RBI to set up innovation hub for finance sector

 

The Reserve Bank of India (RBI) is in the process of setting up an innovation hub which will focus on future technology in the financial services space. RBI executive director T Rabi Sankar has stated that, “Innovation Hub is one of the things that we are trying out where we are looking at actually creating ideation, creating ideas to evolve technologies." "We would expect technology firms, financial entities, academic entities, even funding agencies, all of them to interact on this hub and start the entire process from ideation to creation to piloting of solutions," he said. Sankar also said the RBI has released a framework for setting up umbrella entities for operating pan-India retail payments systems. It has invited applications from eligible companies by February 26, 2021.

As per the framework, the companies with a net worth of over Rs 500 crore will be eligible to set up an umbrella entity which among other things will be permitted to set up, manage and operate new payment systems in the retail space comprising ATMs, White Label PoS, Aadhaar-based payments and remittance services. Among other things, the umbrella entity will be permitted to operate clearing and settlement systems for banks and non-banks; identify and manage relevant risks such as settlement, credit, liquidity and operational; and preserve the integrity of the system.

Telemedicine market in India to reach USD 5.5 bn by 2025: EY-IPA study

 

According to an EY-IPA study, the domestic telemedicine market is expected to reach USD 5.5 billion by 2025 and Indian healthcare industry should shift from traditional method of doctor-patient interaction to digitally enabled remote consultations

Evolution of teleconsultation and e-pharmacy will be the new norm and around 15-20 per cent of the healthcare ecosystem is expected to shift to virtual care across triaging, consults, remote monitoring, home health, etc. The healthcare industry, driven by the increased digitisation will require a strong regulatory framework to protect the patient’s data privacy and prescription substitution.

The study stated that the telemedicine market in India will grow at a compound annual growth rate (CAGR) of 31 per cent for the period 2020–25 and reach USD 5.5 billion.

There is a growth in virtual care such as tele–consult, telepathology, teleradiology and e–pharmacy in India due to the current pandemic situation. The teleconsultation and e-pharmacy will account for around 95 per cent of the telemedicine market by 2025 which amounts to USD 5.2 billion

As per the study, India's e-pharmacy market is projected to reach 10-12 per cent of the overall pharmaceutical sales in the next five years driven by strong regulations, increased funding and creation of digital infrastructure, it added.

Indian Pharmaceutical Alliance (IPA) Secretary-General Sudarshan said that with the challenges due to the COVID-19, consumer behaviour and patterns are changing and the new norms of social distancing traditional ways of in-person doctor-patient interaction are being digitally enabled by remote consultations.

EY India Life Sciences - Partner & Leader Sriram Shrinivasan quoted that the current levels of adoption by the patients and doctors along with emerging technologies, India will experience a growth in the digital health ecosystem, however, it will also need a robust regulatory and governance framework that provides the right support for growth

Indian Railways generates more than 8,09,000 man-days of work till 4 September 2020 under Garib Kalyan Rozgar Abhiyaan

 

Indian Railways has generated 8,09,046 man-days of work till 4 September 2020 under Garib Kalyan Rozgar Abhiyaan in 6 States viz. Bihar, Jharkhand, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh.

Shri Piyush Goyal, Minister of Railways and Commerce & Industry is closely monitoring the progress made in these projects and generation of work opportunities for the migrant labours of these states under this scheme. Around 164 Railway infrastructure projects are being executed in these states.

Till 4 September 2020, 12,276 workers have been engaged in this Abhiyaan and the payment of Rs 1,631.80 crores has been released to the contractors for the projects being implemented.

Railway has appointed nodal officers in each district as well as in the States so that a close coordination is established with the State Government.

Railway has identified no. of Railway works which are being executed under this scheme. The works are related to (i) construction and maintenance of approach roads for level crossings, (ii) development & cleaning of silted waterways, trenches and drains along the track, (iii) construction and maintenance of approach road to railway stations, (iv) repair and widening of existing railway embankments / cuttings, (v) plantation of trees at extreme boundary of railway land and (vi) protection works of existing embankments/ cuttings/bridges.

It may be noted that Hon’ble Prime Minister Shri Narendra Modi launched a massive employment -cum- rural public works campaign named Garib Kalyan Rojgar Abhiyaan to empower and provide livelihood opportunities in areas/ villages witnessing large number of returnee migrant workers affected by the devastating COVID-19 on 20th June 2020. The Prime Minister announced that an amount of Rs 50,000 crores would be spent for building durable rural infrastructure under the Garib Kalyan Rojgar Abhiyaan.

This Abhiyaan of 125 days, is being undertaken in mission mode, and involves focused implementation of 25 categories of works/ activities in 116 districts, each with a large concentration of returnee migrant workers in 6 states of Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, Jharkhand and Odisha. Public works is being undertaken during this campaign will have a resource envelope of Rs. 50,000 crores.

The Abhiyaan is a convergent effort between 12 different Ministries/Departments, namely; Rural Development, Panchayati Raj, Road Transport & Highways, Mines, Drinking Water & Sanitation, Environment, Railways, Petroleum & Natural Gas, New & Renewable Energy, Border Roads, Telecom and Agriculture, to expedite implementation of 25 public infrastructure works and works relating to augmentation of livelihood opportunities

India to become a 'Knowledge Economy' in 21st century: PM Modi on NEP 2020

 

The Prime Minister of India, Shri Narendra Modi, addressed the conference of governors on the topic of the National Education Policy (NEP) 2020 on September 7 at 10:30 am. He addressed several key pointers regarding the new education policy approved by the Union Cabinet. He also talked about transforming India into a ‘Knowledge Economy’ during his speech.

He addressed that to fulfil the aspirations of the nation, the education policy and the education arrangement is extremely important. The arrangement of education is the responsibility of the state, central and local bodies of the country.

 

International campuses in India

He said that there are attempts from the government to transform India into a ‘Knowledge Economy’ in the 21st century by providing opportunities to the students. Provisions will also be made to tackle the brain drain of NEP 2020 and to provide the students with the opportunity to experience the best international institutions in their campuses. He believed that everyone wants to see the change in the existing education system, which has made the acceptance of this policy easier.

The Prime Minister also talked about the jobs and careers and certain ways to empower the students.

India's agriculture technology can grow to $24.1 billion in 5 years: Report

 

India’s agriculture technology sector has the potential to grow manifold to $24.1 billion in the next five years, according to a new report. With a turnover of $204 million, India’s agri-tech sector is at under 1% of its market potential today.

A big chunk of the gains will likely be made by companies addressing supply chain and financial services solutions, driven by the availability of affordable high-speed internet and maturing of India’s digital content ecosystem, the EY report on India’s agri-tech potential said. The report has also forecast consolidation in the agri-tech space along with start-ups expanding horizontally to service the end-to-end needs of farmers within the next few years. “Attractive market opportunity, nascency in investment funding and minuscule penetration by incumbent agri-tech players offer an opportunity for established players such as institutional retailers, ecommerce players and food processing companies to create impact at scale,” said Ankur Pahwa, partner and national leader — ecommerce and consumer internet at EY India.

EY estimates that five key categories of agri-tech will control the lion’s share of the sector’s turnover, with the agri-tech market for supplying farm inputs being as big as $1.7 billion by 2025, the market for precision agriculture and farm management growing to $3.4 billion in that time, while the market for quality management and traceability could be worth $3 billion. The market for tech enabled supply chain and output market linkages will be the largest segment, which could be worth $12 billion by 2025, according to EY. The second largest segment in the overall agri-tech market could be for financial services, with a market potential of $4.1 billion in the next five years. Funding in the sector so far is also skewed towards start-ups serving these five sectors, with a bulk of the money being pumped into start-ups building agri supply chains and market linkages.

India test-fires hypersonic technology demonstrator vehicle; joins select group

 India has successfully flight-tested the indigenously-developed hypersonic technology demonstration vehicle (HSTDV), joining a select group of countries having the capability to develop the next-generation hypersonic cruise missiles, officials said. The HSTDV, based on hypersonic propulsion technologies and developed by the Defence Research and Development Organisation (DRDO), will help India develop futuristic space assets like long-range missile systems and aerial platforms, they said. The HSTDV is capable of powering missiles to attain a speed of around Mach 6 or six times the speed of sound, the officials said, adding only a very few countries like the US, Russia and China have such a capability.

Defence Minister Rajnath Singh congratulated the DRDO over the successful test-flight of the HSTDV, calling it a "landmark achievement". "I congratulate DRDO on this landmark achievement towards realising PM's vision of Atmanirbhar Bharat. I spoke to the scientists associated with the project and congratulated them on this great achievement. India is proud of them," he tweeted. A DRDO official said that with the successful test flight of the HSTDV, India has demonstrated capabilities for highly complex technology that will serve as the building block for next-generation hypersonic vehicles in partnership with the domestic defence industry. The defence ministry said the parameters of launch and cruise vehicle, including the scramjet engine, were monitored by multiple tracking radars, electro-optical systems and telemetry stations. "The scramjet engine worked at high dynamic pressure and very high temperature. A ship was also deployed in the Bay of Bengal to monitor the performance during the cruise phase of hypersonic vehicle," the ministry said. With the successful test, it said many critical technologies such as aerodynamic configuration for hypersonic manoeuvres, use of scramjet propulsion for ignition and sustained combustion at hypersonic were proven and validated.

It said the hypersonic cruise vehicle was launched using a proven rocket motor, which took it to an altitude of 30 kilometres where the aerodynamic heat shields were separated. "The cruise vehicle separated from the launch vehicle and the air intake opened as planned. The hypersonic combustion sustained, and the cruise vehicle continued on its desired flight path at a velocity of six times the speed of sound," the ministry said. It said the critical events like fuel injection and auto ignition of scramjet demonstrated technological maturity and that the scramjet engine performed in a "textbook manner".

Government approves proposal to export made in India mobile phones worth $100 billion

 

The government has reportedly cleared a USD 100 billion proposal that allows manufacturers to export smartphones made in India to other parts of the world. Smartphone brands such as Samsung, Lava, Karbonn and contract manufactures Foxconn, Wistron, Pegatron are cleared to export smartphones made in India.

A senior government official quoted that the empowered committee which includes Niti Aayog CEO, secretaries of economic affairs, expenditure, revenue, the Ministry of Electronics and Information Technology (MeitY), Department for Promotion of Industry and Internal Trade (DPIIT) and Directorate General of Foreign Trade (DGFT) has approved applications estimated to export around USD 100 billion worth mobile phones under the production linked incentive scheme (PLI) and all the applications will be placed before the cabinet probably this week.

The applicants include seven Indian and five overseas manufacturing companies, along with six applicants from the components manufacturing scheme.

According to the applications, Foxconn, Wistron, Pegatron, and Samsung have submitted production estimates worth USD 50 billion each in the next five years

The government had launched the PLI scheme to boost the manufacturing of smartphones in India and several brands and suppliers showed interest by applying for the scheme and gain benefits worth Rs 41,000 crore.

Samsung is looking to manufacture mobile phones worth Rs 3.7 lakh crore in India over the next five years. Out of this, smartphones worth USD 30 billion, or Rs 2.2 lakh crore will be produced under the PLI scheme.

Good monsoons, record sowing key positives for Agri sector: CARE Ratings

 

The credit ratings agency CARE Ratings in their report said that the favorable monsoon, record kharif crop sowing and high reservoir levels are positive for the agriculture sector that contributes nearly 15% of India’s GDP.

The above factors could push up rural demand at the onset of the festive quarter, can prove to be silver lining for economic growth. The economy is banking on the farm sector to grow by 3.5 to 4 percent across all quarters to prop up GDP growth

Price realisation would be important, to translate into spending power of farmers and all indications are that kharif output would be higher than last year for almost all major crops and will be a critical factor to determine how prices would shape up during harvest time.

Companies associated with consumer goods, appliances and durables and automobiles are hoping on rural growth backed by higher farm incomes, good monsoons and government stimulus.

CARE also quoted that nearly 88 percent of the country received excess to normal rainfalls while 12 percent have had deficient rainfalls so far.

Indian companies raise record $31 billion equity capital in shrinking economy

 Indian companies have raised a record $31 billion in equity capital in 2020, as banks strengthen their balance sheets to prepare for future economic uncertainty and corporates tap into the elevated global liquidity levels. The record raising comes despite India’s economy contracting 23.9% in the June-quarter, year on year, which puts it on track for the first annual contraction since 1980.

Banks have been the most active issuers, raising $13.68 billion, followed by the energy and power sector with $7.05 billion, and consumer products with $3.41 billion. Reliance Industries’ $7-billion raising in June was the country’s largest, as the company turned net debt-free and is now looking to expand its consumer business by acquiring Future Group’s retail arm.

Real estate companies were identified by corporate advisors as the most likely candidates to tap the markets further in 2020 as property demand is expected to return after the disruption caused by the coronavirus crisis.

Surging cash levels – helped by $15 trillion of stimulus made available for economies to withstand the fallout of the pandemic was primarily responsible for the raising rush, advisors said.

“We expect issuance to expand further to growth capital in the coming weeks and months, and the pipeline is developing across sectors,” said Citigroup’s India head of banking and capital markets Ravi Kapoor.

EY India partner Sandip Khetan said the banks’ raisings helped created “a cushion to the potential losses on account of credit losses” that could occur in the future.

Foreign appetite to buy Indian equities has risen sharply, with investors outside India buying $10.3 billion of new shares in the three months to August, the Refinitiv data showed.

“The interest from foreign investors has been very strong and that reflects the fact that the quality of issuers that have come to market have been from the Top 100 companies.” said Morgan Stanley’s executive director Samarth Jagnani.

Japan to subsidise manufacturers if they shift to India from China: Report

 A Nikkei Asian Review report has stated that Japanese manufacturers will be eligible for government subsidies if they shift production out of China to India or Bangladesh. The subsidy aims to diversifying Japan's supply chains. Manufacturers can receive subsidies for feasibility studies and pilot programs. The total amount granted is expected to run into the tens of millions of dollars.

The subsidy aims to reduce Japan's reliance on a handful of links in its supply chains, particularly China, and ensure a steady flow of such products as medical supplies and electrical components in an emergency, said the Nikkei report.

Prime Minister Narendra Modi, while to speaking to an Indo-American business summit, on Thursday called for a coordinated global effort to get back growth in the coronavirus pandemic.

"This pandemic has also shown the world that the decision to base global supply chains should not only be based on cost but also on trust. Along with affordability of geography, companies are now also looking at reliability and policy stability. India is the location that has all these qualities. As a result, India is also becoming one of the leading destinations of foreign investment," Modi said.

The Nikkei report said Japan’s first round of subsidies announced in July granted more than 10 billion yen to 30 companies relocating manufacturing to Southeast Asia, such as Hoya, which is moving production of electronic components to Vietnam and Laos. Another 57 are receiving support for shifting production facilities to Japan.