India Advocacy

In a significant funding round, Direct-to-Consumer (D2C) beauty and wellness startup Nat Habit has raised $10.2 million in a series B funding, with Bertelsmann India Investments (BII) leading the investment. The funding round also included participation from existing investor Fireside Ventures, along with Amazon India Fund, Mirabilis Investment Trust, and Sharrp Ventures.

Exit Strategy for Early Investors: A noteworthy aspect of the funding is the allocation of $2 million to facilitate an exit for early-stage investors, promising substantial returns of nearly 4.5 to 5 times their initial investment over a four-year period, according to a statement from Nat Habit.

Strategic Utilization of Capital: Nat Habit intends to utilize the capital for various purposes, including research and development, product development, brand building, offline expansion, and recruitment. The startup aims to strengthen its position in the market and enhance its offerings.

Company Background and Vision: Founded in 2019 by Swagatika Das and Gaurav Agarwal, Nat Habit has garnered a significant customer base, serving approximately 14 lakh customers and shipping 15,000 units per day. The startup emphasizes natural and ayurvedic care, positioning it as a lifestyle choice for consumers.

Proprietary Formulations and Expansion Plans: Nat Habit distinguishes itself by creating proprietary formulations using fresh ingredients such as raw milk, fruits, and herbs. With the recent funding, the company plans to double down on building a stronger community and aims to become the preferred brand for daily personal care needs in India.

Market Outlook: The Indian beauty and personal care market are poised for substantial growth, with Nat Habit aiming to capitalize on this trend. Over the next 24 months, the company plans to expand its product portfolio and venture into offline channels to reach a broader audience.

The beauty and personal care market in India is projected to experience a compound annual growth rate of 10%, reaching $30 million by 2027. Nat Habit’s unique approach to fresh products and natural ingredients has garnered customer love and strong retention, making it a noteworthy player in the evolving landscape.

Limited Liability Partnership (LLP) in India offers a streamlined and cost-effective business structure, providing partners with limited liability protection. Here’s a step-by-step guide on how to register an LLP online:

1. Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN):

• Acquire a DSC from licensed Certifying Authorities, serving as a legally recognized digital signature.
• Obtain a unique DIN for individuals appointed as directors in the LLP.

2. Reserve Unique Name (LP-RUN):

• Utilize the free name search facility on the Ministry of Corporate Affairs (MCA) portal.
• Enter up to six proposed names for approval by the Registrar, ensuring uniqueness and non-similarity to existing entities.

3. Fill and Submit Form 1:

• Click on the ‘E-form’ link and select Form 1 for name reservation.
• Provide details of at least two designated partners of the proposed LLP.
• Attach DSC and submit the form along with the applicable fee.

4. Incorporation Document and Statement (Form 2):

• Once the name is approved, log in to the MCA portal.
• Navigate to MCA Services > E-Filing > LLP Forms Download > Incorporation Document and Statement (Form 2).
• Fill the form and pay the required fee based on the total monetary value of partners’ contributions.

5. Digital Signatures and Submission:

• Digitally sign the form using the designated partner’s permanent DPIN.
• Additionally, the form must be digitally signed by an advocate, company secretary, chartered accountant, or cost accountant.

6. Registrar’s Approval and Certificate of Incorporation:

• The registrar will analyze the submitted form.
• If found satisfactory, the LLP will be registered within 14 days.
• A Certificate of Incorporation will be issued, marking the official establishment of the LLP.

Note: Complying with these steps ensures a smooth online LLP registration process, providing entrepreneurs with the benefits of limited liability and simplified annual compliances.

Choosing the right term insurance plan can be daunting, but careful consideration of key factors ensures clarity and addresses common concerns. To secure financial stability during health crises, evaluating your requirements and understanding policy nuances is paramount. Here are seven crucial tips to guide you in selecting the most fitting term insurance plan.

1. Evaluate Financial Commitments: Initiate the process by assessing your financial commitments, including loans, family expenses, and future goals. Determine a coverage amount that adequately supports your dependents, factoring in inflation and potential liabilities.

2. Thorough Policy Document Examination: Before finalizing a term insurance plan, meticulously read the policy document. Understand terms, conditions, and exclusions, paying particular attention to claim settlement procedures, premium payment frequency, and the policy’s tenure.

3. Wisdom from Adhil Shetty, CEO, Bankbazaar.com: Adhil Shetty emphasizes paying attention to crucial details such as claim settlement procedures, premium payment frequency, and potential hidden clauses. Clarifying doubts with the insurer ensures transparency for informed decision-making.

4. Choosing the Right Insurer: Select a reputable and financially stable insurer. Research various insurance companies, considering their claim settlement ratios, customer reviews, and overall market reputation. Opt for an insurer known for prompt and fair claim settlements and quality customer service.

5. Compare Premiums and Benefits: While affordability is vital, don’t solely focus on the lowest premium. Compare premium rates and benefits offered by different insurers, ensuring a balance between affordability and comprehensive coverage. Explore additional features like riders or add-ons.

6. Honesty in Information Disclosure: Provide accurate and complete information during the application process. Misinformation or non-disclosure can lead to claim rejection. Disclose health conditions, habits, and relevant details truthfully to ensure hassle-free claim settlements.

7. Consider Add-Ons or Riders: Explore additional riders or add-ons available with term insurance policies. Critical illness cover, accidental death benefit, or premium waiver for disability can enhance coverage. Evaluate cost-effectiveness before opting for additional riders.

8. Regular Policy Reviews: Life circumstances can change unexpectedly. Periodically review your term insurance policy to align with current needs. Major life events such as marriage, childbirth, or career advancements may necessitate adjustments in coverage. Stay updated with policy modifications and changes.

By adhering to these seven considerations, you can confidently navigate the term insurance landscape, making decisions that effectively safeguard your family’s financial future.

The Ministry of Micro, Small, and Medium Enterprises (MSME) has reported a remarkable increase in the share of women-owned MSMEs registered on the government’s Udyam portal. As of December 4, 2023, out of the total 3.16 crore MSMEs registered since the portal’s launch on July 1, 2020, an impressive 37.13% (1.17 crore units) are led by women entrepreneurs.

Rapid Growth from 19.43% to 37.13%

This surge represents a significant leap from the 19.43% share reported as of August 1, 2023, indicating a rapid increase in women’s participation in the MSME sector. Minister of State in the MSME Ministry, Bhanu Pratap Singh Verma, shared these statistics in a written reply to the Rajya Sabha, highlighting the positive trend.

Government Initiatives and Schemes

Various government initiatives and schemes have played a crucial role in fostering the growth of women-led MSMEs. Schemes such as the Prime Minister’s Employment Generation Programme (PMEGP), Mahila Coir Yojana, and increased guarantee coverage of credit to 85% for women entrepreneurs under CGTMSE have contributed to this encouraging shift.

Amit Shah’s Endorsement and Empowerment Metrics

Home Minister Amit Shah, acknowledging the government’s commitment to women’s empowerment, highlighted key achievements. These include over 27.7 crore loans issued to women entrepreneurs under the Mudra scheme, more than Rs 33,000 crore loans sanctioned under the StandUp India scheme, and women-owned MSMEs delivering orders worth Rs 15,922 crore through the government public procurement marketplace (GeM).

In summary, the data reflects a positive trajectory for women in the MSME sector, with government support and focused schemes propelling their increased participation and success.

India’s gross GST collections for October 2023 stood at Rs 1.72 Lakh crore, marking a 13.4% increase from the previous year. Six years since its introduction, the Goods and Services Tax (GST) system has contributed to enhanced tax buoyancy, streamlined logistics, improved tax administration, and increased formalization of the economy. The sustained growth in tax collections reflects economic resilience amid global macroeconomic and geopolitical uncertainties.

Positive Fiscal Position

The fiscal year’s gross GST collections, totaling Rs 1.66 Lakh crore, exhibit an 11.4% growth compared to the same period last year. While the growth rate has moderated from the post-pandemic recovery years, the overall Compound Annual Growth Rate (CAGR) of ~11% since FY19 surpasses nominal GDP growth (~9.5%). This trend underscores the increasing formalization of the economy.

GST’s Evolution: A Unifying Force

The implementation of GST aimed to realize the vision of “One Nation, One Tax,” unifying and centralizing taxes on goods and services. The transformation has led to increased transparency, formalization, and a reduction in the compliance burden on taxpayers. The GST Council’s unique federal structure and the use of technology, including Data analytics, Artificial Intelligence, and RFID Tags, have played pivotal roles in achieving these objectives.

Effective Measures Against Tax Evasion

Efficient handling of fake GST invoices has contributed to revenue growth. Measures such as early identification of suspected entities, anti-evasion drives, and investigations have been instrumental. The GST Council’s continuous assessment and correction of inverted structures and tax loopholes, along with standardized rates, have encouraged businesses to join the tax net.

Structural Resilience Amid Global Headwinds

Despite global challenges, India’s economy has demonstrated remarkable resilience, reflected in high-frequency indicators and robust GST collections. Ongoing efforts to address challenges in the system, coupled with structural reforms, indicate a collective commitment to the economy’s structural resilience.

The ‘Discard ITR’ feature has emerged as a valuable tool for taxpayers seeking to rectify errors in their filed income tax returns (ITRs). This feature serves as a delete option for ITRs that have been submitted but are still pending verification. However, it comes with certain caveats and considerations that taxpayers must be mindful of.

When to Discard: Unveiling the Process

The ‘discard’ option is particularly beneficial for individuals who discover mistakes in their filed ITRs after submission. This feature allows them to delete the incorrect ITR and submit a new one with the necessary corrections. It’s important to note that the discard option is exclusively available for unverified ITRs. Once the e-verification process is complete, the discard button becomes inaccessible, requiring any corrections to be addressed through a revised return.

Important Considerations: Timing and Obligations

While the discard ITR feature provides flexibility, taxpayers should be aware that the filing of a new return after discarding is obligatory. The new filing date must adhere to the due date specified in income tax provisions to avoid potential penalties and interests associated with belated returns.

Irreversible Action: Exercise Caution

Choosing to discard an ITR is an irreversible action. Taxpayers must exercise caution and carefully evaluate the need for discarding, as a discarded ITR is considered as not filed at all. The income tax department expects the submission of a new ITR in place of the discarded one.

In summary, the ‘Discard ITR’ feature offers a solution for correcting errors in filed returns, but users should approach it with caution, understanding the implications and obligations associated with this decision.

In a recent “India’s Investment Readiness” survey conducted by Policybazaar.com across 350 cities, 63% of respondents expressed a clear preference for the Old Tax Regime over the New Tax Regime. The survey, targeting individuals within the taxable income bracket, aimed to understand the factors influencing Indians’ choice of tax regimes, especially with the New Tax Regime becoming the default option.

Factors Driving Preference

The findings reveal that tax-saving benefits and a sense of security offered by long-term savings instruments are key drivers behind the continued popularity of the Old Tax Regime. PPF (Public Provident Fund) and life insurance emerged as the most favored tax-saving instruments, chosen by 39% and 34% of respondents, respectively.

Demographic Shifts in Financial Prudence

The survey suggests a positive trend of financial prudence across India, with 71% of respondents making their tax regime choice based on meticulous calculations. Interestingly, women exhibited a slightly higher proactive approach than men, with 74% of women calculating tax liability under both regimes. Across age groups, a noteworthy shift is observed, with a majority in the 18-50 age group opting for the Old Regime, signaling an openness towards long-term investments.

Regional Dynamics and Preferred Instruments

Demographic sections traditionally limited in financial knowledge are showing recovery, with Tier 1, 2, and 3 respondents actively opting for the Old Regime. Southern India displayed the highest investment readiness at 65%, reflecting a collective shift in financial behavior.

Insurance and PPF: Shaping the Tax-Saving Landscape

The survey highlights a shift towards diversified investments, with PPF and life insurance emerging as the top tax-saving tools. This reflects an evolving financial landscape, indicating heightened awareness, prudent decision-making, and a preference for long-term financial stability among Indian investors.

These insights collectively paint a picture of a savings-centric mentality, where individuals are not only considering immediate tax benefits but also looking towards long-term gains from retirement-linked instruments, provident funds, pensions, and insurance.

In response to a query in the Lok Sabha, Minister of State in the MSME Ministry, Bhanu Pratap Singh Verma, acknowledged the absence of a dedicated study on the advantages and disadvantages of Foreign Direct Investment (FDI) in the Micro, Small, and Medium Enterprises (MSME) sector. Despite an investor-friendly policy fostering FDI in various sectors, including MSMEs, there’s a dearth of specific analysis concerning the competitiveness and viability of such investments.

Government’s FDI Promotion: Verma highlighted the government’s initiative to boost FDI through a favorable policy allowing 100% FDI under the automatic route in most sectors, barring strategically vital ones. This, however, is contingent upon adherence to sectoral laws, regulations, security conditions, and local laws.

FDI Trends and Concerns: Official data reveals a 24% decline in FDI equity inflows from $26.91 billion to $20.48 billion during April-September 2023. The overall FDI flows for FY23 also decreased by 16.3%, raising concerns about the attractiveness of the Indian market for foreign investors.

RBI Working Paper Insights: A working paper by the Reserve Bank of India earlier in the year delved into the impact of FDI on profitability. Notably, it found that FDI tends to have a more substantial positive effect on the profitability of larger companies compared to their smaller counterparts. The age and size of a company emerged as crucial factors, with older and smaller companies exhibiting lower profitability in the context of FDI.

Conclusion: The revelation of a lack of sector-specific analysis raises questions about the nuanced effects of FDI on MSMEs. As the government continues to advocate for foreign investment, a targeted examination of its impact on the MSME sector becomes imperative for informed policymaking and sustainable economic growth.

In 2023, B2B marketing has undergone a significant transformation, challenging the notion of a rigid and serious approach. B2B consumers, essentially individuals in various industries, are now recognized as people who share common interests with B2C consumers. Brands like Hootsuite have embraced a more human and fun approach, using memes and relatable content to engage with their target audience, especially social media managers.

LinkedIn’s Resurgence: The Power of Professional Networking

LinkedIn has witnessed a resurgence, becoming a prominent platform for professionals and brands alike. Brands such as Alibaba utilize LinkedIn to share their experiences and showcase their corporate culture, establishing a more personal connection with their audience.

Webinars Reimagined: Niche Engagement in the Digital Era

Webinars, while not a new concept, have evolved into a powerful tool for B2B brands. COVID-19 accelerated the realization of their potential, leading to the creation of niche webinars that focus on upskilling, information awareness, and myth-busting, offering valuable content to a targeted audience.

The Rise of Personal Branding: Beyond Elon Musk

Personal branding has gained increased awareness, with individuals like Kunal Shah becoming voices for their brands. Building goodwill and trust on a personal level has become integral to B2B marketing, showcasing the human side of business leaders.

ABM Evolution: Personalized Strategies for Client Relationships

Account-based marketing (ABM) has evolved into a sophisticated strategy for cultivating robust client relationships. B2B enterprises now deploy personalized ABM campaigns, tailoring messages to specific accounts for more impactful and personalized interactions.

The Junior Executives’ Revolution: Humanizing B2B Brands

2023 has seen junior to mid-level executives actively participating in humanizing B2B brands. This trend not only builds trust but also provides insights into the collaborative efforts behind the scenes, connecting individuals with the brands they represent.

In the dynamic and interconnected global marketplace, these trends signify a seismic shift in B2B marketing, demanding agile and innovative strategies to adapt to the ever-changing landscape.

In a recent development, the government announced that individuals eligible for Aadhaar can now enroll using iris scans if fingerprints are unavailable. This decision was prompted by the case of Josymol P Jose in Kerala, who faced difficulties enrolling for Aadhaar due to the absence of fingers. Minister of State for Electronics and IT, Rajeev Chandrasekhar, ensured Jose’s enrolment by instructing the Unique Identification Authority of India (UIDAI) to visit her home and generate her Aadhaar number using alternate biometrics.

The advisory issued to Aadhaar Service Kendras emphasizes that individuals like Jose, with blurred fingerprints or similar disabilities, should receive Aadhaar by utilizing alternate biometrics. Eligible persons who cannot provide fingerprints may enroll using only iris scans, and vice versa. If an individual cannot provide both finger and iris biometrics, they can still enroll without submitting either, with the available information captured along with highlighting the missing biometrics.

The enrolment process involves capturing the name, gender, address, date, and year of birth of the person, along with available biometrics. A photograph is taken to signify the unavailability of fingers or iris, and the Supervisor at the Aadhaar enrolment center validates such exceptional enrolments. The government emphasizes issuing Aadhaar numbers to every eligible person undergoing enrolment, regardless of biometric limitations. UIDAI has already enrolled approximately 29 lakh individuals with missing fingers or an inability to provide finger or iris biometrics through exceptional enrolment procedures, averaging 1,000 enrollments daily.