Tag: economy

  • Revised RBI’s priority sector lending norms to further boost economy: SBI report

    Reserve Bank of India.

    Revised RBI’s priority sector lending norms to further boost economy: SBI reportIANS

    The recent amendments in priority sector lending (PSL) guidelines by the Reserve Bank of India (RBI) should further help the economy grow faster and fine tune the building blocks of the factors of productions, mainly the MSMEs, agri and allied sectors, housing and exports, etc, a report by SBI Research said on Wednesday.

    The RBI this week issued revised guidelines on PSL to facilitate better targeting of bank credit to the priority sectors of the economy. The new guidelines will come into effect from April 1.

    According to the report, the revised PSL guidelines cater to enhancement of several loan limits, including housing loans, for enhanced PSL coverage and broadening of the purposes based on which loans may be classified under ‘Renewable Energy’.

    There is also a revision of the overall PSL target for urban cooperative banks (UCBs) to 60 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBSE), whichever is higher.

    “The higher limits set in housing segment should give a fillip to low cost/affordable housing across various population cohort, in particular tier-IV/V/VI cities wherein the banks, along with non-bank players, can find their next gold mine given the surge in demand for own/individual housing post pandemic,” the report noted.

    Explicit recognition and prioritisation of renewable energy within the PSL framework has alleviated credit constraints, thereby escalation in the share of non-conventional energy credit to the overall energy credit, encouraging credit flows to the NCE sector that witnessed significant policy interventions too, the SBI report mentioned.

    SBI, State Bank Of India,

    Revised RBI’s priority sector lending norms to further boost economy: SBI reportIANS

    “As big banks continue facing problems in achieving PSL targets, it would be a prudent move to include all infrastructure loans given to Road projects, Port, Railways, Airports, Energy Sector Highways, etc. either as priority sector status or be exempt from calculation of ANBC for PSL achievement in line with infra bonds raised towards funding of infrastructure and affordable housing,” according to the report.

    The RBI has also increased the loan limit for the repairs of damaged dwelling units in the revised circular.

    This opens new opportunities for credit disbursement for FIs in one of the most secured niche areas, also lessening the burden on home-owners in search of liquidity to carry over the necessary repairs of their dwelling units in need and thus opens up a substantial market for credit off take, the report said.

    With its 500 GW non-fossil fuel installed capacity target for 2030 and Net Zero target for 2070, India has embarked on one of the most extensive renewable energy expansions in the world.

    On July 1, 2015, RBI had expanded the ambit of PSL norms to include loans up to Rs 15 crore to borrowers for purposes like solar-based power generators, biomass-based power generators, continue, micro-hydel plants and for non-conventional energy (NCE) based public utilities.

    The limit was subsequently raised to Rs 30 crore per borrower on September 4, 2020.

    In the recent guidelines, the limit was raised to Rs 35 crore per borrower. For individual households, the loan limit will continue to be Rs 10 lakh per borrower.

    “Though the increase of Rs 5 crore appears to be small as compared to the revision made in last 2020 (five-year period), the small policy interventions definitely will go long way, for the NCE sector, to achieve dual objective of clean energy and PSL by boosting lending to the sector,” said the SBI report.

    (With inputs from IANS)

  • Indian economy in robust spot globally in 2025 with high frequency indicators picking up growth

    Stable political scenario, favourable policy, infra push to drive Indian economy in 2025

    Indian economy in robust spot globally in 2025 with high frequency indicators picking up growthIANS

    As 2025 begins on a note of heightened global uncertainties ahead of the US President-elect Donald Trump’s inauguration, India continues to be in a much stronger position with high frequency indicators showing a pick up in the pace of growth in the third quarter of current fiscal (Q3 FY25), according to a report on Thursday.

    GST collections, services purchasing managers’ index (PMI), air passenger growth, and vehicle registrations saw a notable improvement in Q3 versus Q2, according to a Bank of Baroda (BoB) report.

    On the other hand, in China, while the manufacturing sector is expanding slowly, lifting domestic consumption and reviving the real estate sector is proving to be a task for the administration.

    The US economy is giving mixed signals regarding growth. While the labour market appears to be softening and manufacturing activity is weak, retail sales, pending home sales, and the service sector seem to be doing well. In Europe, manufacturing activity is unable to pick up pace so far, while the service sector is regaining ground.

    In India, the current account deficit (CAD) narrowed to 1.2 per cent of GDP in Q2 FY25 from 1.3 per cent of GDP in Q2 FY24.

    “While the trade deficit was higher, buoyant services exports as well as continued strength in remittances underscored the lower CAD. Our year-end market analysis shows that both Sensex and Nifty 50 surged by 8.7 per cent and 9 per cent in CY24. Sensex touched an all-time high this year as it breached the mark of 85,500,” said Sonal Badhan, economist, Bank of Baroda.

    Sectors including real estate, consumer durables, and IT were amongst the best-performing stocks in CY24. The Indian rupee depreciated by 2.8 per cent in 2024, but remained one of the better-performing currencies among its peers.

    Indian stock market set to ride on strong economic growth in 2025

    Indian economy in robust spot globally in 2025 with high frequency indicators picking up growthIANS

    The pressure on yields was lower and boosted demand flow as the market witnessed the bond inclusion in the JP Morgan emerging market index, Bloomberg, and FTSE Russel.

    According to the report, high frequency indicators have shown notable improvement in the October-December 2024 period. GST collections have jumped by 8.3 per cent (YoY) in Q3 to Rs 5.5 lakh crore, and are also up from Rs 5.3 lakh crore in Q2, signalling further improvement in consumption pattern.

    Apart from this, helped by festive demand, other indicators of urban consumption have also improved. Air passenger air traffic registered 11.6 per cent growth in Q3, compared with 7.8 per cent growth registered in Q2. Services PMI averaged 59.2 in Q3 versus 58.1 in the same period last year.

    “We expect quarterly corporate results to also show improved performance in Q3,” said Badhan.

    On the central bank actions, the report said growth is expected to recover in H2 FY25 and inflation abating, “we see a scope of 25 bps rate cut in February 2025. We expect a cumulative easing of 50-75bps in the current cycle”

    Furthermore, with the expectation of a pick-up in government spending followed by improvement in both government and private investment in H2, the IIP growth will perform a lot better in H2 FY25 from H1 FY25, it noted.

    (With inputs from IANS)

  • Space economy to grow nearly 5 times to $44 billion in next decade: Minister

    Space economy to grow nearly 5 times to $44 billion in next decade: Minister

    IANS

    The Indian space economy is set to grow nearly 5 times from $8.4 billion to around $44 billion in the next decade, Union Minister of State for Science and Technology, Dr Jitendra Singh, has stressed.

    Investments in the sector reached Rs 1,000 crore in 2023 alone, placing India as a frontline player globally. India’s space sector has also emerged as a significant foreign exchange earner.

    Of the 220 million euros earned through launching foreign satellites, 187 million euros was generated in the last eight years. Countries benefiting from ISRO’s services include the US, France, Japan and others.

    Hailing ISRO’s Space Docking Experiment (SPADEX) mission, Dr Singh said that this achievement places India on par with global leaders in space docking technology.

    The SPADEX mission is a pivotal project by ISRO aimed at developing and demonstrating technologies for spacecraft rendezvous, docking, and undocking using two small satellites.

    Jitendra Singh

    IANS

    “These capabilities are critical for future missions, including satellite servicing, space station operations, and interplanetary exploration,” the minister told reporters in the national capital.

    The primary objectives of SPADEX, said the Minister, include Demonstrating technology for spacecraft rendezvous and docking, Showcasing controllability in docked conditions to extend the life of target spacecraft and Testing power transfer between docked satellites.

    The mission also includes post-docking activities, with spacecraft conducting independent payload operations.

    According to Dr Singh the docking is expected to occur on January 7, 2025, at noon.

    The minister also highlighted a significant collaboration between the Department of Biotechnology and ISRO to explore the application of biology in Space.

    “Under Prime Minister Narendra Modi‘s leadership, India will lead in ‘Space-Biology’ by studying physiological changes in space environments,” he stated.

    The 2023 New Space Policy allowed private sector participation in ISRO’s activities. This policy has led to a surge in space startups, growing from a single-digit count in 2021 to nearly 300 in 2023.

    Notable startups include AgniKul Cosmos, which established a private launchpad on ISRO premises, and Skyroot, which executed India’s first private sub-orbital launch.

    “These startups are reinforcing ISRO’s infrastructure and attracting global attention from companies like SpaceX,” Dr Singh remarked.

    (With inputs from IANS)

  • Stable political scenario, favourable policy, infra push to drive Indian economy in 2025

    Stable political scenario, favourable policy, infra push to drive Indian economy in 2025

    Stable political scenario, favourable policy, infra push to drive Indian economy in 2025IANS

    After a resilient performance in 2024 amid geo-political headwinds, the Indian economy is poised to be supported by a stable political scenario, favourable policy environments, the effects of production-linked incentive (PLI) programmes, possibilities brought about by changes in the global supply chain and government emphasis on infrastructure spending.

    The Central government is focused on growth through direct investments in the budget as well as through reforms like GST (increasing tax to GDP), lower corporate tax and ease of doing business (attracting private capex), and private capital through incentives for import substitution or export ecosystem creation.

    A Canara Robeco Mutual Fund’s report “Unfolding Perspectives” on Tuesday said that for 2025, corporate and bank balance sheets are in the best possible shape to drive capex and credit respectively, as consumer spending remains resilient.

    “We anticipate easing of the lag effect caused by the rise in global commodity prices, both for food and non-food items,” according to the report.

    Domestic institutional investment (DII) flows are as meaningful as FPI flows, with retail flows increasingly being directed in markets through insurance, EPFO and MFs.

    “Current monthly SIP book of MFs in India is Rs 25,300 crore which should provide good support to the markets, in case we witness continued foreign institutional investment (FII) withdrawals,” the report mentioned.

    India poised to lead emerging markets, cement its position in global economy by 2035: S&P Global

    Most domestic macro and micro indicators remain steadyIANS

    The Indian macro remains strong among large markets except for the growth part. The Current Account Deficit (CAD) has improved significantly and is expected to be 1 per cent for FY25.

    Robust services exports and healthy remittances flow should help keep the country’s CAD in the safe zone during the current financial year (FY 2024-25), according to a Crisil report.

    “We expect CAD at about 1.0 per cent of GDP in fiscal 2024-25, as against 0.7 per cent last year. In addition, the impact of geopolitical issues will remain monitorable,” the report stated.

    Most domestic macro and micro indicators remain steady. Given these aspects, the domestic equity market remains focused on earnings, according to industry experts.

    Government spending has resumed, employment is on the rise, and supply bottlenecks are lessening.

    According to industry watchers, the domestic stock market in 2025 is set to ride on strong economic growth and government efforts to boost infrastructure and digital innovation.

    “Sectors like capital goods, technology, financial services, consumption, and healthcare are expected to shine, with emerging areas such as semiconductors, electronic and manufacturing, renewable energy and electric mobility grabbing more attention,” said Deepak Ramaraju, Senior Fund Manager, Shriram AMC.

    (With inputs from IANS)

  • Navigating the Blockchain Economy: Lessons from Siva Aditya Kancherla

    Siva Aditya Kancherla

    Siva Aditya Kancherla embodies the spirit of innovation, risk-taking, passion, and an unwavering belief in the transformative potential of blockchain technology. A software engineer turned visionary entrepreneur, his story is one of the most inspiring journeys from Silicon Valley to the blockchain frontier. It is not just a tale of personal triumph but also a guide for aspiring entrepreneurs navigating the unpredictable landscape of the crypto economy.

    From Big Tech to Blockchain
    Siva’s journey began with a solid educational foundation. After earning his Master’s degree in Computer Science from the University of Wisconsin-Madison, he worked at Oracle in India and interned at Amazon during his graduate studies. However, it was at Google Cloud in Sunnyvale, California, where his entrepreneurial ambitions began to take shape.

    In 2017, Siva made a bold move that attracted attention: he invested his entire Google 401(k) into cryptocurrency. This audacious decision showcased his deep confidence in blockchain’s potential and his belief that big rewards require big risks. His calculated gamble paid off, providing him the financial freedom to focus entirely on developing groundbreaking projects in the blockchain sector.

    Leaving behind the security of a prestigious role at Google, Siva launched a series of innovative startups that have left a lasting impact on the blockchain industry:

    • Picolo: A decentralized database for web3 applications that raised $2.2 million in seed funding led by Menlo Ventures and Village Global.
    • Mavrik Labs: Backed by Binance Labs, this venture simplified NFT creation on Ethereum, making blockchain technology more accessible.
    • Infinity: An NFT marketplace aggregator that secured $3 million in funding to revolutionize the NFT ecosystem with a streamlined and user-friendly platform.

    Lessons from Siva’s Journey: Thriving in the Crypto Economy
    Siva’s journey offers invaluable insights for anyone aiming to succeed in the volatile and fast-evolving crypto economy. Here are the key lessons inspired by his path:
    1. Embrace Calculated Risks
    Siva’s decision to invest his retirement savings in cryptocurrency was not reckless; it was the result of thorough analysis and a clear understanding of blockchain’s potential. In the unpredictable world of crypto, critical evaluation of risks is essential for success—whether investing in tokens or building a blockchain startup.

    2. Leverage Financial Independence for Innovation
    By achieving financial security early, Siva was able to dedicate his time and energy to developing impactful projects without the constraints of short-term financial pressures. Financial independence fosters long-term thinking and enables entrepreneurs to focus on innovation.

    3. Bridge the Gap Between Technology and Accessibility
    Through ventures like Mavrik Labs and Infinity, Siva worked to make blockchain technology more user-friendly and accessible to everyday consumers. Simplifying complex systems is key to driving widespread adoption in the blockchain ecosystem.

    4. Adapt to Market Dynamics
    The crypto economy is constantly evolving, requiring entrepreneurs to stay agile and pivot when necessary. Siva’s ability to adapt his strategies to align with trends such as NFTs exemplifies the importance of flexibility in navigating this volatile industry.

    5. Cultivate a Visionary Mindset
    Siva’s success is rooted in his belief in blockchain’s potential to revolutionize industries and society. Leaving a high-paying corporate job to pursue decentralized technology was a testament to his vision. True leadership in the blockchain space requires thinking beyond personal gains to focus on creating a broader impact.

    Siva’s Legacy and the Future of Blockchain
    Siva’s contributions to the blockchain ecosystem have earned him widespread recognition. From winning the Prathibha Scholarship in his formative years to being accepted into prestigious programs like Binance Labs and Tachyon Accelerator, his achievements demonstrate a consistent track record of excellence. In 2023, he was invited to serve as a judge and mentor at events like CalHacks and Techstars AI Startup Weekend, further solidifying his role as a thought leader in the field.

    Looking to the future, Siva emphasizes the need for the blockchain industry to address key challenges and opportunities, including:

    • Sustainability: Developing energy-efficient blockchain solutions to mitigate environmental impact.
    • Interoperability: Enhancing connectivity between blockchains and distributed ledgers for improved functionality.
    • Regulation: Striking a balance between compliance and fostering innovation.
    • Inclusivity: Expanding blockchain’s reach to underserved communities to ensure equitable benefits.

    Conclusion
    Siva Aditya Kancherla’s transition from a corporate tech worker to a trailblazing blockchain entrepreneur exemplifies the power of vision, calculated risk-taking, and a relentless pursuit of innovation. By leveraging his financial freedom and focusing on accessibility, he not only achieved personal success but also advanced the broader cause of decentralized technology. His journey serves as both an inspiration and a roadmap for navigating the dynamic crypto economy.

  • How AI Is Transforming the Global Economy: Opportunities and Challenges

    Artificial intelligence

    This is the age of AI – it is advancing at a breakneck speed, propelling the world economy and inserting us into a wholly different level of technological sophistication. As AI technologies scaled up, businesses saw huge promise, but daunting challenges as well. This article will look into how various fields are being introduced to AI, one such field is the online casino industry, and how that will have an impact on the economy.

    Opportunities Presented by AI

    Companies are achieving maximum efficiency and productivity ever, because of the businesses boosting up with Artificial Intelligence integration. This has the effect of freeing a company’s human resources to focus on other important processes by automating repetitive work. AI Algorithms, for example, are capable of analyzing vast quantities of data to optimize supply chains, control inventory levels, and predict market trends with greater accuracy. It also means faster responses to consumer needs and market changes, which can be a significant competitive advantage for businesses.

    In some industries, such as manufacturing, AI is helping to create new patterns in global value chains. Companies are bringing production back closer to consumer markets, reducing costs and delivery times. This becomes even more apparent in North America and Europe, where AI technologies are revamping domestic manufacturing.

    One industry that demonstrates how AI can improve customer experience and operational efficiency is the online casino industry. Machine learning algorithms enable online casinos to study player behavior and personalize the gameplay and marketing experience. This customization experience increases engagement and retention, ultimately resulting in increased revenue.

    More significantly, AI’s economic ramifications are immense. AI, according to research, could add as much as $19.9 trillion to the global economy by 2030, through productivity gains across many sectors. Estimates show that every additional dollar spent on AI produces between $4 and $4.60 of economic output, making it a very powerful driver of growth.

    Challenges of AI Integration

    While AI has its advantages, developing a new economy around these capabilities is challenging. One of the biggest fears is job loss due to automation. It creates new jobs in data analysis and machine learning, but it has also been predicted that it will take away jobs that are primarily repetitive in nature. The switch could leave many behind unless workers get the skills for future sectors.

    There is also the question of ethics in the use of AI. We need to ensure that the technology serves the public good and deals with issues like data privacy, algorithmic bias, and the transparency of AI decision-making processes. Regulations need not subdue innovation—they should help policymakers and business leaders collaborate to create regulations that encourage responsible AI.

    Another problem comes from uneven technology uptake across regions and industries. Certain sectors that are short on either resources or expertise have been slow in adopting AI advancements compared to others. Such uneven adoption may deepen existing economic disparities internally and across countries.

    Final Words

    Artificial intelligence is the most promising and powerful technology of this century. Still, it likewise carries challenges we will need to navigate. The future will rely upon how well we manage the deployment of this tech to ensure fair results for everyone affected by these transformations.


    Neel Achary

  • $2.2 trillion in infra investment to help India become $7 trillion economy by 2030; Report

    25 pc hike in Centre's capex to spur growth in second half of 2024-25: Report

    25 pc hike in Centre’s capex to spur growth in second half of 2024-25: ReportIANS

    An estimated investment of $2.2 trillion into infrastructure development is imperative to support India’s GDP size to expand to $7 trillion by 2030, according to a report on Thursday.

    To achieve an economic size of $7 trillion, India’s economy is required to grow at a CAGR of 10.1 per cent between 2024-2030, according to the report by Knight Frank India.

    The investment opportunity for private participation in infrastructure development in India ranges between $103.2 billion to $324 billion.

    “India stands at the cusp of a transformative era in infrastructure development. By harnessing the power of private investment, we can accelerate our journey towards achieving our ambitious economic growth targets,” said Rajeev Vijay, Executive Director-Government and Infrastructure Advisory, Knight Frank India.

    The central government aims to reduce its gross fiscal deficit to below 4.5 per cent by 2025 and increasing private sector participation in infrastructure development would help balance fiscal deficit targets.

    At an existing investment share composition of Centre (51.2 per cent), state (44.1 per cent), private (4.7 per cent), the estimated gross fiscal deficit in 2030 will be 4.7 per cent, which is above the government’s defined fiscal deficit threshold.

    In this scenario, the private participation in infrastructure development in India amounts to $103.2 bn until 2030. However, the share of private investment in this composition is negligible and needs to expand.

    Pradhan Mantri Awas Yojana (PMAY) scheme has provided affordable housing to low-income families in India

    Investment opportunity for private participation in infrastructure development in India ranges between $103.2 billion to $324 billionIANS

    However, an 10 per cent top up in private investments in infrastructure to 14.7 per cent brings the potential opportunity amount to $324 billion, an annual average of $54 billion until 2030.

    This will potentially support the government to maintain healthy fiscal balances.

    By increasing the private participation in infrastructure development, the government can redirect the expenditure towards other key segments of economic growth such as public healthcare, strengthening human capital, debt payments, etc which will support long-term growth of the economy, said the report.

    On a sector-wise analysis, renewable energy, data centres, roads and highways, warehousing and logistics have significant potential to attract private investments.

    Supported by a rapid urbanisation and shifting demographics, sectors such as urban mass transit, airports, power distribution, etc, hold massive investment opportunities, the report mentioned.

    “For India to achieve its ambitious economic growth targets, massive infrastructure investments are necessary,” the report added.

    (With inputs from IANS)

  • ESDM Industry: India’s New Digital Economy Backbone

    Indian ESDM industry projected to surpass Rs 9 lakh crore by FY28

    Indian ESDM industry projected to surpass Rs 9 lakh crore by FY28IANS

    India’s electronics system design and manufacturing (ESDM) industry is on a trajectory of rapid growth, with projections indicating a surge from Rs 2.09 lakh crore in FY23 to a staggering Rs 9.09 lakh crore by FY28E. This represents a compound annual growth rate (CAGR) of 34 per cent, according to a recent report by PL Capital Group – Prabhudas Lilladher. The ESDM sector, which forms the backbone of the digital economy, is witnessing a paradigm shift. The industry’s addressable market, valued at Rs 4.39 lakh crore in FY23, is seeing a gradual increase in reliance on ESDM partners by original equipment manufacturers (OEMs).

    The growth of the ESDM industry is not an isolated phenomenon. It is a reflection of the larger trend of increasing demand for electronics, both domestically and globally. India’s large and expanding domestic market is a fertile ground for the growth of the ESDM industry. The ‘China +1′ strategy, which encourages businesses to consider countries other than China for their manufacturing needs, is also contributing to the industry’s growth. Government initiatives are playing a crucial role in propelling the industry forward. The production-linked incentive (PLI) scheme and investments in semiconductor development are significant government initiatives that are fuelling the growth of the ESDM industry.

    The domestic printed circuit board assembly (PCBA) market is another segment that is expected to witness significant growth. The market, valued at Rs 2.31 lakh crore in FY23, is projected to reach Rs 6.55 lakh crore by FY26E, clocking a CAGR of 41.6 per cent. The growth of the PCBA market is driven by factors such as increasing value addition, rising global demand for electronics, and the need for high-speed assembly and miniaturisation. India is capitalising on this growth opportunity by incentivising contract manufacturers and expanding its manufacturing capabilities. This strategy is expected to boost PCBA exports, further enhancing India’s role in the global supply chain and strengthening its position as an electronics manufacturing hub.

    Electronics players seek comprehensive support for local TV manufacturing

    ESDM firms can leverage economies of scale to adapt to technological changes and negotiate better with suppliersIANS

    The report by PL Capital Group – Prabhudas Lilladher has initiated coverage on four domestic ESDM companies – Avalon Technologies, Cyient, Kaynes Technology and Syrma SGS Technology. These companies are well-positioned for growth, supported by diverse sector penetration, strong order books, and strategic expansion plans. The growth of the ESDM industry is a win-win situation for both OEMs and ESDM firms. As OEMs delegate manufacturing to ESDM partners, they can concentrate on marketing and post-sales services and growth initiatives. On the other hand, ESDM firms can leverage economies of scale to adapt to technological changes and negotiate better with suppliers.

    The Indian ESDM industry is poised for exponential growth, driven by a confluence of factors such as increasing demand for electronics, government initiatives, and a shift in manufacturing strategies. The industry’s growth will not only boost India’s economy but also enhance its role in the global supply chain. The future of the ESDM industry looks promising, with opportunities for growth and innovation abound.

  • Petrol, diesel, jet fuel sales surge in Nov as economy picks up

    Petrol, diesel, jet fuel sales surge in Nov as economy picks upIANS

    India’s petrol, diesel and jet fuel sales shot up in November this year compared to the same month last year, reflecting the higher level of economic activity in the country, data compiled by the public sector oil companies showed.

    Petrol sales of Indian Oil, Bharat Petroleum and Hindustan Petroleum jumped by 8.3 per cent to 3.1 million tonnes in November compared to 2.86 million tonnes of consumption in the same month last year due to the increase in demand for the fuel during the festive month. The government-owned oil giants account for over 90 per cent of sales of fuels.

    Similarly, the consumption of diesel went up by 5.9 per cent to 7.2 million tonnes during November due to the increased movement of goods on highways and rising demand from the farm sector as the rabi crop sowing season was in full swing.

    Reserve Bank of India (RBI) has also maintained its GDP growth forecast for the current fiscal year at 7.2 per centIANS

    Jet fuel (ATF) sales increased by 3.6 per cent year-on-year to 6,50,900 tonnes during November due to the increase in air travel in the country. This was also 2.3 per cent higher month-on-month when compared with 6,36,100 tonnes of fuel sold in October.

    LPG sales were also up 7.3 per cent year-on-year at 2.76 million tonnes in November as more households have switched to cooking gas under various schemes for the welfare of the poor introduced by the government.

    The increase in economic activity is also reflected in the surge in overall GST collections in November which recorded an 8.5 per cent jump to Rs 1.8 lakh crore. This is the fourth-highest monthly collection ever.

    The Finance Ministry’s monthly economic review also mentions a rebound in many high-frequency indicators of economic activity, including rural and urban demand, and supply-side variables like the Purchasing Managers’ Index and E-way bill generation.

    On the employment front, the formal workforce is expanding, with notable increases in manufacturing jobs and a strong inflow of youth into organised sectors, it added.

    The Reserve Bank of India (RBI)has also maintained its GDP growth forecast for the current fiscal year at 7.2 per cent.

    “India’s growth story remains intact as its fundamental drivers — consumption and investment demand — are gaining momentum. Prospects of private consumption, the mainstay of aggregate demand, look bright on the back of improved agricultural outlook and rural demand. Sustained buoyancy in services would also support urban demand,” RBI Governor Shaktikanta Das said while presenting the latest monetary policy review.

    (With inputs from IANS)

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  • Covestro and Deloitte’s Innovative Monetization Framework for the Circular Economy

    Developing and implementing business models in the circular economy

    The monetization approach for circular solutions developed together with Deloitte’s structured basic framework established

    Framework validated through pilot projects, scalable across industries

    WirtschaftsWoche honors collaboration and jointly developed an innovative framework with an award

    GERMANY: Covestro is focusing on the entire value chain to create value for customers for accelerating the circular economy and also a monetization framework that enables investments in the circular economy. Innovation Projects and Circular Solutions that receive investment must be economically viable. This can only be achieved through the interplay of consumers, producers, regulation, and technical solutions. To achieve this, new approaches to the market launch of products and solutions are needed, as well as the development of employee skills and expertise.

    To this end, Covestro and Monitor Deloitte 2023 launched a joint project entitled “Monetize Circular Economy”. This collaboration enabled Covestro to incorporate relevant methods and external perspectives into the entire development process.

    The project pursued two main objectives. Firstly, to develop a scalable framework for market entry and commercialization of more sustainable, circular products and solutions. Secondly, to create added value in partnership. This includes, for example, developing solutions with customers so that they in turn can create added value for their customers with more sustainable solutions. These are, for example, working out end customer-relevant purchasing arguments or jointly implementing increasing sustainability standards. Covestro’s projects from various business entities formed the basis for developing a model.

    A joint project team consisting of employees from various Covestro business entities and a mixed team from Deloitte led by chemicals expert Kai Göbel and Dr. Amadeus Petzke, Head of Pricing & Monetization, initially collected concrete projects on circular solutions across the Group. Three selected pilot projects formed the basis for the development of a marketing and business development approach that serves both as a blueprint for monetizing Covestro’s circular products and for new business development at Deloitte.

    “Circular solutions must be profitable to be implemented. Economic incentives that motivate or demotivate stakeholders must be identified and addressed. For this, we need circular thinking, deep market understanding, and the creativity of our employees. We need a robust framework that our colleagues can use as a guide to drive business development in the circular economy. We are continuously developing this framework,” says Sucheta Govil, Chief Commercial Officer at Covestro.

    WirtschaftsWoche 2024 has now honored this approach with the Best of Consulting Award in the Chemicals, Pharma & Healthcare sector.

    Value creation cycle as the key

    A decisive factor in monetization is the integration of the entire value chain, away from individual value creation steps and towards thinking in terms of a circular economy. “It’s not just about selling circular products, but about creating sustainable added value along the value chain together with partners and customers. Designing a framework based on specific Covestro industrial projects from start to finish was an exciting project. Winning the award is a great accolade and shows that we have succeeded,” says Bozidar Radner, Deloitte’s global key account manager for Covestro and Sector Head Chemicals. The management consultancy Deloitte was able to draw on extensive customer experience and requests from previous projects and learnings.

    Development of the framework

    Over one hundred Covestro employees identified key requirements for the monetization of circular solutions. In a structured approach consisting of four lab phases with coaching and review meetings in between, the teams successfully drove the pilot projects forward; at the same time, the insights gained led to the further development of the framework. Methodologies, case studies, and their importance, as well as the correct sequencing of a project’s progression, were explored and refined throughout the project, with real circular economy pilots forming the basis. An overarching project team from Covestro and Deloitte developed an internal platform for Covestro that provides resources, best practices, and tools such as ideas for customer outreach and legal guidelines for all Covestro business entities.

    The result: a structured approach to accelerate the commercialization of circular solutions. This also includes raising awareness among the workforce. An accompanying webinar series, for example, promotes global exchange with internal circular economy (CE) experts and drives the further development of the market entry and commercialization strategy. In concrete terms, implementing the monetization approach in the operational business also means incorporating the circular economy mindset into the initial customer exchange jointly identifying added value, and developing solutions in partnership-based customer discussions. For example, there are “Monetize CE Pioneers”, a group of employees at Covestro who are available to colleagues around the world and who exchange information on their specialist areas and contribute their knowledge of various industries.

    The vision of the circular economy and successful monetization are thus continuously developed.