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Category: News

Government and Industry Collaborate to Boost India’s Toy Sector

Government and Industry Collaborate to Boost India’s Toy Sector

Government and industry leaders will convene on July 8 to discuss strategies for enhancing the growth of India’s toy sector, focusing on boosting manufacturing capabilities and increasing exports. The meeting, organized by Invest India in collaboration with the Toy Association of India, aims to address key issues such as regulatory developments, India’s positioning as a global toy hub, and integrating local manufacturers into the global supply chain.
Naresh Kumar Gautam, Senior Vice-President of the Toy Association of India, highlighted that the government has already implemented several initiatives to stimulate sectoral growth. An international fair is concurrently being held from July 6-9 at Pragati Maidan, showcasing products from over 400 domestic toy manufacturers to more than 150 foreign buyers representing 35 nations. The Prime Minister’s endorsement of the sector in his ‘Mann ki Baat’ address has further galvanized efforts to bolster this labor-intensive industry.
Gautam emphasized the need for fiscal support measures for stallholders and announced the upcoming ‘Toy Industry CEOs Meet’ on July 8, which will be attended by senior officials from DPIIT, Invest India, and industry representatives.
Highlighting significant developments, Gautam noted that toy exports have surged by 240% since 2014, while imports have decreased by 52% during the same period. He underscored substantial opportunities for women, with an estimated 70% of the workforce in the sector being women. Construction has also commenced on a major toy cluster in Noida, which is poised to become India’s largest, with 150 individuals already allocated land for setting up toy manufacturing units.

July 9, 2024
CreditEnable Partners with WEP to Empower Women Entrepreneurs

CreditEnable Partners with WEP to Empower Women Entrepreneurs

CreditEnable has partnered with the Women Entrepreneurship Platform (WEP) incubated by Niti Aayog to launch its flagship digital financial wellness program, Shine, aimed at women entrepreneurs across India.
Introducing Shine: A Path to Financial Wellness
Shine, developed by CreditEnable and powered by Experian, offers SME owners a comprehensive analysis of their financial health alongside digital coaching to help them manage their finances better. This initiative aims to enhance their creditworthiness and secure financing on favorable terms from formal financial institutions.
Key Features of Shine:
– 360° Financial Analysis: Shine provides entrepreneurs with an in-depth overview of their financial health, including credit scores, banking, and GST data, to reveal loan eligibility and improve approval chances.
– Actionable Tips: The program offers clear, actionable steps to improve financial profiles and address lender concerns.
– Better Loan Prospects: By following the expert advice provided, entrepreneurs can improve their access to finance at affordable rates.
Shine for Women Entrepreneurs:
The Shine program offers exclusive benefits for women entrepreneurs, including:
– Discounted Access: 1,000 women entrepreneurs will receive discounted access to the digital financial wellness program.
– Regular Curated Insights: The program delivers frequent insights to help maintain and improve financial health.
– Actionable Recommendations: Detailed analysis of financial data to provide practical steps for improvement.
– Live Webinars: Free webinars on improving credit and financial profiles for 500 women entrepreneurs.
– 1-1 Financial Coaching: Personalized coaching and discounted remediation program for 500 women entrepreneurs.
– Loan Application Assistance: Support for 1,000 women entrepreneurs in navigating the loan application process.
Empowering Women Entrepreneurs:
Currently, only 10% of SME loan applications are successful, with women entrepreneurs facing even greater challenges in accessing formal finance. Shine addresses these unique challenges by offering tailored financial advice and actionable insights to help women entrepreneurs achieve financial independence. CreditEnable’s collaboration with WEP incubated by Niti Aayog underscores their commitment to fostering growth and financial inclusion for women-led businesses.
“We are delighted to partner with WEP incubated by Niti Aayog to distribute Shine to women entrepreneurs across India,” says Nadia Sood, CEO & Founder of CreditEnable. “By providing them with the tools and resources they need to understand and improve their credit health, and directly facilitating access to finance for them, we are opening doors to new opportunities for their businesses to thrive.”
“WEP incubated by Niti Aayog is proud to partner with CreditEnable on this innovative program,” says Anna Roy, Principal Economic Advisor at NITI Aayog. “Shine will equip women entrepreneurs with the financial knowledge and creditworthiness they need to become stronger, more competitive business leaders.”

July 8, 2024
India Attracts Less Than 3% of Global Startup Funding, Signalling Major Growth Opportunities: Rajan Anandan

India Attracts Less Than 3% of Global Startup Funding, Signalling Major Growth Opportunities: Rajan Anandan

Despite being the world’s third-largest startup ecosystem, India captures less than 3% of global startup funding, highlighting immense growth potential, according to Rajan Anandan, Managing Director at Peak XV and Co-Chair of the Venture Capital (VC) Council of the Indian Venture Capital Association (IVCA).
In an interview with CNBC-TV18, Anandan, along with Prashanth Prakash and Manish Kheterpal, discussed the current state and future directions of India’s startup and venture capital industry. They emphasized the need for increased domestic investment, support for new fund managers, and a focus on deep tech and innovative sectors.
Anandan revealed that of the $300 billion invested in startups globally in 2023, only $7 billion went to India. This disparity, he believes, represents a significant growth opportunity for the Indian startup ecosystem.
He also outlined the council’s four key focus areas for the next two years:
1. Ensuring more successful IPOs for Indian startups, with an increasing number of venture-funded companies going public each year.
2. Increasing domestic capital investment in Indian startups. Currently, over 85% of investment capital comes from foreign sources, with only 15% being domestic. The goal is to boost domestic investment significantly.
3. Supporting new fund managers and microVCs through programs and initiatives to help them succeed.
4. Focusing on deep tech, aiming to dramatically increase the capital available for deep tech startups at all stages.
Manish Kheterpal, Vice-Chair of the VC Council and partner at WaterBridge Ventures, noted that India’s venture capital sector holds $10–12 billion in dry powder, with private equity capital pushing this figure beyond $25 billion. However, he highlighted a reset in investor expectations and risk-return pricing. While early-stage investments (seed to Series A) have only slightly declined, there is a notable reduction in momentum capital for later-stage investments (Series B and beyond). This shift encourages a focus on sustainable, profitable growth rather than speculative investments.
Prashanth Prakash, Founding Partner at Accel India and Co-Chair of the VC Council, identified several key trends shaping the future of venture capital in India. He pointed to the surge in AI and generative AI startups, with significant funding flowing into these areas over the past two years. Additionally, new-age manufacturing companies leveraging advanced technologies, sustainable materials, and cybersecurity solutions are gaining traction. Prakash also underscored the importance of defence and space tech, both for self-reliance and as lucrative investment opportunities. These sectors are receiving substantial domestic investment and present significant export potential.
India’s startup and venture capital industry saw exits worth $6.5 billion last year, with a strong pipeline for future IPOs in the second half of this year, signalling a period of robust growth and transformation ahead.

July 5, 2024
SEBI In Action: Market Watchdog Caps Opening Price of IPO for NSE Emerging Segment

SEBI In Action: Market Watchdog Caps Opening Price of IPO for NSE Emerging Segment

To ensure uniformity in the opening price discovery and equilibrium price for SME platform IPOs across exchanges, the Securities and Exchange Board of India (SEBI) has decided to impose a cap of up to 90 percent over the issue price for SME IPOs.
The National Stock Exchange (NSE) announced in a circular on Thursday, July 4, that the opening price of shares listed under the small and midsize enterprise (SME) category will be capped. According to the circular, effective immediately, shares listed under the SME segment may only be priced “up to 90 percent over the issue price.”

Price Control Cap on SME Segment

This 90 percent price control cap will exclusively apply to the SME segment and not to mainboard IPOs, as clarified by the NSE. The circular took effect on July 4, 2024.
The NSE has set an upper limit on the opening price of shares on its NSE Emerge platform, used for SME listings, to address concerns.
The announcement coincides with the listing of two SME IPOs at significant premiums this week. On July 1, Shivalic Power Control’s shares were listed at Rs 311 apiece, a 211 percent premium. On July 2, Divine Power Energy’s shares debuted at Rs 155, a premium of more than 287 percent.

SEBI’s Previous Observations

SEBI has observed patterns of price manipulation. SEBI Chairperson Madhabi Puri Buch stated, “The market has advised us on how to identify and address such cases.”
SEBI is collaborating with advisors to comprehend and analyze the data. “Manipulation is simple both during the IPO and in subsequent years. Additional disclosure regarding risk factors is required,” Buch noted.

July 5, 2024
Govt to Extend Easy Visa Rules to All PLI Sector Companies: DPIIT Secretary

Govt to Extend Easy Visa Rules to All PLI Sector Companies: DPIIT Secretary

The Production-Linked Incentive (PLI) scheme covers 14 sectors, including mobile phones, drones, white goods, telecommunications, textiles, automobiles, specialty steel, and pharmaceutical drugs. The government is working towards streamlining the application process for Indian business visas for companies that have set up manufacturing units in these sectors but are not direct beneficiaries of the PLI scheme.
“We have already streamlined the process for PLI beneficiaries. We’re now trying to extend this streamlined process to non-PLI beneficiaries operating in those same strategic sectors. We are currently drawing up a similar streamlined process for these non-PLI beneficiaries,” said Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), which operates under the Ministry of Commerce and Industry, on Thursday.
While a final decision has yet to be made, the government is moving in this direction. “Visa-related matters fall under the purview of the Ministry of External Affairs and the Ministry of Home Affairs,” Singh added.
Earlier this week, Commerce and Industry Minister Piyush Goyal told Business Standard that the government is expediting visa-related issues to bring technicians to India from China and other countries as needed to ensure the smooth implementation of the PLI scheme.
The industry has sought government intervention to resolve visa-processing delays affecting Chinese vendors involved in manufacturing projects. Companies have faced productivity issues due to visa hurdles in areas ranging from component manufacturing to the installation or repair of machinery, especially under the PLI scheme.
Several ministries and government departments have been addressing outstanding visa-related issues for experts and technicians from China with the Ministry of External Affairs. DPIIT has also been coordinating these matters with the external affairs ministry.

July 5, 2024
Apple’s AI in Limbo: How the EU’s Digital Markets Act Throws a Wrench in Innovation
Apple’s AI Rollout Stalled in Europe: The EU’s Digital Markets Act Throws a Wrench in the Works
Apple’s grand plans for rolling out its latest artificial intelligence (AI) features in Europe have been thrown into disarray by the European Union’s (EU) Digital Markets Act (DMA). This act, designed to promote a more competitive digital marketplace, has unfortunately collided with Apple’s way of doing things, particularly regarding user privacy and app distribution, creating a frustrating impasse.
Hold Up on the AI Train
The centerpiece of Apple’s AI ambitions, a project mysteriously named “Apple Intelligence,” has been placed on hold for all its European users. While the exact features of this offering remain under wraps, it likely encompasses a range of AI-powered services intended to seamlessly integrate within the Apple ecosystem.
Adding to the woes, features like effortless iPhone mirroring and enhanced screen sharing capabilities via SharePlay are also stuck in limbo across the EU.
Interoperability Woes: Security Concerns vs. Openness
The core of the problem boils down to the DMA’s push for interoperability. These provisions aim to dismantle the walled gardens created by tech giants like Apple, potentially forcing them to:
Allow users to download applications from third-party app stores outside the tightly controlled App Store.
Permit alternative payment methods within apps, effectively bypassing Apple’s App Store commission fees.
Apple, however, is deeply concerned that such interoperability mandates could come at the cost of user privacy and security. They argue that loosening control over app distribution might expose users to security vulnerabilities by allowing potentially unvetted apps onto iPhones.
Finding Common Ground: A Delicate Dance
Apple maintains its unwavering commitment to user safety and is actively seeking collaboration with the European Commission to find a solution that satisfies both parties. Ideally, they hope to introduce their new features while simultaneously upholding the high standards of user privacy and security they strive for.
The Potential Impact: A Double-Edged Sword
This delay in rolling out AI features for the European market has the potential to cause a two-pronged problem:
European users might miss out on the convenience and innovative experiences promised by these new AI functionalities.
Apple might be forced to significantly alter its AI implementation strategy to comply with the DMA regulations.
The Future Unfolds: A Precedent in the Making
The outcome of Apple’s discussions with the EU Commission will not only determine the fate of AI features and app distribution for Apple devices in Europe, but it could also set a crucial precedent. How other tech giants navigate the regulations laid out by the DMA will be closely watched, potentially shaping the entire digital landscape within the European region.
Stay Tuned for the Next Chapter
This story is far from over. We’ll be keeping a close eye on developments, with The Indian Express and other tech news outlets serving as our guides, to see how Apple and the EU Commission eventually resolve this situation. Their resolution could very well define the future path of AI integration within smartphones and set new standards for user privacy.
July 3, 2024
Nvidia Stock Soars: AI Powerhouse Faces New Competition and Evolving Regulations
Nvidia Stock Soars: AI Powerhouse Faces New Competition and Evolving Regulations

Nvidia’s stock price has tripled in just a year, leaving investors pondering whether to hold or sell. Nvidia’s story is one of innovation and adaptation, evolving from a pioneer in computer graphics to a leader in artificial intelligence.
Founded in 1993 by a trio of electrical engineers with a vision to bring 3D graphics to the mainstream. They entered the market with the RIVA series of graphics processors, targeting the burgeoning PC gaming market.
Nvidia, the graphics processing unit (GPU) giant and a leader in artificial intelligence (AI) technology, has been making headlines for all the right reasons lately. Their stock price has skyrocketed, tripling in value within the past year. This surge reflects investor confidence in the company’s future, but it also raises questions about whether it’s time to buy, sell, or hold.
However, Nvidia’s journey isn’t without its challenges. The tech landscape is constantly shifting, and new developments are emerging that could impact their market position. One key development is the rumored collaboration between Apple and Meta on AI technology. If this partnership comes to fruition, it could create a formidable competitor for Nvidia in the AI hardware space.
Beyond competition, Nvidia, along with other AI leaders, needs to navigate the evolving regulatory landscape. The European Union’s Chat Control Law, for example, highlights growing concerns around privacy and the potential misuse of AI. Nvidia will need to demonstrate its commitment to responsible AI development and ensure its technology adheres to these evolving regulations.
Nvidia’s Strengths:
Market Leader: Nvidia is currently the dominant player in the AI hardware market, boasting powerful GPUs specifically designed for AI applications.
Innovation: They have a proven track record of innovation, constantly pushing the boundaries of graphics and AI technology.
Diversification: Their presence extends beyond gaming and AI, with applications in professional computing, autonomous vehicles, and the potential metaverse.
Challenges and Opportunities:
Competition: Potential collaboration between Apple and Meta could pose a serious threat to their AI market dominance.
Regulations: Navigating evolving AI regulations will be crucial for continued growth and responsible development.
Market Fluctuations: The current stock price surge might be an opportune moment for investors to cash out, but it could also indicate continued growth potential.
Looking Ahead:
Nvidia’s future hinges on its ability to adapt and maintain its edge in a dynamic market. Continued innovation, strategic partnerships, and a commitment to responsible AI development will be key factors in their success. Investors, meanwhile, will be closely watching how Nvidia navigates these challenges and translates its technological prowess into long-term financial gains.
July 1, 2024
FM Urged to Support MSME Workforce Up-Skilling and Introduce Employment-Linked Incentives

FM Urged to Support MSME Workforce Up-Skilling and Introduce Employment-Linked Incentives

The interim Budget for FY25 has allocated Rs 22,138 crore to the MSME sector, maintaining the same level as the previous financial year.
During a pre-budget meeting on Tuesday, industry executives urged Finance Minister Nirmala Sitharaman to increase funding in the Union Budget to “facilitate skilling and upskilling” for the MSME workforce. They also called for the introduction of an employment-linked incentive scheme for labor-intensive sectors to boost job creation.
The Confederation of Indian Industry (CII) recommended that the finance ministry allocate funds to establish Hi-Tech training labs in micro, small, and medium enterprise (MSME) clusters under a public-private partnership model. Additionally, they proposed providing “skill vouchers” for re-skilling and up-skilling employees of MSMEs in new and emerging technologies.
A significant portion of the Rs 22,138 crore allocation for FY25 will be dedicated to creating more clusters and new technology centers.
In her Budget speech, Sitharaman emphasized, “It is an important policy priority for our Government to ensure timely and adequate finances, relevant technologies, and appropriate training for the MSMEs to grow and also compete globally.”
Industry leaders also urged the government to launch an employment-linked incentive scheme for “labor-intensive and high-growth potential” sectors—such as toys, textiles, furniture, and tourism—to generate jobs. They suggested offering higher incentives for the incremental hiring of women.
For instance, Wipro reported a sharp decline in its female workforce, decreasing to 68,231 employees in FY2024 from 90,721 the previous year—a drop of 22,490 employees, according to the company’s annual report.
Flexi staffing companies requested the FM to reduce the GST rate on employment services from 18% to 5%.
Flexi employees are hired for specific periods and receive benefits such as social security, standard wages, legal compliances, and registration under the EPFO. They differ from gig workers, who may not receive such benefits. Flexi employees are considered formal contractual employees under a legally bound tripartite agreement between the principal employer, the staffing company, and the worker. The principal employer contracts with a staffing company to hire flexi workers suitable for particular roles as required.
The Indian Staffing Federation (ISF), representing the staffing industry, accounts for about 30-35% of the total flexi workforce in India, estimated to be around 1.6 million.
A reduced GST rate would allow principal employers to redirect the additional cash flow towards reimbursing salaries and paying statutory contributions to employees, according to the ISF.

June 26, 2024
India Inc. Bets Big on AI to Transform its Manufacturing Sector

India Inc. Bets Big on AI to Transform its Manufacturing Sector

Artificial Intelligence is revolutionizing operational landscapes through automation, enhancing efficiency in smart factories and customer solutions. India stands on the brink of its second major business transformation in three decades, poised to become a hub for AI-powered manufacturing, similar to its dominance in the IT services boom of the 1990s.
A Strong Foundation for AI
India already possesses many prerequisites necessary to become an AI powerhouse. With extensive computing and analytical infrastructure, India is well-equipped for a seamless transition from big data analytics to machine learning and AI systems. The country also has a unique opportunity to leverage its IT talent, cost advantages, and growing manufacturing base to become a global leader in AI-powered manufacturing. By addressing key challenges and implementing strategic initiatives, India can attract investments, foster innovation, and unlock immense economic potential.
Economic Impact and Growth Projections
AI is expected to contribute up to $500 billion to India’s GDP by 2025 and $967 billion by 2035. In the manufacturing sector, market studies indicate that the market size of manufacturing AI in India is projected to exceed INR 12.5 billion by 2028, with a remarkable CAGR of 58.96% from 2023 onwards. The Global AI Index ranks India fifth among 62 countries, highlighting its transformative potential in AI. Despite challenges, India’s young and talented workforce, with half of its population under 30, provides a solid foundation, particularly with an abundance of high-quality AI-trained engineers.
Adoption and Investment
According to the Generative AI Radar 2024 report by Infosys, India, like many of its Asia-Pacific neighbors, is leading in AI adoption and development. India is set for a significant increase in AI investments, with a forecasted 165% jump in spending on general AI by Indian companies, reaching USD 386 billion. The NASSCOM AI Adoption Index positions India as an “Enthusiast” with an AI maturity index of 2.45 out of 4. NASSCOM’s report highlights that 78% of India’s manufacturing companies have a well-defined AI strategy, and 67% are already testing AI POCs or limited use cases.
Opportunities and Benefits
AI is increasingly used across various industries in India, from banking and healthcare to farming and manufacturing, to improve efficiency. In the manufacturing sector, AI drives automation and predictive maintenance, with smart factories employing AI-enabled robots and sensors to optimize production processes, reduce downtime, and enhance product quality. AI also plays a crucial role in customer service with automated conversational AI voice bots, supply chain management, and operational efficiency. Customer segmentation benefits from AI as well, allowing companies to understand and target the right audience effectively.
Key Enablers and Challenges
While the potential benefits of AI in India are immense, challenges accompany its widespread adoption. Ethical and societal impacts of AI technologies, such as data privacy concerns, necessitate responsible AI development and deployment. The rapid pace of technological advancement raises questions about regulatory frameworks and workforce readiness. Policymakers are collaborating with industry stakeholders across India to establish robust governance mechanisms that balance innovation with ethical considerations. Additionally, India is investing in education and upskilling initiatives to prepare its workforce for AI jobs.
The Road Ahead
Technology has always been a catalyst for positive change. In India, AI is driving economic prosperity, social well-being, and sustainable development in the manufacturing sector with far-reaching effects. For a country that has already experienced a technology boom in recent decades, it is crucial to harness the power of AI responsibly and ethically. A favorable geopolitical climate is encouraging global manufacturers to set up operations in India. Embracing AI can be a game-changer, propelling India’s manufacturing sector to global leadership.

June 26, 2024
GST Relief: Exemptions for Hostel Rents and Railway Services

GST Relief: Exemptions for Hostel Rents and Railway Services

The GST Council, in its 53rd meeting, announced several relief measures aimed at benefiting the middle class. Among these is an exemption from GST for rents up to ₹20,000 per month for accommodations outside college campuses. This applies to students and working professionals for stays up to 90 days, a reduction from the previous 12% GST rate on such accommodations.
Key Exemptions and Reductions
Union Finance Minister Nirmala Sitharaman highlighted that the council also exempted services like platform tickets, waiting room access, and cloakroom facilities at railway stations from GST. Furthermore, the council reduced GST on cartons to support apple farmers in Himachal Pradesh and Jammu and Kashmir, and set a 12% GST rate for all milk cans and solar cookers.
Addressing MSME and Industry Needs
The council recommended waiving interest and penalties for demand notices issued under Section 73 of the GST Act for cases not involving fraud, suppression, or misstatements. This waiver applies to notices from fiscal years 2017-18, 2018-19, and 2019-20.
Pending Issues and Future Considerations
Contentious issues like GST on fuel products, online gaming, and insurance premium rate rationalization were not discussed in this meeting. Finance Minister Sitharaman mentioned that the inclusion of petrol and diesel under GST depends on state decisions, despite the central government’s intention to include them.
Regarding the demand for GST exemption on fertilizers, Revenue Secretary Sanjay Malhotra stated that this issue has been referred to the Group of Ministers (GoM) due to its significance. Additionally, the council deferred the discussion on co-insurance premiums to the next meeting.
Industry Response and Additional Measures
Saurabh Agarwal, Tax Partner at EY India, commended the government’s measures, such as waiving interest and penalties for disputes up to FY 2019-20, extending ITC claim timelines for FY 2020-21, and reducing pre-deposit requirements for appeals. He suggested that streamlining the GST rate structure and exploring an ‘invoice locking’ facility within the GSTN system would further reduce litigation.
Support for Railways and Appeal Process
The council recommended exempting various services provided by Indian Railways to the public, such as platform tickets and waiting room facilities. This exemption will be regularized from October 20, 2023, to the date of the exemption notification.
To ease cash flow and working capital constraints for taxpayers, the council also proposed reducing pre-deposit amounts for filing appeals. The maximum pre-deposit for appeals with the appellate authority has been reduced to ₹20 crores for both CGST and SGST, down from ₹25 crores. For appeals with the Appellate Tribunal, the pre-deposit has been reduced to 10% with a maximum of ₹20 crores for both CGST and SGST, down from 20% with a maximum of ₹50 crores.

June 24, 2024