BW Businessworld - January 07, 2025

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AS INDIA STRIDES INTO 2025, its economic landscape reflects a dynamic
interplay of resilience, transformation and ambition. From the burgeoning
potential of MSMEs and startups to landmark infrastructure, telecom
and green energy reforms, 2024 has set a robust foundation for the nation’s
future. The projected GDP growth rate of 6.5 per cent is challenging, the
lowest since the pandemic, but industry seems geared up to buck the trend
and keep India on a higher growth trajectory.
In this issue, we look at how different sectors plan for the year ahead
and what is in store for them. I have always seen MSMEs as an essential
sector in India. Called the backbone of the economy, this sector stands
at a pivotal crossroads. While grappling with challenges like delayed
payments and rising debt, MSMEs show immense promise, especially
with advancements in digital adoption and government initiatives aimed
at global competitiveness. Similarly, India’s startups are recalibrating,
moving from valuation-driven narratives to sustainable growth strategies
driven by innovation and governance reforms. Many investors continue
to see India as a strong market, and 2025 should also bring some exciting
developments on that front.

The Lingering Old Fiscal Was a Let Down. Will FY2026 Bring Hope?

THE NEW YEAR brought confirmation of a home truth that the Reserve Bank of India (RBI) had portended early in December that the galloping pace of the Indian gross domestic product (GDP) had begun to decelerate.

1 min

Weathering Storms, Winning Battles

THE INDIAN AUTO sector has so far demonstrated the resilience of a Bollywood hero. Auto retail clocked a 9.1 per cent growth in 2024, according to the latest report of the Federation of Automobile Dealers Associations of India (FADA). Two-wheelers (2W) zipped ahead with 10.7 per cent growth, while three-wheelers (3W) and passenger vehicles (PV) followed close behind at 10.4 per cent and 5.1 per cent, respectively. Tractor sales pulled a modest 2.5 per cent increase, but commercial vehicles sales (CVS) stalled at 0.07 per cent. It wasn't all smooth roads.

1 min

$3 BILLION AND COUNTING

By aligning with India's priorities of digitisation and addressing grassroots challenges, Microsoft is positioning itself as a key enabler of the country's Al ambitions

2 mins

INDIA'S HIDDEN HALF: THE PARADOXES SHAPING A NATION'S FUTURE

IN INDIA, LUXURY high-rises cast long shadows over bustling streets where children sell tea to make ends meet. This coexistence is both a formidable challenge and a unique opportunity for the world's most dynamic and complex economy. The story is neither linear nor simple; its coexistence of wealth and poverty, tradition and modernity, defines its unique identity.

4 mins

Year of the Bull

AS 2024 SLIPS AWAY, what memories remain and what does 2025 portend? Key general elections in India, the United States, Britain, France and Bangladesh threw up old and new faces.

4 mins

MANIFESTO FOR INDIA: STEERING THE NATION TOWARD 2025

AS INDIA MARCHES toward its vision for 2047, the year 2025 is a critical fulcrum. It is not just another point on the timeline; it is the year that will shape the trajectory of the next two decades, carving the path for a nation that seeks to balance rapid economic growth with the challenges posed by climate change. Policy decisions henceforth will influence greatly whether India rises to the challenge of becoming a global powerhouse that leaves no one behind or whether it falters under the weight of unresolved inequalities and environmental threats. In this manifesto for India in 2025, we envision a nation that thrives in harmony with its people and the planet - an India where the future is as inclusive and green as it is prosperous.

4 mins

ANOTHER COP DROWNS IN BAKU'S CASPIAN SEA

COP-29 AT BAKU has come to an end and, like the earlier 28, it has not achieved much. Barring some agreements on energy storage and transmission grids there's very little to celebrate in the face of ever increasing climate disasters.

6 mins

Bihar Business Connect 2024: A Landmark Summit Garnering 1.8 Lakh Crore Investments

The Bihar Business Connect 2024 has undeniably positioned the state as a promising investment destination. By Team BW

4 mins

Celebrate the Old Year

AS WE PARTY AND SING - most appropriately over a Scotch whiskey! - Auld Lang Syne (Scottish for \"old times sake\"), we think back at the year gone by. It's time to introspect on the challenges, tribulations, and problems of the year, but even more so to celebrate the successes, joys, and happy moments of the year; days of satisfying work and of friendships grown or renewed; new friends, places, and perspectives. Even as we wish each other a happy New Year, welcoming its arrival with song and dance, we should celebrate the passing of a year, the end of 366 days of happiness and good cheer.

4 mins

CAN INDIA RECLAIM ITS GROWTH MOMENTUM IN 2025?

India's projected GDP growth of 6.6 per cent during FY 2025, the lowest in four years, may signal concerns about the nation's economic trajectory, but optimism hinges on several factors to drive momentum, making 2025 a year for economic recalibration and reboot

3 mins

BUILDING INDIA'S FUTURE

India's 2024 economic growth was driven by advancements in trade, infrastructure, telecom, green energy, and manufacturing, emphasising sustainability, innovation, and efficiency, with plans for enhanced reforms and investments in 2025

6 mins

FMCG REWRITING INDIA'S GROWTH STORY

Premiumisation in the FMCG industry is set to endure, with aspirational demand rising across urban and smaller towns

3 mins

GOLD: RESILIENTLY STRONG PERFORMER

GOLD surged more than 20 per cent in 2024, continuing its outperformance of the past two years. Indeed, gold yielded better returns than the Nifty and the BSE Sensex during the same period. Gold prices in the domestic market rose 26 per cent in 2024, touching an all-time high of Rs 79,700 per 10 gm.

2 mins

LEADING BY EXAMPLE

THE year 2024 is a milestone for Voltas as we celebrate 70 years of enriching lives and transforming the industry. This remarkable journey reflects our enduring impact and inspires us to continue driving innovation and excellence in the years to come. As we conclude 2024, we have navigated a dynamic landscape marked by unprecedented technological and environmental transformations. We achieved a remarkable milestone with our highest-ever air conditioner sales of over two million units in FY24 as well as CY24, driven by strategic innovations that address the complexities of changing weather patterns.

1 min

FROM HOUSING BOOMS TO INDUSTRIAL HUBS

WITH the dawn of 2025, India's real estate market stands poised for unprecedented growth across residential, commercial, and industrial sectors. This pivotal juncture is characterised by exponential growth and evolving market dynamics, with each sector undergoing significant transformations. These shifts are being shaped by demographic changes, progressive policy initiatives, and economic trends.

3 mins

NAVIGATING INDIAN EQUITY MARKET

WE JUST bid farewell to 2024 where the Nifty 50 closed with an impressive 15 per cent annual returns, slightly above long-term average. The mid and small-cap segments have outperformed significantly, delivering returns around 30 per cent, far exceeding their historical benchmarks. Yet, by year-end, the returns across these indices have halved from their peaks earlier in the year. The market correction, which began in late September, tempered an otherwise stellar performance, leaving investors with a mix of above-average annual returns, a sense of what could have been and apprehensions about the outlook for 2025.

3 mins

AVIATION ON A GROWTH PATH

ICRA estimates an increase in domestic air passenger traffic to 164-170 million in FY2025, reflecting a YoY growth of 7-10 per cent over 154 million in FY2024. During 8M FY2025 (April-November 2024), the domestic air passenger traffic stood at 107.5 million, with a YoY growth of 6.7 per cent, partly impacted by the severe heat waves and other weather-related disruptions. The international passenger traffic growth for Indian carriers expanded and was healthier at 15.9 per cent in 7M FY2025 (April-October 2024). This momentum is expected to continue for the balance part of FY2025 as well. ICRA has a 'Stable' outlook on the Indian aviation industry, a reflection of the continued growth in domestic and international air passenger traffic.

2 mins

EXPECT ROCKET GROWTH

GOVERNMENT spending is expected to play a significant role going ahead in 2025. It was pushed to the backseat in 2024 which was mostly an election year. In the second quarter (April-June) of 2024, the entire government machinery was engaged in preparing for and conducting the Lok Sabha polls. This was followed by assembly elections in states like Haryana, Jammu & Kashmir, Maharashtra and Jharkhand. During this period, for the most part, the model code of conduct was in force, forcing the government to refrain from announcing and executing major projects including the infrastructure push. As a result, we saw the gross domestic product (GDP) plunging to a 7-quarter low of 5.4 per cent during Q2 (July-September) 2024.

2 mins

ANCHORING INDIA'S GLOBAL ASPIRATIONS

INDIA'S aspiration to become a developed economy by 2047 is well within reach, with the logistics sector emerging as a cornerstone of the nation's economic progress. Over the years, it has driven growth across diverse industries and sectors. As 2025 approaches, the significant progress made in 2024 marks a defining period, showcasing transformative advancements in sustainability, infrastructure development, and digitalisation. These developments reinforce the critical role of logistics in driving India's progress toward its ambitious $5-trillion economy target by 2027.

1 min

ULTRA LUXURY TO DRIVE GROWTH

THE YEAR 2024 has been transformative for the luxury and ultra-luxury real estate market in India. Historically, transactions exceeding Rs 100 crore were rare, typically limited to iconic bungalows in elite areas like Lutyens' Delhi, Malabar Hill, or Colaba in Mumbai. However, 2024 witnessed a notable shift, with several Rs 100 crore-plus deals involving apartments and penthouses in high-rise condominiums. This trend highlights a broader understanding that the intrinsic value of a property is influenced by factors beyond just size and location.

3 mins

The 21st Century-CESS-to Succeed

IT IS STILL AN understatement to say that the global work landscape is rapidly changing, driven by technological advancements, shifting societal expectations, and a redefined sense of purpose in professional life. It has become clear that to succeed, organisations must adopt a new set of attributes that extend beyond traditional expertise: the four critical 21st Century CESS-Competencies, Empathy, Skills, and Self-Development. These four interconnected elements offer a fresh perspective on what is relevant today and are vital for guiding organisations and workforces towards a sustainable future.

3 mins

TECHNOLOGY SHAPING 'VIKSIT BHARAT'

THE strategic growth of India's technology sector is essential to the country's journey toward Viksit Bharat, driving economic, social, and industrial progress. To achieve this vision, India must leverage its expertise in technology design and services while advancing its capabilities in high-tech electronics manufacturing.

2 mins

LEADING THE WAY: INDIA'S GREEN TRANSITION AND GLOBAL LEADERSHIP

AS 2025 unfolds, India stands at a defining moment, asserting its role as a resilient economic leader and an emerging global hub. This is underpinned by a steadfast commitment to green growth and sustainable development -the key drivers for environmental health and long-term economic stability. Notably, India aims to be net zero by 2070, having pledged to achieve 50 per cent cumulative electric power installed capacity from non-fossil sources by 2030. The country ranks fourth globally in renewable energy capacity, supported by a 36.5 per cent CAGR in solar over 11 years.

3 mins

BEYOND EXTRACTION: REIMAGINING THE METALS AND MINING ROLE IN A SUSTAINABLE TOMORROW

As the world moves towards a low-carbon economy to arrest the increase in global warming, the mining and metals sector finds itself at the crossroads of green growth and transition.

3 mins

INDIA'S GREEN GROWTH STRATEGY A BLUEPRINT FOR CLIMATE RESILIENCE

A Blueprint for Climate Resilience

3 mins

TRANSITIONING TO SUSTAINABLE GROWTH BY 2025

INDIA'S green growth and transition in 2025 will be shaped by its commitment to sustainable development, economic growth and addressing climate change and materiality issues. As one of the world's fastest-growing economies, India struggles to balance economic growth with environmental sustainability. In this context, integrating clean technologies, carbon markets, and green policies is not just about economic expansion but also about addressing global environmental justice.

3 mins

A SUSTAINABLE PATH TO GLOBAL HUB STATUS

AS India becomes a global economic pow-er, sustainability has shifted from a mere aspiration to a pressing need. Looking ahead to 2025 as a pivotal year for India's economic resilience, the nation must an-chor its growth around green initiatives and smoothly transition to a more sustainable future. In-spired by insights from the automotive sector's sustain-ability leadership, this article envisions the opportunities, challenges, and key initiatives at the intersection of India's green journey and global leadership aspirations.

2 mins

A JOURNEY OF GROWTH, INNOVATION & COLLECTIVE ACTION

WITH increased focus on climate action, diversity and inclusion and sustainable business practices, 2024 was a pivotal year for Environmental, Social, and Governance (ESG) developments globally. India's distinctive socio-economic profile and development agenda demand a tailored approach to ESG considerations. The country's rapid economic growth, rich cultural diversity, and pressing environmental issues have created unique ESG challenges and opportunities. This necessitates a nuanced understanding of India's specific ESG needs and how they differ from global norms. A focused examination of these differences is crucial for businesses, investors, and policymakers seeking to navigate India's ESG landscape effectively.

3 mins

SOFTWARE-DEFINED VEHICLES REDEFINING INDIA'S AUTOMOTIVE FUTURE

India's automotive industry is transforming with the rise of software-defined vehicles (SDVs). By decoupling hardware from software, SDVS are not only redefining vehicle design and functionality but also positioning India as a global leader in this innovation-driven evolution, writes BW Businessworld's Sahil Mohan Gupta.

6 mins

DRIVING THE FUTURE HOW ELECTRIC VEHICLES ARE TRANSFORMING MOBILITY BY 2025

N 2024, India's electric vehicle (EV) sector experienced significant growth, with sales rising 20.88 per cent to 1.39 million units. Primarily driven by technological advancement, this surge is also aided by growing consumer interest and government sops. Despite challenges, 2024 has shown promise and progress, setting the stage for a brighter future.

3 mins

THE YEAR OUR DEVICES BECOME US

In 2025, the convergence of Al, advanced wearables and on-device processing is set to revolutionise human-technology interaction. With major tech players making bold investments and strategic moves, the stage is set for a year of groundbreaking innovation and intense competition

3 mins

FROM AI TO MENTAL HEALTH: A YEAR OF PROGRESS IN INDIAN HEALTHCARE

India's AI healthcare market is experiencing explosive growth, projected to reach US$ 1.6 billion by 2025

3 mins

INDIA'S ADLAND TO RADIATE STRONGLY IN 2025

By embracing technological innovations, understanding regional market nuances, and adapting to regulatory changes, marketers prep to build a healthy year for their brand and the overall market

4 mins

NAVIGATING GROWTH AMIDST CHALLENGES A 2025 ROADMAP

In a conversation with BW Businessworld’s Noor Fathima Warsia, WPP’s Country Manager for India, CVL SRINIVAS, shares insights into the company’s performance in 2024, its growth strategies for 2025, and the evolving dynamics of the advertising and marketing industry.

3 mins

GLOBAL PERSPECTIVE, LOCAL EXECUTION

THE year 2024 was when we broke barriers. Ferrero India has been quietly working away to build its portfolio. This year, the emphasis was on breaking away from the clutter with storytelling, emotional resonance, and innovation to grow, exploring and fortifying digital media.

3 mins

INSPIRING GROWTH STORIES

IN 1994, we embarked on a mission to build the breakfast cereal category in India. Now, 30 years later, we are present in 40 million homes annually. Our growth has inspired many national and regional players to enter this category over the years, but we continue to be the market leaders with a 70 per cent market share. Our journey has been built on one simple principle: providing the 'best in class' nourishment to 'nutrition-seeking, time-starved' consumers without compromising on taste. This year, we applied this principle to renovate our top two brands, Kellogg's Muesli and Chocos, with positive initial results.

1 min

FOR GREATER GOOD

TATA Sampann, a brand by Tata Consumer Products, has made a mark in the Indian food market by focusing on high-quality and wholesome food products. We offer a wide range of products—from unpolished dals to spices with natural oils, high-fibre poha, and premium dry fruits—that reflects our pursuit of preserving the goodness of nature. We are very particular in sourcing the best ingredients, with very few vendors qualifying the stringent criteria.

1 min

INDIA'S MEDIA LANDSCAPE: A YEAR OF TRANSFORMATION

Amid muted growth, India's M&E sector sees significant consolidation as digital transformation accelerates market evolution while traditional segments fight for the advertising pie

3 mins

WILL 2025 FARE BETTER FOR STARTUPS?

While 2024 was marked by resilience amid uncertainty, the startup ecosystem is entering a reckoning phase. The era of rapid funding and overblown valuations is over. What lies ahead is a more measured and recalibrated landscape

3 mins

WHAT LIES AHEAD FOR INDIA'S STARTUP LANDSCAPE

INDIA'S startup ecosystem, often hailed as the heartbeat of innovation, has had a transformative year in 2024. After a period of cautious optimism in the previous years, 2024 saw a significant revival in funding, underpinned by resilience, creativity and a renewed focus on value-driven growth. From Tier-2 and Tier-3 towns to groundbreaking innovations in established sectors, the pulse of entrepreneurship beats stronger than ever. As we step into 2025, the momentum promises to accelerate, with certain trends poised to define the trajectory of India's startup landscape.

2 mins

INDIA's MSMEs IN 2025: BATTLING DELAYS, DEBT, DIGITAL CHALLENGES

For India's beleaguered MSME sector, 2025 stands at a crossroads. The decisions made today will define the future of millions of small businesses and their role in the nation's economic story

7 mins

FINANCING AND TECH FACILITATION KEY TO SUSTAINED GROWTH

AS an election year with two budgets, 2024 was significant for India's micro, small and medium enterprises (MSMEs). This year, the government's focus on driving growth, improving financial inclusion and addressing structural issues within key sectors like MSMEs has become evident. The Union Budget's thrust on enhancing credit access and support, combined with the push for digitisation, financial inclusion and technology adoption, can propel the sector to achieve its true potential.

4 mins

CAUTIOUSLY OPTIMISTIC: FROM A BUMPY RIDE TO A BUMPER BONANZA

In an all-out effort to realign itself to a mainstream growth trajectory in 2025, the retail industry finds itself with a bouquet of opportunities, bracing to unleash the true potential

4 mins

A BOWL OF GOOD HEALTH

With the Indian foodservice market on the up and up, a key trend emerging is the rise of wellness focused healthy food, which we will see more of in the coming year.

3 mins

THE LOOK IN YOUR EYES

Impossible beauty standards often push young people to opt for procedures that might cause irreparable damage to their health. BW Businessworld spoke to ophthalmologists about the dangers of Keratopigmentation or corneal tattooing for cosmetic reasons.

2 mins

Astrology's Role in Charity & Social Impact

CHARITY AND DONATION, described as 'Daan' in Vedic Jyotish, are spiritual and pious practices that harmonise the cosmic energies and sanctify the planetary influences in our lives. Through the selfless act of giving, not only does the receiver benefit, but the giver's soul is uplifted, purifying their heart and mind.

3 mins

End of a Glorious Chapter in Indian Cinema

THE 55TH EDITION of the International Film Festival of India has gone off well. The line up of films is ascribed as one reason for its success and as the festival's Artistic Director of Programming, some credit for this success has been attributed to me. So, the current going can be described as worthwhile for a 65-year-old, who is getting to do what he enjoys and gets paid for it - both in terms of money as well as recognition. And for this present situation of life, I feel grateful to Shyam Benegal.

7 mins

PHIR BHI DIL HAI HINDUSTANI

The Unforgettable Divas of Bollywood by Ambassador Surendra Kumar Retd)

1 min

THE AAP MODEL OF GOVERNANCE

The DelhiModel—A BoldNewRoad Map to Building a Developedindia by Jasmine Shah

1 min

Focus Will Be On Sustainable Housing

Kalyan Chakrabarti, CEO, Emaar India sees the focus on sustainable housing increasing further in 2025

2 mins

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BW Businessworld is a fortnightly magazine that has been published since 1975. It is one of the most popular business magazines in India, and it is known for its in-depth reporting and analysis of the Indian business world. It also features interviews with leading business leaders and entrepreneurs. It's a guide to the ever-changing business landscape.

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