Question: Despite India's economy expanding at a commendable rate relative to other nations, could this exacerbate the divide between rural and urban regions?

ANSWER: A recent report for the April-June period indicates a significant increase in rural demand for goods and services, narrowing the gap between rural and urban populations. With the monsoon season underway, it is anticipated that rural demand might exceed urban demand. Consequently, the FMCG sector is focusing its sales and marketing strategies on the rural market. It is projected that rural demand will outpace urban demand in the second quarter, given a normal monsoon forecast. Additionally, internet usage in rural areas has risen, with more businesses receiving online orders and using UPI for transactions, showcasing rapid digital adoption in the informal sector. Another positive trend is that 54% of proprietary establishments in rural manufacturing are led by women entrepreneurs. By March 31, 2023, the number of establishments in the rural economy's unincorporated sector reached 65 million, with over 40% involved in retail trade and apparel manufacturing. Capital investment in this sector has also shown promising growth, indicating a shrinking gap between rural and urban economies and reduced income disparities.

Question: I understand that a new criminal procedure law has been enacted in India this month. Will this law recognize digital records, which are now prevalent?

ANSWER: Effective July 1, the outdated Indian Penal Code and the Code of Criminal Procedure have been superseded by new legislation. Courts will now accept electronic or digital records as primary evidence if stored appropriately. These records will have the same legal standing as traditional documents, subject to specific conditions outlined in the law. The new law also allows for the electronic deposition of witnesses, accused persons, experts, and victims, reducing logistical challenges. Any print or copy of an electronic record is admissible in legal proceedings without the original, provided the device was regularly used by the person in lawful control. However, illegally intercepted conversations or videos will not be admissible. Digitally recorded conversations must comply with conditions set by the Indian Telegraph Act, which prohibits illegal phone tapping. The new legislation will apply only to cases filed after July 1, 2024.

Question: My son, a practicing Chartered Accountant in India, is required to attend courses organized by the Institute of Chartered Accountants for continuous learning. He mentions another training course he may need to take. What is the purpose of this?

ANSWER: India has established a new regulatory body, the National Financial Reporting Authority (NFRA), responsible for overseeing publicly listed companies. NFRA, in collaboration with the Indian Institute of Corporate Affairs (IICA), has introduced training modules for accountants and auditors of 'public interest companies', including listed and large companies. The aim is to ensure these professionals are well-prepared to handle financial matters in companies with numerous shareholders. NFRA and IICA plan to conduct nine-month courses requiring two to three days of weekly attendance. These courses will be developed with the assistance of senior chartered accountants, industry representatives, and international experts.

H. P. Ranina is a practicing lawyer specializing in corporate and tax laws of India.