VOL XXV, ISSUE 06

31 March 2024

   POLICY SCAN                                                                                    

Notification on Scheme to Promote Manufacturing of Electric Passengers CARS in India Dated 15th March 2024

The Ministry of Heavy Industries has introduced a comprehensive scheme to promote the manufacturing of electric passenger cars (e-4W) in India, leveraging the country's position as the world's third-largest automobile market. With the automotive sector's substantial contribution to India's GDP, transitioning to electric vehicles presents an opportunity for significant growth and environmental benefits.

 Key Scheme Highlights:

• Minimum investment of Rs. 4,150 crore required for setting up manufacturing facilities.

• Manufacturing facilities to be operational within 3 years, achieving a minimum Domestic Value Addition (DVA) of 25%.

• Import of e-4W allowed at reduced customs duty (15%) for a period of 5 years, subject to meeting specific conditions.

• Maximum number of e-4W imports capped at 8,000 per year, with duty foregone limited by investment commitment.

The scheme aims to propel India towards becoming a global manufacturing hub for electric vehicles, fostering economic growth, technological innovation, and environmental sustainability.

Please click for further details:  

https://heavyindustries.gov.in/sites/default/files/2024-03/gazette_notification_15.03.2024.pdf 

DGFT Notification No. 82/2023 dated 27th March 2024: General Authorization for Export of Telecommunication and Information Security Items under SCOMET Category 8A5

The Government of India, through the Ministry of Commerce & Industry, Department of Commerce, Directorate General of Foreign Trade, introduced Notification No. 82/2023-DGFT on 27.03.2024. This notification focuses on the General Authorization for the export of Telecommunication-related items and Information Security items covered under SCOMET Category 8A5. Here's a detailed analysis:

Amendments Introduced:

• The Central Government has amended Para 10.08 of chapter 10 of FTP 2023.

• General Authorization for Export of Telecommunication-related items under SCOMET Category 8A5 Part 1 (GAET), excluding Software & Technology and items referenced in Para 10.15(1).

• General Authorization for Export of Information Security items (GAEIS) under SCOMET Category 8A5 Part 2, excluding Technology.

Policy Implications:

• The notification introduces a policy allowing one-time bulk licenses for the export of Telecommunication-related items and Information Security items under SCOMET Category 8A5 Part 1 and Part 2 respectively.

• Detailed procedures for these General Authorizations will be notified separately via Public Notice.

Significance:

• Notification No. 82/2023-DGFT signifies a significant policy shift, aiming to streamline export processes while ensuring compliance with regulatory frameworks.

• This amendment holds implications for the trade landscape, potentially facilitating smoother export transactions in the specified categories.

This amendment holds promise for enhancing export transactions and contributing to the growth of the relevant sectors.

DGFT Public Notice No. 53/2023, dated 27th March 2024: Procedure for General Authorisation for Export of GAEIS – Category 8A5 Part 2 of SCOMET

Public Notice No. 53/2023 introduces the General Authorization for Export of Information Security items (GAEIS) under SCOMET Category 8A5 Part 2. This streamlines exports, eliminating the need for SCOMET authorization under specified conditions. Applicants must apply online, undergo IMWG scrutiny, and comply with post-reporting requirements. GAEIS excludes military applications, UNSC embargoed countries, and entities of proliferation concern. It's valid for three years, subject to compliance, and underscores the government’s commitment to responsible export practices in Information Security. Key points include:

• Policy & Eligibility: GAEIS allows export/re-export without SCOMET authorization under specific conditions, requiring online application submission with detailed information.

• Review Process: IMWG scrutinizes applications based on submitted documents, ensuring compliance with internal standards and CBIC certification.

• Post-Reporting Requirements: Exporters must provide quarterly reports on GAEIS exports, including end-use certificates. Non-compliance may lead to penalties or suspension/revocation.

• Record Keeping: Exporters must maintain export documents for five years from GAEIS issuance.

• General Conditions & Exclusions: GAEIS excludes items for military use, countries under UNSC embargo, or entities posing proliferation concerns. IMWG reserves the right to deny issuance.

• Validity & Suspension/Revocation: GAEIS is valid for three years, subject to post-reporting requirements, and may be suspended/revoked for non-compliance or proliferation concerns.

The GAEIS procedure streamlines Information Security item exports, emphasizing compliance and preventing misuse. It reflects the government's commitment to responsible export practices. Adherence to guidelines is crucial to avoid penalties or authorization suspension.

DGFT Partners with DHL to enable MSMEs to explore international markets

DGFT partners with DHL to boost e-commerce exports from India. The initiative aims to empower MSMEs by conducting capacity-building sessions and workshops in 76 districts. Commerce Secretary highlights India's digital infrastructure and initiatives like Bharat Mart. DGFT aims to introduce exporters to the digital commerce space, facilitating "Make in India" product exports. Previous collaborations with Amazon India and Shiprocket have led to outreach events promoting e-commerce exports under the District as Export Hub initiative.

Please click for further details.:   https://pib.gov.in/PressReleasePage.aspx?PRID=2014595  

India-EFTA Trade and Economic Partnership Agreement

On March 10, 2024, India signed the Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA), comprising Switzerland, Iceland, Norway, and Liechtenstein. The agreement, approved by the Union Cabinet, aims to boost trade and investment between India and the EFTA countries. Highlights include commitments to promote investments worth USD 100 billion in India over the next 15 years, facilitate job creation, provide tariff concessions, and enhance market access for services. TEPA aligns with India's 'Make in India' initiative, promotes Atmanirbhar Bharat, and is expected to create a significant number of direct jobs for India's young workforce.

Please click for further details.:     https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2013169  

Exchange Rate Customs Notification No. 24/2024 - Customs (N.T.)

The Exchange Rate Notification No. 24/2024 - Customs (N.T.) issued by the Central Board of Indirect Taxes and Customs provides updated exchange rates for converting foreign currencies into Indian rupees or vice versa. The notification supersedes the previous one and specifies rates for various currencies for both imported and exported goods.

Please click for further details.: https://pib.gov.in/PressReleseDetailm.aspx?PRID=2016414  

Customs Notification No. 17/2024-Customs dated 14th March, 2024 :  amend notification No. 57/2017-Customs dated 30.06.2017 so as to modify BCD rates on certain smart wearable devices.

The Government of India, Ministry of Finance, Department of Revenue, has issued Notification No. 17/2024-Customs on March 14, 2024. This notification amends a previous notification (No. 57/2017-Customs) from June 30, 2017. The amendment pertains to smart wearable devices, expanding the definition to include not only smart watches but also other smart wearable devices such as smart rings, shoulder bands, neck bands, or ankle bands. This amendment is made under the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962, in the public interest. The amendment aims to update and broaden the scope of the regulation to reflect technological advancements in wearable devices.

Customs Notification No. 19/2024-Customs dated 15th March 2024: Amend No. 50/2017-Customs, dated the 30th June, 2017 to give concession to EVs imported under of the Ministry of Heavy Industries' Scheme to promote manufacturing of electric passenger cars in India.

Notification No. 19/2024-Customs, issued by the Ministry of Finance on March 15, 2024, introduces amendments to Notification No. 50/2017-Customs. The amendments primarily focus on electrically operated vehicles imported as knocked-down kits.

Key points of the notification:

Amendments in Table Entry (S. No. 526A)

·         Electrically operated vehicles, imported as incomplete knocked-down kits, are specified.

·         Two scenarios are outlined:

·         Components not interconnected and not mounted on a chassis.

·         11. Components interconnected but not mounted on a chassis.

·         Conditions regarding CIF value thresholds and compliance with the Scheme to promote manufacturing of electric   passenger cars in India are stipulated.

·         A provision is included to limit the effect of certain conditions after March 31, 2031.

Explanatory Note:

• Clarifies that the exemption applies even if all components required for assembling a complete vehicle are not imported in the kit, as long as the kit is classifiable under the specified heading.

Addition of Condition 117 in Annexure:

• Importers must furnish a certificate from a designated officer confirming compliance with the Scheme, including holding a valid Approval Letter from the Ministry of Heavy Industries and adherence to prescribed quantity limits.

These amendments aim to regulate the importation of electric vehicles and ensure compliance with the government's initiatives to promote domestic manufacturing in the electric passenger car segment.

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         INDUSTRY  SCAN                                                                             

General

Malaysia and Singapore can partner India in semiconductor strategy.

On March 16, 2024, Prime Minister Narendra Modi spoke at a media conclave reaffirming India's commitment to becoming a semiconductor power within the next five years. The government launched the Indian Semiconductor Mission (ISM) in 2021, allocating ₹76,000 crore for semiconductor manufacturing, packaging, and design units. The ISM is a strategic initiative aimed at bolstering India's semiconductor ecosystem and establishing the country as a global electronics manufacturing and design hub. While the ISM enjoys a specialised and independent business status, it is under the overall purview of the Digital India Corporation. The pandemic highlighted the importance of semiconductor components in numerous businesses as also the fact that most of the chip manufacturing is concentrated in countries such as Taiwan, Japan, Malaysia, Singapore, the US and China. Therefore, it is natural for India, now the third biggest economy in the world, to establish itself as a semiconductor power.

Source: https://www.hindustantimes.com/, March 29, 2024

India to rank among top five globally in semiconductor manufacturing by 2030: Ashwini Vaishnaw

India will be among the top five countries for semiconductor manufacturing within the next five years, union minister for railways, telecommunication, electronics, and information technology Ashwini Vaishnaw said. The construction of the four semiconductor units has also been started in record time, he said. The focus of India’s semiconductor programme was to set up an entire ecosystem instead of throwing all weight behind setting up one chip foundry unit, Vaishnaw said at the Times Now Summit, 2024. Earlier this month, Prime Minister Narendra Modi had laid the foundation stone for the country’s first commercial chip foundry at Dholera in Gujarat. He had also laid the foundation stone for two outsourced semiconductor and assembly testing (OSAT) units at Sanand in Gujarat and Jagiroad in Assam.

Source: https://economictimes.indiatimes.com/, March 29, 2024

SmartSoC Solutions Joins TSMC Design Center Alliance to Boost Semiconductor Innovation in India

SmartSoC Solutions, a leading Indian semiconductor design services company founded in 2016, is excited to announce its membership in the Design Center Alliance (DCA) of TSMC's Open Innovation Platform® (OIP). This partnership signifies a major step forward in SmartSoC's mission to foster indigenous semiconductor solutions tailored to India's burgeoning technological landscape. Established in 2016, SmartSoC Solutions embodies India's rich legacy of innovation, dedicated to developing cutting-edge semiconductor, embedded, and system designs that drive the nation's technological progress. With strategically located design centers in Bangalore, Hyderabad, and Hubli, SmartSoC leverages local talent and expertise to address the unique challenges and opportunities within India's semiconductor industry.

Source: https://www.business-standard.com/, March 26, 2024

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Information Technology

AI ethics. PM Modi to Bill Gates: Aim higher, surpass AI with innovation

Prime Minister Narendra Modi, on Friday, urged the tech industry and tech adopters to focus their energies on competing with artificial intelligence (AI) and challenging it instead of seeing it as a magic tool that makes people lazy and uses it only for basic jobs like letter writing. Modi said in an exclusive interaction with Microsoft Co-founder Bill Gates that efforts must be made to surpass AI’s present capabilities. Modi said that he was pushing AI to recognise and adapt to the myriad languages of India. He also stressed the need to label AI-generated content, cautioning about the deceptive potential of deepfakes.

Source: By BY KR SRIVATS, https://www.thehindubusinessline.com/, March 29, 2024

SEC ramps up hack probe with focus on tech, telecom companies

The U.S. Securities and Exchange Commission is asking technology and telecom companies how they handled the SolarWinds cyber attack in 2020, Bloomberg News reported on Tuesday, citing people familiar with the matter. The hack of information technology company SolarWinds, one of the broadest and most sophisticated cyber attacks in the United States, was identified in December 2020 and gave away access to thousands of companies and government offices that used its products. Hackers were able to use the company's flagship network management software called Orion as a springboard into U.S. government networks and international targets. The regulator has asked for internal communications of affected companies about the cyber attack's impact, probing for gaps in corporate security and for other cyber incidents, the report said, citing people familiar with the matter who did not identify the companies.

Source: https://economictimes.indiatimes.com/, March 27, 2024

Advisory on AI models sent after inconsistent outputs: IT secretary

The information technology secretary S Krishnan on Thursday said that the IT ministry sent an advisory on artificial intelligence to tech companies because the government noticed some generative AI tools changed their answers according to the jurisdiction in which questions were asked, indicating an inconsistency that needed to be addressed. The official was referring to the March 1 advisory which he reiterated was meant only for significant social media intermediaries, that is, social media companies with more than 5 million users in India. In the advisory, the ministry said companies must get explicit permission from the government for all their “under-testing” or “unreliable” artificial intelligence (AI) models before releasing them to users in India.

Source: By Aditi Agrawal, https://www.hindustantimes.com/, March 08, 2024

  TOP

Consumer Electronics

Smart TV prices to go up this year, shipments down 16 pc in India in 2023: Report

Prices of smart TVs are likely to increase in the first half of the ongoing calendar year as prices of panels have gone up in the international market, according to a report on Thursday. The brands are likely to pass on the increase in rates, resulting in a hike in smart TV prices, according to the latest research from Counterpoint's IoT Service. However, the report also expects "smart TV shipments to increase by 9 per cent" this year, as the demand for premium models will increase and consumers will likely upgrade to a larger screen. In 2023, India's smart TV shipments declined 16 per cent, impacted by a hit in the first half due to macroeconomic challenges and excess inventory, according to a Counterpoint Research report on Thursday. The year also witnessed the premiumisation of the TV market, where consumers moved towards premium devices and large-screen smart TVs.

Source: https://www.thehindubusinessline.com/, March 29, 2024

Samsung India nears another milestone in smartphone business.

Samsung India is poised to surpass Rs 80,000 crore in total smartphone revenue this financial year, propelled by about 12% sales volume growth widely outperforming a subdued domestic market, said two people aware of the matter. The company accelerated sales spurred by premiumization with average handset selling prices rising by 22%, higher than the industry average of 17%. The share of no-cost EMI purchases has also increased from 54% to 60% during the year, said Akshay Rao, mobile experience business general manager at Samsung India. Tenure for no-cost EMI schemes too rose to 18 months from 12 months earlier. Rao, however, declined to share or confirm the revenue performance for FY24.

Source: https://economictimes.indiatimes.com/, March 21, 2024

Dixon’s largest order book is in mobiles; IT hardware can be a $1 billion opportunity in next 2-3 years: Saurabh Gupta

Saurabh Gupta, Group CFO, Dixon Technologies, says that there’s a $10 billion opportunity in IT hardware for India. $10 billion worth of IT hardware products are imported into India. So, it is a large opportunity for import substitution and if India is able to do a good job as an industry, if you are able to generate that operating leverage and cost competitiveness, in a few years, yes, it can potentially get exported from India as well. If you look at the whole electronic manufacturing space, India's share in the global electronic space is just 2%. But if you look at the whole government policy framework, as far as the labour pool availability and labour cost in India is concerned, we are looking at a very significant growth potential in this particular sector.

Source: https://economictimes.indiatimes.com/, March 24, 2024

China's latest EV is a 'connected' car from smart phone and electronics maker Xiaomi

Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars with a sporty high-tech sedan. The tech company began accepting orders in China via an app on Thursday night, after founder Lei Jun wrapped up a more than two-hour presentation on the SU7 car by announcing the much-awaited price range: 215,900 yuan to 299,900 yuan (about $30,000 to $40,000). Xiaomi said that it received 50,000 orders for the SU7 in the first 27 minutes after sales opened at 10 p.m. Beijing time (1400 GMT). Government subsides have helped make China the world's largest market for electric vehicles, and a bevy of new makers are locked in fierce competition. Most of the industry's sales have been domestic, but Chinese makers are pushing into overseas markets with lower-priced models, posing a potential challenge to European, Japanese and American auto companies.

Source: https://techxplore.com/, March 28, 2024

TOP

Telecom

Centre plans to geotag Telecom infrastructure

The government is planning to geo-tag key telecom infrastructure, including telecom towers and optical fibre cables, to facilitate coordination, particularly in disaster situations. The mapping of telecom infrastructure will also facilitate setting up of other developmental projects across the country, officials aware of the development told ET. For this, the Department of Telecommunications (DoT) will coordinate with other ministries and state governments so that data can be shared in facilitating setting up of other projects, which require telecom infrastructure as the backbone. Geo-mapping of telecom infra is one of the key issues for DoT in its mission for 2047. The data has to be democratised so that it benefits the society at large.

Source: By Kiran Rathee, https://economictimes.indiatimes.com/, March 27, 2024

Bharti group’s Rs 150 crore bond donation to BJP coincided with Modi government’s telecom U-turn

In 2012, when the Supreme Court cancelled 122 telecom licences allotted by the Congress-led government, ordering that telecom spectrum be auctioned instead, media reports hailed the verdict as “a decisive blow against corruption”. The court order in what was popularly called the 2G spectrum scam contributed dramatically to the anti-corruption movement that propelled Narendra Modi to power. More than a decade later, the Modi government laid the ground for a new revolutionary step in India’s telecom growth: using satellites to provide broadband services. But despite the Supreme Court’s 2012 order calling for the compulsory auction of spectrum, the Modi government decided to adopt the same route taken by the Congress: discretionary allotment of spectrum.

Source: https://www.thenewsminute.com/, March 27, 2024

Jio against commercial use of satellite spectrum without auction

Reliance Jio has written to the telecom department saying it should not allow satellite spectrum allocated administratively to be used for commercial services like fixed wireless access (FWA), as it’s a 5G use case and should be offered only through auctioned spectrum. It has also said that in case the Department of Telecommunications (DoT) decides to allow FWA for satcom players, the amount paid by companies for buying spectrum in an auction should be refunded, officials aware of the matter told ET, citing Reliance Jio’s letter to the DoT. The telecom giant owned by billionaire Mukesh Ambani is one of several companies competing for a licence in India's closely watched satellite spectrum allocation.

Source: By Kiran Rathee, https://economictimes.indiatimes.com/, March 29, 2024

India's fixed communication revenue to grow to $13.2 bn in 2028 vs $11.5 bn in 2023: GlobalData

Revenue from fixed communication services in India is expected to grow at a rate of 2.9% compounded annually, to $13.2 billion 2028 from $11.5 billion in 2023, driven by fixed broadband services, a report said. According to a GlobalData report out Thursday, revenue from fixed broadband services will grow at a CAGR of 3.5% in the 2023-2028 period, driven by a growth in broadband subscription and higher average revenue per user (ARPU) from fiber broadband. This, even as revenue from fixed voice services is set to decline at a CAGR of 4% over the five-year period, in line with the decline in fixed voice ARPU levels as users increasingly adopt mobile/OTT-based communication services, and operators offer free voice minutes with their fixed bundled plans, the report said.

Source: Subhrojit Mallick, https://economictimes.indiatimes.com/, Marcj 28, 2024

Don't pick up calls from foreign origin numbers like +92 on WhatsApp: DoT

The Department of Telecommunications (DoT) has cautioned mobile users against receiving calls from foreign origin numbers like +92 on WhatsApp. Further, the DoT Friday clarified that users should not share any information if they receive a call wherein the caller identifies himself as a government official and threatening to disconnect their mobile number for being involved in illegal activities. Issuing an advisory to mobile users, the DoT said citizens to report such fraud communications at ‘Chakshu-Report Suspected Fraud Communications’ facility of Sanchar Saathi portal (www.sancharsaathi.gov.in). Such proactive reporting would help DoT in prevention of misuse of telecom resources for cyber-crime, financial frauds, etc. The DoT has also advised citizens to report at cyber-crime helpline number 1930 or www.cybercrime.gov.in in case of already a victim of cyber-crime or financial fraud.

Source: https://economictimes.indiatimes.com/, March 29, 2024

 TOP

EV’s & Auto Electronics

Manipal Institute of Technology presents Solar Electric Vehicle Championship 2024

Grand celebrations marked the launch of  'Solar electric vehicle championship 2024' organized by The Manipal Institute of Technology (MIT) in collaboration with Coimbatore Society of Racing Minds (CSRM) on Thursday, March 28. Lt Gen Dr MD Venkatesh, vice chancellor MAHE inaugurated the  event by unveiling the trophies of the championship. Solar electric vehicle championship is one of the pivotal moments for MIT and MAHE. It is aimed at finding sustainable technological solutions in electric and solar energy modes. We are delighted to host the sixth edition of SEVC amidst the most technologically advanced campus in the country. MIT is giving very much importance to sustainable energy and it is promoting higher quality of research in this matter.

Source: https://www.daijiworld.com/, March 28, 2024

India Targets 30% Electric Vehicle Sales by 2030

India is setting an ambitious goal to electrify its roads, aiming for 30% of all new car sales to be electric vehicles by 2030. This push comes amid a confluence of factors making electric cars more attractive to Indian consumers. Electric vehicles are now the most economical option in India when considering total ownership costs, surpassing even CNG vehicles. Government incentives, coupled with falling battery prices and rising traditional fuel costs, are driving the surge in demand for EVs. To address the crucial issue of charging infrastructure, the Indian government is actively supporting the development of alternative fuel stations through subsidies and grants, as reported by ANI, a partner of TV BRICS.

Source: https://www.dailynewsegypt.com/, March 29, 2024

Electric vehicles gaining traction in India, but long-term policy needed: Lohia Auto CEO

Electric Vehicles (EVs) are slowly making inroads in the Indian automobile industry with the level of adoption accelerating in each year. Especially, the adoption rate in the two-wheelers and three-wheelers is higher in recent days. Total EV sales reached 1.53 million by the end of 2023, up from 1.02 million reported in 2022. Two-wheelers (2W) and three-wheelers (3W) experienced growth of 37 per cent and 66 per cent respectively during last year. There has been a substantial growth in the EV sector in the last five years. Five years back, there were hardly any numbers. Now, in percentage term, EV two-wheelers constitute around 5 per cent of total market share. Even all the government schemes (in the transportation sector like JNNURM) are getting converted into electric vehicle schemes.

Source: By Debasis Mohapatra, https://www.bizzbuzz.news/, March 29, 2024

Tariff cut on electric vehicles could lead to surge in imports from China: GTRI

The union government will have to manage the risks of over-reliance on foreign manufacturers as supply chain dependence on China will sharply increase as tariffs on electric vehicles (EVs) were slashed under the new EV policy, think tank Global Trade Research Initiative (GTRI) has said in a report. Fear of a rise in trade imbalance with China in the auto sector comes as nearly a quarter of India’s auto component imports already come from China and the Chinese firms manufacturing cars in India would further increase imports of most parts from China following the EV policy change announced earlier this month. However, high tariffs have also hurt the Micro, Small & Medium Enterprises (MSME) sector currently due to difficulty in procuring parts that has had implications on exports too.

Source: By Ravi Dutta Mishra, https://indianexpress.com/, March 26, 2024

China to challenge Biden’s electric vehicle plans at the WTO

China filed a World Trade Organization complaint against the U.S. on Tuesday over what it says are discriminatory requirements for electric vehicle subsidies. The Chinese Commerce Ministry didn’t say what prompted the move. But under a new U.S. rule that took effect Jan. 1, electric car buyers are not eligible for tax credits of $3,750 to $7,500 if critical minerals or other battery components were made by Chinese, Russian, North Korean or Iranian companies. The credits are part of U.S. President Joe Biden’s signature climate legislation, named the 2022 Inflation Reduction Act. A ministry statement didn’t mention the specific restriction. It said, though, that under the act and its implementing rules, the U.S. had formulated discriminatory subsidy policies for new energy vehicles in the name of responding to climate change. It said the U.S. move excluded Chinese products, distorted fair competition and disrupted the global supply chain for new energy vehicles.

Source: https://apnews.com/, March 26, 2024

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Defence & Solar

India to Deploy Domestic Laser Counter-Drone System on China Border

The Indian Army has inducted seven indigenous counter-drone systems for deployment along the border with China in the north. The Integrated Drone Detection and Interdiction System (IDD&IS) features both soft and hard-kill options with ranges of 2 to 5 kilometers (1.2 to 3 miles) and 800 meters (2,624 feet) respectively, according to The Times of India. A drone’s soft-kill options include jamming, spoofing, and disrupting communication between the drone and its operator, whereas hard-kill includes directed energy options such as laser and microwaves. According to the outlet, the vehicle-mounted system deploys jamming and lasers as its soft and hard-kill options. The systems provide an integrated capability to detect low radar cross-section drones or unmanned aerial vehicles and enable their destruction through integrated application of soft and hard kills.

Source: https://www.thedefensepost.com/, March 25, 2024

India, Germany push to boost defense ties

In a significant strategic change, Germany is signalling an interest in boosting military relations with India. Earlier this month, the German ambassador to India, Philipp Ackermann, said in an interview that there is now a "clear political will" in Berlin to improve defense ties with New Delhi, calling it a "huge paradigm shift." The defense secretaries of both countries held talks in Berlin at the end of February over developing defense cooperation, the security situation in the Indo-Pacific and possible joint exercises in the region. The German air force is now slated to take part in multilateral drills hosted by the Indian air force in August, along with France, the US and other countries. In October, a German naval frigate and a combat support ship are scheduled to visit India's western state of Goa.

Source: https://www.dw.com/, March 25, 2024

Watch: tejas mk-1a, india's upgraded fighter jet, takes maiden flight

The hugely anticipated first flight of an improved version of India’s TEJAS fighter took place today in Bangalore. The 18-minute flight of the first TEJAS MK-1A airframe ‘LA5033’ was flown by HAL chief test pilot Group Captain K K Venugopal and comes after two days of taxi tests at HAL’s airfield in the southern Indian city. With the first flight finally done, HAL’s real challenges begin now. The Indian Air Force has already placed orders for 83 of the TEJAS MK-1A variant, with orders for a further 97 being processed at the Ministry of Defence level. The IAF wants HAL to significantly ramp up its production rate of aircraft in order to give the sizeable TEJAS orders a shot at stemming fighter depletion rates in service. With a little under 40 TEJAS fighters in operational service across two squadrons — and 180 of the MK-1A inbound over the next few years — the TEJAS stands to become the IAF’s most abundant jet in service after the Su-30MKI.

Source: https://www.indiandefensenews.in/, March 29, 2024

Skyroot aerospace successfully test fires kalam-250 rocket engine

kyroot Aerospace, a space-tech company, has successfully test-fired the Stage-2 of Vikram-1 space launch vehicle, called Kalam-250, at the propulsion testbed of the Indian Space Research Organisation (ISRO), at its Satish Dhawan Space Centre (SDSC) in Sriharikota in Andhra Pradesh. The city-based firm in a press release on Thursday said Vikram-1 launch is slated to be a landmark event for the Indian space sector as its first private orbital rocket launch, and follows the remarkable suborbital space launch of India's first private rocket - the Vikram-S by Skyroot in November 2022. The test, done on Wednesday, which lasted 85 seconds, recorded a peak sea-level thrust of 186 kilonewtons (kN), which will translate to a fully expanded vacuum thrust of around 235 kN in flight, it said.

Source: https://www.indiandefensenews.in/, March 29, 2024

Astra microwave products bags ₹386 crore-order from bel

Astra Microwave Products Bags the microwave wireless technologies provider announced that BEL has awarded it orders worth ₹385.6 crore for the supply of Medium Power Radar (MPR) sub-systems. The domestic order is slated to be executed within 36 months, the company said in an exchange filing on Thursday. Astra Microwave Products designs and manufactures high-value-added radio frequency and microwave super components and sub-systems that find application in defence, space and civil communication systems. Astra’s product portfolio spans across Defence, Aerospace & Space Electronics systems, sub-systems and components.

Source: https://www.indiandefensenews.in/, March 29, 2024

TOP

MSME

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

CPSEs make 36% of their annual purchases in current FY from micro, small enterprises

Public procurement by central ministries and departments from micro and small enterprises (MSEs) stood at Rs 55,367 crore, 36.2 per cent of Rs 1.52 lakh crore in total procurement made by the government in the current financial year, showed official data from the MSME Sambandh portal on Friday. Importantly, the government has mandated public sector enterprises and departments to procure 25 per cent of their annual purchases from micro and small enterprises. Within the 25 per cent annual procurement target, public buyers are required to procure at least 4 per cent from MSEs led by scheduled caste/scheduled tribe entrepreneurs (SC/ST) and 3 per cent from women entrepreneurs.

Source: https://www.financialexpress.com/, March 29, 2024

45-day MSME payment rule: Impact and details of Section 43B(h) explained

To ensure timely payments to the Micro, Small and Medium Enterprises (MSME) sector, a new regulation will be implemented from April 1. This regulation requires companies to settle their dues with MSMEs within 45 days. Non-compliance will lead to a tax liability on the overdue amount. The Finance Act 2023 introduced an amendment to the Income Tax Act by adding clause (h) to Section 43B. This clause stipulates that any payments owed to MSMEs, not resolved within 45 days, will not qualify for tax deductions until the payment is made. The aim is to motivate larger entities to prioritise their settlements with MSME counterparts, thereby promoting a more robust economic environment for these smaller businesses. Section 43B(h) is applicable to transactions that involve the purchase of goods or services from enterprises registered under the MSMED Act, 2006.

Source: By Surbhi Gloria Singh, https://www.business-standard.com/, March 26, 2024

Niti Aayog comes up with roadmap to boost exports from MSME sector

Niti Aayog has made a case for a single information portal for exporters to promote e-commerce exports and improve access to finance, especially for micro, small & medium enterprises (MSMEs). In a report titled 'Boosting Exports from MSMEs', the Aayog said India has several portals that help exporters access information, most of which offer incomplete or outdated information. Therefore, creating a one-stop information data intelligence portal, using an Al-based interface will be essential to impart information to MSMEs. This portal will answer all the queries of a potential exporter related to market tariffs, required paperwork, sources of finance, service providers, available incentives, and potential customers.

Source: https://www.business-standard.com/, March 26, 2024

Final edition of SIDBI ET MSME Conclave sees high-powered sessions, talks of cluster significance for MSMEs

The final edition of the SIDBI ET MSME Conclave culminated with insightful sessions in Aurangabad that discussed aspects of prime significance for the MSME sector. The conclave — a series of events held in six cities — aimed to bring together MSMEs, policymakers and ecosystem enablers. The programme looked at tapping the next wave of growth opportunities, fostering knowledge exchange, enabling networking and helping to find ways to tackle challenges for sustainable growth among such enterprises. The Aurangabad edition kicked off with an opening keynote from Prakash Kumar, DMD, SIDBI, who spoke about how the institution looks at the three important sides of funding in the MSME sector — equity, debt and guarantee. Kumar also spoke of a fund of funds for startups.

Source: By Neha Dewan, https://economictimes.indiatimes.com/, March 26, 2024

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ELCINA EVENTS , ACTIVITIES & SERVICES 

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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 2023-24 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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	Hong Kong Electronics Fair 2024 13-16 Apr 2024 - Physical     Fair 6-23 Apr 2024 - Click2Match (Online)  13 Mar-12 May 2024 - hktdc.com Sourcing  Hong Kong Convention and Exhibition Centre               https://www.hktdc.com/event/hkelectronicsfairse
	Wire Dusseldorf 2024      Messe Düsseldorf GmbH 15 - 19 Apr 2024 Messe Düsseldorf,Am Staad, Düsseldorf, D-40474 Germany https://www.wire-tradefair.com/
	Automotive World Korea 2024 24 - 26 Apr 2024 COEX, Seoul, South Korea  https://www.automotiveworld.kr/
	The International Electronic Circuits 13-15 May 2024 Shanghai, China http://www.cpcashow.com/en/information.asp
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	4th Electronics Summit 2024 Radisson Hotel, Sector 18, Noida https://elcina.com/forthcoming-activities
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	13th Strategic Electron Summit July, Bangalore https://ses-india.in/
	Electronica India 11th -13th September 2024 India Expo Mart, Greater Noida https://electronica-india.com/en/trade-fair/
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	14th Source India Electronics Supply Chain February, Chennai Trade Centre https://event.sourceindia-electronics.com/

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