Business

New Delhi, March 11 (IANS) The digital payment transactions (including UPI) surged with over 18,120 crore transactions in 2024-25 (till January this year), with transaction value crossing Rs 2,330 lakh crore, the government said on Tuesday.

The total digital payment transactions have grown from 8,839 crore in FY 2021-22 to 18,737 crore in FY 2023-24, with a CAGR of 46 per cent.

This growth has been driven by Unified Payment Interface (UPI), which grew at a CAGR of 69 per cent, increasing from 4,597 crore transactions in FY 2021-22 to 13,116 crore transactions in FY 2023-24, according to Minister of State of Finance, Pankaj Chaudhary, in a written reply to a question in Rajya Sabha.

The UPI has captured around 70 per cent of total digital payment transactions in FY 2023-24. Further, the digital payment infrastructure (QR code and POS terminals), onboarding of new merchants, and the Third Party App Providers (TPAPs) have also grown substantially during the scheme period, the minister informed.

The government has set up a DIGIDHAN mission to promote digital payments and strengthen the digital payments ecosystem in the country.

An incentive scheme has been implemented since FY 2021-22 to incentivise the banks and other ecosystem partners for promotion of digital payments including promotion of UPI.

While designing the scheme, consultations were held with the relevant stakeholders including the banks. A dedicated Incentive Scheme for Banks (ISB) portal has also been developed to create awareness and seamless data collection.

As a result, the number of banks offering digital payments including UPI payments have increased from 216 in FY 2021-22 to 572 in FY 2023-24, the minister said.

The “Incentive Scheme for the promotion of RuPay Debit Cards and low value BHIM-UPI transactions Person to merchant (P2M)” has significantly contributed to the growth of digital payments in the country.

--IANS

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New Delhi, March 11 (IANS) The overall credit disbursement by banks to priority sectors including agriculture, MSME and social infrastructure in 2019 was Rs 23,01,567 crore, which rose to Rs 42,73,161 crore in 2024, recording an increase of 85 per cent over the six-year period, Finance Minister Nirmala Sitharaman informed the Lok Sabha on Tuesday.

Within priority sector lending, the overall credit disbursement to the agriculture sector has seen steady and positive growth during this period. In 2019, the total disbursement to the agriculture sector was Rs 8,86,791 crore, and by 2024, it significantly increased to Rs 18,27,666 crore. The data includes credit disbursement towards agriculture infrastructure by banks, she said in a written reply to a question in the Lower House.

The overall credit disbursement to the MSME sector has also increased steadily from Rs 10,99,055 crore in 2019 to Rs 21,73,679 crore in 2024.

As the financial landscape continues to evolve and to enhance the quality of banking services for customers, banks have been collaborating with FinTechs for the provisioning of various services to customers. Some of the major areas where FinTechs are further augmenting banking services include opening savings accounts through e-KYC, V-KYC processes leveraging Artificial Intelligence (AI) technology for face recognition and name match, the Finance Minister said.

Digital loan journeys such as account statement analysis, leveraging alternative data in underwriting for quick credit assessment and real-time decision making, and development of innovative products for customers using APIs of banks are also taking place, she added.

The FM further stated that the Government and RBI have also taken various measures to improve the financial soundness of banks and to address the issues related to credit discipline, responsible lending and improved governance, adoption of technology, recovery and reduction of NPAs.

These measures include the setting up of specialised stressed assets management verticals and branches by public sector banks for effective monitoring and focused follow-up of NPA accounts, which facilitates quicker and improved resolution/ recoveries. The deployment of business correspondents and the adoption of the Feet-on-Street model have also boosted the recovery trajectory of NPAs in banks.

A prudential framework for the resolution of stressed assets was issued by RBI to provide a framework for early recognition, reporting and time-bound resolution of stressed assets, with a build-in incentive to lenders for early adoption of a resolution plan.

Minimum provisioning requirements have been prescribed for both standard and non-performing advances and credit discipline was instilled through the enactment of the Insolvency and Bankruptcy Code, set up of the Central Repository of Information on Large Credits and systematic checking of high-value accounts for wilful default and fraud.

Besides, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 and the Recovery of Debt and Bankruptcy Act have been amended to make it more effective. Institution of comprehensive, automated Early Warning Systems in banks to proactively detect stress and reduce slippage into NPAs, the Finance Minister added.

--IANS

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New Delhi, March 10 (IANS) The cost of preparing both vegetarian and non-vegetarian thalis at home declined by 5 per cent in February compared to the corresponding figure for January this year, according to a Crisil report released on Monday.

For the vegetarian thali, the decline was driven by lower vegetable prices, particularly of onions, tomatoes and potatoes, while for a non-vegetarian thali, the cost eased with a decrease in broiler (chicken) prices, the report said.

Going ahead, the arrival of fresh rabi crops is expected to keep vegetable prices subdued, offering continued relief for vegetarian thali costs.

However, temperature conditions in March that have been above normal can impact the shelf life and quality of onions, which need to be stored for the next six months, as well as the quantity and quality of wheat -- the most significant crop of the rabi season, the report states.

The average cost of preparing a thali at home is calculated based on input prices prevailing in north, south, east and west India. The monthly change reflects the impact on the common man’s expenditure. The data also reveals the ingredients (cereals, pulses, broilers, vegetables, spices, edible oil and cooking gas) driving the change in the cost of the thali.

The ICRA report is in line with official figures that India’s retail inflation is on a downward trajectory. Inflation based on the Consumer Price Index fell to a 5-month low of 4.31 per cent in January as prices of vegetables and pulses eased during the month, bringing respite to household budgets, according to figures released by the Ministry of Statistics.

The easing of inflation reflects a steadily declining trend after having touched a 14-month high of 6.21 per cent in October. CPI inflation had declined to 5.48 per cent in November and 5.22 per cent in December.

The food inflation at 6.02 per cent in January 2025 is the lowest after August 2024.

RBI Governor Sanjay Malhotra announced a 25 basis cut in the policy rate from 6.5 per cent to 6.25 per cent in the monetary policy review to accelerate growth amid global uncertainties.

He said that inflation has declined and is expected to moderate further and gradually align with the RBI’s target.

Now, with the retail inflation continuing with its downward trend, the RBI will have more headroom to follow a soft money policy to make more credit available to businesses and consumers, which will propel economic growth.

--IANS

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New Delhi, March 8 (IANS) India’s scientific leadership is now led by women and they are at the helm of the country’s space and research missions, Union Minister Dr Jitendra Singh said on Saturday.

For example, the Aditya-L1 mission is headed by a woman, the Council of Scientific and Industrial Research (CSIR) and six of its laboratories are led by women, and the Chandrayaan-3 mission had a woman in a leadership role.

“This marks a significant shift in our scientific landscape,” he said while addressing the International Women’s Day 2025 celebrations at CSIR-National Physical Laboratory (CSIR-NPL).

Dr Singh reflected on the changing landscape of Indian science and administration, noting that women have moved beyond participation to leading key national projects.

“We have graduated from an era of women’s participation to a women-led process,” he remarked, adding that scientific fields once dominated by men are now witnessing an influx of talented women leading from the front.

The minister cited the examples of top-ranking women in India’s civil services, a domain that was once male-dominated but now sees women consistently securing top positions.

“There was a time when women were rare in STEM education, let alone leadership roles. Today, not only are they excelling, but they are also setting new benchmarks,” he said.

Dr Singh noted that the Union Public Service Commission (UPSC) results in recent years have been overwhelmingly led by women, reflecting a broader shift in India’s socio-professional fabric.

He also highlighted Prime Minister Narendra Modi’s initiatives in promoting women’s empowerment in science, from increasing women’s representation in Republic Day parades to opening up defence institutions like Sainik Schools and military academies for female cadets.

He shared that this year, for the first time, PM Modi handed over his personal social media handle to selected women achievers on International Women’s Day—two of whom hailed from India’s space and nuclear sectors.

Dr. Singh revealed that the upcoming test flight for the Gaganyaan mission will feature a robotic astronaut named ‘Vyommitra,’ a female humanoid.

This, he said, is a symbolic acknowledgment of the growing role of women in India’s space endeavours.

Dr N. Kalaiselvi, Director General of CSIR and Secretary, DSIR, highlighted the growing role of women in science and technology, emphasising that today’s women are not just participants but leaders in shaping India’s scientific landscape.

—IANS

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New Delhi, March 8 (IANS) India is poised to be among the top 5 ship-building countries in the world by 2047, with additional shipbuilding capacity of 4 million gross registered tonnage (GRT), Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, said on Saturday.

At the two-day ‘Chintan Shivir 2025’ in Srinagar, the minister directed the formulation of suitable policies and skill development initiatives, while encouraging collaboration with the state governments.

He reviewed undergoing projects of the ministry worth Rs 2 lakh crore, and drew up a goal, after consultative deliberation with the experts of completing at least 150 projects by September this year.

The event focused on strengthening India’s shipbuilding and repair capabilities, improving financial and digital solutions for maritime infrastructure and pushing for a greener, more sustainable shipping industry.

Emphasis was laid on achieving targets set out in Maritime Amrit Kaal Vision (MAKV) 2047.

Among the major announcements made at the Chintan Shivir was establishing the Bharat Container Shipping Line under the Shipping Corporation of India (SCI).

“All major ports to tender for at least 1 Green Tug within the next 3 months. The Harbour Craft Green Transition Programme will be launched to accelerate the adoption of clean energy solutions across Indian ports,” said the minister.

A Coastal Green Shipping Corridor will be established, with the Kandla-Tuticorin corridor, being the first to be developed in partnership with SCI, Deendayal Port Authority (DPA) and V.O. Chidambaranar Port Authority (VoCPA).

Inland Waterways Authority of India (IWAI) will invest Rs 100 crore in 3 National Waterways in Jammu & Kashmir, boosting inland water transport and connectivity in the region.

The Decade of Sagarmala Vision will be celebrated in March 2025. A Sagarmala Startup and Innovation Initiative (S2I2) will be launched, accompanied by the establishment of Maritime Innovation Hubs (MIHs).

India Ports Services Limited (IPSL) will be set up as a national platform for all major ports, providing end-to-end services to enhance efficiency and competitiveness. The Mumbai International Cruise Terminal to commence commercial operations by April 2025, it was announced.

The Sagarmala Digital Centre of Excellence (CoE), in collaboration with Centre for Development of Advanced Computing (C-DAC), will be established to drive the digital transformation of the maritime sector.

These initiatives aim to enhance port competitiveness, attract foreign investment, and drive economic growth.

“Under the visionary leadership of Prime Minister Narendra Modi, India’s maritime sector has witnessed remarkable growth. Our commitment to transforming ports and waterways remains unwavering,” said Sonowal.

—IANS

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Hyderabad, March 8 (IANS) The ‘Fisheries Startup Grand Challenge 2.0’ will support 10 winning startups in manufacturing and related areas with Rs 1 crore in funding, it was announced here on Saturday.

The Department of Fisheries organised the ‘Startup Conclave 2.0’ here to promote innovation in the fisheries sector.

As part of this initiative, the Fisheries Startup Grand Challenge 2.0 was launched by Union Minister Rajiv Ranjan Singh to support startups in manufacturing and related areas.

The programme aims to foster entrepreneurship, technological advancements, and sustainability in fisheries and aquaculture, enhancing production and efficiency.

According to the Ministry of Fisheries, Animal Husbandry and Dairying, each winning proposal will receive structured incubation support from ICAR (ICAR-Central Institute of Fisheries Technology), National Fisheries Development Board (NFDB) or other affiliated institutions under the Department of Fisheries.

These incubators will play a crucial role in mentoring startups, offering capacity-building programs, and providing access to manufacturing infrastructure to help them scale their solutions effectively.

The NFDP mobile application was also launched during the Fisheries Startup Conclave 2.0 to expand access to Pradhan Mantri Matsya Sampada Yojana (PM-MKSSY) benefits.

The mobile app has been developed and is now available on the Google Play Store. The app offers a seamless interface for users particularly startups to navigate various modules and avail scheme benefits.

The NFDP serves as a platform for creating digital work-identities for fishers, fish farmers, vendors, and processors, enabling their seamless integration into formal financial and welfare systems.

India’s fisheries and aquaculture sector sustains 3 crore livelihoods, driving employment across the value chain.

Since 2015, the government has invested Rs 38,572 crore through various initiatives and schemes to promote sustainable growth.

This rapid expansion has spurred the rise of over 300 fisheries start-ups, which are leveraging blockchain, IoT, and AI to develop innovative, commercially viable solutions that enhance productivity, ensure traceability, and improve value chain efficiencies.

--IANS

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New Delhi, March 8 (IANS) A new study by the Department for Promotion of Industry and Internal Trade (DPIIT) on Saturday recommended policy measures to enhance gender diversity in the rapidly growing logistics industry, which is projected to reach $380 billion by 2025.

Amardeep Singh Bhatia, Secretary, DPIIT, released the study titled "Enabling Women's Participation in India's Logistics Sector,” prepared in collaboration with the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH under the Indo-German Development Cooperation project, “Climate Friendly Green Freight Transport in India (Green Freight Project).”

The study highlighted key insights and strategies to enhance women's participation in India's logistics sector.

It assessed the current status of women's participation in India’s logistics sector, analysed key challenges hindering their inclusion, and recommended policy measures to enhance gender diversity.

Bhatia emphasised the significance of the study in the context of the National Logistics Policy (NLP) and the government's vision for women-led development.

"As we move towards Viksit Bharat, under the guidance of the Prime Minister Narendra Modi, the one thing that will take the country forward is women-led development. Ensuring women’s participation in high-growth sectors like logistics is not only a matter of equity but also an economic necessity," he stated.

Bhatia further highlighted the pivotal role of education in transforming perceptions and empowering women.

"The capability of women is equal to that of men; what is needed is a shift in mindset. Women may have different requirements, which the workplace infrastructure and ecosystem must be able to provide,” he noted.

The study identified both supply-side challenges, such as gender disparities in education and skill training, and demand-side barriers, including workplace culture and infrastructure limitations.

It suggested a three-tiered approach involving interventions at the ecosystem, industry, and firm levels to create a comprehensive framework for change.

--IANS

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New Delhi, March 8 (IANS) Union Minister for Railways and Electronics and IT, Ashwini Vaishnaw, on Saturday laid the foundation stone for four manufacturing units at the electronics manufacturing cluster in Telangana.

At Divitipally in Mahabubnagar district, the foundation stone was laid for upcoming Giga Factory-1 of Amara Raja company, ground-breaking ceremony was held for critical minerals refining and battery recycling of Lohum company, ground-breaking ceremony was held by Scell Energy for its cell casing manufacturing, and Altmin laid the foundation stone for its first LFP-CAM Giga Factory.

“Electric mobility remains a focus area for the government and we are committed to developing the right infrastructure and ecosystem for the promotion and adoption of EVs. We welcome Indian innovation and manufacturing initiatives and look forward to the success of this endeavour,” said Vaishnaw.

As part of its objective to strengthen the electronics manufacturing ecosystem in India and give boost to EV manufacturing along with its supply chain, MeitY notified Modified Electronics Manufacturing Cluster (EMC 2.0) Scheme under which, it had accorded approval last year for establishment of electronics manufacturing cluster project over an area of 377.65 acres at Divtipally village.

Amara Raja Advanced Cell Technologies is establishing its Giga factory over 262 acres of land with 16 GW Cell Manufacturing and 5 GW battery pack plant, with a projected investment of Rs 9,500 crore over a period of 5 years.

Once operational, the Amara Raja Giga Corridor is expected to create direct employment for 4,500 people and a similar number of indirect jobs in the state, making significant contributions to the socio-economic development of the region.

The event saw the participation of State Minister for Information Technology and Industry D. Sridhar Babu.

The electronics manufacturing cluster is fully occupied with allotment of 307.47 acres of land to four companies -- AMARA Raja, Altmin, Loham Material and Scell Energy -- with a projected investment of Rs. 10,574 crore and committed to provide employment to 19,164 people.

--IANS

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New Delhi, March 7 (IANS) At least 225 crore Aadhaar authentication transactions and 43 crore e-KYC transactions were carried out in February, marking 14 per cent yearly growth, the government said on Friday.

The e-KYC service has been instrumental in providing a seamless and secure experience for customers in both banking and non-banking financial services. It has also contributed to improving the ease of doing business across various industries.

According to the Ministry of Electronics & IT (MeitY), by the end of February 2025, the total number of Aadhaar authentication transactions had surpassed 14,555 crore, while the total e-KYC transactions exceeded 2,311 crore.

Face authentication using Aadhaar is also gaining popularity. In February alone, 12.54 crore Aadhaar face authentication transactions were carried out, marking an all-time monthly high since the introduction of this feature in October 2021.

A total of 97 entities have been onboarded to use Aadhaar’s face authentication technology, with Kotak Mahindra Prime Limited, PhonePe, Karur Vysya Bank, and J&K Bank being the latest additions.

Since its launch, Aadhaar face authentication transactions have crossed 115 crore, with nearly 87 crore of these occurring in the current financial year alone, the MeitY said.

The AI/ML-based face authentication solution, developed in-house by UIDAI, is now widely used across finance, insurance, fintech, health, and telecommunications.

Various central and state government departments are also leveraging this technology to ensure the smooth delivery of benefits to targeted beneficiaries.

With its growing adoption in banking, finance, and other sectors, Aadhaar continues to play a crucial role in India’s digital transformation, the Ministry said.

Meanwhile, in January, the Aadhaar authentication transactions in India crossed 284 crore, reflecting the growing role of digital identity verification in daily life.

This was a 32 per cent increase compared to the same month last year when 214.8 crore transactions were recorded, according to the Electronics and IT Ministry.

--IANS

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Mumbai, March 7 (IANS) Phi Commerce, a SaaS-based omnichannel payment solutions provider, saw its losses surge threefold in the fiscal year ending March 2024 (FY24) to Rs 28.9 crore as compared to Rs 9.4 crore in the previous fiscal year (FY23).

The primary reason behind the surging losses was the company’s expansion efforts and rising operational costs.

The company’s total expenses soared by 137 per cent to Rs 116.6 crore in FY24 from Rs 49.2 crore in the previous year.

Payment processing charges were the biggest cost, rising 2.6 times to Rs 70.5 crore and accounting for 60 per cent of total expenses.

Employee benefit costs also jumped by 109 per cent year-on-year (YoY) to Rs 27.8 crore. Other expenses, including legal fees, platform support charges, and share-based compensation for consultants, further added to the rising costs.

Due to the sharp increase in spending, Phi Commerce’s losses widened substantially. The company spent Rs 1.44 to earn every Rs 1 in FY24.

Its return on capital employed (ROCE) stood at (-) 40.18 per cent, while the EBITDA margin was (-) 35.11 per cent.

However, the Pune-based firm recorded a significant jump in operating revenue, reaching Rs 81.2 crore in FY24, up from Rs 34.7 crore in FY23, according to its financials.

The company primarily earns revenue from commissions on GMV settlements with merchants, which contributed Rs 72.3 crore, or nearly 90 per cent of its total operating income in FY24.

It also made money from technology infrastructure and value-added services for payment aggregation.

Additionally, the firm generated Rs 3.4 crore in interest income from fixed deposits and non-current investments.

As of March 2024, Phi Commerce had total current assets worth Rs 107.7 crore, with Rs 64.6 crore held in cash and bank balances.

The company has raised $14 million in funding so far, including a $10 million Series A round led by BEENEXT, with participation from Opus Ventures.

Opus Ventures remains its largest external stakeholder, followed by BEENEXT, according to data from TheKredible.

Phi Commerce operates in the digital payments space with its flagship product, PayPhi, which provides businesses, banks, and networks with a unified omnichannel payments platform.

--IANS

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