India continues strong growth trend for foreign investment

/0 Comments/in , /by

India’s appeal to global investors remains strong, driven by a young and dynamic workforce and the government’s ongoing emphasis on initiatives like ‘Make in India’, government officials told the World Economic Forum (WEF) in Switzerland.

Speaking at the ‘FDI in India’ event, Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), noted the government’s success in liberalising foreign direct investment (FDI).

“More than 90% of our FDI is coming via the automatic route,” Bhatia said, underscoring the government’s commitment to attracting investments, particularly in manufacturing sectors that cater to both local and export markets.

Key areas for development for India include electronics and renewable energy, and sectors with high employment potential, such as textiles, footwear and pharma.

Neeraj Aggarwal, Asia-Pacific Chair at Boston Consulting Group (BCG), highlighted the growing opportunity for India in global manufacturing, supported by the country’s cutting-edge digital infrastructure, including the Unified Payments Interface (UPI), which has become a global benchmark.

“The other thing which is interesting is this whole shift to AI… India, which has historically had a strength in services, could benefit from this change,” Aggarwal told delegates.

However, while incentives are supporting India’s manufacturing ambitions, challenges remain. Sanjeev Krishan, Chairman of PwC India, pointed out the need for logistics and digital competitiveness improvements. He cited Malaysia and Indonesia as examples of countries excelling in these areas.

A recurring theme among panellists was the need for skill development to leverage India’s demographic advantage fully. “India’s demographic is India’s strength, and we need to harness it, which means there has to be a huge focus on skilling,” Krishan said. The focus on education and skills training is essential to meet the growing demand for a tech-confident workforce to cater to the needs of global companies.

The discussion also touched on India’s rise as a promising market, with Kartikeya Sharma, President of AB InBev India, noting the “exponential scale” of India’s growth potential.

In the real estate sector, Niranjan Hiranandani, Managing Director of Hiranandani Group, highlighted the impact of structural reforms that have made it easier to attract FDI. Hiranandani said the return on investment (ROI) in commercial real estate now surpasses that of the residential sector. He added that if more FDI and internal funds flow into the real estate market, India could see GDP growth accelerate from 6.5% to 10% in the next two years.

Global leader in technological innovation

Delegates at Davos also heard how India is emerging as a global leader in technological innovation and economic growth, recognized for its transformative journey as a start-up and digital innovation hub.

At the Swiss resort, the Centre for the Fourth Industrial Revolution (C4IR) India launched its six-year impact journey report on the inaugural day of the forum.

The report said: “The WEF’s partnership with India spans over four decades. It has fostered collaborative efforts across government, business, academia, and civil society. These partnerships have driven significant initiatives, including AI-driven agricultural programmes, healthcare solutions, and sustainable urban frameworks, resulting in tangible improvements for millions of citizens.

“C4IR India has made notable strides in addressing complex challenges through multi-stakeholder collaboration, improving livelihoods, and providing better access to essential services. With its initiatives now touching the lives of 1.25 million people, it is advancing agriculture, healthcare, and urban development technologies, setting benchmarks for the Fourth Industrial Revolution.

“Looking ahead, the Centre is focusing on cutting-edge areas such as AI, climate technology, and space technologies, with plans to expand its reach to 10 million citizens. Key projects like AI for India 2030, the Space Economy initiative, and the AVIATE (Aviation – Innovation Autonomy and Technology for Everyone) India initiative underscore India’s ambition to leverage technological advancements for societal good and position itself as a digital and innovation space leader.”

According to its Mission Statement, “the World Economic Forum is the International Organization for Public-Private Cooperation. It provides a global, impartial and not-for-profit platform for meaningful connection between stakeholders to establish trust, and build initiatives for cooperation and progress.”

China banking on AI to boost efficiencies across the board

/0 Comments/in , /by

Artificial intelligence will take technology to new heights, empowering the real economy with industry integration, a leading expert told the 15th China Internet Industry Annual Conference 2025.

Wu Hequan, from the Chinese Academy of Engineering, said that “phones, computers and such products will be redefined by AI”, adding that AI will be applied to new scenarios in all walks of life.

He said accelerated integration of AI will bolster the automotive industry, and satellite remote sensing applications are also projected to improve with AI and satellite industry integration. Wu added that AI can optimize the supply chain to enhance operational efficiency.

In terms of new industrialization, AI contributes greatly to the gradual improvement of infrastructure construction, according to Du Guangda, deputy director general of the Science and Technology Department, Ministry of Industry and Information Technology.

By the end of 2024 there were more than 4,500 AI enterprises in China, with innovations of smart chips, development frameworks and general-purpose large models emerging. China’s computing power ranks second place worldwide.

Meanwhile, 5G base stations have exceeded four million nationwide and 421 national-level smart manufacturing demonstration factories have been cultivated with the integration of AI and the manufacturing industry. In addition, 72 Chinese enterprises have been selected as global ‘lighthouse factories’, the cutting-edge manufacturing sites, accounting for 42% of the world’s total.

Du added that the government was seeking to accelerate the construction of AI computing infrastructure, to promote the deep integration of AI with all walks of life, and to empower the development of the real economy.

Trade-in scheme extended to digital devices

China will significantly increase the sale of special treasury bonds to provide greater support for consumer goods trade-ins this year, extending the subsidies to digital devices such as smartphones, tablets and smart wearables to drive economic growth through consumption-boosting initiatives, according to analysts.

While the trade-in policies have in the past centred on traditional big-ticket items like cars and household appliances, the latest decision to include digital products signals the country’s determination to boost demand in the face of rising global uncertainties, they added.

The National Development and Reform Commission (NDRC), the country’s top economic regulator, said that China will provide consumers with a 15% discount on the purchase of such digital gadgets not exceeding 6,000 yuan (£660), with a 500 yuan subsidy cap per item.

The subsidy for digital products will be open to all eligible brands and models, said Li Gang, an official with the Ministry of Commerce, adding that the country will allow equal participation from a diverse range of enterprises, including both online and offline players, as well as companies of various ownerships and sizes.

Digital devices have become essential tools for communication, entertainment and productivity in modern society. By incentivizing their replacement and upgrading, the government aims to directly stimulate consumer willingness to buy, said Zhu Keli, founding director of the China Institute of New Economy.

China’s smartphone shipments are projected to reach 289 million units by 2025, representing a 1.6% year-on-year increase, with the market expected to maintain a stable growth trajectory in the following years, according to a report by IDC, a leading global market intelligence, data, and events provider for the information technology, telecommunications, and consumer technology markets.

Zhu added that the trade-ins can create a virtuous cycle, where increased consumer demand accelerates product turnover and spurs enterprises to invest in innovation, technological advancement, and supply chain optimisation. This can lead to a more dynamic and competitive digital products market, Zhu said.

Major Chinese phone brand Honor told the China Daily website that enterprises in relevant sectors will be able to reap the benefits of trade-in initiatives and fully leverage China’s vast consumer market, thereby sustaining the ongoing recovery and driving the next phase of growth in the domestic smartphone market.

The funds allocated to support the consumer goods trade-in initiatives are expected to double by the end of 2025, reaching 300 billion yuan, said Wang Qing, chief macroeconomic analyst at Golden Credit Rating International.

This will drive some 750 billion yuan in new consumption, equivalent to a 1.5 percentage point acceleration in the year-on-year growth rate of total retail sales of consumer goods in 2025, Wang added.

UAE creates more blue collar jobs in 2024

/0 Comments/in , /by

The UAE job market has seen a significant surge in demand for both blue-collar and entry-level jobs, although white-collar recruitment continues to decline, according to a report by UAE-based recruitment company Innovations Group.

Offering insights workforce trends in the UAE, the study shows that blue-collar jobs have grown by 69% in 2024, primarily due to both residential and industrial construction. Overall, however, blue-collar hirings declined by 21% in 2024, despite the rising number of open positions, which indicates challenges in terms of attracting the right talent.

While the UAE government’s focus on economic diversification and infrastructure development has led to a considerable influx of new businesses, there has also been a simultaneous decline in the white-collar job market in the country.

Recruitment was down by 21% in 2024, driven by companies centralizing their support functions, such as customer service and finance, in offshore global hubs.

However, sales and business development positions remain in high demand due to their crucial role in driving growth for start-ups and new companies entering the UAE market.

Although companies continue to face challenges in sourcing talent for such sales and business development positions, the roles have remained in high demand. Demand for workers at entry-level positions, like receptionists and front-office staff, have also risen, with a specifically increased demand for foundational staff to support new commercial ventures.

“The UAE is a dynamic hub offering a pool of skilled workforce,” said Nikhil Nanda, Director at Innovations Group. “It is important for specialised recruitment agencies to develop strategic approaches to address hiring challenges and skill mismatches.”

In the coming 12 months, some key trends will shape job market in the UAE, the report said. The trend towards remote working is expected to continue in 2025, with more organizations adopting flexible work arrangements, including home and hybrid work models.

The rapidly advancing AI technologies are also poised to transform the recruitment process. AI tools will continue to be leveraged at work, with 74% of professionals in the region agreeing that AI tools can help them do their job better. As such, AI advancements are expected to speed up the entire recruitment process by automating tasks like CV screening and interview scheduling, improving candidate sourcing, and reducing bias through data-driven decision.

UAE issues $790m VAT refunds for citizens

The UAE has granted $790m in tax refunds for nationals building new homes, and also shared details of VAT waivers for tourists, the Federal Tax Authority (FTA) has confirmed

It said its VAT-refund system for UAE nationals for the construction of new residences and the VAT-refund system for tourists had “achieved outstanding results in 2024, due to a continuous development of digitalisation plans”.

According to FTA statistics, the number of applications approved during 2024 for VAT refunds for UAE nationals hit 7,520 applications, worth a total AED704.38m ($192m).

The authority said that, regarding the digital VAT-refund scheme for tourists, the number of retail outlets linked electronically to the system “has witnessed a remarkable expansion across the UAE over the past years”.

It said the number of outlets registered for VAT-refund increased to 17,847 outlets by the end of 2024, compared to 16,357 outlets by the end of 2023 – an increase of 9% year-on-year.

Khalid Ali Al Bustani, Director-General of FTA, said: “The FTA pays great attention to the continuous development and update of its digital systems in accordance with global best practices, in line with the UAE’s digital transformation strategy.

“Indicators show that FTA’s efforts in this field have positively reflected on the quality and performance of its mandate in general, including the digital systems for VAT refunds for eligible categories.”

He added: “This has been achieved by introducing more facilities to streamline and accelerate the procedures related to self-service tax refund systems.

“Building on the positive results of the FTA’s development of digital services, during 2024, in 2025 we will continue to launch various projects and initiatives in the field of digital transformation in the tax sector to keep pace with the smart transformation strategy laid out by our wise leadership, which entails transformation of all services based on seamless and proactive digital procedures, supporting efforts to reduce bureaucracy and maintain high levels of customer happiness.”

UK-India free trade talks gather momentum

/0 Comments/in , /by

Britain’s Trade Secretary has announced he is to visit India this month to focus on finalising the Free Trade Agreement (FTA) negotiations as part of the UK government’s ambition to elevate the bilateral partnership across all sectors.

Addressing the annual India Global Forum’s (IGF) in London, Jonathan Reynolds, Britain’s Secretary of State for Business and Trade, highlighted the strength of the bilateral trading relationship which stood at £41 billion in the year to September 2024.

However, the minister went on to reaffirm the British government’s commitment to improve trade between India the UK, respectively the fifth and sixth largest economies in the world.

“I want to reaffirm the UK’s commitment to deliver growth for both countries through the trade deal that we’re talking about, through the Comprehensive Strategic Partnership and the Technology Security Initiative,” Reynolds said.

The visit makes good the promise made by UK British Prime Minister Sir Keir Starmer on the early re-start in 2025 of UK-India FTA talks. Starmer made the pledge at a meeting with Prime Minister Narendra Modi at the G20 Summit in Brazil last November.

Reynolds said: “I believe a comprehensive FTA and Bilateral Investment Treaty would be important to the UK, but I also believe it would show the world India is serious about its relationships to global trade, strengthening supply chains with trusted partners and delivering substantial mutual benefits for business and consumers across both countries.

“And the rest of the world would stand up and take notice of an agreement of that kind.”

He added: “India is a top priority partner for the UK, and we want to elevate that ambition across all aspects of our relationship, but also to take it to new heights.”

Reynolds also welcomed the launch of a new report by IGF’s UK-India Future Forum (UKIFF), entitled ‘Sentiment to Success Future-proofing the UK India Partnership’, which reviews the areas of progress along with immediate and actionable strategies to strengthen the bilateral partnership.

IGF Chairman Manoj Ladwa said: “The world is at a tipping point, and sentiment alone won’t sustain relationships in this era of uncertainty. The UK-India partnership must pivot from nostalgia to action, leveraging India’s rising global influence and the UK’s unmatched expertise.”

Co-hosted with the High Commission of India in the UK, the annual event brought together leading figures from the world of politics, business, finance and technology within the India-UK corridor.

Central bank chief flags rise in digital frauds

While acknowledging the important role played by banks in building resilience in the domestic financial system, the Reserve Bank of India (RBI) Governor Sanjay Malhotra has flagged the rise in digital frauds and asked banks to establish robust systems to thwart the criminals.

Malhotra recently held meetings with the managing directors and chief executives of both public sector and private sector banks in Mumbai. These interactions are part of the Reserve Bank’s continuous engagement with the senior management of the entities it supervises.

In a statement, the RBI maintained that the Governor, while highlighting IT risk management and cyber security, urged banks to ensure they have an enhanced oversight over third-party service providers to tackle the risks they present. “The need for RBI and banks to work together closely was emphasized [at the meetings] and suggestions were sought from the banks on enhancing the ease of doing business,” the central bank’s statement continued.

Malhotra urged banks to ensure continued financial stability, deepen financial inclusion, improve digital literacy, enhance availability and affordability of credit, strengthen customer service and grievance redress mechanisms, and continue to invest in technology and digital infrastructure.

And he emphasized the need for RBI and the banks to work together, and he sought suggestions from the banks on enhancing the ease of doing business.

China looks to ASEAN to help boost digital sector

/0 Comments/in , /by

China is set for closer collaboration on digital projects with ASEAN member countries, with new frameworks and action plans aimed at further strengthening digital infrastructure, promoting cloud computing and enhancing artificial intelligence governance.

Xu Chaofeng, director-general of the Ministry of Industry and Information Technology’s Department of International Cooperation, the country’s top industry regulator, said that the country aims to develop a five-year action plan with ASEAN on building a sustainable and inclusive digital ecosystem.

“The plan will prioritize digital, intelligent and green transformation, with the aim of strengthening policy communication, deepening development consensus and fostering a new digital industry ecosystem,” Xu said.

The comments follow the 5th ASEAN Digital Ministers’ Meeting and the second China-Thailand Ministerial Dialogue on Digital Economy Cooperation, which took place recently. Thailand is also an ASEAN member country.

Zhang Yunming, vice-minister of industry and information technology, who led a delegation to Thailand, outlined the latest digital developments and policies, as well as future co-operation plans between China and Thailand.

He said digital infrastructure remains a cornerstone of the partnership. “China has already made significant strides in enhancing ASEAN’s digital backbone, with over 30 cross-border terrestrial optical cables linking China with various ASEAN markets,” Zhang said.

To advance the collaboration, China is pushing for the establishment of an Asian undersea cable association, alongside a computing power interconnection partnership plan.

And Xu Chaofeng commented: “Digital infrastructure is the foundation for digital development and is essential in bridging the digital divide. More efforts will be made to enhance cooperation with ASEAN members in areas such as 5G, cloud computing, data centres and the internet of things.”

He said that AI was another key area for deeper co-operation between China and ASEAN, and the two sides are also committed to advancing AI technology, industry standards and governance to ensure fair and equitable development across all member states.

To facilitate the collaboration, China and ASEAN members plan to establish a China-ASEAN artificial intelligence cooperation centre, which will host AI projects and drive digital transformation initiatives. “We must ensure that AI development and governance are based on equal rights, opportunities and rules for every nation,” Xu said.

While digital infrastructure and technological advances are crucial, the collaboration also extends to enhancing digital skills and building talent in the region, he added.

Yu Xiaohui, president of the China Academy of Information and Communications Technology, said: “China’s achievements in digital innovation, particularly in 5G and AI, complement ASEAN’s unique needs in industries such as tourism and agriculture, paving the way for broader international cooperation.”

The ASEAN member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

China’s economy likely to grow around 5% this year and beyond

China is firmly entrenched in a ‘medium growth’ phase as its economy transitions into a more mature state, and its GDP will likely grow around 5% this year and beyond, according to management consultancy McKinsey China.

Despite facing challenges both at home and abroad, including geopolitical tensions and a downturn in the housing sector, McKinsey China chairman Joe Ngai said he was optimistic about China’s long-term economic prospects, emphasizing the country’s continuing role as a key driver of global growth.

“I think that China is solidly in a medium growth phase as we are transitioning into a more mature economy,” Ngai said in a recent interview with China Daily.

Ngai added that China’s growth remains robust relative to the rest of the world, accounting for approximately one-third of global GDP growth.

Ngai also expressed optimism about the country’s emerging technological leadership in fields like electric vehicles, solar energy and artificial intelligence.

“In many technologies right now, China is very competitive globally. We are growing in areas like electric vehicles, solar panels, AI and robotics, and these are areas where we see a lot of upsides.”

A new report released by McKinsey Global Institute has identified 18 potential fast-growing sectors of the future, ranging from AI software and services to robotics that could reshape the global economy.

“The good news is China is very active in those 18 sectors. China actually has quite a number of very good company investments and progress in these areas,” Ngai said.

In addition to technological advancements, Ngai emphasized that China’s economic future will be shaped by its ability to boost domestic consumption, which he described as “underdeveloped”, but possessing significant potential. “Consumption demand is actually in the bank,” Ngai said. “Chinese households have saved up in recent years, creating a reservoir of demand waiting to be unleashed.”