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Hindustan Times
a day ago
- Business
- Hindustan Times
₹1L-crore R&D push for private sector unveiled
The Union Cabinet on Tuesday cleared a scheme with a corpus of ₹ 1 lakh crore to channel funding to the private sector for accelerating research, development, and innovation in sunrise and strategic sectors in the country. Union I&B minister Ashwini Vaishnaw during a cabinet briefing in Delhi on Tuesday. (ANI) The Research Development and Innovation (RDI) scheme, shaped through wide consultations with industry experts, will provide long-term financing or refinancing at low or interest-free rates . It will back projects that have moved beyond early-stage research and reached the prototype stage,said union minister Ashwini Vaishnaw at a press briefing on the cabinet's decisions. 'When a company moves beyond the prototype stage, it often faces the 'valley of death,' a critical phase where many innovations fail due to lack of support,' said Vaishnaw. 'This is exactly when timely assistance is needed to turn a promising prototype into a viable product.' The scheme will target sunrise sectors such as clean energy, climate tech, deep tech (quantum applications, robotics, space teach), AI in key areas, biotech, digital agriculture, and also interestingly technologies required for strategic reasons, economic security, self-reliance or public interest. 'Countries that invest heavily in R&D see long-term gains in productivity and technological advancement across industries,' said Vaishnaw. The Economic Survey 2024-25 noted that even though India has increased the gross expenditure on research & development (GERD) from approximately ₹ 60,196 crore in 2011 to about ₹ 127,381 crore in 2021, it still is a mere 0.64% of its GDP. The survey noted that this remains 'insufficient and remains low compared to many countries that have forged ahead in R&D.' A Press Information Bureau release said the government will give ₹ 1 lakh crore to the Anusandhan National Research Foundation (ANRF) as a 50-year interest-free loan. ANRF, a government body set up to boost research and innovation, will create a special fund that offers concessional finance to second-level fund managers, who will then evaluate and select individual projects for funding. In some cases equity investments in startups may also be considered, the PIB release said. Contributions to the Deep-Tech Fund of Funds, announced in Budget 2025, or any other fund of funds meant for RDI may also be considered, the release added. The RDI scheme will be guided by the ANRF governing board, chaired by the prime minister. Its executive council will set guidelines and recommend fund managers and project types. A group of secretaries, led by the cabinet secretary, will approve changes and review progress. The secretary of the relevant sector will be included in the group. For instance, if a project involves AI, the secretary of the IT ministry will be part of the decision-making body. The department of science and technology will be the nodal agency for implementation. Industry insiders described the scheme as transformative. 'DeepTech is the final frontier in the Indian Startup ecosystem. This ( ₹ 1 Lakh crore over 5 years) is a massive commitment from the Government of India to catalyze private sector R&D and deep tech innovation,' said Rajan Anandan, Managing Director at Peak XV Partners and former head of Google in India and Southeast Asia on X. Nikhil Agarwal, managing director, foundation for innovation and technology transfer (FITT), IIT Delhi, said, 'For the first time, our private sector has a real runway to dream bigger, build deeper, and compete globally. This move can transform India from a service-driven economy into a true innovation powerhouse. It's a defining moment for our nation's future.' He pointed out that for young founders building in AI, space, biotech or semiconductors, access to R&D capital has always been the missing link. This scheme fills that gap, he said, calling it a structural reform that re-imagines how India competes globally.
Business Recorder
2 days ago
- Business
- Business Recorder
Inflation in Pakistan rises to 3.2% in June 2025
Pakistan's headline inflation clocked in at 3.2% on a year-on-year basis in June 2025, a reading lower than that of May 2025, when it stood at 3.5%, showed Pakistan Bureau of Statistics (PBS) data on Tuesday. On month-on-month basis, it increased by 0.2% in June 2025, as compared to a decrease of 0.2% in the previous month and an increase of 0.5% in June 2024. CPI inflation average during FY25 stood at 4.49% as compared to 23.41% in FY24. Inflation in Pakistan has been a significant and persistent economic challenge, particularly in recent years. In May 2023, the CPI inflation rate hit a record high of 38%. However, it has been on a downward trajectory since then. The CPI reading is in line with the government's expectations. The Finance Ministry in its monthly economic report expected inflation to ease to a range between 3-4% in June. 'On the external front, higher remittances and exports will continue to keep the current account in surplus for FY 2025,' read the monthly outlook. Earlier, the Economic Survey 2024-25 noted that inflation is projected to remain within the range of 4.5-5% during FY25, supported by a sharp decline in the prices of perishable food items and adequate stocks of key non-perishable commodities. Meanwhile, the latest CPI reading was also in line with the projections made by several brokerage houses. JS Global projected Pakistan's headline inflation to lower to 3.1% in June. 'Following a 3.5% YoY reading in May 2025, the CPI is expected to be at 3.1% YoY in June 2025. The base effect is now fading, signalling a return to normalised price trends,' said JS Global. Meanwhile, Insight Securities, another brokerage house, expected headline inflation to clock in at 3.2% in June. Urban, rural inflation The PBS said CPI inflation urban decreased to 3% on year-on-year basis in June 2025, as compared to 3.5% of the previous month and 14.9% in June 2024. On month-on-month basis, it remained stable at 0.1% in June 2025, as compared to 0.1% in the previous month and 0.6% in June 2024. CPI inflation rural increased by 3.6% on year-on-year basis in June 2025, as compared to an increase of 3.4% in the previous month and 9.3% in June 2024. On month-on-month basis, it increased by 0.5% in June 2025, as compared to a decrease of 0.5% in the previous month and an increase of 0.3% in June 2024
Mint
5 days ago
- Mint
The Pahalgam attack crushed Kashmir's fledgling offbeat tourism. The Amarnath Yatra could be a new start.
SRINAGAR : In March 2023, the Jammu and Kashmir |(J&K) government launched an ambitious initiative to spotlight 75 offbeat destinations—37 in Jammu and the rest in the Kashmir Valley. But April brought a brutal end to the fragile optimism that had begun to take root in these lesser-known tourist attractions. Baisaran Valley, known as 'mini Switzerland' for its picturesque meadow, is now remembered for the haunting image of a numb young bride sitting beside her husband's lifeless body. The first-ever terror attack on tourists in 'Paradise on Earth' claimed 26 lives, and with them, the hard-earned trust. Six days after the 22 April attack, the Union territory's administration ordered the closure of 48 out of 87 tourist destinations across the Valley. Nearly all offbeat spots, such as Gurez Valley, Lolab Valley, Bangus Valley, Tulail Valley, Keran, and Doodhpathri, were declared off limits, leaving once-lively trails and meadows in deafening stillness. 'Coming in April, just as the peak summer season was about to begin, and directly targeting tourists, the attack dealt a heavy blow to the industry at its most crucial moment," Javed Bashir, a 33-year-old tour operator from the Baramulla district, 53 kilometres from Jammu and Kashmir's (J&K) summer capital Srinagar, told Mint. While some tourists can be spotted at popular tourist destinations, the far-flung places remain completely deserted, said Bashir, who has been in the business since 2018. Encouraged by the newfound normalcy in the Valley following the abrogation of Article 370, tourists turned up in droves, with J&K recording 23.6 million tourist visits in 2024—the highest ever, according to the Economic Survey 2024-25. To accommodate this growing influx, the administration gradually started promoting offbeat destinations. Hidden valleys, quiet villages, and virgin alpine meadows began welcoming visitors, marking an unexpected turning point for tourism in the Valley. There was a tourist boom, and with it came hope. "Many hotels, guest houses, and other properties were under construction. People invested heavily, believing the momentum would continue. But now, it seems all is lost," said Mushtaq Chaya, chairman of the J&K Hoteliers Club. Thousands of families who depend on tourism for their livelihood are suffering. 'Many are now on the brink of bankruptcy unless tourist confidence is restored soon," a senior tourism official told Mint on the condition of anonymity. The official added that repeated communications with higher authorities have proven futile, as not a single site has been reopened yet. Struggling to make ends meet, two million people—from hotel and homestay owners to their staff, tour guides, transport operators, 'ponywallahs'—are now pinning their hopes on the Amarnath Yatra (3 July to 9 August), an annual Hindu pilgrimage, to revive the industry this winter season. Investments down the drain The tourism had also been flourishing along the Line of Control (LoC), a rare and hopeful sight after years of uncertainty. By the summer of 2021, just months after the February ceasefire agreement between India and Pakistan, the streets of border villages were alive. Also Read: From Konkan's Alphonso to Andhra's Imam Pasand, why are Indian mangoes losing their sweet spot? For the first time in nearly three decades, people of these once-restricted zones were able to welcome tourists, both domestic and international, eager to explore the serene valleys that had long been off limits. The calm along the border seemed to promise a new chapter for Kashmir, a peaceful and prosperous future where the beauty of the land could finally shine through without the looming threat of conflict. For example, in 2023, the border district of Kupwara hosted 140,000 tourists. Those who invested in offbeat tourism now find themselves idle with no work. In Kupwara's Lolab Valley, about 20 hotels set up by locals through loans and leases are now facing heavy losses, said Talib Hussain, who has lost his job as a travel agency manager. 'Between April and June, we usually see a good flow of tourists who come to enjoy trekking, camping, the gushing streams, lush green forests, and the centuries-old Kalaroos caves, but not this year," the 29-year-old told Mint. Similarly, Keran, nestled amid lush green forests, walnut trees, meadows, streams, and wooden houses, once provided a serene escape for visitors, drawing many to its peaceful atmosphere. One part in Kupwara district and the other in Pakistan-occupied Kashmir, the village is bisected by the Kishanganga River (known as Neelum on the other side), making it a unique offbeat tourist attraction. In its Jhelum Bazar, hotelier Dilshad Ahmad Bhat remembered the joy of welcoming tourists after the 2021 ceasefire, which inspired him to take a ₹5 lakh bank loan in 2024 to renovate his hotel. But now, 'the hotel is empty, and so are the vegetable and meat shops I used to buy from for my guests. It's not just about the money, but it is also my mental health, slipping away with every silent day," Bhat told Mint. Gurez Valley in the Bandipora district is another breathtaking slice of paradise, bordered by thick forests, towering mountains, and the winding Kishanganga River. Nestled 123km from Srinagar, at an altitude of 2,400 meters, once a key stop on the ancient Silk Route, the valley's beauty is rivalled only by its isolation, with snowfall cutting off access for more than six months each year. Mohammad Ismail Lone, a homestay owner and the head of the Gurez Traders Federation, recalled with quiet pride how his modest homestay welcomed hundreds of visitors in just a single year, earning him ₹5-6 lakh, a lifeline not just for him, but also for the four employees who ran the place like family. 'After the attack, everything changed. The tourists disappeared overnight, and so did the jobs." Also Read: India's liquor stocks are on a high—what's fuelling the rally, and what could derail it 'After years of living under the shadow of cross-border shelling, we were finally beginning to breathe easy, watching tourists bring life back to Gurez Valley, but we never imagined it would all slip away so soon and we would find ourselves back where we started," he added. Today, the homestays and hotels are empty. Restaurant shutters creak half-open in the wind. Taxis purchased on credit wait silently at village junctions, their engines cold. Livelihoods interrupted For the past three years, 55-year-old Ghulam Qadri Bhatti and his wife Mughali had begun each morning in the hills of Doodhpathri, or 'Valley of Milk', 44km from Srinagar, by setting up their modest tea stall in the open meadows, gently brewing Nun Chai, the traditional pink salty tea of Kashmir made with green tea leaves, milk, and baking soda. 'Our days were spent making tea and talking to tourists. We served not just tea, but a piece of Kashmiri hospitality. But after the violence, the authorities told us to leave because of security concerns. Now, with no tourists around, we had to pack up our stall," said Bhatti, his voice trailing into a sigh. For years, the region's tea sellers earned a modest living—between ₹20,000 and ₹40,000 a month—every summer. Bhatti is one of nearly 200 such tea sellers who lost their livelihood in the aftermath of the terrorist attack. 'We are landless people. Since Doodhpathri in the Budgam district was sealed off and our stalls were shut, we have been left jobless, with nothing to do. It has become a daily struggle just to make ends meet. Our dreams of providing a better future, of sending our children to school, seem impossible now, " Bhatti said. In the adjoining Riyar Riyar Ich village in the same district, 32-year-old tourist guide Mohammad Shafi Mir has the same story to share. For the past 13 years, he has guided visitors through Doodhpathri, supporting his entire family through this job. 'When there are no tourists, there is no work and no income," he said. Since the attack, Mir has not earned a single rupee, calling it the most unprecedented situation he has faced in his career. About 10,000 people directly associated with tourism, including hoteliers, transporters, pony riders, all-terrain vehicle (ATV) operators, tea sellers, and tourist guides, have lost their livelihoods in Doodhpathri alone, according to Mir. 'In anticipation of the growing influx of tourists, many hoteliers and ATV operators took out loans to construct hotels and purchase ATVs. It is concerning to think how they will repay these loans, given that they are not earning anything at the moment," Mir lamented. In Budgam's Yusmarg, pony riders sit quietly next to their horses, watching the empty paths. The place, which once echoed with tourists' adventure and the sound of hooves on the ground, is now silent. Long-lasting impact Political instability has a profound impact on global tourism. 'Tourists always look for peace and security, which are fundamental prerequisites for travel. Incidents like 9/11 and the 2008 Mumbai attack have had far-reaching consequences beyond their immediate regions," said Reyaz Ahmad Qureshi, head professor at the department of tourism, hospitality and leisure studies, University of Kashmir. Also Read: Why is walking on eggshells beyond Gurugram, its home turf He added that while Kashmir has endured a prolonged period of unrest, it has been gradually transitioning into a post-conflict phase since 2021, fostering a sense of growing optimism within the tourism sector. He argued for a more nuanced approach to dealing the terrorism's impact on tourism. 'Sealing off tourist spots or banning trekking sends the wrong message. Offbeat destinations could be reopened gradually with proper regulation." 'We must project Kashmir as a safe, beautiful, and affordable destination. Campaigns like 'Aao Kashmir Chalein' should be sustained and should emphasize the warmth and sacrifices made by locals to ensure visitors feel welcome," added Qureshi, stressing that negative media coverage must be addressed with professionalism and assured security. Still many, including Bashir, remain cautiously optimistic about a revival in tourism in the Union territory. He expects the Amarnath Yatra and snow-draped landscapes during winters to lure visitors back to the Valley. 'While the summer season may have slipped away in the shadow of recent events, the story is not over yet. The season is definitely behind us, but once the Amarnath Yatra concludes in August, the spotlight will shift to winter," he said. The successful conduct of the Amarnath Yatra will now serve as a litmus test for the government's ability to restore confidence among tourists.
Economic Times
6 days ago
- Business
- Economic Times
AI at work: Job cuts and tech leader opinions
Amazon recently announced to nearly 350,000 of its employees that they must either relocate to one of its main office hubs like Seattle, Arlington (Virginia), and Washington, D.C., or leave the company without receiving severance pay. It is interesting to note how readily the company is willing to let go of employees simply to enforce a return to office-based work. However, this should not come as a surprise, given how Amazon CEO Andy Jassy has said time and again that AI adoption will reduce the company's corporate workforce. Like Amazon, many other major tech firms, including Meta, Microsoft, Google, and others, have also been affected by waves of layoffs, especially given the disruption brought about by artificial intelligence (AI). The United Nations Conference on Trade and Development (UNCTAD), in April, warned that AI could impact up to 40% of jobs worldwide. Also Read: Jobs AI won't replace: Anthropic cofounder Jack Clark names safest roles What CEOs say Global tech leaders have been expressing concerns about this development. In May, former Google CEO Eric Schmidt said professionals in many fields, including art and medicine, could become irrelevant if they do not adapt to AI. Around the same time, Nvidia CEO Jensen Huang said that every job is going to be affected by AI. 'You are not going to lose your job to AI, but you are going to lose your job to somebody who uses AI,' Huang said. Last month, Anthropic CEO Dario Amodei openly warned that AI could eat away nearly half of all entry-level white collar jobs, and soon. However, these are not just random claims but are backed by data. According to a report by McKinsey and Company, between 400 and 800 million jobs could be displaced worldwide within five years, depending on how quickly automation is shift could force around 375 million workers—14% of the global workforce—to transition into entirely new it comes to India, the Economic Survey 2024-25 has raised similar concerns and called attention to the heightened worries of workers and the speed at which AI is transforming the labour market. Hitesh Oberoi, CEO of Info Edge (which operates recently said AI isn't just about job cuts but changing the nature of work. He emphasised the need to focus on developing new skills. Zoho founder Sridhar Vembu, however, gave a more radical view on this issue. He said on X, 'The productivity revolution I see coming to software development (LLMs + tooling) could destroy a lot of software jobs. This is sobering but necessary to internalise.' The other side However, not all CEOs are eager to expand AI use. Klarna Group, a fintech firm, has chosen to reduce its AI-powered customer service. CEO Sebastian Siemiatkowski explained that the model led to a drop in service quality, and the company is now adjusting its approach. 'Really investing in the quality of human support is the way of the future for us,' he workers, too, have adopted a positive approach to AI integration in the workplace. A study by SnapLogic found that 81% of office workers believe AI enhances their job performance and overall work there is a diverse range of opinions on this topic, it is clear that workers will have to adapt to the changes brought in by the AI revolution.
Indian Express
6 days ago
- Business
- Indian Express
Women-led MSMEs are the key to ‘Viksit Bharat'
Written by Neeraj Ahuja According to the Economic Survey 2024-25, women own only 22 per cent of India's MSMEs. A large number of these enterprises are micro-enterprises – largely single-person units with high concentration in low-margin, informal, and traditional sectors like tailoring, food processing, and handicrafts. Despite constituting nearly half the population, the share of women-led enterprises is abysmally low in India. This isn't just a gender gap; it's an economic opportunity gap of massive proportions. India cannot realise the vision of a 'Viksit Bharat' without unlocking the huge potential of women entrepreneurs. There is a lot of optimism in India about tapping the demographic dividend that could propel economic growth and support the transition to a high-income country. This largely refers to harnessing the potential of India's youth. However, there is another untapped Indian demographic that can potentially lead to a substantial increase in India's GDP: Women. Women-led MSMEs (WMSMEs) are not just about women's empowerment and mainstreaming. They are also about families, communities, and local economies. Studies show that women tend to reinvest up to 90 per cent of their income into their families, in contrast to 30-40 per cent by men. That means better nutrition, education, and health outcomes for children, that is, a stronger society and a more resilient economy. WMSMEs are more likely to hire other women, helping reduce gender disparities in the labour market and driving innovation in underexplored sectors like bio economy, eco-tourism, arts and crafts, food processing, etc. Many of these WMSMEs operate in rural and underserved areas that address pressing local needs, bridging the urban-rural divide. Thus, unlocking the potential of women-led MSMEs isn't just about inclusion — it's a national economic imperative. The MSME sector is the backbone of the Indian economy, contributing 30 per cent to GDP and employing over 20 crore people. It is also one of the few spaces in the economy where women's participation is comparatively higher. Yet, women-led enterprises struggle to access formal capital, market linkages, or even basic recognition. Less than 10 per cent of women entrepreneurs use formal credit services, and a majority continue to rely on personal savings or informal channels to keep their businesses afloat. This is despite evidence that women-led businesses have high repayment rates, low default, and enormous potential for job creation. In rural India, where women already lead collective action through self-help groups (SHGs), the opportunity is even more profound. But financing models, policies, and enterprise support systems have failed to evolve with their ambition. Most women lack collateral, formal business histories, or credit scores — the basic keys to the formal lending world. Financial institutions often view women-led enterprises as riskier, despite evidence to the contrary. Deep-rooted social norms and safety often inhibit their mobility, decision-making power, and public visibility. Women's economic activity is frequently viewed as supplemental rather than entrepreneurial. While numerous entrepreneurship programmes exist (RSETI, SVEP, PM Vishwakarma, PMEGP), these efforts are often gender blind and operate in silos — focusing narrowly on inputs such as training or one-time funding. They lack not just a gender lens but also a cohesive, end-to-end support architecture that integrates business idea discovery, skills, mentoring, financing, and market access. The social norms and access gaps are much wider in rural areas where most of India's women reside. On the brighter side, however, several new programmes and models have emerged in the last decade that don't just address one part of the problem, but aim to build entire support ecosystems around women entrepreneurs. SHGs and collective enterprise models continue to be a quiet revolution in rural India. Decades of mass collectivisation have resulted in robust women's groups who are now ready to provide the foundational support to thriving women-led enterprises. These groups alter community norms and perceptions, reduce entry barriers, distribute risk, and offer the comfort of a familiar community. For many women, it's the only feasible way to start. Similarly, the NAK (Nari Adhikar Kendra) initiative by MP State Rural Livelihood Mission and Transform Rural India (TRI) has transformed the enterprise support ecosystem for rural women. It offers women a support ecosystem that includes mentorship, enterprise incubation, skilling, and market linkage. Many women who started as SHG members have now registered as Udyam enterprises and are supplying to institutional buyers. Digital innovation is also rewriting the rulebook. Platforms like the Open Network for Digital Commerce (ONDC) are allowing women to reach customers without the traditional constraints of retail infrastructure. Mann Deshi and Rang De have pioneered women-friendly banking models — tech platforms that don't just lend, but support women-led enterprises with training, mentoring, and market linkage. The case is equally strong for CSR investors. India's ground-breaking CSR legislation has led to corporate contributions crossing Rs 25,000 crore annually. However, most of this capital remains locked in low-risk, compliance-driven projects, concentrated in urban or peri-urban areas. Reports like the India Philanthropy Report 2023 (Bain & Dasra) and Sattva's State of CSR in India underline a persistent trend: Companies are prioritising CSR spends that are safe, familiar, and easy to report. Women-led enterprises offer high social and economic returns, and CSR can play a catalytic role in de-risking early-stage investments and creating a supportive entrepreneurship ecosystem for women entrepreneurs. If India is serious about becoming a $5 trillion economy and 'Viksit Bharat' by 2047, women-led MSMEs must move from the margins to the mainstream. We already know what to do. The question is: Are we ready to act? The writer is Associate Director, Transform Rural India
