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India aims to become leading aviation hub with $4 Billion MRO Industry by 2030

Union Civil Aviation Minister, Shri Kinjrapu Rammohan Naidu has announced the implementation of a uniform IGST rate of 5% on all aircraft and aircraft engine parts, effective from 15th July 2024. This decision marks a significant milestone for the domestic Maintenance, Repair, and Overhaul (MRO) industry, aimed at making India a global aviation hub.

Commenting on this development,Shri Naidu, said, “The introduction of a uniform 5% IGST rate on MRO items is a major boost for the aviation sector. Previously, the varying GST rates of 5%,12%, 18%, and 28% on aircraft components created challenges, including an inverted duty structure and GST accumulation in MRO accounts. This new policy eliminates these disparities, simplifies the tax structure, and fosters growth in the MRO sector.”

The Union Minister further emphasized the role of Prime Minister Shri Narendra Modi’s visionary leadership in making this change possible. “Under the guidance of Prime Minister Modi, we are committed to the Atma Nirbhar Bharat initiative. His support for transforming India into a leading aviation hub has been crucial in driving this policy forward,” he added.

Union Minister applauded the efforts of the Ministry of Civil Aviation,Ministry of Finance and other stakeholders who have worked diligently to achieve this policy adjustment recommended by the GST Council in its 53rd meeting on 22nd June 2024, the uniform 5% IGST rate aims to reduce operational costs, resolve tax credit issues, and attract investment.

Highlighting the future prospects, Shri Rammohan Naidu stated, “Our vision is to transform India into a leading aviation hub. The Indian MRO industry is projected to become a $4 billion industry by 2030. This policy change is a crucial step towards building a strong ecosystem for MRO services, driving innovation, and ensuring sustainable growth.”

The Ministry is confident that this move will significantly enhance the competitiveness of the Indian MRO sector, fostering innovation and efficiency, and creating a robust and efficient aviation sector.

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.

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.

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/).

“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.

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