businessline's State of the Economy Podcast

For any country, an efficient transportation network of highways, railways, ports, and airports, is essential for the movement of goods, services and people within the country and across international borders. It helps increase trade and market access while also promoting economic integration. It is crucial for the growth of the manufacturing and industrial sectors and it can create direct and indirect employment opportunities to skilled and semi-skilled people. No wonder then, the Centre is pushing for the construction of roadways across the country.

In the latest episode of the State of the Economy podcast, Rishi Ranjan Kala talks to Jagannarayan Padmanabhan, Senior Director and Global Head for Transport Logistics and Mobility, Crisil, about the issues related to the sector.

In the podcast, they talk about India’s high logistics costs and the government’s aim to reduce the cost by improving the national highway network. They also talk about the expansion of India’s national highways and financing its construction. The conversation also touches upon the importance of tolls and the possibility of implementing a pay-per-kilometer basis system.

Listen to the podcast to know more about why infrastructure connectivity can help boost economic growth and why some States outperform others when it comes to building roads.

The global rice market has been grappling with a significant production deficit, set to be the largest since 2003. Various factors, including deficient rains in India and severe floods in Pakistan, have led to tight supplies and a tightening of the market.

In this episode of the State of the Economy podcast, Charles Hart, an agri-business analyst at BMI and Fitch Solutions, explains that while there is no physical supply shortage, the deficit implies a slight tightening of the market due to a series of long-run surpluses. Rice prices have been on the rise, reaching levels not seen since the 2008 global food crisis.

However, the forecast for 2023-2024 suggests a shift back to surplus, albeit a relatively low one compared to previous years. This expectation is based on assumptions of more normal weather conditions, including a partial rebound in rice production in flood-affected areas like Pakistan.

He talks about the impact of the El Nino weather phenomenon on the rice market remains uncertain. El Nino typically brings warmer and drier conditions, which pose challenges for rice cultivation in Southeast Asia and South Asia. However, farmers may adapt by switching to less water-intensive crops. The intensity and duration of El Nino can vary, making it difficult to predict its exact impact on production.

India, one of the major players in the global rice market, is expected to see a 2 per cent increase in rice production. The country’s rice surplus is projected to grow, allowing for inventory accumulation or higher export volumes. However, recent export restrictions imposed by India and increased minimum support prices may limit its competitiveness in the global market.

Thailand, historically a leading rice exporter, has faced reports of reduced production due to expected rainfall reduction from El Nino. While this may impact the overall production, the actual yield will depend on the level of rainfall received.

Hart said that the global rice market is experiencing a significant production deficit, but the forecast suggests a return to surplus in the coming years. The impact of El Nino and export restrictions on specific countries, along with weather conditions, will play a crucial role in shaping the market dynamics.Listen in!

Host: MR Subramani; Producer: V Nivedita

______________________

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups

In this podcast episode, Dr. Ritesh Jain, Founder, Infynit, discusses the concept of de-dollarization, which refers to reducing reliance on the US dollar as the global mode of exchange. He highlights the increasing concerns about the dominance of the USD in the global financial system and how developing countries perceive it as excessive dependence and potential weaponization by the US. Jain explains that de-dollarization aims to remove the dominance of a single currency and explores the reasons why countries should consider alternative currencies.

Jain also talks about India’s role in de-dollarization through its participation in the BRICS consortium. While India has concerns about China’s intentions, it has been making efforts to strengthen ties with neighboring countries and promote the use of Indian rupees in bilateral trade. The podcast also examines the impact of Russia’s tensions on cross-border transactions and how India’s initiatives, such as the UPI (Unified Payments Interface), can disrupt the dominance of the USD.

Dr. Jain praises UPI as one of the best payment infrastructures globally and discusses how India’s focus on building trust, international cooperation, and stable financial policies can lead to the recognition of the Indian rupee as a trusted currency. However, he emphasizes that UPI’s current form may not be fully equipped to challenge the dominance of the USD on a global scale. Factors such as international adoption, currency stability, liquidity, and a robust financial infrastructure need to be in place for UPI to become a viable alternative.

Listen in!

Host: Hamsini Karthik; Producer: Jayapriyanka J

______________________

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups. 

Indian drugs and vaccines, which, as many of us know, have been part of the international healthcare landscape for a long time now, even before the Covid-19 pandemic, But while the Covid-19 emergency is over, there are many other global storms that continue to rage over trade, big geopolitical challenges, supply chain issues, quality issues, and so on.

In this episode of the State of the Economy podcast, businessline’s PT Jyothi Datta is joined by Ravi Udaya Bhaskar, the Director General of the Pharmaceuticals Export Promotion Council of India (Pharmexcil). They discuss the state of Indian drugs and vaccines in the international healthcare landscape and their ongoing challenges.

Bhaskar explains that despite falling short of the $27 billion target, India's pharmaceutical exports reached $25.4 billion in the previous year, with the largest export destinations being NAFTA, Europe, the US, and Africa. While Africa and the CIS regions experienced negative growth, Europe saw a 13.5 per cent increase, and the US recorded a 6.8 per cent growth rate.  

However, there are challenges posed by global trade issues, such as strained US-China relations, but we remain optimistic about reaching the ambitious $28 billion target for the coming year. 

Regarding recent concerns about contaminated cough syrups and other quality issues, Bhaskar emphasises that human involvement in the manufacturing process poses challenges for India's vast pharmaceutical industry. He believes that stricter adherence to good manufacturing practices (GMP) and upgraded systems are crucial. While recent guidelines and measures like testing before exports and traceability initiatives have been introduced, focusing on the root causes and holding manufacturers accountable will be more effective in maintaining quality standards, adds Bhaskar. 

Talking about the trend of regionalisation and vaccine manufacturing, Bhaskar acknowledges the growing sentiment of countries wanting to prioritise their own populations during crises. 

While localisation is important, trade and exports should not be disregarded, and countries should strive for a balance between regionalisation and global supply, says Bhaskar. Listen in.  

(Host: PT Jyothi Datta, Producer: Nabodita Ganguly)

______________________

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups. 

In this episode of the “State of the Economy” podcast, Nivedita V discusses the pressing issue of gender disparity in the Indian workforce with special guest and women’s rights activist, Dr. Valli Arunachalam, Nuclear scientist, semiconductor technology consultant and scion of Murugappa Group.

With an alarming number of 670 million women workforce being left behind in India’s growing economy, the conversation delves into the reasons behind the underrepresentation of women in corporate jobs and the challenges they face, from lower pay to casual sexism and limited career growth opportunities. Dr. Arunachalam shares her personal journey as a scientist working in male-dominated fields and her transition to becoming a passionate advocate for women’s rights.

The discussion explores the root causes of gender inequality in both society and the corporate world, emphasizing the importance of tackling patriarchal beliefs and nurturing a gender-neutral mindset. Dr. Arunachalam highlights the need for concerted efforts and sustained commitment from government, educational institutions, and corporate leadership to achieve gender parity. By tapping into the reservoir of talent among women and girls, India can accelerate economic change and strengthen social welfare.

The conversation also addresses practical solutions to address the leaky pipeline phenomenon, where women face barriers in advancing from mid-level to leadership positions. Dr. Arunachalam emphasizes the importance of addressing hurdles at home, such as childcare responsibilities, and implementing supportive policies in the workplace, including mentorship programs, skills development training, gender-blind promotions, and sensitivity training to overcome unconscious biases.

Host: Nivedita V; Producer: Jayapriyanka J

______________________

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups. 

In this episode of the State of the Economy podcast, businessline’s Amiti Sen discusses the EU's recent environment-related measures, focusing on the Carbon Border Adjustment Mechanism (CBAM) and the EU deforestation regulation, with Ajay Srivastava, a former Indian Trade Services officer and founder of the research body Global Trade Research Initiative (GTRI). 

The CBAM is a tax proposed by the EU on certain products, starting in January 2026 and gradually expanding to cover all possible products by 2034. The initial list of products includes steel, aluminium, cement, hydrogen, electricity, and fertiliser.  

The EU aims to implement this measure as part of its ambitious environmental and climate agenda. The EU already has an emission trading system in place, that sets emission limits for industrial installations and power plants.  

Companies exceeding these limits face penalties, while those performing better are rewarded. However, certain sectors, such as steel, aluminium, paper mills, and cement mills, were exempt from these regulations, leading to the concept of "carbon leakage," where polluting industries would shift production to countries with lower environmental costs.  

To address this, the EU introduced the CBAM as a tax on imports to discourage cheaper imports and ensure a level playing field. The speakers analyse the potential impact of the CBAM on Indian exports. India exports over $77 billion worth of goods to the EU annually, with steel and aluminium being the most affected products, accounting for $5.2 billion and $2.7 billion in exports, respectively. The CBAM will be implemented gradually, with data sharing between India and the EU starting on October 1, 2023. 

This will be followed by the submission of emission certificates to EU authorities. Industries are currently assessing their options and discussing strategies to meet the CBAM requirements and reduce their carbon content. The timeline and clarity of the regulations pose challenges for the industry, but discussions are ongoing at various levels to navigate the situation. Listen in.  

(Host: Amiti Sen, Producers: V Nivedita & Siddharth Mathew Cherian)

In this episode of the State of The Economy podcast, Ronendra Singh interviews Manish Raj Singhania, the President of the Federation of Automobile Dealers Associations (FADA), to discuss the challenges and the future of the Indian automobile industry.

Despite a slight decline compared to pre-COVID levels, the auto retail sales in May showed positive year-on-year growth across all vehicle categories, except for two-wheelers and commercial vehicles.

Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA) highlights several challenges faced by dealerships, including inventory management, liquidity and financing, transition to electric vehicles, and the need for digital transformation. 

The absence of a dedicated auto dealer protection act in India is also discussed, along with the importance of dealership models in the country. The impact of online sales on traditional dealer networks is explored, and online sales are still minimal in India due to the personal nature of purchasing vehicles. 

The rural market's slow recovery is identified as a major factor affecting two-wheeler sales, and the need for government support, such as reducing GST on two-wheelers, is stressed to make them more affordable. Good monsoon seasons and stable agricultural income are seen as essential for rural market recovery. 

The podcast concludes by addressing the potential influence of electric scooters on two-wheeler sales, noting a modest increase in May. 

Since 2012, successive governments at the Centre have been trying to make India a global hub for electronics and hardware equipment but have achieved limited success. For example, while the number of mobile handset and accessories factories in the country has gone up, the local value addition is only around 7-8 per cent as most of the critical components are imported. Similarly, attempts to attract investments for manufacturing semiconductors in India have so far not yielded anything concrete. 

With the demand for electronics hardware expected to rise rapidly, India cannot afford to bear a huge foreign exchange outgo on the import of electronics alone. In this context, the new PLI schemes and the Rs 75,000 crore semiconductor policy seems to be a step in the right direction. But will this be enough? Can India catch up with China to become a hardware manufacturing hub? 

In this episode of the State of the Economy podcast. businessline’s Thomas K Thomas, discusses these questions with Dr Ajai Chowdhry, Founder HCL, Chairman of EPIC Foundation, and author of ‘Just Aspire’.

Dr Chowdhry, who has been among the first to talk about promoting local manufacturing 20 years ago, believes that India is taking all the right steps but more needs to be done in terms of going up the value chain. 

He said that the onus of driving manufacturing should not rest with just the Ministry of Electronics and Information Technology but it should be a priority across all ministries. "Identify products that are required made in India, design in India and get incentives for getting them made in India," says Dr Chowdhry. Listen in.

(Host: Thomas K Thomas, Producer: V Nivedita)

--------

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.

The economic slowdown has impacted various parts of the world. In this State of the Economy podcast, Abhishek Law talks to Nidhi Marwah, Group Managing Director-South Asia and UAE and Managing Director-Global Accounts, The Executive Centre to understand how it has affected the Indian flex spaces market. 

India is not isolated from global trends but our economy has high resilience. India's large consumer base and talent pool continue to attract attention and investment. The growth drivers in India include IT services, BPO services, software services, e-commerce, manufacturing, healthcare, and flexible workspaces. 

In 2022, the Indian market contributed 15 million to the global EBITDA of the The Executive Centre, with a 31% year-on-year increase. The average occupancy of their workspaces reached around 92%, and they added 1,000 workstations to their existing markets. In 2023, The Executive Centre plans to expand further by adding five more centres in Bangalore, Hyderabad, Gurgaon, and Mumbai, totalling around 1.5 million square feet. 

Most of the flex spaces today focus on employee experience, wellness, collaboration, and technology integration. They believe that providing a comprehensive value proposition sets them apart from other workspace players. The executive centre has proven its sustainability and resilience during COVID-19, maintaining seamless operations and services. They plan to expand into tier-two cities in addition to the metros to tap into emerging markets and explore new opportunities. 

Regarding real estate investment trusts (REITs) the industry needs to mature further before implementing REITs in the workspace sector. It is still in a nascent stage and needs time to settle and establish more structured operations. The next two to three years will determine the impact of the workspace industry on commercial real estate and its contribution to the Indian economy. Hong Kong, Australia, Japan, and Southeast Asian countries have proved to be great workspaces market.  

Overall, this podcast emphasises The Executive Centre's growth in India, the importance of providing a premium workspace experience, and the outlook for the Indian market and the flexible workspace industry. 

Listen in!  

In this episode of the State of The Economy, TE Raja Simhan talks to Lalit Trivedi, former General Manager, East Central Railways about the major challenges facing rail safety in India.   

The podcast takes a look at the Balasore train accident, shedding light on the factors that contributed to its occurrence. Upgrading railways requires traffic blocks, hindering regular operations, and maintenance. Failure to schedule these blocks appropriately can lead to accidents, as witnessed recently. 

The conversation also touches upon the role of technology and training in improving rail safety. Trivedi emphasises the need for upskilling and simulators to address the shortage of skilled manpower in critical areas.

The discussion also looks at the potential for artificial intelligence in analysing the vast amounts of data generated by new railway systems and gadgets. Artificial intelligence can provide valuable insights and exception reports to help maintenance staff take necessary actions.

Join TE Raja Simhan and Lalit Trivedi as they dive into the intricacies of rail safety in India, discussing the need for balancing traffic demands, maintenance requirements, technological advancements, and adequate funding to ensure the safety of the country’s railway network.