|
| VOL XXVII | ISSUE 12 | 30 June 2026 | Previous Edition |
| HOME | SUBSCRIBE |
| TOP STORIES | POLICY SCAN | INDUSTRY SCAN | PUBLICATIONS & REPORTS | ELCINA EVENTS | UPCOMING EVENTS |
.jpg)
India's annual defence production surges to ₹1.78 trillion in 2025-26 Business Standard | 17 June 2026
China’s Electric Vehicle Exports Reach Record High in May Bloomberg | 24 June 2026
No chips, No glory for India's AI companies racing to lock in GPUs The Economic Times | 30 June 2026
|
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 |
India’s annual defence production reached a record ₹1.78 trillion in 2025-26, marking 15.6% growth from ₹1.54 trillion in 2024-25 and a 110% rise since 2020-21’s ₹84,643 crore. Defence Minister Rajnath Singh credited the surge to the Department of Defence Production, policy support, private sector participation, and rising export capabilities. He said the achievement reflects India’s rapidly expanding defence industrial base and predicted continued acceleration in the sector. The ministry noted the growth as a significant milestone for self-reliance in defence manufacturing.
China’s electric vehicle exports hit a record $9.2 billion in May, surging 50% year-on-year, as global supply disruptions from the Iran conflict drive demand for clean-energy alternatives. The Strait of Hormuz closure pushed countries to accelerate electrification to cut fuel-import risks. While EV shipments soared, broader electricity technology exports—solar panels and batteries—stayed near record levels but dropped 6% from March, with solar and battery shipments plunging 51% and 16%, mainly due to expired export tax rebates, highlighting a shifting energy trade landscape.
Indian AI startups and firms face rising GPU and chip costs amid acute shortages. Data centre and server costs have surged 50% in four months, with GPU lead times stretching to six-eight months as Nvidia’s Blackwell series sells out. Companies moving from AI pilots to production, coupled with global supply disruptions and conflicts, are worsening bottlenecks. Experts report GPU and memory prices rising 20-50% in 2026, straining AI infrastructure operations nationwide.
|
Govt approves ₹1.25 trillion outlay for India Semiconductor Mission 2.0 Business Standard | 30 June 2026
Indian electronics manufacturers forge more and more partnerships with companies from South Korea, Taiwan, Japan The Economic Times | 30 June 2026 Indian electronics manufacturers are increasingly partnering with South Korean, Taiwanese, and Japanese firms or pursuing solo projects to reduce reliance on China amid prolonged regulatory approvals and geopolitical uncertainties. Companies like Dixon, Amber Enterprises, PG Electroplast, Epack Durable, and Syrma SGS have launched at least eight collaborations in recent months for electronics components and products. These ventures align with the government’s push for self-reliance, though executives acknowledge China’s cost and technology edge. Some firms, like PG Electroplast, are independently building plants after stalled Chinese partnerships. TOPStandalone Hard Disk Drives Added to BIS Compulsory Registration The Compulsory Registration Order has been amended to include standalone hard disk drives (HDDs) under the BIS registration framework, requiring compliance with IS 13252 (Part 1): 2010. Existing provisions for USB type external HDDs remain unchanged, while the revised requirement for other standalone HDDs will take effect from November 5, 2026. MeitY, IPHW Division | CG-DL-E-05052026-272246 | 05 June 2026 Licensing Exempted for Short-Range Automotive Radar Systems The government has exempted Short-Range Automotive Radar Systems operating in the 77–81 GHz frequency band from licensing requirements, subject to prescribed technical specifications, equipment type approval, and applicable standards. The move is expected to facilitate wider deployment of advanced driver assistance and connected vehicle technologies while ensuring protection against harmful interference. Ministry of Communications, Department of Telecommunications | CG-DL-E-12062026-273377 | 11 June 2026 TEC Revises Standards for Telecom Equipment The Telecommunication Engineering Centre (TEC) has notified revised standards for a range of telecom equipment, including solar power systems, MPLS routers, UPS systems, lightning protection, media converters, cellular network drive test tools, and video streaming platforms. The revised standards take effect immediately upon publication in the Official Gazette. Ministry of Communications, Department of Telecommunications, Telecommunication Engineering Centre | CG-DL-E-12062026-273413 | 12 June 2026 Accredited Lab Reports Accepted for Export Testing CBIC has clarified that, for export consignments, Customs officers may accept test reports from NABL-accredited, EPC-recognised, and other recognised laboratories without mandatory referral to the Customs Revenue Control Laboratory (CRCL), unless there are risk-based or intelligence-driven concerns. The move aims to reduce delays, eliminate duplicate testing, and facilitate faster exports, while existing testing procedures for import consignments remain unchanged. Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs | Circular No. 28/2026-Customs | 15 June 2026 TEC Revises Standards for IoT and Smart Devices The Telecommunication Engineering Centre (TEC) has notified revised standards for IoT gateways, smart electricity meters, tracking devices, feedback devices, and environmental monitoring end-point devices. The existing and revised standards will remain valid concurrently for 90 days, after which compliance with the revised standards will become mandatory. Ministry of Communications, Department of Telecommunications, Telecommunication Engineering Centre | CG-DL-E-23062026-273750 | 19 June 2026 Implementation Deferred for Select Steel Quality Standards The Steel and Steel Products (Quality Control) Order, 2024 has been amended to defer the enforcement of specified Indian Standards for certain steel products. Compliance for two standards has been postponed by three years, while three others have been deferred until March 31, 2027, providing additional time for industry to meet the quality control requirements. Ministry of Steel | CG-DL-E-22062026-273720 | 20 June 2026 Enforcement Deferred for Select Cross Recessed Screw Standards The Cross Recessed Screws (Quality Control) Order has been amended to defer enforcement of specified Indian Standards for products listed at serial numbers 12, 13, and 14. The compliance requirement for these standards has been postponed by three years from the date of publication of the amendment. Ministry of Steel | CG-DL-E-22062026-273719 | 20 June 2026 Anti-Dumping Investigation Initiated on CRGO and Amorphous Metal Imports DGTR has initiated an anti-dumping investigation into imports of Cold Rolled Grain Oriented (CRGO) electrical steel and Amorphous Metal used in transformer cores from China, Japan, South Korea, and Russia. The investigation will examine whether dumped imports have caused injury to the domestic industry and may lead to the imposition of anti-dumping duties, including possible retrospective application, if the allegations are substantiated. Ministry of Commerce & Industry, Directorate General of Trade Remedies, DGTR | Notification No. F. No.6/17/2026-DGTR | 22 June 2026 TOPGeneral India seeks rare earth samples from Rosneft-owned Siberian deposit, source says Reuters | 16 June 2026 Indian state-run miner IREL is in talks with Rosneft to source rare earth samples from Russia’s Tomtor deposit, as India seeks to secure critical minerals and reduce reliance on China. The samples will be processed in Russia before shipment to India for study. New Delhi aims to assess the deposit’s composition before deeper engagement. IREL is expanding global outreach, considering mining opportunities in Argentina, Australia, Malawi, and collaborating with Japan and South Korea, targeting domestic rare earth magnet production by 2029–30 amid rising clean energy demand. Jio Plans 1,600+ LEO Satellites The Economic Times | 18 June 2026
Meta bets on India as AI infra hub: ‘It takes a global network to enable a global network’ The Indian Express | 19 June 2026
PLI, duty incentives soon for Lithium, Nickel processing units in India The Economic Times | 20 June 2026 India is finalising a ₹2,000 crore production-linked incentive scheme with duty waivers for lithium and nickel processing units to boost domestic refining capacity and cut import dependence. The plan complements the ₹16,300 crore National Critical Minerals Mission, covering the value chain from mining to recycling. With no current domestic production, India relies on imports while China dominates processing. Upcoming mines in Bihar, Karnataka and Chhattisgarh, alongside rising EV battery demand projected at 210 GWh by 2030, underscore the urgency for local refining infrastructure. Adani aims to be major player in India's nuclear power sector, targeting 10 GW by 2035 Reuters | 24 June 2026
Jewar set to become India's leading electronics, semiconductor hub: Ashwini Vaishnaw Moneycontrol | 27 June 2026 Union Minister Ashwini Vaishnaw and CM Yogi Adityanath laid the foundation for two electronics projects worth ₹6,750 crore in Jewar, Uttar Pradesh, expected to generate 3,000 jobs. ASCENT-K Circuit will build a ₹3,250-crore advanced PCB facility, while Amber Enterprises will invest ₹3,500 crore in HVAC and PCB assembly manufacturing. Vaishnaw said the projects will reduce India’s ₹40,000-crore PCB import dependence, save foreign exchange, and position Jewar as the “Silicon Valley of North India,” supported by growing regional infrastructure and global investment potential. TOPSemiconductors Tatas Get Malaysian Cleanroom Specialist IAQ for Dholera Fab The Economic Times | 18 June 2026
India plans semiconductor buildout with ₹7,100 crore incentives in FY27 Mint | 22 June 2026 Under FY27, the Department of Expenditure has tasked MeitY to boost India’s semiconductor ecosystem by backing 1 fab unit, 9 manufacturing/ATMP-Osat facilities, and 30 design firms. The fab unit will get ₹2,000 crore, drawing ₹4,000 crore in investments and 1,500 jobs. The 9 facilities will receive ₹5,000 crore, attracting ₹11,000 crore and 3,000 jobs. ₹100 crore under the DLI scheme will aid design companies to create 10 IP cores and hire 200 professionals. Total FY27 allocation: ₹7,100 crore. TOPInformation Technology India's top 10 IT firms spent $4.5 billion in acquisitions in H12026 amid AI shift Moneycontrol | 25 June 2026
Indian IT industry faces long growth slowdown amid AI shift and global uncertainty: JPMorgan Moneycontrol | 28 June 2026
IT deals face rejig as clients force new terms for AI gains The Economic Times | 30 June 2026 Corporates are increasingly renegotiating IT services contracts within 24 months, driven by AI-led productivity gains that outpace traditional pricing models. Large deals over $50 million, especially pandemic-era annuity contracts, face the most pressure as clients seek outcome-based pricing, automation targets and gain-sharing instead of FTE and T&M structures. Analysts note AI efficiencies emerge within quarters, prompting mid-term revisions to mispriced agreements. Despite strong deal pipelines for TCS, Infosys and Wipro, revenue realisation is muted due to AI-driven pricing deflation across banking, insurance, manufacturing and consumer sectors. TOPConsumer Electronics Will iPhones and MacBooks get costlier? Why Tim Cook says Apple price hikes are unavoidable Mint | 18 June 2026 Apple CEO Tim Cook announced that product prices will rise due to soaring memory and storage chip costs, driven by surging AI demand. Cook highlighted severe DRAM shortages and said Apple had tried to shield customers but the situation is “unsustainable.” Macs and iPads may see the earliest hikes, with future iPhones potentially $270 costlier. Memory and storage prices have quadrupled since 2025, and Cook called it a “hundred-year flood.” He suggested Apple could invest to ease supply but ruled out building its own chip factories. Xiaomi plans entry into large home appliances in India as smartphone shipments decline The Economic Times | 19 June 2026
As new phones, cars get costlier, Indians turn to second-hand market in droves The Economic Times | 19 June 2026 Rising smartphone and passenger vehicle prices are pushing consumers towards refurbished and second-hand products. Counterpoint Research reports that pre-owned smartphones made up 26% of sales in January-May 2026, up from 23% last year. Prices rose 30-70% due to soaring memory chip costs, eliminating most sub-₹10,000 4G phones. Limited financing in small towns is also driving buyers to used devices. The second-hand smartphone market is expected to grow 12% this year, while new sales may fall 11%, with total handset sales projected at 190 million units. TOPTelecom India removes local-sourcing rules for satellite internet, but ambiguity remains Mint | 24 June 2026 India has notified the Telecommunications (Authorisation) Rules, 2026, shifting from licensing to an authorisation regime. The final rules drop the proposed 20% local sourcing and prohibited investor clauses but add strict security and monitoring requirements for satellite internet operators. Operators cannot route Indian traffic through foreign gateways, must prevent location spoofing, and link terminals to registered premises. Corporate insolvency must be reported within 48 hours. The framework introduces five service authorisations, anti-fraud measures, SIM hoarding checks, and mandatory systems to block spoofed or tampered calls. India rewrites telecom rulebook, replacing licence contracts with statutory authorisations The Economic Times | 25 June 2026 The government has introduced the Telecommunication (Authorisation for Provision of Major Telecom Services) Rules, 2026, replacing the old bilateral licence model with a unilateral statutory authorisation system. Future government directions automatically become part of operators’ obligations, with violations treated as statutory breaches under the Telecom Act, not contractual disputes. Enforcement will occur via an adjudicating officer, an appeals committee, and the TDSAT. Existing licences continue until expiry, after which authorisation applies. Notably, non-telecom revenues are excluded from adjusted gross revenue calculations, addressing a long-standing industry concern. TOPEV's & Auto Electronics Tata Agratas inks $530-million EV battery supply pact with JLR Mint | 22 June 2026
Delhi EV Policy 2026 approved: No hybrid incentives, petrol bikes phased out from April 2028 Moneycontrol | 29 June 2026 The Delhi EV Policy 2026, effective from 1 July 2026 to 31 March 2030, focuses solely on battery electric vehicles, dropping proposed incentives for strong hybrids. It offers purchase subsidies, scrapping incentives, 100% road tax and registration fee exemptions for EVs up to ₹30 lakh, and a three-year lock-in to prevent subsidy misuse. Key deadlines mandate only electric three-wheelers from 2027 and two-wheelers from 2028. The government will invest ₹15,000 crore in charging infrastructure and scrapping facilities, aiming for a pollution-free Delhi by 2030. In top gear: Electric passenger vehicle sales may cross 3 lakhs in 2026 The Times of India | 29 June 2026 India’s electric passenger vehicle (EPV) market is set to cross 3 lakh annual sales in 2026, up from under 2 lakh last year, with 1.5 lakh registrations already this year. Growth is driven by new model launches, improved charging infrastructure, and festive demand. Structural drivers include a doubling of available models, longer battery warranties, and Battery-as-a-Service options. Rising fuel prices from the West Asia conflict enhance EV cost competitiveness, while technological advances reducing range anxiety are boosting consumer adoption, according to Crisil and Frost & Sullivan. TOPDefence & Solar NTPC installs 5 GWh battery storage at coal plants in Rs 5,000 crore push to cut renewable curtailment The Economic Times | 18 June 2026
Reliance New Energy prepares battery-swapping rollout for EV two-wheelers in logistics, delivery segment The Economic Times | 18 June 2026
MSME Rajasthan CM announces steps to promote MSMEs, semiconductor manufacturing The Economic Times - Manufacturing | 28 June 2026 Rajasthan CM Bhajanlal Sharma announced measures to boost MSMEs and electronics, including artisan markets in Pushkar, Nathdwara, Jaisalmer, and Alwar, support for 25 startups, and incentives for semiconductor manufacturing. RIPS-2024 thresholds were eased, skill allowances for women and disabled workers raised, and ODOP units will get financial aid. Land allotment and approval timelines for industries were cut, and new industrial hubs like solar, ceramic, and defence parks are planned. He launched the Industrial Development Policy, RAMP portal, and distributed ₹13 crore in subsidies and land letters. India’s MSME Credit Gap Widens As Only 14% Businesses Can Access Formal Loans: Deloitte Report Businessworld | 29 June 2026 Deloitte’s State of Financial Services in India report reveals that only 14% of MSMEs access formal credit, leaving a Rs 25 lakh crore credit gap that could exceed Rs 50 lakh crore. Despite 89% financial account ownership and UPI’s massive growth, limited borrowing persists, with 15% adults accessing credit and insurance penetration at 3.7% of GDP. Collateral-based lending restricts MSMEs, prompting calls for cash-flow-based lending, digital lending infrastructure, and better tracking of credit outcomes to deepen financial inclusion and support economic growth. TOP
ELCINA EVENTS, ACTIVITIES & SERVICES Defence & Aerospace: 15th Strategic Electronics Summit, 2026 23–24 July 2026 | BIEC, Bengaluru 
The 15th Strategic Electronics Summit (SES) 2026 on Defence and Aerospace will bring together innovators, manufacturers, system integrators, and defence procurement agencies to highlight India's growing capabilities in electronic systems across aerospace, land, naval, and strategic platforms. The summit will serve as a key platform for collaboration, technology exchange, and industry–government engagement, aimed at accelerating India's push toward greater self-reliance in defence electronics. Bharat Security Expo 23–24 July 2026 | BIEC, Bengaluru | Co-located with Strategic Electronics Summit 2026 
Strategic electronics has long been a key focus area for ELCINA and its members, given its critical role in defence, aerospace, and security equipment. Electronics technology is at the cutting edge of almost the entire range of defence & security equipment required today. We are delighted to announce the launch of Bharat Security Expo – an exclusive industry-platform dedicated to internal security, fostering innovation, collaboration, and business growth. The event is co‑located with the Strategic Electronics Summit (SES 2026) and scheduled on 23rd & 24th July 2026 at BIEC, Bengaluru. Bharat Security Expo offers the security and surveillance industry an unparalleled opportunity to connect directly with DPSUs, Government Procurement Agencies, manufacturers, infrastructure leaders, banks, the Home Ministry, and State Police departments. TOPUPCOMING EVENTS & GENERAL INFORMATION DOMESTIC EVENTS
OVERSEAS SHOWS
|
|||||||||||||||||||||||||||||||||||||||||||||||
The finance ministry has cleared a ₹1.25 trillion outlay for India Semiconductor Mission (ISM) 2.0, up from ₹76,000 crore under ISM 1.0, pending Cabinet approval. The scheme will offer up to 50% fiscal support for fabs, compound semiconductor units, assembly, testing, and chip design. ISM 2.0 focuses on manufacturing, design, skill development, and self-reliance, with added incentives for raw material makers and domestic IP retention. The EFC approved it last week, and ₹1,000 crore was earmarked in the 2026-27 Union Budget.
Reliance Jio plans to launch a 1,600-1,650 satellite LEO constellation at 650 km altitude within 2-3 years to deliver broadband and direct-to-device services. The company has submitted its proposal to IN-SPACe, with government support for ITU orbital filings. The project, estimated at $10-15 billion, positions Jio as the first Indian player in the LEO segment, dominated by Starlink, Amazon Kuiper, and OneWeb. The satcom unit will operate under Jio Platforms, which is also preparing for an IPO.
Meta is set to open its first AI-enabled 168 MW data centre in Jamnagar, Gujarat, in partnership with Reliance Industries. Vice President Santosh Janardhan said the facility will be part of a global network of interconnected supercomputers, not just for local use. Meta sees India as a key investment destination and vital to future digital infrastructure. While Indian users may see indirect benefits initially, the centre strengthens Meta’s global computing capabilities and reflects India’s rising role in worldwide technology infrastructure.
Adani Group plans to build 10 GW of nuclear power capacity by 2035 through its new unit, Adani Atomic Energy, potentially becoming India’s largest private nuclear operator. Gautam Adani announced the move at the group’s AGM, calling it a step toward India’s long-term energy security. India targets 100 GW of nuclear capacity by 2047, up from 8 GW now, with NPCIL aiming for 50 GW and NTPC for 30 GW.
Tata Electronics has partnered with Malaysia’s IAQ Group to design and install the cleanroom for its $11 billion, 300 mm semiconductor fab in Dholera. Cleanrooms are critical to prevent contaminants from affecting chip precision, and IAQ—renowned for projects with Texas Instruments and Infineon—will deliver the turnkey solution. Founded in 1994, IAQ specialises in hi-tech facility engineering, including HVAC and contamination control, mainly in Southeast Asia. Analysts note this tie-up is timely, as global cleanroom EPC capacity is tight amid AI-driven semiconductor fab expansions worldwide.
In H1 2026, India’s top 10 IT firms spent $4.5 billion on acquisitions to boost AI, cybersecurity, and domain-specific capabilities amid slowing organic growth. Key deals included Coforge’s $2.35 billion Encora buy and new acquisitions by TCS, HCLTech, Infosys, and Wipro. Globally, IT services M&A reached $25 billion, with Accenture’s $4.18 billion cybersecurity spree triggering a 20% stock plunge and market caution. Analysts expect slower, selective M&A in H2, as firms balance AI-driven revenue pressures with a historically conservative investment approach.
JPMorgan warns India’s IT sector faces prolonged weak growth amid AI disruption and geopolitical uncertainty. Industry revenue has stagnated at 2-3% over three years, with AI-led deflation and delayed client spending likely to extend weakness into FY30. Large IT firms are forecast to grow only 3-4%, far below historical 7-8% levels. Deal ramp-ups and signings remain slow, and valuations have been cut 10-25% as structural growth stays under 5%. A recovery requires clear revenue acceleration, which lacks visibility.
Xiaomi is planning to enter India’s large home appliances market, aiming for long-term growth amid declining smartphone sales. The company has appointed Alex Tang as South Asia head, with India elevated as the regional headquarters. Products like air-conditioners, refrigerators, and washing machines will be locally manufactured with the help of domestic partners to overcome past supply chain and certification hurdles. Localisation and technology transfer will be key to Xiaomi’s next growth phase in India and neighbouring markets.
Agratas, Tata Group’s EV battery venture, will initially supply NMC cells under its first $42 million (₹400 crore) deal in FY27, later adding LFP chemistry. Commercial operations will scale by this fiscal’s last quarter, supporting Tata Motors and JLR’s EV rollout. Backed by a $730 million loan and a 20 GWh Sanand plant, Agratas reduces reliance on China amid rare-earth curbs. Chaired by N. Chandrasekaran, the venture aligns with Tata’s new-age strategy, leveraging group synergies for cost savings and long-term growth.
NTPC has started installing 5 GWh of battery storage at its coal plants with a ₹5,000 crore investment to reduce renewable energy curtailment. The batteries will store excess solar and wind power, supported by CERC’s cost-plus tariff that ensures returns regardless of plant use. Coal units can also stand down below 55% load under new rules, improving grid flexibility. NTPC Green Energy faced 314 million units of curtailment and 135 million units of transmission losses, underscoring rising renewable integration challenges.
Reliance New Energy, the green energy arm of RIL, is set to launch battery-swapping services for electric two-wheelers in delivery and logistics. It has secured ARAI certification for four battery types and three vehicle platforms, enabling internal fleet testing. Trials will begin in the company’s operations, followed by city-based pilots, with a commercial rollout targeted by FY27-end. The removable lithium-ion batteries, first showcased at REI Expo 2023, will initially cater to commercial fleets, offering an economical solution for e-commerce and last-mile logistics.
%20scheme.jpg)
|
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 |