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Secretary, Department of Pharmaceuticals launches the MEDITECH STACKATHON 2024 in collaboration with CII at New Delhi

Department of Pharmaceuticals launches the MEDITECH STACKATHON 2024 in collaboration with CII at New Delhi

India’s MEDTECH industry holds immense potential with projections estimating a growth rate of 28% annually: Dr Arunish Chawla
Industry captains and key stakeholders to brainstorm on the Value Chain Mapping of the select medical devices to facilitate meaningful discussions on the way forward
Secretary, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers Dr Arunish Chawla, launched the MEDITECH STACKATHON 2024 in collaboration with CII in New Delhi today. The MEDITECH STACKATHON is a groundbreaking initiative designed to catalyze transformative change within India’s burgeoning MedTech sector by undertaking a comprehensive value chain analysis of select medical devices. Through close consultation with industry leaders, policymakers, and experts, the STACKATHON aims to address critical challenges, foster domestic manufacturing, and reduce import dependence, thereby positioning India as a global leader in medical technology. Joint Secretary, Department of Pharmaceuticals Shri RP Singh and Chairman, CII National Medical Technology Forum Shri Himanshu Baid, and other senior officials of the Department and representatives of the Industry were present on the occasion.
Addressing the gathering, Dr Arunish Chawla said that India’s MedTech industry holds immense potential, with projections estimating a growth rate of 28% annually, reaching a size of USD 50 billion by 2030. He said that currently, India is the 4th largest market for medical devices in Asia and among the top 20 globally. Net imports for 2022-23 stands at USD 4101 Million with an import coverage ratio of 0.45.
The Secretary said that the sector has witnessed a surge in imports, driven primarily by countries like the US, China, and Germany, however, India’s robust policy ecosystem presents opportunities for export boosts and reducing import dependence through domestic manufacturing.
Pharma Secretary Shri Arunish Chawla emphasized the importance of policymakers, and industry coming together to draw up a sturdy policy stack for the growth of the medical devices industry in the country.
He highlighted the critical need to focus on quality to ensure that India becomes globally competitive.
Exports have overtaken imports in consumables and disposables during last year, he said, and urged the industry to continue with the momentum in other pillars of the media-tech sector.
Collaboration among stakeholders is essential to address these challenges and enhance both the ease and cost of doing business in the sector. By fostering partnerships, boosting investment in research and innovation, and streamlining value chain processes, we can achieve our shared goal of accessible and affordable healthcare for all, he added.
Through the STACKATHON, participants will delve into the complexities of different product segments within the medical devices industry to gain insights into their unique challenges and opportunities, analyze and map value chains across various segments of the medical devices industry to identify key stakeholders, processes, and dependencies, identify critical issues hindering the development of the medical devices industry, such as import dependence, regulatory hurdles, and technological gaps, Dr Chawla said in his address.
The STACKATHON would deliberate in eight focused groups namely Cancer Therapy, Imaging, Critical Care, Assistive Medical Devices, Body Implants, Surgical instruments and Hospital Equipment, Consumables & Disposables, and IVD Instruments and reagents, each tasked with specific objectives including segment-wise identification of important medical devices, assessment of import-export dynamics, examination of duty structures, and their implications across the entire value chain.
Preceding this workshop, group leads and members have undertaken extensive virtual discussions and preparatory work. The challenges persist in the sector, including cost competitiveness, quality assurance, and regulatory hurdles.
Shri Himanshu Baid, Chairman, CII highlighted a shared vision of collaborative excellence, wherein stakeholders unite to drive tangible outcomes and propel the MedTech industry towards unparalleled growth. He said that with India’s MedTech exports surpassing 4 billion dollars, the industry stands poised on a trajectory of remarkable expansion. However, he highlighted the need for enhanced data collation mechanisms to address gaps in product consumption and production within India. He stated that India’s MedTech landscape is brimming with promise, poised to capture 10% of the global market share over the next decade. Endowed with a robust ecosystem comprising world-class hospitals, skilled manpower, and cutting-edge resources, India is primed to emerge as a frontrunner in the global MedTech arena. He further underscored the importance of fostering industry-friendly policies, streamlining regulatory frameworks, and extending support to Micro, Small, and Medium Enterprises (MSMEs) through targeted incentives and technology funds.
Against this backdrop of immense potential, MEDITECH STACKATHON 2024 seeks to harness the collective expertise of stakeholders to propel the industry towards unprecedented heights of innovation and self-reliance.

Originally posted on: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2019852

May 8, 2024
SEBI Takes Action Against SME for Alleged Financial Manipulation

Sebi Takes Action Against SME for Alleged Financial Manipulation

On Monday, the Securities and Exchange Board of India (Sebi) issued sanctions against 12 entities, including Add-Shop E-Retail, a listed company, and several members of its promoter-management team, for purportedly manipulating financial statements.
According to the Sebi order, the company engaged in fictitious transactions, including fake sales and purchase entries in its accounts. Over the past three financial years, more than 46% of reported sales were found to be fictitious. Furthermore, significant related-party transactions were conducted without audit committee approval.
Add-Shop E-Retail was listed on BSE’s small and medium enterprise (SME) platform in September 2018 and later moved to the main board platform in October 2020. The promoter stake in the company decreased to 27.2% by December 2023, down from 62.99% in April 2020.
This regulatory action coincides with increased scrutiny on SMEs for potential manipulation and heightened monitoring due to concerns about fraudulent activities in the sector.

May 7, 2024
India’s Services Sector Records Strongest Growth in Nearly 14 Years: PMI Data

India’s Services Sector Records Strongest Growth in Nearly 14 Years: PMI Data

India’s Services Sector Records Strongest Growth in Nearly 14 Years: PMI Data
India’s services sector demonstrated robust growth in April, driven by strong domestic and international demand, which bolstered business confidence to a three-month peak, according to a survey released on Monday.
The HSBC Services Purchasing Managers’ Index (PMI) for India eased slightly to 60.8 in April from 61.2 in March, with the preliminary estimate pegged at 61.7. Despite this moderation, the index remained one of the fastest growth rates observed in nearly 14 years, as stated in a press release by the firm.
Since August 2021, the services sector has consistently maintained a level above the threshold of 50, indicating expansion rather than contraction.
Similarly, data tracking India’s manufacturing sector also showed a moderation in April, with a PMI reading of 58.8. This softening in both manufacturing and services contributed to an overall Composite PMI reading of 61.5 in April, down from March’s eight-month high of 61.8.
However, this reading still represented one of the highest levels observed in close to 14 years.
India’s services sector remains dominant, with positive market conditions and strong demand driving the new business sub-index to its highest level in three months and the third-highest level in nearly 14 years.
“India’s service activity expanded at a slightly slower pace in April, supported by a continued increase in new orders, particularly driven by robust domestic demand,” noted Pranjul Bhandari, Chief India Economist at HSBC.
Business activity in finance and insurance witnessed significant growth, as indicated by the survey.
Moreover, services companies experienced the second-fastest increase in new export business in nearly a ten-year period, with gains seen across Asia, Africa, Europe, the Americas, and the Middle East.
“Although new export orders remained strong, they moderated slightly compared to March,” Bhandari added.
Rising food prices and wage pressures resulted in increased cost burdens for survey respondents, prompting firms to pass on some of these costs to customers. The Consumer Services segment witnessed the sharpest increase in input costs, according to the survey.
“In response to growing new orders, firms expanded their staffing levels, although the pace of hiring growth decelerated. Input costs continued to rise sharply, albeit at a slower pace than in March, leading to squeezed margins for service firms, as only a portion of the cost increase was transferred to clients through output charges,” Bhandari explained.

May 7, 2024
Increasing Issuance of GST Demand Notices Driving Growth in GST Collections

Increasing Issuance of GST Demand Notices Driving Growth in GST Collections

The surge in GST collections is partly attributed to the rising number of GST demand notices being issued to companies, prompting many to express their intention to appeal against these orders.
Abhishek Jain, Partner and National Head of Indirect Tax at KPMG India noted, “The sustained growth in GST collections, with the latest figures marking the highest collection ever, reflects the strength of the domestic economy. Notably, the growth from domestic transactions at 13.4 percent outpaces that from imports at 8.3 percent. Another contributing factor to this growth could be linked to the deadline for GST audits and the consequent issuance of notices during this period.”
Several companies have reported receiving GST demand notices from authorities, with many indicating their intent to challenge these orders.
For instance, Apollo Tyres disclosed receipt of an order from the Sales Tax Officer, Delhi, under the GST Act demanding GST payment and imposing a penalty of Rs 13.94 lakh. The dispute concerns input tax credit (ITC) utilization and other matters, according to the company. Apollo Tyres stated, “The company intends to appeal before the Appellate Authority in due course. The impact of this matter on the company’s financials, operations, or other activities is not material.”
Similarly, Crompton Greaves Consumer Electricals revealed receipt of an order from state tax authorities in Mumbai for the period from April 2018 to March 2019, imposing a demand of Rs 22.49 crore.
“Considering the merits of the case, prevailing laws, and advice from consultants, the company plans to appeal against this order before the Commissioner (Appeals) and anticipates favorable outcomes from the appellate authorities,” the company stated.

May 3, 2024
Banks Extended Rs 24.6 Lakh Crore Credit to MSMEs in March: RBI Report

Banks Extended Rs 24.6 Lakh Crore Credit to MSMEs in March: RBI Report

According to the latest data from the Reserve Bank of India (RBI) on sectoral deployment, banks provided a gross credit of Rs 24.67 lakh crore to micro, small, and medium enterprises (MSMEs) under priority sector lending in March this year. This credit deployment witnessed a notable growth of 19.2 percent from Rs 20.69 lakh crore deployed in March 2023.
The total bank credit to MSMEs under priority sector lending in March represented 15 percent of India’s non-food credit, amounting to Rs 164.11 lakh crore during the month.
Breaking it down segment-wise, credit deployment to micro and small enterprises (MSEs) surged by 20.1 percent to Rs 19.76 lakh crore in March 2024 from Rs 16.45 lakh crore in the corresponding period of the previous year. Similarly, credit to medium-sized businesses grew by 15.8 percent to Rs 4.90 lakh crore from Rs 4.23 lakh crore during the same period.
Despite the upward trajectory in bank credit to MSMEs, non-banking financial companies (NBFCs) remain at the forefront of credit support to MSMEs. According to a banking sector performance report in December last year, NBFC loans to MSMEs exceeded three times the loans extended by banks.
Comparing the year-on-year growth in MSME credit by banks and NBFCs, as of March 2022 and March 2023, NBFCs demonstrated a robust growth rate of 21.2 percent and 42.4 percent, respectively, surpassing the growth rates of banks at 12.7 percent and 12.4 percent during the same periods.
As of March 2023, services MSMEs held a dominant 66.6 percent share in NBFC credit to MSMEs compared to 33.4 percent for MSMEs in industries.
However, one of the persistent challenges for MSMEs remains the lack of access to credit. A report by Lighthouse Canton, a global wealth and asset management company, highlighted that the development of digital public infrastructure (DPI) for digital products and services in a country has the potential to address nearly half of the credit gap faced by MSMEs in low and middle-income nations. Furthermore, the adoption of DPI could facilitate credit access for an additional 16-19 million MSMEs in these countries.

May 3, 2024
India Attracts Foreign Investors for Boosting Critical Minerals Sector

India Attracts Foreign Investors for Boosting Critical Minerals Sector

India is actively courting foreign investors to bolster its critical minerals sector, aiming to diversify mineral extraction beyond dominant countries like China and mitigate supply chain vulnerabilities.
During the critical minerals summit’s concluding day, Invest India showcased substantial business prospects in critical mineral processing to foreign investors, detailing fiscal and non-fiscal incentives designed to spur growth in this emerging sector.
Mining states like Odisha and Andhra Pradesh also presented industry incentives, highlighting India’s growth trajectory and state-level efforts to foster supportive infrastructure. The summit emphasized a cluster-based approach to promote synergies across mineral extraction, refining, and end-use, particularly in low-carbon technologies.
Under the Narendra Modi government’s accelerated exploration efforts, over 100 critical mineral blocks are now in the pipeline for auction to mining companies.
Critical minerals such as lithium, chromium, nickel, graphite, cobalt, titanium, and rare earth elements are indispensable raw materials for electronics, electric vehicles, renewable energy, defense, and high-tech telecommunications. Given the dominance of a few countries in mineral extraction, notably China, diversifying the supply chain is critical to mitigate geopolitical uncertainties.
Discussions at the summit highlighted the importance of regulatory certainty, financing frameworks, and Environmental, Social, and Governance (ESG) standards to attract investors. Invest India and the Industrial Promotion and Investment Corporation of Odisha (IPICOL) were lauded for their facilitation services in establishing processing and beneficiation capabilities in India.
The summit brought together a diverse range of Indian and international stakeholders, including industry leaders, startups, government officials, scientists, academics, and policy experts, aimed at accelerating the domestic production of critical minerals to support India’s economic growth.
Veena Kumari Dermal, Joint Secretary in the Ministry of Mines, emphasized efforts, both domestic and international, to secure critical mineral supply chains, enhance skill development, and focus on mineral recycling in India during her closing remarks. Dermal also highlighted India’s processing technologies for critical minerals and referenced offshore mining regulation amendments. The summit served as a transformative platform for dialogue and collaboration, paving the way for further discussions to outline steps necessary for India’s emergence as a global leader in the critical minerals sector.

Originally posted on: https://smefutures.com/india-woos-foreign-investors-for-big-push-to-critical-minerals-sector/

May 2, 2024
CRISIL SME Tracker: Positive Shifts for Chemicals MSMEs

CRISIL SME Tracker: Positive Shifts for Chemicals MSMEs

The outlook for the domestic chemicals industry is improving as demand rebounds and inventories stabilize.
In the previous fiscal year, factors such as oversupply from China, weak demand in developed markets, and inventory adjustments led to subdued revenue growth.For the current fiscal year, Crisil Research expects the industry to rebound by 7-9% from a lower base.
While certain segments like dyes and pigments, discretionary industries, and agrochemicals continue to face challenges, these are seen as temporary obstacles, and the medium- to long-term outlook remains optimistic.
This positive outlook is particularly beneficial for the 292,856 micro, small, and medium enterprises (MSMEs) that constitute 30% of the domestic chemical industry (according to Ministry of Chemicals & Petrochemicals data), with significant clusters in Thane, Mumbai, and Ahmedabad. Nearly half of these enterprises are engaged in organic manufacturing, while others focus on dyes and pigments, soaps and detergents, with agrochemicals making up 8%.
Among industry segments, specialty chemicals, representing 19-21% of the domestic industry, are expected to see margins rebound by 200-300 basis points this fiscal year after facing erosion last year due to high-priced inventories and lower product realizations.
Within specialty chemicals, agrochemicals are projected to achieve 10-12% revenue growth this fiscal year after experiencing degrowth last year due to low prices and weak demand caused by El Niño and subsequent deficient rainfall. Agrochemicals margins are expected to normalize from the second quarter due to destocking of high-cost inventories.
Colourants, another significant segment of specialty chemicals, are forecasted to achieve 4-6% revenue growth this fiscal year, driven by expectations of interest rate cuts in Europe and the US boosting discretionary spending. This follows a decline of 1-3% last year due to recessionary pressures and inflation affecting market sentiment.
Overall, domestic producers may still face margin pressures as prices of key bulk materials could remain depressed due to ample supplies and the commissioning of newer capacities.

May 2, 2024
Considering Investment in Manufacturing? Opt for a Staggered Approach

Considering Investment in Manufacturing? Opt for a Staggered Approach

Financial planners are advising investors bullish on India’s manufacturing sector story to consider investing in HDFC Asset Management’s Manufacturing Fund, but they recommend spreading the investment over 12 months instead of making a lump sum investment at this time. First-time investors, however, may want to skip this fund launch.
The NFO (New Fund Offer) of HDFC Manufacturing Fund, managed by Rakesh Sethia, is currently open and will close on May 10. Investors can start with as little as ₹100 in this fund, which will be benchmarked against the Nifty India Manufacturing TRI Index. An exit load of 1% will be charged for redemptions made within a month of investment.
“Core sector manufacturing is poised for significant growth driven by government policies, technological advancements, and rising demand,” says Rajat Dhar, managing partner at Finogent Solutions. “Investors seeking to diversify their equity holdings beyond sectors like finance and technology can consider this fund and distribute their investments over the next 6-12 months.”
At least 80% of the scheme’s portfolio will be allocated to shares of sectors such as capital goods, oil & gas, auto, healthcare, consumer durables, metals and mining, chemicals, textiles, and construction materials.
Financial planners are cautioning new investors against rushing into thematic funds. “Investors should first build a core portfolio of diversified funds before exploring thematic funds,” advises S. Shankar, CFP, from Credo Capital.

Originally posted on: https://economictimes.indiatimes.com/mf/analysis/bullish-on-theme-manufacturing-go-for-staggered-investment-plan/articleshow/109708560.cms?from=mdr

April 30, 2024
India Focused on Bridging Infrastructure Gaps to Become Global Manufacturing Hub

Siemens Executives: India Focused on Bridging Infrastructure Gaps to Become Global Manufacturing Hub

According to senior executives at German manufacturing giant Siemens AG, India is actively addressing infrastructure challenges that have historically hindered its manufacturing growth, positioning the country to emerge as a top global manufacturing hub.
Cedrik Neike, a member of Siemens AG’s managing board and CEO of Digital Industries, emphasized India’s strategic importance, highlighting the country’s imminent rise as a significant global player. “It (India) has always been important, but it’s on the brink of being an absolute major player, and we will do everything we can to support India’s growth and success,” Neike told ET.
Sunil Mathur, managing director and CEO of Siemens India, pointed out India’s substantial capital expenditure (capex) commitments, with approximately 60% expected from the public sector and 40% from the private sector in the coming years. “There are not too many countries in the world that are spending $1.2 trillion of capex, so you will get the entire world coming in wanting to participate in India’s growth story,” Mathur stated.
Siemens is actively engaged in discussions with leading entities like the Tata group to design supply chains for semiconductor manufacturing. Additionally, Siemens is exploring partnerships with other firms for the design of semiconductor and battery factories, as well as product and production process design.
Neike highlighted India’s robust talent base, particularly in AI-centric development, emphasizing the country’s significance beyond being merely an “extended workbench” for Siemens. He underscored the pivotal role of Siemens’ Pune software center, which is globally recognized for its integration and innovation.
Neike also discussed the broader economic landscape, noting the importance of efficiency and sustainability in driving businesses towards artificial intelligence (AI) solutions. Siemens is leveraging AI internally to enhance efficiency, simplify products, and harness its extensive data for industrial and energy sectors.
In the context of global investments, Neike emphasized the significance of semiconductor manufacturing amid the AI revolution and geopolitical shifts. He also highlighted key focus areas for Siemens, including advancements in pharmaceuticals towards personalized medicine and the transition from internal combustion engines to electric vehicles in mobility.
Despite global economic variances, Neike highlighted India’s resilience in the discrete manufacturing segment and emphasized the energy sector’s growth driven by sustainability efforts and electrification needs, positioning mobility for a sustained upward trend.

April 29, 2024
Why the SMB Financing Gap in India is an Exciting Opportunity for Fintech Founders

Why the SMB Financing Gap in India is an Exciting Opportunity for Fintech Founders

Small and medium business (SMB) financing in India poses a substantial opportunity for fintech founders, who can harness technology to revolutionize SMB lending. Despite challenges, fintech innovators have significant potential to pioneer solutions across four key themes.
When SMB owners in India seek credit from banks today, they often face hurdles such as lack of credit history, insufficient collateral, and complex documentation requirements. Unable to meet formal lending criteria, many turn to informal sources like moneylenders, contributing to a fragmented market estimated at over $500 billion.
Despite SMBs contributing significantly to the national GDP, they struggle with a persistent financing gap due to challenges faced by formal lenders, including high operational costs (OPEX) and non-performing assets (NPAs) within the SMB segment. Traditional lenders and Non-Banking Financial Companies (NBFCs) have made limited progress in addressing this gap.
However, SMB financing in India presents a compelling opportunity for fintech founders to leverage technology and drive innovation in four key solution areas.
One such solution theme is anchor lending, which involves introducing a credible anchor between lenders and borrowers. Anchors help reduce operational costs and minimize NPAs by sharing risk through mechanisms like First Loss Default Guarantee (FLDG) or providing borrower data for underwriting.
Anchor-led lending leverages established institutions’ credibility to enhance SMBs’ access to finance, particularly in sectors like supply chain financing and education financing.
Another solution theme is embedded lending, where financial options are integrated with non-financial products or services. This approach enhances loan conversion rates and reduces distribution costs by embedding lending services into existing customer relationships.
A third solution, sunrise sector lending, focuses on emerging sectors with high growth potential, anticipating future financing needs not adequately addressed by traditional underwriting processes.
Finally, sachet lending targets small loans (less than Rs 2 lakh) for short durations, making use of digitization to reduce operational costs and enable prompt loan disbursement.
These innovative approaches signify the beginning of a transformative era for SMB financing in India. Fintechs and technology-led NBFCs are poised to drive substantial growth and bridge the financing gap by pioneering solutions tailored to the unique needs of SMBs in the country.

April 29, 2024