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| VOL XXVII | ISSUE 20 | 31 October 2026 | Previous Edition |
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ELCINA Celebrates Contributions of Industry Leaders, Unveils Source India 2027 Theme
On 2 November 2026, ELCINA brought together industry leaders and government representatives from the semiconductor and electronics sectors to recognise leadership, promote technological excellence and discuss opportunities to strengthen India’s electronics manufacturing ecosystem. The event, held at the Ambassador Hotel, New Delhi, was themed “Co-Creating the Future: Celebrating Leadership, Nurturing Tech Innovation.”
The event felicitated Mr Gursharan Singh, Senior Vice President (BE Operations), Micron Technology, who received the ‘Ambassador for Indian Electronics Industry’ Award for 2025–26, and Mr Manoj Jain, Chairman and Managing Director, Bharat Electronics Limited (BEL), for their contributions to the industry. Thinksemi Infotech Ltd., represented by its Managing Director, Mr Sudarshan Ramajayam, was also recognised for its entrepreneurship and all-round excellence.
The evening also featured a presentation on the growth of Source India, ELCINA’s annual industry event promoting domestic manufacturing and value addition. Industry leaders also unveiled the theme for Source India 2027: “The Value Leap: Beyond Assembly. Towards Design & Innovation.” The event is scheduled to be held in Chennai from 17-19 February 2027.
A special session by Mr Nakul Jain, Co-Founder and CEO, APLYD, and Partner, Athena Infonomics, explored the role of artificial intelligence in improving competitiveness and operational efficiency across the electronics system design and manufacturing (ESDM) ecosystem.
A recurring theme in the discussions was the need for Indian electronics companies to invest in research and development (R&D) to build long-term capabilities and remain competitive. The programme also highlighted the potential of government initiatives, including the Electronics Components Manufacturing Scheme (ECMS), India Semiconductor Mission (ISM) and Modified Programme for Manufacturing of Electronic Components and Semiconductors (MPMS), to accelerate industry growth and strengthen domestic value addition.
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ELCINA Directory of Indian Electronics Industry 2025-26 
Companies committed to electronic hardware manufacturing with substantial value addition through production of components, subassemblies, parts, capital goods/machinery for manufacturing of electronics hardware, EMS providers, service providers such as quality/product testing as well as companies designing components and subassemblies are eligible for membership. Equipment companies from all segments of electronics (i.e., Consumer, Telecom, IT, Defence, Industrial, Medical and Automobiles) are welcome to join ELCINA membership once they commence manufacturing, assembling or designing activities in the country.
All Payments through local Cheque/Draft favoring ELCINA Display Center 
ELCINA has recently renovated its Display Center to meet the changing environment of the Industry. Small size Display booths are made to accommodate more and more companies Contact: saly@elcina.com |
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Batteries to autos: Chinese imports remain in top gear The Times of India | 19 October 2026 India’s imports of batteries from China nearly doubled to $2.9 billion during April–August, making batteries the country’s sixth-largest import item from China, according to Commerce Department data. Rising electric vehicle sales and India’s limited domestic battery manufacturing capacity are driving dependence on Chinese supplies. Imports of two- and three-wheelers, cars, telecom equipment and electronic components have also increased. The trade deficit with China widened to nearly $56 billion during the first five months of FY2027, up from $44.7 billion a year earlier. Exporters may be asked to monitor supply chains' indirect emissions The Economic Times | 19 October 2026 The government is considering whether Indian exporters should measure Scope 3 emissions across their supply chains for exports to all countries, rather than only markets such as the EU and UK, which have introduced carbon border measures. The Finance and Commerce ministries have held preliminary discussions, but no decision has been taken. Scope 3 emissions include indirect emissions from purchased goods, transport, raw materials and other value-chain activities. NITI Aayog has recommended phased, proportionate disclosures, prioritising large entities in high-impact sectors to limit compliance burdens on MSMEs. War-Torn Europe Propels Resurgent Indian Defense Industry Bloomberg | 22 October 2026 India’s ammunition exports to European countries have surged to at least $872 million in the four years since Russia’s invasion of Ukraine, up more than 1,600% from $49.2 million in the preceding four-year period, according to Trade Data Monitor. Around three-quarters of shipments went to 13 Eastern and Central European countries supporting Ukraine. India has become the second-largest supplier of ammunition and related materials to this group, behind South Korea. The growth supports domestic defence manufacturing but could complicate India’s longstanding ties with Russia. Govt collects ₹3.25 trn in taxes in lieu of ₹19,000 cr mobile PLI: Vaishnaw Business Standard | 28 October 2026 Union IT Minister Ashwini Vaishnaw said India collected ₹25,000 crore in direct taxes and ₹3 trillion in GST from the mobile phone industry, against ₹19,000 crore paid in production-linked incentives. Electronics manufacturing employs 25 lakh people, including 12 lakh in mobile manufacturing. In FY2024-25, electronics production reached ₹11.3 trillion and exports ₹3.3 trillion, while mobile phone production rose to ₹5.5 trillion. The government has introduced a ₹62,500 crore Mobile Phone Manufacturing Scheme to expand domestic production and develop Indian smartphone brands. TOP
SEZ Rules Amended to Ease Operations for IFSC Units and Funds
The government has amended the Special Economic Zones Rules, 2006, to clarify space and lease requirements for funds set up in International Financial Services Centres (IFSCs) and define the commencement of service activities for IFSC units. The changes also allow eligible aircraft and ship leasing units to use shared office space or manpower, subject to IFSC Authority approval, and link renewal of Letters of Approval to the Authority’s recommendations. Ministry of Commerce and Industry Department of Commerce | CG-DL-E-17102026-277245 | 15 October 2026 Customs Duty Concessions Notified for Specified Goods from New Zealand
The government has notified customs duty and cess concessions on specified goods, including wines, Mānuka honey and kiwifruit, effective October 20, 2026, under the India–New Zealand trade agreement. The notification also establishes tariff rate quotas for imports such as Mānuka honey and albumins, subject to quantity limits, DGFT allocation, customs system recording and prescribed certification requirements. Ministry of Finance Department of Revenue | CG-DL-E-17102026-277238 | 16 October 2026 BIS Registration Requirement for Standalone Hard Disk Drives Deferred to May 2027
MeitY has extended the implementation date for mandatory BIS registration of standalone hard disk drives under the Electronics and Information Technology Goods (Compulsory Registration) Order, 2021, from November 5, 2026, to May 1, 2027. The requirement covers compliance with IS 13252 (Part 1):2010, while provisions for USB Type external hard disk drives remain unchanged. MeitY | CG-DL-E-19102026-277286 | 16 October 2026 CBDT Prescribes Form for Tax Exemption on Government Securities
The CBDT has amended the Income-tax Rules, 2026, requiring taxpayers claiming exemption on interest and capital gains from specified government securities to furnish Form No. 173A. The form captures taxpayer details and information on securities held, transaction values, interest income and capital gains, with certain disclosure requirements made optional for the Bank for International Settlements (BIS). Ministry of Finance Department of Revenue Central Board of Direct Taxes | CG-DL-E-19102026-277288 | 19 October 2026 TOP
General Nexon Geochem to set up ₹1,250-crore rare-earth permanent magnet facility in Andhra Pradesh The Hindu Business Line | 16 October 2026
Govt to review 2019 mineral policy amid new sector priorities Business Standard | 20 October 2026
The Centre will review the National Mineral Policy, 2019, to address changing sector requirements, including critical minerals, recycling and deep-sea resources. The Mines Ministry will constitute a nine-member committee chaired by its Additional Secretary to assess developments since the policy was formulated, identify provisions requiring changes and recommend a comprehensive revision. The panel must submit its recommendations within two months of its constitution. The existing policy promotes transparency, sustainable mining, private investment, exploration, regulatory effectiveness and safeguards for project-affected communities. Tata Electronics wants bigger bite of Apple The Economic Times | 23 October 2026
Honeywell leaning on physical AI to net $1 billion India revenues The Economic Times | 30 October 2026
Dixon has ₹1,110-crore PLI incentive pending The Economic Times | 30 October 2026
Semiconductors Chip war exposes India’s semiconductor vulnerabilities, industry leaders say The Hindu | 27 October 2026
Industry leaders at the Semiconductor Summit 2026 in Chennai said US-China tensions have exposed India’s vulnerabilities in semiconductor technology and supply chains. They called for stronger domestic technology capabilities, expanded manufacturing capacity and reduced dependence on critical imports. Panellists highlighted gaps in materials, manufacturing expertise and specialised talent, stressing the need to identify technologies India can develop independently. They also emphasised diversifying supply sources and building international partnerships to strengthen resilience as countries increasingly compete for secure access to semiconductor technologies and production capacity. SK hynix starts USD 1.5 billion financing program to support domestic chip suppliers ANI | 28 October 2026
Infineon to invest €1.1 billion in Europe's first 300mm GaN power fab The Economic Times - Electronics | 28 October 2026
Information Technology GCCs emerging top career choice for tech talent: Survey The Times of India | 21 October 2026
Indian technology professionals increasingly prioritise hands-on AI training and clear career progression, according to a Talent500 survey of 2,000 technology, product and data professionals. While 71% want practical AI upskilling, only 29% receive it from their employers. Career clarity is equally important, with 87% saying defined career paths influence employer choice. Global capability centres (GCCs) were the preferred next career move for 69% of respondents. ANSR co-founder Vikram Ahuja said GCC hiring was growing 15–18% annually, with roles evolving rather than disappearing. AI impact on job market: Software majors delete 24,000 jobs across IT and engineering in a year The Economic Times | 22 October 2026
India’s six largest IT services companies recorded 92,000 employee exits over the past year, while overall hiring fell by 24,422 to 68,000, according to staffing firm Xpheno. Their combined workforce declined nearly 3% to 797,722 in October 2026. Exits exceeded hiring in IT and engineering functions in five of the previous six months. Industry experts attribute the trend to workforce optimisation, AI-driven automation and reduced replacement hiring, even as demand for specialised AI, cloud, cybersecurity and engineering skills continues growing. Indian IT companies see business in policing AI agents Mint | 26 October 2026
India’s major IT services firms are expanding their AI governance offerings as enterprises seek to manage the deployment, security and performance of AI agents. TCS, Tech Mahindra, HCLTech and Cognizant are developing software and capabilities to coordinate agents, control access and monitor costs and outputs. TCS is focusing on an agentic control platform, HCLTech is acquiring firms to strengthen its capabilities, and Cognizant has launched AI Nexus to track spending, govern output quality and document results across teams. TOP
Consumer Electronics Yash Fans plans ₹152.74 crore plant, expects 3,500 jobs in Chhattisgarh Mint | 17 October 2026
Chhattisgarh is entering consumer electronics manufacturing with Yash Fans planning a ₹152.74 crore plant in Nava Raipur, expected to create 3,500 jobs. Chief Minister Vishnu Deo Sai attended the project’s foundation ceremony, highlighting its potential to expand employment and diversify the state’s manufacturing base. The facility will use locally produced steel and aluminium to manufacture finished goods, retaining more value within the state. Yash Fans supplies products to brands including Crompton, Havells, Usha and Milton. The plant’s production capacity and operational timeline remain unspecified. Ecommerce festive sales fizzle out on price pangs The Economic Times | 19 October 2026
India’s online festive shopping season is off to a slow start, with ecommerce delivery dispatches during the first 10 days of Amazon’s Great Indian Festival and Flipkart’s Big Billion Days running 10–12% below last year, according to industry executives. Rising prices of smartphones, appliances and laptops have weakened demand, with some products becoming 30–40% more expensive. Smartphone unit sales fell 16% year-on-year during the early festive period. Amazon, however, reported strong traffic and higher sales during the opening phase of its event. India’s smartphone shipments fall 26% to a decade-low third-quarter level despite festive season: Report The Times of India | 19 October 2026
India’s smartphone shipments fell 26% year-on-year to 35.8 million units in Q3 2026, their lowest third-quarter level since 2016, according to Omdia. Higher prices, cautious spending, weaker online demand and Diwali’s later timing dampened shipments. Chinese brands’ combined market share declined to 68% from 75% a year earlier, while Samsung and Apple gained ground. Samsung reclaimed the top position with 6.7 million units, followed by Vivo at 6.4 million, down 34%. The market is expected to contract further in 2027. Mivi opens ₹200 crore electronics manufacturing facility in Hyderabad The Times of India | 31 October 2026
Telecom India's telecom gear market to double to $50 billion by FY32: Report The Economic Times - Telecom | 21 October 2026
India’s telecom equipment market is projected to double from $25 billion in FY2025 to $50 billion by FY2032, growing nearly twice as fast as the global market, according to KPMG in India. The report highlights opportunities arising from the convergence of AI, semiconductors, telecom networks and cloud infrastructure. Mobile network traffic is expected to grow 17% annually between 2025 and 2030, compared with 2.7% annual growth in operator revenues. Domestic manufacturing capabilities are expanding, with telecom equipment import substitution reaching approximately 60%. India notifies new telecom rules that allow time-bound exemptions to test emerging technologies The Economic Times | 22 October 2026
The government has notified the Telecommunications (Regulatory Sandbox) Rules, 2026, allowing selected telecom technologies, services, products and business models to be tested in controlled environments with exemptions from certain regulatory requirements. Sandboxes may be initiated by the government or approved following applications. Trials can run for up to 24 months, with extensions of up to 12 months subject to conditions. Applicants must pay a non-refundable ₹10,000 processing fee. Safeguards include prior user consent, free participation, compliance with data protection and security laws, and restrictions on commercial availability during testing. Jio Platforms Soar After India’s Largest-Ever Initial Public Offering The Wall Street Journal | 28 October 2026
EV’s & Auto Electronics Volkswagen freezes India EV investment amid JSW talks: What the pause means for its electric car plans Mint | 24 October 2026
Battery replacement cost, safety fears top concerns among hesitant EV buyers: Study The Economic Times - Auto | 29 October 2026
Battery replacement costs are the biggest concern preventing Indian consumers from buying electric vehicles (EVs), followed by safety risks and charging times, according to a PulseAI Research survey of 1,300 consumers. In the study, 23.2% of hesitant or undecided shoppers cited replacement costs, 20.9% battery safety or fire risks, and 20.1% long charging times. An eight-year battery warranty was the most preferred confidence-building measure, followed by access to long-term reliability data, low-interest loans and discounted charging packages. Too Many Cars, Too Few Buyers? Why Is China Winning Globally, But Losing Domestically NDTV | 30 October 2026
China’s electric vehicle industry is facing mounting pressure from excess production capacity, an overcrowded domestic market and aggressive price competition, despite its growing global success. Manufacturers including BYD, NIO, Xiaomi and Geely have expanded rapidly, supported by government backing, investment and rising demand. However, production capacity has outpaced domestic sales, leaving companies struggling to keep factories running profitably. Price cuts have made EVs more affordable but squeezed margins, exposing the risks of rapid industry expansion and intensifying competition among manufacturers. TOP
Defence & Solar DAC clears defence procurement proposals worth ₹2.12 lakh crore The Hindu | 26 October 2026
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has granted Acceptance of Necessity (AoN) for defence procurement proposals worth approximately ₹2.12 lakh crore for the Army, Navy and Air Force. Around 82% of the proposed acquisitions will be sourced from domestic industry. The approvals cover military platforms, weapons and surveillance systems intended to strengthen the three services’ operational capabilities, mobility and combat preparedness. The proposals mark a significant step towards meeting India’s defence requirements through increased domestic procurement. India's Jakson Solar to invest up to $525 million in solar cells, ingot-wafer plants Reuters | 26 October 2026
India must make its defence chips end-to-end, say scientists The Hindu | 27 October 2026
Senior defence scientists have called for India to develop an end-to-end domestic semiconductor ecosystem for defence applications. V.K. Saraswat, former Director General of the Defence Research and Development Organisation (DRDO), warned that imported chips could leave network-centric weapons, including the BrahMos cruise missile and proposed Sudarshan Chakra air defence shield, vulnerable. As modern warfare increasingly relies on semiconductor-powered command, control and communications, the scientists argued that India must accelerate chip design, manufacturing and packaging rather than wait until 2030–35 to develop advanced semiconductor capabilities. Vikram Solar bags 290 MW module order from NLC India for Rajasthan project The Economic Times - Energy | 27 October 2026
India defence firm eyes Gulf market amid Iran war, explores making 1,000-km strike drone in Oman Firstpost | 30 October 2026
Noida-based IG Defence has signed an MoU with Oman’s MSA Global LLC to explore co-development and local manufacturing of three Indian defence platforms for Oman and the wider Gulf region. These include KAL, a one-way attack drone with a stated range of up to 1,000 km; BAJ, an unmanned drone interceptor; and JWALA, a micro-missile system for counter-drone operations. IG Defence said the platforms’ intellectual property and technology would remain Indian-owned and India-designed. Manufacturing arrangements have not been finalized. TOP
MSME India launches state-level outreach to help MSMEs, farmers tap FTA export opportunities The Hindu Business Line | 21 October 2026
The government is working with state administrations to help farmers, workers, women, youth and MSMEs tap export opportunities under India’s expanding network of free trade agreements (FTAs), Commerce and Industry Minister Piyush Goyal said. The outreach initiatives aim to improve utilisation of trade pacts covering 38 countries and help domestic businesses access international markets. Goyal said the focus is on translating trade agreements into practical opportunities for people and businesses across India, supporting broader participation in global trade and export growth. MSMEs remain upbeat despite rising input costs, manufacturing sentiment strongest: SIDBI The Times of India | 25 October 2026
Indian MSMEs reported improved business confidence in July-September 2026, with the MSME Business Confidence Index (M-BCI) rising to 60.4 from 59.3 in the previous quarter, according to SIDBI’s latest outlook survey. Manufacturing emerged as the most optimistic sector, while confidence across manufacturing, trading and services remained above the neutral level of 50. Nearly 49% of surveyed enterprises reported improved business conditions, 33% saw no change and 18% reported a deterioration. Rising input costs continued to pressure businesses, despite a positive outlook. Govt extends RELIEF scheme till March-end; MSME exporters seek more fiscal support The New Indian Express | 26 October 2026
The Commerce Ministry has extended the RELIEF scheme under the Export Promotion Mission until March 31, 2027, amid geopolitical uncertainty. Component II will continue providing 95% risk coverage through ECGC for upcoming shipments to specified regions. However, MSME exporters have criticised the exclusion of Component III and sought additional fiscal support, including freight subsidies, to offset rising shipping costs and war-risk premiums. Industry representatives have also called for a 24-month rolling scheme, warning that short deadlines could discourage exporters from accepting long-term international orders. TOP
More ELCINA Publications & Reports TOP
UPCOMING EVENTS & GENERAL INFORMATION DOMESTIC EVENTS
OVERSEAS SHOWS
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Nexon Geochem plans to invest ₹1,250 crore in a rare-earth
permanent magnet manufacturing facility in Andhra Pradesh, in
partnership with the Andhra Pradesh Economic Development Board.
The plant will have an annual production capacity of 600 tonnes of
sintered neodymium-iron-boron (NdFeB) magnets. These magnets are
essential for electric vehicles, wind turbines, industrial
automation and defence applications. The project supports India’s
efforts to build a domestic critical minerals ecosystem and reduce
dependence on imported rare-earth permanent magnets.
Tata Electronics is exploring manufacturing glass-based
enclosures and specialised metal components to expand beyond
iPhone casings and increase its share of Apple’s supply chain in
India. The move aligns with Apple’s growing manufacturing
footprint in the country, which reportedly assembles a quarter of
global iPhones. India recorded $13.2 billion in iPhone exports
during the first five months of the current financial year. Tata
Electronics has received government approval under the Electronics
Components Manufacturing Scheme (ECMS) for mobile enclosure
manufacturing.
Honeywell Technologies aims to generate $1 billion in revenue
from its Indian operations within two to three years, according to
Anant Maheshwari, president of strategy and president and CEO of
global regions. The company, focused on building, process and
industrial automation, is betting on physical AI by combining its
hardware and software capabilities. Following Honeywell
International’s restructuring into three publicly traded
companies, Honeywell Technologies has 11,000 employees in India,
representing about 20% of its global workforce, and manufactures
products for domestic and international markets.
Dixon Technologies had an outstanding ₹1,110.06 crore receivable
under the government’s production-linked incentive (PLI) scheme as
of September 30, 2026, pending formal determination and
disbursement by the Project Management Agency. The amount relates
to incentive claims recognised by a subsidiary for eligible
revenues exceeding its annual ceiling, based on unused
entitlements of other applicants. The subsidiary has also
recognised a ₹576.95 crore liability payable to its customer.
Dixon maintains that the claim is valid, supported by independent
legal advice.
South Korean chipmaker SK hynix has launched a 2 trillion won
(USD 1.5 billion) financing programme to provide affordable credit
to domestic semiconductor suppliers. The initiative targets small
and medium-sized manufacturers of chip materials, parts and
equipment, offering larger loans, preferential interest rates and
lower guarantee fees. SK hynix and four commercial banks will
contribute 100 billion won, while the state-run Korea Trade
Insurance Corporation will provide guarantees of up to 2 trillion
won. The programme aims to strengthen supplier capabilities and
supply-chain resilience.
Infineon Technologies will invest approximately €1.1 billion to
establish the world’s first high-volume gallium nitride (GaN)
power semiconductor manufacturing facility using 300-millimetre
wafers at its Villach site in Austria. Production is scheduled to
begin by the end of 2027, with cleanroom expansion continuing
through 2034. The larger wafers can produce 2.3 times more chips
than 200-millimetre wafers. Supported by the European Chips Act,
the project has received European Commission approval for €319
million in state aid, strengthening Europe’s semiconductor
manufacturing capabilities.
Home-grown consumer electronics brand Mivi has inaugurated a
₹200 crore integrated research, development and manufacturing
facility at Fab City in Hyderabad. The unit can produce five lakh
earbuds and 75,000 soundbars monthly and is expected to create
around 2,500 jobs. Funded by parent company Avishakaran
Industries, the facility will support manufacturing across Mivi’s
consumer electronics portfolio. Telangana is positioning itself as
a destination for electronics investment, while Mivi has sought an
additional 100 acres for future expansion.
Jio Platforms shares rose 21% to ₹1,357 in early trading
following India’s largest-ever initial public offering, through
which the company raised more than $3 billion. The strong debut
came despite a 1.2% decline in the benchmark Sensex index. The
offering was oversubscribed more than 22 times, according to
National Stock Exchange data, signalling strong investor demand
for the telecom and digital services company led by billionaire
Mukesh Ambani. The performance contrasts with lacklustre
post-listing trends among several major Indian IPOs.
Volkswagen AG has paused further investment in its Indian
electric vehicle programme while seeking clarity on a potential
partnership with JSW Group, according to a Bloomberg report. The
German automaker has completed design work for a proposed project
using a lower-cost EV architecture originally developed for China
but awaits a clearer business plan before committing funds. The
pause comes amid Volkswagen’s global cost-cutting drive, weak
European demand and intensifying competition from Chinese
manufacturers. Its India EV plans have not been cancelled.
Jakson Solar plans to invest up to ₹50 billion ($525.2 million)
to establish 3 GW each of solar cell and ingot-wafer manufacturing
capacity in India. The company aims to commission its solar cell
facility by December 2027 and its ingot-wafer facility by the
third quarter of fiscal 2028. The facilities will primarily serve
the merchant market. Jakson Solar already operates a 1.2 GW module
plant and has secured equipment procurement tie-ups. The
investment aims to strengthen domestic supply chains and reduce
import dependence.
Vikram Solar has secured an order to supply 289.87 MWp of N-type
TOPCon solar modules to NLC India for an 810 MW solar power
project at RUVN Solar Park in Pugal, Bikaner, Rajasthan. The order
was placed on behalf of NLC India Renewables. The company said the
contract strengthens its order book amid growing demand for
high-efficiency, domestically manufactured solar modules. The
project also highlights the role of advanced module technology and
reliable suppliers in supporting India’s expanding utility-scale
solar capacity.
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A newsletter published by ELCINA, New Delhi. The information contained in this newsletter is for private circulation only. Despite our best efforts, some errors could have crept in. You are advised to verify authenticity of the information before further use. Electronic Industries Association of India (ELCINA) ELCINA House, 422 Okhla Industrial Estate, Phase-III, New Delhi 110020 (India). E-Mails: info@elcina.com Tel: 011-41615985, 41011291 Website: www.elcina.com |