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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.

We expect the Indian economy to grow at 6.9% in FY25, slowing slightly from the 7.3% growth

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?

• The Indian economy has exhibited resilience in the face of tight domestic financial conditions and also global slowdown. Going ahead we expect the domestic economy to slow as global growth slowdown becomes more pervasive and as the RBI continues to maintain a tight leash on monetary policy, leading to a fuller passthrough of rates. We expect the Indian economy to grow at 6.9% in FY25, slowing slightly from the 7.3% growth (as per the government’s advance estimates).

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?

• The balance sheets of the companies as also the banks are robust, thereby indicating a good base for private investment activity to pick up. Sectors that are linked to the government’s capex cycle are likely to continue to do well, given our expectation of continued support from the government towards infrastructure building. However, sectors linked to consumption – especially rural consumption may continue to lag as rural income growth suffers on account of low agricultural production and also muted growth in real wages.

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?

• There is possibly little that the government can do now to boost the business landscape – most of the policies have been undertaken but will take time to yield results – for instance the PLI scheme. Further, balance sheets of companies and banks are doing well and hence, the government will have to wait patiently for the “crowding in” of the government capex push to take hold. Importantly, the government will have to find ways to raise the outlays for health, education and R&D to ensure gains in productivity for the future.

“India’s inclusion in JP Morgan’s Government Bond Index-Emerging Markets, testament to growing prominence in global economy:”

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.

Ministry of Statistics and Programme Implementation (MoSPI) launches eSankhyiki Portal

The Ministry of Statistics and Programme Implementation (MoSPI) is the nodal Ministry for integrated development of the national statistical system in the country in tune with the global statistical practices and data dissemination standards. MoSPI is committed to enhancing user experience and data accessibility through use of cutting-edge technologies and the adoption of global best practices. In line with this mandate, the Ministry has developed an eSankhyiki portal (https://esankhyiki.mospi.gov.in) to provide real-time inputs for planners, policy-makers, researchers and the public at large. The objective of this portal is to establish a comprehensive data management and sharing system for ease of dissemination of official statistics in the country.

The eSankhyiki Portal has two modules namely:

Data Catalogue Module: This module catalogues the major data assets of the Ministry at one place for ease of access. This module allows users to search within datasets, including within tables, and download data of interest to increase its value and re-usability. The module has seven data products, namely National Accounts Statistics, Consumer Price Index, Index of Industrial Production, Annual Survey of Industries, Periodic Labour Force Survey, Household Consumption Expenditure Survey and Multiple Indicator Survey. The Data Catalogue section already includes over 2291 datasets along with specific metadata and visualization for each dataset for user convenience.

Macro Indicators Module: This module offers time series data of key macro indicators with features for filtering and visualising data enabling ease of access for the users. The module also allows users to download custom datasets, visualisations and sharing them through APIs, thereby increasing the re-usability of data. The first phase of the module includes four major products of MoSPI: National Accounts Statistics, Consumer Price Index, Index of Industrial Production, and Annual Survey of Industries, encompassing the data of last ten years. The portal currently hosts more than 1.7 million records.

The eSankhyiki portal (https://esankhyiki.mospi.gov.in) has officially been launched on the Statistics Day by Dr. Arvind Panagariya, Chairman of the 16th Finance Commission of India, in a function held on 29th June, 2024. The initiative is in sync with the theme of the Statistics Day- ‘Use of data for Decision making’ as ease of access of data is the prerequisite for evidence based decision making. It is a user centric data portal which facilitates use and reuse of information for creating impact through value addition and analysis by the users. The portal can also be accessed through the website of MoSPI (https://mospi.gov.in/).

The Govt of Maharashtra has issued a notification notifying Maharashtra Factories (Safety Audit) (Amendment) Rules,
2024

Copy of notification attached.

“India is at the threshold of a major structural shift in its growth trajectory”

RBI Governor Shaktikanta Das at 188th AGM of Bombay Chamber

India is at the threshold of a major structural shift in its growth trajectory, moving towards 8 per cent GDP growth in a sustained manner, said RBI Governor Shri Shaktikanta Das. He was speaking at the 188th AGM of the Bombay Chamber of Commerce & Industry. Giving figures, Shri Das said that the average growth India recorded over the last three years is 8.3%, with the current year projected at 7.2% growth. “The Indian economy in the last FY contributed to 18.5 percent of global growth – and this is no mean achievement,” he added.

Listing the main causes of this growth in the last three years, Shri Das pointed out that structural reforms such as the Goods and Services Tax (GST) have contributed vastly to this growth. “The GST has avoided tax on tax and has the advantage of avoiding multiplicity of taxes,” he said. He also pointed out that GST has stabilised much faster than other economies – this is reflected in the fact that the tax collections in GST have touched 1.7 lakh crores per month. Further, the introduction of the Insolvency and Bankruptcy Code and Flexible Inflation Targeting Framework by way of amendment to the RBI Act in 2016 helped this growth.

Shri Das further said that India’s growth story has been and will be multi-sectoral. “A country with a 140-crore population, which is the fifth largest economy, aspiring to become the third largest and an advanced economy by 2047, cannot depend on a single sector.” He mentioned how growth is well sustained with the outlook for the current year at 7.2 %, while with inflation at 4.7 per cent with downside risks, the central bank aims to bring it down to 4%. However, he cautioned that with inflation within striking distance of 5%, in the event of any weather vagary, there is a need to be vigilant.

He also spoke about the Central Bank Digital Currency (CBDC) and said that it is the future of money. He added that the digital currency will not be in competition with UPI and, instead, both will co-exist and be interoperable.

Concluding his Address, Shri Das said, “As a central bank, we have issued our agenda for RBI@100. We are at the forefront of adoption of technology and of innovation and are fully committed to all its mandates and responsibilities assigned to it and in supporting India’s growth story.”

Delivering his Presidential address, Ritesh Tiwari, outgoing President, Bombay Chamber of Commerce & Industry and CFO, Hindustan Unilever Ltd. and Unilever South Asia, outlined the Chamber’s various path-breaking initiatives and said, “Bombay Chamber’s continued programmatic educative interventions, like the many we did this year, are paramount to accelerate the pace of digitisation across the country that is needed to capitalise on this potential thus driving pan India innovation.”

Tiwari also highlighted the high quality of advocacy papers submitted by the Bombay Chamber, and their impactful recommendations to the SEBI expert committee for improving the ease of doing business. He noted that most of these recommendations were accepted and are now open for public consultation, emphasising that such advocacy by the Chamber has a significant and tangible impact.

In her mission statement, Pinky Mehta, President Designate, Bombay Chamber of Commerce & Industry and CFO, Aditya Birla Capital Ltd., said, “In keeping with our government’s vision of making India a Developed Nation, I wish to call my mission statement ‘Collaborative Development towards a Viksit Bharat‘. The same four critical aspects of the mission will continue with a focus on (1) Embracing Digitalisation (2) Bringing ESG to the heart of business (3) Enhancing Ease of Doing Business and (4) Fostering Diversity, Equity, and Inclusion.”

At the event, the Chamber also unveiled the findings of its inaugural Sustainability Practices Survey. Anirban Ghosh, Chairman of the Sustainability Committee at Bombay Chamber and Head of the Centre for Sustainability at Mahindra University, presented the key highlights.

Aligned with Prime Minister Narendra Modi’s vision of Viksit Bharat@2047, the evening also saw a Panel Discussion on the topic, moderated by Dr. Sachchidanand Shukla, Chairman, EPRD Committee, Bombay Chamber and Group Chief Economist, Larsen & Toubro Ltd. The panel featured Nilesh Shah, Past President, Bombay Chamber and Group President & MD, Kotak Mahindra AMC, Navneet Munot, Director, Bombay Chamber and MD & CEO, HDFC Asset Management Company, Neelkanth Mishra, Chief Economist, Axis Bank and MD & Head of Global Research, Axis Capital and Santanu Sengupta, Chief India Economist, Goldman Sachs. The speakers discussed steps that need to be taken for India to reach its aim of a Viksit Bharat by 2047. They noted that India is advanced in digital infrastructure and progressing in physical infrastructure, with potential stabilisation of social infrastructure in the coming years. There is a need to ensure growth shifts from poverty to middle income. Reforms are also needed in areas such as GST, direct tax and urban infrastructure, where the biggest drawback for us viz a viz developed countries is capital stock.

Rajiv Anand, Sr. Vice President Designate, Bombay Chamber and Deputy Managing Director, Axis Bank, delivered the Vote of Thanks.