Internet-Based Apps Contributed Rs 1.4 Lakh Cr to India’s GDP in 2015-16: Study

Internet-based applications have contributed Rs 1.4 lakh crore to the country's GDP in 2015-16, a report by the think-tank organisation, ICRIER. along with the Broadband India Forum said.

As per the study, a 10 per cent increase in India's total Internet traffic, delivers an average increase of 3.3 per cent to India's GDP.  Whereas a 10 per cent increase in mobile Internet traffic delivers an average increase of 1.3 per cent to the country's GDP.

A 17 per cent increase in India's Internet traffic during the period 2015-16, resulted in an absolute increase of $103.9 billion (Rs 10,390 crore) in GDP during the year. Applications contributed a minimum of $20.4 billion (Rs 2,040 crore) in the year 2015-16 to India's GDP. "The Internet economy could contribute up to $537.4 billion to India's GDP in 2020, of which a minimum of $270.9 billion (Rs 27,090 crore) could be attributed to apps," the study said.

Companies covered in the study include Makemytrip, Practo, PayTM, Urbanclap, Netflix, Wynk, Byju's, Truecaller, farMart and MP Mobile. The case studies captured different aspects of impact created, such as the potential for increased income and job creation, government services, lowering costs for buyers and sellers, creating a platform for smaller businesses, popularising the use of vernacular language and enabling women safety among others.

Apps have evolved from being offline, and locked-in to devices, to being connected online and available across different operating system platforms. This disruptive innovation resulted in what is commonly referred to as the 'app economy'.

India now tops the chart in Google Play downloads when compared to Indonesia, Russia, Brazil and USA. The top downloaded apps from Google's Playstore by Indian users are Whatsapp and Facebook Messenger. Indigenous entertainment apps such as Hotstar and Jio TV have also climbed the charts as popular apps among Indians.

The evolution of apps had regulators of legacy services such as telecommunications, cable and broadcast, commercial public transport among others scrambling to manage the disruption.

"We found that the ecosystem's contribution went beyond just economic into social areas such as mainstreaming the differently abled and enabling women safety among others," said Rajat Kathuria, Director and Chief Executive, ICRIER.

The growth of the app economy in India has been impressive. App Annie, an app-analytics company, recently ranked India as the fourth largest app economy in the world, with annual app downloads to touch 7.7 billion by the end of 2017.


"Internet apps and services are disrupting traditional industries. Regulation, globally, is evolving to strike the right balance between protecting consumer/business interests and encouraging the ecosystem to innovate further," said TV Ramachandran, President, Broadband India Forum.

India’s Future Lies in Innovation, Says RV Despande at CII Innovation Summit 2017

Large and Medium Industries Minister R V Deshpande called for more participation of the private sector companies in the Research and Development (R&D) processes. He also stressed that by encouraging startups in the country, India can look forward towards more inventions and innovations.

“Innovation and technical capability are the key drivers of economic growth. India has the potential to become an innovation and technology powerhouse. However, it needs the right environment to reap the benefits,” he said empasising on the need for R&D in the country.

The country’s overall R&D investment is less than 1% of GDP, with private sector accounting for less than 0.33% of GDP versus a desirable 1%, he added.

Speaking at the India Innovation Summit, organised by the Confederation of Indian Industries (CII), Deshpande called on the private sector to partner with the government and invest in R&D, skill development with a focus on job creation. According to him, job creation will be the biggest challenge in the country.

According to various estimates, India will have the youngest population in the world by 2025. “For India’s young generation to be industry ready there is an urgent need to change the curriculum according to the needs of the industry and invest in human capital through education, knowledge and skill development initiatives,” he added.

Terming GST as a game changer, he said it will make the industry more transparent and aid in ease of doing business. He hoped that ultimately there will be only one tax slab for GST, as prevalent in most other countries.

More than 20 companies, including the startups are participating in the two-day summit. India’s start-up ecosystem is developing at a rapid pace. The country has more than 19,000 technology startups and the sector has seen funding up to $3.5 billion in the first half of 2015 alone. According to Tracxn data, India venture capital backed companies received a total funding of $12 billion in the past two years.

Kris Gopalakrishnan, Co-founder of tech-gaint Infosys emphasised on the use of ‘innovation index’ for the futurish outlook about the economy.

RERA Notification Covers On-Going Projects in Bengaluru: GST Price Cut Only After 3-4 Months: CREDAI

This week saw the much awaited notification of RERA in the State by the Karnataka government. Contrary to the popular view that the Act would favour the developer community, the Act woks in the interest of existing as well as future home buyers. CREDAI Bengaluru clarified the Act by explaining its implementation and the impact on the existing and upcoming projects.

Asserting that RERA made a balancing act between the buyer and promoter, Ashish Puravankara, President, CREDAI Bengaluru stated that it would have been further effective if the Karnataka Government’s notification had lowered the threshold of the plot area that came under the Act to 100 -150 Sqm as against the prevailing 500 Sqm. “This would have helped check the deviations happening in this segment”, he contended.

Government has taken steps to ensure that ongoing projects are brought under the ambit of RERA. According to the Karnataka Government notification, projects that have completed 60 per cent execution of sale deeds need not make the application to the regulatory authority. “It is to be noted here that sale deeds are executed only after the projects are completed, which is in line with the Act.” stated Ashish Puravankara.

Likewise, layouts that have handed over charge of civic infrastructure to the local authorities are rightfully exempted as such handing over happens only after the full completion of the project, he added. “The same is applicable to exemption of apartments that have handed over the maintenance of the common areas to the residents’ associations as such projects are completed and mostly occupied too.”

The notification also exempts projects that have applied for occupancy certificate (OC) as the same is applied only when the project is completed. In the case of projects that have received partial OC, the exemption is accorded only to that phase which has received the OC.

Stating that all other projects that did not fall in the above categories will come under the purview of RERA, Shankar Sastri, President, CREDAI Karnataka said, “The government of Karnataka has meticulously notified the Act in letter and spirit as compared to some other States.”

While acknowledging that the RERA is stringent on several issues, bringing strict compliance on the part of developers as well as laying pressure to comply with multiple guidelines, CREDAI Bengaluru still welcomed the move “as it addresses the interests of buyers.”

GST Impact

Replying to quires on GST impact on the real estate projects, Puravankara said, “There has been no raise in costs but will actually bring down the prices in the months to come. But the actual price cut will be known only after 3-4 months and not immediately,

CREDAI Members

In Bengaluru, the real estate sector amounts to 60-65 percent and will grow to 85 percent in the years to come. CREDAI as a organization has 257 members in Bengaluru and all of them belong to the organized sector, concludes Sastri.

Google, Facebook, What’sApp in Talks with NPCI for UPI Enabled Payment on their Platform

Technology giants such as Google Inc, Facebook Inc and WhatsApp among others have approached the National Payments Corporation of India (NPCI) to grant licence for Unified Payments Interface (UPI)-enabled payment on their platforms.

The proposed move is likely to significantly boost digital payments in the country, a top NPCI official said. “We have sought approval for the social media platforms to venture into the payments space. So that, if these organisations come to us for approval, we will have to approve it, and not go to RBI. Then rolling it out is our responsiblity,” NPCI MD and CEO, A P Hota said on Monday.

Google is in advanced talks with NPCI to integrate its digital payment service, Android Pay, with UPI. The company has completed its discussions with NPCI, which has in turn requested the Reserve Bank of India to consider Google’s application, Hota said.

Once the apex bank grants the in-principle liscense to Google, its app would have to go through the security check by the NPCI, before rolling out. The in-principle licence is expected to come out in one or two months from the Reserve Bank. “The talks are also going on with WhatsApp and Facebook,” he added.

He also said that given the reach of these players, they will aid the government’s target on digital payments, adding “However we don’t have to be dependent on them.”

He also declined any kind of tie up between these technology giants and NPCI for enhancing latter’s reach. While NPCI’s payment interface Unified Payments Interface has 25 million downloads in India, number of Facebook users stand in excess of 213 million in India, with another 200 million WhatsApp users across India.

Google announced the launch of Android Pay in March 2015. The same month, Facebook announced that the company will enable peer-to-peer payments through Facebook Messenger.

India Post Unveils 'Say No To Tobacco' Special Postal Covers in Bengaluru

A special postal cover that highlights the ill effects of tobacco was released in the state on Monday.The postal cover, which costs Rs 25, along with a stamp, intends to create awareness among members of the public on the hazards caused by the use of tobacco.

“We usually forget the importance of the day as soon as it isover. But a postal cover will remain as a collectible. The picture on the envelope will convey the message to the public and spread awareness among them,” said Rajendra Kumar, postmaster general of south Karnataka region, after releasing the stamp.

He said that there is a high economic cost due to tobacco’s ill effects and it should be eliminated. He added that the envelope was thoughtfully designed to spread awareness.

The release of the new postal cover was in the backdrop of ‘World No Tobacco Day’ on May 31.According to Global Adults Tobacco Survey (GATS) 2009-2010, 28.2% adults in Karnataka use tobacco, out of which 39.8% are males and 16.3% are females. The exposure to second hand smoke is 42% at work places and 37.2% in public places in the state

Students Will Have D Mat Account for their Educational Certificates Shortly

National Academic Depository (NAD)is an initiative undertaken by MHRD for digital issuance, storage and access of all academic certificates issued by academic institutions in the country, will be implemented through NSDL Database Management Limited (NDML), a wholly owned subsidiary of NSDL which is the largest depository of India.

The National Academic Depository was launched by President of India, Pranab Mukherjee in the presence of Minister of Human Resource Development, Prakash Javadekar and Minister of State for Human Resource Development (Higher Education), Dr MahendraNath Pandey. The Ministry of Human Resources Development (MHRD), Government of India, University Grants Commission (UGC) and All India Council for Technical Education (AICTE) during  “National Conclave on Digital Initiatives in Higher Education”at an impressive ceremony at Vigyan Bhawan in New Delhi.

Vice Chancellors of all the Universities in India, Directors / Heads of IITs, IIMs and other Academic Institutions participated in the conclave.

Under NAD every student will have a digital account to which all certificates issued by various academic institutions will be credited in digital format. Students will be identified uniquely by their Aadhaar number. NAD will eliminate paper, mitigate the risk of fake and forged certificates and enable online, electronic authentication of certificates by employers and higher education institutions.

Speaking on the occasion,  G V Nageswara Rao, MD & CEO, NSDL said,“NDML is proud to be part of NAD initiative and NDML looks forward to bringing to educational sector the same benefits that NSDL as a securities depository brought to capital markets.” Central Board of Secondary Education (CBSE) became the first academic institution to join NAD through NDML. CBSE certificates for the academic year 2016-17 have been made available in NAD.

At this event some of the most awaited student-centric digital initiatives for higher education were dedicated to the service of the nation. Besides the National Academic Depository, Hon’ble President also launched “SWAYAM”, a large portal of Massive Open Online Courses for Indian studentsand “SWAYAM Prabha”,a bouquet of 32 online DTH channels dedicated to higher educational content.

EdgeVerve to Offer the Finacle Suite of Solutions on Amazon Web Services

EdgeVerve Systems, a wholly-owned subsidiary of Infosys has announced the availability of its Finacle suite of solutions on Amazon Web Services (AWS). With this, banks around the world can securely leverage Finacle’s industry-leading solution suite, along with other enterprise-class applications hosted on the AWS Cloud.

This new offering allows banks to either use the entire suite of Finacle solutions or choose to implement specific Finacle offerings. Such select implementations will also help banks swiftly move to a truly digital experience, ensuring their customers have world class banking experiences across devices and platforms.

Highlights:

·  Finacle’s offering will enable banks of all sizes, across the globe, to run enterprise-class banking solutions such as Finacle Core, Mobile, Online Banking and Finacle Omnichannel Hub on the AWS Cloud

·  The flexible pay-per-use model with Finacle on AWS will allow banks to choose provisioning depending on their business demands. It will not only reduce infrastructure and application management costs for Finacle clients, but also help them service their customers with a real-time services on the AWS Cloud. In addition, a broad range of technology support from AWS will help banks move away from proprietary and constrained legacy environments

·         Banks can run Finacle’s suite of solutions on AWS in development, test and production. This offering from Infosys will accelerate the process of cloud adoption

·         The service ensures that banks always have the latest Finacle capabilities available on-demand to keep pace with changing consumer expectations

·         With the burden of infrastructure costs, deployment time and efforts significantly reduced, banks  will now be able take new innovations to market, faster and reliably

·         AWS Cloud compliance will enable customers to understand the robust controls in place at AWS to maintain security and data protection in the cloud. AWS services tie together governance-focused, audit-friendly service features, with applicable security compliance regulations and audit standards, AWS compliance enablers, built on traditional programs, will drive customers to operate in an AWS security controlled environment

Sanat Rao, Chief Business Officer and Global Head, Infosys Finacle, “At Infosys Finacle, we believe that cloud adoption can dramatically change the way banks operate. In the era of constant change, cloud solutions provide the much needed agility for banks to innovate continuously, both within the enterprise as well as with external ecosystem. We believe that along with AWS, we can help banks gradually adopt cloud to cope with ever changing customer needs, operational pressures and volatile business demands.”

Frank Fallon, Vice President, Global Financial Services, Amazon Web Services, Inc. ““We understand that banks are dealing with ever increasing customer expectations, expanding regulatory oversight, increased competition, heightened threats to information security, and scarce resources. At AWS, we help banks innovate faster by combining startup agility with enterprise experience and resources, eliminating costly technical debt and reducing risk. Together with Finacle, banks are accelerating their adoption of AWS for critical workloads, and deriving the core benefits of increased security, agility, and scalability, while focusing on what really matters – building great applications for their customers, not in investing in costly and complex infrastructure.”