While working with schools in Rajasthan, under a fellowship programme, in 2019, tier II educators and childhood friends Ajay Vishwakarma and Tanu Aggarwal realised that there was a serious dearth of skilled teachers and resources — both essential for quality education — for students. 

To bridge this gap, Vishwakarma and Aggarwal made it their mission to change the face of academics with a cost-effective solution that could play a key role in upgrading academic standards and ensuring quality education for all.

At the outset, the duo would record chapters in a creative and appealing fashion and share them with teachers on WhatsApp groups — a strategy that was a hit among students.

This vision paved the way for what many students today know as SunoKitaab. Launched in January 2020, the edtech startup provides academic content in the form of audiobooks and podcasts. On its website, it claims to have a compendium of more than 10K lectures in English and Hindi for students studying in Classes I to XII and the ones preparing for competitive exams.  

It is pertinent to mention here that just a few months after its launch, the startup received a major boost in its user base as Covid-19 wreaked havoc across the globe.

While on the one hand, the pandemic gave a significant thrust to many edtech business models, as everyone was forced to stay in the confines of their homes, it, on the other hand, unearthed many unique challenges for students.

For starters, the students with enough resources to study online were exposed to the harmful effects of longer screen time. In contrast, students hailing from the hinterlands of the country, or the ones with little resources to study online, lagged in their studies.    

At this point, the founders took inspiration from a music audio player, Caravaan, and launched an audio player for academic studies called ‘VidyaBox’ in 2022.

“Our academic audiobooks and podcasts bridge the gap between videos and written content, providing an accessible and engaging way to consume educational materials. We are helping students get access to valuable resources with zero screen time,” the cofounder and CEO of SunoKitaab, Vishwakarma, said.

The cofounders’ efforts to make education accessible have been well-received by both students and teachers. As a result, the startup today boasts having a user base of 2 Lakh students and 1,000 teachers. 

Not just this, SunoKitaab has successfully raised INR 20 Lakh from Startup India Seed Funds, Centre for Innovation, Incubation and Entrepreneurship (CIIE). Notably, the startup has also received immense backing from the Rajasthan government’s iStart initiative. 

“iStart programme has provided us with invaluable support, including mentors and essential infrastructure,” Vishwakarma said.

SunoKitaab’s Humble Beginnings 

At the outset, when the cofounders decided to embark on their journey to make available academic courses via audio means, they knew that the road they wished to take wouldn’t be a bed of roses as they lacked the technical skills to pursue their mission.

Another major pain point was a serious dearth of funds. However, the duo took a great leap of faith with just INR 1.5 Lakh in hand, and as they stepped forth into uncharted territory, they met Gurkaran Singh.

As the chief technology officer, Singh has played a pivotal role in building the SunoKitaab website and app.

Once the startup’s tech stack was ready, the cofounders leveraged platforms like Google and Facebook, along with content marketing campaigns to target its audience. 

“This increased our visibility and engagement, ultimately aiding in attracting and acquiring new learners for SunoKitaab,” Vishwakarma said.

Interestingly, Vishwakarma gives credit to the rise of non-music audio platforms for the success of SunoKitaab. The platforms that played a key role in inspiring the CEO to offer quality education to one and all are homegrown names like Audible Suno, Pocket FM, Khabr, and Kuku FM, just to name a few. 

In fact, Kuku FM is the closest competitor to SunoKitaab in the space. For context, Kuku FM has a range of educational content on various subjects on its platform.

A Deep Dive Into SunoKitaab’s Playbook

The non-music audio OTT approach has worked wonders for SunoKitaab to emerge in the edtech space. SunoKitaab offers a repository of audio content like recorded lectures and summaries. Their playbook has been to reduce screen time and internet dependency. 

This has made SunoKitaab a preferred platform for students who do not want to spend hours staring at computer screens for learning.

On the other hand, SunoKitaab’s VidyaBox has proved to be a game changer for students in the rural areas of the country. This is because VidyaBox is not only cost-effective but also gives access to offline learning in a creative vogue.

Vishwakarma claims that VidyaBox has been adopted by 70% of school students who do not have the internet, smartphones, or personal computers.  

The educational content provided via VidyaBox has been curated by 1,000 teachers and subject experts. The device helps students with ease of learning in different languages.

These teachers record their voices to provide educational content in VidyaBox. Post the first recording session, a team of audio editors and subject experts reviews the recorded content to ensure the sound and content quality before it’s made available on the platform/device.

Another aspect of ensuring content quality is to keep it relevant and up-to-date. For this, the startup takes regular student feedback and closely monitors school and state board syllabi.

All the recording sessions take place in the in-house studio equipped with the necessary audio equipment. This allows the startup to have full control over the content creation process.

The content can be tailored to suit the distinct needs and preferences of different students, with ongoing efforts to make it even more student-specific.

To customise the content in VidyaBox, the startup provides a form on the website to take the details of the academic needs of the students. Based on the input fed by the students, the curriculum is recorded and delivered to the students. It takes a maximum of seven days to deliver the device to the students and the costs for which are incurred by the startup. 

Vishwakarma claims that the platform has empowered many visually impaired students by providing them access to education through its audio content. He said, “Over 30,000 visually impaired students have benefited from SunoKitaab and more than 1 Lakh students in rural areas have gained access to quality education, showcasing the startup’s meaningful contribution to education.”

Moving on, the cofounders also started a fellowship in 2019 which continued after SunoKitaab’s inception. Fellows collaborate with schools to demonstrate the usage of VidyaBox across Tier II and III regions. Eligibility criteria for the fellowship require the candidate to be a graduate with strong communication skills.

The startup generates revenue by selling audio devices, app subscriptions and content creation.

What’s Next For SunoKitaab?

SunoKitaab is dedicated to expanding its audio content across various education boards in multiple regional languages. The startup’s objective is to optimise the learning journey by giving easy access to quality education.

“Audiobooks are gaining momentum as students and parents recognise their value in education. Audio offers quality content without the need for visuals,” Vishwakarma said.  

He believes that the country’s rural areas, including Tier II and Tier III cities and towns, represent a huge market for edtechs today. Not just this, even the quality of education in these areas will get a major overhaul if edtech founders shift their focus from Tier I towns and cities to these high-potential smaller regions. 

At a time when hybrid learning has become a buzzword in the edtech space, SunoKitaab is already catering to both offline and online learners. While we cannot ignore the strides that the startup has made since its inception a few years ago, there are areas that SunoKitaab can work on. 

For instance, its VidyaBox device is priced at INR 3,999, which is a lot of money for students hailing from the rural areas of the country and could defeat the founders’ vision to extend high-quality education in these regions. Realising this, the startup has partnered with Simpl for a buy now pay later option and also provides EMI options. 

As of now, it remains to be seen if the edtech will be able to secure a juicy chunk of the audiobook market, which is expected to touch $35 Bn by 2030, especially when a majority of edtech startups are looking to pivot to survive.

Disclaimer: This article is part of Inc42 and the Government of Rajasthan’s initiative to shine a spotlight on the state’s emerging startups.

The post How SunoKitaab Is Overhauling Education In India’s Tier II & III Towns With Its Audio Learning Playbook appeared first on Inc42 Media.

According to the Insurance Regulatory and Development Authority of India (IRDAI) chairperson Debasish Panda, technologies such as artificial intelligence (AI) and machine learning (ML) within the insurtech sector will be harnessed throughout the insurance value chain.

“AI algorithms combined with machine learning models and predictive analysis will be leveraged to make underwriting an essential process in the insurance industry. Process automation will help increase the speed of traditional processes that require manual intervention. Further, conversational AI will be harnessed in the insurance industry throughout the value chain and will help customers by assisting them during various stages of insurance procurement,” said Panda.

Panda was speaking during a session at the Global Fintech Festival, 2023.

The IRDAI chairperson also noted that products such as smart contracts, parametric triggers and decentralised insurance would be the future of insurtech in India. 

“Accessibility, availability, awareness, choiceness, healthy competition all led by technology is the way forward,” he added.

Panda also said that the sector regulator was anticipating a future where insurers can manage significant data sources, harnessing quantum computing to revolutionise risk assessment and decision-making, thereby significantly improving the lifecycle.

India’s insurtech segment has minted unicorns such as Policybazaar, Acko and Digit, alongside soonicorns such as Turtlemint and is set to reach a market opportunity of $307 Bn by 2030, growing at a CAGR of 17% between 2022 and 2030, according to an Inc42 report.

The sector regulator also is working to improve the sector’s adaptability and responsiveness to ultimately improve the insurance life cycle.

“IRDAI is actively pursuing reforms in the sector to enhance its adaptability and responsiveness. We are currently at a juncture marked by personalised offerings and shifting consumer preferences,” Panda said, adding that the regulator is exploring flexible, do-it-yourself insurance products, leveraging advisory technologies and digital assistants.

Panda’s comments come as India has witnessed a sharp increase recently in adoption across multiple products in the country. For instance, ever since the COVID-19 pandemic, there has been a rise in health-related policies in India. 

The year 2020 alone witnessed a 40% increase in health insurance premium collections during the year, per a Forbes report. Further, a report by Mordor Intelligence indicated that while the health insurance market in India was growing at a CAGR of 24%, the growth rate reached 34% during the pandemic.

Despite this, penetration in India stands at around 5% of the population, comparable to other financial products such as credit cards.

To improve the situation, the IRDAI launched the ‘Insuring India by 2047’ scheme in November 2022, “where every citizen has an appropriate life, health and property insurance cover and every enterprise is supported by appropriate insurance solutions and to make Indian insurance sector globally attractive.”

The plan includes introductions of a regulatory sandbox, solvency norms for general and life insurers and an increase in tie-up limits for intermediaries, among other initiatives.

The post AI/ML Will Deliver Value Across Insurance Value Chain: Debasish Panda appeared first on Inc42 Media.

Inc42 is set to organise an invite-only, in-person workshop on angel investing in Jaipur, Rajasthan, on September 20. To be held in partnership with the government of Rajasthan, the workshop will host leading founders and investors who will share their experiences and discuss their investment thesis with 100-plus attendees. 

Known for its rich cultural heritage and historic landmarks, Rajasthan has carved a new identity for itself in India’s business landscape.The state boasts a robust startup ecosystem, with over 3,700 startups registered under the Department for Promotion of Industry and Internal Trade (DPIIT).

Several key factors have contributed to Rajasthan’s growing startup prominence, including a supportive government policy framework, a strong talent pool and a favourable business environment.

In recent years, both domestic and global venture capitalists (VCs) have made bold investment bets on Rajasthan’s startups and have yielded promising returns. Among the standout success stories are unicorn CarDekho backed by Peak XV Partners, Info Edge-backed healthtech startup MedCords and Faering Capital-backed fintech startup Finova Capital. 

These ventures are just the tip of the iceberg as capital inflow in Rajasthan has outpaced more established startup hubs like Delhi NCR and Mumbai, according to Inc42’s research. 

Our research highlights the vast potential of the state’s startup landscape and the growth avenues that have yet to be explored. 

With this workshop, we aim to equip entrepreneurs and potential angel investors in the state with the strategic know-how required to tap into Rajasthan’s vibrant startup environment.

Note: This workshop is entirely free of charge. As this is an invite-only workshop, Inc42 will carefully review applications and select participants through a rigorous vetting process.

Learn The Art Of Angel Investing From Industry Veterans

In recent years, Rajasthan’s angel investor groups such as Marwari Catalysts and Rajasthan Angel Innovators Network (RAIN) have not only played a crucial role in boosting angel investments in the state but also cracked winning deals with tech startups across the country. 

With this workshop, we aim to take a step further in building the angel community in the state by bringing all stakeholders together under one roof. This will create an opportunity for them to network, collaborate and further flourish the investment landscape in Rajasthan.

The workshop is for both budding and experienced angel investors, who can expect to learn all about startup investing. At the workshop, you will learn how to develop a successful investment thesis, identify the right startups to invest in and avoid common pitfalls. 

The event will host veterans such as Anil Joshi, the founder & managing partner at Unicorn India Ventures; Anup Jain, managing partner, Orion Ventures Partners, and Tej Kapoor, managing partners, IvyCap Ventures Advisors, among xx top-tier investors. These industry top brass will share valuable insights into successfully planning your exits and the valuable lessons they have learned in the school of hard knocks.

The interactive sessions will guide you through the intricacies of startup funding like selecting industries, sourcing teams, finding ideal founders, and getting right valuations to have a seamless exit. 

Not only this, the event will conclude with a startup showcase where you can discover new startups and level up in your angel investing game.

Note: This workshop is entirely free of charge. As this is an invite-only workshop, Inc42 will carefully review applications and select participants through a rigorous vetting process.

By the end of the workshop, we aim to equip you with the basics of angel investing so that you can find your next winning deal and expand your portfolio!

Who Should Attend

The workshop offers a golden opportunity for aspiring angel investors to bet on Rajasthan’s burgeoning startup ecosystem and play a pivotal role in shaping the future of institutional investing.

We invite founders, second generation entrepreneurs, existing angel investors, executive business leaders, high-net-worth individuals (HNIs) and foreign investors to discover new partnership opportunities and unlock the true potential of network-based investing.

Don’t miss the opportunity to join an exclusive angel networking event to become a distinguished angel investor! 

Note: This workshop is entirely free of charge. As this is an invite-only workshop, Inc42 will carefully review applications and select participants through a rigorous vetting process.

The post Master Startup Investing — Join 100+ Investors At Inc42’s Angel Investing Workshop In Jaipur appeared first on Inc42 Media.

Putting its rubber stamp on the 28% GST regime, the union government on Friday (September 1) notified amendments specifying valuation methodology to be used by online gaming platforms for calculating tax liability. 

Following the GST Council’s recommendations, the Ministry of Finance notified amendments to the Central GST law for calculating the value of supply by online gaming platforms. Further clearing the air, the order stated that winnings by any player will remain tax-neutral as the entire tax is collected at the first stage itself. 

The development comes a month after the Parliament approved amendments to the Central and Integrated GST laws to levy a 28% tax on the full face value of bets for online gaming.

Reacting to the development, EY Tax Partner Saurabh Agarwal told news agency PTI that the notification is expected to effectively settle the ambiguity and uncertainty around this matter. He, however, added, “… the aspect of whether the mere deposit of money in a wallet qualifies as a supply is unclear, and may be challenged by the industry.”

This follows the GST Council’s decision to impose a 28% GST on the amount being paid at the entry level for online gaming in July this year. As the government moved ahead with its plans to solidify the levy, Indian online gaming platforms made a beeline, seeking revocation of the proposed plans. 

Despite criticism from all quarters of the gaming industry, the Centre stuck with plans and passed the amendments in the Parliament. Since then, the gaming ecosystem has been gripped by crises. 

Last month, Mobile Premier League (MPL) slashed half of its workforce to cut corners. This was followed by Hike and Spartan Poker firing employees in droves as they grappled with the tax burden. 

On top of that, Inc42 recently reported that more than 20-25% of online gaming platforms are mulling to get acquired or acquihired. An analyst even said that these startups were selling for pennies on a dollar. 

As the crisis mounts, it remains to be seen how the industry reacts to the new curveball.

The post Taxation For Online Gaming Platforms: Govt Notifies ‘Tax-Neutral’ Stance For Winners appeared first on Inc42 Media.

Prime Minister Narendra Modi has said that the Centre is mulling various sops for the country’s electric vehicle (EV) ecosystem. 

In an interview with Moneycontrol, PM Modi said the potential incentives will be offered to ensure India achieves its carbon emission targets. He also applauded the homegrown EV industry for spurring innovation in the emerging space.

“The government has been working on providing incentives for the electric vehicle industry. The industry has responded with greater innovation and the people are responding to it with greater openness to try the alternative,” the PM said.

Speaking about the Open Network for Digital Commerce (ONDC), he noted that the platform will create a level playing field for various stakeholders. Terming ONDC a futuristic initiative, PM Modi said the platform is well-poised to revolutionise the tech arena. 

“For a long time, India was globally known for its tech talent. Today, it is known for both its tech talent and tech prowess, especially in digital public infrastructure… The ONDC is a futuristic initiative that will revolutionise the tech field by creating a level playing field on digital platforms for a number of different stakeholders,” he added. 

He also said that various state-backed public digital infrastructure initiatives and platforms unveiled in the past nine years are having a ‘multiplier effect on the economy’, adding that India’s tech revolution has had both economic and deep social impact.

The comments come at a time when the government has ramped up its focus on green technologies, especially the EV space. While work is underway on a new EV policy, the Centre is also mulling incentives in the form of lower import taxes for companies setting up manufacturing bases in the country. 

Even as the EV ecosystem grapples with the fallout of the FAME-II crisis, electric two-wheeler registrations continue to see marginal uptick. Total two-wheeler EV registrations in the country rose to 58,927 units in August from 54,498 units in July.

On the other hand, the Centre has pulled out all the stops when it comes to its ambitious ONDC initiative. Built on the idea of open protocol, the network aims to break the silos related to ecommerce using an open-network methodology that is not limited to a single platform.

The government aims to onboard 900 Mn buyers and 1.2 Mn sellers through the network, directly pitting it against the likes of behemoths such as Flipkart, Amazon, Zomato, Swiggy, among others, across various sectors. 

The post Govt Working On Various Incentives For EV Industry: PM Modi appeared first on Inc42 Media.

In another major push for digital payments in the country, Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday (September 6) launched multiple new UPI products at the Global Fintech Fest 2023. 

The new offerings, built by the National Payments Corporation of India (NPCI), included credit line on UPI, near-field communication (NFC)-based offline payment modules UPI LITE X and Tap & Pay, and conversational payment products Hello! UPI and BillPay Connect. 

In a statement, the NPCI said the products aim to create an inclusive, resilient, and sustainable digital payments ecosystem in the country. The launches are in line with the central bank’s earlier announcements. 

The move is part of the NPCI’s bid to achieve 100 Bn monthly transactions in the near future and to bring more Indians into the fold of digital payments.

Lauding the UPI ecosystem, the RBI governor said it has facilitated digital payments for small merchants, leading to greater financial inclusion.

“The UPI has played a phenomenal role in the fintech revolution in India. Its success story has in fact become an international model… UPI has also spurred innovation in the fintech space, leading to the growth and development of other payment systems,” said Das while addressing the gathering. 

The event also saw NPCI advisor and IT veteran Nandan Nilekani and NPCI non-executive chairman Biswamohan Mahapatra in attendance. 

The Digital Payments Push

Making waves at the launch were two conversational payment products launched by the NPCI – Hello! UPI and BillPay Connect, which are based on human-machine interaction and are facilitated by AI-enabled transactions.

Hello! UPI allows users to give voice commands to transfer funds and input UPI PIN through the UPI app, telecom calls, and IoT devices in Hindi and English. The feature is expected to be soon rolled out in other Indian languages as well. 

The product has been built in partnership between the NPCI and Bhashini program (AI4Bharat) at IIT Madras. 

“This expansion will broaden payment accessibility for most Indians who are fluent in their native languages, providing significant benefits to senior citizens and digitally inexperienced individuals,” the NPCI said.

Meanwhile, BillPay Connect allows users to fetch and pay bills through voice commands on their smart home devices. Feature phone users or offline users can also use the product by messaging or calling a pan-India single number to fetch and pay their bills. Afterwards, they will receive an immediate call back for verification and payment authorisation. 

Credit line on UPI was the other product launched today which will enable users to avail pre-sanctioned credit lines from banks through UPI. The launch came days after the RBI allowed scheduled commercial banks to offer credit lines to their customers through UPI.

As per the NPCI, the product will expand access to credit and foster a more streamlined and digital banking ecosystem. The payments corporation expects the process of availing, connecting, and utilising credit lines to significantly expedite and will enable banks and fintechs to create new and niche digital products. 

“The initiative encompasses several key features, including the linkage of pre-sanctioned credit lines, the creation of digital credit products by banks, the establishment of interest-free credit periods and corresponding interest rates, defined schedule of charges, customer engagement channels for credit sanction requests, and the ability to link various pre-sanctioned credit lines via UPI-enabled apps for transactions,” said NPCI. 

UPI LITE X and Tap & Pay, built at the intersection of NFC and offline payments, were the other products launched today.

Through UPI LITE X, offline users can make digital payments of up to INR 500 to anyone with an NFC-enabled compatible device. Meanwhile, UPI Tap & Pay allows customers to simply tap NFC-enabled QR codes at merchant outlets to complete their payments.

Meanwhile, fintech major Paytm announced its partnership with NPCI to launch products such as credit line on UPI, Billpay Connect and UPI Tap & Pay on its app. 

“As pioneers of mobile payments, we are proud to partner with NPCI to enable the launch of innovative new features like Credit Line on UPI, Billpay Connect and UPI Tap & Pay. Bringing these offerings first to our users, we will take Paytm UPI to the next level, driving further adoption,” said a Paytm spokesperson.

The developments come just days after UPI achieved a major milestone of 1,000 Cr monthly transactions in August 2023. The slew of offerings have been introduced with an eye on scaling monthly transactions on the UPI network to 10,000 Cr in the near future. 

The post Talk & Pay: NPCI Launches New UPI Offerings With An Eye On 100 Bn Monthly Transactions appeared first on Inc42 Media.

In a major blow to online gaming startup Gameskraft, the Supreme Court on Wednesday reportedly stayed the Karnataka High Court order quashing the GST department’s show cause notice for an alleged evasion of INR 21,000 Cr.

A bench of Chief Justice of India (CJI) DY Chandrachud and Justices JB Pardiwala and Manoj Misra sought a response from Gameskraft and listed the matter for hearing after three weeks. “Do not worry…nothing is going to happen in three weeks,” the CJI orally remarked, as per a report by Bar and Bench.

CJI Chandrachud also permitted the Directorate of Revenue Intelligence of GST to file a rejoinder to the same. 

During today’s hearing, the Additional Solicitor General (ASG) N Venkatraman argued that the government approached the Supreme Court in the case as the High Court relied heavily on a judgment of a two-judge bench of the same court. 

According to the ASG, the observations made by the HC in the judgment have put a pause on other show cause notices leading to a problem for the GST department. He argued that the department has had to hold back at least 35 different show cause notices owing to the HC’s judgment.

The Gameskraft Case

In September 2022, the Directorate General of GST Intelligence (DGGI) issued a show cause notice to Gameskraft, alleging that the online gaming startup failed to pay INR 21,000 Cr in GST, the biggest such claim in the history of indirect taxation. The notice was for the period between 2017 and June 30, 2022.

Gameskraft was also accused of promoting online betting through cards and casual and fantasy games such as Rummy Culture, Gamezy and Rummy Time. Gameskraft was not issuing invoices to customers, the officials alleged at the time.

GST officials slapped a 28% tax on betting amounts of nearly INR 77,000 Cr. “GTPL (Gameskraft) was engaged in the betting by allowing its players/gamers to place bets in the form of money stakes on the outcome of card games played online,” the authorities said.

The authorities alleged that the gaming platform submitted fake/back-dated invoices and added that it was inducing its customers to bet as there was no way of returning the money once it was added to the wallet.

The company approached the Karnataka High Court challenging the show cause notice. In May 2023, the High Court quashed the show cause notice and observed that the department was picking and choosing its arguments. Following this, the GST department appealed against the judgment in the Supreme Court.

The post Blow For Gameskraft: SC Stays K’taka HC Order Quashing INR 21,000 Cr GST Notice appeared first on Inc42 Media.

RBI Deputy Governor T. Rabi Sankar has called for the creation of self-regulatory organisations (SROs) in the fintech sector. Speaking at the Global Fintech Fest 2023, Sankar stressed the need for SROs to proactively tackle key issues like market integrity, data privacy, and cybersecurity.

He pointed out that as regulatory frameworks evolve, these SROs could be instrumental in maintaining ethical practices and promoting responsible growth in fintech.

He added that a self-regulatory approach will help foster a sustainable and reputable fintech ecosystem by promoting growth while mitigating potential risks and adverse consequences.

“SROs have the potential to play a pivotal role in the fintech industry by promoting responsible practices and upholding ethical standards,” said Sankar. He believes that due to their deep understanding of the industry, fintech companies are uniquely qualified to develop and enforce rules that effectively govern the sector.

He also noted that the current regulation models may not be fully applicable to fintech companies since they are not strictly financial entities.

“Regulators and fintech firms are learning to evolve this arrangement where regulators need to know what needs to be regulated and fintech firms need to know the products it develops. The best solution for that to begin with is self-regulation,” he said.

Interestingly, in July, Sankar mentioned that the central bank is working on more regulations that will be ‘developmental’ for fintech startups. “We are working on regulations (that) would be specific to fintech entities and the fintech ecosystem,” T Rabi Sankar said at an event in Bengaluru.

Sankar’s remarks come at a time when the RBI has been actively enhancing its regulatory oversight of the fintech industry. Some of the recent initiatives include the issuance of digital lending guidelines, providing directions on the use of UPI by issuers of prepaid payment instruments (PPIs), and the release of default loss guidelines (DLG).

The post RBI Deputy Governor Bats For Enhanced Role Of SROs In Fintech appeared first on Inc42 Media.

While addressing the Global Fintech Fest in Mumbai on Tuesday (September 5), finance minister Nirmala Sitharaman appreciated the Indian fintech startups for taking the lead in tapping new to credit customers and UPI-led QR code payments. She said that fintech startups have gained significance and become more dynamic financial inclusion tools with time. 

Sitharaman said that the startups operating in the fintech space have taken up 36% of the market share of the lending business, which is the primary business for the traditional banks.

“Fintechs are reaching out to far more customers, an area that is very conventional and the domain of the banks,” the finance minister added. 

Talking about the payments sector, Sitharaman said that the fintech startups have taken up 93% of the UPI transactions share against only 7% market share left with the banks.

The FM’s comments have come at a time when the UPI crossed the 1,000 Cr monthly transaction mark in August 2023, recording transactions to the tune of INR 15.18 Lakh Cr. 

Following the release of August data, the National Payments Corporation of India (NPCI) took to Twitter (now called X) and said, “Drumroll please! UPI has just shattered records with an astonishing 10 Bn plus transactions. Join us in celebrating this incredible milestone and the power of digital payments. Let’s keep the momentum going and continue to revolutionise the way we make transactions with UPI!”

It is pertinent to note that PhonePe, Google Pay and Paytm continue to dominate the UPI arena. 

While PhonePe processed 446.14 Cr UPI transactions worth INR 7.46 Lakh Cr as of June 2023, Google Pay secured the second spot with 35% of the total number of UPI transactions worth INR 4.94 Lakh Cr. Meanwhile, Paytm accounted for 14.01% of the transactions worth INR 1.62 Lakh Cr as of June 2023. 

The post Fintech Startups Have Surpassed Banks In The UPI Realm: FM Nirmala Sitharaman appeared first on Inc42 Media.

The Reserve Bank of India (RBI) is now reportedly planning to introduce its wholesale central bank digital currency (CBDC) in the call money market. 

As per reports by multiple news agencies, an RBI official said that the central bank is now planning to go into the interbank borrowing market with CBDC. The digital currency will reportedly be used as a token for interbank borrowing or call money market.

“The purpose of wholesale CBDC has been to try out different technologies…experimenting on technology is relatively easier for the wholesale pilot because participants are related,” the official was quoted as saying by PTI.

Finance Minister Nirmala Sitharaman announced that the RBI would launch the CBDC in FY23 during her Union Budget speech last year.

The RBI began the pilot of CBDC-Wholesale (e₹-W) in November last year and picked nine banks, including the State Bank of India (SBI), Bank of Baroda, HDFC Bank, ICICI Bank, YES Bank, IDFC First Bank, and HSBC, for the pilot.

The central bank also launched the pilot for retail digital rupee (e₹-R) in December last year. It has been looking to further expand both the pilots by incorporating various use cases and features in the current fiscal year – FY24.

As per the latest PTI report, sources said the month of August saw 10.83 Cr overall CBDC transactions amounting to INR 24,000 Cr. However, currently there is no deadline as to when the pilots will end. 

As of March 31, 2023, the value of e₹-W in circulation stood at INR 10.39 Cr while the number for e₹-R was at INR 5.7 Cr.

On Monday, the State Bank of India said that it has integrated the Unified Payments Interface (UPI) with its CBDC app, ‘eRupee by SBI’, where the app users will be able to scan any merchant UPI QR code for swift transactions.

Meanwhile, the RBI is also set to showcase its various digital initiatives, including CBDC, UPI One World, RuPay, and Bharat Bill Payment System, in the financial sector at the exhibition pavilion at the G20 Summit this week.

The post RBI Eyeing Call Money Market To Expand The Scope Of CBDC appeared first on Inc42 Media.

In line with its announcement earlier this year, the Reserve Bank of India (RBI) has now allowed scheduled commercial banks to offer credit lines to their customers through the Unified Payments Interface (UPI).

The move is expected to further increase the usage and scope of the payments interface. Till now, customers could link savings accounts, overdraft accounts, prepaid wallets, and credit cards with their UPI accounts. 

“Under this facility, payments through a pre-sanctioned credit line issued by a scheduled commercial bank to individuals, with prior consent of the individual customer, are enabled for transactions using the UPI system,” the central bank said in a circular issued to the banks.

Essentially, credit line on UPI is like a BNPL product, where customers can make payments using the credit line assigned by the bank to them if they don’t have the required balance in their linked accounts/wallets.

The RBI said that the banks may stipulate terms and conditions for credit lines as per their board-approved policies. These terms may include credit limit, period of credit, interest rate, among others.

The move is part of the central bank’s efforts to increase the penetration and scope of UPI. Digital payments have grown by leaps and bounds in India over the last few years, thanks to UPI.

The RBI has been constantly making new announcements related to UPI to increase its penetration in the country. It proposed allowing credit lines on UPI after its Monetary Policy Committee (MPC) meeting in April this year. 

The RBI then said that it would reduce the cost of credit lines and help in the development of unique products for Indian markets.

There were demands from some quarters that non-banking financial companies (NBFCs), which offer credit products to retail and small businesses, should also be included under credit lines on UPI. However, the RBI hasn’t heeded to these demands.

The central bank introduced the offering after disallowing non-bank fintech players from loading their prepaid payment instruments (PPIs) with credit lines in mid 2022, which had come as a major blow to the Indian fintech players like KreditBee, jupiter, slice, and LazyPay. 

Meanwhile, the UPI ecosystem continues to show robust growth. It saw over 1,000 Cr monthly transactions in August 2023 for the first time in seven years.

Recently, RBI Governor Shaktikanta Das also proposed two new technologies for UPI – allowing conversational payments on UPI and small-ticket payments using Near Field Communication through the UPI Lite on-device wallet.

The post RBI Allows Banks To Offer Credit Lines To Customers Through UPI appeared first on Inc42 Media.

Services of platforms like Amazon, Flipkart, Swiggy, Zomato, Zepto, among others, are set for disruption in the national capital, as the Delhi Police on Monday said online delivery services, excluding medicines, will be suspended in New Delhi district during the G20 Summit.

Special Commissioner of Police (Traffic) SS Yadav said during a press conference that there have been no modifications to the traffic advisory originally issued by the police on August 25, news agency PTI reported.

“Essential services, including postal and medical services, as well as sample collections by pathology laboratories, will continue to operate throughout Delhi. However, in the New Delhi area, commercial activities will not be permitted. Online delivery services will be suspended, with the exception of medicine delivery,” he stated.

He added that valid permissions granted for essential services will be honoured.

Extensive preparations are underway in the national capital ahead of the G20 summit on September 9 and 10 in Delhi. As part of the stringent security measures, traffic diversions, restricted access to specific areas, and closures have been put in effect.

The summit is set to take place at the newly-constructed Bharat Mandapam convention centre at Pragati Maidan.

“Cloud kitchens and food deliveries, or any commercial deliveries like Amazon deliveries, will not be allowed as we have stopped commercial services in the NDMC area,” Yadav said as per another report.

Meanwhile, food delivery platforms, restaurant chains, and food services companies have appealed to the government to consider permitting food deliveries as an essential service.

In a letter addressed to the Delhi government, the National Restaurant Association of India (NRAI) has requested that food deliveries from restaurants should be allowed as was done during the COVID-19 pandemic.

“Food and groceries are essential services. These deliveries were permitted even during Covid-19 lockdowns. From a consumer convenience perspective, it will be helpful if the government would permit these services, in compliance with guidelines” Dinker Vashisht, VP, public policy at Swiggy, told Inc42.

The post G20 Summit: Ecommerce, Food Delivery Services To Be Suspended in New Delhi District appeared first on Inc42 Media.

The All India Gaming Regulator (AIGR) Foundation is currently in the process of forming a self-regulatory body (SRB) under the online gaming rules that were officially notified in April this year.

The organisation is in the process of applying with the Ministry of Electronics and Information Technology (MeitY), ET reported. The ministry is presently taking time to review the applications and assess factors such as the composition of the board members, among other things.

Taking the first step towards forming an SRB, AIGR has now registered itself as a legal entity under section 8 of the Companies Act.

Interestingly, former Indian cricketer Virender Sehwag is one of the directors of the AIGR Foundation. As Sehwag is free from any conflict of interest, he is eligible to become the director.

“He has a lot of credibility on and off the field. The government has laid down clear guidelines about qualified people from different facets of life as part of the Board, and that is what AIGR is working towards. It is still very early days,” a source said as quoted in the report.

In July, Inc42 reported that four industry bodies of the online gaming sector filed three different applications for the formation of SRBs, and MeitY would take at least three months to finalise the SRBs.

Under the online gaming rules, all online games would be determined as permissible or not by SRBs. The industry can have one or multiple SRBs, as per the rules. Gaming companies would have to be registered under one of the SRBs to offer products/services in India.

As many as 120 startups, which are primarily the members of the All India Gaming Federation (AIGF), Egaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) worked together to come up with proposals for SRBs. The applications were filed under two different collectives.

While around 100 startups associated with the AIGF worked on one SRB application, 20 startups, who are members of EGF and FIFS, collaborated for another application.

Esports Players Welfare Association (EPWA) was another industry body to file an application with the MeitY to constitute an SRB.

The post Now, AIGR Foundation Initiates Process To Form A Gaming Self-Regulatory Body appeared first on Inc42 Media.

A number of original equipment manufacturers (OEMs), under the umbrella of the India Cellular and Electronics Association (ICEA), have reportedly written a letter to the government and urged to defer the October 31 deadline for the implementation of licence mandates on the import of laptops and servers.

In the letter, written to the Ministry of Electronics and Information Technology (MeitY) Secretary Alkesh Kumar Sharma and seen by The Hindu Businessline, the ICEA called for delaying the import restrictions by at least nine months after the implementation of INR 17,000 Cr production-linked-incentives 2.0 (PLI 2.0) for manufacturing IT hardware. 

“… Realistically, nine months after the PLI for IT hardware has been launched, the government may undertake a re-assessment of the investment pipeline and the supply situation before inviting the industry to discuss whether any further policy intervention is needed at that stage,” read the letter dated August 22. 

ICEA represents the interests of industry giants such as HP, Dell, HP Enterprises, Apple, Acer, Asus, and Lenovo.

This comes weeks after the government announced import restrictions on certain electronic items such as laptops, tablets and servers over national security concerns. Citing the promotion of local hardware manufacturing in the country, the Directorate General of Foreign Trade (DGFT) directed the OEMs to procure a mandatory licence before importing such products. 

While the Centre had initially set August 3 as the date of implementation, it later deferred the deadline to October 31 after protests from the industry.

In the letter, ICEA urged the government to wait at least nine months to assess the full implication of the PLI 2.0 scheme. 

While noting that its server manufacturer members called for a relook at the proposed mandates, ICEA called on the government to ‘layer interventions’ in a way that works well for the entire industry. 

“… Overall, we will request the government to layer any intervention in a manner that works well for the industry as a whole, since individual companies are differently placed, at varying degrees of investments and products at this stage,” the letter stated. 

Meanwhile, industry sources told the publication that the situation was volatile, adding that the government was pushing for all hardware manufacturers to apply for the PLI scheme while the sword of import restrictions dangled over their heads. 

Amid the row, global as well as domestic IT hardware companies continue to make a beeline for the PLI 2.0 scheme for manufacturing IT hardware. 

Just a day ago, IT Minister Ashwini Vaishnaw said that major OEMs, including HPE, HP, Dell, Foxconn, Acer and Thomson, directly or in partnership with local companies signed up for the scheme. In total, 38 companies, including local players such as Dixon Technologies, VVDN Technologies and Netweb Technologies, applied for incentives under the scheme. 

In total, India is expected to see an investment windfall to the tune of INR 2,430 Cr from IT hardware players looking to set up a base in the country. The PLI scheme has been envisaged to promote domestic manufacturing of laptops, PCs and servers.

It is pertinent to note that the Indian market for laptops and personal computers (PCs) continues to be dominated by the likes of global companies such as Dell, HP, Acer, Samsung, and Apple, among others. 

As per a report, the homegrown laptop and PCs accounts for a market size of $8 Bn annually, with nearly 65% of the units being imported.

The post IT OEMs Urge Govt To Defer Oct 31st Deadline For Import Licensing Norms appeared first on Inc42 Media.

In a big boost to the government’s Make-In-India initiative, the Centre has received 38 applications, including 25 from domestic companies, for the PLI Scheme 2.0 for IT hardware.

According to various reports, global PC manufacturers such as Dell, Hewlett Packard, Foxconn (through a subsidiary), Asus, Acer, and Flex submitted their applications ahead of the Wednesday deadline.

Notably, Apple and Samsung are currently not part of the scheme, while the application window for the scheme closed on Wednesday night.

Among the local applicants, Dixon Technologies (India), VVDN Technologies, Optiemus Infracom, and Sahasra Electronic Solutions are some of the prominent names.

The Union Minister for Communications and IT, Ashwini Vaishnaw, stated that the scheme’s objective is to generate incremental production worth INR 3.35 Tn over the next six years.

This development comes days after the government imposed restrictions on the import of laptops and tablets.

Earlier, the Centre imposed registration mandates for importing laptops, tablets, and personal computers into the country. Companies with valid licences will be able to import such products beginning November 1.

Citing the rationale behind the move, the Minister of State (MoS) for Electronics and Information Technology Rajeev Chandrasekhar had said that the mandates were aimed at reducing import dependence and spurring domestic manufacturing of laptops and personal computers.

He also noted that the decision to restrict imports was driven by security concerns to ensure that only trusted hardware enter the country.

The Indian market for laptops and PCs is dominated by major foreign players such as Dell, Acer, Samsung, Panasonic, Apple, Lenovo and HP.

The India traditional PC market, inclusive of desktops, notebooks, and workstations, grew by 0.3% year-over-year (YoY) in 2022 to 14.9 Mn units despite a steep YoY decline of 28.5% in Q4 2022 (Oct to Dec), according to a report by International Data Corporation.

Earlier this year, India announced a $2 Bn production-linked incentive (PLI) scheme to promote domestic manufacturing of laptops, PCs, servers and related-edge computing kits. It also covers personal computers and servers.

The post HP, Dell, Lenovo Among 38 Firms To Have Applied For PLI 2.0 To Make Laptops In India appeared first on Inc42 Media.

iStart Rajasthan, the flagship startup initiative of the Rajasthan government, recently launched the iStart Launchpad and a Learning Management System (LMS) in collaboration with the Thapar Entrepreneurs Academy (TEA). The initiative aims to foster entrepreneurship within the state and empower students with a comprehensive digital education platform to nurture entrepreneurial spirit. 

Hosted on August 24 at Jaipur’s Techno Hub, the launch event was graced by Namita Thapar, an angel investor and the executive director of Emcure Pharmaceuticals. She is also the founder of TEA, an organisation committed to fostering entrepreneurship among youth.

“The online learning platform is self-paced and very interactive. Students can play quizzes and watch videos on the platform. We are also training coordinators to help them learn how to create their business pitches and make prototypes,” said Thapar, while emphasising that early years are critical for developing an entrepreneurial mindset. 

The event saw participation from over 100 startup founders, stakeholders from educational institutions and government officials.

Promoting Entrepreneurship Among Youth

The iStart x TEA LMS portal was inaugurated by chief guest Thapar and Tapan Kumar, System Analyst (JT Dir.) at DoIT&C (The Department of Information Technology & Communication, Rajasthan). 

With an aim to nurture young minds and help them achieve high-end goals, LMS is a free-to-use tool that offers students essential resources for fostering creativity and embarking on entrepreneurial journeys. From informative sessions to hands-on workshops, the LMS aims to provide a holistic learning experience to students.

“Entrepreneurship needs to be celebrated and supported more in India. We, at TEA, are looking forward to partnering with iStart to foster an entrepreneurial mindset among school students through Launchpads in all districts in Rajasthan,” said Thapar.

The event also included an interactive session led by Thapar, focusing on startup success stories, challenges, and opportunities in today’s competitive market.

The launch of the iStart x TEA LMS is a significant development for the startup ecosystem in Rajasthan. The state is already home to over 3,500 registered startups, and this step can further motivate young individuals to confidently take the entrepreneurial plunge. 

The post iStart Rajasthan Partners With Emcure’s Namita Thapar To Encourage Entrepreneurship Among Youth appeared first on Inc42 Media.

As part of its attempts to make the Unified Payments Interface (UPI) global, India is now in talks with New Zealand to introduce the homegrown payments system in the country to improve the ease of doing business, and trade and tourism between the two.

The matter was discussed during a bilateral meeting between Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Export Growth Damien O’Connor, as per a joint statement.

“Ministers welcomed early discussions between National Payments Corporation of India (NPCI) and Payments NZ regarding the Unified Payments Interface (UPI) system and agreed that both sides should continue deliberations on this issue. They agreed that introduction of UPI in New Zealand would promote ease of doing business between both the countries and promote trade and tourism as well,” the statement said.

It is important to note that India, as part of its trade relationship with New Zealand, imports logs and forestry products, wool and edible fruit and nuts, wood pulp, among others, from the country while exporting precious metals and gems, textiles, and motor vehicles, and more. 

Besides, Indian students comprise the second-largest number of international students in New Zealand.

Digital payments in India have grown by leaps and bounds since the launch of UPI. Over the last few years, the Centre has signed pacts with different nations for usage of UPI to improve cross border payments and facilitate trading and tourism.

In 2022, NPCI’s international arm signed an MoU with France-based Lyra Network for the country to accept UPI and RuPay Cards. In July this year, Prime Minister Narendra Modi said that India and France agreed to use UPI. 

Meanwhile, Bhutan, Nepal, UAE, and Canada have also adopted the UPI system in their countries. 

NPCI’s international arm is also in talks to extend the UPI services to the US, other European countries, and West Asia.

India’s UPI transactions almost reached the 1,000 Cr mark in the month of July, rising over 6.6% month-on-month (MoM) to 996 Cr. If compared with the last year, the number of transactions jumped 58% from 628 Cr in July 2022.

The post India In Talks With New Zealand To Introduce UPI In The Island Country appeared first on Inc42 Media.

The Centre will provide a grant of up to INR 50 Lakh to startups to promote technical textiles in the country.

The grant would be provided under the Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) approved by the Ministry of Textiles to make India a global leader in technical textiles, said Rajeev Saxena, joint secretary in the ministry.

Technical textiles are manufactured for their technical performance and functional properties rather than aesthetic and decorative features. They are used across industries such as automobiles, civil engineering and construction, and agriculture. The Centre has been looking to boost local manufacturing in technical textiles and launched the National Technical Textile Mission for this.

Under the new guidelines, the ministry will also provide 10% of total grant-in-aid to incubators. It has also approved a total funding of INR 151 Cr for 26 institutes for upgrading the laboratories and developing and introducing courses on technical textiles. 

IIT Delhi, NIT Jalandhar, NIT Durgapur, NIT Karnataka, NIFT Mumbai, ICT Mumbai, Anna University, PSG College of Technology, and Amity University are among the institutes which will be funded. 

Notably, the funding will primarily focus on upgradation of existing courses related to textile technology. 

“With a strong emphasis on developing the startup ecosystem in technical textiles, the guidelines focus on supporting individuals and companies to translate prototypes to technologies & products including commercialization,” the ministry said in a statement.

Saxena also said that the government has already notified two quality control orders (QCOs) for 31 technical textile products, including 19 geotextiles and 12 protective textiles, which will come into effect from October 7, 2023. 

It must be noted that commerce minister Piyush Goyal last year called for promoting startups in areas like technical textiles.

According to Statista, the technical textile industry was valued at approximately $22 Bn in FY22 and is estimated to reach a size of $309 Bn by 2047. 

The post Govt To Provide Up To INR 50 Lakh Grant To Startups To Promote Technical Textiles appeared first on Inc42 Media.

For a long time, India’s startup activity has been primarily concentrated in major metro cities like Delhi, Bengaluru, and Mumbai. In recent times, however, startups have begun to see untapped opportunities in Tier 3 and 4 cities, as well as rural regions. This shift is fueling a transformative wave of entrepreneurship in these less-explored markets.

A wave of startups are aiming to overcome long-standing barriers in rural India, such as limited educational opportunities, lack of financial access and underdeveloped infrastructure. In doing so, they provide rural consumers with convenient access to high-quality products and services. 

Yet the impact of their endeavours extends beyond just economic growth, as they are also fostering social equality by creating job opportunities in rural India.

To recognise the efforts of these startups, Rajasthan iStart held a series of in-person and virtual sessions on 22nd August 2023. Organised by the Department of IT, Rajasthan, the event served as a forum for startups, innovators and entrepreneurs to exchange their experiences and technical expertise with one another. 

The event also sought to shine a spotlight on startups that have been honoured with the Rajiv Gandhi Innovation Award. Presented by the Rajasthan government, this award recognises startups and entrepreneurs tackling challenges in rural development, agriculture, environment, healthcare, and more.

One such awardee is Frontier Markets, a Jaipur-based social commerce startup focussed on empowering women micro-entrepreneurs in rural areas. Founded in 2011 by Ajaita Shah, Frontier Markets employs a network of local women, known as Sahelis, to help rural customers buy agricultural solutions, health and homecare products, and more via its app. 

These Sahelis are digitally savvy, rural women influencers who introduce products to local communities and gather consumer feedback at the grassroots level.

In January 2023, the startup, in collaboration with the World Economic Forum, initiated the ‘She Leads Bharat’ programme aimed at empowering rural women by facilitating sustainable income opportunities for them. The initiative intends to unite corporations, NGOs, government entities and investors for the same.

“She Leads Bharat was started with an intention to create a ‘saral jeevan’ (an easy life) for rural communities by giving them access to high quality, environment-friendly, and gender-inclusive products and services at their doorsteps,” said Shah.

Shah said that Frontier Markets wants to support the progression of India’s socio-economic index through the social marketplace.

How ‘She Leads Bharat’ Benefits Rural Women 

Women from rural areas who join the app undergo digital skills training and become ‘Sahelis’ (friends). Equipped with their new digital skills, these Sahelis utilise the She Leads Bharat app to present products, assist their communities with online shopping, collect customer feedback, and create a blended physical-digital shopping experience. They serve as local ambassadors for the app’s products, ensuring that their communities reap the benefits.

The startup claimed that the products listed on the app are environment-friendly and cost-effective.

The ‘Sahelis’ also provide digital training to other women interested in launching their own businesses. This not only promotes financial independence among these women but also fosters female entrepreneurship in Rajasthan.

While the app serves as a valuable resource for women and their communities in rural areas, it’s also being utilised by the government to distribute crucial information on topics like job opportunities, agriculture, education, and healthcare to these villages.

Frontier Market claims that the She Leads Bharat programme has helped more than 35,000 women and sold 50 Mn products. According to Shah, the app has reached 1 Mn households across 5,000 villages in rural regions of Rajasthan and Uttar Pradesh.

During the event held on August 22, Shah also shared her insights and strategies for engaging with rural communities. The event was inaugurated by DoIT officials who discussed the Rajasthan government’s initiatives, such as the Indira Gandhi Smartphone Yojana, to enhance digital access for women. 

Shah discussed Frontier Markets’ hands-on involvement in the programme and how Sahelis are actively responsible for distributing smartphones within their communities.

The event concluded with a Q&A session featuring three Frontier Markets’ ‘Sahelis’ who discussed how the partnership with Frontier Markets had impacted their lives and given them recognition in society.

The post How This Jaipur Based Startup Is Digitally Empowering Rural Women appeared first on Inc42 Media.

Lithium-ion (Li-ion) battery and cell manufacturer Log9 Materials’ production at its Bengaluru unit may take a hit due to the late arrival of Chinese experts in India on account of delays in their visa process. 

Speaking to Inc42, Log9 cofounder and director Pankaj Sharma said that India doesn’t manufacture any of the equipment needed for building cells. Most of these are developed in some European countries, China, and South Korea. Hinting at the lower price for the Chinese equipment, he said the country is the go-to place for Indian cell manufacturers.

“The equipment need upgradation, changes in software parameters, customisation of the software, and more such maintenance. For these, the developers of these machines need to work with engineers here to help them set those up,” he said.

“However, these Chinese engineers are not able to come to India because the government is not processing their visas at all,” Sharma said, adding delay in granting visas will not only impact Log9 but the entire cell manufacturing sector.

Last month, a few other reports documented how the strict approval process for granting visas to Chinese nationals was hurting Indian businesses. In fact, the India expansion plans of some Chinese tech players have also been impacted by the same.

Reuters was the first to report on the developments around Log9. As per the news agency’s report, an Indian government official said earlier this month that some domestic manufacturers who rely on Chinese expertise have sought faster approval for visa applications of their vendors from China. 

The development comes at a time when the relations between the two countries have taken a hit due to the ongoing border stand-off. Amid this, India has also increased the scrutiny of Chinese investments in the country.

Besides, the Indian government has also taken various measures to boost investment and manufacturing in the country to reduce dependence on China for raw materials and finished goods and establish the nation as a major manufacturing hub in the world.

The Indian government came out with a Production Linked Incentives (PLI) scheme for domestic manufacturing of advanced chemistry cells (ACC) in order to achieve a manufacturing capacity of 50 Giga GWh. It set a budgetary outlay of INR 18,100 Cr for the same. 

In March this year, Ola Electric, Rajesh Exports, Hyundai Global Motors Company, and others won the bid for the PLI scheme. The Bhavish Aggarwal-led EV player is setting up facilities and is in talks with global suppliers for cell manufacturing.

“By blocking Chinese engineers, we are not serving the purpose, which is to make India Atmanirbhar. The root to Indianisation is to start to build with what is available from China, bring it to India, start building it, and then acquire that indigenised capability where a few years down the line we wouldn’t need any help from China,” Sharma added.

On the other hand, Log9 is one of the pioneering Li-ion cell manufacturers in India – a fast-growing electric vehicle (EV) market that heavily depends on China for Li-ion cells and batteries.

Log9, founded in 2015 by Dr. Akshay Singhal, Kartik Hajela and Pankaj Sharma, launched the country’s first commercial Li-ion cell manufacturing facility at its campus in Bengaluru in April this year. Its commercial Li-ion cell manufacturing line has an initial capacity of 50 MWh.

So far, its batteries have powered vehicles of EV manufacturers such as Quantum Energy and Hala Mobility as well as the electric fleet of last-mile logistics companies including Maersk and Blue Dart.

Sharma also said that Log9 has sold over 1,000 battery units so far in 2023. As of now, its battery manufacturing unit is not impacted by the Chinese visa issue as equipment used for batteries are imported from elsewhere and Log9 cells are not yet used in the batteries that are currently in production.

Log9 raised $40 Mn in a mix of equity and debt in its Series B funding round led by Amara Raja Batteries and Petronas Ventures earlier this year.

The post Log9 Says Delay In Granting Visa To Chinese Experts May Hit Its Production appeared first on Inc42 Media.

Karnataka’s Deputy Chief Minister DK Shivakumar and IT BT minister Priyank Kharge announced on Sunday (August 28) that Bengaluru is likely to get free public Wi-Fi zones by December.

This is in line with the goals of the state government underlined in Digital Karnataka. 

According to Kharge, the government is planning to set up about 5,000 free public hotspots across the city, the ET reported. “We will start talking to telecom service as well as broadband service providers,” Kharge told the publication.

In 2019, when it was first formulated, the plan was to offer free data for the first 30 minutes or an hour and charge for use beyond that. This scheme was estimated to cost about INR 100 Cr and was to be fully funded by the internet service provider Atria Convergence Technologies (ACT).

The update follows after the Centre received a proposal from industry bodies in 2019 to set up free public hotspots nationwide. Back then, the government planned to roll out 5 Mn free Wi-Fi zones across the country by 2020 and expand it to 10 Mn by 2022 under the National Digital Communications Policy of 2018.

The Centre has also been working on the BharatNet project, one of the largest rural telecom projects in the world. As of August 7, 2023, 1,96,544 gram panchayats are connected through the BharatNet project and 6,50,080 km of optical fibre cable (OFC) has been laid. 

Additionally, 6,01,026 fibre-to-the-home (FTTH) connections have been commissioned and 1,04,674 Wi-Fi hotspots have been installed to ensure last-mile connectivity in rural areas of the country, per the latest statistics.

The central government is also working on rolling out new reforms to regularise the telecom sector. The Indian government drafted the Indian Telecommunication Bill, 2022.

While proposing the draft, the communications ministry also urged the private players to share thoughts and perspectives on the same. With this, the government planned to replace the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950.

According to Nielsen’s India Internet Report 2023, India’s internet users aged two years and above reached over 700 Mn as of December 2022. Further, the study found that the number of users aged 12 years and above grew 20% YoY to 595 Mn in 2022.

The post Bengaluru To Get 5,000 Free Public Wifi Hotspots By December appeared first on Inc42 Media.

In an ongoing effort to curb illegal online gambling platforms, the Enforcement Directorate (ED) has attached INR 5.87 Cr from several individuals and entities under the Prevention of Money Laundering Act, 2002.

In a press statement on Sunday (August 27), ED said it initiated an investigation following an FIR registered by Vivek Nagar Police Station in Bengaluru based on a complaint received from the office of Directorate General of Goods and Services Tax Intelligence (DGGI), Bengaluru. The FIR alleged companies’ involvement in online gambling, betting and suspicious illegal activities. 

The investigation revealed that the accused two individuals, Shyamala N and Umar Farooq, had fraudulently registered multiple companies using documents of others. The duo had created 14 group entities to defraud the public by luring them into online gambling via sites such as bestartech, khelo24bet and betinexchange.

While the investigation is still underway, various government agencies have intensified their crackdown on domestic and foreign online gambling platforms.

In April, the DGGI issued notices to 38 such platforms for allegedly laundering money and tax evasion. Authorities have pegged the quantum of tax evasion at around INR 12,000 Cr for the period between April 2019 and November 2022.

Earlier in the year, India banned 138 offshore betting platforms. In an order issued on February 5, the Ministry of Home Affairs (MHA) directed the Ministry of Electronics and Information Technology (MeitY) to ban and block 232 apps that either originate or have links to China. Among these were 138 betting and 94 online lending apps. 

Indian states have also moved their separate legislation to ban online gambling. Tamil Nadu, for instance, passed a new law to ban online gambling after the Madras High Court struck down its 2021 law.

Additionally, the Ministry of Information and Broadcasting (MIB) issued advisories in June and July to restrict outdoor and media advertising related to betting and gambling platforms.

The post Online Gambling Crackdown: ED Seizes INR 5.87 Cr From 14 Companies appeared first on Inc42 Media.

Addressing the B20 Summit India 2023, Prime Minister Narendra Modi called for a global framework on cryptocurrencies and the ethical usage of artificial intelligence (AI).

“There is a challenge associated with cryptocurrencies. In this matter, a maximum integrated approach is needed. I think there is a need for preparing a global framework which should take care of the interests of all stakeholders,” the Prime Minister said.

The Prime Minister’s remarks align with previous statements from the cabinet ministers and the sector regulator — Reserve Bank of India (RBI) on crypto. The latter has also been advocating for a complete ban on cryptocurrencies in India, though it has also launched the Central Bank Digital Currency (CBDC).

Further cryptocurrency legislation introduced by the Modi regime encompasses a tax deducted at source i.e. TDS on each crypto transaction valued at INR 10,000 or more as well as a 30% tax on gains earned on crypto assets.

Crypto was also a point of discussion during a meeting of Finance Ministers and Central Bank Governors of G20 nations. India is actively working toward achieving a policy consensus on crypto assets to help establish a global regulatory framework.

PM Modi further said a similar approach to policy is also needed for AI.

The Prime Minister’s comments at the B20 Summit come in the wake of similar calls made at multiple global forums regarding AI’s development. The urgency for ethical AI development and usage has intensified, particularly with the rapid emergence of generative AI models like ChatGPT.

Recently, Brad Smith, Microsoft vice-chair and president, also spoke about India’s role in the global AI landscape. In a foreword for a Microsoft report, Smith asserted that India is ‘well positioned to help advance a global discussion on AI issues’. He said that India will be a key player in shaping global discussions on AI topics.

A recent LinkedIn report indicates that India is witnessing rapid growth in the talent pool for AI technology, ranking as the world’s fourth fastest-growing AI talent hub. According to its latest data, the number of people in India who have added AI skills to their profiles has increased 14-fold since January 2016.

During the B20 Summit Sunday (August 27th), PM Modi stated that India has emerged as the leader in the digital revolution in the era of Industry 4.0 and holds an important role in building an efficient and trusted global supply chain.

The post PM Modi Calls For Global Framework On Crypto, Ethical AI Usage At B20 Summit appeared first on Inc42 Media.

India is reportedly working on a new electric vehicle (EV) policy that would reduce import taxes for foreign automakers who commit to some local manufacturing.

The development reportedly follows a proposal by US automotive giant Tesla, which is considering entering the Indian market after its earlier tussle with the government over import tax-related issues. 

The new EV policy under consideration could allow automakers to import fully-built EVs into India at a reduced tax of 15%. Currently, the import tax is 100% for cars that cost above $40,000 and 70% for the rest, Reuters reported citing sources.

Tesla’s current best-selling Model Y starts at $47,740 in the US, before tax credits.

However, the policy is still in the initial stages of deliberation and the final tax rate could be different.

“There is an understanding with Tesla’s proposal and government is showing interest,” a government official familiar with the matter was quoted as saying.

A source also told the news agency that the lower import taxes could help Tesla sell its entire range of car models in the country, and not only the new car it wants to manufacture locally.

Tesla has been looking to enter the Indian market for years now. However, in 2021, Tesla boss Elon Musk said that though he wanted to launch the cars soon in the country, it was stalled because of the high import duties, which he claimed to be the “highest in the world”.

After a long standoff, Musk and Indian Prime Minister Narendra Modi met in the US in June this year.

“I am confident that Tesla will be in India and will do so as soon as humanly possible,” Musk told the media during the meet.

Tesla is also in talks with the Indian government for setting up a manufacturing plant in India and has reportedly leased an office space in Pune.

It is pertinent to note that a change in the EV tax policy right now could lead to an influx of global EV players entering the slow but steadily growing Indian EV market. Besides, it could also lead to a significant reduction in the cost of imported EVs.

However, this would also mean higher competition for Indian EV players like Tata Motors and Mahindra, who are trying to build the culture of vehicle electrification in the country.

The report cited a source as saying that the Centre is moving slowly on the policy proposal keeping in mind that such a drastic reduction of taxes on imported EVs could disrupt the market. 

“This is going to go through a lot of deliberations even though (the) government is keen on getting Tesla. That’s because of the impact on domestic players,” the official was further quoted as saying. 

It must be noted that the Indian government has been focusing on boosting local manufacturing for EVs and their components in the country for the last few years. In the last year or so, it also penalised several escooter players and reframed the FAME-II subsidy policy on finding over a dozen of them largely importing the parts and not manufacturing them domestically.

Despite FAME-II disruptions, the electric two-wheeler market has grown significantly since 2022. However, electric cars are still less than 2% of the total car sales in the third-largest automotive market in the world.

Currently, international players like MG Motor, Renault SA, Nissan, Volkswagen, and BYD are among the leading players in the electric car market in the country.

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