India 2024

INCREDIBLE INDIA SPECIAL EDITION – REPUBLIC DAY OF INDIA 2024

Indian Economy:

Growing Steadily trong economic growth in the first quarter of Financial Year 2023 helped India overcome the UK to become the fifth-largest economy after it recovered from the COVID-19 pandemic shock. Real GDP at constant prices (2011-12) in the first quarter of 2023–24 is estimated at Rs. 40.37 trillion (US$ 484.94 billion), showing a growth of 7.8% as compared to the first quarter of 2022-23 estimated at Rs. 37.44 trillion (US$ 449.74 billion). Given the release of pent-up demand and the widespread vaccination coverage, the contact-intensive services sector will probably be the main driver of development in 2022–2023. In 2023-24 (April-September), India’s service exports stood at US$ 164.89 billion.

Furthermore, India’s overall exports (services and merchandise) in 2023-24 (April-September) were estimated at US$ 376.29 billion. Rising employment and substantially increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months.

Future capital spending of the government in the economy is expected to be supported by

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factors such as tax buoyancy, the streamlined tax system with low rates, a thorough assessment and rationalisation of the tariff structure, and the digitization of tax filing. In the medium run, increased capital spending on infrastructure and asset-building projects is set to increase growth multipliers, and with the revival in monsoon and the Kharif sowing, agriculture is also picking up momentum. The contact-based services sector has largely demonstrated promise to boost growth by unleashing the pent-up demand over the period of April-December 2022.

The sector’s success is being captured by a number of HFIs (High-Frequency Indicators) that are performing well, indicating the beginnings of a comeback.

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

India’s appeal as a destination for investments has grown stronger and more sustainable as a result of the current period of global unpredictability and volatility, and the record amounts of INDIA 2024

money raised by India-focused funds in 2022 are evidence of investor faith in the “Invest in India” narrative.

India’s nominal gross domestic product (GDP) at current prices is estimated to be at Rs. 301.75 trillion (US$ 3.62 trillion) in 2023-24. Additionally, the Nominal GDP at current prices in Q1 of 2023-24 was Rs. 70.67 trillion (US$ 848.92 billion), as against Rs. 65.42 trillion (US$ 785.85 billion) in 2022-23, estimating a growth of 8%. With 115 unicorns valued at more than US$ 350 billion, as of February 2023, India presently has the third-largest unicorn base in the world. The government is also focusing on renewable sources by achieving 40% of its energy from non-fossil sources by 2030. India is committed to achievcordmagazine.com

ing the country’s ambition of Net Zero Emissions by 2070 through a five-pronged strategy, ‘Panchamrit’. Moreover, India ranked 3rd in the renewable energy country attractive index.

Exports fared remarkably well during the pandemic and aided recovery when all other growth engines were losing steam in terms of their contribution to GDP. Going forward, the contribution of merchandise exports may waver as several of India’s trade partners witness an economic slowdown. According to Mr. Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Indian exports are expected to reach US$ 1 trillion by 2030 .

Source: ibef.org 03

Cement Industry in India

ndia is the second-largest producer of cement in the world. It accounts for more than 8% of the global installed capacity. India has a lot of potential for development in the infrastructure and construction sector and the cement sector is expected to largely benefit from it. Furthermore, on the back of rising rural housing demand, the consumption of cement in India has been growing consistently as it is one of the cheapest products to buy in terms of Rs./kg. Strong expansion of the industrial sector, which has fully recovered from the COVID-19 pandemic shock, is one of the main demand drivers for the cement industry. As a result, there is a strong potential for an increase in the long-term demand for the cement industry.

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Some of the recent initiatives, such as the development of 98 smart cities, are expected to significantly boost the sector.

Aided by suitable Government foreign policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have invested in the country in the recent past. A significant factor which aids the growth of this sector is the ready availability of raw materials for making cement, such as limestone and coal. Currently, the installed cement capacity in India is 553 MTPA with a production of 298 MTPA. The cement demand in India is exhibiting a CAGR of 5.65% between 2016-22. As India has a high quantity and quality of limestone deposits throughout the country, the cement industry promises huge potential for growth. India has a total of 210 large cement plants, of which 77 are in Andhra Pradesh, Rajasthan, and Tamil Nadu. Nearly 32% of India’s cement production capacity is based in South India, 20% in North India, 13% in Central, 15% in West India, and the remaining 20% is based in East India.

India’s cement production is expected to increase at a CAGR of 5.65% between FY16-22, driven by demands in roads, urban infrastructure and commercial real estate. India’s cement production was expected to range between 380-390 million tonnes in FY23, a growth rate of 8-9% year-on-year (yoy).

Between FY12 and FY23, the installed capacity grew by 61% to 570 MT from 353 in FY22. The Indian cement sector’s capacity is expected to expand at a compound annual growth rate (CAGR) of 4-5% over the four-year period up to the end of the FY27. It would thus begin the 2028 financial year at 715-725 MT/ year in installed capacity.

India’s cement production for FY24 is expected to grow by 7-8% driven by infrastructure-led investment and mass residential projects.

Source: ibef.org INDIA 2024

Automobile Industry in India he Indian automobile industry has historically been a good indicator of how well the economy is doing, as the automobile sector plays a key role in both macroeconomic expansion and technological advancement. The two-wheelers segment dominates the market in terms of volume, owing to a growing middle class and a huge percentage of India’s population being young. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The rising logistics and passenger transportation industries are driving up demand for commercial vehicles. Future market growth is anticipated to be fueled by new trends including the electrification of vehicles, particularly three-wheelers and small passenger automobiles.

India enjoys a strong position in the global heavy vehicles market as it is the largest tractor producer, second-largest bus manufacturer, and third-largest heavy truck manufacturer in the world. India’s annual production of automobiles in FY22 was 22.93 million vehicles. India has a strong market in terms of domestic demand and exports. In FY23, total passenger vehicle sales reached 3.89 million. In FY23, total automobile exports from India stood at 47,61,487. This sector's share of the national GDP increased from 2.77% in 1992-1993 to around 7.1% presently. It employs about 19 million people directly and indirectly.

India is also a prominent auto exporter and has strong export growth expectations for the near future. In addition, several initiatives by the Government of India such as the Automotive Mission Plan 2026, scrappage policy, and production-linked incentive scheme in the Indian market are expected to make India one of the global leaders in the two-wheeler and four-wheeler market. (Source: ibef.org)

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BHARAT MOBILITY 2024 is a mega event being organized by multiple industry bodies like the Engineering Export Promotion Council (EEPC), the Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Assocordmagazine.com

(https://bharat-mobility.com) (1-3 Feb. 2024)

ciation (ACMA) under the overall guidance of Ministry of Commerce & Industry is scheduled from 13 February 2024 at Bharat mandapam, New Delhi. In contrast to regular auto expos, Bharat Mobility Show will concentrate on the future. It will cover more than just cars, incorporating drones to position India in the future mobility space. The event aims to bridge gaps in the industry, fostering collaboration for the future of mobility in India.

A mega event covering the entire value chain of the Mobility Industry including automobiles, automotive components, tyre manufacturing, energy storage solutions, urban mobility, alternative fuels, cutting-edge technology- all seamlessly brought together at a single venue.

A “mega” auto mobility show to bring together various industry stakeholders under one roof, it will be unlike the biennially held Auto Expo and Auto Components Expo which focus more on new product launches and will feature specialized exhibitions such as ACMA Automechanika, an auto show, a large-scale tyre exhibition, display of the latest electric vehicles (EVs), urban mobility solutions such as drones, batteries, charging stations, multiple energy sources and cutting-edge automotive and information technologies initiatives in EVs, hybrid, hydrogen, CNG/LNG, Ethanol/Biofuels etc.

For more details, please contact Mr. Suranjan Gupta, Executive Director, EEPC India, sgupta@eepcindia.net, ed@eepcinidia.net or Commercial Wing of the Embassy of India in Belgrade hoc.belgrade@mea.gov.in 05

Prime Minister Narendra Modi’s address during 2nd edition of Infinity Forum [A Global thought Leadership Platform on Fintech] on 9 December 2023

GIFT CITY, GUJARAT

he popular Chief Minister of Gujarat, Shri Bhupendrabhai, the ministers of the state government, Chairman of IFSCA, K. Rajaraman ji, esteemed leaders of renowned financial institutions and various organizations, ladies and gentlemen.

I welcome all of you to the second edition of Infinity Forum. I remember when we met during the inaugural Infinity Forum in December 2021; the world was filled with uncertainty due to the pandemic. Everyone was concerned about global economic growth, and those worries still persist today. You are all well aware of the challenges posed by geopolitical tensions, high inflation, and debt levels.

During such times, Bharat has emerged as a splendid example of resilience and progress. The deliberation on 21st-century economic policies in GIFT City in such a crucial period is going to contribute to the pride of Gujarat. Today, I would also like to congratulate the people of Gujarat for another achievement.

Recently, UNESCO included Gujarat’s traditional dance Garba in the Intangible Cultural Heritage. This is a significant ac-

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complishment, and the success of Gujarat is the success of the country.

Today, Bharat’s growth story has shown the world what results can be achieved when policies are given top priority, when full efforts are made for good governance, and when the welfare of the country and its citizens becomes the foundation of economic policies. The Indian economy has progressed at a rate of 7.7 per cent in the first six months of this fiscal year alone. The IMF had stated in September this year that 16 percent of global growth in 2023 will be contributed

by Bharat. Earlier in July 2023, the World Bank expressed greater hopes for Bharat and its economy amid global challenges. In March this year, the Prime Minister of Australia remarked that Bharat is in a strong position to provide leadership to the global south. A few months ago, the World Economic Forum also mentioned the reduction of red tape and the creation of a better investment environment in Bharat.

Today, the entire world is hopeful about Bharat, and this hasn’t happened without reason. It is a reflection of Bharat’s strong economy and the transformative reforms undertaken in the last

10 years. These reforms have strengthened the economic foundations of the country. During the pandemic, when most countries were focusing primarily on fiscal and monetary relief, we directed our focus towards the expansion of longterm growth and economic capacity.

An important goal of our reforms is to enhance integration with the global economy. We have made the FDI policy more flexible in several sectors, reduced compliance burdens, signed three FTAs, and continue to take many significant steps today. The establishment of the GIFT IFSCA, integrating Indian financial markets with global financial markets, is part of our larger reforms. The vision for GIFT City has been crafted as a dynamic ecosystem that will redefine the landscape of international finance. It will set new benchmarks for innovation, efficiency, and global collaboration. The establishment of the International Financial Services Centres Authority as a unified regulator in 2020 is a crucial landmark in this journey. Even during the challenging economic upheavals, IFSCA has formulated 27 regulations and more than 10 frameworks, opening up new avenues for investment.

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You’ll be pleased to know that based on the suggestions made in the first edition of Infinity Forum, several initiatives have been launched. For instance, in April 2022, IFSCA announced a comprehensive framework to govern fund management activities. Today, 80 fund management institutions are registered with IFSCA that have set up funds exceeding USD 24 billion. Two leading international universities have obtained approval to start their courses at GIFT IFSC from 2024. The framework for aircraft leasing was issued by IFSCA in May 2022, and now 26 units have commenced operations in collaboration with IFSCA. The resounding success of the first edition, with so much work done based on your suggestions, naturally raises the question of what’s next. Will the scope of GIFT IFSCA remain the same? My answer would be no. The government aims to propel GIFT IFSCA beyond traditional finance and ventures. We envision GIFT City as the global nerve centre for new-age financial and technology services. I believe that the products and services of GIFT City will help address significant challenges globally, and you, as stakeholders, will have to play a crucial role in this regard.

Today, one of the most significant challenges facing the world is climate change. Bharat, being one of the largest economies globally, is not untouched by these concerns, and we are aware of it. Just a few days ago, Bharat presented new commitments before the world at the COP Summit. To achieve global targets for Bharat and the world, it is imperative to ensure the adequate availability of cost-effective finance.

During our G-20 presidency, one of our priorities was to understand the need for sustainable finance to ensure global growth and stability. This would contribute to the transition towards greener, resilient, and inclusive societies and economies. According to some estimates, Bharat would require at least USD 10 trillion by 2070 to achieve the Net Zero Target. Financing from global sources is essential for this investment. Hence, we aim to make IFSC a global hub for sustainable finance. cordmagazine.com

GIFT IFSC serves as an efficient channel for the necessary flow of green capital to build a low-carbon economy in Bharat.

The development of financial products such as green bonds, sustainable bonds, and sustainability-linked bonds will make the path and access easier for the entire world. As you know, Bharat has announced the ‘Global Green Credit Initiative’ as a pro-planet initiative at COP28.

I would appreciate input from all experienced individuals here on developing market mechanisms for green credit.

Bharat is currently one of the world’s fastest-growing fintech markets. The strength of Bharat in fintech is aligned with the vision of GIFT IFSC, making it an emerging centre for fintech. In 2022, IFSCA issued a progressive regulatory framework for fintech. To promote innovation and entrepreneurship, IFSCA also has a fintech initiative scheme providing grants to both Indian and foreign fintechs. GIFT City has the potential to become the gateway and fintech laboratory for the global fintech world. I encourage all of you to make the most of this opportunity.

Within a few years of its establishment, the way GIFT-IFSC has become a prominent gateway for the flow of global capital is a subject of study in itself. GIFT City has developed a unique ‘tri-city’ concept. The connectivity of GIFT City between the historical city of Ahmedabad and the capital city Gandhinagar is exceptional. The cutting-edge digital infrastructure of GIFT IFSC provides a platform that enhances the speed and efficiency of businesses. You are well aware of its global connectivity. GIFT IFSC has emerged as a management that attracts the biggest minds in the financial and technology world.

Today, there are 580 operational entities in IFSC. This includes 3 exchanges, including the international bullion exchange, 25 banks, with 9 foreign banks, 29 insurance entities, 2 foreign universities, and over 50 professional services providers, including consulting firms, law firms, and CA firms. I believe that GIFT City will be among the world’s pre-

mier international financial centres in the next few years.

Bharat is a country where deep democratic values coexist with a rich tradition of trade and commerce. There is a diverse range of opportunities for every investor or company in Bharat. Our vision for GIFT is intertwined with Bharat’s growth story. Let me share some examples. Today, 400,000 air passengers travel daily. The number of passenger aircraft in our country in 2014 was 400, which has now exceeded 700. In the last 9 years, the number of aircraft in Bharat has doubled.

In the coming years, our airlines are planning to purchase around 1000 aircraft.

In these circumstances, the range of facilities provided by GIFT City to aircraft lessors is truly remarkable. With the increasing movement of goods via water routes and a growing number of ships in Bharat, IFSCA’s ship leasing framework is offering an opportunity to capitalize on this trend. Similarly, Bharat’s strong IT talent, data protection laws, and GIFT’s data embassy initiative provide secure digital connectivity to countries and businesses. Thanks to the young talent in Bharat, we have become the base for global capability centres of many major companies.

In the next few years, Bharat will become the world’s third-largest economy, and it aims to be a developed nation by 2047. New forms of capital, digital technologies, and advanced financial services will play a crucial role in this journey.

With its efficient regulations, plug-andplay infrastructure, reach to the large Indian hinterland economy, cost advantages, and talent pool, GIFT City is preparing opportunities that are unmatched by any other.

Let’s move forward together to fulfill global dreams with GIFT IFSC. The Vibrant Gujarat Global Investor Summit is just around the corner, and I invite all investors to participate in it. I extend my best wishes for your efforts. Let’s explore innovative ideas in addressing global challenges and take them forward.

Source: Government of India 07

2nd CII India Europe Business and Sustainability Conclave: 20-21 February 2024 in New Delhi

(https://ciiindiaeuropeconclave.in)

CII [Confedertion of Indian Industry] in partnership with the Ministry of External Affairs, Government of India will be organizing the second edition of the Conclave from 20 - 21 February 2024 in New Delhi.

The Conclave will be one of the largest congregations of European and Indian stake holders, cutting across different sectors. It will focus on the strategic role between both the regions in changing geo-political scenario, strengthening bilateral engagements and the emerging economic opportunities. We will aim to bring together government officials, industry experts, think tanks, and academia to deliberate and share their insights on critical issues.

Europe is India’s second largest trading partner and has consistently been among India’s top (10-12) global partners. Bilateral trade between India and Europe in 2022-23 has been USD 185.16 Billion. India’s total exports to Europe in 2022 – 2023 is USD 96.90 Billion and Indian imports to Europe has been USD 88.26 Billion. Europe solely contributes 21.8% share in India’s total exports.

The formal announcement of the ambitious India-Middle East-Europe Economic Corridor

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Further information may be obtained from Embassy of India, Belgrade (hoc.belgrade@mea.gov.in) 08

(IMEC), during the G20 Summit in 2023 has opened doors for strengthening trade relations between India, Middle Eastern and European nations. The project aims to establish railways, ports, electricity grids, hydrogen pipelines, and data networks among participating nations. This is aimed at unlocking greater investment for infrastructure development and strengthening connectivity in its various dimensions between India, Middle East and Europe.

To take forward the agenda of “India – Europe partnership for better sustainable future” and to build upon the takeaways of the first edition of CII India Europe Business & Sustainability Conclave, Confederation of Indian Industry (CII) in partnership with Ministry of External Affairs, Government of India decided to partner to organise the 2nd Edition of the CII India Europe Business & Sustainability Conclave. The Conclave will aim at putting forward the business perspectives and priorities and deliberating on the opportunities and challenges for businesses in India and Europe.

Source:cii.in INDIA 2024

India-Serbia Bilateral Relations : Important milestones 2023 Both the countries celebrated the 75th anniversary of establishment of diplomatic relations in 2023. To mark this anniversary, the Archives of Yugoslavia in Belgrade organized an event on 11 December 2023 in coordination with the Ministry of Foreign Affairs of Serbia and participation of the Embassy of India in Belgrade.

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At the invitation of H.E. Mr. Aleksandar Vucic, President of the Republic of Serbia, H.E. Mrs. Droupadi Murmu, President of India paid a State visit to Serbia from 7-9 June 2023. This was her first visit to Europe, and the first-ever visit by a Head of State of either country. President was accompanied by Sadhvi Niranjan Jyoti, Minister of State for Rural Development, Consumer Affairs, Food & Public Distribution, and Smt. Rama Devi, Member of Parliament, Lok Sabha, and an official delegation. Her visit reaffirmed the strong and historic relations between the two countries. The visit also provided fresh momentum to our bilateral ties, especially economic.

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Ambassador Ms. Shubhdarshini Tripathi presented her credentials to President Aleksandar Vucic on 2 October 2023 in Belgrade Embassy of India, Belgrade organised the Indian Technical and Economic operation Day 2023 on 18 December 2023 to celebrate 59 glorious years of building capacity for global good. In her address at the celebration, Indian Ambassador Ms. Shubhdarshini Tripathi, gave an overview of the ITEC programme which covers over 300 training courses of different duration in premier training institutes of India to over 160 friendly foreign countries since 1964. Serbia is one of the ITEC partner countries and since 2008, 168 Serbian mid-level career professionals have undergone courses on a wide and diverse range of skills and disciplines, including in ICT, Expenditure Management, Entrepreneurship, WTO, Banking & Finance, Renewable Energy, Climate Change, Legislative Drafting, Yoga, English proficiency etc. Hence, India has been contributing in its own way, to capacity building in Serbia. cordmagazine.com

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