<ul><li>A series of political innovations will not just help sustainable economics and new age digital brands foster in India but they will ensure a sustainable model of policymaking is possible.</li><li>Artificial Intelligence (AI) and Machine Learning (ML) can be adopted to provide non-partisan data-centric governance recommendations for Parliamentary Standing Committees.</li><li>Political start-ups should make their constituents the people they serve rather than political industrial complexes that cater to a select coterie. </li></ul>Rains have taken the financial capital by storm only to remind us of the historic deluge in 2005, but our national capital is yet to convene for the monsoon session of Parliament. It is expected to begin from September 14 (in order for the Parliament to be in compliance with Article 85 of the Constitution, the Parliament needs to convene before 23 September for the monsoon session). The COVID-19 pandemic has made technology indispensable. From leveraging technology to drive businesses, this pandemic has guided us to use technology to sustain businesses. This shift towards an increased reliance towards tech-enabled business models is in sync with the digitisation push of the government. Policymaking go virtual or “phygital” A ‘Digital India’ is emerging that is creating records in uncharted territories. Though these digital feats are another feather in India’s decorated cap, these digital realities create their own rules as public policy is not clearly defined when it comes to technology, digital geographies and data privacy. With these dualities in sight I believe that a series of political innovations will not just help sustainable economics and new age digital brands foster in India but they will ensure a sustainable model of policymaking is possible – one that is sanitized, secure and accountable (even in the time between two elections). Technology can help manage constituencies better Between Prime Minister Narendra Modi’s official app to Aarogya Setu (the government’s COVID-19 tracker) to an app dedicated to farmers and many more such platforms, there is enough data on the citizens, which is at the government’s disposal. This becomes an empowering force that elected representatives (and other relevant institutions) can use to understand constituents’ needs and preferences, just the way businesses use data to understand the customers’ needs. Such digital solutions have the capacity to augment effective resource allocation, ensure compliance and use real-time constituency data to allocate need-based budgets. It has to be non-partisan Artificial Intelligence (AI) and Machine Learning (ML) can be adopted to provide non-partisan data-centric governance recommendations for Parliamentary Standing Committees, voter turnouts percentages for political parties and other behavioural trends for the Members of Parliament. This will not only help in efficient impact assessment and analysing constituency data but it will also introduce digital checks to the flow of funds – thereby making public servants accountable to the people of Bharat. While the administration can use such information to target solutions, such technology should not be under the control of any single division of the Government in order to ensure that there is a maker-checker mechanism in place. This platform should be non-partisan, though rooted in our cultural ideals and the teaching of the constitution. Parliamentarians working from home can stay connected with their constituents With the pandemic forcing politicians to work from home, adoption of such tech-enabled governance measures can create alternative feedback mechanisms that will allow leaders to stay in touch with constituents. This, in turn, will not just assist new age voters to retain their faith in the democratic ideals of India (and will drive them to actively participate in nation-building), but will also lay the foundation stone for making policy-making “phygital”. Here's what policy-makers can learn from start-ups At a time when India needs clarity more than ever, I believe that policy-making must be rooted in (citizens) data and healthy competition. This competition can be ushered by the growth of political start-ups that can foster innovation. These political start-ups should make their constituents the people they serve rather than political industrial complexes that cater to a select coterie. You might be thinking that I am talking about the cropping up of a new set-up. Not necessarily. Political intrapreneurs within established political brands can spearhead this by cultivating a culture that is sowing the roots of tomorrow and is action oriented (not just driven by slogans, management skills and digital marketing). These political start-ups might be tempted to play the valuations game (in this case the art of corporate donations funding elections); but should refrain from doing so. A stronger collaboration between the Centre and the States along with capitalising on the vibrant innovative start-up ecosystem that is brewing in India can create sufficient political capital for the future. These political innovations will ensure that India can thrive in the digital economy and will help it to fortify itself from the bear market going forward. And along the way make sure its digital ecosystem is not just tech-enabled, but also accountable. <meta content="cms.next" name="cmsei" />

There is enough data available to make policies effective and politics cleaner ⁠— and India's vibrant startups can help

<ul><li>Over $5.2 billion has been invested in creating social impact since 2010 but that number can grow ten-fold, the authors argue.</li><li>A number of valuable projects for SRI investing can potentially be sourced in the context of the CSR legislation in India. </li><li>Therefore, there is enough reason for Finance Minister Nirmala Sitharaman to encourage investment that is not just looking for profit, but also looking to cause a change.</li></ul>Socially responsible investing (SRI) is an investment strategy that aims to generate positive and measurable social and environmental impact in addition to generating a healthy internal rate of return (IRR) for its investors by focusing on opportunities that help address the socio-economic challenges that communities in India face. SRI is finding its ground in India. Over $5.2 billion has been invested in creating social impact since 2010, according to a McKinsey report. That number can easily grow ten-fold by 2025 given the sheer scale of untapped opportunities in the country. And, that is why Finance Minister Nirmala Sitharaman must incentivise those looking to pump in money not just for profit, but also to create social change. 
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 Socially-responsible investing is quintessentially ‘Indian’ A report by cKinetics indicates that funds deployed towards SRI-aligned strategies by international investors in India have increased by 4% since 2017 and SRI assets managed by domestic asset managers have grown by 70%. The increased adoption of SRI will help to institutionalise a culture of giving that is already rooted in local traditions and culture. This synthesis of new investing strategies and traditions offers Indian financial services providers a significant opportunity to step up SRI; helpfully, increasing numbers of businesses that require investment are also recognising the growing awareness and interest that stakeholders, including critically many customers, especially millennials, have in sustainable growth practices. It’s ‘for profit’ and ‘for change’ India faces large socio-economic challenges, including urban and rural poverty, unemployment, a water crisis with demand outstripping supply, overflowing landfills in megacities and increasing income inequality. However, the SRI funds that have been created, both in number and in value, are relatively small compared to the size of these problems. Two of the early entrants operating in India for the past two decades, Acumen and Aavishkaar, between them have deployed over $300 million. An analysis of deals between 2010 and 2015 suggests that investments during this period were able to achieve a gross internal rate of return (IRR) of 11% on exit and the top one-third of investments achieved a median IRR of 34%. As SRI expands in India and gains in maturity and sophistication, we believe the range of these IRR numbers can be easily maintained, giving a substantial thrust to projects that deliver good social and environmental outcomes and ultimately combine profit with purpose. CSR funds can be deployed in the right places, with the right people A number of valuable projects for SRI investing can potentially be sourced in the context of the CSR legislation in India. This will, however, require a clear definition and taxonomy⁠— simply put, classification⁠— of what outcomes such investments are expected to deliver and what kinds of projects would qualify for such support. If handled well, this could yield significant new funds to support a large number of social entrepreneurs, and address the biggest challenge India faces today on the economic front - the creation of meaningful jobs for the million young people entering the workforce every month. Precedents on nomenclature and taxonomy are available from the way in which the Green bond market has evolved overseas, especially in the European Union. An idea for Budget 2020 Given the government’s willingness to course correct on the CSR legislation, reflected for instance in its decision to allow R&amp;D activities funded by corporates within universities, to qualify as CSR spending, a new dimension could be added by allowing SRI to also qualify as CSR spending. Moreover, where funds are loaned, every rupee of such lending can lever significantly more funds through additional borrowings. Ways to extend this opportunity could include allowing funds to be raised on the proposed new social stock exchanges that the Finance Minister outlined in the last budget, and facilitating the entry of foreign capital in this space. With some innovative thinking and by employing creative financing mechanisms such as crowdfunding, we believe a whole new paradigm might emerge that draws substantial new funding into the socially responsible investing space. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/union-budget-2020-300-items-may-see-customs-duty-hike/articleshow/73316675.cms">Union Budget 2020: 300 items may see customs duty hike</a> <a href="https://www.businessinsider.in/budget/news/union-budget-2020-from-reducing-income-tax-slab-to-increasing-health-budget-these-are-some-suggestions-that-india-has-for-finance-minister/articleshow/73269766.cms">India's Prime Minister asked for budget 2020 suggestions — this is what some of the social media influencers had to say</a> <meta content="cms.next" name="cmsei" />

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There is enough data available to make policies effective and politics cleaner ⁠— and India's vibrant startups can help

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'Budget 2020 must make way for socially-responsible investing in India'⁠— here's why

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