VOL XXV, ISSUE 13

15 July 2024

TOP

2. RBI/2024-25/46 A.P. (DIR Series) Circular No. 12 dated July 03, 2024: Online Submission of Form A2: Removal of Remittance Limits

The Reserve Bank of India (RBI) has announced significant changes to enhance the ease of doing business regarding foreign remittances.

Key Updates: 

• No Limit on Online Remittances: Authorised Dealer (AD) banks, both Category-I and Category-II, can now process remittances without any limit based on online or physical Form A2 submissions.

• Compliance Requirements: AD banks must create guidelines, approved by their Board, ensuring compliance with FEMA 1999 and updated KYC regulations.

• Transaction Reporting: Reporting transactions in FETERS will continue as per existing procedures.

• Regulatory Framework: These updates are issued under sections 10(4) and 11(1) of FEMA 1999, and do not affect other required permissions or approvals.

For detailed circulars, members are advised to refer to the RBI/2024-25/46 A.P. (DIR Series) Circular No. 12 July 03, 2024.

3.  RBI/2024-25/47 A.P. (DIR Series) Circular No. 13 July dated 03, 2024: RBI Mandates Form A2 for All Cross-Border Remittances

The Reserve Bank of India (RBI) has issued A.P. (DIR Series) Circular No. 13/2024-25, effective from July 3, 2024, mandating that all Authorized Dealers in Foreign Exchange obtain Form A2 for every cross-border remittance transaction, irrespective of the transaction amount. This directive supersedes earlier guidelines that permitted remittances up to USD 25,000 without Form A2.

Key Points:

1. Regulatory Change: The new directive aims to streamline regulatory compliances and operational procedures under the Foreign Exchange Management Act, 1999 (FEMA).

2. Withdrawal of Previous Circulars: Previous circulars (A.P. (DIR Series) Circular No. 16 dated September 12, 2002, A.P. (DIR Series) Circular No. 55 dated December 23, 2003, and A. P. (DIR Series) Circular No. 118 dated May 07, 2012) allowing remittances without Form A2 have been withdrawn with immediate effect.

3. Compliance Requirement: Authorized Dealers must ensure that all cross-border remittances, including payments for current account transactions, are accompanied by Form A2, which can be submitted in physical or digital form.

4. Legal Framework: The directive is issued under sections 10(4) and 11(1) of FEMA and emphasizes compliance without prejudice to any other permissions or approvals required under other laws.

This measure aims to enhance regulatory oversight and ensure transparency in cross-border transactions, aligning with RBI's efforts to streamline foreign exchange management in India.

For detailed circulars, members are advised to refer to the RBI/2024-25/47 A.P. (DIR Series) Circular No. 13 July dated 03, 2024.

4. CBIC Notification No. 14/2024 – Central Tax dated 10th July 2024: GST Annual Return Exemption for FY 2023-24

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 14/2024 – Central Tax, dated 10th July 2024, providing significant relief for small businesses.

Key Point:

• Exemption: Registered persons with an aggregate turnover up to ₹2 crore in the financial year 2023-24 are exempted from filing the annual GST return for the said year.

This exemption, recommended by the GST Council and enacted by the Commissioner under section 44 of the CGST Act, 2017, aims to ease the compliance burden on small taxpayers.

For further details, members may refer to the official notification [F. No. CBIC-20006/21/2024-GST dated: 10th July 2024].

5. DGFT Trade Notice No. 08/2024-2025 Dated: 10th July 2024: Clarifications on Extended Interest Equalisation Scheme (IES) on Trade Notice No. 07/2024-2025

DGFT, Ministry of Commerce and Industry has issued Trade Notice No. 08/2024-2025, providing important clarifications on the Interest Equalisation Scheme (IES) extension as per Trade Notice No. 07/2024-2025.

Key Points:

• Threshold Limit: Interest Equalisation capped at ₹1.66 Crore per IEC from 1st July 2024 to 31st August 2024.

• Eligible Exporters: Extension applies only to MSME Manufacturer Exporters eligible for a 3% IES benefit.

• UIN Requirement: No need for revised UIN if already generated for FY 2024-2025.

These clarifications aim to ensure smooth implementation of the IES extension and address the concerns raised by banks and exporters. Members are urged to review these details promptly.

For detailed information, members may refer to the DGFT Trade Notice No. 08/2024-2025 Dated: 10th July 2024.

6. CBIC-20001/4/2024 - GST dated 11th July 2024: Clarification on various issues pertaining to taxability and valuation of supply of services of providing corporate guarantee between related persons.

The GST Policy Wing has issued a clarification on the taxability and valuation of corporate guarantees between related persons under Rule 28(2) of the CGST Rules.

Key points include:

• Background: The rule was retrospectively amended to specify how corporate guarantees to banking or financial institutions by related entities are taxed.

• Taxability: Corporate guarantees were taxable even before the recent rule change, with valuation rules differing based on issuance dates (pre- and post-26th October 2023).

• Valuation: Post-amendment, the valuation is set at 1% of the guaranteed amount per annum or actual consideration, whichever is higher.

• ITC: Recipients can claim full Input Tax Credit regardless of loan disbursal timings.

• Export of Services: Rule 28(2) does not apply to exports of corporate guarantee services between related persons.

• Implementation: Field offices are urged to disseminate the clarification via trade notices for compliance.

This update ensures uniformity in GST application for corporate guarantees, promoting clarity and compliance across sectors.

For detailed information, refer to the Circular issued on 11th July 2024 by the GST Policy Wing.

 7. Circular No. F. No. CBIC-20001/4/2024-GST dated 11th July 2024: Mechanism for refund of additional Integrated Tax (IGST) paid on account of upward revision in price of the goods subsequent to exports

The GST Policy Wing has introduced a mechanism for refunding additional Integrated Tax (IGST) paid due to upward revisions in the prices of exported goods after their exportation.

Key Points:

• Background: Exporters faced challenges when prices of exported goods were revised upwards post-exportation, requiring them to pay additional IGST with interest. However, no mechanism existed for refunding this additional IGST.

• Procedure for Refund:

• Exporters can now file a refund application electronically in FORM GST RFD-01 on the GST common portal.

• Until a separate category is developed, they should file under the category "Any other" with specified remarks.

• Required documents include shipping bills, original invoices, contract documents, and proof of additional IGST payment with applicable interest.

• Processing:

  • The refund application will be processed by the jurisdictional GST officer based on submitted documentary proof.

  • GSTN will provide validated shipping bill details and IGST amounts to facilitate processing.

• Minimum Amount: Refunds will not be processed for amounts less than Rs. 1000.

• Time Limit: Applications must be filed within two years from the relevant date, as per CGST Act provisions.

• Verification and Refund Issuance:

• Proper officers will verify the completeness and eligibility of refund claims.

• Refund sanction orders will be issued in FORM GST RFD-06, with detailed speaking orders, followed by payment orders in FORM GST RFD-05.

• Downward Price Revisions: If prices decrease post-exportation, exporters must refund the excess IGST received, along with interest.

This procedure aims to streamline the refund process for exporters affected by price revisions after exportation, ensuring compliance and facilitation of refunds as per GST rules.

For complete details, members may refer to Circular No. F. No. CBIC-20001/4/2024-GST dated 11th July 2024 issued by the GST Policy Wing, Ministry of Finance, Government of India.

8. Notification No. 27/2024-Customs dated 12th July 2024: Government Exempts SEZ Imports from GST Compensation Cess

The Government of India, Ministry of Finance, has issued Notification No. 27/2024-Customs dated 12th July 2024. This notification exempts all goods imported by units or developers in Special Economic Zones (SEZs) for authorized operations from the Goods and Services Tax (GST) compensation cess.

Key points:

• Notification: No. 27/2024-Customs issued by the Ministry of Finance, Government of India, dated 12th July 2024.

• Exemption: All goods imported by a unit or developer in a Special Economic Zone (SEZ) for authorized operations are exempted from the entire Goods and Services Tax (GST) compensation cess.

• Legal Basis: The exemption is granted under sub-section (1) of section 25 of the Customs Act, 1962, read with sub-section (12) of section 3 of the Customs Tariff Act, 1975. This is based on recommendations from the Council and is deemed necessary in the public interest.

• Effective Date: The notification will be effective from the 15th July 2024 onwards.

This notification aims to support and incentivize operations within Special Economic Zones by relieving units and developers from the GST compensation cess on imported goods used for authorized activities.

For complete details, members may please refer to Notification No. 27/2024-Customs dated 12th July 2024 issued by the Ministry of Finance, Government of India.

         INDUSTRY  SCAN                                                                             

General

Govt may chip in further to aid semiconductor sector

As the Centre’s $10-billion production-linked incentive (PLI) scheme to promote semiconductor fabrication in India gains momentum, S Krishnan, secretary, ministry of electronics and information technology (MeitY), on Monday said there could be further support for the semiconductor industry. While addressing the Semiconductor Ecosystem Conference, organised by the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) with Software Technology Parks of India (STPI) in Pune, Krishnan emphasized the importance for India, given its size, not to rely entirely on semiconductors from abroad. The government has committed Rs 70,000 crore for various programmes, but more needs to be done as the industry would need 250-300 suppliers of gases, equipment and high-precision machinery to laundries that can provide clean room workwear and each of them made by different manufacturers.  The next phase of semiconductor policy will be looking at all these aspects and giving adequate and attractive options to various segments of the semiconductor industry, Krishnan said.

Source: By Geeta Nair, https://www.financialexpress.com/, July 16, 2024

MediaTek India Rolls Out ‘MediaTek Connect Program’

MediaTek, one of the world’s leading fabless semiconductor company powering nearly 2 billion connected devices a year, launched MediaTek Connect Program dedicated to the community of technology and gadget enthusiasts. MediaTek Connect will enable the community to discover and engage with MediaTek's latest innovations. The discussions at the launch event sparked insightful and engaging conversations on how innovative technologies from MediaTek are driving faster adoption of smart ecosystems, smartphones and smart devices in India. The event featured an extensive showcase of the newly launched CMF Phone 1, the first smartphone in India powered by MediaTek Dimensity 7300 chipset. This ultra-efficient 4nm-class chipset offers the industry’s best-in-class power efficiency and next-gen capabilities, ensuring effortless multitasking, transcendent captures, excellent performance and upgraded AI-enhanced computing.

Source: MediaTek PR

Over 9 Billion eSIM-capable Devices to be Shipped by 2030

Global xSIM-capable device shipments will exceed 9 billion units between 2024 and 2030, growing at a 22% CAGR during the period, according to Counterpoint’s latest eSIM Devices Market Outlook report. The projection includes all form factors, including hardware-based eSIM (eUICC), iSIM (iUICC), nuSIM and Soft SIM. The industry has moved past an inflection point after the release of the US-exclusive eSIM-only iPhone in 2022 and is now entering a period of hyper growth. This is evidenced by the growing number of OEMs launching eSIM-capable devices. Currently, smartphones have the highest eSIM adoption rate on the consumer side. However, categories such as Connected Cars, Gateways and Routers and Drones, where physical SIMs can be very difficult to manage, stand to greatly benefit from eSIM or iSIM-based connectivity. In the long run, xSIM will become the default form factor for these industries.

Source: Counterpoint PR

UP Government’s Decision to Offer Incentives for Hybrid Vehicles Flusters EV Firms

The government of Uttar Pradesh’s recent decision to offer incentives for hybrid vehicles has vexed electric vehicle manufacturers. The decision has created a rift between the car companies such as Tata Motors who are now completely focused on manufacturing EVs. On the other hand, Maruti Suzuki and Toyota are concentrating on the growth of hybrid cars. As per media reports, sales of EVs plummeted to 13.5 percent and witnessed a slight drop in May. In the January-June period, domestic sales reduced to 20 percent growth, which is around 46,845 units. The statistics reveal that growth is down as compared to 135 percent escalation in the same period last year that forced Tata and other firms to revamp their expectations. Highlighting the impact, union commerce minister Piyush Goyal stated that the matter is of serious concern.Mahindra and Tata are yet to reveal their official statement and strategies to the media. In fact, it was also reported that the UP government held a meeting with several car-makers to form strategies to promote and boost growth of EVs.

Source: https://circuitdigest.com/, July 12, 2024

TOP

Information Technology

Accenture to Enhance Retail Technology Transformation Capabilities with the Acquisition of Logic

 Accenture has entered into an agreement to acquire Logic, a retail technology services firm that works with retailers to drive customer loyalty, boost revenue and increase agility through the use of technology. With strong capabilities in merchandising, stores, digital, analytics and cloud, the acquisition of Logic will further enhance Accenture’s ability to drive technology transformations for retail clients globally. With a deep understanding of the retail industry and operational management, Logic will bring approximately 800 professionals with specialized skills in retail-focused technical strategies to Accenture Technology. Founded in 1997 and headquartered in Minneapolis, Minnesota, Logic has offices in 11 countries that serve more than 150 retail clients worldwide.

Source: https://newsroom.accenture.com/, July 16, 2024

Bharti Airtel Foundation launches scholarship to support students in technology

Bharti Airtel Foundation, the philanthropic arm of Bharti Enterprises, is launching a merit-cum-means based scholarship programme aimed at supporting students from diverse socio-economic backgrounds pursuing technology-based UG engineering and integrated programmes (up to five years) in the top 50 National Institutional Ranking Framework (NIRF) (Engineering) colleges, including IITs. The scholarship will be provided to students with an annual family income not exceeding Rs 8.5 lakh. ‘Bharti Airtel Scholarship Program’ is mainly focused on women students. The scholarship, starting with 250 students this year, will be applicable to students eligible for admission in August 2024. The fully funded scholarship is envisaged to dissolve the financial barriers that hinder access to quality education for meritorious students, especially from disadvantaged backgrounds, it added.

Source: https://indianexpress.com/, July 16, 2024

AWS and iTNT Hub collaborate to nurture generative AI innovation among startups in Tamil Nadu

 Amazon Web Services (AWS) India Private Limited has announced that it is supporting Tamil Nadu Technology (iTNT) Hub to launch a generative Artificial Intelligence (AI) startup hub program, that will focus on accelerating the development of generative AI solutions for public-centric initiatives through the startup ecosystem in Tamil Nadu. The program will enable startups to collaborate with the industry to build public sector-focused solutions using generative AI, and will solicit and shortlist startups building solutions for government, healthcare, education, and non-profit sectors operating in the AI, generative AI, and deep-tech space. This new initiative was announced during ‘Generative AI Startup–Venture Capital’ mixer event held by AWS and iTNT Hub in Chennai. iTNT as an innovation hub was established by the Ministry of Electronics and Information Technology (MeitY, Government of India), and Information Technology and Digital Services Department (IT&DS, Government of Tamil Nadu), with industry support.

Source: https://indiatechnologynews.in/, July 15, 2024

  TOP

Consumer Electronics

Samsung in talks with component partners to boost ops in India: TM Roh

Samsung views India as a crucial market with Noida and Bengaluru becoming one of its biggest R&D centres, and is in talks with Indian component partners to strengthen its operations, a senior official said. Samsung Electronics President and Head of Mobile eXperience (MX) Business TM Roh was speaking at a media roundtable here on the sidelines of Samsung Unpacked 2024. In January this year, Roh termed India as one of Samsung's important manufacturing bases and said that the Korean electronics major will start manufacturing laptops this year at its Noida facility. At Samsung Unpacked 2024, the tech giant expanded its wearables portfolio with the launch of Galaxy Ring, a health and wellness wearable device powered by Galaxy AI. It also unveiled its sixth generation foldable smartphones Galaxy Z Fold6 and Z Flip6, along with Galaxy Buds3 and Galaxy Buds3 Pro.

Source: https://economictimes.indiatimes.com/, July 16, 2024

LG drives in infotainment, smart solutions for your car

LG Electronics, India's largest home appliances maker, is set to diversify into the country's flourishing automotive market by offering its advanced auto parts such as cockpit electronics, connectivity solutions and infotainment systems through partnerships with automakers like Hyundai, Kia, Renault and Volkswagen. The South Korean electronics company has also built a team of 2,500 engineers in Bengaluru for developing such products for a global clientele, LG's global head for the business Valentin Janiaut said. LG has introduced electric vehicle (EV) charging solutions in Korea and the US, and is "paying attention" to India for a rollout since it is also a fast growing EV market, a company spokesperson said separately. "However, nothing is confirmed yet," the spokesperson said. Janiaut, software solutions task leader for vehicle component solutions business at LG said Hyundai and Kia may introduce LG's PlayWare entertainment platform for in-car infotainment systems in India by next year.

Source: By Writankar Mukherjee, https://economictimes.indiatimes.com/, July 10, 2024

Noble Group to Invest Rs 350 Cr in Ghiloth Manufacturing Unit

Noble Group, a prominent player in consumer electronics and appliances, is set to invest Rs 350 crore in a new manufacturing facility in Ghiloth. This substantial investment aims to enhance the company's production capabilities specifically for air coolers and washing machines. The upcoming facility is expected to significantly increase Noble Group's annual production capacity, scaling up from 400,000 to 1 million units for washing machines and from 300,000 to 600,000 units for air coolers. This strategic expansion aligns with Noble Group's goal to secure a 15 percent market share in the air cooler segment and an 8 percent market share in the semi-automatic and fully automatic top-load washing machine segments. The decision to invest follows the Indian government's supportive policies under the "Make in India" initiative, including initiatives like the Bureau of Indian Standards (BIS) and Production Linked Incentive (PLI) schemes.

Source: https://www.indianretailer.com/, July 16, 2024

Global Smartphone Market Grew 6% YoY in Q2 2024; Highest YoY Growth in Last 3 Years

Global smartphone sell-through volumes grew 6% YoY in Q2 2024 to record the highest YoY growth in last three years, according to preliminary numbers from Counterpoint Research’s Smartphone 360 Monthly Tracker. Also, this was the third consecutive quarter of market growth, driven by improving consumer sentiment and macroeconomic factors. The Europe and Latin America (LATAM) markets grew the fastest in Q2 2024, both recording high double-digit YoY growth numbers, as consumer sentiment and purchasing activity continued to improve compared to 2023 levels. In China, Huawei’s comeback and an early start to the 618 shopping festival ensured the continuation of gradual recovery. Emerging markets, especially in LATAM and Asia, performed better than mature markets. The top five brands remained the same as in earlier quarters. Samsung retained the top spot in Q2 2024, helped by strong sustained sales of the AI-focused Galaxy S24 series and an early refresh of the popular Galaxy A series, whose models emerged as the bestsellers in entry-level to mid-price bands. Samsung also led the sales of GenAI-capable Android smartphones and is expected to further capitalise on it with its new-generation foldables.

Source: https://www.counterpointresearch.com/, July 15, 2024

TOP

Telecom

Scindia meets telecom panels to prepare self-reliance road map

Communications minister Jyotiraditya Scindia on Monday met three advisory groups on satellite, communications and electronics ecosystem and original equipment makers (OEMs) to discuss the issues related to satellite communications and telecom equipment. In his first formal interaction with the industry stakeholders after taking charge, Scindia said the idea is to get feedback from the industry on the pain points so that they could be addressed, as well as initiatives which can be taken to ensure the sector can grow at a faster rate. The meeting was attended by executives of companies such as Airtel, Jio, STL, Hughes, Nelco, OneWeb, among others. Telecom secretary Neeraj Mittal, member finance Manish Sinha, member technology Madhu Sinha, and other DoT officials were also part of the meeting. Industry executives said the discussion mostly revolved around the broader policy framework in the satcom industry, satellite spectrum, the telecom Act implementation and the future road map.

Source: By Jatin Grover, https://www.financialexpress.com/, July 16, 2024

DoT issues demand notices to Airtel, Vodafone Idea, and Reliance Jio for 5G spectrum payments

The Department of Telecommunications (DoT) on Tuesday issued demand notices to India’s three private carriers — Bharti Airtel, Vodafone Idea (Vi) and Reliance Jio — which bought 5G airwaves in the recent 5G spectrum auction, calling on them to make the payments by July 26. The operators have been given the option to make the payments in 20 equal annual instalments. Alternately, they can pay the entire sum upfront or make a part-upfront payment (which can be a multiple of complete years with a minimum of two years). In India’s second 5G airwaves sale that concluded June 26, Bharti Airtel was the biggest spectrum buyer, lapping up 97 MHz of 5G airwaves worth Rs 6,856.76 crore. Vi was the second-biggest buyer, acquiring 30 MHz of 5G spectrum for Rs 3,510.40 crore. Telecom market leader Reliance Jio bought a modest chunk of 5G airwaves worth Rs 973.62 crore, its lowest-ever in an auction.

Source: https://economictimes.indiatimes.com/, July 16, 2024

Instead of merger plan, operations of listed MTNL will be handed to BSNL, says report

Instead of merging the two state-run telecom companies BSNL and MTNL as originally proposed, the government may hand over operations of the listed but smaller MTNL to much bigger BSNL, Times of India reported, citing sources. The new proposal, will first be considered by the Committee of Secretaries (CoS) and then be sent to the Union Cabinet for approval, it added. For MTNL, which services metros Delhi and Mumbai, this means help from BSNL, while for BSNL it would allow a pan-India presence while working out a revival plan, the report said. The Department of Telecommunications (DoT) is looking to fast-track this handover so each company can receive its much-needed boost in business. However, both companies have been unable to capitalize on the broader sector boom. Notably, despite its losses, MTNL's shares have remained in the green, up 139 per cent year-on-year (YoY). They closed at ₹46.3 on July 12. This may change once BSNL takes over operations, as MTNL itself would only be left with the land and buildings.

Source: https://www.livemint.com/, July 14, 2024

DO or Die for BSNL, TCS Join Forces to Challenge Jio and Airtel

DO or Die for BSNL, TCS Join Forces to Challenge Jio and Airtel, With recent price hikes from major telecom players, Mukesh Ambani’s Jio and Bharti Mittal’s Airtel, the telecom landscape in India is set for a shake-up. This upheaval is fueled by a significant partnership between Tata Consultancy Services (TCS) and Bharat Sanchar Nigam Limited (BSNL). Together, they plan to bring 4G internet services to 1,000 villages across India, potentially providing a robust alternative to Jio and Airtel. This article explores how this collaboration could disrupt the current market dynamics and benefit consumers. In a move that has stirred consumer unrest, Jio and Airtel recently increased their recharge plan prices. Jio’s prices saw a hike of 12 to 25 percent, Airtel’s rose by 11 to 21 percent, and Vodafone Idea (Vi) followed suit with a 10 to 21 percent increase. These changes, effective from early July, have not been well received by users, leading to a surge in interest in BSNL’s more affordable options.

Source: https://www.tgnns.com/, July 16, 2024

 TOP

EV’s & Auto Electronics

UP caps incentive for electric cars, revised notification deepens suspense over hybrids

Electric cars will be eligible for upfront incentives of 15% of the ex-factory price capped at Rs 1 lakh per vehicle as per the revised notification of the Uttar Pradesh government. The state government has earmarked an outlay of Rs 250 crore to subsidise 25,000 electric four-wheelers/ cars under the scheme. UP has additionally set aside Rs 100 crore to extend incentives of Rs 5000 per electric two-wheeler for 200,000 units. The subsidy scheme will be valid till 2027, or till the allocated funds are exhausted, whichever is earlier. While the state government has specified benefits for electric two-wheelers, three-wheelers, four-wheelers and buses under this scheme, there is no mention of hybrids. A copy of the notification dated July 15, 2024 has been reviewed by ET. As per the notification 30,000 electric three-wheelers will be eligible for incentives amounting to 15% of the ex-factory price or Rs 12,000 per vehicle, whichever amount is lesser. The state has budgeted Rs 36 crore to incentivise purchase of electric three-wheelers.

Source: By Sharmistha Mukherjee, https://economictimes.indiatimes.com/, July 16, 2024

VinFast Delivers Nearly 21,800 Electric Vehicles in First Half of 2024, Up 92% YoY

VinFast Auto Ltd a pure-play electric vehicle ("EV") manufacturer with the mission of making EVs accessible to everyone, delivered 21,747 electric vehicles in the first half of 2024, a significant 92% increase over the same period in 2023. For the second quarter of 2024, VinFast delivered 12,058 vehicles, representing an increase of 24% quarter-over-quarter and an increase of 26% compared to the same period of last year. While the second-quarter delivery results were encouraging, ongoing economic headwinds and uncertainties in different macro-economies and global EV landscape necessitate a more prudent outlook for the rest of the year. The Company now anticipates delivering approximately 80,000 electric vehicles in 2024, compared to 34,855 vehicles delivered in 2023, or 2.3x year-over-year growth.

Source: https://www.prnewswire.com/, July 12, 2024

India Needs 2 Lakh EV Skilled Workers by 2030: SIAM

Indian automotive industry will need up to 2 lakh skilled people by 2030 to meet the government's vision of 30 per cent electric vehicle adoption, the Society of Indian Automobile Manufacturers said on Tuesday. A total talent investment of Rs 13,552 crore is expected for hiring and training the workforce. Aggarwal, who is also MD & CEO, Volvo Eicher Commercial Vehicle Ltd, pointed out the need for specialised domain skills in the areas of battery technology, powered electronics and motor design. "To keep the pace of global trends and make our auto industry a globally competitive industry, there is an urgent need that our workforce be equipped with new skills by upskilling, rescaling and skilling them," he added. Detailing the gap, SIAM Vice President Shailesh Chandra said, "By 2030, India will need nearly one to two lakh people with specific skills to meet the government's mission of 30 per cent EV adoption."

Source: https://money.rediff.com/, July 12, 2024

China asks WTO to set up panel for US electric vehicle subsidies dispute

China has requested the World Trade Organization set up an expert panel to help settle a dispute over electric vehicles subsidies under the U.S. Inflation Reduction Act, the country's commerce ministry said on Monday. The world's No.2 economy opened the WTO dispute in late March after the Biden administration passed the IRA, a wide-ranging law that provides billions of dollars in tax credits to help consumers buy EVs and firms to produce renewable energy, as the White House looks to decarbonise the U.S. power sector. China has failed to reach a solution with the U.S. through consultations that would safeguard the rights and interests of its EV industry, the ministry said in its statement, and so is advancing its case at the WTO. The IRA "excludes products from WTO members such as China, artificially sets trade barriers, and pushes up the costs of green energy transition", China's commerce ministry said.

Source: https://www.reuters.com/, July 15, 2024

TOP

Defence & Solar

India unveils light tank designed for operations near the China border

India unveiled a prototype Zorawar light tank this month, as defense officials seek nimbler armored fighting vehicles suitable for the mountainous terrain along the border with China, where violence broke out in mid-2020. Delhi released a request for information for new light tanks in April 2021, and it is unprecedented for India to produce a prototype armored vehicle so quickly. The Zorawar results from public-private collaboration, with Larsen & Toubro (L&T for short) cooperating with the state-run Defence Research and Development Organisation, or DRDO. It was unveiled at L&T’s plant in Hajira, Gujarat. The Indian Army has so far ordered 59 tanks, but Samir V. Kamath, DRDO’s chief, said the Zorawar would not be ready until 2027. Kamath noted the prototype had been produced in just a two-and-a-half-year period.

Source: https://www.defensenews.com/, July 15, 2024

Defence stock Apollo Micro Systems hits upper circuit after getting order from Indian Army

Apollo Micro Systems shares witnessed strong buying during morning deals as the company has declared receiving orders from the Indian Army. The defense and aerospace stock today opened with an upside gap at ₹109.76 apiece on NSE and touched 5 percent upper circuit within a few seconds of the Indian stock market's opening bell. The small-cap company had informed Indian stock market exchanges on Friday last week about the receipt of the Make II project for the procurement of a Vehicle Mounted Counter Swarm Drone System from the Indian Army. The company said that it was the first Make II project award for the defense company. The company said that there will be no cost involvement in this Make II project. This project is a very prestigious and first Make II project for the Company. The company is happy to share that the systems developed out of it are ‘state of the art’ and highly futuristic in nature.

Source: https://www.livemint.com/, July 15, 2024

Morocco welcomes indian navy visit, fostering evolving defence partnership

Indian Naval Ship TABAR, a flagship frigate of the Indian Western Fleet, concluded a significant port call at Casablanca port from July 8-11,, marking a pivotal moment in Indo-Moroccan naval relations. According to a press release from the Indian embassy, the visit aimed to foster deeper diplomatic ties, underscoring India's strategic commitment to enhancing its partnership with Morocco across various domains. Ambassador of India to Morocco Rajesh Vaishnaw began his visit to INS TABAR on July 8, where he was welcomed onboard by Commanding Officer Captain MR Harish. During the visit, Harish met with senior Moroccan military officials, focusing on mutual defense interests and strategic cooperation. Activities such as cross-deck visits, a yoga session, and a friendly volleyball match were organized, highlighting the cultural exchange and camaraderie between naval personnel of both nations.

Source: https://www.indiandefensenews.in/, July 16, 2024

TOP

MSME

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

Budget 2024: Subsidies On Green Energy, Tax Benefits On MSMEs Wishlist From FM Sitharaman

MSMEs, making up an impressive 97.7% of all enterprises in the country are the backbone of the Indian economy and tomorrow’s large business houses. It accounts for nearly 32% of India’s GDP and is the second largest employer after agriculture, particularly in the semi-urban and rural areas. Within the broad gambit of the MSME sector, Microenterprises constitute nearly 96% of overall MSME units. Optimising the performance of MSMEs is, therefore, a critical need in the economy. They should be motivated to upgrade technology, adopt ESG (Environmental, Social and Governance) best practices, and standardise products to enhance their global competitiveness. The major areas in which MSMEs can make a huge difference are in increasing energy efficiency. Budgetary measures for the push of energy-efficient equipment or installations for alternative sources of energy—solar or wind—are essential. These shall reduce energy consumption and cut down on operational costs, making MSMEs more competitive. A combination of debt and equity instruments must be used to bring MSMEs, particularly the micro sector, within the fold of the formal financial sector. Venture capital should focus on sectors where the MSMEs function and offer them funding to use green technologies in trade, manufacturing, and services.

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

Industry body urges FM Sitharaman to continue 45-day MSME payment rule

Industry body SME Chamber of India has urged Finance Minister Nirmala Sitharaman to continue the 45-day MSME payment rule for corporates and other buyers. According to Section 43B(h) of the Income Tax Act, introduced through the Finance Act 2023, if a larger company does not pay an MSME on time -- within 45 days in case of written agreements -- it cannot deduct that expense from its taxable income, leading to potentially higher taxes. The government in last year's Budget added a new clause under Section 43B of the Income Tax Act to address the challenge of delayed payments faced by MSMEs in the country. The industry body argued that this provision serves as a powerful incentive for companies to adhere to payment timelines, thereby supporting the financial health of MSMEs.

Source: https://www.business-standard.com/, July 14, 2024

MSMEs urge RBI to allow P2P lending, crowdfunding to overcome credit gaps

The Micro, Small, and Medium Enterprises (MSMEs) industry has urged the Reserve Bank of India (RBI) to develop a regulatory framework for peer lending and crowdfunding to overcome credit gaps, according to an industry insider who was part of a meeting with senior central bank officials in Mumbai last week. "Given the proven efficacy of these frameworks, it is imperative for India to adopt a comprehensive regulatory framework encompassing both equity-based crowdfunding with an upper limit of Rs 10,000 for an investor to invest in MSMEs and debt-based crowdfunding models," the industry source said. "Such a framework would empower MSMEs by providing them with the choice to either raise funds by offering equity shares or by securing debt financing, thereby catering to their diverse financing needs.” A recommendation paper by the India SME Forum submitted to the RBI said the finance gap for MSMEs in India has been steadily widening in recent years, posing significant challenges with a credit gap of $530 billion for this sector.

Source: By Harsh Kumar, https://www.business-standard.com/, July 16, 2024

  TOP

ELCINA EVENTS , ACTIVITIES & SERVICES 

TOP

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….

TOP

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/

TOP