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Industry seeks tax reforms during meet with revenue secy

The Confederation of Indian Industry (CII) emphasized the need for a significant increase in government capital expenditure, proposing a 25 per cent rise compared to the 16.8 per cent increment outlined in the interim budget…reports Asian Lite News

In a series of pre-budget consultations, industry leaders from the Confederation of Indian Industry (CII), the PHD Chamber of Commerce and Industry (PHDCCI), and the Federation of Indian Chambers of Commerce and Industry (FICCI) presented a slew of recommendations aimed at bolstering economic growth, enhancing ease of doing business, and fostering sustainable development.

The meetings with Revenue Secretary Sanjay Malhotra and his team highlighted key areas for government focus in the upcoming Union Budget.

The Confederation of Indian Industry (CII) emphasized the need for a significant increase in government capital expenditure, proposing a 25 per cent rise compared to the 16.8 per cent increment outlined in the interim budget.

The CII’s focus is on creating rural infrastructure, including irrigation systems, warehousing, and cold chain facilities, to support agricultural productivity and rural economic growth.

CII suggested, “To boost consumption demand in the short term, steps such as providing a marginal relief in income tax at the lower end of the spectrum with taxable income upto Rs 20 lakhs; reduction in excise duties on Petrol and Diesel: upward revision of minimum wages of MNREGA; raising DBT amount under PM Kisan”.

CII also proposed a mission on Advanced Manufacturing and Advanced Materials to enhance India’s manufacturing capabilities.

They emphasized the need for a strong focus on agriculture and rural development, suggesting the creation of non-farm rural jobs through village-level entrepreneurship and the development of integrated rural business hubs.

Furthermore, CII called for the establishment of a Green Transition Fund to support the decarbonization of industries, particularly for Micro, Small, and Medium Enterprises (MSMEs).

They also highlighted the need for a National Mission on Water Security and proposed an employment-linked incentive scheme for labor-intensive sectors with high growth potential.

The CII’s comprehensive suggestions included the creation of a Social Security Fund for gig and platform workers and the formulation of a roadmap to increase public expenditure on health to 3 per cent of GDP and education to 6 per cent of GDP by 2030.

They also proposed the next set of Goods and Services Tax (GST) reforms, advocating for a three-tier GST structure and the inclusion of petroleum, real estate, and electricity under the GST regime.

The PHD Chamber of Commerce and Industry (PHDCCI) met with Revenue Secretary Sanjay Malhotra to discuss their budget recommendations.

Hemant Jain, Senior Vice President of PHDCCI, called for an increase in personal tax exemptions and a reduction in penalization clauses to simplify the tax system and ease the burden on taxpayers.

He said, “We recommended that personal tax exemptions should be increased. Additionally, penalization clauses, which the government has reduced over the last two terms, should be further minimized. The government must ensure ease of doing business and avoid repetitiveness in the taxation procedure, ensuring that common people are not harassed.”

Mukul Bagla, Chair of the Direct Taxes Committee at PHDCCI, highlighted the heavy tax burden on the Indian middle class, particularly those earning Rs 15 lakhs or more. (ANI)

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Business India News Investment

Chennai Emerges as South India’s Industrial Hub

The presence of industrial corridors, acting as an economic ecosystem, fosters heightened economic activity within the transportation corridor. Like a vital artery, it serves as the central hub of economic vitality in the region…reports Asian Lite News

Chennai is slowly but surely becoming the industrial hub of South India, if not the entire subcontinent. With the government’s plans to upgrade the highway roads, travel time will be reduced as well as vehicle operating costs. As a major seaport, the city’s proximity to raw materials, easy access to major seaports, airports, and different parts of Southern India has rendered it a major industrial hub.

The presence of industrial corridors, acting as an economic ecosystem, fosters heightened economic activity within the transportation corridor. Like a vital artery, it serves as the central hub of economic vitality in the region.

In 2022, the Government of India greenlit 8 projects to develop industrial corridors between major hubs in the country. These projects will take place under the National Industrial Corridor Development and Implementation Trust (NICDIT).

One of these projects is the 96-km Chennai-Bengaluru Industrial Corridor (CBIC). This project is already underway and is scheduled to be completed by 2025. With the completion of the project, the travel time between Chennai and Bengaluru will be cut to two to three hours.
“The project will also increase economic activity in the region by opening up new areas for industrial development. There is potential for manufacturing facilities, warehousing facilities along the corridor. Also, the project will be closer to the port and will facilitate easy cargo movement on the corridor,” Suresh Krishna, State President of CREDAI, Tamil Nadu, told The Hindu.

The CBIC will go through cover Chennai, Sriperumbudur, Ponnapanthangal, Ranipet, Vellore, Chittoor, Bangarupalem, Palamaner, Bangarpet, Hoskote, and Bengaluru.
CBIC: Prime Investment Destination

The Chennai Bangalore Industrial Corridor (CBIC) stands as an enticing prospect for investors, offering a multitude of advantages. Positioned at the onset of a major industrial corridor, Chennai promises abundant job opportunities. Escaping urban congestion, many are gravitating towards the city’s outskirts, lured by available land parcels, ideal for realizing their dream homes.

This burgeoning industrial landscape has given rise to a thriving economy, with job prospects that foster personal and professional growth. Renowned for its top-notch infrastructure and connectivity, Chennai boasts an exemplary transportation system. This includes ongoing initiatives, including metro expansions toward Parandur, which promise enhanced accessibility for suburban residents, significantly reducing travel times.
Furthermore, Chennai’s strong economic foundation, fueled by diverse industries like manufacturing, automotive, IT, and logistics along the CBIC, continues to bolster its status as the state’s economic hub.

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Business

Indian Consumertech Industry Set to Reach $300 Billion by 2027

About 880 million people aspire to spend on fashion and apparel, and 220 million seek to spend on on-demand services…reports Asian Lite News

Driven by an urge for personalised experiences among people, the Indian consumertech industry is likely to reach $300 billion by 2027, growing at a CAGR of 25 per cent, a report showed on Tuesday.

The current total addressable market (TAM) of the consumertech industry is valued at $100 billion, with the dominant sectors being mobility (30 per cent share of the market) which includes ride-hailing apps, automobile marketplace and online car rental market followed by entertainment (25 per cent) which includes print, digital, and television media.By 2027, fashion is expected to overtake entertainment as the second leading sector with apparel and accessories, beauty and personal care, footwear, jewellery and watches, according to the report by Chiratae Ventures, in collaboration with consulting firm 1Lattice and powered by Google.“We have, till date, invested $450 million into the sector. Key winners backed by Chiratae include Flipkart, Myntra, Cult.fit, Firstcry, Lenskart, GlobalBees, Policybazaar, PlaySimple, Curefoods, Fibe and Rentomojo, to name a few,” said Sudhir Sethi, Founder and Chairman of Chiratae Ventures.“We continue to invest in companies such as Agrostar, Healthifyme, Miko, Artium, and a new breed of consumer deeptech companies such as KBCols and Aether as well,” he informed.

Over 500 million Indians now seek entertainment and gaming services on a daily basis, Over 1.2 billion people in India need good healthcare, and 1.1 billion people have a bank account and seek to invest in financial services.About 880 million people aspire to spend on fashion and apparel, and 220 million seek to spend on on-demand services.

This has resulted in an increased focus on personalisation, a rise in experiential retail and a growing influence of social media, the report mentioned.“The Indian Consumertech sector is experiencing swift rise of over-the-top (OTT) services on the subscription side, an increasing involvement of women in gaming, commerce and social media, and a notable rise in green mobility solutions such as EV sales, said the report.“The rapid evolution of AI presents an incredible opportunity for businesses to engage with their consumers in newer, more meaningful ways that deliver effective purchase outcomes whilst also responding to their need for privacy,” said Roma Datta Chobey, Managing Director – Digital First Businesses, Google India.Consumers, on average, dedicate over four hours daily to their smartphones.

The fintech apps dominates usage, with 77 per cent of respondents leveraging it, primarily due to robust security features and a user-friendly interface.Following closely, entertainment apps capture a significant share at 70 per cent, with on-demand services being perceived as essential expenses in the daily lives of about 70 per cent of consumers, the findings showed.Gaming, e-commerce, and healthtech are also gaining traction among Indian digital consumers.“This growth potential is underscored by the ambitions of Indian homegrown startups, driven by robust revenue growth and eyeing global expansion, fuelled by an ever-growing digital native user base,” said Roma Dixit, Director, Financial Services, 1Lattice.

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Fashion Lite Blogs

Changing textile industry through technology

Nurturing the supply of natural fibres to what is an expanding sector amid the harsh realities of climate change is a challenge that technology-powered sustainable solutions can help surmount…writes Mayank Tiwari

From the mulberry and cotton farms to the retail stores stacked with endless rows of glittering sarees, stakeholders throughout the natural fibre supply chain aspire to be self-sufficient,  besides wanting to guard against the uncertainties of the market. Adoption of digital solutions, across the board, can ensure that the stakeholders, particularly those at the grassroots – farmers, reelers, and weavers – are deservingly rewarded.

Meanwhile, the retailer, equipped with knowledge of the entire lifecycle of both the raw materials and the fabric, can leverage their superior quality to set the price with greater precision. Enhanced quality, coupled with a boost in overall productivity, has ensured a manifold increase in the income of every stakeholder that is part of the natural fibre value chain. In the recent past, many villages have had farmers, reelers, and weavers, scripting such success stories with the assistance of technology, coupled with an enabling ecosystem. Digital solutions have enabled stakeholders in the largely rural textile sector to supplement the benefits they have accrued from improved internet connectivity and smartphone penetration.

Assurance of quality

To give an example, the weaving of silk is a highly complex task. Silk cocoons harvested from mulberry leaves need to be transported from the farms within a stipulated period of time since each minute lost in transit can affect the quality of yarns. Mulberry farmers often complain of the ordeal they have to endure in transporting silk cocoons  – these include having to rise at odd hours, securing transport, and arranging for compact storage spaces.

Digital integration of the entire ecosystem on an app, for instance, would enable farmers to almost immediately transport the harvested cocoons to the reelers /yarn manufacturers. Immediately after harvesting the cocoons, once the farmer sends an alert on this app, he can leave the task of transporting them to able logistics handlers. Meanwhile, with third-party vendors ensuring the transport of cocoons in sterile chambers, neither the reeler nor the farmer needs to worry over the probable deterioration of the cocoons and can rest assured of being fairly remunerated. Streamlining the supply chain, right from the farm to the retail outlet, will usher in consistency in pricing, while data availability on both domestic and global markets will help sustain perennial demand.

Scope for experimentation

Today, leveraging the immense scope of 3D printing, and computer-aided design technologies, weavers can be more adventurous in the design of garments. Increased employment of 3D printing can result in a proportionate reduction in the utilisation of natural resources such as water. Furthermore, as the industrial world prepares to embrace the full-fledged capabilities of ‘Industry 4.0’, the use of 3D printers at a textile mill ensures that the transition of the traditional handloom mill into a ‘Smart’ manufacturing plant is seamless.

Towards sustainability

Shrinking arable land, depleting natural resources, and rising pollution levels, are among the problems expected to effect a marked reduction in the overall output of the natural fibre sector across the world. Cognisant of these challenges, stakeholders in the sector are proactively seeking sustainable alternatives to cotton and silk.

Leveraging an extensive suite of advanced digital solutions, the industry is now experimenting with banana peel, and pineapple leaf, to meet the twin objective of meeting growing demand, while keeping the industry’s overall carbon footprint to a bare minimum.   Notwithstanding the untapped potential of the man-made fibre market in the country, the natural fibre ecosystem remains the bedrock of India’s textile and apparel industry. It is the abundant availability of raw materials – India is the largest producer of cotton and the second largest producer of silk – that is driving sustained investment in the sector[1].

Nurturing the supply of natural fibres to what is an expanding sector amid the harsh realities of climate change is a challenge that technology-powered sustainable solutions can help surmount.

Ready financial assistance at the fingertip

Farmers engaged in the cultivation of mulberry, cotton, or other natural fibres, often struggle with a wide range of problems, ranging from difficulties in securing financial assistance, and quality raw materials, to poor logistics infrastructure, and inconsistent pricing. Although the GoI has rolled out plenty of schemes aimed at easing access to finance for these farmers, a lack of awareness about these initiatives prompts them to turn to the more traditional financial institutions. But banks and NBFCs often fail to factor in the constraints under which these farmers toil – problems range from the long cash conversion cycle to the equally short lifespan of the raw produce.

Consequently, farmers either find the terms offered on loans unattractive or secure limited funds that severely curtail the scope of their operations. However, fintech firms, through the use of credit scores, big data tools, and a more transparent operational framework, are endeavouring to lend a much-needed hand to farmers[2]. Farmers cultivating mulberry on a patch of land as small as half an acre can now apply for loans on their smartphones, owing to the digitisation of the financial process. The transparency that the digitised financial ecosystem guarantees has also simplified the process for claiming insurance, with stakeholders being spared the ordeal of a lengthy verification procedure.

A long way to go

Although more and more weavers, farmers, and reelers, not only in the silk value chain but across the natural fibre ecosystem, are turning to technology to improve their livelihoods, the harsh reality of an overwhelming majority of those in the handloom textile sector in India – more than 67% of the 31.4 lakh handloom weavers earn less than INR 5,000 per month[3] – attests to the need to accelerate digitisation of the ecosystem. In addition to the handloom workers, the textile and apparel industry in India is the source of livelihood for nearly 14 lakh other stakeholders. At the end of the previous fiscal year, exports from the textile and apparel sector earned India USD 44.4 billion in revenue, according to the Indian Brand Equity Foundation, a 41% increase from the figure recorded in 2020-21[4]. This buoyant trend in the sector has enabled the GoI to set ambitious targets both in terms of output, and revenue – an export revenue target of USD 100 billion by 2030. Apprised of the role of technology in ensuring the accomplishment of such steep targets, India has also been incentivising the adoption of digital solutions by all stakeholders in the textile value chain.

Digitisation of the natural fibre ecosystem is not merely desirable but a prerequisite if India is to optimise the capabilities of its enormous workforce and the abundance of resources feeding the textile sector in the country.

(Mayank Tiwari is the Founder and CEO of ReshaMandi, a B2B marketplace for fashion and textiles in India)

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-Top News USA

Industry hails outcomes of Modi’s US visit

Washington DC, June 22 (ANI): Prime Minister Narendra Modi and the United States President Joe Biden share a warm embrace during a ceremonial welcome hosted for PM Modi at the South Lawns of the White House in Washington DC, USA on Thursday. (ANI Photo)

PM Modi arrived in the US on Tuesday for a state visit which is seen as a milestone in ties between the two countries that would deepen and diversify their partnership…reports Asian Lite News

The Indian Industry has hailed the outcomes of Prime Minister Narendra Modi’s visit to the US.

Speaking to ANI, Chairman Mahindra Defence and Aerospace, SP Shukla on PM Modi’s US visit said: “…It’s a trend-setting visit. PM Modi addressing US Congress for the second time sends out a very important message that the two nations wish to work together. The message goes to the industrial community, business, community, and policymakers and intent starts getting translated into action. Both leaders have clearly specified that technology will be the cornerstone of the partnership…”

Federation of Indian Chambers of Commerce & Industry (FICCI) President, Subhrakant Panda, said PM Modi’s landmark visit to the US has been very successful with several substantive outcomes relating to semiconductors defence acquisitions, access to critical technology, the Artemis Accord for space cooperation and the resolution of six outstanding trade disputes.

“I’m very confident that this is the start of a new chapter in the bilateral relationship with mutual trust and convergence of views on strategic issues. It will benefit not just the two nations but the world at large. As the prime minister said the future is AI America and India…,” he said.

While former FICCI President Harsh Pati Singhania called PM Modi’s US visit historic.

“The strategic accords concerning semiconductors, defence, space collaboration and research issues are pathbreaking and significant. India will gain from the technology of the United States and make itself much more self-reliant. And the US will benefit from the number of jobs and other new opportunities that arise out of this partnership. We from industry are very excited to see what lies ahead and for the great opportunities for development, cooperation and further economic growth between our two nations..” he said.

PM Modi arrived in the US on Tuesday for a state visit which is seen as a milestone in ties between the two countries that would deepen and diversify their partnership.

PM Modi has visited the US five times since taking the reins of the country in 2014 but his recent visit is his first with the full diplomatic status of a state visit, indicating the strengthening bond between Washington and New Delhi.

Confederation of Indian Industry (CII) President R Dinesh on the PM’s visit said: “MSMEs are the backbone of our country’s growth. MSMEs finding a mention in the joint statement between India & US is a significant development. We welcome this & thank the PM for it. The expanse & depth with which the approach has been made by PM has never been seen before.”

Edelweiss Group founder & former President FICCI, Rashesh Shah, said: “This was one of the most important events, economically & geopolitically. In the last 2-3 yrs, this entire change in Geopolitics, the China Plus One strategy, plus India has also improved a lot. I think our physical infrastructure, digital infrastructure have come a long way. Success stories like Adhaar & UPI have become global benchmarks. This trip has put the switch on to make India more attractive to global businesses & global investors….” (ANI)

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-Top News UK News

Fusion robots at work in the UK space industry

A replica section of a typical spacecraft provided by Satellite Applications Catapult was assembled at RACE…reports Asian Lite News

Culham and Harwell, Oxfordshire – UK Atomic Energy Authority (UKAEA) and the Satellite Applications Catapult have partnered to demonstrate how advanced remote handling and robotics technology developed for fusion energy research can be used to provide maintenance for in-orbit satellites.

The technology has been developed and tested at UKAEA’s Remote Applications in Challenging Environments (RACE) robotics centre in Culham, Oxfordshire.

The demonstration adds to evidence that the potential economic spill over of fusion research reaches far beyond the sector itself, and even as far as the servicing of spacecraft in orbit.

Fusion is the process that powers the sun and stars. The energy created promises to be a safe, low carbon and sustainable part of the world’s future energy supply.

Dr Indira Nagesh, Principal Engineer of UKAEA​,​ said of the network spillover: “The rewards for recreating the ultimate fusion energy source here on Earth are enormous, with the potential for near limitless power for generations to come. Right now, we’re proving that our technology has lots more immediate benefits in adjacent sectors.

“Identifying technical challenges and solving them for in-orbit servicing and repair is exciting. It will greatly help to improve the longevity of spacecraft and reduce space litter.”

Jeremy Hadall, Robotics Development Lead at the Catapult, said: “Improving our ability to perform close-proximity operations in orbit with advanced robotics, will unlock a range of commercial opportunities in space including debris removal, spacecraft servicing, and even the manufacture of large structures in orbit. This trial moves the space industry one step closer to realising these exciting possibilities.”

Currently, around 6,000 satellites are in orbit around the Earth, but only 40% are operational. This space debris poses a danger to all spacecraft which have to perform thousands of avoidance manoeuvres each year to prevent collisions. Servicing and maintenance can extend operational lifetimes and the same technologies can be used to support active debris removal missions.

Hadall continued: “While the space industry has assembled structures and serviced them in the past, it has been extremely costly and required national agencies to lead. However, there is a significant commercial requirement to remove these barriers using robotics as we expand our reach beyond Earth.”

A replica section of a typical spacecraft provided by Satellite Applications Catapult was assembled at RACE.

Demonstrations were carried out in the Automated Inspection and Maintenance Test Unit (AIM-TU), a highly modular robot cell for research and development containing two UR10e (Universal Robotics) robots​ with 1.3 ​​metre reach​.

A ‘digital twin’ of the operation using specialist software was also completed to show how operators can take over the manual command of the operation, if required, and train the system to carry out new missions.

While the automation isn’t ​​space-qualified, engineers have demonstrated how such processes can potentially be replicated in space by understanding technical challenges in implementing remote handling capability.

“The demonstrations have shown how fusion energy technologies can support faster and safer operations,” added Hadall.

“We’re pleased to be working with UKAEA on this collaboration and envisage the relationship to continue as both organisations look to spur innovation by addressing common challenges,” he concluded.

Since its opening at Culham, Oxford, in 2016, UKAEA’s RACE facility has conducted research and development in the use of robotics to protect people in challenging environments.

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Business UAE News

MEBAA Show to reassess dynamics of aviation industry

MEBAA Show (Zawya.com/Press Release)

The MEBAA Show will bring a refreshed focus on in-person networking for the business aviation industry, with the aim of generating return on investment (ROI) for exhibitors…reports Asian Lite News

MEBAA Show 2022 is set to showcase the significant growth being experienced in business aviation, private jet, and the charter flight markets across the Middle East and Africa region. With its new and unique features, the event will reassess the dynamics of the industry, offer a new perspective and will be host to a range of opportunities aimed at bringing the region’s business and private aviation community together again.

2021 was marked as the busiest year for global business jet activity, the Middle East region alone showing some of the strongest growth in business jet demands, notably from the United Arab Emirates, which was up by 73% compared to 2019. The business aviation market in the Middle East maintained its growth momentum in 2022, with flights up by 47% in May, in comparison with same period in 2019.[1]

Mohammed Al Husary, Co-Owner, Founder and Executive President of UAS International Trip Support added: “Industry opportunities lie in delivering increased value to our clients, and this means increased efficiency. This is an operator’s number one priority.  The air charter and cargo markets are looking particularly promising going forward and, as always, pandemic, political unrest, or otherwise, clients continue to demand the efficiency, speed, and safety that business aviation provides.”

A host of new features planned at MEBAA Show include Biz Av Talks which will be an interactive gathering for sharing knowledge and expertise with industry leaders and specialists. The sessions on the show floor are designed to provide practical insights and advice on how the private aviation supply chain can overcome challenges and meet the demands of the future.

Ali Ahmed Alnaqbi, Founding and Executive Chairman of MEBAA, said: “We are placing a major focus on networking, industry trend debates and engagement in the upcoming edition of the MEBAA Show. This is key for building partnerships and exchanging knowledge and expertise. The show will help contribute to the rapid growth of the business aviation industry and we are delighted to see great interest from major business aviation companies in MEBAA Show 2022, who will join hands to take the business aviation sector to the next level.” 

Paras Dhamecha, Managing Director, Empire Aviation Group added: “Business aviation is all about people, so we are looking forward to meeting our customers, partners and friends across the industry, face to face, to drive the industry forward. The future of the sector looks very positive across the Middle East and international markets as the industry evolves and develops quickly. We are well positioned to support business aviation in the region and beyond, from our base in Dubai.”

The MEBAA Show will bring a refreshed focus on in-person networking for the business aviation industry, with the aim of generating return on investment (ROI) for exhibitors. Today’s exhibitors value quality over quantity and the Show will provide a dedicated platform for world-class companies within the business aviation sector to showcase the latest innovation.

Attendees can expect to see the launch of new features and activations across the show floor to ensure interactivity and engagement. Some of the new show features include the Future Focus Zone where the future of business aviation will be on display, and a dedicated VIP Programme will ensure VIP attendees get an experience they are accustomed to including a dedicated registration and exclusive access to the luxurious VIP lounge. Other features include a host of private meeting suites, digital café, White Bar and outdoor entertainment feature areas, which will deliver a festival feel in December. The newly launched AI-powered MEBAA Connect application will facilitate business connections between exhibitors and visitors. In addition, the Operators’ Lounge will be dedicated to supporting networking with select regional and international operators.

The MEBAA Show, the Middle East’s leading business aviation platform, is set to return from 6 – 8 December 2022 at Dubai World Central (DWC) Airport, Dubai Airshow site.

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Business India News

India to recover pandemic battered aviation industry

Chowdhury pointed out that advance bookings for the upcoming summer season have also seen an encouraging trend driven by an expected revival in the hospitality and tourism industry…reports Rohit Vaid

The reinstatement of regular international flight operations is expected to boost the pandemic battered civil aviation industry in India.

On Sunday, scheduled commercial international passenger services to and from India were restarted.

The Centre has allowed over 3,200 flights per week from India during this year’s summer schedule which commenced on Sunday.

Besides, the restart of regular international services brings more options and lower prices for passengers.

Industry experts say that the present juncture might be the opportune moment for India’s airline industry to gain international market share.

At present, foreign carriers ferry more Indians to overseas destinations than the homegrown airlines.

“The resumption of regular international flights after a hiatus of 2 years is set to give a booster shot to the domestic airline companies who have seen a prolonged disruption to their operations,” said Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research.

“While risks of additional Covid waves will remain, the likelihood of the same impacting economic activities including passenger transportation in a severe manner is gradually on a decline, given the high vaccination coverage and the increased immunity.”

Chowdhury pointed out that advance bookings for the upcoming summer season have also seen an encouraging trend driven by an expected revival in the hospitality and tourism industry.

Lately, the domestic air passenger traffic has seen a sequential pickup.

In February 2022, the traffic grew by 19 per cent over January 2022 due to a rapid drop in Omicron cases, although the volumes were still significantly lower than the pre-Covid levels.

“Domestic travel has been increasing rapidly in the past few months,” said Ashish Chhawchharia, Partner & National Head — Restructuring Services at Grant Thornton Bharat.

“As international travel resumes, a huge boost to the travel and tourism industry will be felt across the hospitality, F&B and retail sector. In the near future, fleet size, airports and routes, maintenance, cargo, FTOs and drones are going to expand exponentially, to meet the demand.”

Furthermore, pent-up demand for international wanderlust is expected to keep seats full for airlines.

Moreover, even the fuel used on the international routes is far cheaper than the one consumed for domestic operations.

“‘Go Big’ is the theme for international travel this year. The industry is seeing a strong desire for grand getaways fuelled by pent-up demand and limited international travel options in the last two years,” said Rajnish Kumar, Co-founder & Group CPTO, ixigo.

“We are also seeing a trend of travellers now eager to book long-haul destinations with international borders reopening and relaxation of rules across the globe.”

As per ixigo, significant uptick has been seen in travel search queries for popular international destinations like Australia, Sri Lanka, US & UK.

“Travel search queries from India for Australian cities like Melbourne, Adelaide and Sydney have jumped 15-20 per cent this month,” Kumar said.

In addition to airlines, other segments like airports and the hospitality are expected to reap the benefits out of the reinstatement.

“After missing international summer travel for two consecutive years and the country recording the lowest cases of all time, passengers have shown keen interest in leisure travel over the last couple of months,” a CSMIA (Chhatrapati Shivaji Maharaj International Airport, Mumbai) spokesperson said.

“With international travel soon resuming, we anticipate passenger footfall crossing pre-pandemic numbers with nearly 700 flight movements daily in the summer of 2022.”

India had banned the operation of international flights on March 23, 2020 to contain and control the spread of Covid-19.

Flight restrictions, however, were later eased under the air bubble arrangement with certain countries.

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Business India News

India’s industrial activity expected to pick up


Furthermore, the use-based classification of IIP suggests weakness in both investment and consumption demand…reports Asian Lite News

India’s industrial activity is expected to gather pace in the coming months owing to a gradual pick-up in consumption as well as investment demand.

Notably, the latest Index of Industrial Production (IIP) printed at 138 (index reading) in December 2021, representing a 0.4 per cent on-year growth, down from 1.3 per cent growth in November.

“While there was an improvement in the momentum i.e., sequential or on-month movement of industrial activity in December – likely reflecting some easing of raw material supply disruption – it was not very robust,” Crisil Research said.

“Softness in both consumption and investment demand kept industrial, especially manufacturing, growth subdued.”

Besides, the slowdown in on-year IIP growth to 0.4 per cent in December, from 1.3 per cent in November, reflected weaker manufacturing activity which, at 77.6 per cent, is the largest component of IIP.

“To be sure, the slowdown is also the result of a high base (as IIP had risen in December 2020 over November 2020).”

Segment wise, manufacturing IIP declined 0.1 per cent on-year in December, whereas mining and electricity grew 2.6 per cent and 2.8 per cent, respectively, containing the decline in overall IIP growth.

“The weakness in manufacturing growth was in sync with the Purchasing Manager’s Index, which eased to 55.5 in December from November’s 57.6. That said, strong export performance did some counter-balancing.”

Furthermore, the use-based classification of IIP suggests weakness in both investment and consumption demand.

However, Crisil Research, said: “Industrial growth fell in January due to rising omicron cases. This could also have slowed demand a bit, and caused some logistical disruptions.

“Beyond that, going ahead, industrial activity is expected to gather pace for two reasons. One, raw material shortages are slowly getting addressed, and consumption and investment demand are expected to gradually pick up.”

The second reason it cited was that government is expected to step up Capex, which should give a lift to the manufacturing of infrastructure-related products and services.

“That said, high commodity prices and their impact on manufacturing activity will remain the monitorables in the road ahead.”

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Business

India’s mustard oil industry seeks revival measures

The policy should also promote organic mustard cultivation in India as part of the Atmanirbhar Bharat Mission. The consumption of organic products as part of a healthy, holistic lifestyle in urban areas is on the rise…writes Vivek Puri

We would like to start out by thanking the Government for banning futures trading in mustard on the NCDEX from 20th December 2021 for a period of one year. This is a very timely intervention in a critical situation wherein the prices of mustard and mustard oil have been skyrocketing, making this edible oil unaffordable for middle class consumers.

Against an MSP of Rs. 4600 per quintal, mustard oilseeds were being traded at prices as high as Rs. 8000 per quintal in the open market. The unabated and unbridled increase in mustard oilseed prices throughout the year led to the steep rise in mustard oil prices, and compelled a large section of mustard oil consumers to switch to imported edible oils that were available at lower price-points and cheaper brands of mustard oil which are mostly adulterated). This resulted in mustard oil manufacturing operations becoming uncompetitive.

The ban on futures is expected to curb speculation and check the hoarding mentality of certain big players; such practices are known to cause severe price fluctuations, more so in a market that is already volatile. The decision was also made with a view to cooling mustard prices and, to some extent, this has happened.

The prevailing situation makes it imperative for the Government to formulate a National Mustard Policy an idea that we have been championing for several years now. In particular, farmers, who are key stakeholders, need to be one of the main areas of focus in the proposed policy.

Mustard is a very important crop from a national perspective. India is the world’s fourth largest cultivator of mustard, and the mustard crop accounts for over 28 per cent of India’s oilseeds production. The total area under mustard cultivation is over 25 lakh hectares and mustard production for 2020-21 touched a whopping 9.12 million tonnes in spite of significant pre-harvesting crop losses in Rajasthan caused by hailstorms.

Mustard and mustard oil have been a part of India’s culinary heritage for several millennia and a National Mustard Policy would be an ideal way to nurture, safeguard and promote this legacy. Moreover, since India has age-old capabilities for manufacturing traditional cold-pressed mustard oil, this home-grown industry aligns admirably with the Government’s vision for self-reliance as exemplified by the Atmanirbhar Bharat Abhiyaan. As an extension of this endeavour, the Government should also take proactive measures to protect mustard oil from the onslaught of imported edible oils.

In this context, another important policy measure would be to allow the export of branded mustard oil in bulk. Currently, only small packs are allowed and they must compulsorily be labelled “For External Use Only” for the US and European Union markets. The Government should lobby with the relevant international regulatory authorities to get this inaccurate and misleading labelling requirement removed. The global reputation of mustard oil as a natural, healthy cooking medium has been growing in recent years and the export of Indian mustard oil has the potential to create new opportunities for both farmers and manufacturers. With the advent of a free-trade market, the world has become a global village in which consumer preferences are changing with the times; We, therefore, propose that the Government should facilitate both exports and imports of edible oil. To this end, the Government should also consider providing subsidies to encourage exports.

The proposed National Mustard Policy should also explore the possibilities of significantly expanding the area under cultivation by developing mustard farming in states like Assam and Jharkhand where the weather conditions are suitable for mustard. The mustard crop requires two irrigation cycles during the season, and both the states have adequate water resources. Moreover, the agricultural fields in those states are not used for any winter crops after paddy harvesting, so mustard cultivation can enhance productivity and profitability for the farmers there.

The policy should also promote organic mustard cultivation in India as part of the Atmanirbhar Bharat Mission. The consumption of organic products as part of a healthy, holistic lifestyle in urban areas is on the rise. Organic mustard oil could also have high export potential. India already produces a significant quantity of organic mustard, and with China producing a very limited amount, this could be another area of opportunity.

Yet another key focus area is mustard oilcake (known as Sarson Khal), which often gets ignored even though it is an integral part of the mustard value chain. The oilcake is largely used as part of cattle-feed and also has farming applications as a safe, chemical-free natural fertilizer. The Government should promote research and investments in the development of mustard oilcake. Any value addition achieved by such research will go a long way in supporting dairy farmers and will also benefit consumers as mustard oil prices can be expected to ease as a result.

Understandably, the rollout of such a policy requires infrastructure, supporting systems and networking capabilities. To this end we have, in the past, recommended the constitution of a Mustard Oil Development Board. Examples of the effectiveness of such an institution can be seen in the Malaysian Palm Oil Board, the American Soybean Association and Spain’s International Olive Council. All these organisations have been successful in marketing their countries’ oil to the world; so why should mustard oil be left behind?

As India’s mustard oil industry emerges from the shadow of the pandemic, the time is just right for formulating and implementing a mustard policy. It is the need of the hour and must be prioritised.

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