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Insurance Summit 2024 Points a Lens on Insurance for All by 2047

India’s insurance market, valued at USD 131 billion, is currently the 10th largest in the world, contributing to 1.9% of global premiums. Over the past two decades, private sector involvement, enhanced distribution, and operational efficiency have driven significant growth. Projections indicate that by 2032, India will become the sixth-largest insurance market. Despite being a developing market, India has the potential, particularly in non-life insurance, to surpass global competitors. Factors such as a young population, rising incomes, robust economic growth, digital technology, and regulatory measures are propelling this growth trajectory. The Insurance Regulatory and Development Authority of India (IRDAI) is pushing this agenda through its vision of “Insurance for All” by 2047, which aims to increase penetration, ease business operations, and attract investments.

“Insurance for All: Vision 2047” was also the theme of the Bombay Chamber Insurance Summit, which addressed crucial topics such as risks, distribution models, and the role of technology in the industry. The Summit was supported by PwC, the Knowledge partner, Shriram Life insurance, India Insure and Medi Assist, who were the Associate Sponsors and Unilight, Prudent, Insurance Dekho and Marsh India Insurance Brokers, who were the Supporting partners.

In his welcome address, Sandeep Khosla, Director General of the Bombay Chamber of Commerce & Industry, spoke about the Chamber’s role in liaising between the business community and regulatory bodies to improve the ease of doing business through events such as the Insurance Summit.

Praveen Vashishtha, Former Co-Founder of Howden Insurance Brokers India, Chairman of Howden Asia, and Member of the BFSI Committee at the Bombay Chamber, set the theme for the Summit, underscoring the market’s transformative potential. Vashishtha discussed the Indian insurance market’s key features, including its young population, low insurance awareness, and regulation. He noted the need for improved operating processes and ecosystem refinements. Challenges such as India’s low insurance penetration rate of 4%, compared to the global average of 7%, and the significant protection gap in non-life insurance were highlighted. He emphasised the importance of property insurance in urbanising cities, the need for granular data in general insurance, and wider reach for life insurance. He also spoke about the transformative role of emerging technologies like AI in catering to digitally savvy Millennials and Gen Z.

Delivering the keynote address, Shri B. C. Patnaik, Member Life IRDAI, discussed the future trajectory of the insurance industry and regulatory measures supporting growth. He stressed that insurance should be as widely available as mobile phones to achieve the vision of “Insurance for All” by 2047. Highlighting the low current insurance coverage in India compared to global standards, he noted that only 25% of Indians have some form of insurance versus 47% globally. Shri Patnaik pointed out that housing insurance rights extend to 70 crore people, and Ayushman Bharat covers 50 crore, both funded by the government. He emphasised that insurance should be seen as a developmental necessity rather than just a regulatory tool, and called for easing regulations to improve accessibility. He highlighted the financial strength of the Indian insurance market, particularly during the COVID-19 pandemic, noting its significant payouts which underscore its societal contribution. Highlighting the need for simplified insurance processes, Shri Patnaik advocated for making insurance more accessible to mitigate economic shocks and support India’s growth potential.

A position paper by Knowledge Partner PwC, “Insurance for All by 2047: The Role of Distribution Models, Products, Technology, and Ecosystem Players,” was unveiled at the event, detailing the challenges and opportunities within India’s insurance landscape.

The summit featured two insightful panel discussions. The first panel, moderated by Amit Roy, Partner and Leader of Insurance & Allied Businesses at PwC India, included K V Dipu, Senior President at Bajaj Allianz General Insurance; Rajiv Gupta, President at PB Fintech and Priya Deshmukh, Head of Health Products, Operations & Services at ICICI Lombard. They discussed business model disruptions, the evolving role of distributors and agents, product innovation, and the importance of technology and InsurTech partnerships. The panelists also spoke about the need to glamorise the insurance industry as a career option to attract more youth into the sector.

Delivering the Special Address, TL Alamelu, Principal Advisor at IFSCA and Former Member of IRDAI, spoke about the need for continuous investment in technology and process improvements to build trust and enhance transparency. She mentioned how the Indian insurance ecosystem is thriving, with regulators actively engaging stakeholders and adapting to industry needs, while the economy remains resilient and one of the fastest-growing globally, aiming to become a developed nation by 2047. This is an optimal time for the insurance sector, with a vision to ensure that every citizen and enterprise has appropriate coverage. Current insurance penetration is only 4%, but this figure may not accurately reflect true coverage due to small premium schemes like Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Alamelu emphasised that to achieve insurance for all, innovative methods and headcounts are needed to accurately determine the number of insured individuals. The industry must prepare for explosive growth and target those without any coverage, utilising data and statistics to guide efforts.

The second panel, moderated by S. Dinesh, Partner of Risk Consulting at PwC India, focused on “Emerging Risks & Possible Mitigation Towards Profitable and Sustainable Growth.” Panelists included Sharad Bajaj, COO of InsuranceDekho; S. Sunder Krishnan, Chief Risk Officer at LIC; Sameer Bhatnagar, Chief Compliance & Risk Officer, General Counsel & Head of Secretarial at Manipal Cigna Health Insurance Company; and Satyanandan Atyam, Chief Risk Officer at TATA AIG. The panel deliberated on various risks insurers face, including the impact of global market volatility on capital availability and investment portfolios, the increasing frequency of natural disasters and climate risk in underwriting, and concentration risks associated with climate and sustainability. They also discussed the challenges of adapting to new laws such as GST and IFRS 17, along with other regulatory changes. Additionally, they examined issues related to the adoption of new technologies, dependence on tech providers, competition from tech companies, and the availability of talent knowledgeable in insurance.

Bombay Chamber’s Governance Conclave Highlights Way Forward for Ensuring
Effective Governance

The Governance Conclave on ‘Enhancing Governance Assurance,’ organised by the Bombay Chamber, focused on the integration of a robust governance framework, a strong risk culture, clear strategic objectives, and reliable internal controls to ensure the growth of businesses. The Conclave was supported by Conclave supported by Ernst & Young LLP, Khaitan & Co., Aditya Birla Capital, Excel Industries, Colgate and Tata Chemicals.

Setting the theme for the Conclave, Pinky Mehta, President Designate of the Bombay Chamber and Chief Financial Officer at Aditya Birla Capital, underscored the importance of effective governance in today’s corporate landscape.

M. Damodaran, Chairperson of Excellence Enablers and former Chairman of SEBI, UTI, and IDBI, delivered the keynote address, focusing on the critical importance of corporate governance in contemporary business practices. Damodaran emphasised that the true challenge lies in effectively communicating governance principles and ensuring they are implemented beyond the confines of boardrooms. Highlighting the concept of excellence enablers, he spoke about how it involved doing the right things at the right time and in the right manner. This approach underpins sustainable business practices and builds trust with stakeholders, forming the bedrock of robust corporate governance. Corporate governance often becomes a focal point during times of uncertainty. Damodaran also pointed out that this is because governance is essential for maintaining integrity and trust in businesses, especially when other topics seem to have been exhausted.

Reflecting on the 2008 financial crisis in the U.S., Damodaran noted that the crisis underscored the consequences of poor governance. Key processes were overlooked, and those responsible for oversight failed to act diligently. This led to significant lapses in reporting and a subsequent loss of trust and economic stability. Enhancing governance assurance extends beyond mere compliance. Damodaran emphasised that governance should be viewed as a culture and a continuous improvement process. “How well are listed companies adhering to governance principles? There is a need to reinvent our understanding of governance to make it conducive to the ease of doing business.” Post-2008, there exists a degree of hypocrisy in governance practices, where laws became more complex but not necessarily more effective. He stated that the periodic review and updating of the statutory rules and regulations by removal of the obsolete and unwanted provisions will go a long way to facilitate ease of doing business

The first panel discussion, “Strengthening Governance through the Audit Committee,” was moderated by Bharat Vasani, Senior Advisor-Corporate Laws at Cyril Amarchand Mangaldas. The panellists included Uday Khanna, Independent Director on the Boards of Kotak Mahindra Bank, Pfizer, Castrol India, and Pidilite Industries; K.R. Venkatadri, Chief Commercial Officer at Tata Chemicals; and Sharad Abhyankar, Partner at Khaitan & Co. The discussion covered regulator expectations, the role of the Audit Committee in enhancing corporate governance, practical challenges, committee composition, and best practices for approving Related Party Transactions (RPTs).

The second panel discussion, “Role of Internal Audit in Assurance-Based Governance,” was moderated by Suhas Tuljapurkar, Founder Director, Legasis. The panel featured Shilpa Kedia, Group Finance Controller and Head of Investor Relations at HUL; P. R. Ramesh, Past President of the Bombay Chamber and Independent Director at Larsen & Toubro; Ashok Barat, Past President of the Bombay Chamber and Independent Director at Bata India; and Adithya Bhat, Partner, Risk Consulting at Ernst & Young LLP. They discussed the evolving role of internal audit, effective audit models for governance, and best practices in RPT, compliance, and executive director remuneration.

Bombay Chamber’s DEI Awards 2024 Celebrates Diversity Across the Spectrum

Diversity, Equity, and Inclusion (DEI) are crucial to company culture as they foster creativity, innovation, and new perspectives. Harnessing the power of DEI requires a systematic, concerted and collaborative industry effort, to open the conversation on solutions towards closing inclusion gaps in the country. The Bombay Chamber DEI Awards 2024 celebrated organisations that have innovatively made DEI part of their corporate DNA.

The winners of the second Bombay Chamber DEI Awards were announced at a glittering ceremony at the Four Seasons Hotel Mumbai. With Deloitte as Knowledge Partner, the awards saw nominations from companies across six categories: DEI Champion Award, Award for Gender Equality Champion, LGBTQIA+ Inclusion Award, Disability Confidence and Inclusion Award, DEI Award for Best Program (Underrepresented DEI groups other than Gender, LGBTQIA+, and PwD), and a Special Award for Micro, Small, and Medium Enterprises (MSMEs). This year, the Chamber received 129 nominations, a significant increase from the 81 nominations last year. The Banking and Financial Services sector led with 25 nominations, followed by Consumer Goods, Retail, E-Commerce, and Hospitality with 23. Indian companies submitted 85 nominations, while 44 came from international companies based in India. HSBC was the Associate Partner and Dow India was the Supporting Partner.

Welcoming the gathering, Sandeep Khosla, Director General of the Bombay Chamber, spoke about the Chamber’s long and illustrious journey. Ritesh Tiwari, President of the Bombay Chamber and CFO of Hindustan Unilever Limited and Unilever South Asia, set the theme for the event, emphasising the strategic importance of DEI in all organisations. He also spoke about how DEI has been a learning journey, reflecting through the nominations in the awards, and that lessons can be learned from all the nominations.

The event featured a fireside chat on “DEI as a Strategic Business Lever” with Nisaba Godrej, Executive Chairperson of Godrej Consumer Products Ltd., and Meenakshi Priyam, Chairperson of the Diversity & Inclusion Committee at the Bombay Chamber and Group CHRO at udaan. Godrej emphasised, “Leadership is a privilege where you should not just deliver numbers and service customers, but you need to serve your organisation as well. Fulfillment and meaning come from serving others.” She highlighted the importance of representation and shared stories illustrating this need, advocating for capable, passionate, and empathetic leadership, supported by Godrej’s detailed DEI scorecard as evidence of their commitment.

The evening also saw a panel discussion on “DEI in Corporate India: The Roadmap,” moderated by Nitin Razdan, Partner, Human Capital at Deloitte South Asia. The panel included Neera Saggi, the first woman President (2013-14) of the Bombay Chamber; Parimala Bhat, Founder & Chairperson of Snehankit Helpline; and Parmesh Shahani, Head of the Godrej DEI Lab. Shahani emphasised the importance of converting DEI intentions into actions through structural changes and continuous inclusivity efforts beyond token celebrations. Bhat discussed the severe challenges faced by marginalised communities in accessing healthcare, education, and employment, proposing practical solutions like mobile clinics, telemedicine, and corporate partnerships with hospitals, and advocating for societal awareness and support for people with disabilities. Saggi examined the progress of DEI in boardrooms, noting some advancements but emphasising the need for continuous assessment and psychologically safe workplaces. She called for corporate support systems and top leadership to champion diversity policies. Razdan explored the potential of AI in aiding marginalised groups, suggesting technology’s pivotal role in advancing DEI.

The second fireside chat on “Jury Reflection – Evolving DEI Journey in Corporate India” featured Puneet Chhatwal, Managing Director & CEO of The Indian Hotels Company Ltd., and Priyam. Chhatwal spoke about the jury’s decision-making process and the challenges faced by 24/7 businesses such as hotels in ensuring a diverse workforce.

The winners of the Bombay Chamber DEI 2024 Awards were:

Special Award for MSMEs
Winner: Shashi Natural and Organics Pvt Ltd
1st Runner-up: NICHEM Solutions.
2nd Runner-up: Juris Corp

DEI Champion Award
Winner: InterGlobe Aviation Limited (IndiGo)
1st Runner-up: Godrej Properties Limited
2nd Runner-up: Shell India Markets Private Limited
2nd Runner-up: Capgemini Technology Services India Limited

Gender Equality Champion Award
Winner: Capgemini Technology Services India Limited
1st Runner-up: Federal Bank
2nd Runner-up: Khaitan & Co.

LGBTQIA+ Inclusion Award
Winner: Godrej Properties Limited
1st Runner-up: Deutsche Bank Group
1st Runner-up: Shell India Markets Private Limited
2nd Runner-up: Khaitan & Co.

Disability Confidence and Inclusion Award
Winner: LTIMindtree Limited
1st Runner-up: Shell India Markets Private Limited
2nd Runner-up: Capgemini Technology Services India Limited

Best DEI Program Award
Winner: Standard Chartered Bank, India
1st Runner-up: Tata Communications Ltd
2nd Runner-up: TVS Motor Company

Bombay Chamber’s Landmark Conclave on SM REITs: Ownership to Opportunity Focuses on Fostering Economic Growth & Investor Confidence

India’s real estate sector is undergoing a revolutionary transformation driven by proactive regulatory reforms. These changes are enhancing accessibility, transparency, and stability for investors. Landmark initiatives include the RERA Act of 2016, which boosts developer responsibility, and the introduction of GST, which streamlines taxation. The advent of Real Estate Investment Trusts (REITs) regulations in 2014 has also established a new asset class, with the first Indian REIT listed in 2019, offering retail investors a gateway into institutional real estate.

The latest regulatory advancement by SEBI, the introduction of Small and Medium Enterprises REITs (SM REITs), is set to democratise real estate investment further. This new framework lowers entry barriers and enhances regulatory oversight, providing benefits such as liquidity and investor protection mechanisms. The move is expected to bring the real estate market into the sachet economy, making high-quality real estate investments accessible to a broader audience.

It is with this background that the Bombay Chamber of Commerce and Industry hosted the Conclave on SM REITs: Ownership to Opportunity, a pioneering event addressing the recent regulatory advancements in the real estate sector. This conclave, held under the aegis of the PE&VC Committee, highlighted the transformative potential of Small and Medium Real Estate Investment Trusts (SM REITs), newly regulated by SEBI as of March 8, 2024.

In her welcome address, Pinky Mehta, President Designate of the Bombay Chamber and Director at Aditya Birla Sun Life Insurance, emphasised SEBI’s framework as a game changer. She highlighted the opportunity for investors to own fractions of rent-yielding real estate assets with a minimum investment of Rs 10 lakh. This move supports asset monetisation for developers and fosters growth in the sector.

Ashith Kampani, Chair of the PE&VC Committee and Chairman of CosmicMandala Group of Companies, spoke on SEBI’s regulations for SM REITs democratising access to real estate investments. He highlighted the expected tenfold growth in the fractional ownership market, projecting assets under management to reach $5 billion by 2030.Kampani noted that SEBI’s new regulations not only democratise access but also standardise investment practices, fostering a more inclusive and dynamic real estate market.

Delivering the keynote address, Shri Pramod Rao, Executive Director of SEBI, provided a compelling narrative on the historical context and transformative potential of SM REIT regulations. Rao recounted SEBI’s journey from banning unregistered Collective Investment Schemes in the 1990s to the establishment of SM REIT regulations in 2024, marking a significant milestone in regulatory evolution. He delved into the intricacies of the SM REITs regulations, sharing his expertise and painting a vivid picture of their transformative potential for the real estate sector and the broader economic landscape.

Sushri Kamala K, Chief Regulatory Officer of BSE, emphasised the importance of popularising SM REITs and leveraging existing distribution channels for rapid rollout. She reflected on the transformation of exchanges into transparent, governed entities and advocated for a strategic approach to maximise growth potential. Kamala highlighted how exchanges have evolved over the past 30 years, becoming listed entities governed by high standards of transparency and governance.

The conclave featured two engaging panel discussions, providing a comprehensive view of the regulatory and market dynamics surrounding SM REITs. The first panel, moderated by Gaurav Karnik, Head of Real Estate Tax Practice at EY, focused on the regulatory aspects of SM REITs. Panelists included Shiv Parekh, Founder and CEO of hBits, Sudarshan Lodha, Co-Founder of Strata, Sandeep Parekh, Managing Partner at Finsec Law Advisors, and Nikhil Agrawal, Chief of Staff at WiseX. They offered insights into compliance requirements and investor protection mechanisms.

The second panel discussion, moderated by Neil Borate, Deputy Editor at LiveMint, explored the market opportunities and competitive landscape of SM REITs. Panelists Manish Kumar, Co-Founder and CEO of RealX & GREX, and Member, PE&VC Committee, Bombay Chamber of Commerce, Rahul Rai, Head of Real Estate Investment Business at ICICI Prudential AMC Ltd, Varun Gupta, CEO of Groww Mutual Fund, and Monang Doshi, Senior Director, Capital Markets & Land, CBRE India, discussed future trends and growth prospects in real estate investment.

Maiden India Pavilion at World Hydrogen Summit 2024, Netherlands showcases National Green Hydrogen Mission

For the first time, India has set up its own pavilion, at the World Hydrogen Summit 2024, being held in Rotterdam, Netherlands, during May 13 – 15, 2024. The India Pavilion, set up by the Ministry of New & Renewable Energy, Government of India, is one of the largest pavilions at the Summit and has been inaugurated by Secretary, Ministry of New and Renewable Energy, Shri Bhupinder S. Bhalla on May 12, 2024

The World Hydrogen Summit is a prestigious event in the global green hydrogen ecosystem. Around 15,000 delegates from around the world are expected to attend the Summit. The India Pavilion at the conference provides India an opportunity to showcase to the world the progress made by the country in the field of Green Hydrogen.

The Indian delegation comprises nominees from Ministry of New & Renewable Energy, Department of Science and Technology, Ministry of Railways, Ministry of Petroleum and Natural Gas and from private sector companies as well. In addition to various G2G interactions, the Summit provides a platform for Indian industry to engage with companies from around the globe.

India launched its National Green Hydrogen Mission in January 2023 with an overall outlay of Rs. 19,744 crores. India has set an ambitious target to achieve a green hydrogen production capacity of 5 MMT (Million Metric Tonnes) by end of the year 2030. As on date, the Ministry of New & Renewable Energy has awarded tenders for setting up of 412,000 tonnes of Green Hydrogen production capacity and 1,500 MW of electrolyzer manufacturing capacity.

India has also notified scheme guidelines for use of Green Hydrogen in steel, transport / mobility and shipping sectors. The Department of Science and Technology has initiated Hydrogen Valley Innovation Clusters to foster innovation and promote Green Hydrogen ecosystem in India.

A dedicated portal for the National Green Hydrogen Mission has been launched recently, to serve as a one-stop location for information on the Mission and steps taken for the development of the green hydrogen ecosystem in India. The portal can be accessed here: https://nghm.mnre.gov.in/.

The Istanbul Financial Center: Catalyzing Global Economic Shifts, Urban Ascendancy, and Collaborative Dynamics with Mumbai

In the evolving narrative of global economic dynamics, the rise of cities as central hubs of finance, innovation, and cultural exchange marks a transformative era. Amidst this urban ascendance, the inauguration of the Istanbul Financial Center (IFC) in April 2023 heralds a significant milestone not only for Türkiye but for the global financial landscape at large. This comprehensive initiative underlines Istanbul’s strategic ambition to bridge East and West, leveraging its unique geographical and historical legacy to foster a new epoch of global economic integration. This unique positioning offers a strategic advantage, providing a 24-hour operational window that overlaps with both Asian and Western financial markets.

What is Istanbul Financial Center?

With an investment of approximately $3.3 billion, the IFC’s infrastructure is designed to accommodate a broad spectrum of financial services and institutions. It brings together public and private sector entities, including banks, asset management companies, and insurance firms, aiming to create an efficient financial services ecosystem. This includes Türkiye’s most prominent financial authorities and offers a comprehensive suite of facilities designed to meet the needs of a global financial hub.

With facilities like 1.3 million square meters of office space, a shopping mall, a congress center, and a smart city model, the IFC aspires to host up to 50,000 employees daily, providing a state-of-the-art work environment.

The overwhelming interest from both domestic and international banks and financial institutions in leasing space within the IFC highlights its appeal and the anticipated economic impact. 

Strategic Vision Amidst Urban Ascendance

The vision behind the IFC is multifaceted, aiming to establish Istanbul as a key node in the network of global finance. This vision aligns with the broader trend of urban centers emerging as the epicenters of economic activity and innovation. In this context, Istanbul’s role transcends its national economic significance, positioning it as a strategic player on the international stage. President Recep Tayyip Erdoğan’s emphasis on the IFC creating a new financial ecosystem underscores the center’s potential to catalyze the flow of international capital, attract investment, and drive innovation in sectors such as Islamic finance, fintech and sustainable finance. This not only aligns with global financial shifts towards sustainability and digitalization but also positions Istanbul as a critical junction in the fabric of global economic relations, especially in facilitating trade corridors that span continents.

Istanbul and Global Trade Dynamics

The IFC’s strategic position is particularly pertinent in the context of emerging global trade corridors. Istanbul’s historical role as a crossroads of continents and cultures positions the IFC as a pivotal hub in these developments, facilitating the development of infrastructure, enhancing trade flows, and promoting economic cooperation across regions. This role of the IFC and Istanbul at large exemplifies the city’s evolving narrative from a historical bridge between East and West to a modern linchpin in the global economy​ 

Navigating the Future: Challenges and Opportunities

The journey ahead for the IFC involves overcoming geopolitical challenges and fostering a competitive environment to attract global finance. The center’s strategic facilities and the high demand for space within it signal its potential to become a leading global financial hub. Illustrating how cities like Istanbul are not just adapting to global economic shifts but actively shaping them. As the IFC commences operations, it stands as a beacon of Istanbul’s ambition and potential, reinforcing the city’s role in the tapestry of global finance and trade.

Potential Collaborative Opportunities Between Istanbul and Mumbai

Mumbai holds a pivotal role as India’s financial heart, integral to South Asia’s largest economy and influential both nationally and globally. Home to the Bombay Stock Exchange—India’s largest—and headquarters for numerous major banks and financial institutions, Mumbai is a strategic node in the global financial network. This makes it an excellent partner for emerging financial centers like the Istanbul Finance Center (IFC) to explore collaboration opportunities.

Both Istanbul and Mumbai play significant roles as financial hubs in their respective regions, presenting potential for fruitful collaborations. Here are some possibilities:

Fintech Collaborations: Istanbul and Mumbai could develop joint projects to enhance their fintech ecosystems. This could involve mentoring fintech startups, organizing hackathons and innovation competitions, and sharing knowledge and experience in fintech regulations.

Education and Research Partnerships: Universities in Istanbul and Mumbai could establish exchange programs for students and faculty, undertake joint research projects, and organize conferences. Such programs would provide students with an international perspective on finance and business education.

Sustainable Finance and Green Investments: The cities could collaborate on green bonds and investments in sustainable projects. Both cities could promote green financing mechanisms and create joint funds for sustainable development goals.

Regulatory Collaborations and Best Practices Sharing: Istanbul and Mumbai could exchange experiences and knowledge on financial regulations and policies, enhancing regulatory alignment and transparency. This would facilitate the integration of both financial centers into the global financial system.

Cultural and Economic Forums: The cities could host regular forums and summits on financial and economic topics to strengthen their collaboration. These events would provide significant networking opportunities for business leaders and policymakers, increasing investment opportunities.

Investing in Infrastructure Projects: Mumbai is continuously improving its infrastructure, and investing in these projects presents significant opportunities for Turkish construction and engineering firms. Such projects can take place in key areas like transportation, energy, and housing within the city.

Such collaborations, which are mutually beneficial, could bolster the global financial prominence of both cities and contribute significantly to their regional development.

As cities continue to rise as epicenters of economic and financial activity, Istanbul and Mumbai, through initiatives like the IFC, are set to play a central role in shaping the future of the global economy.

Cüneyt Yavuzcan
Consul General of Türkiye in Mumbai

Combined Index of Eight Core Industries (ICI) increases by 5.2 per cent

The combined Index of Eight Core Industries (ICI) increased by 5.2 per cent (provisional) in March, 2024 as compared to the Index in March, 2023. The production of Cement, Coal, Electricity, Natural Gas, Steel and Crude Oil recorded positive growth in March 2024. The details of annual and monthly indices and growth rates are provided at Annex I and Annex II respectively.

The ICI measures the combined and individual performance of production of eight core industries viz. Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products and Steel. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

The final growth rate of Index of Eight Core Industries for December 2023 is revised to 5.0per cent. The cumulative growth rate of ICI during 2023-24 reported 7.5 per cent (provisional) as compared to the corresponding period of last year.

The summary of the Index of Eight Core Industries is given below:

Cement – Cement production (weight: 5.37 per cent) increased by 10.6 per cent in March, 2024 over March, 2023. Its cumulative index increased by 9.1 per cent during 2023-24 over corresponding period of the previous year.

Coal – Coal production (weight: 10.33 per cent) increased by 8.7 per cent in March, 2024 over March, 2023. Its cumulative index increased by 11.7 per cent during 2023-24 over corresponding period of the previous year.

Crude Oil – Crude Oil production (weight: 8.98 per cent) increased by 2.0 per cent in March, 2024 over March, 2023. Its cumulative index increased by 0.6 per cent during 2023-24 over corresponding period of the previous year.

Electricity – Electricity generation (weight: 19.85 per cent) increased by 8.0 per cent in March, 2024 over March, 2023. Its cumulative index increased by 7.0 per cent during 2023-24 over corresponding period of the previous year.

Fertilizers – Fertilizer production (weight: 2.63 per cent) declined by 1.3 per cent in March 2024 over March, 2023. Its cumulative index increased by 3.7 per cent during 2023-24 over corresponding period of the previous year.

Natural Gas – Natural Gas production (weight: 6.88 per cent) increased by 6.3 per cent in March, 2024 over March, 2023. Its cumulative index increased by 6.1 per cent during 2023-24 over corresponding period of the previous year.

Petroleum Refinery Products – Petroleum Refinery production (weight: 28.04 per cent) declined by 0.3 per cent in March, 2024 over March, 2023. Its cumulative index increased by 3.4 per cent during 2023-24 over corresponding period of the previous year.

Steel – Steel production (weight: 17.92 per cent) increased by 5.5 per cent in March, 2024 over March, 2023. Its cumulative index increased by 12.3 per cent during 2023-24 over corresponding period of the previous year.

Note 1: Data for January, 2024, February, 2024 and March, 2024are provisional. Index numbers of Core Industries are revised/finalized as per updated data from source agencies.

Note 2: Since April 2014, Electricity generation data from Renewable sources are also included.

Note 3: The industry-wise weights indicated above are individual industry weights derived from IIP and blown up on pro rata basis to a combined weight of ICI equal to 100.

Note 4: Since March 2019, a new steel product called Hot Rolled Pickled and Oiled (HRPO) under the item ‘Cold Rolled (CR) coils’ within the production of finished steel has also been included.

Note 5: Release of the index for April, 2024 will be on Friday31st May, 2024.

Annex I

Performance of Eight Core Industries

Yearly Index & Growth Rate

Base Year: 2011-12=100

Index

*Provisional

Growth Rates (on Y-o-Y basis in per cent)

*Provisional.

Y-o-Y is calculated over the corresponding financial year of previous year

Annex II

Performance of Eight Core Industries

Monthly Index & Growth Rate

Base Year: 2011-12=100

Index

*Provisional

Growth Rates (on Y-o-Y basis in per cent)

*Provisional.

Y-o-Y is calculated over the corresponding financial year of previous year

A Collective Focus to Achieve Net-Zero by 2070: PE&VC Conclave on “Financing India’s Green Future”

The Bombay Chamber, under the aegis of the PE&VC Committee, successfully convened a highly insightful Conclave on the

topic, “Financing India’s Green Future.” The event, which took place in a hybrid mode, brought together industry leaders, experts,

and thought pioneers to explore sustainable and responsible approaches to financing projects with significant environmental

benefits. The Conclave addressed the pressing need for substantial investment and financing to support India’s ambitious goal of

achieving net-zero emissions by 2070.

India, as one of the world’s largest emitters of greenhouse gases, is poised to make a transformative shift toward a cleaner,

greener economy. According to a recent Reserve Bank report, India’s green financing requirement is projected to be at least 2.5

percent of its GDP annually until 2030. This commitment entails substantial investment in renewable energy and a significant

reduction in the energy intensity of GDP, approximately 5 percent annually.

Sandeep Khosla, Director General of Bombay Chamber of Commerce & Industry, welcomed the audience and emphasised the

pivotal role that green finance will play in India’s journey toward achieving net-zero emissions by 2070.

Setting the tone for the Conclave, Akalpit Gupte, Managing Director & Head Compliance at Deutsche Bank India, highlighted the

need to mobilise funds and steer policy directives toward green initiatives. He emphasised the importance of accountability and

the efficient utilisation of funds in green projects. Gupte also stressed the necessity of active regulations and industry

participation in India’s sustainability efforts.

Delivering his Keynote Address, Shri Pramod Rao, Executive Director of SEBI, acknowledged the rapid changes happening in

India, with the Government and RBI leading the way. He emphasised the importance of diverse funding sources for India’s

corporate sector and the need to provide purpose-driven financing for sustainable initiatives. He discussed SEBI’s role in

enhancing green finance through revised definitions, third-party verification processes, and enhanced disclosure mechanisms,

such as mandating Business Responsibility and Sustainability Reporting (BRSR) BRSR Core Framework for assurance and ESG

disclosures for top 1000 companies.

Giving his presentation, Amit Kumar, Partner-Climate and Energy Leader at Grant Thornton Bharat, discussed India’s long and

short-term clean energy goals, emerging investment opportunities in clean energy sectors, and key green financing initiatives.

The first panel discussion, moderated by Saurabh Kamdar, Associate Partner at KPMG India, featured industry experts Govind

Sankaranarayanan, Co-Founder & COO, Ecofy, Raman Kalra, Vice President & Senior Partner, Communications Sector Leader

& Sustainability Consulting Leader, IBM , Padmanabh (Paddy) Sinha, Executive Director & CIO-Private Equity at National

Investment and Infrastructure Fund (NIIF) and Siddharth Mayur, Founder, Managing Director & CEO, H2E Power Systems

Private Ltd. & MD, HEXIS AG, discussing funding for India’s sustainability transition, renewable energy, mobility, infrastructure,

and supply chain development. The panel explored niche and targeted green finance products, technology’s role in

decarbonisation, and digital acceleration of the transition.

A presentation on GIFT IFSCA’s evolution and its role in financing India’s Green Future was delivered by Pavan Shah, General

Manager, IFSCA.

The second panel discussion, moderated by Prerana Langa, CEO of Aga Khan Agency for Habitat India, focused on navigating

the evolving regulatory landscape in green financing. Panellists, including Shailesh Haribhakti, Jigar Shah, Manu Maudgal, and

Dr. Rambabu Paravastu, discussed carbon pricing regulations, sustainability actions, data quality improvement, and the real

world impact of sustainability initiatives. .

The Conclave concluded with a Vote of Thanks by Ashith Kampani, Chairperson of the PE&VC Committee at Bombay Chamber,

who expressed gratitude to the speakers, participants, and the Chamber for their invaluable contributions to the event.

The Bombay Chamber’s “Financing India’s Green Future” Conclave served as a platform for in-depth discussions, knowledge

sharing, and collaborative efforts to support India’s journey towards a sustainable and environmentally responsible future

In his keynote address, Shri. Ananth Narayan Gopalkrishnan, Whole-time Member, SEBI shed light on the private equity space and SEBI’s outlook towards Alternative Investment Funds (AIFs). Shri. Gopalkrishnan highlighted the impressive growth of the private equity sector over the past few years. He mentioned that AIF investment commitments reached 8.3 Lakh crores as of March 2023, showing a compounded annual growth rate of 38%. Actual money invested in AIFs demonstrated a compounded annual growth rate of 40% over the last five years, totaling 3.4 Lakh crores.

Addressing the funding landscape, Shri. Gopalkrishnan noted that commitment in the AIF space has been rising by 2 lakh crores over the past two years, with 60% of the commitment coming from domestic participants and 40% from foreign investors. The number of AIFs has also increased to 1100, showcasing a 50% annual compounded growth rate and reflecting a thriving ecosystem. He emphasised that this early-stage capital contributes to wealth creation, investments, job creation, and GDP growth.

Shri. Gopalkrishnan underscored the three pillars of SEBI’s mandate: investor protection, market development, and market regulation. He emphasised that trust forms the foundation of the entire system, and SEBI’s role is to minimise errors and build trust within the capital formation process. He highlighted the substantial growth in equity investments made by regional funds, which rose from less than 4 lakh crores to over 24.5 Lakh crores. Shri. Gopalkrishnan also emphasised three key areas on SEBI’s radar: valuation, potential regulatory arbitrage, and misselling. He reassured companies that SEBI is open to receiving details of any wrongdoing in the market and encouraged them to build trust and credibility in the ecosystem. He acknowledged India’s immense potential for growth, highlighting its entrepreneurial spirit and strong work culture.

The conclave featured two insightful panels addressing crucial aspects of the private market. The first panel of the day, moderated by Nimesh Kampani, Founding Partner, 108 Capital saw Madhu Lunawat, – CIO, India Inflection Opportunities Fund, Satyam Kumar, CEO & Co-Founder, LoanTap Financial Technologies, Ashish Fafadia, Partner, Blume Venture Advisors, and Ritwick Ghoshal, Managing Partner & CEO, Bay Capital Investment Advisors give their insight into the topic Business Opportunities, Challenges & the Future: Driving Private Investments. The panel explored the current situation of the private market in India amidst the funding winter, examined the available exit options for companies, assessed the challenges and opportunities in raising debt or equity swiftly, discussed cost of equity vs cost of debt and envisioned ways to create a systematic platform for private markets. 

The second panel, on Creating a Conducive Tax and Regulatory Environment, moderated by Rahul Shah, Executive Vice President, Indian Venture Capital Association (IVCA) saw panelists Dr Archana Hingorani, Managing Partner, Siana Capital, Tejas Desai, Partner, Ernst & Young LLP (EY India), Vatsal Gaur, Partner, King Stubb & Kasiva, Advocates & Attorneys and Manish Kumar, Co-founder GREX & RealX share their expertise on the subject. The panel covered aspects including AIF regulations, the GIFT city and the need for enabling infrastructure,  onshoring of offshore fund structures, Angel Tax and the global competitiveness of the Indian PE&VC ecosystem. 

The Conclave concluded with a vote of thanks delivered by Ashith Kampani, Chair, PE&VC Committee, and Chairman, CosmicMandala15 Securities.

Record 125 Advance Pricing Agreements Signed by CBDT in FY 2023-24

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.