VOL XXV, ISSUE 20

31 October 2024

2. CBIC Instruction No. 23/2024-Customs dated 21st October 2024: Clarification on Origin Procedures under FTAs

The Central Board of Indirect Taxes and Customs (CBIC) has released Instruction No. 23/2024-Customs, addressing issues related to third-party invoicing under Free Trade Agreements (FTAs). This update clarifies customs procedures and the application of Certificates of Origin (CoO) under specific agreements like the ASEAN-India FTA (AIFTA).

 Key Highlights:

•  Acceptance of Third-Party Invoicing: Third-party invoicing is a recognized business practice and, in FTAs such as AIFTA, is explicitly permitted under Article 22. Customs should honor a CoO where a third-party invoice is used, provided the goods meet origin requirements.

• Customs Valuation and Verification: The CoO serves as proof of origin, while the invoice, including third-party invoices, is used for valuation. Customs officers may request additional information to verify the origin but should follow due process if initial documentation is deemed insufficient.

• Rules on Confidentiality and Currency Consistency: Under Customs Administration of Rules of Origin under Trade Agreements Rules, 2020 (CAROTAR), importers are not required to disclose confidential exporter information. The CoO and invoice are also not mandated to be in the same currency.

• Denial of Preferential Duty Claims: If documentation does not meet the FTA�s requirements, officers can deny preferential duties. However, they must follow the verification process outlined in the relevant trade agreement rather than deny claims outright without due process.

• Inflated Value Additions: Merely alleging that value addition is inflated is insufficient for claim rejection. It must be proven that the value addition does not meet required thresholds after removing ineligible costs.

This instruction aims to mitigate the challenges faced by importers and ensure a smoother process in utilizing CoOs under FTAs.

For more details, members are advised to refer to the official CBIC website regarding Instruction No. 23/2024-Customs dated 21st October 2024.

3. CBIC Instruction No. 24/2024-Customs dated 22nd October 2024: Issuance of Equipment Type Approval (ETA) for License-Exempt Wireless Equipment Devices

The Central Board of Indirect Taxes and Customs (CBIC) has issued Instruction No. 24/2024, clarifying the process for obtaining Equipment Type Approval (ETA) for license-exempt wireless equipment devices.

• Self-Declaration Process

  •  Applications for ETAs can be submitted on a self-declaration basis via the SARAL Sanchar portal (https://saralsanchar.gov.in). Upon approval, applicants can download their ETA certificates directly from the portal.

• Compliance Requirements

  • ETA holders must obtain a No Objection Certificate (NOC) or other necessary clearances from the Directorate General of Foreign Trade (DGFT) before importing equipment. Compliance with all import regulations is the responsibility of the ETA holders.

• Modification of Previous Guidelines

  • This instruction modifies the previous Instruction No. 16/2022-Customs dated July 21, 2022.

This initiative is part of the government's broader strategy to bolster the Telecom manufacturing ecosystem in India by reducing regulatory hurdles and promoting a more efficient approval process for essential wireless equipment, thereby encouraging domestic production and innovation in the sector.

For more details, members are advised to refer to the official CBIC website regarding Instruction No. 24/2024-Customs dated 22nd October 2024.

4. CBIC Instruction No. 25/2024-Customs dated 28th October 2024: Revised List of High-End and High-Value Used/Refurbished Medical Equipment

The CBIC has released Instruction No. 25/2024, updating the list of high-end and high value used/refurbished medical equipment, excluding critical care items. This revision follows directives from the Ministry of Environment and aims to streamline import procedures.

Key Highlights:

• Updated Equipment List: The instruction includes 38 categories of medical equipment such as MRI, CT, PET-CT, and robotic surgical systems.

• Regulatory Compliance: Customs officers are advised to be familiar with these changes to ensure efficient clearance processes.

• Implementation: Stakeholders are encouraged to align their operations with the new framework to enhance the availability of advanced medical technology in India

This initiative addresses the healthcare sector's immediate needs while promoting broader economic growth and sustainability, ultimately enhancing healthcare capabilities and benefiting India's electronics manufacturing landscape.

For more details, members are advised to refer to the official CBIC website regarding Instruction No. 25/2024-Customs dated 28th October 2024.

5. CBIC Circular No. 21/2024-Customs dated 30th October 2024: Mandatory additional qualifiers in import/export declarations inrespect of Synthetic or Reconstructed Diamonds w.e.f 01.12.2024

The Government of India has announced that, effective December 1, 2024, import/export declarations for synthetic or reconstructed diamonds will require additional qualifiers regarding their production methods. This decision is intended to enhance the quality and efficiency of customs assessments and reduce clearance times.

Currently, the information provided by importers/exporters is inadequate, leading to challenges in policy development and cargo processing. The mandatory declaration of these additional qualifiers will improve data accuracy and facilitate smoother customs operations.

This initiative is expected to enhance the regulatory framework for synthetic diamond imports and exports, improving operational efficiencies in customs processes. Synthetic diamonds play a crucial role in electronics manufacturing, being utilized in applications such as: Semiconductors for improved thermal conductivity, Microwave Components for enhanced thermal management, Optical Devices, including laser diodes, Heat Sinks for effective heat dissipation, Cutting Tools for precision processing, Quantum Computing applications, MEMS Devices known for durability and thermal performance.

For more details, members are advised to refer to the official CBIC website regarding Circular No. 21/2024-Customs dated 30th October 2024.

6. DGFT Trade Notice No. 21/2024-25 dated 17th October 2024 : Electronic Submission of Appendix 4H Certificates

The Directorate General of Foreign Trade (DGFT) has introduced an electronic system to facilitate the submission of Appendix 4H Certificates by certifying authorities, effective from October 17, 2024. This system allows certifying authorities to digitally sign and submit these certificates online, streamlining the process for exporters under the Advance Authorization (AA) and Duty-Free Import Authorization (DFIA) schemes under the Foreign Trade Policy (FTP).

Key Highlights:

• Electronic Submission: Certifying authorities can now sign Appendix 4H certificates digitally, facilitating the integration with online applications.

• Exporters' Workflow: Exporters can fill out and submit the Appendix 4H form online, with the digitally signed certificate automatically attached to their redemption applications.

• Support Resources: A user guide and FAQs are available on the DGFT website, The DGFT Helpdesk provides support via phone, online ticketing, and email.

This initiative is expected to simplify the certification process, improve efficiency in export operations, and enhance compliance with regulatory requirements in foreign trade.

For more details, members are advised to refer to the official DGFT website regarding Trade Notice No. 21/2024-25 dated 17th October 2024.

7. Notification No. 39/2024-25-DGFT dated 28th October 2024: Alignment of RoDTEP Schedule with Customs Tariff Act changes effective 01.10.2024

The Directorate General of Foreign Trade (DGFT) issued Notification No. 39/2024-25 on October 28, 2024, concerning the alignment of the Remission of Duties and Taxes on Exported Products (RoDTEP) Schedule following amendments to the First Schedule of the Customs Tariff Act, effective October 1, 2024.

Key Highlights:

• Changes to RoDTEP Schedule

  • Addition of 39 tariff lines at the 8-digit level.

  • Deletion of 13 tariff lines at the 8-digit level.

  • Modification of the description for 2 tariff lines.

• Access to Information: Details regarding the HS Codes, RoDTEP rates, and value caps are available on the DGFT portal - www.dgft.gov.in under the Regulations > RoDTEP section.

• The changes are implemented to ensure alignment with updates made under the Customs Tariff Act through the Finance Bill 2024.

This notification aims to enhance the clarity and applicability of the RoDTEP rates for exporters following the recent tariff changes.

For more details, members are advised to refer to the official DGFT website regarding Notification No. 39/2024-25-DGFT dated 28th October 2024.

For any queries regarding this ELCINA Policy Capsule, please contact policy@elcina.com.

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         INDUSTRY  SCAN                                                                             

General

India's Semiconductor Future: Addressing Skills Shortages & Quality Gaps

India aspires to be a semicon hub, targeting the expected USD 100.2 billion Indian semiconductor market by 2032 as per Custom Market Insights. Although it has already surpassed the USD 27 billion market size but Shetal Mehta, Founder, Suchi Semicon, believes that India is still in the developing stage. Right now, India is in the development stage, where semiconductor factories are coming up. In 2026-27, it would be in the ramping-up stage and 2028 or 2029 would be a time where it would achieve the establishment stage. The skills gap within the semiconductor workforce remains a pressing concern. Recently A report by TeamLease Degree Apprenticeship warned about a serious skills shortage in India's semiconductor industry, predicting a deficit of 250,000 to 300,000 professionals by 2027. Mehta experienced the same, therefore his company is in collaboration with Gujarat Technological University and Sardar Vallab National Institute of Technology for Workforce Training.

Source: By Navneet Singh, https://businessworld.in/, October 31, 2024

Semiconductor stock jumps 7% after company�s net profit increases by 86%

Semiconductor stock, which is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer, jumped upto 7 percent in the day�s trade upon declaring robust Q2FY25 results with an 86 percent jump in Net Profits. With a market capitalization of Rs. 34,128 Crores, the shares of Kaynes Technology India Limited were trading at Rs. 5,328 per equity share, up 2 percent from its previous day�s close price of Rs. 5,242.45. Its Revenue from operations grew by 59 percent YoY from Rs. 360.84 Crores in Q2FY24 to Rs. 572.11 Crores in Q2FY25 and it grew by 14 percent QoQ from Rs. 503.97 Crores in Q1FY25 to Rs. 572.11 Crores in Q2FY25. Its Net Profit grew by 86 percent YoY from Rs. 32.3 Crores in Q2FY24 to Rs. 60.2 Crores in Q2FY25 and it grew by 19 percent QoQ from Rs. 50.77 Crores in Q1FY25 to Rs. 60.2 Crores in Q2FY25.

Source: https://tradebrains.in/, October 31, 2024

Kaynes Tech eyes ₹4,000 crore in semiconductor business revenues by 2030

Kaynes Technology, an integrated electronics manufacturer focused on IoT solutions, is eyeing revenue of ₹4,000 crore from its new semiconductor facility in Gujarat by 2029-30. The company established the semiconductor unit with a capital expenditure of ₹3,300 crore, with a focus on advanced packaging to enhance margins. Jairam Sampath, CFO of Kaynes Technology, expects the semiconductor unit to receive approval by April-June 2025 (Q1FY26) and start contributing to revenue by January-March 2026 (Q4FY26). In the July-September quarter this year (Q2 FY25), the company reported revenue of ₹572 crore, with a margin of 14.4% and a profit after tax of ₹60 crore.

Source: By Prashant Nair, https://www.cnbctv18.com/, October 31, 2024

Samsung Electronics Posts Record-high Q3 Revenue; Semiconductor Division Remains Weak

Samsung Electronics recorded its highest-ever quarterly revenue in the third quarter of this year, despite sluggish profitability in the semiconductor (DS) sector due to a rise in one-off costs. On Oct. 31, Samsung Electronics announced its Q3 consolidated revenue of 79.1 trillion won (approximately $57.35 billion) and operating profit of 9.18 trillion won. The company surpassed its previous revenue record set in Q1 2022 at 77.78 trillion won. Compared to the same period last year, revenue and operating profit grew by 17.4 percent and 222.7 percent, respectively, propelled by an improved semiconductor market rebounding from last year�s severe downturn, alongside strong sales in strategic smartphone and TV markets. Exchange rates were also a key variable in third-quarter performance, with the stronger won negatively impacting overall operating profit by about 500 billion won.

Source: https://www.businesskorea.co.kr/, October 31, 2024

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Information Technology

MeitY's CERT-In trials anti-deepfake tech to combat AI-driven scams

The Indian Computer Emergency Response Team (CERT-In), part of the Ministry of Electronics and Information Technology (MeitY), is currently testing anti-deepfake technology to combat the malicious use of Artificial Intelligence (AI) in scamming unsuspecting individuals. Recently, Sunil Bharti Mittal, Chairman of Bharti Enterprises, shared a shocking account of an AI-driven scam that targeted his company. At the NVIDIA AI Summit in Mumbai, a source familiar with CERT-In�s efforts confirmed that the agency is actively testing this anti-deepfake technology. �The technology will not only detect deepfakes but will also support prosecution of such offenders in a court of law.� One recent case involved SP Oswal, Chairman of Vardhman Group, who lost ₹7 crore after scammers, posing as government officials and using fake documents along with virtual settings, persuaded him to transfer funds.

Source: By Imran Fazal, https://www.storyboard18.com/, October 31, 2024

Chief Minister M.K. Stalin to inaugurate IT park in Coimbatore

Chief Minister M.K. Stalin, who will visit Coimbatore city on November 5 and 6, will inaugurate the Elcot here. The park, which was announced in 2020, will have 2.66 lakh sq.ft of total built up area, including 1.56 lakh sq.ft of IT space. Constructed at an investment of ₹114.16 crores on 2.86 acres at Vilankurichi in Coimbatore city, the six-storey building will have space earmarked for startups too. The Chief Minister is also expected to inspect the workers� hostel that is under construction at Kurichi, and interact with the jewellers in Coimbatore city. The Chief Minister�s detailed programme schedule is yet to be finalised and we have not received any formal communication. However, we expect an interaction with the jewellers on the plan to have an integrated goldsmith work space.

Source: https://tartv.in/, October 30, 2024

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Consumer Electronics

Samsung says it is making headway in AI chip supply after disappointing results

Samsung Electronics said it would focus on producing high-end chips and was making progress on a major supply deal, as it sought to allay investor concerns over its semiconductor business that suffered a 40% quarter-on-quarter profit plunge. The comments by an executive on an earnings call helped lift Samsung shares more than 3% on Thursday, reversing earlier losses. The stock has been one of the worst performers among major chipmakers this year, losing nearly a quarter of its value, as the South Korean firm has struggled to catch up with rivals TSMC and SK Hynix that posted record third-quarter earnings on the back of the artificial intelligence boom. It did not disclose the major client, but analysts have said the qualification test has been conducted by Nvidia, which controls around 80% of the global AI chip market.

Source: https://www.cnbctv18.com/, October 31, 2024

Global Consumer Electronics E-Commerce Market Set For 13.3% Growth, Reaching $1,154.09 Billion By 2028

The consumer electronics e-commerce market has expanded swiftly in recent years. It is projected to increase from $614.98 billion in 2023 to $701.08 billion in 2024, reflecting a compound annual growth rate (CAGR) of 14.0%. This historical growth can be attributed to the convenience of online shopping, a wide range of products, competitive pricing, and the rise of mobile shopping. The consumer electronics e-commerce market is projected to experience significant growth in the coming years. It is expected to reach $1,154.09 billion by 2028, with a compound annual growth rate (CAGR) of 13.3%. The anticipated growth during the forecast period can be attributed to technological advancements, the integration of AI and personalization, the expansion of e-commerce marketplaces, and the rise of mobile payment options.

Source: https://www.einnews.com/, October 30, 2024

Festive sales: Buoyed by online sales & premiumisation, appliance makers expect up to 30% growth

The appliance & consumer electronics industry expects around 30 per cent growth in the festive season sales this year after a double-digit booster from online sale events of leading etailers Flipkart and Amazon and an expected final thrust from offline channels during Dhanteras week. This festive season, premiumisation is the flavour, where consumers are willing to pay extra for features such as energy efficiency, higher capacity and larger size and even showing interest in the high-end AI & IOT Technology-driven products, industry leaders said. Companies such as LG Electronics, Panasonic, Sony, Godrej Appliances and Haier started festive sales with a good kick start from the Onam festival and expect to continue the momentum till the remaining week of the nearly 45-day festive period, which concludes after Diwali.

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

Apple supplier Jabil eyes two more India units with $275 million investment

Apple supplier Jabil is looking to invest an additional $250-$275 million (Rs 2,102-Rs 2,312 crore) in India to build at least two more manufacturing units over the next three to four years, people told ET, as the US-based electronics component maker prepares to expand its operations in one of the world's fastest-growing markets for iPhones. Right now, they have two units in Pune where they make WiFi, NFC (near field technology), RFID (radio frequency identification technology), camera optics, and some other power electronics. They have proposed to set up one more unit in Tamil Nadu. Given the growing demand for consumer electronics, home appliances and e-mobility needs, they plan to expand and set up more unit.

Source: By Aashish Aryan, https://economictimes.indiatimes.com/, October 25, 2024

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Telecom

Broadband push to keep up employment in telecom: TeamLease

Telecom companies� push toward broadband penetration is driving a surge in new job opportunities amid muted growth in the overall telecom sector, recruitment firm TeamLease Services said. The penetration of wired broadband in India currently stands at around 13%, with this figure expected to accelerate as service providers prioritize broadband services over traditional mobility products to attract higher Average Revenue Per User (ARPU). The broadband market is expected to witness a 9-10% annual growth over the next few years, TeamLease said. The sector is witnessing new job roles in sales, installation, network maintenance, and customer support.

Source: By Himanshi Lohchab, https://economictimes.indiatimes.com/, October 29, 2024

Electronics And Telecom Parts Push India's Imports From China To USD 46.6 Bn

Imports from China into India surged nearly 11 per cent to USD 46.6 billion from April to August 2024, driven predominantly by a significant increase in computers and Telecom equipment. This growth is contributing to a widening trade deficit, which now stands at USD 40.8 billion, up from USD 35.7 billion during the same period last year. The latest data from the Indian commerce department reveals that the influx of computers and telecom parts has played a crucial role in this upward trend. Specifically, shipments of computers rose by 13.5 per cent, contributing USD 2.5 billion to the import total, while telecom equipment and electrical machinery accounted for an impressive USD 3.2 billion increase.

Source: https://menafn.com/, October 29, 2024

No more OTPs after November 1? Telecom companies working towards online safety

In a recent announcement, Indian telecom giants, including Jio and Airtel, have expressed their concerns over new regulations set by TRAI, for barring OTPs. The new regulation will be implemented on November 1, and these rules mandate that the telecom companies will ensure traceability for all transactional and service messages sent by e-commerce platforms, banks and other financial institutions. TRAI's rules further require telecom companies to block any message with an irregular sending chain, which potentially disrupts the delivery of OTPs and other important alerts. Initially, it was TRAI which directed the telecom operators to track messages from banks and financial institutions as early as August 2023. But now, as the November deadline approaches, the telecom companies are set to comply but report that many Principal Entities (PEs) and telemarketers are not ready for the transition.

Source: By Saumya Nigam, https://www.indiatvnews.com/, October 25, 2024

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EV�s & Auto Electronics

Xiaomi chief touts Nurburgring record ahead of EV launch

A prototype Chinese electric vehicle has set a record lap time at Germany's grueling Nurburgring track, its maker Xiaomi said on Tuesday just hours before a company event expected to reveal the production model of the car. Xiaomi Chief Executive Lei Jun said on Chinese social media platform Weibo the SU7 Ultra prototype completed the circuit in 6 minutes and 46.874 seconds, claiming the title of fastest four-door car on the challenging track. Electric motors can improve on the acceleration of gasoline-driven vehicles, and following the example of Tesla , Chinese EV makers have been competing to launch flagship models to take on luxury legacy sports cars and prove their technology and innovation capabilities.

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

Apple supplier TDK partners with McLaren Racing in bid for EV push

Apple supplier TDK has partnered with McLaren Racing in Formula E electric motor racing as the Japanese components manufacturer targets expansion in the electric vehicle sector. TDK, once well known to consumers for its cassette tapes, is the world's largest supplier of smartphone batteries. It is growing its passive components and sensors businesses and aims to build its presence in the EV supply chain. The company's technology is used in the Nissan e-4ORCE 05 cars used by McLaren, and TDK will look at supplying components such as inverters and sensors, an executive said. Automotive accounts for almost a quarter of total sales at TDK, which was founded in 1935, with the company a leading supplier of components such as ceramic capacitors and temperature sensors.

Source: https://www.business-standard.com/, October 29, 2024

EV demand shows signs of slowing in Europe and US: Tata Technologies CEO

Global engineering and product development firm Tata Technologies is seeing a slowdown in electric vehicle (EV) demand across the US and Europe, according to Managing Director and CEO Warren Kevin Harris. However, the company expects an improvement in the second half of the fiscal year. Harris attributes the EV demand challenges in the US mainly to the political climate driven by the uncertainty around the election. The contrasting positions of political candidates on EV incentives have created hesitation among original equipment manufacturers (OEMs), many of whom are waiting for policy clarity before committing to significant EV investments. In Europe, competition from China has added pressure on local markets. Harris pointed to the impact of Chinese EV imports, which have prompted some European OEMs to pause their plans as they look for ways to counterbalance the influx of China-made electric vehicles.

Source: https://www.cnbctv18.com/, October 29, 2024

Ford�s electric car division reports another billion-euro loss

With a loss of a whopping 2.46 billion dollars in the first half of the year, Ford Model e has already incurred a loss of 3.66 billion dollars after three quarters. In all three quarters, the division recorded an EBIT loss of over one billion dollars. In Q3/2023, the annual report already showed an EBIT loss of 1.3 billion dollars. This is mainly due to the high expenditure for investments in development and the plants combined with low sales � meaning that the electric car division is missing out on revenue. In the third quarter, Ford Model e achieved a turnover of 1.2 billion dollars with 32,000 vehicles sold � or 37,500 dollars per vehicle. By comparison, the van division Ford Pro was able to increase its deliveries by nine per cent to 342,000 vehicles in Q3, generating a turnover of 15.7 billion dollars.

Source: https://www.electrive.com/, October 29, 2024

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Defence & Solar

India aims less foreign dependence, ramps up defence aircraft production with Airbus factory launch in Gujarat

India will open the nation's first private military aircraft manufacturing facility on Monday, October 28, as the country aims to increase its local defence production to reduce reliance on imports, reported the news agency Bloomberg on Sunday, October 27. The private military aircraft manufacturing factory is a joint venture between Airbus SE and TATA Advanced Systems which will produce transport aircraft to aid the Indian military's aging fleet, as per the agency report. Spanish Prime Minister Pedro Sanchez is set to inaugurate the facility with Indian Prime Minister Narendra Modi in Gujarat, said the report. The first aircraft is scheduled to be delivered in 2026, and the remaining will be delivered by August 2031, reported the agency citing Indian officials aware of the development. The manufacturing facility comes after a $2.6 billion contract between Airbus and India for 56 - C-295 transporters three years ago. Out of these 56 aircraft, 16 will be made in Spain, and the rest will be built in India. Bharat Electronics Ltd. and Bharat Dynamics Ltd. will be contributing to the program, as per a statement quoted in the report.

Source: https://www.livemint.com/, October 27, 2024

Indian defence exports: From BrahMos to Akash, who are the major buyers?

The United States (US), France, and Armenia have emerged as the top three destinations for Indian defence exports, with Armenia in particular being the biggest client of 'finished' Indian weapons and equipment like 155mm artillery guns and the Akash air defence missile and Pinaka multi-launch rocket systems, The Times of India reported on Monday, citing sources. This comes at a time when India's defence exports have touched a record Rs 21,083 crore (approximately $2.63 billion) in the financial year 2023-24 (FY24), amounting to a growth of 32.5 per cent over the previous financial year's figure of Rs 15,920 crore. According to the Ministry of Defence (MoD), this figure indicates that Indian defence exports have grown by 31 times in the past 10 years, when compared to FY14. The country's public and private sector defence companies are undertaking defence exports to around 100 countries, according to the national daily. These exports include a wide range of arms, ammunition, and fuses. However, some complete weapon systems, such as the BrahMos supersonic cruise missile, artillery guns, Dornier-228 aircraft, radars, Akash air defence missiles, Pinaka rockets, and armoured vehicles are also being exported by Indian firms.

Source: https://www.business-standard.com/, October 28, 2024

Germany looks to strengthen defence, military ties with India

German Chancellor Olaf Scholz said on Friday he wanted to deepen defence ties with New Delhi and bring the two countries' militaries closer, in comments following a meeting with Indian Prime Minister Narendra Modi. Germany, which has not traditionally had close defence ties with India, is now pitching to join the latter's effort to wean its arms base from decades of dependence on Russia, at a time when the West seeks to counter China's growing influence. Scholz, accompanied by most of his cabinet, is leading a high-level delegation to New Delhi, betting that greater access to the vast Indian market can reduce Germany's reliance on China.

Source: https://economictimes.indiatimes.com/, October 25, 2024

Surge In Exports of Components To Advanced Economies Like The US & Software To France

Countries like the United States are significant markets for various components exported from different nations. For instance, India has recently emerged as a key supplier of military equipment, including aircraft and helicopter parts, to the U.S. This is part of India's broader strategy to enhance its defence manufacturing capabilities and increase exports of indigenous defence equipment. In 2022, India's overall exports to the U.S. reached approximately $82.9 billion, marking an annual growth rate of 12.1% over the past five years. By July 2024, this trend continued, with notable increases in specific product categories. Additionally, the exports to the US, consisted of sub-systems and components, which include global defence majors like Boeing and Lockheed Martin sourcing fuselage, wings, and other parts of aircraft and helicopters from India as part of their global supply chain networks as well as offset commitments. The TATA Boeing Aerospace venture in Hyderabad, for instance, is making the fuselage and secondary structures for Apache attack helicopters.

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

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MSME

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

43% New Applicants in MSME Sector for PLI White Goods

The 3rd Round of on-line application window for PLI Scheme for White Goods (Air Conditioners and LED lights) has attracted 38 responses with a  net committed investment of Rs 4121 crore ended on 12th October 2024 after being open for 90 days from 15th July, 2024. 43% of the new applicants are in the MSME sector which shows the confidence among MSMEs to become part of the value chain of manufacturing of components of ACs and LED Lights. The PLI scheme was launched by the Department for  Promotion of Industry and Internal Trade(DPIIT). The applicants include 8 existing beneficiaries of the Production Linked Incentive Scheme for White Goods (PLIWG) committing net incremental investment of Rs 1,285 crore. 30 new applicants have committed investment of Rs 2,836 crore proposing to manufacture varieties of critical components of ACs and LED Lights across India.

Source: https://smestreet.in/limelight/, October 15, 2024

'MSMEs key to achieve USD Five trillion economy': MP Suresh Prabhu

The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) hosted an interactive session in Vijayawada with former Union Minister and Rajya Sabha MP Suresh Prabhu, Indian Chamber of Commerce (ICC) President Ameya Prabhu, and ICC Director General Rajeev Singh. AP Chambers President Potluri Bhaskara Rao stressed that the MSME sector, the backbone of the economy, faces challenges due to the Covid-19 pandemic, the Russia-Ukraine and Israel-Gaza wars, high production costs, expensive financing, poor market linkages, and delayed payments. MSME exports have declined, labor productivity is low, and many MSMEs have closed in the past five years. He urged Suresh Prabhu to address these issues with the Union government and expressed optimism about the potential for upskilling and technology adoption to boost the sector.

Source: https://www.newindianexpress.com/, October 15, 2024

SBI plans to enhance threshold limit under instant loan scheme for MSME sector

To ensure easy and adequate credit availability to the MSME sector, the State Bank of India (SBI) is planning to enhance the threshold under the instant loan scheme from the existing Rs 5 crore. 'MSME Sahaj - End to End Digital Invoice Financing', provides solutions ranging from applying for the loan, documentation and disbursement of the sanctioned loan within 15 minutes, without any manual intervention. The bank also introduced a business rule engine based, data based assessment of the credit limits up to Rs 5 core. Anybody walking into our MSME branch has to give only their PAN and approval for sourcing GST data, we can give approval in 15-45 minutes. Simplification of the MSME credit is something that the bank is emphasising on and making lending cash flow based backed by the CGTMSE guarantee.

Source: https://economictimes.indiatimes.com/, October 13, 2024

FCRF and IEDUP Under MSME Department of Uttar Pradesh Sign MoU to Enhance Cybersecurity for Businesses

The Future Crime Research Foundation (FCRF) and the Institute of Entrepreneurship Development, U.P. (IEDUP), have signed a Memorandum of Understanding (MoU) to promote research and collaboration in emerging technology sectors, focusing on cybersecurity, legal frameworks, and digital transformation for MSMEs (Micro, Small, and Medium Enterprises). The MoU was signed by Harshvardhan Singh, Director of FCRF, and Arvind Kumar Singh, Associate Faculty and authorized signatory of IEDUP. Key figures present at the ceremony included Prof. Triveni Singh, Chief Mentor from FCRF, Mamta Chauhan, Senior Faculty at IEDUP, and Mr. Surjan Singh, Special Secretary (Retired). At present, Mr. Pawan Agarwal, Joint Commissioner, MSME & Export Promotion, GoUP is the Director of IEDUP. IEDUP, established by the Government of Uttar Pradesh in 1986, is a premier institution aimed at fostering entrepreneurship and human resource development.

Source: https://www.the420.in/, October 15, 2024

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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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FORTHCOMING EVENTS &  GENERAL INFORMATION 

International Events
	Consumer Technology Association. ​7th -10th January 2025 LAS VEGAS, NV https://www.ces.tech/exhibitors.aspx
	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
	ELECTRONICS EXPO 12th -14th DEC 2024 CHENNAI https://shorturl.at/2VFcu
	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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