VOL XXV, ISSUE 15

15 August 2024

2.  DGFT Trade Notice Trade Notice No. 11/2024-25 dated 2nd August 2024: Harmonisation of Export Policy with ITC(HS) Codes for Chapters 40 to 98

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, is in the process of harmonising the existing Schedule-II (Export Policy) with the 8-digit ITC(HS) codes. This initiative aims to replace the description-based Export Policy, streamlining export control and facilitation, and providing greater clarity for all stakeholders.

Key Points:

• The ITC(HS)-based Schedule-II (Export Policy) for Chapters 01 to 39 was notified on 13th February 2024.

• Current Focus: The DGFT has now prepared the draft Schedule-II (Export Policy) aligning ITC(HS) codes for Chapters 40 to 98, which is available for review.

• This harmonisation is a concordance exercise with no substantive changes to the existing Export Policy.

• Feedback Deadline: Stakeholders are invited to provide comments by 11th August 2024 via email to export-dgft@nic.in.

After the review period, and subject to feedback, Chapters 40 to 98 of the Schedule-II (Export Policy) will be re-notified.

Members are encouraged to review the draft and provide their input within the stipulated timeline. For detailed DGFT Trade Notice Trade Notice No. 11/2024-25 dated 2nd August 2024, members are advised to refer to the official DGFT web sites. 

3.Ministry of Corporate Affairs Notification no: G.S.R. 475(E) Date: 5th August 2024 on Limited Liability Partnership (Amendment) Rules, 2024

The Ministry of Corporate Affairs has issued amendments to the Limited Liability Partnership (LLP) Rules, 2009, under the Limited Liability Partnership Act, 2008. The updated rules will take effect from 27th August 2024.

Key Amendments:

• Insertion of "Centre for Processing Accelerated Corporate Exit":

1. Rule 37, Sub-rule (1):

2. Clause (b): Insert "the Centre for Processing Accelerated Corporate Exit" after "Registrar."

3. First Proviso: Insert "the Centre for Processing Accelerated Corporate Exit" after "Registrar."

4. New Explanation: Defines "the Centre for Processing Accelerated Corporate Exit" as per the notification S.O. 1269(E), dated 17th March 2023.

• Sub-rule (3) and (4) Amendments:

1. Insert "or the Centre for Processing Accelerated Corporate Exit, as the case may be" after "Registrar."

These amendments integrate the Centre for Processing Accelerated Corporate Exit into the LLP rules, facilitating smoother corporate exit processes.

For detailed Ministry of Corporate Affairs Notification, no: G.S.R. 475(E) Date: 5th August 2024 on Limited Liability Partnership (Amendment) Rules, 2024, members are advised to refer to the official Ministry of Corporate Affairs web sites. 

4. DGFT Public Notice No. 17/2024-25 dated August 14, 2024: DGFT Amends Delegation of Powers for SCOMET Authorizations

The Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 17/2024-25 dated August 14, 2024, announcing amendments to Para 10.06(III) of the Handbook of Procedures (HBP) 2023. This change pertains to the delegation of powers for the approval of authorizations under the Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) list when all concerned agencies have provided their comments, views, or No Objection Certificates (NOCs) with no divergence.

Key Update:

• Previously, such authorizations required the approval of the Chairman of the Inter-Ministerial Working Group (IMWG).

• The revised procedure now allows for the approval by the Chairman, IMWG, or any officer nominated by the Chairman/DGFT, provided they are at least of the rank of Deputy Director General of Foreign Trade or Under Secretary.

• The cases will still be presented to the IMWG in its subsequent meeting for ex-post facto approval.

This amendment streamlines the authorization process for SCOMET cases, ensuring more flexibility and efficiency in decision-making.

For detailed DGFT Public Notice No. 17/2024-25 dated August 14, 2024, members are advised to refer to the official DGFT web sites. 

5. RBI Circular No.: RBI/2024-25/60 dated 8th August 2024: Enhanced Reporting Frequency of Credit Information by Financial Institutions

The Reserve Bank of India (RBI) has issued new guidelines to improve the timeliness of credit information reporting by Credit Institutions (CIs) to Credit Information Companies (CICs). The key updates are as follows:

• Revised Reporting Frequency:

1. Credit Institutions (CIs) are now required to update and submit credit information to CICs on a fortnightly basis (as of the 15th and last day of each month).

2. The information must be submitted within seven (7) calendar days of the reporting fortnight.

• Faster Data Processing by CICs:

1. CICs must now ingest credit information received from CIs within five (5) calendar days of receipt, reduced from the previous seven days.

• Compliance Monitoring:

1. CICs are required to report non-compliant CIs to the RBI's Department of Supervision on a half-yearly basis (as of March 31 and September 30).

• Implementation Deadline:

1. These instructions are to be implemented by January 1, 2025. However, institutions are encouraged to adopt these measures sooner.

• Penalties for Non-Compliance:

1. Any CI or CIC failing to adhere to these guidelines will face penal action as per the Credit Information Companies (Regulation) Act, 2005 (CICRA, 2005).

This move is intended to ensure that Credit Information Reports (CIRs) provided by CICs are more current, aiding lenders in making timely and informed credit decisions. For details on RBI Circular No.: RBI/2024-25/60 dated 8th August 2024, members are advised to refer to the official RBI web sites. 

6. CBIC Notification No. 16/2024-Central Tax dated August 6, 2024: CBIC Issues Notification on Effective Dates for CGST Act Amendments

The Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 16/2024-Central Tax dated August 6, 2024, to announce the effective dates for specific amendments made to the Central Goods and Services Tax (CGST) Act, 2017, as introduced in the Finance Act, 2024.

 Key Amendments and Effective Dates:

1. Input Service Distributor (ISD) Amendments:

• The revised definition of Input Service Distributor (ISD) in Section 2(61) and changes in the manner of credit distribution by ISD in Section 20 will be effective from April 1, 2025.

• Businesses will need to ensure compliance by identifying services that must be routed through ISD and determining the state(s) where ISD registration is necessary.

• Vendors should be informed in advance to adjust invoicing processes, accordingly, starting from April 1, 2025.

2. Penalty for Non-Registration of Packing Machines:

• A new penalty provision for manufacturers of pan masala, chewing tobacco, and other tobacco-related products, regarding the non-registration of packing machines, will come into effect on October 1, 2024.

The government has also amended ISD rules via Notification No. 12/2024-CT dated July 10, 2024, which are expected to be enforced from April 1, 2025, aligning with the new ISD provisions.

For detailed CBIC Notification No. 16/2024-Central Tax dated August 6, 2024, members are advised to refer to the official CBIC web sites.

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         INDUSTRY  SCAN                                                                             

General

IIT Guwahati develops ‘LEAP’: Advanced Machine Learning Framework for the Semiconductor Industry

Indian Institute of Technology Guwahati researchers have made significant advancements in the field of Electronic Design Automation (EDA) with the development of an innovative machine learning (ML) framework named ‘LEAP’. This cutting-edge solution enhances the design process of Integrated Circuits (ICs), a critical component in the $600 billion semiconductor industry that powers modern electronic devices. The creation of ICs relies heavily on EDA software, which transforms high-level designs into a manufacturing format known as Graphic Design System (GDS). However, designing ICs involves navigating complex problems that can be challenging to solve. Traditional methods often use heuristic techniques—quick problem-solving strategies that find acceptable solutions without necessarily achieving perfection. While these approaches help balance design quality and runtime, they often yield less-than-ideal results. To address these challenges, Prof. Chandan Karfa, Associate Professor and Dr. Sukanta Bhattacharjee, Assistant Professor, Department of Computer Science and Engineering, IIT Guwahati along with their BTech students Chandrabhushan Reddy Chigarapally, Harshwardhan Nitin Bhakkad, have leveraged machine learning to improve efficiency in IC design.

Source: By Bikas Singh, https://economictimes.indiatimes.com/, August 08, 2024

Electronics, mechanical engineers see rise in demand driven by auto industry

Demand for professionals in electronics engineering and mechanical engineering is on the rise, especially led by the automotive industry that is experiencing significant changes with the move towards electric and autonomous vehicles reshaping industry dynamics, according to a report by Quess Digital Engineering. Electronics engineering (40%) remains highly sought-after across various industries, with a growing emphasis on AI, Machine Learning, and Cloud Computing integration, while mechanical engineering (22%) sees a rise in demand for CAD specialists, followed by CAE experts with strong engineering principles knowledge, according to the survey.Focus on fuel efficiency and battery performance has boosted lightweight design. Embedded engineering is growing in Battery Management Systems, safety technologies, hardware development, Embedded C programming, AUTOSAR standards, and HIL/SIL testing. Mechanical engineering roles in cockpit, interior, exterior trim seating, and lightweight body construction are in high demand. Electrical engineering is seeing a rise in demand for high voltage wiring design.

Source: By Rica Bhattacharyya, https://economictimes.indiatimes.com/, August 06, 2024

UP Government Clarifies Registration Fee Waivers For All Hybrid Vehicles

After various rounds of discussions with the major automobile manufacturers, the chief secretary of the UP government Manoj Kumar told the media that they had no intentions to revoke the entire waiver of registration fee on plug-in hybrid vehicles. The chief secretary clearly stated that waiver and incentives are given to these companies in an effort to boost electric vehicles and replace conventional gasoline cars. According to some people familiar with the matter, an ICE car customer will be replaced by a hybrid car customer. Industry bodies and other stakeholders who attended the meeting notified that the amount of incentives given for hybrid vehicles could be different from electric vehicles. An OEM who was present at the meeting said, “A complete rollback of the registration tax waiver is unlikely, the quantum of waiver for hybrids and EVs may be different. This clarity will emerge later.”  The confusion started when in July, the state government had announced to waive off 8-10 percent registration fees on plug-in hybrid vehicles.

Source: https://www.electronicsb2b.com/, August 12, 2024

Huawei Reportedly Takes Aim at Nvidia’s Share of China Market With New AI Chip

Huawei is reportedly working on a new artificial intelligence (AI) chip to challenge Nvidia's (NVDA) chips amid tightening export controls on U.S. semiconductor technology. The China-based tech company's reported new chip could eat into market share lost by Nvidia amid U.S. trade restrictions affecting AI chips, the Wall Street Journal reported Tuesday. Nvidia offers the H20 chip in China, a version of its H200 offered to American customers that is capable of running AI workloads with lower computing power, to comply with U.S. export controls. Due to the restrictions, Chinese companies wouldn't have access to Nvidia's highly anticipated Blackwell AI chip, though there have been reports that Nvidia is working on a new AI chip that would comply with export rules. SemiAnalysis analysts said that if Huawei makes a more capable AI chip and trade restrictions persist, "Nvidia would lose market share rapidly in China," the Wall Street Journal reported.

Source: By Naomi Buchanan, https://www.investopedia.com/, August 13, 2024

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Information Technology

Time to hit refresh: IT deals worth $26 billion up for grabs

The global market for information technology deals is expected to balloon with nearly 700 contracts worth $26 billion due to be renewed in the five months to December, industry data shared exclusively with ET shows. This near eight-fold increase from the estimated $ 3.5 billion worth of deals that were likely renewed in the first quarter of the financial year, offers a renewed opportunity for India’s top IT vendors including Tata Consultancy. Of the contracts up for grabs around sixteen are worth over $500 million or more and approximately 62 deals are over $100 million, according to UK-based technology research and advisory firm Omdia. These deals are from outsourcing firms and system integrators --where most Indian IT vendors compete-- and are spread across sectors like government, telecommunication, banking, manufacturing and services.

Source: https://economictimes.indiatimes.com/, August 14, 2024

Cognizant Expands to Indore, Creating 1,500 Jobs

Cognizant has expanded its presence in India by opening its first centre in Indore, Madhya Pradesh, a move set to create over 1,500 jobs with potential growth to 20,000 in the future. The new facility, spanning 46,000 square feet, was inaugurated by Madhya Pradesh Chief Minister Mohan Yadav, who emphasised the importance of intellectual property in the 21st century. “The 21st century is the century of intellectual property, which will make its mark in the world on the basis of information technology and artificial intelligence (AI),” Yadav stated during the ceremony. Located at Brilliant Titanium in the heart of Indore, the centre has a seating capacity for 500 and can accommodate up to 1,250 associates in a hybrid work model. Cognizant’s expansion in Indore adds to its existing presence in cities like Bengaluru, Bhubaneswar, Chennai, and others across India. Madhya Pradesh has secured investment proposals worth INR 3,200 crore from Google, NVIDIA, and Microsoft, in a single day during an interactive session.

Source: https://analyticsindiamag.com/, August 14, 2024

More than 12,000 register for IT job fair ‘Reboot 24’ in Kozhikode

Online registrations for ‘Reboot 24’ crossed the 12,000-mark, as Government Cybepark, in association with Calicut Forum for Information Technology (CAFIT), will roll out one of the biggest job fairs for IT professionals this weekend. Seeking to provide a platform to aspirational talents to launch their career or take their skills to the next level, the August 17 event at the Calicut Trade Centre will witness the participation of 100 companies and generate 1,500 employment opportunities. While IT professionals from all the 14 districts of Kerala will participate in ‘Reboot 24’, registrations have also come in from cities such as Coimbatore, Chennai, and Bengaluru. CAFIT Secretary Abdul Gafoor K.V. noted that the registrants include both beginners and experienced professionals.

Source: https://www.newsexperts.in/, August 13, 2024

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Consumer Electronics

India Smartphone Shipments Fall 2% YoY in April-June Quarter, Record Highest Ever Q2 Value

India’s smartphone shipments fell 2% YoY in Q2 2024 (April-June), according to Counterpoint’s Monthly India Smartphone Tracker. The decline was influenced by a heatwave, a seasonal slump, and slower demand from Q1 2024. In response, OEMs hosted sales events in Q2 to clear inventory, leading to a reduced sell-in and a period of degrowth. Heatwave conditions in various regions led to lower footfalls in offline channels and delayed smartphone purchases as consumers prioritized appliances like air conditioners and refrigerators. This reduced demand caused an inventory build-up. However, summer sales at online channels, good harvest and aggressive promotions towards the end of the quarter provided relief to OEMs, helping close the quarter on a better note than at the beginning. During the quarter, Xiaomi reclaimed the top spot with a 23% YoY growth in its shipments, driven by a streamlined and focused portfolio that spans from the entry-level to affordable premium segments. To further solidify its position, the company employed a strategy to push flagship handsets, improve marketing and expand distribution channels.

Source: https://www.counterpointresearch.com/, August 01, 2024

Consumer shift to premium products drives India's electronics market growth

The premiumisation trend further got magnified in sales of electronic products such as smartphones, appliances and televisions in the January to June period of this year, with the industry’s value growth significantly outpacing volume or number of units sold in brick-and-mortar stores. The consumer electronics market in India saw a significant shift towards premium products in the first half of 2024. While value sales increased by 11% in offline retail, unit sales remained almost flat, highlighting a trend where consumers prioritize feature-rich, high-end products. Online sales also grew, outpacing offline growth. The smartphone segment registered a 12% rise in value, though volume remained unchanged. Small domestic appliances, such as kitchen products, grew in value by 29%, and major domestic appliances rose by 18%, driven by increased demand for cooling products amid a severe heatwave.

Source: https://economictimes.indiatimes.com/, August 12, 2024

Xiaomi, Vivo, Realme and Oppo in high demand: Indians lapping up Chinese brands despite intense scrutiny

Indian consumers are lapping up Chinese electronics brands as they offer value for money and don't suffer from the perception of poor quality anymore, giving them a strong market share across segments, said industry executives. China's Xiaomi was examined by Indian govt agencies over alleged foreign exchange violations in 2022, which coincided with a large proportion of its top leadership changing. The company ceded its No. 1 spot in the December quarter of 2022 to Samsung, eventually sliding to fourth. But by the June quarter this year, Xiaomi was back at the top on the back of an aggressive expansion in offline retail. Vivo is another Chinese company that has faced investigations over allegations of tax violations and money laundering.

Source: By Writankar Mukherjee & Subhrojit Mallick, https://economictimes.indiatimes.com/, August 10, 2024

Attero launches e-waste recycling platform 'Selsmart' for consumers

E-waste recycler Attero has announced entry into the D2C sector with the launch of an integrated e-waste Consumer Take-Back platform– Selsmart. The platform aims to transform the e-waste recycling landscape and combat India's burgeoning e-waste crisis, projected to reach 14 million tonnes by 2030, the company said in a statement. Electronic goods consumption is on the rise, and their lifecycles are becoming increasingly shorter. Improper disposal of these items can lead to data leakage and significant environmental issues, including soil and water contamination. India is ranked fifth in the list of countries with the highest number of data breaches, with 5.3 million accounts compromised in 2023, it said. Selsmart will simplify the recycling process with scheduled doorstep pick ups of old electronics, it added.

Source: https://economictimes.indiatimes.com/, August 01, 2024

TOP

Telecom

Trai asks telcos to blacklist unregistered telemarketers' lines over spam

Sector regulator Trai on Tuesday directed telcos to disconnect all telecom resources of unregistered telemarketers found making spam calls, and to blacklist them for up to two years. Further, Trai has asked telcos to comply immediately with its latest directive and submit regular updates on action taken in this regard on a fortnightly basis. Issuing its directive to telcos, Trai said this "decisive action" is expected to significantly reduce spam calls and provide relief to consumers. Trai in a release said it has issued "directives to access providers to disconnect all telecom resources of unregistered senders for making spam calls and to blacklist such senders under the Telecom Commercial Communication Customer Preference Regulations, 2018" regulations. Towards this, Trai has mandated all access service providers to stop voice promotional calls whether pre-recorded or computer generated or otherwise from all unregistered senders or telemarketers (UTMs) using bulk connections or other telecom resources. "... All promotional voice calls from the unregistered Senders/ Unregistered Telemarketer (UTMs) using Telecom Resources (SIP/ PRI/ other telecom resources) shall be stopped immediately," Trai said.

Source: August 13, 2024

Bharti dials up UK telecom play with $4 billion stake in BT Group

Bharti Global, the international investment arm of Bharti Enterprises, has decided to buy 24.5 per cent equity in BT Group — a move that will make the Indian conglomerate the biggest shareholder in the UK’s second-largest telecom company both in terms of market value and subscriber count. The shares are being purchased from billionaire Patrick Drahi’s Altice UK through a combination of cash and debt . Though the financial details were not disclosed, Bharti Enterprises Chairman Sunil Bharti Mittal, during a virtual press conference on Monday, said the approximate deal size could be reached according to BT’s stock price. That works out to about $4 billion, given that BT Group is valued at $16.6 billion on the London Stock Exchange. Shravin Mittal, managing director of Bharti Global, joined his father at the media interaction. In a stock exchange filing in London, Bharti said it had no intention of making an offer to buy the British fixed and mobile communications provider. Mittal revealed that his group won’t even seek a board position.

Source: By Subhayan Chakraborty, August 12, 2024

MTNL enters 10-year service agreement with BSNL

Delhi and Mumbai service provider Mahanagar Telephone Nigam Limited (MTNL), in a press release, made several announcements after a board meeting was held on Wednesday. These announcements included agreements and approvals of proposed sales. MTNL entered a service agreement with BSNL for a 10-year period. The agreement can be revoked by mutual consent of the two parties by giving a six-month notice. MTNL also announced approval for closure of Millennium Telecom Limited (MTL), a wholly owned subsidiary of MTNL. The procedure will comply with applicable DIPAM guidelines and will follow the process as per SEBI/ Company laws. The company further approved the proposed sale of shares of MTNL in MTNL STPI IT Services Ltd (MSITS) under intimation to STPI. This will be done by complying with the provisions of JV Agreement with STPI and complying with applicable DIPAM Guidelines. and all other processes as per SEBI/Company laws. It will offer the same to any other PSU or State Government.

Source: https://economictimes.indiatimes.com/, August 14, 2024

Vi Debt Towards Govt and Bank Rose in Q1 FY25

Vodafone Idea Limited (VIL) released its performance results for Q1 FY25 on Monday. To check the full results, you can refer to the link below. Here, we will discuss the net debt of the company. Vodafone Idea's debt towards the government and banks rose in Q1 FY25. At the end of Q4 FY24, this was in a reducing trend. Debt rising for the company isn't too bad if it is at moderate levels in the short term. However, it is still something one should not overlook. To give you a comparison, the total debt of the telecom operator from banks and financial institutions at the end of Q4 FY24 was Rs 40.4 billion. So this has gone up by Rs 6.1 billion or rather Rs 610 crore. The government debt also shot up. At the end of Q4 FY24, the debt towards the government was Rs 2,034.3 billion. At the end of Q1 FY25, this became Rs 2,095.2 billion. The cash and bank balance stood at Rs 181.5 billion for Vi at the end of the June 2024 quarter.

Source: https://telecomtalk.info/, August 14, 2024

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EV’s & Auto Electronics

Euler Motors Unveils High-Tech EV Factory In Haryana With Industry-First Innovations

Euler Motors, a top player in the electric commercial vehicle space, has opened a new manufacturing and R&D facility in Palwal, Haryana. Spread across a massive 5 lakh sq. ft., this plant can produce up to 36,000 vehicles every year. With an investment of Rs 100 crore, it will act as Euler Motors’ national manufacturing hub, helping the company meet the growing demand for its HiLoad electric three-wheelers as it plans to expand to 40 cities by FY25. Euler Motors plans to expand its reach from 26 to 40 cities by FY25, driven by the growing demand for its 3W HiLoad EV. Saurav Kumar, Founder & CEO, highlighted that this facility is a testament to the “Make in India” initiative and aims to drive local production and innovation. The new plant not only boosts manufacturing efficiency but also aligns with high environmental and social standards. It features advanced waste management systems, a sewage treatment plant, and a groundwater recharge system. Additionally, Euler Motors is committed to gender diversity, with 20 percent of its workforce being women.

Source: By Samreen Pall, https://www.news18.com/, August 14, 2024

Fresh Bus Raises $10.5M For Electric Bus Expansion

Fresh Bus, an all-electric intercity bus startup, announced on Tuesday that it has secured USD 10.5 million (approximately INR 87.5 crore) in a Series A funding round. The investment was spearheaded by Maniv and included contributions from Shell Ventures, Alteria Capital, and existing investor Riverwalk Holdings. The capital will be utilized to broaden operations, advance technology, expand the team, and augment the fleet. To date, the company has accumulated roughly INR 110 crore through three rounds of funding, including two seed fundings last year. Fresh Bus currently manages 20 electric buses on routes between Bengaluru-Tirupati and Hyderabad-Vijayawada. The additional capital will support the launch of 15 new routes and the addition of 150 more electric buses. Sudhakar Chirra, founder and CEO of Fresh Bus, said the company aims to develop a national network and position itself as the leader in the Indian intercity bus market in the coming years. They plan to expand to 1,000 electric buses across India within the next four years, create skilled job opportunities, and provide a sustainable mass road transport option.

Source: https://www.electronicsb2b.com/, August 14, 2024

Tata Motors Says 36% Customers Switched From ICE Vehicles To EVs

Despite a decline in electric vehicle (EV) demand during the first quarter of FY25, Tata Motors, the market leader, has observed a shift among consumers away from Internal Combustion Engine (ICE) vehicles. A Tata Motors survey revealed that 36% of customers have abandoned their ICE vehicles, while 75% now use electric vehicles as their primary vehicle. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, shared insights from a survey of 10,000 customers, highlighting a significant transition to EVs as primary family cars. He noted the lower maintenance costs of EVs, with batteries needing replacement only every eight years. With the introduction of the Curvv electric model, Tata Motors aims to eliminate range anxiety among consumers. The Curvv, part of the acti.ev electric architecture, promises a maximum range of 585 km on a 55kWh battery pack and starts at ₹17.49 lakh.

Source: https://www.electronicsb2b.com/, August 14, 2024

Uttar Pradesh Supports Hybrid Tax Exemption, Benefiting Toyota

Uttar Pradesh has decided to maintain the waiver on registration taxes for hybrid vehicles, according to two informed sources speaking to Reuters. This decision benefits Toyota but poses challenges for Tata Motors and Mahindra & Mahindra. Hyundai, Kia Motors, Mahindra, and Tata, which together account for 10% of India’s car sales, had urged the state to eliminate this incentive. They argued that it would hinder India’s goals for adopting fully electric vehicles and impact their investment strategies, as per Reuters. At a meeting with automakers last Sunday, Uttar Pradesh Chief Secretary Manoj Kumar Singh confirmed that there would be no reversal of this policy, reported an industry source and a state government official familiar with the matter. Singh was unavailable for comment when attempts were made to contact him. Industry executives have expressed concerns that other states might adopt Uttar Pradesh’s approach, which last month reduced the cost of some hybrid vehicles by 10% due to the tax waiver.

Source: https://www.electronicsb2b.com/, August 14, 2024

TOP

Defence & Solar

Despite security threats, India’s defense budget remains static

Beset by security issues at home and along its borders, the Indian government unveiled its Fiscal Year 2024-25 defense budget on July 23. Funds amounted to 6.219 trillion rupees, or approximately $74.3 billion in U.S. dollars, according to a government press release. Defense received the highest share of any government department — 12.9% of the union budget — with Delhi stating in the release that the figure was 4.79% higher than last year’s defense budget and 18.43% higher than the FY2022-23 sum. While the development sounds positive at face value, the 2024-25 defense budget is actually just 0.06% higher than last year’s total defense expenditure. The close proximity of these figures relates to Prime Minister Narendra Modi’s announcement in February, shortly before national elections, of an extra “interim” defense budget. These numbers reflect the grave security situation that India faces due to longstanding tensions with Pakistan. The Stockholm International Peace Research Institute calculated India’s defense expenditure at 2.4% of GDP in 2023.

Source: By Gordon Aurthur, https://www.defensenews.com/, August 06, 2024

India’s plan for advanced fighters: LCA Mark2 by 2029, AMCA by 2035

In a significant boost to India's indigenous fighter aircraft program, 4.5 generation plus LCA Mark 2 fighter jets are slated to commence flights by March 2026, with mass production expected to begin by 2029. Furthermore, the mass production of the Advanced Medium Combat Aircraft (AMCA), a fifth-generation fighter, is anticipated to start by 2035, according to defense officials. These timelines emerged during a high-level meeting presided over by DRDO chairman Dr. Samir V. Kamat and Indian Air Force Deputy Chief Air Marshal Ashutosh Dixit. The high-level review meeting focused on the LCA MK-II Development program, held at DRDO Bhawan. Dr. Kamat and Air Marshal Dixit reviewed the developmental progress made by the Aeronautical Development Agency. Various DRDO Labs and Director Generals of Clusters involved in developing systems and sub-systems, alongside the Flight Testing of the prototype, were present to discuss the development status, risks, and mitigation plans toward achieving the first fly-worthy prototype.

Source: https://economictimes.indiatimes.com/, August 11, 2024

DRDO Carries Out Maiden Test of LRGB 'Gaurav' With Pinpoint Accuracy From Su-30MKI Fighter

Defence Research and Development Organisation (DRDO) has carried out successful maiden flight test of Long Range Glide Bomb (LRGB), GAURAV from Su-30MKI platform of the Indian Air Force (IAF). The test was conducted off the coast of Odisha. GAURAV is an air launched 1,000 kg class glide bomb capable of hitting targets at long distance. After being launched, the glide bomb steer towards the target using highly accurate hybrid navigation scheme with a combination of INS and GPS data. GAURAV has been designed and developed indigenously by the Research Centre Imarat (RCI), Hyderabad. During the flight test, the glide bomb hit the target erected at Long Wheeler’s island with pinpoint accuracy. Complete flight data during the test launch was captured by Telemetry and Electro optical tracking systems deployed by Integrated Test Range along the coastline. The flight was monitored by senior DRDO scientists. Adani Defence and Bharat Forge, the Development cum Production Partners also participated during the flight trial.

Source: https://www.indiandefensenews.in/, August 14, 2024

DRDO & Army Successfully Test Fires Made-In-India Portable Anti-Tank Missile: Watch

The Defence Research and Development Organisation (DRDO) on Tuesday (August 13) successfully test-fired the indigenously-built Man-Portable Anti-Tank Guided Missile (MP-ATGM). The test was conducted at a field firing range in Jaisalmer, Rajasthan, reported ANI citing DRDO officials. The MP-ATGM is a shoulder-launched, portable missile system designed specifically to destroy enemy tanks and armoured vehicles. This advanced ATGM system is equipped with both day and night capabilities, top attack functionality, and a dual-mode seeker.

Source: https://www.indiandefensenews.in/, August 14, 2024

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MSME

(Special section of the MSME related news under ELCINA Micro & Small Industry Forum)

MSMEs to get Rs 15,000-crore subsidy to boost recycling, efficiency

The Centre is planning a Rs 15,000 crore green initiative aimed at micro, small, and medium enterprises (MSMEs), which will also include the development of an e-marketplace for recyclables to link manufacturers with waste collectors, according to a report by The Economic Times. Scheduled to launch by early 2025, the initiative will involve establishing material recovery facilities (MRFs) and managing post-consumption product treatment. Additionally, a specialised organisation is expected to be established to guide MSMEs in their shift to green energy and to create tailored green policies for these enterprises, the report said. The report quoted Anil Bhardwaj, secretary general at Federation of Indian Micro, Small & Medium Enterprises, as saying that this incentive will boost competition in the global market. "By providing financial incentives, capacity building, and policy support, the initiative empowers MSMEs to reduce their carbon footprint, adopt green technologies, and create new business opportunities. This not only benefits the environment but also enhances the competitiveness of MSMEs in the global market," Bhardwaj said. As part of the initiative, a new e-marketplace for recycling is expected to be established. This platform will serve as a unified space for manufacturers and waste collectors, facilitating seamless information exchange between the two parties.

Source: By Rimjhim Singh, https://www.business-standard.com/, August 14, 2024

How OCEN can have a transformative impact on MSME financing in India

The Open Credit Enablement Network (OCEN) represents a groundbreaking initiative in India’s financial ecosystem, poised to revolutionize access to credit for Micro, Small, and Medium Enterprises (MSMEs). These businesses, which form the backbone of the Indian economy, have traditionally faced significant challenges in securing financing. OCEN, by creating a standardized framework for digital credit, offers a pathway to overcoming these barriers and fostering financial inclusion. Despite its potential, OCEN adoption faces several hurdles. A primary challenge is the lack of awareness and understanding among stakeholders, including MSMEs and financial institutions. Many businesses are unfamiliar with the benefits and workings of OCEN, often perceiving it as complex or inaccessible. Technological challenges also pose a significant barrier, as integrating OCEN with existing systems requires robust digital infrastructure and cybersecurity measures. Furthermore, the regulatory landscape, which is often fragmented, complicates the standardization needed for seamless implementation across different regions and sectors. Lastly, concerns about data privacy and security must be addressed to build trust among MSMEs and other participants.

Source: https://www.financialexpress.com/, August 12, 2024

Large number of women engaged in business but still small compared to men

A little over 20% of micro, small and medium enterprises and 47.6% of the total DPIIT recognised start-ups are led by women, government data shows. The findings are a part of the latest Report on Men and Women in India – 2023 that was released by the Ministry of statistics and programme implementation. Using data from the Udyam Registration Portal of the ministry of MSME, the report said that women-owned MSMEs constitute 20.5% of the total number of MSMEs registered on the portal since its inception on July 1, 2020. “These women-owned MSMEs’ contribution to the employment generated by the total Udyam registered units is 18.73%, involving 11.15% of the total investment,” it further noted. About 10.22% of the total turnover from MSMEs also comes from these women owned enterprises. The annual report by MOSPI on gender statistics, compiles data on men and women in the country and their participation in economic activities as well as social and health indicators. According to the 2011 Census, India's population stood at 121.1 crore, with 48.5% being female. By 2036, it is expected to reach 152.2 crore, with a slightly improved female percentage of 48.8%.

Source: https://www.businesstoday.in/, August 13, 2024

India-US join hands to promote cooperation in MSMEs

In an effort to give a further boost to partnership, India, and the US signed a landmark Memorandum of Understanding (MoU), which will enable the Micro, Small and medium enterprises (MSMEs) of the two countries to participate in global markets and foster trade. S. C. L. Das, Secretary, Ministry of Micro, Small and Medium Enterprises, and Isabel Casillas Guzman, Administrator, Small Business Administration (SBA), United States of America, signed the MoU here in New Delhi. The MoU provides a framework for both sides to discuss issues concerning micro, small and medium enterprises (MSMEs) and explore possibilities for cooperation. It envisages the exchange of expertise between the two sides on issues related to improving MSME participation in the global marketplace through mutual visits as well as webinars and workshops on topics including access to trade and export finance, technology and digital trade; green economy, and trade facilitation.

Source: https://www.businessinsider.in/, August 14, 2024

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ELCINA EVENTS , ACTIVITIES & SERVICES 

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ELCINA Publications

https://elcina.com/roadmap-for-developing-pcb-eco-system-in-india	Roadmap For Developing PCB Eco-System in India Key Findings Indian PCB market and industry size in terms of domestic production, exports, and imports Growth drivers and challenges (needs & gaps) in the Indian PCB industry Growth potential of PCB manufacturing in India and identify enablers for creating & strengthening the domestic value chain Key inputs required viz. investments, technology, and infra eco-system Details of key PCB value chain players – global and domestic, who can be invited to invest to establish a strong PCB industry
https://elcina.com/ems-task-force-report-on-market-industry-analysis-of-ems-sector-in-india	EMS Task Force Report Key Findings Currently EMS Industry (Contract Manufacturing Services) are valued 832 Bn $ and are projected to grow 1055 Bn by 2025. Domestic electronics manufacturing is estimated at USD 75 Bn of which 39 Bn constitutes EMS value. This is divided into 23.5 Bn domestic Mfg. and USD 15.5 Bn PCBS/Sub-Assembly imports. Further USD 53.5 Bn is finished Electronic Goods imports of which USD 17 Bn is EMS value. Thus total EMS opportunity loss is US$ 32.5 Bn (15.5 +17). The report estimates that EMS production can grow realistically from USD 23.5 Bn today to USD 152 Bn by 2025 at CAGR of 45%. This will meet 75% of the countries EMS requirement of US$ 203 Bn by 2025 against a total estimated market of 400 Bn.
https://elcina.com/elcina-task-force-report-on-electronic-components	ELCINA Task Force Report on Electronic Components Key Findings Current status of component manufacturing in India – Areas of competence vs Gaps and inadequacies Components which urgently require investments and growth in domestic manufacturing Emerging technology and new components for upcoming opportunities Constraints and bottlenecks to be addressed Overcoming Policy constraints, WTO (ITA-1) deadlock and Zero Duty issue Strategy for overcoming these constraints Eco-System requirements- Role of Central and State Governments
https://elcina.com/elcina-directory-of-indian-electronics-industry	ELCINA Directory of Indian Electronics Industry 2023-24 Description ELCINA Directory of Indian Electronics Industry – includes the updates on Indian Electronics Industry and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. This handy compendium with its easy-to-read format attracts the attention of a growing number of users (within India and abroad) Apart from electronics industry, the users of this Directory range from financial institutions, commercial banks, FIIs, Consultancy organizations as well as industry promotion institutes across the world….

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FORTHCOMING EVENTS &  GENERAL INFORMATION 

International Events
	KPCA Show 2024 (Int’l Electronic Circuits and Packaging Show) 4 - 6 September 2024 Songdo Convensia, Incheon http://www.kpcashow.com/m/eng/about.asp
	TPCA Show 23-25 October 2024 Taipei Nangang Exhibition Center https://tw.tpcashow.com/introtw/
	International Electronics Circuit Exhibition 4-6 December 2024 Shenzhen World Exhibition & Convention Center (Bao’an), China https://www.hkpcashow.org/en/show/information

Domestic Events
	Electronica India 11th -13th September 2024 India Expo Mart, Greater Noida https://electronica-india.com/en/trade-fair/
	Semicon India 2024 11th -13th September 2024 India Expo Mart, Greater Noida SEMICON India 2024 - Shaping the Semiconductor Future | SEMI
	14th Source India Electronics Supply Chain February, Chennai Trade Centre https://event.sourceindia-electronics.com/

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