Investment through Indian companies in foreign is a common phenomenon and several Indian companies have a presence in foreign companies by virtue of the formation of Joint Venture (JV) and Wholly Owned Subsidiaries (WOS). In contrast, Overseas Direct Investment by Indian residents has been revised to sanction overseas investment, with adequate manacles to prevent money from siphoning into foreign companies.
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Therefore, adequate measures and regulations have been introduced and are being revised constantly to prevent any such event.
Reserve Bank of India (RBI) with effect from August 2022 has incorporated erstwhile FEMA (Transfer or Issue of Foreign Security) Regulations, 2004 and FEMA (Acquisition and Transfer of immovable property outside India) Regulation 1915 (OI Rules), which has introduced FEMA (Overseas Investment) Rules, 2022 (OI Regulation) and earlier regulations are considered superseded.
The FEMA (Overseas Investment) Directions, 2022 contains operational requirements under OI Rules and OI Regulations, including guidance regarding the interpretation, a grouping of conditions (under 3 categories, i.e., General provisions, Specific provisions, and Other operational instructions to AD banks).
In addition to that, it also contains particular compliance requirements from former ODI Master Directions and does not fall under OI rules and regulations.
With that, overseas investment in foreign is constricted unless completed in accordance with FEMA Act, OI Rules, and Regulations. This blog provides you with an overview of the latest notified and revised rules and regulations, including board amendments in RBI ODI.
India’s outbound investments have undergone a significant transformation, not only in terms of their scale but also in their geographical distribution and the sectors they target. Analyzing the trends in direct investments over the past decade reveals that while both inbound and outbound investment flows were relatively slow in the early part of the decade, they gained momentum in the latter half.
Over the last decade or so, there has been a noticeable shift in the destinations of overseas investments. In the first half, these investments were primarily focused on resource-rich nations like Australia, the United Arab Emirates (UAE), and Sudan. However, in the latter half, there was a shift towards nations offering greater tax advantages, such as Mauritius, Singapore, the British Virgin Islands, and the Netherlands.
Indian companies primarily engage in foreign investments through mergers and acquisitions (M&A). A developing country like India continually seeks opportunities to invest abroad as it contributes to the overall economy. These overseas investments by Indian companies also play a role in enhancing the performance of the country’s service and manufacturing sectors and contribute to addressing the challenge of rising unemployment rates. With the increasing M&A activity, companies gain direct access to new and broader markets, as well as advanced technologies, allowing them to expand their customer base and establish a global presence.
Overview of Amendments in RBI ODI
Investments made by individuals residing in India in foreign countries broaden the scale and range of business activities for Indian entrepreneurs. They offer global avenues for expansion, enabling easier access to technology, research and development resources, access to a broader global market, and lower capital costs. These advantages enhance the competitiveness of Indian businesses and contribute to the strengthening of their brand reputation.
Furthermore, such overseas investments serve as significant catalysts for foreign trade and the transfer of technology. This, in turn, leads to increased domestic employment, higher levels of investment, and overall economic growth through these interconnected relationships.
In alignment with the principles of liberalization and the facilitation of a more business-friendly environment, the Central Government and the Reserve Bank of India have undertaken a progressive simplification of procedures and a rationalization of rules and regulations governed by the Foreign Exchange Management Act, 1999. As a significant step in this direction, a new Overseas Investment framework has been put into operation.
The Central Government has issued the Foreign Exchange Management (Overseas Investment) Rules, 2022, through Notification No. G.S.R. 646(E) dated August 22, 2022, and the Reserve Bank of India has notified the Foreign Exchange Management (Overseas Investment) Regulations, 2022, under Notification No. FEMA 400/2022-RB dated August 22, 2022. These regulations supersede the previous Notification No. FEMA 120/2004-RB dated July 07, 2004 (Foreign Exchange Management – Transfer or Issue of any Foreign Security – Amendment – Regulations, 2004) and Notification No. FEMA 7 (R)/2015-RB dated January 21, 2016 (Foreign Exchange Management – Acquisition and Transfer of Immovable Property Outside India – Regulations, 2015).
The new framework simplifies the existing system for overseas investments by Indian residents, extending its coverage to a broader spectrum of economic activities, and substantially reducing the necessity for seeking specific approvals. This, in turn, will alleviate the burden of compliance and the associated compliance costs.
Some of the significant changes introduced by the new rules and regulations:
Improved clarity in defining various terms and concepts.
Introduction of the “strategic sector” concept.
Elimination of the need for approval in several cases, including deferred payment of consideration, investments or disinvestments by Indian residents under investigation by investigative agencies or regulatory bodies, issuance of corporate guarantees for second or subsequent level step-down subsidiaries (SDS), and write-offs related to disinvestments.
Introduction of a “Late Submission Fee (LSF)” for delays in reporting.
Permission for Initiating Overseas Investments:
An individual residing in India is allowed to make or transfer investments or financial commitments abroad under the general permission/automatic route, subject to the regulations outlined in the OI Rules, Regulations, and these guidelines. Consequently, overseas investments can be made in a foreign enterprise engaged in legitimate business activities, either directly or through second or subsequent-level step-down subsidiaries (SDS) or special-purpose vehicles (SPV).
To make the intended financial commitment, the person should complete Form FC as provided in the “Master Direction – Reporting under the Foreign Exchange Management Act, 1999,” supported by the necessary documents, and approach the designated authorized dealer (AD) bank to facilitate the investment or remittance.
In cases where approval is required, the applicant should approach their designated AD bank, which will then submit the proposal to the Reserve Bank of India (RBI) after conducting a thorough examination and providing specific recommendations. The designated AD bank, before forwarding the proposal, must submit relevant sections of Form FC in the online Overseas Investment Declaration (OID) application and include the transaction number generated by the application in their reference. The proposal should be accompanied by the following documents:
Background and brief details of the transaction.
Reason(s) for seeking approval mentioning the extant FEMA provisions.
Observations of the designated AD bank with respect to the following:
Prima facie viability of the foreign entity;
Benefits which may accrue to India through such investment;
Financial position and business track record of the Indian entity and the foreign entity;
Any other material observation.
Recommendations of the designated AD bank with confirmation that the applicant’s board resolution or resolution from an equivalent body, as applicable, for the proposed transaction(s) is in place.
Diagrammatic representation of the organisational structure indicating all the subsidiaries of the Indian entity horizontally and vertically with their stake (direct and indirect) and status (whether operating company or SPV).
Valuation certificate for the foreign entity (if applicable).
Other relevant documents properly numbered, indexed and flagged.
Mode of Payment
Regarding the method of payment for overseas investments made by an individual residing in India, the following provisions must be adhered to, as per regulation 8 of the OI Regulations. Additionally:
Pricing Guidelines
Before facilitating any transaction related to overseas investments, the Authorized Dealer (AD) bank must ensure compliance with the regulations specified in rule 16 of the OI Rules. Regarding the documents to be collected by the AD bank, they should adhere to a policy approved by their board, which should consider factors including valuation based on internationally accepted pricing methodologies. The AD bank is required to establish and implement a board-approved policy within two months from the date of issuance of these guidelines.
This policy can also address situations where valuation may not be mandatory, for instance, in cases involving transfers due to merger, amalgamation, demerger, or liquidation, where the price has been approved by a competent court or tribunal in accordance with Indian laws and/or the host jurisdiction. Another scenario could be when the price is readily available on a recognized stock exchange, and so on. The policy should also clearly specify additional documents, such as the audited financial statements of the foreign entity, which the AD banks may request to verify the legitimacy in cases where investments are being written off.
Obligations of the Person Resident in India
Reporting
All reporting related to overseas investments made by individuals residing in India should follow the guidelines specified in regulation 10 of the OI Regulations. This reporting should be done through the designated Authorized Dealer (AD) bank using the updated reporting forms and instructions outlined in the “Master Direction – Reporting under the Foreign Exchange Management Act, 1999.” The reporting forms can be downloaded from the Reserve Bank’s website at www.rbi.org.in. Any incomplete submissions will be treated as non-submissions.
Any acquisition of foreign securities resulting from the conversion of Indian Depository Receipts (IDRs) must be duly reported, either as Overseas Direct Investment (ODI) or Overseas Portfolio Investment (OPI), as applicable.
The Annual Performance Report (APR) should be certified by a chartered accountant in cases where statutory audits are not applicable, including for resident individuals. It’s important to note that in cases where APR is required to be jointly filed, one investor may be authorized by the other investors to submit the APR, or they may jointly file the report.
When a resident individual engages in overseas investments, they must adhere to the reporting requirements outlined in the OI Regulations. Additionally, reporting should also be carried out as per the Liberalized Remittance Scheme (LRS) guidelines when such investments are considered part of the LRS limit. It’s worth noting that the acquisition of foreign securities through inheritance or gift, in accordance with paragraph 2 of Schedule III of the OI Rules, is not counted against the LRS limit and, therefore, does not require reporting under the LRS.
Delay in Reporting
If an individual residing in India has experienced a delay in filing or submitting the necessary forms, returns, or documents, they have the option to file or submit these documents and pay the Late Submission Fee (LSF) through the designated Authorized Dealer (AD) bank, as specified in regulation 11 of the OI Regulations.
The Late Submission Fee (LSF) for delays in reporting transactions related to overseas investments will be calculated based on the following matrix:
Sr. No.
Type of Reporting delays
LSF Amount (INR)
1
Form ODI Part-II/ APR, FLA Returns, Form OPI, evidence of investment or any other return which does not capture flows or any other periodical reporting
7500
2
Form ODI-Part I, Form ODI-Part III, Form FC, or any other return which captures flows or returns which capture reporting of non-fund based transactions or any other transactional reporting
[7500 + (0.025% × A × n)]
Notes:
a) “n” is the number of years of delay in submission rounded-upwards to the nearest month and expressed up to 2 decimal points.
b) “A” is the amount involved in the delayed reporting.
c) LSF amount is per return.
d) Maximum LSF amount will be limited to 100 per cent of ‘A’ and will be rounded upwards to the nearest hundred.
e) Where an advice has been issued for payment of LSF and such LSF is not paid within 30 days, such advice shall be considered as null and void and any LSF received beyond this period shall not be accepted. If the applicant subsequently approaches for payment of LSF for the same delayed reporting, the date of receipt of such application shall be treated as the reference date for the purpose of calculation of LSF.
f) The option of LSF shall be available up to three years from the due date of reporting/submission under OI Regulations. The option of LSF shall also be available for delayed reporting/submissions under the Notification No. FEMA 120/2004-RB and earlier corresponding regulations, up to three years from the date of notification of OI Regulations.
g) In case a person resident in India responsible for submitting the evidence of investment or filing any forms/returns/reports, etc. as per OI Regulations/earlier corresponding regulations, neither makes such submission/filing within the specified time nor makes such submission/filing along with LSF as provided in regulation 11 of OI Regulations, such person shall be liable for penal action under the provisions of FEMA, 1999.
(3) The LSF may be paid by way of a demand draft drawn in favour of “Reserve Bank of India” and payable at the Regional Office concerned (in accordance with UIN mapping given in the table below).
Sr.No
UIN with prefix
UIN mapped to
1.
AH
RO Ahmedabad
2.
BG
RO Bengaluru
3.
BL or BY or PJ
RO Mumbai
4.
BN or CA or GA or GH
RO Kolkata
5.
CG or JM or JR or KA or ND or PT or WR
RO New Delhi
6.
HY
RO Hyderabad
7.
KO or MA
RO Chennai
Restrictions and prohibitions
Authorized Dealer (AD) banks are prohibited from facilitating transactions involving any foreign entity engaged in activities mentioned in rule 19(1) of the Overseas Investment (OI) Rules or located in countries/jurisdictions as advised by the Central Government under rule 9(2) of the OI Rules. It’s important to clarify that financial products linked to the Indian Rupee include non-deliverable trades related to foreign currency-INR exchange rates, as well as stock indices connected to the Indian market, among other things.
Individuals residing in India are not allowed to make financial commitments to a foreign entity that has invested or plans to invest in India at the time of such commitment or at any time thereafter, either directly or indirectly, resulting in a structure with more than two layers of subsidiaries. This restriction is in accordance with rule 19(3) of the OI Rules. It’s also specified that no additional layer of subsidiaries should be added to any structure that already has two or more layers of subsidiaries after the notification of the OI Rules/Regulations.
Please note that the term “subsidiary” is defined as an entity in which the foreign entity has control, which includes a stake of 10% or more in an entity, as per the OI Rules.
Financial commitment by an Indian entity
An Indian entity, subject to the overall limit specified in Schedule I of the Overseas Investment (OI) Rules and in compliance with Regulation 3 of the OI Regulations, is permitted to make financial commitments through Overseas Direct Investment (ODI) as outlined in Schedule I of the OI Rules, financial commitments through debt in accordance with Regulation 4 of the OI Regulations, and non-fund-based financial commitments in line with Regulations 5, 6, and 7 of the OI Regulations. Furthermore:
In cases of security swaps, both legs of the transaction must adhere to the provisions of the Foreign Exchange Management Act (FEMA), as applicable.
When a registered Partnership firm from India invests in a foreign entity, it is acceptable for individual partners to hold shares on behalf of the firm in the foreign entity, provided that the host country’s regulations or operational requirements necessitate such holdings.
Financial commitments through debt [Regulation 4 of the OI Regulations] – Authorized Dealer (AD) banks are authorized to facilitate outward remittances for financial commitments through debt only after obtaining the necessary agreements/documents to ensure the legitimacy of the transaction. An Indian entity is not allowed to lend directly to its overseas second or subsequent-level step-down subsidiary (SDS). Additionally, a resident individual cannot make financial commitments through debt.
Regarding financial commitments through Guarantees [Regulation 5 of the OI Regulations]:
In the case of performance guarantees, the specified time for contract completion is considered the validity period of the guarantee.
No prior approval from the Reserve Bank of India is required for remitting funds from India due to the invocation of a performance guarantee extended in accordance with OI Rules/Regulations.
Any guarantee, up to the amount invoked, will no longer be considered part of the non-fund-based financial commitment but will be categorized as a financial commitment through debt. The invocation of such guarantees must be reported in Form FC.
The roll-over of guarantees is not regarded as a new financial commitment. However, such roll-overs should be reported in Form FC.
A group company of the Indian entity may provide a guarantee in compliance with the OI Regulations if it is eligible to make ODI as per the OI Rules. Such a guarantee will count towards the utilization of the financial commitment limit of the group company and must be reported by the respective group company. In the case of a resident individual promoter, this guarantee will be counted towards the financial commitment limit of the Indian entity and reported accordingly. The concept of utilizing the net worth of the subsidiary/holding company by the Indian entity is no longer applicable. Additionally, when computing the financial commitment limit of the group company, any fund-based exposure of the group company to the Indian entity or of the Indian entity to the group company should be subtracted from the net worth of the group company.
The provisions related to financial commitments through pledge/charge [Regulation 6 of the OI Regulations] are summarized below:
Security by Indian entity
In whose favour
Facility availed
Amount reckoned towards financial commitment
A) Pledge the equity capital of the foreign entity /its SDS outside India.
AD bank or a public financial institution in India or an overseas lender.
Fund/non-fund based facilities for Indian entity.
Nil.
Fund/non-fund based facilities for any foreign entity/its SDSs outside India.
The value of the pledge or the amount of the facility, whichever is less.
A debenture trustee registered with SEBI in India.
Fund based facilities for Indian entity.
Nil.
B) Create charge on its assets (other than A above) in India [including the assets of its group company or associate company, promoter and / or director].
AD bank or a public financial institution in India or an overseas lender.
Fund/non-fund based facility for any foreign entity/its SDS outside India
The value of charge or the amount of the facility, whichever is less
Overseas or Indian lender.
Fund/non-fund based facilities for Indian entity.
Nil.
C) Create charge on the assets outside India of the foreign entity/ its SDS outside India.
An AD bank in India or a public financial institution in India.
Fund/non-fund based facility for any foreign entity/its SDS outside India.
The value of the charge or the amount of the facility, whichever is less.
Fund/non-fund based facility for Indian entity.
Nil.
A debenture trustee registered with SEBI in India.
Fund based facilities for Indian entity.
Nil
6. Financial commitments through pledges or charges must adhere to the following conditions:
The value of the pledge or charge, or the amount of the facility, whichever is less, will be considered against the financial commitment limit, provided that such a facility has not already been counted towards the prescribed limit.
The overseas lender for whom the pledge or charge is created must not be from a country or jurisdiction where financial commitments are not permitted under the Overseas Investment (OI) Rules.
The creation and enforcement of such pledges or charges must comply with the relevant provisions of the Foreign Exchange Management Act (FEMA) or the rules, regulations, or directions issued under FEMA.
The assets on which the charge is created must not be securitized.
If the duration of the charge is not specified upfront, it should align with the period of the facility (e.g., a loan or other financial facility) for which the charge has been established.
In case of the enforcement of a charge created on domestic assets, those domestic assets should only be transferred through a sale to a person residing in India.
When creating a pledge involving shares of an Indian company in favor of an overseas lender, the pledge should also comply with the existing FEMA provisions as outlined in the FEMA (Non-Debt Instruments) Rules, 2019.
(7) The provisions regarding Overseas Direct Investment (ODI) in financial services activities [as per paragraph 2 of Schedule I and paragraph 2 of Schedule V of the OI Rules] are summarized as follows:
Indian entity
ODI in foreign entity
Subject to the financial commitment limit, reporting and documentation as per the OI Rules/Regulations and other applicable provisions as under
a) Engaged in Financial Services activity
Engaged in Financial Services activity
Subject to the provisions contained in paragraph 2(1) of schedule I of the OI Rules. Where such investment is in IFSC, the requisite approval by the financial services regulator concerned shall be decided within 45 days from the date of receipt of application complete in all respects failing which it shall be deemed to be approved
Not engaged in Financial Services activity
Subject to the guidelines issued by the respective regulator
b) Not engaged in Financial Services activity
Engaged in Financial Services activity except banking or insurance
Indian entity has posted net profits during the preceding three financial years. However, an Indian entity not meeting 3-year profitability condition may make such ODI in a foreign entity in IFSC in India.
Engaged in general and health insurance
Apart from the 3 years profitability criteria, such insurance business is supporting the core activity undertaken overseas by such Indian entity. For instance, health insurance to support medical/hospital business, vehicle insurance to support the manufacturing/export of motor vehicles, etc.
c) Overseas investment in any sector by banks and non-banking financial institutions regulated by the Reserve Bank shall be subject to such other conditions as may be stipulated by the regulatory department concerned of the Reserve Bank in this regard.
d) A foreign entity will be considered to be engaged in the business of financial services activity if it undertakes an activity, which if carried out by an entity in India, requires registration with or is regulated by a financial sector regulator in India.
d) A foreign entity will be considered to be engaged in the business of financial services activity if it undertakes an activity, which if carried out by an entity in India, requires registration with or is regulated by a financial sector regulator in India.
(8) The limit on financial commitments is determined by paragraph 3 of Schedule I of the Overseas Investment (OI) Rules. Additionally:
The utilization of funds held in the Exchange Earners’ Foreign Currency (EEFC) account, as well as the amount obtained through the issuance of American Depository Receipts (ADR) or Global Depositary Receipts (GDR) and ADR/GDR stock-swap for making financial commitments, will be considered within the financial commitment limit. However, financial commitments made through these resources prior to the date of notification of the OI Rules/Regulations will not be counted towards the limit.
When the proceeds from External Commercial Borrowings (ECB) are used to make financial commitments, this utilization will be counted towards the financial commitment limit. However, only the portion of the ECB that exceeds the amount corresponding to the pledge or creation of a charge on assets, which has already been included in the financial commitment limit, will be counted.
Overseas investment by resident individuals
With effect from August 05, 2013, resident individuals (either individually or in conjunction with another resident individual or with an Indian entity) were granted the ability to engage in Overseas Direct Investment (ODI). A resident individual can make overseas investments following the guidelines provided in Schedule III of the Overseas Investment (OI) Rules. Additionally:
(1) If a resident individual has made an ODI without control in a foreign entity, and that foreign entity subsequently acquires or establishes a subsidiary or second or subsequent-level step-down subsidiary (SDS), the resident individual is not permitted to gain control in that foreign entity.
(2) Overseas investments involving capitalization, securities swaps, rights/bonus issues, gifts, and inheritances will be categorized as ODI or Overseas Portfolio Investment (OPI) based on the nature of the investment. However, investments, whether in listed or unlisted entities, through sweat equity shares, minimum qualification shares, and shares/interest under Employee Stock Ownership Plans (ESOP) or Employee Benefits Schemes, which do not exceed 10% of the foreign entity’s paid-up capital/stock and do not lead to control, will be categorized as OPI.
(3) In the case of security swaps, both legs of the transaction must comply with the provisions of the Foreign Exchange Management Act (FEMA), as applicable. If a security swap results in the acquisition of equity capital that does not conform to the OI Rules/Regulations (e.g., ODI in a foreign entity engaged in financial services activities or a foreign entity with a subsidiary/SDS), such equity capital must be divested within six months from the date of acquisition.
(4) Resident individuals are not permitted to transfer any overseas investments as gifts to individuals residing outside India.
(5) Shares/interest acquired under ESOP/Employee Benefits Schemes – Authorized Dealer (AD) banks may allow remittances for acquiring shares/interest in an overseas entity under schemes offered directly by the issuing entity or indirectly through a Special Purpose Vehicle (SPV) or SDS. If the investment qualifies as OPI, the employer must report it in Form OPI as per Regulation 10(3) of the OI Regulations. If the investment qualifies as ODI, the resident individual must report the transaction in Form FC.
(6) Foreign entities are allowed to repurchase shares issued to residents in India under any ESOP Scheme, provided that
(i) the shares were issued in compliance with the rules/regulations under FEMA, 1999,
(ii) the repurchase follows the terms of the initial offer document, and
(iii) the necessary reporting is conducted through the AD bank.
(7) While there is no specific limit on the amount of remittance made for the acquisition of shares/interest under ESOP/Employee Benefits Schemes or the acquisition of sweat equity shares, such remittances will count towards the Liberalized Remittance Scheme (LRS) limit of the individual concerned.
Overseas investment by a person resident in India, other than an Indian entity or a resident individual
A person residing in India, who is not an Indian entity or a resident individual, can engage in overseas investment in accordance with Schedule IV of the Overseas Investment (OI) Rules. Additionally:
(1) Mutual Funds (MFs) and Venture Capital Funds (VCFs)/Alternative Investment Funds (AIFs) registered with the Securities and Exchange Board of India (SEBI) may invest overseas in securities as specified by SEBI within an overall cap of USD 7 billion and USD 1.5 billion, respectively, as outlined in paragraph 2 of Schedule IV of the OI Rules. Furthermore, a limited number of eligible MFs are permitted to invest cumulatively up to USD 1 billion in overseas Exchange Traded Funds (ETFs), subject to SEBI’s approval. These investments shall be classified as Overseas Portfolio Investment (OPI), regardless of whether the securities are listed or not.
(2) MFs/VCFs/AIFs interested in availing this facility should approach SEBI for the necessary permissions. The operational details regarding eligibility criteria, individual limits, identification of recognized stock exchanges, the investible universe, monitoring of aggregate ceilings, etc., will be in accordance with the guidelines issued by SEBI. General permission is granted to these investors for selling the securities they acquire.
(3) An Authorized Dealer (AD) bank, including its overseas branch, may acquire or transfer foreign securities in accordance with the regulations and laws of the host country in the normal course of its banking business. The provisions in the OI Rules/Regulations do not apply to such acquisition or transfer of foreign securities by an AD bank.
(4) A bank in India, licensed by the Reserve Bank of India under the Banking Regulation Act, 1949, may acquire shares of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) in line with SWIFT’s by-laws. This is permissible provided the bank has received permission from the Reserve Bank to join the ‘SWIFT User’s Group in India’ as a member.
(5) Any overseas investment made by a sole proprietorship or an unregistered partnership firm can be carried out by the proprietor or the individual partners within their limits under the Liberalized Remittance Scheme (LRS) as per Schedule III of the OI Rules. If the proposed investment is in a strategic sector, any application for an overseas investment exceeding the LRS limit should be made under the government approval route.
(6) Overseas investments by registered trusts and societies may be made under the approval route, in accordance with paragraph 1 of Schedule IV of the OI Rules.
Overseas investment in an IFSC in India by a person resident in India
A person residing in India can engage in overseas investment within an International Financial Services Centre (IFSC) in India in accordance with Schedule V of the Overseas Investment (OI) Rules. Here are some additional details:
A person residing in India, whether it’s an Indian entity or a resident individual, can make investments (including sponsor contributions) in the units of an investment fund or vehicle established in an IFSC as Overseas Portfolio Investment (OPI). This means that, in addition to listed Indian companies and resident individuals, unlisted Indian entities can also make such investments within an IFSC.
The restriction on making Overseas Direct Investment (ODI) only in an operating foreign entity or not making ODI in a foreign entity engaged in financial services activities by resident individuals does not apply to investments made within an IFSC. However, such investments should not be made in any foreign entity engaged in banking or insurance. Such foreign entities in IFSC may have subsidiaries or second or subsequent-level step-down subsidiaries (SDS) in IFSC. They may also have subsidiaries or SDS outside IFSC where the resident individual does not have control over the foreign entity. A resident individual who has made ODI without control is not allowed to gain control in a foreign entity that subsequently establishes or acquires a subsidiary/SDS outside India.
Acquisition or Transfer of Immovable Property outside India
The acquisition or transfer of immovable property outside India is subject to the provisions outlined in Rule 21 of the Overseas Investment (OI) Rules. Additionally:
An Authorized Dealer (AD) bank may permit an Indian entity with an overseas office to acquire immovable property outside India for the business and residential purposes of its staff. This is permissible as long as the total remittances do not exceed the following limits, which are specified for both initial and recurring expenses:
15% of the average annual sales, income, or turnover of the Indian entity over the last two financial years or up to 25% of the net worth, whichever is higher.
10% of the average annual sales, income, or turnover over the last two financial years.
Conclusion
In conclusion, overseas investments made by Indian residents play a crucial role in expanding the scale and scope of business activities for Indian entrepreneurs. These investments provide access to global opportunities for growth by facilitating technology transfer, research and development, access to wider markets, and reducing capital costs. They enhance the competitiveness of Indian entities and boost their brand value. Additionally, overseas investments contribute to foreign trade, technology transfer, domestic employment, increased investment, and overall global economic growth. The Hon’ble Prime Minister of India, Shri Narendra Modi is also promoting, “One Family. One Future. One Earth.”.
To support and facilitate overseas investments, the Central Government and the Reserve Bank of India have simplified procedures and rationalized rules and regulations under the Foreign Exchange Management Act, 1999. This effort has led to the operationalization of a new Overseas Investment regime, represented by the Foreign Exchange Management (Overseas Investment) Rules, 2022, and the Foreign Exchange Management (Overseas Investment) Regulations, 2022.
These regulations introduce several significant changes to the existing framework, including improved clarity in definitions, the introduction of the concept of “strategic sector,” the removal of the requirement for approval in specific cases, and the introduction of a “Late Submission Fee (LSF)” for reporting delays. These changes aim to reduce the compliance burden and associated costs, making overseas investments more accessible and efficient for Indian residents.
Overall, the regulatory amendments are designed to foster ease of doing business and promote overseas investments while ensuring proper oversight and compliance with FEMA Act, OI Rules, and Regulations. The revised framework supports Indian entrepreneurs in harnessing global opportunities and contributes to their success on the international stage.
According to the vision outlined by Prime Minister Modi, India is making significant strides towards achieving a $5 trillion economy by 2024-25. Under his leadership, the economic recovery in the country continues to have a positive impact on employment situation in New India, thanks to the multiplier effect.
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Furthermore, the Budget for 2023-24 has injected strong momentum into economic growth with a substantial 33% increase in the country’s capital investment, now totaling Rs 10 lakh crores. This boost in capital investment is poised to not only stimulate economic activities but also enhance employment prospects across the nation.
The surge in employment opportunities in India is evident through various indicators, including increased job enrollments in the organized sector, a growing number of registered companies, the proliferation of startups, and the emergence of numerous Unicorns in the country. This expansion of employment opportunities extends to new sectors like AI, cloud computing, data analytics, automation, and more.
The employment situation in New India is constantly evolving, and the employment situation in 2023 has witnessed significant transformations.
Current Employment Situation in India 2023 | Current Employment Situation in India
According to the Economic Survey released in January 2023, the Indian economy’s GDP is projected to experience growth in the range of 6% to 6.8% during the fiscal year 2023-24. This projection is based on the evolving economic conditions and global political developments.
The Indian economy’s growth is primarily being driven by private consumption, capital formation, and capital investment. This positive momentum has led to increased employment opportunities and a reduction in urban unemployment rates, along with higher registrations in the Employee Provident Fund.
Additionally, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has played a crucial role in providing direct employment in rural areas, while also creating indirect job opportunities for rural households to diversify their income sources.
The recent consumer confidence survey conducted by the Reserve Bank of India (RBI) in October 2023 (results of September 2023) reflects improved contemporary and future employment and income conditions.
The highlights of the Consumer Confidence Survey are as follows –
In September 2023, the Current Situation Index (CSI) achieved its highest level in four years, primarily due to survey participants expressing more positive evaluations of the current state of the overall economy and employment conditions.
Anticipations regarding the overall economic outlook, employment opportunities, income, and spending are set to continue their positive trajectory in the coming year. The Future Expectations Index (FEI) likewise achieved its highest point in four years during the most recent survey round.
Households maintain a strong sense of optimism about their future earnings, even though their current earnings sentiment has remained relatively stable at the levels observed in July 2023.
The employment rate in the country has shown growth during the current fiscal year, as supported by both official and unofficial sources. The Periodic Labour Force Survey (PLFS) indicates an increase from 50.7% in 2017-18 to 60.8% in 2022-23, whereas in urban areas, it increased from 47.6% to 50.4%. The LFPR for males in India increased from 75.8% in 2017-18 to 78.5% in 2022-23, while the corresponding increase in LFPR for females went from 23.3% to 37.0%. Moreover, the Labor Force Participation Rate (LFPR) has improved, indicating a positive trajectory for the Indian economy despite the initial pandemic-induced slowdown in early FY 2023.
According to the Overview of the Union Budget for the fiscal year 2023-24, increased investments in infrastructure and enhancing productive capacity have a substantial multiplier effect on both economic growth and employment. Furthermore, the government plans to set upto 100 laboratories within engineering institutions to focus on developing applications utilizing 5G services. This initiative aims to tap into a wide array of new opportunities, business models, and, importantly, employment prospects. These laboratories will encompass areas such as smart classrooms, precision farming, intelligent transport systems, and healthcare applications.
Significant aspects revealing Employment Situation of the Country:
1. Increase in EPFO Subscription
As on October 2023, 498058 total EPFO registration has been done and as on April 2023, the total new subscriber during March 2023 accounted to be 7,57,792, out of which, 5,67,149 were males and 1,90,630 were females. The newly joined members belong from the age of 18-21 years comprising 2,34,720, followed by the 22-25 years age group comprising 1,94,216.
In May 2023, 10,08,693 members have rejoined the EPFO membership, showing a significant increase compared to the previous year. These members have commutated their jobs and rejoined the establishments covered under EPFO and opted to transfer their accumulations rather than applying for final settlements. Therefore, extending the scope of social security protection.
2. QES Indicates the Surge in Employment
A “quarterly bulletin” refers to a periodic publication or report issued by an organization, such as a government agency, central bank, or a company, that provides information, analysis, and estimates about various economic, financial, or other relevant indicators for a specific quarter or three-month period. The term “estimates” in the context of a quarterly bulletin typically pertains to projections, forecasts, or assessments made by the organization regarding trends, statistics, or other data for the upcoming quarter or future periods. These estimates can include economic growth forecasts, inflation predictions, employment figures, trade balances, and more, which are essential for stakeholders, policymakers, and the public to understand and make informed decisions.
The current Quarterly Bulletin (published by National Sample Survey Office) is the 18th in the series for the quarter January–June 2023. The significant finding of the QES is –
Survey period
Male
Female
Person
(1)
(2)
(3)
(4)
April – June 2022
73.5
20.9
47.5
July – September 2022
73.4
21.7
47.9
October – December 2022
73.3
22.3
48.2
January – March 2023
73.5
22.7
48.5
April – June 2023
73.5
23.2
48.8
Source: National Sample Survey Office
Key Findings of PLFS, Quarterly Bulletin (April –June2023) –
A.Increasing Trend in Labour Force Participation Rate (LFPR)
The “Labor Force Participation Rate,” often referred to as the “Worker Population Ratio,” is a statistical measure that calculates the percentage of the working-age population (typically those aged 16 to 64 or 15 to 64, depending on the country’s definition) that is either employed or actively seeking employment. It is used to assess the proportion of people within a specific age group who are engaged in the labor force, which includes those who have jobs or are actively looking for work. This ratio is a key indicator in labor market analysis and provides insights into the economic participation of a particular demographic group within a given region or country
B. Increasing Trend in Worker Population Ratio (WPR)
WPR (in percent) in CWS in urban areas for persons of age 15 years and above –
Survey period
Male
Female
Person
(1)
(2)
(3)
(4)
April – June 2022
68.3
18.9
43.9
July – September 2022
68.6
19.7
44.5
October – December 2022
68.6
20.2
44.7
January – March 2023
69.1
20.6
45.2
April – June 2023
69.2
21.1
45.5
Source: National Sample Survey Office
C. Decreasing Trend in Unemployment Rate (UR)
The “Unemployment Rate” is a widely used economic indicator that measures the percentage of the labor force that is currently without a job and actively seeking employment. It is typically calculated by dividing the number of unemployed individuals by the total labor force (the sum of employed and unemployed individuals). This rate serves as a critical measure of the health of an economy and its labor market. A higher unemployment rate often indicates economic challenges, while a lower rate suggests a more robust job market. Economists and policymakers closely monitor the unemployment rate to gauge the overall economic conditions and labor force dynamics in a specific region or country.
UR (in per cent) in CWS in urban areas for persons of age 15 years and above –
survey period
Male
Female
Person
(1)
(2)
(3)
(4)
April – June 2022
7.1
9.5
7.6
July – September 2022
6.6
9.4
7.2
October – December 2022
6.5
9.6
7.2
January – March 2023
6.0
9.2
6.8
April – June 2023
5.9
9.1
6.6
Source: National Sample Survey Office
3. Production Linked Incentive Schemes (PLI)
The Production Linked Incentive Schemes have been introduced by the Government of India in order to enhance production and economic growth, hence, increasing in employment of the country. As of June 2023, the value addition of 20% has been recorded in mobile manufacturing within the duration of 3 years.
Till March 2023, the actual investment of Rs. 62,500 crores has led to increased production or sales of above Rs. 6.75 lakh crores. This has resulted in the employment generation of about 3,25,000.
In FY 2022-23, about Rs 29000 crore has been disbursed under PLI schemes for 8 sectors, i.e.,
Large-Scale Electronics Manufacturing (LSEM),
IT Hardware,
Bulk Drugs,
Medical Devices,
Pharmaceuticals,
Telecom & Networking Products,
Food Processing,
Drones & Drone Components.
All the sectors approved and designated within the PLI (Production-Linked Incentive) Schemes adhere to a comprehensive set of criteria that emphasize prioritizing essential technologies in which India can make significant advancements, leading to increased employment opportunities, higher exports, and broader economic advantages for the country. These sectors received approval after rigorous assessment by NITI Aayog and extensive discussions with relevant Ministries and Departments. As of the current date, there have been no proposals approved by the Union Cabinet to introduce additional sectors into the PLI Schemes.
These sectors are (i) Mobile Manufacturing and Specified Electronic Components, (ii) Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (iii) Manufacturing of Medical Devices (iv) Automobiles and Auto Components, (v) Pharmaceuticals Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii) Electronic/Technology Products, (ix) White Goods (ACs and LEDs), (x) Food Products, (xi) Textile Products: MMF segment and technical textiles, (xii) High efficiency solar PV modules, (xiii) Advanced Chemistry Cell (ACC) Battery, and (xiv) Drones and Drone Components.
The Indian Government’s Production Linked Incentive (PLI) Schemes aim to stimulate production, economic growth, and employment. By June 2023, a 20% value addition in mobile manufacturing has been achieved. Investments of Rs. 62,500 crores till March 2023 have led to over Rs. 6.75 lakh crores in production and the creation of approximately 3,25,000 jobs across 8 sectors. These sectors were chosen after thorough assessments by NITI Aayog and relevant Ministries, and there have been no new additions to the PLI Schemes as of the current date. In summary, the PLI Schemes are driving economic growth and job opportunities in India.
4. CAPEX (Capital Expenditure) to Increase Employment
In order to further boost the positive feedback loop of investment and job creation, the budget has taken the initiative once more by significantly raising the capital expenditure allocation. The budget for the fiscal year 2023-24 has witnessed a substantial increase of 37.4%, amounting to a staggering Rs. 10 lakh crore, compared to the Rs. 7.28 lakh crore in the Revised Estimates for 2022-23.
a. Capital Investment as a driver of growth and jobs
To stimulate investments and create jobs, the 2023-24 budget is increasing spending on big projects by 37.4%. They plan to allocate 10 lakh crore rupees, a big jump from the 7.28 lakh crore rupees spent in the previous year.
b. Startup Ecosystem
The Start-up India initiative launched on January 16, 2016, which includes 16 Action Points act as a guiding force for this initiative. The pre-eminent agenda behind the introduction of this initiative was to empower startups to grow with the assistance of technology and design.
Moreover, the scope of this initiative is not limited to startups, but it also has a catalytic effect on the Indian startup ecosystem and accelerates Indian entrepreneurs to build innovative solutions to fulfill domestic and global needs.
Apart from that, distinct measures have been taken under the Startup India initiative to transform India into a country of “job creators” rather than a county of “job seekers.”
India has emerged as the 3rd largest startup ecosystem globally in April 2023, containing over 115,064 DPIIT-recognized startups as on November 2023. India ranks in the 2nd position in innovation quality, holding the top position in terms of quality of scientific publications and quality of universities among other middle-class economies. Moreover, it is to be noted that innovation in India is not restricted to certain sectors, but it is being recognized that Indian startups have successfully resolved the issues of 56 diversified sectors. In FY 2023 (Q1 to Q3), Indian startups raised $7 billion fundings.
In addition to that, in the past few years, India’s startup ecosystem has reflected tremendous growth (2019-2022 till date) –
Total funding of startups has increased by 15X.
The number of investors has increased by 9X.
The number of incubators has increased by 7X.
The Indian unicorns(a term used to describe a privately owned startup company with a valuation of over $1 billion) are also flourishing in a fast-paced manner since these startups are not only developing or proposing innovative solutions and advanced technologies but are also contributing to the employment generation at a large scale. As of October 2023, India had a total of 1,12718 unicorns accounting for a valuation of $349.67 billion.
c. Aviation Sector
In accordance with the UDAN scheme, a target has been set to establish at least 100 airports or heliports, or waterdromes by FY 2024. As of January 31, 2023, a total of 73 airports, including 9 heliports and 2 water aerodromes, that were previously unserved or underserved have been made operational through the UDAN scheme since 2017. It’s important to note that the UDAN scheme is an ongoing initiative, with periodic bidding rounds aimed at expanding its coverage to include additional destinations, stations, and routes.
This growth in the aviation sector will result in an increase in the demand for a more trained workforce such as pilots, cabin crew, aircraft maintenance engineers, airport professionals, and IT and support service professionals.
Therefore, it will improve the employment situation in new India, while contributing to economic growth.
d. Make in India
Make in India, is an initiative launched in September 2014 by the government of India to facilitate investment, stimulate innovation, and build the best-in-class manufacturing infrastructure with the purpose to promote ease of doing business and enhance the development of skills.
Furthermore, “Make in India” also seeks a creative environment for investment, and advanced and efficient infrastructure, including the establishment of new sectors to lure foreign investments and forging a partnership between government and industry.
In simpler words, it is a solitary “Vocal for Local” approach introduced with the purpose to promote manufacturing in India to maximize the economic growth of the country but also to provide employment opportunities for our young labor force.
e. Banking Sector
India has seen steady growth in the number of branches of banks, which has a direct correlation with the increase in employment.
The provided data shows a positive trend in the current employment situation in India 2023, certainly improved if compared to the current employment situation in India 2023. From growth in bank branches to initiatives such as Startup India/ Make in India, India’s economy is reflecting growth in the rate of employment.
Significant Schemes/ Sectors Contributing in Employment Generation
Certainly, India’s diverse economic sectors have been instrumental in employment generation, contributing significantly to the country’s job market. The “Digital India” initiative has propelled growth in the information technology and services sector, creating a multitude of job opportunities in software development, cybersecurity, and digital marketing.
“Skill India” has been instrumental in upskilling the workforce and fostering employment situation in New India across various sectors by providing training in industries like manufacturing, healthcare, and retail. India is now prioritizing substantial investments in the skill development of its youth like never before. One of the schemes under “Skill India” – Pradhan Mantri Kaushal Vikas Yojana, which has significantly empowered the nation’s young talent at the grassroots level. As part of this program, the Hon’ble Prime Minister revealed that approximately 1.5 crore young individuals have undergone skill training to date. Furthermore, new skill centers will be established in close proximity to industrial hubs, enabling seamless collaboration between industries and skill development institutes. This collaborative approach aims to equip the youth with the necessary skills required for improved employment situation in New India.
Artificial Intelligence (AI) is driving the growth of data science and AI-related jobs, offering opportunities in machine learning, data analysis, and automation. Robotics, including medical robotics, is reshaping industries and employment. In manufacturing, robots improve efficiency, creating jobs for engineers and technicians. Medical robotics enhances healthcare, requiring skilled professionals for operation. Research and development in robotics demand engineers and AI experts. Service and social robots, from customer service to education, open opportunities in maintenance and programming. Robotics contributes to employment across diverse sectors, from healthcare to research and service industries.
The agriculture sector, on the other hand, continues to be a significant source of employment for millions of farmers, laborers, and agribusiness professionals, especially in rural areas. India’s agriculture sector plays an important role in the world economy and is the fundamental source of occupation for around 60% of the rural population. The country comprises 2nd largest agriculture land globally employing over half of country’s population.
The renewable energy sector has not only contributed to sustainable energy solutions but also created jobs in solar panel manufacturing, wind turbine maintenance, and research in green technologies. In the pharmaceutical and healthcare sector, research, drug manufacturing, and healthcare services have led to job opportunities for scientists, pharmacists, doctors, and healthcare professionals. Currently, Green Hydrogen production in the country is in the research and development (R&D) and pilot phases, resulting in limited foreign currency savings and employment situation in New India. However, the National Green Hydrogen Mission sets ambitious objectives, aiming to achieve savings of approximately Rs 1 lakh crore through reduced imports and the creation of around 6 lakh jobs by the year 2030. As per the ‘Renewable Energy and Jobs Annual Review 2022’ by the International Renewable Energy Agency (IRENA), the biogas sector in India contributed to the creation of 85,000 jobs.
E-commerce and the tech industry have given rise to jobs in logistics, online retail, app development, and customer service. The financial technology (FinTech) sector is fostering employment in financial services, including digital banking, payment processing, and financial analytics. Space exploration and satellite technology have opened avenues for engineers, scientists, and space professionals.
The biotechnology and telemedicine sectors, catalyzed by the COVID-19 pandemic, have created jobs in research, vaccine production, and telehealth services, enhancing the healthcare industry and generating employment situation in New India for healthcare workers and technology specialists.
These sectors represent a vast spectrum of job opportunities, ranging from highly technical and specialized roles to labor-intensive positions, collectively contributing to employment generation and the economic advancement of India.
Measures to Increase Employment in India
Employment Generation Schemes/ Programmes of the Government of India
Sr. No.
Name of the Scheme/ Programme
Ministry
About Scheme
1
Atmanirbhar Bharat Rojgar Yojana (ABRY)
Ministry of Labour and Employment
The scheme was launched in October 1st, 2020 as part of Atmanirbhar Bharat Package 3.0 with the objective to incentivize employers to generate new employment along with social security benefits and restoration of loss of employment during the Covid-19 pandemic.
The portal has been introduced to transform the National Employment Service in order to provide distinct career-related services like job matching, career counseling, vocational guidance, information on skill development courses, apprenticeships, internships, etc. It includes three significant components – NCS Portal (www.ncs.gov.in); Model Career Centres; and Interlinking of Employment Exchanges.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
Ministry of Rural Development
MGNREGA is projected to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
Pt. Deen Dayal Upadhyaya Grameen Kaushlya Yojana (DDU-GKY)
Ministry of Rural Development
DDU-GKY is a placement-linked skill development program launched for rural poor youth (covering the age group of 15-35 years) under the National Rural Livelihoods Mission (NRLM) in September 2014.
PM SVANidhi Scheme was launched on June 01, 2020, to offer collateral-free working capital loans to Street Vendors, vending in urban areas, to resume their businesses which were adversely affected due to the COVID-19-induced lockdown.
Prime Minister’s Employment Generation Programme (PMEGP)
Ministry of Micro, Small & Medium Enterprises
PMEGP which is a major credit-linked subsidy programme targets to generate self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
Ministry of Skill Development and Entrepreneurship
NAPS was launched in August 2016 to promote the Apprenticeship in India by providing financial incentives, technology and advocacy support. The scheme has the following two components – Sharing of 25% of prescribed stipend subject to a maximum of Rs. 1500/- per month per apprentice with the employers and Sharing of basic training cost up to a maximum of Rs. 7,500 per apprentice.
Production Linked Incentive (PLI) Schemes has been announced by Hon’ble Finance Minister, Smt Nirmala Sitharaman with an outlay of INR 1.97 Lakh Crores across 14 key sectors with the motto to create national manufacturing champions and to create 60 lakh new jobs, and an additional production of 30 lakh crore during next 5 years.
it is a flagship programme of the Government of India introduced with a vision to transform India into a digitally empowered society and knowledge economy.
Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
Ministry of Housing and Urban Affairs
The AMRUT mission was been introduced with the mission to provide basic services (e.g. water supply, sewerage, urban transport) to households and build amenities in cities to improve the quality of life for all, especially the poor and the disadvantaged is a national priority.
‘Make in India’ initiative was launched on September 25, 2014 to facilitate investment, boost innovation, building best in class manufacturing infrastructure, ease of doing business and improving skill development.
The primary motive of the Mission is to promote cities that provide core infrastructure, clean and sustainable environment and give a decent quality of life to their citizens through the application of ‘smart solutions’.
SPMRM follows the vision of Development of a cluster of villages that conserves and nurture the essence of rural community life emphasizing on equity and inclusiveness without compromising with the facilities perceived to be essentially urban in nature.
To coordinate the development of the industrial corridors, with smart cities linked to transport connectivity, drive India’s growth in manufacturing and urbanization.
Department of Financial Services, Ministry of Finance):
It is a Scheme for financing SC/ST and/or Women Entrepreneurs with the motto to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
It is a flagship initiative of the Government of India, intended to catalyse startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
It is a flagship Mission of Government of India being implemented by Ministry of Housing and Urban Affairs (MoHUA), was launched on 25th June 2015. Its mission is to address urban housing shortage among the EWS/LIG and MIG categories including the slum dwellers by ensuring a pucca house to all eligible urban households by the year 2022, when Nation completes 75 years of its Independence. PMAY(U) adopts a demand driven approach wherein the Housing shortage is decided based on demand assessment by States/Union Territories.
To accelerate the efforts to achieve universal sanitation coverage and to put the focus on sanitation, the Prime Minister of India had launched the Swachh Bharat Mission on 2nd October 2014. Under the mission, all villages, Gram Panchayats, Districts, States and Union Territories in India declared themselves “open-defecation free” (ODF) by 2 October 2019, the 150th birth anniversary of Mahatma Gandhi, by constructing over 100 million toilets in rural India.
SBM-U launched on 2nd October 2014 targets to make urban India free from open defecation and achieving 100% scientific management of municipal solid waste in 4,041 statutory towns in the country.
PMGKY is a scheme introduced by the Government of India which has contributed in both 12% employer’s share and 12% employee’s share under Employees Provident Fund (EPF), totaling 24% of the wage for the wage month from March to August, 2020 for the establishments having upto 100 employees with 90% of such employees earning less than Rs. 15000/-.
In conclusion, India is making remarkable strides in achieving its vision of becoming a $30 trillion economy in next 30 years or $5 trillion economy by 2024-25, thanks to strong leadership and proactive economic policies. The recent budget for 2023-24 has injected a significant impetus into economic growth with a substantial increase in capital investment, which is set to stimulate economic activities and enhance employment situation in New India throughout the nation. India’s employment landscape is constantly evolving, and the employment situation in 2023 has witnessed substantial transformations.
The Indian economy’s growth is primarily driven by factors like private consumption, capital formation, and capital investment. This positive momentum has translated into increased employment situation in New India and reduced urban unemployment rates, alongside higher registrations in the Employee Provident Fund. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has played a pivotal role in providing direct employment in rural areas and creating indirect job opportunities for rural households.
The Consumer Confidence Survey, conducted by the Reserve Bank of India (RBI), reflects improved contemporary and future employment and income conditions. Households in India maintain a strong sense of optimism about their future earnings, signaling positive growth in the employment sector.
Moreover, various government schemes and initiatives are instrumental in creating employment opportunities across the country. Schemes like Atmanirbhar Bharat Rojgar Yojana (ABRY), Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), National Career Service (NCS), and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) have been essential contributors to job creation.
India’s startup ecosystem is booming, and the country ranks as the 3rd largest startup ecosystem globally. The surge in unicorns and the growth in various industries, such as renewable energy, biotechnology, and telemedicine, have created numerous job opportunities. The Production Linked Incentive (PLI) Schemes introduced by the government aim to stimulate production, economic growth, and employment, with significant results already evident.
Other initiatives like Digital India, Skill India, Make in India, and the Smart Cities mission are fostering employment in sectors like information technology, manufacturing, and urban development. The rise of sectors like artificial intelligence, agriculture, and robotics further contributes to employment generation and the economic advancement of the nation.
In summary, India’s employment landscape is on a positive trajectory, with a diversified range of schemes and sectors actively contributing to job creation and the country’s economic growth. India’s journey towards becoming a $5 trillion economy by 2024-25 is not just a vision; it’s a testament to the nation’s commitment to providing better employment situation in New India for its citizens and driving economic prosperity.
Humanity’s fascination with the Moon has spanned centuries, from ancient myths to the modern era of space exploration. In this exciting journey, India has emerged as a prominent player with its Chandrayaan series of missions. Among these, Chandrayaan-3 shines as a beacon of scientific and technological advancement, promising to extend our understanding of the Moon and beyond.
In the realm of space exploration, India continues to make remarkable strides with its ambitious space missions. Among these endeavors, the Chandrayaan series stands out as a testament to India’s scientific prowess and its dedication to unraveling the mysteries of the cosmos. The Chandrayaan-3 is the country’s ongoing lunar mission that promises to further expand our understanding of the Moon and space exploration as a whole.
Unveiling the Chandrayaan Saga
The Chandrayaan series is a testament to India’s space agency, the Indian Space Research Organisation (ISRO), and its dedication to unraveling the mysteries of the cosmos. Beginning with Chandrayaan-1 in 2008, the series marked a significant milestone for India, as it discovered evidence of water molecules on the lunar surface. This groundbreaking revelation challenged existing theories about the Moon’s history and potential as a stepping stone for future space exploration.
Credit: ISRO
On October 22, 2008, India’s inaugural lunar mission, Chandrayaan-1, achieved a successful launch from SDSC SHAR, Sriharikota. The spacecraft effectively maintained an orbit around the Moon, maintaining a distance of 100 km above the lunar surface. Its primary mission involved conducting chemical, mineralogical, and photo-geologic mapping of the Moon. To achieve this, the spacecraft was equipped with a total of 11 scientific instruments, developed collaboratively by experts from India, the USA, UK, Germany, Sweden, and Bulgaria.
Building on the success of Chandrayaan-1, ISRO launched Chandrayaan-2 in 2019. The Chandrayaan-2 mission stands as a notably intricate endeavor, signifying a substantial technological advancement in comparison to previous ISRO missions. It encompassed three integral components: an Orbiter, a Lander, and a Rover, all aimed at investigating the uncharted South Pole of the Moon. This mission’s core objective involves enriching lunar scientific understanding by conducting comprehensive examinations of various aspects, including topography, seismography, mineral distribution and identification, surface chemical composition, thermal characteristics of the uppermost soil layer, and the composition of the delicate lunar atmosphere. What sets this mission apart is its comprehensive scope, aiming to study not only specific lunar regions but also encompassing the exosphere, surface, and sub-surface areas in a unified mission.
Currently, ISRO has launched Chandrayaan-3 on July 14, 2023, at 14:35 Hrs. IST from the Second Launch Pad, SDSC-SHAR, Sriharikota. As on August 20th 2023, the Lander Module is currently positioned in a orbit of 25 km x 134 km. The anticipated commencement of the powered descent is scheduled for August 23, 2023, at approximately 1745 Hrs. IST.
Credit: ISRO
Detailed Overview of Chandrayaan-3
Chandrayaan-3 serves as a subsequent mission to Chandrayaan-2, aiming to showcase a comprehensive capacity for secure lunar surface landing and subsequent rover movement. This mission comprises both Lander and Rover components and launched using LVM3 from SDSC SHAR, Sriharikota. The propulsion module’s role encompasses transporting the Lander and Rover configuration until they reach a lunar orbit of 100 km. Notably, the propulsion module is equipped with the Spectro-polarimetry of Habitable Planet Earth (SHAPE) payload, designed to conduct spectral and polarimetric measurements of Earth while situated in lunar orbit.
Credit: ISRO
Lander Payloads: The Lander is equipped with various scientific instruments, including Chandra’s Surface Thermophysical Experiment (ChaSTE), which serves to measure both the thermal conductivity and temperature. Another important addition is the Instrument for Lunar Seismic Activity (ILSA), responsible for assessing seismic activity in the vicinity of the landing site. Additionally, the Langmuir Probe (LP) is integrated into the Lander’s payload suite to effectively estimate plasma density and its fluctuations. An interesting inclusion is the passive Laser Retroreflector Array provided by NASA, strategically incorporated to facilitate lunar laser ranging studies.
Rover Payloads: The Rover, on the other hand, carries distinctive scientific tools, such as the Alpha Particle X-ray Spectrometer (APXS) and the Laser Induced Breakdown Spectroscope (LIBS). These instruments play a crucial role in analyzing the elemental composition of the terrain surrounding the landing site.
Comprising an indigenous Lander module (LM), Propulsion module (PM), and a Rover, Chandrayaan-3 is driven by the objective of developing and showcasing novel technologies essential for interplanetary missions. A pivotal capability of the Lander is its aptitude for executing a gentle landing at a designated lunar location. Subsequently, the Rover will be deployed to conduct on-site chemical analyses of the lunar surface as it navigates its path.
Both the Lander and the Rover house scientific payloads tailored for conducting experiments on the lunar terrain. Operating from the launch vehicle injection to the final lunar orbit at a 100 km circular polar distance, the Propulsion Module (PM) plays a vital role in transporting the Lander (LM) and then detaching it upon arrival. Adding to its significance, the Propulsion Module features an additional scientific payload, enhancing its value by facilitating experiments post-separation of the Lander Module.
The GSLV-Mk3 has been selected as the designated launcher for Chandrayaan-3. This launch vehicle will position the integrated module into an Elliptic Parking Orbit (EPO), characterized by dimensions approximately 170 km x 36,500 km.
Chandrayaan-3’s mission encompasses the following key objectives:
Demonstration of Safe and Soft Lunar Landing: This involves showcasing the ability to safely land on the lunar surface with precision.
Rover Mobility on the Moon: Chandrayaan-3 aims to demonstrate the maneuvering capabilities of a rover on the lunar terrain.
In-Situ Scientific Experiments: The mission seeks to conduct scientific analyses directly on the lunar surface.
To fulfill these objectives, Chandrayaan-3 incorporates a range of advanced technologies within its Lander module:
Altimeters: Cutting-edge altimeter systems, including Laser and RF-based technologies, are employed for precise altitude measurements.
Velocimeters: The mission utilizes Laser Doppler Velocimeter and Lander Horizontal Velocity Camera systems to measure and analyze velocities.
Inertial Measurement: Laser Gyro-based Inertial referencing and Accelerometer packages contribute to accurate measurements and references.
Propulsion System: An advanced propulsion setup consists of 800N Throttleable Liquid Engines, 58N attitude thrusters, and Throttleable Engine Control Electronics.
Navigation, Guidance & Control (NGC): The mission employs intricate software elements for designing the powered descent trajectory and ensuring optimal navigation, guidance, and control.
Hazard Detection and Avoidance: A specialized Lander Hazard Detection & Avoidance Camera, accompanied by Processing Algorithms, enhances safety measures during landing.
Landing Leg Mechanism: An innovative landing leg mechanism is incorporated to facilitate safe touchdown.
To validate these advanced technologies in terrestrial conditions, several crucial Lander tests have been planned and successfully executed:
Integrated Cold Test: Demonstrates integrated sensors and navigation performance via helicopter-based test platforms.
Integrated Hot Test: A closed-loop performance test is carried out involving sensors, actuators, and NGC systems using a tower crane as the test platform.
Lander Leg Mechanism Test: Performance testing of the landing leg mechanism is conducted on a lunar simulant test bed, simulating various touch-down conditions.
These meticulous tests and technologies collectively contribute to Chandrayaan-3’s ability to achieve its mission objectives while ensuring the safety and success of this advanced lunar exploration endeavor.
Impact Beyond the Stars: ISRO’s Achievements Fuel India’s GDP, Employment, and Economic Growth
The global spotlight is now illuminated on the remarkable strides made by the Indian Space Research Organisation (ISRO), and its influence transcends the cosmos. ISRO’s monumental achievements are not only rewriting the history of space exploration but are intricately woven into the tapestry of India’s economic advancement, employment surge, and overall growth trajectory.
Amidst the awe-inspiring feats of launching satellites and missions to celestial bodies, ISRO’s contributions extend their reach to significantly bolstering India’s Gross Domestic Product (GDP). By prioritizing indigenous development of space technology, ISRO has nurtured an ecosystem that propels economic growth while reducing reliance on costly imports.
The diverse spectrum of roles required for space technology development – encompassing engineers, scientists, technicians, and support personnel – has prompted the creation of specialized education and training programs. This not only enriches the workforce but empowers individuals with skills that are transferable to various industries, magnifying the impact on employment opportunities.
Beyond Earth’s bounds, ISRO’s strategic collaborations with international agencies and commercial partners unlock avenues for economic expansion. Technology transfers, joint ventures, and satellite launches forged through these partnerships not only elevate India’s technological standing but also draw investments that catalyze economic growth.
In essence, ISRO’s celestial triumphs are sowing seeds of progress that transcend space. They resonate across India’s economic landscape, underpinning GDP growth, amplifying employment prospects, and nurturing an atmosphere of innovation that positions India at the forefront of global technological evolution.
ISRO, the Indian Space Research Organisation, plays a pivotal role in fostering economic development and employment in India:
Economic Growth: ISRO’s focus on indigenous space technology development has reduced dependency on expensive imports, positively impacting the country’s balance of payments. The organization’s satellite launches, remote sensing capabilities, and satellite-based services contribute significantly to various sectors of the economy, including agriculture, telecommunications, disaster management, and urban planning. These applications enhance productivity and economic output. India has now standing as one of the important exporters to the world.
Employment Generation: The multifaceted nature of ISRO’s work necessitates a highly skilled workforce. ISRO employs a wide range of professionals, including scientists, engineers, technicians, and support staff. Additionally, the organization’s endeavors stimulate job creation indirectly by fostering research, development, and manufacturing in the private sector and academia. Education and training programs related to space technology further enhance employability.
International Collaborations: ISRO’s collaborations with international space agencies and commercial partners facilitate technology transfer, joint ventures, and satellite launches. These partnerships attract foreign investments and promote the growth of the space industry in India, thereby creating more job opportunities and contributing to economic development.
Conclusion
As the countdown to Chandrayaan-3’s launch approaches, the excitement among scientists, space enthusiasts, and the general public is palpable. This mission is more than the sum of its parts; it represents a leap towards greater understanding, a stride towards technological excellence, and a testament to human curiosity and ingenuity.
Chandrayaan-3 stands on the cusp of history, waiting to leave its mark on the annals of space exploration. India’s journey to the Moon continues to inspire awe, fuel dreams, and ignite the spark of discovery. As the nation prepares to achieve another lunar milestone, it carries with it the hopes and aspirations of a nation poised to explore new frontiers and venture into the cosmos like never before.
On April 15th, 2023 an insightful session has been hosted by the Rt Hon’ble Bareness Verma at Lalit Hotel, which has also been live streamed on zoom. The event is a trilogy under “The Global Influence Club” which benefits women entrepreneurs by providing them with an opportunity to commence business.
The Rt. Hon’ble Baroness Verma welcomes the prestigious panellists followed by the informative and professionally led discussions revolves around trade barriers and women entrepreneurs. Besides the emphasize of the event, the most attractive aspect of event was our “National Anthem” which shows that the roots of Indian culture are being well respected, not just by Indians but as well as entire world
The event included 2 plenary discussions, the first highlighted the “What are the barriers to entrepreneurship, how can we overcome these, and what are the solutions?” and “Role of leadership, collaboration and knowledge sharing” which was moderated by Yashodhara Dasgupta, Director, UK INDIA Business Council and the panellists were –
Dr. Nataliey Bitature- Chief of Staff- Simba Group, Uganda
Smt. Smriti Irani, Hon’ble Cabinet Minister and Member of Lok Sabha delivered her message for the event through a video in order to contribute to the greater cause of the society, especially to show her support to the women entrepreneurs, Smt. Smriti Irani sent us an insightful message.
The second plenary discussion was moderated by me, Sunil Kumar Gupta on “Role of Government and barriers to finance for women entrepreneurs” pertaining mentioned panellists –
Sujeet Kumar, Chairman of the Committee on Petitions of Rajya Sabha.
HE Joyce Kakuramatsi Kikafunda, The High Commissioner of the Republic of Uganda,
Sangeeta Khorana, PhD, MILE, SHFEA, MIEX,Professor of Economics, Director, Centre for Trade, Development and Transition Economics
Priyanka Bhide, Director, Kubernein Initiative
Rajendra Bagade, Senior Partner, SARC Associates
The panel 2 discussion was commenced with introduction of panellists, followed by in-depth discussion on initiatives commenced by India, Uganda, and United Kingdom, highlighting the policies/ initiatives started by each government respectively. The highlighted schemes of India, UK and Uganda in the first 3 questions were on the following topics-
i) Women Entrepreneurship Platform (WEP) launched by NITI Ayog, Government of India in 2017, its website is wep.gov.in which acts as an aggregate connect for funding, incubation, market linkages, business development services, and Innovations.
ii) Uganda Women Entrepreneurship Programme which initiated by Government of Uganda which aimed at improving access to financial service to women and equipping them to skill for enterprise growth, value addition and marketing and according to you, what are other important measures Uganda government can take.
iii) Women’s Business Council relaunched in 2019 to focus on the sectors that have the most significant gender pay gaps and to drive forward progress to improve women’s representation within the workplace, respectively.
The Sh. Sujeet Kumar, Her Excellency of Uganda Joyce and Ms. Sangeeta Khorana has commendably answered the questions, emphasizing on the actual facts and figures. One common thing which was noticed in the answers of all the mentioned panellists was the spirit to create a business – friendly environment, which would allow women to give a kickstart to their career in respective fields.
MP Sh. Sujeet Kumar is serving the nation, and his state of Odisha. He is also an Engineer turned Lawyer, and is currently practising law at the Odisha High Court & Supreme Court of India and has founded LexMantra LLP (www.lexmantra.net), a boutique law firm. Previously, he worked at the World Economic Forum (WEF) in Geneva, Switzerland, and for United Nations Development Program (UNDP) and for Infosys Technologies Ltd. in India. He was an Asia Pacific Leadership Fellow (APLP) at the East West Centre, Hawaii (2009).
The ideas and visions of Sh. Sujeet Kumar is a proof of his expertise. He has pointed out the need of introducing documentation and government websites in native language of states, such as to open bank. He insisted that only presence of a scheme or policy is not enough without a passageway for it to be benefitting the relevant targets.
Besides this, he has also talked about, PM Awas Yojana and how it has sanctioned over 122.69 lakh houses and have released Central assistance of Rs 73.13 lakhs till date, among other topics.
Moreover, the High Commissioner of the Republic of Uganda, HE Joyce and Ms Sangeeta Khorana have ensured that Government of Uganda and United Kingdom, respectively has actively been supporting women entrepreneurs worldwide.
Further, the last question was based on “financial support to women entrepreneurs in India” highlighting the financial initiatives taken by Government of India such as MUDRA Yojana, provides loans upto 10 lakhs, Stand Up India scheme providing bank loans between 10 lakhs to 1 crore, Startup India providing seed money of 30 lakh, and Credit Guarantee Scheme for MSMEs providing loans upto 5 lakhs and 2 crores to women.
Thereafter there were insightful answers by Sh. Rajendra Bagade, Senior Partner of SARC on the Access to Finance and Taxation benefits. He has talked about how certain tax incentives can be availed to women entrepreneurs in order to allow them to attain maximum benefits.
Undoubtedly, tax is one of the significant fields, which influence the business and exemption to women entrepreneurs who can directly or indirectly reduce the financial burden. This will also allow women entrepreneurs to generate more revenue. He also suggested that government must introduce certain more tax benefits for women entrepreneurs which seems in need of the present time.
The answers by all the panellists driven from real life experience and challenges they have faced in certainly made the discussion more insightful and perceptive.
In my opinion, this has correctly pointed out the issue, since, women in India, especially in backward are not literate enough to understand English and in some areas even Hindi. The introduction of documentation and government websites in native language of State or UT will allow women to obtain a better understanding, hence, more chances of women being able to avail benefits of the schemes.
In a long run, this could also allow women to commence small scale business or commence savings, etc.
After the penal discussion, presentation and workshops were conducted by the Rt. Hon’ble Baroness Verma herself, highlighting some of the real-life experiences, which has helped her shape the future of thousands and hundreds of women globally. Moreover, the event also enabled insightful discussions on soft and hard skills, women’s fears, how to boosts confidence, leaderships, among others.
The event like these does not only brings like-minded people together, but it also brings women forward to speak about the challenges they face in this world, which is getting more advanced with time.
Besides this, the panellists like Ms. Mahak Garg, Ms. Priyanka Bhide, talked about importance of education for women, challenges women face in raising finance to start business, among other insightful topics.
Maybe someday, the homemakers or housewives will become the part of these events, only to reflects how they have been shaping the future of global economy by only supporting their husbands, brothers, fathers, mothers, and sisters.
In my opinion, “The women are a nurture by its nature and their contribution in society is much more than it seems. A woman is not only learning how to be herself in the world, but she is acting as a teacher for everyone around us, creating history in distinct fields, supporting their family in whatever way she can.”
I myself, provides complete support to women entrepreneurs of the entire world in order to contribute to achieving equality and equity. Feel free to contact me on my website – https://www.sunilkumargupta.com/
On April 15th, 2023 an insightful session has been hosted by the Rt Hon’ble Bareness Verma at Lalit Hotel, which has also been live streamed on zoom. The event is a trilogy under “The Global Influence Club” which benefits women entrepreneurs by providing them with an opportunity to commence business.
The Rt. Hon’ble Baroness Verma welcomes the prestigious panellists followed by the informative and professionally led discussions revolves around trade barriers and women entrepreneurs. Besides the emphasize of the event, the most attractive aspect of event was our “National Anthem” which shows that the roots of Indian culture are being well respected, not just by Indians but as well as entire world
The event included 2 plenary discussions, the first highlighted the “What are the barriers to entrepreneurship, how can we overcome these, and what are the solutions?” and “Role of leadership, collaboration and knowledge sharing” which was moderated by Yashodhara Dasgupta, Director, UK INDIA Business Council and the panellists were –
Dr. Nataliey Bitature- Chief of Staff- Simba Group, Uganda
Smt. Smriti Irani, Hon’ble Cabinet Minister and Member of Lok Sabha delivered her message for the event through a video in order to contribute to the greater cause of the society, especially to show her support to the women entrepreneurs, Smt. Smriti Irani sent us an insightful message.
The second plenary discussion was moderated by me, Sunil Kumar Gupta on “Role of Government and barriers to finance for women entrepreneurs” pertaining mentioned panellists –
Sujeet Kumar, Chairman of the Committee on Petitions of Rajya Sabha.
HE Joyce Kakuramatsi Kikafunda, The High Commissioner of the Republic of Uganda,
Sangeeta Khorana, PhD, MILE, SHFEA, MIEX,Professor of Economics, Director, Centre for Trade, Development and Transition Economics
Priyanka Bhide, Director, Kubernein Initiative
Rajendra Bagade, Senior Partner, SARC Associates
The panel 2 discussion was commenced with introduction of panellists, followed by in-depth discussion on initiatives commenced by India, Uganda, and United Kingdom, highlighting the policies/ initiatives started by each government respectively. The highlighted schemes of India, UK and Uganda in the first 3 questions were on the following topics-
i) Women Entrepreneurship Platform (WEP) launched by NITI Ayog, Government of India in 2017, its website is wep.gov.in which acts as an aggregate connect for funding, incubation, market linkages, business development services, and Innovations.
ii) Uganda Women Entrepreneurship Programme which initiated by Government of Uganda which aimed at improving access to financial service to women and equipping them to skill for enterprise growth, value addition and marketing and according to you, what are other important measures Uganda government can take.
iii) Women’s Business Council relaunched in 2019 to focus on the sectors that have the most significant gender pay gaps and to drive forward progress to improve women’s representation within the workplace, respectively.
The Sh. Sujeet Kumar, Her Excellency of Uganda Joyce and Ms. Sangeeta Khorana has commendably answered the questions, emphasizing on the actual facts and figures. One common thing which was noticed in the answers of all the mentioned panellists was the spirit to create a business – friendly environment, which would allow women to give a kickstart to their career in respective fields.
MP Sh. Sujeet Kumar is serving the nation, and his state of Odisha. He is also an Engineer turned Lawyer, and is currently practising law at the Odisha High Court & Supreme Court of India and has founded LexMantra LLP (www.lexmantra.net), a boutique law firm. Previously, he worked at the World Economic Forum (WEF) in Geneva, Switzerland, and for United Nations Development Program (UNDP) and for Infosys Technologies Ltd. in India. He was an Asia Pacific Leadership Fellow (APLP) at the East West Centre, Hawaii (2009).
The ideas and visions of Sh. Sujeet Kumar is a proof of his expertise. He has pointed out the need of introducing documentation and government websites in native language of states, such as to open bank. He insisted that only presence of a scheme or policy is not enough without a passageway for it to be benefitting the relevant targets.
Besides this, he has also talked about, PM Awas Yojana and how it has sanctioned over 122.69 lakh houses and have released Central assistance of Rs 73.13 lakhs till date, among other topics.
Moreover, the High Commissioner of the Republic of Uganda, HE Joyce and Ms Sangeeta Khorana have ensured that Government of Uganda and United Kingdom, respectively has actively been supporting women entrepreneurs worldwide.
Further, the last question was based on “financial support to women entrepreneurs in India” highlighting the financial initiatives taken by Government of India such as MUDRA Yojana, provides loans upto 10 lakhs, Stand Up India scheme providing bank loans between 10 lakhs to 1 crore, Startup India providing seed money of 30 lakh, and Credit Guarantee Scheme for MSMEs providing loans upto 5 lakhs and 2 crores to women.
Thereafter there were insightful answers by Sh. Rajendra Bagade, Senior Partner of SARC on the Access to Finance and Taxation benefits. He has talked about how certain tax incentives can be availed to women entrepreneurs in order to allow them to attain maximum benefits.
Undoubtedly, tax is one of the significant fields, which influence the business and exemption to women entrepreneurs who can directly or indirectly reduce the financial burden. This will also allow women entrepreneurs to generate more revenue. He also suggested that government must introduce certain more tax benefits for women entrepreneurs which seems in need of the present time.
The answers by all the panellists driven from real life experience and challenges they have faced in certainly made the discussion more insightful and perceptive.
In my opinion, this has correctly pointed out the issue, since, women in India, especially in backward are not literate enough to understand English and in some areas even Hindi. The introduction of documentation and government websites in native language of State or UT will allow women to obtain a better understanding, hence, more chances of women being able to avail benefits of the schemes.
In a long run, this could also allow women to commence small scale business or commence savings, etc.
After the penal discussion, presentation and workshops were conducted by the Rt. Hon’ble Baroness Verma herself, highlighting some of the real-life experiences, which has helped her shape the future of thousands and hundreds of women globally. Moreover, the event also enabled insightful discussions on soft and hard skills, women’s fears, how to boosts confidence, leaderships, among others.
The event like these does not only brings like-minded people together, but it also brings women forward to speak about the challenges they face in this world, which is getting more advanced with time.
Besides this, the panellists like Ms. Mahak Garg, Ms. Priyanka Bhide, talked about importance of education for women, challenges women face in raising finance to start business, among other insightful topics.
Maybe someday, the homemakers or housewives will become the part of these events, only to reflects how they have been shaping the future of global economy by only supporting their husbands, brothers, fathers, mothers, and sisters.
In my opinion, “The women are a nurture by its nature and their contribution in society is much more than it seems. A woman is not only learning how to be herself in the world, but she is acting as a teacher for everyone around us, creating history in distinct fields, supporting their family in whatever way she can.”
I myself, provides complete support to women entrepreneurs of entire world in order to contribute to achieving equality and equity.
On April 15th, 2023 an insightful session has been hosted by the Rt Hon’ble Bareness Verma at Lalit Hotel, which has also been live streamed on zoom. The event is a trilogy under “The Global Influence Club” which benefits women entrepreneurs by providing them with an opportunity to commence business.
The Rt. Hon’ble Baroness Verma welcomes the prestigious panellists followed by the informative and professionally led discussions revolves around trade barriers and women entrepreneurs. Besides the emphasize of the event, the most attractive aspect of event was our “National Anthem” which shows that the roots of Indian culture are being well respected, not just by Indians but as well as entire world.
The event included 2 plenary discussions, the first highlighted the “What are the barriers to entrepreneurship, how can we overcome these, and what are the solutions?” and “Role of leadership, collaboration and knowledge sharing” which was moderated by Yashodhara Dasgupta, Director, UK INDIA Business Council and the panellists were –
Dr. Nataliey Bitature- Chief of Staff- Simba Group, Uganda
Smt. Smriti Irani, Hon’ble Cabinet Minister and Member of Lok Sabha delivered her message for the event through a video in order to contribute to the greater cause of the society, especially to show her support to the women entrepreneurs, Smt. Smriti Irani sent us an insightful message.
The second plenary discussion was moderated by me, Sunil Kumar Gupta on “Role of Government and barriers to finance for women entrepreneurs” pertaining mentioned panellists –
Sujeet Kumar, Chairman of the Committee on Petitions of Rajya Sabha.
HE Joyce Kakuramatsi Kikafunda, The High Commissioner of the Republic of Uganda,
Sangeeta Khorana, PhD, MILE, SHFEA, MIEX,Professor of Economics, Director, Centre for Trade, Development and Transition Economics
Priyanka Bhide, Director, Kubernein Initiative
Rajendra Bagade, Senior Partner, SARC Associates
The panel 2 discussion was commenced with introduction of panellists, followed by in-depth discussion on initiatives commenced by India, Uganda, and United Kingdom, highlighting the policies/ initiatives started by each government respectively. The highlighted schemes of India, UK and Uganda in the first 3 questions were on the following topics-
i) Women Entrepreneurship Platform (WEP) launched by NITI Ayog, Government of India in 2017, its website is wep.gov.in which acts as an aggregate connect for funding, incubation, market linkages, business development services, and Innovations.
ii) Uganda Women Entrepreneurship Programme which initiated by Government of Uganda which aimed at improving access to financial service to women and equipping them to skill for enterprise growth, value addition and marketing and according to you, what are other important measures Uganda government can take.
iii) Women’s Business Council relaunched in 2019 to focus on the sectors that have the most significant gender pay gaps and to drive forward progress to improve women’s representation within the workplace, respectively.
The Sh. Sujeet Kumar, Her Excellency of Uganda Joyce and Ms. Sangeeta Khorana has commendably answered the questions, emphasizing on the actual facts and figures. One common thing which was noticed in the answers of all the mentioned panellists was the spirit to create a business – friendly environment, which would allow women to give a kickstart to their career in respective fields.
MP Sh. Sujeet Kumar is serving the nation, and his state of Odisha. He is also an Engineer turned Lawyer, and is currently practising law at the Odisha High Court & Supreme Court of India and has founded LexMantra LLP (www.lexmantra.net), a boutique law firm. Previously, he worked at the World Economic Forum (WEF) in Geneva, Switzerland, and for United Nations Development Program (UNDP) and for Infosys Technologies Ltd. in India. He was an Asia Pacific Leadership Fellow (APLP) at the East West Centre, Hawaii (2009).
The ideas and visions of Sh. Sujeet Kumar is a proof of his expertise. He has pointed out the need of introducing documentation and government websites in native language of states, such as to open bank. He insisted that only presence of a scheme or policy is not enough without a passageway for it to be benefitting the relevant targets.
Besides this, he has also talked about, PM Awas Yojana and how it has sanctioned over 122.69 lakh houses and have released Central assistance of Rs 73.13 lakhs till date, among other topics.
Moreover, the High Commissioner of the Republic of Uganda, HE Joyce and Ms Sangeeta Khorana have ensured that Government of Uganda and United Kingdom, respectively has actively been supporting women entrepreneurs worldwide.
Further, the last question was based on “financial support to women entrepreneurs in India” highlighting the financial initiatives taken by Government of India such as MUDRA Yojana, provides loans upto 10 lakhs, Stand Up India scheme providing bank loans between 10 lakhs to 1 crore, Startup India providing seed money of 30 lakh, and Credit Guarantee Scheme for MSMEs providing loans upto 5 lakhs and 2 crores to women.
Thereafter there were insightful answers by Sh. Rajendra Bagade, Senior Partner of SARC on the Access to Finance and Taxation benefits. He has talked about how certain tax incentives can be availed to women entrepreneurs in order to allow them to attain maximum benefits.
Undoubtedly, tax is one of the significant fields, which influence the business and exemption to women entrepreneurs who can directly or indirectly reduce the financial burden. This will also allow women entrepreneurs to generate more revenue. He also suggested that government must introduce certain more tax benefits for women entrepreneurs which seems in need of the present time.
The answers by all the panellists driven from real life experience and challenges they have faced in certainly made the discussion more insightful and perceptive.
In my opinion, this has correctly pointed out the issue, since, women in India, especially in backward are not literate enough to understand English and in some areas even Hindi. The introduction of documentation and government websites in native language of State or UT will allow women to obtain a better understanding, hence, more chances of women being able to avail benefits of the schemes.
In a long run, this could also allow women to commence small scale business or commence savings, etc.
After the penal discussion, presentation and workshops were conducted by the Rt. Hon’ble Baroness Verma herself, highlighting some of the real-life experiences, which has helped her shape the future of thousands and hundreds of women globally. Moreover, the event also enabled insightful discussions on soft and hard skills, women’s fears, how to boosts confidence, leaderships, among others.
The event like these does not only brings like-minded people together, but it also brings women forward to speak about the challenges they face in this world, which is getting more advanced with time.
Besides this, the panellists like Ms. Mahak Garg, Ms. Priyanka Bhide, talked about importance of education for women, challenges women face in raising finance to start business, among other insightful topics.
Maybe someday, the homemakers or housewives will become the part of these events, only to reflects how they have been shaping the future of global economy by only supporting their husbands, brothers, fathers, mothers, and sisters.
In my opinion, “The women are a nurture by its nature and their contribution in society is much more than it seems. A woman is not only learning how to be herself in the world, but she is acting as a teacher for everyone around us, creating history in distinct fields, supporting their family in whatever way she can.”
I myself, provides complete support to women entrepreneurs of entire world in order to contribute to achieving equality and equity.
On April 15th, 2023 an insightful session has been hosted by the Rt Hon’ble Bareness Verma at Lalit Hotel, which has also been live streamed on zoom. The event is a trilogy under “The Global Influence Club” which benefits women entrepreneurs by providing them with an opportunity to commence business.
The Rt. Hon’ble Baroness Verma welcomes the prestigious panellists followed by the informative and professionally led discussions revolves around trade barriers and women entrepreneurs. Besides the emphasize of the event, the most attractive aspect of event was our “National Anthem” which shows that the roots of Indian culture are being well respected, not just by Indians but as well as entire world.
The event included 2 plenary discussions, the first highlighted the “What are the barriers to entrepreneurship, how can we overcome these, and what are the solutions?” and “Role of leadership, collaboration and knowledge sharing” which was moderated by Yashodhara Dasgupta, Director, UK INDIA Business Council and the panellists were –
Dr. Nataliey Bitature- Chief of Staff- Simba Group, Uganda
Smt. Smriti Irani, Hon’ble Cabinet Minister and Member of Lok Sabha delivered her message for the event through a video in order to contribute to the greater cause of the society, especially to show her support to the women entrepreneurs, Smt. Smriti Irani sent us an insightful message.
The second plenary discussion was moderated by me, Sunil Kumar Gupta on “Role of Government and barriers to finance for women entrepreneurs” pertaining mentioned panellists –
Sujeet Kumar, Chairman of the Committee on Petitions of Rajya Sabha.
HE Joyce Kakuramatsi Kikafunda, The High Commissioner of the Republic of Uganda,
Sangeeta Khorana, PhD, MILE, SHFEA, MIEX,Professor of Economics, Director, Centre for Trade, Development and Transition Economics
Priyanka Bhide, Director, Kubernein Initiative
Rajendra Bagade, Senior Partner, SARC Associates
The panel 2 discussion was commenced with introduction of panellists, followed by in-depth discussion on initiatives commenced by India, Uganda, and United Kingdom, highlighting the policies/ initiatives started by each government respectively. The highlighted schemes of India, UK and Uganda in the first 3 questions were on the following topics-
i) Women Entrepreneurship Platform (WEP) launched by NITI Ayog, Government of India in 2017, its website is wep.gov.in which acts as an aggregate connect for funding, incubation, market linkages, business development services, and Innovations.
ii) Uganda Women Entrepreneurship Programme which initiated by Government of Uganda which aimed at improving access to financial service to women and equipping them to skill for enterprise growth, value addition and marketing and according to you, what are other important measures Uganda government can take.
iii) Women’s Business Council relaunched in 2019 to focus on the sectors that have the most significant gender pay gaps and to drive forward progress to improve women’s representation within the workplace, respectively.
The Sh. Sujeet Kumar, Her Excellency of Uganda Joyce and Ms. Sangeeta Khorana has commendably answered the questions, emphasizing on the actual facts and figures. One common thing which was noticed in the answers of all the mentioned panellists was the spirit to create a business – friendly environment, which would allow women to give a kickstart to their career in respective fields.
MP Sh. Sujeet Kumar is serving the nation, and his state of Odisha. He is also an Engineer turned Lawyer, and is currently practising law at the Odisha High Court & Supreme Court of India and has founded LexMantra LLP (www.lexmantra.net), a boutique law firm. Previously, he worked at the World Economic Forum (WEF) in Geneva, Switzerland, and for United Nations Development Program (UNDP) and for Infosys Technologies Ltd. in India. He was an Asia Pacific Leadership Fellow (APLP) at the East West Centre, Hawaii (2009).
The ideas and visions of Sh. Sujeet Kumar is a proof of his expertise. He has pointed out the need of introducing documentation and government websites in native language of states, such as to open bank. He insisted that only presence of a scheme or policy is not enough without a passageway for it to be benefitting the relevant targets.
Besides this, he has also talked about, PM Awas Yojana and how it has sanctioned over 122.69 lakh houses and have released Central assistance of Rs 73.13 lakhs till date, among other topics.
Moreover, the High Commissioner of the Republic of Uganda, HE Joyce and Ms Sangeeta Khorana have ensured that Government of Uganda and United Kingdom, respectively has actively been supporting women entrepreneurs worldwide.
Further, the last question was based on “financial support to women entrepreneurs in India” highlighting the financial initiatives taken by Government of India such as MUDRA Yojana, provides loans upto 10 lakhs, Stand Up India scheme providing bank loans between 10 lakhs to 1 crore, Startup India providing seed money of 30 lakh, and Credit Guarantee Scheme for MSMEs providing loans upto 5 lakhs and 2 crores to women.
Thereafter there were insightful answers by Sh. Rajendra Bagade, Senior Partner of SARC on the Access to Finance and Taxation benefits. He has talked about how certain tax incentives can be availed to women entrepreneurs in order to allow them to attain maximum benefits.
Undoubtedly, tax is one of the significant fields, which influence the business and exemption to women entrepreneurs who can directly or indirectly reduce the financial burden. This will also allow women entrepreneurs to generate more revenue. He also suggested that government must introduce certain more tax benefits for women entrepreneurs which seems in need of the present time.
The answers by all the panellists driven from real life experience and challenges they have faced in certainly made the discussion more insightful and perceptive.
In my opinion, this has correctly pointed out the issue, since, women in India, especially in backward are not literate enough to understand English and in some areas even Hindi. The introduction of documentation and government websites in native language of State or UT will allow women to obtain a better understanding, hence, more chances of women being able to avail benefits of the schemes.
In a long run, this could also allow women to commence small scale business or commence savings, etc.
After the penal discussion, presentation and workshops were conducted by the Rt. Hon’ble Baroness Verma herself, highlighting some of the real-life experiences, which has helped her shape the future of thousands and hundreds of women globally. Moreover, the event also enabled insightful discussions on soft and hard skills, women’s fears, how to boosts confidence, leaderships, among others.
The event like these does not only brings like-minded people together, but it also brings women forward to speak about the challenges they face in this world, which is getting more advanced with time.
Besides this, the panellists like Ms. Mahak Garg, Ms. Priyanka Bhide, talked about importance of education for women, challenges women face in raising finance to start business, among other insightful topics.
Maybe someday, the homemakers or housewives will become the part of these events, only to reflects how they have been shaping the future of global economy by only supporting their husbands, brothers, fathers, mothers, and sisters.
In my opinion, “The women are a nurture by its nature and their contribution in society is much more than it seems. A woman is not only learning how to be herself in the world, but she is acting as a teacher for everyone around us, creating history in distinct fields, supporting their family in whatever way she can.”
I myself, provides complete support to women entrepreneurs of entire world in order to contribute to achieving equality and equity.
On April 15th, 2023 an insightful session has been hosted by the Rt Hon’ble Bareness Verma at Lalit Hotel, which has also been live streamed on zoom. The event is a trilogy under “The Global Influence Club” which benefits women entrepreneurs by providing them with an opportunity to commence business.
The Rt. Hon’ble Baroness Verma welcomes the prestigious panellists followed by the informative and professionally led discussions revolves around trade barriers and women entrepreneurs. Besides the emphasize of the event, the most attractive aspect of event was our “National Anthem” which shows that the roots of Indian culture are being well respected, not just by Indians but as well as entire world.
The event included 2 plenary discussions, the first highlighted the “What are the barriers to entrepreneurship, how can we overcome these, and what are the solutions?” and “Role of leadership, collaboration and knowledge sharing” which was moderated by Yashodhara Dasgupta, Director, UK INDIA Business Council and the panellists were –
Dr. Nataliey Bitature- Chief of Staff- Simba Group, Uganda
Smt. Smriti Irani, Hon’ble Cabinet Minister and Member of Lok Sabha delivered her message for the event through a video in order to contribute to the greater cause of the society, especially to show her support to the women entrepreneurs, Smt. Smriti Irani sent us an insightful message.
The second plenary discussion was moderated by me, Sunil Kumar Gupta on “Role of Government and barriers to finance for women entrepreneurs” pertaining mentioned panellists –
Sujeet Kumar, Chairman of the Committee on Petitions of Rajya Sabha.
HE Joyce Kakuramatsi Kikafunda, The High Commissioner of the Republic of Uganda,
Sangeeta Khorana, PhD, MILE, SHFEA, MIEX,Professor of Economics, Director, Centre for Trade, Development and Transition Economics
Priyanka Bhide, Director, Kubernein Initiative
Rajendra Bagade, Senior Partner, SARC Associates
The panel 2 discussion was commenced with introduction of panellists, followed by in-depth discussion on initiatives commenced by India, Uganda, and United Kingdom, highlighting the policies/ initiatives started by each government respectively. The highlighted schemes of India, UK and Uganda in the first 3 questions were on the following topics-
i) Women Entrepreneurship Platform (WEP) launched by NITI Ayog, Government of India in 2017, its website is wep.gov.in which acts as an aggregate connect for funding, incubation, market linkages, business development services, and Innovations.
ii) Uganda Women Entrepreneurship Programme which initiated by Government of Uganda which aimed at improving access to financial service to women and equipping them to skill for enterprise growth, value addition and marketing and according to you, what are other important measures Uganda government can take.
iii) Women’s Business Council relaunched in 2019 to focus on the sectors that have the most significant gender pay gaps and to drive forward progress to improve women’s representation within the workplace, respectively.
The Sh. Sujeet Kumar, Her Excellency of Uganda Joyce and Ms. Sangeeta Khorana has commendably answered the questions, emphasizing on the actual facts and figures. One common thing which was noticed in the answers of all the mentioned panellists was the spirit to create a business – friendly environment, which would allow women to give a kickstart to their career in respective fields.
MP Sh. Sujeet Kumar is serving the nation, and his state of Odisha. He is also an Engineer turned Lawyer, and is currently practising law at the Odisha High Court & Supreme Court of India and has founded LexMantra LLP (www.lexmantra.net), a boutique law firm. Previously, he worked at the World Economic Forum (WEF) in Geneva, Switzerland, and for United Nations Development Program (UNDP) and for Infosys Technologies Ltd. in India. He was an Asia Pacific Leadership Fellow (APLP) at the East West Centre, Hawaii (2009).
The ideas and visions of Sh. Sujeet Kumar is a proof of his expertise. He has pointed out the need of introducing documentation and government websites in native language of states, such as to open bank. He insisted that only presence of a scheme or policy is not enough without a passageway for it to be benefitting the relevant targets.
Besides this, he has also talked about, PM Awas Yojana and how it has sanctioned over 122.69 lakh houses and have released Central assistance of Rs 73.13 lakhs till date, among other topics.
Moreover, the High Commissioner of the Republic of Uganda, HE Joyce and Ms Sangeeta Khorana have ensured that Government of Uganda and United Kingdom, respectively has actively been supporting women entrepreneurs worldwide.
Further, the last question was based on “financial support to women entrepreneurs in India” highlighting the financial initiatives taken by Government of India such as MUDRA Yojana, provides loans upto 10 lakhs, Stand Up India scheme providing bank loans between 10 lakhs to 1 crore, Startup India providing seed money of 30 lakh, and Credit Guarantee Scheme for MSMEs providing loans upto 5 lakhs and 2 crores to women.
Thereafter there were insightful answers by Sh. Rajendra Bagade, Senior Partner of SARC on the Access to Finance and Taxation benefits. He has talked about how certain tax incentives can be availed to women entrepreneurs in order to allow them to attain maximum benefits.
Undoubtedly, tax is one of the significant fields, which influence the business and exemption to women entrepreneurs who can directly or indirectly reduce the financial burden. This will also allow women entrepreneurs to generate more revenue. He also suggested that government must introduce certain more tax benefits for women entrepreneurs which seems in need of the present time.
The answers by all the panellists driven from real life experience and challenges they have faced in certainly made the discussion more insightful and perceptive.
In my opinion, this has correctly pointed out the issue, since, women in India, especially in backward are not literate enough to understand English and in some areas even Hindi. The introduction of documentation and government websites in native language of State or UT will allow women to obtain a better understanding, hence, more chances of women being able to avail benefits of the schemes.
In a long run, this could also allow women to commence small scale business or commence savings, etc.
After the penal discussion, presentation and workshops were conducted by the Rt. Hon’ble Baroness Verma herself, highlighting some of the real-life experiences, which has helped her shape the future of thousands and hundreds of women globally. Moreover, the event also enabled insightful discussions on soft and hard skills, women’s fears, how to boosts confidence, leaderships, among others.
The event like these does not only brings like-minded people together, but it also brings women forward to speak about the challenges they face in this world, which is getting more advanced with time.
Besides this, the panellists like Ms. Mahak Garg, Ms. Priyanka Bhide, talked about importance of education for women, challenges women face in raising finance to start business, among other insightful topics.
Maybe someday, the homemakers or housewives will become the part of these events, only to reflects how they have been shaping the future of global economy by only supporting their husbands, brothers, fathers, mothers, and sisters.
In my opinion, “The women are a nurture by its nature and their contribution in society is much more than it seems. A woman is not only learning how to be herself in the world, but she is acting as a teacher for everyone around us, creating history in distinct fields, supporting their family in whatever way she can.”
I myself, provides complete support to women entrepreneurs of entire world in order to contribute to achieving equality and equity.
On April 15th, 2023 an insightful session has been hosted by the Rt Hon’ble Bareness Verma at Lalit Hotel, which has also been live streamed on zoom. The event is a trilogy under “The Global Influence Club” which benefits women entrepreneurs by providing them with an opportunity to commence business.
The Rt. Hon’ble Baroness Verma welcomes the prestigious panellists followed by the informative and professionally led discussions revolves around trade barriers and women entrepreneurs. Besides the emphasize of the event, the most attractive aspect of event was our “National Anthem” which shows that the roots of Indian culture are being well respected, not just by Indians but as well as entire world.
The event included 2 plenary discussions, the first highlighted the “What are the barriers to entrepreneurship, how can we overcome these, and what are the solutions?” and “Role of leadership, collaboration and knowledge sharing” which was moderated by Yashodhara Dasgupta, Director, UK INDIA Business Council and the panellists were –
Dr. Nataliey Bitature- Chief of Staff- Simba Group, Uganda
Smt. Smriti Irani, Hon’ble Cabinet Minister and Member of Lok Sabha delivered her message for the event through a video in order to contribute to the greater cause of the society, especially to show her support to the women entrepreneurs, Smt. Smriti Irani sent us an insightful message.
The second plenary discussion was moderated by me, Sunil Kumar Gupta on “Role of Government and barriers to finance for women entrepreneurs” pertaining mentioned panellists –
Sujeet Kumar, Chairman of the Committee on Petitions of Rajya Sabha.
HE Joyce Kakuramatsi Kikafunda, The High Commissioner of the Republic of Uganda,
Sangeeta Khorana, PhD, MILE, SHFEA, MIEX,Professor of Economics, Director, Centre for Trade, Development and Transition Economics
Priyanka Bhide, Director, Kubernein Initiative
Rajendra Bagade, Senior Partner, SARC Associates
The panel 2 discussion was commenced with introduction of panellists, followed by in-depth discussion on initiatives commenced by India, Uganda, and United Kingdom, highlighting the policies/ initiatives started by each government respectively. The highlighted schemes of India, UK and Uganda in the first 3 questions were on the following topics-
i) Women Entrepreneurship Platform (WEP) launched by NITI Ayog, Government of India in 2017, its website is wep.gov.in which acts as an aggregate connect for funding, incubation, market linkages, business development services, and Innovations.
ii) Uganda Women Entrepreneurship Programme which initiated by Government of Uganda which aimed at improving access to financial service to women and equipping them to skill for enterprise growth, value addition and marketing and according to you, what are other important measures Uganda government can take.
iii) Women’s Business Council relaunched in 2019 to focus on the sectors that have the most significant gender pay gaps and to drive forward progress to improve women’s representation within the workplace, respectively.
The Sh. Sujeet Kumar, Her Excellency of Uganda Joyce and Ms. Sangeeta Khorana has commendably answered the questions, emphasizing on the actual facts and figures. One common thing which was noticed in the answers of all the mentioned panellists was the spirit to create a business – friendly environment, which would allow women to give a kickstart to their career in respective fields.
MP Sh. Sujeet Kumar is serving the nation, and his state of Odisha. He is also an Engineer turned Lawyer, and is currently practising law at the Odisha High Court & Supreme Court of India and has founded LexMantra LLP (www.lexmantra.net), a boutique law firm. Previously, he worked at the World Economic Forum (WEF) in Geneva, Switzerland, and for United Nations Development Program (UNDP) and for Infosys Technologies Ltd. in India. He was an Asia Pacific Leadership Fellow (APLP) at the East West Centre, Hawaii (2009).
The ideas and visions of Sh. Sujeet Kumar is a proof of his expertise. He has pointed out the need of introducing documentation and government websites in native language of states, such as to open bank. He insisted that only presence of a scheme or policy is not enough without a passageway for it to be benefitting the relevant targets.
Besides this, he has also talked about, PM Awas Yojana and how it has sanctioned over 122.69 lakh houses and have released Central assistance of Rs 73.13 lakhs till date, among other topics.
Moreover, the High Commissioner of the Republic of Uganda, HE Joyce and Ms Sangeeta Khorana have ensured that Government of Uganda and United Kingdom, respectively has actively been supporting women entrepreneurs worldwide.
Further, the last question was based on “financial support to women entrepreneurs in India” highlighting the financial initiatives taken by Government of India such as MUDRA Yojana, provides loans upto 10 lakhs, Stand Up India scheme providing bank loans between 10 lakhs to 1 crore, Startup India providing seed money of 30 lakh, and Credit Guarantee Scheme for MSMEs providing loans upto 5 lakhs and 2 crores to women.
Thereafter there were insightful answers by Sh. Rajendra Bagade, Senior Partner of SARC on the Access to Finance and Taxation benefits. He has talked about how certain tax incentives can be availed to women entrepreneurs in order to allow them to attain maximum benefits.
Undoubtedly, tax is one of the significant fields, which influence the business and exemption to women entrepreneurs who can directly or indirectly reduce the financial burden. This will also allow women entrepreneurs to generate more revenue. He also suggested that government must introduce certain more tax benefits for women entrepreneurs which seems in need of the present time.
The answers by all the panellists driven from real life experience and challenges they have faced in certainly made the discussion more insightful and perceptive.
In my opinion, this has correctly pointed out the issue, since, women in India, especially in backward are not literate enough to understand English and in some areas even Hindi. The introduction of documentation and government websites in native language of State or UT will allow women to obtain a better understanding, hence, more chances of women being able to avail benefits of the schemes.
In a long run, this could also allow women to commence small scale business or commence savings, etc.
After the penal discussion, presentation and workshops were conducted by the Rt. Hon’ble Baroness Verma herself, highlighting some of the real-life experiences, which has helped her shape the future of thousands and hundreds of women globally. Moreover, the event also enabled insightful discussions on soft and hard skills, women’s fears, how to boosts confidence, leaderships, among others.
The event like these does not only brings like-minded people together, but it also brings women forward to speak about the challenges they face in this world, which is getting more advanced with time.
Besides this, the panellists like Ms. Mahak Garg, Ms. Priyanka Bhide, talked about importance of education for women, challenges women face in raising finance to start business, among other insightful topics.
Maybe someday, the homemakers or housewives will become the part of these events, only to reflects how they have been shaping the future of global economy by only supporting their husbands, brothers, fathers, mothers, and sisters.
In my opinion, “The women are a nurture by its nature and their contribution in society is much more than it seems. A woman is not only learning how to be herself in the world, but she is acting as a teacher for everyone around us, creating history in distinct fields, supporting their family in whatever way she can.”
I myself, provides complete support to women entrepreneurs of entire world in order to contribute to achieving equality and equity.
On April 15th, 2023 an insightful session has been hosted by the Rt Hon’ble Bareness Verma at Lalit Hotel, which has also been live streamed on zoom. The event is a trilogy under “The Global Influence Club” which benefits women entrepreneurs by providing them with an opportunity to commence business.
The Rt. Hon’ble Baroness Verma welcomes the prestigious panellists followed by the informative and professionally led discussions revolves around trade barriers and women entrepreneurs. Besides the emphasize of the event, the most attractive aspect of event was our “National Anthem” which shows that the roots of Indian culture are being well respected, not just by Indians but as well as entire world.
The event included 2 plenary discussions, the first highlighted the “What are the barriers to entrepreneurship, how can we overcome these, and what are the solutions?” and “Role of leadership, collaboration and knowledge sharing” which was moderated by Yashodhara Dasgupta, Director, UK INDIA Business Council and the panellists were –
Dr. Nataliey Bitature- Chief of Staff- Simba Group, Uganda
Smt. Smriti Irani, Hon’ble Cabinet Minister and Member of Lok Sabha delivered her message for the event through a video in order to contribute to the greater cause of the society, especially to show her support to the women entrepreneurs, Smt. Smriti Irani sent us an insightful message.
The second plenary discussion was moderated by me, Sunil Kumar Gupta on “Role of Government and barriers to finance for women entrepreneurs” pertaining mentioned panellists –
Sujeet Kumar, Chairman of the Committee on Petitions of Rajya Sabha.
HE Joyce Kakuramatsi Kikafunda, The High Commissioner of the Republic of Uganda,
Sangeeta Khorana, PhD, MILE, SHFEA, MIEX,Professor of Economics, Director, Centre for Trade, Development and Transition Economics
Priyanka Bhide, Director, Kubernein Initiative
Rajendra Bagade, Senior Partner, SARC Associates
The panel 2 discussion was commenced with introduction of panellists, followed by in-depth discussion on initiatives commenced by India, Uganda, and United Kingdom, highlighting the policies/ initiatives started by each government respectively. The highlighted schemes of India, UK and Uganda in the first 3 questions were on the following topics-
i) Women Entrepreneurship Platform (WEP) launched by NITI Ayog, Government of India in 2017, its website is wep.gov.in which acts as an aggregate connect for funding, incubation, market linkages, business development services, and Innovations.
ii) Uganda Women Entrepreneurship Programme which initiated by Government of Uganda which aimed at improving access to financial service to women and equipping them to skill for enterprise growth, value addition and marketing and according to you, what are other important measures Uganda government can take.
iii) Women’s Business Council relaunched in 2019 to focus on the sectors that have the most significant gender pay gaps and to drive forward progress to improve women’s representation within the workplace, respectively.
The Sh. Sujeet Kumar, Her Excellency of Uganda Joyce and Ms. Sangeeta Khorana has commendably answered the questions, emphasizing on the actual facts and figures. One common thing which was noticed in the answers of all the mentioned panellists was the spirit to create a business – friendly environment, which would allow women to give a kickstart to their career in respective fields.
MP Sh. Sujeet Kumar is serving the nation, and his state of Odisha. He is also an Engineer turned Lawyer, and is currently practising law at the Odisha High Court & Supreme Court of India and has founded LexMantra LLP (www.lexmantra.net), a boutique law firm. Previously, he worked at the World Economic Forum (WEF) in Geneva, Switzerland, and for United Nations Development Program (UNDP) and for Infosys Technologies Ltd. in India. He was an Asia Pacific Leadership Fellow (APLP) at the East West Centre, Hawaii (2009).
The ideas and visions of Sh. Sujeet Kumar is a proof of his expertise. He has pointed out the need of introducing documentation and government websites in native language of states, such as to open bank. He insisted that only presence of a scheme or policy is not enough without a passageway for it to be benefitting the relevant targets.
Besides this, he has also talked about, PM Awas Yojana and how it has sanctioned over 122.69 lakh houses and have released Central assistance of Rs 73.13 lakhs till date, among other topics.
Moreover, the High Commissioner of the Republic of Uganda, HE Joyce and Ms Sangeeta Khorana have ensured that Government of Uganda and United Kingdom, respectively has actively been supporting women entrepreneurs worldwide.
Further, the last question was based on “financial support to women entrepreneurs in India” highlighting the financial initiatives taken by Government of India such as MUDRA Yojana, provides loans upto 10 lakhs, Stand Up India scheme providing bank loans between 10 lakhs to 1 crore, Startup India providing seed money of 30 lakh, and Credit Guarantee Scheme for MSMEs providing loans upto 5 lakhs and 2 crores to women.
Thereafter there were insightful answers by Sh. Rajendra Bagade, Senior Partner of SARC on the Access to Finance and Taxation benefits. He has talked about how certain tax incentives can be availed to women entrepreneurs in order to allow them to attain maximum benefits.
Undoubtedly, tax is one of the significant fields, which influence the business and exemption to women entrepreneurs who can directly or indirectly reduce the financial burden. This will also allow women entrepreneurs to generate more revenue. He also suggested that government must introduce certain more tax benefits for women entrepreneurs which seems in need of the present time.
The answers by all the panellists driven from real life experience and challenges they have faced in certainly made the discussion more insightful and perceptive.
In my opinion, this has correctly pointed out the issue, since, women in India, especially in backward are not literate enough to understand English and in some areas even Hindi. The introduction of documentation and government websites in native language of State or UT will allow women to obtain a better understanding, hence, more chances of women being able to avail benefits of the schemes.
In a long run, this could also allow women to commence small scale business or commence savings, etc.
After the penal discussion, presentation and workshops were conducted by the Rt. Hon’ble Baroness Verma herself, highlighting some of the real-life experiences, which has helped her shape the future of thousands and hundreds of women globally. Moreover, the event also enabled insightful discussions on soft and hard skills, women’s fears, how to boosts confidence, leaderships, among others.
The event like these does not only brings like-minded people together, but it also brings women forward to speak about the challenges they face in this world, which is getting more advanced with time.
Besides this, the panellists like Ms. Mahak Garg, Ms. Priyanka Bhide, talked about importance of education for women, challenges women face in raising finance to start business, among other insightful topics.
Maybe someday, the homemakers or housewives will become the part of these events, only to reflects how they have been shaping the future of global economy by only supporting their husbands, brothers, fathers, mothers, and sisters.
In my opinion, “The women are a nurture by its nature and their contribution in society is much more than it seems. A woman is not only learning how to be herself in the world, but she is acting as a teacher for everyone around us, creating history in distinct fields, supporting their family in whatever way she can.”
I myself, provides complete support to women entrepreneurs of entire world in order to contribute to achieving equality and equity.
On April 15th, 2023 an insightful session has been hosted by the Rt Hon’ble Bareness Verma at Lalit Hotel, which has also been live streamed on zoom. The event is a trilogy under “The Global Influence Club” which benefits women entrepreneurs by providing them with an opportunity to commence business.
The Rt. Hon’ble Baroness Verma welcomes the prestigious panellists followed by the informative and professionally led discussions revolves around trade barriers and women entrepreneurs. Besides the emphasize of the event, the most attractive aspect of event was our “National Anthem” which shows that the roots of Indian culture are being well respected, not just by Indians but as well as entire world.
Add video – national anthem
The event included 2 plenary discussions, the first highlighted the “What are the barriers to entrepreneurship, how can we overcome these, and what are the solutions?” and “Role of leadership, collaboration and knowledge sharing” which was moderated by Yashodhara Dasgupta, Director, UK INDIA Business Council and the panellists were –
Dr. Nataliey Bitature- Chief of Staff- Simba Group, Uganda
Smt. Smriti Irani, Hon’ble Cabinet Minister and Member of Lok Sabha delivered her message for the event through a video in order to contribute to the greater cause of the society, especially to show her support to the women entrepreneurs, Smt. Smriti Irani sent us an insightful message.
The second plenary discussion was moderated by me, Sunil Kumar Gupta on “Role of Government and barriers to finance for women entrepreneurs” pertaining mentioned panellists –
Sujeet Kumar, Chairman of the Committee on Petitions of Rajya Sabha.
HE Joyce Kakuramatsi Kikafunda, The High Commissioner of the Republic of Uganda,
Sangeeta Khorana, PhD, MILE, SHFEA, MIEX,Professor of Economics, Director, Centre for Trade, Development and Transition Economics
Priyanka Bhide, Director, Kubernein Initiative
Rajendra Bagade, Senior Partner, SARC Associates
The panel 2 discussion was commenced with introduction of panellists, followed by in-depth discussion on initiatives commenced by India, Uganda, and United Kingdom, highlighting the policies/ initiatives started by each government respectively. The highlighted schemes of India, UK and Uganda in the first 3 questions were on the following topics-
i) Women Entrepreneurship Platform (WEP) launched by NITI Ayog, Government of India in 2017, its website is wep.gov.in which acts as an aggregate connect for funding, incubation, market linkages, business development services, and Innovations.
ii) Uganda Women Entrepreneurship Programme which initiated by Government of Uganda which aimed at improving access to financial service to women and equipping them to skill for enterprise growth, value addition and marketing and according to you, what are other important measures Uganda government can take.
iii) Women’s Business Council relaunched in 2019 to focus on the sectors that have the most significant gender pay gaps and to drive forward progress to improve women’s representation within the workplace, respectively.
The Sh. Sujeet Kumar, Her Excellency of Uganda Joyce and Ms. Sangeeta Khorana has commendably answered the questions, emphasizing on the actual facts and figures. One common thing which was noticed in the answers of all the mentioned panellists was the spirit to create a business – friendly environment, which would allow women to give a kickstart to their career in respective fields.
MP Sh. Sujeet Kumar is serving the nation, and his state of Odisha. He is also an Engineer turned Lawyer, and is currently practising law at the Odisha High Court & Supreme Court of India and has founded LexMantra LLP (www.lexmantra.net), a boutique law firm. Previously, he worked at the World Economic Forum (WEF) in Geneva, Switzerland, and for United Nations Development Program (UNDP) and for Infosys Technologies Ltd. in India. He was an Asia Pacific Leadership Fellow (APLP) at the East West Centre, Hawaii (2009).
The ideas and visions of Sh. Sujeet Kumar is a proof of his expertise. He has pointed out the need of introducing documentation and government websites in native language of states, such as to open bank. He insisted that only presence of a scheme or policy is not enough without a passageway for it to be benefitting the relevant targets.
Besides this, he has also talked about, PM Awas Yojana and how it has sanctioned over 122.69 lakh houses and have released Central assistance of Rs 73.13 lakhs till date, among other topics.
Moreover, the High Commissioner of the Republic of Uganda, HE Joyce and Ms Sangeeta Khorana have ensured that Government of Uganda and United Kingdom, respectively has actively been supporting women entrepreneurs worldwide.
Further, the last question was based on “financial support to women entrepreneurs in India” highlighting the financial initiatives taken by Government of India such as MUDRA Yojana, provides loans upto 10 lakhs, Stand Up India scheme providing bank loans between 10 lakhs to 1 crore, Startup India providing seed money of 30 lakh, and Credit Guarantee Scheme for MSMEs providing loans upto 5 lakhs and 2 crores to women.
Thereafter there were insightful answers by Sh. Rajendra Bagade, Senior Partner of SARC on the Access to Finance and Taxation benefits. He has talked about how certain tax incentives can be availed to women entrepreneurs in order to allow them to attain maximum benefits.
Undoubtedly, tax is one of the significant fields, which influence the business and exemption to women entrepreneurs who can directly or indirectly reduce the financial burden. This will also allow women entrepreneurs to generate more revenue. He also suggested that government must introduce certain more tax benefits for women entrepreneurs which seems in need of the present time.
The answers by all the panellists driven from real life experience and challenges they have faced in certainly made the discussion more insightful and perceptive.
In my opinion, this has correctly pointed out the issue, since, women in India, especially in backward are not literate enough to understand English and in some areas even Hindi. The introduction of documentation and government websites in native language of State or UT will allow women to obtain a better understanding, hence, more chances of women being able to avail benefits of the schemes.
In a long run, this could also allow women to commence small scale business or commence savings, etc.
After the penal discussion, presentation and workshops were conducted by the Rt. Hon’ble Baroness Verma herself, highlighting some of the real-life experiences, which has helped her shape the future of thousands and hundreds of women globally. Moreover, the event also enabled insightful discussions on soft and hard skills, women’s fears, how to boosts confidence, leaderships, among others.
The event like these does not only brings like-minded people together, but it also brings women forward to speak about the challenges they face in this world, which is getting more advanced with time.
Besides this, the panellists like Ms. Mahak Garg, Ms. Priyanka Bhide, talked about importance of education for women, challenges women face in raising finance to start business, among other insightful topics.
Maybe someday, the homemakers or housewives will become the part of these events, only to reflects how they have been shaping the future of global economy by only supporting their husbands, brothers, fathers, mothers, and sisters.
In my opinion, “The women are a nurture by its nature and their contribution in society is much more than it seems. A woman is not only learning how to be herself in the world, but she is acting as a teacher for everyone around us, creating history in distinct fields, supporting their family in whatever way she can.”
I myself, provides complete support to women entrepreneurs of entire world in order to contribute to achieving equality and equity.
On the internet, data or information is widely spread and with each year, technology is becoming more comprehensive and complicated, and so do cyberattacks. Digital crime is also enhancing with great intensity and certainly, it is not restricted to any specific Internet-accessible platforms. Different devices such as desktops, smartphones, and tablets each might carry a particular level of digital defense, yet each device contains certain vulnerabilities which provide a pathway for hackers to attune to the devices.
On the positive side, particular digital security tools and services operate parallel to these negative tech counterparts.
In this section, we will emphasize on the introduction of cyber security and other associated concepts of the same. Cyber security refers to the set of techniques that are used to conserve the integrity of networks, programs, and data from attack, damage, or unauthorized access. Information technology includes a broader category that preserves all information assets, be it in hard copy or digital form. The term cyber security is not restricted to computers, but it is also implemented to the varied inter-connected systems such as computers, servers, mobile devices, electronic systems, networks, or data.
The digital safety tool is tremendously flexible and possessed by distinct industries and of various designs or types. Various devices such as navigation apps, game apps, and social apps always have access to the internet, like our desktops, mobile phones, tablets, laptops, and others. Similar to that, even if you are pursuing a store or listening to music, there is a probability that you are engaging in the environment utilizing the necessities of cybersecurity’s modern definitions.
Contemporary, cyber security jobs contain the digital defense of information or data. Typically, it includes information storage protection, identification of intrusion, and response to cyber-attacks that seek to steal personal information. The scope of cyber security is huge and the niche of cyber security to digitally instantly raises concern. In India, cyber crimes are covered by the Information Technology Act, 2000, and Indian Penal Code, 1860 to prevent cyber crimes. The primary one takes care of issues associated with cyber crimes and electronic commerce, while the latter one, provides an outline and definition, including punishments, which we will discuss later in the blog.
It is to be noted that, cybersecurity encompasses –
1. Network Security
Primarily, cyber security emphasizes on data storage and transfer, while the network is much broader. As its name defines it, in general, network security includes the defense, maintenance, and recovery of networks. It contains cyber security as a defensive way to protect all network users from digital threats, even if a provided cyber attacker pertains more purposes than mere conservation of data exploitation.
With the objective to conserve the integrity, safety, and sustainability of network users, the professionals operating the same must emphasize on securing connection privacy to prevent cyber security.
The network security services also include anti-virus software, malware detection tools, firewall upgrades, virtual private networks (VPNs), and other security programs. As mentioned, the terms cyber security and network security are often used interchangeably, which often cover similar bases and deviate at intersections where data storage and data tracking need to overlap.
2. Information Security
Several commercial workplaces use synchronized facets of day-by-day operations. It handles user login, schedule management tools, project software, and telecommunication, among others.
It conserves sensitive information from unpermitted activities containing inspection, modification, recording, and other disruption or destruction. The objective of information technology is to ensure the safety and privacy of significant data such as details of a customer account, financial data, or intellectual property.
3. Operational Security
Operational security is also known as procedural security, which is referred to as a risk of managing processes to view the activity from the perspective of an adversary with the objective to conserve sensitive information from attackers. It includes the below-mentioned steps, as follows –
Identification of sensitive data: Identify the sensitive data containing product research, intellectual property, financial statements, customer information, and employee information; this will be the data one will require to protect resources.
Identification of potential threats: For every category of sensitive information, one must identify the potential threats. It is to be noted that, while you look for potential third-party risks, also watch out for internal threats.
Analyzation of security holes and other vulnerabilities: One must access their information and means of safeguarding and determine the loopholes or other weaknesses associated with security.
Enhance the level of security with respect to each vulnerability: Rank the distinct vulnerabilities based on the likelihood of attacks, the extent of damage, and the duration of recovery from the same.
What Are the Different Types of Cybersecurity?
In this section, we will highlight the different types of cyber security. Cyber security pertains to a wide field possessing distinct disciplines, which mainly can be characterized as follows –
a. Network Security
Major cyberattacks take place over a network and in order to ensure network security, network security solutions need to be utilized which are designed primarily to identify and block such attacks. Moreover, these solutions include data and access controls like Data Loss Prevention (DLP), IAM (Identity Access Management), NAC (Network Access Control), and NGFW (Next-Generation Firewall) application controls with the motto to enforce safe web use policies.
Besides this, in order to ensure multi-layered network protection, advanced technologies such as IPS (Intrusion Prevention System), NGAV (Next-Gen Antivirus), Sandboxing, and CDR (Content Disarm and Reconstruction) are utilized. However, this won’t be enough to prevent such attacks, therefore, network analytics, threat hunting, and automated Security Orchestration and Response (SOAR) must be used.
b. Cloud Security
Multi-National Companies (MNCs), large organizations, firms, and even startups are constantly adopting cloud computing, which makes cloud security a major priority considering that it engages in data storage, software information, networking, analytics, and intelligence over the internet with the sole objective to provide instant innovation, flexible resources and economies of scale.
Considering the threat to cloud security could result in a breach of security, therefore, it is significant to obtain a cloud security strategy containing cyber security solutions, controls, policies, and services that allow you to protect the entire cloud deployment against such attacks.
c. IoT Security
The full form of IoT is, the “Internet of Things”, which offers several productivity benefits to an organization, however, the same device tends to introduce the same organization to potential cyber security threats which result in breaches of vulnerable devices inadvertently connected to the internet. IoT security preserves devices from discovering and classification of connected devices, including automatic segmentation to administer network activities and utilizing IPS as a patch (virtual) in order to restrict the exploitation of vulnerable IoT devices.
a. Application Security
Like any other activities mentioned here, web applications are also connected to the internet which again impose threat due to flaws in application such as injection, broken authentication, misconfiguration, and cross-site scripting.
Application security is an appropriate way to prevent bot attacks and malicious interactions with APIs and web applications.
b. Mobile Security
Mobile security is often overlooked which allows access to corporate data, including exposing businesses to threats through malicious applications (apps), phishing, instant messaging attacks, and phone mirroring to name a few. Mobile security preserves such attacks and prevents operating systems and devices from such attacks.
c. Zero Trust
This traditional security model is a perimeter-emphasized model, which builds walls around the valuable assets of the organization. On the contrary, this imposes distinct issues like imposing possible inside threats and instant dissolution of the perimeter of the network. This security focuses on a granular approach in order to ensure security, including protecting individual resources by a combination of micro-segmentation, observing and enforcement of role-based access controls.
d. Endpoint Security
As mentioned earlier, the zero trust security model stipulates the creation of micro-segments around data segments wherever they might be. A way to prevent this is by using endpoint security. Endpoint security allows firms, organizations, and companies to preserve end users using devices like laptops, mobile phones, tablets, smartwatches, and desktops with data and network security controls, advanced threat prevention such as anti-phishing and anti-ransomware, and technologies.
In this section, we have understood the types of cyber security; now let’s move to the importance of cyber security to establish a better understanding of preventing cyberattacks since with the introduction of technologies, our vulnerability towards cyberattacks is constantly increasing.
The importance of cyber security differs based on the users or who is utilizing the technologies, it could be a student, business or organization, or banking sector, among others.
What Are the Distinct Importance of Cyber Security?
1. Importance For Digital World
Cybersecurity imposes significant threats to the digital world, especially, when the world is connected with each other digitally. For instance, in 2017 breach of Equifax exposed the data of over 145 million users, while in 2018 the breach of Marriot exposed the data (personal information) of 800 million individuals.
Such breaches of personal data or information had significantly affected the companies financially, most significantly resulting in losing customers. Hereto, cyber security is important to preserve businesses and persons from probable threatening consequences of data or security breaches.
2. Importance For Banking Sector
The banking sector is the backbone of any sector since a breach of the banking sector of an economy would result in a breach of names, emails, addresses, phone numbers, and other personal information, which further allows access to account information, containing account numbers and balances of customers.
Therefore, such breaches permit the hacker to access an abundance of sensitive data breaches, which could be the reason for fraud and malicious purposes.
3. Importance For Business or Organizations
The importance of cyber security for businesses or organizations allows hackers to access the data or personal information of customers or clients, which could also include information or details of credit or debit cards. This also results in businesses or organizations paying millions or billions to hackers.
4. Importance For Students
Cybersecurity is significant for students as well, which allows hackers to access their bank details and credit or debit card information, including access to their Social Security numbers.
With an understanding of the importance of cyber security, let head on to the features of cyber security in the next section.
What Are the Features of Cyber Security, One Should Know?
The entire world is interconnected with the internet, which has significantly enhanced during the pandemic through the usage of web applications or other websites. Despite bringing the entire world close, this has also presented an opportunity for cybercriminals to breach into our systems or mobiles. Considering the level of harm it can cause for an individual or organization or firm, everyone must immediately attain more knowledge with respect to the understanding of features of cyber security. An adequate understanding of the features of cyber security could be the primary step toward establishing a defense against such breaches and attacks.
1. Prevention from external threats
External sources are causes for cyberattacks or breaches through phishing, denial of services, endangered web applications, and hostile email attachments, among others. Hereto, such security applications attached to respective systems constantly monitor or prevent these external threats.
2. Regulatory compliance for security
Information security is significant for any organization or firm, be it the healthcare sector or banking sector, or finance sector. Considering that, all the organizations or firms pertain to an eccentric set of standards, practices, regulations, and compliance with respect to data or information collected by them.
Regulatory compliance is basically ensuring conformance with compliance requirements to laws, specifications, and guidelines processes associated with the business.
3. Fortification from internal threats
Prevention from internal threats is as much as essential as ensuring preservation from external threats since both inflict threats on the organization or firm. The primary reason for triggering internal threats is misconfiguration, employee mistakes, faulty choices of employees, or bad actors.
Although, a definitive security system and a cybersecurity team attenuate these threats or attacks from organizations or firms.
4. Cloud-based security services
The cloud-based security services refer to the backend brain security systems which utilize a wide range of tools with the objective to ensure proper analytics and intelligence threat. Such services pertain a monitoring security endpoints and pervade machine learning models with the objective to ameliorate the scanning for all-inclusive objectives.
5. Consolidated solutions
Cybersecurity solutions should provide an absolute panacea to preserve the system of organizations or firms from the wide range of threats. In order to do so, the concerned security experts must know when and how to ensure complete utilization of anti-spam, anti-virus, anti-malware, content filters, and wireless security, among others.
This comprehensive protection or solution tends to preserve the system from such threats or attacks without compromising the confidentiality and security of data and enterprises.
A wide range of security threats or cyber-attacks can be prevented or blocked by ensuring timely detection or tracking of the same. In order to do so, appropriate platforms are used that tracks such attacks and spontaneously send alert and response to them. The tools such as hardware and software firewalls, network analyzers, SSL or TLS proxy servers, and other web applications or apps or platforms are used.
Cybersecurity Security Awareness & Indian Economy
The Internet had brought a wave of transformation in everyone’s life by altering the way of communicating, sharing updates, playing games, shopping, and even making friends. The internet is affecting every part of our daily life.
Considering its effect on our daily lives and every sector of the economy, it is significant to attain the proper education regarding the proclamation of information with the objective to prevent cyberattacks or crimes, including reenacting that students play a crucial role in creating an ecosystem of cyber security with the motto to restrict cyber-attacks or crimes.
Cyberspace interconnects us globally and keeping in the view that its usage is constantly expanding, the rate of cybercrimes, especially against children and women are rising such as cyberstalking, cyberbullying, cyber harassment, child pornography, and rape content, among others. With the objective to create a safe and sound cyber ecosystem, it is essential to follow cyber-safe practices.
With that, let’s move on to cyber crimes laws in India –
a. Information Technology Act, 2000 (IT Act)
The IT Act enacts cyber laws in order to regulate electronic means of communication, and trade, including commerce to prevent computer crimes. The overview of the act is defined as –
“An Act to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as “electronic commerce”, which involve the use of alternatives to paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies and further to amend the Indian Penal Code, the Indian Evidence Act, 1872, the Bankers’ Books Evidence Act, 1891 and the Reserve Bank of India Act, 1934 and for matters connected therewith or incidental thereto.“
If any person without the permission of the owner or any other person who is in charge of a computer, computer system, or computer network-
“(i) accesses such computer, computer system or computer network or computer resource; (ii) downloads, copies or computer system or computer network or computer resource; (ii) downloads, copies or extracts any data, computer data-base or information; (iii) introduces or causes to be introduced any computer contaminant or computer virus; (iv) damages or causes to be damaged any computer, computer system or computer network data, computer database or any other programmes; (v) disrupts or causes disruption; (vi) denies or causes the denial of access to any person authorised to access; (vii) provides any assistance to any person to facilitate access in contravention of the provisions of this Act; (viii) charges the services availed of by a person to the account of another person by tampering with or manipulating any computer, computer system or computer network; destroys, deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means; (x) steal, conceals, destroys or alters or causes any person to steal, conceal, destroy or alter any computer source code with intention to cause damage; he shall be liable to pay damages by way of compensation to the person so affected.“
It simply signifies that if an individual commits cybercrimes like computer damage to a victim without the consent of the same. Then the owner of the computer is entitled to a refund of the entire damage. While section 66 is applicable to any conduct provided in Section 43 which is considered to be dishonest and fraudulent the cyber criminal is punishable with imprisonment of up to 3 years or with a fine which might extend up to rupees five lahks, or both.
While section 66 is applicable to any conduct provided in Section 43 which is considered to be dishonest and fraudulent the cyber criminal is punishable with imprisonment of up to 3 years or with a fine which might extend up to rupees five lahks, or both.
2.Further Extension of Section 66
Section 66B is defined punishment for deceitful stealing of computer resources or communication devices, it is defined as –
“Whoever dishonestly receive or retains any stolen computer resource or communication device knowing or having reason to believe the same to be stolen computer resource or communication device, shall be punished with imprisonment of either description for a term which may extend to three years or with fine which may extend to rupees one lakh or with both.“
Section 66C, includes information associated with punishment related to identity theft such as using an electronic signature, password, or any other unique identification feature fraudulently or dishonestly, which describes punishment as –
“Whoever, fraudulently or dishonestly make use of the electronic signature, password or any other unique identification feature of any other person, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine with may extend to rupees one lakh.“
Section 66D, this section involves information associated with punishment for cheating by personation by using computer resources, which is defined as –
“Whoever, by means for any communication device or computer resource cheats by personating, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to one lakh rupees.”
Section 66E, this section of the information technology act includes information related to punishment associated with privacy violations such as taking pictures of private areas, and publishing/ transmitting these images without the consent of the concerned individual. If found guilty, the criminal would be punished with imprisonment of up to 3 years or a fine, which can extend up to rupees two lakh or both. Section 66F, the section 66F of the Information Technology Act defines punishment associated with cyber terrorism, be it to threaten the unity, integrity, security, or sovereignty of India or to strike terror in the people. In such cases, the cybercriminal would be punished with imprisonment, which could extend to life imprisonment
3.Section 67
Section 67 includes punishment associated with publishing or transmitting obscene material in electronic form, as –
“Whoever publishes or transmits or causes to be published or transmitted in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it, shall be punished on first conviction with imprisonment of either description for a term which may extend to three years and with fine which may extend to five lakh rupees and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to five years and also with fine which may extend to ten lakh rupees.”
b. Information Technology Rules (IT Rules)
The different aspects of data collection, transmission, and processing are covered under this rule as –
It includes details related to sensitive information personal details withheld by entities such as –
Password;
Financial information such as Bank account or credit card or debit card or other payment instrument details ;
Physical, physiological, and mental health conditions;
Sexual orientation;
Medical records and history;
Biometric information;
Any detail relating to the above clauses as provided to the body corporate for providing service;
Any of the information received under the above clauses by the body corporate for processing, stored, or processed under lawful contract or otherwise
This section defines a set of rules, procedures, practices, and sensitive personal data or information which needs to be complied with. Moreover, an audit will be duly conducted once a year or as required.
The Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules, 2021 help in maintaining the safety related to the online safety of data of users, which administer the role of intermediaries or social media intermediaries with the objective to restrict the data transmission on the internet.
It includes guidelines for the cyber cafes to be complied with, and it includes registration of cyber café to generate unique identification numbers, identification of users, and management of physical layout and computer resources, among others.
This Act includes information related to the electronic service delivery of certain services like applications, certificates, and licenses, by electronic means. It specifically emphasizes on the services provided by the government signifying compliance requirements related to the Creation of a repository of electronically signed electronic records by Government Authorities, Procedures for making changes in a repository of electronically signed electronic records, among others.
This Act includes rules related to distinct CERT-In Rules as per Rule 12 of the CERT-In Rules, providing a 24-hour response help desk. This help desk is operational 24 hours to report the cyber security incidents of persons, organizations, and companies, in case they experience cyber attacks.
c.Indian Penal Code, 1860 (IPC)
The Indian Penal Code, 1860 includes mentioned sections to prevent cyber crimes –
This section excises control over punishment related to the publishing or transmission of obscene material or sexually explicit material digitally or electronically. In such case, a fine of 2000 or imprisonment of up to 2 years would be imposed.
It defines punishment related to taking or publishing images of the private parts of a woman, including actions. The section 354C is defined as –
“Any man who watches, or captures the image of a woman engaging in a private act in circumstances where she would usually have the expectation of not being observed either by the perpetrator or by any other person at the behest of the perpetrator or disseminates such image shall be punished on first conviction with imprisonment of either description for a term which shall not be less than one year, but which may extend to three years, and shall also be liable to fine, and be punished on a second or subsequent conviction, with imprisonment of either description for a term which shall not be less than three years, but which may extend to seven years, and shall also be liable to fine.“
It includes provisions associated with cyber stalking are included in this section, including tracking, emailing, including attempts to contact her through digital means or electronically. It is defined as –
“Whoever commits the offence of stalking shall be punished on first conviction with imprisonment of either description for a term which may extend to three years and shall also be liable to fine; and be punished on a second or subsequent conviction with imprisonment or either description for a term which shall not be less than three years but which may extend to seven years and with fine which shall not be less than one lakh rupees:
Provided that the count may, for adequate and special reasons to be mentioned in the judgement, impose a sentence of lesser period of imprisonment than specified minimum imprisonment.“
This section includes punishments related to cheating and dishonesty associated with property delivery, which imposes imprisonment of up to 7 years along with fine for crimes such as fake websites or online or cyber frauds.
Section 463 involves a punishment of 7 years or a fine, or both for the creation of false documents or false electronic records or part of a document or electronic record.
“Whoever commits forgery shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.”
d.Companies Act, 2013
The Companies Act 2013 includes the daily obligations to be complied with by the corporate stakeholders. Each provision associated with the Information Technology Act, 2000 related to electronic records involving the manner and format of electronic recording, as far as it is in variance with the concerned Act would be applicable to records of the electronic form provided under Section 39
Considering that, the Indian government has taken certain initiatives to prevent cyber-attacks or crimes as follows –
Cyber Crime Awareness Booklet on Cyber Security Awareness
Under Cyber Security Awareness, the tips for preventing cybercrime are –
To keep your devices or mobile phones updated with advanced or updated safety patches.
Use the appropriate security software (latest version) to preserve your system or devices.
Always use or download the software or applications from trusted or known sources, and restrict from using pirated software on your system or devices.
Protect your devices or mobile phones with strong PIN codes or passwords and do not share the same with anyone.
Restrict sharing your net banking password, One Time Password (OTP), ATM/ mobile banking PIN, or CVV, among others with anyone, even if someone claims to be an employee of the bank.
Ensure to change the default admin password of the wifi router to a strong one and keep your wireless network encrypted.
Be cautious when using public wifi, including avoiding entering your personal and professional information or details while using these networks.
Use the virtual keyword to access net banking services on public computers and be sure to log out from the same after completion of the online transaction. Moreover, ensure to delete the browser history.
Be certain to scan all the email attachments from viruses prior to opening the emails, including ignoring downloading from untrusted emails.
Be cautious while sharing your identity proof, especially the one which identifies your personal or company identity.
Keep the IMEI code of your mobile in a safe place that can be the only access to you, an operator could blacklist or block or phone using your IMEI code, if your mobile phone is stolen.
Prior to entering your ATM PIN, observe your surrounding and the people around you.
Engaged in a detailed discussion of safe internet practices with your family and friends, including motivating them to follow the same in order to prevent cybercrimes or attacks.
Avoid sharing bank details or card details on e-wallets it enhances the possibility of theft or fraud due to a breach of security.
Contact the concerned authorities instantly if you think your safety is compromised.
Cyber Hygiene for cyberspace
Under the cyber hygiene initiative of the government, the Indian government has introduced some dos and don’ts to be followed in cyberspace emphasizing on different platforms.
Cyberspace is a complex and dynamic environment of interactions among people, software, and services supported by the worldwide distribution of Information and Communications Technology (ICT) devices and networks. The exponential increase in the number of internet users in India clubbed with rapidly evolving technologies has brought in its own unique challenges. Indian Cyber Crime Coordination Centre (I4C) under the Cyber & Information Security (CIS) Division of the Ministry of Home Affairs has prepared this manual to disseminate Cyber Hygiene Best Practices for the benefit of Industrial Bodies/General Public/Government Officials. This should not be considered an exhaustive list of precautions for Cyber Hygiene but baseline precautions that are to be taken.
Computer safety tips
USB device security
Password security management
General Internet Safety Precautions
Financial Transactions – Safe Practices
Social Media Platforms – Safety Tips
Mobile Phone Safety
Malware and E-mail Security Practices
Above mentioned is how the Indian government is promoting cyber security, emphasizing email security practices in social media. However, in the next section, we will describe various steps taken by the government to promote cyber security, especially for students.
Describe Various Steps Taken by the Government to Promote Cyber Security For Students
The cyber-attacks are becoming highly challenging as well as sophisticated nowadays, especially through the usage of social media platforms, emails, chatrooms, and websites, among others.
Email spoofing (a technique used in spam and phishing attacks to trick users into thinking a message came from a trusted person or entity), cyberbullying (using an electronic means of communication to bully an individual), job frauds, banking frauds, identity theft, among others have increased with the time, especially after covid, as it has given a kick start to a new era of digitalization. Though, covid-19 has pushed distinct sectors of the economy to work digitally, which certainly contributes to the growth of the economy, while on the other hand, the same can be seen as a significant cause of the increase in cybercrimes.
Let’s commence with how the Indian government is taking initiatives to prevent cyberbullying is often referred to as cyber harassment under which electronic means are used to bully or harass an individual –
With the understanding of it, let’s move on to how the Indian government is helping in the prevention of cyber-grooming, which is referred to a situation in which an individual, often an adult befriends a child online and builds an emotional connection with the intention of sexual abuse, sexual exploitation or trafficking –
Besides social media, the Indian government, like any other economy is taking appropriate initiatives to prevent cybercrime. Recently, the Central government introduced and launched “Cyberdost” (February 2019) – a Twitter handle that is responsible for creating awareness regarding cybersecurity in order to create awareness regarding the same, @cyberdost has tweeted 1066+ tweets containing videos, images, and creatives providing general safety tips to prevent cybercrimes or attacks.
Besides this, we have to dive a little deep into how the Indian government is promoting cyber security, then we would like to highlight that the Indian government has actively engaged in –
Radio campaigns
SMS sharing with respect to creating awareness against cybercrimes
Publicly publishing videos, images, and creatives providing general safety tips to prevent cybercrimes or attacks
Publication of Handbook emphasizing “cyber safety of adolescents or children”
Publication of Best security practices to reduce or prevent cybercrimes against government bodies
Cyber safety and security awareness are being organized through C-DAC along with Police Department of various states
All such measures have been taken keeping the mission of preventing cybercrime.
Conclusion
Just like the entire world, the Indian economy is also considerate regarding the problems introduced by cyber security. This blog highlighted how the Indian government is promoting cyber security, we would like to emphasize that, be it issuing measures, tips, and practices to be followed to prevent cybercrimes with respective departments or ministries, the Indian government has formed the relevant policies and measures to prevent such hideous actions, which does not only cause loss of money but affects the life of a person.
Besides this, the Indian government has successfully introduced and implemented Acts and schemes to prevent cyber security attacks or crimes, such as Information Technology Act, 2000 (IT Act), Indian Penal Code, 1860, and Information Technology Rules (IT Rules), among others. Also, considering the risk imposed by cyber crimes, the Indian government has appropriately included daily obligations to be complied with by the corporate stakeholders to restrict the same issue. The Indian government has dedicated most of its resources not only to making India a developed country, however, also to preventing the breach of information through incorporating legal and technological advances without compromising digitalization.
The bold and big thinking of Indian leaders is pushing India to become a $30 trillion economy in the next 30 years.
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In a short span of a year, the Indian economy has quickly expanded, from the timely action of the RBI to tame inflation to expanding consumption – India is skyrocketing towards growth and development.
Recently, India has emerged as one of the most powerful countries, since it surpassed the UK to become the 5th largest world economy. However, a question is still being asked whether India can put itself forward as a $30 trillion economy.
Certainly, India holds the potential to become a $30 trillion economy which is clear from the fact that the nominal GDP (GDP at the current rate) has taken a big swing in the April-June quarter, i.e., Rs 64.95 lakh crores, according to the June rupee-dollar exchange rate it stands at $823 billion.
Moreover, it is also claimed that India surpassed the UK’s GDP in March itself, which was $813 billion, while India GDP was $864 billion.
However, as per 2021 April’s GDP outlook report of the International Monetary Fund (IMF), India’s GDP ($3.18 trillion) was right behind UK’s GDP ($3.19 trillion) in 2021. Conversely, it has also been anticipated that India would become a $3.54 trillion economy by the end of 2022 if compared to the UK’s projected GDP which would be $3.38 trillion.
From the estimated data and India GDP growth, it can be seamlessly prognosticated that India will soon become a $3.54 trillion economy by the end of 2022 considering its present growth.
Although, in which year it can become a $30 trillion economy will depend on many factors.
With that, let’s see some facts, how the India GDP surpassed the GDP of the UK?
How India GDP Growth Has Surpassed the UK?
The timing could not have been more auspicious when India emerged as the 5th largest world economy at midnight after the entire country celebrated Azadi ka Amrit Mahotsav, that’s its 75th Independence day. Moreover, after overtaking the UK, India is all set to skyrocket to be the third-largest world economy by 2029.
The path taken by India since 2014 reveals it is likely to get the tag of the third largest economy in 2029, a movement of seven places upward since 2014 when India was ranked 10th. India should surpass Germany in 2027 and Japan by 2029 at the current rate of growth (as per estimated figures).
From the estimated data, it can be safely projected that India has been moving in the right direction, and we can conclude that India GDP rank will surpass the world economic leaders in the coming years.
How India pipped the UK, our colonial rulers –
Due to pent-up demand, the consumption in the service sector is bouncing back, as consumers are stepping out and spending (as per 2019-2020 data). One of the major reasons for the increase in demand is the “ abundance of festivals” celebrated in India.
While the world is on the brink of recession, our economy is growing by 7%.
As per the Finance Secretary, the government is on the pathway to meet the fiscal deficit target of 6.4% (Rs. 16, 61,196 crores) in the current fiscal year ending in March 2023, while currently, it is Rs. 15, 91,089 crores as per revised estimates for 2021-22.
The Real Gross Fixed Capital Formation of the country is expected to grow by 6.8% (2021-22), previously it was -9.8 (2020-21).
Yet, with the commendable achievement of India, one aspect which can not be ignored is, that “the per capita income of India is low, as India ranked 144 positions out of 190 countries.”
It indicates a clear picture of poverty, income disparity, and our inability to account for inflation, wealth, or saving, therefore, even after achieving the milestone of being recognized as the “world’s fifth largest economy” the Indian economy is lagging behind in distinct aspects.
Whether India Will Be Able to Transform Itself Into a $30 Trillion Economy or Not | India GDP Growth
India GDP growth in the last 10 years, reflects a meritorious change, as it jumps to 8.9% in 2021 from 5.5% in 2012, especially after sinking as low as -6.6% in the previous year.
With the magnificent elevation in GDP of India, it can unequivocally be noticed that we are perfectly poised on the passageway to aspire to be a $30 trillion economy in the next 30 years. Though, it seems like a far-fetched dream, yet, beyond doubt it’s not rocket science as with our magical power of demographic dividend, youth power, and power of democracy – India can proudly establish itself as a $30 trillion economy.
Although, India encounters varied stumbling blocks to be finally crowned as a $30 trillion economy, such as –
The Economic Issues in India
1. Low Per Capita Income
Even after 75 years of Independence, India continues to be a developing country, whose one feature is low per capita income. However, in 2020-21 low per capita income has dropped to Rs 1.27 lakh from Rs 1.32 lakh in 2019-20, while in 2021-22 it is estimated to be 1.50 lakh.
Apart from this, the problem of unequal distribution of income exists in India, which is one of the significant contributors and obstacles to economic development.
Proposed solution –
Increase in farmers’ income – India’s 54.6% of the population works in the agriculture sector and historically, India has always kept prices of agricultural products low. However, due to the introduction of schemes like the Farm Acts, the Indian government can allow farmers to earn high profits. Therefore, with the increase in profit of farmers, they can provide support to the other economic sectors through their consumption. For instance, products like fertilizers, working attire, and tools are a necessity for farmers, especially if they are planning to expand their business. So, this increase in expenditure will generate more job opportunities.
Urbanizing India’s rural population – Urbanization drives growth, due to the prominent nature of the Indian agricultural population, moving certain farmers into rural areas could allow them to generate employment and increase agricultural productivity by minimizing the working of a number of farmers on the same land. Therefore, it will help in growing India’s medium-sized cities. Moreover, the Indian government can promote migration by providing incentives to farmers, including investment in infrastructure development and urban services. Further, the new urban population will generate a resurgence of the housing market and provide more lending opportunities to banks. This in return will result in more development and urbanization, thus, would create more international investment and manufacturing export opportunities.
2. Dependence on Agriculture
Over 54.6% of the population is dependent on agriculture to earn a livelihood, which only contributes 20.2% to the national income, reflecting low productivity. Fortunately, in the Union Budget 2022-23, Rs 1.24 lakh crores have been allocated to the Department of Agriculture, Cooperation, and Farmers’ Welfare.
The measures are taken by the government, such as financial and the introduction of policies, positively solve the problem of individuals working in the agriculture sector.
Proposed solution –
Technological advancement – Apart from increasing the farmers’ income and urbanizing India’s rural population (earlier mentioned points), the Indian government can emphasize on the introduction of technologies in agriculture. Since, technology can assist farmers in predicting the climate, decreasing water usage, increasing yield, and their net profit margins. That in return increases India GDP growth rate.
Digital Credit Policy – Though the Indian government has already launched several credit policies to ensure easy access to loans with fewer legal formalities, yet, farmers could not able to avail the benefits of credit. That could be solved by combining easy access to loans with a digital credit policy, under which loan filing would become much simpler.
3. High Population
Another factor, which is the stumbling block in economic development is heavy population pressure. Contemporary, India is the second most populous country, after China, yet, the per capita income of our country is low, which results in income disparity, and the inability to account for inflation, wealth, or saving.
Further, in order to take care of the well-being of the population of the country, the government has to allocate high funds to fulfill basic requirements like food, shelter, medicine, schooling, electricity, hygiene, and more.
Proposed solution –
India can put more emphasis on programs like “AI for Youth” under which youth will be trained to be future-ready for AI development. Therefore, will commence the trend of entrepreneurship and contribute to India GDP growth.
To create “future entrepreneurs” the government can put more emphasis on the improvement of the soft skills of a student which are core for all professionals, rather than emphasizing on traditional studying methods.
Preventing the migration of India’s youth to other countries (to search for better opportunities) can be done through the creation of better jobs in all sectors.
The Indian government could provide subsidiaries to scientists, engineers, and other students (youth) who persist in talents but lack financial support.
Females/ women should be prepared to lead the fields which are considered non-fit for them, that’s how we will have another Sarla Thukral, Mithali Raj, and more.
4. Existence of Under-employment And Chronic Unemployment
Unemployment of any kind is a curse of any economy, be it developed or developing, and being a developing country, India is also encountering similar problems. Therefore, due to the abundance of labor, it is challenging for the government to generate employment opportunities for the entire population.
In addition to that, due to a deficiency of capital, secondary and tertiary occupations are inadequate, which results in under-employment and chronic unemployment.
Proposed solution –
Unemployment is a constant problem in the Indian economy and the Indian government has introduced several schemes to minimize unemployment such as Atmanirbhar Bharat Rojgar Yojana, Pradhan Mantri Rojgar Protsahan Yojana, etc. However, India’s world-beating growth is not creating as many jobs, considering that India should put more emphasis on improving the education system and job training.
Even though the employment rate has increased, employers couldn’t hire due to a lack of skills in freshers. Therefore, there is a need to give importance to the soft skills of students.
The Indian government can invest in the establishment of more industries and infrastructure development projects to minimize under-employment.
Training in the workplace, youth employment services, and career education could be a great way to improve skills, create more entrepreneurs, and allow students to choose the right career.
5. Leisurely Improvement in Rate of Capital Formation
From the beginning, one thing that pertains is a deficiency of capital in India, though, in 2021-22, the Gross Fixed Capital Formation of the country is expected to grow by 6.8%. Therefore, reflecting positive growth, yet, considering the high population growth, India could use better measures to increase the rate of gross capital formation.
Proposed solution –
Saving and investment from household savings or government policy need to be increased by improving the money flow, that in return increases the private investment or fixed asset acquisition. Therefore, increase in gross fixed capital formation.
Resident enterprises in the country can be increased to increase the gross fixed capital formation. For instance, oil extraction occurs in open seas, so the associated fixed capital is allocated to the national territory, in which the relevant enterprises are resident.
The mentioned economic issues have many potential solutions (as mentioned above) and it is no doubt that with time India has made progress in many fields.
Certainly, from the 5 worst economies in the world to the world’s 5th largest economy, India has truly proven it’s worth and how its leaders have been working in all directions to tame the world to see India growing and expanding as a world power.
What Are The Strengths Of The Indian Economy?
India, the fastest growing economy has to realize the strengths of demographic dividend, youth power, and the power of democracy. It is no doubt, from the year 2014 to 2022, India has witnessed tremendous growth in distinct aspects – be it science and technology, innovation, agriculture, the service sector, or digitalization.
Under the leadership of Hon’ble PM Modi Ji, India has built a modern economy, lifted millions of individuals from poverty, become a space and nuclear power, and developed robust foreign policies.
Since 2014, India has come a long way, leaving a string of landmarks, which defines its journey. This section of the blog will trace the strengths of the Indian economy and India will become a $30 trillion economy.
1. Mixed Economy
The Indian economy is a perfect example of a mixed economy, which means private and public both sectors co-exist in India and function smoothly. On one hand, the public sector operates on heavy and fundamental industries, while on the other hand, private sectors have gained importance (due to liberalization).
That provides a model for a “public-private partnership” where both, private and public sectors can work together through the adequate contribution of financial resources, management expertise, technology, and other resources.
2. An Emerging Market
India has emerged as a vibrant economy, which contributes to the stable the India GDP growth rate, even amidst global downstream, India continues to show positive India GDP growth trends, especially with the introduction of policies such as an automatic route for FDI in India, including measures taken by the government to attract domestic and foreign investment such as –
Empowered Group of Secretaries (EGoS) Project Development Cells (PDCs)
Production Linked Incentive (PLI) Schemes
PLI Scheme
Make in India
Investment Clearance Cell (ICC)
One District One Product (ODOP) and more.
All the initiatives taken by the Indian government reflect the high prospect for growth.
3. Expansion in The Role of Agriculture
As mentioned, the largest part of our population is engaged in agriculture, which also contributes to the India GDP growth of the country. The introduction of the “green revolution” and other “bio-technological” improvements in agriculture has made Indian agriculture more efficient and has increased the surplus too.
Including that, government initiatives such as PM Fasal Bima Yojana (PMFBY) (provides insurance on naturally grown crops,) Paramparagat Krishi Vikas Yojana (PKVY), and National Project on Organic Farming schemes – have pushed our agriculture sector towards growth. Moreover, PM Modi Ji’s government has also been working to incorporate AI in agriculture, which will again be an immense step towards development.
4. Service Sector
Due to liberalization and economic reforms India’s service sectors are flourishing, especially with the introduction of schemes like Make in India, and Digital India Mission, including schemes to boost the “12 champion service sectors” that are IT & ITeS, Tourism, and Hospitality, Medical Value Travel, Transport and Logistics, Accounting and Finance, Audio Visual, Legal, Communication, Construction, and Related Engineering, Environmental, Financial and Education – India is truly making immense progression in the service sector.
The service sector is the largest sector in India, estimated to grow by 8.2%.in 2021-22, after a contraction of 8.4% the previous year.
5. Demographic Dividend
The human capital of India is young, which reflects that India is a proud owner of the maximum percentage of youth. The “youth” is not only highly motivated but also the greatest asset of a country, if skilled and trained adequately. And in order to provide diversified training to the youth, Hon’ble PM Modi Ji’s government has introduced schemes such as –
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Craftsman Training Scheme (CTS)
Pradhan Mantri Kaushal Kendras (PMKK)
Scheme for Higher Education Youth in Apprenticeship and Skills.
National Apprenticeship Promotion Scheme.
National Programme for Civil Services Capacity Building.
Green Skill Development Programme.
With the introduction of such programs and schemes, the Indian government is constantly taking measures to train and enhance the skills of youth, in order to create human capital to maximize the growth prospects of the country.
Moreover, the availability of maximum human capital in India attracts investment opportunities in India, hence, contributes India GDP growth.
6. High Purchase Price Parity (PPP)
Purchase Price Parity (PPP) refers to the rates of currency conversion, which tries to equalize the purchasing power of other currencies by obliterating the differences in price levels between countries.
The PPP of India stood at 23.14 in 2021, which reflects that India is one of the countries with the highest PPP. That means that the same product would cost less in India, than in other countries, for instance, the price of the same shoes would be high in the US, say $50 (3,982.53), however, would say Rs 2000 in India.
This opens up the possibility of exports to other countries, since raw materials are economical in India, thereby contributing to India GDP growth.
7. Rapid Growth of Urban Areas
Urbanization is one of the keys to improve the growth of the economy and under the leadership of Hon’ble Narendra Modi Ji several measures have been taken to provide distinct facilities in rural areas such as electricity, schools, employment, banks, and financial institutions, transportation facilities, and more.
Along with that, more scheme has been introduced with the purpose to ensure further development, such as –
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
Shyama Prasad Mukherji Rurban Mission (SPMRM)
Aadarsh Gram Yojana (AGY) :- SAGY, VAGY & SPAGY.
Pradhan Mantri Adarsh Gram Yojana (PMAGY)
Pradhan Mantri Jan Vikas Karyakram (Center 60 : State 40)
Swaranjayanti Khand Utthan Yojana (100 % State
8. Digitalization
Digitalization in India, once a traditional country, is now a home of AI system designers and will soon become an AI hub, especially when the government is taking adequate measures to support digitization. India stands 4th in the largest producer of AI-relevant scholarly papers and has introduced initiatives like AI for Youth (commenced in 2020) to make the youth future ready for AI developments.
Apart from that, our hon’ble PM also talks about making work from home a reality, which will allow more women to participate in the workforce, ensure energy saving, and will allow youth to manage studies and work conveniently.
9. Science and Technology (AI)
India is among one of the top countries in the world and in order to be successful in science and technology, the Indian government has launched schemes like INSPIRE“Innovation in Science Pursuit for Inspired Research” or “Abdul Kalam Technology Innovation National Fellowship”, and other schemes with the purpose to encourage innovation in this sector.
It is no doubt that India is prosperously achieving success through launching Mission mars, or GSAT- 19.
10. Startup Hub
With the introduction of startup culture in India, India is becoming a startup hub, since due to schemes introduced by the Indian government, now startups are receiving concessions, subsidiaries, and more.
Some of the schemes are –
Pradhan Mantri Mudra Yojana.
Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTSME).
Financial Support to MSMEs in ZED Certification Scheme.
Credit Linked Capital Subsidy for Technology Upgradation (CLCSS).
Design Clinic for Design Expertise to MSMEs.
Conclusion
India has overthrown one of the cultural, technological, and scientific leaders by conquering the position of the world’s fifth-largest economy, thereby, reflecting an increase in India GDP growth.
India has always strived hard to adopt the best possible measures and strategies, which are in the interest of the economy as a whole and which have wider political and economic implications for the country and the world. From our track record, we envision the path of a $30 trillion economy, through a constant emphasis on fair and credible policies and measures that will eliminate unemployment issues, improve technological development and infrastructure, ensure adequate utilization of economic resources, and other aspects associated with economic development.
Moreover, under the guidance of our honorable Prime Minister Narendra Modi, India will soon become a $5 trillion economy and will head strategically on the path to becoming a $30 trillion economy.
Has a chatbox ever asked you to open a savings account? Does ever a computerized assistant resolve your queries in minutes?
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In this blog, we will understand how Artificial Intelligence drives the Indian economy.
The world of AI is tremendously booming and it can be seamlessly seen that no industry or sector has remained untouched by its prevalence. And the world of finance and banking is also among those worlds which are also anchoring the power of kick-fast change in AI.
AI is intelligence demonstrated through machines, as opposed to natural intelligence present in humans and animals. It contains streamlined programs and procedures, including its ability to perform automated routine tasks, improve customer service, and assist businesses in achieving success, not only in the financial sector, but also in other sectors such as telecommunications, manufacturing, and more.
Therefore, taking the economy on the path of automation.
Undoubtedly, Artificial Intelligence has been evolving in India since 1950s, from the neonatal stage, when the idea of AI culture had coined to a complete boom state, where AI was intensively being used to store large data, VRs, ARs, and IoTs – India is taking every possible initiative to embed AI in every nook and corner of society.
India’s National Strategy for AI has been prepared by NITI Ayog (a premier policy think tank of the Indian Government through providing directional and policy inputs) to harness the power of AI in distinct fields. AI’s practical and effort approach can adequately address societal needs in distinct aspects of healthcare, agriculture, education, smart cities, infrastructure, smart mobility and transportation.
With the advent of the 21st century, due to its incredible advances in data processing, collection, and computation power, electronics has become ubiquitous in almost every sector, be it the manufacturing or the service sector. Further, AI is now deployed in distinct tasks and decision-making to allow better connectivity and productivity.
Basic Pillars Which Contribute To The Development of AI
Talent
Talent is the strongest pipeline for India to be successful and no doubt, India does have the resources for the same. Since India has the largest youth population in the world (around 66% of the population), and with the Indian government’s emphasis on continual training of a high-skilled workforce, India can soon become an AI hub.
Moreover, India produces twice as many master-level engineering graduates as the United States, which provides it a competitive edge over other countries. And India is moving in the right direction through the introduction of initiatives like AI for Youth (commenced in 2020) to make the youth ready for future AI developments.
Taking this initiative forward, “Responsible AI For Youth 2022” was created by the National E-governance Division, Ministry of Electronics and Information Technology, Government of India in collaboration with Intel. It is launched by the Ministry of Electronics and IT.
Research
India has the largest AI research community in the world and since 2010, it stands 4th in the largest producer of AI-relevant scholarly papers. It provides an edge to India’s youth population to increase their outreach, especially with their counterparts in the United States.
A two-tier integrated approach is introduced to magnify the core and applied research in AI –
Centers of Research Excellence in Artificial Intelligence (CORES), it will emphasize on the core research of AI.
International Center for Transformational Artificial Intelligence (ICTAI), this tier will help in establishing an ecosystem for the application based technological development and deployment.
Patents
Since 2012, India ranks in the 10th position in the top 10 AI patent-producing countries, due to the immense increase in AI-driven inventions. Moreover, personal devices and computing, business, telecommunications, including life science are the four largest categories for AI patents in India.
Collectively, these are associated with over 70% of India’s AI patents and reflect that Indian innovators have emphasized on applying AI to traditional strengths. In the past two decades, India has come a long way in AI patenting, since, the benefit of using patents to protect their devices is reflected.
AI Companies and Investments
More than 50% of Indian companies applying AI to their products are active in business analytics, medicine, finance, sales, retail, and customer relations.
NASSCOM has predicted that by FY 2026, industrial and automotive, healthcare, retail and CPG and BFSI will contribute 60% of possible AI-driven value to India. Moreover, AI companies and investments are continually bouncing back, considering that private companies’ investment in India has witnessed steady growth from 2015 to 2019.
Cloud Computing
India is using market cloud computing as a proxy for AI chips to support its AI computing needs since it does not have the domestic manufacturing capacity to manufacture AI chips. Also, India is lagging behind in cloud computing, yet contemporary, cloud bared markets are growing because of the rising demand for computing power.
Be it talent, research, patents, investment in AI, or cloud computing – India has been moving in the right direction utilizing its population strength by introducing varied initiatives to promote AI in distinct fields.
In addition to that, the government has introduced “AIRAWAT”(AI Research, Analytics, And Knowledge Assimilation Platform) which is a cloud platform for big data analytics and assimilation, with the power-optimized AI computing infrastructure using advanced AI processing.
Apart from that, the Indian government has been investing in other schemes such as Digital India with the purpose to boost AI, IoT, big data, and robotics, including providing subsidies to startups under “Start-up India.”
From the given information, we can easily understand that the Indian government has been working on all aspects to make AI a reality in India, from establishing institutes to providing cloud support and AI research. This in return, is contributing to business growth through financial inclusions since, due to the development of AI in the financial services and sector, students can easily access the loan facility for education, training, or even to establish their business.
How AI is Helping The Financial Services | Contribution of AI in Financial Services To Boost Indian Economy | AI in Financial Services
The field of Artificial Intelligence has enormously evolved since the introduction of revolutionary techniques and algorithms using automated tools. This revolutionized growth of AI in financial services and sectors has significantly been an impetus for the Indian economy.
The majority of banks and financial institutions use and recognize the true benefits of Artificial Intelligence. They are using it to respond to their customers at a faster pace around the clock. Not only does AI help provide a better customer experience, but it also frees up the personnel, improves the security measures of the institutions, and ensures that they are moving in the right direction when it comes to technology.
Here are some of the ways Artificial Intelligence is helping in the financial services and sectors:
1. Risk Assessment and Management
Till now, fintech, banks, and other financial institutions were using human resources to assess and manage their risks. Whether it was loan eligibility checking, trading, or banking, human resources were the way to go.
But with the implementation of AI, these tasks have now become much easier to perform. With the advancement of data sciences and machine learning algorithms, Artificial Intelligence is becoming even smarter in risk assessment and management for financial institutions.
2. Process Automation
One of the best things about an AI is that it can do the same thing again and again without getting tired, in other words – automation. With the help of AI, financial institutions can automate repetitive and mundane tasks with ease and efficiency. This allows valuable human resources to focus on the other important tasks and projects.
3. Reducing Human Error
Humans tend to make mistakes regardless of how experienced or gifted they are. According to recent studies, more than 90% of cloud breaches and financial frauds are caused by human errors. There have been several cases where the loss of valuable data, capital, and resources has been caused by minor human errors.
With the implementation of artificial intelligence, these errors have dropped drastically. In other words, AI reduces human errors and saves valuable data and resources while preventing cyberattacks and frauds.
4. Better Customer Interaction
Virtual assistants (VAs) and chatbots can do what regular human resources can not, they can be available for customers 24/7 and offer relevant solutions. Thanks to the implementation of Artificial Intelligence, chatbots and VAs have become even smarter in their workings.
Of course, the customers of any financial institution still need human interaction to solve difficult problems. Still, thanks to the help of AI, virtual assistants can respond to customer’s needs with minimal effort.
5. Cyberattack and Fraud Detection and Prevention
Any financial institution, whether it is banks, insurance companies, or brokerage firms, they are always in danger of fraud and cyberattack. And it’s not just the business houses themselves, it’s also their customers who are prone to cyber crimes.
However, thanks to the implementation of AI, fraud, and cyberattacks are detected and prevented regularly keeping both the financial institution and its customer safe.
6. Compliance
AI can successfully streamline compliance alert systems to near-perfection, considering that it is built to learn from compliance officers’ data, especially in today’s data-driven compliance environment, AI technology is tremendously improving the efficiency of complianceoperations by lowering expenses.
One of the best examples of “how AI helps in ensuring compliance” could be its usage in IT solutions to address the problem of wasting time and money every day.
Apart from that, Artificial Intelligence successfully automates the workflow, therefore, minimum time and human resources are necessary to support compliance operations. In addition to that, AI minimizes the possibility of human error which could occur due to the availability of a sheer volume of data.
7. Financial Inclusion
With AI and data analytics, financial products are seamlessly available to a large part of the population, even those with no formal bank account, payslip, or digital financial track record.
The access to small financial loans have now become feasible, since the entire process is automated and scalable. In addition to that, fintech companies have found a pathway to monetize the regulatory stumbling blocks which have kept traditional banks from lending money to the poor. With the introduction of AI, the idea of money lending has taken a new shape that’s “data available on customer’s mobile.” Therefore, creating a mobile digital credit score, a reality, which was once a dream.
Financial inclusion has established a new pathway, where a needy person can easily obtain a loan from the banks and financial institutions, thus pushing Indian youth on the path of “entrepreneurship” rather than seeking jobs. Therefore, fulfilling one more agenda of the Indian government that’s “employment generation.”
Such development has marked the emergence of new business models, with traditional banks parenting with fintech to provide digital credit score services, including the emergence of non-bank fintech in a digital lending space.
Apart from that, the use of AI is tremendously increasing to screen loans and select financial product sale recommendations. This is done based on historical data, therefore, eliminating the possibility of prejudice.
Benefiting youth with easy access to loans, AI has become a tool for maximizing the access of financial services to farmers using data and machine learning (major components of AI) algorithms to eliminate the possibility of fraud and allow seamless access of funds to credit-worthy farmers.
That can allow the government to limit farmers’ suicide in India, since easy access to loans and credit facilities will resolve farmers’ problems by ensuring direct access to equipment for irrigation, fertilizers, etc. Therefore, it will result in better cultivation and profit.
AI not only resolves credit and funds-associated issues for farmers, youth, or entrepreneurs, but it also provides financial services/ assistance to startups, MSMEs, and emerging tech companies.
With the introduction of AI, financial inclusion has become a reality, where everyone has access to financial services since it facilitates branchless banking that not only minimizes the cost of banking but also makes financial services accessible.
From AI-based chatbots resolving your query 24*7 to communicate through messaging apps, including educating customers about their financial health, AI has taken over the world.
India is the fastest growing economy with a significant contribution to the development of AI, considering that India has the finest AI research concentrated institutes such as IITs, IIITs, and IISc.
And let’s not forget, that India is home to a highly skilled workforce, which matches the distinct technological market and a large start-up ecosystem that adds to over 77,000 DPIIT-recognized startups accessing 655 districts of the country as of August 2022.
Realizing the potential, the Indian government is also taking the necessary initiatives to steer the country and position it among the top leaders in AI.
Moreover, as per a recent study, AI is estimated to boost India’s annual growth rate by 1.3% by 2035 and has the potential to add 1 trillion to the Indian economy in 2035.
From this data, we can conclude that AI plays an important role in the development of the Indian economy as a whole.
However, with tremendous growth, AI also brings “privacy and data protection issues” which are far from only one. Concerns range from threats to privacy to threats to human dignity and safety.
Artificial Intelligence – Issues
Artificial Intelligence is developing at a fast pace and it seems like it could grow so immensely that it would be challenging for humans to control it. Moreover, AI systems developed by humans are working in every possible intelligence they could, now humans are themselves threatened by its development.
Threat to Privacy
An AI program recognizes speech, understands natural language, and is capable of understanding every conversation via emails and telephone calls. Therefore, the amount of data stored in AI models could impose the risk of data security and privacy violations.
Proposed Solution –
The usage of “state of art encrypted methods” can be used to ensure data security and privacy violations.
The use of “low encrypted cloud software” must be avoided.
Threat to Human Dignity
AI has replaced humans in many industries, however, there is no doubt that in the near future, it will replace humans working in dignified positions such as nurses, surgeons, etc. Therefore, the functions performed by AI systems are a substitute for us (humans) that devalues and deteriorates human flourishing.
Proposed Solution –
Despite massive improvements in AI technology, any minor fault can impose major risk, especially in the case of the use of AI in hospitals. Therefore, the presence of a doctor is essential to avoid such situations.
Software engineers or developers should come up with a hybrid model, where AI technology could assist doctors/ surgeons/ or other practitioners, rather than completely taking over the work. This will prevent the devaluation of human flourishing.
Threat to Safety
AI systems are self-improving and advanced, which can become so mighty in comparison to humans that it could be challenging to prevent them from achieving their goals, which can result in unintentional consequences.
Therefore, AI applications, which are in direct contact with humans or are integrated into the human body, impose safety risks, since they can be misused and hacked.
Artificial intelligence is certainly a blessing, only if used for the right purpose and to minimize interference in human lives.
Proposed Solution –
Strong and unique passwords and two-factor authentication must be used to prevent hacking.
Search engines must be blocked from tracking.
Evict the unused applications and extensions.
Online browsing must be done through a secure VPN.
Conclusion
“India is all set to be an AI hub, with the right acquisition of talent (youth), research, patents, AI companies, investment, and cloud computing.”
From the introduction of metaverse to bitcoins/ cryptocurrency, indeed the world is on a rollercoaster ride of growth and development.
AI can change the financial services and sector completely, by allowing intelligent automation, labor and capital augmentation, and innovation diffusion which will help in ensuring technical feasibility, availability of structured data, regulatory barriers, and other benefits. Maybe someday, AI would be advanced enough to improve human relationships and resolve ethical issues.
India has emerged as the 3rd largest startup ecosystem globally, containing over 77,000 DPIIT-recognized startups across 656 districts of India as of 29th August 2022. As of September 2022, India had a total of 107 unicorns accounting for a valuation of $340.79 billion. The Indian unicorns (a term used to describe a privately owned startup company with a valuation of over $1 billion) are flourishing in a fast manner since these startups are not only developing or proposing innovative solutions and advanced technologies but are also contributing to the employment generation at a large scale.
Moreover, researchers have seen that AI has the potential to add 1 trillion dollars to the Indian economy in 2035. However, this is not the only factor responsible for economic growth. To know more on what are the factors that will lead to a $30 trillion economy, read it on our upcoming blog.
Financial activities of the Non-Banking Financial Companies (NBFCs) are regulated by Reserve Bank of India under the provisions of Chapter III B of the Reserve Bank of India Act, 1934. With the amendment of Section 45 IA of the Reserve Bank of India Act, 1934 in January 1997 and amendment of the National Housing Bank Act, 1987 in August 2019, in terms of Section 29 A of the National Housing Bank Act, 1987, all Non-Banking Financial Companies including Housing Finance Companies (HFCs) have to be mandatorily registered with the Reserve Bank of India.
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Background
Consistent with the policy of giving greater operational freedom to banks in the matter of credit disbursement and in the context of mandatory registration of NBFCs with the Reserve Bank of India (RBI), most of the aspects relating to financing of NBFCs by banks have also been progressively deregulated. However, in view of the sensitivities attached to financing of certain types of activities undertaken by NBFCs, restrictions on financing of such activities continue to be in force.
Gist of the Master Circular
This Master Circular consolidates instructions on the above matter issued up to January 04, 2022 by which more autonomy have been given to NBFCs registered with RBI and is summarized hereunder:
The ceiling on bank credit linked to Net Owned Fund (NOF) of NBFCs has been withdrawn where NBFCs are engaged in principal business of asset financing, loan, factoring and investment activities. Accordingly, banks may extend need based working capital facilities and term loans to all NBFCs and engaged in infrastructure financing, equipment leasing, hire-purchase, loan, factoring and investment activities subject to provisions of para 8 of these guidelines.
Now, banks may also extend finance to NBFCs against second hand assets financed by them.
Banks may formulate suitable loan policy with the approval of their Boards of Directors within the existing/prudential guidelines and exposure norms prescribed by the Reserve Bank of India to extend various kinds of credit facilities to NBFCs.
Provision of financial assistance from Banks to Non-Banking Financial Companies (NBFCs) without Necessitating Registration
In terms of “Master Direction – Exemptions from the provisions of RBI Act, 1934” dated August 25, 2016,“ few categories of NBFCs are exempted from certain provisions of the RBI Act, 1934 including the need for registration with the RBI. Such NBFCs need not to register with the RBI and the banks may take their credit decisions on the basis of purpose of credit, nature, quality of underlying assets, repayment capacity of borrowers and risk perception, etc.
Activities not eligible for Bank Credit
(a.) The following activities undertaken by NBFCs are not eligible for bank credit:
(i) Bills discounted/rediscounted by NBFCs, except for rediscounting of bills discounted by NBFCs arising from sale of commercial vehicles and 2-wheeler and 3-wheeler vehicles subject to the following conditions:
the bills should have been drawn by the manufacturer on dealers only,
the bills should represent genuine sale transactions as may be ascertained from the chassis/engine number and
before rediscounting the bills, banks should satisfy themselves about the bonafides and track record of NBFCs which have discounted the bills.
(ii) Investments of NBFCs in any company/entity by way of shares, debentures, etc. However, need-based credit may be provided to Stock Broking Companies against shares and debentures held by them as stock-in-trade.
(iii) Unsecured loans/inter-corporate deposits by NBFCs to/in any company.
(iv) All types of loans and advances by NBFCs to their subsidiaries, group companies/entities.
(v) Finance to NBFCs for further lending to individuals for subscribing to Initial Public Offerings (IPOs) and for purchase of shares from secondary market.
(b.) Leased and Sub-Leased Assets
Banks can extend financial assistance to equipment leasing companies but they should not enter into lease agreements departmentally with such companies as well as other NBFCs engaged in equipment leasing.
Bank Finance to Factoring Companies
Banks can extendfinancial assistance to the Factoring Companies which comply with the following criteria with the restrictions mentioned at Paragraph 4.1 (i) and 4.1 (iv) above if:
(a) The companies qualify as Factoring Companies and carry out their business under the provisions of the Factoring Regulation Act, 2011 with notifications issued by RBI from time to time.
(b) They derive at least 50% of their income from factoring activity,
(c) The receivables purchased/ financed, irrespective of whether on ‘with recourse’ or ‘without recourse’ basis, form at least 50% of the assets of the Factoring Company ;
(d) The assets/ income referred to above would not include the assets/ income relating to any bill discounting facility extended by the Factoring Company,
(e) Credit limits extended by the Factoring Companies is secured by hypothecation or assignment of receivables in their favour.
Bank Finance to NBFCs not permitted for:
Bridge loans/interim finance
Banks should not grant bridge loans of any nature or interim finance against capital/debenture issues and/or in the form of loans of a bridging nature pending raising of long-term funds from the market by way of capital, deposits, etc. to all categories of NBFCs.
Advances against collateral security of shares to NBFCs
Shares and debentures cannot be accepted as collateral securities for secured loans granted to NBFC borrowers for any purpose.
Restriction on guarantees for placement of funds with NBFCs
Banks not to execute guarantees covering inter-company deposits/loans thereby guaranteeing refund of all type of deposits/loans accepted by NBFCs/firms from other NBFCs/firms. However, banks are permitted to provide Partial Credit Enhancement (PCE) to bonds issued by NBFC-ND-SIs and Housing Finance Companies (HFCs) as per guidelines contained at para 2.4 of the Master Circular on Guarantees and co-acceptances dated November 09, 2021 as updated from time to time.
Prudential ceilings for exposure of banks to NBFCs
(b.) Banks’ exposures to a single NBFC (excluding gold loan companies) will be restricted to 20 percent of their eligible capital base (Tier-I capital). However, based on the risk perception, more stringent exposure limits in respect of certain categories of NBFCs may be considered by banks. Banks’ exposures to a group of connected NBFCs or group of connected counterparties having NBFCs in the group will be restricted to 25% of their Tier-I Capital.
(c.) The exposure of a bank to a single NBFC which is predominantly engaged in lending against collateral of gold jewellery (i.e., such loans comprising 50% or more of their financial assets), shall not exceed 7.5% of the bank’s capital funds (Tier-I plus Tier-II Capital). However, this exposure ceiling may go up to 12.5% of banks’ Capital Funds if the additional exposure is on account of funds already lent by such NBFCs to the infrastructure.
(d.) Banks may also consider fixing internal limits for their aggregate exposure to all NBFCs put together.
(e.) Banks should have an internal sub-limit on their aggregate exposures to all NBFCs, having gold loans to the extent of 50% or more of their total financial assets, taken together. This sub-limit should be within the internal limit fixed by the banks for their aggregate exposure to all NBFCs put together as prescribed in paragraph 7.4 above.
(f.) Infusion of eligible Capital Funds, after the published balance sheet date, may also be taken into account for computing exposure ceiling subject to obtaining an external auditor’s certificate on completion of the augmentation of capital and its onward submission to RBI (Department of Supervision) before reckoning the additions to Capital Funds.
Restrictions regarding investments made by banks in securities/instruments issued by NBFCs:
(a.) Banks not to invest in Zero Coupon Bonds (ZCBs) issued by NBFCs unless the issuer NBFC builds up sinking fund for all accrued interest and keeps it invested in Government bonds.
(b.) Banks are permitted to also invest in Non-Convertible Debentures (NCDs) with original or initial maturity up to 1-year issued by NBFCs. However, while investing in such instruments, banks should be guided by the extant prudential guidelines in force, ensuring the disclosure of the purpose for which the NCDs are being issued in the disclosure document and such purposes are eligible for bank finance.
Conclusion
In view of policy measures to build scale and enhance NBFC’s contribution in
Global Trade significantly, RBI has brought the master circular, efforts have been made to ease financing to needy borrowers through NBFCs while sensitivities attached to financing have simultaneously been taken care of. We hope this masterstroke would definitely accelerate the trade and economic activity as is expected by Government of India.
Please also refer to previous Master Circular DBR.BP.BC.No.5/21.04.172/2015-16 dated July 1, 2015 on the captioned subject.
For more details on the topic, you may refer to Master Circular no RBI/2021-22/149/ DOR.CRE.REC. No.77/21.04.172/2021-22 dated January 05, 2022 of RBI or access the author at https://www.sunilkumargupta.com/ to explore more on other related topics.
During speech at the conference on 18th November, 2021 on ‘Creating synergies for seamless credit flow and economic growth’, our Prime Minister said “Indian banks are strong enough to play a major role in imparting fresh energy to the country’s economy, for giving a big push and making India self-reliant. I consider this phase as a major milestone in the banking sector of India”.
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On this great occasion I wish to congratulate the Hon’ble Prime Minister on behalf of the industry, for suggesting various measures to commercial banks for easing out loan delivery process for providing better opportunities to business enterprises and start-ups. Our country’s outlook is now to intensify and spread the economic activities by providing hassle free loans to entrepreneurs. In the post Covid scenario, RBI’s role has to play an important role for boosting up economic activities and encouraging the banks to sanction loans at easy terms.
Prime Minister reiterated that banks have sufficient liquidity and coupled with the fact that now there is no backlog for provisioning of NPAs as NPAs in public sector banks are at the lowest compared to the five years back and this has led to upgrading of outlook for the Indian Banks by the International agencies. The Prime Minister said that apart from being a milestone, this phase is also a new starting point and called upon the banking sector to support the wealth creators and job creators. The Prime Minister empathetically said “It is the need of the hour for the banks of India to work proactively to bolster the wealth sheet of the country along with their balance sheets”.
PM urged bankers to identify the productive potential of citizens and go beyond the traditional banking when it comes to nourish their business intelligence and entrepreneurial dreams with quick release of loan funds. PM further stressed upon the need to go away with the feeling that lender is approver and customer is an applicant or receiver. Instead of waiting for the customers to come and seek loans, bankers have to come forward to analyse the credit appetite of both existing and potential customers and provide consultancy services with customized solutions and unified policies. In this way, banks have to adopt the model of partnership in which both partners share the benefits.
The Prime Minister said that due to recent implementation of various schemes, a huge pool of data is now available in the country. The Prime Minister emphasized that the banking sector must take advantage of this facility. He also listed the opportunities presented by the flagship schemes like PM Awas Yojana, Svamitva and Svanidhi and asked banks to participate and play their proactive role in these schemes.
Prime Minister said the scale at which corporates and startups are coming forward today is unprecedented and it is the opportune time to strengthen, fund, invest in India’s economic aspirations.
Some Highlights of Hon’ble PM’s Speech
Reduction In NPA
He quoted detailed reports while saying that NPA ratio of public sector banks has now come down to the lowest during last 5 years and they are flushed with liquidity. PM quoted that public sector banks have recovered around 5 lakh crores of bad loans during last years but such news did not make headlines in core media due to illegitimate activities of some defaulters.
Need For Massive Credit Push
Inspite of the current Covid situation, it is assumed that economy will recover at growth rate of 8.7% to 10.5% during current fiscal. This study sounds good but a massive credit push is essential for businesses to remain operational without hindrance and to expand to new horizons.
Studies have also found that growth rate of non-food bank credit has increased to 6.8% in September, 2021 as compared to 5.1% during same period last year. Industrial loans however have seen the growth of only 2.5%. CARE ratings also hint that weekly average (net) liquidity surplus in banking system grew from Rs.4.5 lakh crores at the end of June, 2021 to around Rs.7.5 lakh crores as of September-end.
Time For Action To Contribute to Economy
Bank’s participation in the growth of nation’s economy is undeniable. Banks maintain strict protocols while sanctioning loans. This exercise makes entrepreneurs to wait for long period and delay the process for unwanted reasons. Bankers must overlook traditional methods to approve loans.
PM assures the banks with dependable words and announced to provide all possible help. It is however important for loan seekers to maintain all records and provide all necessary documents for faster disbursal of loan funds.
Make Loan Dispensation Process Easy And Time Bound
He also appreciated the proposal to set up the web-based project funding tracker. This proposal will make all ministries and banks to work in tandem. PM also suggested adding this proposal as an interface to Gati Shakti Portal. Faster loan disbursal process will also help to effectively cope with other big challenges of unemployment and fund crunch.
In view of the abovementioned facts, it may be safe to conclude that the Government is fully committed to support Indian economy by promoting businesses and providing easy availability of funds through banks. It becomes pertinent for banks to be proactive in considering genuine loan requests and make sure that the funds sanctioned are being used only for the said purpose. Misuse of bank funds may land customer and/or concerned authorities into trouble and may attract various penal actions.
Non-Banking Financial Companies (NBFCs) have been growing in size and have substantial interconnectedness with other segments of the financial system. Reserve Bank of India had introduced a PromptCorrective Action Framework (PCA) for Scheduled Commercial Banks in 2002 and the same has been reviewed from time to time based on the experience gained and developments in the banking system. Accordingly, RBI has now decided to put in place a PCA Framework for NBFCs to initiate and implement remedial measures in a timely manner so as to restore its financial health for strengthening the supervisory tools applicable to NBFCs.
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The PCA Framework for NBFCs, as summarized hereunder, comes into effect from October 1, 2022 based on the financial position of NBFCs on or after March 31, 2022. The objective of the PCA Framework is to enable supervisory intervention at appropriate time and is intended to act as a tool for effective market discipline. The PCA Framework does not preclude the Reserve Bank of India from taking any action as it deems fit at any time in addition to the corrective actions prescribed in the framework.
A. The PCA framework is applicable to the following category of NBFCs:
All Deposit Taking NBFCs [Excluding Government Companies] (NBFCs-D)
All Non-Deposit Taking NBFCs in Middle, Upper and Top Layers 3 (NBFCs-ND),
[Including Investment and Credit Companies, Core Investment Companies (CICs), Infrastructure Debt Funds, Infrastructure Finance Companies, Micro Finance Institutions and Factors]; but [Excluding – (i) NBFCs not accepting/not intending to accept public funds 4; (ii) Government Companies, (iii) Primary Dealers and (iv) Housing Finance Companies].
B. For NBFCs-D and NBFCs-ND, Capital and Asset Quality would be the key areas for monitoring in PCA framework. For CICs, Capital, Leverage and Asset Quality would be the key areas for monitoring in PCA framework.
C. For NBFCs-D and NBFCs-ND, indicators to be tracked would be Capital to Risk Weighted Assets Ratio (CRAR), Tier-I Capital Ratio and Net NPA Ratio (NNPA). For CICs, indicators to be tracked would be Adjusted Net Worth/Aggregate Risk Weighted Assets, Leverage Ratio and NNPA.
D. A NBFC will generally be placed under PCA framework based on the audited Annual Financial Results and/or the Supervisory Assessment made by the RBI. However, the RBI may impose PCA on any NBFC during the course of a year (including migration from one threshold to another) in case the circumstances so warrant.
E. The Reserve Bank of India may issue a press release when a NBFC is placed under PCA as well as when PCA is withdrawn vis-à-vis a NBFC.
F. Breach of any risk threshold may result in invocation of PCA as detailed under:
For NBFCs-D and NBFCs-ND (excluding CICs):
Indicator
Risk Threshold-1
Risk Threshold-2
Risk Threshold-3
CRAR
Up to 300 bps below the regulatory minimum CRAR [currently, CRAR <15% but ≥12%]
More than 300 bps but up to 600 bps below regulatory minimum CRAR [currently, CRAR <12% but ≥9%]
More than 600 bps below regulatory minimum CRAR [currently, CRAR <9%
Tier I Capital Ratio
Up to 200 bps below the regulatory minimum Tier-I Capital Ratio [currently, Tier-I Capital Ratio <10% but ≥8%]
More than 200 bps but up to 400 bps below the regulatory minimum Tier-I Capital Ratio [currently, Tier-I Capital Ratio <8% but ≥6%]
More than 400 bps below the regulatory minimum Tier-I Capital Ratio [currently, Tier-I Capital Ratio <6%]
NNPA Ratio (including NPIs)
>6% but ≤ 9%
>9% but ≤12%
>9% but ≤12%
For Core Investment Companies (CICs)
Indicator
Risk Threshold-1
Risk Threshold-2
Risk Threshold-3
Adjusted Net Worth/Aggregate Risk Weighted Assets
Up to 600 bps below the regulatory minimum ANW/RWA [currently, ANW/RWA <30% but ≥24%]
More than 600 bps but up to 1200 bps below regulatory minimum ANW/RWA [currently, ANW/RWA <24% but ≥18%]
More than 1200 bps below regulatory minimum ANW/RWA [currently, ANW/RWA <18%]
Leverage Ratio
≥2.5 times but <3 times
≥ 3 times but <3.5 times
≥3.5 times
NNPA Ratio (including NPIs)
>6% but ≤ 9%
>9% but ≤12%
>12%
G. Exit from PCA and withdrawal of restrictions under PCA – Once a NBFC is placed under PCA, taking the NBFC out of PCA framework and/or withdrawal of restrictions imposed under the PCA framework will be considered: a) if no breaches in risk thresholds in any of the parameters are observed as per four continuous quarterly financial statements one of which should be Annual Audited Financial Statement (subject to assessment by RBI), and b) based on supervisory comfort of the RBI including an assessment on sustainability of profitability of the NBFC.
H. The menu of corrective actions is as below:
Mandatory and Discretionary actions
Specifications
Mandatory actions
Discretionary actions
Risk Threshold – 1
1. Restriction on dividend distribution/remittance of profits,2. Promoters/shareholders to infuse equity and reduction in leverage,3. Restriction on issue of guarantees or taking on other contingent liabilities on behalf of group companies (only for CICs)
Common menuSpecial Supervisory ActionsStrategy RelatedGovernance RelatedCapital RelatedCredit Risk RelatedMarket Risk RelatedHR RelatedProfitability RelatedOperations/Business RelatedAny Other
Risk Threshold – 2
In addition to mandatory actions of threshold: Restriction on branch expansion
Risk Threshold – 3
In addition to mandatory actions of threshold 1 & 2,1. Appropriate restrictions on capital expenditure other than for technological upgradation within board approved limits2. Restrictions/reduction in variable operating costs
Common Menu for Selection of Discretionary Corrective Actions by the RBI are mentioned below:
Special Supervisory Actions
Strategy Related Actions
Governance Related Actions
Capital Related Actions
Credit Risk Related Actions
Market Risk Related Actions
HR Related Actions
Profitability Related Actions
Operations Related Actions
Any other specific action that the RBI may deem fit considering specific circumstances of the NBFC.
RBI would initiate suitable corrective actions including in particular mandatory and discretionary actions to check the wrong doings of the companies. Corrective measures are summarized in brief i.e. may conduct Special Supervisory Monitoring Meetings at quarterly or other identified frequency, special inspections/targeted scrutiny of the NBFC, restricted and need based regulatory/supervisory approvals, review short-term strategy, medium-term business plans, identify achievable targets and set concrete milestones for progress and achievement, may recommend to promoters/shareholders to remove and bring in new management/board, restriction in expansion of high risk-weighted assets, preparation of time bound plan and commitment for reduction of stock of NPAs, restrictions on branch expansion plans, PCAs would prove to be a milestone in the history of NBFCs and RBI will definitely have more control over NBFCs and would protect interest of the public funds at large.
For more details on the topic, you may refer to circular no RBI/2021-22/139DoS.CO.PPG. SEC.7/ 11.01.005/2021-22 dated Dec. 14, 2021 of RBI or access the author at: www.sunilkumargupta.com/ to explore more on other topics.
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