Trade CouncilPromotionofIndia Indian enterprise. Global synergies. INDIA BUSINESS TRADE SEPT 2022 WTO REFORM & INDIA’S CULTURESTRONGINDIANSPOSITIONCHALLENGINGDrSunithaRaju,ProfessorIIFT&Member,CATR,TPCIHAVEASENSEOF&IDENTITYHEWaelHamed,AmbassadorofEgypttoIndia REALISING A POST-COVID ROADMAP FOR INDIA’S HEALTHCARE SECTOR
From the Editor’s desk TPCI DEPUTYADDITIONALPrashantCHAIRMANGargDIRECTORGENERALVijayKGaubaDIRECTORGENERALSandipDas EDITORIAL DEPUTYViratEDITORBahriEDITORNikhaarGogna CONTENT & RESEARCH Talotma Lal, Guneet Kaur, Manish DESIGN SR. ART PrakashDIRECTORShettyDESIGNERAjayKumar India Business & Trade is a monthly magazine published by Trade Promotion Council of India, 9, Scindia House, Connaught Circus, New Delhi- 110001, India and printed at M R printers, A-29/1, Naraina Phase 1, New Delhi - 110028 Material in this publication may not be reproduced in any form without the written permission of TPCI. Editorial/external opinions expressed in this magazine are not necessarily those of TPCI, and TPCI does not take responsibility for the advertising content, content obtained from third parties and views expressed by any independent author/contributor. For editorial queries/feedback, contact: editorial@tpci.in For advertising queries, advertise@tpci.incontact: Indian enterprise. Global synergies Vol 4 | Issue 1 Sep 2022
The recent few years have already seen a major shift towards digitization and Industry 4.0. 5G promises to take the industry several leaps forward in this direction, spurring new innovation and use cases in realms like AI, IoT, robotics, data analytics, VR and AR and 3D printing.
Another PwC report predicts that 5G-powered healthcare applications will add US$ 530 billion to global GDP by 2030. It is well recognized that telemedicine can be a boon for India’s healthcare infrastructure, where there is a shortage of medical practitioners & healthcare centres. But technology can replace these deficiencies considerably by providing remote access to healthcare. This access needs to be credible, convenient, timely and economical. In this regard, widespread deployment of tele-health ecosystems at health & wellness centres and tele ICUs at district hospitals can be game changing. The tele-health ecosystems will enable elaborate point-of-care diagnosis of various parameters, which can be monitored remotely by doctors. They can then guide the healthcare worker on the ground for further course of action and make relevant prescriptions. India has only 5,000 intensivists to manage over 300,000 ICU beds (ICMRCentre for Innovation and Bio-Design or CIBioD). Tele-ICUs can connect the critical-care teams of nurses, doctors, and intensivists in the remote hospital to a major, multi-specialty hospital that has superspecialists available 24/7 through audio-visual and patient surveillance devices. The remote workers can exchange patient data in real time and take guidance from the main hospital to ensure timely & standardized care. With video streaming, patient monitoring can also be enabled remotely. These applications require extremely robust and seamless data connectivity, which 5G can provide. Taking it further, extended reality (XR) platforms can be a huge facilitator for medical training, teaching or virtual therapy. Enhanced connectivity will also accelerate the growth of home healthcare, remote patient monitoring, ambulance management, remote and robotic surgery, thereby proving a strong impetus to the healthcare ecosystem.
VIRAT BAHRI Editor, India Business & Trade India concluded a momentous 5G bidding auction in August. According to the government, the spectrum purchased should be sufficient for good 5G coverage across the country in 2-3 years. The advent of 5G can herald a promising leap forward for India.
IHS Market Study projects that the deployment of 5G can generate up to US$ 13.2 trillion in global economic value and 22.3 million jobs in the 5G global value chain alone by 2035. 5G provides enhanced speed that is upto 100 times higher than 4G (download speed of upto 10GB/s) and ability to connect multiple devices.
A World Economic Forum-PwC report highlights the massive impact of 5G in 5 areas: superfast broadband, ultra-reliable low latency communication, massive machine-type communications, high reliability/availability and efficient energy usage. The report adds that technology will contribute to industrial advances by enabling faster and effective inspections through predictive intelligence; improving workplace and worker safety; and enhancing operational effectiveness.
To illustrate the impact of 5G, let us consider its usage in healthcare, which has received renewed focus post-COVID, and is also the cover story of this issue. The COVID-19 pandemic saw widespread usage of robotics, IoT and AI to maximise efficiency and outcomes in a high-stress environment, and also minimize risk of infection. Through data received from 5G-enabled tracking of patients and medical devices, doctors will be able to ensure continuous, real time monitoring, enable faster treatment and also gain bandwidth to utilize their time more productively.
It is also much needed in the current scenario, where data traffic is increasing by 60% annually with rapid rise in usage of video and connected services (Ericsson).
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14 India: The burning market for carbon trade? To unleash the full potential of carbon trade, we need a regulated, transparent emissions trading programme.
12 Weathering the perfect storm? The quagmire facing Indian steel.
10 Making global trade smarter Blockchain technology is a powerful tool for MSMEs to increase their international footprint.
IBT DATA POINT
The passport factor India’s global ranking on passport power is inconsistent with its growing economic stature.
11 Still sunny days for edtech? Is edtech well primed to catalyse equitable access to education in the post-pandemic years?
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A digital leap of faith Digital banking is widely touted as the future of banking in India. But is the ecosystem ready?
10 SMARTER TRADE Blockchain is a powerful tool for MSMEs to grow their footprint.
18 Rupee trade settlement: A historic step? The new system will allow a comfortable mechanism to any country seeking to trade with India.
2 | India Business & Trade • Sep, 2022 TPCI NEWS BUZZ 4 Trade & business news updates from across the world. QUICK INSIGHTS
DAIRY VALUE CHAIN
How India can become a leading dairy exporter
PERSPECTIVES
16 Reinvigorating India’s dairy value chain With the correct policy support and robust infrastructure, India can become a prominent dairy exporter.
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Dr. Upasana Arora, Director, Yashoda Super Specialty Hospitals Importance of herd quality in healthcare
tea
HE Mr. Wael Hamed, Egypt’s Ambassador to India, discusses Egypt’s strengths as an investment destination. 27 A great business gateway for Indian companies
LATEST@TPCI TPCI
Sep, 2022 • India Business & Trade | 3 35 HEALING THE WORLD India can be a global healthcare guru in the coming years. 20 WTO reforms and India’s challenging position
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DIPLOMATIC DISCOURSE Like Egyptians, Indians have a strong sense of culture
Hans-Joerg Hoertnagl, Commercial Counsellor & Trade Commissioner, Austrian Embassy on India-Austria relations. SECTOR Inevitable necessity or another fad? The growth of sustainable fashion business looks bright. However, this expansion is not without hurdles. 26 Fashion brands are minimising their carbon footprint The concept of sustainable fashion is still in infancy in the Indian context according to Manisha Kinnu, Campus Director, NIFT. STORY India’s Holistic Promise A post-COVID roadmap for India’s healthcare exports Mode 1 & 2 to see higher synergies in exports
44 CUP
Dr. Sunitha Raju discusses the WTO’s work programme & India’s role in addressing developing nations’ concerns.
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COVER
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ACTIVITIES 38
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FOCUS
Dr Atul Mohan Kochhar, CEO, NABH 37 AYUSH & Allopathy
Dr. D C Katoch, Senior CMO (Ayurveda), CGHS What’s the latest @TPCI? Discover what kept TPCI busy the last quarter. OF fascinating journey of across the world launched the Committee for Advanced Trade Research.
Dr. Girdhar Gyani, DG, AHPI (India) Indian healthcare
Dr. Pralok Gupta, Associate Professor, IIFT 34 India can be the global ‘healthcare guru’ in 5 years
EQUALITY The
The Saudi government is taking impressive steps to improve the business environment, attract foreign investment and create private-sector employment. These initiatives, along with governance and labour market reform, have made it easier to do business, increased the number of industrial facilities, and raised female participation in the labour force.
InternationalNews Buzz
Saudi Arabia is likely to be one of the world’s fastest-growing economies this year. This is due to the pro-business reforms and a sharp rise in oil prices coupled with a recovery in production power from a pandemic-induced recession in 2020. The country's gross domestic product is expected to expand by 7.6%, the fastest growth that Saudi Arabia has registered in almost a decade, according to IMF's recent Article IV consultation report. It is likely that inflation will remain contained at 2.8% in 2022, despite higher prices for imported commodities, as the central bank tightens policy in line with the US Federal Reserve. Public finances and the external position will also strengthen on account of increased non-oil revenue and higher proceeds from oil exports.
NEWS BRIEF 4 | India Business & Trade • Sep, 2022 M ounting concern over semiconductor demand is leaving North Asia’s hightech exporters jittery, according to a report by Bloomberg. The region has historically served as a bellwether for the global economy. South Korean majors Samsung Electronics Co. and SK Hynix Inc. have indicated plans to dial
Chipmakers warn about global economy back investment outlays. Across the East China Sea, the world’s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co. also indicated a similar expectation. Other major chip manufacturers like Micron Technology, Nvidia, Intel Corp. and AMD warned of weaker export orders. Gartner Inc. trimmed its outlook for global semiconductor revenue growth to 7.4% in 2022, compared to 14% 3 months ago; and further down to 2.5% in 2023. This presents a gloomy picture, as Russia’s war on Ukraine continues and rising interest rates dampen activity.“Fewer new orders and large inventory pile-up mean Asia’s tech sector will see a long destocking cycle and shrinking profit margin.” said Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis SA.
Saudi Arabia to grow at fastest pace in 10 yrs
The study noted that maintaining the Kingdom’s long-term prosperity depends crucially on sustaining the reform momentum. Continued implementation of Vision 2030 policies should liberalize the economy further and pave the way to more stable growth.
HSBC has predicted that Singapore will continue to scale the ranks of top destinations for expats in tech and finance as global businesses and professionals move out of Hong Kong, and wealthy Chinese citizens shift their capital to theSingaporecountry. might soon have the largest proportion of millionaires in its adult population, but the wealth of its neighbours is also growing.
touristInternationalarrivals
The real risk we're responding to is that inflation becomes embedded and it doesn't come down in the way that we would otherwise expect.
The talks will be held on issues like trade facilitation, good regulatory practices, and removing discriminatory barriers to trade. However, the negotiating mandate did not mention the possibility of a broad free trade deal.
NEWS BUZZ Sep, 2022 • India Business & Trade | 5
"We plan to pursue an ambitious schedule for achieving highstandard commitments and meaningful outcomes covering the eleven trade areas in the negotiating mandate that will help build a fairer, more prosperous and resilient 21st century economy," Deputy USTR Sarah Bianchi said. Key areas up for discussion between the two partners include trade facilitation, good regulatory practices, enhancing SME trade, digital trade, stronger agricultural trade and robust labour & environment standards.
BarometerTourismWorld^UNWTOdata);(projectedResearchMarket*TransparencySources:
In the next eight years, over 13% of Singapore’s adult population will have a net worth of US$ 1 million or more, surpassing the proportion of millionaires in the US, China, and 12 other Asia-Pacific economies, according to a new report by global bank HSBC. By 2030, the bank expects that only 8.8% of US adults and 4.4% of Chinese adults will be millionaires.Australia, with around 12.5% of its adult population as millionaires by that time, will be second to Singaporean dream NUMBER 6,000%GAME Growth in globalmarkethydrogengreenby2031.*
US, Taiwan to start trade talks
Governor, Bank of England
The United States and Taiwan have agreed to start trade talks under a new initiative - the US-Taiwan Initiative on 21st-Century Trade. The two trade partners want to reach agreements with "economically meaningful outcomes".Interestingly, this was just days after the Biden administration excluded the Taipei from its Asiafocused economic plan designed to counter China's growing influence in the region.
Living the
INAndrewQUOTESBaile
Singapore and Hong Kong will come in third with 11.1%.
250 mn in first 5 months of 2022, at 46% of pre-COVIDlevels.^
News
The PM also made a strong pitch for inculcating a culture of robust research and innovation, as India moves towards Amrit Kaal, where every Indian is aspiring for
On the occasion of the 76th Independence Day, Prime Minister Narendra Modi stated that by the year 2047, when India will be celebrating the centenary year of its independence, it must achieve the status of a developed country. He called upon the nation to move forward with five pledges to fulfil the freedom fighters’ dreams by the year 2047, while addressing the nation from Red Fort, Delhi. After hoisting the national flag PM Modi announced the panch pran or five pledges on which the citizens need to focus in the next 25 years. “We should focus on the five pledges – a resolve for a developed India; removing any trace of the colonial mindset; taking pride in our legacy; our strength of unity; and fulfilling the duties of citizens with honesty, which should be done by the Prime Minister and Chief Ministers as well,” said the PM.
Union Minister of Communications Ashwini Vaishnaw announced that the spectrum sold was “good enough” to cover all circles across India, expecting a “good coverage” of 5G in the coming 2-3 years. Aggregate first annual installment accruing to the Government from bidders amounts to Rs 13,365 crore. The auction ended with bids of over Rs 1.5 lakh crore.
National
Reliance Jio emerges top bidder in 5G auction 900 MHz, 1,800 MHz, 2,100 MHz, 3,300 MHz and 26 GHz bands. Vodafone Idea spent Rs 18,799 crore and bid for the 1,800 MHz, 2,100 MHz, 2,500 MHz, 3,300 MHz and 26 GHz bands, acquiring a total of 6,228 MHz of airwaves. Adani Data Networks Limited, acquired spectrum in the 26 GHz band and spent Rs 212 crore.
Panch Pran for a 'developed' India the fast progress of a new India. He added that an aspirational society was India’s biggest asset and presented a new slogan - ‘Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan’. buzz
NEWS BRIEF 6 | India Business & Trade • Sep, 2022
The 5G spectrum auction, which was India's largest yet, concluded with Reliance Jio acquiring almost half of the airwaves for over Rs 88,000 crore. It was the only one to acquire the spectrum in the premium 700 MHz band. The company spent Rs 88,078 crore and acquired a total of 24.7 GHz of spectrum in the 700 MHz, 800 MHz, 1,800 MHz, 3,300 MHz and 26 GHz bands. Bharti Airtel spent Rs 43,084 crore to acquire a total of 19.8 GHz of spectrum in the
India UK FTA by October
On July 29, India and the UK concluded the fifth round of talks on their free trade agreement.
July imports surge by 43.61%
2022 FACTS31 New Indiaoperationsexpectedmallstocommenceinin2022and2023.* IN QUOTES
Michael Miebach Chief Executive Officer, Mastercard India has the potential to become the biggest economydigitalintheworld. 50% Share of Indian firms expected to raise ICT budgetsyear.^this
Imports of crude and petroleum products during July were recorded at US$ 21.13 billion, up by 70.4% compared to July 2021. Sectors which recorded positive growth in exports include petroleum products, leather, electronic goods and coffee. On the other hand, exports in engineering, gems and jewellery, plastic, cashew and carpet segments have fallen. Exports during April-July 202223 rose by 20.13% to US$ 157.44 billion. Imports during the four months increased by 48.12% to US$ 256.43 billion. The trade deficit stood at US$ 98.99 billion, up from US$ 42 billion during for2021-22.April-JulyServicesexportsJuly,according to the data were at US$ 24.91 billion, showing a positive growth of 28.69% Y-o-Y. Imports stood at US$ 15.95 billion, growing by 40.02%.
According to data from the Department of Commerce, India’s exports grew by 2.14% y-o-y to US$ 36.27 billion in July. Imports, on the other hand, spiked by 43.61% to US$ 66.27 billion during the month. And the trade deficit almost tripled to US$ 30 billion due to over 70% rise in crude oil imports.
NEWS BUZZ Sep, 2022 • India Business & Trade | 7
The two countries aspire to seal the deal by the end of October, according to India’s Commerce and Industry Ministry.“Forthis round of negotiations, technical experts from both sides came together for detailed draft treaty text discussions in 85 separate sessions covering 15 policy areas,” said the Ministry in a release. The officials of the two trade partners will continue to work intensively throughout the summer towards their target to conclude the majority of talks on a comprehensive and balanced Free Trade Agreement. The agreement is expected to double India-UK bilateral trade to about US$ 100 billion by 2030. In their previous negotiations, the UK had agreed to eliminate duty on Indian rice and textile goods, whereas India is open to allow British apples, UK-manufactured medical devices, and machinery to be duty free in the country. They may also ink a pact on mutual recognition of higher education qualifications.
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the increasing importance of digitisation in the Indian banking system. It is clear that digitalization is the future of banking all over the world. This is reflected in the advent of open banking, introduction of BaaS (Banking as a Service), and the rise of the Indian fintech sector. The share of digital banks in India is 26% and expected
4. Internal barriers within bank departments
2. Brick and mortar vs Fully digitised banks
Thismanagement.reporthighlights
While the concept of digital banks is supported,increasinglyasizeable population still finds physical banks to be more secure.
CHALLENGES IN GROWTH OF DIGITAL BANKS
Digital banking is widely touted as the future of banking in India as more and more consumers recognise its benefits. But is the ecosystem ready?
A digital leap of faith
Ancient banking systems are written in COBOL programming language, which is very hard to adapt to modern technology.
1. Evolution from traditional banking system
Financial institutions need to provide effective training across their departments and staff.
Digital banks are facing fierce competition from non-financial institutions like Facebook and Whatsapp that allow users to transfer money online.
QUICK INSIGHTS 8 | India Business & Trade • Sep, 2022 to cross 46% by 2027. Digital banks offer the following key benefits: a) For customers • Higher sense of control over their funds • Access from anywhere, anytime • Faster processing • Hassle-free transactions • Higher security b) For financial institutions • Automating tasks • Keeping customers up-to-date • Higher customer retention • Reduced risk of fake currency via cashless economy • Better penetration in rural areas • Access to customer data to design personalised products Government initiatives like PMJDY and Digital India have played a major role in the development of the digital banking sector and the pandemic has catalysed the shift towards digital payment platforms. Moreover, competition from nonfinancial institutions has also accelerated the development of digital banking.
• Issuing a restricted digital bank licence to an applicant. This licence will be restricted in terms of value and volumes of customers serviced by the applicant.
Recently, NITI Aayog released a report on digital banks, recommending a roadmap and new reforms for regulatory regime and licensing in India. The key recommendations include:
• Enlistment of all the digital bank licensees in an RBI enacted regulatory framework.
3. Competition from nonfinancial institutions
• Issue of full-scale digital bank licence to licensees on satisfactory performance in terms of prudential, salient and technological risk
Going by the ‘passport’ factor As of 2022, India stands at 87th position in the Henley Passport Index, the global ranking of powerful passports, which is inconsistent with its global economic stature. national interest, engaging in FTAs and stepping towards the Quad for the Indo-Pacific space (with partner countries like the US, Japan and Australia) with utmost clear objectives and a reach for common prosperity.Thecountry also needs to up its investment game to further assert the impression of
Sep, 2022 • India Business & Trade | 9 QUICK INSIGHTS economic robustness. Moreover, Indian nationals opting for golden visas or migration programs can help enhance the power of Indian passport holders. The other factor that can help the country is visawaiver. Also, a post-pandemic recovery plan being in order may result in a leap in the rank over the next five years for the country.
INDIA’SitsRANKING ON PASSPORT POWER Source: Henley Passport Index 100806020400 2020 2019 20182022 2021 Passport rank Number of countries Indian passport holders can visit without a visa 87 90 85 83 81 60 60 58 59 60
PAVING WAY TO IMPROVEMENT India is trying to pave the way for taking itself to a higher position in the world passport power ranking. The present government has significantly tried to improve its trade relations across the world since it has been in power. For instance, treating foreign policy as a force for
INDIA’S PASSPORT POWER
The Henley Passport Index has been actively updating and monitoring the globe’s most travel-friendly passports since 2006. For the year 2022, it has mentioned Japan and Singapore, followed by Germany and South Korea, to have the most powerful passports in the world. These nations have acquired visa-free travel rights to 192 & 190 destinations respectively.
As of 2022, India stands at 87th position, along with Mauritius and Tajikistan, in the global ranking of powerful passports among all other nations. Henley has observed the Indian passport to be holding the position of travel-friendly mobility in 67 countries.India’sranking in the index has slipped and then bounced back in the past 5 years. However, the number of countries to which the Indian passport holders can seek to travel, certainly balances the equation here. Now, if we explore the reasons for India’s average mobility score in the past 2 years, the pandemic has played a precarious role. The global passport power ranking of India fell to 90th position in 2021, from 83rd position in 2019 and 85th position in 2020. Also, as outlined by Chris Dix from VFS Global, the visa applications in the country have been averaging as high as 20,000 per day during the holiday season. This could also stand in the way of improving the power ranking of India at the global level.
GLOBAL CROSS-BORDER PAYMENTS FLOW Source: Ernst and Young (All figures are in US$ trillion) 100140120160 2020 2021 20222018 2019 127.8 134.3 141,1 148.3 155.9
10 | India Business & Trade • Sep, 2022 QUICK INSIGHTS
• Documents are issued by an importer, exporter and carrier, for payment clearance. Blockchain can help expedite the entire chain.
Let us see how: Global trading mechanism • It can push down the delay in transaction time by real-time verification of financial documents.
Cross-border transactions
• Earlier, third-party transactions concerning funding and payment have paved the way to the risk of fraud. Blockchain eliminates this correspondent relationship.
Documentation management
• Blockchain shall also encourage a paperless documentation process such as for customs and trade.
The international trade market has marked a rise of about US$ 7.7 trillion dollars as of Q1, 2022 (UNCTAD). The fragile position due to COVID-19 and the Ukraine-Russia War is accentuated by implementation of outdated technologies. Execution of international contracts and the trading mechanism as well as the payment system have been affected by operational inefficiencies due to heavy dependence on manual processes & documentation. Here, blockchain can play a major role. Blockchain has been defined as a decentralized system that enables involved parties to independently build a network and store the required information. The entire
From cross-border transactions to customs clearance, transportation and logistics, blockchain technology has myriad applications in making global trade smarter. This makes it a powerful tool in the hand of MSMEs across the world to increase their footprint in global trade, as technology eases the barriers to trade. However, these opportunities can only be realized if they have access to the right technical knowhow and internet access. Further, advanced technologies, in particular the rise of quantum computing, could pose security challenges for this technology.
• It can help execute smart contracts to reduce the costs involved in the complicated legal framework.
Post-quantum technologies can be a way to safeguard blockchain from such risks. Lastly, a comprehensive global legal system needs to be in place to ensure transparency and efficiency of blockchains.
• A smart bill of lading can help digitize transport documents.
Blockchain technology has myriad applications that help make global trade smarter. This makes it a powerful tool in the hand of MSMEs to increase their international footprint. database is built and encrypted with the help of complex algorithms that intend to simplify data security and integrity of information. The underlying principles of blockchain technology involve decentralization and disintermediation, transparency of data, immutability, consensus in trade as well as reliability and trust. It can bring a spur in the global market through smoother operations, data transparency, efficiency in cross-border transactions, and standardization of business.
• Through implementation of blockchain technology in payment systems, transaction fees have also been lowered, and will thus attract larger participation. Not only the corporates but government organisations have also steadily moved towards the technology.
Making global trade smarter
Sep, 2022 • India Business & Trade | 11 QUICK INSIGHTS
dynamic ecosystem for the growth of edtech. The role of parents should be clearly highlighted in promoting online learning. Two-way interaction is needed for successful outcomes. Since most people in villages have never had the required exposure to advanced digital devices, bringing a reform for the growth of edtech in India is quite challenging in the short term. But it is heartening to note that numerous startups and edtech firms are taking government initiatives forward with central funding. Enrolment rates in distance learning programmes has also increased considerably. As per reports, 11% of the total enrolment in higher education is credited to distance learning courses. With more equitable access through digitisation, the face of Indian education could change in the years to come. But India needs to ensure a rapid proliferation of digital access and rise in digital literacy. Moreover, online education should not compromise on either quality or engagement. It is a learning phase for all involved.
With over 1.6 billion students exposed to virtual classrooms, is edtech well primed to catalyse equitable access to education in the post-pandemic years? high-speed internet connection facilities are yet to set foot in many parts of the country. Many schools have reported challenges faced by teachers due to low digital literacy. While these are early days, efforts made by the government in enhancing digital awareness and outreach are yielding fruits. It has launched 28 digital programmes to encourage e-learning, including SWAYAM and e-Yantra. The e-Vidya (one class, one TV channel) programme offers ‘education for all’ to students. Additionally, it launched DESH-Stack e-portal to give API certification training. E-labs are also being developed to improve critical thinking in math and science.
The edtech business in India rose to prominence during the pandemic, which exposed our school system to e-learning modules. Edtech companies have played a major role in bridging the gaps in the school system. As reports revealed, around 80% of schools in India lacked technical support and internet in 2020. As the ecosystem has evolved over the two years, this condition has improved substantially.
Government aids and edtech learning campaigns have spread online learning across different parts of the country. Online course enrolment has observed a 17-fold growth in 2021. Even as schools in India have partially opened, the impact of e-learning is still strong. Many schools have created an online streaming portal for students to participate in classes. However, the socioeconomic divide is still strong. While urban students are actively participating in online learning programmes, rural children are yet to become tech-friendly. Technology and Still sunny days for online learning?
The biggest challenge is explaining the benefits of e-learning to people accustomed to traditional methods. Government schools will need to ensure availability of sufficient computers and internet access on the premises. Teachers’ training programs, innovative mechanisms and regional content are required. Stakeholders need to contribute towards building a
While the steel sector is currently walking a tightrope, the medium-term outlook remains steady.
World steel production & demand
World crude steel production for 64 countries was 158.1 million tonnes (MT) in June 2022, a 5.9% decrease YoY. As per World Steel Association data, India is the only country that registered positive growth (6%) in steel output during June 2022.Major steel producing countries like China, US, Russia and South Korea have witnessed a fall in production in June. Russia registered the highest fall among top 10 steel producing countries (Table 3 and graph).
World AssociationSteel(WSA) Short Range Outlook April 2022 report has projected global steel demand in 2022 to be about 1,840.2 MT. Forecasting a growth rate of 2.2%, demand for steel in 2023 is estimated to reach 1,881.4 MT.
TOP 5 STEEL PRODUCERS IN JUNE 2022 Values in million tonnes 1. China 90.7 2. India 10 3. USA 6.9 4. Russia 5 5. S. Korea 5.6 2 3 4 5 1 GLOBAL DEMAND FOR STEEL IN 2022 (PROJECTED) Source: World Steel Association; Values in million tonnes Asia & Oceania 1,313.1 39.1 50.2 48.5 44.6 161.5 141 42.3 MiddleEast Central & South AmericaUSMCARussia & other CIS (4) + UkraineOther EuropeEuropean Union (27) & UK Africa BY TALOTMA LAL
12 | India Business & Trade • Sep, 2022 DATA POINT
Weathering the perfect storm?
The global steel industry faced a highly volatile market in the first half of 2022 due to various factors including geopolitical conflict, raw material costs and supply chain constraints.Thewar between Russia and Ukraine has impacted raw material prices and availability. Europe is experiencing inflation at an all-time high, indicating economic instability. China, the global leader in steel production, is also struggling, following a series of COVID lockdowns in major cities like Shanghai and Beijing. Nonetheless the medium-term outlook is stable with a projected growth of 3.13% for the global steel market, which is expected to reach US$ 1.05 trillion by 2027 (Research & Markets), led by growth in end-user industries and technology-led improvements in production.
Key markets like West Asia, Europe and Vietnam have seen less bookings for Indian Hot Rolled Coil (HRC). India’s finished steel exports fell by 75% yoy in July 2022 due to the combined impact of the export duty, seasonal weakness in demand and global slowdown. This was the fourth straight month of decline in exports of Indian steel. Around 380,000 MT were exported in July, while imports were recorded at 444,000 MT, making India a net importer. However, alloyed steel (with no export duty levy) and stainless steel exports defied the trend and saw a 33% rise m-o-m and a 72% leap y-o-y, respectively. According to data from the Ministry, 223,000 tonnes of alloyed/stainless steel exports were recorded in July 2022. In June 2022 it was at 168,000 tonnes.
Sep, 2022 • India Business & Trade | 13 STEEL
A decline in export orders has been witnessed since May 2022, consequent to the 15% export levy on a number of finished steel products.
Indian steel industry: From inflation blues to oversupply woes The larger picture Market meltdown
• With expected invesments in infrastructure, domestic steel demand is expected to increase at a CAGR of 10% till 2026. Steel production in India remaines stagnant on a month-on-month basis in July 2022 at 9.97 mt, down 0.7% year-on-year, after the imposition of export duty on steel in May this year, thereby leading to oversupply. Low global demand and a drop in iron ore prices contributed to the stagnation in the sector on a m-o-m basis. Cold-rolled coil (CRCs) prices were down by Rs 2,650/ tonne (4% m-o-m), now in the Rs. 65,35066,500 per tonne range for August deliveries. Similarly, Hot Rolled Coil (HRC) prices declined by 3-4% M-o-M, and were in the range of Rs. 58,000–59,000 per tonne; amongst the lowest so far in 2022. Rebar prices stood at Rs. 56,900 per tonne, down by 3-4% m-o-m.
• Indian steel mills have announced large scale expansion plans, which would lead to capacity increasing by 40 million tonnes per annum (MTPA) during 2022-2026.
• India’s finished steel exports are expected to decrease by 25% y-o-y in FY 2023. However export of semis is likely to increase by 40% yoy in the current fiscal.
• Global steel market is projected to post a CAGR of 4.1% to reach 2.2 billion MT by 2026.
1500100020000500IRON & STEEL EXPORTS FROMMARINDIA APR MAY JUNJAN FEB Source: Ministry of Commerce & Industry; figures in US$ million 1,624 1,758 1,901 1,786 1,817 1,434 AssociationSteelWorldNewswire,GlobalMarkets,&ResearchICRA,India,EXIMreports,MediaSources:
• Steel companies in India are expecting a significant margin correction in FY 2023.
INDIA: TOP CARBON MARKET? India has generated approximately 30 million carbon credits, the second
To unleash the true potential of carbon trade in the country, an emissions trading scheme that addresses the regulation and transparency requirements is the need of the hour.
PERSPECTIVES 14 | India Business & Trade • Sep, 2022 highest transacted volumes in the world. It is one of the largest beneficiaries of total global carbon trade through CDM, claiming about 31%. It signed the KP agreement on August 2002. India is expected to gain at least US$ 5-10 billion from carbon trading (Rs 22,500-45,000 crore) over a period of time. This is attributed to myriad advantages that carbon markets offer as well as the fact that India is one of the largest generators of renewable energy. Explaining its advantage, Ashwini Hingne, Senior Manager, Climate, World Resources Institute India states, “Carbon markets are an economic instrument to incentivise emission reduction, because having a carbon price will
BY NIKHAAR GOGNA Putting a price on carbon emissions is one of the most cost-effective ways to meet the world’s climate goals, while fostering economic development. Recognizing this, countries around the world ratified the Kyoto Protocol (KP) on 16th February 2005 (initially adopted on 11th December, 1997), a landmark accord that acknowledged the global need to curb greenhouse gas MechanismTheemissions.CleanDevelopment (CDM) of the Kyoto Protocol allows a country with an emission-limitation commitment to implement an emission-reduction project in developing countries. It allows countries with unused emission units to sell this excess capacity to countries that exceed their targets through certified emission reduction (CERs) The protocol has, consequently, inspired many cap-and-trade schemes. According to the World Bank, there are 65 carbon pricing initiatives implemented across 45 national jurisdictions and 34 sub-jurisdictions. Some of the countries with emissions trading systems (already operating or under development) are EU, Canada, China, Japan, New Zealand, South Korea, Switzerland and the United States of America.
Making carbon trade work for sustainable growth
CO2 CO2CO2 CARBON ECONOMY
GROWTH PANGS Albeit India is one of the fastest growing carbon trading markets in India, as they are issued by an offshore entity. Another thing that the policy must ensure is the transparent allocation of permits. The policy needs to acknowledge that a high price for permits could damage economic competitiveness of SMEs, or the possibility that larger industries may accumulate permits to avoid reducing their emissions.
Companies associated with sustainability also gain a favourable perception in the eyes of their customers. According to a survey by the Carbon Trust, 56% of people said they would be more loyal to a brand if they could see at a glance that it was taking steps to reduce its carbon footprint. Similarly, McKinsey found that over 70% of consumers would pay an additional 5% for a green product than for a comparable non-green alternative. The model of reducing carbon emissions is gaining prominence in the country. For example, in 2016, Mahindra & Mahindra became the first Indian company to announce its internal carbon price of US$ 10 per ton of carbon emitted, while Tech Mahindra has committed to 22% reduction in GHGs by 2030 and 50% by 2050. In 2020, Indore Municipal Corporation became the first civic body in the country to generate a revenue of Rs 50 lakh through selling carbon credits by registering the projects under the Verified Carbon Standard (VCS). Indian Agricultural Research Institute (IARI) is collaborating with a private firm to build a marketplace for trading in carbon credits for farmers in the country. Both farmers and companies have something to gain. Among states, the Gujarat government has implemented a cap-and-trade programme, which allocates permits to companies in Surat’s textile industry to discharge a specific amount of pollutants (276 tons per industrial unit). It enabled participating units to reduce particulate emissions by 24%, by paying them to install pollutionreducing technology or enabling them to purchase ‘emission permits’ to go beyond their limit for a specific pollutant.
A LOW CARBON CAP COULD HURT THE ECONOMY, WHILE A HIGH ONE WOULD DELAYREDUCTIONSEMISSIONS in the world, it does not have an effective and transparent legal framework. Adv. Vanita Bhargava, Partner, Dispute Resolution, Environment & Tax Litigation, Khaitan & Co explains, “India originated carbon credits currently trade on voluntary international markets. However, such markets lack regulation and transparency requirements.” This is necessary for growth of the market. The policy needs to clarify, for example, whether trade of credits to off-shore units would amount to exports and if CERs would be considered to be goods originating essentially increase the price for manufacturers and industries to produce their goods. So, in order to reduce their prices, they will cut down on their output and this in turn will bring down carbon emissions.”
Shailendra Singh Rao, founder of Creduce, opines, “There has been an uncertainty about tax on carbon credits income. A particular section of carbon credit investors want the income generated from carbon credit to be tax free.”
The government will also have to decide carefully on setting an initial emissions cap – a low cap could hurt India’s economic competitiveness, while a high one would delay emissions reductions and dilute the effectiveness of the program. Lastly, the success of the policy framework will depend on how effectively it is applied across sectors of the economy.
Sep, 2022 • India Business & Trade | 15
Harnessing technology for efficiency in dairy value chains along with the right policy support and strong infrastructure can make India a leading dairy exporter.
PERSPECTIVES 16 | India Business & Trade • Sep, 2022 between 2017 to 2019, average yield per in-milk animal in the US was eight times higher than India. New Zealand, the largest exporter of milk & milk products, recorded 3 times higher average yield. The major challenges faced across the dairy value chain are:
• Milk production by small and W hile India is the largest milk producer globally, it was ranked 34th in the world in the export of milk in 2021, and 12th in the export of valueadded dairy products in 2019. India’s potential for exports is much higher. Major exporters of milk and dairy products, viz. New Zealand, the Netherlands, Germany, Belgium, France, Denmark, Australia, the UK, and the US are characterised by high exportable surplus, efficient dairy value chains and strong export infrastructure. The globally acclaimed White Revolution had enabled India to become the largest producer of milk in the world. The dairy sector in India is dominated by small milk producers who supply milk to over 1.9 lakh dairy cooperative societies
• Shortage of basic breeding activities like livestock identification, performance recording and evaluation.
• Unorganized dairy farming and small livestock holding makes it a challenge to automate processes.
BY DR DEBESH ROY across the country, providing livelihood to millions of families. Milk production has grown at a significant CAGR of ~4.7% since the 1970s, mainly with government support through various incentives and developmental schemes. Further, adoption of modern technology and digitalization across the supply chain is facilitating growth in milk productivity, improvement in farm management practices, better record keeping and enhanced technology for breed selection. According to Integrated Sample Survey, the average yield per animal in India is 1.5 times lower than the global average. In 2019-20, average annual productivity of Indian cattle stood at 1,777 kg per animal as against the world average of 2,699 kg per animal. According to OECD,
• Inadequate medical facilities and shortage of qualified veterinarians and para vets has drastically hit the production.
• Low availability/high cost of cattle feed and fodder.
Reinvigorating India’s dairy value chain for export competitiveness
POLICY AGENDA India is one of the least cost producers of raw milk. Steady rise in demand for value added products such as ice cream, ghee, curd, paneer, cheese, flavoured milk, chocolates, etc., is expected to drive strong industry growth, but liquid milk is expected to retain highest share. Other products focusing on boosting immunity and nutrition change and sustainability issues. To boost the export of dairy products and make the sector globally competitive, GoI needs to consider development of Dairy Export Zones (DEZs) in collaboration with state governments, in leading milk producing states like UP, Rajasthan, MP, Gujarat, AP, Punjab, Maharashtra, Haryana, Tamil Nadu, and West Bengal. Such zones could involve the creation of common infrastructure like a cold chain, chilling plants, processing facilities, R&D facilities, logistics, and connectivity to ports and airports. Leading dairy producers could set up modern hi-tech dairy processing units in the DEZs, for producing globally competitive high-value dairy products. Units in DEZs could enter into contract farming arrangements with dairy FPOs/FPCs/cooperatives for sourcing milk. This would be mutually beneficial in terms of cost efficiency and higher export revenue to the dairy companies, and higher income for farmers.
Sep, 2022 • India Business & Trade | 17 DAIRY VALUE CHAIN
India’sknowledge.lowvalue
• Capacity utilization of the processing plants in lean season is lower on account of reduced supply of milk.
Development of an efficient dairy export value chain with a focus on globally competitive value-added dairy products, strong infrastructure, digitalisation along the value chain, and adoption of sustainable practices, through coordinated efforts by stakeholders, along with financial support from NABARD & banks, would go a long way in transforming India into a leading exporter of dairy products.
INDIA’S EXPORTS OF DAIRY PRODUCTS Source: Data accessed from APEDA Agri Exchange 2012-13 Dairy products (Value $ Mn) Annual Growth (%) 6004002000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 546 330.1 110.2 -63.7 -11.8 17.4 37.0 36.4 -46.0 7.9 94.4 260 198 115 135 186 346 187 201 392
• Lack of commercialization of ethnic dairy products.
like probiotics and nutraceutical products could also be in high demand. Higher exportable surplus can be generated through improved breeding and feeding programmes.
• Shortage of electricity in many chilling plants, which, hence, cannot run optimally.
GoI has envisaged the double of milk processing capacity to 108 million MT by 2025. A number of initiatives have been taken to develop dairy infrastructure and dairy value chain, like Dairy Processing and Infrastructure Development Fund; National Programme for Dairy Development; Pradhan Mantri Kisan Sampada Yojana (PMKSY); Cold Storage Scheme; Kisan Credit Cards (KCC) and PLI Scheme for Food Processing Industry. Significant investments are envisaged for new processing capacities & stronger procurement platformsincreasingroleTechnologyinfrastructure.willplayacrucialinretaildistributionwithadoptionofe-commercebyendconsumers.For the development of an efficient dairy export value chain, digitalization will undoubtedly play a crucial role in enabling end-to-end traceability.
The India-UAE CEPA, the India-Australia ECTA, and the forthcoming CEPAs with the UK, the EU, and Canada would create significant opportunities for the export of dairy products from India. It is, therefore, imperative to raise export competitiveness of dairy products through creation of efficient dairy export value chain, along with strategic marketing and branding for international markets.
Dr. Debesh Roy is Chairman, Institute for Pioneering Insightful Research & Edutech (InsPIRE). Views expressed are personal.
• Maintaining cold chain at retail level is a challenge due to lack of of dairy exports may be attributed mainly to high domestic consumption demand for milk and milk products, very low yield of milk output and low exportable surplus of processed dairy products due to increasing demand in urban areas.
• Inadequate quality testing facilities & infrastructure at milk collection centres.
The impact of climate change, viz. fall in milk production, scarcity of water and dry fodder for the cattle, would need to be addressed. A strategy needs to be developed to deal with the situation arising out of climate variability. Learnings from SDC in the Netherlands and GMS adopted by Nestle, would enable the dairy industry to address climate marginal farmers makes logistics of daily collection and chilling of milk at farm level a huge challenge.
Export/import invoicing of goods and services may now take place in the Indian Rupee. 1 The exchange rates of currencies of the two trading partner countries may be market determined. 2 The settlement of international trade transactions under this arrangement will be done in Indian Rupees.
HIGHLIGHTS
Foreign Exchange Department of the Reserve Bank of India, Central Office at IndianMumbai.exporters who want to use the rupee settlement mechanism for exporting goods and services, shall be paid the export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country. Similarly, Indian entities undertaking imports of goods and services through this mechanism shall make their payments in INR, which shall be credited into the Special Vostro account of the correspondent bank of the partner country, against the invoices for supply of goods or services from the overseas seller/supplier.
3
The Uniform Customs and Practice for Documentary Credits (UCPDC) framework will provide the guiding principles for issuance of Letter of Credit (LC) and any other trade-related documentation, and it The Reserve Bank of India, in a circular dated 11th July 2022, set up a system for settlement, invoicing and payment of exports and imports in the Indian Rupee. Until now, for all international trades, the settlements, invoicing and payments were done in the respective foreign currencies (US dollar, euro, British pound, Australian dollar, Canadian dollar, Singapore dollar, etc.). Henceforth, such international trade transactions can be traded and settled in Indian Rupees as well.
The framework of FEMA, 1999 Act has been modified to permit AD (authorized dealer) banks in India to open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country to facilitate settlements of international trade transactions with any country. Prior to setting up of the rupee settlement mechanism, the AD bank shall require an approval from the Rupee trade settlement can be historic for Indian traders For any country eager to trade with India and looking for easy trade settlements, the new system will allow a comfortable mechanism using the Indian Rupee. OF INTERNATIONALMECHANISMTRADE
PERSPECTIVES 18 | India Business & Trade • Sep, 2022
Under the new rupee payment mechanism, ‘set-off’ of export receivables against import payables in respect of the same overseas buyer and supplier with facility to make/receive payment of the balance of export receivables/import payables, if any, will be permissible, subject to the existing conditions mentioned in ‘Set-off of export receivables against import payables’ under Master Direction on Export of Goods and Services, 2016. may be decided mutually between banks of the partner trading countries. Such banks of partner countries may also mutually agree for exchange of messages in a safe, secure and efficient manner. Through the international trade settlement in Rupee system, Indian exporters may receive advance payment against exports from overseas importers in Indian rupees. Indian banks, prior to allowing any such receipt of advance payment against exports, shall ensure that available funds in these accounts are first used towards payment obligations arising out of already executed export orders/export payments. This shall be in compliance with the conditions mentioned on ‘Receipt of advance against exports’ under Master Direction on Export of Goods and Services, 2016. The Indian bank maintaining the Special Vostro account of its correspondent bank shall, in addition to its usual due diligence measures, verify the claim of the Indian exporter with the advice received from the correspondent bank before releasing the advance payment. The Indian Bank shall also ensure that advance is released only as per the instructions of the overseas importer.
Jurisdictions on which FATF has called for counter measures.
Ritesh Victor is Co-Founder & Country Head – Market Risk Advisory & personal.expressedPvtMyforexeyeTPO-FintechLtd.Viewsare
Issue of Bank Guarantees for international trade transactions, undertaken through the new arrangement, is permitted subject to the compliance of the provisions of FEMA Notification of Master Direction on Guarantees & Coacceptances.IntheRupee Special Vostro account, any available surplus balance may be used for acceptable current and capital account transactions, with mutual agreement. Reporting of international trade and cross border transactions under the new arrangement will be as per the guidelines of FEMA 1999. An AD bank in India may be approached by any bank of a partner country for opening of a Special Rupee (INR) VOSTRO account. The Indian AD bank will seek an approval from the Central Bank (RBI) with details of the arrangement. Indian AD bank maintaining the special Vostro Account shall comply with all the due diligence processes and ensure that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on High Risk & Non-Co-operative
AVAILABLE BALANCES
4321
Sep, 2022 • India Business & Trade | 19 RUPEE TRADE SETTLEMENT
The RBI permitting Rupee settlements for international trade (exports and imports) is a huge step in internationalizing the Indian currency. Immediate benefits would be seen in oil trades with Russia and Iran. This is a colossal step in making the Indian Rupee a more acceptable currency worldwide and a considerable leap towards capital account convertibility.
CONCLUDING OBSERVATION
VOSTRO ACCOUNTS CAN BE UTILIZED FOR Payments for permissible investments Payments for projects Export/Import advance flow management Investment in Government Treasury Bills, Government securities, etc.
PERSPECTIVES 20 | India Business & Trade • Sep, 2022 countries are defined on the basis of ‘self-declaration’. In NAMA (Non-Agricultural Market Access) negotiations, the US has challenged the developing country status of China, India and Brazil and in 2019 submitted a memorandum on this issue, suggesting criteria to be adopted for defining developing countries.
While it is credible to define developing countries on the basis of sound criteria, it is also important to recognize the heterogeneity in development issues across these countries. As such, the Single Undertaking Principle may not be appropriate to address their diverse development challenges. For example, on the basis of aggregates, India’s GDP is third largest in the world (on PPP basis) but ranks 122 on GDP per capita. Similarly, there are many metrics where this fallacy is evident for India. It is, therefore, important for Under the changing geopolitical landscape, many countries are resorting to unilateral measures to address trade disputes. This has challenged WTO’s role in addressing trade conflicts. During the pandemic, many members of the global trade body resorted to export restrictions on medical supplies, PPEs and later vaccines. These measures directed at firm or industry level, used by countries at varying levels, can distort international competition and pricing.
1. Special and Differential Treatment (S&DT): S&DT is a core principle of WTO, which ensures a balance between developed & developing countries by providing concessions in enforcement and compliance with rules. While the principle isn’t being challenged, the lack of criteria in defining developing countries is at the core of the entire controversy.WTOhas adopted UN criteria for categorizing LDCs, but developing
international cooperation to deal with issues like digital trade, investment facilitation, regulatory cooperation, climate-trade linkages and implement reforms to make WTO an effective forum for trade cooperation. This recognition should form the basis for the agenda of WTO reform.
CONTROVERSIES IN WTO WORK PROGRAMME
Dr Sunitha Raju deliberates on the WTO’s work programme post-pandemic, the dilemma of diverse concerns of developing nations, and India’s role in addressing challenges.
Understanding WTO reforms and India’s challenging position
Similarly, subsidies deployed to address climate change issues will also affect international competition. Tax-subsidy policies are challenging issues for international cooperation, especially with conflicting interests in areas like taxation on digital services, data privacy regulation, localization and business orientation towards net zero targets. Global governance, therefore, has to recognize the need for
The Trade and Investment Working Group can engage with governments & business representatives and develop an approach for dialogue for controversial issues like S&DT, non-market economy, subsidies, SOEs & simultaneously work on mechanisms to cope with contingencies like the pandemic. The effort should be to facilitate WTO to engage in appropriate global trade governance.
The government’s role in these domain areas is critical and considering variations in development across countries, engaging in dialogue for designing mechanisms for better access is necessary. Countries have engaged in plurilateral discussions on this issue and India has not participated in these discussions. Considering the significance of e-commerce for India’s growth, this exclusion in global engagement can inhibit growth prospects.
3. Transparency & Monitoring: Member notifications are the main information used by WTO for deliberations in WTO committees and councils. The coverage gaps in these notifications are a reality. Improvement in transparency requires access to complete & relevant information on policies affecting global trade and competition to understand trade dynamics and promote effective policy dialogues. WTO should promote cross notifications by countries and collaborate with multilateral organizations like World Bank, IMF, UNCTAD & ESCAP for data support.
Dr Sunitha Raju is Professor, Indian Institute of Foreign Trade and Research,AdvancedCommitteeMember,forTradeTrade Promotion Council of India. Views expressed are personal.
INDIA’S LEADERSHIP IN THE G-20 CAN BE PIVOTAL IN CRITICALSOLUTIONSWORKABLEEXAMININGONISSUES
Dialogue among members and building mutual trust is necessary for making the multi-year review of Dispute Settlement Process effective. The importance of first stage panel process and role of WTO bodies and Secretariat is important for de-politicizing dispute settlement mechanism.
2. Rule Making Through Consensus: The WTO governance model of ‘Consensus’ decision making has often resulted in deadlocks due to wide differences between developed and developing countries. This has reduced its effectiveness and also led to repercussions like members shifting to bilateral and regional trade cooperation and the rising significance of Plurilateral Agreements. Further, operations of WTO have also been constrained by ‘Consensus’ decision making. For example, the appointment of Director General of WTO was blocked by the US and S. Korea in 2020 and the current crisis in appointment of judges to the Appellate Body is also a fall out of this. While the member-driven consensus approach is important, it should be applied mainly for substantive rules that apply to specific trade related policies. Other approaches can be explored for contentious policies/issues like domain-specific plurilateral agreements. When member stakeholders participate in plurilateral dialogues under the WTO platform and arrive at Agreements with provision for other members to join, this can emerge as a viable alternative for trade cooperation.
4. Dispute Settlement: Adjudication of trade conflicts is an important function of WTO. Although there are criticisms on jurisdictional parameters, the non-functioning of Appellate Body since 2019 is a hurdle that needs to be overcome.
On the other hand, it must be reaffirmed that the body of developing countries is represented by members at different stages of development having diverse concerns and priorities, wherein drawing a common shared goal or mechanism would be difficult. The effort should be to address specific trade concerns of members and work on sectoral concessions through dialogue and build mechanisms to match S&DT provisions to these different needs. The Single Undertaking Principle may not be able to accommodate the diverse needs of developmental concerns of this group.
Second, the challenges posed by new areas emerging in global trade dynamics can have far reaching implications for these countries, particularly India. For example, cross border digital trade (e-commerce) India to focus on sectors that need support under S&DT and provide market access in developed sectors.
accelerated following the pandemic in both B2B and B2C engagements across countries. Leveraging this for building operational resilience and building businesses has brought into focus the need to keep pace with the changing technology frontier, building digital infrastructure, cyber security, skill development, regulation and international engagement.
INDIA’S POSITION India has stood by the tradition of decision making by consensus and the commitment to development as core principles driving the multilateral trading system, and also considers S&DT as a non-negotiable right for all developing countries.
And third, G20 has an important role in addressing the challenges of multilateralism and preserving the effectiveness of WTO system. With membership of both developed and developing countries, G20 can emerge as a dialogue platform for resolving controversial issues. With India poised to take over the Presidentship of the group, its leadership in facilitating coherent discussion in identifying differences and priorities and examining workable solutions will be important.
Sep, 2022 • India Business & Trade | 21 WORLD TRADE ORGANISATION
Like Egyptians, Indians have a strong sense of culture and identity
DIPLOMATIC DISCOURSE 22 | India Business & Trade • Sep, 2022 adapt to such external shocks. The global supply chain crisis has also taught us to give more attention to localization of production of strategic and non-strategic goods in the different fields of agriculture, industry and health care. Moreover, the global food security crisis has shown the importance of diversifying our wheat imports and increasing local production.
HE Mr. Wael Hamed, Egypt’s ambassador to India, discusses Egypt’s strengths as an investment destination and future collaboration opportunities with India. it would have faced a severe problem when COVID hit. Similarly, now we are trying to increase wheat production for food security. So, we see these two seemingly opposing trends. As a matter of fact, it boils down to the difference between strategic products and consumer products. We can remain open to and sustain globalisation in consumer products, but in some strategic products, we will have to be more self-reliant to protect ourselves. I think India is also doing the same thing when it comes to a strategic sector like defence. So, recent global economic challenges – particularly COVID and the Ukraine crisis – have shown the crucial importance for developing nations such as Egypt and India, to diversify their economies to be able to
IBT: How have India-Egypt trade relations evolved over the past decade? Which industries have unrealized potential? HE Wael Hamed: Bilateral trade witnessed positive growth rates with every passing year. Trade volume in FY 2021-22 recorded US$ 7.26 billion, a significant increase from US$ 4.15 billion in 2020-2021.
IBT: What have been Egypt’s learnings from the past three years of trade volatility? HE Wael Hamed: Over the past 2-3 years, we see that crises are increasingly international and not local in nature. COVID-19 started in China; just two or three months later, it jumped to the EU, then to the US and back to Asia. It’s the same with environmental problems. Yet at the same time, we have seen an increased trend towards localization of production because every country wants to protect itself as much as possible. This comes with some positive and negative consequences. When it comes to certain aspects of production, it is important for countries to be self-sufficient. For example, if Egypt was not selfsufficient in many medical products,
HE Wael Hamed: The Suez Canal Economic Zone is a well-established location for foreign investors and is very encouraging in terms of location, infrastructure & logistics. Focus sectors in the SC Zone are pharma, agribusiness, logistics, petrochemicals, automotive, and textiles, food processing, and green hydrogen/ammonia etc. Corporate tax, VAT and customs tax incentives are there for investors along with incentives for labour-intensive projects using local components and export support programme etc.
IBT: What are Egypt’s major investment advantages and incentives for foreign firms?
We are exploring ways to strengthen our trade, business, and investment ties and explore new opportunities for cooperation in sectors, such as IT, pharmaceuticals, education, and tourism. Tourism accounts for around 12% of Egypt’s annual GDP and tourists from Russia and Ukraine make up around 40% of tourists in Egypt. With the outbreak of the war, it was put under severe pressure. And tourism is not only hotels. It’s restaurants, cab drivers, shopkeepers – a lot of things. We have been trying to tap new and lucrative markets. India is one of them, with potentially around 40 million outbound tourists. In my view, Indian tourists are very promising and have a distinct approach. The first thing they talk about is Egypt’s unique history, culture, heritage, which make it a unique tourist destination.
IBT: How do you see Egypt-India collaboration for new sectors like AI, ML, and green tech? HE Wael Hamed: I see both countries not only as potential partners, but also as pioneers. For example, India is one of the leading
EGYPT Sep, 2022 • India Business & Trade | 23
Prime Minister Modi has called for the creation of the International Solar Alliance Initiative – One Sun, One World, One Grid. Egypt is interested in cooperating with India in this initiative, because we are one of the biggest producers of solar energy in the region. In fact, we have one of the largest solar parks in the world. Also, Egypt is one of the major countries attracting investments in green hydrogen, where Indian companies are also interested. Definitely, this is a futuristic technology to tackle the environmental crisis. In other aspects as well, there is a huge potential. In IT, India has experience, but Egypt also has a very good infrastructure, not only in terms of application, but also location. One can see the Suez Canal, not only as a connection between the East and the West for maritime trade, but also in terms of data connectivity. Also, we have a labour force of educated people including software engineers, call centres, etc that are needed for a dynamic IT sector. And then there is pharmaceuticals. India is rightly called the ‘world’s pharmacy’ and is also well-known for its indigenous and alternative medicine systems (AYUSH). That’s why, we seek greater cooperation with India to develop, research and manufacture pharmaceutical products. Now we’re thinking about cooperation projects between Serum Institute of India and the Egyptian Holding Company for Biological Products and Vaccines (VACSERA) that’s responsible for production of vaccines in Egypt. So, there are new areas of higher technology that both countries are coming up with. We have also shown interest in cooperation between the Egyptian Ministry of Education and the Indian Institute of Technology (IIT) to establish a branch of the IIT in Egypt. If we have an IIT, it will attract students from Africa and the Middle East apart from Egypt.
Conversely, over the past 2-3 years, there is equally a sense of curiosity in Egyptian tourists for India. Earlier, most of of them went to Europe and the US. The second thing is, of course, food security. Egypt is one of the major, if not biggest importers of wheat with annual imports of 12-13 million tonnes. With the Ukraine crisis, the question of food security has become increasingly important. Last April, Egypt approved India as a wheat supplier after a technical delegation concluded that India’s wheat meets essential SPS requirements & other food quality standards. This can lead to a strategic relationship that can extend over years and years. Thirdly, Egypt is self sufficient in natural gas and supplies to India at reasonable prices. To facilitate visits of business and trade delegations and tourism, Egypt’s national flight carrier, EGYPTAIR, resumed direct flights between Cairo and Mumbai last May. It is currently negotiating a direct link between Cairo and Delhi. We have further relaxed visa procedures to attract more Indian businesspeople.
Egypt has access to large key markets through various regional and bilateral FTAs with the US, European, Arab and African countries; which secures benefits to Egyptian-based producers supplying to these markets. This is a market of 1.3 billion people, if we had a view of Africa, Europe and the Middle East all together, which is equivalent to the countries in the world in solar energy.
HE Mr. Wael Hamed is Ambassador of Egypt to India. Views expressed are personal. size of the Indian market. On top of that, it encompasses high per-capita income markets like Europe and the Middle East. Egypt is also located on key international logistics routes, particularly the Suez Canal. If the Indian producer comes to Egypt, he will be able to access the European market duty free, because Egypt already has an FTA with the EU. Moreover, with Egypt, you are basically cutting down the distance between India and Europe into half, thereby cutting down costs of fuel, shipments, insurance and time.
Is sustainable fashion an inevitable necessity or just another fad?
Given the rise in environmentally conscious consumers, growth prospects of the sustainable fashion industry seem promising.
BY NIKHAAR GOGNA market, accounting for 31.6% of the total size in 2020, followed by Western Europe. The survey predicts that during 2020-25, the fastest-growing regions in the ethical fashion market are likely to be Eastern Europe (13.6%) and South America (12.1%), followed by Asia Pacific (11.9%) and Africa (11.9%) Within this segment, organic fabric is expected to be the fastest growing, at a CAGR of 18.4% during 2020-2025, followed by the ecofriendly segment (12.2%). Further, the women segment is expected to drive the ethical fashion market, growing at a CAGR of 10.9%.
FOCUS SECTOR 24 | India Business & Trade • Sep, 2022
GREENWASHING MENACE
While sustainable fashion is a mushrooming industry, one of According to industry estimates, approximately 2.2 billion meters of denim fabric are produced annually. But from cultivation to production, a pair of jeans uses about 7600 liters of water, making denim one of the most water-intensive industries in the world. Similarly, according to the World Wide Fund for Nature, it takes more than 20,000 liters of water to produce just 1 kg of cotton.
The World Bank states that textile manufacturing and the fashion industry accounts for 10% of carbon emissions and one-fifth of the 300 million tons of plastic produced globally each Customersyear.across the world are becoming more sensitive towards the environmental impact of the fashion industry. For instance, India Sustainability Report 2020 found that 45% respondents want to adopt recyclable fashion and 22% would prefer upcycled garments. Likewise, 64% of those polled across Hong Kong, London, New York, Shanghai and Tokyo regard themselves as supportive of sustainable fashion, according to a KPMG Survey. The global ethical fashion market is expected to grow from US$ 6.4 billion in 2020 to US$ 15.6 billion in 2030. Ethical fashion refers to “the designing and manufacturing of clothes while caring for the people and communities involved in the process, and while also minimizing its environmental impact”. Asia Pacific was the largest region in the global ethical fashion
I am a shopaholic and need retail therapy from time to time 9% I cannot repeat the same clothes or accessories 22% I need to buy new clothes, accessories to create a good impression 36% Every season I need to add new variety to my clothes 41% I buy when a new fashion trend sets in45% I do not have enough garments or footwear accessoriesor47% I am browsing a market or mall or looking online and I like it 49% WHY WE BUY NEW CLOTHES? involved in producing sustainable clothes, as these items aren’t mass produced. Further, there are gaps in the sustainable fashion supply chain. So, those venturing into this industry need to start from the scratch and go the extra mile to establish the value chain.
Manisha Kinnu, Campus Director, NIFT
WHILE A SECTION OF URBAN CONSUMERS IS WAKING UP TO THE
SLOWER THAN FAST FASHION
:Source 2020ReportSustainabilityIndia
Sep, 2022 • India Business & Trade | 25 SUSTAINABLE FASHION the key challenges to its growth is greenwashing, a term coined in 1986 by environmentalist Jay Westervelt. It refers to misleading advertisements or false claims by companies on their environmentfriendliness. In 2019, for example, a very eminent global apparel brand introduced its ‘Conscious Collection’ featuring leather-like Pinatex products, made from orange peelings and pineapple leaves. It drew flak, as Pinatex contains plastic and petroleum-based agents and is Anothernon-biodegradable.hurdleintheadoption of sustainable fashion is the high cost the tunnel. One such measure is to develop ecolabels to make brands accountable. “Ecolabels are marks placed on product packaging or in e-catalogs that can help consumers and institutional purchasers quickly and easily identify those products that meet specific environmental performance criteria and are therefore deemed environmentally preferable,” according to the US Environmental Protection Agency. At the same time, the industry must also invest in educating customers about the need for adopting sustainable fashion. Brands must also invest in R&D to expedite the time taken to produce sustainable clothing and come up with various affordable options. Finally, fashion influencers and celebrities need to be roped in to encourage young consumers to purchase them, thereby ensuring much needed traction.
OPERATES,CHALLENGESENVIRONMENTALWITHWHICHTHEFASHIONINDUSTRYALACKOFECO-FRIENDLYOPTIONSLIMITSTHEPENETRATIONOFSUSTAINABLEFASHION.
The India Sustainability Report 2020 shows that factors like the need to create a good impression in society, keep up with novel fashion trends and the convenience of online shopping are the top drivers of fast fashion trend in the country. Customers are attracted to such clothes since they are very affordable, offer knock-offs of popular international brands and offer an extensive variety. On the contrary, some customers regard sustainable clothes as being made of cotton or not looking expensive enough to justify their high price. The long process of creating such garments (6-8 months) and not keeping up with the latest fashion fads also demotivates purchase. So customers need to be educated to expect seasonality and speed in fashion, to appreciate the beauty and value in slow yet sustainable fashion. While roadblocks remain to the success of sustainable fashion, there is certainly light at the end of
IBT: How can India brand itself as a hotspot for sustainable fashion? Manisha Kinnu: Sustainability has been a way of life for traditional societies like ours. Even now, India has been a champion of sustainable fashion particularly through the encouragement of its localised handloom and handicrafts. We have a craft cluster initiative at NIFT where our design students visit various craft clusters and learn traditional sustainableenvironmentallypracticesfrom master craftspeople. This helps them to incorporate sustainable practices in their own However,designs.themore organised and industrial aspects of fashion in India are still driven by profits, which often leads to flouting of environmental norms. An equal thrust is needed in all directions to become truly sustainable.
IBT: How receptive are customers to sustainable fashion today? Manisha Kinnu: Sustainable fashion awareness, in the Indian context, is still in its infancy. While a section of urban consumers is waking up to the environmental challenges with which the fashion industry operates, a lack of eco-friendly options limits the penetration of sustainable desiresustainablenotsectionofthesometimesCustomersfashion.arealsoscepticalaboutqualityandauthenticityproducts.Thereisanotherofconsumerswhohavewarmeduptotheideaoffashionyetduetoaforvariety.
IBT: What sustainability efforts are companies currently making in the global fashion value chain?
While the focus is primarily environmentaltowardsissues, it would be a grave mistake if the world does not factor socially responsible behaviour, health and other societal factors while reviewing sustainability.
IBT: How can sustainable fashion be made cheaper? Manisha Kinnu: Sustainable fashion costs have to be assessed through a holistic LCA (Life Cycle Assessment) and scaling it up and reducing
Some are going back to more traditional methods of production and experimenting with natural materials and dyes.
Many fashion brands are minimising their carbon footprint
FOCUS SECTOR 26 | India Business & Trade • Sep, 2022 the per unit cost of production. We, at NIFT, ensure that concepts of sustainability and sustainable fashion are inculcated in all our programmes and graduates go out in the industry with not only awarenessabout the harmful impacts of completeandCommunicationsManagementDesign,inhaveandalternativepracticesunsustainablebutalsopracticessolutions.WespecialisationsvariousareasofTechnology,andtrytocoverthevaluechain.
Manisha Kinnu, Campus Director, NIFT, believes that the concept of sustainable fashion is still in infancy in the Indian context.
Manisha Kinnu: Many prominent fashion brands across the globe are minimising their carbon footprint by working on various parts of the value chain. While some are working towards procuring safer raw materials, others are working on reducing emissions from their production process.There are others who are also working to make the front end more environment-friendly by addressing concerns related to marketing, packaging etc.
IBT: What is sustainable fashion? Manisha Kinnu: Sustainable fashion covers the whole gamut of practices across the complete raw material supply chain, designing & production processes, marketing & distribution, usage, disposal and recycle – colloquially termed as “cradleto-cradle” as well as sustainable livelihoods.
IBT: How has India-Austria trade performed in the past decade compared to its potential? Which industries fuel Austrian exports to India?
IBT: Which are the key sectors where Austrian firms have invested successfully in India,? What is their view of the business climate and development prospects?
Hans-Joerg Hoertnagl: Bilateral trade has had a strong showing recently, with the last year breaking a new record of more than EUR 2 billion of bilateral trade between India and Austria. Austrian exports in railway, hydro energy and smart city solutions have particularly benefited from investments into modern infrastructure in India. Further, companies with the newest manufacturing and testing technologies saw their sales increase significantly.
Hans-Joerg Hoertnagl: Austria is a terrific entry point for Indian companies wanting to set up in Europe, even more so after the United Kingdom left the European Union. Geographic and historical ties allow for ideal access from Austria to all German speaking markets as well as Central and Eastern European countries. Further, the wide availability of highly qualified employees & strong framework conditions make Austria a primary investment destination particularly for R&D intensive companies.
Hans-Joerg Hoertnagl: Both sides find many openings for collaboration, a potential increasingly being highlighted through cross border investments that go both ways. Austrian startups and tech companies can find a huge source of inspiration and know how in India. Indian businesses and customers greatly appreciate the entrepreneurial spirit and the innovative, high-end technologies coming out of Austria.
VIEWPOINT Sep, 2022 • India Business & Trade | 27
Austrian investments have been particularly successful in the railway, smart city and automotive sectors. One of the leading firms is Plasser India. Plasser manufactures the most up-todate high performance and highly sophisticated machines for track maintenance, track laying as well as track renewal for the railways sector. India is one of their strongest markets around the globe and through new production capacities they also export from India to other countries.Generally speaking, once Austrian companies have been able to establish themselves within the Indian market, they have been found to have a very positive outlook on their growth prospects here.
IBT: What are the key factors driving the attractiveness of Austria for Indian investors?
Hans-Joerg Hoertnagl is Commercial Counsellor & Trade Commissioner, Austrian Embassy
IBT: Global trade and economy have reset in the last two years. What are trade policy priorities given the pandemic & supply chain realignments? Hans-Joerg Hoertnagl: As a small, open economy with highly specialized products and services, our companies are naturally very active on global markets. The recent years have not been easy on anyone; however, Austria also see enormous potential moving forward.Thestrength of Austrian businesses lies in technology and sustainability. The huge demand for “green tech” and investments in modern infrastructure is a natural fit for many Austrian companies, as they are market leaders in their fields.
Hans-Joerg Hoertnagl: In India, Austria is a great business gateway for Indian companies
INSPIRATIONCOMPANIESSTARTUPS“AUSTRIANANDTECHCANFINDAHUGESOURCEOF&KNOW-HOWININDIA.”
Hans-Joerg Hoertnagl, Commercial Counsellor & Trade Commissioner, Austrian Embassy, says that highly qualified workers and excellent framework conditions make Austria a top investment location for R&D-intensive enterprises
IBT: India is the world’s third-largest startup ecosystem, while Austria is a prominent startup hub in sectors like IT, media, health sciences, and creative industries. In what ways can the two countries collaborate further in these key areas?
REALISING INDIA’S HOLISTIC PROMISE India is at the cusp of a massive upscaling of its healthcare services exports. IBT analyses the critical action points for stakeholders to capitalize on this unique window of opportunity.
BY VIRAT BAHRI
COVER STORY
HEALTHCARE Sep, 2022 • India Business & Trade | 29
INDIA HAS A NUMBER OF ECONOMICALCOMPLEXARTSTATE-OF-THE-HEALTHCAREFACILITIESWITHCAPABILITYFORSIMPLETOMEDICALPROCEDURESATPRICES.
Alot has been said about how healthcare was ill-equipped to handle the once-in-a-century COVID crisis. But that is precisely the thing about such crises – you don’t face them every day, and have no precedents to even consider a structured response. And when they come, you are pushed into a difficult corner, and compelled to make radical transformation. Time is a huge luxury that’s not on your side. The pandemic exposed critical deficiencies that Indian healthcare needs to address, especially with lack of infrastructure and equipment – beds, medical staff, PPEs, oxygen, diagnostic kits, etc – and healthcare staff. As cases rose exponentially, even hospitals in tier 1 cities struggled to cope, especially in the second wave. But these constraints alone do not define the Indian healthcare sector.
As mentioned, India is a leading destination for medical tourism (Mode 2), due to the presence of highly skilled and professional healthcare personnel, world class doctors and high quality healthcare at economical prices. Foreign tourist arrivals in India stood at 697,000 in 2019 compared to 495,056 in 2017, which indicates growing recognition andThepreference.Government of India has announced the twin initiatives of Heal in India and Heal by India to promote Indian healthcare internationally. The former is focused on medical tourism, wherein the government is looking to ramp up medical infrastructure at 37 hospitals across 12 states, according to reports. It will also include interpreters and special desks at 10 identified airports, a multilingual portal and simplified visa norms for international patients
EXPANSION & DIVERSIFICATION
When you look at India’s impressive rise in medical tourism, one could argue that the glass is actually half full. India has a number of stateof-the-art healthcare facilities with demonstrated capability for simple to complex medical procedures and excellent post-operative care at highly economical prices. Indian doctors and healthcare workers are recognized as being among the best in the world. As per latest estimates, the country has 37 Joint Commission International (JCI) accredited hospitals and 513 hospitals accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH). Apart from this, India has distinct advantages with AYUSH and wellness therapies, which have been gaining recognition over the years. According to the Tourism Ministry, India’s medical tourism was valued at US$ 3 billion in 2015, and grew to US$ 5-6 billion in 2020. Postpandemic, the government is looking to take up a larger share of the medical value tourism pie, estimated at US$ 60-80 billion globally. Wellness is way larger at US$ 639 billion (Global Wellness Institute, 2017). The health and wellness sector has huge potential & scalability to grow its share in India’s services exports. The country is projected to create 1 million health professionals every year, which can be juxtaposed with a projected global shortage of 12.9 million professionals by 2035. This cover story discusses key strategies to help realise this vision.
COVER STORY 30 | India Business & Trade • Sep, 2022 years. The National Digital Health Mission aims to bring healthcare records online to improve efficiency and reduce costs, thereby ensuring better outcomes. Tele-consultations played a major role in reducing hospital visits and ensuring patients continued to get the right guidance even in the middle of lockdowns. Remote consultations can be catalytic in taking healthcare to the last mile, and could also enable a strong revival for India’s medical tourism. Through digital delivery, and their companions. Moreover, it has identified 44 target markets, which are mainly from Africa, Latin America, SAARC and Gulf regions. Under Heal by India, the government is looking to leverage India’s strengths as a source of trained and competent manpower in healthcare (Mode 4).
GROWTH TREND IN INDIA’S HEALTHCARE SECTOR 100150200250300350400500 Source: NITI Aayog; figures in US$ billion 2015 2016 2017 2020F 2022F2014 104 110 160 280 372 81
The Health Ministry is developing an online repository of healthcare professionals, including doctors, nurses and pharmacists, which will also mention which nation they wish to render their services. At the same time, it is developing a repository of hospitals, where NABH accreditation will be necessary to treat patients abroad. These initiatives will go a long way in facilitation and confidence building among foreign patients visiting India, and foreign hospitals seeking professionals. The COVID pandemic has caused a rapid increase in digitization of healthcare, with ‘contactless’ becoming the norm. Wearable tech, telemedicine, VR, robotics, and AI were readily adopted by hospitals, and are expected to transform the healthcare landscape in the coming patients can avoid unnecessary trips and the associated costs. Dr Pralok Gupta, Professor, Centre for WTO Studies and Member, Committee of Advanced Trade Research, TPCI, illustrates with an example, “A kidney transplant procedure is not limited to the surgery and recovery period of 10-15 days. It requires a continuous attention for a prolonged period of time and follow up on aspects like medicines and precautions to be taken. But it may not be possible for the foreign patient to visit India again
HEALTHCARE Sep, 2022 • India Business & Trade | 31 INDIA’S IMPORTS & EXPORTS OF HEALTH-RELATED SERVICES Source: I-Tip (an initiative of WTO & World Bank); Figures in US$ million 1201501809030600 2019 20202018 109.23 144.91 160.27 19.07 31.0832.30 Export Import to overcome current physical constraints, tapping emerging trade opportunities, promoting AYUSH and wellness and boosting quality.
On the other hand, the domestic market of Ayush products, has also increased and is projected at US$ 23.3 billion in 2022 (RIS). With a strong intent to increase their adoption, standardization of Ayush-based health services is already on the rise. Dr D C Katoch, Senior CMO (Ayurveda), CGHS, informs, “India now has over 70 NABH-accredited Ayush hospitals across the 3Ps – practice, practitioner and product with quality control mechanisms and standardization. Even the Bureau of Indian Standards has taken up standardization of materials used in Ayush systems other than drugs.” In fact, they even brought in standards for the mat for performing yoga. Many premier hospitals in the country now have Ayurveda and yoga units. Many Ayurveda hospitals were converted into COVID hospitals in the past 2-3 years. Dr Katoch adds, “Pure Ayurvedic treatment or Ayush treatment was given to mild cases for prevention or during quarantine for moderate cases. And the success rate was excellent.”
During this outbreak, as many as 68 clinical trials related to Ayush drugs, were registered in the Clinical Trial Registry of India (CTRI). Governments are now more cognizant of the gaps in healthcare infrastructure & personnel. So they are relaxing their visa norms for specific categories of paramedics, nurses and doctors. India is evidently best placed with the competence and scale to bridge these critical gaps.
Dr Upasana Arora, Director,
REALISING THE POTENTIAL India is well poised for a giant leap as a global healthcare hub, with its advantages of manpower, scalability, traditional knowledge, quality & personal care and cost. Our discussions with stakeholders revealed recommendations in four prominent areas – incentivising investments for infrastructure enhancement, leveraging technology and again every month.” This is where Mode 1 would be very helpful. The technologies developed by India to enable remote healthcare could also be a sunrise export opportunity targeted at developing nations/LDCs in particular.Anotherfavourable development is the growing importance of AYUSH therapies for boosting overall health and well-being and boosting immunity. Exports of Ayush and herbal products were at US$ 539.57 million during 2020-21, as compared to US$ 425.80 million during 201920, according to Ministry of Ayush.
To quote a pandemic data point, according to the Ministry of Health and Family Welfare, the country had around 1.5 million isolation beds across 15,375 dedicated treatment facilities at the end of the first wave. This is over 1 bed per 1,000 people, and just around 18% of these were oxygen supported. Overall, India has 5.2 beds per 10,000 people. The doctor-to-patient ratio at 0.7 per 1,000 population compares quite unfavourably to the WHO average of 2.5 per 1,000. Government expenditure on healthcare increased from 1.15% in 2013-14 to 1.35% in 2017-18. The global benchmark Yashoda Super Speciality Hospital, affirms, “Other countries are offering Indian hospitals to come, promising free of cost land, to set up and provide healthcare services. At the same time, few countries face shortage of skilled doctors, nurses, etc. They would like Indians to provide treatment to their citizens.”
India Business & Trade • Sep, 2022 is the US, with a share of 16.9%. India’s figure is quite low even in comparison to BRICS members, where public spending in healthcare is between 4-6% of GDP. However, the private sector has been playing a major role since the 1980s, with an estimated expenditure of around 3.6% of GDP. It accounts for around 65% of primary health care services and 85-90% of tertiary care. However, Dr Girdhar Gyani, Director General, AHPI (India) cautions that bulk of investments are coming from overseas, and there is a need to enhance domestic investments. For this, he recommends ease of doing business and single window clearance. Moreover, hospitals need to be provided with soft loans for expansion, and provided essential services like electricity at industrial or domestic rates (currently being charged commercial rates). He also feels that private sector should be incentivized to set up satellite hospitals in, say a radius of around 100 km. Doctors from the main hospital can travel to satellite hospital for emergencies, and handle routine treatments through telemedicine.
The revised health policy focusing on universal health coverage is a paradigm shift. Ayushman Bharat insurance cover and Digital Health Mission are expected to take healthcare to the masses. Central & State Governments are working on increasing MBBS seats, which have doubled to nearly 100,000 seats since 2014. Enhancing the number of post-graduate doctors can also be explored to improve the supply of medical specialists. India can certainly emerge the destination of choice and garner a huge share of the health and wellness tourism market by building on past momentum, but this requires work on brand promotion, enabling infrastructure and end-toend facilitation. For capturing the wellness market, the Kerala model of accredited wellness centres needs to be replicated in other states. Mode 1 is lucrative, but could run into data security hurdles, which are emerging as a significant factor in trade. It will be difficult to get patient data from a country like EU, which is very stringent on data regulations. Moreover, mutual recognition of service providers is a major challenge. Although there is liberalization in Mode 4 movements, it is limited to specific categories. The relaxations being provided need to be analysed and supply mapped accordingly. Moreover, regulators need to be tactically brought on board to ensure mutual recognition. This is also true for AYUSH, as Dr Katoch points out, “During FTA negotiations, whenever we talk about including Ayush products, the first major hurdle is that the equivalent product is not there in that country. Moreover, Ayush products in India are exported in the form of food supplements, dietary supplements, self-health foods or general health products. So they are not recognized there as Marketdrugs.”authorization challenges need to be addressed, therefore, and the same goes for functional integration with AYUSH into mainstream medical care. Dr Katoch adds, “Even today, while more than 70% of PHCs, CHCs and district hospitals in India have Ayush facilities, the practitioners are not working in collaboration with allopathic doctors. This is necessary to provide maximum benefit or optimize health care delivery to people.” Aggregating Ayush and allopathic doctors can help India surpass WHO benchmarks and take health coverage to the last mile. Last but not the least, strict adherence to quality benchmarks is essential. Dr Atul Kochhar, CEO, NABH, affirms that SOPs proved a key differentiating factor for hospitals amid the outbreak, when it came to controlling mortalities of patients and healthcare workers. He surmises, “So that is a very strong case to institute SOPs in every domain of healthcare, whether they go for NABH certificate or not. The basic framework of patient safety revolves around having process centered care not person specific care.” Standardisation is a core foundation on which Heal in India and Heal by India can be achieved.
COVER STORY 32 |
THE NUMBER OF MBBS SEATS HAVE DOUBLED TO NEARLY 100,000 SEATS SINCE 2014. ENHANCING THE NUMBER OF SEATS FOR INCREASEDOCTORSPOST-GRADUATEISALSONECESSARYTOTHESUPPLYOFSPECIALISTS.
Mode 1
IBT: How do you see India’s healthcare services export composition changing? Dr. Pralok Gupta: India has done remarkably good in Mode 2 or medical tourism, except for the pandemic years. It is likely to revive now as the fear of COVID comes down and normalcy get restored. The other one is Mode 4. Some countries have relaxed their norms to allow doctors, nurses, etc. But it’s kind of a nuanced relaxation for certain key
HEALTHCARE Sep, 2022 • India Business & Trade | 33 professionals. We need to analyze what kinds of relaxation is being given and proceed accordingly.
And the third change is Mode 1 or online delivery of services. In the pre-pandemic world, it was not that prominent. But now it has gained traction both in domestic and international contexts.
Mode 1 has an important role to play in revival of Mode 2 as well. For instance, consider somebody is having a kidney transplant in India. It requires continuous attention for a prolonged period of time and follow up on aspects like medicines and precautions. But it may not be possible for the foreign patient to visit India again and again. This is where Mode 1 would be very helpful.
Dr. Pralok Gupta, Associate Professor, Centre for WTO Studies & Member, Committee for Advanced Trade Research, TPCI, talks about India’s prospects for healthcare services exports.
The critical aspects of treatment where doctor-patient physical interaction is important, can be done when the patient is coming to India (Mode 2). But post-operative follow up can be taken care of by online follow-up/telemedicine (Mode 1). But the challenge here is that in some countries, Mode 1 requires certain kind of data flow regulations also, so data protection, sharing and privacy issues come into play. Some countries may have stringent data protection requirements, which India may not be able to follow, like EU, which will make data sharing difficult.
Dr Pralok Gupta: Health service providers are focusing more and more on online delivery and use of telemedicine and digital tools. Also, there is an increasing focus on supply chain issues – building more resilience, developing stocks of critical inputs like oxygen, testing equipment, etc. In such situations, supply chain issues move beyond the domain of healthcare providers and become more public policy issues. The government is actively involved in creating capacities, like developing dedicated plants for oxygen, increasing the supply of certain imports or creating manufacturing avenues for some of the critical inputs. For instance, in India, we are making dedicated efforts to reduce our reliance on APIs. In developed countries, there are shortages of healthcare service providers. So, they are relaxing their norms to attract talent from other countries, at least for key areas and skills. We must note, however, that mobility is a very sensitive issue for developed countries, so they constantly review the relaxation for medical professionals as well.
IBT: Are we able to utilize our commitments in existing FTAs effectively? What should be the approach to future FTAs?
IBT: How do you see the change in global approaches to healthcare infrastructure and capabilities post the pandemic experience?
In healthcare exports, & 2 could see higher synergies
Dr. Pralok Gupta: Generally, there are not very significant or very liberal commitments in health care services across FTAs that India has signed so far. And usually, countries are a bit apprehensive on committing on sensitive sectors like health care. But having said that, in some FTAs, for example, in Singapore, we had very good commitments wrt MRA for nurses, dentists and medical professionals.Asfarasrealization of commitments is concerned, it’s been a mixed success. For dental services, we could not get an MRA still, though there was a timeframe for that in the agreement itself of three years. It was signed in 2005, but now we are in 2022. For nursing services, however, we were successful in getting an MRA, which initially recognised four nursing institutions of India to supply the nurses to Singapore. In a later review, it was increased to seven institutions.Forfuture FTAs, unless there is a dedicated mechanism or good provisions for MRAs, it would be very difficult to increase our healthcare servicesUsually,exports.theconcern is that mutual recognition is in the domain of regulators which are independent, so the government cannot force them to recognize certain qualification. These are the realistic situations which make it difficult to get MRA provisions in the FTAs. But even here, facilitative elements or some kind of pushing the regulators (if not compelling, at least some kind of moral persuasion or pushing), or starting some kind of facilitated dialogue, can help to at least move in the direction of signing an MRA.
The government has started working on broadening the definition of doctors beyond MBBS. If you aggregate Ayush and allopathic doctors, we will surpass the limit provided by WHO. Work on integrating them is going on. Moreover, we need many more specialists or postgraduate doctors. We have asked the government to increase PG seats on a drastic basis and recognize fellowships. If you do not have specialists, no investment will come for tier 2/3 hospitals.
The second policy intervention is to incentivize the private sector for opening up satellite hospitals in the close vicinity of, say 100 km radius.
Apivotal phase for Indian healthcare came in 2017, when the Government came out with a revised health policy and laid the focus on universal health coverage, which has four components –ensuring that health care is available, accessible, affordable & accountable/ acceptable (quality). In 2018, the government launched Ayushman Bharath, under which 50 crore Indians from underprivileged sections are being provided coverage of Rs 5 lakh per annum. To overcome the shortage of infrastructure, the government has brought in National Digital Health Mission in 2019 (now redefined as Ayushman Bharath Digital Health Mission), as technology can put healthcare delivery on the fastFromtrack.2019 onwards, the government has increased MBBS seats on the fast track, from 50,000 seats in 2014 to nearly 100,000 MBBS seats today. The state of UP has announced to establish a medical college in each district. In the private sector, the number of hospitals may not have increased, but number of beds has increased, thanks to liberal regulation during COVID-19.
Doctors from the main hospital can travel to the satellite hospital in emergency, and handle routine treatments through telemedicine. Hospitals are given electricity at commercial rates like for cinema halls and shopping malls. This needs to be brought down to industry or domestic rates. There is also a need for single window clearance. A hospital has to approach over 37 departments for clearances, which takes over a year at times before starting operations. Yet another incentive could be to provide soft loans. International Financial Corporation could be approached to provide loan at 6.57%. With this, the private sector will be able to set up greenfield hospitals in tier 2/3 towns. The central government needs to also make a push to state governments, which can facilitate land acquisition. If these factors are addressed, the private sector is ready to invest in a big way and India could become Global Health Guru in five years.
As per a rough estimate, around 3.6% of GDP was being spent by the private sector till last year. In India, around 65% of primary health care and 85-90% of tertiary care is provided by the private sector. So, it would make more sense to consider healthcare as a unified ecosystem, rather than classify it into public and private healthcare services.
COVER STORY availability of resources. The average spend globally on health care by various governments is around 9.5% of GDP. A country like the US spends 18% of its GDP on health care, compared to 1.3% for India. Luckily, from 1980s onwards, the private sector came up in a big way.
Before the pandemic, we had 1.3 beds per 1,000 population, while the minimum WHO requirement is 3.5 beds per 1,000 population for developing countries. During COVID, all state governments allowed hospitals to increase beds by 30%. Even if we presume that we are at 2 beds per 1000, we have to go up to 3.5 beds, implying potential for investment.However, bulk of the investments in the past five years are coming from overseas. If we make a slight correction in the policies, even Indian investors can come in a big way. In India, we can list around 500 hospitals, which are absolutely and truly world class. If we project these as India Healthcare Hub and not individual entities, we can be a leading nation for medical tourism.
Dr. Girdhar Gyani, Director General, Association of Healthcare Providers (India), proposes an integrated approach to healthcare, and greater incentivisation for private sector investments.
Amidst the trials & tribulations of COVID-19, a level of emergency got created, which left us with a lot of learnings. In terms of availability, we realized that we have a huge shortage of beds, even in Tier-I and Metros. Similarly, we witnessed huge shortage of doctors, equipment, medicines, safety kits, etc. The future now is, obviously to bridge the gaps. The government is coming forward to take support of the private health sector in very open and transparent manner. No government would like to deprive the community from good health and overall wellness. But at the same time, it will depend upon India can be the global ‘healthcare guru’ in five years
Post this dreadful experience, it’s a demand of the times that all hospitals be prepared all the time for any problem. Yet, we also have significant positives to show to the world that India is the best destination for
Around 50-60% people are young, and now we are increasing medical and nursing colleges as well as paramedical trainings. Indian hospitals are capable to cater to more patients than other destinations like Thailand and Bangkok. We have land as well as manpower and skills. I am certain that from 2023, medical tourism will commence once again with full force and we will now get the best results. The government is making a portal, where all big hospitals will be registered, especially NABHaccredited hospitals. Every hospital is supposed to put all their services, as well as their outcomes and number of surgeries done (like joint replacement, heart replacement, etc). It will be a game changer and greatly facilitate foreign patients. Our respected Prime Minister is also very keen that Indian hospitals should go abroad, and establish their setups there, besides delivering services through telemedicine or medical personnel. A lot of Indian nurses and physiotherapists, for instance, are working in different countries. Other countries are offering free of cost land, to set up and provide healthcare services.
At the same time, there are few countries that have big, well-equipped hospitals, but face shortage of skilled doctors, nurses and other staff. So, they would like Indians to come there and provide treatment to their citizens. Our specialist doctors can do few days in a month in some countries, or some hospitals can establish there. So a lot of such initiatives are in progress, and within a few years, India is going to become a vishwa guru in healthcare, because we have all the right ecosystem drivers in place and are also backed by our government’s vision to make India heal for itself and the world.
agolearnings.manyadequateourstrugglingevenofandprovidedsupplierscapability,healthcare.FromzeromanufacturingwearenowthebiggestofPPEkits.Indiahastheseconddosetoallevenaboosterdoseto30%thepopulation.Thisisafeatthatdevelopedcountriesarestilltomatch.Atthesametime,hospitals,thatwerenothavingfacilities,wereabletosavelives.HospitalshavetakentheirToday,forinstanceifyoutoanyhospital,theyhaveinstalledpressureswingadsorption( PSA) plant for oxygen, and lots of extra beds are being added. Our respected Prime Minister is taking so much interest in the sector, and the government is emphasizing on both Heal in India and Heal By India. We are planning to promote India’s medical tourism in a big way with the Sanjeevani programme.
hospitals, the pandemic presented a once-in-a-century scenario, when so many people needed to get admitted at the same time.
HEALTHCARE
@75: Talent, infrastructure, legacy & vision
Afew months ago, I wanted to take a second opinion for an autoimmune disease, for which I am being treated in my own hospital. I visited a special surgery hospital in the US, where I met Dr. Ronaldo McKenzie who was Head of Rheumatology and showed all my reports. His first response was, “You are getting the best treatment, why you are here? The best doctors are Indians.”Indians are basically very hardworking and intelligent. It is a well-accepted fact that the best doctors and engineers in the world are Indians. In fact, everybody knows that US and UK’s healthcare system is run by Indian doctors! In India, medical help is readily available, without very long queues. We probably do not appreciate the worth of this privilege as well as we should. If you are, for instance, going for an MRI in USA, you need an appointment two months in advance. In India, anybody can go and get it done then and there. Moreover, modern Indian hospitals are providing all kinds of treatments under one roof –Allopathic, Homeopathic, Ayurveda, Ayush, Yoga. We are providing world class health care with cutting edge technology with all best doctors and charging very less if you compare with other Moreover,countries.Indiaactually believes in Atithi Devo Bhava, which sets us apart. In our culture, we become very close to our patients also and treat them with love, affection, care. We call them by name, rather than a bed number. These things make India different from other countries. Our healthcare system was indeed challenged during COVID, especially during the second wave when lots of people lost their lives. While India has a good number of Indian healthcare
Dr. Upasana Arora, Director, Yashoda Super Specialty Hospitals asserts that India has proven capabilities to bridge critical gaps in global healthcare.
Dr. Atul Mohan Kochhar, CEO, NABH reminisces how the body coped with the unprecedented challenge of COVID-19, and the lessons learnt on role of technology and standardization.
When the pandemic struck out of the blue, we were struggling to cope with the sudden surge in patients seeking diagnosis and treatment – from the mildest to the most critical cases. We had to quickly change, adapt and adopt.
Another major lesson was that ours is not one country, but 36 countries rolled into one. We are a united federal structure with a big & diverse population in several aspects. That makes healthcare delivery all the more complex, especially in situations like IndiaCOVID-19.hadalready showed the world that it could leapfrog in technology and execution. We witnessed this with the UIDAI or Aadhaar card. And amidst this pandemic, we have seen India seamlessly deliver 200 crores plus dosages seamlessly, ensuring a 100 crore-plus fully vaccinated population. This showed that technology was the only answer to our health infrastructure deficiencies–lack of doctors, beds, critical care, etc. Like every other organization, NABH decided that we have to put all hands on deck, using the already available technology for all our stakeholders. For example, we provide accreditation certificate and empanelment services to about 14,000 hospitals currently and counting. These certifications or accreditation also come with a co-linked incentive provided by IRDA. We deployed available technology – Microsoft Teams, Zoom etc. to continue with patient safety initiatives. We started conducting all assessments online and with well-defined policies. Hospitals also stepped up and cooperated. It was also observed that whichever hospital followed SOPs –whether big or small, whether NABH or JCI, performed better. They could
NABH has given the country national standards or desh ka standard, and these are totally Atma Nirbhar. We must take them to every PHC, CHC and district hospital. Only then can we fulfil the idea of a healthy India, because India is at the forefront of Heal in India, Heal by India. NABH is dedicated to its mission to take quality to the last man in the line, and create a holistic ecosystem of quality in healthcare.
NABH is also very committed to empower our stakeholders through Digital Health initiatives. For this, it has joined hands with National Health Authority (NHA) to accredit and rate the Ayushman Bharat Digital Mission (ABDM) integrated healthcare solutions (public and private) on various parameters. This initiative will help citizens get better and more timely healthcare and help India become one of the leaders in digitization of healthcare in the world. India has already become a leading and attractive destination for medical tourism. As the Government is emphasizing on both Heal in India and Heal by India, NABH has collaborated with Ministry of Health & Family Welfare (MoHFW) for “Heal in India” initiative. This is to promote international medical tourism and cater to more patients for their treatments in India. The government is making a portal, where all big hospitals, especially the NABH Accredited Hospitals and Medical Value Travel Facilitator (MVTF) Empanelled providers will find space and will be registered.
COVID has taught us the importance of herd quality in healthcare
COVER STORY 36 | India Business & Trade • Sep, 2022 limit morbidity of patients as well as staff. Suddenly the very basic tenets of patient safety and quality in health care, such as hand hygiene, surgical safety checklist, mock drills of donning and doffing of PPE, how to wear a mask correctly, became very important. Hospitals already in compliance performed better, even as guidelines were constantly changing. So that is a very strong case to institute SOPs in every domain of healthcare, whether they go for NABH certificate or not. The basic framework of patient safety revolves around having process centered care not person specific care. One more important learning was that we cannot be complacent anymore as new challenges keep coming up. We cannot get away by creating islands of excellence. It is necessary to empower our tier 2/3/4/5 setups. Otherwise, we are as weak as the weakest link in the chain. India needs to create a culture of quality, which I would like to label as herd quality down to every nook and corner of our big and diverse country. Furthermore, we run a very robust AYUSH program. This pandemic showed us that there is no absolute right. Even the most developed countries had some of the worst-case fatality rates. We all have to reinvent and rethink. AYUSH therapies were already there for 5,000 years, and are now looking extremely promising in ensuring holistic healthcare. But now we realize the importance of developing these traditional practices in a very structured way with accreditation, so they are accepted more in Western countries.
During the Covid outbreak, State Government-run Ayurveda hospitals and All India Institute of Ayurveda were converted into COVID hospitals where pure Ayurvedic treatment was imparted for prevention or during quarantine, management of mild to moderate cases and rehabilitation. The success rate was excellent. At the government level now, there are MoUs between Government of India and around 30 countries regarding mutual recognition of traditional systems of medicine, as well as the products and practitioners. However, mutual recognition of traditional healthcare systems still poses a daunting challenge.
HEALTHCARE Sep, 2022 • India Business & Trade | 37 Councils. More than 7 Ayush doctors are available for 10,000 people. Moreover, standardization of Ayush health services has been initiated. Now we have over 70 NABH-accredited Ayush hospitals and Day care centers. The 3Ps –practice, practitioner and products – of Ayush are being promoted with quality control mechanisms, and certification & accreditation systems.
Medical tourism, on the other hand, is one area where Ayush has witnessed more success, led by Kerala. The Kerala Government has adopted a system of accreditation of Ayush centers at tourist places. These centres have been provided various accreditations, which ensure quality benchmarking and imbibe a sense of security for patients. This must be replicated in other parts of the Whethercountry. it is the modern medical system or the Ayush system, more than 75% of the infrastructure is in private sector. So incentivization and public-private partnership is key for ensuring effective and quality services of Ayush to the people. People recognize the importance of Ayush systems now, but functional integration in the healthcare delivery system of our country is required. Our model of integration is quite different from China, where there is a complete amalgamation of traditional and conventional medical facilities. Physical integration of health facilities started through National Health Mission and National AYUSH Mission need to be translated into functional integration as well. Today, while more than 70% of PHCs, CHCs and District hospitals in India have Ayush facilities, the practitioners are not working in collaboration with allopathic doctors. This is necessary to provide maximum benefit or optimize health care delivery to the people. The momentum achieved during the pandemic has to be maintained and we have to take AYUSH systems to the last health unit of the country. Proposal of posting Ayush doctors in sub-centres can enhance the outreach of health services and population coverage.
Interestingly, people around the world often refer to Ayush as alternative systems of medicine. But we must understand candidly that these are rather conventional systems of healthcare, and more so, they are holistic healthcare systems, intending to promote healthy living with established concepts for prevention of diseases, promotion of health and treatment of illness. For the last 7-8 years, government has extended exclusive policy support for Ayush systems to galvanise efforts for public healthcare and improvement of health indices. Challenges pertaining to NonCommunicable Diseases (NCDs), life style disorders, long-term diseases, multi-drug resistant diseases, emergence of new diseases, etc, have led to renewed interest in these systems. Yoga is now well popularized across the world. Over the last 75 years, India has developed huge infrastructure of Ayush and is estimated to have around 750 Ayush colleges, 800,000 institutionally qualified registered. practitioners, 3,500 government hospitals, 26,000 dispensaries, 12 National Institutes and 5 Research
Ayush products in India are manufactured under the provisions of the Drugs and Cosmetics Act. They are medicines here, but exported in the form of food supplements, dietary supplements, self-health foods or general health products. Despite strong demand, market authorization of Ayush remains a challenge.
Functional integration of Ayush & Allopathy is necessary
Dr. D C Katoch, Senior CMO (Ayurveda), CGHS, Ministry of Health & Family Welfare, believes that collaboration between AYUSH & Allopathic practitioners is necessary to optimise healthcare delivery.
AYUSH, which is an acronym for Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homeopathy – is a unique amalgamation of healthcare systems being practiced in India. Ayurveda, the oldest of them, is in existence for more than 5,000 years, dating back to its root references in the Vedas. The first classical compendium of Ayurveda is Charaksahita, written around 3,000 years back. Sowa-Rigpa, a trans-Himalayan traditional medicine system is a recent inclusion into the family of Ayush since 2010. Homeopathy came from Germany to India in 1920, but now it is totally assimilated into the Ayush family.
Date: May 12, 2022 Venue: New Delhi Date: May 11-14, 2022 Venue: Moscow, Russia in the overall interest. I am hopeful that this well attended BSM will help industries from both sides Minister of Commerce, Industry and Investment Promotion, Sultanate of Oman; HE Hamed Saif Al Rawabi, the Ambassador of Oman, and Eng. Redha to engage in productive negotiations to initiate new business relations or even expand existing ones.”
meets Trade Minister of Oman
Juma Al Saleh, Chairman, Oman Chamber of Commerce, on May 12th, 2022 in New Delhi. As of 2021-22, Oman was ranked 31st in India’s top trade partners, with exports from India at US$ 3.1 billion and imports at US$ 6.8 billion. The gathering discussed trade and investment potential in India and Oman’s food sector. The minister also showed a keen interest in frozen, fresh fruits and vegetables. The Oman delegation included leaders in pharma, shrimp and aquaculture, IT, tourism, mining, energy, and food security. The delegates explored innovative trends in India and Oman’s business landscape, as well as new potential in trade, investment, and business partnership.
A delegation led by Trade Promotion Council of India’s Founder Chairman Mohit Singla met His Excellency Qais bin Mohammed al Yousef, TPCIMeetBuyer-SellerIndia-Russiadelegation
HAPPENINGS 38 | India Business & Trade • Sep, 2022 Sept 2022@ TPCItheWhat’slatest TPCI held a facilitativeplaymutualcountriescurrentGauba,inaugural,MayinauguratedCouncilGeneral,AdditionalandEmbassyChiefmeetIndia-Russiamulti-sectorBuyer-Sellerlasting4days.GinaUika,DeputyofMission,IndianinMoscow,VijayKumarGauba,DirectorTradePromotionofIndia,theeventon11.WhileaddressingtheMrVijayKumarsaid,“Intheglobalscenario,needtointensifycooperationandaproactiveandroletoensure continued trade flows
TPCI organised an F&B business delegation to Thailand to promote and open doors for the Indian F&B Industry. It focused on B2B (with importers, TPCI, with support of Department of Commerce, Government of India, organized the India Pavilion at Sydney Build Expo 2022. Sanjay K Muluka, CommercialConsular-&HOC, CGI, & Sandip Das, Deputy Director General, TPCI, inaugurated the pavilion.
F&B Business delegation to Thailand
Sydney Build Expo is Australia’s leading construction show with over 500 exhibitors & acclaimed speakers from the industry. The two-day event provides an important platform with a galaxy of players, including developershousebuilders,architects,contractors,engineers,and
TPCI takes delegation to Sydney Build Expo 2022
Date: May 25, 2022 Venue: ThailandBangkok, Date: June 1, 2022 Venue: Sydney, Australia wholesalers, medium & large scale purchasers, Chamber of Commerce, etc.) & B2G (with Provincial Government & Regulator) engagements. Thailand is one of India’s key F&B trading partners with strong upside potential. It imports US$ 5 billion in food and drinks annually. Top Indian exports include ethnic & snacks, readyto-eat, tea,organicready-to-cook,food&cereals,coffee,chocolates & confectionary, spices, rice, fruits & vegetables, wine & spirits, etc. Currently India accounts for less than 5% of Thailand’s F&B imports in the above categories. The delegation was led by 20 leading Indian exporters of Processed Food & Europe,Indianprominentalsoregion.andimportersengagedCommoditiesAgriculturalwhowith60topfromThailandthelargerASEANTheeventwasattendedbyafewbuyersoffoodproductsfromUSA&Canada.
professionals.construction Around 30 Indian exporters representing Ceramic & Vitrified Tiles participated in this expo.
WHAT’S THE LATEST @TPCI Sep, 2022 • India Business & Trade | 39
fromwholesalersretailers,withexportersopportunityBSMHypermarketSupermarketsSupermarkets,Hypermarket,GrandNesto,frominfacilitatedCHOITHRAMStheon-oneKuwait.Oman,GCCcompanies.IndianfosteronbuildsectorsfocusedTheCOVID-19twointegrationeffortstherepresentedDeputyGeneralMakhijani,TradeTechnicalEmbassy’sAssistantandOfficer.SureshJointDirectorandSandipDas,DirectorGeneralTPCI.Bothsidesrecognisedneedtoaccelerateforeconomicbetweenthecountriespostthepandemic.discussionfurtheronspecificandplatformstogreaterawarenessopportunitiesandtiesbetween&Braziliancountriesviz.UAE,Qatar,Bahrain&Exclusiveone-meetingswithprocurementteamofwerealsofortheexporterstheBSM.LeadingF&BbuyerstheGCClikeLulu,WestZone,Hyper,AlAmriCoscoAlMayaandTalalparticipated.TheIndia-GCCprovidedauniquetoIndiantocollaborateprominentimporters,distributor,&partnerstheGCC.
HAPPENINGS 40 | India Business & Trade • Sep, 2022 Trade Promotion Council of India organized a B2B delegation of food and beverage sector to Dubai, UAE. It was inaugurated by Shri Kalimuthu, Consul (Economic, Trade & TPCI met with Angelo de Queiroz Mauricio, Agricultural Attache’, and Paulo J. Chiarelli V. De Azevedo, Counselor, Embassy of Brazil, to examine bilateral trade India-GCC Buyer-Seller Meet on F&B Sector
TPCI meets ApexBrasil delegation
A 40- exporter Indian delegation participated in the BSM, which saw the presence of over 120 delegates from countries.Tatiana ApexBrasil’sRiera,COO, Ana Claudia Barbosa, and Anirudh Sharma led the delegation. They were joined by the Brazilian
Date: July 12, 2022 Venue: New Delhi Date: July 18-19, 2022 Venue: Dubai, UAE Commerce, CGI Dubai); Mohit Singla, Founder Chairman, TPCI; Amit Sawhney, MD, Nippon Global SL, Spain & official Key Sponsor of the GCC BSM; and Abhishek potential between India and Brazil. They also discussed ways of collaboration between TPCI and ApexBrasil to facilitate business relations between both Poddar, Vice Chairperson, TPCI F&B Committee.
WHAT’S THE LATEST @TPCI Sep, 2022 • India Business & Trade | 41 Pharma business delegation to Russia
The BSM in Melbourne
A Buyer-Seller Meet (BSM) was organized at Leningradskaya, Moscow on July 20, 2022. It was inaugurated by Mr Adil Gantsov, Deputy Minister, Ministry of Investment, Industry and Science of Moscow region. The event was attended by over 200 buyers who engaged with the 27-member delegation fromTheIndia.delegation also met Dr. Konstantin Efimov, Director, Regpharma on July 19, 2022 in Moscow and understood the current certifications and product buyersattendedStChiefMr22.atproceduresregistration-relatedinRussia.AnotherBSMwasheldSt.PetersburgonJulyItwasinauguratedbyKaluginValery,DeputyoftheGovernorofPetersburgandwasbyaround100fromRussia. was inaugurated by Mr. Girish Singh Kavia, Consul (Commerce), CGI, Melbourne. Over 85 Buyers attended from Melbourne, Brisbane, Perth and New Zealand. The delegation also had an interaction with AIBC Team at Sydney Start-up Hub in presence of Andrew Robb AO, Former Australian Trade Minister & Jodi Mckay, Former Leader of Opposition NSW.
F&B DelegationB2B to Australia TPCI led a business delegation comprising of prominent fromcompaniespharmaceuticalsIndiantoRussiaJuly18-24,2022 to TPCI took a 30-member B2B delegation of F&B players to Sydney and Melbourne. The delegation comprised leading F&B players from various segments including ethnic foods, spices, ready-toeat products, breakfast cereals, etc. The BSM in Sydney was inaugurated by Manish Gupta, Consul General of India, Sydney. Also present were Sanjay K Muluka, Consul (Trade & Commerce), CGI, Sydney and Con Livissianis, Chair – Agri Business Chapter of Australia India Business Council (AIBC). It was attended by 125+ buyers from New South Wales.
Date: July 18-24, 2022 Venue: Moscow & St Petersburg, Russia Date: July 26-28, 2022 Venue: Sydney & Melbourne, Australia explore opportunities for future trade collaboration and possible tie-ups with Russian firms.
HAPPENINGS 42 | India Business & Trade • Sep, 2022
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TPCI organized a webinar on ‘Steering the EV Revolution in India’ on April 27. It focused on the current EV environment, its growth prospects and strategies. Panelists for this session were: Pranav Singanapalli, Founder & CEO, Emote Electric Nikhil Gupta, Business Head, EVCS and PVI, Delta Electronics India Prof Subhadip Roy, Associate Professor, IIM Ahmedabad Prof Devika Vashisht, Assistant Professor, Marketing Management, IIM Sirmaur S. K. Dube, Project Advisor-TERI and Ex-General Manager, NTPC Limited Parshuram
During the first Committee Meeting, Members shared their perspectives on the emerging trends, opportunities and challenges facing Indian trade, and suggestions for future initiatives by TPCI. Further, as a result of the nomination process, Mr Sumanta Chaudhuri and Mr Atul Kaushik were elected as Chairperson and Vice Chairperson respectively.
Committee for Advanced Trade Research Trade Promotion Council of India has set up a Committee for Advanced Trade Research, which comprises eminent experts and thought leaders across key expertise areas of business and trade.
The first meeting of the Committee was held on July 2, 2022. The advisory committee has been set up to mentor the research and thought leadership initiatives of the Council. It also aims to lead proactive cross-domain deliberations on trade and economic development matters from a current as well as futuristic perspective, delivering critical insights for policy and industry.
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Paka, Founder and CEO, Gravton Motors Steering the EV Revolution inWEBINARSIndiaCHAIRPERSON • Sumanta Chaudhuri, IAS Officer (Retd) & International Trade Expert VICE CHAIRPERSON • Atul Kaushik, Chief of Party US-India Triangular Development Partnership MEMBERS • Prof Arpita Mukherjee, Professor, ICRIER • Dr Badri GopalakrishnanNarayanan , Lead Adviser & Head, Trade & Commerce, NITI Aayog • Harsha Vardhana Singh, Chairman, Ikdhwaj Advisers LLP • Dr K Rangarajan, Professor & Head, Centre for MSME Studies & Head, Kolkata Campus, Indian Institute of Foreign Trade • Prof Pralok Gupta, Associate Professor (Services & Investment), Centre for WTO Studies, Indian Institute of Foreign Trade • Dr Pritam Banerjee, Logistics Specialist and Consultant, Asian Development Bank • Dr Rajendra Prasad Sharma, Professor- Marketing Area, Indian Institute of Foreign Trade COMMITTEE FOR ADVANCED TRADE RESEARCH
• Sasikumar Gendham, MD, ManufacturingSalcomp India Private Ltd.
The panel comprised the following experts:
WHAT’S THE LATEST @TPCI Sep, 2022 • India Business & Trade | 43
TPCI organised a webinar on Healthcare services: A holistic post-COVID roadmap on August 8. It featured an expert panel that discussed experiences and learnings from the pandemic and the strategic roadmap to make India a global healthcare hub.
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Shailendra Singh Rao, Founder, Creduce
• Dr. Atul M. Kochhar, CEO, National Accreditation Board for Hospitals and Healthcare Providers of India
• Dr. Pralok Gupta, Associate Professor, Centre for WTO Studies and Member, Committee for Advanced Trade Research, TPCI.
The discussion highlighted the role of carbon trading in combating climate change, what makes India one of the hottest markets for carbon trade, and the kind of legislation that the country should draft.
• Adv. Vanita Bhargava, Partner, Dispute Resolution, Environment & Tax Litigation, Khaitan & Co and an Advocate on Record in Supreme Court Sandip Keswani, Director, ESG, KPMG India
• Prof AL Ramanathan, School of Environmental Science, JNU
The RBI notes that in order to achieve the indicative services exports target of US$ 1 trillion by 2030, the services export basket needs to be diversified. The healthcare segment is one area that can be explored to this end.
• Ashwini Hingne, Senior Manager, Climate, World Resources Institute India
• Alex Paul Menon IAS, Joint SpecialCommissioner,DevelopmentMEPZEconomicZone
Carbon trade: The ‘climateproof’ export opportunity Healthcare services: A holistic post-COVID roadmap
• Dr. Upasana Arora, Director, Yashoda Super Speciality Hospital
The panel for the webinar consisted of:
• Dr Arpita Mukherjee, Professor, ICRIER & Member, Committee for Advanced Trade Research, TPCI.
• Dr. D C Katoch, Senior CMO (Ayurveda), CGHS, Ministry of Health & Family Welfare
• Dr. Girdhar Gyani, Director General, Association of Healthcare Providers (India)
TPCI organised a webinar on the topic ‘Will DESH Scheme catalyse India’s integration into GVCs?’ on August 10. The panel discussed the provisions in the DESH Scheme draft released by the government to replace the SEZ Act, what the industry can expect, and it’s potential in driving greater investments and generating employment.
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The panellists for the session included:
TPCI led a panel discussion on Carbon trade: The ‘climate-proof’ export opportunity on June 17. Albeit India is one of the fastest growing carbon trading markets in the world, it does not have an effective and transparent legal framework for it.
• Sunil Rallan, Chairman and Managing Director, J Matadee Free Trade Zone Pvt Ltd
• Prof. Krishna Raj, Institute for Social and Economic Change (ISEC)
Will DESH Scheme catalyse India’s integration into GVCs?
Wild tea bushes were found in Assam’s mountains, where the Singphow tribe had been using it medicinally since the 12th century. Yet, the British continued to import seeds, plants, and tea workers from China for commercial tea cultivation in India. After much debate, Assam’s wild green leaves were named tea and classified as Camellia sinensis var assamica. Eventually, the EIC allowed commercial plantations
On the other hand, since the 1960s, the masses have accepted tea as their ‘favourite beverage’ and a staple offering for guests as well. According to the Tea Board, India is the largest tea consuming nation, with over 80% of households reportedly drinking tea. Its pleasing aroma and taste has made it extremely popular. Several tea making methods evolved across regions, especially the popular Masala Chai prepared with the infusion of various spices. From an aristocratic obsession, tea is now a unifier across all classes of society in its myriad avatars.
Equality in a tea cup
From a symbol of social etiquette in aristocratic society, tea is an ubiquitous beverage bridging inequalities in society. in Assam and other fertile areas. Today, Assam is the biggest contigious tea-growing state in India and the world. Tea, is an ‘intoxicating thunderstorm of aroma and freshness’. The aroma and avour of black tea leaves, whether from Assam or Darjeeling or Ceylon, changes from one region to another. It became a popular drink in the UK and other European countries. India, which was increasing its tea production capacity to challenge China’s monopoly, saw tea as a valuable foreign exchange earner. It targeted these countries for export after independence. With population growth, global tea demand rose. Marketing & product innovation over the years have brought many premium versions of this common man’s beverage to cater to the elite audience. Some tea varieties are so expensive that almost 99.9% people worldwide will not be able to taste BY VINOD SINANDI
44 | India Business & Trade • Sep, 2022 these varieties for the rest of their lives. Some of them are – Chinese brand Da-Hong Pao, Chinese Panda Dung Tea, TWG unique metallic flavour Yellow Gold Tea, Silver Tips Imperial Tea, Vintage Narcissus and Teguanyin Tea. Every sip of these especially crafted tea is said to give limitless joy and delight!
Indians were not aware of tea as a beverage until as recently as the 18th century, when the East India Company introduced the tea culture to India. The 2,000-year history of tea, as well as its preparation and drinking styles, are fascinating. T’e or Ch’a is a Chinese herbal medicine made from plant leaves. In its journey from China to Europe via the Dutch and Britons in the 16th century, T’e became recognised as ‘Taste & Energy Admitted’ or ‘Traditional English Ale’ (Tea).
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