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Fssai advisory on misleading “100%” food claims

Fssai advisory on misleading “100%” food claims

The Food Safety and Standards Authority of India (FSSAI) has released a crucial advisory targeting misleading claims in food labelling and food advertising. This directive specifically addresses the use of “100%” claims on food product packaging. The FSSAI’s move aims to safeguard consumers from deceptive marketing practices and ensure accurate representation of food products. This advisory is a significant step towards strengthening food safety and food standards across India.

The FSSAI’s advisory cautions Food Business Operators (FBOs) against using unqualified statements such as “100% pure”, “100% natural”, or “100% safe” on their products. These 100% claims can often mislead consumers into believing a product is entirely free from additives, contaminants, or processing, which may not always be the case. The regulator emphasises the need for transparent and truthful information on food labels to enable informed purchasing decisions.

This advisory from the FSSAI is likely to have a considerable impact, particularly on SMEs and startups operating within India’s food sector. Many of these businesses rely heavily on marketing strategies that highlight perceived purity or naturalness to attract customers. The new guidelines will require them to reassess their current food labelling and food advertising practices to ensure compliance with food regulations and avoid potential penalties for misleading claims.
Common Misleading Claims
The FSSAI advisory highlights several common examples of misleading claims that FBOs often employ. One prevalent tactic involves using “100% natural” claims on products that have undergone significant processing or contain added ingredients. For example, a fruit juice labelled “100% natural” might contain added sugars or preservatives, contradicting the claim. Similarly, the term “100% pure” is frequently misused on products like honey or ghee, even when they may contain traces of adulterants or have been processed in a way that alters their original composition. These misleading claims undermine consumer trust and distort the market.

Another area of concern is the use of “100% safe” claims. The FSSAI points out that no food product can be guaranteed to be entirely risk-free for all consumers. Factors such as individual allergies, sensitivities, or pre-existing health conditions can influence how a person reacts to a particular food. Therefore, making blanket “100% safe” statements on food packaging is considered misleading and potentially dangerous. The FSSAI emphasises that FBOs must avoid making unqualified safety assertions and instead focus on providing accurate information about ingredients, potential allergens, and proper usage instructions to promote food safety.

Furthermore, the advisory addresses instances where companies use creative wording to imply a “100% claim” without explicitly stating it. This includes phrases like “made with 100% real ingredients” when only some of the ingredients meet that standard. Such subtle forms of deception also fall under the purview of the FSSAI’s scrutiny. The regulator is urging SMEs and larger businesses across India to review their food labelling and food advertising materials carefully to ensure they are not making any overt or implied misleading claims that could violate food regulations and compromise food standards. Compliance with these guidelines is crucial for maintaining consumer confidence and fostering a fair marketplace.
Understanding The Regulations
The FSSAI’s stance on “100% claims” is rooted in the Food Safety and Standards Act, 2006, and associated regulations. These regulations mandate that food labels must provide clear, accurate, and truthful information about the product’s contents, origin, and manufacturing process. The Act empowers the FSSAI to set food standards, regulate food manufacturing, distribution, and sale, and take action against FBOs that violate food regulations. The current advisory serves as a clarification and reinforcement of these existing legal provisions, specifically targeting the deceptive use of “100% claims” in food labelling and food advertising.

Specifically, the FSSAI’s regulations pertaining to food labelling require that all ingredients be listed in descending order of weight, and any additives, preservatives, or processing aids must be clearly identified. Nutritional information, including calorie count, fat content, and sugar levels, must also be prominently displayed. The “100% claim”, when used, must be substantiated by verifiable evidence and not contradict any other information provided on the packaging. For instance, a product labelled “100% juice” must genuinely consist of only juice without any added sugars, preservatives, or artificial flavourings. Any deviation from these requirements can lead to enforcement action by the FSSAI.

Furthermore, the FSSAI’s advisory draws attention to the broader principles of fair trade and consumer protection enshrined in Indian law. The Consumer Protection Act, 2019, prohibits unfair trade practices, including misleading food advertising and false representations about the quality, quantity, or composition of goods. By issuing this advisory, the FSSAI is reinforcing its commitment to upholding these principles and ensuring that consumers in India are not misled by deceptive marketing tactics. The FSSAI aims to create a level playing field for businesses while safeguarding the health and economic interests of consumers. This focus is important to improve food safety and food standards across India, especially for SMEs.
Compliance And Enforcement
The FSSAI has outlined a multi-pronged approach to ensure compliance with its advisory on misleading claims. This includes proactive monitoring of food labelling and food advertising across various platforms, from physical packaging to online advertisements. The FSSAI will conduct regular inspections of food manufacturing facilities and retail outlets to verify that FBOs are adhering to the guidelines. This rigorous oversight is designed to deter the use of misleading claims and promote transparency in the food sector. Consumers also play a vital role in enforcement by reporting suspected violations to the FSSAI.

In cases of non-compliance, the FSSAI has the authority to take a range of enforcement actions against FBOs. These actions may include issuing warning notices, imposing monetary penalties, suspending or cancelling licenses, and even initiating legal proceedings. The severity of the penalty will depend on the nature and extent of the violation, as well as the FBO’s history of compliance. The FSSAI is committed to ensuring that penalties are proportionate and serve as a deterrent against future violations. This firm stance underscores the FSSAI’s commitment to upholding food safety and food standards.

To further support compliance, the FSSAI plans to conduct educational outreach programs for SMEs and other stakeholders in the food industry. These programs will provide guidance on best practices for food labelling and food advertising, as well as clarification on the specific requirements of the advisory. The FSSAI believes that education and awareness are crucial for fostering a culture of compliance within the industry. These outreach programs will help FBOs understand their obligations and avoid unintentional violations of food regulations. The FSSAI advisory is designed to protect consumers from misleading claims and promote fair competition in the Indian food market.

June 11, 2025
Up government boosts msme exports with upnva campaign

Up government boosts msme exports with upnva campaign

The Uttar Pradesh government has officially launched the UPNVA campaign, a strategic initiative designed to significantly boost exports from the state’s Micro, Small, and Medium Enterprises (MSME) sector. The campaign aims to provide a comprehensive support system for small businesses, enabling them to access global markets more effectively. UPNVA represents a multi-pronged approach, incorporating training programmes, financial assistance, and logistical support to empower MSMEs to compete on an international scale. The up government envisions this campaign as a catalyst for economic growth, fostering job creation and enhancing the overall competitiveness of Uttar Pradesh.

The UPNVA campaign will focus on identifying and nurturing export-ready MSMEs across various sectors within Uttar Pradesh. It includes workshops on export procedures, quality control, and international marketing strategies. Furthermore, the campaign will facilitate participation in international trade fairs and exhibitions, providing a platform for MSMEs to showcase their products and establish valuable business connections. The upnva campaign seeks to streamline the export process, reducing bureaucratic hurdles and making it easier for small businesses to navigate the complexities of international trade. The ultimate goal is to drive substantial growth in msme exports from Uttar Pradesh.
Msme Export Growth Strategy
The UP government’s MSME export growth strategy hinges on several key pillars. Central to this is identifying high-potential sectors within Uttar Pradesh, such as handicrafts, textiles, leather goods, and agricultural products. The UPNVA campaign will then provide targeted support to businesses in these sectors, helping them to adapt their products and processes to meet international standards. This involves rigorous quality control measures, adherence to global certifications, and the adoption of sustainable production practices.

Another crucial aspect of the strategy involves strengthening the export infrastructure within Uttar Pradesh. This includes improving transportation networks, streamlining customs procedures, and establishing dedicated export promotion zones. The UP government is also working to enhance access to export finance, providing MSMEs with the capital they need to scale up their operations and compete effectively in international markets. This support extends to helping small businesses navigate complex trade regulations and access market intelligence, ensuring they are well-informed and prepared to succeed.

Furthermore, the strategy emphasises the importance of collaboration between government agencies, industry associations, and academic institutions. The UPNVA campaign will facilitate partnerships between MSMEs and research institutions, promoting innovation and the development of new exportable products. It will also work closely with industry associations to identify common challenges and develop collective solutions. This collaborative approach is essential to creating a supportive ecosystem for MSME exports and driving sustainable economic growth across Uttar Pradesh.
Government Support Initiatives
The Uttar Pradesh government is implementing a range of support initiatives to bolster the UPNVA campaign and ensure its success. These initiatives include financial assistance programmes, skill development training, and infrastructure improvements specifically designed to benefit MSMEs. Subsidised loans and credit guarantee schemes are available to help small businesses access the capital they need to expand their production capacity and fulfil export orders. The up government understands the financial constraints often faced by msmes and is committed to providing targeted financial support.

Furthermore, the upnva campaign provides extensive skill development training to enhance the capabilities of workers in the MSME sector. These training programmes cover a wide range of topics, including modern manufacturing techniques, quality control procedures, and international marketing strategies. The goal is to equip MSMEs with the skills they need to produce high-quality goods that meet international standards and to effectively market their products to global customers. The up government believes that investing in human capital is essential for driving sustainable export growth.

In addition to financial assistance and skill development, the up government is also focusing on improving the infrastructure that supports MSME exports. This includes upgrading transportation networks, streamlining customs procedures, and establishing dedicated export promotion zones. The aim is to reduce the time and cost associated with exporting goods from Uttar Pradesh, making it easier for small businesses to compete in international markets. These initiatives collectively contribute to a more conducive environment for MSME growth and facilitate increased exports from the region.
Expected Economic Impact
The UPNVA campaign is projected to have a significant and multifaceted economic impact on Uttar Pradesh. By fostering growth in MSME exports, the campaign is expected to generate substantial revenue for the state, contributing to overall economic prosperity. Increased exports will lead to higher production levels, creating new employment opportunities across various sectors. This will not only reduce unemployment rates but also improve the living standards of many families in Uttar Pradesh. The up government anticipates a significant boost to the state’s GDP as a direct result of the campaign’s success.

Furthermore, the UPNVA campaign is expected to enhance the competitiveness of Uttar Pradesh’s MSME sector on a global scale. By providing small businesses with the necessary training, financial assistance, and logistical support, the campaign will enable them to produce higher-quality goods and services that meet international standards. This will not only increase exports but also attract foreign investment to the state, further stimulating economic growth. The long-term impact of the UPNVA campaign is expected to be a more diversified and resilient economy in Uttar Pradesh, less reliant on domestic markets and more capable of competing in the global arena.

The success of the UPNVA campaign will also have a positive ripple effect on other sectors of the Uttar Pradesh economy. Increased demand for raw materials and components from MSMEs will benefit local suppliers, creating further employment opportunities and stimulating economic activity in rural areas. The campaign is also expected to promote innovation and entrepreneurship, as small businesses are encouraged to develop new products and services for export markets. The upnva campaign represents a strategic investment in the future of Uttar Pradesh, with the potential to transform the state into a major export hub.

June 11, 2025
India’s cashless journey, digital payments, Nirmala Sitharaman, last 11 years, financial revolution

India’s cashless journey, digital payments, Nirmala Sitharaman, last 11 years, financial revolution

India is currently undergoing a significant shift towards digital payments, establishing itself as a leader in the global fintech landscape. Recent data highlights the rapid adoption of Unified Payments Interface (UPI) with daily transactions exceeding ₹70,000 crore. The sheer volume of transactions, exemplified by 596 million transactions processed in a single day, demonstrates the extent to which digital payments are becoming the standard method of exchange for many Indians.
The month of May showcased UPI’s robust growth, with 18.68 billion transactions recorded, an increase from 17.89 billion in April. This represents a 33 per cent year-on-year surge compared to the 14.03 billion transactions processed in May of the previous year. The value of these transactions also saw a substantial rise, reaching ₹25.14 lakh crore last month, marking a 5 per cent increase from ₹23.95 lakh crore in April and a 23 per cent rise from ₹20.45 lakh crore in May of the previous year.
The average daily transaction volume now stands at 602 million, with an average daily transaction value of ₹81,106 crore. These figures underline the increasing reliance on UPI for both small and large transactions. The National Payments Corporation of India (NPCI) data shows UPI’s growing dominance in the country’s digital payments ecosystem. Its share in the total transaction volume has risen to 83.7 per cent in the current financial year, up from 79.7 per cent in the previous financial year. This reinforces UPI’s position as the primary driver of cashless transactions across India.
Evolution over the last decade
Over the past decade, India’s digital payment landscape has undergone a transformative evolution, driven by technological advancements, policy interventions, and a growing consumer appetite for convenient and secure transaction methods. The journey began with initial forays into electronic fund transfers and mobile banking, gradually gaining momentum with the introduction of innovative platforms and applications.
The early 2010s witnessed the rise of mobile wallets and payment gateways, offering consumers alternatives to traditional banking channels. These platforms provided ease of use and accessibility, particularly for the tech-savvy urban population. However, adoption remained limited due to concerns about security, interoperability, and a lack of widespread awareness. The turning point came with the launch of the Unified Payments Interface (UPI) in 2016.
UPI revolutionised the digital payments ecosystem by enabling seamless and instant money transfers between bank accounts using a single mobile application. Its interoperability, coupled with a user-friendly interface, facilitated widespread adoption across diverse demographics. The government’s push for financial inclusion, coupled with initiatives like demonetisation, further accelerated the shift towards digital transactions. The result has been exponential growth in digital payments, transforming India into a global leader in fintech innovation. This growth has not only streamlined financial transactions but also empowered small businesses and individuals, fostering economic growth and inclusion.
Government initiatives and Nirmala Sitharaman’s role
The Indian government has played a crucial role in fostering the growth of digital payments, with Finance Minister Nirmala Sitharaman being a prominent advocate for this financial transformation. Government policies and initiatives have been instrumental in creating an environment conducive to the adoption of cashless transactions. The emphasis on financial inclusion, combined with the promotion of digital literacy, has empowered citizens across various socio-economic backgrounds to participate in the digital economy.
Nirmala Sitharaman has consistently highlighted the benefits of digital payments, emphasising their role in enhancing transparency, reducing corruption, and improving efficiency in financial transactions. Her support for initiatives like UPI has been pivotal in driving its widespread adoption. By actively promoting the use of digital platforms, the government aims to create a more robust and inclusive financial system. Sitharaman’s leadership in this area underscores the government’s commitment to leveraging technology for economic development and citizen empowerment.
Furthermore, the government has implemented various schemes and incentives to encourage the use of digital payment methods. These include tax benefits for merchants accepting digital payments and awareness campaigns to educate the public about the security and convenience of cashless transactions. The collaborative efforts between the government, regulatory bodies, and private sector players have been essential in creating a vibrant and innovative digital payments ecosystem. This collaborative approach ensures that India remains at the forefront of the global digital payments revolution.
Challenges and the future of cashless India
Despite the impressive growth and widespread adoption of digital payments in India, several challenges remain. One of the most significant is the digital divide, with a substantial portion of the population still lacking access to the internet and smartphones. This disparity limits the reach of digital payment solutions, particularly in rural areas and among lower-income groups. Bridging this divide requires concerted efforts to improve digital infrastructure and promote digital literacy.
Cybersecurity concerns also pose a significant challenge. As digital transactions increase, so does the risk of fraud and data breaches. Ensuring the security and integrity of digital payment systems is crucial for maintaining public trust and preventing financial losses. This necessitates robust cybersecurity measures, including advanced encryption technologies, fraud detection systems, and user awareness campaigns. Collaboration between financial institutions, technology providers, and regulatory bodies is essential to address these evolving threats.
Looking ahead, the future of cashless India appears promising, with significant opportunities for further innovation and growth. The integration of emerging technologies like blockchain and artificial intelligence (AI) could enhance the security, efficiency, and accessibility of digital payment systems. For example, blockchain could provide a more transparent and secure platform for transactions, while AI could be used to detect and prevent fraudulent activities in real-time. Continued investment in digital infrastructure, coupled with supportive government policies, will be crucial for realising the full potential of cashless India. The focus should be on creating a seamless, secure, and inclusive digital payments ecosystem that benefits all citizens.

June 10, 2025
New credit cover aids MSME exporters by September

New credit cover aids MSME exporters by September

The central government is drafting a new credit guarantee scheme for export-oriented MSMEs, with the aim of finalising it within a month. This initiative focuses on providing collateral-free loans of up to Rs 20 crore per borrower, significantly boosting trade finance accessibility for small businesses. The scheme intends to offer substantial credit cover to mitigate risks associated with export activities.

Under the proposed framework, the scheme may guarantee up to 95% of loans for micro and small enterprises, offering robust support to the sector. Medium enterprises can expect a guarantee of up to 75% on their loans, ensuring a considerable level of risk mitigation. The guarantee fee for borrowers is projected to be around 1.5%, making the scheme affordable and accessible.

A senior official stated that the government aims to roll out the scheme by September. The scheme will remain active for six years, aligning with the 16th Finance Commission award cycle, which concludes at the end of fiscal year 2031. This long-term commitment provides stability and assurance to exporters, fostering a conducive environment for growth and expansion in international markets. The new credit cover should help to reduce reliance on export insurance in some cases.
Benefits For Exporters
This enhanced credit cover promises substantial benefits for exporters, particularly small businesses striving to expand their global footprint. By providing guarantees on loans, the scheme reduces the need for collateral, unlocking much-needed trade finance for MSMEs. This increased access to capital enables exporters to fulfil larger orders, invest in new technologies, and explore new markets, ultimately driving export growth and contributing to the nation’s economic prosperity.

Furthermore, the scheme’s risk mitigation aspect provides a safety net for exporters, shielding them from potential losses due to unforeseen circumstances in international trade. This security encourages businesses to take calculated risks and pursue ambitious export strategies, fostering innovation and competitiveness. The reduction in reliance on export insurance translates to lower operational costs for exporters, further enhancing their profitability and competitiveness in the global marketplace. The credit cover aims to create a more level playing field, enabling even the smallest exporters to compete effectively on the international stage.
Expected Implementation Timeline
The government is working diligently to ensure the scheme’s launch by September. This ambitious timeline reflects the urgency in addressing the trade finance needs of MSME exporters. Preparations are underway across various departments to streamline the approval process and ensure seamless implementation. The focus is on creating a user-friendly platform for small businesses to access the credit cover without unnecessary bureaucratic hurdles.

The proposed six-year operational period, extending until the end of FY31, provides exporters with a long-term perspective for their export strategies. This extended duration allows businesses to confidently invest in capacity building, market development, and innovation, knowing that the credit cover will be available to support their growth over the medium term. The government believes this stability will encourage exporters to explore new markets and forge lasting international partnerships, contributing to sustained export growth and economic diversification. This also provides ample time to assess the scheme’s effectiveness and make any necessary adjustments.

The September launch date is a key target, and stakeholders are working collaboratively to meet this deadline. This includes finalising the operational guidelines, setting up the necessary infrastructure, and conducting awareness campaigns to educate exporters about the benefits of the scheme. The government is committed to ensuring that all eligible MSME exporters can easily access and benefit from this vital credit cover, thereby boosting their competitiveness and contributing to the nation’s export success. The emphasis on risk mitigation and enhanced trade finance accessibility is expected to have a significant positive impact on the export sector.

June 9, 2025
RBI Rate Cut Forecast for 2025: What to Expect

RBI Rate Cut Forecast for 2025: What to Expect

The Reserve Bank of India (RBI) is widely expected to implement a rate cut in the coming months, driven by a confluence of factors suggesting a need for more accommodative monetary policy. Inflation, while still above the RBI’s comfort zone, has shown signs of easing, prompting a reassessment of the current restrictive stance. Furthermore, concerns about sustaining economic growth momentum are mounting, particularly given global headwinds and subdued domestic demand in certain sectors.

Several economists believe the RBI is preparing to act. A key consideration is the real interest rate, which remains relatively high. By reducing the repo rate, the RBI aims to lower borrowing costs for businesses and consumers, encouraging investment and spending. Market participants are closely watching upcoming inflation data and the central bank’s commentary for further clues about the timing and magnitude of the anticipated rate cut. Nomura, for example, has revised its forecast and now anticipates the first rate cut in the fourth quarter of 2024, followed by further easing into 2025.

The potential rate cut isn’t solely about immediate economic stimulus. The RBI also considers the broader financial stability implications. A measured approach is expected, with the central bank carefully calibrating the size of the rate cut – likely in increments of 25 basis points – to avoid destabilising the currency market or triggering inflationary pressures. The decision-making process involves a delicate balancing act between supporting growth and maintaining price stability, a challenge the Monetary Policy Committee (MPC) is keenly aware of.
Impact On Borrowers
A rate cut by the RBI will have a direct and positive impact on borrowers across various segments. Lower repo rate translates to reduced lending rates for banks, which they are likely to pass on to their customers. This means individuals with existing loans, such as home loans, auto loans, and personal loans, can expect their equated monthly instalments (EMIs) to decrease. For new borrowers, the cost of taking out a loan will also be lower, making credit more accessible and affordable.

The extent of the benefit will depend on the transmission of the rate cut by individual banks. While the RBI’s monetary policy actions influence overall interest rates, banks ultimately decide how much of the rate cut they pass on to their customers. Factors such as their own cost of funds and competitive pressures will play a role in their decision-making. Borrowers should compare offers from different banks to secure the best possible interest rates.

Beyond individual borrowers, businesses will also benefit from lower borrowing costs. Companies seeking to expand their operations, invest in new equipment, or manage their working capital will find it cheaper to access credit. This can lead to increased investment, job creation, and overall economic growth. A reduction in interest expenses can also improve the profitability of businesses, allowing them to become more competitive. The impact will be felt particularly strongly by small and medium-sized enterprises (SMEs), which often rely heavily on bank financing.
Expert Predictions
Experts hold varied opinions regarding the precise timing and magnitude of the upcoming rate cut. While a consensus exists that the RBI will eventually ease its monetary policy, the degree of certainty and the expected timeline differ. Some economists, like those at Nomura, have already issued revised forecasts, predicting a rate cut as early as the fourth quarter of 2024. They base their assessment on the moderating inflation and the need to stimulate economic activity.

Other analysts remain more cautious, suggesting that the RBI will likely adopt a wait-and-see approach, closely monitoring incoming economic data before making any firm decisions. These experts emphasise the importance of ensuring that inflation remains firmly under control before loosening monetary policy. They suggest that the central bank may prefer to wait until there is more concrete evidence of a sustained decline in inflation before implementing a rate cut.

The size of the potential rate cut is also a subject of debate. While most analysts expect the RBI to move in increments of 25 basis points, some suggest that a larger, more aggressive rate cut may be necessary to provide a significant boost to the economy. However, this would carry the risk of destabilising the currency market and fuelling inflationary pressures. Therefore, the RBI will likely proceed with caution, carefully weighing the potential benefits and risks of each policy decision. Most forecasts anticipate a cumulative reduction of 50-75 basis points in the repo rate by the end of 2025.
Market Reaction
The anticipation of a rate cut has already started influencing market sentiment. The bond market has reacted positively, with yields on government securities softening in recent weeks. This reflects expectations that the RBI will soon begin to ease its monetary policy, leading to increased demand for bonds and pushing prices higher. The equity market has also shown a positive response, with banking and financial stocks, in particular, experiencing gains. Investors anticipate that lower interest rates will boost credit growth and improve the profitability of financial institutions.

The currency market’s reaction is more complex. While a rate cut could potentially weaken the rupee, the impact may be mitigated by other factors, such as strong foreign exchange reserves and positive investor sentiment towards the Indian economy. The RBI is likely to manage the currency market carefully, intervening if necessary to prevent excessive volatility. Analysts at Nomura suggest that the overall impact on the rupee will depend on the magnitude and pace of the rate cuts, as well as global economic conditions.

Corporate bond spreads are also expected to narrow as the prospect of lower interest rates makes it cheaper for companies to borrow money. This will improve the financial health of businesses and encourage investment. The overall market reaction will depend on the RBI’s communication strategy and the clarity it provides regarding its future policy intentions. A well-communicated and gradual approach to rate cuts is likely to be viewed favourably by the markets, minimising the risk of any negative surprises. Market participants are closely monitoring the evolving economic landscape and the RBI’s signals to adjust their investment strategies accordingly. Many forecasts anticipate a positive market trajectory in the event of a well-managed rate cut in 2025.

June 5, 2025
IESA champions green ev battery reuse

IESA champions green ev battery reuse

India Energy Storage Alliance (IESA) champions a future where EV batteries don’t simply become waste at the end of their first life. IESA envisions a robust ecosystem built around the reuse of these batteries, transforming them from potential environmental hazards into valuable resources. Their vision is rooted in the principles of sustainability, aiming to minimise the environmental impact of electric vehicles and promote a circular economy.

IESA sees tremendous potential in repurposing EV batteries for various secondary applications. This includes energy storage systems for homes, businesses, and even grid-scale projects. By giving EV batteries a second life, IESA aims to reduce the demand for new battery production, conserving precious resources and lowering carbon emissions. They actively promote the adoption of green technology and best practices within the industry.

As a leading industry body, IESA is actively working to facilitate the development of this ecosystem. They are involved in research, policy advocacy, and awareness campaigns to highlight the benefits of battery reuse and recycling. Their work focuses on creating a supportive environment for businesses and innovators to thrive in this emerging sector, ultimately driving the growth of a sustainable energy storage market in India and beyond.

Benefits Of Battery Reuse

Repurposing EV batteries offers a multitude of advantages that extend beyond environmental considerations. Economically, it can significantly reduce the cost of energy storage solutions. Second-life batteries, while not suitable for the demanding requirements of electric vehicles, can still provide substantial energy storage capacity for less critical applications, making energy storage more accessible to a wider range of consumers and businesses.

From a sustainability perspective, battery reuse minimises the environmental footprint associated with battery production. Extracting raw materials and manufacturing new batteries are energy-intensive processes that contribute to greenhouse gas emissions. By extending the lifespan of EV batteries through reuse, we can significantly reduce the demand for these resource-intensive activities. This aligns perfectly with IESA’s commitment to promoting green technology and a circular economy in India.

Moreover, a thriving battery reuse industry creates new economic opportunities and jobs. The processes involved in testing, refurbishing, and repurposing EV batteries require skilled technicians and engineers, fostering innovation and growth in the energy storage sector. As an industry body, IESA recognises the potential for India to become a global leader in battery reuse and recycling, driving economic growth while promoting environmental stewardship.

Reuse Challenges And Solutions

Despite the clear advantages, the path to widespread EV battery reuse isn’t without its obstacles. One major hurdle lies in the standardisation of battery technology. The lack of uniformity in battery designs, chemistries, and management systems across different electric vehicles makes it challenging and costly to assess, repurpose, and integrate second-life EV batteries into new applications. This inconsistency increases the complexity of testing and refurbishment processes, hindering the scalability of reuse initiatives.

Another significant challenge is ensuring the safety and performance of reused EV batteries. Thorough testing and certification are essential to guarantee that these batteries meet the required safety standards for their new applications. Concerns about degradation, thermal runaway, and potential hazards need to be addressed through rigorous quality control measures. Developing robust testing protocols and certification frameworks is crucial for building trust and confidence in the reliability of second-life batteries.

To overcome these challenges, collaboration is key. IESA actively promotes partnerships between automakers, battery manufacturers, energy storage companies, and research institutions. By working together, stakeholders can develop common standards, share best practices, and create innovative solutions for battery reuse and recycling. Furthermore, government support and policy incentives are essential to encourage investment in this emerging sector and accelerate the transition towards a circular economy for EV batteries in India. This includes financial support for research and development, tax incentives for companies involved in battery reuse, and clear regulatory frameworks to ensure responsible and sustainable practices. IESA, as a leading industry body, is actively advocating for such policies.

Industry Collaboration And Growth

The growth of the EV battery reuse sector hinges significantly on robust collaboration between various stakeholders. IESA plays a pivotal role in fostering these partnerships, bringing together automakers, battery manufacturers, energy storage companies, and research institutions. These collaborative efforts are crucial for establishing industry standards, streamlining processes, and promoting best practices for EV batteries’ second life.

Standardisation of battery technology is a key area where industry-wide cooperation is essential. By working towards common battery designs and management systems, the challenges associated with assessing, repurposing, and integrating second-life EV batteries can be significantly reduced. This will make the reuse process more efficient and cost-effective, ultimately boosting the scalability of reuse initiatives across India.

Furthermore, collaborative research and development initiatives are vital for advancing battery reuse technologies. By pooling resources and expertise, stakeholders can develop innovative solutions for testing, refurbishment, and integration of second-life batteries into various applications. This includes exploring new chemistries, improving battery management systems, and developing advanced diagnostic tools to ensure the safety and performance of reused batteries. IESA, as a prominent industry body, actively facilitates these collaborative projects to accelerate the growth of the green technology sector.

Government support and policy incentives are also critical drivers of industry growth. Clear regulatory frameworks, financial support for research and development, and tax incentives for companies involved in battery reuse and recycling can create a favourable environment for investment and innovation. IESA actively engages with policymakers to advocate for policies that promote sustainability and the circular economy for EV batteries in India, driving the transition towards a greener future for electric vehicles.

June 5, 2025
Decathlon’s Indian ambition

Decathlon’s Indian ambition

The Indian market presents a compelling, yet complex, landscape for sports retail giants like Decathlon. Boasting a young and increasingly health-conscious population, India has witnessed a surge in fitness fads and a growing interest in diverse sporting activities. This burgeoning demand is fuelled by rising disposable incomes and greater awareness of the benefits of an active lifestyle. However, this potential is tempered by several factors. The market is highly price-sensitive, and competition is fierce, ranging from established domestic players to international brands. Furthermore, infrastructure challenges and logistical complexities can impact supply chain efficiency and overall profitability. Despite these hurdles, the sheer size and growth potential of the Indian market make it an attractive target for Decathlon’s expansion plans. Decathlon recognises the importance of tailoring its offerings to suit local preferences and price points. The company is actively exploring opportunities to leverage the “Make in India” initiative, aiming to source and manufacture more products locally. This strategy not only reduces costs but also allows Decathlon to better cater to the specific needs and tastes of Indian consumers. The company’s commitment to sustainability and circularity also resonates with an increasingly environmentally aware consumer base.
Growth Strategy Details
Decathlon’s growth strategy in India hinges on a multi-pronged approach. A key element is expanding its physical presence through a mix of large-format stores in metropolitan areas and smaller, more accessible outlets in Tier 2 and Tier 3 cities. This ensures wider reach and caters to diverse customer segments. The company also focuses on strengthening its online presence, recognising the increasing importance of e-commerce in the Indian market. A seamless online-offline experience is crucial to capture the digitally savvy consumer base. Another vital aspect of Decathlon’s strategy is product localisation. The company is actively investing in research and development to create products specifically designed for the Indian climate, playing conditions, and consumer preferences. By increasing local sourcing through the “Make in India” initiative and manufacturing, Decathlon aims to offer competitive prices while maintaining quality standards. This commitment to localisation demonstrates a deep understanding of the Indian market and its unique requirements. Beyond product and channel strategies, Decathlon is building strong community engagement through sports events, workshops, and partnerships with local sports clubs and schools. This approach fosters brand loyalty and promotes a sporting culture. Emphasising value-added services such as equipment rentals, repair services, and personalised sports advice further enhances the customer experience. Decathlon’s commitment to circularity, with initiatives like product buy-back and recycling programs, appeals to environmentally conscious consumers and reinforces its brand values within the competitive sports retail landscape.
Challenges And Opportunities
Decathlon’s path in the Indian market, while promising, is paved with both significant challenges and abundant opportunities. One of the major hurdles is navigating the complex regulatory landscape, which can vary significantly from state to state. Obtaining necessary permits and approvals can be time-consuming and bureaucratic, potentially delaying expansion plans. Furthermore, infrastructure limitations, particularly in smaller cities and rural areas, pose logistical difficulties for efficient supply chain management. These challenges demand a robust and adaptable operational strategy. However, these challenges are counterbalanced by immense opportunities. The increasing adoption of digital technologies across India provides a significant avenue for Decathlon to expand its reach and engage with customers through e-commerce platforms and digital marketing. The growing popularity of fitness fads and sports activities among the younger generation presents a vast, untapped market for sports retail. Decathlon can capitalise on this trend by offering a diverse range of products and services that cater to the evolving needs and preferences of Indian consumers. Moreover, the “Make in India” initiative offers Decathlon the opportunity to establish local manufacturing facilities, reduce costs, and create employment opportunities. Another opportunity lies in embracing sustainability and circularity. As environmental awareness grows among Indian consumers, Decathlon’s commitment to eco-friendly practices, such as using recycled materials and offering product repair services, can resonate strongly with its target audience. The company can further strengthen its brand image by actively promoting sustainable sporting habits and supporting environmental conservation initiatives. By addressing both the challenges and opportunities strategically, Decathlon can solidify its position as a leading player in the Indian sports retail market and contribute to the growth of the sporting culture in the country.
Competitive Landscape
The Indian sports retail sector is a dynamic arena with a mix of international and domestic players vying for market share. Decathlon faces stiff competition from established Indian brands like Reliance Retail’s Trends, Lifestyle, and Shoppers Stop, which have a strong understanding of local consumer preferences and well-established distribution networks. These retailers often offer a wider range of apparel and footwear brands, catering to diverse fashion sensibilities alongside sporting goods. International competitors such as Adidas, Nike, and Puma also hold significant positions in the Indian market. They leverage their global brand recognition and premium product offerings to attract a segment of consumers willing to pay a premium for quality and performance. These brands often partner with celebrities and sports personalities to enhance their brand image and appeal to aspirational consumers. Decathlon distinguishes itself through its focus on offering high-quality, affordable sports equipment and apparel across a wide range of sports, targeting a broader demographic. The rise of e-commerce has further intensified the competitive landscape, with online platforms like Amazon, Flipkart, and Myntra offering a vast selection of sports goods from various brands. Decathlon needs to effectively compete in the digital space by providing a seamless online shopping experience, competitive pricing, and efficient delivery services. The company’s commitment to “make in India” initiative and “circularity” initiatives can further differentiate it from competitors by appealing to environmentally conscious consumers and offering locally relevant products. The key to success in this competitive environment lies in understanding the nuances of the “Indian market”, adapting to evolving consumer preferences, and offering a compelling value proposition that balances quality, affordability, and sustainability.

June 5, 2025
India’s gpu surge boosts indigenous ai

India’s gpu surge boosts indigenous ai

India’s burgeoning artificial intelligence (AI) landscape is experiencing a significant acceleration, fuelled by the increasing availability and deployment of powerful Graphics Processing Units (GPUs). These GPUs are the workhorses behind the complex computations required for training and running sophisticated AI models, making them indispensable for advancements in various sectors. The surge in GPU adoption marks a pivotal milestone in India’s journey towards establishing a robust indigenous AI ecosystem.

The demand for GPUs is being driven by both public and private sector initiatives. Research institutions are leveraging GPU-powered supercomputing infrastructure to conduct cutting-edge AI research, focusing on areas like natural language processing, computer vision, and machine learning. Start-ups are also increasingly relying on GPUs to develop innovative AI-driven solutions for healthcare, finance, and agriculture. This widespread adoption demonstrates the transformative potential of GPU technology in unlocking new possibilities for AI development across diverse industries within India.

One notable example is the deployment of advanced supercomputing facilities equipped with a substantial number of GPUs. These facilities provide researchers and developers with the computational muscle necessary to tackle complex AI challenges. For instance, the installation of a cluster with over 34000 GPUs significantly enhances the nation’s capacity for training large-scale AI models. This enhanced infrastructure empowers India to compete globally in the rapidly evolving field of artificial intelligence. The accessibility of such resources is crucial for fostering innovation and nurturing a skilled workforce in the AI domain.
Government Initiatives Driving Growth
The Indian government is playing a crucial role in accelerating the adoption of AI through a range of strategic initiatives. These initiatives aim to foster innovation, build capacity, and promote the development of an indigenous AI ecosystem. A key focus is on creating a supportive regulatory environment that encourages responsible AI development and deployment. The government recognises that a clear and ethical framework is essential for building public trust and ensuring that AI benefits all segments of society.

Investment in research and development is another cornerstone of the government’s AI strategy. Significant funding is being allocated to support AI research projects in academic institutions and research labs across India. These projects cover a wide spectrum of AI applications, from healthcare and agriculture to smart cities and cybersecurity. By fostering collaboration between academia, industry, and government, India aims to create a vibrant ecosystem that drives innovation and translates research breakthroughs into real-world solutions. This strategic funding ensures the continued acceleration of AI technology.

Furthermore, the government is actively promoting skills development in AI and related fields. Several programs have been launched to train students, researchers, and professionals in the latest AI technologies, including GPU-accelerated computing and deep learning. These programs are designed to address the growing demand for skilled AI professionals and ensure that India has a workforce capable of driving the next wave of AI innovation. The initiative to equip the nation with supercomputing facilities boasting over 34000 GPUs represents a significant milestone, underlining the commitment to providing the necessary technological infrastructure for AI advancement in India.
Challenges And Future Prospects
Despite the impressive acceleration in India’s AI capabilities, several challenges remain. One significant hurdle is the high cost associated with acquiring and maintaining cutting-edge GPU infrastructure. While government initiatives are helping to alleviate this burden, access to affordable GPU resources remains a concern, particularly for smaller start-ups and academic institutions. Overcoming this financial barrier is crucial for democratising access to AI technology and fostering wider participation in the AI revolution. Innovative financing models and resource-sharing initiatives could play a key role in addressing this challenge.

Another challenge lies in bridging the skills gap in advanced AI technologies. While the government is investing in training programs, the demand for skilled AI professionals, especially those with expertise in GPU-accelerated computing, continues to outstrip supply. To address this, India needs to strengthen its educational institutions and curricula to produce a steady stream of highly qualified AI specialists. Furthermore, attracting and retaining top AI talent is essential for maintaining India’s competitive edge in the global AI landscape. Initiatives such as industry-academia partnerships and attractive career opportunities can help to address this talent shortage.

Looking ahead, the future of AI in India is bright, with immense potential for growth and innovation. Continued investment in GPU infrastructure, coupled with strategic initiatives to address the skills gap and promote responsible AI development, will be crucial for realising this potential. As India continues to build its indigenous AI ecosystem, it is well-positioned to become a global leader in AI, driving economic growth, improving public services, and addressing some of the world’s most pressing challenges. The milestone of having over 34000 GPUs is just the beginning of this exciting journey.

June 4, 2025
Maharashtra onion farmers struggle

Maharashtra’s onion farmers are currently grappling with severely depressed prices for their produce. The wholesale markets are flooded with onions, leading to a dramatic price slump. Farmers are reporting that they are unable to recover even their basic input costs, let alone make a profit. The situation is so dire that many are struggling to afford transportation to the market, and some are even abandoning their crops in the fields.
The primary reason for this agricultural crisis is an oversupply of onions in the market. A bumper harvest, coupled with a lack of export demand, has created a glut. The consequences of this oversupply are far-reaching, impacting not only the onion farmers themselves but also the rural economy of Maharashtra. Many farmers are heavily indebted and face mounting financial pressure. This price slump exacerbates existing farmer distress in the region.
Several factors contribute to the oversupply. Improved farming techniques and increased acreage under onion cultivation have led to higher yields. However, infrastructure limitations, such as inadequate storage facilities, mean that a large portion of the harvest is vulnerable to spoilage. This forces farmers to sell their produce quickly, often at rock-bottom prices, further fuelling the price slump and deepening the ongoing agricultural crisis.
Impact Of Weather
The woes of Maharashtra’s onion farmers are compounded by increasingly erratic weather patterns. Unseasonal rains and prolonged dry spells have significantly impacted onion production cycles. These unpredictable weather events lead to both reduced yields and compromised quality, further exacerbating the existing agricultural crisis. Onion crops are particularly vulnerable to variations in temperature and moisture levels, making them susceptible to crop damage caused by climatic anomalies.
Specifically, unseasonal rains during the harvesting period can lead to bulb rot and discoloration, rendering the onions unsuitable for sale in the premium market. This forces farmers to sell their produce at discounted rates, contributing to the already crippling price slump. Conversely, prolonged dry spells can stunt the growth of the onions, leading to smaller bulbs and lower overall yields. This double whammy of adverse weather conditions places immense pressure on onion farmers, pushing many further into debt and deepening farmer distress.
The changing climate presents a long-term challenge to onion cultivation in Maharashtra. Farmers need access to better weather forecasting and advisory services to mitigate the impact of unpredictable weather. Investment in drought-resistant onion varieties and improved irrigation infrastructure is also crucial to ensure the long-term sustainability of onion farming in the region. Without such interventions, the vulnerability of onion farmers to weather-related shocks will only increase, perpetuating the cycle of price volatility and economic hardship.
Government Intervention Needed
To alleviate the ongoing agricultural crisis and farmer distress, decisive government intervention is crucial. A multi-pronged approach is needed to address both the immediate price slump and the long-term challenges facing onion farmers in Maharashtra. One immediate step would be the implementation of a price stabilisation scheme to ensure that farmers receive a minimum support price for their produce. This would provide a safety net and prevent them from being forced to sell their onions at a loss.
Beyond immediate relief, investment in infrastructure is essential. This includes expanding storage capacity to reduce post-harvest losses due to spoilage. Modern, climate-controlled storage facilities can significantly extend the shelf life of onions, allowing farmers to sell their produce at more favourable times and avoid being forced to sell during periods of oversupply. Improved transportation networks are also vital to ensure that onions can be moved quickly and efficiently from farms to markets, both domestically and internationally.
Furthermore, the government should actively promote onion exports to diversify markets and reduce reliance on domestic consumption. This requires negotiating favourable trade agreements with other countries and providing incentives to exporters. Supporting research and development to develop drought-resistant onion varieties and improve farming techniques is also crucial for long-term sustainability. Finally, access to affordable credit and insurance schemes can help onion farmers manage risk and cope with unexpected losses due to unseasonal rains or crop damage. These measures can help prevent future price slump.

May 26, 2025
Reliance general insurance posts profit surge

Reliance general insurance posts profit surge

Reliance General Insurance’s significant profit surge is underpinned by a combination of strategic initiatives and favourable market conditions. Prudent underwriting practices have played a crucial role, enabling the company to effectively manage risks and minimise claim payouts. This disciplined approach has directly contributed to improved profitability.

Furthermore, a focus on operational efficiency has streamlined processes and reduced overhead costs. By optimising resource allocation and leveraging technology, Reliance General Insurance has enhanced its overall cost-effectiveness. This efficiency gain translates into a stronger bottom line, bolstering the company’s financial performance.

Another key driver is the company’s diversified product portfolio, catering to a wide range of customer needs within the insurance industry. This broad offering allows Reliance General Insurance to tap into various market segments and mitigate risks associated with over-reliance on any single product line. The diversified approach strengthens revenue streams and contributes to sustainable growth.
Financial Performance
Reliance General Insurance demonstrated robust financial health in the reported period. The company’s ability to translate underwriting discipline and operational efficiencies into tangible financial gains is evident in its latest financial results. This performance underscores the effectiveness of its strategic initiatives and its adaptability within the dynamic insurance industry.

A key highlight is the significant increase in profit after tax. This substantial growth reflects the company’s success in managing expenses, optimising investment returns, and capitalising on favourable market trends. The improved profitability strengthens Reliance General Insurance’s financial position and provides a solid foundation for future expansion.

The company’s strong financial performance is further evidenced by its healthy solvency ratio, indicating its ability to meet its financial obligations and withstand potential shocks in the market. Prudent capital management and effective risk mitigation strategies have contributed to this financial stability. Reliance General Insurance is well-positioned to navigate future challenges and capitalize on emerging opportunities in FY25. It reported a profit of ₹315 crore.
Future Outlook
Looking ahead, Reliance General Insurance is poised to build upon its recent successes and further solidify its position within the insurance industry. The company plans to continue investing in technology and innovation to enhance customer experience and improve operational efficiency. Digital transformation remains a key priority, with initiatives focused on streamlining processes, personalising customer interactions, and developing new digital products and services.

Reliance General Insurance aims to expand its market reach by targeting underserved segments and forging strategic partnerships. This expansion strategy involves exploring new distribution channels, developing tailored insurance solutions for specific customer groups, and leveraging data analytics to identify emerging opportunities. The company also plans to strengthen its presence in key geographic markets, both domestically and internationally.

The company is committed to maintaining its disciplined underwriting practices and prudent risk management approach. This commitment involves continuously refining risk assessment models, enhancing fraud detection capabilities, and strengthening internal controls. Reliance General Insurance will remain vigilant in monitoring market trends and adapting its strategies to mitigate potential risks and capitalise on emerging opportunities. The aim is to sustain the growth in profit after tax, building on the positive financial results of FY25, where it reported a profit of ₹315 crore.

Furthermore, Reliance General Insurance recognises the importance of sustainability and responsible business practices. The company is committed to integrating environmental, social, and governance (ESG) factors into its operations and investment decisions. This commitment involves promoting sustainable insurance products, supporting community development initiatives, and adhering to the highest ethical standards. Reliance General Insurance believes that sustainable business practices are essential for long-term value creation and building trust with stakeholders.

May 26, 2025