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| VOL XXVII | ISSUE 17 | 15 September 2026 | Previous Edition |
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Semicon 2.0, ECMS & MPMS together can build end-to-end electronics value chain: ELCINA The Economic Times | 02 September 2026 ELCINA has welcomed the Government’s Semicon 2.0 initiative, describing it as an opportunity to link India’s expanding electronics manufacturing sector with a stronger domestic semiconductor and component ecosystem. It said Semicon 2.0, ECMS and the Mobile Phone Manufacturing Scheme (MPMS) could together create an integrated value chain. While Semicon 2.0 focuses on chip design, manufacturing, packaging, equipment and materials, ECMS supports component production and MPMS can generate demand for domestic inputs through greater mobile-phone manufacturing and value addition. Government eases import ban on high-tech electronics The Economic Times | 02 September 2026 The government has agreed to temporarily allow imports of select high-value electronic components that are now being manufactured domestically, responding to industry concerns over limited local capacity and higher costs. A quota- and time-bound mechanism has already been introduced for compressors and inner-grooved copper tubes used in air-conditioners and refrigerators. A similar arrangement is being considered for high-value smartphone components, including displays. Industry believes temporary imports can help manufacturers remain competitive while domestic production scales up and supply chains mature. TOP
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ELCINA Directory of Indian Electronics Industry 2025-26 
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 |
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GST Rationalisation in Electronics and Green Technologies
Ministry of Finance | 10 September 2026 Seeking Comments on Proposed Non-Preferential Rules of Origin The DGFT has proposed amendments to Para 2.93 of the Handbook of Procedures, 2023, to comprehensively prescribe Rules of Origin (Non-Preferential) for both exports and imports. Exporters, importers, trade bodies and other stakeholders have been invited to submit comments and suggestions within 15 days of publication of the Trade Notice. Ministry of Commerce & Industry, DGFT | 14 September 2026 TOP
General Syrma JV inaugurates state-of-the-art high-reliability electronics manufacturing facility in Bengaluru Business Standard | 02 September 2026
Billion dollar boom: Jefferies identifies six sectors driving ‘India’s New Industrial Revolution’ The Times of India | 10 September 2026 The global AI semiconductor market is projected to grow from USD 65.8 billion in 2025 to USD 255.9 billion by 2035, reflecting a 14.55% CAGR during 2026–35. Growth is being driven by rapid expansion of hyperscale AI data centres and rising demand for specialised chips. Increasing workloads from large language models and generative AI are boosting demand for GPUs, NPUs and custom AI accelerators. At the same time, advances in chip architecture, memory technologies and packaging are improving the performance and efficiency of AI semiconductors. India to set up 4 critical mineral parks for REEs, magnets, lithium and nickel Moneycontrol | 11 September 2026 The government is developing four critical mineral processing parks across Andhra Pradesh, Gujarat, Maharashtra and Odisha, each centred on a distinct mineral ecosystem. Andhra Pradesh will focus on rare earth elements, titanium and zirconium; Gujarat on rare-earth permanent magnets; Maharashtra on lithium and allied sectors; and Odisha on nickel. Three states have already submitted detailed project reports. The government is also working to strengthen overseas access to critical minerals, with mineral officers appointed at Indian embassies in mineral-rich countries to support domestic companies seeking international opportunities. Huawei launches 3D data center in China Tech in Asia | 15 September 2026
Semiconductors AI Semiconductor Market to Hit $255.90 Billion by 2035 The Economic Times - Data Centers | 09 September 2026
India’s semiconductor sector attracts $1.4 billion in funding across 281 companies The Times of India | 13 September 2026 India’s semiconductor sector has attracted $1.4 billion in cumulative equity funding across 281 funded companies, with nearly half raised since 2025, according to Tracxn data. Funding since 2025 has reached $701 million, including $228 million in 2026 so far. The sector currently has 3,557 companies, of which 142 have raised equity funding. The data comes as India prepares to host SEMICON India 2026 from September 17–19 in New Delhi. HORIBA India may chip in with local semicon gear as demand builds Business Standard | 14 September 2026
Information Technology IT services hiring demand hits 18-month high in September: Xpheno Business Standard | 01 September 2026 India’s IT services sector is showing signs of a hiring recovery after an extended period of subdued demand. Active openings in the IT services cohort have risen to 57,000 in September, the highest level since February 2025, according to staffing firm Xpheno. This has taken overall technology-sector hiring demand to 117,000 roles, close to the March 2026 peak of 119,000. IT services currently account for the largest share of openings, followed by global capability centres (GCCs). Software product firms have 19,000 openings, though demand in the segment has declined 17% month-on-month. AI leads salary growth in India as employers pay more for scarce skills Business Standard | 02 September 2026 India’s salary trends are increasingly favouring specialised skills over established roles. According to the latest foundit Insights Tracker, AI recorded the strongest year-on-year salary growth at 12%, followed by computer and network security and semiconductors at 9% each. The gap becomes clearer over two years: AI salaries have grown 22% between 2024 and 2026, while pay in areas such as computer hardware and e-commerce has declined. IT services salaries, meanwhile, remained largely unchanged. The trend suggests that employers are paying a premium for skills that address specific capability gaps. ‘Move faster’: Nvidia’s Jensen Huang has an AI message for India, the world’s leading IT power The Economic Times | 03 September 2026
Consumer Electronics Memory Chip Prices Force Samsung India To Cut Jobs Of Up To 25% Of Consumer Electronics Staff Mint | 09 September 2026
Consumer durables and electronics makers bet on premiumisation to drive festive demand Moneycontrol | 14 September 2026 India’s consumer durables and electronics market is entering the festive season with companies expecting stronger demand, supported by improving sentiment, premiumisation and a longer shopping period. Early trends indicate particular interest in larger, energy-efficient and technology-rich appliances, although higher prices could keep some consumers cautious. Companies including LG Electronics India, Haier, Blue Star, CGCEL, BSH Home Appliances and Dreame Technology India are reporting encouraging signals. Analysts expect value growth to exceed volume growth, with financing, exchange offers and discounts likely to support purchases among price-sensitive consumers. TOP
Telecom India joins US-led global initiative to shape next-generation 6G networks The Economic Times | 08 September 2026 India has joined the United States and 24 other countries in a global initiative aimed at shaping the development and deployment of next-generation 6G networks. The US Department of Commerce announced the agreement following a meeting between Commerce Secretary Howard Lutnick and India’s Minister of State for Commerce and Industry Jitin Prasada during the G20 Innovation Ministerial. The initiative seeks to ensure future networks reflect shared security interests, strengthen competitiveness and promote innovation. Prasada led India’s delegation at the September 1–2 G20 Innovation Ministers’ meeting in North Carolina. Digital Communications Commission approves TRAI recommendations on satcom spectrum The Economic Times – Legal | 09 September 2026
AI could make India’s telecom networks autonomous, but accountability must stay: TRAI chairman Moneycontrol | 14 September 2026
EV’s & Auto Electronics India EV sales jump 51% in August as robust demand drives electric car and 2W market growth The Economic Times | 02 September 2026
India’s EV ambitions hit China’s rare earth roadblock; supply chain risks extend to batteries: ACMA Fortune India | 02 September 2026 China’s export controls on rare-earth magnets and other critical minerals exposed significant vulnerabilities in India’s growing EV supply chain during 2025. An ACMA report said licensing requirements for rare-earth magnets disrupted EV motor production, with supplies easing only by September. China controls about 90% of global rare-earth processing, while India sources nearly 85% of its magnets from China. Battery supply chains are similarly exposed, with graphite processing concentrated in China and India importing nearly all its lithium-ion cells. Controls on gallium, germanium and antimony add further risks. Tata, Adani, Reliance triple their EV charging points in 3 years Mint | 15 September 2026
Defence & Solar How ‘local’ is India’s defence infrastructure, really? Mint | 01 September 2026 India is accelerating defence indigenisation through new local manufacturing partnerships and procurement policies. On 31 August, a Lockheed Martin unit partnered with Tata Advanced Systems to manufacture Javelin anti-tank missiles in India, shortly after the government issued its sixth and largest Positive Indigenization List covering more than 400 items worth over ₹3,000 crore. Over the past five years, domestic suppliers have provided more than 15,700 defence items. A proposed new Defence Acquisition Procedure could further strengthen localisation by prioritising Indian-owned designs and patents and requiring substantial domestic value addition. Rs 5,070-crore bet: Can ‘floating solar’ power India’s next renewable leap? The Times of India | 03 September 2026 India is expanding its solar strategy to include floating photovoltaic projects, aiming to address land constraints and improve renewable power reliability. The Union government’s Pradhan Mantri Surya Sarovar Yojana, approved in July 2026, will support 5,000 MW of floating solar capacity on reservoirs and other inland water bodies, combined with energy storage of at least two hours. With an outlay of ₹5,070 crore through 2030-31, the scheme builds on India’s rapid solar expansion, with installed capacity reaching 162.15 GW by June 2026. India proposes mandatory battery storage for new renewable projects from July 2027 Reuters | 04 September 2026 India plans to mandate battery storage for new government solar and onshore wind projects from July 2027, according to draft regulations. Projects commissioned after July 1, 2027 would need storage equivalent to at least 10% of capacity for two hours, with the requirement increasing to four hours from July 2029. The move aims to manage fluctuations in renewable generation, reduce curtailment and improve grid reliability. The draft also proposes grid-forming inverter capabilities for projects commissioned after July 2027 to support voltage and frequency stability. India clears ₹1.10 lakh crore defence acquisitions for Army, Navy and Air Force The Economic Times | 07 September 2026 The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, has granted in-principle approval for defence procurement proposals worth around ₹1.10 lakh crore, with nearly 98% expected to be sourced from Indian industry. The approvals cover requirements of the Army, Navy and Air Force. For the Army, key acquisitions include CBRN reconnaissance vehicles, high-mobility vehicles, self-propelled mechanical mine layers, Advanced Light Helicopters, trawl tanks and the Sarvatra Bridge System. The equipment is intended to strengthen mobility, logistics, surveillance and operational capabilities across challenging terrains. India, Sri Lanka sign three defence sector MoUs during Rajnath Singh’s visit The Hindu | 09 September 2026 Defence Minister Rajnath Singh reaffirmed India’s support for Sri Lanka during his September 9 visit to Colombo, where the two countries signed three defence-related Memoranda of Understanding. The agreements cover the upgrading of L70 guns for the Sri Lankan Air Force and cooperation between the National Cadet Corps and the National Defence Colleges of both countries. Singh’s visit was the first by an Indian Defence Minister to Sri Lanka in nearly four decades. The agreements build on the broader defence cooperation established during Prime Minister Narendra Modi’s 2025 visit. India, Vietnam agree to deepen defence ties, co-produce military equipment The Indian Express | 15 September 2026 India and Vietnam have agreed to deepen defence and security cooperation, including exploring co-production of Indian defence equipment, amid concerns over China’s growing assertiveness in the Indo-Pacific. The agreement followed External Affairs Minister S. Jaishankar’s meeting with Vietnamese Foreign Minister Le Hoai Trung and the 19th India-Vietnam Joint Commission Meeting. Defence cooperation is a key pillar of their Comprehensive Strategic Partnership and has expanded into military dialogue, capacity building and training. India has also supported Vietnam through defence equipment, including the indigenously built INS Kirpan and high-speed guard boats. TOP
MSME EV shift puts auto parts MSMEs under pressure The Times of India | 04 September 2026 India’s shift to electric and technology-intensive vehicles is highlighting capability gaps among auto component manufacturers, particularly MSMEs. Domestic OEM sourcing rose 16% to ₹6.6 lakh crore in FY26, while exports reached ₹2.1 lakh crore. However, imports are growing faster, with China accounting for around 36% of component imports. MSMEs, which make up about 80% of auto parts producers, face shortages in advanced engineering, electronics, embedded software and systems integration. Embedded software capability is present in only about 10% of suppliers, while systems integration and product development capabilities are available at roughly 14%. India pushes for more MSME suppliers in global aerospace market: Civil Aviation Minister Naidu The Economic Times | 10 September 2026 India’s aviation sector presents major opportunities for MSMEs as the country seeks to expand its role in global aerospace supply chains. Civil Aviation Minister K Rammohan Naidu said India must move beyond assembling components to designing, certifying and manufacturing them domestically. Indian airlines have ordered 1,640 aircraft, potentially creating demand for about 80 crore parts and components. The aerospace and defence market is projected to grow from over $30 billion in 2025 to $61 billion by 2035. Indian MSMEs and startups already supply over $4 billion of components annually to global OEMs. India uses BRICS chairship to drive focus on MSMEs and their development The Hindu | 12 September 2026 The New Delhi Declaration adopted at the 18th BRICS Summit has placed significant emphasis on supporting MSMEs and helping them move up global value chains. India, which holds the BRICS chair in 2026, hosted the summit, with China set to take over in 2027. The declaration also carries forward key economic concerns from the previous Rio Summit, including the growing use of unilateral tariffs and non-tariff measures, unilateral coercive measures, greater use of local currencies in trade, and reforms to the WTO, IMF and World Bank. TOP
More ELCINA Publications & Reports TOP
UPCOMING EVENTS & GENERAL INFORMATION DOMESTIC EVENTS
OVERSEAS SHOWS
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GST rates have been reduced on several electronics and green technology products to improve affordability and support domestic manufacturing. Rates on air conditioners, TVs, monitors, projectors and electric accumulators have been cut from 28% to 18%, while two-way radios, renewable energy devices, solar panels and composting machines now attract GST at 5%.
Syrma SGS Technology and Europe-based Elemaster Group, through their joint venture Syrma SGS Elemaster, have inaugurated a new high-reliability electronics manufacturing facility in Bengaluru. Located in Bommasandra Industrial Area, the 20,000 sq. ft. facility is equipped with advanced Surface Mount Technology, Through-Hole Technology and box-build assembly lines. The facility is designed to meet growing demand for high-reliability electronics in sectors including railways and transportation, industrial electronics, energy and medical electronics, while supporting domestic and global OEM customers.
Huawei has announced what it describes as the world’s first 3D data centre, unveiled on September 15 at an industry conference in Wuhu, Anhui. The company also released a monograph on 3D data centres and launched a schematic design image library. While “3D” is commonly used in the data-centre industry for modelling, simulation and operational visualisation, Huawei’s announcement appears to introduce the term as a company-specific facility concept rather than an established industry category. The initiative comes as China seeks to manage the growing energy demand of data centres.
The global AI semiconductor market is projected to grow from USD 65.8 billion in 2025 to USD 255.9 billion by 2035, reflecting a 14.55% CAGR during 2026–35. Growth is being driven by rapid expansion of hyperscale AI data centres and rising demand for specialised chips. Increasing workloads from large language models and generative AI are boosting demand for GPUs, NPUs and custom AI accelerators. At the same time, advances in chip architecture, memory technologies and packaging are improving the performance and efficiency of AI semiconductors.
HORIBA India is open to manufacturing mass flow controllers and other specialised semiconductor equipment in India as the domestic chip fabrication and packaging ecosystem expands, Dan Horiba said. He noted that local production would depend on market demand and volumes. While India has strong R&D talent, Horiba stressed the need for an end-to-end semiconductor value chain that enables Indian companies and researchers to develop and retain more intellectual property. He cited Japan’s experience, where component and material suppliers helped build a strong semiconductor ecosystem. Government support and demand-led policies will be important.
Nvidia CEO Jensen Huang has called on India to accelerate its adoption and development of AI, saying the country can build a domestic AI economy by leveraging its established IT industry. Speaking on the sidelines of the G20 Innovation Ministerial, Huang said the pace of AI development requires countries to move quickly. He described India’s technology sector as a strong foundation for the emerging AI platform and expressed interest in Indian companies and startups developing AI businesses, products and technologies. He said India should move beyond using AI to contributing to its development.
Samsung Electronics has started layoffs in India, with around 80–100 employees in its TV and home appliance divisions reportedly asked to leave as higher memory chip prices put pressure on margins. The restructuring could eventually affect up to 25% of the company’s consumer electronics sales and marketing workforce, with further cuts possible after the festive season. Samsung’s smartphone business in India has not been affected so far. The company is relying on strong festive-season demand to support smartphone sales despite the broader cost pressures.
The Digital Communications Commission (DCC) has approved most of TRAI’s recommendations on spectrum allocation for satellite communication services, paving the way for final government approval. Starlink, Eutelsat OneWeb and Jio Satellite Communications have received permission to provide satcom services in India but still require spectrum allocation and further security clearance. The Department of Telecommunications will approach the Cabinet on spectrum pricing and allocation. TRAI had proposed a 4% annual revenue-based spectrum charge, while the DoT is reportedly considering 5%. The recommendation also includes a minimum annual charge of ₹3,500 per MHz.
TRAI Chairman Anil Kumar Lahoti said AI can help India’s telecom sector move from conventional automation towards greater network autonomy, while maintaining accountability and human oversight. He said AI can influence network management, service design, risk identification and decision-making. Lahoti highlighted India’s large digital population, extensive telecom market and growing AI ecosystem as key advantages. He said operators are already using AI to analyse network data and improve services, but greater automation must be supported by safeguards and responsible AI practices, particularly for high-impact systems.
India’s electric vehicle sales rose 51% year-on-year in August, although registrations declined 12% from July due largely to festival-related closures at regional transport offices. Electric car registrations reached 29,687 units, while electric two-wheeler sales among the top five listed companies grew 69% annually to 160,000 units. Bajaj Auto and TVS Motor drove the two-wheeler segment’s growth, while Ola Electric recorded a 29% year-on-year decline. Despite the monthly slowdown, dealers said underlying consumer demand for electric vehicles remains strong.
India’s EV charging network operated by Adani, Tata and Reliance has expanded significantly, with their combined charging points rising 21% year-on-year in FY26 to over 18,900. The network has grown 67% since FY24 and 280% since FY23. These charging points serve electric passenger vehicles, buses and trucks across public, semi-public and private locations. State-run oil companies HPCL, BPCL and IOCL remain major players, accounting for more than a third of the market. PSUs increased their share of public four-wheeler chargers to 37%.
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A newsletter published by ELCINA, New Delhi. The information contained in this newsletter is for private circulation only. Despite our best efforts, some errors could have crept in. You are advised to verify authenticity of the information before further use. Electronic Industries Association of India (ELCINA) ELCINA House, 422 Okhla Industrial Estate, Phase-III, New Delhi 110020 (India). E-Mails: info@elcina.com Tel: 011-41615985, 41011291 Website: www.elcina.com |