India surpasses Sri Lanka to become the world's second-largest tea exporter.

India became the world's second-largest exporter of tea in 2024, with 254 million kg sold, according to figures given by the Tea Board of India. India overtook Sri Lanka to grab the second position in the world's tea export rankings, but Kenya continued to hold the top spot. In 2024, Kenya exported more than 500 Mkg of tea.

In terms of tea exports, India and Sri Lanka were tied at about 231 Mkg in 2023, but India surpassed the island nation in 2024 with 24 Mkg more exports. India's export margins for 2024 were second-best only to its exports of almost 256 Mkg of tea in 2018. In 2024, India exported Rs 7,112 crore worth of tea.

Although India's exports have been between 200 and 225 Mkg for the past few years, with the exception of 2018, this remarkable increase has given the tea sector hope that it could reach the 300-Mkg milestone by 2030. An average of 1,400 Mkg of tea are produced annually in India.

The orthodox segment has accounted for the majority of exports, and its expansion has been aided by a number of recent initiatives from the federal government and state governments. According to Prabir Kumar Bhattacharjee, secretary general of the Tea Association of India, "the industry is hopeful of increasing its export basket in the years to come with the favorable export policy by the Center and support by the state governments."

The manufacturing landscape in India is changing due to PLI schemes.

The Production Linked Incentive (PLI) schemes launched by the Indian government are transforming the country's manufacturing landscape, ushering in a new era of growth and self-reliance. This initiative is a key component of the Aatmanirbhar Bharat vision, aiming to promote domestic manufacturing, reduce import dependence, and enhance export competitiveness.

Key Features of PLI Schemes

Sector-specific incentives: PLI schemes offer incentives to specific sectors, such as electronics, pharmaceuticals, textiles, and automotive, to promote domestic manufacturing.

Performance-based incentives: Incentives are provided based on the achievement of specific performance targets, such as production volume, revenue, and export growth.

Investment promotion: PLI schemes encourage investment in new plant and machinery, research and development, and skill development.

Benefits of PLI Schemes

Job creation: PLI schemes are expected to create millions of new job opportunities in the manufacturing sector.

Export growth: By promoting domestic manufacturing, PLI schemes aim to increase India's export competitiveness and reduce the country's trade deficit.

Reduced import dependence: PLI schemes aim to reduce India's dependence on imports by promoting domestic manufacturing of critical components and products.

Increased investment: PLI schemes are expected to attract significant investments in the manufacturing sector, driving economic growth and development.

Sectors Covered under PLI Schemes

Electronics: PLI scheme for electronics manufacturing aims to promote the production of electronic components, such as semiconductors, and finished goods, such as mobile phones and laptops.

Pharmaceuticals: PLI scheme for pharmaceuticals aims to promote the production of bulk drugs and formulations, reducing India's dependence on imports.

Textiles: PLI scheme for textiles aims to promote the production of high-quality textiles, such as technical textiles and sportswear.

Automotive: PLI scheme for automotive aims to promote the production of electric vehicles, hybrid vehicles, and auto components.

Impact on the Economy

The PLI schemes are expected to have a significant impact on the Indian economy, driving growth, employment, and export competitiveness. By promoting domestic manufacturing, PLI schemes aim to reduce India's trade deficit and increase the country's share in global exports.

The PLI schemes launched by the Indian government are a key initiative to promote domestic manufacturing, reduce import dependence, and enhance export competitiveness. By providing sector-specific incentives and promoting investment in the manufacturing sector, PLI schemes aim to drive economic growth, employment, and export competitiveness, aligning with the vision of Aatmanirbhar Bharat.

Cashless India: a ₹1,500 crore incentive scheme for BHIM-UPI transactions of small value

The Modi government has taken a significant step towards promoting digital payments in India, approving a ₹1,500 crore incentive to encourage low-value BHIM-UPI transactions among small merchants. This move aims to boost the country's journey towards a cashless economy.

Key Highlights of the Incentive Scheme:

Eligibility: The scheme covers UPI transactions up to ₹2,000 for small merchants.

Incentive Rate: An incentive of 0.15% per transaction value will be provided for eligible transactions.

Disbursement: 80% of the admitted claim amount will be disbursed without conditions, while the remaining 20% will be contingent upon the acquiring bank's technical decline and system uptime.

Benefits of the Scheme:

Convenience and Security: Digital payments provide convenience, security, and faster cash flow for merchants and customers.

Enhanced Access to Credit: Digital footprints enable better access to credit for small merchants.

Promoting Financial Inclusion: The scheme supports the government's vision of a less-cash economy, formalizing transactions and promoting financial inclusion.

Objectives of the Scheme:

Promoting Indigenous BHIM-UPI Platform: Achieving a target of ₹20,000 crore total transaction volume in FY 2024-25.

Supporting Payment System Participants: Building a robust and secure digital payments infrastructure.

Penetrating UPI in Rural Areas: Promoting innovative products like feature phone-based and offline payment solutions.

The payments industry has expressed concerns over the adequacy of the ₹1,500 crore incentive, suggesting it may hinder ecosystem growth. However, the government's efforts to promote digital payments are expected to have a positive impact on the country's journey towards a cashless economy.

Digitally atmanirbhar: India gets closer to having its own web ecosystem after Zoho wins the country's web browser challenge.

New Delhi, 20 March: Ashwini Vaishnaw, the Union Minister of Railways, Electronics, and IT, announced on Thursday that India is ready to launch its own web browser, marking yet another significant step in the development of an indigenous internet ecosystem.

The statement was made by Vaishnaw during the Indian Web Browser Development Challenge (IWBDC) awards ceremony.

Sridhar Vembu founded Zoho Corporation, a software startup that took home the competition's top prize.

The challenge was organized by the government to promote the creation of a domestic web browser.

Vaishnaw emphasized the government's vision of transforming India into a "product nation" as opposed to only a supplier of IT services.

"Previously, government institutions were primarily responsible for product development; however, a more inclusive model is currently being adopted," he stated.

In order to ensure the widespread adoption of indigenous solutions, he emphasized the necessity of expediting the process from innovation to large-scale production.

The minister also urged industries and startups to concentrate on creating scalable and safe technology in order to increase India's digital independence.

An indigenous web browser would comply with India's Data Protection Act and improve data security, among other advantages.

India's digital sovereignty will be strengthened, the official statement said, by guaranteeing that user data stays in the nation.

The browser will also be made to function flawlessly across a variety of systems, such as Windows, iOS, and Android, providing a safe and easy user experience.

Vaishnaw further emphasized how crucial it is to make India a product-driven country. He emphasized that India must now concentrate on developing and exporting its own technology products, even if he noted that the service industry is still vital to the economy.

Employees' salaries grew at 11% CAGR in 10 years

In India, during the first ten years of Prime Minister Narendra Modi's administration, the compound average growth rate (CAGR) of employee salary was 11.1%. This number includes the post-Covid era, which saw substantial changes in job arrangements, as disclosed by Finance Minister Nirmala Sitharaman in Parliament.

A fundamental change in workforce participation was brought about by the Covid-19 epidemic, as flexible and distant work became more popular. "One of the long-term impacts of Covid has affected the nature of work itself," Sitharaman said, highlighting these developments. Individuals either decide not to work full-time or opt to work from home.

This change has pushed industries to adopt automation and digital solutions, changing the labor market, corporate employment practices, and productivity models.

The latest Economic Survey shows that the gap between business profitability and wage increases is widening. According to the analysis, maintaining domestic demand and guaranteeing consistent corporate revenue over the medium to long term depend on matching pay increases with profit growth.

Sitharaman addressed concerns on India's household debt-to-GDP ratio, pointing out that it is still much lower than that of its peer group and developed economies.

"People are talking of it (household debt) as though India's is high because of the way we handled Covid," she said, dismissing claims that pandemic-related economic measures had caused household debt to reach alarming levels. I apologize that they are incorrect.

The Government e-Marketplace's FY25 Gross Merchandise Value (GMV) exceeds Rs 5 lakh crore.

 

The commerce ministry said in a statement on Monday that the Government e-Marketplace (GeM) has reached a major milestone by breaking Rs 5 lakh crore in Gross Merchandise Value (GMV) on its platform more than 18 days before the end of the fiscal year 2024–25.

This achievement highlights how quickly GeM has developed into a crucial public procurement platform that serves more than 1.6 lakh government entities throughout India.

The Ministry of Commerce & Industry said in a statement on Monday that the platform's development has been especially remarkable, going from Rs. 4 lakh crore to Rs. 5 lakh crore in less than 50 days since January 23.

GeM implemented significant regulatory changes in recent months to improve market accessibility and assist a variety of sellers, including as startups, women-led enterprises, and Micro and Small Enterprises (MSEs). Modifications including the removal of caution money requirements, vendor assessment fees, and transaction fees have increased the platform's inclusivity. With more than 22 lakh merchants and service providers registered on GeM as of February 13, the procurement environment is lively and competitive.

GeM has helped the public save more than Rs. 1,15,000 crore. The platform's registered purchasers include departments, ministries, public sector businesses, and municipal governments, enabling digital procurement at all governmental levels.

GeM is dedicated to supporting innovation, increasing inclusivity, and providing value to both government buyers and sellers as it continues on its upward trajectory. This will strengthen India's public procurement ecosystem and aid in the nation's economic development.

FM Sitharaman launches app for PM Internship Scheme

 The PM Internship Scheme (PMIS) mobile app was introduced at Parliament by Finance Minister Nirmala Sitharaman in the presence of Minister of State for Corporate Affairs and Road Transport Harsh Malhotra. For youth in India, the app seeks to improve industry participation and expedite access to internship opportunities.

As their participation is essential for nation-building and developing a trained workforce, she asked India's top 500 corporations to get involved. Harsh Malhotra agreed, stating that the PMIS App would notably improve internship accessibility, guaranteeing greater involvement from young people across India.

In addition to the app's release, the Ministry of Corporate Affairs (MCA) and the Confederation of Indian Industry (CII) will collaborate to open a PMIS facilitation center in Kolkata. PMIS cells will be integrated by the CII, which runs 47 model career centers, to assist applicants with the application process.

PMIS Expansion and Benefits

In the first round of PMIS, which was announced in the Union Budget for 2024–2025, 28,141 individuals accepted internship offers. With a target of 1.25 lakh internships for the 2024–25 fiscal year, the current second round, which was introduced in January, intends to offer over 100,000 internship opportunities across more than 300 companies.

The initiative aims to involve the top 500 corporations over the next five years and eventually offer internships to 10 million young professionals.

Under the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, interns receive a ₹5,000 monthly stipend, a ₹6,000 one-time award for incidental expenditures, and insurance coverage.

In order to qualify, a candidate must be between the ages of 21 and 24, have finished Grades 10 and 12, and possess an undergraduate degree, an ITI diploma, or other technical qualifications.

PM Surya Ghar: Muft Bijli Yojana Crosses Milestone of 10 Lakh Installations

 

The Ministry of New and Renewable Energy (MNRE) said on Tuesday that PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), the largest household rooftop solar initiative in the world, had completed 10.09 lakh installations nationwide, marking a major milestone.

The ambitious plan, which Prime Minister Narendra Modi launched in February 2024, is to minimize dependence on traditional power sources and empower citizens to become energy producers by giving one crore residential homes free electricity through rooftop solar installations.

According to the Ministry, 47.3 lakh applications have been submitted for the PMSGMBY scheme, and 6.13 lakh beneficiaries have successfully received subsidies totaling Rs 4,770 crore.  One of the scheme's main features is the availability of collateral-free loans through 12 Public Sector Banks (PSBs) at a 6.75 percent subsidized interest rate for loans up to Rs. 2 lakhs, which makes rooftop solar installations more affordable for everyone.

Up to March 10, 3.10 lakh loan applications were received, 1.58 lakh of which were approved, and 1.28 lakh of which were issued, guaranteeing greater accessibility for possible recipients.  According to the Ministry, recipients earn up to Rs 78,000 in subsidies for rooftop solar systems up to 3KW, which significantly reduces installation costs.

Chandigarh, Daman, and Diu are at the leading edge of the country's renewable energy adoption, having met all of their government building rooftop solar targets.  States like Tamil Nadu, Gujarat, Maharashtra, and Rajasthan are also making a substantial contribution to the total installation numbers.

Modi Govt empowering MSMEs for success

The Modi government has been working tirelessly to empower Micro, Small, and Medium Enterprises (MSMEs) for success. The government's efforts are focused on providing maximum support to MSMEs, which is reflected in the Prime Minister's statement, "For us, MSME means Maximum Support to Micro Small and Medium Enterprises".

Key Initiatives

Revised MSME Definition: The government has revised the definition of MSMEs to ensure that they continue to receive benefits and support even as they grow and expand.

Mudra Yojana: The Mudra Yojana has been instrumental in providing loans to MSMEs without guarantees. So far, about Rs 19 lakh crore has been disbursed under this scheme, benefiting over 6 crore entrepreneurs.

GeM Portal: The government has created the GeM (Government e-Marketplace) portal to provide MSMEs with a platform to sell their products and services to the government.

Prime Minister's Employment Generation Programme: This program has been revamped to provide employment opportunities to over 30 lakh people, with a focus on MSMEs.

RAMP Scheme: The government has launched the RAMP (Raising and Accelerating MSME Performance) scheme worth Rs 6000 crore to support MSMEs.

Benefits to MSMEs

Increased Access to Credit: The government's initiatives have made it easier for MSMEs to access credit, with loans being provided without guarantees.

Simplified Regulatory Framework: The government has simplified regulatory processes, reducing bureaucratic hurdles and encouraging entrepreneurship.

Enhanced Competitiveness: The government's initiatives have helped MSMEs become more competitive, both domestically and globally.

Increased Employment Opportunities: The government's initiatives have created employment opportunities for over 30 lakh people, with a focus on MSMEs.

Empowering Women Entrepreneurs

Mudra Yojana: The Mudra Yojana has been particularly beneficial for women entrepreneurs, with about 70% of the loans disbursed under this scheme going to women.

PM Svanidhi Yojana: The PM Svanidhi Yojana has provided loans to street vendors, including women, without guarantees.

The largest food processing plant in Asia will be Patanjali Mega Food & Herbal Park in Nagpur

The plant uses a zero-waste technology and has a processing capacity of 800 tons per day.

The plant has a zero-waste technology and has a processing capacity of 800 tons per day. It ensures sustainability beyond juice production by using cutting-edge international technology to extract volatile and aroma oils from orange peels. This project has been the result of extensive research and effort.

Patanjali aims to help farmers and create jobs in the area, which is in line with Prime Minister Narendra Modi's goal of creating a skilled labor force through his Skill Training Program.  Modern packaging lines, advanced research labs, and state-of-the-art processing systems are all features of the facility that ensure outstanding product quality.

Oranges, limes, gooseberries (amla), pomegranates, guavas, bottle gourds, carrots, mango pulp, as well as tomato and onion pastes, are among the raw materials that the plant will handle.  Although Patanjali's products have promise for a worldwide market, providing Indian consumers with export-quality items remains to be its primary priority.

Waste into Wealth

PM Modi's vision of "Waste to Wealth" is transforming India's circular economy, expected to generate:

Key Benefits

Market value: Over $2 trillion by 2050, creating a significant economic impact.

Employment opportunities: Over 1 crore (10 million) jobs by 2050, providing livelihoods for millions.

Sustainable growth: Promoting sustainable growth, reducing waste, and conserving natural resources.

Initiatives Driving Growth

Swachh Bharat Abhiyan: Improved waste management and sanitation, creating a clean and healthy environment.

Make in India: Encouraging manufacturing and industrial growth, promoting domestic production and reducing reliance on imports.

Atal Innovation Mission: Fostering innovation and entrepreneurship, providing support for startups and entrepreneurs.

Impact

Economic benefits: Creating new industries, jobs, and revenue streams, contributing to India's economic growth.

Environmental benefits: Reducing waste, pollution, and carbon footprint, promoting sustainable development and environmental protection.

Social benefits: Improving public health, sanitation, and quality of life, enhancing the overall well-being of citizens.

Key Sectors Contributing to Growth

Waste management: Creating a circular economy by converting waste into wealth, generating revenue and employment.

Renewable energy: Promoting the use of renewable energy sources, reducing dependence on fossil fuels and mitigating climate change.

Sustainable infrastructure: Developing sustainable infrastructure, including green buildings, sustainable transportation, and eco-friendly urban planning.

India's R&D Revolution

India has made significant strides in shaping its future economy by prioritizing research and development (R&D). Over the past decade, the country has witnessed a substantial increase in R&D spending, which has doubled, demonstrating a strong commitment to fostering innovation and progress.

Key Drivers of R&D Growth

Government Initiatives: The government has launched several initiatives to promote R&D, such as the Science, Technology, and Innovation Policy (STIP) 2020, which aims to promote innovation and entrepreneurship.

Increased Funding: The government has increased funding for R&D activities, with a focus on areas like healthcare, energy, and environmental sustainability.

Public-Private Partnerships: Public-private partnerships have played a crucial role in promoting R&D, with industries collaborating with research institutions to develop new technologies and innovative solutions.

Impact of R&D Growth

Fostering Innovation: Increased R&D spending has fostered a culture of innovation, driving economic growth and improving lives.

Enhancing Competitiveness: India's increased focus on R&D has enhanced its global competitiveness, attracting foreign investment and promoting entrepreneurship.

Addressing Societal Challenges: Research investments have helped address pressing societal challenges, such as healthcare, energy, and environmental sustainability.

Creating Jobs: R&D activities have created new job opportunities, both in the research sector and in industries that have benefited from innovative solutions.

Seamless Transitions from Labs to Industries

Technology Transfer Offices: The government has established technology transfer offices to facilitate the transfer of technologies from research institutions to industries.

Incubators and Accelerators: Incubators and accelerators have been set up to support startups and entrepreneurs in commercializing innovative solutions.

Industry-Academia Partnerships: Industry-Academia partnerships have been fostered to promote collaborative research and development.

Future Outlook

Continued Investment in R&D: The government plans to continue investing in R&D activities, with a focus on emerging areas like artificial intelligence, blockchain, and cybersecurity.

Promoting Entrepreneurship: Efforts will be made to promote entrepreneurship and innovation, with a focus on creating jobs and driving economic growth.

Addressing Global Challenges: India's R&D efforts will focus on addressing global challenges, such as climate change, healthcare, and sustainable development.

India's finance ministry reports that 1.14 lakh startups create over 12 lakh jobs

 OVERVIEW

As of October 2023, 1.14 lakh government-recognized startups under "Startup India" generated over 12 lakh jobs, according to the Department of Economic Affairs.

As to the Department's report, up to November 2023, 2.1 lakh loans were given under the Startup India initiative.

As to the state-sponsored ONDC, the platform recorded over 63 lakh transactions through November 2023.

According to a Ministry of Finance report, the Indian government-approved startups have generated over 12 lakh new jobs. 

The 1.14 lakh firms that the government recognized under the Startup India initiative created more than 12 lakh jobs as of October 2023, according to the Department of Economic Affairs' study, "The Indian Economy: A Review January 2024," which covered data up to the end of October 2023. 

The report, which praised the Center's startup effort, added that up till November of last year, 2.1 lakh loans had been issued under the program. Eighty-four percent of these loans were approved for the nation's female entrepreneurs. 

The report emphasized that in order to support the growing domestic startup ecosystem, the Center has implemented a number of regulatory reforms, such as decriminalizing 3,600 compliances and enhancing the simplicity of doing business. 

As to the Open Network for Digital Commerce (ONDC), which is supported by the state, the platform recorded over 63 lakh transactions until November 2023. 

The report additionally included about artificial intelligence (AI) in the midst of the continuous discussion about developing technologies. It claimed that governments around the world face significant challenges as a result of AI, particularly in light of its effects on employment. 

Based on the concerns it raises about employment, especially in the services sector, the emergence of artificial intelligence (AI) presents a significant challenge to governments worldwide. This was recently uncovered in an IMF report that estimated 40% of jobs worldwide are impacted by AI, with the advantages of complementarity functioning alongside the potential for displacement, the report stated. 

It is essential to remember that in 2023, Indian digital firms directly employed over 10.34 lakh people, according to a recent report by the World Economic Forum. It also stated that in the upcoming years, this figure is anticipated to increase.

Thanks to smartphones and reasonably priced internet, the Indian digital economy has grown tenfold in the last ten years. With over 931 million smartphone users, this digital drive has fueled the nation's rapidly growing startup scene. 

However, the extended financial cold is currently having an awful impact on the Indian startup environment. As a result, funding in 2023 fell to levels seen before to 2017. Just $10 billion was raised by Indian companies last year, compared to $25 billion in 2022 and $42 billion in 2021. Nonetheless, industry participants predict a turnaround in the funding amount by the second half of 2024, suggesting that signs of resuscitation are likely.

The Modi government's policies are making India a hub for innovation

Modi Govt's reforms are indeed transforming India into an innovation hub. The government's initiatives, such as StartUp India, have fostered a culture of entrepreneurship and innovation, leading to a significant increase in patent registrations.

The focus on youth leadership has also been a key driver of this growth, as young Indians are being empowered to take charge of their own destiny and create innovative solutions to real-world problems.

Some notable initiatives that have contributed to this growth include:

Startup India Seed Fund Scheme: Provides financial assistance to selected startups and incubators across five years, starting in 2021.

ATAL Innovation Mission: Encourages a culture of innovation and entrepreneurship throughout the country, with a focus on developing a problem-solving, inventive attitude in schools and universities.

SAMRIDH Scheme: Aims to provide cash support to startups and assist them in bringing together skill sets that would enable them to expand successfully.

These initiatives have created a fertile ground for innovation and entrepreneurship to flourish, and India is well on its way to becoming a global innovation hub.

India's Q3 GDP Growth: 6.2% in FY25

The Indian economy's 6.2% growth in the third quarter of FY25 is a testament to the country's robust macroeconomic fundamentals. Let's break down the key factors that contributed to this growth:

Key Drivers of Growth

1. Private Consumption: Private final consumption expenditure (PFCE) grew by 6.9% annually in the December quarter, up from 5.9% in the previous quarter. This increase in consumer spending was driven by factors like festive demand, improved disposable incomes, and a decrease in inflation.

2. Government Spending: Government final consumption expenditure (GFCE) showed strong growth at 8.3% in Q3, up from 3.8% in Q1. This increase in government spending was driven by investments in infrastructure, defense, and social welfare programs.

3. Manufacturing Sector: The manufacturing sector accelerated to 7% growth in the first quarter of FY25, compared to 5% a year ago. This growth was driven by increased demand for consumer goods, improved capacity utilization, and investments in new technologies.

4. Agricultural Sector: The agricultural sector grew by 4.6% in the third quarter of FY25, driven by a good monsoon season, improved crop yields, and increased government support for farmers.

Macroeconomic Fundamentals

1. Stable Inflation: The RBI's efforts to control inflation have been successful, with food inflation expected to soften due to good monsoons and a favorable rabi season output.

2. Fiscal Consolidation: The government has maintained its commitment to fiscal consolidation, with a fiscal deficit target of 4.9% of GDP and capital expenditure at 2.4% of GDP during 2024-25.

3. Monetary Policy: The RBI has maintained an accommodative monetary policy stance, with interest rates remaining low to support economic growth.

4. External Sector: India's external sector has remained stable, with a current account deficit of 1.2% of GDP in the third quarter of FY25.

Outlook

1. GDP Growth Projections: The World Bank has raised India's FY25 GDP growth forecast to 7% from 6.6% earlier.

2. Medium-term Outlook: The medium-term outlook for India's economy remains positive, with GDP growth projections of 6.7% for FY26 and FY27.

3. Challenges Ahead: Despite the positive outlook, India's economy faces challenges like a potential global economic slowdown, rising crude oil prices, and the need to address structural issues like labor market reforms and infrastructure development.

India's 6.2% growth in the third quarter of FY25 is a result of the country's robust macroeconomic fundamentals, driven by private consumption, government spending, and a resilient manufacturing sector. While challenges lie ahead, the medium-term outlook for India's economy remains positive.