Wistron to Invest ₹1,000 Crore in Telangana Electronics Manufacturing Facility
Taiwanese electronics manufacturer Wistron, which sold its Karnataka iPhone facility to Tata Electronics in 2023, is set to expand its India footprint with a new ₹1,000 crore investment in Telangana. According to sources cited by The Economic Times, the company is scouting for land in Hyderabad to set up a unit focused on manufacturing servers, routers, and switches. The facility is expected to be located in one of the city’s electronics parks on the outskirts, though the final site has not yet been confirmed. This move follows Wistron’s exit from its Kolar plant—hit by labor unrest in 2020—and comes alongside its ongoing ₹1,450 crore laptop manufacturing project in Bengaluru, slated to start operations by January 2026.
Wistron’s fresh investment signals India’s growing attractiveness as a manufacturing hub beyond consumer electronics, with opportunities in enterprise IT hardware. For global firms, the expansion underlines Telangana’s emergence as a competitive destination for high-tech manufacturing, supported by industrial parks and favorable policy frameworks. This development also reflects a broader shift of global supply chains towards India, offering a strategic entry point for companies seeking to diversify production away from traditional East Asian bases.
Editor’s Note: Taiwanese electronics giant Wistron plans to invest ₹1,000 crore in a new Telangana facility to manufacture servers, routers, and switches, marking its continued expansion in India after selling its Karnataka iPhone plant to Tata Electronics. This move highlights India’s rising appeal as a hub for enterprise IT hardware and Telangana’s growing prominence in high-tech manufacturing.
India Approves Financial Support for 23 Firms Under Chip Design Incentive Scheme
The Indian government has cleared financial support for 23 companies to develop chipsets under its Design-Linked Incentive (DLI) scheme, Minister of State for Electronics and IT Jitin Prasada informed Parliament. In a written reply to the Lok Sabha, Prasada said 10 of these companies have secured venture capital funding to scale up design prototypes for commercialization, while six have successfully completed tape-outs at both advanced and mature semiconductor technology nodes. Overall, 72 domestic firms have been approved for access to state-of-the-art Electronic Design Automation tools, with projects spanning surveillance cameras, energy meters, microprocessor IPs, and networking applications.
Under the DLI scheme, companies can receive up to 50% of eligible costs for design prototyping, scaling up, and volume production, capped at ₹15 crore per application. To aid commercialization of Intellectual Property cores, chips, and System-on-Chip solutions, the scheme also provides 6–4% incentives on net sales turnover, up to ₹30 crore over five years. This initiative underscores India’s push to strengthen its semiconductor ecosystem, presenting opportunities for foreign firms to partner with local players, invest in design capabilities, and leverage the country’s growing infrastructure to tap into both domestic and global chip markets.
Editor’s Note: India has approved financial support for 23 companies under its Design-Linked Incentive (DLI) scheme to boost chip design, with 10 firms securing venture capital and six completing tape-outs across various technology nodes. The initiative offers up to ₹15 crore for prototyping and ₹30 crore in sales-based incentives, aiming to strengthen India’s semiconductor ecosystem and attract global partnerships.
Parliament Panel Slams MeitY Over ₹1,574 Crore PLI Fund Surrender
The Ministry of Electronics and Information Technology (MeitY) has drawn criticism from the Parliamentary Standing Committee on Communications and Information Technology after revealing it had to surrender ₹1,574 crore from its Production-Linked Incentive (PLI) budget for FY24 due to lower-than-expected output from participating companies. MeitY had initially projected spending ₹16,549 crore across incentive schemes, later revising it to ₹14,421 crore, but actual utilisation stood at just ₹12,847 crore. Around 70% of the shortfall came from the PLI and the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem, with the ministry stating that disbursements depend directly on company performance—something it argued was beyond its control.
The committee rejected this justification, asserting that MeitY holds a broader responsibility for effective monitoring, facilitation, and execution of these schemes, rather than placing the onus solely on private firms. It urged the ministry to conduct immediate reviews, improve coordination with stakeholders, and hold regular meetings to ensure more accurate projections and higher fund utilisation in the future. For non-Indian companies, the episode underscores the importance of realistic performance commitments and close engagement with Indian authorities when participating in government incentive programs, as underperformance can delay or reduce potential payouts.
Editor’s Note: A parliamentary panel criticized MeitY for surrendering ₹1,574 crore from its FY24 PLI budget due to underperformance by participating companies, with actual fund utilization falling short of revised projections. The committee rejected MeitY’s justification and called for better monitoring, stakeholder coordination, and regular reviews to improve future scheme execution and fund disbursement.
Trump Announces 25% Tariff and ‘Penalty’ on Indian Goods Over Russia Ties
US President Donald Trump has announced a 25% tariff on goods from India, along with an unspecified “penalty,” citing the country’s arms and energy purchases from Russia during the ongoing war in Ukraine. The measures, set to take effect on August 1, come amid a sweeping global tariff campaign, with Washington pushing nations to strike new trade deals before the deadline. While calling India a “friend,” Trump criticised New Delhi’s trade policies, accusing it of imposing some of the world’s highest tariffs and “strenuous and obnoxious” non-monetary barriers on US goods. He linked India’s defence and energy imports from Moscow to Russian President Vladimir Putin’s war effort, noting that the US had a $45.7 billion goods trade deficit with India in 2024. Shortly after the announcement, Trump revealed a deal with Pakistan to jointly develop its oil reserves, remarking that “maybe they’ll be selling oil to India some day.”
The announcement adds strain to US-India trade ties at a time when Washington is sealing tariff-limiting agreements with key partners, including the EU, Japan, Vietnam, and the UK, while extending talks with China. For non-Indian companies, the move signals potential shifts in supply chains, as tariffs and penalties on Indian exports may push global buyers to seek alternative sourcing. It also underscores the need for multinational firms to prepare for rapid policy swings in US trade strategy, especially as geopolitical considerations—such as Russia’s war in Ukraine—are increasingly tied to economic measures.
Editor’s Note: President Trump has announced a 25% tariff and unspecified penalty on Indian goods, citing India’s arms and energy ties with Russia amid the Ukraine war, while criticizing its trade barriers and highlighting a $45.7 billion US trade deficit. The move strains US-India trade relations and signals potential supply chain shifts, urging global firms to brace for rapid changes in US trade policy driven by geopolitical factors.
India Seeks US Tariff Shield for Electronics Exports Ahead of August 1 Hike
India is pushing for favourable tariff treatment for its electronics exports to the US, seeking to avoid being grouped with major exporters such as China, Vietnam, and Taiwan under Washington’s planned trade measures. The Ministry of Electronics and Information Technology (MeitY) has urged the Commerce Department to negotiate exemptions or softer duties amid US-India trade talks, warning that steep tariffs could undercut the sector’s rapid growth driven by government incentives. Electronics have emerged as a key export category, with the US being the largest market. In FY25, US-bound electronics exports rose 43.5% to $15.89 billion, led by a surge in smartphone shipments, which nearly doubled to $10.56 billion. However, exports of components, including photovoltaic cells, slumped over 30% amid rising domestic US production, intensified Chinese competition, and stricter port inspections.
Without a policy shift, India’s electronics will face an average 26% tariff from August 1, in addition to the 10% baseline on most imports under US President Donald Trump’s reciprocal tariff regime. While smartphones, computers, and semiconductors were briefly exempted, officials fear sector-specific duties could still be imposed. The government argues that the country’s fledgling electronics industry needs tariff protection to compete with entrenched suppliers to the US market. For non-Indian companies, the outcome of these talks could influence sourcing strategies, as higher tariffs on Indian electronics may prompt buyers to shift orders to other manufacturing hubs—or present opportunities for partnerships and joint ventures within India to mitigate the impact.
Editor’s Note: India is lobbying for tariff relief on electronics exports to the US ahead of a planned August 1 hike, warning that steep duties could hinder growth in a sector that saw a 43.5% export surge in FY25, led by smartphones. With tariffs set to average 26%, the outcome of trade talks may reshape global sourcing strategies and open doors for partnerships within India to offset rising costs.
Taiwan-India Collaboration Boosts 5G Rollout with Advanced Tech and Manufacturing
As India accelerates its digital transformation, Taiwan has emerged as a key partner in advancing the country’s 5G ambitions, providing critical technological expertise and high-quality manufacturing. Known for its world-leading semiconductor sector and telecom innovation, Taiwan is supplying Indian telecom companies with advanced components, small cells, and antenna systems that enable faster and more reliable networks. Its experience in building dense 5G infrastructure in urban areas is also serving as a blueprint for Indian cities developing smart, connected ecosystems. Beyond hardware, the partnership extends to skill-building initiatives, with Taiwanese firms conducting technical training and knowledge exchanges for Indian engineers.
The collaboration aligns closely with India’s ‘Make in India’ initiative, as Taiwanese inputs help fill vital gaps in domestic manufacturing capacity. For non-Indian companies, this growing synergy between India’s scale and Taiwan’s precision offers opportunities to integrate into a rapidly expanding telecom supply chain, either as technology partners or as investors in local production ecosystems. With both nations sharing democratic values and a tech-driven growth agenda, the partnership is shaping a faster, smarter, and more inclusive 5G future—one base station at a time.
Editor’s Note: India’s 5G rollout is gaining momentum through collaboration with Taiwan, which provides advanced telecom components, infrastructure expertise, and technical training to support smart city development and network reliability. This partnership complements the ‘Make in India’ initiative and presents global firms with opportunities to join a growing telecom supply chain through technology integration and local investment.
India, US in Trade Talks After Trump Slaps 25% Tariff on Indian Exports
India is in trade discussions with the United States following US President Donald Trump’s order imposing a 25% tariff on Indian exports, an Indian government source said on Friday. The tariffs, part of a broader executive order targeting dozens of countries, include steep duties such as 35% on Canadian goods, 50% on Brazilian exports, 20% on Taiwanese goods, and 39% on Swiss shipments. Nearly $40 billion worth of Indian exports could be hit by the measures, which risk placing New Delhi under harsher trade conditions than many of its peers. While the Indian foreign ministry expressed confidence that bilateral ties would “continue to move forward,” talks remain stuck over issues such as US access to India’s highly protected agriculture and dairy sectors—areas where New Delhi has refused to compromise due to domestic sensitivities and religious concerns.
A US delegation is expected to visit New Delhi later this month to continue negotiations, though senior US officials have cautioned that differences cannot be resolved overnight. Trump has also threatened additional penalties over India’s commercial ties with Russia and membership in the BRICS bloc, which he has accused of pursuing “anti-American policies.” For non-Indian companies, the outcome of these talks could reshape regional supply chains and market access, as steep tariffs on Indian goods may create openings for alternative exporters while prompting multinational firms to reassess investment and sourcing strategies in South Asia.
Editor’s Note: India and the US are engaged in trade talks after President Trump imposed a 25% tariff on Indian exports, potentially affecting $40 billion in goods and sparking concerns over harsher treatment compared to other nations. With negotiations stalled over agriculture and dairy access, the outcome could reshape regional supply chains and influence global investment strategies in South Asia.
India Expands FDI Limits, Eases JV Rules to Attract Global Investors
Foreign direct investment (FDI) inflows into India have nearly doubled over the past decade, rising from USD 36 billion in FY 2013–14 to a provisional USD 81 billion in FY 2024–25, driven by liberal policies allowing 100% FDI under the automatic route in most sectors. The government has recently increased foreign equity limits in sensitive areas such as defence, telecoms, and insurance, with the latter now open to 100% foreign ownership if the entire premium is invested domestically. Joint ventures (JVs), either contractual or incorporated, remain a preferred entry route for overseas companies, with compliance governed by the Companies Act, FDI policy, FEMA, tax laws, and the Competition Act. Sector-specific caps, approval requirements for investors from land-border countries, and strict pricing norms for equity instruments continue to shape deal structures.
For non-Indian companies, the reforms signal an expanded window to participate in India’s growth story, but due diligence remains critical. Strategic sectors, complex real estate processes, and evolving compliance norms require careful navigation. Enforcement of JV terms, including non-compete and non-solicit clauses, can be restrictive post-termination, while arbitration remains the preferred dispute resolution method. Similar regulatory scrutiny applies in other Asian markets such as Taiwan, where JVs must secure prior investment approval and comply with governance rules under the Company Act. Together, these developments underscore the importance of tailoring JV structures to local legal frameworks while leveraging policy openings for deeper market access.
https://law.asia/navigating-laws-on-joint-ventures
Editor’s Note: India has expanded FDI limits and eased joint venture rules to attract global investors, with inflows rising to a provisional USD 81 billion in FY 2024–25 and 100% foreign ownership now allowed in key sectors like insurance and telecoms. While the reforms offer broader market access, non-Indian firms must navigate complex compliance norms, strategic sector restrictions, and enforceable JV terms to capitalize on India’s growth opportunities.