India to become third-largest consumer economy by 2025: BCG

Mumbai: Even as the world economy struggles and many developed countries are trying to alter their consumption through austerity drive, India could end up as the third largest consumer economy by 2025 according to a report by the Boston Consulting Group (BCG).
Consumption in India is set to triple to $4 trillion by 2025 as rising affluence drives changes in consumer behaviors and spending patterns that have big implications for companies, the BCG report --Center for Customer Insight (CCI), The New Indian: The Many Facets of a Changing Consumer—said. “Nominal year-over-year expenditure growth of 12% is more than double the anticipated global rate of 5% and will make India the third-largest consumer market by 2025,” it added.
“India’s consumer market is poised for fundamental change,” said Nimisha Jain, a BCG partner and report coauthor. “As the consumer market continues to grow and evolve, companies will need to shed conventional wisdom, try multiple business models simultaneously, and be prepared for rapid change internally to adapt to changing consumer needs and behaviors.”
“A set of emerging social trends could reshape consumption patterns significantly,” said Abheek Singhi, a BCG senior partner and report coauthor. “These include more—and better educated—women taking their rightful place in society, greater pride in being Indian, and increasing time compression, each of which will drive exponential growth in various categories differently.”
According to the report in addition, the internet is an increasingly pervasive factor in India’s commerce, and its influence will only expand. Online spending is taking off: in the past three years, the number of online buyers has increased sevenfold to 80 million to 90 million. Digital’s influence on broader consumer spending is significant and growing rapidly. Digitally influenced spending is currently about $45 billion to $50 billion a year, and that figure is projected to increase more than tenfold to $500 billion to $550 billion—and to account for 30% to 35% of all retail sales—by 2025. As a result, omnichannel interaction is more and more important, but its significance varies by category. Consumers’ purchase pathways also are increasingly complicated.

1.17 lakh more affordable houses for urban poor sanctioned under PMAY(Urban)

Investment involved-Rs.5,773 cr; Central assistance approved-Rs.1,816 cr
Madhya Pradesh gets 27,475 houses; Bihar-25,221, Jharkhand-20,099, Odisha-2,115
Bhopal gets 4,154 houses, Gwalior-3,120, Purnea-3,378 and Ranchi-2,668
MP with over 2 lakh sanctioned houses closely behind Tamil Nadu in implementing housing mission
Total investment in affordable housing approved close to Rs.one lakh cr mark
New Delhi: Ministry of Housing and Urban Poverty Alleviation today approved construction of 1,17,814 affordable houses for the benefit of urban poor in six States at a total cost of Rs.5,773 cr for which central assistance of Rs.1,816 cr has been approved, under the Prime Minister’s Awas Yojana (Urban).
Noting that affordable housing under PMAY(Urban) is gaining momentum, Minister of HUPA Shri M.Venkaiah Naidu has asked the Ministry officials to ensure that construction of sanctioned is taken up and completed quickly by the concerned City and State Governments.
Madhya Pradesh has been sanctioned a total of 27,475 new houses for 43 cities and towns at a total cost of Rs.1,713 cr for which central assistance of Rs.412 cr has been approved. These include 20,971 houses under Beneficiary Led Construction (BLC) component of PMAY(Urban) and 6,504 houses under Affordable Housing in Partnership (AHP) component.
Under BLC, beneficiaries are assisted to build own houses on the land available with them or take up improvement works for increasing living space and other amenities. Under AHP, State Government provides the land to house urban poor. Under both these components, central assistance of Rs.1.50 lakh is provided for each beneficiary.
With today’s sanctions, Madhya Pradesh has so far been sanctioned 2,09,036 houses and is closely behind Tamil Nadu which is leading in implementation of PMAY(Urban) with the maximum of 2,27,700 houses sanctioned.
In Madhya Pradesh, Bhopal has been sanctioned 4,154 houses, Gwalior-3,120, Dhar-1,800, Khargone-2,012, Burhanpur-1,535, Gadarwara-1,366, Khandwa-1,162, Seoni-902, Dhanpuri-739, Balaghat-716, Biaora-693, Shahdora-691 and Dindori-685.
Bihar has been sanctioned 25,221 new houses for urban poor in 31 cities with a total investment of Rs.1,208 cr and with central assistance of Rs.378 cr under BLC component. With this, Bihar has so far been sanctioned a total of 88,254 affordable houses under PMAY(Urban).
Under today’s sanctions, Purnea has got 3,378 houses followed by Bihar Shariff-2,625, Kishanganj-2,490, Gaya-2,429, Madhubani-1,798, Sheohar-1,641, Jami-1,023, Benipur-1,016, Gogri Jamalpur-986, Raxaul-842 and warsaliganj-674.
Jharkhand has been sanctioned 20,099 new houses under Beneficiary Led Construction component of PMAY(Urban) in 36 cities with a total cost of Rs.728 cr and central assistance of Rs.306 cr. With this, total number of affordable houses sanctioned for the State under PMAY(Urban) has increased to 64,555 so far.
Ranchi has been sanctioned 2,668 houses followed by Deoghar-2,192, Dhanbad-1,905, Jhumi Taliaya-1,393, Lohardaga-1,099, Madhupur-1,292, Chas-1,249, Medininagar-867, Gumla-630 and Chaibasa-644.
Odisha has got 2,115 new houses sanctioned under BLC component of PMAY(Urban) for 8 cities with a total project cost of Rs.64.00 cr for which central assistance of Rs.32.00 cr has been approved. With this, total number of Affordable houses sanctioned for Odisha so far has increased to 48,845.
In today’s sanctions, Nabarangpur has got 230 houses followed by Purusottampur-226, karanjia-200, Ranpur-196, Chikite-180, Anandpur-152, Udala-150, Rambha-110 and Radhakol-107.
Karnataka has been sanctioned 31,424 houses and Kerala-11,480 houses for urban poor under PMAY (Urban).
With today’s approvals total number of houses being taken up for construction for the benefit of urban poor under PMAY(Urban) has gone up to 17,60,507 with total project cost of Rs.96,018 cr for which central assistance of Rs.27,714 cr has been approved.

Vodafone's India operations to merge with Idea Cellular in two years

Mumbai: Vodafone India will merge with Idea Cellular within two years, making the merged entity the largest telecom operator in India with 400 million customer base and 35 per cent market share. Vodafone will own 45.1 per cent of the merged entity after a consideration of US$ 592.15 million is paid in cash for transferring about 4.9 per cent to promoters of Idea or its affiliates. The companies expect cost and capex synergies to yield US$ 10 billion in present value terms post integration costs and payments towards spectrum.

Future Group to expand affordable fashion retail format

Kolkata: Future Group plans to open 80 new stores for its affordable fashion format FBB this fiscal to grow the store count which at present is 300, said group CEO Kishore Biyani.
Addressing a press conference here on Saturday, Biyani said the retailer plans to sell 23 crore units of garments by next year March and expects it to grow to 80 crore units by 2021. "Next fiscal, we are targeting Rs 10,000 crore sales from fashion and we expect much of it will be driven from Kolkata," he said.
Biyani said he expects prices at FBB will plunge by 3-5% every year as the retailer gains scale in operations and backend. He said around 40% of the group's revenue is driven by fashion.
Future Group launched its largest FBB store in Kolkata. The group is on an expansion spree in Kolkata and soon plans to set up a Central store over 1.5 lakh square feet in Rajarhat. Future Supply Chain Solutions has also just set up an integrated apparels and general merchandise distribution centre at Burdwan, near Kolkata. This will serve all the Big Bazaar and FBB stores located in West Bengal, Orissa, Bihar and North Eastern States. The facility is spread over 2.6 lakh square feet.
Biyani said the new distribution center at Burdwan will enable the group to reduce complexity, increase productivity and offer better services to customers in the Eastern region. "Our aim has always been to come up with better processes and technology that enables us to operate seamlessly," he said.

Number of e-filed Income Tax Returns in Financial Year 2016-17 (till 28.02.2017) was 4.21 Cr

Number of e-filed Income Tax Returns in Financial Year 2016-17 (till 28.02.2017) was 4.21 Cr: The total amount of refund issued in the current fiscal (including refund arising out of rectification, appeal effect etc.) is Rs. 1,48,459 crore (till 28.02.2017)
The number of e-filed Income Tax Returns in Financial Year 2016-17(till 28.02.2017) was 4.21 Cr. which represented an increase of twenty-one percent over the number filed during the corresponding period of last financial year.
The number of e-returns processed in Financial Year 2016-17 (till 28.02.2017) was 4.30 Cr.(this included the returns filed during Financial Year 2016-17 as well as backlog for earlier years).
The total amount of refund issued in the current fiscal (including refund arising out of rectification, appeal effect etc.) is Rs. 1,48,459 crore (till 28.02.2017).
The Government accords high priority to expeditious issue of refunds, particularly to small taxpayers. During Financial Year 2016-17, as on 10.02.2017, 98% of the refunds of less than Rs. 50,000/- have been issued and only 2% remain to be issued. Majority of these cases relate to recently filed tax returns or where the taxpayers’ response to the Department is awaited.
Further, to ensure expeditious disposal of backlog of refunds upto Rs. 5,000/- in non scrutiny cases pertaining to Assessment Year’s 2013-14, 2014-15 and 2015-16, instructions have been issued to field units to issue refunds in these cases without adjustment against the outstanding demand.
The law provides that income-tax returns are to be processed within a period of one year from the end of the financial year in which the return is made. Efforts have been made to shorten the timeframe over the years through greater thrust on automation, smoothening the process for e-filing, and proactive monitoring. During the current fiscal, 90% of the refunds have been issued within 60 days and 67% within 30 days of filing of return.
This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Engg exports may touch US$ 60 billion on US demand

Chennai: Union Minister for commerce and industry Nirmala Sitharaman on Thursday said India's engineering exports are likely to reach $60+ billion in fiscal 2016-17, on the back of revival of demand in the USA and for select products like iron.
"Just between April-January, our engineering exports have touched $50.87 billion, exceeding the total shipments of $49 billion in 2015-16. Only for the month of January, we've seen aggregate exports of $5.29 billion; that's a 12% increase compared to the same period last year, said Sitharaman on the sidelines of the sixth edition of International Engineering Sourcing Show (IESS) held in Chennai on Thursday.
There was enormous potential for India and Russia to enhance bilateral trade, which is presently at $6.62 billion, said the Minister, adding that she's had fruitful discussions with Denis Manturov, minister of industry and trade of the Russian Federation for leading a 120 member delegation.
"We were particularly interested in the North South Transport Corridor (INSTC) as it will cut time and costs for transporting goods between both countries, said the Minister. The INSTC aims at increasing trade by creating a land, air and ship route between India, Russia, Iran, Europe and Central Asia — touching cities like Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan, Bandar Anzali, enroute.
The Minister said they were also looking at other measures, including the proposed FTA between India and the Eurasian Economic Union, which includes Russia. "We need to finale the revised version of the Bilateral Investment Treaty. We've invited my counterparts to be a partner country at the India International Jewellery Show 2017 this July in Mumbai and the Advantage Healthcare India this October," said the Minister.
The department of commerce is keenly supporting technology upgrades for engineering manufacturers for boosting exports in line with the objectives of EEPC. "We are looking at R&D Labs and identified industrial clusters, so that our products are world class," said the Minister.
The International Engineering Sourcing Show held in Chennai saw 400 exhibitors from India and abroad.

Maharashtra to grow at 9.4% in 2016-17: Economic Survey

Mumbai: Achhe din for the BJP-led government in Maharashtra are here. According to the Economic Survey for 2016-17 presented in the state legislature, the gross state domestic product (GSDP) for 2016-17 is expected to grow by 9.4 per cent compared to 8.5 per cent in 2015-16.
The surge in growth is largely due to a 12.5 per cent growth in agriculture, 10.2 per cent in electricity gas, water supply and other utility services and 10.8 per cent in services.
The state economy will grow faster than the Indian economy, which is expected to grow by 7.1 per cent in 2016-17.
State Finance Minister Sudhir Mungantiwar said he hoped Maharashtra would achieve double-digit growth in the coming years and it would continue to retain its pre-eminent position in the national economy due to skillful fusion of technology, social structure, infrastructure backed by natural and human resources along with an organised method of production.
However, the rise in debt stock continues to be a matter of concern as it is estimated to be Rs 3.56 lakh crore in 2016-17 against Rs 3.20 lakh crore a year earlier. This is 15.7 per cent of the GSDP, within the limit of 22.1 per cent laid down by the 14th Finance Commission. The state’s interest payments will be Rs 28,220 crore against Rs 26,217 crore.
The state government’s revenue expenditure, especially on wages, pension and interest, is estimated at Rs 91,924 crore in 2016-17 against Rs 90,092 crore a year earlier.
On the other hand, capital expenditure is set to grow by 17.1 per cent to Rs 46,309 crore against Rs 39,714 crore in 2015-16.
Notwithstanding the Centre’s decision to withdraw currency notes of Rs 500 and Rs 1,000 on November 8, revenue receipts during April-December 2016 increased by 11.4 per cent to Rs 1.40 lakh crore.
The per capita income has grown by 11.4 per cent to Rs 1,46,399 in 2015-16 against Rs 1,32,341 in 2014-15. Maharashtra is second only to Karnataka, whose per capita income stands at Rs 1,48,485.
The agriculture and allied sectors are expected to grow at 12.5 per cent in 2016-17 against a decline of 4.5 per cent in 2015-16. The growth in agriculture alone is estimated at 19.3 per cent against a decline of 10.3 per cent in the previous year.
During the kharif season of 2016-17 the area under cereals is expected to grow by three per cent, pulses by 28 per cent and oilseeds by six per cent while the area under sugarcane will fall by 36 per cent and cotton by 10 per cent. However, the production of cereals is likely to increase by 80 per cent, pulses by 187 per cent, oilseeds by 142 per cent and cotton by 83 per cent while the production of sugarcane will fall by 28 per cent.
The area under rabi crops will be five per cent less than the previous year. The area under cereals will decrease by 16 per cent and oilseeds by 24 per cent while the area under pulses will rise by 22 per cent.
Ironically, the Economic Survey is silent on farmer suicides, which are continuing unabated.
The Economic Survey has not provided the actual area irrigated in 2016-17 citing revision in the process of collection of data. Under the state’s flagship Jalyukta Shivar Abhiyan (Water Conservation Project), 4,374 of 6,202 villages have been made water neutral and 11,82,230 thousand cubic meters of water storage was created in 2015-16.
Industrial Investments
According to the Economic Survey, the state continues to be the favoured destination by attracting 19,437 industrial proposals worth Rs 11.37 lakh crore between August 1991 and November 2016. Of these, 8,664 projects (44.6 per cent ) with an investment of Rs 2.69 lakh crore have been commissioned while 2,107 projects worth Rs 87,701 crore are under execution. The state’s share in industrial proposals nationwide was 17.9 per cent and in investment 10 per cent.
The state has approved 488 mega projects with an investment of Rs 3.79 lakh crore till December 2016. During the Make In India week in February 2016, the state signed 3,018 MoUs with a proposed investment of Rs 8.04 lakh crore. However, the Economic Survey has not disclosed the present status of those MoUs.
Social Sector Status
According to the Maharashtra Human Development Report (MHDR) 2012, the Human Development Index (HDI) of the state is 0.752. Mumbai comprising Mumbai city and suburban districts taken together has the highest HDI of 0.841 whereas the tribal dominated Nandurbar in north Maharashtra has the lowest HDI of 0.604. The literacy rate is 82.3 per cent and the literacy rate for Scheduled Castes is 79.7 per cent and that for Scheduled Tribes 65.7 per cent. Mungantiwar said that the government proposes to increase the literacy rate especially of the 10th passed out in the coming years.

'Made in India' steel to get preference in infrastructure projects: Steel secretary Aruna Sharma

New Delhi: The Ministry of Steel is taking a three-pronged approach to support the domestic industry, which has faced low demand and the influx of cheap imports. It is also trying to lower input costs, steel secretary Aruna Sharma told ET in an interview. Efforts are under way to mandate the use of 'Made in India' steel in government tenders to boost consumption. Edited excerpts:
Indian steel companies have been affected by an influx of imports. Will the government continue to protect them?
We are not against imports but we have to protect Indian steel against dumping. We will also not take any measure that is not WTO-compliant. Since August 2016, anti-dumping measures have been initiated and now 124 items are covered under it.
What steps are being taken to lower input costs for steel companies?
We are trying to improve the logistics network for movement of both raw material and products. For instance, the cost of transporting fines is the same as finished products – Rs 400. One solution is transporting it through slurry pipelines. Now, the railways have agreed to give right of way along railway tracks. We have got a map from pellet makers as to where they want to tap the fines both on the east and west coasts. NMDC will construct the slurry pipelines, which will be underground. Transport costs will thus come down to Rs 50 per tonne. Railways are joining hands in this since it is part of their business and they will also provide protection.
What about key inputs like iron ore and coking coal?
We are discussing reclassification of iron ore, which is under freight class 165 and shifting it to 145, the same as coal or 145A, which attracts a lower rate. We have also urged for reduction of the 2.5% customs duty on coking coal. Also, the coal ministry will invest in washeries to reduce the ash content of local coking coal from 17-18% to an average of 13%. Consequently, imports will reduce by 30%... Also, the pricing mechanism of natural resources like iron ore/coal/gas is being looked into by the Niti Aayog. PSUs in these sectors should be profit-making, not profiteering.
Energy costs, especially power, remain a critical issue.
For this, the power ministry is considering whether a combined bunch of smaller user industries can be allowed to take up 26% stake in a power venture to get the tag of a captive user. Alternative energy sources like liquefied natural gas are also being explored. Duty on LNG was cut down by half in the budget to 2.5%. The petroleum ministry is working on long-term contracts to ensure assured supplies. Pellet makers have already assured us that if gas is available, their entire production can shift to gas, which is cleaner and greener.
The National Steel Policy 2017 is looking at 300 million tonnes of capacity by 2025, but consumption remains low. What steps are being taken to boost it?
Our consumption is 60 kg per capita, while China is at 489 kg per person and the global average is 208 kg. We have a long way to go and are taking serious steps towards it. We are in the final stages of amending the General Financial Rules (GFR), which decide all government tenders. We are bringing the concept of lifecycle cost in GFR. So, if the desired quality is available, ‘Made in India’ or locally produced steel will get preference for big-ticket infrastructure projects and for instance, bridges and drinking water projects, etc. Builders will be encouraged to use steel, which is earthquake resistant.
Will you coordinate your efforts with other ministries, too?
Yes. The commerce ministry is coming up with a generic policy on this. The steel ministry is also talking to other ministries, which are big spenders on infrastructure, about the advantages of steel usage. While cost-effectiveness will remain the key, the focus will be on lower lifecycle cost of steel while evaluating projects. It took seven years for our per capita steel use to cross from 50 to 60 kg. However, we want to go from 60 to 70 kg per person in three years. If domestic consumption goes up, then with lower input cost, protection against dumping and market enhancement, our steel industry should be fortified against global upheavals.

Google pushes HTTPS for web security

Seoul: A HTTPS-based website is a safer way to protect users from possible security attacks, the security director at Google has said, emphasising that major South Korean search engines do not support this system.
"Top websites in (South) Korea that don't support HTTPS are Naver and Daum. It's not just a problem for (South) Korea but a challenge for the world and the developers," said Parisa Tabriz.
Tabriz heads the team who protects Google Chrome and its billions of users from criminal hackers, Yonhap news agency reported.
Google began adding security warnings for websites that do not use strong encryptions beginning in 2017, putting a clear "Not secure" warning next to online websites that use unencrypted HTTP connections rather than encrypted HTTPS connections.
Tabriz said HTTP websites, which account for nearly half of the world's websites, are vulnerable to attacks that Google calls in security terms, "man in the middle."
"Encryption will give the security we need. HTTPS does not solve all security problems, but it provides a foundation for this," she said.
As to some complaints that Google's HTTPS policy may be expensive and time-consuming, the security expert said switching to HTTPS is not easy but necessary.
"It is just a misconception that there is cost. It was true 10 years ago, but cost is no longer true for today," the Iranian-American hacker who protects Google said.
"Without the HTTPS, there is no privacy. We also published a transparency report," she said, adding that HTTPS websites have steadily increased during the past one year with Google's effort.
As for general security, she advised Internet uses not to reuse or use the same password for different websites since hackers know this, and they will attack the weakest website to obtain personal data.
"Don't login on shared computers and verify your account security setting," she added.

Insurance penetration in India likely to cross 4% this year: ASSOCHAM

New Delhi: Government's policy of insuring the uninsured has gradually pushed insurance penetration in the country and proliferation of insurance schemes are expected to catapult this key ratio beyond 4% mark by the end of this year, reveals the ASSOCHAM latest paper.
Despite the gentle rise in insurance penetration which is percentage of insurance premium with reference to the Gross Domestic Product (GDP), it is still far below the global average, according to paper titled 'Insurance penetration in India,' by the Associated Chamber of Commerce and Industry of India (ASSOCHAM).
The insurance penetration has started its northward journey is evident from the fact that it has increased from 3.3% in 2014 to 3.44% in 2015 on the back of various insurance schemes launched by the government, adds the paper.
As part of social security initiative, the government has launched low premium insurance schemes both life and non-life in 2015. Last year, it introduced crop insurance.
With objective to provide insurance cover to all, the Government launched Pradhan Mantri Suraksha Bima Yojna (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) in 2015, noted the study.
PMSBY offers a renewable one-year accidental death or disability cover of Rs 2 lakh for partial/permanent disability to all savings bank account holders in the age group of 18-70 years for a premium of Rs 12 per annum per subscriber. The scheme is managed by general insurance firms, adds the chamber.
PMJJBY, on the other hand, offers a renewable one year life cover of Rs 2 lakh to all savings bank account holders in the age group of 18-50 years, covering death due to any reason, for a premium of Rs 330 per annum per subscriber.
Besides, Pradhan Mantri Fasal Bima Yojana (PMFBY) launched last year to provide financial support to farmers suffering crop loss or damage arising out of unforeseen events will also add to insurance penetration.
PMFBY has been approved for implementation in all States and Union Territories from Kharif 2016 season in place of National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
"PMFBY is a significant improvement over the earlier schemes on several counts and comprehensive risk coverage from pre-sowing to post-harvest losses are some of the salient points. A budget provision of Rs 5501.15 crore has been made for the scheme for the current crop season," ASSOCHAM President Sandeep Jajodia said.
Rashtriya Swasthya Bima Yojana (RSBY) is a government-run health insurance scheme that provides for cashless insurance for hospitalisation in public as well as private hospitals. The scheme is force since April 1, 2008 and has been implemented in 25 states.
The number of lives covered under Health Insurance policies during 2015-16 was 36 crore which is approximately 30 per cent of India's total population. The number has seen an increase every subsequent year as 28.80 crore people had the policy in the previous fiscal.
The measure of insurance penetration and insurance density calculated as the ratio of premium to population or per capita premium reflects the level of development of insurance sector in a country, said Sandeep said.