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| VOL XXVII | ISSUE 19 | 15 October 2026 | Previous Edition |
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How to tame the dragon: India seeks homegrown brands to take on China Business Standard | 01 October 2026 The government is setting aside around ₹5,000 crore within its ₹62,500-crore mobile phone manufacturing scheme to support Indian-owned smartphone brands, with funding available if demand exceeds the allocation. The initiative aims to back around three domestic brands. Eligible companies must have annual revenue of at least ₹1,000 crore, majority Indian ownership and domestic mobile patent ownership. Incentives could reach 9.5% of sales, including support for incremental sales, local sourcing of key components and R&D. Lava International, NxtQuantum Shift Technologies and Mivi have expressed interest. Local sourcing must for ISM 2.0 subsidy: MeitY tells chip companies The Economic Times | 07 October 2026
UP Electronics Component Manufacturing Policy, 2025: Key features, eligibility and implementation Business Standard | 12 October 2026
Why NITI Aayog wants stricter power, water checks before approving data centres The Indian Express | 15 October 2026
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ELCINA Directory of Indian Electronics Industry 2025-26 ㅤ
Companies committed to electronic hardware manufacturing with substantial value addition through production of components, subassemblies, parts, capital goods/machinery for manufacturing of electronics hardware, EMS providers, service providers such as quality/product testing as well as companies designing components and subassemblies are eligible for membership. Equipment companies from all segments of electronics (i.e., Consumer, Telecom, IT, Defence, Industrial, Medical and Automobiles) are welcome to join ELCINA membership once they commence manufacturing, assembling or designing activities in the country. All Payments through local Cheque/Draft favoring ELCINA Display Center 
ELCINA has recently renovated its Display Center to meet the changing environment of the Industry. Small size Display booths are made to accommodate more and more companies Contact: saly@elcina.com |
MeitY is asking companies applying under the ₹1.27-lakh crore India Semiconductor Mission (ISM) 2.0 to source components and raw materials from Indian suppliers wherever available, as part of efforts to build a domestic semiconductor supply chain. The requirement is being discussed with industry ahead of formal applications. The scheme’s machines and materials pillar, covering semiconductor equipment, specialty chemicals, gases and raw materials, is expected to attract significant interest. Applicants must submit certified declarations from domestic vendors confirming that components are manufactured in India.
Uttar Pradesh’s Electronics Component Manufacturing Policy, notified on September 4, 2025, offers financial and administrative support to companies manufacturing specified electronic components in the state. Eligible capital expenditure incurred from April 1, 2025, can be claimed under the framework, which remains valid until March 31, 2031. The policy aims to expand the state’s electronics ecosystem beyond finished-product assembly. Companies approved under the Centre’s Electronics Component Manufacturing Scheme (ECMS) may receive additional state incentives, while other eligible manufacturers can qualify for a separate capital subsidy, subject to conditions.
NITI Aayog has proposed linking data centre incentives to electricity and water availability, environmental safeguards and measurable economic benefits (Read Report). Developers would need to demonstrate grid readiness through a Power Readiness and Ramp-up Plan prepared with DISCOMs and state transmission utilities before approval. For facilities requiring over 20 MW, automated demand-response readiness and integration with State Load Dispatch Centres would be mandatory. The framework also recommends renewable energy with storage, resource-efficiency reporting and allocating infrastructure costs between project developers and shared-grid beneficiaries.
BIS Issues Amendments to Semiconductor and Healthcare Sterilisation Standards
BIS has established Amendment No. 1 to two Indian Standards: IS 14901 (Part 8):2020 for semiconductor discrete devices, covering field-effect transistors, and IS 18240:2023 on terminology for healthcare product sterilisation. Both amendments were established on September 15, 2026, with the existing standards permitted to remain in force without the amendments until March 14, 2027. Bureau of Indian Standards Department of Consumer Affairs | CG-DL-E-05102026-276795 | 25 September 2026 Anti-Dumping Investigation Launched into Copper Tubes from China, Thailand and Vietnam
DGTR has initiated an anti-dumping investigation into imports of internally grooved copper tubes and pipes (IGT) from China, Thailand and Vietnam following a complaint by MetTube Copper India. The applicant alleges that dumped imports are materially retarding the establishment of India’s domestic industry. No anti-dumping or countervailing duties are currently in force on the product; the investigation will determine whether duties are warranted. Ministry of Commerce and Industry Department of Commerce Directorate General of Trade Remedies | AD/OI/055/2026 | 29 September 2026 Anti-Dumping Duties Recommended on PET Films from Bangladesh, China and Thailand
DGTR has recommended definitive anti-dumping duties of US$54–366 per metric tonne for five years on imports of polyethylene terephthalate (PET) films from Bangladesh, China and Thailand. The investigation, initiated following a complaint by Chiripal Poly Films, Ester Industries and Vacmet India, found that dumped imports had suppressed domestic prices and caused material injury to India’s domestic industry. The duties are subject to final notification by the Ministry of Finance. Ministry of Commerce and Industry Department of Commerce DGFT | CASE No. AD (OI) – 48/2025 | 29 September 2026 RELIEF Intervention Extended for Export Shipments Until March 2027 The government has extended the eligibility and validity period under Component II of the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme until March 31, 2027. The extension supports Indian exporters facing logistics disruptions arising from the continuing West Asia crisis, covering eligible shipments for delivery or transshipment under the intervention. All other provisions remain unchanged. Ministry of Commerce and Industry Department of Commerce DGFT | CG-DL-E-03102026-276749 | 01 October 2026 RoDTEP Scheme Extended Until December 31, 2026
The government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme until December 31, 2026, covering DTA units, Advance Authorisation holders, SEZ units and EOUs. Existing rates, value caps and other scheme conditions, as applicable on September 30, 2026, will remain unchanged during the extended period. Ministry of Commerce and Industry Department of Commerce DGFT | CG-DL-E-03102026-276748 | 01 October 2026 BIS Quality Control Order Amended for Hermetic Compressors and Heat Exchangers
The government has amended the Air Conditioner and Related Parts Quality Control Order to include scroll hermetic compressors alongside rotary compressors under the existing provisions. The amendment also exempts up to 6,000 domestically manufactured or imported hermetic compressors and heat exchangers annually for maintenance and sales by certified equipment manufacturers for three years, subject to declarations and record-keeping. Specified pre-existing stocks are also covered by a transitional exemption. Ministry of Commerce and Industry DPIIT | CG-DL-E-06102026-276836 | 05 October 2026 Guidelines Issued for Physical Export Declaration Forms at Non-EDI Customs Locations
Customs authorities have issued procedures for handling physical Export Declaration Forms (EDFs) at non-EDI locations following the Foreign Exchange Management Regulations, 2026. Designated officials must authenticate the forms and transmit them to exporters’ Authorised Dealers through official government email, maintaining internal records to prevent fraud. The RBI is developing a single nodal point to streamline receipt of these forms by dealers. Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs | F.No. 450/25/2013-IV | 05 October 2026 MPMS Guidelines Set Out Incentive Framework for Mobile Phone Manufacturers
MeitY has issued operational guidelines for Target Segment-1 of the Mobile Phone Manufacturing Scheme (MPMS), detailing eligibility, selection and incentive claims for mobile-phone manufacturers. The guidelines specify sales, investment and manufacturing requirements, incentive rates and ceilings, additional incentives for domestic sourcing, minimum manufacturing processes for key components, and the application, approval and disbursement procedures. MeitY, IPHW Division | 07 October 2026 India Notifies Rules of Origin for India-New Zealand FTA
The government has notified the Customs Tariff Rules of Origin for the India-New Zealand Free Trade Agreement, effective October 20, 2026. The rules specify origin criteria, value-content calculations, product-specific requirements and procedures for Certificates of Origin and Origin Declarations to claim preferential tariffs. They also establish provisions for record-keeping, origin verification, post-importation claims and denial or suspension of preferential treatment in cases of non-compliance. Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs | CG-DL-E-12102026-277082 | 12 October 2026 TOP
General Data centre pre-leasing doubles amid rising AI demand Mint | 03 October 2026
China wants to get inside your head The Economist | 06 October 2026
China is accelerating efforts to become a global leader in brain-computer interfaces (BCIs), with government backing for research, companies and medical adoption. Hangzhou-based startup BrainCo showcases wearable technologies including non-surgical bionic limbs and devices claiming to promote relaxation through electrical stimulation. While US-based Neuralink pioneered trials of wireless brain implants that let severely disabled users control computers through thought alone, China is building its own ecosystem. Government measures include ethical guidelines introduced in 2024, hospital billing codes established in 2025, and the launch of the world’s first undergraduate BCI programme at Tianjin University this autumn. Indian manufacturing’s moment may finally have arrived The Economist | 08 October 2026
Data centre demand to outstrip supply as AI usage grows, say experts Business Standard | 13 October 2026
NTT Data CEO Abhijit Dubey identified grid capacity, energy storage, power conversion and skilled workers as major constraints on data centre expansion in India and globally. Speaking at the Bloomberg New Economy Forum 2026, he highlighted shortages of electricians, technicians and specialists in design and construction, noting that their compensation is rising sharply. Dubey said demand and investment capital were not in short supply. Brookfield Asset Management CEO Connor Teskey added that demand for AI computing capacity continues to outstrip supply, a gap he expects to persist beyond 2030. India's data centre policy in works, says Jitin Prasada The Economic Times | 15 October 2026
The government is preparing a national data centre policy, Minister of State for Electronics and IT Jitin Prasada said, describing India as a promising destination for hyperscale facilities. He stressed that data centre expansion must not raise electricity costs for consumers. Prasada also highlighted AI’s potential to improve power-sector efficiency by managing demand and ensuring electricity is available where and when required. A draft national policy released in 2020 proposed infrastructure status and streamlined approvals, but has not been formally notified. TOP
Semiconductors Musk says TSMC won't run Terafab AI chip complex Reuters | 07 October 2026
Elon Musk said Tesla and SpaceX will build and operate the Terafab AI chip complex planned in Texas, rejecting speculation that Taiwan Semiconductor Manufacturing Co (TSMC) would own and run the facility. Musk said TSMC could potentially sublease part of the complex but would have no broader operating role. The project aims to manufacture advanced AI chips. Musk had previously disclosed discussions about possible cooperation with TSMC. Intel CEO Lip-Bu Tan also confirmed that his company, a project partner, would remain involved. Chips critical to India's future, but demand and management key to semiconductor push: N Chandrasekaran The Economic Times | 13 October 2026
DHL joins NX Group in race to build semiconductor logistics in India Mint | 13 October 2026
TN semiconductor ecosystem policy unveiled by CM Vijay aims to make state a hub The Economic Times | 15 October 2026
Tamil Nadu Chief Minister C Joseph Vijay has launched the state’s Semiconductor Ecosystem Policy 2026 to attract investment and strengthen its position as a semiconductor manufacturing hub. The policy, developed by the Industries, Investment Promotion and Commerce Department, aligns with the Centre’s Semicon 2.0 programme. It builds on plans for a ₹175-crore semiconductor and electronics park spanning 422 acres at Maduramangalam in Kancheepuram district. The launch coincided with the unveiling of CapitaLand Data Centre Chennai 01, expanding the state’s digital infrastructure. TOP
Information Technology AI eats into entry-level tech jobs as India's graduates seek work Business Standard | 08 October 2026
US green card freeze could push more technology work to India, but impact remains uncertain The New Indian Express | 09 October 2026
The US suspension of eight technology companies from the Permanent Labour Certification (PERM) programme could encourage more technology work to shift to India, although the immediate impact on Indian IT services firms is expected to be limited. The affected companies include Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini. Former HCL Technologies chief Vineet Nayar said Indian firms could expand into product engineering, cybersecurity, AI implementation and product development instead of relying on sending engineers to US client locations. Existing H-1B visas remain unaffected. India's IT giants face identity crisis as AI disrupts traditional biz model Business Standard | 13 October 2026
Deloitte’s Rohit Tandon believes India’s large IT services companies may struggle to lead the AI transformation because their traditional cost-driven business models could constrain innovation. Citing OpenAI and Anthropic in the US, he argues that new entrants unburdened by legacy structures are more likely to drive the next wave of change. India’s young population and open business environment offer opportunities for new AI companies. Tandon also suggests that major US AI firms’ support for safeguards partly reflects competitive concerns, as cheaper open-weight models challenge their ability to recover heavy investments. TOP
Consumer Electronics Chipmakers flag smartphone affordability concerns, new Indian brands sense opportunity Moneycontrol | 13 October 2026
Rising semiconductor and component costs are putting pressure on smartphone affordability in India, potentially delaying device upgrades and slowing market growth. Qualcomm India president Rajen Vagadia and MediaTek India managing director Anku Jain said higher prices could prompt consumers to use their existing phones for longer. Lava International expects challenging market conditions over the next 12–15 months, with chip prices unlikely to stabilise soon. However, Qualcomm sees an opportunity for new handset brands to challenge established players. GSMA has called for refurbished phones and financing options to improve digital access. Homegrown brands’ revenue may grow 13% to ₹2.04 lakh crore by FY2036: Report The Economic Times - Electronics | 13 October 2026
Revenue of Indian brands across gadgets, devices, appliances and connected cars reached ₹60,000 crore in FY2026 and could grow to ₹2.04 lakh crore by FY2036 at an annual rate of 13%, according to research firm Techarc. Under an accelerated scenario, assuming greater market share in smart and connected products, revenue could rise at 16% annually to ₹2.65 lakh crore by FY2036, reaching ₹1.26 lakh crore by FY2031. The report analysed 129 homegrown brands across multiple product categories. Online mobile sales may not ring loud this Navratri The Economic Times | 15 October 2026
India’s smartphone sales fell 16% year-on-year during ecommerce Navratri sales, according to Counterpoint Research, as rising handset prices and reduced discounts squeezed affordability. Average festive discounts narrowed to 10–25%, against 25–40% last year, amid a 35–40% increase in smartphone prices driven by surging memory chip costs, rupee depreciation and higher freight charges. Brick-and-mortar retailers are also facing a slowdown, with the All India Mobile Retailers Association estimating a 20% sales decline since Navratri began. TOP
Telecom Starlink says India build-out done, awaits final nod Financial Express | 07 October 2026
Ericsson bets on localisation to deepen its India footprint; eyes country as manufacturing hub The Economic Times | 07 October 2026
Jio IPO just the start of next growth phase: Akash Ambani Financial Express | 08 October 2026
The telecom push: Scaling beyond assembly to advanced deep technology Business Standard | 11 October 2026
India’s telecom sector must move beyond network expansion and equipment assembly towards domestic ownership of advanced technologies, according to a KPMG report. Despite its manufacturing scale, the country remains more than 70% import-dependent in critical deep-tech layers. The report highlights the convergence of artificial intelligence and telecom infrastructure, calling for stronger domestic capabilities across the “Telecom Intelligence Stack”. Priorities include high-value product design, semiconductor manufacturing, radio access systems and intellectual property, enabling India to capture greater value from telecom technology rather than relying on assembly. TRAI data: India’s broadband use surges, but rural connectivity gap remains a challenge The Economic Times - Government | 14 October 2026
EV’s & Auto Electronics India's scooter market hits EV tipping point as 1 in 3 sales turns electric Moneycontrol | 12 October 2026
Electric scooters accounted for nearly 33% of India’s scooter registrations in September, up from 22% a year earlier, according to the Vahan dashboard. Electric two-wheeler registrations crossed a record 2.07 lakh units as narrowing upfront price gaps, lower running costs and petrol price concerns encouraged adoption. TVS Motor led registrations with over 54,000 iQube units, followed by Bajaj Auto’s Chetak range with around 48,500. Government support through PM E-DRIVE and state policies has also helped expand the market. Assam plans to take a leaf out of Delhi’s playbook to announce EV sales mandates Mint | 15 October 2026
EV transition to reshape global fuel demand, but India’s ICE fleet set to grow The Economic Times - Auto | 15 October 2026
Battery electric vehicles (EVs) are projected to account for more than 90% of passenger cars by 2050 in markets including China, Europe and Southeast Asia, according to DNV. However, the transition from internal combustion engine (ICE) vehicles will vary across countries, complicating forecasts for road transport oil demand. China leads global electrification, with around 37.5 million passenger EVs already in use, exceeding the combined fleet elsewhere. DNV projects China's EV fleet will surpass 165 million by 2035 and 360 million by 2050. TOP
Defence & Solar India may mandate locally made inverters, domestic battery components under next rooftop solar scheme Mint | 12 October 2026
The government is considering domestic manufacturing requirements for solar inverters and batteries under the next phase of the PM Surya Ghar Muft Bijli Yojana, extending its localisation push beyond solar cells and modules. The follow-up scheme remains at the conceptual stage, with final provisions yet to be decided. The existing ₹75,000-crore programme offers subsidies of up to 40% for rooftop solar installations and targets 10 million households. Proposed measures aim to reduce import dependence, strengthen energy security and encourage domestic production, particularly as India’s battery supply chain relies heavily on imported materials. Army gets largest batch of indigenous loitering munitions The Economic Times | 14 October 2026
The Indian Army has received 450 indigenous Nagastra-1R loitering munitions from Solar Defence and Aerospace Limited, its largest single batch of such systems. Ordered last year under emergency procurement powers, the short-range munitions can carry out kamikaze-style attacks and offer a low-cost option for mass deployment during conflict. The company emerged as the sole technical winner in trials conducted last year. Following Operation Sindoor, the armed forces have prioritised affordable, indigenous platforms that can be produced quickly to strengthen operational preparedness. TOP
MSME India's small businesses chase a new dawn amid reforms and financing push Business Standard | 04 October 2026
Finance Minister Nirmala Sitharaman has urged lenders to tailor financing to MSMEs’ sector-specific needs and adopt cashflow-based lending. The MSME (Amendment) Act, 2026, RBI’s co-lending directions and the Trade Receivables Discounting System (TReDS) could help improve credit access. The Act strengthens provisions for timely payments and faster dispute resolution, while requiring Central Public Sector Enterprises to settle invoices through TReDS. Predictable receivables could help lenders assess cashflows and repayment capacity, supporting working-capital and invoice-backed financing. Large businesses must help MSMEs upgrade, build competitiveness, says MSME secretary Khera Mint | 13 October 2026
MSME Secretary Bharat Khera has urged large companies to help smaller suppliers upgrade technology, develop skills and move up the value chain as India seeks to strengthen manufacturing and export competitiveness. He said production-linked incentive (PLI) schemes have helped create manufacturing champions that have integrated tier-II and tier-III MSME vendors into their supply chains. Khera called on large original equipment manufacturers to extend this support through technology transfer, innovation, vendor development and supply chain integration, helping smaller firms withstand global disruptions and rising costs. Google.org commits $15 million to boost AI adoption among India's MSMEs The Times of India | 14 October 2026
More ELCINA Publications & Reports TOPUPCOMING EVENTS & GENERAL INFORMATION DOMESTIC EVENTS
OVERSEAS SHOWS
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Pre-leased data centre capacity in India more than doubled year-on-year to around 1.2 gigawatts (GW) in June 2026, from 550 megawatts a year earlier, as demand for AI and cloud infrastructure outpaces new supply, according to Cushman & Wakefield. Companies are booking capacity before facilities become operational because construction involves lengthy processes, including securing land, power connections and regulatory approvals. Adani Enterprises has committed to developing 1GW of cumulative data centre capacity, backed by hyperscalers such as Amazon Web Services, Microsoft and Google.
India’s manufacturing sector is showing signs of stronger growth, despite falling short of the “Make in India” programme’s target of raising manufacturing’s share of national income to 25% by 2022. The sector accounted for 16% last year. Manufacturing output rose 9% year-on-year in August, led by cars and electronics. Higher oil prices linked to the Gulf war have weakened the rupee, making imports costlier and exports more competitive. Electronics exports surged 90% in dollar terms, with iPhones shipped to the US contributing significantly.
Tata Sons Chairman Natarajan Chandrasekaran said India has the talent and domestic demand to strengthen its position in the global semiconductor industry, but companies must assess market needs carefully before committing capital. Speaking at Bloomberg New Economy 2026, he highlighted the growing importance of chips for India’s industrial and technological development. His remarks come as Tata Group advances plans for a semiconductor fabrication plant in Dholera, Gujarat, with ASML’s support, and an assembly and testing facility in Jagiroad, Assam, designed to produce up to 48 million chips daily.
DHL plans to establish its first dedicated semiconductor warehouse in India, investing about ₹500 crore from its India expansion programme. The facility will require specialised controls for dust, humidity, temperature, electrostatic discharge, vibration and security. DHL Supply Chain India has been allocated around ₹5,000 crore from the company’s €1 billion India investment announced in November 2025, with roughly 10% earmarked for semiconductor logistics. DHL has also developed air-ride trucks to transport sensitive chipmaking equipment as India prepares to expand domestic semiconductor manufacturing.
Artificial intelligence is threatening entry-level job opportunities for Indian engineering graduates as Global Capability Centres (GCCs) automate routine tasks. Banks such as JPMorgan Chase and Goldman Sachs are using AI for work including loan-document checks, account reconciliation, basic coding and invoicing. India’s IT sector employs around six million people, including 2.4 million in GCCs, which generated about $100 billion in revenue last fiscal year. Although large-scale job losses at GCCs are not yet evident, AI is reshaping recruitment and raising concerns about future employment prospects.
Starlink has completed preparations to launch satellite broadband services in India but is awaiting final government clearances, including security and foreign-investment approvals. SpaceX vice-president Lauren Dreyer said at the India Mobile Congress that the company had established around 20 ground stations with hundreds of antennas and structured its operations to meet Indian security requirements, including keeping subscriber data within the country. Starlink has secured a GMPCS licence and IN-SPACe authorisation, but spectrum allocation and security clearance remain necessary before commercial services can begin.
Ericsson is working with the Indian government to encourage its component suppliers to establish manufacturing operations in India and increase local value addition. CEO for South-East Asia, Oceania and India Andres Vicente said the company has assessed component requirements and domestic availability, and is approaching suppliers about localisation. Ericsson is also expanding India’s role as a manufacturing and export hub. Its partnership with VVDN Technologies has delivered over 15,000 antennas and nine million components for European markets. The company is strengthening local R&D, including ASIC design capabilities in Bengaluru.
Jio Platforms Managing Director Akash Ambani said the company’s proposed IPO would begin a new phase of growth, expressing the ambition to make it India’s largest public offering. Speaking at the India Mobile Congress, he said the focus after listing would be on shareholder value and business expansion. Jio has received SEBI approval for the issue after filing draft papers in June. The IPO is expected to raise around $3.8 billion, largely to repay telecom business borrowings, though no listing timeline has been announced.
India’s internet subscriptions rose 1.96% quarter-on-quarter to 1.114 billion at the end of June 2026, according to TRAI’s latest report. Broadband connections reached 1.0875 billion, accounting for 97.6% of subscriptions. Average monthly wireless data usage per subscriber increased 6.32% to 28.39 GB, while total consumption grew 8.3% to 84,424 petabytes. However, rural internet penetration remained at 49.07 subscriptions per 100 people, against 129.03 in urban areas, highlighting persistent connectivity gaps despite growing digital demand.
Assam is considering electric vehicle (EV) sales mandates as it prepares its new EV Policy 2.0, following Delhi’s move to phase out sales of internal combustion engine two-wheelers from April 2028 and three-wheelers from January 2027. The state’s previous EV policy, launched in 2021, expired in September 2026. Assam Transport Commissioner Manavendra Pratap Singh said the government is open to electrification mandates and plans to address charging infrastructure in the upcoming policy. Assam registers around 500,000–600,000 vehicles annually.
Google.org has committed $15 million to The/Nudge to support the growth and digital transformation of India’s MSMEs through AI-powered solutions. Announced on October 14 in New Delhi, the initiative will address challenges including access to formal credit, regulatory compliance and market discovery. It will also support innovative proposals through an open call and create a multilingual, voice-led platform to train talent in Tier 3 and Tier 4 towns and connect skilled workers with small businesses.
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