Reports & Insights

Thought Arbitrage Consulting (“TA”) in collaboration with TalentNomics India (“TI”) was commissioned to conduct a study for Konrad-Adenauer-Stiftung’s (“KAS”) Regional Economic Programme Asia (SOPAS). The study titled “Bridging the Gender Gap - Work, Wealth, Welfare and Well-being for Women,” aimed to assess gender equality and women’s economic empowerment with particular emphasis on 4Ws viz Work, Wealth, Welfare and Well-being.The study focused on women employed in the formal sector in 3 countries in South Asia, viz, India, Bangladesh and Sri Lanka, to explore the reasons for existing gender inequalities and lack of economic empowerment (if any). It was compared with a better developed country in South-East Asia, namely Thailand.Our approach to the study blended rigorous analysis of secondary data with insights from primary sources. We drew from globally recognised indicators, such as those from the World Bank, its Women, Business and the Law reports and the World Economic Forum's Global Gender Gap Report (amongst other sources). To triangulate this data and deepen our understanding of the realities in each country, we conducted surveys (with more than 1,100 respondents), one-on-one interviews, as well as focused group discussions and roundtables. These conversations informed our findings and revealed the cultural norms and policies that either accelerate or hinder women's career growth.This is not just a report — it is a call to action, a meaningful contribution to the ongoing public discourse worldwide, and a roadmap for creating a more equitable, inclusive and prosperous future for all. Our report offers concrete, actionable solutions aimed at fostering real change. We provide a comprehensive set of tailored recommendations for policymakers as well as the formal sector, outlining clear and practical steps that can advance gender equity.

Thought Arbitrage Research Institute (TA) prepared a comprehensive report titled Challenging Landscape of Illicit Trade: How Changing Factors of Consumption Affect Illicit Markets in 5 Key Industries in India. TA’s latest report estimates that the size of illicit markets in five key industries—FMCG (Personal Care, Household Goods, Packaged Foods), Tobacco Products, Textiles, Apparel, and Alcoholic Beverages reached ₹7,97,726 crores in 2022-23. Textiles and Apparel accounted for over 50% of the total illicit market, with an estimated size of ₹4,03,915 crores. The report delves into how income growth across different fractiles (income segments) reshapes India’s consumption landscape. Middle-income groups have become the primary drivers of consumption, accounting for a substantial portion of market demand across a broader range of goods and services. As this group’s purchasing power rises, their consumption extends beyond necessities to include more premium goods and services. However, this growth has a shadow side—the expansion of illicit markets. The expanding middle class also becomes a key consumer base for illicit goods due to the availability of counterfeit products at lower prices, as industries like FMCG, alcohol, tobacco, and textiles are particularly vulnerable to counterfeiters and smugglers capitalizing on rising demand. The report also highlights a clear relationship between higher taxes and the growth of the illicit market. Illicit trade is especially prevalent in high-tax industries like tobacco and alcohol, where consumers are drawn to cheaper, illegal alternatives. Price remains the key motivator, particularly among lower- and middle-income consumers, who are most vulnerable to counterfeit products. The report was launched at the 10th edition of FICCI CASCADE - MASCRADE (Movement Against Smuggling and Counterfeit Trade) on 25th September 2024 at The Lalit, New Delhi. The launch event featured Mr. Ravneet Singh Bittu, Minister of State for Food Processing Industries, Mr. Anil Rajput, Chairman of FICCI CASCADE, and Mr. Rajiv Talwar, Special Secretary to the Government of India.

Thought Arbitrage Research Institute (TA) prepared a comprehensive report titled "GST Regime in India: Development Pathways Using Tax as a Leverage". This report was presented during a panel discussion organized by the Think Change Forum (TCF) at the India Habitat Centre, New Delhi on 12th June, 2024. Our report delves into the significant transformation brought about by the implementation of the Goods and Services Tax (GST) in India. It provides an in-depth analysis of the GST framework, highlighting key features such as the dual GST model, destination-based taxation, input tax credit system and the compliance mechanisms. Our report evaluates the impact of GST on various aspects including ease of doing business, logistics, MSMEs, cooperative federalism, improvements in tax compliance and revenue collection. Additionally, the report identifies key issues and challenges within the GST regime, such as the complexity of multiple tax rates, the inverted duty structure and logistical challenges. Our study presents a series of recommendations aimed at simplifying the GST structure, streamlining classification systems, reducing the compliance burden on businesses and enhancing digital infrastructure. These recommendations are crucial for leveraging GST as a tool for economic growth and ensuring its effective implementation.

The Agenda of the United Nations places significant emphasis on addressing illicit financial flows (IFFs). This is a top priority, which is reflected in their SDG target 16.4 which aims to "significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets, and combat all forms of organized crime by 2030." Thought Arbitrage Research Institute (TA) prepared a comprehensive report titled "Hidden Streams: Linkages Between Illicit Markets, Financial Flows, Organised Crime and Terrorism" for FICCI's Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE). Our report was launched by Mr. Sanjay Kumar Aggarwal, Chairman Central Board of Indirect Taxes and Customs, Mr. Anil Rajput, Chairman of FICCI CASCADE and Mr. Anil Sinha, Former Director of the Central Bureau of Investigation during the 9th edition of MASCRADE (Movement Against Smuggling and Counterfeit Trade) held in New Delhi on 28th September 2023 at ITC Maurya, New Delhi. Our Report studies the hidden linkages in 122 countries and unveils a strong positive link and the relationship between organised crime actors and the illegal economy, including trade-based money laundering, counterfeiting, arms and drug trafficking and terrorism and crime. The study has a special focus on India and analyses the illegal economy, organised crime and terror by comparing it to the 122 benchmarked countries.

FICCI’s Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE)supported the latest report of the Thought Arbitrage Research Institute (TA) titled “REGULATORY INTERVENTIONS AND ILLICIT TRADE ACROSS BORDER: Impact on Six Key Industries”. This report that examines the impact of Tariff and Non-Tariff measures (NTMs) on illicit trade in six key industries – Alcoholic Beverages, Consumer Electronics, FMCG-Packaged Foods, FMCG-Household and Personal Goods, Mobile Phones and Tobacco Products. As per the report, the total illicit trade across the borders in the six industries is estimated at Rs. 54, 070 crores in the 2019-20 period. Among the six key industries, Consumer Electronics has the major share with 52%, followed by Tobacco Products at 21% and Mobiles Phones at 11%. The 2023 FICCI CASCADE first-of-a-kind report provides an understanding of NTMs in the six key industries through in-depth analysis in terms of Frequency, Coverage Ratio, and Prevalence Score over a period of time (2015 to 2020). The present study develops the empirical model to provide the impact of applicable NTMs in these industries on the illicit trade and finds that In comparison, Tariff and Price Quantity Measures have a much greater impact on illicit trade. The Report highlights: Different regulatory Interventions, NTMs have a different kind of impact on the illicit trade in different industries Alternate tariff measures, PQCM similar to the tariff are increasing illicit trade in all six key industries Sanitary and Phytosanitary (SPS) technical NTMs have a negative impact and can curb illicit trade in food consumables including packaged food and alcoholic beverages Competition Measures (CompM) have a negative impact in all six industries and a statistically significant negative impact in the case of consumer electronics Technical Barriers to Trade (TBT) NTMs have a different kind of impact on the illicit trade across 6 key industries. It has a statistically significant negative impact in the household and personal goods industry but a positive and statistically insignificant impact in case of consumer electronics and packaged food industry. Technical Barriers to Trade (TBT) and Price & Quantity Control Measures (PQCM) NTMs along with tariffs have a statistically significant positive impact in the case of tobacco smuggling Indices on Ease of doing across the border have improved in recent years and have a negative relationship with illicit trade Rule of Law, one of the key factors in controlling illicit trade has a negative impact on illicit trade among six key industries and has a statistically significant impact in the case of tobacco smuggling. The Frequency Ratio is the percentage of products affected by one or more NTMs while the Coverage Ratio is the trade value share of the products subject to NTMs. All six key industries have a 100 percent frequency and coverage ratio. All six key industries are highly regulated with each import tariff line (product within the industry) being subject to some type of NTM. The prevalence score shows the applicable NTMs on a given product and points out that regulatory interventions have increased during the 2015-20 period for all six key industries. Packaged foods meant for human consumption have the highest prevalence score (38) while consumer electronics and FMCG-household and personal goods having a large number of product categories have a significant variation in prevalence score among the products. The study used the prevalence score of three different types of NTMs to understand their impact on the illicit trade. First are the Technical NTMs including Sanitary and Phytosanitary (SPS), Technical Barriers to Trade (TBT) and pre-shipment requirements (C) to ensure food safety for human consumption, prohibit and regulate trade on hazardous substances, chemicals etc meant for human use. These NTMs have more than 75 percent contribution towards the prevalence score for FMCG products packaged foods, household and personal goods and alcoholic beverages. For other industries including tobacco products, mobile phones and consumer electronics, technical NTMs have over 50 percent contributions. The other two types are non-technical measures including Price and Quantity Control Measures (PQCM) and Competition Measures. PQCM NTMs are alternate tariff measures and include various policy measures like quotas, licences, price controls, para-tariff measures and contingent trade protective measures such as anti-dumping duties. Competition NTMs are certain behind border measures that aim to provide preferential treatment to domestic products and reduce their competition with imported products. Based on the empirical findings of the research models and the overall analysis of non-tariff measures, the report has made some recommendations for policy considerations to counter the menace of illicit trade. These include - Reducing Import Dependency, Rationalisation of Tariffs, Nodal Agency for NTMs Data Collection, Cost-Benefit Analysis of Regulatory Interventions, Harmonising Food NTMs with International Standards, Enforcement and Rule of Law and Capacity Building and Better Risk Management. Additionally, the report calls for International Coordination and Cooperation as it has now become a global phenomenon affecting nearly all countries in the world. The link to access the reportis

Debates on health and nutrition have often ignored the influence of diverse variables on food choices. In a country like India where food choices are shaped by many factors such as the climate of the place, the historical influences in the region, ethnicity of people and cultural preferences, any discourse on food preferences should take into account the impact of the changes on all stakeholders. Our report "Indian Cuisine at Crossroads" was prepared for ASSOCHAM Foundation for Corporate Social Responsibility (AFCSR) and it was launched on April 14, 2023 by Hon'ble Minister Commerce and Industry, Shri Piyush Goyal. Our report delves into the factors driving Indian food choices with insights from a nationwide study across 15 cities and it examined the complex factors which influence food habits in India to study how the country's food ecosystem can help bring food security to the population at large while ensuring that the country's food heritage is celebrated. Our report is a must-read for food enthusiasts and policymakers alike!

FICCI’s Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) supported the latest report of the Thought Arbitrage Research Institute (TA) titled Illicit Markets: A Threat to Our National Interests, which examines the impact of illicit trade in five key industries in India — Mobile Phones, FMCG-Household and Personal Goods, FMCG-Packaged Foods, Tobacco Products, and Alcoholic Beverages. The report methodology estimates the illicit market through the demand and supply gap and calculates the impact on the economy using multiplier effects that rely upon the widely accepted Input-Output model developed by Nobel economic laureate Wassily Leontief. According to the report, the size of illicit markets in the above-mentioned industries was ₹2,60,094 crore for the year 2019-20 with the FMCG industry — household and personal goods, and packaged foods — together accounting for 3/4th of the total illicit value of goods in five key industries. The report further estimates that unlawful trade in the five above-mentioned industries results in a total estimated legitimate employment loss of 15.96 lakh. The FMCG industry household and personal goods, and packaged foods, being more labor-intensive industries and due to their relatively higher illicit market size market account for legitimate job losses of 10.93 lakhs, about 68.5 percent of total job loss in five key industries. The estimated tax loss to the government due to illicit goods in these five key industries is ₹58,521 crore. According to the report, two highly regulated and taxed industries, tobacco products and alcoholic beverages account for nearly 49 % of the overall tax loss to the government due to illicit markets in these five key industries. While the FMCG packaged foods industry held the highest share of the illicit market at ₹1,42,284 crore, it was followed by the FMCG household and personal goods industry at ₹55,530 crores, alcoholic beverages industry at ₹23,466 crore, tobacco products industry at ₹22,930 crores, and mobile phone industry at ₹15,884 crore. In terms of the percentage of the illicit market, the FMCG household and personal goods industry was at the top at 34.25%, followed by FMCG packaged foods industry at 25.09%, tobacco products industry at 20.04%, the alcoholic beverage industry at 19.87%, and mobile phone industry at 7.56%. The impact of the illicit market of these key industries on the economy is pervasive and significant because of the backward linkages of these industries with other sectors of the economy resulting in a multiplier effect. The reports highlight that to deal with the menace of illicit markets in India, addressing the demand and supply gap of legitimate goods, strengthening the domestic manufacturing sector, increase awareness among consumers, creation of a conducive environment for innovation, and strengthen intellectual property rights (IPR) regime, regular monitoring by police and stringent punishment and law enforcement, better leverage of technology, greater coordination among enforcement agencies and better international coordination and cooperation are some of way forwards. Overall, cooperation of all stakeholders and concerted efforts of the government, industry, consumers, and international bodies are needed to achieve the challenging and mammoth task of reducing illicit markets.

Our report prepared in collaboration with ASSOCHAM is based on India’s largest primary healthcare survey carried by IMRB- Kantar covering 233672 people and 673 public health offices in 21 states, to analyse the rising cases of NCDs in the country and the social profile of suffering households has observed that India’s non-communicable disease burden is growing at an alarming rate with the average age for onset falling sharply. Some of our findings: • Prevalence of NCDs in India is 116 per 1000 population; shows a quantum jump among individuals above 35 years of age. • Hypertension, Digestive Diseases, and Diabetes are among the top three most prevalent NCDs; Cancer is the least prevalent. • Environment factors are the biggest cause of NCDs followed by inactive lifestyle and imbalanced diet; • Intoxication (alcohol & tobacco consumption) and leisure lifestyle fall at no. 6 to 8 rank. Significant variation exists in India when it comes to the prevalence of NCDs in different geographies and states. NCDs affect both rural and urban populations. Family structure also has bearing on the prevalence of NCDs as individuals from nuclear families are more prone to NCDs in comparison to joint families due to more workload and perhaps higher stress. Furthermore, males are found to be more prone to contracting NCDs than females except for hypertension and neurological disorders which are more prevalent in women. The battle against NCDs is half won if symptoms are detected early. It is imperative to prevent and control risk factors in an integrated manner by developing strategies and policies to inhibit the NCD burden on the country. Moreover, a conscious effort needs to be made to reduce sedentary lifestyle, break unhealthy habits like low physical activity, and unhealthy food habits that have become integral aspects of modern-day lifestyle and have been found to have the most significant role in causing NCDs.

Our study aims to create a best in class, replicable district framework which can be used by researchers, solution providers, funders and policy makers for designing a scalable district livelihood model that is future-resilient and creates sustainable social value.It is envisaged as an actionable, 360-degree research with supply, demand and ecosystem parameters considered. Our district-level study is meant to benefit all stakeholders – aspirants, to understand the changing scenario of work and scope for employment, employers to frame hiring and talent development policies, industry associations to adapt to the changing nature of work and adopt best employment practices, solution providers to utilise the district research framework to gain insights and scaleup their innovations, research institutions to leverage the research framework and data collection tools, and the Government to leverage the district livelihood strategy for widespread replication. The project led by Future Forward Skills Mission, a multi-donor collective impact platform is anchored by Tata Trust to identify, support and amplify livelihood solutions. TA was selected as the research partner for the study after a rigorous selection process.

The data relating to food borne and water borne diseases is limited in India. Therefore, there is a need to set up a database which can work as a warning signal and be helpful for the country to limit losses. Our study conducted in partnership with The Foundation for Millennium Sustainable Development Goals (FMSDGs) attempts to estimate the economic burden of food and water contamination in India using credible global and Indian databases. It also analyses various components of the food sector over output, employment and consumption to understand the demand and supply dynamics of the sector.

Mr. Nityanand Rai- Minister of State Home Affairs, Mr. Anurag Singh Thakur- Minister of State Finance and Corporate Affairs and Mr. P K Das-Chairman CBIT and Customs released our study with FICCI Cascade. . The report was released on 26th September, 2019 at "The 6th Edition International Conference on Movement Against Smuggled and Counterfeit Trade (MASCRADE) 2019" held at The Hyatt Regency, New Delhi.

Our study is an effort to deepen the understanding of fraud in the private sector in the period subsequent to March 2012. The Ministry of Corporate Affairs (MCA) commissioned our study under the CDM scheme.

TA, in collaboration with FICCI Ladies Organisation (FLO), administered the Gender Parity Index (GPI) and prepared a report on the results of the GPI survey for the formal sector in India. The report was formally released by the Hon’ble Finance Minister, Ms. Nirmala Sitharaman on 7th May, 2018 at a function held at FICCI. The survey was administered by TA over the course of one year, responses of individual respondents collated, cleaned up to facilitate analysis, critically analysed and then scored in accordance with the scoring methodology in the GPI Toolkit. The toolkit was released earlier by the Former Finance Minister Late Shri Aun Jaitley in April 2017. By participating in this survey, respondents have made a valuable contribution in a project to track best practices in industry on gender matters. The results are expected to lead to organisational introspection among those that have not performed as well as others and an effort at improvement even by high-ranking performers.

Our study “Ensnared in Poverty – A Study on Rural Indebtedness in India” undertaken for ASSOCHAM presents the trajectory of rural debt in India and an analysis of its reasons and consequences. It provides a comparative analysis of the situation from 2002 to 2012 followed by a study of the impact of new schemes introduced since 2014. It then lists out the challenges in implementing these schemes and provides possible solutions.

This report prepared by Thought Arbitrage (TA) in partnership with Broadband India Forum (BIF) and IIM - Calcutta is an effort towards understanding the challenges facing the mobile telephony sector. The report closely studies the mobile manufacturing segment in relation to intellectual property and its effect on costs, outflows and price from a macro, producers, consumer and other stakeholder's perspective. The report focuses on improving the state of domestic mobile industry by addressing issues of low innovation & R&D spending and enhancing the success of ‘Make-in-India’. It has significant correlation to the development and success of the 5G ecosystem where India seeks transformational leadership.

Our study analyses the Indian Tyre industry's economic potential, its key growth drivers and challenges in the current business environment. A benchmark analysis of India vis-à-vis other top tyre exporting and importing countries on key performance parameters helps in assessing the strength and weakness of our industry, identify strategies to improve competitiveness, both domestic and international, and interventions required from government and regulator.

India has made a reputation for herself as a global knowledge-based economy on the strength of its IT and ITeS sectors. However, though services sector contributes around 60% of the GDP of India, it absorbs only around 15% of the total work force. India’s demographics can be a potential source of significant strength and value for the country’s economy, but only if the working age population is adequately equipped with the right skills. This study conducted jointly with ASSOCHAM analyses skill gaps in each state of the Indian union and also the sectors in which specific skill gaps exist. Further, it examines major skill building initiatives of the government and appraises its trajectory in terms of employment generation in specific sectors. Finally, it identifies major issues in improving the effectiveness of skill development programmes.

Thought Arbitrage prepared this report jointly with ASSOCHAM to assess the existing conditions in the major sectors of state economy like agriculture, industry and services as well as in the crucial areas of A employment generation and creation of enabling infrastructure while keeping the focus on inclusive growth which ensures that the fruits of progress are shared by all sections of the population. This report has been compiled after considering various viewpoints including national and state level planning reports, Reserve Bank of India data, opinions of experts and a range of other sources, including manifestos of political parties for the recently concluded elections. We expect the report to serve as a quick guide to the areas needing interventions that would help the new government to focus its energies, for in the progress and growth of state lies the progress of India.

A joint vision paper for the Punjab government by ASSOCHAM and Thought Arbitrage Research Institute (TA) concludes that: the state has not realised its full potential of growth and development because of gross negligence by the policy makers and planners;
in agriculture, policies and strategies are appropriate and well laid out but not implemented and
in health, education and industries which are facing serious challenges and dragging down growth, appropriate policies and strategies are missing.
These three areas need complete policy overhaul.

This study conducted by Thought Arbitrage in partnership with ASSOCHAM makes an assessment of existing conditions in major sectors of the state economy, such as agriculture, industry and services as well as in the crucial areas of employment generation and creation of enabling infrastructure while keeping the focus on inclusive growth which ensures that the fruits of progress are shared by all sections of the population. The report comprises an amalgamation of several viewpoints, including national and state level planning reports, Reserve Bank of India data, opinions of experts and a range of other sources, including manifestos of political parties for the recently concluded elections.

Our study conducted in collaboration with ASSOCHAM analyses outcome of the most popular flagship programmes undertaken by Central Government and makes an assessment of intended and actual impact of these schemes. All these schemes were launched keeping specific target beneficiaries in mind. Efforts have been made to present a balanced perspective on these transformational government programmes.

TA prepared a Gender Parity Index in partnership with FICCI Ladies Organisation (FLO). The index is first of its kind in India. It measures the extent of gender parity in the formal sector, it is broad and holistic and addresses gender parity at a micro level, in the formal sector: the building blocks of an organized society. It is designed to encourage change in the way organisations think and work and in the process provide women with unprecedented opportunities, promote economic empowerment and provide tools to tackle new challenges.

Gold Monetisation Scheme (GMS) was proposed and launched in 2015-16, replacing both Gold Deposit and Gold Metal Loan Schemes. The stated objectives were - (a) mobilising gold held by households and institutions in the country, (b) providing boost to gems & jewellery sector by making gold available as a raw material, and (c) reducing reliance on import of gold over time. However, the scheme has evoked a tepid response so far, and in the wake of that, a primary survey based study has been undertaken by FICCI in collaboration with World Gold Council (WGC). This study was executed by TA with an objective to find out the reasons behind tepid response for GMS from all stakeholders - banks, jewellers, hallmarking agencies, refineries, and gold exchanges. The responses will culminate into a comprehensive set of policy proposals to boost the scheme.

This study aims to estimate the reach and impact of the various models for anti-malaria projects that have been implemented so far. It also aims at identifying the points of social, economic and political tensions that have impeded the success of anti-malaria and other vector borne diseases at the central and state levels. Based on the findings, our study focused on elements of the fresh approach that were undertaken\could be undertaken. We completed our study successfully.

This study by TA has been commissioned by ASSOCHAM to provide a focussed analysis of food processing industry and the various perspectives that will have an impact on the Government's Make in India initiative contributing to sustainable growth and development.

TA partnered with Assocham and prepared a background paper for the BIMSTEC-SAARC Women's Economic Forum on Women in Development, held on 13th January 2017, at The Leela Palace, New Delhi The conference was addressed by many eminent speakers, sharing their views on - Developing an Ecosystem supporting Women Entrepreneurship; Financial Inclusion and IT Literacy for Women; Women Leadership in Decision Making and much more. For more details of the background paper, please click on View Report.

Thought Arbitrage prepared a background paper for ASSOCHAM on the occasion of International Women's Day conference held in New Delhi. The conference was addressed by many eminent speakers, sharing their views on - Gender Parity.

TA undertook a recent study for FICCI Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) . The study provides better understanding of the consumption and trade of illicit cigarettes in India through a country-wide survey.

TA's joint study with ASSOCHAM, assesses the current employment situation of India based on past experiences and trends in generating employment. Recent experiences in employment generation were also analysed from a range of credible sources. The objective of this study was to understand policy implications in employment generation and coalesce that understanding into a set of policy suggestions.

Uttar Pradesh is one of the key states of India contributing about 8.1% to the country’s economy. With a population of 21.15 crores, it is the most populous state of India and about 59.5% of its population is of working age. The Government of Uttar Pradesh faces a major challenge of providing employment to this large working population. Intervention by the state in ease of doing business holds utmost importance, attracting investments for growth of industry and creating jobs for the population. The study conducted jointly with ASSOCHAM, included a secondary research and collecting evidences to assess the regulatory reforms and initiatives taken by the state government aimed at improving ease of doing business in the state.

TA's joint study with ASSOCHAM makes an effort to identify components that establish and nurture institutions and agencies which will effectively lead to a sustained start-up growth. The study also seeks to articulate the nuances, strengths and vulnerabilities of any aspiring start-up nation. The study brings out possibilities of the future roadmap of India and strives to fill up the huge gap between research and policy making as far as Indian start-ups are concerned.

TA prepared a Sustainability Report for Apollo Tyres Ltd. for the year 2015-16 based on ISO26000 International Guidelines on Social Responsibility and India's National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs). The report which highlights initiatives undertaken by the organisation towards sustainable development, can be accessed by clicking on View Report.

Have the regulations achieved governance ? The changes that the journey of Corporate Regulations has brought to Indian corporates and stakeholders since 2013 - benefits, challenges, burden are the highlights of this report. It also explores the challenges that companies are facing because of regulatory reforms. Companies believe that the compliance requirements have turned into a burden, rather than an opportunity for improvement and growth, which was the legislative intent.

TA conducted a study on ‘Female Labour Force Participation in India' to analyse India’s performance in female labour force participation (FLFP) in comparison with the rest of the world and to identify factors that determine FLFP in India along with the barriers to its growth. This study commissioned by ASSOCHAM presents a state-wise analysis of FLFP in four states in India selected on a non-arbitrary criteria. There was a special focus on UP as it is India’s most populous state with enormous potential to improve current national trends in female labour force participation. The other states selected for the study were Andhra Pradesh, Himachal Pradesh and Madhya Pradesh. For more details of the Report, please get in touch with us or with ASSOCHAM.

Budget 2016-17 may not have big bang reforms for the industry, but it has definitely made many smaller efforts towards reforming the system, increasing ease of doing business and providing incentives to all kinds of industries and services. These small steps may prove to be the building blocks of a future growth spurt in the next 3 to 5 years.

Inclusivess and Accessibilty Index, prepared by TA in collaboration with The Federation of Indian Chambers of Commerce and Industry (FICCI) aims at assessing the current stage of inclusiveness and accessibility of persons with disabilities by an organisation. It can also act as a guide for taking progressive steps to increase support, inclusiveness and accessibility towards persons / employees with disabilities. The toolkit is based on research, and the best examples and experiences of organisations that have taken initiatives to increase accessibility of persons with disabilities and have benefited from such initiatives.

TA's joint study conducted with ASSOCHAM depicts that UP government's thrust upon development of MSMEs across the state has resulted in establishing over 1.66 lakh MSMEs with an investment of over ₹13,000 crore. This has also resulted in generation of over 8.5 lakh employment opportunities during the 11th FYP (2007-2012).

The Indian construction sector’s contribution to GDP has stayed fairly constant at around 7-8% for the last five years. It is the second largest employer after agriculture, and forecasts indicate that for the Twelfth Plan period the aggregate output of the industry is likely to be ₹52.31 lakh crores. Given these facts and the strong backward and forward linkages of the sector with other manufacturing industries, construction is a natural priority sector. This study therefore focuses on the construction industry. It attempts to determine where the potential lies, for it to contribute to the dual objectives of the ‘’Make in India’’ initiative and to meet increasing demand for construction. For more details of the report, please contact us.

As India moves towards 75 years of independence in 2022, it should reach at the development stage, where dreams and aspirations of billions of Indians can translate into reality. Our study envisages two alternative pathways to India's growth up to the year 2022 and estimates the quantum of accelerators including policy interventions needed to enable the leap to realise the potential of the country. Several growth drivers and enablers have been considered in designing the econometric model to generate the two plausible growth trajectories for India. For more details of the report, please contact us.

Gems and jewellery industry has a huge potential to contribute to India’s dream of becoming the manufacturing hub of the world. It has a big market size; is export oriented and labour intensive and its growth prospects are quite high. With a multiplier effect of 5.2 on employment, 4.22 on value added/income, 3.1 on indirect tax and 2.68 on output, all it needs is the right push. Besides calculating the multiplier effect, this study identifies the growth drivers of gems and jewellery industry for short, medium and long terms; identifies the challenges and suggests what needs to be done to realise its full potential – extending ‘industry’ status to it, enabling growth of the organised sector within the industry, improving and implementing standards and rationalising import and tax policies etc. For more details of the report, please contact us.

Textiles and apparels is one of the oldest and largest industries in the Indian economy in terms of employment,output and foreign exchange earnings, thus contributing greatly to the exchequer. Given its potential to boost manufacturing, this study focuses on how it can contribute to the government’s Make in India initiative and is the first of a series by TA in collaboration with ASSOCHAM. The study corroborates the potential the industry holds and identifies growth drivers which, if tapped appropriately, can further boost growth. It calculates the multiplier effect demonstrating the impact of increasing demand in the industry on employment (5.17), output (2.58) and value addition (3.92) on the economy as a whole and suggests ways to remove the roadblocks for sustained growth. For more details of the report, please contact us.

India and Africa are expected to be the next frontiers of growth in a world affected by an economic slowdown. This presents an opportunity for striking a mutually beneficial partnership between these two regions to realise their true potentials and surge ahead. Our study says that a broader framework of such a partnership can be built on three pillars – food security, energy security and mutual prosperity. The study goes beyond the routine approach of crafting individual African country’s trade profiles and shows possibility of a new model of growth by exploring the patterns of exports and imports and identifying potential products and markets from both Indian and African perspectives. It also provides a future road map for a relationship which is inter-dependent and complementary. For more details of the report, please contact us.

TA prepared a Sustainability Report for Apollo Tyres Ltd. for the year 2014-15 based on ISO26000 International Guidelines on Social Responsibility and India’s National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs). The report highlights the initiatives taken by the organisation towards sustainable development.

The study takes an industry-specific look at manufacturing – industries having comparative and competitive advantages in the near and mid-terms, their enablers, their challenges and key implementation strategies to make the ambitious and transformational ‘Make in India’ initiative a success. It has been peer reviewed by eminent economists like Dr Pronab Sen, Dr BN Goldar, Prof NR Bhanumurthy, Prof B Nag and others.
It identifies 14 industries on the basis five economic parameters – market capitalisation, industrial productivity, TFP growth, export competitiveness and alignment with demographic advantages – for special focus. In addition, it says promotion of entrepreneurships and a start-up ecosystem will go a long way in generating livelihood for the millions joining workforce every year.

India accounts for 21% of the world’s burden of disease. Worse, it faces a double disease burden, resulting from high incidence of communicable diseases (CDs) and greater incidence of deaths due to non-communicable diseases (NCDs). Therefore, India needs to adopt an approach which includes predictive medicine for targeted treatment along with preventive medicine to manage the double disease burden.
This study points out how India also needs to ensure public health expenditure in tandem with the trends of the burden of disease, which is not the case. For example, in 2012, the recorded incidents of CDs and NCDs were in the proportion of 4:96 (4% of CDs and 96% of NCDs), but the public expenditure was opposite – 91:9 (91% expenditure on CDs and 9% for NCDs).

The size of illegal market in the automobile industry of India is estimated to be a whopping 33.7%, causing a loss of Rs 10,501 crore to the industry in 2014. Given the fact that counterfeit motor parts also causes accidents and accidental deaths, this is a serious matter that requires immediate government intervention. The size of such market was estimated to be 29.6% in 2012.
This is one of a series of TA-FICCI-CASCADE studies on the threat of illegal or grey markets in India. TA pioneered the study of such markets in 2012 by developing its own methodology which is now recognised and approved internationally. This and other such studies also assess the impact of grey markets on investment, innovation, taxation and organised crime.

The size of grey market in alcoholic beverages registered a maximum jump – up from 10.2% in 2012 to 16.7% in 2014. This meant a loss of Rs 14,140 crore to the industry and Rs 6,309 crore to the government in revenue in 2014. In 2012, the loss to the industry was estimated to be Rs 5,626 crore and to the government Rs 6,309 crore.
The study also finds that the growth of grey market has stymied investment in the industry and there is very little innovation. Multiplicity and high rates of taxes have neither curbed consumption nor improved revenue. In fact, high growth of the grey market suggests that such policies have proved counterproductive and needs to be revisited.

The broadcasting industry faces its unique set up problems of piracy and copyright infringement arising out of unauthorised relay of signals. Since the government data is limited to production and consumption of equipment, and not signals, it is difficult to assess the size of illicit market here.

The extent of illicit markets in computer hardware industry has increased marginally between 2012 and 2014 due to the increase in demand and growth of the industry, but the loss to the industry has grown significantly – from Rs 4,725 crore in 2012 to Rs 7,344 crore in 2014. This has led to a loss of Rs 1,923 crore in revenue for the government.
This study finds that there is little innovation, R&D expenditure has been falling and the industry is increasingly dependent on imports. There is an urgent need, therefore, to invest in indigenous manufacturing capability and utilise assets more efficiently to meet the growing demand and reduce import dependency.

Our study of FMCG-personal goods industry shows significant presence of illicit market which is also growing – from 25.9% in 2012 to 31.6% in 2014. This has adversely impacted innovation and investment, none of which is good for the businesses, government or consumers. The resultant loss to the industry was Rs 15,035 crore in 2014, which is a cause of serious concern.
Illicit markets also undermine employment and raise prices of products as companies increase security systems to counter organised criminal activities. Fake and spurious goods can have serious health and safety implications. A collaborative effort from all the stakeholders is needed to tackle the menace.

The FMCG-packaged foods industry is the only one under the TA-FICCI-CASCADE study which shows a declining grey market size – from 23.4% in 2012 to 21.7% in 2014. This is also accompanied with a relatively higher number of patents but low R&D expenditure and GVA, increasing use of indigenous inputs and declining trend of imported inputs and finished goods.
These confusing and contradictory signals indicate that producers have found ways to beat grey markets without significant innovation or investment in products, which could be explained by the nascent stage of the industry, which is rapidly growing, and use of innovative and state-of-art packaging which doesn’t involve capital investment. However, to sustain high growth and momentum, the industry would have to invest in product innovation R&D.

The study looks at two categories of motion picture industry – domestic box office and home video – which consists 78% of the total industry. The grey market size is estimated to be 12% in box office and 55% in home video segments. The loss to the industry is estimated to be Rs 1,300 crore.
The study proposes several measures, including systematic data collection on the demand and supply sides of the industry, improvement in screen penetration, vigilance, streamlining tax structure and inter-government intelligence sharing to curb the grey markets.

Keeping with the trend in most industries under study, the mobile phone industry has also witnessed an increase in its size of grey market. It went up from 20.8% in 2012 to 25.4% in 2014. This translates into a loss of Rs 19,066 crore to the industry and Rs 6,705 crore to the government in terms of revenue.
While the impact of grey markets on investment and innovation can’t be estimated in absence of data, the industry is highly dependent on imports of finished goods. This implies that value additions and jobs are being created overseas and not domestically. This trend needs to be corrected immediately if the ‘Make in India’ initiative has to succeed.

Ironically, increase in tax on tobacco products has led to increase in the grey markets and lower tax collection in most Indian states, defeating the very purpose of imposing higher tax rates. Further, states with significantly higher taxes are losing revenues to neighbouring states with lower taxes, which are being fuelled by illegal players and often by organised criminals.
The study says grey market has increased from 15.7% in 2012 to 20.2% in 2014, causing a loss of Rs 13,130 crore to the industry and Rs 9,139 crore in revenue to the government. To curb it the study proposes, among others, uniformity in taxes on all tobacco products and streamlining of state levies on tobacco through implementation of GST.

This is the output of deliberations of 28 top economists and social thinkers of India, including Dr Ashok Lahiri, Dr Pronab Sen, Dr BN Goldar, Dr DK Drivastava, Dr George Mathew, on the possible growth pathways of India, supported with additional research and peer reviews. It looks at the drivers, issues of financing and socio-demographic factors that will affect long term growth.
The study makes an effort to segregate all these factors on the basis of their importance and time period for which they will be critical for India’s growth to capture which a 2X2 matrix has been developed. It also discusses how various drivers could be shocked to achieve a certain higher growth trajectory.

This is executive summary of 9 illicit markets studied by TA – FICCI CASCADE : FMCG Packaged Goods, FMCG Personal Goods, Automobiles, Computer Hardware, Mobile Phones, Tobacco, Alcoholic Beverages, Broadcasting and Motion Pictures industries detailed in separate reports. says illicit markets grew significantly to cause a loss of Rs 105,381 crore to these industries in 2014. It estimates size and growth of illicit markets in each industry between 2012 and 2014. The alcoholic beverages industry grew the most, by 63.7%, and computer hardware the least, by 27.9%. Rapid technological advancement and economic liberalisation seem to have opened up avenues for growth of a parallel economy, impacting investment and innovation adversely.

Bidi accounts for 64% of total tobacco consumption in India and the economic burden of diseases caused by its consumption is estimated at Rs 66,880 crore. Bidi smoking causes cancer and other non-communicable diseases (NCDs) which claim 60% of all deaths reported in the country. Loss of productivity due to bidi-related illness works out to Rs 4,761 crore.
But that is only one aspect of it. The other is high healthcare cost driving millions of poor into debt and destitution. But policymakers have been soft towards bidi because it is considered a poor man’s indulgence and source of livelihood. The report argues that such an approach is counterproductive and anti-poor.

For the first time in India, this study estimates and quantifies the extent of piracy in publishing industry for which TA developed its own methodology. It finds that piracy grew in the range of 17-20% during 2007-8 and 2011-12. The loss in sales revenue due to this is estimated to be Rs 8,334 crore in 2011-12 – up from Rs 3,885 crore in 2007-8. In view of the adverse economic and social impact of piracy, the study calls for several measures to create effective deterrent environment and mechanism as well as public awareness and outreach.

The study examines over 700,000 land transactions spread over three decades in four representative districts of India to assert that circle rate which determines land valuation and compensation is unscientific,grossly unfair and driven by historic data no longer relevant. It says a scientific approach must be adopted to discover fair price for land. The study says circle rate is flawed because it doesn’t take into account economic and locational factors that influence land price nor does it reflect the information asymmetry that prevails in rural hinterland. That would probably explain why official land price is often less than half of the market price of land. The study says unless circle rate is fixed conflict over land will continue.

In an increasingly globalised world, where diverse stakeholders interact within and across borders, different levels of transparency in different systems pose a challenge to effective engagement especially in the economic sphere. India’s democratic polity, liberalising economy, its institutions, and increasingly conscious civil society are interacting to create a greater demand for transparency than ever before. Good governance, transparency, integrity and accountability are the fundamental principles on which any society functions. India’s steady progress as a credible economic force in the region and internationally depends also on it transforming itself into a secure investment destination where its markets promote fair competition for domestic and international, small and big businesses without compromising the objectives of sustainable and inclusive growth. This theme paper focuses on the current state of regulatory measures, challenges and the potential collaborative actions that may be taken by the industry with relevant stake-holders.

The legislative framework of the country has been moving towards developing stronger, dependable and more participative/wider capital markets in India; as a result, they witnessed significant growth in this period. There is also a flip side to the story: the increasing number of scams and volatility in the market during this period. With the help of market regulators like SEBI and supportive legislation, a concerted attempt is being made to deliver clean markets. This paper seeks to take stock of the current situation; to see the kind of impact some of these activities have had on the market. Such an attempt has to be, by its very nature, a matter of vast scope; this paper is an attempt to approach the subject from certain perspectives, thereby contribute to the understanding of the current scenario.

Power to the Planet - Sustainability Disclosures by the Indian Power Sector is a study that examines the major power sector companies in India to understand their communication of commitment towards sustainability matters. Traditional power companies, particularly thermal power plants (whose share in the energy mix in India is more than 57%), are among the highest consumers of finite and non-renewable resources which calls for higher demonstration of commitment towards sustainability reporting. The study found that very few power companies in India report on sustainability matters in any form, particularly dedicated sustainability reports. Accordingly, this analysis focused on information contained in annual reports and websites of the companies in the sample and information put out by the Ministry of Power. It also looked at the gainful utilisation of fly ash, a by-product of thermal power plants which is a significant source of air and water pollution. The study has analysed the preparedness of power sector companies in submitting Business Responsibility Reports for compliance with SEBI’s new clause 55 and finds that there is still a long way to go for these companies as the quality of disclosures that do exist requires substantial improvement. Sustainability reporting practices of the top ten global utilities companies (as per Forbes magazine’s Global 2000 list) were also studied to get a sense of the major concerns, risks and opportunities identified by them and the extent of reporting. The study revealed that globally, like in India, thermal power (coal and gas) constitutes the largest share of the energy mix, although unlike India nuclear energy has the second largest share. Sustainability reporting among global power utilities is more robust with several companies using established global frameworks and addressing specific sustainability issues.

This is probably the first report in India which analyses with quantitative data of over 15 years for fraud and corruption committed by management and owners of private sector companies. The data is analysed over 25 parameters to diagnose the learnings and do a root cause analysis based on data of indicted cases. The report is done by Thought Arbitrage Research Institute in partnership with UN Global Compact India and supported by Indian Institute of Corporate Affairs of the Ministry of Corporate Affairs. This report was released to the press on 24 June 2013 and was presented in St Petersburg in Russia at the B-20 meeting on 20 June by UN Global Compact, US. Our report has also been referred to in the book titled "Corporate Reputation Decoded: Building Managing and Strategising for Corporate Excellence" by Asha Kaul and Avani Desai.

RBI plays a leading role in formulating and implementing corporate governance norms for India's banking sector. The ambit encompasses safeguarding and maximizing the shareholder's value, upholding retail depositors risk and stabilizing the financial system to conserve the larger interests on public. We have analysed financial information of banks which constitute 70% of total capital and reserves of the banking sector for a period of 5 years to examine whether RBI-prescribed corporate governance norms are effective. We conclude that RBI is an effective and efficient regulator of the banking sector and a good gatekeeper of corporate governance in the sector. Our study has also been referred to in the book titled "Corporate Governance in Developing and Emerging Markets" by Franklin N Ngwu, Onyeka K Osuji and Frank H Stephen. For more details of our study, please click on View Report.

Thought Arbitrage Research Institute proudly announces the completion of a pioneering study in India, which calculates and evaluates the socio economic impact of counterfeiting, smuggling and tax evasion across key sectors in India.The study conducted on behalf of FICCI-CASCADE extensively relied on government published sources of information to estimate the sales loss to industry sectors such as automobiles, alcohol, computer hardware, fast moving consumer goods, packaged food, tobacco, mobiles and pharmaceutical. The loss to these industries is more than Rs 1,00,000 crores.
The study’s findings on loss to exchequer of Rs 26,190 crores, hazards to consumer safety, criminal nexus of the counterfeiters and the risk they pose to our nation and the society at large has been extensively covered by the media.
We hope that our milestone study will help the government, policy makers and industry to initiate remedial, enforcement and policy responses so as to curb this menace.

The study aims at:
1. Assessing two current major trends: Integrated Reporting and the use of ICT, which are expected to generate more focused, interactive reports.
2. Highlighting the macro trends influencing sustainability reporting as identified by mainstream and SRI investors, international experts and opinion leaders in the field.
3. Providing information on specific reporting by newcomers (SMEs, public agencies) as well as locally sourced information pieces on the current and future state of sustainability reporting within three of the world’s largest emerging economies (Brazil, China, South Africa, India).
After 10 years, sustainability reporting has become mainstream for big-listed businesses in many countries, with GRI reporting being the standard. Despite this, there has been no sea change in integrating sustainability into business strategies.
Stakeholders don’t read reports and don’t use them for decision-making. They want more specific and more accurate information. No longer can one solely publish a one-size-fits-all report and get away with it.
Huge parts of the economy remain opaque: SMEs, public agencies and SOEs. In emerging countries, where family owned businesses are prominent, sustainability reporting is still an exception.
Sustainability reporting has to evolve to serve its initial goals.
This report presents findings on evolving trends impacting sustainability reporting in the 21st century, based on common opinions expressed by experts, producers and consumers of sustainability reports. From the various surveys conducted with our targeted pool of resources, the results of all our analysis presented here highlight three main trends and seven sub-trends that are most likely to define reporting standards in this century

The Sustainability Reporting Practices and Trends in India 2012 – joint research by the Deutsche GesellschaftfürInternationaleZusammenarbeit (GIZ) India, the Global Reporting Initiative (GRI) Focal Point India, and Thought Arbitrage Research Institute. The study focuses on analysing existing sustainability reporting practices in India across eight key economic sectors: Oil and Gas, Pharmaceuticals, Information Technology (IT), Banking, Metals and Mining, Construction, Power, and Automotive. It also explores the reasons behind reporting, and attempts a root cause analysis to establish factors that impede reporting in India. The report gives an analysis of 110 annual reports, 75 sustainability reports and disclosures (either using the GRI Sustainability Reporting Guidelines, in response to the Carbon Disclosure Project (CDP) questionnaire, or aligned to the United Nations Global Compact (UNGC) Principles), and scrutinised 110 websites for accessing information on sustainability parameters. The study examines disclosures and methods deployed to report on sustainability performance cutting across these eight sectors on their environmental, social, economic and governance performance. The study also exposes trends in the process of reporting, such as stakeholder dialogue, senior management involvement, linkage of sustainability performance to business strategy, and the extent of disclosures on performance indicators.

The study is an endeavor to take stock of the corporate governance environment in India as it exists today. Simultaneously, it is an attempt to puzzle out, in concrete terms, the pressuring issues and the resultant course of action going forward particularly some specific action points beneficial for the Indian business environment. The journey in that direction has already begun: the incorporation of SEBI with a stated aim of creating open and participative markets and its fair success in managing the markets in what has been clearly a very dynamic and challenging decade for them; the new Companies Bill with an explicit emphasis on promoting best practices in corporate governance and MCA's more active redefined role in it; RBI's notable management of the Indian banking sector in the last few years of widespread failures in the financial sector on other parts of the world. Deep understanding of underlying factors and issues is going to become important. This study is one the many contributions that will be required to complete the journey successfully.

In January 2012, GCV based pricing mechanism which CIL had introduced in December 2011 was rolled back under the directions of MoC and CIL reverted back to the old pricing mechanism based on UHV. Following such change, TCI raised several issues with respect to the Company in relation to fairness of coal pricing, corporate governance etc. Significant among them are:1. The sale of coal at a 70% discount to international market prices despite the deregulation resulting in a loss of US$20 billion a year.
TCI claims that sale of coal at discounted prices benefits only politically connected industrialists and not the general public. It also alleged that the government had sold shares to the Indian public and foreign investors in the IPO (in 2010) based on misrepresentation that there is an independent board and that the price of coal is deregulated according to the law that is upheld in Supreme Court rulings.
2. Pressure by the Government to sign Fuel Supply Agreements (FSAs) which obligated CIL to supply at least 80% of the contracted quantity of coal (even if it has to import coal) to the power projects, failing which it would be penalized.
3. Repeated failure of the Company to engage with TCI on various matters including the implementation of coal washing infrastructure and processes.