A significant percentage of companies in <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> believe the advent of 5G will herald a transformative era in the world of work, unlocking a wealth of opportunities for India's tech talent pool, says a report. According to the report by staffing company <keyword id="6381892" type="General" weightage="80" keywordseo="teamlease-services" source="Orion">TeamLease Services</keyword>, over 80 per cent of respondents believe that IT and banking and <keyword id="6354241" type="General" weightage="50" keywordseo="financial-services" source="Orion">Financial Services</keyword> will benefit from the 5G technology in terms of job creation and upskilling. The report titled "India's 5G rollout: Revolutionising the People Supply Chain" is based on responses of over 247 companies on the impact of 5G on the ecosystem and employment generation. "With substantial investments, such as the PLI scheme allocating Rs 12,000 crore to the telecom sector, with approximately 25 per cent dedicated to creating new jobs, we are poised for a positive outlook on job creation and upskilling," TeamLease Services CEO - Staffing, Kartik <keyword id="6386349" type="General" weightage="80" keywordseo="narayan" source="Orion">Narayan</keyword> said. This will boost confidence to harness the potential of 5G, creating unprecedented job opportunities, driving innovation and shaping a transformative future, he added. The adoption of 5G will have significant impact on industries such as <keyword id="6356925" type="General" weightage="50" keywordseo="bfsi" source="Orion">BFSI</keyword> (60 per cent), education (48 per cent), gaming (48 per cent) and retail and e-commerce (46 per cent), the report said. On a year-on-year basis, 46 per cent of participants anticipate job creation ranging from 61 per cent to 80 per cent within the first year of 5G implementation. "Telecommunications companies embracing 5G solutions present a promising growth opportunity. As telcos leverage the potential of 5G in network upgradation, migration, IoT/IIoT, mobility, network infrastructure, and network security, we anticipate increased hiring for specialised roles," Narayan said. This advancement creates new opportunities and drives demand for roles such as technical content writers, networking engineers, AI/ML professionals, UX designers, cloud computing engineers, cybersecurity specialists, data science and analytical experts and more, he added. The report, however, noted that the telecom industry is facing a considerable demand-supply gap of 28 per cent, which emphasises the urgent need for comprehensive upskilling and reskilling initiatives. Encouragingly, 88 per cent of employees expressed a preference for upskilling, indicating a strong desire to enhance their existing skill sets, the report said. Additionally, 11.2 per cent of employees showed a preference for reskilling, presenting significant opportunities in the job market for fresh talent, it added. The report also highlighted the impact of 5G on job creation over the next few years, with 41 per cent of respondents expecting an impact of more than 80 per cent on job creation over the next three years of 5G rollout. According to Narayan the impending 5G rollout is expected to lead to an 80 per cent increase in tech-related jobs. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/ev-stocks-on-the-radar-these-five-rode-the-electric-vehicle-rally-in-the-last-year/slidelist/101011986.cms">EV stocks on the radar – These five rode the electric vehicle rally in the last year</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/google-bard-cool-things-you-can-do-with-the-ai-chatbot/articleshow/101012445.cms">Google Bard: Cool things you can do with the AI chatbot</a>

5G adoption to unlock wealth of opportunities for India's tech talent pool: TeamLease

As many as 1,84,399 Gram Panchayats in the country have been made service-ready with broadband infrastructure under <keyword id="2791195" type="General" weightage="100" keywordseo="bharatnet" source="Orion">BharatNet</keyword>, as on November 28, 2022, <keyword id="6354721" type="General" weightage="50" keywordseo="parliament" source="Orion">Parliament</keyword> was informed on Wednesday. BharatNet project is being implemented in all the Gram Panchayats (GPs) and villages of the country to provide high-speed internet and broadband, Minister of State for Communications Devusinh Chauhan said in a written reply in <keyword id="6355187" type="General" weightage="50" keywordseo="lok-sabha" source="Orion">Lok Sabha</keyword>. "As on 28.11.2022, a total of 1,84,399 Gram Panchayats have been made service ready in the country with broadband infrastructure under BharatNet," the minister said in reply to a question on high speed internet. To another question on Wi-Fi hotspots, the minister mentioned that the scope of BharatNet project has recently been extended up to all inhabited villages beyond GPs. "Under this project, last mile connectivity is provided through Fibre to the <keyword id="6363870" type="General" weightage="50" keywordseo="home" source="Orion">Home</keyword> connections, Wi-Fi Access Points, internet facility to Government institutions among others. As on date Wi-Fi access points have been installed in 1,04,664 GPs," Chauhan informed. The proliferation of broadband through public Wi-Fi networks is also being done through the Prime Minister Wireless Access Network Interface (PM-WANI) framework. To another question, the minister said applications were invited from June 4, 2021 to July 3, 2021, under the <keyword id="8870884" type="General" weightage="50" keywordseo="production-linked-incentive" source="Orion">Production Linked Incentive</keyword> (PLI) Scheme to promote telecom and networking products. He said that 31 eligible applications were approved on October 14, 2021. Further, for including design-led manufacturing, the scheme guidelines were amended on June 20, 2022. "Applications were invited from June 21, 2022 to August 25,2022. 14 existing companies continued with existing sanctioned incentives," Chauhan said. There were 32 applications and 28 eligible applications were approved on October 31, 2022. Based on their eligibility, presently there are total 42 companies approved under PLI scheme," he said. Of 42 companies, 17 firms are with design-led manufacturing products. "These 42 companies have committed investment of Rs 4,115 crore, additional sales of Rs 2.45 lakh crore and will create employment of more than 44,000 over the scheme period," he said. The number of applicants indicate the response from industry for making India a global manufacturing hub for telecom and networking products, he pointed out. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/3-cases-of-omicron-subvariant-bf-7-driving-chinas-covid-surge-detected-in-india/articleshow/96397261.cms">3 cases of Omicron subvariant BF.7, driving China's Covid surge, detected in India</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/soon-no-need-to-take-out-electronic-devices-from-hand-baggage-for-scanning-at-airports/articleshow/96401171.cms">Soon, no need to take out electronic devices from hand baggage for scanning at airports</a>

1.84 lakh Gram Panchayats service-ready with broadband infra under BharatNet: Govt

<ul><li>The shipments of “Made in India” smartphones have declined by 8% in Q3 2022.</li><li>The shipments have primarily declined due to a decline in consumer demand amid negative macroeconomic indicators.</li><li><keyword id="1731609" type="General" weightage="80" keywordseo="oppo" source="Orion">Oppo</keyword>, Samsung, and Vivo top the list in shipments of “Made in India” smartphones.</li></ul>In a first this year, “Made in India” smartphone shipments reported a decline in Q3 (July to September) 2022. According to a report by Counterpoint Research, domestic shipments of smartphones reported a decline of 8% in Q3 2022 on a year-on-year basis. The domestic shipments of smartphones declined to 52 million units in Q3 2022. The decline has been attributed to a decrease in consumer demand due to economic headwinds and geopolitical market uncertainties, such as the ongoing Russia-Ukraine war. <cmsannotation type="cmsannotation" annotationid="Reasons for decline" comment="subhead" text="Reasons for decline">Reasons for decline</cmsannotation> “The Made in India smartphone shipments declined in Q3 2022 as compared to Q3 2021. Two major forces impacted the growth of such smartphone shipments,” said Prachir Singh, senior analyst of Counterpoint Research. The primary reason Singh gives is the decline in consumer demand, especially in the entry-level segment, due to adverse macroeconomic indicators. The second reason was the remaining inventory at the start of the quarter, which impacted manufacturing. <cmsannotation type="cmsannotation" annotationid="Oppo continues to dominate" comment="subhead" text="Oppo continues to dominate">Oppo continues to dominate</cmsannotation> Chinese smartphone maker Oppo continues to dominate the shipments of domestically produced smartphones. The company’s share in domestic shipments has increased from 20% in Q3 2021 to 23.8% in Q3 2022. It is to be noted that Oppo’s shipments include <keyword id="2210217" type="General" weightage="50" keywordseo="oneplus" source="Orion">OnePlus</keyword>, Realme, and Oppo smartphones, as the company manufactures smartphones for all three companies in India. <cmsannotation type="cmsannotation" annotationid="Samsung takes the second spot" comment="subhead" text="Samsung takes the second spot">Samsung takes the second spot</cmsannotation> Samsung, which sells smartphones across various segments, occupies the second spot with a 20.7% share in domestic shipments in Q3 2022, up from 16.3% in Q3 2021. In addition, Dixon Technologies, which manufactures smartphones for Samsung, is in the fifth position with a share of 7.8%. <cmsannotation type="cmsannotation" annotationid="Outlook remains positive" comment="subhead" text="Outlook remains positive">Outlook remains positive</cmsannotation> Despite the decline, the future looks bright as the country’s manufacturing ecosystem continues to grow, as 63% of shipments have come from in-house manufacturers while the share of electronics manufacturing services (EMS) companies has been limited to 37%. This includes 8.5% held by Bharat FIH, which manufactures smartphones for <keyword id="874458" type="General" weightage="50" keywordseo="xiaomi" source="Orion">Xiaomi</keyword>, and 7.8% share held by Dixon Technologies, which manufactures smartphones for Samsung. Singh also expects an uptick in local production due to the Indian government’s production-linked incentive (PLI) scheme and partnerships between Indian and foreign companies. “Further, we will continue to see PLI disbursements in subsequent quarters, which will add to the local manufacturing landscape. Overall, the manufacturing trend is witnessing an upward trajectory with multiple partnerships happening in recent months, like the ones between Tata Group and Wistron and between Foxconn and Vedanta,” said Singh. In addition, the Indian government is also working on increasing the local value addition in the smartphone industry. “The government is actively pursuing the target of expanding the local value addition from the present 17-18% to 25% in the near future,” said Priya Joseph, research analyst, Counterpoint. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/upcoming-new-apple-iphone-in-2023/articleshow/96242473.cms">The iPhone 15 series is expected to feature a USB Type-C port, A17 chipset and a revamped design</a> <a href="https://www.businessinsider.in/tech/mobile/news/upcoming-new-mobile-phones-in-2023/articleshow/96368241.cms">Top smartphones to look forward to in 2023</a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-continues-to-lead-the-telecom-industry-as-its-active-subscribers-increase-by-4-9-million/articleshow/96395806.cms">Reliance Jio continues to lead the telecom industry as its active subscribers increase by 4.9 million</a>

Made in India smartphone shipments decline by 8% as consumer demand declines: Counterpoint

<ul><li><keyword id="6354321" type="General" weightage="100" keywordseo="bengaluru" source="Orion">Bengaluru</keyword> tops the list with the highest hiring sentiment in the services sector, <keyword id="6358070" type="General" weightage="80" keywordseo="mumbai" source="Orion">Mumbai</keyword> tops the list in the manufacturing sector. </li><li>The recovery from Covid-19 pandemic and government initiatives is believed to have fueled growth in companies across sectors.</li><li>Tier-1 cities have the highest hiring intent but Tier-2 cities are not far behind.</li></ul>Bengaluru and Mumbai emerged as sunshine locations for hiring in India in the fourth quarter of FY23. This has reportedly been fueled by the recovery from the Covid-19 pandemic and initiatives by the government, says a <keyword id="133742" type="General" weightage="20" keywordseo="teamlease" source="Orion">Teamlease</keyword> report. According to the TeamLease Employment Outlook Report for Q4, Bengaluru and Mumbai have emerged as the cities with the highest hiring sentiment in the services and manufacturing sectors respectively. “Surplus public investment in PLI schemes, the Indian Government's asset monetization programme, increased private participation in key sectors, and the revisions in FDI laws in the defence and telecom sectors has fueled growth in companies across sectors, especially in Tier 1 and Tier 2 locations. Companies are therefore shoring up their talent pool to meet their increasing requirements,” said Kartik Narayan, chief executive officer, TeamLease Services. TeamLease Services is one of the country’s leading human resource companies and offers its services to over 3,500 employers. In the services sector, Bengaluru tops the list with 97% of employers expressing a higher hiring interest, followed by Chennai with 94%, Delhi with 90%, Hyderabad with 86% and Mumbai with 85%. When it comes to the manufacturing sector, Mumbai tops the list with 97% of employers expressing a higher hiring sentiment, followed by Bengaluru with 94%, Chennai with 89%, Delhi with 84% and Pune with 73%. Bengaluru has shown the highest hiring intent, emerging as one of the top-two cities in both the sectors. Bengaluru and Mumbai have emerged as ‘sweet spots’ from a holistic perspective across sectors. Experts are also optimistic about the hiring outlook for the next quarter. “The positive hiring outlook will likely continue in the next quarter as well,” Narayan added. <cmsannotation type="cmsannotation" annotationid="Tier-1 cities express highest hiring intent" comment="subhead" text="Tier-1 cities express highest hiring intent">Tier-1 cities express highest hiring intent</cmsannotation> The report has stated that while Tier-1 cities have emerged on top with the highest hiring intent across both sectors, Tier-2 cities are not far behind with nearly 75% of employers indicating a positive sentiment. However, Tier-3 cities and rural areas are lagging behind with just 46% and 24% of employers expressing a hiring intent, respectively. In the services sector, e-commerce and allied startups have the highest hiring intent at 98%, followed by telecommunications at 94% and educational services at 93%. On the other hand, healthcare and pharmaceuticals dominate the list in the manufacturing sector with a 98% hiring intent, followed by FMCG at 86% and electric vehicle (EV) and infrastructure industry at 71%. "India’s GDP vision and multiple domestic focused initiatives has provided the much-needed impetus to the industry post the pandemic. This in turn has given a fillip to employment generation; improving the intent to hire across sectors, locations and industries. 60% employers in manufacturing and 77% in services, inclining to hire more, is a testament to the growing opportunities in the ecosystem,” said Mayur Taday, chief business officer, TeamLease Services. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/ola-s1-pro-move-os-3-review-proximity-unlock-calling-support-hypercharging-support-and-more/articleshow/97806031.cms">Ola S1 Pro Move OS 3 review – proximity unlock, calling support, hypercharging support, and more</a> <a href="https://www.businessinsider.in/tech/mobile/news/xiaomi-13-pro-with-leica-powered-camera-to-launch-in-india-on-february-26-heres-how-its-camera-was-made/articleshow/97765165.cms">Xiaomi 13 Pro with Leica-powered camera to launch in India on February 26 — here’s how its camera was made</a> <a href="https://www.businessinsider.in/tech/news/twitter-blue-launched-in-india-pricing-what-it-offers-and-should-you-subscribe/articleshow/97756303.cms">Twitter Blue launched in India – pricing, what it offers, and should you subscribe?</a>

Bengaluru, Mumbai sunshine locations for hiring in Q4: Teamlease report

<ul><li>The Indian stock markets could open on a flat note on September 16 after hitting new highs on the previous day.</li><li>Trends on SGX <keyword id="6354813" type="General" weightage="20" keywordseo="nifty" source="Orion">Nifty</keyword> showed a decline of 3 points, suggesting that Nifty could have a tepid opening amid mixed cues in other Asian markets.</li><li>Telecom, Auto and Tata group could be among the top stocks to watch out for on September 16.</li></ul><cmsannotation type="cmsannotation" annotationid="Telecom stocks" comment="subhead" text="Telecom stocks">Telecom stocks</cmsannotation> The government’s highly-awaited <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">telecom relief package</a> is finally here, offering a four-year moratorium on AGR and spectrum dues. Vodafone Idea and Airtel to benefit the most, but analysts are divided on whether this is enough to help Vodafone Idea survive. <cmsannotation type="cmsannotation" annotationid="Auto stocks" comment="subhead" text="Auto stocks">Auto stocks</cmsannotation> The Indian government <a href="https://www.businessinsider.in/business/news/government-approves-26058-crore-pli-scheme-for-auto-and-drone-industries/articleshow/86228285.cms">announced</a> a production-linked incentive scheme worth ₹26,000 crore for auto and auto component makers. The focus will be on promoting hydrogen fuel vehicles and electric vehicles. <cmsannotation type="cmsannotation" annotationid="Tata group" comment="subhead" text="Tata group">Tata group</cmsannotation> Has <a href="https://www.businessinsider.in/business/news/tata-sons-submits-financial-bid-for-air-india-spicejets-ajay-singh-still-in-the-race/articleshow/86230882.cms">submitted</a> a bid for Air India. Tata Sons’ chairman N Chandrasekaran also rejected news reports that the company is considering a revamp of its leadership structure. <cmsannotation type="cmsannotation" annotationid="SpiceJet" comment="subhead" text="SpiceJet">SpiceJet</cmsannotation> The airline’s owner Ajay Singh has also submitted a bid for Air India, according to media reports. <cmsannotation type="cmsannotation" annotationid="Wipro" comment="subhead" text="Wipro">Wipro</cmsannotation> Bagged a multi-year IT managed services contract from the Kuala Lumpur-based Maxis Broadband. <cmsannotation type="cmsannotation" annotationid="Zee Entertainment" comment="subhead" text="Zee Entertainment">Zee Entertainment</cmsannotation> Rated ‘Underweight’ by JP Morgan, with a price target of ₹320. After <a href="https://www.businessinsider.in/stock-market/news/zee-entertainment-shares-hits-upper-circuit-after-two-independent-directors-resign-on-investors-demand/articleshow/86189814.cms">rallying</a> 40% on Tuesday, Zee Entertainment’s stock ended slightly in the negative yesterday. <cmsannotation type="cmsannotation" annotationid="IPO Watch" comment="subhead" text="IPO Watch">IPO Watch</cmsannotation> <a href="https://www.businessinsider.in/stock-market/news/sansera-engineering-ipo-most-likely-to-open-on-september-14/articleshow/86012856.cms">Sansera Engineering IPO</a> fully subscribed on Day 2. Today is the last day to subscribe to the IPO. <cmsannotation type="cmsannotation" annotationid="HG Infra Engineering" comment="subhead" text="HG Infra Engineering">HG Infra Engineering</cmsannotation> Bagged two projects from the National Highways Authority of India, and was declared as the lower bidder for a ₹448 crore project in Rajasthan. <cmsannotation type="cmsannotation" annotationid="CEAT" comment="subhead" text="CEAT">CEAT</cmsannotation> Received shareholder approval to issue ₹500 crore worth non-convertible debentures. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">Indian government dials M for moratorium – Airtel, Vodafone Idea get a four-year relief on AGR dues</a> <a href="https://www.businessinsider.in/business/news/tata-sons-submits-financial-bid-for-air-india-spicejets-ajay-singh-still-in-the-race/articleshow/86230882.cms">Tata Sons submits financial bid for Air India, SpiceJet's Ajay Singh still in the race</a> <a href="https://www.businessinsider.in/business/news/government-approves-26058-crore-pli-scheme-for-auto-and-drone-industries/articleshow/86228285.cms">Government approves ₹26,058 crore PLI scheme for auto and drone industries</a>

Airtel, Vodafone Idea, Tata group and other top stocks to watch out for on September 16

Soaring requirement for electric vehicles as well as energy storage applications in India are necessary drivers for the government of India to commit to serious investment in lithium-ion battery manufacturing in Budget 2022-23, finds a new report from JMK Research and the Institute for Energy Economics and Financial Analysis (IEEFA). India's transition to a future powered by clean, affordable, and reliable <keyword id="34553" type="General" weightage="20" keywordseo="renewable-energy" source="Orion">renewable energy</keyword> is underway, yet critical battery storage is still an expensive imported technology. Report co-author Vibhuti Garg told IANS battery storage can help India transition by storing excess renewable energy when it is not needed and then discharging it when it is. "In addition, batteries can also provide essential grid services," says Vibhuti. "In Budget 2022-23, the government must offer essential funding for domestic manufacturing of lithium-ion batteries (LiB) as well as, for instance, offering duty rebates in sourcing the raw materials for LiB manufacturing." India is expected to be the world's largest automotive market by 2026. The report finds automotive applications will account for 90 per cent of LiB demand, with annual capacity growing nearly 50-fold -- from 2.3 gigawatt hours (GWh) in financial year (FY) 2021 to 104GWh by FY 2030. The growth for non-automotive applications is almost as spectacular, from 0.3GWh to 12GWh in the same period, applied to telecom towers, data centres, grid-scale renewable energy integration, and rooftop solar, as well as newer areas, including material handling and power tools. The second phase of the Faster Adoption and Manufacturing of Hybrid and EV scheme (FAME-II), which aims to increase adoption of EVs and specifically electric two- and three-wheelers, is driving battery localization requirements and the setting up of battery assembly plants in India. The PLI Advanced Chemistry Cell (ACC) scheme is a step towards local cell manufacturing. Furthermore, the government's renewable energy targets will make stationary storage a significant contributor to this growth, says co-author of the report, Jyoti Gulia. "Adding 450 gigawatts of renewables by 2030 will need 136 gigawatt hours of battery storage. India is poised to become a key LiB consumer," she says. The report also highlights the challenges for battery pack and cell manufacturing in India, primarily the reliance on imports for key raw materials, the lack of safety standards in place, and the dearth of local technological know-how. "End-use customers are wary of the quality of local assemblers' packs, battery management systems (BMS), and the associated safety issues. There are lucrative opportunities, but current and potential players must be prepared for massive investments and low profit margins," says co-author, Neha Gupta. LiB technology has superseded lead-acid batteries in mobile and stationary applications alike, its growth encouraged in part by government of India support allowing 100 per cent foreign direct investment (FDI) and mandating domestic manufacture of battery packs. The government further boosted manufacturing via the Production-Linked Incentive (PLI) scheme, as part of which, investments of over Rs 450,000 m ($6,120 m) for 50GWh of capacity is planned. India has huge cost opportunities in terms of cheap labour and power. Cell manufacturing costs in India, as of 2020, were the lowest ($92.8/kWh) when compared with the US, European nations, and even China ($98.2/kWh) and South Korea ($98.1/kWh). Because of the lack of availability of key minerals and metals in India, the report also suggests battery recycling as a solution to meet surging LiB demand, recovering 80-90 per cent of lithium, cobalt, nickel, manganese and graphite and putting India on the path to a circular economy. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/railways-stocks-rally-on-expectation-of-strong-budget-allocation-to-the-sector/articleshow/89173796.cms">Railway stocks have been buzzing for the last one month on expectation of significant budget allocation</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/the-indian-government-has-spent-less-than-half-the-money-it-had-budgeted-for-capital-investments-so-far/articleshow/88852518.cms">The Indian government has spent less than half the money it had budgeted for capital investments, so far</a>

Budget 2022 needs to maximise on lithium-ion battery manufacturing for rising EV demand

<ul><li>The government has set October 29 as the deadline for opting for adjusted gross revenue (AGR) dues moratorium.</li><li>The moratorium offers a time-freeze of four years from making payments for AGR dues.</li><li>The government has also given 90 days to telcos to decide if they wish to convert the accrued interest into equity.</li></ul>The Indian government had announced a moratorium of four years to telcos for making payments towards their adjusted gross revenue (AGR) dues as part of the <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">telecom relief package</a> last month. Now, Airtel, Vodafone Idea and Reliance Jio have been given a <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/govt-gives-telcos-till-oct-29-on-opting-for-payments-moratorium-90-days-for-equity-conversion/articleshow/87106427.cms">deadline</a> of October 29 to decide if they wish to opt for the payment moratorium. Additionally, the telcos have been given 90 days to respond whether they wish to convert the accrued interest into equity. As per the media report, the deadline was intimated to the three telcos in a letter sent by the Ministry of Finance on Friday. As per a senior government official, companies that opt for the moratorium will have to provide their historical audited financial statements. Additionally, listed companies would also be required to provide their historical share value. <cmsannotation type="cmsannotation" annotationid="What are the benefits of the moratorium?" comment="subhead" text="What are the benefits of the moratorium?">What are the benefits of the moratorium?</cmsannotation> The companies who avail the moratorium facility will have to pay interest on the amount and period of moratorium, since the government would have to protect its revenue. Both banks and telcos will benefit from de-stressed balance sheets thanks to this relief measure. Apart from this, the government has announced that instead of compounding interest on spectrum dues on a monthly basis, it will now do so on an annual basis. This should drastically reduce the impact of compounding and offer major relief to telecom players who have to pay AGR and spectrum dues. <cmsannotation type="cmsannotation" annotationid="What is AGR?" comment="subhead" text="What is AGR?">What is AGR?</cmsannotation> In 1999, the government and telecom operators shifted to a revenue-sharing fee model that requires them to share a part of their adjusted gross revenue (AGR) with the government as annual licence fee and spectrum usage charges. AGR is defined in the license agreements entered between the Department of Telecommunications (DoT) and the telecom operators. Here’s how much Vodafone Idea and Airtel owe the government in the form of AGR dues: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Total AGR demand (in crore) </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">AGR dues paid (in crore) </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Balance AGR dues (in crore) </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Vodafone Idea </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹58,254 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹7,854 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹50,339 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Airtel </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹43,980 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹18,004 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹25,976 </td></tr></tbody><tbody></tbody></table> Source: AGR dues case in the Supreme Court SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/airtel-vodafone-idea-shares-jump-after-government-proposes-to-withdraw-13000-crore-demand-for-spectrum-usage-charges/articleshow/86775903.cms">Airtel, Vodafone Idea shares jump after government proposes to withdraw ₹13,000 crore demand for spectrum usage charges</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-and-airtel-need-tariff-hikes-agr-moratorium-might-not-be-enough-say-analysts/articleshow/86285450.cms">Vodafone Idea and Airtel need tariff hikes, AGR moratorium might not be enough, say analysts</a> <a href="https://www.businessinsider.in/business/telecom/news/nokia-foxconn-among-global-firms-to-benefit-from-indias-telecom-pli-scheme-of-3345-crore/articleshow/87017211.cms">Nokia, Foxconn among global firms to benefit from India's telecom PLI scheme of ₹3,345 crore</a>

Airtel, Vodafone Idea and Reliance Jio have till October 29 to opt for the AGR dues moratorium

<ul><li>India poised to have 1 billion smartphone users by 2026 and will be the second-largest smartphone manufacturer in the next five years.</li><li>India to catch on to the <keyword id="13228644" type="General" weightage="20" keywordseo="global-Non-fungible-Tokens" source="Orion">global Non-fungible Tokens</keyword> (NFTs) revolution with favourable regulations.</li><li>The AI market to grow at a CAGR of 20.2 percent globally to reach US$7.8 billion by 2025; AI to have a promising future in India.</li></ul> Favourable policies, convenience-driven mindset, and evolution of the new normal have brought in a renewed focus on tech adoption. Smartphones now act as a catalyst for digital penetration across the tier-2 and 3 markets in India. The India edition of Deloitte’s 2022 Global TMT (Technology, Media, and Entertainment, Telecom) predictions indicates that digital and mobile are the key enablers of the future of technology. This edition captures the latest trends in the Indian TMT space that are driven by the economic and societal shifts caused by the global pandemic. These trends are poised to result in a better-connected ecosystem of multiple digital devices that can meet the world's ever-increasing need for faster connectivity, and more chips and entertainment options. Moreover, an evolving marketplace for NFT, increasing diversity in talent and participation of women in the tech industry, and rising popularity of AI and app-centric approach to promote mental health and wellness indicate enhanced digital maturity for businesses. Technology sector prediction - The urgency to address semiconductor chips shortage The global shortage of semiconductor chips has affected the manufacturing industries across the world. As demand soars, supply is likely to be constrained in the near term, but gradually ease up in 2023. With an increase in supply and normalisation of demand, and the specific initiatives muted by GOI, India can play on the strength of its large and thriving domestic market to form a basis for setting up the domestic semiconductor and electronics manufacturing industries in the next three-five years. “As the ecosystem matures in the medium to long term, we expect India to emerge as a strong regional hub in semiconductor and electronics manufacturing”, said P. N. Sudarshan, Partner and TMT Industry Leader, Deloitte India. He added, “The government’s recent announcement on the Production Linked Incentive (PLI) scheme for the semiconductor and electronics manufacturing industries has the potential to create an end-to-end ecosystem for manufacturing electronic products. We expect the broader shift to digital to continue in 2022 and drive the industry growth in the future.” Telecom sector prediction: 1 billion smartphone users by 2026 In 2021, the Indian telecom sector has undergone major policy reforms to reset growth and revive the health of the operators. The total cumulative shipments of smartphones in the country are expected to reach 1.7 billion units from 2022 to 2026, creating a market of about US$250 billion. According to Deloitte’s analysis, smartphone demand in India will increase at a CAGR of 6 per cent in the rural market and at a CAGR OF 2.5 per cent in the urban market to reach a cumulative number of about 400 million units being sold in 2026. This is largely propelled by demand for internet services in the rural market with the adoption of E-learning, Fintech and E-health platforms. Internet enabled devices in the rural market will also get a push with the government’s plan to fiberize all villages by 2025 under the BharatNet program. 5G devices will alone contribute 80 percent (about 310 million devices) to smartphone demand by 2026. Furthermore, the recently announced incentive package of US$10 billion to drive semiconductor manufacturing in India and the PLI schemes will encourage handset manufacturing in India to service the second-largest smartphone market in the next five years. Peeyush Vaish, Partner and Telecom Sector Leader, Deloitte India, said “India will have 1 billion smartphone users by 2026. This growth will result in over 75 percent of the subscribers using smartphones by 2026 from a sub- seventy percent as on date. 5G enabled devices will contribute 80 percent to the devices being sold in the year 2026 and Indian consumers will purchase 840 million 5G smartphones over the next 5 years valued at US$130 billion. In addition, 5G will fuel an incremental sale of 135 million smartphone units over the next 5 years.” Media sector prediction: The Indian streaming industry to evolve dramatically Greater adoption by audiences, the popularity of international content (such as Korean, Israeli, or Spanish) in India, and the ability to attract a wider audience through subtitles and dubbed content, have broken previously held views on the characteristics of the Indian market. These trends have forced many streaming companies to revise their original strategies. Pricing for streaming services will remain competitive as service providers attempt to stabilise and consolidate their customer base. However, in a rapidly evolving market, streaming players would rather focus on customer acquisition instead of customer churn. As prices stabilise and content libraries become nuanced and structured, the focus will shift to the minimisation of churn. Jehil Thakkar, Partner, Media and Entertainment Sector Leader, Deloitte India, said “Evolving consumer behaviour in view of the pandemic has increased digital content consumption in India. Audiences are experimenting with genres and languages with regional content breaking out of its traditional boundaries. Fierce competition is likely to persist in the short-to-medium term with more than 40 service providers in the fray.” This growth will be driven by heavy investment in original content, pricing innovations, low data costs, and the rise of short-form content. However, this progression from the early to mass stage might come at a cost to the broader media industry as subscribers, especially in tier-1 and tier-2 cities, may switch to more streaming content from traditional linear TV. We, however, do not expect India to cut the cord. Gaming and commerce are important elements contributing to attract, retain and amplify consumer stickiness as the battle within the evolving digital world continues. Other highlights in the Deloitte “TMT Predictions 2022” report India all set to catch on to the global NFT revolution; entertainment and sports NFTs will disrupt the industry in India: Deloitte Global predicts that NFTs for sports media will generate more than US$2 billion in transactions in 2022, about double the figure for 2021. Given the global trends and the government of India’s pending policy/regulatory framework in this area, it is a matter of time before NFT-based market for movies and sports memorabilia becomes a reality in India. The future of AI in India: More market players are realising AI’s importance, including its ability to provide competitive advantage and sculpt the future of work. In 2022, we expect to see India’s AI priorities shift towards cost efficiencies and employee productivity. Mental health becomes a priority with increasing app penetration: Given the challenges related to awareness, access, and capacity, technology can play a significant role in building scalable solutions that can help the population at large. About **36 percent of the Indian millennials have a fitness app installed on their phones and ~45 percent think leading a healthy life is essential. Floating Solar Photovoltaics (FSPVs) as a means for scaling solar PV deployment: FSPVs is expected to play an important role in paving the path for India’s energy sufficiency given the natural advantage of a vast coastline. With reduced crude prices and improved designs, Deloitte India predicts a significant rise taking place as both central and state government agencies might announce more floating solar projects. Deloitte India further estimates that the FSPV sector in India has a high potential to become self-sustainable largely due to the benefit of economies of scale as and when the tariff rate reduces over the next few years.

NFTs for sports media will generate more than $2 billion in transactions in 2022, about double the figure for 2021: Deloitte report

<ul><li>According to a report by BNP Paribas, 8% Indian households had an ACs in fiscal year 2020.</li><li>The cost of ACs and the energy they consume is the main reason why ACs are considered luxury items.</li><li>The increase in commodity inflation and high competition has been limiting the <keyword id="13221674" type="General" weightage="20" keywordseo="ac-companies" source="Orion">AC companies</keyword>’ ability to increase their margins.</li></ul>The business of selling air conditioners has still not reached its full potential as it continues to be a luxury item for most Indian households. Even though several large brands like Voltas, LG, Daikin, Hitachi, Blue Star and Lloyd have been selling ACs for the past five to seven decades, they have still not been able to enjoy higher margins from this about-to-boom segment. This year however may be a good one. The demand for air conditioners is expected to increase due to scorching heat across several parts of India, according to a report by international financial services company BNP Paribas. The mercury has crossed 45 degree celsius in several places and<a href="https://www.businessinsider.in/science/environment/news/what-happens-to-the-human-body-when-the-temperature-reaches-50-degree-celsius/articleshow/91589906.cms"> touched 49 degrees in Delhi</a>, so people have been rushing to buy ACs in order to keep themselves cool. “We estimate the Indian AC industry market size at ₹180 billion (₹18,000 crore) with a potential CAGR [compound annual growth rate] of 15% over FY21-25,” the report said. BNP Paribas noted that 8% of Indian households had an AC in 2020, with 7 million units being sold in the same year. This is quite low when compared with the fact that four in ten — or 42% — households across the world have an AC. <div type="image" title="Heatwave has turned ACs from a luxury to a necessity — but margins remain muted for the players" msid="91655539" hostid="261"></div> The cost of ACs and the energy they consume is the main reason why ACs are considered a luxury item — making it unaffordable for many Indian households. The increase in commodity prices is hurting the manufacturers even further. <cmsannotation type="cmsannotation" annotationid="High competition is limiting ACs companies in India" comment="subhead" text="High competition is limiting ACs companies in India">High competition is limiting ACs companies in India</cmsannotation> Covid-19, the resultant lockdown and the Russia-Ukraine conflict that followed have had a major impact on commodity prices. Even a bag of detergent now costs <a href="https://economictimes.indiatimes.com/news/economy/indicators/how-a-detergent-could-have-helped-rbi-act-swiftly-on-inflation/articleshow/91587940.cms">20% more </a>than last year, but FMCG companies have the option of increasing the price of their products and passing it on to the customers. <div type="image" title="Heatwave has turned ACs from a luxury to a necessity — but margins remain muted for the players" msid="91655586" hostid="261"></div> However, the same price increase has not been possible in the whitegoods space like ACs, refrigerators or washing machines because they are already expensive compared to other fans or coolers, and competition in the industry is extremely high. “Moreover, the Indian whitegoods industry is highly competitive, given the presence of large MNCs like Samsung, LG, Whirlpool, Haier, Daikin, Hitachi, etc. as well as strong Indian brands like Voltas, Lloyd (Havells brand), Blue Star, IFB to name a few. Such high competitive intensity also limits the ability to hike prices,” BNP Paribas said in its latest report. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change in gross margins (bps) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY2018 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY2020 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Blue Star </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(361) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(62) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(177) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Voltas </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(110) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(255) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">133 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(129) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Whirlpool </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(344) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(46) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">161 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(255) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Johnson Controls-Hitachi Air </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(10) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(70) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">83 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">94 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IFB Industries </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">178 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(247) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">187 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">74 </td></tr></tbody></table>Source: BNP Paribas, Company Data Note: BPS stands for Basis Points, which is a unit of measure to describe the percentage change in value. The top six companies in the whitegoods space include Voltas, LG, Daikin, Hitachi, Blue Star and Lloyd, which cumulatively controlled 70-75% of the market share by volume in the fiscal year 2020. “Over the long run, we expect the market to consolidate in favour of the top 4-5 companies,” BNP Paribas noted, citing the Production Linked Incentive Scheme (PLI) as one of the major reasons for this expected consolidation. <cmsannotation type="cmsannotation" annotationid="High price is not the only thing muting demand" comment="subhead" text="High price is not the only thing muting demand">High price is not the only thing muting demand</cmsannotation> The industry size of air conditioners in India is almost double that of fans, which have made a mark on 80% households in India, but still the margins continue to be low on this white commodity. One of the main reasons is that AC is a seasonal item and has higher inventory costs due to the volume of the product. <div type="image" title="Heatwave has turned ACs from a luxury to a necessity — but margins remain muted for the players" msid="91655604" hostid="261"></div> Secondly, the market has been affected since 2016 due to the disruptions such as demonetisation and introduction of goods and services tax (GST). The Covid-19 wave, which compelled people to stay at home for almost two years, also hindered the demand. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/itc-aditya-birla-fashion-lic-housing-finance-among-stocks-to-watch-out-for-on-may-19/slidelist/91653552.cms">ITC, Aditya Birla Fashion, LIC Housing Finance among stocks to watch out for on May 19</a> <a href="https://www.businessinsider.in/stock-market/news/delhivery-ipo-heres-how-you-can-check-the-allotment-status/articleshow/91650014.cms">Delhivery IPO: Here’s how you can check the allotment status</a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-vs-bharti-airtel-four-charts-to-showcase-how-indian-telecom-giants-faired-in-2022/slidelist/91640306.cms" data-type="tilCustomLink">Reliance Jio Vs Bharti Airtel — Four Charts That Showcase How The Indian Telecom Giants Faired In 2022 </a>

Heatwave has turned ACs from a luxury to a necessity — but margins remain muted for the players

New Delhi, June 11 (IANS) With a three-pronged strategy (restart, restore and resurgence), India can achieve $100 billion in mobile phones and nearly $40 billion in component exports by 2025, a new report said on Thursday. The strategy document titled "Mobile Manufacturing in a post-COVID-19 World" by industry body India Cellular and Electronics Association (ICEA) and consultancy major EY, offers a roadmap for the Indian industry to become a global supplier of mobile phones in a world where two countries -- China and Vietnam -- and five global companies dominate over 80 per cent of the world's export market. Nearly 198 countries import mobile phones, and till recently, only two countries -- China and Vietnam -- were among the exporters. India joined the ranks as a third with a modest $3 billion exports in 2019-20. It now aims to target the number two spot. "The mobile manufacturing and components sector is ready to lead India's post COVID-19 exit strategy. Production has restarted. We hope to hit 100% production by August," Pankaj Mohindroo, Chairman, ICEA, told reporters in a video call. India earlier this month launched three major schemes to boost manufacture of electronics in the country -- Production Linked Incentive Scheme (PLI) for large-scale electronics manufacturing, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme. The three schemes would entail an outlay of about Rs 50,000 crore. "As the PLI scheme kicks in, we plan to ramp up global exports from India. There isn't a moment left to waste," Mohindroo added. He said that the Indian mobile phone manufacturing industry is moving forward harmoniously. "There is no such this as a domestic lobby and an international lobby here...We cannot work only on the supposedly big Indian market. We will have to export," he said, adding that in the next four to five years the big global companies will be manufacturing in India for their global exports. ICEA represents mobile and component manufacturers such as Apple, Motorola, Xiaomi, Nokia, Foxconn, Wistron, Flextronics, Lava, Vivo and others. The plan prepared by ICEA and EY which aims at transforming mobile manufacturing and components into India's largest export within the next 3-4 years, aligns closely with the government's National Policy on Electronics (NPE-2019). "The introduction of the incentive schemes like PLI, SPECS and EMC will bring resurgence in the manufacturing environment and create a competitive global ecosystem for India to capture the global market share of mobile phones, parts and accessories," said Bipin Sapra, Indirect Tax Partner Telecom sector, EY India. The report also pointed out areas of improvement, such as the need to shift large-scale global value chains, reduce cost of inputs and the need to increase competitiveness by building a low-cost domestic ecosystem and seeking partnership with states to address India's disabilities. From just two mobile phone factories in 2014, India now has become the second largest mobile phone producer in the world, according to the IT Ministry. --IANS gb/na

India mobile handset industry can reach $100bn in exports by 2025: ICEA-EY

<ul><li>Empirical evidence shows that <keyword id="6354813" type="General" weightage="100" keywordseo="nifty" source="Orion">Nifty</keyword> has an 80% probability of closing in the green.</li><li>IIFL Securities expects foreign institutional investors to continue to be net buyers in the coming months as India continues to be an attractive investment destination.</li><li>Expects the Federal Reserve to reduce the pace of hikes in future, after a lower inflation print for the month of October. </li></ul>The Santa Claus rally has taken many by surprise, but research done by IIFL Securities shows that December, on an average, has given monthly returns of 3.2%. After selling India heavily to recover some of the losses made in China and Russia, foreign institutional investors are back as the new year is expected to see many developed economies slip into recession. Even though the Nifty at a multiple of 19.5x offers little upside, R Venkataraman, chairman of IIFL Securities, tells Malini Bhupta that India’s relatively superior investability will keep multiple premiums intact. Edited Excerpts: <cmsannotation type="cmsannotation" annotationid="As markets continue to hit new highs, what is the outlook for the rest of 2022?" comment="subhead" text="As markets continue to hit new highs, what is the outlook for the rest of 2022?">As markets continue to hit new highs, what is the outlook for the rest of 2022?</cmsannotation> Nifty has seen a sharp rally of ~13% since the beginning of October. The return seasonality trend of the last 20 years for the month of December based on empirical evidence shows that Nifty has an 80% probability of closing in the green. In this study, we also found that December has also given the highest average monthly gains of ~3.2%. Thus, we expect Nifty to end the December series on a positive note and even reach a target of 18,900-19,000. <cmsannotation type="cmsannotation" annotationid="Are foreign institutions back in India?" comment="subhead" text="Are foreign institutions back in India?">Are foreign institutions back in India?</cmsannotation> As we have been mentioning earlier, going back as early as July, FIIs (foreign institutional investors) &amp; FPIs (foreign portfolio investors) had been selling in India only due to them suffering huge losses in countries like Russia and China. FIIs have, since August, made a comeback in India and have invested ₹26,000 crore in the cash market. Even their speculative long positions in the index futures are significantly higher compared to their historical average. As India continues to be the largest investable market with other countries like the US and the EU feared to be in recession in 2023, China is under lockdowns and Russia continues to be at war. Thus, we expect the FIIs to continue to be net buyers in the coming months. <cmsannotation type="cmsannotation" annotationid="Many global investment banks have said while India’s long-term fundamentals are intact, near-term valuations are elevated?" comment="subhead" text="Many global investment banks have said while India’s long-term fundamentals are intact, near-term valuations are elevated?">Many global investment banks have said while India’s long-term fundamentals are intact, near-term valuations are elevated?</cmsannotation> Corporate India’s PAT (profit after tax, aggregated over ~31,500 companies, of which 80% are unlisted) has bounced back smartly to levels of ~5% of GDP in FY22 after bottoming out at 1.2% in FY20, following a decade-long profitability erosion phase. Also, a series of reforms/cleanups and inherent growth momentum makes for a favourable Indian growth outlook. However, global growth risks are all too real, given monetary winter setting in, and geopolitics worsening (Ukraine, Taiwan, chip wars), and earnings will see cuts globally. Nifty at 19.5x apparently offers little upside, but India’s relatively superior investability will keep multiple premiums intact. We expect domestic growth stories to outperform. <cmsannotation type="cmsannotation" annotationid="What about the Federal Reserve’s rate hike momentum? Do you see it slowing down?" comment="subhead" text="What about the Federal Reserve’s rate hike momentum? Do you see it slowing down?">What about the Federal Reserve’s rate hike momentum? Do you see it slowing down?</cmsannotation> Globally, the interest rate cycle is reaching its peak with the Federal Reserve indicating less aggressive rate hikes going forward. The aggressive rate hike cycle may see moderation, aided by a high base effect leading to inflation print being lower in the next few months. We expect the Fed to reduce the pace of future rate hikes after a lower inflation print for the month of October. <cmsannotation type="cmsannotation" annotationid="Economic growth is estimated to slow down sharply in 2022-23. Will that affect markets?" comment="subhead" text="Economic growth is estimated to slow down sharply in 2022-23. Will that affect markets?">Economic growth is estimated to slow down sharply in 2022-23. Will that affect markets?</cmsannotation> The economic growth is likely to slow down in 2023, due to a higher base effect. This will definitely have an impact on the market, but a long-term investor should look at it as a breather before the next move in the market. Capex cycles are global and to a large extent synchronous with commodity cycles. Global factors such as green energy investing, de-globalisation, and supply chain redundancy requirements can keep commodities and capex strong in the medium term. A capex cycle coupled with the Centre and States’ strong fiscal due to higher tax collection is likely to bode well for an expansionary period in the coming months. <cmsannotation type="cmsannotation" annotationid="What is your forecast for Sensex and Nifty50 in 2023?" comment="subhead" text="What is your forecast for Sensex and Nifty50 in 2023?">What is your forecast for <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> and <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> in 2023?</cmsannotation> Nifty50 is currently trading at a 1-y forward PE multiple of 22.4x and is now approaching the 1 Standard deviation from its mean of 18.9. If we cap the multiple near the +1SD of ~24x, we can expect Nifty to hit 20,000. However, an extraordinary upside is likely to be difficult as we have seen during the 2017 to 2020 phase that when the index approached the +1SD levels, the Nifty traded in a broad range with moderate returns. We expect the Nifty to continue to trade with a positive bias, but extraordinary returns are likely to be difficult. <cmsannotation type="cmsannotation" annotationid="What sectors appear suited to cope with the slowdown?" comment="subhead" text="What sectors appear suited to cope with the slowdown?">What sectors appear suited to cope with the slowdown?</cmsannotation> Listed developers seem to be on track to report 15-20% YoY pre-sales growth for FY23, based on the strong momentum in 2Q and 1HFY23. Developers have been able to largely pass on the input cost inflation; collections and OCF (operating cash flow) margins were healthy in 2Q. Net debt was flat QoQ, while borrowing costs went up marginally. Developers have, so far, not witnessed any meaningful impact on demand due to rising mortgage rates, though it remains the single most prominent concern among investors. We prefer real estate developers with high finished unsold inventories, high margins, and low leverage. <cmsannotation type="cmsannotation" annotationid="Financials have emerged as stars of Q2, do you expect the rally in bank stocks to continue?" comment="subhead" text="Financials have emerged as stars of Q2, do you expect the rally in bank stocks to continue?">Financials have emerged as stars of Q2, do you expect the rally in bank stocks to continue?</cmsannotation> Financial companies’ (banking, asset financiers, securities, MFs, diversified – listed &amp; unlisted) PAT as % of GDP was stable through the cycle at 1.3%-1.5% from FY06-15. During this period, corporate debt/GDP rose from 25% in FY05 to 41% in FY13 and stayed there for 3 yrs, before a deleveraging cycle in the last 5 years brought it back to ~32% (FY21). For the listed financials, provision and write-offs as % of PPOP (pre-provision operating profit) increased from 44% in FY15 to 102% in 2018-19. It has fallen back to ~47% in 2021-22 and accordingly, the PAT/GDP has risen again to 1.2% currently, from being negligible in 2017-18 and 2018-19. With most of the banking clean-up behind us, prospects of re-leveraging by non-finance companies coupled with rising rates should increase banking sector profitability going forward. <cmsannotation type="cmsannotation" annotationid="What about slow deposit growth? Is that likely to impair credit off take?" comment="subhead" text="What about slow deposit growth? Is that likely to impair credit off take?">What about slow deposit growth? Is that likely to impair credit off take?</cmsannotation> Yes. Slow deposit growth has been a concern. Credit growth has been robust, growing at 18%, while deposit growth has been in single digits, amidst the tightening of liquidity. The primary reason for this is that the loans linked to repo rates have increased by 190 basis points on par with the current rate hike cycle, but the deposit rates haven’t gone up. Hence, although the deposit growth has improved Q-o-Q, on a Y-o-Y basis, (it) has remained moderate. We expect chase for deposits is likely to intensify in the coming quarters. <cmsannotation type="cmsannotation" annotationid="What are the next triggers for the market?" comment="subhead" text="What are the next triggers for the market?">What are the next triggers for the market?</cmsannotation> We feel optimistic that in the coming years, the PAT/GDP ratio will comfortably breach its previous peak in FY08 of 7.2%, given that 1) we have yet to see any operating leverage begin to play out since GDP (in real terms) has just about reached FY20 levels 2) services sector has emerged stronger with one-off hits like telecom AGR (adjusted gross revenue) behind, and e-commerce having taken flight 3) banks and NBFCs have seen a substantial cleaning up of NPAs (non-performing assets), are governed by a much stronger regulatory framework, and are substantially better capitalised than 3 years ago 4) corporate debt/GDP has fallen from 41% to 32% in the last 9 years thanks to chronic underinvestment 5) policy environment is supportive with the government having cut corporate taxes, introduced PLI (production-linked incentive) schemes and driven up tax collections, etc. and 6) other domestic clean-up/speed bumps like GST/RERA, Covid are behind us. These factors can drive a strong domestic growth cycle. <cmsannotation type="cmsannotation" annotationid="Should RBI go slow on rate hikes now?" comment="subhead" text="Should RBI go slow on rate hikes now?">Should RBI go slow on rate hikes now?</cmsannotation> Yes. RBI is likely to opt for a 35bps hike in the December policy meeting, after three consecutive 50bps hikes. Post the 35bps hike, we expect the benchmark to be raised by 25bps in Feb, which is likely to mark the end of the current rate hike cycle. The RBI wants to restrict the inflation figure within its tolerance limit. We saw the inflation cooling down in October and the Manufacturing PMI hitting a 3-month high as a result of lower inflation. Hence, we expect the RBI not to overdo the rate hike and wait for the impact of the hikes to be seen for a few months, thus avoiding a slowdown of the economy. 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Expect Nifty to end the December series on a positive note, reach a target of 18,900-19,000, says R Venkataraman of IIFL Securities

<ul><li>Finance Minister Nirmala Sitharaman presented the Union Budget for 2022-23 in Parliament on Tuesday.</li><li>This year's budget is indexed towards startups, MSMEs, infrastructure projects, rural revival, digital payment apps, telecom growth and affordable housing.</li><li>We reached out to digital, media and creative agencies to understand how the increased focus on digitalisation, sustainability, blockchain and push to MSME can impact the ad and marketing industry.</li></ul>Be it the introduction of a Digital University to make education accessible across the country or the proposed launch of a Digital currency by the Reserve Bank of India to the government’s focus on promoting digital payments and fintech, Finance Minister Nirmala Sitharaman made it is clear that digital is the way forward. The Union Budget 2022-23 aims to boost the country's digital infrastructure and enable a cashless economy. The government also announced that it will set up an Animation, Visual Effects, Gaming and Comics (AVGC) promotion task force to give a push to the animation and gaming industry. To facilitate the roll-out of 5G mobile services in India, FM Sitharaman said that Spectrum auctions will be conducted in 2022. This, in turn, will give impetus to Voice, Augmented Reality and Virtual Reality and pave the way for the Metaverse. The Digital Rupee using blockchain will help Indians accept virtual currency and accelerate cryptocurrency exchange in India. Overall, the budget also shows a promise for Electric Vehicle brands, digital payment apps, MSMEs, gaming industry and start-ups. We reached out to digital, media and creative agencies to understand how the increased focus on digitalisation, sustainability and blockchain can impact the advertising and marketing industry. Here’s what they said: Anupriya Acharya, South Asia CEO, Publicis Groupe: The Budget is positive, growth-oriented and with reforms in the right direction. The advent of 5G is sure to transform communications – for our industry it will help creation of better AV, voice and AR/VR experiences. It will also fuel digital payments, streaming entertainment, gaming, e-commerce, tele-medicine etc which in turn will aid more Unicorns! It is also heartening to note that a special Task Force is being set up for AVGC (Animation, Visual Effects, Gaming and Comic) as this will help us build the much needed capacity both for domestic as well as global markets. And then there have been no changes in income-tax slabs for people, which many consumer segments were worried about. This in turn boosts consumer sentiment. From e-passports, to battery swapping for electric vehicles, setting up of optic fiber in the remotest of villages, setting up of a digital university and skilling through an e-portal, the big push is for technology, digital infrastructure and empowerment. Narayan Devanathan, Chief Client Officer, dentsu India: Having gone through the 38-page document of the Finance Minister’s budget speech, I decided to do a search for a couple of words that I thought kept repeating throughout her speech. The words “will be” occurred 110 times in the entire speech. When I narrowed my search to the single word “will,” the number rose to 362. To me, those two words sum up the essence of what this year’s budget is and is not. What it is, is a future-focused budget, aiming at the distant vision of India@100, with a 25-year Amrit Kaal lead-up. What it is not, and what I felt was sorely needed this year of all years, is a present-focused budget. A punishing 2021 for the aam aadmi with more-than-usual expenditure on health and sustenance meant the general populace was looking for immediate relief that would place more cash in their household budgets. That did not happen. Nor was there any extraordinary investment in relieving the healthcare expenditure burden. For all the importance of farmers in upcoming poll-bound states, there was neither major sop nor stimulus given to back the importance of agriculture as a spine if not engine of the economy. Even the MSME sectors were only handed a slightly longer lease of life with the extension of the ECLGS, but there was no real move to stimulate consumption by placing more cash at consumers’ disposal, for example, extending LTA claims to restaurants (and not just accommodation). There is perhaps plenty for the industry to cheer about since it can afford to think about the future and a slightly longer term than just the here and now of survival. The stock market did cheer up even before the FM’s speech, but that only served to underscore the dichotomy between the real health of the population and the Minority of Haves. When the general population probably can’t afford to wait for the benefits of trickle-down economics to reach them in yet another trying year, the dreams and wheels of a consumer-driven economy might move slower than the industry might like, despite the many future-facing and progressive policies announced. Virat Tandon, Group CEO, MullenLowe Lintas Group: The union budget can be termed as consistent with the government's vision to reach the 5 trillion GDP mark by 2025-26. Hence, the strong focus on capex to boost infrastructure that connects and streamlines middle India and provides the engines of entrepreneurship across the length and breadth of the country. It also shows India's commitment to bring a digital first economy with the 5G rollout planned for next financial year, clarity on India's policy for cryptocurrency, data centres, EVs and our very own digital Rupee. Start-up culture will continue to flourish with the right policy framework. These investments and policies will generate jobs and go a long way in inclusive and sustainable growth for Bharat. Anurag Bansal, COO &amp; CFO, DDB Mudra Group: This Union Budget looks neutral, with no major changes in taxation. The launch of digital Rupee based on blockchain technology is a big move to bring in official cryptocurrency in India. New e-passports with embedded chips would definitely ease overseas travel. Managing the Fiscal deficit while pushing for growth and investments is a great balancing act taken on by the government. It will give a boost to capital investments and infrastructure development. Kartik Sharma - Group Chief Executive Officer – India, Omnicom Media Group: With an impetus on holistic growth, developing infrastructure and job creation across sectors, the 2022 union budget shows promise with a focus on the big picture. Reviving economic growth in the post-pandemic environment has been a focus for this government and this progressive, digital-first, and development-oriented budget reflects that. Not only does it provide a boost to the MSME, agriculture and healthcare verticals, but also signals that investing in infrastructure today will connect India better tomorrow. With an increased focus on digitization, some of the standouts for me were that the budget recognized the current gaps and opportunities within the education sector, and is advancing towards uplifting India with the creation of a digital ecosystem - one that is focused on upskilling and creating more employment; aligned with the dynamic needs of today. It also aims to further strengthen communications in the rural sector and build upon the overall financialization of India. Furthermore, while the rollout of a 5G ecosystem will improve the quality of services, the launch of digital money, supported by blockchain, signals an increasing focus on transparency. With consistency in strategic direction and focus on propelling the MSME and start-up ecosystem, this is a welcoming budget for new-age businesses and a hopeful one that will ultimately lead to a boost in the A&amp;M industry as well. We're at the cusp of the next stage of India's digital revolution and although certain factors like data privacy still remain an area to be delved deeper into, as infrastructure and banking penetrate further into rural India, we’re looking hopeful and strong to transform into a forward-leaning digital economy of tomorrow.” Deepak Mittal, CEO and Co-Founder, TO THE NEW: The government's unprecedented commitment to technology innovation and adoption in this union budget is highly encouraging. Breakthrough developments and futuristic technology such as the introduction of digital currency, the rollout of 5G within FY22-23, and e-passports using embedded chips are exciting for the country's future. Among the measures announced, the budget highlights special incentives to startups and the launch of a progressive, new portal encouraging a digital ecosystem for skilling and upskilling. These initiatives will serve as a successful catalyst for the country's economic growth. Atul Shrivastava, Group CEO &amp; Executive Director at Laqshya Media Group: The union Budget underlined the government’s focus on long-term growth. As India’s economic growth is estimated to be 9.2% in the upcoming financial year so it would be good for all the industry and with overall growth, we are sure advertising &amp; media will also show remarkable growth which was low due to the pandemic in the last couple of years. As announced the National Highways to be expanded by 25,000 km under PM Gati Shakti mission. Highways are adding a new dimension to the growth of the OOH Industry as advertising on the Highways is emerging as very strong choice for brand building for many categories. Prasad Shejale, Founder and CEO, Logicserve Digital: The FM has announced a very progressive budget with an intention to widen India's horizons and outlook in the next five years, leveraging emerging technologies. The Government has addressed some urgent priorities underpinning the digital sector, including the launch of digital currency, API-based skill credentials, digital learning channels, digitization of manual processes, etc. On the digital connectivity front, the 5G spectrum auctions will finally make the dream of a tech-savvy India a reality, further boosting the country's digital infrastructure. Additionally, the launch of a design-led manufacturing scheme for the 5G ecosystem as part of the PLI scheme will ensure affordable broadband and mobile communication even in far-flung areas. The availability of high-speed internet connectivity in urban as well as rural areas will encourage marketers to experiment with blockchain, AR, VR. On the skilling front, initiatives like establishing a digital university will provide an opportunity for youth to learn new skills from the comfort of their homes. The creation of a new task force to build domestic capacity in the Animation, Visual Effects, Gaming and Comic (AVGC) sector is commendable. The overall budget is future tech-enabled and balanced. Ahmed Aftab Naqvi, Global CEO &amp; Co-founder, GOZOOP Group: While there will always be hope for more and better, the continued push towards digital, fintech and the boost for start-up ecosystem with the extension of tax benefits till March 2023 along with capping the surcharge at 15% irrespective of the amount of long term capital gains, will fuel the fire of entrepreneurship in our nation. Varun Duggirala, Entrepreneur, Co-founder of The Glitch, Author, Content Creator and a Podcaster: The twin announcements of the digital rupee and the taxation on ‘virtual digital assets’ is clearly a focused drive from the government to regulate the crypto space. What needs to be seen is how this plays out because regulating a decentralized space is a paradox in itself. Another point that stood out for me was the national mental health program. More than anything else it signifies the normalizing of mental health as a legitimate area of focus for us as a nation. Shrenik Gandhi, CEO and Co-founder, White Rivers Media: In my opinion, it is a fairly balanced budget. There is sufficient emphasis being laid on up-skilling, and making right investments in tech which is the need of the hour. The previous budget was more inclined towards setting up a strong foundation in the digital space, and this one is essentially focused on making further advancements. Besides, Digital Rupee being introduced is indeed, a great news across sectors and it will be exciting to finally watch it become a reality. It can prove to be a game-changer in India's future as transactions will become even more instantaneous. Speaking of the expected benefits, let’s not forget that this is India’s #Budget and not a Big Bazaar scheme announcement. So, the immediate benefit may not be seen right now but considering the long-term narrative, it is a fairly established budget. Sahil Chopra, Founder &amp; CEO- iCubesWire: While the general trend of the <keyword id="12134566" type="General" weightage="20" keywordseo="union-budget-2022" source="Orion">union budget 2022</keyword> has its emphasis on ease of doing business, I strongly believe, data and digital occupied the centerpiece of the budget. The plans to focus and promote the fintech and digital economy are a very strong positive move. New age technologies, keeping data and digital at heart of it will allow the tech enablers to transform multiple industries. For MSMEs, the government has plans to outlay Rs 2 trillion which is again a welcoming move that will help in enhancing startups as well as entrepreneurial opportunities for all. Besides, extension on tax exemption to startups and promotion of startups to facilitate ‘Drone Shakti’ through varied applications and drones as a service is also encouraging. The ambitious optical fibre to the villages under PPP in 2022-23 shall get the next 100M in the Digital Universe soon. To sum up, it’s a positive budget for the digital sector which has always vouched for a strong digital infrastructure in the country." Chetan Asher, Founder and CEO, Tonic Worldwide: The budget clearly will help the country march towards digital adoption and transformation in many sectors. With 5G rollout on the cards we will see an acceleration across the board. The digital rupee will put India right up on the map of advanced digital economies. Clarity on Digital assets and crypto will give it new impetus. All of these initiatives will help us emerge as leaders in adoption and growth of blockchain technology Ambika Sharma, Founder &amp; MD, Pulp Strategy: The Budget is interesting as the Government has focused on all sectors. The financial support for the digital payments ecosystem is a welcome move and further reaffirms the Government of India's digital banking push. This push on digitization will make way for more inclusion in the ecosystem. The focus on 'Ease of doing business is a great step, as it will further promote entrepreneurship in the economy” . The 2022-23 budget finely balanced fiscal retreat with supporting economic recovery. The budget focused on a familiar strategy of driving capital expenditure to drive growth, to crowd in private investment through higher public spending. Although markets could be disappointed with a higher fiscal deficit of 6.4% of GDP for FY23 than expected, it is perhaps prudent to not undertake aggressive fiscal consolidation at this nascent stage of recovery. While elevated market borrowings are likely to pressurize bond yields, the inclusion of green bonds in the borrowing plan is an interesting innovation. In terms of specific policy announcements, the move towards self-reliance through protection for domestic manufacturers (change in custom and import duties) aligns with the long-term goal of Atmanirbhar Bharat. The government has extended the startup tax holiday and concessional tax for manufacturing startups by a year. While that was on the cards, it doesn’t address the core need of startups to be given a longer tax holiday of 5 years as required. One of the most encouraging aspects of the budget has been the announcement to set up an AVGC (animation, visual effects, gaming, and comics) promotion task force to plan and build domestic capacity for serving domestic as well as global markets. Loss from the transfer of virtual digital assets cannot be set off against any other income. The creation of a unified logistics platform and the developments of 100 new cargo terminals in the next three years are significant steps in improving the supply chain ecosystem in the country. Infrastructure status given to Data Centers will provide a huge boost to the fast-evolving digital environment of the country. The fiscal outcome is broadly in line with our expectations with the government having continued its focus on infrastructure and rural demand. Himanshu Arya, Founder and CEO, Grapes: The Union Budget for the financial year 2022-23 has set the stage with an invigorated focus on ramping up the process of the digital revolution. The government’s focus on the digital ecosystem is a progressive move to render an inclusive landscape for job openings and entrepreneurial opportunities. The extension of tax incentives for startups for one more year will give a slight relief to the industry. I hope that the cash flow improves in the market. The Union Budget has various encouraging initiatives and is directed towards a more viable and flexible business ecosystem that completely aligns with the ideologies of Make in India. Siddharth Devnani, Co-Founder &amp; Director, SoCheers: Digital and digitization stood out as a strong overall trend in the Union Budget 2022. The budget put a great focus on long-term growth and given how intricately ‘digital’ was integrated into several measures, it can be seen as an integral part of that growth. Implementation of the Central Bank digital currency will definitively aid the growth of digital economy and finance in the country, opening doors for digital acceleration across sectors. The announcement about the new digital university and the renewed focus on digital learning, further presents an opportunity, especially to the fast-evolving Educational Technology sector. However, a definite plan on how this will pan out for all corners of India remains to be seen. Moreover, digital will also be leveraged in the set-up and operation of tele-mental health centres, providing the necessary focus and access to mental health services to the Indian masses. This comes as one of the most welcome move as it’ll contribute infinitely to the nation’s long-term growth.

You Searched For "PLI scheme for telecom" and got 12 results

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Expect Nifty to end the December series on a positive note, reach a target of 18,900-19,000, says R Venkataraman of IIFL Securities

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