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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.

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

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/.

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.