Sankunni K

As India gears up for the next general elections in 2024, the outcome holds significant implications for the nation's domestic and foreign policy agenda.

Hitachi, Toyota, Panasonic, and More Respond to Union Calls for Substantial Pay Increases

Lenovo recently unveiled its CIO Playbook 2024 — It’s all about Smarter AI, shedding light on Indian businesses' unprecedented embrace of artificial intelligence (AI) technology. According to the report, 11 per cent of the CIOs of technologically advanced nations, such as Japan and South Korea, believe that AI is just a “distraction” in organisations, while in India, the number is as low as 5 per cent. Meanwhile, in Australia, and New Zealand, 18 per cent of the surveyed CIOs consider AI a distraction in their organisations.Image: Republic (Data collated from Lenovo CIO Playbook 2024)In an exclusive interview with Republic Business, Sumir Bhatia, President, Asia Pacific Infrastructure Solutions Group, Lenovo, said he wasn't surprised to see the data as India is the world's startup capital.“The way technology is being used in India is amazing … Unfortunately, one of my colleagues fell sick, and we had to get him a doctor. In most places, it'll take about an hour. Within ten minutes digitally, he saw a doctor. Another ten minutes later, the medicine was there. End of the day, it's technology,” Bhatia said.India's AI revolutionA staggering 57 per cent of Indian CIOs believe AI to be a game-changer, and 38 per cent find it a hygiene factor in their organisations. Furthermore, 93 per cent of Indian organisations have either invested or are planning to invest in AI, underscoring the nation's proactive stance toward embracing transformative technologies.What sets India apart in the global AI landscape?According to Sumir Bhatia, India's tech prowess and innovative spirit play a pivotal role in driving AI acceptance. With a burgeoning startup ecosystem and a culture of innovation, India has positioned itself as a frontrunner in leveraging AI to drive business outcomes. Bhatia cites real-life examples, from seamless airport experiences to rapid access to healthcare services, as a testament to India's embrace of technology and its transformative impact on daily life.Lenovo's strategic engagement with IndiaIn line with India's tech-forward approach, Lenovo has made significant investments in fostering AI innovation within the country. Bhatia highlights Lenovo's AI Innovators Programme, a $100 million initiative aimed at nurturing the AI ecosystem and fostering collaboration with Indian startups. By partnering with over 50 innovators and offering more than 165 AI solutions, Lenovo is empowering Indian businesses to harness the full potential of AI and drive meaningful outcomes.Bridging India's talent gap and addressing adoption challengesIndia AI overview (Image: Lenovo CIO Playbook 2024)While India leads the charge in AI acceptance, it is not without its challenges. Bhatia acknowledges the talent gap and adoption challenges hindering AI implementation. However, he stresses Lenovo's commitment to upskilling talent and providing the necessary infrastructure to support AI adoption. Through initiatives like the AI Discover Centre of Excellance and strategic partnerships, Lenovo aims to equip Indian businesses with the tools and expertise needed to thrive in an AI-driven world.

Digital advertising growth FY24: The COVID-19 pandemic fuelled an unprecedented surge in advertising expenditure, primarily driven by digital advertising, as online consumption soared during lockdowns. However, the growth has stabilised since FY23, with a projected muted growth of 5.5-6 per cent in FY24, according to a report by Redseer.Image: RedseerFactors characterising the marketImage: RedseerShift in audience mix: Tier 2+ cities joining the digital population, leading to increased demand for regional content and platforms.Consumer preferences: Seismic shift towards digital media platforms, augmenting demand for digital advertising.Rise of digital-first brands: Emergence of numerous digital-first brands driving advertising expenditure in pursuit of customer engagement.Organised market growth: Increasing investment by brands across consumer sectors to boost customer engagement.Challenges faced in current fiscalStagnant demand: Economic slowdown and sluggish spending patterns affecting overall market growth.Global factors: Impact of rising interest rates and geopolitical tensions on advertising expenditure.Regulatory changes: Introduction of GST on certain sectors leading to a recalibration of advertising strategies.Sector-wise analysisImage: RedseereCommerce resilience: Despite a slight slowdown, eCommerce remains the most resilient sector in terms of advertising spending growth.Digital advertising spend distribution: Retail-led sectors dominate advertising expenditure, with eCommerce accounting for a significant portion.Offline sector transition: Largely offline sectors leveraging digital advertising to bridge the gap between online presence and offline operations.Future outlookProjected growth: Despite a muted FY24, digital advertising is expected to witness sustained growth driven by factors such as a growing online user base and the emergence of diverse advertising platforms.Retail media: Retail media is emerging as a key driver of digital advertising growth, offering seamless integration of product suggestions into the customer purchase journey.MSMEs and challenger platformsMSME adoption: MSMEs are increasingly leveraging digital advertising due to affordability and accessibility, contributing significantly to digital advertising spend.Challenger platforms: Emergence of retail media and other challenger platforms challenging the dominance of established players like Google and Meta, offering unique value propositions for advertisers.While FY24 may witness muted growth in digital advertising spend, the sector remains resilient, driven by evolving consumer preferences, increasing digital maturity, and innovative advertising platforms. Advertisers are adapting to these changes by diversifying their advertising strategies and embracing new opportunities offered by challenger platforms.

Fediverse Explained: Threads, Meta's rival to Elon Musk's X, has joined the Fediverse, a decentralised network of interconnected social platforms. The journey began with Threads' initial launch. Leveraging Meta's robust infrastructure, a nimble team of engineers made Threads the most successful app launch in Meta's history.Now, Threads is integrating with the Fediverse. The beta experience, currently available in select countries including the US, introduces the option for Threads users aged 18+ with public profiles to federate their profiles. This allows them to share their Threads posts across other ActivityPub-compliant servers, enabling users on those servers to follow, like, reply to, and repost their content.Image: ThreadsBuilding a federated platformBuilding a federated platform like Threads within the Fediverse presents new engineering challenges and opportunities. Designing for the Fediverse demands unique interoperability considerations and overcoming hurdles on the server side.What is the Fediverse?Image: WikipediaThe Fediverse represents a paradigm shift in social networking, offering a decentralised approach where users have greater control over their online identity and the content they engage with, regardless of the platform they choose. It's akin to email: just as you can send emails across different email providers, the Fediverse allows users to connect with people on different social networking services built on the same protocol.Still confused? The Fediverse is like this neighborhood of connected houses but in the online world. Instead of Facebook and Twitter, you have different social media platforms, each with its own style and vibe. But now, they're all linked together by a common system, so you can jump between them easily.Why is this cool?Imagine you're tired of Facebook's rules or Twitter's drama. With the Fediverse, you're not stuck. You can pack up and move your stuff to a different platform, but still keep in touch with everyone. Plus, it's like having a bigger party because you can meet people from all over, not just in one house.Participating platformsIn addition to Threads, numerous other platforms are actively participating in the Fediverse, embracing the ethos of decentralised social networking. From Pixelfed offering a free photo-sharing experience akin to Instagram, to PeerTube providing a decentralised video hosting network reminiscent of YouTube, the Fediverse is bustling with diverse communities. Platforms like Lemmy, Movim, and Prismo contribute to the rich tapestry of federated link aggregation and social networking. With each platform catering to unique needs, the Fediverse is evolving into a vibrant ecosystem of interconnected social spaces, fostering creativity, collaboration, and inclusivity.ActivityPub: The backbone of FediverseThreads leverages ActivityPub, a decentralised, open social networking protocol developed by the World Wide Web Consortium (W3C). ActivityPub facilitates seamless communication between federated servers, enabling Threads users to interact with individuals on platforms like Mastodon and WordPress without the need for separate accounts.With the beta experience, Threads users can now choose to enable sharing to the Fediverse, allowing their posts to be viewable on other ActivityPub-compliant servers. While certain types of content are not federated in this initial phase, Threads aims to expand federated features in the future, ensuring a seamless and interoperable experience for users across the Fediverse.

India's EV market: India's electric vehicle (EV) market witnessed an exponential growth in 2023, nearly doubling its sales from the previous year. This surge was driven by various factors, including heightened consumer interest, government initiatives, infrastructure development, and increasing concerns over climate change. According to data from Counterpoint Research, EVs captured 2 per cent of the overall passenger vehicle market share in India in 2023, compared to just 1 per cent the year before.Image: Counterpoint ResearchTata remains dominant playerImage: Tata MotorsTata Motors emerged as a dominant player in the Indian EV market in 2023, capturing over two-thirds of the market share, although it faced stiff competition from Mahindra & Mahindra and BYD. Mahindra & Mahindra, with its all-electric SUV XUV400, recorded an astounding 2476 per cent increase in sales, making it the fastest-growing brand in the EV segment. Similarly, BYD, despite having only two models in its lineup, saw its sales grow by over 1500 per cent in 2023, positioning itself among the top five EV brands in India.Image: Mahindra XUV400 EVLooking ahead, Counterpoint Research projects a 66 per cent increase in EV sales in 2024, with EVs expected to constitute 4 per cent of total PV sales. By 2030, EVs are anticipated to represent nearly one-third of India's PV market. Maruti Suzuki's entry into the EV market and VinFast's investment in a manufacturing facility in Tamil Nadu are expected to intensify competition and drive further growth in the EV segment.Supply chain developmentThe development of the EV supply chain is also gaining momentum, with significant investments in battery manufacturing by companies like Ola, Reliance New Energy, and ACC Energy Storage. Government initiatives such as the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) and the reduction in import duties on EVs under $35,000 to 15 per cent are expected to accelerate the adoption of EVs in India.Image: Counterpoint ResearchAccording to Liz Lee, Associate Director at Counterpoint Research, India's EV landscape is on the verge of significant growth, driven by advancements in battery technology and favorable government policies. Neil Shah, Research Vice President, believes that as the EV ecosystem matures, India will attract newer players like Tesla and Chinese brands like Xiaomi, leading to increased innovation and competition in the market. Additionally, India's potential as a hub for technology R&D and export opportunities in the smart car manufacturing ecosystem is expected to attract investments from players across the value chain.

India's AI adoption: India has emerged as a global leader in Artificial Intelligence (AI) adoption among large enterprises. This places India at the forefront of a technological revolution that could majorly define the future of businesses. However, there are also crucial challenges that India must address to fully harness the power of AI.A recent study by IBM, titled 'The 'IBM Global AI Adoption Index 2023,'' revealed that a staggering 59 per cent of surveyed Indian enterprises have actively deployed AI in their businesses. This figure, as per the report, is the “highest among the countries surveyed', suggesting a particularly enthusiastic embrace of AI by Indian corporations. Early adopters are leading the charge, with significant investments in AI research and development (R&D) and employee reskilling initiatives observed in the past two years.Image: NASSCOMTalent gapDespite this positive outlook, the IBM report also identifies roadblocks that could impede further AI adoption. The most prominent challenge is the talent gap. Companies require skilled professionals who can develop, implement, and manage AI systems effectively. A dearth of such individuals could hinder the scalability and effectiveness of AI projects.AI regulationsAnother hurdle identified by the report is the need for robust AI governance frameworks. Ethical considerations surrounding AI development and deployment are paramount. Businesses must ensure their AI systems are unbiased, transparent, and accountable. Without a well-defined framework for ethical AI governance, companies risk public distrust and potential legal ramifications.Key takeaways from IBM report59 per cent of IT professionals at large Indian organizations report having actively deployed AI, with an additional 27 per cent actively exploring the technology.There is a growing focus on generative AI, a powerful form of AI that can create new content, with nearly 60 per cent of IT professionals reporting their companies are actively using it.74 per cent of IT professionals at companies deploying or exploring AI say their company has accelerated investments in AI in the past 24 months.Easier-to-use AI tools and the need to reduce costs are the top factors driving AI adoption.To address the challenges identified in the IBM report, companies should prioritise workforce development initiatives specifically focused on AI skills. Additionally, establishing clear guidelines and frameworks for ethical AI development and deployment is crucial. By prioritising both skilling and ethics, India can ensure its AI adoption is not just rapid, but also responsible and sustainable.AI adoption indexFurther insights into India's AI journey can be gleaned from the 'NASSCOM AI Adoption Index,' a first-of-its-kind assessment framework launched by NASSCOM in collaboration with industry leaders like Microsoft, Capgemini, Ernst & Young, and EXL. This framework assesses the level of AI penetration across Indian enterprises and assigns a maturity score, providing a valuable benchmark for progress. The NASSCOM report cites the transformative potential of AI for the Indian economy, estimating a potential value addition of $500 billion to India's Gross Value Added (GVA) by 2026. This highlights the immense economic benefits that can be unlocked through widespread and responsible AI adoption.Key findings from the NASSCOM AI Adoption IndexIndia's overall AI Adoption Maturity score is 2.45 on a scale of 4, indicating an 'Enthusiast' level.While India boasts the second-highest global position in training and hiring AI talent, there is a need to translate this potential into tangible economic value.The report explores the maturity levels of different sectors, including BFSI (Banking, Financial Services, and Insurance), CPG & Retail, and Healthcare.The NASSCOM report delves deeper into industry-specific AI adoption, showcasing some of the leading adopters across various sectors:BFSI: State Bank of India, Axis Bank, HDFC Bank, Max Life Insurance, ICICI Bank, ICICI Lombard, DBSCPG & Retail: Aditya Birla Fashion and Retail, Flipkart, Bata, Lenskart, Arvind Fashions, Future Group, Reliance RetailHealthcare: Max Healthcare, Apollo Hospitals, National Centre for Disease Control, Medanta, Dr. Reddy'sThese leading adopters showcase the diverse applications of AI across Indian industries. From streamlining customer service in banking to revolutionising disease diagnosis in healthcare, AI is demonstrably transforming Indian businesses.India has positioned itself as a frontrunner in AI adoption among large enterprises. This rapid embrace of AI technology presents a wealth of opportunities for economic growth and industrial advancement. However, effectively addressing the skills gap and prioritising ethical AI development are crucial steps for ensuring the sustainability and positive impact of this technology. By investing in workforce development and establishing robust AI governance frameworks, India can leverage its early mover advantage and solidify its position as a global leader in the exciting world of Artificial Intelligence.

Starlink in India: The stage is set for the meeting between Elon Musk, the world's richest person, and Narendra Modi, the Prime Minister of the world's largest democracy. The outcomes of this meeting will be closely watched by stakeholders across the business and political spectra.In the latest news, Elon Musk-led Starlink reportedly received an in-principle nod from the Ministry of Telecommunications, a major hurdle the company has cleared after over 3.5 years. Yes, that's right. This is not the first time Starlink is attempting to enter the Indian market.The Regulatory Maze: A Hurdle from the StartWith nearly 920 million broadband subscribers, India presents a vast and dynamic market for internet access. However, traditional infrastructure struggles to reach remote areas, leaving millions without reliable connectivity. This is where Elon Musk's Starlink project enters the scene, promising high-speed internet delivered via a constellation of low-orbiting satellites. But Starlink's Indian ambitions face a complex interplay of regulatory hurdles, fierce competition, and potential geopolitical implications.Starlink's Indian story began in 2021 with an attempt to enter the market. However, it immediately encountered regulatory challenges. The biggest hurdle was obtaining a Global Mobile Personal Communication by Satellite Services (GMPCS) license from the Telecom Regulatory Authority of India (TRAI).But what is Starlink?Starlink, spearheaded by SpaceX, aims to revolutionise internet access by leveraging a massive network of satellites orbiting Earth at a much lower altitude compared to traditional geostationary satellites. This proximity translates to significantly faster speeds and lower latency, making online activities like streaming, video conferencing, and remote work possible even in the most remote locations.Simply put, Starlink aims to provide users access to the internet anytime and everywhere. Even airlines can offer passengers seamless connectivity during flights by installing Starlink hardware on aircraft.Starlink's role in the ongoing conflict in Ukraine has garnered significant attention. By providing critical internet access to Ukraine's military and civilians amid disrupted communication channels, Starlink demonstrated its potential impact on global security.Opportunities and challenges in IndiaIndia's digital landscape, while rapidly growing, suffers from stark geographical disparities. Millions in rural areas lack access to reliable internet, hindering education, healthcare delivery, and economic opportunities. Starlink, with its ability to bypass terrestrial infrastructure limitations, presents a compelling solution. It could empower rural communities, connect schools and hospitals, and enable the growth of remote businesses.One major sticking point concerns spectrum allocation – the essential radio frequencies needed for satellite communication. Disagreements exist between Starlink and established players like Reliance Jio. Starlink favours administrative allocation, while Jio argues for auctions to ensure a level playing field. Resolving this debate will be critical for Starlink's operationalisation.Starlink isn't the only player vying for a slice of India's satellite internet pie. Existing telecom giants are making strategic moves. For example, Reliance Jio has partnered with Luxembourg-based SES to offer satellite internet through its Jio Space Technology arm.Bharti Airtel has a joint venture with OneWeb, another satellite internet company, to provide similar services.These established players boast vast infrastructure networks and experience in the Indian market, posing a significant challenge to Starlink. Additionally, Amazon's Project Kuiper, though not yet operational in India, looms as a potential future competitor.Modi-Musk Rendezvous: A meeting of mindsThe upcoming meeting between Elon Musk and Prime Minister Modi on April 22, 2024 could be a pivotal moment for Starlink's Indian aspirations. Addressing regulatory concerns, reaching an agreement on spectrum allocation, and navigating the competitive landscape will be crucial.Beyond connectivityStarlink's potential impact extends beyond internet access. It has the potential to:Bridge the digital divide: By reaching remote areas, Starlink can empower communities, fostering education, healthcare, and economic opportunities.Revolutionise disaster response: Starlink's ability to provide internet access even in areas with damaged infrastructure can prove invaluable during natural disasters.Advance scientific research: Data collection and transmission from remote locations can be significantly enhanced with Starlink's capabilities.

Weekly market wrap: Indian equity markets witnessed their worst weekly performance in a month during the holiday-shortened week ended April 19, 2024. This decline is attributed to rising geopolitical tensions, particularly the escalating conflict between Iran and Israel. The global investor sentiment shifted towards safe-haven assets, pushing gold prices above $2,400 per ounce during the week.Market performanceThe benchmark indices, Sensex and Nifty, fell by 1.6 per cent and 1.7 per cent respectively. Broader markets underperformed even further, with BSE Midcap and Smallcap declining 2.2 per cent and 1.0 per cent week-over-week (WoW). Sectoral analysis by SBI Securities revealed that all sectors ended negative on the BSE, with BSE IT experiencing the sharpest decline at 4.6 per cent lower WoW.Experts point toward the significant impact of geopolitical developments on global markets. Investors will be closely monitoring these developments next week to gauge their continued influence.Earnings season and US dataThe upcoming week will also be marked by the earnings season, with Reliance Industries' March quarter results being a major focus for investors. In the US, key data points such as the 1QCY24 GDP number, core PCE index, and initial jobless claims (through April 20th) will be on their radar.In the near term, SBI Securities recommends that investors prioritise quality businesses with strong earnings growth potential to navigate market volatility. The report identifies the zone of 21,800-21,750 as crucial support for the Nifty. If this zone holds, the index is expected to experience a pullback rally to the level of 22,350-22,400, followed by 22,600 in the short term. Conversely, a sustained move below 21,750 could lead to a correction down to 21,450-21,300.Corporate highlightsInfosys' 4QFY24 consolidated revenue grew marginally year-over-year (YoY) but declined slightly quarter-over-quarter (QoQ). However, net profit witnessed significant growth.Angel One reported strong growth in revenue and profit for 4QFY24, with the highest ever client addition during the quarter.Bajaj Auto's standalone revenue grew YoY, with improved margins. The company's profit after tax (PAT) also increased YoY.Vesuvius India inaugurated a new plant to expand its manufacturing capabilities in India.TARC achieved record pre-sales figures for FY24 and 4QFY24.Brigade Enterprises reported its highest ever pre-sales figures for FY24 and 4QFY24.Landmark Cars reported growth in consolidated proforma revenue for FY24 and 4QFY24.Jio Financial Services announced a joint venture with BlackRock to undertake wealth management business in India.Ambuja Cements received additional investment from the Adani family.RVNL signed a MoU with a Turkish firm for collaboration in infrastructure projects.SJVN formed a joint venture with an Assam power distribution company for renewable energy projects.Domestic and global economic updatesIndia's wholesale inflation remained subdued in March 2024.India's trade deficit narrowed in March 2024 compared to February 2024. Merchandise exports reached record highs.Domestic air passenger traffic increased YoY in March 2024. What's ahead: Technical analysis by SBI SecuritiesImage: Nifty Chart (SBI Securities)The formation of a 'Piercing Line' candlestick pattern on the Nifty daily chart is seen as a potential bullish reversal signal, especially considering its emergence near a critical support zone, according to SBI Securities. This, combined with other technical indicators, suggests a possible pullback rally in the near term.'In addition to the bullish formation observed, the index has successfully reclaimed its 50-day EMA level (22110). Particularly notable is the daily Relative Strength Index (RSI), which has found support around the 40-42 zone and has experienced a significant rebound. It's worth highlighting that throughout this calendar year, this zone has consistently served as a robust support level for the RSI,' according to SBI Securities.

The Horlicks Saga: For decades, a comforting mug of Horlicks has been a familiar sight in Indian households. Traditionally advertised as a bedtime drink essential for a child's growth, Horlicks holds a special place in many childhood memories. However, a closer look at the brand's history and recent controversies reveals a more nuanced story about its evolution and the changing perception of 'health drinks' in India.From American origins to Indian staple (1873-1950s)Image: eBayBorn in the US in 1873, Horlicks was the brainchild of two British brothers, William and James Horlick. Initially intended as a dietary supplement for infants and invalids, the malted milk drink found its way to India with British soldiers during World War I. In the early to mid-20th century, Horlicks became a preferred beverage among affluent Indian families. Its association with British soldiers and its perceived 'richness' added to its allure.Marketing transformation and nutritional focus (1960s-2000s)Image: Junior HorlicksBy the 1960s, Horlicks began targeting a wider audience, particularly mothers. Marketing campaigns stressed the drink's nutritional value and its role in promoting children's growth and development. The brand diversified its offerings with variants for different age groups and even ventured into nutritional supplements for adults.Image: Horlicks Mother's PlusDuring this period, Horlicks' focus on 'health' became a cornerstone of its marketing strategy. Claims like 'clinically proven to help kids grow taller, stronger and sharper' became commonplace. However, the high sugar content in these drinks remained largely unaddressed.Scrutiny and rebranding (2010s-Present)Image: Horlicks LiteThe past decade has seen growing awareness about the negative effects of excessive sugar consumption. This has led to increased scrutiny of products marketed as 'health drinks.' Critics pointed out the high sugar content in Horlicks and questioned its actual nutritional value. Concerns arose about its potential contribution to childhood obesity and other health problems.Regulatory bodies like the Food Safety and Standards Authority of India (FSSAI) stepped in. E-commerce platforms were directed to stop categorising Horlicks and similar products as 'health drinks' due to the lack of a clear legal definition. This move aimed to prevent misleading advertising and promote consumer awareness.Responding to these developments, Hindustan Unilever, the current owner of Horlicks in India, rebranded the product as a 'functional nutritional drink'. This shift reflects a move away from exaggerated health claims and acknowledges the need for a more transparent product description.The story of Horlicks in India serves as a valuable case study. It highlights the importance of transparency in marketing and the need for clear regulations regarding claims about food and beverages. Furthermore, it raises questions about the responsibility of celebrities who endorse such products.