VOL XXVI, ISSUE 02

31 January 2025

Limited progress in design, component manufacturing in electronics industry: Economic Survey

Indigenous electronics production increased multifold in the last 10 years to reach Rs 9.52 lakh crore in 2023-24, the Economic Survey said but pointed out that the industry has largely focused on assembly, making limited progress in design and component manufacturing. However, India's electronics market represents 4 per cent of the global market, the survey, which was tabled in Parliament on Friday, said. Programs such as Make in India and Digital India, along with improved infrastructure, ease of doing business, and various incentives, have boosted domestic manufacturing and drawn foreign investments. However, India's electronics market represents 4 per cent of the global market. The industry has largely focused on assembly, with limited progress in design and component manufacturing. According to the survey, domestic production of electronic goods has increased substantially from Rs 1.90 lakh crore in FY15 to Rs 9.52 lakh crore in FY24, registering a compound annual growth rate (CAGR) of 17.5 per cent.

Source: https://www.deccanherald.com/, January 31, 2025

 Presumptive tax regime is likely to draw global talent in electronics

The government’s budgetary proposal for a new presumptive taxation regime for non-Indian residents providing services to electronics manufacturing companies operating in India is likely to help these companies attract top global talent easily, government sources have said. This has been a long-standing demand. Although semiconductor and electronics manufacturing companies currently employ a handful of foreign nationals, manufacturing in both sectors are now moving into their next phase, where the number of foreign nationals working directly or employed to train Indian nationals will increase manifold. By fostering a more predictable tax environment, these measures are expected to attract greater foreign participation, streamline operations, and enable the sector to access top global talent, said Kunal Chaudhary, tax partner at EY India. Under the new presumptive regime, which will take effect on April 1, the government has proposed that only 25 per cent of the total remuneration received by non-residents will be treated as taxable profits.

Source: By Aashish Aryan, https://www.business-standard.com/, February 02, 2025

 POLICY SCAN                                                                              

ELCINA Applauds Union Budget 2025-26: A Transformative Move for India’s Electronics Manufacturing Landscape

ELCINA appreciates the forward-looking Union Budget for 2025-26 presented by Hon’ble Union Finance Minister, Smt. Nirmala Sitharaman. With a vision to transform India into a global electronics manufacturing hub, the budget proposes substantial reforms in tariff rationalization, incentives for manufacturing, and an emphasis on boosting high-tech industries such as semiconductors, artificial intelligence (AI), and lithium-ion batteries.

The Union Budget 2025-26 provides a timely and much-needed push to the electronics manufacturing sector and showcases the government’s commitment to facilitating its growth and make it a global player. The Budget has emphasized its focus on electronics sector by significantly enhancing funding for key areas such as semiconductors and AI, rationalizing tariffs, and incentivizing local production by reducing tariffs on inputs and enhancing allocation for PLI Schemes.

A Transformative Allocation for Electronics & Semiconductor

A Key aspect of the 2025-26 Budget is the dramatic increase in funding for the Ministry of Electronics and Information Technology (MeitY) which highlights the emphasis of the government of this sector.

Funding Allocation Overview:

The allocation of ₹7,000 crore for semiconductor and display manufacturing is a game-changer. It marks an 83% increase, underlining the government’s resolve to reduce India's dependence on foreign-made chips and increase domestic manufacturing capacity.  The 56% higher allocation of Rs 9000 Cr to PLI Schemes augurs well for large-scale electronics and IT hardware manufacturing.

Additionally, the IndiaAI Mission has been allocated Rs 2000 Cr which marks multifold increase of 1,056%, indicating that AI is firmly at the center of India’s future technological growth. The funding boost to SCL Mohali's modernization highlights the strategic priority given to strengthening domestic chip-making capabilities.

Streamlining Tariffs for a Competitive Ecosystem

ELCINA applauds the step taken to simplify the customs tariff structure. Seven tariff rates have been removed, reducing the total tariff rates to eight including zero tariff which will improve efficiency.

Furthermore, 82 tariff lines have been exempted from the Social Welfare Surcharge (SWS), lowering the import costs for several critical inputs and reducing documentation and ease of doing business enhancing competitiveness of domestic manufacturers.

Duty Revisions to Promote Local Manufacturing

The government has made strategic changes to the Basic Customs Duty (BCD) on several critical components, with a view to strengthening the domestic manufacturing base. These revisions aim to reduce reliance on imports and encourage local production. Key revisions include:

While BCD on inputs have been reduced, duty on IFPD has been increased to encourage local manufacturing of the final product. ELCINA feels that this will provide a significant boost to the domestic manufacturing of television panels, interactive flat panels, and to Ethernet switches. However, in subsequent years these inputs, such as Open Cell for TV Panel and Parts of Open Cells also should be manufactured locally to further enhance value addition.

Reduction in Basic Customs Duty (BCD) from 2.5% to Nil on key inputs for mobile phone manufacturing. This includes critical inputs/parts or sub-parts for manufacture of PCBA, Camera Modules, Connectors, Wired Headsets, Microphones & Receivers, USB Cables, and Fingerprint Readers/Scanners. As per demand of the Mobile phone industry, this move aims to reduce production costs, enhance the competitiveness of India's mobile phone sector and increase value addition.

We believe that the above two steps revising duty structure would encourage the growth of module manufacturing and components eco-system.

Boost to Lithium-Ion Battery & EV Ecosystem: In a clear move to bolster India’s green energy transition, the budget proposes duty-free imports for lithium-ion battery manufacturing equipment. Additionally, new incentives have been introduced for the production of EV batteries, with 35 capital goods added for EV battery manufacturing and 28 for mobile phone battery production.

These measures are expected to drive significant growth in the electric vehicle (EV) sector, which is poised to be a major contributor to India’s clean energy goals. With this support, India is set to become a global leader in EV and energy storage solutions.

Strengthening the ‘Make in India’ Vision: The Union Budget 2025-26 also aligns with the government’s long-term ‘Make in India’ vision by correcting inverted duty structures and reducing dependency on imports. This budget supports local component manufacturing and incentivizes sectors such as electric vehicles (EVs) and energy storage, which are critical to India’s transition toward a greener and more sustainable future.

Trade Facilitation & Regulatory Ease: The budget also reduces regulatory burdens on importers by amending the Customs (Import of Goods at Concessional Rate of Duty for Specified End Use) Rules, 2022. Key amendments include extending the time limit for fulfilling end-use obligations from six months to one year and replacing monthly compliance filings with quarterly statements. This has been a long standing recommendation from ELCINA and will bring much-needed relief to component manufacturers who need to import inputs at concessional rates.

Dr. Sasikumar Gendham, President of ELCINA and Managing Director of Awesense Five, commented: “The Union Budget 2025-26 has set the stage for India’s rise as a global electronics manufacturing powerhouse. The government's focus on enhancing semiconductor production, increasing support for AI, and boosting the PLI scheme will provide a strong foundation for the sector's future growth. The simplified tariff structure and revised duties are steps in the right direction to foster a competitive manufacturing environment in India."

Shri Rajoo Goel, Secretary General, ELCINA, added: "We welcome the significant reforms introduced in this budget, particularly the focus on tariff rationalization and increased funding for key sectors like semiconductors, AI, and EV manufacturing. However, to achieve self-reliance in electronics manufacturing, we urge the government to introduce a dedicated Component Manufacturing Incentive Scheme and allocate a dedicated fund for the same. This is vital for driving investments in core components and their raw materials, creating a sustainable eco-system and strengthening our position in the global electronics supply chain."

ELCINA strongly believes that the measures outlined in the Union Budget 2025-26 will act as a catalyst in realizing India’s vision of becoming a global leader in electronics manufacturing. There is a need to maintain this momentum and provide necessary incentives to promote development and manufacturing of components and raw materials. The revised enhanced investment and sales turnover limits proposed in the budget are a step in the right direction as this will strengthen MSME’s.

By promoting local production, encouraging innovation in high-tech industries, and simplifying trade regulations, the government has laid a solid foundation for the future of India’s electronics sector. As India moves forward with these transformative reforms, ELCINA remains committed to working closely with the government and industry stakeholders to drive growth, innovation, and self-reliance in the electronics manufacturing sector.

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         INDUSTRY  SCAN                                                                             

General

Jagiroad semiconductor plant to bring Assamese youth back home: CM Sarma

Chief Minister Himanta Biswa Sarma has expressed confidence that the upcoming semiconductor plant in Jagiroad will serve as a catalyst for reversing the trend of youth migration, encouraging many Assamese to return to their home state for employment opportunities. Speaking on the progress of the plant's construction, Sarma highlighted a significant shift as many young professionals working outside Assam have already returned. Following the commencement of construction at the Jagiroad semiconductor plant, a large number of Assamese youth working outside the state have decided to come back and offer their services to their homeland. Sarma also shared that his government is engaging with various industrialists to boost local employment further. The Chief Minister also expressed optimism regarding the timeline of the project, stating that the construction and chip production could commence by the end of the year.

Source: https://assamtribune.com/, February 2, 2025

MoSPI and IIIT-Delhi Collaboration to Modernize Official Statistics

In a significant step towards modernizing India’s National Statistical System, the Ministry of Statistics and Programme Implementation (MoSPI) has signed a Memorandum of Understanding (MoU) with Indraprastha Institute of Information Technology, Delhi (IIIT-Delhi) under its Data Innovation Lab initiative. The agreement, signed on January 30, 2025, aims to enhance data collection, processing, and dissemination through cutting-edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Big Data Analytics. The Data Innovation Lab was launched in July 2024 as part of MoSPI’s efforts to bring research-driven solutions into official statistics. It serves as a hub for leveraging emerging technologies to improve data quality and enable real-time analytics. Over the past year, MoSPI has undertaken several initiatives to reform and modernize statistical methodologies, making them more responsive to the needs of policymakers and stakeholders.

Source: https://egov.eletsonline.com/, February 01, 2025

Two-Wheeler EV Sales Jump 24% MoM In January, Ola Electric Reclaims Top Spot

Bhavish Aggarwal-led Ola Electric reclaimed its top position in India’s electric two-wheeler (E2W) market in January 2025, surpassing legacy players TVS Motor and Bajaj Auto in terms of escooter sales. This comes after Ola Electric lost the title to Bajaj Auto and TVS Motor in December 2024 amid rising competition in the two-wheeler EV space. Total electric two-wheeler registrations in India climbed nearly 24% month-on-month (MoM) to 91,264 units in January, according to Vahan data as of January 31, 2025. In December 2024, two-wheeler EV sales hit an 8-month low of 73,651 units. The uptick in E2W registrations was led by Ola Electric, which saw registrations of its electric two-wheelers zoom 64% to 22,656 units in January from 13,794 units in the preceding month. With this, its market share in the electric two-wheeler market increased to 25% in January from 19% in the previous month.

Source: By Amit Singh, https://inc42.com/, February 02, 2025

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Information Technology

India to take up Biden's AI chip export curbs with Trump govt

India will raise the issue of the US imposing a country-specific cap on exports of AI compute and foundational models with the incoming Donald Trump administration, a senior official told ET. The Ministry of Electronics and Information Technology (MeitY) has held "initial discussions" with various arms of the government, including national security advisor (NSA) Ajit Doval's office, and has shared analysis and concerns pertaining to the move by the outgoing Joe Biden US administration. "We really have to take it up with the new government once it comes in," the official said. The cap could be detrimental to India's tech industry in the long term even if it's not an immediate crisis for the country, the person added. The government will raise the issues under the India-US Initiative on Critical and Emerging Technologies (iCET) framework, the official said.

Source: By Surabhi Agarwal, January 21, 2025

Budget 2025: Smartphones, TVs To Get Cheaper? What FM Nirmala Sitharaman Said

The FM, in her eighth straight Budget speech, proposed to add 28 additional capital goods for mobile phone battery manufacturing to the list of exempted capital goods. This will boost the manufacturing of domestic lithium-ion batteries for phones and the overall smartphone ecosystem. The exemption of duties will also likely reduce the prices of smartphones. The custom duty on inputs/parts and sub-parts of PCBA, camera module, connectors and inputs or raw materials for the use in the manufacturing of wired headsets, microphones and receivers, USB cables, fingerprint readers/sensors of mobile phones has been reduced from 2% to zero. Also, custom duty on specified inputs/parts (chip on film, PCBA, glass board/substrate cell) for use in the manufacturing of open cells of TV panels of LED/LCD TV has been fully exempted.

Source: https://www.ndtvprofit.com/, February 01, 2025

India considering lowering tariffs on some high-end products from US

India is considering lowering tariffs on some high-end products from the United States, including specific steel, luxury motorcycles, and electronic goods, a report in NDTV Profit said, citing sources. This move, expected to be confirmed when Finance Minister Nirmala Sitharaman presents the budget on Saturday, might not significantly impact Indian industries. India currently imposes duties of over 100 per cent on 20 items imported from the US. The potential tariff cuts come just a day after US President Donald Trump criticised India, China, and Brazil for imposing high tariffs. During a conversation with House Republicans, Trump stated, “We’re not going to let that happen any longer… we’re going to put America first,” referring to these countries as “tremendous tariff makers.” His comments reflect ongoing frustrations with trade imbalances, particularly with countries that impose high duties on US goods.

Source: By Md Zakariya Khan, https://www.business-standard.com/, January 29, 2025

Raw material export, import of finished products can’t be accepted: Modi

Prime Minister Narendra Modi called innovation and quality products two pillars of the expansion of the Indian economy while stressing rapid growth is impossible only through raw material export. He underlined that the export of raw materials and import of finished products cannot be accepted and that this trend and value addition outside the country was being changed. Modi called innovation in the service sector and quality products two pillars of the economy’s expansion. “The country’s rapid growth is not possible only through the export of raw materials. Hence, we are changing the entire ecosystem and working with a new vision,” said Modi in his inaugural speech at the two-day Utkarsh Odisha Conclave of investors in Bhubaneswar.

Source: By Debabrata Mohanty, https://www.hindustantimes.com/, January 28, 2025

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Consumer Electronics

India's semiconductor market to grow at 13%, reach $103 bn by 2030

India's semiconductor market is expected to grow from $52 billion (Rs 4.5 trillion) in 2024 to $103.4 billion (Rs 9 trillion) by 2030, says a report by Business Standard. The report, assessed by The Financial Express, attributes this growth to major sectors including mobile handsets, information technology (IT), telecommunications, consumer electronics, automotive, aerospace, and defence. Mobile handsets, IT, and industrial applications alone contribute to nearly 70 per cent of the semiconductor industry's revenue and are anticipated to remain the primary drivers of growth. India's semiconductor consumption market is projected to reach $52 billion in 2024-25 and is expected to grow at a strong compound annual growth rate (CAGR) of 13 per cent through to 2030. Sectors such as automotive and industrial electronics present considerable opportunities for added value.

Source: https://www.business-standard.com/, January 29, 2025

Samsung to locally manufacture S25 series of AI smartphones in Noida plant

South Korea’s Samsung Electronics Co Ltd will locally manufacture its latest Galaxy S25 series of flagship AI smartphones at its Noida facility in India, a top company executive said. Indian engineers played a significant role in the development of the S25 series' AI features. The S25 series, equipped with the powerful Snapdragon® 8 Elite chipset, aims to enhance user experience with improved performance and AI capabilities. Samsung has three R&D centers in India and its Bengaluru research unit is its biggest outside South Korea. Park was speaking in San Jose shortly after Samsung announced a high-octane launch of its Galaxy S25 series of premium AI smartphones, including the Galaxy S25 Ultra, the Galaxy S25+ and Galaxy S25, at the Galaxy Unpacked event in the Silicon Valley.

Source: By Kalyan Parbat, https://economictimes.indiatimes.com/, January 22 2025

Appliances, display business to contribute 50% to India topline in next 3 years: Samsung's J B Park

Consumer electronics major Samsung expects its appliances and display business to scale up substantially in India, contributing to half of the topline in the next three years, J B Park, President & CEO of Southwest Asia has said. The current penetration of consumer electronic products in India is still low, a major market for the South Korean Chaebol, however, it is expected to scale up, helped by factors such as the rise of the Indian economy and middle class. Samsung is aggressively expanding its play into the consumer electronics segment by democratising the latest features such as AI in the appliances and display segment (QLED and OLED TVs), which is helping it to gain significant market share in the premium segment. However, penetration of India's smartphone segment has matured and is slightly behind the developed countries, where people carry more than one device for their needs.

Source: https://economictimes.indiatimes.com/, January 22, 2025

India moving up the global electronics value chain: Rajeev Chandrasekhar

India has established a notable presence in global electronics value chains and innovation over the past 4 to 5 years, driven by the Union government's emphasis on export-led electronics manufacturing, said former Union Minister of State for IT Rajeev Chandrasekhar. Delivering a special address at Times Network's Digit Zero1 Awards 2024, Chandrasekhar highlighted that global and Indian electronic brands have begun manufacturing in India in the last 3-4 years due to a strategic policy shift. his transformation across the value chain-design, manufacturing, and testing-has been enabled by the Government of India's pivot from an import substitution framework to export-led electronics manufacturing and design framework.

Source: https://economictimes.indiatimes.com/, January 21, 2025

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Telecom

Government allocates ₹95,298 crore to Telecom & IT sectors

Finance Minister Nirmala Sitharaman on Saturday, February 1, proposed ₹95,298 crore for the information technology and telecommunications sectors. While presenting the Union Budget for 2025-26, Sitharaman also proposed to reduce the basic customs duty on carrier-grade ethernet switches from 20% to 105, bringing the component at par with non-carrier-grade ethernet switches. The compensation the government pays telecom service providers for creating infrastructure saw a substantial jump — ₹28,400 crore, up from ₹13,700 crore last year. In the full Budget for 2024-25, presented in July 2024, the Centre announced a substantial allocation of ₹1.28 lakh crore for telecom projects and public sector firms under the Department of Telecommunications, with a significant emphasis on BSNL.

Source: By Vijay Anand, https://www.cnbctv18.com/, February 01, 2025

boAt demands anti-dumping duty on realme earwears

Smart wearable maker Imagine Marketing, which sells products under the boAt brand name, has asked the government to impose anti-dumping duty on realme earwears, according to sources. boAt-led True Wireless Stereo (TWS) audio wearable segment had around 34 per cent market share in the second quarter of 2024, while realme was ranked 5th with 6.4 per cent share, according to the market research firm IDC. boAt has approached the government for imposing anti-dumping duty on realme TWS. Senior officials from boAt have also presented their case to the Ministry of Electronics and IT. The proposal is being evaluated by the government. boAt had posted a 5.1 per cent year-on-year growth in the second quarter of 2024, while realme had registered growth of 77.1 per cent in the second during the same quarter.

Source: https://economictimes.indiatimes.com/, January 29, 2025

Global tech cos may move court against govt's 6GHz decision

Technology majors such as Google, Facebook, Microsoft and Cisco, smarting from a bitter defeat in India in their bid to gain access to the coveted 6GHz airwaves, are open to challenging the government's decision in court. India recently approved the auction of low-frequency 6GHz spectrum band for use by telcos to offer wireless telephony services using technologies like 5G and 6G, rejecting tech companies' claims to these airwaves. Tgovernment to delicense the lower 500 MHz of the 6GHz band and an additional 160 MHz from the 300 MHz to be held back until 2030. But clearly our recommendations have fallen flat as per the latest decision. Technology company executives separately told ET that there are sufficient grounds to challenge the decision in courts as it does not align with global practices.

Source: https://economictimes.indiatimes.com/, February 01, 2025

5G services launched in all states, UTs by October 2024: Economic Survey 2024-25

All states and union territories had 5G services launched by October 2024, according to the Economic Survey 2025 released on Friday. Currently, 5G services are available in 779 out of 783 districts, with over 4.6 lakh 5G Base Transceiver Stations (BTSs) installed nationwide. Indian Telecom service providers such as Reliance Jio and Bharti Airtel, have been rolling out the 5G network across the country since October 2022. The rollout of 5G services, along with the introduction of new policies aimed at enhancing telecommunications infrastructure and user experience, has played a crucial role in digital connectivity. The survey also highlighted that India’s telecom sector is expanding, driven by the smartphone boom, surging data consumption, and the introduction of technologies like 5G.

Source: https://www.newindianexpress.com/, January 31, 2025

Government allocates ₹95,298 crore to Telecom & IT sectors

Finance Minister Nirmala Sitharaman on Saturday, February 1, proposed ₹95,298 crore for the information technology and telecommunications sectors. While presenting the Union Budget for 2025-26, Sitharaman also proposed to reduce the basic customs duty on carrier-grade ethernet switches from 20% to 105, bringing the component at par with non-carrier-grade ethernet switches. The compensation the government pays telecom service providers for creating infrastructure saw a substantial jump — ₹28,400 crore, up from ₹13,700 crore last year. In the full Budget for 2024-25, presented in July 2024, the Centre announced a substantial allocation of ₹1.28 lakh crore for telecom projects and public sector firms under the Department of Telecommunications, with a significant emphasis on BSNL.

Source: By Vijay Anand, https://www.cnbctv18.com/, February 01, 2025

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EV’s & Auto Electronics

India’s Bold Electric Mobility Revolution: Budget Boost Sparks Change

India is charging ahead with a thrilling boost to its electric mobility initiative, as unveiled in the Union Budget 2025-26. With a funding leap of over 20%, the allocation for electric mobility schemes surged from Rs 4,434.92 crore to an impressive Rs 5,322 crore. This progressive enhancement aims to transform road transport into a sustainable powerhouse, phasing out fossil fuels and nurturing the burgeoning electric vehicle (EV) industry. Leading the charge is the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, witnessing a staggering increase of over 114% to Rs 4,000 crore. This ambitious program, launched in September 2024, promotes various electric vehicles and the installation of public charging stations. Another key player, the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC), doubled its budget to Rs 12 crore, fueling India’s potential to compete globally in EV manufacturing and creating countless job opportunities.

Source: By Clara Maxfield, https://motopaddock.nl/, February 01, 2025

EV Battery Production Gets Boost, BCD Exemption On 35 Additional Goods

To support the demand for electric vehicles in the country, the union minister announced the addition of 35 capital goods to the list of materials exempted from Basic Custom Duty (BCD). These exemptions are aimed at bringing down the cost of manufacturing EV batteries in India. Specifically, it provides exemption for crucial raw materials like scrap from lithium-ion batteries, Cobalt powder, waste cobalt, lead, zinc, along with 12 other critical minerals. The initiatives presented in Budget 2025 are anticipated to benefit local manufacturing, leading to increased job opportunities within the industry. With the rising demand for electric vehicles in the country, these steps aim to establish India as a strong contender in the international EV market.

Source: Amulya Raj Srinet, https://www.ndtv.com/, February 01, 2025

Hero MotoCorp’s electric vehicle business to become fully independent unit

Hero MotoCorp Ltd announced on Friday that it would move the electric vehicle and Emerging Mobility Business Unit (EMBU) into a fully independent unit from February 1. The EMBU was created by the automaker in 2019 to drive innovations in emerging mobility, including electric vehicles. The EV & Emerging Mobility Business Unit will transition to a fully independent and empowered unit, "leading the EV revolution and next-generation mobility under the mentorship of the Executive Chairman Pawan Munjal," the company said in an exchange filing. "As part of this strategic shift, the Product Development teams across EMBU, Hero Tech Centre Germany (TCG) and Hero Centre for Innovation and Technology (CIT) will work in synergy to set new industry benchmarks."

Source: By Kiran Murali, https://www.autocarpro.in/, January 31, 2025

Auto stocks rally as budget boosts EV adoption with Solar PV cells and battery ecosystem

Auto stocks surged on February 1 after the Union Budget 2025 introduced measures to accelerate electric vehicle (EV) adoption and ramp up infrastructure. Finance Minister Nirmala Sitharaman announced a slew of initiatives to build an ecosystem for solar PV Cells & EV Batteries. Investors cheered the announcements, driving gains across key auto stocks. Maruti Suzuki rallied over 6 percent as the Budget’s focus will also likely benefit the company as it is set to launch its maiden electric vehicle in 2025. The company’s first EV, the E-Vitara, set to launch under its premium NEXA brand, will come with a 500+ km range, advanced safety features, and global market aspirations. The positive momentum also stems from solid January sales which witnessed an uptick of 6.5 percent. Mahindra & Mahindra, the top-performing Nifty 50 auto stock of 2024, added over 2 percent, buoyed by incentives for local battery manufacturing.

Source: https://www.moneycontrol.com/, January 31, 2025

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Defence & Solar

Allocation to power sector up 30%, rooftop solar plan gets big push

Finance minister Nirmala Sitharaman has allocated Rs 48,396 crore towards the power sector, including new and renewable energy, in her Budget for the financial year 2025-26. The outlay is an increase of 30 percent over the previous year’s allocation of Rs 37,143 crore (revised estimate) and 22 percent over the budget estimate of Rs 39,602 crore. Of the Rs 48,396 crore, the power ministry received Rs 21,847 crore and the ministry of new and renewable energy (MNRE) Rs 26,549 crore, the Budget document tabled in the Parliament on February 1 shows. The biggest share of Rs 16,021 crore from the power ministry funds went to the revamped distribution sector scheme, a key component of which is prepaid smart metering, system metering, and distribution infrastructure upgrades. The scheme received Rs 12,665 crore (RE) in the FY25 Budget.

Source: By Sweta Goswami, https://www.moneycontrol.com/, February 01, 2025

Govt allocates ₹1,500 crore to solar power grids

The Union Budget of 2025 on Saturday (February 1) has allocated ₹1,500 crore to the solar power (grid) segment, reinforcing India’s commitment to renewable energy transition. Last year, the Finance Minister allotted over ₹8,000 crore to the segment, significantly up from ₹4,757 crore earmarked in the FY23-24 revised estimate. In recent years, the country's solar power sector has experienced rapid growth, aligning with the government’s agenda for sustainable development and energy security. In 2022-23, the allocation surged to ₹3,304.03 crore, a record high compared to ₹2,369.13 crore in 2021-22. Even in 2020-21, when the allocation stood at ₹2,449.65 crore, it was already a significant amount. These allocations mark a transformative period in financial planning and resource distribution, with each year setting a new benchmark for future growth.

Source: By Ashutosh Patki, https://www.cnbctv18.com/, February 01, 2025

PM-Surya Ghar crosses 8.5 lakh solar rooftop units as India targets 1,800 GW green energy by 2047

PM-Surya Ghar, India's flagship solar initiative, has crossed 8.5 lakh rooftop installations, marking significant progress towards the goal of powering 10 million households with solar energy, according to Minister of New and Renewable Energy, Pralhad Joshi. The government aims to achieve 500 GW of renewable energy capacity by 2030, with a long-term vision of 1,800 GW by 2047. The target would position India as a global leader in renewable energy while meeting its energy needs and contributing to global decarbonisation efforts. The minister said that India's renewable energy capacity has already increased from 75 GW in 2014 to over 220 GW showing notable growth in the sector.

Source: https://www.zeebiz.com/, January 31, 2025

Union Budget: Centre sets aside ₹6.8 lakh crore for defence

The Centre on Saturday set aside more than ₹6.8 lakh crore for the defence sector in the Union Budget for FY2025-26, including ₹1.8 lakh crore for the modernisation of the military, whose shopping list includes new fighter jets, helicopters, warships, submarines, tanks, artillery guns, drones, and rockets and missiles. A significant portion of the modernisation outlay has been allocated for buying weapons, systems and equipment from domestic suppliers to achieve the self-reliance goal, a top priority for the Narendra Modi government. The year’s allocation is 9.5% higher than what it was in the budget estimates ( ₹6.22 lakh crore) for the financial year 2024-25, and around 6% more than last year’s revised estimates ( ₹6.41 lakh crore), budget documents showed. To be sure, finance minister Nirmala Sitharaman did not spell out the defence allocation in her budget speech.

Source: By Rahul Singh, https://www.hindustantimes.com/, February 01, 2025

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MSME

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

Budget 2025: Export Promotion Mission to boost MSME exports

Finance Minister Nirmala Sitharaman presented four engines of development for Viksit Bharat - agriculture, micro, small and medium enterprises (MSMEs), investments and exports. Sitharaman, while presenting Budget 2025 today in the Parliament, defined exports as the fourth engine of growth, and said that an Export Promotion Mission, jointly driven by the Ministries of Commerce, MSME and Finance, will help MSMEs, which account for 45 percent of exports, tap into the export market. A digital public infrastructure, BharatTradeNet (BTN) for international trade, has been proposed as a unified platform for trade documentation and financing solutions. The finance minister also proposed various exemptions on duties and tariffs to boost exports. "India’s seafood exports in the last financial year touched an all-time high of more than Rs 60,000 crore.

Source: https://www.itln.in/latest-news, February 01, 2025

Boost for MSMEs, classification investment cap to be hiked 2.5 times

Finance Minsister Nirmala Sitharaman, while presenting Union Budget 2025 mentioned the government would prioritise the MSME (micro, small and medium enterprises) sector of the country. The government said that the investment limit for MSME classification to be made 2.5 times. Also, the turnover limit for MSME classification would be doubled. This would not only pace up the country's manufacturing sector, scale up and innovate the MSME sector, but would also provide employment opportunities for countless youth across the country. To help them achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively. This will give them the confidence to grow and generate employment for our youth.

Source: https://www.indiatoday.in/, February 01, 2025

MSMEs: Govt To Start National Manufacturing Mission To Boost Make In India

In her budget, Finance Minister Nirmala Sitharaman has said that the central government will set up a national manufacturing mission for small, medium and large industries to strengthen Make In India by providing policy support and execution. Sitharaman stated that investment and turnover limits for the classification of micro, small and medium enterprises (MSMEs) enhanced. She added that with quality products, MSMEs are responsible for 45 per cent of India's exports. Notably, the cash-strapped MSME sector contributes about 30 per cent to India's gross domestic product (GDP). The union budget 2025-26 has introduced several enhancements to the credit guarantee cover for MSMEs and startups. For micro and small enterprises, the credit limit has been increased from Rs 5 crore to Rs 10 crore, with an expected additional credit of ₹1.5 lakh crore over five years.

Source: https://www.businessworld.in/, February 01, 2025 

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ELCINA Publications

https://elcina.com/roadmap-for-developing-pcb-eco-system-in-india	Roadmap For Developing PCB Eco-System in India Key Findings Indian PCB market and industry size in terms of domestic production, exports, and imports Growth drivers and challenges (needs & gaps) in the Indian PCB industry Growth potential of PCB manufacturing in India and identify enablers for creating & strengthening the domestic value chain Key inputs required viz. investments, technology, and infra eco-system Details of key PCB value chain players – global and domestic, who can be invited to invest to establish a strong PCB industry
https://elcina.com/ems-task-force-report-on-market-industry-analysis-of-ems-sector-in-india	EMS Task Force Report Key Findings Currently EMS Industry (Contract Manufacturing Services) are valued 832 Bn $ and are projected to grow 1055 Bn by 2025. Domestic electronics manufacturing is estimated at USD 75 Bn of which 39 Bn constitutes EMS value. This is divided into 23.5 Bn domestic Mfg. and USD 15.5 Bn PCBS/Sub-Assembly imports. Further USD 53.5 Bn is finished Electronic Goods imports of which USD 17 Bn is EMS value. Thus total EMS opportunity loss is US$ 32.5 Bn (15.5 +17). The report estimates that EMS production can grow realistically from USD 23.5 Bn today to USD 152 Bn by 2025 at CAGR of 45%. This will meet 75% of the countries EMS requirement of US$ 203 Bn by 2025 against a total estimated market of 400 Bn.
https://elcina.com/elcina-task-force-report-on-electronic-components	ELCINA Task Force Report on Electronic Components Key Findings Current status of component manufacturing in India – Areas of competence vs Gaps and inadequacies Components which urgently require investments and growth in domestic manufacturing Emerging technology and new components for upcoming opportunities Constraints and bottlenecks to be addressed Overcoming Policy constraints, WTO (ITA-1) deadlock and Zero Duty issue Strategy for overcoming these constraints Eco-System requirements- Role of Central and State Governments
https://elcina.com/elcina-directory-of-indian-electronics-industry	ELCINA Directory of Indian Electronics Industry 2024-25 Description ELCINA Directory of Indian Electronics Industry – includes the updates on Indian Electronics Industry and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. This handy compendium with its easy-to-read format attracts the attention of a growing number of users (within India and abroad) Apart from electronics industry, the users of this Directory range from financial institutions, commercial banks, FIIs, Consultancy organizations as well as industry promotion institutes across the world….

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FORTHCOMING EVENTS &  GENERAL INFORMATION 

International Events
	XPONENTIAL Euope 18th-20th February 2025 Germany https://www.xponential-europe.com/
	Intelligent Asia 6th- 8th March 2025 Thailand https://www.chanchao.com.tw/IntelligentAsia-Thailand/en/
	Embedded world 2025 11th  – 13th March 2025 Nuremberg, Germany https://www.embedded-world.de/en
	International Battery Seminar & Exhibit 2024 17th -20th March 2025 Orlando, Orlando, USA https://www.internationalbatteryseminar.com/
	IPC APEX EXPO 18th-20th March 2025 Anaheim Convention Center https://www.ipcapexexpo.org/
	Appliance & Electronics World Expo 2024 20 - 23 Mar 2025 Shanghai New International Expo Centre(SNIEC), Shanghai, China https://en.awe.com.cn/
	The International Electronic Circuits 24th -26th March China http://www.cpcashow.com/en/information.asp
	CPCA Show 2025 24- 26 March 2025 http://www.cpcashow.com/en/index.asp

Domestic Events
	EV Asia Expo 12th  – 14th February 2025 Gujarat https://www.evasia.in/
	ET Expo and Automotive Electronics & Testing Show 13th- 15th  February 2025 Pune https://et-automotive.com/
	14th Source India 18th-19th  February2025 Chennai https://event.sourceindia-electronics.com/
	16th ELECRAMA 2025 22nd- 26th February 2025 https://elecrama.com/
	Convergence Expo 19th- 21st 2025 March New Delhi https://www.convergenceindia.org/
	India Electronics Expo 2025 19th- 21st March 2025 Pragati Maidan Delhi https://www.indiaelectronicsexpo.com/

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