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RBI's change in project finance rules may sow the seeds of a future crisis
Prasanna Tantri
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The Reserve Bank of India's (RBI's) recent project financing guidelines have led to much cheer in the stock markets. One highlight is that the provisioning requirement on project finance is now 1 per cent, instead of 5 per cent proposed in the discussion paper issued earlier. Many lenders feared that a blanket requirement of 5 per cent, provisioning would absorb all capital and slow down lending. Thus, the RBI has avoided a short-term slowdown in economic activity. However, are these guidelines net positive from a long-term point of view, or are some tweaks necessary, given our experience of the Indian
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Business Standard
17 minutes ago
- Business Standard
India-US talks: Chouhan says govt will adjust duties to ban apple imports
Amid the ongoing India-US trade talks, Union Agriculture Minister Shivraj Singh Chouhan stated that the Narendra Modi government will adjust duties to make imported apples more expensive and encourage domestic demand. He was addressing a group of students, farmers, and scientists in Jammu and Kashmir today. Jammu and Kashmir is a hub for apple trade in India, and together with neighbouring Himachal Pradesh, accounts for almost 97 per cent of the approximately 2.4–2.5 million tonnes of apples grown domestically. The United States, in the ongoing bilateral trade talks with India, has been pressing for greater access to the domestic market for its agricultural produce, with apples being one of the items. India currently imposes around 50 per cent duty on apples imported from the US, a rate that was even higher just a few years ago. The US seeks a reduction in duties to facilitate easier access to the Indian market. He further added that instructions have been issued to the Indian Council of Agricultural Research (ICAR) to conduct more research aimed at improving the yield of apples grown in India. Chouhan also stated that he would discuss with the Railway Ministry to ensure that apples from Jammu and Kashmir are efficiently transported to all parts of India. Recently, apple growers from Jammu and Kashmir, Uttarakhand, and Himachal Pradesh had met with the chief ministers of their respective states to jointly approach the central government. Their aim was to ensure that no unreasonable changes are made to the tariff structure for apples imported from the US as part of the trade deal. "Since 2001, India's apple imports have climbed from 200,000 tonnes to 600,000 tonnes, increasing from 1.7 per cent to 22.5 per cent of domestic production. Foreign apples from the US and other countries are out-competing our domestic fruit, putting the livelihoods of more than 800,000 apple-growing households at risk," a statement from the Apple Farmers' Federation of India (AFFI), representing apple growers from Jammu and Kashmir, Himachal Pradesh, and Uttarakhand, said a few days ago.
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Business Standard
17 minutes ago
- Business Standard
India launches initiative to identify top 100 deep-tech startups
The Startup Policy Forum has launched #100DesiDeepTechs, a multi-stakeholder initiative aimed at identifying and supporting 100 leading deep-tech startups in India. Developed in collaboration with Startup India (DPIIT), MEITY Startup Hub, and IIT Madras, the program seeks to strengthen policy dialogue and advance India's deep-tech ecosystem. Applications are now open for startups across India to join this exclusive cohort. Selected startups will participate in closed-door deep-tech dialogues, engaging with policymakers, investors, industry leaders, sectoral regulators, and academic and research institutions. These discussions will culminate in a comprehensive policy whitepaper outlining sector-specific challenges and regulatory recommendations to strengthen India's deep-tech ecosystem. The initiative is accepting applications from Indian deep-tech startups. Selected participants will join closed-door policy discussions with industry and government stakeholders, leading to a whitepaper with regulatory recommendations. Focus areas include semiconductors, defence, quantum tech, green hydrogen, space, drones, EVs, biotech, robotics, advanced manufacturing, and communications. A Mentor Board consisting of founders, investors, policymakers, and experts will advise the #100DesiDeepTechs cohort, providing strategic guidance and access to networks. 'Our vision is to identify, mentor, and elevate India's most promising deep-tech startups and support them with enabling policy frameworks,' said Shweta Rajpal Kohli, President and CEO of the Startup Policy Forum. 'We are committed to supporting the government's initiatives to strengthen the deep-tech ecosystem, including the ₹1 lakh crore Research, Development, and Innovation (RDI) Scheme and the dedicated Deep-Tech Fund of Funds—both designed to scale R&D in critical sectors.' The whitepaper will be released at 'Deeptech Baithak', a forum of founders, investors, and policymakers. The event will also mark the launch of SPF's Centre for Deep-tech Policy Research, which will support ongoing policy efforts. Sanjiv Singh, Joint Secretary, DPIIT, noted that India's deep-tech capabilities are critical to the country's ambition of becoming a global innovation hub. He said, '#100DesiDeepTechs is a timely and targeted initiative that will accelerate efforts by fostering policy clarity, nurturing breakthrough ideas, and building a strong pipeline of world-class startups.' Panneerselvam Madanagopal, CEO of MeitY Startup Hub, added, 'Deep-tech is the next frontier of India's startup journey. Through #100DesiDeepTechs, we aim to identify and support startups at the intersection of science and scalable innovation, co-developing frameworks that serve the nation's strategic interests.' Prof. Thillai Rajan, IIT Madras, commented: "We are excited to collaborate on this national initiative that gives deep-tech startups a direct seat at the policy table. It aligns closely with our vision to advance high-impact research and industry partnerships." SPF has enlisted domain experts and will partner with deep-tech investors to execute the initiative. IIT-Madras will lead startup selection, Ikigai Law will draft the policy whitepaper, and Kaio will manage the initiative. Insights from the program will shape a policy roadmap for deep-tech innovation and market growth.
Indian Express
19 minutes ago
- Indian Express
When heritage travels from Kolhapur to Milan, how do we protect it?
More than 10,000 artisan families in Kolhapur, Maharashtra, along with the craftsmen in Karnataka, have been handcrafting Kolhapuri chappals for generations, using vegetable-tanned leather, intricate toe-loop braiding, and indigenous designs, earning a GI tag in 2019. Despite this rich heritage and legal recognition, Prada initially failed to credit their craftsmanship, when it unveiled strikingly similar sandals in its Spring/Summer 2026 showcase. However, this isn't the first such instance of an Indian product going global without due credit. Indian traditional heritage products have repeatedly been appropriated by global corporations, turning centuries of indigenous wisdom into battlegrounds for 'intellectual property rights'. Not the first instance A GI tag identifies goods as originating from a specific country, region or locality, where their distinctive qualities, characteristics, or reputation are essentially linked to that 'place of origin'. These attributes may arise from natural factors, such as soil, climate, temperature or raw materials, or from human elements like traditional methods of production or adherence to certain quality standards. The association between a product and its place becomes so well-known that the mention of one reminds of the other — a reference to Kolhapur in Maharashtra, for example, instantly brings to mind the humble yet durable Kolhapuri chappals. Similarly, 'Champagne' refers not just to a French district but also to its iconic sparkling wine. In India, currently, Uttar Pradesh leads with the highest number of registered GIs (79), followed by Tamil Nadu (71) and Maharashtra (55). Among categories, handicrafts dominate with 366 registrations, ahead of agricultural goods (215) and foodstuffs (52), illustrating how India's diverse geography is deeply entwined with its cultural identity. In 2021, a renowned Indian fashion designer faced similar allegations for appropriating Rajasthan's GI-tagged Sanganeri hand block printing in a collection made with a multinational fast fashion retailer. Such branding exercises, under the guise of 'globalising Indian designs', coupled with poor legal enforcement, threaten the livelihoods of handmade goods producers and risk erasing the communities preserving these invaluable traditions. In such cases, companies may argue there's no infringement since they don't explicitly claim origin from Kolhapur or Sanganer. However, under the principles of passing off or unfair trade or colourable imitation, even implied or suggested associations can constitute infringement. In Scotch Whisky Association vs Pravara Sahakari Karkhana (1992), the court restrained the defendants from passing off their whisky under the description 'Blended with Scotch' along with a symbol featuring a Scottish drummer wearing a kilt, by misappropriating the plaintiff's goodwill. The legal recourse For registrability, an indication must fall within the definition of a 'geographical indication' under Section 2(1)(e) of the 1999 Act, which identifies goods as agricultural, natural or manufactured with certain quality or characteristic attributable to their 'geographical origin'. While GI registration is not mandatory in India, it offers stronger legal protection under Section 21, enabling infringement actions by registered proprietors and authorised users. If an unauthorised party misleads the public about the product's origin, engages in unfair competition, or falsely claims that the goods come from a registered GI region, legal action may be pursued. The burden of proving the proprietor's assent lies on the accused. Chapter VIII of the GI Act, 1999, outlines penalties and offences in detail. Under this, any police officer not below the rank of Deputy Superintendent of Police may, upon reasonable satisfaction that an offence has been or is likely to be committed, search and seize — without a warrant — the goods, dies, blocks, machines, or other instruments involved. In case of offences committed by a company, Section 49 holds both the company and persons responsible for its conduct liable. Alternatively, civil remedies such as injunctions, damages, account of profits, and even an Anton Piller order may be sought. However, the scope of GI protection remains limited. GI rights are 'territorial', meaning they only apply in the country or region where protection is granted. There is no automatic international GI protection. Nevertheless, mechanisms do exist for global enforcement. First, recognition must be obtained in the country of origin — often a prerequisite — before applying for protection abroad. Other avenues include bilateral agreements (especially in sectors like wines and spirits), the WIPO Lisbon System, which allows protection across member states through a single registration, and the Madrid System, which enables GI-like protection as a collective or certification mark. What can be done? To truly safeguard traditional knowledge and support the communities behind these products, systemic reforms are essential. One promising initiative is the expansion of the Traditional Knowledge Digital Library (TKDL) to cover grassroots cultural expressions, including weaving, stitching, and dyeing traditions. Creating a publicly accessible, searchable database would help brands conduct due diligence, identify rights-holder communities, and initiate equitable collaborations. This can also lay the foundation for Access and Benefit Sharing (ABS). Inspired by Section 21 of India's Biological Diversity Act, 2002, a similar legal framework should be developed to ensure fair and equitable sharing of benefits from the use of 'traditional knowledge', either directly with rightful communities or through a general-purpose fund. Together, a widened TKDL and ABS legal framework tailored to cultural expressions can help prevent one-sided exploitation and promote fair partnerships between global brands and traditional artisans, benefiting both. Moreover, to boost visibility and sales of such products, a dedicated GI e-commerce marketplace can connect artisans directly with domestic and global buyers. Credibility in wider markets can be strengthened through attractive branding and eco-friendly packaging, supported by GI tags and QR-coded origin stories. Tourism-based promotion also holds promise. Craft trails, homestays, and live workshops in regions like Kolhapur and Madhubani can draw tourists while generating income for artisans. Public procurement by government departments for gifting and decor can ensure steady demand. Finally, simplifying GST norms and extending export incentives to artisan-led GI exports would further enhance profitability and encourage more participation in international trade. Safeguarding our traditional knowledge must go hand in hand with creating sustainable livelihoods for those who inherit, protect and pass it on. The writer is a lawyer based in New Delhi
