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Government Strategy to Boost Manufacturing and Services in India

Government Strategy to Boost Manufacturing and Services in India

Union Finance Minister Nirmala Sitharaman unveiled the government’s comprehensive plan on Saturday to transform India into a hub for manufacturing and services, aiming not only to cater to the domestic market but also to bolster exports.
Responding to inquiries about Elon Musk’s postponed meeting with Prime Minister Narendra Modi, Sitharaman emphasized the government’s commitment to attracting investments through tailored policies. “We want manufacturers and investors to come and produce not just for India but also for exports,” she affirmed. “When big companies express interest in India, we will strive to create an attractive environment for them to invest.”
Highlighting the government’s proactive stance, Sitharaman asserted that India’s policies have been instrumental, especially amid concerns about diversifying from China. She underscored the efforts to make India a favorable destination for manufacturing and services.
Regarding inflation, Sitharaman noted that it remained within the tolerance band during the Modi government, contrasting with the double-digit inflation prevalent before 2014. “We have emerged as the world’s fifth-largest economy through hard work, and we are confident about reaching the third position in the next two to two-and-a-half years,” she added.
Addressing employment concerns, Sitharaman acknowledged data limitations but highlighted initiatives like government job creation through the Rozgar Mela. She also discussed the rule requiring larger companies to pay Micro, Small, and Medium Enterprises (MSMEs) within 45 days, clarifying that tax treatment remains unchanged.
Responding to queries about the Indian rupee’s depreciation against the US dollar, Sitharaman attributed the fluctuation to global uncertainties and oil supply disruptions from the Middle East.
In her address to industry leaders from Gujarat on ‘Viksit Bharat -2047’, Sitharaman commended the state’s significant contributions to the Production Linked Incentive (PLI) scheme, particularly in semiconductor manufacturing. She highlighted Gujarat’s position in attracting foreign direct investment (FDI) in manufacturing and emphasized the role of the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar in propelling India’s financial services sector.
Sitharaman’s remarks underscored the government’s commitment to fostering a conducive environment for economic growth, positioning India as a leading destination for manufacturing and services in the global market.

Originally posted on : https://www.business-standard.com/economy/news/govt-aims-to-make-india-attractive-for-manufacturing-services-sitharaman-124042000463_1.html

April 22, 2024
India’s Economic Resurgence

India’s Economic Resurgence: A Lesson for Harvard Business School

Finance Minister Nirmala Sitharaman highlighted India’s remarkable economic turnaround, particularly in the banking sector, since 2014, suggesting it as a case study worthy of the Harvard Business School. Speaking at the Gujarat Chambers of Commerce and Industry (GCCI) in Ahmedabad on the theme “Vikshit Bharat 2047,” Sitharaman praised the transformation in India’s banking landscape and the governmental reforms undertaken post-2014.
Sitharaman outlined the challenges faced by Indian banks, notably the twin balance sheet problem in 2014, which burdened them with non-performing assets (NPAs) and hampered lending to businesses. Drawing parallels with the collapse of the Silicon Valley bank in the US, she commended Indian banks’ resilience during the pandemic and their adept management of mergers for stability.
Despite hurdles like merger-related issues and liquidity challenges, Sitharaman expressed confidence in India’s future, envisioning a prosperous “Vikshit Bharat” by 2047 through sustained collective efforts. She emphasized the pivotal role of stakeholders in achieving this vision, underlining the government’s commitment to driving growth and development.
The minister contrasted India’s economic resilience with challenges faced by Western nations in post-COVID bank management, reinforcing the significance of continued efforts to maintain bank health and stability in India’s growth trajectory.

Originally posted on: https://economictimes.indiatimes.com/news/economy/policy/restoration-of-indian-economy-since-2014-a-case-study-for-harvard-says-nirmala-sitharaman/articleshow/109453316.cms?from=mdr

April 22, 2024
DRDO Announces Successful Flight Testing of Indigenous Technology Cruise Missile

DRDO Announces Successful Flight Testing of Indigenous Technology Cruise Missile

India achieved a significant milestone on Thursday with the successful flight testing of the Indigenous Technology Cruise Missile (ITCM) from the Integrated Test Range at Chandipur, located off the coast of Odisha, according to the Defense Research and Development Organization (DRDO).
During the test, all subsystems of the missile performed as expected, marking a significant advancement in indigenous defense technology.
Defense Minister Rajnath Singh commended DRDO for the flawless test flight of the ITCM, highlighting the importance of developing indigenous long-range subsonic cruise missiles powered by homegrown propulsion systems in advancing India’s defense research and development.
DRDO reported that the missile’s performance was closely monitored by a range of sensors, including radar and Electro-Optical Tracking System (EOTS), strategically positioned by the Integrated Test Range to ensure comprehensive coverage of the missile’s flight trajectory.
The flight of the missile was further observed from an Indian Air Force Su-30-Mk-I aircraft, providing additional data and insights into its performance.
The missile successfully followed its intended path using waypoint navigation and demonstrated exceptional low-altitude sea-skimming flight capabilities. This test flight also validated the reliability of the indigenous propulsion system developed by the Gas Turbine Research Establishment (GTRE) in Bengaluru, as stated in a release by DRDO.
The development of the missile was spearheaded by the Aeronautical Development Establishment, a DRDO laboratory based in Bengaluru, with contributions from various other laboratories and Indian industries.
The successful test was attended by senior scientists from multiple DRDO laboratories, as well as representatives from the production partner, underscoring the collaborative effort and expertise involved in achieving this milestone in indigenous defense technology.

April 19, 2024
TRAI Unveils Guidelines for Regulatory Sandboxing

TRAI Unveils Guidelines for Regulatory Sandboxing in the Digital Communication Sector

The Telecom Regulatory Authority of India (TRAI) has proposed the establishment of a regulatory sandbox to foster innovative technologies in the digital communication sector. This recommendation follows the release of a consultation paper last year, which sought feedback on the regulatory sandbox framework. Notably, Bharti Airtel and Reliance Jio had contested the necessity of sandboxing, citing existing mechanisms within the telecom sector for product and service testing.
Under the proposed framework outlined in the consultation paper, any licensed service provider meeting specified conditions will be eligible to participate in the regulatory sandbox as principal applicants. Additionally, Indian entities exclusively are eligible to apply for participation, a suggestion put forth by Vodafone Idea (Vi) in response to the consultation paper.
Furthermore, if an entity fails to secure consent from a telecom operator or if the product does not require association with a telco, direct application to the sandbox is permissible. However, such applications must demonstrate efforts made to collaborate with a telco.

Eligibility Criteria for Sandbox Participants:

1. Pre-testing Requirement: Applicants must subject their product to limited testing before applying for the sandbox.
2. Regulatory Exemptions: Applicants must specify the regulatory exemptions required for sandbox testing, along with the anticipated testing period.
3. Institutional Mechanism: For exemptions beyond the Department of Telecommunications (DoT) jurisdiction, the DoT will establish an institutional mechanism to facilitate the process within 60 days.
4. Resource Specification: Participants must clearly outline the resources or facilitations sought during the sandboxing process.
5. Risk Management: Products being tested must have a comprehensive risk management strategy in place.
6. Consumer Protection: Participants must prioritize consumer interests and ensure compliance with the Digital Personal Data Protection Act (DPDP 2023).
7. Testing Parameters: Test parameters, control boundaries, milestones, and anticipated outcomes must be defined, alongside mechanisms for monitoring and evaluating the testing process.

Removal of Minimum Net Worth Requirement:

The requirement of a minimum net worth of Rs. 25 lakhs has been eliminated from the eligibility criteria, as it was deemed counterproductive to innovation by stakeholders.

Application Approval Process:

1. Application Stage: The DoT will review applications within 7 days and provide feedback on any shortcomings. Applicants can rectify these shortcomings within 10 days, with the DoT reviewing the complete application within 30 days.
2. Evaluation Stage: Applications will be evaluated based on eligibility criteria. The DoT will collaborate with applicants to determine specific regulatory exemptions and conditions. Approval will be granted if the applicant meets regulatory requirements.
3. Testing Stage: A designated officer will oversee sandbox testing, with any material changes requiring prior approval from the DoT.

Oversight and Reporting:

The National Telecommunications Institute for Policy Research, Innovation, and Training (NTIPRIT) will oversee the sandbox, with representatives from the Telecom Engineering Centre (TEC) and academic institutions as necessary. Participants must establish reporting and monitoring mechanisms, including periodic reports and a comprehensive report post-sandbox testing.

Funding:

The Digital Bharat Nidhi under the Telecommunication Act 2023 will provide financial support for innovation in the telecom sector. The DoT may consider funding for sandboxed products, with preference given to proposals not requiring funding.

Originally posted on: https://www.medianama.com/2024/04/223-trai-recommendations-digital-communication-sandbox/

April 19, 2024
India’s Economy Set to Grow by 6.5% in 2024

India’s Economy Set to Grow by 6.5% in 2024, Reports UNCTAD

In a recent report released by the United Nations Conference on Trade and Development (UNCTAD), India’s economic trajectory continues to be a beacon of growth, with projections indicating a robust expansion of 6.5% in 2024. The report, unveiled on Tuesday, highlights India’s resilience amid global economic challenges, positioning it as the fastest-growing major economy worldwide.
According to UNCTAD’s findings, India experienced a commendable growth rate of 6.7% in 2023, fueled by robust public investment and the vibrancy of its services sector. Factors such as strong local demand for consumer services and robust external demand for business services exports contributed significantly to India’s economic momentum. The report underscores the pivotal role of these factors in sustaining India’s growth trajectory in the coming year.
Furthermore, UNCTAD’s report sheds light on the increasing trend of multinational corporations (MNCs) redirecting their manufacturing operations to India as part of their supply chain diversification strategies. This strategic move by MNCs is anticipated to bolster Indian exports, thereby further bolstering the nation’s economic outlook for 2024. The report draws parallels with China, highlighting India’s emergence as an attractive manufacturing base for global corporations.
Last week, the “2024 Financing for Sustainable Development Report: Financing for Development at a Crossroads,” unveiled by the UN, underscored the resilience of investment in South Asia, particularly in India. The report emphasized India’s growing appeal among multinational corporations seeking alternative manufacturing bases in the wake of supply chain diversification efforts.
Looking ahead, the UNCTAD report anticipates the Reserve Bank of India to maintain stable interest rates in the near term, with robust public investment offsetting restrained public consumption spending. While India’s economic outlook remains positive, the report acknowledges more subdued growth in other Southern Asian countries such as Bangladesh, Pakistan, and Sri Lanka, which are currently under IMF programs.
Globally, economic growth is projected to reach 2.6% in 2024, a slight deceleration from the previous year. The report highlights the resilience of major economies such as China, India, Indonesia, and the United States, among others, in navigating financial uncertainties. However, it also cautions against overlooking pressing challenges such as trade disruptions, climate change, low growth, under-investment, and inequalities, which demand urgent attention.
In conclusion, UNCTAD’s report underscores India’s steadfast economic resilience and its pivotal role in driving global growth amidst prevailing uncertainties. As India continues on its growth trajectory, sustained investment, policy reforms, and strategic initiatives will be crucial in unlocking the nation’s full economic potential in the years to come.

Originally posted on: https://www.moneycontrol.com/news/business/economy/indian-economy-projected-to-grow-6-5-in-2024-unctad-12655801.html

April 18, 2024
Bridging India’s Digital Frontier

Bridging India’s Digital Frontier: A Exploration of 5G and Fixed Wireless Access with Nitin Bansal, Head of Ericsson India

In an era where connectivity is paramount, India stands on the cusp of a digital revolution driven by the convergence of 5G and Fixed Wireless Access (FWA). As the nation marches towards a more connected future, the integration of these transformative technologies promises to unlock unparalleled innovation, inclusivity, and economic prosperity. In this exclusive news article, we take a deep dive into the dynamics of India’s digital landscape, with insights from Nitin Bansal, Head of Ericsson India and Head of Network Solutions for Southeast Asia, Oceania & India.
Chapter 1: The 5G Revolution in India
India’s journey into the realm of 5G has been nothing short of extraordinary. Within just 18 months, the nation has emerged as a global frontrunner in 5G proliferation, with services extending to 738 districts. This rapid deployment, propelled by Indian telcos’ efforts in deploying over 4.25 lakh Base Transceiver Stations (BTS), has positioned India among the top 15 markets globally for 5G media download speeds, as validated by Ookla. The Ericsson Mobility Report underscores India’s insatiable appetite for data, with smartphone users averaging 31GB per month by 2023. Projections indicate a surge in 5G subscriptions, expected to reach 68% within the next five years, with data traffic per smartphone projected to soar to 75GB per month by 2029.
Chapter 2: Unveiling the Promise of 5G Use Cases
Beyond its speed capabilities, 5G serves as a harbinger of economic revitalization, fostering innovation and growth through transformative use cases such as Enhanced Mobile Broadband (EMBB) and Fixed Wireless Access (FWA). These applications not only enhance consumers’ mobile data experiences but also pave the way for new industry paradigms. From AR VR shopping to cloud gaming and 360-degree live streaming, 5G unleashes a spectrum of possibilities, redefining consumer experiences and industry landscapes alike.
Chapter 3: Fixed Wireless Access: A Catalyst for Digital Inclusion
Fixed Wireless Access (FWA) emerges as a critical enabler in bridging the digital divide, delivering reliable, high-speed internet connectivity to underserved areas in a cost-effective manner. With India’s low fiber penetration, FWA presents a viable solution for extending broadband access to remote regions, eliminating the need for costly physical infrastructure. Ericsson’s FWA handbook 2024 Insights projects a significant uptick in FWA connections worldwide, with India witnessing a surge in FWA deployments by operators such as JioFiber and Airtel Xstream Fibre. Recent demonstrations showcasing peak speeds of 4.7Gbps on mmWave technology underscore FWA’s potential in expanding connectivity across India’s diverse landscape.
Chapter 4: FWA and ARPU Growth for Indian Telcos
Fixed Wireless Access (FWA) not only bridges connectivity gaps but also contributes to Average Revenue Per User (ARPU) growth for Indian operators. By extending broadband coverage to rural areas and offering bundled services, operators can enhance ARPU and drive revenue growth. Ericsson’s report, ‘Capturing the 5G FWA opportunity: A household view,’ highlights the increasing adoption of FWA as a full replacement for previous connectivity solutions, with households opting for FWA for its higher speed and reliability. This trend, coupled with the projected growth in fixed communication services revenue, underscores FWA’s potential as a revenue driver for operators in India.
Chapter 5: Global Perspectives on FWA Deployment
Governments worldwide are accelerating FWA deployment to foster economic growth and bridge connectivity divides. Norway’s District Development model incentivizes operators to provide high-speed connectivity to underserved areas, while Oman has witnessed a fourfold surge in FWA subscribers since 2020. FWA adoption is gaining momentum globally, with approximately 60% of Ericsson’s live 5G networks offering commercial FWA services. Speed-based tariff plans and gigabit-level speeds position FWA as a key revenue driver for service providers worldwide.
Chapter 6: Harnessing the Potential of E&V Bands in India
India’s fiber connectivity constraints can be addressed by leveraging the E&V bands (71-76 GHz and 81-86 GHz) to alleviate network congestion and enhance customer satisfaction. These bands offer high-speed data transmission capabilities, making them ideal for high-capacity backhaul and last-mile connectivity solutions. By harnessing the potential of the E&V bands, Indian telecom companies can efficiently expand their networks, catering to both urban and rural areas and bridging connectivity gaps across the country.
Chapter 7: Strategic Imperatives for Telcos in Spectrum Auctions
The upcoming spectrum auctions in June 2024 present telcos with an opportunity to bolster connectivity nationwide. With eight bands on offer, including 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz, telcos have a diverse range of frequencies to optimize their networks. These bands cater to different use cases, from providing widespread coverage in rural areas to supporting high-speed data services in urban regions. By acquiring spectrum across these bands, telcos can enhance network performance, and capacity, and meet the growing demands for connectivity and data services across India.

Conclusion: Paving the Path for India’s Connected Future
As India embarks on its digital journey, the convergence of 5G and Fixed Wireless Access (FWA) emerges as a linchpin for realizing the nation’s vision of a connected future. With unparalleled speed, reliability, and inclusivity, these transformative technologies hold the promise of unlocking new possibilities and driving socio-economic growth. By harnessing the power of 5G and FWA, India is poised to redefine telecommunications, paving the path for a brighter, more connected tomorrow.

Originally posted on: https://www.businesstoday.in/technology/news/story/bridging-indias-digital-horizon-a-deep-dive-into-5g-and-fixed-wireless-access-with-ericsson-india-head-nitin-bansal-425852-2024-04-17

April 18, 2024
How essential is digitization
How essential is digitisation for MSMEs?
In today’s digital world, embracing digitisation is no longer optional for MSMEs (Micro, Small and Medium Enterprises). It’s a key driver for growth, efficiency, and staying competitive. Digitisation has been is specifically helping MSMEs improve customer management in many ways:

Enhanced Communication: Digital tools like social media platforms, messaging apps, and email marketing allow MSMEs to connect with customers more easily and quickly. This two-way communication fosters better relationships and faster resolution of issues.
Data-Driven Decisions: Digitisation facilitates the collection and analysis of customer data. This empowers MSMEs to understand customer behavior, preferences, and buying habits. Armed with these insights, MSMEs can personalize their offerings and marketing strategies, leading to higher customer satisfaction.
Improved Efficiency: Digitalisation streamlines processes like order tracking, invoicing, and customer service. Many MSMEs are adopting Customer Relationship Management (CRM) software to manage customer interactions and automate repetitive tasks. This frees up valuable time and resources to focus on delivering exceptional customer service.
Global Reach: Digital platforms like e-commerce marketplaces and social media enable MSMEs to reach a wider audience, even beyond geographical limitations. This expands their customer base and opens doors to new markets.
Personalized Experiences: By leveraging customer data, MSMEs can tailor their communication and offerings to individual customer needs. This could involve targeted promotions, loyalty programs, or personalized recommendations
Read more here: https://economictimes.indiatimes.com/small-biz/sme-sector/how-digitisation-is-helping-msmes-improve-customer-management/articleshow/109302551.cms
April 17, 2024
AMD Reveals New Series of AI-Enabled Semiconductors

AMD Reveals New Series of AI-Enabled Semiconductors for Business PCs

Advanced Micro Devices (AMD) has announced the launch of a new range of semiconductors designed for artificial intelligence (AI)-enabled business laptops and desktops. This move signifies the chip designer’s strategic expansion into the lucrative “AI PC” market.
According to a press release from AMD, these chips are slated to be integrated into platforms from HP and Lenovo, with availability expected in the second quarter of 2024.
AI-enabled PCs possess the capability to execute large-language models and applications powered by AI technology directly on the device, without relying on cloud computing. AMD’s latest offerings include the Ryzen PRO 8040 Series tailored for business laptops and mobile workstations, along with the AMD Ryzen PRO 8000 Series designed for desktop use by business professionals.
Following this announcement, AMD’s shares surged by more than 2% during early trading.
Industry experts anticipate a potential revival in the PC market driven by the introduction of AI-enabled PCs, as consumers seek to upgrade their systems with enhanced capabilities. The rise of generative AI technology has fueled a significant demand for advanced semiconductors capable of developing and executing complex AI programs.
In the competitive landscape of AI PCs, AMD faces formidable rivals such as Intel and Nvidia, renowned for its leadership in graphics processing units (GPUs). AMD had previously introduced the Ryzen 8000G Series of desktop chips in January, catering to the demanding workloads associated with AI-driven tasks.
Coinciding with AMD’s announcement, Nvidia unveiled its own lineup of AI PC chips, branded as the “GeForce RTX SUPER” desktop GPUs. The company disclosed partnerships with major manufacturers including Acer, ASUS, Dell Technologies, HP, Lenovo, and Samsung for the release of AI laptops featuring Nvidia’s technology.
Intel also made headlines in January, revealing its ambitious plan to ship approximately 40 million AI PCs in 2024 alone, underscoring the intense competition and high stakes in the rapidly evolving AI PC market.

Originally posted on: https://indianexpress.com/article/technology/artificial-intelligence/amd-introduces-ai-chips-for-business-laptops-and-desktops-9274733/

April 17, 2024
IMF Boosts India’s Growth Outlook

IMF boosts India’s growth projection to 6.8% in 2024

The International Monetary Fund (IMF) has upgraded its growth forecast for India, projecting a GDP growth rate of 6.8% for the current year, up from its previous estimate of 6.5% in January. This upward revision is attributed to bullish domestic demand conditions and the country’s expanding working-age population.
India maintains its position as the world’s fastest-growing economy, surpassing China’s growth projection of 4.6% for the same period.
According to the latest edition of the World Economic Outlook released by the IMF ahead of its annual spring meetings, India’s robust growth is expected to continue at 6.8% in 2024 and 6.5% in 2025. This resilience is driven by sustained domestic demand and a growing working-age population.
Meanwhile, growth in emerging and developing Asia is anticipated to moderate slightly, from an estimated 5.6% in 2023 to 5.2% in 2024 and 4.9% in 2025, reflecting a minor upward adjustment compared to the January 2024 update.
The IMF’s January update had initially projected a 6.5% growth rate for India in 2024. The current forecast for 2024 is revised upward by 0.1 percentage points from the January update and by 0.3 percentage points from the October 2023 report.
Pierre-Olivier Gourinchas, the IMF’s chief economist, emphasized the importance of policymakers focusing on measures to enhance economic resilience, such as strengthening government finances and revitalizing growth prospects. Despite global economic challenges, including supply chain disruptions and geopolitical tensions, Gourinchas noted that the global economy remains resilient, with steady growth and moderating inflation.
While the US economy has surpassed its pre-pandemic trend, Gourinchas highlighted potential challenges for low-income developing countries still grappling with the aftermath of the pandemic and rising costs of living. He also pointed out lingering effects on China’s economy due to the downturn in its property sector and emphasized the need to address domestic demand issues to avoid exacerbating trade tensions.

Originally posted on: https://indianexpress.com/article/business/economy/imf-india-growth-projection-2024-9274147/

April 17, 2024
Google’s Stand Against California

Google’s Stand Against California Legislation Sparks Debate Over News Compensation

Google is taking action in response to proposed legislation in California, which would require big tech firms to compensate news outlets for their content. The tech giant announced on Friday, via a blog post, that it is removing links to California news websites as a “test” to assess the potential impact of the legislation on user experience. This move is expected to affect only a small percentage of California users.
The proposed legislation, known as the California Journalism Preservation Act, is yet to be heard by the state’s Senate Judiciary Committee. If passed, it would mandate digital platforms like Google and Meta to pay a “journalism usage fee” to eligible news outlets when their content is used alongside digital advertisements.
The bill has garnered attention amid concerns that news aggregation practices by tech companies may divert users away from news websites. Lawmakers and proponents argue that while tech giants benefit financially from sharing content from small and local news publishers, these publishers do not receive adequate compensation.
Responding to Google’s action, California State Senate President Pro-Tempore Mike McGuire criticized it as “bullying” and an “abuse of power,” emphasizing the importance of news in keeping the public informed, especially during emergencies.
Google has opposed similar legislation in other countries, including Canada and Australia. In these cases, the company threatened to remove links to news content from its platforms if the laws were enacted as proposed. However, Google eventually reached agreements with news publishers in both countries, avoiding the removal of links.
Critics argue that Google’s actions suppress access to critical information and underscore the need for legislation to ensure fair compensation for news content. However, Google maintains that the proposed legislation would create uncertainty for businesses and has raised concerns about its feasibility.
As discussions around the legislation continue, the implications for the future of news distribution and the relationship between tech companies and publishers remain at the forefront of the debate.

Originally posted on: https://www.wral.com/story/google-removes-links-to-california-news-sites-citing-proposed-state-law-requiring-payment-to-publishers/21380225/

April 16, 2024