VOL XXIV, ISSUE 10

31 May 2023

Industry Scan

   INDUSTRY  SCAN                                                                           

General

India's Semiconductor Mission to open second round of applications, Anil Agarwal-led Vedanta may have to apply afresh

After a long wait of over 15 months, the government of India is reopening the semiconductor application worth $10 billion again. Rajeev Chandrasekhar, Minister of State, Ministry of Electronics and IT, has confirmed the same, stating that the strategy is now also to encourage mature nodes of 40nm and above. Even existing applications, including Anil Agarwal’s Vedanta-Foxconn joint venture, may also have to apply afresh. The clarification from the minister follows news reports about the India Semiconductor Mission rejecting the Vedanta-Foxconn joint venture. ISM @Semicon_India is today announcing that it will start accepting and considering new applications for fabs from new and existing applicants. The first window for more expensive 28nm fabs was kept open for only 45 days in January 2022, and it received three applications that were evaluated by ISM and its Advisory group.

Source: By Nidhi Singal, https://www.businesstoday.in/, May 31, 2023

Will the US succeed in starving China of semiconductors?

China’s semiconductor industry is facing renewed pressure from the United States and its allies after Japan announced on May 23 that it would impose export restrictions on 23 types of chipmaking technology, including advanced semiconductor manufacturing equipment. The move comes after the US and the Netherlands introduced similar measures in recent months as Washington and its allies try to limit China’s access to advanced semiconductor chips and equipment. Last October, the US government introduced a series of export controls on advanced semiconductor chips. Since then, Washington has been lobbying the Netherlands and Japan to join its efforts to limit the development of China’s semiconductor sector. In a statement, a spokesperson for the Chinese Commerce Department said Beijing “strongly opposed” Tokyo’s decision to impose export control on items related to advanced semiconductor manufacturing, saying the move goes against free trade and international trade regulations and it’s an abuse of export control measures.

Source: By William Yang, https://indianexpress.com/, May 31, 2023

South Korea To Work Closely With China To Strengthen Semiconductor Supply Chains

Reports now surfaced that both South Korea and China have now decided to cooperate and solidify dialogues on semiconductor supply chains. According to Reuter’s report, China’s commerce minister has said that as there is increasing geopolitical tensions in semiconductor industry, concerns over chipset production volume, and national security both the countries have agreed to cooperate with each other. In the Asia-Pacific Economic Cooperation (APEC) conference that ended on Friday, both South Korean Trade Minister AhnDuk-geun and China's commerce minister Wang Wentao met and discussed this matter in detail. The ministers discussed strategies on how to perk-up the stability of the industrial supply chains and reinforcing cooperation in multilateral, bilateral and regional trades. Moreover, the Chinese commerce minister also said that they are looking forward to working closely with South Korea to improve investment opportunities and trade partnerships.

Source: https://circuitdigest.com/, May 30, 2023

MediaTek Envisions Roadmap to New Technologies

MediaTek, the Taiwan based global fabless semiconductor company, powering more than 2 billion connected devices a year, hosted its 12th Chapter of Technology Diaries themed ‘The Vision to Go Beyond with Brilliant Technologies’ with a focus on latest technologies from MediaTek across Automotive, Satellite Communication and Space Tech. MediaTek reiterated its commitment towards expanding its footprint across Smartphone and Smart Device ecosystem in India. MediaTek shared its latest portfolio of cutting-edge technologies and a line-up of 5G chipsets, including MediaTek Dimensity 9200+, 9000+, 8020, 7050, 7200, Kompanio 1200, MediaTek Dimensity Auto and MediaTek Genio 1200. MediaTek also showcased some of the latest collaborations across the portfolio with Motorola, Flipkart, HP, OnePlus, Lava, Xiaomi, Infinix, Oppo, Vivo, Tecno, Realme, iQOO and Samsung, among others.

Source: https://circuitdigest.com/, May 30, 2023

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Information Technology

MeitY invites applications for incentives under PLI 2.0 for IT hardware

The Ministry of Electronics and Information Technology (MeitY) has invited applications for incentives under the production-linked incentive (PLI) Scheme 2.0 for IT hardware. This scheme was approved by the Union Cabinet, led by Prime Minister Narendra Modi, on May 17, as part of the government's efforts to enhance India's manufacturing capabilities and promote self-reliance (Atmanirbhar Bharat). The PLI Scheme 2.0 for IT Hardware aims to strengthen the manufacturing ecosystem by encouraging the localisation of components and sub-assemblies, promoting the development of the domestic supply chain. It also offers greater flexibility and options for applicants and is linked to incremental sales and investment targets to incentivise growth.

Source: https://www.business-standard.com/, May 30, 2023

Why Most Companies Fail To Successfully Implement Information Security & Compliance Features

Organizations face challenges in implementing InfoSec security and compliance features. The latest research by Cognni highlights the major risks of inadequate detection, failure to protect sensitive information, and the dangers associated with data sharing. Organizations implement information security (IS, InfoSec) and compliance features to keep their data safe. However, getting this done right is not an easy proposition, as advancements in technology constantly pose new threats and open up new avenues for bad actors to breach cybersecurity software. And since data exists in so many forms – including operational data, financial data, and customer and employee information – and in such huge volumes, it’s difficult for organizations to keep it secure, even though they spend millions of dollars annually to do so.

Source: By Linda Rosencrance, https://www.techopedia.com/, May 30, 2023

How Russia Controls Information, Watches Citizens

Human rights supporters say Russia under President Vladimir Putin is using online technology to follow, censor, and control the population. Officials are introducing artificial intelligence (AI) systems to monitor social media for information that is not approved. They also are expanding a monitoring network with facial recognition cameras. Critics fear an expansion of online censorship and a loss of privacy rights in Russia. Protests that were organized online from 2011 to 2012 caused Russian officials to increase internet controls. Some laws permitted officials to block websites. Other laws required that cellphone operators and internet providers store call records and messages and share the information with security services if needed.

Source: https://learningenglish.voanews.com/, May 30, 2023

81% of organizations witnessing a shortage of skilled tech workers, says EY and iMocha’s report

Recent advancements in the field of technology have resulted in an unprecedented demand for skilled tech workers. This surge in demand for tech-specific skills goes beyond the field of information and technology. Various sectors are embracing high-end technologies to survive in the current digital landscape. Consequently, acquiring a skilled and talented tech expert has become as essential to banking and finance as it is to engineering and data analysis. he report’s findings are based on in-depth interviews with industry leaders from various sectors, across geographies like India, the US, the UK, and the EU.

Source: By Riya Tandon, https://economictimes.indiatimes.com/, May 31, 2023

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Telecom

BSNL loss widens to Rs 8,161 crore in FY23

Loss for state-owned Bharat Sanchar Nigam Ltd (BSNL) has widened to Rs 8,161 crore in FY23, compared to Rs 6,982 crore. The increase in consolidated losses for the telecom operator during the year is due to the provision for adjusted gross revenue (AGR) dues to the government. During the year, the company made a provision of AGR dues worth Rs 17,688 crore, and received the viability gap funding of Rs 16,189 crore. Owing to this adjustment, the company showed an exceptional loss of Rs 1,499 crore, which increased its total net losses. BSNL’s total expenses rose 5.1% to Rs 27,364 crore. Of the Rs 27,364 crore, employee cost, which includes salaries, wages, allowances, and other benefits, was at Rs 7,952 crore, an increase of 11% from FY22.

Source: by Jatin Grover, https://www.financialexpress.com/, May 31, 2023

Xiaomi partners with Dixon Technologies to make mobile phones in India

Contract manufacturer Dixon Technologies (India) Ltd on Wednesday said it is partnering with Xiaomi Corp's Indian arm to make and export phones for the Chinese firm. The news, which boosted Dixon's shares by 4 per cent, comes after Xiaomi India revealed plans to start making wireless audio products in the country by partnering with electronics manufacturer Optiemus. India has been encouraging global companies to invest more in local manufacturing as a part of its efforts to become a powerhouse in the global electronics supply chain.

Source: https://www.thehindubusinessline.com/, May 31, 2023

Trai to strengthen parameters for better services

The Telecom Regulatory Authority of India (Trai) is working on the modalities and parameters for updated quality of service (QoS) norms, including for 5G services, and will soon come out with a consultation paper seeking views on tightening rules to reduce call drops or call failures. The regulator is looking to utilise latest technologies like artificial intelligence (AI) and other digital tools to improve telecom services, a senior official told ET, asking not be identified.

Source: By Kiran Rathee, https://telecom.economictimes.indiatimes.com/, May 31, 2023

Telecoms company VEON in final stages of selling Russia operations

Telecoms and digital company VEON said on Tuesday that it had entered the final stages of the sale of its Russia operations. Veon said that as part of this process, it had submitted all necessary documentation to Euroclear, Clearstream and registrars for cancellation of VEON Eurobonds held by its subsidiary, PJSC VimpelCom.

Source: https://telecom.economictimes.indiatimes.com/, May 30, 2023

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EV’s & Auto Electronics

The easiest way to get a $7,500 tax credit for an electric vehicle? Consider leasing

Thanks to a boost from the government, leasing - not buying - is becoming the most affordable way to get your hands on an electric vehicle. Last year's Inflation Reduction Act provided a federal tax credit of up to $7,500 to use toward an EV. Under the rules, a dealer can apply that credit to any leased electric vehicle, no matter where it's made, to reduce a customer's monthly payment.

Source: https://energy.economictimes.indiatimes.com/, May 31, 2023

You can save up to Rs 32,500 on electric scooters before June 1

The government has reduced the subsidy provided under FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme applicable on electric two-wheelers registered on or after June 1, 2023. That means, prices of electric two-wheelers will go significantly after June 1. Meanwhile Ather Energy has said that the prices of its two-wheelers will increase by up to Rs 32,500.

Source: https://economictimes.indiatimes.com/, May 30, 2023

Credent Launches India's Largest Electric Vehicle (EV) Healthcare Delivery Fleet

Credent, known as C3 Logistics, is launching India's largest electric vehicle (EV) healthcare delivery fleet. This is a daring initiative that will surely help the healthcare sector's sustainability efforts. In today's fast-paced world, industries must rely on effective logistics solutions to survive. The need for dependable and creative logistics becomes even more crucial in the healthcare sector, where time-sensitive and delicate operations are a constant. This is where C3 Logistics steps in as the pioneer, revolutionizing the healthcare industry with its innovative mindset and approach to logistics services.

Source: https://news.abplive.com/, May 29, 2023

France opens first electric vehicle battery gigafactory

France’s first electric car battery plant has opened in the country’s former mining heartland as part of Emmanuel Macron’s “reindustrialisation” plan. Three government ministers and numerous local officials attended the inauguration of the Automative Cell Company’s (ACC) gigafactory near Lens, seen as the first step towards France challenging China’s dominance in the sector. ACC, which is equally owned by TotalEnergies, Jeep maker Stellantis and Mercedes-Benz, has received a €1.3bn package of state aid from France, Germany and Italy as part of a €7bn plan to build a string of new facilities across the countries.

Source: https://www.theguardian.com/, May 30, 2023

Chinese island shows the way to an all-electric future by 2030

With more than 75,000 charging points, electric vehicle owners in urban areas of the tropical island in southern China are usually no more than a kilometer or two away from somewhere to power up their cars. The extensive network is part of a plan by the provincial government to end the sale of fossil fuel cars by 2030 and have EVs and hybrids account for 45% of the island’s fleet — the first and only place in China to set such a goal. Its success could help provide a blueprint for the rest of the country to go all-electric in future. The island has certain advantages when it comes to supporting EVs. It’s about the size of Belgium, meaning most of its 10 million inhabitants make only short trips.

Source: https://www.japantimes.co.jp/, May 31, 2023

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Defence & Solar

India and russia should join forces to build commercial aircraft

The first Chinese-built commercial airliner recently completed its maiden flight safely, to the delight of most Chinese. When state-owned China Eastern Airlines flew its first C919, built by state-backed Commercial Aviation Corp of China (COMAC), from Shanghai to Beijing, carrying a planeload of proud passengers, it broke the duopoly of Boeing and Airbus on commercial aircraft capable of carrying 130 passengers or more. This is a lucrative market which India has the capability – and the right – to enter. China relies on foreign suppliers for vital parts of the plane, including the engine and avionics. This is what Boeing and Airbus do as well. Their strength is in designing and manufacturing the plane’s fuselage and wings so they, too, source the engine from GE, Rolls Royce or Pratt & Whitney (France’s Safran also makes engines, though mostly for military aircraft and rockets).

Source: https://www.indiandefensenews.in/, May 31, 2023

SFC energy, partner to supply fuel cell generators for indian defence forces

German fuel-cell specialist SFC Energy AG (ETR:F3C) and its Indian partner FC Tecnrgy Pvt Ltd have received an order to supply 900 stationary methanol fuel cell generators to the Indian Defence Force. The contract has an initial value of EUR 17.5 million (USD 18.75m) and covers the supply of the systems over a period of one year as well as their servicing and maintenance over a period of five years, SFC Energy said on Tuesday. The fuel cell solutions will be assembled by SFC’s Indian subsidiary and FC Tecnrgy at a new production facility in Gurgaon, Haryana, in India. The contract follows a recent EUR-16-million order from the Indian Defence Force for the delivery of 450 portable methanol fuel cell systems.

Source: https://www.indiandefensenews.in/, May 31, 2023

Poland buys 800 Hellfire missiles to arms its new attack helicopters

The Polish government has signed a deal to purchase 800 Hellfire II missiles that are to be carried by a new fleet of attack helicopters, with a request to buy Boeing AH-64E Apaches still in the pipeline. The contract for the sale of the missiles, which are manufactured by Lockheed Martin, was inked by the ministry’s Armament Agency and the United States Army Security Assistance Command (USASAC). The deal is worth about $150 million, according to officials. Deliveries are slated to begin this year and stretch through 2029. Polish Deputy Prime Minister and Defence Minister Mariusz Błaszczak said in a tweet Tuesday that the weapons are meant to arm “our AW149 support helicopters, and, eventually, the AH-64E Apache Guardian attack helicopters.”

Source: By JaroslawAdamowski, https://www.defensenews.com/, May 31, 2023

Denmark to Triple Defense Budget Over Next Decade

Denmark’s government announced Tuesday that it would triple its defense budget over the next 10 years in the wake of Russia’s invasion of Ukraine. Denmark intends to reach the NATO goal of spending two percent of gross domestic product on the military by 2030 — a target that few of the alliance’s 30 members ever reach. In 2024, investments in equipment, personnel, and infrastructure will amount to 6.9 billion kroner and should reach 19.2 billion kroner in 2033. The added funds are to be financed in part by the abolition of a public holiday that has already passed, despite protests from many Danes.

Source: https://www.thedefensepost.com/, May 30, 2023

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Consumer Electronics

Vietnam’s Smartphone Market Drops 30% in Q1 2023, Biggest Q1 Decline Ever

Vietnam’s smartphone market declined 30% YoY in Q1 2023, according to Counterpoint Research’s Vietnam Smartphone Channel Share Tracker, marking the industry’s worst Q1 decline ever. Poor macroeconomic conditions and weak consumer demand constrained the country’s smartphone market as people delayed their smartphone purchases during the period. Vietnam’s GDP grew 3.3% in Q1 2023, one of its lowest numbers in recent years. Investment into the country declined as FDI volumes were reduced. Citing poor business conditions, retailers had to scale back their expansion plans and re-evaluate their business strategies. Retail stores operated for fewer hours, which reduced the employees’ working hours and their incomes as well. Footfall in the retail stores was also quite low after Vietnam’s Tết festival in January. OEMs initially misread the demand, leading to inventory buildup in the channels, after which retailers tried to push the smartphones at discounted prices to clear the inventory. All the top OEMs except Apple witnessed a YoY decline in shipments in Q1 2023.

Source: https://www.counterpointresearch.com/, May 25, 2023

China’s Q1 2023 Smartwatch Shipments Drop to Lowest in 12 Quarters

China’s smartwatch market did not fully recover in the first full quarter after the country’s reopening. According to Counterpoint Research’s latest Global Smartwatch Model Tracker, China’s smartwatch shipments declined 28% YoY and 16% QoQ in Q1 2023 to reach their lowest level in 12 quarters. The top three brands were Huawei, Apple and BBK (imoo). They accounted for nearly 60% of China’s smartwatch market in Q1 2023. Among the types of smartwatches, the HLOS* smartwatch’s shipments saw the smallest YoY drop even as its share increased to 45% from 39% in Q1 2022. Meanwhile, China’s ‘kids smartwatch’ shipments decreased 31% YoY. The country is the world’s biggest kids smartwatch market. Although the Spring Festival can boost consumption generally, the demand for smartwatches was still weak in Q1 2023. This was similar to what we saw in China’s smartphone shipments. The market needs more time to recover.

Source: https://www.counterpointresearch.com/, May 30, 2023

Consumer electronics brand Dizo India's CEO Abhilash Panda steps down

Abhilash Panda, CEO of consumer electronics brand DIZO India, has stepped down after working for two years at the company to pursue new opportunities and challenges in his professional journey. DIZO appointed Panda as the CEO and official spokesperson for DIZO India in July 2021. Prior to joining DIZO, he was working as a Director at Flipkart driving business for the company’s mobiles vertical for the homegrown e-commerce marketplace. During his seven years at Flipkart, he worked with several global and Indian technology and lifestyle brands.

Source: By Pranav Sawant, https://www.techlusive.in/, May 29, 2023

India to lure manufacturers with electronics repair pilot project

India will start a pilot project this week to establish itself as an electronics repair hub by relaxing cumbersome import-export rules, a move that could draw tech majors such as Flex (FLEX.O) to expand such operations in the country. Prime Minister Narendra Modi has promoted electronics manufacturing in India and attracted the likes of Apple (AAPL.O) and Xiaomi (1810.HK), but the country still lacks an industry for repair outsourcing which is estimated to be worth $100 billion globally and currently dominated by China and Malaysia. Following a push by an industry group for IT and electronics manufacturers, MAIT, the Indian government will test changes to lower the time required for necessary approvals for imports and exports to a day from as much as 10 days.

Source: https://www.reuters.com/, May 30, 2023

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EMSIF

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

Jharkhand to set up MSME directorate, increase subsidy to 40%: CM Hemant Soren

In a bid to strengthen the Micro, Small and Medium Enterprises sector in Jharkhand, the state government is planning to set up a MSME directorate and increase the capital subsidy from 25 per cent to 40 per cent. Jharkhand Chief Minister Hemant Soren shared the details during the eighth meeting of the Governing Council of NITI Aayog in New Delhi Saturday, according to a press release sent by the Chief Minister Secretariat. Soren told the NITI Aayog’s Governing Council that special attention is also being paid to the simplification of procedures to promote MSMEs to instil confidence in investors and encourage them to venture in the wealth-rich state of Jharkhand.

Source: https://indianexpress.com/, May 28, 2023

Fast-tracking SME’s digital transformation

Small and Medium Enterprises (SMEs) play an important role in driving employment and fostering growth in emerging markets, including India. The MSME Ministry in India has been at the forefront of numerous initiatives, including the recently launched FIRST program, a forum for SMEs among government representatives and policymakers. As part of a nationwide study on the digital transformation of SMEs, we surveyed over 350 SME owners across various sectors in India. Our research demonstrates that SMEs can successfully transform with the right inputs. It also suggests that SMEs who have begun their transformation journey are gaining tangible benefits, including increased customer satisfaction, better quality, higher sales and profitability, and the ability to expand globally.

Source: https://www.financialexpress.com/, May 28, 2023

Bank credit to MSMEs jump 14% YoY in Apr-Dec FY23; micro units major beneficiaries: RBI annual report

Credit to micro, small and medium enterprises (MSMEs) by scheduled commercial banks increased by 14.2 per cent year-on-year (YoY) during the April-December period of the financial year 2022-23 from 11.7 per cent in the corresponding period of the previous year, according to the Reserve Bank of India’s (RBI) FY23 annual report published on Tuesday. Bank credit to MSMEs till the end of December in FY23 stood at Rs 21.5 lakh crore to 2.13 crore loan accounts vis-a-vis Rs 18.8 lakh crore to 2.47 crore accounts till December FY22. Overall, Rs 20.1 lakh crore were deployed to 2.64 crore MSME accounts in the entire FY22 in comparison to Rs 17.8 lakh crore to 4.20 crore accounts in FY21.

Source: by Sandeep Soni, https://www.financialexpress.com/, May 30, 2023

Warburg Pincus acquires 90% stake in MSME-lender Vistaar Finance for $250 million

Warburg Pincus, the equity investor, on Monday, announced its acquisition of the controlling stake at the MSME-lender NBFC Vistaar Finance in partnership with AvijitSaha, previously associated with the ICICI Bank. The New York-headquartered private equity player has acquired a 90 per cent stake in the Bengaluru-based NBFC for $250 million. According to the company’s statement, this deal is the company’s largest investment in the financial services sector in India. Post the acquisition, Ramakrishna Nishtala, Co-founder and CEO of Vistaar Finance will pass on the baton to AvijitSaha who will take over the NBFC as the CEO. Saha, till most recently, was the Head of Rural and Inclusive Banking and President at ICICI Foundation.

Source: https://www.financialexpress.com/, May 29, 2023

MSME Sector's Revenue Lileky To Exceed Pre-Covid Level In 2022-23 By 25%: RBI

The revenue for the micro, small and medium enterprise (MSME) sector is projected to exceed the pre-Covid level in 2022-23 by 25 per cent, said the Reserve Bank of India in a report. The MSME segment, which contributes about 29 per cent of India’s GDP and employs over 11 crore workers, recorded a modest recovery, RBI said in its annual report. With 99.8 per cent of MSMEs being unregistered, they account for a sizeable share of the unorganised sector output and employment. Various policy measures were introduced to support the sector from the onslaught of the COVID-19 pandemic, including the emergency credit line guarantee scheme (ECLGS), which aimed at meeting their liquidity needs for sustaining business operations.

Source: https://www.businessworld.in/, May 31, 2023

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ELCINA EVENTS , ACTIVITIES & SERVICES 

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Rajesh Rawat – 9911445890 / rajesh@elcina.com

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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 2022-23 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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