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| VOL XXVII | ISSUE 16 | 31 August 2026 | Previous Edition |
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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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Rs 62,500 crore to Rs 39 lakh crore: The roadmap of India’s new mobile manufacturing scheme Financial Express | 23 August 2026 The Centre has launched the ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS) to deepen India’s role in the global mobile industry. The five-year programme aims to generate around ₹39 lakh crore in mobile-phone production, ₹15 lakh crore in exports and 60,000 direct jobs. Replacing the earlier large-scale electronics PLI scheme, MPMS shifts the focus beyond handset assembly by incentivising domestic components, Indian intellectual property, design, research and globally competitive homegrown brands. The government expects the scheme to significantly increase the value retained within India’s mobile manufacturing ecosystem. Nvidia’s trillion-dollar chip market has friends and foes closing in Mint | 25 August 2026 Nvidia remains the dominant force in AI chips, but competition is intensifying as cloud providers, established semiconductor companies and startups develop alternatives. Amazon CEO Andy Jassy says the company’s chip business could generate over $25 billion in annual revenue as demand grows rapidly. Google, Amazon and other hyperscalers are increasingly designing and selling their own data-centre chips, while rivals such as AMD and Broadcom expand their AI businesses. Despite Nvidia’s strong ecosystem and continued rapid growth, the prospect of a $1 trillion AI chip market is attracting an expanding range of competitors. Centre notifies Semicon 2.0 scheme with ₹1.27 lakh crore outlay The Economic Times - Telecom | 31 August 2026 The Centre has notified the ₹1.27 lakh crore Semicon 2.0 scheme to strengthen India’s semiconductor manufacturing ecosystem and supply chains. The programme aims to attract around ₹4 lakh crore in investments and enable semiconductor production worth ₹2 lakh crore. It covers six key segments, including chip design, fabrication, assembly, packaging, testing, equipment, materials, R&D and talent development. Silicon wafer fabs will receive fiscal support of up to 40% of eligible capital expenditure, with applications now open. TOP
Domestic Steel Procurement Norms Shift to ‘Melt & Pour’ Criteria The government has amended the Domestically Manufactured Iron & Steel Products Policy, 2025, replacing the existing 50% Domestic Value Addition requirement with a ‘Melt & Pour’ criterion for specified iron and steel products. The revised requirement applies to products under HS Codes 7301, 7302, 7303 and 7308 to 7326, requiring the steel to meet the prescribed domestic melt-and-pour criteria and the final product to be manufactured entirely within India. Ministry of Commerce and Industry, Department of Commerce, DGFT | CG-DL-E-11082026-275385 | 20 August 2026 Customs Extends Transshipment Facilitation Measures Amid West Asia Crisis Customs has extended facilitative measures for the international transshipment of cargo through Indian ports and airports amid continuing disruptions to maritime routes and uncertainty in the Gulf region. The measures permit the temporary unloading, storage and onward transshipment of diverted bulk cargo under Customs supervision, while maintaining existing procedures for containerised cargo, and will remain in force until October 31, 2026. Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs | 36/2026-Customs | 20 August 2026 Mobile Phone Manufacturing Scheme (MPMS) Launched with ₹62,500 Crore Outlay The government has launched the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to provide production-linked incentives for mobile phone manufacturing, deepen domestic value addition and support the growth of Indian mobile phone brands. The five-year scheme, running from FY 2026-27 to FY 2030-31, offers incentives for both large-scale manufacturers and Indian brands, including additional benefits for domestic sourcing of key components and Indian design and R&D. MeitY, IPHW Division | CG-DL-E-21082026-275648 | 21 August 2026 One Star Export House Criteria Relaxed The government has relaxed the eligibility criteria for One Star Export House status by allowing exporters, other than those in the Gems & Jewellery sector, to qualify based on their export performance in any two of the three preceding financial years. Previously, export performance was required in all three preceding years, subject to the provisions of the Foreign Trade Policy, 2023. Ministry of Commerce and Industry, Department of Commerce, DGFT | CG-DL-E-21082026-275649 | 21 August 2026 DGFT Introduces Automated Export Obligation Extension Facility The DGFT has introduced an automated system for granting Export Obligation (EO) extensions for Advance Authorisation and EPCG cases approved by the PRC/EPCG Committee. Exporters will no longer need to submit a separate EO extension application to the concerned Regional Authority after receiving committee approval, with the extension processed automatically upon payment of the prescribed fee through the DGFT portal. Ministry of Commerce and Industry, Department of Commerce, DGFT | 21/2026-27 | 21 August 2026 DGFT Updates Export Policy to Align ITC (HS) Codes with Finance Act 2026 The DGFT has amended the Schedule-II Export Policy under ITC (HS) 2022 to align India's export classification system with changes introduced through the Finance Act, 2026. The notification revises, adds, deletes, splits and merges tariff codes and related policy conditions across numerous product categories, with the changes taking effect immediately. Ministry of Commerce and Industry, Department of Commerce, DGFT | CG-DL-E-25082026-275734 | 21 August 2026 BIS Notifies Amendment to Smart Electricity Meter Standard The Bureau of Indian Standards (BIS) has established Amendment No. 4 to IS 16444 (Part 1): 2015, covering specifications for a.c. static direct connected watthour smart meters of Class 1 and 2. The existing version of the standard will remain valid until February 16, 2027, allowing a transition period for implementation of the amended requirements. Bureau of Indian Standards, Department of Consumer Affairs | CG-DL-E-25082026-275763 | 25 August 2026 India Launches Semicon 2.0 Scheme to Strengthen Chip Ecosystem The government has launched the Semicon 2.0 scheme to provide sustained policy and fiscal support across India's semiconductor value chain, covering chip design, fabrication, packaging, equipment and materials. The scheme aims to build a self-reliant and globally competitive semiconductor ecosystem, with dedicated incentives for strategic and commercial chip design, deployment-linked sales, and the development of domestic semiconductor manufacturing equipment and materials. MeitY, Iphw Division | CG-DL-E-31082026-275860 | 31 August 2026 TOP
General Chinese visa impact hits Indian physical AI startups The Economic Times | 21 August 2026
AMI orders 9,000 NVIDIA Rubin GPUs for Hyderabad AI factory, plans $8 billion compute push Moneycontrol | 25 August 2026 AM Intelligence (AMI), an AI infrastructure platform established by the promoters of Greenko, has placed a binding order for around 9,000 NVIDIA Rubin GPUs for its first AI factory in Hyderabad. Expected to be delivered in early 2027, the deployment will use 30 MW of capacity and rank among Asia’s earliest frontier-scale AI computing clusters based on NVIDIA’s Vera Rubin architecture. The project represents the first phase of AMI’s planned 1 GW global Compute-as-a-Service platform, spanning India, the US, Finland and Malaysia. OpenAI Claims Its New Chips Can Outperform Nvidia Processors in Tests Yahoo Finance | 25 August 2026
Goyal promises BIS certification relief for high-tech sector firms Business Standard | 25 August 2026 Commerce and Industry Minister Piyush Goyal has said the government is developing a framework to exempt high-tech companies from mandatory BIS certification for equipment and components required to establish manufacturing facilities in India. The move follows concerns raised by Japanese companies, particularly those operating in the semiconductor and AI sectors. Depending on specific requirements, exemptions could be granted at the company, industry, product or project level. The initiative aims to ensure the timely availability of critical equipment and support high-tech manufacturing investments under the Make in India programme. Beyond assembly: Can ECMS build India's missing electronics supplier base? Business Standard | 26 August 2026 India’s manufacturing strategy is shifting from assembling finished electronics to building a deeper domestic ecosystem of components, materials and suppliers through the Electronics Component Manufacturing Scheme (ECMS). MeitY recently approved 31 new projects worth ₹6,844 crore across 10 states, covering 20 product categories and taking total ECMS approvals to 106. The projects are expected to generate ₹82,243 crore in production and nearly 9,600 direct jobs. Industry experts believe the scheme’s differentiated incentive structure has successfully attracted investment, though the larger challenge remains building globally competitive supply chains capable of reducing imports and competing with China.
Semiconductors India’s chip startups struggle to fund leap from design to commercial production Mint | 16 August 2026
India's chip story enters next phase: 5-6 semiconductor projects may go commercial by end of 2026 The Times of India | 18 August 2026 India is expected to have five to six semiconductor projects in commercial production by the end of 2026, according to MeitY Secretary S. Krishnan. Three projects under the first phase of the India Semiconductor Mission have already begun commercial operations, with more expected to follow. The next phase, ISM 2.0, will expand support across chip design, manufacturing, advanced packaging, equipment, materials, R&D and talent development while promoting emerging areas such as silicon photonics and power semiconductors. India's semiconductor investment push gains pace as Tata, L&T chip in Mint | 27 August 2026 India’s major industrial groups are increasing their presence in the semiconductor sector, with Tata Electronics, CG Power and HCL Group announcing projects worth ₹1.29 trillion under the India Semiconductor Mission since January 2025. Their actual investments in semiconductor manufacturing and assembly facilities have reached ₹3,345 crore, rising to ₹4,157 crore when L&T’s chip-design investment is included. Tata has invested ₹2,401 crore in its semiconductor subsidiaries, while CG Power has invested ₹820 crore in its Sanand OSAT venture. Piyush Goyal pitches India as semiconductor hub, invites Kansai firms from Japan to ride $150 bn wave The Hindu Business Line | 27 August 2026 Union Commerce and Industry Minister Piyush Goyal has invited Japanese companies, particularly from the Kansai region, to invest in India’s growing semiconductor ecosystem. He said the first Semiconductor Mission, supported by $10 billion in central funding, helped attract $20 billion in investments alongside state incentives. The newly launched Semiconductor India Mission 2.0 has a $15 billion outlay and could mobilise $50 billion in fresh investment. India’s annual semiconductor demand is projected to reach $150 billion within five years.
Information Technology Indian IT firms are buying growth, one client at a time Mint | 25 August 2026 Indian IT companies are increasingly combining acquisitions with large outsourcing contracts as they seek growth amid a slowing technology services market. TCS recently acquired Porsche’s IT consulting arm, MHP, for $373 million alongside a five-year IT modernisation deal worth $1.45 billion. Similar transactions have involved Wipro, Infosys, HCLTech and WNS over the past two decades, with activity accelerating recently. While these deals provide access to new markets, talent and client ecosystems, they also raise questions about whether IT firms are genuinely building capabilities for the AI era or simply acquiring growth. NASSCOM strongly responds to DHS’ proposal to fix H-1B visa fee at $103,265 The Hindu | 25 August 2026
IT firms turn to bundled deals to weather AI deflation The Economic Times | 26 August 2026 Indian IT services companies are increasingly using deals that combine acquisitions with long-term service contracts as AI reshapes outsourcing and clients reconsider captive operations. TCS’s recent $1.4 billion Porsche deal, involving the acquisition of its IT arm MHP, is the latest example. HCLTech, Tech Mahindra, LTM and Wipro have also completed similar transactions. Industry experts attribute the resurgence to AI-driven business restructuring and economic pressures on European companies, partly linked to intensifying competition from China. These factors are encouraging firms to sell or restructure their internal technology and service operations.
Consumer Electronics OnePlus, OPPO, Samsung raise smartphone prices as India's market slows down Business Standard | 19 August 2026 Smartphone prices in India are rising again as major brands grapple with higher memory and component costs amid a slowing domestic market. OnePlus, OPPO and Samsung have increased prices across several models, with the latest hikes ranging from ₹1,000 to ₹5,000 depending on the device and variant. OnePlus has revised prices five times in nine months, while Samsung has made nine revisions in eight months. Rising costs are also forcing manufacturers to streamline their product portfolios and reduce the number of models and configurations available to consumers. ‘Chipflation’: Electronics see years of price hikes replicated in 6 months The Indian Express | 24 August 2026 The global AI investment boom has created a shortage of memory chips, pushing up the cost of consumer electronics in India. According to government CPI data, prices of products such as mobile phones, televisions, air conditioners, refrigerators, washing machines and computers rose sharply between January and July 2026. The pace of increases has far exceeded previous years, with some products witnessing in six months price rises that earlier took several years to materialise, highlighting the growing impact of AI-driven component demand on consumers.
Telecom Elon Musk's Starlink reapplies for India approval of satellite network with direct-to-device tech The Economic Times | 20 August 2026
Jio Platforms IPO gets SEBI nod: Rs 27,500 crore debt repayment plan, $100 billion valuation in focus Business Today | 28 August 2026
EV’s & Auto Electronics EV charging startups explore peer-to-peer solar power trading The Economic Times | 21 August 2026
Govt seeks sales estimates from e-truck, e-bus makers for new financing scheme Mint | 26 August 2026 The government is assessing demand for electric buses and trucks as it considers a new financing support scheme for electric commercial vehicles. An initial proposal discussed during stakeholder consultations envisaged a ₹9,852 crore budget to support 50,000 e-buses and 50,000 e-trucks over five years. The scheme could mark the government’s first major push for private intercity electric buses. Manufacturers have been asked to provide future sales estimates to help determine targets and charging infrastructure requirements. India’s e-bus market has recently rebounded, with sales rising 37% to 5,356 units in FY26.
Defence & Solar DRDO invites private firms as strategic weapon partner The Economic Times | 18 August 2026
Aatmanirbhar Bharat Defence: Rs 3,070 crore Aatmanirbharta push: 405 key defence items to be indigenised The Times of India | 19 August 2026 The Defence Ministry has issued its sixth Positive Indigenisation List (PIL), covering 405 strategically important defence items with an estimated business potential of ₹3,070 crore. The move aims to reduce import dependence and strengthen domestic defence manufacturing. The list includes components, sub-systems, spares and raw materials for helicopters, Su-30MKI and Tejas aircraft, tanks, warships and missile systems. It also covers radars, sonars, communication systems and specialised ammunition. The designated items will progressively be sourced exclusively from Indian manufacturers. India, Japan eye warship building and design-manufacturing synergy The Economic Times | 20 August 2026 India and Japan are expanding defence cooperation in the maritime sector, identifying warship construction, mine countermeasures and ship repairs as potential areas for collaboration. During a meeting between Defence Minister Rajnath Singh and Japanese Defence Minister Shinjiro Koizumi, the two countries reaffirmed their commitment to a free and open Indo-Pacific. They also signed a Memorandum of Arrangement on Maritime Security Cooperation, creating a framework for closer ties between the Indian Navy and Japan Maritime Self-Defense Force, including information sharing, search and rescue, and disaster relief operations. Shortage of engineers becomes a bottleneck for Ukraine's defence-tech Moneycontrol | 25 August 2026 Ukraine’s rapidly expanding defence industry is facing a severe shortage of skilled workers, threatening its ability to innovate at the pace required by the war. Billions of dollars in investment and urgent battlefield demand have created thousands of defence companies, particularly in drone technology, but engineers and experienced production specialists remain scarce. Companies are competing aggressively for talent, offering substantially higher salaries and recruiting retired professionals. Ukraine’s shrinking working-age population, worsened by the 2022 Russian invasion, has intensified the problem despite defence technology companies rapidly expanding their workforces. DRDO to transfer missile technology to Indian defence industry The Hindu | 25 August 2026
MSME MSMED amendment bill could be an 'IBC moment' for small enterprises: Report Business Standard | 17 August 2026 The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, could become an “IBC moment” for small businesses by improving payment discipline among buyers, according to a Crisil group report. The legislation introduces time-bound mechanisms for resolving payment disputes and strengthens the enforcement of awards. Much like the Insolvency and Bankruptcy Code changed borrower behaviour by increasing the consequences of default, the proposed framework could discourage delayed payments and help MSMEs unlock much-needed working capital. Sebi plans overhaul of SME listing framework The Times of India | 19 August 2026
Beyond the bill: How India is rewriting the rules for MSMEs The Economic Times | 24 August 2026 India’s new MSMED Bill aims to reshape the operating environment for micro, small and medium enterprises through faster payments, simpler dispute resolution, reduced compliance burdens and a more growth-friendly classification framework. In a conversation with ET Digital, Bharat Khera, Secretary, Ministry of MSME, discusses how the proposed reforms could improve the ease of doing business for small enterprises. The focus is also on bridging the gap between policy intent and implementation while enabling MSMEs to expand without fear of losing regulatory benefits. TOP
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Indian robotics and hardware startups are facing growing disruption as China increasingly denies visas to Indian executives. The restrictions are affecting companies that rely on frequent travel to meet Chinese suppliers, manage supply chains and track technological developments. Some startups are exploring alternatives in Hong Kong, Taiwan and Singapore, although smaller companies may find shifting suppliers difficult and costly. The curbs are also affecting automotive and electronics firms. They come as India's robotics and physical AI sector gains momentum but remains heavily dependent on China’s advanced manufacturing and component ecosystem.
OpenAI says its new in-house Jalapeno AI chip outperformed Nvidia’s GB300 in tests measuring energy efficiency and response speed. Developed with Broadcom, the processor is expected to begin supporting OpenAI’s AI models later this year as the company expands its own computing infrastructure. Jalapeno is designed to deliver both high throughput and low latency, potentially allowing OpenAI to serve more users at lower costs while providing faster responses where required. Its operation at relatively low power could also help reduce data-centre energy costs.
India’s semiconductor startups are finding it difficult to secure the larger investments needed to move from chip design and early production to commercial-scale manufacturing. While semiconductor and physical-AI companies raised $523.3 million across 44 deals in 2025, funding activity narrows sharply beyond the seed stage. Between 2023 and 2026, the sector recorded 94 seed and angel deals but only 20 Series A deals, highlighting a significant funding gap in scaling promising hardware and semiconductor ventures.
NASSCOM has strongly responded to a U.S. proposal to impose a $103,265 fee on new H-1B visa applications, stressing the programme’s role in addressing temporary skill shortages. The proposed Department of Homeland Security regulation is open for public comments for 30 days and would apply to cap-subject H-1B petitions. The U.S. administration says the fee would help recover immigration-system costs and encourage employers to hire and train American workers. NASSCOM, however, noted that Indian technology companies have already significantly reduced their dependence on H-1B workers.
Starlink has renewed its push to expand satellite communication services in India by seeking approval for its second-generation, or Gen 2, satellite constellation. The new application includes advanced capabilities such as direct-to-device connectivity. India’s space regulator, IN-SPACe, had earlier rejected the company’s proposal for the 30,000-satellite constellation because certain features and spectrum bands did not conform to regulations. Starlink currently has approval for its Gen 1 constellation. Approval for Gen 2 could significantly strengthen its position in India’s emerging satellite communication market.
Jio Platforms has received SEBI approval for its proposed IPO, bringing the Reliance-backed digital and telecom company closer to what could become India’s largest-ever public listing. The company plans to issue fresh shares worth about $3.8-4 billion, with approximately ₹27,500 crore earmarked for debt repayment and the remainder for general corporate purposes. The IPO could value Jio Platforms at over $100 billion, offering investors a standalone opportunity to participate in one of India’s largest digital businesses.
Indian EV charging startups are exploring peer-to-peer energy trading platforms that allow households and other solar power producers to sell surplus electricity directly to EV owners. Companies including Kazam Energy, Pulse Energy, Powerchange and YoGrid are participating in pilots built on the India Energy Stack. The platforms match electricity buyers with solar producers while transactions are settled through power distribution companies. Pulse Energy has facilitated 700–800 trades since February. The model could offer solar producers higher returns, with P2P electricity sales fetching around ₹5 per unit compared with ₹3.50 through discoms.
The DRDO has invited Indian private companies to qualify for the development and production of strategic missile and bomb systems, opening a new role for the private sector in strategic weapons manufacturing. Companies will be shortlisted based on technical, financial and production capabilities before receiving project-specific tenders. At least two firms will be selected for each project under a development-cum-production partner model, working with DRDO on prototypes before receiving production orders. Applicants must hold defence manufacturing and explosives-handling licences, meet financial thresholds and demonstrate the capacity for large-scale production.
SEBI is preparing a comprehensive review of India’s SME listing framework after identifying shortcomings in trading, market making, underwriting, listing costs and migration to the mainboard. SEBI chairman Tuhin Kanta Pandey said the existing rules may be restricting the growth of SME-listed companies. The regulator plans to issue a consultation paper proposing reforms. Key concerns include difficulties in trading caused by large lot sizes, ineffective market-making and underwriting mechanisms, and the disproportionately high costs borne by SME-listed companies.
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