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The J & K High Court has held that where a principal employer engaged a Contractor for execution of some works, he is liable to compensate to any employee engaged by the Contractor for doing his work.

Copy of judgement attached.

Union Minister of Commerce and Industry Shri Piyush Goyal holds meetings with counterparts at G7 Trade Ministers’ meet in Italy

Shri Goyal discusses deeper economic ties and FTAs with EU and UK on sidelines of G7 meeting. Shri Goyal calls for collaboration to reinforce global supply chains in critical minerals, semiconductors, pharma and green energy. Shri Goyal highlights need for robust partnerships in the face of 3 Cs – Covid, Conflicts and Climate Change

Union Minister of Commerce and Industry, Shri Piyush Goyal, attended the G7 Trade Ministers’ meeting held at Villa San Giovanni, Reggio Calabria, Italy. The meeting served as a pivotal platform for discussions on enhancing global trade relations and economic cooperation. On the sidelines of the meeting, Shri Goyal engaged in several high-level bilateral meetings with his international counterparts, reflecting India’s commitment to fostering stronger economic partnerships globally.

During discussions with Antonio Tajani, Italy’s Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation, both the Ministers agreed to enhance bilateral trade and investments, industrial co-production, and cooperation in clean technologies. Minister Goyal congratulated Mr. Tajani for hosting a productive G7 Trade Ministers’ meeting.

Discussions with Valdis Dombrovskis, Executive Vice President of the European Commission focused on promoting India-EU trade and economic collaborations, including ongoing FTA negotiations. Both sides explored opportunities to strengthen cooperation in various areas of mutual interest.

Shri Goyal in talks with New Zealand’s Trade Minister, Mr. Todd McClay explored opportunities to enhance bilateral trade and investment ties for mutual growth. The discussions aimed at giving further impetus to the existing strong trade relationship between India and New Zealand.

Shri Goyal congratulated Mr. Jonathan Reynolds, UK Secretary of State for Business and Trade on his appointment and discussed deepening bilateral economic relations. The conversation included plans to take forward the discussions on Free Trade Agreement (FTA) between India and the UK.

Shri Goyal in conversation with Dr. Robert Habeck, Federal Minister for Economic Affairs & Climate Action, Germany discussed opportunities to elevate the growing Indo-German trade and economic partnership. The discussions focused on the upcoming Inter-Governmental Consultations and the Asia-Pacific Conference of German Businesses in Delhi.

These bilateral engagements are expected to pave the way for significant advancements in India’s trade relations with key international partners.

Shri Goyal’s participation in the G7 Trade Ministers’ meeting underscores India’s proactive approach in engaging with global economies to foster trade and economic cooperation.

During this session, Shri Goyal thanked Mr. Antonio Tajani for the invitation and highlighted the importance of analyzing global supply chains’ robustness in times of crisis, referencing the Covid-19 pandemic, Ukraine-Russia conflict, and Red Sea crisis.

He emphasised the efforts of various countries to build resilient supply chains under platforms like the G20 Generic Framework for Mapping GVCs, the 14 Member IPEF association, Trilateral Supply Chain Resilience Initiative (SCRI), and India-EU TTC.

He discussed India’s initiatives with strategic partners such as the US, GCC countries, and the EU, including the India-Middle East-Europe Economic Corridor (IMEC) to strengthen supply chains, and highlighted India’s domestic measures to enhance multimodal connectivity for a seamless supply chain integrated with markets, distribution systems, and logistics.

The minister proposed collaboration among trusted partners to reinforce global supply chains in critical areas such as critical minerals, semiconductors, pharmaceuticals, and green energy; and advocated public-private partnerships, investments in critical infrastructure, innovation, and consistent regulatory frameworks across G7 countries and partner nations.

He addressed the impact of the 3 Cs – Covid, Conflicts, and Climate change – on global value chains, emphasizing the necessity for robust partnerships and cooperation. He also introduced the concept of the 3 Fs – fragmented, fragile, and fraught with uncertainties – characterizing the current global context and urged for greater alignment of investment, trade, environment, and energy policies to fortify global supply chains.

He emphasised the need for resilient supply chains that endure beyond the current generation.

MoPSW to host ‘State Maritime & Waterways Transport Committee’ meeting on 16th July

Committee aims to ensure comprehensive development of maritime and waterways transport across the country. Meeting will focus on preparation of a State specific Maritime and Waterways Transport Master Plan, Maritime Sector Policies, Green Initiatives, Waterways Development, Cruise Tourism, Urban Water Transportation, Development of Lighthouses

The Ministry of Ports, Shipping, and Waterways (MoPSW), Government of India, will convene the State Maritime & Waterways Transport Committees (SMWTC) meeting on 16th July 2024 at 10:00 AM via video conferencing, chaired by Shri TK Ramachandran, Secretary, MoPSW.

The committee aims to ensure comprehensive development of maritime and waterways transport across India, expanding its reach to include the remaining states. The meeting will focus on the preparation of state-specific Maritime and Waterways Transport Master Plans, formulation of Maritime Sector Policies, Green Initiatives, Waterways Development, Cruise Tourism, Urban Water Transportation, and the Development of Lighthouses.

Recognising the need for a unified approach to manage and integrate the waterways transportation sector, the Ministry has established SMWTCs to coordinate various initiatives and schemes within each state. These committees will be pivotal in consolidating efforts and providing focused leadership in the maritime and waterways sector. Each SMWTC will be headed by the Chief Secretary or Additional Chief Secretary and include representatives from major ports, maritime boards, state PWD, Inland Waterways, Department of Tourism, Department of Fisheries, Railways, NHAI, Customs, etc.

Currently, SMWTCs have been constituted in 13 states, including Andhra Pradesh, Mizoram, Himachal Pradesh, Nagaland, Puducherry, Rajasthan, Bihar, Assam, Goa, Kerala, Uttar Pradesh, Maharashtra, and Lakshadweep, with plans to establish them in all 30 coastal and waterways states and UTs of India.

The agenda for the meeting includes reviewing the progress made by already constituted SMWTCs, discussing the issues faced by different states along with discussion on implementation of Sagarmala Programme, development of National Maritime Heritage Complex (NMHC) at Lothal, opportunities in Ro-Ro / Ro-Pax / Ferry / Urban Water Transportation, Sagarmala Shipbuilding Clusters, Harit Nauka (Green Transition) Scheme for Inland Waterways, Cargo Promotion Scheme, MoUs with States for Coastal and River Cruise Tourism and support for State Inland Waterway Transport.

Chief Secretaries and Additional Chief Secretaries, as Chairpersons of SMWTCs, will present progress in their states, SMWTC initiatives, state-specific issues, and required support from the Ministry, aiming to review progress, address issues, and foster collaborative solutions to enhance maritime and waterways transport in India.

Disputes relating to lock-in periods that apply during the subsistence of employment contracts are arbitrable under the Arbitration and Conciliation Act, 1996.

Copy of judgement attached.

Tata Group Airlines completes harmonisation of operating manuals

Tata Group Airlines have concluded the harmonisation of the operating procedures across its key functions, including harmonisation of the supporting manuals across all four carriers, reaching an important milestone in the merger of four airlines into two.

Over the last 18 months, a team of more than 100 members have worked to align on the best practices and adopting common operating procedures. The result of this will be two separate manuals for the full-service carrier and the low-cost carrier.

“This is an important milestone in the merger of the Tata Group airlines and we are grateful for the support received from the Ministry of Civil Aviation in terms of timely clearances for the merger process. We are also grateful to DGCA for their continuous guidance, systematic review and approval of the harmonized operating manuals. DGCA has guided our teams with a safety-first change management approach which is congruent with the safety-first priorities of the TATA Group. The live tracker created by the Flight Standards Directorate of DGCA with a dedicated team for continuous monitoring of the progress of the harmonisation process has been instrumental in achieving the challenging task in a time bound manner,” said Campbell Wilson, Chief Executive Officer & Managing Director, Air India.

Air India and group companies are initiating the necessary crew training to action the harmonized processes, which will be another step in the direction towards building the new Air India and Air India Express.

After 69 years as a government-owned enterprise, Air India and Air India Express were welcomed back into the Tata group in January 2022. Air India is navigating through a major five-year transformation roadmap under the aegis of Vihaan.AI, with an ambition to become a world class airline with an Indian heart. The first phase of this transformation, the taxi phase was recently concluded, and focused on fixing the basics. These included bringing back to service many long grounded aircraft, addition of talent across flying and ground functions, rapid upgradation of technology and strengthening of customer care initiatives amongst others.

New EU trade body FEBI elects office bearers, aims to galvanise EU-India businesses

New Delhi, July 8, 2024: The Federation of European Business in India (FEBI), the official Chamber of EU businesses in India, supported by EU Delegation in India and the Embassies of the EU Member States, has held its first Annual General Meeting, marking a significant milestone in its new journey. The meeting formalised the Board of Directors with 14 elected members and confirmed key office bearers.

Mr. Rémi Maillard (President and Managing Director of Airbus in India and South Asia) will lead FEBI as its first President, with Mr. Sanjay Tiwari (Public Affairs Advisor to Maersk India Pvt. Ltd.) and Mr. Oscar Esteban (President, Indo-Spanish Chamber of Commerce), elected as Vice-President and Treasurer respectively. The inaugural AGM was held in New Delhi on July 4, 2024.

Mr. Hervé Delphin, Ambassador of the EU to India and Honorary President of FEBI said: “EU-India relations have been on an ascending trajectory, with a growing economic footprint. Over 4500 European companies are present in India, providing 6.5 million direct and indirect jobs. The EU is India’s largest trading partner in goods, with trade amounting to EUR 123 billion in 2022-23, and ranks among the top three investors in India. Ongoing negotiations for a Free Trade Agreement between the EU and India hold promise to enhance trade flows and economic cooperation significantly. FEBI will bring a very much needed business perspective that will contribute to the further expansion and bringing together of the EU-India economic and trade eco-system. It will be a true force multiplier.”

FEBI will maintain close and constructive relations with Indian and European authorities, acting as a credible intermediary between government and businesses and an advocacy place for pro-business policies and solutions. Currently, FEBI boasts a membership of 73 companies representing a diverse cross-section of EU Member States across 10 sectors in India, including Aerospace, Automotive, Agri-food Products, Chemicals & Pharma, Consumer & Luxury Goods, Finance & Insurance, Telecom & ICT & Digital Trade, Machinery & Capital Goods, Energy & Renewables, and Transportation & Logistics. More companies are in the process of joining FEBI.

“It is as much an honour as a responsibility to helm FEBI as its inaugural president. FEBI will serve as a bridge between Europe and India to deepen bilateral trade and investment. India’s rapid expansion holds significant potential for European companies to grow here in a symbiotic way. We will work with our Indian and EU stakeholders and industrial partners to ensure that trade opens more opportunities, thereby helping both regions to grow and thrive together. I thank my colleagues at FEBI for putting their trust and confidence in me,” said Mr. Rémi Maillard after his confirmation as President of FEBI.

FEBI’s Board of Directors include –

– Rémi Maillard, President and Managing Director, Airbus in India and South Asia
– Sayeed Ahmed, CEO/ Director, Biesse India Pvt. Ltd.
– Aditya Narain Sinha, Vice President & Director, ALAR Group, Business Development, International Seaport Dredging Pvt. Ltd. (DEME  Group Belgium)
– Stefan Leser, Managing Director, Groz Beckert Asia Private Limited
– Susanne Gun Elisabeth Pulverer, CEO and Chief Sustainability Officer, IKEA India Pvt. Ltd.
– Sanjay Tiwari, Public Affairs Advisor to Maersk India Pvt. Ltd.
– Shekhar Bhide, VP–Customer Services & Corporate Affairs, Mercedes-Benz India Pvt. Ltd.
– Ashutosh Sharma, Executive Director, Mondragon Corporation, India,
– Deepak Sharma, Managing Director & CEO, Schneider Electric India Private Limited,
– Payal S. Kanwar, Director General, Indo-French Chambers of Commerce and Industry (IFCCI)
– Stefan Halusa, Director General, Indo-German Chamber of Commerce (IGCC)
– Claudio Maffioletti, Secretary General, Indo-Italian Chamber of Commerce and Industry (IICCI)
– Oscar Esteban, President, Indo-Spanish Chamber of Commerce, CEO of SIS-Prosegur and Business Director of Prosegur for Asia
– Kamal Bali, President & Managing Director, Volvo Group in India, Chairman, Swedish Chamber of Commerce India (SCCI).

About FEBI: The Federation of European Business in India (FEBI) is the official Chamber of EU businesses in India, supported by EU Delegation in India and the Embassies of the EU Member States. FEBI’s mission is to articulate the collective business business interests of EU companies in India and facilitate the growth in trade and investment between the EU and India.

The Government of Karnataka has published the draft Karnataka Platform based Gig Workers Social Security and Welfare Bill, 2024 calling for comments.

Copy of public notice attached.

UNDP Partners with the DFINITY Foundation to Enhance Financial Inclusion of MSMEs

ZURICH, SWITZERLAND, JULY 3rd, 2024 – UNDP is pleased to announce a new partnership with the DFINITY Foundation, which will leverage the Internet Computer blockchain technology to further develop and implement the Universal Trusted Credentials (UTC) initiative. This collaboration underscores a significant step towards enhancing digital trust and financial inclusion for Micro, Small, and Medium Enterprises (MSMEs) globally.

This framework – the Universal Trusted Credentials (UTC) launched in collaboration with the Monetary Authority of Singapore (MAS) and other strategic partners,– when implemented in several countries, will not only enhance domestic access to financing for MSMEs but also unlock access to trade financing across participating countries due to the enhanced cross-border trust in the data provided. The UTC solution aims to stimulate the adoption of digital technologies, which will include blockchain-based solutions, with the view to ultimately build a vibrant and sustainable financial ecosystem that empowers MSMEs.

The DFINITY Foundation will utilize its expertise in decentralised compute platforms and digital identity solutions to develop and test the prototype for a robust data infrastructure (platform) for the UTC pilot initiative in Cambodia. This infrastructure will ensure the secure storage and management of digital credentials, enhancing the trust and reliability of the UTC system.

“The partnership with the DFINITY Foundation marks a pivotal moment in our efforts to advance digital inclusion and economic empowerment for MSMEs in Cambodia,” stated Marcos Neto, UN Assistant Secretary General and Director of UNDP’s Bureau for Policy and Programme Support. “By harnessing cutting-edge technology, we can create a more secure and accessible digital credentialing system that will drive sustainable development and economic growth.”

The DFINITY Foundation is the creator and major contributor to the Internet Computer Protocol (ICP), the underlying technology that will be instrumental in building a decentralized and tamper-proof data infrastructure, providing the high level of security and transparency needed for the UTC initiative to succeed. This collaboration will not only benefit Cambodian MSMEs but after the pilot in Cambodia, this project plans to scale to 10 countries.

“MSMEs represent the backbone of most economies, and the UTC initiative represents a unique opportunity to bring transparency and increase inclusion within a financial system that often fails to cater to their needs”, stated Dominic Williams, Chief Scientist and Founder of the DFINITY Foundation. “By utilizing the Internet Computer blockchain technology, the UTC initiative is set to benefit from over a thousand person-years of research and development and will be supported by some of the leading cryptographers and experts in the field of digital identity”.

This initiative is part of a broader effort by the UNDP to leverage technology and innovation to achieve the Sustainable Development Goals (SDGs) and improve the livelihoods of vulnerable populations.

For more information on the UTC initiative and the DFINITY Foundation, please visit UNDP Singapore Centre website and the Internet Computer website.

“India will deliver stable and sustainable growth in an otherwise volatile global macroeconomic environment”

Mr. Asit Bhatia
Vice Chairman of the Global

Corporate & Investment Banking Group at India
Bank of America

“Of the 22 countries that get into elections in 2024, India is amongst the important ones. While fiscal profligacy in the run up to elections is not unheard of, the current government is expected to continue its focus on some additional expenditure to fuel growth,” said Asit Bhatia, Vice Chairman of the Global Corporate & Investment Banking Group at India Bank of America, as he reflected on the economic outlook for 2024 amidst the evolving global economic landscape.

Bhatia anticipates a period of stability and growth, with India poised to deliver steady and sustainable growth despite the volatile global macroeconomic environment. “I see the next several years as a golden period for India,” he added, expressing confidence that India’s growth rate could exceed the anticipated 6.5-7% over the next couple of years.

Acknowledging the commendable job by the Government and the Reserve Bank of India (RBI) in managing inflationary pressures, Bhatia emphasised the potential for further growth. “Various factors underscore India’s resilience in the face of global economic challenges,” he noted, citing the Government’s infrastructure push, healthy corporate balance sheets, robust consumption narrative, and well-capitalised banks witnessing heightened credit growth.

Assessing the current business environment in India, Bhatia highlights robust macroeconomic fundamentals, including high growth, manageable fiscal deficits, controlled inflation, and improving current account deficits. “The Government’s reform-driven approach (GST, IBC, RERA, labor laws etc.) has improved ease of doing business in India,” he said. Bhatia cited the key factors that will influence investment decisions as political instability that will jeopardise policy continuity, external shocks from geopolitical issues and rate/policy paths of global central banks.

Anticipating the factors influencing investment decisions in 2024, Bhatia pointed to potential risks such as political instability and external shocks arising from geopolitical tensions. While he believes that no specific sectors of concern but underscores the attractiveness of India’s manufacturing and consumption narrative, the services sector catering to global demands, and the financial sector poised for substantial credit growth due to under-penetration.

Examining the role of government policies in shaping the business landscape in 2024, Bhatia emphasised their pivotal importance adding that taxation policies, capital controls, protectionism, and infrastructure development initiatives are significant determinants of economic growth. He anticipates a continued thrust on reforms from the government, conducive to attracting foreign investment and fostering domestic capex. “We see rapid infrastructure ramp up, de-carbonisation (500GW renewable capacity by FY30), step up in exports (on implementation of PLI schemes), opening up of government monopolies (privatisation), improving tax compliance (increasing tax filers), rising digitisation and financial inclusion to continue to provide scope for India’s corporate earnings to outpace its nominal GDP growth structurally.”

Amidst the optimism, however, he cautions against overlooking external factors such as geopolitical tensions and recessionary trends in developed nations, which could hinder India’s growth trajectory, “I do see the global geo-political situation, recessionary trends in some of the more developed countries, a global high-interest rate / inflationary environment, as some of the key factors that can hinder India’s growth, as we are now more than ever entwined with the global economy.”

India’s strong economic fundamentals to help India sustain over 7% GDP growth

Mr. Nilesh Shah

Past President, Bombay Chamber and MD & Group President, Kotak Mahindra AMC

India’s economic growth trajectory remains positive in 2024, supported by strong domestic demand and a pick-up in private and public investments. However, global headwinds like rising interest rates in developed economies and potential recession worries could temporarily slow export demand and manufacturing activity, believes Nilesh Shah, Past President, Bombay Chamber and MD & Group President, Kotak Mahindra AMC, as he shares his insight on how the country will perform in 2024.

India has strong economic fundamentals. These include domestic consumption, policy stability and reforms. These factors should help India outperform other countries. They should also help India sustain over 7% GDP growth. This is like expecting a batsman to score a century every time they bat.

The current business environment in India looks conducive for attracting investments in 2024, aided by policy stability, continuity and ongoing macroeconomic stabilisation. Sectors like banking and financial services, information technology services, and manufacturing look particularly attractive as credit growth picks up, digital transformation rises and Make in India gains traction. However, pockets of overvaluation and irrational exuberance in some stocks could pose risks for investors, like low floating stocks where valuations remain high.

The government’s continued reform push across sectors like infrastructure, manufacturing, financial services is expected to significantly improve India’s competitiveness and lift its growth potential. Ongoing focus on governance, policy stability, green transition and sustainable growth makes India an attractive investment destination compared to other emerging markets like China, Brazil and South Africa. Continuity on this front is crucial for fostering a favorable business environment.