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WHY CHINA IS WARY OF ‘INS VIKRANT’

Commissioning of the largest ship India had ever built in its maritime history, is a clear message to China and Pakistan that its Navy is all prepared to respond to their nefarious designs on high seas

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With the induction of its first indigenous aircraft carrier ‘INS Vikrant’, India is set to contain China’s iniquitous intentions to control the Indo-Pacific region. As preparations for India’s third aircraft carrier have already been set in motion, it is a clear message to China and Pakistan of their nefarious designs, in keeping with the theme of being a ‘Combat-ready, Credible and Cohesive force’ in the Indian Ocean Region (IOR).

A CNN report claimed INS Vikrant has put India into “an elite league of the world’s naval powers,” and an AFP article hailed it as “a milestone in government efforts to counter China’s growing military assertiveness in the region.”

The aircraft carrier is a force multiplier that will be a ‘game-changer’ in the current regional maritime security dynamics as the IAC will boost India’s maritime defence capabilities with the in-service carrier INS Vikramaditya.

It is well-known that China, which has been demonstrating an increasingly aggressive posture along the land boundary with India, is also attempting to get a foothold in the Indian Ocean, which is increasingly becoming a stage of rivalry between India and China.

Towards this, China has already acquired a naval outpost in Djibouti and invested in developing the Gwadar port in Pakistan. The Chinese navy will use these basing facilities to support its ships.

Recently, China also launched its third aircraft carrier ‘Fujian’ and is rapidly building two more aircraft carriers, including its fleet of destroyers and frigates. The vessel – with a flight deck that is approximately 320m long and almost 80m wide according to satellite imagery estimates – is referred to as a Type 003 carrier.

India and China were recently at odds over the docking of a Chinese ‘’spy ship” in Sri Lanka’s Hambantota port for a seven-day replenishment, which India had vehemently opposed due to security concerns.

Sri Lanka initially requested a delay in the ship’s arrival over India’s objections, but eventually, it got approved following “extensive consultations at a high level.” These developments are a cause for concern in the Indian security establishment.

While India has become a preferred security provider for its littoral countries, it cannot be the case with China for the nations in the Southeast Asia region.

China’s contentions in the IOR are to protect its sea lines of communication through the Straits of Malacca and the Hormuz Straits. The Hormuz Straits account for 40 per cent of China’s oil imports, and the Straits of Malacca accounts for 82 per cent of China’s oil imports, popularly known as the ‘Hormuz-Malacca Dilemma’.

This is the reason why China is attempting to encircling India by building a string of naval bases to surround India’s neighbours and various neighbouring island states.

The String of Pearls is a network of Chinese military and commercial bases from the Chinese mainland to Port Sudan in the Horn of Africa. This network passes through crucial maritime choke points that include the Strait of Malacca, Strait of Hormuz, Strait of Mandeb, Gwadar port in Pakistan and Hambantota port in Sri Lanka.

China has long wanted to control the Indo-Pacific region, which is essential for its security and commercial shipping. The String of Pearls is one such initiative by China in this direction. But with the induction of INS Vikrant, India is now well poised to contain China’s String of Pearls.

Notably, INS Vikrant is “the largest ship ever built in the maritime history of India” and can operate a fleet of 30 aircraft, including fighter jets and multi-role helicopters. It is designed with a high degree of automation for machinery operations, ship navigation and survivability.

Designed by the Indian Navy’s in-house Warship Design Bureau (WDB) and built by Cochin Shipyard Limited, a public sector shipyard under the Ministry of Ports, Shipping and Waterways, INS Vikrant has been built with state-of-the-art automation features.

With the commissioning of ‘Vikrant’, India has joined a select group of nations such as the US, the UK, Russia, China and France with the niche capability to design and build an aircraft carrier indigenously.

As Prime Minister Narendra Modi said, “INS Vikrant is not just a warship. This is a testament to the hard work, talent, influence and commitment of 21st century of India.” He added that the aircraft carrier has filled the nation with “new confidence” and declared India had taken one more step toward becoming a developed nation.

Defence Minister Rajnath Singh said the commissioning of Vikrant demonstrates that India is “fully capable of meeting the collective security needs of the region” and that India’s navy is ready to respond to any crisis.

INS Vikrant, built at a cost of around Rs 20,000 crore, successfully completed its fourth and final phase of the sea trials last month. At a top speed of about 28 knots and a cruising speed of 18 knots with an endurance of 7,500 nautical miles, the IAC can readily be deployed to an area of potential threat.

The 262-meter-long and 62-meter-tall aircraft carrier can carry 1,600 sailors and displaces about 43,000 tonne of water will bolster its navy capabilities amid growing concerns over the Chinese regime’s assertiveness in the region.

The ship has over 2,300 compartments, designed for a crew of around 1,700 people, including specialised cabins to accommodate women officers. It has a height of 59 metres. Its keel was laid in 2009.

The commissioning of India’s first indigenous aircraft carrier is a momentous occasion during the ‘Amrit Kaal’ of India’s 75 years of independence and signifies the country’s confidence and prowess.

This indigenous aircraft carrier is proof of the country’s technical acumen and engineering skills. This demonstration of India’s self-sufficiency to produce an aircraft carrier warship will reinforce the country’s defence indigenization programs and ‘Make in India’ campaign.

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Crypto industry finds middle ground with regulators

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Cryptocurrencies have sparked polarizing views, with some claiming they will revolutionize finance while others warn
of fraudulent schemes and risks. Amidst this debate, a middle-of-the-road regulatory consensus is emerging, envisioning a future where crypto operates within traditional financial regulatory systems.
The International Monetary Fund (IMF) recently proposed four principles for crypto regulation: defending against the substitution of sovereign currencies, not granting crypto assets official currency status, managin capital flows associated with crypto, and ensuring unam biguous tax treatment.
The first principle, defending against currency substitution, encourages healthy competition and innovation in the financial sector, prompting traditional institutions to improve their services to compete with crypto.
The second principle, protecting national sovereignty, aims to safeguard government revenues generated
through seigniorage. However, it can hinder innovation and competition if it protects inefficient monopolies.
The third and fourth principles involve managing capital flows and tax treatment, respectively. These principles can be problematic, leading to financial repression and hindering innovation in the crypto ecosystem.
While the regulatory consensus shows positive interIMF PARAMETERS.

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Generative AI gives SurveySparrow’s chat surveys a new edge

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SurveySparrow, founded and led by Shihab Muhammed, is revolutionizing the online
survey software landscape with its innovative chat survey software. The platform, launched in 2018, aims to capture the conversational nature of surveys, offering a highly engaging experience for users through the utilization of advanced technologies like big data and AI.
The idea behind SurveySparrow came about due to the abysmally low completion rates of traditional form-filling in online surveys, which prompted the need for a more interactive and engaging survey experience. The platform’s omni-channel experience manage-
ment approach has resonated well with customers, resulting in over 200,000 clients across 149 coun- tries, including renowned brands such as Meesho, Godrej, Paysafe, Exin, and Grant Thornton.
In a recent interview, Shihab Muhammed shared some insights
into the growth and milestones of SurveySparrow. The platform’s de- fining moment was achieving com- pletion rates of over 90% through engaging conversational UI, which far surpassed the average comple- tion rate of 15% for traditional form-based surveys. Within just
50 days of its launch, SurveySpar- row gained its first 1,000 custom- ers, demonstrating strong customer appreciation and satisfaction.
Over the years, SurveySpar- row has experienced remarkable growth, with a 300% increase in 2021 and a doubling of revenue in 2022. The company has successful- ly raised seed capital of USD 1.4 mil- lion from prime venture partners and secured an additional USD 3 million in a bridge round from a family office. The platform’s digi- tal strategy plays a crucial role in achieving its targets and operation- al requirements. SurveySparrow’s multi-layered digital infrastructure, which includes storage, cache, ap- plication, queues, background jobs, and serverless components, enables high-quality service delivery, in-
novation, and quick adaptation to customer needs. New technologies like big data, AI, and ML have been integral to SurveySparrow’s suc- cess. The platform leverages AI- generated surveys and generative AI to enhance the user experience in creating, sharing, collecting, and analyzing data. The integration of cloud technology, specifically Amazon Web Services (AWS), has further strengthened SurveySpar- row’s capabilities. Running on AWS has provided benefits such as high availability, scalability, and agility, freeing the company from man- aging complex infrastructure and allowing it to focus on product im- provement, customer service, and business growth.
The pay-as-you-use model of AWS has reduced upfront costs and pro-
vided flexibility, while its security measures have instilled confidence in data and system protection. With a team of over 200 employ- ees and a growing global clientele, SurveySparrow continues to pave the way for a more engaging and user-friendly approach to online surveys. Finally, SurveySparrow’s innovative chat survey software has redefined the survey experience, at- tracting a large customer base and achieving high completion rates. Its growth trajectory has been impres- sive, backed by advanced technolo- gies, strategic partnerships, and a robust digital infrastructure. By leveraging cloud technology and embracing AI-driven innovations, SurveySparrow is well-positioned for continued success and further expansion in the global market.

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‘India’s economic narrative brighter, takes global lead’

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Industrialist M Mangalam Birla, in his address to Ul- traTech Cement sharehold- ers in the company’s latest annual report, highlighted India’s positive economic narrative and its potential for growth. He emphasized the government-led push to- wards infrastructure invest- ments and pragmatic policies like the production-linked incentives scheme, which have led to a surge in private sector capital expenditure. This surge in private invest- ment is expected to trigger a multi-year economic boom, providing valuable support to economic growth despite softening global demand.
Birla praised India’s active role in the global economic evolution, positioning the country as a charismatic lead rather than a mere spectator. He noted that as global cor- porations adopt a ‘China plus one’ strategy and explore countries across Asia, India is well-positioned to benefit from this trend. The coun- try’s growth momentum is further strengthened by the dynamism of its tech-based ‘new economy’ enterprises and the expanding digitiza-tion across various sectors. He pointed out that India’s demographic advantage plays a crucial role in its in- dustrial ecosystem. With the largest and youngest work- ing-age population globally, India’s population now sur- passes China’s. Birla high- lighted the importance of this demographic dividend, citing lessons learned from other economies over the past few decades.
While discussing the global economy, Birla noted that it is gradually recovering from the pandemic-induced shock. However, challenges persist, including the ongo- ing conflict in Ukraine, geo- economic fragmentation, soaring interest rates, and the risks of a banking contagion. The International Monetary Fund (IMF) predicts a dip in global economic growth from 3.4% in 2022 to 2.8% in 2023, with developed countries experiencing a more pro-
nounced deceleration. On a positive note, China’s economy is moving towards normalization following the lifting of Covid-related restrictions, and both China and India are ex- pected to significantly contribute to global economic growth in 2023, providing a much-needed stimulus.
Regarding the performance of UltraTech Cement, Birla highlighted that the company achieved a milestone by sell- ing 100 million tonnes in FY23 and recorded net revenues of Rs 63,240 crore (USD 7.9 billion). The company has un- dertaken an aggressive capacity expansion plan, including greenfield and brownfield projects in high-growth geogra-
phies across India. After completing all ongoing projects, UltraTech Cement’s capacity is expected to reach over 160 million tonnes per annum, solidifying its position as the third-largest cement company globally, outside of China, and the unrivalled leader in India.
In conclusion, Kumar Mangalam Birla’s address to UltraT- ech Cement shareholders showcases the positive economic narrative of India, fuelled by government-led infrastructure investments and pragmatic policies. The surge in private sector capital expenditure is expected to drive economic growth in the face of global challenges. India’s demographic advantage and growing tech-based sectors further strength- en its growth momentum. The country’s active role in the global economic evolution positions it well to benefit from shifting global dynamics. As UltraTech Cement continues its expansion, it aims to consolidate its position as a leading cement company in India and on the global stage.

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India rejects china’s BYD $1 billion ev plant proposal

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Great Wall Motor Co.’s attempt to acquire a mothballed General Motors Co. plant was also thwarted due to a lack of approval

The Indian govern- ment has dismissed a $1 billion proposal from Chinese carmaker BYD Co. and Hyderabad-based Megha Engineering and In- frastructures Ltd. (MEIL) to establish an electric ve- hicle (EV) manufacturing plant in Telangana. The decision, based on national security concerns, comes amid strained relations be- tween India and China due to deadly clashes along their disputed border.Sources close to the matter revealed that the rejection was due to apprehensions about the use of Chinese homegrown technology in the proposed EV plant. While foreign direct invest- ment in India’s automobile sector typically does not re- quire approval, investments from countries sharing a Km birla’s view border with India demand political and security clear- ance from the ministries of external and home affairs. BYD and MEIL’s joint venture aimed to capture 40% of India’s domestic EV market by 2030. However,
the government’s rejection deals a significant blow to their ambitious plans. BYD had been operating in India since 2007 and had plans to sell 15,000 electric vehicles in the country this year.
This move reflects India’s cautious approach towards Chinese investments, as it aims to limit economic ties with its neighbour following the deadly border clashes. In the past, Great Wall Mo- tor Co.’s attempt to acquire a mothballed General Motors Co. plant was also thwarted due to a lack of approval.
While BYD declined to comment on the matter, representatives from MEIL did not respond to inquiries
regarding the rejection. The Finance Ministry, Heavy Industries Ministry, and Ministry of Home Affairs, which were assessing BYD’s proposal and vetting incom- ing investments, also did not offer any comments.
Meanwhile, other foreign investments, such as Tesla Inc.’s potential significant investment in India, seem unaffected. After meeting with Indian Prime Minister Narendra Modi, Elon Musk expressed interest in mak- ing substantial investments in the country. BYD’s ambi- tious investment proposal aimed to bolster its presence in India’s EV market, but the rejection raises uncertainties about the company’s future plans in the region. The joint venture with MEIL would have played a crucial role in achieving their market share objectives.
The Indian government’s cautious stance towards Chinese investments has also affected other ventures. For instance, SAIC Motor Corp.’s local unit, MG Motor India Pvt, faced scrutiny last year over alleged financial irregularities. As a result, MG Motor announced plans to dilute its ownership and sought majority ownership by an Indian firm within two to four years.
Under the Foreign Direct Investment (FDI) rules, proposals involving investments from countries sharing a land border with India must obtain government approval. These coun- tries include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
Despite the rejection, India’s FDI equity from China has amounted to USD 2.5 billion from April 2000 to March 2023, indicating the significance of Chinese investments in the Indian market.
The bottom-line is, the Indian government’s rejection of BYD and MEIL’s joint venture proposal to build a $1 billion EV manufacturing plant reflects concerns over national security and the use of Chinese technology. As the two na- tions’ relations remain strained, India continues to exercise caution in approving investments from countries sharing a border with it. The rejection poses challenges for BYD’s
ambitions in India’s EV market, while other foreign invest- ments, such as Tesla’s potential venture, remain unaffected.

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Kia offers new Seltos at starting price of Rs 10.89 lakh

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Leading SUV manufacturer Kia India will market the new Seltos, unveiled earlier this month on 4 July, at a special introductory price of INR 10,89,900 (ex-showroom) pan-India. One of the most-anticipated SUVs, the new Seltos comes in 18 variants with top of the trim with ADAS– GT-line and X Line in both diesel and petrol engines and will cost INR 19,79,900 and INR 19,99,900, (ex-showroom) pan-India, respectively. The new Seltos has received an overwhelming response, recording the segment’s highest day 1 booking of 13,424 units.

Customers can book their variant of choice through the Kia India official website and any of the authorized dealerships of Kia India by paying an initial booking amount of INR 25,000.
The launch of the new Seltos is in line with Kia’s “commitment to setting industry benchmarks with innovative offerings at competitive prices which has fuelled the growth of segments in the past,” says Tae-Jin Park, Managing Director and CEO, Kia India. Park expects the new Seltos to continue this trend with its advanced ADAS level 2, top-notch safety features and innovative technology to appeal to the discerning new-age customers. “Coupled with a wide range of variant choices, aggressive pricing, and a seamless ownership experience, the new Seltos is not only the smartest driving experience but also the best buy in the market,” assures Park. “With the launch of new Seltos, Hardeep Singh Brar – National Head, Sales & Marketing, is aiming for the company to be one of the top mid-SUV segment leaders again and hope for a strong sales surge.
The new Seltos leads the mid-SUV space with segment-leading features such as dual screen panoramic display with 26.04 cm fully digital cluster, 26.03 cm HD touchscreen navigation, dual zone fully automatic air conditioner, glossy black alloy wheels, 32 safety features, including 15 robust safety features (standard across the range) and 17 ADAS level 2 autonomous features. It also has much-awaited features like the dual pane panoramic sunroof, electric parking brake and the efficient smartstream G1.5 T-GDi petrol engine, which generates 160PS of power and 253 Nm of torque.

“Kia India is growing faster than the industry and we have kept our performance steady with healthy growth,´ says Brar. This is despite the realignment of manufacturing process to accommodate the development of the new Seltos. Kia India recorded domestic sales of 1,36,108 units, registering almost 12 per cent Y-o-Y growth in first half of 2023. The Sonet emerged as the best-selling Kia product, with sales of 53,491 units, followed closely by the Kia Carens at 40,771 units. In June 2023, the company sold 19,391 in the domestic market. Combining June figures with exports, the dispatches stood at 28,091 units.

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India-Japan Deeptech Innovation & Clean Energy Seminar

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New Delhi [India], July 24: JETRO (Japan External Trade Organization) and NEDO (New Energy and Industrial Technology Development Organization) Japan organized a seminar on India-Japan Deeptech Innovation & Clean Energy on 20th July 2023 at ITC Maurya, Diplomatic Enclave, New Delhi. The seminar was co-hosted by FICCI and TERI.

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