Issues related to data privacy and rising <keyword id="20127272" type="General" weightage="20" keywordseo="online-frauds" source="keywords">online frauds</keyword> are emerging as significant hurdles in the growth of e-commerce in India, said the <keyword id="20613906" type="General" weightage="20" keywordseo="Economic-Survey" source="keywords" meta.keywordsubtype="org" meta.entityname="Economic Survey" meta.hostid="261" meta.entityid="Economic Survey">Economic Survey</keyword> 2023-24 tabled in Parliament on Monday. Citing third-party data, the survey said that the e-commerce industry in India is expected to cross USD 350 billion by 2030 and called for the need to educate users on the safe use of e-commerce platforms. "The rise of e-commerce is constrained by inadequate skills required for online selling, such as cataloguing. <keyword id="22505774" type="General" weightage="20" keywordseo="data-privacy-issues" source="keywords">Data privacy issues</keyword> and increasing online fraud have turned out to be the most significant hurdle in the growth of e-commerce in India. It becomes imperative to educate users on the safe use of e-commerce platforms," the survey said. The survey mentioned that India's e-commerce market has gained significant momentum during the past few years, owing to technological advancements, evolving new-age business models coupled with government initiatives like the Digital India program, UPI, One District - One Product (ODOP), Open Network for Digital Commerce (ONDC), new foreign trade policy, easing of FDI limits and Consumer Protection (E-Commerce) (Amendment) Rules 2021. It has identified data privacy and <keyword id="19906883" type="General" weightage="20" keywordseo="cybersecurity" source="keywords">cybersecurity</keyword> as critical concerns in the <keyword id="22505776" type="General" weightage="20" keywordseo="digitisation-of-services" source="keywords">digitisation of services</keyword> in the country and called for adopting strong security measures, compliance with privacy regulations, and innovation, among others. "Data privacy and cybersecurity have become critical concerns with the increasing digitisation of services," according to the survey. It said that the government is spearheading data protection laws and cybersecurity policies to safeguard consumer data and strengthen cybersecurity measures in the services sector. "To further embrace technology with confidence, ensuring the adoption of strong security measures, compliance with privacy regulations, and fostering innovation in security technologies are essential," the survey noted. It said the future of e-commerce is built on the enhanced <keyword id="20290101" type="General" weightage="20" keywordseo="user-experience" source="keywords">user experience</keyword> through <keyword id="19899640" type="General" weightage="20" keywordseo="AI" source="keywords">AI</keyword>, seamless <keyword id="21332958" type="General" weightage="20" keywordseo="digital-payment-methods" source="keywords">digital payment methods</keyword>, innovations like UPI, and business engineering data analytics for business operations and enhancements. The survey mentioned that the buyer ecosystem in India is evolving at a very sharp rate, and business models will need to innovate to serve the needs of a diverse shopper base regarding service expectations, price sensitivity and language requirements. "Local language platforms are needed as the shopper base expands to tier-2 and tier-3 cities. Growing startups and innovative social media platforms provide an opportunity to test unique business models that might be targeted to specific demographic cohorts," the survey said.

Data privacy issues, online frauds emerging as e-commerce growth hurdles: Eco Survey

<ul><li><keyword id="19955648" type="General" weightage="20" keywordseo="Adani-Group" source="keywords" meta.keywordsubtype="org" meta.entityname="Adani Group" meta.hostid="261" meta.entityid="Adani Group">Adani Group</keyword> has denied reports that it is in talks to acquire a stake in <keyword id="20253123" type="General" weightage="20" keywordseo="One97-Communications" source="keywords" meta.keywordsubtype="org" meta.entityname="One97 Communications" meta.hostid="261" meta.entityid="One97 Communications">One97 Communications</keyword>.</li><li>One97 Communications, the parent company of Paytm has also denied reports of a stake sale.</li><li>Recent media reports claimed that Adani Group is looking to enter the UPI and e-commerce segments.</li></ul> Gautam Adani-led conglomerate Adani Group has denied reports that it is in talks with Vijay Shekhar Sharma-led One97 Communications, the parent company of Paytm, for acquiring a stake in the fintech company. Amid reports that the Adani Group is looking to enter the <a href="https://www.businessinsider.in/business/news/adani-group-plans-to-foray-into-e-commerce-and-upi-segments-to-compete-with-mukesh-ambani/articleshow/110495484.cms">UPI and e-commerce</a> segments, a <a href="https://timesofindia.indiatimes.com/business/india-business/adani-in-talks-with-vijay-shekhar-sharma-to-acquire-stake-in-paytm/articleshow/110509772.cms">report</a> by the Times of India claimed that the company is in talks with One97 Communications for a stake acquisition, citing sources familiar with the matter. The report claimed that Paytm founder and CEO <keyword id="20004114" type="General" weightage="20" keywordseo="Vijay-Shekhar-Sharma" source="keywords">Vijay Shekhar Sharma</keyword> had met <keyword id="19929098" type="General" weightage="100" keywordseo="Gautam-Adani" source="keywords">Gautam Adani</keyword> at its Ahmedabad headquarters on Tuesday, May 28, regarding the deal. The report led to immense speculations across the business and political circles as expectations around Adani Group taking on the likes of JioFinance and Google Pay grew ripe. The share price of One97 Communications climbed 5%, hitting the upper circuit. The company’s share price reached INR 359.55. The opposition party Congress’s leader Jairam Ramesh launched a scathing attack on the Prime Minister, posting on X "Remember when Paytm was referred to as Pay to Modi? Prophetic words! Atmanirbhar to Parmatmanirbhar to Adaninirbhar!" <cmsannotation type="cmsannotation" annotationid="Adani Group issues a denial" comment="subhead" text="Adani Group issues a denial">Adani Group issues a denial</cmsannotation> The Adani Group has now come out and denied the media report. “We categorically deny this baseless speculation. It is totally false and untrue,” the Adani Group said in a statement. <cmsannotation type="cmsannotation" annotationid="One97 Communications also denies talks" comment="subhead" text="One97 Communications also denies talks">One97 Communications also denies talks</cmsannotation> In an official statement, One97 Communications denied reports of its talks with Adani Group. "We hereby clarify that the abovementioned news item is speculative and the company is not engaged in any discussions in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," One97 Communications said in an official filing. <cmsannotation type="cmsannotation" annotationid="Adani Group looking to enter the UPI and e-commerce segments" comment="subhead" text="Adani Group looking to enter the UPI and e-commerce segments">Adani Group looking to enter the UPI and e-commerce segments</cmsannotation> Earlier, media reports claimed that the Adani Group is looking to enter the UPI and e-commerce segments in India. According to the reports, the Adani Group is reportedly considering applying for a license to operate on the country’s public digital payments network, the Unified Payments Interface (UPI). The group is also in talks with banks to offer a co-branded Adani credit card to its customers. The group is also reported to be in negotiations to enter the e-commerce segment through the government-backed Open Network for Digital Commerce (ONDC). A deal with Paytm, which has several years of experience in both e-commerce and payments, could have helped the Adani Group establish itself in these segments and take on existing players such as Reliance Industries, Google, PhonePe and more. Paytm has been facing several regulatory challenges in recent years, with the Reserve Bank of India (RBI) ordering Paytm Payments Bank Ltd to stop the bulk of its activities earlier this year. The action led to a whopping 50% drop in One97 Communications share price within two weeks in February. SEE ALSO: <h3 style="line-height:1.38;margin-top:0pt;margin-bottom:4pt;"><a href="https://www.businessinsider.in/business/news/adani-group-plans-to-foray-into-e-commerce-and-upi-segments-to-compete-with-mukesh-ambani/articleshow/110495484.cms">Adani Group could soon enter e-commerce and UPI segments, to rival Mukesh Ambani and Google</a></h3><h3 style="line-height:1.38;margin-top:0pt;margin-bottom:4pt;"><a href="https://www.businessinsider.in/sports/webstories/ipl-2024-award-winners-orange-cap-to-emerging-player-of-the-season-here-are-the-winners/slidelist/110454525.cms">IPL 2024 award winners – Orange cap to emerging player of the season, here are the winners</a></h3><h3 style="line-height:1.38;margin-top:0pt;margin-bottom:4pt;"><a href="https://www.businessinsider.in/tech/mobile/news/poco-f6-with-snapdraon-8s-gen-3-chipset-launched-starting-at-29999/articleshow/110367623.cms">Poco F6 with Snapdraon 8s Gen 3 chipset launched starting at ₹29,999</a></h3>

Adani-Paytm Deal: Both One97 Communications and Adani Group deny reports as ‘baseless’ and ‘speculative’

The e-commerce market in India is projected to increase significantly to over USD 300 billion by 2030 as the country's <keyword id="20107419" type="General" weightage="20" keywordseo="digital-economy" source="keywords">digital economy</keyword> is set to reach a whopping USD 1 billion by the same year. According to <keyword id="19918506" type="General" weightage="20" keywordseo="Invest-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Invest India" meta.hostid="261" meta.entityid="Invest India">Invest India</keyword>, India's online shopper base will be the 2nd largest globally by 2030, with nearly 500-600 Mn shoppers. Even now, India has the 2nd largest Internet user-base globally with 881 million users. India is moving towards becoming a dominant force in global e-commerce by 2030, driven by a growing digital economy and an expanding internet user base. The data from the investment promotion and facilitation agency Invest India from shows India taking the lead in <keyword id="19957108" type="General" weightage="20" keywordseo="online-shopping" source="keywords">online shopping</keyword>, the e-commerce sector in India is valued at USD 70 billion at present. This makes up for just around 7 percent of the total retail market in the country. However, several factors are likely to contribute a bright future outlook for the sector. <cmsannotation type="cmsannotation" annotationid="Growing internet penetration and digital economy" comment="subhead" text="Growing internet penetration and digital economy">Growing <keyword id="20707509" type="General" weightage="20" keywordseo="internet-penetration" source="keywords">internet penetration</keyword> and digital economy</cmsannotation> Internet penetration across has seen substantial growth, with over 60% of the Indian population (918 million) using the internet by September 2023. Further, an estimated 87 percent of Indian households are projected to have internet access as early as 2025. The time spent accessing the internet via mobile devices has also increased by 21 percent compared to 2019. The affordability of data prices in India is a key factor, with one gigabyte of data priced at around USD 0.17 (Rs 13.5), encouraging a large portion of the population to go online. <keyword id="21457667" type="General" weightage="20" keywordseo="mobile-data-traffic" source="keywords">Mobile data traffic</keyword> has tripled from 2018 to 2023, demonstrating the growing dependence on <keyword id="19979951" type="General" weightage="20" keywordseo="digital-platforms" source="keywords">digital platforms</keyword> for diverse requirements. It is projected that by 2026, 1.18 billion people across the country will have access to smartphones, over 80% of India's population. The increasing number of smartphone users along with higher average data consumption per user, boosts the digital economy. The Unified Payments Interface (UPI) has become a major player in digital payments, handling transactions worth USD 1.5 trillion in 2022. There has been a significant increase in the availability of local language and mobile-first content, with about 73 percent of India's internet users utilizing Indian languages. As a result, there is an estimated regional language user base of 540 million, creating a market worth USD 53 billion. Digital infrastructure like UPI, eKYC, and Aadhaar has cut down the consumer onboarding time by 80 percent, enhancing the digital experience. The Open Network for Digital Commerce (ONDC) is another notable initiative by the Government of India, launched in 2022. It aims to provide equal opportunities to MSMEs to thrive in digital commerce and democratize e-commerce. <cmsannotation type="cmsannotation" annotationid="A transition along with growth" comment="subhead" text="A transition along with growth">A transition along with growth</cmsannotation> In FY 2022-23, Government e-marketplace (GeM) registered its highest ever Gross Merchandise Value of $2011 Bn, shows data from Invest India. The projected growth in online shoppers in India is substantial, with a compound annual growth rate (CAGR) of 22 percent to 88 million in rural India and 15 percent to 263 million in urban India from 2019 to 2026. There is a notable transition towards rural-focused value e-commerce, with more than 60 percent of demand anticipated to come from tier 2-4 towns and rural India by 2026. Government programs such as the National Logistics Policy are designed to streamline deliveries to remote areas, improving the efficiency and cost-effectiveness of logistics. The quick commerce market in India's hyperlocal mobility sector is also projected to grow exponentially to achieve a market size of USD 5.5 billion by 2025. Leading companies like Swiggy and Zomato are at the forefront of the market, while startups like Zepto are also gaining substantial market share. <keyword id="20873923" type="General" weightage="20" keywordseo="social-commerce" source="keywords">Social commerce</keyword>, a new trend that uses social networks and digital media to connect buyers and sellers, is also projected to achieve a market size of USD 70 billion by 2030, with small video applications gaining significant popularity. Significant mergers and acquisitions have been observed in the e-commerce sector, with companies such as Zomato and PhonePe making strategic decisions to enhance their positions. Government schemes like Jan Dhan Yojana, BharatNet Project, and the implementation of Goods &amp; Service Tax (GST) have been instrumental in shaping India's digital economy. (With inputs from ANI)

India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030

New Delhi [India], May 25 (ANI): While risk of global recession has receded but concerns of inflation is impending which re-ignites the risks of global financial stability. <keyword id="6355408" type="General" weightage="20" keywordseo="imf" source="Orion">IMF</keyword>, <keyword id="6354424" type="General" weightage="20" keywordseo="world-bank" source="Orion">World Bank</keyword> and prominent rating agencies have predicted further slow-down in global growth this year. Escalation of the recent conflict in the Middle East, financial stress, persistent inflation and a slowdown in international trade are downside risks for global growth. Adding to that a potential debt crisis is looming over the global economic landscape. The International Monetary Fund's (IMF's) Global Debt Monitor reported that the total global debt, private plus public, has risen to USD 235 trillion which is equivalent to 238 per cent of the global GDP. Also there is a grave concern that fiscal prudence may take a back seat, as more than half of the world's population is going to the election this year. But amid all this pessimism, India is seen by international agencies and top rating firms as an emerging economic superpower of the world. India's central bank in its monthly economic review says "There is a growing optimism that India is on the cusp of a long-awaited economic take-off." India is positioned to remain the fastest-growing major economy, demonstrating resilience amid geopolitical challenges and supply chain pressures. Organisation for Economic Cooperation and Development (OECD) has projected global growth at 3.1 per cent in 2024, and 3.2 per cent in 2025. But India is projected to grow at 6.6 per cent, the fastest among major emerging markets. China is projected to grow at 4.9 per cent and Brazil at 1.9 per cent. Among advanced economies, US, UK and Euro area growth is projected at a mere 2.6, 0.4 and 0.7 per cent respectively. Recently, the IMF, World Bank and rating agencies like Moody's, S&amp;P and many others have revised India's growth upwards. IMF's April 2024 World Economic Outlook highlights the expected robustness of the Indian economy in 2024 and 2025 and attributes it to strong domestic demand and a growing working-age population. RBI's in its monthly economic report highlighted the attention of global observers to the dramatic reduction of poverty in India. Prime Minister Modi has said in his election rallies that over the last 10 years, 23 crore people have come out of poverty in India. World Bank too has said that at the height of the COVID-19 pandemic in 2021, only 12.9 per cent of India's population lived on USD 2.15 a day, the benchmark for extreme poverty. Recent estimates suggest that extreme poverty in India is nearing extinction, a remarkable transformation for a country once synonymous with deprivation. If we talk about the development works done over the last ten years. In the infrastructure space, India's power sector has achieved 100 per cent electrification. As per government data, rural areas now enjoy 20 hours of daily power availability, while urban areas have 23.5 hours. Additionally, India has become the world's fourth-largest producer of <keyword id="19895602" type="General" weightage="20" keywordseo="renewable-energy" source="keywords">renewable energy</keyword>. India is aggressively pushing research and innovations in green hydrogen energy. The government has announced many incentive schemes for investment in the sector. According to the World Economic Forum (WEF) projections by the year 2030. Green energy will contribute 50 million net jobs and USD 1 trillion in economic impact. Over the last ten years, India's road and highways sector has grown with a rapid pace. By the end December 2023, India has about 66.71 lakh km of road network, which is the second largest in the world. The <keyword id="21755092" type="General" weightage="20" keywordseo="digital-revolution-in-India" source="keywords">digital revolution in India</keyword> is another sector where the country has taken a lead, seven countries including France, UAE, Sri Lanka and Mauritius have adopted India's UPI for financial transactions. India is rapidly becoming a digital powerhouse of the world with the highest number of digital transactions globally and broadband connectivity reaching over 93 per cent of villages. E-commerce platforms like the Open Network for Digital Commerce (ONDC) are expanding online market access for small businesses. Government thrust on digital public infrastructure is not only enhancing productivity, efficiency, and employment but also adding hidden revenue to the government exchequer. On the trade front, despite a slowdown in international trade, India's exports marked an all-time high exports of USD 778 billion in FY24. India has become the seventh-largest exporter of services globally and the second-largest among developing countries. According to UNCTAD, India beat the world average in services exports in 2023. According to fDi intelligence, India is anticipated to be among the top 10 economies for foreign direct investment (FDI) momentum in the year 2024. Despite a net outflow of USD 1.1 billion from Indian equities in April, the country's foreign exchange reserves have increased by USD 21.7 billion in 2024, the highest among major reserve-holding nations. Forex reserves now stand at USD 644.2 billion, covering more than 10 months of projected imports for 2024-25 and nearly all external debt as of the end of December 2023. Gross inward foreign direct investment (FDI) remained stable at USD 71.0 billion during 2023-24, it was USD 71.4 billion a year ago. RBI data shows that more than 60 per cent of the FDI equity flows were directed towards manufacturing, electricity and other energy, computer services, financial services and, retail and wholesale trade. Singapore, Mauritius, the US, the Netherlands, Japan and the UAE contributed to more than 80 per cent of the flows. However, net FDI declined to USD 10.6 billion during 2023-24 from USD 28.0 billion a year ago, mainly reflecting higher repatriation. Speaking at the annual Summit of industry body CII on May 17th, finance minister Nirmala Sitharaman asked the Industry not to ignore manufacturing as some economists suggest. She said, "India must also increase manufacturing with the help of policies, its share in manufacturing in global value chains. So we need to have greater sophistication in our product manufacturing and we also need to see how this can be given the best policy support, IMF estimated that India's contribution to the global growth for five years beginning 2023, will be 18 per cent, So, between 2023 and 2028 we are looking at an India which will be dynamic contributing to 18 per cent to the global growth." Reacting on FM's push on manufacturing, esteemed banker K V Kamath, told "If India grows at 7-7.5 per cent, manufacturing will happen on its own. It will happen on its own. I look at all that has been done, the clean balance sheets, (of banks) the opportunities before them, the growth that we see, the Indian economy should do extremely well." On India's growth story Ajay Piramal, Chairman of Piramal Group told ANI that "We'll be the third-largest economy, maybe a USD 40 billion economy. Even now, in the next - I think by 2029, we'll be the third-largest economy. So only the U.S. and China will be ahead of us. So that's a big progress the country is making. " Government policies are pushing up new and innovative sectors in the manufacturing space. The Production Linked Incentive (PLI) schemes for 14 identified sectors, with a total outlay of about Rs 1.97 lakh crore are under various stages of implementation. Some of the beneficiary sectors include EV, EV Batteries, Hydrogen electrolysers, pharma, food processing and electronics among others. In the manufacturing space, the electric vehicle (EV) segment is a major disruptor. In March government came up with a new EV policy to attract investment in the sector. The new EV policy allows the import of completely built units (CBUs) at a concessional 15 per cent duty for five years if a company invest USD 500 million in setting up a manufacturing unit in India. The new policy is likely to be operationalised by the end of July. Companies will be given 120 days, window to apply under the scheme. This will open a window of opportunities for international EV manufacturers including Tesla to enter India. In electronics, India has become a major player in the mobile phone market. Over the last ten years, mobile phone manufacturing in India has jumped 21 times to Rs 4.1 lakh crore from Rs 18,900 crore in 2014-15. Powered by iPhone exports, India has become the world's fifth largest exporter of mobiles at USD 29.1 billion in FY24 from USD 11.1 billion in FY23. The recent CPI data of India indicates higher growth in consumer demand from the rural market, it indicates a bigger growth potential in years to come. Goods and services tax (GST) collections in April 2024 recorded a y-o-y growth of 12.4 per cent, surpassing the Rs 2 lakh crore mark for the first time. The S&amp;P global outlook report has said that the Indian consumer market is likely to double by 2031. Consumer spending on food is estimated to rise to USD 1.4 trillion in India, spends on financial services will climb to USD 670 billion. All this indicates that over the last one decade, India has become a prominent player in the global landscape, attracting the interest of investors, policymakers and businesses worldwide. With a growth rate of over twice of most emerging market economies, lower tariffs, lower labour cost, special incentives by the government of India will continue to be a major attraction for investors. (ANI)

India could emerge as an economic superpower amid dull global economic landscape

<ul><li>A rapidly evolving technology landscape and consumer trends will shape how businesses perform, going forward.</li><li>A report by Wavemaker titled Spotlight23 has underlined the major trends that businesses will have to adapt to this year.</li><li>Some of the most prominent emerging technologies and consumer trends to watch out for in 2023 include artificial intelligence as a service (<keyword id="6355999" type="General" weightage="20" keywordseo="AI" source="Orion">AI</keyword>aaS), generative AI like ChatGPT and increasing use of Reels.</li></ul>A rapidly evolving technology landscape and quickly changing consumer trends require businesses to evolve with them at the same pace or risk falling behind. From the way customers interact with businesses to how businesses attract customers with new innovations, several emerging trends like artificial intelligence as a service (AIaaS), and increased focus on privacy and free speech have been identified in Wavemaker’s report titled Spotlight23. While ecommerce has existed for a long time, the Covid-19 pandemic changed how Indians look at it. According to a<a href="https://economictimes.indiatimes.com/small-biz/sme-sector/covid-pandemic-hot-housed-e-commerce-growth-across-amea-region-survey/articleshow/94643528.cms"> survey</a>, 83% of Indian consumers have increased their purchases from ecommerce platforms in the last three years, and this momentum is expected to gain pace. But that is just one aspect of the evolving technology and consumer landscape. Here are other hot and emerging trends of 2023, according to the Spotlight23 report. <cmsannotation type="cmsannotation" annotationid="Generative AI to grow 10x in the next three years" comment="subhead" text="Generative AI to grow 10x in the next three years">Generative AI to grow 10x in the next three years</cmsannotation> Generative artificial intelligence (AI) solutions, like ChatGPT and Dall-E are expected to see a massive uptake in the next three years, growing from 1% of the data generated to 10% by 2025. Generative AIs like Dall-E, ChatGPT generate images and text using the inputs provided by users. For instance, ChatGPT can write articles, code or even compose music based on the inputs provided by users. OpenAI, which launched both Dall-E and ChatGPT, said that the latter was used by over 1 million users within the first 24 hours of its launch. <cmsannotation type="cmsannotation" annotationid="AI as a Service (AIaaS)" comment="subhead" text="AI as a Service (AIaaS)"><keyword id="16177246" type="General" weightage="20" keywordseo="AI-as-a-Service" source="Orion">AI as a Service</keyword> (AIaaS)</cmsannotation> The gaining traction of low-code/no-code artificial intelligence (AI) tools has given businesses an opportunity to implement off-the-shelf AI tools in their services, instead of developing an in-house AI. This brings down the costs and also allows businesses to see what works and what doesn’t. Some of the use cases of AI as a Service include optimizing campaigns, predicting customer churn and engaging customers based on their usage patterns as predicted by the AI model. <cmsannotation type="cmsannotation" annotationid="Privacy and free speech to continue to gain prominence" comment="subhead" text="Privacy and free speech to continue to gain prominence">Privacy and free speech to continue to gain prominence</cmsannotation> Users are increasingly worried about their privacy, with 66% of internet users globally worried that their identity will be stolen, according to<a href="https://www.statista.com/statistics/296700/personal-data-security-perception-online/"> Statista</a>. Further enactment of privacy-focused laws like General Data Protection Regulation (GDPR) has put the spotlight on data privacy. The Spotlight23 report states that businesses will invest in privacy-centric technologies as customers become increasingly sensitive about their data. Another aspect that has gained prominence is free speech, as evidenced by the Twitter takeover by Elon Musk, and the rise of decentralized social media platforms like Mastodon, which has seen an 800% increase in users since October 2022, with the user base now standing at 2.5 million. However, the report adds that advertisers will likely stay away from Twitter until a balance between free speech and brand safety is found. <cmsannotation type="cmsannotation" annotationid="Reel it – engagement and social commerce is evolving rapidly" comment="subhead" text="Reel it – engagement and social commerce is evolving rapidly">Reel it – engagement and social commerce is evolving rapidly</cmsannotation> Instagram Reels’ rise in popularity can be explained with this metric alone – in Q3 2022, Meta reported over 140 billion reels were played, which means over 1.55 billion reel plays every day during the quarter, or 1.08 million reels played every minute. This makes it critical for brands to create Reels to drive user engagement, according to the report. The opening up of WhatsApp Business API to everyone provides business with another opportunity to generate new leads. Many of those examples are already live – for instance, JioMart’s catalogue can be browsed through WhatsApp, allowing them to place orders and make payments. Reliance’s media arm Viacom18, which bagged IPL streaming rights, could help Jio accelerate social commerce via partnerships with brands, leveraging its user base of over 450 million. <cmsannotation type="cmsannotation" annotationid="Social commerce growth to result in increased influencer collaborations" comment="subhead" text="Social commerce growth to result in increased influencer collaborations">Social commerce growth to result in increased influencer collaborations</cmsannotation> Gaining prominence of social commerce is expected to result in an increase in brands collaborating with social influencers. According to Statista, sales through social media stood at $992 billion in 2022, and they are expected to increase to $2.9 trillion by 2026. “Influencer collaboration can boost a company's revenue. For instance, Petco worked with Gabby Douglas and used livestream shopping events to reach and engage customers,” the Spotlight23 report said. Conversational AI is also expected to further drive user engagement, with several brands like H&amp;M, Levi’s and others already using chatbots to give personalized recommendations to buyers. <cmsannotation type="cmsannotation" annotationid="VR, AR and XR to deliver a more immersive shopping experience" comment="subhead" text="VR, AR and XR to deliver a more immersive shopping experience"><keyword id="6380951" type="General" weightage="20" keywordseo="VR" source="Orion">VR</keyword>, <keyword id="11853" type="General" weightage="20" keywordseo="AR" source="Orion">AR</keyword> and <keyword id="1786062" type="General" weightage="20" keywordseo="XR" source="Orion">XR</keyword> to deliver a more immersive shopping experience</cmsannotation> Technologies like virtual reality (VR), augmented reality (AR) and extended reality (XR) are expected to enhance the shopping experience of users and make it more immersive. These technologies allow users to try on products virtually to see if they suit them or not – for instance, Lenskart has a 3D try-on feature that lets users check out eyeglasses and sunglasses virtually before buying them. Asian Paints’ app allows users to take a photo of their wall and picture how it looks with the diverse range of colours and textures offered by the company. <cmsannotation type="cmsannotation" annotationid="ONDC could realize its potential in 2023" comment="subhead" text="ONDC could realize its potential in 2023">ONDC could realize its potential in 2023</cmsannotation> During a<a href="https://www.businessinsider.in/retail/news/democratising-commerce-ondc-could-be-the-upi-moment-for-small-retailers-msmes/articleshow/95393032.cms"> panel discussion</a> in November 2022, Thampy Koshy, the Chief Executive Officer of ONDC, said that Open Network for Digital Commerce (ONDC) is the Indian government’s attempt to democratise commerce. ONDC is an open platform that allows sellers to make their catalogues visible to every buyer on the platform. Koshy likened ONDC to UPI, saying “what UPI did was to essentially streamline and democratise the payment side of it. What ONDC is trying to do is a similar kind of transformation on the transaction side of goods and services.” ONDC is currently live in 83 cities, and it has 25 network participants along with over 700 merchants onboard. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/budget-2023-morgan-stanley-sees-focus-to-be-on-fiscal-consolidation-investment-led-growth/articleshow/97082715.cms">Budget 2023: Morgan Stanley sees focus to be on fiscal consolidation, investment-led growth</a> <a href="https://www.businessinsider.in/business/corporates/news/competitive-intensity-a-big-risk-for-dmart-say-analysts-after-company-misses-streets-q3-forecast/articleshow/97052145.cms">Competitive intensity a big risk for DMart say analysts after company misses Street’s Q3 forecast</a> <a href="https://www.businessinsider.in/business/corporates/news/hiring-by-it-cos-down-96-in-q3-compared-to-preceding-7-quarters-even-as-attrition-cools/articleshow/97023873.cms">Hiring by IT cos down 96% in Q3 compared to preceding 7 quarters even as attrition cools</a>

AI as a Service to free speech platforms and social commerce, these are the big emerging trends of 2023

<ul><li><keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword>’s promise to turn net profit positive in a year has cheered investors. </li><li>Margins in its core food delivery business has hit a multi-quarter high. </li><li>The worry? Monthly transacting users and gross order value has declined versus the previous reported quarter. </li><li>Nomura believes Zomato will find it difficult to achieve double-digit contributory margin with high growth in the long term </li></ul>Two years after it listed on the bourses, Zomato is on a recovery path. The stock which hit a high of over ₹150 per share fell sharply subsequently to below ₹50 a piece. However, the last quarter (Q1FY24) has seen a recovery from that level and it has now surpassed its listing price of ₹76. The stock has been rising steadily in the last three weeks, after its Q4 earnings report where it turned EBITDA positive in its core business, without including Blinkit, its quick commerce business. EBITDA is net income (earnings) with interest, taxes, depreciation, and amortisation. Moreover, the management also promised to turn positive not just at the consolidated adjusted EBITDA level but also at the profit after tax level in a year. Financial services company, JM Financial says this commitment is the ‘cherry on the cake’. “Tough macro posed growth headwinds but management showed urgency on profitability and that was despite the Gold programme launch,” said Jefferies. Zomato Gold is a subscription plan that offers free deliveries within a 10-kilometre radius for orders above ₹199. During the quarter, as many as 30% of the gross order value, from 1.8 million customers, came from Gold. The Gold plan could hurt its contributory margins (CM) because of its inability to charge every order. Yet, as of Q4, its CM in core food delivery business are comfortable after hitting a multi-quarter high. Contributory margins represent the incremental money generated for each unit sold after deducting the variable portion of the costs. “The core business milestone was achieved mainly on the back of solid expansion in the food delivery contribution margin to 5.8% in Q4 vs 5.1% in Q3. This was because profitability levers such as improvement in restaurant commissions and ad income, and lower discounts/variable cost offset the adverse impact of Gold launch,” said JM Financial. Ordering effects After the post-pandemic boom effects faded away, a lot of consumption patterns have changed, also evident in consumer spending on fast food — impacting growth in quick service restaurants. These headwinds have been impacting Zomato as well. The growth in Zomato’s food delivery business seems to have flatlined. Food gross order value declined 2% quarter-on-quarter, even as it grew 12% year-on-year. Moreover, its monthly transacting users (MTU) declined by 5% QoQ to 16.6 million, while growing at 6% YoY. Apart from the one-time impact of its decision to exit from 225 cities, the company attributes MTU decline to optimised marketing spend and withdrawal of the human support interface for abusive customer cohorts. “Also because of Zomato Gold, the MTUs have come down and not gone up because we do see an impact of clubbing some orders in the same households, which might have just a single membership,” Akshant Goyal, chief financial officer of Zomato said in an earnings concall. The management, however, remains confident about food delivery ordering going up in the first quarter of FY24. Analysts, on the other hand, are not too confident about their ability to sustain growth beyond the first quarter as summer holiday and IPL impact during April/May are one-off events. Its other businesses, however, continue to display good growth. Blinkit’s gross order value grew 17% QoQ, while order volume grew 24%. Revenues of Hyperpure, its business to supply ingredients to restaurants, grew 13.5% QoQ. Offsetting margins with growth While it’s on a path to profitability, Zomato is also caught between a rock and a hard place — of growth versus margins. To boost growth, it will have to go in for discounts – the lack of aggressive discounting by all players is already visible in the moderation in food ordered during the IPL season, generally a big occasion for online food platforms. This year, the IPL spike in food ordering was at a modest 7% for the industry as compared to the 2020 IPL when it was over 50%, as per Redseer. This time, there were no high <a href="https://www.businessinsider.in/business/news/ipl-2023-sees-tier-2-cities-order-more-on-swiggy-zomato/articleshow/100673879.cms">decibel ads along with deep discounts.</a> Like other players in the business, the company will also find it tough to keep up with the high margin trajectory, while also chasing growth. “Overall, we lower our growth assumptions for its food delivery’s gross order value growth, from around 20% to around 17%, but raise our FY24F contributory margin estimate from 5.8% to 6.5%. We continue to believe Zomato will find it difficult to achieve double-digit contributory margin, with high growth in the long term,” said Nomura. Restaurant commissions grow but may hit an ONDC wall In the last two years, the company was also able to improve take rates or the commissions it charges restaurants consistently. Its take rates are now close to 18%. “Broadly, with our take rates, the mission is to be competitive, and we are lower than what the competition is charging. So, as we continue to add more value to restaurant businesses, we expect some improvement in commission revenue going forward,” said Goyal. But competition is heating up in the sector. The Department for Promotion of Industry and Internal Trade’s Open Network for Digital Commerce (ONDC) has breached the territory that was hitherto dominated by Zomato along with Swiggy. On the face of it, it might seem like restaurants might be offered better terms on ONDC. While Zomato will be able to compete with ONDC on efficiency and also even overall costs – as third party deliveries might be costlier– HSBC Global Research believes that it might flatten growth. “Estimates for food delivery revenue in the long term remain largely unchanged. Our short-term estimates change slightly as we build in a marginally slower increase in take rate,” the research firm said. In spite of short-term and long-term challenges ahead, Zomato seems to have settled into its listed company status to deliver value to investors by chasing topline growth instead of customers, with discounts.

With Zomato rallying over 25% in the past month, street looks at the road ahead

<ul><li>In 2022, so far 8,000 high-networth individuals (HNI) have moved out of India. </li><li>The Indian HNI population is expected to rise by 80% by 2031, making it one of the world's fastest-growing wealth markets. </li><li>The number of billionaires in India too has been rising steadily in the last few years, as per a report by Hurun and IIFL released in September. </li></ul>After a pandemic break, the trend of millionaires moving out of their home countries, looking for greener pastures is back, says the latest report by Henley &amp; Partners, a migration consultancy. In 2022, so far 8,000 high-networth individuals (HNI) have migrated out of India. The country also ranks third in terms of HNI movements, coming only after Russia at 15,000 and China at 10,000. HNIs are individuals who have a wealth of $1 million or more. After India, Hong Kong and Ukraine lost the most millionaires at 3,000 and 2,800 respectively. However, the UK too lost 1,500 millionaires during the year, ranking seventh on the list. UAE, Australia and Singapore are the countries where millionaires chose to migrate to – at 4,000, 3,500 and 2,800 respectively. India’s making more than it’s losing Unlike in the case of other countries, the report indicates that India has less to worry about its millionaire movements. Moreso, the 8,000 people who migrated represent only 2% of India’s HNIs, whose number is at 357,000. India is also making more millionaires than it’s losing. The report expects the Indian HNI population to rise by 80% by 2031, which will make it one of the world's fastest-growing wealth markets during this period. "There is also a trend of affluent individuals returning to India and once the standard of living in the country improves, we expect wealthy people to move back in increasing numbers," it said. According to a report by <a href="https://www.businessinsider.in/india/news/india-projected-to-become-worlds-third-largest-economy-overtaking-japan-and-germany-sp/articleshow/95715786.cms">Standard &amp; Poor’s</a>, Indian households will become the greatest spenders among G20 economies, as India itself will overtake Japan and Germany to become the world’s third largest economy. Billionaires believe in India Top <keyword id="390386" type="General" weightage="20" keywordseo="indian-billionaires" source="Orion">Indian billionaires</keyword> too have been predicting that India will rise to the top in a China Plus One regime – which has immense potential to aid global manufacturing, while making a massive green transition. As per the world’s third richest man, Gautam Adani, <a href="https://www.businessinsider.in/finance/news/india-on-course-to-become-worlds-second-largest-economy-by-2050-says-gautam-adani/articleshow/95622223.cms">India will add $1 trillion to its ec</a>onomy every 12-18 months within the next decade. On the other hand, India’s second richest man, <a href="https://timesofindia.indiatimes.com/business/india-business/muke">Mukesh Ambani too believes</a> that the Indian economy will grow 13-fold to $40 trillion by 2047. The number of billionaires in India too has been rising steadily in the last few years, as per a report by Hurun and IIFL released in September. Hurun India finds 1,103 individuals with ₹1,000 crore wealth, up by 96, an increase of 62% over the last five years. As per the IIFL Wealth Hurun India Rich List 2022, 735 entrepreneurs or 67% are self-made, up from 659 last year, and up from 54% five years ago. Also, 79% or 117 of new faces for the year are self-made – indication of emerging new opportunities. UPI has been a phenomenal success and considering 80 million Indians made their first digital transaction after 2020 and 190 million are still unbanked — it’s still a breeding ground for new wealth creation, the IIFL Hurun report said. “I expect the government’s Open Network for Digital Commerce (ONDC) initiative to be a moonshot for accelerated wealth creation for entrepreneurs from retail, logistics, and tech stack that are built on/ for ONDC. EV is another ecosystem that has the potential to contribute new entrants to IIFL Wealth Hurun India Rich List,” said Anas Rahman Junaid, MD and chief researcher of Hurun India. (With inputs from ANI) SEE ALSO <a href="https://www.businessinsider.in/business/startups/article/unicorns-are-pass-cockroaches-are-the-new-favourites-of-venture-capitalists/articleshow/95734214.cms">Unicorns are passé, cockroaches are the new favourites of venture capitalists</a> <a href="https://www.businessinsider.in/business/corporates/article/tatas-mega-aviation-merger-is-poised-for-flight-but-the-skies-are-not-clear-yet/articleshow/95526116.cms">Tata's mega aviation merger is poised for flight, but the skies are not clear yet</a>

India ranks 3rd in millionaire outmigration in 2022, but it’s still churning out more millionaires than it is losing: Henley & Partners

<ul><li>Factors like demographic dividend and domestic consumption have often been cited as the engines of India’s economic growth. </li><li>Now, according to a Deutsche Bank report, India is on track to becoming a $7 trillion economy by 2030 on the back of rapid financialisation, clean energy transition and digital revolution. </li><li>India alone will account for more than a fifth (22%) of the world’s total workforce over the next decade, the report says. </li><li>India’s economic growth over the past two decades has been the second fastest amongst major countries, at an average of 7.5% per annum, only behind China’s 9.6% growth. </li></ul>India is on track to becoming a $7 trillion economy by 2030 powered by the triple engines of rapid financialisation, clean energy transition and digital revolution, according to a report by Deutsche Bank. This would mean India doubling its economy in seven years from the existing gross domestic product (GDP) of $3.5 trillion. Factors like demographic dividend and domestic consumption have often been cited as the engines of India’s economic growth. “Achieving such high growth consistently over a medium-term time frame will need more than demographics or consumption, often recognised as India’s twin strength,” said the Deutsche Bank report, while outlining the other drivers of India’s economic growth going forward. India’s economic growth over the past two decades has been the second fastest amongst major countries, at an average of 7.5% per annum, only behind China’s 9.6% growth. Doubling its economy over the next 7 years will require other growth drivers. <cmsannotation type="cmsannotation" annotationid="Rapid financialisation, thanks to JAM trinity" comment="subhead" text="Rapid financialisation, thanks to JAM trinity">Rapid financialisation, thanks to JAM trinity</cmsannotation> The JAM trinity – Jan Dhan, Aadhaar, and Mobile – has been used to not only plug subsidy leakages and provide welfare benefits directly to the eligible people, it has also driven government efforts with respect to financial inclusion. The report states that there are now 481 million beneficiaries with ₹1.89 lakh crore in deposits in bank accounts. These previously unbanked users, who now have bank accounts thanks to JAM, can also avail of loans from regulated lenders instead of loan sharks. Enabling rapid financial inclusion has also helped the government steady its revenue streams thanks to the goods and services tax (GST), which came into force in 2017. GST now contributes nearly $20 billion on average every month to government revenue. <cmsannotation type="cmsannotation" annotationid="Clean energy transition" comment="subhead" text="Clean energy transition">Clean energy transition</cmsannotation> With fossil fuels becoming less sustainable due to their costs and the impact on the environment, India’s transition to clean energy is another growth driver, according to Deutsche Bank. Household access to electricity is now at nearly 100%, while the share of biomass in India’s energy matrix has declined by more than 50%. Renewable energy sources contribute to nearly 40% of India’s total installed energy capacity, and this is projected to increase to 60% by 2030. In terms of absolute numbers, India is projected to increase its renewable energy capacity from the current 157 gigawatt to 497 gigawatt by 2030. The reduction in reliance on fossil fuels will also help India cut its trade deficit, since it is still a net importer. “Renewable energy in India promises to be an enabler of several key strategic objectives such as advancing sustainable economic development; improving energy security and mitigating climate change,” the report added. Earlier, a<a href="https://energy.economictimes.indiatimes.com/news/renewable/fossil-fuel-contributed-20-per-cent-to-indias-annual-rate-of-inflation/97966365"> report</a> by Cambridge Econometrics underlined that fossil fuel imports contributed to 20% of India’s inflation between April and May 2022. <cmsannotation type="cmsannotation" annotationid="Digital revolution" comment="subhead" text="Digital revolution">Digital revolution</cmsannotation> India’s digitisation efforts will be another critical growth driver, according to Deutsche Bank. The report cites various initiatives like the Umang super app for citizen services, Aarogya Setu, the Open Network for Digital Commerce (ONDC), and the Unified Payments Interface (UPI). “Each of these initiatives has boosted productivity, sharply reduced transaction costs and leapfrogged the country into a digital era in a way unparalleled across the world,” the report said. UPI, for instance, has 399 banks on its network and has processed 83.75 billion transactions in FY23, with a total transaction value of ₹139 lakh crore. The value and volume of transactions through UPI are also several times higher than that in China and other developed nations like the US, UK, and Japan, among others. <cmsannotation type="cmsannotation" annotationid="Putting a number to demographic dividend: India to add 22% to world’s working-age population" comment="subhead" text="Putting a number to demographic dividend: India to add 22% to world’s working-age population">Putting a number to demographic dividend: India to add 22% to world’s working-age population</cmsannotation> While things like ‘demographic dividend’ have often been talked about, the analysts at Deutsche Bank have put this into context – according to the report, India alone will account for more than a fifth (22%) of the world’s total workforce over the next decade. For context, this is over 32 times higher than the growth estimated for the US, and more than three times that projected for all of Latin America combined. On the other hand, Europe and China are projected to witness a degrowth in their working-age populations. The report has also identified certain similarities between India’s economic and demographic status of today with that of China’s back in 2007. It says that India’s median age of 28.4 years, its GDP and per capita GDP are all at the same levels as those of China’s in 2007. For context, the Chinese economy is now worth $18.3 trillion. In addition to these trends, the continued efforts to formalise the informal economy are setting the stage for India to double its economy to become the fourth largest by the end of this decade. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/fpis-offload-it-oil-gas-stocks-worth-13734-crore-in-march/articleshow/99375107.cms">FPIs offload IT, oil &amp; gas stocks worth ₹13,734 crore in March; remain net sellers of Indian stocks for 2 years running</a> <a href="https://www.businessinsider.in/business/telecom/news/telecom-companies-q4-revenue-likely-to-moderate-due-to-lack-of-significant-tariff-hikes/articleshow/99368163.cms">Telecom companies’ Q4 revenue likely to moderate due to lack of significant tariff hikes</a> <a href="https://www.businessinsider.in/finance/news/rbi-revises-indias-fy24-growth-outlook-expects-softer-inflation-on-the-back-of-lower-commodity-prices/articleshow/99290005.cms">RBI revises India’s FY24 growth outlook, expects softer inflation on the back of lower commodity prices</a>

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