko
32 | B W BUSINESSWORLD | 06 May 2023 prises (SMEs) and micro, small and medium enterprises (MSMEs). That will enable the dual goal of not just accelerating growth but ensuring that ‘no one is left behind’ in the success story. This budget should not miss addressing the concerns of section. The first challenge is to get the micro, small and medium enterprises registered. Currently, 13.5 million units are registered on the Udyam portal. The budget needs to provide a mechanism for linking the urban data base of street vendors and shops to enable faster registration and better targeting of these enterprises. This repository will enable understanding the specific needs and issues of this group and coverage of schemes for their better skilling, exposure and adoption of new technologies, credit access and enable them to expand their markets by resorting to standardisation and immediate market feedback mechanisms. Market expansion by using new platforms like ecommerce is the new panacea, but issues related to compliances and GST still remain. The compliance burden and differential approach to the threshold of Rs 40 lakh for offline and online is a major disincentive for these enterprises to expand their markets and businesses. The one per cent TDS, online along with one per cent of GST, results in an additional expense of two per cent. It is evidenced that adopting an ecommerce platform also enhances their margins and therefore, better liquidity. The GST harmonisation is the immediate need with a single slab of five per cent for micro and small enterprises and 12 per cent for medium enterprises, with an exemption for those with turnovers of less than Rs 2 crores. Policies for export need to focus more on small and medium enterprises, along with ease of mechanisms and paper work. Moreover, MSMEs need a fund created of Rs 3,000- 4,000 crores to encourage and hand-hold them, so as to broaden their export avenues. An easier line of credit with easier access can get maximum subscription if the urban development authorities and MSME work in sync through a data base, ensuring better targeting and open up flow of working capital that gets choked because of delays in payment realisations in the supply chain. I POINT OF VIEW / MSMEs By Aruna Sharma NDIA AS THE FIFTH largest economy has two major issues to focus on in the Union Budget for the 2023-24 financial year, namely, inclusive growth and sustainable quality employment for its young population under the age of 35, who constitute 65 per cent of the total population. This budget needs to clearly lay down principles that could equip young India to take advantage of the growth story during this decade and be gainfully employed. Otherwise they will be laggards and a liability, adding to the issues related to inclusive growth like poverty, malnutrition, hunger index, stunting etc. To achieve the goal of a $5 trillion economy (having missed the first target of 2022) there is no other option but to focus on the 63 million MSMEs, of which 99 per cent are micro enterprises. Small and medium enterprises constitute about 0.52 per cent and 0.1 per cent of MSMEs respectively. They contribute 30 per cent to the GDP and most importantly, employ 111 million individuals in their workforce. Thus, an assured path to accelerate the pace of achieving the $5 trillion economy goal lies in the growth of small and medium enterInclusive Growth Mandates Focus on MSMEs
06 May 2023 | B W BUSINESSWORLD | 33 There is a need for a credit guarantee scheme and convergence between e-Shram, Udyam, the National Career Service and ASEEM portals. There is need to extend the PLI (production linked incentives) scheme for MSMEs to incentivise them to expand their business and explore new avenues. The issue of declaration of NPA as SMA 1 and 2 triggers on the 31st day of a month. The auto declaration of NPA needs a relook as the Asset Subordinate Guarantee scheme is yet to attract more subscribers. The Rs 20,000-crore Credit Guarantee Scheme for Subordinate Debt (CGSSD) launched in June 2020 to support stressed MSMEs or nonperforming assets (NPA) accounts is yet to attract a sizeable number of potential beneficiaries. In fact, the beneficiary count has dropped 37 per cent from a mere 473 in the financial year 2020-21 to 298 in FY 2022. The total beneficiary count under CGSSD stood at 771 as of March 2022. According to the MSME ministry’s FY 2022 annual report, the scheme had extended guarantees to distressed enterprises amounting to Rs 81.78 crore to 756 borrowers as of 31 December, 2021, indicating that only 15 new beneficiaries were added till March this year. Thus a relook is the need of the day. THE FIRST CHALLENGE IS TO GET THE MICRO, SMALL AND MEDIUM ENTERPRISES REGISTERED. CURRENTLY, 13.5 MILLION UNITS ARE REGISTERED ON THE UDYAM PORTAL. THE BUDGET NEEDS TO PROVIDE A MECHANISM FOR LINKING THE URBAN DATA BASE OF STREET VENDORS AND SHOPS TO ENABLE FASTER REGISTRATION AND BETTER TARGETING OF THESE ENTERPRISES Photograph by Johnnydevil Photograph by Indiapicturebudget
34 | B W BUSINESSWORLD | 06 May 2023 the Ease of Doing Business in a great way. The Return date should be extended by one day if the due date is Sunday, since there are two due dates in a month and it is very hard on dealers. The cut-off date for ITC in GSTR-1 should be extended to the 19th instead of the 11th of the month since there is no revenue loss to the department but it is very harmful to stop the ITC of purchasers on the 11th, even though the GSTR-3B date is the 20th of every month. The dealers should be given at least 90 days to clear the mismatch. The bank and market interest rate is decreasing day by day, so the interest rate in GST should be reduced to 12 per cent from 18 per cent, which is a very harsh and old rate. There were so many mistakes in the initial five years of the GST and these were not evasion of taxes, hence the amnesty scheme should exist to make suitable corrections and avoid the many notices. The restriction of setting off IGST First completely from CGST, even though the dealer has a sufficient credit balance in the SGST, is creating imbalance in the Credit ledger of the dealer. Suspended registration should be automatically revoked after filing of all the returns by the dealer and it is in the law, but GSTN has not started as yet. In the GSTR-10 the final returns of the maximum late fees are Rs 10,000.00 as most of the time this return is nil, but many retailers, sellers, wholesalers have failed to file it. The GSTR-9 should be made more useful since final assessment is made with the help of this Annual Return but it is not very useful for final assessment and a lot of notices have to be issued to make the final assessment and it has made the Assessment procedure so much more cumbersome. The annual return should have a column where a dealer can file his explanation. There should be a further relaxation in Section 16(4) to make the ITC available till filing of annual returns. It was a practice in VAT and if the same is given here, then it will be a great relief to the dealers and it will be no loss to revenue but if it is restricted, then it will be a double burden on the dealer. E-Invoice is visible on the GEPP Portal only after three days’ post the generation date. AfPOINT OF VIEW / MSMEs By Aruna Sharma The Hurry to Declare NPAs The mechanism for declaring NPAs should be restructured. At the moment banks declare retailers, sellers, traders and wholesalers with 90 to 180 days of unpaid loans as defaulters, instead of declaring their loans as NPAs. When issuing loans or setting up interest rates, banks do not treat trading businesses on a par with manufacturing activity. In contrast with banking loans available to businesses, high unjustified collateral pledge requirements, greater ratios of capital to loan and interest rates, etc., are demoralising and produce relatively high NPAs for banks, whereas dealers generate very low NPAs. The MSMEs are eligible for more manageable loans. The Insolvency and Bankruptcy Code is a valuable tool for resolving the lenders’ obligations within a set time frame. We advise treating traders equally with manufacturers in terms of loan size and interest rate, and granting working capital loans based solely on the company’s annual revenue without the use of collateral security. Banks should offer credit to the trading sector at a minimum of one per cent, or five to six per cent, over the RBI Repo rate, which is now 11 per cent to 12 per cent. At this rate of interest, no transaction can flourish or continue to grow. Moreover 90 days of unpaid loan if the (Retailer/ Seller/ Traders & Wholesaler) is unable to pay the interest on their bank loans, puts them on the defaulter list. GST Issues The GST compliance process has remained cumbersome for retail traders and it is a huge burden. Simplifying the process will help with Photograph by Amnarj20066
06 May 2023 | B W BUSINESSWORLD | 35 THE BANK AND MARKET INTEREST RATE IS DECREASING DAY BY DAY, SO THE INTEREST RATE IN GST SHOULD BE REDUCED TO 12 PER CENT FROM 18 PER CENT, WHICH IS A VERY HARSH AND OLD RATE. THERE WERE SO MANY MISTAKES IN THE INITIAL FIVE YEARS OF THE GST AND THESE WERE NOT EVASION OF TAXES, HENCE THE AMNESTY SCHEME SHOULD EXIST TO MAKE SUITABLE CORRECTIONS AND AVOID THE MANY NOTICES Retail Policy, which will entail supporting current technology and quick infrastructural assistance in order to facilitate modernisation and digitisation. Predictive Pricing Needs Regulation Selling prices at both online and offline platforms should compulsorily be made the same, to avoid diversion of sales. The products marketed online should be different from those marketed in the distributive trade. Every manufacturer or brand should be asked to manufacture a different line of articles, with different specifications, with different article numbers for both online and offline platforms. Manufacturers and brands should be directed to not keep their MRPs inflated, to give heavy discounts, since it misleads the consumer and he refrains from buying from offline stores, seeking the same discounts. Manufacturers are setting unrealistic targets for distributors, and pushing stocks, forcing them to sell at a loss. It has to be mutually agreed upon, considering the market potential from time to time. Manufacturers are squeezing credit facility to the distributors, but forcing them to sell on credit to create a wider market to increase their sales. It should not be forced. Manufacturers and industries are often seen supplying to consumers directly at a much cheaper price sometimes, than to the distributors, causing loss of face to the distributor as well as sales and profits. Miscellaneous issues Collateral Free Loans – All traders are cash strapped today and need infusion of funds to start business activities. In this regard, we suggest that the traders be provided collateral free loans. The amount of credit can be based on the average of the taxes paid by the business entity over the last ten years. This will assure the lenders of the genuineness of the traders and ease any apprehensions that they may have. Restructuring of interest rates by banks as per current RBI rates – Most loans provided by the banks have a fixed rate of interest which is decided at the time of loan disbursement or renewal. The RBI has lowered the rates and ter three days there is no facility to print or get a copy of the E-Invoice from the GEPP Portal. This technical restriction needs to be solved. Functionality of transfer of the cash ledger balance from one distinct person to another distinct person i.e. GSTIN with the same PAN has not yet started on the GST Portal. The SOP needs to be issued for the GST registration application. To avoid compliances of Form GST ITC04 the principle manufacturer has started manufacturing on its own, which is taking away jobs of the artisans. The sector and the customer will benefit greatly from the implementation of a reduced GST for consumer durables and the reduction of compliance expenses. Additionally, the retail industry anticipates the introduction of a National
36 | B W BUSINESSWORLD | 06 May 2023 The author is a development economist and former Secretary in the Government of India POINT OF VIEW / MSMEs By Aruna Sharma of Plastic Waste Management (Amendment) Rules 2022, on all kinds of products imported in plastic packaging, including pulses, makes it obligatory for such importers to obtain registration with the Central Pollution Control Board (CPCB) and later mandatorily file for disposal of plastic packaging. While the environmental concerns of the Union government are laudatory, this mandatory obligation will create several hurdles in the import of pulses and defeat the goal of Ease of Doing Business. The customs authorities had made it mandatory for importers to obtain Extended Producer Responsibility (EPR) registration on the CPCB portal. In the absence of such registrations, the consignments will not be allowed to be cleared. Pulses are essential commodities and play a vital role in the country’s food and nutrition security. Furthermore, the import requirement of pulses is bound to increase steeply from March 2023. We strongly plead that importers of pulses be exempted from the mandatory EPR registration. Importers of pulses import cargo in plastic bags and the pulses are sold to wholesalers, processors and retailers in the originally packaged plastic bags. The importers are not involved in the disposal of the plastic bags and it is not possible for them to keep track of the end use of the plastic bags as they change hands multiple times across the supply chain. Hence, importers should not come under the purview of the notification for mandatory EPR registration. Granting the said exemption will also facilitate the Ease of Doing Business and streamline the import of pulses. Thus, to ensure that the rhetoric of inclusive growth becomes a reality, 2023 is the year to pull the trigger. Resolving the seven issues discussed will enable MSMEs to continue to increase their contribution to the GDP and most importantly, provide sustainable quality employment. The MSMEs need to be hand-held to enable them to achieve the growth story where ‘no one is left behind’. therefore, interest rates should be lowered by the banks forthwith. However, the ground reality suggests otherwise, as per feedback received from the trading community. It is therefore, desirable that banks be instructed to lower interest rates immediately as per RBI guidelines. The immediate lowering of interest will greatly help traders with their financial outlook. Lowered Interest Rates – Small and medium scale traders are most often the critical link or backbone in the distribution channel of goods and services. They hold stocks to cater to the end consumer and often carry greater credit risk than that of the manufacturers. Probably due to this, banks and financial institutions offer loans at a higher rate of interest compared to manufacturers. In spite of this, trading communities have far fewer NPAs in comparison to others. Abolishment of RTGS and NEFT Charges The Reserve bank of India, with a view to push digital transactions, had asked banks not to charge their customers for RTGS/ NEFT transactions on 1 July 2019. In reality, this has not been enforced. Banks need to be advised to provide these services to their customers without any charges. Plastic Waste Management Rules (Amendment) 2022 A recent notification of the Custom Department Invoking Rule 6 of Schedule-II Photograph by Olegbreslavtsev
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38 | B W BUSINESSWORLD | 06 May 2023 discussions and then move ahead for deliberations for a consensus. Crypto the virtual digital asset, had a long winter of slides and negative gains when a series of events at exchanges led to a decline in the value of this asset class. Like the popular and famous puppet show of Rajasthan in which the ‘Kathputli’ (marionette) resurrects every time and never dies, virtual digital assets too have proved to be the hydra that never dies. Even though investments in VDAs are on a low scale, the number of people who have trust in virtual digital assets, are still large. The answer to a Parliamentary question in the Rajya Sabha (unstarred question no 3097 on 28-3-2023) on direct tax collected from the 30 per cent tax deducted at source on payments made in transferring virtual digital assets, was Rs 157.9 crore for FY 2022-23. Even so India is yet to issue a regulation for VDAs. A piecemeal approach will not work when there are around 18,000 crypto currencies and 460 crypto-exchanges whose businesses are taking a hit because of a lack of a regulatory framework from an average daily trade volume of $90 billion. Thus, G20 is a good platform for learning from countries who have initiated regulations and addressing international concerns. In a notification dated 7 March 2023, under Prevention of Money-laundering Act 2002 (15 of 2033) the Government of India has brought cross border transfers in exchange between virtual digital assets and fiat currency, under its fold. This is a welcome development. The need is to graduate from piecemeal directives to a comprehensive regulation in India. The G20 is an opportunity for addressing the concerns of the Central Bank on the destabilising effect of VDAs on monetary and fiscal stability and to ensure acceptance by investors exchanging the many existing VDAs of countries across the globe. The Central Bank Digital Currencies should not be confused with virtual digital assets. The CBDC is the digital format of legal tender that has a fixed value and like money in the wallet, will not attract any interest. Its spectacular development for wholesale use will reduce the cost of printing notes, transHE G 20 PRESIDENCY has put on the table the need for a global consensus on virtual digital assets (VDAs) so that a coherent regulatory framework may emerge for addressing prevailing apprehensions and concerns. This consensus will enable the drawing up of a policy and complaint framework for virtual digital assets. Many countries have taken a lead in drawing up such a policy and attracting technology innovations within a regulatory framework. Apprehensions about cross border transactions and money laundering need a common understanding among countries to enable them to track, deduct and act upon such issues. The best definition of virtual digital assets that has emerged across the globe is in the General notification 1350 of South Africa dated 19 October 2022 in the Staatskoerant, Financial Sector Conduct Authority under Financial advisory and intermediary services Act 2002. Do not miss the title of the Act. It is an advisory Act where ‘crypto assests’ are defined as digital representation of value that is not issued by a central bank but is capable of being traded, transferred or stored for payment, or investment by applying cryptographic techniques using a distributed ledger. Thus, this definition distinguishes clearly between all asset classes and is also distinct from that of the Central Bank Digital Currency (CBDC). It however, allows VDAs to be used as an instrument of assets for trading, transferring and storing as an investment and also for payments. Crypto is therefore, declared a ‘financial product’. This clarity of definition can be the guiding factor for the G20 to initiate G20 & Crypto Issues COLUMN By Aruna Sharma T
06 May 2023 | B W BUSINESSWORLD | 39 l Exchange services between one or more forms of virtual assets; l Virtual asset transfer services; l Virtual asset custody and management services; l Services related to the virtual asset portfolio; l Services related to the offering and trading of virtual tokens. Besides VARA is also vested with executing the penalty, suspension or cancellation of permit in case of violations. Dubai is targeting to become a hub for the Web 3.0 by having facilitating policies for the digital assets space and the United States is focusing on continuing to be competitive in this space. In January 2020, Singapore’s Payment Services Act came into effect in response to the Financial Action Task Force’s 2018 update to its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) cross-border risk guidelines for crypto currencies. The Payment Services Act is a flexible framework for the regulation of payment systems and payment service providers in Singapore that establishes registration requirements along with AML and CFT guidelines for cryptocurrency businesses. The war between Russia and Ukraine witport, logistics and security. In retail, with a digital payment system widespread on a real time basis (UPI is free of cost as repeatedly highlighted by the National Payments Corporation of India – the NPCI) the CBDC will have less takers unless it enables cross border ease of transfer. The virtual digital asset – the crypto on other hand – is speculative in nature and thus, runs the risk of speculations. The above quoted best definition I came across covers this aspect by completely distinguishing between the two. Another good initiative is by Dubai, who has a law to regulate virtual assets (March 2022). The clarity has triggered Dubai’s move to become a key player to work its way forward for responsible business growth. The Dubai Virtual Asset Regulatory Authority (VARA) has been established to enable the growth of the sector and also protect investors by enabling them to take informed decisions. The VARA will create an ecosystem to make rules to conduct and authorise VDAs: l Operating and managing virtual assets platforms services; l Exchange services between virtual assets and currencies, whether national or foreign; The G20 is an opportunity for addressing the concerns of the Central Bank on the destabilising effect of VDAs on monetary and fiscal stability and to ensure acceptance by investors exchanging the many existing VDAs of countries across the globe Photograph by G20 Secretariat,MEA,Government of India
40 | B W BUSINESSWORLD | 06 May 2023 COLUMN By Aruna Sharma of money generally within particular countries. Chainanalysis reports that many residents use P2P crypto currency exchanges as their primary on-ramp into crypto, often because they don’t have access to centralised exchanges. The report also says many residents of these countries turn to crypto to preserve their savings in the face of currency devaluation, as well as to send and receive remittances and carry out business transactions. However, India is still focusing on how to tax, be it direct or indirect, by not defining the virtual digital asset class. If it is an asset, then taxing the entire transaction and not enabling an offset will not be in line with the law of the land. The same applies to the indirect tax on GST. Putting a higher slab of tax of 30 per cent and one per cent TDS without defining crypto, needs clarity. The only thing that is clear is that the VDA will not be legal tender in India and digital currency (CBDC) will be issued by the Central Bank ie. the RBI in India. The advertisement standards have made clear the need to put a disclaimer so that the investor takes informed decisions. Will this delay make India miss out on the opportunity of being a hub for Web 3.0? Moreover, the decentralised system that the blockchain technology offers is a solution to cyber-attacks. The Medipedia Token (MEP) agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including crypto such as bitcoins. The Economic and Monetary Affairs Committee adopted, with 31 votes to four and 23 abstentions, its negotiating position on new rules on crypto-assets. They aim to boost users’ confidence and support the development of digital services and alternative payment instruments. It is an opportunity that should not be lost. nessed effective use of virtual digital assets to either have effective sanctions or provide assistance on a quick mode. Another use of these regulations is to document fraud/cyber-attack/misuse incidence of digital assets from the perspective of whether it is a design fault or technology or maladies or ignorance of the client/ investor and what check/ correction measures can be adopted. Cryptocurrencies in the EU New rules to boost benefits and curb threats: lUniform legal framework for crypto-assets in the EU lConsumer protection and safeguards against market manipulation and financial crime lInclude crypto-assets mining in EU taxonomy for sustainable activities by 2025 to reduce carbon footprint Chainanalysis said the purpose of the index is to capture crypto adoption by “ordinary people” and to “focus on use cases related to transactions and individual saving, rather than trading and speculation.” The metrics are weighted to incorporate the wealth of the average person and the value The author is a development economist and a former Secretary to the Government of India Technology & Policy Concerns that Could be Discussion Points at the G20
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42 | B W BUSINESSWORLD | 06 May 2023 UST AT THE START of this century, we never imagined that our entire financial assets would be managed with our mobiles. We never imagined that phone commerce will replace physical shopping. We never imagined remote and hybrid work possibilities. With the convergence of Artificial Intelligence (AI), machine learning (ML), Augmented Reality - Virtual Reality (AR-VR), drones, eVTOLs and other autonomous vehicles, the way we know of what is currently – shopping – is bound to disappear in the next 20 years. Robot Sales Assistants Artificial Intelligence algorithms will automate in-store operations of whatever is left as stores. It can further replace sales personnel with robots to assist customers, make digital payments enhanced and automated and stocks replenished with real time tracking of shopping trends and orders. Robots and drones will work seamlessly to restock store shelves to optimise what’s fast moving! Before we think further, did we say consumers will shop? In the next few years brain-computer interface (BCI), a technology that enables direct communication between a human brain and a computer, will be used to control devices and sensors. Imagine a scenario where humans would control their digitally wired surroundings, using just their thoughts. Shopping will take on a different meaning with BCI – users could browse products and make purchases using only their thoughts. This could make the world inclusive, by making it accessible for people with disabilities or physical impairments. BCI Ordered Merchandise By analysing a customer’s brain signals, retailers can receive insights into their needs, wants, emotions, preferences and push products or services accordingly. This could change the way we market, using the conventional demand-supply theory. The newer pricing power could shift to a pricing basis of what is the need vs want, and intensity of such an emotion. In addition, it is completely possible that 3D printing will be advanced enough to print almost any product on demand. It could change the way we perceive large manufacturing bases. This surely would impact the way people shop, as they won’t have to wait for products to be manufactured and shipped like current processes. Powered by batteries, Electric Vertical Takeoff and Landing (eVTOL) aircraft is an electrically powered aircraft (instead of usual jet engines), that can take off and land vertically (like a helicopter). Imagine you just BCIordered some decor item and some FMCG SKUs from your shopping app. An eVTOL takes off from a remote location to get to a dark-store, avoiding all traffic. At that dark-store, they have 3D-printed your decor SKUs, and the robots pick up the FMCG SKUs, and loads them on to the eVTOL. The eVTOL delivers your order, and the process is complete. If you had asked for a window-sill delivery, mini drones will deliver precisely at the GPS mapped coordinates in your apartment building window sill. At J 2045: Machines Will Shop for Humans (A)muse & Musings Srinath Sridharan & Shailesh Haribhakti
06 May 2023 | B W BUSINESSWORLD | 43 cities. Add mini food processing units as a value chain in the same locations. With developments in AR and VR technology, customers can have immersive shopping experience without stepping out of their chair – be it trying on clothes that they want to order or see how their home decor would look. Smart Refrigerators Human-inhabited spaces – homes, offices, malls, hospitals, etc. will have robots and sensors with distinct roles. Your refrigerator will automatically order to replenish the depleting stocks on its shelves. Cameras and sensors embedded in your refrigerator will adjust your stock to ensure nutritious alternatives, basis your medical records. Similarly, your medicine cabinet will alert you, if you miss taking your prescribed medication dosage, and will reorder medicines for depleting stocks. Sensors in the toilet commode will scan human waste for potential health alerts. Homes will have sensors to keep themselves in good condition – say issues like water leakage, pest control breakage of any walls or tiles, etc. can be assessed by the sensors to alert you or service providers. Emerging technologies such as renewable energy, carbon capture and storage, and smart grid systems, could help reduce greenhouse gas emissions and mitigate the impacts of climate change. In the next 30 years, humans may not just buy, but technology could shop on their behalf. Humans will want to live where technology serves them, and not vice versa. ‘Goodfor-society’ objectives have to be defined by what positive outcomes would enable better quality of living. Societal implications of new technologies and the social cost of technologies have to be factored in. The challenges for society and regulators would be how to manage data lakes, consumer intent, privacy constraints. Improvements to quality of life are welcome, as long as they bring that to everyone, and not just a few. Importantly enough, technologies should not deplete natural resources. It is to be to ensured that emerging technologies are developed and used in an ethical and responsible manner, with a focus on improving the well-being of all members of society. some point in the future, eVTOL will shape into autonomous vehicles (AV). By that point in time, with drop in technology costs and increased volumes, AVs could be cheaper and safer than human-driven vehicles. Indoor Farming The concept of food production could also improve with technologies. We could see more indoor farming to produce food, hyper-locally, in places which could get vacant with technological disruption, and with vertical wall gardens all around our Shailesh Haribhakti, is an independent director on corporate boards Srinath Sridharan is an author, policy researcher & corporate advisor In the next 30 years, humans may not just buy, but technology could shop on their behalf. Humans will want to live where technology serves them, and not vice versa. ‘Good-for-society’ objectives have to be defined by what positive outcomes would enable better quality of living. Societal implications of new technologies and the social cost of technologies have to be factored in Photograph by Javvani
44 | B W BUSINESSWORLD | 06 May 2023 Urban Indians reposed more faith in government than those surveyed in 20 other markets worldwide. Tech companies, banking and the energy sectors are also more trusted in India than elsewhere Trust in Government Highest in India, says Ipsos Survey I NDIA is not the only major economy that will go to polls in the year ahead, but it seems to be the only “market” whose educated, urban population, still trusts the government and reposes faith in its intentions. An Ipsos online survey in 21 nations across both the developed and developing world found most urban Indians saying “aye” to the leadership, intentions and strategies of the government of the day, even as a trust deficit in governments became evident in most other parts of the world. Indians – at least urban, educated Indians – also trust their institutions and corporate sector more than their counterparts do in other parts of the world. The Ipsos Global Trust Worthiness Monitor 2022, released in mid-April, indicates that worldwide a trust deficit has crept into governments and some sectors of the economy, particularly social media companies and oil and gas companies. The online survey by the market research and polling company that operates in 90 markets, also shows that trust levels were polarIPSOS SURVEY ised for some sectors like financial services and banking. In India though, distrust levels in institutions seems much lower. Urban Indians displayed high levels of trust in all the 11 institutions and organisations covered by the Ipsos survey. Trust in the government among urban Indians was the highest across all the 21 markets covered by the online survey, with 52 per cent of those surveyed reposing their faith in government. Worldwide only 22 per cent of those surveyed considered their governments trustworthy, while 45 per cent of the respondents to the Ipsos survey found their governments to be untrustworthy. Among the most trusted sectors in India are technology companies, banking organisations and the energy sector, each of which won the approval of 57 per cent of those surveyed. In India 52 per cent of urban Indians found the oil and gas sector trustworthy, compared to 23 per cent across all the other markets covered in the survey. As much as 46 per cent of urban
06 May 2023 | B W BUSINESSWORLD | 45 Institutions/ Organisations India Trustworthy India Untrustworthy Global avg. Trustworthy Global avg. Untrustworthy 1 Technology Cos 57% 16% 33% 22% 2 Energy 57% 17% 28% 29% 3 Banking 57% 15% 29% 30% 4 Retail 55% 16% 31% 19% 5 Financial Services 54% 16% 28% 30% 6 Pharmaceuticals 53% 18% 34% 27% 7 Consumer Packaged Goods 52% 18% 28% 23% 8 Govt 52% 23% 22% 45% 9 Oil & Gas 52% 16% 23% 37% 10 Food and Drink 51% 16% 33% 22% 11 Social Media Companies 46% 21% 22% 38% Factors influencing trust For urban Indians, the key barometers of trust include among others, openness and transparency about what an organisation or institution does (33 per cent), if it is environmentally sustainable (33 per cent) and if it behaves responsibly (29 per cent). “For global citizens, the most overriding factor was, if it is reliable and keeps its promises (36 per cent), if it is open and transparent about what it does (35 per cent), and if it behaves responsibly (31 per cent), etc.” the Ipsos Press statement says. Indians consider social media companies trustworthy, compared to 22 per cent of global denizens. “Netizens trust technology companies most, followed by organisations and institutions in energy, banking, retail, financial services, pharmaceuticals, consumer packaged goods, govt, oil and gas. Most of these organisations work within a regulated market framework with conformance to laws and guidelines. Institutions are built on a bedrock of values, ethics, and culture, which build their ethos,” says Amit Adarkar, CEO, Ipsos India. Methodology The findings are the outcome of an Ipsos online survey conducted between 26 August and 9 September 2022. The survey was conducted via the Ipsos Online Panel system covering Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Great Britain, Hungary, India, Italy, Japan, Poland, Saudi Arabia, South Africa, South Korea, Spain, Sweden, Turkey, and the United States. The results, says an Ipsos Press statement, comprise an international sample of 16,017 adults aged 16-74 in most countries and aged 18-74 in Canada, South Africa, Turkey and the United States. Approximately 1,000 individuals participated on a country-by-country basis via the Ipsos Online Panel, except in Argentina, Hungary, India, Poland, Saudi Arabia, South Africa, South Korea, Sweden and Turkey, where a sample of approximately 500 respondents were taken for each nation. “The samples in Argentina, Australia, Belgium, Canada, France, Germany, Great Britain, Hungary, Italy, Japan, Poland, South Korea, Spain, Sweden, and United States can be taken as representative of their general adult population under the age of 75,” the Press release says. The samples in other countries like Brazil, China, India, Saudi Arabia, South Africa and Turkey “produce a national sample that is more urban and educated, and with higher incomes than their fellow citizens,” Ipsos clarifies in its statement. 52% of urban Indians find government trustworthy
46 | B W BUSINESSWORLD | 06 May 2023 How does govt stack up on trust parameters? Urban Indians have given the government high trust scores across all attributes. Corporate leadership Corporate leadership attributes that matter to urban Indians include the following: l I trust business leaders to tell the truth (64 per cent); l I trust business leaders to care for the environment (64 per cent); 33% 33% 29% 28% 27% 23% 19% 18% 17% 16% 13% 0% 20% 40% 60% 80% 100% If it is open and transparent about what… If it is environmentally sustainable If it behaves responsibly If it provides good value for price If it provides good customer service If it is reliable/keeps its promises If it does what it does with the best of… If it is good at what it does If it shares my values If it would try to take advantage of me… If it is well led 36% 35% 31% 27% 22% 20% 18% 16% 15% 11% 9% 0% 20% 40% 60% 80% 100% If it is reliable/keeps its promises If it is open and transparent about what… If it behaves responsibly If it provides good value for price If it is environmentally sustainable If it provides good customer service If it is good at what it does If it does what it does with the best of… If it shares my values If it is well led If it would try to take advantage of me if… 33% 33% 29% 28% 27% 23% 19% 18% 17% 16% 13% 0% 20% 40% 60% 80% 100% If it is open and transparent about what… If it is environmentally sustainable If it behaves responsibly If it provides good value for price If it provides good customer service If it is reliable/keeps its promises If it does what it does with the best of… If it is good at what it does If it shares my values If it would try to take advantage of me… If it is well led 36% 35% 31% 27% 22% 20% 18% 16% 15% 11% 9% 0% 20% 40% 60% 80% 100% If it is reliable/keeps its promises If it is open and transparent about what… If it behaves responsibly If it provides good value for price If it is environmentally sustainable If it provides good customer service If it is good at what it does If it does what it does with the best of… If it shares my values If it is well led If it would try to take advantage of me if… Factors influencing trust among urban Indians Factors influencing trust among global citizens Attribute Agree Disagree 1 The govt is good at what it does 66% 12% 2 The govt does what it does with the best of its intentions 63% 15% 3 The govt is well led 65% 12% 4 The govt behaves responsibly 67% 12% 5 The govt is open and transparent about what it does 63% 15% 6 The govt is reliable & keeps its promises 64% 13% 7 The govt shares my values 63% 12% 8 The govt could take advantage of me if it could 67% 11% 9 The govt is environmentally sustainable 65% 12% IPSOS SURVEY l Business leaders are overtaking politicians as a force for progressive change in the world (64 per cent); l Most business leaders are over-paid (66 per cent); l Business leaders have a responsibility to speak out on social and political issues affecting my country (68 per cent); l Business leaders generally behave in an ethical way (64 per cent); l Business leaders are a force for good in the world (66 per cent). Corporate purpose The survey indicates a trust deficit among Indian consumers about the seriousness of the corporate sector in the issues that they champion. Consumers, the survey shows, expect brands to play a more active role in giving back to society. As much as 65 per cent of the urban Indians polled believe that too many businesses “use the language of changes to help the environment or to promote greater equality without committing to real change”. As much of 68 per cent of the survey respondents felt that in difficult times corporates were prone to put profit before purpose. A whopping 66 per cent of those surveyed believe that focusing on purpose distracts senior management and their attention to the bottom line. As many as 62 per cent of Indian consumers felt that fixing society’s problems was the responsibility of the government and not that of business. Urban Indians surveyed (a whopping 68 per cent) also felt that society was so divided at the moment that companies would need to pick a side to be able to thrive. As many as 65 per cent were of the opinion that purpose statements only really mattered to a company’s own employees. The vast majority of 69 per cent of urban Indians believe that in the future, the most successful brands will be those that make the most positive contribution to society beyond just providing good services and products. An even greater number of 72 per cent of those surveyed said it was possible for a company to both make a profit and behave responsibly and 69 per cent of respondents expected companies to take a stand on social issues that matter to consumers. As Adarkar points out, "There is a huge emphasis on ethics and a greater sense of expectation from corporates in giving back to society. Sustainability is emerging as a strong area, in reducing adverse impact on the environment, from the citizens’ standpoint." Even so, in comparison with denizens of other parts of the world, urban Indians seem to have more faith in the nation’s companies, institutions and the government.
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48 | B W BUSINESSWORLD | 06 May 2023 IN REMEMBRANCE/KESHUB MAHINDRA/ by Tarun Das T HIS PIECE IS ABOUT the ‘Legacies’ of Keshub Mahindra. What he believed in, what he said, what he practiced – and how all of this continues to be very relevant, now and in the future. Some of the points are based on personal conversations over the years and some on his speeches and interviews. Keshub Mahindra is a permanent fixture in our lives because his ideas and principles are eternal. At a personal level, he was soft-spoken. Made his views known without raising his voice. And, what was very special was his modesty. He was always, ready to apologise. To say sorry. This reflected his deep humility. A true learning for all of us. What gave him “Joy”? In his own words, to “create”. Create products, create jobs, create new ways of making progress. But, always “Create”. This quality of Keshub Mahindra is the story of his life and work, which brought Mahindra and Mahindra to the size and stature it achieved and is an example for all. One aspect of his character was reflected in an answer he once gave to a questioner who complimented him on building a great Brand, Mahindra and Mahindra. His response was vintage Keshub Mahindra, “I did not create the Brand. The Brand was The writer is a Former Director General of the Confederation of Indian Industry (CII) KESHUB MAHINDRA LIVES ON … Keshub Mahindra believed that business must be involved in “development”. And, this, of course, continues to hold true. He was deeply concerned that past failed policies had left many villages without water, food and housing. Mahindra believed that industry must, therefore, supplement the efforts of government, writes Tarun Das Chairman Emeritus of the Mahindra Group (9 October 1923 – 12 April 2023) Photograph courtesy: Mahindra & Mahindra Ltd.
06 May 2023 | B W BUSINESSWORLD | 49 built by our people in the Company. They are the Brand Builders.” Credit for others, not for himself. He spoke of every company being “People Centric”. They are the engines of growth in the company. Not the person who is the face of the Company. And, this growth moves in different ways and different directions. Quality of the products. Quality of the service. Quality of the Reputation of the Company. Corporate Governance, which included ethics and values, was an especially important issue on which he spoke and seriously practiced. It was a core principle of his and it showed in the way he ran and led his company or participated in the boards of other companies. For many, Corporate Governance is just a slogan. For Keshub Mahindra, it was a core principle which gave Mahindra and Mahindra the reputation and respect from all. Ethical Governance were the words he used. A continuing agenda. Another inspirational characteristic of this amazing man were the words he used with younger people and colleagues, “Please Dream. Impossible Dreams can come true”. This motivated many to think beyond themselves, to have higher and higher aspirations, and to achieve. Dreams could and would be converted into reality given the vision and the application. This was his belief. This is his legacy. He was questioned about “retirement”, an issue that everyone faces at some time or the other, in their lives. Keshub Mahindra used to emphasise the importance of an outside interest, beyond work, so that post-retirement, life would be rewarding. In his own case, his interests were multiple – photography, reading, writing, gardening and, yes, cooking. Again, a lesson for all. He believed in “Long Term Relationships”. For him, friendship, partnership, were not short- term issues. Lifelong relationships were the order of the day and, often, since he was older, he became both a friend and a Mentor. Friends turned to him for the huge value Keshub Mahindra brought to them, listening, interacting, guiding, and always doing so gently. Going beyond the personal issue, to industry matters, he believed that business must be involved in “Development”. And, this, of course, continues to hold true. He was deeply concerned that past failed policies had left many villages without water, food and housing. Industry must, therefore, supplement the efforts of government. He said that “making money” was not the be-all and endall of business aims and objectives. He looked beyond to the contribution industry could make to society as a whole, especially the poor and particularly the rural poor. He believed that money must be a means to contributing toward a better life for all. His commitment to “Openness” and the “Open Economy” was strong and firm. But, he was also conscious that there was no such thing as “free competition”. Even the most powerful economies imposed “anti-dumping duties”, etc. he said. This was the reality. Competition is good but national interest is paramount. He spoke of the misunderstanding in the media about the ‘Bombay Club’ which had tried to point out how issues such as labour laws, interest rates, inflation, corporate regulation, etc. need review to make Indian industry competitive. He once said, “we should have spoken and explained to the media” and that the issues presented to government had been well-received. He was of the view that there was no need to be afraid of MNCs but that the policies of the previous 50 years needed to be recognised and corrected. Industry needed the right to change practices, using the best technology, so as to be globally competitive. He was a great believer in the automotive sector as a multiplier for development and growth, but not as a luxury industry as past policies had seen this sector to be. He appreciated the changed policies reflecting this understanding. When he spoke of India, he spoke of its great strengths, its huge promise and potential and a very positive future. So, Keshub Mahindra definitely “lives on” because whether we speak of his personal attributes or his views on industry, responsibility or competition, or the future of India, his messages are strong and true even after he has passed away, and will be so, for long after. This man was a legend in his lifetime and his thoughts, words, life will remain with us forever. Keshub Mahindra lives on. Competition is good but national interest is paramount. He spoke of the misunderstanding in the media about the ‘Bombay Club’ which had tried to point out how issues such as labour laws, interest rates, inflation, corporate regulation, etc. need review to make Indian industry competitive. He once said, “we should have spoken and explained to the media” and that the issues presented to government had been well-received
50 | B W BUSINESSWORLD | 06 May 2023 N A WORLD fascinated with instant gratification, the Atiq episode seems to have conflated instant justice with the thrill of consuming instant noodles! In all the noise and fury of the past few days I felt it was best to let the froth of opinions – most of them political – subside before we could dispassionately look beyond the multivariate range of emotions which cloud the judgement necessary for an unbiased analysis of what is unarguably a very complex situation. Popular press is merely stating the obvious, i.e., our criminal justice system is broken, religious overtones, state sponsored vigilante justice, etc. Instead, we need to calmly introspect – if at all that is feasible – on three core issues. One, what makes us as a people so delirious with joy at the extra judicial and staged killings of criminals? Two, what makes us normalise the existence of such criminals as law makers? Three, is this the best way to clean up and eradicate crime? If we have the collective courage to handle the truth, the answers to these questions will make us think where we are headed as a nation. That many people approve of criminals being eliminated by the police is a reflection of the 30 years of free run that Atiq enjoyed as a lawmaker, and a system which perpetrated such a wanton assault of democracy. Coupled with the belief that the normal criminal justice system is incapable of delivering results, retributive justice by any means is being welcomed. Being a reflection of citizens’ will, this narrative suits politicians as well. Citizens don’t ask though what makes us normalise the likes of Atiq – and there are countless more roaming around in parliament and legislative assemblies – being elected to represent us. Is it our own apathy to get involved in the cleansing process or even raise our voice? The Indian middle class exAtiq is merely a symbol I GUEST COLUMN hibits a remarkable indifference to the common good, an apathy in upholding the fundamental principles of democracy and a vacuousness in its public spiritedness. This numbed social conscience – due to self interest, fear or greed – and consequent erosion of national character is the key contributor to our situation today. And most alarmingly, this trait of selfish disinterest, based on the ‘free rider’ theory, and groveling to authority is evident all across society. This provides the political class with a virtual walkover to involve criminals in our polity. The third point is more consequential for the future. Is this the best way to clean up crime? Perhaps not. But I do empathise with the argument of the state using unconventional means when violence becomes ingrained amongst a section of the society, existing law and order mechanisms prove inadequate and the existence of the Prabal Basu Roy Where we are headed as a nation is worth thinking about provided we have the collective courage to handle the truth