Mr. Navneet Munot
MD and CEO, HDFC AMC Ltd
In conversation with the Bombay Chamber, Navneet Munot, MD & CEO of HDFC Asset Management Company, shares insights into the economic landscape of India for 2024 amidst global dynamics.
What is your outlook on the Indian economy in 2024, considering global dynamics? What key factors do you think will drive or hinder growth?
Over the past couple of years, India has been far more resilient compared to other economies. The macro-economic stability – growth, inflation, external sector, political – along with long term structural factors like favourable demography, financialisation of savings, shift in global supply chain, policy environment, rising services exports makes India primed for sustained growth in years to come. Risk to this outlook include any spikes in commodity prices due to geopolitical tensions, leading to inflation momentum reacceleration.
How do you assess the current business environment in India and what factors do you anticipate influencing investment decisions in 2024? Any specific sectors of interest or concern?
From a macro-economic standpoint, India is one of the few economies which looks well poised in the years to come owing to various structural tailwinds. With good growth potential ahead in India’s Amrtikaal, opportunities for alpha generation exist across the entire equity market spectrum, with bottom-up stock selection holding the key. In a way, India is truly a stock-pickers paradise due to the plethora of options it presents.
How do you see government policies shaping the business landscape in 2024? Are there particular policy measures crucial for fostering a favourable environment for businesses?
Potent combination of focus on manufacturing, infrastructure development (physical, social, digital), ease of doing business and simplification of regulation could pave the path for India to outshine peers in the next few years. More importantly, the emphasis on inclusive and sustainable growth could make India’s growth story unique compared to the likes of China and other Emerging Markets (EMs).
The Central Board of Direct Taxes (CBDT) has entered into a record 125 Advance Pricing Agreements (APAs) in FY 2023-24 with Indian taxpayers. This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). This marks the highest ever APA signings in any financial year since the launch of the APA programme. The number of APAs signed in FY 2023-24 also represents a 31% increase compared to the 95 APAs signed during the preceding financial year. With this, the total number of APAs since inception of the APA programme has gone up to 641, comprising 506 UAPAs and 135 BAPAs.
During FY 2023-24 CBDT also signed the maximum number of BAPAs in any financial year till date. The BAPAs were signed as a consequence of entering into Mutual Agreements with India’s treaty partners namely Australia, Canada, Denmark, Japan, Singapore, the UK and the US.
The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for a maximum of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, tax certainty is provided for nine years. The signing of bilateral APAs additionally provides the taxpayers with protection from any anticipated or actual double taxation.
The APA programme has contributed significantly to the Government of India’s mission of promoting ease of doing business, especially for Multi National Enterprises () which have a large number of cross-border transactions within their group entities.
Centre for Trade and Investment Law (CTIL), Indian Institute of Foreign Trade established by Ministry of Commerce and Industry, Government of India, in collaboration with Centre for Justice, Law and Society (CJLS) at Jindal Global Law School (JGLS), recently organised the International Symposium on Health Governance in a Political Landscape: Interplay of Health Law, Society and Political Economy.
Dr. V.K. Paul, Member, NITI Aayog delivered the inaugural address highlighting the importance of access to medicine and right to health and shared his experiences for policy implementation during the COVID-19 pandemic. Dr. Paul emphasised the need for inspiring leadership in policymaking, particularly health policy, by citing the example of India’s leadership as a vaccine supplier to the developing countries during the COVID-19 pandemic. Dr. Paul also discussed how the deficiencies of India’s Epidemic Diseases Act, 1897 were addressed by invoking the Disaster Management Act, 2005 for implementing the health-related emergency measures during the COVID-19 pandemic. Prof. C. Raj Kumar, Vice Chancellor, O.P. Jindal Global University & Dean, JGLS delivered opening remarks along with the welcome address by Prof. James J. Nedumpara, Head & Professor, CTIL and Prof. Dipika Jain, Professor, JGLS & Director, CJLS respectively.
Hon’ble Mr. Justice Ravindra Bhat, Former Judge, Supreme Court of India chaired the plenary session 1 on the theme “Economic Policies, TRIPS and Healthcare: Building Bridges for Access”. Mr. Justice Bhat highlighted the importance of public interest as a ground for granting injunction in pharmaceutical patent disputes. Mr. Justice Bhat focussed on access to health and its intersection with the Intellectual property Right laws in broader parlance and interlinkages between health, trade, and access to medicines which balance economic and public rights. The panelists emphasised the need for innovative policy solutions and greater collaboration between governments, pharmaceutical companies, and international organizations to promote affordable access to medicines for all.
The second plenary session on the theme “Ink & Insight: Living the Scholarly Life Through Thought, Research & Publication” focused on the role of research and publication in shaping public health policy, particularly evidence-based policymaking. The panelists highlighted the influence of economic interests and conflicts of interest in health policy formulation and stressed on the importance of transparency in policymaking.
Dr. Sharmila Mary Joseph, Principal Secretary of Kerala’s Local Self-Government and Women & Child Development Department, delivered a special address that emphasised local bodies’ crucial role in addressing healthcare challenges and utilizing development funds effectively. Subsequently, thematic sessions explored diverse aspects of health governance, including intellectual property rights (IPRs), medicine accessibility, research ethics, and technology’s impact on health outcomes.
The first day of symposium concluded with a special address by Prof. Chantal Thomas, Vice Dean and Radice Family Professor of Law, Cornell Law School, United States of America highlighted India’s significant role in healthcare, emphasising its moral leadership during Covid-19 and in bringing out the Doha 2001 declaration. She called for an analytical shift in legal and political discourse, advocating for dynamic trade models that consider gender and promoting participatory politics in international trade law.
The thematic sessions on Day 2 featured esteemed speakers and participants delving into critical health governance issues, particularly in TWAIL and Health Equity, abortion rights, reproductive justice, and TRIPS and regional integration in health. Both days’ thematic sessions saw discussions among eminent academicians such as Prof. (Dr.) B.S. Chimni, Distinguished Professor of International Law, JGU; Professor (Dr.) S. G. Sreejith, Professor & Executive Dean, Jindal Global Law School & Executive Director, Centre for International Legal Studies, JGU; Prof. James J. Nedumpara, Head & Professor, CTIL; Dr. Sylvia Karpagam, Public Health Doctor and Researcher, Bengaluru; Prof. Leila Choukroune, Professor of International Economic Law & Director of the University of Portsmouth Thematic Initiative in Democratic Citizenship; Prof. Shailja Singh, Associate Professor, CTIL; Prof. Shiny Pradeep, Assistant Professor, CTIL; and the participants.
The symposium ended with a special address by Dr. Anup Wadhawan, former Commerce Secretary, Government of India and a distinguished lecture by Prof. Lorand Bartels on “International Economic Law and Right to Health”. Dr. Anup Wadhawan emphasised the complexities of ensuring access to medicines, urging conscious policy choices like reforming the IPR regime for public health goals. Prof. Bartels emphasized that health is reiterated a fundamental human right within international law. He also cited the Chilean alcohol tax case to underscore challenges in policy implementation. Prof. Ashita Dawer, Associate Professor of Economics, Jindal Global Law School, JGU delivered the concluding remarks. This session was moderated by Ms. Ronjini Ray, Consultant (Legal) Assistant Professor, CTIL.
The Symposium offered scholars and early-stage academicians, both domestic and international, a platform to present their research articles to expert commentators. Following feedback from the commentators, scholars will refine their articles for publication in a Special Issue of Jindal Global Law Review. Prof. James J. Nedumpara, Head & Professor, CTIL delivered the concluding observations of the Symposium.
The Govt of Maharashtra has issued two notifications for paid holidays on days of polling in various constituencies.
A. Notification dated 3.4.24 declaring public holiday under Negotiable Instruments Act
B. Notification dated 22.3. 24 declaring paid holidays under Section 135 (b) of the Representation of People’s Act 1951.
Copy of Notification attached.
Mr. Tejas Desai
Partner at Ernst & Young
India continues to shine as a bright spot in the global economy, poised for steady growth driven by a myriad of factors, believes Tejas Desai, Partner, Private Equity & Financial Services – Tax & Regulatory services at Ernst & Young LLP, as he weighs in on the economic prospects of India in 2024 against the backdrop of global dynamics. “India’s growth momentum is expected to continue steadily in 2024 and beyond,” says Desai, highlighting key drivers such as rapid advancements in physical and digital infrastructure, increased government capital expenditure, and a diversified manufacturing footprint following post-Covid geopolitical realignments. Desai points to the decade-low banking NPAs and corporate leverage, along with a reformed and digitised tax ecosystem, as pivotal contributors to India’s robust economic performance.
Desai has a positive outlook for the investment climate for the medium-to-long term, underpinned by India’s structurally robust domestic growth, healthy corporate profitability, and supportive pro-growth policies. According to him, the significance of India’s inclusion in JP Morgan’s Government Bond Index-Emerging Markets (GBI-EM), is a testament to India’s growing prominence in the global economy. However, Desai cautions against near-term risks such as a slowdown in global growth, geopolitical tensions, and inflationary pressures, both globally and domestically, which could impact investment decisions in 2024.
Reflecting on government policies, Desai emphasises the importance of further improving India’s ease of doing business ranking to attract more foreign direct investment (FDI). “Though India has attracted FDI to the tune of USD 596 billion from FY 15 to FY 23, there is potential for greater capitalisation of opportunities presented by China plus one policy of global MNCs,” he says. Desai underscores the need for continued focus on predictability and stability in foreign investment rules, including entry norms and KYC requirements, to foster a conducive business environment. Moreover, he emphasises the importance of a balanced regulatory approach that ensures ease of doing business while preventing misuse, alongside the appropriate interpretation and implementation of tax laws.
The Bombay Chamber of Commerce and Industry under the auspices of the Logistics and Supply Chains Committee, recently organized the Supply Chain Conclave at the Taj President in Mumbai. The theme of the conclave was Navigating Disruptions and Building Resilience by Embracing Innovation. The event brought together industry leaders, policymakers, Regulators and experts to delve into critical discussions shaping the future of supply chain management in India.
In her welcome address Pinky Mehta, Vice President of the Bombay Chamber and Chief Financial Officer of Aditya Birla Capital provided insights into the Chamber’s illustrious 188-year journey and highlighted its ambitious initiatives encompassing digitisation, sustainability, diversity, equity, and inclusion (DEI), and ease of doing business.
Dr. Sampath Kumar, Joint Director General of Foreign Trade, delivered a Special Address on Shaping India’s Trade Resilience through FTAs. He emphasized the importance of leveraging India’s competitive advantage in manpower and navigating tariff and non-tariff barriers to seize opportunistic periods for export growth.
The event also featured an Address by Chief Guest, Shri. Unmesh Sharad Wagh, IRS, Chairman of the Jawaharlal Nehru Port Authority (JNPA). Shri Wagh shed light on India’s resilient supply chain ecosystem, even during the challenges posed by the COVID-19 pandemic, and outlined the government’s supportive measures and initiatives to enhance logistics efficiency.
The first panel discussion, moderated by Tej Contractor, Director of Mayur C. Contractor Logistics, explored the theme of Continued Disruption, a New Normal in Supply Chain. Panelists included industry stalwarts, namely – Seema Kapur, Director ‑ Export Logistics, Jubilant Ingrevia, Deepal Shah, Group Chief Financial Officer, Allcargo Logistics, Amartya Kumar Guha, Vice President – Supply Chain, Sugar Cosmetics and Alejandro Sánchez de la Rosa, Economic and Commercial Affairs Head, Consulate of Mexico in Mumbai. The panelists discussed innovative strategies to navigate supply chain disruptions amidst geopolitical tensions and global crises.
The Conclave also featured an enlightening Panel Discussion on Unlocking the Future: Emerging Technologies and Innovations in Supply Chain, moderated by Capt. Nikunj Parashar, Founder, Sagar Defence Engineering and Oceanos BV Netherlands with panellists, Capt. Nitin Mukesh, Nautical Surveyor-cum-Dy. Director General [Tech], DG Shipping, Michael Blohm-Pape, Head of customer service and Digital inventions, Hapag Lloyd, Uddhav Kumar, Co founder & CEO, Lynkit, Pankaj Aher, Head of SCM / CPO, Siemens India and Amit Mitna, Logistics Procurement Director Asia, Unilever, explored the transformative impact of emerging technologies such as AI and digital innovations on supply chain dynamics.
The event concluded with a featured session on Risk Mitigation for Supply Chain by R K Pandian, DGM & Regional Manager, ECGC.
Bombay Chamber of Commerce and Industry recently organised a Conclave on Small Finance: Enabling India’s journey to Amrit Kaal. In his keynote address at the Conclave, Nilesh Shah, Past President, Bombay Chamber and MD & Group President, Kotak Mahindra AMC said, “SMEs play a very crucial role in India’s economy. About 10 years ago, they were contributing 2/3rds of all the profitability of corporate India. Today also they contribute 50 per cent of corporate profitability in India.”
Shah also spoke about the credit schemes that the government has set up for the SME sector and how, due to schemes such as the Credit Guarantee Scheme launched during the pandemic, showed the world how Governments can intervene during turbulent times. He gave examples of SMEs who are doing extremely well in terms of technology adoption and are innovating to ensure that they deliver quality products. All they need is the right financing and leadership to become larger companies permeating the globe rather than remain small companies in India.
In his welcome address Sandeep Khosla, Director General, Bombay Chamber said, “Bombay Chamber’s 6th Economic Survey Outlook noted that access to finance was one of the major challenges faced by MSMEs. So we decided to focus on small finance in this Conclave to deliberate on this challenge.”
The first panel discussion on Small Finance – Challenges and Opportunities was moderated by Gopika Gopakumar, Senior Assistant Editor, Livemint and the panelists included Satyam Kumar, CEO & Co-founder, Loantap; Inderjit Camotra, MD & CEO, Unity Small Finance Bank; Rishi Gupta, MD & CEO, Fino Payments Bank and R Srinivasan, Director, AIRA Consulting. The panel delved into how regulatory changes are affecting funding criteria, how small finance banks look at MSMEs and whether schemes such as the Government’s ECLGS schemes need to be continued.
The second panel discussion was on Evolutionary Trends in NBFC Business Models. The panel was moderated by Anand Mihir, Partner & Leader, Financial Services Risk Consulting, EY India and the panelists were Amit Mande, Chief Revenue Officer, UGRO Capital; Mikhil Innani, CEO, Apollo Finvest and Ashok Dhamankar, CEO, Access to Capital Advisors. The panel discussed the role of new age NBFCs (Non-Banking Financial Companies) and MSME lenders, the customer needs for short-term financing, emphasising the importance of incorporating technological intervention to address these needs, and the need to select the right NBFC.
The ECI has issued a communication on grant of paid holiday, on the date of polls, to all employees who are entitled to vote in ensuing Lok Sabha Elections and the bye-elections in Assembly Constituencies.
The communication is issued under Section 135B of the Representation of People’s Act 1951.
Copy of the communication is attached.
Mr. Indranil Pan
Co-chair, Economic Policy Research & Development Committee,
Bombay Chamber & Chief Economist, Yes Bank
In conversation with the Bombay Chamber, Mr Indranil Pan, Chief Economist, Yes Bank, gives his insights into the economic outlook for India in 2024 and the factors influencing investment decisions in the current business climate.
What is your outlook on the Indian economy in 2024, considering global dynamics? What key factors do you think will drive or hinder growth?
How do you assess the current business environment in India and what factors do you anticipate influencing investment decisions in 2024? Any specific sectors of interest or concern?
How do you see government policies shaping the business landscape in 2024? Are there particular policy measures crucial for fostering a favorable environment for businesses?
The Maharashtra Labour Welfare Fund Amendment Act 2024 has been amended to increase the rate of contribution to Rs 25/- per employee and thrice that rate for an employer.
Notification dated 18.3.24attached
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |