Innholdsfortegnelse for 15 September 2024 i Business Today

Around this time last year, Prime Minister Narendra Modi spoke exclusively to Business Today and outlined his vision for India in the backdrop of India’s G20 presidency. Rooted in that vision was the idea that it was India’s moment to seize, and a number of factors were coming together to help India claim pride of place on the world stage. A year later, as India moves confidently towards 2047—the hundredth year of Independence—it is clear that the march towards India@100 will be powered by some distinctly visible trends. Let’s consider the facts. With a GDP growth rate of 8.2% in FY24, beating all estimates, India is the fastest-growing major economy in the world. And only recently, the International Monetary Fund (IMF) has upped India’s growth forecast to 7% from the…

DESPITE THE GLOBAL headwinds, the Indian economy seems to be in a sweet spot for now. Gross domestic product (GDP) growth is widely seen at over 7% for FY25. There are hopes of a revival in rural consumption demand due to a good monsoon. Inflation is on a downward trajectory and high-frequency indicators such as collections from the goods and services tax and industrial production are showing positive trends. This is also evident in the Business Today-C Fore Business Confidence Survey of 500 chief executive officers (CEOs) and chief financial officers (CFOs) for the April-June 2024 quarter (Q1FY25). The Business Confidence Index (BCI) rose to 55.6 in Q1FY25, after dipping in the previous quarter (Q4FY24) to 54.3. The reading for Q1FY25 was also the second highest since Q1FY16. The BCI…

1 AFTER DEFICIT RAINFALL IN JUNE AND JULY IN THE CRUCIAL INDOGANGETIC PLAINS—THE FOOD BOWL OF INDIA—RAINS HAVE PICKED UP IN AUGUST 2 ABOVE-AVERAGE RAINFALL IN THE LAST FEW WEEKS IS BELIEVED TO HAVE MADE UP FOR THE INITIAL DEFICIT IN EAST & NORTHWEST INDIA 3 POOR DEMAND FOR CONSUMER GOODS ITEMS AMONGST RURAL HOUSEHOLDS SINCE 2021 HAS BEEN THE KEY CONCERN FOR THE ECONOMY 4 MANUFACTURERS AND ECONOMISTS ALIKE ARE BETTING HEAVILY ON A GOOD MONSOON TO LIFT DEMAND AND REVIVE THE RURAL ECONOMY 5 CONSUMER GOODS MAKERS ARE EXPECTING A REVIVAL IN DEMAND IN THE SECOND HALF OF FY25, AS BETTER YIELDS WILL RAISE PURCHASING POWER, ESPECIALLY OF RURAL HOUSEHOLDS…

Address by Shri Sanjiv Puri, Chairman & Managing Director, ITC Limited Edited Excerpts 113th Annual General Meeting, ITC Limited, July 26, 2024 Every new beginning evokes new hopes and aspirations. As the NDA 3.0, led by the Hon'ble Prime Minister, Shri Narendra Modi, begins a new term, the commitment to forge ahead with redoubled energy on its journey to a Viksit Bharat is evident. The Union Budget presented by the Hon'ble Finance Minister, Smt Nirmala Sitharaman, commendably focusses on unleashing inclusive growth with macro-economic stability. ITC has, over decades, lived by its abiding vision to create larger value for its stakeholders and serve national priorities. This pledge, enshrined in our credo of Nation First: Sab Saath Badhein, is manifest in multidimensional endeavours The creation of world-class Indian brands that retain…

At 1.44 billion and growing, India is currently the world’s most populous country The sheer number means an attractive market for companies and investors, which will power India’s growth story This also means the need for productive jobs, health, education and old-age security The government is focussing on manufacturing, insurance, housing, urbanisation to meet the needs of the population More measures are required to ensure thar the demographic dividend doesn’t turn into a burden…

MARKET GROWTH India’s consumer market, currently valued at over $800 billion, ranks fourth globally and is expected to become one of the Top 2 markets by 2047 GROWING BASE With 435 million consumers, India is second only to China, while the US ranks third with 240 million consumers DEMOGRAPHIC DIVIDEND India’s young population, especially those aged 20-33, is a key driver of increased discretionary spending GOING PREMIUM Rising affluence and demand for premium products, especially in urban areas, are reshaping the FMCG sector RURAL PUSH Rapid rural consumption growth is narrowing the rural-urban divide, with India’s rural consumer base expected to outpace China’s…

Under your leadership, NSL has added several feathers to its cap, including getting NSL listed on the Bombay Stock Exchange in February 2023. What did it take to achieve this milestone? It has been a stupendous journey for NSL, which has stood tall and strong on its feet, with the listing of NMDC Steel Limited (NSL) on the Bombay Stock Exchange in February 2023 standing out as a particularly notable achievement. This milestone marked a new chapter in NSL's growth. As a separate entity now focused on steel production, NSL's listing not only strengthened its market position but also aligned with India's ambitious goal of reaching a 300 million tonnes steel production capacity by FY30. This listing resonates with NMDC's broader objectives and success, including being the first mining company…

India, commanding one of the largest and powerful Armed Forces in the world, has confronted complex security dynamics owing to its history and geography. Achieving strategic autonomy in the highly critical defence sector has acquired urgency to fortify national security and territorial integrity. The country's Tri-Services undergoing comprehensive modernisation, have augmented their operational readiness by inducting new-generation platforms, state-of-the-art weapons and systems in alignment with the flagship 'Make-In-India' drive aimed at defence indigenisation. As contemporary warfare evolves rapidly with swift advancements in modern military technology, a unique, state-of-the-art weapon BRAHMOS in the arsenal of India's Tri-Services has hugely bolstered the country's security architecture. The supersonic cruise missile with its unparalleled parameters of range, precision, firepower, maneuverability and stealth, has positioned itself as a powerful 'game-changer' in modern war dynamics. The…

The founders of Becquer Energy, are on a daring mission to harness and catapult solar power to the forefront as the planet's premier and most cost-effective power source for supporting sustainability. India serves as a dynamic partner for the team to translate their formidable expertise in solar engineering to sculpt products meticulously tailored to meet both brand goals and the increasing energy demands of a humongous consumer base. The electrifying partnership is all the more significant as India is exploring options to reduce the burden of exorbitant fuel import costs and dependency on China's energy dominance, as well. In 2023, India generated 113 billion units (BU) of solar power in 2023 compared to Japan's 110 BU and surpassed the 'Land of the rising sun' to become the world's third-highest producer…

WHAT WILL BE the state of the stock markets in 2047? Reading the tea leaves makes one thing clear: the next 23 years are going to be an exciting ride for India. Over the past three decades, the equity markets in India have undergone a remarkable transformation—evolving from desktops to smartphones and from ring-based to algorithm trading—defying all expectations. Going ahead, there are expectations that the economy could reach $30-35 trillion by 2047. This growth could potentially be beneficial for equity investors as more and more of them are flocking to the markets. Analysts predict a strong stock market ecosystem in India by 2047, supported by favourable demographics, technological progress, and economic expansion, making it an ideal destination for investment. Manoj Bahety, Founder & Fund Manager, Carnelian Asset Management &…

AS 2047, THE centenary of India’s century of Independence draws closer, the dream of a fully developed economy and sustainable, inclusive growth seems to be taking shape. What role could artificial intelligence, or AI, play in this India? The poster child of technology for the past decade and becoming increasingly accessible to all, AI holds the promise of new economic opportunities, the potential to improve welfare services in healthcare and education for every Indian, and the allure of India emerging as the provider of AI to the world. This could be a natural progression from India’s current dominance worldwide in the information technology and business process management (IT-BPM) sector. A cornerstone of the economy, the sector employed over 5.4 million people in 2022-23 and has captured more than 30% of…

India is becoming a major player in space exploration, with government investments boosting space technology and infrastructure The space sector is using the public-private partnership method to address challenges in infrastructure and funding Space missions are expanding, with new missions to Mars and the Moon being announced The satellite launch market is growing with cheaper options coming in now India’s share of the global space economy will go up to 8% by 2030, from 2% in 2021…

Tech-driven Healthcare India’s healthcare is advancing with AI and telemedicine to improve access and patient care Universal Coverage Expansion: Government initiatives aim to broaden healthcare coverage, making advanced treatments more accessible nationwide Personalised Medicine Growth Advances in genomics and biotechnology are driving the shift towards more tailored and effective treatments Pharma Sector Expansion: The industry is focussing on innovative therapies and sustainable practices to address major health issues Diagnostics Improvement Point-of-care and digital diagnostics are enhancing accuracy and accessibility Infra Enhancement Development of smart hospitals and improved infrastructure is aimed at bridging urban-rural healthcare gaps…

INDIA’S JOURNEY SINCE Independence is nothing short of extraordinary. In just 76 years, our young nation has transformed itself with remarkable socio-economic progress. Poverty has declined dramatically, literacy rates have soared, and life expectancy continues to rise. The vision of becoming a developed nation, or Viksit Bharat, by 2047 is not just an aspiration but a collective mission. The groundwork is laid. Now, it’s time to accelerate this momentum. India’s digital revolution is in full swing. Initiatives like the JAM trinity (Jan-Dhan Yojana, Aadhaar, and Mobile Telephony) and the success of the Unified Payments Interface (UPI) are laying the foundation for a robust digital economy. Complementing these are large-scale infrastructure projects like BharatNet, Sagarmala, and Bharatmala, which are enhancing connectivity and logistics, making India a fertile ground for economic growth.…

THE GOVERNMENT HAS envisioned a remarkable goal for India@100: Viksit Bharat—a developed India. The nation undoubtedly has the potential to achieve this, with favourable tailwinds in demographics, domestic consumption potential, open economy frameworks, and technological adoption capacity. To realise this vision, India must invest in several force multipliers, one of which is its start-up ecosystem. India’s technology-driven startup ecosystem is a testament to the determination of Indian entrepreneurs. The country hosts the third-largest start-up ecosystem globally, with over 138,000 ventures that have created $550 billion in value, including 115 unicorns and nearly 500 soonicorns. By 2027, the ecosystem is projected to create $1 trillion in value, host 200-plus unicorns, and employ more than 3.5 million specialised workers. As the ecosystem continues to expand, start-ups are emerging as one of India’s…

REVIEW There’s a certain romance to a film camera—the click of the shutter, the whirr of the film advancing, the anticipation of seeing the developed photos. Nikon understands this sentiment and has tried to channel it into the Zf, a full-frame mirrorless camera draped in the garb of their iconic FM2 film SLR. The Zf looks gorgeous with its chamfered edges, engraved dials, and sleek black finish. The retro looks hide a capable, modern heart. The 24MP full-frame sensor—also used in the Z6 line of mirrorless cameras—delivers excellent image quality, with vibrant colours and impressive detail. The autofocus function, bolstered by Nikon’s 3D tracking, is a notable improvement over previous Z6 models. Even video, often an afterthought in retro-inspired cameras, gets a significant boost with 4K recording at up to…

CAPITALISM IS NOT WORKING for any generation, however, because it has been twisted into a distorted form. An expanding state is undermining economic freedom and individual opportunity worldwide…,” so writes Ruchir Sharma in his latest book, What Went Wrong with Capitalism. No stranger to how big business, governments, and central banks work, Sharma—who is the Chairman of Rockefeller International and Founder of investment firm Breakout Capital that focusses on emerging markets—writes about how capitalism has been changed and, in fact, ruined over the years by the use of easy money, often as sops and bailouts. Low interest rates, easy money, government intervention in crisis after crisis leading to high deficits have often created the perils of capitalism that we are seeing today. The prologue of this fifth book by Sharma…

IN LIMBO INDIA AND BANGLADESH TRADE SURGED 165% OVER THE PAST DECADE, REACHING ₹1.07 LAKH CRORE. THE RECENT CIVIL UNREST, LEADING TO THE OUSTER OF FORMER PM SHEIKH HASINA, COULD HAMPER THIS MOMENTUM. HERE ARE SOME KEY NUMBERS: 426 PER CENT Surge recorded in India’s imports from Bangladesh in the past decade to ₹15,268 crore in FY24 ₹4,932 CRORE Worth of ready-made garments imported from Bangladesh in FY24, followed by textiles and engineering goods ₹91,614 CRORE Value of India’s total exports to Bangladesh in FY24, up 145% in the past 10 years SOURCE CMIE ECONOMIC OUTLOOK…

WE ARE LIVING in a pivotal era that will shape the future of India’s history. Over the next five years, India is poised to surpass Japan and Germany, emerging as the third-largest economy globally, following only China and the United States. At the glorious occasion of our 78th Independence Day, we can proudly say that India has made impressive strides in its growth and development trajectory. We are rapidly emerging as a power to reckon with, both politically and economically. Global agencies like the IMF predict a decade of high growth, maintaining India as the fastest-growing nation for the years to come. In our path to become a Viksit Bharat by the 100th year of Independence in 2047, it’s crucial to reassess our approach and address the gaps that remain.…

TODAY, INDIA IS a consumption economy and a consumer society, and this will accelerate during this decade as the country’s economy grows and more segments of the population acquire greater purchasing power. Hence, in this context, it is crucial to understand the history of consumerism in India. Consumerism is rooted in Keynesian thought, based on the logic that consumer spending is a key driver of the economy. Today, more than 60% of India’s GDP is driven by consumption—similar to the US. Consumerism represents the democratisation of consumer wants and desires, leading to social status. The first surge in consumerism occurred in the US after World War II. Between 1945 and 1949, Americans purchased 20 million refrigerators, 21.4 million cars, and 5.5 million stoves. The emergence of the US as a…

AT A TIME of significant geopolitical uncertainties, the India growth story has proven remarkably resilient. The world’s fifth-largest economy is well-positioned to remain the fastest-growing major economy, supported by its diversified and cost-competitive industrial base, robust domestic consumption, and thriving start-up ecosystem. At Temasek, we recognised India’s long-term potential early on. This year marks 20 years of active investment, with a total portfolio exposure of $37 billion. We expect to add up to an additional $10 billion over the next three years if we identify the right opportunities. As we sought to grow our portfolio based on emerging trends, we began exploring economies in Asia beyond Singapore. India was among the markets entering a phase of rapid growth, driven by its expanding middle-income population. The country had implemented economic reforms…

INDIA’S VISION FOR a ‘Viksit Bharat’ by 2047 calls for all stakeholders to work in cohesion, doubling down on efforts to unlock the nation’s true potential. While the government must continue addressing bottlenecks and creating pathways for growth and prosperity, delivering these outcomes remains a key responsibility of the industry. With this objective, the Federation of Indian Chambers of Commerce and Industry (FICCI) has outlined four key priorities for the year that align with the goals of Viksit Bharat. We have been actively engaging with our members to drive this agenda forward in order to deliver meaningful results. MAKE IN INDIA For India to emerge as a global manufacturing hub and a “product nation,” domestic manufacturing must undergo a significant transformation. Our aim should be to increase the global share…

AGAINST AN EXTREMELY uncertain global backdrop and rising geopolitical risks, India has increasingly been in the spotlight as the fastest-growing major economy. I am highly optimistic about the future of our economy. India’s economic growth has exceeded global expectations, driven by a confluence of factors such as sound government policies, strong macroeconomic fundamentals, inherent domestic demand, timely regulatory interventions, and ongoing reforms that have ensured long-term growth. India’s key differentiating factor is its scale and pace of growth. It took India 60 years to become a $1-trillion economy in 2007. The next major leap came eight years later in 2015 when the Indian economy doubled to $2-trillion. Since then, growth has accelerated dramatically despite the brief disruption caused by Covid-19. By the end of this year, India will be nearly…

A COMBINATION OF policy foresight, technological advancements, and a youthful demography is set to transform India’s stock market by 2047. This growth is happening on the back of significant expansion that is being witnessed over the past two decades, largely driven by increased participation from domestic institutional investors (DIIs) and retail investors in the post-Covid period. To give an example, the market valuation of BSE-listed firms has surged 45 times, reaching over ₹450 lakh crore ($5 trillion) as of August 2024, compared to ₹10 lakh crore in 2003. If the economy continues to grow steadily, India’s equity market could sustain this upward trajectory. Projections indicate that the Indian economy could reach $30-35 trillion by 2047, assuming an 8-9% growth rate, potentially elevating India to developed economy status. With a market…

A western template of Industry 4.0, which involves replacing humans with automation, is unlikely to be effective in India While technologies like AI and ML are used now in India, the challenge is always to make them relevant to the manufacturing process The government’s investments in reducing logistics costs and improving infrastructure are positives in transforming India into a global manufacturing hub The need for specific skills will gain more importance as manufacturing gets more sophisticated Experts demand more robust government policies to propel investment in Indian manufacturing…

The Maritime Amrit Kaal Vision 2047 pegs the total investment opportunity at ₹80 lakh crore over the next 25 years It aims to create four port clusters with capacity equal to or more than 300 MTPA, and two with capacity of 500 MTPA or more Setting up transshipment hubs at Vizhinjam and Galathea Bay, both with 20 metre deep draft Targets increasing India’s share of transshipment cargo to 95% by 2047 from the current 32% It also aims to enhance the modal share of coastal shipping and inland waterway transport from 109 MTPA in FY22 to 500 MTPA by 2047…

IN ASPIRING TO be a developed country by 2047, India is trying to achieve in less than 60 years what took most of the current set of advanced economies three to four times as long. That means average growth needs to be three to four times the pace at which those economies grew as they progressed to prosperity. Exact replication of social and economic choices made by them would be unwise, as they made mistakes, too, and in any case, the economic environment today is different. Let us start with the tailwinds. First, the further away one is from the technology frontier, the easier it is to grow rapidly initially. For example, in the US, the transition from no telephony to 4G data occurred over more than a hundred years.…

REIMAGINING ENTERTAINMENT Entertainment in a new India has films, sports, fantasy games, music, and live events, among others BIG NUMBERS 1,800 films across languages released last year, and a large chunk of that came from Bollywood and the South OTTs—THE NEW DESTINATION Over 600 million people watched the Indian Premier League on streaming apps NEW CHALLENGES A highly segmented audience and a plethora of options make entertainment a very challenging business WHAT’S IN STORE Digital and technology are likely to drive consumer preferences for a long time, along with high levels of disruption…

With an increase in consumer purchasing power, luxury retail is likely to expand to Tier II cities such as Jaipur and Ludhiana by 2047 Gen Z will be middle-aged consumers by 2047 and there is likely to be an even more increased focus on sustainability. Luxury will not just be about owning the best but also about investing in what resonates personally and culturally with them Over the next two decades, there will be many more ‘Made in India’ luxury brands going global Going forward, factors such as the growing economy, salary growth from the high-paying services sector and growth in the number of HNIs and UHNIs will continue to raise demand for luxury housing in India Indian luxury travellers will become more global in their thinking and will be…

ONDC allows businesses to be visible across multiple buyer applications once they join the network, eliminating the need to manually register on each platform. It saw a dramatic increase in transactions, growing from 1,200 in January 2023 to 12 million in July 2024 The success of ONDC depends on widespread participation from both sellers and buyers, which will enhance the network’s potential. As of now, ONDC faces significant competition from dominant players like Flipkart and Amazon, and its current market penetration is only 4.3% ONDC has the potential to empower marginalised communities and entrepreneurs, although a significant knowledge and accessibility gap persists…

THE 21ST CENTURY is facing one of the most pressing humanitarian crises in modern history: The Global Housing Shortage. The UN projects that by 2030 nearly 3 billion people—about 40% of the global population—will require access to new housing units. This staggering demand translates into a need for nearly 96,000 new affordable and accessible housing units every single day. Meeting this demand will require an estimated investment of $3–4 trillion. This challenge transcends financial considerations and is both a moral imperative and a social obligation. The scale of this crisis presents a unique and multi-decadal investment opportunity that could redefine the global real estate landscape, particularly in India. The housing shortage of 35 million units by 2030 in urban India highlights the pressing need to improve supply of housing units…

What was the problem you were grappling with? As a working mother, the challenges are many but for me the toughest was emotional pain or ‘mom guilt’. During my stint in New York (while she was with the State Bank of India), I had to endure a year-long separation from my young daughter. Emotionally, it was challenging. However, for every transfer after that, I decided she would be with me. On returning to India, I was asked to take up the General Manager’s post for eastern UP. It meant I had to move to Lucknow and my daughter, who needed special care, would have to move schools. I felt it would be challenging to find a school that met her needs. So, I decided to turn it down. But when…

A CHANCE TO FLY BY 2047, THE INDIAN ECONOMY WILL BE NEARLY 12 TIMES BIGGER THAN ITS CURRENT SIZE SOURCE CMIE ECONOMIC OUTLOOK AND LOK SABHA DOCUMENTS 400,000 THE LEVEL BSE SENSEX MAY HIT BY 2047, ACCORDING TO ACE INVESTOR VIJAY KEDIA. ON THE CONSERVATIVE SIDE, SARVJEET SINGH VIRK, CO-FOUNDER AND MD OF SHOONYA BY FINVASIA, SEES THE INDEX AT 250,000 1.02 BILLION THE PROJECTED MIDDLE CLASS POPULATION IN INDIA BY 2047 COMPARED TO 432 MILLION IN 2021, PER A STUDY BY PEOPLE RESEARCH ON INDIA’S CONSUMER ECONOMY 1.67 BILLION SIZE OF INDIA’S TOTAL POPULATION BY 2047, PER UNITED NATIONS POPULATION PROJECTIONS. THE WORLD POPULATION WILL TOUCH 9.53 BILLION BY THAT TIME RISING INCOME INDIA’S PER CAPITA GDP IS PROJECTED TO CROSS ₹20 LAKH IN THE NEXT 23 YEARS SOURCE…

AN IMPRESSIVE 1.44 billion. That’s the population of India and it is expected to reach its peak in the early 2060s at around 1.7 billion before it starts to decline, according to the ‘UN World Population Prospects Report 2024’. If strength lies in numbers, then India as the world’s most populous country surely has the strength. It is the world’s largest democracy, the fastest-growing major economy and has a thriving domestic market because of the sheer size of its population. But scratch the surface and the numbers show that maintaining this momentum in economic growth would require concerted efforts, not least being a focus on its population and ensuring that not only is it productively employed but it also has the wherewithal to remain so in the coming decades. Alakh…

I HAVE BEEN a regular visitor to India for more than three decades, and every visit has been an invigorating experience. I have witnessed first-hand the significant changes in the economic landscape of the country. It is this economic transformation that gives India the runway to achieve its ambition of becoming a ‘developed’ nation by 2047, which also marks its 100th year of Independence. In the face of global challenges such as the geopolitical tensions swirling around us all and multi-decade-high inflation, India has the potential to generate differentiated success. Of course, as with every substantial undertaking, there are hurdles to overcome, but with a fast-growing economy driven by investment, innovation, and demographics together with macroeconomic indicators, India has a real opportunity to seize. It took Independent India six decades…

TRY IMAGINING THIS. The year is 2047. Some of the top conglomerates and public sector firms are carbon neutral. India has a green power grid fed by renewable energy, unlike now when coal dominates. A majority of two- and four-wheelers running on Indian roads are electric powered. And Indians can breathe clean air throughout the year. That’s not a stretch if India sticks to the road map for achieving net-zero emissions by 2070. That plan is premised on six elements—expanding renewable energy capacity; improving access to alternative clean energy sources such as nuclear energy, green hydrogen, fuel cells, and biofuels; increasing energy efficiency; rational utilisation of fossil fuel resources; industrial decarbonisation; and an optimum energy mix complementing national development scenarios. But getting there requires a vast improvement in the infrastructure.…

INDIA IS IN a very sharp place today. I deliberately say ‘sharp’. Look around us in the world and India would have made some of the sharpest moves in recent times. Our foreign policy for the first time stands out as firm, neutral and non-aligned, always for peaceful resolutions and unwilling to be a part of or support a war. And let’s face it: no one can bully us or mess with us; and every Indian travelling or working around the world stands tall and commands respect. Economically we stand stronger than any other time in our history, in multiple ways, from growth to having some of the strongest (some may say conservative) regulatory systems. But it is this balance that made us stand apart during the 2008 financial crisis…

By leveraging UPI’s existing infrastructure, widespread reach and simplicity, credit can reach unbanked and underbanked sections Digital credit processes coupled with UPI can lower operational costs, making credit more affordable and accessible Alternative credit scoring models, using data from UPI transactions, can improve credit assessment and reduce reliance on traditional credit scores UPI-based credit can enable customised financial products suited to the needs of smaller regions and underserved populations…

Addressing the twin problems of unemployment and poverty as well as catering to the socioeconomic needs of the people belonging to Oil India's operational areas, CSR Project "OIL Rupantar" (meaning transformation) aims to create employment avenues and promote entrepreneurship in the region and generate sustainable sources of livelihood while also emphasizing on the transformative potential of digital education. Envisioning the growing economy and the need to introduce technology-driven advancements, "OIL Rupantar" has identified Information Technology as one of its ways to generate opportunities for employment primarily amongst the youth. New age Information Technology has the potential to change societal structures and processes, even greater in scale to that of both agricultural and industrial revolutions. The world's technological horizon, be it in science, education, healthcare, infrastructure, media, business, government, military, art…

MUTUAL FUNDS, OR MFs, have become ubiquitous vehicles of choice for investors across the economic spectrum looking to achieve their financial goals. In the past decade, and more so in the post-Covid period, retail investors have taken to MFs of all hues—equity, debt, and hybrid—in their journey towards wealth creation. As we analyse the phenomenal growth of the ₹61.16-lakh crore industry in recent years, many interesting trends and facets emerge. They also indicate where the industry is headed in the coming decades. Mutual funds are now steadily catching up with the fixed deposits of banks in terms of assets garnered. An expanding systematic investment plan (SIP) book that is effectively helping domestic institutional investors (DIIs) in cushioning against foreign institutional investor (FII) selling, rapid growth in assets from smaller cities,…

AS INDIA APPROACHES its centenary celebration of independence in 2047, it’s truly remarkable to reflect on our progress. Global capability centres (GCCs) have undergone a remarkable transformation from being considered mere cost centres to evolving into cradles of innovation, driven by the transformative impact of artificial intelligence (AI). This evolution represents more than just shifting numbers or projections—it’s a profound change in our approach to business and innovation. Generative AI could boost India’s GDP by $359-438 billion by 2030, representing a 5.9-7.2% increase. Over seven years, the cumulative impact could reach $1.2-1.5 trillion, adding 0.9-1.1% to annual growth, according to EY. Given India’s strong position as a tech services provider, Gen AI alone could contribute over $100 billion to the economy. India boasts the highest AI skills penetration, with three…

THE LAST 10 years have witnessed a significant transformation in India. The Indian economy has become the fifth largest in the world and is currently the fastest-growing large economy globally. Over this decade, the government’s Budget has tripled from ₹16 lakh crore to ₹48 lakh crore. Among many milestones, one stands out for symbolising India’s qualitative transformation—the leadership of the Narendra Modi government. For decades, Indian governance was characterised by dysfunctionality and corruption. This was famously described by Rajiv Gandhi in the late 1980s when he noted that out of every ₹100 allocated, only ₹15 reached its intended recipient. This leakage, corruption, and inefficiency defined India’s governance for six and a half decades after Independence until Prime Minister Narendra Modi assumed office, bringing with him a vision of ‘Maximum Governance’.…

THE INDIAN ECONOMY grew by 7% in financial year 2022-23 (FY23) and 8.2% in FY24, making it the fastest-growing large economy in a challenging global economic environment. Besides the current strengths, there are clear signs of important structural changes underway, all pointing to the likelihood of India becoming a developed nation by 2047. Macroeconomic parameters are stable. There is clarity, consistency, and focus on long-term economic growth in the government’s policymaking. The government has also been fiscally prudent. Even when the economic impact of Covid-19 was felt acutely, the government stayed away from the temptation of a large-scale fiscal stimulus. Instead, it focussed on directing credit to boost capital spending. The fiscal deficit has declined to 5.6% in FY24, with the possibility of reaching 3% by FY28. Foreign exchange reserves…

“BECAUSE IT’S THERE!” English climber George Mallory reportedly said in 1924 when asked why he was trying to climb Mt Everest for the third time. By then, the farthest corners of the Earth had been explored, and only Everest was left. Mallory and fellow climber Andrew Irvine lost their lives in that bid. A century later, that retort could sum up why the private sector has become a critical part of India’s space exploration plans, which grabbed eyeballs in 2014 with Mangalyaan. The Mars orbiter mission, its first interplanetary mission, cost less than Hollywood movies on science fiction, and the three Moon missions (2008, 2019 and 2023) have shown that the Indian Space Research Organisation (Isro) has come of age. In 2020, the government allowed the private sector to reach…

AS INDIA NEARS its 100th year of Independence in 2047, we stand at a crucial juncture in our nation’s journey. The concept of ‘health for all’ has evolved far beyond traditional healthcare, now encompassing a holistic vision that touches every aspect of our citizens’ lives—from the food on our plates to the air we breathe, from the jobs we hold to the technologies we use. This vision encompasses a range of innovations—from artificial intelligence (AI)-driven healthcare to sustainable farming practices, the development of climate-resilient crops, and the establishment of rural health tech centres. These advancements strive to ensure that quality healthcare and nutrition are accessible and affordable for all Indians, regardless of their location or economic status. GROUND-UP WELLNESS The agricultural sector of 2047 is on the brink of a…

WORLD CINEMA CELEBRATED its 100 years in 1995. Two years later, we introduced the country’s first multiplex, PVR Saket, sparking the cinema revolution in India. By 2047, the cinema industry would have undergone another transformation, revolutionising how we watch movies, once again. By 2047, India’s GDP is expected to cross $30 trillion, and reports suggest 50% of the economy is expected to be driven by the services sector, particularly the creative economy including cinema, content, and various forms of “phygital” entertainment. Our changing behaviours and the rise in technology will influence the theatrical experience. In my view, this is what a movie-going experience in 2047 could be: • Cinema will be around forever. Cinema exhibition is an industry that has passed the test of time. The moving picture, as it…

INDIA HAS THE potential to win the fiercely contested battle for luxury supremacy; it won’t be France or Italy. The writing has been on the wall for generations; we are not a dark horse in this race. When I was opening my store in New York in 2022, a journalist attempted a few hard-hitting political and social questions about India. When she raised the subject of child labour and exploitation, a topic fraught with dangerous connotations in the West, I had enough. Looking her straight in the eye, I asked at what age a child is first made to pursue sports in their country in hopes of becoming an Olympic champion. At 13 years old, Marjorie Gestring made history as the youngest Olympian from the US to win gold. The…

SOME YEARS AGO, Satya Nadella, the CEO of Microsoft, while admiring India’s economic success made a very telling comment, when he said that he would like to see entrepreneurs from SAARC nations setting up India’s next generation of unicorns. Giving his own example as an immigrant who succeeded in the United States, he highlighted that a quintessential feature of great societies is their ability to attract the best talent. I have often found myself thinking over his quote and have realised over the years that what he has said is historically true. The economic and social growth of human civilisation has always been centred around cities, and in this context, great cities such as Athens, Florence, Boston, Rome, London, Madurai, Delhi, Mumbai, Istanbul have been the epicentres of culture and…

SLOW ADOPTION The value of the digital rupee in wholesale and retail stood at ₹0.08 crore and ₹234.04 crore, respectively, as of March 31, 2024 UPI COMPETITION Widespread UPI usage and other methods of digital payments like NEFT and RTGS hinder CBDC adoption DENOMINATION LIMITS Fixed denominations and traceability of digital rupee restrict precise payments compared to digital accounts CROSS-BORDER PAYMENTS CBDC can be used for cross-border payments, helping SMEs become export-efficient FUTURE POTENTIAL The digital rupee’s success depends on programmability and expanding use cases…