VOL XXV, ISSUE 23

15 December 2024

The Directorate General of Foreign Trade (DGFT) has issued Policy Circular No. 10/2024-25 dated December 13, 2024, clarifying the applicability of amendments to Para 5.10(c) of the Handbook of Procedures (HBP) 2015-20 for third-party exports under the Export Promotion Capital Goods (EPCG) Scheme.

Key Highlights:

1. Judicial Reference:

   • The Hon’ble High Court of Ahmedabad, in its judgment dated December 21, 2023 (SCA No. 16316/2021), set aside Policy Circular No. 22/2015-20 (dated March 29, 2019) regarding third-party exports under the EPCG Scheme.

   • The Supreme Court dismissed the Special Leave Petition (SLP) filed by the Union of India on August 2, 2024.

2. Prospective Application:

   • The amendment to Para 5.10(c) of the HBP 2015-20 (introduced during the mid-term review) is applicable prospectively for third-party exports against EPCG Authorizations issued on or after December 5, 2017.

   • Exports made prior to this date will be governed by the relevant policy in force at that time.

3. Export Obligation Fulfillment:

   • For shipments made before December 5, 2017, the full realized value of the shipping bill may be counted toward fulfilling the export obligation, provided exports are counted only once and the average export obligation is maintained.

   • For shipments made on or after December 5, 2017, only the actual payments realized through normal banking channels from the third-party exporter’s account to the authorization holder’s account will be considered for export obligation fulfillment.

This clarification ensures compliance with the updated policy and provides guidance for exporters and stakeholders regarding third-party export obligations under the EPCG Scheme.

For more details, members are advised to refer to the official DGFT website regarding DGFT Policy Circular No. 09/2024-25 Dated 11th December 2024.

The Directorate General of Trade Remedies (DGTR) has issued the final notice on the Product Under Consideration (PUC) and Product Control Number (PCN) methodology for the anti-dumping investigation concerning imports of "Solar Cells whether or not assembled in Modules or made up into Panels" from China PR.

Key Highlights:

• Scope of PUC: The investigation will cover solar cells (monocrystalline and multi-crystalline), modules, and panels, produced using crystalline silicon (c-Si) or thin-film technology.

• PCN Methodology: The final methodology categorizes the product types as:

• Mono-cells and multi-cells (solar cells).

• Mono-modules/panels and multi-modules/panels (solar modules/panels).

• Thin Film Modules/panels  The methodology is based on product types with more than 5% cost differences.

• Next Steps: Interested parties are required to file questionnaire responses by January 4, 2025. Industry participants should submit their questionnaire responses by January 4, 2025, to ensure their views are considered in the anti-dumping investigation. Engaging with the defined PCN methodology and presenting evidence for product exclusions will help safeguard domestic manufacturing interests and promote fair competition in the solar sector.

This investigation aims to assess the impact of solar cell imports on domestic industries and establish appropriate trade remedies.

For more details, members are advised to refer to the official DGTR website regarding DGTR File No. 6/26/2024-DGTR dated 4th December 2024.

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 239/33/2024-GST, introducing amendments to streamline the adjudication process for show-cause notices (SCNs) issued by the Directorate General of GST Intelligence (DGGI).

Key Highlights:

• Expanded Adjudication Authority: Additional and Joint Commissioners of Central Tax in specified Commissionerates are now empowered with All India jurisdiction to adjudicate SCNs issued by DGGI officers.

• Allocation Based on Tax Demand: Adjudication authority will be determined by the location of the noticee with the highest tax demand. A detailed table specifies the Commissionerates responsible for adjudication across different Central Tax Zones.

• Inclusion of Subsequent Notices: SCNs issued after the original notices on the same issue will either be handled by the jurisdictional authority or by a common adjudicating authority, depending on the number of noticees involved.

• Pending Cases: For SCNs issued before December 1, 2024, without adjudication orders, corrigenda will designate new adjudicating authorities in line with the updated rules.

This move aims to bring greater consistency and efficiency to GST adjudication processes. Stakeholders are encouraged to review the updates and direct any concerns to CBIC.

For more details, members are advised to refer to the official CBIC website regarding CBIC Circular No. Circular No. 239/33/2024-GST dated 4th December, 2024.

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 31/2024-Central Tax under the powers conferred by the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017. This notification appoints specific officers for adjudicating notices issued by the Directorate General of Goods and Services Tax Intelligence (DGGI) under various sections of the CGST Act.

The notification specifies the adjudicating authorities for notices issued to various noticees across India. Each notice is linked to a particular GSTIN and address, with details on the Show Cause Notices (SCNs), issuing authority, and the appointed adjudicating authority.

Key Highlights:

• Noticees and Notices: A list of noticees, including their GSTIN, address, and the corresponding show-cause notice numbers, are provided.

• Issuing Authorities: Notices are issued by officers of the DGGI (e.g., Joint Director, Additional Director, Deputy Director).

• Adjudicating Authorities: The appointed authorities for adjudication are specified, typically at the level of Additional Commissioner, Joint Commissioner, or equivalent officers in various Central GST and Excise Commissionerates.

This notification is issued to ensure proper adjudication of causes related to GST disputes and actions taken by the DGGI.

For more details, members are advised to refer to the official CBIC website regarding CBIC Notification No. 31/2024-Central Tax dated 13th December 2024.

Upcoming QCOs in the Official Gazette: Overview of Product Orders and Implementation Dates  

Below is an overview of the key Quality Control Orders (QCOs) and their implementation dates:

These QCOs are designed to ensure that the listed products meet the required quality standards, thereby enhancing safety and compliance within the industry.

Several of these orders have been issued to supersede previous versions. Manufacturers are advised to carefully examine the revised provisions and note the updated implementation dates to ensure full compliance.

For more details, members are advised to refer to the official website regarding Upcoming QCOs in the Official Gazette.

DPIIT QCO notification S. O. 5358(E) dated 10th December 2024: Ministry of Commerce and Industry Announces Amendment to Laboratory Glassware Quality Control Order to Support MSMEs and R&D

The Ministry of Commerce and Industry has issued the Laboratory Glassware (Quality Control) Amendment Order, 2024, which amends the previous Laboratory Glassware (Quality Control) Order, 2023. The key updates are as follows:

1. Exemption for MSMEs: The new Order provides a two-year exemption for laboratory glassware manufactured by micro, small, and medium enterprises (MSMEs) registered on the Udyam portal. The exemption applies to goods produced by enterprises with an investment in plant and machinery of up to ₹25 lakh and a turnover not exceeding ₹2 crore, certified by a Chartered Accountant.

2. Research and Development Exemption: Manufacturers of laboratory glassware are allowed to import up to 200 items per year for research and development purposes, provided these items are not sold commercially and are disposed of as scrap. Manufacturers must maintain records and report to the Central Government annually.

This amendment, which comes into force upon its publication in the Official Gazette, aims to support MSMEs and research activities in the laboratory glassware industry.

For more details, members are advised to refer to the official DPIIT website regarding DPIIT QCO notification S. O. 5358(E) dated 10th December 2024.

For any queries regarding this ELCINA Policy Capsule, please contact policy@elcina.com.

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         INDUSTRY  SCAN                                                                             

General

House panel pulls up IT ministry for failing to use semiconductor funds

A parliamentary panel has pulled up the Ministry of Electronics and IT for surrendering more than half the funds allocated for semiconductor and display manufacturing projects in 2023-24, according to a report tabled in the Lok Sabha on Wednesday. The Standing Committee on Communications and IT in the fourth report on demand for grants observed gradual decrease in allocation of funds from Budget Estimate (BE) 2021-22 to BE 2024-25 for Digital India Programme as well as underutilisation by the ministry over the years. The report said under Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, during FY24, of the total allocation of Rs 1,503.36 crore the actual expenses as on March 31, 2024 indicates that the ministry could spend only Rs 681.11 crore, "surrendering a staggering 55 per cent of the allotted fund".

Source: https://www.business-standard.com/, December 18, 2024

Joe Biden to announce Chinese semiconductor probe in coming days

President Joe Biden’s administration is set to initiate a trade investigation into Chinese semiconductors in the coming days, as part of a push to reduce reliance on a technology that US officials believe pose national security risks. The probe could result in tariffs or other measures to restrict imports on older-model semiconductors and the products containing them, including medical devices, cars, smartphones and weaponry, according to people familiar with the matter. The investigation examining so-called foundational chips could take months to conclude, meaning that any reaction to the findings will be left to the discretion of President-elect Donald Trump’s incoming team. Biden officials have for months debated whether to initiate the investigation under Section 301, which allows the US to impose restrictions on countries with unfair trade practices, the people said.

Source: https://www.hindustantimes.com/, December 18, 2024

Kaynes Tech eyes expansion into semiconductor industry to enhance EMS capabilities

Kaynes Technology India, a leading electronics manufacturing services (EMS) provider, is embarking on a strategic expansion aimed at becoming a fully integrated player in the industry. Jairam Sampat, Whole-Time Director and CFO of Kaynes Technology, said, "We do believe that as part of our strategy, we must deepen our technology presence, and just being an assembler is not going to be sufficient for meeting the growth aspirations of all the stakeholders that we have in the company." As part of its strategy to build a stronger technological foundation, Kaynes is focusing on the establishment of its semiconductor manufacturing facility. Sampat shared details on the ongoing process: "First, we have to get our semicon factory going. We are in the process of setting up the buildings, etc. So in the coming year, we can do the proof of concept as well as by January-March of next year, we will probably have the commercial production going."

Source: By Reema Tendulkar, https://www.cnbctv18.com/, December 17, 2024

Gujarat Launches Rs 840 Crore Semiconductor Facility In Surat

In a significant stride towards India's technological self-sufficiency, a new semiconductor chip manufacturing facility was inaugurated on Sunday in Bagumara village, Palsana taluka of Surat district. Central Jal Shakti Minister CR Paatil presided over the ceremony, marking a notable milestone for the state's industrial landscape. The state-of-the-art plant, established by Suchi Group—a company transitioning from the textile sector—represents a substantial investment of Rs 840 crore. With a production capacity of 300,000 chips daily, the facility underscores Gujarat's emerging potential in high-tech manufacturing.

Source: https://knnindia.co.in/, December 16, 2024

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Information Technology

New IT policy of govt. will make A.P. an investment destination, opine experts

The State government on Thursday released the IT & GCC Policy 4.0 (information technology & global capability centres), aiming to develop Visakhapatnam as a global information technology destination. Attracting top IT companies to set up campuses and innovation hubs with state-of-the-art facilities and reliable high-speed internet by providing subsidies and simplifying regulatory processes is one of the key objectives of the policy. To make Visakhapatnam an attractive destination for IT professionals, the government has set a target of enhancing the quality of life by improving housing, healthcare and recreational facilities. Along with large clusters in Visakhapatnam, the government is eyeing youth from all over the State, tapping into the new-age trend of working from anywhere and grasping global opportunities. This is not just limited to the IT/ITeS sector but also various desk jobs that are witnessing a steady transformation through the use of emerging tech and AI.

Source: K Kamalakara Rao, https://www.thehindu.com/, December 13, 2024

WhatsApp users can now chat with ChatGPT: Here

 WhatsApp users can now interact with friends and family with OpenAI's ChatGPT directly on the platform. This new feature will be accessed by a dedicated contact number. Users across the world could message ChatGPT by dialing 1-800-242-8478. This update marks a significant step in integrating AI capabilities into Meta’s popular messaging platform. As reported by PA Media, Meta has been rolling out several updates to enhance the user experience. A standout addition is the new Typing Indicator, which makes it easier to identify who is typing in both individual and group chats. However, there’s a warning for the users who are using older versions of their smartphones— as WhatsApp will end its support for iOS versions earlier than 15.1 starting May 2025. Users are further advised to upgrade their devices to continue using the app seamlessly.

Source: https://www.indiatvnews.com/, December 19, 2024

Tamil Nadu leads with 80 per cent local IT workforce, says Minister Palanivel Thiaga Rajan

Tamil Nadu boasts the unique distinction of having 80 per cent of its information technology workforce hailing from the state, said Palanivel Thiaga Rajan, Minister for Information Technology and Digital Services, on Tuesday. The Minister affirmed that the government remains committed to fostering ease of doing business for companies already established in the state. "Tamil Nadu's strength lies in its unparalleled technology talent, with 20 per cent of India's technology professionals hailing from the state," he said during his inaugural address at the 22nd edition of the two-day Connect 2024, organized by the Confederation of Indian Industry (CII) Chennai. The Minister outlined key government priorities, which include skilling graduating talent and integrating them into the workforce through the ICT Academy, as well as establishing policies for research and development, deep technology, and creating a skilled and stable local workforce.

Source: https://www.newindianexpress.com/, December 17, 2024

The SEC revises Information Technology System Rules to enhance investor trust

The Securities and Exchange Commission (SEC) has announced updates to the Rules on Establishment of Information Technology Systems (“IT Regulation and Guideline”). These revisions aim to better align requirements with the varying risk profiles of business operators, accommodate technological advancements, address evolving cyber threats, and ensure compliance with international standard. he updated rules will come into effect on 1 January 2025. In October 2024, the SEC conducted a hearing to gather comments from the public and stakeholders on the draft amendments to the IT Regulation and Guideline. Feedback and suggestions from stakeholders were incorporated into the finalization process. o adjust the frequency of submitting IT audit reports to be more appropriate for the risk level of small business operators and low-risk operators, with measures that allow the SEC to monitor the business operators’ risks in the event of adverse incidents.

Source: https://www.thailand-business-news.com/, December 19, 2024

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Consumer Electronics

Global Semiconductor Revenue Up 17% YoY in Q3 2024; Automotive Sector Rebound Delayed

The global semiconductor industry’s Q3 2024 revenue rose 17% YoY to reach $158.2 billion, largely fueled by demand for artificial intelligence (AI) technologies and a recovery in the memory sector. NVIDIA and AMD emerged as major winners in the AI sector, witnessing notable growth in their AI-related business segments. This trend is projected to persist with the introduction of new products in Q4 2024. In the memory sector, companies like Samsung, SK Hynix, and Micron saw double-digit YoY percentage increases in sales, bolstered by production cuts and rising demand for generative AI storage solutions. Q3 2024 marked a recovery period for semiconductor companies, after navigating a tough environment with weak consumer demand in H1 2023 by effectively managing their inventory levels. Looking ahead, demand for semiconductor content is expected to increase in Q4 2024, driven by the evolving computing requirements for AI chips and memory.

Source: https://www.counterpointresearch.com/, December 09, 2024

LG India worried about competition from parent Company

LG Electronics India is concerned that its South Korean parent may in the future start separate businesses in India which could compete with the former since there is no exclusivity arrangement between the two of them. India's largest home appliances maker highlighted the apprehensions in its draft prospectus filed with the market regulator on Friday for a planned initial public offering (IPO). The mega public issue will see LG Electronics sell a 15% stake in the Indian subsidiary to raise around ₹15,000 crore. The company expressed concerns about potential future competition from its South Korean parent and its subsidiary, Hi-M Solutek India, due to the lack of exclusivity agreements. LG India is also expanding with a new appliance rental service and a planned third factory in Andhra Pradesh.

Source: By Writankar Mukherjee, https://economictimes.indiatimes.com/, December 09, 2024

Samsung to Display AI-powered home appliances at Consumer Electronics Show 2025

Samsung Electronics, a global leader in technology, is set to make an announcement at the upcoming Consumer Electronics Show (CES) 2025. The event, one of the world's largest tech trade shows, will take place at the Las Vegas Convention Center from January 7-10, 2025. The company plans to unveil its new lineup of homeappliances, all powered by artificial intelligence (AI). These appliances are designed to streamline household tasks and enhance connectivity, making everyday life easier and more convenient for consumers. The new lineup includes AI-driven refrigerators, washing machines, and dryers. Central to these devices is Samsung's "AI Home" solution, which allows users to remotely monitor and control all compatible appliances through Samsung's SmartThings platform via touch screens embedded in the products.

Source: By Sheezan Naseer, https://www.ibtimes.co.in/, December 18, 2024

IDC: China Becomes the Largest Wrist-Worn Device Market, Leading Global Growth

According to the latest Worldwide Wearables Quarterly Tracker released by International Data Corporation (IDC), the global wrist-worn device market shipped 139.0 million units in the first three quarters of 2024, a year-over-year decline of 1.0%, mainly due to the homogenization of competition and market saturation in India and the United States. China's wrist-worn device market shipped 45.8 million units, a Year-over-year increase of 20.1%. As the largest market for wrist-worn device shipments, China led the global growth. The wrist-worn device market includes smartwatches and wristband products. Among them, the smartwatch market will ship 112.2 million units globally in the first three quarters of 2024, a year-over-year decrease of 3.8%. China’s smartwatch market shipped 32.9 million units, marking a year-over-year increase of 23.3%. The wristband market shipped 26.8 million units globally in the same period, a year-over-year increase of 12.7%. China’s wristband market shipped 12.9 million units, showing a year-over-year increase of 12.6%.

Source: https://www.idc.com/, December 18, 2024

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Telecom

BSNL to Start Working on 5G Upgrade After April-May 2025: Report

Bharat Sanchar Nigam Limited (BSNL), a state-run Indian telecom operator, is soon going to achieve its target of 1 lakh 4G towers. The telco has used indigenous technology to roll out these 1 lakh towers. Jyotiraditya Scindia, union telecom minister of India, said in a recent interview that BSNL will start working on 5G after 1 lakh 4G towers are deployed by April - May 2025. The government has maintained that BNSL will complete its rollout of 1 lakh 4G towers by mid-2025. So far BSNL has installed more than 62,000 4G towers and is on track to achieve its target. BSNL's 5G will be a simple upgrade over the 4G tech that the company is deploying. Scindia was speaking to ANI when he said that the government had two choices for BSNL's 4G rollout, either use foreign technology or use Indian tech, and the government chose the latter which was a challenging path.

Source: By Tanuja K, https://telecomtalk.info/, December 18, 2024

Regulating OTTs comes under preview of I&B ministry, concerns of Telecom Service Providers are raised: Jyotiraditya Scindia

Regulating over-the-top (OTT) platforms comes under the purview of the Information and Broadcasting Ministry, Union Minister for Communications Jyotiraditya Scindia told ANI adding that one of the six advisory groups that he had established, had flagged the issue, highlighting concerns from the perspective of telecom service providers (TSPs). The debate stems from calls for OTT platforms to share the costs incurred by Telecom Service Providers (TSPs) in delivering content to consumers. While TSPs argue that cost-sharing could support much-needed investments in their network expansion, while critics highlight the potential violation of net neutrality principles. Net neutrality mandates equal treatment of all internet traffic, prohibiting payments from content providers to TSPs. Introducing such payments, critics argue, could allow network operators to prioritize certain platforms, undermining the internet's democratic nature.

Source: https://www.livemint.com/, December 18, 2024

CISA urges switch to Signal-like encrypted messaging apps after telecom hacks

Today, CISA urged senior government and political officials to switch to end-to-end encrypted messaging apps like Signal following a wave of telecom breaches across dozens of countries, including eight carriers in the United States. CISA and the FBI confirmed these breaches in late October after reports that the Salt Typhoon, a Chinese-backed threat group, had hacked multiple U.S. telcos, including T-Mobile, AT&T, Verizon, and Lumen Technologies. Although the timing of the breaches is unclear, the attackers reportedly had access for "months or longer." Also tracked as Ghost Emperor, Earth Estries, FamousSparrow, and UNC2286, Salt Typhoon has been active since at least 2019, breaching telecom companies and government entities across Southeast Asia.

Source: By Sergiu Gatlan, https://www.bleepingcomputer.com/, December 18, 2024

Next step is establishing manufacturing zone for telecom sector: Scindia

Union Minister Jyotiraditya Scindia on Tuesday highlighted the progress made in India's telecom sector while pushing for the creation of a dedicated telecom manufacturing zone on the lines of Special Economic Zones. In an interview with ANI, Scindia said that the manufacturing zone is the next step following the establishment of the one lakh BSNL towers across the country and the upgrade of 5G technology. He said that the government had two options regarding the implementation of the 4G system for BSNL, either using foreign equipment or creating an indigenous solution, but the government chose the challenging latter route. He lauded the fact that India is now the fifth country globally to have its own 4G system. Stating that after one lakh BSNL towers are established, the government will slowly start working in the 5G system with an upgrade to software.

Source: https://www.business-standard.com/, December 18, 2024

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EV’s & Auto Electronics

Andhra Pradesh EV Policy Targets Full EV Fleet Electrification

The Andhra Pradesh government has announced the Sustainable Electric Mobility Policy 4.0, which is designed to make the state a centre for electric vehicle (EV) innovation and production. Covering the period from 2024 to 2029, the policy aims to enhance the slow uptake of EVs and expand the local manufacturing base. Recent data indicates that out of approximately 1.78 crore vehicles in Andhra Pradesh, only about 1.3 lakh are battery electric vehicles (BEVs), and a mere 817 are strong hybrid EVs. The state currently has 601 public charging stations, distributed at an average of one station every 205 kilometres. This scarcity underlines the critical need for a more robust infrastructure to support electric mobility. The policy is set to significantly boost EV adoption by fostering collaboration among key stakeholders, including public transportation providers, private fleet operators, and charging infrastructure developers.

Source: By Aryaman Raghuvanshi, https://www.electronicsforyou.biz/, December 13, 2024

Delhi EV policy woes: Registrations drop in capital while other states grow

Delhi has emerged as the only major state or union territory that saw a sharp decline in electric vehicle (EV) registrations this year, despite the government extending its EV policy until March 2025. Registrations in the national capital slumped from 1,435 units in January to just 220 in November, a staggering 85 per cent fall. In contrast, other major EV markets have reported growth. Sales in Maharashtra rose from 1,297 units in January to 1,344 in November, marking a 3 per cent increase, while Karnataka experienced an 18 per cent jump, with sales climbing from 1,121 units in January to 1,333 in November. Sector experts say that lack of clarity, and unannounced halts in the policy have deterred customers from buying EVs in Delhi. The Delhi Electric Vehicle (EV) Policy 2020 officially expired in August 2023 but has remained in force through extensions. In November, Delhi Chief Minister Atishi announced that subsidies and road tax exemptions would be reinstated for vehicles purchased on or after January 1.

Source: https://www.business-standard.com/, December 17, 2024

Tivolt Electric Vehicle And Tata Power Partners To Support EV Charging Infrastructure

Tivolt Electric Vehicles Pvt Ltd, the electric vehicle arm of the Murugappa Group, has entered into a memorandum of understanding (MoU) with Tata Power Renewable Energy Ltd (TPREL) to boost e-mobility in the commercial vehicle sector. This collaboration aims to create a robust EV charging ecosystem by combining Tivolt’s rapidly expanding fleet of small electric commercial vehicles with Tata Power’s extensive expertise in providing diverse EV charging solutions. According to the Memorandum of Understanding, Tivolt Electric Vehicles’ dealerships, public areas, and client locations would benefit from Tata Power Renewable Energy Ltd’s vast experience in establishing and overseeing a vast EV charging infrastructure. The integration of solar energy systems to power Tivolt Electric Vehicles Pvt Ltd dealerships will also be investigated by Tata Power Renewable Energy Ltd.

Source: https://www.news18.com/, December 16, 2024

Electric vehicle transition could create unwanted air pollution hotspots in China and India

While electric vehicles have become a cornerstone of the global energy transition, new research led by Princeton University has demonstrated that refining the critical minerals needed for electric vehicle batteries could create pollution hotspots near manufacturing hubs. Focusing on China and India, the researchers found that national sulfur dioxide (SO2) emissions could increase by up to 20% over current levels if the countries were to fully domesticize their supply chains for electric vehicles. The overwhelming majority of those SO2 emissions would come from refining and manufacturing nickel and cobalt—important minerals for today's electric vehicle batteries. Publishing their findings in Environmental Science & Technology, the researchers argued that countries must think strategically about building clean supply chains as they develop decarbonization plans.

Source: https://phys.org/news/, December 16, 2024 

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Defence & Solar

Preparing For Future Warfare, Indian Defence Forces Looking To Expand Space Assets, Manpower

India's defence forces are actively preparing for future warfare by significantly expanding their space capabilities and manpower. This initiative is driven by a strategic plan presented by the Department of Military Affairs (DMA) to senior officials in the Defence Ministry, including service chiefs and representatives from the Indian Space Research Organisation (ISRO) and the Defence Research and Development Organisation (DRDO). A key component of this strategy involves launching 52 new satellites aimed at enhancing surveillance and communication capabilities. These satellites will support various strategic objectives, particularly focusing on monitoring sensitive regions such as the Line of Actual Control (LAC) with China and borders with Pakistan. The project will see collaboration between government entities and private sector players, reflecting a growing synergy in India's defence and space sectors.

Source: https://www.indiandefensenews.in/, December 18, 2024

India willing to maintain fruitful communication with China: Ajit Doval

National Security Advisor, Ajit Doval on Wednesday highlighted India-China border issues and stated that New Delhi is willing to maintain fruitful communication with Beijing in a pragmatic manner adding that the nation aims to continuously accumulate conditions for "final resolution." The 23rd Meeting of the Special Representatives (SRs) of India and China which was held in Beijing on Wednesday, was attended by Ajit Doval, National Security Advisor (NSA) and Wang Yi, China's Foreign Minister. Over the past five years, with the joint efforts of both sides, relevant issues in the border area have been properly resolved, which is of great significance. India is willing to maintain fruitful communication with China in a pragmatic manner and continuously accumulate conditions for the final resolution of the border issue.

Source: https://www.business-standard.com/, December 19, 2024

India’s Defence PSUs Target Rs 2,100 Crore In Exports For FY 2024-25, Reducing Import Dependence And Boosting Self-Reliance

As India strives to reduce its dependence on imports and strengthen strategic autonomy, nine of the country’s 16 defence Public Sector Undertakings (DPSUs) have set ambitious export targets for Financial Year (FY) 2024-25. Together, these DPSUs aim to export military products worth Rs 2,100 crore, with Hindustan Aeronautics Ltd (HAL) leading the charge with a projected export turnover of Rs 590 crore. In FY 2023-24, India’s total defence exports surged to Rs 21,083 crore, up from Rs 15,918 crore in FY 2022-23, reflecting a steady increase in the country’s defence manufacturing capabilities. Of this, the private sector contributed approximately Rs 15,000 crore, while DPSUs accounted for Rs 6,000 crore, according to the Standing Committee on Defence report presented in Parliament.

Source: By Vansh Gupta, https://swarajyamag.com/, December 16, 2024

US sanctions on Pakistan’s aerospace, defence agency for continuing proliferation of long-range missiles

The United States on Wednesday slapped sanctions on four Pakistani entities, including the state-owned flagship aerospace and defence agency — National Development Complex (NDC) — on charges of them contributing to Pakistan’s ballistic missile programme. In light of the continuing proliferation threat of Pakistan’s long-range missile development, the United States is designating four entities for sanctions which targets proliferators of weapons of mass destruction and their means of delivery, the State Department said. In addition to the NDC, the three other entities are Akhtar and Sons Private Limited, Affiliates International and Rockside Enterprise. All three are based in Karachi, while the NDC is in Islamabad.

Source: https://indianexpress.com/, December 19, 2024

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MSME

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

MSME exports: FIEO seeks 5-year extension of interest equalisation scheme

Exporters body Federation of Indian Export Organisations (FIEO) has urged the government to extend the interest equalisation scheme further for at least five years from December 31, 2024, to support exporters amid the decline in merchandise exports of the country. FIEO President Ashwani Kumar said there is an urgent need to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for at least 5 years, creating a predictable business environment for the exporters. Further, demanding a cap of Rs 10 crore for all MSMEs and 410 tariff lines for a period of five years, Kumar said in a statement that the imposition of cap of Rs 50 lakh per company in the scheme has hit many MSMEs and they are unable to decide on order with non-availability of further subvention.

Source: By Sandeep Soni, https://www.financialexpress.com/, December 17, 2024

CGTMSE: Govt’s collateral-free MSME loan scheme hits 1 crore guarantees

The government’s Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which provides guarantees to banks for collateral-free loans to micro and small enterprises (MSEs), has achieved the 1 crore guarantee mark. The fund, launched in 2000, enables collateral-free loans up to a limit of Rs 5 crore to MSEs with guarantee coverage up to 85 per cent for various categories of loans under the credit guarantee scheme.  The three prominent member lending institutions that played a significant role in hitting 1 crore guarantees were State Bank of India, HDFC Bank and Union Bank, CGTMSE said in a statement on Tuesday.

Source: https://www.financialexpress.com/, December 18, 2024

MSME competitiveness key to doubling exports: CII

Deeper integration into global value chains, enhanced digital trade infrastructure and a focus on building the competitiveness of MSMEs will help India more than double its share in global trade from the present two per cent, CII said on Wednesday. Chairman of the CII national committee on EXIM Sanjay Budhia said that the chamber is committed to working closely with the government to address critical challenges, which hinder manufacturing and export growth. “The journey will require deeper integration into global value chains, enhanced digital trade infrastructure, and a focus on building the competitiveness of MSMEs,” he said. To further unlock the potential of exports, he suggested a common online portal for issue of circulars pertaining to various ports and locations. There is also a need to adopt best practices being followed by developed countries and implement the CAARR (Customs Authority on Advance Ruling) Regulation, 2021 as it would contribute to reduction of global trade costs and bring certainty in duty liability, Budhia said.

Source: https://www.thehansindia.com/, December 19, 2024

High interest rates big deterrent for MSME exporte​rs; working with finmin on this: DGFT

The country's high interest rates are a big deterrent for exporters community and the commerce ministry is working with its finance counterpart to help them at this front, a senior government official said on Wednesday. Director General of Foreign Trade Santosh Kumar Sarangi said that the department of commerce has been "struggling" to convince the finance ministry regarding the relevance of the Interest Equalisation Scheme (IES) and the extent to which it is maintaining manufacturing competitiveness. Sarangi said there are many studies which suggest that very high collateral demand by financial institutions is a big deterrent for MSMEs to access institutional finance and that deters them from getting into the export market.

Source: https://economictimes.indiatimes.com/, December 18, 2024

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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
	Consumer Technology Association. ​7th -10th January 2025 LAS VEGAS, NV https://www.ces.tech/exhibitors.aspx
	XPONENTIAL Euope 18th-20th February 2025 Germany https://www.xponential-europe.com/
	Intelligent Asia 6th- 8th March 2025 Thailand https://www.chanchao.com.tw/IntelligentAsia-Thailand/en/
	Embedded world 2025 11th  – 13th March 2025 Nuremberg, Germany https://www.embedded-world.de/en
	International Battery Seminar & Exhibit 2024 17th -20th March 2025 Orlando, Orlando, USA https://www.internationalbatteryseminar.com/
	IPC APEX EXPO 18th-20th March 2025 Anaheim Convention Center https://www.ipcapexexpo.org/
	Appliance & Electronics World Expo 2024 20 - 23 Mar 2025 Shanghai New International Expo Centre(SNIEC), Shanghai, China https://en.awe.com.cn/
	The International Electronic Circuits 24th -26th March China http://www.cpcashow.com/en/information.asp
	CPCA Show 2025 24- 26 March 2025 http://www.cpcashow.com/en/index.asp

Domestic Events
	ELECTRONICS EXPO 12th -14th DEC 2024 CHENNAI https://shorturl.at/2VFcu
	EV Asia Expo 12th  – 14th February 2025 Gujarat https://www.evasia.in/
	ET Expo and Automotive Electronics & Testing Show 13th- 15th  February 2025 Pune https://et-automotive.com/
	14th Source India 18th-19th  February2025 Chennai https://event.sourceindia-electronics.com/
	16th ELECRAMA 2025 22nd- 26th February 2025 https://elecrama.com/
	Convergence Expo 19th- 21st 2025 March New Delhi https://www.convergenceindia.org/
	India Electronics Expo 2025 19th- 21st March 2025 Pragati Maidan Delhi https://www.indiaelectronicsexpo.com/

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