INSIGHT

WHAT DOES 2016 HAVE IN STORE FOR THE WORLD

1. Will Oil and Commodity prices fall furthur
2. Will Brazil fend off the storm that has hit its economy
3. How will the flow of Immigrants in Europe effect the Euro
4. Is the worst over in China
5. Will consumption grow in the US
6. Will the lifting of the embargo on Iran improve the economy
7. How will Saudi Arabia manage the Budget deficit due to the fall in Oil revenues
8. Will China keep rattling the sabre in the South China Sea
9. Will the Syrian crisis spill over and make the Daeash prophecy a reality

What and to which extent will El Nino hit the world in 2016
How will the World economy and Stock exchanges react

WHAT DOES INDIA LOOK FOR

 Will we justify the fath the World has put on our GROWTH
 Political stabilty if the BJP looses more State elections
 Will GST be implemented
 Will the 7th Pay Commission give the impetus to Demand
 Will the Banking Sector face more pain due to recognition of NPAs
 Will the Core Sector grow
 Will Realty look up

AN ATTEMPT TO LOOK INTO THE FUTURE AND THE EFFECT OF TECHNOLOGY

TAXATION UPDATES
o Income Tax……………………….a friendlier interface
o Service Tax……………………….additional Clean Cess-new rate 14.50%
o VAT UK……………………………….online Form 16 mandatory from 31st Dec
o Company Law………………………increased compliance and reporting under Co Act 2016
o GST……………………………………….will the rate be 18% ? a higher tax on SIN goods!

COMMERCE
o E COMMERCE…………………….growing exponentially
o FDI……………………………………….a welcome assist to Indian manufacturers in Defence production

LABOUR

o PF………………………………………..portability
o No grace period of 5 days for PF payment
o Gratuity……………………………..expected amnedment in the minimum 5 year service provision
o Payment of Bonus Act…….amended
o Minimum Wages……………….will be increased
o Contract Workers………….to be protected under expected amnedments to the Act
o 7th Pay Commission…………..an additional addition to the Budget expenses
o Employment squeeze………..automation to generate growth in Service sector

ACCOUNTING
o The introduction of new accounting standards “IND AS”from 1.04.2016
o The concept of “fair valuation” on all aspects of Accounting

RBI
o SDR…..Strategic Debt Restructuring
o FCRA…..online application and renewals
o Marginal cost of Funding…..tranparency in Interest rates
o Appointment of Statutory Auditors……..PSBanks authority on selection taken back by RBI
o Mobile banking……..inclusion…..a Bank in itself

THE WORLD…..TURMOIL…PAIN…OPPORTUNITY

 As we enter 2016, after a mixed year of market turmoil (see Oil and China) and economic recovery (see the US and UK), here is a look ahead at what things may hold for business and the economy.

 Both the US and UK economies are mending strongly and have reached the point where central bank policymakers want to bring interest rates back into the realm of normality
 But central banks in the eurozone and Japan are still contending with weak economies so need to keep the money tap flowing
 The US economy will seek to retain its role as the engine of global growth in 2016. However, growth is likely to remain modest compared with previous economic cycles
 Oil prices and other Commodities
Oil prices were in freefall, down from around $120 (£79, €110) a barrel of Brent crude in July 2014 to below $40 in December 2015, amid a glut in supply. Counter intuitively, OPEC countries maintained their oil output. Oil prices are forecast to remain suppressed in 2016.
As for Commodities more generally, prices are set to rise more slowly than anticipated across the board. Headwinds include a strong US dollar, oversupply and weakening demand from the likes of China.
 Slower growth in China

 Within a matter of years, China will overtake the US to become the world's largest economy. China's economic growth has been slowing in recent years more quickly than expected ,China has undershot its growth forecasts for some time Oxford Economics forecasts this growth to be much slower still, coming in at 6.3% in 2016, weighed down by slowing consumption growth slows because of lower wage rises, and a slump in construction.
 Emerging market debt
 The IMF sounded the alarm on a giant stockpile of debt in emerging markets -- $18tn, to be precise, with $3tn of that tagged as "over borrowing" -- after corporates gorged on cheap money in low-rate western markets. Western central banks will very soon start raising interest rates so will debt repayment costs. The fact that emerging market economies are weakening, in particular those with a high concentration of commodities exports, and therefore that heightens the possible risks coming from emerging market debt." Will 2016 be the year that emerging market debt blows up?
 Global economic growth will be 'steady but sluggish'
 World growth has been stuck in a sluggish phase

 since 2011 and this will continue in 2016. Growth prospects for 2016 have deteriorated during 2015, in particular due to poor performances in key emerging markets (EMs). The advanced economies have generally performed a bit better
 The US and Europe appear set for modestly stronger growth whereas Asia, led by China, appears headed for weaker growth. The big difference between these regions is the degree to which private sector balance sheets have deleveraged.
 Monetary policy divergence will be a key theme for the global economy next year. Further stress in some EM economies and on their currencies, and continued weakness in commodity prices.
 Instead, 2016 will be a year of living dangerously, papering over cracks and buying time before all the old problems resurface.
 So prediction number one for next year is that both inflation and interest rates will stay lower for longer than currently anticipated. The Fed raised interest rates for the first time in almost a decade earlier this month,.
 The next theme of 2016 will be China, where the question is not whether the pace of growth will slacken, but by how much. Expert opinion differs about the state of the world’s second biggest economy. China will slow in 2016 but policy easing will prevent a collapse.
 In 2016, that “crisis” could be Greece, caught in a debt and austerity trap, it could be rudderless Spain or moribund France.
 Brazil has debt rating cut to 'junk' status as problems mount.Brazil is the country to watch out for. It is the biggest economy in Latin America and in serious trouble. The economy is contracting at its fastest rate since the 1930s, inflation is above 10%, the currency has collapsed .There will be no explosion in 2016, but a fuse will be lit.
 .
 Europe is slated for moderate growth, 1.9 percent measured by GDP.
 Canada will grow a bit more slowly than the U.S. due to its concentration in oil and other commodities. Mexican economic growth is solid, with low inflation and low unemployment.
 Asia is the wild card for the global economic outlook. China in particular is opaque, Japan has relapsed into recession, India’s growth remains strong, but capital spending has slackened this year. Consumer spending and low commodity prices are strengths that should enable India to continue its strong expansion.
 The world economy isn't heading for disaster in 2016, but don't expect it to surge.

 India and other emerging markets will be the superstars.
 Almost no one believes China's official government data on growth, which indicates a minor blip right now. But the broad consensus is that China is having a "soft landing."
 U.S. consumers have to keep spending
 But U.S. businesses are still hoarding cash. They aren't investing much in the future
 The opening of the Panama Canal locks is just one likely event in what promises to be an eventful year for the global economy.
 The biggest event of all could be a referendum in the U.K.—possibly in October—on whether to remain part of the European Union.
 China will continue to decelerate. The U.S. will continue to outperform its rich-nation peers.

 Some of the benefits of cheap oil might be undone by unusually bad weather around the Pacific Rim. What’s shaping up to be one of the three strongest El Niños since 1950 will cause “major disruptions, widespread droughts and floods,

.
 Europe’s refugee crisis is a fresh stress on the EU. The strange thing is that it may stimulate short-term economic growth, at least in Germany.

 It’s been a hellacious year for Brazil (political crisis, oil) and Russia (sanctions, oil).

 The world economy is returning to the slower pace of the preceding 150 years. In other words, it’s not just a matter of applying the right stimulus here and there. “The problem,” King says, “is deeper.”

INDIAN CORPORATE EARNINGS

 The earnings of the Indian corporates for the past couple of quarters have been tepid. While the investment cycle is yet to turn, various economic and political factors have kept the earnings growth subdued
o
 India Inc earning to GDP bottomed out?


 It is quite evident from today's chart of the day, that the corporate earnings to GDP ratio has hardly seen any improvement. In fact the ratio has continued to decline.

 Years 2007 and 2008 have been best for the Indian corporates in terms of profitability.

 In FY15, the ratio stood at 4.0%, the lowest since FY04.



While corporate India continues to witness poor earnings growth, the challenge looming large over banks is the recovery of bad loans. As the Indian banking system continues to grapple with stressed assets the RBI has directed banks to clear these bad assets by 2017, through SDRs (Strategic Debt Restructuring). SDR accounts put together amount to Rs 641 billion of loans, or 1% of total loans in the sector.

 
Just few days back OPEC's decision not to cut oil production have further plunged the oil prices. US has decided to lift a four decade old ban on oil exports. India seems to be a key beneficiary.

 After opening on a flattish note, the Indian markets have witnessed selling pressures and are trading well below the dotted line………….. All the sectoral indices were trading in deep red with stocks from software and banking sectors facing maximum brunt.

Monetary limits for filing of Appeals
The new monetary limits for filing of Appeals by the Departments are as under:

S. No Appeals in Income Tax matters Monetary Limits (in Rs.)
1 Before Appellate Tribunal 10,00,000/-
2 Before High Court 20,00,000/-
3 Before Supreme Court 25,00,000/-

Electronic filing of first Appeal-, electronic filing of appeal before CIT(Appeals) is being made mandatory for persons who are required to file the return of income electronically.
The new format for filing of appeals is more structured, objective, systematic, and aligned with the current provisions of the Income-tax Act.
CASS Scrutiny- The CBDT has also stated that as far as the returns selected for scrutiny through CASS-2015 are concerned, two type of cases have been selected for scrutiny in the current Financial Year – one is ‘Limited Scrutiny’ and other is Complete Scrutiny’.
QUOTING OF PAN-CBDT has decided that quoting of PAN will be required for transactions of an amount exceeding Rs.2 lakh regardless of the mode of payment. The monetary limits have now been raised to (1)Rs. 10 lakh from Rs. 5 lakh for sale or purchase of immovable property,(2) to Rs.50,000 from Rs. 25,000 in the case of hotel or restaurant bills paid at any one time, and to(3) Rs. 1 lakh from Rs. 50,000 for purchase or sale of shares of an unlisted company.(4)the requirement of PAN applies to opening of all bank accounts including in co-operative banks.
TDS under section 194A of the Act on interest on fixed deposit made on direction of Courts-it is clarified that interest on FDRs made in the name of Registrar General of the Court or the depositor of the fund on the directions of the Court, will not be subject to TDS till the matter is decided by the Court
Reporting of all Purchase and Sale transactions in excess Rs 2.00 lacs

Applicability of service tax on the services received by apparel exporters in relation to fabrication of garments
SERVICE TAX

The exact nature of service needs to be determined on the facts of each case which would vary from case to case. The terms of agreement and scope of activity undertaken by the service provider would determine the nature of service being provided. Every job work is not covered under the negative list. If the job work involves a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944, it would be covered under negative list in terms of Section 66D(f) read with section 65B (40) of the Finance Act, 1994.

Come Budget 2016, the mutual fund industry will get full and final relief from its service tax headache. The Association of Mutual Funds of India (AMFI), the fund industry body, has negotiated with the Central Board of Excise and Customs to levy service tax only on those agents and distributors who earn a total commission of Rs 10 lakh and above

GST
ROCEDURES & COMPLIANCES UNDER PROPOSED GST LAW

Introduction
After a lot of deliberation, Govt. has finally unveiled the proposed common indirect tax regime- Goods and Services Tax (GST).
.

Registration in GST regime

GST law on registration provides that a taxable person in the GST regime will be required to take State specific registration. Further, multiple registrations in a State for business verticals would also be permitted.
There could be an ambiguity if a person already registered under earlier law if falls under threshold exemption limit of turnover under GST then whether he is liable for registration under GST law?

As regards registrations, one can also apply voluntarily for GST registration. However, in case of person engaged in inter-state supplies, casual taxable persons or a person liable to GST under reverse charge, irrespective of turnover, registration would be compulsory.
Payments in GST regime
-cross utilisation of cash/credit under CGST for payment of SGST and vice versa will not be allowed.

Tax deduction at source

The Central or State government may mandate to deduct tax at the rate of 1% from the payment made or credited to the supplier of taxable goods and / or services as notified by the Central or a State government, where total value of such supply, under the contract, exceeds Rs 10 lacs. The value of supply for TDS would be excluding the tax indicated on the invoice.

Returns in GST regime

Every registered assessee will be required to file returns (including NIL returns). It is pertinent to note that there could be as many as 8 returns as under:
Type of Return Description Due date of filing
GSTR 1 Outward supplies made by taxpayer 10th of the succeeding month
GSTR 2 Inward supplies made by taxpayer 15th of the succeeding month
GSTR 3 Monthly return (inward supplies + outward supplies) 20th of the succeeding month
GSTR 4 Quarterly return for compounding Taxpayer 18th of next month from end of quarter
GSTR 5 Periodic Return by Non-Resident Taxpayer Last day of registration
GSTR 6 Return for Input Service Distributor (ISD) 15th of succeeding month
GSTR 7 Return for Tax Deducted at Source 10th of succeeding month
GSTR 8 Annual Return By 31st December of next FY

S.No GST input 1st utilisation against 2nd utilization Against 3rd utilization Against Further balance
1 IGST IGST output CGST SGST Carry over to next period and against adjust the same manner
2 CGST CGST IGST Not applicable Carry over to next period and against adjust the same manner
3 SGST SGST IGST Not applicable Carry over to next period and against adjust the same manner

The return (including NIL return) filing formalities may increase by manifolds as far as periodicity, number of forms and multiplicity of compliances are concerned.
Compliance requirement may further become cumbersome as invoice level details are expected to be provided in the returns. For example, a service taxpayer, covered by the Central Service Tax legislation, is currently required to file half yearly return and within the GST regime, same Service Tax assessee might be required to file as many as 61 returns (5 returns per month i.e. GSTR 1, 2,3,6,7 and GSTR 8 annual return).

Rectification of Errors in returns

Rectification of errors for any omission or incorrect particulars (other than as a result of audit, inspection or enforcement activity by the tax authorities) would be allowed in the return period in which such omission/incorrect particulars to specific restriction such as rectification / omission may not be allowed after filing of the return for the month of November following the end of the FY etc.

On the IT front, all stakeholders had agreed for a common PAN-based taxpayer ID, a common return, and a common challan for tax payment and therefore a common portal providing three core services (registration, returns and payments) would ease compliance.

Union Cabinet has approved a proposal to set up the SPV, namely GSTN, as an exclusive nodal agency for enabling IT infrastructure for smooth introduction of GST.

GST RATES
• Some sectors will be differently affected based on the nature of activities.
• Land, Real Estate, Renting this sector is heavily under multiple tax burden, stamp duty and Service Tax and are under litigation presently. as well as works contract tax
• Railways
• Following issues need consideration
• High Speed Diesel (HSD)/Light Diesel Oil (LDO) consumed, Railway locos/coaches being used in-house (captive consumption), overhead electric wires and other related equipments may be covered under definition of Capital Goods for allowing Cenvat Credit.
• Long term leases, cleaning at Railways Stations, Railways tracks etc. may be included in Sanitation Conservancy and spared from levy of GST, Indian Railways may be exempt from payment of GST under reverse charge mechanism / TDS provision.
• Banking & Financial Services
• Financial services are exempt from levy of VAT / GST in most of the countries.
• Leasing companies are burdened with both taxes- VAT as well as Service Tax.
• Pharma and FMCG-Supply to self & cash outflow problems. The tax trigger under GST is the 'supply' of goods and services. The draft model GST law, which is in wide circulation, has defined 'supply' to also include supply made without a consideration. "This significantly widens the scope of the levy.
• SGST cannot be set off pan-India. "As regards, CGST set-off, there is no express clarity.
• Loss Of Input Tax Credit-"The GST IT infrastructure is to be set up such that there will be a matching of the input tax credit claimed by a recipient and the tax paid by the supplier. Accordingly, if a company's vendor is tax non-compliant and blacklisted, the company as a recipient of goods could also be impacted and denied input tax credit," says Shah.
• Compliance burden as regards filing of returns has also increased substantially -in terms of the periodicity of returns, number of return formats and level of details required in these returns., if back-end operations are not planned well, the taxpayer will run the risk of a credit accumulation in one state and a cash outgo in another,"
• Determining Place Of Supply-If a company organizes a business conference in Delhi (where it is not located), if the hotel treats it as a `local supply' in Delhi and charges Delhi GST, how will this company claim credit?
• Thus given the drastic change and increase in number of compliances, it is advisable to work towards analysing the impact of the GST on business operations to ascertain the impact on tax, finance, working capital, contracts, operations and compliances to anticipate the changes in advance and gear up accordingly.

SCAM
SEBI has passed recovery proceedings and for seizing all Bank, Demat, Deposits, Assets of PACL group (multi level marketing for collection of deposits from Public)to recover and repay Public deposits collected to the tune of Rs 47,000 crores !!!
All the Directors have been arrested

..

RBI

The Reserve Bank of India today released the final guidelines on computing interest rates on advances based on the marginal cost of funds. The guidelines come into effect from April 1, 2016. Apart from helping improve the transmission of policy rates into the lending rates of banks, these measures are expected to improve transparency

RBI-BANK STATUTORY AUDIT

The government is likely to empower the proposed Bank Board Bureau to select audit firms for public sector banks as part of its larger initiative to strengthen their corporate governance practices. At present, individual public sector banks (PSBs) choose their auditors themselves from a list of approved firms by the Reserve Bank of India (RBI).

RBI-MOBILE BANKING
Given the high mobile density in the country, the policy focus of RBI has been to encourage banks to leverage on the mobile channel for widening the access to banking services.
SDR-
yet another three-letter acronym has the potential to malign the RBI's reputation and halt all the good that GST would bring to India's GDP. Possibly by March 2017, investors will be dreading its impact on corporate earnings rather than counting any GST goodies.

SDR, or Strategic Debt Restructuring, was a scheme meant to help banks swap unpaid debt for majority control in a company. But banks in India have used it to their advantage to camouflage unrecoverable debt.
All SDR accounts put together amount to Rs 641 billion of loans. This is a little more than 1% of total loans in the banking sector and close to 1% of India's GDP.

The RBI has set a deadline of March 2017 for banks to acknowledge such bad loans and provide for losses. This means several companies will lose their controlling stake to their bankers, and the banks will have to take a big cut in profits.

FCRA-
All FCRA services are made online .Applications for registration, prior permission and renewal of registration under FCRA, 2010 will be accepted online. All documents with the application will be uploaded online.Fee for various services will be paid through payment gateway. Certificate of registration/ renewal and grant of prior permission will be sent online and digitally signed.All FCRA designated bank accounts and Utilisation Accounts will have to be brought on the online platform of Public Finance Management Service (PFMS) of Controller General of Accounts, Ministry of Finance.

 
LABOUR
 BONUS The Lok Sabha on 22.12.2015 passed a bill allowing doubling of wage ceiling for calculating bonus to Rs 7,000 per month for factory workers with establishments with 20 or more workers, with the benefits being applicable retrospectively from April 2014,raising of eligibility limit for payment of bonus from a salary of Rs 10,000 per month to Rs 21,000.

PLAN TO CUT SERVICE PERIOD FOR GRATUITY
In a move that could alter the dynamics of the formal employment market, the government has proposed making gratuity benefits portable for employees moving from one workplace to another, irrespective of the tenure of their stint. Presently, employees in firms with 10 or more employees are eligible for gratuity benefits of up to Rs. 10 lakh (no income tax) but they can only claim these benefits after a minimum of five years of continuous service in the same organisation.
EMPLOYERS CAN CLAIM TAX DEDUCTION FOR PF PAYMENTS
MADE BEFORE DATE OF FILING RETURNS

FUTURE TRENDS AND THEIR IMPACT
 RECUITMENT & EMPLOYABILITY
 Develop new hiring practices to recruit for the new nontraditional IT roles,
 Recruiters should prepare for a dearth of candidates
 Individuals who are in low-skill roles in services industries e.g., bank tellers, grocery clerks and delivery drivers, must consider retraining for other service skills that cannot yet be digitized
 Plumbers, electricians and mechanics to remain employable.
 Government, in collaboration with business industries and education institutions, should define the job roles, skills and competencies needed in the next five to 10 years and initiate a road map to prepare for the next generation of employed workers.
 Key Findings:
 Advances in big data and distributed computing have rekindled interest and investment in AI.
 Oxford University estimated that, in the near future, AI could take over nearly half of all jobs in the U.S.
 In accordance with Moore's law, the computing power of the world's fastest supercomputers has increased by a factor of more than 400,000 in 10 years, from 131 gigaflops in 1993 to 54.9 petaflops
 The world economy has become ripe for digital disruption, as evidenced by global marketplace
 companies (such as Uber and Airbnb) that are disrupting ground transportation and hotels,
 Meanwhile, the wealth creation upside of success in such models — valuations in the tens to hundreds of billions of dollars for companies less than five years old — represents an irresistible attraction for capital investment.By 2017, more than 80% of venture capital investment funds will use applied AI to model and evaluate investment opportunities.

 ■
 Marketing leaders:
 Shift focus from promoting and distributing existing offerings to sensing and anticipating technology
 ■
 Business leaders:
 Embrace the use of data and analytics to anticipate disruption and analyze responsive scenarios.
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 IT leaders:
 Elevate the detection and analysis of business disruption to the top of your list of objectives for sourcing and evaluating big data investments and programs.
 ■
 Investors and entrepreneurs:
 Make the potential of AI to identify and design new business opportunities a major factor in your investment plans.

 Strategic Planning Assumption:
 By 2018, the total cost of ownership for business operations will be reduced by 30% through the use of smart machines and industrialized services.
 The consumer's need to get faster, cheaper, better products and services in a mode that supports any time, any place, any channel is fueling the digital business revolution. And the digital revolution is predicated on velocity. The absolute obsession is speed, Consumers want responses (information, context, insights) regarding business transactions at the speed of digital transactions, which is not a human physical capability.
 The epicenter and driver of business decisions has shifted from an enterprise-centric focus to a consumer focus.
 Business processes and the entire value chain of business operations will shift from a labor driven and technology-enabled paradigm to a digital-driven and human-enabled model.
 smart machines will displace complacency and inefficiency and add tremendous velocity to business operations.
 With consumers' preference for using the Internet and mobile services to drive business efficiencies and optimize time management, every industry is striving to improve customer experiences by simplifying, automating and making more-intelligent end-to-end processes,while minimizing manual interventions and enabling the consumer to self-serve.
 Smart machines are here
 The current leaders in a given industry will not necessarily remain there. They need to identify potential disruptors and stay ahead of the game. Physical or knowledge assets will not be enough to "milk the cash cow" of products and services for the next five years.
 New unusual suspects (enterprises) will proliferate to bring new products and services to market and quickly grab "mind share" or market share.
 consumption "portions" will be more "bite-sized" or "time-sliced." For example, compare the business model of renting a vehicle from Hertz by the day with renting a vehicle from Zipcar by the hour.
 The buyer's expectations and minimal-level bar will eventually shift from "paying for effort," which is input based (number of labor hours, cost of materials or parts), to "paying for outcomes" (which is a result-driven metric).
 more than 40 vendors will have commercially available managed services offerings that leverage smart machines and industrialized services.
 more than $20 billion of business-outcome-managed services signed contracts will be in the marketplace (which leverage smart machines and industrialized services).
 Proactively ask yourself two key questions: How will my enterprise create new disruptors in our industry? How will we respond to business disruptors (at digital speed)?
 Sourcing teams, enterprise architects and digital business teams need to work together to address the three key layers of run the business, grow the business and transform the business.
 This will be done at different volume levels and velocities. In the run-the-business layer, it's volume and precision (i.e., being on time, on budget and on scope). In the grow-and-transform layers, it's about incremental innovation and big changes (i.e., transformational shifts). This is based on fast failures, rather than precision and being on time, on budget and on scope.
 By 2020, developed world life expectancy will increase by half a
 year, due to the widespread adoption of wireless health monitoring technology.
 Extending the average life expectancy for people has revolved around three major eras in technology: biological and non biological augmentation and replacement (e.g., pacemakers); and genomelectronic (2015 and beyond). The genomelectronic era will feature simultaneous innovations in genome therapies alongside the integration of the Nexus of Forces (1) into medical and lifestyle components. They will operate across the spectrum of prevention, intervention and monitoring. The electronic innovations will be mobile, networked to the Internet, powered by the cloud, and linked to extensive information, sensor data and social context sources.
 In this prevention area, solutions combining inexpensive connected devices and personalized analytics could attack two leading killers — cardiovascular disease and diabetes.
 In 2020, 30% of deaths in the developed world can be postponed by health-monitoring solutions.
 The United Nations predicts that lifespans in the developed world will increase to 79 years by 2020.
 Wearable monitors hold huge promise. Today, a simple wristband can collect data on heartbeat,temperature and a number of environmental factors. Wireless heart-monitoring patches, smart
 shirts and sensors in accessories promise more accuracy, choice and comfort to wearers.
 We expect data from remote monitoring devices to provide continued access from patient to medical practitioners. Diabetics' blood glucose will be automatically monitored and levels continually adjusted. Data security will be important, as will data management and privacy, and will lead to new regulations and best practices.
 We expect health monitoring to exceed a $40 billion market by 2020 and to deliver its half-year increase in life span.
 By 2018, 200 million people will use wearable devices that measure their heart rates.
 30% of corporate wellness programs will capture biometric data about employees.
 Strategic Planning Assumption:
 more than $2 billion in online shopping will be performed exclusively by mobile digital assistants.
 Key Findings:
 Promising mobile digital assistant technologies, such as Google Now, Siri and Cortana, are already tapping into preferences and explicit context like spoken questions and commands, time and place.
 They are connecting pieces of need/want assessment, information gathering and evaluation, all elements along a buying process sans autonomous purchasing.
 mobile digital assistants will have taken on mundane tactical processes such as filling out name, address, credit card information (no one wants to keep doing those things over and over).
 Fixed events such as grocery replenishment (buying paper towels every three weeks or getting new filter for ice maker) will be common and will build trust for these types of assistants to take on more.
 slightly more complex purchase decisions, such as buying back-to-school backpacks (something superhero and in stock) and chained events — such as scheduling a highly rated, date-type movie along with dinner and car pickup on an anniversary — will be easily achievable.
 Yearly autonomous mobile assistant purchasing will reach $2 billion annually, representing about 2.5% of mobile users trusting assistants with $50/year. Digital assistants will be on multiple platforms;
 However, mobile will be the most accessible, adopted device for digital assistants and will be the "killer application"
 With almost three billion people worldwide now having gone online, the drivers are clear. augmented with those aspects of our
 personality that compel us to buy, mobile digital assistants (with a sizable budget) will begin to off-load areas of our decision making and make purchases on our behalf, ranging from the tactical to the strategic.
 and the digital assistant will be a top tool to perform the task. With the ability to connect, gather,sort and process information better than the individual, digital assistant decision making will start
 freeing up more strategic life events, taking on assistant roles, such as those of the travel agent, the financial advisor, the nurse, the attorney, the contractor, or the "wing man."
 Businesses will need to take a fresh look on how to influence, market and sell to these key decision makers.
 Deliberately unstable processes will mandate a drastic shift in the ability of an enterprise and its people to change in a more fluid manner. The ability to change faster will leverage the concepts of organizational liquidity. This holistic approach, blending business model, processes, technology and people will fuel digital business success.

 The Bottom Line:

 To be successful in digital business transformation, innovate your organization's business model, beginning with a new customer interaction style, develop organizational liquidity and engage in organizational change approaches to enable key super maneuverable processes that adapt to key business moments. The organizations that do so will conquer sustainable innovation and differentiation.

 Near-Term Flag:
 Create an agile, responsive workforce that is accountable, responsive and supports your organizational liquidity.
 CEO Survey shows revenue growth as the most pressing strategic mandate in business today. When asked for the top priority in technology-related business capabilities to support this growth agenda, CEOs identified digital marketing, followed closely by customer experience.
 E Consultancy study, 89% of companies see a great customer experience as a vital requirement for driving brand loyalty.
 Near-Term Flags:
 nearly 90% of consumer product companies will have appointed a chief customer officer.
 Durable goods manufacturers are increasingly looking toward technologies that enable a shift from offering "configurable" products to more-personalized products that are tailored toward diverse consumer needs.
 Manufacturers are increasingly leveraging 3DP technologies to enable new design possibilities.
 nearly 50% of discrete manufacturers will use 3DP to produce parts for products they sell or service.by 2018, the 3DP market will grow to more than $13.4 billion.
 E-tailers are poised to add portal-based, customer-facing personalization capabilities via digital business channels. To support this transition, IT and business groups are developing stronger back-office capabilities that support 3D modeling and core product
 life cycle management
 (PLM) systems that interface with CRM, ERP and manufacturing system technologies.
 Market Implications:
 3DP technology is a game changer. This is especially the case for the production of concepts, first-generation products and low-volume manufacturing runs. The advances in 3DP technology and the ubiquity of 3DP services during the next few years will create a new democratized manufacturing ecosystem in which the design and delivery process can be made extremely flexible. As a result, virtually any company can create, engage and launch a prototype or sell a product that uses an ETO process.
 Major brands have either initiated pilots or created partnerships in the digital supply chain to offer products tailored to individual consumers' facial profiles and stylistic preferences ■Helmets, boots, shoes — custom designs and fit
 ■Bicycle frames, skis, skateboards, hunting and sporting firearms designed specifically for customers' body types, height, weight, inseams, grips, etc.■ Fashion, handbags, precious metal jewelry printed on-demand a variety of materials ■Toys — made to order, customized, "U design it," etc.■ Home furniture and décor — wall panels, picture frames and lighting fixtures Almost every durable good category will see a surge in 3DP-enabled personalization, as manufacturers develop capabilities for bringing the consumer closer to the design experience.
 Numerous opportunities are associated with delivering personalized products:
 Socially engaged design innovation:
 New service and support models:
 Brand engagement and loyalty:
 Reduction in inventory in the supply chain:
 Novel customer experiences.

 Near-Term Flags:
 there will be an increase in the number of offers from retailers focused on customer location and length of time in store.
 By 2017, seven of the 10 largest retailers will use indoor positioning systems, combined with mobile apps, to aid shoppers in quickly locating departments and products.
 Recommendations:
 two-thirds of today's consumers report engaging in shopping activities on mobile device.
 As a result, retailers' opportunities to access and interact with consumers on their own devices has also increased. An opportunity to
 Improve sales, margins, satisfaction and frequency of visits in store has arisen though the use of indoor positioning systems and targeted offers. By combining real-time, contextual information and
 Advanced analytics, retailers can determine the "best offer" to deliver in real time to the customer. For example, a retailer may use consumers' locations shared from their mobile phones and/or social
 Network activities while in a shopping mall to create contextually relevant offers for nearby stores.
 Combine this with indoor positioning systems, and customers that accept such offers could be directed in real time not only to the store, but to the specific sale items themselves

Trends to looks out for in 2016!

Innovation will focus on impact and relevance
Ultimately, all successful innovations make a positive difference to the user and enhance his experience... And this will happen when businesses focus on their relevance to the customer's life and keep in mind their current challenges and location while building products and services.

Work, love, life, and spirituality will come together
Entrepreneurship will not just impact the consumer's life, but also the entrepreneur's. More and more, the world will see an emergence of entrepreneurs who will seamlessly blend their passions and causes with work and profitability.

Mobile use will grow and sustain businesses
The app rage will continue. Businesses will want a presence on the gadget the consumer always has on him - the mobile phone. While some apps will just be me-too aggregators (like home delivery apps), others will dramatically change the way we receive and send information (like news apps).

Entrepreneurship will become more inclusive
Entrepreneurship has impacted women the most. It's given them more opportunities to work flexi hours and combine their hobbies into businesses (and without too much capital). Whether they will start platforms for women's issues or simply showcase their expertise, the voices of women in the startup space will only grow louder.

Profitability will be key to growth
The enterprises that will survive and thrive will be those who are not just in the green but have enough potential to sustain themselves for the next 5-10 years. Investors will look closely at business models. And more often than not, they will back those who are already profitable and can show clear projections for the future.

Brands will stay closely connected to customers
Businesess that will stand the test of time are those that can get into the shoes of their customers: those that understand the customer's immediate needs and can even predict their future needs. A lot of business is demand that is created, but even this demand comes from having a pulse on the customer's life and knowing what he will or will not pay for.

Scalability through the franchise model will continue
A lot of scalability will depend on having robust franchise models in place. Collaborations across districts, cities and countries will allow brands to spread their reach far and wide. Technology has helped put more quality control systems in place, expediting expansion for many enterprises.

Businesses will become more socially responsible
From incorporating ethical practices into manufacturing processes and ensuring a healthy work-life balance to becoming more inclusive and empowering customers in their choices - entrepreneurship will become more socially responsible; the focus will be profit but also sustainability.

Entrepreneurship will emerge from a 'limitless mindset'
Undoubtedly true... With everything going for startups - technology, low-cost marketing strategies, easy access to consumers through mobiles, and direct links to investors through websites - the new-age entrepreneur has very little to worry about. All he needs is a limitless mindset, one that isn't afraid to experiment with ideas and scale as high as necessary.

Keep your thoughts positive, because your thoughts become your words.
Keep your words positive, because your words become your behavior
Keep your behavior positive, as your behavior becomes your habit
Keep your habits positive, because your habits become your values
Keep your values positive, because your values become your destiny……….
Mahatma Gandhi

HAPPY SANKRANTI

THE CONTENTS OF THE NEWSLETTER ARE COMPILATIONS OF NEWS AND OPINIONS AS EXPRESSED IN VARIOUS JOURNALS, NEWSPAPERS AND ARTICLES AND THE ACCURACY OF THE CONTENT IS NOT THE RESPONSIBILITY OF THIS DOCUMENT