Investments made to build equipment and facility that will be eligible for subsidies under the new EV policy
根據印度新的電動車政策，用於建設設備和設施的投資將有資格獲得補貼
Investment in the creation of physical infrastructure such as plant and machinery, charging stations, and assets developed or acquired by companies will qualify for receiving incentives under the Scheme for Manufacturing of Electric Cars (SMEC). However, royalty payments made to overseas parent companies will not be considered as eligible investments under the scheme, as clarified by senior officials to ET. The SMEC aims to incentivize investments in establishing electric vehicle (EV) manufacturing capacity by lowering import duties on a select number of cars. Announced in March 2024, the new EV policy requires beneficiaries to invest $500 million in setting up electric car manufacturing facilities and comply with a 50% minimum domestic value addition commitment. As an incentive, the government will levy concessional import duties on cars imported by qualifying companies. During consultations held in April 2024, companies sought clarity on the definition of investment, which was defined to include money spent on plant and machinery, charging infrastructure, and company-owned assets, excluding premises. Up to 10% of building costs can also be billed as investment. These assets must be on the company’s books to qualify for incentives.
The consultations were attended by global and local companies, including Tesla, represented by The Asia Group (TAG) India, and Vietnam’s VinFAST, which is establishing an EV plant in Tamil Nadu. Indian car makers such as Tata Motors, Maruti Suzuki, and Mahindra & Mahindra participated, alongside global automotive giants like Hyundai, BMW, Kia, Volkswagen, Mercedes, Toyota, and Renault-Nissan. Another round of discussions with interested parties is scheduled for the following month, before the Ministry of Heavy Industries finalizes the guidelines.
小編點評：根據新的電動車政策，設備、工廠和充電基礎設施的投資將通過電動汽車製造計劃（SMEC）獲得補貼。然而，支付給海外母公司的權利金不符合補貼資格。包括特斯拉和VinFAST在內的公司，以及主要的印度和全球汽車製造商，參加了旨在說明投資標準的諮詢會議，並計劃在重工業部最終確定政策之前進行進一步的討論。
India emphasizes its ban on the import of specific IT and electronic goods
印度重申其對特定 IT 和電子產品進口的禁令
India has reaffirmed its restrictions on the import of certain electronics and IT goods, as stated in an official notification from the Commerce Ministry dated May 20. This order, which has been in place since 2021 and updated with requisite notifications, prohibits the import of unregistered, non-compliant notified products in the categories of electronics and IT goods. A government official, quoted by Reuters, emphasized that there is no significant change in policy, as these categories were already restricted. Specifically for LED products and DC/AC supplied control gears for LED modules, random samples from consignments will be tested for non-destructive safety parameters. Only consignments that comply with these parameters will be cleared by Customs, while non-compliant goods will be either re-exported or destroyed at the importer’s expense.
In August 2023, the government imposed restrictions on certain IT hardware items, which were subsequently adjusted in October following concerns from domestic and foreign companies. Importers are now allowed to bring in hardware items with an ‘authorization’ specifying quantity and value. Despite clarifications from the Directorate General of Foreign Trade (DGFT) that there are no restrictions on certain IT hardware products like desktop computers, the import of laptops, tablets, all-in-one personal computers, and ultra-small form factor computers remains restricted and is only valid with import authorization. Goods failing to meet the standards of the Bureau of Indian Standards or labeling requirements will need to be re-exported or scrapped by government agencies.
小編點評：印度重申其對特定電子和 IT 產品的進口禁令，這一禁令在最近的商務部通知中有所闡述。該禁令最初於 2021 年實施，並定期更新，主要針對這些領域中未註冊和不合法的產品。海關檢查將包括對 LED 產品和 LED 模塊用 DC/AC 控制設備的隨機抽樣檢測，不合法的產品將由進口商負責重新出口或銷毀。
India and UK achieve FTA based on human mobility and electric vehicles
印度和英國達成了基於人員流動和電動車的自由貿易協定
India and the UK are nearing the finalization of a free trade agreement (FTA) after negotiations that began in January 2022 achieved significant breakthroughs. While some differences remain, two major points of disagreement are close to being resolved. According to proposed terms, the UK may permit Indian professionals to work there under certain conditions, and in exchange, India may allow the import of premium electric vehicles, subject to a fixed cap. Finalizing the India-UK FTA is a top priority for the Union Commerce Ministry’s 100-day post-poll agenda. Thirteen rounds of negotiations have been completed, with the ongoing discussions marking the 14th round. Chapter-wise textual negotiations are nearly complete, and the schedules for goods and services are at an advanced stage, with mobility being part of the services-level discussions.
Trade between India and the UK increased to $12.98 billion in FY24, with the UK being India’s sixth-largest investor. Negotiations have accelerated recently, with a UK team visiting New Delhi in March, followed by Indian delegations visiting London in April and May, with more visits planned. If negotiations proceed smoothly, the FTA is expected to be signed before the UK elections next January. The UK has agreed in principle to allow work visas for Indian professionals for a fixed period, with renewal options based on mutually agreed conditions, though accompanying spouses may not be included. In return, India may permit the import of a fixed number of premium electric vehicles annually at reduced duties, subject to terms and conditions agreed upon by both nations.
India will begin producing iPhones in large quantities, replacing China
印度將開始大規模生產iPhone，取代中國的地位
Foxconn Technology Group Chairman Terry Gou announced that the iPhone will enter mass production in India this year, marking a significant shift from its traditional production base in China. Invited by Prime Minister Narendra Modi, Foxconn plans to expand its manufacturing operations in India, moving from producing older iPhone models in Bangalore to more recent ones. Foxconn is set to start trial production of the latest iPhones near Chennai before full-scale assembly. This move aligns with Apple’s strategy to capitalize on India’s rapidly growing smartphone market, which offers lower labor costs compared to China and potential to serve as an export hub. Local manufacturing will help Apple avoid 20% import duties, making its products more competitively priced in India.
India, the world’s fastest-growing smartphone market, is poised to become crucial for both Apple and Foxconn. Foxconn, which already assembles devices for Xiaomi and Nokia in Andhra Pradesh and Tamil Nadu, will invest about $300 million initially to set up production lines for Apple, with further investments as capacity expands. Gou emphasized the importance of diversifying the manufacturing footprint amid US-China trade tensions and indicated that Foxconn’s Indian assembly lines will serve both local and export markets by the time Apple announces its next iPhone models in September. Additionally, local production will support Apple’s retail expansion in India by meeting the 30% local sourcing requirement to open its own stores. Despite India’s market favoring cheaper models, local production is expected to enhance Apple’s competitiveness and market presence.
小編點評：鴻海科技集團董事長郭台銘宣布，iPhone生產將於今年轉移至印度，這是應印度總理納倫德拉·莫迪的邀請而進行的。此舉旨在利用印度日益增長的智能手機市場，並避免進口關稅，符合蘋果多元化其製造基地的策略。鴻海最初投資3億美元，此計劃強調了印度作為兩家公司製造和出口樞紐的重要性，尤其在全球貿易緊張局勢加劇的背景下。
Yuzhan Technology has leased warehouse space in Chennai following an increase in Apple iPhone exports from India
鴻海轉投資Yuzhan Technology因印度Apple iPhone出口量增加，已在金奈租用倉庫空間
Yuzhan Technology, part of Taiwan’s Foxconn Group, has leased approximately 550,000 square feet of warehousing space at ESR Industrial Park in Oragadam, Chennai, in response to a significant increase in Apple iPhone exports from India. This new warehouse, one of the largest for Foxconn in India, underscores the company’s commitment to scaling up operations to meet the growing demand for Apple products manufactured in India. Foxconn will pay a monthly rental of INR 26-28 per square foot for ten years, acquiring 320,000 square feet of dry storage space and signing a letter of intent for the remaining 230,000 square feet still under construction. ESR Industrial Park, spanning 100 acres, offers potential for 2.2 million square feet of leasable space and currently houses clients like Cubic, Siemens, A2MAC1, New Century Sofa, and Checkpoint.
Chennai has experienced a rise in logistical and industrial warehouse leasing activity, driven by demand from third-party logistics players and manufacturing. It is the second-largest logistics market in India after Mumbai, with a 19% market share, and second to Pune in industrial warehousing space, holding 24% of the market. In 2023, Chennai saw 10.78 million square feet of overall leasing activity, with warehouse leasing nearly doubling compared to 2022. The Oragadam submarket, a key industrial corridor for electronics and automobile manufacturing, saw a five-fold increase in gross leasing compared to 2022. Foxconn, the world’s largest contract electronics manufacturer, is expanding its manufacturing facilities in India, particularly in the south, aiming to double its workforce and investment by 2024. India exported smartphones worth around USD 15 billion in 2023-24, with iPhones contributing 65%. The government expects a quarter of all iPhones to be made in India by 2028, with some accessories like AirPods also being assembled locally. The demand for industrial and logistics space in Chennai continues to grow, driven by sectors like electronics manufacturing, automobiles, and FMCG, attracting investments from global companies.
Zoho of India to invest $700 million in the chip industry
印商 Zoho 計畫在晶片產業投資 7 億美元
Indian software firm Zoho is planning to enter the chipmaking industry and is seeking incentives from the federal government, with an investment plan estimated at $700 million. Established in 1996 and headquartered in Tamil Nadu, Zoho offers software and related services to businesses in 150 countries, competing with companies like Microsoft and Salesforce. The company is the latest to seek financial incentives from the government to set up a chip fabrication plant. Zoho aims to manufacture compound semiconductors, which have specialized commercial applications and are made from alternatives to the commonly used silicon in chipmaking. The proposal is currently under review by the IT ministry’s chip initiative panel, which has requested more information about Zoho’s potential customers.
Zoho has identified a tech partner to help establish the operation from scratch, although the firm’s name has not been disclosed. In March, Zoho’s founder and CEO Sridhar Vembu mentioned plans for a chip design project in Tamil Nadu, but further details were not provided. Zoho reported annual revenue of over $1 billion for the financial year ending March 2023. India’s business agenda includes a $10 billion package to boost the semiconductor industry, with the government recently approving the construction of three semiconductor plants worth over $15 billion by firms including Tata Group and CG Power. India’s semiconductor market is projected to be worth $63 billion by 2026.
小編點評：印度知名軟體公司 Zoho 準備投資 7 億美元進入晶片製造業，尋求政府對其計畫提供激勵。Zoho 專精於複合半導體，旨在擴展其產品組合，並利用印度日益增長的半導體市場。該計畫目前正在IT部門的晶片計畫小組審查中，Zoho 的舉措符合印度透過重大投資和戰略合作夥伴關係促進半導體產業發展的整體計畫。
India receives $40 billion in funding and surpasses Australia, Japan, and Singapore in terms of data center capacity
印度獲得 400 億美元的資金，並在資料中心容量方面超過澳大利亞、日本和新加坡
India has emerged as the leader in data center capacity in the Asia-Pacific region (excluding China) with around 950MW, surpassing major countries like Australia, Hong Kong SAR, Japan, Singapore, and Korea, according to CBRE South Asia Pvt. Ltd’s report ‘Asia Pacific Data Center Trends Q1 2024’. India is projected to add the highest capacity of approximately 850 MW during 2024-2026, followed by Japan (892 MW), Australia (773 MW), Singapore (718 MW), Hong Kong (613 MW), and Korea (531 MW). The country has become a top destination for data center investments from global operators, real estate developers, and private equity funds, securing commitments exceeding $40 billion between 2018 and 2023. This includes significant investments aimed at developing hyperscale facilities, with Maharashtra, Uttar Pradesh, West Bengal, and Tamil Nadu being the primary beneficiaries.
Mumbai dominates India’s data center market with over 50% of the total stock due to its financial significance and robust connectivity to the Middle East and Europe. Chennai follows with an 18% share, benefiting from its strategic east coast location. More than 60% of upcoming data center supply will be concentrated in Mumbai and Chennai, while Delhi-NCR, Bengaluru, and Hyderabad will account for over 30%. Emerging markets like Kochi, Jaipur, Ahmedabad, Lucknow, Patna, and Vishakhapatnam are also growing due to their strategic locations and improved infrastructure. India’s total colocation data center capacity has more than doubled in the past 18 months, reaching 1GW, with new supply projected to reach up to 250MW annually for the next five years. The demand is driven by cloud service providers, BFSI firms, retail, healthcare, entertainment, telecommunications, and other sectors.
小編點評：印度在亞太地區的資料中心容量方面取得了迅速增長，超越了澳洲、日本和新加坡等關鍵國家。預計未來兩年將新增約 850 MW 的容量，印度已吸引了超過 400 億美元的投資，孟買成為主要的樞紐，其次是清奈。這種增長得益於來自各個行業的需求增加，以及在馬哈拉施特拉邦、北方邦和泰米爾納德邦等關鍵地區對超級規模設施的戰略性投資。