Mohan Kumar Singh, Principal Director General of the Directorate of Revenue Intelligence (DRI), said that illicit trade through smuggling and counterfeiting poses an immense threat and impacts legitimate economic activities resulting in government revenue losses and fuelling of organised crime.

“At DRI, we are acutely aware of the challenges of illicit trade and are dedicated to addressing them on a daily basis. In the financial year 2023-24, DRI detected 623 cases, averaging nearly 2 cases daily, resulting in contraband seizures valued at Rs 3,500 crore. A significant portion of these seizures involved narcotic drugs and psychotropic substances as well as smuggled gold. Also, other items that DRI has kept a close watch on are cigarettes, red sanders, fake currency, wildlife products as well as areca nuts.

“Given the nature of illicit trade one major way forward to tackle the menace is the need for emphasis on global cooperation among relevant international organizations. We have actively pursued this cooperation through various bilateral and multilateral agreements. Our experience shows that infiltration of global supply chains has emerged as a significant threat,” Singh said.

Singh was delivering the inaugural address at a seminar organised by FICCI Committee Against Smuggling and Counterfeiting Destroying the Economy (CASCADE) in Delhi.

FICCI CASCADE has intensified its campaign to combat illicit trade by organising the seminar titled, Global Challenges of Illicit Trade and the Way Forward.

The seminar focussed on addressing the complex issues surrounding illicit trade on a global scale and aimed to pave the way for collaborative solutions and proactive measures against this pervasive threat to economies worldwide.

Applauding FICCI CASCADE’s work in countering illicit trade, Singh said: “Global meetings and conferences have also played a crucial role in tackling the widespread nature and network of illicit trade operatives. Combating such networks requires a network of multiple stakeholders of government bodies as well as non-state actors. The dynamic nature of these threats necessitates forums such as this seminar to contribute effectively to the fight against illicit trade. I commend FICCI CASCADE for organising this seminar, which I am sure will contribute meaningfully to the global efforts of combating illegal trade.”

Anil Rajput, Chairman of FICCI CASCADE delivering the welcome address at the seminar said: “In India, DRI and other enforcement agencies have been playing an increasingly significant role in combating illicit trade through a substantial increase in seizures of illicit products like gold, cigarettes, currency, cosmetics and much more on a routine basis at the Indian airports, sea ports and border points. Today, illicit trade operatives exploit technology like AI to automate smuggling processes, from route planning to risk assessment and evasion tactics. Illicit traders are also employing AI algorithms to analyse border control data, law enforcement activities and surveillance patterns to exploit weaknesses and optimise their illegal operations, therefore, development of effective deterrence against this misuse of technology requires our unabated focus.

“I must emphasise that despite the increase in seizures, these represent only the tip of the iceberg and the magnitude of the problem is significantly higher and continues to grow exponentially year on year. Hence it is imperative that we act swiftly to enhance global cooperation in combating illicit trade. One proposed solution is establishing a ‘Global Forum’ comprising enforcement agencies from across the world, supported by a dedicated secretariat. FICCI CASCADE stands ready to collaborate with the government and enforcement agencies to develop a comprehensive strategy to bring alive such an initiative,” Rajput added.

Brigadier Girish Upadhya, Assam Rifles, during the seminar said: “Infrastructure in border areas is a challenge but we try our level best to stop contraband and the movement of illegal drugs. In 2023, Rs 1,125 crore worth of drugs and contrabands were caught and this year until now, Rs 1,109 crore worth of drugs and contrabands have been seized. We keep having monthly and quarterly meetings with other agencies to check smuggling and I believe movement in border areas needs to be electronically mapped to rein in these illicit activities.”

B. Shanker Jaiswal, Joint Commissioner of Police (Tech, Cyber & Licensing), Delhi Police, said: “Technology is an enabler and is a force multiplier. But no technology can be effective until and unless there are trained personnel to use it. Criminals use the dark web for transactions and this has become very challenging. We have to train our officers in such technologies to tackle the threat. Illicit trade can be drastically reduced if we are able to harness technology effectively. For example, we should be able to harness the massive databases that the government has created and take the help of AI in data mining to be one step ahead of smugglers and illicit trade operatives. I strongly believe data-driven policing is the future.” AGENCIES

 The National Stock Exchange (NSE) issued an advisory on Friday cautioning investors of certain individuals and entities promising assured returns on investment in the stock market.

The exchange said in a statement that investors are cautioned and advised not to subscribe to any such scheme/product offered by any person/entity offering indicative/assured/guaranteed returns in the stock market as the same is prohibited by law.

The NSE said that a Telegram channel named ‘Leverage Consultants’ operating through the mobile number ‘9257674662’ and an individual named ‘Amisha Thakur’ operating via mobile number ‘9366171650’ — is “providing securities market tips and assured returns on investment in the stock market”.

“It may also be noted that the said person/entity is not registered either as a member or authorised person of any registered member of the National Stock Exchange of India Limited,” said the NSE.

The stock exchange also advised investors not to share their trading credentials, such as user ID/password, with anyone.

“Exchange has provided a facility of ‘Know/Locate your Stock Broker’ under the link on its website, to check the details of the registered member and its authorised persons,” it mentioned. AGENCIES

India, on its way to becoming the global electronics manufacturing hub, has doubled down on the local manufacturing of multiple products — mobile phones and their components, televisions, semiconductors and other devices — and the momentum is only going to grow in the next five years riding on the production-linked incentive (PLI) scheme, according to industry experts.

Reports claim that India’s electronic manufacturing is projected to reach $250 billion in the next five years — from $105 billion (around 3 per cent of the GDP) in FY23. The country aims to reach $300 billion in electronics manufacturing by 2030.In April, electronic goods exports were recorded at $2.65 billion compared to $2.10 billion during April last year, registering a growth of 25.80 per cent, according to the Invest India data.

As per the India Cellular and Electronics Association (ICEA) data, mobile phone production surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, registering an increase of a massive 2,000 per cent, driven by the PLI scheme.

Pankaj Mohindroo, Chairman of ICEA, said that the ‘continuity’ in policymaking is critical to the electronics manufacturing growth.

“We are geared up for the five-year sprint till 2030 on the way to transforming India into a global hub for electronics manufacturing and Viksit Bharat,” he added.

Apple has been a shining story of the country’s local manufacturing dream.

The iPhone maker exported iPhones worth more than Rs 16,500 crore in the first two months of the current financial year — accounting for more than 80 per cent of the country’s total production/assembly of iPhones.

Foxconn, the key Apple supplier, led total exports at about 65 per cent.

For FY 24, Apple saw a total iPhone production of around $14 billion. The company has increased iPhone production and one out of seven iPhones in the world is now being manufactured in the country, according to Prime Minister Narendra Modi.

The global chipmaking industry is also looking to establish operations in India, as the country emerges as a promising alternative to China amid tensions between Beijing and the West.

Meanwhile, the PLI schemes for 14 sectors are projected to see investments worth Rs 3 lakh crore – Rs 4 lakh crore in the next couple of years, likely generating 2,00,000 jobs in sectors like semiconductors, solar modules and pharmaceutical intermediaries.

According to Paritosh Prajapati, CEO of telecom gear maker GX Group, under PM Modi’s leadership, India has witnessed major reforms in the last couple of years and the continuation of the new government will set those reforms into further action.

“Manufacturing has been a major sector where the automobile, electronics, and pharmaceutical sectors have been growing extremely fast,” he noted. AGENCIES

Japan’s Takeda Pharmaceutical gave India’s Sun Pharmaceutical and Cipla (NS:CIPL) the rights to commercialise the gastrointestinal drug Vonoprazan in the country.

The drug, which is sold in the form of tablets under the brand name ‘Voltapraz’, blocks a key step in the production of stomach acid, Sun Pharma (NS:SUN) said on Friday.

Takeda has granted both drugmakers non-exclusive patent licensing rights for the drug.

Cipla and Sun Pharma will independently commercialise the drug in India under their respective brands.

Vonoprazan (oral tablets) is a novel potassium-competitive acid blocker (P-CAB), used for the treatment of Gastroesophageal Reflux Disease (GERD).

Vonoprazan is also used in treating disorders such as erosive oesophagitis, gastric ulcer, duodenal ulcer, peptic ulcer, gastro-oesophageal reflux, reflux oesophagitis and Helicobacter pylori eradication, according to a Cipla statement. AGENCIES

India’s jewellery retail sector has recorded rapid growth in the last five years surging from Rs 5,04, 400 crore in 2019 to Rs 6,40,000 crore in 2024 on the back of rising incomes in the economy and greater trust in the products due to hallmarking, according to a Motilal Oswal report.

Industry estimates cited by the brokerage project the jewellery market to achieve a 15-16 per cent compound annual growth rate (CAGR), reaching USD 145 billion by FY28.

Overall, the jewellery sector has seen an approximately 8 per cent revenue CAGR during FY19-24, reaching Rs 6,40,000 crore in market value, with the organised segment growing at 18-19 per cent.

The organised market is expected to grow at over 20 per cent CAGR, accounting for 42-43 per cent of the total market. “There are multiple drivers in the industry-leading to such rapid growth, driven by rising disposable income (higher per capita growth in double digits), an improving mix for regular wear (beyond weddings and investment-led), enhanced product offering (such as design and diamonds), trust-building through hallmarking, and a better buying experience at organized retail outlets,” the report states.

The top 10 states, which include Tamil Nadu, Maharashtra, Karnataka, West Bengal, and Uttar Pradesh, account for 78 per cent of the organised retail network and contribute 68 per cent of the GDP. AGENCIES

 Indian CEOs are prioritising technology investment, including artificial intelligence (AI) but stay guarded amid data security challenges, according to a report.

Around 70 per cent of CEOs are channeling investments into technology, including AI, to catalyse growth and enhance productivity over the next 12 months, which is much higher than their global counterpart at 47 per cent, according to the ‘EY CEO Outlook Pulse Survey’.

However, fortifying data management and cybersecurity (56 per cent) and pursuing cost optimisation across business facets (50 per cent) also stand out as critical strategic imperatives in the near term.

Moreover, the acquisition of technology, new production capabilities, or innovative startups (44 per cent) emerges as the leading strategic driver for mergers and acquisitions (M&A) activities, said the report.

“Commitment to tech investments is not just a response to the present but a strategic leap towards the future. The survey underscores this momentum, revealing that a substantial majority of CEOs are actively aligning their organisations with an AI-centric blueprint for innovation and productivity,” said Mahesh Makhija, EY India Technology Consulting Leader.

Despite a majority of CEOs acknowledging the growing importance of sustainability compared to a year ago, there is a trend of sustainability slipping down the priority list for almost 16 per cent of CEOs, overshadowed by financial constraints and a shift in boardroom focus.

To bolster the sustainability agenda, corporate India advocates for technology incentives, including AI, as well as subsidies and tax breaks for green technology investments, coupled with governmental backing of sustainable infrastructure projects. AGENCIES

 The demand for Grade A warehousing stock will grow at a Compounded Annual Growth Rate (CAGR) of 12.5 per cent in India until FY30, a new report said on Friday.

According to the global professional services firm Alvarez & Marsal (A&M), India is witnessing an emergence of high-quality warehousing infrastructure, recognising warehouses as vital components in delivering exceptional customer experiences.

At present, up to 70 per cent of Grade A demand comes from Delhi-NCR, Mumbai, Bengaluru, Chennai and Pune.

“The evolution of warehousing in India from simple ‘godowns’ to sophisticated logistics hubs signals a new era of efficiency and resilience in supply chain management,” said Manish Saigal, A&M India Managing Director and Business Transformation Services Practice Co-Leader.

“Warehouses no longer serve as a mere storage facility, but rather as multifunctional logistic hubs integral to the seamless functioning of the supply chain and a superior choice for businesses aiming to optimise operations,” he added.

Sectors which are mainly driving the warehousing demand are retail, third-party logistics (3PL) and e-commerce.

As per the report, these sectors are projected to contribute about 80 per cent of the total demand for Grade A warehousing over the next five years.

Further, the report mentioned that with advanced storage solutions and temperature-controlled environments, these warehouses are well-positioned to cater to the growing needs of various industries, contributing to the overall growth and efficiency of India’s logistics ecosystem. AGENCIES

 In a bid to enhance the Electric Vehicle (EV) landscape and ecosystems in India and Europe, the India-European Union Trade and Technology Council (TTC) organised an event, featuring 12 high-impact startups in battery recycling technologies for EVs.

An independent committee of experts from each side shortlisted these 12 startups through a rigorous process based on scientific merit, market readiness, and prospects for cooperation.

“The initiative aligns with India and the EU’s commitment to promote a sustainable agenda, foster innovation, and forge stronger economic relations between India and the European Union,” said Office of Principal Scientific Advisor to the government of India in a statement.

The event offered the startups/SMEs an exclusive platform to pitch their innovative technologies.

Start-ups operating across the battery recycling value chain, covering collection to valuable mineral extraction participated in the matchmaking event.

“This matchmaking event brings together the best talents and technologies in the battery recycling space on both sides, giving them an exclusive platform for exchange, networking, and prospective investments,” said Professor Ajay Kumar Sood, Principal Scientific Adviser to the Central government.

 “We believe the exchange trip, awarded to three Indian and three EU start-ups, to visit EV battery recycling facilities on either side would be highly beneficial,” he added.

Marc Lemaitre, Director-General for Research and Innovation at the European Commission, emphasised the importance of an innovation-led EU-India partnership.

“This matchmaking event is such a step by bringing together innovative startups from both regions that want to scale up green solutions under the umbrella of the EU-India Trade and Technology Council,” said Lemaitre.

As a next step, three start-ups each from India and EU will be awarded the opportunity to visit the EU and India, respectively for a week-long market immersion experience.

The India-EU TTC was first announced by the European Commission President, Ursula von der Leyen, and Prime Minister Narendra Modi in April 2022,

It is a key forum to deepen the strategic partnership on trade and technology between the two partners. AGENCIES

 Output growth across India’s private sector regained growth in June with business activity increasing at quicker rates among manufacturing companies and services firms while hiring of workers shot up to an 18-year high, according to HSBC’s flash PMI data released on Friday.

There was also a substantial upturn in aggregate employment amid robust expansions in total new orders intakes and international sales, according to the data, compiled by S&P Global.

New orders gained growth momentum for both sectors, with a faster upturn among manufacturers as a result, capacity pressures became evident in June, leading firms to increase their staffing levels to the greatest extent in over 18 years.

The services Purchasing Managers’ Index (PMI) climbed to 60.4 in June 2024 from 60.2 in May, while the manufacturing purchasing managers’ index increased to 58.5 in June from 57.5 in the previous month.

India’s manufacturing activity had slipped to a three-month low of 57.5 in May, as intense heatwaves led to reduced working hours and impacted volumes.

Meanwhile, services sector growth had softened to a five-month low in May following stiff competition and price pressures amid a severe heatwave.

“The composite flash PMI ticked up in June, supported by rises in both the manufacturing and service sectors, with the former recording a faster pace of growth. New orders gained growth momentum for both sectors, with a faster upturn among manufacturers. Meanwhile, new export orders slowed slightly in June, although the rate of expansion was the second fastest since the beginning of the series,” said Maitreyi Das, Global Economist at HSBC.

Input cost inflation eased slightly in June, but remained elevated with panellists citing increases in labour and material costs. The output price index suggests manufacturing firms were able to pass on higher costs to customers, the survey states. AGENCIES

Quick delivery platform and Blinkit’s rival Zepto on Friday said it had raised $665 million at a $3.6 billion valuation in a highly oversubscribed round — just nine months after the company raised $235 million at a $1.4 billion valuation.Avenir, Lightspeed and Avra (Anu Hariharan’s new fund) joined the company’s cap table as new investors, among others.

Existing investors Glade Brook, Nexus, and StepStone co-led the round with Goodwater and Lachy Groom doubling down as well, the company said in a statement.

“This dynamic of stores turning profitable faster and faster has enabled Zepto to grow rapidly while simultaneously achieving near EBITDA positivity at a company level,” said Aadit Palicha, Zepto’s Co-founder and CEO.

“We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business,” he added.

If the company is able to achieve this while continuing to delight customers, “I believe we will be ready to go public relatively soon.”

In terms of business performance, Zepto’s gross merchandise value (GMV) has multiplied year-on-year to a base of more than $1 billion, and 75 per cent of the company’s stores are fully EBITDA positive (as of May).

With the new round of funding, “We plan to hire top talent across engineering, product, growth, finance, operations, and category management,” said Kaivalya Vohra, Co-founder and CTO, Zepto.

Founded in 2021 by Stanford University dropouts, Aadit Palicha and Kaivalya Vohra, Zepto became one of India’s fastest-growing internet companies.

Headquartered in Mumbai, Zepto delivers over 10,000 products, ranging across categories in 10 minutes.

“The Zepto team embodies what is possible for the next generation of Indian founders, and Glade Brook could not be more excited to continue our partnership,” said Paul Hudson, CIO of Glade Brook Capital Partners. AGENCIES