India - Stack, A set of APIs (Application Programming Interface) One of the best of what India has created.

 WHAT IS INDIA STACK

IndiaStack is a set of APIs (Application Programming Interfaces) that allows governments, businesses, startups and developers to utilise an unique digital Infrastructure to solve India’s hard problems towards presence-less, paperless, and cashless service delivery. 

Its founded on core principles that services can be 

1. Presenceless = capable of being authenticated from anywhere
2. Paperless = reliant on digital records
3. Cashless = truly universalising the access and usage of digital payments 
4. Consent based = allowing secure movement of data authenticated by its owners.

THE EVOLUTION OF INDIA STACK 

1. 2009 - UIDAI was created with objective to issue Unique Identification Numbers named as "Aadhaar"
2. 2010 UIDAI launched Aadhar Authentication API before the first Aadhaar was issued 
3. 2011 NPCI launched Aadhar Payments Bridge and Aadhaar Enabled Payments System which uses Aadhar Number as a central key for electronically channelizing the Government Benefits and subsidies 
4. 2012 UIDAI launched eKYC which allows business to perform Know Your Customer verification process digitally using Biometric or Mobile OTP
5. 2015 CCA launches eSign as an open API to facilitate an Aadhar holder to digitally sign a document and MeitY launches Digital Locker, a platform for issuance and verification of documents and certificates in a digital way, thus eliminating the use of physical documents 
6. 2016 NPCI launches Unified Payments Interface, the most advanced payments system in the world to revolutionise digital payments in India 
7. 2016 NeGD launches Digital Locker a platform for issuance and verification of documents and certificates in a digital way. 

(Source : The India Fintech Report 2020)

The Very Different Approach 

India has chosen to have a very different approach to open banking. Unlike many other geographies where instant payment initiatives are running parallel to open data initiatives, India flipped the equation by implicitly launching open banking payments first on what is now widely considered the best real-time payment network in the world. 

Based on the success of IndiaStack, over 20 countries have shown interest in studying and implementing a digital identity system inspired by Aadhar and the software stack built around it. 

In 2018 Singapore and India had signed a high level agreement to internationalise the IndiaStack which resulted in creation of a joint working group on Fintech to develop API based platforms in ASEAN region. 

A number of countries and international agencies such as the World Bank and Gates Foundation  have also approached India with help to build digital identity. 

 Visit the website of IndiaStack here

(Disclaimer : This blog is for educational purposes only. Please read further disclaimers at the bottom of this webpage)

Remote working trends due to Wuhan Corona Virus - excerpts from McKinsey Report

Some work remotely 

• For most workers, some activities during a typical day lend themselves to remote work, while the rest of their tasks require their on-site physical presence.

• According to a study conducted by McKinsey In the US workforce, just 22 percent of employees can work remotely between three and five days a week without affecting productivity, while only 5 percent could do so in India. 

• In contrast, 61 percent of the workforce in the United States can work no more than a few hours a week remotely or not at all. The remaining 17 percent of the workforce could work remotely partially, between one and three days per week.

Change can have far reaching consequences 

• Currently only a small share of the workforce in advanced economies - typically between 5 and 7 percent - regularly works from home.

• A shift tp 15-20 percent of workers spending more time at home could have profound impacts on economies. 

• More people working remotely means fewer people commuting between home and work every day. This could have significant economic consequences including on transportation gasoline and auto sales, restaurants and retail urban centres, demand for office real estate and other consumption patterns. 

As changes got announced, changes happened 

• As tech companies announced plans for permanent remote work options, the median price of a one-bedroom rental in San Francisco dropped 24.2 percent compared to a year ago, while in New York City, which had roughly 28,000 residents in every square mile at the start of 2020, 15,000 rental apartments were empty in September, the most vacancies in recorded history.

• Remote workers may also shift consumption patterns. Less money spent on transportation, lunch, and wardrobes suitable for the office may be shifted to other uses. Sales of home office equipment, digital tools, and enhanced connectivity gear have boomed.

Is remote work good for productivity?

• So far, there is scant clarity—and widespread contradiction—about the productivity impact. Some 41 percent of employees who responded to a McKinsey consumer survey in May said they were more productive working remotely than in the office. As employees have gained experience working remotely during the pandemic, their confidence in their productivity has grown, with the number of people saying they worked more productively increasing by 45 percent from April to May.

• With nine months of experience under their belts, more employers are seeing somewhat better productivity from their remote workers. Interviews with chief executives about remote work elicited a mixed range of opinions. Some express confidence that remote work can continue, while others say they see few positives to remote work.

(Disclaimer : This blog is for information purposes only)

What is PLI Scheme. How does it benefit the Indian Economy.

PLI Scheme 

The Union Cabinet on the 11th of November 2020 approved Production Linked Incentive (PLI) scheme worth up to Rs 1.46 lakh crore for 10 key sectors in a bid to boost India’s manufacturing capabilities and enhancing exports. The scheme will make Indian manufacturers globally competitive, attract investment and enhance exports.

The decision of the Union Cabinet was announced by information and broadcasting minister Prakash Javadekar along with finance minister Nirmala Sitharaman in New Delhi.

The aim is to give the right impetus to the Indian economy to enable the nation to plug into global supply chains, Sitharaman told reporters. There is no cap on the number of companies that will be eligible for PLI under each category for now, she added.

The manufacturing sector currently contributes 16% to India’s GDP, Javadekar said adding that the idea was to increase this share. Among sectors, auto components and automobile sectors have received the maximum incentive of ₹57,000 crore, Javadekar said.

Key Features 

It is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.

The scheme invites foreign companies to set units in India, however, it also aims to encourage local companies to set up or expand existing manufacturing units.

Benefits

1. The PLI scheme will make Indian manufacturers globally competitive,attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain.
2. India is expected to have a USD 1 trillion digital economy by 2025. Additionally, the Government's push for data localisation, Internet of Things, projects such as Smart City and Digital India are expected to increase the demand for electronic products.
3. India is the world's second largest steel producer in the world. It is a net exporter of finished steel. A PLI scheme in Specialty Steel will help in enhancing manufacturing capabilities for value added steel leading to increase in total exports.
4. Telecom equipment forms a critical and strategic element of building a secured telecom infrastructure and India aspires to become a major original equipment manufacturer of telecom and networking products.
5. The growth of the processed food industry leads to better price for farmers and reduces high levels of wastage.

(Disclaimer : This blog is for information purposes only)

How good are Covid-19 - WuhanCoronaVirus; vaccine candidates

Race for the Vaccine 

Researchers worldwide are working around the clock to find a vaccine against SARS-CoV-2, the virus causing the COVID-19 pandemic.  

To date, just two coronavirus vaccine has been approved.

1. Sputnik V – formerly known as Gam-COVID-Vac and developed by the Gamaleya Research Institute in Moscow – was approved by the Ministry of Health of the Russian Federation on 11 August. Experts have raised considerable concern about the vaccine’s safety and efficacy given it has not yet entered Phase 3 clinical trials.
2. A second vaccine in Russia, EpiVacCorona, has also been granted regulatory approval, also without entering Phase 3 clinical trials.

Operation Warp Speed 

The pandemic has created unprecedented public/private partnerships. Operation Warp Speed (OWS) is a collaboration of several US federal government departments including Health and Human Services and its subagencies, Agriculture, Energy and Veterans Affairs and the private sector. 

OWS has selected three vaccine candidates to fund for Phase 3 trials: 

1. Moderna’s mRNA-1273, University of Oxford and AstraZeneca’s AZD1222, and 
2. Pfizer and BioNTech's BNT162.

Pfizer and BioNTech were the first to release early findings on November 09 when they reported that their BNT162b2 vaccine is 90 percent effective against Covid-19. 

There was more good news yesterday when Moderna stated that their candidate is 94.5 percent effective. 

 
In both cases, the shot is administered twice over the space of several weeks. 

Despite the positive results, there is no data regarding whether the candidates prevent the coronavirus from being transmitted as well as for how long protection lasts. 

The Moderna vaccine does have an advantage over the Pfizer/BioNTech one in that it can be stored at temperatures of between 2C and 8C for 30 days, making distribution easier. 

The Pfizer/BioNTech vaccine, on the other hand, must be stored at -80C, exacerbating logistical challenges. 

 

Within OWS, the US National Institutes of Health (NIH) has partnered with more than 18 biopharmaceutical companies to accelerate development of drug and vaccine candidates for COVID-19 (ACTIV). 

COVPN and COVAX

The COVID-19 Prevention Trials Network (COVPN) has also been established, which combines clinical trial networks funded by the National Institute of Allergy and Infectious Diseases (NIAID): the HIV Vaccine Trials Network (HVTN), HIV Prevention Trials Network (HPTN), Infectious Diseases Clinical Research Consortium (IDCRC), and the AIDS Clinical Trials Group.
 

The COVAX initiative, part of the World Health Organization’s (WHO) Access to COVID-19 Tools (ACT) Accelerator, is being spearheaded by the Coalition for Epidemic Preparedness Innovations (CEPI); Gavi, the Vaccine Alliance; and WHO. 

The goal is to work with vaccine manufacturers to offer low-cost COVID-19 vaccines to countries. 

Currently, CEPI’s candidates from companies 

1. Inovio, 
2. Moderna, 
3. CureVac, 
4. Institut Pasteur/Merck/Themis, 
5. AstraZeneca/University of Oxford, 
6. Novavax, 
7. University of Hong Kong, 
8. Clover Biopharmaceuticals, and 
9. University of Queensland/CSL 

are part of the COVAX initiative. There are further candidates being evaluated in the COVAX Facility from the United States and internationally.

(Disclaimer : This blog is for information purposes only) 

Project AIRAWAT - India's AI push

What is it?

The Indian government’s think-tank NITI Aayog recently released an approach paper to set up India’s first AI-specific cloud computing infrastructure called ‘AIRAWAT’ (AI Research, Analytics and Knowledge Assimilation platform).  

This platform aims to guide the research and development of new and emerging technologies.

AIRAWAT will be established based on the recommendations made by the National Strategy for Artificial Intelligence (NSAI).

Top 5 Supercomputers in the World

Under the AIRAWAT initiative, 

1. The government plans to build a series of supercomputers with the help of microprocessor manufacturers, like NVIDIA and Intel. The supercomputer facilities will be hosted at various academic institutes like IITs, IISc, etc and these academic institutes will be at the forefront of AI research. They are also expected to act as guides and mentors for other institutes in this domain
2. Going ahead, the government will be building AI-specific compute infrastructure that will help the computing needs of Centres of Research Excellence (COREs), International Centers Transformational AI (ICRAIs) and Innovation Hubs.

AIRAWAT is being modelled after the Summit and ABCI facilities in the US and Japan, respectively. Both of which are run by state-sponsored research institutes. And like in other countries, AIRAWAT is also expected to complement our current mandate of building 70 high-performance computing facilities in India. 

Currently, India has just two supercomputers among the 500 best computers in the world — 226 of which are in China, and 113 in the US. With AIRAWAT, the hope is that India can also compete with these superpowers.

Read NITI Aayog's approach paper on AIRAWAT here

(Disclaimer : This blog is for information purposes only)

Amidst Wuhan Corona Virus - Titan reports recovery in business - How?

Thus Titan, still remains - predominantly - a jewellery company. 

More than 80% of Titan's business still comes from jewellery. 
Unlike many other companies, before the Covid Crisis the organised sector also certain mid-level players are under stress due to GST and Demonetisation. 

Selling Jewellery Online 

During the Covid crisis - the company has now decided to sell its jewellery online on Amazon and Flipkart. 

Titan said the jewellery division did very well in the second quarter, with a recovery rate of around 98 per cent (excluding sale of raw gold), compared to the revenue of the same quarter in last year.

'The recovery rate in metros that have got impacted the most by the pandemic has been improving gradually. Non-metros seem to have recovered substantially and many cities have actually recorded growth compared to last year,” it said.

Sales in September have been decent, despite the inauspicious period of 'Shradh', it said, adding that the festival season will commence about 15 days later in the current year.

The company said it continued to sell excess gold in its inventory and the quarter had a sale of Rs 390 crore of raw gold. This has helped improve the cash flow of the division significantly.

This is positive for Titan. 

Net Reduction in No. of Stores 

In the last 6 months 15 stores were added while 42 stores were closed by the division in the year to date, resulting in a net reduction of 27 stores.

Gearing for the festive season 

The company had reported an unprecedented net loss of Rs 297 crore in the April-June quarter due to the COVID-19 pandemic.

'The company's return to normalcy on the business front has been progressing well with the almost complete lifting of restrictions in phased manner over last few months across the country,” Titan said in its quarterly update.

It stated that there has been greater acceptance of the new normal amongst consumers and they have been getting back to many of their routine activities leading to a positive on the walk-ins to the stores and time spent in stores.

The company is now gearing up to gain well from the upcoming festival season which is expected to further uplift the mood of the consumers.

Titan said business through the e-commerce channel has grown significantly across all divisions.

Watches and Eyewear also recover

Titan said its watches and wearables division had a recovery rate of around 55 per cent in Q2, compared to the revenue of same quarter in last year, with a recovery of 70 per cent in September.

Eye wear division reported a recovery of 58 per cent in Q2, compared to the revenue of same quarter in last year, with a recovery of 70 per cent in September.

(Disclaimer : This blog is for information purpose only.  It os not to provide any advise or solicit any business) 

The Covid-19 (Wuhan Corona Virus) economic damage trends and the long lasting changes it creates.

The Biggest Crisis 

The Wuhan Corona Virus is the most severe economic crisis the world has faced since The Great Depression.  Which means that for almost all of us this is the worst crisis of our lifetimes.

The trends are visible 

1. The most vulnerable have borne the brunt of the economic impacts.
2. Many small business are on the brink of failure. 
3. Investment in research is slowing down as funding reduces. 
4. Digital divide has been exposed.  Those not part of the digital economy are suffering more. 
5. The future of megacities is in question. The bigger city the stricter the lockdown world over.  Work from home changes the proposition of high cost living in megacities. 
6. Embracing productivity (saving costs) as business change to become more efficient.
7. Building and "health proofing"business in changing times.  Contactless - is the new paradigm.
8. Skill and talent revolution - as more and more business aim to go digital.
9. Countries and societies invest in digital infrastructure.
10. Investments in innovation ecosystems - to build digital ecosystems - as the world changes. 

Some Examples of Indian Companies using technology

Dr. Lal Pathlabs, a pathlab chain which functions like a retailer, uses its tech based understanding of customer footfalls to decide the optimal location, size and merchandize of their collection centres and laboratories. This helps improve the profitability of these labs and collection centres, making the whole network more efficient and sustainable. For instance, if a franchisee proposes to open a collection centre at a location which Dr. Lal’s tech platform considers to be sub-optimal, the firm will readily decline such a proposal. 

Amongst NBFCs, one of Bajaj Finance’s competitive advantages is to use its proprietary consumer data to selectively target borrowers with higher credit quality, who might not have already got a substantially high rating on the commonly available credit rating agencies’ databases.

Similarly, Page Industries has recently invested in an Auto-Replenishment System (ARS) at the distributor and EBO (exclusive brand outlets) level, which moves the judgement call of merchandising, away from these intermediaries, towards Page’s centralized supply chain systems. Such tech investments have helped reduce cash conversion cycle of Page by more than 15% over the past 2 years and Page’s working capital cycle days are now less than half compared to other listed inner-wear firms in India.

(Disclaimer : This blog is for information purposes only.  It is not to solicit any kind of business or provide any type of investment advise)

The Indian OTT Streaming Market - changing times and growth.

What is OTT

An over-the-top (OTT) media service is a streaming media service offered directly to viewers via the Internet.

OTT bypasses cable and satellite television platforms, the companies that traditionally act as a controller or distributor of such content.

Changing trends

Over the past few years a chunk of the digitally savvy audience has shifted to watching entertainment, recreation and news on the internet. 

This has resulted in the entry of many players providing such content.  These players are international as well as local paving the way for a healthy competition. 

Growth Market

OTT streaming is catching up very fast.  In the developed world it has caught up by a storm.  The fast changing consumer habits have paved the way for a higher no of people now watching their favourite shows on the internet as against the traditional TV. 

This is because on the internet one is not bound by the specific time at which a particular programme is going to the shown or "aired". 

The internet based content can be viewed at one's convenience. 

A large number of households in the US are hooked to watching their favourite content on the internet. 

The Indian Market - expected to boom.

In many countries due to the Wuhan CoronaVirus crisis - there has been a growing shift towards OTT platforms - giving streaming another boost. 

The trend in India is no different.  The foreign media - international brands have gained market share as Indians watch more and more content on the internet.

The entry of telecom players like Reliance Jio and Airtel have intensified the battle. With most of the people working from home, OTT platforms have observed on an average 15% rise in consumption of both audio and video. 

This is further aided by the fact that the cost of internet usage in India - is one of the lowest in the world.

As this trend catches on, one would see OTT majors like Netflix, Amazon Prime and many others becoming a "household name".

(Disclaimer : This blog is for information purposes only)

Global Money Supply Surge, Rise of Stock Markets, What Next?

What is Money Supply? 

Money Supply is the total value of money available on an economy at a point of time.  The most standard measure of money supply is total of currency in circulation (not only notes but also money circulating through wire transfers, net banking etc.) and demand deposits (fixed deposits, other kind of deposits etc.) 

What's the use of Money Supply?

Bank regulators or central banks (in the Indian context the Reserve Bank of India) influence money supply by placing requirements on banks to hold their reserves.  They also make and change regulations (rules) for banks to lend etc. 

An increase in supply of money typically lowers interest rates.  As money supply increases banks have more money to lend and hence they can lend at lower rates. 

Businesses respond by ordering more raw materials and increasing production. 

On the other hand more money in the hands of consumers (by reduction of taxes etc.) can also increase demand.  

A rise in production and rise in consumption is perfect for economic growth.  Simple; but mostly it doesn't play out like that - there is always a time lag.  

The pandemic and increase in money supply 

As lockdown's hit the world due to the Wuhan Corona Virus, factories and offices  shut and people lost jobs.  Fearful of the economic fallout, Governments and Central banks all over the world increased Money Supply. 

Increase in Money Supply in the USA

Increase in Money Supply in Europe 

Increase in Money Supply in Japan 

Surely most Central Banks and Governments believed (and rightly so) that increase in money supply will help people tide over the difficulties of a slowdown.  

There were tax cuts, loan moratoriums , incentive schemes and even payments of monies directly in bank accounts of the poor (cash transfers). 

All this surplus money which was released however did not go immediately to buying new things (some did).  A part of this money also found its way in the stock markets. 

The Global Liquidity Rally  

As money flowed into the stock markets, the markets rallied.  A clear correlation between increase in money supply and rise of stock markets (after the sudden fall due to the sudden lockdown) is evident. 

The rise of US stock market - Dow Jones

The rise of Indian Stock Market - Nifty 

What Next?

The increase in global liquidity during the Wuhan Corona Virus pandemic has happened at a much faster pace than the 2008 crisis. 

The total money created could exceed $15 trillion or more by the middle of next year. 

However there an impending event which is going to make life difficult for traders and investors - the US elections. 

The other fallout of the pandemic is that voting will also happen by postal ballot in the current US elections - much more than the previous ones. 

This means that election results will be delayed - it takes time to count postal ballot.  This also means that there are chances of more ambiguity, charges and counter charges - regarding the efficacy and impartiality of elections. 

As it is election time is an "uncertain" time as its impossible to predict the election outcomes with accuracy.  Voter behaviour (swings) can change quickly as election nears. 

So it will only be reasonable to  expect markets to remain volatile specially when a vaccine is still some time away.    

(Disclaimer : This blog is for information purposes and not to solicit any business or provide any kind of advise)

Adani Green Energy is now the largest Solar Power producer in the world.

World's largest 

According to research firm Mercom Capital the Adani groups is now the largest solar power asset generation owner in the world.

Adani's solar portfolio is 12.32 GWac which exceeds the total installed capacity of the USA in 2019

Environmental Impact 

Solar generation energy with this capacity will displace 1.4 billion tons of carbon dioxide.

Adani established its first solar project in just 2015 and now has combined wind and solar portfolio of 14.62 Gwac.

Pan India Presence 

Its plants are present in 66 locations across 11 Indian states and its aim is tp have a portfolio os 25 GW (gigawatts) by 2025.

Solar Power in India

Solar power in India is a fast developing Industry.  According to wikipedia - the Indian government had an initial target of 20 GW (gigawatts) capacity for 2022, which was achieved four years ahead of schedule.

India has established nearly 42 solar power parks to make land available to the promoters of solar plants.

India also has the lowest capital cost - in the world - per Mw (megawatt) of installing solar power plants.

International Solar Alliance 

The International Solar Alliance proposed by India (as a founder member) is headquartered in India. 

India has also put forward the concept of "One Sun One World Grid" and "World Solar Bank" to harness abundant solar power on Global Scale. 

National Solar Potential of India 

With about 200 clear and sunny days in a year, the calculated solar energy incidence on India's land area is about 5000 trillion Kilowatt hours (kWh) per year. 

The solar energy is available in India in abundance. If harnessed properly India can save tremendous foreign exchange by importing less of fossil fuels - which currently account for a bulk of its requirements. 

This can also help in saving the environment. 

Solar Capacity in India - various years (till 31st March 2020)

The challenge for India now is to now further develop robust solar cell manufacturing Industry in India.  There are currently about 16 manufacturers  of solar cells in India.  Out of these about 8 have a capacity of more than 100Mw.  Most of the solar cells are currently imported from China. 

(Disclaimer : This blog is for education purposes only and not to solicit any business or provide any kind of advise)