businesstoday.

in

OC
September 5, 2021 `100

AJIT MOHAN I ANIL AGARWAL I ASHU SUYASH I BHARGAV DASGUPTA I CHANGPENG ZHAO I DEEPAK BAGLA I DILIP SHANGHVI
K. SUBRAMANIAN I K.V. KAMATH I KEKI MISTRY I MANISH SABHARWAL I NIKHIL KAMATH I NITIN BANSAL I RITESH AGARWAL I ROHIT BHAYANA
RONNIE SCREWVALA I S.N. SUBRAHMANYAN I SANJAY GUPTA I SUMANT SINHA I SUNIL MATHUR I SURESH NARAYANAN
From the Editor
Chronicling
the India Story
T hree decades is a long time. For those of us who were in jour-
nalism thirty years ago, the changes India has witnessed in the
business and economic environment over the years have been
nothing short of dramatic. I remember, as cub reporters on the stock
market beat, we would have to trudge every day to the crowded stock
exchange to take a peek at the latest notices on the exchange notice
boards, and would return to office thrilled if there was something big
enough to warrant a story. Those were the days of open outcry trading,
when the Securities and Exchange Board of India didn’t have statutory
powers, and the brokers were often at loggerheads with an institution
struggling to get regulatory teeth. That was then. Today, people trade at
the click of a button, and the regulator is busy keeping a close watch on
the markets as trading volumes reach stratospheric levels. For perspec-
tive, the benchmark BSE Sensex, which was at 999 thirty years ago, is at
55,000-plus now.
And that’s just the markets. Much has been written about the dis-
tance India has travelled from the time Manmohan Singh, the then fi-
nance minister, liberalised the Indian economy in July 1991. Ever since
Business Today was launched in January 1992, we have been witness to
the momentous changes in the Indian economy and the corporate sec-
tor, bringing you stories of the biggest policy decisions and boardroom
battles, capturing the essence of the India story as it unfolded before
our eyes. Whether it is the dramatic changes in banking, the cleaning
up of corporate balance sheets, the scorching pace of growth in mobile
telephony, or the emergence of the new digital ecosystem powered by
cheap data prices and smartphones, Business Today has been at the fore-
front of getting you these stories as they developed. Now, as we count
down to our 30th Anniversary, we are proud to bring you this special
issue—the first of two we’ve planned this time—which seeks to take a
look at the future, and how India can take its rightful place as an eco-
nomic powerhouse in the new global order. And that’s why we invited a
galaxy of the finest minds to write on the theme ‘The Next India Oppor-
tunity’. As India celebrates its 75th Independence Day, there’s no better
time than now to look ahead.
We are in a new India. An India defined by the power of enterprise
and ambition, where even the most ordinary Indian is unafraid to
dream of a better life and knows it can well become a reality. The digital
ecosystem has democratised India like never before. Wealth creation is
no longer a bad word. As Chief Economic Adviser Krishnamurthy Sub-
ramanian writes in his essay, “the change towards embracing wealth
creation is a durable one because the polity now recognises that ethical
wealth creation has been part of India’s DNA for millennia. The idea of
ethical wealth creation as a noble human pursuit is rooted in India’s old
and rich tradition ranging from Kautilya’s Arthashastra in the North to
Thiruvalluvar’s Thirukural down South.”
This is an India whose time has come.
sourav.majumdar@aajtak.com
@TheSouravM
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 September 5, 2021 Cover by
Volume 30, Number 18 ANIRBAN GHOSH

34

THE NEXT INDIA

OPPORTUNITY
Rural Will Drive New Mining Local Go for a Vibrant Bond
Biz Models Demand Market
By Ajit Mohan By Anil Agarwal By Ashu Suyash
Vice President and Managing Founder-Chairman, Vedanta Managing
Director, Facebook India Resources Ltd Director & CEO, CRISIL Ltd
Pg. 16 Pg. 22 Pg. 28
 Contents

Insurers to Turn Fintech We Will Get Much More Energy Will See
Players Out of Work Biggest Disruption
8
By Bhargav Dasgupta By Manish Sabharwal By S.N. Subrahmanyan
MD and CEO, Executive Vice Chairman, CEO & MD,
ICICI Lombard General Teamlease Services Larsen & Toubro
Insurance Pg. 82 Pg. 122
The Point
Pg. 34
Going Strong @ 30
Calling Capital India Can Shape In 1991, India faced its worst
Crypto Can Build Billion theFuture economic crisis and was on
Dollar Markets By NIkhil Kamath, of the internet
Co-founder, Zerodha and True the brink of a sovereign de-
By Changpeng Zhao Beacon By Sanjay Gupta fault. The three decades after
Founder & CEO, Binance Pg. 89 Country Head that have seen an unprec-
Pg. 44 & VP, edented surge in growth
India Google
5G: Let the Pg. 126
Making a Global Impact Change Begin
By Deepak Bagla, By Nitin Bansal Towards Greener
CEO and MD, Invest India Managing Director, India Pastures
Pg. 52 Head-Networks, Market Area
South East Asia, Oceania and Sumant Sinha
India,Ericsson Founder Chairman & MD,
Pg. 92 ReNew Power
Target: A $120
Billion Industry Pg. 130

By Dilip Shanghvi The Next Chapter in the

Managing Director, Start-up Growth Story
Sun Pharma
Pg. 58
The Tectonic Shift in
India’s Economic Policy
By K. Subramanian
Chief Economic Adviser,
Government of India
Pg. 62
Co-founder and Managing
Digital Super Cycle Will
Power Us Ahead
By K.V. Kamath
Former Chairman, New
Development Bank of BRICs
Countries
Pg.70
Low-cost Housing to
Drive Growth
By Keki Mistry
Vice Chairman & CEO,
HDFC Ltd
Pg. 76
businesstoday.in
Scripting a Smart
Growth Story
By Ritesh Agarwal
Founder & Group CEO, Sunil Mathur
OYO MD & CEO,
Pg. 110 Siemens India
Pg. 134 148
Building
a 'Just in Case' Rurban
Supply Chain Approach Will
Money Today
Yield Riches
By Rohit Bhayana
By Suresh Narayanan Taxing Blues
Partner, Lumis Partners Chairman and Unable to file ITR? Take
Managing Director, screenshots of errors, send mails
Pg. 114
Nestlé India to assessing officer to avoid
Pg. 138 penal proceedings
Ready, Click, Learn
Ronnie Screwvala Going Back
Chairperson & in Time
Co-Founder, upGrad
Thirty years is a
Pg. 118
lifetime in the world 152
of business.
These photos from our
archives chronicle some of Network
the biggest moments
in that journey
Pg. 142 ITC’s Tech Enthusiast
Technology has always
fascinated ITC Chairman and
MD Sanjiv Puri, right from the
time when he was asked by his
mentor Y.C. Deveshwar to build
an ecommerce website

STAY CONNECTED WITH US ON

www.facebook.com/BusinessToday@BT_India 154

An Feature
Best Advice I Ever Got
From time to time, you will see pages titled “Focus”, “An “Solutions are in
Impact Feature”, or “Advertorial” in Business Today. These the Marketplace and
are no different from an advertisement and the magazine’s
editorial staff is not involved in their creation in any way. Not in the Boardroom”
Kalpesh R. Parmar

6 Business Today 5 September 2021

The Point 10
4. G
ROS
S FI
S CAL DEF
ICIT

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GOING LD
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8

STRONG GROS
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2020-
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1991-92
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1 GDP On A 2GVA Sees a 3 &4

Loosened
Fast Track Sharp Spike Purse Strings
The gross domestic Gross value The fiscal deficit is
product (GDP) added — output, estimated to be `15.07
was `135.13 lakh crore less intermediate lakh crore, or 9.3 per
in FY21, registering a consumption — was cent of GDP, versus a
CAGR of 5.7 `124.53 lakh crore in deficit of `0.36 lakh
per cent in the last FY21, rising 432 per crore, or 5.5 per cent of
three decades, cent from FY92. Farm GDP, in FY92. It has
from `25.41 lakh crore sector's share halved been higher than 4 per
in FY92 during the period cent during most years

14 Business Today 29 December 2019

 IN 1991, INDIA FACED ITS
WORST ECONOMIC CRISIS
5. PER
AND WAS ON THE BRINK
CAP OF A SOVEREIGN DEFAULT.
ITA G
D P 20
0 TODAY, IT IS BATTLING THE
(C ur r e
n t p ri c DEBILITATING EFFECTS
es, `
'00 0 16 0 OF A GLOBAL PANDEMIC.
)
THE INTERVENING THREE
DECADES, HOWEVER, HAVE
12 0
SEEN AN UNPRECEDENTED
SURGE IN GROWTH AND
80 PROSPERITY
6. 35
GR By SHIVANI SHARMA
40 OS
1991-9 FO SC 28
2 RM AP Graphics by TANMOY
202 (% AT IT CHAKRABORTY
AL
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1 GD N 21
P)
19

7.
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($ '0 0 0

EIGN INV
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Mil lion)

MENTSE ST
2020-21
0

20

40

60

80

100

5 Per-capita 6 Investment 7 Private 8Foreign

Income up Rate Tops 30% Consumption Funds Make Big
18 Times of GDP up Four-Fold India Bets
India’s per-capita GDP Gross fixed capital Private consumption Foreign investment
growth soared 1,783 formation as a has risen more than inflows have
per cent to `1.45 lakh percentage of GDP, four-fold in three risen from $129 million in
in FY21. The only dip which is considered a decades to `75.61 lakh FY92 to nearly $82 billion
was seen in FY21, due rate of investment, has crore in FY21, notching in FY21, growing at a
to the pandemic stayed above a compounded compounded
and the resulting 30 per cent for the annual growth rate of annual growth rate of
lockdown past 14 years 5.1 per cent 24.3 per cent

30 May 2019 Business Today Source: Mospi, CMIE15

 The Point
STOCK MARKETS:
A 30-YEAR STORY
2019 MARCH JAN. 2021
AN EVENTFUL RIDE
NDA wins 2020 Vaccine
The BSE Sensex has risen 55 times in rolled out
second Covid-19
three decades; the key events in India
term triggers
crash

APRIL 1992 2008 2014

Harshad Global NDA wins
Mehta Scam financial with 2017
crisis Narendra GST is 50,000
Modi as PM implemented
JULY 1991 OCT. 1999 2009 40,000
Dr Manmohan Sensex UPA wins
Singh’s budget crosses second 30,000
5,000 points term
20,000

10,000

0
1991 2022
2000 2010 2020

The opening up of
the economy has
`a

brought a windfall
for companies and `20.6
investors alike.
LAKH CRORE
A roundup of the
Revenue of all
long journey listed companies
in FY21, from
By SHIVANI SHARMA `29,000 cr in FY92
Graphics by TANMOY
CHAKRABORTY
The Point

ACTION PACKED
Market Turnover up Almost 17
Times Since 1996-97
THE SIX
2000 SURVIVORS
TURNOVER (` '000 crore) The other 24 companies in
1600 the 1991 Sensex are out of
the benchmark index
1200
Hindustan Unilever
800

400
14.5 2,358.8
0
1996-1997 2020-2021
Larsen & Toubro

THE GREAT INCOME BOOST 17.78 1,626.65

Profitability has seen a steep jump
Mahindra & Mahindra
25
(`lakh cr)
20 6.75 756.7

15 Nestle India
TOTAL
INCOME
10
NET
5 PROFIT 18,214.25
100.67
0
1996-1997 2020-2021

Reliance Industries

19.63 2,133.3

Tata Steel

102.61 1,446.4

SHARE
PRICE (`)
05-Aug-91
05-Aug-21

Source: BSE
14
 LOOKING
AHEAD
BUSINESS AND ECONOMIC
LEADERS WRITE ON WHAT
INDIA CAN HOPE
TO ACHIEVE OVER THE
COMING YEARS
BY ANAND ADHIKARI
ILLUSTRATION BY ANIRBAN GHOSH

T
hirty years ago, the Indian economy
famously liberalised itself and sailed
into the rough seas of a fast-integrat-
ing global economy. It was a revolu-
tionary move that transformed India
into a serious business destination.
Soon after, another revolution hap-
pened – the advent of Business Today, a
magazine that has led the charts in business content deliv-
ery for three decades, by the chronicling and sharp analysis
of the ebb and flow of India’s economic and corporate life.
From the listing of Infosys on Nasdaq, to the split between
the Ambani brothers, to the multi-billion dollar overseas
acquisitions by Tata and Aditya Birla groups, to the more
recent game-changing policy and taxation reforms such as
GST, RERA and bankruptcy code, Business Today has pre-
sented sharp analyses of India Inc.’s strategic moves and
the government’s policy shifts.
But you probably know all that already. So, let’s tell you
something new. For an economy to flourish, it is important
to look ahead to try and see what’s coming, and to prepare
national economic agendas as well as corporate visions and
strategy. So, at 30, Business Today decided to zoom into The
Next India Opportunity. In this special anniversary issue
— the first of two planned for a year-long celebration — the
best minds in the government and corporate India have
written on what they expect to happen and what should
happen for continued economic and societal growth.
As you flip the pages, you will see why Manish Sabharw-
al, Executive Vice Chairman, TeamLease Services, thinks
that the World of Work will be very different in the future
because we now finally agree that our problem is not jobs
but productivity. Or why K.V. Kamath, who recently com-
pleted his tenure at the New Development Bank, is betting
big on the digital super cycle. Or why Sanjay Gupta, Coun-
try Manager and Vice President (Sales and Operations) of
Google India, says our first priority should be to under-
stand the challenges of Bharat.
You will also see why HDFC Vice-Chairman & CEO
Keki Mistry feels that affordable housing will be the driving
force in the coming decade, and why Zerodha’s Co-found-
er, Nikhil Kamath, who has made equity investing free,
stresses that India must pay heed to its entrepreneurs who
undertake an incredible amount of risk to solve problems.
Find out why Sunil Mathur, Managing Director and Chief
Executive Officer of Siemens, argues that skilled resources
in digital transformation are key to ensuring substantial
and measurable success. And why Dilip Shanghvi, Manag-
ing Director, Sun Pharma, says achieving equitable and sus-
tainable healthcare is of utmost importance for a develop-
ing country like India.
You will find all these answers in this issue, and much
more, but we don’t want to be a killjoy. Go on, flip the page,
and see for yourself.

5 September 2021 Business Today 15

 THE NEXT INDIA OPPORTUNITY

RURAL
WILL DRIVE
NEW BIZ
MODELS
BRINGING THE NEXT 30 MILLION
BUSINESSES ONLINE CAN PUT INDIA
ON THE PATH OF EXPLOSIVE
ECONOMIC GROWTH

I
ndia of 2021 is dramatically different
from the India of early 2020, not just be-
cause of the massive health crisis that we’re
facing globally, but equally because of a
generational shift that has happened over
the last one year as a result of an explosive
digital transformation. One of the most vis-
AJIT MOHAN
ible effects of digital adoption has been on VICE PRESIDENT
businesses, both small and large, and con- AND MANAGING
sequently on the Indian economy. We know DIRECTOR,
Sanjiv Puri ,
FACEBOOK INDIA
Chairman and MD, ITC

16
ILLUSTRATIONS BY ANIRBAN GHOSH
that the pandemic has adversely affected
business operations, but it’s also true that
the digital forces unleashed over the last
one year have made the economy more
resilient, created new opportunities for
business growth and are now paving the
way for economic recovery.
Several studies have shown that the economic im-
pact of the second wave of the Covid-19 pandemic in
India was less severe than in the weeks following the
first lockdowns last year. Then, businesses were merely
trying to adjust to a world that had moved online almost
overnight. Over the course of the year, they discovered
that moving online is not just the need of the hour, but
can also be a transformative opportunity for the future.
With 700 million people on the internet, and a ma-
jority of them coming online in the last four years alone,
India is brimming with new ideas that are just waiting to
be converted into business opportunities — whether it’s
the 63 million businesses or the 150 million farmers who
will be able to connect with each other and their custom-
ers online for the first time in the coming years.
17
 THE NEXT INDIA OPPORTUNITY
As this landscape continues to evolve with new emerg-
ing technologies in fields such as artificial intelligence and
quantum computing, the task ahead would be as much
about bringing the next 600 million people on the internet
as it would be about uplifting the lives of those already con-
nected by offering them solutions that allow for the possi-
bility of a fundamental transformation in their lives.
Our commitment to India runs deep. As an ally for In-
dia’s social and economic transformation, we are focussed
on a few key areas where the Facebook family of apps can
act as a catalyst for shaping the country’s digital future.
Around half of India’s small businesses have already ad-
opted digital, up from 30 per cent before the pandemic,
and the stage is set to bring the next 30 million small busi-
nesses online. Our responsibility would be to reduce the
friction in the experience on both sides — the business and
the consumer — while creating and supporting new and
resilient business models for the future.
THE WORLD’S INNOVATION LAB
Over the last decade, India has been steadily emerging as
one of the largest and most vibrant start-up ecosystems
in the world. As internet access grew, start-ups boomed
across the country. Despite the pandemic, the Indian tech
start-up ecosystem is witnessing a steady growth of 8-10
per cent. Just this year alone, India has produced 16 uni-
corns that have raised more than $11 billion.
The country’s entrepreneurial zeal combined with the
tectonic shifts of the last one year are fuelling new business
models out of India that have the potential to be scaled up
and replicated elsewhere in the world.
Ed-tech, healthcare and gaming are examples of light-
house sectors that have witnessed enormous growth on
the back of digital technologies. Facebook’s ‘Topics and
Trends Report’ for 2020 says conversations around ed-
tech grew nearly 10x on Facebook and Instagram in India
in 2020. This was corroborated by the massive growth in
ed-tech startups across our apps. White Hat Jr., an online
education platform for coding and maths for children,
grew into a $300 million rocket ship in 18 months on the
back of just advertising on Facebook and Instagram. A sub-
stantial growth for White Hat Jr., and several other busi-
nesses, has come on the back of access to global markets
that digital, and more specifically social media, has been
able to unlock.
Gaming is another industry that has received a mas-
sive impetus from digital growth. In the first nine months
of 2020, India rose to the number one spot in mobile game
downloads. This has created an enormous opportunity for
gaming developers in the country, further attracting in-
vestor interest.
18 Business Today 5 September 2021
For us at Facebook, India is the testing ground for
path-breaking ideas and technologies that can fuel the
growth of digital and small businesses in the country.
Many of our products have an India-first lens. It’s the
first country where we have made minority investments
in start-ups. It’s the first where we have built a pioneer-
ing partnership by investing in Jio Platforms. There are
several other compelling models emerging out of India
that have the potential to be scaled up globally. Insta-
gram Reels was first tested in India, and today, six mil-
lion Reels are produced every day. Payments on What-
sApp is another exciting example of how we used lessons
from the market to create a feature that is driving finan-
cial inclusion through the government’s Unified Pay-
ments Interface.
UNLOCKING GROWTH FOR WOMEN
While the pandemic has been hard for women-led busi-
nesses, in the studies we conducted, we found that wom-
en business leaders showed a greater degree of flexibility
in their business models in response to Covid-19. In fact,
female business leaders were more likely to make more
than 50 per cent of their sales through digital channels.
We have noticed a similar trend on our apps; 20 per cent
of Instagram Business profiles created since November
2020 mention the words ‘female/women owned’.
Of the 63 million small businesses in India, approxi-
mately 20 per cent are owned by women. Research and
studies show that bringing women online can spur eco-
nomic progress, expand markets and improve health
and education outcomes for everyone.
We know that gender equality is crucial to a sustain-
able internet economy. While this is a big focus area for
the government, the private sector has an equal respon-
sibility to enable women to come online and to help
women entrepreneurs to grow.
Facebook, in collaboration with The Nudge Centre
for Social Innovation, incubates and accelerates early
stage women-led non-profits. Now in its second phase,
the initiative awards six grants of up to `50 lakh for each
non-profit to scale up their work.
Our goal is to provide opportunities for women even
in rural areas. In 2020, together with the CSC Academy,
Facebook up-skilled 2.5 lakh rural entrepreneurs on dig-
ital tools related to digital marketing and online safety.
As a result of this, the average income of women village-
level entrepreneurs increased by nearly 20 per cent on a
quarterly basis.
Every day, we come across inspiring stories of wom-
en-led businesses using digital to unlock growth for
themselves and their businesses.
 THE NEXT INDIA OPPORTUNITY

THE POWER OF BHARAT

The rural internet population is growing faster than the
urban one, and by 2025, rural India is likely to have a higher
number of internet users compared to the urban centres.
That more and more innovations and business models are
going to be propelled by rural India is not a probability but
a certainty.
The big opportunity for businesses right now is to build
for the new-to-net population and the next 300 million
people who will come online by 2025. We are constantly
building for India with this lens in mind.
WhatsApp, for instance, is enabling millions of small
business owners to speak to their customers in real time.
Many kirana shops and micro businesses have replicated
their physical storefronts with digital with the end-to-end
encrypted messaging app and are creating a new growth
opportunity for themselves. Artinci, a young Bengaluru-
based natural ice-cream, cake and cookie maker, uses
online channels exclusively to communicate about its
business and connect with its customers. The home-
grown company directly takes orders on WhatsApp and
supplies freshly made ice-creams across various localities
in the city.
Our investment in Jio is a critical part of this vision. Its
goal is to enable new opportunities for businesses of all siz-
es, but especially for small businesses across India. We see
WhatsApp making it seamless for businesses to connect
with their customers, and the integration with JioMart will
help make it even easier for customers to view catalogues
and shop from the app.

NEXT DECADE OF GROWTH

Small businesses don’t just contribute 30 per cent to India’s
GDP, they are also drivers of entrepreneurship, innovation
and employment. In fact, employment within micro, small
THE RURAL and medium enterprises rose from 23.9 million in 2000-01
INTERNET to nearly 111 million in 2019-20. Bringing the next 30 mil-
POPULATION IS lion businesses online can put India on the path of explo-
sive economic growth.
GROWING FASTER In India, we have barely scratched the surface in terms
THAN THE URBAN of the benefits that can be derived from digitally empower-
ing people and businesses. The dots further connect when
ONE, AND BY 2025, you reflect on what is at the heart of powerful technol-
RURAL INDIA IS ogy ecosystems — openness, that people and businesses
LIKELY TO HAVE A will build off each other’s ideas to solve for India’s unique
needs. This deeply resonates with the values of India and
HIGHER NUMBER its belief in an open democracy. The focus has to be on
OF INTERNET USERS building an inclusive ecosystem that attracts world-class
talent, world-class capital, and, given the scale of India’s in-
COMPARED TO THE ternet, ends up solving problems not just for India but also
URBAN CENTRES for the rest of the world.

20 Business Today 5 September 2021

 THE NEXT INDIA OPPORTUNITY

MINING
LOCAL
DEMAND
AS PENT-UP DEMAND KEEPS THE ECONOMY
POISED FOR A BOUNCE-BACK, PRAGMATIC
POLICY REFORMS AND A VIBRANT
DISINVESTMENT PROCESS CAN ENSURE
THAT THE METALS AND MINING INDUSTRY
HELPS INDIA AND ITS CITIZENS PROSPER

T
he performance of India’s economy
during the past few quarters has been
good, despite the considerable uncer-
tainty created by the second wave of
Covid-19. Notwithstanding these con-
tinuing challenges, the country looks
set to register impressive growth this
year. As the second wave wanes, vaccina-
ANIL AGARWAL
tion drives accelerate and states gradu- FOUNDER-
ally unlock, an all-round optimism is re- CHAIRMAN,
emerging. VEDANTA
RESOURCES LTD

22
ILLUSTRATIONS BY NILANJAN DAS
POLICIES AND REFORMS
India will keep attracting investments and advancing
steadily to become the manufacturing hub of the world as
it continues with broad structural reforms to ease policy
and infrastructure bottlenecks. The Centre’s emphasis on
rural development and employment generation are well
supported by programmes such as ‘Atmanirbhar Bharat’
(self-sufficient India), ‘Make in India’ and ‘Digital India’.
It is no surprise that the latest Union Budget has included
measures to support micro, small and medium enterpris-
es (MSMEs), which are indispensable to generating jobs,
manufacturing and growth in non-metros.
Over the coming months, a sustained rise in consump-
tion and a revival in investments will give a further fillip
to economic growth. Simultaneously, demographic driv-
ers such as an increasing workforce and urbanisation will
constantly fuel the need for greater infrastructure develop-
ment. Consequently, one expects to see a sustained focus
on infrastructure, transportation and power. The plan for
300 million tonnes steel capacity by 2030, `111 lakh crore
investments earmarked for National Infrastructure Pipe-
line projects from 2020-25, `5.54 lakh crore of budgeted
capital expenditure for 2021-22, the roll-out of electric ve-
hicles, production-linked incentive (PLI) schemes for man-
ufacturing, as well as reforms in the power sector, all augur
well for a rise in demand for indigenously produced metals,
23
 THE NEXT INDIA OPPORTUNITY
both ferrous and non-ferrous.
There is enormous scope to increase India’s per-capita
consumption of zinc, aluminium, copper, steel and other
metals, which is low vis-a-vis the global average. Further-
more, the country’s per-capita oil consumption stands at
less than a third of the global average, indicating the im-
mense growth potential for domestic producers.
In this context, the Centre’s proactive approach to ma-
jor policy reforms in the technology and manufacturing
sectors will help create a conducive business environment.
Metals, mining, and oil companies will benefit from the
National Mineral Policy (NMP) 2019, the Open Acreage Li-
censing Policy (OALP) and the Hydrocarbon Exploration
and Licensing Policy (HELP).
The NMP will introduce effective regulation and also
address the problems of those impacted by mining. The
progressive policy aims to liberalise the industry by giving
private players opportunities that were previously reserved
solely for state-owned companies. The policy measures
envisage that India’s mineral production will soar by 200
per cent within the next five years, while its trade deficit in
minerals will reduce by half.
Moreover, steps will be taken to benchmark taxes and
royalties — which are high in India — with those in min-
ing geographies across the world to attract further invest-
ments while guaranteeing that statutory clearances are
accorded on time. The amendments made this year in the
Mines and Minerals (Development and Regulation) Act of
1957 will foster a more supportive, legislative ambience for
monetary and technological investments in the fields of
mining and mineral exploration.
Since its implementation, HELP — which aims to boost
domestic oil and gas production — has helped attract sig-
nificant investments and provide major employment op-
portunities in the industry. Similarly, OALP — a pivotal
part of HELP — permits contractors to explore legacy and
unconventional oil and gas resources on a revenue-sharing
basis as well as gives them the freedom to market and price
their production.
DISINVESTMENT BENEFITS
Against this backdrop, the Centre’s decision to scale up di-
STEPS WILL BE TAKEN TO BENCHMARK TAXES AND
ROYALTIES — WHICH ARE HIGH IN INDIA — WITH
THOSE IN MINING GEOGRAPHIES ACROSS THE WORLD
TO ATTRACT FURTHER INVESTMENTS
24 Business Today 5 September 2021
vestments is in the right direction. The `32,845 crore raised
from disinvestments of state-run firms in FY21 was barely
16 per cent of the `2.10 lakh crore target and the lowest
amount raised in the last five financial years. Undoubtedly,
the pandemic marred the process. This fiscal’s divestment
target of ` 1.75 lakh crore, though ambitious, is quite achiev-
able given the stock market’s revival to hit all-time highs.
The government plans to sell stakes in various enti-
ties, including one insurance entity and two public sec-
tor banks. For instance, the government is expected to
pocket between `90,000 crore and `1 lakh crore alone
from Life Insurance Corporation’s upcoming initial
public offering (IPO). Likewise, its 52.98 per cent stake
in Bharat Petroleum Corporation Limited (BPCL) is es-
timated to garner between `75,000 crore and `80,000
crore, or likely even more.
But, rather than divesting stakes in one company at a
time, which means the government will take considerable
time to hit its disinvestment targets, a speedier transfer of
assets is essential. Accordingly, the Centre should target
around 20 disinvestments annually to generate huge re-
serves. The disinvestment drive is in sync with the prime
minister’s thought that the government has no business to
be in business. Therefore, except for four sensitive sectors,
the Centre’s decision to divest its stake in all listed public
sector units is a sensible one.
As the prime minister has noted, disinvestment helps
in monetising and modernising assets. When public assets
are monetised, the vacuum is filled by the private sector,
which brings the best global practices into play and helps
the sector modernise and expand much faster than other-
wise possible. This results in generating more jobs and en-
trepreneurial opportunities.
In all divestment cases, the government should reduce
its stake to 50 per cent. The 50 per cent divestment is cru-
cial because it will allow the company in question to have an
independent board and chief executive officer even as it is
treated as a regular corporate entity. It will also provide the
management the much-needed operational flexibility and
faster decision-making ability, all the while remaining un-
der the regulatory framework of the country. Above all, the
chance to operate with freedom is necessary for the com-

THE CURRENT MARKET
EUPHORIA PROVIDES
AN EXCELLENT
OPPORTUNITY TO FETCH
ROBUST REVENUE FROM
THE DISINVESTMENT
PROCEEDS. THE
BUREAUCRACY SHOULD
BE MOTIVATED TO GRAB
THIS OPPORTUNITY
pany to head on the road to faster growth and profitability.
That being said, time is of the essence. The current
market euphoria provides an excellent opportunity to fetch
robust revenue from the disinvestment proceeds. The bu-
reaucracy should be well oiled and motivated to grab this
never-before opportunity.
THE TRUST FACTOR
All such initiatives will further boost the country’s tre-
mendous entrepreneurial power, particularly in segments
connected with MSMEs, the backbone of India’s econo-
my. With 63 million enterprises creating 110 million jobs,
MSMEs account for 30 per cent of India’s GDP and 48 per
cent of its exports. Thanks to these factors, the country has
all the elements to develop into the world’s third-largest
economy within the next decade. The recent fiscal mea-
sures announced by Finance Minister Nirmala Sitharaman
will facilitate a faster revival of MSMEs, which will contrib-
ute significantly to a post-Covid economic boom.
Backed by big-ticket reforms, India could beat the cur-
rent slowdown more effectively. Towards this objective,
26 Business Today 5 September 2021
the mining and natural resources seg-
ments can play a significant role in in-
viting large investments, substituting
imports and generating greater em-
ployment across myriad roles in both
public and private sector companies.
In the power segment, the recent
coal sector reforms will trigger higher
investments by bringing in major glob-
al mining players, boosting production
and reducing imports, generating em-
ployment as well as moving the nation
towards self-reliance, in line with the
prime minister’s vision. As coal mining
requires major machinery and human
resources, the tremendous potential of
commercial mining benefitting ‘Make
in India’ and augmenting employment
are apparent.
Concurrently, it will help build a
strong foundation for the country to
move towards energy security, with
a focus on responsible mining. However, for all this to be
achieved seamlessly, it is necessary to remove roadblocks.
Although the Ministry of Environment has recently
come up with a host of initiatives that can lead to indus-
trial development, certain clearances still take inordinately
long, inflating project costs.
Here, the decision of the ministry to permit self-certifi-
cation in certain cases must be applauded. The government
needs to trust that private players using this mechanism
won’t exceed permissible pollution limits and should im-
pose hefty penalties on any company that breaches them.
Such a practical framework will address the need for spe-
cific timelines to obtain clearances at the earliest, ensuring
a project’s viability is unaffected. On the other hand, with-
out such a framework, even if a company needs to simply
increase production, an unduly long wait for clearances
hampers its progress.
There have been efforts to improve the business climate
previously, by boosting the ease of doing business. Howev-
er, in many cases, they have been akin to taking two steps
forwards and one back. To solve this logjam, it is imperative
to establish environment norms that are practical and fea-
sible for all stakeholders, balancing the need for growth and
development alongside healthy lifestyles.
In such scenarios, there should be a certain level of
trust between the authorities, entrepreneurs and the coun-
try’s citizens. Self-certifications along with stringent safe-
guards can serve this purpose, with the gains accruing to
the exchequer, our people and the planet.
 THE NEXT INDIA OPPORTUNITY

GO FOR A
VIBRANT
BOND
MARKET
INNOVATIONS CAN DOUBLE THE
SUPPLY OF CORPORATE BONDS IN THE
DOMESTIC MARKET TO `65-70 LAKH CRORE
BY MARCH 2025

T
he pandemic has not only altered the coun-
try’s economic trajectory, it has also brought
to the fore the need to focus on social infra-
structure. For long, nature has been warning
us to shift towards sustainable growth mod-
els. Government policy and direction are cen-
tral to achieving this, be it through infrastruc-
ture build-outs, fiscal stimulus or retooling of ASHU SUYASH
the economy to address health, inequality and MANAGING
climate change challenges. DIRECTOR & CEO,
CRISIL LTD

28
ILLUSTRATIONS BY RAJ VERMA
Two areas stand out, ripe with possibilities for India
and India Inc. alike. One is the under-developed, yet ex-
panding, corporate bond market. The second is some-
thing that’s been getting serious attention the world over:
environmental, social and governance (ESG)-driven
investing.
DEEPENING OF THE CORPORATE
BOND MARKET
The fulcrum of the government’s India development (and
now building-back) strategy is the National Infrastruc-
ture Pipeline (NIP), which envisages `111 lakh crore in-
vestments between fiscals 2020 and 2025. The focus on
sustainable growth will add to that tally. Raising this much
money, however, is an onerous ask, particularly given the
overwhelming fiscal burden today. Therefore, developing
the corporate bond market and finding alternative fund-
raising avenues will be critical. In line with the historical
trend, the government expects corporate bonds to con-
tribute only 6-8 per cent of NIP investments, primarily
through public sector issuances. That won’t suffice.
The corporate bond market in India has grown by
more than four times in the last decade toSanjiv `32.5,
aroundPuri
lakh crore (bonds outstanding in Chairman andStill,
fiscal 2020). MD, it
ITC
is
29
 THE NEXT INDIA OPPORTUNITY
less than 20 per cent of GDP, which is very low compared
with international standards. Besides, the market is grap-
pling with the structural challenges of width and depth
of issuances. Access to bond market funding is limited to
high-rated entities, predominantly in the financial sec-
tor. Over 65-70 per cent of bond issuances are by financial
sector entities, and over 85-90 per cent are AA and above.
If bond funds have to be directly channeled towards indi-
vidual infrastructure projects, the gap between the low
risk appetite of investors and risk levels of projects needs
to be bridged.
INNOVATION AND REGULATORY HELP
Innovations such as asset pooling, a well-capitalised
Credit Guarantee Enhancement Corporation and
widespread adoption of the EL (expected loss) rating
scale can help mobilise an additional `7-10 lakh crore via
infrastructure bonds by fiscal 2025.
Pooled assets enable scale, diversification and flexi-
bility to structure cash flows. This can help attract foreign
capital, improve the confidence of bond market investors
and consequently facilitate monetisation of operational
infrastructure assets. Such takeout financing can help
banks and non-banks free up chunks of outstanding cred-
it for fresh lending.
Three pooling vehicles that can support bond issu-
ances are:
Infrastructure investment trusts (InvITs): The
assets under management (AUM) of InvITs and real
estate investment trusts have reached nearly `2 lakh
crore as of fiscal 2021, a 42 per cent compounded an-
nual growth rate since the first InvIT was launched in
fiscal 2018. CRISIL’s estimates show InvITs can enable
monetisation of `6.5 lakh crore worth of infrastructure
assets over the medium term, which can be part-funded
by bond issuances of `3-4 lakh crore for roads, power
transmission, gas pipelines, telecom infrastructure and
renewables.
Co-obligor structures: These comprise multiple spe-
cial purpose vehicles (SPVs) of a sponsor acting as a guar-
antor for the collective debt of all SPVs. Sponsors can form
pools of select SPVs tailor-made to fit the risk appetites of
different investors. Such structures are already being used
to fund operational assets in sectors such as renewables
and roads, including toll-operate-transfer bundles.
Securitisation and covered bonds: Lenders can se-
curitise loans to operational infrastructure assets, just
the way retail loans are packaged and sold. The presence
of cash collateral to absorb losses will instil confidence
in investors, who can also derive comfort from the well-
established legal and administrative practices governing
30 Business Today 5 September 2021
securitisation. Lenders can also explore covered bonds
backed by a pool of loans where investors can enjoy dual
recourse – to the issuer and the cover pool of loans – if the
issuer’s credit quality weakens.
OTHER BOOSTER SHOTS
A well-capitalised Credit Guarantee Enhancement Cor-
poration can facilitate bond issuances by lifting stand-
alone credit ratings of operational infrastructure assets
to levels desired by investors. Capital invested in such a
corporation would have a significant multiplier effect.
A recent, and salutary, augury is the launch of the Ex-
pected Loss, or EL, rating scale by the Securities and Ex-
change Board of India. This provides additional informa-
tion on the EL over the lifetime of an infrastructure debt
issuance, complementing the traditional credit rating.
Investors can use EL, along with the probability of default
rating, and pick investments aligned with their risk appe-
tite. CRISIL Ratings estimates that innovations can dou-
ble the supply of corporate bonds in the domestic market
to `65-70 lakh crore (outstanding) by March 2025. That
would increase the size of the corporate bond market to
21-23 per cent of GDP by fiscal 2025.
Yet, the demand for corporate bonds is expected to
fall short by close to `5 lakh crore, according to CRISIL’s
calculations. Hence, the supply-side innovations need to
be complemented by four measures to stoke demand:
One, attracting retail investors through tax rationali-
sation, such as capital gains tax parity between equity and
debt products and promotion of exchange-traded and
other index-linked funds.
Two, developing market infrastructure such as credit
default swaps, and quickly setting up the proposed insti-
tution to provide secondary market liquidity to bonds.
Three, and perhaps the most critical, would be mea-
sures to attract foreign capital such as easing of withhold-
ing tax, and inclusion of Indian bonds in global indices to
channel capital from global index funds. Foreign inves-
tors are essential to ensure high market appetite for cor-
porate bonds, especially given the potential crowding out
of domestic funds by the government’s gigantic borrow-
ing programme.
Four, and materially important, is enhanced report-
ing on ESG factors.
THE ESG FACTOR
ESG has moved from being a just another investor-centric
data point to an integral factor in strategic decision-mak-
ing. This makes ESG profiling of companies a crucial fa-
cilitator to draw foreign capital. Between 2018 and 2020,
more than $100 billion flowed into ESG funds globally,
 FOCUS
BATHROOM & KITCHEN

HANSGROHE: A 120 YEAR OLD

Mr. Gaurav Malhotra, MD, Hansgrohe India
LEGACY BASED ON SUSTAINABILITY;
INNOVATION & DESIGN !
When a century old company continues to dominate a field, it is an explicit endorsement of their leadership in
their domain. It also acknowledges their values and their customer orientation. You need to define and set the
industry standards. To stay relevant to the 4th generation of customers, you need to constantly innovate and
consistently do the right things. As the Managing Director - India, Mr. Gaurav Malhotra is the right person to
be explaining the success of Hansgrohe.

We are given to understand that the foundations
of the Hansgrohe empire was laid 120 years ago,
in 1901. The world has certainly changed. How has
Hansgrohe managed to remain relevant across these
decades?
Since our inception, we have strived to prioritize the
needs and comfort of our users. Both hansgrohe and AXOR
products are created with the purpose of delivering human-
centric water experiences that make one truly feel alive.
Our drive is to express our passion for water, with ideas
that are blueprints for tomorrow, and a design that stands
the test of time, which have helped us to remain ahead of
the curve.
German Brands are known for solid workmanship.
Modern customers give more importance to design.
How does Hansgrohe address this expectation
without compromising on the quality?
We have partnered with the world’s top designers and
most creative minds including Antonio Citterio, Phoenix
Designs, Philippe Starck, Jean-Marie Massaud, Barber &
Osgerby, among many others, who have immense expertise
in innovative design. For instance, Philippe Starck is the
creative mind behind the AXOR Starck collection which was
launched in year 1994 and still is one of the best-selling
products of AXOR brand.
We have been hearing about your innovation
laboratory. What is the kind of work that you do
there? What do we expect in the future?
While in the past, gradual changes allowed companies
to make profits, the future will require radical leaps and
bounds in innovation to achieve success. In this context,
our innovation labs are the epicentre of ingenuity.
An interdisciplinary team comes together to think of
the future of bathrooms, every day anew. They use
agile working tools and a clearly defined innovation
process through which they think outside the box,
create new ideas, develop prototypes, and carry out market
tests.
How long does it take for new international
designs to come to India? Do you also craft products
exclusively for India?
We launch products globally and post their global launch,
it takes 1-2 months for the products to be available in
India. We have not anticipated the need to craft products
exclusively in India. While designing our products, we
ensure that the outcome is universal designs and suit every
type of bathroom.
How big a market is India for you? Can you share your
India plans with us?
India is a billion-euro total faucet market and at this
moment with the current play only 10% of the market is
accessible to us. We are working to make brand and price
points available to larger section of the population
 THE NEXT INDIA OPPORTUNITY
ESG HAS MOVED FROM
BEING A JUST ANOTHER
INVESTOR-CENTRIC
DATA POINT TO AN
INTEGRAL FACTOR IN
STRATEGIC DECISION-
MAKING. THIS MAKES
ESG PROFILING OF
COMPANIES A CRUCIAL
FACILITATOR TO DRAW
FOREIGN CAPITAL
clocking a 15 per cent CAGR. ESG-mandated AUM totaled
$40 trillion as of December 2020, and is expected to touch
$100 trillion by fiscal 2030.
In India, too, ESG funds are expected to grow by at
least 15 per cent annually, to over $60 billion in 2025. In
lockstep with overseas investors, domestic institutional
investors and lenders have also started taking into ac-
count a multitude of ESG factors, including environmen-
tal impact, climate change, resource conservation and
impact on marginal communities.
That growing pool presents a humongous opportu-
nity for India’s corporate bond, equity and loan markets
to tap, by developing an ecosystem that encourages ESG
adoption and assessment. In this, the government and
regulators are expected to provide the biggest impetus.
The signs are encouraging. While the Indian govern-
ment has been setting up structures to meet India’s Paris
Agreement targets and Sustainable Development Goals,
32 Business Today 5 September 2021
the Reserve Bank of India has joined
the Network of Central Banks and
Supervisors for Greening the Fi-
nancial System and the Securities
and Exchange Board of India has
launched Business Responsibil-
ity and Sustainability Reporting for
enhanced disclosures. Then there
are the stewardship codes devel-
oped by SEBI, PFRDA and Irdai, as
well as India’s active role in global
ESG fora.
These positive developments
notwithstanding, newer challenges
are bound to emerge as more and
more investors, bond holders and
lenders implement ESG strategies.
We anticipate issues around lack of
expertise, less-evolved analytical
tools and disclosures on environ-
mental and social factors compared
with more structured corporate
governance ones, and changing of
strategies from exclusion to active
ownership and integration.
CRISIL’s recent survey of nearly
100 respondents, comprising cor-
porates, investors and intermediar-
ies, establishes beyond doubt that
ESG is perceived as significant, even
critical, for raising capital. The importance of ESG fur-
ther goes up in relation to patient capital. However, data
consistency remains a key stumbling block for investors.
Investors who responded to the survey reported in-
ability to read the signals and cut through the noise.
That’s partly because the information is not material to
the company and partly because it is not in a state that is
readily ingestible. Moreover, the respondents felt that the
evaluation of companies through multiple frameworks
largely devoid of local nuances has not been of much help.
They want to see Indian companies assessed against a
hybrid global-local ESG framework with a localised un-
derstanding.
Over the next few years, raising the ESG quotient will
require building up expertise and integrating it into de-
cision making. It will also necessitate standardistion of
disclosures and access to credible independent scores and
benchmarks.
The government thus has its task cut out on the two
prongs – corporate bonds and ESG. The sooner we align
these to our common ends, the better it will be for us.
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 THE NEXT INDIA OPPORTUNITY

INSURERS
TO TURN
FINTECH
PLAYERS
COVID-19 MAY BE A BLACK SWAN EVENT,
BUT HEALTH INSURERS ARE PREPARING
BY CASTING A WIDER NET BY USING
TECHNOLOGY TO EXPAND THEIR REACH

L
arge-scale health catastrophes aren’t new.
The world has already witnessed a series of
epidemics, including SARS, MERS, Ebola and
Zika. But Covid-19 is different, a pandemic
that swarmed the planet at one go, leaving no
place for us humans to take refuge. Certain
developments over the years allowed the vi-
rus to spread far and wide.
BHARGAV DASGUPTA
On one hand, we root for interconnectedness, to make the MD AND CEO,
entire world our playground and on the other, we are sobered ICICI LOMBARD
by its consequences. Today, it wouldn’t be surprising if an out- GENERAL INSURANCE

34
ILLUSTRATIONS BY NILANJAN DAS
break in a remote village in one part of the world spreads to
a major city on the other side within a matter of days.
Of course, we cannot reverse gears or turn our back on
all the benefits and opportunities of a global world. But we
need to be cognisant of the associated risks. We should not
be like the frog who remains comfortable in a pot of water
that is being gradually heated until it boils to death — a
story that is perhaps more accurate for humans than frogs.
The key is to be aware and prepared.
THE PROBLEM IS THE SOLUTION
While interconnectedness has now become a bane in the
physical world, it is a boon in the virtual one. There is a
possibility of 15-20 per cent of healthcare systems shift-
ing to virtual platforms by 2025. The telemedicine mar-
ket is expected to be worth $5.5 billion in the next five
years by growing at a CAGR of more than 30 per cent.
This includes teleconsultations, remote monitoring, e-
pharmacies and more. While Indian health-tech is at a
nascent stage, the recent mushrooming of start-ups and
inflow of private capital are expected to fuel the growth
of this segment. Moreover, this feeds into changing con-
sumer preferences for digital healthcare.
Home healthcare is gradually making a large portion
of hospital visits redundant and that, in turn, will reduce
Sanjiv Puri ,
Chairman
travel costs for patients and operational and MD,
expenses ITC
for hos-
35
 THE NEXT INDIA OPPORTUNITY
pitals. The Covid-19 crisis has sparked a surge in the home
healthcare market, which had primarily been fragmented.
A significant number of patients now finds it convenient
to use apps and other tools to avail healthcare from the
comfort of their homes. Complex tests and diagnostics
are also finding their way from labs to homes as integrated
health and wellness platforms reshape the framework of
testing and consulting.
The research and analysis at ICICI Lombard reflect
this embracing of health-tech, with Gen Z and millennials
leading the way. They have gone beyond the generic hab-
its of tracking their weight and BMI to monitoring their
blood pressure, sugar and oxygen levels. With 56 per cent
of the respondents to a survey saying they have a health-
care app and 44 per cent relying on a digital fitness band
to track their vital statistics, there is no doubt that health-
tech is the post-pandemic new normal.
ALIGNED INCENTIVES
As the healthcare landscape evolves, so will health insur-
ance. The industry regulator — the Insurance Regulatory
and Development Authority of India (IRDAI) — is pro-
moting measures, such as the use of e-KYC, for easier issue
and renew of policies. Today, leading insurers cover treat-
ment through telemedicine in their policies. The benefits
are three-pronged — it gives patients flexibility and en-
sures social distancing, reduces the load on overburdened
healthcare facilities and reinforces the trust that insurance
solutions will take care of health needs whenever required.
Complementing the changing face of insurance,
healthcare inflation has surged due to the rising costs
of medicines, tests, fees and healthcare facilities. This
means insurance has clear financial benefits for both in-
dividuals and businesses. And even for the State, the more
effectively the public manages healthcare risks, the more
resilient is the economy. The role of health insurance is,
thus, pivotal.
For insurers, the essential task is to make their prod-
ucts and services more accessible, affordable and conve-
nient for customers while creating greater awareness and
transparency about their benefits and limitations. The
interest of insurers and their customers is aligned — to
avoid unnecessary hospitalisation and minimise medical
expenses. As such, insurers should focus on partnering
with customers in their endeavour to stay healthy.
This bodes well for the insurance industry and society
at large. As more and more customers stay healthy, the cost
of claims will drop and, consequently, so will insurance
premium rates. That means a larger populace can come un-
der the insurance fold while freeing up the overburdened
healthcare system—a big win for all stakeholders.
36 Business Today 5 September 2021
FUTURE-READY SOLUTIONS
The IRDAI has already introduced new policies aimed
at wider insurance coverage. The Aarogya Sanjeevani
Policy, for example, facilitates simplified insurance by
introducing a standard product that is understandable
and accessible to all. The launch of Corona Kavach and
Corona Rakshak also came as a boon for people in the
lower-income strata, giving them affordable coverage
for Covid-19. More than three million policies were sold
within a few months of their launch, making the world
take notice of these pioneering steps by Indian health
insurers.
Many new ailments are also on the radar of health
insurers, mirroring the identification and rise of specific
health issues. Mental illness, age-related degeneration
and internal congenital diseases are also finding coverage
in some new-age health insurance offerings.
India’s goal of universal health coverage (UHC) may
seem audacious but is achievable with well-planned col-
laboration between regulators, government establish-
ments and private players. In the first year of its imple-
mentation, Ayushman Bharat helped close to four million
Indians avail cashless treatments. However, there are
gaps — in infrastructure, the availability of skilled profes-
sionals, the rural-urban divide, and more. Private players
can play a significant role to bridge them.
The private sector is already responsible for more than
70 per cent of healthcare services in India, and a strong
partnership with the public sector can be reformative for
the industry. The public sector needs to boost the health-
care financing required for a developing country like ours,
bring in suitable reforms to encourage digital healthcare,
and increase the supply of healthcare professionals. The
private healthcare players, including insurers, can help
streamline and manage last-mile delivery, drive India-
centric innovation and set up healthcare standards and
treatment protocols to drive efficiency and quality out-
comes at affordable costs.
TECHNOLOGY AS A GAME CHANGER
India has recently started adopting the right healthcare
technologies. Digital health is now within reach of sev-
eral people residing in remote areas thanks to a growing
young, tech-savvy populace. Technology is empowering
consumers and is also an enabler for insurers looking to
expand penetration and reach. We see artificial intelli-
gence (AI), machine learning (ML) and blockchain mak-
ing their way into the BFSI (banking, financial services
and insurance) sector. Soon, every finance and insurance
firm will need to be a fintech player, with technology be-
coming a necessity for survival.
 inbuilt monitoring and assess-
ment tools. More than 15,000
customers benefited from this
easy-to-use facility last financial
year. We also have a digital vault
for our customers to store their
medical records and health track-
ers for their fitness goals. All these
health and wellness initiatives
are technology-driven and aim to
make the lives of our customers
easier.

WE ARE WITNESSING TOWARDS PREVENTIVE

A RADICAL SHIFT IN HEALTHCARE
THE WAY CONSUMERS Even with a looming pandemic, it
is not economically viable to shut
EXPECT HEALTH down a country for long durations.
INSURANCE SOLUTIONS Instead, a better alternative is to
encourage citizens to maintain
TO DELIVER. FEATURES self-discipline and adopt healthy
SUCH AS AUTOMATED practices such as social distancing and wearing masks.
CLAIM PROCESSING, Citizens must pledge to follow the necessary health and
hygiene guidelines and protocols. Together we need to be-
PERSONALISED come a country of smarter, wiser and responsible citizens.
INSURANCE PLANS AND We are already witnessing a shift towards preventive
HUMANISED CHATBOTS healthcare owing to rising disposable incomes, health
and lifestyle awareness as well as conscious wellness.
ARE FAST BECOMING THE The preventive healthcare ecosystem is ripe and the in-
NORM. TECHNOLOGY HAS surance industry is warming up to this idea. By facilitat-
ing comprehensive health check-ups clubbed with early
BECOME A NECESSITY diagnosis and intervention, many chronic diseases can
FOR SURVIVAL be nipped in the bud.
Moreover, wellness must be looked at from multiple
facets, including physical, mental, financial and emo-
tional health. Resilience has been a critical differentiat-
ing factor in societies that emerge stronger from a cri-
sis. ICICI Lombard’s India Wellness Index shows that
We are witnessing a radical shift in the way con- people who adopt wellness are better placed to handle
sumers expect health insurance solutions to deliver. health-related challenges in the long run. And so, aspir-
Features such as automated claim processing, person- ing for wellness as a society will help us build a stronger,
alised insurance plans and humanised chatbots are fast more resilient nation.
becoming the norm. At ICICI Lombard, we have been For far too long, the first reaction to uncertainty has
actively leveraging digital solutions to introduce inno- been panic. Predicting when and where a health hazard
vative, tech-enabled solutions aligned with the evolving may threaten us is still an evolving science. Until then,
needs of our customers. practising prevention, building resilience and having a
Our digital platforms like ILTakeCare app offer audio- sufficient financial cushion is a better risk mitigation
video consultation with specialist and super-specialist strategy. It is time that all of us, as stakeholders in the
doctors through “IL Hello Doctor.” The app covers all healthcare ecosystem, come forward to build comprehen-
aspects of preventive, primary and secondary healthcare sive, enabling, and future-ready solutions for our young
and enables holistic health management through various and aspiring population.

38 Business Today 5 September 2021

EXCELLENT ARE THE ONES WHO MAKE EXTRAORDINARY A HABIT.
Our most Coveted MDRT Members

“We are extremely proud of our achievers who took the path to be extraordinary and reached the top of the peak! Their success
will encourage many other aspirants to unleash their potential and scale up the peak of success as TATA AIA Life continues its
journey to be the pre-eminent protection provider in the country.

KHUSHI MOTWANI RAHUL KUMAR RATHI URVI ASHISH DOSHI RAJENDRA KUMAR TANMAYA RAO A SAI KUMAR NAIK
Raipur Raipur Ahmedabad NAGPAL - Sikar Hyderabad RUPAVATH - Vijayawada

SHILPY LAW RUSHABH NITIN MAGIYA BEENA SANJAY DALAL KHYATI SAGARBHAI SHETH OM PARKASH SHREYAS RAJNIKANT
Patiala Mumbai Surat Jamnagar Sirsa KOTHARI - Mumbai

MOHIT GOEL YASHIKA SINGH RUPA KRISHNAN IYER KUSUMBEN I SHAH MODI BHAVANA RAJESH
Gurugram Varanasi Hyderabad Ahmedabad Bharuch

JANE MASHAHARY SHILPA MEDIKONDA BIBHA DEVI RITU PARWAL RITU RAJ RAJPUROHIT
Kokrajhar Hyderabad Patna Udaipur Pune

JENY N SHAH HARINDER PAUL SINGH SHASHI RANJAN GUPTA SANGEETA CHHAJED NIRAJ PANKAJ SHAH
Ahmedabad Gurugram Delhi Dhamteri Mumbai

KRUPALI MAHENDRABHAI SHIKHA GUPTA SIDDHARTHSINH ASHOK- SENDIL KUMAR R DILIP KUMAR DAS KARTIK SHYAMSUNDAR
LAKHANI - Rajkot Jaipur SINH MAHIDA - Vadodara Bengaluru Kolkata MEHTA - Ahmedabad
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HEALTH

Our most Coveted MDRT Members

RAJESH NATHANI NAMRATA JIGAR BHOOMI SHARMA SURESH KUMAR NEVIL DEVANG DESAI YOGESH KUMAR SAINI
Hyderabad CONTRACTOR - Vadodara Hissar BINDHANI - Rourkela Navsari  Bhatinda

SHAMPAT KANVR SUBRATA SARKAR APARNA JAIN MANVEET KAUR BHATIA HARSHIT AGGARWAL GARIMA BANSAL BANSAL
Jodhpur Sreerampur Jaipur Jabalpur Pathankot Jind

SWATI URJIT POPAT KALPANA GUPTA RAVI MAHESHKUMAR SHYAM SUNDAR DUTTA JAIN ANIL KUMAR
Mumbai Sikar AGARWAL - Surat Bankura Delhi

KIRAN KUMARI SANJANA SARMA SEJAL BHAVSAR ZUBIN HOMI LILAOOWALA NEHA SANJEEV TANWAR
Patna Chennai Mumbai Mumbai Surat

VAISHALI JAINIKKUMAR DIGVIJAY SUMANT ARTI RASTOGI DINESH GUPTA SHWETA GOEL
SHAH - Ahmedabad VEDALANKAR - Solapur Delhi Delhi Noida

MUHAMMADHUSAIN A SUNITA ARUN BELGALKAR YASHASWI RAJORA R TAMILARASAN PRADIPTA KUMAR DIXIT
CHITALWALA - Jamnagar Pune Jaipur Namakkal Bhubaneswar
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VAISHALI DHARMESH MAMTA RANI PRATEEK VIJAYVARGIYA JIGAR ARVINDBHAI NEERU DEVI SUMAN MAZUMDAR
SHAH - Ahmedabad Hissar Jaipur JIYANI - Bardoli Delhi Hazaribagh

SANJAY THOMAS RIPAL JAIMIN GOSAI NAMEETA UTSAV DOSHI AKSHYA KUMAR NAYAK AANCHAL SHARMA KRUNAL P SHAH
Bengaluru Vadodara Rajkot Rourkela Delhi Ahmedabad

RENU GIRISH AMESUR RAJENDER KUMAR NISHA RANI PRAKASH INDRABHAN PRASHANT KUMAR GHOSH
Nasik Hissar Hissar GANDHI - Pune Pune

HETALBEN CHIRAGKUMAR JAGDISH SINGH SHEETAL AGARWALLA ROHIN KERSI RAVINDER DEB
PATEL - Ahmedabad Hissar BHANSALI - Guwahati SHERDIWALA - Mumbai Kolkata

SUKETU CHINUBHAI SHAH K RAVICHANDRAN SEJAL ASHOK GELDA VIDIT GUPTA SUNIL KUMAR SAINI
Ahmedabad Erode Kolhapur Muzzafarnagar Jaipur

ANIMESH VASHISHT AMIT GUPTA INDRANI GUHA ARUN M RINA DAS DEWANJI BHUPENDER BHUPENDER
Meerut Delhi Kolkata Mysuru Sreerampur Narwana
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SRIKAANTH RAMDASS DODDERI THIMMAIAH MEET DEEPAK SHARMA BEENA MAYURBHAI MEGHA KHEMKA SHARRY VERMA
Bengaluru VENKATESH - Bengaluru Vadodara SATIKUVAR - Rajkot Guwahati Ludhiana

N RONALD STEVENSON BIPASHA DE JIGISHA TAPANKUMAR HARSHA MODI MADHU KHEMKA MANPREET KAUR
Vizag Durgapur AVAIYA - Surat Jamshedpur Dibrugarh Delhi

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Pune Amritsar Silchar Ludhiana Nagpur

AMAIRA CHHABRIA NAVNEET PRAKASH VIRAL JYOTINDRA DOSHI PUSHKAR NITIN DHULE PRIYADHARSHINA
Mumbai Patna Mumbai Thane Chennai

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Mumbai RAI - Pune Durgapur Jodhpur KHANDOL - Gandhidham

SHARON PIRES RIYA VINCENT VINCENT BASUDEB KUNDU ANCHAL KHEMKA BHARAT THACKER
Mumbai Thiruvananthapuram Bankura Guwahati Kolkata

“Always aim at perfection for only then will you achieve excellence”
- J.R.D. Tata
 THE NEXT INDIA OPPORTUNITY

CRYPTO
CAN BUILD CHANGPENG
ZHAO

BILLION
FOUNDER & CEO,
BINANCE

DOLLAR
MARKETS

BLOCKCHAIN AND CRYPTO INNOVATIONS

ARE TRANSFORMING THE GLOBAL
ECONOMY FOR GOOD. WITH A CLEARER
REGULATORY FRAMEWORK ON THE
HORIZON, INDIA CAN PLAY A LEADING
ROLE IN THIS EMERGING MARKET
44
ILLUSTRATIONS BY RAJ VERMA

45
 THE NEXT INDIA OPPORTUNITY
After years of steady and gradual
growth, global adoption of blockchain and
crypto accelerated during the pandemic.
Facing uncertainty in a turbulent world
economy, more people than ever before
turned to crypto for the first time. Last year,
Bitcoin emerged as a new and exciting tech-
nology for individuals, companies and even
governments. More recently, El Salvador
became the first country to adopt Bitcoin
as legal tender, a landmark decision that
prompted governments around the world to
re-evaluate the role of crypto.
Crypto is incredibly versatile and can be used as a cur-
rency, reward, token and much more. Regardless of how the
Indian government decides to classify this emerging tech-
nology, what is important is that they continue to foster lo-
cal innovation in the blockchain and crypto space.
As one of the largest and fastest-digitising economies
in the world, India is uniquely positioned to lead the block-
chain and crypto space. Key factors include India’s ambi-
tious investments in science and technology, which have
created a durable engine for economic growth, as well as
the nation’s extensive efforts to increase internet access
around the country.
According to research from Statista, India’s internet
penetration rate, which measures access to the internet, in-
creased by around 45 per cent in 2021, against just 4 per cent
in 2007. Today, there are more than 560 million internet
users in India, making it one of the world’s largest markets
for online consumers. Against this backdrop of innovation,
a new generation of digital natives and knowledge workers,
46 Business Today 5 September 2021
eager to connect to the global economy, are on the lookout
for new technologies that provide greater access to eco-
nomic opportunities.
BEYOND BITCOIN
The past year has seen a seismic shift in public attitudes
towards crypto. Mainstream adoption, a long-time goal for
crypto advocates, seems more attainable than ever, fuelled
by a combination of unlikely sources, from traditional insti-
tutions announcing crypto offerings to celebrities promot-
ing blockchain projects on social media.
While Bitcoin continues to dominate the conversation
when it comes to crypto, much of the value in the industry
lies in blockchain technology, which has the potential to
connect everyday users to millions of potential jobs, from
blockchain-powered entrepreneurial projects and fintech
solutions to initiatives in international trade and com-
merce — not to mention fields such as arts, nonprofits and
beyond. While it’s important to move the conversation be-
yond Bitcoin, it’s also necessary to appreciate how it offers
users an accessible gateway to the wider — and sometimes
more complex — world of crypto.
THE RISE OF NFTs
Non-fungible tokens (NFTs), a type of blockchain technol-
ogy that has existed in some form for years, recently took
off in popularity when sports organisations packaged it
as an appealing digital collectible for fans and collectors.
According to a report from NonFungible.com, in the first
quarter of 2021 alone, NFT sales topped $2 billion. Today,
the NFT ecosystem has expanded far beyond the realm of
sports collectibles and memorabilia, as NFT marketplaces,
including Binance NFT Marketplace, create meaningful
economic opportunities for regional talents and creators
from around the world. For many Indian artists, NFTs are a
revolutionary new class of crypto that allows them to easily
monetise their artwork, earn royalties from sales and con-
nect with global audiences.
The rapid growth of the NFT industry demonstrates
many of the unique advantages inherent to the blockchain
and crypto industry, where innovative technology, cou-
pled with the right use-case at the right time, can create
booming international markets—seemingly overnight.
The next game-changing innovation, whether it’s a DeFi
project or another blockchain-based application, could be
here already.
BLOCKCHAIN FUNDRAISING
Few industries have the potential to generate global, bil-
lion-dollar markets. It goes without saying then, that the
global blockchain ecosystem is incredibly vibrant, and at-
 THE NEXT INDIA OPPORTUNITY
tracts many of the world’s top creators and developers. Ac-
cording to research from UNESCO, India already produces
the most science, technology, engineering and mathemat-
ics (STEM) graduates in the world—those uniquely quali-
fied to contribute to and benefit from the global blockchain
ecosystem.
Binance.com has also sought to harness top talents in
the industry by offering an incubation programme for
some of the most promising blockchain projects. Through
blockchain fundraising programmes, we’ve been able to
identify and support up-and-coming initiatives that aim to
grow the blockchain and crypto industry, including Mar-
lin Protocol, an infrastructure provider for decentralised
networks founded by graduates from the Indian Institute
of Technology, Bombay (IIT-B). India’s entrepreneurial
potential is unmatched, and blockchain funding promises
to connect India’s homegrown talent with global investors.
Blockchain funding opportunities also extend to chari-
ties and non-profit organisations. Blockchain-based dona-
BLOCKCHAIN-BASED
DONATION SYSTEMS
OFFER INCREASED
TRANSPARENCY,
ALLOWING DONORS TO
TRACK THE PROGRESS
OF THEIR DONATIONS AT
EVERY STAGE
tion systems offer increased transparency, allowing donors
to track the progress of their donations at every stage, from
the point of donation to end beneficiary.
With new entrants quickly entering and exiting mar-
kets to meet demand, there are still risks to navigate and
challenges to contend with. So, at this critical juncture, it’s
important to remember that the blockchain and crypto
industry is still in its infancy. Although there is a lot of en-
thusiasm and demand surrounding crypto, many are still
apprehensive about their long-term value. To address these
concerns, players within this emerging space need to build
trust and confidence in their platforms, products and ser-
vices. After all, trust is earned, not given.
INDIA’S CRYPTO INNOVATION
With millions of potential jobs hanging in the balance,
Indian regulators and policymakers have made proactive
efforts to engage with the complex blockchain and crypto
landscape and propose clear regulatory standards. Regula-
tory transparency is extremely valuable, as it provides a sol-
id foundation for the continued development of the block-
chain and crypto industry. Market participants, both large
and small, will also benefit from a set of clear standards that
they can apply as a critical lens to shape their growth and
business objectives.
Though crypto has historically been an area of focus for
Indian regulators, the technology has wide-ranging use-
cases that require a robust system of frameworks and laws
to protect users. At the end of the day, users
always come first—what’s good for users
is good for the wider industry. As crypto
continues to mature, regulatory clarity can
provide a strong catalyst for India to be-
come a fintech leader in this space, one that
sets an example for other regions to follow.
So, it’s safe to say that crypto is on the
verge of mainstream acceptance. Further-
more, crypto has come to play an influen-
tial role within the global economy, creat-
ing financial opportunities for anyone with
access to the internet. With momentum
building, now is the time for players in the
blockchain and crypto industry to work
with regulators and local governments to
provide consumers with secure and com-
pliant access to this emerging technology.
India, with its talented, digital savvy work-
force and receptiveness to emerging tech-
nologies, has the potential to play a leading
role in the continued growth of the block-
chain and crypto industry.
 THE NEXT INDIA OPPORTUNITY

MAKING
A GLOBAL
IMPACT
YOUNG ENTREPRENEURS ARE NOT ONLY
CREATING SOLUTIONS TO SERVE THE NEEDS
OF THEIR DOMESTIC ENVIRONMENT BUT
ALSO ONES THAT CATER TO TWO-THIRDS OF
THE GLOBAL POPULATION

I
recently had the privilege of being on a global
webinar with a 19-year-old entrepreneur from
Sitamarhi, Bihar. Instead of pursuing studies
overseas or seeking a government or corpo-
rate job, this young entrepreneur established a
start-up that provides a unique service. It helps
other start-ups in neighbouring towns and vil-
lages raise funds and scale up their business.
These start-ups represent every possible sector: DEEPAK BAGLA
agriculture, waste management, e-commerce, CEO AND MD,
INVEST INDIA
education, medicare and artificial intelligence,
among others. These innovators are not just the

52
ILLUSTRATION BY RAJ VERMA
navigators of India’s growth story but its
very engines of growth. They are the cre-
ators of this growth and the energy that is
propelling us into the future, to a ‘New India’.
New India is framed not only by enterprises but also the
enterprise of countless entrepreneurs, both young and the
not-so-young. The story of start-ups in India is not just the
story of economics or finance or even the story of business-
es. This story represents the immense social, economic and
political transformations occurring within India at pres-
ent. The elements of these changes have come together to
create a singular trajectory towards growth and prosperity.
They have enabled the most unprecedented transforma-
tion — both in scale and pace — ever seen in the free world.
The start-up ecosystem in India is emblematic of these
changes. It paints a picture of a future that is yet more pros-
perous for India and, indeed, the world.
For a long time, these start-ups were concentrated in
economic hubs like Bengaluru, Mumbai or Gurugram.
But not anymore. The roots of our start-up journey are
now spread in every corner of the country. During the pan-
demic, for instance, some of the most exciting start-ups —
whether they made the best quality ghee or the most aro-
matic incense from discarded temple flowers — came from
villages and small towns and cities.
These start-ups are reimagining the very value of In-
dia’s rich and diverse geography, teaching us to relook at
53
 THE NEXT INDIA OPPORTUNITY
our forests, our rivers and streams, our mountains, and
the ingenuity of our people. India’s start-up revolution is
neither all elite nor entirely urban. Its fastest-growing and
most unique hubs lie in countless small towns and rural ar-
eas where entrepreneurs have used newfound digital con-
nectivity as the anchor for profitable commerce. The move-
ment is vigorously growing in every home, every village and
every district. Indeed, of the country’s 739 districts, more
than 600 have at least one registered start-up.
This flourishing of start-ups can be credited to the
widespread internet penetration in the country. There
are nearly 800 million internet users in India already. Ev-
ery second, three more go online for the first time, two of
whom are from a village. Today, India has over a billion citi-
zens, each with a unique identity linked to a bank account, a
billion with mobile phones and, in the next 24 months, a bil-
lion on the internet. This is an unprecedented, potent stack
of access and opportunity.
This is the India opportunity — unparalleled in size and
scope. Our economy offers an unmatched market business
opportunity, not just for start-ups, but for each business en-
tity and individual in India; a potential one can easily capi-
talise on through just a text message or the push of a button.
Digital India has created an inclusive growth momentum
across the country, democratising India’s growth benefits.
EVOLVING MINDSETS
The backbone of this entrepreneurial revolution is a digiti-
sation process that now touches every aspect of life in India.
Our world-class digital payment infrastructure, our digi-
tally enabled new logistics systems, and digital-first, smart
marketing have changed the way business is done at the
grassroots. The combination of entrepreneurial momen-
tum and digital facilitation has bridged distances, trans-
formed consumer mindsets, and brought about, among
other things, a direct-to-customer boom in the country.
These start-ups are a tribute to the minds of India’s
youth who, through economical innovation, are not only
establishing multi-billion-dollar institutions but also cre-
ating effective solutions for our challenges. These start-
ups are reaching all corners of the country and becoming
IT TOOK MORE THAN 26 MONTHS FOR US TO REACH
THE FIRST 10,000 START-UPS. THE LAST 10,000 START-
UPS CAME UP IN A MERE SIX MONTHS. IN THE FIRST
HALF OF 2021, INDIAN START-UPS RAISED MORE THAN
$10 BILLION, SURPASSING THE 2020 TOTAL
54 Business Today 5 September 2021
instruments through which communities realise their po-
tential. They are bridging gaps that thousands of Indians
previously thought were impossible to overcome.
The success of India’s start-up ecosystem has consis-
tently inspired our youth to push the envelope of innova-
tion. Young entrepreneurs are not only creating solutions
to serve the needs of their domestic environment but also
ones that cater to two-thirds of the global population. They
are local in development, but global in impact. As a result of
their imagination and ability to deliver, these Indian start-
ups have become engines for growth — not just in India, but
for the entire world.
Equally remarkable is how these new and emerging
start-ups are changing the way many traditional indus-
tries have operated for decades, some even centuries. From
dramatically shortening the time to deliver tea from leaf to
cup and medicines from pharmacy to home to reimagining
diagnostic processes and how doctors function, and from
bringing education on-screen effortlessly to live-streaming
religious functions and enabling digital participation —
there is almost no aspect of everyday life that is untouched
by the power of a start-up’s enterprise fuelled by rapid digi-
tisation. India is becoming a society — not just an economy
— driven by entrepreneurial zeal.
This start-up movement has also highlighted the evo-
lution of the Indian thought process. People today don’t
see failure as the fallout of ambition but as an opportunity
to learn. The start-up zeal of a democratic India has recast
its social, economic and political ambitions. It has created
a new mantra that defines the ‘New India’: failure fuels the
drive to excellence.
START-UP CENTRAL
India is, at present, the fifth-largest economy in the world,
climbing from 10th position in 60 short months. Our econ-
omy today is worth $3 trillion and will more than triple to
$10 trillion by 2030. India is the largest (a population of 1.4
billion by 2025), youngest (27 years median age) and fast-
est-growing (working-age population of nearly 1 billion by
2025) demographic.
It is also leading the world’s largest digitisation move-
 THE NEXT INDIA OPPORTUNITY
ment, largest health insurance drive and largest vaccina-
tion programme to counter the Covid-19 pandemic. We are
becoming more competitive on the global stage and carv-
ing our space in the global business map. And while we have
made rapid progress, the movement has only begun; the
magic has only just started to unfold.
Start-up India is a remarkable player in this story. By it-
self, it, too, is a very young start-up, launched just five years
ago in January 2016. Its success is an outstanding represen-
tation of the magic we can create with the trifecta of mis-
sion-driven policy-making, impactful implementation and
partnership with the people. Start-up India functions as
and embodies the ethos of an impact-driven, high-growth
start-up and has made start-ups central to both the people
and the government. This can be witnessed in its unprec-
edented success in the last 60 months that made India the
third-biggest start-up ecosystem in the world today.
We have grown from just 4,000 registered start-ups
in 2016 to 50,000 today (80,000 as per market estimates).
Four new start-ups join their ranks every hour, a statistic
that is unparalleled globally. We rank third globally in the
number of unicorns, which are also among the largest and
fastest-growing in the world. Despite the pandemic and
lockdowns, one unicorn was created every month in India
last year. In the first seven months of this year, we got 20
more. By 2025, India will have 150 unicorns, sailing past its
previous target of 100.
What is remarkable is the pace at which this is unfold-
ing. It took more than 26 months (about 800 days, or 19,000
hours) for us to reach the first 10,000 start-ups. The last
10,000 start-ups came up in a mere six months (about 180
days, or 4,300 hours). In the first half of 2021, Indian start-
ups raised more than $10 billion, surpassing the 2020 to-
tal. These start-ups highlight not only the ease of doing
business in India but also the zeal of its demographic, par-
ticularly the youth who are pursuing their passion, chasing
excellence and are indispensable in the creation of a New
India.
A JOB WELL BEGUN
Indian innovators are also deftly navigating the cutting-
edge and increasingly crowded start-up ecosystem in
the country. They have successfully identified disruptive
sectors and created products that add genuine value to a
consumer’s experience. From a hotel aggregator to an e-
marketplace for fashion products, from a ride-hailing com-
pany to a digital payments one, each new start-up has been
a game-changer in the lives of millions of Indians and how
they interact with the internet each day. This is a most re-
markable achievement given that the internet is still very
young in the country and people’s relationship with it is still
56 Business Today 5 September 2021
in the very nascent stage.
Furthermore, tech-based start-ups in India are increas-
ingly exploring the fields of artificial intelligence particu-
larly in healthcare, education and home systems. Their
success will further India’s contribution to global techno-
logical advancement.
Another remarkable aspect of the story of start-ups in
India is that many of them—45 per cent of all start-ups, in
fact—are run by female leaders. They are leveraging tech-
nology to capture previously untouched sectors such as
fashion, beauty, animation and inventory management.
Female leaders are also helming some of the largest start-
ups in finance, e-commerce and travel. These start-ups are
championing gender equality and greater workforce diver-
sity. This is a significant positive impact on the Indian start-
up ecosystem that is sure to have a lasting impact on Indian
society and the economy.
In a way, then, start-ups have become the lens through
which India views its future as a leading global economy.
They represent a society that is increasingly self-confident
and self-empowered. Indians are no longer looking for safe,
comfortable jobs but to follow their passions, to become
the best in whatever they desire. They have captured their
inherent ability to adopt and adapt to new technologies to
create world-class solutions that are practical, economi-
cal and easily scalable. We are among the fastest-growing
economies in the world and the International Monetary
Fund projects that despite Covid-19, India will regain its
position as the fastest-growing major economy.
Indeed, the pandemic became an opportunity for In-
dians to capitalise on their frugality and adaptability. Our
reputation for frugal innovation, to create magic with
morsels, was not lost during this time as start-ups, MSMEs
and large companies joined hands to meet the needs of the
hour. They deftly pivoted business models to help India
brave the worst pandemic of the modern era by supplying
domestically made ventilators, masks, sanitisers, protec-
tive equipment, test kits and oxygen concentrators. In
fact, thanks to such efforts, India went from producing a
minimal number of personal protective equipment (PPE)
kits to becoming the world’s second-largest manufacturer
in two months.
These achievements highlight our strengths and serve
to make India more competitive globally, especially as we
emerge as a manufacturing hub. Our focus now is on en-
suring excellence in quality. To truly capture the global
imagination, India will not only offer the widest range
of goods that are at the very cutting edge in their space,
but also those of the highest quality, accompanied by the
greatest quality of service.
This is the New India. And its story has just begun.
 THE NEXT INDIA OPPORTUNITY

TARGET:
A $120
BILLION
INDUSTRY
INNOVATION AND UNIVERSAL
HEALTHCARE CAN MAKE THE INDIAN
PHARMACEUTICAL INDUSTRY
A FORCE TO RECKON WITH BY 2030

I
n a virtual international conference last year, Prime
Minister Narendra Modi hailed India’s pharmaceuti-
cal industry as an asset not just for India but the entire
world. From manufacturing generics to highly com-
plex formulations to biosimilars and specialty medi-
cines, the nation’s pharmaceutical industry has come
a long way. Today, it is regarded as the ‘Pharmacy of
the World.’ In terms of volume, it is ranked the third-
DILIP SHANGHVI
largest globally, accounting for 60 per cent of global MANAGING
vaccine production. India is the largest provider of ge- DIRECTOR,
SUN PHARMA
neric drugs and hosts the highest number of USFDA-
approved plants outside the US.

58
ILLUSTRATION BY NILANJAN DAS
Since the outbreak of Covid-19, the Indian pharmaceu-
tical industry has played a leading role in providing high-
quality, affordable medicines globally. With the world in a
lockdown, it faced serious challenges such as supply of active
pharmaceutical ingredients (APIs), movement of medicines,
etc, but ensured that there was minimal disruption in supply
of essential medicines. This speaks volumes about the contri-
bution of the industry to the world economy.
INDIAN PHARMA – VISION 2030
Even though, over the last few years, the Indian pharmaceuti-
cal industry has shown stable growth of 7-10 per cent, there
are several opportunities ahead of us. At the current CAGR,
the industry can grow from $40 billion to $80-90 billion in
revenues by 2030. However, if it sets bold aspirations to
grow at 11-12 per cent CAGR, it can reach $120-130 billion
during the same period. To achieve this vision, it is impera-
tive that we identify the key levers of growth.
LEVERS OF GROWTH
Universal Health Care: The Indian government has com-
mitted to increasing the public healthcare spending as a
percentage of GDP from the existing 1.15 per cent to 2.5 per
cent by 2025. This is a right move towards achieving univer-
sal healthcare. The government has already laid a strong
foundation by announcing the Ayushman Bharat Yojana.
It is important that the industry participates in the govern-
ment’s vision of providing universal healthcare. Ayushman
59
 THE NEXT INDIA OPPORTUNITY
Bharat Yojana, the most ambitious healthcare programme
in the world which will cover about 50 crore citizens, is an
opportunity for the industry to help India’s underserved
masses with high-quality, affordable drugs.
Life Sciences Innovation Hub: We should aspire to
build a strong innovation pipeline with focus on new mo-
lecular entities, incremental innovations, biologics, gene
therapies and specialty drugs. We have got early successes
in development of next-generation product classes, but
there is a long way to go. What we need is a research ecosys-
tem, and that will make India a life sciences innovation hub.
A made-in-India researched drug can be made available at a
lower cost. It will improve access to innovative medicines,
helping the stretched healthcare systems globally.
Leadership in Generics: India should aspire to be-
come the world’s largest and most reliable drug supplier
by volume. I believe our Indian pharmaceutical industry
can play a much bigger role in supplying high-quality ge-
neric medicines to the world. In the last decade, America
has saved nearly $2.2 trillion due to generics, and this op-
portunity is available to all countries. We should adopt
a two-pronged strategy: establish a leadership position
in the US generics space and develop a strong presence
in traditionally underpenetrated markets such as Japan,
China, Africa and Latin America. As per estimates, brand-
ed molecules with cumulative global sales of over $251 bil-
lion are expected to go off-patent between 2018 and 2024.
This is a big opportunity for the industry; it can benefit
substantially from the patent cliff.
Contribution to the Indian Economy: The Indian
pharmaceutical industry can contribute substantially to
the growth of the nation’s economy. The industry gener-
ates $13 billion in foreign exchange, which can go up to $30-
40 billion by 2030 if there is a proper policy framework and
meticulous execution. The industry can create one to two
million additional jobs for the country in the same period,
boosting consumption in the local economy.
CHALLENGES & OPPORTUNITIES
If the industry has to achieve its Vision 2030, it has to navi-
gate certain challenges. To start with, it needs a stable pric-
ing policy and supportive regulatory environment to en-
courage investments and innovation in the country. High
dependence on imports for APIs should come down. We
should focus on API manufacturing through plug-and-play
infrastructure support in dedicated zones. The govern-
ment’s Production Linked Incentive Scheme to boost do-
mestic manufacturing capacity of pharmaceutical prod-
ucts is a good step in this direction.
Our prime minister has, on several occasions, ex-
pressed a strong desire for Indian pharmaceutical com-
60 Business Today 5 September 2021
panies to invest in innovation and further streamline the
regulatory processes. The government needs to play a big
role to make India a life sciences innovation hub. What we
need is a research ecosystem that is supported through
competitive tax breaks on R&D investments, technology
transfers, etc, as well as regulatory interventions/simplifi-
cation. It will allow Indian pharmaceutical companies to
invest in the development of new molecules, dosage forms
and drug delivery systems that will give it an edge for sus-
tainable growth.
As per IQVIA, the global pharmaceutical market in
2020 was estimated at $1.27 lakh crore, with more than 60
per cent coming from innovative medicines. Indian phar-
maceutical companies which have capabilities, size and
scale should aspire to get a bigger share of the innovative
medicines market by investing in cutting-edge research.
There is another important factor that will spur innova-
tion in the industry -- collaboration. How the pharmaceu-
tical industry has collaborated to respond to Covid-19 is a
case in point. I strongly believe that collaboration between
pharmaceutical companies, academic/research institutes
and the government is the way forward. The government
can intervene by helping set up and operationalise indus-
try-wide ‘at scale’ capability building programmes to cre-
ate a skilled talent pool that can be readily absorbed into the
workforce.
To protect and promote the industry’s interests, the
government could also set up an independent Ministry of
Pharmaceuticals and consolidate the current set of regula-
tors, CDSCO and NPPA. This will accelerate the develop-
ment of the sector and facilitate faster decision-making.
As the industry expands globally, we need continuous
investment in enhancing quality standards to keep our
promise of becoming a ‘high quality reliable’ supplier of
medicines. On this front, capability building with regula-
tors like the USFDA and other drug authorities will help us
better understand global expectations and implement best
practices.
ACHIEVING EQUITABLE HEALTHCARE
I believe that the Indian pharmaceutical industry is ready
for the big leap in the coming years, and we have a clear
road map to achieve it. For a developing country like In-
dia, equitable and sustainable healthcare is of utmost
importance. While the overall growth for the industry is
required, the same needs to be visible in improvement in
accessibility, reduced disease burden and better health-
care delivery that translates into overall good health for
the citizens. For this, the private sector needs to work
with the government to ensure that the quality of lifestyle
is improved in a sustainable way.
 FOCUS
HEALTH

DR. MONICA B. SOOD- A SHORT BILDUNGSROMAN

OF IMMENSE GROWTH
D
r. Monica B. Sood, a distinctive Monica never gave up, as she maintained continuity
luminary who has burgeoned by strengthening her organisation, proclaiming
through continuous adversities. for World Peace, and simultaneously learning and
The excessive pressure coupled with grasping every bit of knowledge she could get her
the setbacks during her life did not let hands on.
her flee to the ropes, indeed she rose As the leader of the 98-year-old NAVJIVAN
on her feet and continued on the way organisation, which is defined by the term “New
to fortune, and now she postulates Life,” it is safe to say that she has given new life to
that ‘success is the consequence of people who have suffered from a variety of deadly
unwavering dedication and focus diseases. The outpouring of praise she has received
as you go down the road of labour.’ from countless patients she has helped narrates the
The narrative of Dr. Monica B. Sood tale of her brilliant strokes.
is sufficient to instil an inexhaustible Her natural affinity for herbs, minerals, and
desire to succeed. ayurvedic medicines, which began at a very early
Dr. Monica is a qualified Physician age, has transformed her abilities into virtuosity,
in Ayurvedic Medicine and Surgery, she became determined to heal people and
with Master’s degree in Business eradicate diseases that are currently considered to
Administration - Human Resources, be incurable in this world.
International Business, and Law. Dr. Sood has played a multifaceted role over the
Always on the lookout for new years, building on her extensive medical experience
knowledge, her most recent education to fight for the cause of truth in various countries,
Dr. Monica B. Sood
includes courses in Cancer Metastasis CEO, Navjivan Health Service often at the expense of her own life. She has endured
from John Hopkins University in the a great deal of social and political turmoil, as well as
United States, and Thoracic Oncology excruciating pain and suffering. The international
from Michigan University in the rapport and common wavelength of thoughts she
If you want to soar high give up everything that weighs
United States. established between people from different races,
She has recently been awarded with you down – Clasp your vision and trust the process cultures and nationalities all over the world were a
the Woman of Excellence Award 2020 result of her efforts.
– 2021 by the Indian Achievers Forum, as well as the Cures, and various establishments under the Navjivan Her social-cultural endeavours in India to promote
Outstanding & Remarkable Contribution to the Health Group, she is also the sole proprietor of Navjivan national cohesiveness and solidarity are supplemented
Sector (Ayurvedic Medicine & Surgery)-XEL Global Group. Furthermore, she serves as the Chairperson by a campaign for world peace, which she is leading.
Healthcare Awards 2021 for her work in the field of of the National Unity and Security Council, which is In pursuit of the patriotic goal of reviving the country’s
Ayurvedic medicine and surgery. She has recently a socio-economic and World Brotherhood-related economy, she is recommending to the government
been nominated for a Global Excellence Award in the organisation. urgently required reforms as well as new policies and
category for best Treatments & Healthcare and her Dr. Monica is well-versed in the field of medicine; she is programmes that will result in positive improvements
unwavering dedication in serving humanity. able to recognise and decipher the problems that each in the country’s socio-economic infrastructure, among
Since she was five years old, she has had a strong individual who seeks her assistance is experiencing. other things. Her plans, which are based on a scientific
interest in herbology, particularly in connection to She has a thorough understanding of the physical and approach, will almost certainly achieve the desired
medicinal plants. Her meticulous attention to detail mental ailments and provides the effectual remedies results by making the Indian economy truly dynamic
was developed as she carefully examined each feature to the patients in eliminating their diseases and and vibrant. She has high hopes for them.
of many medicinal herbs and minerals that were linked restoring health and fitness in them. Besides that, she is emphasising gender equality,
to fatal chronic illnesses. She developed her abilities in She claims that there was not a single day during believing that a significant increase in gender
healing, understanding, and problem solving under which she did not discover or learn something new egalitarianism will result in faster economic growth,
the tutelage of her father and grandfather, who served that she could apply to the good of mankind. Similarly, as well as better outcomes for youth and children.
as the global face of Navjivan during the time of her she believes that just as no two individuals’ fingerprints Encourage a young woman to attend school, provide
development. can ever be identically duplicated, the physical and her with an appropriate education, and help her to
She is a well-travelled woman who also works as a social mental anomalies of any two patients suffering from overcome poverty and destitution. Dr. Monica believes
worker. She is personally committed to eradicating a common disease can rarely be correlated. that when a woman receives a thorough education
deadly diseases, alleviating the suffering of the poor, At the age of 18, she became the CEO of Navjivan and is aware of her rights, she and her children live
and promoting peace among the various nations. In while still studying. Despite going through difficult happier and healthier lives, and she contributes to the
addition to Navjivan Health Service, Navjivan Herbal periods in both her personal and professional life, Dr. economic development of the country.
 ILLUSTRATION BY RAJ VERMA

62
 THE NEXT INDIA OPPORTUNITY

THE
TECTONIC KRISHNAMURTHY
SUBRAMANIAN

SHIFT IN
CHIEF ECONOMIC
ADVISER,
GOVERNMENT
OF INDIA

INDIA’S
ECONOMIC
POLICY

THE NEW ECONOMIC THINKING IS BASED

ON THREE KEY PRINCIPLES: GROWTH
AND EFFICIENT WELFARE; ETHICAL
WEALTH CREATION; AND A VIRTUOUS
CYCLE FOR ECONOMIC DEVELOPMENT.
TOGETHER, THESE WOULD LEAD TO A
DECADE OF INCLUSIVE GROWTH
63
 THE NEXT INDIA OPPORTUNITY
The Indian economy witnessed a V-
shaped recovery last year after the pan-
demic-induced decline in the first quarter
as India was the only large country that
experienced two consecutive quarters of
positive growth; see this year’s Economic
Survey and Monthly Economic Report
(MER) May 2021 for evidence. After the Co-
vid-19 second wave halted this recovery for
a couple of months, the Indian economy is
geared up for fast growth. This confidence
stems from the fact that India is the only
country to have launched path-breaking
reforms and radically altered its economic
thinking amidst the pandemic. As devel-
oped over the last three Economic Surveys
of the Government of India, the new eco-
nomic thinking for India relies on three
key principles to achieve the objective of
“Minimum Government, Maximum Gov-
ernance.”
While we all romantically reminisce about the 1991 re-
forms today, we must remember that the then government
faced stringent opposition from all corners, including the
ruling party itself. Many did not foresee the enormous im-
pact that the reforms were to create. The full import of the
change in economic thinking was realised over time. Simi-
larly, the benefits of the radical change in India’s economic
thinking post Covid will manifest in India’s growth path
over the coming decades.
64 Business Today 5 September 2021
To draw a parallel, India winning the 1983 Cricket
World Cup was epochal because it came against all ex-
pectations. Almost three decades later, India winning the
2011 World Cup was as seminal because it heralded India’s
arrival as a cricket superpower when India fulfilled the
high expectations. Similarly, the 1991 reforms happened
when there was no expectation of such a seminal turn. The
path-breaking reforms post Covid — again almost three
decades later as with the 2011 World Cup win — will ful-
fil the high expectations of India becoming an economic
superpower.
1. PIVOTAL CHANGE IN
INDIA’S ECONOMIC THINKING
As shown in the figure below, the first principle lays out
explicitly the policy objective while the other two princi-
ples specify the models for achieving the policy objectives
at differing levers of granularity.
First, complementing an exclusive focus on economic
growth with efficient welfare so that growth generates
the resources for welfare programmes and the efficiency
of welfare programmes ensures that the resources are
utilised optimally to not only reduce inequality but also
to enhance aggregate demand in the economy. The ex-
plicit separation between economic growth with effi-
cient welfare enables comparative advantage and thereby
enhances efficiency. Specifically, rather than hobbling
macro-economic policies with the objective of reducing
1. Growth
+ Efficient
Welfare
INDIA'S
ECONOMIC
VISION
2. Ethical 2. Virtuous
Wealth Cycle
Creation
THE CHANGE
TOWARDS EMBRACING
WEALTH CREATION
IS A DURABLE ONE
BECAUSE THE POLITY
NOW RECOGNISES
THAT ETHICAL WEALTH
CREATION HAS BEEN
PART OF INDIA’S DNA FOR
MILLENNIA. THE IDEA
OF ETHICAL WEALTH
CREATION AS A NOBLE
HUMAN PURSUIT IS
ROOTED IN INDIA’S OLD
AND RICH TRADITION
inequality and thereby jeopardising growth prospects,
the separation enables optimisation of macroeconomic
policies for growth, on the one hand, and microeconomic
policies for efficient delivery of welfare to the masses on
the other hand.
Second, this government, in reflecting the shift in the
thinking of new India, views wealth and wealth creation
— created ethically — as a boon and not a bane. This is a
significant break from the muddled narratives that view
profit as a dirty word and returns India back to its DNA,
where the common person writes shubh laabh, that is, gen-
erate profit by doing good, at the altar in his home. Thus,
enabling and empowering of private sector becomes a key
element of state policy with the resulting emphasis on
privatisation and asset monetisation. This policy enables
two fundamental drivers of economic policy — incentives
and information — to work for the economy rather than
against it.
Third, the macroeconomic model for growth relies on
the virtuous cycle originating from private investment
with public capital expenditure (capex) helping to “crowd
in” private investment. Supply-side reforms that alleviate
various frictions on the supply side of the economy help to
accelerate private investment as well.
2. A SEMINAL, DURABLE TURN IN INDIA’S
ECONOMIC HISTORY: EMBRACING
WEALTH CREATION
The Hon’ble Prime Minister’s speech in the Budget Ses-
sion of Parliament on February 10, 2021, highlighted a
seminal, durable turn in India’s economic history as he
5 September 2021 Business Today
underlined the importance of wealth creation and role of
the private sector. Acknowledging this pivotal moment,
on February 11, 2021, The Hindu Business Line titled its lead
editorial “Watershed Moment” and wrote:
“On the floor of the Lok Sabha, (the PM) made two
major points: One, the country needs wealth creators or
producers in the first place for that wealth to be distrib-
uted, and that they should not be unfairly attacked; and
two, the idea of the government running public enter-
prises has outlived its time and that the bureaucracy in
any case should not be running them. Scarcely ever has
any senior politician, let alone a prime minister, spoken
with such candour in Parliament… Economic Survey
2019-20 made a detailed case for promoting wealth cre-
ators, making a crucial distinction between being ‘pro-
business’ and ‘pro-crony’.”
What led to this pivotal change in India’s political
economy? Understanding this aspect is critical to predict
whether the change is ephemeral or durable. After all, it
is not as if the case for enabling the private sector has not
been made in India before. The unparalleled acceptance
stems from the unique approach of the 2020 Economic
Survey, which combined modern economics with ancient
Indian wisdom. Mint aptly described this Survey as “old
wisdom and modern economics”. Hitherto, the appeal
to free markets and the private sector in India had been
motivated by drawing on the ideas of Adam Smith and his
descendants, thereby encountering resistance from the
average Indian worried about imposition of western ideas.
Naturally, the polity reflected this worry of the average
Indian. As a result, reforms post 1991 were done mostly in
stealth, thereby putting a big question mark over the dura-
bility of reforms.
In contrast, the change towards embracing wealth
creation is a durable one because the polity now recog-
nises that ethical wealth creation has been part of India’s
DNA for millennia. The idea of ethical wealth creation as a
noble human pursuit is rooted in India’s old and rich tradi-
tion ranging from Kautilya’s Arthashastra in the North to
Thiruvalluvar’s Thirukural down South. Given the dem-
onstrated economic benefits that India reaped—both
historically and post the 1991 economic reforms — the po-
litical conviction towards embracing wealth creation has
been laid solidly.
The reforms announced post Covid articulate this piv-
otal change in India’s economic thinking. These include
inter alia: (i) The government of India’s enterprise policy
focussed on enabling the private sector, under which the
government will remain in a select few sectors and that
too with only a handful of public sector enterprises; (ii)
privatisation this year of Air India and BPCL in the non-fi-
65
 THE NEXT INDIA OPPORTUNITY
nancial sector and two public sector banks and one insur-
ance company in the financial sector; (iii) opening up of
several sectors to competition including defence produc-
tion, mining, power distribution and cryptography.
3. VIRTUOUS CYCLE
FOR ECONOMIC DEVELOPMENT
The virtuous cycle originating from private investment
is crucial for sustained economic growth in India. By ex-
amining the sample of countries that grew at least at 5 per
cent per annum in real terms over at least a decade, The
Economic Survey 2018-19 demonstrated that sustained
economic development originates from private invest-
ment. Investment leads to productivity gains and cre-
ation of jobs, both of which increase disposable income
in the economy and thereby foster consumption. Thus,
in the first-round effects embedded in the virtuous cycle,
private investment is the most crucial for enhancing con-
sumption. In the second-round effects embedded in the
virtuous cycle, anticipated increases in consumption spur
further investment by the private sector. The virtuous cy-
cle delivers explosive growth as consumption and invest-
ment feed each other symbiotically.
This virtuous cycle model for economic development
is an adaptation of the “Accelerator–Super Multiplier”
model developed by Nobel laureates Paul Samuelson and
John Hicks. India’s model with its emphasis on public
capex during economic downturns differs significantly
from the Keynesian prescription of government spending
via revenue expenditure (revex) or doles during economic
downturns. This emphasis on public capex is necessary in
India today. For example, Bose and Bhanumurthy (2013)
show that an increase in revex by 100 only adds 98-99 to
the economy while increase in capex by 100 adds 245 to
the economy in the same year and 480 over the next sev-
eral years.
The virtuous cycle originating from private invest-
ment relies on three key aspects: (i) countercyclical fiscal
policy; (ii) public capex, especially in infrastructure; and
(iii) reforms to alleviate supply-side frictions.
3.1. COUNTERCYCLICAL FISCAL POLICY
Do you know that the Imambara in Lucknow was built to
provide work to people during a period of famine? This
is an example of countercyclical fiscal policy that was
implemented historically in India. Fiscal policy has to be
countercyclical in order to accelerate the virtuous cycle
because private investment needs an environment of low
macroeconomic uncertainty to prosper. When fiscal poli-
cy is pro-cyclical, because tax revenues required for fiscal
spend are lower in recessions/slowdowns and higher when
66 Business Today 5 September 2021
the economy is booming, such policy exacerbates the
intensity of business cycles and thereby increases mac-
roeconomic uncertainty. The increased macroeconomic
uncertainty created by pro-cyclical fiscal policy deters
private investment while lower macroeconomic uncer-
tainty engendered by the smoothening of business cycles
spurs private investment; see Economic Survey 2020-21
for the details. Second, higher growth generated during
downturns by countercyclical fiscal policy enhances debt
sustainability by increasing the wedge between the nomi-
nal interest rate and the nominal growth rate. Third, pub-
lic investment during economic downturns is self-financ-
ing over the medium-term because the fiscal multipliers
from public investment are significantly higher during
economic downturns and recessions. The Union Budget
this year powerfully implemented this change, thereby
signalling a dramatic change in the government’s invest-
ment policy.
3.2. PUBLIC CAPEX, ESPECIALLY
IN INFRASTRUCTURE
Public capex, especially in infrastructure, is critical to
crowd in private investment. Capex “crowds in” private
investment while revex “crowds out” private investment
as the government borrows more but the pool of savings
does not increase with revex. As shown in Chapter 2 of
this year’s Economic Survey, savings pro-cyclically follow
economic growth. As capex creates growth, the pool of
loanable funds increases, thereby enabling both the pub-
lic and private sector to draw from the same to fund their
investment. This is particularly crucial during downturns
in the economic cycle because risk-aversion in the private
sector increases during downturns and thereby reduces
private investment.
The capex announced by the government focusses on
railways, roads, urban transport, power, telecom, textiles
and affordable housing and draws on the plans laid in the
National Infrastructure Pipeline. The central govern-
ment has also incentivised state governments to focus on
capex through a dedicated scheme for 50-year interest-
free loans for the purpose of capex.
The key investments in infrastructure include the
highest ever outlay of `1.18 lakh crore for the Ministry of
Road Transport and Highways, National Rail Plan for a
future-ready Railways by 2030, development of the West-
ern Dedicated Freight Corridor and the Eastern Dedicat-
ed Freight Corridor, and seven major port projects worth
`2,000 crore in PPP mode. Production-linked incentive
(PLI) schemes have been implemented in 10 champion
sectors to make Indian manufacturers globally competi-
tive, attract investment in these sectors, enhance core
 FOCUS
EDUCATION

UNIVERSITY OF LIFE: THEIR SCHOOL OF

THOUGHT IS BASED ON MUTUAL RESPECT
To have a vision is one, but to have a partner supporting you in that is another. SP Sampathy and his wife Aararthy had their tasks cut
out right from the start, 1960s to be precise. They set up Siva Sivani Public School in Telangana in 1961. “My father would take care of
the marketing and academics, and my mother would take care of the finances. This continued till 2002, when my father was active,” said
Dr Sailesh Sampathy, VP and Dy Chief Executive, Siva Sivani Institute of Management.

S
ailesh’s parents had the passion for imparting
quality education at an affordable cost and their
passion was evident in the phenomenal growth of
the institution - from just 6 students initially to thousands
now in a span of 60 years. The founder of this institute,
Sampathy, had approached a school in Secunderabad
seeking admission for his friend’s son. The Principal of
that school turned out to be the teacher, who taught
him when he was young. However, Sampathy wasn’t
treated with any respect. “My father was both hurt and
angry then. It is often said that decisions should not
be made on an impulse. But not this time. He instantly
resolved to start a school, run it in a manner much more
efficient where people - visitors or parents or employees
or students - would be given due respect,” said Sailesh.
The school, initially, was home to just a handful of
students, who were fed by my parents so they could stay
there for days at a stretch and prepare for examinations.
“We have all worked and lived like an extended family,”
said the VP.
Sailesh has been a student of the Siva Sivani Public School
for 15 years. “In January, 1992, my father woke me up
and said, ‘get ready, we are going to your new office in
an hour’. I was puzzled but I followed his instructions. A
couple of hours later, I was taken to a building at Road No
14, Banjara Hills, Hyderabad, where my father informed
me that he was starting a new branch of the school in
that building and wanted me to help him in setting it up
and running it,” said Sailesh.
There was no looking back. Eventually, Siva Sivani
Institute of Management (SSIM) was set up in December,
1992, with approval from the AICTE as the first B-School
in the then undivided state of Andhra Pradesh. Seminars
and workshops conducted by stalwarts aided Sailesh in
setting up world class paperless classrooms at SSIM more
than two decades ago. Apart from his father, Sailesh owes
his success to his father’s colleague Prof M Kamalakar.
SSIM doesn’t just guide students in matters relating
to academics. “There is a mentor available to support
them in matters beyond academics as well.” Students
are engaged in a number of social activities including
adoption of a few government schools - where they
conduct competitions for those children, distribute Dr. Sailesh Sampathy, VP & Dy. Chief Executive
essential items and teach them too. institutions, leaving a very huge vacuum between
In a decade’s time SSIM has spread its wings across the existing and required infrastructure to support and
globe, through the Centre for International Studies (CIS). sustain education. “At SSIM, students were given access
This wing boasts of different types of collaborations to a lot of facilities like the library, simulation games,
namely student exchange programs, certification training for placements, and virtual workshops. We
programs, immersion programs, dual degree, MBA via started conducting Viva-Voces online, with each panel
credit transfer programs, etc. “Our International partners having external, internal experts and students connected
are Harvard Business School Online, Herzing University, virtually. Our end term examinations are proctored,
USA, Synergy University, Moscow, Alliant International dissuading malpractice,” said Sailesh.
University, California, USA, University of Highlands and SSIM prides itself in getting approval from the AICTE for a
Islands, Scotland, Lincoln University College, Malaysia,” Fellowship Program with 20 students despite the deadly
added Sailesh. virus proving to be an impediment in the education
COVID may have led to the closure of public and private sector.
 THE NEXT INDIA OPPORTUNITY
THE ANNOUNCEMENT
OF PRIVATISATION OF
TWO PUBLIC SECTOR
BANKS IS CONSISTENT
WITH THE NEW
ENTERPRISE POLICY
OF THE GOVERNMENT
OF INDIA. THE
PROCESS, WHEN
TAKEN TO ITS LOGICAL
CONCLUSION, WILL
ENABLE BETTER
ACCESS TO CAPITAL
AND, THEREBY, HELP
PRIVATE INVESTMENT
competencies via transfer of cutting-edge technologies,
create economies of scale, enhance exports and make In-
dia an integral part of the global supply chain. Similarly,
technological infrastructure such as the India Stack, UPI
and the JAM trinity are helping in fostering a better use of
the economy’s resources.
As shown in the MER May 2021, evidence of the posi-
tive effects of public capex are already being witnessed.
The ratio of Gross Fixed Capital Formation (GFCF) to
GDP reached 34.3 per cent in Q4, FY21, among the high-
est in over 26 quarters. This created positive effects on
construction, which grew at 14.5 per cent, private con-
sumption that grew at 2.7 per cent after falling for three
consecutive quarters and contact-intensive sectors that
contracted by only 2.3 per cent after large declines in pre-
vious quarters. CEIC’s seasonally adjusted indicator for
investment reached a 20-year high in January 2021 while
the Purchasing Managers’ Index for Manufacturing had
continually been in expansionary zone from September
2020 to May 2021. All these point to the start of the virtu-
ous cycle with private investment leading the way.
3.3. REFORMS TO
ALLEVIATE SUPPLY-SIDE FRICTIONS
The government post Covid has also implemented poli-
cies to alleviate several supply-side frictions that inhibit
the acceleration of the virtuous cycle. These include
financial sector reforms to enhance access to capital,
labour market reforms to reduce the frictions due to
stringent and complex labour laws, farm bills to enhance
68 Business Today 5 September 2021
access to markets and investment in the agriculture sec-
tor and expanding the definition of small and medium en-
terprises to avoid dwarfism stemming from the nature of
taxpayer incentives provided to small firms.
As the public sector banks represent the bellwether
of the socialist era, the announcement of privatisation
of two public sector banks is consistent with the new en-
terprise policy of the government of India. The process,
when taken to its logical conclusion, will enable better
access to capital and, thereby, help private investment;
see Economic Survey 2020 chapter on Golden Jubilee of
Bank Nationalisation for details. The creation of develop-
ment financial institutions (DFIs) to fund infrastructure
will significantly complement the infrastructure-driven
growth push. The creation of a bad bank for clean-up of
the banking sector heralds an important step in eliminat-
ing the overhang created by disastrous crony lending in
the banking sector.
At the same time, these reforms are all focussed on
bolstering the manufacturing sector, which is critical to
create organised sector jobs and thereby increase aggre-
gate demand in the economy. Logistics and power costs
matter the most for manufacturing firms if they have to
compete in the global markets. The infrastructure push
in roads and railways is intended to reduce logistics costs.
Similarly, infrastructure investment and reforms in the
power sector are critical to reduce power costs for manu-
facturing firms. This focus on aggregate demand through
job creation in the organised sector will help accelerate
the virtuous cycle as the second-round effects embedded
in the virtuous cycle require increase in consumption to
spur further private investment.
4. IN SUM
The transformative change in India’s economic thinking
will provide an impetus to inclusive economic growth via
job creation in the organised sectors. As economic growth
stems from the combination of rate of investment in the
economy (as measured by the ratio of GFCF to GDP) and
productivity (as measured by the incremental capital-
output ratio), the three-pronged approach will enhance
both investment and productivity in the economy. The
twin effects would lead to real growth of 6.5-7 per cent
in FY23 and acceleration towards 8 per cent in the years
ahead as the lagged effects on investment and productivi-
ty manifest fully. As the growth push is done by increasing
both aggregate demand and aggregate supply in the econ-
omy, this growth should be accompanied by the reduction
of supply-side frictions and thereby not accompanied by
high inflation. In sum, this decade will be India’s decade
of inclusive growth.
7(&+12/2*<
 ILLUSTRATION BY ANIRBAN GHOSH

70
 THE NEXT INDIA OPPORTUNITY

DIGITAL
SUPER K.V. KAMATH

CYCLE WILL
FORMER
CHAIRMAN, NEW
DEVELOPMENT
BANK OF BRICS
COUNTRIES

POWER US
AHEAD
THE OTHER GROWTH ENGINES
WILL ALSO FIRE, BUT DIGITAL
TRANSFORMATION WILL CREATE
MOMENTUM TO TAKE GDP GROWTH FROM
7 PER CENT TO 15 PER CENT

I
t’s been 30 years since economic reforms were
initiated. It is the right time for retrospection.
Let us evaluate the three decades of reforms in
three phases. The first part is the 1990s, marked
by struggle and survival and the rise of the knowl-
edge industry. The second part, from 2001 to
2010, is when we reinvented businesses, scaled up
operations and created globally competitive or-
ganisations. This period also saw the start of the
process to build core infrastructure, especially
in areas like ports, roads, telecom and power. The

71
 THE NEXT INDIA OPPORTUNITY
third part, from 2011 to 2020, was when the
country saw a further infrastructure push.
There was focus on green and clean energy,
companies were deleveraged, and became
globally competitive in some areas. It also
saw the start of building up of the digital
start-up ecosystem. Let’s study these three
phases in greater detail.
THE CHRONOLOGY
I returned to India in the middle of the ’90s. And what
I saw was — I will put it in one word — Challenge. There
was a palpable fear in the minds of Indian entrepreneurs.
While the economy was opened up by way of decontrol and
liberalised FDI, Indian companies were not structured or
big enough to meet competition outside or inside. They
could not produce the quality required in a globalised
world. In the financial sector, liberalisation was followed
by some opening up, including new banking licences for
the private sector, but they were all fledgling institutions.
Bankers were fearful about scaling up given high inflation
and interest rates. Commercial banks were mainly work-
ing capital providers and development financial institu-
tions basically lent long-term money. There was hardly
anybody in retail credit.
The milieu remained more or less the same through-
out the decade. But, towards the end of the decade, things
started to change. First, it was the emergence of cheaper
technology. The advent of technology meant that you could
provide, let us say, branchless banking through ATMs, call
centres and a fledgling internet. Retail lending also started
to take place.
These developments brought us to the new millen-
nium. But we were still burdened with non-performing as-
sets (NPAs) or restructured assets. The silver lining was the
rise of technology companies. In the ’90s, there was no IT
player in the list of top 10-15 companies by market capitali-
sation. By 2000, there were at least three.
Another interesting thing happened. Even though in-
flation remained slightly high, the government and the RBI
managed to get interest rates down by almost half. Ten-
year government bond yields suddenly dropped from 11 per
cent to 5.5 per cent. This helped retail lenders, which could
make their products much more affordable for consumers.
For instance, mortgages with 15 per cent interest rates sud-
denly got re-priced at 7.5 per cent. The car loan, priced at 18
per cent earlier, became available at 10 per cent. This gave a
big push to retail lending, which in turn generated momen-
tum for manufacturing companies.
These developments started pushing the economy for-
72 Business Today 5 September 2021
ward. The momentum gave additional income in the hands
of the white-collared workforce, particularly from technol-
ogy areas. A report from a rating agency made a case that
every white-collar job creates four-five additional jobs.
This mass of people with increasing incomes and higher
consumption drove the early part of the 2000 decade. The
industry was quick to respond. It de-leveraged.
In the early part of the 2000 decade, India crossed
the $500 per capita income hurdle. I had seen in my days
across South East Asia (during the ’80s and early ’90s) that
people’s aspirations rose at that level of per capita income.
That, and the drop in interest rates, created a virtuous envi-
ronment. That’s when most of the out-of-the-blocks accel-
eration happened for the Indian industry.
Simultaneously, the government’s infrastructure ini-
tiatives like the Golden Quadrilateral and the Pradhan
Mantri Gram Sadak Yojana paid rich dividends by connect-
ing the India which grows with the India that consumes.
That decade was about industry building scale and capac-
ity, becoming globally competitive, and producing quality
products. The enabling infrastructure was set up during
this period.
The third phase, 2010-2020, was where we actively
thought green and dedicated a much larger amount to in-
frastructure. Corporate India also started talking the lan-
guage of ‘debt is not good’. Technology costs kept falling at
a dramatic pace. We became the world leaders in providing
data of sufficient bandwidth at lowest possible costs. We
have actually made connectivity virtually universal. The
building blocks for the future have been built by Indian en-
trepreneurs. These give us a wonderful springboard to the
next decade and beyond. We have another 25 years of in-
vestments to come in the infrastructure sector. It is an op-
CLEARLY, IN THE
COMING DECADE, WE
WILL BUILD FOR INDIA
AND BUILD FOR THE
WORLD. WE WILL BUILD
IN EDUCATION AND
MEDICINE. WE WILL
BUILD IN E-COMMERCE.
WE WILL BUILD
IN FINTECH AND
DIGITECH
 THE NEXT INDIA OPPORTUNITY
portunity to look at green power, green infrastructure, etc.
Initially, we thought we were laggards in a lot of things
and then we leapfrogged. Again, we are lagging a bit in in-
frastructure, and we will leapfrog. Today, we actually have
the unique ability to reap the ‘fruits of waiting’ because we
can get things done at probably the lowest possible cost and
not be burdened with early-stage cost structures. We also
have matured costs where we can leapfrog very easily. For
example, we now hear of companies talking about solar
harnessing devices at a fraction of the cost a few years ago.
We will probably be the lowest cost providers of electric
power in the years to come.
The other favourable development is de-leveraging. If
one looks at the top 100 companies on NSE or BSE, almost
all of them are de-leveraged. The top 50 companies for
sure. There is something deeper here. In the past, we could
not afford what we borrowed. Today, we need not borrow.
Why? The Indian companies are generating free cash flows
of the order that is enough to meet their brownfield needs,
for sure, and in some cases even the greenfield require-
ments. In any case, the scale has been built. You can expand
your existing facility in a brownfield mode at a fraction of
the cost using your own money and maybe at an incredible
speed compared to 20 years ago when projects used to take
more than five years to complete. Today, hardly any project
takes more than a year.
The manufacturing world has eked out significant pro-
ductivity gains. They were forced to work with fewer peo-
ple. Secondly, they were forced to adopt newer processes,
which harnessed the technology. I would think that the In-
dian industry has managed anywhere between 15 per cent
and 25 per cent productivity gains, which happens once in a
lifetime of an industry. They are at the forefront of process
improvement.
Another post-pandemic revelation is that the people
who are working side by side on the shop floor appear to
be less impacted than the white-collar industry which
worked, to a large extent, from home. My anecdotal pieces
of evidence suggest that the processes set up by blue-collar
enterprises are far more robust than the processes followed
by white-collar enterprises. In the last one-and-a-half
years, they have done a marvellous job.
THE DIGITAL JOURNEY
Interestingly, while infrastructure and manufacturing will
drive us into the next decade, my belief is that the biggest
driver is going to be digital transformation or the ‘digital
super cycle’. The other growth engines will also fire, but the
digital transformation will create momentum to provide
GDP growth going up to 15 per cent from 7 per cent. I would
like to believe that India can grow at 15 per cent. The incre-
74 Business Today 5 September 2021
mental growth will be driven by a digital super cycle.
We often use the word ‘unicorns’. But we need to look
at the entire ecosystem of these companies, from start-ups
to the ones that have scaled up. Some of them will be huge
successes, while some may fail, but the ecosystem is very
critical.
In financial services, the next five years are going to be
very interesting. The time to market for these new players
is very short. So is the time to scale up. The financial sector
incumbents will feel the pressure very quickly unless they
reinvent themselves completely.
When we look at the start-up ecosystem, we need to
ask: do we have the core building blocks of the ecosystem?
First is the connectivity and, more importantly, affordable
connectivity, which is certainly available. Is it ubiquitous
and available to everyone at the same cost? The second is
IT applications. What we are seeing today are only a few fi-
nancial services applications, but I believe that this can be
applied widely starting with education, medicine, e-com-
merce, distribution, and so on. Third, as you go along, you
will see a marriage of virtual and physical because there is a
physical distribution piece in e-commerce which provides
huge employment.
The fourth dimension is the ability to build something
for the world. Today, software built in India can be used
globally. Let me mention two pieces of software we used in
the New Development Bank. We did a Google search for the
lowest cost providers of software services and found cloud
software suite Zoho and Kissflow for workflow manage-
ment. We never knew these companies were from India.
This was about six years back. In the last six years, many
more such companies must have mushroomed in India. I
think this trend will only accelerate.
Clearly, in the coming decade, we will build for India
and build for the world. We will build in education and med-
icine. We will build in e-commerce. We will build in fintech
and digitech.
In this digitisation drive, there is one question that is
often asked. How to create employment for the millions of
people that will join the workforce? The employment will
certainly come from the digital super cycle. This is akin to
the white-collar jobs in the 2000 decade. In the 2021 de-
cade, we will see employees and partners of these platforms
creating new job opportunities. Each job in these areas, just
like in the IT sector earlier, will create four-five opportuni-
ties of various sorts.
In conclusion, I think if we can marshal the power of the
digital super cycle appropriately and keep pushing on infra-
structure and doing all the things that need to be done, we
could unlock India’s higher growth potential. The next 25
years is clearly a period of big opportunity for us.

TALENT IS THE NEW GOLD,
AND CEIPAL THE SOUGHT-AFTER MINE
Think about it. 60%-70% of the expense for a company resides in employee salaries. Needless to say, it constitutes a company’s
largest spend. If you don’t know how to productively engage your employees, you are actually leaving a lot of money wasted
S
ameer Penakalapati, while working as a software
programmer, got thinking about how a project’s
success or failure depends on the team working on
it. Welcome to ‘talent acquisition’! “I then realised that
building teams and talent is something I want to pursue,”
said Sameer, who founded Ceipal in 2014.
When there is a job, how do you find the right fit? How
do you help a client manage the full time equivalents
(FTEs), which measures the workload of an employee? All
you need is a solution powered by artificial intelligence.
“Searching, sourcing and engaging with the candidates
can be done in an automated manner saving you
a tremendous amount of time. Various advanced
technologies today come with filters narrowing down the
list to top 5 or top 10 matches,” said Sameer.
The question now is can Ceipal’s solution overpower
human judgement. “Well, this acquisition of talent based
on the client’s need is done in a fraction of a minute. We
see 50-100 candidates applying for a job. The human eye
then will have to peruse the applications of each of those.
And if there are more than 2 vacancies, then it’s time
consuming. You need a refined list so you can engage
CEIPAL Software Pvt. Ltd. Prashanthi Towers, 3rd floor 8-2-293/82/564, A-43 Road No: 92, Jubilee Hills, Hyderabad - 500 033. Email: contact@ceipal.com
with the candidates and judge better,” said Sameer.
Ceipal’s forte lies in ensuring a diverse workforce setup.
This term ‘diverse workforce’ has a slightly different
meaning for different parts of the world, stressed
Sameer. In India, diversity is defined by gender balance
in an organisation, added Ceipal’s founder and CEO. In
the western world, there is ethnic parity to be considered
too, he added. “In India, Ceipal helps build a corporate
organisation with equal number of men and women
being recruited. We track the data through various
categories - from departments, employees, jobs, etc.
We give insights based on this data. How do we bring
qualified talents to fill the gap? That’s where we come in,”
explained Sameer.
Ceipal has been constantly innovating to remain
one of the leading companies in global HR service
delivery software. Actively engaging with customers,
understanding their business needs, and enhancing our
platform have been the three key elements that have
driven the organisation ahead, said Sameer.
Being market leaders, Ceipal sure knows how to hire
the best talent for its own growth. However, the
FOCUS
TALENT ACQUISITOIN
best talents are always in demand and that is one of
Ceipal’s biggest challenges. “You have to map the
organisation’s goals with the talent goals and the
individual’s goals. This keeps changing and you need to
keep updating this. And that is quite a challenge. That
apart, access to capital is another big challenge,” said the
founder/CEO.
Ceipal Connect is an event witnessed regularly through
all these years. In one of the recent events, Ceipal spoke
of expanding with new sessions focused on contingent
staffing, direct sourcing, total talent management, and
more for suppliers and buyers alike. “There is spectacular
growth in the staffing industry, and the need for talent
today is ever-growing. Companies are looking to augment
their projects and get it delivered faster through their
temp workforce. So, there’s huge demand for contingent
staffing,” said Sameer.
COVID pandemic has created a huge gap between the
talent present in the market and the skills required by
the organisation. Upskilling or changing one’s skill set is
the post-pandemic trend now, Sameer said, adding that
talent is indeed gold.
 THE NEXT INDIA OPPORTUNITY

LOW-COST
HOUSING KEKI MISTRY
VICE CHAIRMAN &

TO DRIVE
CEO, HDFC LTD

GROWTH
THERE WILL BE A STRUCTURAL
LONG-TERM DEMAND FOR
HOUSING AND, THEREFORE, HOUSING
FINANCE IN INDIA

he onset of the pandemic had a devastat-

ing effect on the economy last year. The na-
tional lockdown, uncertainty over vaccine
development and dealing with a completely
unknown event which had no precedent in
the modern era led to an understandable pes-
simism about what the future holds for us.
From an economic perspective, I was confi-
dent we would begin to recover as lockdown
measures are eased. India’s macroeconomic
fundamentals are sound and our inherent
demand cannot be questioned.

76
ILLUSTRATIONS BY ANIRBAN GHOSH
As regards housing loans, there was a general con-
sensus that the recovery would be gradual, but it was
much faster than anticipated. At HDFC, our year-to-
date retail disbursements not only continued to improve
month-on -month, but more importantly, from Septem-
ber onwards, there was consistent growth compared
to the same month in the previous year. In fact, in the
March quarter, we saw 60 per cent growth in individual
disbursements. I cannot remember a full quarter of such
sharp growth in HDFC’s history.
Whilst recurring waves may cause a momentary
pause in offtake of housing loans, the effect will always
be significantly less severe than during the first wave.
Importantly, the recent lockdowns have been localised,
with micro containment zones, and not as strict as last
year, with many sectors allowed to operate. If last Sep-
tember to March is any indication, then one can be rea-
sonably confident that the demand for housing is more
buoyant than ever. With the vaccination drive gathering
pace, I can only see an upward momentum for the hous-
ing sector.
Within the housing and real estate sector, it is af-
fordable housing which has been the driving force. The
salaried and the middle-class are capitalising on the op-
portunities which are being offered. Indeed, it is a ‘Gold-
ilocks Zone’ for the customer as the confluence of low
interest rates (I really don’t think interest rates in India
are likely get lower than this), soft or stable property
77
 THE NEXT INDIA OPPORTUNITY

tered before December 31, 2020, and to 3

per cent from January 1, 2021 to March 31,
2021. Mumbai recorded historic number of
house sale deed registrations. At a broader
level, I would like to elucidate some of the
factors that will ensure long-term growth
of affordable housing:

1 INHERENT DEMAND
First and foremost, India has a huge hous-
ing shortage. There is a tremendous poten-
tial for growth as the penetration level of
mortgages in India is extremely low com-
pared to other countries. The mortgage to
GDP ratio in India is only 11 per cent com-
pared to peer countries’ 20-30 per cent or
advanced countries’ 60 per cent.
Housing is a basic necessity and not a
luxury. Most middle-income people who
take loans to buy a house are genuine end-
users and intend to stay in the house that
they purchase.
Data over the years has clearly shown
that housing loans have much lower de-
faults and, consequently, a better credit
risk profile compared to other personal
loans. Also, demand for housing has proved
to be relatively inelastic even in a higher in-
terest rate environment or during a tempo-
rary slowdown in the economy.
THE AUTHORITIES
COULD REVIEW 2 FAVOURABLE DEMOGRAPHICS
Two thirds of India’s population is below 35
PROCESSES FOR years of age and unlike the west, in India,
MASTER PLANNING people do not buy a home when they are in
AND PROVIDE FOR their 20s. The average age of a first-time home buyer in
India is about 39 years. And with two-thirds of the popu-
UPWARD INCREASES IN lation below 35, what this means is that two-thirds of the
FSI COMMENSURATE population has not even contemplated buying a house yet.
WITH INVESTMENT IN However, over the next 5, 10, 15 years, all these
younger people will get to an age where they will buy a
INFRASTRUCTURE house. Therefore, in my view, there will be a structural
long-term demand for housing and, therefore, housing
finance in India.
prices and continued fiscal benefits and subsidies makes
this the ideal period for homebuyers. The pandemic has 3 IMPROVED AFFORDABILITY
made people recognise the need for additional space at Government support and rising incomes have contrib-
home. They are shifting to larger homes. uted to improved affordability. As per our estimates, this
Further, certain states have provided time-bound is arguably the best period in terms of housing afford-
relief. For example, Maharashtra had lowered the stamp ability in over two and a half decades.
duty from 5 per cent to 2 per cent for properties regis- Around 25 years ago, it would have taken 22 times a

78 Business Today 5 September 2021

person’s annual income to afford a modest sized house
in most cities in India. Today, this has improved to just
3.2 times the annual income.
4 GOVERNMENT INITIATIVES
Due to incentives and ongoing reforms, the housing and
real estate sector has become structurally stronger over the
years. For instance, the affordable housing segment has be-
come a sweet spot for every constituent across the housing
chain due to its incentivisation by the government.
Within the ecosystem of the “Housing for All” pro-
gramme of the government is the Credit Linked Subsidy
Scheme (CLSS), which has been a major success. As on
March 31, 2021, it had benefited an estimated 11.3 mil-
lion first-time homebuyers. In this scheme, the interest
subsidy on the home loan is paid to the beneficiary up-
front, thereby reducing the amount of the loan and, con-
sequently, the EMI. The upfront subsidy under the CLSS
goes a long way in enabling individuals to become home-
owners much earlier in life.
Affordable housing has also been supported by tax
incentives wherein a developer gets 100 per cent deduc-
tion on profits on their affordable housing projects. To
the credit of the government, the timeline for availing
this benefit has been regularly extended.
I now have a few suggestions that may be considered
for the sustainable growth of affordable housing:
1 LEVERAGING TECHNOLOGY
Technology has enabled developers to virtually show-
case their properties. Home loan providers, too, have
leveraged their digital platforms to serve new and exist-
ing customers.
Further capitalising on technology will immensely
help the real estate sector. For instance, progress of proj-
ects can be monitored through digital dashboards, with
data driving key decisions. Funding for projects based on
PROGRESS OF PROJECTS
CAN BE MONITORED
THROUGH DIGITAL
DASHBOARDS,
WITH DATA DRIVING
KEY DECISIONS
5 September 2021 Business Today
construction milestones can also be better monitored
online. This will bring in the much-needed transparency
and accountability and improve cost efficiencies.
With Indian consumers increasingly relying on tech-
nology for their financial transactions, regulators may
consider permitting digital signatures for property-re-
lated documents. It would immensely help homebuyers
complete a digital end-to-end purchase.
2 RAISING RESOURCES
Many NBFCs which were earlier used to provide funds to
real estate developers have withdrawn from the market
partly as a result of the stress they faced and partly due
to the current regulations. Whilst top quality developers
continue to raise funds, the next grade of developers is
unable to borrow money from the formal system. These
developers are, therefore, being forced to resort to rais-
ing funds from real estate funds/private equity investors
whose return expectations are extremely high. This ad-
ditional cost ultimately gets passed onto the customer,
thus making housing more expensive.
3 INFRASTRUCTURAL DEVELOPMENT
A major problem with affordable housing is that if it is
built in far-flung city outskirts where land is cheaper,
there are often no takers, as the necessary social infra-
structure in terms of schools and hospitals may not be
available. In some instances, developers could be of-
fering attractive property prices on city outskirts, yet
people would be reluctant to shift because it would af-
fect their quality of life. Hence, key stakeholders have
to ensure that civic amenities and housing development
happen simultaneously.
The authorities could also review processes for mas-
ter planning and provide for upward increases in FSI
commensurate with investment in infrastructure.
4 MORTGAGE GUARANTEE PRODUCT
The mortgage guarantee product will become an essen-
tial component. It is a product whose time has come and
I am sure in the days to come the India Mortgage Guar-
antee Corporation will deepen its footprint.
THE CONCLUSION
The demand for affordable housing in India is deep and
resilient. With more developers transitioning to the
mid- and affordable segment by providing right sized,
right priced units, I believe that the affordable residen-
tial real estate segment will continue to see strong trac-
tion. The demand for housing is not pent-up demand. It
is structural demand that is here to stay.
79
 ILLUSTRATION BY ANIRBAN GHOSH

82
 THE NEXT INDIA OPPORTUNITY

WE WILL
GET MANISH
SABHARWAL
EXECUTIVE VICE
CHAIRMAN,

MUCH
TEAMLEASE
SERVICES

MORE
OUT OF
WORK
THE COVID-19 PANDEMIC HAS BECOME
THE CATALYST FOR A RADICAL RISE IN
PRODUCTIVITY OF INDIA’S CITIES, FIRMS
AND PEOPLE IN THE NEXT FEW DECADES
83
 THE NEXT INDIA OPPORTUNITY
T
To work in a post-Covid world is what psy-
chologist Robin Hogarth called a wicked
learning environment, one where the rules
keep changing, players keep changing, pat-
terns and relationships keep changing, goals
keep changing and feedback is often inaccu-
rate or delayed.
Hogarth contrasted this with a kind learning environ-
ment where the rules are fixed, players are known, goals are
predetermined, patterns and relationships are predictable
and feedback is often timely and accurate. I make the case
that the Covid-19 pandemic is a tragedy but is also setting
off a super-cycle of a radical rise in the productivity of In-
dian cities and firms as well as their people.
The pandemic has accelerated many opportunities
for India — geopolitical, structural, global and regulatory.
Our geopolitical opportunity arises from the simultane-
ous shift of global economic gravity to Asia and the “China
fatigue” forcing the reconfiguration of supply chains from
just-in-time to just-in-case.
The structural opportunity has three components,
starting with the ‘World of Work.’ Over the last 50 years,
the life expectancy of a Fortune 500 company has shrunk
from 64 years to 14, employment has shifted from a lifetime
contract to a taxicab relationship, and there is capitalism
without capital, where intangible assets matter more than
physical assets. The second component is the ‘World of Or-
ganisations,’ where employers staff themselves in concen-
tric circles, with organisation structures — that became
cylinders instead of pyramids — now becoming Eiffel tow-
ers; where there is more workforce diversity and more vari-
abilisation of fixed costs. The last component is the ‘World
of Education.’ Knowing is useless in a world where Google
knows everything. Employed students in higher education
84 Business Today 5 September 2021
will soon cross full-time students, our children will have
55-year-long careers relative to our parents’ 35 years, and
soft skills will matter more than hard skills.
The global window has multiple components. Capital
markets — a global capital glut that has made fixed income
no income (25 per cent of the world’s bonds trading at zero
or negative interest rates) means investors will overvalue
growth; US policymakers’ short-termism — the Federal
Reserve’s balance sheet is exploding and it is shifting the
goalpost on monetary policy as it manages a $3 trillion fis-
cal deficit. China — its credit to GDP is an unsustainable
300 per cent, many of its big companies are animals bred in
captivity that will not survive in the jungle, and its domestic
consumption is insufficient to act as a substitute for global
trade. Digitisation supercycle — the Covid-mandated
global digital literacy programme has led to the demand
for software exploding and is expected to drive IT employ-
ment from 4 million to 10 million.
But the most important window is our policy window,
especially since the Covid-19 crisis has weakened resis-
tance to long-overdue reforms.
This has interesting implications for work. Vertical or-
ganisations need to flatten so that information and insights
travel faster and without distortion. Fixed costs need varia-
bilisation because business outcomes are no longer guaran-
teed, forecasting has become difficult, and resilience mat-
ters as much as performance. Organisational structures
must reflect goals and strategy rather than drawing circles
around employees. Middle management pruning must
be designed to convert a pyramid into an Eiffel tower. The
increasing effectiveness of online learning means that the
biggest costs for corporate learning, travel and stay, are no
longer excuses for the lack of a vibrant learning ecosystem.
Performance management systems need higher frequency
and more differentiated outcomes. Expect higher flexibil-
ity in working from home, some blunting of business travel,
a spike in women’s participation in the labour force as well
as a higher acceptance of online meetings and paperless
workflows. But the notion that offices are dead may be pre-
mature. About 90 per cent of India’s labour force cannot
work from home simply because their work has a manual
component.
India’s World of Work in the next few decades will be
very different because we finally agree that our problem is
not jobs but productivity. These changes will manifest in
many ways.
More formalised: India’s biggest productivity challenge
arises from its 63 million enterprises translating to only
22,500 companies with a paid-up capital of more than `10
crore. As an entrepreneur, I have learned that we can create

INDIA HAS REMAINED A
NATION OF CORPORATE
DWARFS BECAUSE
OF REGULATORY
CHOLESTEROL IN OUR
LAND, LABOUR AND
CAPITAL MARKETS. BUT
CHANGE HAS REACHED
CRITICAL MASS
two kinds of companies — a dwarf, something small that
will stay small, or a baby, something small that will grow.
India has remained a nation of corporate dwarfs for many
decades since 1947 because of regulatory cholesterol in our
land, labour and capital markets. But change has reached
critical mass, and we don’t need so many enterprises. The
US economy, for example, is eight times the size of India’s
and has only 25 million enterprises. In the future, we will
have much less subsistence from self-employment. About
half of our labour force being self-employed shows not
some hyperactive entrepreneurial gene among Indians but
self-exploitation. We will have a much more formal wage
and employment structure as not everybody can be an en-
trepreneur and not all entrepreneurship is viable. We will
have much larger firms. Right now only 3 per cent of Indian
apparel manufacturers have more than 500 workers, com-
pared with China’s 30 per cent. We will have many more so-
cial security payers. Using this metric, 25 per cent of India’s
labour force is already formal and we can expect this to rise
to 50 per cent soon.
More urbanised: India has six lakh villages, of which two
lakh have less than 200 people, and we only have 52 cities
with more than a million people. China has 375. This poor
urbanisation has created a painful divergence between real
and nominal wages. A while back, a young worker at a job
fair in Gwalior said that to work in Delhi and Mumbai, he
wanted wages that were two and four times higher, respec-
tively, than what he needed to work in his hometown. This
urbanisation apartheid will further be amplified by a re-
gional divide over the next 20 years. Five states in the south
and west of India — Gujarat, Maharashtra, Tamil Nadu,
Karnataka and Andhra Pradesh — will account for half of
the country’s GDP growth but only 5 per cent of population
growth. But change is coming. In the next few decades, In-
dia will have 250 cities with more than a million people. In-
dia can’t be run from Delhi. Power has to be devolved.
5 September 2021 Business Today
More industrialised: India’s prosperity is held back by 11
per cent manufacturing employment and 42 per cent agri-
cultural employment (which accounts for only 14 per cent
of GDP). China became the workshop of the world because
of robust infrastructure, low wages and high foreign invest-
ment. In the future, India will have 20 per cent of its labour
force working in manufacturing. The first wave of this will
be driven by Make-in-India becoming Making-for-India.
Domestic consumption is reaching critical mass as is re-
flected in the concentration of foreign direct investment in
manufacturing for domestic consumption. But these facto-
ries could easily become hubs for exports. An inevitable and
positive consequence of this increase in manufacturing
jobs will be agricultural employment dropping to less than
10 per cent of our labour force — an important reminder of
Nobel Laureate Arthur Lewis’s wonderful advice that the
only way to help farmers is to have less of them.
More skilled: India’s human capital was hurt due to prima-
ry education being neglected after 1947. But this mistake
has been compounded over the years by regulatory choles-
terol and changes in the world of education. Lifelong learn-
ing matters more than knowing because Google knows ev-
erything; soft skills matter more than hard skills; curiosity
matters more than intelligence; and Stanford psychologist
Carol Dweck’s growth mindsets (people who believe ca-
pabilities are like muscles) matter more than fixed mind-
sets (people who believe capabilities are like shoe sizes or
height). Also, changes in the workplace—through automa-
tion, machine learning, artificial intelligence—mean that
the three ‘R’s of reading, writing and arithmetic are key
foundations for new jobs. To be employable, one needs to
add a fourth ‘R’—relationships or soft skills. The National
Education Policy 2020 is a holistic roadmap, but let’s re-
duce the implementation glide path from 15 years to five.
Nobel Laureate Robert Solow once said, countries
don’t need more cooks in the kitchen but a different recipe.
Let’s imagine the World of Work in a $10 trillion Indian
economy: 80 per cent of our labour force works outside
farms; there are 200 cities with more than a million people;
our cities meet the Marchetti constant of a 30-minute work
commute; Chinese factory refugees come to India instead
of going to Vietnam and Malaysia as they do today; policies
encourage formal hiring unlike current labour laws that
are like a marriage without divorce; and a reformed social
security system that covers 60 per cent of workers versus
only 20 per cent now as provident fund and employee state
insurance provide poor value for money.
All this will make India the third-largest economy in
the world by finally leaving Japan, Germany and France
behind.
85
 In EV Press Conference, from left side Shri Ashish Kumar Singh, ACS (HOME), Smt. Manisha Patankar - Mhaiskar, PS (Env & CC), Shri Aaditya
Thackeray, Hon’ble Minister (Env & CC), Shri Sanjay Bansode, Hon’ble Minister of State (Env & CC), Shri A.L. Jarhad, Chairman, MPCB.

DEVELOPING CLIMATE CHANGE RESILIENT

MAHARASHTRA WITH EV POLICY 2021
As we unveiled the electric vehicle policy of the
State last month, I had only one thing on my
mind, climate change and its ever-increasing
impact we are seeing around the world.

W
e were speaking about supply side incentives and demand
side incentives, bringing out to the world the lucrative
offers and incentives it holds for battery manufacturers,
EV manufactures and for those who would buy and use an electric
vehicle. This is probably the most comprehensively researched
and all-encompassing policy for electric vehicles in the country
put together after consultations with all stake holders in the sector.
While it is true that the incentives are highly lucrative and nudge
us to go for an EV, in my mind the question still looms large- “do we
need incentives to survive on the planet?”
Most of Western Europe has faced a heat wave earlier this summer
and now is facing flash floods that have killed hundreds. Germany
and Belgium are under a deluge, while parts of London faced a
thunderstorm on its hottest day of the year, more so, received over
a month’s rainfall in a day. China too, has faced massive floods,
while on the other hand, the USA is facing forest fires and Russia’s
permafrost is melting.
While I prefer not to paint a doomsday scenario, as we work each
day in the Department of Environment and Climate Change on
building hope for our planet, the fact is that climate change is
here- unseasonal rainfall, hailstorm, advancing of seasons and the
extremity of all kinds of weather without a pattern.
Observing this change in our climate closely and seeing the hurdles

Shri Aaditya Thackeray,

Hon. Minister for Enviornment & Climate change, Tourism & Protocol, Maharashtra
it puts up for governance daily, right from compensation enough to put up, not a fight, but an effort of sustainable
for crop damage to flash floods due to more than 200 mm coexistence of the human race on the planet.
of rain per hour is what put me on the track of being the The Environment and Climate Change Department is
environmentalist in politics. working on multiple aspects with all the departments of
My first introduction to EVs was about 7 years ago, while the government for climate change mitigation and action.
on a visit to a country in the West, I came across double- Along with the Department of Forest, we have been
decker buses that ran absolutely without a sound. Much able to identify and safeguard 9800 ha of mangroves
to my joy, I also learnt that these sound free, smooth under the Indian Forest Act, 1927. Likewise, 812 acres of
running giants were emission free as well. Aarey was declared a Reserve Forest in the urban sprawl
As soon as I got back, I requested the then chairman of of Mumbai.
the Standing Committee to work on a proposal for the The Majhi Vasundhara Abhiyaan that focuses on the 5
city’s public buses run by the BEST to be electric. elements of nature, had all the officers of the Government
With our country’s exposure to the electric vehicle world of Maharashtra working on climate change mitigation
being minimal then, it took us a few months to formulate measures right from rainwater percolation and harvesting
the policy, float the tenders and in 2016 we could float the to converting their office lights to ones that use lesser
tenders, initiating a steady stream of an electric best bus electricity. Our commitment to ensuring Maharashtra
fleet that is completely emission free and noise free. leading the automotive sector is firm, so is our capacity to
absorb the automobiles into our markets.
However, we cannot stop at the first few buses. While the industry grows and rapidly changes, it is our
Yes, electrification of our public transport fleet must be solemn duty to ensure that we build an environment
our first focus and that is what I believe at the core of the for the industry to help its silent and easy evolution into
policy. However, it is time now that we build our mindset the next big idea. While the industry evolves and works
to adopt electric vehicles in our lives at a rapid pace, on on the next big idea, we know Maharashtra will have the
a larger scale. Therefore, the policy also has focused its maximum consumption of EVs at a rapid rate. This policy
incentive mechanism on two wheelers, three wheelers, also builds on the customers for their ease in adoption of
four wheelers, charging station infrastructure, battery size EVs.
of the vehicle, a scrappage policy for older vehicles and of The most important commitment, however, is to ensure
course, incentives for automotive manufacturers wanting sustainable growth and development and that is
to manufacture EVs in Maharashtra. where this the Electric Vehicle Policy 2021 stems from.
In the past few decades, Maharashtra has been a leader Maharashtra has been a land for revolutions in thought
in the automotive manufacturing industry. Along with and action, and we intend to lead in the movement to
the manufacturing, come ancillary parts, research and make this planet better for all, hoping that many more
development and supply chains. With also one of the states join in.
most highly urbanized state in the
country, Maharashtra also stands to
have the largest potential customer
base in the country for EV and the
awareness for climate change.
The real impact of the electric
vehicles would be only seen on the
global and local scenario, not just
when we have more vehicles with
green number plates but when
these vehicles are drawing charge
from an ecosystem that is green. The
Government of Maharashtra also
has enacted a policy for renewable
energy adoption in the State, right
from roof top solar to farm fields or
barren land.
We are working on solarizing our
highways and on having floating
solar panels on our lakes that would
help us generate solar energy, at the
same time help reduce evaporation.
We are fully cognizant of the fact
that only adoption of EVs is not
 HIGHLIGHTS OF THE MAHARASHTRA
ELECTRIC VEHICLE POLICY 2021
The announcement of Maharashtra State Electric Vehicle Policy 2021 is a timely and laudable step by the Government of Maharashtra in the wake
of the implications of climate change being faced by all nations including India. While it compliments central govt. FAME II initiative) and creates a
platform for development of electric vehicle ecosystem within the state, it does reveal Government’s commitment towards fulfillment of its duty
towards air quality improvement , developing clean energy and energy security, reducing noise pollution, reducing greenhouse gas emissions,
ensuring good health and well being, and promoting innovation in industrial arena all of which relate to the Sustainable Development Goals.
The Salient Features get incentives upto Rs. 10,000 per charger and Fast Chargers (500) get incentives upto
As a policy, the State strives to ensure faster adoption of sustainable and clean mobility Rs. 5,00,000 per charger. Urban local bodies will be directed to 8dentify the charging
solutions and transform Maharashtra into a leading statef9r EV adoption. Maharashtra locations and encouraged to provide property tax rebates to residential owners for
envisions to be the leading manufacturing and investment hub for the EV ecosystem installing private charging infrastructure within their premises while PWD / MSRDC will
at the global level. identify locations for charging infrastructure installation along highways.
The primary quantified objectives of Maharashtra EV Policy 2021 include accelerated
adoption of Battery Electric Vehicles in the state so that they contribute to 10% of new Supply Side Incentives:
vehicle registrations (~ 3 Lakh vehicles /yr) by 2025; achievement in the six targeted All the benefits under ‘D+’ category of mega projects will be provided to these
urban agglomerations in the state (Mumbai, Pune, Nagpur, Aurangabad Nashik & industries irrespective of location of manufacturing unit in the state.
Amravati), 25% electrification of public transport and last-mile delivery vehicles by
2025; development of Charging infrastructure (~ 2500 nunber of charging stations) Non-fiscal Incentives:
in 7 major urban agglomerates (Mumbai, Pune, Nagpur, Aurangabad, Nashik, Amravati The road tax exemption for electric vehicles is proposed under the Maharashtra EV
and Solapur) and 4 major highways (Mumbai – Pune, Mumbai – Nashik, Mumbai – policy. The policy also looks into the aspect of providing parking facilities as a special
Nagpur, and Pune - Nashik); and ensuring that from April 2022, all new govt. vehicles gesture and accordingly the property developers will be mandated for minimum.
will be electric vehicles. Unified charging system utility app for end consumer will be developed. Mandatory EV
ready parking 20% in residential, 25% in institutional and commercial complexes, and
Proposed Incentives 100% in Government offices.
The incentives address both demand ( vehicles and charging infra.) as well as supply Maharashtra, by rapid adoption of zero-tailpipe-emission and silent vehicles, is going
side’s needs and also have a non-fiscal component. to be the pioneer in the country in contribution towards tackling environmental issues
and climate change.
Demand side Incentives
These include incentives in addition to FAME II (Govt. of India) incentivization on
vehicle battery size at Rs. 5,000/kWh and based on number of vehicles registered
in Maharashtra is planned for manufacturers for one lakh 2-wheelers, twenty-five
thousand 3-wheelers, twenty thousand 4-wheelers, and one thousand public transport
buses; early-bird Incentives of Rs. 5,000/kWh applicable for 2W, 3W and 4W till 31st
Dec. 2021; additional incentive for 2w and 3w only upto Rs. 12,000 per vehicle for
vehicle offering battery warranty for min. 5 yrs and assured buyback upto 5 years;
and scrappage incentives (Rs. 7,000 to 25,000) for 2W, 3W and 4W. The developers
of charging infrastructure will also get incentive whereby slow Chargers (15,000 nos)
 THE NEXT INDIA OPPORTUNITY

CALLING
CAPITAL
CHANGES IN THE EASE OF DOING
BUSINESS CAN GIVE A PUSH TO START-
UPS AND REV UP GROWTH ENGINES

T
he last eighteen months have been a pecu-
liar time for Indian financial markets and its
participants. We saw one of the most serious
market corrections during this period followed
by a strong unidirectional bull run. The way the
markets have moved since the crash of March
2020 has only widened the gap between market
NIKHIL KAMATH
conditions and the broader economy. This is CO-FOUNDER,
not an encouraging sight and is naturally unset- ZERODHA AND
tling for investors and traders. TRUE BEACON

89
ILLUSTRATION BY ANIRBAN GHOSH
Ever since the first wave of the pandemic, India has
seen heavy addition in the number of retail market par-
ticipants. In India, less than 5 per cent of the population
is directly or indirectly exposed to financial markets.
However, this seems to be changing progressively. Ac-
cording to a State Bank of India (SBI) report, the number
of individual investors in India grew almost 14 million in
the FY21. The sustainability of the trend needs to be ex-
amined because extreme volatility might push a majority
of retail participants on the sidelines as there is a sense of
income beyond disposable limits being deployed (in the
stock market). Also, empirical data suggests that market
90 Business Today 5 September 2021
upside has a direct correlation with the number of demat
account registrations.
While equity markets have been optimistic lately, In-
dia’s economic condition has been deteriorating on mul-
tiple fronts. Even before we stepped into the pandemic,
our economy was facing issues around inflation and bal-
ance of trade. The Covid-19 pandemic accentuated some
of these and industrial productivity took a severe hit.
Many things have changed due to the pandemic. One
aspect that has changed completely is trade and com-
merce between nations. The crisis has made economies,
Sanjiv Puri ,
Chairman
both developed and developing, realise and MD, ITC
the importance of
 THE NEXT INDIA OPPORTUNITY
self-sufficiency. This has triggered a transformation on
the globalisation front and compelled leaders of states,
especially the dependant economies, to focus on organ-
ic growth opportunities. The Asian economies which
attained the status of ‘developed’ did so by exporting
heavily. They maintained good association with outside
stakeholders and built sustainable trade relations. This
helped them achieve growth. Going forward, replicating
something similar would be difficult for two main rea-
sons. Firstly, trade dependency with outside stakeholders
will tend to reduce and, secondly, production challenges
may lead to a temporary imbalance in consumption be-
haviour.
India, in its journey to reach the $5 trillion economy
mark, will have to exclusively focus on improving the
overall business ecosystem. The administration needs
to focus on the ease of doing business in order to encour-
age entrepreneurs and investors across the globe to work
with India and in India. The complex systems and pro-
cesses act as bottlenecks when it comes to hosting new
and diversified players. The anti-China sentiment across
the world, due to multiple reasons, has led global powers
to look for the next best alternative. Proactive measures
like the Production Linked Incentive (PLI) Scheme are
noteworthy as they encourage global manufacturers
to get associated with our economy and increase value
creation. We are at the crossroads and accelerating the
change right now will set us up for benefits in the future.
INVESTOR VIEW
The heightened consumer
inflation has begun to un-
settle quite a lot of stake-
TO REACH THE $5
holders in the system. TRILLION ECONOMY
While economists argue MARK INDIA WILL HAVE
whether this inflation cy-
cle is temporary or not, re- TO EXCLUSIVELY FOCUS
tail and institutional inves- ON IMPROVING THE
tors are actively focussed
on smart investing, which
BUSINESS ECOSYSTEM
would help them generate
returns over and above the
upper band of the inflation
range. Ever since the onset of the pandemic, the level of
awareness concerning personal finance has increased.
This is important for our economy given that a large
chunk of the population continues to park its money in
inefficient asset classes that do not return even the aver-
age inflation rate. Investors have also started to actively
seek financial consulting and opt for the formal route. It
is encouraging to see people do their own research before
5 September 2021 Business Today
they commit to an investment.
As far as the target of becoming a $5 trillion economy is
concerned, there are major structural changes that we, as
a nation, need to undertake. Foreign capital is a crucial as-
pect of any developing economy and the more we encour-
age global investors to park their money in India, the eas-
ier it would be for the state to solidify such relationships.
A recent encouraging move is start-ups gearing up for
listing on bourses. This will add diversification to the
markets. In fact, this is one area of progress that we have
made as an economy, as far as the ease of doing business is
concerned. In the past, we have seen local companies un-
willing to list on Indian exchanges due to the complexity
of the processes involved. However, the markets regula-
tor, the Securities and Exchange Board of India, has taken
an initiative to simplify some of these processes and that
has given confidence to younger businesses to consider
public markets as a viable option. Speaking of which, the
Indian private market has taken some positive cues from
the public market, as it has become fairly interesting in
the last few quarters given the surplus liquidity across the
globe. We have seen a rise in the number of deals in the
private markets since the first quarter of last year and at
high valuations. Whether this is an anomaly or a new nor-
mal, only time will tell.
To conclude, I believe that India can very well attain
the $5 trillion mark with focussed efforts towards im-
portant and visible pain points. Given the speculations
around a third wave of the Covid-19 infections, we should
prepare ourselves for any
uncertainty and build ad-
equate buffers. As a com-
munity, it is important to
understand that normali-
sation is a process and not
an event. It is supposed
to be gradual and rush-
ing it with tools such as
external stimuli may not
provide adequate support.
With better healthcare
facilities, it is possible for
us to manage adversities
and keep them manageable. Business houses must also be
held accountable for inflicting any damage on the envi-
ronment as they use societal resources to run their daily
operations. They should take up the initiative of enhanc-
ing the environmental conditions that, in turn, would
benefit all stakeholders. All in all, the pandemic can be
viewed as a good reset button for all of us, allowing us to
re-align our focus.
91
 ILLUSTRATION BY NILANJAN DAS

92
 THE NEXT INDIA OPPORTUNITY

NITIN BANSAL
MANAGING
DIRECTOR, INDIA
HEAD-NETWORKS,
MARKET AREA
SOUTH EAST ASIA,
OCEANIA AND
INDIA,ERICSSON

5G: LET
THE
CHANGE
BEGIN
5G WILL SERVE AS THE CRITICAL
INFRASTRUCTURE TO TRANSFORM
CONSUMER EXPERIENCES AND KICKSTART
THE FOURTH INDUSTRIAL REVOLUTION
93
 THE NEXT INDIA OPPORTUNITY
As the world deals with the Covid-19 pan-
demic, technology, or more specifically,
connectivity, is increasingly supporting
many aspects of our lives at both individual
and business levels. The pandemic has made
us realise the importance of faster, reliable
connectivity to enjoy uninterrupted life and
work. And thus the discussion around the
5G rollout is gaining momentum.
5G is a platform for innovation and because of its socio-
economic multiplier effect, it will serve as the critical infra-
structure to usher in new possibilities for consumers and
industries alike. While 5G services today mainly address
consumer use cases such as enhanced mobile broadband,
its network capabilities go far beyond previous generations
of mobile communications given its higher capacity, reli-
ability, security and lower latency.
The Ericsson Mobility Report, published last Novem-
ber, predicts that 5G networks will carry more than half of
the world’s mobile data traffic in 2026. Enhanced mobile
broadband will be a way for service providers to manage
cost and quality in line with consumers’ desires. More than
70 per cent of consumers expect 5G to provide better per-
formance such as faster speeds, better reliability and lower
latency, according to a study by the Ericsson Consumer
Lab. That will enable consumer offerings around gaming,
video, augmented reality (AR) and virtual reality (VR).
There are more than 160 active 5G networks globally,
with more than 800 commercially available 5G devices.
The subscriber uptake is gaining a healthy momentum and
we foresee that 5G will cover a quarter of the world’s popu-
lation by the end of this year.
94 Business Today 5 September 2021
India too is well poised to launch 5G, once the spectrum
is available, to cater to the mushrooming data demand and
spur digitalisation. In fact, 5G is already transforming con-
sumer experiences across the world and kickstarting the
Fourth Industrial Revolution for early adopters.
So, what is 5G really, and how will it revolutionise the
consumer experience and the enterprise landscape?
GAME CHANGER FOR CONSUMERS
India had the second-highest average monthly usage per
smartphone, at around 15 gigabytes (GB), at the end of
2020. This is expected to surge to 40 GB by 2026. In the ini-
tial stages, 5G will help telecom service providers manage
this ballooning consumption more efficiently. South Korea
launched its first 5G network in April 2019 and today, 53
per cent of its traffic is routed through 5G networks. Their
monthly average data consumption is 26.3 GB per 5G sub-
scriber, nearly three times more than a 4G subscriber’s 9 GB
average. An Ericsson study shows the cost per GB for 5G is
10 times lower than for 4G.
Indian consumers are extremely interested in 5G and,
more importantly, are willing to pay more for the technol-
ogy’s new capabilities, according to an Ericsson Consumer
Study earlier this year. The study also revealed some spe-
cific insights on Indian customers, as follows.
At least 40 million smartphone users could upgrade to
5G within a year of the service becoming available. In fact,
India has the biggest increase in consumers intending to
upgrade, with 67 per cent saying they would take up 5G
once it is available, a 14 percentage point jump over 2019.
They are also willing to pay 50 per cent more for 5G
plans bundled with digital services, but a mere 10 per cent
premium for a standalone 5G connection. But 6 in 10 poten-
tial early adopters expect pricing innovations such as data
sharing between family members or across devices.
Indians with 5G-ready smartphones already spend
more time on enhanced video and multiplayer mobile
games. Consumers are predicted to spend 7.5-8 hours per
week on XR (extended reality) apps — an umbrella term for
immersive technologies such as AR and VR — by 2025.
Ericsson’s “Harnessing the 5G Consumer Potential” re-
port shows service providers globally could generate up to
$131 billion by 2030 in digital service revenue by proactively
bundling and marketing 5G use cases such as enhanced
video, AR, VR and cloud gaming.
Over time, there will be new and exciting innovations in
the spheres of 5G for business and IoT (Internet of Things).
We will likely find the most transformative use cases in
critical IoT, where the technology’s speed, latency and se-
curity will be key. This will highlight 5G’s potential to trans-
form industries and society at large, with use cases such as

STL: Making India’s 5G dream come true!
Badri Gomatam
CTO, Sterlite Technologies Ltd
Mr Badri Gomatam, Chief
Technology Officer at Sterlite
Technologies Ltd, gives a bird-eye
view of the progress in the 5G roll
out and the key role played by the
company as a leading integrator of
digital networks. He shares with
Business Today the optimism of
all the stake-holders in bringing
the new wireless technology to the
country.
Many have argued that India can still
take a while before rolling out 5G. What’s
your take on that?
We are a little bit behind the curve in
rolling out the 5G, but there has been
significant progress. There is ample
reason to be optimistic, as there is
tremendous focus, and a qualitative
change in the way the Indian corporate,
government and operators are working
together, especially on the technology
side of it. Telecom companies like Airtel
and Jio, are making very strong and fast
advancements in the technologies, while
the government has also approved 5G
trials. There is clear signal that spectrum
auction for 5G is being scheduled and
that ambiguity is being addressed in a
sincere way.
What are the things India need to work
on to leverage 5G?
India has all it takes to leverage 5G. It has
an excellent ecosystem of local players
who can handle every nuanced aspect
of 5G deployment, right from software,
hardware, optical, semiconductors &
chips to large scale network integration
capabilities. It has a large and diverse
pool of talent and no weight of legacy
systems. But, the country still has a few
things to work on.
Network modernization is imperative for
launching 5G. Legacy networks will not
be able to cope up with the upcoming,
bandwidth-heavy 5G use cases. There
needs to be concentrated efforts
towards building open, virtualised and
disaggregated networks. The other
important aspect is fibre strategy. 5G
needs fibre and lots of it to support the
kind of data transfer volumes. Our fibre
kilometre (fkm) per capita is an issue but
it is being addressed. Operators are now
spending on fibre in the last five years
and its something we are watching very
keenly.
India also needs to work on spectrum
issues that are still lingering. The
government recently announced the
spectrum auctions in the first half of
2022. This is a good sign, but the pricing
issue still looms. Government can work
with private players to find a win-win
situation.
What is STL’s role in making India 5G
ready or a 5G superpower?
STL has more than a crucial role. It has
FOCUS
TECHNOLOGY
solid local manufacturing capabilities
both on the wireline and wireless side.
On the wireline side, we offer Opticonn,
an end-to-end optical connectivity
solution that allows for faster and
efficient roll outs. Opticonn includes
some of the path-breaking solutions
such as solutions including Stellar, a
bend insensitive, backward compatible
fibre, and Celesta, an intelligent bonded
ribbon cable with a capacity of 6912
fibre.
On the wireless side, we offer solutions
that are open, programmable and
dissagerated. These solutions are
developed through combined efforts
of the open community, STL and its
partners. Our services and system
integration capabilities complement
our wireline and wireless capabilities,
enabling us to build a truly converged
network (i.e. both wireless and wireline).
It is wonderful to see that our integrated
offerings are getting validated by the
government, the corporate and others,
who are investing significantly in this
area. They are requesting us to develop
software, hardware, optical and carry
out the systemic integration and roll out
of 5G in India.
How do you envisage the future of the
industry given the thrust for the ‘Make in
India’ campaign and Atmanirbhar Bharat
vision?
It’s tremendously exciting because
we have the capacity and the ability
to grow into a digital hub for the
world. The technology sector of India
has previously trudged tricky waters
through innovation and courage.
However, any regulatory incentives and
investments on the government side
are welcome. We are here as a global
technology player and we can definitely
say that India is on its way to become an
atmanirbhar digital superpower.
 THE NEXT INDIA OPPORTUNITY
smart manufacturing, smart cities, self-driving cars and
advanced healthcare applications, just to name a few.
Digitisation is happening across all industries and pri-
vate as well as enterprise networks are examples of areas
already leveraging cellular and 5G technologies. This will
open up new material revenue opportunities for telecom
service providers. The more progressive ones are already
starting to experiment and address these opportunities us-
ing 4G, keeping in mind the opportunities that 5G will offer.
For some service providers, fixed wireless access will
be a key growth opportunity to address a new market or un-
derserved customers. Our economic study shows that the
payback time for investments is less than two years when
connecting underserved suburban households using ex-
isting mobile wireless networks. Fixed wireless access has
begun in North America, but we see it gaining momentum
in other parts of the world as well.
We foresee 5G continuing to gain strong momentum
over the next few years, led by North America, where 84 per
cent will have a 5G subscription by 2026. More than half of
north-east Asia, the Gulf countries and western Europe
and 26 per cent of India will have subscriptions by 2026.
SMART ENTERPRISES
The enterprise opportunity for 5G is a bigger potential rev-
enue stream for telecom service providers than the con-
sumer opportunity. This market could be worth up to $700
billion by 2030, according to Ericsson’s “5G for business: a
2030 market compass” report. For India specifically, there
is a $17 billion opportunity for those in manufacturing,
healthcare and public safety, energy and utilities, media
and entertainment, and automotive sectors, among others.
Zooming in on the India opportunity shows 5G will help
service providers achieve incremental revenue growth of 48
per cent. Many 5G applications can transform an industry.
The top five most relevant ones are enhanced video ser-
vices, real-time automation, monitoring and tracking, con-
nected vehicles, as well as hazard and maintenance sensing.
In fact, there are many implementations already today
ZOOMING IN ON THE
INDIA OPPORTUNITY
SHOWS 5G WILL HELP
SERVICE PROVIDERS
ACHIEVE INCREMENTAL
REVENUE GROWTH OF
48 PER CENT
96 Business Today 5 September 2021
around the world, in various industries. As an example
from the mining sector, Sweden’s Telia will build and man-
age a dedicated 5G-ready mobile network for Boliden at Ai-
tik, the world’s most efficient open-pit copper mine. Over
in the UK, BT is providing wireless connectivity for Belfast
Harbor, a major maritime hub in Northern Ireland.
In the manufacturing segment, Telefónica, Ericsson
and Mercedes-Benz are building the world’s first 5G mobile
network for automobile production at “Factory 56” in Sin-
delfingen, Germany. Mercedes-Benz wanted flexible, high
performance, connected infrastructure to replace its tradi-
tional assembly line with automated driverless transport
systems. So, it picked Ericsson’s Private Network solution,
with 5G radio dots for high performance indoors.
The expected results include optimised existing pro-
duction processes through data linking or product tracking
on the assembly line as well as keeping sensitive production
data on-premise. Another aim is to improve the end-to-end
networking across the entire value-add chain, from devel-
opment and design to suppliers, production and customers.
“Factory 56” will be the blueprint for all future vehicle as-
sembly facilities around the world.
The World Economic Forum (WEF) has recognised Er-
icsson’s 5G Smart Factory in Lewisville, Texas, as a global
front-runner in the Fourth Industrial Revolution. The WEF
awarded the factory with its prestigious “Global Light-
house” designation in recognition of Ericsson’s deploy-
ment of next-generation technology, including connected
robots, at the factory as well as the subsequent impact.
These included an impressive 120 per cent improve-
ment in the output per employee and a 65 per cent drop in
manual material handling at the factory when compared to
a similar site without automation and 4IR enhancements.
In fact, nearly all the initial training at the factory, which
opened in 2019, was done with almost no face-to-face inter-
action and, instead, we used VR to connect with colleagues
in our other smart factory 8,000 km away in Tallinn.
These and numerous existing and futuristic 5G use-
cases can usher a paradigm shift across enterprises, helping
them become more efficient, future-ready and sustainable.
The possibilities that IoT, 4G and 5G create for enterprises
will not only fast-track enterprises meeting the demands
of the new world but, more importantly, contribute to the
socio-economic development of India.
Given the Indian government’s focus on ‘Digital India’,
I see a huge opportunity for 5G in India. 5G must be consid-
ered a critical part of national infrastructure, every bit as vi-
tal as trains and roads. With the availability of spectrum for
5G trials and Indian operators preparing to introduce the
technology, I believe Ericsson has a role to play in helping
Indian operators move seamlessly from 4G to 5G.

National Institute of
Fashion Technology
(NIFT)
N
ational Institute of Fashion Technology (NIFT)
is a leader in fashion education, integrating
knowledge, academic freedom, and creative
thinking. NIFT, set up in 1986 under the aegis of
Ministry of Textiles, Government of India, is an
autonomous statutory body governed by the NIFT
Act 2006.
Currently, NIFT is ranked at 9th position in fashion
institutes around the world. Most revered fashion
designers and top industry professionals in fashion
world proudly call NIFT their alma mater. To meet
the new requirements of the ever-changing
fashion industry NIFT-Industry-Academia interfaces
throughout the course provide a cutting-edge
learning experience to the students.
The academic strategy of NIFT embraces a global
approach. NIFT has strategic agreements and
partnerships with about 26 leading international
fashion institutes & organisations that share the
same academic direction, integrating NIFT students
with the global mainstream of fashion. NIFT
provides an excellent opportunity to its students to
experience ‘study abroad’ options through exchange
programmes. NIFT students at all campuses are
encouraged to participate in international events
and competitions. The students have participated in
several prestigious international competitions such as
Wool Mark, Design competition organized by Beijing
Institute of Fashion Technology (BIFT), Beijing,
Republic of China, Fashion Week 2017 Paris, Sweden
Shri U P Singh, Secretary(Textiles) Lighting the Inauguration lamp during NIFT Convocation 2021
India Novel Memorial Wall Painting organized by
Swedish Embassy, New Zealand Runway organized by
New Zealand Embassy, Red Dot Award,Wuhan
International Competition, China, World of Wearable
Art (WOW) Competition.
The Institute also attracts international students
who come and experience its academic and cultural
richness. NIFT faculty is the strategic enabler in
transforming the vision of the Institute into reality.
NIFT through its vision and
conviction plays a pivotal role
in shaping the future of Textile
Industry in India through its
academic practices encompassing
knowledge, skill, and practical
applications “
Shantmanu, Director General
Trained at some of the leading fashion institutes
of international repute, the faculty brings to the
classroom professional capabilities, wide exposure
and years of hands-on industry experience.
In recent times NIFT has become synonymous in the
field of fashion by taking up mammoth projects for
FOCUS
TEXTILES
the country . The Project India Size – is taken on to
develop size charts for Indian body types considering
the diversity, A Knowledge Portal for Textiles, Crafts &
Clothing to preserve and promote Indian textiles and
crafts ethnicity and geographic diversity. VisioNxt is
trend insight and Fashion Forcasting lab to forecast
India’s fashion trends. Textile and Craft repository is
being developed by NIFT as aknowledge portal for
textiles, crafts & clothing to preserve and promote
Indian textiles and crafts. The other prime projects
being undertaken by NIFT are setting up Design
Resource Centres at Weavers Service Centres for
DC (Handlooms), Development of Digital Platform
for Craft Based Enterprises project for Ministry of
Electronics & Information Technology (Meity). NIFT
shall be offering courses in the field of Technical
Textiles also.
As leading agents of change, over 25,500 NIFT alumni
are working with the industry in key decision making
positions and are instrumental in shaping the future
of fashion business. NIFT alumni are also actively
taking their knowledge to the grassroot levels,
working towards enhancement of the craft pockets
of the country.
During the current pandemic time NIFT took
proactive steps to transact its curriculum completely
through online mode using various platforms. Over
100 webinars have been conducted in last few
months, including several with international experts.
The Examination and evaluation were
conducted through online platforms. The
PhD defence were conducted online.
Admissions for year 2020 & 2021 were
conducted through online mode including
live counselling.
 FOCUS
TEXTILES
CRAFTING GROWTH TOGETHER
The Office of Development Commissioner for Handicrafts, under the Ministry of
Textiles, is on a mission mode to bring about resurgence in the handicrafts sector while
empowering artisans across the country
P
laying a momentous role in India’s economy,
the handicrafts sector provides employment
to a vast segment of craftspersons in rural &
semi urban areas and generates substantial foreign
exchange by way of exports for the country, while
preserving its cultural heritage. The sector supports
not only the existing set of millions of artisans spread
over the length & breadth of the country, but also
the increasingly large number of new entrants in the
crafts activity. The significance of handicrafts also
lies in the use of environment-friendly zero-waste
practices in their production.
But the sector has also its share of problems
such as low capital, inadequate exposure to new
technologies, and absence of market intelligence
faced by artisans. Removing all such bottlenecks, the
Ministry of Textiles has catapulted the sector to a fast
trajectory of product development, domestic sales
and exports. It has managed to reposition handicrafts
through aggregation, financial support and market
access, in response to PM Modi’s clarion call for ‘Local
Goes Global: Make in India for the World’.
In sync with the priorities and thrust of
the Ministry of Textiles, the office of
Development Commissioner (DC)
-Handicrafts has implemented various
schemes for the further growth of
handicrafts sector under National
Handicrafts Development
Programme (NHDP) and
Comprehensive Handicrafts Cluster
Development Scheme (CHCDS).
The NHDP has adopted a holistic,
pro-active, technology driven
and sustainable development
approach to make handicrafts sector viable. At
the same time, CHCDS has done well to develop
artisans’ concentrated areas through mega clusters
and special projects across the country. These areas
have turned out to be highly productive centres for
products, increase in production of cluster artisians,
thereby substantially contributing to the export of
handicrafts.
With the objective to maximize the potential of
handicrafts, DC (Handicrafts) has taken up a number
of other initiatives, which are as follows:
Relating Textiles to Tourism
To achieve simultaneous promotion of crafts and
tourism, Crafts Tourism Villages have been developed
where artisans live and work with immense
opportunity to sell products thereby ensuring
their livelihoods. The villages comprise areas that
are surrounded and connected by major tourist
destinations/circuit and have a traditional art and
craft heritage that attracts tourists and design
innovators. All this helps in sales of their handicrafts
products at work place.
Creation of Producer Companies
The Ministry has set up a network of producer
companies supported by access to finance and
markets. So far, 56 producer companies have
been formed throughout the country to bring in
professionalisation of artisian in the handicrafts
sector.
Providing Direct Market Access to Weavers/
Artisans
Government e-Market Place (GeM) has initiated a
process to onboarding weavers/artisans to make
them sell their products directly to the ministries/
government departments. Artisan may register
themselves by using their
identity cards issued
by the office of
DC (Handicrafts),
and field officials
have been nominated to facilitate artisans to register
on Gel portal. Training has also been imparted to
these officials by GeM team to assist artisans.
E-Commerce Platform
To provide a direct marketing platform to artisans/
weavers, the Ministry of Textiles is developing
an e-commerce platform through Digital India
Corporation, Ministry of Electronics and Information
Technology. In the first phase, 100 handicrafts
clusters are being selected throughout the country
for registration and uploading of photographs of their
products on e-this commerce portal with the help of
Common Service Centres (CSCs). The clusters will be
mapped with nearby CSC for providing handholding
support to artisans.
Thus, by harnessing a wide range of creative skills of
artisans in the country, DC (Handicrafts) aims to make
this sector a multi-billion-dollar marketplace with
the right support and business environment. The
organisation aims to promote India’s craft heritage,
replete with awesome regional diversity, which
presents the country with a distinct edge in global
markets.
DEVELOPMENT COMMISSIONER (HANDICRAFTS)
Ministry of Textiles, Government Of India

T
he Export Promotion Council for Handicrafts
(EPCH), established in the year 1986-87, has
been making a seminal contribution in the
promotion of the export potential of handicrafts.
Significantly, the Council has created necessary
infrastructure as well as marketing and information
facilities, which are availed by exporters of handicrafts.
The Council has 10 offices all across the country with
head office at New Delhi and closely working in craft
clusters like Jaipur, Jodhpur, Moradabad, Narsapur,
Saharanpur and North East region to name a few.
GROWING SIZE OF THE HANDICRAFTS INDUSTRY
The exports of handicrafts for April-March of the
financial year 2020-21 stood at Rs 25679 crore
registering a marginal growth of 1.62 % the same
period in the preceding year (2019-20). Over the
last ten years, the exports of handicrafts has grown
at a Compounded Annual Growth Rate (CAGR) of 8%
from Rs. 12,975 crore in 2010-11 to Rs 25,679 crore
in 2020-21.
HELPING THE SECTOR MEET GLOBAL STANDARDS
The wooden handicrafts sector faced existential crises
in 2013 as due diligence certification for legality of
wood used in production of wooden handicrafts was
sought by European Union. The council proposed
creation of the indigenous standards i.e. VRIKSH –
Indian Timber Legality Assessment and Verification
Scheme which is now recognised in 183 CITES
signatory countries and has over 600 VRIKSH certified
Nurturing Handicrafts
Fostering Growth
exporters in the country. Moving forward, keeping in
view the Sustainability Development Goals (SDGs) of
United Nations’, the VRIKSH standards have also been
mapped with the SDGs.
Over the last 10 years, the EPCH has been keeping
a close tab on product and design development
specifically for overseas markets considering the
evolving tastes and preferences of the customers.
It has been helping the entrepreneurs use modern
design tools, production techniques and digital
marketing operations, driving growth in the sector.
Further, the entrepreneurs have been exposed to
various training and capacity building programmes
run by the council in the areas of compliance, export
procedures, product development, packaging etc.
The registered exporters with the council have
increased from 6000 in 2010-11 to over 10,000 in
2020-21 over the last decade.
EPCH was instrumental in launching Indian
Handicrafts & Gifts Fair now known as IHGF Delhi
Fair in 1994 for foreign buyers which today (more
than 5 editions down the line) is the world’s largest
congregation of handicrafts exporters under one roof
certified by Limca Book of Records organised at India’s
State of the art exhibition complex i.e. India Expo
Centre & Mart at Greater Noida.
The EPCH has been helping exporters meet global
benchmarks in terms of quality and designs retaining
the inherent strength of handicrafts which depicts
Indian designs, colours, motifs and patterns. For
FOCUS
TEXTILES
EPCH
instance, the normal metallic vases being made in
Moradabad has now been converted into beautiful
lamp and lighting items.
In order to bridge the skill gap in the Handicrafts
and Carpet Sector Handicrafts & Carpet Sector Skill
Council (HCSSC) was set up to provide National
Occupational Standards based skilling in the country.
Centre for Handicrafts Exports Management Studies
(CHEMS) was launched to ensure trained manpower
and entrepreneurs for the handicrafts sector and
to facilitate development of new products and new
designs.
Beating the pandemic blues, the council organised
the first virtual international B2B fair in June 2020
and since then 10 virtual events including 6 virtual
exhibitions and 4 Buyer Seller Meets have been
organised during these Covid times. The exports of
handicrafts registered a growth of around 1.62%
in 2020-21. It is important to note that in the first
six months of 2021 there was a negative growth
of (-) 23%, however the sector bounced back and
registered a growth of 26% in the next six months.
The EPCH is harnessing the growth potential in
exports of handicrafts and the sector may grow
between 15 to 20% in the next five years to double
the exports from the current level of Rs 25,000 crore
to cross Rs 50,000 crore.

HANDLOOM EXPORT PROMOTION COUNCIL
H
andloom Export Promotion
Council known as HEPC under
the aegis of Development
Commissioner for Handlooms,
Ministry of Textiles, Government
of India was constituted in the
year 1965 to promote export of
handloom products from India.
Presently HEPC has about 1500
member exporters spread across the
country. The main objective of HEPC is to
support Handloom exporters, mainly assisting
and providing required support and guidance to the exporters for trade
promotion and international marketing. HEPC has its head office at Chennai and
regional office at New Delhi. HEPC has opened a liaison office at Karur, Panipat
and help desk for North East at Guwahati to extend handholding support to NER
and has started functioning from the campus of IIHT/ WSC Guwahati.
The major handloom export centres are Karur, Panipat, Varanasi, Kannur, etc.
The main product categories and products exported are Home Textiles (including
bed linen, table linen, toilet and kitchen linen, towels, curtains, upholstery, etc.),
Floor coverings (including rugs, dhurries, floor mats, bath mats, etc.), Clothing
accessories (stoles, scarves, etc) and fabric (sarees, terry towels, fashion fabrics).
Handloom product exports are actively happening and has been hovering around
350 MUS$ during last 5 years with an exception during 2019-20 & 2020-21,
wherein, the exports declined to 315.62 MUS$ and 22.65 MUS$ respectively
due to the COVID-19 pandemic issues. India is the only country in the global
trade having a sizeable quantum of exports of handwoven products despite
severe competition not only from the competing countries but also from
mechanised sector within the country.
Activities of HEPC
Towards the object of the Council, HEPC has, with the
support of the Development Commissioner for Handlooms,
initiated many new activities such as giving awards to the
top most exporters, bringing out various colour catalogues
synchronizing the Pantone numbers to guide the exporters in
following the colour and trend patterns prevailing in overseas
markets, bringing out various publications under grant from the
ministry for the benefit of handloom industry. HEPC in its endeavour
to promote export of handwoven products from India organises participation
When the World Starts Dreaming, Our Hand Starts Weaving
FOCUS
TEXTILES
in around 20 international events across the globe every year. Besides, it also
organises Reverse Buyer Seller Meets in India inviting Buyers from all over the
world.
Due to the prevailing travel restrictions induced by the Covid-19 pandemic, many
physical fairs around the world are either getting cancelled or being postponed
to next edition. In order to overcome this situation, HEPC has been organising
virtual events focussing different market regions. During 2021, HEPC has
organised 12 virtual events targeting trade visitors of Sweden, Denmark, Italy,
France, Spain, Japan, USA, Canada, Australia & New Zealand and South America.
HEPC has been taking every possible steps to provide market access opportunities
to its member exporters through its virtual and physical events. Of which the
following events assume significance since it is organised coinciding on National
Handloom Day. Coinciding National Handloom Day, Handloom Export Promotion
Council under the Ministry of Textiles, Govt. of India organised an exhibition titled
“Celebrating MyHandloomMyPride on National Handloom Day 2021” at Moti
Bagh Club House, New Delhi. The event has the participation of 22 exhibitors
comprising of Padmashree Awardees, National Awardees, Cooperatives, Producer
Companies andWeaver Entrepreneurs
Virtual ITSF
HEPC has also organised an exclusive virtual event to show case Traditional
Textiles of India coinciding with the National Handloom Day- August 7th.
This event is held for 7 days (7-13, August 2021) and has the participation of
57 exclusive handwoven manufacturers / exporters/ cooperatives/ National
awardees / Clusters/ India Handloom Brand (IHB) holders from all over India.
The event is organised with the grant from O/o. Development Commissioner
(Handlooms), Ministry of Textiles, Govt. of India
Around 220 trade visitors from our neighbouring Asian Countries such as
Bangladesh, Malaysia, Singapore, Sri Lanka, Nepal, Bhutan and
Myanmar have registered for attending the virtual event. The
response from the exhibitors and the international visitors are
highly encouraging and this will certainly open the doors
for Handloom fabric manufactures to International market
and help in increasing the export of handwoven products to
these countries
HEPC takes all possible initiatives and strives to achieve the
export target set by the Hon’ble Prime Minister, and we will
continue to provide our support to all handloom manufacturers
to bring our product from Local to Global and “My Handloom My Pride”
awareness to make it happen in the Indian and International Market.
FOCUS
HARYANA

‘‘ Time has taught us that we must make

‘local’ the mantra of our lives. I request people
to buy and endorse local products. We have
done this before also with khadi and it worked
very well. ‘‘We have to be ‘vocal’ for ‘local’.
Not only we have to buy local products, but
we also have to promote them.I have full
FRQÀGHQFHWKDWRXUFRXQWU\FDQGRWKLV··
- Narendra Modi, Prime Minister

HARYANA
Creates Eco-System for
Growth of MSMEs
R iding the crest of fast-paced economic growth, Haryana has emerged as an economic power house. Out to tap
the potential of Micro, Small and Medium Enterprises (MSMEs) in employment generation, economic revival and
boosting exports, the Haryana Government, led by the Chief Minister, Sh. Manohar Lal, has donned the mantle of a
IDFLOLWDWRUSURPRWHUDGYLVRUDQGÀQDQFHUWRHQVXUHWKHLUKROLVWLFJURZWK
All stops have been pulled to handhold the existing MSMEs, create new units, enhance their competitiveness,
and integrate their products with domestic as well as international supply chains to create a wider market for them.
MSMEs constitute the cornerstone of Haryana’s policy on industrial development. A robust policy framework, backed
by developmental interventions and setting up of dedicated directorate, has succeeded in creating an eco-system
conducive to their creation, growth and success.
The visionary guidance of the Prime Minister, Sh. Narendra Modi, and able leadership of the Chief Minister has
enabled the state to pursue policies to ensure all-round economic development with effective implementation at the
ground level. Translating the vision of the Chief Minister to have a dedicated institution providing across-the-board and
all-level facilitation to the MSMEs, the State Government has set up a Directorate of MSME.

‘‘The Haryana Government plans to

set up a large number of clusters at the
district level under MSMEs so as to provide
maximum employment opportunities to the
youth of the state. With this scheme, more
marketing can be done at less cost”
- Manohar Lal, Chief Minister
 This makes Haryana take a seat ‘Haqdarshak’ company. In order to IDFHLQVXFKÀHOGVDVWHFKQRORJ\PDUNHW
on the high bench of exclusive group promote MSMEs apart from large facilitation support etc. Some of the key
of leading states like Uttar Pradesh, industries, many important concessions developmental interventions are:
Madhya Pradesh, Karnataka, Bihar and have been given for investors under the
Haryana Enterprises and
Tamil Nadu which have turned focus on ‘Haryana Enterprises and Employment
Employment Policy 2020
the development of MSMEs by setting Policy-2020’.
With a view to enabling the
up dedicated state agencies. Notably, With the help of e-commerce
MSMEs to ramp up production and
Haryana has been ranked among the companies like ‘Walmart’, the State
scale up businesses, the Manohar Lal
top three fastest growing states as per Government will help in displaying
Government launched the path-breaking
the GSDP growth rates data released by the products of traditional weavers
Haryana Enterprises and Employment
Ministry of Statistics and Programme of rural areas, handlooms and other
Policy (HEEP) 2020. It replaced the
Implementation (MoSPI) in 2020. handicraftsmen at the international level.
very successful Enterprise Promotion
Red carpet of incentives Robust Policy Framework 3ROLF\  ZLWK QHZ DQG VFDOHG
The Haryana Government has rolled Several interventions have been up incentives for the MSMEs. It has
out a red carpet of incentives and taken made to fuel growth of the existing focus set on employment generation,
several initiatives to ensure holistic MSMEs as well as to create new entrepreneurship development, exports
development of the MSME sector in the enterprises. These have been so designed promotion and strengthening of the
state. “In view of the important role of as to equip the MSMEs to address they supply chain and infrastructure facilities
MSMEs in the economic development
of the State, we have extended several
concessions. These include state
guarantee for bank loans to MSMEs from
Small Industries Development Bank of
,QGLD À[LQJ SRZHU UDWH DW 5V  SHU
unit for agriculture-based industries up
to 20 KW, and pre-fabricated housing
for labourers in the factories itself,” the
Chief Minister said.
Besides, the State Government plans
to set up a large number of clusters for
MSMEs at the district level to provide
maximum employment opportunities to
the youth of the state. With this scheme,
more marketing can be done at less cost.
Another landmark initiative seeks
to create a pathway for the MSMEs
products to enter the global market.
The State Government has signed
an MoU with ‘Walmart Vriddhi’ and
across the state to build and promote
‘Brand Haryana’. HEEP 2020, in
conjunction with Haryana’s MSME
Policy 2019, ensures that state support
is provided to the MSMEs to facilitate
their all-round development.
Technology Upgradation
Upgrading technology is of essence
in industry, especially in MSMEs.
With a view to enabling the MSMEs to
technologically upgrade themselves,
Haryana has sharpened focus on the
‘Cluster Development’ approach. The
state is an active advocate and propagator
of Government of India’s MSE-CDP
scheme for the creation of Common
Facility Centres (CFCs) in the state. The
Haryana Government is actively engaged
in implementation of six projects under
the scheme with a commitment of Rs
67 crore by the Government of India out
of which grant-in-aid of Rs 25 crore has
already been received.
Taking further the approach of Cluster
Development, the state has enhanced
VXSSRUWXQGHUWKHÁDJVKLS¶0LQL&OXVWHU
Development Scheme’ from Rs 1.8 crore
to Rs 4.5 crore as part of the Haryana
Enterprises and Employment Policy
2020. While interventions under the
scheme have already been undertaken
in more than 40+ clusters since its
inception, interventions in 16 clusters
have been initiated in the last year
only, after the inception of dedicated
directorate. So far, the State Government
has released support of Rs 31 crore for
the creation of CFCs under the scheme.
Development of new enterprises
Under the leadership of the
Chief Minister, the State Government
is conceptualizing one-of-its-kind
Block Level Enterprise Development
Programme with renewed focus on
new the creation of new enterprises.
It aims at designing and implementing
developmental interventions focused on
micro and small enterprises at block
level to give a thrust to sustainable
employment and entrepreneurship
opportunities.
Special emphasis has been laid on
the promotion of locally relevant products
and on providing an opportunity to state
farmers to broaden their horizon and
turn from producers to processors. While
preliminary study has been completed
to identify focused products across 140
blocks in Haryana, detailed plan for
implementation of the programme is on
the anvil.
To create a holistic food processing
eco-system and enhance farmer income
in Haryana, Haryana is implementing
its ambitious Haryana Agri and Food
Processing Policy 2018. Under the
policy, 15 projects worth over Rs
195 crore have been approved with
government grant component of Rs 28
crore, and private participation of over
5VFURUH7KHVHSURMHFWVZLOOEHQHÀW
over 8,000 farmers in the state and help
generate direct employment for over
2,000 persons.
Prime Minister’s Employment
Generation Programme (PMEGP) is one
of the leading programmes to promote
rural employment in the country. The
Directorate of MSME, being the nodal
State Government agency, is leading
implementation in the state. Under
the scheme, more than Rs 65 crore
has been disbursed as margin money
generating employment for more than
16,000 persons in rural Haryana.
As part of the HEEP 2020, the State
Government has also launched ‘Haryana
Gramin Udyogik Vikas Yojna’ to promote
rural entrepreneurship and balanced
regional growth, the scheme offers an
array of attractive incentives i.e. Capital
Subsidy, Interest Subsidy etc. for micro
enterprises in rural areas under the
jurisdiction of gram panchayat.
State collaborations
The Haryana Government has
been tirelessly working to enhance its
outreach, to broaden the base of the
EHQHÀFLDULHV DQG WDNH WKHP RQERDUG
with its initiatives, schemes and policies.
In order to amplify these efforts, the
State Government, under the guidance of
the Chief Minister has formed strategic
partnerships with various leading
national and international players
to assist the state in facilitating and
strengthening different aspects of an
enterprise’s value chain.
 FOCUS
Some of the key collaborations across HARYANA
various functional areas will facilitate
MSMEs access to markets, technology, 6XFFHVV6WRU\6KHHW0HWDO&OXɚHU$PEDOD
ÀQDQFHDQGH[SRUWSURPRWLRQ The cluster approach adopted by the Haryana Government has yielded rich
With a view to initiating focused dividends. Several success stories emanating from this approach are doing the
conversations on digital enablement, rounds. The Ambala Sheet Metal cluster is one of them.
empowerment and enhanced The Ambala Sheet Metal Cluster has about 800 units, 90% of them being
market access for MSMEs, the State micro units across the value chain. These units are involved in the manufactur-
Government has signed a Memorandum LQJRISURGXFWVVXFKDVIXPHKRRGODEWDEOHODPLQDUDLUÁRZELRVDIHFDELQHW
of Understanding (MoU) with leading KRVSLWDOIXUQLWXUHK\GUDXOLFDQGÁXLGPDFKLQHU\ODEHWF
national and international e-commerce Before the intervention, the cluster units were primarily dependent on ob-
players–-eBay, Power2SME and solete technology for cutting of the sheet which is the most important activity
TradeIndia. Through these collaborations, in the value chain. Also, the old machines resulted in massive wastage of raw
the State Government intends to provide material (sheets) pushing up the cost of production. Also, manual processes led
handholding and capacity building to inconsistency in the quality of the products which increased rejection rate of
support to over 3,000 MSMEs, at WKHÀQDOSURGXFW
district-level, across Haryana.
In order to facilitate MSMEs access
Cluster Intervention
As part of the intervention under the State Mini Cluster Development Scheme,
to newer markets, the State Government
cluster units joined hands to install latest Laser Sheet Metal Cutting Machine as
has collaborated with Walmart and
the Common Facility Centre, which is a unique facility in the whole industrial
Flipkart to support MSMEs to grow their
area of the Ambala district.
domestic and global markets through the
Walmart Vriddhi Supplier Development %HQHÀWVWRWKH&OXVWHU
Program (Walmart Vriddhi). Due to availability of such high-end technology in the industrial area in Am-
In order to fuel MSME growth and bala, MSEs could obtain a prestigious order from the Yamunanagar Rail Coach
development by providing enhanced Factory for manufacturing parts of the rail coach gates. The facility has enabled
DFFHVVWRÀQDQFHWKH6WDWH*RYHUQPHQW the MSMEs in the cluster to diversify their product offerings and also created new
has tied up with National Stock market opportunities for them.
Exchange (NSE) and BSE to assist
small and medium enterprises in raising Council (HMSEFC) was constituted. promote formalization of the sector and
capital through the SME exchange, i.e. The Union Ministry of Food provide support to Farmer Producer
NSE Emerge and BSE SME, respectively. Processing Industries, under the Prime Organizations, Self-Help Groups as well
Additionally, the State Government Minister’s visionary Aatmanirbhar Bharat as Producers Cooperatives along their
has also partnered with SIDBI with the Abhiyan, has launched a progressive entire value chain. Applications of 700+
objective of development of the MSME Pradhan Mantri Formalisation of Micro enterprises are being processed under
ecosystem in Haryana, particularly food processing Enterprises (PMFME) WKHVFKHPHLQWKHFXUUHQWÀQDQFLDO\HDU
focussing on areas such as equity Scheme. The scheme aims to enhance Given the policy interventions and
support, interest subvention, resolution competitiveness of existing individual personal interest the Chief Minister has
of stressed MSMEs, etc. micro-enterprises in the unorganized taken in their growth, MSMEs can look
7R SURYLGH ÀHOGOHYHO KDQGKROGLQJ segment of the food processing industry; forward to a great future in Haryana.
facilitation & advisory support to MSMEs
and traders, a network of District MSME
Centres (DMCs) in each district has
been set-up under the Directorate. This
shall help in strengthening the State’s
connect with the MSMEs and widen
the communication channels for faster
resolution of matters of importance.
The State Government has launched
a unique online registration portal, i.e.
Haryana Udhyam Memorandum (HUM),
for all the industrial enterprises registered
in the state of Haryana.
To facilitate recovery of delayed
payment of micro & small enterprises
(MSEs) of the State from their buyers
located anywhere in India, Haryana
Micro and Small Enterprises Facilitation
 ILLUSTRATION BY ANIRBAN GHOSH

110
 THE NEXT INDIA OPPORTUNITY

THE NEXT
CHAPTER RITESH
AGARWAL
FOUNDER &

IN THE
GROUP CEO, OYO

START-UP
GROWTH
STORY

AS THE START-UP INVESTMENT ECOSYSTEM

EVOLVES POST-PANDEMIC, ANGEL
INVESTORS, GLOBAL PLAYERS AND
ENTREPRENEURS-TURNED-INVESTORS
WANT TO BE PART OF THE NEXT BIG MARKET
111
 THE NEXT INDIA OPPORTUNITY
I
India’s start-up ecosystem is a global
success story where the synergies and ac-
tive collaboration across geographies have
contributed significantly. The country’s
start-ups have even defied all odds brought
on by the Covid-19 pandemic. Many Indian
tech start-ups continue to attract a rush of
capital, with a record number reaching uni-
corn status. In the first half of 2021, Indian
start-ups are estimated to have received
$12 billion in about 382 deals, the highest
in the past five years. So, what’s making us
shine? In my opinion, it’s a combination of
factors like digital push to get customers
online, high liquidity in the markets, and
a series of IPO announcements from lead-
ing start-ups. The recent Zomato IPO is the
inflection point that all of us were waiting
for. As India remains the go-to-market for
investors due to its sheer size, the coun-
try’s potential for technology-led business
has led to the emergence of valuable tech
start-ups.
SUSTAINING BEYOND THE CRISIS
The period between 2010 and 2020 is considered ground-
breaking for the Indian start-up ecosystem. Before this, a
start-up meant a path filled with uncertainty and risk. To-
day, start-ups are synonymous with innovation, creativity
and problem-solving. The tech start-ups are an important
112 Business Today 5 September 2021
enabler for India to become a $5-trillion economy, aided
by technology-fuelled productivity. For founders, every
customer onboarded, every new user signed up during the
pandemic has taught us that the product and value propo-
sition always comes first, everything else later.
The key hurdle faced by start-ups earlier was to move a
large customer base online. However, this barrier has con-
siderably reduced in the past year as people stayed home
and ramped up their usage of online platforms. The re-
cord level of investments in the ecosystem is a testament
to this paradigm shift and a signal of the impact that new-
age companies can create at the grassroots level.
Another prevalent issue was the concern around
the fragmented and price-sensitive nature of the Indian
market and, hence, a question on its potential to sup-
port highly profitable businesses. Again, technology has
played a critical role here. For example, today, OYO works
with over 100,000 hotels and homeowners globally while
utilising its technology and revenue growth capabilities to
ensure successful business for them.
We see an interest and strong intent on underlying
business economics, both from the founders and inves-
tors. There’s also a strong, early focus on monetisation
now. As the start-up investment ecosystem in India
evolves post-pandemic, angel investors, global players
and entrepreneurs-turned-investors want to be part of
the next big market.
KEY TRENDS FOR THE COMING 10 YEARS
A ‘digital-first’ or ‘product-first’ approach: India’s
first internet start-ups took off between 1995 and 2000
with the launch of Rediff.com (1996), MakeMyTrip
(2000) and a few others. But it was only with the rise of
e-commerce players such as Flipkart, Amazon and oth-
ers from 2010 onwards that the consumer tech start-up
ecosystem found its legs. Edtech, SaaS (software as a ser-
vice), healthcare, hospitality, fintech and e-commerce
are sectors where we expect significant behavioural shift
to fully digital solutions. Today, the hospitality industry
does not only consist of traditional players but full-stack
technology and revenue management platforms that are
more focused on customer satisfaction. Small hotels and
homeowners have been the backbone of this sector, and
it will be critical to equip them with the right technology
and supply-chain financing to help them thrive. Consum-
ers are also booking a hotel through digital channels more
than physical mediums. The industry needs to be pre-
pared for this transition through its product and digital-
first approach. Many businesses, including hospitality,
are now turning to data science and predictive analytics
for competitive advantage. With innovative, scalable data
COVID-19 HAS
PROMPTED START-UPS
TO LEVERAGE DEEP TECH
SUCH AS AI/ML, IOT, BIG
DATA, BLOCKCHAIN,
AND MORE TO PIVOT
TO ADJACENT SECTORS
TO CAPTURE NEW
OPPORTUNITIES. THE
TECH START-UPS ARE
RIDING SOLID DIGITAL
ADOPTION
engineering solutions, OYO has delivered as many as 10
million daily price changes for its global portfolio to stay
on top of the constantly changing demand patterns. Digi-
tal transformation and technology are at the heart of the
start-up ecosystem for many such reasons and examples.
Supportive policy decisions: Over the past few years, the
Indian government has accelerated efforts towards mak-
ing the vision of the Start-up India initiative a reality. The
government has launched more than 50 start-up schemes,
and made policy amendments so that starting up became
a viable career choice. Also, the enforcement of demoneti-
sation, introduction of Goods and Services Tax, attempts
to make India through ‘Atmanirbhar Bharat’ as well as
amended FDI policies have opened up several growth op-
portunities for Indian start-ups. Other initiatives such as
the new allowance for start-ups and innovators to form
one-person companies without restrictions, paid-up capi-
tal or turnover norms also will prove a significant boon.
Mergers and acquisitions to IPOs: I remember a time
when major companies took at least 20 years to file for an
IPO. This has now narrowed to just three-five years. The
Indian IPO market has done extremely well in the past 12
months. Many start-ups have grown to a size where an IPO
makes sense and is attracting a large pool of investments.
The rising number of M&As has also made local and global
investors eye larger ticket-size funding instead of bet-
ter exit opportunities. More M&A deals are expected to
foster a collaborative rather than a competitive strategy.
This will help weed out less sustainable business models
and bring more innovative, personalised products and
services to the market. In my opinion, IPOs, however, are
not always a means to raise money for all companies. For
some, it is the achievement of a milestone in a company’s
journey.
Collaborative emerging environment and multi-
stakeholder approach: The Indian start-up ecosystem
5 September 2021 Business Today
has the potential to be the country’s engine of growth in
the long run. According to Redseer Consulting, by 2030,
the $90-billion consumer internet market in India will
reach $800 billion in gross merchandise value. However,
the public sector has an important role in setting proper
guardrails to ensure emerging technologies maximise
their positive impact while protecting against any po-
tential risks. The notion of start-ups being a threat to in-
cumbents needs to change, shifting towards a culture of
collaboration and synergy. A multi-stakeholder concept is
vital, shifting away from the concept of a zero-sum game.
The stakeholders engaging in the work with corporates,
start-ups, universities, VCs gain insight into new and fu-
ture product and service development, uncovering the
potential to be further explored jointly with start-ups. The
strong ecosystem-level changes are opening up opportu-
nities for new business models and augur well for the uni-
corns of tomorrow.
Attracting the best talent: Talent is critical, but a
strong, positive culture is also important to enable rapid
and healthy scale-up of a start-up. One needs a great mix
of unique skills, attitude and resilience in the top lead-
ers who are capable of retaining the best talent. With the
hybrid work model and work-from-home, there has been
a shift in the quality of the workforce from large cities to
even small towns. Workforce demographics, as well as
consumer profiles, have changed substantially. At OYO,
our top leadership team, including myself, are spending
60 per cent of our time with OYO’s product, data science
and engineering teams in order to understand their needs
and provide the best solutions.
Covid-19 has prompted start-ups to leverage deep
tech such as AI/ML, IoT, big data, blockchain, and more
to pivot to adjacent sectors to capture new opportunities.
The tech start-ups are riding solid digital adoption, and
there’s a massive opportunity. Exits have increased as the
pace of M&As has also accelerated, the IPO pipeline con-
tinues to strengthen, and there will be more competition
in the investor landscape. Zomato and Paytm have fuelled
the IPO race in India already. Global investors would like
to participate in India’s growth start-up story, especially
since other larger international markets are reaching sat-
uration levels to some extent. This makes the road ahead
comparatively easier for the emerging start-ups and the
overall ecosystem.
The pandemic was a ‘Black Swan’ moment. However,
for the Indian start-up and VC world, this has been a year
of structural correction. Looking beyond the short term
downside, this will likely be remembered as the most ef-
fective reboot for India’s start-up economy in this decade
and beyond.
113
 THE NEXT INDIA OPPORTUNITY

BUILDING
A 'JUST IN ROHIT BHAYANA
CO-FOUNDER
AND MANAGING

CASE'
PARTNER,
LUMIS PARTNERS

SUPPLY
CHAIN

INDIA HAS AN INCREDIBLE OPPORTUNITY

TO DEFINE THE DIGITAL SUPPLY-CHAIN
STANDARDS FOR A NEW WORLD ORDER
114
ILLUSTRATIONS BY RAJ VERMA

115
 THE NEXT INDIA OPPORTUNITY
Our Covid-19 vaccine shot is no less a
supply-chain miracle than it is a medical
one — moving billions of vials around the
world, in the right ambient conditions, with
complete track-and-trace, and the ability to
match the ‘arm to the vial-code’.
The other facets are even more pervasive. From home
delivery of food and medicines to how industries operate,
supply chains are everywhere. Omni-channel and direct-
to-consumer (D2C) are not just channel diversification
strategies, but make-or-break choices to work around con-
straints imposed by lockdowns upon lockdowns and miti-
gate ever-increasing geopolitical and environmental risks.
The next generation of supply-chain is thus a two-part
formulation. The first is to create a resilient supply chain
as part of a national agenda, and it needs to be tackled as
such on various levels from infrastructure to policy to de-
risking. The second part is creating an agile supply-chain
innovation stack that enables velocity, and this comes
from digital-, financial-, and information-based supply-
chains.
The first part, thus, is the foundation, which is a gov-
ernment agenda. And though, as a nation, we are terribly
delayed on this front, the good news is that there are global
benchmarks we can adopt without many variations. The
second part not only has fewer parallels but is something
the whole world is also learning anew. This is where India
has an incredible opportunity. We can define digital supply-
chain standards not only for ourselves but for a world order
where ‘just-in-case’ is more critical than ‘just-in-time.’ If we
get this right, we will create an economy that has a resilient
and dynamic supply chain. This is the next generation of
116 Business Today 5 September 2021
supply chains and will be fueled by three objectives: visibil-
ity, variabilisation and trust.
Visibility is the ability to plan better because every as-
set, every stock-keeping unit (SKU), every kilogram is
discernible. Variabilisation is to ensure most players in the
supply chain don’t worry about how to dynamically allocate
their resources since they won’t have financially and physi-
cally fixed assets but will leverage variable ones from spe-
cialist operators. Trust is the ability to go deep and broad
in supplier bases without worrying about performance,
price or quality. Without these three vectors, it is not pos-
sible to build a resilient and dynamic supply chain. And the
most crucial part of enabling these vectors is embracing in-
novation in digital and financial supply-chains. Let’s delve
deeper into these three factors.
VISIBILITY
We get annoyed, as buyers, if we end up purchasing rotten
fruit or spoiled meat. What we don’t realize is that this in-
fected food product is part of a bigger batch that has now
found its way into many homes. At its core, this everyday
struggle — of having to check groceries before buying them
— is a supply-chain problem. The average buyer cannot be
expected to notice spoilage that is undetectable to the na-
ked eye. In fact, even corporations find this challenging.
And while an individual needs to only scan the items they
are purchasing, the channel or distributor has to examine
each item riding the conveyor belt, making their task much
more onerous.
This is where digitalisation and innovation enter the
mix. Imagine, for example, an IoT (Internet of things)-
enabled device that has a sense of smell. Such a device can
detect whether or not a perfectly normal-looking food item
is spoiled from the inside. This is what innovation does —
turn the entire supply chain into a ‘glass pipe’ that gives all
relevant stakeholders end-to-end visibility on their order,
from its whereabouts to its physical state.
VARIABILISATION
One of the most vital components of the job of a supply-
chain professional is to diversify sources, channels and
modes of transport to optimally make in-price and on-time
deliveries. A huge deterrent to this goal is the challenge of
switching. With service levels rising by the day, adequately
planning their supply chain is a bare necessity for corpora-
tions to stay competitive. Broadly, goods are either built-to-
order or built-to-inventory. Building to inventory involves
producing just enough to fulfil the demand for the foresee-
able future, say a week or a month. This can be inefficient
owing to inventory-carrying costs such as paying for stor-
age and the risk of spoilage, among others. Additionally, the
consumer’s options are limited to purchasing goods off the
rack, which leaves little scope for customisation.
On the other hand, build-to-order is a production ap-
proach in which goods are manufactured only after receiv-
ing a confirmed order. Thus, the end consumer determines
the time and number of goods produced. Perhaps the most
significant benefit of this method is its suitability in today’s
demand-elastic environment. This insulates companies
from bearing such costs while improving service levels.
The ability to fulfil demand at the whim of ever-chang-
ing consumer needs requires a level of planning intricacy
that involves a high degree of demand forecasting. Addi-
tionally, the supply chain should be well oiled, which means
there are no delays, as they directly lead to postponing the
fulfilment of orders. Hence, such supply-chain models,
despite all their benefits, require a high degree of sophisti-
cated planning.
The variabilisation of physical assets reduces the iner-
tia to switch between approaches. This has been done by
corporations that divest such assets and instead outsource
supply chains, which allows them to swiftly start up and
shut down production and distribution as required. It also
enables them to diversify and flip channels — from on-
line to offline and vice-versa — and to switch distribution
and procurement from global to local as the need arises. A
greater reliance on 3PLs (third-party logistics) gives today’s
corporations such flexibility.
INDIA HAS THE
OPPORTUNITY TO BE THE
FIRST TRUE PHYSICAL
INTERNET COUNTRY
BECAUSE WE HAVE SO
LITTLE TO HOLD US BACK
5 September 2021 Business Today
TRUST
Supply chains, by their very nature, leverage deep collabo-
rations with third parties. And, after years, this trust devel-
ops to a point where the channel becomes a partner. How-
ever, given today’s constraint-rich environment, the need to
switch partners, suppliers and channels is a reality and even
crucial to ensuring visibility. For example, outsourcing dis-
tribution in Tier-II and Tier-III cities allows a company to
serve these geographies when demand spikes. On the other
hand, investing in fixed assets would reduce the speed at
which it could hit those markets.
Today’s innovations enhance the ability to underwrite
these physical dependencies with extensive data, offering
sharper and better ways to monitor their usage, perfor-
mance and several other factors. Over time, as we monitor
the interlinks between these assets, we can rank and rate
them, solve for leaks or gaps, better identify delays across
the entire network, and, if needed, switch.
We are already applying artificial intelligence (AI)
and machine learning (ML) in everyday networks. For ex-
ample, to optimize a delivery personnel’s route to deliver
maximum orders during a shift, thus fulfilling consumers’
rising expectations for faster, or same-day, deliveries. Aug-
mented reality (AR) and virtual reality (VR) technologies
are revolutionizing the buying experience and trust by
creating an immersive experience. Such technologies are
also being used inside warehouses to get visibility of the
entire infrastructure, leading to swift decision making.
In summary, I believe we are better placed today than
ever before to not only manufacture and distribute in In-
dia but also to embrace existing technologi-
cal innovations to create utilitarian stacks,
using which we can leapfrog what more de-
veloped economies have taken much longer
to build.
The Physical Internet was conceived by
Benoit Montreuil, Coca-Cola Chair in ma-
terial handling and distribution and pro-
fessor at Georgia Institute of Technology.
Montreuil applied the principles of the in-
ternet to logistics, thereby enabling a global,
open, interconnected network using a set of
collaborative protocols and standardized
smart interfaces. He envisioned that physi-
cal goods could be sent and received in stan-
dard modules — instead of packets of infor-
mation — just like data flow on the internet.
I think India has the opportunity to be the
first true Physical Internet country. And not
because we are the furthest ahead, but be-
cause we have so little to hold us back.
117
READY,
CLICK,
LEARN
ONLINE LEARNING IS EMERGING AS THE
‘NEXT BIG THING,’ WITH MANY CALLING
IT THE NEW E-COMMERCE SECTOR.
THE CHALLENGE IS TO ENSURE THE
MOMENTUM CONTINUES POST COVID

e are continually faced with a series of

great opportunities brilliantly disguised as
insoluble problems.”
This quote by John W. Gardner — one of
the giants of public service, philanthropy
and education — came to mind when the RONNIE
Covid-19 pandemic forced educational in- SCREWVALA
CHAIRPERSON &
stitutions across the world to shut down al- CO-FOUNDER,
most overnight. UPGRAD

118
ILLUSTRATIONS BY NILANJAN DAS

119
That, in turn, dramatically impacted how
education was imparted and forced a shift to
e-learning on digital platforms. Educational
institutions rapidly switched to the digital
medium, adapting to online forms of teaching
and learning so that students wouldn’t miss
out on education. This surging market de-
mand created a never-before-seen opportu-
nity for edtech to disrupt the education sector
using technology.
Reams have been written over the last
year-and-a-half about how the pandemic led
to an acceleration in the adoption of educa-
tion technologies, giving a major boost to
the edtech sector. It’s undoubtedly true that
edtech firms have a big opportunity, but the
challenge will be to maintain this momentum
going forward. Technology has made educa-
tion effective and accessible, leading to a mas-
sive surge in users and increasing demand
for digital curricula. But edtech will need to
evolve from the quick-fix solutions created to
weather the pandemic to a longer-term vision
with innovations to scale further.
POWERED BY NEW-
SUNRISE SECTOR
The edtech sector remains attractive as new
AGE TECH SUCH AS
waves of Covid-19 infections further delay MACHINE LEARNING
the opening up of the country, not to men- AND AI, INDIAN
tion schools and colleges. Edtech was growing
strongly even before the pandemic, with global venture
EDTECH PLAYERS CAN
capital investments in the sector reaching $7 billion in EMPOWER LEARNERS
2019, a 1,300 per cent increase over $500 million in 2010, ACROSS THE GLOBE
according to a report by Deloitte. However, the pandemic
opened the floodgates. In 2020 alone, the sector at-
tracted venture capital investment worth more than $10
billion. Yuanfudao, a Beijing-based K-12 online platform,
alone raised $1 billion in a Series G round in March 2020,
the biggest amount ever raised in a single round by any the next year, while the post-K-12 market is expected to
edtech globally. The grass was just as green in India as do- grow nearly four-fold to touch $1.8 billion. All the signs —
mestic edtech start-ups collectively raised $2.22 billion a huge market of more than 300 million consumers, gal-
last year, a four-fold jump from $553 million in 2019. loping revenues and improving bottom lines — are flash-
Edtech in India will continue to attract large sums ing green. No wonder then that investors are lining up to
of capital even when schools and colleges reopen in the book their seat on the edtech bullet train before it sets off
months to come. Online learning is emerging as the ‘next and catches speed.
big thing,’ with many calling it the new e-commerce sec-
tor. There is also government support via policy reforms INNOVATE TO ELEVATE
and the National Education Policy (NEP) 2020 advances What’s next? With vaccination programmes progressing
this through a transformation of the Indian education in India and around the world, the focus is on the light at
system. The online learning market for Class 1-12 is pro- the end of the Covid-19 tunnel. As schools and colleges
jected to increase more than six-fold to $1.7 billion over reopen physical classrooms, edtech players will see the

120 Business Today 5 September 2021

 THE NEXT INDIA OPPORTUNITY
money flow ebb. Their challenge will be to remain rel-
evant and continue to grow in the post-pandemic world.
Edtech firms will have to innovate to address the is-
sues faced by both teachers and learners. They should
focus on making the e-learning process engaging, ensur-
ing personal attention and two-way interaction, bringing
in practical aspects to make learning effective, as well as
ensuring a feeling of community.
We will continue to see the boundaries blurring, not
just between face-to-face and remote learning, but also
between formal and informal learning as well as teachers
and learners. The accessibility, affordability and flexibil-
ity of e-learning mean the learning process can now be
a lifelong one. Even those in rural and remote areas can
now access online platforms. In fact, some edtech play-
ers are rebuilding their platform infrastructure on a light
cloud-computing model so that consumers from rural
areas do not have to compromise on the quality of their
online education. The affordability also increases as one
saves on transport, accommodation and other costs re-
lated to a traditional institution-based learning model.
Online learning also offers one the flexibility to complete
a course at one’ s own pace and convenience.
Going forward, there will be a shift from recorded
lectures to live sessions. We will see blended learning in
flipped classrooms that combine face-to-face teaching
with technology. Learning anytime, anywhere is the new
mantra in a dynamic world where learning and gaining
new skills is a lifelong process. Artificial intelligence (AI)
and other technology-enhanced learning modes will en-
able personal learning experiences that are indispensable
to the lifelong learning necessary to succeed in a knowl-
edge economy. It is here that edtech for adults can be a
catalyst for India’s workforce through vocational skilling
and higher education.
This shift — from a traditional learning pathway to a
lifelong one — is an opportunity for edtech players to move
beyond their core. It offers them a wider addressable mar-
ket as they expand their presence to the post-K-12 market,
with test preparation, higher education, as well as technical
and vocational skills. Players catering to the post-K-12 seg-
ment will also create an impact by serving the K-12 market.
GLOBAL WINGSPAN
With online learning no longer an option but a necessity,
Indian edtech firms have the opportunity to go deep in
the domestic market as well as expand transnationally.
The idiosyncrasies of the domestic market offer tremen-
dous growth opportunities. Over 35 per cent of India’s
1.3 billion population is under 15 years of age, with a poor
student-teacher ratio not just in the K-12 but also in the
5 September 2021 Business Today
post-K-12 segment. Another factor is that, just like the
pandemic, natural disasters also disrupt the traditional
learning process. In these situations, online learning can
help ensure continuity in the teaching process. With the
expanding digital infrastructure backed by affordable
smartphones and data, edtech firms can promote deeper
penetration of technologically backed alternative modes
of education and skilling in India.
We will also see more Indian edtech firms targeting
global plays as they are no longer restricted to national
borders. They are spreading their wings to teach the
world, and not just in the global K-12 segment but also in
higher education. The opportunity is especially strong
in the case of STEM (science, technology, engineering,
and math) education, with the convergence of edtech and
STEM pedagogy. Technologies such as AI, augmented re-
ality (AR) and virtual reality (VR) can help deliver hands-
on and collaborative training to students living in even
the remotest areas.
Moreover, it is not only the lure of higher revenue that
is attracting edtech players to global markets but also the
fact that the domestic market is getting increasingly more
competitive. There are more than 4,500 Indian edtech
startups today but the fact remains that only a few mar-
ket leaders received a bulk of the funding in 2020. This is
leading to an untenable rise in marketing and advertising
costs for smaller players, forcing them to look outwards
for new markets that are not restricted to K-12 as well as
to new segments such as gamified and extra-curricular
learning. This is also leading to a spurt in mergers and ac-
quisitions to enable collaborative synergies and access to
resources while expanding the range of career outcomes
available to a wider base of learners.
WORLD'S TEACHING CAPITAL
Finally, the big opportunity is for India to establish itself
not only as the source of learning and knowledge but also
as the global teaching centre of choice. Powered by new-
age technologies such as machine learning, AI, deep tech
and gamification, Indian edtech players can empower
learners across the globe, even beyond the K-12 segment.
They can offer a platform where individuals from any cor-
ner of the world can be coached and mentored by experts
via live classes and in many languages.
The ancient universities of Takshshila and Nalanda
drew students from China, Japan, Korea, Persia, as well as
countries across south-east-, central- and western Asia.
Today, Indian edtech firms stand at the cusp of an op-
portunity to once again attract students from across the
world and make India the teaching capital of the world.
The time to grab this opportunity is now!
121
 ILLUSTRATIONS BY ANIRBAN GHOSH

122
 THE NEXT INDIA OPPORTUNITY

ENERGY
WILL SEE
BIGGEST
S.N.
SUBRAHMANYAN
CEO & MD,
LARSEN & TOUBRO

DISRUPTION
INFRASTRUCTURE IS OVERDUE FOR
CHANGE. AND, THE DIGITAL REVOLUTION
WILL FURTHER REDEFINE THE SECTOR

s Mirabai Chanu put an end to India’s

21-year-old wait for the second Olympic medal
in weightlifting, one can resonate with what
writer and philosopher Sun Tzu famously said,
“Victory comes from finding opportunities in
problems.”
Resilience is an imperative, as nobody knows
what our world will look like when coronavirus
is over. But one thing is certain — as an industry
whose projects are built to last for generations,

123
we believe that our big opportunity may
be right where we are now. The projects we
build today have to be ready for the require-
ments of tomorrow.
The rate at which the infrastructure ecosystem is
evolving, we feel certain in creating an opportunity for ev-
eryone. The time to start rebuilding society is now. Fresh
thinking is the need of the hour, as dual demands of climate
change and urbanisation are putting urban infrastructure
under pressure like never before. As we navigate the fourth
industrial revolution with a human-centered approach to
design, our imagination is the limit to fostering a culture of
enjoyment and personal responsibility for building socially
stable and vibrant communities. We envision smart high-
ways embedded with neural networks connecting smart
cities, intelligent buildings with real-time digitally-mon-
itored utilities, data-driven traffic management systems, UNDER THE CENTRE’S
autonomous vehicles, sustainable energy sources and zero
emissions. We are super-excited at the potential of these
HOUSING FOR ALL
new opportunities. PROGRAMME, INDIA
The world is surely and steadily moving towards adopt- HAS SET A ROBUST
ing hydrogen as green fuels take centre stage. This is a huge
opportunity for Indian infrastructure. Electrolyser tech-
TARGET OF BUILDING
nology, used for splitting water using renewable power SIX CRORE HOUSES BY
for production of green hydrogen, is poised for large-scale 2022. 3D PRINTING WILL
commercial adoption.
A Bloomberg report recently predicted that hydrogen BOLSTER THE PROGRESS
could meet up to 24 per cent of the world’s energy needs by OF THE MASS HOUSING
2050, creating a market worth $600 billion. India has taken
some concrete steps towards producing green hydrogen.
SEGMENT UNDER THE
With five pilot plants being set up to ascertain its commer- PRIME MINISTER AWAS
cial viability, India holds the potential to become a large YOJANA
producer of green hydrogen, considering these plants can
produce 175 GW of renewable power by 2022, which will
grow to 450 GW by 2030.
Hydrogen can ultimately replace fossil fuels. However, water desalination will be some of the major catalysts. All
sectors such as transport, buildings and power need to sig- these are unique business opportunities.
nificantly increase its adoption. According to scientists,
hydrogen will revolutionise the global transport system. It THE DETAILS
will power vehicles for much larger distances than the pres- Making air-conditioned mass-transit faster and safer, es-
ent electric vehicles. Imagination is the limit to the oppor- pecially for a bustling metropolis such as Mumbai, where
tunity that green hydrogen can provide. suburban local trains are the lifeline, will provide conve-
The Centre’s National Hydrogen Mission is expected nient mass-transit options, raising the happiness index of
to incentivise various approaches and the nation’s medi- its inhabitants.
um- to long-term strategy of becoming a sizeable player in The workplace of the future is also set for possibly the
green energy. L&T is seriously exploring opportunities for biggest change, opening a plethora of opportunities. We
acquiring integrated capabilities in this area. envisage ‘safety’ at workplace through simulated (VR) sys-
In fact, the biggest disruption in the future of infra- tems that can mimic potential dangers, hazards and feel
structure will be in the energy sector. Hydrogen economy, of the ecosystem. ‘Connected workmen’ wearing ‘smart
carbon capture, biofuels, electric vehicles, green buildings, wearables’ that can detect altitude, temperature and other

124 Business Today 5 September 2021

 THE NEXT INDIA OPPORTUNITY
environmental conditions, besides
monitoring vitals such as heart-
beat, pulse rates, blood pressure
and fatigue will come to the fore-
front. Use of artificial intelligence
(AI) models, sensors and beacons
will generate timely alerts to pre-
vent accidents.
Imagine Internet of Things
(IoT) technology connecting
thousands of machines, deployed
across hundreds of project sites,
communicating with each other
in real time. Consider remote
monitoring and insights into vari-
ous performance parameters of
factory equipment. Use of neural-
control technology to move and
control machinery at sites is an-
other big opportunity. We also
foresee drones scanning sites, in-
specting the works and using the
data collected to predict problems
before they arise. These are not
only real opportunities but work-
in-progress.
We are going for 3D-printing of
entire houses as a big opportunity.
The successful 3D-printing of a ground-plus-one-floor
building by L&T in Kanchipuram, Tamil Nadu, sets the
platform for leveraging 3D concrete printing to radically
redefine construction methods and fast-track conversion
of innovative design ideas into final products.
Under the Centre’s Housing For All programme, India
has set a robust target of building six crore houses by 2022.
3D printing will bolster the progress of the mass housing
segment under the Prime Minister Awas Yojana. Generat-
ing and analysing intelligent insights from the large volume
of data in the construction-infrastructure industry will
require new software & algorithms, skilled data analysts
and robust information management. This represents one
more business opportunity.
Smart buildings represent another opportunity to de-
ploy communication and automation technologies and
integrate various building subsystems, including HVAC
(heating, ventilation and air-conditioning), lighting, fire
protection, access control, surveillance, smart meters,
water, UPS, elevators. All these subsystems can share in-
formation to improve the performance of buildings, which
will be in sync with smart grids, thereby enabling energy
optimisation.
5 September 2021 Business Today
In future, IoT will power smart buildings built with new
energy-generating or breathable materials. This will be a
great opportunity for infrastructure players. Smart cities
will instantly adapt to changing circumstances. By then,
we will also have 4D printing, which will have self-trans-
forming objects, responding to heat, sound or moisture lev-
els to change shape. Focusing on design and construction
alone will become an outdated concept as infrastructure
becomes multi-functional.
In the near future, a whole host of other new innova-
tions — both in terms of regulations and skills — await us.
Multi-pronged security solutions on turnkey basis, which
are modern and reliable for a whole spectrum of smart
infrastructure, will be the norm. Smart buildings, smart
energy, smart water solutions, smart transportation and
logistics, smart emergency response systems, smart real-
time information systems and smart cities will become
standard very soon. All of these translate into great oppor-
tunities for infrastructure.
As we see it, infrastructure is overdue for change. And,
the digital revolution will further redefine the sector. For
companies to capitalise on this opportunity, digital trans-
formation must be made to encompass the whole organ-
isation and pushed down the supply chain. Considering
the inevitability and significance of a ‘green future’, all
infrastructure players should increasingly shift their fo-
cus towards the environmental impact of business. L&T
is one of the few companies that started reporting sustain-
able practices long before it was mandated by the regulator.
Our focus is not only on our operations but also engineer-
ing sustainable solutions for our customers. We approach
these solutions holistically, going beyond the environmen-
tal regulations that govern them, to fully consider the com-
munities and environments they impact.
Green and clean technologies must become a part of
our mainstay offerings. That will help companies cater to
areas such as renewable energy generation from solar and
wind, energy storage and transmission, decarbonisation,
and hydrogen generation and utilisation. Huge opportuni-
ties exist in all these businesses for capable enterprises.
Across the world, building infrastructure is a political
and economic priority. Increasingly, complex projects will
be commissioned to stimulate economies, upgrade old sys-
tems and cater to growing and changing populations. For a
country such as ours, high economic growth (once Covid
subsides) and fast-growing populations will typically lead
to significant urbanisation. Therefore, the demand for new
infrastructure is bound to see massive growth in the com-
ing future, which will again translate into a great opportu-
nity for our industry.
We are eagerly waiting to embrace that future.
125
 THE NEXT INDIA OPPORTUNITY

INDIA
CAN SANJAY GUPTA

SHAPE THE
COUNTRY
HEAD & VP, INDIA
GOOGLE

FUTURE
OF THE
INTERNET

IF YOU LOOK ACROSS THE TECHNOLOGY

SECTOR - FROM TRAVEL, FOOD-TECH,
ED-TECH, AGRI-TECH, HEALTHCARE,
TRANSPORTATION, AND FINTECH - INDIA’S
INTERNET IS DEFINED AND SHAPED BY
PROUDLY INDIAN COMPANIES
126
ILLUSTRATIONS BY NILANJAN DAS

127
 THE NEXT INDIA OPPORTUNITY
‘Digitising India’ is a deceptively pithy
use of words that belies the incredible
complexity of mapping onto technology
the many disparate levers that work in
concert to help a country of this size to
run. That said, if this attempt isn’t the true
zero to one experiment of our lifetimes,
I’m not sure what else is.
In our journey of over 15 years in India,
we, at Google, have had a unique players’
view of the arena. Many of our products
and features that are today used globally
were first piloted in India, because India
provides a unique crucible that puts to the
test a product’s ability to talk simultane-
ously to someone in Bhilai and another
one in Bengaluru while at the same time
testing its sheer resilience in the face of
India’s tremendous scale.
India’s digital transformation journey is a story of a
sustained effort from its ambitious and able entrepre-
neurs, its large, young and effortlessly technology-savvy
workforce, and most importantly, the recognition of the
internet as a key driver of progress and economic growth
by the Indian government. And while we are fortunate
to play a role in this transformation, the vision of a con-
nected India that will help businesses grow, power edu-
cation for the next generation, drive financial inclusion,
improve access to healthcare, improve yield for our farm-
ers and drive sustainable growth for the Indian economy
128 Business Today 5 September 2021
is far from complete.
To drive tech transformation at the scale of India re-
quires deep understanding of the challenges of scale and
complexity that come with India’s linguistic diversity,
literacy gaps, socio-economic barriers and finding a sus-
tainable model with the right unit economics.
Today, with improved connectivity, lower data costs
and more affordable access to personal computing devic-
es through smartphones, India has laid the foundation to
deliver the benefits of the internet to a very large section
of the population. And what we are witnessing today is a
country in transition. We have huge momentum in adop-
tion of the internet and its different offerings. We have a
flourishing start-up ecosystem that is building new-age
businesses to cater to this growing online population and
legacy industries starting on their digital transformation
journeys.
But while we’ve undoubtedly charted a large distance,
there’s still a lot of ground that remains to be covered. In-
dia’s digital divide continues to be a reality, and until such
time that we’ve leveled this disparity, the mission isn’t
complete.
As anyone in India will tell you, the country changes
every 50 kilometers, and as you go deeper, you begin to see
large gaps in access to basic services, pronounced linguis-
tic diversity, device affordability issues and digital gender
gaps. Many of these gaps have spawned unique user be-
haviours endemic to India — for example, for a large sec-
tion of the population for whom literacy continues to be a
barrier, online video is their port of entry to the internet.
The incredible depth of content that exists in every single
spoken language in India, thanks to our flourishing film
and TV industries, ensures that users can consume con-
tent in their own languages. And when the ease of voice
input is added to this, India’s curious and inventive users
vault over the frictions of linguistic diversity. Together,
the 3Vs of Video, Voice and Vernacular have helped over-
come the barriers for many new users.
We are already seeing how the rise of video content
on the web in India is powering new experiences in edu-
cation, with many, across ages and genders, learning
new skills, not to mention the diversity in the kind of
content India is creating and consuming through online
video. For instance, a cooking channel on YouTube from
Chinna Veeramangalam of Tamil Nadu’s Pudukkottai
district of Tamil Nadu recently became the first Tamil
channel to cross one crore subscribers. The channel is
run by 75-year-old Periyathambi, who was a caterer, and
his grandchildren. This is just one among thousands of
such stories, and we strongly believe that online video
will continue to shape new opportunities and define new
models on the web — ed-tech and video commerce being
the most prominent use cases.
FEET ON STREET
In the last several years, we have seen massive effort with
‘feet on street’ models to digitise India’s vast small and
medium businesses. In the process, maps have played a
critical role in leveling the information asymmetry that
otherwise plagues brick and mortar businesses keen to
expand and grow. Most of us would be hard-pressed to
remember the official names of the streets we frequent,
and as you go deeper into the country, many bylanes are
yet to be christened at all, posing massive challenges for
e-commerce and logistics solutions.
From having no digital maps to using maps to get
around anywhere in the country, with directions, with
landmarks, in your own language, has created unimagi-
nable opportunities for businesses and made life easier
for people across the country. And today, while there
are now a significant number of small businesses which
have an online presence, leveraging digital platforms for
growth requires new mindsets and skills. It will require
efforts from the entire digital industry to handhold busi-
WE ARE ALREADY
SEEING HOW THE RISE
OF VIDEO CONTENT
ON THE WEB IN INDIA
IS POWERING NEW
EXPERIENCES IN
EDUCATION
5 September 2021 Business Today
nesses to gain from the internet.
Today we see most large businesses investing in
building technology capabilities, and a majority of them
are full-stack businesses that deeply leverage technology
and have large offline components and business models
that deliver end-to-end solutions. We are now beyond the
era where building an app was the ultimate bastion to sig-
nal a company’s tech prowess — today, a company’s depth
of technology capability is a true competitive differentia-
tor. This is playing out most prominently in retail, auto
and more recently in insurance and banking.
As we have progressed upon this journey, we have
seen seminal events that are now cited in Ivy league busi-
ness school case studies as game changers. Reliance Jio’s
entry and the rollout of the Unified Payments Interface
by NPCI are just a couple of such examples. India is writ-
ing the playbook for the world on digitising payments.
If you look across the technology sector— from trav-
el, food-tech, ed-tech, agri-tech, healthcare, transporta-
tion, and fintech — India’s internet is defined and shaped
by proudly Indian companies. They have demonstrated
tremendous resilience and capability to build and scale
up very successful companies that shape India’s internet.
Scaling up these businesses further will require huge ac-
cess to capital and innovation that the world has not seen
before. India has enormous potential to shape the global
future of the Internet.
While the challenges ahead are theoretically clear,
India has many disparate variables that need to be con-
stantly tracked and studied to build solutions that work
for everyone. Today, with close to 600 million Indians
online, we have indisputably come a long way. But we’re
now entering a phase where we need to recommit to un-
derstanding the challenges of the rest of India, or Bharat
if you will, to make their internet as helpful as it is for you
and me. Further work remains to be done to address af-
fordability, new use cases and studying the broader tech-
nological shifts accelerated by the Covid-19 pandemic.
We also need to invest and ensure that users, both
old and new, continue to put their trust in adopting new
services and the digital way of life. As an industry, we
need to earn that trust by prioritising user privacy, safe-
ty and security. The pandemic has led to digital tools be-
coming a lifeline and we see consumers and businesses
rapidly doing more online. Schools, small and medium
businesses, large companies and governments are all
under intense pressure and urgency to digitise. While
this transition will be challenging — daunting, even — it
is also an incredible opportunity to innovate and usher
in models that can make Bengaluru and Bhilai feel closer
than ever before.
129
 THE NEXT INDIA OPPORTUNITY

TOWARDS
GREENER SUMANT SINHA
FOUNDER

PASTURES
CHAIRMAN & MD,
RENEW POWER

INDIA’S 450 GW RENEWABLE ENERGY

TARGET IS AMBITIOUS, BUT THE PACE OF
REFORMS AND INCENTIVES IS SPURRING
THE COUNTRY TO A GREENER FUTURE

I
ndia is set to witness a boom in the elec-
tricity sector. As things stand, India ranks
third globally in both electricity production
and consumption. However, our per-capita
consumption is a shade over 1,200 kWh (kilo-
watt-hours), which is a third of the global av-
erage, a quarter of China’s and a tenth of that
of the US. Moreover, India’s population is
projected to increase by 270 million by 2040.
And that will lead to a steep rise in economic
activity as all these people will need homes,
vehicles and several consumer goods. Our

130
ILLUSTRATIONS BY RAJ VERMA

131
 THE NEXT INDIA OPPORTUNITY
electricity consumption is likely to grow
with rising economic activity, as studies
show a strong historical correlation be-
tween the two.
The International Energy Agency estimates that to
feed this demand, India will need to add a power system
that is equal to the size of the European Union’s over the
next 20 years. And this will need to be done while ensur-
ing India meets its Nationally Determined Contribution
(NDC) commitment—the long-term goals at the heart
of the Paris Agreement on climate change—to reduce
the carbon intensity of its GDP by 33-35 per cent com-
pared with 2005 levels.
This is where renewable energy will play an impor-
tant role as it can power economies while producing zero
emissions. Furthermore, renewable energy, or utility-
scale solar and wind specifically, is now the most afford-
able source of electricity due to technological advance-
ments, rising economies of scale and a decline in capital
expenditure. Thus, economic logic also reinforces the
case to meet the growing electricity demand with re-
newable energy.
Taking cognizance of this, the Indian government
has set an ambitious target of reaching 450 gigawatts
(GW) of renewable energy capacity by 2030. This means
boosting India’s current installed capacity of 96 GW by
fivefold over the rest of this decade. For context, adding
the remaining roughly 350 GW of renewable energy ca-
pacity to the grid is equivalent to what the Indian power
sector has managed in its entire history. This leaves little
scope to add any new thermal capacity to meet the next
leg of growth in electricity demand.
The government is also taking myriad supportive
steps to ensure renewable energy grows in line with its
targets. Over the last decade, India’s renewable energy
capacity has already grown sixfold, from 16 GW in 2010
THE INTERNATIONAL
ENERGY AGENCY
ESTIMATES THAT
INDIA WILL NEED TO
ADD A POWER SYSTEM
THAT IS EQUAL TO THE
SIZE OF THE EU’S OVER
THE NEXT 20 YEARS
132 Business Today 5 September 2021
to 96 GW currently. This incredible growth story was
enabled by incentives such as feed-in-tariffs (promising
producers tariffs above market-fixed rates), accelerated
depreciation, GBI (generation-based incentive), RPOs
(renewable purchase obligations), waiving interstate
transmission charges as well as income tax breaks.
Going forward, the government is also striving to
address many of the challenges that renewable energy
producers face. Take, for instance, the “must-run” sta-
tus afforded to producers, which implies that the power
they transmit must not be curtailed for any commercial
reason. This was introduced to solve the problem of arti-
ficially curtailing renewable energy because the current
tariff mechanism—thermal power producers are paid
fixed rates even if distribution companies (discoms)
don’t buy the contracted electricity—does not support
curtailing thermal energy.
Another problem that the government is attempting
to solve is the poor health of the state discoms, which of-
ten results in delayed payments to electricity suppliers.
The lacklustre state of discoms is predominantly due
to the absence of competition in the sector, low collec-
tions from government departments, inefficient tariff-
setting processes, expensive thermal power purchase
agreements (PPAs) and the lack of technology and infra-
structure development.
To improve the viability of discoms, the govern-
ment has announced a reform-based, result-linked pro-
gramme with an outlay of `3.03 lakh crore (about $41
billion) over the next five years. This is expected to as-
sist discoms in building infrastructure such as prepaid
smart meters and feeder separation as well as upgrad-
ing systems tied to financial improvements. Addition-
ally, the government has announced a liquidity infusion
package of `1.35 lakh crore (about $18 billion) to help dis-
coms clear their dues. Furthermore, the government is
working on privatising discoms in eight Union Territo-
ries in a bid to introduce competition in the sector. The
auctions for the discoms in Chandigarh and Daman &
Diu have concluded, indicating this effort is on track.
The government has also been endorsing manufac-
turing solar energy equipment domestically, under its
broader goal of an “Atmanirbhar Bharat” (self-reliant
India). Several policies such as the production-linked
incentive (PLI) scheme, basic customs duty (BCD) and
approved list of module manufacturers (ALMM) have
been introduced to incentivise the sector. These are es-
sential for the growth of a sector that is heavily depen-
dent on imports. Since 2015, India has imported, on aver-
age, `17,600 crore ($2.6 billion) worth of solar cells and
modules each year.

GREEN HYDROGEN
COULD BE AN IDEAL
POWER SOURCE FOR
HARD-TO-ABATE
SECTORS SUCH AS
CEMENT, STEEL AND
TRANSPORTATION
Entering the field of cell and module manufactur-
ing with fully integrated facilities will also give solar
power developers an edge when dealing with currency
fluctuations and supply-chain disruptions. Due to the
geopolitical situation, energy security has become para-
mount. That is why we need to reduce our dependence on
importing critical equipment to build renewable energy
infrastructure, especially as they replace fossil fuels.
Our domestic market is large enough to support manu-
facturing within the country and, as we grow in scale, we
should be able to produce components at globally com-
petitive prices. Domestic manufacturing will also create
a component ecosystem, save the country trillions in for-
eign exchange and add a significant number of new jobs.
Renewable energy players also face the issue of inter-
mittency. The consensus is that battery storage is the
5 September 2021 Business Today
leading solution to this issue. Battery costs have been
falling consistently over the last few years. A lithium-ion
battery pack used to cost $1,200 per kWh in 2010. To-
day it costs around $120 and Bloomberg estimates that
the price will fall by 8 per cent every year to reach $60
by 2030. Batteries, therefore, are becoming an economi-
cally viable solution to integrate renewable energy into
the grid. The Indian government recently introduced
the landmark “round-the-clock auction” to encourage
coupling renewable energy with other sources and with
battery storage to offer round-the-clock supply. Such
innovative auctions will be instrumental to ensure that
renewable energy sources can provide uninterrupted
power to the grid.
The use of green hydrogen is also likely to increase as
we go forward. While renewable energy sources can pro-
vide electricity to power homes and electric cars, green
hydrogen could be an ideal power source for hard-to-
abate sectors such as cement, steel and transportation.
Better yet, using renewable energy to create hydrogen
can also help solve the problem of intermittency. The
government recognises this as well and has proposed to
launch a National Hydrogen Mission to generate hydro-
gen from green power sources.
We also need to invest in the necessary technological
infrastructure to support the move towards round-the-
clock renewable energy supply, better grid and storage
capacity as well as generating green hydrogen and newer
forms of wind and solar energy (such as floating and
offshore farms). This will include investments in R&D,
evacuation infrastructure for moving captured carbon
emissions and systems to carry hydrogen between ports
and industrial zones. This sector is also likely to require
skilled labour, opening job opportunities across mul-
tiple levels. The government’s pledge to scale up renew-
ables to meet its NDC goals as per the Paris Agreement
is expected to boost India’s net employment (measured
in full-time employees) by an additional 30 per cent by
2030, according to a report by the CEEW, a policy re-
search institute and think tank.
The future of renewable energy in India looks very
bright. We are currently at an exciting juncture in the
evolution of the sector. The steps India takes now have
the potential to shape the global narrative on energy
transition and place it among the front-runners on the
global economic map. Our sheer size and expected
growth place us in a unique position to pioneer a new
blueprint for a less carbon-intensive development path
that can be followed by other developing countries.
I am extremely optimistic about our future and eager
to see our story unfold..
133
 ILLUSTRATION BY RAJ VERMA

134
 THE NEXT INDIA OPPORTUNITY

SUNIL MATHUR
MD & CEO,
SIEMENS INDIA

SCRIPTING
A SMART
GROWTH
STORY
DIGITAL TRANSFORMATION IS CHANGING
THE WAY BUSINESSES ARE RUN. IT
IS ALLOWING COMPANIES TO TAKE
MORE RISKS AND PURSUE NEWER
OPPORTUNITIES TO EVOLVE
135
 THE NEXT INDIA OPPORTUNITY
Choices are all around us. In the last 18
months, all of us have had to make choices
beyond the ordinary. Personally, making
choices and implementing them to revo-
lutionise the future is a promising and en-
dearing prospect. Going digital has gone
from a ‘good to have’ to a necessity for
short-term survival and long-term prog-
ress — for the entire ecosystem and value
chain.
Whether you are an entrepreneur, a large or small
enterprise, or a diversified conglomerate, the opportu-
nities and possibilities ushered in by digitalisation are
too exciting and omnipresent to ignore. With time-to-
market a new product or process spiralling down to half,
the cost of development reducing to a mere fraction,
production systems getting 30 per cent faster and 25 per
cent more efficient, and downtimes almost tending to-
wards zero, it may seem like any manufacturer’s dream
come true. Only, it isn’t wishful thinking. It’s the new
norm in Industry 4.0 made possible by the revolutionary
technologies in digitalisation and smart infrastructure.
DIGITAL TRANSFORMATION
Digital transformation is changing the way businesses
are run. It is allowing companies to take more risks and
pursue newer opportunities to evolve. It empowers
136 Business Today 5 September 2021
businesses across industries to get a lot done without
having to go through as many steps. It has smarter and
more sustainable ways of doing things by utilising less
time and fewer resources. More flexible production —
the ability to shift production lines in a short span of
time; greater productivity; higher quality; and the de-
velopment of new business models are all possible today
thanks to digital solutions.
A digital twin is one such approach that has caught
on across user segments. It is a digital simulation of the
physical world that provides information about a prod-
uct’s behaviour in real time. It can be used to significant-
ly reduce costs, improve efficiencies, shorten delivery
times, and enhance performance and user experience.
It helps product designers understand how a real-life
object reacts to different environmental conditions or
loads without ever having to touch it. These technolo-
gies even help engineers test complex systems. For ex-
ample, a simulation can be used to study the behaviour
of an airplane’s wings, to find out if they will bend un-
der certain pressure, or it can be used to simulate how
a building may react after an earthquake. In the manu-
facturing set-up, the technology can support factory
lifecycle processes by designing and demonstrating the
concept, for example in a cement or steel factory with
multiple shop floors.
Such and many other field applications across green-
field and brownfield projects are made possible through
technologies like IoT. Connected devices transmit vital
information about what is happening in the environ-
ment back to the digital twin where data analytics help
track various performance parameters to identify po-
tential threats and failure points.
Yet, that is not the most exciting part. Imagine the
possibilities that open with the integration of vari-
ous technologies, platforms, and principles like digital
twin, IoT, and data analytics with ever-evolving disci-
plines like artificial intelligence (AI). In the future, cars
and bikes could be designed and developed with digital
twins and manufactured using AI and 3D printing. I will
not be exaggerating if I say that one’s imagination only
limits the tech.
SMART INFRASTRUCTURE
Some of the areas that I feel will adopt digitalisation in
a major way are smart mobility (e.g. automated guided
vehicles or AGVs), smart grids (digital technologies
and IoT solutions to intelligently respond and adapt to
changes in the grid), smart buildings (which can con-
tribute to energy savings and emissions reduction), and
of course smart cities.
 The commercial implementation of smart infra-
structure and mobility solutions will be pivotal for eco-
nomic growth. These will have to be carefully planned
and require a premium degree of digital adoption to
meet two core promises: a higher standard of living for
all citizens and the preservation of natural resources.
Imagine outcomes like intelligent road infrastructure
and traffic solutions, effective management of urban
waste, improved connectivity, enhanced sustainability,
real-time pollution monitoring, improved safety, etc.,
without compromising on citizens’ convenience and
well-being!
THE IMPACT ON VERTICALS
The impact of digitalisation on industry verticals has
been immense. The pharmaceuticals industry, for ex-
ample, has been one of the biggest beneficiaries due to
the implementation of AI and machine learning tech-
nologies. There has been increased productiveness due
to the elimination of repetitive tasks or processes. The
most important benefit, however, is that there has also
been a big spike in quality control due to the accuracy
with which it can be measured. These benefits have led
to an increase in profitability for the pharmaceuticals
industry.
The automotive industry can be tough to keep up
with, but digitalisation has done a lot to make processes
easier. With digitalisation, there is a potential for huge
gains in productivity, saved costs, and improvement
of supplier management. This is because digitalisation
helps when it comes to communication, traceability, in-
ventory monitoring and efficiency. Automotive compa-
nies have embraced this technology with open arms and
are seeing phenomenal results.
SOME OF THE AREAS
THAT I FEEL WILL
ADOPT DIGITALISATION
IN A MAJOR WAY
ARE SMART MOBILITY,
SMART GRIDS,
SMART BUILDINGS
AND, OF COURSE,
SMART CITIES
5 September 2021 Business Today
In India, while some large businesses have been
quick to transition into this digital world, a majority of
the small and medium enterprises (SMEs) in the manu-
facturing sector are yet to put such technologies to work.
There will be sustainable development of manufactur-
ing only when the SME sector participates with upgrad-
ed technology and skills. Through digitalisation, SMEs
can enhance efficiency to fight scale, reduce cost of pro-
duction, minimise manufacturing defects and shorten
production time.
SCALING SKILL DEVELOPMENT
Exciting as these applications are, as creators and tech-
nology providers, it is our job and responsibility to en-
sure that all stakeholders genuinely benefit from the im-
mense transformative power of these technologies. So,
what is it that you and I can do? Of the many initiatives
we can undertake in our professional capacities as poli-
cymakers and influencers, the biggest and most signifi-
cant one will be investing in skill-building. If we are to
truly leverage existing technologies and keep pace with
the breakneck speed at which newer ones are emerging,
we will need the relevant skills, at scale.
The right amount of skilled human resources in digi-
tal transformation is the key to ensuring substantial and
measurable success. The demand for people skilled in
digital technologies has increased tremendously over
the last decade, as has the demand for those with con-
sulting skills. Let us do what we can to work together, not
only with business leaders, but also with government of-
ficials, decision-makers, institutions and influencers, to
make plans about where to direct funds, which indus-
tries to invest in, and how best to train our workforce for
emerging technologies.
INDIA’S DIGITALISATION JOURNEY
Changing demands, new digital technologies and in-
novative business models are rapidly emerging and dis-
rupting traditional roles and solutions. For a country
like India, we must design and implement processes that
enable the efficient use of resources, and there is little
doubt in my mind that digital is the way ahead. The last
18 months have demonstrated and reiterated the pow-
er of digitalisation. Investing in long-term digital-led
transformation is the best way forward. While we have
experienced successes in the digitalisation journey,
there is a long way to go.
India has the unique opportunity to leverage ad-
vanced digitalisation and smart infrastructure tech-
nologies to create an extraordinary competitive
advantage.
137
 THE NEXT INDIA OPPORTUNITY

RURBAN
APPROACH
WILL YIELD
SURESH
NARAYANAN
CHAIRMAN AND
MANAGING
DIRECTOR,
NESTLÉ INDIA

RICHES

PORTFOLIO, REACH, RELEVANCE,

PRICE POINT AND CONVENIENCE MUST
RESONATE WELL WITH CONSUMERS IN
BHARAT, BUT THIS DOESN’T MEAN URBAN
CONSUMERS SHOULD BE OFF THE RADAR
138
ILLUSTRATIONS BY RAJ VERMA

139
 THE NEXT INDIA OPPORTUNITY
The consumption story of India will
only become stronger moving forward. As-
pirations are rapidly converging between
urban and rural India due to the advent of
the internet and smartphones that have sig-
nificantly bridged the information divide
between urban and rural consumers. The
convergence of aspirations in the digital age
has been far sharper than what we had imag-
ined. Additionally, at a given income level,
both urban and rural consumer groups
desire a similar standard of living, aspire
for a similar set of brands and are equally
comfortable with technology-enabled con-
sumption. This indicates that consumption
of branded goods with high quality, safety,
nutrition and credentials will see an uptick,
thereby opening up a window of opportuni-
ties for FMCG companies.
Therefore, the need of the future is to look for ‘many
Indias within India’ with greater focus on distribution
reach, innovating with low-unit packs, and trade and con-
sumer promotion. Rural will be an important dimension
of the next phase of growth for companies. The portfo-
lio, reach, relevance, price point and convenience must
resonate well with consumers in Bharat. This also entails
a sharper understanding of users to know their demo-
graphic, typographic and attitudinal aspects, apart from
media and shopping habits. Time, orientation and rele-
vance of brands in rural markets should also come before
140 Business Today 5 September 2021
a company starts investing in infrastructure.
Underlining the focus on rural doesn’t mean that ur-
ban is off the radar. Companies will have to adopt the
‘Rurban’ approach and tap into rural, urban and urban
agglomerates. They need to get their physical and digital
distribution right, keep consumers engaged with new of-
ferings and drive the premiumisation strategy to adapt to
the changing landscape. Changing food habits will drive
innovations from companies and give consumers a larg-
er numbers of SKUs to choose from. The pandemic has
witnessed re-calibration of consumer wallets amid eco-
nomic disruptions. It has brought about a major shift in
consumption patterns with necessary purchases taking
precedence over luxury spending. Certain terms such as
health, immunity, safety, nutrition and trust have gained
more prominence as consumers prefer “tried and tested”
brands in these uncertain times. There is an increasing
preference for quality, purity and hygiene associated with
branded products. Increasing penetration and procliv-
ity towards more credible, transparent, trustworthy and
scientifically better modulated brands are going to be
the norm. Companies will have to leverage their in-depth
knowledge of food habits, nutrition, quality and safety to
innovate and renovate and adapt to this new normal. They
need to respond to the new demand, reset their defining
relationship with consumers and reconsider their prod-
uct portfolio to make products healthier while also allow-
ing consumers to make pleasurable indulgent choices.
Organisations that will act in the interest of their em-
ployees, stakeholders and society at large will reinforce
their expertise, leadership, trust and strengthen the bond
they have with consumers going forward. Long partner-
ships strengthen trust and create an everlasting bond
among stakeholders. The goals of all partners need to be
aligned — to have a positive impact on people’s lives and
create maximum value for consumers they serve.
Consumers are also going to be more digitally active
than they were earlier and food companies with a strong
digital-first capability are the ones that are going to hold
consumers’ interest for a long time. There has been a clear
jump in home cooking and searches related to food, from
both an innovation as well as a nutrition standpoint, in the
past year. As a response to this, we saw companies pivot-
ing towards offering unique solutions for responding to
the consumer behaviour that they were witnessing, and
this will clearly be the way forward. By embracing tech-
nology through AI-enabled chatbots, and other facili-
ties, companies are creating an experience through their
websites, which can also provide information centered
around nutrition and wellness accessible to consumers.
This is especially important in the current times when
access to experts and credible information is becoming
more challenging.
While e-commerce was growing even before the pan-
demic, we have seen a strong acceleration in the channel
on the back of Covid-19. There has been a baseline shift
of the grocery user to online. This change in shopper
behaviour will continue to aid overall channel growth.
Targeted digital communication across brands to drive
online salience and penetration will be the key. Compa-
nies must focus on introducing differentiated offerings
to shoppers online through special and exclusive prod-
uct propositions as well as a strong innovation pipeline.
However, having said that, companies should acceler-
ate their e-commerce involvement with the traditional
trade also. I still believe kirana stores have lot more busi-
ness prospects.
There has also been a rise in adoption of digital-first
strategies across businesses — from distribution to sup-
ply chain and from manufacturing to supply partners.
COMPANIES SHOULD
ACCELERATE THEIR
E-COMMERCE
INVOLVEMENT WITH THE
TRADITIONAL TRADE
ALSO. I STILL BELIEVE
KIRANA STORES HAVE
LOT MORE BUSINESS
PROSPECTS
Companies are rolling out apps that would enable retail-
ers to place orders digitally and launch digital logistics
platform to optimise the availability, dispatch and re-
sourcing of all logistics movements, both inbound and
outbound. This will help optimise material movements
across the country by using data and analytics. Company
leaders also need to have a good understanding of tech-
nology to identify and leverage new-age digital-led busi-
ness opportunities. They should have an understanding
of business systems and design thinking in order to dis-
rupt the frameworks used for creating future business
outcomes that are both robust and sustainable.
Sustainability will be a key growth driver for busi-
nesses in the future. Climate change is and will continue
to be one of the biggest challenges facing mankind. Ad-
dressing this will require a multi-stakeholder approach
to collaborate and monitor progress, laying the founda-
tion for a better world. Plastic waste is also a big menace.
There are concerns around the quantity of plastic waste
entering the natural environment and damaging our
ecosystems. Therefore, sustainable food systems will be
fundamental to ensuring sustainable development with
three important goals — economic development, social
development and environmental protection. This would
ensure that we don’t take more than we need, so that our
resources remain for our future generations. There will
be an increasing need to act on sustainabil-
ity as expectations on corporate respon-
sibility are increasing and transparency
is becoming more prevalent. Good inten-
tions will no longer be enough. Organisa-
tions will need to join hands and work to-
wards the greater cause.
The three attributes that will shape suc-
cessful organisations in the days to come
are resilience, authenticity and compas-
sion. We also have to recalibrate the way we
engage with our people and further enable
decision-making at appropriate levels. In-
creasing penetration and proclivity towards
more credible, transparent, trustworthy
and scientifically better modulated brands
is going to be the call of the consumer. The
future will demand increased commitment
from companies and their brands, mak-
ing sure that businesses stay committed to
communities, consumers and the planet. If
the pandemic has taught us a lesson, it is to
embrace humanity and make a difference
with our lives for whatever time we have on
the planet.
141
 THE NEXT INDIA OPPORTUNITY

GOING BAC
THIRTY YEARS IS A LIFETIME IN THE WORLD
OF BUSINESS. THESE PHOTOS FROM OUR
ARCHIVES CHRONICLE SOME OF THE BIGGEST
MOMENTS IN THAT JOURNEY
PHOTOGRAPH BY NAMAS BHOJANI

1
PHOTOGRAPH BY PRAMOD PUSHKARNA

142 Business Today 5 September 2021

CK IN TIME
3 1
LIVING LIFE KING-SIZE
WAS WHAT HARSHAD
MEHTA, WHO CAME FROM
A MIDDLE-CLASS FAMILY,
ASPIRED FOR. HE MADE A
FORTUNE ON THE BOURSES
BEFORE HIS LUCK RAN
OUT. THE WORD SCAM WAS
COINED FOR HIS MISDEEDS
THAT BLEW UP IN 1992.

2
VERY LITTLE COMES
CLOSE TO INDIA’S MOBILE
REVOLUTION. IN 1995,
WHEN TELECOM MINISTER
SUKH RAM SPOKE TO JYOTI
BASU, WEST BENGAL’S CHIEF
MINISTER, NO ONE COULD
HAVE ANTICIPATED WHAT
WAS TO UNFOLD. FROM
BEING A TOY OF THE RICH,
THERE'S A MOBILE IN ALMOST
EVERY INDIAN'S HAND NOW.

3
PHOTOGRAPH BY BHAWAN SINGH

THE TERM DREAM BUDGET

IS OFTEN LINKED TO
P. CHIDAMBARAM.
IN 1997, HE DID THE
UNTHINKABLE BY CUTTING
PERSONAL INCOME TAX
AND CORPORATE TAX. HE
ALSO PAVED THE WAY FOR
MORE INVESTMENT FROM
FOREIGN INSTITUTIONAL
INVESTORS. THIS BUDGET
MANAGED TO MAKE
EVERYONE HAPPY.

5 September 2021 Business Today 143

 THE NEXT INDIA OPPORTUNITY

4 5 6
AMITABH BACHCHAN ON THE SMALL DHIRUBHAI AMBANI WAS INDIA’S MOST “A PROMISE IS A PROMISE,” SAID
SCREEN WAS AS INCONCEIVABLE AS INFLUENTIAL BUSINESSMAN. AFTER HIS RATAN TATA WHEN HE UNVEILED THE
SNOW IN SOUTH INDIA. IN 2000, WHEN PASSING, HIS SONS MUKESH AND ANIL TATA NANO, WITH A PRICE TAG OF
HE PLAYED HOST ON STAR PLUS’ KAUN TOOK CHARGE. SOON, A BITTER FEUD $2,500, ON A COLD DELHI MORNING IN
BANEGA CROREPATI, IT REVIVED THE ENSUED, LEADING TO THE SPLIT OF THE 2008. IT REMAINS A SEMINAL MOMENT
NETWORK AND THE ACTOR’S CAREER. RELIANCE EMPIRE IN 2005. IN INDIA’S AUTOMOBILE HISTORY.

144 Business Today 5 September 2021

 PHOTOGRAPH BY HEMANT PITHWA

6
5

5 September 2021 Business Today

145
PHOTOGRAPH BY AMIT KUMAR PHOTOGRAPH FROM INDIA TODAY ARCHIVES
 THE NEXT INDIA OPPORTUNITY

7 8

PHOTOGRAPH BY CHANDRADEEP KUMAR

9
PHOTOGRAPH BY MANDAR DEODHAR

7
DEMONETISATION, IN 2016, WAS AN
ATTEMPT TO FLUSH OUT BLACK MONEY.
PANIC ENSUED FOR A WHILE. ONCE THINGS
WERE CALM, 87-YEAR-OLD GULABO FROM
HATHRAS WAS AT THE RBI OFFICE IN THE
CAPITAL TO RETURN HER OLD NOTES.

146 Business Today 5 September 2021

 PHOTOGRAPH BY MANEESH AGNIHOTRI

8 9
NOTHING HAS HIT MANKIND AS TRAGICALLY WHEN THE STOCK MARKET DOES WELL,
AS COVID-19 IN A 100 YEARS. AS BUSINESSES INVESTORS GO TO TOWN. THE CURRENT
SHUT DOWN IN 2020, ALL THAT MATTERED BULL RUN HAS LED TO HANDSOME
WAS HUMAN SURVIVAL. FEARING THE RETURNS FOR MANY. THUS, THE SENSEX
WORST, MIGRANTS LOOKED FOR ANY WAY TO BREACHING THE 50,000-MARK IN 2021
GET BACK HOME TO ESCAPE THE VIRUS. WAS TIME FOR SERIOUS CELEBRATION.

5 September 2021 Business Today 147

 Money Today
R
anita Gupta tried to log on to the new in-
come tax portal to file her income tax return
(ITR). She could not do so as she did not re-
ceive the OTP on her registered mobile num-
ber. Akhilesh Singh did manage to sign in and
file the ITR. But the acknowledgment disap-
peared and he could not download it later. “The new web-
site is pathetic. It will test your patience to the limit. I filed
ITR-1, but it took me days,” he says.
Some people were able to file ITR but could not e-veri-
fy. “The site did not accept the OTP sent on the registered
number. It redirected me to an infinite loop of I-T and bank
portals,” says Punit Bhargava.
That is not all. The portal does not auto-generate tax
148 Business Today 5 September 2021
deducted at source (TDS) values. In case it does, there are
calculation errors. The pre-filled TDS information in ITR
forms and what appears on Form 26-AS is not matching. At
times, the ‘forget password’ function is not working. If you
enter the wrong password three times, the account gets
locked. In some cases, legal heirs of the deceased have been
unable to get themselves registered for filing ITR, submis-
sions or appeal.
This is a small list of issues taxpayers are facing while
filing their ITRs on the new portal. The last date for filing
is September 31, but there are problems galore, not just for
taxpayers but also seasoned chartered accountants (CAs).
“The utility of all income tax return forms is not available as
of now. Only ITR - 1, 2 and 4 are available; ITR – 3, 5, 6 and 7 are
 UNABLE TO
FILE ITR? TAKE
SCREENSHOTS
OF ERRORS,
SEND MAILS
TO ASSESSING
OFFICER TO
AVOID PENAL
PROCEEDINGS
BY APRAJITA SHARMA

still awaited,” says Anurag Jain, Partner, ByTheBook Con-
sulting LLP. Forms 10-A and 10-B, for registration of chari-
table institutions, are also not available on the portal.
Even CAs are wondering why there was a need to build
a new portal when the old one was working fine. “There was
no need to launch a new website at a time when people are
struggling to work from home (WFH). The old website was
working fine. Just a few edits would have sufficed. Evaluat-
ing the new website and guiding the team in the WFH situa-
tion is a challenge for all CAs,” says Mohnish Wadhwa, Part-
ner, Wadhwa & Shah, a chartered accountancy firm.
Simple issues related to digital signature, PAN and Aad-
haar have become a pain for taxpayers. “Digital signatures
were registered on the old website. The taxpayer has to re-
register the signatures on the new portal, which shows an er-
ror,” says Wadhwa.
In another issue, the new income tax portal is trying to
match PAN data with Aadhaar data. “In many cases, only the
birth year is appearing in place of birth date in Aadhaar data.
Aadhaar carries the residential address in a majority of cases
whereas address on PAN could be business/office premises,”
says Wadhwa.
Private software and third-party apps are not working
smoothly either. “Taxpayers have been facing issues such as
slow page responsiveness and load time errors. Many tax-
payers have reached out to us. Even tax experts are reporting
issues with certain compliances,” says Archit Gupta, Found-
er and CEO, ClearTax.

5 September 2021 Business Today 149

Money Today – ITR Filing
Refunds, Queries Pending
Jain says there are some FY20 returns which are not yet
processed. Hence, there is a delay in refunds. “Taxpay-
ers are not able to file tax returns under Section 148 of the
Income Tax Act for earlier years as download of utility is
happening erratically and attachment of digital signature
is not taking place consistently even though the return is
required to be filed within 30 days of the receipt of notice,”
he says. Section 148 grants an assessing officer (AO) the
power to assess or re-assess any taxable income that may
have gone under the radar.
Apart from this, there is no option to send a request for
obtaining intimation under Section 143(1) where tax de-
mands have been raised, he adds. The facility for filing of
online rectification application is also not available on the
portal yet.
The written submissions of already filed appeals
which have been partly heard are also not reflecting on
the portal. “Old rectification applications u/s 154 which
are pending are not on the portal. Taxpayers are unable
to access old records. There are anomalies in the data.
MAKING IT WORK
THE PROBLEMS TAXPAYERS ARE FACING AND
THEIR POSSIBLE SOLUTIONS
ITR filing: Problems Galore
Delayed filing due to portal’s slow response
Missed/mismatched data entries in ITRs
Issues in e-verification
Delays in receiving OTPs
‘Forget password’ not working; accounts
getting blocked
ITR Forms 3, 5, 6 and 7 are awaited
Digital signatures need re-registration
Returns filed for FY21 not being processed
Written submissions of already filed appeals not
appearing on the portal
No response to grievances filed
through the new portal
How to Avoid Penalty
Note down the delays and their impact on ITR filing
Preserve screenshots of errors showing
up on the portal
Note down the limitations in picking up
data by the portal
Inform all details about it to your
Assessing Officer through e-mail
150 Business Today 5 September 2021
All this is making it hard for assessees to reply to notices
and manage compliances for which due dates are fast ap-
proaching,” says Wadhwa.
No Convincing Roadmap
Over 700 emails dealing with 2,000 issues, including 90
unique issues/problems, have been received from various
stakeholders, Minister of State for Finance Pankaj Chaud-
hary informed the Rajya Sabha in July. The grievances filed
through the new website have remained unanswered. “The
FM says the issues will be resolved soon, but how? What is
the roadmap? What about the pile-up which has happened
so far?” says Wadhwa.
The solutions offered so far are acting as an additional
burden. For example, CAs have to submit Form 15CB on-
line for allowing clients to make foreign remittances. “The
government said that since the website is not working, we
can fill an offline Form 15CB and submit to bankers for the
purpose of convenience, but with a condition that when
the website is in place, the CA will file all historically issued
physical Form 15CBs online also. Where is the ease of doing
business here?” asks Wadhwa.
What You Should Do
“Any new system takes time to stabilise and there are teeth-
ing issues which get resolved over time. Due to the complex-
ity of taxation and fine-tuning of user experiences, some
bugs and issues may exist. Our experience tells us that it may
take longer for things to stabilise,” says Gupta of ClearTax.
There could be further extension of deadlines. “In case
the due date for ITR filing is extended, the government
should ensure that no interest is charged on outstanding tax
liability. In FY20, on account of extension of the deadline,
the government had provided relief under Section 234A (i.e.
interest for delay in filing of tax return) to taxpayers whose
self-assessment tax was less than `1 lakh. This year, due to
glitches in the I-T portal, the government should provide
relief to all taxpayers,” says Jain.
What the government may or may not do is uncertain.
What you should do is clear — safeguard yourself from pe-
nalisation due to glitches in the portal.
Sujit Bangar, Founder, Taxbuddy.com, has some sugges-
tions: Mostly, the government extends dates or issues spe-
cific notifications for interest and penalty. To shield oneself
from such consequences, we may take proactive steps such
as noting down the delays due to the portal and its impact on
ITR filing, preserving the screenshots of such issues and in-
forming the AO through an e-mail. Also, note down the limi-
tations in picking up data by the portal and inform the AO of
the same to guard against initiation of penal proceedings.”
We can only wait for more clarity and further deadline
extensions. “Bring back the old website” is the clear voice
coming in from taxpayers and charted accountants alike.
(The writer is a freelancer based in New Delhi)

ITC’s Tech Enthusiast
PHOTOGRAPH BY YASIR IQBAL
Technology has always fascinated
ITC Chairman and MD Sanjiv Puri. In
fact, way back in 2000, he was asked
by his mentor Y.C. Deveshwar (former
Chairman and CEO, ITC) to build an
ecommerce website. “We knew it was
ahead of time, but I spent a consider-
able amount of time reading a lot of
books on technology and building
it,” remembers Puri. The book that
influenced him the most during those
days was Larry Downes’ “Unleashing
The Killer App”. It talks about digital
152
Network
transformation of businesses. Puri
says he refers to that book even today
as the diversified conglomerate looks
to become a digital-first company. He,
in fact, spends a lot of his free time
reading about AI, ML and big data.
One of his recent initiatives has been
to set up a digital innovators’ lab which
has a bunch of young employees with
a mandate to come up with cutting-
edge digital solutions. He credits his
younger colleagues for a lot of his
digital knowledge. “I learnt a lot about
Business Today 5 September 2021
bitcoins from my younger colleagues.
I realised that only 3 per cent of my
generation has dabbled in bitcoins,
while in the new generation, it is over
30 per cent.”
Puri likes to call himself a book
worm. “I am the serious types, I enjoy
reading historical books, about how
nations and civilisations are built.
I also read a lot about health and
nutrition. I recently read a book on
organisational strategy, ‘Exponential
Organisations’.” – AJITA SHASHIDHAR
 LESSONS
FROM TENNIS
Had Manos Nikolakis, lockdown, he has
General Manager, BIC seldom missed a
Cello India, not opted game of tennis. "I
for a career in the have a coach to train
corporate world, he me, and I coach my
would have probably children myself,"
become a profes- he says. Tennis has
sional tennis player. helped him inculcate
“I am a sports lover. I self-discipline. "It
always wanted to play teaches you to stay
professional tennis or focussed and never
become a coach, but give up. For instance,
I couldn't do that.” if your game doesn't
Nikolakis, who go as expected on
took over the reins of a particular day, you
the Indian operations adjust your plan and
in late 2019, says he adopt other tech-
is fortunate to be niques. It applies to
living in an apartment business too. If your
complex which has a strategies are not
tennis court. Barring successful, you need
the initial months to keep trying."
of the Covid-19
WALK AT – AJITA SHASHIDHAR

YOUR OWN PACE

TWO YEARS AGO, Sampath Reddy, Chief Invest-
ment Officer at Bajaj Allianz Life Insurance,
went for a trek to the Everest Base Camp with
his colleagues. The trip stands out as the most
memorable one for him. “I prefer treks and ad-
venture-related vacations, hence heading to the
Himalayas is always my preference compared to
a trip to Dubai or Maldives,” he says. His interest
in treks also comes from his daily fitness regime.
“I have been a regular on the badminton court,”
says Reddy, who used to play basketball during
his college days.
He has learnt some big lessons from his
trekking adventures. “One needs to push one’s
boundaries by going out of the comfort zone
and travel that extra mile,” says Reddy. Another
big takeaway is that your fellow trekkers are not
competing with you but with themselves. “That
makes a difference. It also teaches you resilience
and gives you mental agility to sail through the
difficult weather and the uneven routes,” says
Reddy, whose industry witnessed a rough oper-
ating environment post the Covid outbreak.
The advice he got while climbing the Everest
base camp — “walk slow or walk at your own
pace” —is very apt in life and work. Sampath,
who loves to go by the advice of friends and
family, is waiting for them to come up with travel
plans once the lockdowns are lifted.
– ANAND ADHIKARI

5 September 2021 Business Today 153

 “SOLUTIONS ARE IN
THE MARKETPLACE AND
NOT IN THE BOARDROOM”
KALPESH R. PARMAR, GENERAL MANAGER, MARS WRIGLEY, INDIA

What was the problem you were

grappling with?
I joined Mars Wrigley, India, in 2020, and
my goal since has been to create a billion
better moments for our consumers, cus-
tomers, and the community. My vision has
been to make these brands relevant, acces-
sible and affordable to Indian consumers
while serving the community where we
live and work.

Who did you approach and why?

I connected with my internal teams, exter-
nal partners such as distributors and retail-
ers, and spoke to consumers to get insights
and feedback. Having returned to India
after more than a decade, it was important
for me to understand the socio-economic
landscape, the unique diversity of the coun-
try, the needs of our consumers as well as
market opportunities so I could channel
our collective energies and resources in the
right direction.

What was the best advice you ever

received?
A piece of advice that has always guided
me is — the solution is in the marketplace
and not in the boardroom. We need to look
beyond our four walls to ensure that our
strategies are in alignment with consumer
needs. Only then can we be dynamic enough
PHOTOGRAPH BY RAJWANT RAWAT

to make our products relevant.

How effective was it in resolving

the problem?
The journey has begun, with consumers,
customers and the community at the front
and centre of everything we do today. It is
backed by a purpose-led vision that believes
in mutuality as a key principle to create bet-
ter moments for stakeholders.

154 Vol. 30, No. 18 for the fortnight August 23, 2021 to September 5, 2021 . Released on August 23, 2021. Total number of pages 156 (including cover)
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