Tag: CII

India must increase share in global manufacturing, says FM Nirmala Sitharaman at CII event

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Manufacturing in India must increase at such a scale that its share rises globally as well, Union Finance Minister Nirmala Sitharaman said at the CII Annual Business Summit 2024 on May 17.

“We need to see how best this can be given policy support,” she said, adding that expanding manufacturing will help India become self-reliant.

Sitharaman cited the example of the telecom sector production-linked incentive (PLI) scheme, which she says has helped India become ‘aatma nirbhar’ in a better way.

“Sixty percent import substitution has been achieved under telecom PLI. Today, 99% of all mobiles sold in India are made in India,” she said, adding that India is becoming Apple’s second-largest manufacturing hub outside China. She pointed out that the rapid growth in the past year is very noticeable, with the number of GCCs in the country rising to 1,882, up over 50%.

“Policy stability, absence of flip-flops and a corruption-free environment is the kind of government we want,” the Finance Minister asserted.

Sitharaman added that the Prime Minister Narendra Modi-led government looks at the private sector as a partner in developing India. “By 2047, we see a very big role for the private sector, with the government acting as a facilitator and an enabler.”

She also explained that since it is the election season, there cannot be a slip in communication. The government can hear and listen but not comment, so she wants to leave some thoughts for the industry to mull over.

Also Read: FM Nirmala Sitharaman warns of household savings risks amid F&O retail trading surge

The Finance Minister claimed Prime Minister Modi is coming back with a good majority, so the government looks forward to what else can be done in the July budget and that a lot of consultation is required with the industry on that.

“The India story is a compelling growth story. We can consider some of these once the government is elected, looking at India with a global growth contribution of 18% over the next five years,” she said.

Citing an S&P report, the minister highlighted that India’s consumer market is likely to double by 2031 and that a $2.9 trillion opportunity lies here. “India will continue to remain the fastest-growing economy.”

The Reserve Bank of India (RBI) and government’s economic survey shows that today India enjoys a twin balance sheet advantage and that government and corporate balance sheets are in the pink of health. Banks can be buoyant enough to push credit growth and can be the track on which the economy will grow fast, she said.

She also spoke about AI, a space where she said skilling is being ramped up. Also, speaking about the renewables sector, she said the transition to green energy has to be responsibly built up. “The push in solar energy has shown the extent of job creation and has also generated a lot of interest.”

Also Read | Exclusive: FM Nirmala Sitharaman says poverty alleviation can’t be achieved by throwing money at the problem

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India-UAE non-oil trade could hit $100 billion by 2030: CII President asserts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The target of $100 billion non-oil trade between India and the UAE by 2030 is ambitious but achievable as huge business opportunities are there in both the nations for sectors such as textiles, jewellery and pharma, CII President R Dinesh said on Sunday.

He said that the free trade agreement between India and the UAE, which was implemented in May 2022, has resulted in a surge in bilateral trade and investments.

Dinesh was here to participate in global investors’ event ’Investopia’ and various bilateral meetings, including with many participants at the WTO (World Trade Organisation) Ministerial Conference.

“The target to achieve $100 billion in non-oil trade between India and UAE is ambitious but I do believe that it is achievable and recent developments are encouraging in this regard,” the CII president told.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

All listed companies must insure independent directors from liability: CII

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Confederation of Indian Industry (CII) has outlined guidelines for safeguarding Independent Directors, emphasising the need to protect them from liabilities for their appointment and evaluation. This can enhance the talent pool of independent directors and attract quality directors to the boards of Indian companies.

While SEBI’s Listing Obligations and Disclosure Requirements (LODR) norms mandate ‘Liability Insurance’ for the top 1,000 entities by market cap, CII proposes extending this to all listed companies for a robust corporate governance ecosystem. The guidelines stress formalising indemnity and/or insurance through written agreements for improved board quality.

Sanjiv Bajaj, Chairman of CII’s Corporate Governance Council and Bajaj Finserv’s leader, emphasises the crucial aspect of liability differentiation between non-executive directors and independent directors. He stresses the importance of holding independent directors accountable for the right matters to attract high-quality talent. The CII committee proposes clarity on Directors & Officers (D&O) availability even post-resignation, minimizing exclusions and de-minimus limits, and protecting actions taken in good faith.

The exclusions and the de-minimus limits for claims in the D&O policy ought to be minimized. Also, action taken in good faith needs to be protected with a clear understanding of when liability arises and the difference between civil and criminal liability.

Corporate lawyer Zia Mody, chairing CII’s Committee on Regulatory Affairs, advocates continued protection for independent directors after their term, expressing concerns about their vulnerability to regulatory scrutiny.

“Independent Directors ought to be much more insulated than they are from SEBI and other institutions but the fact is that they are often dragged in,” she said, adding that often regulators tell independent directors “you ought to have known and that is a very difficult position for an independent director to be in.”

Zia adds that decriminalisation of many offences is a relief but the industry is unable to attract good talent here and those available have too many boards to serve.

Apart from the protection of the directors, the guidelines also say that their compensation may be commensurate to the heightened roles and responsibilities to attract quality resources in this space.

In a ten-point guideline for strengthening the participation and role of independent directors, the report suggests a more evolved and involved role by the directors to actively participate in the decision-making process of the board, it emphasises continuity by way of two 5-year terms and also succession planning when a term is about to expire in 12 months.

The guidelines place significant emphasis on enhancing diversity within Indian company boards, encompassing not only women directors but also directors from diverse backgrounds to bolster the ESG journey and foster varied perspectives for effective decision-making.

The guidelines stress the importance of a thorough evaluation process for board members, with timely disclosures to shareholders. It is recommended that companies outline the purpose, methodology, and objectives of the board review policy regularly.

Sanjeev Krishan, Chairman of PwC India said, “Parameters of evaluation keep changing and we need to work on that.” Highlighting the importance of this advisory Bajaj adds, “Variety of corporates in India has grown dramatically and foreign investor participation is also big and this is where the guidelines will play a role for greater transparency.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Union Budget 2024: CII suggests focus on capex hike, GST revamp, PLI expansion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

With just about a week left for the announcement of the Union Budget 2024, the focus is on Finance Minister Nirmala Sitharaman. The Confederation of the Indian Industry (CII) offered its recommendations for the Finance Ministry on Wednesday. January 24.

From the economic policy viewpoint, the focus should be on economic development, social development, investment, industry, trade, infrastructure, among others, making India a developed economy by 2047, CII said in a statement.

It added that while maintaining the fiscal deficit target of 5.9% of gross domestic product (GDP) for FY24, the target should be reduced to about 5.4% of GDP for FY25.

It stressed an increase in capital expenditure by at least 20% to ₹12 lakh crore, which is higher than the pre-pandemic 12% annual growth between FY16 and FY20 and lower than the growth rates in the last three years.

CII also pointed out a recommendation to reform the goods and services tax (GST) to a three-rate structure, with a low rate for essentials, a standard rate for most goods, and a high rate for luxury and demerit goods.

The trade association advised the government to expand production linked incentive (PLI) to labour intensive sectors, such as apparel, toys and footwear, for boosting employment generation and to sectors with large imports but domestic capability, like capital goods and chemicals, to reduce import dependence.

It also emphasised that the government should prioritise those public sector enterprises (PSEs) for disinvestment that are receiving higher interest and expected valuations. While focusing on investor interest, the government should come up with a three-year timeline for the disinvestment of the PSEs, CII said.

The industry body has advised creating mechanisms for R&D partnerships between public institutions, academic institutions and industry, citing the weak interface of India’s public R&D institutions.

The non-governmental trade association also asked the finance ministry to introduce a national artificial intelligence policy and facilitate the creation of sovereign AI infrastructure in public-private partnership (PPP) mode. It also highlighted the need to create a workforce through skilling and the inclusion of digital and AI skills in the general curriculum of schools.

Citing the government’s estimates that suggest ₹20.8 trillion locked in income tax disputes as of 2021-22, which was nearly 8.9% of India’s nominal GDP for the fiscal year, there is a need to reduce income tax litigation through dispute resolution mechanisms like faceless appeals, advance pricing agreement (APA) mechanism, board for advance ruling (BAR) and dispute resolution scheme (DRS).

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Road Minister Gadkari blames increase in road accidents on poor planning and declining quality of engineers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Union Minister for Road Transport and Highways Nitin Gadkari, on January 16, blamed the rise in traffic accidents happening in India on the declining quality of engineering graduates in the country and poor project planning by them.

“Road safety is a very serious concern in India. The quality of DRPs (detailed project reports) for road projects has fallen in the last few years and while people want to blame drivers, I think road accidents happen because of engineers,” Gadkari said while addressing the CII National Conclave on “Road Safety – Indian Roads@2030 – Raising the Bar of Safety.

“The main problem is road engineering and defective planning, and defective DPRs,” he said, adding that the government will work towards reducing road accident deaths by 50% by 2030.

The latest road accident reports revealed that in 2022 India witnessed 460,000 road accidents, 168,000 deaths, and around 400,000 serious injuries.

Moreover, there are 53 road accidents every hour and 19 deaths in India. This reflected the urgent need for comprehensive safety measures to be taken up by all concerned authorities.

Gadkari also added that there had been a 12% increase in road accidents and a 10% rise in road accident deaths, resulting in a socio-economic loss of 3.14% to gross domestic product (GDP).

Road accident reports also found that an alarming 60% of deaths occurred among the young age group of 18 to 35 years.

He also emphasized the four crucial ‘E’s of road safety: engineering, education, enforcement, and emergency medical services.

“Accident Death is loss of bread-earner in a family, professional loss to employer, and overall loss to the economy,” the minister said.

Gadkari urged the industry and government to collaborate on solutions to prevent road accidents, emphasizing the importance of education in building safer infrastructure and promoting safer driving habits.

He also highlighted the need for stronger law enforcement and responsive emergency medical services. Addressing a driver shortage of 2.2 million in the country, the minister encouraged the industry to initiate training programmes for new drivers to enhance road safety.

The minister highlighted the positive outcomes of implementing a system of rewards for good traffic behaviour. He urged regular eye check-ups for drivers, encouraging organisations to create free camps as part of their corporate social responsibility.

Gadkari also emphasised that education and awareness involving schools, colleges, NGOs, start-ups, technology providers, IITs, universities, and traffic and highway authorities are crucial for spreading good practices in road safety.

In November 2023, the International Road Federation (IRF) submitted a proposal to the government to remove the 18% goods and services tax (GST) charged on helmets. This move is an attempt to encourage two-wheeler riders to wear helmets.

In 2022, More than 70% of road accident deaths were among two-wheeler riders, and around 50,029 people who died were riding two-wheelers without helmets.

Earlier this week, Gadkari had announced that the National Highways Authority of India will deactivate FASTags with valid balances but with incomplete KYC by banks post-January 31, 2024.

To enhance the efficiency of the electronic toll collection system and provide seamless movement at toll plazas, NHAI has taken the ‘One Vehicle, One FASTag’ initiative that aims to discourage the use of single FASTag for multiple vehicles or linking multiple FASTags to a particular vehicle.

NHAI said in their statement that this new rule of KYC has been imposed after they received data if multiple FASTags issued for one vehicle, or one FASTag being used for multiple vehicles, not complying with the RBI guidelines.

Apart from this, FASTags are sometimes deliberately not fixed on the windscreen of the vehicle, resulting in unnecessary delays at toll plazas and causing inconvenience to fellow national highway users.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BCG anticipates FMCG volume uptick aided by stable pricing, more products

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Abheek Singhi, MD & Senior Partner of Boston Consulting Group (BCG) believes there could be an uptick in volumes for the fast moving consumer goods (FMCG) sector over the next 12 months.

“There is a set of supply-side or industry actions that will drive some of this growth in the next 6-12 months,” he said highlighting the softening of commodity prices, leading to less product price increases, and the industry’s focus in expanding product categories.

In its latest report on the FMCG industry, presented at the Confederation of Indian Industry’s (CII) FMCG Summit, BCG pointed out that the FMCG sector’s volume growth has not kept pace with the country’s GDP growth over the past 15 years.

From 2007 to 2023, while India’s GDP grew at an average rate of 5.9%, FMCG volume growth was only 3.4%. A more significant slowdown was observed between 2017 and 2023, where FMCG volume growth declined from 3.5% to 2.9%, impacted by various disruptive events like the implementation of GST, demonetisation, and the COVID-19 pandemic.

The report also highlighted consumer spending patterns, revealing that the affluent 16% of the population accounts for 32% of total consumption, with the middle-income households contributing the rest. Another factor affecting FMCG volume growth is the sharp rise in consumer staple prices since 2012, which has led to a reduction in FMCG product consumption relative to other items.

Also Read | 3 of 4 households in India have ITC products, analysts expect FMCG focus to drive growth

Abheek Singhi, MD & Senior Partner at Boston Consulting Group, remains optimistic about the sector’s future. He predicts an upturn in FMCG volume growth in the next 12 months, driven by supply-side actions and industry efforts. This expected improvement comes as a welcome sign for the industry, which is looking to rebound from a period of slower growth.

Also Read | The fifth ‘P’ in FMCG: How politics shapes what we consume

For the entire explanation, watch the accompanying video

Catch all the latest updates from the stock market here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Levying border adjustment tax to meet green commitments morally wrong: Sitharaman

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Finance Minister Nirmala Sitharaman on Thursday, December 7, said any move on imposition of cross-border adjustment tax by developed countries to meet their green commitments is morally wrong and goes against the interest of developing countries of ‘Global South’. “The single mono-sided decision of imposition of border adjustment tax ‘the logic just goes against the concern of the Global South’.

“But cross-border imposition (of tax) and that money going towards somebody else’s green agenda, if anything, is not moral at all,” Sitharaman said at the CII Global Economic Policy Forum. The minister said every country will need to generate resources to meet the green commitments made globally.

Her comments come in the backdrop of the European Union’s announcement to impose carbon tax on imports from certain sectors. The CBAM (Carbon Border Adjustment Mechanism) or carbon tax (a kind of import duty) will come into effect from January 1, 2026, but from October 1 this year, domestic companies from seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU.

In her address, Sitharaman said the base energy requirements of a country cannot be filled by renewable energy sources, but it is possible to think in terms of spreading renewable energy in such a way that individual participation is ensured. India is rapidly moving in the renewable energy space, particularly in solar, and is in talks with many countries for a grid connectivity across the world by the ISA members.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CII president raises GDP outlook, says industry looks for continuity of policy regardless of party in power

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Confederation of Indian Industry (CII) President R. Dinesh, in an exclusive conversation with CNBC-TV18, said industry looks for continuity of policy irrespective of the party in power. His comments were made in the wake of recent poll results in five vital states.

“It is good that the results are out and we know what’s happened,” he said.

“And for us, I think as (representatives of) industry, continuity of policy is most important. And whichever party is in power, making sure that we have our agenda clear is very important,” he added.

The elections saw BJP reversing its declining fortunes at the provincial level by sweeping three major Hindi heartland states — Rajasthan, Madhya Pradesh and Chhattisgarh. The results also came as a shock for K. Chandrashekhar Rao’s BRS, which lost power in Telangana to the Congress party.

The CII president also presented revised GDP growth estimates. As per the industry body, India will witness 6.8% growth for FY24 against the old estimates 6.5-6.7%. CII is also bullish for FY2024-25 with 7% GDP growth.

“I would actually say from the CII perspective, it has made me more confident to say that we are now looking at around 6.8% growth for the year as compared to the earlier statement of between 6.5-6.7%. So I can say that the good news is arising from not just Q2, but also what has happened in H1.”

Dinesh added that he is most bullish on the construction sector. “From a specific sector, I think the focus from the government and the infrastructure side has made sure that … the construction equipment, cement, and all sectors related to infrastructure have been the first ones to really show some strength,” he said.

“We also saw post-COVID, the comeback of most of the other support activities like hotels and transport etc. has resulted in revival and investment in infrastructure.”

With Cyclone Michuang wreaking havoc in Chennai and neighbouring districts, he said it’s a good thing that factories and business were affected for less than 36 hours. The cyclonic storm on Wednesday (December 6) made landfall in coastal Andhra Pradesh, triggering heavy rain and high-velocity winds that uprooted trees and electric poles.

On the question of sentiments within the body on frequent ED and I-T raids, he said he has not heard any negative feedback due to the probes. “CII stands for companies who follow the law and rules,” he said.

Also Read:Nita Ambani clinches top honor as ‘Sports Leader of the Year – Female’ at CII Scorecard 2023

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

89% firms, 87% individuals say claiming tax refund is now made easy, says CII survey

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

In a testament towards renewed efforts of the tax department leading to enhanced taxpayer relationship, CII in an Income Tax refund survey found that automation and simplification in the income tax refund process have raised the trust factor among the taxpayers.

According to the survey, 89% of the individuals and 88% of the firms surveyed have seen a greater reduction in waiting time for receiving income tax refunds. “87% of the individual respondents and 89% of firms revealed that the process of claiming income tax refund as convenient in a recent survey conducted by CII to assess speed and efficiency of income tax refunds,” the survey highlighted.

The survey also saw the overwhelming majority of respondents (above 90%) including both individuals and firms/enterprises revealing that an ITR refund gets automatically generated after filing the ITR.

“The survey further revealed that 75.5% of the individuals and 22.4% of the firm-level respondents did not pay any excess TDS over and above their estimated tax liability. The respondents (individuals – 84% and firms – 77%) also revealed that the process of checking refund status was now smooth,” the survey found.

Also Read: Tax department sets strict targets to resolve appeals: sources

According to CII, the continued efforts to make the process of getting income tax refunds simple and efficient, 89% and 88% of individuals and firms respectively were of the view that there has been a greater reduction in waiting time to get an income tax refund in the last five years, between 2018-2023.

Commenting on the survey results, CII President R Dinesh said, “The extensive measures which have been introduced by the government in the recent years to streamline, simplify and automate the taxation regime has borne rich dividends as is evident from the upbeat survey results on assessing speed and efficiency of income tax refunds conducted by CII.”

“The significant reduction in waiting time to get an income tax refund over the last 5 years by both individuals and firms, as shown by the survey results is encouraging as it reflects the Government’s unrelenting efforts to make the process of getting income tax refunds simple and efficient over the years,” said Chandrajit Banerjee, Director General, CII.

The individual respondents (53%) and firm-level respondents (45%) cited that it takes less than a month to receive an income tax refund. Reflecting the overall efficiency speed and efficiency of the income tax refunds, 83% of the surveyed individual respondents and 85% of the surveyed firm-level respondents shared an increased trust with the Income tax department, the survey said.

Also Read: Income Tax Department cracks down on FPIs, seeks all this information

The survey was conducted in October 2023 among 3,531 respondents out of which 56.4% were individual respondents and 43.6% were firms or enterprise or organisations level respondents. The survey was conducted at the pan India level, wherein the maximum participation was steered from the major states.

The CII Income Tax Refund Survey report was presented to the union finance minister of India, Nirmala Sitharaman on Wednesday (November 22).

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow