EY projects India to become a US$26 trillion economy by 2047 with a six-fold increase in per capita income to US$15,000

Source:  EY.com, 18 January 2023

EY forecasts India to be the fastest growing large economy witnessing a six-fold increase in its per capita GDP that would cross US$15,000 by 2047
The report identifies eight key areas that will accelerate India’s growth over the next decade
Amid the ongoing megatrends, India would have a significant advantage owing to its strong domestic demand, digitalization, largest talent pool globally, financial inclusion, global competitiveness, and sustainability transition
Macroeconomic stability, ease of doing business, power sector reforms and greater energy independence are key to economic resilience

18 January 2023: EY, the leading professional services organization, today announced its growth projection for India that estimates Indian economy will reach GDP size of US$26 trillion (in market exchange terms) by 2047, the 100th year of the country’s independence. The per capita income is expected to increase to US$15,000, putting the country among the ranks of developed economies. The report, India@100: Realizing the potential of a US$26 trillion economy, was launched by Sri Ashwini Vaishnaw, Railway and IT Minister, Government of India on the sidelines of the World Economic Forum at Davos, Switzerland.

The report underscores the growth trajectory of the Indian economy that is projected to be the highest for any large economy over the coming decades. It also cites key enablers that will underpin the country’s development over the next 25 years that will unleash business opportunities across sectors and will significantly enhance India’s global competitiveness. It recommends ensuring macro-economic stability and resilience and continued thrust on reforms, which will be especially relevant in the backdrop of on-going geo-political conflicts, inflationary pressures and slowing global growth.

Launching the report, Sri Ashwini Vaishnaw, Minister of Railways, Communications and Electronics & Information Technology in Government of India, said, “In line with Prime Minister Narendra Modi’s vision, India has commenced its journey into ‘Amrit Kaal’, a uniquely auspicious period, representing India’s opportunity to herald a new world era. There is an unparalleled impetus on developing world-class infrastructure supported by growth and investment-oriented policies and reforms to establish India as a manufacturing and technology hub. Over the next decade, India will not only be the fastest growing economy but will also play an integral role in leading the world into a sustainable future.”

Carmine Di Sibio, Global Chairman and CEO, EY said “As this study shows, India offers a unique investment opportunity as the world struggles with heightened consumer demands and increased geo-political pressures. With the biggest talent pool, an accelerated pace of economic reforms, breakthroughs in energy transition, and rapid digital transformation, the long-term growth trajectory is clearly positive. India demonstrates immense potential and is positioned to make a truly transformative impact on the world stage.”

Rajiv Memani, Chairman and Managing Partner, EY India said “The entrepreneurial spirit of the private sector and policy measures of the last few years in the domains of fiscal, digital, physical infrastructure and social inclusion has uniquely positioned India for higher and sustainable growth. India is already among the fastest growing economies globally and is now at an inflection point where a new era of growth drivers will emerge. The next 25 years – the ‘Amrit Kaal’ – must bring an equal and strong focus on providing inclusive opportunities to all sections of the population, including women and those economically and socially disadvantaged.”

EY projections

Using International Monetary Fund’s (IMF) medium-term projections and Organization for Economic Co-operation & Development (OECD)’s long-term forecasts, EY has made projections under alternative assumptions covering the period FY2023 to FY2061. For the period FY2023 to FY2028, IMF’s projections pertaining to India’s real and nominal GDP growth as well as its nominal savings rate have been used. With India’s real GDP growth forecasted to average 6.5% during this five-year period, it is expected to be moderately affected by global economic events as compared to the rest of the world. The long-term projections beyond FY2028 are based on the OECD’s methodology with suitable modifications made with respect to India’s growth profile.

Under the most preferred scenario, India is likely to cross the critical thresholds of US$5 trillion, US$10 trillion and US$20 trillion in market exchange rate terms in FY2028, FY2036 and FY2045, respectively.

Growth enablers

EY has recognized eight key enablers of growth that will impact sectors across the economy and play a critical role in propelling the growth engine, as summarized below.

World’s Information Technology and Services Hub: With strong services exports at US$254.5b in 2021-22, India enjoys a strong foothold especially in the IT and BPO services exports. There is now an opportunity for the country to seize a higher share of transformational and more complex, expertise-based services to grow faster in the IT services sector. In non-IT services segment, India has an opportunity to fill in the talent gap as developed economies face a shortage of skilled talent due to demographic changes. This would be in areas such as education and healthcare, where services are increasingly being delivered over digital channels. India has the potential to become a services and technology talent hub for the world.

Digitalization: A Force Multiplier: The furious pace of digitalization in the country, including by the government, would result in multiple benefits of improving governance, financial inclusion and providing a framework for private players to reach new markets and create new products and services. The India Stack pioneered in the country is now the global benchmark for most countries. Following a spate of digitalization in the government and private sectors, the digital economy has grown by 15.6% over the period 2014 to 2019, 2.4 times faster than the growth of the Indian economy. Platforms like Open Credit Enablement Network (OCEN) and Open Network for Digital Commerce (ONDC) will democratize credit at scale and e-commerce market respectively.

Filing the credit gap to fuel growth: India’s private debt to GDP ratio remains one of the lowest among large economies, providing a headroom to drive 200 – 300 bps incremental annual GDP growth for the next 20-30 years to reach the current global average private debt to GDP levels. With accelerated credit growth and development of the corporate bond market and digital lending, an optimal financial architecture can help address the critical demand and supply gap in credit to individuals and Micro Small and Medium Enterprises (“MSMEs”), reduce cost of capital, and increase the share of private debt to sustain high growth.

Thriving entrepreneurship spurred by private capital: Start-ups have grown remarkably over the last six years, with India emerging as the third largest ecosystem for start-ups globally. PE/VC investments in India have touched record levels, reaching US$82b in FY21-22. The spurt of new-age companies across technology and other sectors on the back of rapid digitalization, large domestic market and strong capital availability will be instrumental in delivering relatively high and sustained growth to the Indian economy.

Reaping the demographic dividend: 25% of the incremental global workforce over the next decade will come from India. India also has the largest pool of English-speaking STEM graduates with an annual addition of 2.14 million (47% women) and 6.2 million healthcare professionals which includes doctors and nursing staff. This large young and working population will not only reinforce India’s competitive advantage in the services sector but also drive manufacturing and unleash a massive boom in domestic consumption patterns.

Making domestic manufacturing competitive: As global supply chains continue to diversify post pandemic, the government’s ‘Aatmanirbhar Bharat’ (self-reliant India) initiative in manufacturing has found further impetus through path-breaking policies such as the Production-Linked Incentives (PLI). Going forward, the country has the opportunity to move up the value chain through complex, high value product manufacturing and in emerging “sunrise” sectors of semiconductors, mobile phones and EVs, positioning India as a nucleus of manufacturing for the domestic and global markets.

Building the infrastructure of the future: In addition to massive upgrades in roadways, investments in physical infrastructure are being supplemented by IT-based ease-of-doing-business initiatives under the National Logistics Policy, with an aim to increase efficiency and lower the cost of movement. Impetus on modernizing railways and Dedicated freight corridors (DFCs) could considerably transform the movement of goods and exports, thereby lowering India’s high logistics costs, making cargo delivery more effective, economical, and reliable.

Transition to sustainable energy: The government has set a target to be net zero by 2070 and reduce carbon intensity by 45% by 2030 vis-à-vis 2005 levels. Renewable energy and development of green hydrogen can help India in its endeavour to achieve energy independence by reduced hydrocarbons import. The GoI has announced several progressive policies toward adoption of green hydrogen, with a goal to meet 10% of global hydrogen demand by 2030. The policy changes have spurred investments by both the private sector and state-owned enterprises providing optimism that round the clock emission-free energy may become a reality. The renewable energy capacity has increased from 40 GW in 2014 to 166 GW by 2022. As India scales up further, opportunities across generation capacity, equipment manufacturing, storage and transportation services and other allied areas are emerging for private enterprises to capture quickly and decisively.

Policy recommendations

As India marches forward into its Amrit Kaal (an auspicious period most conducive to achieving the country’s potential) and seizes the emerging opportunities across the above enablers, it will be critical to plan for factors that can impede progress. While the GoI has been strategic in its macro-fiscal response during the pandemic and the geo-political conflict, continued prudent macro-economic management focused on managing and stabilizing inflation and currency, ensuring predictability in policies and proactively de-risking the economy would remain important for India to continually attract domestic and global investors.

Simultaneously, enhancing ease of doing business, accelerating power sector reforms and energy independence, and enabling quality healthcare and education will not only increase business confidence but also ensure socio-economic development on a sustained basis.

LG invests Rs 200 crore to start premium refrigerator production in India

Source: Economic Times, 18 January 2023

India’s largest home appliance maker LG Electronics India has invested Rs 200 crore to manufacture premium side-by-side refrigerators in the country in line with the make in India initiative.

The new line was inaugurated at LG’s Pune plant on Tuesday. It will also make double-door and single-door refrigerators. The unit will have production capacity of over two lakh units.

Hong Ju Jeon, managing director of LG Electronics India said, localization has been a key differentiator as we have continuously developed products based on Indian insights. “Last year we started manufacturing window inverter AC in India at our Noida manufacturing facility, this year we are starting side by side refrigerator production,” he said.

The new investment will help LG to expand its product line up in India and the company will launch 15 new side-by-side refrigerators this summer season. These products are typically priced above Rs one lakh.

LG India vice president Deepak Bansal said LG is already the market leader in side-by-side refrigerators with around 53% share and the new investment will help to further consolidate this. “We would also look at exports of side-by-side refrigerators from India,” he said.

Located at Ranjangaon near Pune, the LG facility is spread over 52.8 acre. The plant also manufactures televisions, washing machines, air-conditioners and monitors.

Govt plan to repower old wind power plants could attract Rs 40,000 crore investments

Source: Financial Express, 13 January 2023

The Ministry of New and Renewable Energy’s (MNRE) new draft policy for repowering old wind power plants will increase wind power generation in the country and this will kickstart investments worth Rs 40,000 crore over 3-5 years, said a CRISIL report. It said that the investment will rise by three times the average annual wind power capex seen in the past four fiscal years.

The ministry recently issued the revised draft of the National Repowering Policy for Wind Power Projects, 2022, as most of the old wind power projects with sub megawatt scale wind turbines are yet to be repowered. “This may lead to replacement of ~5 GW of old windmills with new wind power plants with 2x more generation ability,” said Ankit Hakhu, Director, CRISIL Ratings. “Their viability looks good because such projects can generate double-digit returns at tariffs of ~Rs 4 per unit for the incremental capacity,” he added.

Government started driving the wind power capacity additions in India over two decades ago with supportive policies of accelerated depreciation and feed-in tariff, and availability of sites with high generation potential. Total installed capacity almost tripled from ~13 gigawatt (GW) in 2010 to ~34 GW till March 2018, the report said, maintaining that these generated less per unit of capex compared with the newer technologies. These windmills operated at hub heights of 100 metres. However after 2018, wind capacity additions slowed to ~42 GW as of December 2022.

New windmills, now, can operate at hub heights over 150 metres and generate more electricity per unit of machine capex using turbines of over 3 MW capacity. This, the report said, can leverage high-generation-potential sites that currently have the older generation turbines. “The policy provides clarity on extending eligibility of older machines from 1 GW to 2 GW to be repowered, on sale of incremental generation under open access route to C&I customers, and aggregation of projects (helping pool contiguous land parcels/ projects),” said Varun Marwaha, Associate Director, CRISIL Ratings.

Further, capital expenditure per MW will be higher for repowering because developers investing in old wind sites would pay a premium and also incur dismantling expenses of Rs 80 lakh to Rs 1 crore per MW. While generation will increase by 200- 300 per cent, the projects may still need higher tariffs (~Rs 4 per unit) than the recently discovered bids of ~Rs 3 per unit to generate double-digit returns, the report added.

Massive oil sector investment coming to India; Chevron, Exxon, Total, others keen to invest this much money

Source: Financial Express, 13 January 2023

India will likely see an investment of USD 58 billion in finding and producing oil and gas resources in 2023, Oil Minister Hardeep Singh Puri said on Friday, adding global energy majors Chevron Corp, ExxonMobil and TotalEnergies are keen to invest.

India, the world’s third biggest oil-consuming and importing nation, is looking to raise domestic output to help cut down reliance on costly imports. India imports 85 per cent of its crude oil, which is converted into petrol and diesel, and roughly half of its natural gas that is converted to CNG and used in industries.

Speaking at the Voice of Global South Summit, Puri said the government has targeting to increase the geographical area under exploration and production to 0.5 million square kilometres or 15 per cent by 2025 from the current 0.25 million sq km.

“We are expecting an investment of around USD 58 bn in exploration and production (of oil and gas) by 2023,” he said. “Several multinational corporations like Chevron, ExxonMobil, TotalEnergies are showing keen interest to invest in Indian E&P sector.” India, he said, is ready to “explore opportunities for joint development and production of oil and gas assets for mutual benefit and also invite investment in our domestic E&P sector”.

Textile industry welcomes revised rates under RoDTEP scheme

Source: Financial Express, 13 January 2023

Ease of Doing Business for MSMEs: The textile and clothing industry has welcomed the recent revised rates notified by the Ministry of Commerce under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme for 65 HS codes in the textile and apparel sector, as per a report by The Hindu.

The implementation of the committee report would increase export of items such as yarn and fabric of polyester and viscose, denim fabric, knitted fabric of cotton, etc, stated T.Rajkumar, chairman of Confederation of Indian Textile Industry, in a statement.

RoDTEP is one of the most significant schemes for export promotion that was introduced with the objective to refund duties, taxes, and levies borne on the exported product at the central, state, and local level. It includes prior-stage cumulative indirect taxes on goods and services, he said.

The rates for several products including denim, polyester staple fibre spun yarn have been increased, said Ravi Sam, Chairman of Confederation of Indian Textile Industry in the press release. Further, the rate and value cap for viscose rayon spun yarn has increased to 2.5 per cent from 0.9 per cent with a value cap of Rs 6 per kg.

RoDTEP for woven fabrics of artificial staple fibre has also increased from 1.2 per cent to 2.5 per cent, said Sam.

Hailing the increased RoDTEP rates, he said that the enhanced rates would push exports. The development is in accordance with the Production Linked Incentive Scheme announced by the government aimed at enhancing the global competitiveness of Indian textiles and clothing products, he added.

Also Read: Jewellery promotion council GJEPC asks govt to introduce a jewellery repair policy to make India a global outsourcing service centre

Meanwhile, for export promotion, the Union Cabinet on Wednesday approved setting up and promoting a national-level multistate cooperative export society under the Multi State Cooperative Societies (MSCS) Act, 2002. The approval is “for undertaking exports of all goods and services produced by cooperatives and related entities,” a statement noted.

Citing the reason for setting up the cooperative export society, the cabinet said that the proposed society will provide “thrust to exports from the cooperative sector by acting as an umbrella organisation for carrying out and promoting exports. This will help unlock the export potential of Indian cooperatives in global markets.”

Creating a manufacturing future for India

Source: Financial Express, 15 January 2023

By Jairam Varadaraj

Manufacturing is being strategized as a growth engine for the country. The opportunities are immense. To create a long-term and sustainable manufacturing platform for the nation, we need to go beyond being a low-cost source for products. In the short term, low-cost should be combined with high-quality to gain credible traction in global markets. Providing low-cost products of very high quality is the window of opportunity to launch ourselves as a manufacturing powerhouse in the world. But to sustain this position, we need to build technology as a differentiator for the future, parallel to the low-cost/high-quality path.

The path taken by Japan in the 50s and Korea in the 60s is powerful example that technology is the sustainable differentiator for a sustainable manufacturing platform. During the initial phase of low-cost and high-quality, we can get away with just know-how. We would probably be manufacturing products based on designs made by others – the how of building the product. Parallel to this, we need to build the “know-why” of the products. This will earn us the capability to design and manufacture the next products.

This transformation requires sustained investment over a long period of time in building deep knowledge and wisdom in each company. Such investments should come from forgiving capital that enables learning from failures. Most of the “know-why” is built on failures rather than successes. We need to create this stamina in the companies in India.

Profit-seeking capital typically has relatively shorter time horizons in its expectations of return, and thus it will not fully satisfy the conditions required for forgiving capital. Know-why in a manufacturing context cannot be built using the model of “burn rate” as in a start-up. Manufacturing companies need to be profitable, and this should be non-negotiable. But fiscal policies can be crafted that will enable the creation of forgiving capital from the profits earned. Earlier policies on deep deductions for research and development were cumbersome to implement, and there were questions of appropriateness. Efforts going into building know-why should be measured in a nuanced manner and discriminatingly provided with fiscal support.

(Dr. Jairam Varadaraj, Managing Director, Elgi Equipments Limited. The views expressed in the article are of the author and do not reflect the official position or policy of FinancialExpress.com.)

India’s big retail boom all set to be a premium experience this year

Source: Financial Express, 15 January 2023

Indian consumers with a taste for the good life have much to look forward to this year, as several high-end lifestyle brands are set to enter or expand in the Indian market. From apparel to accessories, food to beverage, premium is the key word on the retail horizon. And, both e-commerce and offline players are readying for a slice of the pie.

“A lot of global high-end and retail fashion brands see India as the next destination, as China has slowed down with the stigma associated with Covid-19. Europe is a very mature market in this sense and has an ageing population; it has also reached a saturation point in terms of the luxury retail sector. So, in a 10-year horizon, a lot of global luxury brands are expected in India,” said business strategist and independent director Lloyd Mathias.

US clothing retailer Gap is all set for its second coming in India, this time on the back of a partnership with Reliance Retail, a subsidiary of Reliance Retail Ventures (RRVL).

Reliance Brands (RBL), another subsidiary of RRVL, forayed into food and beverage retailing, announcing a partnership with UK-based fresh food and organic coffee chain Pret A Manger. The plan is to build the global sandwich franchise’s brand in the country, with the first expected to open in Mumbai before March 2023.

Canadian coffee chain Tim Hortons made its India foray with outlets in Gurugram and Delhi in August 2022. It has plans to open around 120 stores in India in the next three years at an investment of up to Rs 300 crore.

Last year in September, lingerie, clothing and beauty retailer Victoria’s Secret opened its first store in Mumbai. Tushar Ved, president, Apparel Group, which brought the brand to India, shared that two more stores in Bengaluru in 2023 and an eventual online category (after a few years) are in the pipeline.

Luxury fashion brand Valentino opened in Delhi last year, with plans to open in Mumbai soon. Paris-based luxury department store Galeries Lafayette is expected to open in Mumbai by 2024 and Delhi by 2025.

While brands like Gap, Victoria’s Secret, Pret a Manger and Balenciaga have set foot in India for expansion at a time when the cost of living crisis and soaring inflation is expected to have a deep impact globally, experts feel this upward trend will fuel luxury retail in the country as the Indian economy is in a better position than other Western markets.

With GDP growth, affluent class, better disposable income and global exposure for Indians, Mathias sees an increased amount of high-end consumers here. “Even if 1% of India’s 1.4-billion population consumes luxury, it’s a huge number for brands foraying into India,” he pointed out.

In fact, a further indication of consumer optimism regarding personal finances is that roughly seven of 10 Indian consumers are fairly confident about their financial situation over the coming year, says Saptarshi Banerjee, senior lifestyle research analyst, Mintel.

“Consumers’ desire to purchase premium goods of higher quality at a marginally higher cost and revenge buying — which is in play among affluent Indian consumers who were not necessarily affected by the pandemic and want to spend more on luxury products, eating out, experiences after a prolonged lull — is another factor fuelling more luxury retail in India,” he says.

Mintel’s Indian Consumer Report on Attitudes to Premiumisation 2021 suggests half of Indians are willing to pay more for premium products of superior product quality. Banerjee is of the view that the subsequent retail growth in India would be around luxury goods. However, the brands should employ an omnichannel strategy to achieve widespread growth across the country. “Since the pandemic, numerous luxury brands are available online from retailers like Tata Cliq Luxury, Ajio Luxe, and even The Collective. As a result, foreign luxury brands can cater to the convenience offered by online platforms (that only sell luxury goods) and offer distinctive upmarket shopping experiences in their physical stores,” says Banerjee.

An upward trend that experts witnessed during the festive season sales last year continues this year too. DLF Malls strengthened its brand portfolio by adding 130 unique brands across its retail and F&B categories in its eight premium and luxury properties in Delhi-NCR. “We are 130% pre-Covid levels in terms of demand and occupancy across all malls. We expect to grow month-on-month in October-December with an average growth of 15-20%. Our luxury retail segment is growing between 150-170%,” says Pushpa Bector, executive director, DLF Retail, and head, luxury and shopping malls.

Delhi’s Select Citywalk saw 7-8% growth in demand and increased footfalls last year. “Supply chain issues have been minimised and retail stores are stocked up. Luxury shopping is back, so are the premium brand categories. Footfalls have increased, people are eager to shop, get entertained at physical shopping centres,” says Yogeshwar Sharma, CEO and executive director, Select Citywalk, Delhi.

Reliance’s new consumer goods push targets deals with popular Indian brands, besides launching its own brands.

Aditya Birla Fashion and Retail (ABFRL) is working on strategic alliances and building a comprehensive set of iconic brands. In FY22, ABFRL launched a premium ethnic wear brand, Tasva, in partnership with designer Tarun Tahiliani. In May 2022, Singapore’s sovereign wealth fund GIC entered into a deal to acquire a 7.5% stake in ABFRL for Rs 2,195 crore. ABFRL picked up a 51% stake in designer Masaba Gupta’s House of Masaba label for Rs 90 crore and plans to scale it up. The group also launched its ‘House of Brands’ business – TMRW – in the direct-to-consumer segment, besides foraying into a bouquet of brands and strategic partnerships with designers, including Shantanu & Nikhil, Tarun Tahiliani and Sabyasachi.

Laying the groundwork for an energy-independent India

Source: Financial Express, 15 January 2023

By Pradeep Lala

Energy independence, the word that defined energy economics over the past few years, has gained prominence with India making significant steps towards becoming an energy-independent country by 2047. This vision is driven by sustained efforts to mitigate the effects of rising global temperatures by aligning with carbon neutrality clauses. By utilising the force of clean technology and renewable sources to drive change, green buildings, which evolved as a response to India’s rapid and ongoing trend towards being energy efficient, have gradually transformed and enhanced energy requirements.

The indigenous nature of clean sources gives local economies an advantage. Countries across the globe have been able to diversify their economies, protect themselves from the unpredictable price fluctuations of fossil fuels, promote inclusive economic growth, and generate employment by utilising renewable sources of energy. By 2030, electricity generated from renewable sources can account for 65% of the world’s total electrical production. This could decarbonize 90% of the power sector by 2050, massively cutting carbon emissions and helping to lessen the harmful effects of climate change.

India is now ranked fourth in the world in terms of renewable energy generation. Our current solar capacity is around 61.79 GW, up from 2.6 MW eight years ago. The contribution of renewable energy sources is about 40.7% (166.36 GW) of the total installed capacity. In line with various initiatives and policies introduced by the government, it encourages investment in the clean energy industry. India currently has a capacity for non-fossil fuel-based clean energy and includes nuclear plants of 6.78 GW, totaling up to 173 GW of clean energy, and projects with a capacity of 80 GW are being built to meet its goal of producing 500 GW of renewable energy by 2030.

Organizations across industries are establishing more stringent Environmental, Social, and Governance (ESG) goals to reduce their environmental impact, effectively address consumer concerns and expectations, and support corporate commitments to reduce carbon emissions while managing financial risk and upholding accountability. This delineates an organisation’s goodwill and long-term environmental stewardship toward all stakeholders, including customers, employees, and the public. Many organisations have discovered that using solar energy is the simplest and most cost-efficient way to swiftly achieve major environmental and sustainability related ESG goals.

Today, the trend of sustainability and renewable energy is quite prevalent in the real estate sector. To support India’s NDC, this sector needs to decarbonize by integrating renewable energy and energy-efficient strategies. Nearly 40% of annual global CO2 emissions come from this sector, and older infrastructure often makes a bigger contribution. Businesses can minimise their net carbon emissions and contribute towards mitigating the effects of climate change by implementing clean and sustainable facility management solutions.

For organisations to achieve their net-zero emission goals, the facility management sector will need to take a holistic and strategic approach that includes waste reduction, sustainable transportation, renewable energy, and energy efficiency. This includes retrofitting the building envelope and HVAC system, installing energy-efficient lighting, and using smart building technology to optimise energy use.

Additionally, the facility domain can also build on-site renewable energy equipment, such as solar photovoltaic panels and wind turbines, to provide clean, renewable energy and explore the potential of green power. An integrated facility management organisation has several facets: its operations, investments, management, and services intertwine, making sustainability the core of its operations. Green buildings that employ renewable energy often experience a 10% reduction in operating expenses in the first year. Planning preventive maintenance increases cost-effectiveness, equipment lifespans, and sustainability in a conducive manner.

An extraordinary evolution up and down the entire energy value chain is necessary to realise India’s vision of energy independence. As efforts are being undertaken to achieve this vision, businesses need to be cognizant of their carbon production and emission levels, as well as deploy smart and scalable facility management solutions that address this gap. The facility management sector will continue to play an instrumental role in empowering India’s commitment towards becoming a carbon-neutral economy.

‘More startups will opt for IPOs’

Source: Financial Express, 17 January 2023

The year 2023 is expected to be another formidable year for startups even as both global and domestic VCs sit on large amounts of dry-powder funds amounting to billions of dollars. Though late-stage dealmaking is expected to take a huge hit this year, fund managers and partners at domestic VC firms expect 2023 to be a reasonable year for early-stage startups. In an interview with Salman SH, Prime Ventures’ managing partner Sanjay Swamy shares his expectations for 2023. Edited excerpts:

Was 2022 a year of funding slowdown or a correction?

If you filter out the funding volumes from 2021, which was an aberration, and compare that with the 2022 and 2019 volumes, the figure looks almost similar. However, there’s no question that we moved into an era of a substantial slowdown. But this slowdown wasn’t an unexpected one, because broadly these bull run cycles don’t go on forever. We should expect 2023 to be a flat year in terms of funding volume growth. Growth-stage capital will still be very scarce and only exceptionally good companies will continue to attract capital. As a founder, if you’re lucky to have raised a large late-stage round in 2022, you should be utilising that capital ideally to break even rather than expecting to do another large raise this year.

Do you expect deals to be more selective in 2023? Would quarterly funding drop below the usual average of $3.5-4 billion?

Stage-wise, I expect seed rounds to have more activity this year in comparison to late-stage deals because this is the best time to start companies. The cost of funding new firms just became much lower for VCs as well, with founders willing to accept lower valuation multiples. But at the moment, deals above Series B stages will become much more selective because of the bar (funding criteria).

Historical data indicates that global VC funds have begun to slow down investments in India. Is this situation an advantage for domestic VCs in India?

Do you expect deals to be more selective in 2023? Would quarterly funding drop below the usual average of $3.5-4 billion?

Stage-wise, I expect seed rounds to have more activity this year in comparison to late-stage deals because this is the best time to start companies. The cost of funding new firms just became much lower for VCs as well, with founders willing to accept lower valuation multiples. But at the moment, deals above Series B stages will become much more selective because of the bar (funding criteria).

Historical data indicates that global VC funds have begun to slow down investments in India. Is this situation an advantage for domestic VCs in India?

Citroen India partners with Jio-BP to build EV infrastructure

Source: Financial Express, 17 January 2023

Citroen India on Friday announced a strategic partnership with Jio-BP, a fuels and mobility joint venture between Reliance Industries Limited (RIL) and BP, to build EV infrastructure and services across its network.

The partnership will enable Jio-BP to install DC fast chargers across Citroen’s key dealership network and workshops across the country in phases. These chargers will also be open to the entire universe of EV car customers to help boost EV adoption among consumers.

“With the New Citroën ë-C3 All Electric scheduled for launch in Q1 2023, this partnership will ensure Jio-bp’s charging infrastructure network is accessible via the My Citroën Connect app,” the company stated in a press release.

Currently, Jio-BP operates a rapidly expanding network of EV charging and swapping stations under the Jio-BP pulse brand. The entire range of Jio-bp pulse offerings can be accessed via its mobile app that helps customers easily locate EV charging stations in their vicinity, facilitates digital payments amongst others.