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India’s Act East Policy is centered around its relations with the Association of South East Asian Nations (ASEAN) and the ASEAN-India Trade in Goods Agreement (AITIGA), which has consistently been at the core of deliberations for over a decade now. Today, all sides feel the need for a review and recast of the free trade agreement (FTA) in terms of user-friendliness and trade felicitation. Post the implementation of AITIGA in January 2010, exports between India and Asean have grown at a CAGR of 2.08% during 2010-20 while imports have grown by 4.5% during the same period. Apart from the increasing trade deficit other issues such as rules of origin, and nontariff barriers remain unresolved. Therefore the scope of review of the FTA must include: (a) Tariff reduction and elimination (b) Rationalization and streamlining of Non-Tariff Barriers which is a major barrier to Indian exports to ASEAN (c) simplified and uniform Customs procedures in India and ASEAN (d) standardization of operating procedures on Certificate of Origin (e) Economic and Technical Cooperation and (f) protection of indigenous industries for achieving Atmanirvar Bharat.

India has become home to booming online gaming industry, fostering an attractive domestic market and an ecosystem of creative people. The online gaming market grew 28% in 2021 and is expected to generate revenue of over 29,000 crores in FY 2025. But the gaming industry in India, suffers from inherent perception challenges, as some State Governments think it is gambling and led to Court intervention. The Regulation of the Industry needs more clarity for the growth to materialize from projections. We understand that the Government of India is exploring self-regulation with the industry. There are numerous examples of self-regulated industries abroad, but not much has been observed in India. Would self-regulation succeed in checking anti-trust behavior such as restricting competition creatively, using various methods such as price controls? Competing industries for consumer time such as movies and music would need a level playing field. Maybe framing of regulations by Government would help. Till that time, maybe we can continue with self-regulation.

We all know about the repeal of the proposed Farm Laws. Our point of discussion is the way ahead. The MSP for public procurement system has served the country well during the recent Covid-19 crisis as well as earlier food crises. The system is the lifeline of the Farming Community and there is a Public Distribution System (PDS) which serves nearly 80 crore beneficiaries and depend upon supplies from public procurement.  And we cannot rely upon imports to feed the nation. In view of all these MSP needs to be continued for rice and wheat, and, if possible, extend to pulses, sugar canes. At the same time, we appreciate the Income Support to marginal Farmers by Direct Benefit Transfers under the Pradhan Mantri Kisan Samman Nidhi Program. We were wondering if Direct Benefit Transfers could also be arranged for non staple food crops and linked to their cost of cultivation. It may help to keep the Food Subsidy Bill under control while supporting farmers and encouraging the production of non staple food crops.

The COVID-19 pandemic followed by the war in Europe has revealed the critical importance of Supply Chain management in navigating crises. The Supply Chain Managers need to be prepared for such situations and foster transiliency, the ability to restore some processes and change, often radically, other processes. Researchers have observed various coping strategies. Some firms mimic the changes and processes implemented by other firms, typically the industry leaders. Some firms managed resources to alter the product mix and there was a mad rush to produce masks and sanitizers during the heydays of pandemic. Following the energy crises there is a rush for Renewable Energy products like E-Vehicles. The firms having structural inertia, unable to make the necessary shift, collapsed. Typically resource strapped small firms are affected and the Governments across the world structured schemes including the  Emergency Credit Line Guarantee Scheme (ECLGS) for SMEs in India which  has been a major game changer in this respect. Competitors became friends to retain customers - this cooperation between airlines to jointly cover regions with reduced flights was observed as a great Supply Chain measure in Europe. Some firms tried various real options to combat the crisis - Influenza and Pneumonia vaccines were used as a substitute for Covid Vaccine to build immunity. Existing drugs like Hydroxychloroquine and Remdesivir were used as a treatment for Covid 19 with limited success.

The highest echelons of office in India have mentioned that freebies are not good for the Indian Economy. We strongly agree with this view.

Surely subsidized rations under the Public Distribution System, mid-day meals through anganwadis, and work provided through Mahatma Gandhi National Rural Employment Guarantee Act are not freebies. They are the Social Security Schemes of India. Free foodgrain under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was one of the world’s largest Food Security Programme and provide succor to millions in Covid times.

On the contrary, we need to be concerned about freebies that get announced around elections like free power, free water, quotas, etc. We are aware that State Finances are under stress. It may make better sense to focus on assured power, drinking water, and other services at cost. People will not mind paying for quality and assured services. It must be made mandatory for States to fund such subsidies from State Budget rather than burdening Utilities. It ultimately impacts the availability and quality of services as Utilities/Discoms are already under financial stress.

How should such practices be discouraged?

India’s non-fossil fuel energy capacity, including hydel and nuclear stands at close to 170 GW, @ around 41% of total electricity capacity of 403 GW. But, in India, as elsewhere in the world, renewables could not plug the energy deficit caused by reduced supplies of coal and gas. India fell back on fossil fuel and produced 778 Million Tonnes of coal in 2021–22, compared to 716 MT in the previous year. This is because thermal power is 75% of power generated in India. Hence, though we have to meet ESG coals, can we compromise our Energy Security? We do not think we can. Given the constraints, we also need to work on our renewable capacity. In June 2022, the solar capacity was at 57,705 MW against a target of 1, 00,000 MW. Similarly, Wind Power capacity was 40,788 MW against the target of 60,000 MW. Hence, we need to strike a balanced path.

The Indian Ed-Tech industry has been growing rapidly since the Covid 19 pandemic and is expected to reach $4 billion by 2025 at a CAGR of 39.77% as per a 2021 IBEF report. However, in recent times there has been lot of allegations regarding misrepresentation of deliverables and quality of content to students and their parents . As discontent rose, Industry has taken appropriate action.

It has adopted the hybrid model for better reach out to students. A self regulatory body called India Ed-Tech Consortium (IEC) has created a two tier grievance redressal mechanism and have requested each member company to appoint a grievance redressal officer. How much have you benefitted from the process as reportedly all grievances till last month have been resolved?

Is soft touch regulations the practical way forward for many upcoming sectors including the Ed-Tech?