COSTLIER EVs? Subsidy cuts and rollout challenges are likely to decelerate mass adoption of two-wheelers NINE YEARS OF MODI REGIME INDIA’S SUPER CFOs Rs 150 (L to R) R.C. BHARGAVA,Chairman, Maruti; RAJESH JEJURIKAR, Executive Director & CEO (Auto & Farm Sector), Mahindra Group; RAJEEV CHABA, CEO Emeritus, MG Motor India; SOHINDER GILL, CEO, Hero Electric India; SANJAY BEHL, CEO & Executive Director, Greaves Electric Mobility Insights From EV Manufacturers & Stakeholders www.businessworld.in RNI NO. 39847/81 I 17 JUNE 2023
JULY 19-20, 2023 When transformative technologies meet commerce & currency Aloft New Delhi, Aerocity #BWweb3 Summit & Awards 2023 Digital Innovation Oficer TVS Motor Company ABHAY TANDON Chief Marketing Oficer Britannia AMIT DOSHI Co-Founder & CEO Coinswitch Venture ASHISH SINGHAL CDO Indusind Bank CHARU MATHUR CIO Vedanta CHETAN TRIVEDI MD & CEO Utkarsh Small Finance Bank GOVIND SINGH Executive Director and Group Chief Information Oficer, Dalmia Bharat GOVIND SINGH Head-Growth & Retention The Good Glamm Group HARLEEN BHATTI Group CDO Jindal Steel & Power INDRADYUMNA DATTA President Kyndryl India LINGRAJU SAWKAR Chief Marketing Oficer Baggit India MAHUYA CHATURVEDI Chief Information Oficer EaseMyTrip.com MANOJ SRIVASTAVA SVP & Chief Digital Oficer - Consumer Businesses Adani Group NITIN SETHI Deputy Managing Director and Head of Digital Banking State Bank of India NITIN CHUGH CIO - Enterprise Technology Group, Sony Pictures Networks RAJ MOHAN SRINIVASAN Head of Marketing Motorola SHIVAM RANJAN Principal & CTO 100x.vc VATSAL KANAKIYA Founder and Managing Partner IvyCap Ventures VIKRAM GUPTA Chief Executive Ofice Carzonrent India YOGENDER VERMA President and Chief Digital Oficer Hindalco Industries JAGDISH RAMASWAMY For speakership: Mahek Surti: [email protected], +91 98923 05192 For General Enquiries: Baani Chauhan: [email protected], +91 84476 77166 For Partnership: Aparna Sengupta: [email protected], +91 99580 00128 For Nominations: Biren Singho: [email protected], +91 87001 66424 Scan to Register Scan to Nominate EVENT PARTNERS REGISTER NOW POWER SPEAKERS
C F O (L to R) ABHISHEK GUPTA, Oyo; AJAY AGARWAL, Security Printing and Minting Corporation of India; ANURAG MANTRI, Jindal Stainless; DINESH BANSAL, Motorola Mobility; KABIR AHMED SHAKIR, Tata Communications; KEYUR DOSHI, Fincare Small Finance Bank (L to R) MAYANK KHANDELWAL, NEC Corporation India; NITIN SOOD, PVR; PIYUSH MAKHARIA, StockGro; POORNIMA SUBRAMANIAN, Reliance Nippon Life Insurance; PRABHAT AGARWAL, GHV Advanced Care; PRATAP DARUKA, Tredence Analytics Solutions ACHARYA, NIXI; SURAJIT CHAKRABARTTY, MedGenome Labs; VINOD KUMAR MISHRA, Petronet LNG HIEF FFICERS UTURE Super CFOs who helped their companies overcome macroeconomic challenges (L to R) RAJIV KUMAR GOYAL, Applied Solar Technologies (India); SANGRAMJIT SARANGI, SBI Life Insurance Company; SANJAY UPADHYAY, Deepak Nitrite; SANTANU www.businessworld.in RNI NO. 39847/81 I 17 JUNE 2023
ustainable The World Conclave 2023 Presents India's Big Leap with G20 Presidency #BWMostSustainableCompanies In association with fifffflffiflfl fifffflffiflfflfi fflffiffl flflffl Dr Annurag Batra Chairman & Editor in Chief BW Businessworld & Founder, Exchange4media Sunil D'Souza CEO & MD Tata Consumer Products Miniya Chatterji CEO Sustain Labs Paris Ruhana Zariwala Global Head - Sustainability Cipla Santhosh Jayaram Global Head - Sustainability HCL Tech Shipra Misra CEO & MD Driiv Tejashree Joshi Head - Environment & Sustainability Godrej & Boyce Mfg. Co. Ltd. Juhi Gupta Director, Sustainability Tetra Pak South Asia Neelam Gupta Vice President Group Portfolio - India Capgemini Paul Abraham President Hinduja Foundation Ratnesh Jha Executive Director UN Global Compact Network India Rajneesh Chopra Global Head - Business Development VA Tech WABAG Limited Jaya Vaidhyanathan CEO BCT Digital Thakur Pherwani Chief Sustainability Oficer TVS Motor Company Gayatri Divecha Head – Good & Green Godrej Industries Limited and Associate Companies Nitin Bassi Senior Programme Lead Council on Energy Environment and Water (CEEW) Neelesh Agarwal Founder Calculus Carbon Mili Majumdar Managing Director GBCI India and Senior Vice President US Green Building Council Rahul Nene Head of Sustainability Huhtamaki India Rinika Grover Head Sustainability and CSR Apollo Tyres fifffflffi flffffl fifffflffiflfflfffflflfflfflff flff ffl ffffl fflfffflffl ffffl ffl fffflfflffffl ffl fflffffifl ffl ffl ffl ffi ffifi ffi ffiffiffiffi ffi ffl ffi ffiffiffiffi ffi ffiffiffiffi ffiffl ffiffiffiffi ffi ffiffiffiffi ffi ffiffiffiffi fifffflffiflflflfl fflfflfi ASSOCIATE PARTNER
6 | BW BUSINESSWORLD | 17 June 2023 Dear Readers, ON 26 MAY 2023, the Narendra Modi government completed nine years of office amidst a media blitz, as the Press and political pundits got about speculating on the outcome of the 2024 general elections. We, here at BW Businessworld look back at the high points of Prime Minister Modi’s nine years in office too, but with insights from industry stalwarts on what has changed in the spheres of business and the economy. We also map the milestones of PM Modi’s leadership in a graphic illustration. This issue of the magazine also features the winners of the sixth edition of BW CFO World’s Best CFO & Finance Strategy Awards. The Best Chief Financial Officers demonstrated their acumen by successfully steering their firms through macroeconomic headwinds to ensure sustained growth and value creation. As the line between the roles of the CFO and CEO blurs, CFOs tend to play a more active role in realising the CEO’s vision of the business. As they exhibit the vision and agility to prepare their firms to tackle unforeseen economic challenges, the oft bestowed epithet of the Chief Future Officer rings true. Our cover feature is the much talked of progress of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), which is among the many prongs at which India fights climate change. As amendments to FAME II come into effect, we analyse the issues and challenges that stymie more widespread adoption of electric vehicles (EVs). The monthly adoption of EVs has fallen short of the annual minimum targets established by NITI Aayog and other research organisations. NITI Aayog’s goal for FAME-II (from April 2020 to March 2023) aimed to achieve a total adoption of 1.93 million electric two-wheelers (E2Ws). The actual adoption of E2Ws though, has only been 1.02 million. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles II especially prioritises popularising E2Ws. Suspension of subsidies for non-compliance with the Phased Manufacturing Programme guidelines impacted E2W sales during the 2022-23 financial year. The recent amendments made to the FAME-II scheme, especially the reduction in subsidies, is expected to increase prices of E2Ws from 1 June. Industry experts point out, moreover, that the infrastructure for EV charging has not met targets. As of January 2023, India had 5,254 public EV charging stations for 2.065 million EVs, which works out to an average of 393 EVs per charging station. This ratio highlights the need for more and speedy investment in charging infrastructure. Of course, we also bring to you, all our regular features and columns. Happy reading! ANNURAG BATRA [email protected] THE CATCH IN CLEAN TRANSPORT EDITOR-IN-CHIEF’S NOTE
8 | B W BUSINESSWORLD | 17 June 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]) Rishabh Singh ([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, Special Correspondent: Rajany Pradhan Correspondents: Abhishek Sharma, Arjun Yadav Jr. Correspondent: Nitesh Kumar, Himanshu Kumar Ojha, Shruti Tripathi, Sangeet Kumar Sanu 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 DISRUPT: Resham Suhail BW EDUCATION: Upasana BW HEALTHCARE WORLD: Smridhi Sharma, Shivam Tyagi, Bhupendra Paintola BW HOTELIER: Editor: Saurabh Tankha Editorial Lead: Bulbul Dhawan Operations Controller: Ajith Kumar LR BW MARKETING WORLD: Soumya Sehgal, Reema Bhaduri BW PEOPLE: Sugandh Bahl, Krishnendra Joshi BW LEGAL WORLD: Kaustubh Mehta BW WELLBEING: Kavi Bhandari, Sanjana Deb BW SECURITY WORLD: 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: Kartikay Koomar, Mohd. Salman Ali, Moksha Khimasiya, Shweta Boyal, Alka Rawat, Arti Chhipa, Mradul Dwivedi, Himanshu Khulbe Asst. Manager - Design: Kuldeep Kumar EVENTS TEAM: Tarun Ahuja, Devika Kundu Sengupta, Priyanshi Khandelwal, Preksha Jain, Akash Kumar Pandey, Mohd. Arshad Reza, Sneha Sinha, Ashish Kumar, Atul, Nandni Sharma, Mahek Surti, Reeti Gupta, Atul Joshi, Biren Singho, Neeraj Verma, Anupama Agrawal, Sushmita Kumari, Vaishali Vij, Anmol Kaur, Baani Chauhan, Shivam Popli, Prashant Kumar, Mayank Kumar SALES TEAM NORTH: Ravi Khatri, Anjeet Trivedi, Rajeev Chauhan, Amit Bhasin, Saurabh Jain, Somyajit Sengupta, Sajjad Mohammad, Agrata Nigam, WEST: Kiran Dedhia, Nilesh Argekar SOUTH: C S Rajaraman BW COMMUNITIES BUSINESS LEADS Priya Saraf (BW Education), Gareema Ahuja (BW Legal World), Chetan Mehra (BW Disrupt), Shruti Arora (BW Marketing World) CIRCULATION TEAM General Manager - Circulation, Subscription & Sales: Vinod Kumar ([email protected]) NORTH-EAST: Vijay Kumar Mishra, Mukhtadir Malik, Kamlesh Prasad WEST: Gorakshanath Sanap SOUTH: Sarvothama Nayak K Production Manager: Shiv Singh 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 17 17 JUNE 2023
10 | B W BUSINESSWORLD | 17 June 2023 MAILBOX YOUR COMMENTS TALK BACK www.businessworld.in RNI NO. 39847/81 I 03 JUNE 2023 EXCLUSIVE INTERVIEW : Union Minister For Power and New & Renewable Energy R.K. Singh INDIA’S BEST KEPT FMCG SECRET The Rs 72,000 crore Amul is betting on the non-dairy food segment to shore up its revenue to Rs 1 lakh crore Rs 150 JAYEN MEHTA, MD,Amul EFFECTIVE IMPLEMENTATION This refers to the editorial (“‘Digital Platform’ Will Help Scale MSMEs”, BW, June 3). It is disheartening to know that only a small fraction of MSMEs have the ability to attract talent, adopt technology, access markets, and apply productive processes. This hurts competitiveness. Today, it goes without saying that MSMEs are the backbone of the Indian economy. However, the policies intended for the well-being of the sector often lack effective implementation on the ground. There seems to be a large gap between problem identification and its solution addressing the same; for instance, there is no clear distinction between a company having a headcount of 50,000 and 10, and compliance needs to be more liberalised. NAVDEEP DANG, EMAIL JOURNEY: MICRO TO SMALL This refers to the editorial (“From Start-up India To Scale-up India”, BW, June 3). It is a cause for concern that small businesses often struggle to access capital at the right time during their growth trajectory, leading to their demise. To achieve our development goals, we must address the challenges faced by the entire startup ecosystem, including the availability of capital, resources, and support. While the government has taken steps to improve the ease of doing business, there are still significant obstacles to overcome for India to shine on the global stage. It is important to note that approximately 99 per cent of registered companies in India are micro enterprises. Therefore, the primary roadblock hindering India’s progress lies in the policies and support required to propel micro enterprises on their journey toward becoming small enterprises. ANUPRIYA DAVE, 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
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12 | BW BUSINESSWORLD | 17 June 2023 Cover design by SHIV KUMAR Foot Off The Subsidy Pedal The adoption of EVs in the country has remained short of the mark. Now, subsidy cuts, sluggish growth in EVinfrastructure threaten to further impede the progess 66 14 Jottings Will the fiscal deficit target be met? Two-wheeler sales in high gear; Drugmakers pin hopes on a better year; AI & the trillion -dollar club, and more 16 Columns Vikas Singh (p. 16); Srinath Sridharan (p. 18); Amit Tiwari (p. 22); Minhaz Merchant (p. 26); Kiran Karnik (p. 32);Amit Kapoor & Amitabh Kant (p. 34); Jayesh Shah (p. 36); Krishan Kalra (p. 38) 42 Tax Treatment A look at whether the angel tax exemption granted to foreign investors will promote GIFT City or drive existing investors to foreign climes 46 ReNewed Energy ReNew founder & CEO Sumant Sinha on his company’s expansion plans and why the clean energy sector holds enormous potential for entrepreneurs, and more 50 An HUL Great Outgoing HUL CEO & MD Sanjiv Mehta on the things he did and achieved at the ‘desi’ MNC while taking it to greater heights and how “his best is yet to come” 54 In Conversation Simon George, Managing Director – Cargill Food Ingredients and Bio-Industrials, South Asia and President, Cargill India on the the next big growth phase for India, innovations and more 56 Crowding the Coffee Street A look at how foreign coffee retail chains like Pret A Manger and Tim Hortons are making inroads into the Indian market and what that means for Tata-Starbucks, Cafe Coffee Day and Barista COSTLIER EVs? CONTENTS VOLUME 42, ISSUE 17 17 JUNE 2023
17 June 2023 | B W BUSINESSWORLD | 13 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 118 60 Keen on India Tanvir Khan, CDO, NTT DATA Services on India’s heightened relevance in tough market conditions, quantum computing and artificial intelligence 72 Maruti’s EV Bet Maruti Chairman R.C. Bhargava on India’s largest carmaker’s plans in the immediate future including a resolve to make a big spalsh in the EV category 76 9 Years of Modi A look at the changes India has undergone under the leadership of PM Modi during his nine years in office GUEST COLUMNS 78 Kiran Mazumdar Shaw, Executive Chairman, Biocon & Biocon Biologics 80 Mohandas Pai, Chairman, Aarin Capital & Nisha Holla, Technology Fellow, C-CAMP 84 Chief Future Officers The sixth edition of the BW CFO World’s Best CFO & Finance Strategy Awards fetes CFOs and financial teams of firms who successfully managed to steer their organisations in challenging times CFO AWARDEES 86 Vinod Kumar Mishra, Petronet LNG 88 Sanjay Upadhyay, Deepak Nitrite 89 Kabir Ahmed Shakir, Tata Communications 90 Anurag Mantri, Jindal Stainless 115 LAST WORD Ajay Singh, President, Assocham on how the GST regime has revolutionised tax collection in the country and what needs to be done further 91 Sangramjit Sarangi, SBI Life Insurance Company 92 Poornima Subramanian, Reliance Nippon Life Insurance 93 Nitin Sood, PVR 94 Surajit Chakrabartty, MedGenome Labs 95 Mayank Khandelwal, NEC Corporation India 96 Santanu Acharya, NIXI 97 Pratap Daruka, Tredence Analytics Solutions 98 Rajiv Kumar Goyal, Applied Solar Technologies 99 Ajay Agarwal, Security Printing and Minting Corporation of India 100 Piyush Makharia, StockGrow 101 Abhishek Gupta, OYO 102Keyur Doshi, Fincare Small Finance Bank 103 Prabhat Agarwal, GHV Advanced Care 104 Dinesh Bansal, Motorola Mobility
14 | BW BUSINESSWORLD | 17 June 2023 JOTTINGS THE MARRIAGE season and replacement demand seem to have pushed up two-wheeler sales by 20 per cent in May year-on-year (y-o-y), albeit from the low base of May 2022. Passenger vehicle (PV) sales volumes have grown in double digits too, shooting up by 15 per cent y-o-y, driven by launches of new models and better supplies. The volume of commercial vehicle (CV) sales is a dampener though, having dropped five per cent y-o-y, reflecting the spree of early buying in the last quarter of the last fiscal. Tractor sales fell by four per cent. Automobile industry sources say the total production of passenger vehicles, three-wheelers, two-wheelers and Quadricycles in April 2023 was 19,57,599 units as the industry was transitioning to BS 6 Phase 2 Emission Norms from 1 April 2023. Sales of passenger vehicles was the highest ever in April 2023, up 12.9 per cent over April 2022. — Utkarsh Agarwal Two-wheeler Sales in High Gear Photograph by Imagedb Photograph by Sbhaumik ARE WE ON COURSE TO THE 5.9 % FISCAL DEFICIT TARGET? T HE MORNING, they say, shows the day. As a brand-new fiscal gets under way, one can only hope that the preliminary data for the first month of the 2023-24 financial year will defy weather axioms and prove a false alarm. Data released by the Controller General of Accounts (CGA) on 31 May show the fiscal deficit of the central government at Rs 1.4 trillion in April, or two times that of April 2022 when it was Rs 0.7 trillion. The April figure is 7.5 per cent of government estimates for the entire financial year. This increase was accompanied by a sharp 13.9 per cent contraction in net tax revenues and an 8.2 per cent squeeze in non-tax revenues, along with a 15.2 per cent increase in revenue expenditure and a robust 24.2 per cent expansion in capital expenditure. In simpler terms, India’s real GDP for F Y 2022-23, measured at constant (2011-12) prices, is estimated to reach Rs 160 lakh crore, surpassing the revised estimates of Rs 149 lakh crore for FY 2021-22. The nominal GDP for FY 2022-23, measured at current prices, is projected at Rs 272 lakh crore, compared to Rs 234 lakh crore in FY 2021-22. — Ashish Sinha cent rise in revenue expenditure. So far the Union government has been able to keep the fiscal deficit for FY 2022-23 below revised estimates at Rs 17.3 trillion. This was achieved through higher-than-expected revenue receipts and slightly reduced expenditure, offsetting the disinvestment miss and exceeding capital expenditure expectations. Despite a 17.8 per cent contraction in non-tax revenues, net tax revenues grew by a healthy 15.2 per cent in FY2022-23, accompanied by a 7.8 per
17 June 2023 | B W BUSINESSWORLD | 15 Drug Makers Pin Hopes on Better Fiscal PHARMACEUTICALS EXPORTS from India have catapulted by 12 per cent during the 2022-23 financial year, if from a low base. The 12 per cent increase in export of drugs and formulations over the previous fiscal was partly driven by a soaring demand in the United States and partly by a depreciating rupee, says a report by rating agency CRISIL. Industry pundits are now bullish about exports of formulations in the ongoing financial year (FY 2023-24). Formulation exports are likely to increase with the abating of the price erosion of existing products, more new product launches and a steadily rising demand in export markets. Better price realisations could end the woes of an industry that has witnessed muted growth over the last two financial years (FY 2021 and FY 2022). The highly competitive US market has forced the Indian pharmaceutical industry to reduce prices by seven per cent to 10 per cent, or much lower than previous reductions of five to seven per cent. Pharmaceutical companies are now desperately trying to diversify their product portfolios, moving away from the high competition drugs to more complex and speciality drugs to be able to keep their margins and exports on a higher trajectory. If the predictions hold true, then this could mean a better fiscal ahead for Indian drug- makers. —Shivam Tyagi Photograph by Motorolka 17 June 2023 | B W BUSINESSWORLD | 15 Better Fiscal Ahead for Drug Makers? 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 operationalize 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 kilometers for both priority and non-priority areas, and airlines can propose network and individual routes instead of predetermined ones. According to Jyotirty areas, and airlines can propose network and individual routes instead of predetermined ones. According to Jyotirty 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 operationalized 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 con 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 p opportunity of regional air operators including Staone — Ashish Sinha Photograph by Motorolka Kajaria, India’s leading tile company, has recently launched its new 15000 sq. ft. Kajaria and Kerovit showroom in Mumbai. The showroom, a one-stop destination for all tiling and bathroom solutions, is a testament to the company’s commitment to providing the highest quality products and service to customers. From contemporary to traditional, Kajaria’s products are designed to meet the diverse needs of customers. Featuring an extensive range of Kajaria Eternity Tiles & Kerovit sanitaryKAJARIA: Catering to a diverse range of customer needs ware and faucets, the showroom is beautifully designed to offer you an immersive experience and help you visualise the products in your own space. The entire area is spread across a large well-lit expanse that allows for everyone to have a clear view of the products. Each design and product gets its own space to shine and show you the unmatched class of Kajaria Eternity and Kerovit. The brand’s products are made with the latest technology and are in line with the latest international trends. The showroom also has a team of experts who are available to answer any queries and help customers choose the right product that suits their needs. BW; BUSINESSWORLD Feature Presentation
16 | B W BUSINESSWORLD | 14 June 2023 CAN MONEY buy happiness? It’s not a rhetorical question. Can money buy happiness is debatable, but it certainly does not make one sad. Happiness, & its Measurement The rich are generally happier than the poor. Money can increase happiness by enhancing both the ability and access to meet needs, fulfil desires. It provides the tools to solve problems. Equally true is that higher income fails to increase happiness beyond a certain level. A Crux study covering 18,000 adults across four socio-economic groups provides an insight into a strong correlation between happiness, and several correlates of happiness. It highlights that happiness is complex. The Rich tend to be happier, and yet prioritising money over time has actually the opposite effect; and undermines happiness. A modest form of generosity makes people happier than spending the same amount on themselves. Happiness is unwieldly, difficult to measure, given the multidimensional phenomenon. Several factors affect individual well-being, with income, employment, marriage, education, as important determinants. Equally, ‘good and cordial’ relationships, health, social support, selfBy Vikas Singh The author is an economist and columnist esteem, leisure, opportunities and access to ‘favourite’ activities, social participation is both a source and factor of happiness. The study articulates that money in the bank has a larger bearing on happiness than income. Even a tenth of an annual income in the bank is a bliss. Those in debt expressed a disproportionate level of dissatisfaction, with over 80 per cent of the respondents who had ‘availed’ of personal loans feeling anxious, even unhappy. Similarly, those who ‘experienced’ holidays, trips, reunions, or were ‘gifted’ were happier than those who used an equal amount to buy ‘things’ or gadgets. Over 90 per cent of the respondents in the top income decile (juggling and multi-tasking) expressed that they would ‘trade’ time and leisure for money. Happiness is also dependent on what citizens ‘receive’ for the taxes they pay. Vote is a ‘promissory’ note. They expect payback, feel cheated, and endure alienation. Over half of the respondents, particularly those at the bottom half of the income pyramid blame the government for their misery. They expect the government to own responsibility, provide access to clean water, education, security, health, parks, and livelihood opportunities. The government has not enabled many of the capable, denied most others. Behaviours & Choices Influence Well-being The individual has an equal responsibility. People who pursue important long-term goals lead a meaningful life. Those who exercise, work diligently, follow rules and abide by laws experience well-being. Those fostering a culture of togetherness, fraternity are happier. Happiness is enrapturing. The impact happiness has on society is difficult to capture, but visible. Happy people function more effectively, enjoy more supportive and social relationships. They cheer others, leading towards a cohesive society. They are law abiding, financially responsible, more likely to help, vote HAPPINESS IS THE RESPONSIBILITY OF BOTH SOCIETY & THE CITIZEN COLUMN
14 June 2023 | B W BUSINESSWORLD | 17 that focuses on social welfare, emotional and mental well-being, inclusion, and sustainable development. For the rest, the solution lies in a broader idea of happiness. Countries with higher per capita incomes tend to have higher average life satisfaction scores; and the better off within a system tend to be happier. Shrill voices across a section of the thinkers to replace GDP with a Happiness Index are misguided, doomed to fail – and must. While the GDP may have a fair share of problems, it’s a robust measure, a common metric of value and a fair indicator of many intangibles. The Well-Being of Citizens This should not mean we give up; instead we should intensify our search for those determining factors, identify tools that can holistically measure satisfaction, meaning and purpose of life. And address them holistically. While societal indicators such as unemployment, education, income, and health are measured and monitored, indicators of psychosocial well-being are equally important. Our policymakers must create policy frameworks, and enablers that stimulate high, equally equitable growth. Growth triggers prosperity, enhances and sustains living standards. Eventually we will need to move to ‘well-being’ as the overall measure of prosperity. and volunteer. They make a positive contribution. Are good citizens. At the individual level happiness enhances health and longevity. Happiness doesn’t just feel good, it benefits. The study highlights that those primed to feel happy were 40 per cent more productive and go on to earn more than their peers over a lifetime. They enjoy better health, live longer than the ‘less’ happy. Their behaviour and demeanour reflect on people around them. Happy people do not just feel and function better, they excel and achieve what they value. They lead a more fulfilling life. Happiness proliferates into substantial benefits for society. The study demonstrates that intuitions about how to ‘convert’ money into happiness is misguided. Often dead-wrong. Mobile phones, TVs, sports cars, and houses have only a limited impact on happiness. India ranks at the bottom decile of the World Happiness Report. A key metrics of happiness and well-being is whether people have access to the basic necessities of life at an affordable cost, coupled with freedom for citizens to perform basic activities without any hindrance. Correlation Stronger in Poor Economy India has the dubious distinction of 70 per cent of its employed earning lower than the per capita income. Over 80 per cent of the poor lack social support, are deprived and denied, are insecure and out of the inclusive net. They are exploited, suffer acute discrimination. The poor lack the resources to deal with setbacks. Over 400 ‘kill’ themselves every year. They often make wrong choices, vote badly. There is also a need for policymakers to understand happiness holistically, and move away from the notion that happiness is ‘fluffy’, its pursuit utopian. Happiness is inextricably linked to money and material well-being, and increases with income although there is an upper bound, beyond which the income effect dissipates. We must reach that upper band. Our focus must not be the cause of unhappiness, but be the focus on how we can provide everyone a dignified living. It’s an economic solution for over 80 per cent of deprived Indians. We need to weave a new narrative We need to weave a new narrative that focuses on social welfare, emotional and mental well-being, inclusion, and sustainable development. For the rest, the solution lies in a broader idea of happiness Photograph by Stock Image Factory
18 | B W BUSINESSWORLD | 17 June 2023 N THE LAST DECADE, the landscape of modern media in India has undergone a transformative shift. The rise of short-form video content, the dominance of social networking platforms, the advent of digital streaming services, and the democratisation of media production have reshaped the way we consume and engage with content. The rise of reels, social networks, and digital streaming platforms has significantly influenced the way we consume and interact with content. India, with its vast population of over 1.4 billion people, presents a unique set of demographics that influence media consumption patterns, and probably even vice-versa in media influencing social behaviour. The market has a predominantly young population, with a significant percentage falling within the millennial and Gen Z cohorts. These digitally savvy generations are not only shaping consumption trends but also redefining how media is produced, distributed, and consumed. With increasing internet penetration and smartphone adoption, more Indians now have access to a wide array of content across various digital platforms. The Indian media sector has been quick to recognise the changing landscape and adapt to the evolving needs of its audience. Traditional media outlets, such as print and television, have been expanding their digital presence to reach wider audiences. At the same time, digital-native platforms are gaining prominence, offering on-demand content, personalised experiences, and interactive engagement. Streaming services, social media platforms, and digital news aggregators are witnessing significant growth, attracting both domestic and international players to invest in the Indian market. Can they exist as standalone, or will there be a melting confluence of media mediums? One of the most notable developments in modern media is the emergence of short-form video content, popularised by platforms such as TikTok, Instagram Reels, and YouTube Shorts. While some of the ideas will not meet regulatory nod from consumer safety perspective, we should anticipate newer products to come to the market. Reels have revolutionised content creation, allowing users to produce engaging videos that captivate audiences in just a matter of seconds. This format’s success can be attributed to its ability to convey information, entertainment, and creativity in a concise and visually appealing manner. The User generated content is catching up in popularity and ease. What will this do to the traditional mode of content creation? Social Networks as Media Hubs Social networking platforms have evolved beyond their initial purpose of connecting individuals. They have become virtual media hubs, hosting a wide array of content from news articles to user-generated videos. Platforms like Facebook, Twitter, and LinkedIn have become essential tools for informaI The Changing Dynamics of Modern Media in India (A)muse & Musings By Srinath Sridharan
sitates the need for careful discernment of reliable sources amidst the vast sea of user-generated content. With Web3 development, this could further increase with the power of content control that would vest with the creators. Media outlets must embrace innovative storytelling formats, leverage user-generated content, and foster a two-way dialogue with their audience through social media and other digital platforms. This approach not only strengthens brand loyalty but also allows for real-time feedback and insights into audience preferences. The Impact on Advertising and Monetisation The changing dynamics of modern media have also had and will continue to impact advertising and monetisation strategies. Traditional ad formats, such as television commercials and print advertisements, are increasingly being supplemented by influencer marketing, branded content, and targeted ads on social networks and streaming platforms. This shift reflects changing consumer behaviour and the need for brands to engage with audiences in newer and personalised ways. While the changing dynamics of modern media have brought about numerous advancements and opportunities, there are also several critical issues that deserve attention and consideration. Misinformation and Disinformation: Proliferation of social networks and non-regulated sources of content has exacerbated the spread of misinformation and disinformation. The rapid and viral nature of content dissemination on these platforms can lead to amplification of false or misleading information, impacting public opinion, and social cohesion. Addressing this issue requires a collaborative effort from platforms, users, and society at large to promote media literacy, fact-checking, and responsible sharing. tion dissemination, influencing public opinion, and fostering online communities. However, this proliferation of content also poses challenges such as misinformation, echo chambers, and privacy concerns, necessitating critical media literacy skills. Digital streaming platforms like Netflix, Amazon Prime Video, and Disney+ have disrupted traditional television and cinema models. The convenience of on-demand streaming has revolutionised how we consume entertainment, providing a vast library of content accessible anytime, anywhere. This shift has also led to an increased emphasis on original programming and content personalisation, as streaming platforms vie for subscribers’ attention in a highly competitive market. The rise of modern media dynamics has democratised the production and distribution of content. This demographic’s propensity for social media, online video platforms, and mobile apps has fueled the rise of independent content creators and alternative media channels, challenging traditional media outlets. With easily accessible tools and platforms, individuals and small creators can now compete with established media giants. This democratisation has led to a diverse range of voices and perspectives being amplified, challenging traditional gatekeeping in the media industry. However, it also necesPhotograph by Worawut Prasuwan / Canva Photograph by Atlas 17 June 2023 | B W BUSINESSWORLD | 19 Streaming services, social media platforms, and digital news aggregators are witnessing significant growth, attracting both domestic and international players to invest in the Indian market
20 | B W BUSINESSWORLD | 17 June 2023 Privacy and Data Security: Social networks and digital streaming platforms collect vast amounts of user data, raising concerns about privacy and data security. The widespread sharing of personal information and the monetisation of user data by these platforms has sparked debates around consent, transparency, and the potential for data breaches. Striking a balance between personalised experiences and protecting user privacy is crucial in the digital media landscape. Filter Bubbles and Echo Chambers: Social networks and algorithm-driven content recommendations have also created filter bubbles and echo chambers. These phenomena occur when users are exposed only to information and opinions that align with their existing beliefs, limiting exposure to diverse perspectives. This can reinforce biases, hinder critical thinking, and contribute to societal polarisation. Encouraging platforms to promote content diversity, offer alternative viewpoints, and provide users with tools to explore different perspectives can help address this issue. Content Moderation and Online Harassment: The open nature of social networks and digital content also gives rise to concerns regarding content moderation and online harassment. The sheer volume of user-generated content makes it challenging for platforms to effectively moderate and remove harmful or inappropriate content. Additionally, the anonymity provided by online platforms can embolden individuals to engage in cyberbullying, hate speech, or harassment. Stricter guidelines, improved reporting mechanisms, and proactive moderation measures are necessary to create safer and more inclusive online spaces. Economic Sustainability: for Creators: While the democratisation of media production has allowed individuals and small creators to showcase their talent and reach global audiences, the issue of economic sustainability remains a challenge. As the digital landscape becomes increasingly saturated, it becomes harder for creators to monetise their content and make a sustainable living. Platforms need to explore fair revenue-sharing models, transparent algorithms, and supportive systems that enable creators to thrive and continue producing highquality content. Impact on Traditional Media The disruptive nature of modern media dynamics has had a significant impact on traditional media and journalism. Many traditional media outlets have faced declining revenues, reduced audiences, and increased competition from digital platforms. This has implications for the sustainability of quality journalism and the ability to support investigative reporting, which plays a vital role in holding power to account and informing the public. Furthermore, the monetisation of digital media remains an ongoing challenge. While advertising revenue forms a significant portion of the revenue stream for many media platforms, finding sustainable models for monetisation in the digital era is critical. Subscription-based services, brand partnerships, and innovative ad formats are emerging as potential avenues for revenue generation. Balancing the need for financial viability with providing quality content free of charge is a delicate task that media entities must navigate. Finding sustainable revenue models, encouraging collaborations between traditional and digital media, and embracing innovative approaches can help ensure the continuity of reliable and independent journalism. It is imperative for platforms, users, regulatory bodies, and society at large to collaborate in nurturing a media landscape that empowers individuals, fosters informed public discourse, and promotes the values of transparency, accuracy, and diversity. The writer is the author of Time for Bharat, a policy researcher & a corporate advisor Photograph by Metamorworks / Canva (A)muse & Musings By Srinath Sridharan
17 June 2023 | B W BUSINESSWORLD | 21 F INANCIAL freedom is the ability to live the life you want without being burdened by financial constraints. It is a state of being where you have enough money to cover your expenses and pursue your dreams without worrying about your financial situation. Achieving financial freedom requires discipline, hard work, and a long-term perspective. Even though most of this journey is a well thought one, there will be surprises along the way. How one plans to address such surprises is also an important aspect of achieving and staying financially free. In this article, we will discuss some strategies to help you achieve and maintain your financial freedom. 1. Create a budget The first step towards financial freedom is to create a budget. A budget is a plan for how you will spend your money each month. It helps you to track your expenses and identify areas where you can cut back (in terms of expenses). To create a budget, start by listing all of your income and expenses. Then, divide your expenses into categories such as housing, food, transportation, and entertainment. Finally, allocate a certain amount of money to each category and ensure that you stick to your budget. 2. Pay off debt Debt is one of the biggest obstacles to financial freedom. High-interest debt such as credit card debt can quickly spiral out of control and make it difficult to achieve your financial goals. To pay off Achieving financial freedom requires discipline, hard work, and a long-term perspective. Financial freedom is not a destination, it is a journey. It takes time and effort; hence patience is of utmost importance but the rewards are well worth it. By Vikas Agarwal Vikas Agarwal (CFPcm), Director, Cointree india finman Pvt. Ltd. FIVE STEPS TO ACHIEVE FINANCIAL FREEDOM this account to fund any unnecessary or avoidable expenses. 4. Invest for the future Investing is a powerful tool for building wealth and achieving financial freedom. By investing in equity, debt, commodities and real estate, you can earn a return on your money that can help you achieve your financial goals. However, one must be aware that investing comes with risk, so it is important to do your research and seek professional advice before investing. The advisor here will be able to access your financial aspirations/ goals, the present situation, risk appetite and several other factors before building a holistic plan to achieve each of those goals. Another important aspect of investing is being disciplined. If the investments are done with a longterm horizon, do not let short or medium term developments affect the investments for that aim. For example, if a SIP has been initiated for building a corpus for retirement, in the interim there will be phases when the market is very volatile or there is a sharp correction, do not stop the SIP. 5. Live below your means Living below your means is a key principle of financial freedom. Instead of trying to keep up with the Joneses, focus on maintaining a modest lifestyle and saving as much money as possible. This means cutting back on unnecessary expenses such as eating out, buying expensive clothes, or taking expensive vacations. In conclusion, achieving financial freedom requires discipline, hard work, and a long-term perspective. By creating a budget, paying off debt, saving for emergencies, investing for the future, and living below your means, you can build a solid financial foundation that will allow you to live the life you want without being burdened by financial constraints. Remember, financial freedom is not a destination, it is a journey. It takes time and effort; hence patience is of utmost importance but the rewards are well worth it. debt, start by making a list of all of your debts and their interest rates. Then, focus on paying off the debt with the highest interest rate first while making minimum payments on the rest. Once you have paid off the highest interest bearing debt, move on to the next debt until you are debt-free. In this manner, debt can be addressed in a systematic manner without spiraling out of control. 3. Save for emergencies Emergencies happen, and they can derail your financial plans if you are not prepared. To avoid this, it is important to have an emergency fund. An emergency fund is a savings account that you can use to cover unexpected expenses such as car repairs or medical bills. Aim to save at least three to six months’ worth of living expenses in your emergency fund. At the same time, ensure that you do not dip into mall opportunities are often the Sbeginning of great enterprises.� Every single drop in the ocean counts. When talking about a progress of a developed or developing countries worldwide, we can't undermine the signi�cant role of SMEs. Undoubtedly, small and medium sized enterprises have made an indelible landmark on the economic landscape due to their premeditated importance in reengineering the industrial sector. Owing to their signi�cant inputs and involvement, SMEs assumes a pivotal responsibility in socio-economic development of India. These industries account for 95 per cent industrial units, contributing up to 40 per cent of GDP and 45 per cent of total exports. They are the second largest employers of human resources after agriculture. The scope of this sector is vast as individuals with entrepreneurial spirit but limited resources always have before them the option of initiating a business plan at the grass root level. Small �rms are reactive comfortably and more quickly to the changes in the environment. They enthuse innovation and bring into lime light new products, new methods and new ideas. S m a l l B u si n e ss is t h e s e e d b e d o f entrepreneurship. It provides an easy path for the novel entrepreneurs who wish to try their skills and wisdom to start a new venture. They have their own advantages over larger businesses. They are substantial generators of employment, and can act as shock absorbers during a catastrophic situation, responding veritably to topsy-turvy in the market. With not a complicated hierarchy, decision making is ea s y and simpler and so the ma r ket expectations can be ful�lled. They cater to provide services and a wide range of products at a�ordable prices to the consumers. This contribution is despite the sector being exposed to intensi�ed competition since liberalization of Indian economy in 1991. Small industry in India has been confronted with an increasingly competitive environment due to: (1) liberalization of the investment regime in the 1990s, favoring foreign direct investment (FDI). (2) the formation of the World Trade Organization (WTO) in 1995, forcing its member-countries (including India) to drastically scale down quantitative and nonquantitative restrictions on imports. (3) domestic economic reforms. The cumulative impact of all these developments is a remarkable transformation of the economic environment in which small industry operates, implying that the sector has no option but to 'compete or perish'. With the advent of planned economy from 1951 and the subs equent pol i c i e s by the Government of India, both planners and the law makers earmarked a special role for SMEs in the Indian economy. Due protection was accorded to both sectors, and particularly for small-scale industries from 1951 to 1991, till the nation adopted a policy of liberalization and globalization. The development of small industries is instrumental in veering the direction of industrialization to rural areas. The fact that these industries are labour-intensive and utilize less capital triggers the countries employment and supply of manpower in the rural areas. They contribute towards a better utilization of local resources and skills which may otherwise remain unde�led and might have tarnished eventually because of lack of exposure. It is a means of preserving our culture by means of encouraging people engaged in the handicrafts and �ne arts. Apart from improving standards of living by increasing the per capita income, these units hereby, assist in equitable distribution of income among the people. The sector helps the country to alleviate the generic living conditions of the people by overcoming the stigma of poverty and SME Carving Out a New Economy unemployment. One of the chief thrusts of SMEs is to regulate and provide a platform to the vulnerable groups of the society as the main drivers and empower the women and the youth to start their enterprises. Small enterprise promotion has continued to remain an important and integral part of Indian development strategy well before the First FiveYear Plan. However, the sec tors faces unforeseen challenges. Some of the most persisting constraints facing the sector, dominated by smaller units in the informal sector, include poor or non-availability of loan �nance, low levels of technology, inadequate physical and economic infrastructure and resources to invest in quality search and adopt new technology, and a policy of product reservation for small scale industries. Poor monitoring of implementation and e�ect of various small �rm policies has been an issue of concern. The larger enterprises o�er a sti� competition to the small scale units in the sale o f o u t p u t. Ap a r t fr o m t h e s e m a j o r impediments, the sector faces a number of other problems like ine�cient management, non-availability of cheap power, burden of local taxes, shortage of working capital and lack of demand for the products. The list is endless. SMEs have emerged as a vibrant tier of the economy as they have already taken over as key contributors to country's GDP. The new shout out is the Make in India Campaign. Owing to the launch of �agship Make In India Campaign, Prime Minister Narender Modi has given way to a new national program designed to facilitate investment, cultivate innovation , augment pro�ciency in skill development, protect intellectual property and build Best-in-Class manufacturing infrastructure, there has never been a better time to make in India. India's small and medium-sized industries can play a big role in making the country take the next big leap in manufacturing. India should be more focused towards novelty and innovation for these sectors. The government has to chart out plans to give special sops and privileges to these sectors. As clearly seen, the hindsight and the future vision of SME's cannot be simply considered a smaller version of their larger counterparts as they have di�erent managerial styles, scale of operations, levels of independence and decision making characteristics. However these di�erences do not eliminate the opportunities of SME's to internationalize and gain �ight in the global market. SME sector development will continue to spread its wings and be an integral part of the development thrust and promote the entrepreneurial culture. “
22 | B W BUSINESSWORLD | 17 June 2023 MARKETING AND AI Driven Marketing or Marketing through AI! ARKETERS ARE ALREADY observing the potential effects of AI on their marketing initiatives, illustrating the marketing implications of these potent new technologies. Because of its effectiveness and accuracy in data analysis, as well as its ability to support a wide range of smart device features, AI technology is gaining popularity. A wide range of commercial enterprises and industries are beginning to rely on this sophisticated technology to provide the highest level of customer service and satisfaction rates. Thanks to AI, digital marketers now have access to the insights they need to create and manage successful marketing initiatives. THE MANY WAYS AI IS BENEFITTING MARKETING When marketers have a deeper understanding of their target market, they can use this information to create customised marketing strategies that will communicate with their customers on a psychographic level and reach them at the correct time and place. Some of the ways AI makes this possible are: u Trend forecasting and real-time predictive modelling For the majority of businesses, understanding trends is a tremendous challenge. Marketers can more accurately predict future events by employing real-time models built with AI and machine learning. Under Armour, a sports apparel company combines user data from its Record app. Through this data, the brand has the ability to offer relevant training advice and lifestyle changes based on the gathered data. v Bespoke customer experience Brands must quickly evolve to capture the emerging digital consumer, moving from a traditional customer model to one focused on the online experience. To reach this next generation of customers with personalised experiences, brands can tap into the power of automation, machine learning, AI, and segmentation to increase brand awareness, change perception, improve web traffic, and grow sales. Personalisation has always been a key part of the customer experience at Starbucks, with the ability to customise drinks for your individual taste. The company now processes this data using predictive analytics to send clients personalised marketing communications, such as recommendations when they approach their local retailers and discounts meant to raise their average spending. Customers may also place orders directly from their phones using voice commands thanks to an AI-powered virtual barista service available on the app. M AmitScope
17 June 2023 | B W BUSINESSWORLD | 23 ADVERTISING wFuturistic audience analytics Large amounts of data may be analysed using AI and ML to find patterns, which can help marketers understand the data and their potential clients. It offers a perception of the intent, interest, and behaviour of actual consumers. Artificial Intelligence can handle immense scale and function with low latency, or less delay, because it uses real-time data. This is what contributes to realising AI’s full potential. Nike recently introduced a new platform that lets users create bespoke trainers. This is a fantastic sales tactic that also gathers a tonne of valuable information that machine learning algorithms may use to build new products and send tailored recommendations and advertising messages to customers. x Increased capacity to detect preferences and patterns Machine learning techniques are accustomed to huge data sets that can identify preferences as well as patterns in the data. Connecting your marketing to the consumer and individual is a crucial step, and consent is the key here. Most customers, when surveyed, genuinely favour more customised experiences. Customers must participate in the discussion and give marketers permission to use their data for the reasons indicated in order to present them with more relevant items that match their interests. For example, global retailer Amazon now uses artificial intelligence to drive dynamic pricing – reducing prices to elicit more sales when needed, and increasing prices when demand is high. The algorithm enables optimal sales and revenue automatically. WHAT MARKETERS NEED TO DO TO HARNESS THE BENEFITS OF AI Artificial Intelligence technology, combined with marketing tactics, will assist marketers in developing new levels of consumer engagement that are easier to carry out and more immediate. The increased expectations of consumers will present brands with new difficulties as well as possibilities. Marketers can now fully appreciate the opportunities presented by personalisation and relevance. They may optimise them while they are in motion, in real time, taking into consideration all the data they have at their disposal, including their purchase history and contextual relevance. However, this implies that they will have to collaborate with thousands of planners at once. For many, this might be a very difficult task. It’s crucial to pay attention to data quality. A large amount of data is required by sophisticated AI systems built on neural networks and deep learning. As a result, gathering a lot of data is crucial. However, marketers cannot sacrifice data quality for the sake of gathering a lot of data. Artificial Intelligence systems have a hard time finding significant patterns in noisy or inaccurately measured data. As a result, it will be nearly hard to establish accurate AI today is enabling businesses to build and execute more human-like, innovative marketing tactics that may delight customers and win them over as staunch brand champions. This raises the question of whether marketers are prepared to modify their marketing strategies to keep up with AI technology as it develops and advances Amit Tiwari , Global Head Marketing Demand Center, TCS Photograph by Phonlamai
24 | B W BUSINESSWORLD | 17 June 2023 projections on which to build marketing plans. Data quality is so crucial. Therefore, before using any data in business choices, marketers need to ensure that it has been accurately measured and fully recorded in addition to gathering as many data points as is practical. The only way to maximise the potential of AI analytical tools is to do this. The introduction of AI is also bringing automation to new heights, which is excellent news for executives who need to make decisions because it will free up their time. Marketers may now intelligently automate routine, easy processes to free up more time for activities that require human concentration and involvement. Additionally, as consumers become increasingly digital, marketers and sales teams may spend more time on face-to-face contacts with clients, which is actually becoming of the biggest significance. Customers’ own smart AI-powered products and devices are helping them become more accustomed to automation. Therefore, the human component of a business’ relationship with a consumer is taking on more significance. With their time “freed up,” marketers may concentrate on engaging in human connections with their target audiences and clients. They may also identify new methods to tell brand stories, develop new media channels, and more by using AI and machine intelligence. This may ultimately have the ability to raise the standard of advertising’s creative work as a whole, which is once again an intriguing possibility. Here, marketers will need to be more digitally literate and have a better understanding of AI and machine learning than they do now. Additionally, marketers must place more focus on choices that demand original thought and human interaction to create a deeper and more meaningful customer relationship. With regard to technologies like AI and machine learning, there is a lot going on in the marketing industry. Marketers must look at this technology in a wider context than just data analytics. It’s time to stop just giving in to the constant flow of technological innovation and start thinking about this technology in terms of what consumers actually need. It is a good idea to invest in AI, but make sure the innovation is customer-driven, value-driven, and purpose-based. When making an investment in AI, marketers must first recognise the immense potential of the technology. Only then will they be able to shape marketing and gain consumer trust in this technology. With regard to technologies like AI and machine learning, there is a lot going on in the marketing industry. Marketers must look at this technology in a wider context than just data analytics. It’s time to stop just giving in to the constant flow of technological innovation and start thinking about this technology in terms of what consumers actually need MARKETING AND ADVERTISING AmitScope Photograph by Bianco Blue
SELECTION BOARD For Partnerships & Speaker Opportunities: Gareema Ahuja: +91 7827590848, [email protected] For Nomination Inquiries: Gareema Ahuja: +91 7827590848, [email protected] LAW SCHOOL RANKING in association with JUNE 25, 2023 NOMINATE NOW LAST DATE TO NOMINATE: JUNE 10, 2023 PINKY ANAND Senior Advocate , Former ASG, Supreme Court of India PAYAL KHANNA Director, Risk Management & Compliance Cluster India, DB Schenker DR. ANNURAG BATRA Chairman & Editor-in-Chief BW Businessworld and Founder, exchange4media PRANAV MEHRA Director - Legal , Freshwork PRIYANKA WALESHA Head Legal, Yum Digital and Technology SAMEET GAMBHIR Vice President (Corp. Law) & Company Secretary, DCM Shriram SIDDHARTH BATRA AOR, Supreme Court of India DIVYAM AGARWAL Partner, JSA VAIBHAV KAKKAR Senior Partner, Saraf & Partners GAREEMA AHUJA Business Head, BW Legal World
26 | B W BUSINESSWORLD | 17 June 2023 OW BIG, REALLY, is India’s middle-class? It depends on how you define middle-class: by income or by consumption. Foreign companies look at both parameters. They know that by income in purchasing power parity (PPP), the Indian middleclass has an urban bias though rural India is fast catching up. But when measured by consumption across a range of goods and services, India’s middle-class is large and growing. Let’s look at the data. According to the 2011 Census, 63.2 per cent of Indian households owned a mobile phone, 47.2 per cent owned a television set, 21 per cent owned a two-wheeler, and 4.7 per cent owned a four-wheeler. Since the 2011 Census is outdated, it reflects Indian ownership – and consumption – more than a decade ago. So turn to the more recent 2019-20 NFHS (National Family Health Survey). According to the omnibus NFHS, 93.3 per cent of Indian households own mobile phones, 67.8 per cent own television sets, 49.7 per cent own two-wheelers, and 7.5 per cent own four-wheelers. Even this data is nearly four years old so ownership numbers in these key categories would have risen, especially in two-wheelers, cars and SUVs. Clearly the optimism of foreign companies – in domains ranging from automotive and electronics to FMCG and white goods – appears justified. In an interview with Britain’s Financial Times (owned by Japan’s Nikkei group), Masanon Togawa, CEO of the leading white goods company Daikin, said: “India would turn into a market as giant as China in the future, as the middle-class and the wealthy are growing tremendously.” The Caveat Not everyone agrees. The public data search engine howindialives.com, in an article in Mint, begins cautiously before displaying its cynical spurs: “In comparing the potential of the Indian market to that of China, due to the potential inherent in the spending power of the middle-class, Togawa was echoing what many, equally optimistic chief executives have said before. There is certainly potential in the Indian market to grow, with Indian AC ownership in the mid-single digits and with average summer temperatures set to rise in the long term due to climate change.” The caveat comes quickly and unsurprisingly: “But it has been apparent for some time that a bet on the rising size and spending potential of the Indian middleclass is a risky bet, not just for white goods manufacturers like Daikin, but for a range of other companies, such as those in e-commerce, or more recently, online food or grocery delivery. While there has been skepticism for some time on the spending potential of the middle-class, it is the next couple of years or so that will prove to be decisive in the fortunes of many such companies.” Middle Class Moment H Minhaz Merchant COLUMN MINHAZ MERCHANT The writer 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 Pvt Ltd., which was acquired by the Indian Express Group
17 June 2023 | B W BUSINESSWORLD | 27 ric is what foreign companies see but Indian data analysts often overlook. The NFHS data shows that in 2019-20, 7.5 per cent of Indian households owned cars and SUVs. There are roughly 300 million Indian households. This means in 2019-20, when the NFHS data was compiled, 22.5 million Indian households could afford a car or SUV. That figure, given the annual growth in four-wheeler sales since 2019-20, has probably risen today to 30 million households with cars and SUVs costing an average of Rs 10 lakh. World’s Third Largest Auto Market India is now the world’s third largest auto market after China and the US with sales of cars and SUVs in calendar 2022 rising to 4.3 million units. In scooters and motorbikes, India and China were neck and neck in calendar 2022 with sales of 20 million units each. Since around 50 per cent of India’s households now own twowheelers, this means that 150 million of India’s 300 million households possess scooters or motorbikes which cost an average of up to Rs. 1.50 lakh. Two conclusions follow. One, India’s consumption pattern is rising rapidly. Two, the size of India’s middle-class that can afford cars, SUVs, scooters, air-conditioners and television sets is also growing at a fast clip as lower middle-income earners join the consuming middle-class. But howindialives.com remains steadfastly glum. It says: “A middle-class person in India is pretty much in the top 10%, if not 5% of the Indian wealth distribution. And this is really the problem. Even today, 30 years after economic reforms, the slice of the population that forms a viable market for most companies, is really within the top 10% of the population – in fact, far less than that.” Even if this determinedly pessimistic estimate of India’s middleclass population is taken at face value, these 150 million Indians still comprise one of the biggest consumer middle-class markets in the world. The Narendra Modi government tends to take this demographic slice for granted. Corporate taxes have been cut to 22 per cent and in some cases 17 per cent while personal taxes remain at over 30 per cent. An honest middle-class citizen pays a higher percentage of tax on her income then a corporation. As its numbers grow, India’s middle-class is becoming politically more assertive. It makes both economic and electoral sense for the Modi government to pay it the importance it deserves. To examine both the size and spending power of India’s middle-class turn to average wealth per adult gleaned from various databases (including the 2011 Census, the 2019-20 NFHS and Credit Suisse’s Global Wealth Databook, 2022). India’s average wealth per adult works out to $14,804 (around Rs 12 lakh). China’s wealth per adult is $72,553. The global average is $86,823.This comparision doesn’t factor the differences in per capita income by purchasing power parity (PPP). At current exchange rates, China’s per capita income of $10,500 is five times India’s $2,500. By PPP, however, the per capita income gap between China ($20,000) and India ($7,500) narrows from 5x to below 2.5x. That metAccording to the omnibus NFHS, 93.3 per cent of Indian households own mobile phones, 67.8 per cent own television sets, 49.7 per cent own two-wheelers, and 7.5 per cent own four-wheelers. Even this data is nearly four years old so ownership numbers in these key categories would have risen, especially in two-wheelers, cars and SUVs. Clearly the optimism of foreign companies – in domains ranging from automotive and electronics to FMCG and white goods – appears justified Photograph by Indiapicturebudget
The Tribal-dominated state of Chhattisgarh is all set to bring the Treta Yug in the modern era into Chhattisgarh. The state government, led by Chief Minister Bhupesh Baghel, is organising the Grand National Ramayana Festival in the state in June this year and the government is leaving no stones unturned to make this festival not just of the grandest ones in India, but also the most talked about globally. This is the first time that the state of Chhattisgarh is organizing such a festival, and through this festival, the CM aspires not only to showcase the rich culture and heritage of the state but also its connection with the mythological epic saga. Additionally, the festival aims to provide employment opportunities to individuals involved in the performing arts related to the Ramayana. The Chief Minister Bhupesh Baghel has asked for the participation of Ramayana "tableau performance groups" in the Chhattisgarh National Ramayana Festival 2023, which is scheduled to run from 1 June to 3 June. The National Ramayana Festival is being held in Chhattisgarh for the first time, and the Chhattisgarh government has invited tableaux performance groups from all states and union territories to take part. The Chief Minister Bhupesh Baghel has asked for the participation of Ramayana "tableau performance groups" in the Chhattisgarh National Ramayana Festival 2023, which is scheduled to run from 1 June to 3 June, in a letter addressed to the Chief Ministers of all the states and the administrative heads of the CHHATTISGARH: All Set To Bring The Treta Yug With National Ramayana Festival
30 | B W BUSINESSWORLD | 17 June 2023 Through Ram Van Gaman tourism circuit, devotees would be able to experience the spiritual mementos related to Lord Ram from Koriya district to Sukma. Sitamarhi Harchauka (Koriya), Ramgarh (Surguja), Shivrinarayan (JanjgirChampa), Turturiya (Balodabazar), Chandkhuri (Raipur), Rajim (Gariyaband), Sihawa Saptarishi Ashram (Dhamtari), Jagdalpur (Bastar), and Ramaram (Sukma) are being developed at a cost of `133.55 crore under the Ram Van Gaman Tourism Circuit project. This will not only boost rural tourism in the state but also unleash the path to new global tourism opportunities. Union Territories. According to the Chief Minister's letter, the States and Union Territories' joint involvement will enhance the National Ramayana Festival's grandeur and dignity. Mr. Baghel added that the National Ramayana Festival will also include captivating dance-drama competitions with the Aranya-kand from the Ramayan as their theme. Notably, Raigarh, known as Chhattisgarh's cultural capital, is hosting the National Ramayana Festival at the storied Ramlila Maidan. Baghel also discussed Chhattisgarh's historical, religious, and cultural ties to Shree Ram, Mata Kaushalya, and the Ramayana epic in the letter. He continued by stating that Mata Kaushalya, the mother of Shri Ram, was born in Chhattisgarh, which gives it a unique status. Our State is blessed to be the birthplace of Lord Rama’s Mother Mata Kaushalya. Mata Kaushalya was born in the Dakshina Kosala which infers to the presentday Chhattisgarh, and was known for her kindness, wisdom, and devotion to Lord Rama. She is often revered as a symbol of motherhood and is worshipped by many. The state government has revamped the Mata Kaushalya temple in Chandkhuri, Raipur district, to pay homage to Shree Ram and his mother. It's interesting to note that Chhattisgarh is the only state with a Mata Kaushalya shrine. According to the Chief Minister, Shree Ram, the most adored deity in our nation, is a representation of religion and the height of morality. The persona of Shree Ram has always been portrayed as Sitamarhi Harchauka (Koriya) Ramgarh Shivirnarayan Turturiya Chandkhuri Rajim Sihawa Jagdalpur Ramaram CHHATTISGARH IMPACT RAMAYANA
17 June 2023 | B W BUSINESSWORLD | 31 an ideal son, brother, king, and husband. Since the beginning of time, Shri Ram's deeds and the philosophy he represents in the Ramayana have motivated countless generations to walk the moral high road. Shree Ram spent approximately ten of his 14 years in exile in Dandakaranya, primarily in modern-day Chhattisgarh, Odisha, Telangana, and Andhra Pradesh, where a number of Shree Ram-related tales still echo. Chief Minister Baghel further emphasised this fact. In Chhattisgarh’s forest areas, there are various sacred locations where the presence of Shri Ram has been felt deeply. Even today, these places are considered pious and are pilgrimage destinations. Many indigenous communities who have meticulously preserved their customs and culture for generations also have their ancestral homes in these regions. Shivnath and Mahanadi, Chhattisgarh's two major rivers, are where Shree Ram spent much of his exile. The Chhattisgarh government is committed to safeguarding and promoting the state's rich cultural and religious history, according to the letter's of Chief Minister Baghel. Ramayana and Shree Ram are essential components of our culture. The Chhattisgarh government has rebuilt the Mata Kaushalya temple as part of its ongoing efforts to maintain the legacy of Shree Ram, and the annual Kaushalya Mahotsav is also commemorated with great fervour. Along with this, the state government is also doing extensive development work of tracking and arranging the places related to Shree Ram's exile journey and recognizing these milestone places as 'Ram Van Gaman Path'. In the same spirit, the state government organised the first state-level Ramayana Manas Mandali competition from 8 to 10 April, 2022, in Shivrinarayan, district Janjgir–Champa, and the second state-level Ramayana Manas Mandali competition from 16 to 18 February, 2023, in Rajim, district Gariaband, which also included foreign cultural performing troupes from Vietnam and Sri Lanka. The Chief Minister Bhupesh Baghel, concluding the letter, has emphasised that the National Ramayana Festival aims to preserve India's unique religious and cultural identity, which has united generations. The participation of troupes from all states and union territories will enhance the collective spirit and magnificence of the festival, celebrating the richness of India’s cultural heritage. It can be recalled that the Chief Minister Bhupesh Baghel had announced this Ramayana Festival in the state’s annual budget in March. He had announced in his budget speech that by organising the Ramayana Festival, the citizens of Chhattisgarh will get a chance to watch and understand the various cultures of Ramayana and the different forms connected to it from across the world. The state government had proposed to allocate Rs 12 crore for the International Ramayana Festival in the budget itself, which clearly showed the intent of the government. But this was not the only festival which the government had announced in the budget. The Chief Minister Bhupesh Baghel had also announced the Kaushalya Mahotsav in Chandkhuri in district Raipur for the promotion and encouragement of the Ramayana performing troupes. The state government had further kept aside a budget of Rs 10 crore for this festival. Besides, proposing to construct a tribal museum near the famous Bhoramdev temple at a cost of Rs three crore, the chief minister said a provision of Rs 99 lakh has been made under Mukhyamantri Virasat Jharokha Yojana for display through replicas of ancient crafts, architecture, and artefacts of the state. Similarly, under the Mukhyamantri Dharohar Darshan Yojana, "Dharohar Mitra" will be appointed at state protected monument sites and grants will be given to students of educational institutions for visit, Chief Minister Bhupesh Baghel had informed in his budget speech.
32 | B W BUSINESSWORLD | 17 June 2023 TAND IN LINE” or “wait for your turn” were oft-heard instructions in my school days. These were an integral part of a norm or a cue to form a queue, in many – if not all – parts of the country. If this is yet so, one wonders why it is not imbibed as a habit to be carried forward in later life. In most instances, a queue is formed only when there is enforcement. Instances abound, as evidenced and experienced in daily life. Air travel provides an interesting example; more so, because those involved are a particular segment of our population, with an overwhelming majority being well-educated, urbanbased, and upper-middle-class. AT THE AIRPORT At the point of entry, at check-in counters, and for the security check, there is generally enforcement by guard rails or tapes, ensuring the formation of queues. However, immediately after that, getting one’s hand baggage after x-ray inevitably involves jostling, though it is known that the bags arrive on the basis of first-in, firstout. However, this is minor compared to the virtual battle at the gate. Despite anS nouncements of the boarding order (e.g., “only rows 20 to 30 to board now”), everyone is trying to push their way to the counter. The staff spends half their time examining boarding passes and informing the passenger that his/her turn has not yet come. Possibly, people fear the flight will take off without them, rather like city buses that have no time to wait for all passengers to get in, or trains that depart at a fixed time. THE SCARCITY SYNDROME A possible alternative explanation of the hurry to board – a more rational one – is to make sure that there is space for storing one’s hand baggage in the overhead bins. Given the increasing tendency to carry more and bigger hand baggage (generally beyond the specified size), storage space is a shortage commodity and must, therefore, be appropriated quickly. As a highly-populated and – for long – poor country, the scarcity syndrome is possibly now in our DNA, driving instinctual reactions to quickly capturing the resource in question. The oftenunseemly rush to get on board may, therefore, have a rational basis. This, though, can’t explain the rush to get out. Even before the plane has stopped, half the passengers are standing in the narrow aisle, opening the overhead lockers to get their bags out. In most cases, the cabin crew has abandoned its plaintive pleas to “stay seated till the seat belt sign is turned off ”. Barring a few first-timers, all others know that it will take three to four minutes for the doors to open and, where there is an aerobridge, those in the rear of the plane will have to wait for at least another five minutes. Yet, well over a hundred people are trying to stand, along with a hundred stroller-bags, in an aisle that cannot even accommodate half that number. Doubtless, it helps foreigners understand that we are not only a crowded country, but one in a great hurry! CUE FOR QUEUES By Kiran Karnik COLUMN n KIRAN’S KONTRARIAN KORNER n
17 June 2023 | B W BUSINESSWORLD | 33 The author loves to think in tongue-in-cheek ways, with no maliciousness or offence intended. At other times, he is a public policy analyst and author. His latest book is Decisive Decade: India 2030 Gazelle or Hippo (Rupa, 2021) ORDERLINESS OF A QUEUE In most countries, awaiting your turn in an orderly manner seems to come automatically. Take planes or tourist buses: people – Indians included – disembark systematically, row by row; people in the rear sit comfortably and await their turn. This is certainly easier for all and takes, at best, only a few minutes more. What, then, explains the unseemly haste here? Are other factors in play which militate against the orderliness of a queue? Is time, somehow, more precious in India? Or are we more competitive here, and must always try to be the first? MUMBAI’S QUEUE CULTURE Yet, I do recall – from student days in Mumbai, decades ago – proper queues at bus stops. Unlike the Delhi of today, no rushing, pushing, or jostling to board the bus, and no unease for women. A recent visit to Mumbai indicates a continuation of the queue culture: a popular café, always full, had a systematic, self-formed queue for entry; the same at a supercrowded ice-cream take-away – dozens of customers, but no crowding at the counter and a queue of people awaiting their turn. On the other hand, a famous bakery in Pune had crowds of people trying to reach the counter, with no semblance of a queue. Singapore may take the prize for a city with an orderly, disciplined population: no throwing trash; proper queues when there is a crowd; cars not only in their lane, but in a near-perfect line; not a hair out of place, one might say. Even visiting Indians fall in line – literally and figuratively! Most ascribe this to strict enforcement (I once described Singapore as a fine city; “fine” in both meanings!). Yet, in the examples from Mumbai, neither place had any form of enforcement, and queues were voluntary and organic. AN ISSUE OF CULTURE? What accounts for the inter-city differences: is it an issue of local culture? Do people imbibe this from a young age, in schools or through parents? Or is it the general ethos of a particular city? Here’s an interesting theme for research, a topic for a Ph.D. in psychology or sociology. Apart from academia, corporates too may do well to focus on this: after all, a disciplined workforce is great for productivity and quality. Promoting queues, and discipline on the roads (a topic in previous editions of this column), would aid this and have positive spin-off effects. Funding high quality video clips on the theme – for TV and social media use – would be a worthwhile investment, and could be part of their CSR spend. Meanwhile, the disciplined in endless queues (as at airports) could take heart from Milton: “they also serve who stand and wait”! What accounts for the inter-city differences: is it an issue of local culture? Do people imbibe this from a young age, in schools or through parents? Or is it the general ethos of a particular city? Here’s an interesting theme for research, a topic for a Ph.D. in psychology or sociology. Apart from academia, corporates too may do well to focus on this: after all, a disciplined workforce is great for productivity and quality Photograph by Gendzi
34 | B W BUSINESSWORLD | 17 June 2023 EVERAL economies have been built on the manufacturing sector. Many economies are driven solely on the basis of their manufacturing capacities, and it’s a fact that has not been hidden from India. In this context, India has been considering strategies to increase manufacturing for a very long time, and there have been earnest and effective attempts to do the same in recent years. The Make in India initiative, Production Linked Incentive Schemes for 14 key sectors, National Logistics Policy and the Industrial Corridor Development Programme, are some of the Indian policy efforts in line with ramping up manufacturing in the country. These policy initiatives reflect the importance India has attached to its manufacturing sector. However, the point that growth in the service sector has outlasted that of manufacturing – unlike several other countries – has led to a more active and rigorous push in the sector. It has been a popular belief that the manufacturing sector has enormous potential to create jobs and absorb surplus labour that would otherwise be used in agriculture. Its potential has also been attributed to its capacity to take on unskilled labour for labour-intensive jobs. India has strongly emphasised on its industrial sector to generate an inCOMPETITIVE JOBS AND A DEVELOPMENTAL PATHWAY ARTHSASTRA by Amit Kapoor & Amitabh Kant Clockwise: Amit Kapoor is Chair, Institute for Competitiveness & Lecturer, Stanford University Amitabh Kant is G-20 Sherpa & former CEO of NITI Aayog S creasing number of jobs. The country has been striving hard for a long time to get its industrial industry to add to a rising pool of jobs. But it is crucial to supplement these initiatives with a focus on creating market-competitive jobs. The key to enabling long-term economic growth is to put more emphasis on enhancing workers’ productivity and skill sets. In this context, creating more ‘competitive jobs’ should be the prime focus. Competitive Jobs can be defined as “jobs that provide pathways to higher productivity and enable individuals to earn their own livelihoods and become self-reliant”. In other words, competitive jobs encourage workers to earn their living in the market, support their way of life, and offer chances for long-term skill and productivity growth. These jobs foster an environment where an individual’s output, capability, and value addition can increase. Simply put, a competitive job allows employees to diversify their skill set and increase their value. In this respect, competitive jobs do not let an individual’s capacity to languish. Paul Krugman once wrote, “the capacity of a country to improve its standard of living through time depends almost entirely on its capacity to increase output per worker”. In India, informal employment makes up
17 June 2023 | B W BUSINESSWORLD | 35 a sizable portion of the labour force. In fact, the ability to develop human capital and enhance performance over time is limited by informality and irregularity in employment. With few incentives to invest in the resources that would increase production, it stifles worker capability. Productivity is seen as “essential to addressing today’s many challenges” in the ILO’s Global Employment and Social Outlook 2023 study, and India has the unrivalled ability to lead the increase in global productivity. In India, there were 900 million working-age individuals in 2020, and by 2030, that number will increase by more than 100 million. India’s working-age population is predicted to surpass China’s working-age population in the near future, all due to a growth rate of about 10 million people every year. The debate about the benefits of effectively utilising our demographic dividend is gathering traction. On the other hand, a wave of the digital revolution has slowly made its way across the country, changing lifestyles and means of subsistence. Together, the two aforementioned developments could lay the groundwork for a more prosperous India. The fact that there were 117.8 crore telephone subscribers in India as of 2022, with 44.3 per cent of those subscribers living in rural areas, illustrates the pervasiveness of digitisation. On the Unified Payment Interface, almost eight billion transactions totalling nearly $200 billion, were made in January 2023. Digitisation and a growing youth population can be combined to develop more competitive occupations. India can concentrate on two areas as the landscape of work changes due to the changing nature of work. One involves investing in human capital that has not yet entered the workforce, and the other involves making productivity enhancement a continual process for those already employed. A skilled workforce is only one aspect of the equation. The demand for faster GDP development is also a requirement for India’s competitive job creation. According to McKinsey’s research from 2020, net employment would need to increase by 1.5 per cent annually from 2023 to 2030, while productivity growth was kept at 6.5 to 7.0 per cent annually in order to meet the expanding employment needs. To plan our path towards India’s centennial year, substantial efforts are being made. Amrit Kaal will become a reality not only through one specific pathway but through a number of channels that work in concert to increase the positive effect. The creation of competitive jobs must be prioritised in addition to placing a stronger emphasis on expanding manufacturing. India will ultimately benefit from letting go of the idea that employment in the manufacturing and service sectors are mutually exclusive and putting more effort into creating competitive jobs across all industries. India can concentrate on two areas as the landscape of work changes due to the changing nature of work. One involves investing in human capital that has not yet entered the workforce, and the other involves making productivity enhancement a continual process for those already employed Photograph by Sanjay Sakaria
36 | B W BUSINESSWORLD | 17 June 2023 I COLUMN trying to login, the website sends a push notification to the cellphone via Bluetooth. The user can then approve the login using a PIN, pattern or biometric like fingerprint or facial recognition, whichever is the preferred authentication method setup on the phone. If the public key on the website matches with the private key on the personal device of the user, the login goes through. The notable feature is that the keys are mathematically related, and while the signed data, when returned to the server, can be verified by it with the public key, it doesn’t actually need to know what the key is, to validate it. WHY IS A PASSKEY MORE SECURE? Cybercrime happens due to passwords either being weak or shared via phishing attacks. Passkeys, by their very nature, are more secure since a potential hacker will not only require access to the device on which the notification is sent but also the need to be near the login device. Phishing attacks occur by impersonating websites that users believe are authentic and enter their login credentials. These are then used to breach the accounts of the user. This is not possible with passkeys since only the trusted domain can send the notification. Moreover, passkeys use end-to-end encryption technology and are stored in a vault on the device’s keychain or password manager. The hacker needs access to both the public key and the private key to breach the account. While the public key can be shared, without the private key it is of no use for the hacker. These days, professional hackers employ high speed cloud resources due to which cracking passwords is a piece of cake, but such brute force tactics cannot be used in case of passkeys. According to Kathleen Moriarty, CTO of the Center for Internet Security, “Passkeys are the way of the future in basic internet security as they’re intrinsically more secure and phishing resistant”. She further adds, “Passkeys are an example of what security should be: seamless and invisible to the end user”. NTERESTING THOUGHT. Most people who are active on the internet have several online accounts requiring multiple passwords, ideally unique. From a security perspective, experts recommend that website passwords should be changed every three months and good password protocol dictates the use of different passwords for different accounts, especially ones where financial transactions are undertaken. Add to that, the fact that a strong password requires a combination of mixed case alphabets, letters and special characters mean life is not only not easy but quite complicated and cumbersome. According to FIDO (Fast Identity Online) Alliance, a nonprofit organisation that seeks to standarise authentication, passwords are the root cause of over 80 per cent of data breaches. Enter passkeys, a mode of logging in to portals and apps without passwords; passkeys seem to be the way ahead in securing our online accounts and making them less vulnerable to attacks by hackers. Apple announced passkey support on MacOS Ventura, iOS 16 and iPad OS 16 at its conference in June 2022. Google rolled out passkeys in May 2023. HOW PASSKEYS WORK A passkey works in a manner similar to the two-factor authentication (TFA). It uses Bluetooth authentication instead of Wi-Fi. Bluetooth requires close proximity of the user to the device and this helps verify the identity of the user. Passkeys work on public-key cryptography which essentially means there are a set of digital keys, public and private. The public key resides on the website or app that one is trying to log in to and the private key is on the personal device, most likely a smartphone. When one is n By Jayesh Shah Passkeys in Lieu of Passwords?
17 June 2023 | B W BUSINESSWORLD | 37 The author is a digital transformation expert and currently Executive Director, AutomataPi Solutions ARE PASSKEYS STANDARD FIDO is a set of technology security specifications for strong authentication. It is developed by FIDO Alliance. Another organisation that is doing similar work is the World Wide Web Consortium (W3C). In March 2019, the two came together and announced the Web Authentication (WebAuthn) specification as the official standard for web security. WebAuthn is a webbased API that allows websites to update their login pages to add FIDO-based authentication on supported browsers and platforms. FIDO2 enables users to leverage common devices to easily authenticate online services in both mobile and desktop environments. It addresses the following challenges associated with traditional authentication: l User Experience: Users can log in with PIN, pattern or biometrics. l Security: FIDO2 login credentials are unique across every website and biometrics or other private credentials like passwords remain on the user’s device and are never stored on a server. l Privacy: FIDO keys are unique for each website and hence, cannot be used to track one across sites. l Scalability: Websites can enable FIDO2 via an API call across all supported browsers and platforms on any number of devices. That said, as of now, not all portals and apps support passkeys. Additionally, Google and Apple passkey platforms do not communicate directly with each other. THE FUTURE OF PASSKEYS The question is not whether passkeys will replace passwords; it is, when will it happen? The move is still a few years away, but the pace is increasing with more and more companies jumping on to the bandwagon. Once operating systems like Ubuntu and Linux start offering the functionality and cross-platform compatibility is in place, the pace of adoption will improve considerably. To conclude with the words of Google’s identity and security product manager Christiaan Brand, “Passwords are dead. May we never have to see them, remember them or type them”. The question is not whether passkeys will replace passwords; it is, when will it happen? The move is still a few years away, but the pace is increasing with more and more companies jumping onto the bandwagon. Once operating systems like Ubuntu and Linux start offering the functionality and cross-platform compatibility is in place, the pace of adoption will improve considerably PASSWORDS ARE THE ROOT CAUSE OF OVER 80% DATA BREACHES SOURCE:Fast Identity Online Alliance Passwords are the root cause over 80% of data breaches User have more than 90 online accounts Average help desk labour cost for a single password reset is $70 Up to 51% of passwords are reused 80% 90% $70 51% Photograph by Artemis Diana
38 | B W BUSINESSWORLD | 17 June 2023 N two of my earlier columns for this magazine (Climate Change – 31 December, 2022 and Water Conservation – 17 December, 2022) I have written about the perils of our inadequate action on tackling the challenges posed by climate change and our lack of respect for water. One of the biggest issues that can confront our country –indeed the whole world – is insufficiency of food for the growing population. Public memory being short, we have forgotten about the famines and droughts that India has faced in the past and how food grains were rationed. We have been very lucky with monsoons – almost 50 per cent of our crops depend on monsoons, not the total rainfall in the country but how it is distributed geographically and its timing. Unfortunately, we have become quite smug and complacent about food security as the ‘buffer stocks’ have been more than adequate for several decades. Global Warming There is general agreement in the scientific community that global warming is reducing the productivity as well as the nutrient content of our crops. It is therefore important to be ready with greater coverage of irrigation as against remaining on the mercy of the rain gods, develop more resilient crop varieties and, perhaps most important, identify foods that use less water per unit of food produced. Extreme weather events are now happening with greater frequency; El Nino is hovering close and is very likely to develop this year. We can’t forget the 1877 El Nino which had caused failure of rains and made millions – especially in the South – run away from their withered fields and start begging. An estimated six to eight million had perished in that famine. I am mentioning this tragic case here only to highlight that till the early 1870s most of our farmers were cultivating climate resistant millets and were forced by the I Sustainability By Krishan Kalra Column Food Security British rulers to switch to cash crops like indigo, opium and cotton – not suited to India’s rainfall pattern. The Famine & After Cultivation of millets continued to dwindle and the great Bengal famine of 1943 – that claimed an estimated four million lives – was the catalyst that made the new government of independent India seriously think about bolstering our food situation. In the 1950s and 1960s our starving millions were fed by the largesse of the US government through shiploads of cheap (and bad quality) PL-480 wheat, payable in Indian rupees. Wheat and rice were delivered to all by a Public Distribution System (PDS) against the ubiquitous Ration Cards. Also, we cannot forget ‘no cereal Mondays’ and the ‘guest control order’ – both suggested by the ever so gentle prime minister Lal Bahadur Shastri. If a wedding function had more than 100 Climate Change can quickly shatter our complacency caused by buffer stocks Photograph by Margo555
17 June 2023 | B W BUSINESSWORLD | 39 efficient transportation for distribution is responsible for this. Before I proceed further, I want to make a quick comparison: u of water used for growing rice and wheat vis-à-vis millets v health benefits of the latter and their resistance to the growing menace of climate change. Let me also mention here that 90 per cent of all our fresh water is used for irrigation. Although various studies give different figures, the chart above shows the latest (2019) figures from World Water Review of Water Aid India. Just for some added information, mutton and chicken require nearly 10,000 and 4,000 litres of water respectively for producing every kilo of the same. Of course, by no means am I advocating that everyone becomes a vegetarian because our per capita consumption of non-vegetarian food is just around four kg against 125 kg in the USA and, as such, the non-veg food doesn’t make a big difference to water consumption. guests, you couldn’t serve cereals and pretty much all dishes were based on potatoes, other vegetables and fruits. The Green Revolution Anyway, to cut the story short, all these happenings and the government’s resolve to become self-sufficient in food heralded the famous ‘Green Revolution’. Bore wells were dug by the tens of thousands in generally dry states like Punjab and Haryana which soon became the ‘Grain bowl of India’. It also saw the birth of the controversial MSP (minimum support price), setting up of the Food Corporation of India and the very wise concept of ‘buffer stocks’ to overcome any future droughts and other natural calamities. The Green Revolution was led by the internationally renowned agricultural scientist Dr M.S. Swaminathan – who played a leading role in bringing out highyielding varieties of wheat and rice by adoption of new technologies – not only in India but worldwide, especially in the developing countries. The Green Revolution indeed helped India become food surplus and we even started exporting rice and wheat. It is a fact that our country has not experienced any food shortages over the last half a century! On the flip side, we have become complacent about food security and farmers’ reliance on MSP made them cultivate high water consuming crops like rice, especially in a water scarce state like Punjab. Additionally, we have been losing an average of 10 per cent of our cereals production to rodents, pests and the elements due to inadequate storage and transportation facilities. No fault really of the ‘green revolution’ which literally ‘saved our souls’ but only our lethargy in building enough storage silos and more HIGH YIELD CROPS THAT GUZZLE MORE WATER CROP WATER USED (Litres Per Kg of Production) RICE 2,800 litres/kg WHEAT 1,650 litres/kg MILLETS 1,000 litres/ kg Source: World Water Review of Water Aid India, 2019 Photograph by Blueaperture15 Photograph by Bdspn74
40 | B W BUSINESSWORLD | 17 June 2023 Sustainability By Krishan Kalra Column Millet Eating Nation As I have mentioned already, we were a primarily millet eating nation and switched to wheat and rice, in a major shift, only in the 1960s when millets lost to bumper crops of the latter due to the ‘green revolution’ and the cheaper option of selling through PDS. Whereas millets were always a hardy crop, not overly dependent on regular rains like rice and wheat and so tolerant to harsh weather conditions and droughts. Also, both rice and wheat have a high ‘glycemic index’ which leads to greater risk of diabetes and iron deficiency. Major known millets in India are bajra (Pearl Millet) ragi (Finger Millet) and jowar (Sorghum). On a personal note, a roti of any of these, stuffed with palak (spinach) leaves or grated mooli (horse radish) is a treat that beats the best of gourmet breads. Do try it once. Your only risk is getting hooked! Allow me to quote from an April 2023 interview of the noted economist Benjamin Jones – professor of entrepreneurship and strategy at the Kellogg School of management – with The Economic Times. “Higher temperatures are very costly to a developing economy – a one-degree rise in heat can reduce GDP growth by two percent”; so I am talking about much more than just the risk to the productivity of our crops! There is indeed an urgent need for policy makers and civil society to reflect on the possibility of our switching back, in a major way, to millets and get some insurance for national food security which can get threatened anytime due to the scary march of the deadly climate change. Let me end on a positive note. As per a March 2023 report, in Gurgaon district of Haryana, about 300 acres of land shifted from paddy to other crops in response to a ‘crop diversification drive’ of the government, under which farmers were paid a compensation of Rs 7,000 per acre. Things are changing. The author is Trustee of The Climate Project Foundation, India and past president of AIMA and past BOG member of IIMC Photograph by Ricky Soni Photograph courtesy: Arundhati@callistainteriors There is indeed an urgent need for policy makers and civil society to reflect on the possibility of our switching back, in a major way, to millets and get some insurance for national food security which can get threatened anytime due to the scary march of the deadly climate change
17 June 2023 | B W BUSINESSWORLD | 41 I N an exclusive interaction, Dr Pankaj Jethwani, Partner at W Health Ventures, talks about the healthtech sector’s remarkable growth story in India, emerging trends in healthcare services, and the company’s future plans How is the healthtech sector doing in India? The healthtech sector has been growing at a commendable CAGR of 39 per cent in the last few years and is expected to be a massive $50 billion industry by 2033. This growth is fuelled by the rapidly multiplying number of healthtech startups. Today, there are over 9,000 healthtech startups in India. As the sector is growing, the services offered are expanding beyond basic healthcare services, like teleconsultation, e-pharmacies, booking platforms, etc. that the first wave of healthtech innovation took to people’s doors. What are the trends which will shape how healthcare services are accessed and provided? The next wave of healthtech innovation will introduce newage vertically integrated care models or single-specialty services companies. These will be built in underserved or under-organised clinical sectors like pain management, weight loss, oncology, respiratory health, etc. These segments “We aim to positively impact 100 million lives” have a large TAM (Total Addressable Market) and comprise patients with high LTVs (lifetime value). Most importantly, there is an opportunity to improve patient experience and clinical outcomes by providing a 10x better product/service. These are factors that investors look at closely and will thus attract investment. There has been a welcome pivot among startups from online-only models to omnichannel. Startups must continue building an omnichannel strategy to reap the benefits of both channels -- offline (cheaper acquisition cost, higher customer value, deeper trust) and online (inexpensive to set up compared to physical set-ups, wider reach, 24x7, and point-ofcare solutions). Within our portfolio, Elevate Now is building obesity clinics in partnership with local KOLs in addition to selling virtual obesity subscription plans. Another growing trend is, Indian healthtech companies are building products and services to address the growing global demand for digital solutions from healthcare organisations.. Finally, we are already seeing entrepreneurs leverage AI for various use cases like medical imaging diagnosis, clinician assistance and augmentation, patient engagement, etc. This field will burgeon with large language models with use cases that are more clinical in nature. Please tell us about W Health Ventures’ goals and plans. W Health Ventures is committed to building the future of healthcare delivery in India through investments and incubations. We aim to positively impact 100 million lives via our companies. In the last three years, we have invested in eight companies across diabetes, pregnancy, sexual health, mental health, physical therapy, and oncology in India and the US, and have incubated three ventures across weight loss, pain management, and healthcare technology services. We aim to continue to support the healthcare startup ecosystem by exploring upcoming technologies to study them for healthcare uses, building and backing strong teams solving important, unaddressed patient problems, and striving for improved patient experience and clinical outcomes through our companies. By Team BW INTERVIEW Dr Pankaj Jethwani, Partner at W Health Ventures
42 | B W BUSINESSWORLD | 17 June 2023 Will the angel tax exemption granted to foreign investors promote GIFT City or drive existing investors to foreign climes? BW Businessworld speaks to financial market experts for a holistic view of the situation By Nitesh Kumar IN DEPTH ANGEL TAX EXEMPTION HE DECISION of the Central Board of Direct Taxes (CBDT) to exempt investors from 21 nations from the “angel tax” – a levy imposed on the capital raised by a startup since 2012 – seems to have evoked strong feelings among the investor community, but some of them may just be looking a GIFT (read Gujarat International Finance TecCity) horse in the mouth. The “angel tax,” was originally introduced in 2012 as an amendment to the Income Tax Act Section 56 (2) (vii b) to discourage inflow of unaccounted funds into the country and prevent money laundering through the subscription of shares of a privately held company at a higher rate than the fair market value (FMV) of the firm’s share. The tax was initially imposed only on domestic investors in startups, but the Union Budget for the 2023-23 fiscal now brings both foreign investors and non-resident Indian (NRI) investors within its ambit. The 26 May Union Finance Ministry notification now says that residents of 21 nations, namely the United States, United Kingdom, Australia, Germany, Spain, Austria, Canada, the Czech Republic, Belgium, Denmark, Finland, Israel, Italy, Iceland, Japan, Korea, Russia, Norway, New Zealand, France and Sweden will be exempted from the angel tax. The notification seems to attempt to attract more foreign direct investments (FDI) into India from countries that have a strong, well-regulated framework. Financial sector experts point out that the notification aligns with the government’s primary goal of restricting the flow of unreported T LOOKING A GIFT HORSE IN THE MOUTH? Photographs courtesy: Gift City
17 June 2023 | B W BUSINESSWORLD | 43 “The government should focus on ensuring compliance and KYC of our laws, not cherrypicking like this. Investors should have the choice of location from which they invest so long as they pay any taxes in India, comply with KYC, etc.” MOHANDAS PAI, Chairman at Aarin Capital funds or “black money” by bringing FDI within the purview of the angel tax. The decision is also being seen as an attempt to promote India’s very own tax haven – the Gujarat International Finance Tec-City (GIFT) – a smart city that lies between Gandhinagar and Ahmedabad. The GIFT City was formed under the Special Economic Zone Act, 2005 as India’s first International Financial Services Centre (IFSC). The IFSC was declared a multi-service Special Economic Zone (SEZ) in 2015 to attract foreign investment and the Union Budget 2016-17 bestowed upon it a competitive tax regime. Since then it has indeed, evolved into a hub of banks, capital market entities, financial services and some captive manufacturing industries too. The 26 May notification of the Union finance ministry specifically excludes investments from tax havens around the world like Singapore, the Netherlands, Mauritius, Luxembourg and the UAE from the angel tax exemption. Other entities also excluded from the exemption include those registered with SEBI as Category-I FPI (foreign portfolio investors), Endowment Funds, Pension Funds, broad-based pooled investment vehicles with more than 50 investors and agencies with 75 per cent of government ownership. Obviously, the notification strives to attract more startups to the Gujarat International Finance Tech City, even those that had previously preferred tax havens like Mauritius and Singapore. Ironically, the tax havens excluded from the angel tax exemption, together account for over 50 per cent of the FDI into India – and thereby hangs a tale. Department for Promotion of Industry and Internal Trade (DPIIT) data shows that Singapore was the top investor during the 2022-23 financial year with $17.2 billion having come into India in the way of FDI, followed by Mauritius ($6.13 billion), the United States ($6 billion), the United Arab Emirates ($3.35 billion) and the Netherlands ($2.5 billion). Note that the US is the only destination in this list that is not a tax haven. The total FDI inflows (comprising equity inflows, reinvested earnings and other capital) fell by 16 per cent in the fiscal gone by to $70.97 billion from $84.83 billion in the 2021-22 financial year. Startup Funding Many financial market experts feel that the government’s attempt to close tax haven loopholes for investments may actually boomerang on funding for startups. The exclusion of tax-friendly countries from the angel tax exemption may have a huge negative impact on raising capital, say the knowledgeable in the financial sector. “Investors choose these jurisdictions for ease of business, certainty of laws, consolidated offices and management, etc. The government should focus on ensuring compliance and KYC of our laws, not cherry-picking like this. Investors should have the choice of location from which they invest so long as they pay any taxes in India, comply with KYC, etc.
44 | B W BUSINESSWORLD | 17 June 2023 IN DEPTH There is no reason why you give exemption from angel tax for investment from the UK but not from Singapore, even for the same investor,” says Mohandas Pai, Chairman at Aarin Capital. Others feel that there was a high possibility of startups (that now draw investment from the international tax havens) shifting their locations to new geographies to bypass the angel tax. Moreover, it would eventually push fewer startups into the unicorn club. “There could be an impact on the speed of creation of unicorns as the funds that currently come only through these geographies may be impacted by angel tax issues,” explains Vikram Gupta, Founder and Managing Partner, IvyCap Ventures. GIFT & the Tax Havens “The specific exclusion of tax havens from the list may potentially compel foreign investors to alter their valuations to avoid tax, regardless of justifiable grounds for a valuation premium. The exemption of tax-friendly countries may force early-stage startups to move out of India,” cautions Gupta. He feels that investors may insist on startups changing their holding structures. “However, changing holding structures at the late stage of a company is expensive and may not align with all the shareholders of the company,” he points out. “There have been increased efforts to promote investments through the GIFT city. Going forward, we will see more and more investors coming from other geographies but using Mauritius, Singapore, Ireland, the Netherlands, Luxembourg to come via the GIFT City if they want to not be impacted by Angel Tax issues,” Gupta goes on to say. Pai emphasises that “GIFT needs marketing to become more popular, not any short cuts like this. This will not work if the government thinks shutting out Singapore will make GIFT more popular. GIFT will grow on its own good policies, not changes like this. GIFT is fast-growing and does not need crutches but good policy.” Interestingly, the number of firms actually qualified to receive the angle tax exemption could be below five per cent of Indian startups registered with the DPIIT. “There could be an impact on the speed of creation of unicorns as the funds that currently come only through these geographies may be impacted by angel tax issues” VIKRAM GUPTA, Founder & Managing Partner, IvyCap Ventures ANGEL TAX EXEMPTION
17 June 2023 | B W BUSINESSWORLD | 45 The Chhattisgarh Chief Minister Bhupesh Baghel inaugurated the National Ramayana Festival at Ramleela Maidan in Raigarh district on Thursday 1st June. The festival, being organised from 1 to 3 June, witnessed cultural performances from across the globe. It may be noted that this is the first time that the festival is being organised in Chhattisgarh. At this mega event, devotional performances based on Ramkatha were staged by Ramayana troupes from 12 states of the country as well as those from Cambodia and Indonesia. Through these performances, people got to see a glimpse of various diverse national-global forms of Ramkatha. The competition of Ramayana Mandalis based on the Aranya Kand of Ramayana commenced on the first day, and the nationally renowned artists arrived in Chhattisgarh to stage their musical performances at ‘Bhajan Sandhya’ of the Ramayana Festival. Ramayana teams from Kerala, Karnataka, Odisha, Assam, Goa, West Bengal, Uttar Pradesh, Himachal Pradesh, Maharashtra, Jharkhand, Madhya Pradesh and Chhattisgarh have participated in this national festival. Addressing the audience, the CM Ramayana Festival Kickstarts In CHHATTISGARH Ram, considering him nephew and revering him accordingly. Highlighting the diverse facets of Lord Ram’s character, Chief Minister Baghel emphasised that Chhattisgarh’s relationship with Lord Shri Ram extends beyond just the exile period. It encompasses the connection with Shabri’s Ram and Kaushalya’s Ram, showcasing the multifaceted nature of his connection. The Three-day National Ramayan Festival concluded in Chhattisgarh on 3 June. Chief Minister Bhupesh Baghel performed a maha-aarti in Raigarh and prayed for the happiness and prosperity of the state’s people. Baghel also carried out ‘deepdan’ using diya (lamp) made from cow dung. On the concluding day, the Ramayana Mandalis from Kerala, Uttar Pradesh, West Bengal, and the Dantewada district of Chhattisgarh enthralled the audience with soulful performances on the Aranya Kand of the epic Ramayana. Each Ramayana Mandali performed a musical drama depicting Lord Shri Ram’s stories in the traditional costumes of their region and their own distinctive style, showcasing heart-touching performances. The Ramayana Mandali from Kerala captivated the audience with a mesmerizing performance based on Lord Shri Ram’s stories in traditional folk costumes. They showcased a soulful performance, depicting events ranging from the Surpanakha episode to the slaying of Ravana, accompanied by captivating background music. Adorned in vibrant traditional costumes, the artists beautifully showcased the glory of Lord Shri Ram in the Kerala style, blending devotion and emotion. The eye-catching colorful attire of the group members, along with the classical dance style of Kathakali, added an overall charm to their performances. The three-day festival was inaugurated by the Chief Minister and brings the best of cultural performances from across the globe said that “Lord Shri Ram belongs to everyone, including Nishadraj and Shabri.” He highlighted the dual form of Lord Shri Ram, who is both ‘Nirakara’ and ‘Sakara’, and emphasised that believers connect with him in both these forms Referring to the rich cultural heritage of Chhattisgarh, Chief Minister Baghel spoke about the state’s deep connection with Lord Shri Ram. Chief Minister Baghel emphasised that despite facing numerous challenges, Lord Shri Ram never compromised his dignity. He spent a significant period of his exile, ten years, in Chhattisgarh, forging a deep connection with the state. The Chief Minister further expressed that the people of Chhattisgarh have a special relationship with both the Vanavasi (exile) Ram and the Kaushalya’s
46 | B W BUSINESSWORLD | 17 June 2023 ReNew founder & CEO Sumant Sinha outlines why the clean energy sector holds enormous potential for entrepreneurs IN FOCUS ENERGY BRIMMING WITH ENERGY By SUMAN K. JHA
17 June 2023 | B W BUSINESSWORLD | 47 “The clean energy sector needs $500 billion to $600 billion of investments in the next eight to ten years. The total amount of investments by Corporate India every year is about $100 billion” OR FORMER WALL STREET banker Sumant Sinha, who headed the retail business for the Aditya Birla Group at the beginning of his career in India, ReNew is all about renewing his commitment to a cleaner, greener future, every single day. It was more than 15 years ago that Sinha had the foresight that climate change would impact one and all. And, that it would be a business opportunity as well. From Aditya Birla Group, Sinha went on to work for Suzlon Energy. Later, he founded ReNew Power, now rebranded as ReNew, a leading decarbonisation company. In an interview with BW Businessworld, Sinha, Founder, Chairman and CEO, ReNew, opened up on the group’s future plans, the road ahead and the challenges. “Today, we have about 8 gigawatt (GW) commissioned capacity, and another 6 GW in the pipeline. Over the next five to 10 years, we expect to grow our portfolio manifold in alignment with the government’s target,” said Sinha. ReNew is projected to become a 30- GW firm in the next ten years or so, if it continues with the current growth momentum. “ReNew has planned a capex of almost Rs 30,000 crore in this fiscal,” making it “one of the top 10 asset creating companies in India”. With around 4,000 MW of wind capacity, ReNew is the largest wind energy company in India. In terms of commissioned capacity, ReNew is India’s largest renewable energy company with capacity of about 8 GW. The company says it is likely to go up to 14 GW in the next two years. Currently, ReNew has around 10 per cent market share in India’s renewable sector. It generates more than 1 per cent of India’s electricity capacity. ReNew operates more than 150 utility scale projects spread across 18 states in India. Its revenues grew to Rs 6,919.5 crore in FY22, registering a 27 per cent jump over last year. New Goalposts Sinha is working towards new milestones. “Renew has a prominent role in figuring out how to make renewables more acceptable to the grid. We’ve come up with pioneering solutions like round-the-clock power and peak power projects and so on. We will have to consider market development in those product areas,” he says. He further explains “In the overall renewable energy paradigm, ReNew sees itself as a leading company that will help corporates in decarbonising their energy baskets. Of the capacity that we would have in the next five to seven years, at least 20-25 per cent will come from directly dealing with the corporate sector.” ReNew now aspires to be the “decarbonisation partner of choice for governments and corporates alike”. The company is developing a 210 MW solar energy project for Amazon as part of its first utility-scale renewable energy project in India. It has also F
48 | B W BUSINESSWORLD | 17 June 2023 signed an agreement with Microsoft India to produce 150 MW of clean energy. With the government announcing the Green Hydrogen Mission early this year, ReNew is exploring to tap opportunities in the emerging sector. It has signed a framework agreement for setting up a green hydrogen production facility in Suez Canal area in Egypt. Explaining why green hydrogen and a policy around it is important, Sinha says, “We need to become energy independent by 2047. It’s important to understand that electricity forms only about 20 per cent to 25 per cent of the total energy basket. In electricity, we have a reasonably well-laid out path now, and I am confident that by 2030 we will get to 500 GW. In the next 10 to 20 years after that, that number would’ve gone up to 70 to 80 per cent. The coal usage would’ve gone down hopefully by that time, and renewable capacity would’ve picked up even more.” He further adds: “If you look at the other areas of energy, there are forms of transportation, shipping, railways. If you look at aviation, or industrial processes, a lot of all that can get decarbonised through hydrogen. Therefore, green hydrogen is a very important tool for us in making India decarbonised by 2047… Right now, it’s still early days simply because the cost of green hydrogen is still high. One of the important things that the government is thinking about is whether there should be mandates for people to move to green hydrogen usage. If that happens, it can really create the market for green hydrogen.” Challenges Along the Way While ReNew sees itself aligned with national agenda like the 2030 target of 500 GW electricity capacity from non-fossil fuel, the road ahead is not without challenges. For India to meet the 2030 target of 500 GW of clean energy, “Industry will have to scale up”. Says Sinha: “To reach the 500 GW milestone, we have to go at the rate of 50 GW a year. In other words, three times the current pace. While the public sector will also contribute, a bulk of the investment will have to come from the private sector… There is sufficient capital available, but we have to make sure that the capital is able to get the right kind of returns with the right kind of risk.” In April, ReNew raised $400 million through green bonds, which received strong demand from investors in the US, Europe and Asia as it restarted the high-yield issuance out of India after a broad market hiatus of more than a year. The order book was oversubscribed about 4 times with a total investor demand aggregating in excess of $1.5 billion. There are other bottlenecks “that need to be addressed”. Explains Sinha: “We also have to look at the constraints on the ground. For example, the issues around land acquisition and transmission infrastructure, equipment supply and so on.” “The goal set by the Prime Minister is ambitious, but it is absolutely achievable. The only constraints could be volatile global supply chains— we are highly dependent on imports for solar cells and modules, wind turbines etc — a problem that we at ReNew are proactively trying to solve for,” adds Sinha. Active Policy Support The ReNew CEO, however, is convinced that the government thrust on clean energy and thus the policy ori- “In the overall renewable energy paradigm, ReNew sees itself as a leading company that will help corporates in decarbonising their energy baskets. Of the capacity that we would have in the next five to seven years, at least 20-25 per cent will come from directly dealing with the corporate sector”
17 June 2023 | B W BUSINESSWORLD | 49 tinue to evolve and we have to find ways of making this journey cleaner, greener and cheaper. Some of the technological solutions are at hand, many more will evolve with time, and we must create the proper enabling environment where such changes can easily be adopted in a commercial and climatefriendly manner.” There are plenty of learnings from Sinha’s own entrepreneurial journey. “First of all, you have to take risks; without taking risks, nothing happens. But you have to be smart about how you take that risk. Two, you need to ensure that you don’t overextend yourself in any area, whether it’s on the financing side or in any other area. Three, it’s very important to build a good organisation if you really want to scale up.” [email protected] entation has been a big boost for industry. “The Indian government has been remarkably supportive over the past nine years. I think a lot of that is coming directly from Prime Minister Narendra Modi. I think he has a very strong recognition of the fact that climate change is a very critical issue for us,” says Sinha. Among the milestones in ReNew’s journey, Sinha said getting Goldman Sachs as the first investor with an investment of $250 million was important. It got its first wind farm in Gujarat inaugurated by Prime Minister Modi, who was Chief Minister of Gujarat then. ReNew was the first Indian renewable energy producer to be listed on Nasdaq. Now, with a manufacturing facility in Rajasthan, the company hopes to double its 2,500-strong workforce in FY24. It has also set up an academy “to enable skill upgradation of its workforce”. Big Investments Needed Talking about the “enormous potential” that the clean energy sector holds, Sinha says: “This sector needs $500 to $600 billion of investments in the next eight to ten years. To give a perspective, the total amount of investments by corporate India every year is about $100 billion investments.” In his book Fossil Free: Reimagining Clean Energy in a Carbon Constrained World, Sinha writes in the “Introduction”: “The story that we are about to embark on, the future that we need to embrace, the vision that we have to unveil, needs similar epoch-defining discoveries. Energy will be the fulcrum around which the human race will con-
IN DEPTH CORPORATE Sanjiv Mehta, CEO & MD, HUL