Sudden surge in demand for N95 masks as Wuhan coronavirus turns into global contagion.

A virus with no cure has raised panic across the governments of the globe. Some countries are closing borders with China, while others are awaiting approval from the Chinese authority to fly back their possible patients. As the Wuhan coronavirus outbreak continues to spread, officials in China are urging citizens to wear N95 masks in public to stop the spread of the virus -  and cities in China, as well as other parts of Asia, are reportedly running out of face masks.

Why only N95 masks?

Medical experts are yet to conclude the exact process of transmission of novel coronavirus but are recommending it as most airborne pathogen -  germs that can travel in particles or droplets in the air spread inside the body by touching of face or nose. The cheap (single layer) surgical masks which come in green or blue colour aren’t thick enough to prevent viruses. The N95 respirators are made of special antiviral medical textiles are found to be more superiors in the prevention of similar contagions. These come with 6 layers of medical textiles with the branded ones being certified by US-based National Institute for Occupational Safety and Health (NIOSH).

The Centre for Disease Control (CDC), a premier US government institute strongly recommends a self-controlled lockdown of self and family along with minimum intervention with outsiders or neighbours. In case of emergency, CDC recommends proper use of N95 respirators outdoor all the time. These respirators are designed to fit tightly around the nose and mouth, and, when worn correctly, block out at least 95% of small airborne particles, says a CDC guideline.

With the disease quickly spreading from Wuhan to other districts, China is running out of N95 masks. China, despite being the largest manufacturer of Medtech accessories is eyeing Indian suppliers to replenish stocks. Traditionally, India is a major importer of surgical masks but a severe shortage in Chinese markets has reversed the trade chain. There’s panic among Chinese families and demand for N95 masks has surged suddenly. Eyeing this situation, ANI reported that India’s Medtech companies are working around the clock to meet export orders. Due to excessive shortage, Indian exporters have been told to wait for at least 20 days before they ship their consignments by air.

Prevention is better than cure

India’s National Centre for Disease Control has issued a RED level warning regarding Novel coronavirus, novel because such type of virus has never been detected before. The guidelines are:

• All non-essential travel to China to be avoided.
• Observe good personal hygiene.
• Practice frequent handwashing with soap.
• Follow respiratory etiquettes - cover your mouth when coughing or sneezing.
• Avoid close contact with people who are unwell or showing symptoms of illness, such as cough, runny nose etc.
• Avoid contact with live animals and consumption of raw/undercooked meats.
• Avoid travel to farms, live animal markets or where animals are slaughtered.
• Wear an N95 mask if you have respiratory symptoms such as cough or runny nose.
• Report to the nearest Government doctor and inform him about your travel history.

World Health Organisation has declared coronavirus as a global epidemic. Economists expect a cut of 2 to 3% in China’s GDP. This would severely affect and add to an existing global slowdown.

Source - CDC - US Government, PIB - Government of India.

Indian Navy to get 111 utility helicopters at Rs 21,000 crores. DAC approves defence equipments of nearly Rs 46,000 crores.

MH 60 Romeo Naval Utility Helicopters by Sikorsky Lockheed Martin.

The Defence Acquisition Council (DAC), chaired by Raksha Mantri Nirmala Sitharaman, met on 25 Aug 2018 and accorded approval for procurement for the Services amounting to approximately Rs. 46,000 crores.

The Defence Acquisition Council (DAC), in a landmark decision today, approved procurement of 111 Utility Helicopters for the Indian Navy at a cost of over Rs. 21,000 crores.  This is the first project under the MoD’s prestigious Strategic Partnership (SP) Model that aims at providing a significant fillip to the Government’s ‘Make in India’ programme.

SP Model envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner, who will collaborate with foreign OEM, acquire niche technologies and set up production facilities in the Country. The model has a long-term vision of promoting India as a manufacturing hub for defence equipment thus enhancing self-sufficiency and establishing an industrial and R&D ecosystem, capable of meeting the future requirements of the Armed Forces. The contract when finalised, would result in a vibrant and wide-spread Defence industrial eco-system in the Indian Aviation Sector with the Private Industry and MSMEs as major stakeholders.

The RFI has been floated on the same and it has found that the 111 helicopters will have anti-submarine torpedo aversion capabilities. The new helicopters will be in addition to KA 28 and Dhruv helicopters. As per LiveFistDefence, the likely contenders in the Naval Utility Helicopters fight include the Airbus Helicopters AS565 Panther, Bell 429, Lockheed Martin-Sikorsky S-76D and, perhaps the AgustaWestland AW 109.

In the further quest for modernisation of the Armed forces, the DAC also granted approval to a few other proposals amounting to approximately Rs. 24,879.16 crores, which included approval for procurement of 150 numbers of Indigenously Designed and Developed 155 mm Advanced Towed Artillery Gun Systems for the Indian Army at an approximate cost of Rs 3,364.78 crores. These guns have been indigenously designed & developed by DRDO and will be manufactured by production agencies, as nominated by DRDO. They are likely to be the mainstay of Artillery in the near future. A nod to these major schemes will provide a fillip to the ‘Make in India’ push by the Government, will help create self-reliance in the Country in Defence manufacturing sector and has the potential of making the Defence Industry as a major engine of India’s economic growth.

 To enhance the capability of Navy at sea, approval has also been granted for procurement of Anti-Submarine capable, 24 American MH 60 Multi-Role Helicopters, which are an integral part of the frontline warships like the Aircraft Carriers, destroyers, frigates and corvettes. Availability of MRH with the Navy would plug the existing capability gap.

In addition, procurement of 14 Vertically Launched Short Range Missile Systems was also cleared by the DAC. Of these, 10 systems will be indigenously developed. These systems will boost the self-defence capability of ships against Anti-Ship Missiles.

Source - Ministry of Defence, LiveFist Defence.

Shadow Banking's continuous Rise is risk to Global Stability

Skyline of Chongqing city in China

Shadow Banking has become an unstoppable force

A decade later after 2008 Financial Crisis, the global economy is now waiting for a turnaround. The average world GDP has picked up some momentum. Although, economists from independent rating agencies believe that the double-digit growth for developing economies is yet a few years away. As the economy looks to improves, shadow banking funding seems to the next big threat to the global stability. In a simple language, shadow banking is when you have someone that does banking without being a bank.  Someone takes deposits from people and then lends it out. The concept is similar to a Ponzi scheme. Individuals or group of individuals fund corporates without the jurisdiction of the regulator or the government. When loans from registered lending channels like banks turn to NPAs within a few months, can we imagine the risk which shadow banks take?

Growth in global bond, real estate and money market funds continued to swell the world’s shadow banking sector, a watchdog that coordinates financial regulation for the G20 big economies said in its report. The value of the global shadow banking market increased by 7.6% in 2016 to $45.2 trillion, according to the Financial Stability Board (FSB) Global Shadow Banking Monitoring Report 2017.

According to the report, the $45.2 trillion figure represents 13 percent of the total financial system assets of the 29 covered jurisdictions, which represent 80 percent of the world’s GDP. The report now includes Luxembourg for the first time, bringing the total number of jurisdictions to 29.

Shadow Banking is China's magic wand to prosperity. But, what are the risks?

Also for the first time, the FSB report assesses the involvement of non-bank financial entities in China in credit intermediation that may pose financial stability risks from shadow banking. The reason that shadow banking is popular in China is that the regulated state-owned banks pay lousy interest rates and they only loan to large state-owned companies.  If someone can pay better interest rates and make loans to people that can't get loans through the normal banking system, they can make a lot of money. But, funding comes with risks too. A major default could trigger a domino effect panicking local investors which may, in turn, result in a major financial crisis in China.

China and Luxembourg contributed $7 trillion and $3.2 trillion, respectively, to the $45.2 trillion figure. Public lending may not trigger systemic risk in high capita countries like Luxembourg, Cayman Islands, Netherlands etc. Rich individuals can take risks to multiply their wealth by funding newly incorporated companies. The same system cannot be implemented countries in China, India or Thailand where per capita income is low.

With Chinese economy slowing down, Xi Jinping has tightened the regulation on shadow banking individuals and groups. Chinese daily South China Morning Post reported that the companies that had committed to buying overseas assets are now finding it hard to complete the deals amid China’s financial clean-up of its shadow banking activities and banks’ reluctance to extend loans. China, being a $10 trillion dollar economy may not face not any systemic risk. But, a range of defaults by investors abroad may destroy individual investors and medium-sized corporates.

- Chaitanya Kulkarni

Source - Financial Stability Board

India bets big on methanol

Coal Production and Transportation in India

Energy is considered as a key input for the economic development of the country. India is poised to play a significant role in global energy space as it is likely to account for 25% of global energy demand by 2040. India needs around 2900 cr litres of petrol and 9000 cr litres of diesel per year currently, the 6^th highest consumer in the world and will double consumption and become 3^rd largest consumer by 2030. Our import bill on account of crude stands at almost 6 lac crores.

Hydrocarbon Fuels have also adversely affected the environment with Green House Gas Emissions (GHG). India is the third highest energy-related carbon dioxide emitter country in the world. Almost 30%pollution in cities like Delhi is from automobiles and the growing number of automobiles on the road will further worsen the pollution. It must be noted that the recent situation is alarming and time has come for the Govt to present a comprehensive roadmap to reduce the urban pollution in this country and stop pollution-related deaths completely. We need to have our own “Indian Fuel of global relevance”. Biofuels are pollution-free, indigenous, import substitute and cost-effective solution.

Methanol is a clean burning drop in fuel which can replace both petrol & diesel in transportation & LPG, Wood, Kerosene in cooking fuel. It can also replace diesel in Railways, Marine Sector, Gensets, Power Generation and Methanol based reformers could be the ideal compliment to Hybrid and Electric Mobility. Methanol burns efficiently and gives almost no emissions.

Methanol Economy – India’s road ahead

The government with the recommendations from NITI Aayog has given the go-ahead to add 15% Methanol in Petrol. This is a tried and tested used in countries like USA. Imported refined petrol costs about Rs. 80 while locally produced methanol can be acquired at less than Rs 20 for a litre. Industry experts feel that with this move, the cost of blended petrol would be decreased by 10%. With the revenue fall in tax income, the government could effectively increase duties and pass some benefit to the consumers by lowering costs periodically. NITI Aayog report suggests that methanol blended petrol would lower pollution by 33%.

Globally, the installed capacity of methanol is 120 million ton. Currently, Methanol accounts for almost 9% of transport fuel in China. They have converted millions of vehicles running on Methanol. China alone produces 65% of world Methanol and it uses its coal to produce Methanol. Israel, Italy have adopted the Methanol 15% blending program with Petrol and fast moving towards M85 & M100, Japan, Korea have extensive Methanol & DME usage and Australia has adopted GEM fuels (Gasoline, Ethanol & Methanol) and blends almost 56% Methanol.

Methanol and DME will play an important role in order to contain the rising imports and improve the energy security of India. India has an installed Methanol Production capacity of 2 MT per annum. As per the plan prepared by NITI Aayog, using Indian High Ash coal, Stranded gas, and Biomass can produce 20MT of methanol annually by 2025.  India, with 125 Billion Tonnes of proven Coal reserves and 500 million tones of Biomass generated every year & the huge quantities of Stranded & Flared gases have a huge potential for ensuring energy security based on alternate feedstock and fuels.

NITI Aaayog has drawn out a roadmap to substitute 10% of Crude imports by 2030, by Methanol alone. This requires approximately 30MT of Methanol. Methanol & DME are substantially cheaper than Petrol and Diesel and India can look to reduce its fuel bill 30% by 2030.

India’s future – Methanol Economy

With very little modifications to existing engines (vehicles) and fuel distribution infrastructure, 15% of all vehicle fuels can be converted to Methanol & Di-Methyl Ether (DME). India is shortly going to implement Methanol 15 % blending program with Petrol and cost of petrol is expected to come down immediately by 10%. Nitin Gadkari, in his speech in Loksabha said, you will soon see buses and trucks running on 100% methanol. Diesel to state transport costs Rs 45/litre while methanol would only cost Rs 19/litre. This would increase profitability and bring down ticket costs. Global engine manufacturers like Volvo, Caterpillar, Mercedes and in collaboration with Indian players can manufacture these engines under the Make in India.

Worldwide due to emission regulations being implemented stringently by IMO (International Maritime Organisation), marine Sector is shifting to Methanol as the fuel of choice. Being a very efficient in liquid form and practically generating no SOx or NOx, Methanol is much cheaper than LNG and Bunker / Heavy Oil.  Ministry of Shipping is preparing a roadmap to convert 500 barges into Methanol and a cabinet note is being prepared to adopt Methanol in Inland Waterways system. The first barge in India to run on Methanol will be achieved in the next 12 months. Sweden has already about 17 boats, ferries, barges and a 1500 passengers cruise ship running on Methanol. India will convert abt 50 Nos of vessels in the Port sector and various vessels owned by government entities to operate on Methanol.

The cooking fuel program of Methanol liquid fuel and LPG-DME blending is a low hanging fruit for India. A 20% blending program with LPG, without any infrastructure modifications, would result in an immediate savings of Rs.6000 Crores a year.

With high coal reserves, there are currently five companies who have the tech to produce methanol – Gujarat Narmada Valley Fertilizers, Deepak Fertilizers, Rashtriya Chemicals, Assam Petrochemicals and National Fertilizers Ltd.

India by adopting Methanol can have its own indigenous fuel at the cost of approximately Rs 19/litre at least 30% cheaper than any available fuel. Methanol fuel can result in great environmental benefits and can be the answer to the burning urban pollution issue. At least 20% diesel consumption can be reduced in next 5-7 years and will result in a savings of 26000 Crores annually. Rs. 6000 Crores can be annually saved from the reduced bill in LPG in the next 3 years itself. The Methanol blending program with Gasoline will further reduce our fuel bill by at least 5000 Crores annually in next 3 years.

Source- PIB, Loksabha TV, Niti Aayog

Indian electronic manufacturers to get competitive edge from the hike in import duty.

The Government of India’s decision to hike duty on the import of electronic goods would boost #MakeInIndia.

The notification issued by Ministry of Finance announced the raise in custom duties on a host of electronic goods in order to give a push to Make in India initiative. As per the notification, the customs duty on products like Television sets, mobiles, microwaves, refrigerators and many others have been increased.

The customs duty on television set has been increased to 20% from 10%, while the additional duty on assembled LED panels (modules) has also been increased from nil to 7.5%. Similarly, the duty on monitors and projectors has been doubled to 20%, while for the mobile handsets the duty has been raised to 15%. The move has been cherished by electronic manufacturing and Original Equipment Manufacturers (OEMs) who Make in India. This would mean that the electronic product manufactured in India would relatively cost less than its equivalent produced abroad.

Global electronic brands, in a hope to increase revenue, were eyeing India’s booming $100 billion electronics market. The electronics market of India is one of the largest in the world and is anticipated to reach US$ 400 billion in 2022. The market is projected to grow at a compound annual growth rate (CAGR) of 24.4 per cent during 2012-2020. The hike in import duty would encourage global electronics manufacturers to set up plants in India.

#MakeInIndia, for Indians and ship it anywhere in the world – PM Modi

With local sourcing of electronic goods, India could narrow the gap between India’s export and import. As per data published by NITI Aayog, in the period of 2014-15, India imported electronic good worth $36.9 billion while its export was minimal at just $6 billion. In several countries, the contribution of the electronics industry to the GDP is significantly high. For example, the electronic industry contributes 15.5% to GDP in Taiwan, 15.1% in South Korea and 12.7% in China. But in India, this proportion is only 1.7%. As India awakes, the scenario in electronics manufacturing would see a transformational shift.

The notification of increasing import duty gives protection to the brands who manufacture here in India from low-cost OEMs products which are often dumped in price-sensitive Indian market by Chinese brands. With the commitment to Make in India, reputed International electronic brands are keen to set up large Electronic Manufacturing Clusters. iPhone maker Foxconn has agreed to set up a manufacturing plant at India’s largest electronics SEZ at JNPT Coastal Economic Zone near Mumbai.

Local sourcing and manufacturing of electronic products would usher higher profits for MSME as well large-scale manufacturers. The government also expects higher revenues from hiked import duties by the end of the year. Experts who have worked in electronics segment say that hike in import duty would lead to inflationary pricing, however Indian Manufacturers will benefit.

This protectionary measure by the government of India would strengthen Made-In-India brands. The electronics manufacturing industry has a potential to give 10 million jobs per year.

"I would like to congratulate Government on the decision to raise customs duty on some electronic items including television, mobile phone, and water heater. This move will definitely give a boost to Manufacturing in India which will in-turn push Make in India initiative by our Government. It will encourage foreign players to manufacture products in India rather than import them as the prices are expected to go up, especially for televisions. With this move, Indian manufacturers who make products with complete backward integration will benefit immensely. Manufacturers such as Videocon, one of the leading Indian manufacturer with a large workforce will get a boost as they have a very strong manufacturing base in the country. Even smaller manufacturers like Vierra will be benefitted from this step. Overall it is a great step to boost manufacturing in the country and will also lead to job generation. Make in India project by our government is a great project and to make it successful the government has started implementing the right environmental requirement.” said Mr. K.S. Raman, Former President, Consumer Electronics & Appliances Manufacturing Association (CEAMA).

The growing customer base and the increased penetration in the consumer durables segment has provided excellent scope for the growth of the Indian electronics sector. Soon, India will not just be a market for others, but it will reposition itself as the next factory of the world.

- Chaitanya Kulkarni

Coastal Economic Zones will bring port-led prosperity along with high pay jobs.

India wants to shift gears from a service based economy to a manufacturing one. To promote local manufacturing, the government of India rebooted the Make in India scheme. It’s brand ambassadors, the lion and PM Modi were seen worldwide meeting investors and entrepreneurs aiming to improve India’s manufacturing GDP ratio. Processes were simplified and red carpet was laid instead of red tape, pushing India’s Ease Of Doing Business rank by 30 points. No other large country like India has seen such a large jump and with GST, India may soon match with the rank of China.

China’s leap into being ‘the factory of the world’ could be accomplished with its near-coast economic zones. Out of top 10 mega-ports in the world, China has 8 of them and mostly on the east side of the country. Economists say that nearly 75% of China’s GDP growth comes from Eastern cities and economic zones. With economic zones near ports, China could reach out to global markets sooner. Within two decades, China created more than 20 brand new cities with more than 5 million population on China’s east coast. With megacities, came high paying industrial jobs and small medium enterprises.

According to a 2009 Asian Development Bank study, only 10.5% of manufacturing workforce in India was employed in firms larger than 200 workers compared to China’s 51.8% in 2005. At the other extreme, 84% of India’s manufacturing workforce was in firms with less than 50 workers compared to China’s 24.8%. These differences translate into substantially lower average labour productivity and wages in India than China.

Unfortunately, large firms are missing in India in precisely the sectors in which they are needed the most: employment-intensive sectors such as apparel, footwear, electronic and electrical products and host of other light manufactures. These are products in which China has done well thereby generating a large volume of good jobs for its workers. In 2014, the country exported $56 billion worth of footwear compared with $3 billion by India and $782 billion worth of electrical and electronic goods compared with $9 billion by India.

Shenzhen, one of the early coastal economic zones of China is today world’s largest electronic manufacturing hubs. Almost 90% of mobiles which we use today here in India are made in Shenzhen. Oppo, Vivo, OnePlus, Foxconn (Apple & LYF mobile), Samsung have huge manufacturing plants in Shenzhen. The market of mobile parts in so spread that it is almost impossible to make a truly Make In India smartphone. Today, Shenzhen has a population of 11 million and it boasts of gross city product of $265 billion. With an aging population and growing wages, Multinational companies are looking elsewhere in Malaysia, Vietnam or India. Coastal Economic Zones conceptualised under Sagarmala by NITI Aayog and Ministry of Shipping could be India’s greatest turnaround opportunity.

Special Economic Zones nearby Gujarat and Mumbai account to 60% of India’s export. With an aim to provide impetus to Make in India, 14 Coastal Economic Zones are conceptualised under the National Perspective Plan of Sagarmala. The CEZs have been conceptualized as a spatial-economic region which could extend along 300-500 km of coastline and around 200-300 km inland from the coastline. Each CEZ will be an agglomeration of coastal districts within a State.

Leveraging the port eco-system these CEZs will provide the geographical boundary within which port led industrialization will be developed. The CEZs have been envisaged to tap synergies with the planned industrial corridors like Vizag Chennai Industrial Corridor and Delhi Mumbai Industrial Corridor. There is immense scope for logistic cost reduction under Sagarmala and CEZ is an effort to reduce cost by locating the manufacturing centres closer to the ports thereby making Indian trade competitive in the global market.

India’s first coastal economic zone will come up near JNPT Port in Navi Mumbai, a satellite town of a mega-city Mumbai. JNPT CEZ has added the advantage of having two major ports (JNPT Port and Dighi Port) in its vicinity, where JNPT Port could be exclusively used for export the product due to its depth and Dighi Port could be used for the local supply of goods. Another added advantage would be upcoming Navi Mumbai International Airport and Mumbai Transharbour Sea Link. As per the plan, JNPT CEZ will focus on electronic, telecom, automobile and IT goods manufacturing.

As reported in Economic Times, about 45 companies across telecom, auto and IT sectors will soon bid for 200 hectares of land to set up manufacturing units in the zone. JNPT CEZ will provide 1.5 lakh jobs to people staying in Mumbai Metropolitan Region and affected villagers. iPhone maker Foxconn is looking to invest in 13-acre land in JNPT CEZ. Major automobile giants are in talks with the ministry to set up a plant. The entire land distribution will be done under e-tendering process. It’s proximity to Mumbai could also mean realty bonanza on outskirts on JNPT CEZ.

- Chaitanya Kulkarni (twitter.com/chai2kul)

China launches world’s first hydrogen-powered tram in Hebei province.

In the last few decades, China has become a global leader in innovative mass transportations systems. Not just they are known for 20,000km of bullet trains, it’s small cities are developing innovative models for themselves and the world. Changchun city was the first to develop a tram or light rail system. Today, China has more than 15 Trams and light rails systems in the world.

The world’s first hydrogen-powered tram began its commercial operations in Tangshan, one of China's oldest industrial cities not far from the capital, the state-run Xinhua news agency reported. It was developed by the China Railway Rolling Stock Corporation (CRRC) Tangshan Co. Ltd in 2015. This is Made-In-China product is powered by hydrogen fuel cells, which is a superior eco-friendly measure.

With water being its only emission, the tram emits no pollutants. No nitrogen oxides will be produced as the temperature of the reaction inside hydrogen fuel cells is controlled under 100 degrees Celsius. The distance between carriage floor of the tram and the rail is only 35 cm thanks to the latest low-floor technology, which can remove station platforms and thus make boarding easy for passengers.

This modern tram has three carriages with 66 seats and can run for 40 kilometers at a maximum speed of 70 kilometers per hour consuming 12 kilograms of hydrogen. It can be refueled in just 15 minutes. The four-station line includes a 100kg-capacity hydrogen refilling station.

The launch of hydrogen-powered tram marks a huge step and commitment towards eco-friendly public transportation. The city of Foshan in Guangzhou province have also decided to deploy 8 hydrogen fuel cell powered trams.

Trams are a highly successful and cheap mode of transport across the globe, especially in developed European countries. In comparison, India has currently only 1 tramway operational in Kolkata (operational since 1873). As India urbanises rapidly, at least 100 small cities will require light rail systems in next few decades.

- Chaitanya Kulkarni

Source – China Daily, Global Times.

Welcome FY 2017-18. What it means for you and India

FY 2016-17 was a unique year for Indian financial systems. Breaking the age-old tradition of presenting budget on the last day of February. Finance Minister Arun Jaitley, for the first time in the history of India presented the combined rail and general budget on the first day of February. In the era of uncertainty, India stood as a shining star with the tag of ‘Fastest Growing Economy on the planet’. Industry players were sceptical about India’s growth story after the controversial move of demonetisation. The sudden banning of big notes costed India a dip of 0.6% in its GDP but a large section of people supported the move as some referring it to a ‘Surgical Strike on Black Money’. For the very first time, millions of Indians got the chance to use digital payments platforms. PayTM and the government promoted BHIM is now on the ‘Never to delete’ list in our smartphones. Will FY2017-18 be the beginning of the ‘Achhe Din’? Let’s analyse.

India’s role in the Global Economy

The world economic growth for 2016 at 3.1% was the lowest since the 2008 Financial Crisis. The never ending Middle East war, China’s slowdown, low oil prices, Brexit impacted with major cuts in growth estimates. The situation looks slightly better for upcoming year.

India has become the sixth largest manufacturing nation in the world, rising from the previous ninth position. Recognising the strength of strong economic fundamentals and consumer demand, the impact of demonetisation will gradually fade away. The World Bank expects India’s economy to grow at 7.6% in FY2017-18. Here are the key takeaways from Central Statistic Organisation outlook for FY2017-18.

Retail Inflation - 4% to 4.5% | Fiscal Deficit – 3.2% of India’s GDP | INR - ₹64 to ₹66

Among emerging economies, if there is any growth, that is in India. India is among the few bright spots in the global economy – Christine Lagarde, Chief, IMF

Goods and Service Tax

GST is the most anticipated single indirect tax for the entire country, which aims to make India one unified common market. Important bills related to Central GST, State GST, Inter-state GST and UT-GST are currently under consideration in Rajya Sabha. The four tier GST structure of 5%, 12%, 18%, and 28% is likely to be implemented by July 1, 2017. The bill is hailed by industry experts as it likely to lead to ease of doing business, competitiveness and spurring growth. CBEC GST Mitra helpdesk is well equipped to deal with queries related to GST.

The JAM troika

Jan dhan, Aadhaar and Mobile. These three words changed the way we pay. To ensure last mile reach, government encouraged people all from the sections of the society to open a bank account and use RuPay debit card.  With 40 crore Aadhaar linked accounts, more attention was given to ‘the way we pay’. The game changer move of payments bank was quickly adopted by India Post, PayTM, NSDL and others. India Post Payment Banks has plans to create 1.55 lakh access points in 650 districts across the postal networks through-out India. Payments Bank operating in rural India have herculean task to ensure that Rural Bharat and Urban India is on the same page when it comes to digital payments.

Aadhaar enabled fingerprint payments are more sophisticated than Apple Pay and Samsung Pay as it rules out the need of internet. Fintech experts are cautious about the security concerns in Aadhaar Pay but ‘When there is will, there is a way’.

Digital India – Internet for everyone.

Last year, Kerala became the first state in India to declare internet as basic necessity. Internet is key for last mile delivery of government services in future. Bharat Net, a massive fibre optic cable laying initiative in all village panchayat across India will complete 2 lakh kilometres by the end of FY2017-18. Nearly 500 railway stations in India will enjoy high speed internet services.

The launch of SWAYAM online platform with over 1500 courses and its tie up with DTH channels is a welcome move to take quality education to the masses. The launch along-side Bharat Net will enable students across India to learn new skills and yield institute approved certificates. The IITs and IIMs of this country will now go online, certainly a great initiative for avid learners of India.

Basic healthcare information on a smart Aadhar Card will be the first step as unique health identifier for the country. This will be critical in identifying beneficiaries for social healthcare insurance programs. E-health through Aadhar would substantially save patient’s time during emergencies.

The way we travel

A great start to a great year. Gurgaon Rapid Metro has commenced operations for its 6.6 km phase II. Kochi Metro (25.1 km), Delhi Metro Magenta Line (38 km) and Lucknow Metro (8.4 km) will commence operations in FY2017-18. Construction of all 9 additional lines ie. Line 2 to Line 10 (approx. 160 km) of Mumbai Metro project will begin after monsoons. The metro rail policy will be introduced with the focus on innovative models of implementation, financing, standardisation and indigenization of metro related hardware and software.

India’s semi-speed initiative, the Tejas express is likely to run between Mumbai – Goa, Mumbai – Surat and Delhi – Amritsar in FY2017-18. Indian Railways plan to redevelop 400 railway stations before 2025. Bids for more than 25 stations will be placed by the end of the year. Indian Railways may become the first railway in the world to run solar enabled trains.

Mumbai becomes the first city in India to implement electric buses on a large scale. BEST will run 25 electric hybrid buses made by Tata Motors on BKC route. 2017 will be the founding year for green mobility in India. Governments plans to implement green mobility projects worth Rs. 70,000 crores in upcoming years. This includes 2,000 kms of Bus Rapid Transport Corridors, hybrid buses, cycle & walk tracks, public cycle sharing schemes and intelligent transport solutions.

In bid to revive regional connectivity via air, Ude Desh ka Aam Nagarik (UDAN) scheme will connect to more than 75 small cities under Rs. 2,500. In Phase 1, 43 airports and 5 carriers were selected. It is the largest ever attempt for regional connectivity in the world. The move may attract airline manufacturers to set up plants in India.

Cheers for New India

The world’s fastest growing economy is changing rapidly with the innovative use of technology. The urge to do better and transform the lives of masses fuels the energy for new India. Emerging economies like India are a support system for global economy in the times of slowdown. Cheers for cleaner, greener and better India.

- Chaitanya Kulkarni

Under The Dome - China's Pollution problem

China is talking about its pollution problem, but its equally serious class problem remains obscured behind the haze. Smog leapt to the forefront of Chinese national discourse after the Feb. 28 release of Under the Dome, a 103-minute long documentary quickly hailed as China’s version of the Inconvenient Truth. In the film, which immediately went viral on social media and garnered 150 million online views within days before being censored, investigative reporter Chai Jing explained the root causes of air pollution that has ravaged so much of China in the past few years. But there’s a sharp class angle to the pollution question that Chai’s documentary did not engage. While smog is the most visible problem afflicting middle class in mega-cities like Beijing and Shanghai, China’s other half - the rural and poor population - often suffer a nasty pollution paradox: they face health risks from their air and water, but also depend on polluting industries for their livelihoods.

Link - https://www.youtube.com/watch?v=T6X2uwlQGQM

Under the Dome alluded to the problems like Air, Soil, Water, Chemical pollution when it included a short clip of Chai’s 2004 interview with the local environmental protection agency (EPA) director in Shanxi province, who told her that at the time, 88.4 percent of rivers in the province were polluted and 62 percent were no longer useable. In 2014, according to a survey by the national EPA, 60 percent of China’s groundwater was considered "bad" or "very bad." Villagers who still rely on wells may find their water sources completely contaminated by nearby factories, but have little redress.



Concerns about urban smog have accelerated the relocation of heavy polluters to rural areas, where the local population may be less empowered to resist. For example, in 2005, Shougang, one of China largest state-owned steel manufacturers, moved its main production facility near the center of Beijing to a small town on Bohai Bay, 150 miles from the capital, in response to worries about about air pollution ahead of the 2008 Beijing Olymics. In 2014, large cities like Harbin and Hangzhou shifted factories out of their city centers to alleviate public concerns about smog. In a 2011 report, China’s national EPA highlighted the transfer of heavy pollution from urban centers to rural areas, and admitted that there was insufficient monitoring of pollution in rural areas. The central government announced in November 2014 it plans to deliver safe drinking water to 298 million rural residents in 2015, but experts believe that target might be impossible to meet.

Chai Jing is a Chinese journalist who is famous for documentaries like Insight, Under The Dome.

At one point in Under the Dome, Chai showed a map of northern China, with smog from coal-burning industrial plants in Hebei province drifting easily to Beijing. "The air has no walls," Chai appealed to the audience. "We are all breathing the same air, suffering the same fate." That’s not entirely true. The experiences of workers of a steel plant in Hebei steel are decidedly different from those of white collar office workers in the capital. Chai’s film began a valuable national conversation about air pollution - its dangers, its causes, and its possible solutions. But it left the crucial issue of class almost untouched.

The future is in our hands.

Thanks for reading.

- Chaitanya Kulkarni