Indian Economy : News,Discussions & Updates
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And we will tax foreign companies. Simple.
In the meantime, we will welcome all the outsourcing jobs.
Don't you think its time for India to get out of outsourcing, move up the value chain so to speak ?
India Picks New Site For $44B Aramco-ADNOC Mega Refinery
By Tsvetana Paraskova - Jun 19, 2019, 6:00 PM CDT
The Indian state of Maharashtra has identified a new location where India, in partnership with the state oil companies of Saudi Arabia and the UAE, plans to build a giant US$44-billion refinery, the chief minister of Maharashtra state, Devendra Fadnavis, said on Wednesday.
In June last year, Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) signed a framework agreement and a memorandum of understanding with a consortium of Indian national oil companies to join the mega project in the Maharashtra state on India’s west coast. Saudi Aramco and ADNOC will jointly own 50 percent of the new joint venture company RRPCL, while the other 50 percent will be held by the Indian consortium. The parties agreed to explore a strategic partnership and co-investment in the development of the US$44 billion mega refinery.
By investing in the giant Indian refinery, the national oil companies of leading OPEC producers Saudi Arabia and the UAE would secure off-take for their crude in a strategic fast-growing oil market in Asia.
However, the process of land acquisition for the new giant complex was put on hold late last year due to strong opposition from local farmers at the initially identified location. Farmers opposed the choice for the giant refinery because many of them depend on their land for their income and livelihoods.
After the suspension of the land acquisition at the previous site, Fadnavis announced in February this year that the refinery would be relocated to another site, without specifying it.
Now the Maharashtra state has picked the new location, in the Raigad district, some 62 miles (100 kilometers) south of Mumbai, Reuters quoted Fadnavis as saying in a written reply to lawmakers in Maharashtra state.
The previously proposed site at Nanar lies around 248 miles (400 kilometers) south of Mumbai.
A state-run City and Industrial Development Corporation plans to buy land from around 40 villages in the Raigad district for the refinery, Fadnavis told lawmakers, as carried by Reuters.
Alongside investment in the mega refinery, Saudi Arabia has recently pledged to invest US$100 billion in India’s energy sector in its continued efforts to lock in future demand for its oil on the fastest-growing Asian markets.
India Picks New Site For $44B Aramco-ADNOC Mega Refinery | OilPrice.com
By Tsvetana Paraskova - Jun 19, 2019, 6:00 PM CDT
The Indian state of Maharashtra has identified a new location where India, in partnership with the state oil companies of Saudi Arabia and the UAE, plans to build a giant US$44-billion refinery, the chief minister of Maharashtra state, Devendra Fadnavis, said on Wednesday.
In June last year, Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) signed a framework agreement and a memorandum of understanding with a consortium of Indian national oil companies to join the mega project in the Maharashtra state on India’s west coast. Saudi Aramco and ADNOC will jointly own 50 percent of the new joint venture company RRPCL, while the other 50 percent will be held by the Indian consortium. The parties agreed to explore a strategic partnership and co-investment in the development of the US$44 billion mega refinery.
By investing in the giant Indian refinery, the national oil companies of leading OPEC producers Saudi Arabia and the UAE would secure off-take for their crude in a strategic fast-growing oil market in Asia.
However, the process of land acquisition for the new giant complex was put on hold late last year due to strong opposition from local farmers at the initially identified location. Farmers opposed the choice for the giant refinery because many of them depend on their land for their income and livelihoods.
After the suspension of the land acquisition at the previous site, Fadnavis announced in February this year that the refinery would be relocated to another site, without specifying it.
Now the Maharashtra state has picked the new location, in the Raigad district, some 62 miles (100 kilometers) south of Mumbai, Reuters quoted Fadnavis as saying in a written reply to lawmakers in Maharashtra state.
The previously proposed site at Nanar lies around 248 miles (400 kilometers) south of Mumbai.
A state-run City and Industrial Development Corporation plans to buy land from around 40 villages in the Raigad district for the refinery, Fadnavis told lawmakers, as carried by Reuters.
Alongside investment in the mega refinery, Saudi Arabia has recently pledged to invest US$100 billion in India’s energy sector in its continued efforts to lock in future demand for its oil on the fastest-growing Asian markets.
India Picks New Site For $44B Aramco-ADNOC Mega Refinery | OilPrice.com
What out sourcing ?? I am talking about top of the line development done in Apple, Google, Facebook, Qualcomm, Broadcom, Nvidia, Amazon etc etc. You name a company, you will find Indian H1Bs in each and every development team. Due to stupid green card quota, Indians who came after 2008 to US are still struck with H1B (Except EB1 folks). Some of them have reached to director level in FAANG companies, yet don't have green card. Any product line will collapse without the foot soldiers i.e. engineers and first line managers. Imagine Trump sending these guys out of US
!!
I know about our exploits in many foreign MNCs. I wasn't talking about that. I meant companies like TCS, Infosys, TechMahindra have enough money in their kitty, why not invest heavily in R&D and make products sellable to consumers instead of doing back office/support work for other companies.What out sourcing ?? I am talking about top of the line development done in Apple, Google, Facebook, Qualcomm, Broadcom, Nvidia, Amazon etc etc. You name a company, you will find Indian H1Bs in each and every development team. Due to stupid green card quota, Indians who came after 2008 to US are still struck with H1B (Except EB1 folks). Some of them have reached to director level in FAANG companies, yet don't have green card. Any product line will collapse without the foot soldiers i.e. engineers and first line managers. Imagine Trump sending these guys out of US
Is "B to C" not as profitable as "B to B" ?
Yeh kya hogaya ?
7 mn jobs created in formal sector in 2015-18: Report
A report by IMRB Kantar on India's flexi staffing says demonetisation and GST did not stop job creation.
7 mn jobs created in formal sector in 2015-18: Report
7 mn jobs created in formal sector in 2015-18: Report
A report by IMRB Kantar on India's flexi staffing says demonetisation and GST did not stop job creation.
7 mn jobs created in formal sector in 2015-18: Report
Agree. TCS now values more than IBM, but if you consider R&D, its a different game altogether
With $120.5 billion m-cap, TCS valued more than IBM - Times of India ►
You are absolutely right. But these greedy assholes just want quick money without taking any risks whatsoever. We have enough talent to develop any damn system, yet none of the Indian companies take any steps in that direction. You will be surprised how companies with 20-30 engineers in some small obscure town in Europe are able to design world class chips. Yet in India, in spite of having thousands of trained engineers, we never see that kind of initiative !! It's high time we get rid of that slave mentality and learn to take some risk.
Is Indian Banking System heading for Liquidity Crises never seen before? What investors should do? HDFC AMC has renewed the FMP by 12 months. Kotak AMC is facing the payment issues for its FMP due to exposure to ZEE and other companies. SBI has taken over JET. LIC has taken over IDBI BANK. Many PSU banks have been merged. Where are we heading looking at these incidents? If you look at the govt. statistics, everything is the best. They have given the first installment of Rs.2000 to the farmers and things like that. But if you just go little deep you will find that ………
1. Banks are doing businesses other than banking – SBI is flying planes of JET!!
2. Insurance companies are running BANKS!!
3. Mutual fund investors are getting a promise to get their money as and when the lenders give money back to mutual funds.
4. Your customers are promising you that they will send money for their overdue payments.
In short, the above is an illusion that everything is OKAY. Banks are feeling safe now, but the end results will be more negative than what it appears today. What does it MEAN for BANKING and NBFC stocks?
Long back BUFFETT had said he would never invest in BANKS. Today 61% of BUFFETT portfolio is into 5 banks or financial companies!! Buffett has a problem of plenty of money and he would have got these companies by force or by choice. His plus point is that he is in the USA, where the Helicopter BEN printed new money and recapitalised all banks.
In India – those who had invested in now-defunct UTI guaranteed schemes – had not got a single penny as per the promise. US – 64, the star performing fund, had lost lakhs and crores of the small and HNI investors. We have seen what happened to GLOBAL TRUST BANK – now taken over by Oriental Bank of Commerce. There is a small bank in Mumbai – KAPOL Co-Op Bank. The bank is closed by RBI and now the deposit holders are not getting their full money.
Today LIC money is considered 100% safe as it is guaranteed by parliament law. I am unable to see how LIC will pay to all the policyholders – the way it is being asked to invest by CENTRAL Govt in PSU dis-investments or taking over sick banks.
Private insurers are chasing return in the form of Unit Linked plans. The way Mutual Fund guys have lost in DEBT funds, I am seeing the same thing would be happening in Private Insurer’s investments also.
So, banks, mutual funds, and insurance companies are going to face the heat of BANKRUPTCY going forward.
The FUNNY aspect of solving Bankruptcy?
Most of the companies are being sold at 20-40% of the loan amount. Now, to pay that 20-40%, the taking over companies are taking new loans to pay to the banks. Let us say Tata Steel took over Bhushan steel. Now, the banks got 40% from the Tata Steel. But Tata Steel didn’t have the cash to pay that. So, banks gave a loan to TATA STEEL. Technically, what happened is BANKS lost 100% of the BHUSHAN and paid another 40% to TATA to take over BHUSHAN. (one may argue that TATA STEEL will return the capital some day and pay the interests regularly – but today BANKs had to top up the loan by 40% !!)
My Marwari friend used to say a very good saying in their language on this scenario. He says “Sau(100) ke HUE SAATH(60). Aadhe gaye NAATH. 10 de denge. 10 dilwa denge or 10 me kya lena or dena. Meaning of this is – from Rs.100, they decided to give Rs.60. Now they say they can give only Rs.30. From that Rs.30, He will give Rs.10, he will ask somebody to pay Rs.10 and now don’t cry for Rs.10 which is the balance. It means all Rs.100 gone.
This by accounting standards is a perfect deal and makes the balance-sheets of banks looks strong.
In this kind of deals – the deal makers make the hefty commissions for finding a suitor for sick companies. This is an additional cost to the banks or financial institutions. What NEXT?
We all are sitting on a CREDIT TIME BOMB. The clock is ticking.
Interesting forward from WhatsApp.
1. Banks are doing businesses other than banking – SBI is flying planes of JET!!
2. Insurance companies are running BANKS!!
3. Mutual fund investors are getting a promise to get their money as and when the lenders give money back to mutual funds.
4. Your customers are promising you that they will send money for their overdue payments.
In short, the above is an illusion that everything is OKAY. Banks are feeling safe now, but the end results will be more negative than what it appears today. What does it MEAN for BANKING and NBFC stocks?
Long back BUFFETT had said he would never invest in BANKS. Today 61% of BUFFETT portfolio is into 5 banks or financial companies!! Buffett has a problem of plenty of money and he would have got these companies by force or by choice. His plus point is that he is in the USA, where the Helicopter BEN printed new money and recapitalised all banks.
In India – those who had invested in now-defunct UTI guaranteed schemes – had not got a single penny as per the promise. US – 64, the star performing fund, had lost lakhs and crores of the small and HNI investors. We have seen what happened to GLOBAL TRUST BANK – now taken over by Oriental Bank of Commerce. There is a small bank in Mumbai – KAPOL Co-Op Bank. The bank is closed by RBI and now the deposit holders are not getting their full money.
Today LIC money is considered 100% safe as it is guaranteed by parliament law. I am unable to see how LIC will pay to all the policyholders – the way it is being asked to invest by CENTRAL Govt in PSU dis-investments or taking over sick banks.
Private insurers are chasing return in the form of Unit Linked plans. The way Mutual Fund guys have lost in DEBT funds, I am seeing the same thing would be happening in Private Insurer’s investments also.
So, banks, mutual funds, and insurance companies are going to face the heat of BANKRUPTCY going forward.
The FUNNY aspect of solving Bankruptcy?
Most of the companies are being sold at 20-40% of the loan amount. Now, to pay that 20-40%, the taking over companies are taking new loans to pay to the banks. Let us say Tata Steel took over Bhushan steel. Now, the banks got 40% from the Tata Steel. But Tata Steel didn’t have the cash to pay that. So, banks gave a loan to TATA STEEL. Technically, what happened is BANKS lost 100% of the BHUSHAN and paid another 40% to TATA to take over BHUSHAN. (one may argue that TATA STEEL will return the capital some day and pay the interests regularly – but today BANKs had to top up the loan by 40% !!)
My Marwari friend used to say a very good saying in their language on this scenario. He says “Sau(100) ke HUE SAATH(60). Aadhe gaye NAATH. 10 de denge. 10 dilwa denge or 10 me kya lena or dena. Meaning of this is – from Rs.100, they decided to give Rs.60. Now they say they can give only Rs.30. From that Rs.30, He will give Rs.10, he will ask somebody to pay Rs.10 and now don’t cry for Rs.10 which is the balance. It means all Rs.100 gone.
This by accounting standards is a perfect deal and makes the balance-sheets of banks looks strong.
In this kind of deals – the deal makers make the hefty commissions for finding a suitor for sick companies. This is an additional cost to the banks or financial institutions. What NEXT?
We all are sitting on a CREDIT TIME BOMB. The clock is ticking.
Interesting forward from WhatsApp.
What out sourcing ?? I am talking about top of the line development done in Apple, Google, Facebook, Qualcomm, Broadcom, Nvidia, Amazon etc etc. You name a company, you will find Indian H1Bs in each and every development team. Due to stupid green card quota, Indians who came after 2008 to US are still struck with H1B (Except EB1 folks). Some of them have reached to director level in FAANG companies, yet don't have green card. Any product line will collapse without the foot soldiers i.e. engineers and first line managers. Imagine Trump sending these guys out of US
We speak of reigning in brain drain and do little about it, but Trump will do it for us.
It seems Delhi is getting serious with the trade war thingy. Things are about to get interesting, that too very soon. Pompeo is coming to town in about 4 days from now.
India to counter US protectionism with e-commerce, data security bills
Trade relations between India and the US deteriorated after Washington on June 5 withdrew benefits for Indian exporters under the Generalised System of Preferences (GSP) programme.
First Published: Jun 19, 2019 05:41 IST
Updated: Jun 19, 2019 07:57 IST
Rajeev Jayaswal and Rezaul H Laskar, New Delhi
After retaliating against the US withdrawal of preferential treatment for its exports, New Delhi plans to counter Washington’s growing protectionism with two pieces of legislation that can have wide-ranging impact on American firms.(Bloomberg Photo)
After retaliating against the US withdrawal of preferential treatment for its exports, New Delhi plans to counter Washington’s growing protectionism with two pieces of legislation that can have wide-ranging impact on American firms, according to officials familiar with the matter.
Trade relations between India and the US deteriorated after Washington on June 5 withdrew benefits for Indian exporters under the Generalised System of Preferences(GSP) programme. India imposed retaliatory tariffs on 28 American products from June 16 -- a decision it had put off for almost a year.
While the India-US strategic partnership and cooperation on key issues such as counter-terrorism continue to be robust, the Indian side is looking to the visit by secretary of state Mike Pompeo on June 25-26 to clear the air on several trade matters that have become irritants, such as US sanctions on Iranian oil imports, the ending of GSP benefits, and tariffs.
Of the two proposed laws, the e-commerce policy is aimed at streamlining online trade, currently dominated by American companies such as Google, Facebook, Twitter, Amazon and Flipkart.
The proposed Personal Data Protection Bill calls for firms to protect personal data of Indians, such as health and financial data, religious or political affiliation, caste, sexual orientation and bio-metrics, by storing all data in India, government and industry officials said on condition of anonymity.
Multinational companies (MNCs), particularly American ones, are lobbying for a liberal e-commerce policy with virtual autonomy in possession and use of private data, which the proposed legislation aim to regulate, officials said.
The proposed laws assume significance as the two countries are expected to negotiate crucial trade-related issues when Pompeo holds meetings in New Delhi on June 26.
Besides discussions with his Indian counterpart S Jaishankar, Pompeo will meet Prime Minister Narendra Modi and national security adviser Ajit Doval, people familiar with the developments said. These meetings will also prepare the grounds for Modi’s meeting with US President Donald Trump – his first since his re-election – on the margins of the G20 summit in Osaka, Japan, on June 28-29, the people said.
The people said some work is already being done by the two sides behind the scenes to narrow differences before Pompeo’s arrival. “A lot will depend on how much work is done before the visit,” said an official who declined to be named.
“It’s unlikely that all issues will be thrashed out when the US secretary of state meets the external affairs minister, and we are not focusing only on these issues. It’s also about a balanced set of things, taking a look at where the ties are going and fine-tuning the domains where we are working together,” the official added.
The people cited above noted that the strategic partnership and counter-terrorism cooperation have progressed well and there are more and more areas where the two sides are collaborating. Pompeo’s visit will help in sharing of perspectives to create more convergence, they said.
“The overall relationship is forward-looking and there’s no doubt that it is moving in a positive direction, but it’s also important to resolve issues that crop up,” the official cited above said. “Both sides are committed to this relationship and have a similar vision, but the nuts and bolts need to be tightened.”
Against the backdrop of these developments, India will not relent to US pressure as it provides a vast market and cheaper resources to American MNCs, officials said.
“In the digital world, data is wealth. There are, however, two crucial issues – who owns the data and how MNCs share revenues earned by using the data. The revenue generated online often goes directly overseas, which is nothing but flight of wealth from India,” said a second official, who also didn’t want to be named.
While referring to differences caused by Washington’s threats of action under the Countering America’s Adversaries Through Sanctions Act (CAATSA) in response to India’s deal to acquire the S-400 missile defence system from Russia and US efforts to wean India away from Russian military hardware, the people cited above said New Delhi will not scuttle the S-400 deal.
“It appears the US has misread the signals from New Delhi or isn’t getting the right communication from its mission on India’s position on these issues,” a third official said.
The MNCs are hassled by India’s decision of December 26, 2018, that modified foreign direct investment guidelines and barred foreign e-commerce platforms from selling products of firms in which they have equity stakes. It also restricted foreign platforms from forging exclusive deals with online sellers.
The US is the oldest democracy and India the largest, and there is immense potential for cooperation but it is possible only on the equity principle, as both sides have to protect their interests, the officials said.
According to the officials, the draft of the Personal Data Protection Bill is ready after legal vetting, and can be introduced in Parliament at any time, and this legislation will pave the way for the e-commerce policy, the draft of which too is ready, the officials said.
At a meeting chaired by commerce and industry minister Piyush Goyal on Monday, e-commerce industry representatives raised concerns about the draft e-commerce policy, which they felt was not “adequately consultative”, an official statement said.
Goyal held extensive consultations with the tech industry and e-commerce companies to understand their concerns and to include their suggestions for building a robust data protection framework, the officials added.
Agneshwar Sen, associate partner, tax and economic policy group at EY India, said: “By gracefully refusing to request the US for extension of GSP benefits, India has clearly indicated it would prefer to trade on the competitiveness of its products rather than through preferential treatment...This is an assertion of India’s self-confidence, which is manifest in its imposing retaliatory tariffs on 28 US tariff lines. The unilateral action of the US imposing tariffs on Indian steel and aluminium exports needed a response.”
“The e-commerce policy and the [draft] Personal Data Protection Act cover two very important elements of future trade and security regime in any country, particularly of the size, complexity and security concerns as of India.”
Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations (FIEO), said, “Countries like Germany, Russia and China have a data localisation policy covering different aspects of data. Data localisation will help regulatory supervision and check business jurisdiction issues exploited by large multinational entities. However, we should have strong norms covering data-sharing and privacy of data to assure overseas entities working in India.”
India to counter US protectionism with e-commerce, data security bills
India to counter US protectionism with e-commerce, data security bills
Trade relations between India and the US deteriorated after Washington on June 5 withdrew benefits for Indian exporters under the Generalised System of Preferences (GSP) programme.
First Published: Jun 19, 2019 05:41 IST
Updated: Jun 19, 2019 07:57 IST
Rajeev Jayaswal and Rezaul H Laskar, New Delhi
After retaliating against the US withdrawal of preferential treatment for its exports, New Delhi plans to counter Washington’s growing protectionism with two pieces of legislation that can have wide-ranging impact on American firms.(Bloomberg Photo)
After retaliating against the US withdrawal of preferential treatment for its exports, New Delhi plans to counter Washington’s growing protectionism with two pieces of legislation that can have wide-ranging impact on American firms, according to officials familiar with the matter.
Trade relations between India and the US deteriorated after Washington on June 5 withdrew benefits for Indian exporters under the Generalised System of Preferences(GSP) programme. India imposed retaliatory tariffs on 28 American products from June 16 -- a decision it had put off for almost a year.
While the India-US strategic partnership and cooperation on key issues such as counter-terrorism continue to be robust, the Indian side is looking to the visit by secretary of state Mike Pompeo on June 25-26 to clear the air on several trade matters that have become irritants, such as US sanctions on Iranian oil imports, the ending of GSP benefits, and tariffs.
Of the two proposed laws, the e-commerce policy is aimed at streamlining online trade, currently dominated by American companies such as Google, Facebook, Twitter, Amazon and Flipkart.
The proposed Personal Data Protection Bill calls for firms to protect personal data of Indians, such as health and financial data, religious or political affiliation, caste, sexual orientation and bio-metrics, by storing all data in India, government and industry officials said on condition of anonymity.
Multinational companies (MNCs), particularly American ones, are lobbying for a liberal e-commerce policy with virtual autonomy in possession and use of private data, which the proposed legislation aim to regulate, officials said.
The proposed laws assume significance as the two countries are expected to negotiate crucial trade-related issues when Pompeo holds meetings in New Delhi on June 26.
Besides discussions with his Indian counterpart S Jaishankar, Pompeo will meet Prime Minister Narendra Modi and national security adviser Ajit Doval, people familiar with the developments said. These meetings will also prepare the grounds for Modi’s meeting with US President Donald Trump – his first since his re-election – on the margins of the G20 summit in Osaka, Japan, on June 28-29, the people said.
The people said some work is already being done by the two sides behind the scenes to narrow differences before Pompeo’s arrival. “A lot will depend on how much work is done before the visit,” said an official who declined to be named.
“It’s unlikely that all issues will be thrashed out when the US secretary of state meets the external affairs minister, and we are not focusing only on these issues. It’s also about a balanced set of things, taking a look at where the ties are going and fine-tuning the domains where we are working together,” the official added.
The people cited above noted that the strategic partnership and counter-terrorism cooperation have progressed well and there are more and more areas where the two sides are collaborating. Pompeo’s visit will help in sharing of perspectives to create more convergence, they said.
“The overall relationship is forward-looking and there’s no doubt that it is moving in a positive direction, but it’s also important to resolve issues that crop up,” the official cited above said. “Both sides are committed to this relationship and have a similar vision, but the nuts and bolts need to be tightened.”
Against the backdrop of these developments, India will not relent to US pressure as it provides a vast market and cheaper resources to American MNCs, officials said.
“In the digital world, data is wealth. There are, however, two crucial issues – who owns the data and how MNCs share revenues earned by using the data. The revenue generated online often goes directly overseas, which is nothing but flight of wealth from India,” said a second official, who also didn’t want to be named.
While referring to differences caused by Washington’s threats of action under the Countering America’s Adversaries Through Sanctions Act (CAATSA) in response to India’s deal to acquire the S-400 missile defence system from Russia and US efforts to wean India away from Russian military hardware, the people cited above said New Delhi will not scuttle the S-400 deal.
“It appears the US has misread the signals from New Delhi or isn’t getting the right communication from its mission on India’s position on these issues,” a third official said.
The MNCs are hassled by India’s decision of December 26, 2018, that modified foreign direct investment guidelines and barred foreign e-commerce platforms from selling products of firms in which they have equity stakes. It also restricted foreign platforms from forging exclusive deals with online sellers.
The US is the oldest democracy and India the largest, and there is immense potential for cooperation but it is possible only on the equity principle, as both sides have to protect their interests, the officials said.
According to the officials, the draft of the Personal Data Protection Bill is ready after legal vetting, and can be introduced in Parliament at any time, and this legislation will pave the way for the e-commerce policy, the draft of which too is ready, the officials said.
At a meeting chaired by commerce and industry minister Piyush Goyal on Monday, e-commerce industry representatives raised concerns about the draft e-commerce policy, which they felt was not “adequately consultative”, an official statement said.
Goyal held extensive consultations with the tech industry and e-commerce companies to understand their concerns and to include their suggestions for building a robust data protection framework, the officials added.
Agneshwar Sen, associate partner, tax and economic policy group at EY India, said: “By gracefully refusing to request the US for extension of GSP benefits, India has clearly indicated it would prefer to trade on the competitiveness of its products rather than through preferential treatment...This is an assertion of India’s self-confidence, which is manifest in its imposing retaliatory tariffs on 28 US tariff lines. The unilateral action of the US imposing tariffs on Indian steel and aluminium exports needed a response.”
“The e-commerce policy and the [draft] Personal Data Protection Act cover two very important elements of future trade and security regime in any country, particularly of the size, complexity and security concerns as of India.”
Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations (FIEO), said, “Countries like Germany, Russia and China have a data localisation policy covering different aspects of data. Data localisation will help regulatory supervision and check business jurisdiction issues exploited by large multinational entities. However, we should have strong norms covering data-sharing and privacy of data to assure overseas entities working in India.”
India to counter US protectionism with e-commerce, data security bills
Indian pharma aims to corner 7% of global market by 2030: Report
MoneyControl • Jun 20, 2019 08:21 PM IST
The Indian pharmaceutical industry aspires to have a 7 percent share in the global drug market by 2030, a joint report by the Indian Pharmaceutical Alliance (IPA) and McKinsey said.
The current market share is at 3.6 percent, valued at around $38 billion. For it to achieve the 7 percent goal, i.e. $120-130 billion value by 2030, growth would have to be at 11-12 percent annually, it added.
The target though stiff is achievable as patents for branded molecules with cumulative global sales of over $251 billion are expected to expire between 2018 and 2024. Indian generic companies are expected to capture a big slice of the pie.
In addition to the patent cliff, investment by Indian companies on newer product classes such as bio-similars and specialty drugs and increased exports to under-penetrated international markets like Japan, China, Africa, Indonesia and Latin America will help reach the target.
On the domestic front, to get to 7 percent, the report: 'Indian Pharmaceutical Industry: The Way Forward - Vision 2030', said the pharmaceutical market would have to break into top 5 markets in the world from its current ranking of the 11th market by value.
Ayushman Bharat – the state-sponsored universal health coverage programme with a focus on chronic healthcare, will be key to driving this growth.
On innovation, the report expected India to aspire for three to five new molecular entities and 10–12 incremental innovation launches per year, by 2030.
But the report warns about pricing pressure and buyer consolidation in the US, increased scrutiny in quality compliance when supplying to international markets, lack of stable pricing and policy environment domestically, dependence on imports for bulk drugs and intermediates and lack of capabilities in innovation space, as some of the key challenges.
"The Indian pharmaceutical industry is entering its next phase of growth. At this critical juncture, there is a need for stronger collaboration between pharma companies, the government and regulatory agencies," said Sudarshan Jain, Secretary General of IPA
"Concerted efforts by the pharmaceutical companies and government’s intervention in the form of enabling policies and a supportive ecosystem can help the industry achieve Vision 2030," he added.
Indian pharma aims to corner 7% of global market by 2030: Report
MoneyControl • Jun 20, 2019 08:21 PM IST
The Indian pharmaceutical industry aspires to have a 7 percent share in the global drug market by 2030, a joint report by the Indian Pharmaceutical Alliance (IPA) and McKinsey said.
The current market share is at 3.6 percent, valued at around $38 billion. For it to achieve the 7 percent goal, i.e. $120-130 billion value by 2030, growth would have to be at 11-12 percent annually, it added.
The target though stiff is achievable as patents for branded molecules with cumulative global sales of over $251 billion are expected to expire between 2018 and 2024. Indian generic companies are expected to capture a big slice of the pie.
In addition to the patent cliff, investment by Indian companies on newer product classes such as bio-similars and specialty drugs and increased exports to under-penetrated international markets like Japan, China, Africa, Indonesia and Latin America will help reach the target.
On the domestic front, to get to 7 percent, the report: 'Indian Pharmaceutical Industry: The Way Forward - Vision 2030', said the pharmaceutical market would have to break into top 5 markets in the world from its current ranking of the 11th market by value.
Ayushman Bharat – the state-sponsored universal health coverage programme with a focus on chronic healthcare, will be key to driving this growth.
On innovation, the report expected India to aspire for three to five new molecular entities and 10–12 incremental innovation launches per year, by 2030.
But the report warns about pricing pressure and buyer consolidation in the US, increased scrutiny in quality compliance when supplying to international markets, lack of stable pricing and policy environment domestically, dependence on imports for bulk drugs and intermediates and lack of capabilities in innovation space, as some of the key challenges.
"The Indian pharmaceutical industry is entering its next phase of growth. At this critical juncture, there is a need for stronger collaboration between pharma companies, the government and regulatory agencies," said Sudarshan Jain, Secretary General of IPA
"Concerted efforts by the pharmaceutical companies and government’s intervention in the form of enabling policies and a supportive ecosystem can help the industry achieve Vision 2030," he added.
Indian pharma aims to corner 7% of global market by 2030: Report
Role of banks in making India a $10 trillion economy by 2030: Interview with S.Sridhar, Chairman of IMC BFSI Committee
Yahoo India Finance, 20 June 2019
In his Interim Budget Speech in February, 2019, acting Finance Minister Piyush Goyal had stated that ‘India would be a Ten Trillion Dollar Economy by 2030’. He said that the priority of the government will be to build next-generation infrastructure, both physical as well as social, for a 10 trillion dollar economy and to provide `ease of living’.
The concept is visionary, challenging and transformative. It is an aspirational statement. Given that India’s current GDP is USD 2.7 trillion, reaching USD 10 trillion by 2030, implies aCAGR ( Compound Annual Growth Rate ) of 11% + over the next 11 years. Difficult, but not impossible. Hence the sobriquet “2020-30 : India’s Decade of Reckoning “
To help you understand the role of regulation in evolution of a robust and safe banking sector, Mr S.Sridhar, currently the Chairman of the IMC BFSI Committee sheds light on imperative aspects.
Importance of financial regulation in India and how it affect growth of the nation
Sridhar: This is a universal given. In India financial regulation has played a key role in development, directly by laying out the road map for the regulated entities and indirectly by responsive regulation – responsive to legitimate concerns of stakeholders. Some examples of the former – are priority sector concept and guidelines; payment infrastructure digital banking. Some examples of the latter are regulatory for bearance extended to banks in regard to stressed assets for the last 2 decades almost provisioning requirements, interest reference rate changes.
Emerging issues and policy responses by the Indian banking system
Sridhar: The most important issues facing the regulator are resolution of stressed assets and ensuring liquidity crunch for NBFCs. HFCs do not lead to solvency crisis that can affect financial stability. In case of the former, the regulator efforts have been supported by good implementation of IBC and less external interference in respect to corporates. RBI appears to be on top of the liquidity situation although not indulging the NBFCs through pressuring the banks on transmission of policy rate cuts, encouraging banks to securitise bankable assets of the NBFCs. Other emerging issues are Cyber Security particularly in an age of exploding digital payments and other banking services upgrading the underwriting capability of banks transitioning to a technology based supervision to render more effective and timely supervision.
Regulatory stability and the role of supervision and governance
Sridhar: Regulation, governance and supervision constitute the triad on which financial ecosystem can be developed particularly in economy with strong need for growth. The three legs of the triad constitute free flowing feedback loop that can reinforce one another.
How the Indian banking sector is rebooting to surge ahead
Sridhar: i. Through adequate capital to meet growth demands – RBI’s capital adequacy are slightly more stringent than Basel. Whilst PSBs will be recapitalised by GoI (who have committed) private sector levels are raising capital thru QIPs tier II bond issuance etc.
ii. More thrust on digital banking, use of aggregators etc.
iii. Upgrading organisational skills in key areas – risk management,
treasures, credit underwriting.
iv. Thrust on CASA in particular and on liability management in general.
v. Revolution stressed asset resolution thru various roots – IBC, Shasakt, sale to ARCs, debt restructuring accompanied by conservative loan loss provisioning.
vi. Exercising greater control over costs so that cos income ratio is reduced progressively.
vii. Right sizing the organisation.
Why 2020 – 2030 is India’s decade of reckoning
Sridhar: If we have to achieve Ten Trillion Dollar economy by 2030 i.e. a growth with CAGR of 11% plus or slightly lower, it has to be achieved in this decade. Otherwise there is a danger of falling into the middle income trap. Also, globally there are several issues currently that impinge on India’s growth aspirations.
i. China as a treat – The BRI project its cultivation of neighbours, its dumping
of industrial products and semi finished goods etc.
ii. Trade war between US – China. Could be an opportunity for India as a
threat depending upon the way we handle it.
iii. Oil price upward movement. Some estimates indicate a price of USD 80
per barrel by year end.
iv. The need to revive investment which has fallen in recent years as well as
productivity to create jobs and growth.
Mr S.Sridhar is a banker for over four decades working in State Bank of India, Export Import Bank of India, National Housing Bank( NHB) and Central Bank of India( CBOI) . He is currently an Independent Director on the Boards of a number of companies. He consults in India and abroad on strategy, export finance, housing finance, and infrastructure finance.
Role of banks in making India a $10 trillion economy by 2030: Interview with S.Sridhar, Chairman of IMC BFSI Committee
Yahoo India Finance, 20 June 2019
In his Interim Budget Speech in February, 2019, acting Finance Minister Piyush Goyal had stated that ‘India would be a Ten Trillion Dollar Economy by 2030’. He said that the priority of the government will be to build next-generation infrastructure, both physical as well as social, for a 10 trillion dollar economy and to provide `ease of living’.
The concept is visionary, challenging and transformative. It is an aspirational statement. Given that India’s current GDP is USD 2.7 trillion, reaching USD 10 trillion by 2030, implies aCAGR ( Compound Annual Growth Rate ) of 11% + over the next 11 years. Difficult, but not impossible. Hence the sobriquet “2020-30 : India’s Decade of Reckoning “
To help you understand the role of regulation in evolution of a robust and safe banking sector, Mr S.Sridhar, currently the Chairman of the IMC BFSI Committee sheds light on imperative aspects.
Importance of financial regulation in India and how it affect growth of the nation
Sridhar: This is a universal given. In India financial regulation has played a key role in development, directly by laying out the road map for the regulated entities and indirectly by responsive regulation – responsive to legitimate concerns of stakeholders. Some examples of the former – are priority sector concept and guidelines; payment infrastructure digital banking. Some examples of the latter are regulatory for bearance extended to banks in regard to stressed assets for the last 2 decades almost provisioning requirements, interest reference rate changes.
Emerging issues and policy responses by the Indian banking system
Sridhar: The most important issues facing the regulator are resolution of stressed assets and ensuring liquidity crunch for NBFCs. HFCs do not lead to solvency crisis that can affect financial stability. In case of the former, the regulator efforts have been supported by good implementation of IBC and less external interference in respect to corporates. RBI appears to be on top of the liquidity situation although not indulging the NBFCs through pressuring the banks on transmission of policy rate cuts, encouraging banks to securitise bankable assets of the NBFCs. Other emerging issues are Cyber Security particularly in an age of exploding digital payments and other banking services upgrading the underwriting capability of banks transitioning to a technology based supervision to render more effective and timely supervision.
Regulatory stability and the role of supervision and governance
Sridhar: Regulation, governance and supervision constitute the triad on which financial ecosystem can be developed particularly in economy with strong need for growth. The three legs of the triad constitute free flowing feedback loop that can reinforce one another.
How the Indian banking sector is rebooting to surge ahead
Sridhar: i. Through adequate capital to meet growth demands – RBI’s capital adequacy are slightly more stringent than Basel. Whilst PSBs will be recapitalised by GoI (who have committed) private sector levels are raising capital thru QIPs tier II bond issuance etc.
ii. More thrust on digital banking, use of aggregators etc.
iii. Upgrading organisational skills in key areas – risk management,
treasures, credit underwriting.
iv. Thrust on CASA in particular and on liability management in general.
v. Revolution stressed asset resolution thru various roots – IBC, Shasakt, sale to ARCs, debt restructuring accompanied by conservative loan loss provisioning.
vi. Exercising greater control over costs so that cos income ratio is reduced progressively.
vii. Right sizing the organisation.
Why 2020 – 2030 is India’s decade of reckoning
Sridhar: If we have to achieve Ten Trillion Dollar economy by 2030 i.e. a growth with CAGR of 11% plus or slightly lower, it has to be achieved in this decade. Otherwise there is a danger of falling into the middle income trap. Also, globally there are several issues currently that impinge on India’s growth aspirations.
i. China as a treat – The BRI project its cultivation of neighbours, its dumping
of industrial products and semi finished goods etc.
ii. Trade war between US – China. Could be an opportunity for India as a
threat depending upon the way we handle it.
iii. Oil price upward movement. Some estimates indicate a price of USD 80
per barrel by year end.
iv. The need to revive investment which has fallen in recent years as well as
productivity to create jobs and growth.
Mr S.Sridhar is a banker for over four decades working in State Bank of India, Export Import Bank of India, National Housing Bank( NHB) and Central Bank of India( CBOI) . He is currently an Independent Director on the Boards of a number of companies. He consults in India and abroad on strategy, export finance, housing finance, and infrastructure finance.
Role of banks in making India a $10 trillion economy by 2030: Interview with S.Sridhar, Chairman of IMC BFSI Committee
GST council meet: Industry experts hail move to extend tenure of anti-profiteering body, approval of e-invoice system
FP Staff, Firstpost, 22 June 2019
Proposal for reduction in GST rate on electric vehicles will be sent to the Rate Fitment Committee for recommendations
Commenting on the outcomes of 35th Mtg of GST Council, Chandrajit Banerjee, Director General, CII, said, "By chairing the GST Council Meeting within a month of assuming charge, Finance Minister Nirmala Sitharaman has reassured industry that GST remains top priority for the Government. We warmly welcome her strong commitment to ensuring a smooth GST regime," he noted. He commented that the GST Council's approval of e-invoice system and integration with e-way bill system shall greatly add to ease in logistics and reduce transaction cost. "The GST Council's decision to introduce e-invoices shall increase efficiency in paying taxes and further boost the formal economy," he stated.
In place of multiple documents required presently, introducing GST registration with Aadhar number shall add to ease of doing business. The extension of due date for filing of annual return is widely appreciated as industry found it cumbersome to file the first return having multiple registrations. "Initial delay in tax refunds on export goods has been significantly addressed through special clearance drives. Doing away with multiple authorities and ensuring single point refund disbursement to tax payers shall address the issue of delays, said Banerjee. "With the related institutional systems now in place, the time is right for the GST Council to consider further improvement in GST such as coverage of all sectors and convergence of tax slabs", Banerjee added.
Waman Parkhi, Partner, Indirect Tax, KPMG in India
Proposal for reduction in GST rate on electric vehicles will be sent to the Rate Fitment Committee for recommendations. This is a welcome move, as electric vehicles are definitely the technology for the future and will reduce consumption of fossil fuels and therefore should be incentivized. However, certain other categories of vehicles like auto rickshaws, trucks also need to be incentivized considering their impact on the common man
Extending the tenure of the Anti-profiteering body by two more years was a necessity considering pending cases. However, demand by industry for clarity on methodology for anti-profiteering, has still not been addressed by the Government. Moreover after two years of GST , market forces would have already equalized prices making pricing investigations superfluous now.
Abhishek Jain, Tax Partner, EY India
The extension of two months for annual return and audit were much sought for by the industry and its approval comes for as a big relief to businesses; especially in light of the recent clarifications issued. Other in principle approvals of e-ticketing and electronic invoicing, where enforced well, should also help posing checks in tax evasion; but businesses would be keen to understand the precise mechanism of its implementation.
Sachin Menon, Partner and Head, Indirect Tax, KPMG in India
Extension of due date for filing of the first-ever GST annual returns, shall provide a much-needed relief and support to the stakeholders, considering that the returns require to undertake various reconciliations. The two-year extension to the anti-profiteering authority primarily aims to ensure that the benefits of change in rate of tax and benefit of ITC are passed on to the recipient. It would have been more apt if appropriate methodology was also prescribed for determining the profiteering amount.
Mekhla Anand, Partner, Cyril Amarchand Mangaldas
The extension of the NAA's tenure was logical given the rate reductions that have been announced over the past few months as well as the Government's intention of rationalising the tax slabs and rates. However the fundamental premise for its existence and operation does continues to be a debatable issue. It is interesting note that the decision on rate reduction for electric motor vehicles has been referred to a fitment committee. This shows a methodical approach to the issue.
Pratik Jain, Partner & Leader, Indirect Tax, PwC India
It is good to see that the decision of the GST council has been taken again with consensus which augment the future of GST in the country. Decision to use aadhar for the purpose of registration is a significant step and could lead to similar linkages with income tax as well in times to come. Decision to implement e-invoicing model means that technology will continue to play a critical role in tax administration. While this system could initially be implemented for B2B segment only, but with e-ticketing for multi-screen cinema halls a similar mechanism is also proposed for B2C segment. If this experiment turns out to be successful, one could see this mechanism getting extended to other B2C segments as well.
The decision to extend timelines for filing annual return and audit report for FY 2017-18 is a welcome move as the industry was not prepared for the current deadline of 30 June. While the extension of term of National Anti-profiteering Authority (NAA) by two years was expected, one would hope that the government would come up with detailed guidelines and seek to restrict the same only in case of consumer complaints. There is now a need for GST Council to draw a long-term agenda as to what kind of GST does India need in the coming years.
Santosh Dalvi, Partner and Deputy Head, Indirect Tax, KPMG in India
Reference to the fitment committee by the GST council on the issues concerning various facets of electrical vehicles, Solar Power and wind turbines will promote use of non- conventional energy segment. The road map for transition to the new simplified return system will provide sufficient time to the taxpayer to get accustomed to and adopt the new system of compliance.
GST council meet: Industry experts hail move to extend tenure of anti-profiteering body, approval of e-invoice system
FP Staff, Firstpost, 22 June 2019
Proposal for reduction in GST rate on electric vehicles will be sent to the Rate Fitment Committee for recommendations
Commenting on the outcomes of 35th Mtg of GST Council, Chandrajit Banerjee, Director General, CII, said, "By chairing the GST Council Meeting within a month of assuming charge, Finance Minister Nirmala Sitharaman has reassured industry that GST remains top priority for the Government. We warmly welcome her strong commitment to ensuring a smooth GST regime," he noted. He commented that the GST Council's approval of e-invoice system and integration with e-way bill system shall greatly add to ease in logistics and reduce transaction cost. "The GST Council's decision to introduce e-invoices shall increase efficiency in paying taxes and further boost the formal economy," he stated.
In place of multiple documents required presently, introducing GST registration with Aadhar number shall add to ease of doing business. The extension of due date for filing of annual return is widely appreciated as industry found it cumbersome to file the first return having multiple registrations. "Initial delay in tax refunds on export goods has been significantly addressed through special clearance drives. Doing away with multiple authorities and ensuring single point refund disbursement to tax payers shall address the issue of delays, said Banerjee. "With the related institutional systems now in place, the time is right for the GST Council to consider further improvement in GST such as coverage of all sectors and convergence of tax slabs", Banerjee added.
Waman Parkhi, Partner, Indirect Tax, KPMG in India
Proposal for reduction in GST rate on electric vehicles will be sent to the Rate Fitment Committee for recommendations. This is a welcome move, as electric vehicles are definitely the technology for the future and will reduce consumption of fossil fuels and therefore should be incentivized. However, certain other categories of vehicles like auto rickshaws, trucks also need to be incentivized considering their impact on the common man
Extending the tenure of the Anti-profiteering body by two more years was a necessity considering pending cases. However, demand by industry for clarity on methodology for anti-profiteering, has still not been addressed by the Government. Moreover after two years of GST , market forces would have already equalized prices making pricing investigations superfluous now.
Abhishek Jain, Tax Partner, EY India
The extension of two months for annual return and audit were much sought for by the industry and its approval comes for as a big relief to businesses; especially in light of the recent clarifications issued. Other in principle approvals of e-ticketing and electronic invoicing, where enforced well, should also help posing checks in tax evasion; but businesses would be keen to understand the precise mechanism of its implementation.
Sachin Menon, Partner and Head, Indirect Tax, KPMG in India
Extension of due date for filing of the first-ever GST annual returns, shall provide a much-needed relief and support to the stakeholders, considering that the returns require to undertake various reconciliations. The two-year extension to the anti-profiteering authority primarily aims to ensure that the benefits of change in rate of tax and benefit of ITC are passed on to the recipient. It would have been more apt if appropriate methodology was also prescribed for determining the profiteering amount.
Mekhla Anand, Partner, Cyril Amarchand Mangaldas
The extension of the NAA's tenure was logical given the rate reductions that have been announced over the past few months as well as the Government's intention of rationalising the tax slabs and rates. However the fundamental premise for its existence and operation does continues to be a debatable issue. It is interesting note that the decision on rate reduction for electric motor vehicles has been referred to a fitment committee. This shows a methodical approach to the issue.
Pratik Jain, Partner & Leader, Indirect Tax, PwC India
It is good to see that the decision of the GST council has been taken again with consensus which augment the future of GST in the country. Decision to use aadhar for the purpose of registration is a significant step and could lead to similar linkages with income tax as well in times to come. Decision to implement e-invoicing model means that technology will continue to play a critical role in tax administration. While this system could initially be implemented for B2B segment only, but with e-ticketing for multi-screen cinema halls a similar mechanism is also proposed for B2C segment. If this experiment turns out to be successful, one could see this mechanism getting extended to other B2C segments as well.
The decision to extend timelines for filing annual return and audit report for FY 2017-18 is a welcome move as the industry was not prepared for the current deadline of 30 June. While the extension of term of National Anti-profiteering Authority (NAA) by two years was expected, one would hope that the government would come up with detailed guidelines and seek to restrict the same only in case of consumer complaints. There is now a need for GST Council to draw a long-term agenda as to what kind of GST does India need in the coming years.
Santosh Dalvi, Partner and Deputy Head, Indirect Tax, KPMG in India
Reference to the fitment committee by the GST council on the issues concerning various facets of electrical vehicles, Solar Power and wind turbines will promote use of non- conventional energy segment. The road map for transition to the new simplified return system will provide sufficient time to the taxpayer to get accustomed to and adopt the new system of compliance.
GST council meet: Industry experts hail move to extend tenure of anti-profiteering body, approval of e-invoice system
Industry 4.0 needed: UNIDO’s René Van Berkel
UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability.
By Shariq Khan, ET Online | Updated: Jun 19, 2019, 11.34 AM IST
What India today needs is a ‘made in India, made for India’ version of Industry 4.0, and mere copy-and-paste of industry 4.0 models practised elsewhere in the world will not work for India, feels René Van Berkel, Officer in Charge/UNIDO Representative (designate), India
To best leverage on industry 4.0, Berkel urged Indian firms to get their standards and procedures on track first and follow a Standard Operating Procedure (SOP) in everything they do.
“I tend to be pragmatic here because you can only digitalise what is well organised in the first place. So, the first step Indian MSMEs should take is to get themselves organised. Have standard processes in place, and only then can benefit from trends such as digitalisation, artificial intelligence and big data etc. can flow,” he said.
UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability.
Asking small businesses to shun the idea of ‘Jugaad’ (low-cost indigenous solutions) as it has been hampering their growth potential across sectors, Berkel maintains that the Jugaad concept and digitalisation do not go hand in hand.
According to him, Indian MSMEs can no longer embrace digitalisation in a Jugaad way, and thus, for a smooth transition to 4.0, they need to enhance existing standards and procedures across their entire production cycle.
Commonly referred to as the fourth industrial revolution, Industry 4.0 refers to the idea of smart manufacturing that brings together various disjointed sub production processes to a single IT-backed network. Backed by automation and data exchange, it allows for real-time data sharing, leading to improved efficiency across operations.
Highlighting the nuances of a typical Indian business model and the challenges it poses for MSMEs’ tryst with industry 4.0, the representative of the specialised agency of the UN, which is celebrating MSME Day on June 27, 2019, said, “We need an industry 4.0 made in India. A copy and paste of what Germany or Japan have done, will not be effective in this country.”
Acknowledging that across Indian industry sectors - such as engineering and auto, the concept of industry 4.0 seems to have already arrived and could be seen fueling their growth, he added that Indian MSMEs are increasingly adopting new age practices, making them well placed to capitalise on the trending bandwagon in coming times.
With the Indian government’s current focus on initiatives such as ‘Make in India’ and ‘National Policy for Advanced Manufacturing’, Industry 4.0 could play a crucial role in boosting the manufacturing sector’s share in the country’s GDP to 25% in 2022 from the current 17%, says KPMG-AIMA.
Made in India, made for India version of Industry 4.0 needed: UNIDO’s René Van Berkel
UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability.
By Shariq Khan, ET Online | Updated: Jun 19, 2019, 11.34 AM IST
What India today needs is a ‘made in India, made for India’ version of Industry 4.0, and mere copy-and-paste of industry 4.0 models practised elsewhere in the world will not work for India, feels René Van Berkel, Officer in Charge/UNIDO Representative (designate), India
To best leverage on industry 4.0, Berkel urged Indian firms to get their standards and procedures on track first and follow a Standard Operating Procedure (SOP) in everything they do.
“I tend to be pragmatic here because you can only digitalise what is well organised in the first place. So, the first step Indian MSMEs should take is to get themselves organised. Have standard processes in place, and only then can benefit from trends such as digitalisation, artificial intelligence and big data etc. can flow,” he said.
UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability.
Asking small businesses to shun the idea of ‘Jugaad’ (low-cost indigenous solutions) as it has been hampering their growth potential across sectors, Berkel maintains that the Jugaad concept and digitalisation do not go hand in hand.
According to him, Indian MSMEs can no longer embrace digitalisation in a Jugaad way, and thus, for a smooth transition to 4.0, they need to enhance existing standards and procedures across their entire production cycle.
Commonly referred to as the fourth industrial revolution, Industry 4.0 refers to the idea of smart manufacturing that brings together various disjointed sub production processes to a single IT-backed network. Backed by automation and data exchange, it allows for real-time data sharing, leading to improved efficiency across operations.
Highlighting the nuances of a typical Indian business model and the challenges it poses for MSMEs’ tryst with industry 4.0, the representative of the specialised agency of the UN, which is celebrating MSME Day on June 27, 2019, said, “We need an industry 4.0 made in India. A copy and paste of what Germany or Japan have done, will not be effective in this country.”
Acknowledging that across Indian industry sectors - such as engineering and auto, the concept of industry 4.0 seems to have already arrived and could be seen fueling their growth, he added that Indian MSMEs are increasingly adopting new age practices, making them well placed to capitalise on the trending bandwagon in coming times.
With the Indian government’s current focus on initiatives such as ‘Make in India’ and ‘National Policy for Advanced Manufacturing’, Industry 4.0 could play a crucial role in boosting the manufacturing sector’s share in the country’s GDP to 25% in 2022 from the current 17%, says KPMG-AIMA.
Made in India, made for India version of Industry 4.0 needed: UNIDO’s René Van Berkel
How Chandra plans to tackle the 2 key challenges of Tata group
It seems that the total debt of The TATA group is about a third of your sovereign debt, assuming your debt is 100 billion USD, give or take a few billions.
F. Y. I The Tata Group has a T/o in excess of 100 billion USD which is approximately a third of your GDP.
@safriz ; @zarvan ; @Arsalan123
It seems that the total debt of The TATA group is about a third of your sovereign debt, assuming your debt is 100 billion USD, give or take a few billions.
F. Y. I The Tata Group has a T/o in excess of 100 billion USD which is approximately a third of your GDP.
@safriz ; @zarvan ; @Arsalan123